April 2011 March 2012 Financial Report | IRライブラリー | 株主・投資家の皆様へ | アマノ

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FINANCIAL REPORT

April 2011 March 2012

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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 in sales, production, and development.

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: 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 the themes 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 structure and 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 and untapped markets), developing multi-disciplinary business operations on a location-by- location 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.

Management Policy

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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 are designed 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 our operations by adding new products alongside the wide array of time information management terminals and the blue-chip customer base that Accu-Time Systems enjoys. By enhancing 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 end of the market in France and at increasing our visibility and expanding further into other markets across Europe. In the parking system business, we will step up sales of low- priced system products, focusing on the UK and the three Benelux countries, in order to 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 of Asia by deepening ties between our Group companies across Asia and our head office in 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 the development 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.

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Izumi NAKAJIMA President

Representative Director

3. Basic Policy on Distribution of Profits and Payment of Dividends for

This 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 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, 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 end of the previous year. As a result, the annual per-share dividend will be ¥26 (including the

¥13 per share paid as the interim dividend). This corresponds to a dividend payout ratio of 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 Dis- tribution 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.

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Analysis of Business Results

Business Results in the Year Ended March 31, 2012

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

Amid this business environment, the Amano Group worked, in accordance with the new global growth strategy outlined in its new medium- term 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 thor- oughly uncovering customer needs, and strove to reduce sales costs and selling, general and administrative expenses.

As a result of the above, during the fiscal year under review, the Com- pany recorded sales of ¥88,147 million, up by 5.8% year-on-year. Op- erating proit increased by 35.0% to

¥5,917 million, ordinary proit went up by 31.5% to ¥6,322 million, and net income decreased by 21.2% to

¥2,415 million.

The following is a breakdown of sales by business division.

Sales by business division

(Unit: Millions of yen)

FY2010 FY2011

Change year endedMarch 31, 2011 year endedMarch 31, 2012

Amount Ratio (%) Amount Ratio (%) Amount % Time Information System Business

Information Systems 18,890 22.7 19,569 22.2 679 3.6

Time Management Equipment 4,407 5.3 4,245 4.8 (162) (3.7)

Parking Systems 38,493 46.2 40,794 46.3 2,301 6.0

Subtotal 61,790 74.2 64,608 73.3 2,818 4.6

Environment System Business

Environmental Systems 14,144 17.0 16,374 18.6 2,230 15.8

Clean Systems 7,369 8.8 7,165 8.1 (204) (2.8)

Subtotal 21,513 25.8 23,539 26.7 2,026 9.4

Total 83,303 100.0 88,147 100.0 4,844 5.8

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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 and cloud computing have grown due to the influence of the Great East Japan Earthquake, as part of companies’ preparations for their Business Contingency Plans (BCP).

In response to these changes in the market environment, the Company concentrated on uncovering demand by launching hosting services, proactively developing proposals that offer comprehensive solutions to issues concerning both the ownership of systems and the use of systems, and strengthening our business support system for systems engineers.

During the iscal year under review, hardware sales in Japan decreased by ¥258 million (4.9%) year-on-year, software sales decreased by ¥3 million (0.1%), and sales generated by maintenance contracts and supplies services increased by ¥147 million (4.7%). The decrease in hardware

sales was attributed to a decrease in 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 sales of Accu-Time Systems in Nor th America and the sales of Horosmart S.A. in Europe remained irm. As a net result of the above, overall sales in this business division totaled

¥19,569 million, representing an increase of 3.6% year-on-year.

Time management equipment

In Japan, this business division continued to struggle under difficult conditions. There was a decrease in new store openings and re- placement demand was stagnant, despite the demand for recon- struction after the Great East Ja- pan Earthquake.

In this market environment, the Company concentrated on uncovering new demand by building new sales channels and strengthening sales promotion activities, in order to enhance and expand its customer base.

In Japan, overall sales for the fiscal year under review decreased by ¥52 million (1.5%) year-on- year due to a decrease in exports to Asia, although domestic sales

increased. Sales for all of Nor th America, 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 business division generated sales totaling

¥4,245 million, down by 3.7% year- on-year.

Parking Systems

In the midst of the diversification of parking lot utilization systems, as typified by the broader installation of charging stations for electric vehicles and the introduction of car- sharing services in Japan, this division has been working to reduce the costs of parking lot management and to promote environmentally friendly initiatives, such as employing LED lighting equipment in parking lots to reduce energy consumption and installing solar panels to achieve greater energy self-suficiency. In response to these changes in the market environment, the Company has, in cooperation with its Group companies in Japan, stepped up its efforts to provide its customers with solutions, and has focused its efforts on uncovering demand for the re- placement 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 iscal year under review increased by ¥2,095 million (14.8%) year-on-year, thanks to an

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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 Ama- no Management Service Corpora- tion in its commissioned parking lot management business increased by 32,300 (16.3%) from the end of the previous iscal year.

Overall overseas sales decreased by ¥42 million (0.4%). Sales for North America declined in terms of Japanese yen due to luctuations 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 to show strong sales.

As a net result of the above, the parking systems business division provided sales totaling ¥40,794 million, an increase of 6.0% year-on- year.

Environment System Business

• Environmental Systems:

Standard dust collectors, large dust collection systems, pneumatic powder conveyance systems,

high-temperature hazardous-gas removal systems, deodorization systems, and electrolytic water generators

• Clean Systems:

Cleaning equipment, dr y-care cleaning 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-afiliated companies operating in Asia, including China, has been increasing, and it has been apparent in the business environment that demand has shifted from Japan to the rest of the world.

In this market environment, the Company has focused on expanding demand by proactively shifting its managerial resources. The Compa- ny’s efforts included increasing the number of local staff, establishing closer cooperation with overseas Group companies, and expanding production in China in order to bolster 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 services by ¥281 million (8.6%), as a result of our capturing the demand for environmental systems of the in-

ternational operations of Japanese companies that have expanded into overseas markets.

Overall overseas sales increased by

¥429 million (30.2%) year-on-year due to increased orders for both standard 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 this business division totaled ¥16,374 million, up by 15.8% year-on-year.

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, the Company focused on uncovering new demand by providing proposals for the achievement of total cost reductions using a new loor construction system and maintenance services, enhancing demonstrations of actual machines, and launching new models of cleaning machines and polishers in order to improve both work eficiency and quality.

MJ-5

GT-4700GP

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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 iscal year-end. Current assets increased by ¥3,476 million year-on-year. This was chiefly due to a ¥2,609 million increase in notes and accounts receiv- able-trade and a ¥792 million increase in cash and bank deposits. Fixed assets decreased by ¥2,931 million year-on- year. This was attributable primarily to a ¥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

¥914 million year-on-year. Current liabilities decreased by ¥564 million year-on-year. This was chiely due to a decrease of ¥1,546 million in short- term bank loans, despite an increase of ¥355 million in trade notes and accounts payable and an increase of

¥324 million in lease obligations. Fixed liabilities increased by ¥1,478 million year-on-year. The principal factors be- hind this were an increase of ¥1,280 million in long-term bank loans and an increase of ¥803 million in lease obligations, despite a decrease of ¥470 million in accrued retirement beneits for employees.

• Net Assets

Total net assets as of March 31, 2012 amounted to ¥72,192 million, down by ¥369 million from the previous iscal year-end. This was primarily due to a decrease of ¥818 million in total accumulated other comprehensive income resulting from a decrease in for-

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

(ii) Cash Flows

Consolidated cash and cash equiva- lents increased by ¥1,308 million from the previous iscal year-end, to a total of ¥25,922 million on March 31, 2012. The status of each type of cash low at the year-end and the underlying factors are as follows.

(1) Cash low from operating activities 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 and amortization amounting to ¥4,030 million, despite income taxes payments amounting to ¥3,082 million. Domestic sales of cleaning equip-

ment during the fiscal year under review decreased by ¥104 million (5.0%) year-on-year, and revenue from maintenance contracts and supplies increased by ¥98 million (3.4%).

Overall overseas sales decreased by ¥84 million (5.2%) year-on-year. Sales for Nor th America grew in terms of local currencies but decreased in terms of Japanese yen due to fluctuations in exchange rates.

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

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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.

Reference: Trend of cash low 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

Outlook for Fiscal Year

Ending March 31, 2013

During the iscal year ending March 31, 2013, we forecast that the Japanese economy will continue to recover at a modest pace, as the world economy is expected to show stable growth led by China and other emerging countries and demand for post-earthquake recon- struction is expected to gradually surface, despite concerns regarding the slowdown in the growth of (2) Cash low from investing activities Net cash used in investing activities totaled (¥1,535) million. This was largely 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 ixed assets, and ¥842 million for the acquisition of

Western 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 the business ields in which we excel; 3) ceaseless restructuring; and 4) management based on cash low. In line with these four fundamental strategies, we will pursue our consolidated growth strategy on a global scale to ensure sustainable growth and the

continual improvement of profitability with a view to maximizing the corporate value of Amano Corpo- ration.

The following business results are projected for the iscal year ending March 31, 2013: net sales of ¥93,500 million, operating profit of ¥7,000 million, ordinary 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. intangible ixed assets. These outlows

more than offset proceeds of ¥4,673 million from the withdrawal of time deposits and ¥2,241 million from the redemption of securities.

(3) Cash low from inancing activities Net cash used in financing activities totaled (¥3,051) million. This was

chiely 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 of inance lease obligations, despite proceeds of ¥1,550 million from long- term debt.

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Operating and Other Risk Factors

Matters relating to the qualitative information contained in these summary financial statements and relating to the consolidated inancial statements that could be envisaged as having a possible material impact on investors are described below. Every effort are made to identify factors that may now or in the future pose a risk to the undertaking of business by the Amano Group, and these risk factors are then elimi- nated or otherwise managed in the course of business.

Forward-looking statements are current as of the date of the release of these inancial results (May 9, 2012).

(i) Impact on earnings due to changes 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 of business in Japan, North 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 system business accounted for 26.7%. Be- fore the deduction of unallocated expenses, the time information sys-

tem business contributed 74.6% to operating proit, while the environment system business contributed 25.4%. In terms of weighted average sales over the last five years, the time information system business accounted for 71.9% of total sales and 72.7% of operating proit. One future risk factor is that if market expansion is forecast for a business activity within the time information system business segment (which accounts for a large proportion of the Group’s business) for such reasons as a signiicant change in the demand structure or the creation of a new market, entities in other industries or other power- ful competitors may be tempted to enter 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 business activities on a global scale and has production and sales bases overseas. In view of this, the Group’s business results may be impacted by luctuations in exchange rates when the proceeds for overseas transactions are converted into yen.

(iii) Information security

In the course of providing system solutions and application ser vice provider services, the Amano Group handles 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 conidential information, and uses software for the pro- tection of confidential information with the aim of preventing network access to confidential information and the physical removal of data and information. To that end, it has also established 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 described above being disclosed externally could have a material impact on the Group’s business performance due to factors such as loss of conidence.

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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 labor authorities to more strictly monitor un- paid over time and long working hours (overworking) in order to eradicate these practices and an increasing need to deal with risks surrounding employment (such as industrial court cases resulting from de- teriorating employment conditions), there is strong 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 eficiency, cutting costs, etc. In addition, we aim to strengthen measures for compliance toward appropriately managing working hours. However, market conditions remain tough, reflecting prolonged reductions in information-related investments, intensifying competition in the market, and other factors. Meanwhile, the business environment in which this segment operates has seen a signiicant shift from companies owning systems to simply utilizing them, with an increasingly prominent movement in the industry 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 re- inforcing our marketing structures with collaboration between sales staff and systems engineers. In addition, we will actively make proposals for comprehensive solutions, including hosting services, by strengthening alliances with Group companies in Japan in order to respond to the changes of the times.

To enhance the proitability 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 pack- ages to small and medium-scale business es- tablishments, so as to boost earnings capacity.

Overseas, we will continue to scale up our operations by adding new products alongside the wide array of time information management terminals and the blue-chip customer base that Accu-Time Systems enjoys. In addition, we will work on establishing a 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 our organizational structures toward globaliza- tion.

•Parking systems business

The parking system business is seeing the business environment in which it operates change signiicantly. For example, the broader installation of charging stations for electric vehicles, programs to reduce greenhouse gas emissions, and the introduction of car sharing services designed to ease trafic congestion have led to a diversification of parking lot operation styles. Meanwhile, initiatives have been developed to enhance the quality of customer service offerings, to reduce elec- tricity consumption through the use of LED lighting, and to operate more environment- friendly parking spaces through measures such as the installation of solar panels. In this environment, we will focus on making proposals from the customer’s perspective with an emphasis on areas such as higher profitability and efficiency in parking space management. We will steadily meet the needs of existing customers by offering high value-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 with Group companies.

We will seek to revitalize and expand the market for bicycle parking, which has been highlighted as a result of the problem of abandoned bicycles, by proactively making proposals on ecology-oriented initiatives, including rent-a-cycles and community bicycle systems. We also aim to expand the new market that has emerged for exclusive gate systems for controlling access to sites such as factories, with an emphasis on safety and security and on making proposals regarding labor-savings and rationalization.

Overseas, we aim to expand our business and establish ourselves as the top manu-

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, in order to build stronger operational foundations. In Asia, we will further expand our business, focusing on Korea.

2) Environment systems business

•Environment systems

In the environment system business, capital investment by Japanese-afiliated 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 to markets 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 of closer cooperation with overseas Group companies, and the expansion of production in China. In addition, we will strengthen our capability to develop new products with less environmental impact, launch new products to match the reduction in size and the diver- siication of machine tools, and enhance our lineup of dust-explosion-proof technologies to raise safety standards. We also aim to spur latent demand by expanding our maintenance business and to further strengthen proit control for each site in order to boost proitability.

In overseas markets, we will expand our business in Asia by building stronger ties with overseas Group companies in China, Thai- land, 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 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 challenges.

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Time Information Systems Enhanced Cloud Solutions! Various services are available to achieve an optimal balance between Business Continuity Plans (BCPs) and cost reduction.

The demand for cloud services is on the rise. It is a solution in which the systems can be configured quickly and it provides a high level of security, operational eficiency at lower administration costs. Amano’s cloud solutions can meet the various requirements de- pending 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, the work management service “TimePro- CX”, and the time stamp service, “e- timing” 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 trustworthiness and reliability, Amano’s cloud services has been awarded the “ASP&SaaS Cloud Award” for two consecutive years. This award is sponsored by the ASP&SaaS Cloud Consortium, a NPO backed by the Ministry of Internal Affairs and Com- munications and the Ministry of Econo- my, 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 owner is provided with various information including the current utilization status. The service menu includes (i) Manage- ment 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) Remote control service, enables the check of error messages and alarms along with the control of laps and gates.

An Internet connection and a browser software on your existing PC is all that is needed to check parking information anytime anywhere. This new service is drawing attention from the people in the parking business and thus continued growth is anticipated.

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 high degree of sanitation to prevent cross- contamination of the end product. In addition, during the manufacturing pro- cess of anti-cancer drugs, which utilize highly active pharmaceutical agents, the adoption of containment technology is essential to protect the workers from exposure to such agents.

Amano’s containment technology incorporates the in & out method^*1 when changing bag filters, the use of vinyl-lined tubular packs^*2 during powder discharge with the additional use of wet ilters^*3 to achieve a higher level of containment. The product is highly rat- ed by the leading

pharmaceutical companies who have adopted it, and we anticipate further growth in demand as it becomes an industry standard.

*1 A method of changing filters which prevents direct contact with hazardous material.

*2 Special vinyl-lined tubular packs are used to achieve airtight containment during powder discharge.

*3 The use of wet ilters is an anti-scattering tech- nique that increases safety during ilter change.

Amano USA Holdings, Inc.

AMANO CINCINNATI, INC. – TIME BUSINESS The Time Division and the factory have worked very closely to launch Amano’s newest side printers with enhanced features: PIX-75 and TCX-85. Since the launch of the PIX and TCX Series in Octo- ber 2011, Amano has shipped 13,000 units. The PIX-75 and TCX-85 are available on store shelves at two major retail chains and also available through their online stores. Time Division has also redesigned their website and developed a “Time Knowledge Base” to improve customer service. “Time Knowledge Base” provides featured articles, product manuals, technical support, Q&A and FAQ’s, which is one click away and available 24/7. The knowledgebase has also helped reduce the demand on our technical support team. Currently, the knowledgebase has over 8000 articles viewed every week with ever-increasing demand from internet users.

ACCU-TIME SYSTEMS, INC.

“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 high proile installations around the globe. Our products are now being used by a large chain of pubs in The UK, by a cinema group in Scandinavia, and a series of senior care facilities in Canada. The

application in Canada uses both ATS timeclocks and our integration software called EngineXML.

Planned resources in 2011 were spent on developing new biometric technolo-

gies, 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 AccuT- ouch biometric technology with great success. Our reseller partners quickly adopted this technology. AccuTouch brings a new level of accuracy and ease to finger scanning. Our reseller partners can now deploy a biometric technology in applications that would not previously support one. Dirty, wet, dry, or damaged ingers can be more easily 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

irst series of time & attendance terminals were known as the Century Series. A few years later ATS introduced the Cyber Se- ries. Then, in 2007, the Global Series was brought to market. We are very excited to launch the new Universal Series in 2012.”

Amano McGann, Inc. – Parking General

The 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 in the euro area. These recent improvements in the US economy are fragile and a strong rebound from the steep fall of the Great Recession is needed.

Even with some of the worst economic conditions faced in decades, Amano Mc- Gann was able to post strong revenues and proits for the 2012 Financial Year. We will build on that success by ine-tuning our operations, sales, marketing, and support activities this inancial year.

Success through Change

Amano McGann kicked off 2012 with a Leadership Summit in Tampa, Florida. Lead- ers from the management, sales, and marketing teams joined forces to proactively address the changes in the economy, the industry, and to shape the future of Amano McGann.

The meeting provided an opportunity to realign our company vision, goals, and strategies with the needs of the industry to allow 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 orga- nize 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 to build 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 branding for consistency and improved awareness while providing users with a more effective information medium. The site delivers a market driven approach to better address the needs of our customers, bringing every-

day concerns to light for each market and identifying Amano McGann solutions that address those concerns and maximizes eficiency and proitability.

The site also offers user-friendly navigation and extensive product information. Bro- chures, cut sheets, product images, features, and solutions are all at your ingertips. As we move into the next phase of development you can expect to see the addition of a dealer portal, interactive applications, and integration with Amano Security.

AMI Joins the Social Network

Amano McGann is now an active member of the Facebook community. The new Facebook page provides AMI with its irst presence in the ever-so-popular world of social networking that continues to grow at an astonishing rate. As of December 2011, Facebook reached 845 million users in total with 37 million pages dedicated to businesses, organizations, brands, charities, public igures 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 Off- Street Parking

AMI has joined forces with Parkmobile, the leading provider of mobile payment solutions, to provide the irst common on/off-street plat- form for pay by phone apps. As part of the integration, Parkmobile will include a QR code on all of their smart- phone apps which can be used as a credential to Flex-

Scan in/out of parking facilities. The experi- ence 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 chan- nel partners the ability to leverage the large installation base of Parkmobile and tap into this signiicant 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

WebLaunch ScreenShots

Parkmobile iPhone

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a dedicated team of pro- fessionals, 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 in Retail parking automa-

tion and that trend continued with installation at the prestigious Westside Pavilion in West LA. AMI installed the latest technology to ensure mall ownership concerns were addressed, which included eliminating

“poacher” parking, providing a better ex- perience to mall patrons, and reducing the facility’s carbon footprint.

The solution included technologically ad- vanced 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 the circulation in our garage faster and more eficient. Customers are deinitely happier,” stated Robin Dean, CSM and AVP of Asset Management 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 employed regional managers. These changes created improved relationships with both current and new customers delivering broad based growth to regional dealers, distributors and business 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 irst annual North American Customer Council meeting held in the fall of 2011. The Council is comprised of high level executives from some of the largest dealer and end user companies in the industry and will serve as a direct line of communication for future strategic business development.

Another part of the reengineering included outsourcing the sales administration of APEC loor 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 sanitation industry. This effort allows the APEC sales force to concentrate on the company’s core business while improving the penetra- tion of these high performance machines into concrete construction and refinishing markets unavailable to APEC in prior years. from printed and elec-

tronic media. FlexScan integration offers new and future revenue opportunities with the ability to drive applications such as Parkmobile pay-by-phone, online validations, reserva- tion parking, promotional passes, pre-purchased e v e n t p a r k i n g , a n d visitor passes with tenant

chargeback 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 and features a power fail automatic option with a maintenance free torque motor. In the event that a facility los- es power, the AMG- 1800 gate arm will automatically raise and remain in the open position until power is restored. This feature provides improved safety and convenience to both patrons and operators. The release of the direct drive gate came at a key time in the industry with several major markets mandating gates raise in the event of a power failure.

Universal Reader Scheduled for release in July, the Universal Reader is an entry / exit solution that will help facilitate a paradigm shift in the parking industry. The move away from traditional ticket based systems is gaining popularity. Credit Card in/ out is essential today. Pay- by-Phone is quickly gain-

ing 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 Command Center integration. When combined with LPR, the Universal Reader can also be used as an LPR in/out device capable of to print- ing 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 in- tegrity, operational excellence, and a strong customer focus. These principals, along with

New Products

In the summer of 2011, Amano Environ- mental 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. Based on existing products manufactured by ACJ, AEUS now produces two machines that are marketed to lathe and CNC manufac- turers across North and South America. Additionally, AEUS is providing installation and support services to the Americas for the full line of ACJ mist and dust collection products. This is a major strategic growth opportunity for the future.

In its core business of loor care and janitorial equipment and chemical systems, APEC set a goal in 2010 that required one-third of its turnover come from new products. The company has taken great strides in achieving this goal with almost 28% of 2011 sales coming from products launched in the prior 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 loors), the 400 Series machine (a low cost, entry level ultra- high speed propane powered floor bur- nisher), the AquapHyll™ chemical dosing and dispensing system and the 300 Series machines (an entirely new line of battery powered loor scrubbers).

Success Stories

In addition to US sales growth, the international sales of APEC machines and chemicals continued its long successful growth trend. With new customers in many developing countries across the globe and established distributors in many European, Asian, and Pacific markets, APEC international sales now represent half of the company’s total turnover.

In the past year, our efforts have led to signiicant market share increases with some of the largest retailers in the US, Canadian, and Australian markets. These new opportunities continue to support current growth and future opportunities for both machine and chemical sales. Moreover, they help

AMG Entry FlexScan

Westside Pavilion

AMG-1850 Gate

Universal Reader

AquapHyll chemical dispensing

PE400BU PE300AS