Top Message

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 accounting period of 2Q, the Japanese economy continued to experience a gradual economic recovery against the background of a pickup in production and capital investment as well as improvement of corporate profits, while stagnation in the recovery of personal consumption and export was observed. Looking ahead, a gradual recovery is expected to continue under an improving employment and income environment, including an expectation for an increase in real wages. On the other hand, the trend of exchange rates and financial markets in response to the election results in Japan and the US, tensions in the Middle East and Ukraine, downward risks in the Chinese and European economies, and other factors demand caution.

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 increased year-on-year for the first time since 2002 and is strongly expected to increase further in the subsequent years. Furthermore, the sense of security in Japan has been worsening due to a series of robberies mainly in the Metropolitan Area and crime activities by foreigners. 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 Service, Facility Management Services etc., Long-term Care Services, and Overseas Services) 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, facility management and long-term care.

As a result of these ongoing initiatives, the Group's consolidated results for this consolidated accounting period of 2Q improved with net sales increased 6.9% year on year to 263,280 million yen. However, due to the implementation of wage raise, additional costs related to the end of 3G transmission, increase of allowance for doubtful accounts, and other factors, operating income decreased 12.5% year on year to 15,603 million yen, ordinary income was decreased 12.4% year on year to 16,994 million yen, and net income attributable to owners of the parent decreased 14.9% year on year to 10,091 million yen.

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.

December 2024