Altech : Summary of Consolidated Financial Results for the Six Months Ended June 30, 2021 (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, 2021
		(Based on Japanese GAAP)
				August 10, 2021
Company name:	Altech Corporation
Stock exchange listing:	Tokyo
Stock code:	4641	URL https://www.alpsgiken.co.jp/
Representative:	President		Atsushi Imamura
Inquiries:	Senior Managing Director General Manager	Nobuyuki Watanabe	TEL [phone]
Scheduled date to file Quarterly Securities Report:	August 11, 2021
Scheduled date to commence dividend payments:	September 17, 2021
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, 2021 (from January 1, 2021 to June 30, 2021)

(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, 2021	18,770		7.4		1,732	(3.0)		2,314			8.2		1,552		8.8
Six months ended June 30, 2020	17,483		5.4		1,785	8.6		2,139		26.4		1,426		18.3
	Earnings per share		Diluted earnings per share
			Yen					Yen
Six months ended June 30, 2021			75.75					-
Six months ended June 30, 2020			69.48					-
(2) Consolidated financial position
	Total assets				Net assets	Equity ratio
	Millions of yen			Millions of yen					%
As of June 30, 2021		21,786					13,661				62.6
As of December 31, 2020		20,996					12,771				60.7
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, 2020		-			35.00			-				40.00			75.00
Year ending December 31, 2021		-			37.00
Year ending December 31, 2021 (Forecast)									-				38.00			75.00

3. Forecast of consolidated financial results for the year ending December 31, 2021 (from January 1, 2021 to December 31, 2021)

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	40,000	11.9	4,000		9.9	4,400		(4.3)	3,060		0.1	149.25

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4. Notes

1. Changes in significant subsidiaries during the six months ended June 30, 2021 (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, 2021	24,746,675	shares	As of December 31, 2020	24,746,675	shares
Number of treasury shares at the end of the period
	As of June 30, 2021	4,251,641	shares	As of December 31, 2020	4,261,696	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended June 30, 2021	20,489,711	shares	Six months ended June 30, 2020	20,538,478	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of December 31, 2020	As of June 30, 2021
Assets
Current assets
Cash and deposits	8,619,755	8,947,010
Notes and accounts receivable - trade	5,227,621	5,256,564
Work in process	267,586	343,721
Raw materials and supplies	50,781	50,698
Other	495,567	730,962
Allowance for doubtful accounts	(3,848)	(3,796)
Total current assets	14,657,463	15,325,162
Non-current assets
Property, plant and equipment
Buildings and structures	3,284,234	3,291,433
Accumulated depreciation	(1,538,931)	(1,589,235)
Buildings and structures, net	1,745,303	1,702,198
Land	1,529,761	1,529,761
Construction in progress	-	1,025
Other	510,708	533,332
Accumulated depreciation	(425,533)	(436,389)
Other, net	85,174	96,943
Total property, plant and equipment	3,360,239	3,329,927
Intangible assets
Goodwill	411,143	369,138
Other	146,838	165,424
Total intangible assets	557,982	534,562
Investments and other assets
Investment securities	975,273	1,037,286
Shares of subsidiaries and associates	129,718	129,718
Deferred tax assets	669,693	819,635
Other	691,127	654,867
Accumulated depreciation	(44,528)	(44,756)
Other,net	646,599	610,111
Total investments and other assets	2,421,284	2,596,752
Total non-current assets	6,339,506	6,461,242
Total assets		20,996,970	21,786,404

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			(Thousands of yen)
		As of December 31, 2020	As of June 30, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade	182,107	123,012
Short-term borrowings	1,058,716	1,058,722
Accounts payable - other	1,630,863	1,371,145
Income taxes payable	978,830	955,482
Provision for bonuses	1,326,338	1,859,507
Provision for bonuses for directors (and other officers)	26,075	16,130
Other	2,565,216	2,248,142
Total current liabilities	7,768,147	7,632,141
Non-current liabilities
Deferred tax liabilities	2,137	2,303
Retirement benefit liability	198,160	193,792
Other	257,365	296,275
Total non-current liabilities	457,663	492,370
Total liabilities	8,225,811	8,124,512
Net assets
Shareholders' equity
Share capital	2,347,163	2,347,163
Capital surplus	3,086,165	3,098,774
Retained earnings	11,971,018	12,703,688
Treasury shares	(4,981,321)	(4,966,334)
Total shareholders' equity	12,423,026	13,183,291
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	300,176	362,783
Foreign currency translation adjustment	22,840	88,177
Total accumulated other comprehensive income	323,017	450,961
Non-controlling interests	25,115	27,639
Total net assets	12,771,158	13,661,892
Total liabilities and net assets		20,996,970	21,786,404

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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, 2020	June 30, 2021
Net sales	17,483,725	18,770,152
Cost of sales	13,274,548	14,555,419
Gross profit	4,209,176	4,214,733
Selling, general and administrative expenses	2,423,374	2,482,416
Operating profit	1,785,802	1,732,317
Non-operating income
Interest income	2,164	2,692
Dividend income	14,265	15,559
Subsidy income	303,057	536,293
Rental income	2,103	2,655
Compensation income	43,503	4,869
Other	25,033	43,137
Total non-operating income	390,129	605,208
Non-operating expenses
Interest expenses	923	2,565
Foreign exchange losses	5,519	6,340
Loss on extinguishment of Share-based remuneration	6,625	6,768
expenses
Other	22,974	7,209
Total non-operating expenses	36,042	22,883
Ordinary profit	2,139,888	2,314,641
Extraordinary income
Gain on sales of non-current assets	183	16
donation income	100,000	-
Total extraordinary income	100,183	16
Extraordinary losses
Loss on retirement of non-current assets	0	210
Loss on valuation of investment securities	79,214	-
Total extraordinary losses	79,214	210
Profit before income taxes	2,160,857	2,314,447
Income taxes - current	864,981	923,186
Income taxes - deferred	(131,839)	(161,714)
Total income taxes	733,141	761,471
Profit	1,427,715	1,552,976
Profit attributable to non-controlling interests	732	906
Profit attributable to owners of parent		1,426,983	1,552,069

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