FINANCIAL REPORT
April 2009 March 2010
1. Basic Management Policy
Throughout its history, Amano has adhered to a basic policy of putting the customer fi rst. This has meant paying heed to what its customers say, based on the corporate themes of “people and time” and “people and the environment,” and giving pivotal im- portance to customer satisfaction throughout its business activities, particularly in sales, production, and development activities.
In accordance with this fundamental policy, Amano continues to undertake business activities with the goal of earning the trust and high regard of all those who support it: customers, employees, shareholders, suppliers and other entities with which it does business, and the local community. It achieves this by providing a variety of products, systems, services, and solutions that match the needs of customers in relation to the themes of “people and time” and “people and the environment.”
Amano and its Group companies direct their efforts towards 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 Management Plan
[1] Basic Policies
Building on the success of the previous management plan, which aimed at “a strong profit structure and sustainable growth,” under the new medium-term management plan the Group is positioning Amano McGann, Inc. of the U.S. and Horosmart, S.A. of France as key drivers for global development of parking system and information system businesses, particularly in the U.S. and Europe, and focusing on business expansion in Japan.
Amano and its Group companies each continue the tradition of evolving continuously in response to changes in the times, while maintaining the following four immutable strategies of the Amano Group.
1) Emphasis on Time & Ecology business fi elds, and enhancement of core business 2) Being a niche leader in the business fi elds in which we excel
3) Constant restructuring
4) Management based on cash fl ow
Based on these four fundamental strategies, in April 2008 Amano inaugurated a new three-year medium-term management plan.
However, from the latter part of 2008, the worldwide fi nancial crisis stemming from the subprime mortgage issue in the U.S. seriously affected the real economy on a global scale. Since the business environment envisaged when we formulated this medium- term management plan has changed dramatically.
Management Policy
1. Business Strategy
• Expanding business in the North American and European markets
In North America we will merge Amano McGann’s parking management software with Amano Group’s software and hardware, and expand the market for parking sys- tems by strengthening direct sales structures to work closely with customers in pro- posing solutions.
In Europe we will merge Horosmart’s French software, hardware, and customer base with Amano Group’s software and hardware. We will also expand our information system business in the French market and use this as a springboard for expansion into the wider European market, including the UK and the Benelux region.
• Expanding business in the Japanese market
In the Japanese market we will reinforce ties with domestic group companies, par- ticularly in the information system and parking system fi elds. We will also further expand our existing customer base and create new markets by strengthening our ser- vice and holistic solution capabilities and launching new products.
2. Enhancing Profi tability
• Boosting profi tability in the information system and parking system businesses In overseas markets we will increase profi tability by implementing our business strat- egies for Amano McGann and Horosmart to maximize these profi table companies’ contribution to consolidated results. This will be achieved through increased sales in the North American and European markets, particularly sales of high-added-value products.
As for the Japanese market, in the information systems fi eld we will continue to stan- dardize large-scale solution systems and increase added value by expanding sales of software to small and medium-sized businesses. In the parking systems fi eld we will boost profi tability by developing cost-competitive products and strengthening cost control for each site.
3. Improving Capital Effi ciency
• Return on equity (ROE)
As well as focusing on enhancing the profi tability of all businesses, we will strive to improve capital effi ciency through steps such as fl exible purchasing of treasury stock and aim for ROE of 10.0% on a consolidated basis.
[2] Numerical target plans
The original numerical target plans for fi scal year ended March 31, 2011, were revised to; Net Sales ¥83.1bn (+5.7% year-to-year), Operating Income ¥3.2bn (+66.1% year- to-year), Ordinary Profi t ¥3.5bn (+43.7% year-to-year), Net Income ¥1.3bn (+28.7% year-to-year).
Kaoru Haruta President and CEO
3. Basic Policy on Distribution of Profi ts, and Dividend for This and Next Term
Amano places great importance on its policy for dividends to shareholders. Fundamental to this is its policy for the return of profi t to shareholders, based on maintaining a stable ordinary dividend of ¥26 annually (¥13 interim and ¥13 year-end), together with appropriate results-based distributions and fl exible purchasing of treasury stock. The Company aims to maintain a payout ratio of at least 35% on a consolidated basis and a ratio of dividend to net assets of at least 2.5%.
In line with this policy, we plan to pay a year-end dividend of ¥13 per share, unchanged from the amount paid at the end of the previous year. As a result, the annual per-share dividend will be ¥26 (including the
¥13 per share paid as the interim dividend), ¥4 lower than the previous year. This corresponds to a divi- dend payout ratio of 197.0% and a 2.7% ratio of dividends to net assets on a consolidated basis.
With regard to the dividend for the next fi scal year, we will aim to pay a dividend for the year of ¥26 (interim dividend of ¥13, and year-end dividend of ¥13).
Retained earnings will be earmarked for fund effective investment aimed at the fundamental enhancement of the Company’s capacity to conduct its business operations. This will include the expansion and strength- ening of existing business fi elds, strategic investment in growth fi elds, and spending on research and devel- opment, as well as the rationalization of production plant and equipment for the purpose of reducing costs and further improving product quality.
Analysis of Business Results
Business Results in the Year Ended March 31, 2010
The Japanese economy during the fiscal year ended March 31, 2010 saw some evidence of economic recover y and signs of bottoming of capital expenditure on the back of an increase in exports. This was supported by factors including eco- nomic growth in Asian countries. However, difficult circumstances continued as the employment and income environment remained slug- gish.
Amid this business environment, we emphasized Group growth strate- gies based on our new medium- t e r m m a n a g e m e n t p l a n . W h i l e working to globally develop prod- ucts and markets and enhance our capacity to provide holistic solutions, the entire company focused on the in-depth cultivation of client needs and continued effor ts to reduce cost of sales and selling, general and administrative expenses.
However, the impact of decreased demand due to our clients’ increas- ing unwillingness for capital spending exceeded our expectations by a signifi cant margin.
As a result of the above, during the year the Company recorded sales of ¥78,586 million, down by 14.4% year-on-year. Operating profi t fell by 64.1% to ¥1,927 million, ordinar y profi t declined by 54.0% to ¥2,436 million, and net income dropped by 54.3% to ¥1,011 million.
The following is an overview of sales by business division.
Sales by business division
(Unit: Millions of yen)Year ended March 31, 2009
Year ended
March 31, 2010 Change
April 1, 2008 to March 31, 2009 April 1, 2009 to March 31, 2010
Amount Ratio (%) Amount Ratio (%) Amount %
Time Information System Business % % %
Information Systems 19,848 21.6 17,440 22.2 (2,408) (12.1)
Time Management Equipment 5,361 5.8 4,316 5.5 (1,045) (19.5)
Parking Systems 38,968 42.5 37,786 48.1 (1,182) (3.0)
Subtotal 64,177 69.9 59,542 75.8 (4,635) (7.2)
Environment System Business
Environmental Systems 19,066 20.8 11,521 14.6 (7,545) (39.6)
Cleaning Systems 8,569 9.3 7,523 9.6 (1,046) (12.2)
Subtotal 27,635 30.1 19,044 24.2 (8,591) (31.1)
Total 91,812 100.0 78,586 100.0 (13,226) (14.4)
Time Information Systems Business
• Information Systems:
Time & attendance (T&A), payroll, human-resource management, access control, and cafeteria man- agement systems
• Time Management Equipment: Time recorders, and time stamps
• Parking Systems
Parking and bicycle-parking space management equipment, and management services
Information Systems
This business division has continued to experience a tough business en- vironment in the domestic market due to factors including fl agging de- mand, refl ecting less IT investments by companies, in addition to growing competition in the market, despite signs of economic recovery. Mean- while, the environment surrounding the business in this segment has been undergoing a significant shift from a period of owning systems to a period of utilizing them, with an increasingly prominent movement in the industry toward cloud com- puting which is known as the next- generation business.
Under these circumstances, the Company has focused on strength- ening its oper ating activities by holding private seminars through- out Japan and
providing solu- tions to exist- ing customers. T h e a i m w a s to capitalize on oppor tunities ar ising out of
demands such as system renewal and program modifi cations, in order to comply with the Revised Labor Standards Act by the time it came into force on April 1, 2010. In addi- tion, the Company has worked on expanding demand for Application Ser vice Provider (ASP) ser vices by reinforcing alliances with Group companies in Japan in order to re- spond to the needs in the market- place.
During the year, hardware sales declined by ¥1,292 million (20.6%) year-on-year, due to factors including a decrease in orders for large proj- ects. Software sales decreased by
¥239 million (6.3%), and sales gener- ated by maintenance contracts and supplies ser vices slipped by ¥224 million (7.0%). Although software sales decreased compared with the previous fiscal year, the number of pieces of software sold increased year-on-year as a result of increased demand in association with activities to comply with the Revised Labor Standards Act in the fourth quarter. As a result, T&A system sales were down by ¥1,413 million (14.4%), while access control system sales slipped by ¥300 million (22.7%). While European sales remained strong with increased revenue on a local currency basis, driven by the solid growth of Horosmar t S.A., exchange rate fl uctuations resulted in reduced revenue on a yen basis. Sales decreased in Nor th Amer- ica and Asia. Total overseas sales dropped ¥648 million (down 10.8% year-on-year).
As a net result of the above, overall sales in this business division totaled
¥17,440 million, representing a de- crease of 12.1% from the previous year.
Time Management Equipment
This segment continues to face a dif- fi cult business environment in Japan as a result of a continued decrease in unit sales due to factors including a shift toward low-cost units, in ad- dition to a drop in the number of new store openings and the sluggish demand for replacements.
In order to combat this mar ket environment, Amano has been mak- ing efforts to cultivate demand for replacement and developing new markets. These include launching a new type of time recorder, with a low-cost design that offers high- functionality, and an IC-type time recorder which can be connected to a PC with enhanced usability and ecological elements.
During the year, aggregate sales including exports fell by ¥545 mil- lion (14.7%) year-on-year, despite a positive effect from launching new products in the domestic market. As overseas demand remained slug- gish during the period across North America, Europe and Asia, overall overseas sales were down by ¥663 million (a year-on-year decrease of 30.5%).
As a result of the above, the time management equipment business division generated sales totaling
¥4,316 million, down by 19.5% from the previous year.
Parking Systems
This segment saw moderate recovery in demand both for new and renewal projects in Japan. Amid the recovery in car sales supported by economic measures including subsidies for those who are purchasing new cars for replacement, parking lot occupancy
rates improved in line with an in- creased car usage and this resulted in the resumption of renewal projects which had been postponed. Another factor behind the recovery is advance- ment in “Scrap and Rebuild” plans of unprofitable parking lots by parking management companies.
In the operational environment sur- rounding the parking business, the number of new initiatives reflect- ing the motorized society has been increasing. These include measures against greenhouse gas emissions, efforts to build park-and-ride park- ing spaces which aim to ease traffic congestion, introduction of car sharing services, and an expansion of charging stations for electric vehicles. As a result of the above, parking space manage- ment that focuses on the needs of parking lot users has become increas- ingly important.
Amid this market environment, the Company has been striving to spur demand for replacement by focus- ing on making proposals from the customer’s perspective, emphasizing areas such as higher profi tability and efficiency of parking space manage- ment and reinforcing its provision of solutions in collaboration with Group companies in Japan.
In the market for exclusive gate sys- tems, the Company has also focused on cultivating new markets to pro- mote safety and security in addition to encouraging efforts for labor saving and rationalization.
Sales of car and bicycle parking system devices decreased by ¥1,473 million (10.4%) from a year earlier due to a decrease in orders for large projects, while revenues from maintenance contracts and supplies services in- creased by ¥197 million (2.4%). The number of parking spaces man-
aged by Group subsidiar y, Amano Management Service Corporation in its commissioned parking lot manage- ment business increased by 24,400 (16.1%) from the end of the previous fi scal year.
Overseas, sales in North America and Europe declined due to the deterio- rating economic climate while rev- enue in Asia increased from the previ- ous year as a result of double-digit growth in South Korea and Malaysia. Overall, overseas sales decreased by
¥1,510 million, down 11.9% year-on- year.
As a net result of the above, the Park- ing Systems business division provided sales totaling ¥37,786 million, a drop of 3.0% from the previous year.
Environment System Business
• Environmental Systems:
Standard dust collectors, large dust collection systems, pneumatic powder conveyance systems, high-temperature hazardous-gas removal systems, deodorization systems, and electrolytic water generators
• Cleaning Systems:
Cleaning equipment, dr y-care cleaning systems, and cleaning management services
Environmental Systems
As capital expenditure by manufac- turers remained sluggish in Japan, this business division continued to face a challenging operational environment despite a prominent recovery in de- mand in the electric device-related segment such as liquid crystal and semiconductor products in addition to the movement toward resuming
projects that had been frozen or post- poned in the past.
In an effort to ride out this economic environment, Amano has been devot- ing efforts to stimulate demand by strengthening direct sales to existing customers through activities including dust explosion prevention seminars as a measure to promote safety and security, aimed at compliance with en- vironmental legislation and proposals on labor-savings and cost cuts.
Revenue from this segment dropped substantially during the period. As a breakdown, sales of large-scale sys- tems fell by ¥3,449 million (46.0%) year-on-year while revenue from stan- dard equipment declined by ¥2,584 million (41.9%), and revenue from maintenance contracts and supplies services decreased by ¥964 million (25.5%).
Overseas operations remained slug- gish with a decline in orders, refl ect- ing reduced capital investment by Japanese companies operating in Asia. Overall overseas sales fell by ¥469 million (down 40.6% year-on-year). As a result of the above, sales of this business division totaled ¥11,521 mil- lion, down by 39.6% year-on-year.
Cleaning Systems
This business division continued to face a diffi cult business environment in Japan with fewer new commercial facilities opened and capital invest- ment in the factory market remain-
14.9% year-on-year).
As a result of the above, sales in this segment totaled ¥7,523 million, down by 12.2% from the previous year.
Analysis of Financial Condition
(i) Assets, Liabilities, and Net Assets
• Assets
Total assets at March 31, 2010, amounted to ¥100,687 million, down by ¥1,505 million from the previ- ous fiscal year-end. Current assets increased by ¥2,095 million year- on-year. This was chiefly due to a
¥4,956 million increase in cash and bank deposits despite a reduction of
¥2,517 million in notes and accounts receivable. Fixed assets decreased by
¥3,600 million year-on-year. This was attributable primarily to a reduction of ¥1,634 million in intangible fixed assets and a ¥1,580 decrease in long- term deposits.
• Liabilities
Total liabilities at the fiscal year-end amounted to ¥25,719 million, down by ¥1,078 million year-on-year. Cur- rent liabilities dropped ¥761 million year-on-year. This was largely due to decreases in accounts payable and accrued expenses among others, as well as a reduction of ¥1,053 million in other current liabilities. Fixed liabili- ties decreased by ¥317 million year- on-year. The principal factors behind this were a reduction of ¥391 million in long-term accounts payable and a ¥324 million decrease in accrued retirement benefi ts for employees de- spite a ¥512 million increase in lease obligations.
• Net Assets
Total net assets at March 31, 2010 amounted to ¥74,968 million, down by ¥427 million from the previous fi s- cal year-end. This was primarily due to a reduction of ¥1,150 million in total retained earnings with factors includ- ing dividends from surpluses, despite an increase of ¥590 million in total valuation and translation adjustments resulting from a rise in foreign cur- rency translation adjustments, etc.
(ii) Cash Flows
Consolidated cash and cash equiva- lents increased by ¥4,224 million from the previous fi scal year-end, to a total of ¥20,933 million on March 31, 2010. More specifi cally, a description of the status of each type of cash fl ow at the year-end and the underlying factors are as follows.
ing sluggish, despite a shift from outsourcing to in-house cleaning in an effort to curb cleaning costs. In an effort to fi ght against the pre- vailing conditions, the Company has focused on stimulating demand by rolling out demonstrations of clean- ing machines throughout Japan. The aim is to obtain oppor tunities for making specifi c proposals leveraging the effect of lower cleaning costs. In addition to falling demand for buffing machines from the previ-
SE-430e
ous fi scal year, sales of fl oor clean- ing equipment were affected by reduced capital investment in fl oor cleaning machines for factor ies. Consequently, year-on-year sales de- clined by ¥422 million (17.1%). Rev- enues from maintenance contracts and supplies services were down by
¥202 million (6.3%).
Over seas sales in this segment slowed in Nor th America, Europe, and Asia. Overall, over seas sales decreased by ¥293 million (down
Notes : Equity ratio: Equity capital/Total assets
Fair value equity ratio: Gross market capitalization/Total assets
Ratio of cash fl ow to interest-bearing liabilities: Interest-bearing liabilities/Cash fl ow from operating activities Interest coverage ratio: Cash fl ow from operating activities/Interest payments
Assumptions
* All indicators are calculated on the basis of consolidated fi nancial values.
* Gross market capitalization is calculated by multiplying the closing price of the Company’s shares at the year-end by the number of shares of common stock issued and outstanding at the year-end (less treasury stock).
* Cash fl ow from operating activities refers to cash fl ow from operating activities posted under the consolidated statements of cash fl ows. Interest-bearing liabilities refers to those of the liabilities stated in the consolidated balance sheets on which interest is paid. Interest payments equate with interest paid stated in the consolidated statements of cash fl ows.
Reference: Trend of cash fl ow indicators
At Mar. 31, 2006 At Mar. 31, 2007 At Mar. 31, 2008 At Mar. 31, 2009 At Mar. 31, 2010
Equity ratio (%) 74.8 74.4 73.0 72.9 73.4
Fair value equity ratio (%) 156.0 103.6 70.6 58.8 64.7
Ratio of cash fl ow to interest-bearing liabilities (%) 42.2 36.2 17.5 24.1 17.1
Interest coverage ratio 88.1 125.3 166.6 200.7 250.6
Outlook for the Fiscal
Year Ending March 31,
2011
Against the backdrop of a continu- ous recovery in the global economy, especially in emerging countries such as China, exports are expected to remain on an upward path, support- ing the domestic production during the next fi scal year. However, a full- fledged recover y of the Japanese (1) Cash fl ow from operating activities Net cash provided by operating activi- ties totaled ¥9,064 million. This was attributable primarily to deprecia- tion and amortization amounting to
¥4,676 million, a reduction of ¥2,661 million in trade notes and accounts receivable, and income before income taxes totaling ¥2,366 million, among others, despite the fact that we posted
¥1,303 million in income taxes paid.
economy will be hindered by the prolonged perception of excessive employment and capital investment. Amid this business environment, Amano Corporation and its group companies launched a new medi- um-term management plan covering a period of three years from April 2008. In line with the Group growth strategies set out in the plan, we will work to drive ongoing growth through the global development of markets and products in each of our
business fi elds and to improve prof- itability by creating new business, and committing greater effor ts to address accumulation business. The following business results are projected for the fiscal year end- ing March 31, 2011: Sales ¥83,100 million, operating profi t ¥3,200 mil- lion, ordinary profit ¥3,500 million, and net income ¥1,300 million. The above projections assume currency exchange rates of US$1 to ¥92 and
€1 to ¥123. (2) Cash fl ow from investing activities
Net cash used in investing activities declined to ¥2,412 million. This was largely due to an increase in time deposits amounting to ¥4,625 million, payment for acquisition of securities amounting to ¥2,029 million, payment for purchase of tangible fixed assets totaling ¥1,657 million, and payment for acquisition of intangible fixed as- sets amounting to ¥1,639 million,
among others, despite the fact that we posted proceeds from withdrawal of time deposits amounting to ¥5,207 million and proceeds from redemp- tion of securities totaling ¥2,000 mil- lion.
(3) Cash fl ow from fi nancing activities Net cash used in financing activities declined to ¥2,383 million. This was chiefl y due to ¥1,992 million paid as dividends.
Operating and Other Risk
Among the matters relating to the qualitative information contained in these summary fi nancial statements and relating to the consolidated financial statements, the following are those that could be envisaged as having a possible material impact on investors.
Matters that are considered to be potential risk factors in the under- taking of business by the Amano Group either now or in the future are estimated to the greatest extent possible, and the risk factors are then addressed and eliminated in the course of business activities. Matters relating to the future are those that are adjudged to be so as of the date of the release of these fi nancial results (May 7, 2010). (i) Impact on earnings due to changes in the business environ ment
The Amano Group uses its accumu- lation of unique technologies and know-how to provide customers with high-quality products, services and solutions, gaining large market shares in each sphere of business in Japan, North America, Europe, and Asia, and developing business glob- ally.
In the year ended March 31, 2010, the time information system busi- ness accounted for 75.8% of total sales, and the environment system
business accounted for 24.2%. Be- fore deduction of unallocated ex- penses the time information system business contributed 96.5% to oper- ating profit, while the environment system business contributed 3.5%. In terms of weighted average sales over the most recent five year s, time information system business accounted for 68.7% of total sales and for 71.8% of operating profi t. With respect to future risk factors, in each business activity within the time information system business segment, which accounts for a large proportion of the Group’s business, if market expansion is expected for such reasons as a signifi cant change in the demand str ucture or the creation of a new market, it can be expected that this will attract entry by entities in other industries or by other powerful competitors. In that event, if a competitor were to enter with innovative products or solutions that surpass Amano’s, the Amano Group’s market advantage would decline, and that may have a material impact on its business per- formance.
(ii) Fluctuations in exchange rates The Group engages in business activities on a global scale and has production and sales bases overseas. In view of this, the Group’s busi- ness results may be impacted by fl uctuations in exchange rates when transaction amounts overseas are converted into yen.
(iii) Information security
In order to offer system solutions and undertake the application ser- vice provider business, the Amano Group handles confi dential informa- tion such as personal information concerning customers or provided by customers. In view of this, the Group has developed a structure for the management of confi dential information, implements thorough staff training, and uses software to prevent leaks of information for the purpose of preventing network ac- cess to confi dential information and of preventing leaks of confidential information through the physical removal of data and information. To that end it has also established an Information Security Management Committee to ensure a foolproof structure. Nevertheless, in the event that an unforeseen situation were to arise, and information of the kind described above were to be dis- closed externally, resultant factors such as loss of confi dence may have a material impact on the Group’s business performance.
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Issues to Be Addressed
The Company will take the following steps to achieve the goals set out in its new medi- um-term management plan.
1) Time information systems
•Information systems business Amid continuing efforts by the labor authori- ties to more strictly monitor unpaid overtime and long working hours (overwork) in order to eradicate these practices as well as an in- creasing need to deal with risks surrounding employment, such as industrial court cases resulting from deteriorating employment conditions, there is strong potential demand among companies to establish or rebuild T&A systems. The aim is to create a company- wide labor time management system to optimize business operations by reducing working hours, improving work effi ciency and cutting costs, etc. In addition, we will aim to strengthen measures for compliance toward appropriately managing working hours. How- ever, market conditions remain tough due to sluggish demand refl ecting the impact of reduced IT investments in addition to grow- ing competition in the market. Meanwhile, the environment surrounding the business in this segment has been facing a signifi cant shift from a period of owning systems to a period of utilizing them, with an increasingly prominent movement in the industry toward cloud computing which is known as the next- generation business.
In this market environment, we will focus on spurring latent demand in our solutions business targeted at large companies by strengthening our competitive advantage with enhanced software functions, and re- inforcing our marketing structures with col- laboration between sales staff and systems engineers. In addition, we will aim to expand our Application Ser vice Provider (ASP) services business by reinforcing alliances with Group companies in Japan in order to respond to the changes of the times. To enhance the profi tability of this business, we will strictly manage revenue from our so- lutions business targeted at large companies, enhance our project management systems, cut costs by standardizing system software, and expand sales of standard software pack- ages to small and medium-scale business es- tablishments, so as to boost earnings capacity. Overseas, we aim to strengthen our custom- er base and expand distribution channels in North America, leveraging the strengths of Accu-Time Systems, Inc. which we acquired in February 2010 in the U.S. In addition, we will work on establishing a global supply
system and reducing development costs by expanding our hardware lineup. As a means of expanding our business, we will also ex- tend sales channels for software products of Horosmart, S.A. (France) across Europe and reinforce our organizational structures toward globalization.
•Parking systems business
The parking systems business continues to see moderate recovery in demand both for new and renewal projects in Japan. Amid the recovery in car sales supported by economic measures including subsidies for those who are purchasing new cars to replace their old ones, parking lot occupancy rates improved in line with increased car usage and this re- sulted in the resumption of renewal projects which had been postponed. Another factor behind the recovery is advancement in “Scrap and Rebuild” plans of unprofitable parking lots by parking management companies. In the operational environment surrounding the parking business, the number of new initiatives reflecting the motorized society has been increasing. These include measures against greenhouse gas emissions, efforts to build park-and-ride parking spaces which aim to ease traffi c congestion, introduction of car sharing services, and an increase in the charging stations for electric vehicles. As a result of the above, parking space manage- ment that focuses on the needs of parking lot users has become increasingly important. In this environment we will focus on making proposals from the customer’s perspective with an emphasis on areas such as higher profi tability and effi ciency of parking space management. We will steadily meet the needs of existing customers by offering high value-added products with network capa- bilities and in-built IT functions and forging ahead with the holistic solutions business, including maintenance and parking lot man- agement services in close collaboration with Group companies.
In the market for bicycle parks that has arisen as a result of the problem of aban- doned bicycles, we will seek to revitalize and expand the market by proactively making proposals on ecology-oriented initiatives including rental cycle and community cycle systems with the aim of reducing CO2 emis- sions. In the market for exclusive gate sys- tems controlling entry and exit to and from sites such as factories, we aim to expand the new market with the emphasis on safety and security in addition to making proposals on labor-savings and rationalization.
In order to boost profi tability, we will make efforts including standardization of special- order products, strengthening of profi t con- trol for each site and self-manufacturing of purchased products, among others.
Overseas, we aim to expand business and establish ourselves as the top manufacturer of parking systems in the North American market, leveraging the strengths of Amano McGann, Inc. to further boost sales by build- ing closer relationships with customers. With an establishment of Amano UK Ltd. in England, we aim to capture demand for replacement from existing customers and cultivate the new market in Europe by lever- aging direct distribution networks. In addition, we will strive to further expand our business in Asia with the main focus on South Korea. We also aim to secure the largest market shares in each market, proactively expanding our global operations.
2) Environment systems
•Environment systems business As manufacturers’ capital expenditure re- mained sluggish in Japan, the environment system business division continued to face a challenging business environment. This was despite a prominent recovery in demand in the electric device segment for products such as liquid crystals and semiconductors and despite moves toward resuming projects that had been frozen or postponed in the past. On the other hand, there has been a prominent shift in demand toward overseas markets as capital expenditure increases with a recovery in demand for machine tools in Asia, especially in the Chinese market. Given these circumstances, we will make ef- forts to strengthen local production capabili- ties and distribution networks in China with the aim of increasing demand in the Chinese market by extending target segments from Japanese companies operating in China to local Chinese enterprises. In addition, we will strengthen our capability of developing new products with less environmental impact, launch new products to match the reduc- tion in size and the diversifi cation of machine tools, and enhance our lineup of dust-explo- sion-proof technologies to raise safety stan- dards. We also aim to spur latent demand by expanding our maintenance business and further strengthen profit control for each site in order to boost profi tability.
In overseas markets, we will expand business in Asia by building stronger ties with over- seas Group companies in China, Thailand, and other Asian countries.
3) Human resource development Recognizing that people are the most im- portant management resource for the op- eration of our business, we have positioned human resource development as a priority issue and will focus on developing employ- ees who have no fear of change and are willing to meet the challenges.
Time Information Systems - Time Management Equipments From “Owning” to “Using” - The new cloud computing compatible “CYBER XEED T&A / HR / Payroll”
The much talked about “cloud computing service”, is a computer processing service which enables the user to use of a variety of applications through the internet. Using a web browser, various application soft- ware can be accessed and used without the possession of dedicated software and/ or networks. Amano provides an easy-to- use cloud computing service, the “CYBER XEED”, for T&A and payroll processing. When considering outsourcing operations, 3 key “CS’s” become the decisive factors; (A) Customers Satisfaction, (B) Consulting Solution, and (C) Continuous Service. By centralizing the control of “T&A, HR, Pay- roll” application databases, “CYBER XEED” can provide optimal utilization and high quality service meeting the needs for the cloud computing era.
A 3-day exposition, “The 1st Cloud Com- puting EXPO” was held from May 12th, 2010 at the Tokyo Big Site. It was the industry’s fi rst and much awaited for, expo- sition dedicated exclusively for cloud com- puting. One of Amano’s group companies, Amano Business Solutions Ltd., exhibited the “CYBER XEED” and received high evaluations from many customers.
Time Information Systems - Time Management Equipments IC card type Time Recorder Pack- age “TimeP@CK-iC” - A new “Eco” friendly T&A
The PC-interface time recorder package
“TimeP@CK” has been popular as an ef- fective tool to improve the efficiency of T&A operations by enabling the user to upload, edit and tabulate T&A data on per- sonal computers. In addition, it also offers compatibility to most payroll calculation software available on the market, allowing easy payroll processing as well. Now, a new product TimeP@CK-iC “ has been added
to the TimeP@CK series, which uses IC cards instead of time cards. While offer- ing the same easy-to-use features from
“TimeP@CK “, the IC cards used can also be used as company ID’s. In addition, the IC cards come with the industry’s fi rst car- bon offset rights (CO2 reduction credit). Each card will come with 2kg- CO2 rights. The CO2 emission equivalent of the elec- tric energy used to operate “TimeP@CK- iC”, will be offset by Amano. This partial offset by Amano will contribute to lower- ing the customers’ total CO2 emissions. A design that would further encourage envi- ronmental consciousness, was adopted for the IC cards. Carbon offsetting products and services similar to this is increasing recently.
Parking Systems
The keyword is “Vehicle Identifi cation
& Control” - Rising demands in the exclusive gate system market
Currently, the installation of gate systems with vehicle identifi cation and control func- tions is progressing not only for general public parking but also parking for “specifi c vehicles”, and for this reason, the market demand for exclusive gate systems is ris- ing. For example, at university campuses, the system is used for controlling vehicles of “employees and students”. At hospital parking lots, in order to secure parking spaces for doctors and hospital employees separately from general visitors, it is used to control “specifi c registered vehicles”. At station fronts, for “registered taxi control”, and at highway tollgates, exclusive gate systems are used for securing “employee safety”. In addition, at business sites, the system is used for checking “operational vehicles” at the entrance gates, and se- curity control at research facilities. As described, the purpose for exclusive gate
systems is to achieve “labor effi ciency” and
“rationalization”, but its application is not limited to restricting / controlling vehicles, the demand is also spreading to safety and security.
“The ticketing / exit pay system for fl ap-lock parking”-Synchronizing the fl ap-lock exit pay stations with the tick- eting stations
February 2010, the new ticketing / exit fare system for fl ap-lock parking, which synchro- nizes the fl ap-lock exit pay station with the ticketing station, was installed at a city hall in Kanagawa prefecture.
In order to effectively use small sites for park- ing, the gateless Flap-lock parking systems are commonly installed for its simplicity. Flap-lock parking is a system whereby a fl ap, located on the ground, rises automatically after the vehicle stops at a designated position, which locks the vehicle. When exiting, entering the parking space number and paying the fare at the exit pay station will release the fl ap- lock. Parking systems at many city halls and other public facilities utilize ticketing systems for their dedicated parking lots, whereby, the user presents the ticket at the offi ce or booth of intention and receives a parking discount voucher. However, due to being ticket less, the conventional fl ap-lock systems did not allow such discount services. The new ticketing / exit fare system for fl ap-lock parking, now allows system combination with ticketing systems and the user can now benefit from such discount services. In ad- dition, the parking space numbers are now recorded on the tickets, which will eliminate fare errors at the exit pay stations.
Environmental Systems
Environmental systems, answering to the rising demand for standard dust collecting equipment in Asia
Up to now, Amano has expanded its markets by establishing subsidiaries in the Asian region (Malaysia, Singapore, Indone- sia, Thailand, Korea, and China) to capture Business Activities
CYBER XEED
Comes with car- bon offset rights
“TimeP@CK-iC”
Gate system for “specifi c vehicles”
Flap-lock ticketing station GT-2750 Flap-lock exit pay
station FT-4800
the demands for environmental products. Recently, both Japanese and local compa- nies have increased production capabilities in China raising demand for machine tools and along with it, the demand for standard dust collecting equipment at factory sites are also on the rise. In order to capture this demand in China, Amano has; (A) Established a specialized organization to provide information, develop new custom- ers and sales channels, (B) enhanced the sales, engineering, and service structure of the Chinese subsidiary.
The compact pneumatic conveying sys- tem for powder and granular material, the “FPV series” and the testing plant aimed at the food and pharmaceutical industry
The transportation of raw material, such as beans and fl our, for food and pharmaceuti- cal industry requires more hygienic and technical considerations compared to that of general powder and granular material. Amano’s compact pneumatic conveying system for powder and granular material, the “FPV series”, is capable of hygienic transportation of material without reten-
tion or accumulation using air. The main body can be easily disassembled without tools and it is water washable.
Tests using the latest “testing plant for pneumatic conveying systems for powder and granular material” at our Hosoe facil- ity, is showing a marked increase not only for general material but also the sanitary line designed for testing transpor tation of contamination susceptible food and pharmaceutical material. Amano is actively expanding into the food and pharmaceuti- cal industry, using the know-how accu- mulated through the many installations of environmental products to the automobile, electric and machine, chemical industries.
Cleaning Systems
Expanding the market with the auto- matic fl oor scrubber with sweeping function
From the portable light weight & compact models to the ride-on models, suitable for large areas such as large commercial facili- ties, factories and warehouses, airpor ts, stations, and other public facilities, Amano provides a wide range of automatic fl oor scrubbers known as “Clean Burny”, which have received high evaluation.
The conventional method of cleaning com- mercial facilities such as shopping malls, major supermarkets, large DIY centers (with fl oors using plastic tiles, ceramic and stone materials), and hard fl oors in facto- ries (painted concrete), required two steps. Grit and dust must be removed prior to cleaning.
The new “SE-430eSW” launched Febru- ary 2010, comes with a specially designed sweeping brush, which will enable the user to sweep and clean simultaneously. By reducing operational man-hour, it is anticipated that the demand for this new automatic scrubber to rise as an effective tool for reducing cleaning costs.
Domestic Group Companies With abundant knowledge growth contin- ues “Amano parking administration and management services” - Amano Manage- ment Service Corporation
Amano Management Service Corporation (AMS hereunder) is a domestic member of the Amano group. It operates by receiv- ing consignment contracts for “parking administration” and “parking management” and ever since the ser vice star ted, the numbers of contracts have been increasing steadily.
For parking management, the keywords are “operational effi ciency” and “improved profitability”. Through stronger alliance with AMS, Amano is providing total solu- tions for parking management (“parking administration ser vice ” and “parking management service”). Depending on the
customer’s operational and administrative situation, Amano will implement optimal service and give appropriate advice, such as cost reduction measures, in accordance with their needs.
In addition, by strengthening effor ts to engage PFI projects and “designated ad- ministrator system”, which are measures implemented by the local municipalities to promote the consignment of municipal parking to the
private sector, Amano antici- pates contin- ued growth in ser vice con- tracts.
Overseas Group Companies Aquired Accu-Time Systems, Inc., - Ex- panding sales channels of Time Informa- tion business in the U.S.A.
Februar y 2010, Amano acquired Accu- Time Systems, Inc. (ATS hereunder), a company based and located in Connecti- cut U.S.A. ATS is a leading company in manufacturing and sales of terminals for time information and T&A. in the U.S. It also operates in Europe through its sales offi ces. ATS is renowned for having a high quality customer base and is highly evalu- ated as a company that provides innovative and precise solutions With this acquisition, Amano has inherited the diversifi ed range of time information and T&A products to- gether with its quality customer base and by combining it with Amano’s sales chan- nels, it is anticipated that the synergy effect will accelerate the time information busi- ness, thereby expanding Amano’s market presence in the U.S.
The test line for sanitary transportation The compact pneumatic conveying system for powder and granular material, the “FPV series”
Automatic fl oor scrub- ber with sweeping function SE-430eSW
AMS Customer Support Center
Accu-Time Systems, Inc. website http://www.accu-time.com
Amano USA Holdings, Inc.
Amano USA Holdings, Inc. and all of its subsidiaries are focused on pursuing its goal “to achieve sustainable and profi table growth and be the very best in our cho- sen markets”. This goal requires constant innovation in the design and
development of our products, and the provision of superior service to our cus- tomers.
Amano McGann, Inc. – Parking Engineering in Motion
The year 2009 was marked by the integration of the ACI parking engineering into AMI to allow for effec- tive focus of resources for current business operations (maintaining products, enhancements and customs) and R&D (building for the future) in support of sustain- able growth and market leadership.
Product Development Development of the AMG7800 Pay Station with its new aesthetic design and smaller footprint was completed and generated much interest and excitement in the industry. Also completed was the develop- ment of an imaging scanner Hot-
pocket option for lane devices providing end-user’ s with the ability to create their own applications that
interface with iParc Professional system.
2009 marked the start of the de- velopment of new advanced com- munications hardware supporting VoIP and compressed video with the intent to reduce parking instal- lation time and cost.
Success Stories Amano McGann con- tinued its success in adding notable proj- ects that include; Sea World Renaissance
Orlando, Florida; CNN Center, Georgia; Duke Univer- sity, North Carolina, Chicago Greenway Project and multiple projects from the prestigious Irvine Company Offi ce Properties portfolio-Irvine, California.
AMI made 2009 a strong y e a r f o r g r o w t h i n t h e A i r p o r t m a r k e t . M a j o r installations in that market included Bangor Airport, Maine; Colorado Springs, Colorado, Kahului Airport (Maui), and T.F. Green Airport-Providence, Rhode Is- land, which included the fi rst implementation of license plate recognition (LPR).
Increased success was experienced with specialty products focused on the hospitality industry such as Valet and Hotel PMS integration.
The company continued to strengthen its position with professional sports venues and convention centers with the enhanced Special Event System. Key wins
included Citi Field (New York Mets), Dallas Performing Arts Center, and City of St. Paul.
Best In Show Through its participation at the major Industry tradeshows, AMI re- ceived the prestigious
“Best in Show” award at both the International and the National Parking Shows. The theme was coordinated around a yearlong marketing cam- paign designed around Amano McGann com-
missioned artwork by local Artist Michael Birawer. Amano Cincinnati, Inc. – Time & Secu- rity Division
New Product Launch
The FPT-40 Fingerprint terminal, designed to eliminate “buddy punching” through fingerprint recognition, was introduced to retail (Sam’s Club and Costco). Costco agreed to sell TCX-45 in their retail stores across Canada. ACI launched the TS-3000i, a turn-key web based clock that provides users with automatic time synchronization for validated time.
Amano introduced Nexus 220, the next generation in access control by bridging the gap between small and medium access applications.
Product Development
2009 marked the start of several product development projects including Nexus Lite, an entry level access control system providing advanced features at a competitive
price. Also in development was Time Guardian Plus, the next genera- tion time & attendance software with access control integration. Success Stories
Fastenal, an international reseller of industrial and construction supplies a fortune 1000 company and a member of the S&P 500 now carries the Amano line of time products via their 2,300 store locations across North America and through their online store. UBS Financial Services purchased the new TS-3000i Time Sync Clock for their locations across North America.
ACI installed the fi rst integrated solution with AmanoNet and iParc at Esperante Corporate Center in West Palm, Florida. Other major Security Systems installations include: Jay County Hospital with the implementation of a 29-door Nexus 220 system and Medic 911 in Charlotte, with the implementation of a video management system using Amano’s new Digital Video Management NVRs and software.
ACI delivered the fi rst fully integrated solutions with the installation of Time Guardian PRO, Nexus 220 and Amano McGann Park- ing equipment to Goglanian Bakeries of California.
Successes In Latin America
ACI successfully in- stalled solutions in Latin America including the World Trade Center i n S a n S a l v a d o r , E l Salvador. A new dealer agreement with Sharfstein has generated multiple or- ders with Universities and shopping malls across Chile. Amano Pioneer Eclipse – Cleaning Technologies New Leadership
Thomas Benton was appointed President & CEO of Amano Pioneer Eclipse, Corp. With over 20 years in the cleaning industry, Tom is very focused on building growth and profi tability through new products, new channel to market and geographic expansion. Continuous Development
APEC continued the advanced development and pro- motion of the concrete polishing brand, PowerStar, to capture growth opportunities in the concrete surface maintenance market.
APEC continuously pursue additional third party green certifi cation both domestically and internationally. New Product Launch
APEC launched the Power- Gloss concrete polishing pads which are part of the Power- Star Concrete Maintenance Program. The new pads allow traditional floor care profes- sionals to use existing scrub- bers and burnishers to maintain and restore concrete floor surfaces.
APEC introduced the Pow- erPolish and Power PolishHT curing pads specifi cally designed for burnishing and curing top coatings on concrete fl oor surfaces.
Major Successes
APEC successfully established EnviroStar Green HS25 fi nish program with Harris Teeter, a food market chain operating over 200 retail stores nationwide. APEC expanded Dade Paper relationship to two ma- jor markets in Florida and Alabama.
APEC also secured the propane business with Food City food stores, one of the largest independent gro- cery chains in Kentucky, Virginia, and Tennessee with 93 stores.
Amano Europe Holdings, N.V.
The way Amano handled the economical situation in Europe was by being extremely cautious in its day to day business combined with a good level of agility when it came to envisioning and embracing new op- portunities as they occurred in 2009 and early 2010.
video surveillance systems. 2. Nutrixo wanted a multi-site solution.
3. Nutrixo was confident in our ability to roll our major projects, based on past experiences in the workforce management.
4. Nutrixo was looking for solutions that can be ad- justed easily to local needs of each site.
We have demonstrated our ability to manage local projects while respecting the specifications of the national project team. The customer specifically ap- preciated the daily performance of the hotline when they encountered problems of deployment and ex- ploitation. As a result of the introduction of the access control system Nutrixo could reduce in signifi cant way thefts, vandalism and burglary. They also use the real- time counting functions which enable them at any time to know who is on the premises and they saved signifi - cantly in, previously outsourced, guarding services. The system will be paid back in less than one year.
AKC developed the fi rst Parking
Location Guidance System in Korea
Parking Location Guidance System Enhance convenience and service for Customers The Information kiosk terminal shows a route from your current location to where you parked a car. This service improves the convenience of customers and working efficiency for parking operators at a large- scaled parking lot such as shopping center, airport, and major station.
Through Parking Location Guidance System, once a vehicle is parked at a space, an identifi cation camera installed in the parking lot recognizes a license plate. The data is connected to parking location data, vehicle ID number (license plate number), and vehicle image and then stored in the host system automatically. When a customer inputs 4-digit vehicle ID number at the information kiosk terminal, it shows a route from a present location to the parked vehicle.
Case Study
Times Square Parking Lot in Korea Large Commercial Complex opened in September 2009
Times Square, a large commercial complex that has department store, hotel, supermarket, movie theatre, wedding hall and restaurants opened in Seoul Korea. Amano Korea Corporation, one of the group compa- nies of AMANO Corporation, introduced the Parking Location Guidance System to a parking lot of Times Square for the fi rst time in Korea.
Central in the policy has been the strong believe in our ability to serve the existing customers as a stable base to create future growth. A restructuring plan has been executed in Spain, an investment plan is put into place for the new parking product range, X-Parc, Amano started direct sales activities in the UK, Amano bought two companies in France to enforce its position in the card printing business and we noted steady invest- ments and growth
in the Work Force Management sec- tor. We are ready to cope with the challenges of the next years. WFM
The growing percentage of big and international ac- counts in the customer portfolio of the workforce management market is an indication that Amano is on the right track in its ambition to become a major European player. Internationalization combined with a strong focus on support, a profound knowledge of local customer needs and the ability to offer integrated solutions between facilities [parking, access and secu- rity] and people [workforce management and user identity management]
solutions is the corner- stone of our strategy and the key of the success. New partnerships will enforce Amano’s posi- tion in Europe. PARKING
A similar tendency and policy is applied in the parking business. X-Parc is positioned in the market as a solu- tion rather than being just a range of products. It is our answer to fast evolving market needs both in the area of mobility and finance. Indeed, as parking solution provider we will offer fast and seamless integrations with governmental and private initiatives that seek solutions for modern urban mobility challenges, ease of use and the tendency to integrate a multitude of payment methods.
ACCESS
Amano doesn’t occupy a significant percentage in the European access control market nor is it active in the indirect sales of its access control products. Focus however is set to direct sales and to a tight integration with Amano’s other competences in people manage- ment and parking control. Amano will continue to sell and support access control solutions with this strategy in mind. As an example
of this we refer to the included success story of Nutrixo group in France.
SUCCESS STORY
The European leader of Milling and Bakery, including the “Grands Moulins de Paris”, the group Nutrixo includes 60 production sites in Europe and 5,000 employees. In order to strengthen the security of its sites Nutrixo quickly focused on our access solutions
“Protecsys” for the following reasons:
1. Nutrixo wanted a single supplier and integrated solution for time management, control access and
Times Square Parking Lot Korea Parking Lot Form Basement Garage (3rd to
5th basement fl oor) Accommodation 1800 cars
Parking lot Management Amano Korea Corporation Number of staff 82
Entrance and Exit 4 entrances and 4 exits Entrance and Payment
Method
Issues a ticket at the en- trance, 4 Automatic Pay System and Attended Exit Pay System
Management System
•License plate recognition and parking lot guidance system with Kiosk termi- nals.
•Parking lot management system by ultrasonic sen- sor. (50 units)
•Exit vehicle confirmation system.
•Store discount system by AR150 etc.
Parking Location Guidance System An image of a vehicle will be displayed when a cus- tomer enters 4-digit vehicle ID number from the “in- formation kiosk terminal” (touch panel). The customer confi rms the vehicle image and presses the location button and then the vehicle parked area and a route from a present location are to be displayed. Parking Fee Discount System 2 discount systems are available
① Online discount system utilizing receipt bar-code issued at department store or discount store
② Store discount system using automatic encoder for store validation “AR-150”
(fi rst overseas introduction)
System Confi guration
Yen in millions and U.S.dollars in thousands, except per share amounts - See Note 5 to the Consolidated Financial Statements.
Note: U.S.dollar amounts have been translated at the rate of ¥93 = US $1, the rate prevailing on March 31, 2010. -See Note 5 to the Consolidated Financial Statements.
AMANO Corporation and Subsidiaries
Financial Highlights
For the years ended March 31, 2010 and 2009.
2010 2009 2010
For the years ended March 31:
Net Sales ... Net Income ... Per share data (Yen and U.S. Dollars):
Net income per share (Basic) ... Cash dividends per common share ... At March 31:
Total assets ... Working capital ... Total net assets ... Sales by product:
Time information systems ... Time management equipment ... Parking systems ... Environmental systems ... Cleaning systems ...
'09 '07 '08
'06 '10
Net Sales Net Income Net Income Per Share
'09 '07 '08
'06 '10 '06 '07 '08 '09 '10
(Millions of Yen) (Millions of Yen) (Yen)
0 10000 20000 30000 40000 50000 60000 70000 80000 90000 100000
0 1000 2000 3000 4000 5000 6000 7000
0 10 20 30 40 50 60 70 80
¥78,586 1,011
¥13.20 26.00
¥100,687 35,312 74,968
¥17,440 4,316 37,786 11,521 7,523
¥91,812 2,214
¥28.14 30.00
¥102,192 32,456 75,395
¥19,848 5,361 38,968 19,066 8,569
Millions of Yen dollars (Note 5) Thousands of U.S.
$845,011 10,871
$0.142 0.280
$1,082,656 379,699 806,108
$187,527 46,409 406,301 123,882 80,892
①
②
AMANO Corporation and Subsidiaries
Consolidated Balance Sheets
As at March 31, 2010 and 2009.
ASSETS 2010 2009 2010
Current assets:
Cash and bank deposits ... Marketable securities ... Notes and accounts receivable:
Trade ... Less allowance for doubtful accounts ... Inventories... Deferred tax assets ... Other current assets ... Total current assets ... Property, plant and equipment at cost:
Buildings and structures ... Machinery and equipment ... Lease assets ... Less accumulated depreciation ... Land ... Construction in progress ... Total property, plant and equipment ... Intangible fi xed assets :
Goodwill ... Software ... Software in progress ... Other intangible fi xed assets ... Total intangible fi xed assets ... Investments and other assets:
Investments in unconsolidated subsidiaries and affi liates ... Investments in securities ... Leasehold and guarantee deposits ... Deferred tax assets ... Other assets ... Less allowance for doubtful accounts ... Total investments and other assets ... Total ...
¥23,676 1,227
21,134 (214) 20,920 6,016 1,106 1,790 54,735
27,803 19,643 1,711 49,157 (33,445) 15,712 7,161 83 22,956
6,777 4,174 279 672 11,902
803 3,712 1,093 2,334 3,626 (474) 11,094
¥100,687
¥18,720 1,192 23,651 (199) 23,452 6,485 1,313 1,478 52,640
26,187 19,156 810 46,153 (31,720) 14,433 7,156 1,258 22,847
7,402 4,357 1,145 632 13,536
1,177 3,347 1,099 2,599 5,402 (455) 13,169 ¥102,192
$254,581 13,194
227,247 (2,301) 224,946 64,688 11,892 19,247 588,548
298,957 211,215 18,398 528,570 (359,624) 168,946 77,000 893 246,839
72,871 44,882 3,000 7,225 127,978
8,634 39,914 11,753 25,097 38,990 (5,097) 119,291
$1,082,656
Millions of Yen dollars (Note 5) Thousands of U.S.
The accompanying notes are an integral part of these statements.
