FINANCIAL REPORT
April 2014 March 2015

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

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

11. North American and European markets
North America: In the Parking Systems business, we will further expand business bystepping up sales of Amano McGann’s new systems and by improving our ability topropose solutions through enhancement of peripheral services. In the Information System business, we will continue to scale up operations by launching a new series ofAccu-Time Systems Inc. terminals into the market and developing cloud services. In
the Clean Systems business, we will strengthen the business foundation and scale up
operations of the wooden floor sanding equipment division of Amano Pioneer Eclipse
Corp. In the Environmental Systems business, we will boost sales of standard equipment to Japanese companies operating outside Japan, centering on automobile-related
businesses.
Europe: In the Information Systems business, we will continue to enhance Horoquartz’s
French customer base and will strive to permeate and expand the markets in Belgium
and Germany. In the Parking Systems business, we will strive to expand business by accelerating the deployment of low-cost barcode systems and focusing efforts on the newcommissioned management services business.
2. Asian, Latin American and other emerging markets
Asia: In the Parking Systems business, we will scale up operations by expanding salesof barcode systems and enhancing the commissioned management services business.
In the Environmental Systems business, we will strengthen our engineering capabilities
as well as sales and service systems for Japanese companies operating in Asia by making use of the ties between our Group companies across Asia and our head office inJapan. We will also expand our local production capabilities in order to enhance costcompetitiveness.
Latin America: In light of future local business expansion, we will explore market frontiersin the Information Systems, Parking Systems, and Environmental Systems businesses.
3. Japanese market
Japan: We will reinforce ties among Group companies and strengthen our capacity
to provide holistic solutions (which cover hardware, software, and services) across all
business fields both qualitatively and quantitatively. We will also increase our stable ofcustomers by locking in existing customers as well as our flow of customers by acquiring new customers.
[2] Numerical targets
In FY 2016 (ending March 2017), the final fiscal year of the medium-term businessplan, the Company aims to achieve net sales of at least ¥130,000 million and an operating profit of at least ¥13,000 million.

Numerical targets

Net sales
Operating profit
Operating profit ratio (%)
Ordinary profit
Net profit(Millions of yen)

FY 2014(ending March 2015)
Results
AmountYoY (%)
109,837
7.5%
9,357
6.0%
8.5%
–
10,189
8.1%
6,794
28.2%
2

FY 2015(ending March 2016)
Amendment
AmountYoY (%)
120,000
9.3%
11,30020.8%
9.4%–
11,700
14.8%
7,300
7.4%

FY 2016(ending March 2017)
Amount130,000
13,00010.0%
13,6008,300

YoY (%)
8.3%
15.0%
–
16.2%
13.7%

3. Basic Policy on Distribution of Profits and Payment of Dividends forThis Fiscal Year and the Next
Amano places great importance on its policy for the payment of dividends to shareholders. Fundamental to this is its policy for the return of profit to shareholders, based on
maintaining a stable ordinary dividend of ¥26 annually (interim dividend of ¥13 andyear-end dividend of ¥13), together with appropriate results-based distributions of profitsand flexible purchasing of treasury stock. The Company aims to maintain a payout ratioof at least 40% on a consolidated basis and a ratio of dividend to net assets of at least 2.5%.
In line with this policy, taking into account our current-year operations results, we plan to
pay a year-end dividend of ¥23 per share, an increase of ¥6 per share compared with theamount paid at the end of the previous year. As a result, the annual per-share dividend
will be ¥38 (including the ¥15 per share paid as the interim dividend). This corresponds
to a dividend payout ratio of 42.8% and a 3.3% ratio of dividends to net assets on a consolidated basis.
With regard to the dividend for the next fiscal year, in line with our Basic Policy on Distribution of Profits and in view of our Outlook for Fiscal Year Ending March 31, 2016, we
aim to pay an annual per-share dividend of ¥40 (with an interim dividend of ¥20 and a
year-end dividend of ¥20).
Retained earnings will be earmarked to fund effective investment aimed at the fundamental enhancement of the Company’s capacity to conduct its business operations. This will
include the expansion and strengthening of existing business fields, strategic investment
in growth fields, and spending on research and development, as well as the rationalization of production plants and equipment for the purpose of reducing costs and further
improving product quality.

Izumi NAKAJIMA
President
Representative Director

3Analysis of Business Results
Business Results in the Year Ended March 31, 2015

During the fiscal year ended March
31, 2015, the Japanese economy
seemed to be on track to a moderate recovery from the decline that
set in following the consumption
tax hike. This was because overseas
economies enjoyed a rebound, led
mainly by developed economies
such as the United States, and as
lower crude oil prices and the depreciation of the yen continued, capital investment was growing, thanks
to an improvement in corporate
profits, and also thanks to the suppor t from government economic

measures and steady personal consumption due to improvements inthe employment and income situation.

needs and strove to reduce thecosts of goods sold (COGS) andselling, general, and administrative(SG&A) expenses.

Amid this business environment, theAmano Group worked on global
marketing and product deployment
as well as the enhancement of its
capacity to provide holistic solutions, based on its new mediumterm business plan launched in April
last year. Under this plan, the Groupset forth the management concept
of “Challenge to a New Stage,” aconcept aimed at making the organization a “100-year company.” The
Amano Group also concentrated
on thoroughly uncovering customer

As a result of the above, during the
fiscal year under review, the Company recorded sales of ¥109,837
million, up by 7.5% year-on-year. Operating profit increased by 6.0% to¥9,357 million, ordinary profit went
up by 8.1% to ¥10,189 million, andnet income increased by 28.2% to¥6,794 million, resulting in increases
in both income and profit.
The following is a breakdown ofsales by business division.

Sales by business division(Unit: Millions of yen)

FY2013Category

FY2014

Change(April 1, 2013–March 31, 2014) (April 1, 2014–March 31, 2015)
AmountRatio (%)

AmountRatio (%)

Amount%Information Systems

22,97922.5

23,558

21.5

579

2.5

Time Management Products

4,087

4.0

4,100

3.7

12

0.3

Parking Systems

48,80847.851,817

47.2

3,009

6.2

Subtotal

75,876

74.3

79,477

72.4

3,601

4.7

Environmental Systems

18,157

17.8

20,639

18.8

2,481

13.7

Clean Systems

8,097

7.9

9,720

8.8

1,623

20.1

Subtotal

26,25525.7

30,360

27.6

4,105

15.6

Total

102,131100.0

109,837

100.0

7,706

7.5

Time Information System business:

Environment System business:

4Time Information System business• Information Systems:
Time & attendance (T&A), payroll,human-resource management, access
control, and cafeteria systems• Time Management Products:
Time recorders and time stamps• Parking Systems:
Parking and bicycle-parking space
management systems, and commissioned parking lot management businessInformation Systems
The business environment for thisbusiness division has remained solid
because companies’ informationrelated investments have continued
to grow in Japan in light of the economic recovery. Fur thermore, thecloud computing business sector has
continued to expand in Japan.
In response to these market conditions, the Company added access
control and mental health solutions
to the “3-in-1” proposal comprisingof time & attendance (T&A), payroll,and human-resource management,
thus striving to make more proposals for comprehensive solutions
associated with the transition fromowning systems to using systems.
Domestic sales for the current term
were as follows: hardware sales increased by ¥305 million (5.1%) yearon-year, software sales decreasedby ¥236 million (6.7%), and sales
generated by maintenance contracts
and supplies services increased by¥112 million (3.1%). The increase inhardware sales was a result of orders for large projects and increased
sales of access control systems, andsoftware sales decreased due to theeffects of the reduced sales momentum following a period of strong
PC demand for the replacementof Windows XP-based PCs and a
spike in consumer demand aheadof the consumption tax hike. By
product category, T&A system sales
decreased by ¥297 million (3.2%)
while access control system sales
were up by ¥481 million (40.4%).
Overall overseas sales increased by¥305 million (3.5%). The sales ofAccu-Time Systems Inc. in Nor th
America decreased, and the sales of
Horosmart S.A. in Europe increased,
partly due to foreign exchange effects.
As a result of the above, sales in thisbusiness division totaled ¥23,558
million, representing an increase of
2.5% year-on-year.

Time Management Products
In Japan, this business division continued to struggle under difficult
conditions because the demand
structure has shifted from standard machines to systems.
In this mar ket environment, theCompany concentrated on uncovering new demand by strengthening its Internet and mail order
ser vice-based sales promotions
and launching new products suchas a time recorder equipped withaggregation software compatible
with PCs.
Regarding domestic sales for the
cur rent ter m, when comparedwith a year earlier, standard equipment sales increased by ¥27 million (2.3%) and supply goods sales
decreased by ¥53 million (6.2%).

5

Although sales in Asia remainedsluggish, sales in Nor th America
and Europe increased year-on-year.
As a result, overall overseas sales
increased by ¥48 million (3.9%).
As a result of the above , sales
in this business division totaled¥4,100 million, representing an increase of 0.3% year-on-year.

Parking Systems
To respond to the increasingly
diverse needs of parking lot management in Japan the Parking Systems business division has beenworking on increasing the level ofconvenience for parking lot users,
improving parking lot management
efficiency by utilizing the Internet
and ensuring safety and security inparking lots.
In response to these market conditions, the Company strove toenhance the functionality and usability of its system equipment offerings and to fur ther strengthen
its cooperation with major parking
lot management firms. At the sametime, the Company also concentrated on offering various services
to small to medium-sized parking lot
management firms provided by theCompany’s parking lot data centers.
The Company has also made efforts
to expand into new markets such as
security-gate systems, toll road systems, bicycle parking systems, etc.
Parking equipment sales increased¥302 million (1.7%) year-on-year.
Revenue from maintenance contracts and supplies ser vices decreased by ¥176 million (1.9%). The
commissioned parking lot management business of Group subsidiaryAmano Management Service Corporation has been steadily expanding, and the number of parking spaces under management increased by
29,400 (10.4%) from the end of theprevious fiscal year.
Overall overseas sales increasedby ¥2,203 million (16.8%). Sales
for Amano McGann, Inc. in NorthAmer ica increased due to thelaunch of new systems while sales
for Europe increased due to increased orders in Asian and Oceanian markets. Meanwhile, sales in
the Asian region increased as sales
in Korea grew due partly to foreignexchange effects.
As a net result of the above, theParking Systems business division
provided sales totaling ¥51,817 million, up by 6.2% year-on-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• Clean Systems:
Cleaning equipment, dr y-carecleaning systems, and cleaning
management services

Environmental Systems
The operating environment for thisbusiness division continues to improve as capital investment in Japanis on a rising trend suppor ted by
the recovering economy. In addition,
capital investment by Japanese companies operating abroad has also
remained strong.

In this mar ket environment, theCompany strengthened its standard
equipment proposals in Japan while
seeking to win increased orders
from customers in the pharmaceutical, foods and cosmetics markets.
Meanwhile , with the aim of attracting demand from Japanesecompanies operating overseas, theCompany reinforced its engineering abilities along with its sales andser vice platforms by enhancing
cooperation with overseas Group
companies. Moreover, it endeavoredto achieve greater cost competitiveness by means of expanding its local
procurement and assembly.
During the current term, domestic
sales of standard equipment increased by ¥735 million (12.8%),
sales of lar ge-scale systems increased by ¥1,024 million (19.4%)
and sales of maintenance contracts
and supplies services increased by¥34 million (1.0%) year-on-year.
Overall overseas sales increasedby ¥888 million (27.2%). Spearheaded by the Asian market, capital
investment by Japanese companies
remained strong resulting in higher
revenues.
As a result of the above, sales of thisbusiness division totaled ¥20,639
million, up by 13.7% year-on-year.

Clean Systems
This business division is seeing increasing needs for aesthetic maintenance services and high-value-added peripheral clean work in Japan;
however, the prolonged corporate
restraints on cleaning management
costs still continues.
To cope with this market environment, the Company focused on

6strengthening holistic cleanlinesssolutions by incorporating peripheral cleaning work. In addition, amid
times of aging cleaning wor ker s
and an increasing number of nonexperienced workers, the division
worked on uncovering new demandby launching robotic cleaners which
realize higher equipment safety levels, improved usability, and higher
work efficiency without compromising quality.
Domestic sales for cleaning equipment decreased by ¥325 million(14.7%) year-on-year, revenue frommaintenance contracts and supplies
ser vices decreased by ¥7 million(0.2%), and revenue from commissioned cleaning services decreasedby ¥7 million (0.5%).
Overall overseas sales increased by¥2,019 million (94.0%) as sales forNorth America grew owing to thecontribution from the wooden floor
sanding equipment business newly
added to the business domain during the current term.
As a net result of the above, sales ofthis business division totaled ¥9,720
million, up by 20.1% year-on-year.

abilities decreased by ¥1,947 million
year-on-year. The principal factors behind this were a decrease of ¥1,643
million in net defined benefit liabilities
associated with changes in accounting
policies and other accounting changes.

Analysis of Financial Condition(i) Assets, liabilities, and net assets• Assets
Total assets as of March 31, 2015
amounted to ¥131,560 million, up
by ¥8,722 million from the previous fiscal year-end. Current assets
increased by ¥6,862 million year-onyear. This was chiefly due to a ¥4,277
million increase in notes and accounts
receivable-trade and a ¥1,358 million
increase in raw materials and supplies.
Fixed assets increased by ¥1,860 million year-on-year. This was primarily
due to an increase of ¥1,923 million
in intangible fixed assets, despite adecrease of ¥223 million in tangible
fixed assets.

• Net Assets
Total net assets as of March 31, 2015
amounted to ¥92,148 million, up by¥8,665 million from the previous fiscal
year-end. This was primarily due to anincrease of ¥5,344 million in shareholders’ equity due to the posting of
net income and changes in accounting policies and an increase of ¥3,367
million in total accumulated othercomprehensive income resulting froman increase in foreign currency translation adjustments.
(ii) Cash Flows
Consolidated cash and cash equivalents decreased by ¥1,148 million
from the previous fiscal year-end to a
total of ¥30,526 million as of March
31, 2015. The status of each type ofcash flow at year-end and the underlying factors are as follows.

• Liabilities
Total liabilities as of March 31, 2015
amounted to ¥39,411 million, up by¥56 million year-on-year. Current liabilities increased by ¥2,003 million
year-on-year. This was attributableprimarily to an increase of ¥1,503 million in other current liabilities due toan increase in accrued expenses andan increase of ¥1,059 million in tradenotes and accounts payable. Fixed li-(1) Cash flow from operating activities
Net cash provided by operating activities totaled ¥7,518 million.This was attributable primarily to income before

income taxes amounting to ¥10,307
million, and depreciation and amortization amounting to ¥4,137 million, despite income taxes payments
amounting to ¥4,585 million and anincrease in trade notes and accounts
receivable of ¥3,494 million.
(2) Cash flow from investing activities
Net cash used in investing activities totaled −¥6,519 million. This was largely
due to expenditures of ¥7,541 million
for the placement of time deposits,¥2,238 million for the acquisition of
tangible fixed assets, ¥2,044 million for
the acquisition of business, and ¥2,000
million for the acquisition of securities. These outflows were more thanoffset by proceeds of ¥6,299 million
from the withdrawal of time depositsand ¥2,300 million from the redemption of securities.
(3) Cash flow from financing activities
Net cash used in financing activities
amounted to −¥2,969 million. Thiswas chiefly due to the payment ofdividends amounting to ¥2,450 million and repayment of finance leaseobligations of ¥1,668 million, despite
proceeds from sale and leaseback of¥1,622 million.

Reference: Trend of cash flow indicators
As of Mar. 31, 2011

As of Mar. 31, 2012

As of Mar. 31, 2013

As of Mar. 31, 2014

As of Mar. 31, 2015

Equity ratio (%)

70.3

69.6

69.8

67.6

69.8

Fair value equity ratio (%)

59.3

56.9

62.3

66.5

83.7

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

31.4

50.2

34.7

37.3

52.2

Interest coverage ratio

275.2

158.1

207.7

219.7

122.9

Notes : Equity ratio: Equity capital/Total assets
		Fair value equity ratio: Gross market capitalization/Total assets
		Ratio of cash flow to interest-bearing liabilities: Interest-bearing liabilities/Cash flow from operating activities
		Interest coverage ratio: Cash flow from operating activities/Interest payments
Assumptions
		* All indicators are calculated on the basis of consolidated financial values.
		* Gross market capitalization is calculated by multiplying the closing price of the Company’s shares at the year-end by the number of shares of common stock issued and outstanding at the year-end (less treasury stock).
		* The term “cash flow from operating activities” refers to cash flow from operating activities posted under the consolidated statements of cash flows. The term “interest-bearing liabilities” refers to those liabilities stated in the consolidated balance sheets on
which interest is paid. Interest payments equate with the interest paid recorded in the consolidated statements of cash flows.

7Outlook for Fiscal YearEnding March 31, 2016
During the next fiscal year ending March 31, 2016, although theoutlook for overseas economies
is uncer tain, we forecast that theJapanese economy will continue torecover with the improving trendof corporate profits thanks to thedecline in crude oil prices and yen
depreciation. Capital investment is
expected to remain firm while theimproving trend of employment andincome situations will contribute to
the recovery of individual consumption.
Amid this business environment,
Amano Corporation and its Group
companies continue to emphasize
the following strategies: 1) emphasis
on Time & Ecology business domains, and enhancement of corebusiness; 2) becoming a niche leader
in the business domain in which we
excel; 3) ceaseless restructuring; and4) management based on cash flow.
In line with these four fundamental
strategies, we will work to address
the impor tant challenges in the
new medium-term business plan
described in “3. Business Policies” onpage 10 with a view to maximizing
the corporate value of Amano Corporation while aiming to become
a 100-year Company having “Challenge to a New Stage” as its management concept.
The following business results areprojected for the next fiscal year

ending March 31, 2016: net sales of¥120,000 million, operating profitof ¥11,300 million, ordinary profitof ¥11,700 million, and net income
attributable to parent company
shareholder s of ¥7,300 million.
These projections assume currency
exchange rates of ¥117 to the US
dollar and ¥125 to the euro.

Operating and Other Risk Factors
Matters relating to the qualitative
infor mation contained in thesesummary financial statements andrelating to the consolidated financial
statements that could be envisaged
as having a possible material impact
on investors are described below.
Ever y effor t are made to identify
factors that may now or in the future pose a risk to the undertakingof business by the Amano Group,and these risk factors are then eliminated or otherwise managed in thecourse of business.
Forward-looking statements are current as of the date of the release of
these financial results (June, 2015).
(i) Impact on earnings due tochanges in the business environment
The Amano Group uses the unique
technologies and know-how it has
accumulated to provide customers
with high-quality products, services
and solutions, thereby gaining large
market shares in each sphere ofbusiness in Japan, Nor th America,

8

Europe, and Asia, and developing its
business globally.
In the year ended March 31, 2015,
the Time Information System business accounted for 72.4% of total
sales, and the Environment Systembusiness accounted for 27.6%. Before the deduction of unallocatedexpenses, the Time Information System business contributed 72.7% tooperating profit, while the Environment System business contributed
27.3%. In terms of weighted averagesales over the last five years, theTime Information System businessaccounted for 73.3% of total sales
and 76.9% of operating profit.
One future r isk factor is that if
market expansion is forecast for abusiness activity within the Time Information System business segment(which accounts for a large proportion of the Group’s business) forsuch reasons as a significant change
in the demand str ucture or thecreation of a new market, entities
in other industries or other powerful competitors may be tempted toenter the market. In such an event,if a competitor were to enter with
innovative products or solutions
that surpass Amano’s, the Amano
Group’s market advantage would
decline, which may have a material
impact on its business performance.
(ii) Fluctuations in exchange rates
The Group engages in businessactivities on a global scale and has
production and sales bases overseas.
In view of this, the Group’s businessresults may be impacted by fluctuations in exchange rates when theproceeds for overseas transactions
are converted into yen.
(iii) Information security
In the course of providing systemsolutions and developing cloud business ser vices (e.g., ASP, SaaS, andhosting services), the Amano Grouphandles confidential information,such as personal information concerning, or provided by, customers.
In view of this, the Company has
strengthened and thoroughly implemented security control measures
based on the Information Security
Management Rules. Specifically, theCompany has implemented measures to protect confidential information (e.g., encr ypting hard disk
drives and external media) as wellas provided periodic staff training
through e-learning. Furthermore, theCompany obtained the Privacy Markcertification in February 2014 andhas implemented all possible measures to ensure information security,
including super vision of ser viceproviders and thorough compliancewith internal rules. Nevertheless, theoccurrence of an unforeseen situation that results in loss or leakageof confidential or personal information as described above could havean adverse material impact on theGroup’s business performance due
to factors such as loss of confidence.

(iv) Natural disasters
Natural disasters (e.g., large-scale
earthquakes, windstorms, or floods)
may damage human lives or property. The Amano Group has implemented necessar y measures suchas having employees always carr yemergency contact information
cards even during ordinar y times,
relocating file ser vers to external
data centers, and developing a system for setting up an emergency
response headquarters to respondto emergency situations. However, if
offices or sites at sales and production bases are damaged or if a situation arises in which it is difficult for
employees to engage in operations,business activities may be temporarily suspended.

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

1) Time Information System business•Information Systems
In the Information Systems, the economic
environment in Japan has become positive,
and labor authorities have continued efforts
to more strictly monitor unpaid overtimeand long working hours (overworking); potential demand among companies for T&A
systems, which are used to establish andbuild labor time management systems, hastranslated into effective demand in efforts
to ensure compliance through appropriate
working hours management. In addition,
against the backdrop of the need to respond(v) Overseas business development

to the My Number System and the preven-

The Amano Group has been developing its business globally in Japan,
Nor th America, Europe, and Asia.
Therefore, there is a possibility thata situation may arise in which business operations are disrupted dueto the application of unique laws, ordinances, or regulations or social disorder due to political disturbances,war, or terrorism, etc. in countries orregions where the Group conducts
business, which may adversely impact the Group’s business performance.

tion of overworking as well as the review oflabor standards to realize diverse working
styles from the viewpoint of improving laborproductivity, demand for both company
system updates and systems for using cloudcomputing and smart devices is expected toincrease.
Given this market environment, for smalland medium-sized enterprise markets, wewill further strengthen proposals by adding
the mental healthcare system to the 3-in-1
management system, covering T&A, payroll,and human resource management, andwe will also expand the market by offering
comprehensive solutions including hardware,
software, and cloud services. In the mediumsized enterprise market, we will enter thefinancial accounting market by tying up with
CREO CO., LTD. and work to expand op-

9erations with the aim of becoming a “mini-

sales of new systems and strengthen solu-

and Latin America, we will boost sales of

ERP vendor” by enhancing software for T&A,

tion proposals by expanding and improving

standard equipment to Japanese compa-

human resources, payroll, and accounting as

peripheral services to enlarge the market. In

nies operating outside Japan, centering on

well as strengthening our consulting sales

Europe, we will accelerate the development

automobile-related businesses.

activities.

of low-cost barcode systems and expand

In overseas markets, we will expand and im-

our business by working on the new com-•Clean Systems

prove our cloud services in Europe and themissioned management service business. In

In the Clean Systems, while the trend of

United States. Further, Horoquartz (France)

Asia, we will aim to expand our businesscompanies trying to reduce cleaning costs

aims to expand its market into other areas

by strengthening low-end barcode systems

continues, amid the aging of sanitary workers

of Europe, while Accu-Time Systems Inc.

and the commissioned management service

and an increase in the number of inexperi-(North America) aims to strengthen its cus-business.

enced workers, needs to improve safety andtomer base by introducing a new series ofterminals.

•Parking Systems

operability of cleaning equipment have been

2) Environment System businessincreasing. At the same time, the need for•Environmental Systems

maintaining building aesthetics at low cost

In the Environmental Systems, capital invest-

has also been increasing.

As for the Parking Systems, amidst thement has bottomed out in Japan as a result

Given this market environment, in Japan we

economic recovery, the parking lot-relatedof the recovering economy, and Japanese-

will strengthen our customer base by intro-

market has been expanding against theaffiliated companies operating abroad exhibit

ducing cleaning robots and new products

backdrop of the vitalization of the real estatea trend of increasing their capital investment,

into the market, advancing into the factorymarket and the recovery in automobile

which has been expanding from China andmarket, and expanding sales of small scrub-sales volume, etc. In addition to the needSoutheast Asia to the Americas.

bers in response to the opening up of small

for parking lot management cost reduction,

Given this market environment, in Japan weurban supermarkets and the increase inensuring of safety and security in parking lots,

will aggressively capture demand mainly forthe number of eat-in areas at convenienceand consideration of the environment, thestandard equipment and expand sales in thestores. With the aim of becoming a “totalneed to propose solutions to improve user

pharmaceutical, food, and cosmetics markets,

cleanliness service provider,” we also pro-convenience has been increasing.

which are expected to grow steadily. We will

mote comprehensive proposals, including

Given this market environment, we aim toalso work to strengthen our engineering ca-

those for commissioned cleaning services

become a “parking facility service provider”

pabilities and comprehensive sales, including

and aesthetic maintenance.

by further strengthening tie-ups with majorthat of peripheral equipment, by tie-ups with

In overseas markets, we will capitalize on theparking lot management companies while

industrial equipment manufacturers with thedemand of Japanese-affiliated distribution

improving the functions and operability of

aim of becoming a “global engineering multi-

companies opening up stores in the Asiansystem equipment as well as providing vari-

vendor.”region and further scale up our business byous services through our parking lot data

As for overseas markets, in Asia, we will

strengthening the operational foundation

center for small- and medium-sized parking

strengthen our engineering capabilities andfor the wooden floor sanding equipment

lot management companies. In addition,ability to offer products and render services

division of Amano Pioneer Eclipse Corp. in

we will strengthen and expand our efforts

to Japanese companies operating outside

North America.

related to facilities such as security gates, toll

Japan by tie-ups between our Group com-roads, and bicycle parking lots in order topanies across Asia and our head office in

expand our business.

Japan. We will also expand our local pro-

As for overseas markets, in the United

curement and assembly operations in orderStates, Amano McGann, Inc. will step up

to enhance cost competitiveness. In North

10

Business Activities

Information Systems
System for the Middle-High Market:“TimePro-VG” sales are growing.
Launched new system for the small
businesses!
Since its launch in July 2013, the“TimePro-VG” designed for the MiddleHigh market, is now being used by many
companies and orders continue to growsteadily. The “TimePro-VG” is highly evaluated for its functions such as alerts forlong working hours, various calculations
and flexible settings to meet the user
company’s requirements that come witha full range of support & services.
Looking forward we will aim to becomea “Mini ERP vendor” by collaboratingwith CREO (an equity affiliate since
March 2013) which developed andowns the software “ZeeM HR & Payroll”
and “ZeeM Accounting”. Together with
Amano’s T&A systems, it will enable us
to offer a comprehensive solution from
T&A, HR, Payroll and Accounting in fullscale.
In addition, our time recorder equippedwith PC software, the “TimeP@CK” wasremodeled and released in October
2014 for the small businesses using timecards. Various enhancements have been
made to facilitate diversifying needs
such as multiple management, increased
working shifts, irregular and flexible
working hours etc. which small businesses now face. We will expand themarketing of “TimeP@CK” to various
types of industries such as manufacturing, services, and retail.

Time Recorderequipped with PC
software “TimeP@CK”

Parking Systems
Growing demand for bicycle parking
systems! Accelerating global deployment
Bicycle and motorcycle parking lots
were traditionally installed mainly as apart of urban development, but in recent years, such installations are expanding initiated by large commercial facilities
and railway companies in the form ofcoin parking and mechanized parking.
Amano is in a position to apply its accumulated knowledge in car parking andis set to enhance services even further.
For instance, the data center service“Parking Web” can be applied for bicycle/ motorcycle parking where parking lot
utilization and equipment monitoring
can be centralized, the parking lot owner may opt for Amano’s commissioned
management, and the system can be
configured to facilitate various methodsof parking fee payment such as prepaid
transportation IC cards.
Global deployment of parking systems
is also progressing. In the US, the new“OPUS” series is being highly appraisedby its users and orders are growing
steadily. In Europe, orders for their lowcost bar code system the “Xparc” arestrong especially from Asia and Oceania
regions. In Southeast Asia, Amano ismarketing a Japan-made low-end bar
code system.
As a united force, the Amano group willcontinue to strive to expand the business by accelerating global deployment.

Environmental Systems
Launched a new mist collector!
Capturing the demand of companies
expanding overseas
Amid the strong sales of standard andlarge-scale systems, in November 2014
we launched a new oil mist collector
the “EM-8eII”. Compared to our conventional machines the “EM8eII” is morecompact measuring approximately two
thirds in size and weight. It has improved
suction power while consuming only
half the electricity. In addition we haveachieved greater stability and safety byadopting stain-resistant electrodes. We
plan to market this product towards
domestic and overseas manufacturers ofautomotive parts, large users of metal
molds, and factories involved with metal
works.
The destination of domestic manufacturers advancing overseas is expanding
from China & Southeast Asia to North& Latin America. In order to ensure ourinvolvement in such overseas projects,
we will increase the number of overseas offices with engineering capabilities
and we will also strive to improve costcompetitiveness by reinforcing local

procurement and assembly. In particular,
as we expect more Japanese companies
to set up operations in Mexico, we arestrengthening the ties between domestic
Sales & Marketing Units, Business Units
and the local subsidiaries and at thesame time investigations are underway
to possibly set up our own presence
there.

Electric oil mist collector “EM-8eII”

Clean Systems
Expanding the business scale!
Cleaning robots and wooden floor
sanding equipment
In Japan, the tendency to reduce cleaning costs continues amid aging veteranworkers and a growing percentage of
inexperienced workers. This is elevating the need for robotic cleaners, whichenables efficiency and quality improvements at the same time. The “SE-500iX”
is a robotic cleaner launched in March2014 and it is being adopted by customers such as large commercial facilities
and airports who pursue low cost aesthetic maintenance. In November 2014,
the “SE-500iX” was exhibited at an
exposition for facility management andcleaning service specialists, the “Clean
EXPO 2014” which was held for the
first time in Japan. The robotic cleaner
attracted much attention. We aim to
expand this robotic cleaner market
through functional enhancements andnew product launches.
Overseas, in North America, the cleaning business domain was expanded withthe addition of the new wooden floor
sanding business. The new business performed well and contributed greatly tothe consolidated results of clean systems
business. We will seek further expansion
by broadening the product line and offer
packaged deals which combine chemical
products.

Amano’s booth at the Clean EXPO 201411

Amano USA Holdings, Inc.
Amano Cincinnati, Inc.
The ACI time division is expanding its Time
Guardian terminal offering by integrating a
new line of (TIS) time information systems
terminals with its Time Guardian software
suite. These new terminals will incorporate
the latest functionality and features whencommunicating with our software. The terminals will be available in a variety of reader
configurations such as MAG, Barcode andProximity. All units offer communications
via direct connect or Ethernet. Packaged
together with our Time Guardian software,these new TIS products will be competitively priced and a perfect fit for small to
medium sized business. We plan to offer
these new packages through several
sales channels. The
projected release
date for this newline of TIS products will be 3rd
qtr. 2015.
The next generation Amano side printer is
now in development. The ACI time division
is planning to release the new time clockseries in the coming months. In our effort
to keep up with the changing market, ACI
has developed a new side printer which
incorporates several new features as wellas the best characteristics from our previous side printer (PIX/TCX) series. The newclock utilizes a new processor which allows
for future development. This new timeclock was developed and is being built in
our Ohio factory. The planned release date
for this new time clock series is early 3rd
qtr. 2015.
In our continued effort to improve theprofitability of the ACI time division we areconsolidating and relocating the Time Division Customer Service Department andthe Time Clock Repair Department to the
Ohio Factory. We believe that consolidating these two functions in the factory willallow us to take advantage of having both
our customer facing team and our productproduction team in one location. Our goal
is to improve customer satisfaction. Goingforward all time product related repairs will
be done in the Ohio factory. This allows
us to report issues and resolve problems
quickly.

Accu-Time Systems, Inc.
Accu-Time Systems, Inc. expanded its
product line and began shipping its new
custom design RDT terminal in 2014 to amajor payroll provider. This new terminal
boasts a large LCD display coupled withpowerful computing power incorporated
into a unique modular design. The modular
design facilitates a faster and more flexible
customization of options for user input andverification. Since November of 2014 todate, the company has shipped well over1500 terminals.
On the revenue side, the TimeCom ERP(Enterprise Resource Planning) time clock
integration solution continues to experience a healthy sales growth. The productis well received by enterprise size customers. TimeComcompatibility
with major ERP
packages such as
Workday, SAP or
PeopleSoft andother ERP products, continues to drive global demand andexpansion. The product is installed in theAmericas, EMEA and the APAC regions.
TimeCom is also the first Accu-Time Systems product release that leverages multiyear agreements and a recurring revenue
model.
Additionally, Accu-Time Systems continues
to diversify its revenue sources beyonda core product offering of time and attendance terminals. Professional services
were introduced to augment the TimeCom
product offering. The professional services
include both implementation support andan expanded 24/7 technical support. The
newly formed implementation team’s services were engaged by all of the TimeCom
customers.
Examples of the scope of the services deployed in the Americas include two large
national end-user customers with very
complex implementations. The first being
an outdoor apparel company based in Ventura, California and the second customer is
a San Diego, California based company thatspecializes in delivering flowers, chocolates,
gift baskets, and unique personalized gifts.

Amano McGann, Inc.
General Overview
In 2014 Amano McGann, Inc. (AMI) exceeded both revenue and profit targets
with record sales levels in Q4, driven primarily by the branch services, dealer network, Latin America sales, and Metric onstreet segment, as well as strong revenues
in the West Coast region.

Parking Automation Success
AMI began shipping the new OPUSeries
parking terminals in Q3 of 2014. Both the
AMI distribution channel and the market
have embraced the new technology. As
evident in our FY 2014 results, OPUSeries
addresses todays parking automation needs
with win rates of 36% on the back of thisnew product. In addition, going into FY
2015, OPUSeries represented better than
33% of our total sales pipeline. This is animpressive number with only six months ofproposal development.
What contributed to this success and quickly validated the product was the unique
launch strategy. The OPUSeries Road Showgave each branch office and distributor theopportunity to purchase an OPUS demo kit
consisting of all core products and software.
Demo kits were shipped to each participating office and Amano McGann’s OPUS
Subject Mater Experts hit 26 major cities
providing over 156 live demonstrations of
the new products to over 620 customers.

12This unique approach accomplished several
key objectives: product training for our
100+ member sales team, hands on training for our 300+ member service team andpersonalized face-to-face customer interaction and positive feedback on the new
products. The results speak for themselves.

AMI Expansion
In November of 2014 3M Corporation
announced they had made the decision
to close its Parking Access and Revenue
Control business formally known as Federal
APD. This decision created opportunity for
AMI to expand our distribution channel byadding another key channel partner. Amano
currently has the largest channel to market
in the industry that now includes one of
3M’s largest and most successful dealers,
ITR of Georgia.
In December Amano McGann merged the
Amano Atlanta Branch with ITR’s operations. The newly integrated organization willcontinue to provide the highest level of service and support to its combined customer
base in Georgia and the Southeast.
The new Amano McGann / ITR organizations successfully installed the Classic Centerin December of 2014. The Classic Center,Northeast Georgia’s premier convention
and performing arts facility, boasts over 600
spaces in theirparking deckto accommodate patrons
attending over
200 events
every year.
The new system includes nine lanes ofOPUSeries terminals with barcode FlexScan Readers, three Credit Card Only Payon-Foot Stations, the iParcProfessional
Software Suite, eParcVal Online Web Validations, eFlexPrint Validations and Special
Event System interfaced to a ticket alternative.
This robust system has made a positive
impact for the center which prior to OPUSeries had never used parking automation.
The new system is currently providing theClassic Center with the highest level of automation to improve access to the facility as
well as company revenue, delivering a 100%
cashless solution minimizing overhead costs
associated with cash management, and aquick and convenient way for their customers to pre-purchase parking.

Building a Better TeamThe Amano McGann Dealer Association
was formed this year and includes Amano
McGann’s distribution network as well as
AMI’s Regional Vice Presidents and executives. The groupmeets twice ayear to stay connected, leveragegroup resources,
share best practices, build closer
working relationships between AMI branch
offices and distributors, and help grow ourrespective businesses.
The most recent meeting was held inFlorida in November of 2014. The groupfocused on topics such as risk management,
maintenance agreements, competitor analysis/market activity, an OPUS update anda product/system roadmap for the future.
The next planned meeting is set to takeplace in conjunction with the International
Parking Institute Conference and Trade
Show this coming summer.

Amano Pioneer Eclipse Corporation
In 2014 Amano Pioneer Eclipse Corporation (APEC) grew 57%, continuing a multiyear growth trend that started in 2010. The
majority of APEC’s growth in 2014 wasdriven by the acquisition of American Sanders® which contributed $15M in revenue,
which was 18% above budgeted expectations. Organic growth within APEC’s cleaning business was 8%, highlighted by 18%
growth in the United States, a result driven
by continued improvements in personnel,
increased focus in direct sales, and new
product introductions. APEC’s environmental business, Amano Environmental Americas (AEA), continues to develop a strong
customer base throughout North America.
Through improved distribution and manufacturing efficiencies, AEA realized 36%
growth in machine sales and 157% growth
in machine gross margins in 2014.
New product development continued to
be a driving force in 2014. APEC launchedseveral new chemical products into thecleaning market, including CLS Hard Floor
Cleaner & Maintainer, a daily cleaner that
seals and protects
hard floors such asconcrete, terrazzo,
marble and quarry
tile; EZ-Strip, an extra
strength, low odor
stripper ideal for environments where slow
drying stripping procedures are required;
TritonXLC, a no-rinse disinfectant cleaner
with a neutral pH; and Nova, a high-fragrance disinfectant available in three scents.
Several new models of cleaning machines
were introduced in 2014. Both the 250ST
Orbital Stripper and 225FP line of Floor
Polishers were developed by cost effectively modifying products that wereacquired as part of the American Sanderspurchase. Also, APEC was awarded a multiyear contract to develop and manufacture
private label propane
burnishers for oneof the world’s largest
cleaning equipment
manufacturers. This
private label contract
will result in annual
incremental sales ofapproximately 1,500
propane burnishers,
beginning in 2015.
Since the acquisition of American Sanders,
APEC has focused on solidifying and building the relationship with our largest customer, a US based chain of home improvement
stores. Buyers from this important customer

visited and toured the APEC plant in Juneof 2014. By the time of the June meetingin Sparta, NC, the APEC sales team had
visited almost all of the customer’s store
locations and presented an analysis on findings which the customer took action on, resulting in increased revenue and improved
customer satisfaction. Since then, APEC hascontinued to make product improvements
on machines sold to this customer and
APEC was recently
awarded a test
launch of two floor
care chemicals andthe 200BU Electric
Burnisher in 30of the customer’s
stores for 2015.
Other notable events, which drove sales
over the past year, included several successful trade shows, including the NWFA
show, ISSA/INTERCLEAN show, Worldof Concrete and rental shows for Ace,
TruServ, Do It Best and The Home Depot.
In September of 2014 APEC hosted its first
open house in Sparta, NC. Customers andprospects from Virginia, North Carolina,
South Carolina, Georgia and Florida cameand attended workshops and training sessions.

Amano Europe Holdings, N.V.
Amano Europe, N.V.
IIn 2014 Amano Europe continued to growboth revenue and profit in the main business segments; parking solutions and timeand attendance.
The X-Parc parking solution, our global parking
solution, has been installedsuccessfully in 30 different
countries, including Malaysia,
Australia, Hong Kong, India,
Middle East and several
African countries. With XParc Amano Europe is able
to offer a robust, flexible
and network centric solution
based on barcode tickets
that suits global market needs. Ease of integration, low cost of ownership and fast time
to market are three of the several greatand innovative benefits this system offers.
With X-Parc Amano Europe is positioning
itself as a solution and service provider inthe global mobility market. We work on afurther expansion into other major markets.

Astrow Cloud, the next generation of theproven T&A software solution for small andmedium sized businesses with an installedbase of more than 5.000 customers in Europe is getting widely accepted in several
European countries. Today, more than 100
companies are using the cloud services.
iTR-100 is now sold all over Europe

13

through different
channels. iTR-100
stretches on the
typical time recorder functionality
by offering new andcompelling cloudservices, like online support, payroll and reporting. Ultimately, iTr-100 is also the entry
point for a further and seamless upgrade
towards Astrow Cloud.

Amano Time & Parking Spain, S.A.
To satisfy our customers, we should be agood partner and adviser for them. We
believe that our attitude based on that idea
must bring BENEFIT not only to our customers but also to us.
One project acquired in 2014 convinced us
again of the importance of that idea. It wasa new parking machines installation project
for a middle-sized store belonging to aregional supermarket chain. Our sales andtechnical staff visited the customer several
times to avoid any kind of misunderstandingon their requirements as well as to propose
the most appropriate functions and lay-out
of machines with the purpose of increasing efficiency and reducing cost. Even after
the installation of our X-Parc machines, ourtechnicians, talking with their software company, arranged the functions in order thatthe both systems could work together. The
X-Parc machines
and their functions
are appreciated by
the customer, who
trusts very much thequality of AMANO
products and employees.
This project really represents our style ofbusiness here in Spain. Being convinced ofit, we will continue seeking for BENEFIT tothe customers.

Horoquatz
During 2014 Horoquartz observed steady
growth of its activities in the major businesslines. More specifically an increasing demandhas been noticed for solutions that render
optimization, like advanced scheduling software. With HQ Activity, major successes
have been achieved in the retail and services field. This trend confirms that customers are now focusing more on operational
efficiency improvement than on HR administration performance. Similar success has
been booked with HQ Resources, a newscheduling solution that deals specificallywith continuity constraints for municipalities
and local authorities. All Horoquartz solutions have been deployed on the Microsoft
Azure cloud platform as well in order toimprove flexibility and reduce the cost for
end-users. The P2S security solution has
experienced steady
growth in 2014 andas it represents now
25% of the turnover,it can be seen as a
new core businessfor Horoquartz. Horoquartz also entered in
new partnership with Business & Decision, aleading company in the field business intelligence in order to provide our customers
with comprehensive solutions in this field.
Horoquartz was a major sponsor of theevent “The Victories of Human Capital”,
held in Paris on 8 December 2014 where
the award the ‘HR Director of the year’ wasgiven. This event brought together 400 HR
Directors from all the major French companies. Horoquartz remains number one for
workforce management solutions in Francewith a market share of more than 20%.

Amano Time & Air Singapore Pte. Ltd.
We “Amano Time & Air Singapore Pte Ltd–Philippine Branch” stared to operate newbranch office on March 1, 2015. Our office is located south part of Metro Manila
in Muntinlupa City.
Philippine consists of
7,107 islands. With apopulation of about
100 million people, thePhilippines is the seventh-most populated
country in Asia and the12th most populated
country in the world.
Also, Philippine is one of most raisingcountry in South East Asia and has biggest
market share of Business Process Outsourcing (BPO) in the world. New, we are challenging to open the new market with new
Filipino Amano family. We believe that weare catching up the market demand and areable to grow up with Philippines.

Amano Malaysia Sdn Bhd.
AM had recently been appointed as thepreferred parking manager for the prestigious neighborhood shopping mall; Citta
Mall of 1,200 bays spread over both groundand lower ground floor. It was a competitive tendering exercise involving all majorestablished parking operators in Malaysia.
While most major shopping malls car parkare managed in-house, AM is proud to beappointed to manage the Citta Mall car park
under such market conditions in Malaysia.
Besides providing parking management
services to Citta Mall, AM will provide
maintenance services and supply of tickets/
consumables to the current Amano GT Series.
Being the third car parks for AM in Kuala
Lumpur, we believe we will gain the market
confidence and recognition of AM’s parking
services, and will continue to expand thebusiness to major cities like Johor Bahru andPenang.
For AM, we are currently still the only
company that provides one-stop-service
solutions on Management, Equipment Supply, Maintenance, Customer Service andConsumables Supply. In the highly com-

petitive Malaysia market, Amano brand has
been continuously remained the Top Brand
Choice favored by most owners due to
its reliability, durability and servicing. AM is
also currently the only company representing Amano principal in the market whereas
other competing brands are all represented
by local dealers or third party providers. By
virtue of this presence, the Amano brandhad gained further market confidence andsupport.
One of current major developments in
Malaysia known as MyTown Project had
recently awarded AM for the supply of the
Amano GT Series. Being a retail-led mixed
use development consisting of office, serviced apartments, retails and shopping mall
(IKEA Store) with a total of 6,500 car park
bays (1,810 ready in 2015), Amano brandhad definitely made major quantum leap
over other equipment brands. With thepossibility of the client engaging AM for the
car park management services, this will potentially provide the car park managementbusiness a major thrust into the market.
The Xparc system had created few notablemajor success stories. We have been able
to sell this system to the top developer
in Malaysia and importantly, this grouphas been a major supporter of the othermanagement system for many years. We
see this as a major breakthrough, well strategized and supported by both the sales andservice team.
Another key account would be the MRCBGroup, a top GLC (government-linked
company) in town having its parking subsidiary; Semasa Parking utilizing the Xparc system. They have been a major contributor
to the system with most of the car parks
installing Xparc and being the major GLC,
we foresee more new sites purchasing thesystem.
The LPRS which was installed and tested
in the internationally recognized KLIA2 Airport car park had gained positive feedback
through improving overall car park security
and client had require further customizations.
The upcoming Touch N Go integration
which is now
nearing completion stage will
provide anotherpush for Amano
brand by reinforcing further its Top
Brand Choice inthe market.

The system will activate the LED lighting at
optimum levels based on the information it
receives, for instance, it will illuminate 20 to
30 meters ahead of the vehicle at an optimum intensity depending on its speed. It is
the most advanced lighting control system
available. By combining this system AKC
has developed a parking lot management
system that can also be used for parking
lot security. As a parking lot management
system, one omni directional camera canmonitor up to 6 bays along with the license
plate numbers of the vehicles parked in the
6 bays. This information can be used toprovide vehicle parking and location guidance. In terms of parking lot security, unlike
the conventional unidirectional cameras,
the omni directional cameras has a wider
scanning range (360 degrees) thereby minimizing the required number of cameras tocover the same
space, which inturn will minimize
the total cost of
the system.
The developmentof this system was
c o m p l e t e d l a s t NS Home Shopping Centeryear and we areproud to announce that we have received
an order for the system early this year.

Amano Korea Corporation

Omni directional camera Omni directional camera Credit card pay station(when vacant)(when full)“Intelligent LED Lighting & Parking Control System utilizing Omni directional
cameras” Delivered!
The Intelligent LED Lighting Control System automatically controls the lighting bydetecting real-time movement of vehicles,
people and the surrounding luminous intensity through Omni directional cameras.

14

Product

Model

Units
Delivered

Remarks

GT8500KD

1

3 Ticket Dispenser

GT2800S

1

4GT8400K2

For exit (lighting
plate integrated
type)
For entry (lighting
plate integrated
type)
Emergency backup
only
Ceiling type

AKC-OC-CB

83

12 Million Pixels

GT7100K

1

1

LPR Device(Single)GT8500K

1

2

LPR Device(Dual)

5
6
7
8
9
10
11

LPR (Sub)
Omni directional
cameraAuto Pay Station(Advance)
Lighting(Parking lot)
Parking Control
ServerParking Control
Computer
Credit Card Pay
StationGate

LED-05640

ATS2000S

1

ATS2000

1

GT6700DCT1

TFK-1630

340W (with dimmer)

Images of the devices delivered

LPR (Single & Dual)

Auto Pay Station

LPR (Ceiling type)• Ordering Party: NS Home Shopping Center• System Configuration: 1 Exit and 1 Entrance• Parking bays: 476
The parking system is linked with the LED
lighting control system and the main components delivered are as follows:
Operational sequence of the system:
1. When a vehicle enters the facility, theLPR device reads the license plate andsends the information to the server.

2. When the sensor (omni directional
camera) detects a vehicle, the LED lights
within a radius of 20m are activated at
maximum illumination (adjustable by setting). The omni directional cameras lightup in green or red to indicate vacant orfull thereby guiding the driver where topark.
3. This particular system controls 476 parking bays with 83 omni directional cameras
which are systematically linked with the
LED lighting control system providing
maximum hospitality “omotenashi” forthe driver.
4. The omni directional cameras are constantly active and the images are recordedon the Network Video Recorder (NVR).
The recorded video can be replayed
anytime on demand. Thus the system
also functions as a security system. The
constant video recording deters crime
and the video images could aid in solving
crimes.

growing delivery track record. AKC will
strive to enhance their ability to develop
unique products that will not only differentiate them from others but will enable AKC
to meet the needs of society and/or evencreate new standards.

Video images from Omni directional cameras

4 Split analytical video images

In developing and delivering this system,
AKC adopted the concept of linking two
state-of-the-art systems in parking and LED
lighting control. Although the system installation is scheduled for late June 2015, thiscomprehensive solution is attracting market
attention.

Parking lot (Omni directional camera, LED lighting)

In Korea, the competition in parking systems
is getting fierce. There are already 10 major
competitors in parking systems alone and
AKC is currently facing eroding margins andincreased difficulties in winning bids. Under
such circumstances, in order to generate
revenues and profit, AKC has recognized
the importance of developing products
which differentiates them from others suchas linking different systems that have different functions.
AKC has already developed an on-street
flapless system and 3-bay camera system
etc which are unique and backed by a15

AMANO Corporation and Subsidiaries

Financial Highlights
For the years ended March 31, 2015 and 2014.
Yen in millions and U.S.dollars in thousands, except per share amounts- See Note 4 to the Consolidated Financial Statements.
Thousands of U.S.dollars(Note 4)

Millions of Yen

2015

2014

2015

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

¥109,837¥102,131$915,314

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

6,794

5,299

56,623

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

¥88.71¥69.19$0.739Cash dividends per common share..............................

38.00

30.00

0.317

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

¥131,560¥122,838$1,096,334

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

50,65345,794422,109

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

92,14883,482

767,906

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

¥23,558¥22,979$196,325

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

4,100

4,087

34,170Parking systems.........................................................

51,81748,808431,816

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

20,63918,157

171,997

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

9,720

8,097

81,006

For the years ended March 31:

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

At March 31:

Sales by product:

Note: U.S.dollar amounts have been translated at the rate of ¥120 = US $1, the rate prevailing on March 31, 2015.
- See Note 4 to the Consolidated Financial Statement.

Net Sales

Net Income

Net Income Per Share(Millions of Yen)

(Millions of Yen)

(Yen)

120,000

8,000

100.00110,000

80.00

90,000

6,000
70.00

80,0005,000

70,00060,000

60.00

4,000

50,000

50.00
40.00

3,000

40,00030.00

30,000

2,000
20.00

20,0001,000

10,000
0

90.00

7,000

100,000

'11

'12

'13

'14

'15

0

10.00

'11

'12

'13

16

'14

'15

0.00

'11

'12

'13

'14

'15

AMANO Corporation and Subsidiaries

Consolidated Balance Sheets
As at March 31, 2015
Thousands of U.S.dollars(Note 4)

Millions of Yen

ASSETS

2015

2014

2015

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

¥35,126¥35,014$292,722

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

1,871

1,658

15,59632,861

28,584

273,844

Current assets:

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

(219)

(265)

(1,832)32,641

28,318272,011

3,273

3,054

27,279Inventories:
Merchandise and finished goods ............................
Work in process ...................................................

680

761

5,675

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

4,661

3,303

38,848Deferred tax assets (Note 18) .....................................

1,507

1,245

12,561Other current assets ..................................................

1,870

1,415

15,587

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

81,63374,771

680,279

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

29,51029,073245,919

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

18,706

18,563

155,891

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

7,549

6,590

62,91355,76654,227464,724

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

(39,334)(37,636)(327,784)

16,432

16,590136,940

7,274

7,247

60,620Property, plant and equipment, at cost:

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

314

406

2,621

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

24,021

24,244200,180

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

4,866

5,128

40,554

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

2,321

2,541

19,342

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

1,553

794

12,945

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

3,538

1,890

29,489Total intangible fixed assets ..................................

12,27910,355102,331(Notes 6 and 16) .......................................................

1,889

1,941

15,745Investments in securities (Note 16) ............................

5,790

4,831

48,254

Intangible fixed assets :Investments and other assets:
Investments in unconsolidated subsidiaries and affiliates

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

1,025

1,054

8,546

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

1,423

2,152

11,866

Other assets (Note 7) ...............................................

3,917

3,892

32,642Less allowance for doubtful accounts .........................

(421)

(406)

(3,509)Total investments and other assets ........................

13,625

13,465

113,545

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

¥131,560¥122,838$1,096,334

17Thousands of U.S.dollars(Note 4)

Millions of Yen

LIABILITIES AND NET ASSETS

2015

2014

2015

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

¥7,125
6,538
328
1,410
1,941
45
2,295
11,29530,980¥6,065
6,320
451
1,364
1,975
–
3,007
9,791
28,976$59,381
54,4892,738
11,755
16,176375
19,12894,129258,170

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

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

2,133
4,158
189
3,412
122
29
331
10,37839,355

16,57420,9601,556
28,176
109
250
2,633
70,259328,429

18,23919,29354,645

18,23919,29349,298151,997
160,776455,377(54)
92,123(52)
86,778(452)
767,698

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

574
(3,481)(812)(3,718)12,856(8,925)(6,854)(2,923)

Minority interests in consolidated subsidiaries ............

375

422

3,131

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

92,148¥131,560

83,482¥122,838

767,906$1,096,334

Net assets (Notes 10 and 11):
Shareholders' equity:
Common stock
Authorized - 185,476,000 shares
Issued:March 31, 2015 and 2014 - 76,657,829 sharesin 2015 and 2014 ..............................................
Capital surplus .....................................................
Retained earnings .................................................
Treasury stock at cost, 66,585 shares in 2015
and 64,808 shares in 2014 ...................................

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

The accompanying notes are an integral part of these statements.

18

AMANO Corporation and Subsidiaries

Consolidated Statement of Income, andConsolidated Statement of Comprehensive Income
For the years ended March 31, 2015

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

Millions of Yen

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

2015

2014

2015

¥109,837
62,221
47,61638,2599,357¥102,131
57,84044,29035,464
8,826$915,314
518,509396,806
318,828
77,978

291
(61)
59
151
7
(61)
(0)
(38)
385
–
(175)
391
10,307

176
(50)
49
147
24
(51)
(3)
(0)
–
25
(80)
235
9,299

2,426
(512)
495
1,261
65
(512)
(2)
(318)
3,212
–
(1,459)3,261
85,897

3,921
(555)
6,941
(146)
¥6,794

4,039
(160)
5,420
(121)
¥5,29932,680(4,626)
57,842(1,219)$56,623

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

Millions of Yen

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

2015

2014

2015

¥6,941¥5,420$57,842

958
2,442
(10)

258
3,880
–

7,987
20,357(84)

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

22

35

191

3,414
¥10,355

4,174¥9,59428,451$86,293

Total comprehensive income attributable to:Shareholders of the Company ....................................
Minority interests ......................................................

¥10,162¥192¥9,417¥177$84,687$1,606

The accompanying notes are an integral part of these statements.

19

AMANO Corporation and Subsidiaries

Consolidated Statement of Changes in Net Assets
For the years ended March 31, 2015
Millions of Yen
Shareholders’ equity
Common stock

Capital surplus

Retained earnings

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

¥18,239¥19,293

18,23919,293¥49,298
1,012
50,310––

Balance at March 31, 2015

¥18,239¥19,293

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

Total shareholders’equity(¥52)¥86,778
1,012(52)
87,791

Treasury stock(2,450)6,794(2)(2,450)
6,794
(2)
–
(9)

4,334

(2)

4,332

¥54,645(¥54)¥92,123(9)

Accumulated other comprehensive income
Minority interests
Net unrealized Foreign currency
Retirement
Total accumulated in consolidated Total net assets
gains (losses) on
translation
benefits liability other comprehensive
subsidiaries
other securities
adjustments
adjustments
income¥574(¥3,481)(¥812)(¥3,718)¥422¥83,4821,012
574(3,481)(812)(3,718)422
84,495

967
967

2,410
2,410

(10)
(10)

3,367
3,367

(46)
(46)

(2,450)
6,794
(2)
–
(9)
3,320
7,653

¥1,542(¥1,070)(¥822)(¥350)¥375¥92,148

Common stockThousands of U.S. dollars (Note 4)
Shareholders’ equity
shareholdCapital surplus Retained earnings Treasury stock Totalers’ equity$160,776$410,819($434)$723,157
8,435
8,435
160,776
419,254(434)
731,592

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

$151,997––

36,123(18)

36,105

Balance at March 31, 2015

$151,997$160,776$455,377($452)$767,698

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

151,997(20,425)(20,425)

56,623(18)(76)

56,623(18)–(76)

Accumulated other comprehensive income
Minority interests
Net unrealized Foreign currency
Retirement
Total accumulated in consolidated Total net assets
gains (losses) on
translation
benefits liability other comprehensive
subsidiaries
other securities
adjustments
adjustments
income$4,791($29,008)($6,770)($30,987)$3,520$695,691
8,435
4,791
(29,008)(6,770)(30,987)
3,520
704,125

8,064
8,064

20,08420,084(84)(84)

28,06428,064

(389)
(389)

(20,425)
56,623(18)–(76)
27,67563,780$12,856($8,925)($6,854)($2,923)$3,131$767,906

20

Millions of Yen
Shareholders’ equity
Common stock

Capital surplus

Retained earnings

Treasury stock

Balance at April 1, 2013
Changes during the year
Dividends from surplus
Net income
Purchase of treasury stock
Retirement of treasury stock
Net changes in items other than shareholders' equity
Total changes during the year

¥18,239¥19,567¥49,385(¥3,719)

Total shareholders’equity¥83,472(3,395)(2)
3,669(1,991)
5,299
(2)
–

–

(274)

(87)

3,667

3,306

Balance at March 31, 2014

¥18,239¥19,293¥49,298(¥52)¥86,778

Balance at April 1, 2013
Changes during the year
Dividends from surplus
Net income
Purchase of treasury stock
Retirement of treasury stock
Net changes in items other than shareholders' equity
Total changes during the year
Balance at March 31, 2014

(1,991)
5,299
(274)

Accumulated other comprehensive income
Minority interests
Net unrealized Foreign currency
Retirement
Total accumulated in consolidated
gains (losses) on
translation
benefits liability other comprehensubsidiaries
other securities
adjustments
adjustments
sive income¥316(¥7,340)¥–(¥7,023)
¥268

Total
net assets¥76,718

258
258

3,859
3,859

(812)
(812)

3,305
3,305

153
153

(1,991)
5,299
(2)
–
3,458
6,764

¥574

(¥3,481)(¥812)(¥3,718)¥422¥83,482

The accompanying notes are an integral part of these statements.

21

AMANO Corporation and Subsidiaries

Consolidated Statements of Cash Flows
For the years ended March 31, 2015
Millions of Yen

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

22

Thousands of U.S.dollars(Note 4)

2015

2014

2015

¥10,307
4,137
765
175
–
(15)
(54)
(291)
(59)
61
(101)
38
(385)
(7)
61
(3,494)(1,007)973
787
11,889
280
(61)
(38)
(4,585)32
7,518¥9,2993,711
668
80(2,724)
2,897
(3)
(176)
(49)
50
30
0
–
(21)
51
(2,089)
217
958
1,002
13,902244(50)(0)(3,084)23
11,035$85,897
34,476
6,380
1,459
–
(131)
(454)
(2,426)
(495)
512
(846)
318
(3,212)(64)
512(29,124)(8,393)8,111
6,564
99,082
2,339
(510)
(318)
(38,210)274
62,658(2,000)2,300(2,238)20(1,738)(56)(7,541)6,299(2,000)2,200(3,225)33(2,250)(306)(5,267)
4,683(16,667)
19,167(18,658)170(14,489)(467)(62,849)
52,493394(2,044)(10)
492(6,519)

–
–
(7)
11
46
(6,081)

3,286(17,037)
(83)
36
773
(54,326)

–
(445)
–
(2)
(1,668)1,622(2,450)(25)(2,969)719(1,250)31,674
102

145
(264)
972
(2)
(1,507)
1,891(1,991)
(24)
(780)
881
5,054
26,587––(3,715)–(18)(13,904)
13,522(20,425)(209)(24,749)
5,995(10,422)
263,955854–¥30,526

32¥31,674–$254,387

AMANO Corporation and Subsidiaries

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

2. Principles of Consolidation(1) Scope of Consolidation
The Company had 26 consolidated
subsidiaries at March 31, 2015. The
accompanying consolidated financial
statements include the accounts of theCompany and those of its subsidiaries
that are controlled by the Company.
Under the control concept, major subsidiaries in which the Company is able
to exercise control over operations areto be fully consolidated. The accountsof the overseas consolidated subsidiar-ies are consolidated using their financial
statements as of their respective fiscal
year end, which falls on December 31,
2014 and necessary adjustments are
made to their financial statements toreflect any significant transactions fromJanuary 1 to March 31, 2015. All significant intercompany balances andtransactions have been eliminated inconsolidation.

(2) Accounting for Investments
in Unconsolidated
Subsidiaries and Affiliates
None of the 4 unconsolidated subsidiaries are accounted for by the equity
method, because the effect of their net
income or losses and retained earnings
on the accompanying consolidated financial statements is immaterial. The
affiliates accounted for by the equity
method are listed below:- Parkinsys Technology Co., Ltd.
- Creo Co., Ltd.

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

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

(3) Property, Plant and Equipment
Property, plant and equipment arestated at cost, less accumulated depreciation. Depreciation is computedon the declining balance method,
based on the estimated useful lives,
except for buildings acquired on orafter April 1, 1998 computed on thestraightline method. The ranges of23

the useful lives of assets are:
Buildings and structures 7-50 years
Machinery and vehicles 7-17 years
Normal repairs and maintenance,
including minor renewals and improvements, are charged to income
as incurred.

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

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

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

which are amortized over the period tomaturity.
Investments of the Company in equity
securities issued by unconsolidated
subsidiaries and affiliates are accounted
for by the equity method. Exceptionally,
investments in certain unconsolidated
subsidiaries and affiliates are stated atcost because the effect of application of
the equity method would be immaterial.
Other securities for which market quotations are available are stated at fairvalue. Net unrealized gains or losses onthese securities are reported as a separate item in the net assets section at a
net-of-tax amount. Other securities forwhich market quotations are unavailable are stated at cost, except as statedin the paragraph below.
In cases where the fair value of held-tomaturity debt securities, equity securities issued by unconsolidated subsidiaries and affiliates, or other securities had
declined significantly and such impairment of the value is not deemed temporary, those securities are written down
to the fair value and the resulting losses
are included in net profit or loss for theperiod.

(7) Foreign Currency Translation
Foreign currency transactions are translated using foreign exchange rates prevailing at the respective transaction
dates. Receivables and payables inforeign currencies are translated at theforeign exchange rates prevailing at therespective balance sheet dates and theresulting transaction gains or losses aretaken into income currently.

(8) Translation of Foreign
Currency Financial
Statements (Accounts ofOverseas Subsidiaries)
Foreign currency denominated statements of overseas consolidated subsidiaries have been translated into
Japanese yen using the method prescribed by the Business Accounting
Deliberation Council of Japan.
All the balance sheet accounts offoreign subsidiaries and affiliates aretranslated at the foreign exchange
rates prevailing at the respective balance sheet dates except for common
stock and capital surplus. On theother 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.

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

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

(11) Retirement Benefits
The Company and some of its subsidiaries recognize accrued pension andseverance costs to employees based on
the actuarial valuation of projected
benefit obligation and plan assets attheir value. The retirement benefit obligation for employees is attributed toeach period by the benefit formula
method. Prior service costs are amortized based on the straight-line method

24

over a period of ten years. Actuarial
gains and losses are amortized basedon the straight-line method over a period of ten years starting from the beginning of the subsequent year.

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

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

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

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

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

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

(18) Accounting Changes
The Company and its domestic subsidiaries adopted Section 35 of “AccountingStandard for Retirement Benefits” (ASBJ
Statement No.26 of May 17, 2012) andthe main clause of Section 67 of “Guidance on Accounting Standard for Retirement Benefits” (ASBJ Guidance No.25
of March 26, 2015) effective from April
1, 2014. As a result, the methods forcalculating the retirement benefit obligation and service cost have been revisedin the following respects: the method for
attributing projected benefits to eachperiod has been changed from thestraight-line method to the benefit formula method, and the method for determining the discount rate has beenchanged to the use of different discountrates reflecting the estimated timing ofeach benefit payment. Under the previous method, the discount rate was determined based on the use of the period
approximate to the expected averageremaining working lives of the employees.
The cumulative effect of changing themethod for calculating the retirement
benefit obligation and service cost wasrecognized by adjusting retained earnings at April 1, 2014, in accordance withthe transitional treatment provided in
Section 37 of Accounting Standard for
Retirement Benefits.
As a result, the liability for retirement
benefits decreased by ¥ 1,571 million ($13,062 thousand) and retained earnings

increased by ¥ 1,012 million ($ 8,414
thousand) at April 1, 2014, and consolidated operating income, income before
income taxes and minority interests forthe year ended March 31, 2015 increasedby ¥ 95 million ($ 789 thousand), respectively. Also, net assets per share at March
31, 2015 increased by ¥ 14.02 ($ 0.116),
and net income per share for the year
ended March 31, 2015 increased by ¥0.80 ($ 0.006).

4. United States Dollar Amounts
The Company maintains its accounting
records in Japanese yen. The U.S. dollar
amounts included in the consolidated
financial statements and notes thereto
represent the arithmetical results oftranslating Japanese yen to U.S. dollars
at a rate of ¥ 120 = US$1, the approximate effective rate of exchange prevailing on March 31, 2015. The inclusionof U.S. dollar amounts is solely forconvenience of readers outside Japanand is not intended to imply that yen
amounts could be converted, realized,
or settled in U.S. dollars at that, or any
other rate.

5. Standards Issued but Not Yet Effective
On September 13, 2013, the ASBJ issued“Revised Accounting Standard for Business Combinations “ (ASBJ Statement
No. 21), “Revised Accounting Standard
for Consolidated Financial Statements”(ASBJ Statement No. 22), “Revised Accounting Standard for Business Divestitures” (ASBJ Statement No.7), “Revised Accounting Standard for Earnings
Per Share” (ASBJ Statement No.2),“Revised Guidance on Accounting Standard for Business Combinations andAccounting Standard for Business Divestitures” (ASBJ Guidance No.10) and“Revised Guidance on AccountingStandard for Earnings Per Share” (ASBJ
Guidance No.4).

(1) Overview
Under these revised accounting standards, the accounting treatment for any
changes in a parent’s ownership interest

25

in a subsidiary when the parent retains
control over the subsidiary and the corresponding accounting for acquisition-related costs were revised. In addition, thepresentation method of net income wasamended, the reference to “minority
interests” was changed to “non-controlling interests,” and transitional provisions for these accounting standards
were also defined.

(2) Scheduled date of adoption
The Company expects to adopt theserevised accounting standards and guidance from the beginning of the fiscal year
ending March 31, 2016.

(3) Impact of adopting revised
accounting standards andguidance
The Company is currently evaluating theeffect of adopting these revised standards
on its consolidated financial statements.
On March 26, 2015, the ASBJ also issued“Revised Practical Solution on Unification of Accounting Policies Applied toForeign Subsidiaries for Consolidated
Financial Statements” (PITF No.18).

(1) Overview
The revision was made in order to reflect
the change in the accounting treatmentof goodwill under US GAAP in January
2014, reflect the revision of AccountingStandard for Consolidated Financial
Statements (ASBJ Statement No.22) in
September 2013, and clarify necessary
adjustments related to retirement benefits.

(2) Scheduled date of adoption
The Company expects to adopt the revised practical solution from the beginning of the fiscal year ending March 31,
2016.

(3) Impact of adopting revised
accounting standards andguidance
The Company is currently evaluating theeffect of adopting this revised practicalsolution on its consolidated financial
statements.

6. Investments in Unconsolidated Subsidiaries and Affiliates
Among investments in securities, the amount in aggregate corresponding to unconsolidated subsidiaries and affiliates at
March 31, 2015 and 2014 is as follows:							Millions of Yen

Investments in equity securities
Others2015¥1,750138

Thousands of U.S.dollars ( Note 4 )2014¥1,802138

2015$14,583
1,150

7. Assets Pledged as Collateral and Obligations Secured by Collateral
As at March 31, 2015 and 2014, the following assets were pledged as collateral:
Millions of Yen

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

2015
¥65
35
2

Thousands of U.S.dollars ( Note 4 )

2014
–
¥33
–

2015
$542
292
17

As at March 31, 2015 and 2014, such collateral secured the following obligations:
Millions of Yen

Short-term bank loans
Long-term loans payable

2015
¥16
5
¥21

Thousands of U.S.dollars ( Note 4 )

2014
¥19
19
¥39

2015
$133
42
$175

8. Selling, General and Administrative Expenses
Selling, general and administrative expenses during the years ended March 31, 2015 and 2014 principally include:
Millions of Yen

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

2015¥1,37145
1,232
16,795(30)

2014¥1,360–1,145
15,659(66)

Thousands of U.S.dollars ( Note 4 )2015$11,425
375
10,267
139,958(250)

9. Research and Development Costs
Research and development costs included in selling, general and administrative expenses and manufacturing cost for the years
ended March 31, 2015 and 2014 are as follows:
Millions of Yen

Research and development costs

2015¥1,4652014¥1,26926

Thousands of U.S.dollars ( Note 4 )2015$12,20810. Changes in Shareholders’ Equity
Changes in “Shares issued and outstanding” and “Shares of treasury stock” during the period from April 1, 2014 to March 31,
2015 are as follows:(1) Shares issued and outstanding
Share type
Common stock (shares)

As of April 1, 2014
76,657,829

Increase

Decrease–(2) Shares of treasury stock
Share type
As of April 1, 2014
Increase
Common stock (shares)
64,808
1,777(Reason of change)
The increase in the number of shares is due to the purchases of shares less than one unit.

Decrease–

As of March 31, 2015
76,657,829–

As of March 31, 2015
66,585

Changes in “Shares issued and outstanding” and “Shares of treasury stock” during the period from April 1, 2013 to March 31, 2014 are as follows:(1) Shares issued and outstanding
Share type
As of April 1, 2013
Increase
Decrease
As of March 31, 2014
Common stock (shares)
81,257,829–
4,600,000
76,657,829(Reason of change)
The decrease in the number of shares is due to the retirement of treasury stock.
(2) Shares of treasury stock
Share type
As of April 1, 2013
Increase
Common stock (shares)
4,662,695
2,113(Reason of change)
The increase in the number of shares is due to the purchases of shares less than one unit.
The decrease in the number of shares is due to the retirement of treasury stock.

Decrease
4,600,000

As of March 31, 2014
64,808

11. Dividends
Information on dividends for the fiscal year ended March 31, 2015 is as follows:(1) Dividends paid
Resolution

Share type

Ordinary general meeting of shareholders, Common stock
June 27, 2014
Board of directors meeting,Common stock
November 5, 2014

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

Effective date

¥1,302$10,851¥17$0.142

March 31, 2014 June 30, 2014

¥1,148$9,574¥15$0.125September 30,
2014

December 2,
2014(2) Dividends for which the date of record falls in the fiscal year under review, but the effective date is after the end of the fiscal year.
Date of
Dividend Total dividend Total dividend Dividend per share Dividend per share
Resolution
Share type
Effective datefunding(Yen)(U.S.dollars)(Millions of Yen) (Thousands of U.S.dollars)recordOrdinary general meeting of shareholders,CommonRetained¥1,761$14,675¥23$0.192
March 31, 2015 June 29, 2015
June 26, 2015stock
earnings
Information for dividends for the fiscal year ended March 31, 2014 is as follows:(1) Dividends paid
Total dividend
Resolution
Share type(Millions of Yen)
Ordinary general meeting of shareholders,Common stock¥995
June 27, 2013
Board of directors meeting,Common stock¥995
November 6, 2013

Dividend per share(Yen)

Date of record¥13

March 31, 2013

June 28, 2013¥13

September 30, 2013

December 3, 2013

(2) Dividends for which the date of record falls in the fiscal year under review, but the effective date is after the end of the fiscal year.
Total dividend Dividend per share
Dividend
Resolution
Share type
Date of record
funding(Yen)(Millions of Yen)
Ordinary general meeting of shareholders, Common stock Retained earnings¥1,302¥17
March 31, 2014
June 27, 201427

Effective date

Effective dateJune 30, 201412. Cash and Cash Equivalents
Reconciliations of cash and cash equivalents to the amounts shown in the consolidated balance sheet as at March 31, 2015 and 2014 are as follows:
Thousands of U.S.dollars( Note 4 )2015$292,722
15,592
308,317(42,250)(11,675)$254,387

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

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

2014¥35,014
1,658
36,672(3,690)(1,307)¥31,674

For the year ended March 31, 2015, the carrying value at the time of sale of the assets and liabilities of the former subsidiary, Scopus-Omnibadges, S.A.S., which
was deconsolidated as a result of its sale, was as follows:
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities¥ 420 million¥ 188 million¥ 608 million¥ 124 million¥ 34 million¥ 158 million($ 3,500 thousand)($ 1,567 thousand)($ 5,067 thousand)($ 1,033 thousand)($ 283 thousand)($ 1,317 thousand)(Supplemental disclosure of non-cash transactions)
The significant non-cash transactions for the years ended March 31, 2015 and 2014 are as follows:
Thousands of U.S.dollars( Note 4 )2015$9,30814,225

Millions of Yen
2015¥1,117
1,707

Leased assets
Lease obligations

2014¥1,5692,002

13. Impairment Loss on Fixed Assets
Impairment loss on fixed assets for the years ended March 31, 2015 and 2014 is summarized as follows:
Millions of Yen

Location

Purpose of use

Category

Amano Corporation (Japan)

Idle assets
Idle assets
Business use
Business use

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

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

2015
¥155
0
–
18
¥175

2014
–
–
¥80
–
¥80

Thousands of U.S.dollars( Note 4 )2015$1,2926–
150$1,459

Method to Group Assets:
The Company and its subsidiaries group assets according to minimum units that generate cash flows essentially independent from the cash flows of other assets or groups of assets.
Recognition of Impairment Losses:
In the year ended March 31, 2014, the total amount of projected future cash flows generated from the asset group of Amano Cincinnati, Inc. fell below thebook values. As a result, the book values of these assets were reduced to the recoverable amount, and the reduction was recognized as impairment losses.
In the year ended March 31, 2015, certain idle assets related to the manufacturing integration of parking management equipment in Amano Corporation were identified. In
addition, the total amount of projected future cash flows from the business-use assets of Accu-Time Systems, Inc. fell below the book value. As a result, the book values of theseassets were reduced to the recoverable amounts, and the reductions were recognized as impairment losses based on US-GAAP.
Calculation of Recoverable Amount:In the year ended March 31, 2014, the recoverable amount for the said assets is reasonably estimated based on the net selling price, such as real estate appraisal value.
In the year ended March 31, 2015, the recoverable amount for the idle assets of Amano Corporation is reasonably estimated based on the value in use.
Future cash flows were determined to be zero.
The recoverable amount for the business-use assets of Accu-Time Systems, Inc. is reasonably estimated based on the value in use.
The future cash flows are calculated using a discount rate of 16.0 %.

28

14. Other Comprehensive Income
The following table presents reclassification adjustments and tax effects allocated to each component of other comprehensive
income for the years ended March 31, 2015 and 2014:2015¥1,293
–
1,293
(335)
958

2014
¥360
–
360
(102)
258

Thousands of U.S.dollars( Note 4 )2015$10,775–
10,775(2,792)
7,987

2,494
(51)
2,442
–
2,442

3,880
–
3,880
–
3,880

20,783(425)
20,357–
20,357

(108)
157
48
(58)
(10)

–
–
–
–
–

(900)
1,308
400
(483)
(84)

22
¥3,41435¥4,174

191$28,451

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

15. Lease Commitments(1) Lessees’ accounting									Minimum future lease payments under operating leases subsequent to March 31, 2015 and 2014 for non-cancelable operating leases are summarized as follows:
Millions of Yen
Due within one year
Due over one year
Total

2015
¥79
585
¥664

2014
¥107
661
¥769

Thousands of U.S.dollars ( Note 4 )
2015
$658
4,875
$5,533(2) Lessors’ accounting									Minimum future lease income under operating leases subsequent to March 31, 2015 and 2014 for non-cancelable operating leases is summarized as follows:
Millions of Yen
Due within one year
Due over one year
Total

2015
¥99
905
¥1,004

2014
¥99
1,004
¥1,10429

Thousands of U.S.dollars ( Note 4 )
2015
$825
7,542
$8,367

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

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

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

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

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

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

Estimated fair value of financial instruments
Differences between carrying value and estimated fair value as of March 31, 2015 and 2014 are as follows:
Financial instruments whose fair values are difficult to estimate are not stated in the following table; refer to (* 2).

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

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

Carrying
value¥35,01428,584
1,300
1,424
4,812
¥71,135¥6,065
6,320¥12,386

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

(¥1)
(480)
–
(¥482)–––

Millions of Yen
2014
Estimated
Difference
fair value
in amounts¥35,014–28,584
–
1,296
880
4,812
¥70,588¥6,065
6,320¥12,386

30

(¥3)
(543)
–
(¥547)–––

Thousands of U.S.dollars ( Note 4 )2015
Carrying
Estimated
Difference
value
fair value
in amounts$292,722$292,722–
273,844273,844–
11,25012,26749,450$639,533$59,381
54,489$113,867

11,233
8,258
49,450$635,517$59,381
54,489$113,867($8)(4,000)–($4,017)–––

(NOTES)(* 1): Methods to determine the estimated fair value of financial instruments and other matters related to securities and derivative transactions.
Assets:(1) Cash and bank deposits, and (2) Notes and accounts receivable:
Since these items are settled in a short period of time, their carrying value approximates fair value.
(3) Marketable securities and investments in securities:
Since negotiable certificate of deposits are settled in a short period of time, their carrying values approximate fair value. The fair value of the other stocks isbased on quoted market prices. The fair value of debt securities is based on either quoted market prices or prices provided by the financial institutions making markets in these securities. For information on securities classified by holding purpose, please refer to (*5) Held-to-maturity and other securities withreadily determinable fair value as at March 31, 2015 and 2014.
Liabilities:(4) Trade notes and accounts payable, and (5) Electronically recorded monetary claims:
Since these items are settled in a short period of time, their carrying value approximates fair value.

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

2015
¥655

2014
¥756

Thousands of U.S.dollars ( Note 4 )2015$5,458The unlisted securities as stated above are not included in (3) Marketable securities and investments in securities because it is difficult to estimate the fair value
based on the quoted market prices in active markets.

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

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

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

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

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

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

Due
within 1 year
¥35,01428,5841,000
300¥64,898

Millions of Yen
2014
Due after 1 year
Due after 5 years
but within 5 years
but within 10 years
–
–
–
–
¥300
400
¥700

Due
within 1 year
$292,722
273,844
9,167
2,500$578,225–––

Thousands of U.S.dollars ( Note 4 )2015
Due after 1 year
Due after 5 years
but within 5 years
but within 10 years––––$2,083833$2,917

31

–
–
–

–
–
–

Due
after 10 years
–
–
–
–
–

Due
after 10 years
–
–
–
–
–

Due
after 10 years
–
–
–
–
–

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

Due within 1 year The second year–
¥1,282¥1,4101,195¥1,410¥2,478Millions of Yen
2015
The third year The fourth year
¥66
¥500
930
668
¥997
¥1,168The fifth year
¥31
307
¥339

Thereafter
¥107
279
¥386

Millions of Yen

2014
Long-term loans payable
Lease obligations
Total

Due within 1 year The second year–¥296
¥1,364
1,147¥1,364¥1,444

The third year
¥1,130924¥2,055

The fourth year
¥69
657
¥726

The fifth year
¥500
395
¥895

Thereafter
¥136
287
¥423

Long-term loans payable
Lease obligations
Total

Thousands of U.S.dollars ( Note 4 )2015
Due within 1 year The second year The third year The fourth year
The fifth year–
$10,683$550$4,167$258$11,755
9,958
7,750
5,567
2,558
$11,755$20,650$8,308$9,733$2,825

Thereafter
$892
2,325
$3,217(*5) Held-to-maturity and other securities with readily determinable fair value as at March 31, 2015 and 2014 are as follows:
Millions of Yen
2015

Held-to-maturity

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

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

Fair value

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

Carrying value

Acquisition
cost¥5,064685
5,749

Thousands of U.S.dollars ( Note 4 )2015
Unrealized
Carrying value
Fair value
gains (losses)$11,250$11,233($8)

Unrealized
gains (losses)

Carrying value

Acquisition
cost

Unrealized
gains (losses)¥2,975679
3,654¥2,0896
2,095$42,200
5,708
47,908$24,792
5,658
30,450$17,40850
17,458–184
184¥5,934–185
185¥3,840–(1)(1)¥2,094

–
1,533
1,533
$49,450

–
1,542
1,542
$32,000–(8)(8)$17,450

Carrying
value¥1,300Millions of Yen
2014
Fair
value
¥1,296

Unrealized
gains (losses)(¥3)

Carrying
value

Acquisition
cost

Unrealized
gains (losses)¥2,260574
2,834¥1,396
559
1,955

¥864
15
879

1,495
481
1,977
¥4,812

1,572
483
2,056
¥4,011

(76)
(1)
(78)
¥800

32

17. Retirement Benefits
Outline of the retirement benefit plans adopted(1) Defined benefit corporate pension scheme: From March 1, 2009, the Company adopted a defined benefit corporate pension scheme as part of its retirement benefit plan.
(2) Defined contribution pension scheme: From March 1, 2009, the Company adopted a defined contribution pension scheme as part of its retirement benefit plan.
(3) Employees’ pension fund: Since April 1, 1980, the Company has used an multi-employer contributory funded pension plan as a supplement to its existing
retirement benefit scheme.
In addition, certain subsidiaries have lump-sum payment plans and a defined benefit corporate pension plan. They calculate the retirement benefit expenses, andassets and liabilities for retirement benefits by means of a simplified method.
Multi-employer scheme
The required contributions for the employees’ pension fund system, which is a multi-employer pension scheme that is accounted for in the same manner as adefined contribution plan, were ¥ 550 million and ¥ 529 million in the years ended March 31, 2015 and 2014, respectively.
(1) Most recent funded status of the multi-employer plan

As of March
31, 2014¥60,068

As of March
31, 2013¥58,017

Thousands of U.S.dollars( Note 4 )As of March
31, 2014$500,567

75,422(¥15,354)

74,004(¥15,987)

628,517($127,950)

Millions of Yen

Amount of pension assets
Total of amount of pension obligations based onamount of pension financing calculations in thescheme and minimum reserve amount (Note)
Net amount

Note : In the previous year, the item “amount of pension obligations based on amount of pension financing calculations in the scheme” was presented separately.
(2) Amount paid by the Company as a percentage of contributions to the multi-employer plan
For the year ended March 31, 2013:
For the year ended March 31, 2014:

21.9%
22.6%

(3) Supplemental information
The net amount in (1) above was mainly due to a prior service obligation in pension financing (As of March 31, 2013: ¥ 9,509 million; As of
March 31, 2014: ¥ 9,040 million). The method of amortizing the prior service obligation in this plan is to evenly amortize the principal and interest over a period of 20 years, and special contributions of ¥ 185 million and ¥ 179 million were expensed in the Company’s consolidated financial
statements in the years ended March 31, 2015 and 2014, respectively. The percentage of the Company’s contribution in (2) above does not match
the percentage of its actual pension obligation.
The changes in the retirement benefit obligation for the years ended March 31, 2015 and 2014 are as follows:
Millions of Yen
Balance at the beginning of the year
Cumulative effect of change in accounting principle
Restated balance at the beginning of the year
Service cost
Interest cost
Actuarial gain
Retirement benefits paid
Prior service cost
Other
Balance at the end of the year2015
¥11,834(1,571)
10,263
749
93
397
(495)
–
(9)
¥10,999

2014¥11,091–
11,091
626
174
489
(567)
(12)
32
¥11,834

Thousands of U.S.dollars( Note 4 )2015$98,617(13,092)
85,525
6,242
775
3,308
(4,125)–(75)$91,658

The changes in plan assets for the years ended March 31, 2015 and 2014 are as follows:
Millions of Yen
Balance at the beginning of the year
Expected return on plan assets
Actuarial gainContributions by the Company
Retirement benefits paid
Other
Balance at the end of the year2015
¥7,876
196
283
758
(440)
0
¥8,67533

2014¥7,586
189
80
541
(524)
2
¥7,876

Thousands of U.S.dollars( Note 4 )2015$65,633
1,633
2,358
6,317
(3,667)0$72,292

The following table sets forth the funded status of the plans and the amounts recognized in the consolidated balance sheets as of March 31, 2015
and 2014 for the Company’s and the consolidated subsidiaries’ defined benefits plans:
Thousands of U.S.dollars
Millions of Yen( Note 4 )
2015
2014
2015
Funded retirement benefit obligation¥10,880¥11,716$90,667(8,675)(7,876)(72,292)
Plan assets at fair value
2,204
3,839
18,367
119
118
992
Unfunded retirement benefit obligation
Net liability for retirement benefits in the balance sheet
2,324
3,958
19,367
Liability for retirement benefits
Asset for retirement benefits
Net liability for retirement benefits in the balance sheet

2,324–¥2,324

19,367–$19,367

3,958–¥3,958The components of retirement benefit expense for the years ended March 31, 2015 and 2014 are as follows:
Millions of Yen
2015
¥749
93
(196)
166
(3)
¥808

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

2014
¥626
174
(189)
184
(16)
¥780

Thousands of U.S.dollars( Note 4 )2015$6,242775(1,633)
1,383(25)$6,733The components of retirement benefits liability adjustments included in other comprehensive income (before tax effect) for the years ended March
31, 2015 and 2014 are as follows:
Thousands of U.S.dollars
Millions of Yen( Note 4 )
2015
2014
2015
Prior service cost
(¥3)
–
($25)
52
–
433
Actuarial gain
Total
¥48
–
$400
The components of retirement benefits liability adjustments included in accumulated other comprehensive income (before tax effect) as of March
31, 2015 and 2014 are as follows:
Thousands of U.S.dollars
Millions of Yen( Note 4 )
2015
2014
2015
Unrecognized prior service cost
¥14
¥17
$117
(1,226)(1,278)(10,217)
Unrecognized actuarial loss
Total(¥1,212)(¥1,261)($10,100)
The fair value of plan assets, by major category, as a percentage of total plan assets as of March 31, 2015 and 2014 are as follows:
Millions of Yen
2015
2014
9%
9%
77%
77%
12%
12%
2%
2%
100%
100%

General accounts
Bonds
StocksOther
Total

The expected return on plan assets has been estimated based on the anticipated allocation to each asset class and the expected long-term returns
on assets held in each category.
The assumptions used in accounting for the above plans were as follows:**They are calculated by the weighted average method.
2015
1.0%
2.5%
5.1%

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

34

2014
1.6%
2.5%
5.1%

For defined benefit plans to which the simplified method is applied, the changes in the retirement benefit obligation for the years ended March 31,
2015 and 2014 are as follows:
Millions of Yen
2015
¥126
33
(28)
(23)
0
¥109

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

2014
¥142
21
(14)
(22)
0
¥126

Thousands of U.S.dollars( Note 4 )2015$1,050
275
(233)
(192)
0
$908

The following table sets forth the funded status of the plans and the amounts recognized in the consolidated balance sheet as of March 31, 2015
and 2014 for the Company’s and the consolidated subsidiaries’ defined benefits plans:

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

2015
¥158
(193)
(35)
144
109

2014
¥137
(166)
(28)
155
126

Thousands of U.S.dollars( Note 4 )2015$1,317(1,608)
(292)
1,200
908

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

191
(81)
¥109

200
(73)
¥126

1,592
(675)
$908

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

Retirement benefit expenses calculated using the simplified method for the years ended March 31, 2015 and 2014 are as follows:
Millions of Yen
2015
¥33

Retirement benefit expenses

2014
¥21

Thousands of U.S.dollars( Note 4 )
2015
$275

Contributions to defined contribution plans of the Company and its consolidated subsidiaries for the years ended March 31, 2015 and 2014 are as follows:
Millions of Yen
2015
¥357

Contributions to defined contribution plans

35

2014
¥335

Thousands of U.S.dollars( Note 4 )2015$2,975

18. Income Taxes
Deferred tax assets and liabilities (both current and non-current) as at March 31, 2015 and 2014 consisted of the following elements:
Millions of Yen

Thousands of U.S.dollars(Note 4)

2015

2014

2015

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

¥122
691
57
778
1,227
311
106
645
1,207
(1,524)¥3,624

¥181
731
95
1,445
1,173
599
128
641
935
(2,175)¥3,756$1,017
5,758
475
6,483
10,225
2,592
883
5,375
10,058(12,700)$30,200

Deferred tax liabilities:
Reserve for advanced depreciation of building
Acquired intangible assets
Unrealized loss on other securities
OthersTotal deferred tax liabilities
Net deferred tax assets

(12)
(19)
(559)
(115)
(706)
¥2,918

(14)
(66)
(223)
(176)
(481)
¥3,275(100)(158)(4,658)(958)(5,883)$24,317

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

2015
35.6%

2014
38.0%

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

0.4
(3.7)
0.9
2.2
3.4
0.0
(0.5)
0.8
0.8
(1.5)
(0.2)
1.1
41.7%

The “Act for Partial Amendment of the Income Tax Act, etc.” (Act No. 9 of 2015) and the “Act for Partial Amendment of the Local Tax Act, etc.” (Act No.2 of2015) were promulgated on March 31, 2015. As a result, the effective statutory tax rate used to measure the Company’s deferred tax assets and liabilities waschanged from 35.6% to 33.0% and 32.2% for the temporary differences expected to be realized or settled in the year beginning April 1, 2015 and for the temporary differences expected to be realized or settled from April 1, 2016, respectively. The effect of the announced reduction of the effective statutory tax rate wasto decrease deferred tax assets, after offsetting deferred tax liabilities, by ¥ 24 million ($ 200 thousand), increase deferred income tax expense by ¥ 125 million ($1,041 thousand) and unrealized gain on other securities by ¥ 59 million ($ 491 thousand) and decrease retirement benefits liability adjustments by ¥ 41 million ($341 thousand) as of and for the year ended March 31, 2015.

36

19. Business Combinations and Divestitures
Business Divestitures(1) Outline of business divestiture
A. Name of acquiring company:
SCOPUS FINANCE S.A.S
B. Divested business:
Manufacturing and selling various cards
C. Reasons for business divestiture:
Although the Group is pursuing the development of the time information system business centered on the consolidated subsidiary Horoquartz, S.A. in Europe, for the card business of Scopus-Omnibadges, S.A.S. the outlook for
future growth is unclear. In addition, in terms of core business of Horoquartz, S.A., the divested business had little
relevance. Therefore, the Company decided to sell all of the shares of Scopus-Omnibadges, S.A.S. held through theEuropean holding company Horosmart, S.A.
D. Date of business divestiture:
February 3, 2015
E. Legal form of transaction:
Business transfer due to the sale of shares(2) Outline of accounting treatment implemented
A. Gain on sale of shares of consolidated subsidiary:¥ 385 million ($ 3,212 thousand)
B. Carrying values of the assets and liabilities transferred in the business divestiture were as follows:
Current assets¥ 420 million($ 3,500 thousand)Non-current assets¥ 188 million($ 1,567 thousand)Total assets¥ 608 million($ 5,067 thousand)Current liabilities¥ 124 million($ 1,033 thousand)Non-current liabilities¥ 34 million($ 283 thousand)Total liabilities¥ 158 million($ 1,317 thousand)(3) Accounting treatment:
The difference between the acquision price and consolidated carrying value of Scopus-Omnibadges, S.A.S. is recorded asgain on sale of shares of consolidated subsidiaries, which is included in other gain, net in the consolidated statement ofincome for the year ended March 31, 2015.
(4) Reportable segment in which the transferred business was included:
Time information system business(5) E stimated operating results of transferred business until the date of business divestiture reported in the consolidated
statement of income for the year ended March 31, 2015.
Net sales¥ 983 million($ 8,192 thousand)Operating income¥ 225 million($ 1,875 thousand)37

20. Segment Information
The reportable segments of the Company are components for which discrete financial information is available and whose operating results are regularly reviewed by the Executive Committee to make decisions about resource allocation and to assess performance.
The reportable segments are as follows:
1. Time information system business
2. Environment system business(1) Sales, profits or losses, assets and other items by reportable segments
Millions of Yen
2015
Reportable segments
Time information Environment
Total
system business system businessNet sales:
Sales to third parties
Intersegment sales and transfers
		TotalSegment profit or loss
Segment assets
Depreciation and amortization
Impairment loss for fixed assets
Investment in equity-method affiliates
Increase in tangible and intangible fixed assets¥79,477–
79,477
8,961
60,217
3,203
175
1,695
5,711

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

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

Adjustments/
Eliminations

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

Adjustments/
Eliminations

Consolidated–––(2,864)44,493421––
133¥102,131–
102,1318,826
122,838
3,711
80
1,646
5,915

Millions of Yen
2014
Reportable segments
Time information
Environment
system business system businessNet sales:
Sales to third parties
Intersegment sales and transfers
		TotalSegment profit or loss
Segment assets
Depreciation and amortization
Impairment loss for fixed assets
Investment in equity-method affiliates
Increase in tangible and intangible fixed assets¥75,876–
75,876
9,457
57,336
2,854
80
1,646
5,508

¥26,255–
26,2552,233
21,007
436
–
–
272

Total
¥102,131–
102,131
11,69078,344
3,290
80
1,646
5,781

Thousands of U.S. dollars (Note 4)2015
Reportable segments
Adjustments/
Time information Environment
Eliminations
Total
system business system businessNet sales:
Sales to third parties
Intersegment sales and transfers
		TotalSegment profit or loss
Segment assets
Depreciation and amortization
Impairment loss for fixed assets
Investment in equity-method affiliates
Increase in tangible and intangible fixed assets$662,311–
662,31174,679501,809
26,6981,459
14,12947,592$253,003–
253,003
28,031
216,730
4,490
–
–
8,517

38

$915,314–
915,314102,709718,539
31,1881,459
14,12956,108–––(24,731)377,796
3,288
–
–
350

Consolidated$915,314–
915,314
77,9781,096,334
34,476
1,459
14,12956,458

(2) Related Information
Geographic Segments

Information by geographic region for the years ended March 31, 2015 and 2014 is summarized as follows:
Millions of Yen

Net sales:
Japan
North America
OthersTotal

2015¥75,013
13,94820,875¥109,837

2015$625,113
116,240
173,961$915,314

2014¥72,937
12,484
16,709¥102,131

Millions of Yen

Tangible fixed assets:
Japan
Others
Total

Thousands of U.S.dollars(Note 4)2015
¥20,906
3,114¥24,021

Thousands of U.S.dollars(Note 4)2015
$174,222
25,957$200,1802014¥21,3242,920¥24,244(3) Information on both “amortization of goodwill” and “unamortized balance” by reportable segments as at and for theyears ended March 31, 2015 and 2014 is summarized as follows:

Amortization of goodwill
Unamortized balance

Millions of Yen
2015
Reportable segments
Time information Environment
Total
system business system business
¥721
43
¥765
¥4,456409¥4,866

Eliminations/
Corporate
–
–

Total
¥765
¥4,866

Millions of Yen
2014

Amortization of goodwill
Unamortized balance

Reportable segments
Time information
Environment
system business system business¥668–¥5,128–

Amortization of goodwill
Unamortized balance

Thousands of U.S.dollars (Note 4)2015
Reportable segments
Eliminations/Time information Environment
Corporate
Total
system business system business$6,013$366$6,379––$37,138$3,415$40,554

Total¥668¥5,128Eliminations/
Corporate
–
–

Total
¥668
¥5,128

Total$6,379$40,554

As described in “Accounting changes,” the Company and its domestic subsidiaries adopted Section 35 of “Accounting Standard for Retirement Benefits”(ASBJ Statement No.26 of May 17, 2012) and the main clause of Section 67 of “Guidance on Accounting Standard for Retirement Benefits” (ASBJ
Guidance No.25 of March 26, 2015) effective from April 1, 2014. As a result, segment profit of the Time information system business increased by ¥ 63
million, segment profit of the Environment system business increased by ¥ 28 million and adjustments to segment profit increased by ¥ 3 million.

39

21. Per Share Data
Net assets and net income per share as at and for the years ended March 31, 2015 and 2014 are as follows:(1) Net assets per share
Yen

Net assets per share2015¥1,198.22

U.S.dollars (Note 4)

2014¥1,084.44

2015$9.985

Note: As described in “Accounting changes,” the retirement benefits accounting standards, etc. are applied according to the transitional treatment stipulated in Section 37 of Accounting Standard for Retirement Benefits. As aresult, net assets per share at March 31, 2015 increased by ¥ 14.2.

The basis for these calculations is as follows:
Thousands of U.S.dollars(Note 4)

Millions of Yen

Total net assets in consolidated balance sheet
Amount to be deducted from total net assets(Out of the above minority interest portion)
Net assets relating to common stock¥92,148375(375)
91,772¥83,482422(422)
83,060$767,898
3,131(3,131)
764,767

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

76,591,244

76,593,021(2) Net income per share
Yen

2015
¥88.71

Net income per share

U.S.dollars (Note 4)

2014¥69.192015$0.739Notes: 1. As described in “Accounting changes,” the retirement benefits accounting standards, etc. are applied according to the transitional treatment stipulated in Section 37 of the retirement benefits accounting standard. As
a result, net income per share for the year ended March 31, 2015 increased by ¥ 0.80.
2. Diluted net income per share is omitted as there were no potential shares with dilutive effect.

The basis for these calculations is as follows:
Thousands of U.S.dollars(Note 4)

Millions of Yen

Net income in the consolidated statement of income
Net income relating to common stock¥6,794
6,794

Average number of shares ofcommon stock outstanding during the year

76,592,083¥5,2995,299
Shares40

76,594,071$56,623
56,623

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

70 Sales Offices Located in major cities,
including

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

SAGAMIHARA Factory
HOSOE Factory

Board of Directors
Chairman & Representative Director

Director & Operating Officer

Managing Operating Officer

Kaoru HARUTA

Takeshi AKAGI
Yasuhiro SASAYA

Kenji KOHORI
Bungo NOGAWA(Outside) Director

Operating Officer

Isao KISHI
Kiyoshi KAWASHIMA

Kunihiro IHARA
Minoru YONEZAWA
Tatsuo NIIHO
Masahiko MORITA
Myeong-Jin JEON
Tetsuhiro KONDO
Jun NAKAKURO

President & Representative Director

Izumi NAKAJIMA(Full-time) Audit & Supervisory Board Member

Director & Managing Operating Officer

Naoki NAKADA
Haruhiko YAMAGUCHI

Minoru KOYAMA
Hiroshi SHIRAISHI
Toru UENO
Isao TERASAKI(Outside) Audit & Supervisory Board Member

Yoshiyuki SATO
Takehide ITONAGA

Overseas Operations
1. AMANO USA HOLDINGS,INC.
2. AMANO CINCINNATI,INC.
3. AMANO CINCINNATI,INC. OHIO FACTORY
4. AMANO CINCINNATI CANADA INC.
5. AMANO PIONEER ECLIPSE CORPORATION
6. AMANO McGANN, INC.
7. ACCU-TIME SYSTEMS, INC.

8
12,13

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

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

9,10
6

11
15

14

AMANO CORPORATION

16,17,18
19
20

23
21
22

41

4
3
5

1,2,7

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