FINANCIAL REPORT
April 2000 – Marc h 2001
Management Policy 2
Management Performance 4
Domestic Marketing 8
Overseas Activities 10
Financial Section
Financial Highlights 16
Consolidated Balance Sheets 17
Consolidated Statements of Income 19
Consolidated Statements of Cash Flows 20
Consolidated Statements of Shareholders' Equity 21
Notes to the Consolidated Financial Statements 22
Corporate Data 32
C O N T E N T S
1. Basic Management Policy
Since it was founded, Amano' s first priority has been placed on the maximum customer
satisfaction with all staff of its sales, production and development divisions hearing the
voices of its customers, and placing the utmost importance of its all business activities
under the theme of "people and time" and "people and environment". Under this funda-
mental policy, Amano has been making strenuous efforts in continuing its business ac-
tivities to be highly trusted and evaluated by all people, including its "customers, share-
holders, business connections, employees and society" that is supporting its business,
through providing diversified products, systems, services and solutions relating to "people
and time" and "people and environment" and meeting needs of customers.
2. Basic Policy regarding Dividends
Amano makes it a rule to offer reasonable dividends to achieved performance, as a
dividend policy tow ard our shareholders, w hich has been one of the most important
subjects. In the meantime, since 1998, as a policy of passing earnings to our sharehold-
ers, Amano has started redeeming and retiring its ow n shares by using the retained
earnings, which amounts to 3.4 million treasury stocks as at the end of March of 2001,
and will continue the redemption during and after the next fiscal term.
Dividends to shareholders shall be paid on the basis of 35 percent pay-out-ratio, and
Amano will try its best to realize 2 percent dividend rate for the medium term. Regard-
ing the dividend for the current term, the annual dividend will be 13 yen per share just
as the same as the previous term, and deducted by 6.5 yen per share for the medium
term, the dividend for the end of the term will be 6.5 yen per share. Retained earnings
shall be used for effective investments to strengthen management system such as proac-
tive investments in new as well as growing businesses and in the research and develop-
ment activities while reducing costs, and streamlining production facilities for quality
improvement.
3. Medium and Long Term Management Strategy
Amano and each one of its affiliated companies are expanding and strengthening its
base of business as a solution provider enhancing its value for customers, by supplying
high quality hardw are, softw are and services in line w ith the changes in needs and
diversification in the 21st century information-oriented society.
Also Amano makes it as its key management concept to stay as "a blue-chip and grow-
ing company" for our shareholders and investors. Based on this concept, Amano makes
it as its major management strategy to maximize business value through expansion of
the already existing business through promotion of information technology-oriented
Management Policy
system and aggressive operations of new business w ith its core being IT and parking
system business, with a view to increasing company' s profitability and brightening pros-
pects of growth. To achieve this end, Amano has established "a three-year medium term
management plan" from 2000 through 2002.
Specifically, on the basis of customers accumulated over the years in the areas of the
existing sales operations, Amano w ill (1) set up a U pgrade & Accumulation Business
through introduction of products and services with its originality and (2) actively carry
out operations to develop new markets through introduction of Internet e-business such
as net-sourcing for "Time & Attendance," "Human Resources (HR)," "Payroll" manage-
ment, and application service provider (ASP), Time Distribution Services, and parking
lot information service, etc.
On the other hand, Amano will be actively to beef up software developing system capa-
bility on a global basis w ith a leading-edge information technology for research and
development efforts, thereby realizing early introduction of new products into markets.
In the aspects of costs of products, Amano will do everything possible in its ability to
reduce total costs through (1) profitability improvement by maintaining only profitable
business in respective business divisions, (2) further reduction of production costs, (3)
innovation of purchasing method for cutting costs of procurement and (4) dow nright
curtailing of various expenses.
Amano will exert its utmost efforts to carry out the medium-term management planning
through implementation of the above policies.
Yasuyoshi Komoto
President and CEO
G ener al C onditions of
the Current Term
Supported by positive private sector capital investments in IT related in- dustries such as of semi-conductors and electronic components, Japanese economy during the current term was slowly recovering, but since the latter half of the last year, uncer tainty over the course of economy has been mounting in the whole industries due to inventor y adjustments in the in- formation-related businesses and slowdown of the U.S. economy, which is also affecting economies in Asia and European countries.
U nder such adver se management environment, Amano has been en- deavoring to strengthen its ser vice capability with active business opera-
tions with each one of its Informa- tion and Parking business divisions to introduce new products and software into markets. Also for improvement of its profitability, each one of its sub- sidiary companies has been trying to keep economically viable basis by streamlining its management through cost-reduction measures.
In the aspect of business performance, sales volume was 61 billion yen (up 13.1 percent from the same period last year), operating profits 5,303 mil- lion yen (up 7.3 percent), and ordi- nary profit 4,988 million yen (up 27.2 percent). In addition to appraisal loss of 235 million yen in golf cour se membership and loss of 269 million yen from written-off fixed assets, ex- traordinary loss of total 587 million was posted, which resulted in reduced net income for the current term to
2,465 million yen, down 7.9 percent from the previous period. In the meantime, w ith fiscal term having been changed from March to D ecem- ber for overseas subsidiaries in the previous term, the fiscal term for the overseas subsidiaries reflects the ac- count for 9 months.
Business Review
Since the fiscal term for the overseas subsidiaries reflects for 9 months as mentioned above, comparison with the previous term is for reference only.
Sales by business division
(Unit: In millions of yen)(Time Information System Business) Information Systems
Time Management Product Parking Systems
Sub total:
(Environment System Business) Environmental Systems Clean Systems
Sub total: Grand total:
Division
Previous Consolidated Fiscal Year
Change
Amount
10,360 8,922 19,671 38,953
12,580 9,567 22,147 61,100
17.0 14.6 32.1 63.7
20.6 15.7 36.3 100.0
9,856 8,679 16,774 35,309
10,267 8,441 18,708 54,017
18.2 16.1 31.1 65.4
19.0 15.6 34.6 100.0
504 242 2,897 3,645
2,312 1,125 3,438 7,083
% 5.1 2.8 17.3 10.3
% 22.5 13.3 18.4 13.1 Component Ratio Amount Component Ratio Amount Change in Ratio April, 2000 to March, 2001 April,1999 to March, 2000
Current Consolidated Fiscal Year
Time Information System Busi- ness
Information System :
Time & Attendance (T & A), Payroll, H uman Resources Management, Ac- cess Control, Canteen System. Time Management Product : Time Recorder, Time Stamp. Parking Systems :
Par king M anagement Equipment, Management Services.
Time Information System business : Sales of 38,953 million yen.
Information Systems For H uman Resources (H R) business, it is very impor tant to build an inte- grated system, which works with real time with T & A information and Pay- roll information organically in network environment such as LAN and W AN .
Affected by the upgrade demand for Y2K last year, orders for the TimePro- Get for medium-and-small business offices became slow until the third quar ter, but release of the "Leave-it- to-me" Pack with an added value of a terminal, per sonal computer and maintenance service in one package, which come with the software TW 30/70 for small-and-medium busi- nesses was accepted as a set prod- uct meeting needs of customers, cre- ating demands of bottom market. As a result, since we entered the four th quar ter, demands have been recov- ering rapidly mainly for the products
developed for small-and-medium businesses. As the integrated system of "T & A," "H R" and "Payroll" man- agement together with "large-scale network compatibility" gained in- creased market awareness, TimePro- Get developed for companies larger than the medium size, was also widely accepted in the market, resulting in orders in the amount of 3 billion yen during this term. Thus sales achieved by the Information System Business D ivision amounted to 10,360 million yen.
Time Management Product In the domestic market, as custom- ers using the intelligent time recorder (featuring summar y print capability) upgraded to Information Systems and as low-priced small type units became a drive force, the distribution system was substantially changed in the sta- tionery and office machine industries, which forced major manufacturers to make inventory adjustments. U nder these circumstances, order s de- creased both in amount and quanti- ties.
Like in the domestic market, the workhorse in N or th A merica has been shifting to low-priced small type units. In the Asian regions, the busi- ness grew during the medium term par tly because the local economy picked up, but it was affected by the U .S. economic slowdown since au- tumn 2000, with the demands star t- ing to decline. Consequently, this busi- ness division posted sales of 8,922 million yen.
Parking Systems
In the domestic market, demand has grown with more unused lands be-
ing utilized for running parking lots and more companies having par tici- pated in the supermarket business since the law governing the large-scale retail stores location was enforced and more stores were reformed to have a parking lot. Also new compa- nies emerging for parking manage- ment have contributed to the growth of the demands, and revitalize of the whole market.
O ur parking systems such as a pay- ment machine of low-prices for flap type parking systems used for me- dium and small parking lots, which ac- tivated the demand, and our payment machines with built-in computer used for entrance and exit control of a parking lot introduced into the mar- ket last O ctober, the first of its type in the industry, were widely accepted as the products meeting the require- ments of the customers, which greatly contributed to the high level of per- formance. In the meantime, coupled with the number of such delivered systems increasing, those maintenance ser vices have been also steadily grown.
Also our M anagement Ser vices for parking facilities have continued to grow with tailored management so- lution menu given to our customers.
W hile sales competition in the N orth American areas has become more fierce, there is a solid potential de- mand there. In the Singapore and H ong Kong markets where cash-less payment systems are widely used, our managing systems get well with this trend, and have resulted in a good business performance. In the Euro- pean market, however, the business
Proximity Attendance Terminal
has not grown because of delayed de- livery of the systems to meet satisfy customers' requirements.
Such being the business status, sales by this business division turned out to be 19,671 million yen.
Environment System Business Environmental System :
Standard D ust Collectors, Large D ust Collectors, Pneumatic Powder Con- veyance Systems, H igh-Temperature H azardous G as Removal Systems, D eodorization Systems, Sanitation (Food Sanitation M anagement) Sys- tems.
Cleaning System :
Vacuum Cleaners, D r y-Care Clean- ing Systems, and Cleanliness Manage- ment Systems.
Sales by Environment Systems D ivi- sion were 22,147 million yen.
Environmental Systems D ue to active capital investments by the industries of information, elec- tronic parts and semi-conductors and consequent expansion of their sup- porting industries, standard dust col- lectors continued to grow steadily with increased demand through the latter half of the fiscal year.
Environmental System D ivision has addressed "customized" standard dust collectors to meet diversified needs in customer applications and invite more orders. D emand for the Air Shower that was developed and in- troduced into the market as a par t of this project, to remove dioxin from worker's clothes, has greatly increased mainly from such outlets as cleaning factor y, plant manufacturer s and maintenance business. Also demands for the medium-size dust collectors designed to meet the tightened di- oxin regulations grew remarkably from incinerator dismantling and re- pair work-related business markets. W ith these factors, the standard dust collectors formed an increased pro- por tion of the sales of this business division.
D emands for the large dust collec- tors have steadily increased mainly from recycle centers following the enactment of the packing container and home electric goods recycling ordinance and from incinerating fa- cilities in addition to the upgrade de- mands fro m car manufact urer s, foundries and building materials in- dustries.
As a result this business division found sales of 12,580 million yen.
Cleaning Systems For super market and convenience stores industries, it has become im- por tant to maintain a beautiful floor (clean and glossy) to attract custom- ers. Also, in the building maintenance industries, demands for high-perfor- mance, large cleaning system have been growing for labor-saving, higher efficiency and reducing operation costs to meet diversified customer's needs for high-quality floor cleaning at lower costs.
O ur "Floor Cleanliness System" has steadily created its demands meet- ing the diversifying needs of the mar- ket. As the upgrade market for the buffing machine for convenience stores has become saturated, the number of the total units sold by this business division increased slightly, but having made a success in introducing a new machine w it h a pro pane mounted and a high-performance cleaning machine with improved func- tionality, this business division was able to increase sales over the previous term. The new propane-mounted buffing machine and chemical prod- ucts manufactured by Pioneer Eclipse, our subsidiary company in the U.S., a specialist in manufacture of cleaning machines and chemicals, are distrib- uted in our domestic market through our sales channels, contributing to the sales growth.
Sales performed by this business di- vision amounted to 9,567 million yen.
Electric Type Mist Collectors with a high density Flap type pay station
Prospects for Corporate
Earnings in the N ext Term
Affected by the U.S. economic slow- down coupled with the slowdown of the Asian economy, the Japanese IT- related businesses supplying elec- tronic parts and semi-conductors, etc., are expected to remain mired in re- cession, with uncer tainty over the fu- ture of the Japanese economy likely to continue for the time being.
Amano, however, will continue invest- ing management resources in the growing projects of the information systems, parking systems, and new business projects that use Internet, with the objective of becoming more solid "Growing" company.
Fur thermore, we will continue carry- ing out aggressive sales campaign stay- ing in closer touch with requirements of our customers, filling out and rein- forcing our lines of software, devel- oping more products w ith highly- added values, and providing compre- hensive solution ser vices, while ex- e r t ing o ur ut m o st e ffo r t s t o strengthen managing capability of our subsidiaries and enhance profitability by reducing costs and maintaining profitable lines of business.
C arr ying out w hat we have men- tioned above, we expect to achieve business results in the next term as follows : sales volume 64 billion yen (up 4.7% from the same period last year), operating profit 5.7 billion yen (up 7.5%), ordinar y profit 5.7 billion yen (up 14.3%), net profit in the cur- rent term 3.2 billion yen (up 29.8%).
N ew Pr o duct : T ime
P@ CK - Time Recorder
Featuring Time Summary
Report Software
N ew Project : "Kyuyo-
Toban" - Internet Payroll
Calculation Services
T he number of internet users has dramatically increased as the ship- ment of PC increased. Even small to medium sized companies with some 30 employees access Internet. T he "T ime P@C K - T ime recorder with time summary software" is a new product, easy to use on a PC . It is designed to simplify time card data and make the tiresome task of calcu- lating payroll as easy as possible. T he T ime P@C K combines "T ime Recorder" ( hardw are) , T ime card summar y softw are "Satto-Keisan" (software) "Solution Service" into one package. These are ideal for custom- ers of small to mid-size firms with 10 to 30 employees. Time P@CK also serves as a useful guide and business model for customers running their business over the Internet.
At the same time, we star ted a new project for E-business oriented small
& mid-sized firms called "Kyuyo-Toban Internet payroll calculation ser vice" for * ASP projects.
Regular sales have already started at stationary and office machine supply outlets across the country. Shop sales have also star ted in a business soft- ware corner at PC and home appli- ance retailer shops in large cities and metropolitan areas, and it is accepted with growing popularity.
T he "Kyuyo - To ban" a new pillar project of AM AN O and new Time
P@C K are available at your shops nearby.
First in Japan ! Star t of
"e-timing" N etwork Time
Clock & Verification Ser-
vice !
This year is the 70th anniversar y of AMAN O Corporation. The time re- corders offered by AMAN O now in its 70th year, coming at the star t of the new century really does "ring-in" the star t of a new era.
Time recording gradually developed from hand written records to the time stamp (mechanical - electrical -
computerized time stamps). N ow in this era of the Internet, a new type of time stamp is available. This method uses PKI (public key information) to verify names electronically, not just by printing on paper but by adding time verified by a third party to digital data. The spread of the Internet means that time data now instantly crosses na- tional borders and that transactions are made and recorded at an inter- nationally recognized time (UTC : co- ordinated universal time per world- wide treaty).
The e-timing N etwork Time Clock & Ve r ificat io n Se r vice o ffe re d by AMAN O , is truly the "time solution" needed by digital networking compa- nies. This project, the first of its kind in Japan, is in effect a time manage- ment outsourcing service for custom- ers (per server of contracted user). Free time service star ts from January, and regular pay service star ts soon. Keep your eyes on our highly rated
"e-timing N etwork Time Clock & Veri- fication Service" you'll be seeing a lot of us from now on !
* ASP : Application Ser vice Provider - Ser vice for time-leasing of software over the Internet.
Client PC (Child)
Time information system
Time stamp
B IP M
Client (Parent) Client user
N IS T
Network Monitoring Time source calibration (Common View system) Remote clock monitoring (clock precision within 100 nanoseconds)
GPS satellite
Internet
Trac eabi
lity
International Bureau of Time (BIPM)
National Institute of Time (USA NIST)
Commercial Time Verification Agency (AMANO e-timing)
Client User (Trusted Local Clocks / Trusted Time Stamps)
AMANO timing center
Public phone lines Dedicated lines
Internet
Dedicated lines
AMANO monitoring station
Time synchroniza-
tion report Time verification server
(Dedicated NTP server)
Parking Systems for the
21st Century
Along with the evolution to pay park- ing lots and the buildup in city and metropolitan areas, AMAN O Parking Systems star ted by recording vehicle time in parking lots with time stamps. T his t ime regist r at io n gr adually evolved from use in pay parking to automated parking lots, and then to fully automated lots, and finally to sys- temization (remote management). Key concepts for the 21st C entur y parking systems will be (1) ITS : intel- ligent transport systems for sophisti- cated road traffic systems, (2) Cash- less society for diversified payment methods, (3) N etwork system com- patibility, and (4) Systems that are environmentally friendly, energy sav- ing and recycling.
N ew concepts among numerous AMAN O Parking Systems being de- veloped for the 21st Century include : Internet parking lot guide systems (@park)
Vehicle recognition systems using image matching technology
N on-contact IC chip recycling park- ing lot systems
These AMAN O Parking Systems will make better managed and more effi- cient parking lot systems available to us all.
N e w Envi r o nm e nt al
Product
H F SERIES - H YBRID D U ST C O L- LECTO R SYSTEM
The H F Series is a localized dust col- lector & exhaust system that works on a new push-pull concept to effi-
ciently trap dust par ticles and elimi- nate odors at locations prone to emit dust. The H F Series comes in 4 differ- ent types all available to the purchaser. In the H F Series, a por table blower with internal fan (push device) and dust collector hood (pull device) de- signed to save space are combined to efficiently collect dust and elimi- nate odors with only 1/2th the air blow force of ordinary push-pull sys- tems ! This new "Energy Saving" dust collector system meets the needs of the times with "minimal initial costs and minimal energy use".
N ew Clean System Prod-
ucts
C O M PA C T A U T O F L O O R CLEAN ER SE-430N (IC AO U S) Since it was first sold, the SE-430N auto floor cleaner has been a best seller among cleaning equipment es- pecially in the building maintenance field and in supermarkets, etc. N ow, while keeping the compact size and mobility which are its best loved fea- tures, the SE-430N has been up- graded to a w hole new design in terms of cleaning power, dir ty water suction force, and easy operability and maintenance.
A host of great features like 3-step pad pressure, newly designed squee- gee, 3-step blower force selector and
a quick-release pad changer mecha- nism that works just by pulling a le- ver (all patent pending) ensure that all your cleaning jobs will be easy ones!
U LT RA - SM A LL A U TO FLO O R CLEAN ER SE-300 "Ah-rau"
T his is an upright type auto floor cleaner and the first of its kind in Ja- pan. The SE-300 is ideal for cleaning under and around tables and chairs in narrow halls and passagew ays, where any floor cleaner has not been able to clean. The SE-300 also easily cleans places like shop floor surfaces with irregular corners such as ATMs and cash machines.
The SE-300 is gaining a lot of popu- larity because it saves water by recy- cling the soapy water and its upright style allowing to use as a mop proves truly convenient and easy to use.
SE-430N
SE-300
AMAN O ’S GLO BAL N ETW O RK
AMANO CORPORATION CSJ CORPORATIONENVIRONMENTAL TECHNOLOGY CO., LTD. AMANO MANAGEMENT SERVICE CORPORATION AMANO MAINTENANCE ENGINEERRING CORPORATION AMANO ECO TECHNOLOGY CORPORATION
AMANO ELECTRONICS EUROPE, N.V
AMANO CLEANTECH MALAYSIA SDN. BHD AMANO TIME& AIR SINGAPORE PTE. LTD PT AMANO INDONESIA
AMANO KOREA CORPORATION
AMANO INTERNATIONAL TRADING(SHANGHAI) CO., LTD. AMANO SOFTWARE ENGINEERING(SHANGHAI) CO., LTD.
AMANO AUSTRALIA PTY. LTD.
T ime G uar dian
T MEm-
ployee Time Tracking Sys-
tem
Amano Cincinnati, Inc. (ACI) intro- duced its Time GuardianTM Employee T ime Tracking System, the newest addition to their line of Time Infor- mation Systems products. Comprised of a data collection terminal utilizing employee badges and time and at- tendance software, the product is designed for companies with 100 or fewer employees who are seeking to effectively manage their workforce. T he system is sophisticated, but is both efficient and flexible enough to handle multiple pay policies, sched- ules, and departments.
According to the American Payroll Association, manual calculations usu- ally incur a minimum 1% error that over the course of a year can result in thousands of dollars in lost profits. Time Guardian reduces this risk while boosting a company's overall effi-
ciency. In addition, the employee badge terminal, with its use of afford- able magnetic stripe or bar code badges, eliminates costly time cards. The Time Guardian software has plug and play connectors and a built-in W izard for easy installation and set- up, while its graphical user interface allows for simple editing of employee information.
The Time Guardian software also al- lows for either weekly, bi-weekly, semi- monthly or monthly pay periods, w hile calculating daily and weekly overtime hours. A variety of repor ts are available through the software, providing users with comprehensive documentation on hour s worked, exceptions, depar tments, time card
Amano Cincinnati, Inc.
ACCUTIME CORPORATION AMANO CINCINNATI,INC. AMANO USA,INC.
AMANO CINCINNATI CANADA,INC. AMANO PIONEER CREDITCORPORATION PIONEER ECLIPSE CORPORATION
information, and other variables. In addition, the Time Guardian software has five major payroll interfaces pro- vided: A D P®, C eridian®, Paychex®, Q uickbooks® Peachtree®.
AC I Launches E-C om-
merce Site, Provides Cus-
tomer s Q uick and Effi-
cient W ay to Purchase
Clock Supplies
In early July 2001, Amano Cincinnati, Inc. launched its new e-commerce sites, designed to provide its custom- ers with an easy and convenient way to order supplies for their time clocks. The sites offer a variety of informa- tion as well, including features and
specifications for both the PIX -10 and TCX -11 time recorders. In addition, purchasers of these units are able to fill out their warranty registrations on- line, download operations manuals and find instructions on programming their clock for D aylight Saving Time.
A mong the products available for purchase on-line are time cards for the PIX -10, TCX -11 and PIX -3000x, ribbons for these models, and keys and printed manuals for a whole se- ries of Amano time clocks. W hile on the site, users can view their shop- ping cart, which provides a list of items selected for purchase, or they can check on the status of a previously entered order.
The development of the e-commerce
sites once again shows ACI's commit- ment to growing with the technol- ogy of today, while providing the old- fashioned ser vice the Amano name is famous for. And the sites bring the added benefit of providing to our customers a single source that can supply all of their time clock needs.
Amano Cincinnati, Inc.
ACI E-Commerce Site
ACI'S AGP Series Parking
Producrs W ell Received
by the Market
After establishing a proven perfor- mance record, the AGP series park- ing products are now being enhanced w ith additional features, and have taken the market lead in many areas. AGP products are U L approved, and meet Amano EMC standards, increas- ing their overall acceptance in the marketplace.
AG P Entr y and Exit Stations offer ticket, access card, and Credit Card In/ C redit C ard O ut functionality.
"ExpressParc" Exit Stations allow Credit Card payment for entry tick- ets in exit lanes providing additional payment points at non-attended lanes. The ExpressParc stations allow for increased throughput in a parking facility with no additional labor costs.
AGP-5200 Fee Computers offer im- proved processing speed, laptop- grade hard drives and overall en- hanced performance and features. The Graphical U ser Interface is the recognized leader in the industr y. W hen used in conjunction with our AGP series ticket dispensers, the Fee Computer provides a comprehensive and complete parking revenue con- trol system.
AG P-7000 Pay Stations have been well received. O ne large customer with over for ty pay stations in fully unattended facilities has recently placed an order for ten additional units. The latest development, a real- time D ebit Recharge system devel- oped in conjunction with M cG ann
Software Systems, uses Ethernet con- nectivity and Active-X protocol. It has successfully been installed at three facilities in Philadelphia. W ith 24-hour operation, the Paystation accommo- dates various applications : transient, discount, service, and store validation tickets.
W ith the equipment mentioned above on display, the ACI booth was clearly the most active at the recent International Parking Institute Trade Show in Las Vegas. ACI plans to re- lease many new products in the up- coming year to both meet today's marketplace demands and the chal- lenges posed by an ever changing fu- ture.
N ew Electric Ultra H igh
Speed Burnisher, Gazelle
Fiscal year of 2000 proved to be both a challenging and rewarding year for Pioneer Eclipse Corporation. D espite dramatic changes in the in- dustry and a general downturn in the economy in the second half of the fiscal year, the company was still able to deliver a modest operating profit.
A continued emphasis on new prod- uct introduction has enabled Pioneer Eclipse to move closer toward its goal of being a total floor-care provider. A new price sensitive marketing plan
combining three new floor-coatings with existing finishes has yielded sig- nificant sales growth in chemical busi- ness, this increasing overall gross profit margins. This new program combined w ith the introduction of the new G azelle series, electric ultra high speed burnisher, has positioned the company to more effectively exploit oppor tunities in the educational and healthcare market.
The company also continues to capi- talize on the recent chaos created within the industry as a result of ex- treme merger and acquisition activ- ity, enabling Pioneer Eclipse to form many new, quality distribution alli- ances.
Strong sustained international sales growth has enabled the company to expand its sales organization with the hope of accelerating the realization of new business oppor tunities out- side of N or th America.
The combination of continued prod- uct line expansion, the addition of new quality distribution in N or th America along with continued inter- national grow th provide Pioneer Eclipse the necessary springboard for anticipated dynamic growth in the future.
New Electric Ultra High Speed Burnisher, Gazelle Pioneer Eclipse Corporation
Amano Cincinnati, Inc.
AGP Series Products
Full Product Line-up for
the Access Control Mar-
ket
From an extension of our main Time
& Attendance business, we are mak- ing serious effor ts to cultivate highly potential market of "Access Control Market." W ith a full product line, six terminals are newly released and in- terfaced with readers. In addition, "Job C osting" software will soon be an- nounced, thereby making a full set of
"Time & Attendance," "Access" and
"Job Costing," securing a position of market leader.
Time & Attendance Termi-
nal fo r W hit e C o llar
W orkers
The "white collar" workplace which traditionally does not use time re- corders, is a source of huge potential sales. A mano offers software de- signed for this "white collar" market. O ne such example is a "Vir tual Ter- minal" which can turn an ordinary PC into a Time & Attendance terminal. All information such as "IN /O UT" and
"Break" is entered through the virtual terminal on the computer screen. W ith highly versatile features, which may easily extend to "Job M anage- ment," it is likely to open up new potentials.
Amano Parking Payment
Machines in U se at D eg
Airport
M ore than half of the parking pay- ment machines used at 10 airpor ts in Korea are made by Amano. The Amano parking payment machines at D eg Airpor t will be a big drive force to strengthen sales in that region. After 40 years since its first opera- tion, D eg Airpor t recently renovated itself, which completed May 17, 2001 and restar ted as a new "International A irpor t". T he recently completed D eg International Airport offices take up one floor below ground level and 3 floors above ground level for use for passenger terminals of the domes- tic and international airpor t.
Parking payment machines are lo- cated at 4 entrance points and 5 exit points to handle a total parking lot capacity of 695 spaces (350 spaces at the new office parking lot, 345 spaces at the old office parking lot). The parking lot designed for auto- mated parking lot systems, can ac- commodate large vehicles (buses and trucks, etc.) with lanes installed with double deck ticket dispensers and exit ticket readers.
Three automated parking payment machines are located in the passen- ger terminal, so the customer can pay his parking fee ahead of time and get
his car out of the parking lot. W ithin the parking lot, ticket readers with human operators have been in- stalled at exits for those customers who must repay or have not paid their fees. Up until now, this type of system has never been available in Korea. Another remarkable feature is that these Amano machines issue for the first time Korean w ritten receipts from automated payment machines and operator cash registers.
M ist C ollect or s D oing
W ell
A total of 14 EM-15e and 3 EM-30e M ist Collector machines have been delivered to Bupyon plant and Ansan plant of YG -1 C orporation. YG -1 Corporation accepted these Amano mist collectors in an attempt to im- prove the working environments at their plants and to meet international standards.
Amano Electronics Europe, N .V.
Amano Korea Corporation
Amano Electronics Europe, N .V.
Virtual Terminal
Deg Airport
Amano Korea Corporation
Mist Collectors
Expanding Local Produc-
t ion C ent er s in Asean
Countries
Amano Cleantech M alaysia with its head offices in Malaysia serving as the environmental center for Southeast Asia is expanding production opera- tion throughout the ASEAN coun- tries, and prepare for the establish- ment of A SEA N free trade zones scheduled for the year 2003. In Thai- land which is gradually becoming a center for automotive production, with increased alliance with local ven- dors, production of dust collector systems is also increasing. W ith C AD drawings shared, par ts procurement globalized, high-quality products have become available in a timely manner at lower prices.
T ime Infor mat ion Sys-
tems D ivision
Embracing the challenges to estab- lish ourselves as a leader of H uman Reso urces M anagement Syst em (H RM S) providers in the high-end market, Amano Time & Air Singapore Pte. Ltd. has been taking initiatives in delivering our high-end H R system solutions and quality consultation ser-
vices for more than 5 years, while we steadily commit ourselves to innova- tive, value-added products and solu- tions for various PC -based system markets. Today, so many successful implementations of SA P R/3® H R subsystems to famous M N Es in the area has positioned us as a unique forerunner in this field among all other worldwide Amano subsidiaries.
The year 2001 started with the imple- mentation of such SA P R/ 3® H R module subsystem to Changi Inter- national A irpor t Ser vices ( C IA S) project, followed by large-sized, fa- mous local projects : MN D ( Ministry of N ational D evelopment ) / N parks ( N ational Parks ) project and O MN I electronics group project. N ewly-re- leased Amano H R-CO M3 ( new sub- system interface "H R-PD C" specifica- tion compliance subsystem, officially certified by SAP AG® system has been implemented to M N D /N parks and O MN I group projects. O MN I group, one of the top-rated Singapore en- terpr ises w ho has factor ies and branches all over the world, uses over 60 units of Amano readers through their W AN connections to 10 large remote locations in Singapore and Malaysia. MN D /N parks project, a so- lution covering 13 different remote sites over W AN connections, is the first case that utilizes Amano's em- bedded PC terminal called A M X - 2000. This network-oriented infor- mation device, AMX -2000, is an ideal solution for any types of client / server system integration purposes in the distributed environment over Internet or Intranet.
Leveraging such extensive experience in high-end system integrations and
consultation businesses, Amano Time
& Air Singapore Pte. Ltd. continues to strive to be a leading provider of total H uman Resources solutions in S.E. Asia and South Asia.
Car Park D ivision
ATAS car park divisions enjoy a pros- perous year in Year 2000. The sales volume increase to a record high of S$4.7M . Sales in Singapore contrib- ute to 60% of the value. This includes the awards of 9 up-grading projects from D BS land (D BS : D evelopment Bank of Singapore), among them in- cludes our largest installation, Plaza Singapura, consisting of 2 entrances, 7 exits, 1 cashier station and 7 Auto- matic Payment Station. W ith the in- crease in the number of projects, Amano have become the 2nd larg- est car park equipment supplier in Singapore.
As the market moves towards cash- less system using N ETS (N etwork for Electronics Transfer System) cards in the last quar ter of the year, ATA S managed to successfully launch our own cashless system in Singapore Shopping Centre.
T his syst e m w as d e signe d in Singapore using the concept of regis- tering the N ETS card at the entrance
Amano Cleantech M alaysia Sdn.Bhd.
Amano Time & Air Singapore Pte. Ltd.
Amano Time & Air Singapore Pte. Ltd.
Puls-Jet Dust Collector WRT-9600
St ar t M ar ket ing H and
Punch
In April 2000, Amano officially started sales of the hand punch made by RSI Corp, U SA. This hand punch is used for Time & Attendance and Access Control, identifying and authenticat- ing the user's hand. W ith this hand punch combined with Amipay (pay- roll) and TW L (Time & Attendance) software previously sold a whole new system has become available. Big ad- vantages for the customer include non-disputable and fair time punch and no need for preparing cards. The cost is somewhat higher than for sys- tems using ordinar y ID card readers but it is accepted well in Indonesia. Seven successful orders until M arch this year resulted in sales of U S$ 100,000. Some of the customers were attracted to using this system, and they would not buy the conven- tional system if it was offered. U n- doubtedly, this unique system contrib- and calculate the fee chargeable at the exit. The amount will be deducted automatically from the N ETS card at the exit. N ET S w ill transfer the amount to the client bank account the next day. This system helps in re- ducing human frauds and errors as well as the hassle of replenishment of coins.
Economy slowdown have fur ther in- crease the demand for lower cost system, ATA S is glad that we have been able to keep up with the mar- ket demands and believe that we will continue to be the market leader in the car parking industry.
G ood par king product
sales !
Amano Australia focuses mainly on sales of parking products.
W ith help from existing Amano's dis- tributors, we won a number of or- ders from large shopping malls dur- ing the current year. For just an ex- ample, Amano won an order from W arringah Mall Shopping Centre for a total of sixty-four parking units. O ur systems are particularly well accepted by large businesses such as local coun- cils and W estfield shopping centres, and we expect to continue receiving orders as we do now.
PT. Amano Indonesia
Amano Australia Pty.Ltd. PT. Amano Indonesia
Since its establishment in 1 9 9 9 , Amano Australia has been tying to find a breakthrough for Amano's Time Information Systems in A ustralia. W ith the joint effor ts with local part- ners, we are opening up new market for its new business.
In general, most of labor force in Aus- tralia is provided by displacement agencies. M ost businesses such as large supermarkets, transpor tation companies or manufacturers do not recruit workers on their own, but procure labor force temporarily from those services. In view of this, Amano Australia addresses its effor t to find new market in these occupational fields. W ith products supplied by ACI, one of Amano's subsidiaries in the US, coupled with payroll, employment and H R software from other compa- nies, Amano Australia will continue to find opportunity in this potential mar- ket. For more sales and for maintain- ing A mano brand in the mar ket, A mano A ustralia is determined to stay in the market and capture busi- ness potential.
Environmental Products
Equipment investments in Indonesia factories and plants have been in- creasing steadily since last year for en- vironmental products with increased projects for dust collector systems. Amano will focus on sales expansion of more environmental products with suppor t from Environmental Prod- ucts business division.
utes not a little to Amano’s Time In- formation System business.
AMANO Co rpo ratio n and Sub sidiarie s
Financ ial Highlights
Fo r the ye ars e nde d Marc h 3 1 , 2 0 0 1 and 2 0 0 0 .
Yen in millions and U.S. dollars in thousands, except per share amounts - See Note 4 to the Consolidated Financial Statements.
2001 2000 2001
For the years ended March 31:
Net sales ... ¥61,100 ¥54,017 $492,742 Net income ... 2,465 2,678 19,879 Per share data:
Net income per share ... ¥26.63 ¥28.44 $0.215 Cash dividends per common share ... 13.00 13.00 0.105 At March 31:
Total assets ... ¥99,658 ¥97,251 $803,694 Working capital ... 35,089 45,214 282,976 Shareholders’ equity ... 76,404 76,821 616,161 Sales by product:
Time information systems ... ¥10,360 ¥9,856 $83,548 Time management equipment ... 8,922 8,679 71,952 Parking systems ... 19,671 16,774 158,637 Environmental systems ... 12,580 10,267 101,452 Cleaning systems ... 9,567 8,441 77,153 Note: 1. U.S. dollar amounts have been translated at the rate of ¥124= US $1, the rate prevailing on March 31, 2001.
- See Note 4 to the Consolidated Financial Statements.
'960 '97 '98 '99 '00 '01 '97 '98 '99 '00 '01 '97 '98 '99 '00 '01
5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000 60,000 65,000
0 500
0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00
1,000 1,500 2,000 2,500 3,000
Net Sales
(Millions of Yen)
Net Income
(Millions of Yen)
Net Income Per Share
(Yen)
AMANO Co rpo ratio n and Sub sidiarie s
Co nso lidated Balanc e Sheets
As at Marc h 3 1 , 2 0 0 1 and 2 0 0 0 .
Thousands of U.S.
Millions of Yen dollars ( Note 4)
ASSETS 2001 2000 2001
Current assets:
Cash and bank deposits ... ¥22,989 ¥15,022 $185,395 Marketable securities ... 1,701 22,274 13,718 Notes and accounts receivable:
Trade ... 22,533 19,014 181,718 Less allowance for doubtful accounts ... (181) (196) (1,460)
22,352 18,818 180,258
Inventories ... 5,932 4,625 47,839 Deferred tax assets ... 684 523 5,516 Other current assets ... 702 757 5,661 Total current assets ... 54,360 62,019 438,387
Investments and advances:
Investment in and advance to affiliates’ ... 351 268 2,831
Investments in securities ... 16,242 6,516 130,984 Other investments ... 4,977 3,699 40,137 Total investments and advances ... 21,570 10,483 173,952
Property, plant and equipment, at cost:
Buildings ... 21,342 21,585 172,113 Machinery and equipment ... 15,950 15,357 128,629
37,292 36,942 300,742
Less accumulated depreciation ... (23,247) (22,077) (187,476)
14,045 14,865 113,266
Land ... 5,788 5,660 46,678 Construction in progress ... 141 191 1,137 Net property, plant and equipment ... 19,974 20,716 161,081
Fixed leasehold deposits... 1,186 1,479 9,565
Deferred charges and other assets... 2,568 2,554 20,709
Total ... ¥99,658 ¥97,251 $803,694 The accompanying notes are an integral part of these statements.
Thousands of U.S.
Millions of Yen dollars ( Note 4)
LIABILITIES AND SHAREHOLDERS’ EQUITY 2001 2000 2001
Current liabilities:...
Short-term bank loans ... ¥
1,289
¥1,254 $10,395
Trade notes and accounts payable ...10,554
8,67285,113
Accrued expenses ...3,235
3,08926,089
Accrued income taxes ...1,473
1,41011,879
Other current liabilities ...2,720
2,38021,935
Total current liabilities ...19,271
16,805155,411
Long-term liabilities:
Accrued retirement benefits to employees ...
2,829
2,69922,815
Accrued retirement benefits to directors and corporate auditors ..891
7877,185
Deferred tax liabilities ...28
12226
Other ...194
1021,564
Total long-term liabilities ...3,942
3,60031,790
Minority interests in consolidated subsidiaries...
41
25332
Shareholders’ Equity:
Common stock, ¥50 ($0.40) par value: Authorized- 196,600,000 shares Issued and outstanding:
March 31, 2001 - 92, 381, 829 shares ...
18,240
–147,097
March 31, 2000 - 93, 681, 829 shares ... – 18,240 – Additional paid-in capital ...19,293
19,293155,589
Retained earnings ...41,326
41,463333,274
78,859
78,996635,960
Treasury stock at cost, 727,444 shares in 2001
and 21,846 shares in 2000 ... (
861
) (19) (6,944
) Foreign currency translation adjustments ... (1,594
) (2,156) (12,855
) Total shareholders’ equity ...76,404
76,821616,161
Total
...¥99,658
¥97,251 $803,694
The accompanying notes are an integral part of these statements.AMANO Co rpo ratio n and Sub sidiarie s
Co nso lidated Statements o f Inco me
Fo r the ye ars e nde d Marc h 3 1 , 2 0 0 1 and 2 0 0 0 .
Thousands of U.S.
Millions of Yen dollars ( Note 4)
2001 2000 2001
Net sales... ¥61,100 ¥54,017 $492,742 Cost of sales... 33,480 28,584 270,000 Gross profit ... 27,620 25,433 222,742 Selling, general and administrative expenses ... 22,317 20,489 179,976 Operating income ... 5,303 4,944 42,766 Other income (expenses) :
Interest and dividend income ... 573 807 4,621 Equity in earnings of affiliates ... (201) (114) (1,621) Interest expense ... (146) (127) (1,177) Amortization of research and development cost ... (296) (1,228) (2,387) Loss on disposal of property and equipment ... (269) (56) (2,169) Loss on sales of securities ... (124) (6) (1,000) Loss on w rite-dow n of marketable securities ... (20) – (161) Loss on w rite-dow n of golf club membership ... (235) – (1,895) Other, net ... (178) 117 (1,437) Income before income taxes ... 4,407 4,337 35,540 Income taxes :
Current ... 2,183 1,535 17,604 Deferred ... (252) 122 (2,032) Income before minority interests ... 2,476 2,680 19,968 Minority interests in net income of consolidated subsidiaries .. (11) (2) (89)
Net income ... ¥2,465 ¥2,678 $19,879
Yen U.S. dollars ( Note 4)
Net income per share, basic... ¥26.63 ¥28.44 $0.215 Cash dividends per common share ... 13.00 13.00 0.105 The accompanying notes are an integral part of these statements.
AMANO Co rpo ratio n and Sub sidiarie s
Co nso lidated Statements o f Cash Flo ws
Fo r the ye ars e nde d Marc h 3 1 , 2 0 0 1 and 2 0 0 0 .
Thousands of U.S. Millions of Yen dollars ( Note 4)
2001 2000 2001
Cash Flows from Operating Activities:
Income before income taxe ... ¥4,407 ¥4,337 $35,540 Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization ... 2,355 3,232 18,992
Increase in provision for accrued retirement benefits ... 131 216 1,056
Decrease in allowance for doubtful accounts ... 295 (45) 2,379
Interest and dividend revenue ... (573) (807) (4,621) Interest expenses ... 146 127 1,177 Foreign currency translation loss ... 40 152 323 Equity in losses of affiliates ... 201 115 1,621
Gain on sale of investments in securities ... – (438) –
Loss on sale of investments in securities ... 64 – 516
Gain on sale of fixed assets ... – (5) – Loss on disposal of fixed assets ... 269 56 2,169
Loss on w rite-dow n of golf club membership ... 235 – 1,895
Increase in trade notes and accounts receivable ... (3,268) (231) (26,355) Decrease in inventories ... (1,117) 252 (9,008) Increase in accounts payable ... 1,754 506 14,145 Others ... 621 (539) 5,010 Subtotal ... 5,560 6,928 44,839 Receipts from interest and dividends ... 620 834 5,000 Interest paid ... (187) (137) (1,508) Income taxes paid ... (2,114) (193) (17,049) Income taxes refund ... – 1,297 – Net cash provided by operating activities ... 3,879 8,729 31,282 Cash Flows from Investing Activities:
Payment for purchase of marketable securities ... (8,005) (11,673) (64,556) Proceeds from sale of marketable securities ... 18,171 11,620 146,540 Payment for purchase of property and equipment ... (985) (1,943) (7,944)
Proceeds from sale of property and equipment... 18 126 145
Payment for acquisition of intangible assets ... (707) (534) (5,702) Payment for acquisition of investments in securities ... (3,066) (2,627) (24,726) Proceeds from sale of investments in securities ... 3,111 1,314 25,089 Loans to third parties ... (5) (290) (40) Collection of loans ... 306 43 2,468 Others ... (1,276) 107 (10,290)
Net cash used in investing activities ... 7,562 (3,857) 60,984 Cash Flows from Financing Activities:
Proceeds from short-term bank loans ... 281 60 2,266 Repayment for short-term bank loans ... (402) (160) (3,242) Proceeds from long-term debt ... 77 153 621 Repayment for long-term debt ... – (102) – Payment for acquisition of treasury stock ... (2,194) (1,336) (17,694) Dividends paid ... (1,213) (1,232) (9,782) Net cash used in financing activities ... (3,451) (2,623) (27,831) Effect of exchange rate changes on cash and cash equivalents ... (23) (236) (185) Net increase in cash and cash equivalents ... 7,967 2,013 64,250 Cash and cash equivalents at beginning of year ... 15,022 13,059 121,145
Increase in cash and cash equivalents of new ly consolidated subsidiaries ... – 37 –
Decrease in cash and cash equivalents of exception of consolidated subsidiaries ... – (87) –
Cash and cash equivalents at end of year ... ¥22,989 ¥15,022 $185,395
The accompanying notes are an integral part of these statements.
Millions of Yen Additional
Common Paid-In Retained
(Number of Shares of Common Stock - Thousands) Stock Capital Earnings
Balance at March 31, 1999 (95,182)... ¥18,240 ¥19,293 ¥39,627 Cumulative effect of adopting deferred
income tax accounting ... – – 1,722 Net income for the year ... – – 2,678 Cash dividends ... – – (1,230) Directors’ bonuses ... – – (3) Retirement of treasury stock (1,500) ... – – (1,331) Balance at March 31, 2000 (93,682)... ¥18,240 ¥19,293 ¥41,463
Net income for the year ... 2,465 Cash dividends ... – – (1,211)
Directors’ and corporate auditors’ bonuses ... – – (39)
Retirement of treasury stock (1,300) ... – – (1,352) Balance at March 31, 2001 (92,382) ... ¥18,240 ¥19,293 ¥41,326
Thousands of U.S. dollars (Note 4) Additional
Common Paid-In Retained
Stock Capital Earnings
Balance at March 31, 2000... $147,097 $155,589 $334,379 Net income for the year ... – – 19,879 Cash dividends ... – – (9,766)
Directors’ and corporate auditors’ bonuses ... – – (315)
Retirement of treasury stock (1,300) ... – – (10,903) Balance at March 31, 2001... $147,097 $155,589 $333,274
The accompanying notes are an integral part of these statements. AMANO Co rpo ratio n and Sub sidiarie s
Co nso lidated Statements o f Shareho lders’ Equity
Fo r the ye ars e nde d Marc h 3 1 , 2 0 0 1 and 2 0 0 0 .
