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
During the fiscal year under review, the Japanese economy continued to suffer from the spread of the 7th wave of the coronavirus infection, rising raw material costs against the backdrop of high resource prices and the weak yen, and constraints on the supply of semiconductors. A gradual recovery continued amid moves toward normalization. As for the future, as the number of people infected with coronavirus is decreasing, there are expectations for the economic measures of the government in the future, and a moderate economic recovery centered on domestic demand such as personal consumption and capital investment can be seen. On the other hand, it is necessary to pay attention to the deterioration of the situation in Ukraine, the risk of economic recession in the United States, Europe, China, etc., and the movements of interest rates and exchange rates in the financial markets.
In the field of security, there has been an increase in the number of cyber-attacks on critical infrastructure and supply chains, declining birthrate, aging population and declining workforce, as well as the safety and security of the elderly, women, children, and other vulnerable social groups, increase in familiar crimes and accidents, successive natural disasters, and aging infrastructure. Against a backdrop of these matters, society's needs for safety and security are diversifying. Therefore, the expectations on our Group to continue to provide integrated services for security, facilities, and long-term care remain high.
In this environment, the Group has continued to provide appropriate services as an operator of service businesses (security service business, general property management and fire protection service, and elderly life support such as long-term care services) related to the safety and security of society, which are indispensable for ensuring the stability of the lives of the people and the national economy, while taking sufficient infection prevention measures. As stated in “Grand Design 2025,” our medium-term management plan, we aim to become a resilient integrated safety and security solutions provider that supports the safety and security of our customers and society. 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, facilities, and long-term care.
The Company have continued with the above initiatives, but as for the fiscal year ended September 30, 2022, decrease in sales related to the Tokyo 2020 Games, increase in system-related expenses, etc. could not be covered. As a result, consolidated net sales decreased 3.8% year on year to ¥236.0 billion, operating income decreased 38.7% to ¥15.2 billion, ordinary income decreased 35.7% to ¥16.5 billion, and profit attributable to owners of parent decreased 39.4% to ¥9.7 billion.
In the fiscal year ending March 31, 2023, the ALSOK Group forecasts net sales of ¥510.0 billion, up 4.3% year on year. We expect operating income to grow 5.7%, to ¥45.3 billion, ordinary income to rise 4.9%, to ¥47.0 billion, and profit attributable to owners of parent to expand 3.2%, to ¥29.9 billion.