We would like to express our appreciation to all of our shareholders for your continued understanding and support.
During the year under review, Japanese economy remain in difficult circumstances due to the influence of the novel coronavirus outbreak. Although, there are movements to recover productivity with Go To Travel Campaign by economic measurements under the government.
Inauguration of Suga Cabinet was on September 16, 2020, and to take necessary measures under the policy to aim for both measurements of novel coronavirus and social economic activities while watching the environment inside and outside of Japan carefully.
In the security services industry, due to the influence of the novel coronavirus, cancellation of events, sharp decrease in users of public transportation, hiatus and price cutting due to shut-down of stores increased. On the other hand, expectation is raised for services to construct new normal such as to support infection control measures of customers based on guidelines by industries, avoiding the “Three C’s” and contactless society.
Summary of Consolidated Financial Results
In this environment, as a business operator to provide services (Security Services business, General Management of Property and Fire Protection business, and Long-term Care business) concerning safety and security of the society which is indispensable business to stable securement of people’s living and economy, ALSOK Group has been providing appropriate services while taking measures of infection control.Also, as declared in medium-term management plan, Grand Design 2020, the Group aims to become an “integrated safety and security solutions provider” that supports the safety and security of customers and society; it has actually been striving for further evolution and deepening of its security services business and other related business in order to respond to increasingly sophisticated and diversifying safety and security needs of each customer and society. In addition, ALSOK provides products and services to support measurements for novel coronavirus in a proactive manner. As the simultaneous spread of the novel coronavirus and the influenza after autumn is in concern, MBIC Life Co., Ltd., one of the corporate group started novel coronavirus tests including PCR tests from November.
As a result, with the effect of M&A, net sales rose 0.3% year on year, to ¥225,889 million; although achieving record high on interim basis, operating income declined 2.4%, to ¥15,837 million; ordinary income declined 4.6%, to ¥16,466 million; and profit attributable to owners of parent declined 5.8%, to ¥9,960 million.
Forecast for the Fiscal Year Ending March 31, 2021
In the fiscal year ending March 31, 2021, the ALSOK Group forecasts net sales of ¥485,000, up 5.4% year on year. We expect operating income to grow 2.2%, to ¥37,600 million, ordinary income to rise 0.8%, to ¥39,200 million, and profit attributable to owners of parent to expand 2.2%, to ¥24,700 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.