Amano CorporationTSE: 6436

Summary Financial Statements (Consolidated) for 3rd Quarter of Fiscal Year 2024 (Year Ending March 31, 2025)

Jan 31, 2025 at 6:13 AM UTC · Issued by Amano Corporation

Summary Financial Statements (Consolidated)

for 3rd Quarter of Fiscal Year 2024 (Year Ending March 31, 2025) (Japan GAAP)

Company name:

Amano Corporation

Listed on:

TSE

January 31, 2025

Securities code:

6436

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

Representative:

Manabu Yamazaki, President & Representative Director

Inquiries:

Kunihiro Ihara, Director & Executive Operating Officer

Phone: +81 (45) 439-1591

General Manager, Corporate Planning

Scheduled date for start of dividend payments: ―

Supplementary explanation materials prepared for quarterly financial results: None

Briefing held on quarterly financial results: None

(Amounts less than 1 million yen are rounded down)

1. Business results for 3rd Quarter of fiscal year 2024 (April 1, 2024 to December 31, 2024)

(1) Operating results

(Percentages represent year on year changes.)

Net income attributable

Net sales

Operating profit

Ordinary profit

to owners of the parent

company

3Q of FY 2024 (year

Millions of yen

125,916

16.8

15,209

20.9

16,332

21.2

12,187

34.0

ending March 2025)

3Q of FY 2023 (year

107,791

16.8

12,581

40.2

13,470

36.7

9,094

44.9

ended March 2024)

Note: Comprehensive income

3rd Quarter of

FY 2024

(year ending

March 2025): ¥12,861 million (-12.3%)

3rd Quarter of FY 2023 (year ended March 2024): ¥14,670 million (25.1%)

Net income per share

Diluted net income per

3Q of FY 2024 (year ending

Yen

170.80

―

March 2025)

3Q of FY 2023 (year ended

126.10

―

March 2024)

(2) Financial position

Total assets

Net assets

Equity ratio

Net assets per share

3Q of FY 2024 (as of

Millions of yen

Yen

183,799

128,612

69.7

1,796.46

December 31, 2024)

FY 2023 (as of March 31,

184,585

128,103

69.1

1,779.42

2024)

Reference: Equity capital

3rd Quarter of FY

2024 (as of December 31,

2024): ¥128,060 million

2. Dividends

FY 2023 (as of March 31, 2024): ¥127,600 million

Annual dividends

1st Quarter-end

2nd Quarter-end

3rd Quarter-end

Year-end

Total

FY 2023 (year ended March

Yen

―

40.00

―

95.00

135.00

2024)

FY 2024 (year ending

―

50.00

―

March 2025)

FY 2024 (year ending

95.00

145.00

March 2025) (est.)

Note: Revisions to most recently released dividend forecast: None

3. Forecast earnings for fiscal year 2024 (April 1, 2024 to March 31, 2025)

(Percentages represent year on year changes.)

	Net sales	Operating profit	Ordinary profit		Net income attributable	Net income per share
		to owners of the parent
								company
	Millions of yen	%	Millions of yen	%	Millions of yen		%	Millions of yen	%	Yen
Full year	160,000	4.7	21,000	7.3	22,000		5.5	14,500	10.3	203.41

Note: Revisions to most recently released earnings forecast: None

Notes

Significant changes in the scope of consolidation during the current quarter
Application of accounting procedures specific to the preparation of the consolidated quarterly financial statements

None
Yes

Note: For details, please refer to "2. Consolidated Quarterly Financial Statements and Primary Explanatory Notes

1. Notes on Quarterly Consolidated Financial Statements (Notes on Accounting Procedures Specific to the Preparation of the Consolidated Quarterly Financial Statements) on page 13 of the attached document.
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)

Number of shares issued and outstanding at the end of the period (including treasury stock)
Number of shares of treasury stock at the end of the period
Average number of shares outstanding (over the fiscal year under review up to December 31, 2024)

As of 3Q ended	76,657,829	As of March 31, 2024	76,657,829
December 31, 2024	shares		shares
As of 3Q ended	5,372,860	As of March 31, 2024	4,948,546
December 31, 2024	shares		shares

As of 3Q ended	71,357,617	As of 3Q ended	72,122,268
December 31, 2024	shares	December 31, 2023	shares

Note: The number of shares of treasury stock as of December 31, 2024, includes the Company's shares held by the Director's Compensation BIP Trust and the Employee Stock Ownership Plan (J-ESOP).

(721,481 shares as of December 31, 2024 and 793,884 shares as of March 31, 2024 respectively)

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

Note: Review of the Japanese originals of the attached consolidated	: None
quarterly financial statements by certified public accountants
or an audit firm

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. Summary of Business Results (3) Explanation of Forward-looking Information, including the Outlook for Consolidated Operating Results" on page 6 of the attached document.

Table of Contents for Attachment

1. Summary of Business Results	2
(1)	Summary of Business Results for the Current Quarter	2
(2)	Summary of Financial Condition for the Current Quarter	5

Explanation of Forward-looking Information, Including Outlook for Consolidated Operating

		Results	6
2.	Consolidated Quarterly Financial Statements and Primary Explanatory Notes	7
	(1)	Consolidated Quarterly Balance Sheets	7
	(2)	Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of
		Comprehensive Income	9
	(3)	Consolidated Quarterly Statements of Cash Flows	11
	(4)	Notes on Quarterly Consolidated Financial Statements	13
		Notes on Premises of a Going Concern	13
		Notes on Significant Changes in Shareholders' Equity	13
		Notes on Accounting Procedures Specific to the Preparation of the Consolidated Quarterly Financial
		Statements	13
		Additional information	13
		Notes on Segment Information	14
		Significant Subsequent Events	14

1. Summary of Business Results

Summary of Business Results for the Current Quarter
During the third quarter of the current consolidated cumulative period, the Japanese economy is considered to be on a moderate recovery trend, supported by a strong corporate appetite for capital investment, although the outlook of the Japanese economy is ridden by uncertainties such as overseas economic slowdown, rising geopolitical risks, extensive price hikes, and exchange rate volatility.
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-year Company-Initiatives for a Paradigm Shift Leading to Sustainable Management" in which we have promoted DX in each business field and executed strategic investments in software-based assets, IoT, AI, etc., and further enhance our competitive advantage in terms of profitability. Furthermore, we have proactively worked to solve social issues.
As a result, during the third quarter under review, net sales were ¥125,916 million (up 16.8% year on year), operating profit was ¥15,209 million (up 20.9% yoy), ordinary profit was ¥16,332 million (up 21.2% yoy), and net income attributable to owners of the parent company was ¥12,187 million (up 34.0% yoy).
Main factors behind the business results
1. At the non-consolidated Amano, Parking Systems sales increased due to factors such as compatibility with new banknotes, etc. In addition, Information Systems sales continued to grow in software due to vigorous investment by various companies. Clean Systems sales continued to grow due to the strong performance of cleaning robots as well.
2. In domestic group companies, the consigned parking lot management service business continued to grow, and the cloud service business for T&A sales decreased slightly due to the transfer of operations to Amano and other factors. The digital time stamp business continued to perform well.
3. In overseas markets, sales increased in North America, Europe, and Asia, partly due to the effect of yen depreciation. In North America, Parking Systems sales continued to grow due to the effect of new products. In Europe, sales of Information Systems in France continued to grow by capturing customer needs. However, in North America and Europe, increased employees and rising labor costs put downward pressure on profits. In Asia, Parking Systems sales grew in South Korea and Hong Kong, and Environmental Systems sales grew in Thailand.
4. Gains on the sale of investment securities was booked as a result of the reduction of cross-shareholdings.

The following are business results by segment:

Sales by business division					(Millions of yen)
	3Q of FY 2023	3Q of FY 2024	Change
Category	(year ended March 2024)	(year ending March 2025)

	Amount	Ratio (%)	Amount	Ratio (%)	Amount	%
Time Information System business:
Information Systems	24,830	23.0	27,610	21.9	2,780	11.2
Time Management Products	1,863	1.8	1,767	1.4	(95)	(5.1)
Parking Systems	54,779	50.8	67,928	54.0	13,149	24.0

Subtotal	81,472	75.6	97,306	77.3	15,834	19.4

Environment System business:
Environmental Systems	16,512	15.3	17,726	14.1	1,214	7.4
Clean Systems	9,806	9.1	10,882	8.6	1,075	11.0

Subtotal	26,319	24.4	28,609	22.7	2,290	8.7

Total	107,791	100.0	125,916	100.0	18,124	16.8

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 ¥97,306 million, up by ¥15,834 million (up 19.4%) year on year. The following is a breakdown of sales by business division.

• Information Systems ¥27,610 million (up 11.2% year on year)

In Japan, Amano's non-consolidated sales increased due to increases in both software as well as maintenance and supply, although sales of hardware decreased. The sales of the cloud service business deployed by Amano Business Solutions Corporation decreased. Overseas, sales in North America decreased, while Europe increased, and overall sales increased.

• Time Management Products ¥1,767 million (down 5.1% year on year)

In Japan, both standard time recorders and PC-linked time recorders sales decreased, resulting in an overall sales decreased, and overseas sales also decreased.

• Parking Systems ¥67,928 million (up 24.0% year on year)

In Japan, Amano's non-consolidated sales were up due to increases in both system equipment as well as maintenance and supply, while sales increased at Amano Management Service Corporation, which is engaged in the consigned parking lot management service business. Overseas, sales in both North America and Asia increased, and overall sales also increased.

Environment System business
 Environmental Systems:	Standard dust collection systems, mist collectors, large dust collection
	systems, pneumatic conveyors, deodorizing equipment, and industrial air
	purifiers
 Clean Systems:	Industrial vacuum cleaners, automatic floor scrubbers, cleaning robots,
	wooden floor polishers, consigned janitorial management services, and
	electrolyzed water generators

The sales in this business totaled ¥28,609 million, up by ¥2,290 million (up 8.7%) year on year. The following is a breakdown of sales by business division.

Environmental Systems ¥17,726 million (up 7.4% year on year)

In Japan, Amano's non-consolidated sales were flat due to a decrease in standard equipment and an increase in large-scale systems. Overseas, sales in North America and Asia were up, and overall sales also increased.

Clean Systems ¥10,882 million (up 11.0% year on year)

In Japan, Amano's non-consolidated sales increased due to increases in both cleaning robots as well as maintenance and supply. Overseas, sales in North America increased, and overall sales also increased.

Reference Information
[Information by area]						(Millions of yen)

		Net sales			Operating profit/loss
	3Q of	3Q of		Percentage	3Q of	3Q of		Percentage
	FY 2023	FY 2024		FY 2023	FY 2024
	Change	change	Change	change
	(year ended	(year ending	(year ended	(year ending
		(%)		(%)
	March 2024)	March 2025)		March 2024)	March 2025)

Japan	61,006	65,440	4,433	7.3	12,310	14,430	2,120	17.2
Other Asia	22,761	30,086	7,325	32.2	1,585	1,949	363	22.9
North	15,351	19,265	3,913	25.5	(68)	248	316	―
America

Europe	9,700	11,955	2,254	23.2	1,479	1,542	63	4.3

Total	108,819	126,747	17,928	16.5	15,306	18,170	2,863	18.7

Eliminations/	(1,028)	(831)	―	―	(2,725)	(2,961)	―	―
Corporate

Consolidated	107,791	125,916	18,124	16.8	12,581	15,209	2,627	20.9

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:

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

[Overseas sales]					(Millions of yen)

		Overseas sales		Proportion of consolidated net sales accounted
			for by overseas sales (%)

	3Q of	3Q of		Percentage	3Q of	3Q of
	FY 2023	FY 2024		FY 2023	FY 2024
	Change	change	Change
	(year ended	(year ending	(year ended	(year ending
		(%)
	March 2024)	March 2025)		March 2024)	March 2025)

Other Asia	22,930	30,107	7,176	31.3	21.3	23.9	2.6
North America	14,482	17,999	3,516	24.3	13.4	14.3	0.9
Europe	9,382	11,373	1,990	21.2	8.7	9.0	0.3
Other regions	920	1,558	637	69.3	0.9	1.3	0.4

Total	47,715	61,038	13,322	27.9	44.3	48.5	4.2

Consolidated net	107,791	125,916
sales

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

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
Overseas sales comprise sales by the Company and its consolidated subsidiaries to countries and regions other than Japan.

(2) Summary of Financial Condition for the Current Quarter

(i) Assets, liabilities, and net assets

Total assets amounted to ¥183,799 million (down ¥785 million from the previous consolidated fiscal year-end).

Current assets: a decrease of ¥1,310 million due to decreases in notes and accounts receivable-trade, and

contract assets, and marketable securities, etc.

Fixed assets: an increase of ¥524 million due to an increase in software in progress, etc.

Total liabilities amounted to ¥55,187 million (down ¥1,294 million from the previous consolidated fiscal year- end).

Current liabilities: a decrease of ¥1,430 million due to decreases in electronically recorded obligations and

accrued income taxes, etc.

Long-termliabilities: an increase of ¥136 million due to an increase in lease liabilities, etc.

Net assets amounted to ¥128,612 million (up ¥509 million from the previous consolidated fiscal year-end).

Shareholders' equity: a decrease of ¥54 million due to dividends paid and acquisition of treasury stock, etc.
Accumulated other comprehensive income: an increase of ¥514 million due to an increase in foreign currency translation adjustments, etc.

(ii) Cash flows

Consolidated cash and cash equivalents decreased by ¥133 million from the previous fiscal year-end, to a total of ¥51,515 million at the end of the third quarter. More specifically, the status of each type of cash flow during the third quarter and the underlying factors are as follows:

Net cash provided by operating activities totaled ¥17,112 million (an increase in cash inflow of ¥1,057 million year on year).

Main income factors:
Posting of income before income taxes amounting to ¥17,530 million, posting of depreciation and amortization amounting to ¥8,153 million, posting of a decrease in trade notes and accounts receivable and contract assets amounting to ¥2,983 million, and posting of receipts from interest and dividends amounting to ¥1,108 million.
Main expenditure factors:
Posting of income taxes paid amounting to ¥6,273 million, posting of a decrease in trade payables amounting to ¥3,141 million, and posting of an increase in inventories amounting to ¥1,176 million.

Net cash used in investing activities totaled −¥1,878 million (a decrease in cash outflow of ¥5,022 million year on year).

Main income factors:
Posting of proceeds from withdrawal of time deposits amounting to ¥8,148 million, posting of proceeds from redemption of securities amounting to ¥3,050 million, and posting of proceeds from sale of investment securities amounting to ¥1,816 million.
Main expenditure factors:
Posting of increase in time deposits amounting to ¥7,676 million, posting of payment for purchase of tangible fixed assets amounting to ¥3,318 million, posting of payment for acquisition of intangible fixed assets amounting to ¥2,014 million, and payment for acquisition of investment securities amounting to ¥1,206 million.

Net cash used in financing activities amounted to −¥15,627 million (a decrease in cash outflow of ¥1,157 million year on year).

Main income factors:
Posting of proceeds from sale and leaseback amounting to ¥1,907 million.
Main expenditure factors:
Posting of dividends paid amounting to ¥10,488 million, posting of repayments of lease liabilities amounting to ¥5,795 million, and posting of payment for acquisition of treasury stock amounting to ¥1,953 million.

Explanation of Forward-looking Information, including Outlook for Consolidated Operating Results
The third quarter of consolidated fiscal year ended with a growth in both sales and profits year on year as business performance remained strong. Although the full-year earnings forecast is expected to exceed the initial plan, the figures are still under examination in consideration of the large fluctuations in March earnings, which is the month of highest demand in Japan. Therefore, at this time, the full-year earnings forecast for the fiscal year ending March 31, 2025, which was announced on April 25, 2024, remains unchanged. We will disclose the forecast figures in a timely manner as soon as we have a better outlook on them.

2. Consolidated Quarterly Financial Statements and Primary Explanatory Notes

(1) Consolidated Quarterly Balance Sheets

		(Millions of yen)

	FY 2023	FY 2024
	(as of March 31, 2024)	(as of December 31, 2024)
Assets
Current assets

Cash and bank deposits	62,577	62,183
Notes and accounts receivable-trade and contract assets	36,038	33,214

Marketable securities	2,725	1,335
Merchandise and finished goods	5,672	6,159

Work in process	916	1,252
Raw materials and supplies	8,601	9,042
Other current assets	4,753	6,783
Allowance for doubtful accounts	(393)	(390)
Total current assets	120,892	119,581
Fixed assets

Tangible fixed assets
Buildings and structures (net)	8,369	8,235

Machinery and vehicles (net)	961	1,027
Tools, furniture and fixtures (net)	2,689	3,287

Land	5,743	5,743
Lease assets (net)	12,603	12,833
Construction in progress	728	504
Total tangible fixed assets	31,096	31,632
Intangible fixed assets
Goodwill	1,884	1,550

Software	3,241	3,245
Software in progress	1,421	2,183

Other	2,196	2,013
Total intangible fixed assets	8,742	8,993
Investments and other assets
Investment securities	16,764	16,521
Claims in bankruptcy and similar claims	471	480
Fixed leasehold deposits	1,872	1,900
Net defined benefit assets	142	135
Deferred tax assets	2,071	2,140

Other	3,007	2,898
Allowance for doubtful accounts	(476)	(484)
Total investments and other assets	23,853	23,592
Total fixed assets	63,693	64,217
Total assets	184,585	183,799

		(Millions of yen)

	FY 2023	FY 2024
	(as of March 31, 2024)	(as of December 31, 2024)
Liabilities

Current liabilities
Notes and accounts payable-trade	6,979	6,597

Electronically recorded obligations	6,533	3,800
Short-term bank loans	94	885
Lease liabilities	5,407	5,731
Accrued income taxes	4,100	3,072
Accrued bonuses	2,973	1,396
Accrued officers' bonuses	200	-

Other current liabilities	19,001	22,375
Total current liabilities	45,289	43,859
Long-term liabilities
Lease liabilities	8,356	8,522

Deferred tax liabilities	23	4
Net defined benefit liabilities	1,721	1,533
Provision for stock benefit	407	534
Provision for directors' stock benefit	315	281
Asset retirement obligations	35	35
Other long-term liabilities	332	415
Total long-term liabilities	11,192	11,328
Total liabilities	56,482	55,187
Net assets
Shareholders' equity

Common stock	18,239	18,239
Capital surplus	19,293	19,293
Retained earnings	94,510	96,210
Treasury stock	(12,668)	(14,422)
Total shareholders' equity	119,374	119,320
Accumulated other comprehensive income

Net unrealized gains (losses) on available- for-sale securities	4,740	4,656
Foreign currency translation adjustments	3,253	3,819

Remeasurements of defined benefit plans	231	264
Total accumulated other comprehensive income	8,226	8,740
Non-controlling shareholders' interests	502	551
Total net assets	128,103	128,612
Total liabilities and net assets	184,585	183,799

Company analysis