FINANCIAL REPORT
April 2009 March 2010

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

CAT-114900
K9506A2-2010.6

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

2. New Medium-Term Management Plan
[1] Basic Policies
Building on the success of the previous management plan, which aimed at “a strong
profit structure and sustainable growth,” under the new medium-term management
plan the Group is positioning Amano McGann, Inc. of the U.S. and Horosmart, S.A. of
France as key drivers for global development of parking system and information systembusinesses, particularly in the U.S. and Europe, and focusing on business expansion in
Japan.
Amano and its Group companies each continue the tradition of evolving continuously
in response to changes in the times, while maintaining the following four immutablestrategies of the Amano Group.
1) Emphasis on Time & Ecology business fields, and enhancement of core business
2) Being a niche leader in the business fields in which we excel3) Constant restructuring4) Management based on cash flow
Based on these four fundamental strategies, in April 2008 Amano inaugurated a new
three-year medium-term management plan.
However, from the latter part of 2008, the worldwide financial crisis stemming from thesubprime mortgage issue in the U.S. seriously affected the real economy on a global
scale. Since the business environment envisaged when we formulated this mediumterm management plan has changed dramatically.

11. Business Strategy

3. Basic Policy on Distribution of Profits, and Dividend for This and Next Term

• Expanding business in the North American and European markets
In North America we will merge Amano McGann’s parking management softwarewith Amano Group’s software and hardware, and expand the market for parking systems by strengthening direct sales structures to work closely with customers in proposing solutions.
In Europe we will merge Horosmart’s French software, hardware, and customer basewith Amano Group’s software and hardware. We will also expand our information
system business in the French market and use this as a springboard for expansion
into the wider European market, including the UK and the Benelux region.
• Expanding business in the Japanese market
In the Japanese market we will reinforce ties with domestic group companies, particularly in the information system and parking system fields. We will also further
expand our existing customer base and create new markets by strengthening our service and holistic solution capabilities and launching new products.
2. Enhancing Profitability

Amano places great importance on its policy for dividends to shareholders. Fundamental to this is its policy
for the return of profit to shareholders, based on maintaining a stable ordinary dividend of ¥26 annually (¥13
interim and ¥13 year-end), together with appropriate results-based distributions and flexible purchasing oftreasury stock. The Company aims to maintain a payout ratio of at least 35% on a consolidated basis and aratio of dividend to net assets of at least 2.5%.
In line with this policy, we plan to pay a year-end dividend of ¥13 per share, unchanged from the amount
paid at the end of the previous year. As a result, the annual per-share dividend will be ¥26 (including the¥13 per share paid as the interim dividend), ¥4 lower than the previous year. This corresponds to a dividend payout ratio of 197.0% and a 2.7% ratio of dividends to net assets on a consolidated basis.
With regard to the dividend for the next fiscal year, we will aim to pay a dividend for the year of ¥26 (interim
dividend of ¥13, and year-end dividend of ¥13).
Retained earnings will be earmarked for fund effective investment aimed at the fundamental enhancementof the Company’s capacity to conduct its business operations. This will include the expansion and strengthening of existing business fields, strategic investment in growth fields, and spending on research and development, as well as the rationalization of production plant and equipment for the purpose of reducing costs
and further improving product quality.

• Boosting profitability in the information system and parking system businesses
In overseas markets we will increase profitability by implementing our business strategies for Amano McGann and Horosmart to maximize these profitable companies’
contribution to consolidated results. This will be achieved through increased sales
in the North American and European markets, particularly sales of high-added-value
products.
As for the Japanese market, in the information systems field we will continue to standardize large-scale solution systems and increase added value by expanding sales ofsoftware to small and medium-sized businesses. In the parking systems field we will
boost profitability by developing cost-competitive products and strengthening cost
control for each site.
3. Improving Capital Efficiency• Return on equity (ROE)
As well as focusing on enhancing the profitability of all businesses, we will strive toimprove capital efficiency through steps such as flexible purchasing of treasury stock
and aim for ROE of 10.0% on a consolidated basis.

Kaoru Haruta
President and CEO[2] Numerical target plans
The original numerical target plans for fiscal year ended March 31, 2011, were revisedto; Net Sales ¥83.1bn (+5.7% year-to-year), Operating Income ¥3.2bn (+66.1% yearto-year), Ordinary Profit ¥3.5bn (+43.7% year-to-year), Net Income ¥1.3bn (+28.7%
year-to-year).

23

1. Business Strategy

3. Basic Policy on Distribution of Profits, and Dividend for This and Next Term

• Expanding business in the North American and European markets
In North America we will merge Amano McGann’s parking management softwarewith Amano Group’s software and hardware, and expand the market for parking systems by strengthening direct sales structures to work closely with customers in proposing solutions.
In Europe we will merge Horosmart’s French software, hardware, and customer basewith Amano Group’s software and hardware. We will also expand our information
system business in the French market and use this as a springboard for expansion
into the wider European market, including the UK and the Benelux region.
• Expanding business in the Japanese market
In the Japanese market we will reinforce ties with domestic group companies, particularly in the information system and parking system fields. We will also further
expand our existing customer base and create new markets by strengthening our service and holistic solution capabilities and launching new products.
2. Enhancing Profitability

Amano places great importance on its policy for dividends to shareholders. Fundamental to this is its policy
for the return of profit to shareholders, based on maintaining a stable ordinary dividend of ¥26 annually (¥13
interim and ¥13 year-end), together with appropriate results-based distributions and flexible purchasing oftreasury stock. The Company aims to maintain a payout ratio of at least 35% on a consolidated basis and aratio of dividend to net assets of at least 2.5%.
In line with this policy, we plan to pay a year-end dividend of ¥13 per share, unchanged from the amount
paid at the end of the previous year. As a result, the annual per-share dividend will be ¥26 (including the¥13 per share paid as the interim dividend), ¥4 lower than the previous year. This corresponds to a dividend payout ratio of 197.0% and a 2.7% ratio of dividends to net assets on a consolidated basis.
With regard to the dividend for the next fiscal year, we will aim to pay a dividend for the year of ¥26 (interim
dividend of ¥13, and year-end dividend of ¥13).
Retained earnings will be earmarked for fund effective investment aimed at the fundamental enhancementof the Company’s capacity to conduct its business operations. This will include the expansion and strengthening of existing business fields, strategic investment in growth fields, and spending on research and development, as well as the rationalization of production plant and equipment for the purpose of reducing costs
and further improving product quality.

• Boosting profitability in the information system and parking system businesses
In overseas markets we will increase profitability by implementing our business strategies for Amano McGann and Horosmart to maximize these profitable companies’
contribution to consolidated results. This will be achieved through increased sales
in the North American and European markets, particularly sales of high-added-value
products.
As for the Japanese market, in the information systems field we will continue to standardize large-scale solution systems and increase added value by expanding sales ofsoftware to small and medium-sized businesses. In the parking systems field we will
boost profitability by developing cost-competitive products and strengthening cost
control for each site.
3. Improving Capital Efficiency• Return on equity (ROE)
As well as focusing on enhancing the profitability of all businesses, we will strive toimprove capital efficiency through steps such as flexible purchasing of treasury stock
and aim for ROE of 10.0% on a consolidated basis.

Kaoru Haruta
President and CEO[2] Numerical target plans
The original numerical target plans for fiscal year ended March 31, 2011, were revisedto; Net Sales ¥83.1bn (+5.7% year-to-year), Operating Income ¥3.2bn (+66.1% yearto-year), Ordinary Profit ¥3.5bn (+43.7% year-to-year), Net Income ¥1.3bn (+28.7%
year-to-year).

23Analysis of Business Results
Business Results in the Year Ended March 31, 2010

The Japanese economy during the
fiscal year ended March 31, 2010
saw some evidence of economic
recover y and signs of bottomingof capital expenditure on the backof an increase in exports. This was
supported by factors including economic growth in Asian countries.
However, difficult circumstances
continued as the employment andincome environment remained sluggish.

Amid this business environment, weemphasized Group growth strategies based on our new mediumter m management plan. While
working to globally develop products and markets and enhance ourcapacity to provide holistic solutions,the entire company focused on the
in-depth cultivation of client needs
and continued effor ts to reduce
cost of sales and selling, general andadministrative expenses.

As a result of the above, during theyear the Company recorded salesof ¥78,586 million, down by 14.4%
year-on-year. Operating profit fell by
64.1% to ¥1,927 million, ordinar yprofit declined by 54.0% to ¥2,436
million, and net income dropped by
54.3% to ¥1,011 million.
The following is an overview of sales
by business division.

(Unit: Millions of yen)

Year ended
March 31, 2010

ChangeApril 1, 2008 to March 31, 2009 April 1, 2009 to March 31, 2010
Ratio (%)

Time Information System BusinessAmount%Ratio (%)

Amount%%%Information Systems

19,84821.6

17,44022.2(2,408)(12.1)

Time Management Equipment

5,361

5.8

4,316

5.5

(1,045)(19.5)

Parking Systems

38,96842.5

37,78648.1(1,182)(3.0)

Subtotal

64,17769.9

59,542

75.8(4,635)(7.2)

Environmental Systems

19,066

20.8

11,521

14.6(7,545)(39.6)

Cleaning Systems

8,569

9.3

7,523

9.6

(1,046)(12.2)

Subtotal

27,63530.1

19,04424.2(8,591)(31.1)

Total

91,812

100.0

78,586100.0(13,226)(14.4)

Environment System Business4• Time Management Equipment:
Time recorders, and time stamps

Information Systems

Sales by business division

Amount• Information Systems:
Time & attendance (T&A), payroll,human-resource management,
access control, and cafeteria management systems• Parking Systems
Parking and bicycle-parking space
management equipment, andmanagement services

However, the impact of decreased
demand due to our clients’ increasing unwillingness for capital spending
exceeded our expectations by asignificant margin.

Year ended
March 31, 2009

Time Information Systems BusinessThis business division has continued
to experience a tough business environment in the domestic market
due to factors including flagging demand, reflecting less IT investmentsby companies, in addition to growing
competition in the market, despite
signs of economic recovery. Meanwhile, the environment surrounding
the business in this segment has
been undergoing a significant shift
from a period of owning systems toa period of utilizing them, with anincreasingly prominent movementin the industry toward cloud computing which is known as the nextgeneration business.
Under these circumstances, theCompany has focused on strengthening its operating activities byholding private seminars throughout Japan andproviding solutions to existing customers.
The aim wasto capitalize on
oppor tunities
ar ising out of

demands such as system renewal
and program modifications, in order
to comply with the Revised Labor
Standards Act by the time it cameinto force on April 1, 2010. In addition, the Company has worked on
expanding demand for Application
Ser vice Provider (ASP) ser vices
by reinforcing alliances with Group
companies in Japan in order to respond to the needs in the marketplace.
During the year, hardware sales
declined by ¥1,292 million (20.6%)
year-on-year, due to factors including
a decrease in orders for large projects. Software sales decreased by¥239 million (6.3%), and sales generated by maintenance contracts andsupplies ser vices slipped by ¥224
million (7.0%). Although softwaresales decreased compared with theprevious fiscal year, the number ofpieces of software sold increased
year-on-year as a result of increased
demand in association with activities
to comply with the Revised Labor
Standards Act in the fourth quarter.
As a result, T&A system sales were
down by ¥1,413 million (14.4%),
while access control system sales
slipped by ¥300 million (22.7%).
While European sales remained
strong with increased revenue on
a local currency basis, driven by thesolid growth of Horosmar t S.A.,
exchange rate fluctuations resulted
in reduced revenue on a yen basis.
Sales decreased in Nor th America and Asia. Total overseas sales
dropped ¥648 million (down 10.8%
year-on-year).
As a net result of the above, overallsales in this business division totaled¥17,440 million, representing a decrease of 12.1% from the previous
year.

5

Time Management Equipment
This segment continues to face a difficult business environment in Japanas a result of a continued decreasein unit sales due to factors includinga shift toward low-cost units, in addition to a drop in the number of
new store openings and the sluggish
demand for replacements.
In order to combat this mar ket
environment, Amano has been making efforts to cultivate demand for
replacement and developing newmarkets. These include launchinga new type of time recorder, witha low-cost design that offers highfunctionality, and an IC-type time
recorder which can be connected
to a PC with enhanced usability andecological elements.
During the year, aggregate sales
including exports fell by ¥545 million (14.7%) year-on-year, despite apositive effect from launching new
products in the domestic market.
As overseas demand remained sluggish during the period across North
America, Europe and Asia, overall
overseas sales were down by ¥663
million (a year-on-year decrease of
30.5%).
As a result of the above, the time
management equipment businessdivision generated sales totaling¥4,316 million, down by 19.5% fromthe previous year.

Parking Systems
This segment saw moderate recovery
in demand both for new and renewal
projects in Japan. Amid the recovery
in car sales supported by economic
measures including subsidies for those
who are purchasing new cars for
replacement, parking lot occupancy

Analysis of Business Results
Business Results in the Year Ended March 31, 2010

The Japanese economy during the
fiscal year ended March 31, 2010
saw some evidence of economic
recover y and signs of bottomingof capital expenditure on the backof an increase in exports. This was
supported by factors including economic growth in Asian countries.
However, difficult circumstances
continued as the employment andincome environment remained sluggish.

Amid this business environment, weemphasized Group growth strategies based on our new mediumter m management plan. While
working to globally develop products and markets and enhance ourcapacity to provide holistic solutions,the entire company focused on the
in-depth cultivation of client needs
and continued effor ts to reduce
cost of sales and selling, general andadministrative expenses.

As a result of the above, during theyear the Company recorded salesof ¥78,586 million, down by 14.4%
year-on-year. Operating profit fell by
64.1% to ¥1,927 million, ordinar yprofit declined by 54.0% to ¥2,436
million, and net income dropped by
54.3% to ¥1,011 million.
The following is an overview of sales
by business division.

(Unit: Millions of yen)

Year ended
March 31, 2010

ChangeApril 1, 2008 to March 31, 2009 April 1, 2009 to March 31, 2010
Ratio (%)

Time Information System BusinessAmount%Ratio (%)

Amount%%%Information Systems

19,84821.6

17,44022.2(2,408)(12.1)

Time Management Equipment

5,361

5.8

4,316

5.5

(1,045)(19.5)

Parking Systems

38,96842.5

37,78648.1(1,182)(3.0)

Subtotal

64,17769.9

59,542

75.8(4,635)(7.2)

Environmental Systems

19,066

20.8

11,521

14.6(7,545)(39.6)

Cleaning Systems

8,569

9.3

7,523

9.6

(1,046)(12.2)

Subtotal

27,63530.1

19,04424.2(8,591)(31.1)

Total

91,812

100.0

78,586100.0(13,226)(14.4)

Environment System Business4• Time Management Equipment:
Time recorders, and time stamps

Information Systems

Sales by business division

Amount• Information Systems:
Time & attendance (T&A), payroll,human-resource management,
access control, and cafeteria management systems• Parking Systems
Parking and bicycle-parking space
management equipment, andmanagement services

However, the impact of decreased
demand due to our clients’ increasing unwillingness for capital spending
exceeded our expectations by asignificant margin.

Year ended
March 31, 2009

Time Information Systems BusinessThis business division has continued
to experience a tough business environment in the domestic market
due to factors including flagging demand, reflecting less IT investmentsby companies, in addition to growing
competition in the market, despite
signs of economic recovery. Meanwhile, the environment surrounding
the business in this segment has
been undergoing a significant shift
from a period of owning systems toa period of utilizing them, with anincreasingly prominent movementin the industry toward cloud computing which is known as the nextgeneration business.
Under these circumstances, theCompany has focused on strengthening its operating activities byholding private seminars throughout Japan andproviding solutions to existing customers.
The aim wasto capitalize on
oppor tunities
ar ising out of

demands such as system renewal
and program modifications, in order
to comply with the Revised Labor
Standards Act by the time it cameinto force on April 1, 2010. In addition, the Company has worked on
expanding demand for Application
Ser vice Provider (ASP) ser vices
by reinforcing alliances with Group
companies in Japan in order to respond to the needs in the marketplace.
During the year, hardware sales
declined by ¥1,292 million (20.6%)
year-on-year, due to factors including
a decrease in orders for large projects. Software sales decreased by¥239 million (6.3%), and sales generated by maintenance contracts andsupplies ser vices slipped by ¥224
million (7.0%). Although softwaresales decreased compared with theprevious fiscal year, the number ofpieces of software sold increased
year-on-year as a result of increased
demand in association with activities
to comply with the Revised Labor
Standards Act in the fourth quarter.
As a result, T&A system sales were
down by ¥1,413 million (14.4%),
while access control system sales
slipped by ¥300 million (22.7%).
While European sales remained
strong with increased revenue on
a local currency basis, driven by thesolid growth of Horosmar t S.A.,
exchange rate fluctuations resulted
in reduced revenue on a yen basis.
Sales decreased in Nor th America and Asia. Total overseas sales
dropped ¥648 million (down 10.8%
year-on-year).
As a net result of the above, overallsales in this business division totaled¥17,440 million, representing a decrease of 12.1% from the previous
year.

5

Time Management Equipment
This segment continues to face a difficult business environment in Japanas a result of a continued decreasein unit sales due to factors includinga shift toward low-cost units, in addition to a drop in the number of
new store openings and the sluggish
demand for replacements.
In order to combat this mar ket
environment, Amano has been making efforts to cultivate demand for
replacement and developing newmarkets. These include launchinga new type of time recorder, witha low-cost design that offers highfunctionality, and an IC-type time
recorder which can be connected
to a PC with enhanced usability andecological elements.
During the year, aggregate sales
including exports fell by ¥545 million (14.7%) year-on-year, despite apositive effect from launching new
products in the domestic market.
As overseas demand remained sluggish during the period across North
America, Europe and Asia, overall
overseas sales were down by ¥663
million (a year-on-year decrease of
30.5%).
As a result of the above, the time
management equipment businessdivision generated sales totaling¥4,316 million, down by 19.5% fromthe previous year.

Parking Systems
This segment saw moderate recovery
in demand both for new and renewal
projects in Japan. Amid the recovery
in car sales supported by economic
measures including subsidies for those
who are purchasing new cars for
replacement, parking lot occupancyrates improved in line with an increased car usage and this resulted in
the resumption of renewal projects
which had been postponed. Anotherfactor behind the recovery is advancement in “Scrap and Rebuild” plans of
unprofitable parking lots by parking
management companies.
In the operational environment surrounding the parking business, thenumber of new initiatives reflecting the motorized society has been
increasing. These include measuresagainst greenhouse gas emissions,
efforts to build park-and-ride parking spaces which aim to ease traffic
congestion, introduction of car sharing
services, and an expansion of charging
stations for electric vehicles. As a resultof the above, parking space management that focuses on the needs ofparking lot users has become increasingly important.
Amid this market environment, theCompany has been striving to spurdemand for replacement by focusing on making proposals from thecustomer’s perspective, emphasizing
areas such as higher profitability andefficiency of parking space management and reinforcing its provision ofsolutions in collaboration with Group
companies in Japan.
In the market for exclusive gate systems, the Company has also focusedon cultivating new markets to promote safety and security in addition
to encouraging efforts for labor saving
and rationalization.
Sales of car and bicycle parking system
devices decreased by ¥1,473 million(10.4%) from a year earlier due to adecrease in orders for large projects,
while revenues from maintenancecontracts and supplies services increased by ¥197 million (2.4%).
The number of parking spaces man-aged by Group subsidiar y, Amano
Management Service Corporation inits commissioned parking lot management business increased by 24,400(16.1%) from the end of the previous
fiscal year.
Overseas, sales in North America andEurope declined due to the deteriorating economic climate while revenue in Asia increased from the previous year as a result of double-digit
growth in South Korea and Malaysia.
Overall, overseas sales decreased by¥1,510 million, down 11.9% year-onyear.
As a net result of the above, the Parking Systems business division provided
sales totaling ¥37,786 million, a dropof 3.0% from the previous year.

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

projects that had been frozen or postponed in the past.
In an effort to ride out this economic
environment, Amano has been devoting efforts to stimulate demand bystrengthening direct sales to existingcustomers through activities including
dust explosion prevention seminars
as a measure to promote safety andsecurity, aimed at compliance with environmental legislation and proposals
on labor-savings and cost cuts.
Revenue from this segment dropped
substantially during the period. As a
breakdown, sales of large-scale systems fell by ¥3,449 million (46.0%)
year-on-year while revenue from standard equipment declined by ¥2,584
million (41.9%), and revenue frommaintenance contracts and supplies
services decreased by ¥964 million(25.5%).
Overseas operations remained sluggish with a decline in orders, reflecting reduced capital investment by
Japanese companies operating in Asia.
Overall overseas sales fell by ¥469
million (down 40.6% year-on-year).
As a result of the above, sales of thisbusiness division totaled ¥11,521 million, down by 39.6% year-on-year.

Environmental Systems
As capital expenditure by manufacturers remained sluggish in Japan, thisbusiness division continued to face achallenging operational environment
despite a prominent recovery in demand in the electric device-related
segment such as liquid crystal andsemiconductor products in addition
to the movement toward resuming

6

Cleaning Systems
This business division continued to
face a difficult business environment
in Japan with fewer new commercial
facilities opened and capital investment in the factory market remain-

ing sluggish, despite a shift fromoutsourcing to in-house cleaning inan effort to curb cleaning costs.
In an effort to fight against the prevailing conditions, the Company has
focused on stimulating demand by
rolling out demonstrations of cleaning machines throughout Japan. The
aim is to obtain oppor tunities formaking specific proposals leveraging
the effect of lower cleaning costs.
In addition to falling demand for
buffing machines from the previ-

Analysis of Financial Condition(i) Assets, Liabilities, and Net Assets• Assets
Total assets at March 31, 2010,
amounted to ¥100,687 million, downby ¥1,505 million from the previous fiscal year-end. Current assets
increased by ¥2,095 million yearon-year. This was chiefly due to a¥4,956 million increase in cash andbank deposits despite a reduction of¥2,517 million in notes and accounts
receivable. Fixed assets decreased by¥3,600 million year-on-year. This was
attributable primarily to a reductionof ¥1,634 million in intangible fixed
assets and a ¥1,580 decrease in longterm deposits.

ous fiscal year, sales of floor cleaning equipment were affected by
reduced capital investment in floor
cleaning machines for factories.
Consequently, year-on-year sales declined by ¥422 million (17.1%). Revenues from maintenance contracts
and supplies services were down by¥202 million (6.3%).
Over seas sales in this segment
slowed in North America, Europe,and Asia. Overall, overseas sales
decreased by ¥293 million (down

14.9% year-on-year).
As a result of the above, sales inthis segment totaled ¥7,523 million,
down by 12.2% from the previous
year.

• Liabilities
Total liabilities at the fiscal year-end
amounted to ¥25,719 million, downby ¥1,078 million year-on-year. Current liabilities dropped ¥761 million
year-on-year. This was largely due todecreases in accounts payable andaccrued expenses among others, aswell as a reduction of ¥1,053 million
in other current liabilities. Fixed liabilities decreased by ¥317 million yearon-year. The principal factors behind
this were a reduction of ¥391 million
in long-term accounts payable anda ¥324 million decrease in accrued
retirement benefits for employees despite a ¥512 million increase in leaseobligations.

• Net Assets
Total net assets at March 31, 2010
amounted to ¥74,968 million, downby ¥427 million from the previous fiscal year-end. This was primarily due toa reduction of ¥1,150 million in total
retained earnings with factors including dividends from surpluses, despite
an increase of ¥590 million in total
valuation and translation adjustments
resulting from a rise in foreign currency translation adjustments, etc.

7SE-430e(ii) Cash Flows
Consolidated cash and cash equivalents increased by ¥4,224 million fromthe previous fiscal year-end, to a totalof ¥20,933 million on March 31, 2010.
More specifically, a description of thestatus of each type of cash flow at the
year-end and the underlying factors
are as follows.

rates improved in line with an increased car usage and this resulted in
the resumption of renewal projects
which had been postponed. Anotherfactor behind the recovery is advancement in “Scrap and Rebuild” plans of
unprofitable parking lots by parking
management companies.
In the operational environment surrounding the parking business, thenumber of new initiatives reflecting the motorized society has been
increasing. These include measuresagainst greenhouse gas emissions,
efforts to build park-and-ride parking spaces which aim to ease traffic
congestion, introduction of car sharing
services, and an expansion of charging
stations for electric vehicles. As a resultof the above, parking space management that focuses on the needs ofparking lot users has become increasingly important.
Amid this market environment, theCompany has been striving to spurdemand for replacement by focusing on making proposals from thecustomer’s perspective, emphasizing
areas such as higher profitability andefficiency of parking space management and reinforcing its provision ofsolutions in collaboration with Group
companies in Japan.
In the market for exclusive gate systems, the Company has also focusedon cultivating new markets to promote safety and security in addition
to encouraging efforts for labor saving
and rationalization.
Sales of car and bicycle parking system
devices decreased by ¥1,473 million(10.4%) from a year earlier due to adecrease in orders for large projects,
while revenues from maintenancecontracts and supplies services increased by ¥197 million (2.4%).
The number of parking spaces man-aged by Group subsidiar y, Amano
Management Service Corporation inits commissioned parking lot management business increased by 24,400(16.1%) from the end of the previous
fiscal year.
Overseas, sales in North America andEurope declined due to the deteriorating economic climate while revenue in Asia increased from the previous year as a result of double-digit
growth in South Korea and Malaysia.
Overall, overseas sales decreased by¥1,510 million, down 11.9% year-onyear.
As a net result of the above, the Parking Systems business division provided
sales totaling ¥37,786 million, a dropof 3.0% from the previous year.

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

projects that had been frozen or postponed in the past.
In an effort to ride out this economic
environment, Amano has been devoting efforts to stimulate demand bystrengthening direct sales to existingcustomers through activities including
dust explosion prevention seminars
as a measure to promote safety andsecurity, aimed at compliance with environmental legislation and proposals
on labor-savings and cost cuts.
Revenue from this segment dropped
substantially during the period. As a
breakdown, sales of large-scale systems fell by ¥3,449 million (46.0%)
year-on-year while revenue from standard equipment declined by ¥2,584
million (41.9%), and revenue frommaintenance contracts and supplies
services decreased by ¥964 million(25.5%).
Overseas operations remained sluggish with a decline in orders, reflecting reduced capital investment by
Japanese companies operating in Asia.
Overall overseas sales fell by ¥469
million (down 40.6% year-on-year).
As a result of the above, sales of thisbusiness division totaled ¥11,521 million, down by 39.6% year-on-year.

Environmental Systems
As capital expenditure by manufacturers remained sluggish in Japan, thisbusiness division continued to face achallenging operational environment
despite a prominent recovery in demand in the electric device-related
segment such as liquid crystal andsemiconductor products in addition
to the movement toward resuming

6

Cleaning Systems
This business division continued to
face a difficult business environment
in Japan with fewer new commercial
facilities opened and capital investment in the factory market remain-

ing sluggish, despite a shift fromoutsourcing to in-house cleaning inan effort to curb cleaning costs.
In an effort to fight against the prevailing conditions, the Company has
focused on stimulating demand by
rolling out demonstrations of cleaning machines throughout Japan. The
aim is to obtain oppor tunities formaking specific proposals leveraging
the effect of lower cleaning costs.
In addition to falling demand for
buffing machines from the previ-

Analysis of Financial Condition(i) Assets, Liabilities, and Net Assets• Assets
Total assets at March 31, 2010,
amounted to ¥100,687 million, downby ¥1,505 million from the previous fiscal year-end. Current assets
increased by ¥2,095 million yearon-year. This was chiefly due to a¥4,956 million increase in cash andbank deposits despite a reduction of¥2,517 million in notes and accounts
receivable. Fixed assets decreased by¥3,600 million year-on-year. This was
attributable primarily to a reductionof ¥1,634 million in intangible fixed
assets and a ¥1,580 decrease in longterm deposits.

ous fiscal year, sales of floor cleaning equipment were affected by
reduced capital investment in floor
cleaning machines for factories.
Consequently, year-on-year sales declined by ¥422 million (17.1%). Revenues from maintenance contracts
and supplies services were down by¥202 million (6.3%).
Over seas sales in this segment
slowed in North America, Europe,and Asia. Overall, overseas sales
decreased by ¥293 million (down

14.9% year-on-year).
As a result of the above, sales inthis segment totaled ¥7,523 million,
down by 12.2% from the previous
year.

• Liabilities
Total liabilities at the fiscal year-end
amounted to ¥25,719 million, downby ¥1,078 million year-on-year. Current liabilities dropped ¥761 million
year-on-year. This was largely due todecreases in accounts payable andaccrued expenses among others, aswell as a reduction of ¥1,053 million
in other current liabilities. Fixed liabilities decreased by ¥317 million yearon-year. The principal factors behind
this were a reduction of ¥391 million
in long-term accounts payable anda ¥324 million decrease in accrued
retirement benefits for employees despite a ¥512 million increase in leaseobligations.

• Net Assets
Total net assets at March 31, 2010
amounted to ¥74,968 million, downby ¥427 million from the previous fiscal year-end. This was primarily due toa reduction of ¥1,150 million in total
retained earnings with factors including dividends from surpluses, despite
an increase of ¥590 million in total
valuation and translation adjustments
resulting from a rise in foreign currency translation adjustments, etc.

7SE-430e(ii) Cash Flows
Consolidated cash and cash equivalents increased by ¥4,224 million fromthe previous fiscal year-end, to a totalof ¥20,933 million on March 31, 2010.
More specifically, a description of thestatus of each type of cash flow at the
year-end and the underlying factors
are as follows.

(2) Cash flow from investing activities
Net cash used in investing activities
declined to ¥2,412 million. This waslargely due to an increase in time
deposits amounting to ¥4,625 million,
payment for acquisition of securities
amounting to ¥2,029 million, payment
for purchase of tangible fixed assets
totaling ¥1,657 million, and payment
for acquisition of intangible fixed assets amounting to ¥1,639 million,(1) Cash flow from operating activities
Net cash provided by operating activities totaled ¥9,064 million. This was
attributable primarily to depreciation and amortization amounting to¥4,676 million, a reduction of ¥2,661
million in trade notes and accounts
receivable, and income before income
taxes totaling ¥2,366 million, among
others, despite the fact that we posted¥1,303 million in income taxes paid.

among others, despite the fact that
we posted proceeds from withdrawalof time deposits amounting to ¥5,207
million and proceeds from redemption of securities totaling ¥2,000 million.
(3) Cash flow from financing activities
Net cash used in financing activities
declined to ¥2,383 million. This waschiefly due to ¥1,992 million paid as
dividends.

Reference: Trend of cash flow indicators
At Mar. 31, 2006

At Mar. 31, 2007

At Mar. 31, 2008

At Mar. 31, 2009

At Mar. 31, 2010

Equity ratio (%)

74.8

74.4

73.0

72.9

73.4

Fair value equity ratio (%)

156.0

103.6

70.6

58.8

64.7

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

42.2

36.2

17.5

24.1

17.1

Interest coverage ratio

88.1

125.3

166.6

200.7

250.6

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).
* Cash flow from operating activities refers to cash flow from operating activities posted under the consolidated statementsof cash flows. Interest-bearing liabilities refers to those of the liabilities stated in the consolidated balance sheets on whichinterest is paid. Interest payments equate with interest paid stated in the consolidated statements of cash flows.

Outlook for the Fiscal
Year Ending March 31,
2011
Against the backdrop of a continuous recovery in the global economy,
especially in emerging countries suchas China, exports are expected toremain on an upward path, supporting the domestic production during
the next fiscal year. However, a fullfledged recover y of the Japanese

economy will be hindered by the
prolonged perception of excessive
employment and capital investment.
Amid this business environment,
Amano Corporation and its groupcompanies launched a new medium-term management plan coveringa period of three years from April
2008. In line with the Group growthstrategies set out in the plan, we
will work to drive ongoing growththrough the global development ofmarkets and products in each of our

8business fields and to improve profitability by creating new business,and committing greater effor ts toaddress accumulation business.
The following business results areprojected for the fiscal year ending March 31, 2011: Sales ¥83,100
million, operating profit ¥3,200 million, ordinary profit ¥3,500 million,
and net income ¥1,300 million. The
above projections assume currency
exchange rates of US$1 to ¥92 and€1 to ¥123.

Operating and Other Risk
Among the matters relating to thequalitative information contained inthese summary financial statements
and relating to the consolidated
financial statements, the following
are those that could be envisaged ashaving a possible material impact on
investors.
Matters that are considered to bepotential risk factors in the undertaking of business by the Amano
Group either now or in the future
are estimated to the greatest extent
possible, and the risk factors arethen addressed and eliminated in
the course of business activities.
Matters relating to the future arethose that are adjudged to be so asof the date of the release of thesefinancial results (May 7, 2010).
(i) Impact on earnings due tochanges in the business environ
ment
The Amano Group uses its accumulation of unique technologies andknow-how to provide customers
with high-quality products, services
and solutions, gaining large market
shares in each sphere of business inJapan, North America, Europe, andAsia, and developing business globally.
In the year ended March 31, 2010,
the time information system business accounted for 75.8% of total
sales, and the environment systembusiness accounted for 24.2%. Before deduction of unallocated expenses the time information systembusiness contributed 96.5% to operating profit, while the environment
system business contributed 3.5%.
In terms of weighted average sales
over the most recent five year s,time information system businessaccounted for 68.7% of total sales
and for 71.8% of operating profit.
With respect to future risk factors,
in each business activity within thetime information system businesssegment, which accounts for a large
proportion of the Group’s business,
if market expansion is expected forsuch reasons as a significant change
in the demand str ucture or thecreation of a new market, it can be
expected that this will attract entry
by entities in other industries orby other powerful competitors. In
that event, if a competitor were toenter with innovative products orsolutions that surpass Amano’s, theAmano Group’s market advantage
would decline, and that may have amaterial impact on its business performance.
(ii) Fluctuations in exchange rates
The Group engages in businessactivities on a global scale and has
production and sales bases overseas.
In view of this, the Group’s business results may be impacted byfluctuations in exchange rates whentransaction amounts overseas areconverted into yen.

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

(2) Cash flow from investing activities
Net cash used in investing activities
declined to ¥2,412 million. This waslargely due to an increase in time
deposits amounting to ¥4,625 million,
payment for acquisition of securities
amounting to ¥2,029 million, payment
for purchase of tangible fixed assets
totaling ¥1,657 million, and payment
for acquisition of intangible fixed assets amounting to ¥1,639 million,(1) Cash flow from operating activities
Net cash provided by operating activities totaled ¥9,064 million. This was
attributable primarily to depreciation and amortization amounting to¥4,676 million, a reduction of ¥2,661
million in trade notes and accounts
receivable, and income before income
taxes totaling ¥2,366 million, among
others, despite the fact that we posted¥1,303 million in income taxes paid.

among others, despite the fact that
we posted proceeds from withdrawalof time deposits amounting to ¥5,207
million and proceeds from redemption of securities totaling ¥2,000 million.
(3) Cash flow from financing activities
Net cash used in financing activities
declined to ¥2,383 million. This waschiefly due to ¥1,992 million paid as
dividends.

Reference: Trend of cash flow indicators
At Mar. 31, 2006

At Mar. 31, 2007

At Mar. 31, 2008

At Mar. 31, 2009

At Mar. 31, 2010

Equity ratio (%)

74.8

74.4

73.0

72.9

73.4

Fair value equity ratio (%)

156.0

103.6

70.6

58.8

64.7

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

42.2

36.2

17.5

24.1

17.1

Interest coverage ratio

88.1

125.3

166.6

200.7

250.6

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).
* Cash flow from operating activities refers to cash flow from operating activities posted under the consolidated statementsof cash flows. Interest-bearing liabilities refers to those of the liabilities stated in the consolidated balance sheets on whichinterest is paid. Interest payments equate with interest paid stated in the consolidated statements of cash flows.

Outlook for the Fiscal
Year Ending March 31,
2011
Against the backdrop of a continuous recovery in the global economy,
especially in emerging countries suchas China, exports are expected toremain on an upward path, supporting the domestic production during
the next fiscal year. However, a fullfledged recover y of the Japanese

economy will be hindered by the
prolonged perception of excessive
employment and capital investment.
Amid this business environment,
Amano Corporation and its groupcompanies launched a new medium-term management plan coveringa period of three years from April
2008. In line with the Group growthstrategies set out in the plan, we
will work to drive ongoing growththrough the global development ofmarkets and products in each of our

8business fields and to improve profitability by creating new business,and committing greater effor ts toaddress accumulation business.
The following business results areprojected for the fiscal year ending March 31, 2011: Sales ¥83,100
million, operating profit ¥3,200 million, ordinary profit ¥3,500 million,
and net income ¥1,300 million. The
above projections assume currency
exchange rates of US$1 to ¥92 and€1 to ¥123.

Operating and Other Risk
Among the matters relating to thequalitative information contained inthese summary financial statements
and relating to the consolidated
financial statements, the following
are those that could be envisaged ashaving a possible material impact on
investors.
Matters that are considered to bepotential risk factors in the undertaking of business by the Amano
Group either now or in the future
are estimated to the greatest extent
possible, and the risk factors arethen addressed and eliminated in
the course of business activities.
Matters relating to the future arethose that are adjudged to be so asof the date of the release of thesefinancial results (May 7, 2010).
(i) Impact on earnings due tochanges in the business environ
ment
The Amano Group uses its accumulation of unique technologies andknow-how to provide customers
with high-quality products, services
and solutions, gaining large market
shares in each sphere of business inJapan, North America, Europe, andAsia, and developing business globally.
In the year ended March 31, 2010,
the time information system business accounted for 75.8% of total
sales, and the environment systembusiness accounted for 24.2%. Before deduction of unallocated expenses the time information systembusiness contributed 96.5% to operating profit, while the environment
system business contributed 3.5%.
In terms of weighted average sales
over the most recent five year s,time information system businessaccounted for 68.7% of total sales
and for 71.8% of operating profit.
With respect to future risk factors,
in each business activity within thetime information system businesssegment, which accounts for a large
proportion of the Group’s business,
if market expansion is expected forsuch reasons as a significant change
in the demand str ucture or thecreation of a new market, it can be
expected that this will attract entry
by entities in other industries orby other powerful competitors. In
that event, if a competitor were toenter with innovative products orsolutions that surpass Amano’s, theAmano Group’s market advantage
would decline, and that may have amaterial impact on its business performance.
(ii) Fluctuations in exchange rates
The Group engages in businessactivities on a global scale and has
production and sales bases overseas.
In view of this, the Group’s business results may be impacted byfluctuations in exchange rates whentransaction amounts overseas areconverted into yen.

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

Business Activities

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

system and reducing development costs by
expanding our hardware lineup. As a meansof expanding our business, we will also extend sales channels for software productsof Horosmart, S.A. (France) across Europe
and reinforce our organizational structures
toward globalization.

1) Time information systems•Parking systems business•Information systems business

The parking systems business continues tosee moderate recovery in demand both for
new and renewal projects in Japan. Amid therecovery in car sales supported by economic
measures including subsidies for those whoare purchasing new cars to replace their oldones, parking lot occupancy rates improvedin line with increased car usage and this resulted in the resumption of renewal projects
which had been postponed. Another factor
behind the recovery is advancement in “Scrap
and Rebuild” plans of unprofitable parking
lots by parking management companies. In
the operational environment surrounding
the parking business, the number of new
initiatives reflecting the motorized society
has been increasing. These include measuresagainst greenhouse gas emissions, efforts tobuild park-and-ride parking spaces which
aim to ease traffic congestion, introductionof car sharing services, and an increase in the
charging stations for electric vehicles. As aresult of the above, parking space management that focuses on the needs of parking
lot users has become increasingly important.
In this environment we will focus on making
proposals from the customer’s perspectivewith an emphasis on areas such as higher
profitability and efficiency of parking space
management. We will steadily meet theneeds of existing customers by offering highvalue-added products with network capabilities and in-built IT functions and forging
ahead with the holistic solutions business,
including maintenance and parking lot management services in close collaboration withGroup companies.
In the market for bicycle parks that hasarisen as a result of the problem of abandoned bicycles, we will seek to revitalize andexpand the market by proactively making
proposals on ecology-oriented initiatives
including rental cycle and community cycle
systems with the aim of reducing CO2 emissions. In the market for exclusive gate systems controlling entry and exit to and fromsites such as factories, we aim to expand the
new market with the emphasis on safety
and security in addition to making proposals
on labor-savings and rationalization.
In order to boost profitability, we will makeefforts including standardization of specialorder products, strengthening of profit control for each site and self-manufacturing ofpurchased products, among others.

Issues to Be Addressed

Amid continuing efforts by the labor authorities to more strictly monitor unpaid overtimeand long working hours (overwork) in orderto eradicate these practices as well as an increasing need to deal with risks surrounding
employment, such as industrial court cases
resulting from deteriorating employment
conditions, there is strong potential demand
among companies to establish or rebuild T&A
systems. The aim is to create a companywide labor time management system tooptimize business operations by reducing
working hours, improving work efficiency andcutting costs, etc. In addition, we will aim tostrengthen measures for compliance toward
appropriately managing working hours. However, market conditions remain tough due
to sluggish demand reflecting the impact of
reduced IT investments in addition to growing competition in the market. Meanwhile,the environment surrounding the businessin this segment has been facing a significant
shift from a period of owning systems to aperiod of utilizing them, with an increasingly
prominent movement in the industry toward
cloud computing which is known as the nextgeneration business.
In this market environment, we will focus
on spurring latent demand in our solutions
business targeted at large companies bystrengthening our competitive advantage
with enhanced software functions, and reinforcing our marketing structures with collaboration between sales staff and systems
engineers. In addition, we will aim to expand
our Application Ser vice Provider (ASP)
services business by reinforcing allianceswith Group companies in Japan in order to
respond to the changes of the times.
To enhance the profitability of this business,
we will strictly manage revenue from our solutions business targeted at large companies,
enhance our project management systems,
cut costs by standardizing system software,and expand sales of standard software packages to small and medium-scale business establishments, so as to boost earnings capacity.
Overseas, we aim to strengthen our customer base and expand distribution channels inNorth America, leveraging the strengths ofAccu-Time Systems, Inc. which we acquiredin February 2010 in the U.S. In addition, we
will work on establishing a global supply

10

Overseas, we aim to expand business andestablish ourselves as the top manufacturerof parking systems in the North American
market, leveraging the strengths of Amano
McGann, Inc. to further boost sales by building closer relationships with customers.
With an establishment of Amano UK Ltd.
in England, we aim to capture demand for
replacement from existing customers andcultivate the new market in Europe by leveraging direct distribution networks. In addition,
we will strive to further expand our businessin Asia with the main focus on South Korea.
We also aim to secure the largest market
shares in each market, proactively expanding
our global operations.

2) Environment systems•Environment systems businessAs manufacturers’ capital expenditure remained sluggish in Japan, the environment
system business division continued to face achallenging business environment. This was
despite a prominent recovery in demandin the electric device segment for products
such as liquid crystals and semiconductors
and despite moves toward resuming projects
that had been frozen or postponed in thepast. On the other hand, there has been a
prominent shift in demand toward overseas
markets as capital expenditure increases witha recovery in demand for machine tools in
Asia, especially in the Chinese market.
Given these circumstances, we will make efforts to strengthen local production capabilities and distribution networks in China withthe aim of increasing demand in the Chinese
market by extending target segments fromJapanese companies operating in China to
local Chinese enterprises. In addition, we will
strengthen our capability of developing new
products with less environmental impact,
launch new products to match the reduction in size and the diversification of machine
tools, and enhance our lineup of dust-explosion-proof technologies to raise safety standards. We also aim to spur latent demandby expanding our maintenance business andfurther strengthen profit control for eachsite in order to boost profitability.
In overseas markets, we will expand businessin Asia by building stronger ties with overseas Group companies in China, Thailand,and other Asian countries.

3) Human resource development
Recognizing that people are the most important management resource for the operation of our business, we have positioned
human resource development as a priority
issue and will focus on developing employees who have no fear of change and arewilling to meet the challenges.

Time Information Systems Time Management Equipments
From “Owning” to “Using” - The newcloud computing compatible “CYBERXEED T&A / HR / Payroll”
The much talked about “cloud computing
service”, is a computer processing service
which enables the user to use of a variety
of applications through the internet. Usinga web browser, various application software can be accessed and used without
the possession of dedicated software and/or networks. Amano provides an easy-touse cloud computing service, the “CYBER
XEED”, for T&A and payroll processing.
When considering outsourcing operations,
3 key “CS’s” become the decisive factors;(A) Customers Satisfaction, (B) Consulting
Solution, and (C) Continuous Service. By
centralizing the control of “T&A, HR, Payroll” application databases, “CYBER XEED”
can provide optimal utilization and highquality service meeting the needs for the
cloud computing era.
A 3-day exposition, “The 1st Cloud Computing EXPO” was held from May 12th,
2010 at the Tokyo Big Site. It was theindustry’s first and much awaited for, exposition dedicated exclusively for cloud computing. One of Amano’s group companies,
Amano Business Solutions Ltd., exhibitedthe “CYBER XEED” and received highevaluations from many customers.

CYBER XEEDTime Information Systems Time Management Equipments
IC card type Time Recorder Package “TimeP@CK-iC” - A new “Eco”
friendly T&A
The PC-interface time recorder package“TimeP@CK” has been popular as an effective tool to improve the efficiency of
T&A operations by enabling the user to
upload, edit and tabulate T&A data on personal computers. In addition, it also offers
compatibility to most payroll calculation
software available on the market, allowing
easy payroll processing as well. Now, a new
product TimeP@CK-iC “ has been added

to the TimeP@CK series, which uses IC
cards instead of time cards. While offering the same easy-to-use features from“TimeP@CK “, the IC cards used can also
be used as company ID’s. In addition, theIC cards come with the industry’s first carbon offset rights (CO2 reduction credit).
Each card will come with 2kg- CO2 rights.
The CO2 emission equivalent of the electric energy used to operate “TimeP@CKiC”, will be offset by Amano. This partial
offset by Amano will contribute to lowering the customers’ total CO2 emissions. A
design that would further encourage environmental consciousness, was adopted forthe IC cards. Carbon offsetting products
and services similar to this is increasing
recently.

Comes with carbon offset rights“TimeP@CK-iC”

Parking Systems
The keyword is “Vehicle Identification& Control” - Rising demands in the
exclusive gate system market
Currently, the installation of gate systems
with vehicle identification and control functions is progressing not only for generalpublic parking but also parking for “specificvehicles”, and for this reason, the market
demand for exclusive gate systems is rising. For example, at university campuses,
the system is used for controlling vehiclesof “employees and students”. At hospitalparking lots, in order to secure parking
spaces for doctors and hospital employees
separately from general visitors, it is used
to control “specific registered vehicles”. At
station fronts, for “registered taxi control”,
and at highway tollgates, exclusive gate
systems are used for securing “employee
safety”. In addition, at business sites, thesystem is used for checking “operational
vehicles” at the entrance gates, and security control at research facilities. As
described, the purpose for exclusive gate

Gate system
for “specificvehicles”

11

systems is to achieve “labor efficiency” and“rationalization”, but its application is not
limited to restricting / controlling vehicles,
the demand is also spreading to safety andsecurity.
“The ticketing / exit pay system forflap-lock parking”-Synchronizing theflap-lock exit pay stations with the ticketing stations
February 2010, the new ticketing / exit faresystem for flap-lock parking, which synchronizes the flap-lock exit pay station with theticketing station, was installed at a city hall in
Kanagawa prefecture.
In order to effectively use small sites for parking, the gateless Flap-lock parking systems arecommonly installed for its simplicity. Flap-lockparking is a system whereby a flap, locatedon the ground, rises automatically after thevehicle stops at a designated position, whichlocks the vehicle. When exiting, entering theparking space number and paying the fareat the exit pay station will release the flaplock. Parking systems at many city halls andother public facilities utilize ticketing systems
for their dedicated parking lots, whereby,
the user presents the ticket at the office orbooth of intention and receives a parking
discount voucher. However, due to being
ticket less, the conventional flap-lock systems
did not allow such discount services. The
new ticketing / exit fare system for flap-lockparking, now allows system combination
with ticketing systems and the user can now
benefit from such discount services. In addition, the parking space numbers are now
recorded on the tickets, which will eliminate
fare errors at the exit pay stations.

Flap-lock exit pay
station FT-4800

Flap-lock ticketing
station GT-2750

Environmental Systems
Environmental systems, answering to
the rising demand for standard dust
collecting equipment in Asia
Up to now, Amano has expanded its
markets by establishing subsidiaries in the
Asian region (Malaysia, Singapore, Indonesia, Thailand, Korea, and China) to capture

Business Activities

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

system and reducing development costs by
expanding our hardware lineup. As a meansof expanding our business, we will also extend sales channels for software productsof Horosmart, S.A. (France) across Europe
and reinforce our organizational structures
toward globalization.

1) Time information systems•Parking systems business•Information systems business

The parking systems business continues tosee moderate recovery in demand both for
new and renewal projects in Japan. Amid therecovery in car sales supported by economic
measures including subsidies for those whoare purchasing new cars to replace their oldones, parking lot occupancy rates improvedin line with increased car usage and this resulted in the resumption of renewal projects
which had been postponed. Another factor
behind the recovery is advancement in “Scrap
and Rebuild” plans of unprofitable parking
lots by parking management companies. In
the operational environment surrounding
the parking business, the number of new
initiatives reflecting the motorized society
has been increasing. These include measuresagainst greenhouse gas emissions, efforts tobuild park-and-ride parking spaces which
aim to ease traffic congestion, introductionof car sharing services, and an increase in the
charging stations for electric vehicles. As aresult of the above, parking space management that focuses on the needs of parking
lot users has become increasingly important.
In this environment we will focus on making
proposals from the customer’s perspectivewith an emphasis on areas such as higher
profitability and efficiency of parking space
management. We will steadily meet theneeds of existing customers by offering highvalue-added products with network capabilities and in-built IT functions and forging
ahead with the holistic solutions business,
including maintenance and parking lot management services in close collaboration withGroup companies.
In the market for bicycle parks that hasarisen as a result of the problem of abandoned bicycles, we will seek to revitalize andexpand the market by proactively making
proposals on ecology-oriented initiatives
including rental cycle and community cycle
systems with the aim of reducing CO2 emissions. In the market for exclusive gate systems controlling entry and exit to and fromsites such as factories, we aim to expand the
new market with the emphasis on safety
and security in addition to making proposals
on labor-savings and rationalization.
In order to boost profitability, we will makeefforts including standardization of specialorder products, strengthening of profit control for each site and self-manufacturing ofpurchased products, among others.

Issues to Be Addressed

Amid continuing efforts by the labor authorities to more strictly monitor unpaid overtimeand long working hours (overwork) in orderto eradicate these practices as well as an increasing need to deal with risks surrounding
employment, such as industrial court cases
resulting from deteriorating employment
conditions, there is strong potential demand
among companies to establish or rebuild T&A
systems. The aim is to create a companywide labor time management system tooptimize business operations by reducing
working hours, improving work efficiency andcutting costs, etc. In addition, we will aim tostrengthen measures for compliance toward
appropriately managing working hours. However, market conditions remain tough due
to sluggish demand reflecting the impact of
reduced IT investments in addition to growing competition in the market. Meanwhile,the environment surrounding the businessin this segment has been facing a significant
shift from a period of owning systems to aperiod of utilizing them, with an increasingly
prominent movement in the industry toward
cloud computing which is known as the nextgeneration business.
In this market environment, we will focus
on spurring latent demand in our solutions
business targeted at large companies bystrengthening our competitive advantage
with enhanced software functions, and reinforcing our marketing structures with collaboration between sales staff and systems
engineers. In addition, we will aim to expand
our Application Ser vice Provider (ASP)
services business by reinforcing allianceswith Group companies in Japan in order to
respond to the changes of the times.
To enhance the profitability of this business,
we will strictly manage revenue from our solutions business targeted at large companies,
enhance our project management systems,
cut costs by standardizing system software,and expand sales of standard software packages to small and medium-scale business establishments, so as to boost earnings capacity.
Overseas, we aim to strengthen our customer base and expand distribution channels inNorth America, leveraging the strengths ofAccu-Time Systems, Inc. which we acquiredin February 2010 in the U.S. In addition, we
will work on establishing a global supply

10

Overseas, we aim to expand business andestablish ourselves as the top manufacturerof parking systems in the North American
market, leveraging the strengths of Amano
McGann, Inc. to further boost sales by building closer relationships with customers.
With an establishment of Amano UK Ltd.
in England, we aim to capture demand for
replacement from existing customers andcultivate the new market in Europe by leveraging direct distribution networks. In addition,
we will strive to further expand our businessin Asia with the main focus on South Korea.
We also aim to secure the largest market
shares in each market, proactively expanding
our global operations.

2) Environment systems•Environment systems businessAs manufacturers’ capital expenditure remained sluggish in Japan, the environment
system business division continued to face achallenging business environment. This was
despite a prominent recovery in demandin the electric device segment for products
such as liquid crystals and semiconductors
and despite moves toward resuming projects
that had been frozen or postponed in thepast. On the other hand, there has been a
prominent shift in demand toward overseas
markets as capital expenditure increases witha recovery in demand for machine tools in
Asia, especially in the Chinese market.
Given these circumstances, we will make efforts to strengthen local production capabilities and distribution networks in China withthe aim of increasing demand in the Chinese
market by extending target segments fromJapanese companies operating in China to
local Chinese enterprises. In addition, we will
strengthen our capability of developing new
products with less environmental impact,
launch new products to match the reduction in size and the diversification of machine
tools, and enhance our lineup of dust-explosion-proof technologies to raise safety standards. We also aim to spur latent demandby expanding our maintenance business andfurther strengthen profit control for eachsite in order to boost profitability.
In overseas markets, we will expand businessin Asia by building stronger ties with overseas Group companies in China, Thailand,and other Asian countries.

3) Human resource development
Recognizing that people are the most important management resource for the operation of our business, we have positioned
human resource development as a priority
issue and will focus on developing employees who have no fear of change and arewilling to meet the challenges.

Time Information Systems Time Management Equipments
From “Owning” to “Using” - The newcloud computing compatible “CYBERXEED T&A / HR / Payroll”
The much talked about “cloud computing
service”, is a computer processing service
which enables the user to use of a variety
of applications through the internet. Usinga web browser, various application software can be accessed and used without
the possession of dedicated software and/or networks. Amano provides an easy-touse cloud computing service, the “CYBER
XEED”, for T&A and payroll processing.
When considering outsourcing operations,
3 key “CS’s” become the decisive factors;(A) Customers Satisfaction, (B) Consulting
Solution, and (C) Continuous Service. By
centralizing the control of “T&A, HR, Payroll” application databases, “CYBER XEED”
can provide optimal utilization and highquality service meeting the needs for the
cloud computing era.
A 3-day exposition, “The 1st Cloud Computing EXPO” was held from May 12th,
2010 at the Tokyo Big Site. It was theindustry’s first and much awaited for, exposition dedicated exclusively for cloud computing. One of Amano’s group companies,
Amano Business Solutions Ltd., exhibitedthe “CYBER XEED” and received highevaluations from many customers.

CYBER XEEDTime Information Systems Time Management Equipments
IC card type Time Recorder Package “TimeP@CK-iC” - A new “Eco”
friendly T&A
The PC-interface time recorder package“TimeP@CK” has been popular as an effective tool to improve the efficiency of
T&A operations by enabling the user to
upload, edit and tabulate T&A data on personal computers. In addition, it also offers
compatibility to most payroll calculation
software available on the market, allowing
easy payroll processing as well. Now, a new
product TimeP@CK-iC “ has been added

to the TimeP@CK series, which uses IC
cards instead of time cards. While offering the same easy-to-use features from“TimeP@CK “, the IC cards used can also
be used as company ID’s. In addition, theIC cards come with the industry’s first carbon offset rights (CO2 reduction credit).
Each card will come with 2kg- CO2 rights.
The CO2 emission equivalent of the electric energy used to operate “TimeP@CKiC”, will be offset by Amano. This partial
offset by Amano will contribute to lowering the customers’ total CO2 emissions. A
design that would further encourage environmental consciousness, was adopted forthe IC cards. Carbon offsetting products
and services similar to this is increasing
recently.

Comes with carbon offset rights“TimeP@CK-iC”

Parking Systems
The keyword is “Vehicle Identification& Control” - Rising demands in the
exclusive gate system market
Currently, the installation of gate systems
with vehicle identification and control functions is progressing not only for generalpublic parking but also parking for “specificvehicles”, and for this reason, the market
demand for exclusive gate systems is rising. For example, at university campuses,
the system is used for controlling vehiclesof “employees and students”. At hospitalparking lots, in order to secure parking
spaces for doctors and hospital employees
separately from general visitors, it is used
to control “specific registered vehicles”. At
station fronts, for “registered taxi control”,
and at highway tollgates, exclusive gate
systems are used for securing “employee
safety”. In addition, at business sites, thesystem is used for checking “operational
vehicles” at the entrance gates, and security control at research facilities. As
described, the purpose for exclusive gate

Gate system
for “specificvehicles”

11

systems is to achieve “labor efficiency” and“rationalization”, but its application is not
limited to restricting / controlling vehicles,
the demand is also spreading to safety andsecurity.
“The ticketing / exit pay system forflap-lock parking”-Synchronizing theflap-lock exit pay stations with the ticketing stations
February 2010, the new ticketing / exit faresystem for flap-lock parking, which synchronizes the flap-lock exit pay station with theticketing station, was installed at a city hall in
Kanagawa prefecture.
In order to effectively use small sites for parking, the gateless Flap-lock parking systems arecommonly installed for its simplicity. Flap-lockparking is a system whereby a flap, locatedon the ground, rises automatically after thevehicle stops at a designated position, whichlocks the vehicle. When exiting, entering theparking space number and paying the fareat the exit pay station will release the flaplock. Parking systems at many city halls andother public facilities utilize ticketing systems
for their dedicated parking lots, whereby,
the user presents the ticket at the office orbooth of intention and receives a parking
discount voucher. However, due to being
ticket less, the conventional flap-lock systems
did not allow such discount services. The
new ticketing / exit fare system for flap-lockparking, now allows system combination
with ticketing systems and the user can now
benefit from such discount services. In addition, the parking space numbers are now
recorded on the tickets, which will eliminate
fare errors at the exit pay stations.

Flap-lock exit pay
station FT-4800

Flap-lock ticketing
station GT-2750

Environmental Systems
Environmental systems, answering to
the rising demand for standard dust
collecting equipment in Asia
Up to now, Amano has expanded its
markets by establishing subsidiaries in the
Asian region (Malaysia, Singapore, Indonesia, Thailand, Korea, and China) to capture

the demands for environmental products.
Recently, both Japanese and local companies have increased production capabilities
in China raising demand for machine tools
and along with it, the demand for standard
dust collecting equipment at factory sites
are also on the rise. In order to capture
this demand in China, Amano has; (A)Established a specialized organization toprovide information, develop new customers and sales channels, (B) enhanced thesales, engineering, and service structure of
the Chinese subsidiary.
The compact pneumatic conveying system for powder and granular material,
the “FPV series” and the testing plant
aimed at the food and pharmaceuticalindustry
The transportation of raw material, such asbeans and flour, for food and pharmaceutical industry requires more hygienic andtechnical considerations compared to thatof general powder and granular material.
Amano’s compact pneumatic conveying
system for powder and granular material,
the “FPV series”, is capable of hygienictransportation of material without reten-

Cleaning Systems
Expanding the market with the automatic floor scrubber with sweeping
function
From the portable light weight & compact
models to the ride-on models, suitable forlarge areas such as large commercial facilities, factories and warehouses, airports,
stations, and other public facilities, Amanoprovides a wide range of automatic floor
scrubbers known as “Clean Burny”, whichhave received high evaluation.
The conventional method of cleaning commercial facilities such as shopping malls,
major supermarkets, large DIY centers(with floors using plastic tiles, ceramic andstone materials), and hard floors in factories (painted concrete), required two steps.
Grit and dust must be removed prior tocleaning.
The new “SE-430eSW” launched February 2010, comes with a specially designed
sweeping brush, which will enable theuser to sweep and clean simultaneously.
By reducing operational man-hour, it isanticipated that the demand for this newautomatic scrubber to rise as an effective
tool for reducing cleaning costs.

Automatic floor scrubber with sweeping
function SE-430eSW
The compact pneumatic conveying system for
powder and granular material, the “FPV series”

tion or accumulation using air. The main
body can be easily disassembled without
tools and it is water washable.
Tests using the latest “testing plant forpneumatic conveying systems for powder
and granular material” at our Hosoe facility, is showing a marked increase not only
for general material but also the sanitaryline designed for testing transportationof contamination susceptible food andpharmaceutical material. Amano is actively
expanding into the food and pharmaceutical industry, using the know-how accumulated through the many installations ofenvironmental products to the automobile,electric and machine, chemical industries.

The test line
for sanitarytransportation

Domestic Group Companies
With abundant knowledge growth continues “Amano parking administration andmanagement services” - Amano Management Service Corporation
Amano Management Service Corporation(AMS hereunder) is a domestic memberof the Amano group. It operates by receiving consignment contracts for “parking
administration” and “parking management”
and ever since the service star ted, thenumbers of contracts have been increasing
steadily.
For parking management, the keywords
are “operational efficiency” and “improved
profitability”. Through stronger alliancewith AMS, Amano is providing total solutions for parking management (“parking
administration ser vice ” and “parking
management service”). Depending on the12customer’s operational and administrative
situation, Amano will implement optimal
service and give appropriate advice, suchas cost reduction measures, in accordancewith their needs.
In addition, by strengthening effor ts toengage PFI projects and “designated administrator system”, which are measures
implemented by the local municipalities
to promote the consignment of municipal
parking to theprivate sector,
Amano anticipates continued growth inser vice conAMS Customer Support Center
tracts.

Overseas Group Companies
Aquired Accu-Time Systems, Inc., - Expanding sales channels of Time Information business in the U.S.A.
February 2010, Amano acquired AccuTime Systems, Inc. (ATS hereunder), a
company based and located in Connecticut U.S.A. ATS is a leading company inmanufacturing and sales of terminals fortime information and T&A. in the U.S. It
also operates in Europe through its sales
offices. ATS is renowned for having a highquality customer base and is highly evaluated as a company that provides innovativeand precise solutions With this acquisition,
Amano has inherited the diversified rangeof time information and T&A products together with its quality customer base andby combining it with Amano’s sales channels, it is anticipated that the synergy effectwill accelerate the time information business, thereby expanding Amano’s market
presence in the U.S.

Accu-Time Systems, Inc. website
http://www.accu-time.com

Amano USA Holdings, Inc.
Amano USA Holdings, Inc. and all of its subsidiaries arefocused on pursuing its goal “to achieve sustainable
and profitable growth and be the very best in our chosen markets”. This goal requires constant innovationin the design anddevelopment of our
products, and theprovision of superior
service to our customers.

Amano McGann, Inc. – Parking
Engineering in Motion
The year 2009 was marked by the integration of the
ACI parking engineering into AMI to allow for effective focus of resources for current business operations(maintaining products, enhancements and customs)
and R&D (building for the future) in support of sustainable growth and market leadership.

Product Development
Development of the AMG7800 Pay
Station with its new aesthetic designand smaller footprint was completed
and generated much interest andexcitement in the industry.
Also completed was the development of an imaging scanner Hotpocket option for lane devices providing end-user’s with the ability to create their own applications thatinterface with iParc Professional
system.
2009 marked the start of the development of new advanced communications hardware supporting
VoIP and compressed video with
the intent to reduce parking installation time and cost.

Success Stories
Amano McGann continued its success in
adding notable projects that include; Sea
World Renaissance
Orlando, Florida; CNN Center, Georgia; Duke University, North Carolina, Chicago Greenway Project andmultiple projects from the prestigious Irvine Company
Office Properties portfolio-Irvine, California.
AMI made 2009 a strong
year for growth in the
Airport market. Major
installations in that market
included Bangor Airport,
Maine; Colorado Springs, Colorado, Kahului Airport(Maui), and T.F. Green Airport-Providence, Rhode Island, which included the first implementation of license
plate recognition (LPR).
Increased success was
experienced with specialty
products focused on thehospitality industry such as
Valet and Hotel PMS integration.
The company continued to strengthen its position withprofessional sports venues and convention centerswith the enhanced Special Event System. Key wins

included Citi Field (New York Mets), Dallas Performing
Arts Center, and City of St. Paul.

Best In Show
Through its participation
at the major Industry
tradeshows, AMI received the prestigious“Best in Show” award
at both the International
and the National Parking
Shows. The theme wascoordinated around a
yearlong marketing campaign designed around
Amano McGann commissioned artwork by local Artist Michael Birawer.

ACI delivered the first fully
integrated solutions with
the installation of Time
Guardian PRO, Nexus 220
and Amano McGann Parking equipment to GoglanianBakeries of California.

Successes In Latin America
ACI successfully installed solutions in Latin
America including theWorld Trade Centerin San Salvador, El
Salvador. A new dealer
agreement with Sharfstein has generated multiple orders with Universities and shopping malls across Chile.

Amano Cincinnati, Inc. – Time & Security Division

Amano Pioneer Eclipse – Cleaning Technologies
New Leadership

New Product LaunchThomas Benton was appointed President & CEO of
Amano Pioneer Eclipse, Corp. With over 20 years in
the cleaning industry, Tom is very focused on building
growth and profitability through new products, newchannel to market and geographic expansion.

The FPT-40 Fingerprint terminal,
designed to eliminate “buddy
punching” through fingerprint
recognition, was introduced toretail (Sam’s Club and Costco).
Costco agreed to sell TCX-45 intheir retail stores across Canada.
ACI launched the TS-3000i, aturn-key web based clock thatprovides users with automatictime synchronization for validated time.
Amano introduced Nexus 220, the next generation inaccess control by bridging the gap between small andmedium access applications.

Product Development
2009 marked the start of several
product development projects
including Nexus Lite, an entry
level access control systemproviding advanced features at acompetitive
price.
Also in development was Time
Guardian Plus, the next generation time & attendance softwarewith access control integration.

Success Stories
Fastenal, an international reseller of industrial andconstruction supplies a fortune 1000 company and amember of the S&P 500 now carries the Amano lineof time products via their 2,300 store locations acrossNorth America and through their online store.
UBS Financial Services purchased the new TS-3000i
Time Sync Clock for their locations across North
America.
ACI installed the first integrated
solution with AmanoNet andiParc at Esperante Corporate
Center in West Palm, Florida.
Other major Security Systems
installations include: Jay County
Hospital with the implementation of a 29-door Nexus
220 system and Medic 911 in Charlotte, with theimplementation of a video management system using
Amano’s new Digital Video Management NVRs andsoftware.

13

Continuous Development
APEC continued the advanced development and promotion of the concrete polishing brand, PowerStar, tocapture growth opportunities in the concrete surface
maintenance market.
APEC continuously pursue additional third party green
certification both domestically and internationally.

New Product Launch
APEC launched the PowerGloss concrete polishing pads
which are part of the PowerStar Concrete Maintenance
Program. The new pads allow
traditional floor care professionals to use existing scrubbers and burnishers to maintainand restore concrete floor
surfaces.
APEC introduced the PowerPolish and Power PolishHT
curing pads specifically designed
for burnishing and curing top
coatings on concrete floor surfaces.

Major Successes
APEC successfully established EnviroStar Green HS25
finish program with Harris Teeter, a food market chain
operating over 200 retail stores nationwide.
APEC expanded Dade Paper relationship to two major markets in Florida and Alabama.
APEC also secured the propane business with Food
City food stores, one of the largest independent grocery chains in Kentucky, Virginia, and Tennessee with93 stores.

Amano Europe Holdings, N.V.
The way Amano handled the economical situationin Europe was by being extremely cautious in its day
to day business combined with a good level of agility
when it came to envisioning and embracing new opportunities as they occurred in 2009 and early 2010.

the demands for environmental products.
Recently, both Japanese and local companies have increased production capabilities
in China raising demand for machine tools
and along with it, the demand for standard
dust collecting equipment at factory sites
are also on the rise. In order to capture
this demand in China, Amano has; (A)Established a specialized organization toprovide information, develop new customers and sales channels, (B) enhanced thesales, engineering, and service structure of
the Chinese subsidiary.
The compact pneumatic conveying system for powder and granular material,
the “FPV series” and the testing plant
aimed at the food and pharmaceuticalindustry
The transportation of raw material, such asbeans and flour, for food and pharmaceutical industry requires more hygienic andtechnical considerations compared to thatof general powder and granular material.
Amano’s compact pneumatic conveying
system for powder and granular material,
the “FPV series”, is capable of hygienictransportation of material without reten-

Cleaning Systems
Expanding the market with the automatic floor scrubber with sweeping
function
From the portable light weight & compact
models to the ride-on models, suitable forlarge areas such as large commercial facilities, factories and warehouses, airports,
stations, and other public facilities, Amanoprovides a wide range of automatic floor
scrubbers known as “Clean Burny”, whichhave received high evaluation.
The conventional method of cleaning commercial facilities such as shopping malls,
major supermarkets, large DIY centers(with floors using plastic tiles, ceramic andstone materials), and hard floors in factories (painted concrete), required two steps.
Grit and dust must be removed prior tocleaning.
The new “SE-430eSW” launched February 2010, comes with a specially designed
sweeping brush, which will enable theuser to sweep and clean simultaneously.
By reducing operational man-hour, it isanticipated that the demand for this newautomatic scrubber to rise as an effective
tool for reducing cleaning costs.

Automatic floor scrubber with sweeping
function SE-430eSW
The compact pneumatic conveying system for
powder and granular material, the “FPV series”

tion or accumulation using air. The main
body can be easily disassembled without
tools and it is water washable.
Tests using the latest “testing plant forpneumatic conveying systems for powder
and granular material” at our Hosoe facility, is showing a marked increase not only
for general material but also the sanitaryline designed for testing transportationof contamination susceptible food andpharmaceutical material. Amano is actively
expanding into the food and pharmaceutical industry, using the know-how accumulated through the many installations ofenvironmental products to the automobile,electric and machine, chemical industries.

The test line
for sanitarytransportation

Domestic Group Companies
With abundant knowledge growth continues “Amano parking administration andmanagement services” - Amano Management Service Corporation
Amano Management Service Corporation(AMS hereunder) is a domestic memberof the Amano group. It operates by receiving consignment contracts for “parking
administration” and “parking management”
and ever since the service star ted, thenumbers of contracts have been increasing
steadily.
For parking management, the keywords
are “operational efficiency” and “improved
profitability”. Through stronger alliancewith AMS, Amano is providing total solutions for parking management (“parking
administration ser vice ” and “parking
management service”). Depending on the12customer’s operational and administrative
situation, Amano will implement optimal
service and give appropriate advice, suchas cost reduction measures, in accordancewith their needs.
In addition, by strengthening effor ts toengage PFI projects and “designated administrator system”, which are measures
implemented by the local municipalities
to promote the consignment of municipal
parking to theprivate sector,
Amano anticipates continued growth inser vice conAMS Customer Support Center
tracts.

Overseas Group Companies
Aquired Accu-Time Systems, Inc., - Expanding sales channels of Time Information business in the U.S.A.
February 2010, Amano acquired AccuTime Systems, Inc. (ATS hereunder), a
company based and located in Connecticut U.S.A. ATS is a leading company inmanufacturing and sales of terminals fortime information and T&A. in the U.S. It
also operates in Europe through its sales
offices. ATS is renowned for having a highquality customer base and is highly evaluated as a company that provides innovativeand precise solutions With this acquisition,
Amano has inherited the diversified rangeof time information and T&A products together with its quality customer base andby combining it with Amano’s sales channels, it is anticipated that the synergy effectwill accelerate the time information business, thereby expanding Amano’s market
presence in the U.S.

Accu-Time Systems, Inc. website
http://www.accu-time.com

Amano USA Holdings, Inc.
Amano USA Holdings, Inc. and all of its subsidiaries arefocused on pursuing its goal “to achieve sustainable
and profitable growth and be the very best in our chosen markets”. This goal requires constant innovationin the design anddevelopment of our
products, and theprovision of superior
service to our customers.

Amano McGann, Inc. – Parking
Engineering in Motion
The year 2009 was marked by the integration of the
ACI parking engineering into AMI to allow for effective focus of resources for current business operations(maintaining products, enhancements and customs)
and R&D (building for the future) in support of sustainable growth and market leadership.

Product Development
Development of the AMG7800 Pay
Station with its new aesthetic designand smaller footprint was completed
and generated much interest andexcitement in the industry.
Also completed was the development of an imaging scanner Hotpocket option for lane devices providing end-user’s with the ability to create their own applications thatinterface with iParc Professional
system.
2009 marked the start of the development of new advanced communications hardware supporting
VoIP and compressed video with
the intent to reduce parking installation time and cost.

Success Stories
Amano McGann continued its success in
adding notable projects that include; Sea
World Renaissance
Orlando, Florida; CNN Center, Georgia; Duke University, North Carolina, Chicago Greenway Project andmultiple projects from the prestigious Irvine Company
Office Properties portfolio-Irvine, California.
AMI made 2009 a strong
year for growth in the
Airport market. Major
installations in that market
included Bangor Airport,
Maine; Colorado Springs, Colorado, Kahului Airport(Maui), and T.F. Green Airport-Providence, Rhode Island, which included the first implementation of license
plate recognition (LPR).
Increased success was
experienced with specialty
products focused on thehospitality industry such as
Valet and Hotel PMS integration.
The company continued to strengthen its position withprofessional sports venues and convention centerswith the enhanced Special Event System. Key wins

included Citi Field (New York Mets), Dallas Performing
Arts Center, and City of St. Paul.

Best In Show
Through its participation
at the major Industry
tradeshows, AMI received the prestigious“Best in Show” award
at both the International
and the National Parking
Shows. The theme wascoordinated around a
yearlong marketing campaign designed around
Amano McGann commissioned artwork by local Artist Michael Birawer.

ACI delivered the first fully
integrated solutions with
the installation of Time
Guardian PRO, Nexus 220
and Amano McGann Parking equipment to GoglanianBakeries of California.

Successes In Latin America
ACI successfully installed solutions in Latin
America including theWorld Trade Centerin San Salvador, El
Salvador. A new dealer
agreement with Sharfstein has generated multiple orders with Universities and shopping malls across Chile.

Amano Cincinnati, Inc. – Time & Security Division

Amano Pioneer Eclipse – Cleaning Technologies
New Leadership

New Product LaunchThomas Benton was appointed President & CEO of
Amano Pioneer Eclipse, Corp. With over 20 years in
the cleaning industry, Tom is very focused on building
growth and profitability through new products, newchannel to market and geographic expansion.

The FPT-40 Fingerprint terminal,
designed to eliminate “buddy
punching” through fingerprint
recognition, was introduced toretail (Sam’s Club and Costco).
Costco agreed to sell TCX-45 intheir retail stores across Canada.
ACI launched the TS-3000i, aturn-key web based clock thatprovides users with automatictime synchronization for validated time.
Amano introduced Nexus 220, the next generation inaccess control by bridging the gap between small andmedium access applications.

Product Development
2009 marked the start of several
product development projects
including Nexus Lite, an entry
level access control systemproviding advanced features at acompetitive
price.
Also in development was Time
Guardian Plus, the next generation time & attendance softwarewith access control integration.

Success Stories
Fastenal, an international reseller of industrial andconstruction supplies a fortune 1000 company and amember of the S&P 500 now carries the Amano lineof time products via their 2,300 store locations acrossNorth America and through their online store.
UBS Financial Services purchased the new TS-3000i
Time Sync Clock for their locations across North
America.
ACI installed the first integrated
solution with AmanoNet andiParc at Esperante Corporate
Center in West Palm, Florida.
Other major Security Systems
installations include: Jay County
Hospital with the implementation of a 29-door Nexus
220 system and Medic 911 in Charlotte, with theimplementation of a video management system using
Amano’s new Digital Video Management NVRs andsoftware.

13

Continuous Development
APEC continued the advanced development and promotion of the concrete polishing brand, PowerStar, tocapture growth opportunities in the concrete surface
maintenance market.
APEC continuously pursue additional third party green
certification both domestically and internationally.

New Product Launch
APEC launched the PowerGloss concrete polishing pads
which are part of the PowerStar Concrete Maintenance
Program. The new pads allow
traditional floor care professionals to use existing scrubbers and burnishers to maintainand restore concrete floor
surfaces.
APEC introduced the PowerPolish and Power PolishHT
curing pads specifically designed
for burnishing and curing top
coatings on concrete floor surfaces.

Major Successes
APEC successfully established EnviroStar Green HS25
finish program with Harris Teeter, a food market chain
operating over 200 retail stores nationwide.
APEC expanded Dade Paper relationship to two major markets in Florida and Alabama.
APEC also secured the propane business with Food
City food stores, one of the largest independent grocery chains in Kentucky, Virginia, and Tennessee with93 stores.

Amano Europe Holdings, N.V.
The way Amano handled the economical situationin Europe was by being extremely cautious in its day
to day business combined with a good level of agility
when it came to envisioning and embracing new opportunities as they occurred in 2009 and early 2010.

AMANO Corporation and Subsidiaries

Financial Highlights
For the years ended March 31, 2010 and 2009.
Central in the policy has been the strong believe in ourability to serve the existing customers as a stable baseto create future growth. A restructuring plan has been
executed in Spain, an investment plan is put into place
for the new parking product range, X-Parc, Amano
started direct sales activities in the UK, Amano bought
two companies in France to enforce its position in thecard printing business and we noted steady investments and growthin the Work ForceManagement sector. We are readyto cope with thechallenges of thenext years.

WFM
The growing percentage of big and international accounts in the customer portfolio of the workforce
management market is an indication that Amano ison the right track in its ambition to become a major
European player. Internationalization combined witha strong focus on support, a profound knowledge of
local customer needs and the ability to offer integrated
solutions between facilities [parking, access and security] and people [workforce management and user
identity management]
solutions is the cornerstone of our strategy andthe key of the success.
New partnerships will
enforce Amano’s position in Europe.

PARKING
A similar tendency and policy is applied in the parking
business. X-Parc is positioned in the market as a solution rather than being just a range of products. It is ouranswer to fast evolving market needs both in the areaof mobility and finance. Indeed, as parking solution
provider we will offer fast and seamless integrations
with governmental and private initiatives that seek
solutions for modern urban mobility challenges, easeof use and the tendency to integrate a multitude ofpayment methods.

video surveillance systems.
2. Nutrixo wanted a multi-site solution.
3. Nutrixo was confident in our ability to roll our
major projects, based on past experiences in theworkforce management.
4. Nutrixo was looking for solutions that can be adjusted easily to local needs of each site.
We have demonstrated our ability to manage local
projects while respecting the specifications of thenational project team. The customer specifically appreciated the daily performance of the hotline when
they encountered problems of deployment and exploitation. As a result of the introduction of the access
control system Nutrixo could reduce in significant way
thefts, vandalism and burglary. They also use the realtime counting functions which enable them at any time
to know who is on the premises and they saved significantly in, previously outsourced, guarding services. The
system will be paid back in less than one year.

AKC developed the first Parking
Location Guidance System in Korea

SUCCESS STORYThe European leader of Milling and Bakery, including
the “Grands Moulins de Paris”, the group Nutrixo
includes 60 production sites in Europe and 5,000
employees. In order to strengthen the security of its
sites Nutrixo quickly focused on our access solutions“Protecsys” for the following reasons:
1. Nutrixo wanted a single supplier and integrated
solution for time management, control access andYen in millions and U.S.dollars in thousands, except per share amounts

Basement Garage (3rd to
5th basement floor)
Accommodation
1800 cars
Parking lot Management Amano Korea Corporation
Number of staff
82
Entrance and Exit
4 entrances and 4 exits
Issues a ticket at the enEntrance and Payment trance, 4 Automatic Pay
MethodSystem and Attended Exit
Pay System•License plate recognitionand parking lot guidancesystem with Kiosk terminals.
•Parking lot management
system by ultrasonic senManagement Systemsor. (50 units)•Exit vehicle confirmation
system.
•Store discount system by
AR150 etc.

- See Note 5 to the Consolidated Financial Statements.

Parking Lot Form

Parking Location Guidance System
Enhance convenience and service for Customers
The Information kiosk terminal shows a route fromyour current location to where you parked a car. This
service improves the convenience of customers andworking efficiency for parking operators at a largescaled parking lot such as shopping center, airport, andmajor station.
Through Parking Location Guidance System, once avehicle is parked at a space, an identification camera
installed in the parking lot recognizes a license plate.
The data is connected to parking location data, vehicle
ID number (license plate number), and vehicle image
and then stored in the host system automatically.
When a customer inputs 4-digit vehicle ID number at
the information kiosk terminal, it shows a route from apresent location to the parked vehicle.
System Configuration

ACCESS
Amano doesn’t occupy a significant percentage inthe European access control market nor is it active in
the indirect sales of its access control products. Focus
however is set to direct sales and to a tight integration
with Amano’s other competences in people management and parking control. Amano will continue to selland support access control solutions with this strategy
in mind. As an exampleof this we refer to theincluded success story
of Nutrixo group in
France.

Times Square Parking Lot Korea

14

2009

2010

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

¥78,586¥91,812$845,011

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

1,011

2,214

10,871

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

¥13.20¥28.14$0.142

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

26.00

30.00

0.280

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

¥100,687¥102,192$1,082,656

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

35,31232,456379,699

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

74,96875,395806,108

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

¥17,440¥19,848$187,527

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

4,316

5,361

46,409Parking systems ................................................

37,78638,968406,301

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

11,521

19,066

123,882

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

7,523

8,569

80,892For the years ended March 31:

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

At March 31:

Sales by product:-See Note 5 to the Consolidated Financial Statements.

Parking Location Guidance System
An image of a vehicle will be displayed when a customer enters 4-digit vehicle ID number from the “information kiosk terminal” (touch panel). The customer
confirms the vehicle image and presses the location
button and then the vehicle parked area and a routefrom a present location are to be displayed.
2 discount systems are available① Online discount system utilizing receipt bar-code
issued at department store or discount store② Store discount system using automatic encoder for
store validation “AR-150”(first overseas introduction)

Times Square, a large commercial complex that has
department store, hotel, supermarket, movie theatre,
wedding hall and restaurants opened in Seoul Korea.
Amano Korea Corporation, one of the group companies of AMANO Corporation, introduced the Parking
Location Guidance System to a parking lot of Times
Square for the first time in Korea.

2010

Note: U.S.dollar amounts have been translated at the rate of ¥93 = US $1, the rate prevailing on March 31, 2010.

Parking Fee Discount System

Case Study
Times Square Parking Lot in Korea
Large Commercial Complex opened in
September 2009

Thousands of U.S.
dollars (Note 5)

Millions of Yen

Net Sales

Net Income(Millions of Yen)

(Millions of Yen)

1000007000

Net Income Per Share
(Yen)

80
70

90000

6000

80000

60
5000

70000

50
60000

4000
40

50000
3000

40000
30000

30

2000

20

20000
1000

10000
0

'06

'07

'08

'09

'10

0

10

'06

'07

15

'08

'09

'10

0

'06

'07

'08

'09

'10

AMANO Corporation and Subsidiaries

Financial Highlights
For the years ended March 31, 2010 and 2009.
Central in the policy has been the strong believe in ourability to serve the existing customers as a stable baseto create future growth. A restructuring plan has been
executed in Spain, an investment plan is put into place
for the new parking product range, X-Parc, Amano
started direct sales activities in the UK, Amano bought
two companies in France to enforce its position in thecard printing business and we noted steady investments and growthin the Work ForceManagement sector. We are readyto cope with thechallenges of thenext years.

WFM
The growing percentage of big and international accounts in the customer portfolio of the workforce
management market is an indication that Amano ison the right track in its ambition to become a major
European player. Internationalization combined witha strong focus on support, a profound knowledge of
local customer needs and the ability to offer integrated
solutions between facilities [parking, access and security] and people [workforce management and user
identity management]
solutions is the cornerstone of our strategy andthe key of the success.
New partnerships will
enforce Amano’s position in Europe.

PARKING
A similar tendency and policy is applied in the parking
business. X-Parc is positioned in the market as a solution rather than being just a range of products. It is ouranswer to fast evolving market needs both in the areaof mobility and finance. Indeed, as parking solution
provider we will offer fast and seamless integrations
with governmental and private initiatives that seek
solutions for modern urban mobility challenges, easeof use and the tendency to integrate a multitude ofpayment methods.

video surveillance systems.
2. Nutrixo wanted a multi-site solution.
3. Nutrixo was confident in our ability to roll our
major projects, based on past experiences in theworkforce management.
4. Nutrixo was looking for solutions that can be adjusted easily to local needs of each site.
We have demonstrated our ability to manage local
projects while respecting the specifications of thenational project team. The customer specifically appreciated the daily performance of the hotline when
they encountered problems of deployment and exploitation. As a result of the introduction of the access
control system Nutrixo could reduce in significant way
thefts, vandalism and burglary. They also use the realtime counting functions which enable them at any time
to know who is on the premises and they saved significantly in, previously outsourced, guarding services. The
system will be paid back in less than one year.

AKC developed the first Parking
Location Guidance System in Korea

SUCCESS STORYThe European leader of Milling and Bakery, including
the “Grands Moulins de Paris”, the group Nutrixo
includes 60 production sites in Europe and 5,000
employees. In order to strengthen the security of its
sites Nutrixo quickly focused on our access solutions“Protecsys” for the following reasons:
1. Nutrixo wanted a single supplier and integrated
solution for time management, control access andYen in millions and U.S.dollars in thousands, except per share amounts

Basement Garage (3rd to
5th basement floor)
Accommodation
1800 cars
Parking lot Management Amano Korea Corporation
Number of staff
82
Entrance and Exit
4 entrances and 4 exits
Issues a ticket at the enEntrance and Payment trance, 4 Automatic Pay
MethodSystem and Attended Exit
Pay System•License plate recognitionand parking lot guidancesystem with Kiosk terminals.
•Parking lot management
system by ultrasonic senManagement Systemsor. (50 units)•Exit vehicle confirmation
system.
•Store discount system by
AR150 etc.

- See Note 5 to the Consolidated Financial Statements.

Parking Lot Form

Parking Location Guidance System
Enhance convenience and service for Customers
The Information kiosk terminal shows a route fromyour current location to where you parked a car. This
service improves the convenience of customers andworking efficiency for parking operators at a largescaled parking lot such as shopping center, airport, andmajor station.
Through Parking Location Guidance System, once avehicle is parked at a space, an identification camera
installed in the parking lot recognizes a license plate.
The data is connected to parking location data, vehicle
ID number (license plate number), and vehicle image
and then stored in the host system automatically.
When a customer inputs 4-digit vehicle ID number at
the information kiosk terminal, it shows a route from apresent location to the parked vehicle.
System Configuration

ACCESS
Amano doesn’t occupy a significant percentage inthe European access control market nor is it active in
the indirect sales of its access control products. Focus
however is set to direct sales and to a tight integration
with Amano’s other competences in people management and parking control. Amano will continue to selland support access control solutions with this strategy
in mind. As an exampleof this we refer to theincluded success story
of Nutrixo group in
France.

Times Square Parking Lot Korea

14

2009

2010

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

¥78,586¥91,812$845,011

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

1,011

2,214

10,871

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

¥13.20¥28.14$0.142

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

26.00

30.00

0.280

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

¥100,687¥102,192$1,082,656

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

35,31232,456379,699

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

74,96875,395806,108

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

¥17,440¥19,848$187,527

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

4,316

5,361

46,409Parking systems ................................................

37,78638,968406,301

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

11,521

19,066

123,882

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

7,523

8,569

80,892For the years ended March 31:

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

At March 31:

Sales by product:-See Note 5 to the Consolidated Financial Statements.

Parking Location Guidance System
An image of a vehicle will be displayed when a customer enters 4-digit vehicle ID number from the “information kiosk terminal” (touch panel). The customer
confirms the vehicle image and presses the location
button and then the vehicle parked area and a routefrom a present location are to be displayed.
2 discount systems are available① Online discount system utilizing receipt bar-code
issued at department store or discount store② Store discount system using automatic encoder for
store validation “AR-150”(first overseas introduction)

Times Square, a large commercial complex that has
department store, hotel, supermarket, movie theatre,
wedding hall and restaurants opened in Seoul Korea.
Amano Korea Corporation, one of the group companies of AMANO Corporation, introduced the Parking
Location Guidance System to a parking lot of Times
Square for the first time in Korea.

2010

Note: U.S.dollar amounts have been translated at the rate of ¥93 = US $1, the rate prevailing on March 31, 2010.

Parking Fee Discount System

Case Study
Times Square Parking Lot in Korea
Large Commercial Complex opened in
September 2009

Thousands of U.S.
dollars (Note 5)

Millions of Yen

Net Sales

Net Income(Millions of Yen)

(Millions of Yen)

1000007000

Net Income Per Share
(Yen)

80
70

90000

6000

80000

60
5000

70000

50
60000

4000
40

50000
3000

40000
30000

30

2000

20

20000
1000

10000
0

'06

'07

'08

'09

'10

0

10

'06

'07

15

'08

'09

'10

0

'06

'07

'08

'09

'10

AMANO Corporation and Subsidiaries

Consolidated Balance Sheets
As at March 31, 2010 and 2009.

Millions of Yen

ASSETS2010

Current assets:
Cash and bank deposits .....................................
Marketable securities .........................................
Notes and accounts receivable:
Trade.............................................................
Less allowance for doubtful accounts ..............

2009

Thousands of U.S.
dollars (Note 5)

2010¥23,676
1,227¥18,720
1,192$254,581
13,194

21,134(214)
20,920
6,016
1,106
1,790
54,73523,651(199)
23,452
6,485
1,313
1,478
52,640227,247(2,301)
224,946
64,688
11,892
19,247588,548

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

27,803
19,643
1,711
49,157(33,445)
15,712
7,161
83
22,95626,187
19,156810
46,153(31,720)
14,433
7,156
1,258
22,847

298,957
211,215
18,398528,570(359,624)
168,946
77,000893
246,839

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

6,777
4,174
279
672
11,902

7,402
4,357
1,145
632
13,53672,87144,8823,000
7,225
127,978

Inventories........................................................
Deferred tax assets ............................................
Other current assets ..........................................
Total current assets .......................................
Property, plant and equipment at cost:
Buildings and structures ....................................
Machinery and equipment .................................
Lease assets .....................................................
Less accumulated depreciation .......................

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

803
3,712
1,093
2,334
3,626
(474)
11,094

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

¥100,687

1,177
3,347
1,099
2,599
5,402
(455)
13,169¥102,192

8,634
39,914
11,75325,09738,990(5,097)
119,291$1,082,656

LIABILITIES AND NET ASSETS

2010

2009

2010

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

¥19
476
9,009
4,608
679
4,632
19,423

¥44
174
8,960
4,983
688
5,335
20,184$204
5,118
96,87149,5487,301
49,807
208,849

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

3,884
541
1,231
362
278
6,296

4,208
932
719
394
360
6,613

41,764
5,817
13,237
3,892
2,989
67,69918,240–19,56745,895–
18,24019,56747,045

196,129–
210,398
493,495(3,717)
79,985(3,715)
81,137(39,968)
860,054(118)(5,966)(6,084)(304)(6,370)(6,674)(1,269)(64,150)(65,419)

Minority interests in consolidated subsidiaries ....

1,067

932

11,473

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

74,96875,395806,108

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

¥100,687¥102,192$1,082,656

Net assets:
Shareholders' equity:
Common Stock
Authorized- 185,476,000 shares
Issued:March 31, 2010 - 81, 257, 829 shares ............
March 31, 2009 - 81, 257, 829 shares ............
Capital surplus ..............................................
Retained earnings .........................................
Treasury stock at cost, 4,658,707 shares in 2010
and 4,656,810 shares in 2009 ........................

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

The accompanying notes are an integral part of these statements.

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

Thousands of U.S.
dollars (Note 5)

Millions of Yen

17

AMANO Corporation and Subsidiaries

Consolidated Balance Sheets
As at March 31, 2010 and 2009.

Millions of Yen

ASSETS2010

Current assets:
Cash and bank deposits .....................................
Marketable securities .........................................
Notes and accounts receivable:
Trade.............................................................
Less allowance for doubtful accounts ..............

2009

Thousands of U.S.
dollars (Note 5)

2010¥23,676
1,227¥18,720
1,192$254,581
13,194

21,134(214)
20,920
6,016
1,106
1,790
54,73523,651(199)
23,452
6,485
1,313
1,478
52,640227,247(2,301)
224,946
64,688
11,892
19,247588,548

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

27,803
19,643
1,711
49,157(33,445)
15,712
7,161
83
22,95626,187
19,156810
46,153(31,720)
14,433
7,156
1,258
22,847

298,957
211,215
18,398528,570(359,624)
168,946
77,000893
246,839

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

6,777
4,174
279
672
11,902

7,402
4,357
1,145
632
13,53672,87144,8823,000
7,225
127,978

Inventories........................................................
Deferred tax assets ............................................
Other current assets ..........................................
Total current assets .......................................
Property, plant and equipment at cost:
Buildings and structures ....................................
Machinery and equipment .................................
Lease assets .....................................................
Less accumulated depreciation .......................

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

803
3,712
1,093
2,334
3,626
(474)
11,094

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

¥100,687

1,177
3,347
1,099
2,599
5,402
(455)
13,169¥102,192

8,634
39,914
11,75325,09738,990(5,097)
119,291$1,082,656

LIABILITIES AND NET ASSETS

2010

2009

2010

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

¥19
476
9,009
4,608
679
4,632
19,423

¥44
174
8,960
4,983
688
5,335
20,184$204
5,118
96,87149,5487,301
49,807
208,849

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

3,884
541
1,231
362
278
6,296

4,208
932
719
394
360
6,613

41,764
5,817
13,237
3,892
2,989
67,69918,240–19,56745,895–
18,24019,56747,045

196,129–
210,398
493,495(3,717)
79,985(3,715)
81,137(39,968)
860,054(118)(5,966)(6,084)(304)(6,370)(6,674)(1,269)(64,150)(65,419)

Minority interests in consolidated subsidiaries ....

1,067

932

11,473

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

74,96875,395806,108

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

¥100,687¥102,192$1,082,656

Net assets:
Shareholders' equity:
Common Stock
Authorized- 185,476,000 shares
Issued:March 31, 2010 - 81, 257, 829 shares ............
March 31, 2009 - 81, 257, 829 shares ............
Capital surplus ..............................................
Retained earnings .........................................
Treasury stock at cost, 4,658,707 shares in 2010
and 4,656,810 shares in 2009 ........................

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

The accompanying notes are an integral part of these statements.

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

Thousands of U.S.
dollars (Note 5)

Millions of Yen

17

AMANO Corporation and Subsidiaries

AMANO Corporation and Subsidiaries

Consolidated Statements of Income

Consolidated Statements of Net Assets

For the years ended March 31, 2010 and 2009.

For the year ended March 31, 2010 and 2009.
Thousands of U.S.
dollars (Note 5)

Millions of Yen

2010

2009

2010

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

¥78,586¥91,812$845,011

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

44,654

51,617

480,151

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

33,93240,195364,860

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

32,00534,824344,140

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

1,927

5,371

20,720

Other income ( expenses ) :Interest and dividend income .............................

143

310

1,538

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

(31)

(38)

(333)

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

57

62

613

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

–

(655)

–

Gain on abolishment of retirement benefit plan...

–

281

–

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

4

13

43

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

(25)

(132)

(269)

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

(8)

(9)

(86)

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

1

13

11

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

–

(44)

–

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

(56)

(576)

(602)

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

354

127

3,806

Income before income taxes and minority interests....

2,366

4,723

25,441Millions of yen
Shareholders’ equity
Common stock

Capital surplus

Retained earnings

Treasury stock

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

¥18,240¥19,567¥47,045(¥3,715)

Total shareholders’equity¥81,137(2)(1,992)
1,011
(2)

–

–

(1,150)(2)(1,152)

Balance at March 3l, 2010¥18,240¥19,567¥45,895(¥3,717)¥79,985

Balance at March 3l, 2009
Changes during the year
Dividends from surplus
Net income
Purchase of treasury stock
Reduction in retained earnings from merger of consolidated andnonconsolidated subsidiaries
Net changes in items other than shareholders’ equity
Total changes during the year
Balance at March 3l, 2010

(1,992)
1,011
(169)

(169)

Valuation and translation adjustments
Minority interests
Net unrealized Foreign currency Total valuation andin consolidated Total net assets
gains(losses) on
translationtranslation
subsidiaries
other securities
adjustments
adjustments(¥304)(¥6,370)(¥6,674)¥932¥75,395(1,992)
1,011
(2)
(169)
186
186

404
404

590
590

135
135

725
(427)

(¥118)(¥5,966)(¥6,084)¥1,067¥74,968

Thousands of U.S. dollars (Note 5)
Shareholders’ equity

Income taxes :Current .............................................................

938

2,264

10,086

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

250

78

2,688

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

1,178

2,381

12,667

(167)

(167)

(1,796)¥1,011¥2,214$10,871

Minority interests in net income of consolidated subsidiaries
Net income

Yen

U.S. dollars (Note 5)

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

¥13.20¥28.14$0.142

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

26.00

30.00

0.280

Capital surplus

Retained earnings

Treasury stock

Balance at March 31, 2009
Changes during the year
Dividends from surplus
Net income
Purchase of treasury stock
Reduction in retained earnings from merger of consolidated andnonconsolidated subsidiaries
Net changes in items other than shareholders’ equity
Total changes during the year

$196,129$210,398$505,860($39,946)–−(12,365)(22)(12,387)

Balance at March 31, 2010

$196,129$210,398$493,495($39,968)$860,054

The accompanying notes are an integral part of these statements.
Balance at March 31, 2009
Changes during the year
Dividends from surplus
Net income
Purchase of treasury stock
Reduction in retained earnings from merger of consolidated andnonconsolidated subsidiaries
Net changes in items other than shareholders' equity
Total changes during the year
Balance at March 31, 201018

Total shareholders’equity$872,441

Common stock(21,419)(21,419)

10,871(22)(1,817)

10,871(22)(1817)

Valuation and translation adjustments
Minority interests
Net unrealized Foreign currency Total valuation andin consolidated Total net assets
gains(losses) on
translationtranslation
subsidiaries
other securities
adjustments
adjustments($3,269)($68,495)($71,764)$10,022$810,699(21,419)
10,871(22)(1,817)
2,000
2,000

4,345
4,345

6,345
6,345

1,451
1,451

7,796
(4,591)($1,269)($64,150)($65,419)$11,473$806,10819

AMANO Corporation and Subsidiaries

AMANO Corporation and Subsidiaries

Consolidated Statements of Income

Consolidated Statements of Net Assets

For the years ended March 31, 2010 and 2009.

For the year ended March 31, 2010 and 2009.
Thousands of U.S.
dollars (Note 5)

Millions of Yen

2010

2009

2010

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

¥78,586¥91,812$845,011

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

44,654

51,617

480,151

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

33,93240,195364,860

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

32,00534,824344,140

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

1,927

5,371

20,720

Other income ( expenses ) :Interest and dividend income .............................

143

310

1,538

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

(31)

(38)

(333)

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

57

62

613

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

–

(655)

–

Gain on abolishment of retirement benefit plan...

–

281

–

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

4

13

43

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

(25)

(132)

(269)

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

(8)

(9)

(86)

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

1

13

11

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

–

(44)

–

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

(56)

(576)

(602)

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

354

127

3,806

Income before income taxes and minority interests....

2,366

4,723

25,441Millions of yen
Shareholders’ equity
Common stock

Capital surplus

Retained earnings

Treasury stock

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

¥18,240¥19,567¥47,045(¥3,715)

Total shareholders’equity¥81,137(2)(1,992)
1,011
(2)

–

–

(1,150)(2)(1,152)

Balance at March 3l, 2010¥18,240¥19,567¥45,895(¥3,717)¥79,985

Balance at March 3l, 2009
Changes during the year
Dividends from surplus
Net income
Purchase of treasury stock
Reduction in retained earnings from merger of consolidated andnonconsolidated subsidiaries
Net changes in items other than shareholders’ equity
Total changes during the year
Balance at March 3l, 2010

(1,992)
1,011
(169)

(169)

Valuation and translation adjustments
Minority interests
Net unrealized Foreign currency Total valuation andin consolidated Total net assets
gains(losses) on
translationtranslation
subsidiaries
other securities
adjustments
adjustments(¥304)(¥6,370)(¥6,674)¥932¥75,395(1,992)
1,011
(2)
(169)
186
186

404
404

590
590

135
135

725
(427)

(¥118)(¥5,966)(¥6,084)¥1,067¥74,968

Thousands of U.S. dollars (Note 5)
Shareholders’ equity

Income taxes :Current .............................................................

938

2,264

10,086

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

250

78

2,688

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

1,178

2,381

12,667

(167)

(167)

(1,796)¥1,011¥2,214$10,871

Minority interests in net income of consolidated subsidiaries
Net income

Yen

U.S. dollars (Note 5)

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

¥13.20¥28.14$0.142

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

26.00

30.00

0.280

Capital surplus

Retained earnings

Treasury stock

Balance at March 31, 2009
Changes during the year
Dividends from surplus
Net income
Purchase of treasury stock
Reduction in retained earnings from merger of consolidated andnonconsolidated subsidiaries
Net changes in items other than shareholders’ equity
Total changes during the year

$196,129$210,398$505,860($39,946)–−(12,365)(22)(12,387)

Balance at March 31, 2010

$196,129$210,398$493,495($39,968)$860,054

The accompanying notes are an integral part of these statements.
Balance at March 31, 2009
Changes during the year
Dividends from surplus
Net income
Purchase of treasury stock
Reduction in retained earnings from merger of consolidated andnonconsolidated subsidiaries
Net changes in items other than shareholders' equity
Total changes during the year
Balance at March 31, 201018

Total shareholders’equity$872,441

Common stock(21,419)(21,419)

10,871(22)(1,817)

10,871(22)(1817)

Valuation and translation adjustments
Minority interests
Net unrealized Foreign currency Total valuation andin consolidated Total net assets
gains(losses) on
translationtranslation
subsidiaries
other securities
adjustments
adjustments($3,269)($68,495)($71,764)$10,022$810,699(21,419)
10,871(22)(1,817)
2,000
2,000

4,345
4,345

6,345
6,345

1,451
1,451

7,796
(4,591)($1,269)($64,150)($65,419)$11,473$806,10819

AMANO Corporation and Subsidiaries

Consolidated Statements of Cash Flows
For the years ended March 31, 2010 and 2009.
Thousands of U.S.
dollars (Note 5)

Millions of Yen

Millions of yen
Shareholders’ equity
Common stock

Capital surplus

Retained earnings

Treasury stock

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

¥18,240¥19,567¥49,225(¥711)

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

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

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

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

(37)

(37)

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

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

2010
Cash Flows from Operating Activities:
Income before income taxes and minority interests ..........
Adjustments to reconcile income before income taxes andminority interests to net cash provided by operating activities:
Depreciation and amortization ...................................
Amortization of goodwill ...........................................
Increase in provision for accrued retirement benefits ..............
Increase (decrease) in allowance for doubtful accounts ...........
Interest and dividend revenue....................................
Equity in earning of affiliates .....................................
Interest expenses ......................................................
Foreign currency translation (gain) loss......................
(Gain)Loss on sale of investments in securities ...........
Loss on write-down of investments in securities .........
(Gain)Loss on sale of fixed assets ..............................
Loss on disposal of fixed assets..................................
(Increase) decrease in trade notes and accounts receivable ..............
(Increase) decrease in inventories ..............................
Increase (decrease) in trade notes and accounts payable .....
Others ......................................................................
Subtotal ....................................................................
Interest and dividends received..................................
Interest paid .............................................................
Payment for extra retirement payments
Income taxes paid .....................................................
Income taxes refund ..................................................
Net cash provided by operating activities ...................
Cash Flows from Investing Activities:
Payment for purchase of marketable securities ..................
Proceeds from redemption of marketable securities ...........
Payment for purchase of property and equipment .............
Proceeds from sale of property and equipment ..................
Payment for acquisition of intangible assets ......................
Payment for acquisition of investments in securities ..........
Proceeds from sale of investments in securities .................
Proceeds from redemption of investments in securities ..........
Increase in time deposits..................................................
Decrease in time deposits.................................................
Loans to third parties.......................................................
Acquisition of operation...................................................
Collection of loans ...........................................................
Others ............................................................................
Net cash used in investing activities .............................
Cash Flows from Financing Activities:
Proceeds from short-term bank loans................................
Repayment for short-term bank loans ...............................
Proceeds from long-term debt ..........................................
Repayment for long-term debt ..........................................
Payment for acquisition of treasury stock .........................
Repayments of finance lease obligations ...........................
Dividends paid ................................................................
Dividends payment to minority interests ...........................
Net cash used in financing activities.............................
Effect of exchange rate changes on cash and cash equivalents .............
Net increase (decrease) in cash and cash equivalents ..............
Cash and cash equivalents at beginning of year .......................
Increase in cash and cash equivalents from newly consolidated subsidiary
Increase in cash and cash equivalents resulting from merger ofconsolidated subsidiary and unconsolidated subsidiary .............................
Cash and cash equivalents at end of year ................................
The accompanying notes are an integral part of these statements.

20

21

2009

2010

¥2,366¥4,723$25,441

4,676
667
(329)
28
(143)
(57)
31
(2)
(1)
56
4
25
2,661
534
0
(507)
10,009
207
(36)
(30)
(1,303)
217
9,064

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

50,2807,172(3,537)301(1,538)
(613)
333
(22)
(11)
602
43
269
28,6145,742
0(5,452)
107,624
2,226
(387)
(323)
(14,011)2,333
97,462(2,029)2,000(1,657)
5(1,639)
(806)
51
700
(4,625)
5,207
(2)
–
5
378
(2,412)(2,192)2,000(1,925)39(2,674)(1,823)79
2,500(2,644)
4,170
(2)
(282)
7
294
(2,453)(21,817)
21,505(17,817)54(17,624)(8,667)548
7,527(49,731)55,989
(22)
–
54
4,065
(25,935)

–
(1)
33
(52)
(1)
(333)
(1,992)(37)(2,383)(156)
4,113
16,709
111

3
(3)
95
(142)
(3,004)(79)(2,540)(23)(5,693)
1,423(490)
17,192
–

–
(11)
355
(559)
(11)
(3,581)(21,419)(398)(25,624)(1,677)44,226
179,666
1,194–¥20,933

7¥16,709–$225,086

AMANO Corporation and Subsidiaries

Consolidated Statements of Cash Flows
For the years ended March 31, 2010 and 2009.
Thousands of U.S.
dollars (Note 5)

Millions of Yen

Millions of yen
Shareholders’ equity
Common stock

Capital surplus

Retained earnings

Treasury stock

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

¥18,240¥19,567¥49,225(¥711)

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

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

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

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

(37)

(37)

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

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

2010
Cash Flows from Operating Activities:
Income before income taxes and minority interests ..........
Adjustments to reconcile income before income taxes andminority interests to net cash provided by operating activities:
Depreciation and amortization ...................................
Amortization of goodwill ...........................................
Increase in provision for accrued retirement benefits ..............
Increase (decrease) in allowance for doubtful accounts ...........
Interest and dividend revenue....................................
Equity in earning of affiliates .....................................
Interest expenses ......................................................
Foreign currency translation (gain) loss......................
(Gain)Loss on sale of investments in securities ...........
Loss on write-down of investments in securities .........
(Gain)Loss on sale of fixed assets ..............................
Loss on disposal of fixed assets..................................
(Increase) decrease in trade notes and accounts receivable ..............
(Increase) decrease in inventories ..............................
Increase (decrease) in trade notes and accounts payable .....
Others ......................................................................
Subtotal ....................................................................
Interest and dividends received..................................
Interest paid .............................................................
Payment for extra retirement payments
Income taxes paid .....................................................
Income taxes refund ..................................................
Net cash provided by operating activities ...................
Cash Flows from Investing Activities:
Payment for purchase of marketable securities ..................
Proceeds from redemption of marketable securities ...........
Payment for purchase of property and equipment .............
Proceeds from sale of property and equipment ..................
Payment for acquisition of intangible assets ......................
Payment for acquisition of investments in securities ..........
Proceeds from sale of investments in securities .................
Proceeds from redemption of investments in securities ..........
Increase in time deposits..................................................
Decrease in time deposits.................................................
Loans to third parties.......................................................
Acquisition of operation...................................................
Collection of loans ...........................................................
Others ............................................................................
Net cash used in investing activities .............................
Cash Flows from Financing Activities:
Proceeds from short-term bank loans................................
Repayment for short-term bank loans ...............................
Proceeds from long-term debt ..........................................
Repayment for long-term debt ..........................................
Payment for acquisition of treasury stock .........................
Repayments of finance lease obligations ...........................
Dividends paid ................................................................
Dividends payment to minority interests ...........................
Net cash used in financing activities.............................
Effect of exchange rate changes on cash and cash equivalents .............
Net increase (decrease) in cash and cash equivalents ..............
Cash and cash equivalents at beginning of year .......................
Increase in cash and cash equivalents from newly consolidated subsidiary
Increase in cash and cash equivalents resulting from merger ofconsolidated subsidiary and unconsolidated subsidiary .............................
Cash and cash equivalents at end of year ................................
The accompanying notes are an integral part of these statements.

20

21

2009

2010

¥2,366¥4,723$25,441

4,676
667
(329)
28
(143)
(57)
31
(2)
(1)
56
4
25
2,661
534
0
(507)
10,009
207
(36)
(30)
(1,303)
217
9,064

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

50,2807,172(3,537)301(1,538)
(613)
333
(22)
(11)
602
43
269
28,6145,742
0(5,452)
107,624
2,226
(387)
(323)
(14,011)2,333
97,462(2,029)2,000(1,657)
5(1,639)
(806)
51
700
(4,625)
5,207
(2)
–
5
378
(2,412)(2,192)2,000(1,925)39(2,674)(1,823)79
2,500(2,644)
4,170
(2)
(282)
7
294
(2,453)(21,817)
21,505(17,817)54(17,624)(8,667)548
7,527(49,731)55,989
(22)
–
54
4,065
(25,935)

–
(1)
33
(52)
(1)
(333)
(1,992)(37)(2,383)(156)
4,113
16,709
111

3
(3)
95
(142)
(3,004)(79)(2,540)(23)(5,693)
1,423(490)
17,192
–

–
(11)
355
(559)
(11)
(3,581)(21,419)(398)(25,624)(1,677)44,226
179,666
1,194–¥20,933

7¥16,709–$225,086

AMANO Corporation and Subsidiaries

Notes to the Consolidated Financial Statements
For the years ended March 31, 2010 and 2009

EquityPaid In Capitalownership (Thousands)%

1. Basis of Consolidated
Financial Statements

Company Name

The accompanying consolidated
financial statements of AMANO
Corporation [hereinafter called "theCompany"] and its subsidiaries havebeen prepared in accordance with theprovisions set forth in the Japanese Financial Instruments and Exchange Act
and its related accounting regulationsin Japan. The accounts of the Company and domestic subsidiaries includedin the consolidation are based on theaccounting records maintained in accordance with accounting principles
generally accepted in Japan, which
are different in certain respects as tothe application and the disclosure requirements of International Financial
Reporting Standards.
The information in the consolidated
financial statements is derived fromthe original text, scope, and the natureof that information, and is therefore
limited to that contained in the original text. However, certain reclassifications or summarizations of accounts
have been made to present the consolidated financial statements in a form
which is more familiar to the readers
outside Japan.

1) Amano USA Holdings, Inc.
100% US$ 111,702
2) Amano Cincinnati, Inc.
100% US$ 23,172
3) Amano Cincinnati Canada, Inc.
100%
C$ 4394) Amano Integrated Systems, Inc.
100%
US$ 4,349
5) Amano McGann, Inc.
100% US$ 46,418
6) Amano Pioneer Eclipse Corp.
100%
US$ 4,606
7) Amano Europe Holdings N.V.
100% EUR 72,094
8) Amano Europe N.V.
100% EUR 17,850
9) Horosmart S.A.
100% EUR 16,000
10) Horoquartz S.A.
100% EUR 20,000
11) Horoquartz Marocco S.A.
100%
DH 20012) Pial Technologies S.A.
100%
EUR 650
13) Scopus-Omnibadges S.A.S. *67%
EUR 820*Scopus S.A. and Omnibadges
S.A. merged into a single entity,
Scopus-Omnibadges S.A.S. on
January 1, 2009.
14) Amano Time & Parking Spain, S.A. *100% EUR 2,518*The company was newly consolidated in January 2009.
15) Amano Malaysia Sdn.Bhd.
100%
MR 2,500
16) Amano Cleantech Malaysia Sdn.Bhd.
90%
MR 20017)ATAS E & C Services(M) Sdn. Bhd.
100%
MR 15018)Amano Time & Air Singapore Pte. Ltd.
100%
S$700
19)PT. Amano Indonesia
100%
US$ 250
20)Amano Thai International Co., Ltd.
43% THB 8,000
21)Amano International Trading (Shanghai)Co., Ltd.
100%
US$ 200
22)Amano Korea Corp.
100% W 4,500,000
23)Amano Agency Corp.
44%¥10,000
24)Environmental Technology Company
100%¥20,000
25)Amano Management Service Corp.
73%¥205,000

2. Principles of Consolidation(1) Scope of Consolidation
The Company had 28 subsidiaries at
March 31, 2010; The accompanying
consolidated financial statements include the accounts of the Company
and those of its subsidiaries that arecontrolled by the Company. Under thecontrol concept, major subsidiaries inwhich the Company is able to exercise
control over operations are to be fully
consolidated.
The accounts of the overseas consolidated subsidiaries are prepared on thebasis of a December 31 fiscal year-end,
and are consolidated accordingly with
the Company at March 31, 2010 and2009, and for the years then ended.
The consolidated subsidiaries thathave been consolidated with the Company for the year ended March 31,
2010 are as follows:

2226)Amano Maintenance Engineering Corp.
65%¥30,000
27)Amano Business Solutions Corp.
97%¥300,000
28)Amano Musashi Electric Corp.
100%¥10,000
Note: Investment in Parkinsys
Technology Co., Ltd., a Taiwanese company, over which theCompany has the ability to exercise significant influence (theCompany owns 36.7 percent) is
accounted for using the equity
method.

(2) Accounting for investments
in unconsolidated subsidiaries and affiliates
None of the 11 unconsolidated subsidiaries and 1 affiliate are accounted
for by the equity method, because theeffect of their net income or losses andretained earnings on the accompanying Consolidated Financial Statements
are immaterial.

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

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

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

(5) Lease Assets

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

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

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

(6) Accounting for Financial
Instruments(a) Derivatives
All derivatives are stated at their fairvalues, with changes in fair value
included in net profit or loss for theperiod in which they arise.
(b) Securities
Securities held by the Company and its
subsidiaries are classified into four categories;
Trading securities, which are held
for the purpose of generating profits
on short-term differences in prices,
are stated at their fair values, withchanges in fair values included in net
profit or loss for the period in which
they arise. Additionally, securities
held in trusts for trading purposes areaccounted for in the same manner as
trading securities.
Held-to-maturity debt securities, that
the Company and its subsidiaries haveintent to hold to maturity, are statedat their costs after accounting forpremium or discount on acquisition,
which are amortized over the period
to maturity.
Investments of the Company in equity
securities issued by unconsolidated
subsidiaries and affiliates are accounted for by the equity method. Exceptionally, investments in certain unconsolidated subsidiaries and affiliates arestated at cost because the effect of application of the equity method would
be immaterial.
Other securities for which market quotations are available are stated at fairvalue. Net unrealized gains or losseson these securities are reported as aseparate item in the net assets at a netof-tax amount.
Other securities for which market quotations are unavailable are stated atcost, except as stated in the paragraphbelow.
In cases where the fair value of heldto-maturity debt securities, equity
securities issued by unconsolidated
subsidiaries and affiliates, or other securities had declined significantly andsuch impairment of the value is notdeemed temporary, those securities
are written down to the fair value andthe resulting losses are included in net
profit or loss for the period.

23(7) Appraisal of the Assets andLiabilities of Consolidated
Subsidiaries
The assets and liabilities of subsidiaries are accounted for the partial markto-market accounting method.

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

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

(10) Income Taxes
The Company recognizes tax effectof temporary differences between the
carrying amounts and the tax basis ofassets and liabilities. The provision
for income taxes is computed basedon the pretax income included in the
consolidated statements of income.
The asset and liability approach isused to recognize deferred tax assets
and liabilities for the expected future
tax consequences of temporary differences.

AMANO Corporation and Subsidiaries

Notes to the Consolidated Financial Statements
For the years ended March 31, 2010 and 2009

EquityPaid In Capitalownership (Thousands)%

1. Basis of Consolidated
Financial Statements

Company Name

The accompanying consolidated
financial statements of AMANO
Corporation [hereinafter called "theCompany"] and its subsidiaries havebeen prepared in accordance with theprovisions set forth in the Japanese Financial Instruments and Exchange Act
and its related accounting regulationsin Japan. The accounts of the Company and domestic subsidiaries includedin the consolidation are based on theaccounting records maintained in accordance with accounting principles
generally accepted in Japan, which
are different in certain respects as tothe application and the disclosure requirements of International Financial
Reporting Standards.
The information in the consolidated
financial statements is derived fromthe original text, scope, and the natureof that information, and is therefore
limited to that contained in the original text. However, certain reclassifications or summarizations of accounts
have been made to present the consolidated financial statements in a form
which is more familiar to the readers
outside Japan.

1) Amano USA Holdings, Inc.
100% US$ 111,702
2) Amano Cincinnati, Inc.
100% US$ 23,172
3) Amano Cincinnati Canada, Inc.
100%
C$ 4394) Amano Integrated Systems, Inc.
100%
US$ 4,349
5) Amano McGann, Inc.
100% US$ 46,418
6) Amano Pioneer Eclipse Corp.
100%
US$ 4,606
7) Amano Europe Holdings N.V.
100% EUR 72,094
8) Amano Europe N.V.
100% EUR 17,850
9) Horosmart S.A.
100% EUR 16,000
10) Horoquartz S.A.
100% EUR 20,000
11) Horoquartz Marocco S.A.
100%
DH 20012) Pial Technologies S.A.
100%
EUR 650
13) Scopus-Omnibadges S.A.S. *67%
EUR 820*Scopus S.A. and Omnibadges
S.A. merged into a single entity,
Scopus-Omnibadges S.A.S. on
January 1, 2009.
14) Amano Time & Parking Spain, S.A. *100% EUR 2,518*The company was newly consolidated in January 2009.
15) Amano Malaysia Sdn.Bhd.
100%
MR 2,500
16) Amano Cleantech Malaysia Sdn.Bhd.
90%
MR 20017)ATAS E & C Services(M) Sdn. Bhd.
100%
MR 15018)Amano Time & Air Singapore Pte. Ltd.
100%
S$700
19)PT. Amano Indonesia
100%
US$ 250
20)Amano Thai International Co., Ltd.
43% THB 8,000
21)Amano International Trading (Shanghai)Co., Ltd.
100%
US$ 200
22)Amano Korea Corp.
100% W 4,500,000
23)Amano Agency Corp.
44%¥10,000
24)Environmental Technology Company
100%¥20,000
25)Amano Management Service Corp.
73%¥205,000

2. Principles of Consolidation(1) Scope of Consolidation
The Company had 28 subsidiaries at
March 31, 2010; The accompanying
consolidated financial statements include the accounts of the Company
and those of its subsidiaries that arecontrolled by the Company. Under thecontrol concept, major subsidiaries inwhich the Company is able to exercise
control over operations are to be fully
consolidated.
The accounts of the overseas consolidated subsidiaries are prepared on thebasis of a December 31 fiscal year-end,
and are consolidated accordingly with
the Company at March 31, 2010 and2009, and for the years then ended.
The consolidated subsidiaries thathave been consolidated with the Company for the year ended March 31,
2010 are as follows:

2226)Amano Maintenance Engineering Corp.
65%¥30,000
27)Amano Business Solutions Corp.
97%¥300,000
28)Amano Musashi Electric Corp.
100%¥10,000
Note: Investment in Parkinsys
Technology Co., Ltd., a Taiwanese company, over which theCompany has the ability to exercise significant influence (theCompany owns 36.7 percent) is
accounted for using the equity
method.

(2) Accounting for investments
in unconsolidated subsidiaries and affiliates
None of the 11 unconsolidated subsidiaries and 1 affiliate are accounted
for by the equity method, because theeffect of their net income or losses andretained earnings on the accompanying Consolidated Financial Statements
are immaterial.

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

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

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

(5) Lease Assets

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

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

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

(6) Accounting for Financial
Instruments(a) Derivatives
All derivatives are stated at their fairvalues, with changes in fair value
included in net profit or loss for theperiod in which they arise.
(b) Securities
Securities held by the Company and its
subsidiaries are classified into four categories;
Trading securities, which are held
for the purpose of generating profits
on short-term differences in prices,
are stated at their fair values, withchanges in fair values included in net
profit or loss for the period in which
they arise. Additionally, securities
held in trusts for trading purposes areaccounted for in the same manner as
trading securities.
Held-to-maturity debt securities, that
the Company and its subsidiaries haveintent to hold to maturity, are statedat their costs after accounting forpremium or discount on acquisition,
which are amortized over the period
to maturity.
Investments of the Company in equity
securities issued by unconsolidated
subsidiaries and affiliates are accounted for by the equity method. Exceptionally, investments in certain unconsolidated subsidiaries and affiliates arestated at cost because the effect of application of the equity method would
be immaterial.
Other securities for which market quotations are available are stated at fairvalue. Net unrealized gains or losseson these securities are reported as aseparate item in the net assets at a netof-tax amount.
Other securities for which market quotations are unavailable are stated atcost, except as stated in the paragraphbelow.
In cases where the fair value of heldto-maturity debt securities, equity
securities issued by unconsolidated
subsidiaries and affiliates, or other securities had declined significantly andsuch impairment of the value is notdeemed temporary, those securities
are written down to the fair value andthe resulting losses are included in net
profit or loss for the period.

23(7) Appraisal of the Assets andLiabilities of Consolidated
Subsidiaries
The assets and liabilities of subsidiaries are accounted for the partial markto-market accounting method.

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

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

(10) Income Taxes
The Company recognizes tax effectof temporary differences between the
carrying amounts and the tax basis ofassets and liabilities. The provision
for income taxes is computed basedon the pretax income included in the
consolidated statements of income.
The asset and liability approach isused to recognize deferred tax assets
and liabilities for the expected future
tax consequences of temporary differences.

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

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

*Supplementary explanation:
On March 1, 2009, the Company
abolished its tax-qualified pension
plan and retirement lump-sum grantsystem, and shifted to a defined benefit corporate pension scheme and adefined contribution pension scheme,
applying Accounting to Transfer between Retirement Benefit Plans (ASBJ
Guidance No.1). A gain of ¥281 million relating to this shift was bookedas other income.

(13) Accrued Directors’ Retirement Benefits
In order to provide for payment until
the year ended March 31, 2008 of
retirement benefits to directors, theCompany had reserved funds for theamount payable at the fiscal year-end
in accordance with in-house rules for
directors’ retirement benefits, but theordinary general meeting of shareholders held on June 27, 2008, resolved
to abolish the directors’ retirement
benefits scheme effective from that
date. In conjunction with the abolition of this system, it was decided
to pay out the portion of directors’

retirement benefits accrued up to the
day of the ordinary general meeting ofshareholders. These payments shall bemade at the time each director retires
and shall fully dispose of the reserve
funds. These costs are booked as longterm accounts payable of ¥318 million
under long-term liabilities and othercurrent liabilities of ¥343 million undercurrent liabilities for the year ended
March 31, 2009.

completion for each contract can bereliably estimated. The percentage ofcompletion is measured by the percentage of total costs incurred to date toestimated total costs for each contract.
The completed-contract method continues to be applied to the contracts incase the percentage of completion cannot be reliably estimated.

(14) Research and Development Expenses(1) Recognizing Revenues andCosts of Construction Contracts

Research and development expenses
are charged to income as incurred.

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

(16) Revenue from Construction Contracts
Until the year ended March 31, 2009,
revenues and costs of construction
contracts were recognized by thecompleted-contract method. Effective
April 1, 2009, the Company and its
consolidated subsidiaries have applied
ASBJ No.15, “Accounting Standard forConstruction Contracts”, and its Guidance No.18, “Guidance on AccountingStandard for Construction Contracts”,
which was issued in December 27,
2007, to the construction contracts. In
accordance with ASBJ No.15 and its
Guidance No.18, revenues and costs ofconstruction contracts that commenced
on and after April 1, 2009 are recognized by the percentage-of-completion
method in case the percentage of

24

4. Changes in Accounting Policy

Until the year ended March 31, 2009,
revenues and costs of construction
contracts were recognized by thecompleted-contract method. Effective
April 1, 2009, the Company and its
consolidated subsidiaries have applied
ASBJ No.15, “Accounting Standard forConstruction Contracts”, and its Guidance No.18, “Guidance on AccountingStandard for Construction Contracts”,
which was issued in December 27,
2007, to the construction contracts. In
accordance with ASBJ No.15 and its
Guidance No.18, revenues and costs ofconstruction contracts that commenced
on and after April 1, 2009 are recognized by the percentage-of-completion
method in case the percentage ofcompletion for each contract can bereliably estimated. The percentage ofcompletion is measured by the percentage of total costs incurred to date toestimated total costs for each contract.
The completed-contract method continues to be applied to the contracts incase the percentage of completion cannot be reliably estimated. The effectof this change was immaterial to theconsolidated financial statements forthe year ended March 31, 2010.

(2) Accounting Standard forLease Transactions
The Company accounted for financelease transactions not involving transfer of ownership using a method applied to rental transactions, howeverfrom this fiscal year the Company
books them as regular sales transactions, due to application of the Accounting Standard for Lease Transactions (ASBJ Statement No. 13, issued
June 17, 1993, by the First Committeeof the Business Accounting Council,
and revised March 30, 2007) and the
Implementation Guidance on Accounting Standard for Lease Transactions (ASBJ Guidance No. 16, issued
January 18, 1994 by the Accounting
Systems Committee of the JapaneseInstitute of Certified Public Accountants and revised March 30, 2007).
Note that finance lease transactions
not involving transfer of ownershipmade prior to the beginning of thefirst year of application of the revised
Accounting Standard for Lease Transactions have been accounted for using
the method applied to rental transactions.
This change has no impact on profits.

(3) Application of Practical Solution on Unification of Accounting Policies Applied
to Foreign Subsidiaries
for Consolidated Financial
Statements
Effective April 1, 2008, the Company
has adopted the Practical Solution on
Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial Statements (ASBJ
Practical Issues Task Force No. 18, issued on May 17, 2006) and made thenecessary revisions to its consolidated
financial statements.
As a result, compared to the method
previously used, gross profit for theyear ended March 31, 2009, decreasedby ¥83 million, operating income forthe year ended March 31, 2009, declined by ¥821 million, and income
before income taxes and minority
interests for the year ended March
31, 2009, dropped by ¥1,146 million.
Retained earnings at the beginning of
the fiscal year of 2009 decreased by¥1,642 million.

(4) Financial Instruments
From this fiscal year the Company has
adopted the revised Accounting Standard for Financial Instruments (ASBJ
Statement No. 10, revised 2008) and
its Implementation Guidance on Disclosures about Fair Value of Financial
Instruments (ASBJ Guidance No. 19
Guidance, issued on March 10, 2008).

(a) Management policy
The management policy of the Com-pany is that temporary surplus fundshould be invested in low-risk financial instruments. The Company has
not held any high-risk financial instruments.

(b) Financial instrument andits risk
Both notes receivable and accounts
receivable as operating receivable
are exposed to credit-related losses
in the event of nonperformance bycounterparties. Both notes payable
and accounts payable as trade liability
are due and payable within one year.
Securities and investment in securities
are exposed to changes in its market
price. The Company holds securities
and investment in securities mainly as
held-to-maturity or due to relationshipbuilding with counterparties.

(c) Risk management policies
i) Management policy forcredit risk (losses in theevent of nonperformance bycounterparties)
The Company has a credit management policy. In accordance withthe credit management policy, theexposure to credit risk of both notes
receivable and accounts receivable
is monitored on an ongoing basis inorder to detect unrecoverable credits
in early stages as well as minimizingthem. The Company has operated
Fund Operation Council in place. In
accordance with the examination anddecision of the fund operation council,
the Company has made an investment
in held-to-maturity securities, which
consist largely of negotiable deposits
and securities graded at high credit
rating. The Company has expectedthat no held-to-maturity securities canfail to meet their obligations.

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

25

counterparties on an ongoing basis.

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

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

(5) Translation of Foreign Currency Financial Statements(Accounts of Overseas Subsidiaries)
The Company applied the average foreign exchange rates to the translationof all the profit and loss account. Morespecifically; all the profit and loss accounts are translated at the average
foreign exchange rates for the respective periods. On the other hand, all thebalance sheet accounts of foreign andaffiliates are translated at the foreignexchange rates prevailing at therespective balance sheet date except
common stock and capital surplus.

5. United States Dollar Amounts
The Company maintains its accounting records in Japanese yen. The
U.S. dollar amounts included in the
consolidated financial statements andnotes thereto represent the arithmetical results of translating Japanese yen
to U.S. dollars at a rate of ¥93=US $1,
the approximate effective rate of exchange prevailing on March 31, 2010.
The inclusion of U.S. dollar amounts
is solely for the convenience of readers outside Japan and is not intended
to imply that yen amounts could be
converted, realized, or settled in U.S.
dollars at that, or any other rate.

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

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

*Supplementary explanation:
On March 1, 2009, the Company
abolished its tax-qualified pension
plan and retirement lump-sum grantsystem, and shifted to a defined benefit corporate pension scheme and adefined contribution pension scheme,
applying Accounting to Transfer between Retirement Benefit Plans (ASBJ
Guidance No.1). A gain of ¥281 million relating to this shift was bookedas other income.

(13) Accrued Directors’ Retirement Benefits
In order to provide for payment until
the year ended March 31, 2008 of
retirement benefits to directors, theCompany had reserved funds for theamount payable at the fiscal year-end
in accordance with in-house rules for
directors’ retirement benefits, but theordinary general meeting of shareholders held on June 27, 2008, resolved
to abolish the directors’ retirement
benefits scheme effective from that
date. In conjunction with the abolition of this system, it was decided
to pay out the portion of directors’

retirement benefits accrued up to the
day of the ordinary general meeting ofshareholders. These payments shall bemade at the time each director retires
and shall fully dispose of the reserve
funds. These costs are booked as longterm accounts payable of ¥318 million
under long-term liabilities and othercurrent liabilities of ¥343 million undercurrent liabilities for the year ended
March 31, 2009.

completion for each contract can bereliably estimated. The percentage ofcompletion is measured by the percentage of total costs incurred to date toestimated total costs for each contract.
The completed-contract method continues to be applied to the contracts incase the percentage of completion cannot be reliably estimated.

(14) Research and Development Expenses(1) Recognizing Revenues andCosts of Construction Contracts

Research and development expenses
are charged to income as incurred.

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

(16) Revenue from Construction Contracts
Until the year ended March 31, 2009,
revenues and costs of construction
contracts were recognized by thecompleted-contract method. Effective
April 1, 2009, the Company and its
consolidated subsidiaries have applied
ASBJ No.15, “Accounting Standard forConstruction Contracts”, and its Guidance No.18, “Guidance on AccountingStandard for Construction Contracts”,
which was issued in December 27,
2007, to the construction contracts. In
accordance with ASBJ No.15 and its
Guidance No.18, revenues and costs ofconstruction contracts that commenced
on and after April 1, 2009 are recognized by the percentage-of-completion
method in case the percentage of

24

4. Changes in Accounting Policy

Until the year ended March 31, 2009,
revenues and costs of construction
contracts were recognized by thecompleted-contract method. Effective
April 1, 2009, the Company and its
consolidated subsidiaries have applied
ASBJ No.15, “Accounting Standard forConstruction Contracts”, and its Guidance No.18, “Guidance on AccountingStandard for Construction Contracts”,
which was issued in December 27,
2007, to the construction contracts. In
accordance with ASBJ No.15 and its
Guidance No.18, revenues and costs ofconstruction contracts that commenced
on and after April 1, 2009 are recognized by the percentage-of-completion
method in case the percentage ofcompletion for each contract can bereliably estimated. The percentage ofcompletion is measured by the percentage of total costs incurred to date toestimated total costs for each contract.
The completed-contract method continues to be applied to the contracts incase the percentage of completion cannot be reliably estimated. The effectof this change was immaterial to theconsolidated financial statements forthe year ended March 31, 2010.

(2) Accounting Standard forLease Transactions
The Company accounted for financelease transactions not involving transfer of ownership using a method applied to rental transactions, howeverfrom this fiscal year the Company
books them as regular sales transactions, due to application of the Accounting Standard for Lease Transactions (ASBJ Statement No. 13, issued
June 17, 1993, by the First Committeeof the Business Accounting Council,
and revised March 30, 2007) and the
Implementation Guidance on Accounting Standard for Lease Transactions (ASBJ Guidance No. 16, issued
January 18, 1994 by the Accounting
Systems Committee of the JapaneseInstitute of Certified Public Accountants and revised March 30, 2007).
Note that finance lease transactions
not involving transfer of ownershipmade prior to the beginning of thefirst year of application of the revised
Accounting Standard for Lease Transactions have been accounted for using
the method applied to rental transactions.
This change has no impact on profits.

(3) Application of Practical Solution on Unification of Accounting Policies Applied
to Foreign Subsidiaries
for Consolidated Financial
Statements
Effective April 1, 2008, the Company
has adopted the Practical Solution on
Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial Statements (ASBJ
Practical Issues Task Force No. 18, issued on May 17, 2006) and made thenecessary revisions to its consolidated
financial statements.
As a result, compared to the method
previously used, gross profit for theyear ended March 31, 2009, decreasedby ¥83 million, operating income forthe year ended March 31, 2009, declined by ¥821 million, and income
before income taxes and minority
interests for the year ended March
31, 2009, dropped by ¥1,146 million.
Retained earnings at the beginning of
the fiscal year of 2009 decreased by¥1,642 million.

(4) Financial Instruments
From this fiscal year the Company has
adopted the revised Accounting Standard for Financial Instruments (ASBJ
Statement No. 10, revised 2008) and
its Implementation Guidance on Disclosures about Fair Value of Financial
Instruments (ASBJ Guidance No. 19
Guidance, issued on March 10, 2008).

(a) Management policy
The management policy of the Com-pany is that temporary surplus fundshould be invested in low-risk financial instruments. The Company has
not held any high-risk financial instruments.

(b) Financial instrument andits risk
Both notes receivable and accounts
receivable as operating receivable
are exposed to credit-related losses
in the event of nonperformance bycounterparties. Both notes payable
and accounts payable as trade liability
are due and payable within one year.
Securities and investment in securities
are exposed to changes in its market
price. The Company holds securities
and investment in securities mainly as
held-to-maturity or due to relationshipbuilding with counterparties.

(c) Risk management policies
i) Management policy forcredit risk (losses in theevent of nonperformance bycounterparties)
The Company has a credit management policy. In accordance withthe credit management policy, theexposure to credit risk of both notes
receivable and accounts receivable
is monitored on an ongoing basis inorder to detect unrecoverable credits
in early stages as well as minimizingthem. The Company has operated
Fund Operation Council in place. In
accordance with the examination anddecision of the fund operation council,
the Company has made an investment
in held-to-maturity securities, which
consist largely of negotiable deposits
and securities graded at high credit
rating. The Company has expectedthat no held-to-maturity securities canfail to meet their obligations.

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

25

counterparties on an ongoing basis.

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

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

(5) Translation of Foreign Currency Financial Statements(Accounts of Overseas Subsidiaries)
The Company applied the average foreign exchange rates to the translationof all the profit and loss account. Morespecifically; all the profit and loss accounts are translated at the average
foreign exchange rates for the respective periods. On the other hand, all thebalance sheet accounts of foreign andaffiliates are translated at the foreignexchange rates prevailing at therespective balance sheet date except
common stock and capital surplus.

5. United States Dollar Amounts
The Company maintains its accounting records in Japanese yen. The
U.S. dollar amounts included in the
consolidated financial statements andnotes thereto represent the arithmetical results of translating Japanese yen
to U.S. dollars at a rate of ¥93=US $1,
the approximate effective rate of exchange prevailing on March 31, 2010.
The inclusion of U.S. dollar amounts
is solely for the convenience of readers outside Japan and is not intended
to imply that yen amounts could be
converted, realized, or settled in U.S.
dollars at that, or any other rate.

6. Cash and Cash Equivalents

10. Leases Commitments

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

Finance leases which commenced on or before March 31, 2008, other than those which are deemed to transfer the ownership ofthe leased assets are accounted for by the method that is applicable to operating leases.

Millions of Yen
2010
2009
¥23,676¥18,720

Minimum future lease payments under finance leases, which includes the imputed interest expense portion are summarized as follows:

Cash and bank deposits
Time deposits due overthree months
Cash and cash equivalents(2,743)¥20,933(2,011)¥16,709

Thousands of U.S.dollars ( Note 5 )2010$254,581(29,495)$225,086

7. Inventories

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

Thousands of U.S.dollars ( Note 5 )2010$31,000
7,366
26,322$64,688

Selling, general, and administrative expenses during the years ended March 31, 2010 and 2009 include principally:

Labor and payroll
Rental for properties
Travel and transportation

Acquisition cost, accumulated depreciation, net book value and depreciation expenses for the year ended March 31, 2010 and2009, if capitalized, are summarized as follows:

Acquisition cost
Accumulated depreciation
Net book value
Depreciation

8. Selling, General, and Administrative Expenses

Millions of Yen
2010
2009
SGA
SGA
¥13,690¥14,252
1,736
1,789
968
1,307

Millions of Yen
2010
2009
¥2,512¥3,346
1,918
2,267
¥594
¥1,079¥476

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

Thousands of U.S.dollars ( Note 5 )2010
SGA$147,240
18,667
10,409Provisions charged to operation during the years ended March 31, 2010 and 2009 are mainly as follows:

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

26

Thousands of U.S.dollars ( Note 5 )2010$27,011
20,624$6,387¥628

9. Provisions

Millions of Yen
2010
2009
¥1,079¥1,108
8
5
1,192
1,251
135
164

Thousands of U.S.dollars ( Note 5 )2010$3,441
2,946$6,387

Lease payments on finance lease contracts without transfer of ownership for the years ended March 31, 2010 and 2009 were¥476 ($5,118) and ¥628, respectively.

Inventories as of March 31, 2010 and 2009 consisted of the following:
Millions of Yen
2010
2009
¥2,883¥2,988
685
540
2,448
2,957
¥6,016¥6,485

Due within one year
Due over one year
Total

Millions of Yen
2010
2009
¥320
¥483
274
595
¥594
¥1,078

Thousands of U.S.dollars ( Note 5 )2010$11,60286
12,817
1,452

27$5,118

6. Cash and Cash Equivalents

10. Leases Commitments

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

Finance leases which commenced on or before March 31, 2008, other than those which are deemed to transfer the ownership ofthe leased assets are accounted for by the method that is applicable to operating leases.

Millions of Yen
2010
2009
¥23,676¥18,720

Minimum future lease payments under finance leases, which includes the imputed interest expense portion are summarized as follows:

Cash and bank deposits
Time deposits due overthree months
Cash and cash equivalents(2,743)¥20,933(2,011)¥16,709

Thousands of U.S.dollars ( Note 5 )2010$254,581(29,495)$225,086

7. Inventories

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

Thousands of U.S.dollars ( Note 5 )2010$31,000
7,366
26,322$64,688

Selling, general, and administrative expenses during the years ended March 31, 2010 and 2009 include principally:

Labor and payroll
Rental for properties
Travel and transportation

Acquisition cost, accumulated depreciation, net book value and depreciation expenses for the year ended March 31, 2010 and2009, if capitalized, are summarized as follows:

Acquisition cost
Accumulated depreciation
Net book value
Depreciation

8. Selling, General, and Administrative Expenses

Millions of Yen
2010
2009
SGA
SGA
¥13,690¥14,252
1,736
1,789
968
1,307

Millions of Yen
2010
2009
¥2,512¥3,346
1,918
2,267
¥594
¥1,079¥476

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

Thousands of U.S.dollars ( Note 5 )2010
SGA$147,240
18,667
10,409Provisions charged to operation during the years ended March 31, 2010 and 2009 are mainly as follows:

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

26

Thousands of U.S.dollars ( Note 5 )2010$27,011
20,624$6,387¥628

9. Provisions

Millions of Yen
2010
2009
¥1,079¥1,108
8
5
1,192
1,251
135
164

Thousands of U.S.dollars ( Note 5 )2010$3,441
2,946$6,387

Lease payments on finance lease contracts without transfer of ownership for the years ended March 31, 2010 and 2009 were¥476 ($5,118) and ¥628, respectively.

Inventories as of March 31, 2010 and 2009 consisted of the following:
Millions of Yen
2010
2009
¥2,883¥2,988
685
540
2,448
2,957
¥6,016¥6,485

Due within one year
Due over one year
Total

Millions of Yen
2010
2009
¥320
¥483
274
595
¥594
¥1,078

Thousands of U.S.dollars ( Note 5 )2010$11,60286
12,817
1,452

27$5,118

(*4) Repayment schedule for bonds payable, long-term loan payable, lease obligation and other interest-bearing
liabilities at the balance sheet date:

11. Financial Instruments
Differences between carrying amounts and estimated fair value as of March 31, 2010 are as follows:
Financial instruments whose fair values are hardly estimated are not stated on the following chart; refer to (*2)

(1) Cash and bank deposits(2) Notes and accounts receivable(3) Securities and investments in securities① Held-to-maturity② Other securities
Total (Asset)(4) Trade notes and accounts payable
Total (Liability)(1) Cash and bank deposits(2) Notes and accounts receivable(3) Securities and investment in securities① Held-to-maturity② Other securities
Total (Asset)(4) Trade notes and accounts payable
Total (Liability)

Millions of Yen
2010

Carrying
amounts¥23,676
21,134

Millions of Yen
2010
Estimated
fair value¥23,676
21,134

1,426
2,953¥49,189

1,422
2,953
¥49,185

(4)
–
(¥4)

¥9,009¥9,009¥9,009¥9,009––Carrying
amounts$254,581
227,247

Thousands of U.S.dollars ( Note 5 )2010
Estimated
fair value$254,581
227,247

15,33331,753$528,914

15,29031,753$528,871

(43)
–
($43)

$96,871$96,871$96,871$96,871––

Differencein amounts––

Bonds payable
Long-term loan payable
Lease obligation
Other interest-bearing liabilities
Total

Due
Within 1 year
–
–
¥476
–
¥476

The second
year
–
¥10
327
–
¥337

The third year
–
¥6
325
–
¥331

Differencein amounts––

Bonds payable
Long-term loan payable
Lease obligation
Other interest-bearing liabilities
Total

Due
Within 1 year––
$5,118–$5,118The second
year
–
$108
3,516
–
$3,624

The third year
–
$65
3,495
–
$3,560Carrying amounts
As of March 31, 2010
Thousands of U.S.dollars ( Note 5 )$14,634

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

Due
Within 1 year
$254,581
227,247
13,183–$495,011

2,151
3,226
$5,37728–
1,075$1,075

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

The unlisted securities as stated above are not included in securities and investment in securities of (3) because it is difficult toestimate the fair value based on the quoted market prices in active markets.

Thousands of U.S.dollars ( Note 5 )2010
Due after 1 year
Due after 5 years
but within 5 years
but within 10 years
–
–
–
–

–
60
–
¥60

Acquisition Market value
cost(Carrying value)¥1,427¥1,423

Unrealized
gains losses
(¥4)

Due
after 10 years
–
–
–
–
–

–
$43
2,118
–
$2,161

–
–
645
–
$645

Total

Unrealized
gains losses
($43)

¥952
302
1,254

¥221
¥2
223

$7,860$3,226
11,086$10,237$3,247
13,484$2,377
$21
2,398

2,021
100
2,121

1,603
97
1,700

(418)
(3)
(421)

21,731
1,075
22,806

17,237
1,043
18,280(4,494)(32)(4,526)¥3,152¥2,954(¥198)$33,892$31,764($2,128)

Acquisition Market value
cost(Carrying value)
Other securities with book carrying
amount exceeding acquisition cost
StocksSubtotal
Other securities with book carrying
amount not exceeding acquisition cost
Stocks
Bonds
Other
Subtotal

Acquisition Market value
cost(Carrying value)$15,344$15,301

¥731
300
1,031

2009

–
–
–

The fifth year ThereafterThousands of U.S.dollars ( Note 5 )2010Millions of Yen
Dueafter 10 years––

The fourth
year
–
$43
3,430
–
$3,473(*5) Held-to-maturity and Other securities with readily determinable fair value as of March 31, 2010 and 2009, are as follows:
Millions of Yen(*2) Financial instruments, whose fair values are hardly estimated, are as follows:(*3) Redemption schedule for monetary claim, securities and investment in securities at the balance sheet date:Millions of Yen
2010
Due
Due after 1 year
Due after 5 years
Within 1 year
but within 5 years
but within 10 years
Cash and bank deposits¥23,676––
Notes and accounts receivable
21,134––
Securities and investment in securities:
Held-to-maturity securities
1,226
200
–
Other Securities with maturity date
–
300
100
Total
¥46,036
¥500
¥100

–
¥4
197
–
¥201

2010

(NOTES)(* 1): Methods to determine the estimated fair value of financial instruments and other matters related to securities and derivative transactions.
Asset:(1) Cash on hand and in banks, and (2) Trade notes and accounts receivable:
Since these items are settled in a short period of time, their carrying value approximates fair value.
(3) Marketable securities and investment securities:
The fair value of stocks is based on quoted market prices. The fair value of debt securities is based on either quoted market prices or prices provided by thefinancial institutions making markets in these securities. For information on securities classified by holding purpose, please refer to (*5) Held-to-maturity andOther securities with readily determinable fair value as of March 31, 2010 and 2009.
Liability:(4) Trade notes and accounts payable:
Since these items are settled in a short period of time, their carrying value approximates fair value.

Millions of Yen¥1361

The fifth year ThereafterThousands of U.S.dollars ( Note 5 )2010

Cash and bank deposits

The fourth
year
–
¥4
319
–
¥323

Unrealized
gains losses

¥223
223

¥294
294

¥71
71

2,523
50
500
3,073

1,952
40
499
2,491

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

¥3,296¥2,785(¥511)

29

(*4) Repayment schedule for bonds payable, long-term loan payable, lease obligation and other interest-bearing
liabilities at the balance sheet date:

11. Financial Instruments
Differences between carrying amounts and estimated fair value as of March 31, 2010 are as follows:
Financial instruments whose fair values are hardly estimated are not stated on the following chart; refer to (*2)

(1) Cash and bank deposits(2) Notes and accounts receivable(3) Securities and investments in securities① Held-to-maturity② Other securities
Total (Asset)(4) Trade notes and accounts payable
Total (Liability)(1) Cash and bank deposits(2) Notes and accounts receivable(3) Securities and investment in securities① Held-to-maturity② Other securities
Total (Asset)(4) Trade notes and accounts payable
Total (Liability)

Millions of Yen
2010

Carrying
amounts¥23,676
21,134

Millions of Yen
2010
Estimated
fair value¥23,676
21,134

1,426
2,953¥49,189

1,422
2,953
¥49,185

(4)
–
(¥4)

¥9,009¥9,009¥9,009¥9,009––Carrying
amounts$254,581
227,247

Thousands of U.S.dollars ( Note 5 )2010
Estimated
fair value$254,581
227,247

15,33331,753$528,914

15,29031,753$528,871

(43)
–
($43)

$96,871$96,871$96,871$96,871––

Differencein amounts––

Bonds payable
Long-term loan payable
Lease obligation
Other interest-bearing liabilities
Total

Due
Within 1 year
–
–
¥476
–
¥476

The second
year
–
¥10
327
–
¥337

The third year
–
¥6
325
–
¥331

Differencein amounts––

Bonds payable
Long-term loan payable
Lease obligation
Other interest-bearing liabilities
Total

Due
Within 1 year––
$5,118–$5,118The second
year
–
$108
3,516
–
$3,624

The third year
–
$65
3,495
–
$3,560Carrying amounts
As of March 31, 2010
Thousands of U.S.dollars ( Note 5 )$14,634

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

Due
Within 1 year
$254,581
227,247
13,183–$495,011

2,151
3,226
$5,37728–
1,075$1,075

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

The unlisted securities as stated above are not included in securities and investment in securities of (3) because it is difficult toestimate the fair value based on the quoted market prices in active markets.

Thousands of U.S.dollars ( Note 5 )2010
Due after 1 year
Due after 5 years
but within 5 years
but within 10 years
–
–
–
–

–
60
–
¥60

Acquisition Market value
cost(Carrying value)¥1,427¥1,423

Unrealized
gains losses
(¥4)

Due
after 10 years
–
–
–
–
–

–
$43
2,118
–
$2,161

–
–
645
–
$645

Total

Unrealized
gains losses
($43)

¥952
302
1,254

¥221
¥2
223

$7,860$3,226
11,086$10,237$3,247
13,484$2,377
$21
2,398

2,021
100
2,121

1,603
97
1,700

(418)
(3)
(421)

21,731
1,075
22,806

17,237
1,043
18,280(4,494)(32)(4,526)¥3,152¥2,954(¥198)$33,892$31,764($2,128)

Acquisition Market value
cost(Carrying value)
Other securities with book carrying
amount exceeding acquisition cost
StocksSubtotal
Other securities with book carrying
amount not exceeding acquisition cost
Stocks
Bonds
Other
Subtotal

Acquisition Market value
cost(Carrying value)$15,344$15,301

¥731
300
1,031

2009

–
–
–

The fifth year ThereafterThousands of U.S.dollars ( Note 5 )2010Millions of Yen
Dueafter 10 years––

The fourth
year
–
$43
3,430
–
$3,473(*5) Held-to-maturity and Other securities with readily determinable fair value as of March 31, 2010 and 2009, are as follows:
Millions of Yen(*2) Financial instruments, whose fair values are hardly estimated, are as follows:(*3) Redemption schedule for monetary claim, securities and investment in securities at the balance sheet date:Millions of Yen
2010
Due
Due after 1 year
Due after 5 years
Within 1 year
but within 5 years
but within 10 years
Cash and bank deposits¥23,676––
Notes and accounts receivable
21,134––
Securities and investment in securities:
Held-to-maturity securities
1,226
200
–
Other Securities with maturity date
–
300
100
Total
¥46,036
¥500
¥100

–
¥4
197
–
¥201

2010

(NOTES)(* 1): Methods to determine the estimated fair value of financial instruments and other matters related to securities and derivative transactions.
Asset:(1) Cash on hand and in banks, and (2) Trade notes and accounts receivable:
Since these items are settled in a short period of time, their carrying value approximates fair value.
(3) Marketable securities and investment securities:
The fair value of stocks is based on quoted market prices. The fair value of debt securities is based on either quoted market prices or prices provided by thefinancial institutions making markets in these securities. For information on securities classified by holding purpose, please refer to (*5) Held-to-maturity andOther securities with readily determinable fair value as of March 31, 2010 and 2009.
Liability:(4) Trade notes and accounts payable:
Since these items are settled in a short period of time, their carrying value approximates fair value.

Millions of Yen¥1361

The fifth year ThereafterThousands of U.S.dollars ( Note 5 )2010

Cash and bank deposits

The fourth
year
–
¥4
319
–
¥323

Unrealized
gains losses

¥223
223

¥294
294

¥71
71

2,523
50
500
3,073

1,952
40
499
2,491

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

¥3,296¥2,785(¥511)

29

12. Retirement Benefits

13. Deferred Tax

Outline of the retirement benefit plans adopted

Deferred tax assets and liabilities (both current and non-current) consisted of the following elements:(1) Defined benefit corporate pension scheme : From March 1, 2009, the Company adopted a defined benefit corporate pension
scheme as part of its retirement benefit plan.
(2) Defined contribution pension scheme: From March 1, 2009, the Company adopted a defined contribution pension scheme as partof its retirement benefit plan.
(3) Employees’ pension fund: Since April 1, 1980, the Company has used employees’ pension fund plan (comprehensive establishmenttype) as supplement to its existing retirement benefit scheme. As of March 31, 2010, the total pension assets of the pension fundincluded ¥14,053 million of pension assets computed on the basis of the total proportion of the contribution.
On March 1, 2009, the Company abolished its tax-qualified pension plan and retirement lump-sum grant system, and shifted to adefined contribution pension scheme.

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

Thousands of U.S.
dollars ( Note 5 )2010$109,140(60,108)
49,032(7,774)344
151$41,753

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

Thousands of U.S.
dollars ( Note 5 )2010$6,161
2,667(1,764)
(32)
2,677
5,452
3,710
$18,871

–

(281)

–

¥1,755¥1,437$18,871* Contribution paid to defined contribution pension scheme.
The assumptions used for calculation of retirement benefits for the years ended March 31, 2010 and 2009 are as follows:
Method of attribution of estimated retirement
benefits to periods of employee service
Discount rate
Expected return on plan assets
Amortization period for unrecognized priorservice cost
Amortization period for unrecognized actuarial difference

2010

2009

Straight-line method

Straight-line method

2.5%
3.5%

2.5%
3.5%

10 years

10 years

10 years

10 years

30

Accrued enterprise tax

¥19

¥16

$204

Accrued employees' bonuses

665

676

7,151

Accounts payable and long-term accounts payable

130

269

1,398

1,562

1,698

16,796

Loss carried forward

708

445

7,613

Loss on write-down of investments in securities

249

233

2,677

Surplus on allowance for doubtful accounts

96

116

1,032

Unrealized loss on other securities

81

208

871

Unrealized gains

253

–

2,720

Others

532

815

5,720

Less: valuation allowance

(764)

(504)

(8,215)

Total deferred tax assets¥3,531¥3,972$37,967

Reserve for advanced depreciation of building

(20)

(20)

(215)

Acquired intangible assets

(322)

(335)

(3,462)Others

(112)

(99)

(1,204)

(454)

(454)

(4,881)¥3,077¥3,518$33,086

Deferred tax liabilities:

The components of retirement benefit expenses for the years ended March 31, 2010 and 2009 are as follows:
Millions of Yen
2010
2009
¥573
¥822
248
327
(164)
(279)
(3)
0
249
233
507
522
345
93
¥1,755¥1,718

Thousands of
U.S.dollars (Note 5)2010

Deferred tax assets:

Accrued retirement benefits to employees

The components of accrued retirement benefits to employees as of March 31, 2010 and 2009 are as follows:

Millions of Yen
2010
2009
¥10,150¥10,333(5,590)(4,751)
4,560
5,582
(723)
(1,411)32
36
14–¥3,883¥4,207

Millions of Yen
2010
2009

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

40.6%

40.6%

Entertainment and other nondeductible expenses

0.9

0.7

Dividend and other nontaxable income

(4.2)

(0.9)

Inhabitant tax on per capita levy

3.2

1.6

Nondeductible amortization of goodwill

8.7

6.1

Realization of tax benefits on operating losses

(0.6)

(0.3)

Tax credit for research and development expenses

(1.4)

(1.9)

Valuation allowance

8.6

4.8

Dfference of subsidiaries’ tax rates

(3.0)

–

Equity in earnings of affiliates

(1.0)

–

Others

(1.6)

(1.1)

50.2%

49.6%

Adjustments:

Actual tax rate31

12. Retirement Benefits

13. Deferred Tax

Outline of the retirement benefit plans adopted

Deferred tax assets and liabilities (both current and non-current) consisted of the following elements:(1) Defined benefit corporate pension scheme : From March 1, 2009, the Company adopted a defined benefit corporate pension
scheme as part of its retirement benefit plan.
(2) Defined contribution pension scheme: From March 1, 2009, the Company adopted a defined contribution pension scheme as partof its retirement benefit plan.
(3) Employees’ pension fund: Since April 1, 1980, the Company has used employees’ pension fund plan (comprehensive establishmenttype) as supplement to its existing retirement benefit scheme. As of March 31, 2010, the total pension assets of the pension fundincluded ¥14,053 million of pension assets computed on the basis of the total proportion of the contribution.
On March 1, 2009, the Company abolished its tax-qualified pension plan and retirement lump-sum grant system, and shifted to adefined contribution pension scheme.

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

Thousands of U.S.
dollars ( Note 5 )2010$109,140(60,108)
49,032(7,774)344
151$41,753

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

Thousands of U.S.
dollars ( Note 5 )2010$6,161
2,667(1,764)
(32)
2,677
5,452
3,710
$18,871

–

(281)

–

¥1,755¥1,437$18,871* Contribution paid to defined contribution pension scheme.
The assumptions used for calculation of retirement benefits for the years ended March 31, 2010 and 2009 are as follows:
Method of attribution of estimated retirement
benefits to periods of employee service
Discount rate
Expected return on plan assets
Amortization period for unrecognized priorservice cost
Amortization period for unrecognized actuarial difference

2010

2009

Straight-line method

Straight-line method

2.5%
3.5%

2.5%
3.5%

10 years

10 years

10 years

10 years

30

Accrued enterprise tax

¥19

¥16

$204

Accrued employees' bonuses

665

676

7,151

Accounts payable and long-term accounts payable

130

269

1,398

1,562

1,698

16,796

Loss carried forward

708

445

7,613

Loss on write-down of investments in securities

249

233

2,677

Surplus on allowance for doubtful accounts

96

116

1,032

Unrealized loss on other securities

81

208

871

Unrealized gains

253

–

2,720

Others

532

815

5,720

Less: valuation allowance

(764)

(504)

(8,215)

Total deferred tax assets¥3,531¥3,972$37,967

Reserve for advanced depreciation of building

(20)

(20)

(215)

Acquired intangible assets

(322)

(335)

(3,462)Others

(112)

(99)

(1,204)

(454)

(454)

(4,881)¥3,077¥3,518$33,086

Deferred tax liabilities:

The components of retirement benefit expenses for the years ended March 31, 2010 and 2009 are as follows:
Millions of Yen
2010
2009
¥573
¥822
248
327
(164)
(279)
(3)
0
249
233
507
522
345
93
¥1,755¥1,718

Thousands of
U.S.dollars (Note 5)2010

Deferred tax assets:

Accrued retirement benefits to employees

The components of accrued retirement benefits to employees as of March 31, 2010 and 2009 are as follows:

Millions of Yen
2010
2009
¥10,150¥10,333(5,590)(4,751)
4,560
5,582
(723)
(1,411)32
36
14–¥3,883¥4,207

Millions of Yen
2010
2009

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

40.6%

40.6%

Entertainment and other nondeductible expenses

0.9

0.7

Dividend and other nontaxable income

(4.2)

(0.9)

Inhabitant tax on per capita levy

3.2

1.6

Nondeductible amortization of goodwill

8.7

6.1

Realization of tax benefits on operating losses

(0.6)

(0.3)

Tax credit for research and development expenses

(1.4)

(1.9)

Valuation allowance

8.6

4.8

Dfference of subsidiaries’ tax rates

(3.0)

–

Equity in earnings of affiliates

(1.0)

–

Others

(1.6)

(1.1)

50.2%

49.6%

Adjustments:

Actual tax rate31

14. Segment Information(2) Geographic Segments(1) Industry Segments

Information by geographic areas based on location for the years ended and as of March 31, 2010 and 2009 is

The Companies operate primarily in the following two businesses:

summarized as follows:

1. Time information
2. Environmental equipment
Millions of Yen
2010
Time Information Environment
Total
Eliminations/Corporate Consolidated Total
Net Sales:
Customers
Intersegment
Total
Operating Expenses
Operating Income¥59,542–
59,54255,250¥4,292¥19,044–
19,044
18,888¥156¥78,586–
78,586
74,138¥4,448–––¥2,521(¥2,521)¥78,586–
78,58676,659¥1,927

AssetsDepreciation
Capital expenditures¥46,754
3,627
3,115

¥16,265
623
215¥63,019
4,250
3,330

¥37,668426
10¥100,687
4,676
3,340

Time Information

Millions of Yen
2009
Environment
Total
Eliminations/Corporate Consolidated Total

Net Sales:
Customers
Intersegment
Total
Operating Expenses
Operating Income¥64,177–
64,17759,200¥4,977¥27,635–
27,63524,422¥3,213¥91,812–91,812
83,622¥8,190–––¥2,819(¥2,819)¥91,812–91,81286,441¥5,371

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

¥22,829620
827¥66,567
4,347
6,507

¥35,625422
177¥102,192
4,769
6,684

Thousands of U.S. dollars (Note 5)2010
Time Information Environment
Total
Eliminations/Corporate Consolidated Total
Net Sales:
Customers
Intersegment
Total
Operating Expenses
Operating Income$640,237–
640,237
594,086$46,151$204,774–
204,774
203,097$1,677$845,011–
845,011797,183$47,828–––$27,108($27,108)$845,011–
845,011824,291$20,720

AssetsDepreciation
Capital expenditures$502,731
39,00033,494$174,892
6,699
2,312

$677,623
45,69935,806$405,033
4,581
108$1,082,656
50,28035,91432

Domestic(in Japan)

Asia

Millions of Yen
2010
Overseas
Total
North America Europe

Net Sales:
Customers
Intersegment
Total
Operating Expenses
Operating Income¥58,182
1,265
59,44754,982¥4,465¥4,207
12
4,219
3,910
¥309

¥10,518
162
10,68010,738(¥58)¥5,679
31
5,710
6,038
(¥328)¥78,586
1,470
80,05675,668¥4,388–(¥1,470)(1,470)991(¥2,461)¥78,586–
78,58676,659¥1,927

Assets¥41,619¥3,785¥9,704¥9,315¥64,423¥36,264¥100,687

Eliminations/ Consolidated
Corporate
Total

Domestic(in Japan)

Asia

Millions of Yen
2009
Overseas
Total
North America Europe

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

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

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

Domestic(in Japan)

Asia

Thousands of U.S. dollars (Note 5)
2010
Overseas
Eliminations/ Consolidated
Total
Corporate
Total
North America Europe

Net Sales:
Customers
Intersegment
Total
Operating Expenses
Operating Income$625,612
13,602
639,214591,204$48,010$45,237
129
45,36642,043$3,323$113,097
1,742
114,839
115,462($623)$61,065 $845,011
333
15,806
61,398860,81764,925
813,634($3,527) $47,183–($15,806)(15,806)
10,657($26,463)$845,011–
845,011824,291$20,720

Assets$447,516$40,699$104,344$100,161$389,936$1,082,656

33$692,720

Eliminations/ Consolidated
Corporate
Total

14. Segment Information(2) Geographic Segments(1) Industry Segments

Information by geographic areas based on location for the years ended and as of March 31, 2010 and 2009 is

The Companies operate primarily in the following two businesses:

summarized as follows:

1. Time information
2. Environmental equipment
Millions of Yen
2010
Time Information Environment
Total
Eliminations/Corporate Consolidated Total
Net Sales:
Customers
Intersegment
Total
Operating Expenses
Operating Income¥59,542–
59,54255,250¥4,292¥19,044–
19,044
18,888¥156¥78,586–
78,586
74,138¥4,448–––¥2,521(¥2,521)¥78,586–
78,58676,659¥1,927

AssetsDepreciation
Capital expenditures¥46,754
3,627
3,115

¥16,265
623
215¥63,019
4,250
3,330

¥37,668426
10¥100,687
4,676
3,340

Time Information

Millions of Yen
2009
Environment
Total
Eliminations/Corporate Consolidated Total

Net Sales:
Customers
Intersegment
Total
Operating Expenses
Operating Income¥64,177–
64,17759,200¥4,977¥27,635–
27,63524,422¥3,213¥91,812–91,812
83,622¥8,190–––¥2,819(¥2,819)¥91,812–91,81286,441¥5,371

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

¥22,829620
827¥66,567
4,347
6,507

¥35,625422
177¥102,192
4,769
6,684

Thousands of U.S. dollars (Note 5)2010
Time Information Environment
Total
Eliminations/Corporate Consolidated Total
Net Sales:
Customers
Intersegment
Total
Operating Expenses
Operating Income$640,237–
640,237
594,086$46,151$204,774–
204,774
203,097$1,677$845,011–
845,011797,183$47,828–––$27,108($27,108)$845,011–
845,011824,291$20,720

AssetsDepreciation
Capital expenditures$502,731
39,00033,494$174,892
6,699
2,312

$677,623
45,69935,806$405,033
4,581
108$1,082,656
50,28035,91432

Domestic(in Japan)

Asia

Millions of Yen
2010
Overseas
Total
North America Europe

Net Sales:
Customers
Intersegment
Total
Operating Expenses
Operating Income¥58,182
1,265
59,44754,982¥4,465¥4,207
12
4,219
3,910
¥309

¥10,518
162
10,68010,738(¥58)¥5,679
31
5,710
6,038
(¥328)¥78,586
1,470
80,05675,668¥4,388–(¥1,470)(1,470)991(¥2,461)¥78,586–
78,58676,659¥1,927

Assets¥41,619¥3,785¥9,704¥9,315¥64,423¥36,264¥100,687

Eliminations/ Consolidated
Corporate
Total

Domestic(in Japan)

Asia

Millions of Yen
2009
Overseas
Total
North America Europe

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

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

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

Domestic(in Japan)

Asia

Thousands of U.S. dollars (Note 5)
2010
Overseas
Eliminations/ Consolidated
Total
Corporate
Total
North America Europe

Net Sales:
Customers
Intersegment
Total
Operating Expenses
Operating Income$625,612
13,602
639,214591,204$48,010$45,237
129
45,36642,043$3,323$113,097
1,742
114,839
115,462($623)$61,065 $845,011
333
15,806
61,398860,81764,925
813,634($3,527) $47,183–($15,806)(15,806)
10,657($26,463)$845,011–
845,011824,291$20,720

Assets$447,516$40,699$104,344$100,161$389,936$1,082,656

33$692,720

Eliminations/ Consolidated
Corporate
Total

Corporate Data
(3) Overseas Sales

Board of Directors

Domestic Operations

Overseas sales for the years ended March 31, 2010 and 2009 are summarized as follows:

President/CEO

HEAD OFFICESYSTEM CENTERS

Kaoru Haruta

275 Mamedocho, Kohoku-ku, Yokohama,TOKYO System Center

Kanagawa, JAPAN 222-8558

KANAGAWA System Center

Millions of Yen
2010
2009
Overseas sales
Asia
North America
EuropeOthers
Total
Percentage of overseas sales
to consolidated net sales¥4,354
10,527
5,679
171¥20,731

Thousands of U.S.dollars (Note 5)
2010¥4,795
13,047
6,544
231¥24,61726.4%$46,817
113,194
61,064
1,839$222,914

26.8%

NAGOYA System Center

Senior Executive Directors

Haruhiko Yamaguchi

FACILITIESOSAKA System Center

YOKOHAMA Facility

SENDAI System Center

Executive Directors

TSUKUI Facility

SAPPORO System Center

Toshio Kusanagi

HOSOE Facility

OMIYA System Center

Minoru Koyama

MIYAKODA Facility

SHINJUKU System Center

Toshiaki ImuraSHINAGAWA System Center

Nobuyuki Tabata

SALES OFFICESTACHIKAWA System Center

Izumi Nakajima

80 Sales Offices Located in major cities,

SHIZUOKA System Center

Seiken Uyama

including

NAGANO System Center
NIIGATA System Center

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

15. Per Share Data
Net assets and net income per share as of and for the years ended March 31, 2010 and 2009:
Yen
2010
Amounts per share
Net assets
Net income:
Basic
Diluted2009¥964.78¥972.08

13.20
–

28.14
–

U.S.dollars (Note 5)
2010$10.374
0.142–

Director

TOKYO Office

KANAZAWA System Center

Hiroshi Shiraishi

YOKOHAMA Office

HIROSHIMA System Center

NAGOYA Office

TAKAMATSU System Center

Auditors

OSAKA Office

FUKUOKA System Center

Keizo Ueno

SAPPORO OfficeKazuo Unno

SENDAI Office

DOMESTIC SUBSIDIARIES

Satoru Ueno

OMIYA Office

AMANO BUSINESS SOLUTIONS COR-

Yasutaka Hishiyama

NAGANO Office

PORATIONNIIGATA Office

ENVIRONMENTAL TECHNOLOGY CO., LTD.

Operating Officers

HAMAMATSU Office

AMANO MANAGEMENT SERVICE

Masamiki Konno

KANAZAWA Office

CORPORATION

Naoki Nakata

KYOTO Office

AMANO MAINTENANCE ENGINEERING

Bungo Nogawa

OKAYAMA Office

CORPORATION

Kenji Kohori

HIROSHIMA Office

AMANO ECO TECHNOLOGY CORPORATION

Yoshio Kishi

TAKAMATSU Office

AMANO MUSASHI ELECTRIC CORPORATION

Toru Ueno

FUKUOKA Office

AMANO TIME BUSINESS CORPORATION

Takeshi Akagi

AMANO AGENCY CORPORATION

Yutaka Kaneko
Isao Terasaki
Kunihiro Ihara

34

35

Corporate Data
(3) Overseas Sales

Board of Directors

Domestic Operations

Overseas sales for the years ended March 31, 2010 and 2009 are summarized as follows:

President/CEO

HEAD OFFICESYSTEM CENTERS

Kaoru Haruta

275 Mamedocho, Kohoku-ku, Yokohama,TOKYO System Center

Kanagawa, JAPAN 222-8558

KANAGAWA System Center

Millions of Yen
2010
2009
Overseas sales
Asia
North America
EuropeOthers
Total
Percentage of overseas sales
to consolidated net sales¥4,354
10,527
5,679
171¥20,731

Thousands of U.S.dollars (Note 5)
2010¥4,795
13,047
6,544
231¥24,61726.4%$46,817
113,194
61,064
1,839$222,914

26.8%

NAGOYA System Center

Senior Executive Directors

Haruhiko Yamaguchi

FACILITIESOSAKA System Center

YOKOHAMA Facility

SENDAI System Center

Executive Directors

TSUKUI Facility

SAPPORO System Center

Toshio Kusanagi

HOSOE Facility

OMIYA System Center

Minoru Koyama

MIYAKODA Facility

SHINJUKU System Center

Toshiaki ImuraSHINAGAWA System Center

Nobuyuki Tabata

SALES OFFICESTACHIKAWA System Center

Izumi Nakajima

80 Sales Offices Located in major cities,

SHIZUOKA System Center

Seiken Uyama

including

NAGANO System Center
NIIGATA System Center

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

15. Per Share Data
Net assets and net income per share as of and for the years ended March 31, 2010 and 2009:
Yen
2010
Amounts per share
Net assets
Net income:
Basic
Diluted2009¥964.78¥972.08

13.20
–

28.14
–

U.S.dollars (Note 5)
2010$10.374
0.142–

Director

TOKYO Office

KANAZAWA System Center

Hiroshi Shiraishi

YOKOHAMA Office

HIROSHIMA System Center

NAGOYA Office

TAKAMATSU System Center

Auditors

OSAKA Office

FUKUOKA System Center

Keizo Ueno

SAPPORO OfficeKazuo Unno

SENDAI Office

DOMESTIC SUBSIDIARIES

Satoru Ueno

OMIYA Office

AMANO BUSINESS SOLUTIONS COR-

Yasutaka Hishiyama

NAGANO Office

PORATIONNIIGATA Office

ENVIRONMENTAL TECHNOLOGY CO., LTD.

Operating Officers

HAMAMATSU Office

AMANO MANAGEMENT SERVICE

Masamiki Konno

KANAZAWA Office

CORPORATION

Naoki Nakata

KYOTO Office

AMANO MAINTENANCE ENGINEERING

Bungo Nogawa

OKAYAMA Office

CORPORATION

Kenji Kohori

HIROSHIMA Office

AMANO ECO TECHNOLOGY CORPORATION

Yoshio Kishi

TAKAMATSU Office

AMANO MUSASHI ELECTRIC CORPORATION

Toru Ueno

FUKUOKA Office

AMANO TIME BUSINESS CORPORATION

Takeshi Akagi

AMANO AGENCY CORPORATION

Yutaka Kaneko
Isao Terasaki
Kunihiro Ihara

34

35

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

12.AMANO TIME&PARKING SPAIN S.A.

140 Harrison Avenue Roseland, New
Jersey 07068 U.S.A.
2. AMANO CINCINNATI,INC.
HEAD OFFICE

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

130 Commerce Blvd. Loveland, Ohio
45140-7726 U.S.A.

C/. Plomo, N°5-7, Planta 2 - Oficina 2 08038 Barcelona, Espana
13. HOROSMART, S.A.
CORPORATE HEADQUARTERS

Tour CIT, 3 rue de l'Arrivée 75015 Paris,
France14. HOROQUARTZ, S.A.
HEAD OFFICE

Tour CIT, 3 rue de l'Arrivée 75015 Paris,
France15. HOROQUARTZ MAROC, S.A.

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

4. AMANO CINCINNATI CANADA INC.

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

16. SCOPUS-OMNIBADGES, S.A.S

5. AMANO PIONEER ECLIPSE CORPORATION

Parc Cadéra Sud Bâtiment W, 33700
Merignac, France

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

17. PIAL TECHNOLOGIES, S.A.

6. AMANO McGANN, INC.
HEAD OFFICEZI route de Niort BP 251 85205
Fontenay-le-Comte, France

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

18. AMANO KOREA CORPORATIONHEAD OFFICE

7. ACCU-TIME SYSTEMS, INC.

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

420 Somers Road, Ellington, Connecticut
06029 U.S.A.
8. ACCU-TECH SYSTEMS, Ltd.

C1 Caerphilly Business Park Caerphilly
Mid Glamorgan CF83 3ED, U.K.
9. AMANO EUROPE HOLDINGS, N.V.
CORPORATE HEADQUARTERS

19. @PARK KOREA CO.,LTD.

#408 Woolim E-Biz Center2,
Yangpyeong-Dong 3Ga-16,
Yeongdeungpo-Gu,Seoul,Korea
20. TIME STAMP SOLUTION CORPORATION

Westerring 2, 3600 Genk, Belgium#411, Woolim E-BIZ Center2,
Yangpyeong-Dong 3Ga-16,
Yeongdeungpo-Gu, Seoul, Korea

10. AMANO EUROPE, N.V.
CORPORATE OFFICE

Westerring 2, 3600 Genk, Belgium
11. AMANO UK. LTD

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

Room No.901,Zhongdian Mansion 1029
Nanquan Road (N), Pudong, Shanghai,
China 200122
22. AMANO SOFTWARE ENGINEERING(SHANGHAI)CO.,LTD.

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

No.12, Jalan Pengacara U1/48, Temasya
Industrial Park 40150 Shah Alam, Selangor Darul Ehsan, Malaysia
24. AMANO MALAYSIA SDN.BHD.

No.12, Jalan Pengacara U1/48, Temasya
Industrial Park 40150 Shah Alam, Selangor Darul Ehsan, Malaysia
25. ATAS E&C SERVICES (M) SDN.BHD.

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

BIK 213 Henderson Road, #04-06/07
Henderson Industrial Park Singapore
15955327. PT.AMANO INDONESIA

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

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

5 Kings Couat, harwood Rood, Horsham,West Sussex, England, RH13 5UR, U.K.

8,11
13,14,16,17

9,10
4

6

12

3
18,19,20

15

AMANO CORPORATION

21,22

28
23,24,25
26
27

36

5

1,2,7

FINANCIAL REPORT
April 2009 March 2010

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

CAT-114900
K9506A2-2010.6