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
The economic situation of Japan during the consolidated cumulative period of 2Q continued to experience smooth economic recovery backed by actions for normalizing economic activities since the COVID-19 pandemic and by a recovery in inbound demand. With regards to future prospects, we expect improvements in personal consumption thanks to improvements in employment and income environments and expect smooth growth due to factors such as increased equipment investments by businesses. However, in addition to unfavorable factors such as decreases in real purchasing power due to rising prices and deceleration of the global economy, there is tension in the Middle East due to the conflict between Israel and Hamas, so there is a strong sense of uncertainty about the future.
In the field of security, as indicated in the government’s “Strategy for Making Japan the World Safest Country 2022,” society’s expectations of the security industry are rising, not only because of the threats in cyberspace and concerns about the safety and security of the elderly, women, children, and other vulnerable groups in society, but also because of the increase in violent crimes and accidents in the streets, successive natural disasters, and aging infrastructure. Under these circumstances, our group is required to provide total services including security. In addition, the number of criminal offenses in 2022 increased year-on-year for the first time since 2002, and the increasing trend is further strengthening in the first half of 2023, as well as the attacks on the prime ministers, and robberies and thefts by so-called “illegal part-time jobs” occurred. In this situation, the perceived security in Japan is deteriorating, at the same time, the role of our group in providing safety and security is increasing.
Under these circumstances, ALSOK Group has continued to provide appropriate services as a business operator that provides services related to social safety and security (security business, total management and disaster prevention business, and life support business such as nursing care) with the aim to contribute to sustainable societies. As stated in “Grand Design 2025,” our medium-term management plan, we aim to be a safety and security service provider who persistently aims to serve the society's various needs for greater safety and security. 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 and facility management services and personal nursing care.
As a result of the above, our group’s consolidated business results for the current consolidated cumulative second quarter improved significantly compared to the previous quarter, and furthermore, they were also solid when compared to Q2 of the fiscal year ended March 2019, and Q2 of the fiscal year ended March 2020 before the COVID-19 pandemic. Consolidated net sales increased 4.4% year on year to ¥246,379 million, operating income increased 17.1% year on year to ¥17,825 million, ordinary income increased 17.3% year on year to ¥19,406 million, and quarterly net income attributable to owners of parent company increased 21.4% year on year to ¥11,852 million.
In the fiscal year ending March 31, 2024, the ALSOK Group forecasts net sales of ¥512,500 million, up 4.1% year on year. We expect operating income to grow 4.3%, to ¥38,600 million, ordinary income to rise 4.5%, to ¥41,000 million, and profit attributable to owners of parent to expand 6.5%, to ¥25,500 million.