We would like to express our appreciation to all of our shareholders for your continued understanding and support.
In the year under review, modest recovery continued in Japan, while the employment situation is in improvement tendency. Countries such as China, emerging countries, and resource rich countries having economy downturn, geopolitical risks rising such as the terrorism of IS, Brexit, and the increasing sense of opaqueness in the economy with the concerns of protectionism, these trends appeared as the risk of placing downward pressure on the domestic economy.
In regard to public safety in Japan, crime is declining rapidly, as indicated by the fact that the number of reported crimes in 2015 reached a new post-World War II low. However, there seems to be no end to the occurrence of crimes that affect people’s everyday lives, such as crimes targeting women and children and special-case scams aimed at senior citizens.
At the same time, the range of risks faced by society is diversifying, now including such threats as cybercrimes, information leaks, natural disasters, and frequently occurring international terrorism. ALSOK thus realizes the need for it to provide a wide range of services that respond to social needs as a company responsible for an important piece of social infrastructure supporting the safety and security of society.
Summary of Consolidated Financial Results
In this environment, based on its policy of “responding accurately to customers’ various risks and outsourcing needs,” the ALSOK Group continued working to strengthen and expand its mainstay security services operations while also growing businesses in peripheral fields that are highly compatible with security services, such as long-term care and building maintenance. At the same time, we pursued cost reductions by improving efficiency in security operation divisions by having human resources handle a broader range of functions and integrating guard centers.
Due to the above factors, though net sales rose 8.4% year on year, to ¥199,206 million, with the impact of increased retirement benefit expense, operating income was up 0.0%, to ¥12,527 million; ordinary income rose 0.9%, to ¥13,480 million; and profit attributable to owners of parent increased 3.7%, to ¥7.950 million.
As new services launched to correspond diverse needs of customers such as “Cyber Security Solution for Regional Financial Institutions” which supports regional financial institutions to deal with various information leakage, we also contributed to the safe operation of summit as in Ise-Shima Summit which we worked on the advancement and innovation of security services in large-scale events.
As for the replantation and enhancement of services for the elderly, we advanced sales for “MIMAMORI SUPPORT” and multifunctional mobile security terminal “MAMOLOOK”, while supporting the build-out of the network for monitoring the elderly, as we are now having a demonstration experiment at Sanuki, Kagawa and Kita-kyushu, Fukuoka.
We enhanced the business domain by acquiring the shares of Wisnet Co., Ltd. which runs businesses such as facility services, in-home security services, and other services.
In regard to overseas expansion, for the aim to enhance the security business in Vietnam, we acquired the shares of local security company.
Forecast for the Fiscal Year Ending March 31, 2017
In the fiscal year ending March 31, 2017, the ALSOK Group forecasts net sales of ¥425,000 million, up 11.3% year on year; operating income of ¥32,800 million, up 13.0%; ordinary income of ¥35,000 million, up 14.1%; and profit attributable to owners of parent of ¥22,000 million, up 23.1%, results that will be achieved through the implementation of initiatives such as those described above.