FINANCIAL REPORT
April 2011 March 2012

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, the Group seeks to become a global niche
leader by exploring new market frontiers (advancing aggressively into emerging anduntapped markets), developing multi-disciplinary business operations on a location-bylocation basis, and establishing new business domains. We are pursuing a new global
growth strategy designed to maximize our corporate value.
Priority issues under the new plan are listed below.

11. North American and European markets
North America: In the parking system business, we will merge Amano McGann’s parking management software with the Amano Group’s software and hardware, introduce
new parking systems into the market, and strengthen direct sales structures to enable
us to work more closely with customers when proposing solutions. These efforts aredesigned to build upon our business foundations, which are second to none in North
America. In our time information system business, we will continue to scale up ouroperations by adding new products alongside the wide array of time information management terminals and the blue-chip customer base that Accu-Time Systems enjoys. Byenhancing the local production and distribution of oil mist collectors through Amano
Pioneer Eclipse, we will take a step toward fortifying our operations in the environment
system business.
Europe: In the time information system business, we will continue to enhance
Horosmart’s ability to offer holistic solutions, and to expand its blue-chip customer
base. These efforts are aimed at cementing our position as number one at the high endof the market in France and at increasing our visibility and expanding further into othermarkets across Europe. In the parking system business, we will step up sales of lowpriced system products, focusing on the UK and the three Benelux countries, in orderto build a stronger operations foundation.
2. Asian, Latin American and other emerging markets
Asia: In the environment system business, we will enhance our ability to offer products
and render services to Japanese companies operating outside Japan in other parts ofAsia by deepening ties between our Group companies across Asia and our head officein Japan. We will also expand our local production capabilities in order to enhance
our cost competitiveness. In the parking system business, we will seek to further scale
up our South Korean and Malaysian operations, as well as to aggressively promote thedevelopment of business operations in China, Taiwan, and other Asian countries.
Latin America: In light of the local market’s future growth potential, we will aggressively allocate a higher proportion of our managerial resources to this area, including
those engaged in the commencement of local production, in order to explore the market frontiers in the information system, parking system, and environment system businesses.
3. Japanese market
Japan: We will reinforce ties among Group companies and develop high-quality comprehensive service offerings (combining products and services) across all business fields
to expand our business domain, create new markets, and enhance our cost competitiveness. These efforts should align our entire group to work cohesively towards maximizing its corporate value.
[2] Numerical Targets
Under our new medium-term business plan, we aim to achieve at least ¥103 billion
in net sales and ¥10 billion in operating profit in the final year of the plan, which ends
March 31, 2014.

2

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 (¥13 interim and ¥13 year-end),
together with appropriate results-based distributions of profits and flexible purchasing oftreasury stock. The Company aims to maintain a payout ratio of 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 ¥13 per share, unchanged from the amount paid at the endof the previous year. As a result, the annual per-share dividend will be ¥26 (including the¥13 per share paid as the interim dividend). This corresponds to a dividend payout ratioof 82.5% and a 2.8% ratio of dividends to net assets on a consolidated basis.
With regard to the dividend for the next fiscal year, in line with our Basic Policy on Distribution of Profits and in view of our Outlook for Fiscal Year Ending March 31, 2013, we
aim to pay an annual per-share dividend of ¥26 (interim dividend of ¥13, and year-end
dividend of ¥13).
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, 2012

During the fiscal year ended March
31, 2012, the Japanese economy
was on a recovery track after the
restoration of supply chains thatwere damaged by the Great East
Japan Ear thquake. However, theeconomy continued to struggle under uncertain and difficult conditions
due to the slowdown in the global
economy and the rapid appreciationof the yen that were caused by the
emerging European sovereign debt
crisis.

Amid this business environment, theAmano Group worked, in accordance with the new global growthstrategy outlined in its new mediumterm business plan, on global market
and product development as well as
enhancement of its capacity to provide holistic solutions. The Amano
Group also concentrated on thoroughly uncovering customer needs,
and strove to reduce sales costs andselling, general and administrative
expenses.

As a result of the above, during the
fiscal year under review, the Company recorded sales of ¥88,147
million, up by 5.8% year-on-year. Operating profit increased by 35.0% to¥5,917 million, ordinary profit went
up by 31.5% to ¥6,322 million, andnet income decreased by 21.2% to¥2,415 million.
The following is a breakdown ofsales by business division.

Sales by business division(Unit: Millions of yen)

FY2010FY2011year endedMarch 31, 2011

year endedMarch 31, 2012

AmountRatio (%)

AmountRatio (%)

AmountInformation Systems

18,89022.7

19,569

22.2

679

3.6

Time Management Equipment

4,407

5.3

4,245

4.8

(162)

(3.7)

Parking Systems

38,49346.2

40,794

46.3

2,301

6.0

Subtotal

61,79074.2

64,608

73.3

2,818

4.6

Environmental Systems

14,14417.0

16,374

18.6

2,230

15.8

Clean Systems

7,369

8.8

7,165

8.1

(204)

(2.8)

Subtotal

21,51325.8

23,539

26.7

2,026

9.4

Total

83,303100.0

88,147

100.0

4,844

5.8

Change%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 Equipment:
Time recorders and time stamps• Parking Systems:
Vehicle- and bicycle-parking space
management systems and parking
management services

Information Systems
Although this business division continued to struggle under difficult
conditions in Japan—which included
a prolonged reduction in information-related investments and intensifying competition in the market—
the markets for data centers andcloud computing have grown due
to the influence of the Great East
Japan Earthquake, as part of companies’ preparations for their BusinessContingency Plans (BCP).
In response to these changes in themarket environment, the Company
concentrated on uncovering demand by launching hosting services,
proactively developing proposals
that offer comprehensive solutions to issues concerning both theownership of systems and the useof systems, and strengthening ourbusiness support system for systems
engineers.
During the fiscal year under review,
hardware sales in Japan decreasedby ¥258 million (4.9%) year-on-year,
software sales decreased by ¥3 million (0.1%), and sales generated bymaintenance contracts and supplies
services increased by ¥147 million(4.7%). The decrease in hardware

sales was attributed to a decreasein both existing large-scale projects
and in new projects. As a result, T&A
system sales were down by ¥371
million (4.4%), while access control
system sales increased by ¥81 million (7.5%).
Overall overseas sales increased by¥734 million (11.4%). Both the salesof Accu-Time Systems in Nor th
America and the sales of Horosmart
S.A. in Europe remained firm.
As a net result of the above, overallsales in this business division totaled¥19,569 million, representing an increase of 3.6% year-on-year.

SX-150Time management equipment
In Japan, this business division continued to struggle under difficult
conditions. There was a decreasein new store openings and replacement demand was stagnant,despite the demand for reconstruction after the Great East Japan Earthquake.
In this mar ket environment, theCompany concentr ated on uncovering new demand by building
new sales channels and strengthening sales promotion activities, inorder to enhance and expand its
customer base.
In Japan, overall sales for the fiscal year under review decreasedby ¥52 million (1.5%) year-onyear due to a decrease in exports
to Asia, although domestic sales

5

increased. Sales for all of Nor thAmer ica, Europe and Asia also
dropped. As a result, overall overseas sales decreased by ¥197 million (13.7%).
As a result of the above, the time
management equipment businessdivision generated sales totaling¥4,245 million, down by 3.7% yearon-year.

Parking Systems
In the midst of the diversificationof parking lot utilization systems, as
typified by the broader installationof charging stations for electric vehicles and the introduction of carsharing services in Japan, this division
has been working to reduce thecosts of parking lot management
and to promote environmentallyfriendly initiatives, such as employing
LED lighting equipment in parking
lots to reduce energy consumption
and installing solar panels to achieve
greater energy self-sufficiency.
In response to these changes in themarket environment, the Company
has, in cooperation with its Group
companies in Japan, stepped up its
efforts to provide its customers withsolutions, and has focused its efforts
on uncovering demand for the replacement of existing systems. The
Company has also made efforts to
expand into new markets for lane
control systems and exclusive gate
systems, with its watchwords being
safety, security, environmental awareness and increased convenience.
In Japan, sales of car parking system
devices during the fiscal year underreview increased by ¥2,095 million(14.8%) year-on-year, thanks to anincrease in the number of projects
involving large and small parking lot
systems. Revenues from maintenance contracts and supplies services increased by ¥23 million (0.3%).
The number of parking spaces managed by the Group subsidiary Amano Management Service Corporation in its commissioned parking lot
management business increased by
32,300 (16.3%) from the end of theprevious fiscal year.
Overall overseas sales decreasedby ¥42 million (0.4%). Sales for
Nor th America declined in termsof Japanese yen due to fluctuations
in exchange rates, although sales
increased on a local currency basis. Sales for Europe declined due
to sluggish demand. Sales for Asia
increased, as Korea continued toshow strong sales.
As a net result of the above, theparking systems business division
provided sales totaling ¥40,794 million, an increase of 6.0% year-onyear.

GT-4700GP

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, although
capital investment in Japan slowed
due to the impact of the Great East
Japan Earthquake, capital investment
by Japanese-affiliated companies operating in Asia, including China, hasbeen increasing, and it has been apparent in the business environmentthat demand has shifted from Japanto the rest of the world.
In this mar ket environment, theCompany has focused on expanding
demand by proactively shifting its
managerial resources. The Company’s efforts included increasing thenumber of local staff, establishingcloser cooperation with overseas
Group companies, and expanding
production in China in order tobolster systems for selling products
and services to businesses operating
overseas.
During the fiscal year under review, sales of standard equipment
increased by ¥423 million (8.6%)
year-on-year, large-scale systems by¥1,282 million (30.6%), and maintenance contracts and supply servicesby ¥281 million (8.6%), as a resultof our capturing the demand forenvironmental systems of the in-6

ternational operations of Japanesecompanies that have expanded into
overseas markets.
Overall overseas sales increased by¥429 million (30.2%) year-on-year
due to increased orders for bothstandard equipment and large-scale
systems, because capital investments
by Japanese-affiliated companies in
Asian markets remained strong.
As a result of the above, sales of thisbusiness division totaled ¥16,374
million, up by 15.8% year-on-year.

MJ-5

Clean Systems
This business division continued
to struggle in Japan under difficult
conditions caused by the impact of
prolonged reductions in cleaning
management costs, though there
was a trend among major distribution and retail companies to expand
their store networks.
To tackle this market environment, theCompany focused on uncovering new
demand by providing proposals forthe achievement of total cost reductions using a new floor construction
system and maintenance ser vices,enhancing demonstrations of actualmachines, and launching new models
of cleaning machines and polishers
in order to improve both work efficiency and quality.

Domestic sales of cleaning equipment during the fiscal year underreview decreased by ¥104 million(5.0%) year-on-year, and revenue
from maintenance contracts andsupplies increased by ¥98 million(3.4%).
Overall overseas sales decreasedby ¥84 million (5.2%) year-on-year.
Sales for Nor th America grew interms of local currencies but decreased in terms of Japanese yen
due to fluctuations in exchange
rates.

Analysis of Financial Condition(i) Assets, Liabilities, and Net Assets• Assets
Total assets as of March 31, 2012,amounted to ¥103,478 million, up by¥545 million from the previous fiscal
year-end. Current assets increasedby ¥3,476 million year-on-year. Thiswas chiefly due to a ¥2,609 million
increase in notes and accounts receivable-trade and a ¥792 million increasein cash and bank deposits. Fixed assets
decreased by ¥2,931 million year-onyear. This was attributable primarily toa ¥1,899 million decrease in intangible
fixed assets and a ¥543 million decrease in investment securities.
• Liabilities
Total liabilities at the fiscal year-end
amounted to ¥31,286 million, up by

As a result of the above, sales inthis segment totaled ¥7,165 million,
down by 2.8% year-on-year.

CW-400T¥914 million year-on-year. Current
liabilities decreased by ¥564 million
year-on-year. This was chiefly due to adecrease of ¥1,546 million in shortterm bank loans, despite an increaseof ¥355 million in trade notes andaccounts payable and an increase of¥324 million in lease obligations. Fixedliabilities increased by ¥1,478 million
year-on-year. The principal factors behind this were an increase of ¥1,280
million in long-term bank loans and anincrease of ¥803 million in lease obligations, despite a decrease of ¥470
million in accrued retirement benefits
for employees.

eign currency translation adjustments
and other factors, despite an increaseof ¥423 million in shareholders’ equity
due to an increase in retained earnings.

• Net Assets
Total net assets as of March 31, 2012amounted to ¥72,192 million, downby ¥369 million from the previous
fiscal year-end. This was primarily due
to a decrease of ¥818 million in total
accumulated other comprehensive income resulting from a decrease in for-Net cash provided by operating activities totaled ¥5,974 million. This
was attributable primarily to income
before income taxes amounting to¥5,510 million and depreciation andamortization amounting to ¥4,030
million, despite income taxes payments amounting to ¥3,082 million.

7(ii) Cash Flows
Consolidated cash and cash equivalents increased by ¥1,308 million fromthe previous fiscal year-end, to a totalof ¥25,922 million on March 31, 2012.
The status of each type of cash flowat the year-end and the underlying
factors are as follows.
(1) Cash flow from operating activities

(2) Cash flow from investing activities

intangible fixed assets. These outflows
more than offset proceeds of ¥4,673
million from the withdrawal of time
deposits and ¥2,241 million from theredemption of securities.

Net cash used in investing activities
totaled (¥1,535) million. This waslargely due to expenditures of ¥4,377
million for the placement of time deposits, ¥2,054 million for the acquisition of securities, ¥1,265 million for
the acquisition of tangible fixed assets,and ¥842 million for the acquisition of(3) Cash flow from financing activities
Net cash used in financing activities
totaled (¥3,051) million. This waschiefly due to expenditures of ¥1,992
million for the payment of cash dividends, ¥1,729 million for the repayment of short-term bank loans, and¥854 million for the repayment offinance lease obligations, despite proceeds of ¥1,550 million from longterm debt.

Reference: Trend of cash flow indicators
As of Mar. 31, 2008

As of Mar. 31, 2009

As of Mar. 31, 2010

As of Mar. 31, 2011

As of Mar. 31, 2012

Equity ratio (%)

73.0

72.9

73.4

70.3

69.6

Fair value equity ratio (%)

70.6

58.8

64.7

59.3

56.9

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

17.5

24.1

17.1

31.4

50.2

Interest coverage ratio

166.6

200.7

250.6

275.2

158.1

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, 2013
During the fiscal year ending March
31, 2013, we forecast that theJapanese economy will continue
to recover at a modest pace, as
the world economy is expected toshow stable growth led by China
and other emerging countries anddemand for post-earthquake reconstruction is expected to gradually
surface, despite concerns regarding the slowdown in the growth ofWestern economies.
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 linewith these four fundamental strategies, we will pursue our consolidated
growth strategy on a global scale toensure sustainable growth and the8continual improvement of profitability with a view to maximizing thecorporate value of Amano Corporation.
The following business results areprojected for the fiscal year ending
March 31, 2013: net sales of ¥93,500
million, operating profit of ¥7,000
million, ordinar y profit of ¥7,400
million, and net income of ¥3,800
million. These projections assume
currency exchange rates of ¥80 to
the US dollar and ¥105 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 9, 2012).
(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, 2012,
the time information system business accounted for 73.3% of total
sales, and the environment systembusiness accounted for 26.7%. Before the deduction of unallocatedexpenses, the time information sys-

tem business contributed 74.6% tooperating profit, while the environment system business contributed
25.4%. In terms of weighted averagesales over the last five years, thetime information system businessaccounted for 71.9% of total sales
and 72.7% 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.

9(iii) Information security
In the course of providing systemsolutions and application ser viceprovider services, the Amano Grouphandles confidential information,such as personal information concerning, or provided by, customers.
In view of this, the Group has developed a structure for the management of confidential information,
conducts thorough staff training on
the handling of confidential information, and uses software for the protection of confidential information
with the aim of preventing network
access to confidential informationand the physical removal of data andinformation. To that end, it has alsoestablished an Information Security
Management Committee to ensure
a foolproof structure is in place.
Nevertheless, the occurrence of an
unforeseen situation that results in
information of the kind describedabove being disclosed externallycould have a material impact on theGroup’s business performance due
to factors such as loss of confidence.

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 business
Given the continuing efforts by the laborauthorities to more strictly monitor unpaid over time and long working hours(overworking) in order to eradicate thesepractices and an increasing need to deal
with risks surrounding employment (suchas industrial court cases resulting from deteriorating employment conditions), there isstrong potential demand among companies
to establish or rebuild T&A systems. Our
aim is to create a company-wide labor time
management system to optimize business
operations by reducing working hours, improving work efficiency, cutting costs, etc. In
addition, we aim to strengthen measures forcompliance toward appropriately managing
working hours. However, market conditions
remain tough, reflecting prolonged reductions in information-related investments,
intensifying competition in the market, andother factors. Meanwhile, the business environment in which this segment operates
has seen a significant shift from companies
owning systems to simply utilizing them, withan increasingly prominent movement in theindustry toward cloud computing.
In this market environment, we will focus on
spurring latent demand in our solutions business, which is targeted at large companies,
by strengthening our competitive advantage
with enhanced software functions, and reinforcing our marketing structures with collaboration between sales staff and systems
engineers. In addition, we will actively makeproposals for comprehensive solutions,
including hosting services, by strengthening
alliances with Group companies in Japanin order to respond to the changes of thetimes.
To enhance the profitability of this business,
we will strictly manage revenue from our solutions business targeted at large companies,
enhance our project management systems,
cut costs by standardizing system software,and expand sales of standard software packages to small and medium-scale business establishments, so as to boost earnings capacity.

Overseas, we will continue to scale up ouroperations by adding new products alongside the wide array of time information
management terminals and the blue-chipcustomer base that Accu-Time Systems enjoys. In addition, we will work on establishinga global supply system and reducing development costs by expanding our hardware
lineup. As a means of expanding our business, we will also extend our sales channels
for software products from Horosmart, S.A.
(France) across Europe and reinforce ourorganizational structures toward globalization.

•Parking systems business
The parking system business is seeing thebusiness environment in which it operates
change significantly. For example, the broader
installation of charging stations for electricvehicles, programs to reduce greenhouse gas
emissions, and the introduction of car sharing
services designed to ease traffic congestion
have led to a diversification of parking lot
operation styles. Meanwhile, initiatives havebeen developed to enhance the quality ofcustomer service offerings, to reduce electricity consumption through the use of LED
lighting, and to operate more environmentfriendly parking spaces through measures
such as the installation of solar panels.
In this environment, we will focus on making
proposals from the customer’s perspectivewith an emphasis on areas such as higher
profitability and efficiency in parking space
management. We will steadily meet theneeds of existing customers by offering highvalue-added products with network capabilities and inbuilt IT functions and forging
ahead with the holistic solutions business,
including maintenance and parking lot management services, in close collaboration withGroup companies.
We will seek to revitalize and expand themarket for bicycle parking, which has beenhighlighted as a result of the problem ofabandoned bicycles, by proactively making
proposals on ecology-oriented initiatives, including rent-a-cycles and community bicycle
systems. We also aim to expand the newmarket that has emerged for exclusive gate
systems for controlling access to sites suchas factories, with an emphasis on safety andsecurity and on making proposals regarding
labor-savings and rationalization.
Overseas, we aim to expand our businessand establish ourselves as the top manu-

10

facturer of parking systems in the North
American market, leveraging the strengths of
Amano McGann, Inc. to further boost sales
by building closer relationships with customers. In Europe, we will step up our sales of
low-priced system products, focusing on
the UK and the three Benelux countries, inorder to build stronger operational foundations. In Asia, we will further expand ourbusiness, focusing on Korea.

2) Environment systems business•Environment systems
In the environment system business, capital
investment by Japanese-affiliated companies
operating in Asia, including China, has been
increasing, and it has become apparent in
the business environment that demand has
shifted from Japan to the rest of the world.
In this market environment, we will continue to shift our managerial resources tomarkets where demand is growing in order
to appropriately exploit expansions in demand, particularly in the Asian market. Our
efforts include the bolstering of systems
to sell products and services to businesses
operating overseas, the establishment ofcloser cooperation with overseas Group
companies, and the expansion of productionin China. In addition, we will strengthen ourcapability to develop new products with lessenvironmental impact, launch new products
to match the reduction in size and the diversification of machine tools, and enhance ourlineup of dust-explosion-proof technologies
to raise safety standards. We also aim tospur latent demand by expanding our maintenance business and to further strengthen
profit control for each site in order to boost
profitability.
In overseas markets, we will expand ourbusiness in Asia by building stronger ties withoverseas Group companies in China, Thailand, and other Asian countries. In North
America, we will expand the local production and distribution of standard dust collectors to enhance our operational foundations.

3) Human resource development
Recognizing that people are the key management resource in the operation of ourbusiness, we have positioned human resource development as a priority issue andwill focus on developing employees who
have no fear of change and are willing tomeet challenges.

Business Activities

Time Information Systems
Enhanced Cloud Solutions!
Various services are available toachieve an optimal balance between
Business Continuity Plans (BCPs) andcost reduction.
The demand for cloud services is on
the rise. It is a solution in which thesystems can be configured quickly
and it provides a high level of security,
operational efficiency at lower administration costs. Amano’s cloud solutions
can meet the various requirements depending on the customer’s size, utilization and operations. For small businesses, the T&A service “Smart T&A”, for
medium size businesses, the integrated
service, “CYBER XEED T&A, Payroll,HR”, and for the large companies, thework management service “TimeProCX”, and the time stamp service, “etiming” etc.
From on-premises to cloud, Amano being the top vendor for packaged services,
we can provide solutions for all.
As an indication of its trustworthinessand reliability, Amano’s cloud services has
been awarded the “ASP&SaaS CloudAward” for two consecutive years. Thisaward is sponsored by the ASP&SaaS
Cloud Consortium, a NPO backed by
the Ministry of Internal Affairs and Communications and the Ministry of Economy,Trade and Industry.

Parking Systems
Obtain & analyze parking information
accurately over the web!
Centralized management of parking
information
Parking data center service is an information delivery service via the Internet.
By connecting the parking facility to
Amano’s data center, the facility owneris provided with various information
including the current utilization status.
The service menu includes (i) Management analysis info service, which provides sales and facility utilization levels,(ii) Vehicle count & vacancy info service,where the information becomes available on company websites, (iii) Remotecontrol service, enables the check oferror messages and alarms along withthe control of flaps and gates.
An Internet connection and a browser
software on your existing PC is all thatis needed to check parking information
anytime anywhere. This new service isdrawing attention from the people in
the parking business and thus continued growth is anticipated.
Owner’ s parking facility
Gate type parking

Flap type parking

Parking lot

Commercial facilities, public offices etc

P 1 Vacancy
P2

Full

FOMA Network

Data center

Management analysis
information service

Remote control system

Internet
Vehicle count &Vacancy information service“Sales??”PAmano Parking Vacancy Info “Shall I go
Parking lot 1
Vacancy

30

Full

0

Parking lot 2

by car ??”“The gate
does not open!!”“I will open it”

P

Amano Parking

Parking lot 1
Vacancy

30

Full

0

Vacancy

12

Parking lot 2

Remote control(gates and flaps)

Parking lot 3

Owner

Car park user / Checking owner’ s website

Error & Alarm alerts

Parking data center service

Environmental Systems
Increased orders from the pharmaceutical industry
Powder / dust collectors adopting“containment technology”
The powder / dust collectors used in
the pharmaceutical industry require
the highest level of product quality
control. The industry demands a highdegree of sanitation to prevent crosscontamination of the end product. In
addition, during the manufacturing process of anti-cancer drugs, which utilize
highly active pharmaceutical agents, theadoption of containment technology isessential to protect the workers fromexposure to such agents.
Amano’s containment technology
incorporates the in & out method *1
when changing bag filters, the use ofvinyl-lined tubular packs*2 during powder discharge with the additional use of
wet filters*3 to achieve a higher level ofcontainment. The product is highly rated by the leadingphar maceuticalcompanies who
have adopted it,
and we anticipate
further growth indemand as it becomes an industry
standard.
Powder collector (TFPS0201) for anti-hazard

11*1 A method of changing filters which prevents
direct contact with hazardous material.
*2 Special vinyl-lined tubular packs are used toachieve airtight containment during powder discharge.
*3 The use of wet filters is an anti-scattering technique that increases safety during filter change.

Other Topics
The “All Amano” Fair was held nationwide!
A comprehensive exhibition to introduce the products and services that
Amano and its group companies offer
As an 80th Anniversary special event,the “All Amano” Fair was held in 6 cities (Sendai, Tokyo, Nagoya, Osaka, Hiroshima, Fukuoka) across Japan. Under
multiple themes of Cost reduction, Environment, Operational efficiency, Energy conservation, Save electricity, andSecurity, this was an experience-typefair where the participants can directlysee, touch, and actually experience
Amano products at work. In addition,
guests from industry leaders, businessentrepreneurs, lawyers, social insurance
specialists and consultants were invited
to speak at the seminars, which waswell received by the approximately
8,000 people who attended. On the
day of the fair, we conducted a special
donation event to support the victimsof the Great Eastern Japan Ear thquake and thanks to the generosity
from many of our customers it ended
in great success. The donations were
donated in full to the reconstruction
assistance center through the Central
Community Chest.
All Amano Fair
An experiencing event!
80th Anniversary Special Event
For the creation of a better work environment,
For the Smooth running of businesses, and for living
Comfortably…
Introducing the Amano products, in its entirety, that are
active close to you (at your office, factory, parking)Amano USA Holdings, Inc.
AMANO CINCINNATI, INC. – TIME BUSINESSThe Time Division and the factory haveworked very closely to launch Amano’s
newest side printers with enhanced features: PIX-75 and TCX-85. Since thelaunch of the PIX and TCX Series in October 2011, Amano has shipped 13,000 units.
The PIX-75 and TCX-85 are available on
store shelves at two major retail chains andalso available through their online stores.
Time Division has also redesigned theirwebsite and developed a “Time Knowledge
Base” to improve customer service. “TimeKnowledge Base” provides featured articles,
product manuals, technical support, Q&A
and FAQ’s, which is one click away andavailable 24/7. The knowledgebase has also
helped reduce the demand on our technicalsupport team. Currently, the knowledgebase has over 8000 articles viewed every
week with ever-increasing demand frominternet users.

first series of time & attendance terminals
were known as the Century Series. A few
years later ATS introduced the Cyber Series. Then, in 2007, the Global Series wasbrought to market. We are very excited tolaunch the new Universal Series in 2012.”

day concerns to light for each market andidentifying Amano McGann solutions that
address those concerns and maximizes efficiency and profitability.
The site also offers user-friendly navigationand extensive product information. Brochures, cut sheets, product images, features,and solutions are all at your fingertips. As
we move into the next phase of development you can expect to see the addition ofa dealer portal, interactive applications, andintegration with Amano Security.

Amano McGann, Inc. – Parking
GeneralThe world economies continued to struggle
and in fact experienced major setbacks during 2011. The threat of a sharp global slowdown in 2012 eased with improved activity
in the United States and better policies inthe euro area. These recent improvementsin the US economy are fragile and a strong
rebound from the steep fall of the GreatRecession is needed.
Even with some of the worst economic
conditions faced in decades, Amano McGann was able to post strong revenues
and profits for the 2012 Financial Year. We
will build on that success by fine-tuning ouroperations, sales, marketing, and support
activities this financial year.

ACCU-TIME SYSTEMS, INC.

Success through Change“ATS had a strong 2011
with a respectable finish
ahead of plan for profit.
Our worldwide sales grew
more than 10% in 2011. ATS continued installing its terminals with its partners in highprofile installations around the globe. Our
products are now being used by a large
chain of pubs in The UK, by a cinema groupin Scandinavia, and a series of senior carefacilities in Canada. The
application in Canada uses
both ATS timeclocks andour integration software
called EngineXML.
Planned resources in 2011were spent on developing
new biometric technologies, data collection platforms, service delivery tools, and integration software all to be
introduced in 2012. These new products
offer our reseller partners unparalleled opportunities for new business. As our reseller
partners succeed, so does ATS.
In 2011 ATS introduced its new AccuTouch biometric technology with great success. Our reseller partners quickly adopted
this technology. AccuTouch brings a newlevel of accuracy and ease to finger scanning. Our reseller partners can now deploy
a biometric technology in applications thatwould not previously support one. Dirty,
wet, dry, or damaged fingers can be moreeasily read with AccuTouch.
2011 was also the 20th anniversary of
Accu-Time Systems. In 1991, our CEO,Mr. Peter DiMaria, founded the company
and has delivered consistent growth. The

Amano McGann kicked off 2012 with a
Leadership Summit in Tampa, Florida. Leaders from the management, sales, and marketing teams joined forces to proactively
address the changes in the economy, theindustry, and to shape the future of Amano
McGann.
The meeting provided an opportunity
to realign our company vision, goals, andstrategies with the needs of the industry toallow for positive change in 2012. We will
focus our efforts on improved communication with the field, heightened customer
service, new strategic partnerships, and innovative product offerings designed to not
only maintain our leadership position but
also grow it.
In addition, we have expanded the role of
our Vertical Market group to help organize and lead Capture Teams to assist our
Branch and Dealer organizations with large,
complex opportunities. We are confident
this will have a positive impact on our win
rates. At the same time we will continue tobuild on our successful National Accounts
business through continued best in class
support.

Web Presence
Stay Connected
Amano McGann launched a fully redesigned
website at the beginning of 2012. The site
was designed to align with AMI’s brandingfor consistency and improved awarenesswhile providing users with a more effective
information medium. The site delivers amarket driven approach to better address
the needs of our customers, bringing every-

12

WebLaunch
ScreenShotsAMI Joins the Social Network
Amano McGann is now an active memberof the Facebook community. The new
Facebook page provides AMI with its firstpresence in the ever-so-popular world ofsocial networking that continues to growat an astonishing rate. As of December
2011, Facebook reached 845 million users
in total with 37 million pages dedicated tobusinesses, organizations, brands, charities,
public figures and artists all over the world(facebook.com).
The Facebook page works in conjunction
with the new Website to make important
information available on a continual basis
through a variety of avenues. Our presence
on Facebook increases visibility allowing
branches, dealers and existing and potential
customers an area to receive important information in an interactive format.

Strategic Alliances
Bridging the Gap Between On and OffStreet Parking
AMI has joined forces with
Parkmobile, the leading provi d e r o f m o b i l e p ay m e n tsolutions, to provide the firstcommon on/off-street platform for pay by phone apps.
As part of the integration,
Parkmobile will include a QR
code on all of their smartphone apps which can be Parkmobile
used as a credential to Flex- iPhone
Scan in/out of parking facilities. The experience is similar to scanning your boarding
pass at the airport or using credit card in/out at the parking facility.
This integration provides AMI and our channel partners the ability to leverage the large
installation base of Parkmobile and tap into
this significant user base attracting those users to their facilities.

Product Development
FlexScan Ready Devices
AMI is now shipping FlexScan™ barcode
image scanners with AMG Series Lane
Equipment and Pay Stations. This enables
2D and linear barcode scanning in the lanefrom printed and electronic media. FlexScan
integration offers new andfuture revenue opportunities with the ability todrive applications such as
Parkmobile pay-by-phone,
online validations, reservation parking, promotional
passes, pre-purchased
AMG Entry
event parking, and
FlexScanvisitor passes with tenantchargeback when combined with auxiliary
iParcProfessional Software Modules.

AMG-1800 Direct Drive Gate
The AMG-1800 Direct
Drive Gate is the latest
addition to the AMG
line of equipment andfeatures a power failautomatic option witha maintenance free
torque motor. In theevent that a facility loses power, the AMG1800 gate arm will
AMG-1850 Gate
automatically raise andremain in the open position until power isrestored. This feature provides improved
safety and convenience to both patrons andoperators. The release of the direct drive
gate came at a key time in the industry withseveral major markets mandating gates raisein the event of a power failure.

Universal Reader
Scheduled for release in
July, the Universal Reader
is an entry / exit solutionthat will help facilitate aparadigm shift in the parking industry. The moveaway from traditional ticket
based systems is gaining
popularity. Credit Card in/
Universal
out is essential today. PayReader
by-Phone is quickly gaining popularity. Near Field Communication
is gathering traction. Google Wallet, Isis
(Verizon, AT&T, and T-Mobile) and others will change the way we park cars using
electronic wallets. Automakers and others
are shaping the future of mobility, which will
dramatically impact parking. The Universal
Reader will address demand today and prepare AMI for future shifts.
The Universal Reader features a five-line
display, proximity access, FlexScan technology, credit card w/ receipt, and CommandCenter integration. When combined with
LPR, the Universal Reader can also be used
as an LPR in/out device capable of to printing entry tickets for exception transactions.
In short, the Universal Reader will prepare
AMI for a ticketless future.

Case Study
Amano McGann is committed to developing quality products and long-term relationships in every market we serve through integrity, operational excellence, and a strong
customer focus. These principals, along witha dedicated team of professionals, ensure continued success across all
market segments. One
such example of this success is Westside Pavilion
in Los Angeles.
Amano McGann has a
successful track record Westside Pavilion
in Retail parking automation and that trend continued with installation at the prestigious Westside Pavilion inWest LA. AMI installed the latest technology to ensure mall ownership concerns
were addressed, which included eliminating“poacher” parking, providing a better experience to mall patrons, and reducing thefacility’s carbon footprint.
The solution included technologically advanced parking revenue and guidance systems with Entry and Exit terminals, License
Plate Recognition, Pay Stations with Find
Your Car integration, and a camera based
Parking Guidance system.
“The Amano McGann system has made thecirculation in our garage faster and more
efficient. Customers are definitely happier,”
stated Robin Dean, CSM and AVP of AssetManagement for Macerich®. “It’s easy to
see that we’ve accomplished what we set
out to do.”

AMANO PIONEER ECLIPSE CORPORATION
General
Focusing its attention on growing US sales
in 2011, Amano Pioneer Eclipse (“APEC”)
reengineered its North American sales
force by replacing independent sales
representatives with company employedregional managers. These changes created
improved relationships with both current
and new customers delivering broad based
growth to regional dealers, distributors andbusiness direct companies in every market
segment. Seventy percent of the current
domestic sales force is comprised of regional managers hired since 2011 and 35 new
North American customers were added
over the past year.
Improved customer relationships were further enhanced with the first annual North
American Customer Council meeting heldin the fall of 2011. The Council is comprised of high level executives from someof the largest dealer and end user companies in the industry and will serve as a directline of communication for future strategic
business development.
Another part of the reengineering included
outsourcing the sales administration of
APEC floor grinding and resurfacing systems
to sophisticated concrete specialists. APEC
established private label manufacturing
partnerships with companies who focus on
construction & remodeling market segments outside the janitorial and sanitationindustry. This effort allows the APEC sales
force to concentrate on the company’s
core business while improving the penetration of these high performance machines
into concrete construction and refinishingmarkets unavailable to APEC in prior years.

13

New Products
In the summer of 2011, Amano Environmental US (“AEUS”) - an entirely new
business venture organized under APEC was created at the Sparta, North Carolina
facility. With technical assistance from ACJ,
AEUS established a US based manufacturing facility for the production of industrial
dust and mist collection systems. Basedon existing products manufactured by ACJ,
AEUS now produces two machines thatare marketed to lathe and CNC manufacturers across North and South America.
Additionally, AEUS is providing installationand support services to the Americas forthe full line of ACJ mist and dust collection
products. This is a major strategic growth
opportunity for the future.
In its core business of floor care and janitorial equipment and chemical systems, APEC
set a goal in 2010 that required one-thirdof its turnover come from new products.
The company has taken great strides inachieving this goal with almost 28% of 2011
sales coming from products launched in theprior 36 months. These products include
the PowerStar® Hard Floor Maintenance
System (an integrated package of equipment chemicals and diamond grinding pads
for concrete and terrazzo floors), the 400
Series machine (a low cost, entry level ultrahigh speed propane powered floor burnisher), the AquapHyll™ chemical dosing
and dispensing system and the 300 Seriesmachines (an entirely new line of battery
powered floor scrubbers).

PE400BU

PE300AS

AquapHyll chemical dispensing

Success Stories
In addition to US sales growth, the international sales of APEC machines and chemicals continued its long successful growthtrend. With new customers in many developing countries across the globe and established distributors in many European, Asian,and Pacific markets, APEC internationalsales now represent half of the company’s
total turnover.
In the past year, our efforts have led to significant market share increases with someof the largest retailers in the US, Canadian,and Australian markets. These new opportunities continue to support current growthand future opportunities for both machineand chemical sales. Moreover, they help

improve the visibility and credibility of theentire APEC offering.
Beyond the external successes of APEC,
the company continues to improve its
manufacturing and service capabilities. Improved production processes have allowed
new efficiencies in manufacturing, increasing individual employee output by almost
30%. These improvements, along with thefocused sales and marketing efforts aroundthe world, set the stage for future growthand prosperity.

The second example is EMV. This additional
function for automatic pay stations prevents
chip-mounted credit cards from their false
use. We have installed this system for morethan 20 customers and can install it any
time on the request of our customers.
Having 300 customers is our importantresources. In order to keep our credibility
among those customers of ours, we will
never stop taking care of them and willmeet more and more of their requirement.

Amano Europe Holdings, N.V.
Amano Europe, N.V.
This fiscal year
Amano Europe continued to invest in
the optimization andexpansion of boththe parking and timebusiness, more specifically, great efforts
were made in the industrialization and deployment of “web service” based solutions
like Astrow WEB [workforce management]
and X-Parc [Full IP based parking solutions].
Since the introduction of X-Parc in 2008,
which is now also exported to the Far East
and Australia, Amano Europe has been successful in combining and integrating local
customer needs and requirements [like fullcompliancy to the Disability Act in the UK]
by using the same open platform.
Astrow WEB is now positioned as the
Cloud - T&A solution for small andmedium sized companies in Europe.
Amano Europe not
only introduced
these products successfully, it also reorganized in such a way that the company
is ready to offer the required skill levels in
pre-sales analysis, project
management, consultancy
and support services; competences which are inextricably
linked to the success of theservice based business model
Amano Europe is shifting to.

AMANO TIME & PARKING SPAIN, S.A.
Our company, Amano Time & Parking
Spain, S.A., founded in 2003, has supplied
AMANO parking machines to almost 300
parking lots in Spanish, Portuguese and Andorra territory, and obtained high reputation thanks not only to the good quality ofour products and technical services but also
to our policy of satisfying as much as possible to any kind of needs of our customers.
Let us introduce you two examples toshow how we satisfy the demand of themarket.
In Spain, at the entrance of parking lots, license
plate numbers must be captured by camera
and be recorded in the parking machinery.
Our AMANO machines have this function,
and as shown in the photographs, the license
plate number is printed in each ticket.

Amano UK LTD.
Amano UK Limited (AUK), in reaction tocustomer expectations and to improve bothproduct and service offerings for its expanding Time & Parking customer base, has
introduced a new strategy in 2012 for its
direct and indirect channels to the market,
focussing on partnerships for distribution.
AUK has streamlined the organisation intoa highly trained customer service orientatedbusiness, offering value-added services to its
customers, while continuing to demonstrate
a strong presence in the UK Parking market
through its direct sales & support strategy.
The Millennium Point Car Park, awarded‘Best New Car Park in 2012’ by the British Parking Association (BPA), operated by
Birmingham City Council, chose Amano’s
web enabled, future proven Xparc System
to maximise
the control
efficiency andprofit. AUK is
now achieving abroad portfolioof parking sites
across all market sectors, with installations in Shopping
Centres, Hospitals, Truck-stops and Local
Authorities. Disability Discrimination Act(DDA) compliancy or Equality Act 2010
compliant paystations, introduced during
the recent ParkEx 2012 in London, gathered enthusiastic attention by many visitors,
as well as our competitors throughout Europe.
AUK continues to offer market leading
Time and Parking products and services for
new and existing customers, with its proventrack record, attention to the details, product development and high quality of technical service.

Horoquartz S.A.
In 2011, Horoquartz celebrated the 40thbirthday of the company with four events
dedicated to its clients in Paris, Nantes,
Lyon and Fontenay le Comte. A special
event was attended by all the company
employees in Paris on the 19th and 20th of
May 2011, with the participation of representatives from Amano Japan and Amano

14

Europe. In 2011,
Horoquartz significantly expanded
sales in its corebusiness of workforce management
solutions with asales turnovergrowth greaterthan the growth of
the French market.
The IMS Research2012 international study dedicated to the
WFM solutions market underlines theleadership of Horoquartz in France with amarket share that rose from 22.9% in 2009
to 24.2% in 2011. Horoquartz achieved
important successes especially in the field of
human resources time management and advanced scheduling optimization. For example, the French Post chose the eTemptation
software for optimizing the schedules of its
150,000 employees. Horoquartz has alsosignificantly developed its sales in the areaof access control systems with more than
600 customers now using its Protecsys Suite
solution. Horoquartz continued to invest ininnovation in 2011 with the release of the
major eTemptation 4.0 version. Horoquartz
also launched a new SaaS offer in 2011 thatfully meets customer expectations. Finally,
Horoquartz continued to invest in talent,with over 30 new employees who joined
the company in 2011.

Scopus-Omnibadges
January 1st, 2011, SCOPUS -OMNIBADGES finalized the acquisition of SOGEDEX
Identification Solutions division (IDS). This
major operation doubled turn over this year
and increased staff by 50%.
IDS offer to Scopus -Omnibadges accessto well known key accounts such as BNPParibas or Air France. In addition, IDS bringa network of distributors in Africa, withstrong points in Ivory Coast, Benin, Burkina
Faso, Congo and Gabon. Such countries are
requiring highly sophisticated and secured
solutions for governmental applications.
Scopus- Omnibadges have become software editor, with a range of products in
cards personalization and visitors management.
In May 2011, Scopus- Omnibadges inaugurated their new plant in Bordeaux, France.
This brand new facility replaces the old andinefficient one in which they were since1996. This plant has been designed in orderto optimize material flows, to improve quality, and to give room for future growth.

Amano Parking Europe N.V.
It was a successful year for Amano Parking Europe. The strategy of implementing
the day to day customer needs inside anbigger and broader conceptual framework
has again been
proven in this fiscal year. The XParc hardware
and The X-Officeparking solution
software not only

reached the state of the art
in the parking industry, we
can say that in some area’s
both are considered ashighly innovative and the defacto front runners, allowing
Amano and its partners togain a significant competitive
advantage in the parking solutions market. Without any
doubt we are harvesting on
the right technical and technological choicesthat were made at the start of this product;
indeed focusing on an open architecture ,online nature of all communication, ease of
integration and support and a well balanced
mix between propriety solutions and technology partners has brought us in this poleposition. X-Parc is now sold in more than
20 countries and given the unique natureof the barcode solution, it is exported outof Europe as well. Compliancy, like an full
integration of the requirements related todisabled people in Europe and more specifically in the UK [DDA], and a fast time tomarket have been the major design goals
in this fiscal year. Hosting, web services and
SaaS are all realized and in some countries
already implemented because of the simple
fact that the design of this system took into
account already these possibilities long before they were embraced by the market.

Amano International Trading (Shanghai) Co. Ltd.
Released the TimePro-XG ChineseversionJanuary 2012, AITS launched the TimeProXG Chinese version here in China.
Due to the rapid economic growth, laborcosts are skyrocketing in China. In addition,
the one-child policy and the corporate
migration towards inland China, is causing an acute shortage of human resources
in urban areas. For this reason, humanresource management is drawing greaterattention. Furthermore, labor environments
and labor conditions have become priority
factors for young job seekers when selecting a company. For companies seeking
young, talented and capable personnel, it
is imperative that they create a comfortable work environment, which is impossible
with the conventional simple system. The
TimePro-XG enables the visualization of labor conditions. This will assist the company
to formulate various measures such as costsaving to improve the overall work environment and thus, reducing the risk of people
leaving. AITS has already closed 9 deals
since its launch and is currently accelerating
its efforts towards large scale manufacturers
and multi-shop companies in the service
industry.

Launching the facial recognition & finger print reader
Late June 2012, AITS will release the facialrecognition & finger print reader as an OEM
product. Optional features include multicard readers and automatic cameras. The
finger print reader, which comes as a standard function, has a much higher recognition and stability rate compared to current
popular models on
the domestic market
and it is much cheaper than vein readers.
This model aims torecapture Japanesecompanies here in
China.

Amano Korea Corporation
AKC’s new challenge has begun “Car
Sharing”
AKC has placed particular emphasis on
parking management services and recently,
identified “Car Sharing” as a business opportunity to make effective use parking
spaces.
AKC has teamed up with Green Car Co.
Ltd., a leading car sharing company in Korea, whereby AKC will provide car-sharing
vehicles over a span of 3 years during which
profits will be shared.
Initially, AKC will incorporate this businessas apart of its parking management service
by establishing car sharing stations within
universities, hospitals and public parking facilities. 30 cars have already been procured
and are being distributed to strategic locations. AKC’s car sharing business is advertised on portal sites of the Internet.
In the future, car sharing will be incorporated into AKC’s holistic sales & marketingstrategy in-line with management services
and parking equipment solutions, and inorder to accelerate market recognition, carsharing will be offered from initial proposals towards new residential complexes andconsigned management services.
In Korea, sales rates and evaluations forcondominiums are higher for those, whichhave unique features differentiating it fromothers. Also there is a growth opportunity
at universities. In Korea, many university
students commute by car, and if car sharing
was made available on the campuses, students will be freed from the maintenanceburden associated with ownership of a car.
The car sharing operations in Korea havebeen developed to a stage where it is completely automated and unmanned. This was
possible due to Korea’s advanced Internet
infrastructure, the wide use of smartphones
and a strong driving force to develop systems matching today’s needs.
The target for the next one to two years
is to establish a car sharing station in every
parking facility, including public parking,15

which are managed by AKC so that the service is available for all AKC customers.
Obviously, AKC will not stop at just this but
will continue its R&D for other areas suchas parking control and LED lighting to seek
the number one position in the parking
business.

Green Car
Block diagram for Car Sharing System
Apartment parking lot In/Out
Camera 1

Camera 2

one
Smart phInternet reservationby the PC

Camera 3

Camera 4

Reservation by the[LPR] By cheking Smart phone APP
the car license
number, SearchInternet
for the appearance
image

Apartment parking lot Inside

Parkingmanagement PC

Internet

oldHousehWall-Pad

Reservation by thehousehold Wall-Pad

Internet

Server forhousehold notice

License Plate
Recognition Camera(celling type)Exclusive parking lot
for Car Sharing

Green Car Server

Amano Time & Air Singapore Pte. Ltd.
From 2012, ATAS has commenced the saleof PGS (Parking Guidance System) in addition to the conventional EPS(Electronic
Parking System). The PGS is designed to
guide the driver from the entrance tothe parking bay. The system consists of aparking bay sensor, LED indicators, LED
guidance displays, a main LED, an area
controller, a system controller and control
software.
ATAS has already received 3 orders fromSingapore’s largest real estate developer,
the Far East Organization Pte. Ltd., who developed Orchard Central, The Greenwich,
and Junction 10. The orders are for these3 shopping centers 2 of which have alreadybeen installed. In Singapore, the demand for
PGS is strong particularly from indoor parking facilities housing more than 300 parking
bays. This is a large market in Singapore anddriven by PGS sales, it is anticipated thatparking sales will increase at ATAS.

AMANO Corporation and Subsidiaries

Financial Highlights
For the years ended March 31, 2012 and 2011.

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			2012

2011

2012

For the years ended March 31:
Net sales............................................................

¥88,147¥83,303$1,074,963

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

2,415

3,065

29,451

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

¥31.52¥40.01$0.384

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

26.00

26.00

0.317

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

¥103,478¥102,933$1,261,927

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

38,63034,589471,098

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

72,192

72,561

880,391

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

¥19,569¥18,890$238,646

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

4,245

4,407

51,768Parking systems.................................................

40,79438,493

497,488

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

16,37414,144

199,683

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

7,165

7,369

87,378Per 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 ¥82 = US $1, the rate prevailing on March 31, 2012.
-See Note 5 to the Consolidated Financial Statements.

Net Sales

Net Income(Millions of Yen)

(Millions of Yen)

100,000

7,000

Net Income Per Share
(Yen)

80.00
70.00

90,0006,000

80,000

60.00
5,000

70,00050.00
60,000

4,000
40.00

50,0003,000

40,00030,000

30.00

2,000

20.00

20,0001,000

10,000
0

'08

'09

'10

'11

'12

0

10.00

'08

'09

'10

16

'11

'12

0

'08

'09

'10

'11

'12

AMANO Corporation and Subsidiaries

Consolidated Balance Sheets
As at March 31, 2012 and 2011.			

Millions of Yen

ASSETS

Thousands of U.S.
dollars (Note 5)

2012

2011

2012

¥28,057
1,075¥27,265
1,190$342,159
13,11023,754(128)
23,626
6,190
1,447
1,871
62,26621,145(130)
21,015
6,327
1,321
1,672
58,790289,683(1,561)
288,12275,48817,646
22,816759,341

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

27,55018,4003,907
49,857(34,707)
15,1507,122
104
22,376

27,511
17,975
2,641
48,127(33,123)
15,004
7,155
298
22,457335,976
224,390
47,646
608,012(423,256)
184,756
86,854
1,268
272,878

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

4,678
1,840
347
1,025
7,890

5,455
2,849
337
1,148
9,789

57,04922,4394,232
12,50096,220Investments and other assets:
Investments in unconsolidated subsidiaries and affiliates........
Investments in securities....................................
Leasehold and guarantee deposits.......................
Deferred tax assets.............................................
Other assets.......................................................
Less allowance for doubtful accounts..................
Total investments and other assets..................

442
3,832
1,070
1,853
4,205
(456)
10,946

794
4,023
1,081
2,070
4,357
(428)
11,897

5,390
46,732
13,04922,59851,280(5,561)
133,488

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

¥103,478¥102,933$1,261,927

Current assets:
Cash and bank deposits......................................
Marketable securities..........................................
Notes and accounts receivable:
Trade..............................................................
Less allowance for doubtful accounts...............
Inventories........................................................
Deferred tax assets.............................................
Other current assets...........................................
Total current assets........................................
Property, plant and equipment, at cost:
Buildings and structures.....................................
Machinery and equipment..................................
Lease assets ......................................................
Less accumulated depreciation and impairment.........

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

2012

2011

2012

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

¥10,386
169
864
5,183
2,148
–
4,887
23,637¥10,031
1,715
540
4,741
2,049
15
5,110
24,201$126,659
2,061
10,537
63,207
26,195–59,597288,256

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

1,291
2,984
223
2,552
302
16
281
7,649

11
3,454
272
1,749
300
16
369
6,171

15,74436,3902,720
31,122
3,683
195
3,426
93,28018,240–19,56747,391–
18,24019,567
46,968222,439–
238,622577,939(3,719)81,479(3,719)81,056(45,354)993,646(179)(9,294)(9,473)(154)(8,501)(8,655)(2,183)(113,341)(115,524)

Minority interests in consolidated subsidiaries.....

186

160

2,269

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

72,192

72,561

880,391

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

¥103,478¥102,933$1,261,927

Net assets:
Shareholders' equity:
Common Stock
Authorized- 185,476,000 shares
Issued:March 31, 2012 - 81, 257, 829 shares.............
March 31, 2011 - 81, 257, 829 shares.............
Capital surplus...............................................
Retained earnings ..........................................
Treasury stock at cost, 4,661,851 shares in 2012
and 4,660,922 shares in 2011 .........................

Accumulated other comprehensive income
Net unrealized gains (losses) on other securities.....
Foreign currency translation 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, 2012 and 2011.		

Consolidated Statements of Income
Thousands of U.S.
dollars (Note 5)

Millions of Yen

		

2012

2011

2012

Net sales ......................................................................
Cost of sales.................................................................
Gross profit....................................................
Selling, general and administrative expenses...............
Operating income...........................................
Other income ( expenses ) :Interest and dividend income .............................
Interest expense ................................................
Equity in earnings of affiliates ............................
Foreign exchange losses ....................................
Gain on sale of fixed assets ................................
Loss on disposal of fixed assets ..........................
Loss on sale of fixed assets ................................
Loss on sale of investments in securities .............
Loss on write-down of investments in securities..
Gain on negative goodwill .................................
Loss on transfer of business................................
Impairment loss on fixed assets..........................
Other, net .........................................................
Income before income taxes and minority interests.....
Income taxes :Current..............................................................
Deferred............................................................
Income before minority interests.....................
Minority interests in net income of consolidated subsidiaries.....
Net income....................................................

¥88,147
49,34638,801
32,884
5,917¥83,30346,692
36,61132,2284,383$1,074,963
601,780
473,183
401,024
72,159

158
(38)
37
(70)
5
(24)
0
–
(539)
–
–
(87)
151
5,510

139
(37)
36
(170)
8
(59)
(3)
0
(126)
990
129
–
174
5,464

1,927
(463)
451
(854)
61
(293)
0
–
(6,573)––(1,061)
1,841
67,195

3,038
8
2,464
(49)
¥2,415

2,274
(31)
3,221
(156)
¥3,06537,04998
30,048(597)$29,451

Net income per share, basic..........................................
Cash dividends per common share...............................

¥31.52
26.00

Yen

U.S. dollars (Note 5)¥40.01
26.00

Consolidated Statements of Comprehensive Income
Millions of Yen$0.384
0.317

Thousands of U.S.
dollars (Note 5)

		

2012

2011

2012

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

¥2,464¥3,221$30,049

(25)
(794)

(36)
(2,539)(305)(9,683)

(13)

(8)

(159)

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

(832)¥1,632(2,583)¥638(10,147)$19,902

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

¥1,596
¥36

¥494
¥144

$19,463$439

Other comprehensive income
Net unrealized gains (losses) on other securities.....
Translation adjustments.....................................
Share of other comprehensive income of companies
accounted for by the equity-method.........................

The 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, 2012 and 2011.
Millions of yen
Shareholders’ equity
Common stock

Capital surplus

Retained earnings

Treasury stock

Balance at April 1, 2011
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

¥18,240¥19,567¥46,968(¥3,719)

Total shareholders’equity¥81,056(0)(1,992)
2,415
(0)

423

(0)

423

Balance at March 31, 2012¥18,240¥47,391(¥3,719)¥81,479

Balance at April 1, 2011
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
Balance at March 31, 2012

(1,992)
2,415––¥19,567

Accumulated other comprehensive income
Minority interests
Net unrealized Foreign currency Total accumulated
in consolidated Total net assets
other comprehensive
gains (losses) on
translation
subsidiaries
incomeother securities
adjustments(¥154)(¥8,501)(¥8,655)¥160¥72,561

(25)
(25)

(793)
(793)

(818)
(818)

26
26

(1,992)
2,415
(0)
(792)
(369)

(¥179)(¥9,294)(¥9,473)¥186¥72,192

Thousands of U.S. dollars (Note 5)
Shareholders' equity
Common stock

Capital surplus

Retained earnings

Treasury stock

Balance at April 1, 2011
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

$222,439$238,622$572,781($45,354)

Balance at March 31, 2012

$222,439

Balance at April 1, 2011
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
Balance at March 31, 2012(24,293)(24,293)

29,451(0)––$238,622

Total shareholders'equity$988,488

29,451
(0)

5,158

(0)

5,158

$577,939($45,354)$993,646

Accumulated other comprehensive income
Minority interests
Net unrealized Foreign currency Total accumulated
in consolidated Total net assets
other comprehensive
gains (losses) on
translation
subsidiaries
incomeother securities
adjustments($1,877)($103,672)($105,549)$1,951$884,890

(306)
(306)

(9,669)(9,669)(9,975)(9,975)318
318(24,293)
29,451(0)(9,657)(4,499)($2,183)($113,341)($115,524)$2,269$880,391

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, 2010
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

¥18,240¥19,567¥45,895( ¥3,717)

Total shareholders'equity¥79,985(2)(1,992)
3,065(2)Balance at March 31, 2011¥18,240

Balance at April 1, 2010
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
Balance at March 31, 2011

(1,992)
3,065

–

–

1,073

(2)

1,071

¥19,567¥46,968( ¥3,719)¥81,056

Accumulated other comprehensive income
Minority interests
Net unrealized Foreign currency Total accumulated
in consolidated Total net assets
other comprehensive
gains (losses) on
translation
subsidiaries
incomeother securities
adjustments( ¥118)( ¥5,966)( ¥6,084)¥1,067¥74,968(36)(36)(2,535)(2,535)(2,571)(2,571)

(907)
(907)

(1,992)3,065(2)(3,478)(2,407)( ¥154)( ¥8,501)( ¥8,655)¥160¥72,561

The accompanying notes are an integral part of these statements.

21

AMANO Corporation and Subsidiaries

Consolidated Statements of Cash Flows
For the years ended March 31, 2012 and 2011.
Thousands of U.S.
dollars (Note 5)

Millions of Yen

		

2012

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

22

2011

2012

¥5,510¥5,464$67,195

4,030
678
87
(461)
42
(158)
(37)
38
3
–
539
(5)
24
–
–
(2,917)
35
447
1,006
8,861
208
(38)
(99)
(3,082)
124
5,974

4,351
718
–
(410)
(46)
(139)
(36)
37
(43)
0
126
(5)
59
129
(990)
(585)
(453)
1,150
1,428
10,755206(37)–(1,084)445
10,28549,146
8,268
1,061(5,622)512(1,927)
(451)
463
37
–
6,573
(61)
293
–
–
(35,573)427
5,451
12,269108,061
2,537(463)(1,207)(37,585)
1,511
72,854(2,054)2,241(1,265)
11
(842)
(56)
–
(4,377)
4,673
(7)
4
137
(1,535)(2,000)
2,000
(805)
18
(1,445)(636)(1,619)(5,569)
4,380
(18)
22
14
(5,658)(25,049)
27,329(15,427)
134(10,268)(683)–(53,378)
56,988
(85)
49
1,670
(18,720)–(1,729)
1,550
(17)
(0)
(854)
(1,992)(9)(3,051)(80)
1,308
24,614

1,906
(6)
–
(10)
(2)
(523)
(1,992)
(21)
(648)
(419)
3,560
20,933–(21,085)
18,902(207)(0)(10,415)(24,293)(109)(37,207)(976)
15,951300,171–¥25,922

121¥24,614–$316,122

AMANO Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

1. Basis of Consolidated 		
Financial Statements
The accompanying consolidated
financial statements of AMANO
Corporation [hereinafter called "theCompany"] and its subsidiaries
have been prepared in accordancewith the provisions set forth in theJapanese Financial Instruments andExchange Act and its related accounting regulations in Japan. The
accounts of the Company and domestic subsidiaries included in the
consolidation are based on the accounting records maintained in accordance with accounting principles
generally accepted in Japan, which
are different in certain respects as
to the application and the disclosure requirements of International
Financial Reporting Standards.
The information in the consolidated
financial statements is derived fromthe original text, scope, and thenature of that information, and istherefore limited to that containedin the original text. However, certain reclassifications or summarizations of accounts have been madeto present the consolidated financial
statements in a form which is morefamiliar to the readers outside Japan.

2. Principles of Consolidation(1) Scope of Consolidation
The Company had 28 consolidated
subsidiaries at March 31, 2012;
The accompanying consolidated
financial statements include the accounts of the Company and those of
its subsidiaries that are controlled
by the Company. Under the con-trol concept, major subsidiaries inwhich the Company is able to exercise control over operations are to
be fully consolidated.
The accounts of the overseas consolidated subsidiaries are preparedon the basis of a December 31 fiscal year-end, and are consolidated
accordingly with the Company atMarch 31, 2012 and 2011, and forthe years then ended.
The consolidated subsidiaries thathave been consolidated with theCompany for the year ended March
31, 2012 are as follows:
Company Name

EquityPaid In Capitalownership (Thousands)%

1) Amano USA Holdings, Inc.
		
100% US$ 111,702
2) Amano Cincinnati, Inc.
		
100% US$ 23,172
3) Amano Cincinnati Canada, Inc.
		100%
C$ 4394) Accu-Time Systems, Inc.
		100%
US$ 0.83
5) Accu-Tech Systems, Ltd.
		100%
£ 0.002
6) Amano McGann, Inc.
		
100% US$ 46,418
7) Amano Pioneer Eclipse Corp.
		
100% US$ 4,606
8) Amano Europe Holdings N.V.
		
100% EUR 73,824
9) Amano Europe N.V.
		
100% EUR 17,850
10) Horosmart S.A.
		
100% EUR 16,000
11) Horoquartz S.A.
		
100% EUR 20,000
12) Horoquartz Marocco S.A.
		100%
DH 20013) Pial Technologies S.A.
		100%
EUR 650

2314) Scopus-Omnibadges S.A.S.
			67%
EUR 820
15) Amano Time & Parking Spain, S.A.
			
100% EUR 2,518
16) Amano Malaysia Sdn.Bhd.
			100%
MR 2,500
17) Amano Cleantech Malaysia Sdn.Bhd.
			90%
MR 20018)Amano Time & Air Singapore Pte. Ltd.
		
100%
S$700
19)PT. Amano Indonesia		100%
US$ 250
20)Amano Thai International Co., Ltd.
		
49% THB 8,000
21)Amano International Trading (Shanghai)Co., Ltd.
		100%
US$ 200
22)Amano Korea Corp.
		
100% W10,605,895
23)Amano Agency Corp.
		
100%¥10,000
24)Environmental Technology Company
		100%¥20,000
25)Amano Management Service Corp.
		
100%¥205,000
26)Amano Maintenance Engineering Corp.
		
100%¥30,000
27)Amano Business Solutions Corp.
		
100%¥300,000
28)Amano Musashi Electric Corp.
		
100%¥10,000
Note: Investment in Parkinsys
Technology Co., Ltd., a Taiwanese company, over which
the Company has the ability to
exercise significant influence(the Company owns 36.6 percent) is accounted for using theequity method.

(2) Accounting for Investments
in Unconsolidated Subsidiaries and Affiliates
None of the 6 unconsolidated subsidiaries are accounted for by theequity method, because the effectof their net income or losses andretained earnings on the accompanying Consolidated Financial Statements are immaterial.

(3) Consolidation and Elimination
For the purpose of preparing theconsolidated financial statements,
all significant intercompany transactions, account balances, andunrealized profits among the groupcompanies have been eliminatedfrom the consolidated financial
statements. Intercompany profit
included in the assets sold fromthe Company to the consolidateds ubs id ia r ies h a s b een enti r el yeliminated and charged against theconsolidated earnings of the groupcompanies. Intercompany profit
included in the assets sold fromthe consolidated subsidiaries to theCompany has been entirely eliminated and the portion applicable tominority interests has been charged
against them.

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

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

(3) Property, Plant and Equipment
Property, plant and equipment arestated at cost, less accumulated depreciation. Depreciation is computed on the declining balance method,
except for buildings acquired from

April 1, 1998, computed on thestraight -line method based on theestimated useful lives. The rangesof the useful lives of assets are :Buildings		
7-50 years
Machinery and equipment 7-17 years
Cost of property, plant and equipment, retired or otherwise disposedof, and related accumulated depreciation, is eliminated from therespective accounts, and the resulting gain or loss is reflected in income during the applicable period.
Normal repairs and maintenance,
including minor renewals and improvements, are charged to income
as incurred.

(4) Intangible Assets
Intangible assets are amortized using the straight-line method. Software costs for internal use are amortized by the straight-line method
over their expected useful lives (fiveyears). Goodwill is amortized overthe estimated useful life, or where
the amount of goodwill is immaterial, is charged to income in theyear of acquisition.

(5) Lease Assets
Lease assets in finance lease transactions not involving transfer ofownership are depreciated by thestraight-line method over the termof the lease, with a residual valueof zero. Finance lease transactions
not involving transfer of ownership made prior to the beginningof the first year of application of
the revised Accounting Standard
for Lease Transaction have beenaccounted for using the method applied to rental transactions.

24(6) Accounting for Financial
Instruments(a) Derivatives
All derivatives are stated at theirfair values, with changes in fairvalue included in net profit or loss
for the period in which they arise.
(b) Securities
Securities held by the Company andits subsidiaries are classified into four
categories;
Trading securities, which are held
for the purpose of generating profits
on short-term differences in prices,
are stated at their fair values, withchanges in fair values included in
net profit or loss for the period inwhich they arise. Additionally,
securities held in trusts for trading
purposes are accounted for in thesame manner as trading securities.
Held-to-maturity debt securities, that
the Company and its subsidiaries
have intent to hold to maturity, arestated at their costs after accounting
for premium or discount on acquisition, which are amortized over theperiod to maturity.
Investments of the Company inequity securities issued by unconsolidated subsidiaries and affiliates
are accounted for by the equity
method. Exceptionally, investments
in certain unconsolidated subsidiaries and affiliates are stated at costbecause the effect of application of
the equity method would be immaterial.
Other securities for which market
quotations are available are stated
at fair value. Net unrealized gains
or losses on these securities are reported as a separate item in the net
assets at a net-of-tax amount.

Other securities for which market
quotations are unavailable are stated at cost, except as stated in theparagraph below.
In cases where the fair value ofheld-to-maturity debt securities,
equity securities issued by unconsolidated subsidiaries and affiliates,or other securities had declined significantly and such impairment of
the value is not deemed temporary,
those securities are written down
to the fair value and the resulting
losses are included in net profit orloss for the period.

(7) Foreign Currency Translation
Foreign currency transactions aretranslated using foreign exchange
rates prevailing at the respective
transaction dates. Receivables andpayables in foreign currencies aretranslated at the foreign exchange
rates prevailing at the respectivebalance sheet dates and the resulting transaction gains or losses aretaken into income currently.

(8) Translation of Foreign
Currency Financial
Statements (Accounts ofOverseas Subsidiaries)
Foreign currency denominatedstatements of overseas consolidated
subsidiaries have been translated
into Japanese yen using the method
prescribed by the Business Accounting Deliberation Council ofJapan. All the balance sheet accounts of foreign and affiliates aretranslated at the foreign exchange
rates prevailing at the respectivebalance sheet date expect common
stock and capital surplus. On theother hand, all the profit and loss

accounts are translated at the average foreign exchange rates for therespective periods. Differences arising from translation are presented
as “Foreign currency translation adjustments” and “Minority interests
in consolidated subsidiaries” in theaccompanying consolidated financial statements.

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

(10) Allowance for Doubtful
Accounts
In general, the Company and its
subsidiaries provide the allowancebased on the past receivables loss
experience for a certain reference
period. Furthermore, for receivables with financial difficulty which
could affect the debtors' ability toperform their obligations, the allowance is provided for estimated unrecoverable amounts individually.

(11) Accrued Retirement Benefits
to Employees
The Company and some of its Japanese subsidiaries recognize accrued
pension and severance costs to employees based on the actuarial valuation of projected benefit obligationand plan assets at fair value. Prior
service costs are amortized based

25on the straight-line method over a
period of ten years. Actuarial gains
and losses are amortized based on
the straight-line method over a period of ten years starting from the
beginning of the subsequent year.

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

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

(14) Revenue from Construction Contracts
Revenues and costs of construction contracts are recognized by thepercentage-of-completion method incase the percentage of completion foreach contract can be reliably estimated.
The percentage of completion is measured by the percentage of total costs
incurred to date to estimated total costs

for each contract. The completed-contract method is applied to the contracts
in case the percentage of completioncannot be reliably estimated.

4. Supplementary Explanation
Effective the year ended March 31,
2012, the Company has applied
ASBJ Statement No.24, “AccountingStandard for Accounting Change
and Error Corrections”.

5. United States Dollar Amounts
The Company maintains its accounting records in Japanese yen.
The U.S. dollar amounts includedin the consolidated financial statements and notes thereto represent
the arithmetical results of translating Japanese yen to U.S. dollars at a
rate of ¥82=US $1, the approximate
effective rate of exchange prevailingon March 31, 2012. The inclusionof U.S. dollar amounts is solely forthe convenience of readers outside
Japan and is not intended to imply
that yen amounts could be converted, realized, or settled in U.S.
dollars at that, or any other rate.

26

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

Cash and bank deposits
Marketable securities
Sub total

Time deposits due overthree months
Marketable securities
due over three months
Cash and cash equivalents

Millions of Yen
2012
2011
¥28,057¥27,265
1,075
1,190
29,13228,455

Thousands of U.S.dollars ( Note 5 )2012$342,159
13,110355,269(2,210)(2,651)(26,952)(1,000)¥25,922(1,190)¥24,614(12,195)$316,122

7. Inventories
Inventories as of March 31, 2012 and 2011 consisted of the following:

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

Millions of Yen
2012
2011
¥3,058¥2,943
707
722
2,425
2,662
¥6,190¥6,327

Thousands of U.S.dollars ( Note 5 )2012$37,293
8,622
29,573$75,488

8. Selling, General, and Administrative Expenses
Selling, general, and administrative expenses during the years ended March 31, 2012 and 2011 include principally:

Labor and payroll
Rental for properties
Travel and transportation

Millions of Yen
2012
2011
¥14,037¥13,874
1,671
1,700
1,251
1,169

Thousands of U.S.dollars ( Note 5 )2012$171,183
20,37815,256

9. Provisions
Provisions charged to operation during the years ended March 31, 2012 and 2011 are mainly as follows:

Employees’ bonuses
Retirement benefits
Allowance for doubtful accounts

Millions of Yen
2012
2011
SGA
SGA
¥1,268¥1,174
1,120
1,155
59
–

27

Thousands of U.S.dollars ( Note 5 )2012
SGA$15,463
13,659720

10. Impairment Loss on Fixed Assets
Impairment loss on fixed assets for the years ended March 31, 2012 and 2011 is summarized as follows:
Location
Amano Pioneer Eclipse
Corp. (U.S.A.)

Purpose of use

Category

Business use
Business use
Business use

Buildings and structures
Machinery and equipment
Land
Total

Millions of Yen
2012
2011
¥30
–
3
–
54
–
¥87
–

Thousands of U.S.dollars ( Note 5 )
2012
$366
36
659
$1,061

Method to Group Assets:
The Company and its subsidiaries group assets according to minimum units that have identifiable cash flows essentially independent from the cash flowsof other assets or groups of assets.
Recognition of Impairment Losses:
In the year ended March 31, 2012, the total amount of projected future cash flows generated from the asset group of Amano Pioneer Eclipse Corp. fell below thebook values. As a result, the book values of these assets were reduced to the recoverable amount, and the reduction was recognized as impairment losses.
Calculation of Recoverable Amount:
The recoverable amount for the said assets is estimated based on the net selling price. The calculation of market value is mainly based on appraised value.

11. Other Comprehensive Income
The following table presents reclassification and tax effects allocated to each component of other comprehensive income for the year ended March 31, 2012:
2012
¥2
(0)
2
(27)
(25)

Thousands of
U.S.dollars ( Note 5 )
2012
$24
(0)
24
(329)
(305)

(812)
–
(812)
18
(794)

(9,902)–(9,902)219(9,683)(13)(¥832)(159)($10,147)

Millions of Yen
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………………………………………………………

12. Leases Commitments
Finance lease contracts, which commenced on or before March 31, 2008, other than those which are deemed to transfer the ownershipof the leased assets are accounted for by the method that is applicable to operating leases.
Minimum future lease payments under finance leases, which include the imputed interest expense portion are summarized as follows:
Millions of Yen
Due within one year
Due over one year
Total

2012
¥63
27
¥90

2011
¥185
91
¥276

Thousands of U.S.dollars ( Note 5 )
2012
$769
329
$1,098

Lease payments on finance lease contracts without transfer of ownership for the years ended March 31, 2012 and 2011were ¥182 million ($2,220 thousand) and ¥309 million, respectively.
Acquisition cost, accumulated depreciation, net book value and depreciation expenses for the year ended March 31, 2012 and2011, if capitalized, are summarized as follows:

Acquisition cost
Accumulated depreciation
Net book value

2012
¥925
834
¥91

Millions of Yen
2011¥1,552
1,275¥277

Thousands of U.S.dollars ( Note 5 )2012$11,281
10,171$1,110Depreciation

¥182

¥309

$2,220Depreciation is calculated based on the straight-line method over the lease term of the leased assets.
28

13. Financial Instruments
Overview(1) Management policy
The management policy of the Company is that temporary surplus fund should be invested in low-risk financial instruments. The Company
has not held any high-risk financial instruments.

(2) Financial instrument and its risk
Both notes receivable and accounts receivable as operating receivable are exposed to credit-related losses in the event of nonperformance bycounterparties. Both notes payable and accounts payable as trade liability are due and payable within one year. Marketable securities andinvestments 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 a credit management policy. In accordance with the credit management policy, the exposure to credit risk of both notes receivable and accounts receivable is monitored on an ongoing basis in order to detect unrecoverable credits in early stages as well as minimizing them. The Company has operated Fund Operation Council in place. In accordance with the examination and decision of the fund operation council, the Company has made an investment in held-to-maturity securities, which consist largely of negotiable deposits and securities
graded at high credit rating. The Company has expected that no held-to-maturity securities can fail to meet their obligations.

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

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

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

Estimated fair value of financial instruments
Differences between carrying value and estimated fair value as of March 31, 2012 and 2011 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 Other securities
Total (Asset)(4) Trade notes and accounts payable
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
Total (Liability)

Carrying
value¥28,057
23,754

Millions of Yen
2012
Estimated
Difference
fair value
in amounts¥28,057–
23,754–

Thousands of U.S.dollars ( Note 5 )2012
Carrying
Estimated
Difference
value
fair value
in amounts$342,159$342,159–
289,683
289,683
–

1,424
3,203
¥56,438

1,420
3,203
¥56,434

(¥4)
–
(¥4)

17,36639,061$688,269

17,31739,061$688,220

($49)
–
($49)

¥10,386¥10,386¥10,386¥10,386––$126,659$126,659$126,659$126,659––

Carrying
value¥27,265
21,145

Millions of Yen
2011
Estimated
Difference
fair value
in amounts¥27,265–
21,145
–

1,489
3,195
¥53,094

1,487
3,195
¥53,092

(¥2)
–
(¥2)

¥10,031¥10,031¥10,031¥10,031––29

(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 value approximates 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 of March 31, 2012 and 2011.
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)

2012
¥720

Millions of Yen

2011¥1,321Thousands of U.S.dollars ( Note 5 )2012$8,780The unlisted stocks as stated above are not included in (3) Marketable securities and investments in securities because it is difficult to estimate the fair value
based on the quoted market prices in active markets.

(*3) Redemption schedule for monetary claim, and securities with maturities as of March 31, 2012 and 2011 is as follows:
Millions of Yen
2012
Due
Due after 1 year
Due after 5 years
within 1 year
but within 5 years
but within 10 years
Cash and bank deposits¥28,057––
Notes and accounts receivable
23,754––Marketable securities and investments in securities:
Held-to-maturity securities
1,075
¥300
¥50
Other securities with maturity date
–
700
–
Total
¥52,886¥1,000¥50

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

Millions of Yen
2011
Due after 1 year
Due after 5 years
but within 5 years
but within 10 years
–
–
–
–

Due
within 1 year
¥27,265
21,145
1,190–¥49,600

¥300
600
¥900

–
¥100
¥100

Thousands of U.S.dollars ( Note 5 )2012
Due after 1 year
Due after 5 years
but within 5 years
but within 10 years
–
–
–
–

Due
within 1 year
$342,159
289,683
13,110–$644,952$3,6598,537$12,196

30

$610
–
$610

Due
after 10 years
–
–
–
–
–

Due
after 10 years
–
–
–
–
–

Due
after 10 years
–
–
–
–
–

(*4) Repayment schedule for long-term loan payable and lease obligations at the balance sheet dates:
Millions of Yen
Long-term loan payable
Lease obligations
Total

Due within 1 year The second year
–
¥331
¥864
889
¥864
¥1,2202012

The third year
¥168
711
¥879

The fourth year
¥787
497
¥1,284

The fifth year
¥3
277
¥280

Thereafter
–
¥177
¥177

The fifth year
–
¥169
¥169

Thereafter
–
¥109
¥109

Millions of Yen
2011

Long-term loan payable
Lease obligations
Total

Due within 1 year The second year
–
¥3
¥539
570
¥539
¥573

The third year
¥3
521
¥524

The fourth year
¥3
380
¥383

Thousands of U.S.dollars ( Note 5 )Long-term loan payable
Lease obligations
Total

Due within 1 year The second year–
$4,037$10,537
10,841$10,537$14,878

2012

The third year
$2,0498,671$10,720

The fourth year
$9,5986,061$15,659

The fifth year
$37
3,378
$3,415

Thereafter–$2,159$2,159(*5) Held-to-maturity and other securities with readily determinable fair value as of March 31, 2012 and 2011, are as follows:
Millions of Yen

Held-to-maturity

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

2012

Carrying
value¥1,424

Fair value

Unrealized
gains (losses)( ¥4)

Carrying
value$17,366

Fair value

Carrying
value

Acquisition Unrealized
gains (losses)
cost

Carrying
value

Acquisition Unrealized
cost
gains (losses)¥1,420

Other securities with carrying
value exceeding acquisition cost
StocksOther
		Subtotal
Other securities with carrying
value not exceeding acquisition cost
StocksOther
		Subtotal
		Total$17,317

Unrealized
gains (losses)
($49)

¥817
305
1,122

¥563
300
863

¥254
5
259

$9,964
3,720
13,684$6,866
3,659
10,525$3,098
61
3,159

1,684
387
2,071

2,192
400
2,592

(508)
(13)
(521)

20,536
4,720
25,256

26,732
4,878
31,610(6,196)(158)(6,354)¥3,193¥3,455( ¥262)$38,940$42,135($3,195)

Millions of Yen

Held-to-maturity

Thousands of U.S.dollars ( Note 5 )
2012

2011

Carrying
value¥1,489Acquisition
cost¥1,487

Unrealized
gains (losses)( ¥2)

Carrying
value

Fair value

Unrealized
gains (losses)

¥817
305
1,122

¥563
300
863

¥254
5
259

1,684
387
2,071

2,192
400
2,592

(508)
(13)
(521)

¥3,193¥3,455( ¥262)31

14. 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 partof its retirement benefit plan.
(3) Employees' pension fund: Since April 1, 1980, the Company has used an employees' pension fund plan (comprehensive establishment type) as a supplement to its existing retirement benefit scheme.
The components of accrued retirement benefits to employees as of March 31, 2012 and 2011 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
2012
2011
¥11,149¥10,224(6,677)(6,193)
4,472
4,031(1,547)
(626)
25
28
34
21
¥2,984¥3,454

Thousands of U.S.
dollars ( Note 5 )2012$135,963(81,427)
54,536(18,866)305
415$36,390

The components of retirement benefit expenses for the years ended March 31, 2012 and 2011 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

Millions of Yen
2012
2011
¥592
¥579
245
243
(213)
(193)
(3)
(3)
167
205
513
494
319
342
¥1,620¥1,667

Thousands of U.S.
dollars ( Note 5 )2012$7,2202,988(2,598)
(37)
2,037
6,256
3,890
$19,756* Contribution paid to defined contribution pension scheme.

The assumptions used for calculation of retirement benefits for the years ended March 31, 2012 and 2011 are as follows:
Method of attribution of estimated retirement
benefits to periods of employee service
Discount rate
Expected return on plan assets
Amortization period for unrecognized priorservice cost
Amortization period for unrecognized actuarial difference

2012

2011

Straight-line method

Straight-line method

1.5%
3.5%

2.5%
3.5%

10 years

10 years

10 years

10 years32

15. Deferred Tax
Deferred tax assets and liabilities (both current and non-current) consisted of the following elements:
Millions of Yen
2012
2011

Thousands of
U.S.dollars (Note 5)2012

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

¥148
734
79
1,087
737
444
97
79
528
693
(1,301)¥3,325

¥144
717
101
1,388
714
292
69
106
317
584
(933)
¥3,499$1,805
8,951
963
13,256
8,988
5,415
1,183
963
6,439
8,451
(15,865)$40,549

Deferred tax liabilities:
Reserve for advanced depreciation of building
Acquired intangible assets
Others		 Total deferred tax liabilities
		 Net deferred tax assets

(16)
(129)
(182)
(327)
¥2,998

(19)
(287)
(103)
(409)
¥3,090(195)(1,573)(2,220)(3,988)$36,561

2012
40.6%

2011
40.6%

1.6
(6.0)
1.5
3.1
5.8
(0.2)
(1.7)
6.7
3.6
(2.4)
(0.3)
3.0
55.3%

1.0
(3.1)
1.5
4.2
3.1
(0.4)
(1.5)
1.3
–
(2.1)
(0.3)
(3.2)
41.1%

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 subsidiaries’ tax rates
Equity in earnings of affiliates
Others		 Actual tax rate

Revision of deferred tax assets and deferred tax liabilities due to the change in the effective statutory tax rate:
On December 2, 2011, two pieces of legislation were promulgated: the Act for Partial Revision of the Income Tax Act, etc. for the Purpose of
Creating Taxation System Responding to Changes in Economic and Social Structures and the Act on Special Measures for Securing Financial
Resources Necessary to Implement Measures for Reconstruction following the Great East Japan Earthquake. Accordingly, the effective statutory tax rate used to calculate deferred tax assets and deferred tax liabilities (only those that are expected to be scheduled on or after April 1,
2012) in the fiscal year was changed from the 40.6% used in the previous fiscal year to 38.0% for those that are expected to be scheduled in
the period from April 1, 2012 to March 31, 2015, and to 35.6% for those that are expected to be scheduled on or after April 1, 2015.
As a result of this change, net deferred tax assets (less deferred tax liabilities) decreased by ¥210 million, income taxes-deferred recorded in
the fiscal year increased by ¥199 million, and net unrealized gains (losses) on other securities decreased by ¥11 million.

33

16. 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
2.Environmental equipment(1) Sales, profits or losses, assets and other items by reportable segments
Millions of Yen
2012
Reportable segments
Adjustments/
Time Information Environment
Total
Eliminations
Net sales:
Sales to third parties¥64,608¥23,539¥88,147–––––
Intersegment sales and transfers
		Total64,60823,53988,147–
Segment profit or loss
¥6,698¥2,278¥8,976( ¥3,059)
Segment assets¥43,908¥17,505¥61,413¥42,065
Depreciation and amortization
3,142
440
3,582
448
Impairment loss for fixed assets
–
87
87
–
Investments accounted for by the equity method
219
–
219
–
Capital expenditures
3,208
154
3,362
57

88,147¥5,917¥103,478
4,030
87
219
3,419

Millions of Yen
2011
Reportable segments
Adjustments/
Time Information Environment
Total
Eliminations

Consolidated

Net sales:
Sales to third parties
Intersegment sales and transfers
		TotalSegment profit or loss
Segment assets
Depreciation and amortization
Investments accounted for by the equity method
Capital expenditures

Net sales:
Sales to third parties
Intersegment sales and transfers
		TotalSegment profit or loss
Segment assets
Depreciation and amortization
Impairment loss for fixed assets
Investments accounted for by the equity method
Capital expenditures

Consolidated¥88,147–¥61,790¥21,513¥83,303

–

–

–

–

–

–

61,790¥5,717¥34,549
3,455
259
2,864

21,513¥1,474¥27,519488–
119

83,303¥7,191¥62,068
3,943
259
2,983

–
( ¥2,808)¥40,865408–
46

83,303¥4,383¥102,933
4,351
259
3,029

Thousands of U.S. dollars (Note 5)
2012
Reportable segments
Adjustments/
Time Information Environment
Total
Eliminations

Consolidated$787,902$287,061$1,074,963

–

–

–

787,902$81,683$535,463
38,317–
2,671
39,122

287,061$27,780$213,476
5,366
1,061
–
1,878

1,074,963$109,463$748,939
43,683
1,061
2,671
41,00034–––($37,304)$512,988
5,463
–
–
695

¥83,303$1,074,963–

1,074,963$72,159$1,261,927
49,146
1,061
2,671
41,695

(2)Supplementary Information(a) Geographic segments
Information by geographic areas based on location for the years ended March 31, 2012 and 2011, is summarized as follows:

Net sales:
Customers
Intersegment
		TotalOperating income

Net sales:
Customers
Intersegment
		TotalOperating income

Net sales:
Customers
Intersegment
		TotalOperating income

Domestic(in Japan)

Asia¥66,413
1,609
68,022¥8,696¥6,453
199
6,652
¥593

Millions of Yen
2012
Overseas
Total
North America Europe¥9,423126
9,549( ¥79)¥5,85814
5,872( ¥221)¥88,147
1,948
90,095¥8,989Eliminations/ Consolidated
Corporate
Total–( ¥1,948)(1,948)( ¥3,072)¥88,147–
88,147¥5,917

Domestic(in Japan)

Asia

Millions of Yen
2011
Overseas
Total
North America Europe¥62,407
1,629
64,036¥6,868¥5,495
76
5,571
¥592

¥10,036
148
10,184( ¥108)Domestic(in Japan)

Asia

Thousands of U.S. dollars (Note 5)2012
Overseas
Eliminations/ Consolidated
Total
Corporate
Total
North America Europe$809,915
19,622
829,537$106,049$78,695
2,427
81,122$7,232¥5,36532
5,397( ¥195)$114,914
1,537
116,451($963)$71,439
171
71,610($2,696)¥83,303
1,885
85,188¥7,157

Eliminations/ Consolidated
Corporate
Total–( ¥1,885)(1,885)( ¥2,774)¥83,303–83,303¥4,383$1,074,963– $1,074,963
23,757 ($23,757)–
1,098,720 (23,757) 1,074,963$109,622 ($37,463)$72,159(b) Overseas sales
Overseas sales for the years ended March 31, 2012 and 2011 are summarized as follows:
Millions of Yen
Thousands of U.S.dollars (Note 5)
2012
2011
2012
Overseas sales
Asia¥7,032¥5,728$85,756
North America
9,427
10,041
114,963
Europe5,858
5,365
71,439Others
173
146
2,110
Total
¥22,490¥21,280$274,268
Percentage of overseas sales
to consolidated net sales

25.5%

25.5%

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

17. Per Share Data
Net assets and net income per share as of and for the years ended March 31, 2012 and 2011:

Amounts per share
Net assets
Net income:
Basic

2012

Yen

2011

U.S.dollars (Note 5)2012¥940.07¥945.23$11.464

31.52

40.01

0.384

35

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 NAKAJIMAOMIYA System Center
FACILITIESTOKYO System Center

YOKOHAMA Facility

SHINAGAWA System Center

Executive Officer & Representative Director

TSUKUI Facility

SHINJUKU System Center

Haruhiko YAMAGUCHIHOSOE Facility

TACHIKAWA System Center

MIYAKODA Facility

NAGANO System Center

Director & Managing Operating Officers

NIIGATA System Center

Minoru KOYAMASALES OFFICESKANAGAWA System Center

Nobuyuki TABATA

75 Sales Officers Located in major cities,

SHIZUOKA System Center

Hiroshi SHIRAISHI

including

NAGOYA System Center

Naoki NAKADA

KANAZAWA System Center
TOKYO Office

OSAKA System Center

Director & Operating Officers

YOKOHAMA Office

KOBE System Center

Kenji KOHORINAGOYA Office

HIROSHIMA System Center

Toru UENOOSAKA Office

TAKAMATSU System Center

SAPPORO Office

FUKUOKA System Center

Corporate Auditors

SENDAI Office

Toshio KUSANAGIOMIYA Office

DOMESTIC SUBSIDIARIES

Tsuyoshi FUJIWARA

NAGANO Office

AMANO BUSINESS SOLUTIONS CORPORATION

Satoru UENONIIGATA Office

ENVIRONMENTAL TECHNOLOGY CO., LTD.

Yoshiyuki SATO

HAMAMATSU Office

AMANO MANAGEMENT SERVICE CORPORATIONKANAZAWA Office

AMANO MAINTENANCE ENGINEERING CORPO-Managing Operating Officer

KYOTO Office

RATION

Masamiki KONNOOKAYAMA Office

AMANO MUSASHI ELECTRIC CORPORATIONHIROSHIMA Office

AMANO AGENCY CORPORATION

Operating Officers

TAKAMATSU Office

Bungo NOGAWAFUKUOKA Office

Takeshi AKAGI
Isao TERASAKI
Kunihiro IHARA
Morio KANEKO
Osamu OTANI
Yuhiko HASHIDUME
Minoru YONEZAWA
Susumu IKOMA

36

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

11. AMANO UK. LTD.
		PARKING DIVISION

		140 Harrison Avenue Roseland,
New Jersey 07068 U.S.A.

		
8 Newhouse Business Centre, Old Crawley
Road, Horsham, West Sussex, RH12 4RU
		TIME DIVISION

2. AMANO CINCINNATI,INC.
		HEAD OFFICE		1415 Charlton Court, Gloucester Business
Park, Brockworth, Gloucester, GL3 4AE

		140 Harrison Avenue Roseland,
New Jersey 07068 U.S.A.

12.AMANO TIME&PARKING SPAIN S.A.

20.		 TIME STAMP SOLUTION CORPORATION

		#411, Woolim e-BIZ Center2,
Yangpyeong-Dong 3Ga,
Yeongdeungpo-Gu, Seoul, Korea
21.AMANO INTERNATIONAL
TRADING(SHANGHAI)CO.,LTD.
		HEAD OFFICE

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

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

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

13. HOROSMART, S.A.
		CORPORATE HEADQUARTERS

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

4. AMANO CINCINNATI CANADA INC.

		Tour CIT, 3 rue de l'Arrivée 75015 Paris,
France3. AMANO CINCINNATI,INC.
		OHIO FACTORY

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

14. HOROQUARTZ, S.A.
		HEAD OFFICE

5. AMANO PIONEER ECLIPSE CORPORATION

		Tour CIT, 3 rue de l'Arrivée 75015 Paris,
France		1 Eclipse Road, Sparta, North Carolina
28675-0909 U.S.A.

15. HOROQUARTZ MAROC, S.A.
6. AMANO McGANN, INC.
		HEAD OFFICE		67, Bd Al Massira Al
Khadra Mâarif 20100 Casablanca,
Kingdom of Morocco		651 Taft Street NE, Minneapolis,
Minnesota 55413 U.S.A.

16.		 SCOPUS-OMNIBADGES, S.A.

7. ACCU-TIME SYSTEMS, INC.

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

		No.12, Jalan Pengacara U1/48, Temasya
Industrial Park 40150 Shah Alam, Selangor Darul Ehsan, Malaysia

		19 rue Nicolas Leblanc, 33700 Mérignac

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

25.		 AMANO TIME&AIR SINGAPORE PTE.LTD.
17. PIAL TECHNOLOGIES, S.A.

		ZI route de Niort BP 251 85205
Fontenay-le-Comte, France

8. ACCU-TECH SYSTEMS, Ltd.

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

18.		 AMANO KOREA CORPORATION		HEAD OFFICE

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

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

		Westerring 2, 3600 Genk, Belgium

		BIk 213 Henderson Road, #04-06/07
Henderson Industrial Park Singapore
15955326.		 PT.AMANO INDONESIA

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

10. AMANO EUROPE, N.V.
		CORPORATE OFFICE

19. @PARK KOREA, LTD.

		#408 Woolim e-Biz Center2,
Yangpyeong-Dong 3Ga,
Yeongdeungpo-Gu,Seoul,Korea

		Westerring 2, 3600 Genk, Belgium

8,11
13,14,16,17

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

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

9,10
6

12
18,19,20

15

AMANO CORPORATION

21,22

23,24

27
25
26

37

4
3
5

1,2,7

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

CAT-115100
K9706A3-2012.6