Summary Financial Statements (Consolidated)

for 2nd Quarter of Fiscal Year 2023 (Year Ending March 31, 2024) (Japan GAAP)

October 27, 2023

Company name:

Amano Corporation

Listed on:

TSE

Securities code:

6436

URL https://www.amano.co.jp/English/

Representative:

Manabu Yamazaki, President & Representative Director

Inquiries:

Kunihiro Ihara, Director & Managing Operating Officer

Phone: +81 (45) 439-1591

General Manager, Corporate Planning

Scheduled date for filing of quarterly securities report: November 7, 2023

Scheduled date for commencing of dividend payments: December 4, 2023

Supplementary explanation materials prepared for quarterly financial results: Yes

Briefing held on quarterly financial results: Yes (for institutional investors and analysts)

(Amounts less than 1 million yen are rounded down)

1. Business results for 2nd Quarter of fiscal year 2023 (April 1, 2023 to September 30, 2023)

(1) Operating results

(Percentages represent year-on-year changes.)

Net income attributable

Net sales

Operating profit

Ordinary profit

to owners of the parent

company

2Q of FY 2023 (year ending March 2024)

2Q of FY 2022 (year ended March 2023)

Note: Comprehensive income

2Q of FY 2023 (year ending March 2024)

2Q of FY 2022 (year ended March 2023)

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

70,163

16.1

8,012

43.0

8,609

37.9

5,557

50.1

60,455

9.3

5,604

24.3

6,244

25.6

3,703

15.1

2nd Quarter of FY 2023 (year ending March 2024): ¥10,351 million (24.7%)

2nd Quarter of FY 2022 (year ended March 2023): ¥8,303 million (70.6%)

Net income per share

Diluted net income per

share

Yen

Yen

76.84

―

50.52

―

  1. Financial position

2Q of FY 2023 (as of September 30, 2023)

FY 2022 (as of March 31, 2023)

Reference: Equity capital

Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen

%

Yen

176,912

121,946

68.7

1,694.54

171,250

121,638

70.5

1,656.43

2nd Quarter of FY 2023 (as of September 30, 2023): ¥121,511 million

FY 2022 (as of March 31, 2023): ¥120,756 million

2. Dividends

FY 2022 (year ended March 2023)

FY 2023 (year ending March 2024)

FY 2023 (year ending March 2024) (est.)

Annual dividends

First quarter-end

2nd Quarter-end

Third quarter-end

Year-end

Total

Yen

Yen

Yen

Yen

Yen

―

30.00

―

80.00

110.00

―

40.00

―

80.00

120.00

Note: Revisions to most recently released dividend forecast: None

3. Forecast earnings for fiscal year 2023 (April 1, 2023 to March 31, 2024)

(Percentages represent year-on-year changes.)

Net income attributable

Net sales Operating profit Ordinary profit to owners of the parent Net income per share

company

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Yen

Full year

140,000

5.4

17,700

12.1

18,500

9.1

12,500

10.7

174.32

Note: Revisions to most recently released earnings forecast: None

76,657,829shares As of March 31, 2023
4,950,304shares As of March 31, 2023
72,328,601 As of 2Q ended shares September 30, 2022
: Yes
: None

Notes

  1. Significant changes among subsidiaries during the fiscal year under review (i.e. changes among specific subsidiaries resulting in a change in the scope of consolidation)
  2. Application of accounting procedures specific to the preparation of the consolidated quarterly financial statements
  3. Changes to accounting policy, changes to accounting forecasts, and restatements

[1]

Changes arising from revision of accounting standards

:

None

[2]

Changes to accounting policy other than those in [1] above

:

None

[3]

Changes to accounting forecasts

:

None

[4]

Restatements

:

None

(4) Number of shares issued and outstanding (common stock)

[1]

Number of shares issued and outstanding at the end

As of 2Q ended

of the period (including treasury stock)

September 30, 2023

[2]

Number of shares of treasury stock at the end of the

As of 2Q ended

period

September 30, 2023

[3]

Average number of shares outstanding (over the

As of 2Q ended

fiscal year under review up to September 30, 2023)

September 30, 2023

76,657,829 shares

3,756,315 shares

73,307,073 shares

Note: The number of shares of treasury stock as of September 30, 2023, includes the Company's shares held by the Director's Compensation BIP Trust and the Employee Stock Ownership Plan (J-ESOP) (796,484 shares as of September 30, 2023 and 398,219 shares as of March 31, 2023 respectively).

In addition, these Company's shares are included in the treasury stock which is deducted in calculating the average number of shares during the period.

Note: These quarterly Summary Financial Statements are not subject to the quarterly review procedures.

Note: Explanation concerning appropriate use of the earnings forecast, and other matters to note Caution regarding forward-lookingstatements

Earnings forecasts and other forward-looking statements contained in this document are based on information available at the time of preparing this document and on certain assumptions that are deemed to be reasonable. A variety of factors could cause actual results to differ significantly from the forecasts. For information on the earnings forecasts, please refer to "1. Qualitative Information on Consolidated Financial Results for the Current Quarter (3) Explanation of Forward-looking Information, including the Outlook for Consolidated Operating Results" on page 7 of the attached document.

Obtaining supplementary financial results materials and information on the scheduled financial results briefingSupplementary financial results materials are disclosed via TDnet on the same day as the date of this document. Also, a financial results briefing for institutional investors and analysts is scheduled for Tuesday, October 31, 2023. On the same day, the financial results materials to be distributed at this briefing are due to be published on the Amano Corporation website.

  • Table of Contents for Attachment

1.

Qualitative Information on Consolidated Financial Results for the Current Quarter

2

(1)

Explanation of Business Results

2

(2)

Explanation of Financial Condition

6

  1. Explanation of Forward-looking Information, including Outlook for Consolidated Operating

Results

7

(4)

Basic Policy on Distribution of Profits and Payment of Dividends for This Second Quarter

7

2.

Consolidated Quarterly Financial Statements and Primary Explanatory Notes

8

(1)

Consolidated Quarterly Balance Sheets

8

  1. Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of

Comprehensive Income

10

(3) Consolidated Quarterly Statements of Cash Flows

12

(4) Notes on Quarterly Consolidated Financial Statements

14

Notes Regarding the Premise of a Going Concern

14

Notes on Significant Changes in Shareholders' Equity

14

Application of Accounting Procedures Specific to the Preparation of the Consolidated Quarterly Financial

Statements

14

Additional information

14

Segment Information

15

Significant Subsequent Events

15

1

1. Qualitative Information on Consolidated Financial Results for the Current Quarter

  1. Explanation of Business Results
    During the second quarter of the current consolidated cumulative period, the Japanese economy showed signs of recovery as economic activity normalized, but the economic outlook remains uncertain due to factors such as concerns about an economic slowdown overseas, the continued rise in various prices, and the impact of exchange rate fluctuations, etc.
    Under this business environment, in our 9th Medium-Term Business Plan that started in April 2023, we the Amano Group set forth the management concept of "The 4th Stage Towards a 100-yearCompany-Initiatives for a Paradigm Shift Leading to Sustainable Management" in which we will promote DX in each business field and execute strategic investments in software-based assets, IoT, AI, etc., and further enhance our competitive advantage in terms of profitability. Furthermore, we will proactively work to solve social issues.
    As a result, during the second quarter under review, net sales were ¥70,163 million (up 16.1% year-on-year), operating profit was ¥8,012 million (up 43.0% yoy), ordinary profit was ¥8,609 million (up 37.9% yoy), and net income attributable to owners of the parent company was ¥5,557 million (up 50.1% yoy).
    Main factors behind the business results
    1. At non-consolidated Amano, Parking Systems sales grew significantly indicating that the recovery trend is clearly positive. Clean Systems sales also increased significantly due to stronger sales of robotic floor scrubbers. Information Systems sales increased, reversing the decline in sales in the first quarter. Environmental Systems sales of standard dust collectors declined due to the impact of lower orders for machine tools, but large-scale systems sales grew, resulting positive overall sales.
    2. In domestic group companies, the consigned parking lot management service business performed well, exceeding pre-COVID results, and the cloud service business for T&A also continued to grow. The digital time stamp business continued to perform well, meeting the needs to respond to the requirements under the revised Electronic Books Preservation Act.
    3. In overseas markets, sales increased in North America, Europe, and Asia. In North America, Parking Systems sales increased due to the effect of new products, and earnings are also improving. In Europe, Information Systems sales performed well and grew significantly. In Asia, Parking Systems sales continued to grow in South Korea and Hong Kong.

The following are business results by segment:

Sales by business division

(Millions of yen)

2Q of FY 2022

2Q of FY 2023

Change

Category

(year ended March 2023)

(year ending March 2024)

Amount

Ratio (%)

Amount

Ratio (%)

Amount

%

Time Information System business:

Information Systems

14,596

24.1

16,187

23.1

1,590

10.9

Time Management Products

1,305

2.2

1,241

1.8

(64)

(4.9)

Parking Systems

28,805

47.7

35,106

50.0

6,301

21.9

Subtotal

44,707

74.0

52,535

74.9

7,827

17.5

Environment System business:

Environmental Systems

9,263

15.3

10,803

15.4

1,539

16.6

Clean Systems

6,484

10.7

6,824

9.7

340

5.3

Subtotal

15,747

26.0

17,628

25.1

1,880

11.9

Total

60,455

100.0

70,163

100.0

9,707

16.1

2

Time Information System business

 Information Systems:

Time & Attendance (T&A), Human Resources (HR) systems,

payroll information systems, access control, and digital time stamps

 Time Management Products:

PC-linked time recorders, online time recorders, and time stamps

 Parking Systems:

Parking lot management systems, bicycle parking lot management

systems, and consigned parking lot management service

The sales in this business totaled ¥52,535 million, up by ¥7,827 million (17.5%) year-on-year. The following is a breakdown of sales by business division.

• Information Systems ¥16,187 million (up 10.9% year-on-year)

Domestic sales for the current term were as follows. For non-consolidated Amano, software sales increased by ¥118 million (2.7%) due to a continuing recovery trend in orders for small to medium-sized businesses, hardware sales increased by ¥188 million (16.7%), and sales generated by maintenance contracts and supplies services decreased by ¥59 million (2.7%) year-on-year. The cloud services developed by Amano Business Solutions Corporation continued to perform strongly.

Overall overseas sales increased by ¥1,288 million (20.7%), because sales for both Accu-Time Systems, Inc. in North America and Horoquartz S.A. in Europe increased.

• Time Management Products ¥1,241 million (down 4.9% year-on-year)

Overall domestic sales for the current term increased by ¥21 million (2.2%) year-on-year as the sales of standard time recorders including exports increased, although sales of PC-linked time recorders decreased.

Overall overseas sales decreased by ¥78 million (21.1%) as sales in North America and Asia decreased.

• Parking Systems ¥35,106 million (up 21.9% year-on-year)

Domestic sales for the current term were as follows. For non-consolidated Amano, domestic parking lot management systems sales increased by ¥1,947 million (38.2%) due to a recovery trend, while sales generated by maintenance contracts and supplies services increased by 346 million (7.4%). Sales continued to increase in the consigned parking lot management service business operated by Amano Management Service. As a result of the continued investment by them, the number of parking spaces under management increased by 20,500 (3.0%) from the end of the previous fiscal year.

Overall overseas sales increased by ¥3,995 million (30.4%) due to the increase in the sales of Amano McGann, Inc. in North America and the increase in sales of the consigned parking lot management service business in Korea and Hong Kong in Asia.

Environment System business

 Environmental Systems:

Standard dust collectors, mist collectors, large dust collectors, pneumatic

conveyors, deodorizing equipment, and industrial air purifiers

 Clean Systems:

Industrial vacuum cleaners, automatic floor scrubbers, robotic floor

scrubbers, wooden floor polishers, consigned janitorial management services,

and electrolyzed water generators

The sales in this business totaled ¥17,628 million, up by ¥1,880 million (11.9%) year-on-year. The following is a breakdown of sales by business division.

• Environmental Systems ¥10,803 million (up 16.6% year-on-year)

During the current term for non-consolidated Amano, domestic sales of standard dust collectors decreased by ¥35 million (1.0%). On the other hand, sales of large-scale systems increased by ¥997 million (46.6%), while sales generated by maintenance contracts and supplies services increased by ¥119 million (5.7%) year-on-year.

3

Overall overseas sales increased by ¥422 million (29.4%) as sales in Asia increased due to a recovery in mainly Thailand.

• Clean Systems ¥6,824 million (up 5.3% year-on-year)

During the current term for non-consolidated Amano, overall domestic sales of cleaning equipment increased by ¥248 million (26.0%) due to increase in sales of robotic floor scrubbers, and domestic sales generated by maintenance contracts and supplies services increased by ¥2 million (0.2%) year-on-year.

Overall overseas sales increased by ¥85 million (2.1%) as Amano Pioneer Eclipse Corporation in North America achieved the increase in sales.

4

Reference information

Information by area

(Millions of yen)

Net sales

Operating profit/loss

2Q of

2Q of

Percentage

2Q of

2Q of

Percentage

FY 2022

FY 2023

FY 2022

FY 2023

Change

change

Change

change

(year ended

(year ending

(year ended

(year ending

(%)

(%)

March 2023) March 2024)

March 2023) March 2024)

Japan

35,628

39,694

4,065

11.4

6,663

7,887

1,224

18.4

Other Asia

11,289

14,606

3,316

29.4

584

1,047

462

79.2

North

9,142

10,160

1,018

11.1

(541)

(56)

484

―

America

Europe

5,095

6,399

1,304

25.6

659

947

288

43.7

Total

61,155

70,860

9,704

15.9

7,366

9,826

2,459

33.4

Eliminations/

(700)

(697)

―

―

(1,761)

(1,814)

―

―

Corporate

Consolidated

60,455

70,163

9,707

16.1

5,604

8,012

2,407

43.0

Notes: 1. The national and regional demarcations are based on the degree of geographical proximity.

2. Major countries and territories included in areas other than Japan:

  1. Other Asia: Singapore, Thailand, Malaysia, Indonesia, South Korea, China, Philippines, and Vietnam
  2. North America: United States, Canada and Mexico
  3. Europe: France, Belgium and Spain

Overseas sales

Overseas sales

2Q of

2Q of

Percentage

FY 2022

FY 2023

Change

change

(year ended

(year ending

(%)

March 2023)

March 2024)

Other Asia

11,402

14,645

3,243

28.4

North America

8,520

9,598

1,078

12.7

Europe

4,980

6,194

1,213

24.4

Other regions

517

593

76

14.8

Total

25,420

31,032

5,611

22.1

Consolidated net

60,455

70,163

sales

(Millions of yen)

Proportion of consolidated net sales accounted

for by overseas sales (%)

2Q of

2Q of

FY 2022

FY 2023

Change

(year ended

(year ending

March 2023)

March 2024)

18.9

20.9

2.0

14.1

13.7

(0.4)

8.2

8.8

0.6

0.8

0.8

0.0

42.0

44.2

2.2

Notes: 1. The national and regional demarcations are based on the degree of geographical proximity.

  1. Major countries and territories included in areas other than Japan:
    1. Other Asia: Singapore, Thailand, Malaysia, Indonesia, South Korea, China, Philippines, and Vietnam
    2. North America: United States and Canada
    3. Europe: France, Belgium and Spain
    4. Other regions: Central and South America
  3. Overseas sales comprise sales by Amano Corporation and our consolidated subsidiaries to countries and regions other than Japan.

5

  1. Explanation of Financial Condition
    1. Assets, liabilities, and net assets

Total assets amounted to ¥176,912 million (up ¥5,661 million from the previous consolidated fiscal year-end).

  • Current assets: an increase of ¥367 million due to increases in merchandise and finished goods, and raw materials and supplies, etc.
  • Fixed assets: an increase of ¥5,294 million due to increases in lease assets (net), and investment securities, etc.

Total liabilities amounted to ¥54,966 million (up ¥5,354 million from the previous consolidated fiscal year-end).

  • Current liabilities: an increase of ¥3,477 million due to an increase in lease liabilities, etc.
  • Long-termliabilities: an increase of ¥1,876 million due to an increase in lease liabilities, etc.

Net assets amounted to ¥121,946 million (up ¥307 million from the previous consolidated fiscal year-end).

  • Shareholders' equity: a decrease of ¥3,960 million due to dividends paid and acquisition of treasury stock, etc.
  • Accumulated other comprehensive income: an increase of ¥4,715 million due to an increase in foreign currency translation adjustments, etc.

(ii) Cash flows

Consolidated cash and cash equivalents decreased by ¥6,123 million from the previous fiscal year-end, to a total of ¥48,961 million at the end of the first half. More specifically, the status of each type of cash flow during the first half and the underlying factors are as follows:

Net cash provided by operating activities totaled ¥10,366 million (an increase in income of ¥1,280 million year- on-year).

• Main income factors:

Posting of income before income taxes amounting to ¥8,524 million and posting of depreciation and amortization amounting to ¥4,855 million.

Posting of a decrease in trade notes and accounts receivable and contract assets amounting to ¥1,402 million.

• Main expenditure factors:

Posting of income taxes paid amounting to ¥3,462 million and posting of an increase in inventories amounting to ¥1,822 million.

Net cash used in investing activities totaled −¥5,242 million (an increase in cash outflow of ¥3,424 million year- on-year).

• Main income factors:

Posting of proceeds from withdrawal of time deposits amounting to ¥7,191 million.

• Main expenditure factors:

Posting of increase in time deposits amounting to ¥8,380 million and payment for purchase of tangible fixed assets amounting to ¥1,605 million

Payment for acquisition of intangible fixed assets amounting to ¥1,155 million and payment for acquisition of subsidiary shares involving change to the scope of consolidation amounting to ¥1,136 million.

Net cash used in financing activities amounted to −¥12,575 million (an increase in cash outflow of ¥3,193 million year-on-year).

• Main income factors:

Posting of proceeds from sale and leaseback amounting to ¥1,005 million.

• Main expenditure factors:

Posting of dividends paid amounting to ¥5,863 million and posting of payment for acquisition of treasury stock amounting to ¥3,716 million.

Posting of repayments of lease obligations amounting to ¥3,475 million.

6

  1. Explanation of Forward-looking Information, including the Outlook for Consolidated Operating Results Although the second quarter of consolidated fiscal year ended with significant increase both in sales and operating profit compared to the same period of the previous year, considering the changes in the business environment in countries with recessionary concerns and heightened geopolitical risks, we will not change the full-year earnings forecast for the fiscal year ending March 31, 2024, which were announced on April 26, 2023. However, based on the future business environment, we plan to review the numerical plan in a timely manner.
  2. Basic Policy on Distribution of Profits and Payment of Dividends for This Second Quarter
    Amano Corporation places great importance on our policy of paying dividends to shareholders. Our fundamental policy to return profits to shareholders is to continue to make stable ordinary dividend payments, make appropriate performance-based distributions, and buy back shares, as it deems necessary. We aim to maintain a dividend payout ratio of at least 40% on a consolidated basis, a total return ratio of at least 55%, and a net asset dividend rate of at least 2.5%.
    In line with this policy, taking into account the current business performance, we plan to pay an interim dividend of ¥40 per share, which an increase of ¥5 per share from the previous forecast announced on April 26, 2023.

7

2. Consolidated Quarterly Financial Statements and Primary Explanatory Notes

(1) Consolidated Quarterly Balance Sheets

(Millions of yen)

(as of March 31, 2023)

(as of September 30, 2023)

Assets

Current assets

Cash and bank deposits

62,399

58,940

Notes and accounts receivable-trade and contract assets

30,958

30,591

Marketable securities

3,357

3,062

Merchandise and finished goods

4,663

6,120

Work in process

791

1,173

Raw materials and supplies

7,956

8,855

Other current assets

4,112

5,872

Allowance for doubtful accounts

(491)

(500)

Total current assets

113,749

114,116

Fixed assets

Tangible fixed assets

Buildings and structures (net)

8,597

8,462

Machinery and vehicles (net)

892

855

Tools, furniture and fixtures (net)

2,281

2,546

Land

5,846

5,745

Lease assets (net)

11,153

13,781

Construction in progress

364

424

Total tangible fixed assets

29,135

31,816

Intangible fixed assets

Goodwill

1,214

2,111

Software

3,194

3,327

Software in progress

702

866

Other

1,729

1,749

Total intangible fixed assets

6,840

8,054

Investments and other assets

Investment securities

14,974

16,533

Claims in bankruptcy and similar claims

458

466

Fixed leasehold deposits

1,661

1,775

Net defined benefit assets

115

115

Deferred tax assets

2,591

2,060

Other

2,194

2,450

Allowance for doubtful accounts

(470)

(477)

Total investments and other assets

21,525

22,925

Total fixed assets

57,501

62,796

Total assets

171,250

176,912

8

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Amano Corporation published this content on 27 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 November 2023 11:11:03 UTC.