ALSOK REPORT 2021
Fiscal Year Ended March 31, 2021

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 our customers and of society as a whole.
Code of Conduct

Management Guidelines

1. Fundamental Spirit
Under any condition that we face, we work hard to live by afundamental spirit that reflects our management philosophy—
as exemplified by a feeling of gratefulness and gratitude and asamurai spirit based on toughness, fairness, and generosity—
to be a highly principled company.

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

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

1. We will devote ourselves to serving ourcustomers and society as a whole in a way thatreflects a feeling of gratefulness and gratitude.
2. We will embody a samurai spirit in everything
we do based on toughness, fairness, andgenerosity, standing firm in the face of adversity
and banding together to embrace 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 deliveringresults.
4. We will carry out our day-to-day activities basedon 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 tocustomers and to society as a whole, thereby
continuing to be relevant.
6. We will pursue perpetual self-improvement andremain highly committed to compliance, thereby
attracting and nurturing human resources of thecaliber worthy of the industry leader.

ALSOK’s Four Principles:

Sincerity, Accuracy, Strength, and Speed

The ideal security company, as envisioned by our founder

Sincerity

Strength

The Sun Symbolizes Sincerity

The Eagle Symbolizes Strength• The lifeforce of a security company• Fulfilling the important mission of protecting clients’
lives and property• Strong-minded

Accuracy

Speed

The Rod Symbolizes Accuracy• Professional security services must be accurate,
and must never be muddled

01

Company emblem

The Laurel Leaves Symbolize
the Speed of an Olympic Champion• Security services must always be implemented rapidly—This is a core requirement of security

Message from the Chairman

Value That the ALSOK Group
Needs to Provide to SocietyFirst of all, my thoughts are with all the victims of thecurrent COVID-19 pandemic and I would like to express
my sincere sympathies for those who have been infectedwith the disease.
ALSOK was founded in 1965, led by the experience of thefounder who was a former police bureaucrat and was
deeply involved in the operations of the 1964 Tokyo
Olympic Games. Our corporate philosophy when the
Company was first established emphasized “arigato no
kokoro” (a feeling of gratefulness and gratitude) and “bushi
no seishin” (a samurai spirit), and this philosophy is thefundamental spirit that underpins our operations, basedon which we have done our utmost every day to ensure
the safety of our customers and of society as a whole. To
this day, 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.

This year, the Olympic and Paralympic Games Tokyo
2020 were finally held. Holding true to ALSOK’s founding
philosophy, we were able to fulfill our responsibility as arepresentative of the Olympic and Paralympic GamesTokyo 2020 Security Consortium and make a wholehearted
contribution toward ensuring that the Games were held insafety and security for all concerned. Going forward, we
will be building on and refining the experience that wehave gained through our involvement with the Olympics
and Paralympics, and will continue to provide services
based on this experience to all our clients.

In recent years, the threats facing society have been
growing more diverse, as exemplified by, among others,
crimes preying on children, senior citizens, etc.,
cybercrime and information leakage, intensifying natural
disasters, and the global spread of infectious diseases
and epidemics. As a company responsible for a criticalcomponent of social infrastructure supporting the safetyof society, we devote ourselves to contributing to theresolution of these social issues through our business andto the sustainable creation of corporate value and further
ensuring the safety of people who live in society.
Chairman and Representative Director
Chief Executive Officer (CEO)Atsushi Murai
Note: ALSOK was a Tokyo 2020 Official Partner (Security Services and Planning).

CO NT E NTS
Overview
andVision01

ALSOK Charter/ALSOK’s Four Principles

02

Message from the Chairman

03

Talk with the President

07

ALSOK’s History of Value Creation

09

Financial and Non-Financial Highlights

11

The ALSOK Group’s Business Operations

15

List of ALSOK Products and Services

17

ALSOK’s Value-Creation Model

19

Medium-Term Management Plan (Grand Design 2025)

23

ALSOK’s Strengths

25

Providing Products and Services That Help Resolve
Social Issues

27

ALSOK’s R&D

29

Quality Improvement Initiatives

31

Human Resource Development andSustainability
and ESG33

To Realize a Sustainable Society

35

Sustainability and CSR Management

37

Consideration for the Global Environment

39

Community Contribution Activities

41

Corporate Governance45

Directors, Audit & Supervisory Board
Members, and Executive Officers

Financial
Information

49

Financial Section

54

Corporate Information/
Stock Information/
Editorial Policy

Empowerment Initiatives
ALSOK REPORT 2021

02Overview and Vision

Talk with the President

CROSS TALK

President and Representative Director
Chief Operating Officer (COO)

Yukiyasu Aoyama

Professor,
University of Niigata Prefecture

Atsushi Nakajima

Making ALSOK a Company That Will
Continue to Be Needed in the Future
In the fiscal year ending March 31, 2021, there was still no sign of the COVID-19 pandemic ending. With the impact of
COVID-19 continuing to drag on, the world’s major economies have begun to adjust their existing COVID-19 containment
measures, with the aim of getting economic activity back to normal. Given the easing of restrictions on movement andthe shift toward measures intended to build a post-COVID*1 future, what kind of strategy does ALSOK need to follow? As
we did last year, we have asked Professor Atsushi Nakajima of the University of Niigata Prefecture to share his views on
this topic.

Theme 1

What kind of strategy will ALSOK need to follow inthe “new normal” of coexisting with COVID-19?

Professor Nakajima: The COVID-19 pandemic is showing no sign ofcoming to an end. However, with the emergence of new mutations
such as the Delta variant, the world’s major economies have begun toadjust their existing COVID-19 containment measures. With theintroduction of “vaccine passports” and measures to make COVID-19
vaccines mandatory for medical professionals, countries are easing
the restrictions on movement while still maintaining broadly the sametypes of pandemic countermeasures as before. The change in course
toward trying to balance measures to prevent infections witheconomic recovery is based on the assumption that, over the longterm, COVID-19 is unlikely to be completely eliminated. As a result of
this change, Europe and North America are continuing to see an
upturn in economic activity.
It was against this background that the Olympic and Paralympic
Games Tokyo 2020 were held this year. While there were divergent
opinions as to whether the games should have gone ahead, one canstill take the view that Japan’s success in overcoming all the obstacles
and holding the Olympic and Paralympic Games despite COVID-19
was a very impressive feat. The fact that the Games were being held
during the middle of the bitter struggle against COVID-19 meant thatthey had to be held without spectators, and that rigorous PCR

03checks, etc., had to be applied to all participants; prior to thecommencement of the Games there were also concerns that theywould exacerbate the spread of COVID-19 within Japan. In the event, I
feel that Japan did a very good job of avoiding increased COVID-19
infection risk, and I think that this was attributable in part to ALSOK’s
hard work.
Aoyama: From a security perspective, the question of how to holdsuch a big event safely and securely, while also eliminating infection
risk, was a major challenge. Not everything went smoothly, but I think
that, in the end, it went quite well, including the bubble isolation
system*2. Arranging security for a large-scale event such as thisrequires a very large number of security guards, and so weparticipated in the formation of the Olympic and Paralympic GamesTokyo 2020 Security Consortium, with ALSOK acting as aco-representative. A total of 553 security firms from all over Japanjoined the Consortium, mobilizing a total of approximately 470,000
people, and it was clear that the successful holding of the Games
without any serious trouble was due to the shared sense of mission
displayed by the security sector as a whole. Going forward, given theneed to balance measures to prevent infections with economic
recovery, we can assume that restrictions on movement will be eased.

*1 Post-COVID: The period in which the transformation of values and modes of behavior resulting from the global COVID-19 pandemic take root in society.
*2 Bubble isolation system: An infection prevention method whereby the movement and residence of athletes and other related parties is confined to a specified area, and contact withthe outside world is avoided to the maximum possible extent.
* ALSOK was a Tokyo 2020 Official Partner (Security Services and Planning).

The experience of organizing security for the Olympic and Paralympic
Games Tokyo 2020 under the COVID-19 crisis will represent an
important legacy for us, and I think it is extremely crucial to discuss
how this experience can be utilized for self-protection, both at thecorporate level and at the level of individual citizens.
Nakajima: The idea of working toward a “post-COVID” world
appeared in Europe and North America earlier than it did in Japan.
While people are already being encouraged to avoid the Three C's(confined and enclosed spaces, crowded places, and close-contact
settings) and to minimize face-to-face contact with others, in the era of“living with COVID-19,” I think that there will be a need for discussionof further digital countermeasures, and for further progress based on
this discussion.
Aoyama: Now that variant strains of COVID-19 have been confirmed,
our company has been exploring, since last year, what can be doneto help revitalize economic activity while coexisting with COVID-19.
During the COVID-19 pandemic, the most important thing we can doto ensure the safety and security of our customers is to prevent themfrom being affected by COVID-19, and to this end we have been
discussing what kind of assistance we can provide. Actually, besides
providing COVID-19-related products such as thermal imaging
cameras, photocatalytic air purifier and sterilization devices, and PCR

Theme 2

test kits, we have been implementing a wide range of different typesof support, including providing security services for quarantine
facilities for people with mild COVID-19 symptoms, vaccination
centers, etc.
Given that the security business and building maintenancebusiness operate in the physical world, there are inevitably some
aspects of them that are difficult to digitalize. Nevertheless, we havebeen rolling out the ALSOK Ventilation-Facilitating Solution, whichlinks the ALSOK-G7 Electronic Security System with environmental
sensors capable of measuring carbon dioxide concentration to notify
users of ventilation status, as well as the ALSOK Congestion Status
Distribution Service, with which, using security camera images,
updates on crowding status of stores and facilities (i.e., whether an
area is becoming overcrowded) can be easily sent to a facility’s official
website or to digital signage. And we have been promoting thedevelopment of our non-face-to-face sales operations using online
business discussions, etc., and the expansion of distance learningof our employees and the provision of more efficient ways of
construction work. Going forward, we will also be working tocustomize the products and services that we provide.

What is the “creative destruction”*3 that will transformthe security business to respond to the “post-COVID” era?

Nakajima: Going forward, the shift toward the digital economy andthe green economy will become even more pronounced.
While I get the impression that Japan has been rather slow off themark in digitalizing its economy, in Europe and North America digitaltransformation (DX) is accelerating. For example, the European Union(EU) is implementing GAIA-X,*4 a project to build a common, EU-wide
digital economy platform. This project will enable all data to be stored
in the same format; the idea is to create a platform that allows big data
to be used with maximum effectiveness without being dependent
on private companies such as Google. It is no longer a case ofcompeting on individual digital technologies; the building of GAIA-X isa concept that will have a game-changing impact in the era of thedigital economy.
At the same time, as regards the development of the green
economy, the world’s leading economies (including Japan) need torespond to global warming, which is proceeding faster than originally
expected, and the target year for becoming a net zero emissions
country, which was originally set for the second half of the 21st
century, has now been moved forward to 2050.
Aoyama: There are many aspects of the security business that ourcompany has been involved in for the past 57 years which now
seem old-fashioned, and we need to transform these areas in a
revolutionary manner. The keywords for achieving this goal, as I see it,
are digital, safety and security, and going green. With the spread ofteleworking (working from home) and remote working, cybersecurity
needs have grown, and there is considerable discussion regarding the
growth of cashless payments and the adoption of digital currencies.
The environment in which our company operates is being dramaticallytransformed. In response to this change, in our individual
businesses—including security, facility management, and long-termcare—we need to generate new demand from a customer-focusedstandpoint at the level of the individual customer, and need to offer
services that provide safety and security from a new perspective.

Taking our security services as the core element, this is the time for us
to redefine and adjust the services that we implement, to provide
customers with safety and security that go beyond the conventional
scope of security services, and aim to bring about a transformation of
our business.
Nakajima: The current pandemic is a natural disaster. While it hasn’t
damaged machinery directly, it is a fact that, for us as people who
use machines, the pandemic has caused harm to how we think, how
we live, and the way in which our society operates. I think that, if we
can overcome this situation, then that, in and of itself, will lead tocreative destruction.
When it comes to DX, it is not a matter of competing on individual
digital technologies or on adoption rates or installation rates; rather, it
is a case of dramatic change brought about by applying newly
generated technologies to needs that have emerged in a completely
new area. I get the feeling that this is what is starting to happen now.
ALSOK is providing services based on an architectural approach, andI hope this will rapidly generate major changes.
Aoyama: In the future, with the trend toward digitalization and goinggreen, new businesses, frameworks, and services will emerge, and therange of areas where we can help to ensure customers’ safety andsecurity will expand. As to how the processes of digitalization andgoing green will proceed, ultimately, it is the provision of services
by people that will help to ensure the safety and security of local
communities. ALSOK will be supporting these developments ina variety of different ways.

*3 Creative destruction: A concept advocated by the economist Joseph Schumpeter, whereby new, efficient equipment and methods drive out old, inefficient equipment and methods,
replacing them and in doing so stimulating economic growth.
*4 GAIA-X: An infrastructure concept announced by the German and French governments to support the flow of data while safeguarding security and data sovereignty.
* ALSOK was a Tokyo 2020 Official Partner (Security Services and Planning).

ALSOK REPORT 202104Overview and Vision

Talk with the President
Theme 3

Responding to society’s diverse needs for safety and security

Nakajima: I feel that, besides the “post-COVID” era, we also need tothink about how we can move forward steadily based on the “newnormal” in the situation of “living with COVID.” How do you feel
about this?
Aoyama: The Grand Design 2025 (GD2025) Medium-Term
Management Plan (FY2022–FY2026) which was formulated this fiscal
year outlines ALSOK’s vision for the next five years, a period which will
either be “post-COVID” or “living with COVID.” In this plan, in regard
to the changes in the environment that surrounds ALSOK, including
our customers and society as a whole, we recognize three maincategories of problems: global issues, such as infectious diseases,
global warming, energy problems, etc.; issues in Japan, such as thedeclining birthrate and aging population, and growing disparities in
wealth and income; and issues relating to the development ofadvanced technology, such as the growth of artificial intelligence (AI)and the Internet of Things (IoT), 5G and 6G communications
technology, etc. The plan takes account of Japan’s goal ofcontributing toward the realization of the Sustainable Development
Goals (SDGs) and realizing a reduction in greenhouse gas emissionsof at least 46% by 2030 (compared to fiscal 2014), and of becoming acarbon-neutral nation by 2050.
While promoting the innovation of the security business model,
ALSOK is aiming to become a resilient integrated safety and security
solutions provider. I believe that we need to strengthen the internaland external infrastructure that we have cultivated in our security,
facility management and care businesses, and create new solutions
that integrate diverse service functions. While we have already been
involved in areas such as open innovation, using collaboration with theuniversity sector and alliances with other enterprises, we need to beworking with people at other companies with which we are on goodterms to undertake an evolution in terms of what products andservices we can provide to each market, strengthen our ability torespond to the risks experienced by different customers, and expand
into new business areas with security at the core. In this way, bycontinuing to provide concrete solutions for the specific situations that
customers are exposed to on a daily basis, we will continue to be an
enterprise that is needed by the next generation and that creates value.
I also feel that it is very important to build a working environment inwhich employees can fulfill their potential. We have already started byholding discussions regarding diverse work styles, and I want us tocontinue with thorough implementation of emphasizing that people

are the most important thing for us, and with undertaking talentcultivation in a variety of different forms.
Nakajima: I know you have said that “People are at the heart of the
security business,” Mr. Aoyama, and I think it is fair to say that people
are the single most important asset. Whether it is dealing with the
pandemic or responding to creative destruction, ultimately, it is people
who get things done. Over the past 20 years, the ordinary income ofJapanese companies as a whole has risen by 150%, whereas average
wages per person have fallen by 10%. I think one can reasonably saythat it is impossible to boost corporate value without increasing
investment in human talent cultivation. In a country like Japan withlimited natural resources, I believe that, in order to activate thecountry’s latent potential, enhancing the capabilities of its humantalent is the ultimate engine for economic growth.
Aoyama: That’s very true. And that is why I want us to pay even more
attention to human talent diversification and capability development
than we do at present. In combination with efforts to enhance themotivation of our employees working as operatives in the security(including electronic security, stationed security, and transport
security), facility management and long-term care businesses, inorder to enhance productivity in these services, we will be striving
to implement effective talent cultivation, in terms of recruitment,
education and training, and we will roll out these efforts on a global
basis. I also want us to strengthen our sustainability initiatives. As I
see it, the content of the SDGs represents the concrete embodimentof how to promote our corporate mission in line with the Company’s
management philosophy of emphasizing “arigato no kokoro” and“bushi no seishin.” Particularly with regard to environmental issues, weare aware that these are issues that affect the whole of humanity, andwe are contributing toward the realization of carbon neutrality and of
the resource-circulating economy from three perspectives: reducing
greenhouse gas emissions, the resource-circulating economy andsociety, and biodiversity.
Nakajima: I think that a security industry that uses security to provide
integrated services for ensuring safety and security will be a “21stcentury growth industry” in the post-COVID era. You need to think
about what you need to achieve next and move forward steadily, one
step at a time, and if you do this properly, I am sure it will lead to
growth. I find it very reassuring to know that ALSOK is taking the leadby following this path.
Aoyama: The COVID-19 pandemic has led to a dramatic

Yukiyasu Aoyama
Profile

March
April
July
July

1975
1975
1980
1992
1993

July

1994

August
June

1995
2000

July
July

2002
2003

December 2005
2006
July
2008
July
2008
August
2009
June
2010
April
2012
April

05

Graduated from the University of 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, Planning and
Coordination Bureau, Environment Agency
Director-General, Yokohama Customs
Counselor and Deputy Director-General of the Customs andTariff Bureau of the Minister’s Secretariat
Visiting Professor at the University of Tokyo
Director-General, Customs and Tariff Bureau
Retired from the post
Joined the Company as Senior Executive Officer
Executive Vice President and Representative Director
Senior Executive Vice President and Representative Director
President and Representative Director (Current)

CROSS TALKtransformation in the environment in which our company operates.
These changing circumstances have been accompanied by thegrowth of diverse safety and security needs, and it is vital that we
respond to these needs by putting ourselves in the customer’s place,looking ahead, and emphasizing speed. We will be aiming to realize
our vision of being a “resilient, integrated safety and security solutions

provider” by strengthening our foundations, ensuring that all
employees are working as one, and moving forward steadily. Thankyou very much for the valuable opinions that you have shared with
us today!

Postscript to the Dialogue

Overcoming the COVID-19 Pandemic
It is now nearly two years since the COVID-19 pandemic developed
into a full-scale pandemic. ALSOK is committed to providing
customers with resilient, integrated safety and security solutions, and thismission has remained unchanged during COVID-19; every day, we havecontinued to do our utmost in locations both within and outside Japan.
Having been postponed for a year, and despite the rapid increasein the number of people infected with COVID-19 due to the emergenceof the Delta variant, the Olympic and Paralympic Games Tokyo 2020
were held successfully in 2021, thanks to the hard work of all theauthorities concerned. On the security side, the 553 member
companies of the Olympic and Paralympic Games Tokyo 2020
Security Consortium worked together as one with a common strategy,
which I found deeply gratifying. Although the Games were held
without spectators, nevertheless, they could not have been held
successfully without the hard work and dedication of a wide range ofrelated parties (in ALSOK’s case, handling security and facility
management). Based on the results achieved with the Olympic andParalympic Games, I asked Professor Nakajima to follow on from lastyear’s dialogue with a further discussion, so that we could reconfirm
the validity of the strategy that ALSOK is following.
As Professor Nakajima pointed out, Europe and North America
have already taken the lead in terms of preparing for the “post-COVID”
era. Regarding the acceleration of DX, or in other words thedigitalization of the economy, we are starting to see some concretemeasures in Japan, including the promotion of remote working during
the COVID-19 pandemic, and the establishment of the Digital Agency
within the Japanese government in September 2021. Japan is also
finally starting to get serious about the greening of the economy, andwith the formulation of a new energy policy to meet the goals of
making Japan carbon neutral by 2050 and reducing carbon dioxide
emissions by at least 46% by 2030 (compared to fiscal 2014) thatwere announced at the COP26 international conference in 2021, forevery sector in Japan, there is no time to waste.

ALSOK was founded in 1965. Social and economic conditions,both within and outside Japan, were much different at that time fromthe current situation in the 21st century. In Japan, the declining
birthrate and the aging of the population have accelerated, and thenation’s population structure is undergoing dramatic change. Other
major transformations include labor shortages, the depopulation ofrural areas and increasing concentration of the population in the major
cities, and resource and environmental constraints. It has become
apparent that Japan’s overall economic strength has weakened, andthe competitiveness of individual enterprises is significantly changed.
We are also in the middle of a major transformation in technology,
including the widespread adoption of AI and the transition to 5G and
6G communications technology. Regarding the international situation,
the end of the Cold War was followed by the emergence of amultipolar global economy characterized by regional economic
integration, which in turn was followed by an upsurge in regionalism
and the revival of Islamic fundamentalism, and then by the proliferationof terrorism, the rise of China and friction between the U.S. and China.
The COVID-19 pandemic emerged against the backdrop of thesedramatic changes in the international situation. It is precisely because
we are living through a period of this kind that Schumpeter’s “creative
destruction” is happening, without people necessarily being aware ofit, in the era of “living with COVID” and “post-COVID.” I hope that we at
ALSOK can play at least a small role as pioneers in this process andas a platformer of the SDGs. As Professor Nakajima noted, the
ALSOK Group attaches great importance to people, and has beenproactively investing in human capital cultivation. I hope that, by
working steadily to provide safety and security solutions not only inJapan but also in other Asian countries, we can further enhance theway ALSOK is viewed.

Yukiyasu Aoyama

President and Representative Director, ALSOKAtsushi Nakajima
Profile

March
April
August
April
May

1975
1975
1987
1992
1995

Graduated from the University of Tokyo, Faculty of Law
Joined the Industrial Bank of Japan, 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
June
1997
Deputy General Manager, General Manager, IBJ Paris Branch
October 1999
President, Banque IBJ (France) S.A.
June
2000
Chief Economist & General Manager, Research Department,
Head Office, IBJ
April
2002– Executive Officer & Chief Economist, Mizuho Research Institute Ltd.; Chief
March 2003 Economist & General Manager, Research Division, Mizuho Corporate Bank
March 2003– Executive Officer, Chief Economist & General Manager, Research Division,
March 2004 Mizuho Corporate Bank; Executive Officer & Chief Economist, Mizuho
Research Institute Ltd.
April
2004– Senior Managing Executive Officer & Chief Economist,
March 2011 Mizuho Research Institute Ltd.
April
2011
Chairman, Research Institute of Economy, Trade and Industry (RIETI), IAA
April
2020
Professor, University of Niigata Prefecture (Current); Consulting Fellow,
RIETI, IAA (Current)
June
2020
Chairman, Maison franco-japonaise (Current)* ALSOK was a Tokyo 2020 Official Partner (Security Services and Planning).

ALSOK REPORT 202106

Overview and Vision

ALSOK’s History of Value Creation
Helping to Address Social Issues by Taking on Advanced Challenges
and Demonstrating Originality
Since its foundation, ALSOK has consistently endeavored to protect the safety and security of society.
Throughout its history of more than half a century, ALSOK has pursued technologies in security services,
service quality, and education of human resources, and has taken them as its strengths. We will continue totake on advanced challenges and demonstrate originality to help resolve social issues.

¥120.1 billion

Net Sales■■■■ Net Sales of Security Services■■■■ Net Sales of Services Other Than Security Services¥40.1 billion¥0.15 billion¥0.7 billion

1966

1971

1976

1981

1965–

1986

1991

1996

1985–

Founding Era

Building Up and Maintaining Era

1965

Foundation of
Sohgo Security
Services Co., Ltd.
with the main
business purposeof providing
contract security
services

1988

Developed and launched
TAKURUS ® in electronic
security services for individual
customers

1995

Began use of the Tokyo Operations Center,
which provides centralized monitoring andcommand for Electronic Security Services
provision within Tokyo

1997

Developed and launched the MMK® multifunctional ATM,
which integrates such functions as receiving agent anddata search functions with conventional cash dispenser
functionality

1966

Began provision of transportation
security services

1967

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

1998
1970

Provided stationed security for Japan
World Exposition, Osaka 1970

07

1975

Developed and launched the OLM
SYSTEM ®, which integrated devices
capable of facility control and monitoring
into stationed security

1997

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

Developed and launched SOKHome Security system
featuring convenient functions
for daily life, including first aid
information, home banking,and health consultation, in
addition to crime and disasterprevention security functions

¥469.9 billion¥279.2 billion¥248.3 billion¥181.2 billion

GD2020GD2017
2001

2003(Stock listing)

2006

2011

1999–

2021

2016

(FY)

2010–

Second Founding Era

Third Founding Era
2012

Launched new HOME ALSOK brandof services for individual users

2013

2002

Launched HOME ALSOKMIMAMORI SUPPORT® emergency
reporting and consultation service
for senior citizens

2003

Listed stock on the first section of
the Tokyo Stock Exchange

Established the new corporate
brand, “ALSOK”

2015

2005

Expanded the ALSOK ANSHINKYOSHITSU crime prevention classprogram to cover the whole of Japan,
with ALSOK staf f (who are exper ts
in ensuring safety) assigned to giveclasses in schools, with the aim ofhelping to keep children safe

2005

Developed and launched a
new automated patrolling
GUARD ROBOT, making it
possible to provide Stationed
Security Services thatincorporate robots

Developed and launched a new
Cash Deposit and Dispenser
Machine Online
System, enabling
the payment andchanging of smallchange used instores, and enabling
store owners todeposit sales
proceeds without
needing to take themoney to the bank2020

Launched renewed HOME ALSOKMIMAMORI SUPPOR service towatch over2020

Began handling Central Monitoring System businessthrough a capital and business alliance agreementwith Mitsubishi Corporation

Entry
management

2005

Developed and launched ALSOKHOME SECURITY X7, withexpanded functionality for large
residential properties

2008

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

Electric powerusage monitoring

2020

Launched the ALSOK-G7 (read as “ALSOK
G-seven”) security system for corporateclients

Lighting control

Security

CentralMonitoring
SystemFire prevention
equipment
Air conditioning
control

ALSOK REPORT 2021

08

Overview and Vision

Financial and Non-Financial Highlights

Net Sales

Profit Attributable to Owners of Parent¥469.9 billion
Up

2.1% YOY¥25.0 billion
Up

Ordinary Income

Payout Ratio

29.1%¥39.2 billion
Up

0.9

% YOY

9.6%
0.5

YOY

percentage
point

YOY

Capital Investments¥13.6 billion¥15.8 billion

Number of Electronic Security Services Contracts(Corporate Clients and Individual Users)

8.6%
09

0.2

Depreciation and Amortization
percentage
point

ROA

Down

Down

Capital Investments and Depreciation
and Amortization

ROE

Down

3.5% YOY

0.7

Corporate Clients

540,410449,745

Individual Users
percentage
point

YOY

E 0.177

CO2 Emission per Sales Unit (Group)*

Environmental

Up

t-CO₂/¥ million

0.3% YOY

CO2 Emissions Volume(Group)*Net Sales

83,302 t-CO2/¥469.9 million
Up

2.5% YOY

S

16,942 kl
Electricity Consumption (Group) 66,260 MWh
Fuel Usage (Group)

Number of Employees(Consolidated)

Number of Residents inLong-Term Care Facilities

38,444

Female Employees(Consolidated)

SocialApprox.

6,200

Number of Users ofLong-Term Care and Other Services

Up5,465 8.93

% YOY

Approx.

21,400

Proportion of Women in
Management Positions(Non-Consolidated)

Number of Employees
Who Completed First-Aid Training

Number of Participants in
ALSOK ANSHIN KYOSHITSU ®
Crime Prevention Classes

4.0%

Cumulative Total

Cumulative Total

20,434(Including Both Basic and Advanced Training)

G 16

Number of Directors and Audit & Supervisory Board Members

1,633,000
Number of Group Companies That
Used the Internal Reporting System

73

Governancecompanies
Directors 12(of whom 4 are outside directors)

Number of Group Companies That
Have ISO 27001 (ISMS) Certification

19

companies

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

Directors’ Rate of Attendance atBoard Meetings

100%

Number of Incidents of
Non-Compliance0* The Group's CO2 emissions are calculated on a non-consolidated basis. The reported values may change in the future due to a review of the aggregation method and scope.

ALSOK REPORT 2021

10

Overview and Vision

The ALSOK Group’s Business Operations

A Transformation of the Security Business Model
警備ビジネスモデルの変革
Expanding the Scope of Our Services, and Aiming to Provide Resilient,
サービス領域を拡大し、強靭な「綜合安全安心サービス業」
を目指す
Integrated Safety and Security
Solutions

Security Services
Electronic Security Services(Billions of yen)

200

150

Sales Composition

Net Sales¥176.5 0.5

Up

37.6%

50

% YOY

billion0

Stationed Security Services

2020

2021

(FY)

2019

2020

2021

(FY)

2019

2020

2021

(FY)

200

Sales Composition¥113.1 3.2

Down

24.1%

150

100

50

% YOY

billion0

Transportation Security Services(Billions of yen)

100

Sales Composition

Net Sales¥65.8 0.4

Up

% YOY

11

2019

(Billions of yen)

Net Salesbillion

100

14.0%

75

50

25

0

After being postponed for one year, the Olympic and Paralympic Games Tokyo 2020 were held in 2021. Although some service industries are still
experiencing difficulties due to the impact of the COVID-19 pandemic, there is growing demand for safety and security, including infection prevention
measures, particularly in the manufacturing sector, where there has been a noticeable improvement in sales performance. Going forward, it can be
anticipated that the trend toward the return to normal of economic activity, including consumer spending, will accelerate, driven by factors such as
more widespread vaccination and the development of new medicines.
Given this business environment, as an enterprise that provides services relating to the safety and security of society (including security services,
general property management, disaster preparedness services, and living support services for senior citizens) that are vital for ensuring the stabilityof people’s lives and of the national economy, the ALSOK Group is continuing to provide appropriate services while taking all necessary infection
prevention measures, and is also promoting a transformation of the security business model in response to the growing need for safety and security
in a society where risks are becoming increasingly diverse. Aiming to provide resilient, integrated safety and security solutions, ALSOK will bestrengthening its ability to meet the safety and security needs of our customers and of society as a whole, taking on digitalization and utilizationof data, building a working environment in which our employees can maximize their potential, and strengthening sustainability initiatives.
Summary of Japanese Security Services Industry(as of December 31, 2020)

Number of Reported Cases of Crimes and Buildings Introducing
Electronic Security Services

Number of Security Services Companies(Cases)Approx.

10,100■ Number of reported cases of crimes (Total)■ Cases of intrusion and theft among the number of reported cases of crimes
Buildings introducing electronic security services■

3,176,544

3,500,000

3,000,000

companies

2,500,000

2,000,000

Total Net Sales

Number of Security Guards

Approx.

Approx.

1,500,000¥3.5 590,000
trillion

614,2311,000,000

500,000

44,0930(of whom 39,000 are females)

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020 (Year)

Source: National Police Agency, Crime statistics materials (January 2020–December 2020); Overview of the Security Industry in 2020.

General Property Management andFire Protection Services(Billions of yen)

100

Sales Composition

Net Sales¥68.1
billion

Down

14.5%

1.5% YOY

75

50

25

0

Long-Term Care Services

2019

2020

2021

(FY)

2019

2020

2021

(FY)

2019

2020

2021

(FY)

(Billions of yen)

50
40

Sales Composition

Net Sales¥40.3 43.7

Up

8.6%

% YOY

0

Other Services(Billions of yen)

6

Sales Composition

Net Salesbillion20
10

billion¥5.8 26.0

30

Up

1.2%

4

2

% YOY
0

ALSOK REPORT 2021

12

Overview and Vision

The ALSOK Group’s Business Operations

Security Services
Electronic Security Services
For corporate customers, we are promoting sales of ALSOK-G7, a service which incorporates live
video feed monitoring as a standard feature.
During the COVID-19 pandemic, besides providing the ALSOK Ventilation-Facilitating Solution,
which allows automated control of ventilation fans, etc., by adding environmental sensors formeasuring CO2 concentration to ALSOK-G7, we also responded to the growing demand from store
and facility users who wanted to be able to avoid crowds, by launching the ALSOK Congestion Status
Distribution Service, with which, using security camera images, updates on crowding status of storesand facilities (i.e., whether an area is becoming overcrowded) can be easily sent to a facility’s official
website or to digital signage. We also now provide the ALSOK Fingerprint Authentication Card, which
incorporates a fingerprint authentication function into a contactless IC card, thereby contributing
toward infection prevention and also preventing unauthorized use in the event that the card is lost or
stolen.
For individual customers, we provide Home Security Basic, a service designed for ordinary
homes that makes it possible to activate and deactivate security using a smartphone or other mobile
phone, and which allows the user to select different security modes, depending on whether they areout or at home. HOME ALSOK Premium adds outdoor video image monitoring to these functions,while HOME ALSOK Apartment and Condominium Plan is designed for multi-unit housing. For seniorcitizens, we provide HOME ALSOK MIMAMORI SUPPORT, which adds emergency reporting andtelephone health consultation service functions, and MIMAORI TAG, which enables people to keep
track of the location of those that matter to the user.

Operational Flow for Rushing to the Scene
Alarmtransmission

ALSOK Guard Center
Surveillance system

Customer site information

Dispatch order

Continuously acquire location
information using GPS

Customer site

Rushing to
the scene

Mobile terminal

Guards are sent quickly
Destination information is sent fromfrom guard depots the mobile phone to the car navigation system

Besides stationing security guards at clients’ facilities to handle
entry management, patrolling, monitoring, and emergency
response, we also provide security for events such as international
conferences, sporting events, parades, etc. In addition, theadoption of the ALSOK Staff Cooperation System enables us to
implement faster, more efficient service. We also provide a wide
range of other security services, including personal security fordomestic and international celebrities, companies’ senior

13

Progress information

Nearest security
guard

Stationed Security Services

managers, etc.

Dispatch instruction

ALSOK’s Dispatch System

Transportation Security Services
In addition to our cash transport services, which ensure safe transport of cash,
securities, etc., we offer total operation and management services that include
the Cash Deposit and Dispenser Machine On-Lline System that contributes tothe promotion of work-style reforms by providing total support with store sales
management functions and a transport security network, in addition to cash
replenishment and collection, response in case of failure, etc., for ATMs installedin financial institutions and convenience stores. We are also responding to thetrend toward cashless solutions by providing the ALSOK Multi-QR Payment
Solution cashless settlement service, which supports multiple payment types
with a single app and a single terminal device, focused on QR code settlement.

General Property Management and Fire Protection Services
We aim to strengthen the framework through which the ALSOK Group as a whole—including
HOCHIKI Corporation, Nippon Dry-Chemical Co., Ltd., Japan Facilio Co., Ltd., ALSOK SOUEI
Co., Ltd., and ALSOK SHOJITSU SECURITY SERVICE CO., LTD.—provide General Property
Management and Fire Protection Services, undertaking joint development and sale of new
products tailored to meet customers’ increasingly diverse needs.
Besides the signing of an agreement on February 28, 2020 with Mitsubishi Corporation toform a capital and business alliance in the area of facility management (FM) services, we arealso working to further expand our FM services both within and outside Japan, based on theconcept of integrating security with facility management, and with ALSOK Facilities Co., Ltd.,
which was created on April 1, 2021 through a merger of two of ALSOK’s consolidated
subsidiaries, playing a central role.

Long-Term Care Services
Under the “ALSOK’s Long-Term Care” brand, our unified brand for our long-term care services, we
provide a wide range of services, from in-home long-term care support (care plan development)
and in-home care services such as home-visit long-term care, home-visit nursing, and dayservices to support customers’ lives at home, to facility care services, such as daily life long-termcare admitted to a specified facility (i.e., fee-based long-term care facilities), communal daily
long-term care for dementia patients (group homes), and senior residences offering services.
In addition, besides the sale and rental of equipment for long-term care covered by public aid,
we also provide dispatching medical massage service for persons receiving in-home care. We areworking to further expand our services for care providers and our livelihood support services forlong-term care service users and other senior citizens, through a capital and business allianceagreement signed on December 15, 2020 between Mitsubishi Corporation and Nippon Care
Supply Co., Ltd. in relation to the long-term care business and the livelihood support business forsenior citizens, and we are also working to expand the sale of ALSOK Group products andservices by leveraging the customer base of our partner companies.

Other Service
Responding to the widespread adoption of teleworking, we provide a wide range of information security
solutions, including Soliton SecureDesktop Service, a teleworking application with robust security
functions, and ALSOK PC Management Service for IT device management (an area that is becoming
increasingly important).
In addition, ALSOK Group member company MBIC Life Co., Ltd. provides various different testing
services in accordance with the Food Sanitation Act, including intestinal bacteria testing and food safety
testing, testing for contamination by micro-organisms capable of causing food poisoning, etc. We have also
been working actively to provide products and services that can support COVID-19 infection prevention
measures, including COVID-19 infection testing such as PCR testing, and sale of antigen testing kits.
ALSOK REPORT 2021

14

Overview and Vision

List of ALSOK Products and Services

Electronic Security
Services
Transportation
Stationed Security
Security Services
Services

Long-Term Care
Services

General Property
Management and Fire
Protection Services

Security Services

Main Business Areas

For more information,please visit our website.
https://www.alsok.co.jp/en/

Main Products and Services■ ALSOK-G7

Security system that incorporates live video monitoring as a standard feature(ALSOK Ventilation-Facilitating Solution and ALSOK Congestion Status Distribution Service)● Online security■ Home Security BasicThe optimal multifunction system for ordinary homes, including bothcondominiums and detached houses■ HOME ALSOK MIMAMORI SUPPORT

System with emergency reporting and telephone health consultation service
functions for senior citizens added● Assignment of security
personnel to clients● Access control● Patrolling● Monitoring● Security for events● Guarding important people● Transportation of cash andvaluables● Management of store sales
proceeds● ATM cash replenishment andcollection, and dealing with
ATM faults● QR code payment■ Facility Security

Security for clients’ facilities■ Access Control System

Installation of IC card readers, etc., that are capable of operating electric
locking devices at entrances, and implementation of access control■ Cash Deposit and Dispenser Machine On-Line System

Total solution combining store sales proceeds management functionality witha transportation security network■ ALSOK Multi-QR Payment Solution

Cashless payment service which supports multiple payment types witha single terminal device● Building facility repair andrenovation work, plumbing
work, and electrical work
● Fire prevention and disaster
preparedness services● Equipment management
services● Cleaning management
services● Sanitation management
services● Telephone answering services■ Facility Management● In-home long-term care
support● In-home care services● Facility care services● Sale and rental of equipment
for long-term care covered bypublic aid● Dispatch medical massage■ In-Home Long-term Care Support

Comprehensive support, covering fire prevention inspections, telephoneanswering, cleaning management, equipment management, and security
services■ AED

Sale, rental, and management of AED equipment, and training in the use of
AED equipment■ Disaster Response and Infection Prevention Products

Sale of AIR BUSTER (ozone deodorizing device) and thermographic system(for body surface temperature screening), and stockpile management

Care plan development, etc.

■ In-Home Care Services

Home-visit long-term care, home-visit nursing, day services, etc.

■ Facility Care Services

Fee-based long-term care facilities and group homes■ Equipment for Long-Term Care Covered by Public Aid
Sale of aluminum wheelchairs, walking poles, rollators, etc.

■ ALSOK PC Management Service
Other Services

IT device management■ REBORG®-Z

Security robot for facility patrolling and monitoring● Information security● Testing services● Security robot● Consulting services■ ALSOK Safety Confirmation Service

Safety confirmation during and after natural disasters, and health check tools
for use during epidemics■ Animal and Bird Pest Trap Monitoring Device II

Support for protecting agricultural crops, etc., from harm caused by animaland bird pests■ Other

Self-defense training and ALSOK JUKU (career development training making
effective use of the know-how developed in security guard training)

15

Services for Corporate Clients
Electronic Security Services● ALSOK-G7● ALSOK Ventilation-Facilitating Solution● ALSOK Congestion Status Distribution Service

Stationed Security Services● ALSOK Staff Cooperation System● REBORG ®-Z automated patrolling security robot● ALSOK Traffic Control System

Transportation Security Services● Cash Deposit and Dispenser Machine On-Line System● ATM outsourcing service● ALSOK Multi-QR Payment Solution

General Property Management and Fire Protection Services● Facility management● Telephone answering services● Building management and cleaning services● Building management and emergency response● AED sale and management● Disaster preparedness services and energy-saving measures● Examination supervision support services

Services for Individual Clients
Home Security● Home Security Basic● Dedicated apps for Home Security Basic● HOME ALSOK Premium● HOME ALSOK MIMAMORI SUPPORT

Service Plans for Specific Purposes● Wiretapping device and spy camera inspection service● MAMOLOOK● HOME ALSOK RUSUTAKU Service● HOME ALSOK LADY’S SUPPORT● HOME ALSOK HOUSE SUPPORT● Tobilaphone (Automated nuisance phone blocker)● A wide range of long-term care services

Fire Protection and Information Leakage Prevention
Fire Protection● BCP solutions

Disaster simulation exercises, business continuity planning (BCP) anddisaster-prevention manual development support, and BCP anddisaster-prevention manual revision
Disaster-prevention workshop, stockpile management support, Flood Control Act
compliance strategies, and emergency drill support● Safety confirmation service● Stockpile management● POWER YIILE 3 electric power storage system

Information Leakage Prevention● Information security diagnostic service● Targeted email attack response drill service● Network monitoring service● ALSOK PCACS login verification service● Website tampering detection service● ALSOK PC Management Service

ALSOK REPORT 2021

16

Overview and Vision

ALSOK’s Value-Creation Model

Aiming to Become an Integrated Safety andSecurity Solutions Provider to Support the Safety
and Security of Customers and SocietyManagement Philosophy

Risks Surrounding
ALSOK
Spread of an
infectious disease
Occurrence oflarge-scaledisasters, etc.

Based on two core principles exemplified by “arigato
and “ bushi no seishin” (a samurai spirit), we devote
our customers and of society as a whole.
Strengths

Excellent
Human
Resources

P.13

P.13

Organizational
Capabilities

Transportation Security
Services
P.14

General Property Management
and Fire Protection Services

Systemdevelopment
and operation
Information
management

Electronic Security
Services
Stationed Security
Services

Securing andfostering humanresources
Changes intechnologicalenvironment

Business Domain
Services Provided

P.14

Long-Term Care
Services

Trust

P.14

Other Services
Reputational risk

P.14
P.23–24

Environmental
issues

LeagalRegulation

17

E

Environmental
P.37–38

S

Social
P.39–40

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

no kokoro” (a feeling of gratefulness and gratitude)ourselves to protecting the safety and security ofLong-Term Targets

Medium-Term Management Plan
(FY2022–FY2026)

P.19–22To meet the expanding needs for safety
and security needs in a society whererisks are diversifying, ALSOK will promote
the innovation of its security businessmodel and aims to become a resilient
integrated safety and security solutions
provider.
1. Enhancement of response capacity fordiverse safety and security needs of society
2. Digitization and utilization of data
3. Establishing a work environment where
employees play an active role
4. Strengthen the efforts of sustainability

G

Becoming a Resilient
Integrated Safety
andSecurity Solutions
Provider

1

Sales

¥

trillion

Income¥100 billion

Governance
P.41–44

ALSOK REPORT 2021

18

Overview and Vision

Medium-Term Management Plan (FY2022-FY2026)

Grand Design 2025
Medium-Term Management Plan (FY2022–FY2026)

ALSOK’s Aim
To meet the expanding needs for safety and security in a society where risks arediversifying, ALSOK will promote the innovation of its security business model andaims to become a resilient integrated safety and security solutions provider.

Basic Policies

1

Enhancement of Response Capacity for Diverse Safety
and Security Needs of Society■ Enhancement of Inside and Outside Infrastructure Cultivated by the Security Business and Facility
Management Business, and Construction of Solutions through a Combination of Various Services■ Prompt Development of Products and Services Assimilating New Technology

2

Digitization and Utilization of Data

■ Digitization

Enhancement of communication with customers
Efficiency and manpower savings of operations
Complement of functions by digital technology■ Utilization of Data ・Analysis of collected data・Data cooperation with external organizations

3

Establishing a Work Environment Where Employees Playan Active Role

■ Diversifying Human Resources and Enhancing Capability Development

・Recruitment of diverse human resources ・Provision of diverse work styles ・Capability development

4

Strengthen the Efforts of Sustainability■ Enhancement of Governance ■ Approach to the SDGs ■ Approach to Environmental Issues

Financial Goals
Results (FY2021)

Targets (FY2026)

Net sales¥469.9 billion

Approx. ¥650 billion

Ordinary income¥39.2 billion

Approx. ¥65 billion

Ordinary income
ratio

8.3%

More than 10%

Sales: Approx.

ROE

9.6%

More than 10%

Income: Approx.

Investment Plan
(Based on Cash Flow)

Keeping a stable dividend:
Payout ratio 30%
Future Targets

Items
Research and development, digital-related investments, etc.
M&A, etc.
Reference (Forecast of increase in cash)

19

FY2022–FY2026 increase in cash

¥1 trillion¥100 billion

FY2022–FY2026¥70.0 billion¥50.0 billion¥110.0 billion

1Enhancement of Response Capacity for Diverse Safety
and Security Needs of Society

Further Enhancement

Enhancement of Inside and Outside Infrastructure Cultivated by
the Security Business and Facility Management Business, andConstruction of Solutions through a Combination of Various Services
Internal Infrastructure of ALSOK

Responds 24 hours aday, 7 days a week

Available Nationwide/
Overseas in Six Countries

Monitoring Center
Call Center

Qualified Personnel(Security, Technology, Facility
Management, Long-Term Care)

Combination of Service Functions
Remote Monitoring

On-Site Response

MaintenanceLong-Term Care, Nursing Care

Overseas+

Enhancement of response capabilities through alliances with external organizations

Construction of solutions responding to the expanding safety and security
needs of society with diversifying risks through a market-oriented perspective

Prompt Development of Products and Services Assimilating New Technology
Development Structure
Enhancement of Researchand Development

Flexible andPrompt Development

Open Innovation
Note: Academia–industry alliance, alliance with other companies, etc.

Sophisticated andMultifunctional Equipment

Predictive Detection,
Identification Function

Remote Operation

Utilization of various technologies
such as image recognition andsound recognition technology

Utilization of 5G, big data, AI, etc.

Surveillance Camera, etc.

Preventive Measures

Automation, Manpower Savings

Prompt Initial Response

Optimization in Long-TermCare and Nursing Care Sector

GS

HS
Etc.

Utilization of 5G, drones, robots, etc.

Remote Control, Maintenance

Etc.

Etc.

Differentiation and high added value through thedevelopment of products and services incorporating new technologies
ALSOK REPORT 2021

20

Overview and Vision

Grand Design 2025

Medium-Term Management Plan (FY2022-FY2026)

2

Medium-Term Management Plan (FY2022–FY2026)

Digitization and Utilization of Data

Digitization and Utilization of Data (Data Driven)
Enhancement of Communication with Customers

Efficiency and Manpower Savings of Operations

Two-way communication(Frontline department)

Information transmission
prompt correspondence

ALSOK

Smartphones, Web, App, etc.
Note: App with system extensibility

Remote image monitoring
Promotion of remote operation
Utilization of drones and robots
Automation of equipment, etc.

Customer/
Consumermonitoring(Back office)Understanding requests and needs

Data coordination Automation
Computerized documents, etc.
After

Present

Utilization of Data
Customer value creation
Improvement of service quality

Note: Control the increase in personnel due to the increasing security
and facility management operation

Value co-creation

Open data+

Complement of Functions by Digital Technology

ALSOK

Remote sales support
Remote support for highly technical work
Coordination with customer information etc.

Customers

Note: Data analysis

Internal data
(ALSOK)

Quality improvement

3

Establishing a Work Environment Where Employees Play an Active RoleDiversifying Human Resources and Enhancing Capability Development—
Enhancement of Human Resources That Lead the Security,
Facility Management, and Long-Term Care Business
Diversifying Human Resources

Capability Development
Consolidate training structure(Including interacting with people through training in Japan and overseas)

Obtain qualifications

Diverse work styles(Fire prevention, telecommunications, construction, fire protection manager, long-term care, etc.)

Planned OJT, Off-JT
Support for self-development
Career development applying autonomy of the employee
Promote mobility of human resources in the ALSOK Group
Dispatch to diplomatic establishments abroad and overseas subsidiaries

Security
Facility
management

Long-term
care

Note: More than 850 people
in total since 1980

Securitystaff

In response tocrime prevention

Technical
staff

Maintenanceof equipment

Sales
staff

Mid-career recruitment, elderly, women,
foreigners, differently disabled, etc.
Fulfillment of human resources

Sales for electronic
security

Long-term/
nursing care staff

MaintenanceInspection of equipment
Assistance, etc.
Maintenance of facilities
Maintenance of IT equipment, etc.
Sales for transportation security
Sales for general property management
and fire protection

Long-term careand nursing careAcquisition of qualification

Diversification of response capability

Deepening the work-style reform of ALSOK by increasing engagement and improving
the system and environment where employees can perform at their full potential
21

4Strengthen the Efforts of Sustainability

Enhancement of GovernanceRealization of asustainable growth

Revision of
corporate structure

Improvement of
medium- to long-term
corporate value

Securing the rights
and equal treatmentof shareholders
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 our customers and ofsociety as a whole.

Dialogue withshareholders

Enhancement ofGovernance

Execution of
responsibilities by the
Board of Directors,
etc.

Management
efficiency

Appropriate
cooperation withstakeholders otherthan shareholders

Ensuring appropriate
information disclosureand transparency

Approach to the SDGs
ALSOK will contribute to the realization of a sustainable society and achievement of the SDGs through its
CSR initiatives and its strengths, such as excellent human resources, organizational capabilities andtrust based on its corporate philosophy when the Company was first established.

Four Material
CSR Themes

Providing Trustworthy
Security Services

Providing Products and Services
That Help Resolve Social Issues

Cultivating Human Resources
and Building a Comfortable
Workplace Environment

Contributing to Local
Communities throughActive Communication

Contribution
to the SDGs

Approach to Environmental Issues
ALSOK will promote environmentally enhancing activities so as to contribute to the realization of a sustainable
society based on the idea that global environmental issues are the common issue for all humanity.
Specific Eefforts
Initiatives toward Carbon Neutrality

Initiatives toward Circular Economy

Enhancement of initiatives toward reduction of
CO2 emissions

Converting to a business model with high cyclicity

Environmental Management

Contribution to the Resolution of Social Issues

Gaining trust from stakeholders in environmental
response

Provision of new products and services
ALSOK REPORT 2021

22

Overview and Vision

ALSOK’s Strengths
With its strengths that contribute to the safety andsecurity of customers and society, ALSOK will work
to create new values.

Organizational
Capabilities
to Ensure Safety and Security

With the industry’s leading service network, ALSOK provides a sense of
security to society and customers and demonstrates the mobility to arriveon the scene of any emergency quickly.
We have also realized solutions that capitalize on group synergy. For
example, we provide watching over services to the ALSOK Group’s long-termcare facilities, drawing on our know-how of security services.

Depots Located Nationwide

3,000

Approx.

Number of Employees

38,444

10,263Time to Arrive on the Scene

Number of Social Welfare Vehicles
Donated through the
ALSOK ARIGATO UNDO Foundation

16

minutes on average

126

Seoul
Shanghai
Hanoi
TaiwanYangonHai Phong
ChennaiBangkok Ho Chi Minh City
Gurugram

Number of Company Vehicles

vehicles on a
cumulative basis

Jakarta

Overseas
Operations

6

countries

TOPICS
Contributing to the Olympic and Paralympic Games Tokyo 2020
Feeling a sense of gratitude for the 1964 Tokyo Olympic Games having been a key factor in the founding of our company, ALSOK served as asponsor for the Olympic and Paralympic Games Tokyo 2020 right from the early stages when Tokyo was seeking to secure the right to hostthe games. In September 2013, when it was confirmed that the 2020 games would be held in Tokyo, ALSOK became an official partner.
Recognizing that large numbers of security guards would be needed for hosting the games, in April 2018 ALSOK helped to organize theOlympic and Paralympic Games Tokyo 2020 Security Consortium, and was appointed as a co-representative of the consortium. Eventually,a total of 553 security firms from all 47 prefectures in Japan joined the consortium, making this a truly “all-Japan” organization.
Besides arranging security for the Olympic Stadium and the Olympic Village, ALSOK also contributed toward the holding of the Olympic
and Paralympic Games Tokyo
2020 in a variety of different
areas, for example throughthe adoption of the ALSOK
Staff Cooperation System,
which was developed to help
make stationed security
operation more efficient,with the Olympics andIn-house team dispatch ceremony
Paralympics in mind.

Note: ALSOK was a Tokyo 2020 Official Partner (Security Services and Planning).

23

Excellent Human Resources
That Embody ALSOK’s 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 no seishin” into their actual actions. As professionals in the areas of security, facility
management (FM), and long-term care provision, we focus heavily on the cultivation of expert talent. Recognizing
the need to provide services that can be used with maximum peace of mind, we have established an internal
first-aid certification system—ALSOK Assistance—to enhance the assistance capabilities of ALSOK security staff
members who need to rush to the scene quickly in emergencies.

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

Over

850

on a cumulative basis

Number of Security Planners739

on a cumulative basis

Number of Construction Managing
Engineers, Electricians

Approx.

1,900

Number of Care Workers

Approx.

in total

2,000

Number of Employees
Who Have Attained
the Rank of Expert
in Martial Arts

Number of Security Consultants

37

on a cumulative basis

Number of Fire Protection Engineers

Approx.

3,700

in total

Number of Employees Who Have
Completed First-Aid Training

20,434in total

Number of Female Employees

3,551 5,465(14.2% of all employees)

Trust

Built upon Performance and Results
Based on the high reputation of our performance record and skills as a leading security service company in Japan,
ALSOK has won a large number of security services contracts both in Japan and overseas. ALSOK has also beenin 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.

Electronic Security Services Contracts

Approx.

990,000(Approx. 540,000 for corporate clients and
450,000 for individual users*)* Approx. 1,240,000 housing units covered when including contracts with housing complexes

Annual Amount of
Cash Handled

Approx.

¥469

Cumulative total of
AED devices soldApprox.

Number of ALSOK ANSHINKYOSHITSU Classes Held

trillion

52,161on acumulative
basis

Cash Deposit and Dispenser
Machine On-Line System

210,200 units Approx. 26,500 units

External Evaluations
Next-generation certification mark (Kurumin)
Eruboshi
FTSE Blossom JapanFTSE4GoodMSCI Japan ESG Select Leaders Index
ALSOK REPORT 2021

24

Overview and Vision

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
06

07

04
03

08

01

02

01

AI/IoT-Powered Security Services

02

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.

IoT×

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

07

25

Long-Term Care/
Community- Based Watching Over

05

Infrastructure Support and BCP Measures
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.

Cash Management Service, ATM Management Service

03 Security Robots and Drones
We have developed
security robots,
AI-powered fully
self-driving drones,
etc., and use themin coordination withsecurity guards
aiming to provide
more advanced andefficient security
services.

The ALSOK Groupleverages its uniqueknow-how of “protecting” insuch services as watchingover those family members
who live away, fee-based
long-term care facilities,
day care and home-visit
nursing care, anddispatching medicalmassage.

A security guard being
dispatched to the scene

04 Facility Management

05

08

06 Energy Conservation Services
We undertake air conditioning, water supply anddrainage upgrading work, as well as interior
environment testing and other inspection andtesting work.

Virus/Infectious Disease Control Measures

Case Examples of the Development of Safe and Secure Communities (1)Contributing toward Crime Prevention and Disaster Preparedness by Entering
into Agreements with Local Government Authorities, Etc., throughout JapanALSOK undertakes activities that contributetoward community safety, crime prevention, anddisaster preparedness in communities throughout
Japan. Making eﬀective use of our nationwide
network of approximately 3,000 depots andour ability to respond rapidly and ﬂexibly toemergencies, we have signed agreements withlocal government authorities, police departments,
etc., in relation to areas such as watching overservices and disaster preparedness support.
The content of these agreements is very
wide-ranging, covering items such as making ALSOK
depots available for use as evacuation locations in
the event of a natural disaster, using drones fordata collection, conducting crime prevention
patrols to ensure the safety of senior citizens andchildren, and checking up on people to see if they
are OK.
By making eﬀective use of the special
characteristics of our business activities to address
the problems aﬀecting local communities, we arefurther enhancing the contribution that we make tothese communities.

Hokkaido: Watching over service provision agreementswith local government authorities and local communities

Yahaba-cho: Comprehensive local watchingover service provision agreement

Aomori Prefectural Police: Collaboration on
activities aimed at preventing special-case scams
Kawachinagano City:
Provision of support in the eventof a natural disaster

Fukushima Prefecture:
Agreement regarding operation ofevacuation shelters in the event ofa natural disaster

Shiga Prefecture:
Comprehensive
collaborationagreement

Okayama Chuo Police Station:
Development of safe and securecommunities, and Blue Crime
Prevention Patrols(not conducted by police)

Koriyama City:
Agreement regarding collaboration
on disaster response activities in theevent of a natural disaster
Yahiko Village: Agreement regarding provisionof support in the event of a natural disasterYamaguchi Prefectural Police:
Community safety measures
Munakata City:
Provision of support in theevent of a natural disaster
Kitakyushu City:
Provision of watching overservice at the local level

Utsunomiya City and Oyama City, Tochigi Prefecture:
Agreement regarding provision of support in
the event of a natural disaster
Maebashi City: Agreement regarding facility
use in the event of a natural disaster

Kohoku-machi,
Kishima-gun:
Agreement regarding
provision of support in theevent of a natural disaster
Kumamoto:
Agreement regarding
measures directedagainst avian influenza
Kochi Prefecture:
Agreement regarding
provision of community-based
watching over service

Futtsu City: Agreement regarding provision ofwatching over service for senior citizens

Nishinomiya City:
Provision of
support in theevent of a natural
disaster
Kagawa Prefectural
Police:Provision ofcommunity-based
watching over service

Sagamihara City:
Data collection
using unmanned
aerial vehicles, etc.

Edogawa-ku: Provision of support in
the event of a natural disasterTokyo Security Service Association:
Agreement regarding provision of support
in the event of a natural disaster

Kofu City: Provision of watching over service for senior citizens

Toyohashi City, Handa City, Obu City, Taketoyo-cho, Owariasahi City,
Nagakute City, and Nisshin City: Provision of community-based watching over service
Okazaki City: Provision of watching over service for senior citizens

Case Examples of the Development of Safe and Secure Communities (2)Contribution Made as a Certified Wildlife
Capture Operator
ALSOK CHIBA’s Initiatives
Within Chiba Prefecture, damage to agricultural crops caused by animal and bird
pests amounts to approximately ¥400 million per year. Responding to thissituation, in July 2020 ALSOK CHIBA established the Mobara Game Meat
Processing Facility, after putting in place a framework for coordination with local
government authorities in Chiba Prefecture.
The Mobara Game Meat Processing Facility receives animals (including wildboars, etc.) caught by trappers, and processes them into meat products. Thisultra-modern facility implements thorough quality management̶including
sanitation management based on the hazard analysis and critical control points(HACCP) system, an approach to hygiene management that has won widespreadinternational approval, and testing to protect against the risk of hepatitis E
infection̶and provides game meat of the highest possible quality using an
integrated production system that covers every stage from skinning andbutchering through to meat processing, inspection, vacuum packing, cold storage,
and product delivery.

Meat processing facility
Mobara Game Meat Processing Facility

Case Examples of the Development of Safe and Secure Communities (3)Establishment of Tomisato Energy G.K.,
The First Public–Private Partnership (PPP)
Involving the Security Sector
On February 19, 2021, ALSOK established Tomisato Energy G.K., a Speciﬁed

Framework for Reducing the Electric Power Expenses of Public Facilities
in Tomisato City and Using the Savings to Fund Urban Development Projects

Tomisato
City

Electricity supply

Electric power
providerPurpose Company (SPC), in collaboration with Tomisato City and Asia Air
Survey Co., Ltd.

Through this new company, a framework has been put in place whereby,

by making electric power procurement more eﬃcient, the electricity bills

paid by public facilities within Tomisato City can be reduced, and the savings
used to fund urban development projects.

Going forward, ALSOK will continue contributing toward the realization ofa sustainable society by collaborating on similar urban development projects

Electricity
chargepayment

Consolidated payment
request for electric power
usage

Payment request forelectric power usage(Specified Purpose Company)

Electricity
chargepayment

Tomisato Energy G.K.

Tomisato City
Asia Air Survey Co., Ltd.
SOHGO SECURITY SERVICES CO., LTD.

that help solve local problems.

Using the savings for urban development projects(Utilizing the savings made by reducing expenditure on electric power)

ALSOK REPORT 2021

26

Overview and Vision

ALSOK’s R&D

ALSOK’s R&D Activity Involves Not Just High-Level Manufacturing
But Also the Creation of New Safety and Security Systems
To enable our customers to live in safety with real peace of mind on a daily basis, and recognizing theneed to create new kinds of safety by integrating the latest technologies with the expert know-how that
we have accumulated as a specialist security company, ALSOK continues to undertake R&D work on
the most advanced technologies every day.

Responding to the COVID-19 Pandemic■ Launching the ALSOK Fingerprint■ Launching the ALSOK Congestion Status

The COVID-19 pandemic led to strong demand for non-contact ID
verification systems. ALSOK has responded by developing andlaunching the ALSOK Fingerprint Authentication Card, which
incorporates a fingerprint authentication function into a contactless
IC card, thereby contributing toward infection prevention and also
preventing unauthorized use in the event that the card is lost or stolen.

Responding to the growing demand from people wanting to beable to avoid crowded places during the COVID-19 pandemic, inJune 2021 we launched the ALSOK Congestion Status Distribution
Service, with which, using images analyzed by security system
artificial intelligence (AI), updates on crowding status (i.e., whether
an area is becoming overcrowded) can be easily sent to a facility’s
official website or to digital signage. Enabling facility users to check
crowding status in advance helps facility operators to implement
crowding mitigation measures, and also makes it possible toachieve the right balance between infection prevention andattracting customers.

Authentication Card

■ Provision of Office Security That

Utilizes the My Number Card

ALSOK has responded to the trend toward My Number Cards
being used as ID verification cards in central government agencies,
local government authorities, and national universities. Besides theexisting ALSOK security cards and customers’ own employee ID
cards, on August 20, 2021 we began provision of a new service
whereby My Number Cards can be used for office security,
including access control ID verification, and activation anddeactivation of security settings.

When the My Number Card is in close proximity, the informationon the card can be read; it can also be used for controllingelectronic locking devices and as a remote operating device forElectronic Security Services.
Entering or leaving rooms
within a building

Activation and deactivation ofElectronic Security Services

Distribution Service

Manager

Customers

Setting the number of people
that is defined as crowded

Facility’s website

CrowdedNot
crowded“It’s not crowded”“It’s crowded”
Image analysis and message
transmission

Product Features● No need to purchase a dedicated device

As this system uses the image sensors and security camera
images from the existing security system, and as the image
analysis is performed in the cloud, there is no need to purchase aseparate image analysis device. Also, the service only needs to be
used when it is actually required.

Product Features● Users do not need to carry a separate IC card forentry management and security purposes● The administrative burden of issuing, lending, andreturning IC cards for access control and security
purposes is reduced● IC card issuing expenses are reduced

Note: ID verification is performed utilizing a user number that is written onto a card
application in an unused segment of the IC, separate from the My Number(personal number), so the My Number itself is not used.

27● Flexible detection settings

For each camera, analysis can be performed for up to fourareas. As the organization sending messages to its website canimplement crowding mitigation based on data for the total numberof people as determined from multiple different cameras, detailed
settings can be made for individual areas within the facility, or for
the facility as a whole.

● The URL for the website page to which messages

are sent can be generated easily using the systemmanagement screen

By setting a link to the customer’s website, messages containing
information for facility users can be sent easily.

New Initiatives—ALSOK’s Flood Preparedness-Related Service
Wide-area monitoring service utilizing drones

Disaster-prevention solutions forrivers and reservoirs

Drone

Safety confirmation service

Underpass monitoring
Underpass

Small and medium-sized rivers
City hall

Wireless system for disaster prevention

Flood barriers

Important locations

Store
Highway

Solutions for measures required by
the Flood Control Act

Solutions forevacuation shelters

LINE-capable flooding sensors

TOPICSA River Management Solution Using
ALSOK’s Uunmanned Aerial Vehicles (Drones)
Is Selected as a Kanagawa Prefecture
Cutting-Edge Robotics ProjectOnce again this year, as in 2020, the River Management
Solution Using Unmanned Aerial Vehicles (Project for Detecting
Persons Lingering in or Near Rivers and Warning Them to
Evacuate, and for Implementing Riverbed Measurement), which
ALSOK proposed, was selected as a Cutting-Edge Robotics
Project by the Kanagawa Prefectural Government.
By making effective use of unmanned aerial vehicles(drones), which have good resistance to wind and rain, and of
aerial photography image analysis technology, we are working
to commercialize systems thatwill make it possible to detect
and warn people who linger inor near rivers to seek safety,
and also enable measurementof riverbed deformation
resulting from natural
disasters.

Making Effective Use of Drones in
Bridge Inspection Operations
In September 2021, ALSOK implemented bridge inspection
operations using drones in Hamamatsu City, Shizuoka
Prefecture. By using drones in the bridge inspection business—
demand for which is expected to rise due to the increase in
the number of aging bridges, and the shortage of skilled
technicians—it is possible to reduce the amount of ancillary
work needed (such as erecting scaffolding and performing traffic
control, etc.), reduce the amount of labor needed, and shorten
the time needed to complete the work.
Besides aiming to achieve widespread adoption of the use ofdrones for inspection work,
ALSOK is also seeking tocontribute to the buildingof high-quality social
infrastructure through “safe,
secure, sustainable urban
development.”

Bridge inspection usinga drone in progress
Note: For more information, please visit our website.
https://www.alsok.co.jp/company/news/

ALSOK REPORT 2021

28

Overview and Vision

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, and Long-TermCare Services, which are intended to protect the lives and properties of our customers, we regard the provision of quality services that
support the intention of customers based on the relationship of trust as an important management issue.
ALSOK is promoting various quality improvement initiatives on an ongoing basis, including reflecting customer feedback in business
improvement efforts, developing a corporate culture that encourages employees to encourage and learn from one another, working to secure
various types of management certification, and preparing for anticipated risks.

Improvement of Customer and Employee Satisfaction
Customer feedback, including opinions, requests, complaints, and praise, is shared with all employees, and is used to improve our services
on a daily basis. We are also working to develop a corporate culture to seek both customer and employee satisfaction at the same time bysuch 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.

Number of Customer Feedback

1,940● Adoption of a system for assessing
complaints in a constructive way

By instilling awareness of the need to prevent
reoccurrence, we have reduced the number of complaints.

67(including 813 complaints and
1,127 messages of appreciation)

Number of GST Cards Distributed

GST Cards

82,148fewer complaints than in
the previous year (down 7.6% YoY)

● Honoring of the GST Card Monthly“Most Valuable Player” (MVP)

Increasing opportunities for employees to receive
commendation, by fostering the development of a corporate
culture that values praise, and by raising motivation

on a cumulative basis

Excellent offices areawarded every month.

Securing Various Types of Management Certification
In 2002, ALSOK acquired ISO 9001 certification,
the international standard for quality management
systems (QMS). ALSOK’s efforts on continuous
improvement through the PDCA cycle also
include the acquisition of information security
management system (ISMS) certification to protect
information assets.

29

ALSOK Group Certification Status (As of March 31, 2021)

● QMS

56

● ISMS

19

certification: companies

● EMS

38

certification: companies

certification: companies

Note: Number of companies participating in joint certification with multiple companies including SOHGO SECURITY SERVICES CO., LTD.
SOHGO SECURITY SERVICES CO., LTD. has also been awarded Business Continuity Management System (BCMS) certification.

Risk Preparedness
ALSOK secured Business Continuity Management System (BCMS)
certification in March 2014, and we are prepared for a wide range ofrisks, for example through the formulation of our business continuity
plan (BCP). ALSOK promptly establishes a Disaster Response
Correspondence Office to collect information and secure necessary
human and other resources.
We also make effective use of our safety and security know-how,for example by having the ALSOK Group’s long-term care facilities
hold disaster preparedness training in collaboration with ALSOK itself.

Comprehensive disaster response drill

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 thenumber of skill certifications and public certifications secured necessary for work.
We aim to enhance service quality company-wide by holding the ALSOK Group Corporate Quality Improvement Tournament, which
involves competing in events that relate directly to actual services, and the Long-Term Care Quality Improvement Presentation, implemented
by our long-term care provision companies, on an annual basis.
Luggage inspection event

Sales presentation competition

Long-Term Care Quality
Improvement Presentation

Initiatives for Safe Driving
ALSOK is promoting measures to ensure
safety, including the establishment of annual
targets for the prevention of occupational
accidents and the provision of education on
work safety.
In our security-related divisions, where
personnel need to drive frequently, besides
adopting a safe driver certification system
and accident-free vehicle badge system,
we have made it compulsory for newly
purchased vehicles to be fitted with safety
features such as driving recorder devices,automatic braking systems, and lane
departure prevention (LDP) systems.

Implementation of road accident prevention educationand practical skills training

An in-vehicle camera● Strengthening driving recorder device incident management,

rectifying bad habit, and improving driving skills
Complaints about driving etiquette (Electronic Security Services)

Down 25% YoY

ALSOK REPORT 2021

30

Overview and Vision

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 throughthe enhancement of training systems, active support for career development, and the promotionof diversity.

Policy Regarding Development of Human Resources
To invigorate the ALSOK Group as an organization and to promote the enhancement of employees’ capabilities, we encourage employees toobtain various types of official certification, and we also make an effort to foster personnel exchanges with central government agencies andother business enterprises, and between companies within the Group. These initiatives are based on a fundamental approach which recognizes
that human talent is the most important foundation for all corporate activities. We aim to cultivate human talent that embodies our management
philosophy, and we are working to expand our education and training systems.
By supporting diverse work styles for diverse human talent, we are aiming to cultivate talent that can play a leading role not only in the security
business but also in the facility management and long-term care sectors. To this end, we put in place the systems and environments needed forindividual operatives to maximize their capabilities, and we are intensifying the process of work-style reform at ALSOK while strengthening
employee engagement.

Initiatives● Introduction of a “job matching system” through which employees
can apply for a desired position● Cultivating managerial talent by assigning employees to undertake
MBA programs
Holding
one-on-one interviews with new employees who are recent●
graduates● Adoption of role-specific on-the-job training (OJT) sheets, so thatevery aspect of the work, and the levels that need to be achieved,
can be visualized
Dispatchinglarge numbers of employees to provide security●
services at Japanese embassies and consulates overseas
Initial training

Achievements of Our Human Resource Development Initiatives
By making effective use of e-learning to expand our education and training environment, we have been able to provide even more employees withthe education they need to enhance their capabilities, at any time and regardless of where they are located, despite the impact of the COVID-19
pandemic. In addition, by introducing an internal job-posting system, not only for security roles but also for other businesses such as long-termcare provision and facility management, we have been striving to identify and cultivate human talent that can play key roles in our businesses.
Furthermore, continuing on from our efforts in the fiscal year ended March 31, 2020, we have been aiming to expand the range ofcorrespondence education courses available for employees to take, and we have provided employees with details of 80 such courses for which
Education and Training Subsidies are available under the Ministry of Health, Labour and Welfare’s Education and Training Subsidy System.

Training and
Education Hours per Employee

15.9

hours onaverage

Number of Training Classes Planned andOffered by the Head Office
111 per year
Correspondence Education

323

coursesavailable(Up 33 courses YOY)

4,172

Number of Employees Taking
e-learning Courses

Up

1,711

YOY

Additionally, with the aim of getting more employees into the habit of reading, we have
implemented a program whereby Company officers recommend books which they
believe it would be beneficial for employees to read, with an annual total of 585 books
being recommended. The ALSOK LIBRARY, our in-house library, has a collection of
3,394 books, which employees are free to borrow.

31

Change in the Number of
Employees Taking e-learning
Courses
4,000

3,000

2,000

2,461
1,962

1,000

0

2018

2019

2020

Diversity● At our overseas business locations, we respect local employees’

religious beliefs and practices, and provide them with the timeand facilities they need to pray. We also work to deepen mutual
understanding by having Japanese employees on assignment tooverseas locations participate actively in local religious ceremonies, etc.

● Some ALSOK Group companies already have transgender people

working there as regular employees. We respect individuals’ genderself-identification, promote awareness among our employees to createa transgender-friendly working environment, and are putting in placesystems to support transgender employees in the workplace.

● Besides making “ALSOK Assistance” first aid skills training compulsory
for employees performing Electronic Security Services or Stationed
Security Services roles, we are also striving to enhance employees’
understanding of diversity by providing training to help employees
become more accepting of difference (barrier-free mindset).

Work-Style Reform and Work–Life Balance
In order to create a working environment that enables employees tocontinue working while undertaking childcare responsibilities, ALSOK
has put in place various systems for employees with childcare
responsibilities that go beyond the mandatory requirements stipulated
by law.
With the number of female employees having increased in the past
few years, and with male employees tending to participate more
actively in childcare, we are adjusting and expanding the relevant
work-related systems.

Ratio of Employees Returning to Work after Taking Childcare Leave(Non-consolidated)

Male

100%

Female“Eruboshi” certification mark(awarded to companies that actively
promote the advancement of womenin the workplace)

97.6%"Kurumin Mark"(awarded to firms thatare judged to be taking
proactive measures topromote family-friendly
workplaces)

We have adopted text-to-speech software to
make it easier for senior citizens, people withdisabilities, etc., to access content on the
ALSOK website.

Comments from Employees Who Have
Made Use of These Systems● After our child was born, it seemed as though there

were problems that had to be overcome almost everyday. I was glad to be able to do the housework for mywife, because she experienced some health problems
after giving birth.
● When our second child was born, I took childcare leave
to look after the older child. It has been great being
able to spend so much time together with our older
child.
● I feel very grateful for the fact that, although we don’t
have many people in our team, when I said that I
wanted to take childcare leave, my supervisor and mycolleagues didn’t get annoyed about it, and were willingto adjust their work responsibilities to cover for me.
I● was feeling quite embarrassed, but when I started
back at work I was welcomed back in a very friendly
way, and I have been able to get back to work
cheerfully and with peace of mind.

Average Overtime Hours Worked(Non-consolidated)

Down

1.2 hours YOY

Health Management Promotion Activities
In 2018, we established a Platinum Holiday System that enables all employees to take long vacations of nine consecutive days or more, andin the fiscal year ended March 31, 2021 we introduced a new Pearl Holiday System whereby employees can book vacation time in advanceon a quarterly basis, thereby helping to create an environment in which it is easier to take one’s holiday entitlement.
We provide an employee welfare program through which employees can enjoy discounts on the use of sports facilities, hotels, etc., andhave put in place an insurance system to support employees in the event that they are forced to take a long period off work. We haveestablished the ALSOK Support Line as a contact window for mental health consultations, and collaborate with the Health Insurance Union
on the holding of health-related events. Through measures such as these, we provide support to help employees and their family members
enjoy healthy, fulfilling lives.

ALSOK has been selected as a
Certified Health & Productivity
Management Outstanding
Organization for fiveconsecutive years since 2017.

Percentage of Employees Indicated as Having
High Stress Levels in Stress Checks(Non-consolidated)

Down

1.9 % YOYALSOK REPORT 2021

32

Sustainability and ESG

To Realize a Sustainable Society

SDGs-related initiatives
Addressing society’s problems
through all of ALSOK’s businesses
Contributing to society’s safety
and security

The spirit that underpinned ALSOK’s founding:“arigato no kokoro” and “bushi no seishin”

33

ALSOK’ssustainablegrowthContributing
toward therealizationof the SDGs

Realizing a sustainable society

The United Nations’ Sustainable Development Goals (SDGs) vision of a sustainable global society
in which we “Leave No One Behind” perfectly matches the ALSOK Group’s management
philosophy of doing our utmost to ensure the safety and security of our customers and ofsociety as a whole, in line with ALSOK’s fundamental ethos of “arigato no kokoro” (a feeling ofgratefulness and gratitude) and “bushi no seishin” (a samurai spirit), which we have held to eversince ALSOK was first founded.
As a company responsible for a critical component of social infrastructure, the ALSOK Grouphelps to ensure the safety and security of everyone living in society through a network that is thelargest of its kind in Japan. By further expanding the strengths that the ALSOK Group has built up
over the years and its sustainability initiatives, and by providing various safety- andsecurity-related services based on its founding spirit, we aim to contribute toward the realizationof the SDGs and the achievement of a sustainable society.

The SDGs That ALSOK Is Contributing Toward
SectorConsideration for
the global
environmentE

P.37–38

Environmental

Providing products
and services that
help resolve social
issues
P.25–26

S

SocialHuman resources
development andempowerment
initiatives
P.31–32

Community
contribution
activities
P.39 –40

Quality
improvement
initiatives
P.29 –30

G

GovernanceCorporate
governance
P.41–44

Social Issues

Main Initiatives

Vision● Intensification of climatechange● Safeguarding
biodiversity● Effective utilization of
resources● Reducing energy usage
and CO2 emissions● Responding to bird andanimal pests● Promoting the “3Rs”(Reduce, Reuse, Recycle)

Helping to resolve
climatechange-related
problems, andcontributing towardsafeguarding the
global environment● Crime, terrorism, etc.
● Aging social infrastructure● Shrinking labor force,and shortage of medical
professionals and care
workers● Integrating AI and the IoTwith security● Monitoring services● Watching over and
ALSOK long-term care

● Cultivating diverse talent● Respect for diversity andhuman rights● Work–life balance● Improving theenvironment for employee
education/training● Diversity promotion● Strengthening healthmanagement initiatives● The need to control crime● Loss of educational
opportunities● The need to provide
support for recovery● Holding of various types ofcrime prevention seminars● Sports promotion andactivities to support thenext generation● Disaster relief andvolunteering activities● Enhancing service quality● Risk preparedness● Worsening labor
environment andoccupational accidents● Enhancing customer
satisfaction andemployee satisfaction● Improving the BCP
framework● Occupational safetymeasures● Corruption prevention● Compliance● Strengthening
transparency● Improving the corporate
governance framework● Complying with Japan’s
Corporate GovernanceCode● Implementing
effectiveness assessment

Addressing
society’s problems
through therealization of safety
and security bymaking effective
use of theknow-howcultivated in the
security sector

Becoming abusiness group thatis trusted by its
stakeholders

ColumnInitiatives Directed at Students
ALSOK provides internships for students on an annual basis, and for the
fiscal year ended March 31, 2021 the theme was “Learning About theSDGs, Which Have Become a Focus of Global Attention.” We presented
concrete examples of the SDGs that ALSOK is seeking to address, andheld workshops to discuss what ALSOK can do to address SDG goals that

Internship activity

are of particular concern to students. Around 95% of the participating students expressed satisfaction with this initiative.
Rather than just introducing the measures being implemented by ALSOK, the initiative also provided the participating
ALSOK personnel with CSR-related responsibilities with exposure to the students’ flexible thinking and new ideas, andthey too found it quite interesting.

ALSOK REPORT 2021

34

Sustainability and ESG

Sustainability and CSR Management
For ALSOK, sustainability and corporate social responsibility (CSR) mean contributing toward the safety andsecurity of our customers and of society as a whole by addressing various problems that affect them through ourbusiness activities. Ever since ALSOK was founded in July 1965, we have undertaken our operations with a strong
sense of mission, and we have newly formulated the ALSOK Group Basic Sustainability Policy to outline what the
ALSOK Group as a whole will be aiming for in terms of sustainable growth.

ALSOK Group Basic Sustainability Policy
The ALSOK Group has been responding to the expanding need for safety and security in a society where risks are diversifying with a strong sense of
mission based on two core principles exemplified by “arigato no kokoro” (a feeling of gratefulness and gratitude) and “bushi no seishin” (a samurai
spirit). At the same time, the Group has been taking steps to address issues related to sustainability based on the recognition that it is a fundamental
management issue. We declare that we will fulfill our social responsibility as a resilient integrated safety and security solutions provider by promoting
the innovation of our security business model to meet the diverse safety and security needs of our customers and society going forward. We haveestablished this as the ALSOK Group Basic Sustainability Policy.

(1) Providing products and services that contribute to the solutions of social issues

By maintaining an understanding of trends in our constantly changing society and applying the expertise we have built up over our many years in the
security services industry, we at the ALSOK Group will offer multifaceted services that contribute to the solutions of the issues that society in generaland our customers in particular face. We are committed to doing our part to contribute to the sustainable development of society through responding
to the needs of increasingly diverse lifestyles and an aging society as well as giving our support to measures taken to deal with natural disasters andsupporting local communities in cooperation with local governments.

(2) Ethics and fair trade

In order to fulfill our social responsibility and continue to be a company that has society’s trust, we will maintain a high level of ethics. We will have absolutely
no relations or associations with antisocial forces (criminal organizations or forces). We also forbid the abuse of positions of privilege, and will not engage inany acts that impede fair, transparent, and free competition. Furthermore, we will proactively provide and disclose information to our shareholders.

(3) Corporate governanceSo that the ALSOK Group continues to exist as an entity open to the community and to society and continues to be trusted and respected as acompany, we promise to fulfill our duties of accountability, make our management more efficient, and increase transparency. We will facilitate dialogue
with and among our customers, employees, shareholders, investors, business clients, local communities, and other stakeholders. We will also
continue to enhance the transparency of our management, improve the effectiveness of auditing, and strengthen our systems of internal control.

(4) Human rights and labor

The ALSOK Group respects the human rights of all stakeholders and treats them in a respectful manner, in accordance with international rules relating
to human rights. We ensure that employees enjoy the working hours, weekends, holidays, and wages that they are entitled to by law, and we do not
engage in any form of discrimination or unethical treatment.

Framework for Sustainability and CSR Initiatives
Material Theme

Providing Trustworthy
Security Services

Material Theme

Providing Products and Services
That Help Resolve Social Issues

Material Theme

Material Theme

Cultivating Human Resources andBuilding a Comfortable Workplace
Environment
Contributing to Local Communities
through Active Communication
Consideration for the
Global Environment

35

ALSOK has established its management policies and code of
conduct as well as a framework of internal regulations and rules.
Furthermore, the Company 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 ALSOKGroup should engage with its stakeholders. The code of
conduct defines how all members of the Company, including
employees and executive officers, should act in carrying out
their daily business activities. The Company has also establishedvarious internal regulations and rules related to specific issues.
Based on these guidelines, we are incorporating sustainability
perspectives into all areas of our business operations.
In 2014, we defined four material CSR themes as specific pillarsof our CSR activity policy to pursue ongoing improvements incorporate value while developing our business. We also facilitate
CSR activities to help resolve social issues from a global
perspective through verification of compliance with the SDGs,
which were adopted by the United Nations with the aimof resolving some of the major problems affecting the world.

(5) Providing trustworthy, resilient integrated safety and security services

The ALSOK Group always demands a high level of ethics and discipline. We consider issues of compliance, the protection of information assets, andthe business continuity plan (BCP) to be of particular importance for management, and as such continually engage in various forms of seminars andtraining for the purpose of education. Going forward, we promise to continue our efforts to raise the quality of service that we provide and to enhancecustomer satisfaction.

(6) Human resource development and providing better workplaces

For a company to grow sustainably, we recognize that human resources are the indispensable driver of competitiveness. Based on thisunderstanding, the ALSOK Group is continually enhancing its seminar and training systems and actively providing career support so that its
employees can make the most of their abilities. We will continue to work to implement systems-designed work environments in which employees findit comfortable to work through steps such as promoting better work–life balance and meeting diversity needs, and continue to train and educate thehuman resources that form the foundations of our corporate activities.

(7) Conservation of the global environment

Continuing to implement measures to reduce CO2 emissions and foster the reuse and recycling of resources, as well as nature conservation activities,
etc., in order to help safeguard the global environment, the ALSOK Group also provides products and services that contribute toward helping resolve
environmental problems for our customers and for society as a whole.

(8) Contributing to local communities

The measures that we implement both within and outside Japan to address the various problems affecting local communities embody the ALSOKGroup’s fundamental philosophy of “arigato no kokoro” (a feeling of gratefulness and gratitude). Through initiatives such as the ALSOK ARIGATO
UNDO FOUNDATION, which organizes crime prevention patrols, provides coaching for children’s sports activities, and undertakes disaster relief bothin and outside Japan, we undertake activities that make a positive contribution to local communities.

(9) Thorough crisis management

Besides being prepared for threats such as natural disasters, terrorist attacks, and cyberattacks, we are also ready to implement countermeasures
immediately in the event of an emergency, and we strive to minimize the negative impact on our stakeholders.

(10) The role of our management team

ALSOK’s senior managers have a strong awareness of the fact that addressing issues relating to sustainability is an important aspect of management.
By putting in place an effective governance system, we strive to spread awareness throughout the Group. We are also promoting sustainability
initiatives in the supply chain.

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.
● Promotion and enhancement of customer

satisfaction● Quality and safety promotion initiatives● Holding of crime prevention classes

and courses● Art, culture, and sports promotion● Disaster recovery and volunteering
support● Environmental activities, protectionof biodiversity, etc.

● Provision of safety and security services

Customers● Dissemination of information throughwebsites, SNS, etc.

Local Communities
and theGlobal Society

Employees● Establishment of the internal reporting system● Enhancement of health and welfare benefit

ALSOK

plans

● Promotion of health management, etc.

● General Shareholders’ Meetings,

results briefings● Fair business practices● Issuance of integrated reports,

securities reports, etc.
● Disclosure of business and other risks● Investor meetings, etc.

● Enhancement of the education system

Shareholders/
Investors

Business
Partners● Green procurement● Supply chain management● Information security management system

operation, etc.

ALSOK REPORT 2021

36

Sustainability and ESG

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.

Realizing Carbon Neutrality● Green procurement
In 2006, we formulated our Green Procurement Guidelines, andwe ask new suppliers to commit to being environmentallyfriendly. When delivering security alarm devices, we strive
to reduce the number of individual shipments from the
manufacturer, and to consolidate deliveries from the warehouseto individual depots throughout Japan, thereby reducing theenvironmental footprint.

● Initiatives aimed at reducing energy use
By switching over to using LED lights in ALSOK-owned facilities
and adopting solar power systems for employee housing andGroup company facilities, we aim to reduce the CO2 emissions
associated with energy use. We are also promoting energy

ALSOK’s Tokyo Training Center, which has adopted LED lighting

saving by overhauling existing equipment.

● Switching over to environmentally friendly vehicles
As a company that uses large numbers of vehicles in its
operations, ALSOK is proactively promoting a shift over tothe use of electric vehicles and hybrid vehicles.
By adopting environmentally friendly vehicles appropriate todifferent operational requirements, we are contributing toward a
reduction in CO2 emissions.

Our Short-, Medium-, andLong-Term CO2 Emissions Targets
For the fiscal year ending March 31, 2022, our short-term goal isto reduce CO2 emissions to less than 82,394 t-CO2, in order toreduce CO2 emissions on a per unit of sales basis by 6.8%
year-on-year.
We are also reviewing the medium- and long-term reduction
targets that we have set so far in order to evaluate the setting of
ambitious targets, taking into account the current environment
while keeping an eye on the expansion of our business scale.

37

Adoption of a solar power system (conceptual image)Relationship with the SDGs

Safeguarding Biodiversity
In the fiscal year ended March 31, 2020, damage to agricultural crops in Japancaused by animal and bird pests totaled approximately ¥15.8 billion. Besides
causing damage to rural communities, these pests also pose a threat to biodiversity
in forest habitats.
ALSOK has been certified as Certified Wildlife Capture Operators. Not only does
ALSOK sell protective fencing and related ICT equipment to local government
authorities, ALSOK CHIBA has established a meat processing plant, andcollaborates with local Japanese restaurants on the sale of game meat.

Number of ALSOK Group companies that holdCertified Wildlife Capture Operators certification

8 ALSOK Group companies(ALSOK KANAGAWA, ALSOK CHIBA, ALSOK MIYAGI, ALSOK FUKUSHIMA,ALSOK AKITA, ALSOK GUNMA, ALSOK YAMAGATA, and ALSOK FUKUOKA)

Helping to Build a Resource-Circulating Society
In the past, individual ALSOK depots signed separate agreementswith mobile phone service providers. Now, by adopting a Bring YourOwn Device (BYOD) system, we have reduced the number of mobile
phones that have to be provided for employees by 1,035 units.
In addition, with the exception of some units that cannot be
repaired, we aim to reuse all security alarm devices, thereby helping
to reduce the quantity of resources used in relation to waste units
and the manufacturing of new units.
Furthermore, ALSOK depots throughout Japan undertake beachand street clean-up activities, helping to safeguard the environment

Beach clean-up activity undertaken by ALSOK Kanagawa

in their local community.

Average reuse rate forall depots nationwide

55%

Cost saving achieved
through reuse¥1,301million

Promoting Paperless Offices
By making adjustments to tasks that in the past required the use of
paper, and by making effective use of digital application systems andchat apps developed in-house, we have succeeded in reducing annual
paper consumption by approximately 3.24 million sheets.
There has also been growing demand for the service we provide for

Reduction performance¥1.88million

Cost reduction

collecting and recycling customers’ confidential documents, which hasbrought in roughly ¥37 million of additional sales revenue.

Equivalent to296t-CO2

Aiming to Have the Entire Company Secure ISO 14001 Certification
In 2016, ALSOK formulated an environmental policies and secured ISO 14001 certification, and in 2018 we began working
to obtain ISO 14001 certification for all branches. Since 2019, several ALSOK Group companies have shifted over to jointcertification, and currently a total of 38 Group companies have been certified. Going forward, besides working to obtain ISO
14001 certification for all Group companies as speedily as possible, we will also be striving to ensure that the ALSOK Group
as a whole conducts environmentally friendly business activities.
ALSOK REPORT 2021

38

Sustainability and ESG

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 involunteering and donation activities beyond regular business activities to contribute to the resolution of various social issues
and to promote regional development.

● ALSOK HOTTO LIFE KOZAALSOK employees volunteer to give visiting classprograms at which they outline current trends in crime
targeting senior citizens—such as bank transfer scams,
purse-snatching, and burglary—and discuss ways toprotect against these crimes.
The seminar content is prepared based onrecommendations received from the Community Safety
Bureau, Tokyo Metropolitan Police Department, and uses
quizzes, Karuta (traditional Japanese playing cards), etc.,
to make learning fun.

Number ofClasses Held337

Number of
Attendees

8,962● ALSOK ANSHIN KYOSHITSU classes

In addition to crimes committed while away from home andon the way to and from school, the number of cases wherechildren are involved in internet crimes is increasing every year.
ALSOK employees travel to elementary schools
throughout Japan to give visiting class programs, which
provide opportunities to learn about crime prevention in ways
suited to today’s changing times, with the aim of helping tosafeguard children from crime.

Number ofClasses Held

1,137

Number of
Attendees

34,313(As of March 31, 2021)

TOPICS
Expanding Disaster Preparedness Education Provision through the
ALSOK ANSHIN KYOSHITSU Curriculum
Hazard Assessment in the Event of a Major Earthquake

Using a bird’s-eye view of a child’s bedroom, the class gets children thinking about what kind of risks there would be in thehome if a major earthquake occurred, and teaches ways of tidying up the house to prevent household objects from falling
over, crashing down, or moving sideways in the event of an earthquake, and the importance of keeping things neatly arranged.

Explanation of How to Use the Disaster Emergency Message Dial Service, and Practice in Using It

The instructors explain to the children that, if they are alone at home when a major disaster such as an earthquake or flood
occurs, they may need to evacuate from their home, and the instructors stress the importance of having family members agree inadvance where they will evacuate to.
They also explain about the Disaster Emergency Message Dial (171) service, which is an effective way of getting in touch withfamily members who are unable to return home. As a practical exercise, the instructors ask the children to think about what kindof information they would want to transmit to their parents/guardians, and to practice saying aloud a 30-second message.

39

Relationship with the SDGs

Sports Promotion Activities

ALSOK Vietnam Security
Services
Participation in the
Pocari Sweat Run event● Support and sponsorship for sports teams that havestrong links with the local community● Organizing online events involving athletes associatedwith ALSOK, for students affected by the cancellation ofmajor sporting events due to the COVID-19 pandemic● Assignment of security guards and provision of AED for
sporting events held overseas● Support for athletes associated with ALSOK

Online sports class phototaken on the day of the event● A total of nine athletes associated with ALSOK took part in Olympic and Paralympic Games Tokyo 2020,of which three won medals during the games.
JudoWrestling

Goalball

Shoichiro Mukai

Shohei Yabiku

Haruka Wakasugi

Men’s 90kg competition
Silver medal,
Mixed Team

Paralympics
Bronze medal,
Women’s competition

Bronze medal,
Men’s Greco-Roman
Wrestling 77kg

Wrestling

Weightlifting

Weightlifting

Rifle shooting

HockeyHockeySosuke Takatani

Toshiki Yamamoto

Kanae Yagi

Naoya Okada

Masaki Ohashi

Hiromasa Ochiai

Men’s Freestyle
86kg competition

Men’s 96kg competition

Disaster Support andDonation Activities

Donation of a barrier-free vehicle forsocial welfare use

Women’s 55kg competition

Men’s 10m Air Rifle
Mixed Team 10m Air Rifle
Men’s 50m Rifle 3 Positions

DefenderMidfielder● A total of 35 ALSOK employees volunteered to assist with disaster
relief following the 2020 Kyushu Floods.
ALSOK
gave donations to Fukuoka Prefecture, Kumamoto●
Prefecture, and Oita Prefecture to support disaster relief efforts
following the 2020 Kyushu Floods.
The ALSOK ARIGATO UNDO FOUNDATION, whichbegan its activities in 1967, provides disaster relief
donations and donates barrier-free vehicles for social
welfare use, using funds donated by the ALSOKGroup’s corporate officers and employees, as wellas outside donations.

Number of Vehicles
for Welfare Services
Donated126

on a cumulative basis(As of March 31, 2021)

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 portionof home security revenue through NPOs. We also conduct other activities including
donation through the ALSOK ARIGATO UNDO FOUNDATION, volunteering atchildren’s cafeterias, and requesting assistance from our corporate customers.

● Mecenat Activities

We are working on the preservation of traditional events through participation in
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 byour employees is entertaining many customers.

Works by employees and their families weredisplayed at the ALSOK Cultural Art Exhibition

ALSOK REPORT 2021

40

Sustainability and ESG

G: Governance Corporate Governance
Basic Policies and Systems
Based on its management philosophy exemplified by the principles of “arigato no kokoro” (a feeling of gratefulness andgratitude) and “bushi no seishin” (a samurai spirit), ALSOK devotes itself to protecting the safety and security of its customers
and of society as a whole. The ALSOK Group also advocates “contributing to society” as one of its management policies.
Meanwhile, to continue to be a corporate group that is trusted by all stakeholders, we strive to reinforce Groupwide corporate
governance with measures 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

2003

Number ofmembers

2021
2007

2009

2013

2015

2016

2021

7

8

7

8

10

12

2009

2016

2017

2021

1

2

3

4

OutsideNumber ofmembers

Outside

June

2008

2009

2021

4

5

4

2003

2006

2021

3

2

3

2002

November 2002
December 2002
April

2004

August2004

September 2004
December 2004
May

2006

July

2009

April

2016

Introduction 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 Information AssetManagement Committee
Formulation of the Personal
Information Security Policy
Formulation of the Basic Policy
Related to the Internal Control System
Formulation of 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 the agenda 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, todiscuss and make decisions based on reports on important matters related to audits. One Audit & Supervisory Board
member attends meetings of the Management Committee to provide appropriate oversight for management.
General Shareholders’ Meeting
Board of Directors’ Meetings (Monthly)

4 Outside Directors
8 Internal Directors

Total: 12

Discussions about Operational Policies on Business Affairs
Management Committee (Twice monthly)

Chairman and Chief Executive Officer (CEO)President and Chief Operating Officer (COO)

Committees
Risk Management Committee
Compliance Committee
Information Asset Management Committee

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)

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

Internal Audits
Inspection Department

Discussions about Operational Policies on Business Affairs
Operating Committeeof the Company(Twice monthly)

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

Internal Control
Operations

Legal Consultation

Advisory Contracts with
Attorneys in Specialized Fields

Legal Office(As of June 24, 2021)

41

Relationship with the SDGs

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 observationand supervision 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 tomore effectively monitor management. The outside Audit & Supervisory Board members conduct audits at the premises ofregional offices and subsidiaries in the same manner as other Audit & Supervisory Board members. They also coordinate with
the Inspection Department and the independent auditing corporation employed by the Company in regard to supervision byoutside directors, audits by Audit & Supervisory Board members, internal audits, and accounting audits. To facilitate thiscoordination, 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 andthree outside Audit & Supervisory Board members; applications have been submitted to the Tokyo Stock Exchange, identifying
each of these individuals as independent officers.

Reason for Election as an Outside Director
Name

Reason for Election

Attendance at Board of
Directors’ Meetings(FY2021)

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.

14/14 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.

14/14 times

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 again as an Outside Director.

11/11 times(After the assumption of
office in June 2020)

ToshieIkenaga

Ms. Toshie Ikenaga possesses abundant administrative experience in relation to areas such as
gender equality and local government, as well as a high level of insight and ability developed during
her work as a university professor. She can be expected to contribute to enhancing andstrengthening the corporate governance of the Group, and to further improvement in corporate
value, through providing valuable opinions from a broad perspective regarding management, andtherefore the Company has elected her as a new Outside Director.

ー(Assumed officein June 2021)

Observation of Japan’s Corporate Governance Code
The Company observes the principles put forth by Japan’s Corporate Governance Code (the “Code”), which was formulatedby 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 ourefforts to observe the Code.
Going forward, we will continue to examine ways to strengthen our governance system, in line with the revisions made to
the Code.
ALSOK REPORT 2021

42

Sustainability and ESG

G: Governance Corporate Governance
Effectiveness Assessment
In assessing the effectiveness of the Board of Directors, ALSOK conducts a questionnaire survey with all directors andall Audit & Supervisory Board members as well as interviews with individual officers as necessary. In view of the opinions
collected. 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
Opinion● Composition of the Board of Directors

From a diversity perspective, ALSOK should consider
nominating female candidates for directorships. There is also
an urgent need to not only recruit talent from outside theCompany, but also to cultivate and make use of in-house talent.

● Response to climate change

Both within and outside Japan, companies’ response to
climate change is increasingly coming to be seen as very
important, and is attracting a great deal of attention. ALSOK
needs to discuss what initiatives it will be implementing inthis area in the future, and to decide on key topics.

● Regarding medium- and long-term goals
If ALSOK engaged in discussion to clarify its mediumand long-term goals, this would help to enhance
effectiveness.

Response
In June 2021, ALSOK elected a woman as a newoutside director. Going forward, ALSOK will continue
to examine the election process, including committee
establishment, etc., while attaching due importanceto diversity.

Going forward, we will be undertaking wide-ranging
discussions, covering areas such as ESG and
SDGs-related measures, endorsement of the Task
Force on Climate-related Financial Disclosures(TCFD), etc.

We will be proceeding with this kind of discussion
when formulating our Medium-Term Management
Plan.

Policies and Methods for Deciding Compensation Amounts
Compensation for ALSOK’s directors is capped at an annual limit of ¥400 million in total, as decided on at the Company’s 37th
General Shareholders’ Meeting, held on June 27, 2002 (this decision applied to compensation for seven directors), andcompensation for Audit & Supervisory Board members is capped at an annual limit of ¥120 million in total, as decided on at
the Company’s 33rd General Shareholders’ Meeting, held on June 30, 1998 (this decision applied to compensation for four
Audit & Supervisory Board members). The compensation of directors, which is determined based on the policy outlined below,
as determined by decision of the Board of Directors, includes a fixed amount, calculated according to their positions andwhether they are an outside director or not, as well as a performance-linked amount, calculated based on an evaluation of theoperational execution performance of individual directors, conducted in accordance with predetermined standards.
The compensation of Audit & Supervisory Board members is paid as a fixed amount, and the exact amounts ofcompensation are decided in accordance with standards set by the Audit & Supervisory Board.
Regarding compensation of the Company’s directors (excluding outside directors), the predetermined compensation(bonus) which is paid in June each year is equivalent to performance-linked compensation. With regard to the payment ratio, inthe case where both the Company performance payment rate and personal performance payment rate are 100%, thepayment ratio will be 20% of the total annual compensation payment amount. The fixed monthly compensation is equivalent tocompensation other than performance-linked compensation. For this, in the case where both the Company performance
payment rate and the personal performance payment rate are 100%, the payment ratio will be 80% of the total annualcompensation payment amount.
When calculating the predetermined compensation, which is the performance-linked compensation, consolidated
operating income, adjusted as described below, is used as the baseline indicator, and the payment level is determined inadvance according to the plan achievement status. In this way, the Company performance-linked payment rate is determinedby the Board of Directors while ensuring the transparency of the link with performance. The personal performance-linked
payment rate is set in line with the extent to which targets set for each individual have been achieved. Taking this as the basis,the individual payment rates are multiplied by the baseline value using the calculation formula shown below, to decide on the
final amount to be paid to each individual.

43[Baseline Indicator Composition]
Consolidated
operating income+

Share of profit of entities
accounted for using equity method+

Consolidated bonus×

Personal performancelinked payment rate

[Calculation formula for determining the amount ofpredetermined compensation to be paid to each individual]
Amount paid toeach individual=

Baselineamount×Company performancelinked payment rate

The reasons for adopting the baseline indicator noted above are as follows.
a. The main role of directors is to improve the performance of the Group as a whole, including companies that have adopted
the equity method.
b. Consolidated operating income, which excludes the impact of variation in the amount of bonus paid, can be deemed to
be a better indicator for determining Company performance.

Regarding Future Reform of the Directors’ Compensation System
Up until the year under review, ALSOK has paid directors’ compensation using the system outlined above. However, startingfrom the fiscal year ending March 31, 2022, in line with the formulation of a new Medium-Term Management Plan, in orderto further strengthen managers’ responsibility for performance and realize a management strategy that is predicated onachieving business growth over the medium and long term, besides making adjustments to the existing compensation
payment rate (by raising performance-linked compensation’s share of overall compensation), ALSOK is also incorporating
new medium- and long-term incentives into the performance-linked compensation.

a. Regarding the change in the compensation payment rate
While reducing the share of overall compensation held by non-performance-linked compensation (i.e., fixed compensation)
when both the Company performance-linked payment rate and personal performance-linked payment rate are 100% from
80% to 55%, the share of overall compensation held by performance-linked compensation is being raised from 20% to45% (of which short-term incentives will account for 30% and medium- to long-term incentives for 15%).

b. Overview of the short-term and medium- and long-term incentives
Payment rate will be calculated from the baseline indicator (consolidated operating income + share of profit of entities
accounted for using equity method + consolidated bonus), which has been used to calculate performance-linked
compensation up until now. With regard to medium- and long-term incentives, the Ccompany performance-linked
payment rate will be calculated based on the three-year average growth rate of the baseline indicator. The amount ofcompensation paid to each individual will be determined by multiplying the Company performance-linked payment rateand individual performance payment rate by the baseline amount.

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 the information 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 English-languagetranslations of financial summaries and other documentson our English-language IR website.

The Company’s
IR Website

https://www.alsok.co.jp/en/ir/
ALSOK REPORT 2021

44

Sustainability and ESG

Directors, Audit & Supervisory Board Members, and Executive Officers (As of June 24, 2021)

Directors
Atsushi Murai

Yukiyasu Aoyama

Chairman and
Representative Director

President and Representative
Director
Senior Executive President

Chief Executive Officer(CEO)

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)

Ikuji Kayaki

Hirohisa Hokari

Vice President andRepresentative Director(Senior Executive Vice President)

Director(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)

Deputy Chief Officer ofBusiness 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. 2021 Chief Officer of Regional Division (Ⅵ)

45

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, andCorporate 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)

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)

Director(Senior Executive Officer)

Human Resources Affairs
General Affairs/PR
Tokyo 2020 Olympic andParalympic Games
Promotion Affairs incharge of Promotion
Corporate Ethics
Compliance
Risk Management
Information Assets
Management
Management Company

Chief Officer of Regional
Division ( II )Deputy Chief Officer ofBusiness 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 (Current)

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 of Business Promotion (West Japan Area) (Current)
April 2020: Chief Officer of Regional Division ( II ) (Current)

Motohisa Suzuki

Koji Kishimoto

Director(Senior Executive Officer)

Director(Senior Executive Officer)

Chief Officer ofSecurity Operations
Structural Reform ofTransportation Security
Services
Chief Officer ofTokyo 2020 Olympic andParalympic Games
Promotion Affairs

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)

ALSOK REPORT 2021

46

Sustainability and ESG

Directors, Audit & Supervisory Board Members, and Executive Officers (As of June 24, 2021)

Directors (Outside Directors)
Hideharu Kadowaki

Toyoaki Ando

Director(Outside Director)

Director(Outside Director)

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. 2018)
Jun. 2018: Joined the Company as Outside Director (Scheduled to resign in Jun. 2021)
Dec. 2019: External Director, Aucfan Co., Ltd. (Current)

Jun. 2009: Executive Officer, Tokio Marine & Nichido Fire Insurance Co., Ltd.
Jun. 2011: Managing Executive Officer, Tokio Marine & Nichido Fire Insurance Co., 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(Resigned in Jun. 2019)
Jun. 2019: Joined the Company as Outside Director (Current)

Hirotomo Suetsugu

Toshie Ikenaga

Director(Outside Director)

Director(Outside Director)

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. (Scheduled to resign in Jun. 2021)
Jun. 2020: Joined the Company as Outside Director (Current)

Apr. 1987: Joined the Economic Planning Agency
Sep. 2010: Director, Policy Evaluation and Public Relations Division,
Minister’s Secretariat, Cabinet Office
Apr. 2012: Professor, Hosei Graduate School of Regional Policy Design
Apr. 2014: Director, Cabinet Office
Sep. 2014: Director, General Affairs Division, Gender Equality Bureau, Cabinet OfficeJan. 2016: Vice-Governor, Shiga Prefecture (Resigned in Jun. 2018)
Jul. 2018: Director-General, Gender Equality Bureau, Cabinet Office(Resigned in Aug. 2020)
Jun. 2021: Joined the Company as Outside Director (Current)
Outside Audit & Supervisory Board Member, SHIMIZU CORPORATION(Scheduled to be inaugurated in Jun. 2021)

Executive Officers
Kazuhide Shigemi

Kazumi Suzuki

Takashi Kumagai

Norihiko Mizutani

Tetsuya Tsuburaya

Yutaka Miyajima

Corporate Planning &Administration
Strategic Business

R&D Engineering Affairs

Deputy Chief Officer of Business
Promotion Division Long-term Care
President and Representative
Director of Life Holdings Co., Ltd.
President and Representative
Director of Life Co., Ltd.
President and Representative
Director of MBIC Life Co., Ltd.

Deputy Chief Officer of Business
Promotion Division Central Japan
Area
General Property Management
and Installation
Business Promotion in Central
Japan Area
Business Promotion of General
Property Management andInstallation

General Manager of General
Affairs Department
Second in Charge of General
Affairs

General Manager of Corporate
Planning & Administration
Department
Second in Charge of Corporate
Planning & Administration

Senior Executive Officer

47

Senior Executive Officer

Senior Executive Officer

Senior Executive Officer

Executive Officer

Executive Officer

Audit & Supervisory Board Members
Akira Kono

Shinichiro Nakano

Audit &
Supervisory Board Member

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

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: General Manager, Risk Management Division, The Norinchukin Bank
Jun. 2012: General Manager, Planning Management Division, 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)
Apr. 2019: Auditor, Kyodo Housing Loan Co., Ltd. (Resigned in Jun. 2019)
Jun. 2019: Standing Advisor, The Norinchukin Bank (Resigned in Jun. 2019)
Joined the Company as Outside Audit & Supervisory
Board Member (Current)

Michiko Nagasawa

Yoshiaki Nakagawa

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

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

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)

Sep. 1990: Director, CFO, Matsushita Radio Singapore Pte. Ltd. (Resigned in May 1996)
Jan. 2001: Chief Accountant, China Hualu Matsushita AVC Co., LTD.
(Resigned in Jan. 2004)
Apr. 2009: Executive Officer, Panasonic Corporation
Apr. 2011: Managing Director, Panasonic Corporation (Resigned in Jun. 2014)
Apr. 2014: President, SANYO Electric Co., Ltd. (Resigned in Mar. 2017)
Apr. 2017: Corporate Advisor, Panasonic Corporation (Resigned in Mar. 2018)
Apr. 2018: Special Advisor, Hardlock Industry Co., Ltd. (Current)
Jun. 2020: Outside Auditor, ASANUMA CORPORATION (Current)
Aug. 2020: Advisor, Uokuni Food Services Co., Ltd. (Current)
Jun. 2021: Joined the Company as Outside Audit & Supervisory Board Member(Current)

Naoki Hyakutake

Eiji Kuwabara

Hiroyoshi Yoshida

Seiji Ono

Yoshio Kumazaki

Hiroyuki Ono

General Manager of Human
Resources Department
Human Resources

R&D Planning

General Manager of Tokyo 2020
Olympic and Paralympic Games
Promotion Affairs
Second in Charge of Security
Operations Tokyo 2020 Olympic
and Paralympic Games
Promotion Affairs

Second in Charge ofCorporate Customer
Home ALSOK

Chief Officer of Regional Division ( Ⅰ )Second in Charge ofMetropolitan Area

Chief Officer ofRegional Division ( Ⅲ )Ken Takahashi

Kengo Takeda

Chief Officer ofRegional Division ( Ⅴ )Chief Officer of Regional Division ( Ⅸ )Executive Officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Yutaka Komatsu
Executive Officer

President andRepresentative Directorof ALSOK HOKKAIDO CO., LTD.

ALSOK REPORT 2021

48

Financial Information

Financial Review■ Review of Fiscal 2021

security of our customers and of society as a whole, in orderWith regard to consolidated performance in fiscal 2021, partlyof each individual customer and of society, we have continued

as a result of M&A activity, consolidated net sales increased by
2.1% year-on-year to ¥469,920 million, operating income
increased by 1.1% year-on-year to ¥37,182 million, ordinary
income increased by 0.9% year-on-year to ¥39,212 million,
and profit attributable to owners of parent increased 3.5%
year-on-year to ¥25,014 million. Net sales increased for theto develop and deepen all of our related business, for example
by undertaking field testing of ways to take our security
services to a higher level, such as the effective utilization of
local 5G service and drones.

10th consecutive fiscal year. Profit also reached a record highMedium-Term Management Plan
Financial Goals of Grand Design 2025

at each profit level, and profit attributable to owners of parent

ALSOK formulated the Grand Design 2025 Medium-Term

11th consecutive fiscal year, and reached a record high for theincreased for the 9th consecutive fiscal year. ALSOK focuseson ordinary income margin and consolidated return on equity(ROE) as indicators for evaluating the achievement ofmanagement targets. For the three-year implementation
period of the Grand Design 2020 Medium-Term Management
Plan (FY2019–FY2021), a target of around 8.0% was set forordinary income margin, and a target of 10.0% for ROE; in themost recent consolidated fiscal year, ordinary income margin
was 8.3%, and ROE was 9.6%.
In fiscal 2021, there was a pronounced deterioration in theeconomy in Japan, due to the impact of the COVID-19
pandemic. This was followed by a “K-shaped recovery” inwhich some sectors and enterprises saw an improvement intheir performance while others did not. In this environment, the
ALSOK Group, as an operator of service businesses related tothe safety and security of society (including the Security
Services business, the General Property Management andFire Protection Services business, and the Long-Term Care
Services business), has continued to provide its services in an
appropriate manner while taking adequate infection prevention
measures. Aiming to become a resilient integrated safety andsecurity solutions provider that supports the safety and

Net Sales

Management Plan in May 2021. In order to respond to growing
safety and security needs in a society where risks are
becoming increasingly diverse, ALSOK is promoting theinnovation of its security business model and aiming tobecome a resilient integrated safety and security solutions
provider, and is working to enhance its capacity to respondeffectively to the safety and security needs of customers andof society as a whole, implement digitization and utilization ofdata, establish a work environment where employees can play
an active role, and strengthen the efforts of sustainability
initiatives. As a medium-term financial target, ALSOK is aiming
to achieve ROE of at least 10%. With the aim of raising ROE,
our basic policy is to boost profitability, with a target of raising
the consolidated operating income margin to at least 10% overthe medium term, while maintaining stable dividend payments,
with a target dividend payout ratio of 30%. The fact that the
ALSOK Group has been able to maintain a stable capital
adequacy ratio as of the end of each of the last fiveconsecutive fiscal years has been evaluated as being the resultof ALSOK’s efforts to maintain fiscal discipline, while giving due
weight to the interests of both shareholders and creditors.

Ordinary Income¥469.9 billion

YOY

Up

(Billions of yen)

2.1%

¥469.9 billion

480¥39.2 billion

YOY

Up

0.9%

(Billions of yen)

¥39.2 billion

40

360

30

240

20

120

10

0

0

2017

49

to meet the diversifying, intensifying safety and security needs

2018

2019

2020

2021 (FY)

2017

2018

2019

2020

2021 (FY)On the basis of the above, the consolidated performance

To respond effectively to various social problems andforecasts for the ALSOK Group in fiscal 2022 are for net sales

needs relating to safety and security, ALSOK undertakes

to rise by 6.5% year-on-year to ¥500,500 million, operating

research in order to address issues such as labor shortages

income to rise by 13.2% year-on-year to ¥42,100 million,

resulting from the trend toward smaller families and the aging

ordinary income to rise by 10.9% year-on-year to ¥43,500

of the population, the increased frequency of natural disasters,

million, and profit attributable to owners of parent to rise bycrime targeting women and children, and increasingly

9.9% year-on-year to ¥27,500 million.

sophisticated cyber-crime. We are also undertaking
development of products, etc., to help combat the COVID-19
pandemic, and we are constantly responding to changing

Policy on Growth Investments(Capital Investments/Research and Development)
ALSOK made capital investments of ¥13,641 million in total inproperty, plant and equipment and intangible assets in fiscal
2021 to respond to business expansion particularly in security
services and to improve capabilities. These investments mainly
consist of ¥7,106 million in machinery and equipment used inelectronic security services, ¥496 million in buildings, ¥977
million in furniture and fixtures, ¥702 million in software.
Research and development are conducted for the purposeof contributing to the improvement of profitability and based on
the basic policy of capturing increasingly diverse market needs
and promoting the development of technologies and productsthat have market competitiveness. Research and development
expenses for fiscal 2021 were ¥575 million in total andpertained mainly to Security Services. It should be noted that
the Research and Development Division of the Company iscircumstances in society.

■ Shareholder Return Policy
The Company considers the provision of returns toshareholders 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 andcapital 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 tothe approval of the Board of Directors and the General
Shareholders’ Meeting, respectively.

conducting activities not falling under research or development
such as survey, planning, intellectual property management,
and quality control as an integral part of research anddevelopment activities. If we add the amount of expenses forthese activities to the amount of research and development
expenses, the total amount would be ¥1,299 million.

Capital Investments

Dividends per Share¥13.6 billion

YOY

Down

3.0%

¥72

(Billions of yen)

(Yen)

20

100

¥13.6 billion

15

YOY

Up

¥2
¥72

80
60

10
40
5

0

20

2017

2018

2019

2020

2021 (FY)

0

2017

2018

2019

2020

2021 (FY)ALSOK REPORT 2021

50

Financial Section

Management Indexes
2011

2012

2013

2014

Net sales

279,272

304,723

315,564

328,209

Cost of sales

209,364

232,812242,410

248,900

Gross profit

69,90871,91073,15379,308Selling, general and administrative expenses

59,555

61,10061,36360,375

Operating income

10,352

10,81011,79018,932

Ordinary income

11,765

12,55814,741

20,745

Profit attributable to owners of parent

4,706

3,903

8,574

10,955Gross profit margin (%)

25.0

23.6

23.2

24.2

Operating income margin (%)

3.7

3.5

3.7

5.8

Ordinary income margin (%)

4.2

4.1

4.7

6.3

Return on assets (ROA) (%)

4.2

4.4

5.1

6.5

Return on equity (ROE) (%)

3.3

2.7

5.7

7.0

EV/EBITDA (Times)*1

1.4

1.4

2.7

5.3

Equity capital ratio (%)

50.3

51.3

52.1

46.2

Equity capital ratio on market-value basis (%)

32.0

34.8

46.5

63.5

49,311

39,27037,45571,666

20.1

34.1

36.9

36.4

Total asset turnover ratio (Times)

1.0

1.1

1.1

1.0

Shareholders’ equity turnover ratio (Times)

2.0

2.1

2.1

2.1

Tangible fixed assets turnover ratio (Times)

4.9

5.2

5.4

5.2

1,421.67

1,446.93

1,536.30

1,574.74

46.82

38.83

85.30

108.99Price-book value ratio (Times)

0.6

0.7

0.9

1.4

Price earnings ratio (Times)

19.3

25.3

16.1

19.9

Dividends per share (Yen)

20

20

25

30

Consolidated dividend payout ratio (%)

42.7

51.5

29.3

27.5

Closing stock price

905

982

1,373

2,164

27,79027,86828,05428,091

12.7

13.3

13.8

14.4

Fiscal year ended March 31

Profit and loss (Millions of yen)

Profitability

Stability

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

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

Other information
Number of employees (Consolidated)
Average number of years of continuous service (Non-consolidated)
Percentage of employees returning to work after childcare leave

90.2

93.3

97.6

92.4

CO2 emissions per sales unit (Group) (t-CO2/¥ million)*2

−

−

−

0.312

CO2 emissions volume (Group) (t-CO2)*2

−

−

−

102,31339,96838,022

38,587

41,377(Non-consolidated, total for male and female employees)

CO2 emissions volume (Non-consolidated) (t-CO2)*

2

M&A Activities

51● JAPAN FACILIO CORPORATION*1 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*2 The Group's CO2 emissions are calculated on a non-consolidated basis. The reported values may change in the future due to a review of the aggregation method and scope.
Note: Based on the “Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ Statement No. 28, February 2018), financial information for fiscal 2018 and subsequent
years has also been restated.

2015

2016

2017

2018

2019

2020

2021

365,749

381,818

413,343435,982443,535

460,118

276,116

282,880

310,704

330,493334,197

345,097

89,632

98,937

102,639

105,489

109,338

115,020

66,66069,901

74,21775,37877,05778,22422,971

29,03628,422

30,11132,28036,79524,70030,66730,30931,91333,881

38,88013,534

17,86818,33019,344

22,26924,163469,920352,811
117,108
79,92637,182
39,21225,014

24.5

25.9

24.8

24.2

24.7

25.0

6.3

7.6

6.9

6.9

7.3

8.0

6.8

8.0

7.3

7.3

7.6

8.5

6.9

8.5

8.2

8.2

8.4

9.3

7.8

9.9

9.7

9.3

9.9

10.1

10.1

13.4

8.7

10.7

8.7

8.6

48.4

51.9

51.0

55.0

56.8

57.3

110.1

175.4

108.2

134.3

119.0

124.2

73,69947,21065,59952,65847,412

51,264

28.5

30.1

54.2

25.8

18.1

26.2

1.0

1.1

1.1

1.1

1.1

1.1

2.1

2.1

2.2

2.1

2.0

1.9

5.4

5.3

5.1

4.9

5.0

5.2

1,800.15

1,805.09

1,956.25

2,155.74

2,302.38

2,425.02

134.65177.77182.37191.93219.98238.69

2.3

3.4

2.1

2.4

2.1

2.2

30.4

34.3

22.8

27.5

21.9

22.0

38

50

55

60

66

70

28.2

28.1

30.2

31.3

30.0

29.3

4,095

6,100

4,155

5,260

4,820

5,260

31,221

31,446

36,69337,51937,41737,902

14.9

15.4

15.9

16.4

16.8

17.2

96.6

93.7

91.3

98.3

98.1

98.2

0.265

0.242

0.219

0.206

0.191

0.177

96,962

92,45390,62289,73584,65581,286

39,21237,39036,64936,291

34,23832,876● ALSOK Souei Co., Ltd.
● Nippon Building
Maintenance Co., Ltd.
(Currently ALSOKFACILITIES CO., LTD.)● ANTEI CARE Co., Ltd.
(Currently ALSOKCARE CO., LTD.)● HCM Corporation(Currently ALSOKCARE CO., LTD.)● ALSOK Care &Support Co., Ltd.

● Wisnet Co., Ltd.
(Currently ALSOKCARE CO., LTD.)● PT. ALSOK BASS
Indonesia Security● ALSOK-TW East Japan
ServicesCo., Ltd.
● ALSOK Vietnam Security ● ALSOK KANTO
Services Joint Stock
DELIVERY CO., LTD.
Company● ALSOK SHOJITSUSECURITY SERVICE
CO., LTD.

● ALSOK Myanmar
Security Services
Co., Ltd.
● Care Plus Co., Ltd.
● Keihanshin Security● SOHGO KANZAI Co., Ltd. Services Co., Ltd.
● Health Support Co., Ltd.
(Currently SOHGO KANZAI
Co., Ltd.)

24.9
7.9
8.3
8.6
9.6
7.8
57.6
110.0
69,983
27.3
1.0
1.8
4.9
2,741.27
247.09
1.9
21.2
72
29.1
5,230
38,444
17.4
98.1
0.177
83,302
33,692● Life Holdings Co., Ltd.

ALSOK REPORT 2021

52

Financial Information

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

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

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

176.5
113.1
65.8

36.6

40.6

44.8

58.3

54.9

57.8

61.9

62.9

69.2

68.1

―
4.0
304.7

―
3.0
315.5

―
3.2
328.2

―
6.2
365.7

7.5
3.5
381.8

24.9
3.4
413.3

25.7
3.9
435.9

26.5
4.2
443.5

28.1
4.6
460.1

40.3
5.8
469.9

Fiscal year ended March 31

Security Services
Electronic Security Services
Stationed Security Services
Transportation Security Services
General Property Management
and Fire Protection Services
Long-Term Care Services1
Other Services
Total

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 separatelyfrom the fiscal year ended March 31, 2016 onward. Net sales amounts for fiscal years ended March 31, 2015, and prior are included under “Other Services.”

Net Sales by Client Type(Billions of yen)
Fiscal year ended March 31

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Business corporations
Financial institutions
Public institutions
Individuals 2

178.4
90.7
20.5
14.9
304.7

186.5
89.8
22.0
17.1
315.5

196.7
90.5
22.8
18.0
328.2

224.9
91.3
26.4
22.9
365.7

234.3
92.3
26.2
28.9
381.8

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

282.9
93.2
32.2
51.6
460.1

278.2
92.0
35.3
64.1
469.9

Total

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

Number of Contracts
Fiscal year ended March 31(Contracts)

2012

Security Services
Electronic Security Services 580,263
Corporate Clients
406,261
Individual Users
174,002
Stationed Security Services
2,934
Transportation Security Services
48,284General Property Management
47,913and Fire Protection Services
3Long-Term Care Services―
Other Services
8,957
688,351
Total

2013

2014

2015

2016

2017

2018

2019

2020

2021

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
4,468
77,791

990,155
540,410449,7454
4,371
79,28954,90363,00473,89881,90889,67098,044104,254

109,697

113,880―
11,989752,587―
13,725
813,048―
12,804
22,62821,23425,364
24,97627,50322,477
18,21722,28525,26325,896
29,382
29,693
962,707 1,033,029 1,093,506 1,144,280 1,185,509 1,219,380 1,244,891

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. The number of contracts for fiscal years 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 1,240,000.

Main External Evaluations

ALSOK has been recognized by external organizations as fulfilling its corporate social responsibility from an ESG perspective, andhas been selected as a component stock in related investment indicators and indices.

ALSOK has been included in the FTSE4Good
Index series, a socially responsible
investment index, for 14 consecutive years.

ALSOK has been included in the FTSE
Blossom Japan Index, an ESG investment
index, for five consecutive years.

ALSOK has been included in the MSCI JapanESG Select Leaders Index, an ESG
investment index, for five consecutive years.

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
NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF SOHGO SECURITY SERVICES CO., LTD. BY MSCI OR ANY OF ITS AFFILIATES. THE MSCI INDEXES ARE
THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.
FTSE Russell (the trading name of FTSE International Limited and Frank Russell Company) confirms that SOHGO SECURITY SERVICES CO., LTD. has been independently assessed
according to the FTSE Blossom Japan Index, and has satisfied the requirements to become a constituent of the FTSE Blossom Japan Index. Created by the global index provider FTSE
Russell, the FTSE Blossom Japan Index is designed to measure the performance of Japanese companies demonstrating strong Environmental, Social and Governance (ESG) practices.
The FTSE Blossom Japan Index is used by a wide variety of market participants to create and assess responsible investment funds and other products.

53

Corporate Information/Stock Information (As of March 31, 2021)
Corporate Information
Corporate NameSOHGO SECURITY SERVICES CO., LTD.

Head Office

1-6-6 Motoakasaka, Minato-ku, Tokyo

Established

July 16, 1965

Capital¥18,675 million

Fiscal Year-End

March 31

Employees(Consolidated) 38,444(Non-consolidated) 11,861

Business Operations Head Office/64 Branches/37 Offices/251 Sales
Offices/75 Consolidated Subsidiaries (Including
10 Overseas Subsidiaries)/14 Companies
Accounted for by the Equity Method(Including 3 Overseas Subsidiaries)

Stock Information
Total Number of
Shares Authorized

300,000,000

Number of Shares
Issued102,040,042(Including 782,122 shares of treasury stock)

Number of Shareholders 10,463
at the End of the Preceding
Fiscal Period
Stock ListingFirst Section of Tokyo Stock Exchange

Securities Code2331

Minimum Trading Lot 100

Distribution of Shares by Shareholder TypeTreasury Stock
0.8%

Securities Companies 0.8%

Individuals
and Other
17.6%

Financial Institutions
34.6%

Foreign Investors
22.6%

Domestic Corporations
23.7%

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

Name

SOHGO CORPORATION
Japan Master Trust Bank, Ltd. (Trust account)
Saitama Machinery Co., Ltd.
Custody Bank of Japan, Ltd. (Trust account)
Kamakura Corporation
Employees Shareholding Association
Custody Bank of Japan, Ltd.
(as trustee for Mizuho Bank Ltd. Retirement Benefit Trust
Account re-entrusted by Mizuho Trust and Banking Co., Ltd.)
Kizuna Corporation
Atsushi Murai
SMBC Trust Bank Ltd. (as trustee for retirement benefitof Sumitomo Mitsui Banking Corporation)

7,388
6,390
5,283
5,177
4,150
3,712

7.29
6.31
5.21
5.11
4.09
3.66

2,961
2,950
2,885

2.92
2.91
2.84

2,735

2.70

Note: Each controlling share is calculated based on the total number of shares
excluding the number of treasury stock (782,122 shares).

ALSOK REPORT
Comprehensive

ALSOK Report 2021 has been constructed as an integrated report that compiles 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 othertopics with the aim of obtaining the opportunity to deepen our engagement withshareholders, investors, and other stakeholders.
In addition to describing the state of management from an economic perspective, thisreport also explains the ALSOK Group’s environmental, social, and governance (ESG)
initiatives as well as the various CSR activities the Group carries out to contribute to theinternational society’s drive to achieve the United Nations’ Sustainable Development Goals(SDGs), along with the Group’s approach to achieving growth through sustainable value
creation and its business structure that supports medium- to long-term management,
business strategies, and growth.
Data and more detailed information on corporate activities that were not included in thisreport are available on the Company’s corporate website.

Focused

Editorial Policy

Investor Relations
CSR

Reporting MediaThe Company provides reports in the forms of a pamphlet and a website, making full use ofcharacteristics of the respective media. In the pamphlet version, items are narrowed down tothose of higher importance or with greater interest among readers and the explanations onthem 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 andother matters in general.

Guidelines Referred to●International Integrated Reporting Council (IIRC), International Integrated

Reporting Framework●Ministry of Economy, Trade and Industry (METI), Guidance for Collaborative

Value Creation●Japan Standards Association (JSA), ISO 26000:2010 Guidance on Social
Responsibility●Global Reporting Initiative (GRI), Sustainability Reporting Standards●Ministry of the Environment (MOE), Environmental Reporting Guidelines 2018

Importance to the ALSOK Group and stakeholders

Information for Shareholders and Other Investors

For more information on management
policies, financial and business results, IRlibrary, and stock information, please visit our
website.
IR website:

https://www.alsok.co.jp/en/ir/
CSR and Social Contribution Activities
For more information on the activities we are
implementing through our core business inline with ISO 26000, please visit our website.
CSR website:

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

ALSOK was 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 andPlanning."
The Company has long contributed to the promotion of sports in Japan by producing many of the athletes
who have represented the country in such Olympic sports as judo and wrestling. Leading up to Olympic andParalympic Games Tokyo 2020, we will continue to support the efforts of our athletes. During the event itself,
we will contribute to the event's success through rigorous security provided by an all-Japan team.

Tokyo 2020 Official Partner (Security Services and Planning)

ALSOK REPORT 2021

54

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• OLM SYSTEM, TAKURUS, MMK, and REBORG are a registered trademark of SOHGO SECURITY SERVICES CO., LTD.