FINANCIAL REPORT
April 2007 March 2008
1. Basic Management Policy
Throughout its history, Amano has adhered to a basic policy of putting the customer irst. This has meant paying heed to what its customers say, based on the corporate themes of “people and time” and “people and the environment,” and giving pivotal im- portance to customer satisfaction throughout its business activities, particularly in sales, production, and development activities.
In accordance with this fundamental policy, Amano continues to undertake business activities with the goal of earning the trust and high regard of all those who support it: customers, employees, shareholders, suppliers and other entities with which it does business, and the local community. It achieves this by providing a variety of products, systems, services, and solutions that match the needs of customers in relation to the themes of “people and time” and “people and the environment.”
Amano and its Group companies direct their efforts towards maximizing corporate val- ue by fostering innovation in management and by ensuring a strong earnings structure and sustained growth in business performance.
2. Basic Policy on Distribution of Proits, and Dividend for This and Next Term
One of the issues to which Amano devotes most importance is its policy for dividends to shareholders. Fundamental to this is its policy for the return of proit to shareholders, based on maintaining a stable ordinary dividend of ¥ 26 annually (¥13 interim and ¥13 year-end), together with appropriate results-based distributions and lexible purchasing of treasury 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, we plan to pay a year-end dividend of ¥17 per share, the same amount paid at the end of the previous year. As a result, the annual per-share dividend will rise by ¥4 from the previous year to ¥34, including the ¥17 per share paid as the interim dividend. This corresponds to a payout ratio of 44.8% on a consolidated basis, and a 3.2% ratio of dividends to net assets.
Retained earnings will be used 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 ields, strategic invest- ment in growth ields, and spending on research and development, as well as the ra- tionalization of production plant and equipment for the purpose of reducing costs and further improving product quality.
With regard to the dividend for the next iscal year, we will continue our efforts to im- prove business performance, and will aim to pay a dividend for the year of ¥34 (interim dividend of ¥17, and year-end dividend of ¥17).
From the iscal year ending March 31, 2009, the Company has introduced the concept of an overall distribution ratio (return to shareholder ratio) combining dividends and purchase of treasury stock. Having given due consideration to inancing requirements, the new medium-term management plan for iscal 2008 to 2010, which began in April 2008, aims to improve capital eficiency by setting a target igure of 60% for the return to shareholder ratio for each iscal year.
Management Policy
3. New Medium-Term Management Plan
Amano and its Group companies each continue the tradition of evolving continuously in response to changes in the times, while maintaining the following four immutable strategies of the Amano Group.
1) Emphasis on Time & Ecology business ields, and enhancement of core business 2) Being a niche leader in the business ields in which we excel
3) Constant restructuring
4) Management based on cash low
Based on these four fundamental strategies, in April 2008 Amano inaugurated a new three-year medium-term management plan. An outline of the plan is set out below.
(1) Basic Policies
Building on the success of the previous management plan, which aimed at “a strong proit structure and sustainable growth,” under the new medium-term management plan Group companies will forge ahead together to achieve sales of ¥114,000 mil- lion and operating profit of ¥12,700 million by the fiscal year ending March 31, 2011, the inal year of the new plan. This goal will be achieved by positioning new Group companies Amano McGann, Inc. of the U.S. and Horoquartz, S.A. of France as key drivers for global development of parking system and information system busi- nesses, particularly in the U.S. and Europe, as well as focusing on business expan- sion in Japan.
In order to bring this plan to fruition, we will address the following priority issues.
1. Business Strategy
• Expanding business in the North American and European markets
In North America we will merge Amano McGann’s parking management systems with Amano Group systems and equipment, and expand the market for parking systems by strengthening direct sales structures to work closely with customers in proposing solutions. In Europe we will merge Horoquartz’s French customer base, systems and equipment with Amano Group systems and equipment. We will also ex- pand our information system business in the French market and use this as a spring- board for expansion into the wider European market, including the U.K. and the Benelux region.
• Expanding business in the Japanese market
In the Japanese market we will reinforce ties with domestic group companies, par- ticularly in the information system and parking system ields. We will also further expand our existing customer base and create new markets by strengthening our ser- vice and total solution capabilities and launching new products.
2. Enhancing Proitability
• Boosting proitability in the information system and parking system businesses
In overseas markets we will increase profitability by implementing our business strategies for Amano McGann and Horoquartz to maximize these proitable compa- nies’ contribution to consolidated results. This will be achieved through increased sales in the North American and European markets, particularly sales of high-added- value products. As for the Japanese market, in the information systems ield we will continue to standardize large-scale solution systems and increase added value by expanding sales of software to small and medium-sized businesses. In the parking systems ield we will boost proitability by developing cost-competitive products and strengthening cost control for each site.
(2) Numerical Targets
The Company aims to achieve the following consolidated results by the iscal year ending March 31, 2011, the inal year of the new medium-term management plan.
Management Plan Target Results (Unit: Millions of yen)
Year ending March 31, 2009 - (Plan) Year ended March 31, 2010 - (Plan) Year ending March 31, 2011 - (Plan) Amount YOY change (%) Amount YOY change (%) Amount YOY change (%)
Net sales 101,000 8.2% 107,500 6.4% 114,000 6.0%
Operating profit 9,800 (2.1%) 11,300 15.3% 12,700 12.4%
Operating profit to sales 9.7% − 10.5% − 11.1% −
Ordinary profit 9,900 (6.0%) 11,200 13.1% 12,700 13.4%
Net income 5,200 (14.8%) 6,100 17.3% 6,900 13.1%
Kaoru Haruta President and CEO
Analysis of Business Results
Although the Japanese economy generally continued its slow recov- er y during the year under review against a backdrop of strong corpo- rate performance buoyed by expan- sion in overseas economies and the relaxed monetary environment, un- certainty over the future grew in the face of price hikes for oil and other raw materials and confusion in inter- national inancial markets stemming from the subprime mortgage issue in the U.S.
Amid this operating environment, throughout the Group we pursued the building of “a strong proit struc- ture and sustainable growth,” the management concept that underlies the plan for the final year of our third medium-term management plan, which began in April 2005. Par ticular effor t was devoted to strengthening our marketing capabil- ity by broadening the customer base and expanding our service business, and to enhancing cost-competitive- ness by such means as cutting ixed costs, reducing prime costs, and rais- ing productivity.
During the year the Company re- corded sales of ¥93,351 million, up by 8.8% year-on-year. Although oper ating profit fell by 1.3% to
¥10,011 million, overall proitability increased, with ordinary proit up by 3.2% to ¥10,534 million and net in- come up by 2.4% to ¥6,104 million. The following is an over view by business division:
Sales by business division
(Unit: Millions of yen)Year ended March 31, 2007
Year ended
March 31, 2008 Change
April 1, 2006, to March 31, 2007 April 1, 2007, to March 31, 2008
Amount Ratio (%) Amount Ratio (%) Amount % Time Information System Business
Information Systems 14,674 17.1 16,266 17.4 1,592 10.8
Time Management Equipment 7,296 8.5 6,628 7.1 -668 -9.2
Parking Systems 33,738 39.4 40,062 42.9 6,324 18.7
Subtotal 55,708 65.0 62,956 67.4 7,248 13.0
Environment System Business
Environmental Systems 20,171 23.5 20,808 22.3 637 3.2
Cleaning Systems 9,890 11.5 9,587 10.3 -303 -3.1
Subtotal 30,061 35.0 30,395 32.6 334 1.1
Total 85,769 100.0 93,351 100.0 7,582 8.8
Time Information Systems Business
Information Systems:
• Time & attendance (T&A), payroll, human-resource management, access control, cafeteria manage- ment systems
Time Management Equipment:
• Time recorders, time stamps Parking Systems
• Parking lot and bicycle-parking space management equipment, management services
Information Systems
Compliance with the Financial Products Transaction Law (Japanese equivalent of SOX in the U.S.) has expedited the building of internal control systems, many companies are reviewing core systems, and the Labor Standards Inspection Ofice is under- taking stricter monitoring of unpaid over time and long working hours (overwork) from a health perspective. Consequently demand remains robust in the domestic market for this busi- ness division as companies review and rebuild employment systems with the aim of appropriately managing work- ing hours.
To meet these trends in demand, Amano has been devoting consid- erable energy to expanding its op- erations, by means such as increasing systems engineers for solutions aimed at large companies, strengthening its marketing strategy for small and medium-scale business establishments, launching new T&A system terminals, making stronger proposals featuring comprehensive IC-card-based systems and proposing solutions that match customer needs.
Hardware sales rose by ¥847 million, or 13.5%, from the previous year, soft- ware sales were up by ¥284 million, or 7.1%, and sales generated by main- tenance and supply operations in- creased by ¥156 million, or 5.3%. The increase in hardware sales was buoyed by growth in large orders from pur- chasers including railway companies, municipal governments, department stores and other retailers as a result of the strengthening of our structure for marketing solution systems to large corporations. The growth in software sales was driven by a fourth-quarter resurgence in orders, particularly from medium-scale business establishments. Sales in the ield of T&A systems rose by ¥765 million, or 7.7%, while in the field of access control systems they increased by ¥134 million, or 9.7%. Overseas, sales increased in North America due to robust results in ac- cess control business. In Europe sales declined slightly in local currency terms but rose once adjusted for ex- change rate luctuations. Revenues in Asia fell. Overall, overseas sales were up by ¥166 million, or 15.5%.
As a net result of the above, overall sales in this business division totaled
¥16,266 million, representing an in- crease of 10.8% from the previous year.
Time Management Equipment
Sales in this segment within Japan remained sluggish during the period
under review. Market volume re- mained static, and demand for time recorders showed no signs of recov- ery, becoming increasingly polarized between low-priced equipment and incorporation into systems.
Domestic unit sales and sales rev- enue in this business division both declined. Export unit sales increased, but sales revenues remained lat due to low-priced equipment represent- ing a larger proportion of sales. Ag- gregate domestic and export sales fell by ¥213 million, or 4.4%. With regard to overseas business performance, revenues declined in North America owing to the con- tinued suspension of the handling of time recorders by large mass retail- ers, but they rose in Europe, in part because of fluctuations in foreign exchange conversion rates. Rev- enues in Asia fell. Overall, overseas sales were down by ¥491 million, or 15.1%.
As a result of the above, the Time Management Equipment Division generated sales totaling ¥6,628 mil- lion, down by 9.2% from the previ- ous year.
Parking Systems
As the domestic parking lot market for cars matures, market expansion is tending to focus on public bicycle parking lots, with municipal gov- ernments, in par ticular, developing plans to introduce new systems for bicycle parking and revision of the
BX1500
AGX100A
Road Law enforcement ordinance enabling the installation of bicycle parking facilities on sidewalks. In addition to the steady parking lot equipment renewal market, new demand has been created in areas including crossing gates that permit toll collectors to cross safely on dedicated ETC lanes on express- ways and gate systems controlling entr y and exit of vehicles to and from sites such as factories.
Amid this market environment the Company has been devoting efforts to expanding its ields of operation, including by strengthening its strate- gies for renewal markets, expanding bicycle parking lot business, and cul- tivating the market for gate systems. Broken down by product, overall sales of system devices rose by
¥673 million, or 4.2%, from the pre- vious year, including an increase in bicycle parking lot system sales of
¥372 million, or 49.1%. Revenues from maintenance and supply oper- ations rose by ¥416 million, or 5.5%. The number of units managed un- der commission by Group subsid- iar y Amano Management Ser vice Corporation increased by 21,700, or 20.3%, from the end of the previ- ous year, and the company's perfor- mance is making steady progress. Signiicant sales growth was achieved in all overseas operations. Sales in North America increased by a wide margin, buoyed by the impact of the acquisition of Amano McGann, Inc. and Amano Integrated Systems, Inc. Sales in Europe beneited from vig- orous activity in the Spanish market, while Asian sales were powered by the ongoing briskness of the Korean market. In consequence, total over- seas sales increased by ¥5,312 mil-
lion, up by 79.7% year-on-year. The net result of the above devel- opments was that sales in this divi- sion totaled ¥40,062 million, repre- senting an increase of 18.7% from the previous year.
Environment System Business
Environmental Systems:
• Standard dust collectors, large dust collection systems, pneumatic powder conveyance systems, high-temperature hazardous-gas removal systems, deodorization systems, electrolytic water genera- tors
Cleaning Systems:
• Cleaning equipment, dr y-care cleaning systems, cleanliness man- agement services
Environmental Systems
In the domestic market this business division was affected by cautious attitudes toward capital investment from the third quar ter, resulting from uncer tainty about the future of the economy.
In response to this economic envi- ronment, Amano has strengthened environmental management efforts aimed at compliance with environ- mental legislation and reduction of environmental impact, reinforced marketing strategies relating to safe-
ty and security, and focused on mini- mizing the impact of the economic slowdown.
The Company has also strength- ened links with group companies in Southeast Asia to reinforce cooper- ative sales structures targeting Japa- nese companies that are expanding into the Asian region.
In the standard equipment segment sales fell by ¥185 million, or 2.6%, due to the impact of a downward trend in capital investment. Although capital investment levels var ied among industries, demand for large- scale systems was generally robust, and sales of such systems rose by
¥551 million, or 7.7%. Demand for maintenance ser vices increased amid growing awareness of the need for compliance with environmental management laws and regulations, and revenues from maintenance and supply operations rose by ¥116 mil- lion, or 2.8%.
Over seas operations performed well, primarily because of orders for large-scale systems received from Japanese companies in the Asian re- gion. Sales were up by ¥157 million, or 14.7%.
As a result of the above, the sales of this business division rose by 3.2% year-on-year, to ¥20,808 million.
NT-7900
Pneumatic powder conveyance system test plant
larly for small loor cleaners, as re- tailers open more stores and switch some of their cleaning from contrac- tors to in-house.
Sales of floor cleaning equipment increased, especially to factories, due to the introduction of new com- pact models. However, lower sales of buffing machines caused overall cleaning equipment sales to de- cline by ¥132 million, or 4.3%, from the previous year. Revenues from maintenance and supply operations were up by ¥144 million, or 4.6%, as cleaning management business per- formed strongly.
Over seas, sales in this segment declined in Nor th America, where
Outlook for the Fiscal
Year Ending March 31,
2009
As the slowdown in the European and U.S. economies worsens, gen- erally robust expor ts to emerging markets such as China and India will continue to bolster economic conditions in Japan. However, there are a number of causes for concern including the negative impact of raw material price hikes on corporate profitability, and overall the risk of
an economic downturn is increasing. Amid this economic environment, Amano Corporation and its group companies have launched a new medium-term management plan covering a period of three years from April 2008, as outlined below. In line with the group growth strate- gies set out in the plan, we will work to improve proitability by ongoing growth driven by global develop- ment of markets and products in each of our business fields and expanding our comprehensive solu- tions business through new business
Cleaning Systems
This business division faced an in- creasingly dificult operating environ- ment as general merchandise stores and convenience stores within Japan continued to switch to cer amic looring materials in order to reduce loor maintenance costs, causing an ongoing decline in acquisitions of bufing machines for loor polishing. However, demand for loor cleaning machines continues to grow each year as manufacturers improve fac- tory work environments and strive to make cleaning operations more eficient and less burdensome. New
demand has also emerged, particu- SE-640e
there were no signs of a recovery in demand, and sales in Asia were also sluggish. In consequence, overall sales declined by ¥353 million, or 12.2%, year-on-year.
As a result of the above, the sales generated in this segment totaled
¥9,587 million, down by 3.1% from the previous year.
and stronger links with group com- panies in Japan.
The following business results are projected for the fiscal year end- ing March 31, 2009: Sales ¥101,000 million, oper ating profit ¥9,800 million, ordinary profit ¥9,900 mil- lion, and net income ¥5,200 million. Although interest rate trends in key economies and other factors remain uncertain, the above projections as- sume currency exchange rates of US$1 to ¥100 and €1 to ¥155.
Analysis of Financial Condition
Analysis of Assets, Liabilities and Net Assets
• Assets
Current assets amounted to ¥60,738 million, down by ¥9,032 million, or 12.9%, from the previous fiscal year- end. This was chiely due to a decline in cash and bank deposits.
Fixed assets totaled ¥56,213 million, up by ¥14,496 million, or 34.7%, from the previous fiscal year-end. This was primarily the result of an increase in intangible ixed assets.
• Liabilities
Cur rent liabilities amounted to
¥24,417 million, up by ¥2,374 mil- lion, or 10.8%, from the previous iscal year-end. This was attributable primarily to a rise in accrued ex- penses and other liabilities.
Long-term liabilities totaled ¥6,227 million, up by ¥404 million, or 6.9%,
from the previous fiscal year-end. Deferred tax liabilities were the main factor behind this increase.
• Net Assets
Net assets amounted to ¥86,307 million, up by ¥2,686 million, or 3.2%, from the previous fiscal year-end. The principal factor behind this was an increase in retained earnings.
• Analysis of Cash Flows
Due to vigorous investment activity, consolidated cash and cash equiva- lents declined by ¥13,498 million, or 44.0%, year-on-year, to a total of
¥17,192 million at the year-end. The following is a description of the sta- tus of each type of cash low during the year, and the underlying factors.
• Cash low from operating activities Net cash provided by operating activities totaled ¥9,362 million, up by ¥2,260 million, or 31.8%, from the previous year. This was attrib-
utable primarily to an increase in depreciation and amortization and a decrease in inventories.
• Cash low from investing activities Net cash used in investing activities was ¥20,417 million, representing an increase of ¥11,583 million, or 131.1%, from the previous year. The principal factor behind this was the purchase of shares in subsidiaries for company acquisitions associated with expansion of global operations.
• Cash low from inancing activities Net cash used in inancing activities totaled ¥2,697 million, representing a year-on-year increase in expendi- ture of ¥680 million, or 33.7%. This was chiefly due to an increase in parent company dividend payments.
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
1. All indicators are calculated on the basis of consolidated financial values.
2. 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). 3. Cash flow from operating activities refers to cash flow from operating activities posted under the consolidated
statements of cash flows. Interest-bearing debt refers to those of the liabilities stated in the consolidated bal- ance sheets on which interest is paid. Interest payments equate with interest paid stated in the consolidated statements of cash flows.
Reference: Trend of cash low indicators
At Mar. 31, 2004 At Mar. 31, 2005 At Mar. 31, 2006 At Mar. 31, 2007 At Mar. 31, 2008
Equity ratio (%) 75.5 72.5 74.8 74.4 73.0
Fair value equity ratio (%) 76.6 95.0 156.0 103.6 70.6
Ratio of cash flow to interest-bearing liabilities (%) 30.4 26.0 42.2 36.2 17.5
Interest coverage ratio 165.7 255.8 88.1 125.3 166.6
Operating and Other Risk
Among the matters relating to the qualitative information contained in this financial report and relating to the consolidated inancial statements, the following are those that could be envisaged as having a possible material impact on investors.
Matters that are considered to be po- tential risk factors in the undertaking of business by the Amano Group ei- ther now or in the future are estimat- ed to the greatest extent possible, and the risk factors are then addressed and eliminated in the course of busi- ness activities.
Matters relating to the future are those that are adjudged to be so as of the date of the release of these inan- cial results (May 8, 2008).
(i) Impact on earnings of changes in the operating environment The Amano Group uses its accu- mulation of unique technologies and know-how to provide customers with high-quality products, services and solutions, gaining large market shares in each sphere of business in Japan, North America, Europe and Asia, and developing business globally.
In the year ended March 31, 2008, the time information system business accounted for 67.4% of total sales, and the environment system business accounted for 32.6%. Before deduc- tion of unallocated expenses the time information system business contrib- uted 67.1% to operating proit, while the environment system business con- tributed 32.9%. In terms of weighted average sales over the most recent five years, time information system
business accounted for 65.9% of total sales and for 73.9% of operating proit. With respect to future risk factors, in each business activity within the time information system business segment, which accounts for a large proportion of the Group's business, if market ex- pansion is expected for such reasons as a signiicant change in the demand structure or the creation of a new market, it can be expected that this will attract entry by entities in other industries or by other powerful com- petitors. In that event, if a competitor were to enter with innovative prod- ucts or solutions that surpass Amano’s, the Amano Group’s market advantage would decline, and that may have a material impact on its business perfor- mance.
(ii) Fluctuations in exchange rates The Group engages in business activities on a global scale and has production and sales bases overseas. In view of this, the Group's business results may be im- pacted by luctuations in exchange rates when transaction amounts overseas are translated into yen.
(iii) Information security
In order to offer system solutions and undertake application service provider business, the Amano Group handles confidential information such as per- sonal information concerning custom- ers or provided by customers. In view of this, the Group has developed a structure for the management of con- idential information, implements thor- ough staff training, and uses software to prevent leaks of information for the purpose of preventing network access to confidential information and of preventing leaks of conidential infor-
mation through the removal of data and information. To that end it has also established a committee to manage the protection of personal informa- tion, so as to ensure a foolproof struc- ture. Nevertheless, in the event that an unforeseen situation were to arise, and information of the kind described above were to be disclosed externally, resultant factors such as loss of coni- dence may have a material impact on the Group’s business performance.
Issues to be Addressed
The company will take the following steps to achieve the goals set out in its new medium-term management plan. 1) Time information systems
• Information systems business Amid continuing efforts by labor au- thorities to more strictly monitor un- paid overtime and long working hours (overwork) in order to eradicate these practices, the market is expand- ing as companies review or introduce T&A systems aimed at appropriately managing working hours.
Given the positive impact on business of this market environment, we aim to further expand T&A solutions business targeted at both large companies and the public sector, launching enhanced software and strengthening marketing structures by increasing system engi- neers. We also aim to expand business in the door security ield, where the enforcement of the Law Concerning the Protection of Personal Informa- tion has raised the priority placed on control of access to ofices in which personal information is handled. To enhance the profitability of this business we will cut costs by stan- dardizing system software for our solutions business and expand sales of standard software packages to small and medium-scale business es- tablishments, so as to boost earnings capacity.
Overseas, we aim to merge the cus- tomer base, systems and equipment of newly-acquired Group company Horoquar tz (France) with Amano systems and equipment in the aim of increasing business in the French
market and using this as a spring- board to extend sales channels across Europe as a means of ex- panding our business in this region.
• Parking systems business
Amid growing use of electronic money, parking systems business is likely to beneit from shorter equip- ment renewal cycles as parking lot operators replace equipment that is not compatible with e-money. We will meet the demands of the re- newal market by steadily offering re- placement purchasers added-value products with in-built IT functions and comprehensive solutions that include parking lot management. We will also increase sales of systems equipment to meet the market for bicycle parks that has arisen as a re- sult of the problem of illegal parking of bicycles, and take further steps to expand the market for expressway- crossing safety gates and gate sys- tems controlling entry and exit to and from sites such as factories. In order to boost profitability, we will make efforts to standardize spe- cial-order products and strengthen proit control for each site.
Overseas, we aim to expand busi- ness and establish ourselves as the top manufacturer of parking systems in the Nor th American market by leveraging the strengths of newly- acquired Group company Amano McGann, Inc. to reorganize our sales organization with a view to building closer relationships with customers. We also aim to secure the largest market shares in Europe and Asia, proactively expanding our global op- erations.
2) Environment systems
• Environment systems business In environment systems business, heavy demands are being made on companies to fulfill their responsi- bility to society by complying with environment-related laws and regu- lations in their plants, and by making effor ts to reduce the burden they place on the environment.
Given these circumstances, we will strengthen our new-product devel- opment capabilities to help reduce environmental impact, launch new products to match the reduction in size and the diversification of ma- chine tools, and enhance our lineup of dust-explosion-proof technolo- gies to raise safety standards. We also aim to expand maintenance business and fur ther strengthen proit control for each site in order to boost proitability. Finally, we will build robust business str uctures capable of withstanding economic luctuations.
In overseas markets, we will expand business in Asia by building stronger ties with overseas Group companies in order to enhance our ser vices to Japanese companies operating in China, Thailand, and other Asian countries.
3) Human resource development Recognizing that people are the most impor tant management re- source for the operation of our business, we have positioned human resource development as a priority issue and will focus on developing employees who have no fear of change and are willing to meet the challenges.
Information Systems
Strengthen Door Security Business From Single-Door to Multi-Door market New Access Control System
“Access Control System” linked to one of our most specialized busi- nesses, “Time & Attendance Infor- mation Systems”, is enjoying great success. Amano’s holistic solutions, including a wide variety of security products that can be systematically expanded flexibly upon customer’s requirements with use of one single IC employee ID card, facilitate building “Office Security.” The “Ac- cess Control System” with new concept is connected via real-time communications to the “TimePro- XG Entr y Management Software” now in progress of development. Fur thermore, this new system can be upgraded to a full-scale “Door Security Management” with the sys- tem detecting the status of the door, and managing the history of access. Amano continues expanding the market of single-door access, which has proved a great success, to larger system market by strengthening the products lineups such as New Ac- cess Control Terminal (RX-200F) with Random Ten-Key Pad and Stan- dard Model (RX-100F).
Time Management Equipment Strengthen Sales of PC-connected Time Recorder “TimeP@CK”
Free seminar hosted by sales ofices is expanding across the country
P C - c o n n e c t e d T i m e R e c o r d e r
"TimeP@CK" designed for small-
size/group has won a position to be branded as an industry standard.
"TimeP@CK Professional" with higher level of management to professional requirements was also added to shore up the products lineups, receiving good market ac- ceptance. With highly personalized suppor t provided by our trained instructor to sales channel, including TimeP@CK demonstration seminar
<<TimeP@CK USEum>> hosted by sales offices on a regular basis across the countr y, or well-devel- oped sales promotion tools such as Internet website, Amano continues boosting sales activity in this area.
Parking Systems
Improve Manners to Provide Pleasant and Safe Town Planning!!
On-street Bicycle Park Management System around Nagoya Station From May 2008, the bicycle park- ing around Nagoya Station and Kokusai Center Station star ted to charge fees. Although bicycles and motorized bicycles are convenient and useful means of transportation, if they are left on sidewalks with- out any careful consideration, they not only become a pedestrian's passage obstacle, but they also be- come a cause of trafic accident or an obstacle to emergency rescue by a fire tr uck or an ambulance. Nagoya city has designated a radius of about 500-meter of Nagoya Sta- tion area (Nakamura-ku and Nishi-
ku) as a prohibited bicycle parking and tow away area. Moreover, they have started to charge the area to- tally, and crack down unauthorized bicycle parking and remove unat- tended on-street bicycles. The size of the charged bicycle parking is about 5,800 spaces including contracted parkers. Amano’s 24/7 Bicycle Park Management System exactly meets the requirements as intended. The new Road Trafic Law (Jan. 2007) is in place, to allow private sectors, if legally approved for occupancy of roads, to build an on-street bicycle parking system.
The new effor t is being actively promoted with the cooperation be- tween the public and private sectors to provide pleasant and safe town planning throughout the nation. Double-digit Growth Continuing with Proven Know-how “Management/Com- mission Services for Parking”Amano Management Service Corporation Riding on the strength of grow- ing trend toward outsourcing, and by meeting the customers’ needs for “Parking management expense reduction” along with “Efficient par king management,” a group company "Amano Management Ser vice Cor por ation (AMS)" is steadily expanding the number of parking lots with their management ser vices. AMS star ted with about 5,000 parking spaces with their ser- vices at the time of the company was established, and with abundant know-how, they have increased the number 26 times during the past 10 years with double-digit growth. In addition to enhancing ser vicing capability for public/wide-area ser- vice organizations, "AMS Customer Suppor t Center" where dedicated operators quickly and professionally respond to parking lot user's urgent calls, is growing its mobility and ser- vicing capability. With the Authorized
Demonstration Seminar
Business Activities
Management System introduced, encouraging local governments to commission the management to private sectors, AMS is expected to accelerate its growth.
Environmental Systems Strengthen sales capability in the regions of South East Asia
Strengthen Sales Forces for Japanese Companies Advancing into Asia Large Dust Collection Systems
Environmental Systems Business is growing in sales, receiving more order s for lar ge dust collection systems as a result of expansion of sales channel in Asian market and co-wor king with sales organiza- tion in Japan. The business has been buoyed by increased advances of Japanese companies (leading car manufacturer s, r ubber products manufacturers, etc.). into the regions. They are wining faith and trust from customers by providing one-stop services, ranging from sale, design, installation, repair to maintenance. In Shanghai, China, Amano’s subsid- iary company, “Amano International Trading (Shanghai) Co., Ltd. “ is ex- panding their sales channel such as
Tianjin Ofice, Shenzhen Ofice and Beijing Office. They are especially boosting their sales in Huabei area. Moreover, in addition to Amano’s subsidiar y companies in Malaysia, Singapore, and Indonesia, "Amano Thai International Co., Ltd. (ATI)" was added in Thailand in January this year to grow in the regions.
Cleaning Systems
Strengthen Products Lineups of Clean- ing Machines for Commercial Market Automatic Floor Scrubbers with Pow- erful Cleaning and Suction Capability With increasing demand for au- tomatic floor cleaning machines, Amano’s lineups are growing for commercial markets and helping in- crease cleaning eficiency and reduce cleaning work. The standard models with growing sales such as “SE-430” and "SE-500" maintain its good po- sition as long seller models, meet- ing the current market needs. The models are equipped with the latest technologies and they are upgraded as required. The latest technologies include “automatic pad pressure against the floor,” “new squeegee” that leaves no waste water behind, and “cleaning pad” that gives the most efficient cleaning against new ceramic loors often used by super- markets and convenient stores to reduce maintenance costs.
Domestic Group Companies Amano Business Solutions Corporation Attendance / Payroll ASP Services Amano Business Solutions Corpo- ration (“ABS”), one of the Amano’ s group companies, provides ASP services (*1), dedicated to solutions of “Time & Attendance, Payroll and Human Resources” among Amano Time Information Systems.
In response to the directive issued
by Ministr y of Health, Labor and Welfare for “rules of appropriate management by employers for cap- turing accurate hours worked,” all companies in Japan are implement- ing reliable attendance management systems in compliance with the Labor Standard Law. Time Informa- tion Systems Business of Amano is steadily growing against the back- drop of this social requirement. As one of the systems that companies may choose to implement, the “Cy- berXeed Attendance/Payroll” ASP ser vice provided by ABS attracts much attention because it allows to build a Web system in a shor t period of time as long as PCs and Internet environment reside within the organization. The ASP Time & Attendance/Payroll ser vices pro- vided by ABS is expected to grow solidly as the ASP market grows as a result of advanced Internet technol- ogy.
(*1) ASP= Application Service Provider. A busi- ness or service that provides computer-based specialized software to customers over a net- work.
Employee
Section head
Data Center Customer
Human resources Customer
Outsourcing services dedicated to payroll, attendance & human resources management.
FIRE WALL Preparation of attendance schedules Correction of unpunched information Approval of requests Time & Attendance data Request data
Compiling of attendance data Output of attendance slips Checking of compiled data
Payroll processing
Payroll services
SAP R/3 HR Module
Operation Management Center
Services provider: AMANO Business Solutions Corporation Privacy Mark Au- thentication（＊１） Human re- source and payroll Attendance management services
Sharing employee's master data file Requests and Time & At-
tendance data can be provi- ded outside the office.
Internet
Parkers Help Call Response by
Operator AMS Customer Support Center
Maintenance Service technicians
If not resolved Service Called for
Request for attendamce
AMS Service vehicle
from Amano’s office Amano’s authorized Security Office
Amano Europe Holdings, N.V.
The strategy and vision for the next mid-term period;
Establish a customer-oriented organi- zation in Europe.
Amano Europe NV/SA was established as a sales ofice in Belgium in 1972 to pro- mote AMANO products to all European countries.
We have been promoting a) Time man- agement equipment, b) Time & attendance management systems, c) Access control systems and d) Parking management systems along with the local research and development activities.
ASE R&D Europe NV, one of the Europe- an subsidiary companies, was established as a software development company in 2001 to meet local customers’ requirements to their satisfaction. Highly skilled software en- gineers are developing our most-advanced products in the Bucharest development ofice in Romania.
Amano Europe always has been emphasizing the customer relationship. We believe that there is no shorter way to gain customer sup- port. On one hand, we conduct direct sales and marketing activities, on the other hand, we also work with local dealers in several Eu- ropean countries at the same time.
In 2007 Amano Europe felt the need to gear up in the ‘Time and attendance’ management business field. ‘Time and attendance’ management software has various requirements in each country like different regulations regarding ‘ Working hours ‘, ‘Overtime hours’, ‘Paid holiday’ and so on. At the same time T&A software is becoming an integrated part of the HR or work force management solutions driving us to offer HR total solutions, to be able to integrate to existing ERP systems and to become a single point of contact [SPOC] for our customer base. The ability to give the right answers to this evolution is essen- tial for our tomorrow’s success.
Because of that, Amano Europe has been looking for a corporate partner in the ield of ‘Time and at- tendance’ manage- ment software. The best matching partner turned out
to be the Horosmart group in France, for which both Horosmart and Amano found that synergy effects could be maximized. As a result, Amano Europe Holdings, NV/ SA acquired Horosmart group in January 2008. Horosmart Holdings consists of two companies; Horoquartz and Omnibadges. Horoquartz was established 1971 in France and active in the ‘Time and attendance’ management business with more than 5,000 clients, with 2 million daily users. It includes 50% of CAC 40 (largest listed company in France) and is recognized as the French market leader. Horoquartz provides most- advanced ‘Time and attendance’ and work- force management solutions, integrated with Amano’s hardware, through twelve direct sales offices across France. Amano Europe is offering the Horoquartz software solutions for their European clients. Clients of Horoquartz manage and animate the ‘User-club’ four times a year. In this way, we can learn a lot from our clients, not only the best practice of the management solu- tions, but also the customers’ new require- ments. This information is a treasure to us. Omnibadges is a service-oriented company, specialized in making and printing custom- ized identification cards. With more than 1 million cards per month and a customer base of more than 8000, they can be con- sidered as the major player in France in small and mid sized segment of the market. Based on the synergy effect, Amano Eu- rope group will continue to deploy its ex- pansion plans in Europe.
Amano USA Holdings, Inc.
Amano USA Holdings, Inc. (AUH) con- tinues with its goal to achieve sustainable
and proitable growth and be the very best in our chosen markets. This goal can only be accomplished through constant innovation in the design and development of our products, and superior service to our customers. AUH most recently broke ground for the ex-
pansion and renovation of its North American Corporate Headquarters. Present were local elected oficials, representatives of the general contracting and architectural firms, as well as all the Amano Roseland employees. This project also demonstrates its commitment to sustainable growth in the marketplace. The transformed building is scheduled to debut in the irst quarter of 2009.
Amano McGann, Inc. -Parking Business Unit Growth in the parking division through acquisition and consolidation
The acquisition of McGann Associates in June 2007 combined strong hardware (Amano) and software (McGann) systems expertise.
It also brought the expansion of a nationwide sales & service network through the consoli- dation of several branches including Time & Parking Solutions of Cincinnati; Time & Park- ing Systems of Atlanta; Time & Parking Solu- tions of St. Louis; and the Amano USA, Inc. branches in Massachusetts, New Jersey and Connecticut (formerly ITS).
Amano McGann, Inc. expanded its full service branch operations through the acquisition of Access Control Technologies (ACT) in Orlando, FL as well as the acquisition of ASSI Security Parking in Irvine, CA to reinforce its market reach in Southern California.
Major secured projects and wins in the areas of Pay Station, Airport System ex- pansion, Frequent Parking Program (FPP), Turnkey Hotel Systems, Valet Systems and Event Parking include: Nashville Interna- tional Airport, City of Lowell, University of Minnesota, Hyatt Regency, Washington Nationals Stadium and Indianapolis Airport. The new generation of Parking Hard- ware & Software
The new look of the Parking Lane equip- ment is scheduled to premiere at the
International Parking Institute Confer- ence (IPI) June, 2008, in Dallas, TX. Amano McGann, Inc. will also introduce iParc Professional software, a full web-browser cli- ent management for the Parking Professionals.
system integration projects with Parking solutions systems. These accomplish- ments involve Walt Disney World in Orlando; The Georgia Building Authority in Atlanta; The Drexel De- velopment Company; Hos-
pital Corporation of America; The State of Maine; Time Warner Media Company. Sales Territory Expansion
Amano security equipment has been pre- sented to our dealers in Central and South America and was well received. We are working on a number of major projects for that region that include large commercial buildings and a sea port in Ecuador. We are expanding our security dealer net- work on the west coast with the strategic intent of growing our dealer base in that part of the United States.
Amano Pioneer Eclipse - Floor Care Business Unit
Launch of PowerStar Concrete and Stone Care Division
A major trend identified in the commer- cial market is the reduction of floor care operating costs. “Big Box” retail stores in particular have elected to install polished concrete in their new facilities. PowerStar Concrete and Stone Care Divi- sion was launched in
the 4th Quarter of 2007 to strategically position APEC as a major entity in this sector. In keeping with “The Systems Approach to Floor Care,” we introduced 2 new grinding and polishing machines, a line of diamond disks, an array of chemical products, and a variety of supplies to allow end-users to achieve maximum results at minimum cost.
Continued Green Initiative
We further enhanced our leadership role in the “Green Movement” in environmentally preferable chemical products. Our EnviroStar Green products, of which there are now 21 including 5 loor coatings, are oficially being recognized as “green”
products by the Environ- mental Protection Agency (EPA).
Go Green Initiative Amano McGann, Inc. is launching the 2008 Park- ing ReLeaf program and is committed to planting 10,000 trees globally
to improve carbon off-set. This initiative as well as established programs from our APEC Business Unit further emphasizes our Corp-wide commitment and responsibility to the eco-systems.
Amano Cincinnati, Inc. - Time Business Unit All New Web-Based Dealer System
Amano Cincin- nati, Inc. proudly introduced the N E W A m a n o Dealer Portal, a web-based system designed to facilitate day-to-day account management activities with Amano at http://partner.amano.com. This system al- lows our dealers to manage orders; review purchasing history, review parts lists and print downloadable manuals and collaterals. Dealers in smaller markets can beneit from our volume discount program and take full advantage of the monthly promotions on the homepage of the Dealer Portal. Amano is rolling out Phase II of the Dealer Portal soon to include ordering of bro- chures and customized mailers directly online; view training schedules and events; product releases and a list of certiied tech- nicians.
Amano Introduces Quality Time Solu- tions at an Affordable Price
Amano Cincinnati, Inc. plans to release the CP-5000 Electronic Time Recorder this summer. The CP-5000 Series is designed as a fully auto-
matic time recorder which eliminates over- printing through the use of mark-sensing technology.
Amano Cincinnati, Inc. - Access Con- trol Business Unit
The purchase of Impro US (Ltd) assets gave Amano an instant customer base of an additional 250 security dealers.
A bright future
Since the acquisition of Impro USA assets, the new Access Control business unit has
Manufacturing upgrade and expansion We completed an upgrade and expansion of the chemical manufacturing operation with the installation of two state-of-the- art illing lines and a robotic palletizer. This installation provides not only increased capacity, improved eficiency and enhanced quality for APEC branded chemical prod- ucts but also the opportunity to further expand chemical sales in the private label arena. In addition, Kaizen methodologies were successfully implemented throughout all other manufacturing operations resulting in signiicant improvements in eficiency and substantial cost reductions.
Time Stamp Solution Corp.
Time Stamp Solution(TSS), a wholly-owned subsidiary of Amano Korea Corporation, was established in January 2008.
TSS's business activities focus on "Digital Timestamping" systems and its services. (not mechanical).
TSS develops software and systems based on products in Amano Corporation Japan, and supplies it combined with other products for
"Digital Timestamping" solutions to the market in Korea.
AMANO Thai International
Co., LTD. (ATI)
We ATI started its business for environmental products in areas covering Thailand and Viet- nam markets from 21st of January this year. On 10th of March, the Opening Ceremony was carried out, starting with tape-cutting by Mr. Komoto, chairman of Amano Cor- poration, Mr. Sakamoto, managing director of Yamagata Corporation and Mr. Sato, president of ATI.
The objective of this business is to s t r e n g t h e n s a l e s structure for large d u s t c o l l e c t i o n systems for those Japanese companies
Yen in millions and U.S.dollars in thousands, except per share amounts - See Note 4 to the Consolidated Financial Statements.
Note: U.S.dollar amounts have been translated at the rate of ¥100 = US $1, the rate prevailing on March 31, 2008. -See Note 4 to the Consolidated Financial Statements.
AMANO Corporation and Subsidiaries
Financial Highlights
For the years ended March 31, 2008 and 2007.
2008 2007 2008
For the years ended March 31:
Net sales ... Net income ... Per share data (Yen and U.S. Dollars):
Net income per share (Basic) ... Cash dividends per common share ... At March 31:
Total assets ... Working capital ... Total net assets ... Sales by product:
Time information systems ... Time management equipment ... Parking systems ... Environmental systems ... Cleaning systems ...
'07 '05 '06
'04 '08
Net Sales Net Income Net Income Per Share
0 10000 20000 30000 40000 50000 60000 70000 80000 90000 100000
0 1000 2000 3000 4000 5000 6000 7000
0 10 20 30 40 50 60 70 80
'07 '05 '06
'04 '08 '04 '05 '06 '07 '08
(Millions of Yen) (Millions of Yen) (Yen)
¥93,351 6,104
¥75.96 34.00
¥116,951 36,321 86,307
¥16,266 6,628 40,062 20,808 9,587
¥85,769 5,961
¥74.29 30.00
¥111,487 47,727 83,621
¥14,674 7,296 33,738 20,171 9,890
Millions of Yen dollars (Note 4) Thousands of U.S.
$933,510 61,040
$0.760 0.340
$1,169,510 363,210 863,070
$162,660 66,280 400,620 208,080 95,870
AMANO Corporation and Subsidiaries
Consolidated Balance Sheets
As at March 31, 2008 and 2007.
ASSETS 2008 2007 2008
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 ... Machinery and equipment ...
Less accumulated depreciation ...
Land ... Construction in progress ... Net property, plant and equipment ...
Intangible assets ...
Investments and other assets:
Investments in unconsolidated subsidiaries and affiliates ... Investments in securities ... Fixed leasehold deposit ... Deferred tax assets ... Other assets ... Less allowance for doubtful accounts ... Total investments and other assets ...
Total ...
¥20,545 1,000
28,749 (150) 28,599 7,825 1,377 1,392 60,738
26,528 19,880 46,408 (31,121) 15,287 6,582 183 22,052
18,718
962 5,947 1,064 2,232 5,705 (467) 15,443
¥116,951
¥33,690 500
24,636 (105) 24,531 8,459 1,254 1,336 69,770
25,372 19,547 44,919 (29,926) 14,993 5,825 734 21,552
6,410
495 5,597 958 1,901 5,227
(423) 13,755
¥111,487
$205,450 10,000
287,490 (1,500) 285,990 78,250 13,770 13,920 607,380
265,280 198,800 464,080 (311,210) 152,870 65,820 1,830 220,520
187,180
9,620 59,470 10,640 22,320 57,050 (4,670) 154,430
$1,169,510
Millions of Yen dollars (Note 4) Thousands of U.S.
The accompanying notes are an integral part of these statements.
LIABILITIES AND NET ASSETS 2008 2007 2008 Current liabilities:
Short-term bank loans ... Trade notes and accounts payable ... Accrued expenses ... Accrued income taxes ... Other current liabilities ... Total current liabilities ...
Long-term liabilities:
Accrued retirement benefits to employees ... Accrued retirement benefits to directors and corporate auditors ... Deferred tax liabilities ... Other ... Total long-term liabilities ...
Net assets:
Shareholders' equity: Common Stock
Authorized- 185,476,000 shares Issued:
March 31, 2008 - 81, 257, 829 shares ... March 31, 2007 - 81, 257, 829 shares ... Capital surplus ... Retained earnings ... Treasury stock at cost, 866,647 shares in 2008 and 971,355 shares in 2007 ...
Valuation and translation adjustments
Net unrealized gains (losses) on other securities .... Foreign currency translation adjustments ...
Minority interests in consolidated subsidiaries ....
Total net assets ...
Total ...
¥191 12,040 4,974 1,873 5,339 24,417
4,372 715 726 414 6,227
18,240
–
19,567 49,225
(711) 86,321
66 (956) (890)
876
86,307
¥116,951
$1,910 120,400 49,740 18,730 53,390 244,170
43,720 7,150 7,260 4,140 62,270
182,400
195,670 492,250
(7,110) 863,210
660 (9,560) (8,900)
8,760
863,070
$1,169,510
Millions of Yen dollars (Note 4) Thousands of U.S.
The accompanying notes are an integral part of these statements.
¥434 11,486 4,391 2,271 3,461 22,043
4,270 739 61 753 5,823
– 18,240
19,521 45,860
(794) 82,827
514 (356) 158
636
83,621
¥111,487
AMANO Corporation and Subsidiaries
Consolidated Statements of In come
For the years ended March 31, 2008 and 2007.
2008 2007 2008
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 ... Amortization of goodwill ... Gain on sale of plant and land ... Loss on disposal of property and equipment ... Gain on sale of investments in securities ... Loss on sale of investments in consolidated subsidiaries ... Loss on sale of investments in securities ... Other, net ... Income before income taxes ... Income taxes :
Current Deferred
Income before minority interests
Minority interests in net income of consolidated subsidiaries Net income
Net income per share, basic Cash dividends per common share
¥93,351 53,348 40,003 29,992 10,011
332 (58) 47
– 15 (175) – (93) (30)
79 10,128
4,007 (151) 6,272 (168)
¥6,104
¥75.96 34.00
¥85,769 47,920 37,849 27,705 10,144
218 (61) – (320)
62 (46) 21 (24) – 233 10,227
4,049 54 6,124 (163)
¥5,961
¥74.29 30.00
Millions of Yen dollars (Note 4) Thousands of U.S.
The accompanying notes are an integral part of these statements.
U.S. dollars (Note 4) Yen
$933,510 533,480 400,030 299,920 100,110
3,320 (580)
470 – 150 (1,750)
– (930) (300)
790 101,280
40,070 (1,510) 62,720 (1,680) $61,040
$0.760 0.340
AMANO Corporation and Subsidiaries
Consolidated Statements of Net Assets
For the year ended March 31, 2008.
Millions of yen Shareholders’ equity
Common stock Capital surplus Retained earnings Treasury stock Total shareholders’ equity
Balance at March 3l, 2007 ¥18,240 ¥19,521 ¥45,860 (¥794) ¥82,827
Changes during the year
Dividends from surplus (2,731) (2,731)
Decrease due to application of equity method to new affiliates (8) (8)
Net income 6,104 6,104
Purchase of treasury stock (6) (6)
Disposal of treasury stock 46 89 135
Net changes in items other than shareholders’ equity
Total changes during the year – 46 3,365 83 3,494
Balance at March 3l, 2008 ¥18,240 ¥19,567 ¥49,225 (¥711) ¥86,321
Valuation and translation adjustments
Minority interests Total net assets Net unrealized
gains(losses) on other securities
Foreign currency translation adjustments
Total valuation and translation adjustments
Balance at March 3l, 2007 ¥514 (¥356) ¥158 ¥636 ¥83,621
Changes during the year
Dividends from surplus (2,731)
Decrease due to application of equity method to new affiliates (8)
Net income 6,104
Purchase of treasury stock (6)
Disposal of treasury stock 135
Net changes in items other than shareholders’ equity (448) (600) (1,048) 240 (808)
Total changes during the year (448) (600) (1,048) 240 2,686
Balance at March 3l, 2008 ¥66 (¥956) (¥890) ¥876 ¥86,307
Valuation and translation adjustments
Minority interests Total net assets Net unrealized
gains(losses) on other securities
Foreign currency translation adjustments
Total valuation and translation adjustments
Balance at March 3l, 2007 $5,140 ($3,560) $1,580 $6,360 $836,210
Changes during the year
Dividends from surplus (27,310)
Decrease due to application of equity method to new affiliates (80)
Net income 61,040
Purchase of treasury stock (60)
Disposal of treasury stock 1,350
Net changes in items other than shareholders’ equity (4,480) (6,000) (10,480) 2,400 (8,080)
Total changes during the year (4,480) (6,000) (10,480) 2,400 26,860
Balance at March 3l, 2008 $660 ($9,560) ($8,900) $8,760 $863,070
Thousands of U.S. dollars (Note 4) Shareholders’ equity
Common stock Capital surplus Retained earnings Treasury stock Total shareholders’ equity
Balance at March 3l, 2007 $182,400 $195,210 $458,600 ($7,940) $828,270
Changes during the year
Dividends from surplus (27,310) (27,310)
Decrease due to application of equity method to new affiliates (80) (80)
Net income 61,040 61,040
Purchase of treasury stock (60) (60)
Disposal of treasury stock 460 890 1,350
Net changes in items other than shareholders’ equity
Total changes during the year − 460 33,650 830 34,940
Balance at March 3l, 2008 $182,400 $195,670 $492,250 ($7,110) $863,210
