We would like to express our appreciation to all of our shareholders for your continued understanding and support.
Summary of Consolidated Financial Results
During the year under review, the business sentiment in Japan had declined, especially among major manufacturers, since the second quarter, due to deceleration of the world economy and other factors. Moreover, with the global pandemic of COVID-19, the economic activities of major Western countries have stalled since february this year. Faced with this situation, there are concerns that the Japanese economy may experience an economic downturn far greater than that of the Lehman crisis.
In this environment, the ALSOK Group, as an operator of service business related to safety and security of society (the Security Services business, Genera Property Management and Fire Protection Services business, and Long-Term Care Services business), has continued to operate business by providing appropriate services.
In addition, as stated in its Medium-Term Management Plan, Grand Design 2020, the Group has aimed to become an integrated safety and security solutions provider that supports the safety and security of customers and society; it has actually been striving for further evolution and deepening of its Security Services business and other related businessesin order to respond to increasingly sophisticated and diversifying safety and security needs of each cutomer and society.
As a result, consolidated net sales increased 3.7% year on year to ¥460,118 million, operating income increased 14.0% to ¥36,795 million, ordinary income increased 14.8% to ¥38,880 million, and profit attributable to owners of parent increased 8.5% to ¥24,163 million, achieving record high both in sales and income.
Forecast for the Fiscal Year Ending March 31, 2021
In the fiscal year ending March 31, 2021, we expect the Japanese economy to contract markedly due to the influence of the novel coronavirus outbreak. While event cancellations and retailers and corporations that are forced to suspend oerations or go out of business are projected to increase, the security industry will likely face terminations/cancellations of contract and discount in security fees. Further, public security is expected to deteriorate given increases in the number of empty hops and offices due to temporary closure and progress in remote works, growing concerns over security and safety of senior citizens and provide the Group with new opportunities and additional security needs.
In this business environment, the ALSOK Group remains committed to prevention of the spread of infection and ongoing business operations, in accordance with the basic action policy, guidance of municipalities, and guidelines formulated by each industries. The Group also makes every effort to appropriately address emerging needs for safety and security of customer and society.
The Group also aims to become an"integrated safety and security solutions provider" that supports the safety and security of customers and society. To that aim, in addtion to strengthening and expanding its Security Services business against the backdrop of diversifying customer needs, the Company will work to promote its facilities management operations both in Japan and abroad and strengthen its Long-Term Care Services and other business, and offer new products and services utilizing cutting-edge technologies in order to improve productivity. By these efforts the Company ultimately achieve its sustainable growth.
Consequently, the ALSOK Group forecasts net sales of ¥485,000 million for the fiscal year ending March 31, 2021, up 5.4% year on year. We expect operating income to grow 2.2%, to ¥37,600 million, ordinary income to rise 0.8%, to ¥39,200 million, and profit attributable to owners of parent to expand 2.2%, to ¥24,700 million.