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 Three Months Ended March 31, 2024 [Japanese GAAP]May 13, 2024
Company name:
Altech Corporation
Stock exchange listing: Tokyo
Code number:
4641
URL https://www.alpsgiken.co.jp/
Representative: Atsushi Imamura President
Contact:
Hisaki Kikuchi
Corporate Officer and General Manager of Corporate PlanningPhone: +81-42 (774) 3333
Scheduled date of filing quarterly securities report:
May 14, 2024
Scheduled date of commencing dividend payments:－
Availability of supplementary briefing material on quarterly financial results: No
Schedule of quarterly financial results briefing session:
No(Amounts of less than one million yen are rounded down.)

1. Consolidated Financial Results for the Three Months Ended March 31, 2024 (January 1, 2024 to March 31, 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%

854(31.4)

1,244

55.6

Three months ended March
11,8406.3
1,305 (11.4)
1,330 (12.0)
31, 2024:
March 31, 2023:
11,138
10.4
1,473
25.2
1,511
26.8
(Note) Comprehensive income: Three months ended March 31, 2024: ¥1,071 million [-10.8%]
Three months ended March 31, 2023: ¥1,201 million [51.9%]
Basic earnings per
share

Diluted earnings
per share

Yen

Three months ended March
31, 2024:
March 31, 2023:

Yen

42.98

－

61.80

－

(2) Consolidated Financial Position
Total assets

Net assets

Millions of yen

Capital adequacy ratio％

Millions of yen

As of March 31, 2024:
26,38916,90863.9
As of December 31, 2023
25,025
16,866
67.2(Reference) Equity: As of March 31, 2024: ¥16,859 million As of December 31, 2023: ¥16,822 million

2. Dividends
Annual dividends
1st quarter-end
Yen

2nd quarter3rd quarter-end
end
Yen

Yen

Year-end
Yen

Fiscal year ended December
52.00
51.00
－
－
31, 2023
Fiscal year ending December－
31, 2024
Fiscal year ending December
44.00
44.00
－
31, 2024 (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 ending December 31, 2023:
Ordinary dividend 42 yen
55th Anniversary dividend 10 yen

Total
Yen

103.0088.00

3. 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.)
Profit attributable to Basic earnings per
Operating profit
Ordinary profit
owners of parent
share

Net sales
Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen

Six months ending
23,5003.0
2,000 (16.0)
2,000 (19.0)
June 30, 2024
Full year
49,500
7.1
5,200
4.4
5,300
4.9
(Note) Revision to the financial results forecast announced most recently: No%

Yen

1,300 (28.4)

65.43

3,500

176.15(5.3)* Notes:(1)

Changes in significant subsidiaries during the three months ended March 31, 2024: No(changes in specified subsidiaries resulting in changes in scope of consolidation):

New: － (Company name), Exclusion: － (Company name)(2)

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

Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards : No
2) Changes in accounting policies other than 1) above: No3) Changes in accounting estimates: No4) Retrospective restatement
: No

(4)

Total number of issued shares (common shares)
As of1) Total number of issued shares at the end of As of March 31,
21,746,675 shares December 31, 2023
2024:
the period (including treasury shares):
As of December 31,
2) Total number of treasury shares at the end As of March 31,
1,877,856 shares 2023
2024:
of the period:3) Average number of shares outstanding
Three months ended
Three months ended
19,869,137 shares March 31, 2023:
March 31, 2024:
during the period:

21,746,675 shares

1,876,739 shares

20,144,576 shares*

Quarterly consolidated financial results are not subject to quarterly 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 “Explanation on Consolidated Financial Results Forecasts and Other Forward-looking Statements” on page 2of the attached document for the assumptions used in developing the financial results forecasts. The forecast figures are basedon information available at the present time, and contain some uncertainties. Actual results may differ from the above forecasts
due to changes in business conditions and other factors.

(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
Six months ending
June 30, 2024
Full year

Ordinary profit

Net profit

Basic earnings per share

Millions of yen%

Millions of yen%

Millions of yen%

Yen

18,700

6.2

2,300

(3.2)

1,600

(13.6)

80.52

38,000

4.8

5,100

5.6

3,500

(0.7)

176.15(Note) Revision to the financial results forecast announced most recently: No

○Table of Contents of Attachments

1.

2.

Qualitative Information on Financial Results for the Period Under Review ............................................ 2(1)

Explanation of Operating Results.................................................................................................... 2(2)

Explanation of Financial Position ................................................................................................... 2(3)

Explanation of Consolidated Financial Results Forecast and Other Forward-looking Statements .. 2

Quarterly Consolidated Financial Statements(1)

Quarterly Consolidated Balance Sheets .......................................................................................... 3(2)

Quarterly Consolidated Statements of Income and Comprehensive Income ................................... 5
Quarterly Consolidated Statements of Income(For the three months)............................................................................................................ 5
Quarterly Consolidated Statements of Comprehensive Income(For the three months)............................................................................................................ 6(3)

Notes to Quarterly Consolidated Financial Statements ................................................................... 7(Notes on Going Concern) .............................................................................................................. 7(Notes on Substantial Changes in the Amount of Shareholders' Equity)......................................... 7(Changes in significant subsidiaries during the three months ended March 31, 2024) .................... 7(Segment Information) .................................................................................................................... 7(Business Combination) .................................................................................................................. 9(Significant Subsequent Events) ................................................................................................... 10

3.

(Reference)(1)(Summary) Quarterly Non-consolidated Statements of Income for the Three Months
Ended March 31, 2024 .................................................................................................................. 11-1-

1. Qualitative Information on Financial Results for the Period Under Review(1) Explanation of Operating Results
During the three months under review (From January 1, 2024 to March 31, 2024), the Japanese economy was on amoderate recovery trend due to the higher appetite for investment among corporations backed by strong financial
performance with continued improvement of the employment and income situation. On the other hand, the impact of the
Bank of Japan's lifting of its negative interest rate policy and the continued depreciation of the yen require closemonitoring of future trends. In addition, there is a possibility that a downturn in overseas economic activity, such as theimpact of global monetary tightening, 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
for competitive 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 strength of the Group. In the engineer assignment
business, which is the core of the Group, we strengthened our recruitment measures and worked to secure talented
engineers. In addition, we made company-wide efforts to strengthen technical education in cutting-edge technologies andthe environment where growth is expected, and implemented initiatives in conjunction with sales policies such as teamassignment. As a result of the above measures, both the total number of staff in operation and the contract unit price haveincreased. Driven by these various factors in the engineer assignment business, in the three months under review, theCompany recorded net sales of 11,840million yen (up 6.3% year on year), operating profit of 1,305 million yen (down
11.4% year on year), ordinary profit of 1,330 million yen (down 12.0% year on year), and net profit attributable to ownersof parent of 854 million yen (down 31.4% year on year).
To create strengths for the next generation, the Company 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 priceby strengthening 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 threemonths under review were 11,196 million yen (up 9.7% year on year), and operating profit was 1,204 million yen (up1.8% 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 three months under review were 626 million yen (down 33.1%
year on year), and operating profit was 99 million yen (down 65.8% year on year).

(2) Explanation of Financial Position
Total assets at the end of the three months under review were 26,389 million yen, an increase of 1,363 million yen
from the end of the previous consolidated fiscal year. This was mainly due to an increase in notes and accounts receivable- trade, and contract assets. Total liabilities were 9,481 million yen, an increase of 1,322 million yen from the end of theprevious consolidated fiscal year. This was mainly due to an increase in provision for bonuses. As a result, net assets
increased by 41 million yen from the end of the previous consolidated fiscal year to 16,908 million yen.
Accordingly, the capital adequacy ratio was 63.9%.

(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.

-2-

2.

Quarterly Consolidated Financial Statements(1)

Quarterly 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

Three months under review(March 31, 2024)

11,430,737

10,749,441

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

7,062,279
1,074
300,345
105,620854,807

19,263,151

19,073,570

3,366,419(1,877,089)
1,489,329

3,871,352(1,904,955)
1,966,396

1,541,637
652,045(527,192)

1,803,637
660,396(536,402)

124,852

123,994

3,155,819

3,894,027

159,111
124,947

298,181130,607284,059

428,788

Investments and other assets
Investment securities
Shares of subsidiaries and associates
Deferred tax assets
Other1,023,942
32,218
777,764
488,730

1,251,548
32,2181,236,519
472,910

Total investments and other assets

2,322,655

2,993,197

Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets

Total non-current assets
Total assets-3-

5,762,534

7,316,014

25,025,686

26,389,584

(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

Three months under review(March 31, 2024)

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

335,290
219,126
1,591,121
1,049,444
3,123,445

31,5002,778,929

7,220
2,833,139

Total current liabilities
Non-current liabilities
Long-term borrowings
Retirement benefit liability
Other7,838,342

9,158,788

21,014
160,777
138,736

17,160159,883
145,589

Total non-current liabilities

320,527

322,632

8,158,870

9,481,420

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

2,347,163
2,798,742
13,529,862(2,739,199)

16,095,701

15,936,568

480,241
246,304

641,476
281,344726,545922,820

44,56848,774

16,866,815

16,908,163

25,025,686

26,389,584

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

-4-

(2)

Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income(For the three months)

For the three months ofprevious fiscal year
(From January 1, 2023 toMarch 31, 2023)
11,138,013
8,278,882
2,859,131(Thousands of yen)
For the three months underreview(From January 1, 2024 toMarch 31, 2024)
11,840,463
8.999,980
2,840,482

Selling, general and administrative expenses

1,385,830

1,535,478

Operating profit

1,473,300

1,305,004

1,870
100
4,381

876
100
15,043

19,91422,361－
18,725

48,62734,744

345

1,108

4,032
4,789

2,751
1,459

－

Net sales
Cost of sales
Gross 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
expenses
Loss on investments in investment partnerships
Foreign exchange losses
Other

1,024

4,046
323

Total non-operating expenses

10,192

9,690

1,511,736

1,330,059

299

99

257,611－257,911

99

0

2,383

－

15,000Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Cancellation penalty
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent-5-

0

17,383

1,769,648
961,705(442,058)

1,312,775
981,500(525,820)

519,646

455,679

1,250,001

857,096

5,081

3,045

1,244,920

854,050

Quarterly Consolidated Statements of Comprehensive Income(For the three months)

For the three months ofprevious fiscal year
(From January 1, 2023 toMarch 31, 2023)
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income(Thousands of yen)
For the three months underreview(From January 1, 2024 toMarch 31, 2024)

1,250,001

857,096(65,820)
17,535

161,234
53,509(48,284)

214,744

Comprehensive income

1,201,716

1,071,840

Comprehensive income attributable to:Comprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests

1,196,173

1,067,635

5,543

4,205

-6-

(3) Notes to Quarterly 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 three months ended March 31, 2024)
As Tanpopo Shiki no Mori was newly acquired during the three months 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 three months ended March 31, 2023 (From January 1, 2023 to March 31, 2023)
1.
Information on the Amount of Sales and Profit or Loss for Each Reportable Segment(Thousands of yen)
Reportable segment
Outsourcing Service
Business

OthersGlobal Business

Total

Total

Net sales
Sales to externalcustomers
Intersegment sales andtransfers－

10,201,659

936,353

11,138,013

－

6,905

6,905

－

6,905

Total

10,201,659

943,259

11,144,919－

11,144,919

Segment profit

1,183,137

289,533

1,472,670－

1,472,670

2.

11,138,013

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

1,472,670

Profit in “Others”-

Intersegment transaction elimination

630

Operating profit in Quarterly Consolidated
Statements of Income

1,473,300-7-

Ⅱ For the three months ended March 31, 2024 (From January 1, 2024 to March 31, 2024)
1. Information on the Amount of Sales and Profit or Loss for Each Reportable Segment(Thousands of yen)
Reportable segment
Others (Note)

Total

Outsourcing
Service Business

Global Business

11,196,225

626,760

11,822,986

17,477

11,840,463

－

－

－

－

－

Total

11,196,225

626,760

11,822,986

17,477

11,840,463

Segment profit

1,204,272

99,0491,303,321

1,036

1,304,358

Total

Net sales
Sales to externalcustomers
Intersegment sales andtransfers(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
Quarterly Consolidated Statements of Income and the Details of the Differences (Matters Concerning Reconciliationof Differences)(Thousands of yen)
ProfitAmountReportable segments total

1,303,321

Profit in “Others”

1,036

Intersegment transaction elimination

646

Operating profit in Quarterly Consolidated
Statements of Income

1,305,004

3. Matters Concerning Changes in Reportable Segments
The “Others” business segment has been newly added as businesses not included in the reportable segments in thethree months under review as the Company acquired shares of Tanpopo Shiki no Mori and included it in the scopeof consolidation.
Segment information for the three months of the previous fiscal year 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 inclusionin the scope of consolidation. The increase in goodwill due to this event was 166,001 thousand yen in the threemonths under review.

-8-

(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 acquisitionof 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
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 to Heart" 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 shortageof 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 withhome-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, theGroup will realize 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 quarterly consolidated statements of income
From January 1, 2024 to March 31, 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) 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(6)

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
771,816 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-9-(Significant Subsequent Events)(Transactions under common control)
Merger Between Consolidated Subsidiaries
At a meeting of the Board of Directors held on May 13, 2024, the Company resolved to conduct an absorption-typemerger with Alps Care Heart Corporation, a consolidated subsidiary of the Company, as the surviving company and with
Tanpopo Shiki no Mori, another consolidated subsidiary of the Company, as the absorbed company.
(1)

Overview of Merger
Absorption-type merger of consolidated subsidiaries
1) Name of the Combining Company and Its Businessa.

Combining company (Surviving company)
Company name: Alps Care Heart Corporation
Business: Home-visit care, other in-home care servicesb.

Combined company (Absorbed company)
Company name: 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 theties 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)
and the "Guidance on Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures"(ASBJ Guidance No. 10, January 16, 2019), the Company plans to record this merger as a transaction under common
control.

-10-

3.

(Reference)(1)(Summary) Quarterly Non-consolidated Statements of Income for the Three Months Ended March 31, 2024

Account

For the three months of previous fiscal
year(From January 1, 2023 toMarch 31, 2023)

For the three months under review(From January 1, 2024 toMarch 31, 2024)

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

I Net sales

8,471,463

9,188,524

II Cost of sales

6,325,391

6,985,240

2,146,071

2,203,283

1,014,971

1,156,216

Operating profit

1,131,100

1,047,066

IV Non-operating income

216,885

147,950

V Non-operating expenses

10,57489,832

Ordinary profit

1,337,411

1,105,184

VI Extraordinary income

257,91199

VII Extraordinary losses

0

17,2001,595,322

1,088,084

Income taxes - current

840,058

800,863

Income taxes - deferred(391,473)(460,549)

Profit1,146,738

747,770

Gross profit
III Selling, general and administrative
expenses

Net profit before income taxes(Note)

1.
2.

The quarterly statements of income are not subject to review in the statutory disclosure.
The quarterly statements of income are prepared in accordance with the "Regulation on Quarterly Financial
Statements" and are presented in summarized form.

-11-