FINANCIAL REPORT
April 2010 March 2011
1. Basic Management Policy
Throughout its history, Amano has adhered to a basic policy of putting the customer fi rst. 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 toward maximizing corporate val- ue 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 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 fi elds, and enhancement of core business 2) Being a niche leader in the business fi elds in which we excel
3) Ceaseless restructuring
4) Management based on cash fl ow
Based on these four fundamental strategies, Amano inaugurated a new medium-term business plan.
An outline of the plan is set out below.
[1] Basic Policies
Under the new medium-term business plan, the Group seeks to be 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 businesses domains. We are pursuing a new global growth strategy designed to achieve the maximization of corporate value.
Priority issues under the new plan are listed below.
Management Policy
1. North American and European markets
North America: In the parking system business, we will merge Amano McGann’s park- ing management software with Amano Group’s software and hardware, introduce new parking systems into the market, and strengthen direct sales structures to work closely with customers when proposing solutions. These efforts are designed to build upon our business foundations that are second to none in North America. In our time informa- tion system business, we will continue to scale up our operations by adding new prod- ucts alongside a wide array of time information management terminals and a blue-chip customer base that Accu-Time Systems enjoys. By commencing the local production and distribution of mist collectors through Amano Pioneer Eclipse, we will take a new step toward fortifying and expanding our operations in the environment system busi- ness.
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 number one position 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 capabilities to offer products and render services to Japanese companies operating in Asia outside Japan by deepening ties between our group companies across Asia and our head offi ce 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 develop- ment of business operations in China, Singapore, and other Asian countries.
Latin America: In anticipation of the local market’s future growth potential, we will ag- gressively allocate a higher proportion of our managerial resources there, including those toward the commencement of local production, in order to explore market fron- tiers in each of the information system, parking system, and environment system busi- nesses.
3. Japanese market
Japan: We will reinforce ties among group companies and develop high-quality com- prehensive service offerings (combining products and services) across all business fi elds to expand our business domain, create new markets, and enhance our cost competi- tiveness. These efforts should align our entire group to work cohesively towards maxi- mizing its corporate value.
[2] Numerical Targets
Under the new business plan, we aim to achieve ¥100 billion or more in net sales and
¥10 billion or more in operating profi t in the fi nal year of the plan, which ends March 31, 2014.Numerical targets.
Izumi NAKAJIMA President
Representative Director
3. Basic Policy on Distribution of Profi ts, and Dividend for This and Next Term
Amano places great importance on its policy for dividends to shareholders. Fundamental to this is its policy for the return of profi t to shareholders, based on maintaining a stable ordinary dividend of ¥26 annually (¥13 interim and ¥13 year-end), together with appro- priate results-based distributions and fl exible 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 65.0% and a 2.7% ratio of dividends to net assets on a consolidated basis.
With regard to the dividend for the next fi scal year, in line with our Basic Policy on Dis- tribution of Profi ts and in view of our Outlook for the Fiscal Ending March 31, 2012, we will aim to pay a dividend for the year of ¥26 (interim dividend of ¥13, and year-end dividend of ¥13).
Retained earnings will be earmarked for fund effective investment aimed at the fun- damental enhancement of the Company’s capacity to conduct its business operations. This will include the expansion and strengthening of existing business fi elds, strategic investment in growth fi elds, and spending on research and development, as well as the rationalization of production plant and equipment for the purpose of reducing costs and further improving product quality.
Analysis of Business Results
Business Results in the Year Ended March 31, 2011
During the fi scal year ended March 31, 2011, the Japanese economy saw industrial production and cor- porate earnings rebound and the unemployment rate improve slightly, as expor ts increased suppor ted by economic growth in Asian and other countries. These and other in- dicators showed that the economy overcame the business doldrums that prevailed in the latter half of last year and was beginning to recover gradually. Yet, in the aftermath of the
Great East Japan Ear thquake, cur- rent domestic economic activity as a whole now seems to be signifi cantly depressed.
Amid this business environment, the Amano Group worked on global market and product development as well as enhancement of its capac- ity to provide holistic solutions, in accordance with the consolidated growth strategy in its new medium- term business plan, formulated in April 2008. The entire organization also concentrated on thoroughly un- covering customer needs and strove to reduce cost of sales and selling, general and administrative expenses.
As a result of the above, during the year the Company recorded sales of
¥83,303 million, up by 6.0% year-on- year. Operating profit increased by 127.5% to ¥4,383 million, ordinary profi t went up by 97.4% to ¥4,810 million, and net income increased by 203.2% to ¥3,065 million.
The following is an overview of sales by business division.
Sales by business division
(Unit: Millions of yen)FY2009 FY2010
Change year endedMarch 31, 2010 year endedMarch 31, 2011
Amount Ratio (%) Amount Ratio (%) Amount % Time Information System Business
Information Systems 17,440 22.2 18,890 22.7 1,449 8.3
Time Management Equipment 4,316 5.5 4,407 5.3 91 2.1
Parking Systems 37,786 48.1 38,493 46.2 706 1.9
Subtotal 59,542 75.8 61,790 74.2 2,247 3.8
Environment System Business
Environmental Systems 11,521 14.6 14,144 17.0 2,623 22.8
Clean Systems 7,523 9.6 7,369 8.8 (154) (2.0)
Subtotal 19,044 24.2 21,513 25.8 2,469 13.0
Total 78,586 100.0 83,303 100.0 4,716 6.0
Time Information System Business
• Information Systems:
Time & attendance (T&A), payroll, human-resource management, access control, and cafeteria sys- tems
• Time Management Equipment: Time recorders, and time stamps
• Parking Systems:
Parking and bicycle-parking space management systems, and parking management services
Information Systems
This business division continued to struggle under diffi cult conditions in Japan including a prolonged reduc- tion in information-related invest- ments and intensifying competition in the market, though there were also signs of recovery in capital in- vestments. On the other hand, fast growing markets for cloud com- puting services reflect the growing needs of companies wishing to uti- lize systems as a service without the burden of ownership.
In this mar ket environment, the Company continued to provide corporate customers with effective solutions for compliance and cost reduction, including work schedule optimization and total personnel expense control, to accommodate initiatives to improve their work environments. The Company also concentrated on uncovering poten- tial demand by intensifying efforts to make new proposals for cloud com- puting services.
During the year, in Japan hardware sales increased by ¥344 million (6.9%) year-on-year, software sales decreased by ¥259 million (7.2%),
and sales generated by maintenance contr acts and supplies ser vices increased by ¥170 million (5.7%). Decreased software sales refl ected a setback in demand stemming from compliance with the Revised Labor Standards Act, which came into ef- fect in April last year. By product area, T&A system sales were up by
¥527 million (6.3%), while access control system sales increased by
¥71 million (7.0%).
Overall overseas sales increased by ¥1,077 million (20.1%) year-on- year. Sales for North America grew as Accu-Time Systems became a newly consolidated subsidiar y of Amano Corporation this fi scal year. Sales for Europe continued to be strong, as the sales of Horosmart S.A. increased on a local currency basis. However, sales revenues in terms of Japanese yen showed a decrease due to fluctuations in exchange rates. Sales for Asia decreased slight- ly.
As a net result of the above, overall sales in this business division totaled
¥18,889 million, representing a in- crease of 8.3% from the previous year.
Time Management Equipment
In Japan, this business division contin- ued to struggle under diffi cult condi- tions, as the tight employment situa- tion and uncertain future economic prospects kept a lid on demand. In this mar ket environment, the Company concentrated on expand- ing new markets and attracting a growing base of new customers by enhancing the functionality of PC- interfaced time recorders and step- ping up sales promotions.
In Japan, sales for the year increased by ¥250 million (7.9%) from a year earlier, as continued strong sales of IC card-type PC-interface time recorders contributed to growth in both revenue and unit sales.
Overall overseas sales decreased by ¥69 million (4.6%) year-on-year. Sales for Nor th America and Eu- rope both fell while those for Asia rose.
As a result of the above, the time management equipment business division generated sales totaling
¥4,406 million, up by 2.1% from the previous year.
Parking Systems
This business division is seeing its operating environment in Japan change significantly. The broader installation of charging stations for electric vehicles and the introduc- tion of car shar ing ser vices, for example, have diversified parking lot operation styles. Initiatives have developed to enhance the quality of ser vice offerings, to conser ve electricity through the use of LED lighting fixtures, and to operate environment-friendly parking spaces through measures such as the instal- lation of solar panels.
In this mar ket environment, the Company stepped up its efforts to provide customers with solutions aimed at increasing the profi tability and efficiency, and reducing the la-
TimeP@CK-iC
bor intensiveness, of parking lot op- erations from a customer perspec- tive, as well as with holistic solutions for the operation and management of parking lot services. These efforts were focused on uncovering new demand for replacement projects and on growing new markets includ- ing for bicycle parking systems and exclusive gate systems.
In Japan, sales of car and bicycle parking system devices during the year increased by ¥1,506 million yen (11.9%) from a year earlier, due to an increased number of small and medium-sized system renewal proj- ects. Revenues from maintenance contracts and supplies services in- creased by ¥93 million (1.1%). The number of parking spaces man- aged by Group subsidiar y Amano Management Service Corporation in its commissioned par king lot management business increased by 13,600 (7.4%) from the end of the previous fi scal year.
Overall overseas sales decreased by
¥1,182 million (10.6%) year-on-year. Sales for Nor th America declined substantially, suffering from stagnat- ing demand as the economic climate deteriorated. Those for Europe grew due to greater efforts in selling low- priced parking systems, while Asian operations saw sales grow due to the continued strength of the Ko- rean market.
As a net result of the above, the Parking Systems business division provided sales totaling ¥38,493 mil- lion, an increase of 1.9% 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, and electrolytic water generators
• Clean Systems:
Cleaning equipment, dr y-care cleaning systems, and cleaning management services
Environmental Systems
This division benefited from con- tinued recover y in the business environment in Japan. Although manufacturers accelerated their shift to overseas countries, driven by re- covery in capital investment and by strong orders for machine tools for emerging markets, particularly China and other Asian countries, demand overseas, par ticularly for standard dust collectors, improved.
In this mar ket environment, the Company shifted its managerial re- sources to markets where demand is growing, concentrating on the Asian market. The Company’s efforts included the bolstering of systems to sell products and ser vices to businesses operating overseas, the establishment of closer cooperation with over seas group companies, and the expansion of production in China. These effor ts were focused on stimulating further growth in de- mand.
During the year, in Japan sales of
standard equipment and large-scale systems increased by ¥1,359 million (37.9%) and ¥140 million (3.5%) year-on-year, respectively, while rev- enue from maintenance contracts and supplies services increased by
¥449 million (15.9%).
Overall overseas sales increased by
¥733 million (106.8%) year-on-year, due to continuing strong order s refl ecting recovery in capital invest- ments by Japanese-affi liated compa- nies in Asian markets.
As a result of the above, sales of this business division totaled ¥14,144 million, up by 22.8% year-on-year.
Clean Systems
This business division continued to struggle under diffi cult conditions in Japan. It suffered from a reduction in new shopping centers opened, re- duced total cleaning costs, and other factors, although it benefited from increased demand in the factor y market refl ecting recovery in capital investment by manufacturers. In this mar ket environment, the Company focused on uncovering new demand by stepping up its ef- forts to promote solutions for total cost reductions using new floor treatment systems and maintenance
VF-5HG
Analysis of Financial Condition
(i) Assets, Liabilities, and Net Assets
• Assets
Total assets at March 31, 2011, amounted to ¥102,933 million, up by
¥2,246 million from the previous fi s- cal year-end. Current assets increased by ¥4,055 million year-on-year. This was chiefly due to a ¥3,589 million increase in cash and bank deposits. Fixed assets decreased by ¥1,809 mil- lion year-on-year. This was attributable primarily to a reduction of ¥2,113 mil- lion in intangible fi xed assets.
• Liabilities
Total liabilities at the fiscal year-end amounted to ¥30,372 million, up by
¥4,653 million year-on-year. Current liabilities increased ¥4,778 million year- on-year. This was chiefl y due to an in-
crease of ¥1,696 million in short-term bank loans, an increase of ¥1,370 million in accrued income taxes, and an increase of ¥1,022 million in trade notes and accounts payable. Fixed liabilities decreased by ¥125 million year-on-year. The principal factors behind this were a decrease of ¥430 million in accrued retirement benefi ts for employees and a decrease of
¥269 million in other long-term ac- counts payable, despite an increase of
¥518 million in lease obligations.
• Net Assets
Total net assets at March 31, 2011 amounted to ¥72,561 million, down by ¥2,407 million from the previous fi scal year-end. This was primarily due to a decrease of ¥2,571 million in to- tal accumulated other comprehensive income resulting from a decrease in foreign currency translation adjust- ments.
(ii) Cash Flows
Consolidated cash and cash equiva- lents increased by ¥3,681 million from the previous fi scal year-end, to a total of ¥24,614 million on March 31, 2011. More specifi cally, a description of the status of each type of cash fl ow at the year-end and the underlying factors are as follows.
(1) Cash fl ow from operating activities Net cash provided by operating activi- ties totaled ¥10,285 million. This was attributable primarily to income be- fore income taxes, which amounted to ¥5,464 million, and depreciation and amortization, which amounted to
¥4,351 million, despite income taxes payments, which amounted to ¥1,084 million.
services.
In Japan, sales of cleaning equipment during the year increased by ¥22 million (1.1%) year-on-year, due to improved demand for fl oor cleaning machines for factory facilities. Rev- enue from maintenance contracts and supplies services decreased by
¥77 million (2.6%).
Overall overseas sales decreased by ¥67 million (4.0%) year-on-year. Sales for Nor th America grew in terms of local currencies but, de-
creased in yen due to fl uctuations in exchange rates, and sales for Europe and Asia continued to remain slug- gish.
As a result of the above, sales in this segment totaled ¥7,368 million, down by 2.0% from the previous year.
SE-840eSW
Notes : Equity ratio: Equity capital/Total assets
Fair value equity ratio: Gross market capitalization/Total assets
Ratio of cash fl ow to interest-bearing liabilities: Interest-bearing liabilities/Cash fl ow from operating activities Interest coverage ratio: Cash fl ow from operating activities/Interest payments
Assumptions
* All indicators are calculated on the basis of consolidated fi nancial 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).v
* Cash fl ow from operating activities refers to cash fl ow from operating activities posted under the consolidated statements of cash fl ows. Interest-bearing liabilities refers to those of the liabilities stated in the consolidated balance sheets on which interest is paid. Interest payments equate with interest paid stated in the consolidated statements of cash fl ows.
Reference: Trend of cash fl ow indicators
At Mar. 31, 2007 At Mar. 31, 2008 At Mar. 31, 2009 At Mar. 31, 2010 At Mar. 31, 2011
Equity ratio (%) 74.4 73.0 72.9 73.4 70.3
Fair value equity ratio (%) 103.6 70.6 58.8 64.7 59.3
Ratio of cash fl ow to interest-bearing liabilities (%) 36.2 17.5 24.1 17.1 31.4
Interest coverage ratio 125.3 166.6 200.7 250.6 275.2
Outlook for the Fiscal
Year Ending March 31,
2012
The Japanese economy, which has been depressed significantly in the aftermath of the Great East Japan Earthquake, is likely to see a gradual rebound in economic activity during the next fi scal year. Still, the effects of reduced industrial production and other factors may put a temporary dent in corporate earnings and in employment and personal income conditions. Despite persistent high growth in China and other emerg- (2) Cash fl ow from investing activities Net cash used in investing activities to- taled −¥5,658 million. This was largely due to expenditures of ¥5,569 million for the placement of time deposits,
¥2,000 million for the acquisition of securities, ¥1,560 million for the acqui- sition of subsidiaries’ shares resulting in a change in the scope of consolidation,
ing countries, given the continuing commodity price rises in reaction to the unsettled situation in the Middle East and other circumstances, the Japanese economy’s future pros- pects seem to becoming increasingly uncertain.
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) Being a niche leader in the busi- ness fields in which we excel; 3) Ceaseless restructuring; and 4) Man- agement based on cash fl ow. In line
with these four fundamental strate- gies, we will pursue our consolidated growth strategy on a global scale to ensure sustainable growth and con- tinually improving profitability with a view to maximizing the corporate value of Amano Corporation. The following business results are projected for the fi scal year ending March 31, 2012: Net sales ¥88,700 million, operating profi t ¥5,800 mil- lion, ordinary profit ¥6,200 million, and net income ¥3,100 million. The above projections assume currency exchange rates of US$1 to ¥82 and
€ 1 to ¥115.
¥1,445 million for the acquisition of intangible fi xed assets, and ¥805 mil- lion for the purchase of tangible fi xed assets. These outfl ows more than off- set proceeds of ¥4,380 million from the withdrawal of time deposits and
¥2,000 million from the redemption of securities.
(3) Cash fl ow from fi nancing activities Net cash used in financing activities totaled −¥648 million. This was chiefl y due to expenditures of ¥1,992 million for the payment of cash dividends by the parent company and ¥523 million for the repayment of fi nance lease ob- ligations, despite proceeds of ¥1,906 million from the borrowing of short- term bank loans.
Operating and Other Risk
Among the matters relating to the qualitative information contained in these summary fi nancial statements and relating to the consolidated financial statements, the following are those that could be envisaged as having a possible material impact on investors.
Matters that are considered to be potential risk factors in the under- taking of business by the Amano Group either now or in the future are estimated to the greatest extent possible, and the risk factors are then addressed and eliminated in the course of business activities. Matters relating to the future are those that are adjudged to be so as of the date of the release of these fi nancial results (May 9 , 2011). (i) Impact on earnings due to changes in the business environ ment
The Amano Group uses its accumu- lation 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 glob- ally.
In the year ended March 31, 2011, the time information system busi- ness accounted for 74.2% of total sales, and the environment system
business accounted for 25.8%. Be- fore deduction of unallocated ex- penses the time information system business contributed 79.5% to oper- ating profit, while the environment system business contributed 20.5%. In terms of weighted average sales over the most recent five year s, time information system business accounted for 70.3% of total sales and for 71.9% of operating profi t. 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 expansion is expected for such reasons as a signifi cant change in the demand str ucture 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 competitors. In that event, if a competitor were to enter with innovative products or solutions that surpass Amano’s, the Amano Group’s market advantage would decline, and that may have a material impact on its business per- formance.
(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 busi- ness results may be impacted by fl uctuations in exchange rates when transaction amounts overseas are converted into yen.
(iii) Information security
In order to offer system solutions and undertake the application ser- vice provider business, the Amano Group handles confi dential informa- tion such as personal information concerning customers or provided by customers. In view of this, the Group has developed a structure for the management of confi dential information, implements thorough staff training, and uses software to prevent leaks of information for the purpose of preventing network ac- cess to confi dential information and of preventing leaks of confidential information through the physical removal of data and information. To that end it has also established an Information Security Management Committee to ensure a foolproof structure. Nevertheless, in the event that an unforeseen situation were to arise, and information of the kind described above were to be dis- closed externally, resultant factors such as loss of confi 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 medi- um-term management plan.
1) Time information systems
•Information systems business Amid continuing efforts by the labor au- thorities to more strictly monitor unpaid overtime and long working hours (overwork) in order to eradicate these practices as well as an increasing need to deal with risks sur- rounding employment, such as industrial court cases resulting from deteriorating em- ployment conditions, there is strong poten- tial demand among companies to establish or rebuild T&A systems. The aim is to create a company-wide labor time management system to optimize business operations by reducing working hours, improving work ef- fi ciency cutting costs, etc. In addition, we will 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 environment surrounding the business in this segment has been facing a significant shift from a period of owning systems to a period of 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 targeted at large companies by strengthening our competitive advantage with enhanced software functions, and re- inforcing our marketing structures with col- laboration between sales staff and systems engineers. In addition, we will aim to expand our Application Ser vice Provider (ASP) services business by reinforcing alliances with Group companies in Japan in order to respond to the changes of the times. To enhance the profi tability of this business, we will strictly manage revenue from our so- lutions 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 establishments, so as to boost earnings ca- pacity.
Overseas, we aim to strengthen our custom- er base and expand distribution channels in North America, leveraging the strengths of Accu-Time Systems, Inc. which we acquired in February 2011 in the U.S. 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 ex- tend sales channels for software products of Horosmart, S.A. (France) across Europe and reinforce our organizational structures toward globalization.
•Parking systems business
The parking system business is seeing its sur- rounding operating conditions change signifi - cantly. For example, the broader installation of charging stations for electric vehicles, pro- grams to reduce greenhouse gas emissions, and the introduction of car sharing services designed to ease traffi c congestion have led to a diversifi cation of parking lot operation styles. Meanwhile, initiatives have developed to enhance the quality of customer service offerings, to conserve electricity through the use of LED lighting, and to operate environ- ment-friendly parking spaces through mea- sures 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 profi tability and effi ciency of parking space management. We will steadily meet the needs of existing customers by offering high value-added products with network capa- bilities and inbuilt IT functions and forging ahead with the holistic solutions business, including maintenance and parking lot man- agement services in close collaboration with Group companies.
In the market for bicycle parking that has arisen as a result of the problem of aban- doned bicycles, we will seek to revitalize and expand the market by proactively making
proposals on ecology-oriented initiatives in- cluding rent-a-cycles and community bicycle systems. In the market for exclusive gate sys- tems controlling entry and exit to and from sites such as factories, we aim to expand the new market with the emphasis on safety and security in addition to making proposals on labor-savings and rationalization.
Overseas, we aim to expand business and establish ourselves as the top manufacturer of parking systems in the North American market, leveraging the strengths of Amano McGann, Inc. to further boost sales by build- ing closer relationships with customers. With an establishment of Amano UK Ltd. in England, we aim to capture demand for replacement from existing customers and cultivate the new market in Europe by lever- aging direct distribution networks. In addition, we will strive to further expand our business in Asia with the main focus on South Korea.
2) Environment systems
•Environment systems business The environment system business sees con- tinued recovery in its surrounding operating conditions in Japan. While Japanese manu- facturers continue to accelerate their shift to overseas countries, driven by recovery in capital investment and by strong orders for machine tools for emerging markets, particularly China and other Asian countries, demand overseas, particularly for standard dust collectors, has picked up.
3) Human resource development Recognizing that people are the most im- portant management resource for the op- eration of our business, we have positioned human resource development as a priority issue and will focus on developing employ- ees who have no fear of change and are willing to meet the challenges.
Information Systems:
Time Management Equipment Increased Installations in the Public Sector Market
Shifting to electronic T&A control using IC / ID Cards from the conventional attendance sheets
In view of “preventing health prob- lems (including mental health) as- sociated with prolonged working hour s” and “optimum control of working time”, regional Govern- mental bodies, public corporations (associations, foundations) are taking steps to review their conventional T&A control methods. The use of time recorders and IC cards, which accurately logs the in-times and out- times associated with attendance, is being adopted as the solution. At Amano, backed by the exten- sive deliver y track record of such
systems, is actively working to expand this market demand by providing IC / ID cards and optimum electronic T&A solu- tions depending on the size and opera- tional environment.
TimePro-UG Payroll, HR, Accounting – various software
packages Core system
Door security Data
Data communication communication
Linked Linked Linked Data
communication
Various time recorders
A New Style in T&A System Package
“Time P@CK-WL”
Industry’s fi rst! The whole “TimeP@CK” range now comes with Bluetooth® wireless capabilities
Amano’s long run product, the “PC interface Time Recorder TimeP@CK“ series, has now adopted Bluetooth®*. The conventional method of trans- ferring data from the time record- ers to personal computers relied on the use of cables or USB thumb drives, which limited the physical positioning of the time recorder unit. By using Bluetooth® wireless
communication, the time recorder can now be placed anywhere within the maximum communication range. Another user-friendly feature. The “TimeP@CK-WL” is the ad- vanced version of the “TimeP@CK”. The features such as ”ease-of use”,
“high functionality” and “accuracy”, which has made “TimeP@CK” so popular, is inherited and since its launch in February, is gaining popu- larity among customers who are installing time recorders for the fi rst time.
*Bluetooth®: “Bluetooth” is a communication standard for exchanging data over shor t dis- tances (several meters) between fi xed and/or mobile devices.
If there is a Time Recorder positioned within the maximum range, there will be no need to connect cables and data collection is possible without leaving your desk.
”Bluetooth®”is the registered Trademark of Bluetooth SIG, Inc., and Amano Corporation is a licensed user.
1.Time Punch 2.Wireless 3.Edit & Data aggregation
Max 10m Beep!
Parking Systems
The Key Word is “Hospitality” Japan’s fi rst “Next Generation Parking Service” is now operational
January 2011, Amano installed Japan’ s first “Next Generation Parking Service” in a large shopping com- plex in Narashino-shi, Chiba prefec- ture.
In general, administration costs for car parks in large shopping facilities are high in order to alleviate traffi c congestions and to maintain safety. This fi rst “Next Generation Parking Service” not only reduces such costs, but it also has the following features that enable smooth vehicle guid- ance from arrival to departure. This new “hospitality” service is drawing attention as an effective method to alleviate congestions;
(i) On arrival, the driver can check the electronic guidance displays near the ceiling for vacancies, (ii) the guidance displays will guide the vehicle smoothly to the vacant park- ing space, (iii) the KIOSK terminals*,
located at various points within the shopping center, will provide the visitor with shop information, and is capable of “locate-your-vehicle” by keying-in the registration number, (iv) the guidance displays will guide the vehicle to the exit on departure.
*KIOSK terminal: The “KIOSK terminal” refers to liquid crystal touch panel displays, often located on street corners and shopping centers to ob- tain information through visual search.
Information terminal (KIOSK terminal)
Visitors are guided smoothly and promptly with the combination of electronic displays, guiding signs, and vacancy indicators.
Guiding sign Vacancy indicator
Guidance display
Each parking space is equipped with an ultrasonic sensor which monitors the vacancy status. The guidance display and the vacancy indicators will show the visitor the vacant area and guiding sign pin- points the vacant parking space. Guidance
display
New Developments in “Rent-a-cycles” Nationwide expansion of “Bicycle parking systems for community bicycle programs”
An increasing number of regional Government bodies are reusing abandoned bicycles as rent-a-cycles. In order to improve convenience for its users, “Community Bicycle Pro- grams”* are seen as a new develop- ment and it is expanding nationwide. March 2011, Amano installed a
“Bicycle Parking System” for a com- munity bicycle program in Takamatsu city, which is so far the largest of its kind, in Japan. Parking gate systems (UT-1500 series) were installed at each of the 7 rent-a-cycle docks around the city. By fi tting identifi ca- tion IC tags on all of the rent-a- cycles (1.250 units), and by linking all the docks to a communication network, circulation and inventory can be controlled at a central point. In addition, by interfacing the bicycle parking system with the local trans- por tation system, railway prepaid IC cards “IruCa”, can be used to pay the rent-a-cycle fees. This will provide a seamless environment for rent-a-cycle users and train users.
* Community Bicycle Programs: “Community Bicycle Programs” are a type of a rent-a-cycle where the renting and return can be done at any of the multiple bicycle docks. In Japan, it is
Business Activities
TimeP@CK-iC
anticipated that the system will complement public transportation mainly in urban areas and be developed as the “last mile” transportation means.
*IruCa is a registered Trademark of the Taka- matsu-Kotohira Electric Railroad Co. Ltd.
Renting and returning can be done at any dock!
Rent
Return B station dock A station dock
IC Tag
Environmental Systems
Domestic Manufacturers are Accelerat- ing Production Shift Towards Asia Demand for standard Dust Collectors are expanding
Amid the production shift to Asia by the domestic manufacturers, in or- der to expand the market, Amano’ s Asian sales promotion team has been concentrating in the prompt capturing of such information and to co-ordinate efforts with Amano’ s overseas network to provide total suppor t from equipment installa- tions to engineering.
For instance in Indonesia, where Japanese motorcycle manufacturers represent 95% of the market share, increased its production capacity to meet the rising domestic demand. Several hundred dust collector s were installed as part of a package of new machine tools and parts ma- chining equipment.
At Amano, sales and engineering abilities are being actively enhanced at overseas subsidiaries and efforts are being concentrated to develop and expand into new Asian markets such as Vietnam and India.
Filterless Mist Collector MJ series
An installation example
Clean Systems
A New Floor Care System that Pursue Cost Benefi ts
Amano Green Coating System The main concerns regarding rou- tine and daily cleanliness are shifting to “labor-saving”, “energy-saving”, and ”environment-saving”. In addi- tion, amid the ongoing reductions of cleaning costs by large shopping centers, depar tment stores, super- markets, convenience stores, these commercial facilities and retailers are adopting ceramic fl oors and self- cleaning.
At Amano, in order to respond appropriately to such changes, in addition to the existing “dr y care system” for commercial facilities, has added and promoting a new self- cleaning package based on the new
“Amano Green Coating System”. It is a comprehensive system designed to support the user from the initial fl oor treatment, to the daily and pe- riodic maintenance.
Before treatment
After treatment Ultraviolet
irradiation
Domestic Group Companies Reducing Administrative Costs and Im- proving Effi ciency for Medium / Small Businesses
“Cloud T&A service CYBER XEED – “Smart “T&A Amano Business Solutions Corporation April 2011, Amano launched its Cloud T&A ser vice the “CYBER XEED - Smart T&A”.
This is the inexpensive version of
“Cloud Computing CYBER XEED” and it is a new service to cater for the needs of medium to small size businesses. It comes with speedy operations with high security. In wake of the East Japan Great Ear thquake, which str uck March 2011, many corporations have be- come more aware of the impor- tance of Business Continuity Plans
(BCP) and as a result increasing number of corporations are divert- ing or diversifying risk by relocating their information system ser vers outside of the company.
This cloud T&A service from Amano will operate with just an Internet connection via an Internet browser. The user does not need a server to upload the service nor a software license, thus being cost friendly. The service is answering to the needs of many companies.
Superior
PC IC Card Reader
HR Time Recorder
I n t e r n e t
Data Center
Operations Control Center
Privacy mark certification AdministrativeT&A
Center DataAggregation
Payroll Approval
Overseas Group Companies The First Step to Start Further Growth - Commemorating their 40th Anniversary Horoquartz S.A. France
Horoquartz S.A., a subsidiary of Ho- romart France, has been a member of the Amano Group since January 2008 and plays a vital role in ex- panding Information Systems busi- ness, commemorated its 40th anni- versary in May 2011. Horoquartz is now fi rmly established as the No.1 T&A system integrator in France. The ceremony slogan was “40 years of Confidence”. Over the year s Horoquar tz has built tr ust from customer satisfaction and maintain- ing that trust has led to confi dence for fur ther growth. This ceremony marks the fi rst step in this endeavor. As a core company to globalize Amano’s Information Systems busi- ness, Horoquar tz’s operations will no longer be exclusive to France, but will expand across Europe.
40th Anniversary celebration
Mr. Hubert de Rugy, CEO Horoquartz S.A. France, giving his speech at their 40th Anniver- sary celebration
Amano USA Holdings, Inc.
Amano Cincinnati Inc. – Amano Time Business Unit New Product Launch
The New Time Guardian Series is an expandable employee time management system that automates the collection, calculation, and preparation of time data for processing payroll. This scalable time & attendance software provides businesses add-on options such as employee upgrade, user upgrade, web interface, advanced scheduling, advanced overtime and the ability to integrate with Amano’s Nexus Lite, Nexus 220 and AmanoNet.
PIX Series marks a new generation in time recorders. This electronic time recorder has the ability to synchronize to the Atomic Clock and provides voice activated programming for easy setup! The PIX-75 automatically adjusts year, month, date and Daylight Sav-
ings. This clocks prints in regular or military time, with minutes, hundredths, twentieths or tenths, you choose! Three year bat- tery backup for program
…”set it and forget it”.
Next Generation in Access Control ACI has successfully launched the Nexus Lite to various mar- kets including healthcare, professional offi ces, retail, locksmiths, education and security. Nexus Lite was designed with real-
time web based access control. This system manages up to 8 doors (expandable), 16 readers with anti-pass back, supports 1,000 users (3 cards per user) with the capacity to buffer the last 5,000 event transactions. Success Stories
ACI adopted a new business strategy to effectively improve our Dealer Network Channel. In doing so we have success- fully aligned our Time Business Unit with Intuit, Inc to market QuickBooks Pro, Payroll and Merchant Services combined with Amano’s Time and Attendance Solutions.
A C I p a r t n e r e d w i t h S P Richards, the world’s leading wholesaler of offi ce and com- puter supplies to the retail stationery dealer. SP Richards distributes over 30,000 busi- ness products to a network of over 7,000 resellers in the
United States and Canada. ACI currently has 32 sku’s online. The TS-3000i made headway in the financial market and now has taken a life of its own in the Health care industry. Hospital Corporation of America (HCA), one of the nation’ s fi rst hospital companies has sought out Amano for 200 units of the TS-3000i. HCA has approximately 164 hospitals and 106 freestanding surgery centers in 20 states, including Great Britain. The TS-3000i is being used for emergency entrance areas and chest pain trauma centers.
Black Box Corporation, a world leader in communications and infrastructure products and solutions has agreed to distribute Amano’s TS-3000i under private label. Black Box’s Auto-Sync Time Clock (ASTC3000) is being sold to numerous markets including banks, investment brokers, casinos, hospitals and 911 call centers. The PoE version is also available through Black Box.
Time Guardian Pro made a tremendous mark in 2010. Surgi- cal Care Affiliates, LLC (SCA) purchased the easy-to-use workforce management suite to operate in their headquarters
in Birmingham, AL. The MTX-15 terminals were installed in 150 ambulatory surgical centers and surgi- cal hospitals. Pacific Health Corp in Tustin, CA has sought Amano for a comprehensive time & attendance system that will accommodate their 4 locations.
ACCU-TIME SYSTEMS, INC ATS joins Amano Group A c c u - T i m e S y s t e m s , I n c . (ATS), a trusted global leading developer, manufacturer, and supplier of biometric and non- biometric terminals to the Time
and Attendance and Workforce Management industry, based in Ellington CT joined Amano Group in March, 2010. ATS will provide a good synergy effect to Amano’s sales channels for time and workforce management.
New Product Launch
Accu-Time Systems antici- pates growth opportunities in expanding markets with its introduction of three new products. The PAYmate
™ time and attendance terminal is targeted at small companies requiring fast installation and ease-of-use. The AccuTouch™ offers a new biometric optical fi ngerprint reader designed to read fi ngers previously unreadable by conventional sensors. Cesium™, an Oracle Validated Product, is a total hardware and software so- lution that allows ATS terminals to seamlessly integrate directly with Oracle PeopleSoft Enterprise software in use around the world. IMS Research, a supplier of
market research and consultancy services, recently ranked ATS as the second largest workforce management hardware vendor in the Americas market at nearly 10% market share.
Success Stories
A major fast food restaurant chain in the United Kingdom chose Accu-Time Systems’ Maximus workforce management terminal for its 1200 locations. ATS supplied the Maximus with certain custom modifi cations that meet the restaurant chain’s strict specifi cations. Also in The UK, a hospitality group chose Maximus for its 1100 public house chain. This application is one of the largest biometric implementations in ATS history. A major mass merchandise retailer with locations around the world has renewed its service and support agreement with Accu-Time Systems for its Optimus workforce management terminals. Also renewing its maintenance agreement with ATS is a multi-national pharmacy and consumer products chain that also uses ATS’ Optimus terminal.
Amano McGann, Inc. – Parking General
The economy stabilized a bit in 2010 but unfortunately new construction did not rebound which had a nega- tive impact on the parking systems business. Even with these challenges the organization as a whole worked hard to win new customers and to maintain our existing base. This
was accomplished through the strong management of our
established channels of Branch, Dealer, National Accounts, and Vertical Markets resulting in another profi table year. The focus on vertical markets expanded in 2010 to included several advancements in not only new product development but also the successful launch of several strategic alliances. Both the development and alliances enhanced the core AMI product offering and are now fully integrated.
Strategic Alliances Park Assist
Park Assist, the world leader of parking guidance, has joined forces with AMI as the exclusive representation in the US and Canadian markets. Unique features of the Park Assist solution include the use of imaging to recognize an occupied space as well as reading the license plate of the vehicle. Patrons have the ability to fi nd their car by entering a license plate number at the kiosk or the AMI Pay Station. When integrated with LPR, the M3 can relate the location of the vehicle to the ticket allowing the operator to charge different rates based on location without the need for nesting lanes. The partnership between AMI and Park Assist was strengthened with the in- stallation of the fi rst M3 products in the United States in 2010. AVPM
The partnership with Automated Valet adds the advantage of combining the leader of valet automation with the strength of the AMI distribution net- work. The AVPM advantage includes the unique feature of collecting images of vehicle damage automatically at the entrance or manually with an iPod touch, iPad, or iPhone with the Amano Valet application. The application can scan 2D barcode tickets with the iPhone / iPod camera or linear barcode with the scanner / credit card attachment for the iPod touch. Other key features of the Valet system include the convenience of requesting your vehicle via text message, email, or cell phone; employee time and attendance tracking, and populating vehicle information when scanning the VIN barcode. Development has started on integration for the processing of bar code valet tickets and validations in the AMI Pay Station.
Product Development iConnect®
Development of the iConnect® Software was completed and launched which allowed the integration with on-line partners to sell prepaid parking and discounts at the exit. For example, an integrated solution with a third party operator allows a pa- tron to purchase parking online and gain access to the facility with a barcode printed at their convenience. The iConnect® application has also been integrated with third party web sites to allow bar code coupons to be distributed on-line and used at the exit.
PCI / PA-DSS
Now listed on the PCI website, AMI continues to provide secure products where electronic security is of the utmost importance. Through countless hours of working with our PCI certifi ed assessor, AMI has achieved PA-DSS validation for all of our software and hardware products.
The major card brands and the PCI council have created a very rigorous process to insure credit card security and AMI will continue to stay in front on PCI security issues to ensure client satisfaction.
Success Stories
Amano McGann continues to employ new technology and industry leading products to secure success with major projects across the country. Significant installations include: Westchester’s Ridge Hill in Yonkers with multiple Pay Stations and a custom re-entry feature, over fi fty AMI credit card read- ers for DC’s transportation authority with another seventy slated in the coming year, and Chicago’s Prentice Hospital
barcode tickets. Ease of integra- tion and remote serviceability are two of the several great and innovative benefits this system offers.
With Astrow 2013, the next ver- sion of the proven T&A software for small and medium sized busi-
nesses with an installed base of more than 5.000 customers in Europe, Amano Europe resolutely goes for the SaaS and cloud computing business concept, incorporating WEB2.0 technolo- gies. Astrow 2013 will continue to be the pan-European T&A solution for the SME market. The ability to integrate to 3rd party solutions, the ease of installation and the introduction of mobile solutions are key objectives in order to suite the modern and complex market needs.
Horoquartz, S.A.
In France the major event of the past twelve months was the celebration of the 40th anniversary of Horoquartz. Customers and staff were separately invited on the banks of the Seine River in Paris, next to the Eiffel
tower, under the slogan “40 years of confi dence”. Keep customers and staff loyal is indeed the key for a company that offers services (70% of sales) and expertise.
Customers themselves made presentations to explain how the Workforce Management solutions of Horoquartz did contrib- ute to create new values in their companies: added value (cost reduction) and human value (user satisfaction).
The day after the 330 staff members and 10 group delegates from Japan and Europe gathered for the private celebration. In his speech Mr. Haruta congratulated the teams for their com- mitment and results and Mr. Nakajima expressed his confi - dence in the international expansion of Horoquartz integrated solutions.
For a moment the teams became actors and showed through short theater scenes how the human values in the company could help bringing satisfaction and added value to the cus- tomers.
Scopus-Omnibadges,S.A.
For Scopus Omnibadges this fi scal year was a year of expan- sive growth.
In January 2010 Scopus Omnibadges acquired Prescard. This company was able to meet the requirements of customers in market segments such as fashion houses, perfumes, jewelers, and airline companies. Printing technologies like silk screen and hot stamping met the demands that Scopus Omnibadges could not accommodate untill now. Especially the ability to print metallic paint, like gold, and the ability to print holograms on the cards allow Scopus Omnibadges to approach and serve new markets.
In January 2011 Scopus Omnibadges acquired the ID solutions division of Sogedex. With this acquisition Scopus Omnibadges clearly expanded its service offering by having now the ability to offer, implement and support its own software packages for creating and manipulating card data. As such Scopus Omni- badges has reached the unique position in France and Europe of being a one-stop-shop that can both create cards and offer integrated card and data security solutions at the same time. Scopus Omnibadges is now ready to pursue its international strategy.
As a result of these two acquisitions and of a steady growth in the core business, Scopus Omnibadges will double its turnover in 2012, compare to the turnover in 2010.
Amano UK. LTD.
“The set-up of the direct business in the UK is well underway with new offi ces established for both Time and Parking Divi- sions. The Time Division has recruited a sales team of 8, now starting to take regular orders of the newly refreshed Astrow which features both valet and FlexScan integration with the
AMG-7800 to allow valet payments and automatic vehicle call down through the Central Pay Station.
The company continued to expand its reach in the Airport market with major installations at Van Nuys Airport in Los Angeles, Lynden Pindling International Airport in Nassau, Bahamas, and Denver Green Park which included FlexScan integration with pre-pay application and the Frequent Parker Program.
AMI is also fi nding success through its strategic partnerships. Installation of the M³ system at Santa Monica Place in Cali- fornia gained national press
coverage for state-of-the-art parking guidance technology and the first Find Your Car solution in the US. Parking Summit
The fi scal year of 2010 ended on a high note by hosting the Amano Parking Summit in Las Vegas, Nevada. Amano Mc- Gann personnel and distribu- tion teams from all around the country joined forces to get up to speed on the AMI corpo- rate vision, improved sales techniques, and the latest product introductions. The Summit was an action packed event that included two full days of information rich presentations, hands on breakout sessions to increase product familiarity, and the announcement of the iPad 2 as a sales tool.
Each Summit attendee received pre-loaded iPad 2’s contain- ing various sales related content and videos. Use of the iPad 2 in the fi eld puts knowledge and power into the hands of each sales professional resulting in a more enticing sales pitch with marketing materials available in several new and exciting formats.
The sales meeting provided an opportunity to connect with the sales team and distribution partners, reinforce goals and promote sales strategies. The Summit was received positively by all who were present, so much so that many agreed that the Summit was the best seminar they had ever attended. At- tendees left Las Vegas feeling energized, highly motivated and full of knowledge.
“This was one of the most informative, educational, positive meetings that I’ve ever attended.” -Greg Brewer, Carolina Time. “The information provided including presentations, breakout sessions and networking with colleagues was invalu- able.” -Curtis Bateson, Parking Systems Division - Western Canada, Amano Cincinnati Canada Inc.
Best In Show II
AMI raised the bar by earning the prestigious “Best in Show” award once again at both the Canadian Parking Show and the parking industry’s major trade show, The International Parking Institute. AMI brightened up the parking shows with a neon theme to compliment the
IPI’s Las Vegas location. The neon elements were created by local artist Matt Thomp- son and added to a display that was fabricated by AMI personnel.
Amano Europe Holdings, N.V.
Also in this fi scal year Amano Europe continued to invest in both parking solutions and new time and attendance products. The X-Parc parking solution has now been installed success- fully in 18 different countries, including Malaysia and Australia. With X-Parc Amano Europe is able to offer a robust, fl exible and network centric solution based on Linux technology and
Suite as well as Access Control and ID Card management. The Time Division has developed a webshop and ever- increasing network of independent dealers for traditional time recorder sales. In the Car Parking Division Amano is focussing on introducing a rental solution into the market place
and is already winning sizeable installations at local councils as well as private car parks. The team is focussed on providing excellence in Customer Care and through the sales and engineering team is quickly migrating maintenance agreements for Customers so that they can now deal with Amano.”
Amano Korea Corporation
Commenced Parking Administration Ser- vice for Public Parking in Seoul, Korea From October 2010, Amano Korea Corporation (AKC) has commenced its parking administration service for Seoul city’s public parking facility.
This public parking facility consists of on-street and off-street parking and the fees will be collected using the following 3 methods: For on-street parking, meter patrols will carry PDA terminals (parking fee calculators) and collect the fees during their rounds. For off-street parking, fees will be collected by manned or unmanned pay stations
AKC will continue to strengthen and seek expansion in the public parking market.
Commenced LED Lighting Business In addition, AKC, utilizing its position as the No.1 parking com- pany in Korea, has started up a “LED Lighting Business”. Amid the increasing interests in environmentally friendly products and energy conservation, this business in anticipated to grow as a new solution in conjunction with parking administration and expansion efforts are being made.
LED LAMPS LED LAMPS
Energy Energy Saving
Saving Lower HeatLower Heat Emissions Emissions
Dimming Function / Dimming Function / Remote Control Remote Control Environmentally
Environmentally Friendly Friendly Visible Light
Visible Light Only Only Long Long Life Life
LED LAMPS
Energy
Saving Lower Heat Emissions
Dimming Function / Remote Control
Environmentally Friendly Visible Light
Only Long Life
PDA Terminal Unmanned Pay
LED lighting installed in an underground parking facility
