FINANCIALREPORT
April 2015 - March 2016

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

2. New Medium-Term Business Plan
Amano and all of its Group companies continue to pursue the Group’s tradition of continuing to evolve in response to the changes of the times, while remaining committed
to the following four immutable strategies of the Amano Group.
(i) Emphasis on the Time & Ecology business fields and enhancement of our core business(ii) Being a niche leader in the business fields in which we excel(iii) Ceaseless restructuring(iv) Management based on cash flow
In accordance with these four fundamental strategies, Amano launched a new medium-term business plan. An outline of the plan is set out below.
[1] Basic Policies
Under its new medium-term business plan, aiming to become a 100-year Company,
the Group will work to address the following four priority challenges with “ChallengeOurselves to Advance to a New Stage” as its management concept:(i) Expansion of business: Increase sales and achieve an operating profit ratio of 10%(ii)	Improvement in management efficiency: Increase earnings capacity aiming toachieve an ROE (return on equity) of 10%(iii)	Reinforcement of consolidated business management: Increase the ratio of consolidated operating profit to non-consolidated operating profit by 10% by growing group companies based in Japan and abroad (*)(iv)	Evolution of corporate governance: Enhance the environment for internal controls for the entire Amano Group(*) S tarting from the fiscal year ending March 31, 2017, the ratio of consolidated net sales tonon-consolidated net sales will be replaced with the ratio of consolidated operating profit
to non-consolidated operating profit.

Under these basic policies, the Company will carry out the following measures.

11. North American and European markets
North America: In the Parking Systems business, we will further expand business bystepping up sales of Amano McGann’s new systems and by improving our ability topropose solutions through enhancement of peripheral services. In the Information System business, we will strive to expand operations by increasing sales of a new seriesof devices by Accu-Time Systems Inc. in North America and by developing cloud services. In the Clean Systems business, we will strengthen the business foundation andscale up operations of the wooden floor sanding equipment division of Amano Pioneer
Eclipse Corp. In the Environmental Systems business, we will boost sales of standard
equipment to Japanese companies operating outside Japan, centering on automobilerelated businesses.
Europe: In the Information Systems business, we will continue to enhance Horoquartz’s
French customer base and will strive to permeate and expand the markets in Belgium
and Germany. In the Parking Systems business, we will strive to expand operations byaccelerating the deployment of bar code system products and newly providing commissioned parking lot management service.
2. Asian, Latin American and other emerging markets
In the Asian region, we will aim to expand Parking Systems operations by acquiring newcustomers in the low-end market segment and bolstering commissioned parking lot management services. In the Environmental Systems business, we will strengthen our engineering capabilities as well as sales and service systems for Japanese companies operating in
Asia by making use of the ties between our Group companies across Asia and our head
office in Japan. We will also expand our local production capabilities in order to enhancecost competitiveness.
In Central and South America, we will continue to develop markets for the Information Systems, Parking Systems, and Environment System businesses by setting up a local subsidiary
in Mexico with a view to expanding operations in these regions in the future.
3. Japanese market
Japan: We will reinforce ties among Group companies and strengthen our capacity
to provide holistic solutions (which cover hardware, software, and services) across all
business fields both qualitatively and quantitatively. We will also increase our stable ofcustomers by locking in existing customers as well as our flow of customers by acquiring new customers.
[2] Numerical targets
We are aiming to achieve ¥122.0 billion in net sales and ¥13.0 billion in operating
profit for the fiscal year ending March 31, 2017, which is the final year of the plan.

Numerical targets

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

FY 2014(ending March 2015)
Results
AmountYoY (%)
109,837
7.5%
9,357
6.0%
8.5%
–
10,189
8.1%
6,794

28.2%
2

FY 2015(ending March 2016)
Amendment
AmountYoY (%)
119,506
8.8%
12,942
38.3%
10.8%
–
13,665
34.1%
8,405

23.7%

FY 2016(ending March 2017)
Amount122,000
13,00010.7%
13,500YoY (%)
2.1%
0.4%–(1.2%)

8,800

4.7%

3. Basic Policy on Distribution of Profits and Payment of Dividends forThis Fiscal Year and the Next
Amano places great importance on its policy for the payment of dividends to shareholders. Fundamental to this is its policy for the return of profit to shareholders, based on
maintaining a stable ordinary dividend of ¥26 annually (interim dividend of ¥13 andyear-end dividend of ¥13), together with appropriate results-based distributions of profitsand flexible purchasing of treasury stock. The Company aims to maintain a payout ratioof at least 40% on a consolidated basis and a ratio of dividend to net assets of at least 2.5%.
In line with this policy, taking into account our current-year operations results, we plan to
pay a year-end dividend of ¥28 per share, an increase of ¥5 per share compared with theamount paid at the end of the previous year. As a result, the annual per-share dividend
will be ¥48 (including the ¥20 per share paid as the interim dividend). This corresponds
to a dividend payout ratio of 43.7% and a 3.9% ratio of dividends to net assets on a consolidated basis.
With regard to the dividend for the next fiscal year, in line with our Basic Policy on Distribution of Profits and in view of our Outlook for Fiscal Year Ending March 31, 2017, we
aim to pay an annual per-share dividend of ¥46 (with an interim dividend of ¥23 and a
year-end dividend of ¥23).
Retained earnings will be earmarked to fund effective investment aimed at the fundamental enhancement of the Company’s capacity to conduct its business operations. This will
include the expansion and strengthening of existing business fields, strategic investment
in growth fields, and spending on research and development, as well as the rationalization of production plants and equipment for the purpose of reducing costs and further
improving product quality.

Izumi NAKAJIMA
President
Representative Director

3Analysis of Business Results
Business Results in the Year Ended March 31, 2016

During the fiscal year under review,
although overseas economies remained unstable due to the slowdowns in emerging market economies and fluctuations in the priceof crude oil, the Japanese economy
appeared to be on a firm footing as
corporate profits and conditions in
the jobs market improved steadily,
thanks partly to the weak yen, while
capital investment continued to berobust.

As a result of the above, during the
fiscal year under review, the Company recorded sales of ¥119,506
million, up by 8.8% year-on-year. Operating profit increased by 38.3% to¥12,942 million, ordinary profit went
up by 34.1% to ¥13,665 million, andnet income, which is attributable toparent company shareholders, increased by 23.7% to ¥8,405 million,
resulting in increases in both income
and profit.

Amid this business environment, theAmano Group worked on global
marketing and product deployment
as well as the enhancement of its
capacity to provide holistic solutions,based on its new medium-termbusiness plan launched in April 2014.
Under this plan, the Group set forth
the management concept of “Challenge to a New Stage,” a concept
aimed at making the organization
a “100-year company.” The Amano
Group also concentrated on thoroughly uncovering customer needs
and strove to reduce the costs ofgoods sold (COGS) and selling,
general, and administrative (SG&A)
expenses.

The following is a breakdown ofsales by business division.

Sales by business division(Unit: Millions of yen)

FY2014
Category

FY2015

Change(April 1, 2014–March 31, 2015) (April 1, 2015–March 31, 2016)
AmountRatio (%)

AmountRatio (%)

Amount%Information Systems

23,55821.5

25,512

21.3

1,953

8.3

Time Management Products

4,100

3.7

4,165

3.5

64

1.6

Parking Systems

51,81747.2

55,784

46.7

3,966

7.7

Subtotal

79,47772.4

85,462

71.5

5,984

7.5

Environmental Systems

20,63918.8

21,830

18.3

1,190

5.8

Clean Systems

9,720

8.8

12,213

10.2

2,493

25.6

Subtotal

30,36027.6

34,044

28.5

3,683

12.1

Total

109,837

100.0

119,506

100.0

9,668

8.8

Time Information System business:

Environment System business:

4Time Information System business• Information Systems:
Time & attendance (T&A), payroll,human-resource management, access
control, and cafeteria systems• Time Management Products:
Time recorders and time stamps• Parking Systems:
Parking and bicycle-parking space
management systems, and commissioned parking lot management service

Information Systems
This business division, against the
backdrop of improved corporate
performance domestically, saw a
growing trend of investment in information systems in relation to theSocial Security & Tax Number (“MyNumber”) system and measures toprevent leaks of personal information.
In response to these market conditions, the Company added access
control and security to the list of its“3-in-1” proposal comprising time
& attendance (T&A), payroll, andhuman-resource management, thus
striving to bolster its activities toprovide total solutions from systemownership to system use.
Domestic sales for the current term
were as follows. Terminal device
sales increased by ¥633 million(10.0%) year-on-year and softwaresales increased by ¥159 million(4.5%). The increase in terminal device sales was a result of multiple orders for large replacement projects,
while the higher software sales was
attributable to the increased orders
of T&A systems for the small- andmedium-sized enterprise markets.

Overall overseas sales increased by¥713 million year-on-year (7.9%) as
the sales of Accu-Time Systems Inc.
in Nor th America increased while
the sales of Horosmart S.A. in Europe decreased due to the disposalof a group company.
As a result of the above, sales in thisbusiness division totaled ¥25,512
million, representing an increase of
8.3% year-on-year.

Time Management ProductsThis business division continues
to cope with the current trend
toward lower prices as well as theneed for improved functions, although there is a constant demand
for standard machines.
In this mar ket environment, theCompany has been working on expanding its customer base throught h e “ U s e r- c l u b ” ( a f e e - b a s e d
ser vice for members), as well as
concentrating on expanding salesof time recorders equipped withaggregation software compatible
with PCs, which offers improved
usability and functionality.
Domestic sales of standard machines for the current term decreased by ¥31 million year-onyear (2.5%), and domestic salesof supply goods increased by ¥85
million (10.5%). Overall overseas
sales increased by ¥15 million(1.2%) as sales in Nor th Americarose , par tly due to foreign-exchange effects.
As a result of the above , sales
in this business division totaled¥4,165 million, representing an increase of 1.6% year-on-year.

5

Parking Systems
To respond to the increasingly diverse needs of parking lot management in Japan, the Parking Systems
business division has been working
on improving the efficiency andreducing the cost of par king lot
management, increasing the level ofconvenience for parking lot users,and ensuring safety and security inparking lots.
In response to these market cond i t i o n s , t h e C o m p a ny f u r t h e rstrengthened its cooperation withmajor parking lot management firms
and, at the same time, concentrated
on offering various services to small
to medium-sized parking lot management firms through its parking
lot data centers. The Company also
worked to improve the functionality
and usability of its system equipment and made efforts to expand
into new markets, such as bicycle
parking systems, security-gate systems and toll road systems, as wellas making new proposals for parking
lot management in cooperation witha domestic Group company.
Domestic parking equipment sales
decreased by ¥679 million (3.7%).
Domestic revenue from maintenance contr acts and supplies
services increased by ¥366 million(4.0%). The commissioned parking
lot management business of Groupsubsidiary Amano Management Service Corporation has been steadily
expanding, and the number of parking spaces under management increased by 31,500 (10.1%) from theend of the previous fiscal year.
Overall overseas sales increasedby ¥3,592 million year-on-year(23.4%). Sales for Amano McGann,
Inc. in North America rose due tothe increased orders of new systems, sales in Europe increased dueto the strong performance of bar
code systems, and sales in the Asian
region increased as sales in Korea
and Hong Kong grew alongside
the steady expansion in the commissioned parking lot managementbusiness.
As a net result of the above, theParking Systems business division
provided sales totaling ¥55,784 million, up by 7.7% year-on-year.

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

Environmental Systems
For this business division, capital investment by Japanese companies remained firm domestically and strong
aboard.
In this mar ket environment, theCompany focused on capturing
demand for its standard equipment
by strengthening proposals in Japan,
while seeking to win increased orders from customers in the pharmaceutical, foods, and cosmetics
markets. Meanwhile, with the aimof attracting demand from Japanesecompanies operating overseas, theCompany enhanced cooperation
with overseas Group companies;
reinforced its platforms for engineering, sales and services; and furthermore, endeavored to achieve
greater cost competitiveness by
expanding its local procurement.
During the current term, domestic
sales of standard equipment increased by ¥1,021 million (15.7%),
sales of lar ge-scale systems increased by ¥300 million (4.8%) andsales of maintenance contracts andsupplies services increased by ¥192
million (5.3%) year-on-year.
Overall overseas sales decreased by¥313 million year-on-year (7.5%) as
sales in the Asian region declined,
affected by the slowdown in the
Chinese economy.
As a result of the above, sales of thisbusiness division totaled ¥21,830
million, up by 5.8% year-on-year.

Clean Systems
This business division is seeing a
growing need for high-value-added
cleaning equipment and peripheral
cleaning work, as well as aesthetic
maintenance services in Japan, although the prolonged corporate
restraints on cleaning management
costs still continue.
To cope with this market environment, the Company focused onstrengthening holistic cleanliness solutions by incorporating peripheral
cleaning work and on strengthening
proposals for the factory market. In
addition, the division worked on expanding sales of scrubbers that realize higher safety levels and improved
usability with higher work efficiency.
Domestic sales for cleaning equip-

6

ment increased by ¥270 million(14.3%) year-on-year, revenue frommaintenance contracts and supplies
services decreased by ¥346 million(11.3%), and revenue from commissioned cleaning services decreasedby ¥633 million (41.3%).
Overall overseas sales increased by¥2,243 million year-on-year (53.8%),
as sales for Nor th America grewowing to the continued contribution from the wooden floor sanding
equipment business.
As a net result of the above, salesof this business division totaled¥12,213 million, up by 25.6% yearon-year.

lion in accrued income taxes and anincrease of ¥922 million in short-termbank loans. Fixed liabilities decreasedby ¥1,205 million year-on-year. Thiswas mainly due to a decrease of¥1,482 million in long-term bankloans.

Analysis of Financial Condition(i) Assets, liabilities, and net assets• Assets
Total assets as of March 31, 2016
amounted to ¥136,965 million, up by¥5,405 million from the previous fiscal
year-end. Current assets increased by¥4,242 million year-on-year. This was
attributable primarily to an increase of¥1,715 million in trade notes and accounts receivable, an increase of ¥684
million in other current assets resulting
from higher advance expenses, among
other factors, and an increase of ¥330
million in raw materials and supplies.
Fixed assets increased by ¥1,163 million year-on-year. The principal factors
behind this was an increase of ¥997
million in intangible fixed assets resulting from higher software in progress,
among other factors, which exceeded
the decrease of ¥431 million in tangible fixed assets.

• Net Assets
Total net assets as of March 31, 2016
amounted to ¥95,606 million, up by¥3,457 million from the previous fiscal
year-end. This was attributable primarily to an increase of ¥5,109 million inshareholders’ equity resulting from therecording of net income attributableto owners of the parent company,
despite a decrease of ¥1,692 million
in accumulated other comprehensive
income owing to lower foreign currency translation adjustments, among
other factors.
(ii) Cash Flows
Consolidated cash and cash equivalents decreased by ¥2,199 million
from the previous fiscal year-end to a
total of ¥32,725 million as of March
31, 2016. The status of each type ofcash flow at year-end and the underlying factors are as follows.

• Liabilities
Total liabilities as of March 31, 2016
amounted to ¥41,359 million, up by¥1,947 million year-on-year. Current
liabilities increased by ¥3,153 million
year-on-year. This was attributableprimarily to an increase of ¥1,036 mil-(1) Cash flow from operating activities
Net cash provided by operating activities totaled ¥13,420 million. This

was attributable primarily to income
before income taxes amounting to¥13,314 million, and depreciation andamortization amounting to ¥4,415
million, despite income taxes payments amounting to ¥4,214 million
and an increase in trade notes and accounts receivable of ¥2,049 million.
(2) Cash flow from investing activities
Net cash used in investing activities
totaled −¥6,608 million. This was
mainly because, despite the recording of ¥10,364 million in proceedsfrom withdrawal of time deposits and¥2,400 million in proceeds from redemption of securities, the Company
recorded expenditures amounting
to ¥10,133 million in time deposits,¥3,270 million to purchase intangible
fixed assets, ¥2,906 million to purchase tangible fixed assets, and ¥2,000
million to purchase securities.
(3) Cash flow from financing activities
Net cash used in financing activities
amounted to −¥4,308 million. Thiswas chiefly due to the recording ofexpenditures amounting to ¥3,293
million in payment of dividends,¥1,643 million in repayment of finance lease obligations, and ¥341 million in repayment of short-term bankloans, despite the recording of ¥1,227
million in proceeds from sale andleaseback.

Reference: Trend of cash flow indicators
As of Mar. 31, 2012

As of Mar. 31, 2013

As of Mar. 31, 2014

As of Mar. 31, 2015

As of Mar. 31, 2016

Equity ratio (%)

69.6

69.8

67.6

69.8

69.5

Fair value equity ratio (%)

56.9

62.3

66.5

83.7

99.4

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

50.2

34.7

37.3

52.2

25.5

Interest coverage ratio

158.1

207.7

219.7

122.9

292.2

Notes :	Equity ratio: Equity capital/Total assets
Fair value equity ratio: Gross market capitalization/Total assets
Ratio of cash flow to interest-bearing liabilities: Interest-bearing liabilities/Cash flow from operating activities
Interest coverage ratio: Cash flow from operating activities/Interest payments
Assumptions
		* All indicators are calculated on the basis of consolidated financial values.
		* Gross market capitalization is calculated by multiplying the closing price of the Company’s shares at the year-end by the number of shares of common stock issued and outstanding at the year-end (less treasury stock).
		* The term “cash flow from operating activities” refers to cash flow from operating activities posted under the consolidated statements of cash flows. The term “interest-bearing liabilities” refers to those liabilities stated in the consolidated balance sheets on
which interest is paid. Interest payments equate with the interest paid recorded in the consolidated statements of cash flows7Outlook for the next fiscal
year ending March 31, 2017
In the next fiscal year ending March
31, 2017, the Japanese economy will
likely be characterized by a growing uncer tainty about the future,with capital spending and personal
consumption remaining lackluster,emerging market economies such as
China experiencing a slowdown, andforeign exchange markets continuing
to be unstable.
Amid this business environment,
Amano Corporation and its Group
companies continue to emphasize
the following strategies: 1) emphasis
on Time & Ecology business domains, and enhancement of corebusiness; 2) becoming a niche leader
in the business domain in which we
excel; 3) ceaseless restructuring; and4) management based on cash flow.
In line with these four fundamental
strategies, we will work to address
the impor tant challenges in the
new medium-term business plan
described in “Management Policy”
on page 1 with a view to maximizing the corporate value of Amano
Corporation while aiming to become a 100-year Company having“Challenge to a New Stage” as its
management concept.
The following business results areprojected for the next fiscal year
ending March 31, 2017: net sales of¥122,000 million, operating profitof ¥13,000 million, ordinary profitof ¥13,500 million, and net income

attributable to parent company
shareholder s of ¥8,800 million.
These projections assume currency
exchange rates of ¥109 to the US
dollar and ¥122 to the euro.

Operating and Other Risk Factors
Matters relating to the qualitative
infor mation contained in thesesummary financial statements andrelating to the consolidated financial
statements that could be envisaged
as having a possible material impact
on investors are described below.
Ever y effor t are made to identify
factors that may now or in the future pose a risk to the undertakingof business by the Amano Group,and these risk factors are then eliminated or otherwise managed in thecourse of business.
Forward-looking statements are current as of the date of the releaseof these financial results (April 25,2016).
(i) Impact on earnings due tochanges in the business environment
The Amano Group uses the unique
technologies and know-how it has
accumulated to provide customers
with high-quality products, services
and solutions, thereby gaining large
market shares in each sphere ofbusiness in Japan, Nor th America,
Europe, and Asia, and developing its
business globally.
In the year ended March 31, 2016,8

the Time Information System business accounted for 71.5% of total
sales, and the Environment Systembusiness accounted for 28.5%. Before the deduction of unallocatedexpenses, the Time Information System business contributed 72.6% tooperating profit, while the Environment System business contributed
27.4%. In terms of weighted averagesales over the last five years, theTime Information System businessaccounted for 72.7% of total sales
and 75.3% of operating profit.
One future r isk factor is that if
market expansion is forecast for abusiness activity within the Time Information System business segment(which accounts for a large proportion of the Group’s business) forsuch reasons as a significant change
in the demand str ucture or thecreation of a new market, entities
in other industries or other powerful competitors may be tempted toenter the market. In such an event,if a competitor were to enter with
innovative products or solutions
that surpass Amano’s, the Amano
Group’s market advantage would
decline, which may have a material
impact on its business performance.
(ii) Fluctuations in exchange rates
The Group engages in businessactivities on a global scale and has
production and sales bases overseas.
In view of this, the Group’s businessresults may be impacted by fluctuations in exchange rates when theproceeds for overseas transactions
are converted into yen.
(iii) Information security
In the course of providing systemsolutions and developing cloud business ser vices (e.g., ASP, SaaS, andhosting services), the Amano Grouphandles confidential information,such as personal information concerning, or provided by, customers.
In view of this, the Company has
strengthened and thoroughly implemented security control measures
based on the Information Security
Management Rules. Specifically, theCompany has implemented measures to protect confidential information (e.g., encr ypting hard disk
drives and external media) as wellas provided periodic staff training
through e-learning. Furthermore, theCompany obtained the Privacy Markcertification in February 2014 andhas implemented all possible measures to ensure information security,
including super vision of ser viceproviders and thorough compliancewith internal rules. Nevertheless, theoccurrence of an unforeseen situation that results in loss or leakageof confidential or personal information as described above could havean adverse material impact on theGroup’s business performance due
to factors such as loss of confidence.

er ty. The Amano Group continues
to take necessary measures at ordinary times comprising: 1) impositionof requirement for employees tocarry a disaster emergency contact
card at all times; 2) development ofemergency contact networks andpersonnel safety check system; 3)relocation of file servers to external
data centers; 4) development ofa preparedness for setting up thedisaster management headquarters
at the time an emergency occurs.
However, in the event of a natural
disaster, the Group may temporarily lose the ability to continue toperform its operating activities due
to damage to its sales business sites
and production bases, or to employees experiencing difficulties in carrying out their duties.
(v) Overseas business development
The Amano Group has been developing its business globally in Japan,
Nor th America, Europe, and Asia.
Therefore, there is a possibility thata situation may arise in which business operations are disrupted dueto the application of unique laws, ordinances, or regulations or social disorder due to political disturbances,war, or terrorism, etc. in countries orregions where the Group conducts
business, which may adversely impact the Group’s business performance.

(iv) Natural disasters

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

1) Time Information System business•Information Systems
The Information Systems business has
seen potential demand for the time- andattendance-management system becoming
actual demand. This system enables the employer to develop or establish a work time
management framework as an initiative tocomply with “Perform Optimal Work TimeManagement” at a time when the Japanese
government is leading the efforts to monitor companies with the aim of eliminating“Unpaid Overtime Work” and “Extended
Wor k Hour s (Overwor k).” Moreover,against the background of the revision to the
Labor Standards Act, which aims to facilitate
diverse ways of working to improve laborproductivity, we are likely to experience a
growth in demand for corporate system
replacements, as well as cloud- and smart
device-based systems.
In response to these market conditions,
we will roll-out the new software product“Next-Generation Human Resource andLabor Management Package TimePro-NX,”
as a product targeting the small- to mediumsized enterprise market, to further step up
our holistic solutions covering not only timeand attendance management, but also human resource and payroll management. In
such ways, we will expand our customer

Natural disasters (e.g., large-scale
earthquakes, windstorms, or floods)
may damage human lives or prop-base through providing a “One Stop Service,” from hardware services through tosoftware and cloud services. In the medium-9

sized enterprise market, we will enter the

As for overseas markets, in the United

North, Central and South America, we havefinancial accounting market by tying up with

States, Amano McGann, Inc. will step up

established a local subsidiary in Mexico to

CREO CO., LTD. and work to expand op-

sales of new systems and strengthen solu-

continue expanding sales of standard equip-

erations with the aim of becoming a “mini-tion proposals by expanding and improving

ment products to Japanese-owned corpo-

ERP vendor” by enhancing software for T&A,

peripheral services to enlarge the market. In

rate customers operating locally, which arehuman resources, payroll, and accounting as

Europe, we will accelerate the deployment

mainly automobile-related companies.

well as strengthening our consulting salesof bar code system products while seeking

activities.

to expand operations through newly engag-

In overseas markets, we will expand and im-

ing in the commissioned parking lot manage-

prove our cloud services in Europe and thement services business. In Asia, we will aim

United States. Moreover, Horoquartz, S.A. of

to expand operations by developing new

France is aiming to expand into other mar-markets and bolstering the commissioned

kets in Europe, while Accu-Time Systems

parking lot management service business.

Inc. of North America intends to bolster its
customer base by expanding sales of its new2) Environment System businessseries of devices.

•Environmental Systems•Parking Systems
The Parking Systems business is witnessinga growth in the nation’s parking lot market
owing to the real estate market becoming
buoyant in advance of the 2020 Olympics. In
addition to the need for parking lot management cost reduction, ensuring of safety andsecurity in parking lots, and consideration of
the environment, the need to propose solutions to improve user convenience has been
increasing.
Given this market environment, we aim tobecome a “parking facility service provider”
by further strengthening tie-ups with major
parking lot management companies while
improving the functions and operability ofsystem equipment as well as providing various services through our parking lot data
center for small- and medium-sized parking
lot management companies. In addition,
we will strengthen and expand our efforts
related to facilities such as security gates, tollroads, and bicycle parking lots in order toexpand our business.

In Environmental Systems, companies’ capital
investment has remained solid in Japan andstrong abroad.
Given this market environment, in Japan wewill aggressively capture demand mainly forstandard equipment and expand sales in thepharmaceutical, food, and cosmetics markets,
which are expected to grow steadily. We will
also work to strengthen our engineering capabilities and comprehensive sales, includingthat of peripheral equipment, by tie-ups withindustrial equipment manufacturers with theaim of becoming a “global engineering multivendor.”In the overseas markets, we will further utilize the Philippines branch of Amano Time &Air Singapore Pte. Ltd. (ATAS) to strengthen
and enhance our overseas network, step-up
capabilities to provide engineering services
to Japanese-owned corporate customers
by strengthening the marketing and service
framework for them through collaborations
with Japan side and group companies, andimprove cost competitiveness by expanding
local procurement and assembly activities. In

10•Clean Systems
In the Clean Systems, while the trend ofcompanies trying to reduce cleaning costs
continues, amid the aging of sanitary workers
and an increase in the number of inexperienced workers, needs to improve safety andoperability of cleaning equipment have been
increasing. At the same time, the need formaintaining building aesthetics at low costhas also been increasing.
In response to these market conditions,
we will develop new markets for cleaningrobot products in Japan, develop the factorymarket more rigorously and expand salesof small-sized cleaning equipment targetingmini-sized supermarkets that have openedin urban areas and convenience store eatin corners that are growing in number, thus
bolstering our customer base in the country.
With the aim of becoming a “total cleanliness service provider,” we also promotecomprehensive proposals, including thosefor commissioned cleaning services and aesthetic maintenance.
In overseas markets, we will capitalize on the
demand of Japanese-affiliated distribution
companies opening up stores in the Asian
region and further scale up our business bystrengthening the operational foundation
for the wooden floor sanding equipment
division of Amano Pioneer Eclipse Corp. in
North America.

Topics
Information Systems
Accelerating information terminal
sales in the SME market
Strengthening Proposals for Cloud
solutions globally
In Japan, amid the stronger Governmentled initiatives encouraging companies totighten their monitoring of employee work
time, Amano’s information terminals andT&A software for the mid-sized companies
market, the “TimePro-VG”, is selling well.
With the aim to provide the latest humanresource management solution, in April
2016, Amano released a new T&A software, “TimePro-NX” for the SME market,
after a 10-year blank. The “TimePro-NX”
complies with the latest rules and is compatible to the various enterprise sizes, theindustries along with the varying system
environments,
In addition, for Cloud services, regional efforts to meet the local market needs areunderway globally. In Japan the T&A / HR
ASP business by Amano Business Solutions Corp. is expanding steadily. In North
America, Accu-Time Systems Inc. is providing a Cloud-based data collection service
through their information terminals and
ERP vendor systems. And in Europe, Horoquartz S.A. is making progress with the
SaaS version of their Workforce Management software.

Parking Systems
The “OPUS” series for the North
American market is strong!
Large projects increasing towards
the 2020 Tokyo Olympics year
The new “OPUS” series of North America
is steadily winning orders for airpor ts,
universities, and shopping centers etc. The
new system is highly rated for its ability tosupport both online and offline applications, 2-dimensional bar code tickets and avariety of payment methods.
On the other hand, in Japan, large-scale
development projects towards the 2020
Tokyo Olympics are increasing. In January
2016, the shopping center industry helda trade show “SC Business Fair 2016”, atwhich Amano exhibited the latest parking
solutions such as the gate-type parking systems, vehicle guidance systems, new parking fee discount systems, and LPR systems
along with a case model of an installation
at one of the latest large-scale shopping

center. The exhibits were well received andattracted much attention from the visitors.
For parking management services, Amano
will endeavor to strengthen its ability toprovide comprehensive solutions including
hardware, software and services placing
particular emphasis on the “Parking Web”,
a data service provided by the parking
data center.

floor sanding business is steadily expanding.
In addition, the strong wooden floor sanding business is creating a synergistic effectwith other businesses such as cleaning machines and chemicals, boosting the cleaning
business as a whole.
In Japan, the cleaning industry is struggling
with aging workers and labor shortage andagainst this background, Amano is strengthening its efforts to expand the sales of safeand efficient robotic vacuum cleaners andscrubbers. Amano plans to enhance its
lineup of robotic cleaners and develop theseries as mainstream products that reflect
the market needs.

SC Business Fair 2016

Environmental Systems
Standard equipment and large-scale
systems continue to be firm
The Mexican subsidiary is up andrunning
Capital expenditures by Japanese domestic
companies remains firm and sales for standard dust collectors along with large-scale
systems are positive. Amano has renewed its
flammable dust collectors specially designed
for explosive dust such as aluminum and has
introduced electric dust collectors dedicatedfor metal 3-D printers. By responding to newmarket needs, Amano shall continue its efforts to expand the market.
As for overseas, in January 2016, Amano
established a new subsidiary in Mexico,
AMANO TIME & ECOLOGY DE MEXICO
S.A. DE C.V. (abbr. AMX) in response to therapidly expanding auto industry. AMX is situated in Leon City Guanajuanto, which is thegeographical center of many Japanese companies located in the region. AMX plans toenhance its engineering capabilities, strengthen its sales and service regime, and strive toimprove cost competitiveness by increasing
local procurement, assembly and to build a
local supply chain.

Guanajuanto

AMANO TIME & ECOLOGY
DE MEXICO S.A. DE C.V.

Sanding Machine

Commercial
Robotic Vacuum
Cleaner “RcDC”

Robotic Floor
Scrubber“SE-500iX II”

Social Contribution Activities
Signed up for a partner membership to the “Kodomo Eco-Club”!
The “Kodomo Eco-Club” is a program
sponsored by a public interest incorporated foundation the Japan Environment
Association which promotes environmental activities for children from 3 to 18 yearsof age. With the support from local municipalities, private companies and variousorganizations, the association implements
environmental activities through their nationwide office network.
Since the business theme of Amano is“Time” and “Ecology”, it is important for
Amano that children have a broad understanding of how people relate to theenvironment, to foster the feeling that nature is precious, and to nurture the abilities
to think and act autonomously in orderto solve environmental problems. Amano
believes that such programs will broaden
regional environmental protection activities and intends to support it as part of
Amano’s CSR.

Clean Systems
North American Market: Wooden
Floor Sanding Business is the performance driver!
Strengthening Sales of Robotic
Cleaners
In light of the strong housing and building
market in Nor th America, the wooden
11“Kodomo Eco-Club”

Amano USA Holdings, Inc.
Amano Cincinnati, Inc.
The ACI time division had a successful launchof its latest side printer time clock line. This
allowed for the discontinuation of some older
models and the consolidation of new models
which increase the economies in our production environment.
The release was well received by all sales channels. The new product is currently in stores at
our largest retail customer and is selling well.
This new clock was designed with the customers’ needs in mind, with its simplistic programing functions it allows
the customer to change
the time, print configuration and other settingwith the touch of abutton. This new user
friendly programming
design is sure to provide a positive customer
experience and reduce calls to our support
center.
The next generation of PIX-3000x and TS3000i are now in the early stages of development. The PIX-3000 has been a staple in ourtime clock product portfolio for many years. It
is one of the bestselling and most robust side
printers on the market. The PIX-3000 was soldin our domestic market as well as the international market and was available in many power
configurations.
The TS-3000i was
originally developed asa replacement for the
PIX-3000xn and xnt
and was designed tomeet the needs of thefinancial trading market. However, we haveseen the need for synchronized time reporting
expand to other markets like health care, transportation, casino among others. The TS-3000i
continues to be a strong product in our timeclock line. The features and durability of thisproduct continue to dominate the market. The
development and manufacturing for this newseries will be done in our Ohio factory and will
incorporate the latest technology available.
The consolidation of our administrative teamto the Ohio factory has proven to be beneficial to both our customers and our internal
technical team. Our administrative staff has
been trained on time clock support and is able
to assist our customers quickly. We are able
to provide valuable customer feedback to ourdevelopment and manufacturing team whichallows for prompt root cause analysis and corrective actions.

Accu-Time Systems, Inc.
During 2015, Accu-Time Systems, Inc. (ATS)began preparations to celebrate its 25th year
in business with the release of four new Workforce Management (WFM) data collection
terminals. These terminals were developed in
response to reseller demands for faster terminals with greater screen real estate, a full-color
Sends employee
demographic data

Sends employee
TimeComTM
demographic data,
Hosted Solution software updates,

clock configurations
to terminal

Validates employee
demographic data
Receives raw datafrom terminal

ERP/HCM Solution in near real-timeEngine XML

Sends raw datafrom terminal

in/out, lunch,（break,transfer）

in/out, lunch,（break,transfer）

display and a greater variety of biometric andother reader options. The new and improved
terminals, members of the PeoplePoint familyof ATS products, have garnered immediate
acceptance by our value added resellers as
demonstrated by the 11,000 units that shipped
during the first year of production.
ATS’s TimeCombusiness, which integrates our timeclocks to a varietyof enterprise resource planning(ERP) and human capital management (HCM)
systems through the utilization of our cloud
based integration middleware, grew steadily
in 2015. Revenue from TimeCom businessincreased 280% over 2014 primarily due to a
42% increase in the number of TimeCom customers. These new customers resulted in an
86% increase in terminal sales with corresponding warranty products, professional services,and monthly hosting fees for our SaaS solution.
The growth in the TimeCom business is largely
attributed to our close relationships with ourpartners, our ability to further penetrate the
ERP/HCM market space, and making gains in
specific industries, including retail, manufacturing, higher education, and healthcare.
Growth in the TimeCom segment of ATS’sbusiness can be seen in the expansion of
our hosted solution and terminal sales outside of the United States. Worldwide, over
100,000,000 transactions per year are captured
by ATS’s PeoplePoint products. A big factor in
our TimeCom success is our ability to give ourcustomers greater visibility and transparency
into their employee activity taking place at theterminal through the use of our TimeCom
Monitor. The TimeCom Monitor is an easy
to use web portal that is customer facing andallows Accu-Time’s customers to gain visibility

12

into the health andstatus of their employee time clock
deployment, as wellas the integration
with their ERP system. With the TimeCom
Monitor, users can gain insight into average
up time for all devices across the entire clock
deployment, as well as information about theemployees such as their badge numbers or
employee demographic data that’s interfacingwith the ERP system. The TimeCom Monitor
allows our customers to get ahead of potential
problems before they occur. TimeCom Monitor gives customers with global, regionalized
or localized IT support the ability to monitor
their clock deployment and see problems that
may occur with user behavior, the integration,or the network infrastructure. Having accessto this information allows them to solve these
problems before they have a negative impact
on the payroll process.
ATS is committed to listening to the demandsof the market and providing quality and value
to our customers. The evolution of thePeoplePoint family of terminals, TimeCom andthe TimeCom Monitor have successfully demonstrated our commitment in 2015.

Amano McGann, Inc.
General Overview
Amano McGann, Inc. (AMI) reported record
numbers for revenue and pre-tax profit for
2015, surpassing all planned and prior year
financial performance by a significant margin.
The key drivers for 2015 financial performance
include the dealer network, with new representative ITR (GA) and the Northeast andSoutheast U.S. region branches. Dealers surpassed the prior year’s revenue by 39%, while
the Northeast and Southeast regions exceeded2015 revenue by 20% and 40% respectively. In
addition, the Metric On-Street direct productsales doubled from the prior year.
It’s noteworthy that, in 2015, OPUS production was forecast at 40% and magstripe at 60%.
The actual product mix indicates the strong
market acceptance of OPUS with almost 60%of the production dedicated to OPUS.

Core Products
The OPUSeries® line of parking devices were
designed using the latest system architecture
and communication platforms, leveraging theadvanced features of AMI’s industry leading
software solutions, iParcProfessional® and
OPUSuite®.
iParcProfessional is AMI’s on-premise powerhouse application that has evolved over 20

years to become
the most featurerich and successful
parking software in
the industry. OPUSuite is AMI’s next generation of cloud-based
solutions designed to provide advanced features, functionality and expansion to iParcProfessional’s current install base as well as future
projects.
These advanced and stylish solutions are perfect for both medium and high-volume locations where a superior customer experience
with flexible payment options is a must. AMI’s
unique, encrypted 2D barcode ticket technology is more secure than traditional magstripe
tickets with the added value of lower consumable costs.

Expanded Products
Overture™ has established itself
as an international
player in over 30
countries as Xparc.
It has now beenenhanced to meetthe unique requirements of the small andmedium-volume locations in North America.
Overture was released for sale in Novemberof 2015 at the Dealer Conference in Japan.
The Overture product line was featured at theParking Industry Exhibition in Las Vegas in February where it was well-received. It will also behighlighted at various parking industry shows in
2016, including the Expo Seguridad in Mexico
City, International Parking Institute (IPI) Exposition in Nashville, National Parking Association
show in Atlanta and the Canadian Parking Association in Ottawa, Canada.
Overture was installed in its first North American location in February with two additional
installations scheduled for April and June. We
look forward to a successful 2016 with theOverture product line.
The Amano Multi-Space-Meter (MSM) Powered by Metric continues to be deployed in
expanded geographic areas across the U.S.
with continued growth in Ontario, Canada.
New installations include the states of California, Texas, Minnesota and Alabama. The New
Jersey account base continues to grow organically. In addition, the On-Street maintenanceservice business via NowCare® grew by 35%.
Metric will be launching a new MSM pay station, SPRITE, which was debuted at the IPI
Expo in May 2016. SPRITE is a product thatwas developed specifically to capture the OnStreet market which will create a larger ad-

dressable market segment for the future.

Major Project Awards
AMI continues to see a steady rise in thesale of OPUSeries equipment. The advanced
barcode technology and extensive feature
set have secured the award of major projects
across the country. AMI was awarded the Lambert-St. Louis International Airport contract inJuly 2015 which includes 64 lanes of OPUSeries equipment in two parking garages and fivesurface lots. The City of Sacramento contract
marked another significant award in November
2015 and includes
34 lanes of OPUSeries terminals to
be installed in fiveparking facilities.
The system willoffer patrons visibility to available
parking, options to prepay for parking, and theability enter and exit facilities with relatively nodelay. This project also provides a platform todevelop new features and functions that will
expand AMI’s product offerings and competitive advantage.

Amano Pioneer Eclipse Corporation
Amano Pioneer Eclipse Corporation (APEC)
grew 26.5% in 2015, continuing a string of six
consecutive years of growth. APEC, which
manufactures and sells products under the
Pioneer Eclipse, American Sanders, and Amano
Environmental Americas brands, enjoyed revenue growth in every product category in 2015,
led by an impressive 109% growth in cleaningmachines.
APEC’s Pioneer Eclipse cleaning business had
an unprecedented year of success, finishing 2015 with growth of 41%. The cleaningmachine category led theway as Pioneer Eclipse wasawarded private label manufacturing contracts withthree major cleaning equipment OEMs. Additionally,
the Strategic Accounts sales
team landed the propane
burnisher business at a major US grocery store chain
and the propane burnisher business at one of
the world’s largest big-box retailers. This wasaided by a small April 2015 acquisition, allowing Pioneer Eclipse to improve its productposition at a major US retailer while also improving its product portfolio and gross margins
in the high volume floor machine category. In
the cleaning chemical category, Pioneer Eclipse

13

posted its third consecutive year of growth in
the private label segment of the market. Investments in new labeling equipment helped growthis category 86% in 2015. Private label now
represents 13% of APEC’s annual chemicalsales.
The American
Sanders woodfloor businesshas continued to
grow into an important part of APEC’s overall portfolio. Originally acquired in March, 2014, American Sanders contributed 31% growth in 2015. Whilethe continued strength of the US housing
and construction markets contributed to thestrong sales year, R&D investments in productimprovements and new product introductions
were well received in the marketplace. One
example is the HydraSand Multi-Head Sanding
disc which exceeded its 2015 sales forecast by120%.
APEC’s Amano Environmental Americas (AEA)
business grew 13% in
2015. The business was
led by 25% growth in theequipment category, its
fourth consecutive year of double digit equipment growth. The performance of this business
was further highlighted by a 27% improvementin gross margins, which was the result of improved manufacturing processes and pricing
strategies.
In 2015, APEC continued to improve its sales
and marketing presence. The company participated in a record number of trade shows in
2015, both in the US and internationally. These
trade shows included four major US shows aswell as international shows in Canada, Mexico
and Brazil. Additionally, new sales personnel
were hired in Northern Europe, Canada, andthe United States.

Amano Europe Holdings, N.V.
Amano Europe, N.V.
In 2015 Amano
Europe continued
to grow both revenue and profit in
the main businesssegments; parking solutions and time and attendance.
The X-Parc parking solution has been installedsuccessfully in 30 different countries worldwide.
With X-Parc Amano offers a robust, flexible

and network centric solution. The traditional
VALUE-Line has been extended with an ECOLine to serve niche markets and a SMART-line
focusing on cloud- and mobile services. Ease of
integration, low cost of ownership, fast time tomarket and quality assurance are the four cornerstones to drive success. With X-Parc range,
Amano is positioning itself in the global mobility market as a solution and service provider.
Astrow Cloud, the next generation of the proven T&A software
solution for small and medium
sized businesses, is getting widely
accepted in several European
countries with around 10,000
actual users. The key drivers to
success are mobility, flexibility and appeal.
iTR-100 is now sold all over Europe throughdifferent channels. iTR-100 stretches on the
typical time recorder functionality by offering
new and compelling cloud services, like online
support, payroll andreporting. Ultimately, iTr100 is also the entry point
for a further and seamless
upgrade towards Astrow
Cloud.

Amano Time & Parking Spain, S.A.
It is commonly known that Gibraltar is a British
overseas territory, although it is geographicallylocated on the southern end of the Iberian
Peninsula. It has an area of 6,7km2 and 32.000
people live there. The official language of Gibraltar isEnglish, but most locals arebilingual, speaking Spanish.
Its currency is Gibraltar
Pound.
This Gibraltar market isour sales territory, where
7 car parks use AMANO machines. One ofthem is a large and emblematic car park withapproximately 1.000 parking lots. Last year
2015, we won this project and our X-Parc machines were installed.
By penetrating into the Gibraltar market, we
keep a high reputation in Gibraltar and a good
relation with a governmental company who
manages car parks there. Thanks to such apresence, a potential new project is now undernegotiation. We wish it become the 8th. carpark in Gibraltar with AMANO machines.

French company specialized in access control
and related services, in order to enforce theaccess control division of Horoquartz. The
workforce management division was reorganized geographically in order to be able toserve the customers better and faster, more
specifically the big accounts, which constitute a
growing part of the business of Horoquartz not
only in the French market but also worldwide.
Horoquartz continued to invest in optimization
software, like planning solutions, as this is a key
driver of the workforce management business. Specific attention is given to the growing
demand of cloud solutions. All Horoquartz
solutions are part of an integrated solution, which allows Horoquartz to act likeSingle Point of Contact in awide range of HR management needs.
EMPLOYEESELF-SERVICEJOBCOSTINGACCESSCONTROLTimeManagement

WORKFORCE
MANAGEMENTCOMMUNICATIONINTERFACEACTIVITY
MANAGEMENTWORKFORCESCHEDULINGADVANCED
WORKFORCESCHEDULINGEMPLOYEESELF-SERVICEMEDIUM AND
LONG-TERMSCHEDULINGJOBCOSTINGCOMMUNICATIONINTERFACEWORKFORCE
MANAGEMENTWORKFORCESCHEDULING

eTemptation
Suite

ADVANCED
WORKFORCE SCHEDULINGACTIVITY
MANAGEMENTMEDIUM AND LONGTERM SCHEDULING

Amano International
Trading (Shanghai) Co., Ltd.
AITS has achieved the first installationof AMANO QR code Parking system
in China.
The distinctive feature of the system is thatit operates by recognizing license plates andprinting QR code tickets.
Once a license plate is recognized, drivers canfreely enter the parking lot without extracting
the tickets.
On the other hand, ticket extracting entry is
also available when license plates are not recognized.
Customers can make payment on the automatic pay station before they exit.
The charges can be referred by using QR code
ticket or typing their car numbers on the machine.
Furthermore, customers can also make a pay-

Horoquartz, S.A.
During 2015 Horoquartz observed a steady
growth of its activities in the major businesslines as the market leader in France. In October 2015 Horoquartz acquired ARGOSSE, a

14ment via smartphones.
No matter where customer is, they can makeelectronic payment by scanning their QR codeon the ticket.
If they terminate the payment, the drivers canexit without halting.
We will vigorously promote this QR code
parking system hereafter.

Amano Malaysia Sdn. Bhd.
AMANO MALAYSIA has set up Parking management service department todiversify and expand the business.
We have employed an experienced staff
member in management service field, and we
manage four parking systems so far. These facts
show that we are entirely involved in this new
business.
In June 2016, we received the order ofparking management service from TESCOPUCHONG, the first outlet of TESCO in
Malaysia, who is the third world’s largest retailcompany.
This parking lot has 745 car spaces and has
three lanes for each exit and entry way. The
parking lot was for free before, however, they
have started being troubled with illegal parking from two months ago, derived from the
new-establishment of LRT station next tothe store. Therefore, they decided to chargesome amount of money in parking in order
to exclude those illegal parking by introducing
the parking system. They sought the parking
management company which provides thesystem installation and parking management.
As a result of competition, AMANO Malaysia
was able to receive the order. The management service will start on 7th of July and weare preparing in a rush for opening under
Ramadan month. The parking system will open
for 24 hours and we will place the staff(s) ateach management office from 8 A.M. to 11 P.M.
TESCO has already opened over 20 storesin Malaysia, and we expect to make the nextmanagement contract in rest stores.
The parking management business in Malaysia
is very competitive as there exist about 30
rival companies including both small and large.
Nevertheless, we set our goal of No.1 Parking management service company in Malaysia
equivalent to Parking equipments sales in near
future. We will be implementing the strong
marketing continuously.
Our sales in Parking equipment also increases
well as time goes. This year, AMANO X-Parcsystem will be installed in Empire city, the newcommercial large facility in Kuala Lumpur. The
parking lot has 10,000 car spaces and hold 20
entry, 18 exit lanes and 37 units of entry pay
station. This parking system will be the largest
scale in AMANO Malaysia history. The facility
is under construction and it is presumed that it
will open within this year.

Promoted by the Shinsegae Group, the Starfield
FIRST HAMAM project is the largest of its kind in
Korea. The complex was named with the hope that
it will be adored by all, like a “star field”, and that it
will attract many people. In addition, there are several new constructions of community-based shopping
malls such as Dangdaegu Complex T.C and Samsung
Shinsegae mall (marketing already underway with anestimated value of approximately 250 million yen).
AKC is placing all efforts not to miss such opportunities and win orders by demonstrating its uniqueexpertise in this field.

allowing EV owners to charge their vehicles
while parking.

Installation site 1.

Installation site 2.

The EV charging unit will be housed inside thecasing of the flapless LPR unit itself so that itremains compact and does not interfere withpedestrians.

“LPR begins to evolve!
Cargate, Electronic display and LPR has
become an all-in-one unit.”

Amano Korea Corporation
AKC’s first time ever exclusive orders
for large-scale projects!
Starfield FIRST HANAM & Dongdaegu
Complex transfer center
The competition in the parking control systems
market is becoming increasingly fierce and amidsuch a market, the only way to stay ahead is topossess parking systems utilizing cameras which
are still rare among the rivals. AKC possessing
such systems, succeeded in winning two large
projects this year.

Starfield FIRST HANAM

Dongdaegu Complex
transfer center

Total area
Ground area
Scheduled opening
Parking capacity

5

Tenants

6

Building

7

AKC sales value

Starfield FIRST
HANAM
459,498m2
117,990m2
Sept 2016
5,000 cars
Department store,
multiplex, hotel, shopping malll
4 stories above and 4stories below
5.6 billion KRW( 510
million JPY)

Dongdaegu Complex
T.C
338,194m2
162,881m2
Dec 2016
2,678 cars
Department store,
multiplex, shopping
mall, metro station,
express train
station(KTX)
9 stories above and 7
stories below
2.6 billion KRW (240million JPY)

The components of notable parking system
1
2
3
4
5
6
7
8

License plate recognition unit (recognizes
the front and rear)
License plate recognition unit (recognizes
the front)
Automatic pay
station(KIOSK type)
Exit automatic pay
stationFixed camera guidance system(for 4 car spaces)
Indicator light
Car gate
CCTV camera

Per/unit

Starfield FIRST
HANAM

Dongdaegu Complex
T.C

18

6

22

5

41

14

16

5

1723

1020

415
53
546

288
11
269

As part of AKC’s efforts to reduce costs andstrengthen competitiveness, AKC has continued its research and development of LPR(License Plate Recognition) products. Recently
AKC has developed and launched an all-in-one
LPR product called the “Combi LPR”, which isparticularly suited for places with limited spacefor installation such as on slopes and plinths.
This unique feature is well received by themarket and proving effective in winning competitive tenders.

Image

Outline:1
2
3
4

Combi LPR (Combination LPR)

Installation example
Front

Main specifications
Power supplyPower
consumption

LPR Part
AC220V, 60Hz

Electronic display
AC220V, 60Hz

Gate part
AC220V, 60Hz

200W (Max.)75W (Max.)

110W (Max.)

Camera 1.3
Megapixel
CMOS sensor
GigE

Communication:
EternetDriving mechanism:
BLDC motor

LED 64×64
2 lines, 6 letters
per line

Opening andclosing time
1.5~3 seconds“On-street parking system meets the EV
charger”
Flapless LPR & Charger system
AKC is a joint participation company in an IOT
venture project promoted by the Information
Planning Team of Seoul city and has introduced the flapless LPR system. This system
was installed as an on-street parking system at
the resident-priority street parking in Bukchon
Hanok Village with the collaboration of Modu
Company. In addition, AKC plans to install flapless LPR systems equipped with EV chargers

15

AKC believes that its ability to accurately grasp
market changes and customer needs forms thefoundation of its product appeal and marketing strengths. As such, AKC will continue andrefine its customer-oriented management by
expanding its branch network to fuel development of products that will enable AKC toachieve sustained growth.

AMANO Corporation and Subsidiaries

Financial Highlights
For the years ended March 31, 2016
Yen in millions and U.S.dollars in thousands, except per share amounts- See Note 4 to the Consolidated Financial Statements.
Thousands of U.S.dollars(Note 4)

Millions of Yen

2016

2015

2016

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

¥119,506¥109,837$1,057,578

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

8,405

6,794

74,386

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

¥109.75¥88.71$0.971

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

48.00

38.00

0.425

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

¥136,965¥131,560$1,212,087

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

51,74150,653457,890

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

95,60692,148846,077

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

¥25,512¥23,558$225,778

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

4,165

4,100

36,859Parking systems.........................................................

55,78451,817493,665

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

21,83020,639193,189

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

12,2139,720

108,087

For the years ended March 31:

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

At March 31:

Sales by product:

Note: U.S. dollar amounts have been translated at the rate of ¥113 = US $1, the rate prevailing on March 31, 2016.
- See Note 4 to the Consolidated Financial Statements.

Net Sales

Net Income

Net Income Per Share(Millions of Yen)

(Millions of Yen)

(Yen)

1300009000

120.001200008000

110000100.007000

100000
90000

6000

80.00

80000
70000

5000

60000

4000

60.00

50000
3000

40000
30000

2000
20.00

20000

1000

10000
0

40.00

'12

'13

'14

'15

'16

0

'12

'13

'14

16

'15

'16

0.00

'12

'13

'14

'15

'16

AMANO Corporation and Subsidiaries

Consolidated Balance Sheet
As at March 31, 2016
Thousands of U.S.dollars(Note 4)

Millions of Yen

ASSETS

2016

2015

2016

Cash and bank deposits (Notes 7, 12 and 16)..............

¥36,888¥35,126$326,446

Marketable securities (Note 16)..................................

1,527

1,871

13,521

34,57632,861305,987

Current assets:

Notes and accounts receivable:
Trade (Note 16) ....................................................
Less allowance for doubtful accounts .....................

(314)

(219)

(2,780)34,26232,641

303,207

3,197

3,273

28,292Inventories:
Merchandise and finished goods ............................
Work in process ...................................................

669

680

5,925

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

4,992

4,661

44,178Deferred tax assets (Note 18) .....................................

1,783

1,507

15,784

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

2,554

1,870

22,608

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

85,875

81,633759,962

Buildings and structures (Note 7) ...............................

29,33829,510259,636

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

19,182

18,706

169,759

Leased assets (Note 15) .............................................

6,899

7,549

61,05455,42055,766490,449

Less accumulated depreciation ..............................

(39,637)(39,334)(350,777)

15,782

16,432

139,673

7,170

7,274

63,456

Property, plant and equipment, at cost:

Land ........................................................................
Construction in progress ............................................

636

314

5,629

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

23,58924,021

208,758

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

4,088

4,866

36,183

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

2,521

2,321

22,312

Software in progress ..................................................

3,252

1,553

28,782Other intangible fixed assets ......................................

3,414

3,538

30,217

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

13,276

12,279117,494

Intangible fixed assets :Investments and other assets:
Investments in unconsolidated subsidiaries and affiliates(Notes 6 and 16) .......................................................

1,771

1,889

15,680Investments in securities (Note 16) ............................

6,226

5,790

55,099Leasehold and guarantee deposits ..............................

1,122

1,025

9,933

Deferred tax assets (Note 18) .....................................

1,646

1,423

14,572Other assets (Note 7) ...............................................

3,867

3,917

34,224

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

(410)

(421)

(3,635)

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

14,223

13,625

125,873

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

¥136,965¥131,560$1,212,087

17

Thousands of U.S.dollars(Note 4)

Millions of Yen

LIABILITIES AND NET ASSETS

2016

2015

2016

Current liabilities:
Trade notes and accounts payable (Note 16) ..............
Electronically recorded monetary claims (Note 16) .....
Short-term bank loans (Note 7) ..................................
Lease obligations (Notes 15 and 16) ...........................
Accrued bonuses for employees .................................
Accrued bonuses for directors ....................................
Accrued income taxes ...............................................
Other current liabilities ..............................................
Total current liabilities ..........................................

¥7,642
6,438
1,250
1,448
2,263
85
3,332
11,67334,134¥7,125
6,538
328
1,410
1,941
45
2,295
11,29530,980$67,630
56,974
11,07012,82320,028755
29,487103,305
302,072

Long-term liabilities:
Long-term loans payable (Notes 7 and 16) .................
Liability for retirement benefits (Note 17) .........................
Long-term accounts payable ......................................
Lease obligations (Notes 15 and 16) ...........................
Deferred tax liabilities (Note 18) ................................
Asset retirement obligations ......................................
Other long-term liabilities ..........................................
Total long-term liabilities ..................................
Total liabilities ..................................................

506
2,986
160
3,256
9
30
275
7,225
41,359

1,988
2,515
186
3,381
13
29
316
8,431
39,411

4,485
26,425
1,419
28,81984
270
2,436
63,939366,011

18,23919,29359,757

18,23919,29354,645

161,412
170,735
528,827(56)
97,233(54)
92,123(501)
860,473

1,456(2,321)(1,178)(2,043)

1,542(1,070)
(822)
(350)

12,893(20,543)(10,431)(18,081)Non-controlling interests in consolidated subsidiaries .....

416

375

3,685

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

95,606¥136,965

92,148¥131,560

846,077$1,212,087

Net assets (Notes 10 and 11):
Shareholders' equity:
Common stock
Authorized - 185,476,000 shares
Issued:March 31, 2016 and 2015 - 76,657,829 sharesin 2016 and 2015 ..............................................
Capital surplus .....................................................
Retained earnings .................................................
Treasury stock at cost, 68,109 shares in 2016
and 66,585 shares in 2015 ...................................

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

The accompanying notes are an integral part of these statements.

18

AMANO Corporation and Subsidiaries

Consolidated Statement of Income, andConsolidated Statement of Comprehensive Income
For the years ended March 31, 2016

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

Millions of Yen

Net sales
Cost of sales (Note 9) ............................................................
Gross profit
Selling, general and administrative expenses (Notes 8 and 9)
Operating income
Other income ( expenses ):Interest and dividend income .....................................
Interest expense ........................................................
Equity in earnings of affiliates ....................................
Foreign exchange gain (loss) .....................................
Gain on sale of fixed assets ........................................
Loss on disposal of fixed assets ..................................
Loss on sale of fixed assets ........................................
Extra retirement payments..........................................
Gain (loss) on sale of shares of consolidated
subsidiaries and affiliates (Note 19)............................
Impairment loss on fixed assets (Note 13)...................
Other, net .................................................................
Income before income taxes and non-controlling interests ........
Income taxes (Note 18):
Current .....................................................................
Deferred ...................................................................
Income before non-controlling interests ................
Non-controlling interests in net income of consolidated subsidiaries .....
Net income............................................................

2016

2015

2016

¥119,506
66,57552,93039,98812,942¥109,837
62,221
47,61638,2599,357$1,057,578
589,162
468,416
353,877
114,539

249
(46)
148
(80)
5
(71)
(28)
–

291
(61)
59
151
7
(61)
(0)
(38)

2,211
(409)
1,315
(714)
49
(637)
(249)
–

(8)
(236)
439
13,314

385
(175)
391
10,307(77)(2,093)
3,890
117,825

5,208
(411)
8,517
(111)
¥8,405

3,921
(555)
6,941
(146)
¥6,79446,094(3,642)75,374(988)$74,386

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

Millions of Yen

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

2016

2015

2016

¥8,517¥6,941$75,374(82)(1,267)
(356)

958
2,442
(10)

(731)
(11,215)(3,152)Other comprehensive income (loss) (Note 14):
Net unrealized gains (losses) on other securities .........
Translation adjustments ............................................
Retirement benefits liability adjustments ....................
Share of other comprehensive income (loss) of companies
accounted for by the equity method .........................
Total other comprehensive income (loss) .................
Comprehensive income ........................................................

(17)

22

(154)

(1,723)¥6,793

3,414¥10,355(15,253)$60,121

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

¥6,713¥80¥10,162¥192$59,409$713

The accompanying notes are an integral part of these statements.

19

AMANO Corporation and Subsidiaries

Consolidated Statement of Changes in Net Assets
For the years ended March 31, 2016
Millions of Yen
Shareholders’ equity
Common stock

Capital surplus

Retained earnings

Balance at April 1, 2015
Changes during the year
Dividends from surplus
Net income
Purchase of treasury stock
Retirement of treasury stock
Change in the scope of consolidation
Net changes in items other than shareholders' equity
Total changes during the year

¥18,239¥19,293¥54,645––

Balance at March 31, 2016

¥18,239¥19,293

Balance at April 1, 2015
Changes during the year
Dividends from surplus
Net income
Purchase of treasury stock
Retirement of treasury stock
Change in the scope of consolidation
Net changes in items other than shareholders' equity
Total changes during the year
Balance at March 31, 2016

Total shareholders’equity(¥54)¥92,123

Treasury stock(3,293)8,405(2)(3,293)
8,405
(2)
–
–

5,112

(2)

5,109

¥59,757(¥56)¥97,233

Accumulated other comprehensive income
Non-controllinginterests in
Net unrealized Foreign currency
Retirement
Total accumulated
gains (losses) on
translation
benefits liability other comprehensive consolidated
subsidiaries
other securities
adjustments
adjustments
income (loss)¥1,542(¥1,070)(¥822)(¥350)
¥375

(85)
(85)

(1,250)(1,250)

(356)
(356)

(1,692)(1,692)40
40¥1,456(¥2,321)(¥1,178)(¥2,043)¥416¥95,606

Common stockThousands of U.S. dollars (Note 4)
Shareholders’ equity
shareholdCapital surplus Retained earnings Treasury stock Totalers’ equity$170,735$483,586($480)$815,254$161,412––

45,241(22)

45,219Balance at March 31, 2016

$161,412$170,735$528,827($501)$860,473

Balance at March 31, 2016

¥92,148(3,293)
8,405
(2)
–
–
(1,651)
3,457

Balance at April 1, 2015
Changes during the year
Dividends from surplus
Net income
Purchase of treasury stock
Retirement of treasury stock
Change in the scope of consolidation
Net changes in items other than shareholders' equity
Total changes during the year

Balance at April 1, 2015
Changes during the year
Dividends from surplus
Net income
Purchase of treasury stock
Retirement of treasury stock
Change in the scope of consolidation
Net changes in items other than shareholders' equity
Total changes during the year

Total net assets(29,145)(29,145)

74,386(22)

74,386(22)––

Accumulated other comprehensive income
Non-controllinginterests in
Net unrealized Foreign currency
Retirement
Total accumulated
gains (losses) on
translation
benefits liability other comprehensive consolidated
subsidiaries
other securities
adjustments
adjustments
income (loss)$13,652($9,477)($7,278)($3,104)$3,325

Total net assets$815,475

(759)
(759)

(11,065)(11,065)(3,152)(3,152)(14,977)(14,977)360
360(29,145)
74,386(22)––(14,618)
30,601$12,893($20,543)($10,431)($18,081)$3,685$846,077

20

Millions of Yen
Shareholders’ equity
Common stock

Capital surplus

Retained earnings

Treasury stock

Balance at April 1, 2014
Cumulative effect of change in accounting principle
Restated balance at April 1, 2014
Changes during the year
Dividends from surplus
Net income
Purchase of treasury stock
Retirement of treasury stock
Change in the scope of consolidation
Net changes in items other than shareholders' equity
Total changes during the year

¥18,239¥19,293(¥52)

18,23919,293¥49,298
1,012
50,310––

Balance at March 31, 2015

¥18,239¥19,293

Balance at April 1, 2014
Cumulative effect of change in accounting principle
Restated balance at April 1, 2014
Changes during the year
Dividends from surplus
Net income
Purchase of treasury stock
Retirement of treasury stock
Change in the scope of consolidation
Net changes in items other than shareholders' equity
Total changes during the year
Balance at March 31, 2015(52)

Total shareholders’equity¥86,778
1,012
87,791(2,450)6,794(2)(2,450)
6,794
(2)
–
(9)

4,334

(2)

4,332

¥54,645(¥54)¥92,123(9)

Accumulated other comprehensive income
Non-controllinginterests in
Net unrealized Foreign currency
Retirement
Total accumulated
consolidated
gains (losses) on
translation
benefits liability other comprehensubsidiaries
sive income (loss)
other securities
adjustments
adjustments¥574(¥3,481)(¥812)(¥3,718)¥422
574(3,481)(812)(3,718)Total
net assets

422¥83,482
1,012
84,495

967
967

2,410
2,410

(10)
(10)

3,367
3,367

(46)
(46)

(2,450)
6,794
(2)
–
(9)
3,320
7,653

¥1,542(¥1,070)(¥822)(¥350)¥375¥92,148

The accompanying notes are an integral part of these statements.

21

AMANO Corporation and Subsidiaries

Consolidated Statement of Cash Flows
For the years ended March 31, 2016
Thousands of U.S.dollars(Note 4)

Millions of Yen

Cash Flows from Operating Activities:
Income before income taxes and non-controlling interests ...
Depreciation and amortization ...................................
Amortization of goodwill ...........................................
Impairment loss on fixed assets .................................
Increase (decrease) in liability for retirement benefits ......
Increase (decrease) in allowance for doubtful accounts .......
Interest and dividend income .....................................
Equity in earnings of affiliates ...................................
Interest expenses ......................................................
Foreign currency translation (gain) loss ......................
Extra retirement payments..........................................
(Gain) loss on sale of shares of consolidated subsidiaries.....
(Gain) loss on sale of fixed assets ..............................
Loss on disposal of fixed assets ..................................
(Increase) decrease in trade notes and accounts receivable .......
(Increase) decrease in inventories ..............................
Increase (decrease) in trade notes and accounts payable......
Others ........................................................................
Subtotal ......................................................................
Interest and dividends received ..................................
Interest paid .............................................................
Payment for extra retirement payments.......................
Income taxes paid .....................................................
Income taxes refunded...............................................
Net cash provided by operating activities ...............
Cash Flows from Investing Activities:
Payment for purchase of marketable securities ...........
Proceeds from redemption of marketable securities ............
Payment for purchase of property, plant and equipment ......
Proceeds from sale of property, plant and equipment ..........
Payment for acquisition of intangible assets ...............
Payment for acquisition of investments in securities ...........
Proceeds from sale of investments in securities ...........
Increase in time deposits ...........................................
Decrease in time deposits ..........................................
Payment for acquisition of investments in subsidiaries
resulting in change in scope of consolidation .............
Proceeds from sales of investments in subsidiaries
resulting in change in scope of consolidation .............
Payment for business acquisition ...............................
Loans to third parties ................................................
Collection of loans ....................................................
Others ......................................................................
Net cash used in investing activities ......................
Cash Flows from Financing Activities:
Repayment of short-term bank loans ..........................
Repayment of long-term debt .....................................
Payment for acquisition of treasury stock ...................
Repayments of finance lease obligations .....................
Proceeds from sale and leaseback ..............................
Dividends paid ..........................................................
Dividends paid to non-controlling interests..................
Net cash used in financing activities ......................
Effect of exchange rate changes on cash and cash equivalents.......
Net increase (decrease) in cash and cash equivalents...............
Cash and cash equivalents at beginning of year........................
Increase due to inclusion in consolidation................................
Cash and cash equivalents at end of year (Note 12) .................
The accompanying notes are an integral part of these statements.

22

2016

2015

2016

¥13,314
4,415
789
236
19
105
(249)
(148)
46
3
–
–
22
71
(2,049)
(297)
544
513
17,337308(45)–(4,214)34
13,420¥10,307
4,137
765
175
(15)
(54)
(291)
(59)
61
(101)
38
(385)
(7)
61
(3,494)(1,007)973
787
11,889
280
(61)
(38)
(4,585)32
7,518$117,825
39,075
6,986
2,093
170
938
(2,211)(1,315)
409
30
–
–
199
637
(18,140)(2,629)4,817
4,546
153,430
2,734
(406)
–
(37,295)
301
118,763(2,000)2,400(2,906)73(3,270)(603)
216(10,133)
10,364(2,000)2,300(2,238)20(1,738)(56)–(7,541)
6,299(17,699)
21,239(25,721)654(28,945)(5,339)1,916(89,675)
91,725(410)–(3,636)

–
(235)
–
5
(109)
(6,608)394(2,044)(10)
492(6,519)–(2,085)–51(968)(58,482)

(341)
(215)
(2)
(1,643)
1,227(3,293)(39)(4,308)(304)
2,199
30,526–¥32,725

(445)
–
(2)
(1,668)1,622(2,450)(25)(2,969)719(1,250)31,674
102¥30,526(3,021)(1,905)(22)(14,547)
10,866(29,145)(353)(38,126)(2,692)
19,463
270,146–$289,609

AMANO Corporation and Subsidiaries

Notes to the Consolidated Financial Statements
1. Basis of Consolidated 		
Financial Statements
The accompanying consolidated financial statements of AMANO Corporation[hereafter, “the Company”] and its
subsidiaries have been prepared in accordance with the provisions set forthin the Japanese Financial Instruments
and Exchange Act and its related accounting regulations in Japan. The accounts of the Company and domestic
subsidiaries included in the consolidation are based on the accounting records
maintained in accordance with accounting principles generally accepted in Japan, which are different in certain respects as to the application and thedisclosure requirements of International Financial Reporting Standards.
The information in the consolidated financial statements is derived from theoriginal text, scope, and the nature ofthat information, and is therefore limited to that contained in the original text.
As permitted by the Financial Instruments and Exchange Act, amounts ofless than one million yen have beenrounded off. As a result, the totals
shown in the accompanying consolidated financial statements (both in yen
and U.S. dollars) do not necessarily
agree with the sums of the individual
amounts. Certain amounts in the prioryear’s financial statements have been
reclassified to conform to the current
year’s presentation.

2. Principles of Consolidation(1) Scope of Consolidation
The Company had 26 consolidated
subsidiaries at March 31, 2016. The
accompanying consolidated financial
statements include the accounts of theCompany and those of its subsidiaries
that are controlled by the Company.
Under the control concept, major subsidiaries in which the Company is able
to exercise control over operations areto be fully consolidated. The accountsof the overseas consolidated subsidiar-ies are consolidated using their financial
statements as of their respective fiscal
year end, which falls on December 31,
2015 and necessary adjustments are
made to their financial statements toreflect any significant transactions fromJanuary 1 to March 31, 2016. All significant intercompany balances andtransactions have been eliminated inconsolidation.

(2) Accounting for Investments
in Unconsolidated
Subsidiaries and Affiliates
None of the 5 unconsolidated subsidiaries are accounted for by the equity
method, because the effect of their net
income or losses and retained earnings
on the accompanying consolidated financial statements is immaterial. The
affiliates accounted for by the equity
method are listed below:- Creo Co., Ltd.
In addition, Parkinsys Technology Co.,
Ltd. was excluded from the scope of
the appli- cation of the equity method
due to the sale of Amano’s shareholding in the Company during the year
ended March 31, 2016.

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

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

(3) Property, Plant and Equipment
Property, plant and equipment arestated at cost, less accumulated depreciation. Depreciation is computed

23

on the declining balance method,
based on the estimated useful lives,
except for buildings acquired on orafter April 1, 1998 computed on thestraightline method. The ranges of
the useful lives of assets are:
Buildings and structures 5-50 years
Machinery and vehicles 7-17 years
Normal repairs and maintenance,
including minor renewals and improvements, are charged to income
as incurred.

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

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

(6) Accounting for Financial
Instruments(a) Derivatives
All derivatives are stated at their fairvalues, with changes in fair value included in net profit or loss for the period
in which they arise.
(b) Securities
Securities held by the Company and its
subsidiaries are classified into four categories;
Trading securities, which are held forthe purpose of generating profits on
short-term differences in prices, arestated at their fair values, with changes
in fair values included in net profit orloss for the period in which they arise.
Additionally, securities held in trusts for
trading purposes are accounted for in
the same manner as trading securities.

Held-to-maturity debt securities, that theCompany and its subsidiaries have intent to hold to maturity, are stated attheir costs after accounting for any
premium or discount on acquisition,
which are amortized over the period tomaturity. Investments of the Company
in equity securities issued by unconsolidated subsidiaries and affiliates areaccounted for by the equity method.
Exceptionally, investments in certain
unconsolidated subsidiaries and affiliates are stated at cost because the effectof application of the equity method
would be immaterial. Other securities
for which market quotations are available are stated at fair value. Net unrealized gains or losses on these securities
are reported as a separate item in the
net assets section at a net-of-tax amount.
Other securities for which market quotations are unavailable are stated at cost,
except as stated in the paragraph below.
In cases where the fair value of held-tomaturity debt securities, equity securities issued by unconsolidated subsidiaries and affiliates, or other securities had
declined significantly and such impairment of the value is not deemed temporary, those securities are written down
to the fair value and the resulting losses
are included in net profit or loss for theperiod.

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

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

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

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

(11) Retirement Benefits
The Company and some of its subsidiaries recognize accrued pension andseverance costs to employees based on
the actuarial valuation of projected24

benefit obligation and plan assets attheir value. The retirement benefit obligation for employees is attributed toeach period by the benefit formula
method. Prior service costs are amortized based on the straight-line method
over a period of ten years. Actuarial
gains and losses are amortized basedon the straight-line method over a period of ten years starting from the beginning of the subsequent year.

(12) Accrued Employees’
Bonuses
Accrued employees’ bonuses at the balance sheet date are based on an estimateof the amounts to be paid as bonuses
for services rendered by employees bythat date.

(13) Accrued Directors’ Bonuses
Accrued directors’ bonuses at the balance sheet date are based on an estimateof the amounts to be paid as bonuses
for servises rendered by directors by thatdate.

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

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

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

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

(18) Accounting Changes
Effective the fiscal year ended March 31,
2016, the Company began to apply the
Revised Accounting Standard for Business Combinations (Accounting Standards Board of Japan (ASBJ) Statement
No. 21 of September 13, 2013, hereinafter referred to as the Business Combinations Accounting Standard), the Revised
Accounting Standard for Consolidated
Financial Statements (ASBJ Statement
No. 22 of September 13, 2013, hereinafter referred to as the Consolidation Accounting Standard), and the Revised
Accounting Standard for Business Divestitures (ASBJ Statement No. 7 of September 13, 2013, hereinafter referred toas the Business Divestitures AccountingStandard). The Company changed to an
accounting method in which it records
as capital surplus any differences arisingfrom changes to its equity in subsidiaries
that remain under the Company’s control, and it records the corresponding
acquisition-related costs as expenses forthe fiscal year in which the costs wereincurred. For business combinations
implemented from April, 2015, the company has changed to an accounting
method in which revised acquisition costallocation amounts are reflected in the

consolidated financial statements for the
fiscal year in which the business combination occurs, based on the finalizationof provisional accounting treatment. In
addition, the Company changed its presentation method for net income, replacing the term “minority interests” with theterm “non-controlling interests.” To reflect this change in presentation, theCompany reclassified its consolidated
financial statements for the fiscal year
ended March 31, 2015.
Cash flows for the cost of the acquisitionof shares of a subsidiary involving achange in the scope of consolidation
were categorized in the consolidated
statement of cash flows for the fiscal year
ended March 31, 2016 within “CashFlows from Operating Activities.”
The Company applied the accounting
standards for business combinations
effective from the April, 2015 pursuant
to the transitional treatment stipulated in
Article 58-2 (4) of the Business Combinations Accounting Standard, Article 44-5
(4) of the Consolidation AccountingStandard, and Article 57-4 (4) of theBusiness Divestitures Accounting Standard.
The above-mentioned changes to accounting policies had only a negligible
effect on the consolidated financial statements of the Company for the fiscal year
ended March 31, 2016.

4. United States Dollar Amounts
The Company maintains its accounting
records in Japanese yen. The U.S. dollar
amounts included in the consolidated
financial statements and notes thereto
represent the arithmetical results oftranslating Japanese yen to U.S. dollars
at a rate of ¥ 113 = US$1, the approximate effective rate of exchange prevailing on March 31, 2016. The inclusionof U.S. dollar amounts is solely forconvenience of readers outside Japanand is not intended to imply that yen
amounts could be converted, realized,25

or settled in U.S. dollars at that, or any
other rate.

5. Standards Issued but Not Yet Effective
On March 28, 2016, the ASBJ issued“Revised Implementation Guidance on
Recoverability of Deferred Tax Assets “(ASBJ Guidance No. 26).

(1) Overview
Regarding the treatment of the recoverability of deferred tax assets, a review
was conducted following the frameworkof the Japanese Institute of Certified
Public Accountants Audit Committee
Report No. 66 “Audit Treatment on
Determining the Recoverability of Deferred Tax Assets, “whereby companies
are categorized into five categories anddeferred tax assets are calculated basedon each of these categories.
* Treatment of companies that do notsatisfiy any of the category requirements for (Category 1) through (Category 5)* Category requirements for (Category2) and (Category 3)* Treatment related to future deductible
temporary differences which cannot bescheduled in companies that qualify as(Category 2)* Treatment related to the reasonableestimable period of future pre-adjusted taxable income in companies that
qualify as (Category 3)* Treatment in cases that companies thatsatisfy the category requirements for(Category 4) but qualify as (Category2) or (Category 3)(2) Scheduled date of adoption
The Company expects to adopt the revised implementation guidance from the
beginning of the fiscal year ending March
31, 2017.

(3) Impact of adopting revised
implementation and guidance
The Company is currently evaluating theeffect of adopting this revised implementation guidance on its consolidated financial statements.

6. Investments in Unconsolidated Subsidiaries and Affiliates
Among investments in securities, the amount in aggregate corresponding to unconsolidated subsidiaries and affiliates at
March 31, 2016 and 2015 is as follows:
Millions of Yen

Investments in equity securities
Others2016¥1,633138

Thousands of U.S.dollars ( Note 4 )2015¥1,750138

2016$14,451
1,221

7. Assets Pledged as Collateral and Obligations Secured by Collateral
As at March 31, 2016 and 2015, the following assets were pledged as collateral:
Millions of Yen

Cash and bank deposits
Buildings and structures
Long-term bank deposits

2016
¥61
32
2

Thousands of U.S.dollars ( Note 4 )

2015
¥65
35
2

2016
$540
283
18

As at March 31, 2016 and 2015, such collateral secured the following obligations:
Millions of Yen

Short-term bank loans
Long-term loans payable

2016
¥5
–
¥5

Thousands of U.S.dollars ( Note 4 )

2015
¥16
5
¥21

2016
$44
–
$44

8. Selling, General and Administrative Expenses
Selling, general and administrative expenses during the years ended March 31, 2016 and 2015 principally include:
Millions of Yen

Employees' bonuses
Directors' bonuses
Retirement benefits
Salaries and allowances
Allowance for doubtful accounts

2016¥1,61565
1,283
17,79971

2015¥1,37145
1,232
16,795(30)

Thousands of U.S.dollars ( Note 4 )2016$14,292575
11,354
157,513628

9. Research and Development Costs
Research and development costs included in selling, general and administrative expenses and manufacturing cost for the years
ended March 31, 2016 and 2015 are as follows:
Millions of Yen

Research and development costs

2016¥1,3742015¥1,465

26

Thousands of U.S.dollars ( Note 4 )2016$12,15910. Changes in Shareholders’ Equity
Changes in “Shares issued and outstanding” and “Shares of treasury stock” during the period from April 1, 2015 to March 31,
2016 are as follows:(1) Shares issued and outstanding
Share type
Common stock (shares)

As of April 1, 2015
76,657,829

Increase

Decrease–(2) Shares of treasury stock
Share type
As of April 1, 2015
Increase
Common stock (shares)
66,585
1,524(Reason of change)
The increase in the number of shares is due to the purchases of shares less than one unit.

Decrease–

As of March 31, 2016
76,657,829–

As of March 31, 2016
68,109Changes in “Shares issued and outstanding” and “Shares of treasury stock” during the period from April 1, 2014 to March 31, 2015 are as follows:(1) Shares issued and outstanding
Share type
As of April 1, 2014
Increase
Decrease
As of March 31, 2015
Common stock (shares)
76,657,829––
76,657,829(Reason of change)
The decrease in the number of shares is due to the retirement of treasury stock.
(2) Shares of treasury stock
Share type
As of April 1, 2014
Increase
Common stock (shares)
64,808
1,777(Reason of change)
The increase in the number of shares is due to the purchases of shares less than one unit.

Decrease

As of March 31, 2015
66,585–

11. Dividends
Information on dividends for the fiscal year ended March 31, 2016 is as follows:(1) Dividends paid
Resolution

Share type

Ordinary general meeting of shareholders, Common stock
June 26, 2015
Board of directors meeting,Common stock
October 29, 2015

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

Effective date

¥1,761$15,589¥23$0.204

March 31, 2015 June 29, 2015

¥1,531$13,556¥20$0.177

September 30,
2015"

December 2,
2015(2) Dividends for which the date of record falls in the fiscal year, but the effective date is after the end of the fiscal year.
Date of
Dividend Total dividend Total dividend Dividend per share Dividend per share
Resolution
Share type
Effective datefunding(Yen)(U.S.dollars)(Millions of Yen) (Thousands of U.S.dollars)recordOrdinary general meeting of shareholders,CommonRetained¥2,144$18,973¥28$0.248March 31, 2016 June 30, 2016
June 29, 2016stock
earnings
Information on dividends for the fiscal year ended March 31, 2015 is as follows:(1) Dividends paid
Total dividend
Resolution
Share type(Millions of Yen)
Ordinary general meeting of shareholders,Common stock¥1,302June 27, 2014
Board of directors meeting,Common stock¥1,148
November 5, 2014

Dividend per share(Yen)

Date of record¥17

March 31, 2014

June 30, 2014¥15

September 30, 2014

December 2, 2014

(2) Dividends for which the date of record falls in the fiscal year, but the effective date is after the end of the fiscal year.
Total dividend Dividend per share
Dividend
Resolution
Share type
Date of record
funding(Yen)(Millions of Yen)
Ordinary general meeting of shareholders, Common stock Retained earnings¥1,761¥23
March 31, 2015
June 26, 201527

Effective date

Effective dateJune 29, 2015

12. Cash and Cash Equivalents
Reconciliations of cash and cash equivalents to the amounts shown in the consolidated balance sheet as at March 31, 2016 and 2015 are as follows:
Thousands of U.S.dollars( Note 4 )2016$326,446
13,521
339,967(40,616)(9,742)$289,609

Millions of Yen
Cash and bank deposits
Marketable securities
Sub total
Time deposits due over three months
Marketable securities due over three months
Cash and cash equivalents

2016¥36,888
1,527
38,416(4,589)(1,100)¥32,725

2015¥35,126
1,871
36,998(5,070)(1,401)¥30,526

For the year ended March 31, 2016, the carrying value at the time of sale of the assets and liabilities of the former subsidiary, Scopus-Omnibadges, S.A.S., which
was deconsolidated as a result of its sale, was as follows:
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities¥ 420 million¥ 188 million¥ 608 million¥ 124 million¥ 34 million¥ 158 million(Supplemental disclosure of non-cash transactions)
The significant non-cash transactions for the years ended March 31, 2016 and 2015 are as follows:
Thousands of U.S.dollars( Note 4 )2016$12,186
11,310Millions of Yen
2016¥1,3771,278

Leased assets
Lease obligations2015¥1,1171,707

13. Impairment Loss on Fixed Assets
Impairment loss on fixed assets for the years ended March 31, 2016 and 2015 is summarized as follows:
Millions of Yen

Location

Purpose of use

Category

Amano Corporation (Japan)

Idle assets
Idle assets
Head officeBusiness use

Buildings and structures
Machinery and equipment
Buildings and structures
Other intangible fixed assets
Total

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

2016
–
–
¥236
–
¥236

2015
¥155
0
–
18
¥175

Thousands of U.S.dollars( Note 4 )2016––$2,093–$2,093

Method to Group Assets:
The Company and its subsidiaries group assets according to minimum units that generate cash flows essentially independent from the cash flows of other assets or groups of assets.
Recognition of Impairment Losses:
In the year ended March 31, 2015, certain idle assets related to the manufacturing integration of parking management equipment in Amano Corporation
were identified. In addition, the total amount of projected future cash flows from the business-use assets of Accu-Time Systems, Inc. fell below the bookvalue. As a result, the book values of these assets were reduced to the recoverable amounts, and the reductions were recognized as impairment losses based on
US-GAAP.
In the year ended March 31, 2016, the remarkable change of using method occured in Amano USA Holdings, Inc. As a result, the book values of these assets were reduced to
the recoverable amounts, and the reductions were recognized as impairment losses based on US-GAAP.
Calculation of Recoverable Amount:In the year ended March 31, 2015, the recoverable amount for the idle assets of Amano Corporation is reasonably estimated based on the value in use.
Future cash flows were determined to be zero.
In the year ended March 31, 2016, the recoverable amount for the buildings and structures of Amano USA Holdings, Inc. is a net sale value based on a realestate judgment valuation.

28

14. Other Comprehensive Income
The following table presents reclassification adjustments and tax effects allocated to each component of other comprehensive
income (loss) for the years ended March 31, 2016 and 2015:

2016
(¥68)
–
(68)
(14)
(82)

2015
¥1,293
–
1,293
(335)
958

Thousands of U.S.dollars( Note 4 )2016($602)
–
(602)
(124)
(731)

(1,267)–(1,267)–(1,267)

2,494
(51)
2,442
–
2,442

(11,215)–(11,215)–(11,215)

(652)
167
(485)
129
(356)

(108)
157
48
(58)
(10)

(5,770)1,478(4,292)
1,142(3,152)

(10)
(7)

22
–

(92)
(62)

(17)
(¥1,723)

22¥3,414(154)($15,253)

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

15. Lease Commitments(1) Lessees’ accounting
Minimum future lease payments under operating leases subsequent to March 31, 2016 and 2015 for non-cancelable operating leases are summarized as follows:
Millions of Yen
Due within one year
Due over one year
Total

2016
¥72
513
¥585

2015
¥79
585
¥664

Thousands of U.S.dollars ( Note 4 )
2016
$637
4,540
$5,177(2) Lessors’ accounting
Minimum future lease income under operating leases subsequent to March 31, 2016 and 2015 for non-cancelable operating leases is summarized as follows:
Millions of Yen
Due within one year
Due over one year
Total

2016
¥99
805
¥905

2015
¥99
905
¥1,00429

Thousands of U.S.dollars ( Note 4 )
2016
$876
7,124
$8,00916. Financial Instruments
Overview(1) Management policy
The management policy of the Company is to invest surplus funds into low-risk financial instruments. The Company has not held any high-risk financial instruments.

(2) Financial instruments and their risks
Both notes receivable and accounts receivable as operating receivables are exposed to credit-related losses in the event of nonperformance by counterparties. Trade notes, accounts payable and electronically recorded monetary claims as trade liabilities are due and payable within one year. Marketable securities and investments in securities are exposed to changes inmarket price. The Company holds marketable securities and investments in securities mainly as held-to-maturity or due to relationship-building with counterparties.

(3) Risk management policiesa) Management policy for credit risk (losses in the event of nonperformance by counterparties)
The Company has an established credit management policy, whereby credit risk exposure arising from both notes and accounts receivable is monitored on an ongoing basis in order todetect credit deterioration as well as to trigger appropriate minimizing measures at its early stages.
Held-to-maturity investments are subject to the examination and decision of the Funds Management Review Committee and accordingly, investments largely consist of negotiable
deposits and high graded securities, which are considered to have minimal credit risk.

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

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

(4) Supplementary explanation on the fair value of financial instruments
The fair values of financial instruments are based on quoted market prices. If quoted market prices are unavailable, the fair values are estimated based on the prices which are assessed asreasonable by the Company. Since the Company takes contingent variable factors into account when estimating the fair value, it would vary depending on the different preconditions.

Estimated fair value of financial instruments
Differences between carrying value and estimated fair value as of March 31, 2016 and 2015 are as follows:
Financial instruments whose fair values are difficult to estimate are not stated in the following table; refer to (* 2).

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

Carrying
value¥36,888
34,576
1,350
1,582
6,026
¥80,423¥7,642
6,438¥14,080

Carrying
value¥35,126
32,861
1,350
1,472
5,934
¥76,744¥7,125
6,538¥13,664

Millions of Yen
2016
Estimated
Difference
fair value
in amounts¥36,888–
34,576
–
1,348
1,005
6,026
¥79,844¥7,642
6,438¥14,080

(¥1)
(577)
–
(¥578)–––

Millions of Yen
2015
Estimated
Difference
fair value
in amounts¥35,126–
32,861
–
1,348
991
5,934
¥76,262¥7,125
6,538¥13,664

30

(¥1)
(480)
–
(¥482)–––

Thousands of U.S.dollars ( Note 4 )2016
Carrying
Estimated
Difference
value
fair value
in amounts$326,446$326,446–
305,987
305,987–
11,947
14,00053,327$711,708$67,630
56,974$124,602

11,9298,894
53,327$706,584$67,630
56,974$124,602($9)(5,106)–($5,115)–––

(NOTES)(* 1): Methods to determine the estimated fair value of financial instruments and other matters related to securities and derivative transactions.
Assets:(1) Cash and bank deposits, and (2) Notes and accounts receivable:
Since these items are settled in a short period of time, their carrying value approximates fair value.
(3) Marketable securities and investments in securities:
Since negotiable certificate of deposits are settled in a short period of time, their carrying values approximate fair value.
The fair value of the other stocks is based on quoted market prices. The fair value of debt securities is based on either quoted market prices or prices provided by the financial institutions making markets in these securities. For information on securities classified by holding purpose, please refer to (*5) Heldto-maturity and other securities with readily determinable fair value as at March 31, 2016 and 2015.
Liabilities:(4) Trade notes and accounts payable, and (5) Electronically recorded monetary claims:
Since these items are settled in a short period of time, their carrying value approximates fair value.

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

2016
¥428

2015
¥655

Thousands of U.S.dollars ( Note 4 )2016$3,788The unlisted securities as stated above are not included in (3) Marketable securities and investments in securities because it is difficult to estimate the fair value
based on the quoted market prices in active markets.

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

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

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

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

Due
within 1 year
¥36,888
34,576
1,000
100¥72,564

Millions of Yen
2016
Due after 1 year
Due after 5 years
but within 5 years
but within 10 years
–
–
–
–
¥250
–
¥250

Due
within 1 year
¥35,126
32,861
1,100
300¥69,387

Millions of Yen
2015
Due after 1 year
Due after 5 years
but within 5 years
but within 10 years
–
–
–
–
¥250
100
¥350

Due
within 1 year
$326,446
305,9878,850
885$642,159–––

Thousands of U.S.dollars ( Note 4 )2016
Due after 1 year
Due after 5 years
but within 5 years
but within 10 years––––$2,212–$2,212

31

¥100
–
¥100

$885
–
$885

Due
after 10 years
–
–
–
–
–

Due
after 10 years
–
–
–
–
–

Due
after 10 years
–
–
–
–
–

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

Due within 1 year The second year–¥37
¥1,4481,185¥1,448¥1,222Millions of Yen
2016
The third year The fourth year
¥469
–
917
¥554
¥1,387¥554

The fifth year
–
¥359
¥359

Thereafter
–
¥239
¥239

Millions of Yen

2015
Long-term loans payable
Lease obligations
Total

Due within 1 year The second year–
¥1,282¥1,4101,195¥1,410¥2,478The third year
¥66
930
¥997

The fourth year¥500
668
¥1,168The fifth year
¥31
307
¥339

Thereafter
¥107
279
¥386

Long-term loans payable
Lease obligations
Total

Thousands of U.S.dollars ( Note 4 )2016
Due within 1 year The second year The third year The fourth year
The fifth year–$333
$4,152––$12,823
10,488
8,123$4,909$3,179$12,823$10,821$12,275$4,909$3,179Thereafter–$2,121$2,121(*5) Held-to-maturity and other securities with readily determinable fair value as at March 31, 2016 and 2015 are as follows:
Millions of Yen
2016

Held-to-maturity

Other securities with carrying
value exceeding acquisition cost
StocksOther
		Subtotal
Other securities with carrying
value not exceeding acquisition cost
StocksOther
		Subtotal
		TotalHeld-to-maturity

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

Fair value

Unrealized
gains (losses)¥1,350¥1,348(¥1)

Carrying value

Acquisition
cost¥4,617525
5,143

Thousands of U.S.dollars ( Note 4 )2016
Unrealized
Carrying value
Fair value
gains (losses)$11,947$11,929($9)

Unrealized
gains (losses)

Carrying value

Acquisition
cost

Unrealized
gains (losses)¥2,550519
3,070¥2,067
5
2,072$40,858
4,646
45,513$22,566
4,593
27,168$18,292
44
18,336881
2883¥6,026927
2930¥4,000(46)–(46)¥2,026

7,796
18
7,814
$53,327

8,204
18
8,230
$35,398

(407)
–
(407)
$17,929

Carrying
value¥1,350Millions of Yen
2015
Fair
value
¥1,348

Unrealized
gains (losses)(¥1)

Carrying
value

Acquisition
cost

Unrealized
gains (losses)¥5,064685
5,749¥2,975679
3,654¥2,089
6
2,095

–
184
184
¥5,934–185
185¥3,840–(1)(1)¥2,09432

17. Retirement Benefits
Outline of the retirement benefit plans adopted(1) Defined benefit corporate pension scheme: From March 1, 2009, the Company adopted a defined benefit corporate pension scheme as part of its retirement benefit plan.
(2) Defined contribution pension scheme: From March 1, 2009, the Company adopted a defined contribution pension scheme as part of its retirement benefit plan.
(3) Employees’ pension fund: Since April 1, 1980, the Company has used an multi-employer contributory funded pension plan as a supplement to its existing
retirement benefit scheme.
In addition, certain subsidiaries have lump-sum payment plans and a defined benefit corporate pension plan. They calculate the retirement benefit expenses, andassets and liabilities for retirement benefits by means of a simplified method.
Multi-employer scheme
The required contributions for the employees’ pension fund system, which is a multi-employer pension scheme that is accounted for in the same manner as adefined contribution plan, were ¥ 490 million and ¥ 550 million in the years ended March 31, 2016 and 2015, respectively.
(1) Most recent funded status of the multi-employer plan

As of March
31, 2015¥63,738

As of March
31, 2014¥60,068

Thousands of U.S.dollars( Note 4 )As of March
31, 2015$564,053

75,343(¥11,605)

75,422(¥15,354)

666,752($102,699)

Millions of Yen

Amount of pension assets
Total of amount of pension obligations based onamount of pension financing calculations in thescheme and minimum reserve amount
Net amount(2) Amount paid by the Company as a percentage of contributions to the multi-employer plan
For the year ended March 31, 2014:
For the year ended March 31, 2015:

22.6%
23.0%

(3) Supplemental information
The net amount in (1) above was mainly due to a prior service obligation in pension financing (As of March 31, 2014: ¥ 9,040 million; As of
March 31, 2015: ¥ 8,925 million). The method of amortizing the prior service obligation in this plan is to evenly amortize the principal and interest over a period of 20 years, and special contributions of ¥ 187 million and ¥ 185 million were expensed in the Company’s consolidated financial
statements in the years ended March 31, 2016 and 2015, respectively. The percentage of the Company’s contribution in (2) above does not match
the percentage of its actual pension obligation.
The changes in the retirement benefit obligation for the years ended March 31, 2016 and 2015 are as follows:
Millions of Yen
Balance at the beginning of the year
Cumulative effect of change in accounting principle
Restated balance at the beginning of the year
Service cost
Interest cost
Actuarial loss
Retirement benefits paid
Prior service cost
Other
Balance at the end of the year2016
¥10,999–
10,999
814
80
725
(588)
–
(35)
¥11,9962015¥11,834(1,571)
10,263
749
93
397
(495)
–
(9)
¥10,999

Thousands of U.S.dollars( Note 4 )2016$97,336–
97,336
7,204
708
6,416
(5,204)–(310)$106,159

The changes in plan assets for the years ended March 31, 2016 and 2015 are as follows:
Millions of Yen
Balance at the beginning of the year
Expected return on plan assets
Actuarial loss
Contributions by the Company
Retirement benefits paid
Other
Balance at the end of the year2016
¥8,675
216
19
771
(500)
(0)
¥9,18133

2015¥7,876
196
283
758
(440)
0
¥8,675

Thousands of U.S.dollars( Note 4 )2016$76,770
1,912
168
6,823
(4,425)(0)$81,248

The following table sets forth the funded status of the plans and the amounts recognized in the consolidated balance sheet as of March 31, 2016
and 2015 for the Company’s and the consolidated subsidiaries’ defined benefits plans:
Thousands of U.S.dollars
Millions of Yen( Note 4 )
2016
2015
2016
Funded retirement benefit obligation¥11,873¥10,880$105,071(9,181)(8,675)(81,248)
Plan assets at fair value
2,692
2,204
23,823
123
119
1,088
Unfunded retirement benefit obligation
Net liability for retirement benefits in the balance sheet
2,815
2,324
24,912
Liability for retirement benefits
Asset for retirement benefits
Net liability for retirement benefits in the balance sheet

2,815–¥2,81524,912–$24,9122,324–¥2,324The components of retirement benefit expense for the years ended March 31, 2016 and 2015 are as follows:
Millions of Yen
2016
¥814
80
(216)
224
(3)
¥899

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

2015
¥749
93
(196)
166
(3)
¥808

Thousands of U.S.dollars( Note 4 )2016$7,204708(1,912)
1,982(27)$7,956The components of retirement benefits liability adjustments included in other comprehensive income (before tax effect) for the years ended March
31, 2016 and 2015 are as follows:
Thousands of U.S.dollars
Millions of Yen( Note 4 )
2016
2015
2016
Prior service cost
(¥3)
(¥3)
($27)
(481)
52
(4,257)
Actuarial gain
Total(¥485)¥48($4,292)
The components of retirement benefits liability adjustments included in accumulated other comprehensive income (before tax effect) as of March
31, 2016 and 2015 are as follows:
Thousands of U.S.dollars
Millions of Yen( Note 4 )
2016
2015
2016
Unrecognized prior service cost
¥10
¥14
$88
(1,708)(1,226)(15,115)
Unrecognized actuarial loss
Total(¥1,697)(¥1,212)($15,018)
The fair value of plan assets, by major category, as a percentage of total plan assets as of March 31, 2016 and 2015 is as follows:
Millions of Yen
2016
2015
10%
9%
76%
77%
12%
12%
2%
2%
100%
100%

General accounts
Bonds
StocksOther
Total

The expected return on plan assets has been estimated based on the anticipated allocation to each asset class and the expected long-term returns
on assets held in each category.
The assumptions used in accounting for the above plans were as follows:**They are calculated by the weighted average method.
2016
0.6%
2.5%
5.1%

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

34

2015
1.0%
2.5%
5.1%

For defined benefit plans to which the simplified method is applied, the changes in the retirement benefit obligation for the years ended March 31,
2016 and 2015 are as follows:
Millions of Yen
2016
¥109
43
(38)
(25)
(0)
¥89

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

2015
¥126
33
(28)
(23)
0
¥109

Thousands of U.S.dollars( Note 4 )
2016
$965
381
(336)
(221)
(3)
$788

The following table sets forth the funded status of the plans and the amounts recognized in the consolidated balance sheet as of March 31, 2016
and 2015 for the Company’s and the consolidated subsidiaries’ defined benefits plans:

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

2016
¥176
(210)
(34)
123
89

2015
¥158
(193)
(35)
144
109

Thousands of U.S.dollars( Note 4 )2016$1,558(1,858)
(301)
1,088
788

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

170
(81)
¥89

191
(81)
¥109

1,504
(717)
$788

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

Retirement benefit expenses calculated using the simplified method for the years ended March 31, 2016 and 2015 are as follows:
Millions of Yen
2016
¥43

Retirement benefit expenses

2015
¥33

Thousands of U.S.dollars( Note 4 )
2016
$381

Contributions to defined contribution plans of the Company and its consolidated subsidiaries for the years ended March 31, 2016 and 2015 are as follows:
Millions of Yen
2016
¥379

Contributions to defined contribution plans

35

2015
¥357

Thousands of U.S.dollars( Note 4 )2016$3,354

18. Income Taxes
Deferred tax assets and liabilities (both current and non-current) as at March 31, 2016 and 2015 consisted of the following elements:
Millions of Yen

Deferred tax assets:
Accrued enterprise tax
Accrued employees' bonuses
Accounts payable and long-term accounts payable
Net liability for retirement benefits
Loss carried forward
Loss on write-down of investments in securities
Surplus on allowance for doubtful accounts
Unrealized gains
OthersLess: valuation allowance
Total deferred tax assets
Deferred tax liabilities:
Reserve for advanced depreciation of building
Acquired intangible assets
Unrealized loss on other securities
OthersTotal deferred tax liabilities
Net deferred tax assets

Thousands of U.S.dollars(Note 4)

2016

2015

2016

¥184
828
52
879
1,073
296
125
650
1,207
(1,466)¥4,103

¥122
691
57
778
1,227
311
106
645
1,207
(1,524)¥3,624$1,628
7,327
460
7,779
9,496
2,619
1,106
5,752
10,681(12,973)$36,310

(11)
(11)
(573)
(85)
(682)
¥3,420

(12)
(19)
(559)
(115)
(706)
¥2,918(97)(97)(5,071)(752)(6,035)$30,265

Reconciliation of the effective statutory tax rate and the actual tax rate is shown below:
Effective statutory tax rate
Adjustments:
Entertainment and other nondeductible expenses
Dividends and other nontaxable income
Inhabitant tax on per capita levy
Nondeductible amortization of goodwill
Eliminated dividend received from subsidiaries
Realization of tax benefits on operating losses
Tax credit for research and development expenses
Valuation allowance
Deferred tax assets reduced by change of taxation rates
Difference of foreign subsidiaries' taxation rates
Equity in earnings of affiliates
OthersActual tax rate

2016
33.0%

2015
35.6%

0.6
(1.4)
0.6
2.2
2.1
(1.7)
(0.4)
(0.1)
0.5
(0.2)
(0.4)
1.2
36.0%

0.5
(3.9)
0.8
2.0
3.1
(0.6)
(0.5)
(4.6)
1.2
(1.3)
(0.2)
0.6
32.7%

The “Act for Partial Amendment of the Income Tax Act, etc.” (Act No. 15 of 2016) and the “Act for Partial Amendment of the Local Tax Act, etc.” (Act No.13
of 2016) were promulgated on March 29, 2016. As a result, the effective statutory tax rate used to measure the Company’s deferred tax assets and liabilities waschanged from 32.2% to 30.8% and 30.6% for the temporary differences expected to be realized or settled in the years beginning April 1, 2016 and 2017 and forthe temporary differences expected to be realized or settled from April 1, 2018, respectively. The effect of the announced reduction of the effective statutory tax
rate was to decrease deferred tax assets, after offsetting deferred tax liabilities, by ¥ 11 million ($ 97 thousand), increase deferred income taxes by ¥ 68 million ($601 thousand) and unrealized gain on other securities by ¥ 29 million ($ 256 thousand) and decrease retirement benefits liability adjustments by ¥ 27 million ($238 thousand) as of and for the year ended March 31, 2016.

36

19. Segment Information
The reportable segments of the Company are components for which discrete financial information is available and whose operating results are regularly reviewed by the Executive Committee to make decisions about resource allocation and to assess performance.
The reportable segments are as follows:
1. Time information system business
2. Environment system business(1) Sales, profits or losses, assets and other items by reportable segments
Millions of Yen
2016
Reportable segments
Time information Environment
Total
system business system businessNet sales:
Sales to third parties
Intersegment sales and transfers
		TotalSegment profit or loss
Segment assets
Depreciation and amortization
Impairment loss for fixed assets
Investment in equity-method affiliates
Increase in tangible and intangible fixed assets¥85,462
85,462
12,09963,963
3,345
–
1,582
5,396

¥34,044
34,044
4,576
27,843517––
422¥119,506
119,506
16,67591,806
3,862
–
1,582
5,819

Adjustments/
Eliminations

Consolidated–––(¥3,732)
45,159
552
236
–
827

¥119,506
119,506
12,942
136,965
4,415
236
1,582
6,646

Adjustments/
Eliminations

Consolidated––––(¥2,967)
45,335394––
42¥109,837–
109,837
9,357
131,560
4,137
175
1,695
6,775

Millions of Yen
2015
Reportable segments
Time information
Environment
system business system businessNet sales:
Sales to third parties
Intersegment sales and transfers
		TotalSegment profit or loss
Segment assets
Depreciation and amortization
Impairment loss for fixed assets
Investment in equity-method affiliates
Increase in tangible and intangible fixed assets¥79,477–
79,477
8,961
60,217
3,203
175
1,695
5,711

¥30,360–
30,3603,363
26,007
538
–
–
1,022

Total
¥109,837–
109,837
12,32586,224
3,742
175
1,695
6,733

Thousands of U.S. dollars (Note 4)
2016
Reportable segments
Adjustments/
Time information Environment
Eliminations
Total
system business system businessNet sales:
Sales to third parties
Intersegment sales and transfers
		TotalSegment profit or loss
Segment assets
Depreciation and amortization
Impairment loss for fixed assets
Investment in equity-method affiliates
Increase in tangible and intangible fixed assets$756,302–
756,302
107,072
566,045
29,606–
14,00147,756$301,276–
301,276
40,497
246,402
4,578
–
–
3,743

37

$1,057,578–
1,057,578
147,569
812,447
34,184–14,00151,499–––($33,030)
399,641
4,891
2,093
–
7,322

Consolidated$1,057,578–
1,057,578
114,539
1,212,087
39,0752,093
14,001
58,821

(2) Related Information
Geographic Segments

Information by geographic region for the years ended March 31, 2016 and 2015 is summarized as follows:
Millions of Yen

Net sales:
Japan
North America
OthersTotal

2016¥78,832
18,996
21,677¥119,5062015¥75,013
13,94820,875¥109,837

Millions of Yen

Tangible fixed assets:
Japan
OthersTotal

2016¥20,988
2,601¥23,589

Thousands of U.S.dollars(Note 4)

2016
$697,632
168,107
191,837$1,057,578
Thousands of U.S.dollars(Note 4)2016
$185,736
23,021$208,758

2015¥20,906
3,114¥24,021(3) Information on both “amortization of goodwill” and “unamortized balance” by reportable segments as at and for theyears ended March 31, 2016 and 2015 is summarized as follows:

Amortization of goodwill
Unamortized balance

Millions of Yen
2016
Reportable segments
Time information Environment
Total
system business system business
¥721
68
¥789
¥3,744344¥4,088Eliminations/
Corporate
–
–

Total
¥789
¥4,088Millions of Yen
2015

Amortization of goodwill
Unamortized balance

Reportable segments
Time information
Environment
system business system business¥721
43¥4,456409

Amortization of goodwill
Unamortized balance

Thousands of U.S.dollars (Note 4)
2016
Reportable segments
Eliminations/Time information Environment
Corporate
Total
system business system business$6,383602$6,986––$33,1363,047$36,183

38

Total
¥765
¥4,866

Eliminations/
Corporate
–
–

Total
¥765
¥4,866Total$6,986$36,18320. Per Share Data
Net assets and net income per share as at and for the years ended March 31, 2016 and 2015 are as follows:(1) Net assets per share
Yen

Net assets per share2016¥1,242.86

U.S.dollars (Note 4)2015¥1,198.22

2016$10.999

The basis for these calculations is as follows:
Millions of Yen

Total net assets in consolidated balance sheet
Amount to be deducted from total net assets(Out of the above non-controlling interest portion)
Net assets relating to common stock¥95,606
416(416)
95,190¥92,148375(375)
91,772Thousands of U.S.dollars(Note 4)$846,077
3,685(3,685)842,392

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

76,589,720

76,591,244(2) Net income per share
Yen

2016
¥109.75

Net income per share

U.S.dollars (Note 4)2015¥88.71

2016$0.971

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

2016¥8,405
8,405

Net income in the consolidated statement of income
Net income relating to common stock2015¥6,794
6,794
SharesAverage number of shares ofcommon stock outstanding during the year2016
76,590,480

39

2015
76,592,083

Thousands of U.S.dollars(Note 4)

2016
$74,386
74,386

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

73 Sales Offices Located in major cities,
including

AMANO MANAGEMENT SERVICE CORPORATIONAMANO MAINTENANCE ENGINEERING CORPORATIONAMANO BUSINESS SOLUTIONS 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

Director & Operating Officers

Operating Officers

Kaoru HARUTA

Takeshi AKAGI
Yasuhiro SASAYA
Kunihiro IHARA

Minoru YONEZAWA
Tatsuo NIIHO
Masahiko MORITA
Myeong-Jin JEON
Tetsuhiro KONDO
Jun NAKAKURO
Hiroyuki TSUDA
Yoshikazu TOAKE
Masahiro SAWADA
Sachio OTAKA
Takashi KASAI
Manabu YAMAZAKI

President & Representative Director(Outside) Directors

Izumi NAKAJIMA

Isao KISHI
Kiyoshi KAWASHIMA

Director & Managing Operating Officers(Full-time) Audit & Supervisory Board Members

Hiroshi SHIRAISHI
Isao TERASAKI
Kenji KOHORIHaruhiko YAMAGUCHI
Toru UENO(Outside) Audit & Supervisory Board Members

Yoshiyuki SATO
Takehide ITONAGA

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
13,14

9. ACCU-TECH SYSTEMS, Ltd.
10. AMANO EUROPE HOLDINGS, N.V.
11. AMANO EUROPE, N.V.
12. AMANO TIME&PARKING SPAIN S.A.
13. HOROSMART, S.A.
14. HOROQUARTZ, S.A.
15. HOROQUARTZ MAROC, S.A.
16. AMANO KOREA CORPORATION

17.		AMANO INTERNATIONAL TRADING(SHANGHAI)CO.,LTD.
18.		AMANO SOFTWARE ENGINEERING (SHANGHAI)CO.,LTD.
19.		AMANO MANUFACTURING(SHANGHAI)CO.,LTD.
20.		AMANO PARKING SERVICE LTD.
21.		AMANO MALAYSIA SDN.BHD.
22.		AMANO TIME&AIR SINGAPORE PTE.LTD.
23.		PT.AMANO INDONESIA
24.		AMANO THAI INTERNATIONAL CO.,LTD.

10,11
6

12
16

15

21

5

AMANO CORPORATION

17,18,19
20

8

24
22
23

40

4
3

1,2,7

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