April 1998 March 1999 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 1998 – March 1999

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Yasuyoshi Komoto

Dear Shareholders:

It is my pleasure to present you with the financial report of Amano Corporation for the fiscal year which ended in March 31, 1999.

With "Time & Ecology" as its business theme, Amano has endeavored to meet customer's needs by proposing system solutions and high quality products, providing new software applications, and strength- ening customer service in the area dealing with "people and time" and "people and environment." In response to Japan's prolonged and severe recession exemplified by the decline in domestic consumption and cutbacks on capital investment, Amano has reinforced and concentrated its resources in those areas showing growth, and at the same time has worked to aggressively cut costs and expenses. Despite the diligent efforts taken, however, it is very unfortunate to report decreased revenue and decreased profits for this fiscal year. Reasons for this include taking an extraordinary loss on the sale of securities, for which the current price has dropped so drastically that the investment was believed to be unrecoverable, and also taking a loss on the re-evaluation of our investments in securities. Both of these measures were taken to improve our financial strength. As a result, net profit was greatly reduced for this fiscal year.

The business strategy for the new fiscal year will include the development of new products and application software that meet the needs of various levels of customers in the time information systems market. Also, we are developing new and innovative products in all other business units as well, including parking systems and ecology systems. In addition, Amano will provide "customized service" for those customers that have been using Amano's products for years in order to promote further sales. In conjunction with the business efforts described above, Amano will continue to develop new products that meet market trends with minimum turn around time, cut costs, and improve both profitability and financial standing.

We ask for your continued support in the coming year.

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time information systems market, and the market for environmental products, which were steadily growing until then, were affected. Thus, the business environment surround- ing these products worsened this fiscal year.

Amano's total sales volume was 56.56 billion yen, down 5.9% from last year. Of this amount, domestic sales volume was 42.99 billion yen (down 7.0%), and exports totaled 3.18 billion yen (down 20.0%). Operating profit comprised 4.791 billion yen, a decrease of 38.6% from the previous year. The main reasons were decreased sales volume and increased cost of goods sold. Amano sold off securities of which the price has dropped so drastically that the loss was believed to be unrecoverable. This loss totaled 2.309 billion yen on the sale of marketable securities. Of this amount, 1.003 billion yen was reported as a non-operating expense. There was a write-down of investments of 170 million yen and loss of 505 million yen, which was recorded as an extraordinary loss. As a result, ordi-

This Year's Business

Results

Japan's severe recession continued due to the decline of capital investments and domestic consumption, the insecurities of the monetary system, and the confusion in the Asian economy. Under these circum- stances, Amano aggressively ex- panded its business operations, pro- moted its global development framework in the areas of information systems and parking products to meet changing market needs, and streamlined its corporate structure by cutting costs and maintaining strict profit control.

Until recently, the areas dealing with

"people and time" and "people and environment" were in high demand. Businesses tried to achieve better time and resource management, and meet the growing trends of environmental management such as cleanliness, energy conservation, recycling, and waste disposal. How- ever, due to the weak economy, capital investment dropped drastically this fiscal year. As a result, the

Business Results

by Product Line

Time Information Systems

Time and Attendance, Payroll, Personal Information, Access Control, Cafeteria Pay Systems

Sales volume this year for TIS products leveled off at 12.04 billion yen, up 7.6% from last year. Amano's job and payroll systems treat workers as resources and maximize the use of HRM (Human Resource Manage- ment). Time Pro for Windows LAN Version which was developed based on Amano's many years of sales ex- perience and acquired know-how has won substantial reviews from customers. Since its release, the application of the software ex- panded from job and payroll systems to personnel, access control, and cafeteria pay systems. With nary profit was 1436 million yen, a decrease of 78.0% from the previous year. Net earnings were 744 million yen, a decrease of 63.1% from the previous year.

0 10,000

1995 1996 1997 1998 1999 1995 1996 1997 1998 1999 1995 1996 1997 1998 1999

20,000 30,000 40,000 50,000 60,000 70,000

Net Sales (¥ million) Net Ordinary Profits (¥ million) Net Profits (¥ million)

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000

0 500 1,000 1,500 2,000 2,500 3,000 3,500

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Time Management Equipment

Time Recorders and Time Stamps

Sales volume for these products totaled 8.24 billion yen, down 17.2% from the previous fiscal year. Do- mestic sales volume was 3.532 billion yen, down 16.9%. Exports comprised 1.742 billion yen, down 29.5%. In the domestic market, demands from small and medium businesses decreased drastically. For ex- por ts, the recession in South East Asian countries resulted in decreased number of units sold and decreased revenue.

Parking Systems

Parking Management Systems and Man- agement Services

Sales volume of parking systems and equipment this year totaled 15.67 billion yen, up 1.1% from last year.

Cafeteria Management System, Time Pro

additional demands to update the system to deal with the Y2K problem, TIS has been growing steadily.

However, sales diminished greatly at the end of the year due to the ef- fects of the recession. Finalizing sales by year-end was difficult due to customers delaying or canceling orders. As a result, this year's sales increase was limited to 3.3%. Hardware (ter- minals and peripherals) sales decreased 6.1%, while software sales increased 10.7% over last year. ATMS (Amano Total Maintenance Service), which was started this year, has won great reviews for its high quality service of Amano's TIS, and received a large number of contracts. Sales related to TIS maintenance service increased 87% over

the last year. This year sales of the EX 3000 Series Time Re- corder reached 500,000 units. To commemorate this, the EX3000Nc-F (flower design) and EX3000Nc-H (heart design) were put on sale.

The first quarterly journal, "HRM NEWS", was published in an effort to introduce time information products. Information about new products and events are printed in a timely manner.

The sales of Intelligent Time Record- ers decreased 11.6% from the previous year due to the diminishing number of new stores and decreased demand from small and medium sized businesses.

In the domestic market, strong demands continued due to expanding public parking facilities, econo- mizing of parking management operations, improvement in customer ser vice in shopping districts, and making use of private parking lots. Banks and municipal offices are turn- ing their parking lots into profit cen- ters on weekends by opening the parking space to the general public on weekends. There were additional demands for cashless payment systems and information systems using computer networks.

However, domestic sales volume increased only by 0.7% due to fall- ing market prices caused by increased competition. Exports decreased 4.8% due to the decline of demand from Asian countries. On the other hand, by meeting the customer's needs, revenues from customer ser vice assistance (24- hour maintenance service of equipment) increased 14.0% from last year. The sales volume of management systems such as parking management operations also increased 49.1% from the previous fiscal year.

The Tokyo Keio Plaza Hotel is the first in the hotel industry to purchase the Credit Card Auto- matic Payment System for use in parking systems. This system focuses on ease of use. In addition to credit cards, it is capable of handling large bills and issuing various service tickets.

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Cleaning Systems

Vacuum Cleaners, Dry Care Cleaning Sys- tems, Cleanliness Management Systems

Sales volume of this segment comprised 9.2 billion yen, down 2.3% from the previous fiscal year. As companies recognize clean floors as being a fundamental requirement in various business facilities, plants, and offices, Amano proposed the new dry care system based on the key- words "protect, wipe, wash, polish." This total system aims to proactively preser ve cleanliness rather than cleaning after the floors get dirty. The new "High-speed Buffing Ma- chine DE-500A" and "Car pet Cleaner" met user's needs and yielded steady sales.

In the domestic market, customers in the building maintenance market have cut back on contract cleaning work. Also, the service and conve-

"High-temperature Hazardous Gas Removal System" receives substantial attention as a way to resolve the dioxin problem.

Sales volume of these systems this year was 11.38 billion yen, down 17.8% from the previous fiscal year. Due to the growing trend of incor- porating environmental management systems, manufacturing industries were investing money into ISO 14000, recycling, waste disposal, food sanitation management, and technological renovation. However, due to the reduction and restraint on these capital investments, sales volume dropped greatly.

As far as individual systems, the sales volume of standard dust collectors decreased 19.6%, with sales of large- sized dust collectors down 21.0%, pneumatic powder conveyance systems decreased 22.3%, deodorization systems fell 23.6%, and sanitation system sales were down 2.6%. However, the sales of high-temperature hazardous gas removal system,

High-Speed Buffing Machine DE-500A

Environmental Systems

Standard Dust Collectors, Large-sized Dust Collectors, Pneumatic Powder Conveyance Systems, High-temperature and Hazardous Gas Removal Systems, and Deodorization Systems. As well as,

Sanitation (Food Sanitation Management) Systems

Riding Automatic Floor Cleaner for large stores SE-860N

even though it only amounts to a small fraction of environmental system sales, increased 192.5% due to the high demand to resolve the dioxin problem that has been getting so much attention in Japan.

nience store industries have cut back on opening new stores. These factors resulted in decreased sales. However, the cleaning management system has received rave reviews for its comprehensive approach to high quality cleaning. The sales for this system increased 22.9% from last year.

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Amano Expands its IT

Integration Division

The IT Integration Division was cre- ated last October. This division was started in order to provide system integration services which include consulting services related to the high-end ERP market, and also to expand business in that area. Amano joined hands with SAP Ja- pan Co., Ltd. the largest ERP ven- dor in Japan, to hold a forum called

"SAP Japan HR Forum 1999-Inno- vative Human Resource Manage- ment Systems for the 21st Century" in Tokyo, Yokohama, and Osaka. Many people from various companies in charge of personnel and information systems attended these forums.

*ERP (Enterprise Resource Planning) ERP is a business application developed by SAP A.G., a German company, designed for BPR (Business Process Reengineering) as a way to renovate businesses. ERP is being used as a core business system by major firms around the world with a heavy concentration in North American and European firms. With the world's dominant ERP vendors taking part, this market is believed to become a 100 billion- yen market in Japan in the year 2000.

Amano Enters the Waste

Disposal Market :

The new garbage carbon-

izing reduction system

"ACN1000" goes on the

market

Garbage carbonizing reduction system

"ACN1000"

Amano entered the waste disposal market in order to expand the ecology division this fiscal year. Amano has introduced the new garbage car- b o n i z i n g r e d u c t i o n s y s t e m

"ACN1000" to the market in May 1999.

This garbage reduction system heats the garbage-processing compar t- ment indirectly using one burner as a heat source and carbonizes and reduces the weight of the garbage by pylorysis. Because the system reuses the organic gas that is generated in the carbonization process as heat energy, low running cost (fuel-efficiency) is achieved. In addition, because the garbage is not directly burned, the generation of dioxin can be restrained. Three models have been released to date. The standard model, "ACN1000" can handle up to 1000 liters (equivalent to approximately 600 kg) of garbage. It is a large-capacity model. The weight reduction factor is 90

New Large-sized

"WRT10000 Series" Dust

Collector Conserves

Space and Reduces Instal-

lation Time

The new "WRT-10000 " was added to Amano's best-selling large-sized dust collector "WRT Series" in May 1999.

New Large-sized Dust Collector "WRT10000"

to 95% with respect to the total weight of the original garbage (600 kg of garbage is reduced to approximately only 50 kg of carbon). The amount of carbon that is generated depends on the type of garbage that is processed. However, this end product can be recycled and used to improve farm lands, for example.

The "WRT-10000 Series" is designed to conserve space and re- duce installation time. By using a stronger deck plate in its design, great reduction in reinforcing ma- terial has been achieved. By making the dust collector slimmer and reducing the size of the collection space, the installation area has been reduced by 30%. This reduction in size can amount to 40% reduction

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Recently Established

Amano Maintenance

Engineering Corporation

In April 1999, Amano separated its environment-related products, system maintenance, and reengineering division to establish a new company, Amano Maintenance Engineering Corporation. It was capitalized at 10 million yen, and is located at the head office of Amano Corporation, in Yokohama. Its main business activities will be comprised of construction, repairs, measurement, periodic inspection, regular statutory inspection, and contract maintenance of standard/system dust collectors, deodorization systems, hazardous gas removal systems, and pneumatic powder conveyance systems. It will also sell equipment, peripherals, parts, and supplies for these systems. It will provide plant and factory maintenance, and sales of environmental management and maintenance suppor t systems, in addition. Contract cleaning services, services related to environmental improvement and maintenance control of factories, and also services related to HACCP management will be provided.

Hiroshima Branch Office,

Complete with a New 6-

story Office Building and

Show Room

A new office building in Hiroshima was completed on the 23rd of April this Year, with business starting on the 26th of April. The new office building is 6-stories high with a total floor space of 2680.8 m². On the second floor, there is a show room in which Amano's new products and systems are demonstrated.

Amano's Highly Acidic

Electrolytic Water System

Receives Certification

from the EPA

Following the pharmaceutical certification from the Ministry of Health

& Welfare in Japan last April, Amano's highly acidic electrolytic water system FW1000M received

"Pesticidal Device" category certification from the US EPA.

*E PA : Environmental Protection Agency FDA : Food & Drug Administration

There are few manufacturers in Ja- pan that have received pharmaceutical certification from the Ministry of Health & Welfare for their highly acidic electrolytic water systems. Additionally, Amano is the first Japa- nese manufacturer to receive certification from the US EPA. Amano is also currently taking steps to ob- tain certification from the US FDA as well. Electrolytically activated in shipping costs. Amano plans to actively promote the sales of this low-cost, resource-conser ving model to ISO 14000 certified businesses, recycling plants, and new factories.

Highly acidic electrolytic water system: EPA certified as a "Pesticidal Device"

water can be used for sanitary purposes in food-related industries, as a measure to stop infections in hos- pitals, as a new method to harvest organic farm products, and for other numerous applications that are being developed daily. Interest is growing rapidly worldwide.

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Promising Prospects:

Amano International

Trading (Shanghai) Co., Ltd.

Amano Inter national Tr ading (Shanghai) Co., Ltd. was established May 25, 1995. The business scope covers a wide range, including sales and maintenance of Amano's time recorders, carpark management systems, and dust collectors in Hong Kong, Taiwan, and Mainland China. In its first 4 years of operations, Amano Shanghai has been devoted to increasing market share, seeking out more distribution channels, and increasing sales volume to earn a good reputation for Amano products in the marketplace.

Recently, Amano Shanghai won the bid for the largest and most important hi-tech project in China, the parking management system of Shanghai Pudong International Air- por t, which will be completed by the end of September 1999.

Amano's Parking Management Sys- tem for this installation is ranked as one of the world's best carpark systems. It consists of two sub-systems, i.e. Fee Collection Management and Taxi Queue-Up Management. The Taxi Queue-UpManagement system will be used to control taxis

with the principle of "First Come, First Served". Fifty-five barrier gates are all controlled automatically by computers. The software for the system uses a Windows NT 4.0 platform, together with SQL Server 6.5 to manage the database, making the system more stable and effective. C&M (Count & Monitor) software and LPIS (License Plate Inventory System) have been developed especially for the stringent requirements of Shanghai Pudong International Airpor t. Moreover, ASPECT, the system's software, has been upgraded, and several new features have been added which greatly improve its capabilities. Thus, network coordination has been vastly improved.

A Better Return on

Information: ATAS' TIS

Division

One of the core business of Amano Time & Air Singapore Pte. Ltd.’s TIS

division is integrating SAP's R/3 Human Resource and Production Planning modules with Amano's data entry terminal. This creates a comprehensive solution for ERP package users. Affiliated companies of Sharp Malaysia have purchased Amano's SAP R/3 module systems. Direct data entry into an ERP package eliminates manual calculation and manual batch input, and yields real-time and accurate date. Many government related businesses in Singapore have adopted Amano's R/3 HR subsystems. Singapore Tech- nology Aviation Services Company Pte. Ltd. and ST Aerospace Limited are managing the attendance of several thousand employees at Paya Lebar Headquarters via a preexist- ing WAN and connecting it with the R/3 HR module. Conglomerates such as Sembawang Shipyard / Sembawang Engineering & Con- struction have also chosen Amano's high-quality & ERP (R/3) subsystem solution. After considerable time researching and evaluating the market, the final decision made by these enterprises is proof that Amano's system provides the highest return on investment. As a result, an increasing number of these customers are adopting Amano’s high-quality system products. Many global enter pr ises such as Daimler Chrysler's Asian Headquarters and Matsushita Kotobuki Peripherals In- donesia have also chosen Amano's systems.

With such successful examples, and we believe that Amano products will play a major role in the high quality Hong Kong, Taiwan, and Mainland China business markets in the near future.

Shanghai Pudong International Airport

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Amano Korea "Goes the

Distance" with Proximity

Card Readers

There has been a tremendous demand for proximity card readers and non-contact card systems in Korea. They are used in public transportation, such as buses and trains, and also in parking systems, as well as in offices for clocking in and out. Amano Korea Corporation jointly developed a proximity reader with a local company, and Amano Korea's Time Information Systems division sold many of these readers to Carrefour Department Stores. This customer expects to expand to 60 stores in the next five years, and fulfilling the needs of growing customers is very important to us.

Amano Time Validation

System (ATVS)

In parking systems, Amano is planning to sell a proximity reader that is able to read cards at a distance of 1 meter, and hopefully 3 meters by July. Research shows that 80% of customers considering new monthly parking systems for their staff are seeking proximity reader systems. This mar ket is showing strong growth, and we are working hard to continue this trend.

TruTime® System Dis-

tributor Plan

Time Pro (Korean Virsion)

ACI developed the TruTime® Sys- tem Distributor Plan to advance the sales of the TruTime® Time & At- tendance software and MTX termi- nals nationwide. In return for their commitment to a set sales target, which is based on the potential business in a given territory, a system distributor is provided the ability to control a territory, thus increasing profit levels and ensuring dedication to the Amano product line. In those major markets where Sys- tem Distributors are not available, Amano's sales strategy is to market the product directly. In taking an

Tru Time^® (English Version)

Amano Cincinnati, Inc.(ACI) developed the Amano Time Validation System to provide Nasdaq^® traders with an electronic time validation system and time stamping device that meets OATS^SM requirements for clock synchronization, Y2K im- print compliance, clock accuracy and printing of seconds. The complete system includes the PIX-3000xN Time Validation Unit and PIX- COMW Time Synchronization Soft- ware for Windows^®95 / NT. This integration the emergence of the ATVS as the leading OATS^SM compliance package available. After a slow start following its introduction, the market was more receptive to the ATVS unit in the last quarter of fiscal year 1998 due to the com- mencement of the trading firms' calendar year. Since then, sales of the system have grown steadily. This strong momentum is expected to continue in fiscal year 1999, with the deadline for compliance with the

OATS^SM rule mandated for July 1, 1999. Sales should not dwindle after the deadline date, however, since many of the member firms have been slow to respond to compliance requirements. Expectations are that as the deadline nears, and well after it passes, the ATVS will continue to post strong results. With the aid of target marketing in several industry-specific publications, interest in the system has grown tre- mendously, and the outlook for continued success is positive.

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New Indonesian Payroll

Software 'AMIPAY'

PT. Amano Indonesia has released AMIPAY (Amano Indonesian Payroll Software). AMIPAY is Windows- based payroll software, which ac- commodates all the necessary func- tions to process payroll according to Indonesian government regulations.

AMIPAY uses Indonesian language for Indonesian user s, and is equipped with government reports such as the Income Tax report and the Social Insurance report as standard features. Along with its pow- erful attendance software, TWL, AMIPAY enables PT. Amano Indo- nesia to offer the Amano Total So- lution, by including Amano's hardware. Despite the economic crisis in Indonesia, we have received substantial inquiries regarding AMIPAY. Indonesian businesses have been waiting for the Amano Total Solu- tion. Our ultimate goal is to be the leading payroll and attendance system provider in Indonesia within the next 2 years.

AMIPAY Payroll software (Indonesian Version)

A Growing Member of

the Amano Family

Six years has passed since the es- tablishment of Amano Cleantech Malaysia Sdn. Bhd. (ACM) in April 1993. This company was initially started with 2 employees of Amano Japan and 2 local staff members. Now, branch offices are situated at Butterworth in the northeast region, and also in Johor in the southern region. ACM has grown to 22 employees, including the 2 Japanese members.

It has established itself as an engineering and sales firm in terms of design, parts procurement, manufacturing, and sales of environmental systems. It has formed strong networks with southeastern Asian countries, supplied technical draw- ings and devices to subcontract factories, and implemented environmental systems in these factories.

Because cost competition is expected to increase in the future, we will remain competitive by buying high quality products at low prices from various locations around the world, finding new manufacturing partners to aid in reducing our costs, and expanding our sales network. In areas other than environmental systems, ACM has established a subsidiary, "ATAS E&C Services" in June of last year to provide cleaning services to factories and offices using Amano's floor cleaning equipment and products. It will also provide management services to parking facilities. ACM has also started a Time Information System division, and has already received many orders from customers in previously existing markets.

Assembly inspection prior to shipment (Model BV)

Large dust collector WRT

aggressive stance toward adequate market coverage, Amano will quickly gain a deeper understanding of US market requirements, which will in turn lead to more effective planning for future product development, superior technical suppor t and increased profits from this growing market segment. Based on the foundation laid in fiscal year 1998, ACI is extremely excited about the prospects for future revenue growth in this technology driven marketplace.

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ATAS Services Makes

Impact in the Singapore

Market with Rapid

Progress in Management

Services

ATAS Services Pte. Ltd. (ATAS Ser- vices), a wholly owned subsidiary of AMANO SINGAPORE, was established in Singapore in late 1997 to offer value-added solutions, which couple Amano products and expertise together.

ATAS Services provides unmatch- able value-added services by offering the following unique "3-in-1 Package" to facility owners and management:

1) Cleaning Contract Services 2) Security Guards Contract Service 3) Car Park Management & Main- tenance Service for Amano Car Park Equipment

ATAS Services successfully provides these building management services through the following "3-in-1" Op- erational Concept in order to be competitive:

1) Amano Labor (People with expertise in Amano product use)

2) Amano Equipment & Products 3) Amano Back-Up Service Staff By offering hassle-free and quality solutions consistently, and by using

our own resources economically and efficiently, our customers ben- efit greatly in reduced cost and labor. We are a total management service provider for facilities owners and management.

As such, ATAS Services is able to add superior value to Amano products and solutions. Fur thermore, such marketing strategy attempts to convert customers into using more Amano products and services, and possibly to use all of Amano solutions eventually.

The provision of cleaning services by ATAS Services in late 1997 is the first outside of Japan for Amano Group.

Since its beginning, it has secured cleaning & security guards service contracts from over 20 customers in over 30 project sites. Our business policies and concepts, and reputation for revolutionary standards of cleanliness have captured the imagination of the following industry leaders such as, Cold Stor- age Supermarkets, Chijmes, HeShe Building, and SmithKline Beecham Pharmaceuticals.

Using Singapore as a case model, we intend to implement the same business concept in other countries.

Chijmes

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AMANO Corporation and Subsidiaries

Financial Section

Financial Highlights ...

12

Consolidated Balance Sheets ...

13

Consolidated Statements of Income ...

15

Consolidated Statements of Cash Flows ...

16

Consolidated Statements of Shareholders’ Equity

17

Notes to the Consolidated Financial Statements ...

18

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Financial Highlights

For the years ended March 31, 1999 and 1998.

Yen in millions and US dollars in thousands, except per share amounts - See Note 4 to the Consolidated Financial Statements.

1999 1998 1999

For the years ended March 31:

Net sales ... ¥56,562 ¥60,099 $467,455 Net income ... 745 2,019 6,157 Per share data:

Net income per share ... ¥7.78 ¥21.08 $0.064 Cash dividends per common share ... 13.00 13.00 0.107 At March 31:

Total assets ... ¥97,121 ¥100,467 $802,653 Working capital ... 45,486 48,043 375,918 Shareholders’ equity ... 77,137 78,308 637,496 Sales by product:

Time management system equipment ... ¥12,040 ¥11,191 $99,504 Time control equipment ... 8,237 9,949 68,074 Parking control system equipment ... 15,674 15,503 129,538 Dust collectors, Industrial cleaners,

Dust collecting systems ... 11,377 13,840 94,025 Floor cleaning equipment ... 9,234 9,616 76,314

Note: US dollar amounts have been translated at the rate of ¥121=US $1, the rate prevailing on March 31, 1999. - See Note 4 to the Consolidated Financial Statements.

0 '95 '96 '97 '98 '99

5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000 60,000 65,000

0 '95 '96 '97 '98 '99

500

0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00

1,000 1,500 2,000 2,500 3,000

'95 '96 '97 '98 '99

Net Sales (Millions of Yen)

Net Income (Millions of Yen)

Net Income Per Share (Yen)

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Consolidated Balance Sheets

As at March 31, 1999 and 1998.

Thousands of US Millions of Yen Dollars (Note 4)

ASSETS 1999 1998 1999

Current assets:

Cash and bank deposits ... ¥13,059 ¥10,688 $107,926 Marketable securities ... 22,187 29,361 183,364 Notes and accounts receivable:

Trade ... 19,465 20,245 160,868 Other ... – 252 –

19,465 20,497 160,868

Less allowance for doubtful accounts ... (224) (224) (1,851)

19,241 20,273 159,017

Inventories ... 5,311 5,901 43,893 Other current assets ... 1,885 389 15,577 Total current assets ... 61,683 66,612 509,777

Investments and advances:

Investment in and advance to affiliates’ ... 2 4 17 Investments in securities ... 4,779 4,684 39,496 Other investments ... 2,871 2,512 23,727

7,652 7,200 63,240

Property, plant and equipment, at cost:

Buildings ... 20,815 19,591 172,025 Machinery and equipment ... 15,258 14,648 126,099

36,073 34,239 298,124

Less accumulated depreciation ... (21,090) (19,863) (174,298)

14,983 14,376 123,826

Land ... 5,807 5,690 47,992 Construction in progress ... 709 1,053 5,860

21,499 21,119 177,678

Fixed leasehold deposits... 1,477 1,385 12,207 Deferred charges and other assets... 3,653 3,512 30,190

Foreign currency translation adjustments... 1,157 639 9,561

¥97,121 ¥100,467 $802,653 The accompanying notes are an integral part of these statements.

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LIABILITIES AND SHAREHOLDERS’ EQUITY 1999 1998 1999

Current liabilities:

Short-term bank loans ... ¥1,530 ¥1,415 $12,645 Trade notes and accounts payable ... 8,570 9,560 70,826 Accrued expenses ... 1,503 3,229 12,421 Accrued income taxes ... 84 1,918 694 Other current liabilities ... 4,510 2,447 37,273 Total current liabilities ... 16,197 18,569 133,859

Long-term liabilities:

Accrued retirement benefits to employees ... 2,479 2,347 20,488 Accrued retirement benefits to directors and corporate auditors .. 791 771 6,537 Other ... 181 240 1,496

3,451 3,358 28,521

Minority interests in consolidated subsidiaries... 336 232 2,777

Shareholders’ equity:

Common stock, ¥50 ($0.41) par value: Authorized- 199,400,000 shares Issued and outstanding:

March 31, 1999 - 95, 181, 829 shares ... 18,240 – 150,744 March 31, 1998 - 95, 781, 829 shares ... – 18,240 – Additional paid-in capital ... 19,293 19,293 159,446 Retained earnings ... 39,627 40,779 327,496 ... 77,160 78,312 637,686 Treasury stock at cost, 21,389 shares in 1999

and 3,324 shares in 1998 ... (23) (4) (190)

77,137 78,308 637,496

¥97,121 ¥100,467 $802,653 The accompanying notes are an integral part of these statements.

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Consolidated Statements of Income

1999 1998 1999

Net sales ... ¥56,562 ¥60,099 $467,455 Cost of sales... 30,982 32,001 256,050 Gross profit ... 25,580 28,098 211,405 Selling, general and administrative expenses ... 20,789 20,310 171,810 Operating income ... 4,791 7,788 39,595 Other income (expenses) :

Interest and dividend income ... 989 955 8,174 Equity in earnings of affiliates ... 3 2 25 Interest expense... (188) (189) (1,554) Amortization of research and development cost ... (1,625) (1,231) (13,430)

Gain on sales of property and equipment ... 4 2 33

Loss on disposal of property and equipment ... (32) (107) (264) Loss on sales of securities ... (2,815) – (23,264) Loss on write-down of marketable securities ... (170) (1,449) (1,405) Other, net ... (178) 24 (1,472) Income before income taxes and minority interests 779 5,795 6,438 Income taxes... 134 3,821 1,107 Minority interests in earnings of consolidated subsidiaries . 100 45 826 Net income ... ¥745 ¥2,019 $6,157

Yen US Dollars (Note 4)

Net income per share, basic... ¥7.78 ¥21.08 $0.064 Cash dividends per common share ... 13.00 13.00 0.107 The accompanying notes are an integral part of these statements.

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Consolidated Statements of Cash Flows

1999 1998 1999

Cash Flows from Operating Activities:

Net income ... ¥745 ¥2,019 $6,157 Adjustments to reconcile net income to

net cash provided by operating activities:

Depreciation and amortization ... 3,490 2,966 28,843 Minority interests ... ... 100 (45) 826 Provision for accrued retirement benefits ... 152 53 1,256 Equity in earnings of affiliates ... (3) (2) (25) Loss on valuation of investments in securities ... 170 1,247 1,405 Loss on disposal of property, plant and equipment ... 28 104 231 Changes in assets and liabilities:

(Increase) in receivables ... (463) (793) (3,826) Decrease (increase) in inventories ... 591 (352) 4,884 Decrease in current assets ... 2 946 17 (Decrease) increase in payables ... (991) 1,093 (8,190) (Increase) in accrued income taxes ... (1,834) (399) (15,157) Increase in current liabilities ... 339 865 2,802 Other, net ... (568) 100 (4,694) Net cash provided by operating activities ... 1,758 7,802 14,529 Cash Flows from Investing Activities:

Payment for purchases of property and equipment ... (2,408) (2,747) (19,901) Decrease (increase) in investments in securities ... 78 (925) 644 (Increase) in investments in other investments ... (360) (437) (2,975) Proceeds from sales of property and equipment ... 204 (134) 1,686 Transfer of investments in securities

to cash equivalents ... (341) – (2,818) (Increase) in fixed leasehold deposits ... (92) (136) (760) (Increase) in intangibles ... (1,835) (1,488) (15,165) Net cash used in investing activities ... (4,754) (5,867) (39,289) Cash Flows from Financing Activities:

Increase (decrease) in short-term bank loans ... 115 (12) 950 (Decrease) in other long-term debt ... (83) (113) (686) Dividends paid ... (1,245) (1,245) (10,289) Acquisition of own shares ... (594) – (4,909) Net cash used in financing activities ... (1,807) (1,370) (14,934) Cash and cash equivalents at beginning of year ... 40,049 39,484 330,984 Cash and cash equivalents at year-end ... ¥35,246 ¥40,049 $291,290

(19)

Millions of Yen Additional

Common Paid-In Retained

(Number of Shares of Common Stock - Thousands) Stock Capital Earnings

Balance at March 31, 1997 (95, 782)... ¥18,240 ¥19,293 ¥40,082 Net income for the year ... – – 2,019 Cash dividends ... – – (1,245)

Directors’ and corporate auditors’ bonuses ... – – (77)

Increase due to increase of

consolidated subsidiaries ... – – 0 Balance at March 31, 1998 (95, 782)... ¥18,240 ¥19,293 ¥40,779 Net income for the year ... – – 745 Cash dividends ... – – (1,245)

Retirement of treasury stock (600) ... – – (594) Increase due to increase of

consolidated subsidiaries ... – – 0 Balance at March 31, 1999 (95, 182)... ¥18,240 ¥19,293 ¥39,627

Thousands of US Dollars (Note 4) Additional

Common Paid-In Retained

Stock Capital Earnings

Balance at March 31, 1998... $150,774 $159,446 $337,017 Net income for the year ... – – 6,157 Cash dividends ... – – (10,289)

Retirement of treasury stock (600) ... – – (4,909) Increase due to increase of

consolidated subsidiaries ... – – 0 Balance at March 31, 1999... $150,744 $159,446 $327,496 The accompanying notes are an integral part of these statements.

Consolidated Statements of Shareholders’ Equity

(20)

Notes to the Consolidated Financial Statements

2. Principles of Consolidation

(1) Scope of Consolidation The Company had 24 subsidiaries at March 31, 1999 (22 at March 31, 1998). The consolidated financial statements for the years ended March 31, 1998 and 1999 include the accounts of the Company and all majority owned subsidiaries 1. Basis of Consolidated

Financial Statements

The consolidated financial statements of AMANO Corporation ("the Company") and its subsidiaries (majority-owned companies) have been prepared in accordance with the accounting standards for consolidated financial statements in Japan. The accounts of the Com- pany included in the consolidation are based on the accounting records maintained in accordance with the provisions of the Japanese Com- mercial Code and accounting principles generally accepted in Japan,which are diffenent in certain respects as to application and disclosure requirements of Interna- tional Accounting Standards. The consolidated statements of cash flows are not required under the Law and its regulations. However, they are presented herein.

The accounts of consolidated overseas subsidiaries, as shown below, are based on audited financial statements prepared in conformity with accounting practices prevailing in the country of incorporation. In general, no adjustments to the accounts of overseas consolidated subsidiaries have been reflected in the accompanying consolidated financial statements.

The accompanying consolidated financial statements of the Company and its consolidated subsidiaries are essentially the translation of

statements in the Securities Annual Report filed with the Ministry of Fi- nance and the Tokyo and Osaka Stock Exchanges, as required by the provisions of the Securities and Ex- change Law and related regulations in Japan.

The information in the consolidated financial statements is de- rived from the original text, scope, and nature of that information, and is therefore limited to that con- tained in the original text. How- ever, certain reclassifications or summarizations of accounts have been made to present the consolidated financial statements in a form which is more familiar to readers outside Japan.

The consolidated finacial statements are not intended to present the consolidated financial position, results of operations and cash flows in accordance with accounting principles and practices generally accepted in countries and jurisdic- tions other than Japan.

(collectively referred to as "the Companies").

The accounts of Amano Interna- tional Trading (Shanghai) Co., Ltd. are prepared on the basis of a De- cember 31 fiscal year-end, and are consolidated accordingly with the Company at March 31, 1999 and 1998 and for the years then ended. The consolidated subsidiaries that have been consolidated with the Company for the year ended March 31, 1999 are as follws:

(21)

(2) Investments in Affiliates The Company had three affiliates and one affiliate at March 31, 1998 and 1999, respectively, and applied the equity method to the investment in its three affiliates and one affiliate for the years ended March 31, 1998 and 1999, respectively. Affiliate Company as of March 31, 1999 is Amano Agency Corp. The Company acquired majority ownership of ATAS Services Pte. Ltd., which was formerly affiliated company, and therefore now included in consolidation. The Company’s investment in Amano Blick International (Europe), Ltd. was sold, and it is therefore no longer an affiliate.

(3) Consolidation and Elimination For the purpose of preparing the consolidated financial statements, all significant intercompany trans- actions, account balances, and un- realized profits among the Compa- nies have been eliminated from the consolidated financial statements. Intracompany profit included in the assets sold from the Company to the consolidated subsidiaries has been entirely eliminated and charged against the consolidated earnings of the Companies. Intra- company profit included in the assets sold from the consolidated subsidiaries to the Company has been entirely eliminated and the portion applicable to minority interests has been charged against minority in-

terests. For the elimination of investments in a consolidated subsidiary, (Pioneer Eclipse Corp., USA), significant differences be- tween such acquisition costs and the amounts of underlying equity in net assets of the subsidiary at the time of acquisition are amortized over a period of 40 years on a straight-line basis. Other consolidation differences are directly charged or credited to income for the year, since such differences had no ma- terial effect on the consolidated result of operations, nor on the financial position at March 31.

3. Summary of Significant Accounting Policies

(1) Cash and Cash Equivalents Cash and cash equivalents include time deposits and marketable securities for the purposes of statements of cash flows.

(2) Inventories

Inventories are stated at cost. Cost is determined principally using the periodic average method.

(3) Property, Plant and Equipment Property, plant and equipment are stated at cost, less accumulated depreciation. Depreciation is computed on the declining balance method, except for buildings acquired from April 1, 1998, at rates based on the estimated useful lives prescribed by Japanese income tax

Amano USA, Inc.

100% US$ 55,623 Amano Cincinnati Inc.

100% US$ 29,493 Amano Cincinnati Canada Inc.

100% C$ 430

Pioneer Eclipse Corp.

100% US$ 4,606 Amano Pioneer Credit Corp.

(d.b.a. Amano Business Credit)

84% US$ 135

Accutime Corp. 100% US$ 750 Amano Electronics

Europe NV 100% BEF 483,574 Amano Deutschland,

GmbH 100% DM 500

Amano Asia Management Pte. Ltd.(*1)

100% $S 120

ATAS E&C Services (M) Sdn. Bhd.(*1)

70% MR150

ATAS Services Pte. Ltd.(*1)

89% $S 250

Amano Cleantech

Malaysia Sdn. Bhd. 60% MR 200 PT. Amano

Indonesia 100%IDR 1,928,000 Amano Time & Air

Singapore Pte. Ltd. 100% S$ 700 Amano International Trading

(Shanghai) Co., Ltd.100% US$ 200 Amano Korea Corp.100% W 2,010,000 Amano Blick

International, Inc. 50% US$ 9,086 Trutrac, Inc. 50% US$ 3,112 A ma n o B l ick In te rn a t i ona l (N o rt h

America), Inc. 50% C$ 0.1

Advanced Business Integration Singapore Pte. Ltd. 50% S$ 160 Amano System Solution Corp.

98% ¥20,000

Environmental Technology Company

100% ¥10.000

Amano Management Service Corp.

100% ¥10,000

Amano Handy Aid Corp.

100% ¥10,000

(*1) These subsidiaries were newly consolidated as of March 31,

1999.

Note:Amano Europe Investments Ltd. was liquidated this year.

Company Name Paid In Capital (Thousands) Equity

ownership

%

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(4) Deferred charges and other assets

Intangible assets are amortized using the straight-line method over a period of 5 year. Goodwill arising from the acquisition of a subsidiary in the USA is amortized over a 40 year period on a straight-line basis.

Research and development costs are deferred and amortized on a straight-line basis over a period of two years.

(5) Marketable Securities and Investments in Securities Marketable securities (current) and investments in securities (non-current) are valued at cost, which is determined by the moving average method.

(6) Foreign Currency Translation Current monetary assets and current monetary liabilities denominated in foreign currencies held by the Company are translated into Japanese yen at the rate of exchange prevailing at the balance sheet date. The resulting translation gains or losses are charged or credited to income. Long-term monetary assets and liabilities denominated in foreign currencies, including investments in unconsoli- dated subsidiaries, are principally translated at the rate of exchange prevailing when such translations were made.

(7) Translation of Foreign Currency Financial Statements (Accounts of Overseas Subsidiaries) Foreign currency denominated statements of overseas consolidated subsidiaries have been translated into Japanese yen using the method prescribed by the Business Ac- counting Deliberation Council of Japan. All items are translated at the rate of exchange prevailing at the balance sheet date, except common stock and additional paid in capital, which are translated at his- torical exchange rates. Differences arising from translation are presented as "Foreign currency translation adjustment" in the accompanying consolidated financial statements.

(8) Income Taxes

Income taxes are provided for on the basis of the amount required by the tax returns for the fiscal year. No deferred tax effect is recorded for temporary differences in the rec- ognition of certain expenses be- tween tax and financial reporting. Howerer, such deferred income taxes are rewarded for overseas consolidated subsidiaries due to a common practice in the subsidiaries' countries.

(9)Appropriation of Retained Earnings

Under the Japanese Commercial Code and the Articles of Incorpo- ration of the Company, the plan for laws. The effect of this change

decreased depreciation expense by

¥21 million ($174 thousand), and to increase both operating income and income before income taxes by the same amount. Depreciation of the buildings acquired from April 1, 1998 is computed on the straight- line method according to the recent amendments of the Japanese corporate tax laws, effective April 1,1998. The Company adopts useful lives for buildings, which are shorter than those used in previous years, pursuant to the amendments of the Japanese corporate tax laws, effective April 1998. As a result of the change in useful lives for buildings, the depreciation cost for the year ended March 31, 1999 was increased by ¥59 million ($488 thousand). Operating income and income before income taxes were increased respectively by the same amount compared with the case on which the previous method was adopted. The range of the useful lives of assets is:

Buildings 3-65 years

Machinery and equipment 3-16 years Cost of property, plant and equipment, retired or otherwise disposed of, and related accumulated depreciation, is eliminated from the respective accounts, and the resulting gain or loss is reflected in income during the applicable period. Normal repairs and maintenance, including minor renewals and im- provements, are charged to income as incurred.

(23)

the appropriation of retained earnings (primarily cash dividend payments) proposed by the Board of Directors is subject to approval at the annual shareholders' meeting, which must be held within three months after the end of each fiscal year. The appropriation of retained earnings reflected in the accompanying consolidated financial statements represents the results of appropriations applicable to the im- mediately preceding financial year, which was approved at the shareholders' meeting and disposed of during that year. Dividends are paid to shareholders listed on the shareholders' register at the end of each fiscal year. As is customary practice in Japan, bonuses are paid to directors and corporate auditors out of retained earnings, instead of being charged to income for the year, which constitutes a part of the appropriation cited above.

(10) Provision for Accrued Expenses

(a) "Allowance for doubtful accounts" is provided in amounts equivalent to the maximum amount allowed for deduction by tax laws, in addition to the individual account balances individually deemed uncollectable.

(b) "Accrued retirement benefits to employees" represents the liability for which the Company has provided to the amount which would be required to pay if all eligible employees voluntarily terminated their

employment at the respective balance sheet dates, less related benefits provided by the pension plan. Under the current retirement ben- efit program, the Company also has a funded pension plan which covers a portion of retirement benefits payable to employees. As of March 31, 1999, past service costs amounted to ¥309 million and are being amortized over a five-year period. The Company also provides for the accrual of lump-sum retirement benefits payable to directors and corporate auditors upon retirement in an amount equivalent to 100% of the liability. (11) Subsequent Events Appropriations of the Company’s retained earnings in respect to the year ended March 31, 1999, which was proposed by the Board of Di- rectors and approved at the shareholders’meeting held on June 29, 1999, was totaled ¥680 million mainly for dividends. Such appropriations have not been segregated from retained earnings in the accompanying consolidated statements.

(12) Net Income and Divi- dends per Share

Basic net income per share is com- putes based on the weighted average number of shares of common stock outstanding during each period. Diluted net income per share is not presented since no bonds with warrants and convertible

bonds are issued. Cash dividends per share shown for each fiscal period in the accompanying consolidated statements of income represent actual dividends declared as applicable to the respective fiscal period.

(13) Reclassifications

Certain reclassifiscations of previously reported amounts have been made to the consolidated balance sheets at March 31, 1998, the consolidated statements of income and the consolidated statements of shareholders’ equity for the year then ended to conform to the current year presentation. Such reclassifications have no effect on net assets and net income.

4. United States Dollar Amounts

The Company maintains its accounting records in Japanese yen. The US dollar amounts included in the consolidated financial statements and notes thereto represent the arithmetical results of translat- ing Japanese yen to US dollars at a rate of ¥121=US$1, the approxi- mate effective rate of exchange prevailing on March 31,1999. The in- clusion of US dollar amounts is solely for the convenience of readers outside Japan and is not intended to imply that yen amounts could be converted, realized, or settled in US dollars at that, or any other rate.

(24)

5. Selling, general, and administrative expenses

Selling, general, and administrative expenses during the years ended March 31, 1999 and 1998 include principally:

7. Leases Commitments

Finance lease contracts other than those which are deemed to transfer the ownership of the leased assets are accounted for by the method that is applicable to ordinary operating leases.

Minimum feature lease payments under finance leases, which includes the imputed interest expense portion’ are summarized as follows:

6. Provisions

Provisions charged to operation during the years ended March 31, 1999 and 1998 are mainly as follows:

Lease rental payments on finance lease contracts without transfer of ownership for the years ended March 31, 1998 and 1999 were ¥337 and ¥384 ($3,173), respectively.

Acquisition cost, accumulated depreciation, net book value at March 31, 1998, and depreciation expenses for the year ended March 31, 1999, if capitalized, are summarized as follows:

Depreciation is calculated based on the straight-line method over the lease term of the leased assets.

Thousands of US Dollars (Note 4)

$17,876 7,694 10,182

$3,174 Millions of Yen

¥2,163 931 1,232

¥384 Acquisition cost

Accumulated depreciation Net book value

Depreciation

Due within one year Due over one year Total

Thousands of US Dollars (Note 4) 1999

$3,323 6,851

$10,174 Millions of Yen

1999 1998

¥402 ¥314

829 797

¥1,231 ¥1,111

Millions of Yen

1999 1998

SGA SGA COS

¥972 ¥1,013 ¥618

286 280 107

349 81 –

SGA

$8,033 2,364 2,884 Employees' Bonuses

Retirement Benefits Doubtful Accounts

Millions of Yen

1999 1998

¥10,246 ¥9,198

1,444 1,348

1,034 968

$84,678 11,934 8,545 Labor and Payroll

Rental for Properties Travel and Transportation

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8. Segment Information

(1) Industry Segments

The Companies operate primarily in the following two businesses: 1. Office equipment

2. Industrial machines

Thousands of US Dollars (Note 4) 1999

Office Industrial Total Consolidation Consolid. Total Net Sales:

Customers $297,116 $170,339 $467,455 – $467,455

Intersegment 19,777 4,587 24,364 $(24,364) –

Total 316,893 174,926 491,819 (24,364) 467,455

Operating Expenses 272,463 161,389 433,852 (5,992) 427,860

Operating Income $44,430 $13,537 $57,967 $(18,372) $39,595

Assets: $260,876 $92,471 $353,347 $449,306 $802,653

Depreciation: 6,818 4,603 11,421 3,422 14,843

Capital expenditures: 13,777 8,298 22,075 959 23,034

Millions of Yen 1998

Customers ¥36,643 ¥23,456 ¥60,099 – ¥60,099

Intersegment 3,090 730 3,820 ¥(3,820) –

Total 39,733 24,186 63,919 (3,820) 60,099

Operating Expenses 34,116 20,861 54,977 (2,666) 52,311

Operating Income ¥5,617 ¥3,325 ¥8,942 ¥(1,154) ¥7,788

Assets: ¥31,031 ¥12,075 ¥43,106 ¥57,361 ¥100,467

Depreciation: 830 502 1,332 365 1,697

Capital expenditures: 1,031 290 1,321 746 2,067

Millions of Yen 1999

Customers ¥35,951 ¥20,611 ¥56,562 – ¥56,562

Intersegment 2,393 555 2,948 ¥(2,948) –

Total 38,344 21,166 59,510 (2,948) 56,562

Operating Expenses 32,968 19,528 52,496 (725) 51,771

Operating Income ¥5,376 ¥1,638 ¥7,014 ¥(2,223) ¥4,791

Assets: ¥31,566 ¥11,189 ¥42,755 ¥54,366 ¥97,121

Depreciation: 825 557 1,382 414 1,796

Capital expenditures: 1,667 1,004 2,671 116 2,787

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(2) Geographic Segments

Information by geographic areas based on location for the years ended and as of March 31, 1999 and 1998, is summarized as follows:

Millions of Yen 1999

Domestic Overseas

Total Consolidation Consolid. Total (in Japan) Asia North America Europe

Net Sales:

Customers ¥44,562 ¥965 ¥9,636 ¥1,399 ¥56,562 – ¥56,562

Intersegment 2,292 83 558 15 2,948 ¥(2,948) –

Total 46,854 1,048 10,194 1,414 59,510 (2,948) 56,562

Operating Expenses 40,337 970 9,696 1,493 52,496 (725) 51,771

Operating Income ¥6,517 ¥78 ¥498 ¥(79) ¥7,014 ¥(2,223) ¥4,791

Assets: ¥30,876 ¥929 ¥8,890 ¥2,060 ¥42,755 ¥54,366 ¥97,121

Millions of Yen 1998

Domestic Overseas

Net Sales:

Customers ¥47,722 ¥1,430 ¥9,441 ¥1,506 ¥60,099 – ¥60,099

Intersegment 3,086 142 582 10 3,820 ¥(3,820) –

Total 50,808 1,572 10,023 1,516 63,919 (3,820) 60,099

Operating Expenses 41,988 1,466 9,882 1,641 54,977 (2,666) 52,311

Operating Income ¥8,820 ¥106 ¥141 ¥(125) ¥8,942 ¥(1,154) ¥7,788

Assets: ¥31,968 ¥956 ¥8,514 ¥1,668 ¥43,106 ¥57,361 ¥100,467

Thousands of US Dollars (Note 4) 1999

Domestic Overseas

Net Sales:

Customers $368,281 $7,975 $79,637 $11,562 $467,455 – $467,455

Intersegment 18,942 686 4,612 124 24,364 $(24,364) –

Total 387,223 8,661 84,249 11,686 491,819 (24,364) 467,455

Operating Expenses 333,364 8,017 80,132 12,339 433,852 (5,992) 427,860

Operating Income $53,859 $644 $4,117 $(653) $57,967 $(18,372) $39,595

Assets: $255,173 $7,678 $73,471 $17,025 $353,347 $449,306 $802,653

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(3) Overseas and Export Sales

Overseas sales for the Companies for the years ended March 31, 1999 and 1998 are summarized as follows:

Export sales and sales by overseas subsidiaries

Asia

North America Europe

Others Total

Percetage of overseas and export sales to consolidated net sales

Millions of Yen

1999 1998

¥2,033 ¥2,510

9,647 9,448

1,457 1,530

356 310

¥13,493 ¥13,798

23.9% 23.0%

$16,802 79,727 12,041 2,942

$111,512

23.9%

9. Per Share Data

Net assets and income, listed per share as of and for the years ended March 31, 1999 and 1998:

Per share: Net Assets Net Income: Basic

Overseas and export sales represents the total amount of export sales of the Company and domestic subsidiaries’ and sales of the overseas subsidiaries.

Yen

1999 1998

¥810.42 ¥817.56

7.78 21.08

US Dollars (Note 4) 1999

$6.698 0.064

(28)

275 MAMEDO, KOHOKU, YOKOHAMA,KANAGAWA, JAPAN 222-8558

PHONE : +81 (45) 439-1508 FAX : +81 (45) 439-1151

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