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Summary of Consolidated Financial Results

During the year under review, business sentiment in Japan deteriorated substantially due to the spread of COVID-19, while the business environment continues to face substantial challenges. Regarding the future outlook, although a recovery is anticipated due to the promotion of COVID-19 vaccinations and the effects of various policies, uncertainties such as the spread of new, highly infectious viral variants and state of emergency redeclarations are expected to continue.

In the security service industry, the impact of COVID-19 was seen in an increased number of terminations and fee discounts in security service contracts due to the cancellation, postponement or downsizing of events and the suspension or termination of retail business activities. At the same time, there are growing expectations for the provision of enhanced ALSOK Group services, such as those that support customer infection prevention measures, consider the security and safety of senior citizens, women, children and other vulnerable members of society, and prepare for ongoing natural disasters and aging infrastructure.

In this environment, the ALSOK Group has continued to provide appropriate services as an operator of service businesses related to the safety and security of society (the Security Services business, General Property Management and Fire Protection Services business, and Long-Term Care Services business), which are indispensable for ensuring the stability of the lives of the people and the national economy while taking sufficient infection prevention measures. Further, the Group has aimed to become an “integrated safety and security solutions provider” that supports the safety and security of customers and society, conducting demonstration experiments related to Security Services advances using local 5G and drones among other efforts to further advance and deepen the Security Services business and other related businesses to respond to increasingly sophisticated and diversifying safety and security needs of each customer and society. Additionally, ALSOK proactively provides products and services supporting COVID-19 countermeasures, including the start of PCR and other types of COVID-19 testing at Group Company MBIC Life Co., Ltd.

As a result, driven partly by contributions from M&A activities, consolidated net sales increased 2.1% year on year to ¥469,920 million, operating income increased 1.1% to ¥37,182 million, ordinary income increased 0.9% to ¥39,212 million, and profit attributable to owners of parent increased 3.5% to ¥25,014 million.

Forecast for the Fiscal Year Ending March 31, 2022

In the fiscal year ending March 31, 2022, the ALSOK Group forecasts net sales of ¥500,500, up 6.5% year on year. We expect operating income to grow 13.2%, to ¥42,100 million, ordinary income to rise 10.9%, to ¥43,500 million, and profit attributable to owners of parent to expand 9.9%, to ¥27,500 million.

In the coronavirus pandemic, as an operator to carry out one’s duty to provide services concerning society’s safety and security, ALSOK will continue to approach towards improvement of productivity and utilization of new technology and will accurately respond to the expanding needs of safety and security of the society.

June 2021