FINANCIAL REPORT
April 2008 March 2009

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

2. Basic Policy on Distribution of Profits, and Dividend for This and Next Term
Amano places great importance on its policy for dividends to shareholders. Fundamental to this is its policy for the return of profit to shareholders, based on maintaining astable ordinary dividend of ¥26 annually (¥13 interim and ¥13 year-end), together withappropriate results-based distributions and flexible purchasing of treasury stock. The
Company aims to maintain a payout ratio of at least 35% on a consolidated basis and aratio of dividend to net assets of at least 2.5%. It also aims to improve capital efficiency
by setting a target ratio of 60% for total distributions (return to shareholders), combining dividends and purchase of treasury stock.
In line with this policy and considering this term’s results, we plan to pay a year-end
dividend of ¥13 per share, ¥4 lower than the amount paid at the end of the previous
year. As a result, the annual per-share dividend will be ¥30 (including the ¥17 pershare paid as the interim dividend), ¥4 lower than the previous year. This corresponds
to a dividend payout ratio of 105.9% and a 2.9% ratio of dividends to net assets on aconsolidated basis. Due to purchases of treasury stock, this year’s total payout ratio (return to shareholders) will be 241.4%.
Retained earnings will be used to fund effective investment aimed at the fundamental
enhancement of the Company’s capacity to conduct its business operations. This will
include the expansion and strengthening of existing business fields, strategic investment in growth fields, and spending on research and development, as well as the rationalization of production plant and equipment for the purpose of reducing costs andfurther improving product quality.
With regard to the dividend for the next fiscal year, faced with an extremely difficult
environment we will redouble our efforts to improve business performance, and will
aim to pay a dividend for the year of ¥30 (interim dividend of ¥13, and year-end dividend of ¥17).

1

3. New Medium-Term Management Plan
Amano and its Group companies each continue the tradition of evolving continuously
in response to changes in the times, while maintaining the following four immutablestrategies of the Amano Group.
1)
2)
3)
4)

Emphasis on Time & Ecology business fields, and enhancement of core business
Being a niche leader in the business fields in which we excel
Constant restructuring
Management based on cash flow

Based on these four fundamental strategies, in April 2008 Amano inaugurated a new
three-year medium-term management plan. An outline of the plan is set out below.
(1) Basic Policies
Building on the success of the previous management plan, which aimed at “a strong
profit structure and sustainable growth,” under the new medium-term management
plan the Group is positioning Amano McGann, Inc. of the U.S. and Horosmart, S.A. of
France as key drivers for global development of parking system and information systembusinesses, particularly in the U.S. and Europe, and focusing on business expansion in
Japan.
Priority issues under the new plan are listed below.
1. Business Strategy• Expanding business in the North American and European markets
In North America we will merge Amano McGann’s parking management systems
with Amano Group systems and equipment, and expand the market for parking systems by strengthening direct sales structures to work closely with customers in proposing solutions.
In Europe we will merge Horosmart’s French systems, equipment, and customer basewith Amano Group systems and equipment. We will also expand our information
system business in the French market and use this as a springboard for expansion
into the wider European market, including the UK and the Benelux region.
• Expanding business in the Japanese market
In the Japanese market we will reinforce ties with domestic group companies, particularly in the information system and parking system fields. We will also further
expand our existing customer base and create new markets by strengthening our service and total solution capabilities and launching new products.

22. Enhancing Profitability• Boosting profitability in the information system and parking system businesses
In overseas markets we will increase profitability by implementing our business strategies for Amano McGann and Horosmart to maximize these profitable companies’
contribution to consolidated results. This will be achieved through increased sales
in the North American and European markets, particularly sales of high-added-value
products.
As for the Japanese market, in the information systems field we will continue to standardize large-scale solution systems and increase added value by expanding sales ofsoftware to small and medium-sized businesses. In the parking systems field we will
boost profitability by developing cost-competitive products and strengthening cost
control for each site.
3. Improving Capital Efficiency• Return on equity (ROE)
As well as focusing on enhancing the profitability of all businesses, we will strive toimprove capital efficiency through steps such as flexible purchasing of treasury stock
and aim for ROE of 10.0% on a consolidated basis.
(2) Numerical Targets
From the latter part of 2008, the worldwide financial crisis stemming from the subprime mortgage issue in the U.S. seriously affected the real economy on a global
scale. Since the business environment envisaged when we formulated the new
medium-term management plan has changed dramatically, we intend to revise thenumerical targets of ¥114,000 million in net sales and ¥12,700 million in operating
profit that we originally set for the fiscal year ending March 31, 2011.
Management Plan Target Results

Net sales
Operating profit
Operating profit to sales
Ordinary profit
Net income(Unit: Millions of yen)

Year ending March 31, 2009 - (results) Year ended March 31, 2010 - (Forecast) Year ending March 31, 2011 - (Forecast)Amount
YOY change (%)
Amount
YOY change (%)
Amount
YOY change (%)
91,812(1.6%)
88,000(4.2%)−−
5,371(46.3%)
4,800(10.6%)
−
−
5.9%
−
5.5%
−
−
−
5,294
(49.8%)
5,200(1.8%)−−
2,214(63.7%)
2,700
22.0%
−
−

Kaoru Haruta
President and CEO
3

Analysis of Business Results
Business Results in the Year Ended March 31, 2009

The Japanese economy deteriorated
rapidly as the effects of the worldwide financial crisis stemming fromthe subprime mor tgage issue inthe United States affected the real
economy on a global scale. Rapid
contraction of expor ts, which had
been a driver of economic growth,
led to generally disappointing corporate performance, and personal
consumption dropped off as theemployment situation tightened.

Amid this difficult operating environment, we pur sued Group
growth strategies based on our new
medium-term management plan,
which began in April 2008. The entire company is working in unison toachieve sustained growth driven by
global development of products andmarkets in every business segment
and to improve profitability throughthe cultivation of new business andenhancement of our capacity topropose comprehensive solutions
underpinned by cooperation withGroup companies in Japan.
During the year the company re-corded sales of ¥91,812 million,
down by 1.6% year-on-year. Operating profit fell by 46.3% to ¥5,371
million, ordinary profit declined by
49.8% to ¥5,294 million, and net income dropped by 63.7% to ¥2,214
million.
The following is an over view bybusiness division:

Sales by business division(Unit: Millions of yen)

Year ended
March 31, 2008

Year ended
March 31, 2009

ChangeApril 1, 2007, to March 31, 2008 April 1, 2008, to March 31, 2009
AmountRatio (%)

AmountRatio (%)

Amount%Information Systems

16,26617.4

19,848

21.6

3,582

22.0

Time Management Equipment

6,628

7.1

5,361

5.8

(1,267)(19.1)

Parking Systems

40,06242.9

38,96842.5(1,094)(2.7)

Subtotal

62,95667.4

64,177

69.9

1,221

1.9

Environmental Systems

20,80822.3

19,06620.8(1,742)(8.4)

Cleaning Systems

9,587

10.3

8,569

9.3

(1,018)(10.6)

Subtotal

30,395

32.6

27,63530.1(2,760)

(9.1)

Total

93,351

100.0

91,812100.0(1,539)(1.6)

Time Information System Business

Environment System Business

4Time Information Systems Business• Information Systems:
Time & attendance (T&A), Payroll,
Human-resource management,
Access control, Cafeteria management systems• Time Management Equipment:
Time recorders, Time stamps• Parking Systems
Parking lot and bicycle-parking
space management equipment,
Management services

Information Systems
Demand remains robust in the domestic market for this business, sincecompanies are reviewing and rebuilding T&A systems to enhance legal
compliance as the Ministry of Health,Labour and Welfare continues to issue
notifications and strengthen guidanceon appropriate management of working hours. Since the latter part of lastyear, however, the market environment
has changed dramatically as the sudden economic downturn has further
restricted investment, especially in the
manufacturing sector. While potential
demand is strong, orders have slowedmarkedly as customers postpone negotiations over new equipment.
In response to this market environment, Amano has focused on proposing solutions that match customer
needs, including reinforcing its marketing strategy of direct sales.
Hardware sales fell by ¥864 million(12.1%) year-on-year and software sales
declined by ¥480 million (11.2%), whilesales generated by maintenance andsupply operations rose by ¥108 million(3.5%).The reduction in hardware sales
was due to falling orders for large-scale
solutions, while the drop in softwaresales was attributable to falling demand
from medium-sized businesses. Sales in
the field of T&A systems declined by¥851 million (8.0%) and those in thefield of access control systems fell by¥187 million (12.4%).
Overseas, European sales increased
with the addition of and strong performance by newly-consolidated French
subsidiary Horosmart, S.A., acquired in
January 2008. Sales declined in North
America, but rose slightly in Asia. Total
overseas sales leapt by ¥4,758 million(up 382.6%).
As a net result of the above, overallsales in this business division totaled¥19,848 million, representing an increase of 22.0% from the previous year.

RX-100Time Management Equipment
Sales and demand in this segment
remained sluggish during the period
under review as time recorder store
sales lost ground to Internet sales
and the shift toward low-priced
equipment accelerated in the Japanese market. The deteriorating economic climate further compounded
the situation.
Unit sales and sales revenue declined year-on-year in both thedomestic and export markets. Aggregate domestic and export sales

5fell by ¥901 million (19.6%).
Over seas, revenues declined in
Nor th America, Europe, and Asia.
Overall, overseas sales were downby ¥579 million (21.0%).
As a result of the above, the time
management equipment businessdivision generated sales totaling¥5,361 million, down by 19.1% fromthe previous year.

EX-3500N

Parking Systems
Although the impact of gasoline
price hikes has lessened, the domestic parking lot market is maturing
and the business environment forthis segment remains challenging
amid falling automobile sales andreduced vehicle use.
Faced with such market conditions,the Company has stepped up effor ts to make recommendations
from the customers’ perspective on
enhancing profitability and efficiencyof parking lot management, while
also focusing on creating demand
for renewal projects, developing thepromising bicycle parking lot system
market, and cultivating the market
for specialized gate systems.
Sales of automobile and bicycle
parking system devices decreased by¥2,701 (16.0%) from a year earlier,while revenues from maintenanceand supply operations rose by ¥303
million (3.8%).

The number of parking spaces managed by Group subsidiary Amano
Management Service Corporationin its commissioned par king lot
management business increased
by 23,400 (18.2%) from March 31,
2008, and the company’s performance is making steady progress.
Overseas, North American operations achieved sales growth, steadily
improving their performance withthe help of large orders securedby Amano McGann, Inc. Europeansales slipped as vigorous demand in
the Spanish market fell away. In Asia,
although South Korea continued toshow strong results with doubledigit growth in local-currency terms,
exchange rate fluctuations resulted
in reduced revenue on a yen basis.
Overall, overseas sales rose by ¥703
million, (up 5.9%).
As a net result of the above, theparking systems business divisionachieved sales totaling ¥38,968 million, representing a decrease of 2.7%
from the previous year.

GT-6700

Environment System Business• Environmental Systems:
Standard dust collectors, Largedust collection systems, Pneumatic
powder conveyance systems,
High-temperature hazardous-gas
removal systems, Deodorization
systems, Electrolytic water generators• Cleaning Systems:
Cleaning equipment, Dr y-carecleaning systems, Cleanliness management service

Environmental Systems
The business environment in Japanremained challenging for this division
as capital investment contracted in
the face of declining capacity utilization levels associated with rapidly
deteriorating conditions in the manufacturing sector-especially in theautomobile industr y-and a freeze
on investment in new plant.
In response to this economic environment, Amano has strengthened
environmental management efforts
aimed at compliance with environmental legislation and reductionof environmental impact, and reinforced marketing strategies relating
to safety and security,
In the large-scale systems segment,
sales fell by a relatively small ¥191
million (2.5%) year-on-year, par tly
due to a backlog of orders for major projects in the early part of the
fiscal year. On the other hand, standard equipment sales dropped by¥871 million (12.4%) and revenues
from maintenance and supply operations were down by ¥414 million(9.9%).

6

In overseas operations, Japanesecompanies in China and the rest of
Asia placed fewer orders for largescale systems from the third quarteras the deteriorating economic environment impacted on their head offices in Japan. Consequently, overallsales declined by ¥72 million (5.9%).
As a result of the above, the salesof this business division fell by 8.4%
year-on-year, to ¥19,066 million.

Cleaning Systems
This business division continued to
face a difficult operating environment in Japan as companies opened
fewer new commercial facilities andstrove to reduce cleaning costs.
Increasing restrictions on capital investment also had a negative effecton the factory market.
In response to the prevailing conditions, the Company has devoted
effor ts to reigniting demand bystrengthening its sales strategies.
These effor ts include launchingproducts featuring new labor-saving,

Outlook for the Fiscal
Year Ending March 31,
2009With the global economic crisis
showing no signs of improvement
and contraction likely in the European and U.S. markets, downward
pressure will also mount in Japan as
declining exports hinder capital investment and rising unemployment
continues to constrain per sonal
consumption.

energy-saving, and cost-saving technologies, and offering cleaning contract services.
In addition to falling demand for
buffing machines, floor cleaning
equipment sales were affected by
restricted capital investment in floor
cleaning machines for factories. In
consequence, year-on-year sales
declined by ¥497 million (16.7%)
and revenues from maintenance andsupply operations were down by¥69 million (2.1%).
Over seas sales in this segment
slowed in North America, Europe,and Asia. Overall, sales decreased by¥577 million (down 22.6%).
As a result of the above, sales generated in this segment totaled ¥8,569
million, down by 10.6 % from theprevious year.

Amid this economic environment,
Amano Corporation and its groupcompanies launched a new medium-term management plan coveringa period of three years from April
2008. In line with the Group growthstrategies set out in the plan, we
will work to drive ongoing growththrough the global development ofmarkets and products in each of
our business fields and to improve
profitability by creating new business, and committing greater efforts
to address accumulation business.

The following business results areprojected for the fiscal year ending March 31, 2010: Sales ¥88,000
million, operating profit ¥4,800 million, ordinary profit ¥5,200 million,
and net income ¥2,700 million. The
above projections assume currency
exchange rates of US$1 to ¥95 and€1 to ¥125.

7

SE-840e• Net Assets
To t a l n e t a s s e t s a m o u n t e d t o¥75,395 million, down by ¥10,912
million from the previous fiscal year
end. The principal factors behind thiswere a reduction of ¥2,180 million
in retained earnings due to distribution of surpluses and changes inaccounting standards at overseas
consolidated subsidiaries, a drop of¥3,004 million due to purchase oftreasury stock, and a fall of ¥5,414
million resulting from foreign currency translation adjustments.

Analysis of Financial Condition
Analysis of Assets, Liabilities, andNet Assets• Assets
Total assets at March 31, 2009,amounted to ¥102,192 million, downby ¥14,759 million from the previous
fiscal year-end. This was chiefly due toa ¥8,098 million reduction in current
assets resulting from factors including
a ¥5,098 million drop in notes and accounts receivable, and a ¥6,661 million
reduction in fixed assets largely attributable to a ¥5,182 million decrease inintangible fixed assets and a ¥2,384
million fall in investment securities.

• Analysis of Cash Flows
Consolidated cash and cash equivalents declined by ¥483 million, or
2.8%, year-on-year, to a total of¥16,709 million at the year-end. The
following is a description of the status of each type of cash flow during
the year, and the underlying factors.

• Liabilities
Total liabilities at fiscal year-end
amounted to ¥26,797 million, downby ¥3,847 million year-on-year.
This was attributable primarily toa ¥4,233 million decrease in current liabilities resulting from factors
including a ¥3,080 million decline innotes and accounts payable and a¥1,185 million drop in accrued income taxes.

• Cash flow from operating activities
Net cash provided by operating
activities totaled ¥6,233 million,
down by 33.4% from the previous
year. Income before income taxes
totaled ¥4,723 million, deprecia-tion and amortization amounted to¥4,769 million, and trade notes andaccounts receivable decreased by¥3,576 million, while income taxes
paid totaled ¥3,597 million and accounts payable decreased by ¥2,584
million.
• Cash flow from investing activities
Net cash used in investing activitieswas ¥2,453 million, indicating an
increase of 88% over the previous
year. Although proceeds from withdrawal of time deposits amounted
to ¥4,170 million, payment for acquisition of intangible assets totaled¥2,674 million, increase in time
deposits amounted to ¥2,644 million, and payment for purchase ofproperty, plant, and equipment was¥1,925 million.
• Cash flow from financing activities
Net cash used in financing activities
totaled ¥5,693 million, indicating adecrease of 111.1%. This was chiefly
due to payment for purchase oftreasury stock amounting to ¥3,004
million and dividends paid by parent
company of ¥2,540 million.

Reference: Trend of cash flow indicators
At Mar. 31, 2005

At Mar. 31, 2006

At Mar. 31, 2007

At Mar. 31, 2008

At Mar. 31, 2009

Equity ratio (%)

72.5

74.8

74.4

73.0

72.9

Fair value equity ratio (%)

95.0

156.0

103.6

70.6

58.8

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

26.0

42.2

36.2

17.5

24.1

Interest coverage ratio

255.8

88.1

125.3

166.6

200.7

Notes: Equity ratio: Equity capital/Total assets
Fair value equity ratio: Gross market capitalization/Total assets
Ratio of cash flow to interest-bearing liabilities: Interest-bearing liabilities/Cash flow from operating activities
Interest coverage ratio: Cash flow from operating activities/Interest payments
Assumptions
1. All indicators are calculated on the basis of consolidated financial values.
2. 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).
3. Cash flow from operating activities refers to cash flow from operating activities posted under the consolidated statementsof cash flows. Interest-bearing liabilities refers to those of the liabilities stated in the consolidated balance sheets on whichinterest is paid. Interest payments equate with interest paid stated in the consolidated statements of cash flows.

5 8

Operating and Other Risk
Among the matters relating to thequalitative information contained inthese summary financial statements
and relating to the consolidated
financial statements, the following
are those that could be envisaged ashaving a possible material impact on
investors.
Matters that are considered to bepotential risk factors in the undertaking of business by the Amano
Group either now or in the future
are estimated to the greatest extent
possible, and the risk factors arethen addressed and eliminated in
the course of business activities.
Matters relating to the future arethose that are adjudged to be so asof the date of the release of thesefinancial results (May 8, 2009).
(i) Impact on earnings of changes in
the operating environment
The Amano Group uses its accumulation of unique technologies andknow-how to provide customers
with high-quality products, services
and solutions, gaining large market
shares in each sphere of business inJapan, North America, Europe, andAsia, and developing business globally.
In the year ended March 31, 2009,
the time information system business accounted for 69.9% of total
sales, and the environment systembusiness accounted for 30.1%. Be-fore deduction of unallocated expenses the time information systembusiness contributed 60.8% to operating profit, while the environment
system business contributed 39.2%.
In terms of weighted average sales
over the most recent five year s,time information system businessaccounted for 66.9% of total sales
and for 71.3% of operating profit.
With respect to future risk factors,
in each business activity within thetime information system businesssegment, which accounts for a large
proportion of the Group’s business,
if market expansion is expected forsuch reasons as a significant change
in the demand str ucture or thecreation of a new market, it can be
expected that this will attract entry
by entities in other industries orby other powerful competitors. In
that event, if a competitor were toenter with innovative products orsolutions that surpass Amano’s, theAmano Group’s market advantage
would decline, and that may have amaterial impact on its business performance.
(ii) Fluctuations in exchange rates
The Group engages in businessactivities on a global scale and has
production and sales bases overseas.
In view of this, the Group’s business results may be impacted byfluctuations in exchange rates whentransaction amounts overseas aretranslated into yen.

9(iii) Information security
In order to offer system solutions
and undertake the application service provider business, the Amano
Group handles confidential information such as personal information
concerning customers or provided
by customers. In view of this, theGroup has developed a structure
for the management of confidential
information, implements thoroughstaff training, and uses software toprevent leaks of information for the
purpose of preventing network access to confidential information andof preventing leaks of confidential
information through the removal ofdata and information. To that end it
has also established an Information
Security Management Committee
to ensure a foolproof str ucture.
Nevertheless, in the event that an
unforeseen situation were to arise,and information of the kind described above were to be disclosed
externally, resultant factors such as
loss of confidence may have a material impact on the Group’s businessperformance.

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

of Horosmar t, S.A. (France) with
Amano systems and equipment tocontinue increasing business in the
French market and using this as aspringboard to extend sales channels
across Europe as a means of expanding our business in this region.

1) Time information systems business• Parking systems business• Information systems businessAlthough the impact of gasoline
price hikes has lessened, the parking
systems business continues to face a
difficult environment as the parking
lot market matures, the trend towards
restraint in vehicle use becomes more
pronounced, and vehicle sales decline.
In this environment we will focus on
spurring demand for replacement ofexisting parking lot equipment driven
by growing use of electronic money.
We will steadily meet the needs ofexisting customers by offering addedvalue products with in-built IT functions and forging ahead with comprehensive solutions business, including
maintenance and parking lot management services. We will also increase
sales of systems equipment to meetthe market for bicycle parks that hasarisen as a result of the problem ofillegal parking of bicycles, and take further steps to expand the market for
expressway-crossing safety gates andgate systems controlling entry and exit
to and from sites such as factories.
In order to boost profitability, we will
make efforts to standardize specialorder products and strengthen profit
control for each site.
Overseas, we aim to expand businessand establish ourselves as the top
manufacturer of parking systems in
the North American market, leveraging the strengths of Amano McGann,
Inc. to further boost sales by building
closer relationships with customers.
We also aim to secure the largest

Amid continuing efforts by labor authorities to more strictly monitor unpaid overtime and long working hours(overwork) in order to eradicate
these practices, there is strong potential demand as companies establish
T&A systems aimed at appropriately
managing working hours. However,
the rapidly deteriorating economic situation is restricting capital expenditureand market conditions are worsening
week by week, with falling numbers oflarge-scale system projects and postponement of negotiations for neworders.
In this market environment, we will focus on spurring latent demand in our
T&A solutions business targeted atboth large companies and the public
sector, launching enhanced softwareand strengthening marketing structures by increasing system engineers.
We also aim to expand business inthe door security field, where theneed to protect personal information
has raised the priority placed on control of access to offices in which suchinformation is handled.
To enhance the profitability of thisbusiness we will cut costs by standardizing system software for our solutions
business and expand sales of standard
software packages to small and medium-scale business establishments, so
as to boost earnings capacity.
Overseas, we aim to merge the systems, equipment, and customer base10

market shares in Europe and Asia,
proactively expanding our global operations.
2) Environment systems business• Environment systems business
Potential demand in environment
systems business remains steady, underpinned by companies’ efforts tocomply with environment-related
laws and regulations in their plants
and to reduce the burden they placeon the environment. However, therapidly deteriorating business situation
for manufacturers-especially Japanese
automakers-is restricting capital expenditure, and uncertainty over future
market conditions is growing.
Given these circumstances, we will
strengthen our capability of developing new products with less environmental impact, launch new products
to match the reduction in size and thediversification of machine tools, andenhance our lineup of dust-explosionproof technologies to raise safety
standards. We also aim to spur latentdemand by expanding our maintenance business and further strengthen
profit control for each site in order toboost profitability.
In overseas markets, we will expand
business in Asia by building stronger
ties with overseas Group companies
in order to enhance our services toJapanese companies operating in China,Thailand, and other Asian countries.
3) Human resource development
Recognizing that people are the mostimportant management resource forthe operation of our business, wehave positioned human resource development as a priority issue and will
focus on developing employees who
have no fear of change and are willingto meet the challenges.

Business Activities

Information Systems
Strengthened products lineups with
new Time & Attendance Information
Systems released
Amano’s Time & Attendance Information Systems are used in various scenes
such as small and large businesses,
including shops regardless of locationsof the business. With diversified data
entry, ranging from IC cards - growing
use for Employee cards and ID cards, tobiometrics (finger vein identification) recent development to attract market
attention, Amano delivers an optimal
system to suite for customer’s network
environment and enhances the benefitsof customers to their individual needs.
Amano’s lineups have been reinforced
with additional new products released
to further support the Time & Attendance Information Systems already available with the best features for various
scenes. In particular, “AGX-300AV/AGX350AV” series, a “Finger Vein (Biometrics)
Identification Model” released in January
2009, has high expectations as a successor model of “AGX-30N/AGX-30V”
series, which is already receiving goodmarket acceptance. Also, “SX-100” series, released at the end of April 2009, isanother Time & Attendance Information
System designed for a low-cost model
to be used in large volume by national
accounts of service/distribution businesses.

Small/low-cost Model
SX-100 Series

Finger Vein Identification
Model AGX-350AV Series

Time Management Equipments
Strengthened sales efforts for Attendance Package Software to comply
with the new Labor Standards Act tobe effective in April 2010.
“TimePro-XG” series, “TimeAsset”“Amendment to the Labor Standards
Act” will become effective on April 1,2010 with objectives to maintain workers” health and achieve work-life balanceby seeking to limit long working hours.
The new Act is intended to increase theovertime work compensation rate andallow to take annual paid leave by thehour. Amano is providing Attendance
System “TimePro-XG” series supporting
every size of businesses / industries, andproactively strengthening the featureof the package software for expected
new and upgrading requirements tobe driven by the law amendment. Also,“TimeAssets,” an Attendance System
Application for large businesses withlarger number of employees now has
additional “SQL-Server Version” to its
basic package to manage data undercentral control. Amano continues tosupport our customers with full-lineupsof hardware, newly released models andpackage software with strong featuresand unique solutions that best meet theneeds of our customers.

セキュリティ
ソリューション

ing parking products with Time Information Systems and recommending holistic
solutions by combining time & attendance with access control management,
Amano aims at provoking new demands
to market expansion. Our new product,“Proximity IC Card Reader GT-3200M/
F”, a dedicated card reader for security
gate, combined with “TimePro-XG Access”software, is a security unit with newconcept realizing car gate access control
with real time communications. It allows
using access control system within thesame site by using one single IC card,
which realizes to build a total security
system of “vehicle” and “people”. Withabundant operational modes complying
with security levels, additional access history control of “vehicle” to factories/offices, access control of “people” to management sites is possible at the sametime to build a true security control withconsolidated data.
Exclusive for
Security Gate

ターミナル
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ICカード
ソリューション

Proximity IC Card
Reader GT-3200M/F

Amano Time & Attendance Solution Integrated System

Parking Systems

Amano Management Service Corporation, starts to seek membership forElectronic Money at parking lots

Prevents unauthorized entry to building/factory, Simultaneously manage IN/
OUT history of “Vehicle” and “People”<Dedicated Security Gate> IC Card
ReaderRecently, installation of pay stations supporting transportation electronic moneycards (“Suica*” or “PASMO*” in Tokyo
metropolitan area and “ICOCA*” inKansai area) is growing rapidly.

Amano has been providing an array of
Parking Management System, and currently is strengthening the product competitiveness with the latest technology
for a wide variety of IC cards (including
electronic money), IC tags, and ETC
radio technology to our parking systemproducts and solutions. Also, by integrat-

In an effor t to penetrate the market
with this pay station to support electronic money cards, Amano Management Service Corporation, which has fullknow-how of parking lot management
and commissioned business services has
started seeking membership for parking
lots to accept electronic money cards

11

in January 2009. An environment wherea wide variety of payment methods areavailable is expected to better serve thebenefits of parkers.

function” (patent pending), which cleans
the electrodes without using water ordetergent.

*Suica is a registered trademark of JR East Japan
Railway Company*PASMO is a registered trademark of PASMO Co.,Ltd.
*ICOCA is a registered trademark of JR West Japan
Railway Company.

Cleaning Systems

Pay Station supporting Electronic
Money

Environmental Systems
New Mist Collectors’ released one
after anotherAs part of our growth strategy of environmental business, new small size
environmental products were releasedin April 2009 one after another.
Mist collector “MJ” series is designed toremove mists with larger particles in size
coming from various machine tools including machining center. As opposed tofiltering method, a new “Cyclone & Rotating Disk” for a mist collecting method
reduces plant/operational cost since itdoes not require any labor or cost to
replace the filter. Existing electronic mistcollectors are designed to electronicallyremove oily smoke (oil mist), hazardous
substances to eyes or lungs of workers
generated from various cutting machines, with charged electrodes, which
require regular cleaning. On the contrary,
the newly released “EM-SC” series is a
carefree mist collector with “self-cleaning<Water-Saving> Automatic floor scrubbers “SE-500ss” reduces environmental
stressAmano provides a var iety of user
friendly automatic floor scr ubber sranging from walk-behind models compact/light and portable design, toride-on models for scrubbing floorsof large commercial facilities, public
transportations such as airport/stationand large warehouse/factory with large
cleaning area. Recently, “reduction ofenvironmental stress” is becoming more
impor tant when selecting a product.
A new model “SE-500ss” is the latest
design, addressing environmental aspects
with an “Air Sealing Mechanism”(patentpending) using a new cleaning watersaving technology, based on our best
seller machine “SE-500e” designed for a
hard floor scrubber. The new model reduces cleaning water to about half over
our existing “SE-500e”. Advantageous
effect of reducing the cleaning water
to half do not just save water but also
reduce disposal of collected wastewaterand detergent to reduce environmental
stress.

Current cleaner

Equipped with Self-cleaning Function
Electric Mist Collector EM-15SC

Amano Eco Technology Corporation, focusing on research and development ofapplied technology to electrolytic water,
released “α-CUTE, a Compact Electrolytic Water Generator for Handwashing”
which is the smallest/lightest in the industry and effective in preventing infection viruses such as flu and Norovirus bywashing hands in a hygienic way (Washhands by using alkaline electrolytic water
first and then acidic electrolytic waterfor 15 seconds each), and started delivery from March 2009. Electrolytic water
is generated by electrolysis of thin salt
solution, which is made by adding a small
amount of salt to tap water. Acidic electrolytic water is used for washing andsterilizing hands and endoscopes in the
medical field. In the food area, it is used
as food additives (as cleaning disinfectant
of foods) with the name Hypochlorousacid water and authorized by Ministryof Health, Labour and Welfare. Also, thealkaline electrolytic water produced at
the same time when acidic electrolytic
water generate, has an effect to degrade
and clean oil and fat content, and is used
as a new aquatic cleaner for industrial
purpose such as cleaning par ts. The“α-CUTE” designed with the conceptof “Hygiene Controls begin and end
with “Handwashing,” is expected to be
used in various “Handwashing” scenes
such as restaurants, schools, day carecenters, pet shops, senior care facilities,
company canteens and backyard (warehouse and kitchen) of grocery stores.

SE-500ss cleaner
Water-saving type
Automatic Floor
Scrubber SE-500ss

Domestic Group Companies

Filterless Mist
Collector MJ-5

now on market<Amano Eco Technology Corporation>

Electrolytic water effective in preventing
infection of influenza virus and Norovirus“α-CUTE,”a Compact Electrolytic
Water Generator for handwashing

12“α-CUTE” Compact Electrolytic Water Generator

Amano Europe Holdings, N.V.
The entry of the French work force management
solution provider HOROQUARTZ into the AMANO
group as from February 1st 2008 can be called successful. In 2009 we entered into the second phase of
the post acquisition integration plan focusing on boththe preservation of our leadership position in the
French market and on exporting the successful business model to other countries.
This geographical expansion is supported by continuous
innovation and development of the work force management suite for which a seamless integration of the several
sub-components like planning, time management, jobcosting, access control, IT security, and identity management modules is one of the key factors of success.
Profound understanding of the customers needs, in his
continuous search for optimization, but with respectof human values is essential in order to establish a longterm fruitful relationship. Indeed it is the second pillarof our successful approach.
We have been setting up strategic partnerships andintegrations with ERP vendors, system integrators and HR
solution providers. Because of our global presence wealso show the ability to handle international accounts.
In the entry level market of time recorders and smaller
time and attendance systems for mainly SME(small andmedium-sized enterprise), the traditional market segment of Amano in Europe, we launched new and innovative solutions with iTR-10, an out of the box timeand attendance terminal with embedded software,and iTime, a SaaS(Software as a Service) time and attendance solution, focusing on reducing the total costof ownership and on a service based business model.
Both solutions have proven to be a valid alternativein the low and middle end segment of the time andattendance market. Additionally these solutions offer
the basis for a seamless migration to bigger systems
whenever these needs might emerge.
Case study: International account Alstom.
The group is structured
around 2 major divisions: POWER which
provides equipment for
the energy production
and TRANSPORT whichis specialized in railway
equipment like TGV.
The group is present in 70 countries with about 60
000 employees.
In 2006 the Transport division decided to deploy the
Horoquartz solutions on all its sites over several years
to answer different needs:• Personnel identification and badge issuing with ‘Card
manager‘ solution,• Access control and visitor management with ‘Protecsys‘ solution,• Time and activity management with ‘eTemptation‘
solution.
In the mean time we have successfully installed these
WFM(Work Force Management) solutions in several
Alstom subsidiaries in North and South America, Europe and China.

Amano launched a new Parking product in Europe
In Europe, the most innovative parking market in the world,
Amano has been successfully searching to get a foothold inthat market as Amano already has in the other continents.

To succeed in Europe, Amano developed a newparking product, called Xparc, in a joint venture with
Axxteq GmbH. The product is based on a full network
solution using barcode as basic card technology. In
addition, the system is able to handle all other card
technologies as option.
The system supports a full IP integration of video andintercom, which obliges the customer to use the Xparc
system as a total management system of car parks. The
modular structure of the Software and data exchange
makes it possible to connect the
parking management system withother systems like ERP systems,
card facility systems etc.
The Software has been developed
to offer a solution for each customer in several market segments
without customization.
Xparc was launched in 2008 in the Netherlands, amarket with high requirements in the field of integration and use of video as supporting tool for managing
the car park facility.
The team in the Netherlands showed the success of
Xparc by winning 50% of the public tenders in themarket. Also the introduction in other markets like Belgium was showing a good interest in the product andchanged Amano’s image to a company with an innovative product with an exclusive design. The sales teamin Belgium achieved with this product the objective of
being back as preferred supplier of parking management systems in the Hospital and Hotel segment.
Also, the introduction in the East European market
shows Amano to be on the right track and to have a
product ready for success in the near future.

XP-7900

Amano USA Holdings, Inc.
Amano USA Holdings, Inc. continues to pursue its
goal “to achieve sustainable and profitable growth andbe the very best in our chosen markets”. This goal
requires constant innovation in the design and development of our products, and the provision of superior
service to our customers.

Amano McGann, Inc. — Parking
Continued growth in the parking division
through acquisition and consolidation
Amano McGann, Inc. (AMI) acquired ASSI Security(California) in February 2008 and merged it with its
Yorba Linda, CA support center to create a direct
sales and support business. In addition to this key acquisition, AMI integrated the parking operations of fiveother Amano businesses in Atlanta, St. Louis, Cincinnati, Connecticut and California.

Engineering milestone
AMI implemented its new hot staging operations in the Ohio
factory. This initiative has significantly improved the testingprocess as well as created a very positive image of our parking operations with Customers and consultants alike.

13

Product development
The new iParc Professional Parking Management Software was released. It provides web based reportingand parking facility management and allows owners
and operators to consolidate staffing and manage multiple facilities from a central or mobile location.
The new look AMG Lane equipment was introduced
at the International Parking Institute Show in May 2008.
The new look is highlighted with blue LED illuminatedissuing throat, stainless buttons,
new display, stainless message
plate that can be customized withfacility name, integrated proximity reader option and other
innovative enhancements to beannounced.

Success stories
AMI was awarded the contract to install and maintain the parking revenue control systems for the
Meadowlands Xanadu project, the largest retail andentertainment complex in the United States and thethird largest in the world with 4,500,000 square feetof entertainment, sports, retail, office, and hotel space.
The project calls for 120+ lanes of parking control
equipment, 50+ central pay stations, 30 fee+ fee
computers along with revenue, count, event, hotel andvalet system software and hardware components.

Other major installations include Indianapolis Airport,
Colorado Springs Airport, Mount Auburn Hospital,
Calhoun Square Expansion, University of St Thomas,
Idaho Falls Airport,
Bangor International
Airport, Water Garden
Los Angeles, the Gates
Foundation Project, Seattle Airport Marriott,and more.

Amano Cincinnati, Inc. — Time Management Solutions
Amano introduces its newest all-in-one
fingerprint Time & Attendance system
Amano Cincinnati, Inc. (ACI) released its first fingerprint Time & Attendance system, Time Guardian
FPT-40, for small to large enterprises. This time clock
system minimizes payroll, eliminates the cost of issuing
and reissuing cards and badges, while reducing manual
calculation errors. This economical biometric system
also interfaces with most common payroll applications,
thereby providing a complete turn-key solution to accurately and efficiently manage your payroll.

Amano Time Guardian receives great
market reviews
ACI was awarded the Gold Developer status for Time
Guardian’s integration with QuickBooks, possibly themost recognized small business accounting software.
Time Guardian also received a“spectacular” rating (9.0/10.0)
from QuickBooks ProAdvisor for its performance. The
ProAdvisor Program rates

compatible software solution to help clients grow theirpractice.

are used by the private sector, government institutions
and other industrial entities.

All new web-based dealer system

Amano Pioneer Eclipse — Cleaning Technologies
New product launch

ACI rolled out Phase II of its Dealer Portal to include
the ordering of brochures and customized mailers
directly online; the viewing of training schedules andevents, product releases and the list of certified technicians.

New packaging for theretail market
New packaging for its retailpartners in the United States,
Mexico and Canada were released.

Amano Cincinnati, Inc. — Security Systems
On the move

After the launch of the PowerStar Concrete and Stone
Care Division late last year, APEC presented several
new products at the World of Concrete Show toinclude the Mongrel and PowerStar CG1 Concrete
Grinders along with their line of accessories, cleanersand degreasers.

Expansion of the EnviroStar green line
The EnviroStar Green line was expanded with the addition of BrightStar, a new floor coating with improved
clarity, brightness and buff response. Also added is alow odor stripper recognized by DfE (Design for theEnvironment) program for Safer Chemistry and certified by Green Seal.

To accommodate the rapid growth in the Security
Systems business, the Florida office was relocated toa recently renovated 3,800 square feet location offering larger conference and training space, more officespace, storage space for inventory.

New product development
ACI successfully introduced the
Nexus 220 System to UnitedStates, Canadian and Latin
American markets. Nexus 220
is the next generation in access
control which bridges the gap
between small and medium access applications. The system is
produced in the United States.

Success stories
ConocoPhillips oil refinery in Texas, one of the largest
in North America, chose ACI for its Access Control
System. The installation began with the deploymentof Amano’s Digital Video Recorders for surveillance.
The system will expand to support 200 cameras alongwith the existing AmanoNet access control systemthat already includes approximately 400 proximity card
readers and 10 000 card holders.
ACI installed nearly 100 DVRs and some 1600 Amano
branded cameras located in schools and administration
facilities including approximately 37 buildings all acrossAlbany, Georgia.
Other major installations include the Capitol One
building in downtown Lake Charles, LA; EdmondPublic Schools; Huntington College; HCA Hospitals in
FL; the City of Greensboro; Youth Villages in Memphis;
First Baptist Campus in Tennessee; The State of Maine
Court System; Rockland County and Lawrence Airport; Dongara Recycling Plant in Canada.

Expansion in Latin America
ACI signed a distribution contract with International
Security & Trading (ISTC) to be one of our major distributors in Latin America. ISTC specializes in offering
complete security solutions to all of Latin and SouthAmerican as well as the Caribbean markets, offering
the latest in security technologies. Their product offerings feature over 120 of the industry’s leading manufacturers providing CCTV
Security System Equipment,
Access Control Systems,
Fire Alarm Systems, Burglar
Alarm, and Life Safety
Equipment. These systems

will open to allow it to enter. On the other hand, theexit is free to exit.
Before the system was installed, the guard had to manually identify that an entering vehicle was a contracted
vehicle, which generated a congestion during morningand evening rush hours with vehicles for picking-up/dropping-off.
By implementing this EPS system, smooth entrance
and exit became possible without any congestion.
Moreover, they were able to reduce workforce at theentrance and exit, while ensuring good security to theirgreat satisfaction.
Currently, “Singapore American School” is considering
adding a similar system to their rear gate. This school is
the largest international school in Singapore,
and we expect that
this will trigger otherinternational schools
to consider installing
similar systems to theirschool as well.
* EPS: EPS (Electric Parking System) is a ticketlessparking system based on ERP (Electric Road Pricing)hightway toll collection system in Sigapore.

Amano Malaysia Sdn. Bhd.
Business expansion and major installations
United Cleaning expanded the use of APEC machineswith the purchase of 106 SpeedStar Burnishers for installation in Loblaw Supermarkets. In addition, Loblaw
Company in Canada has agreed to gradually convert
900+ Supermarkets to an EnviroStar Green Floorcare
Program. Columbia University selected APEC EnviroStar Green Systems for 10 additional buildings.
Distributor programs for PowerStar products were
installed at 21 Sherwin Williams stores, the largest
producer of paints and coatings in the United States.
APEC also successfully started a floorcare programwith Brookshire Foods (44 Stores). Brookshire Grocery Co. has more than 150 supermarkets operating in
Texas, Louisiana, Arkansas and Mississippi.

Amano Integrated Systems
Business development & industry recognition
Amano Integrated Systems, Inc. (AIS) expanded its
product portfolio by adding Fire Systems monitoring.
A sales team member was added for the coverage of
the New York area for access and multi-space meters.
In addition, AIS was recognized by Notifier, a top
manufacturer of Fire Alarm Systems, as Best Performing Distributor for reaching $1M in sales.

Amano Time&Air Singapore Pte. Ltd.
EPS delivered to “Singapore American School”
Amano Time&Air Singapore Pte. Ltd. (ATAS) won anorder of EPS* (Electric Parking System) from “Singapore
American School” in November 2008, and delivered
the parking management system in December thesame year.
The delivered system is with one entrance and one
exit (1IN-1OUT) with separate lanes for entrance andexit. There are two EPS antennas installed at the entrance to verify that an entering vehicle is a contracted
vehicle. If it is a contracted vehicle, the entrance gate

14

Situation of Parking Lot Business
Amano Malaysia Sdn. Bhd. was established in 2005,
separating from Amano Cleantech Malaysia Sdn. Bhd.
(Specialized in sales/maintenance of environmental
products), with objectives to strengthen the salesof Parking Systems and Time Information System in
Malaysia. Amano Malaysia Sdn. Bhd. is in business ofselling Parking Equipment, Time Information Systems in
Malaysia, and expanding sales of parking equipment toareas including India and Australia.
In Southeast Asia including Malaysia, since public
transportation infrastructure is still underdeveloped,
they have no choice but to depend on private carsand motorcycles for transportation, which makes earlymorning and evening commuter jam very common. It
is not unusual that many large parking lots have over
1,000 spaces in Malaysia to accommodate a large number of commuter/shopper vehicles.
Albeit presence of many European manufacturers, local
manufacturers as well as many other parking operationcompanies in this dynamic competitive market, Amano
receives high recognition for our high performance,
good quality and stability and we are steadily growing
in market shares by delivering systems that accept
membership cards and parking fees tied to large
shopping malls in Malaysia and Australia. We werealso successful in airport projects both in New Deliand Mumbai in India, where it is recently developing
rapidly. With the number of registered vehicles in the
Asian markets sure
to increase, it isexpected that themarket will further
expand with growing demand forparking equipment.

AMANO Corporation and Subsidiaries

Financial Highlights
For the years ended March 31, 2009 and 2008.

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

Thousands of U.S.
dollars (Note 5)

Millions of Yen

2009

2008

2009

Net Sales ..........................................................

¥91,812¥93,351$936,857

Net Income .......................................................

2,214

6,104

22,592

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

¥28.14¥75.96$0.287

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

30.00

34.00

0.306

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

¥102,192¥116,951$1,042,776

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

32,45636,321

331,184

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

75,39586,307769,337

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

¥19,848¥16,266$202,530

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

5,361

6,628

54,704

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

38,96840,062397,633

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

19,06620,808

194,551

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

8,569

9,587

87,439For the years ended March 31:

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

At March 31:

Sales by product:

Note: U.S.dollar amounts have been translated at the rate of ¥98 = US $1, the rate prevailing on March 31, 2009.
-See Note 5 to the Consolidated Financial Statements.

Net Sales

Net Income(Millions of Yen)

(Millions of Yen)

1000007000

Net Income Per Share
(Yen)

80
70

90000

6000
80000

60
5000

70000

50
60000

4000
40

50000

3000

40000
30000

30

2000

20

20000

1000

10

10000
0

'05

'06

'07

'08

'09

0

'05

'06

15

'07

'08

'09

0

'05

'06

'07

'08

'09

AMANO Corporation and Subsidiaries

Consolidated Balance Sheets
As at March 31, 2009 and 2008.

Millions of Yen

ASSETS

Thousands of U.S.
dollars (Note 5)

2009

2008

2009

¥18,720
1,192¥20,545
1,000$191,020
12,16323,651(199)
23,452
6,485
1,313
1,478
52,64028,749(150)
28,599
7,825
1,377
1,392
60,738241,337(2,031)
239,306
66,173
13,39815,083537,143

Land .................................................................
Construction in progress ....................................
Total property, plant and equipment ..............

26,187
19,156810
46,153(31,720)
14,433
7,156
1,258
22,847

26,52819,880–46,408(31,121)
15,2876,582
183
22,052

267,214
195,470
8,265
470,949(323,673)
147,276
73,02012,837233,133

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

7,402
4,357
1,145
632
13,536

12,637
4,512
1,443
126
18,71875,53144,459
11,684
6,448
138,122

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

1,177
3,347
1,099
2,599
5,402
(455）
13,169

962
5,947
1,064
2,232
5,705
(467)
15,44312,01034,154
11,214
26,52055,123(4,643)
134,378¥116,951$1,042,776

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

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

¥102,192

The accompanying notes are an integral part of these statements.
16

Thousands of U.S.
dollars (Note 5)

Millions of Yen

LIABILITIES AND NET ASSETS

2009

2008

2009

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

¥44
174
8,960
4,983
688
5,335
20,184¥191–
12,040
4,974
1,873
5,339
24,417$449
1,776
91,42950,8477,020
54,438205,959

Long-term liabilities:
Accrued retirement benefits to employees ...........
Long-term accounts payable ..............................
Lease obligations ...............................................
Accrued retirement benefits to directors and corporate auditors ...
Deferred tax liabilities........................................
Other long-term liabilities ..................................
Total long-term liabilities ...............................

4,208
932
719
–
394
360
6,613

4,372
–
–
715
726
414
6,227

42,939
9,510
7,337
–
4,020
3,674
67,48018,240–19,56747,045–
18,24019,56749,225

186,122–
199,663
480,052(3,715)
81,137(711)
86,321(37,908)
827,929(304)(6,370)(6,674)

66
(956)
(890)

(3,102)(65,000)(68,102)

Minority interests in consolidated subsidiaries ....

932

876

9,510

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

75,39586,307769,337

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

¥102,192¥116,951$1,042,776

Net assets:
Shareholders' equity:
Common Stock
Authorized- 185,476,000 shares
Issued:March 31, 2009 - 81, 257, 829 shares ............
March 31, 2008 - 81, 257, 829 shares ............
Capital surplus ..............................................
Retained earnings .........................................
Treasury stock at cost, 4,656,810 shares in 2009
and 866,647 shares in 2008 ...........................

Valuation and translation adjustments
Net unrealized gains (losses) on other securities ....
Foreign currency translation adjustments ........

The accompanying notes are an integral part of these statements.
17

AMANO Corporation and Subsidiaries

Consolidated Statements of Income
For the years ended March 31, 2009 and 2008.
Thousands of U.S.
dollars (Note 5)

Millions of Yen

2009

2008

2009

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

¥91,812¥93,351$936,857

Cost of sales................................................................

51,61753,348526,704

Gross profit ...................................................

40,19540,003

410,153

Selling, general and administrative expenses ..............

34,82429,992355,347

Operating income ..........................................

5,371

10,01154,806

Interest and dividend income .............................

310

332

3,163

Interest expense ................................................

(38)

(58)

(388)

Equity in earnings of affiliates ............................

62

47

633

Foreign exchange losses ....................................

(655)

–

(6,684)Gain on abolishment of retirement benefit plan...

281

–

2,867

Gain on sale of fixed assets ................................

13

15

133

Loss on disposal of fixed assets ..........................

(132)

(175)

(1,347)

Loss on sale of fixed assets ................................

(9)

(12)

(92)

Gain on sale of investments in securities ............

13

–

133

Loss on sale of investments in securities .............

(44)

–

(449)

Loss on sale of investments in consolidated subsidiaries

–

(93)

–

Loss on write-down of investments in securities.....

(576)

(30)

(5,877)

Other, net .........................................................

127

91

1,296

Income before income taxes and minority interests....

4,723

10,12848,194Current .............................................................

2,264

4,007

23,102

Deferred ...........................................................

78

(151)

796

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

2,381

6,272

24,296

(167)

(168)

(1,704)¥2,214¥6,104$22,592

Other income ( expenses ) :Income taxes :Minority interests in net income of consolidated subsidiaries
Net income

Yen

U.S. dollars (Note 5)

Net income per share, basic .........................................

¥28.14¥75.96$0.287

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

30.00

34.00

0.306

The accompanying notes are an integral part of these statements.

18

AMANO Corporation and Subsidiaries

Consolidated Statements of Net Assets
For the year ended March 31, 2009.
Millions of yen
Shareholders’ equity
Common stock

Capital surplus

Retained earnings

Treasury stock

Balance at March 3l, 2008
Changes during the year
Dividends from surplus
Net income
Purchase of treasury stock
Reduction in retained earnings due to change in accounting policies applied to foreign subsidiaries
Reduction in retained earnings from merger of consolidated andnonconsolidated subsidiaries
Net changes in items other than shareholders’ equity
Total changes during the year

¥18,240¥19,567¥49,225(¥711)

Total shareholders’equity¥86,321(3,004)(2,715)2,214(3,004)––(2,180)(3,004)(5,184)

Balance at March 3l, 2009¥18,240¥19,567¥47,045(¥3,715)¥81,137

Balance at March 3l, 2008
Changes during the year
Dividends from surplus
Net income
Purchase of treasury stock
Reduction in retained earnings due to change in accounting policies applied to foreign subsidiaries
Reduction in retained earnings from merger of consolidated andnonconsolidated subsidiaries
Net changes in items other than shareholders’ equity
Total changes during the year
Balance at March 3l, 2009

(2,715)2,214(1,642)(1,642)

(37)

(37)

Valuation and translation adjustments
Net unrealized Foreign currency Total valuation andMinority interests Total net assets
gains(losses) on
translationtranslation
other securities
adjustments
adjustments¥66(¥956)(¥890)¥876¥86,307(2,715)2,214(3,004)(1,642)
(37)
(370)
(370)

(5,414)(5,414)(5,784)(5,784)56
56(5,728)(10,912)(¥304)(¥6,370)(¥6,674)¥932¥75,395

Thousands of U.S. dollars (Note 5)
Shareholders’ equity
Total shareholders’equity$880,826

Common stock

Capital surplus

Retained earnings

Treasury stock

Balance at March 31, 2008
Changes during the year
Dividends from surplus
Net income
Purchase of treasury stock
Reduction in retained earnings due to change in accounting policies applied to foreign subsidiaries
Reduction in retained earnings from merger of consolidated andnonconsolidated subsidiaries
Net changes in items other than shareholders’ equity
Total changes during the year

$186,122$199,663$502,296($7,255)–−(22,244)(30,653)(52,897)

Balance at March 31, 2009

$186,122$199,663$480,052($37,908)$827,929

Balance at March 31, 2008
Changes during the year
Dividends from surplus
Net income
Purchase of treasury stock
Reduction in retained earnings due to change in accounting policies applied to foreign subsidiaries
Reduction in retained earnings from merger of consolidated andnonconsolidated subsidiaries
Net changes in items other than shareholders' equity
Total changes during the year
Balance at March 31, 2009

(27,704)(27,704)

22,592(30,653)

22,592(30,653)(16,755)(16,755)

(377)

(377)

Valuation and translation adjustments
Net unrealized Foreign currency Total valuation andMinority interests Total net assets
gains(losses) on
translationtranslation
other securities
adjustments
adjustments$673($9,755)($9,082)$8,939$880,683(27,704)
22,592(30,653)(16,755)(377)(3,775)(3,775)(55,245)(55,245)(59,020)(59,020)571
571(58,449)(111,346)($3,102)($65,000)($68,102)$9,510$769,337

19

AMANO Corporation and Subsidiaries

Consolidated Statements of Cash Flows
For the years ended March 31, 2009 and 2008.
Millions of Yen

Thousands of U.S.
dollars (Note 5)

2009

2008

2009

¥4,723¥10,128$48,194

4,769
860
(142)
(19)
(310)
(62)
38
62
31
576
–
(4)
132
3,576
627
(2,584)(2,771)
9,502
359
(31)
(3,597)
6,233

3,914
–
103
83
(332)
(47)
58
57
–
–
93
(3)
175
(1,511)
1,341
46
(498)
13,607390(56)(4,579)9,362

48,6638,775(1,449)(194)(3,163)
(633)
388
633
316
5,878
–
(41)
1,347
36,490
6,398(26,367)(28,276)
96,9593,663(316)(36,704)
63,602

Cash Flows from Investing Activities:
Payment for purchase of marketable securities ..................
Proceeds from redemption of marketable securities ...........
Payment for purchase of property and equipment .............
Proceeds from sale of property and equipment ..................
Payment for acquisition of intangible assets ......................
Payment for acquisition of investments in securities ..........
Proceeds from sale of investments in securities .................
Proceeds from redemption of investments in securities ..........
Payment for acquisition of investments in subsidiaries ................
Increase in time deposits..................................................
Decrease in time deposits.................................................
Loans to third parties.......................................................
Acquisition of operation...................................................
Collection of loans ...........................................................
Others ............................................................................
Net cash used in investing activities .............................

(2,192)2,000(1,925)39(2,674)(1,823)79
2,500–(2,644)
4,170
(2)
(282)
7
294
(2,453)(2,000)1,000(3,204)
1,125(2,513)(2,084)–1,000(12,169)(5,708)
5,356
(104)
(561)
4
(559)
(20,417)(22,367)
20,408(19,643)398(27,286)(18,602)806
25,510–(26,980)
42,551(20)(2,877)71
3,000(25,031)

Cash Flows from Financing Activities:
Proceeds from short-term bank loans................................
Repayment for short-term bank loans ...............................
Proceeds from long-term debt ..........................................
Repayment for long-term debt ..........................................
Payment for acquisition of treasury stock .........................
Proceeds from sale of treasury stock .................................
Repayments of finance lease obligations ...........................
Dividends paid ................................................................
Dividends payment to minority interests ...........................
Net cash used in financing activities.............................

3
(3)
95
(142)
(3,004)–(79)(2,540)(23)(5,693)

–
(18)
341
(489)
(6)
136
–
(2,643)(18)(2,697)

31
(31)
969
(1,449)(30,653)–(806)(25,918)(235)(58,092)

1,423
(490)
17,192

254(13,498)
30,69014,521(5,000)175,429

7¥16,709–¥17,19271$170,500

Cash Flows from Operating Activities:
Income before income taxes ............................................
Adjustments to reconcile income before income taxes andminority interests to net cash provided by operating activities:
Depreciation and amortization ...................................
Amortization of goodwill ...........................................
Increase (decrease) in provision for accrued retirement benefits
Increase (decrease) in allowance for doubtful accounts ...........
Interest and dividend revenue....................................
Equity in earning of affiliates .....................................
Interest expenses ......................................................
Foreign currency translation (gain) loss......................
Loss on sale of investments in securities ....................
Loss on write-down of investments in securities .........
Loss on sale of investments in consolidated subsidiaries ..............
Gain on sale of fixed assets........................................
Loss on disposal of fixed assets..................................
(Increase) decrease in trade notes and accounts receivable ..............
(Increase) decrease in inventories ..............................
Increase (decrease) in trade notes and accounts payable .....
Others ......................................................................
Subtotal ....................................................................
Interest and dividends received..................................
Interest paid .............................................................
Income taxes paid .....................................................
Net cash provided by operating 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 .......................
Increase in cash and cash equivalents resulting from merger ofconsolidated subsidiary and unconsolidated subsidiary .............................
Cash and cash equivalents at end of year ................................
The accompanying notes are an integral part of these statements.

20

AMANO Corporation and Subsidiaries

Notes to the Consolidated Financial Statements
For the years ended March 31, 2009 and 2008.

1. Basis of Consolidated
Financial Statements

2. Principles of Consolidation(1) Scope of Consolidation

The accompanying consolidated
financial statements of AMANO
Corporation [hereinafter called "theCompany"] and its subsidiaries havebeen prepared in accordance with theprovisions set forth in the Japanese Financial Instruments and Exchange Act
and its related accounting regulationsin Japan. The accounts of the Company and domestic subsidiaries includedin the consolidation are based on theaccounting records maintained in accordance with accounting principles
generally accepted in Japan, which
are different in certain respects as tothe application and the disclosure requirements of International Financial
Reporting Standards.
The information in the consolidated

The Company had 27 subsidiaries at
March 31, 2009; The accompanying
consolidated financial statements include the accounts of the Company
and those of its subsidiaries that arecontrolled by the Company. Under thecontrol concept, major subsidiaries inwhich the Company is able to exercise
control over operations are to be fully
consolidated.
The accounts of the overseas consolidated subsidiaries are prepared on thebasis of a December 31 fiscal year-end,
and are consolidated accordingly with
the Company at March 31, 2009 and2008, and for the years then ended.
The consolidated subsidiaries thathave been consolidated with the Company for the year ended March 31,
2009 are as follows:

financial statements is derived fromthe original text, scope, and the natureof that information, and is therefore
limited to that contained in the original text. However, certain reclassifications or summarizations of accounts
have been made to present the consolidated financial statements in a form
which is more familiar to the readers
outside Japan.

Company Name

EquityPaid In Capitalownership (Thousands)%

1) Amano USA Holdings, Inc.
100% US$ 111,702
2) Amano Cincinnati, Inc.
100% US$ 23,172
3) Amano Cincinnati Canada, Inc.
100%
C$ 4394) Amano Integrated Systems, Inc.
100%
US$ 4,349
5) Amano McGann, Inc.
100% US$ 46,418
6) Amano Pioneer Eclipse Corp.
100%
US$ 4,606
7) Amano Europe Holdings N.V.
100% EUR 72,094
8) Amano Europe N.V.
100% EUR 17,850
9) Horosmart S.A.
100% EUR 16,000
10) Horoquartz S.A.
100% EUR 20,000

2111) Horoquartz Marocco S.A.
100%
DH 20012) Pial Technologies S.A.
100%
EUR 650
13) Scopus-Omnibadges S.A.S. *67%
EUR 820*Scopus S.A. and Omnibadges
S.A. merged into a single entity,
Scopus-Omnibadges S.A.S. on
January 1, 2009.
14) Amano Malaysia Sdn.Bhd.
100%
MR 2,500
15) Amano Cleantech Malaysia Sdn.Bhd.
60%
MR 20016)ATAS E & C Services(M) Sdn. Bhd.
100%
MR 15017)Amano Time & Air Singapore Pte. Ltd.
100%
S$700
18)PT. Amano Indonesia
100% lDR 1,928,000
19)Amano Thai International Co., Ltd.
43% THB 8,000
20)Amano International Trading (Shanghai)Co., Ltd.
100%
US$20021)Amano Korea Corp.
100% W 2,800,000
22)Amano Agency Corp.
44%¥10,000
23)Environmental Technology Company
100%¥20,000
24)Amano Management Service Corp.
73%¥205,00025)Amano Maintenance Engineering Corp.
65%¥30,000
26)Amano Business Solutions Corp.
97%¥300,000
27)Amano Musashi Electric Corp.
100%¥10,000
Note: Investment in Parkinsys
Technology Co., Ltd., a Taiwanese company, over which theCompany has the ability to exercise significant influence (theCompany owns 36.7 percent) is
accounted for using the equity
method.

(2) Accounting for investments
in unconsolidated subsidiaries and affiliates
None of the 9 unconsolidated subsidiaries and 1 affiliate are accounted forby the equity method, because the effect of their net income or losses andretained earnings on the accompanying Consolidated Financial Statements
are immaterial.

(3) Consolidation and Elimination
For the purpose of preparing theconsolidated financial statements, allsignificant intercompany transactions,account balances, and unrealized profits among the group companies havebeen eliminated from the consolidated
financial statements. Intercompany
profit included in the assets sold fromthe Company to the consolidated subsidiaries has been entirely eliminatedand charged against the consolidated
earnings of the group companies.
Intercompany profit included in theassets sold from the consolidated
subsidiaries to the Company has been
entirely eliminated and the portion applicable to minority interests has been
charged against them.

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

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

(3) Property, Plant and Equipment
Property, plant and equipment arestated at cost, less accumulated depreciation. Depreciation is computed on
the declining balance method, except
for buildings acquired from April 1,
1998, computed on the straight -line
method based on the estimated useful
lives. The ranges of the useful lives ofassets are :Buildings
7-50 years
Machinery and equipment 7-17 years
Cost of property, plant and equipment, retired or otherwise disposed of,and related accumulated depreciation,is eliminated from the respective accounts, and the resulting gain or loss
is reflected in income during the applicable period. Normal repairs andmaintenance, including minor renewals and improvements, are charged toincome as incurred.
* Supplementary explanation:
Accompanying revisions in Japan's
income tax law, the Company and its
domestic consolidated subsidiaries
have reviewed and changed the useful
lives of their machinery this fiscal
year. As a result, operating income
and income before income taxes
for the year ended March 31, 2009
decreased by ¥111 million.

(4) Intangible Assets
Intangible assets are amortized using
the straight-line method. Software
costs for internal use are amortized by
the straight-line method over their expected useful lives (five years). Goodwill is amortized over the estimateduseful life, or where the amount of
goodwill is immaterial, is charged toincome in the year of acquisition.

(5) Lease Assets
Lease assets in finance lease transactions not involving transfer of ownership are depreciated by the straightline method over the term of the lease,with a residual value of zero. Financelease transactions not involving transfer of ownership made prior to the beginning of the first year of applicationof the revised Accounting Standard
for Lease Transaction have been accounted for using the method applied
to rental transactions.

22(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 theperiod in which they arise.
(b) Securities
Securities held by the Company and its
subsidiaries are classified into four categories;
Trading securities, which are held
for the purpose of generating profits
on short-term differences in prices,
are stated at their fair values, withchanges in fair values included in net
profit or loss for the period in which
they arise. Additionally, securities
held in trusts for trading purposes areaccounted for in the same manner as
trading securities.
Held-to-maturity debt securities, that
the Company and its subsidiaries haveintent to hold to maturity, are statedat their costs after accounting forpremium 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 arestated at cost 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 losseson these securities are reported as aseparate item in the net assets at a netof-tax amount.
Other securities for which market quotations are unavailable are stated atcost, except as stated in the paragraphbelow.
In cases where the fair value of heldto-maturity debt securities, equity

securities issued by unconsolidated
subsidiaries and affiliates, or other securities had declined significantly andsuch impairment of the value is notdeemed temporary, those securities
are written down to the fair value andthe resulting losses are included in net
profit or loss for the period.

(7) Appraisal of the Assets andLiabilities of Consolidated
Subsidiaries
The assets and liabilities of subsidiaries are accounted for the partial mark-(10) Income Taxes
The Company recognizes tax effectof temporary differences between the
carrying amounts and the tax basis ofassets and liabilities. The provision
for income taxes is computed basedon the pretax income included in the
consolidated statements of income.
The asset and liability approach isused to recognize deferred tax assets
and liabilities for the expected future
tax consequences of temporary differences.

(13) Accrued Directors’ Retirement Benefits
In order to provide for payment of
retirement benefits to directors, theCompany had reserved funds for theamount payable at the fiscal year-end
in accordance with in-house rules for

to-market accounting method.

(11) Allowance for Doubtful
Accounts(8) Foreign Currency Translation

In general, the Company and its subsidiaries provide the allowance basedon the past receivables loss experience for a certain reference period.
Furthermore, for receivables withfinancial difficulty which could affectthe debtors' ability to perform their
obligations, the allowance is provided
for estimated unrecoverable amounts
individually.

Foreign currency transactions aretranslated using foreign exchange rates
prevailing at the respective transaction dates. Receivables and payables
in foreign currencies are translated at
the foreign exchange rates prevailingat the respective balance sheet dates
and the resulting transaction gains orlosses are taken into income currently.

defined contribution pension scheme,
applying Accounting for Transfer between Retirement Benefit Plans (ASBJ
Guidance No.1). A gain of ¥281 million relating to this shift was bookedas other income.

directors’ retirement benefits, but theordinary general meeting of shareholders held on June 27, 2008, resolved
to abolish the directors’ retirement
benefits scheme effective from that
date. In conjunction with the abolition of this system, it was decided
to pay out the portion of directors’
retirement benefits accrued up to the
day of the ordinary general meeting ofshareholders. These payments shall bemade at the time each director retires(9) 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
prescribed by the Business Accounting Deliberation Council of Japan.
All items are translated at the rate ofexchange prevailing at the respectivebalance sheet date, except common
stock and capital surplus, which aretranslated at historical exchange rates.
Differences arising from translation
are presented as “Foreign currencytranslation adjustments” and “Minority
interests” in the accompanying consolidated financial statements.

(12) Accrued Retirement Benefits
to Employees

and shall fully dispose of the reserve

The Company and some of its Japanese subsidiaries recognize accrued
pension and severance costs to employees based on the actuarial valuation of projected benefit obligationand plan assets at fair value. Prior service costs are amortized based on thestraight-line method over a period often 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.

term accounts payable of ¥318 million*Supplementary explanation:

Basic net income per share is computed based on the weighted average
number of shares of common stock
outstanding during each period. Diluted net income per share is computed
based on the net income available for

On March 1, 2009, the Company
abolished its tax-qualified pension
plan and retirement lump-sum grantsystem, and shifted to a defined benefit corporate pension scheme and a23

funds. These costs are booked as longunder long-term liabilities and othercurrent liabilities of ¥343 million under current liabilities.

(14) Research andDevelopment Expenses
Research and development expenses
are charged to income as incurred.

(15) Net Income and Dividends
per Sharedistribution to the shareholders and theweighted-average number of shares ofcommon stock outstanding during eachyear after giving effect to the dilutive
potential of shares of common stock
to be issued upon the exercise of stock
subscription rights and stock options.
Cash dividends per share shown foreach fiscal period in the accompanying
consolidated statements of income represent actual dividends declared as applicable to the respective fiscal period.

4. Changes in Accounting Policy

million compared with the former de-(2) Application of AccountingStandards for Measurement of Inventories(4) Application of Practical
Solution on Unificationof Accounting Policies
Applied to Foreign Subsidiaries for Consolidated
Financial Statements

As a result of applying the Accounting

From this fiscal year the Company

Standards for Measurement of Inven-has adopted the Practical Solution on

tories (ASBJ Statement No. 9 issued

Unification of Accounting Policies Ap-

July 5, 2006), from this fiscal year theplied to Foreign Subsidiaries for Con-valuation method has changed fromsolidated Financial Statements (ASBJ

cost basis to cost basis (write-down

Practical Issues Task Force No. 18, is-due to reduced profitability). This

sued on May 17, 2006) and made thechange has no impact on profits.

necessary revisions to its consolidated

preciation method.

financial statements.

(1) Depreciation of Property,
Plant and Equipment
The Company applied a revised depreciation method of fixed assets, one ofJapanese tax system revisions, which
was effective from April 1, 2007. As aresult, operating income, and income
before income taxes for the year ended
March 31, 2008 decreased by ¥204 million*.

*Supplementary explanation:
The negative impact by applying thisrevised depreciation method to the following fixed assets are as follows:(i) The negative impact on the fixed assets acquired during the fiscal year beginning on April 1, 2007 is ¥87 million
compared with the former depreciation
method.
(ii) Property, plant and equipment
acquired before March 31, 2007 are depreciated using the former method. As
the net residual value after depreciation reaches 5% of the acquisition cost,
the difference between the amountequivalent to 5% of the acquisition
cost and the memorandum value isamortized on a straight-line basis over
five years from the following fiscal year
and included in depreciation expense.
The negative impact on the fixed assets(3) Accounting Standard forLease Transactions

As a result, compared to the method

The Company accounted for financecreased by ¥83 million, operatinglease transactions not involving trans-

income declined by ¥821 million, andfer of ownership using a method ap-

income before income taxes dropped

plied to rental transactions, howeverby ¥1,146 million. Retained earnings

from this fiscal year the Company

at the beginning of the fiscal year de-books them as regular sales transac-

creased by ¥1,642 million.

previously used, gross profit de-tions, due to application of the Accounting Standard for Lease Transac-

5. United States Dollar Amounts

tions (ASBJ Statement No. 13, issued
June 17, 1993, by the First Committee

The Company maintains its account-of the Business Accounting Council,

ing records in Japanese yen. The

and revised March 30, 2007) and the

U.S. dollar amounts included in the

Implementation Guidance on Ac-

consolidated financial statements andcounting Standard for Lease Transac-

notes thereto represent the arithmeti-

tions (ASBJ Guidance No. 16, issued

cal results of translating Japanese yen

January 18, 1994 by the Accounting

to U.S. dollars at a rate of ¥98=US $1,

Systems Committee of the Japanese

the approximate effective rate of ex-

Institute of Certified Public Accoun-change prevailing on March 31, 2009.

tants and revised March 30, 2007).

The inclusion of U.S. dollar amounts

Note that finance lease transactions

is solely for the convenience of read-

not involving transfer of ownershipers outside Japan and is not intended

made prior to the beginning of theto imply that yen amounts could befirst year of application of the revised

converted, realized, or settled in U.S.

Accounting Standard for Lease Trans-

dollars at that, or any other rate.

actions have been accounted for using
the method applied to rental transactions.
This change has no impact on profits.

acquired before March 31, 2007 is ¥117

24

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

Cash and bank deposits
Time deposits due overthree months
Cash and cash equivalents

Millions of Yen
2009
2008
¥18,720¥20,545(2,011)¥16,709(3,353)¥17,192

Thousands of U.S.dollars ( Note 5 )2009$191,020(20,520)$170,500

7. Inventories
Inventories as of March 31, 2009 and 2008, consisted of the following:

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

Millions of Yen
2009
2008
¥2,988¥3,945
540
824
2,957
3,056
¥6,485¥7,825

Thousands of U.S.dollars ( Note 5 )2009$30,490
5,510
30,173$66,173

8. Selling, General, and Administrative Expenses
Selling, general, and administrative expenses during the years ended March 31, 2009 and 2008 include principally:

Labor and payroll
Rental for properties
Travel and transportation

Millions of Yen
2009
2008
SGA
SGA
¥14,252¥12,667
1,789
1,470
1,307
985

Thousands of U.S.dollars ( Note 5 )2009
SGA$145,429
18,255
13,337

9. Provisions
Provisions charged to operation during the years ended March 31, 2009 and 2008 are mainly as follows:

Employees’ bonuses
Directors’ bonuses
Retirement benefits
Allowance for doubtful accounts

Millions of Yen
2009
2008
¥1,108¥1,277
5
45
1,251
1,086
164
139

25

Thousands of U.S.dollars ( Note 5 )2009$11,30651
12,7651,673

10. Leases Commitments
Finance lease transactions not involving transfer of ownership using a method applied to rental transactions are summarized asfollows:
Minimum future lease payments under finance leases, which includes the imputed interest expense portion are summarized as follows:

Due within one year
Due over one year
Total

Millions of Yen
2009
2008
¥483
¥627
595
1,045
¥1,078¥1,672Thousands of U.S.dollars ( Note 5 )2009$4,9296,071$11,000

Lease payments on finance lease contracts without transfer of ownership for the years ended March 31, 2009 and 2008 were¥628 ($6,408) and ¥612, respectively.
Acquisition cost, accumulated depreciation, net book value and depreciation expenses for the year ended March 31, 2009 and2008, if capitalized, are summarized as follows:

Acquisition cost
Accumulated depreciation
Net book value
Depreciation

Millions of Yen
2009
2008
¥3,346¥4,1782,267
2,506¥1,079¥1,672¥628

Thousands of U.S.dollars ( Note 5 )2009$34,143
23,133$11,010¥612

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

26$6,408

11. Securities
Held-to-maturity and Other securities with readily determinable fair value as of March 31, 2009 and 2008, are as follows:

Other securities with book carrying
amount exceeding acquisition cost
StocksSubtotal
Other securities with book carrying
amount not exceeding acquisition cost
Stocks
Bonds
Other
Subtotal
Total

Acquisition
cost

Millions of Yen
2009Market value(Carrying value)

Unrealized
gains (losses)

¥223
223

¥294
294

¥71
71

2,523
50
500
3,073

1,952
40
499
2,491

(571)
(10)
(1)
(582)

¥3,296¥2,785¥(511)

Millions of Yen
2008

Held-to-maturity
Other securities with book carrying
amount exceeding acquisition cost
StocksOther
Subtotal
Other securities with book carrying
amount not exceeding acquisition cost
StocksOther
Subtotal
Total

Acquisition
cost
¥500

Market value(Carrying value)¥500

Unrealized
gains (losses)–¥1,27521
1,296¥1,618
30
1,648

¥343
9
352

1,475
1,500
2,975

1,270
1,488
2,758

(205)
(12)
(217)

¥4,271¥4,406¥135

Thousands of U.S.dollars (Note 5)2009
Acquisition
Market value
Unrealized
cost(Carrying value) gains (losses)
Other securities with book carrying
amount exceeding acquisition cost
StocksSubtotal
Other securities with book carrying
amount not exceeding acquisition cost
Stocks
Bonds
Other
Subtotal
Total

27$2,2762,276$3,000
3,000

$724
724

25,745510
5,102
31,357

19,918408
5,092
25,418(5,827)(102)(10)(5,939)$33,633$28,418$(5,215)

12. Retirement Benefits
Outline of the retirement benefit plans adopted(1) Defined benefit corporate pension scheme : From March 1, 2009, the Company adopted a defined benefit corporate pension
scheme as part of its retirement benefit plan.
(2) Defined contribution pension scheme: From March 1, 2009, the Company adopted a defined contribution pension scheme as partof its retirement benefit plan.
(3) Employees’ pension fund: Since April 1, 1980, the Company has used employees’ pension fund plan (comprehensive establishmenttype) as supplement to its existing retirement benefit scheme. As of March 31, 2009, the total pension assets of the pension fundincluded ¥10,270 million of pension assets computed on the basis of the total proportion of the contribution.
On March 1, 2009, the Company abolished its tax-qualified pension plan and retirement lump-sum grant system, and shifted to adefined benefit corporate pension scheme and a defined contribution pension scheme.
The components of accrued retirement benefits to employees as of March 31, 2009 and 2008 are as follows:

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

Millions of Yen
2009
2008
¥10,333¥13,761(4,751)(8,310)5,582
5,451(1,411)(1,079)–36¥4,207¥4,372Thousands of U.S.
dollars ( Note 5 )2009$105,439(48,480)
56,959(14,398)368$42,929

The components of retirement benefit expenses for the years ended March 31, 2009 and 2008 are as follows:

Service cost
Interest cost
Expected return on plan assets
Amortization of unrecognized prior service cost
Amortization of unrecognized actuarial loss
Contribution to the multi-employer pension plan
Other*Net retirement benefit expenses
Gain associated with transfer to defined contribution pension scheme
Total

Millions of Yen
2009
2008
¥822
¥809
327
341
(279)
(328)
–
0
233
140
522
509
–
93
¥1,718¥1,471Thousands of U.S.
dollars ( Note 5 )2009$8,387
3,337(2,847)
0
2,378
5,327
949
$17,531(281)–(2,868)¥1,437¥1,471$14,663* Contribution paid to defined contribution pension scheme.
The assumptions used for calculation of retirement benefits for the years ended March 31, 2009 and 2008 are as follows:

Method of attribution of estimated retirement
benefits to periods of employee service
Discount rate
Expected return on plan assets
Amortization period for unrecognized priorservice cost
Amortization period for unrecognized actuarial difference

2009

2008

Straight-line method

Straight-line method

2.5%
3.5%

2.5%
3.5%

10 years–

10 years

10 years28

13. Deferred Tax
Deferred tax assets and liabilities (both current and non-current) consisted of the following elements:

Millions of Yen
2009
2008

Thousands of
U.S.dollars (Note 5)2009

Deferred tax assets:
Accrued enterprise tax

¥16

¥172

$163

Accrued employees' bonuses

676

785

6,898

Accounts payable and long-term accounts payable

269

–

2,745

–

295

–

1,698

1,747

17,327

Loss carried forward

445

184

4,541

Loss on write-down of investments in securities

233

89

2,378

Allowance for doubtful accounts

116

113

1,184

Unrealized loss on other securities

208

–

2,122

Others

815

645

8,316

Less: valuation allowance

(504)

(325)

(5,143)

Total deferred tax assets¥3,972¥3,705$40,531

(20)

(21)

(204)

–

(45)

–

Acquired intangible assets

(335)

(620)

(3,419)Others

(99)

(136)

(1,010)

(454)

(822)

(4,633)¥3,518¥2,883$35,898

Accrued retirement benefits to directors and corporate auditors
Accrued retirement benefits to employees

Deferred tax liabilities:
Reserve for advanced depreciation of building
Unrealized gain on other securities

Total deferred tax liabilities
Net deferred tax assets
Reconciliation of actual tax rate is shown below:
Effective statutory tax rate

40.6%

40.6%

Entertainment and other nondeductible expenses

0.7

0.7

Dividend and other nontaxable income

(0.9)

(0.3)

Inhabitant tax on per capita levy

1.6

0.7

Nondeductible amortization of goodwill

6.1–

Realization of tax benefits on operating losses

(0.3)

(1.8)

Tax credit for research and development expenses

(1.9)

(1.7)

Valuation allowance

4.8

0.4

Adjustments:

OthersActual tax rate

29

(1.1)

(0.5)

49.6%

38.1%

14. Segment Information(1) Industry Segments
The Companies operate primarily in the following two businesses:
1. Time information
2. Environmental equipment
Millions of Yen
2009Time Information Environment
Total
Eliminations/Corporate Consolidated Total
Net Sales:
Customers
Intersegment
Total
Operating Expenses
Operating Income¥64,177–
64,17759,200¥4,977¥27,635–
27,63524,422¥3,213¥91,812–91,812
83,622¥8,190–––¥2,819¥(2,819)¥91,812–91,81286,441¥5,371

AssetsDepreciation
Capital expenditures¥43,738
3,727
5,680

¥22,829620
827¥66,567
4,347
6,507

¥35,625422
177¥102,192
4,769
6,684

Millions of Yen
2008
Time Information Environment
Total
Eliminations/Corporate Consolidated Total
Net Sales:
Customers
Intersegment
Total
Operating Expenses
Operating Income¥62,956–
62,95654,318¥8,638¥30,395–
30,395
26,154¥4,241¥93,351–
93,35180,472¥12,879–––¥2,868¥(2,868)¥93,351–
93,351
83,340¥10,011

AssetsDepreciation
Capital expenditures¥50,599
2,897
3,834

¥18,744595
1,782¥69,343
3,492
5,616

¥47,608
422
202¥116,951
3,914
5,818

Thousands of U.S. dollars (Note 5)2009
Time Information Environment
Total
Eliminations/Corporate Consolidated Total
Net Sales:
Customers
Intersegment
Total
Operating Expenses
Operating Income$654,867–
654,867
604,082$50,785$281,990–
281,990249,204$32,786$936,857–
936,857
853,286$83,571–––$28,765$(28,765)$936,857–
936,857
882,051$54,806

AssetsDepreciation
Capital expenditures$446,306
38,031
57,959$232,949
6,326
8,439

$679,255
44,357
66,398$363,521
4,306
1,806

$1,042,776
48,663
68,20430

(2) Geographic Segments
Information by geographic areas based on location for the years ended and as of March 31, 2009 and 2008 issummarized as follows:

Domestic(in Japan)

Asia

Millions of Yen
2009
Overseas
Total
North America Europe

Net Sales:
Customers
Intersegment
Total
Operating Expenses
Operating Income¥67,823
1,956
69,77962,441¥7,338¥4,490
42
4,532
4,116
¥416

¥13,034
244
13,27812,817¥461¥6,465
59
6,524
6,720
¥(196)¥91,8122,301
94,11386,094¥8,019–¥(2,301)(2,301)347¥(2,648)¥91,812–91,81286,441¥5,371

Assets¥52,745¥3,664¥10,834¥9,824¥77,067¥25,125¥102,192

Eliminations/ Consolidated
Corporate
Total

Millions of Yen
2008
Domestic(in Japan)

Asia

Overseas
North America

EuropeNet Sales:
Customers
Intersegment
Total
Operating Expenses
Operating Income¥73,594
2,372
75,96664,247¥11,719¥4,973
72
5,045
4,514
¥531

¥12,852515
13,367
12,734¥633¥1,932
104
2,036
1,979
¥57

¥93,351
3,063
96,414
83,474¥12,940–¥(3,063)(3,063)(134)¥(2,929)¥93,351–
93,351
83,340¥10,011

Assets¥55,805¥4,782¥15,011¥7,424¥83,022¥33,929¥116,951

Domestic(in Japan)

Asia

Thousands of U.S. dollars (Note 5)2009
Overseas
Eliminations/ Consolidated
Total
Corporate
Total
North America Europe

Net Sales:
Customers
Intersegment
Total
Operating Expenses
Operating Income$692,072
19,959712,031
637,153$74,878$45,816429
46,24542,000$4,245$133,000
2,490
135,490
130,786$4,704$65,969 $936,857
602
23,48066,571
960,337
68,571
878,510$(2,000) $81,827–$(23,480)(23,480)
3,541$(27,021)$936,857–
936,857
882,051$54,806

Assets$538,214$37,388$110,551$100,245$256,378$1,042,776

31

Total

$786,398

Eliminations/ Consolidated
Corporate
Total

(3) Overseas Sales
Overseas sales for the years ended March 31, 2009 and 2008 are summarized as follows:

Millions of Yen
2009
2008
Overseas sales
Asia
North America
EuropeOthersTotal¥4,795
13,047
6,544
231¥24,617¥5,43012,8682,029
275¥20,602

Percentage of overseas sales
to consolidated net sales

26.8%

22.1%

Thousands of U.S.dollars (Note 5)2009$48,929
133,133
66,7752,357$251,194

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

15. Per Share Data
Net assets and net income per share as of and for the years ended March 31, 2009 and 2008:
Yen
Amounts per share
Net assets
Net income:
Basic
DilutedU.S.dollars (Note 5)
2009

2009

2008

¥972.08¥1,062.70$9.919

28.14
–

75.96
75.94

0.287
–

32

Corporate Data
Board of Directors

Domestic Operations

Overseas Operations

President/CEO

HEAD OFFICE

Kaoru Haruta

275 Mamedocho, Kohoku-ku, Yokohama,
Kanagawa, JAPAN 222-8558

1. AMANO USA HOLDINGS,INC.
CORPORATE HEADQUARTERS

Senior Executive Directors

Yoshinori Mizushima
Haruhiko Yamaguchi
Executive Directors

Toshio Kusanagi
Minoru Koyama
Toshiaki Imura
Nobuyuki Tabata
Izumi Nakajima
Seiken Uyama
Director

Hiroshi Shiraishi
Auditors

Keizo Ueno
Kazuo Unno
Satoru Ueno
Yasutaka Hishiyama
Operating Officers

Masamiki Konno
Naoki Nakata
Bungo Nogawa
Kenji Kohori
Kengo Iida
Yoshio Kishi
Toru Ueno
Koichi HashimotoTakeshi Akagi
Yutaka Kaneko

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

FACILITIESYOKOHAMA Facility
TSUKUI Facility
HOSOE Facility
MIYAKODA Facility
SALES OFFICES

81 Sales Offices Located in major cities,
includingTOKYO Office
YOKOHAMA Office
NAGOYA Office
OSAKA Office
SAPPORO Office
SENDAI Office
OMIYA Office
NAGANO Office
NIIGATA Office
HAMAMATSU Office
KANAZAWA Office
KYOTO Office
OKAYAMA Office
HIROSHIMA Office
TAKAMATSU Office
FUKUOKA Office
SYSTEM CENTERSTOKYO System Center
KANAGAWA System Center
NAGOYA System Center
OSAKA System Center
SENDAI System Center
SAPPORO System Center
OMIYA System Center
SHINJUKU System Center
SHINAGAWA System Center
TACHIKAWA System Center
SHIZUOKA System Center
NAGANO System Center
NIIGATA System Center
KANAZAWA System Center
HIROSHIMA System Center
TAKAMATSU System Center
FUKUOKA System Center
DOMESTIC SUBSIDIARIESAMANO BUSINESS SOLUTIONS CORPORATIONENVIRONMENTAL TECHNOLOGY CO., LTD.
AMANO MANAGEMENT SERVICECORPORATIONAMANO MAINTENANCE ENGINEERINGCORPORATIONAMANO ECO TECHNOLOGY CORPORATIONAMANO MUSASHI ELECTRIC CORPORATIONAMANO TIME BUSINESS CORPORATIONAMANO AGENCY CORPORATION

33

2. AMANO CINCINNATI,INC.
HEAD OFFICE

140 Harrison Avenue Roseland, New
Jersey 07068-1239 U.S.A.
3. AMANO CINCINNATI,INC.
OHIO FACTORY

130 Commerce Blvd. Loveland, Ohio
45140-7726 U.S.A.
4. AMANO CINCINNATI CANADA INC.

2740 Matheson Blvd. East, Unit 4
Mississauga, Ontario, Canada L4W 4X3
5. AMANO PIONEER ECLIPSE CORPORATION

1 Eclipse Road, Sparta, North Carolina
28675-0909 U.S.A.
6. AMANO INTEGRATED SYSTEMS, INC.

8 Capital Drive, Wallingford, Connecticut, 06492, U.S.A.
7. AMANO McGANN, INC.
HEAD OFFICE

651 Taft Street NE, Minneapolis,
Minnesota 55413 U.S.A.
8. AMANO EUROPE HOLDINGS, N.V.
CORPORATE HEADQUARTERS

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

Westerring 2, 3600 Genk, Belgium
10. AMANO TIME&PARKING SPAIN S.A.

C/. Plom, N°5-7, 2°-2a - 08038
Barcelona - Espana
11. HOROSMART, S.A.
CORPORATE HEADQUARTERS

Tour CIT, 3 rue de l'Arrivée 75015 Paris,
France12. HOROQUARTZ, S.A.
HEAD OFFICE

Tour CIT, 3 rue de l'Arrivée 75015 Paris,
France13. HOROQUARTZ MAROC, S.A.

67, Bd Al Massira Al
Khadra Mâarif 20100 Casablanca,
Kingdom of Morocco
14. SCOPUS-OMNIBADGES, S.A.S

65 rue Racine 92120 Montrouge, France
15. PIAL TECHNOLOGIES, S.A.

ZI route de Niort BP 251 85205
Fontenay-le-Comte, France

22. AMANO MALAYSIA SDN.BHD.

16. AMANO KOREA CORPORATIONHEAD OFFICE

No.12, Jalan Pengacara U1/48, Temasya
Industrial Park 40150 Shah Alam, Selangor Darul Ehsan, Malaysia

150-103 Woolim E-Biz Center2,4F-407,
Yangpyeong-Dong 3Ga-16,
Yeongdeungpo-Gu,Seoul,Korea

23. ATAS E&C SERVICES (M) SDN.BHD.
17. @PARK KOREA CO.,LTD.

No.12, Jalan Pengacara U1/48, Temasya
Industrial Park 40150 Shah Alam, Selangor Darul Ehsan, Malaysia

150-103 Woolim E-Biz Center2,4F-408,
Yangpyeong-Dong 3Ga-16,
Yeongdeungpo-Gu,Seoul,Korea

24. AMANO TIME&AIR SINGAPORE PTE.LTD.

18. TIME STAMP SOLUTION CORPORATION

NO.1 Jalan Kilang Timor #02-01 Pacific
Tech Centre Singapore 159303#411, Woolim E-BIZ Center,
Yangpyeong-dong 3Ga-16,
Yeongdeungpo-gu, Seoul, Korea

25. PT.AMANO INDONESIA

Gedung Pusat Perfilman H.Usmar
Ismail,Lantai3 JL.H.R.Rasuna Said Kav.
C-22 Jakarta 12940 Indonesia

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

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

26. AMANO THAI INTERNATIONAL CO.,LTD.

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

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

14F Nextage Business Center, No.1111
Pudong Road(South), Pudong New Area,
Shanghai, China 200120
21. AMANO CLEANTECH MALAYSIA SDN.BHD.
HEAD OFFICE

No.12, Jalan Pengacara U1/48, Temasya
Industrial Park 40150 Shah Alam, Selangor Darul Ehsan, Malaysia

8,9

11,12,13,15

4

7

10

3
16,17,18

13

AMANO CORPORATION

19,20

26
21,22,23
24
25

34

5

1,2,6

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

CAT-114800
K9406Y12-2009.6