FINANCIAL REPORT
April 2023 - March 2024

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

2. Our Medium-long Term Business Strategy
Amano launched the "9th Medium-Term Business Plan" for the three-year period from April
2023 to March 2026, and has revised the numerical targets in consideration of the businessresults of the current period.
The details of the plan are posted on the Amano's website.
(https://www.amano.co.jp/en/ir/managementpolicy/plan/)[1] Basic policies
In the "9th Medium-Term Business Plan", we have set "The 4th Stage Towards a 100-year Company - Commitment to Paradigm Shift Leading to Sustainable Management" as our management concept.
Starting as a hardware manufacturer, we have grown as a company that provides total solutions including services such as software, cloud services, and consigned businesses, etc., in response to changing market needs and technological innovation. To further develop this trend,
we will promote DX (digital transformation) in each business field and execute strategic investments in software-based assets, IoT, AI, etc. In addition, we will improve customer convenience by enhancing the functions of standard products and further enhance our competitive
advantage in terms of profitability. Furthermore, we will develop and expand our management
infrastructure and work to solve social issues such as maximizing the value of human capitaland reducing environmental impacts.
Under this policy, we will expand our business performance based on the three growth drivers, aiming to achieve sales of ¥168,000 million, operating profit of ¥23,000 million, operating
profit margin (OPR) of 13%, and ROE of 12% in the fiscal year ending March 31, 2026, thefinal year of this plan.
Expansion of business performance based on the three growth drivers in the "9th MediumTerm Business Plan.".
(i) Information Systems: Software plus cloud services(ii) Parking Systems: Proposals centric to the Data center for Systems and Management Services(iii) Clean Systems: Robot plus cloud service proposals[2] Numerical targets(Major assumptions of the numerical targets)(i)	Information Systems Business at non-consolidated Amano is expected to see continued
investment in systems by various companies, including those in industries that are exempt
from the "Work Style Reform Law" and in the public and education sectors. In addition,
Parking Systems Business is expected to post record-high performance due to full-scale
expansion of renewal investment, which had been settled by the Coronavirus Pandemic,
as well as support for new banknotes. Environmental Systems Business is expected to growmainly due to investment in large-scale systems for rechargeable batteries for EVs, etc.,
while Clean Systems Business is expected to achieve significant earnings growth due to expanded sales of cleaning robots.
(ii)	The domestic and overseas parking lot management service business will further drive the
Amano Group overall performance as a growth driver.
(iii)	Amano-McGann, Inc. in North America, whose performance is on the way to recovery,plans to further improve profitability through new products and restructuring of the sales
structure.
1

(Millions of yen)

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

FY 2023
FY 2024
FY 2024
FY 2025
FY 2025(year ended March 2024) (year ending March 2025) (year ending March 2025) (year ending March 2026) (year ending March 2026)(Results)(Original Plan)(Revised)(Original Plan)(Revised)
Amount YoY (%) Amount YoY (%) Amount YoY (%) Amount YoY (%) Amount YoY (%)
152,86415.1 150,000(1.9) 160,000
4.7 160,000
6.7 168,000
5.0
19,56723.9
19,500(0.3)
21,0007.3
21,0007.7
23,000
9.5
12.8%
–
13.0%
–
13.1%
–
13.1%
–
13.7%
–
20,85523.0
20,500(1.7)
22,0005.5
22,0007.3
24,0009.1
13,141

16.4

13,5002.7

14,50010.3

14,5007.4

15,500

6.9

3. Basic Policy on Distribution of Profits and Payment of Dividends for This Fiscal Yearand the Next
Amano places great importance on our policy of paying dividends to shareholders. Our fundamental policy to return profits to shareholders is to make appropriate performance-based distributions and to acquire treasury stock, as it deems necessary. We aim to maintain a dividend
payout ratio of at least 40% on a consolidated basis, a net asset dividend rate of at least 2.5%,
and a total return ratio of at least 55%.
In line with this policy, taking into account our current-year operations results, the year-end
dividend for the fiscal year ending March 31, 2024, is ¥95 per share, and the annual per-share
dividened for this fiscal year is ¥135 (including ¥40 per share paid as the interim dividend), an
increase of ¥25 from the annual per share dividend of ¥110 for the previous fiscal year.
In addition, the Board of Directors approved a resolution regarding the acquisition of treasury
stock on April 25, 2024. The detail of this matter is available for inspection on the Amano’s
website.
(https://www.amano.co.jp/en/ir/dl/news/2024/20240425_2.pdf).
As a result, the consolidated payout ratio was 74.5%, the net asset dividend rate was 7.9%,
and the total return ratio was 89.7%.
With regard to the dividend for the next fiscal year ending March 31, 2025, in line with our"Basic Policy on Distribution of Profits" and in view of our outlook for the next fiscal year, wecurrently aim to pay an annual per share dividend of ¥140 (with an interim dividend of ¥45
and a year-end dividend of ¥95).
Retained earnings will be earmarked to fund effective investment aimed at the fundamental
enhancement of the capacity to conduct our business operations. This will include the expansion and strengthening of existing business fields, strategic investment in growth fields, andspending on research and development, as well as the rationalization of production plants andequipment for the purpose of reducing costs and further improving product quality, etc.

Manabu Yamazaki
President andRepresentative Director2Summary of Business Results
Business Results in the Year Ended March 31, 2024

Summary of Business Results forThis Fiscal Year
During the consolidated fiscal year
under review, the Japanese economy
is considered to be on a moderate
recovery trend as economic activities
continue to normalize, although theoutlook of the Japanese economy isridden by uncertainties such as overseas economic slowdown, extensive
price hikes, and exchange rate volatility.
Under this business environment,in our ”9th Medium-Term Business
Plan" that started in April 2023, we,
the Amano Group, have set forth
the management concept of "The4th Stage Towards a 100-year Company-Initiatives for a Paradigm Shift
Leading to Sustainable Management"
in which we have promoted DX(digital transformation) in each business field and have executed strategic investments in software-based
assets, IoT, AI, etc., and further enhance our competitive advantage interms of profitability. Furthermore,
we have proactively worked to solve
social issues.
As a result, during the fiscal year
under review, Amano recorded

net sales of ¥152,864 million, up by
15.1% year-on-year. Operating profit
increased by 23.9% to ¥19,567 million, ordinary profit went up by
23.0% to ¥20,855 million, and net
income attributable to owners of
the parent company increased by
16.4% to ¥13,141 million, resulting inincreases in both sales and profit.
(Main factors behind the businessresults)( i )	A t non-consolidated Amano,
Parking Systems sales continued
to significantly grow indicating that the recovery trend isclearly positive. Clean Systems
sales also continued to increase
due to stronger sales of cleaning robots. Information Systems
sales increased in both softwareand hardware. Environmental
Systems sales of standard dust
collection systems declined dueto the impact of lower orders
for machine tools, but large-scale
systems sales grew in response
to demand for rechargeable batteries for EVs, etc., resulting positive overall sales.
(ii)	In d o m e s t i c g ro u p c o m p a nies, the consigned parking lot
management service businessperformed well, exceeding preCOVID-19 results, and the cloudservice business for T&A also

continued to grow. The digitaltime stamp business continued toperform well, meeting the needs
to respond to the requirements
under the revised Elec tronic
Books Preservation Act, etc.
(iii)	In overseas markets, sales inc re a s e d i n N o r t h A m e r i c a ,Europe, and Asia, partly due tothe effect of yen depreciation.
In Europe, sales of Information
Systems in France continued
to grow by capturing customer
needs. In North America, Parking Systems sales increased dueto the effect of new products,
achieving a monthly surplus during demand periods, etc. with an
improving earnings trend, while
Clean Systems sales decreased
due to a slowdown in the corewood floor sanding business. In
Asia, Parking Systems sales grewin South Korea and Hong Kong,and Environmental Systems sales
grew in Thailand.
(iv)	As a result of evaluating the future excess earning power of a
portion of the investment securities held by Amano as of fiscal
year end, a loss on valuation of
investment securities was bookedin accordance with impairment
accounting.

The following is a breakdown of sales by business division.

Sales by business division
Category
Time Information System business:
Information Systems
Time Management Products
Parking Systems
Subtotal
Environment System business:
Environmental Systems
Clean Systems
Subtotal
Total(Millions of yen)

FY2022
FY2023(April 1, 2022–March 31, 2023) (April 1, 2023–March 31, 2024)
Amount Ratio (%) Amount Ratio (%)

ChangeAmount%31,3532,841
64,70898,903

23.6
2.1
48.7
74.4

35,757
2,572
78,510116,840

23.4
1.7
51.3
76.4

4,403
(268)
13,801
17,936

14.0
(9.5)
21.3
18.1

20,83813,06833,906
132,810

15.7
9.9
25.6
100.0

23,08912,93536,024
152,864

15.1
8.5
23.6
100.0

2,250
(133)
2,117
20,054

10.8
(1.0)
6.2
15.1

3

Time Information System business
The sales in this business totaled¥116,840 million, up by ¥17,936 million (up 18.1%) year-on-year. The
following is a breakdown of sales bybusiness division.

Information Systems¥35,757 million (up 14.0% year-on-year)

Domestic sales for the current
term were as follows. For nonconsolidated Amano, software sales
increased by ¥809 million (8.2%)
due to a continuing recovery trend
in orders for small to medium-sizedbusinesses, hardware sales increasedby ¥451 million (16.8%), and sales
generated by maintenance contracts
and supplies services decreased by¥33 million (0.7%) year-on-year. The
cloud services developed by Amano
Business Solutions Corporation continued to perform strongly.
Overall overseas sales increasedby ¥3,024 million (23.1%), as both
Accu-Time Systems, Inc. in North
America and Horoquartz S.A. in Europe sales increased.

Time Management Products¥2,572 million (down 9.5% year-on-year)

Overall domestic sales for the current term decreased by ¥51 million(2.2%) year-on-year as the sales ofstandard time recorders and PClinked time recorders decreased.
Overall overseas sales decreasedby ¥176 million (23.8%) as sales inNorth America and Asia decreased.

Parking Systems(51.9%), while sales generated bymaintenance contracts and supplies
services remained flat year-on-year.

Domestic sales for the current term
were as follows. For non-consolidated Amano, domestic parking lot
management systems sales continued to increase by ¥2,925 million(21.2%) due to a recovery trend,
while sales generated by maintenance contracts and supplies services
increased by ¥1,600 million (16.6%).
Sales continued to increase in theconsigned parking lot management
service business operated by Amano
Management Service. As a result of
the continued investment by them,
the number of parking spaces undermanagement increased by 27,000(3.9%) from the end of the previous
fiscal year.

Overall overseas sales increased by¥122 million (3.2%) as sales in Asia
increased due to a recovery in mainly Thailand.

¥78,510 million (up 21.3% year-on-year)

Overall overseas sales increased by¥9,190 million (31.2%) due to theincrease in the sales of Amano McGann, Inc. in North America and theincrease in sales of the consigned
parking lot management service business in South Korea and Hong Kongin Asia.

Clean Systems¥12,935 million (down 1.0% year-on-year)

During the current term for nonconsolidated Amano, overall domestic sales of cleaning equipment
increased by ¥378 million (17.4%)
due to increase in sales of robotic
floor scrubbers, and domestic sales
generated by maintenance contracts
and supplies services increased by¥22 million (1.1%) year-on-year.
Overall overseas sales decreased by¥560 million (7.0%) as Amano Pioneer Eclipse Corporation in North
America saw the decline in sales.

Summary of Financial Condition for This Fiscal Year

Environment System business(i) Assets, liabilities, and net assets

The sales in this business totaled¥36,024 million, up by ¥2,117 million(up 6.2%) year-on-year. The following is a breakdown of sales by business division.

Total assets amounted to ¥184,585
million (up ¥13,334 million from theprevious consolidated fiscal yearend).

Environmental Systems¥23,089 million (up 10.8% year-on-year)

During the current term for nonconsolidated Amano, domes tic
sales of standard dust collectors decreased by ¥455 million (6.1%). On
the other hand, sales of large-scale
systems increased by ¥2,518 million

4• C urrent assets: an increase of¥7,142 million due to increases
in notes and accounts receivabletrade and contract assets, andmerchandise and finished goods,etc.
• Fixed assets: an increase of ¥6,191
million due to increases in leaseassets (net), and investment securities, etc.

Total liabilities amounted to ¥56,482
million (up ¥6,869 million from theprevious consolidated fiscal yearend).
• Current liabilities: an increase of¥6,776 million due to an increasein lease obligations, etc.
• Long-term liabilities: an increase of¥93 million due to an increase inlease obligations, etc.
Net assets amounted to ¥128,103
million (up ¥6,464 million from theprevious consolidated fiscal yearend).
• Shareholders' equity: an increaseof ¥728 million due to posting of
net income attributable to ownersof the parent company, etc.
• A ccumulated other comprehensive income: an increase of ¥6,116
million due to increases in foreign
currency translation adjustments,
etc.

Summary of Cash Flows forThis Fiscal Year
Consolidated cash and cash equivalents decreased by ¥3,435 million
from the previous fiscal year-end
to a total of ¥51,648 million as ofMarch 31, 2024. The status of eachtype of cash flow at year-end andthe underlying factors are as follows.
Net cash provided by operating activities totaled ¥23,771 million (anincrease in income of ¥4,820 million
year-on-year).
• Main income factors:
Posting of income before income
taxes amounting to ¥19,032 million and posting of depreciation
and amortization amounting to¥10,256 million.

• Main expenditure factors:
Posting of income taxes paid
amounting to ¥6,089 million andposting of increase in trade notes
and accounts receivable and contract assets amounting to ¥4,110
million.
Net cash used in investing activities
totaled −¥10,221 million (an increasein cash outflow of ¥2,845 million
year-on-year).
• Main income factors:
Posting of proceeds from withdrawal of time deposits amounting
to ¥10,856 million.
• Main expenditure factors:
Posting of increase in time deposits
amounting to ¥13,530 million andposting of payment for purchaseof tangible fixed assets amounting
to ¥3,417 million.
Posting of payment for acquisitionof intangible fixed assets amounting to ¥2,439 million and posting of payment for acquisition ofsubsidiary shares involving change
to the scope of consolidation
amounting to ¥1,809 million.
Net cash used in financing activities
amounted to −¥18,216 million (anincrease in cash outflow of ¥4,265
million year-on-year).
• Main income factors:
Posting of proceeds from sale andleaseback amounting to ¥1,732
million.
• Main expenditure factors:
Posting of dividends paid amounting to ¥8,764 million and postingof repayments of lease obligations
amounting to ¥6,785 million.
Posting of payment for acquisitionof treasury stock amounting to¥3,719 million.

5

Future Outlook
With regard to the outlook for theJapanese economy in the next fiscal
year, although there are uncertainties
in the economic outlook due to suchconcerns about recession overseas,heightened geopolitical risks, and theimpact of various price hikes andchanges in monetary policy, etc., theeconomy is expected to continue on
a gradual recovery path, backed bystrong corporate appetite for capital
investment.
Amid this business environment,
Amano and our group companies
have set "The 4th Stage Towards a
100-year Company-Commitment toa Paradigm Shift Leading to Sustainable Management" as our management concept and work to address
key issues in the ”9th Medium-TermBusiness Plan”.
The details of the Plan are available
for inspection on the Amano’s website.

AMANO Corporation and Subsidiaries

Financial Highlights
For the year ended March 31, 2024
Yen in millions and U.S. dollars in thousands, except per share amounts- See Note 5 to the Consolidated Financial Statements.
Millions of Yen

Thousands of U.S.dollars

2023

2024

2024

Net sales¥132,810¥152,864$1,009,670

Net income

11,28813,14186,797¥154.42¥182.48$1.205110.00135.000.892

For the years ended March 31:

Per share data (Yen and U.S. Dollars):
Net income per share (Basic)
Cash dividends per common share
At March 31:¥171,250¥184,585$1,219,188

Working capital

75,23675,603499,359

Total net assets

121,638

128,103

846,123¥31,353¥35,757$236,176

Time Management Products

2,841

2,572

16,988Parking Systems

64,70878,510518,560

Environmental Systems

20,83823,089152,503

Clean Systems

13,06812,93585,436

Total assets

Sales by product:
Information Systems

Note:U.S. dollar amounts have been translated at the rate of \151.40= US $1, the rate prevailing on March 31, 2024.
- See Note 5 to the Consolidated Financial Statements.

Net Sales

Net Income

Net Income Per Share(Millions of Yen)

(Millions of Yen)

(Yen)

16000014000

200.0014000012000

180.00160.0012000010000

140.00100000120.00

8000

80000

100.00
6000

60000

60.00

4000

40000

40.00
2000

20000
0

80.00

'20

'21

'22

'23

'24

0

20.00

'20

'21

'22

6

'23

'24

0

'20

'21

'22

'23

'24

AMANO Corporation and Subsidiaries

Consolidated Financial Statements
As at March 31, 2024

Consolidated Balance Sheet

Thousands of
U.S.dollars

Millions of Yen
Notes

2023

2024

2024

Cash and bank deposits

17 and 19¥62,399¥62,577$413,322

Notes and accounts receivable—trade and contract assets

7 and 8,19

30,95836,038238,032

Marketable securities

17 and 19

3,357

2,725

17,999

4,663

5,672

37,464

791

916

6,050

AssetsCurrent assets

Merchandise and finished goods
Work in process
Raw materials and supplies

7,956

8,601

56,810

Other current assets

4,112

4,753

31,394

Allowance for doubtful accounts
Total current assets

(491)

(393)

(2,596)

113,749

120,892

798,494

Fixed assets
Tangible fixed assets
Buildings and structures
Accumulated depreciation

29,01629,355

193,890(20,419)(20,985)(138,606)

8,597

8,369

55,277

7,807

7,993

52,794

Accumulated depreciation(6,914)(7,031)(46,440)

Machinery and vehicles (net)

892

961

6,347

Buildings and structures (net)
Machinery and vehicles

Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures (net)16,704

17,670116,711(14,422)(14,980)(98,943)

2,281

2,689

17,761

5,846

5,743

37,933

19,14923,094

152,536

Accumulated depreciation(7,995)(10,490)(69,287)

Lease assets (net)

11,153

12,603

83,243Land
Lease assets

18

Construction in progress

364

728

4,808

Total tangible fixed assets

29,13531,096205,390

Goodwill

1,214

1,884

12,444

Software

3,194

3,241

21,407

702

1,421

9,386

Other

1,729

2,196

14,505

Total intangible fixed assets

6,840

8,742

57,741

14,974

16,764

110,727

458

471

3,111

1,661

1,872

12,365Intangible fixed assets

Software in progress

Investments and other assets
Investment securities

6 and 19

Claims in bankruptcy and similar claims
Fixed leasehold deposits

115

142

938

2,591

2,071

13,679

Other

2,194

3,007

19,861

Allowance for doubtful accounts

(470)

(476)

(3,144)

Net defined benefit assets
Deferred tax assets

21

Total investments and other assets
Total fixed assets
Total assets

7

21,52523,853

157,550

57,501

63,693

420,694¥171,250¥184,585$1,219,188

Consolidated Balance Sheet

Thousands of
U.S.dollars

Millions of Yen
2023

2024

2024

¥6,138¥6,979$46,096

6,284

6,533

43,151

266

94

621

Lease liabilities

4,150

5,407

35,713

Accrued income taxes

3,523

4,100

27,081

Accrued bonuses

2,766

2,973

19,637

130

200

1,321

15,252

19,001

125,50238,51345,289299,135
55,192

Notes
Liabilities
Current liabilities
Notes and accounts payable—trade
Electronically recorded obligations

19

Short-term bank loans

Accrued officers' bonuses
Other current liabilities
Total current liabilities
Long-term liabilities

7,791

8,356

Deferred tax liabilities

21

16

23

152

Net defined benefit liabilities

20

2,281

1,721

11,367

Lease liabilities

Provision for stock benefit

357

407

2,688

Provision for directors' stock benefit

249

315

2,081

Asset retirement obligations

34

35

231

367

332

2,193

Other long-term liabilities
Total long-term liabilities
Total liabilities
Net assets

11,098

11,19273,92349,61256,482373,065

120,469

16

Shareholders' equity
Common stock

18,23918,239

Capital surplus

19,293

19,293

127,431

Retained earnings

90,133

94,510624,240

Treasury stock(9,019)(12,668)(83,672)

Total shareholders' equity

118,646

119,374

788,468

2,237

4,740

31,30821,486

Accumulated other comprehensive income
Net unrealized gains (losses) on available- for-sale securities
Foreign currency translation adjustments

248

3,253

Remeasurements of defined benefit plans

(375)

231

1,526

Total accumulated other comprehensive income

2,109

8,226

54,333

882

502

3,316

Non-controlling shareholders' interests
Total net assets
Total liabilities and net assets

8

121,638

128,103

846,123¥171,250¥184,585$1,219,188

AMANO Corporation and Subsidiaries

Consolidated Statement of Income, andConsolidated Statement of Comprehensive Income
For the year ended March 31, 2024

Consolidated Statement of Income

Thousands of
U.S.dollars

Millions of Yen
2023¥132,810
72,55560,2542024¥152,864
83,916
68,9482024$1,009,670
554,267
455,403

40,551
3,916
44,467
15,78745,2004,180
49,38019,567

298,547
27,609326,156
129,240

265
245
161
70
48
172
440
1,405

706
288
114
35
47
184
310
1,686

4,663
1,902
753
231
310
1,215
2,048
11,136151
80
232
16,960284
113
398
20,855

1,876
746
2,629
137,748

12

11
11

8
8

53
53

13
14

58
1
11
150
–
220
16,752
5,584
(186)
5,397
11,35465¥11,288

72
35
–
1,713
9
1,831
19,032
6,608
(837)
5,771
13,261
119¥13,141476
231–
11,31459
12,094
125,70743,646(5,528)
38,11887,589786$86,797

Notes
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Selling expenses
General and administrative expenses
Total selling, general and administrative expenses
Operating profit
Non-operating profit
Interest income
Dividend income
Insurance dividend income
Insurance income
Foreign exchange gains
Equity in earnings of affiliates
Other
Total non-operating profit
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of fixed assets
Total extraordinary income
Extraordinary losses
Loss on disposal of fixed assets
Loss on sale of fixed assets
Office transfer expenses
Loss on valuation of investment securities
Other
Total extraordinary losses
Income before income taxes
Income taxes
Deferred income taxes
Total income taxes
Net income
Net income attributable to non-controlling shareholders
Net income attributable to owners of the parent company

1021

Consolidated Statement of Comprehensive Income

Thousands of
U.S.dollars

Millions of Yen

Net income
Other comprehensive income
Net unrealized gains (losses) on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Share of other comprehensive income of associates accounted forthe using equity method"
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of the parent company
Comprehensive income attributable to non-controlling shareholders

92023¥11,3542024¥13,2612024$87,589

150
3,583
174

2,498
3,036
607

16,49920,053
4,009

0

0

0

3,907
15,262

6,142
19,40340,568128,157

15,109¥152

19,257¥146

127,193$964

AMANO Corporation and Subsidiaries

Consolidated Statement of Changes in Net Assets
For the year ended March 31, 2024
Fiscal Year ended March 31, 2023 (April 1, 2022 to March 31, 2023)
Millions of Yen
Shareholders' equity
Common stock

Capital surplus

Balance at the beginning of period
Changes during period
Dividends of surplus
Profit attributable to owners of parent company
Purchase of treasury shares
Disposal of treasury shares
Net changes in items other than shareholders' equity
Total changes during period¥18,239¥19,293––

Balance at the end of period¥18,239¥19,293

Balance at the beginning of period
Changes during period
Dividends of surplus
Profit attributable to owners of parent company
Purchase of treasury shares
Disposal of treasury shares
Net changes in items other than shareholders' equity
Total changes during period
Balance at the end of period

Total shareholders'equity(¥6,546)¥117,230

Retained earnings Treasury shares¥86,244(7,399)11,288(2,479)5(7,399)11,288(2,479)5

3,888(2,473)

1,415¥90,133(¥9,019)¥118,646

Accumulated other comprehensive income
Net unrealized
RemeasureTotal accuNon-controlling Total net assets
gains (losses)
Foreign curments ofmulated otherinterests
on availablerency transla- defined
benefitcomprehensive
for-sale securi- tion adjustment
plansincometies¥2,088(¥3,250)(¥549)(¥1,711)¥752¥116,271

148
148

3,498
3,498

174
174

3,821
3,821

129
129

(7,399)11,288(2,479)
5
3,951
5,366

¥2,237¥248(¥375)¥2,109¥882¥121,638

10

Fiscal Year ended March 31, 2024 (April 1, 2023 to March 31, 2024)
Millions of Yen
Shareholders' equity
Common stock

Capital surplus

Balance at the beginning of period
Changes during period
Dividends of surplus
Profit attributable to owners of parent company
Purchase of treasury shares
Disposal of treasury shares
Net changes in items other than shareholders' equity
Total changes during period¥18,239¥19,293––

Balance at the end of period¥18,239¥19,293

Balance at the beginning of period
Changes during period
Dividends of surplus
Profit attributable to owners of parent company
Purchase of treasury shares
Disposal of treasury shares
Net changes in items other than shareholders' equity
Total changes during period
Balance at the end of period

Total shareholders'equity(¥9,019)¥118,646

Retained earnings Treasury shares¥90,133(8,764)
13,141(3,719)70(8,764)
13,141(3,719)70

4,377(3,648)728¥94,510(¥12,668)¥119,374

Accumulated other comprehensive income
Net unrealized
RemeasureTotal accuNon-controlling Total net assets
gains (losses)
Foreign curments ofmulated otherinterests
on availablerency transla- defined
benefitcomprehensive
for-sale securi- tion adjustment
plansincometies¥2,237¥248(¥375)¥2,109¥882¥121,638

2,503
2,503

3,005
3,005

607
607

6,116
6,116

(379)
(379)

(8,764)
13,141(3,719)
70
5,736
6,464

¥4,740¥3,253¥231¥8,226¥502¥128,103

Thousands of U.S. dollars
Shareholders' equity
Total shareholders'equity($59,571)$783,659

Common stock

Capital surplus

Retained earnings Treasury shares

Balance at the beginning of period
Changes during period
Dividends of surplus
Profit attributable to owners of parent company
Purchase of treasury shares
Disposal of treasury shares
Net changes in items other than shareholders' equity
Total changes during period$120,469$127,431––

28,910(24,095)

4,808

Balance at the end of period$120,469$127,431$624,240($83,672)$788,468$595,330(57,886)
86,797(24,564)462(57,886)
86,797(24,564)
462

Accumulated other comprehensive income
Net unrealized
RemeasureTotal accuNon-controlling Total net assets
gains (losses)
Foreign curments ofmulated otherinterests
on availablerency transla- defined
benefit comprehensive
for-sale securi- tion adjustment
plansincometies
Balance at the beginning of period
Changes during period
Dividends of surplus
Profit attributable to owners of parent company
Purchase of treasury shares
Disposal of treasury shares
Net changes in items other than shareholders' equity
Total changes during period$14,775$1,638

16,532
16,532

19,848
19,848

4,009
4,009

Balance at the end of period$31,308$21,486$1,52611($2,477)$13,930$5,826$803,421

40,39640,396(2,503)(2,503)(57,886)
86,797(24,564)
462
37,886
42,695$54,333$3,316$846,123

AMANO Corporation and Subsidiaries

Consolidated Statement of Cash Flows
For the year ended March 31, 2024
Thousands of
U.S.dollars

Millions of Yen
2023

2024

2024

Income before income taxes¥16,752¥19,032$125,707

Depreciation and amortization

9,017

10,25667,741

Amortization of goodwill

311

293

1,935

Increase (decrease) in net defined benefit liabilities

108

97

641

Increase (decrease) in provision for stock benefit

70

120

793

Notes
Cash flows from operating activities

Increase (decrease) in provision for directors' stock benefit
Increase (decrease) in allowance for doubtful accounts

45

66

436

(113)

(137)

(905)

Interest and dividend revenue

(511)

(995)

(6,572)Equity in (earnings) losses of affiliates

(172)

(184)

(1,215)Interest expenses

151

284

1,876

Foreign currency translation loss (gain)

(79)

(145)

(958)

Loss (gain) on sale of fixed assets

(10)

27

178

Loss on disposal of fixed assets

58

72

476

150

1,713

11,314(Increase) decrease in trade notes and accounts receivable and contract assets(2,002)(4,110)(27,147)(Increase) decrease in inventories(2,617)(813)(5,370)Loss (gain) on valuation of investment securities

Increase (decrease) in trade payables
Increase (decrease) in other current liabilities

853

821

5,423

1,041

2,216

14,637

591

403

2,662

23,64429,021

191,684

Receipts from interest and dividends

614

1,102

7,279

Interest paid

(151)

(284)

(1,876)(5,670)(6,089)(40,218)

514

22

145

18,951

23,771

157,008(22,787)

Other
Subtotal

Income taxes paid
Income taxes refunded
Net cash provided by operating activities
Cash flows from investing activities
Payment for acquisition of securities(3,850)(3,450)

Proceeds from redemption of securities

4,050

3,950

26,090

Payment for purchase of tangible fixed assets(2,795)(3,417)(22,569)

18

129

852

Payment for acquisition of intangible fixed assets(1,577)(2,439)(16,110)

Payment for acquisition of investment securities

(306)

(306)

(2,021)–(1,809)(11,948)

Increase in time deposits(5,892)(13,530)(89,366)

Proceeds from withdrawal of time deposits

2,968

10,856

71,7047(205)(1,354)(7,376)(10,221)(67,510)Proceeds from sale of tangible fixed assets

Payments for purchase of shares of subsidiaries resulting in change
in scope of consolidation

Other
Net cash used in investing activities
Cash flows from financing activities
Increase in short-term loans payable

213

77

509

Repayment for short-term bank loans

(385)

(230)

(1,519)Payment for acquisition of treasury stock(2,479)(3,719)(24,564)

Repayments of lease liabilities(5,607)(6,785)(44,815)

Proceeds from sale and leaseback

1,730

1,732

11,440

Dividends paid

(7,399)(8,764)(57,886)

Payment of dividends to non-controlling shareholders
Net cash flows from financing activities

(22)

(526)

(3,474)(13,950)(18,216)(120,317)

Effect of exchange rate changes on cash and cash equivalents

1,528

1,230

8,124

Net increase (decrease) in cash and cash equivalents(847)(3,435)(22,688)

Cash and cash equivalents at the beginning of period

55,93155,084363,831

Cash and cash equivalents at the end of period¥55,084¥51,648$341,136

12

AMANO Corporation and Subsidiaries

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

1. Scope of Consolidation(1) Consolidated subsidiaries :32 companies
Name of principal consolidated subsidiaries:(a) Domestic Companies
Amano Management Service Corporation, Amano Maintenance Engineering Corporation, Amano Business Solutions Corporation, Amano Musashi
Electric Corporation, Amano Secure Japan Corporation, Environmental Technology Co., Ltd., Amano Agency Corporation(b) Overseas Companies
AMANO USA HOLDINGS, Inc., AMANO CINCINNATI, INC., AMANO PIONEER ECLIPSE CORPORATION., AMANO MCGANN,
INC.,ACCU-TIME SYSTEMS, INC., AMANO TIME & ECOLOGY DE MEXICO S.A.DE C.V., AMANO EUROPE HOLDINGS, N.V., AMANO EUROPE, N.V., HOROQUARTZ S.A.,AMANO MALAYSIA SDN. BHD.,AMANO TIME & AIR SINGAPORE PTE. LTD., PT. AMANOINDONESIA, AMANO THAI INTERNATIONAL CO., LTD., AMANO INTERNATIONAL TRADING(SHANGHAI) CO., LTD.,AMANO
KOREA CORPORATION, Other 10 companies(2) Name of unconsolidated subsidiaries· AMANO Software Engineering(Shanghai)Co.,Ltd.
· Mobile Parking Co.,Ltd.
· AMANO PARKING EUROPE N.V.
(The reason for excluding these subsidiaries from consolidation)
Unconsolidated subsidiaries are excluded from the scope of consolidation because these companies are small companies and the sums of each of the total
assets, net sales, net income and retained earnings (equal to share interest) of these companies does not have any significant impacts on the consolidated
financial statements.

2. Matters Concerning Application of the Equity Method
The number of an unconsolidated subsidiary accounted for by the equity method:0 company
The number of an affiliated company accounted for by the equity method:1 company
The affiliate accounted for by the equity method is listed below:· CREO CO., LTD.
The name of a major affiliated company that do not apply the equity method is listed below:· Preferred Robotics, Inc.
(The reason for not applying the equity method)
Unconsolidated subsidiaries (3 companies) and an affiliate (1 company) are excluded from the scope of equity method because their net income or loss (equal
to share interest) and retained earnings (equal to share interest) have a minimal effect on the consolidated financial statements and they are not significant as
a whole.

3. Accounting Periods of Consolidated Subsidiaries
The accounts of the overseas consolidated subsidiaries are consolidated using their financial statements as of their respective fiscal year end, which falls on
December 31, 2023 and necessary adjustments are made to their financial statements to reflect any significant transactions from January 1 to March 31,
2024. All significant intercompany balances and transactions are eliminated in consolidation.

4. Summary of Significant Accounting Policies(1) Valuation standards and methods for significant assets(a) Marketable securities
Held-to-maturity debt securities
Amortized cost method applied
Other securities for which market quotations are available are stated at fair value.
The fair value method based on the market price, etc. as of the end of the fiscal year
(Unrealized gains or losses on available-for-sale securities are included directly in the net assets, and costs of selling available-for-sale securities iscalculated by the moving-average method.)
Other securities for which market quotations are unavailable are stated at cost for the moving-average method.
(b) Derivatives
The fair value method(c) Inventories
Inventories are stated at cost (after any writedown due to reduced profitability). Cost is determined principally using the periodic average method.

13

(2) Depreciation methods for significant depreciable assets(a) Property, plant and equipment (excluding Leased Assets)
Property, plant and equipment are stated at cost, less accumulated depreciation. Depreciation is computed on the declining balance method, based on
the estimated useful lives, except for buildings acquired on or after April 1, 1998 and for facilities attached to buildings and structures acquired on orafter April 1, 2016, which are computed on the straight-line method.
The ranges of the useful lives of assets are:
Buildings and structures 5-50 years
Machinery and vehicles 7-17 years(b) Intangible assets (excluding Leased Assets)
Intangible assets are amortized using the straight-line method.
Software developed for external sale is amortized over the estimated sales period(3 years). Software costs for internal use are amortized by the straightline method over their expected useful lives (5 years).
(c) Leased Assets
Leased assets in finance lease transactions not involving transfer of ownership are depreciated by the straight-line method over the term of the lease, witha residual value of zero. For some of its subsidiaries which prepare the financial statements based on IFRS or US-GAAP, in principle, lessees recognize allleases on the balance sheet as assets and liabilities.

(3) Accounting standards for significant allowances(a) Allowance for doubtful accounts
In general, the Company and its subsidiaries provide the allowance based on the past receivables loss experience for a certain reference period. Furthermore, for receivables from companies with financial difficulty, which could affect the debtors' ability to perform their obligations, the allowance isprovided for estimated unrecoverable amounts individually.
(b) Accrued bonuses
In order to provide for the payment of bonuses to employees, the amount accrued for the current fiscal year is recorded based on the estimated amountof payment.
(c) Accrued officers' bonuses
In order to provide for the payment of bonuses to directors, the amount accrued for the current fiscal year is recorded based on the estimated amount of
payment.
(d) Provision for stock benefit
In order to prepare for the payment of company stocks to employees under the stock benefit program, provision for stock benefit is recorded based on
the estimated amount of stock benefit obligation corresponding to the merit points allocated to the employees in the current consolidated fiscal year.
(e) Provision for directors’ stock benefit
In order to prepare for the payment of company stocks to directors under the share payment program, provision for stock benefit is recorded based on
the estimated amount of stock benefit obligation corresponding to the merit points allocated to the directors in the current consolidated fiscal year.

(4) Retirement benefits(a) Method of attributing estimated amounts of retirement benefits to periods
The Company and some of its subsidiaries recognize accrued pension and severance costs to employees based on the actuarial valuation of projected benefit obligation and plan assets at their value. The retirement benefit obligation for employees is attributed to each period by the benefit formula method.
(b) Treatment method for actuarial differences and prior service costs
Prior service costs are amortized based on the straight-line method over a period years (7-10years) within the average remaining service period of employees. Actuarial gains and losses are amortized based on the straight-line method over a period years (7-10years) within the average remaining service
period of employees starting from the beginning of the subsequent year of when the cost is incurred.

(5) Recognition criteria for significant revenue and expenses
The Company and its subsidiaries recognizes revenue based on the following five-step approach:
Step 1: Identify the contract(s) with a customer
Step 2: Identify the performance obligations in the contract
Step 3: Determine the transaction price
Step 4: Allocate the transaction price to the performance obligations in the contract
Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation
Major businesses of the Company and its subsidiaries are the manufacturing and sales of Information Systems, Time Management Products, Parking
Systems, Environmental Systems, and Clean Systems. See “Segment Information 1. Outline of Reporting Segments” for details. The Company and its
subsidiaries normally recognize revenue for the sales of these products upon the completion of acceptance inspection by the customer, because the Company
and its subsidiaries determine that the customer gains control over the products and its performance obligation is satisfied upon the completion of thecustomer’s acceptance inspection. For some non-installed products and domestic sales of supplies, etc., if the period from shipment to acceptance inspection
by the customer is normal, revenue is recognized at the time of shipment. Revenue is measured at the price promised to the customer in the contract, after
deducting any trade discounts and/or returns, etc.
The Company and its subsidiaries may provide the customer with maintenance and other services related to these products. In this case, revenue for suchservices is recognized over the contract period as the performance obligations for such services are satisfied basically over the passage of time.
Revenue for some of construction contracts for Parking systems and Environmental systems businesses is recognized based on the percentage of completion pertaining to the satisfaction of performance obligation because the Company and its subsidiaries have determined that the performance obligation issatisfied over a certain period. For constructions whose construction period is extremely short, revenue is recognized when the installation that fully satisfies
the performance obligation is completed. The percentage of completion pertaining to the satisfaction of performance obligation is estimated based on thepercentage of actual cost to estimated total cost (input method) if the result of performance obligation can be reasonably measured.

14

(6) Foreign currency translation
Receivables and payables in foreign currencies are translated at the foreign exchange rates prevailing at the respective balance sheet dates and the resulting
transaction gains or losses are included in net profit or loss for the period. Also the assets and liabilities of foreign subsidiaries are translated at the foreign exchange rates prevailing at the respective balance sheet dates. On the other hand, all the profit and loss accounts are translated at the average foreign exchange
rates for the respective periods. Differences arising from translation are presented as "Foreign currency translation adjustments" and "Non-controllingshareholders' interests " in the net assets accompanying consolidated financial statements.

(7) Goodwill amortization method and amortization periods
Goodwill is amortized over its estimated useful life. If the amount of goodwill is immaterial, It is amortized in full in the year of acquisition.

(8) Cash and cash equivalents in the consolidated statements of cash flows
Cash and cash equivalents consist of cash on hand, cash in banks which can be withdrawn at any time and short-term investments with a maturity of threemonths or less when purchased and which can easily be converted to cash and are subject to little risk of change in value.

(9) Other important matters for preparation of consolidated financial statements
Not applicable[Accounting Standard Issued but Not yet Applied]“Accounting Standard for Current Income Taxes” (ASBJ Statement No. 27, October 28, 2022, Accounting Standards Board of Japan)“Accounting Standard for Presentation of Comprehensive Income” (ASBJ Statement No. 25, October 28, 2022, Accounting Standards Board of Japan)“Implementation Guidance on Tax Effect Accounting” (ASBJ Guidance No. 28, October 28, 2022, Accounting Standards Board of Japan)(1) Overview
Provides for the treatment of income tax classification incase of income taxes are imposed for other comprehensive income and tax effects on sale of shares ofsubsidiaries, etc. when group corporation taxation is applied.

(2) Scheduled date of application
It will be applied from the beginning of the fiscal year ending March 31, 2025.

(3) Effect of application of the accounting standards, etc.
The effect of application of the accounting standards, etc. on the consolidated financial statements is currently under evaluation.

[Additional Information](Directors' Compensation BIP Trust and Employee Stock Ownership Plan (J-ESOP))
For the purpose of enhancing the motivation to contribute the improvement of medium to long-term business performance and to increase the corporate
value, the Company and some of its subsidiaries have introduced the Compensation BIP Trust system for directors(excluding external directors and directors
residing overseas) and operating officers (excluding officers residing overseas), as well as the Employee Stock Ownership Plan (J-ESOP) system for employees who meet the prescribed requirements.
(a) Outline of the system
Under the system, a trust is established with money contributed by the Company as a source, stocks of the Company are acquired by the trust, and thestocks are granted to the eligible persons. Furthermore, as for the executive compensation BIP trust, the trust period will be extended for the same period
as the initial trust period as a stock compensation plan linked to the period of the 9th Medium-Term Business Plan which started in April 2023. Under
the Directors' Compensation BIP Trust, in accordance with the stock distribution rules and based on points granted according to the attainment level ofnumerical targets related to their positions and management indicators, stocks of the Company are provided by the trust to directors and operating officers.
Under the Employee Stock Ownership Plan (J-ESOP), in accordance with the stock distribution rules and based on points granted according to their positions and operating performance, stocks of the Company are provided by the trust to employees who meet certain requirements.
(b) Stocks of the Company that remain in the trust
Stocks of the Company that remain in the trust are recorded as treasury stock in the net assets section with the book value of the trust (excluding incidental
expenses).
The book value and the numbers of the treasury stock at March 31, 2024 are ¥2,268 million and 793,884 shares, respectively.

5.United States Dollar Amounts
The Company maintains its accounting records in Japanese yen. The U.S. dollar amounts included in the consolidated financial statements and notes
there to represent the arithmetical results of translating Japanese yen to U.S. dollars at a rate of ¥151.40= US$1, the approximate effective rate of exchange
prevailing on March 31, 2024. The inclusion of U.S. dollar amounts is solely for convenience of readers outside Japan and is not intended to imply that yen
amounts could be converted, realized, or settled in U.S. dollars at that, or any other rate.

15

[Consolidated Balance Sheet]

6. Investments in Unconsolidated Subsidiaries and Affiliates
Among investments in securities, the amount in aggregate corresponding to unconsolidated subsidiaries and affiliates are as follows:
Millions of Yen
2023¥4,38953

Investments in equity securities
Others2024¥2,782
53

Thousands of
U.S.dollars
2024$18,375350

7. Notes and accounts receivable—trade and contract assets
The amounts of arising the contract with the customer included in the notes receivable, accounts receivable and contract assets,
the amounts of receivables and contract assets are as follows:
Millions of Yen

Thousands of
U.S.dollars
2024

2023

2024

Trade notes receivable¥1,429¥1,070$7,067

Accounts receivable

28,27432,382

213,884

Contract assets

1,254

2,585

17,074

8. Trade Notes Receivable at the end of the Fiscal Year
The Company recognizes settlements of trade notes receivable when the banks actually clear the notes.
As March 31, 2024 was a holiday for financial institutions, the following account includes the unsettled balance of tradenotes receivable due on that date in the accompanying consolidated balance sheet as of March 31, 2024.
Millions of Yen
2024

2023
–

Trade notes receivableThousands of
U.S.dollars
2024

¥76

$502

2024
¥6,979Thousands of
U.S.dollars
2024$46,096

9. Other Current Liabilities
The amount of contract liability included in the others is as follows:
Millions of Yen
2023¥5,186

Contract liability

16

[Consolidated Statement of Income]10. Selling, General and Administrative Expenses
Selling, general and administrative expenses during the years ended March 31, 2023 and 2024 principally include:
Millions of Yen
2023¥1,964130
1,103
20,137
7
56
51

Provision for employees' bonuses
Provision for directors' bonuses
Retirement Benefit Expenses
Salaries and allowances
Provision for allowance for doubtful accounts
Provision for stock benefit
Provision for directors’ stock benefit

2024¥2,031200
1,072
22,729(37)
10671

Thousands of
U.S.dollars
2024$13,415
1,321
7,081
150,125
(244)
700
469

11. Research and Development Costs
Research and development costs included in selling, general and administrative expenses and manufacturing cost are as follows:
2023

2024

Thousands of
U.S.dollars
2024¥2,370¥2,799$18,487

Millions of Yen
Research and development costs

12. Gain on Sale of Fixed Assets
Details of Gain on sale of fixed assets are as follows:
Millions of Yen
2023
Buildings and structures
Machinery and equipment
Tools, Furniture and Fixtures
Total

–
¥4
7
¥11

2024
¥3
5
0
¥8

Thousands of
U.S.dollars
2024
$20
33
0
$53

13. Loss on Disposal of Fixed Assets
Details of Loss on disposal of fixed assets for the years ended March 31, 2023 and 2024 are as follows:
2024
¥5
1
8
33
23
¥72

Thousands of
U.S.dollars
2024
$33
7
53
218
152
$476

2024
¥13
0
0
22
¥35

Thousands of
U.S.dollars
2024
$86
0
0
145
$231

Millions of Yen
2023
¥8
0
17
30
0
¥58

Buildings and structures
Machinery and equipment
Tools, Furniture and Fixtures
Leased Assets
SoftwereTotal

14. Loss on Sale of Fixed Assets
Details of Loss on sale of fixed assets are as follows:
Millions of Yen
2023
–
–
¥1
–
¥1

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

17

15. Consolidated Statement of Comprehensive Income
The following table presents reclassification adjustments and tax effects allocated to each component of other comprehensive
income:Thousands of
U.S.dollars

Millions of Yen
2023

2024

2024

¥227
–
227
(76)
150

¥3,599–3,599(1,101)
2,498$23,771–
23,771(7,272)
16,499Net unrealized gains (losses) on available-for-sale securities:
Amount arising during the year
Reclassification adjustments
Amount before tax effectTax effectNet unrealized gains (losses) on other securities
Foreign currency translation adjustments:

0

Amount arising during the year
Reclassification adjustments
Amount before tax effectTax effectTranslation adjustments

3,583
–
3,583
–
3,583

3,036
–
3,036
–
3,036

Remeasurements of defined benefit plans:

20,053–20,053–20,0530

Amount arising during the year
Reclassification adjustments
Amount before tax effectTax effect
Retirement benefits liability adjustments

84
148
232
(58)
174

728
167
895
(288)
607

4,808
1,103
5,911
(1,902)
4,009

0
–

0
(0)

0
(0)

0
¥3,907

0¥6,142

0$40,568

Share of other comprehensive income ofassociates accounted for the using equity method:Amount arising during the year
Reclassification adjustments
Share of other comprehensive income of companies accounted
for by the equity method
Total other comprehensive income (loss)

18

16. Consolidated Statements of Changes in Net Assets
Fiscal Year ended March 31, 2023 (April 1, 2022 to March 31, 2023)(1) Shares issued and outstanding
Share type
Common stock (shares)

As of April 1, 2022
76,657,829

Increase–

Decrease–

As of March 31, 2023
76,657,829

As of April 1, 2022
2,763,911

Increase
994,704

Decrease
2,300

As of March 31, 2023
3,756,315(2) Shares of treasury stock
Share type
Common stock (shares)(Reason for the changes)
The increase in the number of shares is due to the purchases of 804 shares less than one unit.
Purchase of treasury stock of 993,900 shares as determined by the Board of Directors' resolution on April 26, 2022.
The decrease in the number of shares is due to benefit of 2,300 shares by Employee Stock Ownership Plan (J-ESOP).

(3) Dividends(a) Dividends paid
Resolution
Regular shareholders meeting,June 29, 2022
Board of directors meeting,
October 28, 2022

Total dividend(Millions of Yen)

Dividend per share(Yen)

Date of record

Effective dateCommon stock¥5,200¥70March 31, 2022

June 30, 2022

Common stock

2,199

30

September 30 2022

December 2, 2022

Share type

Notes:"Total dividend" as determined by the Ordinary general meeting of shareholders' resolution on June 29, 2022 includes ¥18 million for dividends on the
Company's shares owned by Directors' Compensation BIP Trust and ¥9 million for dividends on its shares owned by Employee Stock Ownership Plan (JESOP).
"Total dividend" as determined by the Board of Directors' resolution on October 28, 2022 includes ¥7 million for dividends on the Company's shares
owned by Directors' Compensation BIP Trust and ¥4 million for dividends on its shares owned by Employee Stock Ownership Plan (J-ESOP).
(b) Dividends for which the date of record falls in the current fiscal year, but the effective date will be next fiscal year.
Resolution

Share typeDividend funding

Regular shareholders meeting,June 29, 2023

Common stock

Retained earnings

Total dividend Dividend per share(Millions of Yen)
(Yen)
¥5,863¥80

Date of record

Effective date

March 31,2023

June 30, 2023

Notes:"Total dividend" includes ¥21 million for dividends on the Company's shares owned by Directors' Compensation BIP Trust and ¥10 million for dividends
on its shares owned by Employee Stock Ownership Plan (J-ESOP).

19

Fiscal Year ended March 31, 2024 (April 1, 2023 to March 31, 2024)(1) Shares issued and outstanding
Share type
Common stock (shares)

As of April 1, 2023
76,657,829

Increase–

Decrease–

As of March 31, 2024
76,657,829

As of April 1, 2023
3,756,315

Increase
1,217,366

Decrease
25,135

As of March 31, 2024
4,948,546(2) Shares of treasury stock
Share type
Common stock (shares)

Notes:
Treasury stock at the end of the current consolidated fiscal year includes 793,884 shares of treasury stock held by Directors' Compensation BIP Trust and
Employee Stock Ownership Plan (J-ESOP).
(Reason for the changes)
The increase in the number of shares is due to the purchases of 1,466 shares less than one unit.
Purchase of treasury stock of 795,100 shares as determined by the Board of Directors' resolution on April 26, 2023.
The increase in the number of shares is due to acquisitions of 153,400 shares by Directors' Compensation BIP Trust.
The decrease in the number of shares is due to delivery of 5,435 shares by Directors' Compensation BIP Trust.
The increase in the number of shares is due to acquisitions of 267,400 shares by Employee Stock Ownership Plan (J-ESOP).
The decrease in the number of shares is due to benefit of 19,700 shares by Employee Stock Ownership Plan (J-ESOP).

(3) Dividends(a) Dividends paid
Resolution

Share type

Regular shareholders meeting,June 29, 2023
Board of directors meeting,
October 27, 2023

Commonstock
Commonstock

Total dividend(Thousands of
U.S. dollars)

Dividend
per share(Yen)

Dividend
per share(U.S. dollars)¥5,863$38,725¥80$0.5282,900

19,15540

0.264

Total dividend(Millions of Yen)

Date of record Effective date
March 31,
June 30, 2023
2023
September 30, December 4,
2023
2023

Notes:"Total dividend" as determined by the Regular shareholders meeting's resolution on June 29, 2023 includes ¥21 million for dividends on the Company's
shares owned by Directors' Compensation BIP Trust and ¥10 million for dividends on its shares owned by Employee Stock Ownership Plan (J-ESOP).
"Total dividend" as determined by the Board of Directors' resolution on October 27, 2023 includes ¥16 million for dividends on the Company's shares
owned by Directors' Compensation BIP Trust and ¥15 million for dividends on its shares owned by Employee Stock Ownership Plan (J-ESOP).
(b) Dividends for which the date of record falls in the fiscal year, but the effective date is after the end of the fiscal year.
Total dividend
Dividend
Dividend
Dividend Total dividend
Resolution
Share type
(Thousands ofper shareper share
funding (Millions of Yen)
U.S. dollars)(Yen)(U.S. dollars)
Regular shareholders meeting, Common Retained¥6,887$45,489¥95$0.627
June 27, 2024
stock
earnings

Date ofrecordEffective
date

March 31,2024

June 28,
2024

Notes:"Total dividend" includes ¥39 million for dividends on the Company's shares owned by Directors' Compensation BIP Trust and ¥36 million for dividends
on its shares owned by Employee Stock Ownership Plan (J-ESOP).

20

17. Consolidated Statement of Cash Flows(1) Reconciliations of cash and cash equivalents to the amounts shown in the consolidated balance sheet are as follows:
Millions of Yen
2023¥62,399
3,357
65,757(8,275)(2,350)(47)¥55,084

Cash and bank deposits
Marketable securities
Sub total
Time deposits due over three months
Marketable securities due over three months
Bank overdraft
Cash and cash equivalents

2024¥62,577
2,725
65,303(11,294)(2,359)–¥51,648

Thousands of
U.S.dollars
2024$413,322
17,999431,328(74,597)(15,581)–$341,136(2) Supplemental disclosure of non-cash transactions
The significant non-cash transactions for the years ended March 31, 2023 and 2024 are as follows:
Millions of Yen
2023¥7,0617,606

Leased assets
Lease obligations

2024¥7,482
8,091

Thousands of
U.S.dollars
2024$49,41953,441

18. Lease Commitments(1) Finance lease
Finance lease transactions not involving transfer of ownership(a) Leased assets
Tangible assets:Mainly operating equipment for the parking system business.
(b) Depreciation method
Leased assets are depreciated by the straight-line method over the term of the lease, with a residual value of zero.

(2) Operating lease(a) Lessees' accounting
Minimum future lease payments for non-cancelable operating leases are as follows:

2024
¥61
–
¥61

Thousands of
U.S.dollars
2024
$403
–
$403

2024
¥98
–
¥98

Thousands of
U.S.dollars
2024
$647
–
$647

Millions of Yen
2023
¥63
61
¥125

Due within 1 year
Due over 1 year
Total(b) Lessors' accounting
Minimum future lease payments for non-cancelable operating leases are as follows:

Millions of Yen
2023
¥101
98
¥199

Due within 1 year
Due over 1 year
Total

21

19. Financial Instruments(1) Matters concerning the status of financial instruments(a) Management policy
The management policy of the Company is to invest surplus funds into highly secure financial assets. The Company does not have any speculative trading.
(b) Financial instruments and their risks
Both notes receivable and accounts receivable as operating receivables are exposed to credit-related losses in the event of nonperformance by customers.
Marketable securities and investments in securities are exposed to changes in market price. The Company holds marketable securities and investments insecurities mainly as held-to-maturity or due to relationship-building with business clients. Notes payable, accounts payable and electronically recordedmonetary claims as trade liabilities are due and payable within one year.
(c) Risk management policies① Management policy for credit risks (losses in the event of nonperformance by business clients)
The Company has an established credit management policy, whereby credit risks exposure arising from both notes and accounts receivable is monitored on an ongoing basis in order to detect credit deterioration as well as to trigger appropriate minimizing measures at its early stages.
Held-to-maturity investments are subject to the examination and decision of the Funds Management Review Committee and accordingly, investments largely consist of negotiable deposits and high graded securities, which are considered to have minimal credit risk.
② Management policy for market risks (foreign currency exchanges and interest rates)
Marketable securities and investments in securities are marked to market and the financial condition of the issuer (client company) is monitored
periodically.
In addition, the holdings of bonds and securities, other than held-to-maturity investments, are reviewed continuously, taking into consideration therelationship and other factors with the issuer.
③ Management policy for liquidity risk (in default on its financial obligations)
The Company has managed liquidity risk by holding appropriate funds based on the forecasts, and actual cash flow is monitored by the management.
(d) Supplementary explanation on the fair value of financial instruments
The fair values of financial instruments are based on quoted market prices. If quoted market prices are unavailable, the fair values are estimated based on
the prices which are assessed as reasonable by the Company. Since the Company takes contingent variable factors into account when estimating the fairvalue, it would vary depending on the different preconditions.

22

(2) Estimated fair value of financial instruments
Differences between carrying value and estimated fair value as of March 31, 2023 and 2024 are as follows:

Carrying
value
Marketable securities and investments in securities① Held-to-maturity② Subsidiaries and affiliates③ Other securities
Total (Assets)¥5,034
2,331
8,735¥16,101

Carrying
value
Marketable securities and investments in securities① Held-to-maturity② Subsidiaries and affiliates③ Other securities
Total (Assets)

Millions of Yen
2023
Estimated
Difference
fair value
in amounts¥5,0292,367
8,735¥16,132

(¥4)
35
–
¥30

Millions of Yen
2024
Estimated
Difference
fair value
in amounts¥4,833
2,410
11,700¥18,945¥4,824
2,830
11,700¥19,354

(¥9)
419
–
¥409

Thousands of U.S.dollars
2024
Carrying
Estimated
Difference
value
fair value
in amounts$31,922
15,91877,279$125,132$31,863
18,692
77,279$127,834

($59)
2,768
–
$2,701(NOTES)"Cash and bank deposits," "Notes and accounts receivable—trade and contract assets," "Notes and accounts payable—trade," and "Electronically recorded
obligations" are omitted as they are cash and their fair value is close to the book value since these items are settled in a short period of time.
Financial instruments whose fair values are difficult to estimate are not included in "Marketable securities and investments in securities". These financial instruments are recorded in consolidated balance sheets are as follows:
Millions of Yen
Unlisted securities (Carrying value)

Thousands of U.S.dollars
2024
¥544

2023
¥2,23023

2024$3,593

Note1: Redemption schedule for monetary claims and securities with maturities subsequent to the balance sheet date is as follows:

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

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

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

Millions of Yen
2023
Due after 1 year
Due after 5 year
through 5 years
through 10 years
–
–
–
–

Due
1 Year or Less
¥62,399
29,703
2,350¥94,452¥859¥859¥1,724¥1,724

Millions of Yen
2024
Due after 1 year
Due after 5 year
through 5 years
through 10 years

Due
1 Year or Less
¥62,577
33,4532,359¥100,976

–
–

–
–

¥450
¥450

¥2,023¥2,023Thousands of U.S. dollars
2024
Due after 1 year
Due after 5 year
through 5 years
through 10 years

Due
1 Year or Less
$413,322
220,958
0
15,581$666,948

Due
after 10 years
–
–

–
–

–
–

$0
2,972
$2,972$0
13,362$13,362

¥100
¥100

Due
after 10 years

–
–

–
–

Due
after 10 years

–
–

$0

–
–

Note2: Repayment schedule for long-term loans payable, lease obligations and other interest-bearing liabilities subsequent to the balance sheet date is as follows:

Long-term loans payable
Lease obligations
Total

Long-term loans payable
Lease obligations
Total

Long-term loans payable
Lease obligations
Total

Millions of Yen
2023
Due after 2 year Due after 3 year
through 3 years through 4 years––¥2,262¥1,036¥2,262¥1,036Due
1 Year or Less–
¥4,150¥4,150Due after 1 year
through 2 years–¥3,278¥3,278Due after 4 year
through 5 years
–
¥670
¥670

Due
after 5 Years
–
¥543
¥543

Due
1 Year or Less–
¥5,407¥5,407

Millions of Yen
2024
Due after 1 year Due after 2 year Due after 3 year Due after 4 year
through 2 years through 3 years through 4 years through 5 years––––¥4,373¥1,953¥1,056¥470¥4,373¥1,953¥1,056¥470

Due
after 5 Years
–
¥502
¥502

Due
1 Year or Less–
$35,713$35,713

Thousands of U.S. dollars
2024
Due after 1 year Due after 2 year Due after 3 year Due after 4 year
through 2 years through 3 years through 4 years through 5 years––––$28,884$12,900$6,975$3,104$28,884$12,900$6,975$3,104Due
after 5 Years–$3,316$3,31624

(3) Matters concerning the breakdown of financial instruments by fair value level
The fair value of financial instruments is classified into the following three levels according to the observability and importance of the input related to thecalculation of the fair value.
Level 1:quoted prices in active markets for identical assets or liabilities that are observable by the entity at the measurement date are used 		
Level 2:inputs other than quoted market prices included within Level 1 that are observable for the asset or liability, either directly or indirectly are used
Level 3:Unobservable inputs are used
If the inputs used to measure fair value are categorized into different levels of the fair value hierarchy, the fair value measurement is categorized in its entirety
in the level of the lowest level input that is significant to the entire measurement (based on the application of judgement).
(a) Financial instruments recorded on the consolidated balance sheet at fair value are as follows:

Marketable securities and investments in securities:
Other securities
Total

Marketable securities and investments in securities:
Other securities
Total

Marketable securities and investments in securities:
Other securities
Total

Level 1

2023
Fair values (Millions of Yen)
Level 2
Level 3

Total

¥7,728¥7,728¥1,007¥1,007––¥8,735¥8,735

Level 1

2024
Fair values (Millions of Yen)
Level 2
Level 3

Total

–
–

¥11,700¥11,700

Level 1Thousands of U.S. dollars
2024
Level 2
Level 3

Total

$74,861$74,861$2,411$2,411––$77,279$77,279

2023
Fair values (Millions of Yen)
Level 2
Level 3

Total

¥11,334¥11,334¥365¥365(b) Financial instruments that are not recorded on the consolidated balance sheet at fair value are as follows:

Level 1Marketable securities and investments in securities:
Held-to-maturity
Subsidiaries and affiliates
Total

Marketable securities and investments in securities:
Held-to-maturity
Subsidiaries and affiliates
Total

Marketable securities and investments in securities:
Held-to-maturity
Subsidiaries and affiliates
Total

–

¥5,029¥2,367¥2,367¥5,029–––¥5,0292,367¥7,396

Level 1

2024
Fair values (Millions of Yen)
Level 2
Level 3

Total

–

–

¥4,824¥2,830¥2,830¥4,824–––¥4,8242,830¥7,654

Level 1Thousands of U.S. dollars
2024
Level 2
Level 3

Total

–
–
–

$31,863
18,692$50,555––$31,863$18,692$18,692$31,863–

Notes:Explanation of the valuation technique used to calculate the fair value and the inputs related to the measurement of the fair value.
Marketable securities and investments in securities:
The fair value of listed stocks is evaluated using the price of the exchange. Listed stocks are traded in active markets and are therefore classified as Level 1 fair value.
Bonds and investment trusts are classified as Level 2 since they are evaluated using the prices offered by the financial institutions.
Since certificates of deposit are short-term, their fair value is almost equal to their book value, so they are classified as Level 2 although they are based on the book value.

25

[Marketable securities](1) Held-to-maturity securities
Carrying
value

Millions of Yen
2023
Fair
Unrealizedvalue
gains (losses)

Held-to-maturity securities with fair value
exceeding carrying value

¥609

¥611

¥1

Held-to-maturity securities with fair value notexceeding carrying value

4,424

4,417

(6)

¥5,034¥5,029

(¥4)

Total

Carrying
value

Millions of Yen
2024
Fair
Unrealizedvalue
gains (losses)

Thousands of U.S.dollars
2024
Carrying
Fair
Unrealized
value
value
gains (losses)

Held-to-maturity securities with fair value
exceeding carrying value

¥509

¥510

¥0

$3,362$3,369$0

Held-to-maturity securities with fair value notexceeding carrying value

4,323

4,313

(10)

28,55428,487(66)¥4,833¥4,824(¥9)$31,922$31,863

($59)

Total

(2) Other securities
Carrying
value

Millions of Yen
2023
Acquisition
Unrealized
cost
gains (losses)

Other securities with carrying
value exceeding acquisition cost
StocksOther
Subtotal¥6,417787
7,204¥2,858776
3,635¥3,558
10
3,569

1,310
220
1,531
¥8,735

1,616
247
1,863
¥5,498

(305)
(26)
(332)
¥3,236

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

Carrying
value

Millions of Yen
2024
Acquisition Unrealized
cost
gains (losses)

Thousands of U.S.dollars
2024
Carrying
Acquisition Unrealized
value
cost
gains (losses)

Other securities with carrying
value exceeding acquisition cost
StocksOther
Subtotal¥11,007110
11,117¥4,081
107
4,188¥6,9262
6,928$72,701
727
73,428$26,955707
27,662$45,746
13
45,760327
255
582¥11,700

400
274
674
¥4,863

(72)
(18)
(91)
¥6,837

2,160
1,684
3,844
$77,279

2,642
1,810
4,452
$32,120

(476)
(119)
(601)
$45,159

Other securities with carrying
value not exceeding acquisition costt
StocksOther
Subtotal
Total(3) Other securities soldNo sale of other securities was recorded for the year ended March 31, 2023 and 2024.

(4) Impaired securities
If the market value at the end of the period falls by 50% or more compared to the acquisition cost, the entire amount will be treated as impairment loss, andif it falls by 30% to 50%, the amount deemed necessary in consideration of the possibility of recovery will be treated as impairment loss.
Not applicable for the year ended March 31, 2023, impaired securities were omitted due to lack of significance.
For the year ended March 31, 2024,impairment loss of 1,713 million yen was recognized on a portion of investment securities.

[Derivative transaction]
Not applicable26

20. Retirement Benefits(1) Outline of the retirement benefit plans adopted
The Company adopted a defined benefit corporate pension scheme and a defined contribution pension scheme as part of its retirement benefit plan.
In addition, several subsidiaries have lump-sum payment plans and a defined benefit corporate pension plan. They calculate assets and liabilities for retirement benefits, and the retirement benefit expenses by means of a simplified method.

(2) Defined benefit plans (excluding plans to which the simplified method is applied)(a) Reconciliation of balance of retirement benefit obligation at the beginning and the end of the year
Millions of Yen
Balance at the beginning of the year
Service cost
Interest cost
Actuarial loss
Retirement benefits paid
Prior service cost
Increase amount resulting from changes in scope of consolidation
Other
Balance at the end of the year2023
¥14,055
994
87
(618)
(1,747)––76¥12,8472024¥12,847
960
137
(251)
(334)
–
219
27
¥13,606

Thousands of
U.S.dollars
2024$84,855
6,341
905(1,658)(2,206)–
178$89,868(b) Reconciliation of balance of pension assets at the beginning and the end of the year
Millions of Yen
2023¥11,892
293
(534)
757
(1,672)
57¥10,794

Balance at the beginning of the year
Expected return on plan assets
Actuarial loss
Contributions by the Company
Retirement benefits paid
Other
Balance at the end of the year2024
¥10,794
289
478
738
(239)
38
¥12,099

Thousands of
U.S.dollars
2024$71,295
1,909
3,157
4,875
(1,579)251$79,914(c) Reconciliation of balance of retirement benefit obligation and pension assets at the end of year and net defined benefit liabilities andassets recognized on the consolidated balance sheet
Millions of Yen

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

2023¥12,751(10,794)
1,956
96
2,053

2024
¥13,276(12,099)
1,177
330
1,507

Liability for retirement benefits
Asset for retirement benefits
Net defined benefit liabilities in the balance sheet

2,053–¥2,053

1,507–¥1,507

Funded retirement benefit obligation
Plan assets at fair value

27

Thousands of
U.S.dollars
2024$87,688(79,914)
7,774
2,180
9,954
0
9,954
–
$9,954

(d) Retirement benefit expenses and a detailed breakdown
Millions of Yen
2023
¥994
87
(293)
149
–
¥937

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

2024
¥960
137
(289)
166
–
¥974

Thousands of
U.S.dollars
2024$6,341905(1,909)1,096–$6,433(e) Reconciliation related to retirement benefits
Breakdown of items (prior to tax effect deduction) recognized as adjustments related to retirement benefits are as follows.

–

2024
–

Thousands of
U.S.dollars
2024–

Actuarial loss (gain)

¥234

¥895

$5,911

Total

¥234

¥895

$5,911Millions of Yen
2023
Prior service cost(f) Cumulative adjustments related to retirement benefits
Breakdown of items (prior to tax effect deduction) recognized as cumulative adjustments related to retirement benefits are as follows.
Millions of Yen
2023
Unrecognized prior service cost
Unrecognized actuarial loss
Total–(¥562)(¥562)

2024
–
¥333
¥333

Thousands of
U.S.dollars
2024–$2,199$2,199(g) Pension assets① Breakdown of principal pension assets
The main categories by percentage of total pension assets are as follows.
Millions of Yen
2024
2023
16%
10%
48%
54%
21%
17%
15%
19%
100%
100%

General accounts
Bonds
StocksOther
Total② Method for setting long-term expected rate of return
The current and projected allocation of pension assets and the current and future long-term rates of return for the diverse assets that comprise thepool of pension assets are considered when determining the long-term expected rate of return on pension assets.
(h) Actuarial assumptions
Major actuarial assumptions (weighted-average) used are as follows.
Millions of Yen
2024
2023
1.7%
1.4%
2.7%
2.7%
4.2%
5.0%

Discount rate
Expected long-term rate of return on plan assets
Expected rates of salary increases28

(3) Defined benefit plans to which the simplified method is applied(a) Adjustment of balance of defined benefit plans to which the simplified method is applied in the retirement benefit obligation at the
beginning and the end of the year
Millions of Yen
2023
¥85
67
(17)
(25)
2
¥112

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

2024
¥112
39
(57)
(24)
1
¥71

Thousands of
U.S.dollars
2024
$740
258
(376)
(159)
7
$469

Note:
The Balances of the Retirement benefit obligations are shown as the amounts after offsetting the balances of
the Net defined benefit assets (2023 ¥ 115 million, 2024 ¥ 142 million).
(b) Adjustment of balance of Retirement Benefit Obligations and Pension Assets at the End of the Year and Retirement Benefit Liabilities
and Retirement Benefit assets recorded on the Consolidated Balance Sheets

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

2023
¥336
(400)
(63)
176
112

2024
¥349
(447)
(97)
169
71

Thousands of
U.S.dollars
2024$2,305(2,952)
(641)
1,116
469

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

227
(115)
¥112

213
(142)
¥71

1,407
(938)
$469

2024
¥39

Thousands of
U.S.dollars
2024
$258

Millions of Yen
Funded retirement benefit obligation
Plan assets at fair value(c) Retirement Benefit Expenses
Retirement benefit expenses calculated using the simplified method are as follows:
Millions of Yen
2023
¥67

Retirement benefit expenses(4) Defined Contribution Plan
Contributions to defined contribution plans of the Company and its consolidated subsidiaries are as follows:
Millions of Yen
2023
¥606

Contributions to defined contribution plans[Information on "Stock Option Related"]
Not applicable for the year ended March 31, 2023 and 2024.

29

2024
¥635

Thousands of
U.S.dollars
2024$4,194

21. Tax Effect Accounting(1) The principal components of deferred tax assets and deferred tax liabilities are as follows:
2023

2024

Thousands of
U.S.dollars
2024

¥194
821
681
1,719
245
127
584
2,355
6,729
(1,585)(1,520)(3,105)
3,624

¥216
925
431
1,828
643
120
659
2,717
7,543
(1,679)(1,925)(3,604)
3,939$1,427
6,110
2,847
12,074
4,247
793
4,353
17,94649,822(11,090)(12,715)(23,804
26,017(889)(160)(1,049)¥2,574(1,864)(26)(1,891)¥2,048(12,312(172)(12,490)$13,527

Millions of Yen
Deferred tax assets:
Accrued enterprise tax
Accrued employees' bonuses
Net liability for retirement benefits
Loss carried forward(Note2)
Loss on write-down of investments in securities
Surplus on allowance for doubtful accounts
Unrealized gains
OthersSubtotal deferred tax assets
Less: valuation allowance for tax loss carryforwards(Note2)
Less: valuation allowance for deductible temporary difference
Subtotal valuation allowance(Note1)
Total deferred tax assets
Deferred tax liabilities:
Unrealized loss on other securities
OthersTotal deferred tax liabilities
Net deferred tax assets

Note1: Valuation allowance increased by ¥498 million, but there are no main reason.
Note2: A breakdown of net operating loss carryforwards and valuation allowance by expiry as follows:
Millions of Yen
2023
Due in 1 Yearor Less
Net operating loss carryforwards (a)Valuation allowance
Deferred tax assets–––

Due after
1 Year through2 Years–––

Due after
2 Years through3 Years–––

Due after
3 Years through4 Years–––

Due after
4 Years through5 Years–––

Due after
5 Years

Total¥1,719(1,585)¥134¥1,719(1,585)¥134

Due after
4 Years through5 Years–––

Due after
5 Years

Total¥1,828(1,679)¥149¥1,828(1,679)¥149

Due after
5 Years

Total$12,074(11,090)$984$12,074(11,090)$984(b)Millions of Yen
2024
Due in 1 Yearor Less
Net operating loss carryforwards (a)Valuation allowance
Deferred tax assets–––

Due after
1 Year through2 Years–––

Due after
2 Years through3 Years–––

Due after
3 Years through4 Years–––(b)

Thousands of U.S. dollars
2024
Due in 1 Yearor Less
Net operating loss carryforwards (a)Valuation allowance
Deferred tax assets–––

Due after
1 Year through2 Years–––

Due after
2 Years through3 Years–––

Due after
3 Years through4 Years–––

Due after
4 Years through5 Years–––(a)The amount is determined by multiplying the corresponding net operating loss carryforwards by the effective statutory tax rate.
(b)Deferred tax assets of ¥149 million are related to tax loss carryforwards of ¥1,828 million. The tax loss carryforwards for which the Company recognizeddeferred tax assets are determined to be recoverable by expected future taxable income.

30

(b)

(2) The reconciliation between the Statutory Effective Tax Rate and the Actual Effective Tax Rate when there is a difference between the statutory effective tax rate and the actual effective tax rate after the application of tax effect accounting is as follows.
Effective statutory tax rate
Adjustments:
Entertainment and other nondeductible expenses
Dividends and other nontaxable income
Inhabitant tax on per capita levy
Nondeductible amortization of goodwill
Eliminated dividend received from subsidiaries
Effect of North Americas CARES Act.
Tax credit for research and development expenses
Valuation allowance
Difference of foreign subsidiaries' taxation rates
Equity in earnings of affiliates
OthersActual effective tax rate after adoption of tax effect accounting

2023

2024

30.6%

–

0.7
(6.1)
0.5
0.6
6.1
(0.2)
(0.2)
0.2

–
–
–
–
–
–

–
–

(0.1)

–

(0.3)
0.4
32.2%

–
–
–

Notes:
Fiscal Year ended March 31, 2024 are omitted as the difference between the effective statutory tax rates and the actual effective tax rates after adoption oftax effect accounting is five one-hundredths or less of the effective statutory tax rates.
[Information on "Business Combinations Related"]
Not applicable for the year ended March 31, 2023.
Omitted due to lack of importance for the year ended March 31, 2024.
[Information on "Asset retirement obligations"]
Omitted due to lack of importance for the year ended March 31, 2023 and 2024.
[Information on "Rental and other real estate related"]
Omitted due to lack of importance for the year ended March 31, 2023 and 2024.

3122. Revenue Recognition(1) Disaggregated information for revenue generated from contracts with customers

Time Information
System business¥31,353
2,841
64,708––¥98,903

Millions of Yen
2023
Reportable segments
Environment
System business–––¥20,838
13,068¥33,906¥31,353
2,841
64,70820,83813,068¥132,810

Information Systems
Time Management Products
Parking Systems
Environmental Systems
Clean Systems
Revenue generated from contracts with customers

Time Information
System business¥35,7572,572
78,510––¥116,840

Millions of Yen
2024
Reportable segments
Environment
System business–––¥23,089
12,935¥36,024¥35,7572,572
78,51023,08912,935¥152,864

Information Systems
Time Management Products
Parking Systems
Environmental Systems
Clean Systems
Revenue generated from contracts with customers

Thousands of U.S. dollars
2024
Reportable segments
Time Information
Environment
System business
System business$236,176–
16,988–518,560–$152,503–
85,436–$771,731$237,939

Information Systems
Time Management Products
Parking Systems
Environmental Systems
Clean Systems
Revenue generated from contracts with customers

Total

Total

Total
$236,176
16,988518,560
152,50385,436$1,009,670

Notes
Some revenues from lease transactions are included, but they are included in revenue generated from contracts with customers because they are immaterial.

(2) Basis for understanding the revenue generated from contracts with customers
The information that is the basis for understanding the revenue generated from contracts with customers is described in the "4. Summary of Significant Accounting Policies (5) Recognition criteria for significant revenue and expenses" in "Notes to Consolidated Financial Statements".

32

(3)Information about the relationship between the fulfillment of performance obligations based on the contract with customers and cash flow generated from the contract, and the amount and timing of revenue expected to be recognized from thecontract with customers existing at the end of the current consolidated fiscal year after the next consolidated fiscal year.
Fiscal Year ended March 31, 2023 (April 1, 2022 to March 31, 2023)(a) Balance of contract assets and contract liabilities, etc.

Receivables generated from contracts with customers (Balance at the beginning of the year)
Receivables generated from contracts with customers (Balance at the end of the year)
Contract assets (Balance at the beginning of the year)
Contract assets (Balance at the end of the year)
Contract liability (Balance at the beginning of the year)
Contract liability (Balance at the end of the year)

Millions of Yen
2023¥27,237¥29,703¥757¥1,254¥4,540¥5,186On the consolidated balance sheet, contract assets are recorded in "Notes and accounts receivable—trade and contract assets", and contract liabilities are recorded in "Other current liabilities".
Contract assets are unbilled accounts receivable related to revenue recognized based on progress measurement in construction contracts
for some Parking Systems and Environmental Systems businesses, and are transferred to trade receivables at the time of customer acceptance. Consideration for these performance obligations is generally received within one year after the performance obligation is satisfied,according to separately determined payment conditions, and does not include any significant financing components.
In addition, there are no significant financial factors in the receivables arising from contracts with the Company group's customers.
Contract liabilities are primarily customer advance payments in contracts that continue to provide services. Of the outstanding contract
liabilities at the beginning of the period, the amount of revenue recognized in the current consolidated fiscal year is 3,636 million yen.
Also, the amount of revenue recognized from performance obligations that have been satisfied(or partially satisfied) in previous periods,
are immaterial.
(b) Transaction price allocated to residual performance obligations
The Company group applies practical expedients, and the above amounts do not include transaction prices related to unsatisfied performance obligations with an initially expected remaining period of one year or less.
As of March 31, 2023, the total transaction price allocated to the remaining performance obligations is 2,263 million yen. The remaining performance obligation is related to construction contracts for some Parking Systems and Environmental Systems business, and is expected to be recognized as revenue typically within two years depending on the progress of construction.
Also, there are no significant amounts not included in the transaction price in the consideration arising from the contract with the customer.
Fiscal Year ended March 31, 2024 (April 1, 2023 to March 31, 2024)(a) Balance of contract assets and contract liabilities, etc.
Millions of Yen
2024

Thousands of U.S. dollars
2024

Receivables generated from contracts with customers (Balance at the beginning of the year)¥29,703$196,189

Receivables generated from contracts with customers (Balance at the end of the year)¥33,453$220,958

Contract assets (Balance at the beginning of the year)¥1,254$8,283Contract assets (Balance at the end of the year)¥2,585$17,074

Contract liability (Balance at the beginning of the year)¥5,186$34,254

Contract liability (Balance at the end of the year)¥6,979$46,096

On the consolidated balance sheet, contract assets are recorded in "Notes and accounts receivable—trade and contract assets", and contract liabilities
are recorded in "Other current liabilities".
Contract assets are unbilled accounts receivable related to revenue recognized based on progress measurement in construction contracts for some
Parking Systems and Environmental Systems businesses, and are transferred to trade receivables at the time of customer acceptance. Consideration
for these performance obligations is generally received within one year after the performance obligation is satisfied, according to separately determined payment conditions, and does not include any significant financing components.
In addition, there are no significant financial factors in the receivables arising from contracts with the Company group's customers.
Contract liabilities are primarily customer advance payments in contracts that continue to provide services. Of the outstanding contract liabilities atthe beginning of the period, the amount of revenue recognized in the current consolidated fiscal year is 3,835 million yen.
Also, the amount of revenue recognized from performance obligations that have been satisfied(or partially satisfied) in previous periods, are immaterial.
(b) Transaction price allocated to residual performance obligations
The Company group applies practical expedients, and the above amounts do not include transaction prices related to unsatisfied performance obligations with an initially expected remaining period of one year or less.
As of March 31, 2024, the total transaction price allocated to the remaining performance obligations is 3,242 million yen. The remaining performance obligation is related to construction contracts for some Parking Systems and Environmental Systems business, and is expected to be recognized as revenue typically within two years depending on the progress of construction.
Also, there are no significant amounts not included in the transaction price in the consideration arising from the contract with the customers.

33

23. Segment Information(1) Outline of reporting segments
The reporting segments are defined as those business units which constitute the Company and from which separate financial information can be obtained.
The reporting segments are periodically reviewed by the Company's highest decision-making body to determine the allocation of management resources andevaluate financial results.
The Company maintains several business units at its head office, separated into product and service types. The role of these business units is to formulate
and implement domestic business strategies for similar types of products and services. In overseas business, meanwhile, local subsidiaries in each region
develop strategies in their respective business fields in cooperation with the relevant business unit at its head office and carry out business activities in accordance with such strategy.
Based on the above, the Company divides its business into two segments, from which separate financial information can be obtained on a consolidated
basis: the Time Information System business and the Environment System business. The operating results of these two segments are periodically reviewed by
the Company's highest decision-making body to determine the allocation of management resources and evaluate financial results.
As described above, the Company's reporting segments consist of the Time Information System business and the Environment System business.
The Time Information System business and the Environment System business manufacture and sell the following products:

Business segment

Time Information
System business

Sales category

Principal products

Information Systems

Time & Attendance (T&A), Human Resource (HR) systems, payroll information systems, access control, proximity IC card solutions, system time
recorders, T&A and HR and payroll ASP services, time distribution andauthentication services (digital time stamps)

Time Management Products

PC-linked time recorders, online time recorders, computerized time recorders, standard electronic time recorders, electronic time stamps, patrol
recordersParking Systems

Automatic fee settlement systems, access control systems, parking lot
management systems, bicycle parking lot management systems, automatictime registers, parking tower management systems, Internet-based parking guidance systems, commissioned parking lot management business

Environmental Systems

Industrial vacuum cleaners, standard dust collectors, mist collectors, fume
collectors, large dust collection systems, deodorization systems, hightemperature hazardous-gas removal systems, pneumatic powder conveyance systems, environmental equipment monitoring/maintenance support
systems, industrial air purifiers

Clean Systems

Commercial vacuum cleaners, automatic floor scrubbers, robotic floor
scrubbers, road and industrial sweepers, high-speed burnishers, polisher chemical products, supplies and accessories, wooden floor sanding
machines, consigned janitorial management services, electrolytic watercleaning systems, alkaline electrolytic water

Environment
System business(2) Methodology for determining Net Sales, Profit/Loss, Assets, Liabilities, and other Line Item amounts by reporting segment
The accounting methods of the reported business segments are in accordance with the accounting policies adopted to prepare the consolidated financial
statements.
Profits for the reporting segments are reported at the operating profit level.
Intersegment internal earnings and transfers are based on prevailing market prices.

34

(3) Sales, profits or losses, assets and other items by reportable segments
Millions of Yen
2023
Reportable segments
Time information Environment
system business system businessNet sales:
Sales to third parties
Intersegment sales and transfers
Total
Segment profit or loss
Segment assets
Depreciation and amortization
Investment in equity-method affiliates
Increase in tangible and intangible fixed assets¥98,903–
98,903
14,92779,509
7,773
2,331
9,363

¥33,906–
33,906
4,705
30,935
748
–
781

Total
¥132,810–
132,810
19,632
110,4448,521
2,331
10,145

Millions of Yen
2024
Reportable segments
Time information Environment
Total
system business system businessNet sales:
Sales to third parties
Intersegment sales and transfers
Total
Segment profit or loss
Segment assets
Depreciation and amortization
Investment in equity-method affiliates
Increase in tangible and intangible fixed assets¥116,840–
116,840
19,02992,044
8,979
2,410
11,711¥36,024–
36,024
4,548
30,330784–
1,887¥152,864–
152,864
23,578122,374
9,763
2,410
13,599Adjustments/
Eliminations

Consol:dated–––(¥3,844)
60,806496–
257¥132,810–
132,810
15,787
171,250
9,017
2,331
10,402Adjustments/
Eliminations–––(¥4,010)62,210493–
366

Thousands of U.S. dollars
2024
Reportable segments
Adjustments/
Time information
Environment
Eliminations
Total
system business system businessNet sales:
Sales to third parties
Intersegment sales and transfers
Total
Segment profit or loss
Segment assets
Depreciation and amortization
Investment in equity-method affiliates
Increase in tangible and intangible fixed assets$771,731–
771,731
125,687
607,952
59,306
15,91877,351$237,939–
237,939
30,040200,330
5,178–
12,464$1,009,670–
1,009,670
155,733
808,283
64,485
15,91889,822

Notes
Adjustments/Eliminations represent general and administrative expenses and assets related to administrative divisions
which are not allocated to each reportable segment.

35

–
–
–
($26,486)
410,898
3,256
–
2,417

Consol:dated¥152,864–
152,864
19,567
184,585
10,256
2,410
13,965

Consol:dated$1,009,670–
1,009,670
129,240
1,219,188
67,741
15,91892,239[Related Information]
Fiscal Year ended March 31, 2023 (April 1, 2022 to March 31, 2023)(1) Information by product and service
Since similar information is disclosed in the segment information the description is omitted.

(2) Geographic Segments(a) Net salesJapan¥77,492

America¥16,919

Korea¥16,060

Millions of Yen
Total¥132,810

Others¥22,338

Note: Sales are based on the location of customers and are classified by country or region.
(b) Tangible fixed assets
Japan¥17,621

China¥6,292Millions of Yen
Total¥29,135

Others¥5,221(3) Information by major customer
Not applicable because there is no single customer who accounts for more than 10% of net sales shown in the consolidated statement of income.

Fiscal Year ended March 31, 2024 (April 1, 2023 to March 31, 2024)(1) Information by product and service
Since similar information is disclosed in the segment information the description is omitted.

(2) Geographic Segments(a) Net salesJapan¥85,909

America¥18,829

Korea¥21,154

Others¥26,970

Millions of Yen
Total¥152,864

Others$178,137

Thousands of U.S. dollars
Total$1,009,670

Note: Sales are based on the location of customers and are classified by country or region.

Japan$567,431(b) Tangible fixed assets
Japan¥17,677Japan$116,757

America$124,366

Korea$139,723

China¥7,200

Others¥6,218Millions of Yen
Total¥31,096

North America$47,556

Others$41,070

Thousands of U.S. dollars
Total$205,390(3) Information by major customer
Not applicable because there is no single customer who accounts for more than 10% of net sales shown in the consolidated statement of income.

36

[Information on "Impairment loss of fixed assets" by reportable segments]
Not applicable for the year ended March 31, 2023 and 2024.

[Information on both "Amortization of goodwill" and "Unamortized balance" by reportable segments]
Information on both "Amortization of goodwill" and "Unamortized balance" by reportable segments as at and for the years ended March 31, 2023 and 2024
are as follows:
Millions of Yen
2023

Amortization of goodwill
Unamortized balance

Reportable segments
Time Information Environment
System business System business
¥311
–
1,214
–

Amortization of goodwill
Unamortized balance

Millions of Yen
2024
Reportable segments
Time Information Environment
Total
System business System business
¥282
¥10
¥293
1,695
189
1,884

Amortization of goodwill
Unamortized balance

Thousands of U.S. dollars
2024
Reportable segments
Eliminations/Time Information
Environment
Corporate
Total
System business System business$1,863$66¥1,935––
11,196
1,248
12,444[Information on "Gain on negative goodwill" by reportable segments]
Not applicable for the year ended March 31, 2023 and 2024.

[Information on "Related Party Information"]
Not applicable for the year ended March 31, 2023 and 2024.

37

Total
¥311
1,214

Eliminations/
Corporate––

Eliminations/
Corporate
–
–

Total
¥311
1,214

Total
¥293
1,884

Total
$1,935
12,444

24. Per Share Data
Yen
2023
¥1,656.43
154.42

Net assets per share
Net income per share

U.S. dollars
2024¥1,779.42
182.482024$11.753
1.21

Note1: Details for the diluted net income per share are not stated, because there are no potential shares.
Note2: The basis for these calculations is as follows:
Millions of Yen
2023¥11,288
11,28873,104,399

Net income in the consolidated statement of income
Net income relating to common stock
Average number of shares of vcommon stock outstanding during the year2024
¥13,141
13,14172,019,048

Thousands of
U.S. dollars
2024$86, 797
86,797Note3: The basis for these calculations is as follows:
Millions of Yen
2023¥121,638
882(882)
120,756
72,901,514

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

2024¥128,103502(502)
127,600
71,709,283

Thousands of
U.S. dollars
2024$846,123
3,316(3,316)
842,,801

Note4:
Shares remaining in trust of the Director's Compensation BIP Trust and the Employee Stock Ownership Plan (J-ESOP) recognized in shareholders' equity
as treasury stock are included in treasury stock to be deducted in the calculation of the average number of shares outstanding over the period to calculate
net income per share and also included in treasury stock to be deducted in the calculation of the number of shares of treasury stock at the end of theperiod to calculate net assets per share. The average number of shares of such treasury stock outstanding over the period that was deducted to calculate net
income per share was 398,794 shares for the previous fiscal year and 639,679 shares for the current fiscal year. The number of shares of treasury stock at
the end of the period that was deducted to calculate net assets per share was 398,219 shares for the previous fiscal year and 793,884 shares for the current
fiscal year.

38

25. Significant Subsequent Events[Acquisition of treasury stock]
On April 25, 2024, the Board of Directors of the Company approved the resolution to acquire treasury stock pursuant to theprovisions of Article 156 of the Companies Act as applied by replacing certain terms under the provisions of Article 165, Paragraph 3 of the same Act.
(1) Reasons for acquisition of treasury stock
While strengthening shareholder returns, treasury stock is acquired in order to flexibly carry out its capital management strategies and to improve capitalefficiency in response to changes in the business environment.

(2) Details of the acquisition① Class of shares to be acquired:Common stock of the Company② Total number of shares to be acquired:Up to 500,000 shares (upper limit)[Representing 0.69% of the Total number of shares issued (excluding treasury stock)]③ Total acquisition cost

:Up to JPY2,000 Million (upper limit)[Up to 13,210 Thousands of U.S. dollars]④ Acquisition period:From April 26, 2024 to July 31, 2024

39

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

71 Sales Offices Located in major cities,
including

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

SAGAMIHARA Factory
HOSOE Factory

Board of Directors
Chairman & Representative Director(Full-time) Audit & Supervisory Board Member

Hiroyuki TSUDA
President & Representative Director

Masahiko MORITA
Tomonori KITAMI

Manabu YAMAZAKI(Outside) Audit & Supervisory Board Member

Director & Executive Operating Officera

Kunihiro IHARA

Hanae NAKAYA
Naofumi NAGAKAWA

Director & Managing Operating Officer

Managing Operating Officer

Yoshihiko HATA

Susumu IKOMA

Director & Operating Officer

Operating Officer

Tatsuo MAEKAWA
Nobuyuki HORIMOTO
Kenichiro SAKAGUCHI
Aki MORIGUCHI
Eiji IWATA
Kazuhiro ITOBert PEIRSMAN

Myeong-Jin JEON
Toshiyuki NISHIKIORI
Takeya HAYASHITANI
Tetsuji ISHIKAWA
Masashi NABESHIMA

Fujinori TAZO
(Outside) Director

Kiyoshi KAWASHIMA
Michinobu OMORI
Sumie WATANABE

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

9

14

10

10. HIRE TECHNICIANS GROUP LTD.
11. AMANO EUROPE HOLDINGS, N.V.
12. AMANO EUROPE, N.V.
13. AMANO TIME&PARKING SPAIN S.A.
14. HOROQUARTZ S.A.
15. HOROQUARTZ MOROCCO S.A.
16. AMANO KOREA CORPORATION
17. WAYTOTEC, INC.
18. AMANO INTERNATIONAL TRADING(SHANGHAI)CO.,LTD.

19. AMANO SOFTWARE ENGINEERING (SHANGHAI)CO.,LTD.
20. AMANO PARKING SERVICE LTD.
21. AMANO TECHNICAL SERVICE LTD.
22. AMANO MALAYSIA SDN.BHD.
23. AMANO TIME&AIR SINGAPORE PTE.LTD.
24. PT.AMANO INDONESIA
25. AMANO THAI INTERNATIONAL CO.,LTD.
26. AMANO TIME & AIR (THAILAND) CO.,LTD.
27. AMANO VIETNAM CO.,LTD.

11,12
6

13
16,17

15

AMANO CORPORATION

18,19
20,21
25,26
22

8

27
23
24

40

4
2,3
5

7
1

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