ALSOK TOP > Investor Relations > Top Message
Securities Code:2331
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  • Top Message

  • THE ALSOK Group is constantly striving to make substantial contributions toward securing public safety
    We would like to express our appreciation to all of our shareholders for your continued understanding and support.
  • Business Environment
    In the year under review, the general trend toward modest recovery continued in Japan as improvements were seen in corporate business sentiment, investment, and exports during the second half of the fiscal year as the inauguration of the Trump presidential cabinet in the United States simulated yen depreciation, all in the midst of ongoing improvements in the job market and wages.

    Despite the steady recovery of the U.S. economy, the overseas economy became increasingly opaque as a result of rising geopolitical risks, such as those associated with terrorist attacks by ISIS and the issues surrounding North Korea, as well as concerns regarding the United Kingdom's decision to leave the European Union and the trend toward protectionism. Accordingly, the current operating environment requires ongoing caution, and this need for caution extends to the economic policies to be implemented by the Trump presidential cabinet in the United States.

    In regard to publicsafety in Japan, the number of reported crimes is declining rapidly and has set a new record for post-World War lows each year since 2015, coming to approximately 990,000 in 2016. However, there seems to be no end to the occurence of crimes that affect people's everyday lives, such as malicious crimes and special-case scams targeting senior citizens and differently abled individuals as well as crimes aimed at women and children. At the same time, the range of risks faced by society is diversifying, now including such threats as natural disasters, cybercrimes, information leaks, and frequently occuring acts of 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 facility management and other building maintenance services. At the same time, we pursued cost reductions through efficiency improvements in security operation divisions realized by having human resources handle a broader range of functions as well as through the consolidation of Guard Centers.

    Due to the above factors, consolidated net sales rose 8.3% year on year, to ¥413,343 million, and profit attributable to owners of parent increased 2.6%, to ¥18,330 million, increases that were also due to part to new M&A activities conducted in long-term care service operations. Meanwhile, operating income was down 2.1%, to ¥28,422 million, and ordinary income declined 1.2%, to ¥30,309 million, due to the impacts of higher retirement benefit expenses and labor shortages.
  • Priority Measures
    We launched new services such as "Cyber Security Solution for Financial Institutions" for the aim to support regional financial institutions which corresponds to various risks with small number of people. In addition, we began offering "Net the Security Guards" which allows customers to request security guards with ease via internet. Through this service, we aim to increase the scale of market for temporarly security service and thereby serve customers other than those that use ALSOK services on an ongoing basis, a group of customers that has previously faced difficulty placing direct request.

    Moreover, as growing needs toward security enhancement and high quality security corresponding to various risks and terrorism occuring frequently being the background. We worked on relevant sophistication and innovation of the security business for large-scale events such as Ise-Shima Summit security and 2017 Sapporo Asian Winter Games security.

    As for the repletion and enhancement of services for the elderly, besides the sales promotion of "Mimamori Support(emergency alert service)" and "Mamolook", a GPS terminal with communication function, we support the "Construction of network watching over the elderly" utilizing IC tag, demonstration experiment in each autonomus body.

    Concerning the M&A, we have been making efforts to enlarge the business scale by the subsidiary acquisition of Wisnet Co., Ltd. which runs a long-term care business, and ALSOK SHOJITSU SECURITY SERVICE CO., LTD. which the predecessor is Hitachi Security Service Co., Ltd.

    Also, with the aim further expanding overseas markets, we converted partnered local security companies in Vietnam and Indonesia into consolidated subsidiary and thereby enhanced our systems for deploying full-fledged security srevices operations in these countries.
  • Forecast for the Fiscal Year Ending March 31, 2018
    In the fiscal year ending March 31, 2018, the ALSOK Group forecasts net sales of ¥440,000 million, up 6.4% year on year; operating income of ¥33,400 million, up 17.5%; ordinary income of ¥35,000 million, up 15.5%; and profit attributable to owners of parent of ¥21,500 million, up 17.3%, results that will be achieved through the implementation of initiatives such as those described above.

    June 2017