Altech Corporation · TSE:4641
Altech — H1 2006 Earnings Presentation
21 slides from Altech's earnings presentation, Aug 11, 2006
Slide 1: Interim Financial Results Briefing for the 26th Business Year
As of August 11, 2006 People Are Our Future－Next Technology Frontier® Altech Corporation The First Section of the Tokyo Stock Exchange (Securities Identification Code: 4641) Interim Financial Results Briefing for the 26th Business Year Kunihiko Ikematsu President, Representative Director
Slide 2: Safe Harbor Statement
Safe Harbor Statement Forecasts of business results and other future outlooks contained in this presentation are based on the information available as of the date the presentation was announced. As such, actual business performance may differ from the outlook indicated due to various factors. Altech
Slide 3: Agenda
ＡＧＥＮＤＡ 1. FY2006 Interim Financial Results 2. FY2006 Forecast of Business Results Altech Corporation
Slide 4: FY2006 Interim Financial Results
FY2006 Interim Financial Results Altech Corporation １
Slide 5: Performance Highlights <FY2006 Interim> Consolidated
Performance Highlights <FY2006 Interim> 【Consolidated】 Unit: Million Yen Percentage Interim FY2005 Interim FY2006 Change Sales ９,９３４ １０，４４１ ５．１％ Operating Income ６２２ ４８２ －２２．５％ Ordinary Income ５７０ ４７０ －１７．５％ Net Income ３１３ ７４ －７６．３％ Net Income per Share (Yen) ３２．０５ ７．５ －７６．６％ Altech Corporation ２
Slide 6: Changes in Performance over the Five Years
Changes in Performance over the Five Years ＜Interim- Consolidated＞ Unit: Million Yen, % 9, 934 1, 0441 9, 506 7. 7 7, 974 734 6, 841 5. 7 570 4. 5 4. 0 470 Sales 375 315 313 Ordinary Income 1. 7 Net Income 118 74 61 Sales to Ordinary 11 Income Ratio 2002 2003 2004 2005 2006 ●FY2004 Interim: Growth i
Slide 7: Balance Sheet <Consolidated>
Balance Sheet ＜Consolidated＞ Unit: Million Yen Interim YoY Category Causes of Change Y/Y 2006 Change Decrease due to payment of accounts payable as Current Assets ４,８５３ －１３１ of the end of 1H/FY2005 Asset-impairment loss of 193 million yen, 314 Tangible Fixed Assets ３,６４０ ４６ million reverted from Inv
Slide 8: P&L Statement <Consolidated>
P&L Statement ＜Consolidated＞ Unit: Million Yen Interim YoY Percentage Change Causes of Change 2006 change Sales 10,441 507 5.1％ Over 10% increase in income from engineer outsourcing business Gross Profit on 2,384 －18 －0.8％ The GP ratio decreased due to the deficits of software Sales subsidiaries in
Slide 9: Sales by Segment <Consolidated>
Sales by Segment ＜Consolidated＞ Unit: Million Yen 1H/2006 10,081 360 1H/2005 9,302 632 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 11,000 Outsourcing Service Business Other Businesses Interim FY2005 Interim FY2006 Sales Sales Sales Year-on-Year (%) Outsourcing Service Business ９，３０２
Slide 10: Performance by Group <FY2006 Interim>
Performance by Group ＜FY2006 Interim＞ Unit: Million Yen 【Consolidated Subsidiaries】 Interim FY2005 Interim FY2006 Sales Ordinary Income Sales Ordinary Income Altech Corporation ８,２８２ ５０７ ８,８８１ ５６０ Alps Business Service Co., Ltd. ８４３ ４０ １,１９３ ５１ Science System※１ ２５５ ７ － － Alnes Information Systems Co
Slide 11: Performance Highlights <FY2006 Interim> Non-Consolidated
Performance Highlights ＜FY2006 Interim＞ 【Non-Consolidated】 Unit: Million Yen Interim FY2005 Interim FY2006 % Change Sales ８,２８２ ８,８８１ ７.２％ Operating Income ４６８ ５０８ ８.７％ Ordinary Income ５０７ ５６０ １０.３％ Net Income ２９７ ２０３ －３１.５％ Sales Parameters of Personnel Outsourcing Interim FY2005 Interim FY2006 Var
Slide 12: Changes in Engineer Utilization Ratio, Operating hours and Selling price
Changes in Engineer Utilization Ratio, Operating hours and Selling price <Non-Consolidated> ＜Engineer Utilization Ratio/ Operating hours＞ ＜Changes in Selling price＞ （Yen） （H/Month） （％） 3550 195 98 FY2006 2006年度 97.8 3500 97.1 96 3450 前年度 FY2005 190 94.7 94.0 94 3400 93.2 185 185.8 92 3350 3,383 182.
Slide 13: Changes in Number of Engineers
Changes in Number of Engineers <Non-Consolidated> 2,389 2,235 1,997 2,136 1,815 12/02 12/03 12/04 12/05 6/06 10 Altech Corporation
Slide 14: Sales by Industry Based on Top 100 Customers
Sales by Industry Based on Top 100 Customers ＜Non-Consolidated＞ Unit: Million Yen 30.3% 26.4% 12.4% 7.1% 5.3% 4.0% 14.5% 1H/2006 2,077 1,810 850 486 363 273 987 30.5% 23.1% 13.5% 5.0% 7.0% 3.8% 17.1% 1H/2005 1,949 1,475 860 317 453 242 1,092 30.2% 20.6% 11.51% 4.2% 8.7% 4.3% 20.7% 1H/2004 1,833 1,25
Slide 15: Top 20 Customers by Percentage Sales
Top 20 Customers by Percentage Sales <Non-Consolidated> FY2004 FY2005 1H/FY2006 Customer Percentage Customer Percentage Customer Percentage Seiko Epson ７．７％ Seiko Epson ６．３％ Seiko Epson ６．５％ Athlete FA ３．９％ Denso Techno ４．６％ Denso Techno ５．６％ Denso Techno ３．５％ Alpine ４．１％ Alpine ４．１％ Alpine ３．２％ Son
Slide 16: Summary of Interim FY2006
Summary of Interim FY2006 1. Engineer outsourcing business remains strong. ・Further progress in terms of healthy demand and higher selling price ⇒ promotion of strategic rotation towards high value-added engineer outsourcing business ・Demand still higher than supply in the employment market ・Respond
Slide 17: FY2006 Forecast of Business Results
FY2006 Forecast of Business Results Altech Corporation 14
Slide 18: FY2006 Business Environment and Measures
FY2006 Business Environment and Measures Environment Measures 1. Demand Still Solid ・ Continue to promote strategic rotation, new customer ・ Increasing need to convert man hours and development, and shift towards high value-added services. development costs into variable expenses ・Focus on improving
Slide 19: Review of Group Strategy
Review of Group Strategy Enhance technical capabilities, expand customer base, and promote HR-related business that can help improve consolidated business performance. 1．Quantitative Expansion Focusing on HR-Related Business ⇒ with an eye on M&A and entry into new businesses 2．Existing Group Compani
Slide 20: International Strategy
International Strategy: Establishment of Group of Highly Skilled Engineers in Asia China University of Petroleum Partnership with China University of Petroleum -Partnered with China University of Petroleum directly under the Chinese Department of Education (April 20). -Established Education Center o
Slide 21: Convertible Bond (Paid on 7/10)
Convertible Bond (Paid on 7/10) 1. Aim of Procurement: Medium/Long-Term Growth through Promotion of HR-Related Business ・ Secure funding to enhance the skill level (qualitative improvement) and achieve the quantitative expansion of engineers 2. Maximum Shares: 1,200,000 ・ In the event shares are exp