FINANCIAL REPORT
April 2013 March 2014

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 byintroducing Amano McGann’s new systems into the market and by improving our ability to propose 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 expand business by acquiring the wooden floor sanding equipment division of Amano Pioneer Eclipse Corp. In the Environment 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 our Frenchmarket customer base and will strive to permeate and expand the markets in Belgium
and Germany by offering T&A, access control, and cloud solutions through Horosmart
S.A. 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 new commissioned management services business.
2. Asian, Latin American and other emerging markets
Asia: In the Parking Systems business, we will scale up operations by launching lowend barcode systems into the market and enhancing the commissioned management
services business. In the Environment 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 andour head office in Japan. We will also expand our local production capabilities in orderto enhance cost competitiveness.
Latin America: In light of future local business expansion, we will explore market frontiers in the Information Systems, Parking Systems, and Environment 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)
AmountYoY (%)
110,000
7.7
9,100
3.1
8.3
–
9,700
2.9
6,300
18.9

2

FY 2015(ending March 2016)
AmountYoY (%)
119,000
8.2
10,90019.8
9.2–
11,600
19.6
6,900
9.5

FY 2016(ending March 2017)
AmountYoY (%)
130,000
9.2
13,00019.3
10.0–
13,600
17.2
8,300
20.3

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 35% 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 ¥17 per share, an increase of ¥4 per share compared with the amount
paid at the end of the previous year. As a result, the annual per-share dividend will be ¥30(including the ¥13 per share paid as the interim dividend). This corresponds to a dividend
payout ratio of 43.4% and a 2.9% ratio of dividends to net assets on a consolidated basis.
With regard to our Basic Policy on Distribution of Profits for the next fiscal year, in linewith the new medium-term business plan we started to implement in April 2014, in orderto return more profits to our shareholders we aim to maintain a payout ratio of at least
40% on a consolidated basis while maintaining a stable ordinary dividend of ¥26 annually (interim dividend of ¥13 and year-end dividend of ¥13) as well as a ratio of dividend
to net assets of at least 2.5%.
Taking into consideration this new Basic Policy and the earnings forecasts, we aim to pay
an annual per-share dividend of ¥32 for the next fiscal year (interim dividend of ¥15 andyear-end dividend of ¥17).
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, 2014

During the fiscal year ended March
31, 2014, although overseas economies continued to struggle due touncer tainty resulting from factors
such as the slowdown of the Chinese economy and decelerating
growth in emerging economies, theJapanese economy seemed to be
on track to recover moderately. This
was thanks to a continued increasein public investment due to the effects of the government’s economic
policy, a recovery in capital investment following an improvement

selling, general, and administrative(SG&A) expenses.

in corporate profits, and steadypersonal consumption due to improvements in the employment andincome situation.

As a result of the above, during the
fiscal year under review, the Company recorded sales of ¥102,131
million, up by 13.1% year-on-year.
Operating profit increased by 20.4%
to ¥8,826 million, ordinar y profit
went up by 21.3% to ¥9,423 million, and net income increased by
33.0% to ¥5,299 million, resulting inincreases in both income and profit.

Amid this business environment, theAmano Group worked in accordance with the consolidated global
growth strategy outlined in its new
medium-term business plan drawn
up in April 2011 on global market
and product development as wellas the enhancement of its capacity to provide holistic solutions. The
Amano Group also concentrated
on thoroughly uncovering customer
needs and strove to reduce thecosts of goods sold (COGS) and

The following is a breakdown ofsales by business division.

Sales by business division(Unit: Millions of yen)

FY2012Category

FY2013

Change(April 1, 2012–March 31, 2013) (April 1, 2013–March 31, 2014)
AmountRatio (%)

AmountRatio (%)

Amount%Information Systems

19,331

21.4

22,979

22.5

3,648

18.9

Time Management Products

3,996

4.4

4,087

4.0

91

2.3

Parking Systems

42,20746.7

48,808

47.8

6,601

15.6

Subtotal

65,53572.5

75,87674.3

10,34015.8

Environmental Systems

17,385

19.3

18,157

17.8

772

4.4

Clean Systems

7,374

8.2

8,097

7.9

722

9.8

Subtotal

24,76027.5

26,255

25.7

1,494

6.0

Total

90,295100.0

102,131100.0

11,835

13.1

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 improved
because companies’ informationrelated investments have recoveredin Japan following the economic recovery and the demand for system
updates increased due to termination of Windows XP support.
In response to these market conditions, the Company focused on
attracting demand by making more
proposals for comprehensive solutions associated with the transition
from owning systems to using systems that suppor t the introduction of an optimum-working-hours
system, control of total personnel
expenses, and enhancement of laborcompliance.
Domestic sales for the cur rent
term were as follows: hardware
sales increased by ¥747 million(14.2%) year-on-year, software sales
increased by ¥612 million (20.8%),
and sales generated by maintenancecontracts and supplies services increased by ¥232 million (6.9%). The
increase in hardware sales was attributed to the effects of the launchof new products and order s forlarge-scale projects, and the increasein software sales was attributed tothe strengthening of 3-in-1 sales
activities for time and attendance(T&A), payroll, and human resource
management. As a result, T&A system sales increased by ¥1,439 million (18.2%) while access control
system sales were down by ¥118
million (9.0%).
Overall overseas sales increasedby ¥1,861 million (27.0%). The
sales of Accu-Time Systems, Inc. inNorth America increased thanks topositive foreign exchange rate effects and other factors; the sales of
Horosmart S.A. in Europe remained
strong and also increased.
As a result of the above, sales in thisbusiness division totaled ¥22,979
million, representing an increase of
18.9% year-on-year.

SX-270Time 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 concentr ated on expanding its customer base and uncovering new demand by strengthening Internet and mail order sales
promotions on low-priced equipment and supply commodities.

5

Overall domestic sales for the current term increased by ¥20 million(0.7%), in spite of a decrease inexpor ts due to the rush demandfor consumable goods, etc. before
the consumption tax hike and anincrease in Internet and mail ordersales. Overseas sales increased by¥14 million (1.2%) thanks to positive foreign exchange rate effects
and other factors.
As a result of the above , sales
in this business division totaled¥4,087 million, representing an increase of 2.3% year-on-year.

Parking Systems
The Parking Systems business sector
in Japan has been working to reducethe costs of parking lot management,
promote environmental initiatives,
ensure safety and security in parking lots, and increase conveniencefor parking lot users in order to
respond to the increasingly diverse
needs of parking lot management.
In response to these market conditions, the Company has, in cooperation with its Group companies
in Japan, and with safety, security,and environmental awareness as its
watchwords, focused its efforts on
expanding commissioned parking lot
management services. The company
has done this by vigorously developing proposals for better services forparking lot users, proposals for efficient parking lot management utilizing a parking lot information distribution service, and comprehensive
proposals covering equipment andvarious ancillary services. The Company has also made efforts to expand into new markets for security-

gate systems, toll road systems, andbicycle parking systems, etc.
In Japan, sales of large parking lot
systems during the fiscal year increased by ¥2,340 million (15.0%)
and revenues from maintenancecontracts and supplies services increased by ¥363 million (4.2%).
The commissioned managementbu s i n e s s by G r o u p s u b s i d i a r y
Amano Management Service Corporation expanded steadily and thenumber of commissioned parking
spaces increased by 31,400 (12.5%)
from the end of the previous fiscal
year.
Overall overseas sales increasedby ¥2,992 million (29.5%). Sales forNorth America increased because
positive foreign exchange rate effects and other factor s assisted
Amano McGann, Inc., although sales
decreased on a local currency basis.
Sales for Europe increased due toincreased orders for systems for
Asian and Oceanian markets. Sales
in the Asian region increased as
sales in Korea remained firm.
As a net result of the above, sales
in this business division totaled¥48,808 million, up by 15.6% yearon-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
In this business division, capital
investment star ted to increase
moderately following the economic
recovery in Japan, while capital investment by Japanese companies
operating abroad remained steady.
Against this backdrop, the businessenvironment showed signs of recovery.
In this mar ket environment, theCompany has made efforts to boost
sales of standard equipment by promoting new products in its solution
proposals and has strengthened its
efforts to expand new markets forpharmaceutical, foods, and cosmetics. The Company also proactively
shifted its managerial resources toareas where there is demand andfocused on the expansion of orders.
The Company’s efforts included thestrengthening of local engineering
capabilities, the establishment ofcloser cooperation with overseas
group companies, and full-fledged
business development in Nor th
America in order to attract demand
from businesses operating overseas.
During the current term, domestic
sales of standard dust collectors
increased by ¥410 million (7.7%),
although sales of large-scale systems
decreased by ¥315 million (5.6%)
affected by the restraints on capital

6

investments that continued until thefirst half of the current fiscal year,
and sales of maintenance contracts
and supplies services decreased by¥233 million (6.1%) year-on-year.
Overall overseas sales increasedby ¥703 million (27.4%). Sales increased in the Asian market as awhole, especially Southeast Asia.
Sales increased in the North American market due to increased orders
for large-scale systems.
As a result of the above, sales in thisbusiness division totaled ¥18,157
million, up by 4.4% year-on-year.

Clean Systems
This business division is seeing increasing needs for commissioned
cleaning services and maintenanceof building aesthetics despite theprolonged corporate restraints on
cleaning management costs in Japan.
To cope with this market environment, the Company has actively developed proposals for improving efficiency without compromising quality. In addition, the division worked
to unlock new demand by enhancing proposals for commissioned
cleaning services and preparing new
proposals based on the concept ofcomprehensive cleanliness solutions,including cleaning of both floors andvertical surfaces.
Domestic sales of cleaning equipment during the fiscal year underreview increased by ¥296 million(15.4%) year-on-year, and revenue
from maintenance contracts andsupplies ser vices increased by ¥6
million (0.2%), while revenue fromcommissioned cleaning services increased by ¥31 million (2.1%).
Overall overseas sales increased byAnalysis of Financial Condition(i) Assets, liabilities, and net assets• Assets
Total assets as of March 31, 2014
amounted to ¥122,838 million, up by¥13,361 million from the previous fiscal year-end. Current assets increasedby ¥9,517 million year-on-year. Thiswas chiefly due to a ¥5,839 million increase in cash and bank deposits anda ¥3,664 million increase in notes andaccounts receivable-trade. Fixed assets
increased by ¥3,844 million year-onyear. This was attributable primarily to,for tangible fixed assets, a ¥530 million
increase in buildings and structures aswell as a ¥272 million increase in leaseassets, and for intangible fixed assets, a¥1,178 million increase in software.

¥384 million (21.8%) year-on-year. In
particular, sales for North America
increased.
As a result of the above, sales in thisbusiness division totaled ¥8,097 million, up by 9.8%.

• Liabilities
Total liabilities as of March 31, 2014
amounted to ¥39,355 million, up by¥6,597 million year-on-year. Current
liabilities increased by ¥3,872 million
year-on-year. This was chiefly due toan increase of ¥1,128 million in accrued income taxes, an increase of¥916 million in electronically recorded
obligations, and an increase of ¥745
million in other current liabilities due
to an increase in accrued expenses.
Fixed liabilities increased by ¥2,724
million year-on-year. The principal factors behind this were an increase of¥4,158 million in net defined benefit
liabilities and an increase of ¥889 million in long-term bank loans, despite adecrease of ¥2,670 million in accrued
retirement benefits for employees associated with changes in accounting
standards.
• Net Assets
Total net assets as of March 31, 2014
amounted to ¥83,482 million, up by¥6,764 million from the previous fiscal
year-end. This was primarily due to an

7

increase of ¥3,306 million in shareholders’ equity by posting net income
and an increase of ¥3,305 million in
total accumulated other comprehensive income resulting from an increasein foreign currency translation adjustments.
(ii) Cash Flows
Consolidated cash and cash equivalents increased by ¥5,087 million fromthe previous fiscal year-end to a totalof ¥31,674 million as of March 31,
2014. The status of each type of cash
flow at year-end and the underlying
factors are as follows.
(1) Cash flow from operating activities
Net cash provided by operating activities totaled ¥11,035 million. This
was attributable primarily to income
before income taxes amounting to¥9,299 million, and depreciation andamortization amounting to ¥3,711
million, despite income taxes payments amounting to ¥3,084 million.

(2) Cash flow from investing activities

quisition of securities. These outflows
were more than offset by proceeds of¥4,683 million from the withdrawal oftime deposits and ¥2,200 million fromthe redemption of securities.

Net cash used in investing activities totaled -¥6,081 million. This was largely
due to expenditures of ¥5,267 million
for the placement of time deposits,¥3,225 million for the acquisition of
tangible fixed assets, ¥2,250 million
for the acquisition of intangible fixed
assets, and ¥2,000 million for the ac-(3) Cash flow from financing activities

was chiefly due to the payment ofdividends amounting to ¥1,991 million and repayment of finance leaseobligations of ¥1,507 million, despite
proceeds from sale and leaseback of¥1,891 million and proceeds fromlong-term debt of ¥972 million.

Net cash used in financing activities amounted to -¥780 million. This

Reference: Trend of cash flow indicators
As of Mar. 31, 2010

As of Mar. 31, 2011

As of Mar. 31, 2012

As of Mar. 31, 2013

As of Mar. 31, 2014

Equity ratio (%)

73.4

70.3

69.6

69.8

67.6

Fair value equity ratio (%)

64.7

59.3

56.9

62.3

66.5

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

17.1

31.4

50.2

34.7

37.3

Interest coverage ratio

250.6

275.2

158.1

207.7

219.7

Notes : Equity ratio: Equity capital/Total assets
		Fair value equity ratio: Gross market capitalization/Total assets
		Ratio of cash flow to interest-bearing liabilities: Interest-bearing liabilities/Cash flow from operating activities
		Interest coverage ratio: Cash flow from operating activities/Interest payments
Assumptions* 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.

Outlook for Fiscal YearEnding March 31, 2015
During the fiscal year ending March
31, 2015, we forecast that theJapanese economy will continue torecover as expor ts are expected
to increase due to the recovery of
the global economy and the yen’s
depreciation. Public investment
is expected to remain firm while
capital investment is expected tomoderately increase, although there
will be effects of rush demand andreaction to the same resulting fromthe consumption tax rate hike.
Amid this business environment,
Amano Corporation and its Group
companies continue to emphasize
the following strategies: 1) emphasis
on Time & Ecology business fields,
and enhancement of core business;2) becoming a niche leader in thebusiness fields in which we excel;3) ceaseless restructuring; and 4)
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” on

8page 11 with a view to maximizing
the corporate value of Amano Corporation while aiming at a 100-year
Company having “Challenge Ourselves to Advance to a New Stage”
as its management concept.
The following business results areprojected for the fiscal year ending March 31, 2015: net sales of¥110,000 million, operating profitof ¥9,100 million, ordinary profit of¥9,700 million, and net income of¥6,300 million. These projections
assume currency exchange rates of¥100 to the US dollar and ¥137 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 (May 8, 2014).
(i) Impact on earnings due tochanges in the business environment
The Amano Group uses the unique
technologies and know-how it has
accumulated to provide customers
with high-quality products, services
and solutions, thereby gaining large
market shares in each sphere ofbusiness in Japan, Nor th America,
Europe, and Asia, and developing its
business globally.
In the year ended March 31, 2014,
the Time Information System business accounted for 74.3% of total
sales, and the Environment Systembusiness accounted for 25.7%. Before the deduction of unallocatedexpenses, the Time Information System business contributed 80.9% tooperating profit, while the Environment System business contributed
19.1%. In terms of weighted averagesales over the last five years, theTime Information System businessaccounted for 74.0% of total sales
and 80.1% of operating profit.
One future r isk factor is that if

market expansion is forecast for abusiness activity within the Time Information System business segment(which accounts for a large proportion of the Group’s business) forsuch reasons as a significant change
in the demand str ucture or thecreation of a new market, entities
in other industries or other powerful competitors may be tempted toenter the market. In such an event,if a competitor were to enter with
innovative products or solutions
that surpass Amano’s, the Amano
Group’s market advantage would
decline, which may have a material
impact on its business performance.
(ii) Fluctuations in exchange rates
The Group engages in businessactivities on a global scale and has
production and sales bases overseas.
In view of this, the Group’s businessresults may be impacted by fluctuations in exchange rates when 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 mea9

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

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 Systems•Information Systems businessIn the Information Systems business, theeconomic environment in Japan has become
positive, and labor authorities have continued efforts to more strictly monitor unpaid
overtime and long working hours (overworking); potential demand among companies for T&A systems, which are used toestablish and build labor time management
systems, has translated into effective demandin efforts to ensure compliance through appropriate working hours management. In
addition, against the backdrop of the need torespond to the My Number System and the
movement toward applying the extra wage
rate to overtime work exceeding 60 hours
per month (from which small- and mediumsized enterprises are exempt) as well as thereview of the legislation on working hours
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 strengthen proposals by adding themental healthcare system to the 3-in-1
management system, covering T&A, payroll,and human resource management as well as
expand the market by offering comprehensive solutions including hardware, software,and cloud services. In the medium-sizedenterprise market, we will enter the financial
accounting market by tying up with CREO
CO., LTD. and work to expand operations
with the aim of becoming a “mini-ERP vendor” by enhancing software for T&A, humanresources, payroll, and accounting as well as
strengthening our consulting sales activities.
In overseas markets, we will expand andimprove our cloud services in Europe andthe United States. Further, Horosmart, S.A.
(France) aims to expand its market into

other areas of Europe, while Accu-Time
Systems Inc. (Nor th America) aims tostrengthen its customer base by introducing
a new series of terminals.

•Parking Systems business
As for the Parking Systems business, amidst
the economic recovery, the parking lotrelated market has been expanding against
the backdrop of the vitalization of the realestate market and the recovery in automobile sales volume, etc. In addition to the needfor parking lot management cost reduction,
ensuring of safety and security in parking lots,
and consideration of the environment, theneed to propose solutions to improve userconvenience has been increasing.
Given this market environment, we aim tobecome a “parking facility service provider”
by further strengthening tie-ups with major
parking lot management companies while
improving functions and operability of system equipment as well as providing various
services, including commissioned management services, through our parking lot data
center for small- and medium-sized parking
lot management companies. In addition,
we will strengthen and expand our efforts
related to facilities such as security gates, tollroads, and bicycle parking lots in order toexpand our business.
As for overseas markets, in the United States,
Amano McGann, Inc. will introduce new systems and strengthen solution proposals by
expanding and improving peripheral services
to expand the market. In Europe, we will
accelerate the development of low-cost barcode systems and expand our business byworking on the new commissioned management service business. In Asia, we will aim to
expand our business by strengthening lowend barcode systems and the commissioned
management service business.

2) Environment Systems business•Environment Systems
In the Environmental Systems business, capital investment has bottomed out in Japan asa result of the recovering economy, and Japanese-affiliated companies operating abroad
exhibit a trend of increasing their capital
investment, which has been expanding from

10

China and Southeast Asia to the Americas.
Given this market environment, in Japanwe will aggressively capture demand mainly
for standard equipment and expand sales
in the pharmaceutical, food, and cosmetics industries, which are expected to growsteadily. We will also work to strengthen ourengineering capabilities and comprehensive
sales, including that of peripheral equipment,by tie-ups with industrial equipment manufacturers with the aim of becoming a “global
engineering multivendor.”In overseas markets, we will strengthen ourengineering capabilities and ability to offer
products and render services to Japanesecompanies operating outside Japan by tieups between our Group companies acrossAsia and our head office in Japan. We will
also expand our local production capabilities
in order to enhance cost competitiveness.

•Clean Systems
In the Clean Systems business, while thetrend of companies trying to reduce cleaning
costs continues, amid the aging of sanitary
workers and an increase in the number of
inexperienced workers, needs to improvesafety and operability of cleaning equipment
have been increasing. At the same time, theneed for maintaining building aesthetics at
low cost has also been increasing.
Given this market environment, in Japan wewill strengthen our customer base by introducing into the market polishers featuringa safety device and expanding sales of small
scrubbers in response to the opening up ofsmall urban supermarkets and the increasein the number of eat-in areas at convenience
stores. With the aim of becoming a “total
cleanliness service provider,” we also promote comprehensive proposals, including
those for commissioned cleaning services
and aesthetic maintenance.
In overseas markets, we will capitalize on the
demand of Japanese-affiliated distribution
companies opening up stores in the Asian
region and expand our business by acquiring the wooden floor sanding equipment
division of Amano Pioneer Eclipse Corp. in
North America.

Business Activities

Time Information Systems“Mental Healthcare System” Newly Released!
Total support for T&A Management!
September 2013, Amano released a
medical diagnostic software called “Mental Healthcare System Wakaba” and astress measuring device called “Lifescore
Quick” targeting the medium to small
business market.
Mental health of employees is becoming a serious social issue as it is believedthat work stress and long working hours
could cause brain and/or heart disorders. Under the Occupational Safety and
Health Act, employers are required tohave its employees who are subject tolong working hours to receive a medical diagnosis by a physician to prevent
health disorders.
By interfacing the Mental Healthcare
and the T&A system, it will enable theemployer to quickly grasp employeeswith excessive work time and the medical diagnostic software will assist in theearly detection of potential health disorders. In addition, the stress measuring
device will provide objective information
regarding employee stress levels.
With these new systems, Amano willcontinue to expand the business by providing holistic solutions.

Stress Measuring Device:“Lifescore Quick”
Medical Diagnostic Software:“Healthcare System Wakaba”

Parking Systems“License Plate Control System” Newly Released!
Digitizing vehicle license plate numbers entering the facility!
Januar y 2014, Amano released the“License Plate Control System” which
together with the access control system,
will enable centralized control of “vehicles” and “people” entering and exiting
facilities such as factories and distribution centers.
The “License Plate Control System”
photographs the vehicle entering thefacility and automatically digitizes thelicense plate number images which arelogged and compiled. In the event ofan accident or theft, the photo image
and license plate information will assist
in identifying the vehicle promptly. By
analyzing the compiled information, suchas length of stay per vehicle, and congestion peak hours, it will aid in improving
distribution efficiency. In addition, byinterfacing this system with the conventional ID card access control system for“people”, it will enable the facility security section to quickly grasp “who” and“what vehicles” are “where” within thefacility in the event of a disaster or an
emergency.
Amano will continue to provide solutions which meet customer needs byapplying the experience and technology
accumulated from the many years inparking systems to areas such as Business Continuity Plans (BCP) and safetymeasures to protect “Assets & People”.

守衛所

The screen of the “License
Plate Control System”

Environmental Systems
Standard Dust Collector Lineup Expanded
New product proposal activities, now in full gear!
October 2013, Amano released an electric oil mist collector the “EM-eⅡ”.
In the field of metal processing and machining, the prevention of work-related
injuries and accidents has become theprime focus and hence the demand formist collectors equipped with safety features such as fire prevention, are growing
stronger. The new “EM-eⅡ” was developed based on designs focused on safety
without compromising its performance. It
is equipped with newly structured electrodes (patent pending) which prevent airflow loss from clogging and uses an electric charging method with low risk of fire.
It is also adopts a new control method forstable operation.
In addition to the existing energy &space saving dust collectors the “PiF
series”, and the “SP series”, the sanitarymodels for the food and pharmaceuticalindustry, this new model will enhance
Amano’s product lineup to pursue newopportunities. Amano will continue to11develop high quality products to improve the factory environment and tomeet customer needs.

Electric Oil Mist Collector“EM-eⅡ”
SP Series

PiF Series

Clean Systems
Newly Released! Japan’s first Autonomous
Robotic Scrubber!
March 2014, Amano newly released
an autonomous robotic scrubber “SE500iX”. The “SE-500iX” is the next generation of the popular “SE-500 series”
which are widely used in factories andcommercial facilities such as supermarkets and shopping malls.
The automatic mode of the “SE-500iX”
is progr ammed by the “Teaching”
method. By actually going through thecleaning process, this scrubber will record and memorize the speed, water
volume, pad pressure and the up &down movement of the suction funnel
for each cleaning area and it can memorize up to 64 patterns. For operationalsafety, during the automatic mode, the“SE-500iX” is guided by various sensors including an infrared laser to avoid
obstacles and steps. It also comes withvoice guidance and a drive recorder asstandard equipment. Robotic scrubbers
will accurately reproduce the cleaning
patterns of a skilled operator thereby
reducing uneven finishes and in addition,
since no human intervention is needed
during the automatic mode, operational
efficiency can be improved by assigningworkers to other tasks. Amano intends
to promote sales of this autonomous
robotic scrubber to position it as oneof its flagship products and continue toenhance its functions.

Autonomous Robotic Scrubber “SE-500iX”

Amano USA Holdings, Inc.
AMANO CINCINNATI, INC.
The ACI time division has seen continued growth in the (TIS) time information
systems product line. As we evaluate theworkforce time management market asa whole, we see sales of traditional timeclocks declining slightly. We feel this is a
growing trend with small business owners.
As more advanced technologies like fingerprint and facial recognition become more
affordable, we will continue to see growthin this product segment. As proof of this,sales of our biometric fingerprint system
combined with Time Guardian software
continue to grow. In fact, one of our largest
retailers has just confirmed that they will be
testing our Biometric fingerprint units in 60of their locations throughout the US.
One of the main benefits of using theseadvanced employee recognition products ascompared to traditional time clocks is it allows small business owners to better manage their employees and eliminate “buddy
punching” which increases productivity andeliminates unearned wages. Amano is currently evaluating several facial recognition
terminals to combine with its Time Guardian software suite.
Amano’s TS-3000i automatic synchronizing web time clock continues to solidify
its place in the time validating compliancemarket. In fact, due to its overwhelming
acceptance, some of our competitors are
now reselling our product.
This product sets the bar in terms of features and functionality. It has been soughtout by many financial and trading institutions to meet their time validation compliance needs. One of our recent successstories includes a deployment of over 850
units to a major trading firm with locationsin Chicago and New York.
The successful launch of the new versionof the PIX-75 was
implemented in thefirst quarter of 2014.
The new clock incorporates a number ofdesign improvements
to increase customer
satisfaction and reduce cost.

ACCU-TIME SYSTEMS, INC.
Accu-Time Systems, Inc. began shipping thePeoplePoint Series of workforce management terminals in Q4 of calendar 2013.
The value-added resellers, independent
software vendors, and end-users to whom
we sell are developing their software products around our new series. The PeoplePoint Series includes large LCD displays,
powerful computer processors, and modern industrial designs.
ATS also broadened our product line with
the introduction of the TimeCom productin 2013. TimeCom is ATS’ new time clock
integration solution for enterprise resource
planning (ERP) systems and workforce man-agement (WFM) applications. TimeCom
includes an ATS time clock, a time & attendance terminal-side application, and cloudbased integration middleware. Timecom isoffered as a software-as-a-service (SaaS)
product, producing monthly recurring revenue for ATS. We expect to see greater
adoption of our managed services throughout 2014 which will result in a growing
source of recurring revenue.
An additionalsource of recurring
revenue initiated in2013 was the introduction of global cellular-enabled
time clocks which
can communicate
via standard mobile networks. The
cellular-enabled
terminals allow our products to communicate to host software where standard
computer communications are unavailable.
As part of our drive to make time clocks
available everywhere, ATS introduced its
global service provider program (GSPP).
The GSPP allows customers around theworld to send their damaged clocks to a local repair depot, saving them time and shipping costs.
ATS continues to provide custom-designed
and manufactured time clocks to certain
partners. In 2013, we initiated three major
custom time clock projects expected togenerate revenue in 2014 and beyond.
These custom time clock projects are withthree major global WFM software providers and utilize the latest in ATS computer
processing and display technology.
As always, ATS strives to maintain its highcustomer satisfaction levels. By continuing
to offer customers time clocks built to strict
quality standards, that can communicate
anywhere, and will integrate with a variety
of software platforms, we will continue togrow our business.

Amano McGann, Inc.
GeneralCompany Overview
For over 25 years our customers haverelied heavily on Amano McGann’s (AMI)
industry leading lane devices and software
to manage their business. With emerging
technology like Big Data, Business Intelligence, Mobile Devices, and the Internet ofThings, the demand for Cloud Computing
will shape the future of our industry. AMI iswell positioned for the future.
The 2014 release of OPUSeries® lane
devices and OPUSuite® cloud application
will allow AMI to maintain and expand its
leadership position by leveraging these latest tools and technology. Both existing andnew customers will improve performanceand yield by leveraging the same cloud platform that power Skype, Office 365, Bing,and Xbox.
Forrester reports public cloud services continue to drive big changes in the markets
for software, hardware, and IT outsourcing,while providing a foundation for age of the12customer innovations. Forrester projects
that the public cloud market will reach$191 billion by 2020, from 2013’s total of$58 billion. Cloud applications, at $133 billion in 2020, are leading this growth; cloud
platforms will generate $44 billion in revenue by 2020; and cloud business services
will come in at $14 billion. For CIOs, themessage is clear: “Shift into the driver seat,or others will.”
OPUSuite and the Windows cloud platform
transforms data into business decisions
so that our customers can be more agile
and responsive. It turns massive streams ofdata into insight and helps drive unparalleled productivity. OPUSuite is designed to
improve the performance of a single carpark or can easily scale-up to address eventhe largest of portfolios transforming a dispersed parking operation into a connected
team.
Cloud computing is not enough for ourbusiness. The parking industry is just as reliant on a solid, reliable and flexible hardware
platform on-premise. The lane devices must
not only provide physical control of the operation and revenue, it must also accurately
and seamlessly collect and transfer car park
data as well as receive information andcommands from the Cloud.
AMI’s full-line of robust on-premise devices
meets the needs of any application. All
are integrated and engineered by AMI totake full advantage of the OPUSuite cloud
platform and leverage these emerging technologies to improve business performance,yield, and customer satisfaction.

New Amano McGann Corporate
Headquarters
AMI’s MN headquarters and Minneapolis
branch office began the New Year at a newlocation in Roseville, MN. Over the past
several years AMI has seen continued success and growth resulting in MN employees
being split into three different spaces.
The relocation allowed for increased space
and a more cohesive work environment
having everyone back under the sameroof. Additional benefits include: triple
the amount of conference room space,more open area for product engineeringand testing,office space
for travelingexecutives, anda dedicatedtraining center.

Performing our Masterwork
The Future of Parking Revealed–IPI 2013
Amano McGann’s Engineering department
The 2013 International Parking InstituteConference and Expo proved to be agreat success and kept the sales team on
their toes with countless question/answer
sessions and demos making it the busiest
show to date!
The booth was
packed to capacity with customers eager to getconnected andlearn more aboutall the products shown in the AMI booth.
Hot buttons in the booth included the new
OPUSeries® barcode solution line, OPUSuite cloud application, AMG Series magstripe solutions, Amano Multi-Space Meters
powered by Metric, and a video wall displaying live video analytics demonstrated by
the Amano Security team. All of this drew
crowds into the booth from every verticalmarket and from locations all around theworld including the U.S., Canada, Mexico,
Columbia and Kuwait.

Wichita Mid-Continent Airport(Airport)

Product Development – eParcSuite
Validation Solutions

AMI and Metric Parking were awarded thenew on-street parking pay station contact
for the City of Lowell, MA. One hundredand seventy two new solar-powered multispace meters plus upgrades to 25 preexisting units were installed in Q4 of 2013.

Over the last year, AMI has added a plethora of value added solutions to its productportfolio to enhance its core products andattract customers with even more enticing
options. One example is the eParcSuite, afamily of validation solutions allowing customers to get exactly what they need outof their validation system and processes.
The eParcSuite includes eFlexPrint – a system allowing facilities the freedom to createcustom validations for specified groups or
tenants and print them in bulk instantaneously, eParcVal – a system delivering aticket based validation solution eliminating
the hassle of having to use multiple coupons
or tickets, and eFlexPass – a system focusing on customers in need of a validation
solution for patrons that are only using theparking facility for a short time frame.

Market SuccessOver the past year, AMI has seen great
success across all of the vertical markets
we serve. Each market has its own uniqueoperational needs and AMI is able to accommodate these needs with our full rangeof products, value added solutions and strategic partnerships. A few examples of thissuccess are discussed below.

University of
Iowa (Education)
AMI was awarded
the contract to update the Revenue
Control System for
the University of
Iowa’s 30 parking facilities made up of 120
lanes of revenue and access equipment.
The University plans to improve customer
convenience and facility operations with theaddition of AMG Series hardware, FlexScan
barcode readers, iParcProfessional Software,
Event System, and Click and Park interface.

Fashion Outlets of Chicago (FOC) (Retail/Mixed Use)AMI installed a stateof-the-art Parking
Revenue and Access
System at the Fashion
Outlets of Chicago.
The system installation of the 2,800 space,
21 lane parking facility was completed for
FOC’s grand opening on August 1, 2013
and was designed to make life more convenient for the center’s shoppers.

AMI was awarded the parking equipment replacement contract for the MidContinent Airport in Wichita, Kansas in thefall of 2013. Mid-Continent Airport is thebusiest airport in Kansas and installation for
33 lanes and 4,566 parking spaces will begin
summer 2014 with expected completion in
the spring of 2015.

City of Lowell (Municipal / On-Street)

AMANO PIONEER ECLIPSE CORPORATION
In 2013 Amano Pioneer Eclipse Corporation (APEC) grew 12%,
continuing a multi-year
growth trend whichstarted in 2010. The
resulting 3 year CAGR
is over 11%. APEC’s
growth in 2013 was highlighted by 33% growth in the United States,a result driven by continued improvements
in sales personnel, increased focus in direct
sales, and new product introductions. International sales was also a focus in 2013
with the creation of new sales territories in
the UK and Germany. The addition of new
distribution partners in Argentina, Uruguay,
and Paraguay, gave APEC sales in over 45
countries in 2013.
New product development continued to
be a driving force in 2013, with the introduction of theindustry’s first 30”
battery burnisher,
the 300BU30X(30X). The 30X
utilizes APEC’s
successful SteadyOne™ technology
and introduces the patent pending X2™
technology, which provides the 30X withincreased battery run time and improved
performance at a lower cost than industry
competitors. The
Research and Development team wasalso busy improving
APEC’s chemical
product offeringwith the launch of a new low cost floor
cleaner (NeutraFresh™) and the introduction of OmniGuard™, a 25% solids UHS
floor finish designed to provide high traffic
retail facilities with a durable, high gloss finish. OmniGuard™ was instantly acceptedby APEC’s customers in the U.S., Canada,
and Australian markets, making it one of
APEC’s fastest growing products.
Amano Environmental Americas (AEA),
APEC’s brand of industrial mist and dust
collection systems, continued its rapid
growth in 2013, with a sales increase of

13

510%. Founded in just 2011, AEA has
quickly grown to represent 15% of APEC’s
total revenues. AEA has successfully established relationships with large automotive
industry manufacturers who are actively
expanding their production capabilities
throughout the Americas, which should allow AEA to continue its growth path going
forward.
In 2013, APEC also completed the acquisition of
Clarke American Sanders,purchasing the wood floor
equipment manufacturer
from Denmark’s NilfiskAdvance A/S, on March
31, 2014. Clarke American Sanders manufactures
the world’s leading line ofwood floor sanding equipment, with product offerings designed forboth the professional contractor market
and the small-tool rental industry whichcaters to do-it-yourself customers. The
acquisition of the Clarke American Sanders
product line gives APEC a market leading
position in the wood floor care industry.
The addition of floor sanding equipment to
APEC’s broader equipment line offers thebusiness near-term growth opportunities inseveral global markets, while also providing
APEC new sales outlets in North America
for its chemical product offering.
APEC consolidated plant operations undera new VP of Operations in an effort to accelerate production and process improvements throughout the facility. Operational
improvements made in 2013 included
adding quart bottle capability in the chemical processing line, improved piping infrastructure to reduce batch processing time,and an improved bottle conveyor system
to deliver bottles directly to the bottling
production line. In the machine production
facility, both manufacturing lines were redesigned with improved workflow layout todrive one-piece flow and create a reduced
and more consistent TAKT time.

Amano Europe Holdings, N.V.
Amano Europe, N.V.
In 2013 Amano Europe continued to growboth revenue and profit in the main business segments; parking solutions and timeand attendance.
The X-Parc parking solution has now been
installed successfully in 25 different countries, including Malaysia, Australia, Hong
Kong, India and some African countries.
With X-Parc Amano Europe is able to offer a robust, flexible and network centric
solution based on barcode tickets thatsuits global market needs. Ease of integration, low cost of ownership and fast time
to market are
three of theseveral greatand innovative
benefits thissystem offers.

Amano Europe also successfully installed its
first ticketless parking solution in the airportof Vilnius – Lithuania, based on the X-Parc
solution.
With Astrow Cloud, the next version of theproven T&A software solution for small andmedium sized businesses with an installedbase of more than 5.000 customers in Europe, Amano Europe resolutely goes for abusiness model based on recurring revenue.
With iTR-100, launched in 2013, Amano
Europe will keep its strong position in thetime recorder market. iTR-100 not only
stretches on the typical time recorder functionality by offering
new and compelling
cloud services but
can also be seen as
the entry point for afurther upgrade towards Astrow Cloud.

Horoquartz:
During 2013 Horoquartz observed agrowth of its activities in its three business lines. An increasing demand has been
noticed for advanced scheduling software.
Major successes have been achieved in theretail and services field. This trend confirmsthat customers are now focusing more on
operational efficiency improvement thanon HR administration performance. The
Horoquartz solutions are now available
on the Microsoft Azure cloud platform
to improve flexibility and reduce cost for
end-users. 4 new partnerships have beensigned with companies specializing in the
HR solutions field in order to enlarge the
Horoquartz ecosystem. HQ Resources, a
new scheduling solution has been launchedto help customers to deal with service continuity constraints; it is particularly aimed at
local authorities. The P2S security solution
has experienced significant growth in 2013,
particularly in industries subject to strict
standards and safety requirements. ManuelValls, who is now the French Prime Minister, inaugurated the first P2S installation in
the Ministère de l’intérieur (French Police
Ministry). The Easy’ID identity and cardmanagement solution is now expanding in
the private sector after having been successfully implemented in the French education field, where today approximately /500
000 French students using cards producedwith this technology.

Scopus Omnibadges
Scopus Omnibadges is a manufacture,
print and personalize plastic cards,
specialized on small
and medium quantities. Their main markets are multi-application
cards for large firms, private payment cards,
identification cards and school catering cards.
They also provide personalization systems forsome of the largest companies in France.
Scopus Omnibadges have focused their 2013
operation on margin improvement and cost

reduction. Despite a slightly reduced sales
level, EBIT soared by 34% and reached over
21% of turnover.

AMANO TIME & PARKING SPAIN, S.A.
In the Spanish market, our service ability,
quality and attitude to take care of customers have been highly appreciated and it has
built up a higher reputation of AMANO
among our customers. At the same time,
our X-Parc machines, thanks to theirfunctionality and quality, have been wellacknowledged in the market. These facts
are bringing us new customers with new
projects.
In the year of 2013, we installed the X-Parc
machines in two truck parkings. The truck
parking for us was a new sector, to which
we had never penetrated. One customer,
who is an engineering company and specialist for truck parkings, came to us, catching
the reputation of AMANO. After having
each other’s technical understanding, westarted to work with that customer andwe obtained two projects in 2013. One
truck parking is located in the southern partof Spain and anotherone in Barcelona. They
are very satisfied with
the X-Parc machines
installed by us. The
pictures show the lattertruck parking.
We will continue to
EXPAND our area ofactivities with excellent
service and product.

Amano Korea Corporation“Lighting Control System utilizing omnidirectional cameras” NEW!
Intelligent LED Lighting Control System
The social environment is becoming complex and diverse and at the same time, it
is also becoming green. More and moreenvironmentally friendly and energy efficient
products are appearing on the market andamid this situation, AKC has discovered
growth potential in LED products. Since
2010, AKC has been engaging in extensive
market research including the tracking ofGovernment policy trends and concluded
that LED’s, combined with parking management services could become a growthbusiness. In order to be successful, AKC
initiated the ESCO* Agenda but what began as an energy savings initiative using LED
lighting, the system grew and expanded into
security business when coupled with omnidirectional cameras.
*(ESCO: Energy Service Company. A company that provides a broad range of energy solutions including design and implementation)
The “Intelligent LED Lighting Control System” automatically controls brightness andlighting range using the images captured byomni-directional cameras which are capableof 360 degree photography. The system willsense vehicles and/or people, the speed of

14

movement and the surrounding illuminationlevels and light up the area at appropriate
levels. If the object is moving, an appropriate distance ahead will be lighted dependingon the speed.
Motion Movement
Detection

Image Scanning LED Lighting Control(Considering Speed 20-30m Ahead)

100%

20m

20m

100%

100%

50%

20%

20%

20~30mBatch control of lightings based on direction of
movement detected by the motion sensor

When motion detected lighting auto adjusts to max brightness and image shooting mode

AKC is developing (i) a Parking Space Control System and (ii) a Parking Facility Security System.
(i) The Parking Space Control System monitors 6 spaces and it includes a LPR function which can be used to provide position information and vehicle guidance.
(ii) The Parking Facility Security System isa low cost security solution by utilizing
a minimum number of omni-directional
cameras.
By installing this system, it will deter acts ofcrime such as theft, kidnapping and violence
within the facility. The omni-directional cameras can be used for continuous video recording
and can be monitored when linked to a NVR(Network Video Recorder).
Major features of this system:
1. It maximizes energy efficiency by lighting
at 100% only after detecting movement.
2. By pre-setting a detection range of 10m
and 20m radius on the omni-directional
cameras, it will record the objects entering that range. This will eliminate blind
spots to maximize video security. In addition, the 2 mega pixel video will ensurehigh quality images which can be submitted as evidence in the event of accidents
and/or other incidents requiring legal
intervention.
3. The 360 degree image taken by the omni-directional camera can be divided into
4 even images, each image representing
an image taken by a single camera. Therefore, by installing one omni-directional
camera it is equivalent to installing 4 conventional cameras thereby saving installation costs.
4. By applying HOG (Histogram of Gradient) technology on the image capturedby the camera, the direction of movement can be predicted.
0°
20m

20m
10m

10m

10m

20m

270°

90°

180°

The core of the “Intelligent LED Lighting
Control System” is the dimmer unit. AKC
has designed this dimmer unit to function
with a PWM (Pulse Wave Modulation)
controlled stable DC 5V which is poweredby a separate SMPS (Switched-mode PowerSupply) unit. By integrating the dimmer unit
and the SMPS unit onto a single PCB, AKC
has simplified the system design to a OneBoard Type Dimmer unit, thereby reducing
the cost.

issues that could be solved before. AKC isanticipating great potential for this system.

[SMPS+Integral Type Dimmer]
AC
Free
Voltage

LED Driver

SMPS

DC

Regulator

MicomsignalDC 5V

PWM
Communication
S/W

Full
Range

LED Light
11W～40W

Wire / Wireless Camera
Communication

The LED lighting control process is as follows:
NVR

D.Send Results
a
at
lD
tro
on
C
er
m
m
Di
F.

C.Image Analysis/
Scan
B.
Send Image
Full Range
CameraLighting Control
ServerE.Data Processing
Lighting Control

G.Dimmer
Control

Dust Collector for Graphite Milling
MachineH.Lighting
DimmerControl

Amano Time & Air Singapore Pte. Ltd.

LED Light

A.Motion Detection

Upon detecting movement, the omnidirectional cameras become operative andreal time images are transmitted to the NVR.
The images are analyzed and the results aresent to the lighting control server. The server
will then process the multiple results it receives and synthesize lighting control data andtransmit it to a single or a number of omnidirectional cameras in accordance with thepredetermined parameters. The camera(s)will then activate and control the LED lights
via the dimmer it is connected to.
AKC’s main line of business has been parking control systems, but there are now many
manufacturers crowding the market anddownward pressure on prices is stronger thanever. In addition, users have better access to
information and are becoming more knowledgeable and selective. In order to survive andremain ahead of the competition, it is essentialthat AKC develops and launch new products
and systems which are not only limited toparking control and/or vehicle guidance (ultrasonic sensors and cameras) systems. This “Intelligent LED Lighting Control System” which
incorporates omni-directional cameras is suchan example because the product has security
applications as well. Other examples such as“Flapless Parking Systems” and “Facial Recognition Systems” can also be included in thewider definition of security related products.
AKC is determined to remain as the leading
company in parking by continuously launching
new products with multiple applications toserve its customers and society.

FLAP SYSTEM without the FLAPS!
Introducing the New “FLAPLESS LPR
SYSTEM”
As cars continue to increase year by year,
parking is becoming a major problem inthe city centers. The Government is taking
initiatives to not only build new off-street
parking facilities, but also to build new onstreet parking and utilizing portions of residential areas to build public parking. In thisconnection, AKC has developed a revolutionary on-street parking system called the“Flapless LPR System”, which addresses the

We, AMANO Time&Air Singapore Pte. Ltd.
is handling many range of the product, andone of the main product is a dust collector.
For the dust collector business, one of ourimportant customer is “Makino Asia Pte. Ltd.”“Makino Asia Pte. Ltd.” was set up in Singapore as an Asian headquarter of Japanesemachine tools manufacture “Makio Milling
Machine Co. Ltd.”.
They are selling thevertical machining centre, graphite machining
centre, etc to the customer in China, India,
Thailand, Indonesia,
Vietnam, Philippine, Malaysia, and so on.
AMANO dust collector is used to suck thegraphite powder, as standard peripheral
equipment for the graphite machining centre.
Graphite machining centre fabricates themolding die for small parts (e.g. mobile phonecase) or graphite electrode with high-quality
surface finish.
At that time graphite powder is generated as
cutting scrap, and this dust is very fine. By thisreason, the important factor for the dust collector is “Dust Collection Ability of the Filter”
and “Dust-off Ability”.
We examined for these factors together. As
a result of the examination, we concluded
below two points are important.
-Finefil Filter is required for powder collection
ability.
-Pulse Jet is requiredfor dust-off ability.
And, to satisfy theserequirements, AMANO Pulse Jet Dust
Collector “PiE-60M”
is adopted by Makino
Asia.
We tested the sample unit together, and we
started supplying PiE-60M officially. After thenMakino Asia is continuously purchasing thedust collector from us.
In year 2013, we shifted the dust collector
model from “PiE-60M” to ”PPC-60” for further improvement of the cost and quality.
Since the business market is expanding in
Asian area, Makino Asia business and AMANO business is expected to grow up more
and more.

15

AMANO Corporation and Subsidiaries

Financial Highlights
For the years ended March 31, 2014 and 2013.
Yen in millions and U.S.dollars in thousands, except per share amounts- See Note 5 to the Consolidated Financial Statements.
Thousands of U.S.
dollars (Note 5)

Millions of Yen

2014

2013

2014

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

¥102,131¥90,295$991,565

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

5,299

3,986

51,452

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

¥69.19¥52.04$0.672

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

30.00

26.00

$0.291

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

¥122,838¥109,476$1,192,602

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

45,794

40,149444,607

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

83,482

76,718810,514

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

¥22,979¥19,331$223,101

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

4,087

3,996

39,687

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

48,80842,207473,872

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

18,157

17,385

176,291

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

8,097

7,374

78,613For 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 ¥103 = US $1, the rate prevailing on March 31, 2014.
-See Note 5 to the Consolidated Financial Statement.

Net Sales

Net Income

Net Income Per Share(Millions of Yen)

(Millions of Yen)

(Yen)

1100006000

80100000

70

5000

90000

60

80000
4000

70000
60000

50

3000

50000
40000

40
30

2000

30000

20

20000

1000

10

10000
0

'10

'11

'12

'13

'14

0

'10

'11

'12

16

'13

'14

0

'10

'11

'12

'13

'14

AMANO Corporation and Subsidiaries

Consolidated Balance Sheets
As at March 31, 2014 and 2013.			
Thousands of U.S.
dollars (Note 5)

Millions of Yen

ASSETS

2014

2013

2014

Cash and bank deposits (Notes 15 and 19) .................

¥35,014¥29,175$339,947

Marketable securities (Note 19) .................................

1,658

1,241

16,09728,58424,920277,516

Current assets:

Notes and accounts receivable:
Trade (Notes 8 and 19) .........................................
Less allowance for doubtful accounts .....................

(265)

(177)

(2,578)28,31824,742274,939

3,054

2,984

29,657

Inventories:
Merchandise and finished goods ............................
Work in process ...................................................

761

931

7,396

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

3,303

2,781

32,068Deferred tax assets (Note 22)......................................

1,245

1,235

12,091Other current assets ..............................................

1,415

2,160

13,742

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

74,771

65,253725,936

Buildings and structures (Note 9) ...............................

29,07327,995282,268

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

18,563

18,821

180,226

Leased assets (Note 18) .............................................

6,590

5,331

63,99054,22752,147526,484

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

(37,636)(36,535)(365,407)

16,59015,612

161,077

7,247

7,167

70,367

Property, plant and equipment, at cost :Land ........................................................................
Construction in progress ............................................

406

206

3,945

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

24,24422,985

235,388

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

5,128

4,679

49,795

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

2,541

1,363

24,677

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

794

1,396

7,718

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

1,890

1,042

18,352

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

10,355

8,481

100,542(Notes 7, 19 and 20) .................................................

1,941

1,862

18,851

Investments in securities (Notes 19 and 20).................

4,831

4,726

46,912

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

1,054

1,153

10,236

Deferred tax assets (Note 22)......................................

2,152

1,740

20,897

Other assets ..............................................................

3,892

3,755

37,788Less allowance for doubtful accounts .........................

(406)

(483)

(3,948)

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

13,46512,755

130,736

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

¥122,838¥109,476$1,192,602

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

The accompanying notes are an integral part of these statements.

17

Thousands of U.S.
dollars (Note 5)

Millions of Yen

LIABILITIES AND NET ASSETS

2014

2013

2014

Current liabilities:
Trade notes and accounts payable (Note 19)............................
Electronically recorded monetary claims (Note 19)...........................
Short-term bank loans (Note 9) ..............................................
Lease obligations (Notes 18 and 19) ........................................
Accrued bonuses ...................................................................
Accrued income taxes ............................................................
Other current liabilities ..........................................................
Total current liabilities ..........................................

¥6,065
6,320
451
1,364
1,975
3,007
9,791
28,976¥5,633
5,404
197
1,162
1,780
1,878
9,046
25,104$58,892
61,361
4,386
13,246
19,176
29,201
95,066
281,329

Long-term liabilities:
Long-term loans payable (Notes 9 and 19) .................
Accrued retirement benefits to employees (Note 21)............
Liability for retirement benefits (Note 21)....................
Long-term accounts payable ......................................
Lease obligations (Notes 18 and 19) ...........................
Deferred tax liabilities (Note 22).................................
Asset retirement obligations ......................................
Other long-term liabilities...........................................
Total long-term liabilities ......................................

2,133
–
4,158
189
3,412
122
29
331
10,378

1,244
2,670
–
201
3,133
247
17
138
7,653

20,718–40,372
1,841
33,134
1,190
286
3,217
100,759

Total liabilities ......................................................

39,35532,758382,088

18,23919,29349,29818,23919,56749,385177,083
187,312478,624(52)
86,778(3,719)83,472(506)
842,513574(3,481)(812)(3,718)316(7,340)–(7,023)

5,582(33,796)(7,887)(36,101)

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

422

268

4,101

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

83,482

76,718810,514

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

¥122,838¥109,476$1,192,602

Net assets (Notes 10, 13 and 14):
Shareholders’ equity:
Common Stock
Authorized- 185,476,000 shares
Issued:March 31, 2014 and 2013 - 76,657,829 shares in 2014
and 81,257,829 shares in 2013 ..........................
Capital surplus .....................................................
Retained earnings .................................................
Treasury stock at cost, 64,808 shares in 2014
and 4,662,695 shares in 2013 ................................

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 Statements of Income, andConsolidated Statements of Comprehensive Income
For the years ended March 31, 2014
Thousands of U.S.
dollars (Note 5)

Millions of Yen

Net sales
Cost of sales (Note 12) .........................................................
Gross profit...........................................................
Selling, general and administrative expenses (Notes 11 and 12)......
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 ........................................
Gain on sale of investments in securities ....................
Gain on liquidation of subsidiaries .............................
Loss on write-down of investments in securities (Note 20) ....
Impairment loss on fixed assets (Note 16) ..................
Other, net .................................................................
Income before income taxes and minority interests ........
Income taxes (Note 22):
Current......................................................................
Deferred....................................................................
Income before minority interests ...........................
Minority interests in net income of consolidated subsidiaries ........
Net income............................................................

2014

2013

2014

¥102,131
57,84044,29035,464
8,826¥90,295
50,52739,76732,4387,329$991,565
561,559
430,006
344,315
85,690

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

175
(41)
(47)
189
7
(41)
(1)
2
–
(244)
–
6
7,332

1,709
(487)
483
1,434
240
(503)
(33)
–
248
–
(785)
2,289
90,284

4,039
(160)
5,420
(121)
¥5,299

3,187
78
4,066
(80)
¥3,986

39,214(1,558)52,629(1,177)$51,452

Consolidated Statements of Comprehensive Income

Thousands of U.S.
dollars (Note 5)

Millions of Yen

2014

2013

2014

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

¥5,420¥4,066$52,629

Other comprehensive income (Note 17)
Net unrealized gain (losses) on other securities ..........
Translation adjustments ............................................

258
3,880

497
1,961

2,507
37,674

Share of other comprehensive income of companies
accounted for by the equity-method ...........................

35

28

343

Total other comprehensive income ...........................
Comprehensive income ........................................................

4,174¥9,594

2,487¥6,554

40,525$93,154

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

¥9,417¥177¥6,435¥118$91,429$1,725The accompanying notes are an integral part of these statements.

19

AMANO Corporation and Subsidiaries

Consolidated Statements of Net Assets
For the years ended March 31, 2014 and 2013.
Millions of yen
Shareholders’ equity
Common stock

Capital surplus

Retained earnings

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–

Balance at March 31, 2014

¥18,239

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

(1,991)
5,299(1,991)
5,299
(2)
–

(3,395)

(2)
3,669

(274)

(87)

3,667

3,306

¥19,293¥49,298(¥52)¥86,778(274)

Accumulated other comprehensive income
Minority interests
Net unrealized
Retirement
Foreign currency Total accumulated in consolidated Total net assets
gains (losses) on benefits liability
translation
other comprehensive
subsidiaries
other securities
adjustments
adjustments
income¥316¥–(¥7,340)(¥7,023)¥268¥76,718

Balance at March 31, 2014

258
258

(812)
(812)

3,859
3,859

3,305
3,305

153
153

(1,991)
5,299
(2)
–
3,458
6,764

¥574

(¥812)(¥3,481)(¥3,718)¥422¥83,482

Common 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

$177,083–

Balance at March 31, 2014

$177,083

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

Total shareholders’equity(¥3,719)¥83,472

Treasury stockThousands of U.S. dollars (Note 5)
Shareholders’ equity
shareholdCapital surplus Retained earnings Treasury stock Totalers’ equity$189,976$479,473($36,117)$810,416(19,335)(19,335)

51,45251,452(20)(32,967)(20)
35,631(2,664)(849)

35,61132,098$187,312$478,624($506)$842,513(2,664)

Accumulated other comprehensive income
Minority interests
Net unrealized
Retirement
Foreign currency Total accumulated in consolidated Total net assets
gains (losses) on benefits liability
translation
other comprehensive
subsidiaries
other securities
adjustments
adjustments
income$3,076$–($71,266)($68,191)$2,610$744,836

Balance at March 31, 2014

2,506
2,506

(7,887)(7,887)37,47037,47032,09032,090

1,491
1,491

(19,335)
51,452(20)–
33,581
65,678$5,582($7,887)($33,796)($36,101)$4,101$810,514

The accompanying notes are an integral part of these statements.

20

Millions of yen
Shareholders’ equity
Common stock

Capital surplus

Retained earnings

Treasury stock

Balance at April 1, 2012
Changes during the year
Dividends from surplus
Net income
Purchase of treasury stock
Net changes in items other than shareholders' equity
Total changes during the year

¥18,239¥19,567¥47,391(¥3,719)

Total shareholders’equity¥81,478(0)(1,991)
3,986
(0)

–

–

1,994

(0)

1,994

Balance at March 31, 2013¥18,239¥19,567¥49,385(¥3,719)¥83,472

Balance at April 1, 2012
Changes during the year
Dividends from surplus
Net income
Purchase of treasury stock
Net changes in items other than shareholders' equity
Total changes during the year

(1,991)
3,986

Accumulated other comprehensive income
Minority interests
Net unrealized Foreign currency Total accumulated in consolidated Total net assets
gains (losses) on
translation
other comprehensive
subsidiaries
other securities
adjustments
income(¥179)(¥9,294)(¥9,473)¥186¥72,191

Balance at March 31, 2013

21

495
495

1,953
1,953

2,449
2,449

82
82

(1,991)
3,986
(0)
2,532
4,526

¥316

(¥7,340)(¥7,023)¥268¥76,718

AMANO Corporation and Subsidiaries

Consolidated Statements of Cash Flows
For the years ended March 31, 2014 and 2013.
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 (earning) losses of affiliates ........................
Interest expenses ......................................................
Foreign currency translation (gain) loss ......................
(Gain) loss on sale of investments in securities............
Loss on write-down of investments in securities .........
(Gain) loss on sale of fixed assets ..............................
Loss on disposal of fixed assets ..................................
(Increase) decrease in trade notes and accounts receivable ...........
(Increase) decrease in inventories ..............................
Increase (decrease) in trade notes and accounts payable..........
Others ......................................................................
Subtotal ....................................................................
Interest and dividends received ..................................
Interest paid .............................................................
Payment for extra retirement payments.......................
Income taxes paid .....................................................
Income taxes 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 ..........................................
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 payment to minority interests.....................
Net cash used in financing activities.......................
Effect of exchange rate changes on cash and cash equivalents...
Net increase (decrease) in cash and cash equivalents ..............
Cash and cash equivalents at beginning of year .......................
Increase in cash and cash equivalents resulting from mergerof consolidated subsidiary and unconsolidated subsidiary ........
Cash and cash equivalents at end of year (Note 15)..................
The accompanying notes are an integral part of these statements.

22

Thousands of U.S.
dollars (Note 5)

2014

2013

2014

¥9,2993,711
668
80(2,724)
2,897
(3)
(176)
(49)
50
30
–
–
(21)
51
(2,089)
217
958
1,002
13,902244(50)(0)(3,084)23
11,035¥7,332
3,558
561
–
(337)
–
38
(175)
47
41
(23)
(2)
244
(5)
41
(413)
(173)
414
256
11,408
222
(41)
(209)
(3,443)
42
7,979$90,284
36,038
6,486
785(26,451)
28,129(39)(1,709)
(483)
487
292
–
–
(206)
503
(20,288)
2,110
9,308
9,733
134,979
2,372
(488)
(3)
(29,946)
227
107,141(2,000)2,200(3,225)33(2,250)(306)(5,267)
4,683
(7)
11
46
(6,081)(2,000)2,000(2,152)23(1,883)(1,803)(5,762)
5,265
(63)
65
92
(6,220)(19,417)
21,359(31,316)324(21,845)(2,972)(51,145)
45,473(68)
110
454(59,045)

145
(264)
972
(2)
(1,507)
1,891(1,991)
(24)
(780)
881
5,054
26,587

–
(173)
–
(0)
(1,173)
1,807(1,991)(43)(1,575)481
665
25,921

1,413(2,571)9,440(20)(14,635)
18,363(19,335)(234)(7,578)8,554
49,073
258,12932¥31,674–¥26,587

319$307,521

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 called “the Company”] and its subsidiaries have been
prepared in accordance with theprovisions set forth in the Japanese
Financial Instruments and Exchange
Act and its related acounting regulations in Japan. The accounts of theCompany and domestic subsidiaries
included in the consolidation are
based on the ac-counting records
maintained in accordance with accounting principlesgenerally acceptedin Japan, which are different in certain respects as to the application andthe disclosure requirements of International Financial Reporting Standards. The information in the consolidated financial statements is derived from the original text, scope,and the nature of that information,and is therefore limited to that contained in the original text.As permitted by the Financial Instruments andExchange Law of Japan, amounts ofless than one million yen have beenrounded off. As a result, the totals
shown in the accompanying consolidated financial statements (both inyen and U.S. dollars) do not necessarily agree with the sums of the individual amounts. Certain amounts
in the prior years’ financial statements have been reclassified to conform to the current year’s presentation.

2. Principles of Consolidation(1) Scope of Consolidation

subsidiaries at March 31, 2014.The
accompanying consolidated financial
statements include the accounts of
the Company and those of its subsidiaries that are controlled by the Company. Under the control concept,
major subsidiaries in which theCompany is able to exercise control
over operations are to be fully consolidated.The accounts of the overseas consolidated subsidiaries areconsolidated using their financial
statements as of their respective fiscal
year end, which falls on December
31, 2013 and necessary adjustments
are made to their financial statements
to reflect any significant transactions
from January 1 to March 31, 2014.
All significant intercompany balances
and transactions have been eliminated in consolidation.

(2) Accounting for Investments in Unconsolidated
Subsidiaries and Affiliates
None of the 7 unconsolidated subsidiaries are accounted for by the equitymethod, because the effect on their
net income or losses and retained
earnings on the accompanying Consolidated Financial Statements are
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 inclde
time deposits whose expiration dates
are within three months.

The Company had 26 consolidated

23(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 thestraight-line method. The ranges of
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 amortizedby the straight-line method over their
expected useful lives (fiveyears).
Goodwill is amortized over the estimated useful life, or where theamount of goodwill is immaterial, ischarged to income in the year of acquisition.

(5) Lease Assets
Leased assets in finance lease transactions not involving transfer of ownership are depreciated by the straightline method over the term of thelease, with a residual value of zero.

(6) Accounting for Financial
Instruments(a) Derivatives
All derivatives are stated at their fairvalues, with changes in fair value
included in net profit or loss for theperiod in which they arise.
(b) Securities
Securities held by the Company andits 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, withchanges in fair values included in net
profit or loss for the period in which
they arise. Additionally, Securities
held in trusts for trading purposes areaccounted for in the same manner as
trading securities. Held-to-maturity
debt securities, that the Company andits subsidiaries have intent to hold tomaturity, are stated at their costs after
accounting for premium or discounton acquisi- tion, which are amortizedover the period to maturity.
Investments of the Company in equity securities issued by unconsolidated subsidiaries and affiliates areaccounted for by the equity method.
Exceptionally, investments in certain
unconsolidated subsidiaries and affiliates are stated at cost because theeffect of application of the equity
method would be immaterial.
Other securities for which market
quotations are available are stated atfair value. Net unrealized gains orlosses on these securities are reported
as a separate item in the net assets at
a net-of-tax amount. Other securities
for which market quotations are unavailable are stated at cost, except as
stated in the paragraph below.
In cases where the fair value of heldto-maturity debt securities, equity
securities issued by unconsolidated

subsidiaries and affiliates, or othersecurities 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 the period.

(7) Foreign Currency Translation
Foreign currency transactions aretranslated using foreign exchange
rates prevailing at the respective
transaction dates. Receivables andpayable in foreign currencies aretranslated at the foreign exchange
rates prevailing at the respective balance sheet dates and the resulting
transaction gains or losses are taken
into income curently.

(8) Conversion of Foreign
Currency Financial
Statements (Accounts ofOverseas Subsidiaries)
Foreign currency denominatedstatements of overseas consolidated
subsidiaries have been Converted
into Japanese yen using the method
prescribed by the Business Accounting Deliberation Council ofJapan. All the balance sheet accounts of foreign subsidiaries andaffiliates are Converted at the foreign exchange rates prevailing at
the respective balance sheet dateexpect common stock and capitalsurplus. On the other hand, all the
profit and loss accounts are Converted at the average foreign exchange rates for the respective periods. Differences arising fromtranslation are presented as “Foreign currency translation adjustments” and “Minority interests in

24

consolidated subsidiaries” in theaccompanying consolidated financial statements.

(9) Income Taxes
The Company recognizes tax effectof temporary differences between the
carrying amounts and the tax basisof assets and liabilities. The provision for income taxes is computed
based on the pretax income includedin the consolidated statements ofincome. 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 basedon the past receivables loss experience for a certain reference period.
Furthermore, for receivables withfinancial difficulty which could affectthe debtors’ ability to perform their
obligations, the allowance is provided for estimated unrecoverable
amounts individually.

(11) Retirement Benefits
The Company and some of its subsidiaries recognize accrued pension
and severance costs to employees
based on the actuarial valuation ofprojected benefit obligation and plan
assets at their value. Prior service
costs are amortized based on thestraight-line method over a period often years. Actuarial gains and losses
are amortized based on the straightline method over a period of ten years
starting from the beginning of thesubsequent year.

(12) Accrued employees’
bonuses
Accrued employees’ bonuses at thebalance sheet date are based on an
estimate of the amounts to be paid asbonuses for services rendered by
employees by that date.

(13) Research and Development Expenses
Research and development expenses
are charged to income as incurred.

(14) 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 statements of income represent
actual dividends declared as applicable
to a common stock during the respective
fiscal period.

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

(16) Accounting for consumption taxes
Transactions subject to consumption
taxes are recorded at amounts exclusiveof consumption taxes.

(17) Accounting Changes
The Company adopted “AccountingStandard for Retirement Benefits” (ASBJ
Statement No. 26 of May 17, 2012) and“Guidance on Accounting Standard for
Retirement Benefits” (ASBJ Guidance
No. 25 of May 17, 2012) (except for
certain provisions described in the mainclause of Section 35 of the standard andin the main clause of Section 67 of theguidance) as of the end of the fiscal year
ended March 31, 2014. These accounting
standards require entities to apply a revised method for recording the retirement benefit obligation, after deducting
pension plan assets, as a liability for retirement benefits. In addition, unrecognized actuarial differences and unrecognized prior service costs are recorded as
a liabilitiy for retirement benefits. Concerning the application of the AccountingStandard for Retirement Benefits, basedon the provisional treatment set out inClause 37 of the standard, the effects ofsuch changes in the current fiscal year
have been recorded in retirement benefits liability adjustments through accumulated other comprehensive income.
As a result of this change, an asset for
retirement benefits was recognized in theamount of ¥73 million ($709 thousand),a liability for retirement benefits wasrecognized in the amount of ¥4,158 million ($40,372 thousand) and accumulated other comprehensive income de-25

creased by ¥812 million ($7,887 thousand) as of March 31, 2014. In addition,
net assets per share decreased by ¥10.61($0.103).

4. Significant Subsequent Events
At the Board of Directors Meeting
held on March 28, 2014, the Company announced that the American
subsidiary Amano Pioneer Eclipse
Corporation (“APEC” hereunder) of
the company, entered into an agreement with Nilfisk-Advance, Inc. acompany located in Minnesota
U.S.A., to acquire their wooden floor
sanding equipment business.
(1) Purpose for the acquisition
APEC will continue to provide thesame products to Nilfisk’s customer
base and enhance its product line byadding wood floor sanding equipment to its existing vinyl and concrete
product lines. The acquisition will
also allow APEC to promote chemical/equipment packaged sales which
will contribute to the expansion of its
Clean Systems business.
(2) Name of the selling party
Nilfisk-Advance, Inc.
(3) Contents of Business Acquisition
The business assets of a division
engaged in wooden floor sanding
equipment.
(4) Asset and liability amount of business acquisition The amount has notbeen determined at this time.
(5) Purchase price
US$22,350 thousands(6) Business acquisition date
March 31, 2014

5. United States Dollar
Amounts
The Company maintains its account-ing records in Japanese yen. The U.S.
dollar amounts included in the consolidated financial statements andnotes thereto represent the arithmetical results of translating Japanese yen to U.S. dollars at a rate of¥103 = US$1, the approximate effective rate of exchange prevailing on
March 31, 2014. The inclusion of U.S.
dollar amounts is solely for convinience of readers outside Japan andis not intended to imply that yen
amounts could be converted, realized, or settled in U.S. dollars at that,or any other rate.

of the fiscal year ended March 31,
2014. However, revisions to the calculation methods for the retirement
benefit obligation and service costs
are scheduled to be adopted from the
beginning of the fiscal year ending
March 31, 2015.
(3) Impact of adopting revised accounting standard and guidance
The impact is currently evaluated.

6. Standards Issued but Not Yet
Effective
On May 17, 2012, the ASBJ issued“Accounting Standard for Retirement
Benefits” (ASBJ Statement No. 26)
and “Guidance on Accounting Standard for Retirement Benefits” (ASBJ
Guidance No. 25), which replaced the
Accounting Standard for Retirement
Benefits that had been issued by theBusiness Accounting Council in 1998
with an effective date of April 1, 2000
and the other related practical guidance, being followed by partial
amendments from time to timethrough 2009. The major changes arefollows:(1) Overview
The standard provides guidance forthe accounting for unrecognized actuarial differences and unrecognizedprior service costs, the calculation
methods for retirement benefit obligation and service costs, and enhancement of disclosures taking into
consideration improvements to financial reporting and international
trends.
(2) Scheduled date of adoption
The revised accounting standard andguidance were adopted as of the end

26

7. Investments in Unconsolidated Subsidiaries and Affiliates
Among investments in securities, amount in aggregate corresponding to unconsolidated subsidiaries and afficiates at March 31,
2014 and 2013 is as follows:
Millions of Yen

Investments in equity securities
Others2014¥1,802
138

Thousands of U.S.dollars ( Note 5 )2014$17,495
1,340

2013¥1,724138

8. Notes and Accounts Receivable
The Company recognizes settlements of trade notes receivable when the banks actually clear the notes.
As March 31, 2013 was a holiday for financial institutions, the following account includes the unsettled balance of trade notes
receivable due on that date in the accompanying consolidated balance sheet as of March 31, 2014.
Millions of Yen

Trade notes receivable

2014–

Thousands of U.S.dollars ( Note 5 )

2014
–

2013
¥502

9. Assets Pledged as Collateral and Obligations Secured by Collateral
As at March 31, 2014 and 2013, the following assets were pledged as collateral for bank loans:
Millions of Yen

Buildings and structures

2014
¥33

Thousands of U.S.dollars ( Note 5 )

2013
¥27

2014
$320

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

Short-term bank loans
Long-term loans payable

2014
¥19
19
¥39

Thousands of U.S.dollars ( Note 5 )

2013
¥24
32
¥56

2014
$184
184
$379

10. Treasury Stock
The detail of the treasury stock at March 31 for which retirement had not been completed after resolution of the Board of Directors is as follows:
Millions of Yen(1)Book value of treasury stock(2)Type(3)Number of treasury stock

2014
–

2013
¥3,669Common Stock
4,600,000 shares

Thousands of U.S.dollars ( Note 5 )2014–

11. Selling, General, and Administrative Expense
Selling, general, and administrative expenses during the years ended March 31, 2014 and 2013 principally include:
Millions of Yen

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

2014¥1,3601,145
15,659(66)

2013¥1,1981,179
14,017(19)

27

Thousands of U.S.dollars ( Note 5 )2014$13,204
11,117152,029(641)

12. Research and Development Costs
Research and development costs included in general and administrative expenses and manufacturing cost for the years ended
March 31, 2014 and 2013 are as follows:
Millions of Yen

2014¥1,269Research and development costThousands of U.S.dollars ( Note 5 )2014$12,3202013¥1,148

13. Changes in Shareholders’ Equity
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
Decrease
As of March 31, 2014
Common stock (shares)
4,662,695
2,113
4,600,000
64,808(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.
Changes in “Shares issued and outstanding” and “Shares of treasury stock” during the period from April 1, 2012 to March 31, 2013 are as follows:(1) Shares issued and outstanding
Share type
As of April 1, 2012
Increase
Decrease
As of March 31, 2013
Common stock (shares)
81,257,829––
81,257,829(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, 2012
Increase
Decrease
As of March 31, 2013
Common stock (shares)
4,661,851
844–
4,662,695(Reason of change)
The increase in the number of shares is due to the purchases of shares less than one unit.

14. Dividends
Information for dividends for the fiscal year ended March 31, 2014 is as follows:(1) Dividends paid
Resolution

Share type

Ordinary general meeting of shareholders, Common stock
June 27, 2013
“Board of directors meeting,Common stock
November 6, 2013”

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

995

9,660

13

0.126

March 31, 2013 June 28, 2013

995

9,660

13

0.126

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.
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
1,302
12,64117
0.165
March 31, 2014 June 30, 2014
June 27, 2014stock
earnings
Information for dividends for the fiscal year ended March 31, 2013 is as follows:(1) Dividends paid
Total dividend
Resolution
Share type(Millions of Yen)
Ordinary general meeting of shareholders,Common stock
995
June 28, 2012
“Board of directors meeting,Common stock
995
November 5, 2012”

Dividend per share(Yen)

Date of record

13

March 31, 2012

June 29, 201213

September 30, 2012

December 4, 2012

(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
995
13
March 31, 2013
June 27, 201328

Effective date

Effective dateJune 28, 201315. Cash and Cash Equivalents
Reconciliations of cash and cash equivalents to the amounts shown in the consolidated balance sheet as at March 31, 2014 and 2013 are as follows:
Millions of Yen
2014¥35,014
1,658
36,672(3,690)(1,307)¥31,674

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

Thousands of U.S.dollars ( Note 5 )2014$339,942
16,097356,039(35,825)(12,689)$307,515

2013¥29,175
1,241
30,416(2,829)(1,000)¥26,587(Supplemental disclosure of non-cash transactions)
The Company recorded assets of ¥1,569 million ($15,233 thousand) and corresponding obligations of ¥2,002 million ($19,436 thousand) for finance leasetransactions for the year ended March 31, 2014.
Millions of Yen
Thousands of U.S.dollars ( Note 5 )
2014
2013
2014
Leased assets¥1,569¥1,589$15,233
Leased obligations
2,002
1,981
19,43716.

Impairment Loss on Fixed Assets

Impairment loss on fixed assets for the years ended March 31, 2014 and 2013 are summarized as follows:
Millions of Yen

Location

Purpose of use

Category

Amano Cincinnati, Inc.(U.S.A.)

Business use

Machinery and equipment

2014
¥80

Thousands of U.S.dollars ( Note 5 )
2014
$777

2013
–

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 the bookvalues. As a result, the book values of these assets were reduced to the recoverable amount, and the reduction was recognized as impairment losses.
Calculation of Recoverable Amount:
The recoverable amount for the said assets is reasonably estimated based on the net selling price, such as real estate appraised value.

17. Other Comprehensive Income
The following table presents reclassification and tax effects allocated to each component of other comprehensive income for theyears ended March 31, 2014 and 2013:
Net unrealized gains (losses) on other securities:
Amount arising during the year………………………………………………
Reclassification adjustments……………………………………………………
The amount of net unrealized gains (losses) on other securities before tax effect……
Tax effect…………………………………………………………………………
Net unrealized gains (losses) on other securities
Translation adjustments:
Amount arising during the year………………………………………………
Reclassification adjustments……………………………………………………
The amount of translation adjustments before tax effect……………………
Tax effect…………………………………………………………………………
Translation adjustments
Share of other comprehensive income of companies accounted for by the equity method:Amount arising during the year………………………………………………
Total other comprehensive income……………………………………………

Millions of Yen
2014
2013
¥360
¥693
–
3
360
697
(102)
(200)
258
497

Thousands of U.S.dollars ( Note 5 )2014$3,495
–
3,495
(990)
2,505

3,880
–
3,880
–
3,880

1,969
11
1,980
(18)
1,961

37,670–37,670–37,67035¥4,17428¥2,487

340$40,524

18. Leases Commitments(1) Lessees’ accounting
Minimum future lease payments under operating leases subsequent to March 31, 2014 and 2013 for non-cancelable operating leases are summarized as follows:
Millions of Yen
Due within one year
Due over one year
Total

2014
¥107
661
¥769

2013
¥79
65
¥145

29

Thousands of U.S.dollars ( Note 5 )2014$1,0396,417$7,466

(2) Lessors’ accounting
Minimum future lease income under operating leases subsequent to March 31, 2014 and 2013 for non-cancelable operating leases is summarized as follows:
Millions of Yen
Due within one year
Due over one year
Total

2014
¥99
1,004
¥1,104

Thousands of U.S.dollars ( Note 5 )
2014
$961
9,748
$10,718

2013
–
–
–

19. 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 receivable are exposed to credit-related losses in the event of nonperformance by counterparties. Both notes payable
and accounts payable as trade liability are due and payable within one year. Marketable securities and investments in securities are exposed to changes in its market 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 to detect credit deterioration as well as to trigger appropriate minimizing measures at its early stages.
Held-to-maturity investments are subject to the examination and decision of the Funds Management Review Committee and accordingly, investments largely
consists 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 conditions 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 therelationship, 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 fund 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 theprices which are assesed as reasonable by the Company. Since the Company takes contingent variable factors into account when estimating the fair value, itwould vary depending on the different preconditions.

Estimated fair value of financial instruments
Differences between carrying value and estimated fair value as of March 31, 2014 and 2013 are as follows:
Financial instruments whose fair values are hardly estimated are not stated on the following chart; refer to (* 2).

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

Carrying
value¥35,01428,584

Millions of Yen
2014
Estimated
Difference
fair value
in amounts¥35,014–28,584–

Thousands of U.S.dollars ( Note 5 )2014
Carrying
Estimated
Difference
value
fair value
in amounts$339,942$339,942–
277,515
277,515
–

1,300
1,424
4,812
¥71,135

1,296
880
4,812
¥70,588

(¥3)
(543)
–
(¥547)

12,621
13,82546,718$690,631

12,5838,544
46,718$685,320($5,311)¥6,065
6,320¥12,386¥6,065
6,320¥12,386–––$58,883
61,359$120,252$58,883
61,359$120,252–––

Carrying
value¥29,175
24,920Millions of Yen
2013
Estimated
Difference
fair value
in amounts¥29,175–
24,920
–

1,350
1,406
3,999
¥60,851

1,347
965
3,999
¥60,407

(¥2)
(441)
–
(¥444)¥5,633
5,404¥5,633
5,404

–
–
–

¥11,038¥11,03830($38)(5,281)

(NOTES)(* 1): Methods to determine the estimated fair value of financial instruments and other matters related to securities and derivative transactions.
Asset:(1) Cash and bank deposits, and (2) Trade notes and accounts receivable:
Since these items are settled in a short period of time, their carrying values approximate fair value.
(3) Marketable securities and investments in securities:
The fair value of stocks is based on quoted market prices. The fair value of debt securities is based on either quoted market prices or prices provided by thefinancial institutions making markets in these securities. For information on securities classified by holding purpose, please refer to (*5) Held-to-maturity
and other securities with readily determinable fair value as at March 31, 2014 and 2013.						Liability:(4) Trade notes and accounts payable:
Since these items are settled in a short period of time, their carrying value approximates fair value.
(*2): Financial instruments, whose fair values are hardly estimated, are as follows:

Unlisted stocks (Carrying value)

2014
¥756

Millions of Yen
2013
¥935

Thousands of U.S.dollars ( Note 5 )2014$7,340The unlisted securities as stated above are not included in (3) Marketable securities and investments because it is difficult to estimate the fair value based on thequoted market prices in active markets.
(*3) Redemption schedule for monetary claim 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 maturity date
Total

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

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

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
¥29,175
24,9201,200–¥55,295

Millions of Yen
2013
Due after 1 year
Due after 5 years
but within 5 years
but within 10 years
–
–
–
–
¥100
700
¥800

Due
within 1 year
$339,942
277,515
9,709
2,913$630,078

¥50
–
¥50

Thousands of U.S.dollars ( Note 5 )2014
Due after 1 year
Due after 5 years
but within 5 years
but within 10 years––––$2,913
3,883$6,796

31

–
–
–

–
–
–

Due
after 10 years
–
–
–
–
–

Due
after 10 years
–
–
–
–
–

Due
after 10 years
–
–
–
–
–

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

Due within 1 year The second year–¥296
¥1,364
1,147¥1,364¥1,4442014
The third year The fourth year
¥1,130¥69924
657¥2,055¥726

The fifth year
¥500
395
¥895

Thereafter
¥136
287
¥423

Millions of Yen

2013
Long-term loan payable
Lease obligations
Total

Due within 1 year The second year–
¥189
¥1,162
1,102¥1,162¥1,291

The third year
¥185
786
¥971

The fourth year
¥869
563
¥1,433

The fifth year
–
¥299
¥299

Thereafter
–
¥382
¥382

Long-term loan payable
Lease obligations
Total

Thousands of U.S.dollars ( Note 5 )2014
Due within 1 year The second year The third year The fourth year
The fifth year–
$2,874$10,971$670$4,854$13,243
11,136
8,971
6,379
3,835
$13,243$14,019$19,951$7,049$8,689Thereafter$1,3202,786$4,107(*5) Held-to-maturity and other securities with readily determinable fair value as at March 31, 2014 and 2013 are as follows:
Millions of Yen
2014

Held-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)¥1,300¥1,296(¥3)

Carrying value

Acquisition
cost

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

1,495
481
1,977
¥4,812

1,572
483
2,056
¥4,011$12,621$12,583($29)

Carrying value

Acquisition
cost

Unrealized
gains (losses)

¥864
15
879

$21,942
5,573
27,515$13,553
5,427
18,981$8,388
146
8,534

(76)
(1)
(78)
¥800

14,515
4,670
19,194$46,718

15,262
4,689
19,961$38,942

(738)
(10)
(757)
$7,767

Millions of Yen
2013
Carrying value Acquisition cost
Held-to-maturity¥1,350

Unrealized
gains (losses)(¥2)

Fair value

Unrealized
gains (losses)¥1,679
310
1,989

¥961
300
1,261

¥718
10
728

1,614
395
2,009
¥3,999

1,901
400
2,301
¥3,562

(287)
(4)
(292)
¥436

Carrying value
Other securities with carrying
value exceeding acquisition cost
StocksOther
		Subtotal
Other securities with carrying
value not exceeding acquisition cost
StocksOther
		Subtotal
		Total¥1,34732

Thousands of U.S.dollars ( Note 5 )2014
Unrealized
Carrying value
Fair value
gains (losses)

20. Impairment Loss on Securities
The impairment losses on securities for the years ended March 31, 2014 and 2013 are summarized as follows:
Millions of Yen
2014
–
–
–

Other securities, marketableNon-marketable equity securities
Investments in subsidiaries and affiliates

2013
¥4
1
238

Thousands of
U.S.dollars ( Note 5 )
2014
–
–
–

In case securities whose fair values at the year-end are less than 50% of the acquisition costs, or are more than 50% but less than 70% and deemed to be unrecoverable, the impairment losses are recognized.

21. 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 multiemployer contributory funded pension plan as a supplement to its existing
retirement benefit scheme.
The funded status of the multiemployer contributory funded pension plans as at March 31, 2013, to which contributions are recorded as net periodic retirement
benefit costs by the Company is summarized as follows:

Fair value of plan assets
Benefit obligation in the calculation of pension financing
Difference
Companies' contribution percentage for multiemployer
contributory funded pension plans*Millions of Yen
2013¥53,360
70,990(17,630)
21.8%*This shows the Companies’ portion of the total estimated annual contribution to the plans, which is not necessary equal to the actual
percentage of the Companies’ portion against the funded status in the table above.
The components of accrued retirement benefits to employees as at March 31, 2013 are as follows:

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

Millions of Yen
2013¥11,360(7,713)
3,647(1,054)21
57¥2,670The components of retirement benefit expenses for the year ended March 31, 2013 are as follows:

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

Millions of Yen
2013
¥663
161
(164)
(3)
211
523
319
¥1,711

The assumptions used for calculation of retirement benefits for the year ended March 31, 2013 are as follows:
Millions of Yen
2013
Method of attribution of estimated retirement benefits toperiods of employee service
Discount rate
Expected return on plan assets
Amortization period for unrecognized prior service cost
Amortization period for unrecognized actuarial difference

Straight-line method
1.5%
2.5%
10 years
10 years33

In addition, certain subsidiaries have lump-sum payment plans and defined benefit corporate pension plan. They calculate the retirement benefit expenses, assets
and liabilities for retirement benefits by means of a simplified method.
The changes in the retirement benefit obligation during the year ended March 31, 2014 are as follows:
Millions of Yen
2014¥11,091
626
174
489
(567)
(12)
32
¥11,834

Retirement benefit obligation at April 1, 2013
Service cost
Interest cost
Actuarial loss
Retirement benefit paid
Prior service cost
Other
Retirement benefit obligation at March 31, 2014

Thousands of
U.S.dollars ( Note 5 )2014$107,680
6,078
1,689
4,748
(5,505)(117)
311$114,893

The changes in plan assets during the year ended March 31, 2014 are as follows:
Millions of Yen
2014¥7,586
189
80
541
(524)
2
¥7,876

Plan assets at April 1, 2013
Expected return on plan assets
Acturial loss
Contributions by the Company
Retirement benefits paid
Other
Plan assets at March 31, 2014

Thousands of
U.S.dollars ( Note 5 )2014$73,650
1,835
777
5,252
(5,087)
19$76,466

The following table sets forth the funded status of the plans and the amounts recognized in the consolidated balance sheet as of March
31, 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

2014¥11,716(7,876)
3,839
118
3,958

Thousands of
U.S.dollars ( Note 5 )2014$113,748(76,466)
37,272
1,146
38,427

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

3,958–¥3,95838,427–$38,427

Millions of Yen

Thousands of
U.S.dollars ( Note 5 )2014$6,078
1,689(1,835)
1,786(155)$7,573

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

The components of retirement benefit expense for the year ended March 31, 2014 are as follows:

2014
¥626
174
(189)
184
(16)
¥780

Service cost
Interest cost
Expected return on plan assets
Amortization of actuarial loss
Amortization of prior service cost
Retirement benefit expense
Unrecognized prior service cost and unrecognized actuarial loss included in accumulated othercomprehensive income(before tax effect) as of March 31, 2014 are as follows:

Millions of Yen
2014¥17(1,278)(¥1,261)

Unrecognized prior service cost
Unrecognized actuarial loss
Total

34

Thousands of
U.S.dollars ( Note 5 )
2014
$165
(12,408)($12,243)

The fair value of plan assets, by major category, as a percentage of total plan assets as of March 31, 2014 are as follows:
2014
9%
77%
12%
2%
100%

General accounts
Bonds
StocksOther
Total

The expected return on 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.
2014
1.6%
2.5%

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

In defined benefit plans of applying the simplified method, the changes in the retirement benefit obligation during the year ended March
31, 2014 are as follows:
Millions of Yen
2014
¥142
21
(14)
(22)
0
¥126

Liability for retirement benefit at April 1, 2013
Retirement benefit expense
Retirement benefit paid
Contributions to plan
Other
Liability for retirement benefit at March 31, 2014

Thousands of
U.S.dollars ( Note 5 )2014$1,379
204
(136)
(214)
0
$1,223

The following table sets forth the funded status of the plans and the amounts recognized in the consolidated balance sheet as of March 31,
2014 for the Company’s and the consolidated subsidiaries’ defined benefits plans:
Thousands ofMillions of Yen
U.S.dollars ( Note 5 )Unfunded retirement benefit obligation
Net liability for retirement benefits in the balance sheet

2014
¥137
(166)
(28)
155
126

2014
$1,330(1,612)
(272)
1,505
1,223

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

200
(73)
126

1,942
(709)
1,223

Funded retirement benefit obligation
Plan assets at fair value

Retirement benefit expenses, which are calculated in simplified method during the year ended March 31, 2014 are as follows:
Millions of Yen
2014
¥21

Retirement benefit expense

Thousands of
U.S.dollars ( Note 5 )
2014
$204

Contributions to defined contribution plans of the Company and its consolidated subsidiaries during the year ended March 31, 2014 are as
follows:											Millions of Yen
2014
¥335

Contributions to defined contribution plans

35

Thousands of
U.S.dollars ( Note 5 )
2014
$3252

22. Income Taxes
Deferred tax assets and liabilities (both current and non-current) as at March 31, 2014 and 2013 consisted of the following elements:
Millions of Yen

Thousands of U.S.dollars(Note 5)

2014

2013

2014

Deferred tax assets:
Accrued enterprise tax
Accrued employees' bonuses
Accounts payable and long-term accounts payable
Accrued retirement benefits to employees
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

¥181
731
95
–
1,445
1,173
599
128
641
935
(2,175)¥3,756

¥114
679
78
949
–
941
546
120
597
833
(1,721)¥3,139$1,757
7,097
922–
14,02911,388
5,816
1,243
6,223
9,078
(21,117)$36,466

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

(14)
(66)
(223)
(176)
(481)
¥3,275

(15)
(96)
(121)
(177)
(410)
¥2,728(136)(641)(2,165)(1,709)(4,670)$31,796

2014
38.0%

2013
38.0%

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%

0.5
(5.7)
1.1
2.3
5.6
(0.1)
(0.3)
3.0
–
(1.8)
0.3
1.6
44.5%

Reconciliation of 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 rate36

23. 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. Environmental system business(1) Sales, profits or losses, assets and other items by reportable segments
Millions of Yen
2014
Reportable segments
Time information Environment
Total
system business system businessNet sales:
Sales to third parties
Intersegment sales and transfers
Total
Segment profit or loss
Segment assets
Depreciation and amortization
Impairment loss for fixed assets
Investment in equity-method affilities
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
21,007436––
272¥102,131–
102,131
11,69078,344
3,290
80
1,646
5,781

Adjustments/
Eliminations

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

Adjustments/
Eliminations

Consolidated–––(2,809)40,216396–
131¥90,295–
90,295
7,329
109,476
3,558
1,614
4,713

Millions of Yen
2013
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
Investment in equity-method affilities
Increase in tangible and intangible fixed assets¥65,535–
65,535
7,845
49,760
2,742
1,614
4,202

¥24,760–
24,7602,292
19,498
418
–
379

Total
¥90,295–
90,295
10,13869,259
3,161
1,614
4,582

Thousands of U.S. dollars (Note 5)2014
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 affilities
Increase in tangible and intangible fixed assets$736,660–
736,660
91,815556,668
27,712785
15,98253,484$254,904–
254,904
21,688203,959
4,238
–
–
2,647

37

$991,565–
991,565
113,504
760,627
31,950785
15,98256,131–––(27,813)431,974
4,087
–
–
1,299

Consolidated$991,565–
991,565
85,6901,192,602
36,038785
15,98257,430(2) Related Information
Geographic Segments
Information by geographic region for the years ended March 31, 2014 and 2013 are summarized as follows:
Thousands of U.S.dollars(Note 5)

Millions of Yen

Net sales:
Japan
North America
OthersTotal

2014¥72,937
12,484
16,709¥102,131

2014$708,126
121,212
162,225$991,565

2013¥66,902
10,086
13,306¥90,295

Thousands of U.S.dollars(Note 5)

Millions of Yen

Tangible fixed assets:
Japan
OthersTotal

2014¥21,3242,920¥24,2442014$207,038
28,349$235,388

2013¥20,567
2,418¥22,985(3) Information on both “amortization of goodwill” and “unamortized balance” by reportable segments forthe years ended March 31, 2014 and 2013 are summarized as follows:

Amortization of goodwill
Unamortized balance

Millions of Yen
2014
Reportable segments
Time information Environment
Total
system business system business
¥668
–
¥668
¥5,128–¥5,128Eliminations/
Corporate
–
–

Total
¥668
¥5,128Millions of Yen
2013

Amortization of goodwill
Unamortized balance

Reportable segments
Time information
Environment
system business system business¥561–¥4,679–Amortization of goodwill
Unamortized balance

Thousands of U.S.dollars (Note 5)2014
Reportable segments
Eliminations/Time information Environment
Corporate
Total
system business system business$6,486–$6,486––$49,795–$49,795

38

Total
¥561
¥4,679Eliminations/
Corporate
–
–

Total
¥561
¥4,679

Total$6,486$49,795

24. Per Share Data
Net assets and net income per share as at and for the year ended March 31, 2014 and 2013 are as follows:(1) Net assets per share
Yen

Net assets per share2014¥1,084.44

U.S.dollars (Note 5)2013¥998.092014$10.529

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

2014¥83,482422(422)
83,060Total 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 stock2013¥76,718268(268)
76,449Thousands of U.S.dollars(Note 5)

2014
$810,505
4,097(4,097)
806,408

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

2014
76,593,021

2013
76,595,134(2) Net income per share
Yen

2014
¥69.19Net income per share

U.S.dollars (Note 5)2013¥52.042014
0.672

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

2014¥5,299¥5,299Net income in the consolidated statement of income
Net income relating to common stock2013¥3,986¥3,986
SharesAverage number of shares ofcommon stock outstanding during the term

2014

2013

76,594,071

76,595,533

39

Thousands of U.S.dollars(Note 5)

2014
$51,447$51,447

Corporate Data
Board of Directors

Domestic Operations

Chairman & Representative Director

HEAD OFFICESYSTEM CENTERS

Kaoru HARUTA

275 Mamedocho, Kohoku-ku, Yokohama,

SAPPORO System Center

Kanagawa, JAPAN 222-8558

SENDAI System Center

President & Representative Director

Izumi NAKAJIMA
Executive Officer & Representative Director

OMIYA System Center
FACILITIESTOKYO System Center

SAGAMIHARA Facility

SHINAGAWA System Center

HOSOE Facility

SHINJUKU System Center

Haruhiko YAMAGUCHIWEST TOKYO System Center
SALES OFFICESCHIBA System Center

Director & Managing Operating Officer

71 Sales Officers Located in major cities,

NAGANO System Center

Minoru KOYAMA

including

NIIGATA System Center

Hiroshi SHIRAISHI
Toru UENO

KANAGAWA System Center
SAPPORO Office

SHIZUOKA System Center

SENDAI Office

NAGOYA System Center

Director & Operating Officer

OMIYA Office

TOYOTA System Center

Isao TERASAKITOKYO Office

KANAZAWA System Center

Takeshi AKAGINAGANO Office

OSAKA System Center

NIIGATA Office

HIGASHI OSAKA System Center(Outside) Director

YOKOHAMA Office

KOBE System Center

Isao KISHI

HAMAMATSU Office

HIROSHIMA System Center

NAGOYA Office

TAKAMATSU System Center(Full-time) Audit & Supervisory Board Member

KANAZAWA Office

FUKUOKA System Center

Tsuyoshi FUJIWARA

KYOTO Office

Naoki NAKADAOSAKA Office

DOMESTIC SUBSIDIARIESOKAYAMA Office

AMANO MANAGEMENT SERVICE CORPORATION(Outside) Audit & Supervisory Board Member

HIROSHIMA Office

AMANO MAINTENANCE ENGINEERING CORPORATION

Yoshiyuki SATO

TAKAMATSU Office

AMANO BUSINESS SOLUTIONS CORPORATION

Takehide ITONAGAFUKUOKA Office

ENVIRONMENTAL TECHNOLOGY CO., LTD.
AMANO MUSASHI ELECTRIC CORPORATIONAMANO AGENCY CORPORATIONManaging Operating Officer

Masamiki KONNO
Kenji KOHORI
Bungo NOGAWA
Operating Officer

Kunihiro IHARA
Morio KANEKO
Minoru YONEZAWA
Yasuhiro SASAYA
Tatsuo NIIHO
Masahiko MORITA
Myeong-Jin JEON

40

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

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

11.AMANO TIME&PARKING SPAIN S.A.

20.		 AMANO PARKING SERVICE LTD.

		C/. Plomo, N°5-7, Planta 2 - Oficina 2 08038 Barcelona, Espana

		Unit 1,16/F, Wealthy Plaza, 138 Shau Kei
Wan Road, Hong Kong

12. HOROSMART, S.A.
		CORPORATE HEADQUARTERS

21.		 AMANO MALAYSIA SDN.BHD.

		Tour CIT, 3 rue de l’Arrivée 75015 Paris,
France		No.12, Jalan Pengacara U1/48, Temasya
Industrial Park 40150 Shah Alam, Selangor Darul Ehsan, Malaysia

13. HOROQUARTZ, S.A.
		HEAD OFFICE

22.		 AMANO TIME&AIR SINGAPORE PTE.LTD.

		Tour CIT, 3 rue de l’Arrivée 75015 Paris,
France		130 Commerce Blvd. Loveland, Ohio
45140-7726 U.S.A.

14. HOROQUARTZ MAROC, S.A.

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

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

5. AMANO PIONEER ECLIPSE CORPORATION

15.		 SCOPUS-OMNIBADGES, S.A.

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

		25 rue Nicolas Leblanc, 33700 Mérignac

4. AMANO CINCINNATI CANADA INC.

16.		 AMANO KOREA CORPORATION		HEAD OFFICE

6. AMANO McGANN, INC.
		HEAD OFFICE		Rm.407, Woolim e-Biz Center, 43, Yangsan-ro, Yeongdeungpo-Gu, Seoul,Korea

		2699 Patton Road Roseville, MN 55113,
U.S.A.

23.		 PT.AMANO INDONESIA

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

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

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

7. ACCU-TIME SYSTEMS, INC.

		420 Somers Road, Ellington, Connecticut
06029 U.S.A.

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

8. ACCU-TECH SYSTEMS, Ltd.

		C1 Caerphilly Business Park, Caerphilly
Mid Glamorgan CF83 3ED, U.K.

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

9. AMANO EUROPE HOLDINGS, N.V.
		CORPORATE HEADQUARTERS

		14F Nextage Business Center, No.1111
Pudong Road(South), Pudong New Area,
Shanghai, China 200120

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

19.		 AMANO MANUFACTURING(SHANGHAI)CO.,LTD.

		No, 128, 2232 Alley, Chuanliugong Rd,
Shanghai, China

		Westerring 2, 3600 Genk, Belgium

812,13,15

		BIk 213 Henderson Road, #04-06/07
Henderson Industrial Park Singapore
159553

9,10
6

11
16

14

AMANO CORPORATION

17,18,19
20
21

24
22
23

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/

CAT-115300
K9907A3-2014.07