ALSOK REPORT

2022[Fiscal Year Ended March 31, 2022]

SOHGO SECURITY SERVICES CO., LTD.
Securities Code: 2331

ALSOK Management Philosophy
ALSOK was founded in 1965, one year after its founder Jun Murai, who was in charge of managing
the 1964 Tokyo Olympics, strongly felt the need for a security company in Japan. The company wasborn out of the desire to ensure the safety of Japan by Japanese people.
Based on our founding principles of “arigato no kokoro” (a feeling of gratefulness andgratitude) and “bushi no seishin” (a samurai spirit), ALSOK devotes itself to protecting thesafety and security of its customers and of society as a whole. This spirit has been passed down
through the generations to all of our employees, and the entire ALSOK Group continues

to pursue these ideals to this day.

ALSOK Charter
Management
Philosophy

Management
Guidelines

Based on two core principles exemplified by “arigato no kokoro”*1(a feeling of gratefulness and gratitude) and “bushi no seishin”*2(a samurai spirit), we devote ourselves to protecting the safety and securityof our customers and of society as a whole.
1. Fundamental Spirit
Under any condition that we face, we work hard to live by a fundamental spirit that reflects our management
philosophy— as exemplified by a feeling of gratefulness and gratitude and a samurai 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 motivationin our employees and living up to shareholder expectations through attractive profit growth.

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

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

Code of
Conduct

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

(Revised in July 2015)*1 Human beings in society agree to live and let others live. The spirit of gratitude is a humble feeling of thankfulness to all the people and things around ourselves.
*2 The samurai spirit embodies a strong and honorable concept of discipline, purpose, and the will to succeed and develop.

CONTENTS

ALSOK REPORT 2022

Overview and Vision

00
02
08
10
12
16
18
20
22
24
26

ALSOK Management Philosophy
Message from Top Management
ALSOK’s History of Value Creation
Financial and Non-Financial Highlights
About Our Business Operations
List of ALSOK Products and Services
ALSOK’s Value-Creation Model
ALSOK’s Strengths/ALSOK’s Four Principles
New Products and Services from ALSOK
Quality Improvement Initiatives
Solving Social Issues through Business Activities

Sustainability and ESG

30
33
34
37
38
40
44

Sustainability and CSR Management
Supply Chain Management
Increasing the Value of Our Human Resources/Building a Comfortable
Workplace Environment
Social Contribution Activities for Local Communities
Consideration for the Global Environment
Corporate GovernanceDirectors, Audit & Supervisory Board Members, and Executive Officers

Financial Information

48
53

Financial Section
Corporate Information/Stock Information/Editorial Policy

ALSOK REPORT 202201

Overview and Vision

Sustainability and ESG

Financial Information

Message from Top Management

Pursue New Possibilities for the ALSOK Group
Representative Director, Group CEO
and CTO (Chief Technology Officer)

Representative Director, Group COO

Tsuyoshi Murai

Ikuji Kayaki

In June 2022, ALSOK transitioned to a new management structure. As the Tokyo 2020
Games are over and business conditions are changing drastically, Group CEO Tsuyoshi Murai
and Group COO Ikuji Kayaki discuss various themes.

Theme 1Thoughts on Being Appointed to Top Management Positions

Inheriting the spirit of our founding will lead tofuture growth

Olympics were held without incident, it was primarily the police

Murai: In June 2022, I was appointed Group CEO and Mr.

security firms still had a small presence at the time. 57 years

Kayaki was appointed Group COO. Basically, I will be inlater, the atmosphere of the Olympic and Paralympic Gamescharge of the basic management of the ALSOK Group as aTokyo 2020 felt completely different. A total of more thanwhole while Mr. Kayaki will be in charge of business execution

500,000 security guards were deployed during the Games. Asof the Group as Senior Executive President. We will leada result of thorough security measures, we were able to allow

ALSOK by working closely and communicating well with eachthe event to be conducted safely without any serious incidents

other.

that could threaten Olympic operations. This was due to theand student volunteers who were responsible for that sinceFounded in 1965, ALSOK has been in existence for 57

hard work of ALSOK and other security companies, which I

years. Jun Murai, the founder of the Company, was in charge

feel was clearly apparent to everyone. After 57 years, I realizedof operations during the 1964 Tokyo Olympic Games. That

once again that Japan’s security companies and ALSOK haveexperience made him keenly aware of the need for a security

become recognized as an industry and that it can contributecompany in Japan. This led him to establish the Company into society. I feel that Tokyo 2020 was a good opportunity for

1965, one year after the Games. Although the 1964 Tokyo

ALSOK and the security industry as a whole to give back to

02

Utilizing 40 years of experience cultivated out inthe field for future growth
Kayaki: I am the first full-time employee at ALSOK to beappointed President, and this has caused me to renew mycommitment to the Company. As the person in charge ofbusiness execution of the Group, I intend to maintain goodcommunication with Mr. Murai, align my management vectors
with his, and take on the challenge of future growth.
I joined ALSOK in 1982. Since joining the company, I havespent time in the sales field. Taking advantage of thisexperience, even after assuming the position of Director in
2016, I have worked to grasp what is happening in the field
through conversations with many employees and by listening
to the opinions of customers on various occasions. Even after
assuming the position of President, I will continue to takethe society from which it has gained so much trust.
I understand that ALSOK’s growth over the past 57 years

advantage of the on-site experience I have cultivated over the
past 40 years to firmly commit to solving customer issues

has been the result of carefully nurturing the spirit of ourwhich will lead to future growth. In addition, I will further

founding. In that sense, I would like for us to inherit what ourdevelop the business foundations built up by the previous

predecessors created and continue to develop our business

Chairman and President, enhance the profitability of the Groupso that we can become a company that is needed even morethrough M&A, and further strengthen the Group in the future. I

by society.

recognize that this is my mission.

Looking at society at present, we are entering an era of

I also intend to promote a “multi-engineering”*1 approachhigh uncertainty, in which it is difficult to predict the future ofthat comprehensively provides services other than security by

the world as a whole, due to the COVID-19 pandemic andutilizing the nationwide network we have built to monitor andheightened geopolitical risks. The number of reported penal

respond to customers 24 hours a day, 365 days a year.

code offenses compiled by the National Police Agency has

In addition, as a major security company responsible fordecreased significantly compared to 20 years ago, meaning

security operations in Japan, ALSOK is responsible forthat public security in Japan has clearly improved. However,promoting Japan’s high quality security to the world. While last

the number of people who feel that public security is

year’s Tokyo 2020 Games certainly demonstrated that Japan is“deteriorating” or “not improving” has not increased. It isa safe and secure place, it is also true that confidence in Japan’s

inconceivable that the improved security situation will reduce

public security of Japan, the safest country in the world, has

the need for security or that security services provided so far

been shaken following the shooting of a former prime minister inwill become less strict. As long as there is a need to resolve

July 2022 during a campaign speech. ALSOK also believes thatanxiety about safety and security, I think that the room for

it is necessary to enhance security planning and introduce

ALSOK to play an active role will continue to increase in thesystems that make full use of DX in event security.

future.
In addition, recently, in the midst of the COVID-19 pandemic,
remote-based communication has increased in addition to
face-to-face communication, adding depth to economic
activities. ALSOK has long been expanding its business byfocusing on solving issues in the field, which, due to the natureof its business, should be considered the “last mile.” In today’s
era of remote economic activities, I believe that the
expectations for essential businesses like ours that provide
face-to-face problem-solving services will only increase.
Specifically, as a real point of contact, there is an increasingneed for security services as well as a variety of other services. I
believe that there will be more opportunities for us to contributeto society, including these points, and we will firmly seize thesebusiness opportunities and link them to future growth.
*1: Agency services, such as inspection and maintenance work for facilities and equipment,
other than security
ALSOK REPORT 2022

03

Overview and Vision

Sustainability and ESG

Financial Information

Message from Top Management

Theme 2

Progress and Future Prospects of the Medium-Term
Management Plan (GD2025)

Review of the Previous Period

inspections and automated patrols using drones. In the General

Kayaki: We will continue to focus on Grand Design 2025, ourProperty Management and Fire Protection Services segment, we

five-year Medium-Term Management Plan starting in fiscal 2021,

are strengthening our facility management operations by providing

even after the new management structuring. In order to transformbuilding maintenance services such as cleaning and inspections,our business model to meet the growing safety and security needs

as well as various types of facility construction in Japan andof society amid diversifying risks, this plan is based on four basic

overseas. In the Long-Term Care Services segment, we havepolicies: “Enhancement of Response Capacity for Diverse Safety

begun to provide services to strengthen disaster and infectionand Security Needs of our Customers and Society,” “Digitization

control measures at nursing care facilities, including theand Utilization of Data,” “Establishing a Work Environment Where

formulation of BCP manuals required by new legal revisions.

Employees Play an Active Role,” and “Strengthen the Efforts ofAccelerating efforts in DX and data science fields

Sustainability.” In terms of financial targets, we focus on the ratio

Murai: In summing up the first year of the Medium-Termof ordinary income to sales and the return on equity (ROE) with aManagement Plan, my honest impression is that things did nottarget of 10.0% or higher for both indicators.

necessarily go as planned. The Tokyo 2020 Games were not
run in the way we had originally envisioned, with discussions

In the first year of the plan, the fiscal year ending March 31,
2022 (the previous fiscal year), net sales increased for the 12

about spectators and various events being significantly

consecutive year and reached a record high for the 11changed while also being affected by the rampant COVID-19

consecutive year. In addition, profit also reached record highs

pandemic. As a result, we had to spend a considerable amountat each profit level, and profit attributable to owners of parentof time and effort in dealing with these issues. As we prioritizedincreased for the tenth consecutive year.

the investment of management resources in response to theTokyo 2020 Games, we feel that the measures of the

In the Security Services segment, we have launched ahigh-value-added optional services, such as remote image patrol,

Medium-Term Management Plan in line with the original planfor ALSOK-G7, a Electronic Security Service for corporate

have been put behind schedule. Moving forward, we will

customers, and are also working to develop infrastructure facility

accelerate efforts in fields such as DX and data science.

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

Basic Policies

Financial Goals

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 play an active role
■Diversifying Human Resources

・Capability Development ・Diversifying Human Resources
・Provision of diverse work styles

4 Strengthen the efforts of sustainability■Enhancement of Governance ■Approach to the SDGs
■Approach to Environmental Issues

Performance

Targets(fiscal year ended March 31, 2022)(fiscal year ended March 31, 2026)

Consolidated net sales

Approx.
¥650.0 billion¥489.0 billion
Consolidated ordinary
incomeApprox.
¥65.0 billion¥44.7 billion
Consolidated ordinary
incomeFuture Targets

9.2%

More than 10%

Net sales:
Approx. ¥1 trillion

10.0%

More than 10%

Income:Approx. ¥100 billion

ROE

Investment Plan (Based on Cash Flow)
Items

FY2022–FY2026

Research and development,
digital-related investments, etc.

¥70.0 billion

M&A, etc.

¥50.0 billion

Reference (Forecast of increase in cash)

FY2022–FY2026 increase in cash

For detailed data on the Medium-Term Management Plan GD2025, please visit our website.
https://www.alsok.co.jp/ir/management/plan.html

04

Payout ratio of 30%
as a target to maintaina stable dividend¥110 billion

While the results for the fiscal year ending March 31, 2022 are as

the gap between the target figures and the current situation. We will

explained by Mr. Kayaki, I also believe that we need to make further

steadily proceed with what we need to do now with a firm eye on theefforts to raise our financial targets for the final year of the plan, such

essence of the Medium-Term Management Plan. Even if businessas 650 billion yen in consolidated net sales and 65 billion yen in

conditions change, we basically intend to proceed with each of theordinary income. However, we will not be at the mercy of bridging

measures in the Medium-Term Management Plan as planned.

Theme 3

ALSOK’s Corporate Culture and Strengths

Employees that harness ALSOK’s fundamental ethosof “arigato no kokoro” (a feeling of gratefulness andgratitude) and “bushi no seishin” (a samurai spirit)
will demonstrate the Company’s potential.
Kayaki: Although ALSOK’s mission is to protect the lives andproperty of its customers, I feel that the Company has an
outstandingly high aspiration to respond in order to maintain public
safety in the event of a disaster. Since ALSOK was founded,“arigato no kokoro” (a feeling of gratefulness and gratitude) and“bushi no seishin” (a samurai spirit) have been the fundamental
principles of management, and these principles have been deeply
ingrained in the minds of our employees through training and otheractivities. I think this is really something that we can be proud of. In
1995, I was in charge in operations where the Great Hanshin-Awaji
Earthquake occurred. After confirming the safety and security of
their families, local employees came to work surmounting alldifficulties. Together with supportive employees from all over thecountry, they worked as best they could to maintain public
safety*2. In the aftermath of the Great East Japan Earthquake that
occurred in 2011, ALSOK employees patrolled affected areas day
and night to protect customers from crimes of opportunity,
keeping them safe and secure. In addition, employees collectedcash from ATMs and other locations, including areas near the
Fukushima Daiichi Nuclear Power Plant, and made efforts toprevent the damage from becoming worse. I strongly feel that thishigh level of awareness among our employees leads to ourstrength as a company and being trusted by society. The
motivation of each and every employee will be further enhanced
by society’s high regard and trust for their activities.
Furthermore, considering that ALSOK employees will havemore opportunities to provide services other than security tocustomers in the future, we need to take on new challenges in
addition to holding on to the high aspirations that we havedemonstrated in maintaining public safety during disasters as I
have just mentioned. In addition to service quality, we need to
pay attention to customer hospitality, for example, ensure that
we are courteous to customers when responding to ATM
failures at banks, etc., provide the first line of response forbuilding facility management services, and support elderly
customers who need assistance at home security sites. We
are in the process of cultivating this mindset.

ALSOK’s strength is our human resources that canstay the course with a sense of ownership
Murai: I will basically repeat what Mr. Kayaki just said but use
different words: ALSOK’s greatest strength lies in the fact that manyof our employees are able to stay the course in times of crisis with a*2: Total number of supporting employees: 9,087

sense of ownership. Many ALSOK employees take the initiative tovoluntarily participate in volunteer activities during disasters. There
are many employees who of course can choose not to participate
as a volunteer but opt to do what needs to be done. Employeeswith this mindset are sometimes troubled by the fact that customers
think they are going overboard with the level of service that they
provide. However, I feel that the strength of our organization lies in
the fact that many of our employees do what they think is right. I
think the reasons that we have been able to continue to grow arebecause this type of corporate culture has existed since thecompany’s founding and because of being blessed with favorable
business conditions. As I mentioned earlier, we spent more time andeffort than expected in supporting the Tokyo 2020 Games. However,I still witnessed many ALSOK employees stepping up to the platequickly displaying leadership on the front lines. This kind of
corporate culture is truly one of ALSOK’s strengths and I strongly
believe that this kind of corporate culture should continue to berespected and promoted in the future.
Another strength of ALSOK is the fact that we have been
blessed with good customers.This is reflected in the highretention rate of our services. Once we receive a contract andwork hard to provide security services, the majority ofcustomers continue the contract with us. It is a great strengthand asset to be able to do business with customers for a longtime based on their trust in ALSOK’s services. In addition to
being able to learn a lot from our customers, the ability toalways perceive their needs will lead to the development of
new services. I believe that we should make more use of thesestrengths in our future management activities.
On the other hand, there are also challenges on the humanresource development front that need to be addressed if weare to achieve further growth in the future. If we look at itwithin the framework of the security industry, we have required
and will continue to require human resources who are properly
aware of their set mission and who can stand firm to the end
in order to fulfill their duties. However, if we want to go a little
further, we also need people who can see the situation out inthe field, analyze it on the spot, and make decisions on theirown to make things head on course. In an era of increasingly
complex business structures, it is necessary to have humanresources who can judge whether something is right or wrong
and act appropriately in the field when the assumptions initiallyenvisioned by top management are actually different from theactual conditions on the ground. Although this is a theme thatfaces challenges, I believe that the development of suchhuman resources will be an issue for the future.
ALSOK REPORT 202205

Overview and Vision

Sustainability and ESG

Financial Information

Message from Top Management

Theme 4Governance and Sustainability

Tsuyoshi Murai

Representative Director, Group CEO and CTO (Chief Technology Officer)

Promoting ALSOK-style Governance andSustainability

mission is to protect the safety and security of our clients

Murai: I think there are still many issues to be addressed withsince more and more customers are aiming to realize aregard to the development of our governance structure. In

sustainable society through their business activities, we have

response to Japan’s revised Corporate Governance Code, I

become more aware that we are indirectly contributing to thebelieve that ALSOK should seek a form of governance that isrealization of a sustainable society by serving such customers.

appropriate for the Company.

I believe this is an important point in explaining to employees

I feel that the essence of what society seeks in terms ofgovernance is “transparency.” The question is whether there isbased on the contracts we have with them. Recently, however,

the Company’s significance to society.

is acceptable to stakeholders. In that sense, it is important to

Giving Thought to Thorough Compliance,
Enhancement of Risk Management, and Gender
Equalitywidely disseminate information about ALSOK that is accurate.

Kayaki: With the new management structure in place, theI would like to see us establish such a system and make

Board of Directors has been made aware of the manyefforts to communicate this meaning with transparency in

expectations that exist regarding the promotion of the newmind.

management structure and provided with several hints

a well-developed governance structure in place and whether it

In addition, under the new management structure, I havechaired the Board of Directors meetings and am aware thatregarding the changes that need to be made.
As various risks, such as geopolitical risks increase, we

there is a lively exchange of opinions at these meetings,

need to be aware of current circumstances and improve risk

including input from outside directors. The opinions of the

management. Since employees are also important protagonists

outside directors in particular are very thought-provoking andin regard to governance, we will thoroughly foster awarenessprovide many insights.

by sharing basic ideas and through education. Another

Regarding sustainability initiatives, one of the basic policies ofimportant issue is gender equality*3. Since security operations

the Medium-Term Management Plan, I believe that the security

have long been conducted primarily by men, special

business itself is directly linked with solving social issues.

consideration must be given to promoting the advancement of

Therefore, I feel that ALSOK should play a variety of roles not

women in the business. Currently, we are actively receiving

only in providing safety and security but also in protecting the

input from outside board members based on female

environment. We will continue to promote ESG and contribute toperspectives. Recently, we have been offering tours of our

the SDGs through the expansion of our core business.

business sites and receiving valuable opinions regarding theAlso, as a private security contractor, ALSOK’s main
06

development of fields in which women can play an active role.
*3: Sustainable Development Goal 5: Gender equality

Theme 5

Message to Stakeholders

Making full use of the strong infrastructure we havedeveloped over the years to expand our services

nationwide. By making full use of DX, we can further

Kayaki: The business conditions surrounding our company inpeople will pay close attention to ALSOK’s efforts to expand

Japan and overseas are constantly changing.There is no end

into new business areas in the future.

to counting risks, such as soaring resource prices andheightened geopolitical risks caused by Russia’s invasion of

The entire Group will take on the challenge of doing
many things that need to get done

Ukraine, rising inflation, a sharp depreciation of the yen, a

Murai: At first, we will work hard on each measure of theshortage of semiconductors, and disruption of supply chains.

Medium-Term Management Plan to increase profitability andUnder such difficult business conditions, as President, I tell

improve corporate value. We will also consider various options

employees that we need to “aim to become a business thatto enhance shareholder value in the future.

accelerate the expansion of this service field. I hope thatcan solve customer issues.” As I have already mentioned, theLooking at current business conditions again, Japanesebusiness conditions of our customers are constantly changing

society as a whole is facing a variety of challenges, such aswith problems even outside the security realm becoming more

the declining birthrate and aging population, and mostdiverse and complex. Some services can only be provided

recently, the damage caused by infectious diseases, and manythrough ALSOK’s channels while others cannot be. In somecompanies are feeling a sense of stagnation amidst acases, certain services that we normally cannot provide on ourwhirlwind of different values. I believe that there is a lot to be

own can be provided by collaborating with various companies.

done even in a society where such a sense of stagnation is

For example, in August this year, we signed a partnershipintensifying. Through our 57 years of business, ALSOK has aagreement with seven companies, mainly regional financial

strong ability to identify problems and recognize that there are

institutions in Fukushima Prefecture, to realize decarbonization

many challenges that lie ahead. However, depending on one’s

and revitalize the regional economy. Within this framework, theway of thinking, this could be a real blessing for us.

Group is in charge of construction management, installation,

I hope that our stakeholders will see the businessand maintenance of EV charging facilities. In the future, I would

opportunities and possibilities that lie ahead for ALSOK andlike to see us expand the scope of our services through suchhope that they will have high expectations for ALSOK’s

multifaceted developments.

potential to move forward as a company, looking forward to

A menu of services will be steadily added to make full use
of our 24 hours a day, 7 days a week response capabilities

solving problems and moving forward as a whole, even in
uncertain and difficult times.

and infrastructure of guards on standby at 3,000 locations

Ikuji Kayaki

Representative Director, Group COO
ALSOK REPORT 202207

Overview and Vision

Sustainability and ESG

Financial Information

ALSOK’s History of Value Creation

Helping to Resolve 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.

Net Sales■■■■ Net Sales of Security Services■■■■ Net Sales of Services Other Than Security Services¥120.1 billion*GD (Grand Design) refers to the Medium-Term Management Plan.

¥40.1 billion¥0.15billion ¥0.7 billion
1965

1970

1975

1980

Founding Era

1965-

1985

1990

1985-

1995

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 and data search functions with conventional
cash dispenser functionality

1966

1967

Began provision of transportation security
services

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

1998
1970

1975

Provided stationed security for Japan
World Exposition, Osaka 1970

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

08

1997
Developed and launched Cash Deposit Machine
On-line System, which facilitates the movementsof cash (sales proceeds and small change) andreduces related staff and equipment 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

FY2021 Net Sales¥489.0 billion
Start of GD2025¥279.2 billion¥248.3 billion¥181.2billion

GD2020GD2017
2000

1999-

2002 (Stock listing)

2005

2010

Second Founding Era

2015

2020

2021 (FY)

Third Founding Era

2010-

2012
Launched new HOME ALSOK brandof services for individual users

2013
2002

2003

Listed stock on the first section of
the Tokyo Stock Exchange

Established the new corporate
brand, “ALSOK”

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

2015

Developed and launched a new Cash Deposit andDispenser Machine Online System, enabling thepayment and changing of small change used in stores,
and enabling store owners to deposit sales proceeds
without needing to take the money to the bank2020

Launched renewed
HOME ALSOKMIMAMORISUPPORT service

2020
2005

2005

Expanded the ALSOK ANSHIN KYOSHITSU®
crime prevention class program to cover thewhole of Japan, with ALSOK staff (who areexperts in ensuring safety) assigned to giveclasses in schools, with the aim of helping tokeep children safe

Developed and launched a newautomated patrolling GUARDROBOT, making it possible toprovide a stationed security
system that incorporate robots

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

2021
Security for the Tokyo 2020 Olympic andParalympic Games was provided from Julyto September

2005

2008

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

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

2020
Launched the ALSOK-G7 (read as“ALSOK G-seven”) security system forcorporate clients
ALSOK REPORT 2022

09Overview and Vision

Sustainability and ESG

Financial Information

Financial and Non-Financial Highlights

Net Sales

Profit Attributable to Owners of Parent¥489.0 billion
Up

4.1% YOY

Ordinary income¥29.0 billion
Up

15.8% YOYDividend¥82¥44.7billion
Up

14.2% YOY

10.0%
0.4

percentage
point

YOY

9.2%
10

10¥ YOY

0.6

CapitalInvestments

Depreciation
andAmortization¥16.2 billion¥16.8 billion

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

ROA

Up

Up

Capital Investments and Depreciation and Amortization

ROE

Up

Payout ratio: 28.7%

percentage
point

YOY

Corporate Clients

548,580
460,679

Individual Users

E 0.174

CO2 Emissions per Sales Unit (Group)*Down

t-CO₂/¥ million

3.8% YOY

CO2 Emissions (Group)*

Net Sales

85,146 t-CO₂/¥489.0 billion
Down

16,699 kl
Electricity Consumption (Group) 84,546 MWh

0.4% YOYS

Fuel Usage (Group)

Employees(Consolidated)

Number of
Female Employees(Consolidated)

38,1925,519

Up 0.9% YOY

Proportion of Women in
Management Positions(Non Consolidated)

4.0%

Number of
Employees Who
Have CompletedFirst-Aid Training

Number of Participantsin ALSOK ANSHINKYOSHITSU Crime
Prevention Classes

Number of Residents in
LongTerm Care Facilities

Cumulative Total

Cumulative Total

Number of Users of LongTerm
Care and Other Services

21,770(Including Both Basic and Advanced Training)

Approx.

1,701,000

Approx.

(started in 2004)

G

6,200

21,000

Number of Directors andAudit & Supervisory
Board Members

16

Directors12(of whom 4 are outside Directors)

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

20
companies(including main company)

27001

(

One female Director
Audit & Supervisory
One female Audit &Supervisory
Board Member
Board Members 4(of whom 3 are outside Audit & Supervisory Board members)

Number of Group
Companies That Have
ISO 9001 Certiﬁcation

57
companies(including main company)

9001

Number of Group
Companies That Have
ISO 14001 Certiﬁcation

40
companies

14001

Directors’ Rate of Attendanceat Board Meetings

100%)
Number of Group
Companies That Used theInternal Reporting System

75
companies(including main company)

ALSOK REPORT 2022

11

Overview and Vision

Sustainability and ESG

Financial Information

About Our Business Operations

As a provider of services related to the safety and security of society, the Group aims to become a robust
comprehensive safety and security service business that supports the safety and security of customers andsociety as stated in its medium-term management plan Grand Design 2025. To meet the safety and security
needs of our customers and society, which are expanding as risks diversify, we are working to provide newservices that combine various service functions such as security, equipment, and long-term care.

Security Services
Electronic Security Services
This business installs alarm equipment at contracted sites, remotely monitors intrusions,fires, and equipment anomalies at the guard center via communication lines, anddispatches security guards who are on standby to respond to any abnormal situations.
As a service for corporate customers, Electronic Security Services is promoting sales of
ALSOK-G7, which is equipped with live image confirmation as a standard feature, andcontributes to customers’ manpower-saving needs by linking with a central monitoring
system in addition to optional services such as image storage, remote monitoring using
images, and equipment control from a distance.
Services for individuals include Home Security Basic, a standard model for homes that iseasy to install, and Home ALSOK Mimamori Support, a monitoring service for the elderly.
In addition, we have launched the Home ALSOK Outdoor Wireless IP Camera, which allows users to check real-time andrecorded videos through a smartphone app and can also use an optional service that requests ALSOK to rush to the scene in theevent of an emergency.
(Billions of yen)200

Net Sales¥177.2 billion
Up

Sales Composition

36.2%¥177.2billion

150

100

50

0.3% YOY

0

2020

2021

2022

(FY)

Operational Flow for Rushing to the Scene
Alarmtransmission●

ALSOK Guard Center

Customer site

Surveillance system

ALSOK’s Dispatch System

Dispatch order
Mobile terminal

Dispatch instruction
Customer site information
Continuously acquire
location information using GPS
Progress information

Rushing to the scene
Guards are sent
quickly from depots

12

Destination information is sent from the mobile
phone to the car navigation system

Nearestsecurityguard

Stationed Security Services
Security guards are stationed at the contracted facility and access control,
patrol, and monitoring are performed to prevent various accidents andrespond to emergencies and accidents. We also provide security forvarious events such as international conferences, sports competitions,parades, and personal protection for celebrities and corporate executives inJapan and abroad, meeting a wide range of needs. In addition, various
equipment (metal detectors, X-ray inspection equipment, etc.) are used toprovide more efficient and effective security.
(Billions of yen)200

Net Sales¥128.8 billion
Up

128.8

150

Sales Composition

26.4%

billion100

50

13.9% YOY

0

2020

2022

2021

(FY)

Transportation Security Services
Our Transportation Security Services business provides transport ofvaluables such as cash and securities to locations designated by contract
via cash transport vehicles. In addition to a cash transport service thatsafely transports cash and securities, we offer our Cash Deposit andDispenser Machine On-Line System, which provides total support throughstore sales cash management and our security transportation network,
contributing to customers' operational efficiency. We also offer our ATM
Management Service, in which we completely handle operation andmanagement of ATMs installed in financial institutions and convenience
stores, including cash replenishment, collection, and responding to failures.
(Billions of yen)100

Net Sales¥67.8 billion

13.9%

billion50

25

3.3% YOY

Up

¥67.8

75

Sales Composition

0

2020

2022

2021

(FY)

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

Summary of Japanese Security Services Industry(as of December 31, 2021)

Number of Security Services Companies

10,300 Companies

Approx.

■ 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■

Cases of intrusion and theft among the number of reported cases of crimes

Buildings introducing electronic security services

3,500,000

3,500,000

3,000,000

3,262,011

2,500,000

Total Net Sales¥3.5 trillion

Approx.

2,000,000
2,500,000

568,148

1,500,000

37,2401,000,000

Number of Security Guards

Approx.

590,000
40,000(of whom approx.

are females)

3,000,000

2,000,000

500,000

0

0
2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021 (Year)

Sources: “Crime Statistics (January 2021 - December 2021)” and “Overview of the Security Industry in 2021,” National Police Agency

ALSOK REPORT 2022

13

Overview and Vision

Sustainability and ESG

Financial Information

About Our Business Operations

General Property Management and Fire Protection Services
This business provides total support for building construction, operation, andmanagement, from reducing building management costs to maintaining andimproving asset value, through maintenance, management, and operation ofvarious facilities in buildings and condominiums, including pipe work, electricalwork, repair and renewal work, fire and disaster prevention work, facility
management, cleaning and sanitation, and telephone answering services. It
also sells disaster prevention supplies, infectious disease control supplies, andAEDs. In the fire protection business, we have strengthened our businesspromotion system in the fire and disaster prevention field by entering into a
capital and business alliance with Hochiki Corporation, a comprehensive fire
protection manufacturer, and Nippon Dry-Chemical Co.,Ltd., making them
affiliates accounted for under the equity method. In addition, we jointly develop
and market new products and services that meet diversifying customer needs.

ALSOK General Property Management and Fire Protection Services Features
Features
We provide total support foryour business operations, fromcost reduction to maintenanceand improvement of asset value.

1 One-stop, all-inclusive management

2 Fusion of security and equipment
5 Maximum one billion yen damage
coveragemanagement
3 Level of responsiveness that only a security company can provide(Billions of yen)100

Net Sales¥67.4 billion
Down

TOPICS

4 Cost optimization

¥67.4

75

Sales Composition

13.8%

billion50

25

1.1% YOY

0

2020

2021

2022

(FY)

Overseas Business

Since 2007, we have been developing our overseas business with a focus on Southeast Asia, where many Japanesecompanies are now doing business, and have established local subsidiaries in six regions: Thailand, Vietnam, Shanghai,Indonesia, India, and Myanmar.
We are currently expanding our business domain not only to provide security consulting, resident security services, andmachine security services using systems, but also to facility management such as disaster prevention, cleaning, and building
facility management.
In addition, we provide services not only to Japanese companies but also to local service providers and financial companies.

Net Sales¥5.0 billion(Billions of yen)
6

¥5.0

billion4

2

Up

13.7% YOY

0

2020

2021

2022

(FY)

*Sales from overseas business are included in Security Services, General Property Management and Fire Protection Services, and other service sales.

14

Long-Term Care Services
We provide a wide range of services, from home-based nursing care support(care plan creation) and home-based nursing services, such as home-visit care,home nursing, and day-care services to residents of specified facilities(pay-for-care homes with nursing care), communal living care for dementia(group homes), and home-care services for the elderly with services. In addition
to selling and renting welfare equipment, we also provide home-visit medicalmassage services for home-care patients.
In June 2022, we made ALSOK Joy Life Co., Ltd. and ALSOK Life Support
Co., Ltd. subsidiaries in order to further strengthen our Long-Term Care Services
business. Moving forward, we will continue to strengthen our management baseand expand our facilities by improving the efficiency of our Long-Term Care
Services by utilizing AI robots to support nursing care. We will also provide totalcare that other companies do not offer under the unified brand of “ALSOK
Nursing Care”.

Rose Life Takanohara (ALSOK Life Support Co., Ltd.)ALSOK Long-Term Care Services Features
1 From those who are independent to those who need nursing care, we provide high-quality services in a one-stopmanner according to changes in life stages
Security is installed in all nursing care facilities, and the response capabilities of a security company provide safety2
and peace of mind not only in normal times, but also in times of disaster(Billions of yen)
50

Net Sales¥41.6 billion
Up

¥41.6

billion40

Sales Composition

30

8.5%

20

3.2% YOY

10
0

2020

2021

2022

(FY)

Other Service
In order to respond to the development of a cashless society, as a cashless
payment provider we provide ALSOK Multi-QR Payment Solution, which canhandle multiple payments with a single app and a single device, centering on QR
code payments. In addition, we provide a variety of information security
solutions, such as the ALSOK PC Management Service for managing
information devices, which is becoming increasingly important as acountermeasure against damage caused by cyber attacks and email spoofing.
In addition, we began providing a comprehensive asbestos service in June
2022 that supports asbestos content testing. Asbestos content testing has
become stricter due to the revision of the Air Pollution Control Law.

(Billions of yen)
8

Net Sales¥6.0 billion
Up

3.8% YOYALSOK Multi-QR Payment
Solution terminal

Sales Composition

1.2%

¥6.0

6

billion

4

2

0

2020

2021

2022

(FY)

ALSOK REPORT 2022

15

Overview and Vision

Sustainability and ESG

Financial Information

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

List of ALSOK Products and Services
Main Business Areas
Electronic Security Services● Online security

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)■

Home Security BasicThe optimal multifunction system for ordinary homes, including bothcondominiums and detached houses

Security Services■

System with emergency reporting and telephone health consultation service
functions for senior citizens added

Stationed Security Services■● Patrolling● Monitoring● Security for events

■

■

■

● ATM cash replenishment and collection,

Property Management
Long-Term Care Services Generaland Fire Protection Services● In-home long-term care support

■

■

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■

In-home long-term care support
Care plan development, etc.

■

In-home care services

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

● Sale and rental of equipment for

long-term care covered by public
aid● Dispatch medical massage

Facility Management

Total support for building operation and management, including repair and renewal
work of building facilities, fire and disaster prevention work, facility management,
cleaning management, sanitation management, and telephone answering service● In-home care services● Facility care services

ATM Management Service

Total support for ATM operation and management, including replenishment
and collection of ATM cash and ATM fault responseand dealing with ATM faults

renovation work, plumbing
work, and electrical work
● Fire prevention and disaster
preparedness services● Equipment management services● Cleaning management services● Sanitation management services● Telephone answering services

Cash Deposit and Dispenser Machine On-Line System

Total solution combining store sales proceeds management functionality witha transportation security network● Transportation of cash and valuables● Building facility repair andTemporary Security

Flexibly responds to short-term security needs for international conferences,company events, etc.

● Guarding important people● Management of store sales proceeds

Stationed Security

Security guards are stationed at the client facilities. In case of emergency,
we carry out patrols, conduct monitoring, and provide facility/equipment
management for crime and disaster prevention● Access control

Transportation Security Services■

Facility care services■

Equipment for Long-Term Care Covered by Public Aid

Fee-based long-term care facilities and group homes
Sale and rental of nursing care beds, wheelchairs, handrails, walkers, etc.

● Information security■

ALSOK PC Management Service■

REBORG®-Z

An all-in-one IT asset management system● Testing services● Security robot

Security robot for facility patrolling and monitoring● Consulting services● Health Security■

ALSOK Safety Confirmation Service

Safety confirmation during and after natural disasters, and health check tools
for use during epidemics● QR Code Payment

Other Service

HOME ALSOK MIMAMORI SUPPORT■ALSOK Multi-QR Payment Solution

A cashless payment service that makes it possible to handle multiple payments
on a single device■

Animal and Bird Pest Trap Monitoring Device II

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

Office Doctor Pack■

Comprehensive asbestos service

Industrial physician service package for workplaces with fewer than 50 employees
Contracting for tasks related to asbestos investigations

■

Other

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

16Services for Corporate Clients
Electronic Security Services
・ALSOK-G7 ・ALSOK Ventilation-Facilitating Solution
・ALSOK Congestion Status Distribution Service
Stationed Security Services
・REBORG®-Z automated patrolling security robot
・ALSOK Traffic Control System
Transportation Security Services
・Cash Deposit and Dispenser Machine On-Line System
・ATM outsourcing service ・Tax payment receipt system (for local governments)
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・HOME ALSOK Premium
・HOME ALSOK MIMAMORI SUPPORT
Service Plans for Specific Purposes
・Outdoor Wireless IP Camera IP-C730 deployment
・Wiretapping device and spy camera inspection service
・MAMOLOOK・HOME ALSOK RUSUTAKU Service
・HOME ALSOK LADY’S SUPPORT・HOME ALSOK HOUSE SUPPORT (membership plan withpayments made monthly)・Tobilaphone (Automated nuisance phone blocker)
・A wide range of long-term care services

Fire Protection and Information Leakage Prevention
Fire Protection
・ALSOK aerial photography service ・BCP solutions
Disaster simulation exercises, business continuity planning (BCP)
and disaster-prevention manual development support,
and BCP and disaster-prevention manual revision
Disaster-prevention workshop, stockpile management support,
Flood Control Act compliance strategies, and emergency drill support

・Safety confirmation service ・Stockpile management
・Electric power storage system
Information Leakage Prevention
・Information security diagnostic service
・Targeted email attack response drill service
・Network monitoring service
・Website tampering detection service
・ALSOK PC Management Service

ALSOK REPORT 2022

17

Overview and Vision

Sustainability and ESG

Financial Information

ALSOK’s Value-Creation Model

Aiming to Become a Strong Integrated Safety andSecurity Solutions Provider to Support the Safety
and Security of Customers and SocietyManagement Resources
Abundant humanresources• Enhanced training system• Promotion of diversity• Number of Employees: 38,192

Management Philosophy

Outstanding
product and service
development
capabilities

Based on two core principles exemplified
by “arigato no kokoro” (a feeling ofgratefulness and gratitude) and “bushi noseishin” (a samurai spirit), we devote
ourselves to protecting the safety and securityof our customers and of society as a whole.

• Utilization of cutting-edge
technologies such as AI and ICT

Trust and Network• ALSOK brand trust• Global Service Network:

6

In
countries and regions witha focus on Southeast Asia

Strengths• Number of Depots LocatedNationwide:
Approx.

Excellent
OrganizaHumantionalResources Capabilities

3,000• Electronic Security Services
Contracts:
Approx.

1,000,000

Trust• Business Operations
Head Office/64 Branches/
37 Offices/255 Sales
74 Overseas Subsidiaries
14 companies accounted forby the Equity Method• Certifications(ISO9001, ISO14001, and ISO22301)

Sound financial
standing• Secure and sound financial standing• Equity capital ratio: 57.3%

Business
DomainServices
ProvidedElectronic Security Services

Stationed Security Services

Transportation Security Services

General Property Management
and Fire Protection Services

Long-Term Care Services

Other Service• Consolidated Net Assets:¥270,432 million• Rating (R&I): A+(As of March 31, 2022)

18

Sustainability

E Environmental

S Social

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

Medium-Term Management Plan
(FY2022-FY2026)


To meet the expanding needs forsafety and security in a society
where risks are diversifying, ALSOK
will promote the innovation of its
security business model and aims
to become a resilient integrated
safety and security solutions
provider.
1. Enhancement of response
capacity for diverse safety andsecurity needs of society
2. Digitization and utilization of data
3. Establishing a work environment
where employees play an activerole
4. Strengthen the efforts ofsustainability

Long-Term Targets

Becominga Resilient
Integrated
Safety andSecurity
Solutions
ProviderNet Sales¥1¥100

trillion

IncomebillionG Governance
ALSOK REPORT 2022

19

Overview and Vision

Sustainability and ESG

Financial Information

ALSOK’s Strengths

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

Excellent Human
Resources



ALSOK’sStrengths

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 humanresources. 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), andlong-term care provision, we focus heavily on the cultivation of expert talent. Recognizing the need to provide services thatcan be used with maximum peace of mind, we have established an internal first-aid certification system—ALSOKAssistance—to enhance the assistance capabilities of ALSOK security
staff members who need to rush to the scene quickly in emergencies.

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

Cumulative Total

782

Number of Construction Managing
Engineers, Electricians

Approx.

Approx.
Number of Employees Who
Have Attained the Rank ofExpert in Martial Arts

2,500
3,631

850

Number of Security Consultants

Cumulative Total

37

Number of Fire Protection Engineers

1,500

Number of Care Workers

Over

Approx.

2,600

Number of Employees Who Have
Completed First-Aid Training

in total
Number of Female
Employees

21,7705,519(14.4% of total employees)

The ideal security company, as envisioned by our founder
ALSOK’s Four Principles

Sincerity, Accuracy, Strength, and Speed
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

Speed

Accuracy
The Rod Symbolizes Accuracy
・Professional security services must be accurate,
and must never be muddled
20

Company emblem

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

Organizational
Capabilities



ALSOK’sStrengths

For Ensuring Safety and Security
Having a top-class network in the industry provides a sense of security to society and customers. In the event of an
emergency, we have the agility to rush to the site immediately.
We will also contribute to solving various issues faced by our customers, such as work efficiency improvement, cost
reduction, and the desire to concentrate on their core business (outsourcing of various tasks), by utilizing our expertise in
the security business in which services are available 24 hours a day, 365 days a year.

Depots LocatedNationwide
Time to Arriveon the Scene

Approx.

16 minutes

ALSOK’sStrengths

on average

3,000

Number of
Employees

Number of Social Welfare Vehicles Donatedthrough the ALSOK ARIGATO UNDO Foundation

38,192

Number ofCompany Vehicles*

134

Overseas Operations (witha focus on Southeast Asia)

Cumulative Total

9,423* Excluding bicycles

・
6 Countries
Regions

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. In addition to having a strong trackrecord providing security for large-scale events, we also have a top-class track record in the industry for our monitoring
service for the elderly (emergency reporting services). In addition, to be a company trusted by both local communities andsociety at large, ALSOK actively engages in sustainability and ESG activities.

Electronic Security
Services Contracts

Approx. 1,000,000* Approx. 1,250,000 housing units covered when including contracts with housing complexes

Number of municipalities where emergency
reporting service is provided

Approx. 500(1,747 municipalities nationwide)

Cumulative total of AED
devices soldCash Deposit and Dispenser
Machine On-Line System

Annual Amount of Cash
HandledNumber of ALSOK ANSHIN KYOSHITSU
Classes Held

Approx. 227,000 units
Approx. ¥485 trillion

Approx. 27,900 units

Cumulative Total 54,439

External
・Next-generation certification mark (Kurumin) ・Eruboshi ・FTSE4Good
Evaluations ・FTSE Blossom Japan ・MSCI Japan ESG Select Leaders Index
ALSOK REPORT 2022

21

Overview and Vision

Sustainability and ESG

Financial Information

New Products and Services from ALSOK

ALSOK is constantly researching and developing state-of-the-art security technologies to provide a new formof safety by incorporating the latest technologies into the know-how of security companies in order to provide
customers with a safe and secure lives.

HOME ALSOK Outdoor Wireless IP Camera
On June 1st, 2022, ALSOK started offering the Home ALSOK Outdoor Wireless IP Camera IP-C730, an IP camera that can be easily
installed outdoors or indoors and can check real-time (live) images through a smartphone app.
● Unlike conventional cameras, the camera

can be used without the need for complex
installation.
By the battery operation and Wi-Fi
communication, it contributes greatly tosafety and security in various life situations
regardless of installation location.
● Live video from the camera can be checkedusing a smartphone at any time.
● When the IP camera detects motion, it

records video and sends a smartphone
notification. This provides peace of mind
when not at the location.

We offer an optional service where
customers can request ALSOK security
to rush to the scene in the event of an
emergency(with ALSOK sticker)

MH-A and MO-A2 models, part of ALSOK’s Medium-sized Cash Deposit andDispenser Machine Online System
On June 30th, 2022, ALSOK started providing MH-A and MO-A2 models to upgrade its Medium-sized Cash Deposit and Dispenser
Machine Online System that comprehensively manages store sales and cash. These models have newly added functions, such as“petty cash withdrawal” and “petty cash transfer” functions that have been requested by customers. The “petty cash withdrawal”
function is a function that allows you to withdraw petty
cash from the cash deposit machine, that waspreviously managed using a store safe. In addition,
the “petty cash transfer” function, which transfers a
portion of the sales amount for petty cash
withdrawals, eliminates the need to supplement cash
separately when there is a shortage of petty cash.
Main Functions● Features multiple-unit linkage functionality● Selectable combination of cash storage

compartments● Features coin roll vault● External system integration● Operation screen also available in English

22

MH-A model

MO-A2 modelLatest Topics
We have upgraded the automated patrolling security robot at the Tokyo Chamber of Commerce and Industry (TCCI)(Chiyoda-ku, Tokyo; Akio Mimura, Chairman) to the latest model, REBORG®-Z. With this upgrade, the security level andservice level have been improved, and the model has been changed to feature an original
wrapping featuring to Tokyo Chamber of Commerce and Industry and Eiichi Shibusawa, the first
Chairman of the Tokyo Chamber of Commerce and Industry.
Since the completion of the new Tokyo Chamber of Commerce and Industry Building(Marunouchi Nijubashi Building) in November 2018, ALSOK’s security robot has been patrolling thefirst floor entrance and responding to visitors with on-board information content. In addition toconventional functions, the newly introduced REBORG®-Z can move to the floor where the office islocated by interlocking with the elevator, and as part of the work style reform, it can provide voice
guidance to encourage employees to return home. The information content has also been
updated to reflect the uniqueness of the Tokyo Chamber of Commerce and Industry.
REBORG®-Z patrolling the
REBORG®-Z has been installed in various places such as shopping malls, complex facilities, andentrance at the first floor of the
airports. Going forward, we will continue to provide high-quality security services through theTokyo Chamber of Commerceand Industry building
cooperation of security guards and robots, and contribute to increasing the added value of facilities.

Changes in Robot Development
In 1982, we began research and development of autonomous security robots toimprove the efficiency of labor-intensive stationed security services. In 2002, webegan selling the Guard ROBO C4 with security + guidance functions, followed bycontinued improvements in driving and monitoring functions, and in 2019 wereleased our latest model, the REBORG®-Z. Currently, 27 security robots are in
operation throughout Japan.
● Started robot research to improve the quality of security and reduce

manpower against the backdrop of an aging society with a declining birthrate.
● Commercial launch positions robots as “technological image leaders” in the

2002

Guard ROBO C4
Security +guidance functions

2005

D1
Basic outdoor
patrol research

security market.
● Pursuit of multifunctional robots with information functions, not only

functions for the security market.

2006

REBORG-Q®
For use along withreal security guards

REBORG®-Z
Functions

Description

Surveillance
Camera Function

Video is always recorded by the robot’s built-in front and rear cameras.

2009

Surveillance
Function

Sensors built into the robot detect intruders in the alert area.
When an intruder is detected, the information can be checkedon a dedicated PC.

Responds toguidance requests

Mobility
Function

It can automatically run along set routes and automaticallyrecharge the battery at the recharging device. This contributes tothe automation, sophistication, and labor saving of security patrols.

2015

Drip-proof anddust-proof

It is possible for the robot to patrol around the perimeter offacilities since it features a drip-proof and dust-proof design.

RemoteMonitoring
Function

Surveillance camera images and abnormalities during area alerts
are confirmed remotely. Video images during automated patrols
can be viewed on a dedicated PC for timely confirmation of local
conditions.

LCD display
function

Displays and plays provided video content. Specified data suchas facility information display, store advertisements, and event
announcements can be displayed.

FacialRecognition
FunctionWith the built-in camera of the robot, it is possible to check witha person registered in the system. It is also effective forpreventing accidents and incidents by early detection of persons
with special attention, and for responding to customers by early
response to important customers.

An9-PR

Reborg-X
Strengthens
collaboration with people

2019

REBORG®-Z
Enhanced anomaly
detection

ALSOK REPORT 2022

23

Overview and Vision

Sustainability and ESG

Financial Information

Quality Improvement Initiatives

Due to the nature of ALSOK’s business, which is to protect the lives and property of customers (Security
Services, General Property Management and Fire Protection Services, Long-Term Care Services, etc.),
we consider it an important management issue to provide high-quality services that meet the intentionsof our customers based on relationships of trust.
We are promoting initiatives for continuous quality improvement, such as using customer feedback to
improve operations, creating a corporate culture of friendly competition among employees, andacquiring various management system certifications.

Improving the Quality of Service That We Provide to Our Customers● Improving Operations Based on

Customer Feedback

Feedback from customers, including opinions, requests,
complaints, and messages of appreciation, is shared with all
employees and serves as a catalyst for improving how we
conduct business on a daily basis.
In particular, since complaints are regarded as important hints
for business improvement, we analyze them by looking at how theyoccurred as well as surrounding factors and share our findings with
relevant departments to implement appropriate solutions.
Furthermore, based on the recognition that each complaintstems from “an act that damages the company’s reputation”
we have introduced an evaluation index which uses “damage
points” to measure the seriousness of a complaint. We areworking to prevent recurrence of complaints caused byviolations of internal regulations and rules provided in manuals
by disclosing the incidence rankings and evaluation results andthoroughly providing corrective guidance.
Number of Customer Feedback(26 less than the previous year)
Complaints
Messages ofAppreciation● Quality Control Activities
Quality Control (QC) activities are carried out at work sites
throughout Japan to solve familiar problems in the workplacewith the aim of improving productivity and raising awareness ofparticipation by employees through voluntary activities.
Each site organizes one or more quality control circle
meetings each year, and the results of each circle’s activities
are presented in regional qualifiers. In addition, the Head Officepresentations are held by the selected offices nationwide, andoutstanding initiatives are disclosed on the company intranet topromote the horizontal development of good practices.

3,049

787 (YoY decrease of 26)
2,262 (YoY increase of 1,135)

Outstanding Circle Award● Improving Customer Satisfaction and

Employee Commendation

Every six months, ALSOK awards employees who have contributed
significantly to improving customer satisfaction. Three years havepassed since the awards system was introduced, and theincreased awareness of customer satisfaction among employees
has also been reflected in the increase in the number of winners.
To further improve awareness, we are expanding the numberof award categories and revising the criteria for proper evaluation.
Number of Awards Given for Providing Quality
Customer Service
Second half of the FY
・FY2020 First half of the FY

48・FY2021 First half of the FY 8 Second half of the FY 10・FY2022 First half of the FY 12 Second half of the FY 8
24

Quality control presentation● Business Improvement Proposal System
We have established the Business Improvement Proposal
System in order to encourage employees to share constructive
opinions on business improvement, which can lead to internal
revitalization and productivity improvement.
Improvements are constantly being made, includingchanging the format of documents used in business andchanging to more efficient methods that are less prone tooperational errors, by adopting ideas suggested by employees.

Improving Work Skills● In-House Competitions
The ALSOK Group Corporate Quality Improvement Tournament is held annually to
improve the quality of services throughout the Group through competitions thatincorporate practical aspects such as alarm response, maintenance of security
equipment, telephone response, and first aid.
In FY2022, which marked the 12th year of the event, 158 employees participatedin the tournament after taking various measures against Covid-19, and competedwith each other based on the skills and response capabilities honed in their
day-to-day work.

First aid training● Initiatives for Safe Driving
In 2009, we introduced the “Safe Driver Certification System” for employees who
operate commercial vehicles and motorcycles (two- and three-wheeled vehicles) toacquire basic vehicle knowledge and driving skills. Through practical training, we areworking to reduce traffic accidents by having those employees learn to operatevehicles safely.
In addition, in order to further prevent accidents, installation of vehicle safety
equipment such as collision damage reduction brakes and rear-view sensors has
been mandatory for new car purchases since 2021. When a traffic accident occurs,
the causes are analyzed by the department in charge and the results are provided
to all concerned parties as appropriate.
We are also developing various accident reduction measures, such as expanding
our “Driver Award Program for No Accidents and No Violations,” which recognizes
employees who perform their duties without traffic accidents or violations according
to the distance they have driven to provide incentives for safe driving.

Employees presented with Accident Free Award

Safe Driver Certification test

Improving Employee Satisfaction● Improving Employee Satisfaction
We recognize that customer satisfaction and employee satisfaction are important inproviding high-quality services, and we believe that the foundation of employee
satisfaction lies in a culture of praise for employees in their day-to-day work.
That’s why ALSOK has introduced the Good Service Thanks Card (GST) torecognize employees’ strengths and reward them with two types of cards: cards withwords of appreciation from customers and cards withwords of appreciation from coworkers.
In addition, by selecting the best GST Cards
awarded and posting them at each business site, wefoster a culture of mutual recognition and increase
opportunities for praise.
GST Cards(Good Service Thanks Card)

Number of GST Cards Distributed

89,784 (Up 7,636 YoY)

1. With messages of appreciationfrom customers

16,438(Non-consolidated: 3,950; Group: 12,488)

2. With messages of appreciationfrom coworkers

73,346(Non-consolidated: 40,899; Group: 32,447)● Employee Awards
In order to improve service quality and motivate employees, we have established a variety of in-house award programs, ranging fromindividual employee awards to individual office awards.
Examples of Awards
・ALSOK100 (outstanding employee award)
・Driver Award for No Accidents and
No Violations
・Outstanding Salesperson Award・Outstanding Team Member Award
・Golden Eagle Cup, Ayato Cup,and Murai Cup

ALSOK100(outstanding
employee award)
award ceremony
ALSOK100 (outstanding employee award) recipients

ALSOK REPORT 2022

25

Overview and Vision

Sustainability and ESG

Financial Information

Solving Social Issues through Business Activities

By accurately grasping social trends and utilizing know-how cultivated in the security industry, we
provide multifaceted services that contribute to solving social and customer issues.

Development of Safe and Secure Communities● Evacuation Shelter Solutions
Japan faces the risk of various natural disasters such as earthquakes and floods caused by typhoons. Local governments throughout
Japan have established evacuation shelters to protect and accept affected people. However, an important issue is how to prevent
infectious diseases, including Covid-19, from spreading in evacuation centers, where three conditions that facilitate the transmissionof infectious diseases (closed spaces, crowds, and close contact) are likely to exist.
ALSOK provides one-stop evacuation center solutions that provide everything from evacuation support to operational support
such as checking the body temperatures of evacuees and using the system to manage action areas.
By using HOME ALSOK Mimamori Support, ALSOK’s watchdog service for the elderly to provide them with evacuation support,
municipalities can give evacuation instructions to users, confirm evacuation routes, ascertain the location of missing persons, andascertain and tally the status of completed evacuations.
Occurrence of Disaster“Not enough staff
are able to come tothe office due tothe disaster.”“I want ouremployees to focus
on their normal
duties.”Example ofAssistanceUser Reception andTemperature Checks

Cleaning andDisinfection Inside the
Evacuation Shelter

Acceptance anddistribution/provisionof packaged meals
and daily necessities

Replacement ofbulletin board items/
Removal of oldbulletin board items

Patrols inside andoutside theevacuation shelter

Temperatures ofAnnouncements at
evacuees are checked at Evacuation Shelters
regular intervals inside Announcements about infection
prevention, food poisoning, etc.
evacuation shelters

Garbage Disposal“Due to the
Covid-19 pandemic,
the required number ofvolunteers cannot gather
together.”● Provision of a Town Security System that Utilizes AI
For Suita Sustainable Smart Town (Suita SST) in Osaka Prefecture, Panasonic Connect Co., Ltd.’s security
systems and ALSOK’s security services are used in combination to realize a highly accurate and efficient town
security system that can monitor events as well as automatically and continuously identify/analyze issues.
In order to realize “a town where everyone can live in peace of mind forever andanyone can visit with peace of mind at any time,” an ALSOK security station has been set
up in Suita SST. We are improving the level of our collaborative abilities and services suchas incident detection using high-performance town security cameras equipped with AI
and 4K technology, rushing security guards to respond to incidents in consideration of
the circumstances, and correspondence with police, emergency services, etc.
ALSOK has been selected as a security partner for Fujisawa SST (Fujisawa City,
Kanagawa Prefecture), Tsunashima SST (Yokohama City, Kanagawa Prefecture), andSuita SST, all SSTs that Panasonic is involved with, and is the only security company to
Suita Sustainable Smart Town
participate in all the SSTs.

● A New Approach to Providing Disaster-prevention Stockpiles that Contributes to Reducing Food Loss
It is common for companies to stock up for disasters such as earthquakes, but stockpiled beverages and food that are notconsumed and have expired may be discarded, resulting in food loss and possible disposal costs.
As a solution to this kind of social issue, ALSOK has launched the Social Contribution Based Disaster Stock Utilization Service.
The service is offered at a fixed-price with a contract term of 4 and a half years. Delivered disaster stockpiles are replaced with thenew one six months before their expiration dates, and those that are about to expire are donated to various welfare facilities andorganizations nationwide through food banks. This service eliminates the hassle and cost of managing stockpile expiration dates,
replacing stockpiles, and disposing of expired stockpiles, and also contributes to solving social issues.
26

Contributing to Safety and Security by Entering into Agreements with Local Government Authorities throughout JapanALSOK is developing activities that contribute to the safety and security of local communities nationwide by entering agreements withlocal governments and the police making use of its network of security bases located at approximately 3,000 locations throughout
Japan as well as its mobility.
Agreements cover crime prevention, monitoring of the elderly and children, disaster prevention, and pandemic prevention. In
addition to contributing to the safety of society, in recent years we have been involved in a wide range of activities, including activities
aimed at achieving the SDGs and activities related to the development of young people who will lead the next generation.
ALSOK will further enhance its contribution to society by taking advantage of the characteristics of its operations and solving theissues faced by each region.
Akita Prefecture

Hokkaido

・Agreement regarding provision of service for monitoring senior citizens (Akita City)

・Community-based monitoring agreement(Monbetsu City), etc.

Gunma Prefecture

Saitama Prefecture

・Agreement regarding facility use in the event of a natural disaster (Maebashi City)・Collaboration agreement regarding
monitoring of children, etc. (Toda City) (P27)
・Agreement regarding local security (Saitama
Prefectural Police), etc.

Shiga Prefecture・Comprehensive collaboration agreement regarding local safety and security,environmental conservation, promotion of sports, etc. (Shiga Prefecture)
Nara Prefecture

Tokyo・Telephone Consultation Desk “Moshi Moshi Safety and Security
Dial” Cooperation Agreement (Shimoichicho)
・Agreement regarding security and guidance in the event of adisaster (Kobe City)
・General agreement (Takarazuka City), etc.

・Agreement regarding information gatheringby unmanned aerial vehicles and security
work at evacuation shelters (Edogawa
Ward)・Agreement regarding coordination andcooperation(National Institution For Youth
Education), etc.

Hiroshima Prefecture

Kanagawa Prefecture

Hyogo Prefecture

・Kawasaki SDGs partner agreement(Kawasaki City)・Agreement regarding information
gathering by unmanned aerial
vehicles (Sagamihara City), etc.
Aichi Prefecture

・Agreement regarding outsourcing work to prevent an
epidemic in the event of an outbreak of an infectious
livestock disease (Hiroshima Prefecture)
Oita Prefecture
・Prefectural Police cooperative agreement
to ensure local safety and security (Oita
Prefectural Police)

・SDGs promotion partner agreement (Toyohashi City)
・Comprehensive collaboration agreement (Nagoya City), etc.

Ehime Prefecture

Wakayama Prefecture・Comprehensive prefectural police agreement(Ehime Prefecture)・Agreement regarding information gathering by
unmanned aerial vehicles (Toon City)
Kagawa Prefecture・Comprehensive collaboration agreement for raisingawareness of disaster prevention and crime prevention(Wakayama Prefecture)・Comprehensive collaboration agreement (Kagawa Prefecture)・Agreement on community-based monitoring (Kagawa Prefectural Police)

・Comprehensive collaboration agreement (Tokushima Prefecture)・Agreement regarding monitoring of senior citizens (Anan City)

Types of Agreements
Concluded

Tokushima Prefecture

Agreement on monitoring and crime prevention

Agreement regarding epidemic prevention

Agreement regarding disaster prevention

Comprehensive agreements/Multiple types of agreements(as of June 2022)

Note: The agreements shown on the map are examples of some of the agreements we have concluded.

● ALSOK Enters a Collaboration agreement regarding monitoring of children, etc.

with Toda City, Saitama Prefecture (agreement concluded on June 21, 2021)

In Toda City, monitoring security cameras have been installed at 300 locations around thecity, mainly along commuting routes, and a notification service has also been establishedto inform families and guardians where their children are located.
We support the operation of this service from the aspect of installation andmaintenance of monitoring security cameras and have included an agreement with thecity. In addition to monitoring children, such as holding crime prevention classes, we will
cooperate with the city in various aspects such as community safety and security, support
for the elderly and people with disabilities, and disaster countermeasures. We contribute tostrengthening the local monitoring environment.

Collaboration agreement signing ceremony● ALSOK Enters an Agreement Regarding Security and Guidance in the Event of a Disasterwith Kobe City, Hyogo Prefecture (agreement concluded on November 17, 2021)

In the event of a disaster, we provide guidance for victims and those who are unable to return home, security at evacuation centers, developmentof bases for collecting and delivering supplies in the event of a disaster, and advice on the deployment of security guards and guidance.
ALSOK was also contracted to develop a manual (FY2022) for guiding people who have difficulty returning home in the areasurrounding Sannomiya Station, the terminal station.
ALSOK REPORT 2022

27

Overview and Vision

Sustainability and ESG

Financial Information

Solving Social Issues through Business Activities

Supporting Environmental Issues● Providing Products Aimed at Realizing● Environmentally-friendly Fire Extinguishing Agents

In order to achieve the government’s goal of becoming carbon
neutral by 2050, ALSOK is working to reduce energy
consumption and CO2 emissions by upgrading air
conditioning, LED lighting, and other equipment withenergy-efficient devices.
In addition, to accommodate electric vehicles and plug-in
hybrid vehicles, ALSOK has started installing EV charging
facilities and also contributes to the enhancement of the EV
charging infrastructure.

In Indonesia, forest fires have become a social problem, spreading
underground when wildfires in forests ignite underground peat
layers. While such fires are characterized by the fact that they are
not easily extinguished once they start, from the standpoint offorest conservation, fire extinguishing agents that have a negative
impact on the environment should not be used.
On the other hand, PT. ALSOK BASS Indonesia Security
Services proposed an environmentally friendly fire extinguishingfluid to a Japanese company that manages peatland forests.
Local demonstration tests confirmed the penetration of thefluid into the ground, its effectiveness in extinguishing fires, andits high biodegradability and low environmental impact, and it
is now being deployed at fire sites.

EV charging equipment handled by ALSOK

Environmentally-friendly fire extinguishing agent

Carbon Neutrality

are Deployed at Forest Fire Sites in Indonesia

Contributing to Infectious Disease Control Measures● Post-Covid Security Utilizing Robots
Three REBORG®-Z security robots have been placed at a newresidential treatment facility for Covid-free patients establishedby the Tokyo Metropolitan Government. The REBORG®-Z
robots were deployed to reduce the workload of support staff
and reduce the risk of infection since patients do not have tomeet face to face or have physical contact with support staff
when robots are used. In addition, an antimicrobial coating isapplied to the REBORG®-Z itself and sterilization was carriedout as appropriate after introduction, contributing to theprevention of infectious diseases.
Basic Functions● Helping in the fight against Covid-19 bycollecting and transporting infectious waste

In response to the Covid-19 pandemic, the occupancy rate of
hospitals has increased and the establishment ofaccommodation facilities as well as vaccination centers
nationwide has led to an increase in the volume of infectious
waste, such as used needles, vaccine ampoules, and clothingwhich was exposed to blood and body fluids.
Sohgo Kanzai Co., Ltd. collects such waste using sealedcontainers and safely transports waste to the disposal site. We
are working to strengthen our response system to meetincreasing demand, such as adding warehouses for storing
waste, expanding collection and transport areas as well as thetypes of items that can be collected.

1. Facilitates communication
between the administrative
section and residents
2. Camera-based monitoring
3. Automatic patrol based on
pre-defined route
4. Residents can use the microphone function to be provided
with information in the language
used (multiple languages
including Japanese, English,
and Chinese are available)
REBORG®-Z security robot

28

Infectious waste transport vehicles

Diverse Services Rooted in Local Communities
The ALSOK Group, which operates nationwide and around the world, provides a variety of distinctive services focusing on security,
which is its main business, and contributes to solving regional issues through closeness with each community.
ALSOK YAMAGATAALSOK SHIZUOKA

Yamanashi Branch

Vehicle Operation Management

A crowd control guard near the summit of Mt. Fuji

ALSOK Grave Maintenance Service

We manage the operation of four vehicles
owned by Oguni Town, Yamagata
Prefecture for transporting dialysis
patients. We manage vehicle schedules
for transporting patients to their homes
within the town and to hospitals inneighboring municipalities, inspect andclean the vehicles, and drive them.

During the busy season, particularly at the time
the Mt. Fuji opens for climbing each year,
ALSOK security personnel are deployed along
the Fujinomiya and Gotemba trails at the summitof Mt. Fuji, and at intermediate points between
to warn climbers, guide them to sunrise viewing
points, and provide first aid to those who are
injured or have breathing difficulties.

In Yamanashi Prefecture, we provide service
where we clean grave sites and conduct
memorial services on behalf of those who live
far away due to job transfer or other reasons or
those who are elderly and have difficulty
managing graves that they are responsible for.
Grave photos and condition report areprovided via email or postal mail.

ALSOK ThaiALSOK CHIBAALSOK KEIJI

Illegal Drug Testing Services

Wild Game Facility

Snow Removal

In Thailand, where approximately 5% of
the population has experienced using
methamphetamines and other drugs, there
are many incidents of employees stealing
company products and equipment in orderto purchase drugs. We provide drug
testing services to our Japanese business
partners struggling with this problem.

The Wild Game Facility was established tosolve the problem of the disposal of harmful
birds and beasts that are captured which
are causing issues in Chiba Prefecture. The
company takes in captured birds andbeasts and then dismembers, processes,
and sells them at its own facility.

During the winter season, the plant where
we have a permanent security guard
stationed in Ayabe City, Kyoto Prefecture,
security staff checks the weather forecast
every day and waits at home when snowfall
is predicted, then dispatches a wheel
loader on an emergency basis to remove
snow before the employees arrive for work.

Kita-Kanto Sohgo Security Services

ALSOK CAREALSOK TOKUSHIMAManagement and Operation of Facilities (PFI/PPP)

Licensed Nursery Schools

Shuttle Bus Service

We are responsible for the management andoperation of public facilities, including Tochigi
Green Stadium, the home stadium of the
Tochigi J-League Soccer Club, and the Tochigi
Prefecture Disaster Prevention Center, where
people can learn about disaster prevention
through simulated experiences.

We operate two “Kodomo no Ie Nursery”(Shiki City, Saitama Prefecture) and two“Tanpopo Nursery” (Funabashi City, Chiba
Prefecture) as licensed nursery schools forchildren from zero years old to preschoolage, providing places where children cangrow up healthy and sound.

Two to five shuttle buses provide visitorswith regular service between the Otsuka
Museum of Art in Naruto City, Tokushima
Prefecture where ALSOK security arelocated and 3 to 4 private parking lots
located approximately 1 km away.

ALSOK REPORT 2022

29

Overview and Vision

Sustainability and ESG

Financial Information

Sustainability and CSR Management

Framework for Sustainability and CSR Initiatives
ALSOK considers the five themes of “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 Through Active Communication,” and “Consideration for the Global Environment” to be material issues and is working
to resolve social issues and improving corporate value in a sustainable manner. As a company that plays a role in social infrastructure,
we strive to provide solutions related to these five themes.

Five Material Issues

Providing Trustworthy

The primary purpose of ALSOK’s business activities is to provide
products and services of the first rank to our customers. As acompany that develops businesses that protect the lives and assetsof our customers, we believe that providing high-quality products andservices that meet the trust of our customers is an importantmanagement issue, and we are constantly working to improve quality.

Providing Products andServices That Help
Resolve Social Issues

By accurately grasping social trends and utilizing know-how
cultivated in the security industry, we provide multifaceted
services that contribute to solving social and customer issues
recognizing that ALSOK is a company that plays a role in social
infrastructure.

Cultivating Human

People are the key source of our corporate activities. To ensure thateach and every employee, who form the foundation for oursustainable corporate development, can maximize their abilities andwork vigorously, we are building an environment that brings out
their best performance through the promotion of work stylereforms, diversity initiatives, and enhancement of training programs.

1 Security Services

2

3 Resources and Buildinga Comfortable Workplace
Environment

Contributing to Local

4 Communities throughActive Communication

Consideration for the

5 Global Environment

30

To give form to “arigato no kokoro” (a feeling of gratefulness andgratitude)—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 and contributes to the realization of a future in which
everyone can live safely and securely.

Based on the recognition that global environmental issues arecommon to all humankind, we will take measures against climatechange, contribute to building a recycling-oriented society, andconserve biodiversity from the perspective of reducing
environmental impacts and preventing environmental pollution.

For detailed data on ALSOK’s sustainability eﬀorts,
please visit our website.
https://www.alsok.co.jp/company/society/esg/

Basic Sustainability Policy
Recognizing that addressing sustainability issues is a fundamental management issue, we have established the ALSOK Group Basic
Sustainability Policy to meet the diverse safety and security needs of customers as well as society, and will promote initiatives aimed
at sustainable growth.

(1) Providing products and services that contributeto the solutions of social issues(6) Human resource development and providing
better workplaces(2) Ethics and fair trade(7) Conservation of the global environment(3) Corporate governance(8) Contributing to local communities(4) Human rights and labor(9) Thorough crisis management(5) Providing trustworthy, resilient integrated safety
and security services(10) The role of our management teamhttps://www.alsok.co.jp/company/society/special/Social Issues Dialogue and SDGs
Important Social Issues

E
Environmental

S
SocialG
Governance

Climate change
countermeasures
Safeguarding
Biodiversity

VisionHelping to resolve
climate change-related
problems, andcontributing towardsafeguarding the
global environment

Main Initiatives
Reducing energy usage andCO2 emissions
Responding to bird andanimal pests

Effective utilization of
resources

Promoting the “3Rs”(Reduce, Reuse, Recycle)

Supply chain management

Supply chain management

Response to crime,
terrorism, etc.
Response to aging social
infrastructure
Response to shrinking labor
force, and shortage of medical
professionals and care workers

Addressing society’s
problems through therealization of safety
and security bymaking effective useof the know-how
cultivated in the
security sector

Consideration for the
Global Environment

P.33・38-39

Integrating AI and the IoT withsecurity
Monitoring services
MIMAMORI service and
ALSOK long-term care

Providing Products andServices That Help
Resolve Social Issues

Cultivating diverse talent
Respect for diversity andhuman rights
Work–life balance

Improving employee education/
training environments
Diversity promotion
Strengthening healthmanagement initiatives

Human Resources
Development andEmpowerment Initiatives

The need to control crime
The need to create
educational opportunities
The need to provide
support for recovery

Holding of various types of crime
prevention seminars
Art, culture, and sports promotion
to support the next generation
Disaster relief and volunteering activities

Community Contribution
Activities

Improving customer
satisfaction
Enhancing service quality
Risk preparedness

Enhancing customer satisfactionand employee satisfaction
Improving service quality andacquisition of management
system certifications
Improving the BCP framework

Quality Improvement
Initiatives

Improving the corporate
governance framework

Corporate GovernanceCorruption prevention

Becoming a businessgroup that is trusted
by its stakeholders

Compliance

Compliance with Japan’s
Corporate Governance CodeStrengthening
transparency

Implementing effectivenessassessment

Related SDGs

P.26-29

P.34-36

P.37

P.24-25・32-33

P.40-43

ALSOK REPORT 2022

31

Overview and Vision

Sustainability and ESG

Financial Information

Sustainability and CSR Management

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, ISO26000, theinternational 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.

Main Stakeholders
Customers
Corporate: 548,000 contracts
Individuals: 460,000 contracts

Employees
Number of employees: 38,192(Non-consolidated: 12,002; Group: 26,190)

Shareholders and Other Investors
Financial institutions/Corporations: 57.5%
Foreign Investors: 23.8%
Individuals and other: 18.5%

Business Partners
Number of business partners:
Approx. 860 companies

Local Communities and the
Global Society

Japan (nationwide)
Six foreign countries/regions

Value Provided by ALSOKSpecific Examples of Initiatives

Provide safety and security through our high-quality
products and services• Improvement of customer satisfaction through CS promotion• Quality and safety promotion initiatives• Provision of safety and security services• Dissemination of information through websites, SNS, etc.

Based on the belief that people are an important source ofcorporate activities, we provide an environment in which
each and every employee can fully demonstrate theirabilities and work energetically, and develop their abilities• Enhancement of the education system• Enhancement of health and welfare benefit plans• Promotion of health management• Establishment of internal reporting system, etc.

Increase in stock price and provision of shareholder
returns by increasing corporate value throughsustainable growth as as a resilient “integrated safety
and security solutions provider”• General Shareholders’ Meetings, results briefings• Issuance of integrated reports, securities reports, etc.
• Disclosure of business and other risks• Investor meetings, etc.

To solve various social issues, ALSOK and the entire
supply chain will work together to achievesustainable growth.

• Fair business practices• CSR procurement• Supply chain management• Information security management system operation, etc.

Contribute to the creation of a safe and securesociety by creating new solutions centered on safety
and security in response to diversifying risks• Holding of crime prevention classes and courses• Art, culture, and sports promotion• Disaster recovery and volunteering support• Environmental activities, protection of biodiversity, etc.

Note: Shareholder information does not include treasury stock data.

Risk Preparedness (BCP)● BCP
In recent years, earthquakes have occurred frequently in various parts of Japan. It is predicted thatan earthquake directly beneath the Tokyo metropolitan area will occur with a 70% probability within
the next 30 years. To be prepared, we conducted comprehensive disaster response drills in
anticipation of an earthquake directly below the Tokyo metropolitan area.
The training includes a series of drills - establishment of a disaster response headquarters after an earthquake
occurs, collection of information on the damage by each person in charge, and confirmation and reporting of thesafety of employees. The drills are designed to strengthen cooperation with the affected offices and groupcompanies, foster disaster awareness, and improve the ALSOK Group’s overall disaster response capabilities.
In October 2021, we held VR-based disaster prevention training using a simulator. The simulated experience
which integrates shaking movements and video will be utilized for future disaster countermeasures.

● Infectious Disease Control Measures
As a provider of services related to the safety and security of society, the ALSOK Group must continue toprovide appropriate services.
For this reason, we have established a business continuity system based on national and local government
policies related to measures to prevent the spread of Covid-19. In addition to the collection and disseminationof appropriate information through the Countermeasures Office established at the Head Office, and thoroughimplementation of basic infection control measures such as temperature checks, wearing masks, and handsanitation, we are also striving to provide various stable services by adding a negative result from a PCR test
provided by ALSOK Group company MBIC Life as a condition for returning to work, encouraging vaccinationsuch as workplace vaccination, and making in-house meetings online.
In addition, in order to prevent the spread of infection, especially at nursing care facilities, we have implemented
thorough infection control measures including cleaning inside facilities while enforcing entry restrictions.
32

Comprehensive disaster response drill

VR-based disaster prevention
training using a simulator

Company-based vaccinations

Overview and Vision

Sustainability and ESG

Financial Information

Supply Chain Management

The ALSOK Group responds to changing times and the demands of society by working to help solve
various issues such as human rights, labor, corruption, and global environmental conservation. However,
we believe that this initiative will not be completed only by the efforts of the ALSOK Group, but will be
realized with the understanding and cooperation of all stakeholders, including our business partners.
Based on this philosophy, the ALSOK Group will work on procurement and equipment design anddevelopment while strengthening cooperation with our business partners.
● CSR and Sustainability Procurement
In 2022, we established the CSR and Sustainability Procurement Guidelines toaddress global environmental conservation, human rights, labor, corruption,and other issues throughout the supply chain, including our business partners.
In addition to actively promoting global environmental conservation througheffective use of resources and reduction of waste generation in cooperation
with business partners, we are also promoting initiatives that respect humanrights in the entire supply chain based on international norms
regarding human rights.
Scan the QR code to see our CSR and Sustainability Procurement Guidelines.

Notice with policy information and survey sheet which are
distributed to suppliers● Environmentally-Friendly Design
We have formulated the Guidelines for Environmentally-Friendly Design asinternal guidelines with the aim of contributing to environmental conservation in
the development of security equipment and other outsourced products. Basedon these guidelines, we will cooperate with our suppliers to consider
environmentally-friendly designs when designing and developing products, limit
the use of hazardous chemical substances in delivered products, extend theservice life of products, and recycle packaging materials to further contributeto environmental conservation.

Security equipment provided by ALSOK● Establishment of ALSOK Business Partner Hotline
From December 2021, the “ALSOK Business Partner Hotline”, the contact point designed for business partners to report to us, hasbeen established, which aims to ensure self-cleaning, social trust, maintenance and improvement of corporate value, and sustainable
development with business partners.
We have established a system that enables business partners to report unlawful acts, misconduct, unethical acts, or acts that may
be considered to be unlawful, involve misconduct, or unethical caused by organizations or individuals within the ALSOK Group
without the reporting party being treated disadvantageously.

Acquisition of Various Management System Certifications
Recognizing that business interruptions have an impact on many stakeholders, ALSOK is strengthening its efforts by obtaining
ISO22301 in preparation for emergencies such as large-scale disasters and accidents.
We have also obtained certification for our quality management system (ISO9001), information security management system(ISO27001), and environmental management system (ISO14001) in order to improve business operations through the PDCA cycle.
Currently among our ALSOK Group companies, 57 companies have acquired ISO9001 certification, 20 companies have acquired
ISO27001 certification, and 40 companies have acquired ISO14001 certification.

ALSOK REPORT 2022

33

Overview and Vision

Sustainability and ESG

Financial Information

Increasing the Value of Our Human Resources

We are working to strengthen human resource development, such as enhancing training systems, promoting theacquisition of qualifications, and proactively supporting careers, so that human resources, which form thefoundation of sustainable corporate development, can acquire skills and expertise in order to increase their value.

Enhancement of Training and Drills● Initial Training for New Employees
Based on the fundamental concept that human resources are the most important source of corporate activities, the ALSOK Group conducts avariety of training programs to realize what is stated in our Management Philosophy - “to help maintain safety throughout society, an indispensable
element of our lives, as well as to make constant improvements.” We have established a training system to develop the abilities of employees so thatthey can be put into practice in all business operations by understanding and permeating the basic spirit of the “Management Philosophy,”“Management Guidelines,” and “Code of Conduct.” We strive to develop human resources who can accurately read the changes in the environment
surrounding ALSOK and the needs of society, and implement various corporate measures.
In particular, new employees, who will be responsible for the future of ALSOK, will
acquire new security certifications and learn common knowledge, skills, and ethics
necessary for their work. In addition to 36 hours and 50 minutes of initial training at thetraining center, on the job training in each department that the employee is assigned tois implemented based on a systematic plan for each job type.
Initial training● Expanding Job Training Opportunities
The scope of the e-learning system introduced in FY2019 was expanded in
FY2022. By switching from group training to e-learning training, which focuseson the acquisition of specialized knowledge, it has become possible to continue
providing educational
opportunities even in● Average Number of Training
Hours
Hours Per Person
situations where grouptraining cannot be● Number of Training Classes Planned
conducted due to theand Offered by the Head Office
Covid-19 pandemic.

12.3
385

e-learning system utilization

Deepening Our Expertise● Promoting of Acquisition of Qualifications
ALSOK aims to increase the acquisition rate of official certifications, which arerequired for each type of business. We encourage employees to take on new
challenges by providing subsidies for certification acquisition costs.
Also, in order to motivate employees to acquire high-difficulty qualifications
and to secure excellent human resources, we have established a system toprovide qualifications to employees who possess the qualifications specified by
the company and engage in specific work.

● Open Recruitment System

Examples of qualifications eligible for allowance
37 types of qualifications including:・ Installation Technician
・ General Communications classification
・ Electrician
・ Network Specialist
・ Electrical Work Operation and Management
Engineer・ Telecommunication Work Operation andManagement Engineer
・ Fire Protection Engineer (Type 4)・ First-Class Radio Operator for General Services

The ALSOK Group is actively promoting personnel exchanges with members of central ministries and agencies, other companies, and within theGroup to promote the revitalization of the organization and the improvement of employee capabilities. In addition, we are striving to develop humanresources who can work on a global scale by internally recruiting personnel in the field of security measures who are in charge of security at
Japanese embassies and consulates. In addition to our core business of security services, we have adopted an open recruitment system in all
business areas, including the long-term care business, to discover and develop human resources who will become the core of our business.
Furthermore, in order to achieve sustainable development amid rapid changes in the social environment, such as population decline,
technological innovation, and globalization, recognizing that there is an urgent need to develop management personnel who have acquired
systematic and advanced knowledge and skills related to management, we have dispatched employees to professional graduate schools where
they can learn advanced management knowledge while continuing their work.
34

Overview and Vision

Sustainability and ESG

Financial Information

Building a Comfortable Workplace Environment

We are working to improve the work environment, such as promoting work style reform andresponding to diversity, so that each employee can work energetically and fully while feeling a sense ofjob satisfaction.

Work Style Reform and Work–Life Balance● Establishment of a System to Improve Work Styles
At ALSOK, we are working to enhance systems for creating a comfortable workplace in order to build an environment where workers
can maximize their abilities.

SystemDescription

・Platinum Holiday

Encourages all employees to take long vacations of nine consecutive days or more (started in 2018)

・Pearl Holiday

This system fosters an environment that encourages employees to take annual leave by asking
them in advance when they plan to take leave each quarter (started in 2021)

・Employee Satisfaction(ES) Meetings

With the aim of raising issues and drawing up opinions from employees, the company holds
Employee Satisfaction (ES) Meetings with employees (excluding managers) and personnel officers
every year at all business sites (started in 2008)

・Employee Questionnaire
System

Employees questionnaires are distributed for the purpose of ascertaining employees’ perceptionsof the workplace, morals, values, etc., and promoting measures based on these perceptions.
Distributed to all employees since 2020 (system started in 1999)

・ALSOK Support LineWe have established a support line in an effort to maintain the mental health of our employees andto create a safe work environment.
Family members of employees can also call the support line (started in 2007)● Percentage ofpaid leave taken

Employee Satisfaction
ﬁscal year ended
22 Times the
62.8% (Non-consolidated) ● (ES)Meetings
March 31, 2022)
Number of Matters
Number of Companies Thatand Group41
295 (ALSOK
Addressed
Used the Support Line
companies)
Companies● ALSOK SupportLine(Non-consolidated, for

Promoting the Empowerment of Women● Challenges and Goals in Promoting the Empowerment of WomenWith the aim of creating a workplace environment in which employees can fully exercise their individual abilities and play an activerole, ALSOK is working to promote the active participation of women in both career advancement and the creation of an environment
where diverse work styles can be realized.
We have set a goal to increase the proportion of women in management positions by 5% over a three-year period starting April 2021
compared to fiscal 2020. To realize this goal, we will implement various initiatives, such as holding meetings where female employees are given
the chance to talk with female managers, provide them with opportunities to learn directly from role models about their management roles.
Although ALSOK treats men and women equally in all job categories when hiring, the company has tended to avoid assigning women to the
Operations Department for security considerations, placing them in logistical support● Ratio of Employees Returning to Work
roles instead. We have now broken away from this approach and assign female
after Taking Childcare Leave
employees who wish to work in positions that have traditionally been for men.
In addition, we have established a system to(non-consolidated)promote the work-life balance of employees
regardless of gender and are studying various
%
Men
%
Women
work styles such as working from home so that
● Number of employees taking childcare
employees can balance work with childbirth,leave by gender (non-consolidated)childcare, and nursing care. We are working toincrease the average length of service of
Women
Men
employees by 5% over the three years startingin April 2021 compared to fiscal 2020.

100

94.1

13

35

ALSOK REPORT 2022

35

Overview and Vision

Sustainability and ESG

Financial Information

Building a Comfortable Workplace Environment

Diversity and Inclusion● Active Participation of Employees with Disabilities
In 2010, we established ALSOK Business Support Co., Ltd. as a special subsidiary
to promote the employment of people with disabilities as well as to support their
independence and social participation. We strive to create a workplace where eachand every employee, regardless of whether or not they have a disability, can workwith vigor and pride. ALSOK Business Support employees are involved in a wide
range of activities, including the production of business cards, product pamphlets,and other printed materials used by the ALSOK Group, custody of contracts andequipment, and maintenance of equipment and terminals used for sending out
materials and for ALSOK’s outsourcing operations.

Document printing by ALSOK Business Support● Active Participation by Seniors
In 2011, we established ALSOK Eagles Co., Ltd. to re-hire retired employees, providing a place where retired seniors can work
utilizing their wealth of experience.
These seniors are active in a wide range of fields, from the operation of a convenience store located in the ALSOK Head Office building to
the production and sale of original ALSOK goods and novelties, periodic inspection of alarm equipment, repair reception and reuse operations.

● Respect for Diversity
At our local subsidiaries in six Southeast Asian countries, we respect daily
religious practices (Muslim prayer sessions, etc.) and have secured in-houseprayer spaces and adjusted work shifts to allow time for prayer.
In addition, some Group companies hire employees in a manner that respects
individual identity. After hiring, we encourage the understanding of the employees
around them to create the work environment that the newly-hired employee
desires.

Japanese employees and local staff at ALSOK India praying
for the successful development of the company● Overseas Business Development and Training for Local Employees
At Group companies overseas, we are working to develop a training system toencourage the further success of locally-hired employees. As part of this effort,
we create common training materials that summarize our management
philosophy and history, and use them in initial training conducted after hiring.
In order to spread ALSOK’s basic spirit of “arigato no kokoro” (a feeling ofgratefulness and gratitude) and “bushi no seishin” (a samurai spirit) in different
cultures, these materials were optimized by translating them into the languagesof each country and adapting them to each local culture. Through these
activities, we are raising the sense of belonging of locally hired employees to the
ALSOK Group and deepening their understanding of the basic reasoning behind
why employees should follow our company manuals.

Promotion of Health Management
In addition to a welfare program that allows employees to use sports facilities
and hotels at preferential rates, we have an insurance system to support them inthe event that they are absent from work for an extended period of time. We
also support employees and their families to lead healthy and fulfilling lives by
providing counseling services for mental and physical health and holding health
events in cooperation with the health insurance association.
In recognition of these efforts, we were the only company in the security
industry to be recognized as a Certified Health and Productivity Management
Outstanding Organization (large enterprise category) for the sixth consecutive
year for its health and productivity management.
36

Employee training at ALSOK Thailand

Overview and Vision

Sustainability and ESG

Financial Information

Social Contribution Activities for Local Communities
Embodying “arigato no kokoro” (a feeling of gratefulness and gratitude)—part of ALSOK’s fundamental
spirit—, we are engaged in community contribution activities utilizing our core business in order to meetthe demands and expectations of local communities for safety and security.
Furthermore, we believe that the phrase “help maintain safety throughout society” found in our Management
Philosophy includes the meaning of protecting a future in which all people, regardless of age, gender, nationality,
religion, or disability, can live safely and securely. Based on this philosophy, we not only conduct business activities
but also participate in volunteer and donation activities, contributing to the resolution of various social issues,
promoting sports and culture, and providing educational opportunities for children who will lead the next generation.
● ALSOK ANSHIN KYOSHITSU
The ALSOK ANSHIN KYOSHITSU crime prevention classprogram, which was started in Kanagawa Prefecture in 2004,
started expanding its coverage to target regions nationwide in2005 and has continued its activities while taking infection
control measures in the face of the Covid-19 pandemic.
In order to protect as many children as possible from being
victims of crime, we are carrying out activities nationwide while
updating the contents of classes
in accordance with the times. Asof the end of March 2022, a totalof 54,439 classes have been held
since the start of the program with
1,701,753 children participating.
ALSOK ANSHIN KYOSHITSU● Providing Educational Opportunities for Children
In March 2022, we concluded a comprehensive agreement oncollaboration and cooperation with the National Institution For
Youth Education. The aim is to work together to resolve issues
facing society and youth since there is a very high affinity
between the initiatives of the National Institution For Youth
Education and those based on our Management Philosophy.
We will collaborate in areas such as cultivating awarenessof the value of life among youth and supporting children’s
cafeterias by utilizing
disaster-prevention stockpiled
food from the perspective of
reducing food loss, and provide
children with opportunities andopportunities for hands-on
experiences, involving experts
Comprehensive agreement signingfrom various fields.

● HOTTO LIFE KOZA Classes and Women’s

Crime Prevention Seminars

As a company engaged in support services for the elderly andLong-Term Care Services, we utilize the know-how we havecultivated so far to develop HOTTO LIFE KOZA Classes toprotect the elderly from bank transfer scams and burglary.
We also hold ALSOK Women’s Crime Prevention Seminars,
on-site seminars designed to protect women from falling victim
to crimes targeting women. ALSOK employees with extensive
local experience play an active role as lecturers in both theclasses and seminars.

● Regular Corporate Blood Drives
The ALSOK Group cooperates in holding corporate blood
drives in multiple regions including at the Head Office building,with the aim of helping those seeking blood transfusions. In
FY2022, a blood drive was also held at ALSOK Inagi Building
for the first time.
In October 2021, we received a letter of appreciation fromthe Tokyo chapter of the Japanese Red Cross Society inrecognition of our efforts to date.

Blood drive at the ALSOK Inagi Building

ceremony

Disaster Support and Donation Activities● ALSOK Arigato Undo Foundation Activities
The ALSOK Arigato Undo Foundation is operated with donations from officers, employees,
and other volunteers of the ALSOK Group with the aim of embodying “arigato no kokoro”(a feeling of gratefulness and gratitude), part of ALSOK’s fundamental spirit.
The collected donations support activities including social welfare and disaster relief
support in the form of subsidies to social welfare corporations, donations of welfare
vehicles, and disaster relief donations to disaster-stricken areas.

● Number of Vehicles for
Welfare Services Donated134 on a cumulative basis(as of March 31, 2022)● Donation Activities
In April 2022, a total of 9,273,500 yen was donated to the Office of the United Nations High Commissioner for Refugees (UNHCR) in
the form of the ALSOK Ukraine Relief Fund by officers and employees of ALSOK and its group companies to provide humanitarianassistance to Ukraine and surrounding areas.
ALSOK REPORT 2022

37

Overview and Vision

Sustainability and ESG

Financial Information

Consideration for the Global Environment

Based on the recognition that global environmental issues are a common challenge for all mankind, we
are working to prevent environmental pollution and reduce environmental impact by setting targets to
reduce CO2 emissions and are also addressing climate change issues and activities for protecting thenatural environment.

Initiatives Aimed at Carbon Neutrality● CO2 Emission Reduction Targets
In fiscal 2022, we set a short-term target of reducing CO2 emissions per unit sales of the entire ALSOK Group by 5.7% from theprevious fiscal year. We also reviewed our medium-term target and set the target for fiscal 2025 to reduce CO emissions (per unit ofsales) by 59% from the fiscal 2013 level.

● Initiatives for Reduction of Environmental Impacts
In addition to promoting renewal of lighting and air conditioning equipment to achieve
CO2 emission reduction targets, we are also working on power saving and eco-driving.
Due to the nature of the security guard’s work where they rush to job sites in their vehicles,
guards have many opportunities to use vehicles. Therefore, we are actively replacing themwith environmentally-friendly electric and hybrid vehicles in an effort to reduce CO2 emissions.
In 2022, we began an initiative to replace conventional three-wheeled motorcycles
used to rushing guards in densely populated areas such as urban areas with electric
three-wheeled motorcycles. In addition, we are analyzing fuel efficiency and otherfactors, and are considering introducing the system to cities in addition to Tokyo. In
fiscal 2022, we introduced approximately 40 vehicles in Tokyo and we plan to expand
this to about 200 vehicles over the next five years.

GYRO CANOPY e three-wheeled motorcycle● Introduction of the PULCLE Bicycle Sharing System
With the aim of addressing social issues from an environmental perspective andcontributing to the achievement of the SDGs, the Shizuoka Branch Office has begun
installing PULCLE stations, Shizuoka City’s shared bicycle program, in 2021. PULCLE
is an electric-assist bicycle. These bicycles are made available at multiple cycle ports in
Shizuoka City that can be rented and returned anytime at any bicycle port. PULCLE
bicycles are mainly used by ALSOK for short-distance sales activities within the city
and well received by sales and administrative staff who say that the ability to drop off
bicycles at PULCLE stations is extremely convenient because it expands their range ofactivities near stations. Furthermore, efforts such as the use of bicycles and eco-driving
have promoted a reduction in the number of sales vehicles and the amount of fuel usedper vehicle, thereby improving our contribution to reducing environmental impact.

PULCLE station at our Shizuoka Branch● Introduction of Solar Power Generation Facilities
ALSOK Gunma installed a solar power generation system on the roof of its Head Officein October 2020 to (1) cut costs by reducing the amount of electricity purchased,(2) reduce CO2 emissions, and (3) create an environment where power can be secured
during power outages (BCP measure). As a result, the amount of electricity purchased
during the first year after the introduction of the system was reduced by 19.2% YoY,
significantly curbing costs and CO2 emissions.
Solar panels on the roof of ALSOK Gunma Head Office

Aiming for Acquisition of ISO 14001 Certification by All Group Companies
In our Medium-Term Management Plan (GD2025), we are aiming for all Group companies to acquire ISO 14001 certification to further
enhance environmental management. Currently, 42 companies have already acquired the certification. We plan to have all Group
companies acquire the certification by the fiscal year ending March 31, 2023.
38

Response to Climate Change (Disclosure Based on TCFD Recommendations)
In February 2022, ALSOK endorsed the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)
established by the Financial Stability Board.
We analyze climate change-related risks and opportunities in accordance with the disclosure framework recommended by the
TCFD, and disclose the results on a corporate basis. We will continue to deepen our analysis and enhance the content of disclosure.

Governance
Strategy

The Environment Committee and the Environmental Management Subcommittee are organized to plan,
implement, and review environmental responses, and report the status of initiatives to the Board of Directors.
We identified climate change risks and opportunities under the 2°C and 4°C scenarios, and examinedcountermeasures against those risks and services that ALSOK can provide (for details of the analysis
results, please refer to the web page https://www.alsok.co.jp/company/society/tcfd/).

Risk
Management

In response to risks identified and assessed by the Environmental Management Subcommittee,
countermeasures are discussed and progress is managed as appropriate, and the content of these measures
is reported to the Environment Committee for deliberation. In addition, we have established a system for thejoint management of particularly high-impact risks in cooperation with the Risk Management Committee.

Indicators
and Target

Indicators: Greenhouse gas (GHG) emissions (Scope 1 and 2) and CO2 emissions per sales unit are
established as indicators.
Target: We set the following target in 2022: Decrease 2025 CO2 emissions (Scope 1 and 2) by 59% interms of emissions per sales unit (compared to that of fiscal 2013)

Biodiversity Conservation
Damage to forests and agricultural crops caused by harmful birds and animals is increasing
year by year, which is affecting ecosystems.
Certified as a wildlife capture operator, ALSOK Chiba is engaged in the act of capturing harmful
animal and bird pests. Furthermore, in 2020, the company opened Wild Game Facility, where it
takes in a wide range of wild boars and other animals it captures, dismantles, processes, and sells
them in an integrated manner. Processed meat is sold at restaurants in the region with which we
collaborate, and we have also begun selling frozen products online to help reduce food loss.

Wild Game Facility (ALSOK Chiba)● Tree Planting Activities
In 2015, ALSOK started tree planting activities in Chiba as a project to commemorate the 50th
anniversary of the Company’s founding. Since 2021, we have participated in the MORINO PROJECT(Public Interest Incorporated Foundation) engaged in tree planting activities. ALSOK employees
participated in a tree-planting festival held in Minamisoma City where they planted seedlings with citizens.
In addition to environmental conservation efforts such as seawall-based tree planting, we arepromoting social contribution activities that are unique to ALSOK by contributing to the safety
and security of disaster-stricken areas through the restoration of disaster-prevention forests.

Tree planting in Minamisoma City

Toward the Realization of a Recycling-Oriented Society● Showing Consideration for the Environment in Our Development and Procurement Processes
In order to further contribute to the creation of a recycling-oriented society, in accordance with the newly established CSR and
Sustainability Procurement Guidelines, we are working in cooperation with our business partners to reduce packaging materials bysending bundled alarm devices.
In addition, we have established “Guidelines for Environmentally-Friendly Design” as in-house guidelines that stipulate compliancewith the RoHS Directive and design that gives consideration to energy saving, resource saving, reuse/recycling, longer service life,
etc., to create a system to incorporate environmental considerations from the design and development stages of security equipment.

● Promoting of Reuse of Alarm Equipment
We are working to reduce the amount of waste and resources used in manufacturing by reusing alarm equipment.
Also, in order to expand the scope of leasing business, in August 2022, we expanded the floor space of the current repair centerin Kanagawa Prefecture and established a repair center in the Osaka area.
ALSOK REPORT 2022

39

Sustainability and ESG

Overview and Vision

Financial Information

Corporate Governance

Basic Policies and Systems
Based on its management philosophy exemplified by the principles of “arigato no kokoro” (a feeling of gratefulness and gratitude) and“bushi no seishin” (a samurai spirit), ALSOK devotes itself to protecting the safety and security of its customers and of society as awhole. 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, andprovide transparency in business management.

Revisions to the Rules

History of ALSOK’s Corporate Governance

Audit &
Supervisory Board Board of Directors

Year
Numberofmembers

2003

2022
2007
7

OutsideNumberofmembers
Outside

2009

2013

8

7

2015

2016

2022

8

10

2009

2016

2017

2022

1

2

3

4

2002
June
November 2002
December 2002
2004
April
2004
August

12

2008

2009

2022

4

5

4

2003

2006

2022

3

2

3

December 2004
May

2006

July

2009

April

2016

December 2021

Introduction of the Executive Officer System
Formulation of the Compliance Rules
Formulation of the Risk Management Rules
Setting up of the ALSOK Hotline
Formulation of the Basic Information
Security Policy
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
Establishment of the ALSOK Business
Partner 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.
As of the date this report was submitted, the Board of Directors is comprised of 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 matters pertaining to operational
execution and to supervise the execution of duties by directors and executive officers. The Management Committee, which is chairedby the Representative Director, Group CEO meets twice a month, in principle, to determine the agenda items to be presented to theBoard of Directors and to discuss the operational execution policies formulated based on Board of Directors’ decisions. The Audit &Supervisory Board meets once a month, in principle, to discuss and make decisions based on reports on important matters related toaudits. In addition, one Audit & Supervisory Board Member attends the Management Committee to appropriately monitor the statusof management execution.
General Shareholders’ Meeting
Board of Directors’ Meetings(Monthly)

4 Outside Directors
8 Internal Directors

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)

Total: 12

Discussions about Operational Policies on Business Affairs

Committees

Management Committee (Twice monthly)

Risk Management Committee
Compliance Committee

Group CEO (Chief Executive Officer)
Group COO (Chief Operating Officer), President

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

Internal Audits
Inspection Department
Advisory Contracts with
Attorneys in Specialized Fields

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

Executive Officers
7 Directors and Executive Officers
17 Executive Officers Total: 24

Internal Control
Operations

Legal Consultation
Legal Office(as of June 24, 2022)

40

Reasons for Appointment and Duties of Outside Directors and Outside Audit & Supervisory Board Members
Outside directors and outside Audit & Supervisory Board members are assumed to cover the functions of observation andsupervision of the management team with objective and neutral standpoints.
Outside directors and outside Audit & Supervisory Board members attend meetings of the Board of Directors, at which they offer
their opinions on the matters at hand. They receive from general managers in charge of each business and others briefings on theissues to be discussed at meetings of the Board of Directors the day prior to the meeting, allowing them to more effectively monitor
management. They also coordinate with the Inspection Department and the independent auditing corporation employed by theCompany in regard to supervision by outside directors, audits by Audit & Supervisory Board members, internal audits, andaccounting audits. To facilitate this coordination, the outside Audit & Supervisory Board members periodically exchange information
with these bodies.
The relationship between such supervision or auditing and the Internal Control Department is as follows.
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 evaluate the legality of the measures implemented by Internal Control Operationsin the same manner as other Audit & Supervisory Board members. To this end, they perform both operational and accounting auditsof the organization and review all relevant documents. The Company employs four outside directors and three 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
Attendance at Board of
Directors’ Meetings(FY2022)

Name

Reason for Election

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 to contribute toenhancing and strengthening the corporate governance of the ALSOK Group and further improvement
in corporate value, through providing valuable opinions from a broad perspective regarding themanagement team, and therefore the Company has elected him again as an Outside Director.

14/14 times

ToshieIkenaga

Ms. Toshie Ikenaga has abundant experience over many years in public administration in areas such as
gender equality and local government, as well as a high degree of insight and ability as a university
professor. We expect that she will contribute to improving and strengthening the corporate governance of
our Group and further enhancing corporate value by providing valuable opinions from a broad perspective
to our management team, and therefore the Company has elected her again as an Outside Director.

11/11 times(After the appointment ofoffice in June 2021)

Masahiko
Mishima

Mr. Masahiko Mishima possesses a wealth of experience, insight, and ability that he has cultivated overmany years as a manager at a major heavy machinery manufacturer. He is expected to contribute to
the improvement and strengthening of the Group’s corporate governance and further enhancement ofcorporate value by providing valuable opinions from a broad and high-level perspective to the
management team. Therefore, the Company has newly elected him as an Outside Director.

ー(Appointed in June 2022)

Kenji
IwasakiMr. Kenji Iwasaki possesses a wealth of experience, insight, and ability that he has cultivated overmany years as a manager at a major property & casualty insurance company and other companies.
He is expected to contribute to the improvement and strengthening of the Group’s corporate
governance and further enhancement of corporate value by providing valuable opinions from a broadand high-level perspective to the management team. Therefore, the Company has newly elected him
as an Outside Director.

ー(Appointed in June 2022)

Observation of Japan’s Corporate Governance Code
The Company observes the principles put forth by Japan’s Corporate Governance Code (the “Code”), which was formulated by the
Tokyo Stock Exchange, using these policies as guidelines for corporate governance and carrying out detailed inspections and reviewsof organizational structures. In addition, we submit a Corporate Governance Report to the Tokyo Stock Exchange, on a yearly basis
and post this report on our corporate website. This report contains information on our efforts to observe the Code.
Going forward, we will continue to examine ways to strengthen our governance system, in line with the revisions made to the
Code.

ALSOK REPORT 2022

41

Overview and Vision

Sustainability and ESG

Financial Information

Corporate Governance

Effectiveness Assessment
In assessing the effectiveness of the Board of Directors, ALSOK conducts a questionnaire survey with all directors and all Audit &Supervisory Board members as well as interviews with individual directors and auditors 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
OpinionResponse

There should also be discussions on aframework for medium- to long-term growth,
selection and concentration of operations,and expansion of areas of business.

We will consider ways to further secure a forum for follow-up on
progress toward medium- to long-term strategies and plans,investment in human capital, and discussions on sustainability
initiatives.

It is important to provide more
opportunities for outside officers tounderstand the actual situation of theCompany’s business and organization.

In addition to continuing courses for newly appointed directors, theCompany will strive to further enhance such activities as expanding
the content of education for officers, etc. based on the
management environment, on-site measures including nursing care,and providing information to outside Directors and outside Audit &Supervisory Board Members.

In an era of rapid change, there seems
to be a shortage of discussions on
management strategies and plans andprogress.

The Board of Directors will consider responses to deliberations on
management strategies and plans, as well as their progress, tofurther stimulate discussions during Board of Directors meetings.

Composition of the Board of Directors and Skill Matrix
The composition of the Board of Directors and the expertise and experience of each Director are as follows.
Corporate
Management

42

Legal Affairs/
Compliance

IT/Digital

●

●

●

Representative Director
Group COO
Senior Executive
President●●

Motohisa Suzuki

Director●●

Koji Kishimoto

Director●

Takashi Kumagai

Director●

Kazuhide Shigemi

Director●

Naoki Hyakutake

Director●

Yutaka Komatsu

Director●

Hirotomo Suetsugu

Director●

Toshie Ikenaga

Director

Masahiko Mishima

Director●

Kenji Iwasaki

Director●

Name

Position(including
sustainability)

Tsuyoshi Murai

Representative Director
Group CEOCTO (Chief Technology
Officer)

Ikuji Kayaki

Finance/
Accounting●

GlobalBusiness

Sales/
Marketing(in the areas of
security, equipment,
and long-term care)

●

●

●

●

●

●

●

●

●
●

●

●

●

●

●
●

●

●

●
●

●
●
●

●
●

●
●

●
●

●

●
●

Industry
Expertise

Human
Resource
Management●

Policies and Methods for Deciding Compensation Amounts for Officers
The maximum amount of total remuneration for Company Directors is 400 million yen and and maximum amount of total
remuneration for Audit & Supervisory Board Members is 120 million yen. In addition, the remuneration of our Company’s directors
consists of a fixed portion, which is determined by position and by whether the director is an Outside Director, and aperformance-linked portion, which is calculated based on an evaluation of the performance of each director’s execution of duties inaccordance with certain standards. The remuneration of each Audit & Supervisory Board Member is fixed, and the specific amountfor each is determined in accordance with the standards agreed by the Audit & Supervisory Board.

(Policy on Determining the Payment Ratio of Remuneration other than Performance-linked
Compensation and Performance-linked Compensation)
The performance-linked remuneration for the Company’s directors (excluding outside directors) is the predetermined compensation(bonus) paid in June of each year, and if the Company’s performance payment rate and the individual performance payment rate areboth 100%, the percentage to be paid is 45% of the total annual payment (short-term incentive: 30%, medium- to long-term
incentive: 15%). In the case where fixed monthly pay falls under the category of remuneration other than performance-linked
remuneration and both the company and individual performance payment rates are 100%, the percentage to be paid is 55% of theannual total amount of remuneration.
Non performance-linked Remuneration 55%
Fixed Pay
(Monthly payment × 12 months)
55%

Performance-linked Remuneration 45%
Short-term
incentive
30%

Medium- tolong-term
incentive
15%(Indicators pertaining to Performance-linked Remuneration, Reason for Selecting Said
Indicators, and Method of Determining the Amount of Performance-linked Remuneration)
In calculating predetermined compensation, which is linked with performance, the Company’s performance payout ratio forshort-term incentives is calculated based on a reference index (consolidated operating income + equity in earnings of affiliates +consolidated bonus), which is adjusted for consolidated operating income, while the Company’s performance payout ratio for
medium- to long-term incentives is calculated based on the three-year average annual growth rate of that reference index. In addition,
the individual performance payment rate is determined based on the degree of achievement of the goals set for each individual. After
that, the amount of payment is finally determined by multiplying each payment rate by the standard amount.

Disclosure and IR Activities
The Company has established a disclosure policy andstrives to disclose information proactively, fairly, andpromptly. In addition, information required by eachstakeholder can be obtained in an easy-to-understandmanner through the IR website. We also aim to foster a
deeper understanding among overseas institutional
investors of the security services industry in Japan and thegrowth strategies of the ALSOK Group. To this end, we
provide English-language translations of financialsummaries, short-term investment securities reports, andother documents on our English-language IR website.

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

ALSOK REPORT 2022

43

Overview and Vision

Sustainability and ESG

Financial Information

Directors, Audit & Supervisory Board Members, and Executive Officers(as of the end of July 2022)

Directors

Tsuyoshi Murai

Ikuji Kayaki

Representative Director

Representative Director(Senior Executive President)Group CEO
Chief Executive Officer
andCTO (Chief Technology Officer)

Group COO
(Chief Executive Officer)
Head of ALSOK In-house
Company
Chief Officer of Business
Promotion Affairs
Chief Officer of Business
Affairs
Business Promotion Division(East Japan Area)

Jul. 1999 Joined the Company
Jun. 2007 General Manager of Home Marketing Division
Apr. 2010 Appointed Executive Officer, Chief Officer of Regional Division (I)Feb. 2011 In charge of General Property Management
Mar. 2011 Representative Director, Japan Facilio Co., Ltd. (resigned in March 2014)
Apr. 2014 Appointed Senior Executive Officer, Deputy General Manager of Sales Headquarters
in charge of sales planning and management, and regional finance sales
Apr. 2016 In charge of Human Resources Affairs and Corporate Ethics
Jun. 2016 Appointed Director and Senior Executive Officer
Apr. 2018 In charge of General Affairs/PR, Compliance, Risk Management, andInformation Assets Management
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 Central Japan Area Sales
Apr. 2019 Executive Vice President and Director, in charge of Promotion, Tokyo 2020
Olympic and Paralympic Games Promotion Affairs
Apr. 2020 In charge of Management Company
Apr. 2022 In Charge of R&D Engineering Affairs
Jun. 2022 Appointed Representative Director (Current), Group CEO (Current), and CTO (Current)(Major concurrent positions)Jun. 2019 Appointed Deputy Chairman of the All Japan Security Service Association (Current)
Dec. 2021 Appointed as Representative Director, Sogo Shoji Limited (Current)
Jun. 2022 Appointed Chairman of the Tokyo Security Service Association (Current)

Motohisa Suzuki

Koji Kishimoto

Director(Senior Executive Officer)

Director(Senior Executive Officer)

General Affairs/PR
Compliance
Risk Management
Information AssetManagement
Management Company
Overseas Business
Chief Officer of Overseas
Business Affairs

Financial & Accounting
Internal Control
Procurement

Jan. 2015 Appointed Director of Traffic Bureau, National Police Agency (resigned in
January 2016)
Apr. 2016 Appointed Senior Executive Officer of the Company, in charge General
Affairs/PR and Procurement, Deputy Chief Officer of Security Operations
In charge of HOME ALSOK, Compliance, Risk Management,
Information Asset Management, Deputy General Manager of Sales
Headquarters
Apr. 2018 Chief of Operations, in charge of Structural Reform of Transportation
Security Services
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
Jun. 2019 Appointed Director and Senior Executive Officer (Current)
Jun. 2022 In charge General Affairs/PR (Current) and Compliance (Current)
In charge of Risk Management (Current), Information Asset Management(Current), and General Company (Current)
In charge of Overseas Business (Current) and General Manager ofOverseas Business Headquarters (Current)

44

Apr. 1982 Joined the Company
Apr. 2011 Chief Officer of Regional Division (Ⅳ)
Apr. 2012 Appointed Executive Officer
Apr. 2014 Deputy Chief of Operations, in charge of Structural Reform ofTransportation Security Services
Apr. 2015 Appointed Senior Executive Officer, Chief Officer of Security Operations
Jun. 2017 Appointed Director and Senior Executive Officer
Apr. 2018 Appointed Executive Vice President and Representative Director, General
Manager of ALSOK Company (Current)
In charge of East Japan Area (Current), Deputy Chief Officer of Business
Promotion Affairs, in charge of Corporate Customers
Apr. 2019 Appointed Vice President and Representative Director, Senior Executive
Vice President, Chief Officer of Business Promotion Affairs (Current)
In charge of Corporate Customers, in charge of East Japan Area Business(Current)
Apr. 2021 Chief Officer of Regional Division (VI)
Jun. 2022 Appointed Representative Director (Current) and Group COO (Current)
Senior Executive President (Current)

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

Takashi Kumagai

Kazuhide Shigemi

Director (Senior Executive Officer)

Director(Senior Executive Officer)

Long-Term Care Services
Deputy Chief Officer ofBusiness Promotion Affairs
Life Holdings Co., Ltd.
President and Representative Director
President and Representative
Director, Life Holdings Co., Ltd.
MBIC life Co., Ltd.
President and Representative Director
ALSOK Care Co., Ltd.
President and Representative
Director

Jul. 2014 Director General, Reconstruction Agency (resigned in June 2016)
Oct. 2016 Appointed Executive Officer of the Company, Second in Charge ofManagement Company, Second in Charge of Regional Management
Deputy Chief Officer of R&D Engineering Affairs, Deputy Chief Officer ofBusiness Promotion Affairs, Second in Charge of Sales Promotion, Secondin Charge of Corporate Customers
Apr. 2017 Appointed Senior Executive Officer, Deputy Chief Officer of Business Promotion
Division Long-term Care (Current), in charge of Management Company
In charge of Regional Management, Deputy Chief Officer of Business
Promotion Affairs, Second in Charge of Sales Promotion
Apr. 2018 Deputy Chief Officer of Business Promotion Affairs, in charge of HOME
ALSOK
Apr. 2020 Deputy Chief Officer of Business Promotion Affairs (Current)
Appointed President and Representative Director, Life Holdings Co., Ltd.
(Current)
Appointed President and Representative Director, Life Holdings Co., Ltd.
(Current)
Appointed President and Representative Director, Life Holdings Co., Ltd.
(Current)
Apr. 2022 Appointed President and Representative Director, Life Holdings Co., Ltd.
(Current)
Jun. 2022 Appointed Director and Senior Executive Officer (Current)

Corporate Planning &Administration
Strategic Business

Apr. 2009 Mizuho Corporate Bank, Ltd. (currently Mizuho Bank, Ltd.)
General Manager, Osaka Sales Dept. No.2 (resigned in April 2012)
May. 2011 General Manager of the Regional General Administration Department of theCompany
Apr. 2013 General Manager of Group Management Department
Apr. 2015 General Manager of Corporate Planning & Administration Department
Apr. 2017 Appointed Executive Officer, Second in Charge of Corporate Planning &Administration, Second in Charge of Strategic Business
Apr. 2019 Appointed Senior Executive Officer, in Charge of Corporate Planning &Administration, in Charge of Strategic Business
Jun. 2022 Appointed Director and Senior Executive Officer (Current)

Naoki Hyakutake

Yutaka Komatsu

Director(Senior Executive Officer)

Director(Senior Executive Officer)

Human Resources Affairs
Corporate Ethics

Stationed in the Kansai Region
West Japan Area
Expo 2025 security operations
Deputy Chief Officer of Business
Promotion Affairs
West Japan Area Business
Chief Officer of Regional Division (II)
Chairman, President, and Representative
Director, ALSOK KINKI Co., Ltd.
Chairman and Representative Director,
ALSOK OSAKA Co., Ltd.

Apr. 1989 Joined the Company
Apr. 2016 Transferred and appointed President and Representative Director of
ALSOK Care & Support Co., Ltd. (resigned in March 2017)
Apr. 2017 General Manager of Human Resources Department
Apr. 2019 Appointed Executive Officer, in charge of Human Resources
Apr. 2022 Appointed Senior Executive Officer, Second in Charge of Human
Resources Affairs
Jun. 2022 Appointed Director and Senior Executive Officer (Current), in charge of
Human Resources Affairs
Corporate Ethics (Current)

Mar. 1981 Joined the Company
Apr. 2008 General Manager of Corporate Sales Division 1
Oct. 2014 Transferred and appointed President and Representative Director of
Hokkaido Sohgo Security Services Co., Ltd. (currently ALSOK Hokkaido
Co., Ltd.)
Apr. 2020 Appointed Executive Officer
Appointed President and Representative Director, ALSOK Hokkaido Co., Ltd.
Apr. 2022 Appointed Senior Executive Officer
Appointed Chairman and Representative Director, ALSOK Hokkaido Co., Ltd.
Jun. 2022 Appointed Director and Senior Executive Officer (Current)
In charge of West Japan Area (Current)
In charge of Expo 2025 security operations (Current)
Chief Officer of Business Promotion Affairs, in charge of West Japan Area
(Current)
Chief Officer of Regional Division (II) (Current)
Appointed Chairman, President, and Representative Director, ALSOKKINKI Co., Ltd. (Current)
Appointed Chairman and Representative Director, ALSOK OSAKA Co.,
Ltd. (Current)

ALSOK REPORT 2022

45

Overview and Vision

Sustainability and ESG

Financial Information

Directors, Audit & Supervisory Board Members, and Executive Officers(as of the end of July 2022)

Directors (Outside Directors)

Hirotomo Suetsugu

Toshie Ikenaga

Director (Outside Director)

Director (Outside Director)

Apr. 2009 Appointed Executive Officer, Nippon Steel Corporation (resigned in June 2012)
Jun. 2012 Appointed Auditor, NIPPON STEEL CORPORATION) (resigned in June 2016)
Jun. 2016 Appointed as Advisor, NIPPON STEEL & SUMITOMO METAL CORPORATION(Currently NIPPON STEEL CORPORATION) (Resigned in June 2019)
Appointed Advisor, Nippon Denko Co., Ltd. (resigned in June 2021)
Jun. 2020 Appointed Executive Director, Nippon Denko Co., Ltd. (Current)

Masahiko Mishima

Kenji Iwasaki

Director (Outside Director)

Director (Outside Director)

Apr. 2016 Appointed Executive Officer, Mitsubishi Heavy Industries, Ltd.
Oct. 2018 Appointed Senior Executive Officer, Mitsubishi Heavy Industries, Ltd.
Jun. 2019 Appointed Director and Senior Executive Officer, Mitsubishi Heavy
Industries, Ltd.
Jun. 2021 Appointed Senior Executive Officer, Mitsubishi Heavy Industries, Ltd.
(resigned in September 2021)
Oct. 2021 Appointed Advisor, Mitsubishi Heavy Industries, Ltd. (Current)
Jun. 2022 Appointed Executive Director, Nippon Denko Co., Ltd. (Current)

Executive
Officer46

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 July 2018)
Jul. 2018 Appointed Director General, Gender Equality Bureau, Cabinet Office(Resigned in August 2020)
Jun. 2021 Appointed Outside Director (Current)(Major concurrent positions)Jun. 2021 Appointed Audit & Supervisory Board Member, Shimizu Corporation(Current)
Jul. 2022 President, National Hospital Organization (Current)

Jun. 2009 Appointed Executive Officer, Tokio Marine & Nichido Fire Insurance Co., Ltd.
Jun. 2010 Appointed Managing Director, Tokio Marine & Nichido Fire Insurance Co., Ltd.
Apr. 2014 Appointed Executive Director, Tokio Marine & Nichido Fire Insurance Co., Ltd.
Apr. 2017 Appointed Vice President and Representative Director, Tokio Marine &Nichido Fire Insurance Co., Ltd. (resigned in March 2018)
Appointed the position of Senior Executive Vice President, Tokio Marine
Holdings, Inc.
Jun. 2017 Appointed Vice President and Representative Director, Tokio Marine
Holdings, Inc. (resigned in June 2018)
Jun. 2018 Appointed Executive Director, General Insurance Association of Japan(resigned in June 2022)
Jun. 2022 Appointed Outside Director (Current)(Major concurrent positions)Jun. 2022 Appointed President and Representative Director, HMS Holdings Co., Ltd. (Current)
Jul. 2022 Audit & Supervisory Board Member, DAIICHISEIWA JIMUSHO CO,.LTD. (Current)

Hiroyoshi Yoshida Seiji Ono

Ken Takahashi

Yoshio Kumazaki Tetsuya Tsuburaya Yutaka Miyajima

Masahiro Kikukawa Wataru Saito

Senior Executive Officer

Senior Executive Officer

Senior Executive Officer

Senior Executive Officer Executive Officer

Executive Officer

Executive Officer

Executive Officer

Chief Officer ofSecurity Operations
Structural Reform ofTransportation
Security Services
Expo 2025 (external)

Deputy Chief Officer
of Business
Promotion Affairs
Corporate Customers
Business Planning &Management
Sales Promotion

Central Japan Area
Deputy Chief Officer ofBusiness Promotion
Affairs
Facility Management (FM)HOME ALSOK
Central Japan Area
Sales

Chief Officer ofRegional Division (I)Deputy Chief Officer
of Business
Promotion Affairs
Metropolitan Area

Second in Charge ofCorporate Planning &Administration
General Manager ofCorporate Planning &Administration
Department

Second in Charge ofStrategic Business
General Manager ofStrategic Business
Department

Second inCharge of R&D
Engineering
Affairs

Second in Charge ofGeneral Affairs
Department
General Manager ofGeneral Affairs
Department

Audit & Supervisory Board Members

Juichiro Mochizuki

Shinichiro Nakano

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

Apr. 1982 Joined the Company
Aug. 2012 General Manager of Security Services (I)Apr. 2014 Transferred to Ibaraki Sohgo Security Services (now ALSOK Ibaraki Co., Ltd.)
Appointed President and Representative Director, (resigned in March 2020)
Apr. 2020 Chief Officer of Regional Division (VI)
Apr. 2021 Chief Officer of Regional Division (VII)Jun. 2022 Appointed Full-time 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 Appointed Managing Director, The Norinchukin Bank (resigned in March2019)
Appointed Director, Norinchukin Value Investments Co., Ltd. (resigned in
March 2018)
Director, The Norinchukin Trust & Banking Co., Ltd. (resigned in March2019)
Appointed Auditor, Kyodo Housing Loan co.,Ltd. (resigned in June 2019)
Apr. 2019 Appointed Standing Advisor, The Norinchukin Bank (resigned in Jun. 2019)
Jun. 2019 Appointed Full-time 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 March 2013)
Apr. 2012 Auditor, Daini Tokyo Bar Association (Resigned in March 2013)
Mar. 2013 Appointed Outside Board Director, OTSUKA KAGU, LTD. (resigned in Mar.
2019) Note: Audit & Supervisory Committee Member from Mar. 2017
Jul. 2018 Appointed Audit & Supervisory Committee Member, Building Research Institute, National Researchand Development Agency, Japan, Ministry of Land, Infrastructure, Transport and Tourism (Current)
Apr. 2020 Appointed Audit & Supervisory Committee Member, Japan Federation of
Bar Associations (resigned in March 2021)
Jun. 2020 Appointed Audit & Supervisory Board Member (Current)
Jul. 2020 Appointed Vice Chairman, Finance Committee, Japan Federation of Bar Associations (resigned in June 2017)(Major concurrent positions)Jan. 2008 Appointed Partner at THE TOKYO-MARUNOUCHI LAW OFFICES (Current)
Jun. 2019 Appointed Outside Director, SB Players Corp. (Current)
Jun. 2020 Appointed Outside Audit & Supervisory Board Member, Sojitz Corporation (Current)

Sep. 1990 Appointed Director, CFO, Matsushita Radio Singapore Pte. Ltd. (resigned in May 1996)
Jan. 2001 Appointed Chief Accountant, China Hualu Matsushita AVC Co., LTD.
(resigned in January 2004)
Apr. 2009 Appointed Executive Officer, Panasonic Corporation (currently Panasonic Holdings Co., Ltd.)
Jun. 2011 Appointed Managing Director, Panasonic Corporation (currently PanasonicHoldings Co., Ltd.) (resigned in June 2014)
Apr. 2014 Appointed President and Representative Director, SANYO Electric Co., Ltd.
(resigned in March 2017)
Apr. 2017 Appointed Advisor, Panasonic Corporation (currently Panasonic Holdings
Co., Ltd.) (resigned in March 2018)
Apr. 2018 Appointed Special Advisor, Hardlock Industry Co., Ltd. (Current)
Aug. 2020 Appointed Advisor, Uokuni Food Services Co.,Ltd. (Current)
Jun. 2021 Appointed Audit & Supervisory Board Member (Current)(Major concurrent positions)Jun. 2020 Appointed Outside Auditor, ASANUMA CORPORATION (Current)

Eiji Kuwabara Satoshi Yoneda Tomoyuki Arita Shinichiro Hayashi

Hiroyuki Ono

Masayuki Chikaoka Kenichi Kakimoto Kengo Takeda Shigeki Nomura

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Research

Second in Chargeof Sales Promotion
Second in Chargeof Corporate
Customers

Second in Chargeof Corporate
Customers
General Manager
of Corporate Sales
Division 1

Finance Business
Planning &Management
Second in Charge

Chief Officer ofRegional Division(III)

Chief Officer ofRegional Division(Ⅳ)

Chief Officer ofRegional Division(V)

Chief Officer ofRegional Division(IX)

Stationed Security(Tokyo)President andRepresentative
Director, ALSOKSTATIONEDSECURITY CO., LTD.

ALSOK REPORT 2022

47

Overview and Vision

Financial Information

Sustainability and ESG

Financial Review

Review of the Fiscal 2022
As a business operator that provides services related to thesafety and security of society, which are essential to ensuring
the stability of people’s lives and the national economy, the
ALSOK Group provides services appropriately andcontinuously while taking adequate measures to prevent
infection, playing a central role in the security of the Tokyo
2020 Olympic Games, and has contributed to the response to
Covid-19, such as the security of vaccination sites. The Groupaims to become a robust comprehensive safety and security
service business that supports the safety and security ofcustomers and society as stated in its Medium-Term
Management Plan “Grand Design 2025.” To meet the safety
and security needs of our customers and society, which areexpanding as risks diversify, we are working to provide newservices that combine various service functions such as
security, equipment provision, and nursing care.
Under these circumstances, net sales in fiscal 2021
increased 4.1% year-on-year to 489,092 million yen, marking
the 12th consecutive year of increase. Operating income was
42,865 million yen (up 15.3% year on year), ordinary income
was 44,796 million yen (up 14.2% year on year), and profit
attributable to owners of parent was 28,964 million yen (up15.8% year on year), marking the tenth consecutive year ofincrease. In addition, we place importance on ordinary income
margin and ROE as objective indicators to determine thestatus of achievement of management targets. In our “Grand
Design 2025” Medium-Term Management Plan, we set atarget of 10.0% or more for both indicators, and in fiscal year
2021, we achieved an ordinary income to net sales ratio of
9.2% and ROE of 10.0%. In addition to strengthening its

Net Sales

Financial Position
Total assets at the end of FY2022 amounted to 488,278
million yen (up 1.4% from the end of the same period lastyear), of which current assets amounted to 233,872
million yen (up 2.7%) and fixed assets amounted to254,405 million yen (up 0.2%). Total liabilities amounted
to 160,768 million yen (down 9.2% from the end of thesame period last year), of which current liabilities
amounted to 90,384 million yen (down 12.9%) andlong-term liabilities amounted to 70,383 million yen(down 3.9%).
Net assets totaled 327,509 million yen (up 7.6% YoY).

Basic Policy on Financial Discipline
Under the Grand Design 2025 Medium-Term
Management Plan, we are aiming for an ROE of 10% ormore as a medium-term financial target. In order toimprove ROE, our basic policy is to maintain stabledividends with a dividend payout ratio of 30% andincrease profitability with a medium-term target of raising
the ratio of consolidated ordinary profit to net sales toOrdinary Income¥489.0 billion¥44.7 billion

YOY

Up

4.1%

(Billions of yen)
600

YOY

Up

14.2%

(Billions of yen)60

¥489.0¥44.7

billion

450

45

300

30

150

15

0

billion

0

2018

48

Security Services business through M&A and other means,
the ALSOK Group is expanding its General Property
Management and Fire Protection Services business, which ishighly compatible with the Security Services business, and its
Long-Term Care Services for the elderly focusing on
appropriately meeting the safety and security needs of ourcustomers and society which are expanding as risks diversify.

2019

2020

2021

2022

(FY)

2018

2019

2020

2021

2022

(FY)

10% or more. Against this backdrop, the ALSOK Group’s
equity ratio has been stable at the end of the last five
years, and we believe that this is the result of our efforts
to maintain financial discipline while giving due
consideration to both shareholders and creditors in abalanced manner.

Policy on Growth Investments(Capital Investments/Researchand Development)

ALSOK conducts research to respond to the growing needfor safety and security in a society where risks are becoming
increasingly diverse, including “labor shortages due to thefalling birthrate and aging population,” “increasing natural
disasters,” “diversification of familiar crimes,” “increasingly
sophisticated cyber attacks,” and “environmental changes
such as infectious diseases.” In addition, we will promote
open innovation, promote industry-academia-government
collaboration on cutting-edge technologies, and respond toever-changing social conditions.

Shareholder Return Policy
As for capital expenditures, in the fiscal year under review, theGroup made capital investments totaling 16,280 million yen inproperty, plant and equipment and intangible assets in orderto respond to the expansion of its business centered on
security services and to improve its capabilities. Main
expenditures were for machinery security equipment (6,824
million yen), buildings and structures (321 million yen),equipment and fixtures (1,483 million yen), and software(2,561 million yen).
The basic policy of R&D is to identify diversifying market
needs and promote the development of market-competitivetechnologies and products with the aim of contributing to theimprovement of profitability. In fiscal 2022, R&D expenses
totaled 565 million yen, mainly related to the Security Services
business. In addition, the R&D department of the Company
conducts research, planning, intellectual property
management, quality control, and other activities that do not
fall under the category of research and development as anintegral part of R&D. The total amount of R&D expenses plus
expenses related to these activities is 1,401 million yen.

ALSOK positions the return of profits to shareholders as animportant management policy, and its basic policy is to
distribute the results supported by business performance
while enhancing internal reserves. Internal reserves will beallocated to research and development expenses necessary
for future growth and development, as well as capital
investment for upgrading information systems and new
businesses, in an effort to further improve businessperformance. ALSOK’s basic policy is to pay dividends fromsurplus twice a year, an interim dividend and a year-end
dividend. The decision-making body for these dividends is theGeneral Meeting of Shareholders for the year-end dividend
and the Board of Directors for the interim dividend.
The dividend for fiscal 2022, combined with the interim
dividend (38.00 yen per share), was 82.00 yen per share,
based on comprehensive consideration of businessperformance for the current fiscal year, earnings forecasts forthe next fiscal year and capital investment plans, and otherfactors. The consolidated dividend payout ratio was 28.7%.

Capital Investments

Dividend Per Share¥16.2 billion

¥82

YOY

Up

19.3%

YOY

Up

¥10

(yen)

(Billions of yen)

20

¥16.2

100

¥82

billion

80

15

60
10
40
5

0

20

2018

2019

2020

2021

2022

(FY)

0

2018

2019

2020

2021

2022

ALSOK REPORT 2022

(FY)

49

Overview and Vision

Sustainability and ESG

Financial Information

Management Indexes
2012

2013

2014

2015

Net Sales

304,723

315,564

328,209

365,749

Cost of sales

232,812242,410

248,900

276,116Gross profit

71,91073,15379,30889,632

Selling, general and administrative expenses

61,10061,36360,37566,660Operating income

10,81011,79018,932

22,971

Ordinary Income

12,55814,741

20,74524,700

Profit Attributable to Owners of Parent

3,903

8,574

10,955

13,534Gross profit margin (%)

23.6

23.2

24.2

24.5

Operating income margin (%)

3.5

3.7

5.8

6.3

Ordinary income margin (%)

4.1

4.7

6.3

6.8

Return on assets (ROA) (%)

4.4

5.1

6.5

6.9

Return on equity (ROE) (%)

2.7

5.7

7.0

7.8

EV/EBITDA (Times)*

1.4

2.7

5.3

10.1

51.3

52.1

46.2

48.4

Fiscal year ended March 31

Profit and loss (Millions of yen)

Profitability

Stability
Equity capital ratio (%)

34.8

46.5

63.5

110.1

39,27037,45571,66673,699

34.1

36.9

36.4

28.5

Total asset turnover ratio (Times)

1.1

1.1

1.0

1.0

Shareholders’ equity turnover ratio (Times)

2.1

2.1

2.1

2.1

Tangible fixed assets turnover ratio (Times)

5.2

5.4

5.2

5.4

1,446.93

1,536.30

1,574.74

1,800.15

38.83

85.30

108.99134.65Equity capital ratio on market-value basis (%)
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)Price-book value ratio (Times)

0.7

0.9

1.4

2.3

Price earnings ratio (Times)

25.3

16.1

19.9

30.4

Dividends per share (Yen)

20

25

30

38

Consolidated dividend payout ratio (%)

51.5

29.3

27.5

28.2

Closing stock price

982

1,373

2,164

4,095

27,86828,05428,091

31,221

13.3

13.8

14.4

14.9

93.3

97.6

92.4

96.6

－

－

0.312

0.265

－

－

102,31396,962Other information
Number of employees (Consolidated)
Average number of years of continuous service (Non-consolidated)
Percentage of employees returning to work after childcare leave(Non-consolidated, total for male and female employees) (%)

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

M&A Activities

・ALSOK Souei Co., Ltd.
・Nippon Building
Maintenance Co., Ltd.
(Currently ALSOKFACILITIES CO., LTD.)
・ANTEI CO., LTD. (Currently
ALSOK CARE CO., LTD.)
・HCM Corporation (Currently
ALSOK CARE CO., LTD.)
・ALSOK Care & Support
Co., Ltd.

* 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* The method and scope of CO2 emissions calculation have been changed since the fiscal Year Ended March 31, 2021
Note: Based on the “Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ Statement No. 28, February 2018), financial information for fiscal 2017 and subsequent years has also been restated.

50

2016

2017

2018

2019

2020

2021

2022

381,818

413,343435,982443,535

460,118

469,920

282,880

310,704

330,493334,197

345,097352,81198,937

102,639

105,489

109,338

115,020

117,108

69,901

74,21775,37877,05778,22479,92629,03628,422

30,11132,28036,79537,182

30,66730,30931,91333,881

38,88039,212

17,86818,33019,344

22,26924,16325,014

489,092
363,511
125,581
82,71542,86544,79628,964

25.9

24.8

24.2

24.7

25.0

24.9

7.6

6.9

6.9

7.3

8.0

7.9

8.0

7.3

7.3

7.6

8.5

8.3

8.5

8.2

8.2

8.4

9.3

8.6

9.9

9.7

9.3

9.9

10.1

9.6

13.4

8.7

10.7

8.7

8.6

8.7

51.9

51.0

55.0

56.8

57.3

57.6

175.4

108.2

134.3

119.0

124.2

110.0

47,21065,59952,65847,412

51,26469,983

30.1

54.2

25.8

18.1

26.2

27.3

1.1

1.1

1.1

1.1

1.1

1.0

2.1

2.2

2.1

2.0

1.9

1.8

5.3

5.1

4.9

5.0

5.2

4.9

1,805.09

1,956.25

2,155.74

2,302.38

2,425.02

2,741.27

177.77182.37191.93219.98238.69247.09

3.4

2.1

2.4

2.1

2.2

1.9

34.3

22.8

27.5

21.9

22.0

21.2

50

55

60

66

70

72

28.1

30.2

31.3

30.0

29.3

29.1

6,100

4,155

5,260

4,820

5,260

5,230

31,446

36,69337,51937,41737,90238,444

15.4

15.9

16.4

16.8

17.2

17.4

93.7

91.3

98.3

98.1

98.2

98.1

0.242

0.219

0.206

0.191

0.177

0.181

92,45390,62289,73584,65581,28685,501

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

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

25.7
8.8
9.2
9.2
10.0
5.3
61.5
82.9
54,260
22.3
1.0
1.7
4.9
2,964.85
286.11
1.3
14.0
82
28.7
4,000
38,192
17.6
95.2
0.174
85,146

・Life Holdings Co., Ltd.

ALSOK REPORT 2022

51

Overview and Vision

Financial Information

Sustainability and ESG

Breakdown of Sales/Number of Contracts

Net Sales by Service Type(Billions of yen)

2020

2021

2022

175.5

175.6

176.7

177.2

111.9

116.9

113.1

128.8

62.2

65.6

65.6

67.8

61.9

62.9

69.2

68.1

67.4

2013

2014

2015

2016

2017

2018

Electronic Security Services 147.1

151.8

160.4

167.1

170.5

174.0

Stationed Security Services

73.8

77.2

88.4

93.9

100.4

110.0

Transportation Security Services 50.8

51.0

52.3

54.6

56.1

60.2

44.8

58.3

54.9

57.8

Fiscal year ended March 31

2019

Security Services

General Property Management
and Fire Protection Services

40.6

Long-Term Care Services*1

―

―

―

7.5

24.9

25.7

26.5

28.1

40.3

41.6

Other

3.0

3.2

6.2

3.5

3.4

3.9

4.2

4.6

5.8

6.0

Total

315.5

328.2

365.7

381.8

413.3

435.9

443.5

460.1

469.9

489.0

*1 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.”

Net Sales by Client Type(Billions of yen)

Fiscal year ended March 31

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

Business corporations

186.5

196.7

224.9

234.3

244.9

263.6

271.2

282.9

278.2

292.9

Financial institutions

89.8

90.5

91.3

92.3

91.7

92.0

91.4

93.2

92.0

88.5

Public institutions

22.0

22.8

26.4

26.2

29.7

31.5

31.2

32.2

35.3

41.4

Individual Users*

17.1

18.0

22.9

28.9

46.8

49.0

49.7

51.6

64.1

66.1

Total

315.5

328.2

365.7

381.8

413.3

435.9

443.5

460.1

469.9

489.0

2

*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(Contracts)

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

630,977

677,672

803,601

854,083

888,955

922,928

949,858

973,066

990,155

1,009,259

Corporate Clients

422,676

440,028

463,053478,925

493,035

508,374

520,942533,733

540,410548,580

Individual Users

208,301

237,644

340,548

375,158

395,920

414,554428,916

439,333

449,745

460,679 *4

Stationed Security Services

3,020

3,227

3,597

3,871

4,213

4,357

4,485

4,468

4,371

4,584

Transportation Security Services

Fiscal year ended March 31

Security Services
Electronic Security Services

51,69855,42059,134

62,14665,75572,45475,652

77,791

79,28979,582

General Property Management
54,903and Fire Protection Services

63,00473,89881,90889,67098,044104,254

109,697

113,880

123,504―――

12,804

22,62821,23425,364

24,97627,503

27,118Other

11,98913,72522,477

18,21722,28525,26325,896

29,382

29,693

34,778

Total

752,587

813,048962,707 1,033,029 1,093,506 1,144,280 1,185,509

1,219,380

1,244,891

1,278,825

Long-Term Care Services*3*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 1,250,000.

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 15 consecutive years.

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

ALSOK has been included in the MSCIJapan ESG Select Leaders Index, an ESG
investment index, for six 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 NOTCONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF SOHGO SECURITY SERVICES CO., LTD. BY MSCI OR ANY OF ITS AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVEPROPERTY 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 bya wide variety of market participants to create and assess responsible investment funds and other products.

52

Overview and Vision

Sustainability and ESG

Financial Information

Corporate Information/Stock Information

Corporate Information(As of March 31, 2022)

Distribution of Shares by Shareholder Type

Corporate NameSOHGO SECURITY SERVICES CO., LTD.

Head Office

1-6-6 Motoakasaka, Minato-ku, Tokyo 107-8511, Japan

Established

July 16, 1965

Capital¥18,675 million

Fiscal Year-End

March 31

Employees(Consolidated) 38,192

Treasury Stock
0.8%

Financial Institutions
33.1%

Individuals
and Other
17.8%
Foreign Investors
23.8%(Non-consolidated) 12,002
Business Operations Head Office/64 Branches/37 Offices/255 Sales
Offices/74 Consolidated Subsidiaries (Including
10 Overseas Subsidiaries)/14 Companies
Accounted for by the Equity Method(Including 3 Overseas Subsidiaries)

Securities Companies 1.1%

Domestic Corporations
23.5%

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

Name

Stock Information
Total Number of Shares
Authorized

300,000,000 shares

Number of Shares Issued

102,040,042 shares(Including 782,282 shares of treasury stock)

Number of Shareholders at 11,135
the End of the Preceding
Fiscal Period
Stock Listing

Tokyo Stock Exchange (Prime Market)

Securities Code2331

Minimum Trading Lot

100 shares

12,218Japan Master Trust Bank, Ltd. (Trust account)
7,388
SOHGO CORPORATION
5,352
Custody Bank of Japan, Ltd. (Trust account)
5,283
Saitama Machinery Co., Ltd.
4,150
Kamakura Corporation
3,558
Employees Shareholding Association
Custody Bank of Japan, Ltd. (as trustee for Mizuho
Bank Ltd. Retirement Benefit Trust Account re-entrusted
2,961
by Mizuho Trust and Banking Co., Ltd.)
2,950
Kizuna Corporation
2,885
Atsushi Murai
SMBC Trust Bank Ltd. (as trustee for retirement benefit
2,735
of Sumitomo Mitsui Banking Corporation)

12.06
7.29
5.28
5.21
4.09
3.51
2.92
2.91
2.84
2.70

Note: Each controlling share is calculated based on the total number of shares excluding
the number of treasury stock (782,282 shares).

ALSOK REPORT

2022[Fiscal Year Ended March 31, 2022]

SOHGO SECURITY SERVICES CO., LTD.
Securities Code 2331

ALSOK REPORT
Comprehensive

ALSOK Report 2022 has been constructed as an integrated report that compiles
financial information on the Company’s performance, business operations, andstrategies as well as non-financial information on its corporate social responsibility(CSR) activities and other topics with the aim of obtaining the opportunity to deepen
our engagement with shareholders, investors, and other stakeholders.
In addition to describing the state of management from an economic perspective,
this report also explains the ALSOK Group’s environmental, social, and governance(ESG) initiatives as well as the various CSR activities the Group carries out tocontribute to the international 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 inthis report are available on the Company’s corporate website.

Focused

Editorial Policy

Information for Shareholders
and Other Investors
Sustainability/CSR

Importance to the ALSOK Group and stakeholders

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

Guidelines Referred to
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

Information for Shareholders and Other Investors
For more information on management policies, financial and business results, IR library, and stock information, please visit our 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 in line with ISO 26000, please visit our website.

https://www.alsok.co.jp/en/csr/
ALSOK REPORT 2022

53

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

T E L +81-3-3423-2331
FAX +81-3470-1565
T E L +81-3470-1972
FAX +81-5411-1636● The CO2 (2,000 kg) emitted in preparing this report was carbon offset
by offset credits certified by the Ministry of the Environment.

・OLM SYSTEM, TAKURUS, MMK, REBORG are registered trademarks of SOHGO SECURITY SERVICES CO., LTD.