Altech : Summary of Consolidated Financial Results for the Six Months Ended June 30, 2020 (Based on Japanese GAAP)

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

		Summary of Consolidated Financial Results
		for the Six Months Ended June 30, 2020
		(Based on Japanese GAAP)
				August 6, 2020
Company name:	Altech Corporation
Stock exchange listing:	Tokyo
Stock code:	4641	URL https://www.alpsgiken.co.jp/
Representative:	President		Atsushi Imamura
Inquiries:	Director General Manager	Akira Kouno	TEL [phone]
Scheduled date to file Quarterly Securities Report:	August 7, 2020
Scheduled date to commence dividend payments:	September 18, 2020
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	No

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended June 30, 2020 (from January 1, 2020 to June 30, 2020)

(1) Consolidated operating results (cumulative)								Percentages indicate year-on-year changes
	Net sales				Operating profit	Ordinary profit		Profit attributable to
						owners of parent
	Millions of yen		%	Millions of yen	%	Millions of yen			%	Millions of yen		%
Six months ended June 30, 2020	17,483		5.4		1,785	8.6		2,139		26.4		1,426		18.3
Six months ended June 30, 2019	16,589		5.5		1,644	0.4		1,692			1.9		1,206		(3.2)
	Earnings per share		Diluted earnings per share
			Yen					Yen
Six months ended June 30, 2020			69.48					-
Six months ended June 30, 2019			57.66					-
(2) Consolidated financial position
	Total assets				Net assets	Equity ratio
	Millions of yen			Millions of yen					%
As of June 30, 2020		18,833					11,736				62.2
As of December 31, 2019		19,471					12,165				62.4
2. Cash dividends
						Annual dividends per share
	1st quarter-end	2nd quarter-end		3rd quarter-end	Fiscal year-end	Total
	Yen				Yen			Yen				Yen			Yen
Year ended December 31, 2019		-			35.00			-				38.00			-
Year ending December 31, 2020		-			35.00
Year ending December 31, 2020 (Forecast)									-				35.00			70.00

3. Forecast of consolidated financial results for the year ending December 31, 2020 (from January 1, 2020 to December 31, 2020)

Percentages indicate year-on-year changes

	Net sales		Operating profit		Ordinary profit		Profit attributable to	Earnings per share
				owners of parent
	Millions of yen	%	Millions of yen		%	Millions of yen		%	Millions of yen		%	Yen
Full year	38,320	5.4	4,270		6.4	4,270		4.2	2,910		0.1	139.02

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4. Notes

1. Changes in significant subsidiaries during the six months ended June 30, 2020 (changes in specified subsidiaries resulting in the change in scope of consolidation):
2. Application of special accounting methods for preparing quarterly consolidated financial statements:

No

No

(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements

Changes in accounting policies due to revisions to accounting standards and other regulations:	No
Changes in accounting policies due to other reasons:	No
Changes in accounting estimates:	No
Restatement of prior period financial statements:	No

(4) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

	As of June 30, 2020	24,746,675	shares	As of December 31, 2019	24,746,675	shares
Number of treasury shares at the end of the period
	As of June 30, 2020	4,287,637	shares	As of December 31, 2019	3,797,910	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended June 30, 2020	20,538,478	shares	Six months ended June 30, 2019	20,921,946	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of December 31, 2019	As of June 30, 2020
Assets
Current assets
Cash and deposits	7,442,059	6,806,630
Notes and accounts receivable - trade	5,382,018	5,042,430
Work in process	155,568	135,820
Raw materials and supplies	961	961
Other	426,694	739,491
Allowance for doubtful accounts	(2,115)	(2,123)
Total current assets	13,405,188	12,723,210
Non-current assets
Property, plant and equipment
Buildings and structures	3,013,586	3,016,902
Accumulated depreciation	(1,286,261)	(1,333,295)
Buildings and structures, net	1,727,325	1,683,607
Land	1,449,757	1,451,803
Other	397,364	403,995
Accumulated depreciation	(317,000)	(329,648)
Other, net	80,364	74,347
Total property, plant and equipment	3,257,447	3,209,758
Intangible assets
Goodwill	277,321	248,129
Other	160,120	154,626
Total intangible assets	437,442	402,756
Investments and other assets
Investment securities	1,020,504	929,015
Shares of subsidiaries and associates	-	97,500
Deferred tax assets	643,338	774,694
Other	928,485	919,312
Accumulated depreciation	(220,968)	(222,873)
Other,net	707,517	696,438
Total investments and other assets	2,371,360	2,497,648
Total non-current assets	6,066,250	6,110,163
Total assets		19,471,438	18,833,374

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			(Thousands of yen)
		As of December 31, 2019	As of June 30, 2020
Liabilities
Current liabilities
Notes and accounts payable - trade	112,052	63,344
Short-term borrowings	700,000	700,000
Accounts payable - other	1,559,567	1,323,912
Income taxes payable	864,974	905,294
Provision for bonuses	1,333,112	1,685,120
Provision for bonuses for directors (and other officers)	32,085	12,932
Other	2,386,442	2,087,028
Total current liabilities	6,988,234	6,777,633
Non-current liabilities
Retirement benefit liability	206,035	199,559
Other	111,430	119,395
Total non-current liabilities	317,466	318,954
Total liabilities	7,305,700	7,096,588
Net assets
Shareholders' equity
Share capital	2,347,163	2,347,163
Capital surplus	3,060,564	3,066,215
Retained earnings	10,425,509	11,056,439
Treasury shares	(3,963,015)	(5,013,148)
Total shareholders' equity	11,870,221	11,456,670
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	257,173	246,032
Foreign currency translation adjustment	15,021	10,128
Total accumulated other comprehensive income	272,195	256,160
Non-controlling interests	23,321	23,955
Total net assets	12,165,737	11,736,785
Total liabilities and net assets		19,471,438	18,833,374

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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

			(Thousands of yen)
		Six months ended	Six months ended
		June 30, 2019	June 30, 2020
Net sales	16,589,340	17,483,725
Cost of sales	12,291,991	13,274,548
Gross profit	4,297,349	4,209,176
Selling, general and administrative expenses	2,653,225	2,423,374
Operating profit	1,644,123	1,785,802
Non-operating income
Interest income	1,514	2,164
Dividend income	16,459	14,265
Subsidy income	13,062	303,057
Rental income	18,313	2,103
Compensation income	-	43,503
Foreign exchange gains	119	-
Other	22,569	25,033
Total non-operating income	72,037	390,129
Non-operating expenses
Interest expenses	1,960	923
Rental cost	7,151	17,393
Foreign exchange losses	-	5,519
Other	14,629	12,205
Total non-operating expenses	23,742	36,042
Ordinary profit	1,692,418	2,139,888
Extraordinary income
Gain on sales of non-current assets	84	183
donation income	100,000	100,000
Total extraordinary income	100,084	100,183
Extraordinary losses
Loss on sales of non-current assets	425	-
Loss on retirement of non-current assets	2	0
Loss on valuation of investment securities	1,171	79,214
Total extraordinary losses	1,599	79,214
Profit before income taxes	1,790,903	2,160,857
Income taxes - current	604,268	864,981
Income taxes - deferred	(19,949)	(131,839)
Total income taxes	584,319	733,141
Profit	1,206,584	1,427,715
Profit attributable to non-controlling interests	181	732
Profit attributable to owners of parent		1,206,402	1,426,983

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Consolidated statements of comprehensive income (cumulative)

		(Thousands of yen)
	Six months ended	Six months ended
	June 30, 2019	June 30, 2020
Profit	1,206,584	1,427,715
Other comprehensive income
Valuation difference on available-for-sale securities	(40,823)	(11,141)
Foreign currency translation adjustment	(19,508)	(4,992)
Total other comprehensive income	(60,331)	(16,133)
Comprehensive income	1,146,252	1,411,582
Comprehensive income attributable to
Comprehensive income attributable to owners of parent	1,146,777	1,410,948
Comprehensive income attributable to non-controlling	(525)	633
interests

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