Note: This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any
discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results for the Second Quarter (Interim) of the Fiscal Year Ending
December 31, 2024 [Japanese GAAP]
August 8, 2024
Altech Corporation Stock exchange listing: Tokyo
4641
URL https://www.alpsgiken.co.jp/
Atsushi Imamura
President
Hisaki Kikuchi
Corporate Officer and General Manager of Corporate PlanningPhone: +81-42 (774) 3333
Scheduled date of filing semiannual securities report:
August 9, 2024
Scheduled date of commencing dividend payments:
September 13, 2024
Availability of supplementary briefing material on financial results: Yes
Schedule of financial results briefing session: Yes (for analysts and institutional investors)(Amounts of less than one million yen are rounded down.)
Company name:
Code number:
Representative:
Contact:

1.

Consolidated Financial Results for the Second Quarter (Interim) of the Fiscal Year Ending December 31,
2024 (January 1, 2024 to June 30, 2024)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable toOperating profit
Ordinary profit
owners of parent

Net sales
Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen

Six months ended June 30,
24,098
5.6
2,457
3.2
2,515
1.8
1,603
2024
Six months ended June 30,
22,820
9.7
2,380
8.5
2,470
19.3
1,814
2023
(Note) Comprehensive income: Interim period of the fiscal year ending December 31, 2024
1,880 million [(2.7) %]Six months ended June 30, 2023
1,932 million yen [17.8%]
Basic earnings
Diluted earnings
per shareper share
Six months ended June 30,2024
Six months ended June 30,
2023

Yen

Yen

80.70

－

90.50

－

(2) Consolidated Financial Position
Total assets

Net assets

Millions of yen

Capital adequacy ratio

Millions of yen%

As of June 30, 2024
26,83417,75366.0
As of December 31, 2023
25,025
16,866
67.2(Reference) Equity: As of June 30, 2024 17,703 million yen As of December 31, 2023 16,822 million yen

2.

Dividends
Annual dividends
1st quarter-end
Yen

2nd quarterend
Yen

3rd quarterend
Yen

Year-end
Yen

Fiscal year ended
－
－
52.00
51.00
December 31, 2023
Fiscal year ending－
44.00
December 31, 2024
Fiscal year ending－
December 31, 2024
44.00
(Forecast)(Note 1) Revision to the forecast for dividends announced most recently: No(Note 2) Breakdown of the 2nd quarter dividend for the fiscal year ended December 31, 2023:
Ordinary dividend 42 yen
55th Anniversary dividend 10 yen

Total
Yen

103.0088.00%(11.6)
15.3

3.

Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2024 (January 1, 2024 to
December 31, 2024)
Net sales
Millions of yen(% indicates changes from the previous corresponding period.)
Basic
Profit attributable toOrdinary profit
earnings perowners of parent
share

Operating profit

Millions of yen%

Millions of yen%

Yen

Full year
49,500
7.1
5,200
4.4
5,300
(Note) Revision to the financial results forecast announced most recently : No

4.9

3,500

(5.3)

176.15*%

Millions of yen%

Notes:(1)

Significant changes in the scope of consolidation during the interim period under review: Yes
New: 1 (Company name: Tanpopo Shiki no Mori, Exclusion: - (Company name: - )(Note) For details, please refer to “(3) Notes to Interim Consolidated Financial Statements, (Changes insignificant subsidiaries during the interim period under review)” on page 8 of the attached document.

(2)

Accounting policies adopted specially for the preparation of interim consolidated financial statements: No(3)

Changes in accounting policies, changes in accounting estimates and retrospective restatement

(4)

1)

Changes in accounting policies due to the revision of accounting standards

: No

2)

Changes in accounting policies other than 1) above

: No

3)

Changes in accounting estimates

: No

4)

Retrospective restatement: No

Total number of issued shares (common shares)
1) Total number of issued shares at the end As of June 30, 2024of the period (including treasury shares):2)

Total number of treasury shares at the end As of June 30, 2024of the period:

3)

Average number of shares outstanding
during the period (Interim period)

Six months ended June30, 2024

21,746,675 As of December 31,
shares 2023

21,746,675
shares

As of December 31,
2023

1,876,739 shares

1,869,193 shares

19,873,365 Six months ended Juneshares 30, 2023

20,054,756
shares*Interim consolidated financial results are not subject to review by certified public accountants or auditing firms.

*

Explanation on appropriate use of financial results forecast, and other special notes(Caution regarding forward-looking statements, etc.)
Please refer to “(3) Explanation on Consolidated Financial Results Forecasts and Other Forward-looking
Statements” on page 3 of the attached document for the assumptions used in developing the financial results
forecasts. The forecast figures are based on information available at the present time, and contain someuncertainties. Actual results may differ from the above forecasts due to changes in business conditions and otherfactors.

(Reference) Non-consolidated Financial Results Forecast
Non-consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2024 (January 1, 2024 to
December 31, 2024)(% indicates changes from the previous corresponding period.)
Net sales
Millions of yen

Ordinary profit%

Millions of yen

Basic earnings
per share

Net profit%

Full year
38,000
4.8
5,100
5.6
(Note) Revision to the financial results forecast announced most recently: No

Millions of yen

%

Yen

3,500

(0.7)

176.15

○Table of Contents of Attachments
1.

Overview of Operating Results ....................................................................................................................... 2(1) Overview of Operating Results for the Interim Period under Review ......................................................... 2(2) Overview of Financial Position for the Interim Period under Review ......................................................... 2(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Statements .............. 3

2.

Interim Consolidated Financial Statements and Major Notes(1) Interim Consolidated Balance Sheets .......................................................................................................... 4(2) Interim Consolidated Statements of Income and Comprehensive Income................................................... 6(Interim Consolidated Statements of Income) ............................................................................................. 6(Interim Consolidated Statements of Comprehensive Income) ................................................................... 7(3) Notes to Interim Consolidated Financial Statements ................................................................................... 8(Notes on Going Concern)........................................................................................................................... 8(Notes on Substantial Changes in the Amount of Shareholders' Equity) ..................................................... 8(Changes in significant subsidiaries during the interim period under review) ............................................. 8(Segment Information) ................................................................................................................................ 8(Business Combination) ............................................................................................................................ 10(Significant Subsequent Events) ................................................................................................................ 11

3.

(Reference)(1) (Summary) Interim Non-consolidated Statements of Income for the Period of the Fiscal Year Ending
December 31, 2024 .................................................................................................................................... 12

-1-

1.

Overview of Operating Results(1) Overview of Operating Results for the Interim Period under Review
During the interim period under review (From January 1, 2024, to June 30, 2024), the Japanese economy was on a moderate
recovery trend due to the robust corporate earnings, although consumer spending stalled. On the other hand, the impact of the
Bank of Japan's lifting of its negative interest rate policy and foreign exchange fluctuations require close monitoring of future
trends. In addition, there is a possibility that a downturn in overseas economic activity, such as the impact of continued highinterest rate levels in Europe and the U.S., concerns about the outlook for the Chinese economy, and growing tension in the
Middle East, will depress the Japanese economy.
Amid this social and economic environment, major manufacturing companies maintained upfront investment in R&D forcompetitive advantage, and requests to the Group remained firm. Based on the corporate philosophy "Heart to Heart," the Group
has set a vision of "Team Alps," and aims to raise corporate value by taking on new business challenges with the full strengthof the Group. In the engineer assignment business, which is the core of the Group, we maintained the rate of operation at a highlevel as requests from customers remained firm. In addition, we made company-wide efforts to strengthen technical educationin cutting-edge technologies and the environment where growth is expected, and implemented initiatives in conjunction withsales policies such as team assignment. As a result of the above measures, both the total number of staff in operation and thecontract unit price have increased. Driven by these various factors in the engineer assignment business, in the interim period
under review, the Company recorded net sales of 24,098 million yen (up 5.6% year on year), operating profit of 2,457 million
yen (up 3.2% year on year), and ordinary profit of 2,515 million yen (up 1.8% year on year). Also, the Company recorded net
profit attributable to owners of parent of 1,603 million yen (down 11.6% year on year) due to the absence of gains on sales of
securities that were recorded in the same period of the previous fiscal year. To create strengths for the next generation, theCompany is strengthening its outsourcing service business, developing new business fields such as agriculture and nursing care,and expanding its manufacturing business.
The results of operations by segment are as follows:1)

Outsourcing Service BusinessIn the outsourcing services business, which is the Company’s main business, we are engaged in the acceptance ofconsignment of technical projects, office staff assignment, job placement, and other services, with a focus on engineer
assignment. Even in the fierce competition for talent, we focused on measures such as referral recruiting to secure talented
personnel. In addition, we successfully maintained the rate of operation at a high level and raised the contract unit price bystrengthening technical education in cutting-edge technologies and the environment where growth is expected, andimplementing initiatives in conjunction with sales policies such as team assignment. As a result, net sales for the interim
period under review were 22,445 million yen (up 7.5% year on year), and operating profit was 2,253 million yen (up 13.9%
year on year).
2)

Global BusinessIn the global business, the Company provides design, manufacturing, installation and maintenance services for plantfacilities, machinery and equipment, and staffing services overseas. As large-scale projects continuing from the year before
last were completed last year, net sales for the interim period under review were 1,618 million yen (down 17.0% year onyear), and operating profit was 225 million yen (down 43.8% year on year).

(2) Overview of Financial Position for the Interim Period under Review
Total assets at the end of the interim period under review were 26,834 million yen, an increase of 1,809 million yen from theend of the previous consolidated fiscal year. This was mainly due to an increase in notes and accounts receivable - trade, andcontract assets. Total liabilities were 9,081 million yen, an increase of 922 million yen from the end of the previous consolidated
fiscal year. This was mainly due to an increase in provision for bonuses. As a result, net assets increased by 886 million yen
from the end of the previous consolidated fiscal year to 17,753 million yen.
Accordingly, the capital adequacy ratio was 66.0%.

-2-

(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Statements
As for the forecast for the fiscal year ending December 31, 2024, there are no changes to the consolidated and nonconsolidated forecasts announced on February 13, 2024, as the current requests for assignment to the Group remain strong.

-3-2. Interim Consolidated Financial Statements and Major Notes(1) Interim Consolidated Balance Sheets(Thousands of yen)Previous consolidated fiscal
year(December 31, 2023)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract
assetsMerchandise and finished goods
Work in process
Raw materials and supplies
Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Land
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Shares of subsidiaries and associates
Deferred tax assets
Other
Total investments and other assets
Total non-current assets
Total assets-4-Interim period under review(June 30, 2024)

11,430,737

11,603,977

6,547,477
1,074
484,449
92,967
706,446
19,263,151

7,114,203－
319,980
107,777
730,339
19,876,279

3,366,419(1,877,089)
1,489,329
1,541,637
652,045(527,192)
124,852
3,155,819

3,883,289(1,932,595)
1,950,694
1,803,637
687,895(536,694)
151,200
3,905,532

159,111
124,947
284,059

271,249
123,647
394,897

1,023,942
32,218
777,764
488,730
2,322,655
5,762,534
25,025,686

1,241,963
32,218921,750
462,118
2,658,051
6,958,481
26,834,761

(Thousands of yen)Previous consolidated fiscal
year(December 31, 2023)
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Accounts payable - other
Income taxes payable
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-5-Interim period under review(June 30, 2024)

355,993
224,262
1,941,659
760,350
1,745,647

356,638
215,589
1,994,829
1,151,085
2,219,166

31,5002,778,929
7,838,342

14,4402,804,331
8,756,080

21,014
160,777
138,736
320,527
8,158,870

15,018
157,955
152,080
325,054
9,081,134

2,347,163
2,798,742
13,688,994(2,739,199)
16,095,701

2,347,163
2,811,011
14,279,594(2,725,230)
16,712,539

480,241
246,304
726,545
44,56816,866,815
25,025,686

634,680
356,591
991,272
49,81417,753,626
26,834,761

(2) Interim Consolidated Statements of Income and Comprehensive Income(Interim Consolidated Statements of Income)(Thousands of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Subsidy income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on extinguishment share-based compensation
expensesForeign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities

Previous interim period(From January 1, 2023 toJune 30, 2023)
22,820,591
17,387,690
5,432,900
3,052,063
2,380,837

Interim period under review(From January 1, 2024 toJune 30, 2024)
24,098,243
18,456,484
5,641,759
3,184,610
2,457,148

4,140
16,137
8,596
17,76164,618111,253

2,883
17,71019,964－38,89079,449

581

1,525

7,133
－
13,836
21,5512,470,539

4,439
12,925
1,849
20,7382,515,858

364
257,611257,975

163
－
163

30
－
30
2,728,484
1,013,013(95,750)
917,262
1,811,221(3,661)
1,814,883

2,383
15,00017,383
2,498,639
1,093,582(207,120)
886,462
1,612,176
8,393
1,603,783

Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Cancellation penalty
Total extraordinary losses
Net profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net profit
Profit (loss) attributable to non-controlling interests
Profit attributable to owners of parent-6-

(Interim Consolidated Statements of Comprehensive Income)(Thousands of yen)

Net profit
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:Comprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests

Previous interim period(From January 1, 2023 toJune 30, 2023)
1,811,221Interim period under review(From January 1, 2024 toJune 30, 2024)
1,612,176

51,90969,059120,969
1,932,190

154,439
113,574
268,0131,880,190

1,937,872

1,868,510(5,681)

11,680-7-

(3) Notes to Interim Consolidated Financial Statements(Notes on Going Concern)
Not applicable.

(Notes on Substantial Changes in the Amount of Shareholders' Equity)
Not applicable.

(Changes in significant subsidiaries during the interim period under review)
As Tanpopo Shiki no Mori was newly acquired during the interim period under review, it is included in the scope of
consolidation. Tanpopo Shiki no Mori is not a specified subsidiary.

(Segment Information)[Segment Information]
Ⅰ

For the previous interim period (From January 1, 2023 to June 30, 2023)
1.

Information on the Amount of Sales and Profit or Loss for Each Reportable Segment(Thousands of yen)
Reportable segment
Other

Total

Outsourcing
Service Business

Global Business

20,870,372

1,950,219

22,820,591－

22,820,591

－

－

－

－

－

Total

20,870,372

1,950,219

22,820,591－

22,820,591

Segment profit

1,978,523

401,053

2,379,577－

2,379,577

Total

Net sales
Sales to externalcustomers
Intersegment sales andtransfers

2.

Differences between the Total Amount of Reportable Segments Profit or Loss and the Amounts Reported in Interim
Consolidated Statements of Income and the Details of the Differences (Matters Concerning Reconciliation ofDifferences)(Thousands of yen)
ProfitAmountReportable segments total

2,379,577

Profit in “Others”－

Intersegment transaction elimination

1,260

Operating profit in Interim Consolidated
Statements of Income

2,380,837-8-

ⅡFor the interim period under review (From January 1, 2024 to June 30, 2024)
1.

Information on the Amount of Sales and Profit or Loss for Each Reportable Segment(Thousands of yen)
Reportable segment

Other(Note)

Total

Outsourcing
Service Business

Global Business

22,445,204

1,618,095

24,063,299

34,94424,098,243

－

－

－

－

－

22,445,204

1,618,095

24,063,299

34,94424,098,243

2,253,864

225,3832,479,247(23,567)

2,455,680

Total

Net sales
Sales to externalcustomers
Intersegment sales andtransfers
Total
Segment profit (loss)(Note) "Others" is a business segment not included in the reportable segments and includes Elderly Housing with Home-care
Services.
2.

Differences between the Total Amount of Reportable Segments Profit or Loss and the Amounts Reported in Interim
Consolidated Statements of Income and the Details of the Differences (Matters Concerning Reconciliation ofDifferences)(Thousands of yen)
ProfitAmountReportable segments total

2,479,247

Loss in “Others”(23,567)Intersegment transaction elimination

1,468

Operating profit in Interim Consolidated
Statements of Income

2,457,1483.

Matters Concerning Changes in Reportable Segments
The “Others” business segment has been newly added as businesses not included in the reportable segments in theinterim period under review as the Company acquired shares of Tanpopo Shiki no Mori and included it in the scope of
consolidation.
Segment information for the previous interim period is presented based on the classification method after the change.

4.

Information on Impairment Loss of Fixed Assets or Goodwill for Each Reportable Segment(Significant Changes in the Amount of Goodwill)
In "Others," goodwill was recognized due to the acquisition of all shares of Tanpopo Shiki no Mori and its inclusion in
the scope of consolidation. The increase in goodwill due to this event was 166,001 thousand yen in the interim period
under review.

-9-(Business Combination)(Business Combination by Acquisition)
At a meeting of the Board of Directors held on September 7, 2023, the Company resolved to acquire all of the shares ofTanpopo Shiki no Mori, and make it a subsidiary, and concluded a share transfer agreement on the same day. The acquisition of
the shares was completed on January 4, 2024.
(1)

Overview of Business Combination
1) Name of the Acquired Company and Its Business
Name of the acquired company
Tanpopo Shiki no Mori
Description of the business
Elderly housing with home-care services, in-home care support, and home-visit care
2)

Main Reason for the Business Combination
Since its foundation in 1968, the Company has supported the development of Japanese manufacturing by developing
engineers with both technical capabilities and resourcefulness and providing advanced technical services under its "Heart toHeart" corporate philosophy. Subsequently, in 2021, the Company established Alps Care Heart Corporation, and is expanding
the business in the field of nursing care, which faces social challenges such as a shortage of nursing care personnel. A new
member to the Group, Tanpopo Shiki no Mori, was established on November 1, 2023 through an absorption-type split by
Sakamoto Kikaku Co., Ltd. The business is centered on elderly housing with home-care services, as well as in-home care
support and home-visit care.
Going forward, by strengthening synergies with Alps Care Heart Corporation, and by gathering know-how, the Group willrealize the provision of a variety of services for the elderly and enhance our corporate value.

3)

Date of the Business Combination
January 4, 2024 (Date of acquisition of shares with cash consideration)
January 1, 2024 (Deemed acquisition date)

4)

Legal Form of the Business Combination
Acquisition of shares

5)

Name of the Combined Entity
The name has not been changed.

6)

Ratio of Voting Rights Acquired
100%

7)

Main Rationale for Determining the Acquired Company
This is because the Company acquired shares in exchange for cash.

(2)

Period of the acquired company's financial results included in the interim consolidated statements of income
From January 1, 2024 to June 30, 2024

(3)

Breakdown of Acquisition Cost and Consideration of the Acquired Company by TypeConsideration for the acquisition
Cash
246,962 thousand yen
Acquisition cost
246,962 thousand yen(4)

Details and Amounts of Major Acquisition-related Expenses
Advisory fees
27,397 thousand yen

(5)

(6)

Amount of Goodwill, Cause, Method and Period of Amortization
1) Amount of Goodwill
166,001 thousand yen
2)

Cause
This was incurred due to future excess earning power expected from future business development.

3)

Method and Period of Amortization
Straight-line method over 7 years

Amounts of Assets to Be Received and Liabilities to Be Assumed on the Date of Business Combination and Major Components
Current assets
19,761 thousand yen
Non-current assets
771,055 thousand yen
Total assets
790,816 thousand yen
Current liabilities
Non-current liabilities
Total liabilities

11,688 thousand yen
698,167 thousand yen
709,855 thousand yen-10-(Significant Subsequent Events)(Transactions under common control)
Absorption-type merger between consolidated subsidiaries
At a meeting of the Board of Directors held on May 13, 2024, the Company resolved to conduct an absorption-type merger
with Alps Care Heart Corporation, a consolidated subsidiary of the Company, as the surviving company and with Tanpopo Shikino Mori, another consolidated subsidiary of the Company, as the absorbed company. The Company completed this merger on
July 1, 2024.
(1)

Overview of Merger
Absorption-type merger of consolidated subsidiaries
1)

Name of the Combining Company and Its Businessa. Combining company (Surviving company)
Name of the Entity: Alps Care Heart Corporation
Business: Home-visit care, other in-home care servicesb.

Combined company (Absorbed company)
Name of the Entity: Tanpopo Shiki no Mori
Business: Elderly housing with home-care services, in-home care support, and home-visit care

2)

Purpose of Business Combination
The Company decided to conduct this absorption-type merger for the purpose of accelerating the growth of the carebusiness by consolidating the care-related business in the Group into Alps Care Heart Corporation to strengthen the ties
among businesses and offering a variety of services for the elderly.
3)Date of the Business Combination (Effective Date)
July 1, 2024

4)

Legal Form of the Business Combination
Absorption-type merger with Alps Care Heart Corporation as the surviving company and Tanpopo Shiki no Mori as

the absorbed company
5)

Name of the Combined Entity
Alps Care Heart Corporation(2)

Overview of Accounting
In accordance with the "Accounting Standard for Business Combinations" (ASBJ Statement No. 21, January 16, 2019) andthe "Guidance on Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures"(ASBJ Guidance No. 10, January 16, 2019), the Company recorded this merger as a transaction under common control.

-11-

3.

(Reference)(1) (Summary) Interim Non-consolidated Statements of Income for the Period of the Fiscal Year Ending December 31, 2024

Account

Previous interim period(From January 1, 2023 toJune 30, 2023)

Interim period under review(From January 1, 2024 toJune 30, 2024)

Amount (Thousands of yen)Amount (Thousands of yen)Ⅰ

Net sales

17,600,442

18,849,741

Ⅱ

Cost of sales

13,229,664

14,209,405

Gross profit

4,370,778

4,640,336

2,317,767

2,417,185

Operating profit

2,053,010

2,223,150

Ⅳ Non-operating income

351,612

310,635

Ⅴ

27,960207,363

Ordinary profit

2,376,661

2,326,422

Ⅵ Extraordinary income

288,116163

Ⅶ Extraordinary losses

30

17,2002,664,747

2,309,386

Income taxes - current

891,459

937,060

Income taxes - deferred(78,893)(195,967)

Net profit

1,852,180

1,568,293

Ⅲ Selling, general and administrative
expensesNon-operating expenses

Net profit before income taxes(Notes) 1.

The interim statements of income are not subject to review in the statutory disclosure.

2. The interim statements of income are prepared in accordance with the "Regulation on Financial Statements" and arepresented in summarized form.

-12-