We would like to express our appreciation to all of our shareholders for your continued understanding and support.
In the year under review, overall the Japanese economy sustained a modest recovery. Although a shrinking labor force prompted labor shortages, the employment and labor situation continued to improve, causing personal consumption and exports to rebound and capital investment to rise gradually. Meanwhile, a sense of future uncertainly is growing due to factors such as, US-China trade disputes, a concern of slowdown in China's economy, movements in EU, trend of the situation in the Middle East and cruid oil price, geopolitical risks, and instability of financial markets.
We will also need to pay attention to the impact towards economic activities by a spate of natural disasters such as cataract in July 2018, powerful typhoon, and earthquake in eastern part of Hokkaido and movements of consumption tax hike.
With regard to public safety in Japan, the number of reported crimes resulted approximately 910,000 in 2017 as the lowest number since World War II. Although the number is declining in rapid pace, people's everyday lives continue to be affected by crimes, including malicious crimes and special case scams targeting senior citizens and differently abled individuals, stalking, and crimes aimed at women, children, and police box.
At the same time, society faces increasingly diverse risks, such as natural disasters, international terrorism, cryptocurrency outflows and other forms of cybercrime, and information leaks.
Summary of Consolidated Financial Results
In this environment, as set in medium-term management plan “Grand Design 2020”, the ALSOK Group will respond to diversifying and sophisticated needs for safety and security of customers and society, with the goal of growing into a comprehensive provider of safety and security, while pursuing the evolution and deepening of security services and related services.
As a result, consolidated net sales rose 2.5% year on year, to ¥215,384 million; operating income grew 7.3%, to ¥13,879 million; ordinary income rose 5.1%, to ¥14,521 million; and profit attributable to owners of parent expanded 9.4%, to ¥8,815 million. We acheived record high, both in sales and profit on an interim basis.
As for the Security Services , we have promoted “ALSOK-ST (read ALSOK Standard)”, a service with a standard security system combined with management monitoring of incursion, fire, equipments, and “ALSOK-GV (read ALSOK G-Five)”, a service that combines image monitoring, information regarding when employees arrive at or leave premisis to be viewed online, while also providing Internet-based remote control functionality for equipment.
Furthermore, we have launched new services as to correspond to diversifying customer needs, such as “3D Lasor Radar”, a service of monitoring sterically eliminating the gap and “ALSOK Multi QR Payment Solution”, a service that allows plural QR payment with compatible terminal.
Additionally, we promoted “HOME ALSOK MIMAMORI SUPPORT”, a service that contributes to a society characterized by falling childbirth and an aging population, and “MIMAMORI TAGS”, which support the construction of regional watch networks.
As for the General Property Management and Fire Protection Services segment, we have put effort in comprehensive management concerning maintenance, management, and operation of various facilities by strengthening cooperation within ALSOK Group. In the Long-term Care Services segment, we approached to the efficiency and improvement in occupancy ratio for long-term care facilities. Besides, Care Plus Co., Ltd., which operates home visit rehabilitation massage, became a consolidated subsidiary as to enhance business structure.
Forecast for the Fiscal Year Ending March 31, 2019
In the fiscal year ending March 31, 2019, the ALSOK Group forecasts net sales of ¥450,000 million, up 3.2% year on year, operating income to grow 9.9%, to ¥33,100 million, ordinary income to rise 9.7%, to ¥35,000 million, and profit attributable to owners of parent to expand 13.7%, to ¥22,000 million.