F INANCIAL
REPORT
April 2015 - March 2016
1. Basic Management Policy
Throughout its history, Amano has adhered to a basic policy of putting the customer
first. This has meant paying heed to what its customers say—based on its corporate
themes of “people and time” and “people and the environment”—and giving pivotal
importance to customer satisfaction throughout its business activities, particularly in
sales, production, and development.
In accordance with this fundamental policy, Amano continues to undertake business
activities with the goal of earning the trust and high regard of all those who support it:
the customers, employees, shareholders, suppliers and other entities with which it does
business, and the local community. It achieves this by providing a variety of products,
systems, services, and solutions that match the needs of its customers in relation to the
themes of “people and time” and “people and the environment.”
Amano and its Group companies direct their efforts toward maximizing corporate 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 all of its Group companies continue to pursue the Group’s tradition of con-
tinuing to evolve in response to the changes of the times, while remaining committed
to the following four immutable strategies of the Amano Group.
(i) Emphasis on the Time & Ecology business fields and enhancement of our core business
(ii) Being a niche leader in the business fields in which we excel
(iii) Ceaseless restructuring
(iv) Management based on cash flow
In accordance with these four fundamental strategies, Amano launched a new medi-
um-term business plan. An outline of the plan is set out below.
[1] Basic Policies
Under its new medium-term business plan, aiming to become a 100-year Company,
the Group will work to address the following four priority challenges with “Challenge
Ourselves to Advance to a New Stage” as its management concept:
(i) Expansion of business: Increase sales and achieve an operating profit ratio of 10%
(ii) Improvement in management efficiency: Increase earnings capacity aiming to
achieve an ROE (return on equity) of 10%
(iii) Reinforcement of consolidated business management: Increase the ratio of con-
solidated operating profit to non-consolidated operating profit by 10% by grow-
ing group companies based in Japan and abroad (*)
(iv) Evolution of corporate governance: Enhance the environment for internal con-
trols for the entire Amano Group
(*) Starting from the fiscal year ending March 31, 2017, the ratio of consolidated net sales to non-consolidated net sales will be replaced with the ratio of consolidated operating profit to non-consolidated operating profit.
Under these basic policies, the Company will carry out the following measures.
Management Policy
1. North American and European markets
North America: In the Parking Systems business, we will further expand business by
stepping up sales of Amano McGann’s new systems and by improving our ability to
propose solutions through enhancement of peripheral services. In the Information Sys-
tem business, we will strive to expand operations by increasing sales of a new series
of devices by Accu-Time Systems Inc. in North America and by developing cloud ser-
vices. In the Clean Systems business, we will strengthen the business foundation and
scale up operations of the wooden floor sanding equipment division of Amano Pioneer
Eclipse Corp. In the Environmental Systems business, we will boost sales of standard
equipment to Japanese companies operating outside Japan, centering on automobile-
related businesses.
Europe: In the Information Systems business, we will continue to enhance Horoquartz’s
French customer base and will strive to permeate and expand the markets in Belgium
and Germany. In the Parking Systems business, we will strive to expand operations by
accelerating the deployment of bar code system products and newly providing com-
missioned parking lot management service.
2. Asian, Latin American and other emerging markets
In the Asian region, we will aim to expand Parking Systems operations by acquiring new
customers in the low-end market segment and bolstering commissioned parking lot man-
agement services. In the Environmental Systems business, we will strengthen our engineer-
ing capabilities as well as sales and service systems for Japanese companies operating in
Asia by making use of the ties between our Group companies across Asia and our head
office in Japan. We will also expand our local production capabilities in order to enhance
cost competitiveness.
In Central and South America, we will continue to develop markets for the Information Sys-
tems, Parking Systems, and Environment System businesses by setting up a local subsidiary
in Mexico with a view to expanding operations in these regions in the future.
3. Japanese market
Japan: We will reinforce ties among Group companies and strengthen our capacity
to provide holistic solutions (which cover hardware, software, and services) across all
business fields both qualitatively and quantitatively. We will also increase our stable of
customers by locking in existing customers as well as our flow of customers by acquir-
ing new customers.
[2] Numerical targets
We are aiming to achieve ¥122.0 billion in net sales and ¥13.0 billion in operating
profit for the fiscal year ending March 31, 2017, which is the final year of the plan.
Numerical targets
(Millions of yen)FY 2014
(ending March 2015)
Results
FY 2015
(ending March 2016)
Amendment
FY 2016
(ending March 2017)
Amount YoY (%) Amount YoY (%) Amount YoY (%)
Net sales 109,837 7.5% 119,506 8.8% 122,000 2.1%
Operating profit 9,357 6.0% 12,942 38.3% 13,000 0.4%
Operating profit ratio (%) 8.5% – 10.8% – 10.7% –
Ordinary profit 10,189 8.1% 13,665 34.1% 13,500 (1.2%)
Izumi NAKAJIMA
President
Representative Director
3. Basic Policy on Distribution of Profits and Payment of Dividends for
This Fiscal Year and the Next
Amano places great importance on its policy for the payment of dividends to sharehold-
ers. Fundamental to this is its policy for the return of profit to shareholders, based on
maintaining a stable ordinary dividend of ¥26 annually (interim dividend of ¥13 and
year-end dividend of ¥13), together with appropriate results-based distributions of profits
and flexible purchasing of treasury stock. The Company aims to maintain a payout ratio
of at least 40% 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 ¥28 per share, an increase of ¥5 per share compared with the
amount paid at the end of the previous year. As a result, the annual per-share dividend
will be ¥48 (including the ¥20 per share paid as the interim dividend). This corresponds
to a dividend payout ratio of 43.7% and a 3.9% ratio of dividends to net assets on a con-
solidated basis.
With regard to the dividend for the next fiscal year, in line with our Basic Policy on Dis-
tribution of Profits and in view of our Outlook for Fiscal Year Ending March 31, 2017, we
aim to pay an annual per-share dividend of ¥46 (with an interim dividend of ¥23 and a
year-end dividend of ¥23).
Retained earnings will be earmarked to fund effective investment aimed at the fundamen-
tal enhancement of the Company’s capacity to conduct its business operations. This will
include the expansion and strengthening of existing business fields, strategic investment
in growth fields, and spending on research and development, as well as the rationaliza-
tion of production plants 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, 2016
During the iscal year under review,
although overseas economies re-
mained unstable due to the slow-
downs in emerging market econo-
mies and fluctuations in the price
of crude oil, the Japanese economy
appeared to be on a irm footing as
corporate proits and conditions in
the jobs market improved steadily,
thanks partly to the weak yen, while
capital investment continued to be
robust.
Amid this business environment, the
Amano Group worked on global
marketing and product deployment
as well as the enhancement of its
capacity to provide holistic solutions,
based on its new medium-term
business plan launched in April 2014.
Under this plan, the Group set forth
the management concept of “Chal-
lenge to a New Stage,” a concept
aimed at making the organization
a “100-year company.” The Amano
Group also concentrated on thor-
oughly uncovering customer needs
and strove to reduce the costs of
goods sold (COGS) and selling,
general, and administrative (SG&A)
expenses.
As a result of the above, during the
fiscal year under review, the Com-
pany recorded sales of ¥119,506
million, up by 8.8% year-on-year. Op-
erating proit increased by 38.3% to
¥12,942 million, ordinary proit went
up by 34.1% to ¥13,665 million, and
net income, which is attributable to
parent company shareholders, in-
creased by 23.7% to ¥8,405 million,
resulting in increases in both income
and proit.
The following is a breakdown of
sales by business division.
Sales by business division
(Unit: Millions of yen)Category
FY2014 FY2015
Change
(April 1, 2014–March 31, 2015) (April 1, 2015–March 31, 2016)
Amount Ratio (%) Amount Ratio (%) Amount %
Time Information System business:
Information Systems 23,558 21.5 25,512 21.3 1,953 8.3
Time Management Products 4,100 3.7 4,165 3.5 64 1.6
Parking Systems 51,817 47.2 55,784 46.7 3,966 7.7
Subtotal 79,477 72.4 85,462 71.5 5,984 7.5
Environment System business:
Environmental Systems 20,639 18.8 21,830 18.3 1,190 5.8
Clean Systems 9,720 8.8 12,213 10.2 2,493 25.6
Subtotal 30,360 27.6 34,044 28.5 3,683 12.1
Total 109,837 100.0 119,506 100.0 9,668 8.8
Time Information System business
• Information Systems:
Time & attendance (T&A), payroll,
human-resource management, access
control, and cafeteria systems
• Time Management Products:
Time recorders and time stamps
• Parking Systems:
Parking and bicycle-parking space
management systems, and com-
missioned parking lot manage-
ment service
Information Systems
This business division, against the
backdrop of improved corporate
performance domestically, saw a
growing trend of investment in in-
formation systems in relation to the
Social Security & Tax Number (“My
Number”) system and measures to
prevent leaks of personal informa-
tion.
In response to these market condi-
tions, the Company added access
control and security to the list of its
“3-in-1” proposal comprising time
& attendance (T&A), payroll, and
human-resource management, thus
striving to bolster its activities to
provide total solutions from system
ownership to system use.
Domestic sales for the current term
were as follows. Terminal device
sales increased by ¥633 million
(10.0%) year-on-year and software
sales increased by ¥159 million
(4.5%). The increase in terminal de-
vice sales was a result of multiple or-
ders for large replacement projects,
while the higher software sales was
attributable to the increased orders
of T&A systems for the small- and
medium-sized enterprise markets.
Overall overseas sales increased by
¥713 million year-on-year (7.9%) as
the sales of Accu-Time Systems Inc.
in North America increased while
the sales of Horosmart S.A. in Eu-
rope decreased due to the disposal
of a group company.
As a result of the above, sales in this
business division totaled ¥25,512
million, representing an increase of
8.3% year-on-year.
Time Management Products
This business division continues
to cope with the current trend
toward lower prices as well as the
need for improved functions, al-
though there is a constant demand
for standard machines.
In this market environment, the
Company has been working on ex-
panding its customer base through
the “User-club” (a fee-based
service for members), as well as
concentrating on expanding sales
of time recorders equipped with
aggregation software compatible
with PCs, which offers improved
usability and functionality.
Domestic sales of standard ma-
chines for the current term de-
creased by ¥31 million year-on-
year (2.5%), and domestic sales
of supply goods increased by ¥85
million (10.5%). Overall overseas
sales increased by ¥15 million
(1.2%) as sales in North America
rose, par tly due to foreign-ex-
change effects.
As a result of the above, sales
in this business division totaled
¥4,165 million, representing an in-
crease of 1.6% year-on-year.
Parking Systems
To respond to the increasingly di-
verse needs of parking lot manage-
ment in Japan, the Parking Systems
business division has been working
on improving the efficiency and
reducing the cost of parking lot
management, increasing the level of
convenience for parking lot users,
and ensuring safety and security in
parking lots.
In response to these market con-
ditions, the Company fur ther
strengthened its cooperation with
major parking lot management irms
and, at the same time, concentrated
on offering various services to small
to medium-sized parking lot man-
agement firms through its parking
lot data centers. The Company also
worked to improve the functionality
and usability of its system equip-
ment and made efforts to expand
into new markets, such as bicycle
parking systems, security-gate sys-
tems and toll road systems, as well
as making new proposals for parking
lot management in cooperation with
a domestic Group company.
Domestic parking equipment sales
decreased by ¥679 million (3.7%).
Domestic revenue from main-
tenance contracts and supplies
services increased by ¥366 million
(4.0%). The commissioned parking
lot management business of Group
subsidiary Amano Management Ser-
vice Corporation has been steadily
expanding, and the number of park-
ing spaces under management in-
creased by 31,500 (10.1%) from the
end of the previous iscal year.
Overall overseas sales increased
by ¥3,592 million year-on-year
(23.4%). Sales for Amano McGann,
Inc. in North America rose due to
the increased orders of new sys-
tems, sales in Europe increased due
to the strong performance of bar
code systems, and sales in the Asian
region increased as sales in Korea
and Hong Kong grew alongside
the steady expansion in the com-
missioned parking lot management
business.
As a net result of the above, the
Parking Systems business division
provided sales totaling ¥55,784 mil-
lion, up by 7.7% year-on-year.
Environment System business
• Environmental Systems:
Standard dust collectors, large
dust collection systems, pneumatic
powder conveyance systems, high-
temperature hazardous-gas re-
moval systems, and deodorization
systems
• Clean Systems:
Cleaning equipment, dry-care
cleaning systems, cleaning man-
agement services, and electrolytic
water generators
Environmental Systems
For this business division, capital in-
vestment by Japanese companies re-
mained irm domestically and strong
aboard.
In this market environment, the
Company focused on capturing
demand for its standard equipment
by strengthening proposals in Japan,
while seeking to win increased or-
ders from customers in the phar-
maceutical, foods, and cosmetics
markets. Meanwhile, with the aim
of attracting demand from Japanese
companies operating overseas, the
Company enhanced cooperation
with overseas Group companies;
reinforced its platforms for engi-
neering, sales and services; and fur-
thermore, endeavored to achieve
greater cost competitiveness by
expanding its local procurement.
During the current term, domestic
sales of standard equipment in-
creased by ¥1,021 million (15.7%),
sales of large-scale systems in-
creased by ¥300 million (4.8%) and
sales of maintenance contracts and
supplies services increased by ¥192
million (5.3%) year-on-year.
Overall overseas sales decreased by
¥313 million year-on-year (7.5%) as
sales in the Asian region declined,
affected by the slowdown in the
Chinese economy.
As a result of the above, sales of this
business division totaled ¥21,830
million, up by 5.8% year-on-year.
Clean Systems
This business division is seeing a
growing need for high-value-added
cleaning equipment and peripheral
cleaning work, as well as aesthetic
maintenance services in Japan, al-
though the prolonged corporate
restraints on cleaning management
costs still continue.
To cope with this market environ-
ment, the Company focused on
strengthening holistic cleanliness so-
lutions by incorporating peripheral
cleaning work and on strengthening
proposals for the factory market. In
addition, the division worked on ex-
panding sales of scrubbers that real-
ize higher safety levels and improved
usability with higher work eficiency.
Domestic sales for cleaning equip-
ment increased by ¥270 million
(14.3%) year-on-year, revenue from
maintenance contracts and supplies
services decreased by ¥346 million
(11.3%), and revenue from commis-
sioned cleaning services decreased
by ¥633 million (41.3%).
Overall overseas sales increased by
¥2,243 million year-on-year (53.8%),
as sales for North America grew
owing to the continued contribu-
tion from the wooden loor sanding
equipment business.
As a net result of the above, sales
of this business division totaled
¥12,213 million, up by 25.6% year-
on-year.
Analysis of Financial Condition
(i) Assets, liabilities, and net assets
• Assets
Total assets as of March 31, 2016
amounted to ¥136,965 million, up by
¥5,405 million from the previous iscal
year-end. Current assets increased by
¥4,242 million year-on-year. This was
attributable primarily to an increase of
¥1,715 million in trade notes and ac-
counts receivable, an increase of ¥684
million in other current assets resulting
from higher advance expenses, among
other factors, and an increase of ¥330
million in raw materials and supplies.
Fixed assets increased by ¥1,163 mil-
lion year-on-year. The principal factors
behind this was an increase of ¥997
million in intangible ixed assets result-
ing from higher software in progress,
among other factors, which exceeded
the decrease of ¥431 million in tan-
gible ixed assets.
• Liabilities
Total liabilities as of March 31, 2016
amounted to ¥41,359 million, up by
¥1,947 million year-on-year. Current
liabilities increased by ¥3,153 million
year-on-year. This was attributable
primarily to an increase of ¥1,036 mil-
lion in accrued income taxes and an
increase of ¥922 million in short-term
bank loans. Fixed liabilities decreased
by ¥1,205 million year-on-year. This
was mainly due to a decrease of
¥1,482 million in long-term bank
loans.
• Net Assets
Total net assets as of March 31, 2016
amounted to ¥95,606 million, up by
¥3,457 million from the previous iscal
year-end. This was attributable primar-
ily to an increase of ¥5,109 million in
shareholders’ equity resulting from the
recording of net income attributable
to owners of the parent company,
despite a decrease of ¥1,692 million
in accumulated other comprehensive
income owing to lower foreign cur-
rency translation adjustments, among
other factors.
(ii) Cash Flows
Consolidated cash and cash equiva-
lents decreased by ¥2,199 million
from the previous iscal year-end to a
total of ¥32,725 million as of March
31, 2016. The status of each type of
cash low at year-end and the under-
lying factors are as follows.
(1) Cash low from operating activities
Net cash provided by operating ac-
tivities totaled ¥13,420 million. This
was attributable primarily to income
before income taxes amounting to
¥13,314 million, and depreciation and
amortization amounting to ¥4,415
million, despite income taxes pay-
ments amounting to ¥4,214 million
and an increase in trade notes and ac-
counts receivable of ¥2,049 million.
(2) Cash low from investing activities
Net cash used in investing activities
totaled −¥6,608 million. This was
mainly because, despite the record-
ing of ¥10,364 million in proceeds
from withdrawal of time deposits and
¥2,400 million in proceeds from re-
demption of securities, the Company
recorded expenditures amounting
to ¥10,133 million in time deposits,
¥3,270 million to purchase intangible
fixed assets, ¥2,906 million to pur-
chase tangible ixed assets, and ¥2,000
million to purchase securities.
(3) Cash low from inancing activities
Net cash used in financing activities
amounted to −¥4,308 million. This
was chiefly due to the recording of
expenditures amounting to ¥3,293
million in payment of dividends,
¥1,643 million in repayment of fi-
nance lease obligations, and ¥341 mil-
lion in repayment of short-term bank
loans, despite the recording of ¥1,227
million in proceeds from sale and
leaseback.
Notes : Equity ratio: Equity capital/Total assets
Fair value equity ratio: Gross market capitalization/Total assets
Ratio of cash flow to interest-bearing liabilities: Interest-bearing liabilities/Cash flow from operating activities Interest coverage ratio: Cash flow from operating activities/Interest payments
Assumptions
* All indicators are calculated on the basis of consolidated financial values.
* Gross market capitalization is calculated by multiplying the closing price of the Company’s shares at the year-end by the num- ber of shares of common stock issued and outstanding at the year-end (less treasury stock).
* The term “cash flow from operating activities” refers to cash flow from operating activities posted under the consolidated state- ments of cash flows. The term “interest-bearing liabilities” refers to those liabilities stated in the consolidated balance sheets on which interest is paid. Interest payments equate with the interest paid recorded in the consolidated statements of cash flows
Reference: Trend of cash low indicators
As of Mar. 31, 2012 As of Mar. 31, 2013 As of Mar. 31, 2014 As of Mar. 31, 2015 As of Mar. 31, 2016
Equity ratio (%) 69.6 69.8 67.6 69.8 69.5
Fair value equity ratio (%) 56.9 62.3 66.5 83.7 99.4
Ratio of cash flow to interest-bearing liabilities (%) 50.2 34.7 37.3 52.2 25.5
Interest coverage ratio 158.1 207.7 219.7 122.9 292.2
Outlook for the next iscal
year ending March 31, 2017
In the next iscal year ending March
31, 2017, the Japanese economy will
likely be characterized by a grow-
ing uncertainty about the future,
with capital spending and personal
consumption remaining lackluster,
emerging market economies such as
China experiencing a slowdown, and
foreign exchange markets continuing
to be unstable.
Amid this business environment,
Amano Corporation and its Group
companies continue to emphasize
the following strategies: 1) emphasis
on Time & Ecology business do-
mains, and enhancement of core
business; 2) becoming a niche leader
in the business domain in which we
excel; 3) ceaseless restructuring; and
4) management based on cash low.
In line with these four fundamental
strategies, we will work to address
the impor tant challenges in the
new medium-term business plan
described in “Management Policy”
on page 1 with a view to maximiz-
ing the corporate value of Amano
Corporation while aiming to be-
come a 100-year Company having
“Challenge to a New Stage” as its
management concept.
The following business results are
projected for the next fiscal year
ending March 31, 2017: net sales of
¥122,000 million, operating profit
of ¥13,000 million, ordinary profit
of ¥13,500 million, and net income
attributable to parent company
shareholders of ¥8,800 million.
These projections assume currency
exchange rates of ¥109 to the US
dollar and ¥122 to the euro.
Operating and Other Risk Factors
Matters relating to the qualitative
information contained in these
summary financial statements and
relating to the consolidated inancial
statements that could be envisaged
as having a possible material impact
on investors are described below.
Every effort are made to identify
factors that may now or in the fu-
ture pose a risk to the undertaking
of business by the Amano Group,
and these risk factors are then elimi-
nated or otherwise managed in the
course of business.
Forward-looking statements are cur-
rent as of the date of the release
of these financial results (April 25,
2016).
(i) Impact on earnings due to
changes in the business environ-
ment
The Amano Group uses the unique
technologies and know-how it has
accumulated to provide customers
with high-quality products, services
and solutions, thereby gaining large
market shares in each sphere of
business in Japan, North America,
Europe, and Asia, and developing its
business globally.
In the year ended March 31, 2016,
the Time Information System busi-
ness accounted for 71.5% of total
sales, and the Environment System
business accounted for 28.5%. Be-
fore the deduction of unallocated
expenses, the Time Information Sys-
tem business contributed 72.6% to
operating proit, while the Environ-
ment System business contributed
27.4%. In terms of weighted average
sales over the last five years, the
Time Information System business
accounted for 72.7% of total sales
and 75.3% of operating proit.
One future risk factor is that if
market expansion is forecast for a
business activity within the Time In-
formation System business segment
(which accounts for a large propor-
tion of the Group’s business) for
such reasons as a signiicant change
in the demand structure or the
creation of a new market, entities
in other industries or other power-
ful competitors may be tempted to
enter the market. In such an event,
if a competitor were to enter with
innovative products or solutions
that surpass Amano’s, the Amano
Group’s market advantage would
decline, which may have a material
impact on its business performance.
(ii) Fluctuations in exchange rates
The Group engages in business
activities on a global scale and has
production and sales bases overseas.
In view of this, the Group’s business
results may be impacted by luctua-
tions in exchange rates when the
proceeds for overseas transactions
are converted into yen.
(iii) Information security
In the course of providing system
solutions and developing cloud busi-
ness services (e.g., ASP, SaaS, and
hosting services), the Amano Group
handles confidential information,
such as personal information con-
cerning, or provided by, customers.
In view of this, the Company has
strengthened and thoroughly imple-
mented security control measures
based on the Information Security
Management Rules. Specifically, the
Company has implemented mea-
sures to protect confidential infor-
mation (e.g., encrypting hard disk
drives and external media) as well
as provided periodic staff training
through e-learning. Furthermore, the
Company obtained the Privacy Mark
certification in February 2014 and
has implemented all possible mea-
sures to ensure information security,
including supervision of service
providers and thorough compliance
with internal rules. Nevertheless, the
occurrence of an unforeseen situ-
ation that results in loss or leakage
of conidential or personal informa-
tion as described above could have
an adverse material impact on the
Group’s business performance due
to factors such as loss of conidence.
(iv) Natural disasters
Natural disasters (e.g., large-scale
earthquakes, windstorms, or loods)
may damage human lives or prop-
erty. The Amano Group continues
to take necessary measures at ordi-
nary times comprising: 1) imposition
of requirement for employees to
carry a disaster emergency contact
card at all times; 2) development of
emergency contact networks and
personnel safety check system; 3)
relocation of ile servers to external
data centers; 4) development of
a preparedness for setting up the
disaster management headquarters
at the time an emergency occurs.
However, in the event of a natural
disaster, the Group may temporar-
ily lose the ability to continue to
perform its operating activities due
to damage to its sales business sites
and production bases, or to employ-
ees experiencing dificulties in carry-
ing out their duties.
(v) Overseas business development
The Amano Group has been devel-
oping its business globally in Japan,
North America, Europe, and Asia.
Therefore, there is a possibility that
a situation may arise in which busi-
ness operations are disrupted due
to the application of unique laws, or-
dinances, or regulations or social dis-
order due to political disturbances,
war, or terrorism, etc. in countries or
regions where the Group conducts
business, which may adversely im-
pact the Group’s business perfor-
mance.
Issues to Be Addressed
The Company will take the following steps to achieve the goals set out in its new medi- um-term business plan.
1) Time Information System business
•Information Systems
The Information Systems business has seen potential demand for the time- and attendance-management system becoming actual demand. This system enables the em- ployer to develop or establish a work time management framework as an initiative to comply with “Perform Optimal Work Time Management” at a time when the Japanese government is leading the efforts to moni- tor companies with the aim of eliminating
“Unpaid Overtime Work” and “Extended Work Hours (Overwork).” Moreover, against the background of the revision to the Labor Standards Act, which aims to facilitate diverse ways of working to improve labor productivity, we are likely to experience a growth in demand for corporate system replacements, as well as cloud- and smart device-based systems.
In response to these market conditions, we will roll-out the new software product
“Next-Generation Human Resource and Labor Management Package TimePro-NX,” as a product targeting the small- to medium- sized enterprise market, to further step up our holistic solutions covering not only time and attendance management, but also hu- man resource and payroll management. In such ways, we will expand our customer base through providing a “One Stop Ser- vice,” from hardware services through to software and cloud services. In the medium-
sized enterprise market, we will enter the inancial accounting market by tying up with CREO CO., LTD. and work to expand op- erations with the aim of becoming a “mini- ERP vendor” by enhancing software for T&A, human resources, payroll, and accounting as well as strengthening our consulting sales activities.
In overseas markets, we will expand and im- prove our cloud services in Europe and the United States. Moreover, Horoquartz, S.A. of France is aiming to expand into other mar- kets in Europe, while Accu-Time Systems Inc. of North America intends to bolster its customer base by expanding sales of its new series of devices.
•Parking Systems
The Parking Systems business is witnessing a growth in the nation’s parking lot market owing to the real estate market becoming buoyant in advance of the 2020 Olympics. In addition to the need for parking lot manage- ment cost reduction, ensuring of safety and security in parking lots, and consideration of the environment, the need to propose solu- tions to improve user convenience has been increasing.
Given this market environment, we aim to become a “parking facility service provider” by further strengthening tie-ups with major parking lot management companies while improving the functions and operability of system equipment as well as providing vari- ous services through our parking lot data center for small- and medium-sized parking lot management companies. In addition, we will strengthen and expand our efforts related to facilities such as security gates, toll roads, and bicycle parking lots in order to expand our business.
As for overseas markets, in the United States, Amano McGann, Inc. will step up sales of new systems and strengthen solu- tion proposals by expanding and improving peripheral services to enlarge the market. In Europe, we will accelerate the deployment of bar code system products while seeking to expand operations through newly engag- ing in the commissioned parking lot manage- ment services business. In Asia, we will aim to expand operations by developing new markets and bolstering the commissioned parking lot management service business.
2) Environment System business
•Environmental Systems
In Environmental Systems, companies’ capital investment has remained solid in Japan and strong abroad.
Given this market environment, in Japan we will aggressively capture demand mainly for standard equipment and expand sales in the pharmaceutical, food, and cosmetics markets, which are expected to grow steadily. We will also work to strengthen our engineering ca- pabilities and comprehensive sales, including that of peripheral equipment, by tie-ups with industrial equipment manufacturers with the aim of becoming a “global engineering multi- vendor.”
In the overseas markets, we will further uti- lize the Philippines branch of Amano Time & Air Singapore Pte. Ltd. (ATAS) to strengthen and enhance our overseas network, step-up capabilities to provide engineering services to Japanese-owned corporate customers by strengthening the marketing and service framework for them through collaborations with Japan side and group companies, and improve cost competitiveness by expanding local procurement and assembly activities. In
North, Central and South America, we have established a local subsidiary in Mexico to continue expanding sales of standard equip- ment products to Japanese-owned corpo- rate customers operating locally, which are mainly automobile-related companies.
•Clean Systems
In the Clean Systems, while the trend of companies trying to reduce cleaning costs continues, amid the aging of sanitary workers and an increase in the number of inexperi- enced workers, needs to improve safety and operability of cleaning equipment have been increasing. At the same time, the need for maintaining building aesthetics at low cost has also been increasing.
In response to these market conditions, we will develop new markets for cleaning- robot products in Japan, develop the factory market more rigorously and expand sales of small-sized cleaning equipment targeting mini-sized supermarkets that have opened in urban areas and convenience store eat- in corners that are growing in number, thus bolstering our customer base in the country. With the aim of becoming a “total cleanli- ness service provider,” we also promote comprehensive proposals, including those for commissioned cleaning services and aes- thetic maintenance.
In overseas markets, we will capitalize on the demand of Japanese-affiliated distribution companies opening up stores in the Asian region and further scale up our business by strengthening the operational foundation for the wooden floor sanding equipment division of Amano Pioneer Eclipse Corp. in North America.
Information Systems
Accelerating information terminal
sales in the SME market
Strengthening Proposals for Cloud
solutions globally
In Japan, amid the stronger Government-
led initiatives encouraging companies to
tighten their monitoring of employee work
time, Amano’s information terminals and
T&A software for the mid-sized companies
market, the “TimePro-VG”, is selling well.
With the aim to provide the latest human
resource management solution, in April
2016, Amano released a new T&A soft-
ware, “TimePro-NX” for the SME market,
after a 10-year blank. The “TimePro-NX”
complies with the latest rules and is com-
patible to the various enterprise sizes, the
industries along with the varying system
environments,
In addition, for Cloud services, regional ef-
forts to meet the local market needs are
underway globally. In Japan the T&A / HR
ASP business by Amano Business Solu-
tions Corp. is expanding steadily. In North
America, Accu-Time Systems Inc. is provid-
ing a Cloud-based data collection service
through their information terminals and
ERP vendor systems. And in Europe, Horo-
quartz S.A. is making progress with the
SaaS version of their Workforce Manage-
ment software.
Parking Systems
The “OPUS” series for the North
American market is strong!
Large projects increasing towards
the 2020 Tokyo Olympics year
The new “OPUS” series of North America
is steadily winning orders for airports,
universities, and shopping centers etc. The
new system is highly rated for its ability to
support both online and offline applica-
tions, 2-dimensional bar code tickets and a
variety of payment methods.
On the other hand, in Japan, large-scale
development projects towards the 2020
Tokyo Olympics are increasing. In January
2016, the shopping center industry held
a trade show “SC Business Fair 2016”, at
which Amano exhibited the latest parking
solutions such as the gate-type parking sys-
tems, vehicle guidance systems, new park-
ing fee discount systems, and LPR systems
along with a case model of an installation
at one of the latest large-scale shopping
center. The exhibits were well received and
attracted much attention from the visitors.
For parking management services, Amano
will endeavor to strengthen its ability to
provide comprehensive solutions including
hardware, software and services placing
particular emphasis on the “Parking Web”,
a data service provided by the parking
data center.
Environmental Systems
Standard equipment and large-scale
systems continue to be irm
The Mexican subsidiary is up and
running
Capital expenditures by Japanese domestic
companies remains irm and sales for stan-
dard dust collectors along with large-scale
systems are positive. Amano has renewed its
lammable dust collectors specially designed
for explosive dust such as aluminum and has
introduced electric dust collectors dedicated
for metal 3-D printers. By responding to new
market needs, Amano shall continue its ef-
forts to expand the market.
As for overseas, in January 2016, Amano
established a new subsidiary in Mexico,
AMANO TIME & ECOLOGY DE MEXICO
S.A. DE C.V. (abbr. AMX) in response to the
rapidly expanding auto industry. AMX is situ-
ated in Leon City Guanajuanto, which is the
geographical center of many Japanese com-
panies located in the region. AMX plans to
enhance its engineering capabilities, strength-
en its sales and service regime, and strive to
improve cost competitiveness by increasing
local procurement, assembly and to build a
local supply chain.
Clean Systems
North American Market: Wooden
Floor Sanding Business is the per-
formance driver!
Strengthening Sales of Robotic
Cleaners
In light of the strong housing and building
market in North America, the wooden
loor sanding business is steadily expanding.
In addition, the strong wooden loor sand-
ing business is creating a synergistic effect
with other businesses such as cleaning ma-
chines and chemicals, boosting the cleaning
business as a whole.
In Japan, the cleaning industry is struggling
with aging workers and labor shortage and
against this background, Amano is strength-
ening its efforts to expand the sales of safe
and eficient robotic vacuum cleaners and
scrubbers. Amano plans to enhance its
lineup of robotic cleaners and develop the
series as mainstream products that relect
the market needs.
Social Contribution Activities
Signed up for a partner member-
ship to the “Kodomo Eco-Club”!
The “Kodomo Eco-Club” is a program
sponsored by a public interest incorpo-
rated foundation the Japan Environment
Association which promotes environmen-
tal activities for children from 3 to 18 years
of age. With the support from local mu-
nicipalities, private companies and various
organizations, the association implements
environmental activities through their na-
tionwide ofice network.
Since the business theme of Amano is
“Time” and “Ecology”, it is important for
Amano that children have a broad un-
derstanding of how people relate to the
environment, to foster the feeling that na-
ture is precious, and to nurture the abilities
to think and act autonomously in order
to solve environmental problems. Amano
believes that such programs will broaden
regional environmental protection activi-
ties and intends to support it as part of
Amano’s CSR.
“Kodomo Eco-Club” SC Business Fair 2016
Guanajuanto AMANO TIME & ECOLOGY DE MEXICO S.A. DE C.V.
Sanding Machine
Robotic Floor Scrubber
“SE-500iX II” Commercial
Robotic Vacuum Cleaner “RcDC”
T opics
Amano USA Holdings, Inc.
Amano Cincinnati, Inc.
The ACI time division had a successful launch of its latest side printer time clock line. This allowed for the discontinuation of some older models and the consolidation of new models which increase the economies in our produc- tion environment.
The release was well received by all sales chan- nels. The new product is currently in stores at our largest retail customer and is selling well. This new clock was designed with the custom- ers’ needs in mind, with its simplistic program- ing functions it allows the customer to change the time, print conigu- ration and other setting with the touch of a button. This new user friendly programming design is sure to provide a positive customer experience and reduce calls to our support center.
The next generation of PIX-3000x and TS- 3000i are now in the early stages of develop- ment. The PIX-3000 has been a staple in our time clock product portfolio for many years. It is one of the bestselling and most robust side printers on the market. The PIX-3000 was sold in our domestic market as well as the interna- tional market and was available in many power conigurations.
T h e T S - 3 0 0 0 i w a s originally developed as a replacement for the PIX-3000xn and xnt and was designed to meet the needs of the
financial trading market. However, we have seen the need for synchronized time reporting expand to other markets like health care, trans- portation, casino among others. The TS-3000i continues to be a strong product in our time clock line. The features and durability of this product continue to dominate the market. The development and manufacturing for this new series will be done in our Ohio factory and will incorporate the latest technology available. The consolidation of our administrative team to the Ohio factory has proven to be benei- cial to both our customers and our internal technical team. Our administrative staff has been trained on time clock support and is able to assist our customers quickly. We are able to provide valuable customer feedback to our development and manufacturing team which
allows for prompt root cause analysis and cor- rective actions.
Accu-Time Systems, Inc.
During 2015, Accu-Time Systems, Inc. (ATS) began preparations to celebrate its 25th year in business with the release of four new Work- force Management (WFM) data collection terminals. These terminals were developed in response to reseller demands for faster termi- nals with greater screen real estate, a full-color
display and a greater variety of biometric and other reader options. The new and improved terminals, members of the PeoplePoint family of ATS products, have garnered immediate acceptance by our value added resellers as demonstrated by the 11,000 units that shipped during the irst year of production.
ATS’s TimeCom business, which in- tegrates our time clocks to a variety of enterprise re- source planning (ERP) and human capital management (HCM) systems through the utilization of our cloud based integration middleware, grew steadily in 2015. Revenue from TimeCom business increased 280% over 2014 primarily due to a 42% increase in the number of TimeCom cus- tomers. These new customers resulted in an 86% increase in terminal sales with correspond- ing warranty products, professional services, and monthly hosting fees for our SaaS solution. The growth in the TimeCom business is largely attributed to our close relationships with our partners, our ability to further penetrate the ERP/HCM market space, and making gains in speciic industries, including retail, manufactur- ing, higher education, and healthcare. Growth in the TimeCom segment of ATS’s business can be seen in the expansion of our hosted solution and terminal sales out- side of the United States. Worldwide, over 100,000,000 transactions per year are captured by ATS’s PeoplePoint products. A big factor in our TimeCom success is our ability to give our customers greater visibility and transparency into their employee activity taking place at the terminal through the use of our TimeCom Monitor. The TimeCom Monitor is an easy to use web portal that is customer facing and allows Accu-Time’s customers to gain visibility
into the health and status of their em- ployee time clock deployment, as well as the integration
with their ERP system. With the TimeCom Monitor, users can gain insight into average up time for all devices across the entire clock deployment, as well as information about the employees such as their badge numbers or employee demographic data that’s interfacing with the ERP system. The TimeCom Monitor allows our customers to get ahead of potential problems before they occur. TimeCom Moni- tor gives customers with global, regionalized or localized IT support the ability to monitor their clock deployment and see problems that may occur with user behavior, the integration, or the network infrastructure. Having access to this information allows them to solve these problems before they have a negative impact on the payroll process.
ATS is committed to listening to the demands of the market and providing quality and value to our customers. The evolution of the PeoplePoint family of terminals, TimeCom and the TimeCom Monitor have successfully dem- onstrated our commitment in 2015. Amano McGann, Inc.
General Overview
Amano McGann, Inc. (AMI) reported record numbers for revenue and pre-tax profit for 2015, surpassing all planned and prior year inancial performance by a signiicant margin. The key drivers for 2015 inancial performance include the dealer network, with new repre- sentative ITR (GA) and the Northeast and Southeast U.S. region branches. Dealers sur- passed the prior year’s revenue by 39%, while the Northeast and Southeast regions exceeded 2015 revenue by 20% and 40% respectively. In addition, the Metric On-Street direct product sales doubled from the prior year.
It’s noteworthy that, in 2015, OPUS produc- tion was forecast at 40% and magstripe at 60%. The actual product mix indicates the strong market acceptance of OPUS with almost 60% of the production dedicated to OPUS.
Core Products
The OPUSeries® line of parking devices were designed using the latest system architecture and communication platforms, leveraging the advanced features of AMI’s industry leading software solutions, iParcProfessional® and OPUSuite®.
iParcProfessional is AMI’s on-premise pow- erhouse application that has evolved over 20
Sends employee demographic data
TimeCom Hosted Solution
ERP/HCM Solution
Engine XML
TM
Validates employee demographic data
Sends employee demographic data, software updates, clock configurations
to terminal
Sends raw data from terminal in/out, lunch, break, transfer Receives raw data
from terminal in near real-time
in/out, lunch, break, transfer
（ ） （ ）
dressable market segment for the future.
Major Project Awards
AMI continues to see a steady rise in the sale of OPUSeries equipment. The advanced barcode technology and extensive feature set have secured the award of major projects across the country. AMI was awarded the Lam- bert-St. Louis International Airport contract in July 2015 which includes 64 lanes of OPUSe- ries equipment in two parking garages and ive surface lots. The City of Sacramento contract marked another signiicant award in November 2015 and includes
34 lanes of OPU- Series terminals to be installed in ive parking facilities. The system will offer patrons vis- ibility to available
parking, options to prepay for parking, and the ability enter and exit facilities with relatively no delay. This project also provides a platform to develop new features and functions that will expand AMI’s product offerings and competi- tive advantage.
Amano Pioneer Eclipse Corporation Amano Pioneer Eclipse Corporation (APEC) grew 26.5% in 2015, continuing a string of six consecutive years of growth. APEC, which manufactures and sells products under the Pioneer Eclipse, American Sanders, and Amano Environmental Americas brands, enjoyed reve- nue growth in every product category in 2015, led by an impressive 109% growth in cleaning machines.
APEC’s Pioneer Eclipse cleaning business had an unprecedented year of success, finish- ing 2015 with growth of 41%. The cleaning
machine category led the way as Pioneer Eclipse was awarded private label man- ufacturing contracts with three major cleaning equip- ment OEMs. Additionally, the Strategic Accounts sales team landed the propane burnisher business at a ma- jor US grocery store chain and the propane burnisher business at one of the world’s largest big-box retailers. This was aided by a small April 2015 acquisition, allow- ing Pioneer Eclipse to improve its product position at a major US retailer while also im- proving its product portfolio and gross margins in the high volume loor machine category. In the cleaning chemical category, Pioneer Eclipse years to become
the most feature rich and successful parking software in the industry. OPU-
Suite is AMI’s next generation of cloud-based solutions designed to provide advanced fea- tures, functionality and expansion to iParcPro- fessional’s current install base as well as future projects.
These advanced and stylish solutions are per- fect for both medium and high-volume loca- tions where a superior customer experience with lexible payment options is a must. AMI’s unique, encrypted 2D barcode ticket technol- ogy is more secure than traditional magstripe tickets with the added value of lower consum- able costs.
Expanded Products
Overture™ has established itself as an international
player in over 30 countries as Xparc. It has now been enhanced to meet the unique require- ments of the small and
medium-volume locations in North America. Overture was released for sale in November of 2015 at the Dealer Conference in Japan. The Overture product line was featured at the Parking Industry Exhibition in Las Vegas in Feb- ruary where it was well-received. It will also be highlighted at various parking industry shows in 2016, including the Expo Seguridad in Mexico City, International Parking Institute (IPI) Exposi- tion in Nashville, National Parking Association show in Atlanta and the Canadian Parking As- sociation in Ottawa, Canada.
Overture was installed in its irst North Ameri- can location in February with two additional installations scheduled for April and June. We look forward to a successful 2016 with the Overture product line.
The Amano Multi-Space-Meter (MSM) Pow- ered by Metric continues to be deployed in expanded geographic areas across the U.S. with continued growth in Ontario, Canada. New installations include the states of Califor- nia, Texas, Minnesota and Alabama. The New Jersey account base continues to grow organi- cally. In addition, the On-Street maintenance service business via NowCare® grew by 35%. Metric will be launching a new MSM pay sta- tion, SPRITE, which was debuted at the IPI Expo in May 2016. SPRITE is a product that was developed speciically to capture the On- Street market which will create a larger ad-
posted its third consecutive year of growth in the private label segment of the market. Invest- ments in new labeling equipment helped grow this category 86% in 2015. Private label now represents 13% of APEC’s annual chemical sales.
The American Sanders wood floor business has continued to grow into an im-
portant part of APEC’s overall portfolio. Origi- nally acquired in March, 2014, American Sand- ers contributed 31% growth in 2015. While the continued strength of the US housing and construction markets contributed to the strong sales year, R&D investments in product improvements and new product introductions were well received in the marketplace. One example is the HydraSand Multi-Head Sanding disc which exceeded its 2015 sales forecast by 120%.
APEC’s Amano Environ- mental Americas (AEA) business grew 13% in 2015. The business was led by 25% growth in the equipment category, its fourth consecutive year of double digit equip- ment growth. The performance of this business was further highlighted by a 27% improvement in gross margins, which was the result of im- proved manufacturing processes and pricing strategies.
In 2015, APEC continued to improve its sales and marketing presence. The company par- ticipated in a record number of trade shows in 2015, both in the US and internationally. These trade shows included four major US shows as well as international shows in Canada, Mexico and Brazil. Additionally, new sales personnel were hired in Northern Europe, Canada, and the United States.
Amano Europe Holdings, N.V.
Amano Europe, N.V. In 2015 Amano Europe continued to grow both rev- enue and profit in the main business
segments; parking solutions and time and at- tendance.
The X-Parc parking solution has been installed successfully in 30 different countries worldwide. With X-Parc Amano offers a robust, flexible
and network centric solution. The traditional VALUE-Line has been extended with an ECO- Line to serve niche markets and a SMART-line focusing on cloud- and mobile services. Ease of integration, low cost of ownership, fast time to market and quality assurance are the four cor- nerstones to drive success. With X-Parc range, Amano is positioning itself in the global mobil- ity market as a solution and service provider.
Astrow Cloud, the next genera- tion of the proven T&A software solution for small and medium sized businesses, is getting widely accepted in several European countries with around 10,000 actual users. The key drivers to success are mobility, lexibility and appeal. iTR-100 is now sold all over Europe through different channels. iTR-100 stretches on the typical time recorder functionality by offering new and compelling cloud services, like online support, payroll and
reporting. Ultimately, iTr- 100 is also the entry point for a further and seamless upgrade towards Astrow Cloud.
Amano Time & Parking Spain, S.A. It is commonly known that Gibraltar is a British overseas territory, although it is geographically located on the southern end of the Iberian Peninsula. It has an area of 6,7km2 and 32.000 people live there. The ofi- cial language of Gibraltar is English, but most locals are bilingual, speaking Spanish. Its currency is Gibraltar Pound.
This Gibraltar market is our sales territory, where 7 car parks use AMANO machines. One of them is a large and emblematic car park with approximately 1.000 parking lots. Last year 2015, we won this project and our X-Parc ma- chines were installed.
By penetrating into the Gibraltar market, we keep a high reputation in Gibraltar and a good relation with a governmental company who manages car parks there. Thanks to such a presence, a potential new project is now under negotiation. We wish it become the 8th. car park in Gibraltar with AMANO machines. Horoquartz, S.A.
During 2015 Horoquartz observed a steady growth of its activities in the major business lines as the market leader in France. In Octo- ber 2015 Horoquartz acquired ARGOSSE, a
French company specialized in access control and related services, in order to enforce the access control division of Horoquartz. The workforce management division was reorga- nized geographically in order to be able to serve the customers better and faster, more speciically the big accounts, which constitute a growing part of the business of Horoquartz not only in the French market but also worldwide. Horoquartz continued to invest in optimization software, like planning solutions, as this is a key driver of the workforce management busi- ness. Speciic attention is given to the growing demand of cloud solutions. All Horoquartz solutions are part of an in- tegrated solution, which al- lows Horoquartz to act like Single Point of Contact in a wide range of HR manage- ment needs.
Amano International
Trading (Shanghai) Co., Ltd.
AITS has achieved the irst installation
of AMANO QR code Parking system
in China.
The distinctive feature of the system is that it operates by recognizing license plates and printing QR code tickets.
Once a license plate is recognized, drivers can freely enter the parking lot without extracting the tickets.
On the other hand, ticket extracting entry is also available when license plates are not rec- ognized.
Customers can make payment on the auto- matic pay station before they exit.
The charges can be referred by using QR code ticket or typing their car numbers on the machine. Furthermore, customers can also make a pay-
ment via smartphones.
No matter where customer is, they can make electronic payment by scanning their QR code on the ticket.
If they terminate the payment, the drivers can exit without halting.
We will vigorously promote this QR code parking system hereafter.
Amano Malaysia Sdn. Bhd.
AMANO MALAYSIA has set up Park-
ing management service department to
diversify and expand the business.
We have employed an experienced staff member in management service ield, and we manage four parking systems so far. These facts show that we are entirely involved in this new business.In June 2016, we received the order of parking management service from TESCO PUCHONG, the first outlet of TESCO in Malaysia, who is the third world’s largest retail company.
This parking lot has 745 car spaces and has three lanes for each exit and entry way. The parking lot was for free before, however, they have started being troubled with illegal park- ing from two months ago, derived from the new-establishment of LRT station next to the store. Therefore, they decided to charge some amount of money in parking in order to exclude those illegal parking by introducing the parking system. They sought the parking management company which provides the system installation and parking management. As a result of competition, AMANO Malaysia was able to receive the order. The manage- ment service will start on 7th of July and we are preparing in a rush for opening under Ramadan month. The parking system will open for 24 hours and we will place the staff(s) at each management ofice from 8 A.M. to 11 P.M. TESCO has already opened over 20 stores in Malaysia, and we expect to make the next management contract in rest stores.
The parking management business in Malaysia is very competitive as there exist about 30 rival companies including both small and large. Nevertheless, we set our goal of No.1 Park- ing management service company in Malaysia equivalent to Parking equipments sales in near future. We will be implementing the strong marketing continuously.
Our sales in Parking equipment also increases well as time goes. This year, AMANO X-Parc system will be installed in Empire city, the new
eTemptation Suite WORKFORCE
MANAGE- MENT
EMPLOYEE SELF-SERVICE JOB
COSTING
ACTIVITY MANAGEMENT WORKFORCE
SCHEDULING
ADVANCED WORKFORCE SCHED-
ULING MEDIUM AND LONG- TERM SCHEDULING COMMUNI- CATION INTERFACE Time Management WORKFORCE
MANAGE- MENT
EMPLOYEE SELF-SERVICE
ACCESS CONTROL
JOB COSTING
ACTIVITY MANAGEMENT WORKFORCE SCHEDULING
ADVANCED WORKFORCE SCHEDULING
MEDIUM AND LONG-TERM SCHEDULING COMMUNI-
CATION INTERFACE
