We would like to express our appreciation to all of our shareholders for your continued understanding and support.
Since its founding in 1965, ALSOK has been striving to ensure the safety of customers and society as a leading company in the security industry in Japan, with "arigato no kokoro (a feeling of gratefulness and gratitude)" and "bushi no seishin (a samurai spirit)" as the basic principles of management. This spirit continues to be pursued as the origin of the company, which has not wavered over the years, and as the ideal of the entire group to this day.
In recent years, the risks surrounding the society have become more diverse and complex, such as crimes targeting children and the elderly, attacks and information leaks in cyberspace, increasingly severe natural disasters, and global epidemics of infectious diseases. Under such circumstances, in anticipation of post-corona and with-corona, ALSOK has formulated "GD2025 (Medium-term Management Plan FY2022-FY2026)" in 2021 and is working to implement it.
The safety and security needs of customers and society are also changing with the times, but we will respond by promoting the transformation of our security business model through the shift to DX and the sophistication of services. In addition, we will build an environment where employees can play an active role and strengthen our sustainability initiatives.
As a corporate group responsible for risk management, the ALSOK Group will utilize one of the largest networks in Japan to further ensure the safety and security of people living in society.
Representative Director Group CEO
Tsuyoshi Murai
During the consolidated fiscal year ended March 31, 2024, the Japanese economy experienced some downward pressure from factors such as the decrease in real wages and stagnation of production activities in certain manufacturing industries during the January-March period. However, a gradual economic recovery continued against the background of a pickup in capital investment, moves toward normalizing economic activities in the aftermath of the Covid-19 pandemic, and a recovery in inbound demand. Looking ahead, a gradual recovery is expected to continue under an improving employment and income environment due to wage increases in the spring labor offensives in addition to a recovery in production in some manufacturing industries. On the other hand, in addition to such overseas factors as increasing tensions in the Middle East and Ukraine and concerns over the prospects for the Chinese economy, attention will also need to be paid to increases in the domestic inflation rate due to the weak yen and other such issues.
As stated in the government's 2022 strategy to “Make Japan the World's Safest Country,” society's demand for security services for safety and reassurance is rising amid various developments, placing greater expectation on our Group to provide total services including security. These developments are driven by cyber-attacks on critical public infrastructure and supply chains, concerns about the safety and security of the elderly, women, children and other socially vulnerable groups, increases in violent street crimes and traffic accidents, changes in the security situation brought about by natural disasters such as the January 2024 Noto Peninsula Earthquake, and the aging of public infrastructure. In addition, the number of criminal offenses in 2022 has increased year-on-year for the first time since 2002 and is strongly expected to increase further in 2023. Furthermore, the sense of security in Japan has been worsening thanks to an outbreak of robberies by so-called “illegal part-time jobs” and the theft of copper wires at solar power generation facilities. It may be said that the role of the Group in providing safety and security has been increasing.
Under these circumstances, ALSOK Group has continued to provide appropriate services as a business operator that provides services related to social safety and security (security business, General Property Management and Fire Protection services, and life support business such as nursing care) with the aim to contribute to sustainable societies. As stated in “Grand Design 2025,” our medium-term management plan, we aim to be a safety and security service provider who persistently aims to serve the society's various needs for greater safety and security. To meet the expanding safety and security needs of our customers and society amid diversifying risks, we are working to provide new services that combine a variety of service functions, including security and facility management services and personal nursing care.
As a result of these ongoing initiatives, the Group's consolidated results for the current fiscal year improved compared to the previous year, with net sales increased 5.9% year on year to ¥521,400 million, operating income increased 5.6% year on year to ¥39,082 million, ordinary income increased 7.5% year on year to ¥42,173 million, and net income attributable to owners of the parent increased 14.1% year on year to ¥27,327 million.
In the fiscal year ending March 31, 2025, the ALSOK Group forecasts net sales of ¥550,000million, up 5.5% year on year. We expect operating income to grow 3.1%, to ¥40,300 million, ordinary income to rise 2.2%, to ¥43,100 million, and profit attributable to owners of parent to expand 1.0%, to ¥27,600 million.
June 2024