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 Fiscal Year Ended December 31, 2023
[Japanese GAAP]
February 13, 2024
Company name:
Altech Corporation
Stock exchange listing: Tokyo
Code number:
4641
URL
https://www.alpsgiken.co.jp/
Representative:
Atsushi Imamura
President
Contact:
Nobuyuki Watanabe
Vice President General Manager
Phone:+81-42 (774) 3333
Scheduled date of the Annual General Meeting of Shareholders
March 26, 2024
Scheduled date of commencing dividend payments:
March 27, 2024
Scheduled date of filing annual securities report:
March 27, 2024
Availability of supplementary briefing material on annual financial results: Yes
Schedule of annual financial results briefing session:
Yes (for analysts and institutional investors)(Amounts of less than one million yen are rounded down.)

1. Consolidated Financial Results for the Fiscal Year Ended December 31, 2023 (January 1, 2023 to December 31, 2023)(1)
Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Fiscal year ended
December 31, 2023
December 31, 2022

Operating profit

Profit attributable toowners of parent

Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

46,216

5.9

4,982

7.2

5,053

10.8

3,696

8.2

43,647

11.2

4,649

19.9

4,560

(0.3)

3,416

10.4

(Note) Comprehensive income: Fiscal year ended December 31, 2023 3,842 million yen (13.1%)
Fiscal year ended December 31, 2022 3,398 million yen (1.4%)

Fiscal year ended
December 31, 2023
December 31, 2022

Net profit per share

Diluted earnings per
share

Return on equity

Operating profit
marginReturn on asset

Yen

Yen

%

%

%

185.16

－

22.7

20.5

10.8

169.47

－

22.6

19.5

10.7

(Reference) Equity in earnings (losses) of affiliated companies: Fiscal year ended December 31, 2023 － million yen
Fiscal year ended December 31, 2022 － million yen(2)

Consolidated Financial Position
Total assets

Net assets

Net assets per share

Millions of yen%

Yen

25,025

16,86667.2

846.62

24,274

15,74164.6

778.68

Fiscal year ended
December 31, 2023
December 31, 2022

(Reference) Equity capital As of December 31, 2023
As of December 31, 2022
(3)

Capital adequacy ratio

Millions of yen

16,822 million yen
15,687 million yen

Consolidated Cash Flows
Cash flows fromoperating activities

Fiscal year ended
December 31, 2023
December 31, 2022

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at end of year

Millions of yen

Millions of yen

Millions of yen

Millions of yen

3,213

138

(2,684)

10,737

3,663

(125)

(2,881)

10,003

2.

Dividends
Annual dividends
1st quarter- 2nd quarter- 3rd quarterYear-end
end
end
end
Yen
Yen
Yen
Yen

Fiscal year ended
December 31, 2022
December 31, 2023
Fiscal year ending
December 31, 2024
(Forecast)

3.

Total
dividends

Total

Payout ratio(Consolidated)

Dividend to
net assets(Consolidated)%%

Yen Millions of yen

－

38.00

－

47.00

85.00

1,711

50.2

11.4

－

52.00

－

51.00

103.00

2,046

55.6

12.7

－

44.00

－

44.00

88.00

－

Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2024
(January 1, 2024 to December 31, 2024)
Net sales
Millions of yen

Six months ending
June 30, 2024
Full year(% indicates changes from the previous corresponding period.)
Profit attributable toOrdinary profit
Net profit per shareowners of parent

Operating profit%

Yen

23,500

3.0% Millions of yen

2,000(16.0)% Millions of yen

2,000(19.0)% Millions of yen

1,300(28.4)

65.43

49,500

7.1

5,200

4.4

5,300

4.9

3,500

(5.3)

176.15*Notes(1) Changes in significant subsidiaries during the period under review:Yes(changes in specified subsidiaries resulting in changes in scope of consolidation):New:－ (Company name)
Exclusion:
1 company (Company name: PANA R&D CO., LTD.)(Note) For details, please refer to “(5) Notes to Consolidated Financial Statements, (Changes in significant
subsidiaries during the period under review)” on page 12 of the attached document.
(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards:

Yes2) Changes in accounting policies other than 1) above:No3) Changes in accounting estimates:

No4) Retrospective restatement:No(3) Total number of issued shares (common shares)
1)

Total number of issued shares at the end of the period (including treasury shares):December 31, 2023
21,746,675 shares
December 31, 2022
21,746,675 shares

2)

Number of treasury shares at the end of the period:
December 31, 2023
December 31, 2022

1,876,739 shares
1,600,065 shares

Average number of shares outstanding during the period:
Fiscal year ended December 31, 2023
Fiscal year ended December 31, 2022

19,962,073 shares
20,162,291 shares

3)(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended December 31, 2023 (January 1, 2023 to December 31, 2023)(1) Non-consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Fiscal year ended
December 31, 2023
December 31, 2022

Operating profit

Net profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

36,274

8.5

4,632

8.4

4,827

8.2

3,523

4.1

33,435

8.2

4,271

25.0

4,461

7.7

3,384

18.0

Net profit per
share
Fiscal year ended
December 31, 2023
December 31, 2022

Ordinary profit

Diluted earnings per
share
Yen

Yen

176.52－167.84－

(2) Non-consolidated Financial Position
Total assets

Net assets

Capital adequacy ratio

Millions of yen%

Yen

21,72814,91068.6

750.4320,702

14,011

67.7

695.47

As of December 31,
2023
December 31, 2022

(Reference) Equity capital As of December 31, 2023
As of December 31, 2022
2.

Net assets per share

Millions of yen

14,910 million
14,011 million

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

Net profit 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

Consolidated financial results are not subject to audit by certified public accountants or auditing firms.
Explanation on appropriate use of financial results forecast, and other special notes
The forecasts in the Future Outlook (page 3) are based on information available at the present time, and containsome uncertainties. Actual results may differ from the above forecasts due to changes in business conditions andother factors.
The Company plans to hold a financial-result briefing online for institutional investors and analysts on
Thursday, February 15, 2024. Materials for this briefing to be used on the day will be posted on the Company
website as soon as possible after the event.

○Table of Contents of Attachments
1. Overview of Operating Results................................................................................................................................................ 2(1) Overview of Operating Results for the Period under Review ................................................................................................ 2(2) Overview of Financial Position for the Period under Review ................................................................................................ 2(3) Overview of Cash Flows for the Period under Review .......................................................................................................... 3(4) Future Outlook ....................................................................................................................................................................... 3(5) Basic Policy on Profit Distribution and Dividends for the Current and Next Periods ............................................................ 3
2. Basic Views on the Selection of Accounting Standards .......................................................................................................... 3
3. Consolidated Financial Statements and Major Notes............................................................................................................... 4(1) Consolidated Balance Sheets ................................................................................................................................................. 4(2) Consolidated Statements of Income and Comprehensive Income ......................................................................................... 6
Consolidated Statements of Income ....................................................................................................................................... 6
Consolidated Statements of Comprehensive Income ............................................................................................................. 7(3) Consolidated Statements of Changes in Equity ..................................................................................................................... 8(4) Consolidated Statements of Cash Flows .............................................................................................................................. 10(5) Notes to Consolidated Financial Statements ........................................................................................................................ 12(Notes on Going Concern) ................................................................................................................................................... 12(Notes on Substantial Changes in the Amount of Shareholders' Equity) ............................................................................. 12(Changes in Accounting Policies) ........................................................................................................................................ 12(Changes in Significant Subsidiaries During the Consolidated Fiscal Year under Review) ................................................ 12(Segment Information) ......................................................................................................................................................... 12(Per Share Information) ....................................................................................................................................................... 15(Significant Subsequent Events) .......................................................................................................................................... 16
4. Non-consolidated Statements of Income ............................................................................................................................... 17

－1－

1.

Overview of Operating Results(1) Overview of Operating Results for the Period under Review
During the fiscal year under review (From January 1, 2023 to December 31, 2023), the Japanese economy was on amoderate recovery trend due in part to the reclassification of COVID-19 to Class 5 infectious diseases. On the other
hand, there is a possibility that an increase in prices triggered by the emergence of geopolitical risks, together with adownturn in overseas economic activity, such as the impact of global monetary tightening and concerns about theoutlook for the Chinese economy, will depress the Japanese economy. It is also important to pay close attention todevelopments in the Middle East and changes in domestic monetary policy.
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
and the environment where growth is expected, and implemented initiatives in conjunction with sales policies such asteam assignment. As a result of the above measures, both the total number of staff in operation and the contract unit
price have increased. Driven by these various factors in the engineer assignment business, in the consolidated fiscal
year under review, the Company recorded net sales of 46,216 million yen (up 5.9% year on year), operating profit of
4,982 million yen (up 7.2% year on year), ordinary profit of 5,053 million yen (up 10.8% year on year), and net profit
attributable to owners of parent of 3,696 million yen (up 8.2% year on year).
To create new corporate value, the Company, celebrating its 55th anniversary, is strengthening its outsourcing
business, developing new business fields such as agriculture and nursing care, and expanding its manufacturingbusiness.
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 onengineer assignment.
In the outsourcing services business, 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 by strengthening technical education in cutting-edge technologies and the environment where growth isexpected, and implementing initiatives in conjunction with sales policies such as team assignment.
As a result, net sales for the fiscal year under review were 42,688 million yen (up 6.3% year on year), and operating
profit was 4,548 million yen (up 2.7% year on year).
2) Global BusinessIn the global business, the Company provides design, manufacturing, installation and maintenance services forplant facilities, machinery and equipment, and staffing services overseas.
In the global business, net sales for the consolidated fiscal year under review were 3,527 million yen (up 0.6%
year on year), and operating profit was 431 million yen (up 99.4% year on year), due to additional orders for largescale projects since 2022.

(2) Overview of Financial Position for the Period under Review
Total assets at the end of the consolidated fiscal year under review were 25,025 million yen, an increase of 751
million yen from the end of the previous consolidated fiscal year. This was mainly due to an increase in cash anddeposits. Total liabilities were 8,158 million yen, a decrease of 373 million yen from the end of the previous
consolidated fiscal year. This was mainly due to a decrease in income taxes payable. As a result, net assets increased
by 1,124 million yen from the end of the previous consolidated fiscal year to 16,866 million yen.
Accordingly, the capital adequacy ratio was 67.2%.

－2－

(3) Overview of Cash Flows for the Period under Review
Cash and cash equivalents at the end of the consolidated fiscal year under review (hereinafter referred to as "netcash") amounted to 10,737 million yen, an increase of 734 million yen from the end of the previous consolidated fiscal
year.
The status of cash flows for the consolidated fiscal year under review and their factors for change are as follows:
1) Cash flows from operating activities
Net cash provided by operating activities amounted to 3,213 million yen in the consolidated fiscal year underreview (down 12.3% year on year). This was mainly due to an increase in inventories.
2) Cash flows from investing activities
Net cash provided by investing activities amounted to 138 million yen in the consolidated fiscal year under review(previous consolidated fiscal year: net cash used in investing activities of 125 million yen). This was mainly due toan increase in proceeds from sales of investment securities.
3) Cash flows from financing activities
Net cash used in financing activities was 2,684 million yen in the consolidated fiscal year under review (down
6.8% year on year). This was mainly due to a decrease in repayment of short-term borrowings.

(4) Future Outlook
Although there are concerns about the impact of foreign exchange fluctuations and other factors caused by stagnant
economic trends in China and monetary policy changes at home and abroad, requests for assignment from major
manufacturing companies, the Group's main customers, remain firm, and we expect this trend to continue.
Please refer to the Summary Information for the financial results forecast (consolidated and non-consolidated) for
the next period.

(5) Basic Policy on Profit Distribution and Dividends for the Current and Next Periods
With regard to the distribution of profits, the Company positions the return of profits to shareholders as one of theimportant management issues and aims to share earnings in accordance with financial results. Retained earnings will
be utilized for investments in education, systems and others that contribute to the improvement of corporate value overthe medium to long term. Dividends to shareholders will be paid in cash on a consolidated basis with a dividend payout
ratio of 50% as an indicator. The interim dividend is expected to be 50% of the annual dividend. In addition, the basic
policy is to maintain an annual dividend of 10 yen (interim and year-end dividends of 5 yen each) per share, regardlessof financial results, with the aim of maintaining a stable dividend.
The annual dividend for the consolidated fiscal year under review will be 103 yen per share, and since we havealready paid an interim dividend of 52 yen (including a commemorative dividend of 10 yen for the 55th anniversary),
the Board of Directors has resolved that the year-end dividend will be 51 yen, and it will be submitted to the Annual
General Meeting of Shareholders scheduled to be held in March 2024.
With regard to the dividend for the next period, the Company plans to pay an annual dividend of 88 yen per share(Interim and year-end dividends of 44 yen each).

2.

Basic Views on the Selection of Accounting Standards
As many of the Group's stakeholders are domestic shareholders, creditors, and business partners, and there is little
need to raise funds from overseas, Japanese accounting standards are applied.

－3－

3.

Consolidated Financial Statements and Major Notes(1) Consolidated Balance Sheets(Thousands of yen)
As of December 31, 2022

As of December 31, 2023

10,696,566

11,430,737

6,622,872

6,547,477

Merchandise and finished goods
Work in process

1,074
238,003

1,074
484,449

Raw materials and supplies
Other

57,597535,665

92,967
706,446

18,151,780

19,263,151

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract
assetsTotal current assets
Non-current assets
Property, plant and equipment
Buildings and structures

3,301,101

3,366,419

Accumulated depreciation(1,737,179)(1,877,089)

Buildings and structures, net

1,563,922

1,489,329

Machinery, equipment and vehicles

213,831219,096

Accumulated depreciation(180,412)(187,886)

33,41831,2101,527,337
346,955

1,541,637
432,948(293,246)(339,306)

Machinery, equipment and vehicles, net
Land
Other
Accumulated depreciation
Other, net

53,70893,641

3,178,388

3,155,819

Goodwill
Other

243,122
141,115

159,111
124,947

Total intangible assets

384,237

284,059

Investments and other assets
Investment securities

1,049,802

1,023,942

32,218862,242

32,218
777,764

Total property, plant and equipment
Intangible assets

Shares of subsidiaries and associates
Deferred tax assets
Other
Total investments and other assets
Total non-current assets
Total assets－4－615,857

488,730

2,560,120

2,322,655

6,122,746

5,762,534

24,274,526

25,025,686

(Thousands of yen)
As of December 31, 2022

As of December 31, 2023

459,100
274,391

355,993
224,262

Accounts payable - other
Income taxes payable

1,978,431
897,393

1,941,659
760,350

Accrued consumption taxes
Provision for bonuses

929,610
1,704,119

788,459
1,745,647

28,49731,500Other

1,861,504

1,990,470

Total current liabilities

8,133,048

7,838,342

45,27621,014

1,470

1,470

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings

Provision for bonuses for directors (and otherofficers)

Non-current liabilities
Long-term borrowings
Provision for retirement benefits for directors (andother officers)
Deferred tax liabilities
Retirement benefit liability
Other
Total non-current liabilities

4,012

－

177,916
170,861

160,777
137,266

399,535

320,527

8,532,583

8,158,870

Share capital
Capital surplus

2,347,163
2,784,651

2,347,163
2,798,742

Retained earnings
Treasury shares

11,973,136(1,987,433)

13,688,994(2,739,199)

15,117,517

16,095,701

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

385,442
184,722480,241
246,304

Total accumulated other comprehensive income

570,165

726,545

54,25944,56815,741,943

16,866,815

24,274,526

25,025,686

Total liabilities
Net assets
Shareholders' equity

Total shareholders' equity
Accumulated other comprehensive income

Non-controlling interests
Total net assets
Total liabilities and net assets－5－(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Remuneration for directors (and other officers)
Employee salaries
Provision for accrued bonuses
Retirement benefit expenses
Depreciation
Provision for accrued bonuses for directors (and other officers)
Provision of allowance for doubtful accounts
Other
Total 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
Donations
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Donation income
Total extraordinary income
Extraordinary losses
Impairment losses
Loss on retirement of non-current assets
Total extraordinary losses
Net profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net profit
Net profit/(loss) attributable to non-controlling interests
Profit attributable to owners of parent－6－

Previous consolidated
fiscal year
(From January 1, 2022
to December 31, 2022)
43,647,698
33,159,104
10,488,594(Thousands of yen)
Consolidated fiscal year
under review(From January 1, 2023
to December 31, 2023)
46,216,036
35,263,472
10,952,564

173,765
1,704,393
239,80332,352285,719
28,497(3,817)
3,378,702
5,839,416
4,649,178

175,054
1,774,611
184,574
33,237283,759
32,020－6,074
30,107139,293－

9,697
27,02821,31523,573
108,562
190,177

90,838266,3132,613
309,703
3,447
38,730354,493
4,560,997
253－
300,000
300,253
128,3308
128,338
4,732,912
1,542,833(214,369)
1,328,463
3,404,448(12,483)
3,416,932

3,486,837
5,970,095
4,982,468

908
81,671－36,753
119,332
5,053,312
364
257,611－257,975
51,573
1,786
53,3605,257,928
1,484,622
84,561
1,569,183
3,688,744(7,335)
3,696,080

Consolidated Statements of Comprehensive Income
Previous consolidated
fiscal year
(From January 1, 2022
to December 31, 2022)(Thousands of yen)
Consolidated fiscal year
under review(From January 1, 2023
to December 31, 2023)

Net profit

3,404,448

3,688,744

Other comprehensive income
Valuation difference on available-for-sale securities(53,969)

94,798Foreign currency translation adjustment

48,38059,226

Total other comprehensive income(5,588)154,025

Comprehensive income

3,398,860

3,842,769

Comprehensive income attributable to:Comprehensive income attributable to owners of parent

3,414,398

3,852,460(15,538)(9,690)Comprehensive income attributable to non-controlling interests－7－(3) Consolidated Statements of Changes in Equity
Previous consolidated fiscal year (From January 1, 2022 to December 31, 2022)(Thousands of yen)
Shareholders' equity
Share capital
Beginning balance

Capital surplus

2,347,163

Retained earnings

3,124,180

13,489,035

Treasury shares(4,931,131)

Total shareholders'equity14,029,247

Changes during the period
Dividend of surplus
Profit attributable toowners of parent
Acquisition of treasury
shares
Disposal of treasury
sharesRetirement of treasury
sharesTransfer from retained
earnings to capital surplus
Net changes in items
other than shareholders'equityTotal changes during theperiodEnding balance(1,565,052)(1,565,052)

3,416,932

3,416,932(843,970)(843,970)

27,691

52,66880,360(3,735,000)

3,735,000－－

3,367,779(3,367,779)－(339,529)(1,515,899)

2,943,698

1,088,269

2,347,163

2,784,651

11,973,136(1,987,433)

15,117,517

Accumulated other comprehensive income
Valuation difference
on available-for-salesecurities
Beginning balance

439,412

Foreign currencytranslation
adjustment
133,287

Total accumulated
other comprehensive
income572,700

Non-controllinginterests
33,218

Total net assets

14,635,166

Changes during the period(1,565,052)

Dividend of surplus
Profit attributable toowners of parent
Acquisition of treasury
shares
Disposal of treasury
sharesRetirement of treasury
sharesTransfer from retained
earnings to capital surplus
Net changes in items otherthan shareholders' equity
Total changes during theperiodEnding balance

3,416,932(843,970)
80,360－－(53,969)

51,435(2,534)

21,041

18,506(53,969)

51,435(2,534)

21,041

1,106,776

385,442

184,722570,165

54,25915,741,943－8－

Consolidated fiscal year under review (From January 1, 2023 to December 31, 2023)(Thousands of yen)
Shareholders' equity
Share capital
Beginning balance

Capital surplus

2,347,163

Retained earnings

2,784,651

11,973,136

Treasury shares(1,987,433)

Total shareholders'equity15,117,517

Changes during the period
Dividend of surplus
Profit attributable toowners of parent
Acquisition of treasury
shares
Disposal of treasury
sharesEnding balance(1,980,273)

3,696,080

3,696,080

14,091Other
Net changes in items otherthan shareholders' equity
Total changes during theperiod(1,980,273)(766,435)(766,435)

14,66928,76051

51－

14,091

1,715,857(751,765)

978,183

2,347,163

2,798,742

13,688,994(2,739,199)

16,095,701

Accumulated other comprehensive income
Valuation difference
on available-for-salesecurities
Beginning balance

385,442

Foreign currencytranslation
adjustment
184,722

Total accumulated
other comprehensive
income570,165

Non-controllinginterests
54,259Total net assets

15,741,943

Changes during the period(1,980,273)

Dividend of surplus
Profit attributable toowners of parent
Acquisition of treasury
shares
Disposal of treasury
shares3,696,080(766,435)
28,760Other
Net changes in items otherthan shareholders' equity
Total changes during theperiodEnding balance

51
94,79861,581

156,379(9,690)146,689

94,79861,581

156,379(9,690)1,124,872

480,241

246,304

726,545

44,56816,866,815－9－

(4) Consolidated Statements of Cash Flows
Previous consolidated
fiscal year
(From January 1, 2022
to December 31, 2022)(Thousands of yen)
Consolidated fiscal year
under review(From January 1, 2023
to December 31, 2023)

4,732,912
200,483

5,257,928
257,338

Impairment losses
Amortization of goodwill

128,330
101,220

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses for directors(3,839)51,57384,010－Cash flows from operating activities
Net profit before income taxes
Depreciation(and other officers)
Increase (decrease) in provision for bonuses(3,762)

3,002

278,894

29,280

Increase (decrease) in retirement benefit liability
Interest and dividend income(14,415)(36,181)(17,138)(36,725)

Subsidy income
Interest expenses(139,293)
2,613(21,315)
908

Donations
Donation income

309,703(300,000)

81,671－

Loss (gain) on sale of non-current assets
Loss (gain) on sale of investment securities

(253)
－

(364)
(257,611)

Loss on retirement of non-current assets
Other non-operating income

8(90,838)

1,786(108,562)

38,730(1,132,369)

36,753
141,588

Decrease (increase) in inventories
Increase (decrease) in trade payables

79,898
121,647(281,815)(120,200)

Increase (decrease) in other payables
Increase (decrease) in accrued consumption taxes

254,827
169,178(35,015)(139,943)

Decrease (increase) in consumption taxes refund
Other(11,943)
266,154

9,592
51,358Subtotal

Other non-operating expenses
Decrease (increase) in trade receivables and contract assets

4,951,704

4,988,100

Proceeds from interest and dividend income

36,18136,507

Interest paid
Proceeds from subsidy income(2,528)132,469

Proceeds from contribution
Contribution paid

300,000(309,703)(907)
21,315－(81,671)

Income taxes paid

(1,444,575)(1,749,696)

Cash flows from operating activities

3,663,548

3,213,647－10－

Previous consolidated
fiscal year
(From January 1, 2022
to December 31, 2022)(Thousands of yen)
Consolidated fiscal year
under review(From January 1, 2023
to December 31, 2023)

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment(57,134)
292－

Proceeds from sales of investment securities
Proceeds from collection of loans(175,604)
364

45,000361,530－

Purchase of intangible assets
Purchase of non-current assets for rent

(45,543)(852)(48,722)－

Payments from changes in ownership interests in
subsidiaries that result in change in scope of consolidation(65,776)－

Other(1,918)1,055(125,932)

138,622

Cash flows from financing activities
Net increase (decrease) in short-term borrowings

Cash flows from investing activities(519,339)(50,129)

Repayment of long-term borrowings payable
Purchases of treasury shares(54,891)(844,595)(24,262)(767,014)

Dividends paid to non-controlling interests
Dividends paid

(10,833)(1,451,682)(7,688)(1,835,481)

300

98

(2,881,041)(2,684,477)

54,044

66,373

Proceeds from sales of treasury shares
Cash flows from financing activities
Net effect of exchange rate changes on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents

710,618

734,167

Cash and cash equivalents at beginning of period

9,293,055

10,003,673

Cash and cash equivalents at end of period

10,003,673

10,737,841－11－

(5) Notes to Consolidated Financial Statements(Notes on Going Concern)
Not applicable.
(Notes on Substantial Changes in the Amount of Shareholders' Equity)
The Company acquired 281,100 shares of common stock on May 15, 2023 through the Tokyo Stock Exchange's OffAuction Own Share Repurchase Trading System (ToSTNeT-3) pursuant to a resolution of the Board of Directors
meeting held on May 11, 2023. As a result, treasury shares increased by 751,765 thousand yen in the consolidated fiscal
year under review, including an increase due to the purchase of fractional shares.
(Changes in Accounting Policies)(Application of Implementation Guidance on Accounting Standard for Fair Value Measurement)
The Company has applied the "Implementation Guidance on Accounting Standard for Fair Value Measurement"(ASBJ Guidance No. 31, June 17, 2021) from the beginning of the consolidated fiscal year under review, and has
applied the new accounting policies specified in the Implementation Guidance on Accounting Standard for Fair Value
Measurement in accordance with the transitional treatment specified in Paragraph 27-2 of the Implementation Guidanceon Accounting Standard for Fair Value Measurement into the future. This change in accounting policies has no impact
on the consolidated financial statements.
(Changes in Significant Subsidiaries During the Consolidated Fiscal Year under Review)
During the second quarter of the consolidated fiscal year, the consignment acceptance division of PANA R&D CO.,LTD., a consolidated subsidiary of the Company, was merged in an absorption-type split into Digital Spice Corporation,
another consolidated subsidiary of the Company, as the successor company. In addition, other than the consignment
acceptance division of PANA R&D CO., LTD., an absorption-type merger was conducted with the Company as thesurviving company. As a result, PANA R&D CO., LTD. is excluded from the scope of consolidation.
(Segment Information)
1. Overview of Reportable Segments
The Company's reportable segments are the Group’s operating units whose separate financial information isavailable, and are subject to periodic review by the Board of Directors in order to determine the allocation ofmanagement resources and to evaluate performance.
The Company is focusing on the outsourcing services business, the Group's core business, and considering its
content and market similarity, we have two reporting segments, the outsourcing services business and the global
business.
In the outsourcing service business, the Group provides technical services through assignment and contracting,mainly through its core engineer assignment business.
In the global business, the Company provides installation and maintenance services for production facilities andstaffing services to Japanese companies overseas.
2.

Method of Calculating the Amount of Sales, Profit or Loss, Assets, Liabilities and Other Items for Each
Reportable Segment
Accounting for the reported business segments is the same as the one described in "Material Matters That Serveas the Basis for Preparation of Consolidated Financial Statements."
Profit of the reportable segments is based on operating profit.
Intersegment revenues and transfers are based on prevailing market prices.

－12－

3.

Information on the Amount of Sales, Profit or Loss, Assets, Liabilities and Other Items for Each Reportable
Segment
Previous consolidated fiscal year (From January 1, 2022 to December 31, 2022)(Thousands of yen)
Outsourcing Service
Business

Global BusinessTotal

Net sales
Sales to external customers

40,141,746

3,505,952

43,647,698－

46,182

46,18240,141,746

3,552,134

43,693,881

Segment profit

4,430,158

216,386

4,646,544

Segment assets

22,521,196

2,026,909

24,548,105

Depreciation

195,599

4,883

200,483

Amortization of goodwill

101,220－

101,220

Increase in property, plant and equipment andintangible assets

98,0803,577

101,657

Intersegment sales and transfers
Total

Other items

Consolidated fiscal year under review (From January 1, 2023 to December 31, 2023)(Thousands of yen)
Outsourcing Service
Business

Global BusinessTotal

Net sales
Sales to external customers

42,688,153

3,527,883

46,216,036－

38,81538,81542,688,153

3,566,698

46,254,852

Segment profit

4,548,440

431,5074,979,948

Segment assets

23,428,038

2,135,665

25,563,703

Depreciation

253,828

3,509

257,338

Amortization of goodwill

84,010－84,010

Increase in property, plant and equipment andintangible assets

214,904

2,737

217,642Intersegment sales and transfers
Total

Other items

－13－

4.

Differences between the Total Amount of Reportable Segments and the Amounts Reported in Consolidated
Financial Statements and the Details of the Differences (Matters Concerning Reconciliation of Differences)(Thousands of yen)
Net sales

Previous consolidated fiscal year

Reportable segments total
Intersegment transaction elimination
Net sales in Consolidated Financial Statements

Consolidated fiscal year underreview

43,693,881

46,254,852(46,182)(38,815)

43,647,698

46,216,036(Thousands of yen)
ProfitPrevious consolidated fiscal year

Reportable segments total
Intersegment transaction elimination
Operating profit in Consolidated Financial
Statements

Consolidated fiscal year underreview

4,646,544

4,979,948

2,633

2,520

4,649,178

4,982,468(Thousands of yen)
AssetsPrevious consolidated fiscal year

Consolidated fiscal year underreview

Reportable segments total

24,548,105

25,563,703

Intersegment transaction elimination(273,579)(538,017)

Total assets in Consolidated Financial Statements

24,274,526

25,025,686(Thousands of yen)
Reportable segments
total
Other items

Amount reported in
Consolidated Financial
Statements

Reconciliations

Previous Consolidated Previous Consolidated Previous Consolidated
consolidated fiscal year consolidated fiscal year consolidated fiscal year
fiscal year under review fiscal year under review fiscal year under review

Depreciation

200,483

257,338－－

200,483

257,338

Amortization of goodwill

101,22084,010－－101,22084,010

Increase in property, plant and equipment andintangible assets

101,657

217,642－－

101,657

217,642－14－

(Per Share Information)
Previous consolidated fiscal year
(From January 1, 2022 to
December 31, 2022)

Consolidated fiscal year under review(From January 1, 2023 to
December 31, 2023)

Net assets per share

778.68 yen

846.62 yen

Net profit per share

169.47 yen

185.16 yen(Note)
1. Diluted earnings per share is not presented because there are no diluted shares.
2. The basis for calculating the amount of net assets per share is as follows:
Previous consolidated fiscal year
(December 31, 2022)

Consolidated fiscal year under review(December 31, 2023)

Total amount of net assets (Thousands of yen)

15,741,943

16,866,815

Amount to be deducted from the total amountof net assets(Thousands of yen)

54,25944,568(Of those, non-controlling interests)(54,259)(44,568)

15,687,683

16,822,246

20,146,610

19,869,936

Net assets of common shares at end of period(Thousands of yen)
Number of common shares at end of period(shares)

3. The basis for calculating net profit per share is as follows:
Previous consolidated fiscal year
(From January 1, 2022 to
December 31, 2022)

Consolidated fiscal year under review(From January 1, 2023 to
December 31, 2023)

Net profit per share
Profit attributable to owners of parent(Thousands of yen)Amount not attributable to commonshareholders (Thousands of yen)
Profit attributable to owners of parent forcommon shares (Thousands of yen)
Average number of shares outstanding
during the period (shares)－15－

3,416,932

3,696,080－－

3,416,932

3,696,080

20,162,291

19,962,073

(Significant Subsequent Events)(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 sharesof Tanpopo 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
Description of the business(2)

Tanpopo Shiki no Mori
Elderly housing with home-care services, in-home care support, and homevisit care

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 technicalservices 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 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 homevisit care.
Going forward, by strengthening synergies with Alps Care Heart Corporation, and by gathering know-how,the Group 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
(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 will acquire shares in exchange for cash.
2.

Breakdown of Acquisition Cost and Consideration of the Acquired Company by TypeConsideration for
the acquisition

Cash

Acquisition cost3.

(Thousands of yen)

246,962(Thousands of yen)

Details and Amounts of Major Acquisition-related Expenses

Advisory fees4.

246,962

27,397 (Thousands of yen)Amount of Goodwill, Cause, Method and Period of Amortization

It is not yet finalized at this time.
5.

Amounts of Assets to Be Received and Liabilities to Be Assumed on the Date of Business Combination and Major
Components

It is not yet finalized at this time.

－16－

4.

Non-consolidated Statements of Income

Statements of Income
Previous fiscal year
(From January 1, 2022 to
December 31, 2022)(Thousands of yen)
Fiscal year under review(From January 1, 2023 to
December 31, 2023)

Net sales

33,435,192

36,274,311

Cost of sales

24,784,535

27,097,022

Gross profit

8,650,657

9,177,288

Selling, general and administrative expenses

4,378,972

4,544,753

Operating profit

4,271,684

4,632,535

1,478
336,076－

2,850
337,394

Non-operating income
Interest income
Dividend income
Foreign exchange gains
Subsidy income

112,326

21,856
20,138Other

89,948122,306

Total non-operating income

539,829504,546845

462

309,703
1,562

127,364－－

144,328

37,511

37,343Non-operating expenses
Interest expenses
Donations
Foreign exchange losses
Provision of allowance for doubtful accounts for
subsidiaries and associates
Other
Total non-operating expenses
Ordinary profit

349,621309,499

4,461,892

4,827,582

101
－

364
257,611－Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Donation income
Gain on extinguishment of tie-in shares

300,000－

Total extraordinary income

300,101

288,116

2,782－

Loss on retirement of non-current assets
Loss on valuation of shares of subsidiaries and affiliates

8
230,790

1,786
225,943

Total extraordinary losses

233,581

227,730

Net profit before income taxes

4,528,412

4,887,968

Income taxes - current
Income taxes - deferred

1,305,804(161,443)

1,310,735
53,611

Total income taxes

1,144,361

1,364,347

Net profit

3,384,051

3,523,621

Extraordinary losses
Impairment losses－17－

30,140