Top Message

We would like to express our appreciation to all of our shareholders for your continued understanding and support.

Business Environment

During the fiscal year under review, the Japanese economy continued its overall movement toward recovery after September 2021 when the fifth wave of coronavirus infection rapidly subsided, although many prefectures declared state of emergency and implemented priority measures to prevent the spread of COVID-19 which has been ongoing since the year before last. Although further recovery was expected due to the prevalence of vaccinations, the outlook remains uncertain due to the spread of the highly infectious variant. In addition, a drastic uptrend in prices of resources and raw materials due to the logistical disruption caused by the COVID-19 pandemic was accelerated by Russia's invasion of Ukraine in February, bringing on a different set of circumstances from those of the 30-year period of stagnation and deflationary economy. Looking ahead, despite the formulation of comprehensive emergency policy measures against price hikes in crude oil and other goods, the impact that will be exerted on the Japanese economy by the weak yen, soaring prices of crude oil and other raw materials, and rising production costs including higher wages is unpredictable. Cautious observation is further required of overseas situations such as rising inflation and monetary policy trends in the United States, the slowdown of the Chinese economy due to the zero-corona policy and other factors, the situation in Ukraine, and geopolitical risks such as North Korean missile test launches.

In the field of security, customers' needs for safety and security are expanding to encompass measures to prevent infectious diseases, particularly in manufacturing industries. In recent years, there has been an increase in the number of cyber-attacks on critical infrastructure and supply chains, for which international countermeasures need to be strengthened. Other sources of concern include the declining birthrate, aging population and declining workforce, as well as the safety and security of the elderly, women, children, and other vulnerable social groups. The arson-murder case in Osaka last December that caused numerous casualties and the Shiretoko sightseeing boat accident have been among the crimes and accidents close to people's daily lives, which have been on the rise. Against a backdrop of successive natural disasters, aging infrastructure, and calls for regional development, society's needs for safety and security are diversifying, and environmental needs, such as the formation of a carbon-neutral and recycling-oriented society, are increasing. Therefore, the expectations on our Group to continue to provide integrated services for security, facilities, and long-term care remain high.

Summary of Consolidated Financial Results

In this environment, the Group has continued to provide appropriate services as an operator of service businesses 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. In addition to playing a central role in security for the Olympic and Paralympic Games Tokyo 2020, we have contributed to the response to the COVID-19 contagion by providing security at vaccination sites and other locations. 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.

As a result, consolidated net sales increased 4.1% year on year to ¥489.0 billion, operating income increased 15.3% to ¥42.8 billion, ordinary income increased 14.2% to ¥44.7 billion, and profit attributable to owners of parent increased 15.8% to ¥28.9 billion.

Forecast for the Fiscal Year Ending March 31, 2023

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.

June 2022