Fiscal Year Ended March 31, 2020

SOHGO SECURITY SERVICES CO., LTD.

Securities Code: 2331

ALSOK Charter

Management Philosophy

Based on two core principles exemplified by“arigato no kokoro” (a feeling of gratefulness and gratitude)and “bushi no seishin” (a samurai spirit), we devote
ourselves to protecting the safety and security of ourcustomers and of society as a whole.
Management Guidelines

1. Fundamental Spirit
Under any condition that we face, we work hard to live by a fundamental spirit thatreflects our management philosophy—as exemplified by a feeling of gratefulness andgratitude and a samurai spirit based on toughness, fairness, and generosity—to be ahighly principled company.

2. Priority
Our top priority is to provide products and services of the first rank, while cultivating thehighest levels of motivation in our employees and living up to shareholder expectations
through attractive profit growth.

3. Basic Strategy
While security services remain at the heart of our business, as our basic strategy, we alsoseek to offer a diverse range of products and services in new fields to satisfy the needs ofthe everchanging times.

4. Contributing to Society
Allying ourselves with public bodies charged with protecting public safety and security,
we commit ourselves to developing value-adding products and services, thereby always
contributing to society.

Code of Conduct

1. We will devote ourselves to serving our customers and society as a whole in a waythat reflects a feeling of gratefulness and gratitude.
2. We will embody a samurai spirit in everything we do based on toughness, fairness,and generosity, standing firm in the face of adversity and banding together toembrace success.
3. We will value autonomy in our actions, empowered by “yachoseishin” (the spirit of awild bird)—which represents independence, self-respect, perseverance, acuity, andtenacity—and take responsibility for delivering results.
4. We will carry out our day-to-day activities based on the principles of sincerity,
accuracy, strength, and speed.
5. We will know no complacency, always marching forward purposefully while growing
and refining our business to continue to provide value to customers and to society as
a whole, thereby continuing to be relevant.
6. We will pursue perpetual self-improvement and remain highly committed tocompliance, thereby attracting and nurturing human resources of the caliber worthy of
the industry leader.

Focused

Editorial Policy

ALSOK REPORT
Comprehensive

ALSOK Report 2020 has been constructed as an integrated report thatcompiles financial information on the Company’s performance, business
operations, and strategies as well as non-financial information on its
corporate social responsibility (CSR) activities and other topics withthe aim of obtaining the opportunity to deepen our engagement withshareholders, investors, and other stakeholders. In addition todescribing the state of management from an economic perspective,
this report also explains the ALSOK Group’s environmental, social, andgovernance (ESG) initiatives as well as the various CSR activities theGroup carries out to contribute to the international society’s drive toachieve the United Nations’ Sustainable Development Goals (SDGs),
along with the Group’s approach to achieving growth throughsustainable value creation and its business structure that supports
medium- to long-term management, business strategies, and growth.

Investor Relations
CSR

Data and more detailed information on corporate activities that were notincluded in this report are available on the Company’s corporate website.

Reporting MediaThe Company provides reports in the forms of a pamphlet and a
website, making full use of characteristics of the respective media. In
the pamphlet version, items are narrowed down to those of higher
importance or with greater interest among readers and the explanations
on them are provided in a manner that is easy to read and understand.
Meanwhile, the website version comprehensively includes financial
information and the initiatives related to CSR and other matters in general.

01

Impor tance to the ALSOK Group and stakeholders

Information for Shareholders
and Other Investors

CSR and Social
Contribution Activities

IR website: https://www.alsok.co.jp/en/ir/

CSR website: https://www.alsok.co.jp/en/csr/

ALSOK’s corporate website
includes detailed information on
the Company’s management
policies, financial position,business performance, and stocks
as well as an assortment ofinvestor relations (IR) materials.

Detailed information on the CSR
and social contribution activities
that ALSOK is advancing as partof its business activities based on
ISO 26000 can be found on its
corporate website.

Message from the Chairman

Value That the ALSOK Group
Needs to Provide to SocietyFirst of all, my thoughts are with all the victims of the current novel
coronavirus (COVID-19) pandemic and I would like to express my sincere
sympathies to those who have been infected with the disease.
ALSOK was founded in 1965, led by the experience of the founder who wasa former police bureaucrat and was deeply involved in the operations of
the 1964 Tokyo Olympic Games in the previous year. Since its foundation,
the Company has continued to make efforts on a daily basis to protect thesafety and security of customers and society under the two principles set
out in its management philosophy of “arigato no kokoro” (a feeling ofgratefulness and gratitude) and “bushi no seishin” (a samurai spirit). To thisday, the whole ALSOK Group has embraced this spirit as its unwavering
origin that should be passed down across generations among all its
employees and continues to pursue its ideals.
In recent years, threats facing society are growing more diverse as
exemplified by, among others, crimes preying on children, senior citizens,etc., cybercrimes and information leakage, intensifying natural disasters, andthe global spread of infectious diseases. As a company responsible for a
critical component of social infrastructure supporting the safety of society,we devote ourselves to contributing to the resolution of these social issues
through our business and to the sustainable creation of corporate value andfurther ensuring the safety of people who live in society.
With the Olympic and Paralympic Games Tokyo 2020* postponed to thefollowing year, we consider it as an opportunity to reaffirm our founding
philosophy and aim to put all our efforts into fulfilling our responsibility as arepresentative of the Olympic and Paralympic Games Tokyo 2020 Security
Consortium and contributing to achieving a safe event through concerted
efforts of the industry.
Chairman and Representative Director
Chief Executive Officer (CEO)Atsushi Murai* ALSOK is a Tokyo 2020 Official Partner (Security Services and Planning).

C O N T E N TS
01
02
03
07
09

ALSOK Charter/Editorial Policy

11
15
17

The ALSOK Group’s Business Operations

19

Special Feature:

Message from the Chairman
Talk with the President
ALSOK’s History of Value Creation
Financial Highlights/Non-Financial Highlights

ALSOK’s Strengths
ALSOK’s Value-Creation Model

23
25
27
29

Special Feature:
What ALSOK Can Do for Cyberspace Safety
and Security

CSR Management
Consideration for the Global Environment
Providing Products and Services That Help
Resolve Social Issues

31

Human Resource Development andEmpowerment Initiatives

33
35
37
41

Community Contribution Activities
Quality Improvement Initiatives
Corporate GovernanceDirectors, Audit & Supervisory Board Members,
and Executive Officers

ALSOK’s New Service Lineup

21

To Realize a Sustainable Society

45
50

Financial Section
Corporate Information/Stock Information

02

Talk with
the President

CROSS

TALK

ALSOK’s Social Role in the
Coming Post-Pandemic Era

The spread of the infectious disease COVID-19 both in Japan and overseas is causing a serious impact on
our society and economy. What are the roles that ALSOK is expected to play as society undergoes a majorchange after the COVID-19 pandemic? We have invited Mr. Atsushi Nakajima, who is currently a professor
at the University of Niigata Prefecture and a former chairman of the Research Institute of Economy, Tradeand Industry, to talk with President Aoyama and get his valuable opinion on measures that ALSOK should
implement from now on.

President and Representative Director
Chief Operating Officer (COO)

Professor, University of Niigata Prefecture

Yukiyasu Aoyama
ProfileMarch 1975
April

1975
1980

July

1992

July

1993

July

1994

August 1995
June

03

2000

Atsushi Nakajima
ProfileGraduated from the Universityof Tokyo, Faculty of Law
Jointed the Ministry of FinanceDistrict Director of the Itako
Tax Office
Visiting Researcher at the
University of Oxford
Director, Minister’s Secretariat
and Research and Planning
Division, Minister’s Secretariat
Deputy Commissioner (Large
Enterprise Examination andCriminal Investigation), Tokyo
Regional Taxation Bureau
Chief of the Wakayama
Prefectural Police
Director of the Planning and
Coordination Division, Planningand Coordination Bureau,
Environment Agency

July
July

2002
2003

December 2005
July

2006

July
2008
August 2008
June

2009

April

2010

April

2012

Director-General, Yokohama Customs
Counselor and Deputy Director-Generalof the Customs and Tariff Bureau of the
Minister’s Secretariat
Visiting Professor at the Universityof Tokyo
Director-General, Customs and Tariff
BureauRetired from the post
Joined the Company as Senior
Executive Officer
Executive Vice President andRepresentative Director
Senior Executive Vice President andRepresentative Director
President and Representative Director(Current)

March 1975
April

1975

August 1987
April

1992

May

1995

June

1997

October 1999
June

2000

Graduated from the Universityof Tokyo, Faculty of Law
Joined the Industrial Bank ofJapan, Ltd. (IBJ)
Senior Manager, Research
Department, Head Office, IBJ
Senior Manager, International
Finance Department, Head
Office, IBJ
Senior Deputy General
Manager, Industry Research
Department, Head Office, IBJ
Deputy General Manager,
General Manager, IBJ Paris
BranchPresident, Banque IBJ (France)
S.A.
Chief Economist & General
Manager, Research
Department, Head Office, IBJ

April 2002–
March 2003
March 2003–
March 2004

April 2004–
March 2011
April

2011

April

2020

June

2020

Executive Officer & Chief Economist,
Mizuho Research Institute Ltd.; Chief
Economist & General Manager, Research
Division, Mizuho Corporate Bank
Executive Officer, Chief Economist &General Manager, Research Division,
Mizuho Corporate Bank; Executive
Officer & Chief Economist, Mizuho
Research Institute Ltd.
Senior Managing Executive Officer &Chief Economist, Mizuho ResearchInstitute Ltd.
Chairman, Research Institute of
Economy, Trade and Industry (RIETI), IAA
Professor, University of Niigata Prefecture(Current); Consulting Fellow, RIETI, IAA(Current)
Chairman, Maison franco-japonaise(Current)

Theme 1

Changes in the Environment Surrounding ALSOK—What Is Happening in Society Amid the COVID-19 Pandemic?—
Nakajima: COVID-19 continues to spread even now, anddetail, such as indoor air purification and new mask-wearing

concerns remain about its second and third waves and evenequipment to prevent people from having a heat stroke, andabout the possible occurrence of a new pandemic in the future.

eventually expand our contribution to wider areas such as

As the current situation in which infection prevention is essential

danger detection and the prevention of the spread of infection

is expected to continue, non-face-to-face interactions andto combat new risks posed by COVID-19. To beat this invisible

social distancing will continue to be required in addition to theenemy, we must provide solutions that fight COVID-19 as partenhancement of the medical system. For this reason, I thinkof our own duties rather than totally depending on medicalthat businesses need to make further progress going forward in

professionals.

work-style reform to realize a flexible work style including theenhancement of working from home.
The economy is now on a moderate recovery trend after a

Moreover, our challenges also include how to support thesocially vulnerable. Beyond the Emergency Reporting services
for senior citizens that we have been providing for some time insevere recession, but is unlikely to recover to pre-pandemic

coordination with municipalities, ALSOK is expected to realize

levels soon. Governments in Japan, the United States, andcomprehensive services to be provided to people in a wide

Europe are currently supporting businesses and employment

variety of circumstances, including long-term care services.

through massive fiscal spending, but it is difficult for them tocontinue such spending indefinitely. On the other hand, theNakajima: The current pandemic urges ALSOK to reinvent

IT-based digitalization of the economy is a virtual economic

traditional security services, such as preventing an intruder from

activity and is not physically damaged by disaster or pandemic.

getting into a building, and to focus more on the concept ofIn that sense, it is also necessary to expand the breadth of the“life-oriented security” to protect all aspects of people’s lives.

digital economy.
It has also become clear that the current COVID-19 crisis

Aoyama: Exactly. To protect people’s safety and security, we

has widened gaps in society, particularly in the United Statesneed to enhance the service function to arrive on the scene

and certain other countries. With limited room for furtherof any emergency quickly. We also need to promote further

government spending expansion, governments are facing thereforms in the areas in which we faced challenges even before

question of how to implement measures to correct such gaps

the COVID-19 pandemic. In preparation for the Olympic andwhile also paying attention to achieving fiscal soundness. They

Paralympic Games Tokyo 2020, we have already been working

are expected to tackle this issue through, for example, social

to improve efficiency in staff assignment for security operations

security and tax reforms.

at events by adopting a mechanism called Zone Security

In any case, as the threat of the virus is unlikely to disappear

Management, to introduce video-based judgment, and tocompletely, this “new lifestyle” of non-face-to-face interactions

provide electronic security services including facility

and social distancing will continue into the future, although it ismanagement. We need to promote efforts like this even further

somewhat inconsistent with the true nature of human beings,

going forward and to accelerate the digitalization of security

which are social animals. As the new lifestyle is going toservices and facility management by actively utilizing big data,

continue, the important point is how to secure sufficientAI, etc.

economic activities and support personal lives.
Nakajima: Vast data is being pooled at ALSOK every day from
Aoyama: In the security and long-term care services, physicalall over Japan. For this reason, I think that ALSOK is mostcontact is often essential, and it is not always easy to provide

closely positioned to be able to utilize big data in various ways

such services on a non-contact basis. Our duty as essential

in protecting the safety and security of our lives.

workers is to protect the safety and security of customers
while paying maximum attention to the prevention of infection.

Speaking of protecting peoples’ lives, ALSOK is also
engaging in and expanding long-term care services.

Meanwhile, amid the lingering pandemic, I feel that ALSOK will
have to expand the scope of protection that we provide andAoyama: ALSOK has been engaging in services of a highly

think about what we can create from there and what solutions

public nature for many years based on our founding spirit of

we can provide in doing so. For example, we could start from a“arigato no kokoro” (a feeling of gratefulness and gratitude) and04

Talk withthePresident

CROSS

TALK

“bushi no seishin” (a samurai spirit) based on toughness,

services and long-term care services. We are currently

fairness, and generosity. In that sense, I think that ALSOK is theoperating home-visit long-term and nursing care services andright company to engage in long-term care services.

in-facility care services in a comprehensive manner, operating

In terms of “quickly arriving on the scene to respond,” thereroughly 6,500 rooms in the Tokyo metropolitan area andis much in common between the Emergency Reporting

providing services to approximately 18,000 people including

services that we provide in collaboration with municipalities andvisiting medical massage. We are also providing services not

home-visit long-term and nursing care services. Therefore,

covered by long-term care insurance and programs for those

we can say that it is harmonious to engage in both security

who are financially disadvantaged.

Theme 2

Toward the Sustainable Growth of ALSOK—Changes in the Environment and ALSOK 10 Years from Now—
Nakajima: Senior citizens and those who are financiallydevelopments, I keenly realize the importance of environmental

disadvantaged are at the same time those who are socially andprotection as well as social distancing. The problem offinancially vulnerable to the pandemic. Amid declining birthincreases in harmful birds and animals must also have comerates and population aging, properly protecting these people isoriginally from the environmental problem.

a task that society and businesses as well as the government
should tackle. In addition, as a mature country, Japan is one

Nakajima: In view of the current pandemic-affectedof the world’s largest holders of financial assets both in Japanenvironment, it is essential to find ways to embed socialand overseas. As the digitalization of the economy advances

distancing in society in a manner suitable for the times. Witheven further, the need to protect the network in managing

the expectations for massive movements of people and goods

financial assets is expected to increase. If the scope ofas well as mass production and consumption to slow down

protection is to expand from houses, commercial and industrialfrom now on, the important issue is how we create future society.

buildings to include senior citizens and those who are financially

Regarding ESG, some had argued until several years ago

disadvantaged, financial assets, networks, and peoples’ lives inthat ESG was nothing but a burden on businesses, but recent

general, this means that ALSOK should consider how it cananalyses indicate that companies that focus on ESG are also

protect the safety and security of economic activities in general

highly profitable. This is a time that ESG links directly toin an integrated manner.

corporate value, and companies that focus on the SDGs andIn addition, it is certain that expectations for ALSOK to

CSR are extremely reassuring for everybody.

protect the environment in addition to the economy will
increase at an accelerating pace in the future. The European

Aoyama: What you say is very true. To continue high growthCommission initiated the European Green Deal in May 2020 tothrough mass production and consumption may be just a

promote green economy based on environmental preservation

daydream in a sense. As corporate value is evaluated based

and sustainable society, in addition to the enhancement of the

not only on earnings but also on social contributions,medical system and digitalization.

businesses cannot exist if they do not contribute to society.

Although the concept of ESG has evolved into the SDGs,

For example, if we look around while working from home,their focus on harmonious coexistence with society remains thewe could find many areas in the local community in which wesame. I am impressed with the timeliness of ALSOK’s “arigato

can contribute. By adopting a different perspective, we could

no kokoro” and “bushi no seishin” in such a situation.

work on a variety of things beyond security services.

Aoyama: As I said earlier, “bushi no seishin” means a tough, fair,narrow to express the roles of ALSOK. The phrase “life-oriented

and generous heart, which leads to the protection of the weak,security” you used just now is a very good expression. In thatwhile “arigato no kokoro” means our gratitude for everybody

sense, I think we can do many more things yet.

If so, the phrase “security services” that we have used is too

who has supported our existence since our foundation in 1965.
Since prehistoric times, viruses have always existed in

05

Nakajima: In the area of home security services, for example,

woods that were at a distance from human lives. But we havesecurity includes the prevention of online intrusion in thecleared more and more forests and become infected withinternet era, and we cannot ask application providers toviruses through livestock and other agents. From theseprovide such services. Keeping storage batteries at home toprepare for power outage is also part of home “protection.”

been expanding to include disasters, fraud, cyberattacks, etc.

The scope of security would be quite wide if it is to include

ALSOK was founded as a security services company, but

the prevention of various inconveniences that could happen at

is currently providing diverse services ranging from security

home.

services to facility management, construction work, andlong-term care services. In 10 years from now, we aim to grow

Aoyama: We currently provide, for example, Tobilaphone

to become a company that provides both security and facility(a service to prevent fraudulent phone calls to senior citizens

services leveraging facility management and firmly supports theliving alone), Soliton SecureDesktop (a service to provide a safe

safety and security of the local community through long-term

teleworking environment), and shelter solution (a one-stop service

care services. We will work to play an important role infrom evacuation support to infectious disease control measuresprotecting and supporting our customers’ lives in an integrated

at the shelter). We originally provided protection against thieves,manner as a private-sector service provider to supplement

but the scope of risks against which we provide protection has

services provided by the national government.

Theme 3Message to Our Stakeholders
Nakajima: How we can lead a safe, secure, and fulfilling life will

Aoyama: To provide wider social security services than before,be even more significant from now on. “Security services” inwe must build capabilities to respond to a wide variety ofa narrow sense sound stiff, but ALSOK is at the forefront ofsituations by further strengthening capacity building including“protection” in a broader sense and engages in a wide

human resource development. While building such capabilities,

spectrum of activities with a strong sense of social

we will work to secure a firm foothold on a daily basis to aim for

responsibility. I expect ALSOK to push forward with these

ideals in 10 years from now. Although it is not necessarily easy

activities going forward as a company that plays a significant

to foresee how the post-pandemic society will be, we need torole in supporting the entire social framework as well as

act quickly by anticipating what customers will need and want

individuals and businesses by providing social security services

in advance. If everyone in the company can work as one tofrom a multidisciplinary perspective of security.

make steady progress step by step, I expect that the vision of
the “new ALSOK” will emerge going forward. Thank you foryour time and valuable opinion today.

06

ALSOK’s History of Value Creation
Since its foundation, ALSOK has consistently endeavored to protect the safety and security of society.
Throughout its history of over half a century, ALSOK has pursued security service technologies, service quality,and personnel training, and has taken them as its strengths. We will continue to take on advanced challenges
and demonstrate originality to help resolve social issues.

July 1965

Foundation of Sohgo Security
Services Co., Ltd. at 2-20
Uchisaiwaicho, Chiyoda-ku,
Tokyo with a capital of ¥25
million and the main businesspurpose of providing contract
security services

October 1997

Developed and launched Cash Deposit
Machine On-Line System, which facilitates
the movements of cash (sales proceeds
and change) and reduces related staff andequipment costs

September 1967

Developed and launched SOK
Guard System® in electronic
security services (currently
ALSOK Guard System) for
corporate clients

December 2008

Developed and launched ALSOKHome Security α with enhanced
security and convenience featuresdesigned from the customer’s
perspective, such as standard
internet security services

April 1998

Developed and launched SOK Home
Security system featuring convenientfunctions for daily life, including ﬁrst aid
information, home banking, and healthconsultation, in addition to crime anddisaster prevention security functions

January 1975

Developed and launched
the AMAND SYSTEM® forautomated managementof ATMs

March 2011

Responded to the Great East Japan
Earthquake

April 1988

Developed and launched TAKURUS®
in electronic security services forindividual customers

January 1995

October 2012

October 2002

Responded to the Great
Hanshin-Awaji Earthquake

Listed stock on the ﬁrst section of theTokyo Stock Exchange

Launched new HOME ALSOK
brand of services for individual users¥181.2 billion

Net Sales¥120.1 billion■ Net Sales of Security Services■ Net Sales of Services Other Than Security Services¥0.15 billion ¥0.7 billion
1966

1971

¥20.3 billion¥40.1 billion

1976¥67.9 billion

1981

1965– Founding Era
Major M&A
Activities

07¥153.9 billion

1986

1991

1996

1985– Building Up and Maintaining Era

February 2011 Japan Facilio Co., Ltd.
April
2014 ALSOK Souei Co., Ltd.

Nippon Building Maintenance Co., Ltd.

October 2014 HCM Corporation

2001

1999–

February 2015 ALSOK Care & Support Co., Ltd.
May
2016 Wisnet Co., Ltd.
November 2016 PT. ALSOK BASS Indonesia Security Services
December 2016 ALSOK Vietnam Security Services Joint Stock Company

TOPICS (July 2019–July 2020)
February 2020

July 2020

Renewed security systems
for corporate clients
Started the provision of
ALSOK-G7, which provides
image monitoring services asa standard feature

Launched renewed
HOME ALSOKMIMAMORI SUPPORT®
service to watch overMarch 2020
Concluded a capital and business alliance agreementwith Mitsubishi Corporation concerning facility
management business¥460.1 billion

April 2020
Acquired shares of Life Holdings Co., Ltd.

April 2020
Launched renewedmobile watching oversecurity terminal
MAMOLOOK¥279.2 billion¥248.3 billion

2003 (Stock listing)

2006

2011

Second Founding Era

February 2017 ALSOK SHOJITSU SECURITY SERVICE CO., LTD.
April
2017 ALSOK-TW East Japan Co., Ltd.
July
2017 ALSOK KANTO DELIVERY CO., LTD.
April
2018 ALSOK Myanmar Security Services Co., Ltd.

20162020 (FY)

2010– Third Founding Era
June2018 Care Plus Co., Ltd.
January 2019 SOHGO KANZAI Co., Ltd. Health Support Co., Ltd.
May
2019 Keihanshin Security Services Co., Ltd.
April
2020 Life Holdings Co., Ltd.

08

Financial Highlights

Net Sales

Ordinary Income¥460.1 billion¥38.8 billion

Up 3.7% YOY

Up 14.8% YOY(Billionsof yen)480¥460.1billion(Billionsof yen)
40

360

30

240

20

120

10

0

¥38.8

billion

0

2016

2017

2018

2019

(FY)

2020

Ordinary Income Margin

2016

2019

(FY)

2020

10.1%

ROE

percentage

2018

Total Net Assets/ROE

8.5%

Up 0.9 point2017

Up 0.2 point

percentage

YOY

YOY

■ Total Net Assets(Billionsof yen)

(%)
12.0

(%)

¥270.4 billion15.0

300

8.5%

9.0

250

12.0

10.1%

200
6.0

ROE

9.0

150
6.0
100

3.0

3.0

50
0

0

2016

2017

2018

2019

2020

Total Assets/ROA

ROA

percentage

2017

2018

2019

2020

0
(As ofMarch 31)

Profit Attributable to Owners of Parent

9.3%

Up 0.9 point

2016

(FY)

¥24.1 billion
YOY■ Total Assets(Billionsof yen)500

ROA¥428.7

400

(%)

12.0

billion

9.0

9.3%

300

Up 8.5% YOY(Billionsof yen)¥24.1 billion

25
20
15

6.0
200

10
3.0

100
0

2016

09

2017

2018

2019

2020

0
(As ofMarch 31)

5
0

2016

2017

2018

2019

2020

(FY)

SocialEnvironmental

Non-Financial Highlights

CO2 Emissions Volume

Fuel Usage

Electricity Consumption

72,621

16,457

63,208(Group)

t-CO2

(Down

4.3% YOY)

Number of Employees(Consolidated)

37,902(Group)kl(Down

2.9% YOY)

Female Employees(Consolidated)

5,017

Up

4.4% YOY(Group)

MWh

(Down

2.5% YOY)

Average Number of Years ofContinuous Service by Gender(Non-Consolidated)

Male Employees

Female Employees

MaleFemale17.3 years15.4 years
Up

0.3 yearYOYUp

0.4 year
YOY(Non-Consolidated)

1,181

GovernanceUp

0.8% YOY

Number of Directors
and Audit & Supervisory
Board Members

16

Directors 12(of whom 4 are outside directors)

Number of Group
Companies That Used
the Internal Reporting
System73 companies

Audit & Supervisory Board Members 4(of whom 3 are outside Audit & Supervisory Board members)

10The ALSOK Group’s Business Operations

Business Environment
In the security services industry, there was an increase in
the number of security contract suspensions and pricereductions due to the cancellation of various events andthe closure of stores and other facilities as a result of the
COVID-19 pandemic. On the other hand, new business
opportunities are arising to provide services to create
the new normal, including supporting customers in
implementing infection prevention measures based on
industry-specific guidelines. Since the resumption ofoperations following the lifting of the state of emergency
declaration, the reactivation of suspended contracts has
started.
In such a situation, as a business operator engaging
in services concerning the safety and security of society(Security Services, General Property Management and Fire
Protection Services, and Long-Term Care Services), the
ALSOK Group has continued the provision of services
properly, paying attention to, among other, strengthening
customer contact on a non-contact basis. As set forth in
the Medium-Term Management Plan Grand Design 2020,
ALSOK continues to work to evolve and deepen security
and related services to meet the increasingly diverse andsophisticated safety and security needs of each customer
and society, aiming to become an integrated safety andsecurity solutions provider to support the safety andsecurity of customers and society.

Summary of Japanese Security Services Industry (as of December 31, 2019)

Number of Security
Services Companies

9,900

Approx.

companies

Total Net Sales
Approx.

¥3.5

trillion

Number of Security Guards
Approx.

570,000(of whom 37,000 are females)

Number of Reported Cases of Crimes and Buildings Introducing
Electronic Security Services(Cases)3,118,034

3,500,000

3,000,000

2,500,000

2,000,000

1,500,000

748,559

1,000,000

500,000

57,808

0
2009

2010

2011

2012

2013

2014

2015

2016

■ Number of reported cases ■ Cases of intrusion and theft among theof crimes (Total)

number of reported cases of crimes

■

2017

2018

2019 (Year)

Buildings introducing electronic
security services

Sources:“The White Paper on Police, 2020,” “Crime statistics materials for January to December 2019,”“Overview of the Security Industry in 2019,” National Police Agency

11Security Services
Electronic Security Services(Billions of yen)
200

Sales
Composition

Net Sales¥175.5 0.0

Up

38.2%

Stationed Security Services

100

Up

25.4%

% YOY

150

Transportation Security Services

14.3%

% YOY

billion

2018

2019

15.1%

% YOY

¥65.6

Long-Term Care Services

2018

2019

2020

¥69.2

75

(FY)

billion

50

2018

2019

30

Sales
Composition

6.1%

2020

¥28.1

(Billions of yen)

¥28.1 5.7

billion

50

0

Up

(FY)

25

billionNet Sales

2020(Billions of yen)
100

Sales
Composition￥69.2 10.1

billion25

General Property Management andFire Protection Services
Up¥116.975

0Net Sales(FY)(Billions of yen)
100

Sales
Composition¥65.6 5.4

2020

100

0

Up

2019

50

billionNet Sales

2018(Billions of yen)
200

Sales
Composition¥116.9 4.5billion

150

0

Net Salesbillion50% YOY

billion¥175.5(FY)

billion

20

10

% YOY
0

Other Services

2018

2019

2020

(FY)

(Billions of yen)
6

Sales
Composition

Net Sales¥4.6

billionUp

7.9% YOY

1.0%

￥4.6

billion

4

2

0

2018

2019

2020

(FY)

12

The ALSOK Group’s Business Operations

Security Services
Electronic Security Services
For corporate customers, we are promoting the sales of ALSOK-G7 (read as “ALSOK
G-seven”), which includes video-based image monitoring service that uses image analysis
technology. We have also started to provide ALSOK Ventilation-Facilitating Solution, which isa service deigned to help the improvement of a closed space by ventilation for the purposeof controlling the spread of COVID-19. In this service, an environmental sensor to measurecarbon dioxide (CO2) concentration is added to ALSOK-G7, enabling emails to be sent tostore managers, employees, and others to encourage ventilation and ventilation fans andother equipment to be automatically controlled.
For individual customers, we provide, among other services, Home Security Basic, which
is an easy-to-install standard model in ALSOK’s home security lineup. We also renewed ourmobile watching over security service MAMOLOOK to enhance its telephone function, which
is a daily communication tool, in addition to the current security functions. Furthermore, westarted to provide renewed HOME ALSOK MIMAMORI SUPPORT®, which offers a wide
variety of options that contribute to the enhancement of community-based integrated care,including evacuation support in the time of disaster and early detection of wandering alone.

Stationed Security Services
While orders received for temporary security services
decreased as we have been affected by the cancellation ofvarious events due to COVID-19, we are working to win
more new orders for long-term contracts and to improve
profitability.
As services to realize efficiency improvement and laborsaving in security services, we offer, for example, ALSOK
Staff Cooperation System, which enables smooth cooperation
among staff members, an automated patrolling security robot
REBORG®-Z, and ALSOK Traffic Control System.

Transportation Security Services
The number of orders received from financial institutions for the managementof ATMs installed inside and outside their branch offices based on theiroutsourcing needs continued to increase, and the number of ATMs under
our management reached approximately 73,000. We are also strengthening
outsourcing services for financial institutions’ administrative centers.
For corporations, demand for the Cash Deposit and Dispenser Machine
On-Line System is strong as a service to contribute to the rationalization of
cash management and to support work-style reforms. The number ofcontracts increased to approximately 25,000 units.
To respond to the cashless era, we are also providing ALSOK Multi-QR
Payment Solution to accommodate multiple QR Code payment methods. To
tap the increasing demand for cashless payment, we will work to further
enhance our services.

13

General Property Management and Fire Protection Services
In General Property Management and Fire Protection Services, in addition tocompleting major construction projects, we are working to provide comprehensive
facility management services, which encompass the maintenance, management, andoperation of various facilities, based on increased coordination between Group
companies, and receiving orders steadily for comprehensive building management
services, cleaning services, etc.
In March 2020, we reached an agreement to form a capital and business alliance with
Mitsubishi Corporation in the area of facility management services both in Japan andoverseas. This alliance is intended to provide comprehensive safety and security services
including security and BCP as well as smart building and facility services through energy
and labor saving in Japan and Southeast Asia, by combing Mitsubishi Corporation’scomprehensive capabilities and overseas network with the ALSOK Group’s operating
capabilities and security service know-how in the area of facility management.
The ALSOK Group will strengthen coordination with the Group to provide
comprehensive facility management services.

Long-Term Care Services
The ALSOK Group has put in place a system to be able to meet diverse customer needs by providing in-facility services such asgroup homes and fee-based long-term care facilities dealing with dementia, in-home services such as home-visit nursing careand day care services, and visiting massage services. In addition, Life Co., Ltd., which operates long-term care facilities in theTokyo metropolitan area including Tokyo and Kanagawa, joined the ALSOK Group in April 2020.
In October 2020, we carried out a merger of ALSOK Care Co.,
Ltd. (formerly Wisnet Co., Ltd.), HCM Corporation, the long-term careservices division of ALSOK Care & Support Co., Ltd., and Antei Care
Co., Ltd. for business integration and the fortification of operating
foundation. The ALSOK Group will continue to expand its businessdomain further to encompass a wide range of in-facility and in-homecare services and work to provide high-quality care services bycollaborating with the community to satisfy as many customers as
possible. We will strive to enhance our service lineup in collaboration withsecurity services so that our long-term care services can live up to the
expectations of users and their family members and gain a high degree oftrust by them for safety and security as those provided by a security
services company.

Other Services
Working from home is rapidly becoming a common practice due tothe spread of COVID-19. To support the realization of a safe andsecure teleworking environment, we have started to provide theSoliton SecureDesktop service, among other services. We also
renewed HOME ALSOK MIMAMORI SUPPORT®, which is a service
to watch over senior citizens by combining emergency on-site
support and daily health consultation. It is equipped with the sensing
function of a small watching over device MIMAMORI Tag, enabling
the confirmation of location history information. In addition, it is also
equipped with functions to watch over senior citizens to prevent
them from having a heat stroke and to support evacuation in thetime of a disaster. Through these services, we are working to realize
disaster responses and community-based integrated care incoordination with local governments.

14

Excellent
Human
Resources

That Embody the ALSOK Philosophy
As ALSOK is in the business of providing value by protecting people
and society, the most important capital is its human resources.
For this reason, we need to develop human resources that can
put ALSOK’s philosophy of “arigato no kokoro” and “bushi noseishin” into their actual actions. ALSOK is also focusing on
developing experts who can propose optimal security solutions as
security service professionals.

Number of Staff Dispatched toJapanese Embassies, Consulates, etc.
Overseas as Security Staff Members

Over

790

on a cumulative
basis

Number of Female
Employees

5,017(13.2% of all employees)

15

Number of
Security Planners

722

Number of Security
Consultants

34

With its strengths that
contribute to the safety andsecurity of customers andsociety, ALSOK will work tocreate new value.

Organizational
Capabilities
To Ensure Safety and Security

With the industry’s leading service network, ALSOK provides asense of security to society and customers and demonstrates themobility to arrive on the scene of any emergency quickly.
We have also realized solutions that capitalize on group synergy.
For example, we provide watch over services to the ALSOK Group’s
long-term care facilities, drawing on our know-how of security
services.

Depots LocatedNationwide

Approx.

Gurugram
YangonSeoul
Shanghai
Hanoi
TaiwanHai Phong

Chennai Bangkok Ho Chi Minh City

2,400
9countries
Jakarta

Overseas
Operations

Number of
Employees(Consolidated)

37,902

Number of Company Vehicles

10,531(including motorcycles and bicycles)

Trust

Built upon Performance andResults

Based on the high reputation of our performance records
and skills as a leading security services company in Japan,
ALSOK has won a large number of security services
contracts both in Japan and overseas. ALSOK has also
been in charge of security operations at numerous
large-scale events.
In addition, to be a company trusted by both local
communities and society at large, ALSOK actively engages
in CSR and ESG activities.

Time to Arrive on the Scene

16 minutes on averageElectronic Security Services Contracts

973,066(533,733 for corporate clients and439,333 for individual users*)* Approx. 1,210,000 housing units covered when including
contracts with housing complexes

Annual Amount of
Cash Handled

Approx.

Number of ALSOK ANSHINKYOSHITSU® Classes Held¥457 trillion 51,024

on acumulative
basis
16

ALSOK’s Value-Creation Model

Aiming to Become an Integrated Safety andSecurity Solutions Provider to Support the Safety
and Security of Customers and Society
Risks Surrounding
ALSOK● Spread of an
infectious
disease● Occurrence oflarge-scaledisasters● Securing andfostering humanresources

Value Creation

Management
Philosophy

Based on two core“arigato no kokoro”(a feeling of gratefulness and gratitude)

Operating Foundations
and ALSOK’s Strengths

Business Domain
Services Provided● Changes intechnologicalenvironment● Reputationalrisk

Human Resources

Electronic
Security Services

p.13

Stationed
Security Services

p.13

Medium-Term
Management Plan

Medium-Term
Management Plan

Grand Design
2017

Grand
Design2020(Fiscal 2016–2018)● Information
asset
management

we devote ourselves toof our customers

1. Expansion of consolidated
net sales
2. Transition to highly
profitable structure(Fiscal 2019‒2021)

E : Environmental

S : Social
p.27–36

17

The ALSOK Group has continued to provide security services of impeccable quality for more than 50 years since
its establishment. The Group’s human resources, organizational capabilities, and the trust recognized by customers
and society are its greatest strengths. Although conditions are changing rapidly both inside and outside of theCompany, we remain committed to creating new value and achieving sustainable growth for “protecting” the safety
and security of customers and society while simultaneously achieving sustainable growth. By accomplishing thesegoals, we will meet the expectations of all stakeholders.

StrategyLong-Term Targets

principles exemplified byand“bushi no seishin”,

Becoming an
Integrated Safety
and Security
Solutions Provider(a samurai spirit)

protecting the safety and security
and of society as a whole.

Organizational
Capabilities

Trust
p.15–16

Transportation
Security Services

p.13

Long-Term
Care Servicesp
p.14

General Property Management
and Fire Protection Services

p.14

Other Services

p.14

Ⅰ. Enhancement and expansionof security services, etc., in
response to diversifying needsof customers
Ⅱ. Sophistication of security modeland improvement in productivity
Ⅲ. Business expansion in theelderly market
Ⅳ. Stable securement and active
promotion of human resources
Ⅴ. Responses to the Olympic andParalympic Games Tokyo 2020

Further“evolution” and“deepening”
Realization ofsustainablegrowth1

Net Sales¥

Incometrillion¥100

billionG : Governancep.37–4418

Special
FeatureALSOK’s New Service Lineup
The ALSOK Group continues to carry on the business of providing services that are essential to the stabilityof both businesses and individuals under the COVID-19 crisis. At the same time, we actively provide products
and services to support measures to protect against COVID-19.

1 New Services Leveraging ALSOK-G7
ALSOK-G7
Basic Configuration
Intrusion

Fire

Emergency
Example of a store image

非常
Confirmation of live images
Image sensors with high-performance microphones allow
customers to view live images of stores and other locations
from their smartphones or computers, day or night.

Provide an optimal plan that meets customer needs
based on plentiful optional services

Image sensor
Control device

Respond to new needs
Ventilation-Facilitating Solution

New Optional Services

Contribute to the effective control of COVID-19
Detect any rise in CO2 concentration
Ventilation facilitation through interconnections with ALSOK-G7
Anomaly detection
Environmental sensor

Linkage
Ventilation system

Entrance/exit image monitoring
Simplified facility control

SignalALSOK-G7

Store manager/Building
maintenance staff

Environmental sensor

Tablet display

Notification

Controllable

19

Check the state of thestore online via ALSOK-G7

Storing images on the cloudOver Service Leveraging HOME ALSOK
2 Community-Based Watching®
MIMAMORI SUPPORTHOME ALSOK MIMAMORI SUPPORT®
Basic Configuration Emergency

Consultation

Fire[New functions]・ Coordination with MIMAMORI Tags
・ Watching out for signs of heat stroke・ Reading aloud an emergency warning email

Disaster countermeasures in cooperation with local governments andvarious services based on the keywordof “community-based integrated care”

Controller

Respond to new needs
Construction of Community-Based
Watching Over Networking

Use at the Time of Disaster[Evacuation support][Watching over senior citizens
with dementia]
・Early detection of senior citizens withdementia who are wandering about→Promote the realization of acommunity-based symbiotic
society・Notify family members of the startand completion of evacuation
・Find the location of persons
requiring rescue
・Aggregate the number of
evacuees by municipality→Realize efficiency
improvement in rescue and counting work

3 Other Services

MIMAMORI Tags
monitor the
movements of users

Internal systems Office(1) Teleworking Solutions
Protect the teleworking environment from cyberattacks

Targeted attackHome● Wi-Fi routers for home use with cybersecurity functions

Internet

Malware infection

Information
leak

Unauthorized access

SECURIE● Remote desktop service to enable secure connection

Cyberattack example

Soliton SecureDesktop service(2) COVID-19 Tests
Three types of COVID-19 tests
including PCR tests are now
available through MBIC Life Co., Ltd.

● PCR test
● Antigen test kit● Swab test
Specimencollection kit

Material for sending specimen back20

Special
FeatureWhat ALSOK Can Do for Cyberspace
Safety and Security
This special feature introduces ALSOK’s services in the area of information security to counteract
threats in cyberspace.

ALSOK’s Information

Identification of any vulnerability that could be atarget of cyberattacks

Security Diagnosis

Automatic detection of website tampering

Website Tampering
Detection Service

Monitoring of customer’s network by Information
Security Monitoring Center

Network Monitoring

Internet

Cloud

Gateway Security
Entrance Security
MeasuresExit Security
Measures

IT asset management service augmented by ALSOK’s
unique operation support service

PC Management Service
High-speed, low-cost anti-virus software

MR-EP

Cyber incident reporting support for regional
financial institutions

Incident Consultation Desk Service

Endpoint Security
IT Asset
Management

Operation
Monitoring

Anti-Malware
MeasuresDevice Control

Initial response drill using a mock targeted email attack

Targeted Email Attack Response
Drill Service
Participation in External Organizations
Participate in cybersecurity
expert organizations and thelike to monitor the latest casesand developments

21

Development of framework
Lecture Service

Training Service

Incident Response Support

ALSOK’s Information Security Services
ALSOK launched Information Security Services in 2008 to protect customers’ valuable information in addition topeople, goods, and money that we had protected until then. Since then, in response to constant changes in the
ICT environment, including the spread of the IoT and ICT education and teleworking as a result of the COVID-19
crisis, and threats in cyberspace, we have been providing a variety of solutions to both businesses and home.
On the back of the further evolution of digital society, cybersecurity needs are increasing more and more, and
ALSOK will continue to enhance its cybersecurity service lineup.

Security Services

Protect all home appliances connected to the internet

Home Cybersecurity
Teleworking

SECURIE

IoT Home
Appliances

Application program that does not require the introductionof specialized equipment or installation work

Soliton SecureDesktop Service

Operation and Monitoring
The Information Security Services Monitoring Center isdedicated to cybersecurity leveraging ALSOK’s monitoringknow-how developed in its security services.
Cybersecurity experts will monitor any incidents, such as
cyberattacks, computer viruses, unauthorized access, andother risks 24 hours a day, 365 days a year. Upon detecting
any incident, they will respond quickly to support customers.

Information Security Services
Monitoring Center

ExpertDispatching
Dispatch staff who
have experience insecondment toexternal expert organizations
and use their knowledge

Using exchange programs such as private–public exchange
programs, ALSOK has dispatched its staff to cybersecurityrelated organizations, including The Center for Financial
Industry Information Systems (FISC) and National Center ofIncident Readiness and Strategy for Cybersecurity (NISC), todevelop experts in this area. Leveraging the know-how andknowledge that we obtained in this manner, we will provide
comprehensive advice to our customers.

22

To Realize a Sustainable Society

The Sustainable Development Goals (SDGs), which were adopted by the United Nations summit
in September 2015, are international goals consisting of 17 goals and 169 targets to realize
a sustainable world and pledging that “no one will be left behind” in the world.
These developments in international society are aligned with ALSOK’s management philosophy
that it will make best efforts to protect the safety and security of customers and society under thetwo principles of “arigato no kokoro” (a feeling of gratefulness and gratitude) and “bushi no seishin”(a samurai spirit) that the ALSOK Group has upheld since its foundation as its basic management spirit.
As a company responsible for a critical component of social infrastructure, we will ensure thesafety and security of people who live in society through one of the largest networks in Japan.
Leveraging its strengths and through its CSR initiatives, the ALSOK Group will contribute to therealization of a sustainable society and the achievement of the SDGs by providing various services
related to safety and security based on its founding spirit.

23

The SDGs to Which ALSOK Has Made Major Contributions
SDGs

Social Issues

Ensure healthy lives andpromote the well-being
for all at all ages

・ Declining birth rates and aging
population
・ Long-term care, older adults
caring for their elderly parents
・ Lack of medical and long-termcare professionals
・ Ensuring food safety
・ Promotion of life–work balance・ Correction of long working
hours

Secure quality education
to all in an inclusive andfair manner, promoting
lifelong learning
opportunities

Make cities and humansettlements inclusive,
safe, resilient andsustainable

・Loss of educational opportunity
due to the spread of infectious
disease, poverty, etc.
・Crimes targeting seniorcitizens, women, and children
・Prevention of special-casescams and the like・Promotion of diversity
・Respect for human rights

・Risk of natural disasters, suchas earthquakes and typhoons
・Responses to crimes
and terrorism
・Labor shortage due to decreases
in working-age population
・Aging of existing social
infrastructure
・Leakage of technological andinformation assets
・Responses to people who lackaccess to transportation likethose living in a depopulated area

Main Initiatives

Targets

Results
・ Watching over services
・ ALSOK’s long-term care services
・ Enhancement of health and welfare
benefit plans
・ Promotion of health management

Number of municipalities collaborating under
the Emergency Reporting System …………493
Employees who have completed first-aid
training……………… Aggregate total of 19,553
Cumulative AED sales……Approx. 191,700 units

・Various crime preventions seminars
・Accepting educational visits of students
・Sports support activities
・Training on barrier-free mind

Number of children who took ALSOK ANSHINKYOSHITSU® classes………
Approx. 1.6 million on a cumulative basis
Number of correspondence education
programs provided…………………210 courses
Certified Health and Productivity Management
Outstanding Organization……4 years in a row
・Intrusion, fire, and facility monitoring service,image monitoring service
・Monitoring of river flooding and inundation
・Introduction of AI/IoT, and security robots/drones
・Business continuity plan (BCP) solution services
・Lifesaving………………………………35 times
・Fire fighting…………………………… 54 times
・Assisting criminal arrest………………68 times
・Preventing special-case scams and the like…………………………………………35 times

Ensure inclusive
and equitable
quality educationand promote
lifelong learning
opportunities
for all

Develop the next
generation of
employees andsecure humanresources bycreating quality
educational
opportunities

Realize social
infrastructure
for sustainable
cities andcommunities(Fiscal 2020)

COLUMN
Raising Awareness toward Achieving the SDGs
To realize a sustainable society, ALSOK is conducting activities to inform
employees of the approach and the importance of SDG initiatives. For
example, we invited lecturers from outside to give ESG lectures tomanagement. Our officers in charge also gave lectures on CSR and
ALSOK’s initiatives to all employees using a video streaming method.
Research result presentation meeting held at the Security
At a research result presentation meeting held in February 2020, we
Science Instituteshared a plan of research themes that will lead to the future, identifying social issues that we are facing and taking into
consideration various technical seeds to achieve the SDGs. This is based on the idea that initiatives to realize asustainable society will also lead to ALSOK’s sustainable growth.

24

CSR Management
To ALSOK, CSR entails remaining ever mindful of the expectations of customers and society at large
and exercising its management philosophy based on the principles of “arigato no kokoro,” anever-present feeling of gratefulness and gratitude, and “bushi no seishin,” a strong and noble samurai
spirit that emphasizes toughness, fairness, and generosity as well as teamwork and unity.
Through our CSR activities, we will contribute to the achievement of the SDGs.

ALSOK’s CSR Policy
Since its founding in July 1965, the Company has continued to develop its
security services business based on its fundamental spirit, which is definedby the two principles set out in its management philosophy of “arigato no
Management
kokoro” and “bushi no seishin,” and with a strong sense of commitment toPhilosophy
protecting the safety and security of customers and society.
We believe that CSR entails protecting the safety and security of societyManagement
Policiesby contributing to the resolution of the issues faced by customers andsociety through our business activities. To facilitate this undertaking,
ALSOK has established its management policies and code of conduct
Code of Conduct
as well as a framework of internal regulations and rules. Furthermore, theCompany has outlined issues to address in its CSR activities, giving a clear
structure to its CSR ideals. The management policies set out the principles
of how the ALSOK Group should engage with its stakeholders. The code ofInternal Regulations and Rules
conduct defines how all members of the Company, including employees
and executive officers, should act in carrying out their daily businessactivities. The Company has also established various internal regulations and rules related to specific issues. Based on theseguidelines, we are incorporating CSR activities into all areas of our business operations.
In 2014, we defined four material CSR themes as specific pillars of our CSR activity policy to pursue ongoing improvements
in corporate value while developing our business.
We also facilitate CSR activities to resolve social issues from a global perspective through verification of compliance with
the SDGs, which were adopted by the United Nations with the aim of resolving some of the major problems affecting the world.

Initiatives for Realizing Sustainable Improvement in Corporate Value
Material Theme

Material Theme

Material Theme

Material Theme

Providing Trustworthy
Security Services

ALSOK is expected to maintain high levels of social trust while acting in ahighly ethical and disciplined manner. We therefore position compliance andbusiness continuity as management issues of extreme importance, and are
advancing various initiatives in relation to these matters.

Providing Products andServices That Help Resolve
Social Issues

ALSOK offers a multifaceted lineup of services that help resolve issues facedby customers and society through an accurate understanding of changes
in the natural environment and social trends by leveraging its security
services expertise.

Cultivating Human Resources
and Building a Comfortable
Workplace Environment

ALSOK is constantly working to improve the workplace environment to enablehuman resources, which are the base of sustainable growth for the Company,
to fully exercise their talents through the enhancement of training systems,
active support for career development, and the promotion of diversity.

Contributing to Local
Communities throughActive Communication

To give form to “arigato no kokoro” (a feeling of gratefulness and gratitude)—part of ALSOK’s fundamental spirit—the Company acts as a good corporate
citizen, diligently working to contribute to the resolution of the various issues
faced by the communities it serves.

Consideration for the
Global Environment

25

Understanding that environmental issues affect all of humanity, ALSOK is working
to reduce the environmental impact of its operations and has set goals for the
reduction of CO2 emissions and other environmental indicators while engaging
in initiatives to address climate change and preserve the natural environment.
The Company shapes such initiatives based on the United Nations Framework
Convention on Climate Change and other global consensus and targets.

CSR Promotion Framework
The ALSOK CSR Office takes the initiative in strengthening the Company’s CSR promotion framework. In addition to our
in-house quarterly ALSOK CSR Newsletter summarizing the latest information on CSR and ESG, we provide employees withe-learning programs and hold ESG seminars given by external lecturers for general managers of each office to cultivate a
CSR-based mindset in all employees.
Furthermore, we conduct CSR activity surveys of employees at the Head Office, branches, and all Group companies once
each year to collect quantitative and qualitative information on the state of ESG matters within the Group. Since the fiscal year
ended March 31, 2015, the Company has published ALSOK Reports, a series of yearly reports that compile, in an easy-tounderstand manner, both financial and non-financial information on the ALSOK Group’s activities to provide a more integrated
view of the link between the Group’s business activities and CSR activities. Meanwhile, we provide more robust disclosure of
information related to CSR activities and ESG initiatives through our corporate website.
As a result of these efforts, ALSOK has been recognized by external institutions as a company that exercises its social
responsibility from an ESG perspective. Such institutions have thus selected the Company for inclusion in various investment indexes.

ALSOK has been included in the FTSE4Good

ALSOK has been included in the FTSE

ALSOK has been included in the MSCI Japan ESG Select Leaders Index,

Index series, a socially responsible

Blossom Japan Index, an ESG investment

an ESG investment index, for four consecutive years.

investment index, for 13 consecutive years.

index, for four consecutive years.

Stakeholder Engagement
The ALSOK Group is conducting its business activities in relation with diverse stakeholders including customers, employees,
business partners, shareholders/investors, local communities, and the global society. In reference to, among others, ISO 26000,
the international standard for social responsibility, we listen diligently to various requests and expectations obtained from
communications with stakeholders and reflect them in our business activities. We also work with each sector in the local
community, such as NPOs and NGOs, on an ongoing basis, aiming to contribute more effectively to the resolution of social issues.

・Holding of crime prevention classes
and courses
・Art, culture, and sports promotion
・Disaster recovery and volunteering
support・Environmental activities, protectionof biodiversity, etc.

・General Shareholders’ Meetings,
results briefings
・Issuance of integrated reports,
securities reports, etc.
・Disclosure of business and other risks
・Investor meetings, etc.

・ Promotion and enhancement ofcustomer satisfaction
・ Quality and safety promotion initiatives
・ Provision of safety and security services
・ Dissemination of information throughwebsites, SNS, etc.

Customers

Local Communities
and the Global
Society

Shareholders/
Investors

Employees

ALSOK

Business
Partners

・Enhancement of the education system
・Establishment of the internal reporting system
・Enhancement of health and welfare
benefit plans
・Promotion of health management, etc.

・Fair business practices
・Green procurement
・Supply chain management
・Information security management
system operation, etc.

・ THE INCLUSION OF SOHGO SECURITY SERVICES CO., LTD. IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOTCONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF SOHGO SECURITY SERVICES CO., LTD. BY MSCI OR ANY OF ITS AFFILIATES. MSCI AND THE MSCI INDEX NAMESAND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.

26

E: Environmental

Consideration for the Global Environment
Understanding that environmental issues affect all of humanity, ALSOK is working to prevent
environmental pollution (i.e., prevention and reduction of pollutant emissions) and to reduce theenvironmental load, setting goals for the reduction of CO2 emissions and other environmental
indicators, and is also grappling with climate change issues and conducting natural environment
protection activities. The Company shapes such initiatives based on the United Nations Framework
Convention on Climate Change and other global consensus and targets.

■ALSOK’s Responses to Climate Change
In response to climate change and other environmental issues, ALSOK works on various initiatives and provides various goods
and services concerning such issues as mitigation and adaptation measures against climate change; the preservation of water,
marine, and forest resources; responses to a recycling society; pollution prevention and waste management; and the preservationof biodiversity, from the perspectives of both risks and opportunities, aiming to resolve them and realize a sustainable society (forspecific examples, please see the following page). Other activities include providing answers to CDP Climate Change
Questionnaires on an ongoing basis (rated “C” last year) and the endorsement of and the participation in a domestic initiative on
climate change (Japan Climate Initiative (JCI)). In addition, in January 2020 we became a corporate member of Global
Environmental Action (GEA), an NGO that was formed for the purpose of contributing to the resolution of global environmental
issues and sustainable development, and have donated ¥3 million to the NGO for its business activity expenses.
CO2 Emissions Reduction Targets (Total Emissions and Emissions per Sales)

Short-, Medium-, and Long-Term Goals

and New Short-Term Targets and Performance

for CO2 Emission Reduction（t-CO2）Through fiscal year
ending March 31, 2021

38,00036,64936,291

Achievedecrease of(each year)

1.4%

year
1.4% each

36,000Fiscal year ending
March 31, 2031

34,23832,8760(From fiscal year ended
March 31, 2014)

0.15

34,000

0.145

2017

■ CO2 Emissions(Non-Consolidated)

2018
■

2019

26%

0.14

0.156

32,000reduction

0.13

By 2050

0.135
2020

Total Emission ■ CO2 Emissions per Sales
Targets(Non-Consolidated)

reduction(From fiscal year ended
March 31, 2014)

2021
■ ■

80%

0.00
(FY)

Per Sales Targets

reduction

TOPIC
Global Increases in Greenhouse
Gas Emissions and Temperature

27

Trend = 0.74 (℃/Century)

Temperature anomalies over 1981–2010 (℃)

In recent years, we have experienced the frequent
occurrence of extreme weather events (abnormal weather),such as heat waves, torrential rains, and droughts, all over
the world. Abnormal weather, such as torrential rain of over
100 mm per hour and extreme heat of over 40℃, has also
been observed in various parts of Japan, having a major
impact on corporate activities and civic life. It is generally
understood that one of the causes of such abnormal
weather is global warming caused by greenhouse gases
such as CO2 emitted from human activities. As the emissionof greenhouse gases continues, global annual averagetemperature is currently higher by roughly 1℃ thanpre-industrialization levels, and it is forecasted that the
average temperature will be higher by 1.5℃ during theperiod from 2030 to 2052 if the current situation continues.

Annual Global Average Temperature Anomalies
1.0

0.5

0.0

-0.5

-1.0

-1.5
1890

1900

1910

1920

1930

1940

1950

1960
year

1970

1980

1990

2000

2010

Source: Japan Meteorological Agency, Annual Anomalies of Global Average Surface
Temperature (1891–2019)2020

Relationship with the SDGs

Measures to Mitigate
Climate Change

Climate Change
Adaptation Measures[Internal Responses][Internal Responses]

・Reduction of CO2
emissions

・BCP responses

・Improvement of fuelefficiency

・ISO 22301,14001, and 9001

・Energy conservation・Heat stroke prevention measures
・Supply chain responses

・ISO 14001[External Responses][External Responses]

・Paperless solutions

・BCP solution services

・Safety measures forhydrogen stations
・Energy-saving products
and services

Preservation of Water, Marine,
and Forest Resources

・Safety confirmation service

・Portable power storage system
・Disaster prevention andemergency supplies

Responses to
Recycling Society[Internal Responses][Internal Responses]

・Water saving (at the time of car wash)

・Use of electronic daily work report・Beach cleaning activities
・Tree planting activities

・The “3Rs” (Reduce, Reuse, andRecycle)[External Responses][External Responses]

・Flood Prevention Act response solutions

・Inspection of mega solar power
generation facilities

・Forest Stewardship Council (FSC)
certification (ALSOK REPORT
Japanese version)・Cash management services

・Volcanic disaster response solutions

Pollution Prevention andWaste Management

・Recycling of small-size home
appliances

・ALSOK Multi-QR Payment Solution

Preservation of
Biodiversity[Internal Responses][Internal Responses]

・Green procurement guidelines

・Tree planting activities

・ISO 14001

・Promotion of green facilities

・Environmentally friendly design

・Local woodland preservation activities[External Responses][External Responses]

・Confidential document collection
and recycling services

・Countermeasures against harmful
birds and animals

・Building management and cleaning services

・Livestock epidemic prevention measures

・Ozone sterilization and deodorizing apparatus

・Endorsement of the Initiative Based on the
Declaration of Biodiversity by Keidanren(Japan Business Federation) (Revised Version)

28

S: Social

Providing Products and Services That Help Resolve Social Issues
ALSOK offers a multifaceted lineup of services that help resolve issues faced by customers andsociety through an accurate understanding of changes in social trends by leveraging its security
services expertise.

Developing Communities Where Everyone Can Live
Safely Leveraging ALSOK’s Strengths

AI/IoT-Powered Security
Services
By combining state-of-the-art systems such as
high-resolution cameras, AI-based behavior
analysis, etc., with its long-standing security
service know-how, ALSOK serves theever-expanding needs for safety and security.

A security guard be
dispatched to the scene

IoT×Long-Term Care/CommunityBased Watching OverThe ALSOK Group leverages its unique know-how
of “protecting” in such services as watching overthose family members who live away, fee-based
long-term care facilities, day care and home-visit
nursing care, and visiting massage.

Product Renewal to Reflect
Customer Feedback
・Adopted colors, button design, and Braille thatare friendly to visual disorders
・Feature functions to detect any rise in room
temperature and send voice messages to warnof it and to send warning emails to other family
members, as measures to prevent heat stroke・Based on the opinion that it is difficult to heardisaster alerts on the radio during heavy rain,
enabled emergency emails sent by municipalities
to be read aloudCash Management Service, ATM
Management Service

29

Security Robots and Drones

The Security Science Institute, an R&D departmentof ALSOK, is working every day on research tocontribute to the sustainable development ofsociety.
For example, it aims to realize such services
as AI to detectsuspicious
behavior andfires andnext-generation
mobility.

We havedeveloped security
robots, AI-powered
fully self-driving
drones, etc., anduse them incoordination withsecurity guards
aiming to provide
more advanced
and efficient
security services.

Facility Management
We support cost
reduction and theenhancement ofasset value ofbuildings byproviding
one-stop services
encompassing
fire inspection,cleaning,
and facility
management.

Security Science Institute’s
Initiatives

Transport Infrastructure Support
Aiming to realize the social implementation ofself-driving, we participated in verification tests forthe remote monitoring of vehicles. We also provide
services to resolve the issue of decrease in themeans of transportation, such as mobile ATM andpost offices.

Virus/Infectious Disease
Control MeasuresRelationship with the SDGs

■Case Examples of Collaboration in the Development of Safe andSecure Communities
Kakogawa City of Hyogo Prefecture is undertaking a smart city project for community-based watching over focusing in particular on
resolving community issues faced by parents of child-bearing age and senior citizens. In this project, ALSOK provides MIMAMORI service.
Using Bluetooth wireless technology, MIMAMORI service automatically pools location information of senior citizens and children
who carry a MIMAMORI Tag as they pass by a smartphone on which the MIMAMORI Tag App is installed or a MIMAMORI Tag
Detector. Parents or other family members can find anytime the location of MIMAMORI Tags under contract. In the Kakogawa City
project, we installed watching over cameras with built-in MIMAMORI Tag Detectors in 1,475 places all over the city and 441 mailmotorcycles and other vehicles for public use. ALSOK is responsible for the operation and the management of those cameras anddetectors. Moreover, we are working on developing solutions to the dementia issue including the development of capabilities tosupport the increasing number of dementia patients and also their families and for the early detection of symptoms. ALSOK is also
participating in verification tests in coordination with Kakogawa City and other companies to develop new services designed to extend
healthy life expectancy.
Verification Test Field (Kakogawa City)MCI Detection Engine

Fixed
Watch over cameras
with built-in detector

Data

1,475 units

IoT devices

Behavior

util

1,475 cameras are
installed throughout
the city

IndoorInformation

tion

Test
subject
Provided by ALSOK

Sleep

iza

Deep Learning
Machine Learning/
Future Prediction

Provided by George and Shaun, Inc.

ta

Mobile

Da

n

tio

liza

uti

Improvement of the functions andeffectiveness assessment of the services ofMild Cognitive Impairment (MCI) detectionengine (jointly developed with NTT West andGeorge and Shaun)

Locations of watching over camerasin Kakogawa City.

In addition to thewatching overcameras, 441
detectors are
installed in mailmotorcycles andother vehicles for
public use.

Benefits of Installing Watching Over Cameras: Testimonial from a Kakogawa City Official in Charge
Kakogawa City has faced community issues of a relatively large number of reported cases of crimes within Hyogo Prefecture and an increasing
number of missing senior citizens who may have dementia. In response to these issues, we installed 1,475 watching over cameras mainly in schoolzones of elementary schools throughout the city in cooperation with ALSOK to focus on securing an environment in which parents of child-bearing
age feel secure to live and on strengthening community-based services to watch over children and senior citizens by the entire community.
Following the installation of watching over cameras, the number of reported cases of crimes decreased significantly from 2,926 in 2017 to 2,025
in 2019. As a result, the percentage of citizens who are satisfied with safety measures such as watching over children and patrolling in the publicawareness survey increased significantly from 51.3% in the fiscal year ended March 31, 2015 to 66.2% in the fiscal year ended March 31, 2020.
We believe that community-based advanced initiatives including the verification tests for early detection of Mild Cognitive Impairment (MCI) using
Bluetooth Low Energy (BLE) tags are important in our efforts to realize a sustainable society and expect them to contribute significantly to the smart
city measures of the city.

Number of Reported Cases of Crimes per 1,000 of the Population
1.2

1.13350.99801.0

August 2017: Start of the installationof watching over cameras
0.9286

0.92890.87830.83380.80690.76710.8
0.75

0.7771

0.78280.74290.75580.4

0.62300.69780.7414
0.66220.79000.76550.8032

0.67

0.6

Kakogawa City
Whole Hyogo
Prefecture

0.72090.7056

0.68350.68910.7012
0.6617
0.63600.63720.5713 0.5858

0.66000.6672
0.6316

0.61240.5683

Kakogawa City
Planning Division, Deputy Chief,
Information Policy Section& Deputy Chief in Charge of ICT
Community Development& Deputy Chief in Charge of
Administration, COVID-19 Life
Support Section

Isao Tada

2017.1 2017.3 2017.5 2017.7 2017.9 2017.11 2018.1 2018.3 2018.5 2018.7 2018.9 2018.11 2019.1 2019.3 2019.5 2019.7 2019.9 2019.11

November 2018: Kakogawa City falls below whole Hyogo Prefecture for the first time30

S: Social

Human Resource Development and Empowerment Initiatives
ALSOK is constantly working to improve the workplace environment to enable human resources,
which are the base of sustainable growth for the Company, to fully exercise their talents through theenhancement of training systems, active support for career development, and the promotion of diversity.

■ Policy Regarding Development of Human Resources
Aiming to develop human resources that embody ALSOK’s philosophy, the ALSOK Group is constantly working to improve its
education and training programs based on the basic understanding that the most significant source of corporate activities ishuman resources.
We promote organizational revitalization and encourage skills development of employees by enhancing correspondence
education programs, incentivizing employees to acquire public certifications, and actively conducting personnel exchanges
within the Group as well as with central government agencies and other companies. Moreover, we also strive to identify anddevelop talents who can play a central role in services other than security services (e.g., long-term care services) by introducing
an internal open application system.

■ New Initiatives

For sustainable growth of acompany, skills developmentof employees is indispensable.
ALSOK is actively promoting
new initiatives, such as
interviews with new employees
to eliminate their anxieties,
dispatching employees toprofessional graduate schools,
and the enhancement ofcorrespondence education
programs.

Correspondence Education Programs

210(Up 90 courses YOY)

Supervisor position

Front-line position

coursesavailable

Manager position

Front-line position
Supervisor position
Manager position
Training
・Onboarding
・2nd year and 3rd year training by job type ・Manager training
according
to rank ・Basic training by job type ・Product-specific technical training ・Training for senior management candidates
・OJT/internship・Training for developing trainers for various internal qualifications

Training for those who have been promoted
Ongoing
Self-enlightenment courses, correspondence education (business skills, management skills, language skills, etc.)
training
Encouraging staff to obtain public certifications

Management● Introduction of a “job matching system” through which employees
can apply for a desired position● Dispatching employees to professional graduate schools (MBA)● Introduction of e-learning as part of security guard training● One-on-one interviews with new employees■ Achievements of Our Human Resource Development Initiatives
Training and Education
Hours per Employee

22.1

hours
on average(Persons)
3,000

Number of Training Classes Planned
187 per year
and Offered by the Head Office
Changes Following the Introduction of e-Learning(compared with fiscal 2019)
Number of Training Class Attendees Hours Spent for In-Person Group Training

500 -457.7

+

hours

By making part of training contents available in an e-learning format, wewere able to reduce the time spent for in-person group training andrelated travel time. As a result, we were able to increase the number oftraining classes that employees can take at their convenience, as well as
the number of employees who took training classes.

31

Changes in the Number of Training Class
Attendees and Hours Spent for In-Person
Group Training(Hours)
1,500

2,000

1,000

1,000

500

0

Fiscal 2019

Fiscal 2020

■ Number of training class attendees
ー■ー Hours spent for in-person group training0Relationship with the SDGs

■ Diversity Topics● Initiatives to Promote Barrier-Free Minds
By obligating stationed security/electronic security service team members
to acquire assistance skills and providing training on barrier-free minds tothose employees who are in charge of security operations at large-scale
events, ALSOK ensures that its employees can behave appropriately ina manner considerate to the diversity in society.

● Initiatives Overseas
By adopting local-style food and prayer in company events, we deepen our
understanding of local culture and a sense of solidarity among employees.
In addition, we started an excellent sales staff award system overseas in thesame manner as in Japan, under which employees compete and encourage
each other regardless of their nationality.

ALSOK India expatriates and local staff praying for the developmentof the Company■ Work-style Reform/
Work–Life Balance● Enhancement of Health and Welfare Benefit Plans

We opened web portal “ALSOK Benefit.” This is amechanism that is beneficial for both our customers
and employees as it posts coupons provided byour customers in addition to the benefits available
under our current health and welfare benefit plan.

● Work–Life Balance

By strengthening Groupwide coordinationin recruitment, we have made it possible for
employees to work at the place they like without
being constrained by the location of their residence.
We also ensure that employees can take childcare
and nursing care leave regardless of their gender by
notifying and raising awareness of the benefit plan.

Testimonials from Male Employees Who Took a Childcare Leave● It was very good because I could devote myself to childcare.
● I was able to lessen my wife’s burden.
● As I am a man, I was worried about the reactions of others to my taking
a childcare leave, but my boss readily approved my request.
● I found something new every day. I felt that I was extremely happy as I could bein the closest place and see my child grow.

■ Promotion of Health Management
We introduced the Platinum Holiday System to allow
all employees to take a long-term paid leave of nine ormore consecutive days off in 2018 to improve the work
environment and encourage employees to take such aleave. As a result, the rate of acquisition of annual paid
holiday increased significantly.
ALSOK is making efforts to be a company whose
employees and their family can lead a healthy and fulfilling
life by implementing various initiatives to promote the healthof employees and insured persons, including making ahealth declaration, establishing a helpline called “Support
Line,” and holding exercise events in collaboration with thehealth insurance association.

ALSOK Health Declaration
1. ALSOK will promote health management as a top-priority
management issue, putting employees’ health first.
2. ALSOK will work to maintain and promote the health of
employees in active collaboration with the health insurance
association.
3. ALSOK will continue to develop as a “leading security services
company” that promotes health management and whose
employees and their family can lead a healthy and fulfilling life
and thereby contribute to the safety and security of society.

Rate of Annual Paid Leave Use (As of March 31 of each year)

45.7% 53.7%
2018

2019

60.0%
2020

ALSOK has been
selected as a
Certified Healthand Productivity
Management
Outstanding
Organization for
four consecutive
years.

32

S: Social

Community Contribution Activities
To give form to “arigato no kokoro” (a feeling of gratefulness and gratitude)—part of ALSOK’s
fundamental spirit—the Company acts as a good corporate citizen, diligently working to contributeto the resolution of the various issues faced by the communities it serves.

■ Ideas behind Community Contribution Activities
ALSOK conducts community contribution activities leveraging its own services to respond to the requests and expectations
from the local community for safety and security. We understand that the phase “protecting the safety and security of society”
in our management philosophy includes the meaning that we will protect the future in which all people can lead a safe and secure
life regardless of their age, gender, or any disability that they may have. Based on this idea, we participate in volunteering anddonation activities beyond regular business activities to contribute to the resolution of various social issues and to promote
regional development.

■ Contributions to Safety for Communities Utilizing the Know-How of
Security Services
We provide children, women, and senior citizens in the community with opportunities to learn about crime prevention andcardiopulmonary resuscitation.

● ALSOK ANSHIN KYOSHITSU®

Number ofClasses Held

Number of
Attendees

2,615 81,734● ALSOK Women’s Crime
Prevention Seminar

Number ofClasses Held24

Number of
Attendees

2,729● ALSOK HOTTO LIFE KOZA

Number ofClasses Held54

Number of
Attendees

1,450（Results for fiscal 2020）

Testimonials from School Teachers and Parents Who Attended ALSOK ANSHIN KYOSHITSU®
● Children could learn in a natural manner by actually experiencing how to respond when stopped by a suspicious person and important
points to be observed when staying at home alone.
● After taking ALSOK ANSHIN KYOSHITSU® classes, children’s manner during commutation to and from school changed, and even newly
admitted small children could learn easily.
● It is very helpful as the number of school guards is decreasing due to population aging.
● Parents could learn with their children through class observation, and these classes provided good topics for communication with children.

TOPIC
Received a Special Award in Tokyo
Metropolitan Social Contribution
Award for Promoting a Mutual
Assistance Society
ALSOK received a special award from the Tokyo Metropolitan
Government in January 2020 on the merits of its efforts in the areaof crime prevention and first aid education through ALSOKANSHIN KYOSHITSU®.
We continue to update class contents to respond to current
trends. For example, we added learning contents concerning fire
protection while staying at home alone in July 2020.

33● Crime Prevention Classes
at HomeIn response to the decrease in opportunities
to learn about crime prevention at school
due to the effect of COVID-19, we provided
BOHAN KARUTA (Japanese playing cards)
on our website to help children learn about
crime prevention at home in an enjoyable manner.

Relationship with the SDGs

■ Sports Promotion Activities● Sports and Athlete Support
ALSOK has many active sports clubs and supports athletes who belong to them. In
addition, we contribute to sports promotion by, for example, holding sports classes forchildren in the local community. As a member of the All Japan Business Committee for the2020 Olympics and Paralympics, ALSOK participates in the working group on barrier-freeaccess as well as in human rights classes held at elementary schools and events topromote the popularity of para-sports.

● Cooperation with Sporting Events

ALSOK Thailand employees who participated in Ayutthaya“KIZUNA” Ekiden

We participate in marathon events in Japan and overseas as AED runners. We also participate actively in other sports events for volunteering, suchas “running patrol,” in collaboration with local businesses.

■ Disaster Support/Donation Activities● Dispatching Disaster Volunteers
When Typhoon No. 19 hit Japan in 2019, 45 ALSOK employees in total participated indisaster support activities for 60 days on a cumulative basis. We provided a wide range of
support, including cleaning up residences, supplying drinking water to areas in which watersupply is cut off, dispatching mobile mail vans, and collecting cash from and clearing up
ATMs that were affected by power outage and flood. At the time of torrential rain in 2020, we
donated 20,000 liters of hypochlorous acid water to shelters in all prefectures of Kyushu tosupport infectious disease control measures, in addition to dispatching volunteers.

Activities in Marumori Town, Miyagi Prefecture, which
was affected by Typhoon No. 19● Activities of the ALSOK ARIGATO UNDO FOUNDATIONThe ALSOK ARIGATO UNDO FOUNDATION, which started its activities in1967 and was reorganized as a public interest incorporated foundation in2016, conducts its activities based on donations from the officers andemployees of the ALSOK Group as well as from external parties. We support
the social welfare activities and the restoration of affected areas through,among others, the donations of cash, vehicles, and disaster relief money.

Number of Vehicles
for Welfare Services
Donated118

on a cumulative basis（As of March 31, 2020）■ Support for the Next Generation/
Cultural and Artistic Activities● Children Support
In relation to the “National Movement to Support Children’s Future” that ALSOK
endorsed in 2017, we support the lives of children in poverty by donating a
portion of home security revenue through NPOs. We also conduct other activities
including donation through the ALSOK ARIGATO UNDO FOUNDATION,
volunteering at children’s cafeterias, and requesting assistance from ourcorporate customers.

Our children support
activities are also
reported in ourquarterly magazine
for home security
users to spark
the interest of
our customers.

● Mecenat Activities
We are working on the preservation of traditional events through participationin cultural and artistic activities. For example, our offices all over Japan are
conducting activities involving drums, shamisen, dances, etc., rooted in local
performing arts culture.
In particular, the activities of the ALSOK SHISHIMAI (Lion Dance) CLUB havebeen accredited as “This is MECENAT 2020,” and the shishimai dance
performed by our employees is entertaining many customers.

34

S: Social

Quality Improvement Initiatives
The origin of ALSOK’s business lies in providing the highest-quality products and services tocustomers. We are making various efforts to further improve quality in order to maintain the trustof our customers and society.

■ Approach to Quality Improvement
Given the nature of our services, such as Security Services, General Property Management and Fire Protection Services, andLong-Term Care Services, that are intended to protect the lives and properties of our customers, we regard the provision ofquality services that support the intention of customers based on the relationship of trust as an important management issue.
For this reason, ALSOK is promoting various quality improvement initiatives on an ongoing basis, including reflecting customer
feedback in business improvement as it is received, developing a corporate culture that encourages employees to compete andencourage one another, promoting various management systems, and preparing for anticipated risks.

■ Improvement of Customer and Employee Satisfaction
Customer feedback such as opinions, requests, complaints, and praises are sharedby all employees and used by them on a daily basis to improve our services. We arealso working to develop a corporate culture to seek both customer and employee
satisfaction at the same time by such means as GST (Good Service Thanks) Cards,
which are hand delivered to select employees and bear praises for their achievements
and/or appreciation for their support, Employee Satisfaction (ES) Meetings for opinion
exchange, and the enhancement of employee award programs.

Complaints
32%

Number ofCustomer Feedback

2,774

Praises68%
Number of feedback and their breakdown(Fiscal 2020)

Number of GST
Cards Distributed

84,247
on a cumulative basis

Group picture of Excellent Team Member Award winners

GST Cards● Customer feedback is collected every day and ● Introduction of GST Cards as an employee praisereported to officers and the President
program● ES Meetings held for frank opinion exchange ● Introduction of award programs for excellent offices
between officers and employees
and team members■ Operations of Management Systems
In 2002, ALSOK acquired ISO 9001 certification, the international standard
for quality management systems (QMS). As of March 31, 2020, 53 ALSOKGroup companies in total have acquired the certification. ALSOK’s efforts on
continuous improvement through the PDCA cycle also include the acquisitionof information security management system (ISMS) certification to protect
information assets.

Status of Management System
Certification● QMS certification● EMS certification● ISMS certification● PMS certification● BCMS certification
As of March 31, 2020 (Non–consolidated)

35

Relationship with the SDGs

■ Preparing for All Kinds of Risks
Based on its business continuity plan (BCP), ALSOK obtained ISO 22301
certification for business continuity management systems (BCMS) in March 2014
to prepare for all kinds of risks. When a disaster has actually occurred and its
damage is likely to expand, ALSOK promptly establishes a Disaster Response
Correspondence Office to collect information and secure necessary human andother resources.

● Risk anticipated in the BCP: Wide-area disaster (earthquake, wind,flood, and snow damage, abnormal weather, etc.), local damage(fire/explosion accident, bioterrorism/bomb/cyberterrorism, etc.),
system failure (data destruction, leakage of personal information,system down incident, etc.)● Comprehensive disaster response drills in anticipation of a disaster● Preparation for the occurrence of a security incident

Luggage
inspection event

Sales mocknegotiation
event

Comprehensive disaster response drills conducted
twice a year

Number of Timesa Disaster Response
Correspondence Office
Was Established

13(Fiscal 2020)■ Establishment of Internal Standards and
In-House Competitions
ALSOK established internal standards “ALSOK Standards” in 2006, and each
office strives to achieve the standard values applicable to the number of skill
certifications and public certifications secured necessary for work.
ALSOK also holds the Sohgo Security Alliance Quality Improvement
Tournament every year since 2010. In this tournament, employees compete invarious events that are directly related to our actual services. After the tournament,
videos of the winners of these events demonstrating their skills are made available
for viewing on the Company’s bulletin board as part of our Groupwide concerted
efforts to improve service executions skills and the quality of security services.

● ALSOK Standards

The number of skill certifications and public certifications secured necessary for each work
is quantified as A Standards and B Standards for different levels of achievement. Eachoffice strives to achieve and maintain the standards.

● Quality Improvement Tournament

At the 10th tournament in 2019, a total of 249 employees advanced from preliminary
tournaments held across Japan to put skills honed through daily operations to the test in
the main tournament’s 19 events including “luggage inspection” and “mock negotiation.”● Long-Term Care Quality Improvement Presentation

Group picture of award winners at the Long-Term Care
Quality Improvement Presentation

In the fourth presentation in 2019, 12 teams from four Group long-term care service
companies made presentations about initiatives to provide optimal services to customers
and their results.

■ Initiatives for Safe Driving
ALSOK is promoting measures to ensure safety,
including the establishment of annual targets forthe prevention of occupational accidents and theprovision of education on work safety. Security
service divisions where there are more driving
opportunities than other divisions are promoting
initiatives for safe driving, including the introductionof safe driver accreditation programs and no vehicle
accident award programs and the detection of
reckless driving by installing in-vehicle cameras
and drive recorders.

An in-vehicle camera in a security transportation
vehicle● Transportation Safety Management Concerning
Safety of Transportation Security Services● Safe Driver Accreditation Program

Number of Award
Winners for No
Vehicle Accident

982(Fiscal 2020)

36

G: GovernanceCorporate Governance
Basic Policies and Systems
Based on its management philosophy exemplified by the principles of “arigato no kokoro” (a feeling of gratefulness and gratitude)and “bushi no seishin” (a samurai spirit), ALSOK devotes itself to protecting the safety and security of its customers and ofsociety as a whole. The ALSOK Group also advocates “contributing to society” as one of its management policies. Meanwhile, tocontinue to be a corporate group that is trusted by all stakeholders, we strive to reinforce Groupwide corporate governance withmeasures that separate managerial execution and oversight functions, allow swifter decision making, encourage strong corporate ethics, and provide transparency in business management.

Revisions to the Rules

History of ALSOK’s Corporate Governance

Audit &
Supervisory Board

Board of Directors

Year

June 2002

2003

Number ofmembers

2020
2007

2009

2013

2015

2016

2020

7

8

7

8

10

12

2009

2016

2017

2020

1

2

3

4

OutsideNumber ofmembers

2008

2009

2020

4

5

4

November 2002
December 2002
April 2004
August 2004
September 2004
December 2004
May 2006

2003

2006

2020

July 20093

2

3

April 2016

OutsideIntroduction of the Executive Officer
SystemFormulation of the Compliance Rules
Formulation of the Risk Management
Rules
Setting up of the ALSOK Hotline
Formulation of the Basic Information
Security Policy
Establishment of the Information AssetManagement Committee
Formulation of the Personal
Information Security Policy
Formulation of the Basic Policy
Related to the Internal Control System
Formulation of the Information AssetManagement Rules
Setting up of an external reporting
hotline under the ALSOK Hotline

Overview of Corporate Governance Systems and Reasons for Adoption
The Company has adopted the Company with Audit & Supervisory Board structure described in the Companies Act of Japan.
By implementing the following systems, the Company affirms that effective and complete audits are conducted by Audit &Supervisory Board members and that management is being appropriately governed. The Company has appointed 12 directors,
four of which are outside directors, and four Audit & Supervisory Board members, three of which are outside Audit & Supervisory
Board members.
The Board of Directors meets once a month, in principle, to decide on basic management policies and important matterspertaining to operational execution and to supervise the execution of duties by directors and executive officers. The Management
Committee, which is chaired by the chairman and representative director, meets twice a month, in principle, to determine theagenda items to be presented to the Board of Directors and to discuss the operational execution policies formulated based on
Board of Directors’ decisions.
The Audit & Supervisory Board meets once a month, in principle, to discuss and make decisions based on reports onimportant matters related to audits. One Audit & Supervisory Board member attends meetings of the Management Committee toprovide appropriate oversight for management.
We have adopted the current system based on the judgment that it effectively ensures the impartiality and transparency ofmanagement.
General Shareholders’ Meeting
Board of Directors’ Meetings (Monthly)

4 Outside Directors
8 Internal Directors Total: 12

Discussions about Operational Policies on Business Affairs

Committees

Management Committee (Twice monthly)

Risk Management Committee
Compliance Committee
Information Asset Management Committee

Chairman and Chief Executive Officer (CEO)President and Chief Operating Officer (COO)
Discussions about Operational Policies on Business Affairs

37

Executive Officers
7 Directors and Executive Officers
15 Executive Officers
Total: 22

Internal Control
Operations

Outside Audits by an Independent
Auditing Corporation: Accounting Audits
Conducted by Grant Thornton Taiyo LLC

Internal Audits
Inspection Department

Operating Committeeof the Company(Twice monthly)

Audit & Supervisory Board
3 Outside Audit & Supervisory Board Members
1 Internal Audit & Supervisory Board Member
Total: 4 (Includes two part-time Audit &Supervisory Board Members)

Legal Consultation

Advisory Contracts with
Attorneys in Specialized Fields

Legal Office(As of June 24, 2020)

Reasons for Appointment and Duties of Outside Directors and Outside
Audit & Supervisory Board Members
Outside directors and outside Audit & Supervisory Board members are assumed to cover the functions of observation andsupervision of the management team with objective and neutral standpoints.
Outside directors and outside Audit & Supervisory Board members attend meetings of the Board of Directors, at which they
offer their opinions on the matters at hand. They receive from general managers in charge of each business and others briefings
on the issues to be discussed at meetings of the Board of Directors the day prior to the meeting, allowing them to more
effectively monitor management. The outside Audit & Supervisory Board members conduct audits at the premises of regional
offices and subsidiaries in the same manner as other Audit & Supervisory Board members. They also coordinate with theInspection Department and the independent auditing corporation employed by the Company in regard to supervision by outside
directors, audits by Audit & Supervisory Board members, internal audits, and accounting audits. To facilitate this coordination,
the outside Audit & Supervisory Board members periodically exchange information with these bodies.
The participation of the outside directors in meetings of the Board of the Directors enables them to monitor the operational
execution of other directors with regard to Internal Control Operations and other matters from an independent standpoint.
The outside Audit & Supervisory Board members also evaluate the legality of the measures implemented by Internal Control
Operations in the same manner as other Audit & Supervisory Board members. To this end, they perform both operational andaccounting audits of the organization and review all relevant documents. The Company employs four outside directors and threeoutside Audit & Supervisory Board members; applications have been submitted to the Tokyo Stock Exchange, identifying each ofthese individuals as independent officers.

Reason for Election as an Outside Director
Name

Reason for Election

Attendance at Board of
Directors’ Meetings(Fiscal 2020)

Seiei
Ono

Mr. Seiei Ono possesses abundant international experience and insight, and advanced ability,
developed as a manager at a major trading company and elsewhere over many years. He can be
expected to contribute to enhancing and strengthening the corporate governance of the Groupand further improvement in corporate value, through providing valuable opinions from a broad
perspective regarding management, and therefore the Company has elected him again as an
Outside Director.

14/14 times

Hideharu
Kadowaki

Mr. Hideharu Kadowaki possesses abundant experience and insight, and advanced ability,
developed as a manager at a major financial institution and elsewhere over many years. He can be
expected to contribute to enhancing and strengthening the corporate governance of the Groupand further improvement in corporate value, through providing valuable opinions from a broad
perspective regarding management, and therefore the Company has elected him again as an
Outside Director.

11/14 times

ToyoakiAndo

Mr. Toyoaki Ando possesses abundant experience and insight, and advanced ability, developed
through serving in important positions at a major non-life insurance company over many years. He
can be expected to contribute to enhancing and strengthening the corporate governance of theGroup and further improvement in corporate value, through providing valuable opinions from a
broad perspective regarding management, and therefore the Company has elected him again as
an Outside Director.

11/11 times(After the assumption of
office in June 2019)

Hirotomo
Suetsugu

Mr. Hirotomo Suetsugu possesses abundant experience and insight, and advanced ability,
developed as an officer at a major steel manufacturer over many years. He can be expected tocontribute to enhancing and strengthening the corporate governance of the Group and further
improvement in corporate value, through providing valuable opinions from a broad perspective
regarding management, and therefore the Company has elected him as a new Outside Director.

ー(Assumed officein June 2020)

Observation of Japan’s Corporate Governance Code
The Company observes the principles put forth by Japan’s Corporate Governance Code (the “Code”), which was formulated by
the Tokyo Stock Exchange, using these policies as guidelines for corporate governance and carrying out detailed inspections
and reviews of organizational structures. In addition, we submit a Corporate Governance Report to the Tokyo Stock Exchange,
on a yearly basis and post this report on our corporate website. This report contains information on our efforts to observe the Code.
Going forward, we will continue to examine possible measures for our various systems in order to create an organizational
structure that features more effective corporate governance.

38

G: GovernanceCorporate Governance
Effectiveness Assessment
In assessing the effectiveness of the Board of Directors, ALSOK conducts a questionnaire survey with all directors and all Audit &Supervisory Board members as well as interviews with individual officers as necessary. In view of the opinions collected throughthem, ALSOK is working to improve the effectiveness of the Board of Directors.

Main Opinions Presented in the Course of Effectiveness Assessment and Responses to Them
● Composition of the Board of Directors
To achieve a more desirable composition,
ALSOK should consider nominating candidatesof more diverse age, gender, and nationality
and/or candidates with background other thancorporate management.

● Progress Status Reporting on theManagement Plan
While explanation of financial results is ample,
further reports on the progress status of the
management plan from the non-quantitative
perspective are necessary.

● GovernanceGroupwide controls and management systems
should be implemented thoroughly. Moredetailed reports on human risks and humanresource management and discussions basedon them are necessary.

In June 2020, ALSOK elected a woman as a new outside
Audit & Supervisory Board member. ALSOK will continue toconsider further improvement going forward including theelection of outside directors.

Quarterly reports on the progress status of key measures at
each division will be given in addition to the explanation offinancial results.

The Risk Management Committee is currently reviewing risks
that may have a significant impact on business operations
from various risk management perspectives including:
1. Completeness of risk items that should be managed;
2. Proper assessment of the impact of each risk item; and3. Consolidated subsidiaries and companies accounted for by
the equity method.
Based on the above, ALSOK will further strengthen internal
control including subsidiaries and affiliates and the management of risks associated with the recruitment and development of human resources.

Group Management
The Company has established divisions responsible for the management of subsidiaries and affiliates from the perspectiveof strengthening Group governance. They receive reports on the matters concerning the execution of duties and reports onimportant information about the risk of loss at subsidiaries and affiliates on a timely basis, and the Company and the relevant
subsidiary or affiliate as applicable will respond to risks in coordination with each other. In addition, the Company also provides
subsidiaries and affiliates with strict guidance and supervision by dispatching directors and Audit & Supervisory Board members
to them. Meanwhile, the Inspection Department works to ensure Groupwide compliance through the provision of guidance,
advice, and recommendations to subsidiaries and affiliates focusing on the management of business activities in general,
operation systems, and business process improvements based on the Internal Audit Regulations.

Policies and Methods for Deciding Compensation Amounts
Annual limits of ¥400 million for the compensation of directors and ¥120 million for the compensation of Audit & Supervisory
Board members have been set at the General Shareholders’ Meeting.
The compensation of directors includes a fixed amount, calculated according to their positions and whether they are an
outside director or not, as well as a performance-linked amount, calculated based on an evaluation of the operational execution
performance of individual directors in the previous fiscal year conducted in accordance with predetermined standards. Decisions
regarding the exact amounts of compensation of directors are made by the Board of Directors.
The compensation of Audit & Supervisory Board members is paid as a fixed amount, and the exact amounts of compensation
are decided in accordance with standards set by the Audit & Supervisory Board.

39

Internal Control System
Based on the Companies Act and the Financial Instruments and Exchange Act, the Company has established systems toensure directors perform duties in compliance with all relevant laws and regulations and its articles of incorporation. In addition,
the Company has in place systems for guaranteeing that proper operating practices are observed by other listed companies andthe corporate groups consisting of these companies and their subsidiaries.
The management of the ALSOK Group carried out an evaluation of the Group’s internal control system as of March 31,
2020, based on the Financial Instruments and Exchange Act. This evaluation found that the internal control system is effective,
which has been noted in the report on the internal control system. The independent auditing corporation, Grant Thornton Taiyo
LLC, has also expressed the opinion that the result of the evaluation by the management noted in the internal control reportis accurate.

Compliance
The Company has established the Compliance Committee, which is headed by the executive officer in charge of compliance, topromote legal compliance. The committee strives to inoculate an unwavering awareness of compliance in all executive officers
and employees based on the compliance rules formulated in 2002, and periodically verifies the status of compliance in businessand other activities.
The ALSOK Hotline was set up in 2004 to facilitate early identification and prevention of corporate ethics issues. This hotline
allows executive officers and employees to report any illegal, inappropriate, or unethical behavior they may witness via email,telephone, or written statement without fear of suffering disadvantageous treatment. In 2016, the Company establishedan external reporting hotline to add to the already existing internal hotline.

Risk Management
The Company places particular importance on risk management, which is central to its business of protecting the safety andsecurity of society. Accordingly, the Company formulated risk management rules in 2002. The Company then established the
Risk Management Committee based on these risk management rules and assigned the executive officer in charge of risk
management as its chairperson. In addition, individual risk management assessment bodies have been set up at the Head
Office and each individual business office to undertake Companywide risk management activities, such as the identification andevaluation of risks and the formulation of preventative measures and countermeasures. The Risk Management Committee also
contains subcommittees for risks in specific areas. These subcommittees gather information on the risks in their designatedarea, analyze and evaluate these risks, and draft measures to mitigate these risks. Furthermore, the Company has developedorganizational structures to ensure that it can respond quickly should a serious emergency occur. Through such structures, theCompany is able to relay urgent orders throughout the organization, set up a response headquarters, or take other emergency
response measures.

Disclosure and IR Activities
ALSOK has formulated its Disclosure Policy based on which it actively conducts impartial and timely information disclosure.
In addition, the Company has revised its investor relations (IR) website to provide stakeholders with greater ease in finding theinformation they seek. We also aim to foster a deeper understanding among overseas institutional investors of the security
services industry in Japan and the growth strategies of
the ALSOK Group. To this end, we provide Englishlanguage translations of financial summaries and otherdocuments on our English-language IR website.
The Company’s IR Website

https://www.alsok.co.jp/en/ir/40

G: GovernanceDirectors, Audit & Supervisory Board Members, and Executive Officers(As of June 24, 2020)

Directors

41

Atsushi Murai

Yukiyasu Aoyama

Chairman and Representative Director
Chief Executive Officer (CEO)President and Representative Director
Senior Executive President
Chief Operating Officer (COO)

Sep. 1995: Director-General, Chubu Regional Police Bureau(Resigned in Jun. 1996)
Jun. 1996: Deputy Governor, Deposit Insurance Corporation of Japan(Resigned in Sep. 1997)
Sep. 1997: Joined the Company as a consultant
Jun. 1998: Senior Executive Vice President and Representative
Director
Jun. 2001: President and Representative Director
Jul. 2003: Chief Officer of Business Promotion Affairs
Apr. 2004: Chief Officer of Security Operations Division
Apr. 2011: Chief Executive Officer (Current)
Apr. 2012: Chairman and Representative Director (Current)

Jul. 2006: Director-General, Customs and Tariff Bureau,
Ministry of Finance Japan (Resigned in Jul. 2008)
Aug. 2008: Joined the Company as Senior Executive Officer,
Chief Officer of Security Operations Division
Apr. 2009: In charge of Human Resources Affairs, Security Operations,and Corporate Ethics
Jun. 2009: Executive Vice President and Representative Director
Apr. 2010: Senior Executive Vice President and Representative
Director
Chief Officer of Business Promotion Affairs
Apr. 2011: Chief Operating Officer (Current)
Apr. 2012: President and Representative Director (Current)
Senior Executive President (Current)

Ikuji Kayaki

Hirohisa Hokari

Vice President and Representative Director (Senior Executive Vice President)
Head of ALSOK In-house Company
Chief Officer of Business Promotion Affairs
East Japan Area
Corporate Customers
Business Promotion Division (East Japan Area)

Director (Executive Vice President)
Deputy Chief Officer of Business Promotion Affairs
Chief Officer of International Affairs
International Affairs
Business Planning & Management
Sales Promotion
Financial Affairs

Apr. 1982: Joined the Company
Apr. 2011: Chief Officer of Regional Division (Ⅳ)
Apr. 2012: Executive Officer
Apr. 2014: Deputy Chief Officer of Security Operations
In charge of Structural Reform of Transportation Security Services
Apr. 2015: Senior Executive Officer
Chief Officer of Security Operations
Jun. 2017: Director and Senior Executive Officer
Apr. 2018: Executive Vice President and Representative Director
Head of ALSOK In-house Company (Current)
In charge of East Japan Area (Current)
Deputy Chief Officer of Business Promotion Affairs in charge ofCorporate Customers
Apr. 2019: Vice President and Representative Director (Current), Senior Executive
Vice President (Current)
Chief Officer of Business Promotion Affairs in charge of Corporate
Customers (Current)
In charge of Business Promotion Division (East Japan Area) (Current)

Apr. 2010: Director-General of Operations Department at Bank of Japan(Resigned in Jun. 2011)
Jun. 2011: Joined the Company as Executive Officer
In charge of Business Planning and Financial Institution
Sales Promotion
General Manager of Business Planning Department
Feb. 2012: Senior Executive Officer and Deputy Chief Officer ofBusiness Promotion Affairs (Current)
In charge of Business Planning & Management
Apr. 2012: In charge of Financial Institution Services andTransportation Security Services
Apr. 2014: In charge of General Affairs/Corporate Planning,
Financial Institution Services, Compliance, Risk
Management, and Information Asset Management
Jun. 2014: Director and Senior Executive Officer
Apr. 2016: In charge of Corporate Planning & Administration, Strategic Business,
Business Planning & Management (Current), and Financial Affairs (Current)
Apr. 2018: Executive Vice President and Director (Current)
In charge of Sales Promotion (Current)
Apr. 2019: In charge of International Affairs (Current)
Chief Officer of International Affairs (Current)Tsuyoshi Murai

Shigeki Nomura

Director (Executive Vice President)
Human Resources Affairs
General Affairs/PR
Tokyo 2020 Olympic and Paralympic Games Promotion Affairs in charge of Promotion
Corporate Ethics
Compliance
Risk Management
Information Assets Management
Management Company

Director (Senior Executive Officer)
Chief Officer of Regional Division (II)Deputy Chief Officer of Business Promotion Affairs
West Japan Area
Business Promotion (West Japan Area)

Jul. 1999: Joined the Company
Jun. 2007: General Manager of Home Marketing Division
Apr. 2010: Executive Officer Chief Officer of Regional Division (Ⅰ)
Feb. 2011: In charge of General Property Management
Mar. 2011: Representative Director, Japan Facilio Co., Ltd.
(Seconded, resigned in Mar. 2014)
Apr. 2014: Senior Executive Officer
Deputy Chief Officer of Business Promotion Affairs
In charge of Business Planning & Management and Regional Financial
Institution Services
Apr. 2016: In charge of Human Resources Affairs (Current)
and Corporate Ethics (Current)
Jun. 2016: Director and Senior Executive Officer (Current)
Apr. 2018: In charge of General Affairs/PR (Current), Compliance (Current), Risk
Management (Current), and Information Assets Management (Current)
Chief Officer of Tokyo 2020 Olympic and Paralympic Games Promotion Affairs
May 2018: In charge of Central Japan Area
Deputy Chief Officer of Business Promotion Affairs
In charge of Business Promotion Division (Central Japan Area)
Apr. 2019: Executive Vice President and Director (Current)Tokyo 2020 Olympic and Paralympic Games Promotion Affairs incharge of Promotion (Current)
Apr. 2020: In charge of Management Company

Apr. 1984: Joined the Company
Apr. 2011: General Manager of Human Resources Department
Jun. 2011: Executive Officer
In charge of Human Resources
Apr. 2014: Senior Executive Officer
Deputy Chief Officer of Business Promotion Division (Central Japan)
Chief Officer of Regional Division (Ⅲ)
Apr. 2017: Chief Officer of Regional Division (Ⅶ)
Jun. 2017: Director and Senior Executive Officer (Current)
May 2018: Deputy Chief Officer of Business Promotion Affairs (Kansai Area)
In charge of West Japan Area (Current)
Apr. 2019: Deputy Chief Officer of Business Promotion Affairs in charge ofBusiness Promotion (West Japan Area) (Current)
Apr. 2020: Chief Officer of Regional Division (II) (Current)

Motohisa Suzuki

Koji Kishimoto

Director (Senior Executive Officer)
Chief Officer of Security Operations
Structural Reform of Transportation Security Services
Chief Officer of Tokyo 2020 Olympic and Paralympic Games Promotion Affairs

Director (Senior Executive Officer)
Financial & Accounting
Internal Control
Procurement

Jan. 2015: Director of Traffic Bureau, National Police Agency(Resigned in Jan. 2016)
Apr. 2016: Joined the Company as Senior Executive Officer (Current)
In charge of General Affairs/PR and Procurement
Deputy Chief Officer of Security Operations
In charge of HOME ALSOK, Compliance, Risk Management, andInformation Assets Management
Deputy Chief Officer of Business Promotion Affairs
Apr. 2018: Chief Officer of Security Operations (Current)
In charge of Structural Reform of Transportation Security Services(Current)
Deputy Chief Officer of Tokyo 2020 Olympic and Paralympic Games
Promotion Affairs
Apr. 2019: Chief Officer of Tokyo 2020 Olympic and Paralympic Games
Promotion Affairs (Current)
Jun. 2019: Director and Senior Executive Officer (Current)

Nov. 1985: Joined the Company
Oct. 2012: General Manager of Financial & Accounting Department
Apr. 2016: Executive Officer and Second in Charge of Financial &Accounting
Apr. 2018: Senior Executive Officer (Current),
In charge of Financial & Accounting (Current),
In charge of Internal Control (Current)
Apr. 2019: In charge of Procurement (Current)
Jun. 2020: Director and Senior Executive Officer (Current)42

G: GovernanceDirectors, Audit & Supervisory Board Members, and Executive Officers(As of June 24, 2020)

Directors (Outside Directors)

Seiei Ono

Hideharu Kadowaki

Apr. 2009: Executive Vice President, Mitsubishi Corporation (Resigned in Mar. 2013)
Apr. 2010: President, Mitsubishi International Corporation (Resigned in Mar. 2012)
Apr. 2012: Regional CEO, North America (Concurrently)
President, Mitsubishi Corporation (Americas) (Resigned in Mar. 2013)
Dec. 2013: Executive Vice President and Representative Director,
Mitsubishi Research Institute, Inc.
Dec. 2014: Executive Vice President and Representative Director,
Mitsubishi Research Institute, Inc. (Resigned in Dec. 2016)
Dec. 2016: Executive Advisor, Mitsubishi Research Institute, Inc. (Resigned in Dec. 2017)
Jun. 2017: Joined the Company as Outside Director (Current)
Jan. 2018: Advisor, Mitsubishi Research Institute, Inc. (Resigned in Dec. 2018)

Apr. 2001: Representative Director, Senior Managing Director, and Senior
Managing Executive Officer, Sumitomo Mitsui Banking Corporation(Resigned in Nov. 2002)
Dec. 2002: Representative Director and Senior Managing Director, Sumitomo
Mitsui Financial Group, Inc.
Jun. 2003: Deputy President and Representative Director, Sumitomo Mitsui
Financial Group, Inc. (Resigned in Mar. 2004)
Jun. 2004: Chairman, The Japan Research Institute, Limited (Resigned in Jun. 2008)
Jun. 2008: Special Adviser and Senior Fellow, The Japan Research Institute,
Limited (Current)
Jun. 2012: Member of the Board, Asian Rural Institute (Current)
Jul. 2017: Advisor, C’BON COSMETICS Co., Ltd. (Resigned in Jun. 2019)
Jun. 2018: Joined the Company as Outside Director (Current)
Dec. 2019: External Director, Aucfan Co., Ltd. (Current)

Toyoaki Ando

Hirotomo Suetsugu

Jun. 2009: Executive Officer, Tokio Marine & Nichido Fire Insurance Co., Ltd.
Jun. 2011: Managing Executive Officer, Tokio Marine & Nichido Fire InsuranceCo., Ltd.
Jun. 2013: Managing Director, Tokio Marine & Nichido Fire Insurance Co., Ltd.
(Resigned in Mar. 2015)
Apr. 2015: Advisor, Tokio Marine & Nichido Fire Insurance Co., Ltd.
(Resigned in Jun. 2015)
Jun. 2015: Managing Director, General Insurance Rating Organization of Japan(Current)
Jun. 2019: Joined the Company as Outside Director (Current)

Apr. 2009: Executive Officer, Nippon Steel Corporation (Currently NIPPON STEELCORPORATION) (Resigned in Jun. 2012)
Jun. 2012: Audit & Supervisory Board Member, Nippon Steel Corporation(Resigned in Jun. 2016)
Jun. 2016: Advisor, NIPPON STEEL & SUMITOMO METAL CORPORATION(Currently NIPPON STEEL CORPORATION) (Resigned in Jun. 2019)
Advisor, Nippon Denko Co., Ltd. (Current)
Jun. 2020: Joined the Company as Outside Director (Current)

Director (Outside Director)

Director (Outside Director)

Director (Outside Director)

Director (Outside Director)

Executive Officers

43

Kazuhide Shigemi

Takashi Kumagai

Kazumi Suzuki

Norihiko Mizutani

Tetsuya Tsuburaya

Naoki Hyakutake

Hiroyoshi Yoshida

Senior Executive Officer
Corporate Planning &Administration
Strategic Business

Senior Executive Officer
Deputy Chief Officer ofBusiness Promotion
Affairs
Long-Term Care
President andRepresentative Directorof Life Holdings Co., Ltd.
President andRepresentative Directorof Life Co., Ltd.
President andRepresentative Directorof MBIC Life Co., Ltd.

Senior Executive
Officer
R&D Engineering
Affairs

Senior Executive Officer
Deputy Chief Officer ofBusiness Promotion
Affairs
Central Japan Area
General Property
Management andInstallation
Business Promotionin Central Japan Area
Business Promotionof General Property
Management andInstallation

Executive Officer
General Manager ofGeneral Affairs
Department
Second in Charge ofGeneral Affairs

Executive Officer
General Manager of
Human Resources
Department
Human Resources

Executive Officer
General Manager ofTokyo 2020 Olympic
and Paralympic Games
Promotion Affairs
Tokyo 2020 Olympic
and Paralympic Games
Promotion AffairsAudit & Supervisory Board Members

Akira Kono

Shinichiro Nakano

Apr. 1980: Joined the Company
Jun. 2012: General Manager of Business Management Department
Apr. 2014: General Manager of Human Resources Department
Apr. 2016: Executive Officer, in charge of Human Resources
Apr. 2017: Chief Officer of Regional Division (V) (Current)
Jun. 2019: Standing Audit & Supervisory Board Member (Current)

Jun. 2008: Risk Management Div., The Norinchukin Bank
Jun. 2012: Planning Management Div., The Norinchukin Bank
Jun. 2014: Managing Director, The Norinchukin Bank (Resigned in Mar. 2019)
Director, Norinchukin Value Investments Co., Ltd.
(Resigned in Mar. 2018)
Director, The Norinchukin Trust & Banking Co., Ltd.
(Resigned in Mar. 2019)
Auditor, Kyodo Housing Loan Co., Ltd. (Resigned in Jun. 2019)
Apr. 2019: Standing Advisor, The Norinchukin Bank (Resigned in Jun. 2019)
Jun. 2019: Joined the Company as Outside Audit & Supervisory
Board Member (Current)

Makoto Uenoyama

Michiko Nagasawa

Jun. 2007: Director, Matsushita Electric Industrial Co. Ltd.
(Currently Panasonic Corporation)
Apr. 2010: Managing Director, Panasonic Corporation (Resigned in Jun. 2012)
Jun. 2012: Managing Executive Officer, Panasonic Corporation(Resigned in Mar. 2013)
Apr. 2013: Corporate Advisor, Panasonic Corporation (Resigned in Mar. 2015)
Jun. 2013: Joined the Company as Standing Audit & Supervisory
Board Member (Outside)
Apr. 2015: Associate, Panasonic Corporation (Current)
Jun. 2017: Joined the Company as Outside Audit & Supervisory
Board Member (Current)
Jun. 2019: Outside Director, Hitachi Metals, Ltd. (Current)

Apr. 1984: Registered as an attorney-at-law
Apr. 2007: Professor of Law, Gakushuin University Law School (Resigned in Mar. 2013)
Jan. 2008: Partner at THE TOKYO-MARUNOUCHI LAW OFFICES (Current)
Apr. 2012: Auditor, Daini Tokyo Bar Association (Resigned in Mar. 2013)
Mar. 2013: Outside Board Director, OTSUKA KAGU, LTD. [Audit &Supervisory Committee Member from Mar. 2017] (Resigned in Mar. 2019)
Jul. 2016: Vice Chairman, Finance Committee, Japan Federation of Bar
Associations (Resigned in Jun. 2017)
Jul. 2018: Audit & Supervisory Committee Member, Building Research Institute,
National Research and Development Agency, Japan, Ministry of Land,
Infrastructure, Transport and Tourism (Current)
Jun. 2019: Outside Director, SB Players Corp. (Current)
Apr. 2020: Audit & Supervisory Committee Member, Japan Federation of Bar
Associations (Current)
Jun. 2020: Outside Audit & Supervisory Board Member, Sojitz Corporation (Current)
Joined the Company as Outside Audit & Supervisory Board Member (Current)

Audit & Supervisory Board Member

Audit & Supervisory Board Member(Outside Audit & Supervisory Board Member)

Audit & Supervisory Board Member(Outside Audit & Supervisory Board Member)

Audit & Supervisory Board Member(Outside Audit & Supervisory Board Member)

Yasuhiro Yoshimoto

Seiji Ono

Yoshio Kumazaki

Hiroyuki Ono

Ken Takahashi

Atsushi Komori

Executive Officer
General Property
Management and Fire
Protection Services
President andRepresentative Directorof NIPPON BUILDING
MAINTENANCE CO., LTD.

Executive Officer
Second in charge ofCorporate Customer
Home ALSOKExecutive Officer
Chief Officer of Regional
Division (Ⅰ)

Executive Officer
Chief Officer of Regional
Division (Ⅲ)

Executive Officer
Chief Officer of Regional
Division (Ⅴ)

Executive Officer
Chief Officer of Regional
Division (Ⅶ)

Yutaka Komatsu

Yoshiharu Nagashima

Executive Officer
President andRepresentative Directorof ALSOK HOKKAIDO
CO., LTD.

Executive Officer
President and Representative
Director of ALSOK CHIBA
CO., LTD.

44

Financial Section

Financial Review
Review of Fiscal 2020
In the fiscal year under review, consolidated net sales increased
3.7% year on year to ¥460,118 million, operating income
increased 14.0% to ¥36,795 million, ordinary income
increased 14.8% to ¥38,880 million, and profit attributable toowners of parent increased 8.5% to ¥24,163 million. Net
sales increased for 10 consecutive fiscal years and reacheda record high for nine consecutive fiscal years. Profit alsoreached a record high at each profit level, and profit attributableto owners of parent increased for eight consecutive fiscal
years. ALSOK focuses on ordinary income margin andconsolidated return on equity (ROE) as indicators to evaluate
the achievement of management targets. For fiscal 2020,
the ordinary income margin was 8.5% and ROE was 10.1%,
which were above the targets of around 8.0% and 10.0%,
respectively, as set forth in the Medium-Term Management
Plan Grand Design 2020.
During the fiscal year under review, the business sentimentin Japan had declined, especially among major manufacturers,
since the second quarter, due to deceleration of the world
economy and other factors. Moreover, as a result of the
COVID-19 pandemic, the economic activities of major
Western countries have stalled since February 2020. Facedwith this situation, there are concerns that the Japanese
economy may experience an economic downturn far greaterthan that of the Lehman crisis. In this environment, the
ALSOK Group, 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),has continued to operate business by providing appropriate
services. In addition, as stated in its Medium-Term Management
Plan, Grand Design 2020, the Group has aimed to become
an “integrated safety and security solutions provider” thatNet Sales

For the Final Fiscal Year of theMedium-Term Management Plan
For fiscal 2021, a significant negative economic growthis forecasted due to the effect of the COVID-19 pandemic.
The security services industry is also expected to face theeffect of suspensions of and/or cancellation on security
services contracts and cut in price of security services on
the back of the cancellation of various events and increases
in the number of stores and businesses that are forced toclose down temporarily or permanently. On the other hand,
there will be an increasing number of security issues on theback of, among others, increases in the number of unmanned
stores, offices, etc., due to temporary closures or working
from home, concerns about the safety and security of seniorcitizens living alone and children staying at home alone, andfraud and other crimes piggybacking on COVID-19, which
are expected to drive demand for the provision of further
services by the ALSOK Group.
In such a business climate, the ALSOK Group will workon controlling the infectious disease and ensuring business
continuity based on the national policies and action plansconcerning the measures to control the pandemic andguidance provided by municipalities and will aptly meet new
safety and security needs of customers and society.
Aiming to become an integrated safety and security
solutions provider that supports the safety and security ofcustomers and society, the ALSOK Group will also work to

Ordinary Income
YOY

YOY

¥460.1billion Up 3.7%

¥38.8 billion Up14.8%(Billions of yen)
480

(Billions of yen)40

¥460.1billion

360

30

240

20

120

10

0

¥38.8

billion

2020

(FY)

0

2016

45

supports the safety and security of customers and society;it has actually been striving for further evolution and deepeningof its Security Services business and other related businesses
in order to respond to increasingly sophisticated anddiversifying safety and security needs of each customer andsociety.

2017

2018

2019

2020

(FY)

2016

2017

2018

2019

strengthen and expand security services on the back ofincreasingly diverse customer needs, while promoting facility
management services both in Japan and overseas andstrengthening long-term care and related services. At thesame time, the ALSOK Group will strive to raise productivity,
while providing new products and services leveraging thelatest technologies. Through these measures, we will realize
sustainable growth of the ALSOK Group.
In consideration of the implementation of the measures
mentioned above, we forecast the consolidated financial
results of the ALSOK Group for fiscal 2021 as follows:
net sales of ¥485,000 million (up 5.4% year on year),
operating income of ¥37,600 million (up 2.2% year onyear), ordinary income of ¥39,200 million (up 0.8% year
on year), and profit attributable to owners of parent of¥24,700 million (up 2.2% year on year).

Research and development expenses for fiscal 2020
were ¥594 million in total and pertained mainly to Security
Services. It should be noted that the Research andDevelopment Division of the Company is conducting
activities not falling under research or development such as
survey, planning, intellectual property management, andquality control as an integral part of research and development
activities. If we add the amount of expenses for these
activities to the amount of research and development
expenses, the total amount would be ¥1,388 million.
To ensure safe and secure daily life, the Company
conducts various research to cope with labor shortages
due to declining birth rates and population aging,special-case scams and the like, stalking, crimes targetingchildren and women, etc. It will also work to develop
measures to control COVID-19 infection.

Policy on Growth Investments(Capital Investments/Researchand Development)

Shareholder Return Policy

ALSOK made capital investments of ¥14,066 million in total
in property, plant and equipment and intangible assets infiscal 2020 to respond to business expansion particularly insecurity services and to improve capabilities. These investments mainly consist of ¥6,697 million in machinery andequipment used in electronic security services, ¥784 million
in buildings, ¥873 million in furniture and fixtures, ¥1,219
million in software, and ¥1,422 million in otherintangible assets.
Research and development are conducted for the
purpose of contributing to the improvement of profitability
and based on the basic policy of capturing increasingly
diverse market needs and promoting the development oftechnologies and products that have market competitiveness.

The Company considers the provision of returns to shareholders to be one of the top-priority management issues,and it is the Company’s basic policy to distribute returns in amanner supported by actual financial results, while ensuring
the enhancement of internal reserves. We will apply thoseinternal reserves to, among others, research and development expenses necessary for future growth and development and capital investments in the upgrading of information
systems and new businesses to further improve our financial
results. It is also our basic policy to distribute our surplus
twice a year as interim dividend and year-end dividend, which
are subject to the approval of the General Shareholders’Meeting and the Board of Directors, respectively.

Consolidated Payout Ratio

Capital Investments
YOY¥14.0 billion Down 11.2%(Billions of yen)YOY

29.3 % Down 0.7percentage

point

(%)

20

40

¥14.0

15

billion29.3 %
30

10

20

5

10

0

2016

2017

2018

2019

2020

(FY)

0

2016

2017

2018

2019

2020

(FY)

46

Financial Section

Management Indexes

2010

2011

2012

2013

Net sales

278,579

279,272

304,723

315,564

Cost of sales

210,097

209,364

232,812242,410Gross profit

68,482

69,90871,91073,153

Selling, general and administrative expenses

59,211

59,555

61,10061,363Operating income

9,270

10,352

10,81011,790Ordinary income

10,81911,765

12,55814,741

Profit attributable to owners of parent

4,563

4,706

3,903

8,574

Gross profit margin (%)

24.6

25.0

23.6

23.2

Operating income margin (%)

3.3

3.7

3.5

3.7

Ordinary income margin (%)

3.9

4.2

4.1

4.7

Return on assets (ROA) (%)

3.8

4.2

4.4

5.1

Return on equity (ROE) (%)

3.3

3.3

2.7

5.7

EV/EBITDA (Times)*

2.3

1.4

1.4

2.7

Equity capital ratio (%)

50.9

50.3

51.3

52.1

Equity capital ratio on market-value basis (%)

39.4

32.0

34.8

46.5

51,31849,311

39,27037,455

24.0

20.1

34.1

36.9

1.0

1.0

1.1

1.1

Shareholders’ equity turnover ratio (Times)

2.0

2.0

2.1

2.1

Tangible fixed assets turnover ratio (Times)

4.9

4.9

5.2

5.4

1,397.90

1,421.67

1,446.93

1,536.30

45.39

46.82

38.83

85.30

Price-book value ratio (Times)

0.8

0.6

0.7

0.9

Price earnings ratio (Times)

23.9

19.3

25.3

16.1

Dividends per share (Yen)

20

20

20

25

Consolidated dividend payout ratio (%)

44.1

42.7

51.5

29.3

Closing stock price (Yen)

1,083

905

982

1,373

27,322

27,79027,86828,054

Average number of years of continuous service (Non-consolidated) 12.3
Percentage of employees returning to work after childcare leave
92.2(Non-consolidated, total for male and female employees)
CO2 emissions volume (Non-consolidated, t-CO2)
40,871

12.7

13.3

13.8

90.2

93.3

97.6

39,96838,022

38,587

Fiscal years ended March 31

Profit and loss (Millions of yen)

Profitability

Stability

Interest-bearing liabilities (Millions of yen)Interest coverage ratio (Times)
Efficiency
Total asset turnover ratio (Times)

Per share information
Net assets per share (Yen)Profit attributable to owners of parent per share (Yen)

Other information
Number of employees (Consolidated)* Method of calculation for EV/EBITDA is as follows:
EV (Enterprise value) = Market capitalization + Interest-bearing liabilities – Short-term liquidity (Cash and deposits + Short-term investments in securities)
EBITDA (Earnings before interest, tax, depreciation and amortization) = Operating income + Depreciation and amortization
Note: Based on the “Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ Statement No. 28, February 2018), financial information for the fiscal year ended March 31, 2018 and subsequent years
has also been restated.

47

2014

2015

2016

2017

2018

2019

2020

328,209

365,749

381,818

413,343435,982443,535

248,900

276,116

282,880

310,704

330,493334,197

79,30889,632

98,937

102,639

105,489

109,338

60,37566,66069,901

74,21775,37877,057460,118
345,097
115,020
78,22436,79538,88024,16318,932

22,971

29,03628,422

30,11132,28020,74524,70030,66730,30931,91333,881

10,955

13,534

17,86818,33019,344

22,269

24.2

24.5

25.9

24.8

24.2

24.7

5.8

6.3

7.6

6.9

6.9

7.3

6.3

6.8

8.0

7.3

7.3

7.6

6.5

6.9

8.5

8.2

8.2

8.4

7.0

7.8

9.9

9.7

9.3

9.9

5.3

10.1

13.4

8.7

10.7

8.7

46.2

48.4

51.9

51.0

55.0

56.8

63.5

110.1

175.4

108.2

134.3

119.0

71,66673,69947,21065,59952,65847,412

36.4

28.5

30.1

54.2

25.8

18.1

1.0

1.0

1.1

1.1

1.1

1.1

2.1

2.1

2.1

2.2

2.1

2.0

5.2

5.4

5.3

5.1

4.9

5.0

1,574.74

1,800.15

1,805.09

1,956.25

2,155.74

2,302.38

108.99134.65177.77182.37191.93219.98

1.4

2.3

3.4

19.9

30.4

34.3

30

38

50

27.5

28.2

28.1

2,164

4,095

28,091

2.1

2.4

2.1

22.8

27.5

21.9

55

60

66

25.0
8.0
8.5
9.3
10.1
8.6
57.3
124.2
51,264
26.2
1.1
1.9
5.2
2,425.02
238.69
2.2
22.0
70
29.3
5,260

30.2

31.3

30.0

6,100

4,155

5,260

4,820

31,221

31,446

14.4

14.9

15.4

36,69337,51937,417

15.9

16.4

16.8

37,902
17.2

92.4

96.6

93.7

91.3

98.3

98.1

98.2

41,377

39,21237,39036,64936,291

34,23832,87648

Financial Section

Breakdown of Sales/Number of Contracts
Net Sales by Service Type
Billions of yen

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Electronic Security Services 138.4

71.3
47.6

142.9
71.3
49.8

147.1
73.8
50.8

151.8
77.2
51.0

160.4
88.4
52.3

167.1
93.9
54.6

170.5
100.4
56.1

174.0
110.0
60.2

175.5
111.9
62.2

175.5
116.9
65.6

17.0

36.6

40.6

44.8

58.3

54.9

57.8

61.9

62.9

69.2

7.5
3.5

24.9
3.4

25.7
3.9

26.5
4.2

28.1
4.6

381.8

413.3

435.9

443.5

460.1

Fiscal years ended March 31

Security Services

Stationed Security Services
Transportation Security Services

General Property Management
and Fire Protection Services
Long-Term Care Services

1

Other Services

Total

ー
4.7

279.2

ー
4.0

304.7

ー
3.0

315.5

ー
3.2

328.2

ー
6.2

365.7

1. Long-Term Care Services was converted to a reportable segment in the fiscal year ended March 31, 2017, and accordingly net sales amounts for this segment are displayed separately from the fiscal year ended March 31, 2016, and onward.
Net sales amounts for the fiscal year ended March 31, 2015, and prior are included under “Other Services.”

Net Sales by Client Type
Billions of yen
Fiscal years ended March 31

Business corporations
Financial institutions
Public institutions
Individuals2

Total

2011

160.9
88.3
19.3
10.6
279.2

2012

178.4
90.7
20.5
14.9
304.7

2013

186.5
89.8
22.0
17.1
315.5

2014

196.7
90.5
22.8
18.0
328.2

2015

224.9
91.3
26.4
22.9
365.7

2016

234.3
92.3
26.2
28.9
381.8

2017

2018

2019

244.9
91.7
29.7
46.8
413.3

263.6
92.0
31.5
49.0
435.9

271.2
91.4
31.2
49.7
443.5

2020

282.9
93.2
32.2
51.6
460.1

2. Sales of HOME ALSOK APARTMENT AND CONDOMINIUM PLAN® and HOME ALSOK MIMAMORI SUPPORT® have been included under “Individuals,” even for contracts in which the customer is a business corporation or government office.

Number of Contracts
Contracts
Fiscal years ended March 31

2011

Security Services

Electronic Security Services 541,654

396,580
Individual Users
145,074
Stationed Security Services
2,866
Transportation Security Services 39,065
Corporate Clients

General Property Management
and Fire Protection Services 44,212

Long-Term Care Services3
Other Services

Total

ー
8,307

636,104

2012

2013

2014

2015

2016

2017

2018

2019

2020

580,263406,261
174,002
2,934
48,284

630,977
422,676
208,301
3,020
51,698

677,672
440,028
237,644
3,227
55,420803,601
463,053
340,548
3,597
59,134854,083
478,925
375,158
3,871
62,146888,955
493,035
395,920
4,213
65,755922,928
508,374
414,554
4,357
72,454

949,858
520,942428,916
4,485
75,652

973,066
533,733
439,333 4
4,468
77,79147,91354,90363,00473,89881,90889,67098,044104,254

109,697

12,804
18,217

22,62822,285

21,23425,26325,36425,89624,976
29,382

ー
8,957

688,351

ー
11,989752,587ー
13,725
813,048

ー
22,477

962,707 1,033,029 1,093,506 1,144,280 1,185,509 1,219,380

3. Long-Term Care Services was converted to a reportable segment in the fiscal year ended March 31, 2017, and accordingly the number of contracts for this segment is displayed separately from the fiscal year ended March 31, 2016, andonward. The number of contracts for the fiscal year ended March 31, 2015, and prior is included under “Other Services.”
4. If contracts for individual households in housing complexes are included, this figure would be approximately 1,210,000.

49Corporate Information/Stock Information (As of March 31, 2020)

Distribution of Shares by Shareholder Type

Corporate Information
Corporate Name
Head Office
Established
CapitalFiscal Year-End
Employees
Business Operations

SOHGO SECURITY SERVICES CO., LTD.
1-6-6 Motoakasaka, Minato-ku, Tokyo
107-8511, Japan
July 16, 1965
¥18,675 million
March 31(Consolidated) 37,902(Non-consolidated) 11,704
Head Office/64 Branches/37 Offices/252 Sales
Offices/75 Consolidated Subsidiaries (Including
10 Overseas Subsidiaries)/10 Companies
Accounted for by the Equity Method

Stock Information
Total Number of
Shares Authorized
Number of Shares Issued
Number of Shareholders
at the End of the Preceding
Fiscal Period
Stock Listing
Securities CodeMinimum Trading Lot

300,000,000
102,040,042(including 782,041 shares of treasury stock)

11,189First Section of Tokyo Stock Exchange
2331
100

Stock Chart

Securities Companies 0.4%

Treasury Stock
0.8%

Financial Institutions
35.4%

Individuals
and Other
18.1%
Foreign Investors
21.4%

Domestic Corporations
24.0%

Major Shareholders (Top 10)
Number of Controlling
Shares Held
Share
(Thousand shares) (%)

Name

SOHGO CORPORATIONThe Master Trust Bank of Japan, Ltd. (Trust account)
Saitama Kiki Co., Ltd.
Japan Trustee Services Bank, Ltd. (Trust account)
Trust & Custody Services Bank, Ltd.
(as trustee for Mizuho Bank Ltd.
Retirement Benefit Trust Account re-entrusted
by Mizuho Trust and Banking Co., Ltd.)
Kamakura Corporation
Employees Shareholding Association
Kizuna Corporation
Atsushi Murai
STATE STREET BANK AND
TRUST COMPANY 505223

7,388
5,590
5,283
5,029

7.29
5.52
5.21
4.96

4,261

4.20

4,150
3,853
2,950
2,885

4.09
3.80
2.91
2.84

2,829

2.79

Note: Each controlling share is calculated based on the total number of shares excluding the number of treasury stock(782,041 shares).

（Yen）
8,000

24,000

6,000

4,000

2,000

（Yen）

18,000

Nikkei Stock Average

12,0006,000

Our Closing Price (Left axis)00（Thousand shares）
18,000
Trading Volume

12,0006,000
02010/3

2011/3

2012/3

2013/3

2014/3

2015/3

2016/32017/3

2018/3

2019/32020/3

ALSOK is a Tokyo 2020 Official Partner.
In October 2015, ALSOK concluded an agreement with the Tokyo Organising Committee of the Olympic andParalympic Games to become a Tokyo 2020 Official Partner in the category of “Security Services and Planning.”
The Company has long contributed to the promotion of sports in Japan by producing many of the athletes who haverepresented the country in such Olympic sports as judo and wrestling. Leading up to Olympic and Paralympic GamesTokyo 2020, we will continue to support the efforts of our athletes. During the event itself, we will contribute to theevent’s success through rigorous security provided by an all-Japan team.

50

SOHGO SECURITY SERVICES CO., LTD.
1-6-6 Motoakasaka, Minato-ku, Tokyo 107-8511, Japan
URL https://www.alsok.co.jp/en/
IR OfficeCSR Office

TEL +81-3-3423-2331
FAX +81-3-3470-1565
TEL +81-3-3470-1972
FAX +81-3-5411-1636

・ ALSOK Guard System, AMAND SYSTEM, TAKURUS, ALSOK ANSHIN KYOSHITSU, REBORG, and HOME ALSOK MIMAMORISUPPORT are registered trademarks of SOHGO SECURITY SERVICES CO., LTD.