ALSOKREPORT

2023[Fiscal year ended March 31, 2023]

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

T E L . 03-3423-2331
FAX. 03-3470-1565
T E L . 03-3470-1972
FAX. 03-5411-1636

CSR and Social Contribution Activities
For more information on the activities we are implementing through our core business inline with ISO 26000, please visit our website.

https://www.alsok.co.jp/en/csr/
・ALSOK ANSHIN KYOSHITSU, REBORG, HOME ALSOK MIMAMORI SUPPORT, HOME ALSOK Connect areregistered trademarks of SOHGO SECURITY SERVICES CO., LTD.

2,109kg-CO2 emitted in preparing this report was carbon offset by offset credits certified by the Ministry of the Environment.

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

Always Security OK
Our corporate brand adopted from our commitment to delivering “Always Security OK, 24 hours a day,
7 days a week.”
Today we are delivering services across a range of new fields beyond the scope of security.
ALSOK will continue to address a host of risks head on and contribute to solving social and customer issues.

Introduction
Table of Contents
ALSOK’s History of Value Creation
Businesses, Products and Services from ALSOK

AlwaysFinancial and Non-Financial Highlights

Security

01
02
04
06

Message from Top Management

08
11

Message from Group CEO
Message from Group COO

OK

ALSOK’s Story of Value Creation

14
16
18
25

ALSOK’s Value-Creation Model
ALSOK’s Strengths
About Our Business Operations
Medium-Term Management Plan
Sustainability and ESG
Sustainability and CSR Management
Providing Trustworthy Security Services
Providing Products and Services That Help
Resolve Social Issues

Editorial Policy

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 concerning CSR and other matters in general.

FocusedExplanation of CoverALSOKREPORT

2023[Fiscal year ended March 31, 2023]

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

ALSOK REPORT
Comprehensive

ALSOK Report 2023 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, andgovernance (ESG) initiatives as well as the various CSR activities the Group carries out to contribute 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 in this report are available on the Company’s corporate website.

ALSOKREPORT

2023[Fiscal year ended March 31, 2023]

Information for Shareholders
and Other Investors
Sustainability and CSR
Importance to the ALSOK Group and stakeholders

00

Cultivating Human Resources and Building a
Comfortable Workplace Environment

34

Contributing to Local Communities throughActive Communication38

Supply chain management

39
40
42
46

Consideration for the Global Environment
Corporate GovernanceDirectors, Audit & Supervisory Board Members,
and Executive Officers
Financial Information
Financial Section

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

The cover features glass tinged withseven colors, embodying(1) Corporate transparency and positive
dialogue with investors(2) Seven divisional structure commencing
from April 2023 for strengthening
business promotion capabilities(3) Diversified businesses and intrabusiness synergy, and a desire tocontribute to society from a range ofperspectives

・Global Reporting Initiative (GRI), Sustainability Reporting Standards
・Ministry of the Environment (MOE), Environmental Reporting Guidelines 2018

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

26
28
30

Corporate Information/Stock Information
ALSOK REPORT 2023

48
53
01

Always Security OK
Our corporate brand adopted from our commitment to delivering “Always Security OK, 24 hours a day,
7 days a week.”
Today we are delivering services across a range of new fields beyond the scope of security.
ALSOK will continue to address a host of risks head on and contribute to solving social and customer issues.

Introduction
Table of Contents
ALSOK’s History of Value Creation
Businesses, Products and Services from ALSOK

AlwaysFinancial and Non-Financial Highlights

Security

01
02
04
06

Message from Top Management

08
11

Message from Group CEO
Message from Group COO

OK

ALSOK’s Story of Value Creation

14
16
18
25

ALSOK’s Value-Creation Model
ALSOK’s Strengths
About Our Business Operations
Medium-Term Management Plan
Sustainability and ESG
Sustainability and CSR Management
Providing Trustworthy Security Services
Providing Products and Services That Help
Resolve Social Issues

Editorial Policy

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 concerning CSR and other matters in general.

FocusedExplanation of CoverALSOKREPORT

2023[Fiscal year ended March 31, 2023]

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

ALSOK REPORT
Comprehensive

ALSOK Report 2023 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, andgovernance (ESG) initiatives as well as the various CSR activities the Group carries out to contribute 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 in this report are available on the Company’s corporate website.

ALSOKREPORT

2023[Fiscal year ended March 31, 2023]

Information for Shareholders
and Other Investors
Sustainability and CSR
Importance to the ALSOK Group and stakeholders

00

Cultivating Human Resources and Building a
Comfortable Workplace Environment

34

Contributing to Local Communities throughActive Communication38

Supply chain management

39
40
42
46

Consideration for the Global Environment
Corporate GovernanceDirectors, Audit & Supervisory Board Members,
and Executive Officers
Financial Information
Financial Section

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

The cover features glass tinged withseven colors, embodying(1) Corporate transparency and positive
dialogue with investors(2) Seven divisional structure commencing
from April 2023 for strengthening
business promotion capabilities(3) Diversified businesses and intrabusiness synergy, and a desire tocontribute to society from a range ofperspectives

・Global Reporting Initiative (GRI), Sustainability Reporting Standards
・Ministry of the Environment (MOE), Environmental Reporting Guidelines 2018

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

26
28
30

Corporate Information/Stock Information
ALSOK REPORT 2023

48
53
01

Introduction

ALSOK’s History of Value Creation
FY2023

Sohgo Security Services Co., Ltd. was founded on July 16, 1965,

Net Sales492.2 billion

and the company name embodies the spirit of its founder:“The leading security company needs to excel at all security services.”

Background to foundation Creating a Made in Japan security company
After retiring from the National Policy Agency and serving as the Deputy SecretaryGeneral on the organizing committee for the Olympic Games Tokyo 1964, Jun Murai
was asked by former Prime Minister Shigeru Yoshida: “You should create a uniquely
Japanese security company.” This marked the building blocks of a truly Made in Japansecurity company—where the safety of Japan was provided by Japanese people.

279.2 billion
248.3 billion

Former Prime Minister Shigeru Yoshida with founder Jun Murai and wife
(at Mr. Yoshida's residence in Oiso, Kanagawa Prefecture)

181.2 billion
120.1 billion
2002 Listed stock on the first sectionof the Tokyo Stock Exchange

Net Sales

40.1 billion

0.15 billion

0.7 billion

1966

’71

’76

1981

2003 Established the corporate
brand “ALSOK”

’86

1991

’96

2001

’03

’06

2011

’16

2021

’23

(FY)

Providing Better Services to More Customers
Real-time monitoring with video

Peace of mind for day-to-day life too

Increasing added value for electronic security

Expanded customer base, diversified services

Responding to advances in devices and developments in communication technologies

From “Protecting homes” to “Protecting lifestyles”

1967

Began providing electronic security services

At the time, sensors detected signals, and instruction were provided toon-site security staff

TodayVideo monitoring services

Identifying on-site situations with theuse of imaging sensors. These canalso be checked by customers via
their smartphones

1988

Began providing Home Security services

Expanded services on the back of increased awareness of crime prevention
and lifestyle changes

Today

Providing more than just crime prevention,with “safety and security” for all aspects of life

Ensuring safety and peace of mind for abroad range of lifestyles, including for theelderly and those living in condominiums, inline with the concept of security services for
all aspects of life

Responding to a super-aged society

For safety and security throughout Asia

Developed long-term care services businessthat only a security company can provide

Expanding services globally based on
security know-how cultivated in Japan

Providing reliable care services
2012

Full-scale entry into long-term care services

Began providing visitation-based care services in the Metropolitan Area

Today

Began operation of care services facilities
that only a security company can provide

Security is installed at nursing carefacilities, and the response capabilities
of a security company provide safety andpeace of mind to customers in normal
times as well as in times of disaster

Responding to mounting needs for safety and security around the world
1980

Began dispatching security response
personnel to diplomatic establishments abroad

Dispatched personnel to Japanese embassies and consulates around theworld (Middle East, Latin America, etc.)

Today

Developed diverse services for safety andsecurity throughout Asia

Established seven local subsidiaries mainly in Southeast Asia that is
experiencing significant growth, and began providing services there. Services
will continue to be provided going forward for both Japanese andnon-Japanese companies by meeting the specific needs of each region

Bangladesh
Vietnam

Evolved to “Visible Security”

Providing constant total support for customer business operations

Expanded business domains and customer base

“Manpower” × “state-of-the-art equipment”

Began providing and expanding general building management services

Responding to changes in society (labor shortages, shift to cashless systems)

Visualization of services using state-of-the-art equipment

Expanded cash-related services

1966

Began providing cash transportation services for financial institutions

Provided cash transportation security services forfinancial institutions

1965

Began providing stationed security services

Cultivated know-how by providing human security
personnel at major events like expos, summits andthe Olympics

Responding to the needs of building management and fire
protection closely connected to security
1966

Established presence as an outsourcer for cash-related services

Cash Deposit and Dispenser Machine On-Line System
ATM General Management Service
ALSOK Multi-QR Payment Solution

02

Today

Better quality and energy-saving efforts by utilizing state-of-the-art equipment

Achieving energy-saving and greater efficiency
through the use of state-of-the-art equipment
like robots and drones, and providing highquality services by fusing manpower and DX

India
MyanmarThailandBegan providing general building management services

Began general building management services closely connected to security services
Indonesia

Today
Today

China

Diverse range of services concerning building
management and fire protection

Sales of disaster prevention supplies, AEDs
and energy-saving products, in addition to
support for repair and renewal work ofbuilding facilities and inspection, fire
protection and cleaning services. Also
provides support for increasing the added
value of facilities

ALSOK REPORT 2023

03

Introduction

ALSOK’s History of Value Creation
FY2023

Sohgo Security Services Co., Ltd. was founded on July 16, 1965,

Net Sales492.2 billion

and the company name embodies the spirit of its founder:“The leading security company needs to excel at all security services.”

Background to foundation Creating a Made in Japan security company
After retiring from the National Policy Agency and serving as the Deputy SecretaryGeneral on the organizing committee for the Olympic Games Tokyo 1964, Jun Murai
was asked by former Prime Minister Shigeru Yoshida: “You should create a uniquely
Japanese security company.” This marked the building blocks of a truly Made in Japansecurity company—where the safety of Japan was provided by Japanese people.

279.2 billion
248.3 billion

Former Prime Minister Shigeru Yoshida with founder Jun Murai and wife
(at Mr. Yoshida's residence in Oiso, Kanagawa Prefecture)

181.2 billion
120.1 billion
2002 Listed stock on the first sectionof the Tokyo Stock Exchange

Net Sales

40.1 billion

0.15 billion

0.7 billion

1966

’71

’76

1981

2003 Established the corporate
brand “ALSOK”

’86

1991

’96

2001

’03

’06

2011

’16

2021

’23

(FY)

Providing Better Services to More Customers
Real-time monitoring with video

Peace of mind for day-to-day life too

Increasing added value for electronic security

Expanded customer base, diversified services

Responding to advances in devices and developments in communication technologies

From “Protecting homes” to “Protecting lifestyles”

1967

Began providing electronic security services

At the time, sensors detected signals, and instruction were provided toon-site security staff

TodayVideo monitoring services

Identifying on-site situations with theuse of imaging sensors. These canalso be checked by customers via
their smartphones

1988

Began providing Home Security services

Expanded services on the back of increased awareness of crime prevention
and lifestyle changes

Today

Providing more than just crime prevention,with “safety and security” for all aspects of life

Ensuring safety and peace of mind for abroad range of lifestyles, including for theelderly and those living in condominiums, inline with the concept of security services for
all aspects of life

Responding to a super-aged society

For safety and security throughout Asia

Developed long-term care services businessthat only a security company can provide

Expanding services globally based on
security know-how cultivated in Japan

Providing reliable care services
2012

Full-scale entry into long-term care services

Began providing visitation-based care services in the Metropolitan Area

Today

Began operation of care services facilities
that only a security company can provide

Security is installed at nursing carefacilities, and the response capabilities
of a security company provide safety andpeace of mind to customers in normal
times as well as in times of disaster

Responding to mounting needs for safety and security around the world
1980

Began dispatching security response
personnel to diplomatic establishments abroad

Dispatched personnel to Japanese embassies and consulates around theworld (Middle East, Latin America, etc.)

Today

Developed diverse services for safety andsecurity throughout Asia

Established seven local subsidiaries mainly in Southeast Asia that is
experiencing significant growth, and began providing services there. Services
will continue to be provided going forward for both Japanese andnon-Japanese companies by meeting the specific needs of each region

Bangladesh
Vietnam

Evolved to “Visible Security”

Providing constant total support for customer business operations

Expanded business domains and customer base

“Manpower” × “state-of-the-art equipment”

Began providing and expanding general building management services

Responding to changes in society (labor shortages, shift to cashless systems)

Visualization of services using state-of-the-art equipment

Expanded cash-related services

1966

Began providing cash transportation services for financial institutions

Provided cash transportation security services forfinancial institutions

1965

Began providing stationed security services

Cultivated know-how by providing human security
personnel at major events like expos, summits andthe Olympics

Responding to the needs of building management and fire
protection closely connected to security
1966

Established presence as an outsourcer for cash-related services

Cash Deposit and Dispenser Machine On-Line System
ATM General Management Service
ALSOK Multi-QR Payment Solution

02

Today

Better quality and energy-saving efforts by utilizing state-of-the-art equipment

Achieving energy-saving and greater efficiency
through the use of state-of-the-art equipment
like robots and drones, and providing highquality services by fusing manpower and DX

India
MyanmarThailandBegan providing general building management services

Began general building management services closely connected to security services
Indonesia

Today
Today

China

Diverse range of services concerning building
management and fire protection

Sales of disaster prevention supplies, AEDs
and energy-saving products, in addition to
support for repair and renewal work ofbuilding facilities and inspection, fire
protection and cleaning services. Also
provides support for increasing the added
value of facilities

ALSOK REPORT 2023

03

Introduction

Businesses, Products and Services from ALSOKAs a provider of services concerning the safety and security of society, the Group is working to provide newservices that combine various service functions such as security, equipment, and nursing care to meet the needs
for safety and security of customers and society given increasingly diversifying risks.

Main Products and Services●

Security Services
Electronic Security Services(4) General Property Management
and Fire Protection Services(2) Stationed Security Services(6) Overseas Business■ ALSOK-G7

Security system that incorporates live video monitoring as a standard feature
In the event of an IT equipment-related failure, guards rush to the scene to determine the cause and provide emergency response■ ALSOK IT Rescue■ HOME ALSOK Connect®

(7) Other
Solutions Business

The optimal multifunction system for ordinary homes, including both condominiums and detached houses
System with emergency reporting and telephone health consultation service functions for senior citizens added■ HOME ALSOK MIMAMORI SUPPORT®

Electronic Security
Department (P. 18)
HOME ALSOK Business
Department (P. 19)

Stationed Security Services■ Stationed Security

Security guards are stationed at facilities, and in case of emergency, we carry out patrols, conduct
monitoring, and provide facility/equipment management for crime and disaster prevention■ Temporary Security Flexibly responds to short-term security needs for international conferences, various events, etc.

Stationed Security
Department (P. 20)

Transportation Security Services■ Cash Deposit and Dispenser Machine On-Line System■ ATM General Management Service■ ALSOK Multi-QR Payment Solution(5) Long-term
Care Services●

Total solution for customer business operations combining store sales proceeds
management functionality with a transportation security network
Transportation Security
Total support for ATM operation and management, including
Department (P. 21)
replenishment and collection of ATM cash and ATM fault response
A cashless payment service that makes it possible to handle multiple payments on a single device

General Property Management and Fire Protection Services

Facility Management Department (P. 22)■ Facility Management■ AED

Repair and renewal work of building facilities, fire and disaster prevention work, facility management, cleaning management,
sanitation management, and telephone answering service, etc. Total support for building operation and management
Sale, rental, and management of AED equipment, and training in the use of AED equipment■ Disaster and Infection Prevention Products, Harmful Bird & Wildlife Control Services

Sales and management of disaster stockpiles, PCR inspections, and support for protecting agricultural crops, etc., from harm caused bybird and animal■ Comprehensive asbestos service Contracting for tasks concerning asbestos investigations●(1) Electronic
Security
Services(1) Electronic Security Services
Installation of alarm equipment and other sensors at
contracted stores or homes, and dispatch of security guards to
respond to any abnormal situations such as intrusions or fires.

(2) Stationed Security Services
Security guards are stationed at the contracted facility andaccess control, patrol, and monitoring are performed toprevent various accidents and respond to emergencies.
Security services are also provided for various events such as
international conferences.

(3) Transportation Security Services
Our Transportation Security Services business provides
transport of valuables such as cash and securities to locations
designated by contract via cash transport vehicles. We provide
comprehensive solutions for cash-related operations via
services like our “Cash Deposit and Dispenser Machine On-Line
System,” “ATM General Management Service” and “ALSOKMulti-QR Payment Solution.”

Create care plans, home-visit long-term care/nursing, day-care services, etc.
Fee-based long-term care facilities and group homes
Loans and sales of equipment for long-term care covered by public aid, home remodeling, massage therapy, etc.

■ Resident Services■ Other Services●●(6) Overseas Business
Established seven local subsidiaries mainly in Southeast Asia. We are expanding our business domain
not only to provide security consulting, resident security services, and machine security services, butalso facility management such as disaster prevention and cleaning.

Electronic security, Stationed security

Other Solutions Businesses

ALSOK PC management service, Network monitoring service, website tampering detection service
Safety confirmation during and after natural disasters, and health management tools for use during epidemics, etc.
■ REBORG®-Z Security robot for facility patrolling and monitoring■ Various Drone Services Inspections and surveys of various facilities like solar power panels, bridges and building exteriors■ ALSOK Safety Confirmation Service

Business Diversification and Solid Customer Base
Approximately 74.4% of net sales account for Security Services (electronic security, stationed security, transportation security), with
Non-security Services (general property management and fire protection services, long-term care services etc.) account for around
25.5%.
Share by Service Type

Share by Client Type

1.0

46.6

(7) Other Solutions Businesses

23.4

16.1

35.7
20

59.1
1.1

25.1
40

13.6
60

14.8
80

Fiscal year ended March 31, 2013

12.9

Fiscal year ended March 31, 2023

Financial corporations
PublicBusiness corporations
Individual Users

Electronic Security Services
Stationed Security Services
Transportation Security Services
General Property Management and Fire Protection Services
Long-term Care Services
Other
Fiscal year ended March 31, 2013

Provision of the “ALSOK Safety Confirmation Service” for checking the safety of employees in the eventof natural disasters/calamities, various information security solutions, and services using robots anddrones.

Facility management, AED sales, etc.

■ Information Security Services

Total support business covering building and condominium maintenance, operation and management,
including repair and renewal of various building facilities, fire and disaster prevention, facility
management, cleaning and sanitation management, plumbing installation and electrical installation.
It also sells disaster prevention supplies, infectious disease control supplies, and AEDs.

Provision of a wide range of services from home-based nursing services such as creating care plans andday services, to facility-based care services such as pay-for-care homes for the elderly with nursing careand group homes. We sell and rent equipment for long-term care covered by public aid, as well as
provide home-visit medical massage services.

International Affairs Department (P. 24)■ General Property Management and Fire Protection Services(4) General Property Management and Fire Protection Services(5) Long-term Care Services

Overseas Business■ Security Services

004Long-Term Care Business Department (P. 23)■ In-home care services(3) Transportation
Security
Services

Security Services

Long-term Care Services

28.5

Fiscal year ended March 31, 2023

9.6

60.9
100 (%)

5.4 7.0

0

20

17.5
40

60

14.3
80

7.2
100 (%)ALSOK REPORT 2023

05

Introduction

Businesses, Products and Services from ALSOKAs a provider of services concerning the safety and security of society, the Group is working to provide newservices that combine various service functions such as security, equipment, and nursing care to meet the needs
for safety and security of customers and society given increasingly diversifying risks.

Main Products and Services●

Security Services
Electronic Security Services(4) General Property Management
and Fire Protection Services(2) Stationed Security Services(6) Overseas Business■ ALSOK-G7

Security system that incorporates live video monitoring as a standard feature
In the event of an IT equipment-related failure, guards rush to the scene to determine the cause and provide emergency response■ ALSOK IT Rescue■ HOME ALSOK Connect®

(7) Other
Solutions Business

The optimal multifunction system for ordinary homes, including both condominiums and detached houses
System with emergency reporting and telephone health consultation service functions for senior citizens added■ HOME ALSOK MIMAMORI SUPPORT®

Electronic Security
Department (P. 18)
HOME ALSOK Business
Department (P. 19)

Stationed Security Services■ Stationed Security

Security guards are stationed at facilities, and in case of emergency, we carry out patrols, conduct
monitoring, and provide facility/equipment management for crime and disaster prevention■ Temporary Security Flexibly responds to short-term security needs for international conferences, various events, etc.

Stationed Security
Department (P. 20)

Transportation Security Services■ Cash Deposit and Dispenser Machine On-Line System■ ATM General Management Service■ ALSOK Multi-QR Payment Solution(5) Long-term
Care Services●

Total solution for customer business operations combining store sales proceeds
management functionality with a transportation security network
Transportation Security
Total support for ATM operation and management, including
Department (P. 21)
replenishment and collection of ATM cash and ATM fault response
A cashless payment service that makes it possible to handle multiple payments on a single device

General Property Management and Fire Protection Services

Facility Management Department (P. 22)■ Facility Management■ AED

Repair and renewal work of building facilities, fire and disaster prevention work, facility management, cleaning management,
sanitation management, and telephone answering service, etc. Total support for building operation and management
Sale, rental, and management of AED equipment, and training in the use of AED equipment■ Disaster and Infection Prevention Products, Harmful Bird & Wildlife Control Services

Sales and management of disaster stockpiles, PCR inspections, and support for protecting agricultural crops, etc., from harm caused bybird and animal■ Comprehensive asbestos service Contracting for tasks concerning asbestos investigations●(1) Electronic
Security
Services(1) Electronic Security Services
Installation of alarm equipment and other sensors at
contracted stores or homes, and dispatch of security guards to
respond to any abnormal situations such as intrusions or fires.

(2) Stationed Security Services
Security guards are stationed at the contracted facility andaccess control, patrol, and monitoring are performed toprevent various accidents and respond to emergencies.
Security services are also provided for various events such as
international conferences.

(3) Transportation Security Services
Our Transportation Security Services business provides
transport of valuables such as cash and securities to locations
designated by contract via cash transport vehicles. We provide
comprehensive solutions for cash-related operations via
services like our “Cash Deposit and Dispenser Machine On-Line
System,” “ATM General Management Service” and “ALSOKMulti-QR Payment Solution.”

Create care plans, home-visit long-term care/nursing, day-care services, etc.
Fee-based long-term care facilities and group homes
Loans and sales of equipment for long-term care covered by public aid, home remodeling, massage therapy, etc.

■ Resident Services■ Other Services●●(6) Overseas Business
Established seven local subsidiaries mainly in Southeast Asia. We are expanding our business domain
not only to provide security consulting, resident security services, and machine security services, butalso facility management such as disaster prevention and cleaning.

Electronic security, Stationed security

Other Solutions Businesses

ALSOK PC management service, Network monitoring service, website tampering detection service
Safety confirmation during and after natural disasters, and health management tools for use during epidemics, etc.
■ REBORG®-Z Security robot for facility patrolling and monitoring■ Various Drone Services Inspections and surveys of various facilities like solar power panels, bridges and building exteriors■ ALSOK Safety Confirmation Service

Business Diversification and Solid Customer Base
Approximately 74.4% of net sales account for Security Services (electronic security, stationed security, transportation security), with
Non-security Services (general property management and fire protection services, long-term care services etc.) account for around
25.5%.
Share by Service Type

Share by Client Type

1.0

46.6

(7) Other Solutions Businesses

23.4

16.1

35.7
20

59.1
1.1

25.1
40

13.6
60

14.8
80

Fiscal year ended March 31, 2013

12.9

Fiscal year ended March 31, 2023

Financial corporations
PublicBusiness corporations
Individual Users

Electronic Security Services
Stationed Security Services
Transportation Security Services
General Property Management and Fire Protection Services
Long-term Care Services
Other
Fiscal year ended March 31, 2013

Provision of the “ALSOK Safety Confirmation Service” for checking the safety of employees in the eventof natural disasters/calamities, various information security solutions, and services using robots anddrones.

Facility management, AED sales, etc.

■ Information Security Services

Total support business covering building and condominium maintenance, operation and management,
including repair and renewal of various building facilities, fire and disaster prevention, facility
management, cleaning and sanitation management, plumbing installation and electrical installation.
It also sells disaster prevention supplies, infectious disease control supplies, and AEDs.

Provision of a wide range of services from home-based nursing services such as creating care plans andday services, to facility-based care services such as pay-for-care homes for the elderly with nursing careand group homes. We sell and rent equipment for long-term care covered by public aid, as well as
provide home-visit medical massage services.

International Affairs Department (P. 24)■ General Property Management and Fire Protection Services(4) General Property Management and Fire Protection Services(5) Long-term Care Services

Overseas Business■ Security Services

004Long-Term Care Business Department (P. 23)■ In-home care services(3) Transportation
Security
Services

Security Services

Long-term Care Services

28.5

Fiscal year ended March 31, 2023

9.6

60.9
100 (%)

5.4 7.0

0

20

17.5
40

60

14.3
80

7.2
100 (%)ALSOK REPORT 2023

05

Introduction

Financial and Non-Financial Highlights¥492.2 billion
billionNet Sales(billions of yen)
443.5

460.1

469.9

¥23.9 billion
billionProfit Attributable to
Owners of Parent(billions of yen)

489.0

28.9
25.0

24.1

22.2

E 86,850

CO2 Emissions (Group)

YOY

16,731 kl
Electricity Consumption (Group) 92,464 MWh
Fuel Usage (Group)

t-CO2

2.0% increase*1

CO2 Emissions per Sales Unit* (Group)

Environmentally friendly vehicles*2

Electric motorcycle

0.176 t-CO / ¥ million

957

49

2

2019/32020/32021/32022/32023/3¥39.2 billion
billionOrdinary Income(billions of yen)

2019/32020/32021/32022/32023/3

YOY¥86

Dividend

1.14% increase

YOY

*1

*1 Due to increase in Group companies during the fiscal year

*2 Hybrids, PHV/PHEVs, electric vehicles, fuel cell vehicles

82

44.7
39.2

S

72

70

66

33.8

2020/3

ROE / Net Assets
9.9

2021/32022/32023/3¥343.8 billion
9.6

2020/32021/3(consolidated)

Number of Female
Employees

10.0

257.0

270.4

2019/32020/3

327.5

481.4

9.3

7.8%

Number of Employees
Who Have CompletedFirst-Aid Training

9.2

8.6

Cumulative
Total

488.2

2021/32022/32023/3¥16.4 billion
billion(billions of yen)

2019/32020/32021/32022/32023/3¥17.9 billion
billionDepreciation andAmortization

16.2
14.0

2020/315.0

13.6

2021/32022/32023/3

2019/314.9

2020/315.82021/32022/32023/3

Approx.

7,300(started in 2004)

G

Directors’ Rateof Attendance atBoard Meetings

Number of Directors andAudit & Supervisory
Board Members

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

15

one female Director
one female Audit &Supervisory Board Member

100%)

Number of Group Companies That Number of Group Companies
Have ISO 27001 (ISMS) Certification That Have ISO 9001 Certification

Number of Group Companies
That Have ISO 14001 Certification

Number of Group Companies That
Used the Internal Reporting System

Companies

Companies

Companies

20(including main company)

06

Number of Residents inLong-Term Care Facilities

1,736,000 Approx. 24,000

Directors 11(of whom 4 are outside Directors)

16.8

9.7%

Number of Users of Long-TermCare and Other Services(billions of yen)

15.8

Proportion of Women in
Management Positions(consolidated)

YOY 11.5% increase

Cumulative Total

23,292

7.8%

6,158

Number of Participants in ALSOKANSHIN KYOSHITSU® Crime
Prevention Classes(including both basic and advanced training)

Capital Investments

2019/3

428.7

410.1

2023/3

Total Assets (billions of yen)

8.4
304.4

2022/3¥516.6 billion

ROA / Total Assets
ROA (%)Net Assets (billions of yen)
10.1

2019/339,039Number of
Employees(consolidated)

ROE (%)

Newly introduced

(yen)

38.8

2019/3

54.1% increase

65

27001

Companies(including main company)

9001

74

(including main company)

14001

75

ALSOK REPORT 2023

07

Introduction

Financial and Non-Financial Highlights¥492.2 billion
billionNet Sales(billions of yen)
443.5

460.1

469.9

¥23.9 billion
billionProfit Attributable to
Owners of Parent(billions of yen)

489.0

28.9
25.0

24.1

22.2

E 86,850

CO2 Emissions (Group)

YOY

16,731 kl
Electricity Consumption (Group) 92,464 MWh
Fuel Usage (Group)

t-CO2

2.0% increase*1

CO2 Emissions per Sales Unit* (Group)

Environmentally friendly vehicles*2

Electric motorcycle

0.176 t-CO / ¥ million

957

49

2

2019/32020/32021/32022/32023/3¥39.2 billion
billionOrdinary Income(billions of yen)

2019/32020/32021/32022/32023/3

YOY¥86

Dividend

1.14% increase

YOY

*1

*1 Due to increase in Group companies during the fiscal year

*2 Hybrids, PHV/PHEVs, electric vehicles, fuel cell vehicles

82

44.7
39.2

S

72

70

66

33.8

2020/3

ROE / Net Assets
9.9

2021/32022/32023/3¥343.8 billion
9.6

2020/32021/3(consolidated)

Number of Female
Employees

10.0

257.0

270.4

2019/32020/3

327.5

481.4

9.3

7.8%

Number of Employees
Who Have CompletedFirst-Aid Training

9.2

8.6

Cumulative
Total

488.2

2021/32022/32023/3¥16.4 billion
billion(billions of yen)

2019/32020/32021/32022/32023/3¥17.9 billion
billionDepreciation andAmortization

16.2
14.0

2020/315.0

13.6

2021/32022/32023/3

2019/314.9

2020/315.82021/32022/32023/3

Approx.

7,300(started in 2004)

G

Directors’ Rateof Attendance atBoard Meetings

Number of Directors andAudit & Supervisory
Board Members

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

15

one female Director
one female Audit &Supervisory Board Member

100%)

Number of Group Companies That Number of Group Companies
Have ISO 27001 (ISMS) Certification That Have ISO 9001 Certification

Number of Group Companies
That Have ISO 14001 Certification

Number of Group Companies That
Used the Internal Reporting System

Companies

Companies

Companies

20(including main company)

06

Number of Residents inLong-Term Care Facilities

1,736,000 Approx. 24,000

Directors 11(of whom 4 are outside Directors)

16.8

9.7%

Number of Users of Long-TermCare and Other Services(billions of yen)

15.8

Proportion of Women in
Management Positions(consolidated)

YOY 11.5% increase

Cumulative Total

23,292

7.8%

6,158

Number of Participants in ALSOKANSHIN KYOSHITSU® Crime
Prevention Classes(including both basic and advanced training)

Capital Investments

2019/3

428.7

410.1

2023/3

Total Assets (billions of yen)

8.4
304.4

2022/3¥516.6 billion

ROA / Total Assets
ROA (%)Net Assets (billions of yen)
10.1

2019/339,039Number of
Employees(consolidated)

ROE (%)

Newly introduced

(yen)

38.8

2019/3

54.1% increase

65

27001

Companies(including main company)

9001

74

(including main company)

14001

75

ALSOK REPORT 2023

07

Message from Top Management

Message from Group CEO
resilient “Integrated Safety and Security Solutions Provider.”While progress of the Medium-Term Management Plan has
been delayed due to the response required during COVID-19,
we will be focusing on the state of recovery in performancefrom May 2023 and beyond, with the view to making up forthe previous delays.
A closer look at the present state of business indicates amarked uptick in the movement of people. More recently, we
have seen new forms of crime emerging that had been rarein the past such as serial robberies, and with people sensing
a deterioration in security, I feel that there is growing demand
for security services. On the other hand, securing a capable
workforce is likely to become increasingly difficult. Services
provided by ALSOK always remain work that is focused on
people. We will continue making an effort to reduce workloadby rolling out DX as fast as possible.

a sense of urgency. More than just security operations, I thinkthat harnessing ALSOK’s unique capabilities*2 to expand into
new domains will be the key to taking ALSOK to new heights.
The security operations that ALSOK has built on andexpanded thus far can be considered as services that
underpin social infrastructure in a behind-the-scenes kind ofway, by preventing crime or potential risks that pose a threat
to safety. These security services are the mainstay of ALSOK,
and we will continue to develop and advance operations inthese areas. The risks that are present throughout ourday-to-day lives are increasing in complexity and diversity, likethe myriad disasters caused by climate change, or thegrowing number of elderly people living alone andsingle-person households as the birthrates decline and thesocial structure continues to change. In light of thesecircumstances, I feel that the “on-site capabilities” and “agility”
we have developed through our security services could be
harnessed in fields outside of crime prevention and reducing
security risks. The number customers using our “HOMEALSOK MIMAMORI SUPPORT®” service, where personnel
rush to aid elderly people if they feel unwell, has grown inrecent years, but this service was not actually created for the
purpose of crime prevention. I hope to continue tapping into
fields where ALSOK can maximize its potential, andcontribute to society as a company capable of preventing andcontrolling various types of risks present in the day-to-day
lives of people and their social activities.

ALSOK’s significance and way forward

Tsuyoshi Murai
Representative Director, Group CEO
CTO (Chief Technology Officer)

ALSOK employees have a strong sense of mission backed by
the spirit of our company’s founding, where they engage inrisks head-on and remain on-site until the very end. I believethat this corporate culture that has been cultivated throughout
the long history of our company is the greatest strength of
ALSOK. We will continue to cherish this unique corporate
culture and fine-tune it even more to further cement ouridentity. ALSOK also has the agility to rush to sites quickly with
*2 Refers to the organizational capability of the company as a whole

Reforming the security business model withthe aim of becoming a corporate group that
protects lifestyles and society
Changes in the present businessenvironment and the state ofmanagement
Numerous challenges presented themselves over the past
year, including the increasing spread of COVID-19 infections,rising prices of raw materials due to high resource costs anda weak yen, and supply shortages of semiconductors. With
COVID-19 downgraded to a “Category V infectious disease”*1
in May 2023, various types of events showed signs ofresuming in so many places and people began to startmoving around again—all of which led to demand for security
at locations like airports and event sites. As the risk of
COVID-19 spread worldwide over the past three years, eachand every employee remained committed to fulfilling theirduties at sites with the strong sense of mission towardkeeping society safe—in light of this, I realized again why

ALSOK operations are performed by so-called “essential
workers.”
We had anticipated a recovery in demand for security
services in concert with the Japanese economy following theend of COVID-19. When that happened, instead of simply
returning to the same level of operations as three years prior,
we had steadily been making preparations as we deemed it
would be essential to create a resilient business structure
geared for future growth. In line with the four basic policies
outlined in “Grand Design 2025,” our Medium-Term
Management Plan that is in its third year—the “Enhancementof Response Capacity for Diverse Safety and Security Needsof Society,” “Digitization and Utilization of Data,” “Establishinga Work Environment Where Employees Play an Active Role,”and “Strengthen the Efforts of Sustainability,” we madeprogress in each area, including utilizing DX and updatinginternal systems and structures as part of initiatives forreforming our security business model and becoming a

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

1 Enhancement of response
capacity for diverse safety andsecurity 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■ Utilization of Data

3 Establishing a work environment
where employees play an active role

• Enhancement of communications with customers • Efficiency and manpower savings of operations• Complement of functions by digital technology• Analysis of collected data • Data cooperation with external organizations■ Diversifying Human Resources• Recruit of diverse human resource• Provision of diverse work styles• Capability development

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

Investment Plan (based on cash flow)

Performance (FY2023)

Targets (FY2026)

Consolidated net sales ¥492.2 billion

Approx. ¥650.0 billion

Payout ratio of 30% as a target
to maintain a stable dividend

Consolidated ordinary income ¥39.2 billion

Approx. ¥65.0 billion

Future Targets

Consolidated ordinary income to sales 8.0%

More than 10%

ROE

More than 10%

7.8%

Net sales: Approx. ¥1 trillion
Income: Approx. ¥100 billion

Items

FY2022–FY2026

Research and development,
digital-related investments, etc.

¥70.0 billion

M&A, etc.

¥50.0 billion

FY2022–FY2026 increasein cash¥110.0 billion

For detailed data on the Medium-Term Management Plan (GD2025), please visit our website.
https://www.alsok.co.jp/ir/management/plan.html*1 One of the Class 5 infectious diseases defined under the Act on the Prevention of Infectious Diseases and Medical Care for Patients with Infectious Diseases, with the lowest level of overall risk basedon factors such as infectiousness and severity

08

ALSOK REPORT 2023

09

Message from Top Management

Message from Group CEO
resilient “Integrated Safety and Security Solutions Provider.”While progress of the Medium-Term Management Plan has
been delayed due to the response required during COVID-19,
we will be focusing on the state of recovery in performancefrom May 2023 and beyond, with the view to making up forthe previous delays.
A closer look at the present state of business indicates amarked uptick in the movement of people. More recently, we
have seen new forms of crime emerging that had been rarein the past such as serial robberies, and with people sensing
a deterioration in security, I feel that there is growing demand
for security services. On the other hand, securing a capable
workforce is likely to become increasingly difficult. Services
provided by ALSOK always remain work that is focused on
people. We will continue making an effort to reduce workloadby rolling out DX as fast as possible.

a sense of urgency. More than just security operations, I thinkthat harnessing ALSOK’s unique capabilities*2 to expand into
new domains will be the key to taking ALSOK to new heights.
The security operations that ALSOK has built on andexpanded thus far can be considered as services that
underpin social infrastructure in a behind-the-scenes kind ofway, by preventing crime or potential risks that pose a threat
to safety. These security services are the mainstay of ALSOK,
and we will continue to develop and advance operations inthese areas. The risks that are present throughout ourday-to-day lives are increasing in complexity and diversity, likethe myriad disasters caused by climate change, or thegrowing number of elderly people living alone andsingle-person households as the birthrates decline and thesocial structure continues to change. In light of thesecircumstances, I feel that the “on-site capabilities” and “agility”
we have developed through our security services could be
harnessed in fields outside of crime prevention and reducing
security risks. The number customers using our “HOMEALSOK MIMAMORI SUPPORT®” service, where personnel
rush to aid elderly people if they feel unwell, has grown inrecent years, but this service was not actually created for the
purpose of crime prevention. I hope to continue tapping into
fields where ALSOK can maximize its potential, andcontribute to society as a company capable of preventing andcontrolling various types of risks present in the day-to-day
lives of people and their social activities.

ALSOK’s significance and way forward

Tsuyoshi Murai
Representative Director, Group CEO
CTO (Chief Technology Officer)

ALSOK employees have a strong sense of mission backed by
the spirit of our company’s founding, where they engage inrisks head-on and remain on-site until the very end. I believethat this corporate culture that has been cultivated throughout
the long history of our company is the greatest strength of
ALSOK. We will continue to cherish this unique corporate
culture and fine-tune it even more to further cement ouridentity. ALSOK also has the agility to rush to sites quickly with
*2 Refers to the organizational capability of the company as a whole

Reforming the security business model withthe aim of becoming a corporate group that
protects lifestyles and society
Changes in the present businessenvironment and the state ofmanagement
Numerous challenges presented themselves over the past
year, including the increasing spread of COVID-19 infections,rising prices of raw materials due to high resource costs anda weak yen, and supply shortages of semiconductors. With
COVID-19 downgraded to a “Category V infectious disease”*1
in May 2023, various types of events showed signs ofresuming in so many places and people began to startmoving around again—all of which led to demand for security
at locations like airports and event sites. As the risk of
COVID-19 spread worldwide over the past three years, eachand every employee remained committed to fulfilling theirduties at sites with the strong sense of mission towardkeeping society safe—in light of this, I realized again why

ALSOK operations are performed by so-called “essential
workers.”
We had anticipated a recovery in demand for security
services in concert with the Japanese economy following theend of COVID-19. When that happened, instead of simply
returning to the same level of operations as three years prior,
we had steadily been making preparations as we deemed it
would be essential to create a resilient business structure
geared for future growth. In line with the four basic policies
outlined in “Grand Design 2025,” our Medium-Term
Management Plan that is in its third year—the “Enhancementof Response Capacity for Diverse Safety and Security Needsof Society,” “Digitization and Utilization of Data,” “Establishinga Work Environment Where Employees Play an Active Role,”and “Strengthen the Efforts of Sustainability,” we madeprogress in each area, including utilizing DX and updatinginternal systems and structures as part of initiatives forreforming our security business model and becoming a

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

1 Enhancement of response
capacity for diverse safety andsecurity 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■ Utilization of Data

3 Establishing a work environment
where employees play an active role

• Enhancement of communications with customers • Efficiency and manpower savings of operations• Complement of functions by digital technology• Analysis of collected data • Data cooperation with external organizations■ Diversifying Human Resources• Recruit of diverse human resource• Provision of diverse work styles• Capability development

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

Investment Plan (based on cash flow)

Performance (FY2023)

Targets (FY2026)

Consolidated net sales ¥492.2 billion

Approx. ¥650.0 billion

Payout ratio of 30% as a target
to maintain a stable dividend

Consolidated ordinary income ¥39.2 billion

Approx. ¥65.0 billion

Future Targets

Consolidated ordinary income to sales 8.0%

More than 10%

ROE

More than 10%

7.8%

Net sales: Approx. ¥1 trillion
Income: Approx. ¥100 billion

Items

FY2022–FY2026

Research and development,
digital-related investments, etc.

¥70.0 billion

M&A, etc.

¥50.0 billion

FY2022–FY2026 increasein cash¥110.0 billion

For detailed data on the Medium-Term Management Plan (GD2025), please visit our website.
https://www.alsok.co.jp/ir/management/plan.html*1 One of the Class 5 infectious diseases defined under the Act on the Prevention of Infectious Diseases and Medical Care for Patients with Infectious Diseases, with the lowest level of overall risk basedon factors such as infectiousness and severity

08

ALSOK REPORT 2023

09

Message from Top Management

Message from Group COO

Message from Group CEO

Toward sustainable
management and achievinga sustainable society
Given the large number of stationed security companies thatprovide traffic control and security at events, as well as covercertain services in specific regions, I think the security industry
is one that will require various ideas for utilizing DX in order toachieve economic effects. In contrast, ALSOK’s main line ofbusiness is with providing electronic security services aroundthe country by developing large-scale systems, and this fact
makes it relatively easy for us to incorporate DX. Ouroperations that involve predicting and reducing risks can to acertain extent be classified into patterns drawing on pastexperience, so DX can be leveraged to allocate personnel
with the required skills and experience to provide a more
uniform response to various situations. Services that could
not be visualized in the past can be expressed in figures andtext using DX, making conditions easier to interpret.
In the services industry, it is difficult to maintain a uniform
level as services are provided by human workers, and even if ahigh-quality service is provided, visualizing the fruits andhaving customers understand them also remains a challenge.
In this sense, I think DX will be required in the services industry
in a different way to manufacturers and other companies in the
manufacturing industry.
Securing a capable workforce is becoming more difficult by
the year—and this situation is common throughout any
industry. While “people” are the focus of our work, I think it will
be particularly important to increase the share of roles that DX
and systems play in our operations.
Training of the next-generation of personnel in charge ofmanagement will be essential over the long-term span in order
to expand the business domains and reform the security
business model that I outlined earlier. Fostering humanresources with an understanding of ALSOK’s uniquecorporate culture and capable of forecasting future changes insociety will be crucial for advancing sustainable management.
We will be developing an extensive range of options in order tosecure human resources with broad perspectives and ample
experience. An example to illustrate this is that will warmly
welcome back staff who previously left ALSOK but seek toreturn with a greater skillset. We are also focusing efforts onstrengthening our governance system essential for sustainablegrowth, and in February 2023 we established a Nomination
and Remuneration Committee as a voluntary advisory body to
the Board of Directors. Our Board of Directors is a place
where Directors well-versed in ALSOK’s corporate culture andExternal Directors with a wealth of knowledge can discussmatters in a frank and open manner—I think this has
contributed greatly to achieving sound growth and reducing
business risks.
When looking at our how we contribute to the developmentof a sustainable society, I feel that the majority ALSOK’s
businesses are generally concerning resolving social issues.
As part of our management efforts, we have also incorporated
a host of measures toward contributing to a sustainable
society. Reducing CO2 emissions is one area that is essential
for tackling global warming, but an example highlighting ourefforts include reducing the amount of CO2 emissions
throughout the entire supply chain, including those that fallunder category called the Scope3. We recognize that a large
portion of ALSOK’s Scope3 emissions are for the
procurement of equipment concerning electronic security, so
in August 2022, we actually constructed a new repair centerand expanded the floor area of existing facilities to create aframework for properly reusing and recycling equipment. In
addition to these initiatives, I feel that it will be vital toincorporate new guidelines for achieving a sustainable society,like sustainability standards set forth by ISSB*3.

Message to Stakeholders
Listening carefully to valuable feedback received by engaging
in dialogue with shareholders and ensuring management is run
properly is something that I recognize is extremely important
for responding to the trust placed in us by our shareholders.
Distribution of profits generated by ALSOK will bewell-balanced between shareholder returns, employeecompensation and strategic investments aimed at future
growth. The balance of profit distribution will be carefully
determined based on feedback from employees andstakeholders, with a mind to reforming our current businessportfolio and making sure that it is even more resilient.
Looking ahead, ALSOK will be reforming its security
business model beyond just the security business by
predicting and reducing a diverse range of risks present in the
day-to-day lives of people and their social activities, with theaim of becoming a corporate group that protects society. I ask
for your continued understanding and support with reforms to
the future of ALSOK.

Ikuji Kayaki
Representative Director, Group COO

Focusing on “dialogue andempathy” to expand businessfurther
Review of the past year
It has been more than a year since ALSOK commenced its
new management structure from June 2022 that Group CEO
Murai and I formulated together. We embarked right in the
midst of the storm that was the COVID-19 pandemic andhave been battling various head winds throughout theyear—with rising costs of raw materials required for
manufacturing the equipment used for electronic security,and supply chain interruptions caused by semiconductor
shortages to name a few. We found it particularly toughproperly allocating security guards deemed “essential
workers” who needed to be on call in a consistent manner at
the height of the pandemic. The backup plan that we hadcreated in advance as our business continuity plan (BCP)
covered this aspect as intended, and I think the smooth

mutual coordination between various sites was a big factor
behind this. Despite the tough conditions required at eachsite, I really think ALSOK employees put in their best effort
performing their duties at their assigned sites.
While demand in the security and facility managementbusinesses is slowly recovering, we had to revise ourbusiness forecasts for January 2023 net sales and profit due
to the effects of rising costs brought on by higher prices andthe pandemic. We did achieve our 13th consecutive year ofincreased sales in the results for Fiscal Year Ended March 31,
2023, but profits decreased from the previous year as thesehigher figures were not enough to offset the increase insystem-related expenses. A closer look at the present
business performance shows signs of recovery for both net
sales and profits, and we will continue putting in the effort toensure a thorough recovery in performance going forward.

*3 Refers to the International Sustainability Standards Board established in November 2021 by
the International Financial Reporting Standards (IFRS) Foundation

10

ALSOK REPORT 2023

11

Message from Top Management

Message from Group COO

Message from Group CEO

Toward sustainable
management and achievinga sustainable society
Given the large number of stationed security companies thatprovide traffic control and security at events, as well as covercertain services in specific regions, I think the security industry
is one that will require various ideas for utilizing DX in order toachieve economic effects. In contrast, ALSOK’s main line ofbusiness is with providing electronic security services aroundthe country by developing large-scale systems, and this fact
makes it relatively easy for us to incorporate DX. Ouroperations that involve predicting and reducing risks can to acertain extent be classified into patterns drawing on pastexperience, so DX can be leveraged to allocate personnel
with the required skills and experience to provide a more
uniform response to various situations. Services that could
not be visualized in the past can be expressed in figures andtext using DX, making conditions easier to interpret.
In the services industry, it is difficult to maintain a uniform
level as services are provided by human workers, and even if ahigh-quality service is provided, visualizing the fruits andhaving customers understand them also remains a challenge.
In this sense, I think DX will be required in the services industry
in a different way to manufacturers and other companies in the
manufacturing industry.
Securing a capable workforce is becoming more difficult by
the year—and this situation is common throughout any
industry. While “people” are the focus of our work, I think it will
be particularly important to increase the share of roles that DX
and systems play in our operations.
Training of the next-generation of personnel in charge ofmanagement will be essential over the long-term span in order
to expand the business domains and reform the security
business model that I outlined earlier. Fostering humanresources with an understanding of ALSOK’s uniquecorporate culture and capable of forecasting future changes insociety will be crucial for advancing sustainable management.
We will be developing an extensive range of options in order tosecure human resources with broad perspectives and ample
experience. An example to illustrate this is that will warmly
welcome back staff who previously left ALSOK but seek toreturn with a greater skillset. We are also focusing efforts onstrengthening our governance system essential for sustainablegrowth, and in February 2023 we established a Nomination
and Remuneration Committee as a voluntary advisory body to
the Board of Directors. Our Board of Directors is a place
where Directors well-versed in ALSOK’s corporate culture andExternal Directors with a wealth of knowledge can discussmatters in a frank and open manner—I think this has
contributed greatly to achieving sound growth and reducing
business risks.
When looking at our how we contribute to the developmentof a sustainable society, I feel that the majority ALSOK’s
businesses are generally concerning resolving social issues.
As part of our management efforts, we have also incorporated
a host of measures toward contributing to a sustainable
society. Reducing CO2 emissions is one area that is essential
for tackling global warming, but an example highlighting ourefforts include reducing the amount of CO2 emissions
throughout the entire supply chain, including those that fallunder category called the Scope3. We recognize that a large
portion of ALSOK’s Scope3 emissions are for the
procurement of equipment concerning electronic security, so
in August 2022, we actually constructed a new repair centerand expanded the floor area of existing facilities to create aframework for properly reusing and recycling equipment. In
addition to these initiatives, I feel that it will be vital toincorporate new guidelines for achieving a sustainable society,like sustainability standards set forth by ISSB*3.

Message to Stakeholders
Listening carefully to valuable feedback received by engaging
in dialogue with shareholders and ensuring management is run
properly is something that I recognize is extremely important
for responding to the trust placed in us by our shareholders.
Distribution of profits generated by ALSOK will bewell-balanced between shareholder returns, employeecompensation and strategic investments aimed at future
growth. The balance of profit distribution will be carefully
determined based on feedback from employees andstakeholders, with a mind to reforming our current businessportfolio and making sure that it is even more resilient.
Looking ahead, ALSOK will be reforming its security
business model beyond just the security business by
predicting and reducing a diverse range of risks present in the
day-to-day lives of people and their social activities, with theaim of becoming a corporate group that protects society. I ask
for your continued understanding and support with reforms to
the future of ALSOK.

Ikuji Kayaki
Representative Director, Group COO

Focusing on “dialogue andempathy” to expand businessfurther
Review of the past year
It has been more than a year since ALSOK commenced its
new management structure from June 2022 that Group CEO
Murai and I formulated together. We embarked right in the
midst of the storm that was the COVID-19 pandemic andhave been battling various head winds throughout theyear—with rising costs of raw materials required for
manufacturing the equipment used for electronic security,and supply chain interruptions caused by semiconductor
shortages to name a few. We found it particularly toughproperly allocating security guards deemed “essential
workers” who needed to be on call in a consistent manner at
the height of the pandemic. The backup plan that we hadcreated in advance as our business continuity plan (BCP)
covered this aspect as intended, and I think the smooth

mutual coordination between various sites was a big factor
behind this. Despite the tough conditions required at eachsite, I really think ALSOK employees put in their best effort
performing their duties at their assigned sites.
While demand in the security and facility managementbusinesses is slowly recovering, we had to revise ourbusiness forecasts for January 2023 net sales and profit due
to the effects of rising costs brought on by higher prices andthe pandemic. We did achieve our 13th consecutive year ofincreased sales in the results for Fiscal Year Ended March 31,
2023, but profits decreased from the previous year as thesehigher figures were not enough to offset the increase insystem-related expenses. A closer look at the present
business performance shows signs of recovery for both net
sales and profits, and we will continue putting in the effort toensure a thorough recovery in performance going forward.

*3 Refers to the International Sustainability Standards Board established in November 2021 by
the International Financial Reporting Standards (IFRS) Foundation

10

ALSOK REPORT 2023

11

Message from Group COO

Initiatives aimed at expanding
businesses further
With the COVID-19 pandemic winding down and the businessenvironment showing signs of recovery, moves have alreadystarted for developing a system aimed at further businessgrowth and expansion of new businesses.
From April 2023, ALSOK shifted to a structure of sevenbusiness divisions.*1 I believe that this type of businessstructure will make it easier to identify needs within eachmarket earlier, thereby allowing decisions to be made quicker,
leading to faster action being taken. We are also planning todevelop training programs suited to the characteristics of eachbusiness division, and focus on cultivating human resources
with a high level of expertise. Furthermore, we will be actively
releasing new products and services. The “ALSOK IT Rescue”
service that we began providing from March 2023 wascreated to dispatch guards quickly to the scene in the event ofan IT equipment-related failure, and coordinate efforts withpersonnel at the IT Rescue Center for determining the cause
and providing emergency response. I think that such “Rush to
the scene services” are useful in a wide range of situations.
There is ample potential for further development as a service
that leverages ALSOK’s strength of being able to arrive quickly
at any site. Anticipation is also high for the “HOME ALSOKConnect”® service, which we started in April 2023. In addition
to customers being able to monitor security by themselvesusing their own smartphone, various plans are available to suitthe customer’s stage in life as a home security service thatcan be tailored to the customer’s specific needs.We arepushing ahead with efforts for stronger ties with builders ofresidential homes and regional construction companies.
Demand is currently recovering quickly for stationed
security. Given that workforce shortages are expected tocontinue over the medium- to long-term span, looking ahead
we will be accelerating efforts toward greater efficiency andlabor-saving measures by leveraging digital technologies.
Ensuring DX for security guards is of the utmost importance,
by using the latest devices to enhance security without
affecting the level of service provided, even with fewer
guards available.
We began expanding our overseas business from 2007,
with a key focus on Southeast Asia where many Japanesecompanies are active. The establishment of a subsidiary in
Bangladesh in November 2022 makes it the seventh region*2
we have expanded to, primarily around Southeast Asia. In
June 2023, we also announced that we acquired stock*3 ofbusiness company located in Indonesia. I have high hopes forfurther growth potential in businesses, including the diverse
range of ALSOK’s overseas businesses and services provided
to local subsidiaries other than Japanese companies.

Business opportunities arisingfrom our “24 hours a day, 7 daysa week response capabilities”
Businesses built on our “24 hours a day, 7 days a week
response capabilities” are viewed as holding immense
promise.
More than just businesses focused solely on crime*1 “Electronic Security Department,” “HOME ALSOK Business Department,” “Stationed Security Department,” “Transportation Security Department,” “Facility Management Department,”“Long-term Care Business Department,” and “International Affairs Department"*2 Thailand, Vietnam, China, Indonesia, India, Myanmar, Bangladesh*3 PT. Shield-On Service Tbk, temporary staffing and security service provider in Indonesia

prevention, we will be on the lookout for providing a range ofdifferent services in the future.
We are already receiving countless inquiries fromcompanies and municipalities regarding such potential new
businesses, which renewed my confidence in the value we
provide—being able to rush to any site throughout Japan andengage directly with customers. There has been a rise ininquiries such as comprehensive agreements withmunicipalities for services provided in response to disasters,
or services for protecting the elderly in regions with higher
populations of advanced age.
To enhance this “24 hours a day, 7 days a week response
capability” even further, it will be important to expand the fields
that each individual ALSOK guard is versed with. I think thatharnessing DX and developing a system capable ofdispatching expert personnel while coordinating efforts
between staff on site and the central office will be able tofurther build on our potential, including the provision ofmonitoring services that extend beyond the realm of security.
Initiatives for “digitization and utilization of data” outlined in
the “Grand Design 2025” Medium-Term Management Plan
are designed specifically to extract the full potential ofthis business.
New business opportunities concerning sustainability and
ESG are also increasing in the field of facility management.
Orders for installation work of LED lighting fixtures at offices
and EV charging stations in line with the increasing uptake of
EVs are just some of the examples of these opportunities.
Customers seeking a first line of response, such as contacting
us when they detect faults in installed EV facilities, closely
match the needs of security operations in many cases.
More recently, we are also providing an increasing range of
integrated services, from equipment sales to installation,
maintenance and on-site attendance.
Trying to uncover potential businesses outside of the
security domain faces limits if ALSOK were to try and develop
its own services. Right now, we are exchanging views with awide range of companies including startups in a search forpotential collaboration. The aim of this approach is to ensurethat more companies understand the value that ALSOK
provides, with the view to achieving mutual growth.

circumstances occurring these days, I have always been
conveying to employees that people are our most important
asset ever since I was appointed Group COO. I have alreadyoutlined our views on human resources training tailored to thespecific characteristics of each business field, however overthe past year, I feel that we have begun to stray away from theideal approach of developing training programs based on thequalities of each department and human resources skill levels,
including training of DX personnel. We will be making
improvements as soon as possible in this area.
During 2023, I planned a number of occasions for engaging
in dialogue with graduates who had recently joined ourcompany and young employees who have been with us for 4
to 5 years. Gaining an insight on feedback from young
employees during opportunities like these even helped me torealize a few things.
“Dialogue and empathy” with stakeholders, including
dialogue with employees like these, is the most important
keyword for me in my position as the Group COO. We also
actively hold small meetings and similar events to engage indialogue with investors and analysts. Receiving feedback fromthe perspective of investors is an extremely important aspect
underpinning ALSOK’s various initiatives. At the same time,
this also presents an opportunity for investors to gain an
insight into ALSOK’s initiatives and my own views. I will focus
on continuing “dialogue and empathy” with all our
stakeholders.
Little strokes fell great oaks—this is an idiom that strongly
resonates with me. Even the smallest effort or initiative leads
to significant achievements when continued in earnest. Thisapproach applies just as well to ALSOK’s corporate culture
and our founding spirit. ALSOK is applying its diversity andsense of speed to resolve issues present in this VUCA*4 age,as a company that is contributing to society. If each individual
employee can fine-tune their capabilities and increase theirown value, I am confident that it will lead to a boost in
ALSOK’s corporate value.

Valuing dialogue for a unified ALSOKWith the increasing social need for security and the rise incompanies that see the value in our “Rushing to the scene
service,” we anticipate growth in ALSOK’s business
opportunities, so covering manpower with machines and DX isof the utmost importance in preparation of the workforce
shortages I touched on earlier. The same conditions arepresent with Long-Term Care Services. In light of such

Engaging in dialogue with employees*4 Short for volatility, uncertainty, complexity, and ambiguity, this acronym refers to “society and economic circumstances that are unpredictable and undergoing immense change”

12

ALSOK REPORT 2023

13

Message from Group COO

Initiatives aimed at expanding
businesses further
With the COVID-19 pandemic winding down and the businessenvironment showing signs of recovery, moves have alreadystarted for developing a system aimed at further businessgrowth and expansion of new businesses.
From April 2023, ALSOK shifted to a structure of sevenbusiness divisions.*1 I believe that this type of businessstructure will make it easier to identify needs within eachmarket earlier, thereby allowing decisions to be made quicker,
leading to faster action being taken. We are also planning todevelop training programs suited to the characteristics of eachbusiness division, and focus on cultivating human resources
with a high level of expertise. Furthermore, we will be actively
releasing new products and services. The “ALSOK IT Rescue”
service that we began providing from March 2023 wascreated to dispatch guards quickly to the scene in the event ofan IT equipment-related failure, and coordinate efforts withpersonnel at the IT Rescue Center for determining the cause
and providing emergency response. I think that such “Rush to
the scene services” are useful in a wide range of situations.
There is ample potential for further development as a service
that leverages ALSOK’s strength of being able to arrive quickly
at any site. Anticipation is also high for the “HOME ALSOKConnect”® service, which we started in April 2023. In addition
to customers being able to monitor security by themselvesusing their own smartphone, various plans are available to suitthe customer’s stage in life as a home security service thatcan be tailored to the customer’s specific needs.We arepushing ahead with efforts for stronger ties with builders ofresidential homes and regional construction companies.
Demand is currently recovering quickly for stationed
security. Given that workforce shortages are expected tocontinue over the medium- to long-term span, looking ahead
we will be accelerating efforts toward greater efficiency andlabor-saving measures by leveraging digital technologies.
Ensuring DX for security guards is of the utmost importance,
by using the latest devices to enhance security without
affecting the level of service provided, even with fewer
guards available.
We began expanding our overseas business from 2007,
with a key focus on Southeast Asia where many Japanesecompanies are active. The establishment of a subsidiary in
Bangladesh in November 2022 makes it the seventh region*2
we have expanded to, primarily around Southeast Asia. In
June 2023, we also announced that we acquired stock*3 ofbusiness company located in Indonesia. I have high hopes forfurther growth potential in businesses, including the diverse
range of ALSOK’s overseas businesses and services provided
to local subsidiaries other than Japanese companies.

Business opportunities arisingfrom our “24 hours a day, 7 daysa week response capabilities”
Businesses built on our “24 hours a day, 7 days a week
response capabilities” are viewed as holding immense
promise.
More than just businesses focused solely on crime*1 “Electronic Security Department,” “HOME ALSOK Business Department,” “Stationed Security Department,” “Transportation Security Department,” “Facility Management Department,”“Long-term Care Business Department,” and “International Affairs Department"*2 Thailand, Vietnam, China, Indonesia, India, Myanmar, Bangladesh*3 PT. Shield-On Service Tbk, temporary staffing and security service provider in Indonesia

prevention, we will be on the lookout for providing a range ofdifferent services in the future.
We are already receiving countless inquiries fromcompanies and municipalities regarding such potential new
businesses, which renewed my confidence in the value we
provide—being able to rush to any site throughout Japan andengage directly with customers. There has been a rise ininquiries such as comprehensive agreements withmunicipalities for services provided in response to disasters,
or services for protecting the elderly in regions with higher
populations of advanced age.
To enhance this “24 hours a day, 7 days a week response
capability” even further, it will be important to expand the fields
that each individual ALSOK guard is versed with. I think thatharnessing DX and developing a system capable ofdispatching expert personnel while coordinating efforts
between staff on site and the central office will be able tofurther build on our potential, including the provision ofmonitoring services that extend beyond the realm of security.
Initiatives for “digitization and utilization of data” outlined in
the “Grand Design 2025” Medium-Term Management Plan
are designed specifically to extract the full potential ofthis business.
New business opportunities concerning sustainability and
ESG are also increasing in the field of facility management.
Orders for installation work of LED lighting fixtures at offices
and EV charging stations in line with the increasing uptake of
EVs are just some of the examples of these opportunities.
Customers seeking a first line of response, such as contacting
us when they detect faults in installed EV facilities, closely
match the needs of security operations in many cases.
More recently, we are also providing an increasing range of
integrated services, from equipment sales to installation,
maintenance and on-site attendance.
Trying to uncover potential businesses outside of the
security domain faces limits if ALSOK were to try and develop
its own services. Right now, we are exchanging views with awide range of companies including startups in a search forpotential collaboration. The aim of this approach is to ensurethat more companies understand the value that ALSOK
provides, with the view to achieving mutual growth.

circumstances occurring these days, I have always been
conveying to employees that people are our most important
asset ever since I was appointed Group COO. I have alreadyoutlined our views on human resources training tailored to thespecific characteristics of each business field, however overthe past year, I feel that we have begun to stray away from theideal approach of developing training programs based on thequalities of each department and human resources skill levels,
including training of DX personnel. We will be making
improvements as soon as possible in this area.
During 2023, I planned a number of occasions for engaging
in dialogue with graduates who had recently joined ourcompany and young employees who have been with us for 4
to 5 years. Gaining an insight on feedback from young
employees during opportunities like these even helped me torealize a few things.
“Dialogue and empathy” with stakeholders, including
dialogue with employees like these, is the most important
keyword for me in my position as the Group COO. We also
actively hold small meetings and similar events to engage indialogue with investors and analysts. Receiving feedback fromthe perspective of investors is an extremely important aspect
underpinning ALSOK’s various initiatives. At the same time,
this also presents an opportunity for investors to gain an
insight into ALSOK’s initiatives and my own views. I will focus
on continuing “dialogue and empathy” with all our
stakeholders.
Little strokes fell great oaks—this is an idiom that strongly
resonates with me. Even the smallest effort or initiative leads
to significant achievements when continued in earnest. Thisapproach applies just as well to ALSOK’s corporate culture
and our founding spirit. ALSOK is applying its diversity andsense of speed to resolve issues present in this VUCA*4 age,as a company that is contributing to society. If each individual
employee can fine-tune their capabilities and increase theirown value, I am confident that it will lead to a boost in
ALSOK’s corporate value.

Valuing dialogue for a unified ALSOKWith the increasing social need for security and the rise incompanies that see the value in our “Rushing to the scene
service,” we anticipate growth in ALSOK’s business
opportunities, so covering manpower with machines and DX isof the utmost importance in preparation of the workforce
shortages I touched on earlier. The same conditions arepresent with Long-Term Care Services. In light of such

Engaging in dialogue with employees*4 Short for volatility, uncertainty, complexity, and ambiguity, this acronym refers to “society and economic circumstances that are unpredictable and undergoing immense change”

12

ALSOK REPORT 2023

13

ALSOK’s Story of Value Creation

ALSOK’s Value-Creation Model

The ALSOK Group has continued to provide security services of impeccable quality for more than 50 years since its establishment.
The Group’s excellent human resources, organizational capabilities, and the problem solving capabilities recognized by customers andsociety 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.

Value Provided

Protecting the safety and security of ourcustomers and of society as a whole.

Growth Strategies and Materiality
ALSOK’s Business Model

Medium-Term
Management Plan
(FY2022-FY2026)

Diversifying Social Issues
Development of anadvanced information society(advances in AI, DX)

Demand for
improvements to QOL*

Thre

Declining birthrate andAging populatione S t r e n g t h s (P .1 6

Abundant human resources• Enhanced training system• Promotion of diversity• Number of Employees:

Re

ol o

de

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

Approx. 2,300 locations• Business Operations:

Head Office 64 Branches
37 Offices 257 Sales
offices• Certifications:
ISO 9001, ISO 14001,
and ISO 22301

a
um
nt H
Excelle• Number of Depots
Located Nationwide:

Transportation
Security
Services

Sound financial standing• Equity Capital Ratio: 60.9%• Consolidated Net Assets:

343,893 (millions of yen)
• Ranking (R&I): A＋

Management Philosophy

Business
Model

General Property
Management andFire Protection
Services

n
Re
sou
rces

Basic Policies

Stationed
Security
Services

Long-term
Care
ServicesgarO

Employees

3. Establishing a work environment where employees play an active role

Based on the belief thatpeople are an importantsource of corporate
activities, we provide anenvironment in which eachand every employee canfully demonstrate theirabilities and work
energetically and develop
their abilities

Greatertrust

Becoming a Resilient Integrated Safety
and Security Solutions Provider
Five Material Issues (P.26)(1) Providing Trustworthy Security
Services(2) Providing Products and Services
That Help Resolve Social Issues

Stableprofits(3) Cultivating Human Resources and Buildinga Comfortable Workplace Environment

Framework supporting businesses (Sustainability Management) (P.28)
Service quality management/ESG initiatives

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

Provide safety and security
through our high-quality
products and services

2. Digitization and utilization of data

VisionNew
know-how

Customers

1. Enhancement of response capacity for diverse safety and security needs of society

Value createdby businessgyElectronic
Security Services

39,039(P.25)

4. Strengthen the efforts of sustainability)

Solving Capabilmelb er needs and use of the late ities
st tProning custom
ech
n
fi

Management Capital

In seven countries witha focus on Southeast Asia

Addressing sustainability(climate change, etc.)

ni
za
tio
n al
C apab ilities

Diversifying needs for safety
and security as societies
become more complex



(4) Contributing to Local Communities
through Active Communication(5) Consideration for the Global
Environment

Shareholders and Other
Investors
Increase in stock price andprovision of shareholder
returns by increasing
corporate value throughsustainable growth as aresilient “integrated safety
and security solutions
provider”

Business Partners
To solve various social
issues, ALSOK and theentire supply chain will
work together to achievesustainable growth.

Local Communities andthe Global Society
Contribute to the creationof a safe and secure society
by creating new solutions
centered on safety andsecurity in response todiversifying risks* QOL...Quality of Life

14

ALSOK REPORT 2023

15

ALSOK’s Story of Value Creation

ALSOK’s Value-Creation Model

The ALSOK Group has continued to provide security services of impeccable quality for more than 50 years since its establishment.
The Group’s excellent human resources, organizational capabilities, and the problem solving capabilities recognized by customers andsociety 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.

Value Provided

Protecting the safety and security of ourcustomers and of society as a whole.

Growth Strategies and Materiality
ALSOK’s Business Model

Medium-Term
Management Plan
(FY2022-FY2026)

Diversifying Social Issues
Development of anadvanced information society(advances in AI, DX)

Demand for
improvements to QOL*

Thre

Declining birthrate andAging populatione S t r e n g t h s (P .1 6

Abundant human resources• Enhanced training system• Promotion of diversity• Number of Employees:

Re

ol o

de

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

Approx. 2,300 locations• Business Operations:

Head Office 64 Branches
37 Offices 257 Sales
offices• Certifications:
ISO 9001, ISO 14001,
and ISO 22301

a
um
nt H
Excelle• Number of Depots
Located Nationwide:

Transportation
Security
Services

Sound financial standing• Equity Capital Ratio: 60.9%• Consolidated Net Assets:

343,893 (millions of yen)
• Ranking (R&I): A＋

Management Philosophy

Business
Model

General Property
Management andFire Protection
Services

n
Re
sou
rces

Basic Policies

Stationed
Security
Services

Long-term
Care
ServicesgarO

Employees

3. Establishing a work environment where employees play an active role

Based on the belief thatpeople are an importantsource of corporate
activities, we provide anenvironment in which eachand every employee canfully demonstrate theirabilities and work
energetically and develop
their abilities

Greatertrust

Becoming a Resilient Integrated Safety
and Security Solutions Provider
Five Material Issues (P.26)(1) Providing Trustworthy Security
Services(2) Providing Products and Services
That Help Resolve Social Issues

Stableprofits(3) Cultivating Human Resources and Buildinga Comfortable Workplace Environment

Framework supporting businesses (Sustainability Management) (P.28)
Service quality management/ESG initiatives

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

Provide safety and security
through our high-quality
products and services

2. Digitization and utilization of data

VisionNew
know-how

Customers

1. Enhancement of response capacity for diverse safety and security needs of society

Value createdby businessgyElectronic
Security Services

39,039(P.25)

4. Strengthen the efforts of sustainability)

Solving Capabilmelb er needs and use of the late ities
st tProning custom
ech
n
fi

Management Capital

In seven countries witha focus on Southeast Asia

Addressing sustainability(climate change, etc.)

ni
za
tio
n al
C apab ilities

Diversifying needs for safety
and security as societies
become more complex



(4) Contributing to Local Communities
through Active Communication(5) Consideration for the Global
Environment

Shareholders and Other
Investors
Increase in stock price andprovision of shareholder
returns by increasing
corporate value throughsustainable growth as aresilient “integrated safety
and security solutions
provider”

Business Partners
To solve various social
issues, ALSOK and theentire supply chain will
work together to achievesustainable growth.

Local Communities andthe Global Society
Contribute to the creationof a safe and secure society
by creating new solutions
centered on safety andsecurity in response todiversifying risks* QOL...Quality of Life

14

ALSOK REPORT 2023

15

ALSOK’s Story of Value Creation

ALSOK’s Strengths

ALSOK is contributing to the safety and security of customers
and society with its “Three Strengths.”

Excellent Human Resources
As ALSOK is in the business of providing value by protecting people and society, the most important capital is its human resources.
For this reason, we need to develop human resources capable of embodying ALSOK’s philosophy of “arigato no kokoro”(a feeling of gratefulness and gratitude) and “bushi no seishin” (a samurai spirit), into their actual actions.
To achieve this, we provide initial training for both new employees and seconded employees from other companies,
run education for ensuring compliance, and encourage the acquisition of various types of certifications.

Certifications
Number of Security Planners

Performance

In total

799

Number of Employees Who
Have Attained the Rank
of Expert in Martial Arts
Number of Construction Managing
Engineers, Electricians

Approx.

1,400

Number of People with ALSOKAssistance*

Approx.

7,100

3,681

In total

Number of Security Consultants
Number of Employees
Who Have CompletedFirst-Aid Training

In total

Number of Fire Protection Engineers

Approx.

42

23,292
2,800* Internal first-aid certification system to enhance the assistancecapabilities of guards who need to rush to the scene quickly
in emergencies

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

Over

Number of cases of cooperation with crime prevention(special fraud prevention, lifesaving, firefighting activities,
criminal arrest cases)

870
324

Organizational Capabilities
With the industry-leading network in Japan,
ALSOK provides a sense of security to society andcustomers 24 hours a day, 7 days a week, by harnessing
its agility to rush to the site immediately in the event ofan emergency.
More than just in Japan, high-quality services are also provided in Southeast Asiaand other regions.

Number of Depots Located Nationwide

9,515

Number of Company Vehicles** Excluding bicycles

Overseas Operations

Number of employees
Time to Arrive on the Scene(non-consolidated)

39,03916 minutes on average

500 (1,747 municipalities nationwide)
Consolidated Subsidiaries 79
Companies Accounted for by the Equity Method 16
In 7 countries with a focus on Southeast Asia

Number of municipalities where
emergency reporting service is provided
Number of Group Companies

2,300

Approx.

Approx.

Problem Solving Capabilities
ALSOK has long played a role contributing to solving local community andcustomer issues.
The Group will continue pooling its human resources and organizational
capabilities to respond to diversifying social issues with the aim of becoming
a problem-solving company.

Specific examples of services
Specific Example (1)Specific Example (2)Specific Example (3)Cash Deposit and Dispenser Machine On-Line System

Accident Scene First-Responder Service

Infectious Disease Control Measures

Issue

The ideal security company,as envisioned by our founder

ALSOK’s Four Principles

Sincerity, Accuracy, Strength, and Speed

Sincerity

Strength

The Sun Symbolizes Sincerity• Security companies fulfill the important mission ofprotecting clients’ lives and property

The Eagle Symbolizes Strength• Security requires strong-minded people

Speed

Accuracy
The Rod Symbolizes Accuracy• Professional security services must not only be accurate,
but must never be muddled

Company emblem

The Laurel Leaves Symbolize the Speed of an
Olympic Champion• Security services must always be implemented
rapidly• Efficiency of cash management due tolabor shortages, work-style reforms,
abolishment of night safes(company and municipality issue)

Issue• Alleviates worries during an accident(individual issue)• Extensive capabilities for responding toaccidents covered by vehicle insurance(company issue)

Issue• Reliable operation at vaccination sites
and ensuring peace of mind for people
with light symptoms (municipality issue)• Safety confirmation of employees withsymptoms (company issue)

Solution

Solution

Solution

Introducing the “Cash Deposit andDispenser Machine On-Line System” thatallows customers to deposit their sales
helps to effort required cash-related
operations like having a supervisor
present.

ALSOK’s staff rush to the scene of an
accident when customers are feeling mostanxious, and provide a quick and smooth
response to accidents to help alleviate
concerns in the event of an accident.

ALSOK provided security at places suchas COVID-19 vaccination centers andhotels for people with light symptoms. Our
existing “ALSOK Safety Confirmation
Service” was also provided for managing
the health of employees who tested
positive.

* Figures included here are as the end of March, 2023.

16

ALSOK REPORT 2023

17

ALSOK’s Story of Value Creation

ALSOK’s Strengths

ALSOK is contributing to the safety and security of customers
and society with its “Three Strengths.”

Excellent Human Resources
As ALSOK is in the business of providing value by protecting people and society, the most important capital is its human resources.
For this reason, we need to develop human resources capable of embodying ALSOK’s philosophy of “arigato no kokoro”(a feeling of gratefulness and gratitude) and “bushi no seishin” (a samurai spirit), into their actual actions.
To achieve this, we provide initial training for both new employees and seconded employees from other companies,
run education for ensuring compliance, and encourage the acquisition of various types of certifications.

Certifications
Number of Security Planners

Performance

In total

799

Number of Employees Who
Have Attained the Rank
of Expert in Martial Arts
Number of Construction Managing
Engineers, Electricians

Approx.

1,400

Number of People with ALSOKAssistance*

Approx.

7,100

3,681

In total

Number of Security Consultants
Number of Employees
Who Have CompletedFirst-Aid Training

In total

Number of Fire Protection Engineers

Approx.

42

23,292
2,800* Internal first-aid certification system to enhance the assistancecapabilities of guards who need to rush to the scene quickly
in emergencies

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

Over

Number of cases of cooperation with crime prevention(special fraud prevention, lifesaving, firefighting activities,
criminal arrest cases)

870
324

Organizational Capabilities
With the industry-leading network in Japan,
ALSOK provides a sense of security to society andcustomers 24 hours a day, 7 days a week, by harnessing
its agility to rush to the site immediately in the event ofan emergency.
More than just in Japan, high-quality services are also provided in Southeast Asiaand other regions.

Number of Depots Located Nationwide

9,515

Number of Company Vehicles** Excluding bicycles

Overseas Operations

Number of employees
Time to Arrive on the Scene(non-consolidated)

39,03916 minutes on average

500 (1,747 municipalities nationwide)
Consolidated Subsidiaries 79
Companies Accounted for by the Equity Method 16
In 7 countries with a focus on Southeast Asia

Number of municipalities where
emergency reporting service is provided
Number of Group Companies

2,300

Approx.

Approx.

Problem Solving Capabilities
ALSOK has long played a role contributing to solving local community andcustomer issues.
The Group will continue pooling its human resources and organizational
capabilities to respond to diversifying social issues with the aim of becoming
a problem-solving company.

Specific examples of services
Specific Example (1)Specific Example (2)Specific Example (3)Cash Deposit and Dispenser Machine On-Line System

Accident Scene First-Responder Service

Infectious Disease Control Measures

Issue

The ideal security company,as envisioned by our founder

ALSOK’s Four Principles

Sincerity, Accuracy, Strength, and Speed

Sincerity

Strength

The Sun Symbolizes Sincerity• Security companies fulfill the important mission ofprotecting clients’ lives and property

The Eagle Symbolizes Strength• Security requires strong-minded people

Speed

Accuracy
The Rod Symbolizes Accuracy• Professional security services must not only be accurate,
but must never be muddled

Company emblem

The Laurel Leaves Symbolize the Speed of an
Olympic Champion• Security services must always be implemented
rapidly• Efficiency of cash management due tolabor shortages, work-style reforms,
abolishment of night safes(company and municipality issue)

Issue• Alleviates worries during an accident(individual issue)• Extensive capabilities for responding toaccidents covered by vehicle insurance(company issue)

Issue• Reliable operation at vaccination sites
and ensuring peace of mind for people
with light symptoms (municipality issue)• Safety confirmation of employees withsymptoms (company issue)

Solution

Solution

Solution

Introducing the “Cash Deposit andDispenser Machine On-Line System” thatallows customers to deposit their sales
helps to effort required cash-related
operations like having a supervisor
present.

ALSOK’s staff rush to the scene of an
accident when customers are feeling mostanxious, and provide a quick and smooth
response to accidents to help alleviate
concerns in the event of an accident.

ALSOK provided security at places suchas COVID-19 vaccination centers andhotels for people with light symptoms. Our
existing “ALSOK Safety Confirmation
Service” was also provided for managing
the health of employees who tested
positive.

* Figures included here are as the end of March, 2023.

16

ALSOK REPORT 2023

17

ALSOK’s Story of Value Creation

Security Services
Electronic Security Department

HOME ALSOK Business Department

Business Details

Business Details
Electronic security services for individual users include “HOME ALSOK Connect®” launched in April
2023 based on the “HOME ALSOK” brand in line with the concept of security services for all aspectsof life, “HOME ALSOK APARTMENT AND CONDOMINIUM PLAN” for housing complexes, and the“HOME ALSOK MIMAMORI SUPPORT®” monitoring service for the elderly.

This business installs alarm equipment like sensors at contracted sites, remotely monitors intrusions,fires, and equipment anomalies at the guard center via communication lines, and dispatches security
guards to respond to any abnormal situations.
As a service for our corporate clients, we are offering the online security system “ALSOK-G7”
equipped with high-definition imaging sensors as standard.

“Initiatives” for achieving our Vision

Our Vision• Promote the use of advanced technology

such as AI• Provision of innovative services deliveringboth efficient electronic security services andservice quality, while maintaining the value ofhuman-based services

Expectations from society• Providing high-quality services towardachieving a safe and secure society• Business operation with consideration for
the global environment

Atsuo Oyake“Initiatives” for achieving our Vision

Our Vision

With risks affecting society becoming increasingly diversified,
we are examining the introduction of the latest technology,
including the use smartglasses to support the operations ofguards, response training using virtual spaces (metaverse),
and the future use of autonomous vehicles.
We are also moving ahead with various initiatives, including
shifting to environmentally friendly vehicles and electricmotorcycles (in metropolitan areas) to reduce the impact on
the global environment, as well as expand and construct new
repair centers for promoting the reuse of alarm equipment.

• Achieve a “Lifestyle where safety is the norm”• Contribute to a comfortable lifestyle forthe elderly

Expectations from society• Measures to combat the increase in violent

crime and overcoming concerns• “Constant” monitoring “just in case,”with the increase in elderly people living
alone or elderly couple households• Services developed in response todiversifying lifestyles

We are aiming to create local communities that are safe andsecure to live in, without elderly people living alone, elderly
couple households, women or children experiencing crime.
Providing products and services with a focus on home
security that caters to the lifestyles and life stages of eachindividual customer, helps to protect customer lifestyles
whether they are away from home for extended periods oftime, left their home quickly, or even if they are actually intheir home.
Masaharu Watanabe

General Manager, Electronic Security Department

Net Sales

Electronic security services contracts for corporate clients

Electronic security services contracts for individual users(billions of yen)180

(1,000 contracts)
600(1,000 contracts)
500

175.5

175.6

176.7

176.4

175.9

175

550

520
170

0

533

548

540

556
450

500

2019

2020

2021

2022

2023

(FY)

0

428

439

449

460

TOPICS“HOME ALSOK Connect®” launched

473

400

2019

2020

2021

2022

2023

(FY)

0

2019

2020

2021

2022

2023

(FY)

* Sales of electronic security services (including for corporate clients and individual users)

TOPICS

Operational Flow for Rushing to the Scene

Image (video) monitoring and extensive range
of optional services
The “ALSOK-G7” security system for corporate clients isequipped with a high-definition imaging sensors asstandard, and available as a video-based service.
Gaining an understanding of anomalies in real-timehelps to prevent the spread of damage in the event of an
emergency, allows for a quicker response, and limits
unnecessary dispatches.
Optional services include an image storage service
where security camera video is saved on the cloud, and an
online access service for viewing sign in/out data or
entry/exit management data online,
as part of a system that also
facilitates labor management andbusiness efficiency in addition tosecurity aspects.
Monitoring on-site videos,
issuing audio warnings

18

Alarm ALSOK Guard Centertransmission

Surveillance system ALSOK’s Dispatch System

Dispatch order
Customer site

Mobile terminal
Dispatch instruction
Customer site information

Materiality Topics

Rushing to the scene
Guards are sent
quickly from nearest
security station

Nearestsecurity
guard

Promoting reuse of alarm equipment and expanding
repair centers
We are working to reduce the amount ofwaste and resources used in manufacturing
by reusing alarm equipment.
To enhance the scope of the reuse
initiative, in August 2022, we expanded thefloor space of the repair center in Kanagawa
Prefecture and established a new repair
center in the Osaka area.

Consideration for
the Global Environment(→P.40)

Videos have been created for inspections andother manuals, which make it easier to visualize
the operational steps for guards and engineers
to prevent mistakes and enhance quality.

Continuously
acquirelocation
information
using GPS

Based on the keywords of “ALSOK for smartphone crime
prevention,” the home security “HOME ALSOK Connect®”
service for smartphones was launched from April 2023.
In addition to conventional online security, we also
provide self-security where monthly fees can be kept low
by having customers choose whether to have guards
attend their site, as part of a flexible package designed tosuit changing security requirements.
3 Key Points of “HOME ALSOK Connect®”

Introduction of video manuals
Destination information issent from the mobile
phone to the carnavigation
systemGeneral Manager, HOME ALSOK Business Department

Providing Trustworthy
Security Services (→P.28)

Cultivating Human Resources and Buildinga Comfortable Workplace Environment(→P.34)(1) Simple and compact
design(2) Smartphone app makes
security easy(3) Two security plans tosuit each life stage
Staff Comment

We focused on incorporating as best as possible ideas raised
from customer surveys and requests received from staff working
at sites, covering aspects from equipment design andfunctionality to voice guidance. We identified which aspects could
be achieved within a limited budget and time period, andstruggled making various adjustments, while
overcoming the impact of COVID-19 andsemiconductor shortages, to successfully
release the service.
I hope we can ensure peace of mind foreven more customers by providing thisservice.
Yuri Abe, HOME ALSOK Business Department

ALSOK REPORT 2023

19

ALSOK’s Story of Value Creation

Security Services
Electronic Security Department

HOME ALSOK Business Department

Business Details

Business Details
Electronic security services for individual users include “HOME ALSOK Connect®” launched in April
2023 based on the “HOME ALSOK” brand in line with the concept of security services for all aspectsof life, “HOME ALSOK APARTMENT AND CONDOMINIUM PLAN” for housing complexes, and the“HOME ALSOK MIMAMORI SUPPORT®” monitoring service for the elderly.

This business installs alarm equipment like sensors at contracted sites, remotely monitors intrusions,fires, and equipment anomalies at the guard center via communication lines, and dispatches security
guards to respond to any abnormal situations.
As a service for our corporate clients, we are offering the online security system “ALSOK-G7”
equipped with high-definition imaging sensors as standard.

“Initiatives” for achieving our Vision

Our Vision• Promote the use of advanced technology

such as AI• Provision of innovative services deliveringboth efficient electronic security services andservice quality, while maintaining the value ofhuman-based services

Expectations from society• Providing high-quality services towardachieving a safe and secure society• Business operation with consideration for
the global environment

Atsuo Oyake“Initiatives” for achieving our Vision

Our Vision

With risks affecting society becoming increasingly diversified,
we are examining the introduction of the latest technology,
including the use smartglasses to support the operations ofguards, response training using virtual spaces (metaverse),
and the future use of autonomous vehicles.
We are also moving ahead with various initiatives, including
shifting to environmentally friendly vehicles and electricmotorcycles (in metropolitan areas) to reduce the impact on
the global environment, as well as expand and construct new
repair centers for promoting the reuse of alarm equipment.

• Achieve a “Lifestyle where safety is the norm”• Contribute to a comfortable lifestyle forthe elderly

Expectations from society• Measures to combat the increase in violent

crime and overcoming concerns• “Constant” monitoring “just in case,”with the increase in elderly people living
alone or elderly couple households• Services developed in response todiversifying lifestyles

We are aiming to create local communities that are safe andsecure to live in, without elderly people living alone, elderly
couple households, women or children experiencing crime.
Providing products and services with a focus on home
security that caters to the lifestyles and life stages of eachindividual customer, helps to protect customer lifestyles
whether they are away from home for extended periods oftime, left their home quickly, or even if they are actually intheir home.
Masaharu Watanabe

General Manager, Electronic Security Department

Net Sales

Electronic security services contracts for corporate clients

Electronic security services contracts for individual users(billions of yen)180

(1,000 contracts)
600(1,000 contracts)
500

175.5

175.6

176.7

176.4

175.9

175

550

520
170

0

533

548

540

556
450

500

2019

2020

2021

2022

2023

(FY)

0

428

439

449

460

TOPICS“HOME ALSOK Connect®” launched

473

400

2019

2020

2021

2022

2023

(FY)

0

2019

2020

2021

2022

2023

(FY)

* Sales of electronic security services (including for corporate clients and individual users)

TOPICS

Operational Flow for Rushing to the Scene

Image (video) monitoring and extensive range
of optional services
The “ALSOK-G7” security system for corporate clients isequipped with a high-definition imaging sensors asstandard, and available as a video-based service.
Gaining an understanding of anomalies in real-timehelps to prevent the spread of damage in the event of an
emergency, allows for a quicker response, and limits
unnecessary dispatches.
Optional services include an image storage service
where security camera video is saved on the cloud, and an
online access service for viewing sign in/out data or
entry/exit management data online,
as part of a system that also
facilitates labor management andbusiness efficiency in addition tosecurity aspects.
Monitoring on-site videos,
issuing audio warnings

18

Alarm ALSOK Guard Centertransmission

Surveillance system ALSOK’s Dispatch System

Dispatch order
Customer site

Mobile terminal
Dispatch instruction
Customer site information

Materiality Topics

Rushing to the scene
Guards are sent
quickly from nearest
security station

Nearestsecurity
guard

Promoting reuse of alarm equipment and expanding
repair centers
We are working to reduce the amount ofwaste and resources used in manufacturing
by reusing alarm equipment.
To enhance the scope of the reuse
initiative, in August 2022, we expanded thefloor space of the repair center in Kanagawa
Prefecture and established a new repair
center in the Osaka area.

Consideration for
the Global Environment(→P.40)

Videos have been created for inspections andother manuals, which make it easier to visualize
the operational steps for guards and engineers
to prevent mistakes and enhance quality.

Continuously
acquirelocation
information
using GPS

Based on the keywords of “ALSOK for smartphone crime
prevention,” the home security “HOME ALSOK Connect®”
service for smartphones was launched from April 2023.
In addition to conventional online security, we also
provide self-security where monthly fees can be kept low
by having customers choose whether to have guards
attend their site, as part of a flexible package designed tosuit changing security requirements.
3 Key Points of “HOME ALSOK Connect®”

Introduction of video manuals
Destination information issent from the mobile
phone to the carnavigation
systemGeneral Manager, HOME ALSOK Business Department

Providing Trustworthy
Security Services (→P.28)

Cultivating Human Resources and Buildinga Comfortable Workplace Environment(→P.34)(1) Simple and compact
design(2) Smartphone app makes
security easy(3) Two security plans tosuit each life stage
Staff Comment

We focused on incorporating as best as possible ideas raised
from customer surveys and requests received from staff working
at sites, covering aspects from equipment design andfunctionality to voice guidance. We identified which aspects could
be achieved within a limited budget and time period, andstruggled making various adjustments, while
overcoming the impact of COVID-19 andsemiconductor shortages, to successfully
release the service.
I hope we can ensure peace of mind foreven more customers by providing thisservice.
Yuri Abe, HOME ALSOK Business Department

ALSOK REPORT 2023

19

ALSOK’s Story of Value Creation

Security Services
Stationed Security Department

Transportation Security Department

Business Details

Business Details
Dating back to the safe and reliable transportation of valuables including transporting cash to designatedlocations, today we provide services like ATM General Management for the all-inclusive management offinancial institution ATMs, and the Cash Deposit and Dispenser Machine On-Line System for corporateclients to cover backoffice operations and manage small change and in-store sales.
As a payment provider, the ALSOK Multi-QR Payment Solution is also available to respond to thedevelopment of a cashless society.

Security guards are stationed at the contracted facility and access control, patrol, and monitoring are
performed to prevent various accidents and respond to emergencies and accidents. We also provide
security for various events such as international conferences, sports competitions, parades, and personal
protection for celebrities and corporate executives in Japan and abroad, meeting a wide range of needs.
In addition, the use of various equipment (X-ray inspection equipment, etc.) and DX implementation withstationed security provide more efficient and effective security.

“Initiatives” for achieving our Vision

Our Vision• DX implementation for moreadvanced security• Efficiency and labor-savings
operations using AI, robots anddronesExpectations from society• Responding to disasters and fires

with advanced security• Provision of services leverage ourmobilization capabilities as one of
the industry’s leading companies

Kensuke Iwashita(billions of yen)
130

123.7

120

111.9

116.9

113.1

110

0

2019

2020

2021

2022

2023

(FY)

Number of security service contracts for major events andlong-term contracts
Number of long-term contracts(contracts)
5,000

4,485

4,468

Number of security service contracts for major events

4,371

4,584

3,000

1,187

1,375

1,170

1,494

1,284

Expectations from society• Supply sustainable and reliable services associal infrastructure• Safe and reliable transportation andmanagement of valuables

Fumihiro Oishi

General Manager, Stationed Security Department(billions of yen)70

We are aiming to shift from the concept of the existing“Demonstrated Security*” where security guards areequipped with smartphones and other digital devices,
to “Visible Security” for visualizing safety and security.
With entry/exit management, use of security robots, drones
and other inspection devices during patrols, and being able torush to scenes faster using AI camera systems—we will bemoving to introduce systems using IoT to provide advanced
services and achieve efficiency and labor-saving operations.
Staff Comment

67.8
65.6

65.6

2020

2021

Response to DX implementation for municipality
and financial institution operations

66.7

65

62.2
60

0

2019

2022

2023

(FY)

No. of Cash deposit and dispenser machine on-line system andATMs under our management
Cash deposit and dispenser machine on-line system(machines)
80,000No. of ATMs under our management

71,93073,88574,50573,59273,06623,09825,24826,516

27,91528,94460,00040,000

2020

2021

2022

2023

Staff Comment

Makoto Ando, Transportation Security Department
0(FY)

Financial institutions and local public sector bodies areaccelerating efforts toward “digitization” in order to improvebusiness efficiency and convenience. To help resolve thisissue, ALSOK began operating a joint operations center in
April 2022 for commissioning electronic clearinghouse forbills from multiple financial institutions.
We are also working on sales of a tax payment receipt
system for contributing to more efficient collection of taxes
and public funds at municipalities.

We examined and made preparations against
various potential risks to prevent the unexpectedoccurring in the new field of the electronicclearinghouse for bills, and successfully
established a joint operations center. We willcontinue our day-to-day efforts with the view toexpanding business in the future.

Hiroaki Sato, Stationed Security Department
2019

General Manager, Transportation Security Department

TOPICSNet Sales

20,0001,000
0cash-related operations

State-of-the-art devices allow visualization of
security, and customers let me know about
their peace of mind, so I definitely feel theeffects of “Visible Security.”
Going forward, I want to further enhancecoordination with IoT and systems.

4,658

4,000

2,000

domestic cash distribution• Provide comprehensive solutions for

DX in Stationed Security
128.8

Our involvement with transportation security services beganwith the transportation of bills, which was then developed
into a service to suit the times and released into the market.
We are enhancing our response to changes occurring
throughout the environment such as moves to cashless
payment systems, in order to leverage our comprehensive
capabilities.
We will continue to make use of the transportation
security platform to support social infrastructure through ourcomprehensive solutions, including cash-related operations.

• Establish a solid presence as a supplier of

TOPICSNet Sales“Initiatives” for achieving our Vision

Our Vision

ALSOK’s stationed security has progressed from human-based
security to security tailored to the needs of society and customers
through the use of equipment and systems.
In light of growing labor shortages going forward, we are aiming toprovide high-quality security services, with efficiency and labor-saving
operations through the introduction of state-of-the-art equipment
including AI and robots, expanding service details by assigning security
guards equipped with sensors, and promoting the acquisition ofvarious certifications.
We will leverage our mobilization capabilities as one of the industry’s
leading companies and contribute to various types of events.

2019

2020

2021

2022

2023

(FY)

* “Demonstrated Security” ...effective of security guards in uniform for preventing crime

20

Materiality Topics

Materiality Topics

Security for events around Japan (festivals, etc.)

Revision of cash transport vehicle accessories*and shift to HVs

Fireworks festivals and sports events that had been put on hold at the height of COVID-19 are resuming in full swing.
With severe labor shortages across the security industry, ALSOK is leveraging its collaborative strengths throughout theGroup to provide a reliable service. With concerns over outbreaks at large gatherings, we are contributing to local
communities through safe and secure event operation.

Vehicles used for transportation security services are heavy due to requiring a high level of robustness, and improving fuelefficiency was a challenge. We have focused our efforts on achieving both vehicle safety and a lighter weight, and using
eco-friendly vehicles to as a means of reducing CO2 emissions.

Contributing to Local
Communities throughActive Communication(→P.38)* Accessories installed on vehicles, etc.

Consideration for
the Global Environment(→P.40)ALSOK REPORT 2023

21

ALSOK’s Story of Value Creation

Security Services
Stationed Security Department

Transportation Security Department

Business Details

Business Details
Dating back to the safe and reliable transportation of valuables including transporting cash to designatedlocations, today we provide services like ATM General Management for the all-inclusive management offinancial institution ATMs, and the Cash Deposit and Dispenser Machine On-Line System for corporateclients to cover backoffice operations and manage small change and in-store sales.
As a payment provider, the ALSOK Multi-QR Payment Solution is also available to respond to thedevelopment of a cashless society.

Security guards are stationed at the contracted facility and access control, patrol, and monitoring are
performed to prevent various accidents and respond to emergencies and accidents. We also provide
security for various events such as international conferences, sports competitions, parades, and personal
protection for celebrities and corporate executives in Japan and abroad, meeting a wide range of needs.
In addition, the use of various equipment (X-ray inspection equipment, etc.) and DX implementation withstationed security provide more efficient and effective security.

“Initiatives” for achieving our Vision

Our Vision• DX implementation for moreadvanced security• Efficiency and labor-savings
operations using AI, robots anddronesExpectations from society• Responding to disasters and fires

with advanced security• Provision of services leverage ourmobilization capabilities as one of
the industry’s leading companies

Kensuke Iwashita(billions of yen)
130

123.7

120

111.9

116.9

113.1

110

0

2019

2020

2021

2022

2023

(FY)

Number of security service contracts for major events andlong-term contracts
Number of long-term contracts(contracts)
5,000

4,485

4,468

Number of security service contracts for major events

4,371

4,584

3,000

1,187

1,375

1,170

1,494

1,284

Expectations from society• Supply sustainable and reliable services associal infrastructure• Safe and reliable transportation andmanagement of valuables

Fumihiro Oishi

General Manager, Stationed Security Department(billions of yen)70

We are aiming to shift from the concept of the existing“Demonstrated Security*” where security guards areequipped with smartphones and other digital devices,
to “Visible Security” for visualizing safety and security.
With entry/exit management, use of security robots, drones
and other inspection devices during patrols, and being able torush to scenes faster using AI camera systems—we will bemoving to introduce systems using IoT to provide advanced
services and achieve efficiency and labor-saving operations.
Staff Comment

67.8
65.6

65.6

2020

2021

Response to DX implementation for municipality
and financial institution operations

66.7

65

62.2
60

0

2019

2022

2023

(FY)

No. of Cash deposit and dispenser machine on-line system andATMs under our management
Cash deposit and dispenser machine on-line system(machines)
80,000No. of ATMs under our management

71,93073,88574,50573,59273,06623,09825,24826,516

27,91528,94460,00040,000

2020

2021

2022

2023

Staff Comment

Makoto Ando, Transportation Security Department
0(FY)

Financial institutions and local public sector bodies areaccelerating efforts toward “digitization” in order to improvebusiness efficiency and convenience. To help resolve thisissue, ALSOK began operating a joint operations center in
April 2022 for commissioning electronic clearinghouse forbills from multiple financial institutions.
We are also working on sales of a tax payment receipt
system for contributing to more efficient collection of taxes
and public funds at municipalities.

We examined and made preparations against
various potential risks to prevent the unexpectedoccurring in the new field of the electronicclearinghouse for bills, and successfully
established a joint operations center. We willcontinue our day-to-day efforts with the view toexpanding business in the future.

Hiroaki Sato, Stationed Security Department
2019

General Manager, Transportation Security Department

TOPICSNet Sales

20,0001,000
0cash-related operations

State-of-the-art devices allow visualization of
security, and customers let me know about
their peace of mind, so I definitely feel theeffects of “Visible Security.”
Going forward, I want to further enhancecoordination with IoT and systems.

4,658

4,000

2,000

domestic cash distribution• Provide comprehensive solutions for

DX in Stationed Security
128.8

Our involvement with transportation security services beganwith the transportation of bills, which was then developed
into a service to suit the times and released into the market.
We are enhancing our response to changes occurring
throughout the environment such as moves to cashless
payment systems, in order to leverage our comprehensive
capabilities.
We will continue to make use of the transportation
security platform to support social infrastructure through ourcomprehensive solutions, including cash-related operations.

• Establish a solid presence as a supplier of

TOPICSNet Sales“Initiatives” for achieving our Vision

Our Vision

ALSOK’s stationed security has progressed from human-based
security to security tailored to the needs of society and customers
through the use of equipment and systems.
In light of growing labor shortages going forward, we are aiming toprovide high-quality security services, with efficiency and labor-saving
operations through the introduction of state-of-the-art equipment
including AI and robots, expanding service details by assigning security
guards equipped with sensors, and promoting the acquisition ofvarious certifications.
We will leverage our mobilization capabilities as one of the industry’s
leading companies and contribute to various types of events.

2019

2020

2021

2022

2023

(FY)

* “Demonstrated Security” ...effective of security guards in uniform for preventing crime

20

Materiality Topics

Materiality Topics

Security for events around Japan (festivals, etc.)

Revision of cash transport vehicle accessories*and shift to HVs

Fireworks festivals and sports events that had been put on hold at the height of COVID-19 are resuming in full swing.
With severe labor shortages across the security industry, ALSOK is leveraging its collaborative strengths throughout theGroup to provide a reliable service. With concerns over outbreaks at large gatherings, we are contributing to local
communities through safe and secure event operation.

Vehicles used for transportation security services are heavy due to requiring a high level of robustness, and improving fuelefficiency was a challenge. We have focused our efforts on achieving both vehicle safety and a lighter weight, and using
eco-friendly vehicles to as a means of reducing CO2 emissions.

Contributing to Local
Communities throughActive Communication(→P.38)* Accessories installed on vehicles, etc.

Consideration for
the Global Environment(→P.40)ALSOK REPORT 2023

21

ALSOK’s Story of Value Creation

ALSOK’s Story of Value Creation

General Property Management and Fire Protection Services

Long-term Care Services

Facility Management Department

Long-term Care Business Department

Business Details

Business Details
Total support business covering building construction, maintenance, operation and management, from reducing management
costs of various facilities like buildings and condominiums to maintaining and enhancing the value of assets, through maintenance,
repair and renewal of building facilities, fire and disaster prevention, facility management, cleaning and sanitation management,
plumbing installation and electrical installation. It also sells disaster prevention and infectious disease control supplies, and AEDs.
In the fire protection business, we have strengthened our business promotion system in the fire and disaster prevention field byentering 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, as well as undertaking joint development
and sales of new products tailored to meet customers’ increasingly diverse needs.

“Initiatives” for achieving our Vision

Our Vision

We have expanded the scope of our services to respond to a wide
range of needs concerning the maintenance, operation andmanagement of customer assets. Building on our forte honed withelectronic security of being able to quickly detect anomalies withcustomer facilities, we are enhancing the coordination of
information within the Group to provide a one-stop service
covering repairs of facilities through to inspections and upgrades.
We are pushing ahead with efforts toward more efficient andlabor-saving operations for various inspections, in line withgovernment’s moves to abolish “analog regulations” that impede
the transition to digital platforms.
Yo Taga General Manager, Facility Management Department• “Integrating security, facilities andconstruction” by leveraging strengths
as a security company• Promoting DX for facilities inspections withthe aim of optimizing costs

Expectations from society• Level of responsiveness and trust that only

a security company can provide• One-stop, all-inclusive management for

security and facility management

Net Sales

Contributing to customers’ decarbonization
initiatives and BCP measures

72.9
69.2

70

68.1

68.1

62.9
60

0

2019

2020

2021

2022

2023

(FY)

We concluded an agreement with a total of seven companies*1
including leasing companies and those handling reusable
batteries that have partnered up to accelerate initiatives toward
decarbonization by utilizing EVs, EV charging facilities and solar
carports*2 with the view to contributing to BCP measures.
*1 The Toho Bank, Ltd. The Toho Lease Co., Ltd., NIPPON CAR SOLUTIONS, CO., LTD.,
4R Energy Corporation, Fukushima Nissan Motor Co. Ltd., ALSOK Souei Co., Ltd.,ALSOK Fukushima Co., Ltd.
*2 Carport with solar panels installed on the roof

Number of Contracts(1,000 contracts)
140

119
104

109

122

113

100

2019

2020

2021

2022

2023

(FY)

every customer• Support customers with their own type of lifestyle• Gain the confidence of customers and also

respond to trust placed on us by society

Expectations from society• Nursing services with a priority on the safety andsecurity that only a security company can provide• Expansion of high-quality nursing service

facilities coexisting with local communities• Provision of total care service that noneother can provide, from monitoring (security)
to home-based or facility-based care

Kaname Yubisui

We found it difficult trying to secureagreements, as we handle new initiatives andproducts. After we did conclude agreements,
we coordinate efforts with the core company
The Toho Lease Co., Ltd. while focusing on
expanding business through the installationof EV charging stations and solar carports at
city offices.

Katsuhiko Mukai, ALSOK Fukushima Co., Ltd.

40.3

41.6

2021

2022

40

26.5

28.1

2019

2020

20

Service details• Home-visit medical massage

services• Sale and rental of equipment

for long-term care covered bypublic aid (nursing care beds,
wheelchairs, etc.)

ALSOK CARE CO., LTD.
Life Co., Ltd.
ALSOK Joy Life Co., Ltd.
ALSOK Life Support Co., Ltd.
Care Plus Co., Ltd.
ALSOK CARE CO., LTD.
ALSOK Joy Life Co., Ltd.
ALSOK Life Support Co., Ltd.
Nippon Care Supply Co., Ltd.

Promoting initiatives for ESG/SDGs by utilizing energy-saving
and energy-creating products

Scientific approach to the nursing care field
Consideration for
the Global Environment(→P.40)(FY)

ProvidersMateriality Topics

Providing Products and Services
That Help Resolve Social Issues(→P. 30)

2023

Service details and providers• Home, facility, home-visit, etc.

Photo

Implementing DX for nursing care

47.4

0

General Manager, Long-term Care Business Department

TOPICS(billions of yen)
60

Materiality Topics

We are helping to advance our customers’ ESG initiatives by making use of various
subsidy schemes and leveraging our specialist knowledge to propose energy-saving
and energy-creating products that meet the needs of customers.

22

Security systems are installed at nursing care facilities, whereguards rush to the venue in the event of an emergency. We arealso progressing with the installation of security cameras and IT,
robot and other systems, to provide a high-quality service andreduce the burden on nursing care personnel.
We are also enhancing our total support business to provide
services that ensure safety and peace of mind for the elderly,with household support such as assisting with shopping
errands, as well as partnering with medical institutions for healthrehabilitation services aimed at enhancing physical capabilities.

• Working closely with integrity with each andStaff Comment

120

0“Initiatives” for achieving our Vision

Our Vision

Net Sales

TOPICS(billions of yen)80

We provide a wide range of services, from home-based nursing care support (creating care plans) andhome-based nursing services such as home-visit long-term care, home-visit nursing, and day-careservices for residents of specified facilities (pay-for-care homes with nursing care), communal living carefor 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 medical massage
services for home-care patients.

We are working to advance our care services through ICT
and data owned by our Group’s nursing care facilities, withthe aim of improving operations and enhancing quality by
optimizing care management.
By streamlining business processes at facilities, we areaiming to “improve quality of nursing care services” and“improve operational efficiency and reduce the burden on
personnel,” thus helping to resolve issues throughout thenursing care industry.
Staff Comment

Focusing on the roll-out of DX directly leads toan increase in the performance of personnel
and reduction in human error by lowering theburden placed on them. We will be enhancing
our operations by rolling out DX to improve
service quality, with the aim of providing“positive impressions” to our customers.

Photo

Shimpei Hatanaka, Long-Term Care Business Department

Attending to the end-of-life care calls for an organizational approach, as it requires the tacit skills of experienced nursing carestaff. We are developing a “Total Care Package” comprising a scientifically based nursing and care service established through Providing Products and Services
joint research with incorporated national universities, to predict the need for hospitalization and avoid, reduce or respond toThat Help Resolve Social Issues
emergency events through AI analysis and standardization of nursing care personnel at a high level.
(→P. 30)

ALSOK REPORT 2023

23

ALSOK’s Story of Value Creation

ALSOK’s Story of Value Creation

General Property Management and Fire Protection Services

Long-term Care Services

Facility Management Department

Long-term Care Business Department

Business Details

Business Details
Total support business covering building construction, maintenance, operation and management, from reducing management
costs of various facilities like buildings and condominiums to maintaining and enhancing the value of assets, through maintenance,
repair and renewal of building facilities, fire and disaster prevention, facility management, cleaning and sanitation management,
plumbing installation and electrical installation. It also sells disaster prevention and infectious disease control supplies, and AEDs.
In the fire protection business, we have strengthened our business promotion system in the fire and disaster prevention field byentering 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, as well as undertaking joint development
and sales of new products tailored to meet customers’ increasingly diverse needs.

“Initiatives” for achieving our Vision

Our Vision

We have expanded the scope of our services to respond to a wide
range of needs concerning the maintenance, operation andmanagement of customer assets. Building on our forte honed withelectronic security of being able to quickly detect anomalies withcustomer facilities, we are enhancing the coordination of
information within the Group to provide a one-stop service
covering repairs of facilities through to inspections and upgrades.
We are pushing ahead with efforts toward more efficient andlabor-saving operations for various inspections, in line withgovernment’s moves to abolish “analog regulations” that impede
the transition to digital platforms.
Yo Taga General Manager, Facility Management Department• “Integrating security, facilities andconstruction” by leveraging strengths
as a security company• Promoting DX for facilities inspections withthe aim of optimizing costs

Expectations from society• Level of responsiveness and trust that only

a security company can provide• One-stop, all-inclusive management for

security and facility management

Net Sales

Contributing to customers’ decarbonization
initiatives and BCP measures

72.9
69.2

70

68.1

68.1

62.9
60

0

2019

2020

2021

2022

2023

(FY)

We concluded an agreement with a total of seven companies*1
including leasing companies and those handling reusable
batteries that have partnered up to accelerate initiatives toward
decarbonization by utilizing EVs, EV charging facilities and solar
carports*2 with the view to contributing to BCP measures.
*1 The Toho Bank, Ltd. The Toho Lease Co., Ltd., NIPPON CAR SOLUTIONS, CO., LTD.,
4R Energy Corporation, Fukushima Nissan Motor Co. Ltd., ALSOK Souei Co., Ltd.,ALSOK Fukushima Co., Ltd.
*2 Carport with solar panels installed on the roof

Number of Contracts(1,000 contracts)
140

119
104

109

122

113

100

2019

2020

2021

2022

2023

(FY)

every customer• Support customers with their own type of lifestyle• Gain the confidence of customers and also

respond to trust placed on us by society

Expectations from society• Nursing services with a priority on the safety andsecurity that only a security company can provide• Expansion of high-quality nursing service

facilities coexisting with local communities• Provision of total care service that noneother can provide, from monitoring (security)
to home-based or facility-based care

Kaname Yubisui

We found it difficult trying to secureagreements, as we handle new initiatives andproducts. After we did conclude agreements,
we coordinate efforts with the core company
The Toho Lease Co., Ltd. while focusing on
expanding business through the installationof EV charging stations and solar carports at
city offices.

Katsuhiko Mukai, ALSOK Fukushima Co., Ltd.

40.3

41.6

2021

2022

40

26.5

28.1

2019

2020

20

Service details• Home-visit medical massage

services• Sale and rental of equipment

for long-term care covered bypublic aid (nursing care beds,
wheelchairs, etc.)

ALSOK CARE CO., LTD.
Life Co., Ltd.
ALSOK Joy Life Co., Ltd.
ALSOK Life Support Co., Ltd.
Care Plus Co., Ltd.
ALSOK CARE CO., LTD.
ALSOK Joy Life Co., Ltd.
ALSOK Life Support Co., Ltd.
Nippon Care Supply Co., Ltd.

Promoting initiatives for ESG/SDGs by utilizing energy-saving
and energy-creating products

Scientific approach to the nursing care field
Consideration for
the Global Environment(→P.40)(FY)

ProvidersMateriality Topics

Providing Products and Services
That Help Resolve Social Issues(→P. 30)

2023

Service details and providers• Home, facility, home-visit, etc.

Photo

Implementing DX for nursing care

47.4

0

General Manager, Long-term Care Business Department

TOPICS(billions of yen)
60

Materiality Topics

We are helping to advance our customers’ ESG initiatives by making use of various
subsidy schemes and leveraging our specialist knowledge to propose energy-saving
and energy-creating products that meet the needs of customers.

22

Security systems are installed at nursing care facilities, whereguards rush to the venue in the event of an emergency. We arealso progressing with the installation of security cameras and IT,
robot and other systems, to provide a high-quality service andreduce the burden on nursing care personnel.
We are also enhancing our total support business to provide
services that ensure safety and peace of mind for the elderly,with household support such as assisting with shopping
errands, as well as partnering with medical institutions for healthrehabilitation services aimed at enhancing physical capabilities.

• Working closely with integrity with each andStaff Comment

120

0“Initiatives” for achieving our Vision

Our Vision

Net Sales

TOPICS(billions of yen)80

We provide a wide range of services, from home-based nursing care support (creating care plans) andhome-based nursing services such as home-visit long-term care, home-visit nursing, and day-careservices for residents of specified facilities (pay-for-care homes with nursing care), communal living carefor 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 medical massage
services for home-care patients.

We are working to advance our care services through ICT
and data owned by our Group’s nursing care facilities, withthe aim of improving operations and enhancing quality by
optimizing care management.
By streamlining business processes at facilities, we areaiming to “improve quality of nursing care services” and“improve operational efficiency and reduce the burden on
personnel,” thus helping to resolve issues throughout thenursing care industry.
Staff Comment

Focusing on the roll-out of DX directly leads toan increase in the performance of personnel
and reduction in human error by lowering theburden placed on them. We will be enhancing
our operations by rolling out DX to improve
service quality, with the aim of providing“positive impressions” to our customers.

Photo

Shimpei Hatanaka, Long-Term Care Business Department

Attending to the end-of-life care calls for an organizational approach, as it requires the tacit skills of experienced nursing carestaff. We are developing a “Total Care Package” comprising a scientifically based nursing and care service established through Providing Products and Services
joint research with incorporated national universities, to predict the need for hospitalization and avoid, reduce or respond toThat Help Resolve Social Issues
emergency events through AI analysis and standardization of nursing care personnel at a high level.
(→P. 30)

ALSOK REPORT 2023

23

ALSOK’s Story of Value Creation

ALSOK’s Story of Value Creation

Overseas BusinessMedium-Term Management Plan (April 2021 to March 2026)

International Affairs Department

To meet the expanding needs for safety and security in a society where risks arediversifying, ALSOK will promote the innovation of its security business model and aims tobecome a resilient integrated safety and security solutions provider.

ALSOK’s Aim

Business Details
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 seven countries: Thailand, Vietnam, China,
Indonesia, India, Myanmar, and Bangladesh.
We are currently expanding our business domain not only to provide security consulting, Stationed security services, andElectronic 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.

Basic Policies and Initiatives(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
Initiatives“Initiatives” for achieving our Vision

Our Vision• Globalization of the “ALSOK Way” to contributeto customers’ growth throughout Asia
• Develop Overseas Businesses as core businessfields taking ALSOK into the future

Expectations from society• Support for business continuity to contribute thesafety and security of customers throughout Asia
• Provision of a substitute first line of response

service in countries lacking in infrastructure to
respond to crime and disaster• Contribution to labor shortages andcapital-intensive approaches

We are supporting our customers’ business continuity byblending the needs of customers in countries with different
levels of safety and economies, with the level of service
provided in Japan. In countries lacking the infrastructure to
respond to crime or disasters, providing a substitute firstline of response service can help prevent the spread ofdamage, as we focus on creating a society that leads to asafer and more secure society.
Maya Osaki(billions of yen)
8

6.3
6

4

3.6

4.1

4.3

5.0

2

0

2019

2020

2021

2022

2023

(FY)

Materiality Topics
Recycled material collection service to prevent
unauthorized trading (India)
In India, scrap metal arising throughout the manufacturing sector
often ends up on the black market and traded illegally by agents,
which has become a social problem.
In light of these circumstances, ALSOK India provides a “Recycledmaterial collection service to prevent unauthorized trading” where
scrap is purchased for a reasonable price and delivered to recycling
operators, as a way of helping to resolve this issue present inIndian society.

Providing Products and Services
That Help Resolve Social Issues(→P. 30)

24

Digitization

Stock of PT. Shield-On Service Tbk (SOS), a company listedon the Indonesia stock exchange that provides security, FM,staff dispatching, and parking area management services,
was acquired in August 2023. More than being able toprovide services across the vast area of all of Indonesia,
operations were expanded as a comprehensive outsourcing
business covering security as well as staff dispatching,cleaning services, and parking area management.
Going forward, we will be establishing schemes to provide
training for employees in Japan to improve SOS service
quality, and increasing mobility of human resources
throughout the entire ALSOK Group.
Staff Comment

We made an effort to have local staff gain an understanding of
the approach taken by ALSOK and Japanese people, while
respecting the regulations, laws, culture, and approaches inIndonesia.
While there are some areas that cannot be compromised,
respecting the other person instead of only forcing ALSOK’sviews on them is vital for building a good relationship of trust withpartners.
To recognize ALSOK name more not only in Indonesia but also
throughout Asia as a whole with this stock acquisition, the head
office, local subsidiaries, Japanese personnel and Indonesia
personnel will work together as one with theaim of achieving drastic growth.
Hiroshi Iwai
President and Director
PT. ALSOK BASS Indonesia Security Services
PT. Shield-On Service Tbk• Enhancement of communication with customers• Optimization and manpower savings of operations• Complement of functions by digital technology• Analysis of collected data

Utilization of
Initiatives• Data coordination with external organizations• DX in Stationed security(3) Establishing a work environment where employees play an active role
Diversifying human resources • Recruit of diverse human resources • Provision of diverse work styles • Capability development
Initiatives

Strengthening business development throughout ASEANNet Sales• HOME ALSOK Connect® (launched in April 2023)(2) Digitization and utilization of data

General Manager, International Affairs Department

TOPICS• ALSOK IT Rescue (launched in March 2023)• Increased base (10 consecutive years)• Strengthen group cooperation in hiring activities (E.g.: UIJ turn applicants)(4) Strengthen the efforts of sustainability• Enhancement of governanceInitiatives• Approach to the SDGs

• Approach to environmental issues

E: TCFD information disclosure (October 2022), calculation of Scope3 (2022)
S: Signatory to the UN Global Compact (April 2023)
G: Established Nomination and Remuneration Committee (February 2023)
and Quality Management Department (April 2023)

Financial Goals
Performance (FY2023)

Targets (FY2026)

Consolidated net sales ¥492.2 billion

Approx. ¥650.0 billion

Payout ratio of 30% as atarget to maintain a stabledividend

Consolidated ordinary income ¥39.2 billion

Approx. ¥65.0 billion

Future Targets

Consolidated ordinary income to sales 8.0%

10% or more
10% or more

ROE

7.8%

Specific Initiatives

Net sales: Approx. ¥1 trillion
Income: Approx. ¥100 billion

Investment Plan (based on cash flow)
Item

FY2022–FY2026

Research and development,
digital-related investments, etc.

¥70.0 billion

M&A, etc.

¥50.0 billion

FY2022–FY2026 increase in cash

Approx.
¥110 billion

ALSOK agility × DX

ALSOK IT Rescue
The “ALSOK IT Rescue” service was launched in March 2023.
Interviews held with customers in the small business sector indicated that issues
concerning downtime due to supervisor workload and computer problem needed tobe addressed, with feedback including “There is no contact point when we face
IT-related issues.”
This service provides emergency response when contracted customers are
suffering from IT problems, by dispatching our guards to affected sites.
The guards arriving on the scene make use of video calls and remote access tools
to coordinate efforts with specialist personnel at the IT Rescue Center to respond to
conditions on the site—this service is available 24 hours a day, 7 days a week to getthings quickly back on track.

Briefing sessions and videos were used tooutline service details and how the IT
Rescue Center coordinates efforts,
to overcome any
insecurities
experienced byguards arriving at thescene. We alsoenhanced systems forconveying details ofcustomer requests
faster to guards.

Akira Terui

Electronic Security Department

ALSOK REPORT 2023

25

ALSOK’s Story of Value Creation

ALSOK’s Story of Value Creation

Overseas BusinessMedium-Term Management Plan (April 2021 to March 2026)

International Affairs Department

To meet the expanding needs for safety and security in a society where risks arediversifying, ALSOK will promote the innovation of its security business model and aims tobecome a resilient integrated safety and security solutions provider.

ALSOK’s Aim

Business Details
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 seven countries: Thailand, Vietnam, China,
Indonesia, India, Myanmar, and Bangladesh.
We are currently expanding our business domain not only to provide security consulting, Stationed security services, andElectronic 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.

Basic Policies and Initiatives(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
Initiatives“Initiatives” for achieving our Vision

Our Vision• Globalization of the “ALSOK Way” to contributeto customers’ growth throughout Asia
• Develop Overseas Businesses as core businessfields taking ALSOK into the future

Expectations from society• Support for business continuity to contribute thesafety and security of customers throughout Asia
• Provision of a substitute first line of response

service in countries lacking in infrastructure to
respond to crime and disaster• Contribution to labor shortages andcapital-intensive approaches

We are supporting our customers’ business continuity byblending the needs of customers in countries with different
levels of safety and economies, with the level of service
provided in Japan. In countries lacking the infrastructure to
respond to crime or disasters, providing a substitute firstline of response service can help prevent the spread ofdamage, as we focus on creating a society that leads to asafer and more secure society.
Maya Osaki(billions of yen)
8

6.3
6

4

3.6

4.1

4.3

5.0

2

0

2019

2020

2021

2022

2023

(FY)

Materiality Topics
Recycled material collection service to prevent
unauthorized trading (India)
In India, scrap metal arising throughout the manufacturing sector
often ends up on the black market and traded illegally by agents,
which has become a social problem.
In light of these circumstances, ALSOK India provides a “Recycledmaterial collection service to prevent unauthorized trading” where
scrap is purchased for a reasonable price and delivered to recycling
operators, as a way of helping to resolve this issue present inIndian society.

Providing Products and Services
That Help Resolve Social Issues(→P. 30)

24

Digitization

Stock of PT. Shield-On Service Tbk (SOS), a company listedon the Indonesia stock exchange that provides security, FM,staff dispatching, and parking area management services,
was acquired in August 2023. More than being able toprovide services across the vast area of all of Indonesia,
operations were expanded as a comprehensive outsourcing
business covering security as well as staff dispatching,cleaning services, and parking area management.
Going forward, we will be establishing schemes to provide
training for employees in Japan to improve SOS service
quality, and increasing mobility of human resources
throughout the entire ALSOK Group.
Staff Comment

We made an effort to have local staff gain an understanding of
the approach taken by ALSOK and Japanese people, while
respecting the regulations, laws, culture, and approaches inIndonesia.
While there are some areas that cannot be compromised,
respecting the other person instead of only forcing ALSOK’sviews on them is vital for building a good relationship of trust withpartners.
To recognize ALSOK name more not only in Indonesia but also
throughout Asia as a whole with this stock acquisition, the head
office, local subsidiaries, Japanese personnel and Indonesia
personnel will work together as one with theaim of achieving drastic growth.
Hiroshi Iwai
President and Director
PT. ALSOK BASS Indonesia Security Services
PT. Shield-On Service Tbk• Enhancement of communication with customers• Optimization and manpower savings of operations• Complement of functions by digital technology• Analysis of collected data

Utilization of
Initiatives• Data coordination with external organizations• DX in Stationed security(3) Establishing a work environment where employees play an active role
Diversifying human resources • Recruit of diverse human resources • Provision of diverse work styles • Capability development
Initiatives

Strengthening business development throughout ASEANNet Sales• HOME ALSOK Connect® (launched in April 2023)(2) Digitization and utilization of data

General Manager, International Affairs Department

TOPICS• ALSOK IT Rescue (launched in March 2023)• Increased base (10 consecutive years)• Strengthen group cooperation in hiring activities (E.g.: UIJ turn applicants)(4) Strengthen the efforts of sustainability• Enhancement of governanceInitiatives• Approach to the SDGs

• Approach to environmental issues

E: TCFD information disclosure (October 2022), calculation of Scope3 (2022)
S: Signatory to the UN Global Compact (April 2023)
G: Established Nomination and Remuneration Committee (February 2023)
and Quality Management Department (April 2023)

Financial Goals
Performance (FY2023)

Targets (FY2026)

Consolidated net sales ¥492.2 billion

Approx. ¥650.0 billion

Payout ratio of 30% as atarget to maintain a stabledividend

Consolidated ordinary income ¥39.2 billion

Approx. ¥65.0 billion

Future Targets

Consolidated ordinary income to sales 8.0%

10% or more
10% or more

ROE

7.8%

Specific Initiatives

Net sales: Approx. ¥1 trillion
Income: Approx. ¥100 billion

Investment Plan (based on cash flow)
Item

FY2022–FY2026

Research and development,
digital-related investments, etc.

¥70.0 billion

M&A, etc.

¥50.0 billion

FY2022–FY2026 increase in cash

Approx.
¥110 billion

ALSOK agility × DX

ALSOK IT Rescue
The “ALSOK IT Rescue” service was launched in March 2023.
Interviews held with customers in the small business sector indicated that issues
concerning downtime due to supervisor workload and computer problem needed tobe addressed, with feedback including “There is no contact point when we face
IT-related issues.”
This service provides emergency response when contracted customers are
suffering from IT problems, by dispatching our guards to affected sites.
The guards arriving on the scene make use of video calls and remote access tools
to coordinate efforts with specialist personnel at the IT Rescue Center to respond to
conditions on the site—this service is available 24 hours a day, 7 days a week to getthings quickly back on track.

Briefing sessions and videos were used tooutline service details and how the IT
Rescue Center coordinates efforts,
to overcome any
insecurities
experienced byguards arriving at thescene. We alsoenhanced systems forconveying details ofcustomer requests
faster to guards.

Akira Terui

Electronic Security Department

ALSOK REPORT 2023

25

Sustainability and ESG

Sustainability and CSR Management
ALSOK Materiality

Social Issues and SDGs of Focus

ALSOK believes that practicing our Management Philosophy exemplified by the principles of “arigato no kokoro” (a feeling ofgratefulness and gratitude) and “bushi no seishin” (a samurai spirit) in response to requests from all stakeholders including customers
and local communities leads to sustainability and CSR for our whole group.
We have identified five themes as Materiality (important issues) in the promotion of sustainability and CSR activities in keeping with
our Management Philosophy. As a company that helps sustain social infrastructure, we will advance initiatives with respect toMateriality as we work to solve social issues and sustainably enhance our corporate value.

Priority Themes and Key Measures Based on Materiality

Five Material Issues(1) Providing Trustworthy Security Services
At ALSOK, we do our utmost to provide multifaceted security services that alleviate all concerns of customers facing diversified
and frequent criminal threats. In addition, as a company that develops businesses that protect the lives and assets of ourcustomers, we believe that providing high-quality products and services that satisfy our customers' trust is an important task ofmanagement, so we strive constantly to improve quality.

(2) Providing Products and Services 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.

Materiality

Social Issues and Demands from Society(1) Providing
Trustworthy
Security Services• Worsening of crime conditions and(2) Providing Products
and Services That
Help Resolve Social
Issues• Diversification of services in(3) Cultivating Human
Resources andBuilding a Comfortable
Workplace Environment(4) Contributing toLocal Communities
through Active
Communication

diversification of crimes due to theincreasing complexity of society• Heightened public awareness ofgovernance and compliancedemand among customers• Issues accompanying the recovery

from the COVID-19 pandemic• Response to aging social
infrastructure• The decline and aging of theworking-age population• Cultivating diverse talent• Balancing employee friendly working
environment and satisfying to work with
• Respect for diversity and human rights• Strengthening community-based crime anddisaster prevention volunteer systems• Reduced economic and social sustainability
due to declining population, shortage ofsuccessors and personnel• Working through our supply

chain to advance sustainability(3) Cultivating Human Resources and Buildinga Comfortable Workplace Environment(5) Consideration
for the Global
Environment

People are the key source of our corporate activities. To ensure that each one of our employees, who form the foundation forour sustainable corporate development, can maximize their abilities and work vigorously, we continue to build an environmentthat brings out their best performance through the promotion of work style reforms, diversity initiatives, and enhancement oftraining programs.

• Climate change countermeasures• Safeguarding biodiversity• Effective utilization of resources

Main Stakeholders(5) Consideration for the Global Environment
Based on the recognition that global environmental issues are common to all humankind, we take measures against climatechange, contribute to building a recycling-oriented society, and conserve biodiversity from the perspective of reducing
environmental impacts and preventing environmental pollution.
Environmental
PolicyCSR and Sustainability
Procurement Guidelines

26

ReportOversight

Environment
Committee

Sharing of information as
appropriate, after reports from
Board of Directors meetings

ReportOversight
ReportRisk Management
Committee

Consultation

Board of Directors
Management Committee

Provide integrated safety and security
solutions, meeting customers’
expectations by listening to their
voices• Providing products and services that meetchanging circumstances• Enhancing service quality and customer satisfaction• Acquisition of management system certifications• Improving the BCP framework

new needs• Integrating AI and the IoT with security• Various monitoring services utilizing DX tools• MIMAMORI services for the elderly andchildren• Introduction of nursing service by ALSOK

Achieve a workplace in which each andevery employee can achieve self-fulfillment,
fully apply their individual abilities, andvitally engage in rewarding work

• Improving employee education/training,

Leveraging core business to create
new value while contributing to thesafety and peace of mind of local
communities• Holding of various types of crime

Realize a sustainable society by
reinforcing frameworks ofcollaboration with various suppliers• Communicating with suppliers on aContributing to the realization of acarbon-neutral and circular society• Reducing energy usage and CO2 emissions• Responding to harmful animal and bird pests• Promoting of reuse of alarm equipment

work environments• Diversity promotion• Strengthening health management initiatives

prevention seminars• Art, culture, and sports promotion• Activities to support the next generation• Disaster relief and volunteering activities

regular basis• Survey of contractors

Value Provided by ALSOKSpecific Examples of Initiatives

Customers
Corporate: 556,000 contracts
Individuals: 473,000 contracts

Provide safety and security through our
high-quality products and services• Improvement of customer satisfaction through CS promotion

Employees
Number of employees: 39,039

Based on the belief that people are an importantsource of corporate activities, we provide anenvironment in which each and every employee canfully demonstrate their abilities and work energeticallyand develop their abilities• Enhancement of the education system

Shareholders and Other Investors
Financial institutions/Corporations: 35.4%
Other domestic corporations: 23.4% Foreign investors: 19.9%
Individuals/others: 18.4% Securities companies: 1.9%

Increase in stock price and provision ofshareholder returns by increasing
corporate value through sustainablegrowth as a resilient “integrated safety andsecurity solutions provider”• General Shareholders’ Meetings, results briefings

Business Partners
Number of business partners:
Approx. 860 companies

To solve various social issues, ALSOK andthe entire supply chain will work together
to achieve sustainable growth• Fair business practices(Non-consolidated: 12,041; Group: 26,998)

Framework for Sustainability and CSR Initiatives
We report on and discuss ALSOK's orientation to sustainability and CSR
initiatives, and the current status of group-wide action, at least once a
year at meetings of the Board of Directors and the Management
Committee. The responsible departments lead efforts in cooperation
with related departments to propose measures and act on them.
As the diagram at right indicates, information is also shared with eachcommittee to create a company-wide system to advance sustainability.

Suppress crime, prevent the spread ofdamage, and realize a robust security
service that is responsive toincreasingly complex threats andrelieves all anxieties

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

To give form to “arigato no kokoro” (a feeling of gratefulness and gratitude)—part of ALSOK’s fundamental spirit—the
Company acts as a good corporate citizen, diligently working to contribute to the resolution of the various issues faced by thecommunities it serves and contributes to the realization of a future in which everyone can live safely and securely.

Basic Sustainability
PolicyMain Initiatives• Providing services that are responsive toEngagement with Stakeholders(4) Contributing to Local Communities
Through Active Communication

Major Policies

VisionNomination andRemuneration
Committee• Quality and safety promotion initiatives• Provision of safety and security services• Dissemination of information through websites, SNS, etc.

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

• Issuance of integrated reports, securities reports, etc.
• Disclosure of business and other risks• Investor meetings, etc.

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

Local Communities and the Global Society
Japan (nationwide)
7 Countries worldwide

Contribute to the creation of a safe andsecure society by creating new solutions
centered on safety and security inresponse 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.

ALSOK REPORT 2023

27

Sustainability and ESG

Sustainability and CSR Management
ALSOK Materiality

Social Issues and SDGs of Focus

ALSOK believes that practicing our Management Philosophy exemplified by the principles of “arigato no kokoro” (a feeling ofgratefulness and gratitude) and “bushi no seishin” (a samurai spirit) in response to requests from all stakeholders including customers
and local communities leads to sustainability and CSR for our whole group.
We have identified five themes as Materiality (important issues) in the promotion of sustainability and CSR activities in keeping with
our Management Philosophy. As a company that helps sustain social infrastructure, we will advance initiatives with respect toMateriality as we work to solve social issues and sustainably enhance our corporate value.

Priority Themes and Key Measures Based on Materiality

Five Material Issues(1) Providing Trustworthy Security Services
At ALSOK, we do our utmost to provide multifaceted security services that alleviate all concerns of customers facing diversified
and frequent criminal threats. In addition, as a company that develops businesses that protect the lives and assets of ourcustomers, we believe that providing high-quality products and services that satisfy our customers' trust is an important task ofmanagement, so we strive constantly to improve quality.

(2) Providing Products and Services 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.

Materiality

Social Issues and Demands from Society(1) Providing
Trustworthy
Security Services• Worsening of crime conditions and(2) Providing Products
and Services That
Help Resolve Social
Issues• Diversification of services in(3) Cultivating Human
Resources andBuilding a Comfortable
Workplace Environment(4) Contributing toLocal Communities
through Active
Communication

diversification of crimes due to theincreasing complexity of society• Heightened public awareness ofgovernance and compliancedemand among customers• Issues accompanying the recovery

from the COVID-19 pandemic• Response to aging social
infrastructure• The decline and aging of theworking-age population• Cultivating diverse talent• Balancing employee friendly working
environment and satisfying to work with
• Respect for diversity and human rights• Strengthening community-based crime anddisaster prevention volunteer systems• Reduced economic and social sustainability
due to declining population, shortage ofsuccessors and personnel• Working through our supply

chain to advance sustainability(3) Cultivating Human Resources and Buildinga Comfortable Workplace Environment(5) Consideration
for the Global
Environment

People are the key source of our corporate activities. To ensure that each one of our employees, who form the foundation forour sustainable corporate development, can maximize their abilities and work vigorously, we continue to build an environmentthat brings out their best performance through the promotion of work style reforms, diversity initiatives, and enhancement oftraining programs.

• Climate change countermeasures• Safeguarding biodiversity• Effective utilization of resources

Main Stakeholders(5) Consideration for the Global Environment
Based on the recognition that global environmental issues are common to all humankind, we take measures against climatechange, contribute to building a recycling-oriented society, and conserve biodiversity from the perspective of reducing
environmental impacts and preventing environmental pollution.
Environmental
PolicyCSR and Sustainability
Procurement Guidelines

26

ReportOversight

Environment
Committee

Sharing of information as
appropriate, after reports from
Board of Directors meetings

ReportOversight
ReportRisk Management
Committee

Consultation

Board of Directors
Management Committee

Provide integrated safety and security
solutions, meeting customers’
expectations by listening to their
voices• Providing products and services that meetchanging circumstances• Enhancing service quality and customer satisfaction• Acquisition of management system certifications• Improving the BCP framework

new needs• Integrating AI and the IoT with security• Various monitoring services utilizing DX tools• MIMAMORI services for the elderly andchildren• Introduction of nursing service by ALSOK

Achieve a workplace in which each andevery employee can achieve self-fulfillment,
fully apply their individual abilities, andvitally engage in rewarding work

• Improving employee education/training,

Leveraging core business to create
new value while contributing to thesafety and peace of mind of local
communities• Holding of various types of crime

Realize a sustainable society by
reinforcing frameworks ofcollaboration with various suppliers• Communicating with suppliers on aContributing to the realization of acarbon-neutral and circular society• Reducing energy usage and CO2 emissions• Responding to harmful animal and bird pests• Promoting of reuse of alarm equipment

work environments• Diversity promotion• Strengthening health management initiatives

prevention seminars• Art, culture, and sports promotion• Activities to support the next generation• Disaster relief and volunteering activities

regular basis• Survey of contractors

Value Provided by ALSOKSpecific Examples of Initiatives

Customers
Corporate: 556,000 contracts
Individuals: 473,000 contracts

Provide safety and security through our
high-quality products and services• Improvement of customer satisfaction through CS promotion

Employees
Number of employees: 39,039

Based on the belief that people are an importantsource of corporate activities, we provide anenvironment in which each and every employee canfully demonstrate their abilities and work energeticallyand develop their abilities• Enhancement of the education system

Shareholders and Other Investors
Financial institutions/Corporations: 35.4%
Other domestic corporations: 23.4% Foreign investors: 19.9%
Individuals/others: 18.4% Securities companies: 1.9%

Increase in stock price and provision ofshareholder returns by increasing
corporate value through sustainablegrowth as a resilient “integrated safety andsecurity solutions provider”• General Shareholders’ Meetings, results briefings

Business Partners
Number of business partners:
Approx. 860 companies

To solve various social issues, ALSOK andthe entire supply chain will work together
to achieve sustainable growth• Fair business practices(Non-consolidated: 12,041; Group: 26,998)

Framework for Sustainability and CSR Initiatives
We report on and discuss ALSOK's orientation to sustainability and CSR
initiatives, and the current status of group-wide action, at least once a
year at meetings of the Board of Directors and the Management
Committee. The responsible departments lead efforts in cooperation
with related departments to propose measures and act on them.
As the diagram at right indicates, information is also shared with eachcommittee to create a company-wide system to advance sustainability.

Suppress crime, prevent the spread ofdamage, and realize a robust security
service that is responsive toincreasingly complex threats andrelieves all anxieties

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

To give form to “arigato no kokoro” (a feeling of gratefulness and gratitude)—part of ALSOK’s fundamental spirit—the
Company acts as a good corporate citizen, diligently working to contribute to the resolution of the various issues faced by thecommunities it serves and contributes to the realization of a future in which everyone can live safely and securely.

Basic Sustainability
PolicyMain Initiatives• Providing services that are responsive toEngagement with Stakeholders(4) Contributing to Local Communities
Through Active Communication

Major Policies

VisionNomination andRemuneration
Committee• Quality and safety promotion initiatives• Provision of safety and security services• Dissemination of information through websites, SNS, etc.

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

• Issuance of integrated reports, securities reports, etc.
• Disclosure of business and other risks• Investor meetings, etc.

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

Local Communities and the Global Society
Japan (nationwide)
7 Countries worldwide

Contribute to the creation of a safe andsecure society by creating new solutions
centered on safety and security inresponse 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.

ALSOK REPORT 2023

27

Sustainability and ESG

Providing Trustworthy Security Services―Quality Improvement Initiatives
Important Related Materiality

Improving Business Skills/Training

Because it is the nature of ALSOK's business to protect the lives and property of customers through our Security Services, General
Property Management and Fire Protection Services, as well as Long-Term Care Services, etc., we consider it an importantmanagement task to provide high-quality services that accommodate the intentions of our customers based on relationships of trust.
We are promoting initiatives for continuous quality improvement, such as using the feedback we collect from customers to improve
operations, developing a system by which we can provide employees with feedback, improving specialized expertise for each type ofbusiness, identifying risks that could impact our business and preparing for them, and acquiring various management system
certifications.

Initiatives for Safe Driving

Quality Improvement Initiatives

We undertake a variety of initiatives for safe driving by
employees who operate commercial automobiles andmotorcycles (two-wheeled and three-wheeled).

Every year, we hold the ALSOK Group Corporate Quality
Improvement Tournament to improve the quality of services
throughout the group with activities modeled on our actual
day-to-day work duties. In further developing the competition
by reviewing its purpose and improving its content, we aretightening the conditions on participation in fiscal 2023, andadding new competitions in efforts to improve each of theprofessional skills.
In the Long-Term Care Quality
Improvement Presentationcompetition, 9 teams from 6
group nursing care companies
participated. Based on ourbusiness philosophy, they maderemote presentations on how
their day-to-day results enable
them to offer the highest qualityof care services.

• Safe Driver Certification system• Driver Award System for Accident-free, Violation-free Driving• Driving recorders, automatic braking, lane departure

prevention assist systems, mandatory installation of back-up
sensors and other safety devices

Quality Management Department establishedThe reorganization of the Head Office in fiscal 2023 included the establishment of the Quality
Management Department for the purpose strengthening the services quality management function of theentire group.
In a change from the structure in place through fiscal 2022, with internal auditing and departments incharge of services, we have put in place a reinforced three-line structure with the addition of the Quality
Management Department to manage and improve service quality for the entire group.

When a traffic accident occurs, the department in charge
analyzes its causes and shares the information throughout thecompany to prevent recurrence.

Ideal for the Quality Management Department

We produce educational materials that summarize the history,
Management Philosophy, basic sustainability policy and otheraspects of ALSOK so that we can put in place a training
system for locally hired employees at overseas groupcompanies. By using common materials globally, translated
into the language of each country using expressions adapted
to local cultures, we help improve the quality of service
overseas.

Vision• Preventing fraud and misconduct• Strengthening compliance, promoting

integrity• Strengthening monitoring with data analysis

Issues and Needs• As an indirect management unit, the Quality Management Department

monitors (checks) and supports the Business Department, our primarybusiness entity, from an independent position.
• Our aim is to move business operations forward by having each of ourbusiness divisions collaborate with the Quality Management
Department in managing and taking responsibility for business execution.

• Providing high-quality services• Visualization, digitalization of services

Every one of us in the department will
do their utmost to ensure operational
quality that satisfies our customers.

Masataka Nagaoka General Manager of Quality Management Department

Aiming to Be No. 1 in Operational Quality
At the ALSOK Group, we aim to be No. 1 in operational quality, committing ourselves every day to improve under our mottoes of“Rush immediately to the scene” and “Instant response.” Toward improving quality, we will pursue the digital transformation (DX) of
operations as outlined in our Medium-term Management Plan GD2025, and further improve employee skill development throughcompetitive quality enhancement events.

Improving the Quality of Service That We Provide to Our Customers
Improving Business Operations Based on Customer
Feedback and Employee Awards
Feedback from customers, including their 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. We place particularimportance on complaints, understanding them as important
hints on how to improve our business operations. Through ourCustomer Service Promotion Committee, we work with each
responsible department to formulate measures to prevent
complaints from recurring.
Every six months, ALSOK presents awards to employees who
have contributed significantly to improving customer
satisfaction. Since we have had more awardees each year, we
revised the system to increase the number of award
nominations, which has also helped motivate more employees.
Complaints
Messages ofAppreciation
28

861 (+9% year on year)
3,259 (+44% year on year)

Feedback for Employees Using GST Cards
ALSOK has introduced the Good Service Thanks Card (GST)
to focus on the strong points of our employees and praise
aspects of excellence. Customer Cards are awarded foractions that boost customer satisfaction, while Colleague
Cards are awarded for actions that are exemplary forcoworkers.
(1) Customer Cards

19,369(Non-consolidated: 6,312; Group: 13,057)(2) Colleague Cards

73,175(Non-consolidated: 40,132; Group: 33,043)

Overseas Service Quality Enhancement

Training to Acquire Basic Life Support (BLS) Qualification
We sell AEDs at ALSOK, and we also provide in-housetraining, not just on how to use AEDs, but also BLS instructor
training courses for learning how to properly perform primary
lifesaving procedures. In fiscal 2022, we trained 254 BLS
instructors in a total of 11 training courses.

Quality Control Activities
Quality Control (QC) activities are carried out at work sites throughout Japan with the aim of improving productivity and raisingawareness of participation 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 inregional qualifiers. In addition, the Head Office presentations are held by the selected offices nationwide, and outstanding initiatives
are disclosed on the company intranet to promote the horizontal development of good practices.

Risk Preparedness (BCP)
It is predicted that an earthquake directly beneath the Tokyo metropolitan area will occur with a
70% probability within the next 30 years. To be prepared, we conduct comprehensive disaster
response drills.
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 the safety of employees. The drills are designed to strengthen
cooperation with the affected offices and group companies, foster disaster awareness, andimprove the ALSOK Group's overall disaster response capabilities.
We conduct safety confirmation drills for all employees not only as a part of comprehensive
disaster drills but also on a regular basis.

Comprehensive disaster response drill

Acquisition of Various Management System Certifications
Recognizing that interruptions of business activities have an impact on many stakeholders, ALSOK is strengthening its efforts byobtaining ISO 22301 certification based on its Business Continuity Plan (BCP) in preparation for emergencies such as large-scaledisasters and accidents.
We have also obtained certification for our quality management system (ISO 9001), information security management system (ISO27001), and environmental management system (ISO 14001) in order to improve business operations through the PDCA cycle.
Currently among our ALSOK Group companies, 65 companies have acquired ISO 9001 certification, 20 companies have acquired
ISO 27001 certification, and 74 companies have acquired ISO 14001 certification.

ALSOK REPORT 2023

29

Sustainability and ESG

Providing Trustworthy Security Services―Quality Improvement Initiatives
Important Related Materiality

Improving Business Skills/Training

Because it is the nature of ALSOK's business to protect the lives and property of customers through our Security Services, General
Property Management and Fire Protection Services, as well as Long-Term Care Services, etc., we consider it an importantmanagement task to provide high-quality services that accommodate the intentions of our customers based on relationships of trust.
We are promoting initiatives for continuous quality improvement, such as using the feedback we collect from customers to improve
operations, developing a system by which we can provide employees with feedback, improving specialized expertise for each type ofbusiness, identifying risks that could impact our business and preparing for them, and acquiring various management system
certifications.

Initiatives for Safe Driving

Quality Improvement Initiatives

We undertake a variety of initiatives for safe driving by
employees who operate commercial automobiles andmotorcycles (two-wheeled and three-wheeled).

Every year, we hold the ALSOK Group Corporate Quality
Improvement Tournament to improve the quality of services
throughout the group with activities modeled on our actual
day-to-day work duties. In further developing the competition
by reviewing its purpose and improving its content, we aretightening the conditions on participation in fiscal 2023, andadding new competitions in efforts to improve each of theprofessional skills.
In the Long-Term Care Quality
Improvement Presentationcompetition, 9 teams from 6
group nursing care companies
participated. Based on ourbusiness philosophy, they maderemote presentations on how
their day-to-day results enable
them to offer the highest qualityof care services.

• Safe Driver Certification system• Driver Award System for Accident-free, Violation-free Driving• Driving recorders, automatic braking, lane departure

prevention assist systems, mandatory installation of back-up
sensors and other safety devices

Quality Management Department establishedThe reorganization of the Head Office in fiscal 2023 included the establishment of the Quality
Management Department for the purpose strengthening the services quality management function of theentire group.
In a change from the structure in place through fiscal 2022, with internal auditing and departments incharge of services, we have put in place a reinforced three-line structure with the addition of the Quality
Management Department to manage and improve service quality for the entire group.

When a traffic accident occurs, the department in charge
analyzes its causes and shares the information throughout thecompany to prevent recurrence.

Ideal for the Quality Management Department

We produce educational materials that summarize the history,
Management Philosophy, basic sustainability policy and otheraspects of ALSOK so that we can put in place a training
system for locally hired employees at overseas groupcompanies. By using common materials globally, translated
into the language of each country using expressions adapted
to local cultures, we help improve the quality of service
overseas.

Vision• Preventing fraud and misconduct• Strengthening compliance, promoting

integrity• Strengthening monitoring with data analysis

Issues and Needs• As an indirect management unit, the Quality Management Department

monitors (checks) and supports the Business Department, our primarybusiness entity, from an independent position.
• Our aim is to move business operations forward by having each of ourbusiness divisions collaborate with the Quality Management
Department in managing and taking responsibility for business execution.

• Providing high-quality services• Visualization, digitalization of services

Every one of us in the department will
do their utmost to ensure operational
quality that satisfies our customers.

Masataka Nagaoka General Manager of Quality Management Department

Aiming to Be No. 1 in Operational Quality
At the ALSOK Group, we aim to be No. 1 in operational quality, committing ourselves every day to improve under our mottoes of“Rush immediately to the scene” and “Instant response.” Toward improving quality, we will pursue the digital transformation (DX) of
operations as outlined in our Medium-term Management Plan GD2025, and further improve employee skill development throughcompetitive quality enhancement events.

Improving the Quality of Service That We Provide to Our Customers
Improving Business Operations Based on Customer
Feedback and Employee Awards
Feedback from customers, including their 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. We place particularimportance on complaints, understanding them as important
hints on how to improve our business operations. Through ourCustomer Service Promotion Committee, we work with each
responsible department to formulate measures to prevent
complaints from recurring.
Every six months, ALSOK presents awards to employees who
have contributed significantly to improving customer
satisfaction. Since we have had more awardees each year, we
revised the system to increase the number of award
nominations, which has also helped motivate more employees.
Complaints
Messages ofAppreciation
28

861 (+9% year on year)
3,259 (+44% year on year)

Feedback for Employees Using GST Cards
ALSOK has introduced the Good Service Thanks Card (GST)
to focus on the strong points of our employees and praise
aspects of excellence. Customer Cards are awarded foractions that boost customer satisfaction, while Colleague
Cards are awarded for actions that are exemplary forcoworkers.
(1) Customer Cards

19,369(Non-consolidated: 6,312; Group: 13,057)(2) Colleague Cards

73,175(Non-consolidated: 40,132; Group: 33,043)

Overseas Service Quality Enhancement

Training to Acquire Basic Life Support (BLS) Qualification
We sell AEDs at ALSOK, and we also provide in-housetraining, not just on how to use AEDs, but also BLS instructor
training courses for learning how to properly perform primary
lifesaving procedures. In fiscal 2022, we trained 254 BLS
instructors in a total of 11 training courses.

Quality Control Activities
Quality Control (QC) activities are carried out at work sites throughout Japan with the aim of improving productivity and raisingawareness of participation 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 inregional qualifiers. In addition, the Head Office presentations are held by the selected offices nationwide, and outstanding initiatives
are disclosed on the company intranet to promote the horizontal development of good practices.

Risk Preparedness (BCP)
It is predicted that an earthquake directly beneath the Tokyo metropolitan area will occur with a
70% probability within the next 30 years. To be prepared, we conduct comprehensive disaster
response drills.
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 the safety of employees. The drills are designed to strengthen
cooperation with the affected offices and group companies, foster disaster awareness, andimprove the ALSOK Group's overall disaster response capabilities.
We conduct safety confirmation drills for all employees not only as a part of comprehensive
disaster drills but also on a regular basis.

Comprehensive disaster response drill

Acquisition of Various Management System Certifications
Recognizing that interruptions of business activities have an impact on many stakeholders, ALSOK is strengthening its efforts byobtaining ISO 22301 certification based on its Business Continuity Plan (BCP) in preparation for emergencies such as large-scaledisasters and accidents.
We have also obtained certification for our quality management system (ISO 9001), information security management system (ISO27001), and environmental management system (ISO 14001) in order to improve business operations through the PDCA cycle.
Currently among our ALSOK Group companies, 65 companies have acquired ISO 9001 certification, 20 companies have acquired
ISO 27001 certification, and 74 companies have acquired ISO 14001 certification.

ALSOK REPORT 2023

29

Sustainability and ESG

Providing Products and Services That Help Resolve Social Issues
Important Related Materiality

Products and Services That Help People Live in Safety and Security

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.

Providing New Home Security Services That Meet Diverse Needs

Products and Services That Help Resolve Social Issues
Work Style Reform Support Solutions Utilizing DX

Cloud connection

We have begun offering a service to support DX and work style reforms for automobile hauling carriers. Remote Status Check
Support Solution enables operators of vehicles with green license plate numbers, such as trucks, buses, and taxis, to perform rollcalls remotely instead of in person.
Remote Status Check Support Solution
In addition, stationed security services are
Cloud status check system
Roll call subject (driver)facing a wide range problems such as chronic
personnel shortages and aging of theMonitoring
Cloud rollDevice for checking
Cloud Roll
Monitoring
sobriety status
camerascall system
Call Systemcamerasworkforce, as well as analog management(alcohol detector)
methods. We are therefore positioning
Health status
Stationed DX as an initiative to use digitalmonitoring equipment(blood pressure meter, thermometer, etc.)
technology to boost stationed security service
Surveillance camera for fullproductivity while revising work tasks. Some ofbody image confirmation
our group companies have begun introducing(to prevent impersonation, misuse of alcohol detectors,
and performance of remote roll calldigital devices among their stationed security
from locations other than those specified)
Microphone
Speaker
Microphone
Speaker
service units in order to enhance productivity
Roll call results, failure history,
Biometric
Biometric recognition
records, sharing,recognition function
functionso that stationed security guards will be better
tamper-proofing,etc.
(prevention of impersonation)(prevention of impersonation)
able to perform their duties, while also
expanding the range of work they can take on.

Provision of a Town Security System that Utilizes AI
Fujisawa Sustainable Smart Town (Fujisawa SST) in Fujisawa
City, Kanagawa Prefecture, is a public-private partnership that
includes Panasonic, which offers advanced spatial solutions,other partner companies, and Fujisawa City. The project is an
initiative for innovation that continually gives rise to sustainable
and smart lifestyles. As a participant in the project, ALSOK is
helping to realize a style of security that works to achieve
peace of mind for residents by providing protection across a
set of factors it defines as: “space × city (surveillance cameras
and lighting) × home (home security) × people (security
concierge).”
In addition to Fujisawa SST, ALSOK has also been selected
as a security partner for Tsunashima SST (Yokohama City,
Kanagawa Prefecture), and Suita SST (Suita City, Osaka
Prefecture), all of the all SSTs that Panasonic is involved with,and is the only security company toparticipate in all the SSTs.

Launched in April 2023, HOME ALSOK Connect is available in the form of two plans. In addition to the conventional online security,
we also offer the Self-security plan, in which the customer is immediately notified when an anomaly occurs, then rushes assistance tothe scene upon request if on-site confirmation is desired. This has enabled the use of security by customers who were previously notinterested, or for whom cost was an impediment to adopting security measures. In addition, based on the Guidelines forEnvironmentally-Friendly Design that we established in 2022, we have been developing and designing environmentally friendly
devices, which consume about 1/4 or less* of the electric power used by conventional products.
In July 2022, we began new operation of an emergency notification system designed for municipalities. By combining thestrengths of security company ALSOK with those of call center service provider ALSOK Care ＆ Support Co., Ltd., this mode ofoperation makes it possible to offer operations that do not involve immediate security personnel dispatch, as well as those involving
responses by caregivers such as nurses. The service has been adopted by various
municipalities.
* Subject to change depending on conditions of use.

Emergency Notification
for Municipalities(ALSOK Group overall)

16,320
Cumulative number
83,577of contracts
Number of contracting
Approx. 500 Municipalities
municipalities

Orders taken (annual)

A New Approach to Providing Disaster-prevention
Stockpiles that Contributes to Reducing Food Loss

Contribution to Safe Operation of International Events

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 infood loss and possible disposal costs.
As a solution to this kind of social issue, ALSOK operates
the Social Contribution Based Disaster Stock Utilization
Service. Delivered disaster stockpiles are replaced with newones six months before their expiration dates, and those thatare 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 social issues.

Performance of Security Services for the G7 Hiroshima Summit

Fixed fees

Donations

Inventory (inspection)

For the G7 Hiroshima Summit held on May 19-21, 2023, we mobilized arecord high of 13,092 security personnel. It was the first G7 Summit held inJapan in seven years, at which we performed security and admissions
management operations using identification cards. We implemented
large-scale security services at many locations throughout the prefecture
for the G7 Hiroshima Summit, including the Grand Prince Hotel Hiroshimaon Ujina Island, which was the main summit venue. By building up a
security framework leveraging a range of inspection equipment andsurveillance systems, security dogs, security robots, and state-of-the-art
DX tools, we helped maintain overall security for the summit.

Large-scale security using state-of-the-art DX tools, etc.

Environmentally Friendly Products and Services
Recovery of CO2 Gas During Fire Extinguishing Equipment Inspections

Introduction of
fixed-fee stockpiles

Donation of
expiring stockpiles

Conducting inspectionsof stockpiles(once a year)

Stockpiles used in the event of a disaster
Replenishing stockpiles damaged by fire, theft, or flood

30

Affiliate Nippon Dry-Chemical Co., Ltd. provides a wide range of products
and systems concerning disaster prevention, from fire extinguishers to
firefighting equipment, firefighting motor vehicles, and even automatic fire
alarm equipment. This company aims to make a contribution to society byadvancing the effort toward a circular society, with systems in place tocollect and reuse gases such as CO2 and halogen that are used with
firefighting equipment.
In most cases, these gases are released into the atmosphere whenequipment is removed, disposed of or refilled, but Nippon Dry Chemical has
set up gas reclamation and filling facilities, making it possible to reclaim andreuse them. This is how we help make progress toward a circular society
and environmental protection by reducing greenhouse gas emissions.

Gas reclamation and filling facilities

ALSOK REPORT 2023

31

Sustainability and ESG

Providing Products and Services That Help Resolve Social Issues
Important Related Materiality

Products and Services That Help People Live in Safety and Security

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.

Providing New Home Security Services That Meet Diverse Needs

Products and Services That Help Resolve Social Issues
Work Style Reform Support Solutions Utilizing DX

Cloud connection

We have begun offering a service to support DX and work style reforms for automobile hauling carriers. Remote Status Check
Support Solution enables operators of vehicles with green license plate numbers, such as trucks, buses, and taxis, to perform rollcalls remotely instead of in person.
Remote Status Check Support Solution
In addition, stationed security services are
Cloud status check system
Roll call subject (driver)facing a wide range problems such as chronic
personnel shortages and aging of theMonitoring
Cloud rollDevice for checking
Cloud Roll
Monitoring
sobriety status
camerascall system
Call Systemcamerasworkforce, as well as analog management(alcohol detector)
methods. We are therefore positioning
Health status
Stationed DX as an initiative to use digitalmonitoring equipment(blood pressure meter, thermometer, etc.)
technology to boost stationed security service
Surveillance camera for fullproductivity while revising work tasks. Some ofbody image confirmation
our group companies have begun introducing(to prevent impersonation, misuse of alcohol detectors,
and performance of remote roll calldigital devices among their stationed security
from locations other than those specified)
Microphone
Speaker
Microphone
Speaker
service units in order to enhance productivity
Roll call results, failure history,
Biometric
Biometric recognition
records, sharing,recognition function
functionso that stationed security guards will be better
tamper-proofing,etc.
(prevention of impersonation)(prevention of impersonation)
able to perform their duties, while also
expanding the range of work they can take on.

Provision of a Town Security System that Utilizes AI
Fujisawa Sustainable Smart Town (Fujisawa SST) in Fujisawa
City, Kanagawa Prefecture, is a public-private partnership that
includes Panasonic, which offers advanced spatial solutions,other partner companies, and Fujisawa City. The project is an
initiative for innovation that continually gives rise to sustainable
and smart lifestyles. As a participant in the project, ALSOK is
helping to realize a style of security that works to achieve
peace of mind for residents by providing protection across a
set of factors it defines as: “space × city (surveillance cameras
and lighting) × home (home security) × people (security
concierge).”
In addition to Fujisawa SST, ALSOK has also been selected
as a security partner for Tsunashima SST (Yokohama City,
Kanagawa Prefecture), and Suita SST (Suita City, Osaka
Prefecture), all of the all SSTs that Panasonic is involved with,and is the only security company toparticipate in all the SSTs.

Launched in April 2023, HOME ALSOK Connect is available in the form of two plans. In addition to the conventional online security,
we also offer the Self-security plan, in which the customer is immediately notified when an anomaly occurs, then rushes assistance tothe scene upon request if on-site confirmation is desired. This has enabled the use of security by customers who were previously notinterested, or for whom cost was an impediment to adopting security measures. In addition, based on the Guidelines forEnvironmentally-Friendly Design that we established in 2022, we have been developing and designing environmentally friendly
devices, which consume about 1/4 or less* of the electric power used by conventional products.
In July 2022, we began new operation of an emergency notification system designed for municipalities. By combining thestrengths of security company ALSOK with those of call center service provider ALSOK Care ＆ Support Co., Ltd., this mode ofoperation makes it possible to offer operations that do not involve immediate security personnel dispatch, as well as those involving
responses by caregivers such as nurses. The service has been adopted by various
municipalities.
* Subject to change depending on conditions of use.

Emergency Notification
for Municipalities(ALSOK Group overall)

16,320
Cumulative number
83,577of contracts
Number of contracting
Approx. 500 Municipalities
municipalities

Orders taken (annual)

A New Approach to Providing Disaster-prevention
Stockpiles that Contributes to Reducing Food Loss

Contribution to Safe Operation of International Events

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 infood loss and possible disposal costs.
As a solution to this kind of social issue, ALSOK operates
the Social Contribution Based Disaster Stock Utilization
Service. Delivered disaster stockpiles are replaced with newones six months before their expiration dates, and those thatare 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 social issues.

Performance of Security Services for the G7 Hiroshima Summit

Fixed fees

Donations

Inventory (inspection)

For the G7 Hiroshima Summit held on May 19-21, 2023, we mobilized arecord high of 13,092 security personnel. It was the first G7 Summit held inJapan in seven years, at which we performed security and admissions
management operations using identification cards. We implemented
large-scale security services at many locations throughout the prefecture
for the G7 Hiroshima Summit, including the Grand Prince Hotel Hiroshimaon Ujina Island, which was the main summit venue. By building up a
security framework leveraging a range of inspection equipment andsurveillance systems, security dogs, security robots, and state-of-the-art
DX tools, we helped maintain overall security for the summit.

Large-scale security using state-of-the-art DX tools, etc.

Environmentally Friendly Products and Services
Recovery of CO2 Gas During Fire Extinguishing Equipment Inspections

Introduction of
fixed-fee stockpiles

Donation of
expiring stockpiles

Conducting inspectionsof stockpiles(once a year)

Stockpiles used in the event of a disaster
Replenishing stockpiles damaged by fire, theft, or flood

30

Affiliate Nippon Dry-Chemical Co., Ltd. provides a wide range of products
and systems concerning disaster prevention, from fire extinguishers to
firefighting equipment, firefighting motor vehicles, and even automatic fire
alarm equipment. This company aims to make a contribution to society byadvancing the effort toward a circular society, with systems in place tocollect and reuse gases such as CO2 and halogen that are used with
firefighting equipment.
In most cases, these gases are released into the atmosphere whenequipment is removed, disposed of or refilled, but Nippon Dry Chemical has
set up gas reclamation and filling facilities, making it possible to reclaim andreuse them. This is how we help make progress toward a circular society
and environmental protection by reducing greenhouse gas emissions.

Gas reclamation and filling facilities

ALSOK REPORT 2023

31

Sustainability and ESG

Providing Products and Services That Help Resolve Social Issues
Contributing to Safety and Security by Entering into Agreements with Local Government Authorities and Police Departments Throughout Japan

Diverse ALSOK Services Spread Across the Country and Throughout Asia

ALSOK makes use of its network of security bases situated at numerous locations throughout Japan as well as its mobility. By
entering agreements with local governments and the police, ALSOK is developing activities that contribute to the safety and securityof local communities nationwide.
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 concerning 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.

The ALSOK Group, which operates nationwide and throughout Asia, 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.

Toyama Prefecture•

Aomori Prefecture

Toyama Prefecture Declaration on SDGs•

Shiga Prefecture•

Comprehensive Collaboration Agreement

Hyogo Prefecture•

Akita Prefecture

Agreement on measures to prevent an
epidemic in the event of a serious outbreakof an infectious livestock disease••

Agreement regarding outsourcing work
to prevent an epidemic in the event of an
outbreak of an infectious livestock disease
Yamaguchi Prefecture•

Agreement on disaster evacuation center
management services

Aichi Prefecture•

Ibaraki Branch

ALSOK Yamagata

Utilizing drones during disasters, etc.

Safety device to keep shuttle buses
from being left unattended

Vehicle operation management

In the event of a natural disaster or otherserious and potentially life-threatening
incident, such as a missing-person case,we will respond promptly and reliably byrequest of the municipality, dispatching adrone team to check on damage ininaccessible areas,search for missing
persons, provide
audio evacuation
guidance fromabove, or perform
3D mapping, etc.,
as needed.

Following a tragic incident in which a preschool
child was left behind on a shuttle bus in Shizuoka
Prefecture, we have installed safety devices toprevent accidental abandonment on 132 shuttle
buses of Ibaraki Prefectural special needs schools.
A loud alarm sounds if the installed button is notpressed within 5 minutes after the engine is turnedoff, which prevents accidental abandonment bymaking post-trip inspection of the vehicle interior aregular practice.

We manage the operation of 4 vehicles owned by
Ogunimachi, Yamagata Prefecture for transporting
dialysis patients. We manage vehicle schedules fortransporting patients to their homes within the
town and to hospitals in neighboring municipalities,
inspect and clean the vehicles, and drive them.

Exterior vehicle speakers
Emergency
button

Vehicle exit
confirmation
buttonAichi SDGs Action

Chiba Prefecture

Community safety measures(prefectural police)•

Oita Prefecture•

Akita Prefecture SDGs Partner Agreement

Fukushima Prefecture

Hiroshima Prefecture•

Request for cooperation on special fraud
prevention activities (prefectural police)

Ehime Sohgo Security Service

Prefectural police cooperative agreement toensure local safety and security (prefectural police)

Agreement Regarding Monitoring of Senior
Citizens

ALSOK CARE

Kita-Kanto Sohgo Security Services

Toyama Prefecture Sohgo Security Services

Mie Prefecture

Licensed nursery schools

Security service operations for the National Sports Festival

Utility pole inspection services

SDGs Promotion Partner

We operate two “Kodomo no Ie Nursery” (Shiki
City, Saitama Prefecture) and two “Tanpopo
Nursery” (Funabashi City, Chiba Prefecture) as
licensed nursery schools for children from zeroyears old to preschool age, providing places
where children can grow up healthy and sound.

The 77th National Sports Festival of Japan washeld in Tochigi Prefecture, with cooperation froma total of 3,000 of our company employees, 1,000
employees from branches and group companies
in Fukushima, Gunma, Ibaraki, Saitama, andChiba Prefectures, and 3,000 employees of 25
Security Service Association member companies
and 5 companies from outside Prefecture.

We have been contracted by Hokuriku ElectricPower Company to inspect utility poles in Toyama
Prefecture. We perform inspection patrols to makesure that disruptions of the power supply do not
result from impediments such as crows nesting on
utility poles, or vines wrapping around them.

Collaboration Agreement for Building a Decarbonized Society and Local Economic Revitalization

SOHGO KANZAI Co., Ltd.

ALSOK SHIZUOKAIn 2022, ALSOK Fukushima Co., Ltd., ALSOK Soei Co., Ltd., and five other companies
signed a partnership agreement to advance efforts by customers toward decarbonization,and to contribute to BCP measures through the use of electric vehicles (EVs), charging
facilities, solar carports, and other facilities.
We will respond to the diverse needs of our customers, who are facing the requirementof reducing their environmental impact to achieve a sustainable society, as we help withthe decarbonization of society and the revitalization of local economies.

Collection and transportation of medical waste

A crowd control guard near the summit of Mt. Fuji

Cafeteria management service

From sites such as hospitals, we collect wastefrom medical treatments, such as needles,
vaccine ampules, infusion packs, and other wastematerials such as items with adhering blood andgrime, and transport them in sealed containers to
disposal sites. The ALSOK Group is also focusing
effort on the collection, transport and disposal ofindustrial waste attributable to us, such as alarm
equipment, cash
deposit machines,
and AEDs, and weare expanding ourcollection andtransportation areas
while building new
warehouse facilities.

During the busy season, particularly at the time that
Mt. Fuji opens for climbing each year, ALSOK security
personnel are deployed along the Fujinomiya andGotemba trails at the summit of Mt. Fuji, and atintermediate points between to warn climbers, guidethem to sunrise viewing points, and provide first aid tothose who are injured or have breathing difficulties.

In India, cafeteria management is one of
the tasks of facilities management, and anissue for companies because of a social
culture in which the degree of amplenessof lunch is reflected in engagement. We
therefore offer diverse services toJapanese-affiliated companies, ranging
from creating thelayouts ofcafeterias tomanaging them,as a way ofhelping increaseclient corporate
value.

•

Fukuoka Prefecture•

Agreement on epidemic prevention
support for foot-and-mouth disease, etc.

Wakayama Prefecture
Comprehensive collaboration agreement for raisingawareness of disaster prevention and crime prevention
Tokushima Prefecture•

Nagasaki Prefecture•

Nagasaki Prefecture SDG registration system

Ehime Prefecture••

Comprehensive collaboration agreement

Comprehensive collaboration agreement

Kagawa Prefecture••

Types of Agreements Concluded
Agreement on monitoring and crime prevention
Agreement regarding epidemic prevention
Agreement on SDGs
Comprehensive agreements/Multiple types of agreements

Agreement on Comprehensive Collaboration
Agreement on Creating Safe, Secure, Crime-freeCommunities (prefectural police)
Agreement regarding disaster prevention(as of March 2023)

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

EV charging facilities handled by ALSOK(example)

Epidemic prevention agreements with local governments
We provide support services for livestock epidemic prevention measures, including
disinfection work in the vicinity of avian influenza outbreaks. Each disinfection point is staffedby two to three people, and operates on a 24-hour basis. We have also entered into
agreements with some municipalities to provide support in the event of a livestock epidemic
outbreak.

32

ALSOK India

Performing disinfection work

ALSOK REPORT 2023

33

Sustainability and ESG

Providing Products and Services That Help Resolve Social Issues
Contributing to Safety and Security by Entering into Agreements with Local Government Authorities and Police Departments Throughout Japan

Diverse ALSOK Services Spread Across the Country and Throughout Asia

ALSOK makes use of its network of security bases situated at numerous locations throughout Japan as well as its mobility. By
entering agreements with local governments and the police, ALSOK is developing activities that contribute to the safety and securityof local communities nationwide.
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 concerning 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.

The ALSOK Group, which operates nationwide and throughout Asia, 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.

Toyama Prefecture•

Aomori Prefecture

Toyama Prefecture Declaration on SDGs•

Shiga Prefecture•

Comprehensive Collaboration Agreement

Hyogo Prefecture•

Akita Prefecture

Agreement on measures to prevent an
epidemic in the event of a serious outbreakof an infectious livestock disease••

Agreement regarding outsourcing work
to prevent an epidemic in the event of an
outbreak of an infectious livestock disease
Yamaguchi Prefecture•

Agreement on disaster evacuation center
management services

Aichi Prefecture•

Ibaraki Branch

ALSOK Yamagata

Utilizing drones during disasters, etc.

Safety device to keep shuttle buses
from being left unattended

Vehicle operation management

In the event of a natural disaster or otherserious and potentially life-threatening
incident, such as a missing-person case,we will respond promptly and reliably byrequest of the municipality, dispatching adrone team to check on damage ininaccessible areas,search for missing
persons, provide
audio evacuation
guidance fromabove, or perform
3D mapping, etc.,
as needed.

Following a tragic incident in which a preschool
child was left behind on a shuttle bus in Shizuoka
Prefecture, we have installed safety devices toprevent accidental abandonment on 132 shuttle
buses of Ibaraki Prefectural special needs schools.
A loud alarm sounds if the installed button is notpressed within 5 minutes after the engine is turnedoff, which prevents accidental abandonment bymaking post-trip inspection of the vehicle interior aregular practice.

We manage the operation of 4 vehicles owned by
Ogunimachi, Yamagata Prefecture for transporting
dialysis patients. We manage vehicle schedules fortransporting patients to their homes within the
town and to hospitals in neighboring municipalities,
inspect and clean the vehicles, and drive them.

Exterior vehicle speakers
Emergency
button

Vehicle exit
confirmation
buttonAichi SDGs Action

Chiba Prefecture

Community safety measures(prefectural police)•

Oita Prefecture•

Akita Prefecture SDGs Partner Agreement

Fukushima Prefecture

Hiroshima Prefecture•

Request for cooperation on special fraud
prevention activities (prefectural police)

Ehime Sohgo Security Service

Prefectural police cooperative agreement toensure local safety and security (prefectural police)

Agreement Regarding Monitoring of Senior
Citizens

ALSOK CARE

Kita-Kanto Sohgo Security Services

Toyama Prefecture Sohgo Security Services

Mie Prefecture

Licensed nursery schools

Security service operations for the National Sports Festival

Utility pole inspection services

SDGs Promotion Partner

We operate two “Kodomo no Ie Nursery” (Shiki
City, Saitama Prefecture) and two “Tanpopo
Nursery” (Funabashi City, Chiba Prefecture) as
licensed nursery schools for children from zeroyears old to preschool age, providing places
where children can grow up healthy and sound.

The 77th National Sports Festival of Japan washeld in Tochigi Prefecture, with cooperation froma total of 3,000 of our company employees, 1,000
employees from branches and group companies
in Fukushima, Gunma, Ibaraki, Saitama, andChiba Prefectures, and 3,000 employees of 25
Security Service Association member companies
and 5 companies from outside Prefecture.

We have been contracted by Hokuriku ElectricPower Company to inspect utility poles in Toyama
Prefecture. We perform inspection patrols to makesure that disruptions of the power supply do not
result from impediments such as crows nesting on
utility poles, or vines wrapping around them.

Collaboration Agreement for Building a Decarbonized Society and Local Economic Revitalization

SOHGO KANZAI Co., Ltd.

ALSOK SHIZUOKAIn 2022, ALSOK Fukushima Co., Ltd., ALSOK Soei Co., Ltd., and five other companies
signed a partnership agreement to advance efforts by customers toward decarbonization,and to contribute to BCP measures through the use of electric vehicles (EVs), charging
facilities, solar carports, and other facilities.
We will respond to the diverse needs of our customers, who are facing the requirementof reducing their environmental impact to achieve a sustainable society, as we help withthe decarbonization of society and the revitalization of local economies.

Collection and transportation of medical waste

A crowd control guard near the summit of Mt. Fuji

Cafeteria management service

From sites such as hospitals, we collect wastefrom medical treatments, such as needles,
vaccine ampules, infusion packs, and other wastematerials such as items with adhering blood andgrime, and transport them in sealed containers to
disposal sites. The ALSOK Group is also focusing
effort on the collection, transport and disposal ofindustrial waste attributable to us, such as alarm
equipment, cash
deposit machines,
and AEDs, and weare expanding ourcollection andtransportation areas
while building new
warehouse facilities.

During the busy season, particularly at the time that
Mt. Fuji opens for climbing each year, ALSOK security
personnel are deployed along the Fujinomiya andGotemba trails at the summit of Mt. Fuji, and atintermediate points between to warn climbers, guidethem to sunrise viewing points, and provide first aid tothose who are injured or have breathing difficulties.

In India, cafeteria management is one of
the tasks of facilities management, and anissue for companies because of a social
culture in which the degree of amplenessof lunch is reflected in engagement. We
therefore offer diverse services toJapanese-affiliated companies, ranging
from creating thelayouts ofcafeterias tomanaging them,as a way ofhelping increaseclient corporate
value.

•

Fukuoka Prefecture•

Agreement on epidemic prevention
support for foot-and-mouth disease, etc.

Wakayama Prefecture
Comprehensive collaboration agreement for raisingawareness of disaster prevention and crime prevention
Tokushima Prefecture•

Nagasaki Prefecture•

Nagasaki Prefecture SDG registration system

Ehime Prefecture••

Comprehensive collaboration agreement

Comprehensive collaboration agreement

Kagawa Prefecture••

Types of Agreements Concluded
Agreement on monitoring and crime prevention
Agreement regarding epidemic prevention
Agreement on SDGs
Comprehensive agreements/Multiple types of agreements

Agreement on Comprehensive Collaboration
Agreement on Creating Safe, Secure, Crime-freeCommunities (prefectural police)
Agreement regarding disaster prevention(as of March 2023)

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

EV charging facilities handled by ALSOK(example)

Epidemic prevention agreements with local governments
We provide support services for livestock epidemic prevention measures, including
disinfection work in the vicinity of avian influenza outbreaks. Each disinfection point is staffedby two to three people, and operates on a 24-hour basis. We have also entered into
agreements with some municipalities to provide support in the event of a livestock epidemic
outbreak.

32

ALSOK India

Performing disinfection work

ALSOK REPORT 2023

33

Sustainability and ESG

Cultivating Human Resources and Building a Comfortable Workplace Environment
Important Related Materiality

Work Style Reform and Work–Life Balance

Based on the fundamental concept of human resources as the most important source of corporate activity, the ALSOK Group has
always supported growth among employees through education and training, as well as through day-to-day operations. Moving
forward, we will continue to aim for increased corporate value over the medium to long term by undertaking active human investmentthat contributes to engagement, as well as further promotion of diversity, while also putting in place systems and environments thatenable each individual worker to apply their abilities to the maximum extent.

Administration of Employee Questionnaire
Since 1999, ALSOK has been conducting an employee questionnaire forthe purpose of ascertaining employees’ perceptions of the workplace,morals, values, etc., and promoting measures based on these perceptions.
Questionnaire content is designed to cover a wide variety of topics,
including views on various company systems, personal goal-setting,evaluation of personal abilities and growth, and awareness of work styles,
in addition to satisfaction with work and remuneration. By absorbing theopinions of our employees, and then taking various measures that reflect
them, we aim to increase employee and company engagement.

Human Resources Department Initiatives
Issues•Promoting the empowerment of women•

Promoting the work-life balance of
employees

Targets••

Increase of proportion of women in
management positions 5% from fiscal 2020
Increase of 5% from fiscal 2020 in the
average years of continual employee
service over 3 years

VisionWe will strive to provide opportunities to learn proactively andtake on challenges as a means of developing humanresources capable of thinking, learning and acting
independently to meet the expanding need for safety andpeace of mind. We will also go even further in advancing work
style reforms while enhancing employee engagement throughrespect for the diversity of each individual while establishingand maintaining an environment and systems that allow eachindividual to maximize his/her motivation and abilities.

Introduced a system to help employees take extended vacation leave
Introduced a system to help employees take leave for life events• Established an environment facilitating continued work at
maximum capability by employees on work schedules limited
by childcare, nursing care, etc.
• Expanded the scope of system for shortened work hours toaccommodate childcare• Promoted childcare leave by male employees••

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.
To help employees to take extended vacation leave, wehave introduced systems such as “Platinum Holidays” and“Pearl Holidays.” While encouraging all employees to takevacations of 9 or more consecutive days, we also use thesystem to foster an environment that encourages employees
to take annual leave by asking them in advance when theyplan to take leave each quarter.

Average years of continual employee service (company-wide) /Ratio of female managers (non-consolidated)(Year)
20

15

Average years of continual employee service

16.9

17.6

4.0

4.1

Proportion of women in management positions

18.3

4.0

(%)
5
4

60

2022

(FY)

We are working to build a training system and develop an educational program that
fosters understanding and dissemination of the basic spirit of our Management
Philosophy, Management Guidelines, and Code of Conduct in order to train humanresources who can implement each of our company’s policies, and accurately
understand how the business environment is changing and what society needs.
In particular, new employees, who will be responsible for the future of ALSOK, will
receive approximately 40 hours of initial training to acquire new security certifications andlearn common knowledge, skills, and ethics necessary for security work. Eachdepartment has also prepared an enhanced educational program that includes instruction
and training based on an OJT plan systematized for each job type.

Expansion of the eligibility age range for the Earlier/Later
Workday Start Time System to accommodate childcare(for students under junior high school age) (2023)

0

53.0

60.0

70.4

62.8
53.1

0

2018

2019

2020

2022

2021

(FY)

Dialogue with Employees

Dialogue between president and young employees

Management Personnel Development
In order to achieve sustained development amid rapid changes in the social environment, such as population decline, technologicalinnovation, and globalization, we face the urgent task of training management personnel who have acquired systematic andadvanced knowledge and skills concerning management. In response to this issue, ALSOK dispatches employees to professional
graduate schools where they can acquire advanced management knowledge.

In-house Recruitment System

Promoting of Acquisition of Qualifications

34

•

20

Career Development / Deepening Our Expertise

ALSOK aims to increase the acquisition rate of official
certifications, and we encourage employees to take on new
challenges by providing subsidies for certifications.
Also, in order to motivate employees to acquire high-difficulty
qualifications and to secure excellent human resources, we haveestablished a system to provide qualification allowance toemployees who possess the qualifications specified by thecompany and engage in specific work.

Paid leave in half-day increments for childcare workers
Elimination of maximum limit on number of days (2019)40

Training for Employees

1

2021

•

(%)
80

Improved Employee Capabilities

2
5

2020

Introduction of Platinum Holiday Program (2018)

Percentage of paid leave taken (non-consolidated)

In our efforts to increase employee engagement during the year, we created
41 opportunities for dialogue between the president and younger employees.
We use these dialogues to actively encourage exchange of opinions,
including exposure to views that are unique to junior employees. We also
hold informal discussion meetings between employees and officers in chargeof human resources in order to raise issues and draw opinions from
employees, with 43 such gatherings held in fiscal 2022.

3
10

0

•

Establishment of a System to Improve Work Styles

Kazuhiro Yoshida General Manager of Human Resources Department

Systems and Measures for Building a Comfortable Workplace Environment

Examples of Measures Taken in Recent Years

List of Certification Exams•

Attorney•

Systems Auditor Examination•

Certified public accountant•

Architect (1st class)•

Certified tax accountant•

Small and Medium Enterprise Consultant•

Engineer•

Labor and Social Security Attorney•

Information Technology Strategist Examination

The ALSOK Group is actively promoting personnel exchanges with members of central ministries and agencies, other companies,
and within the Group to promote the revitalization of the organization and the improvement of employee capabilities. In addition, weare striving to develop human resources 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. Going beyond our mainstay business of security
services, we have also adopted an open recruitment system in all business areas, including the nursing care business, to discoverand develop human resources who will form the core of our business.

Learning Beyond Boundaries (external training)
At ALSOK, we provide our employees with learning opportunities in which they can transcend their own organizational boundaries,
exchanging views and information with people working in other industries. Through access to opportunities for exposure to different
know-how and values, they can take a fresh look at our company's practices, work styles, etc. In this way, we are strengthening our
initiatives for the formation of human resources capable of carrying out the necessary reforms.

ALSOK REPORT 2023

35

Sustainability and ESG

Cultivating Human Resources and Building a Comfortable Workplace Environment
Important Related Materiality

Work Style Reform and Work–Life Balance

Based on the fundamental concept of human resources as the most important source of corporate activity, the ALSOK Group has
always supported growth among employees through education and training, as well as through day-to-day operations. Moving
forward, we will continue to aim for increased corporate value over the medium to long term by undertaking active human investmentthat contributes to engagement, as well as further promotion of diversity, while also putting in place systems and environments thatenable each individual worker to apply their abilities to the maximum extent.

Administration of Employee Questionnaire
Since 1999, ALSOK has been conducting an employee questionnaire forthe purpose of ascertaining employees’ perceptions of the workplace,morals, values, etc., and promoting measures based on these perceptions.
Questionnaire content is designed to cover a wide variety of topics,
including views on various company systems, personal goal-setting,evaluation of personal abilities and growth, and awareness of work styles,
in addition to satisfaction with work and remuneration. By absorbing theopinions of our employees, and then taking various measures that reflect
them, we aim to increase employee and company engagement.

Human Resources Department Initiatives
Issues•Promoting the empowerment of women•

Promoting the work-life balance of
employees

Targets••

Increase of proportion of women in
management positions 5% from fiscal 2020
Increase of 5% from fiscal 2020 in the
average years of continual employee
service over 3 years

VisionWe will strive to provide opportunities to learn proactively andtake on challenges as a means of developing humanresources capable of thinking, learning and acting
independently to meet the expanding need for safety andpeace of mind. We will also go even further in advancing work
style reforms while enhancing employee engagement throughrespect for the diversity of each individual while establishingand maintaining an environment and systems that allow eachindividual to maximize his/her motivation and abilities.

Introduced a system to help employees take extended vacation leave
Introduced a system to help employees take leave for life events• Established an environment facilitating continued work at
maximum capability by employees on work schedules limited
by childcare, nursing care, etc.
• Expanded the scope of system for shortened work hours toaccommodate childcare• Promoted childcare leave by male employees••

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.
To help employees to take extended vacation leave, wehave introduced systems such as “Platinum Holidays” and“Pearl Holidays.” While encouraging all employees to takevacations of 9 or more consecutive days, we also use thesystem to foster an environment that encourages employees
to take annual leave by asking them in advance when theyplan to take leave each quarter.

Average years of continual employee service (company-wide) /Ratio of female managers (non-consolidated)(Year)
20

15

Average years of continual employee service

16.9

17.6

4.0

4.1

Proportion of women in management positions

18.3

4.0

(%)
5
4

60

2022

(FY)

We are working to build a training system and develop an educational program that
fosters understanding and dissemination of the basic spirit of our Management
Philosophy, Management Guidelines, and Code of Conduct in order to train humanresources who can implement each of our company’s policies, and accurately
understand how the business environment is changing and what society needs.
In particular, new employees, who will be responsible for the future of ALSOK, will
receive approximately 40 hours of initial training to acquire new security certifications andlearn common knowledge, skills, and ethics necessary for security work. Eachdepartment has also prepared an enhanced educational program that includes instruction
and training based on an OJT plan systematized for each job type.

Expansion of the eligibility age range for the Earlier/Later
Workday Start Time System to accommodate childcare(for students under junior high school age) (2023)

0

53.0

60.0

70.4

62.8
53.1

0

2018

2019

2020

2022

2021

(FY)

Dialogue with Employees

Dialogue between president and young employees

Management Personnel Development
In order to achieve sustained development amid rapid changes in the social environment, such as population decline, technologicalinnovation, and globalization, we face the urgent task of training management personnel who have acquired systematic andadvanced knowledge and skills concerning management. In response to this issue, ALSOK dispatches employees to professional
graduate schools where they can acquire advanced management knowledge.

In-house Recruitment System

Promoting of Acquisition of Qualifications

34

•

20

Career Development / Deepening Our Expertise

ALSOK aims to increase the acquisition rate of official
certifications, and we encourage employees to take on new
challenges by providing subsidies for certifications.
Also, in order to motivate employees to acquire high-difficulty
qualifications and to secure excellent human resources, we haveestablished a system to provide qualification allowance toemployees who possess the qualifications specified by thecompany and engage in specific work.

Paid leave in half-day increments for childcare workers
Elimination of maximum limit on number of days (2019)40

Training for Employees

1

2021

•

(%)
80

Improved Employee Capabilities

2
5

2020

Introduction of Platinum Holiday Program (2018)

Percentage of paid leave taken (non-consolidated)

In our efforts to increase employee engagement during the year, we created
41 opportunities for dialogue between the president and younger employees.
We use these dialogues to actively encourage exchange of opinions,
including exposure to views that are unique to junior employees. We also
hold informal discussion meetings between employees and officers in chargeof human resources in order to raise issues and draw opinions from
employees, with 43 such gatherings held in fiscal 2022.

3
10

0

•

Establishment of a System to Improve Work Styles

Kazuhiro Yoshida General Manager of Human Resources Department

Systems and Measures for Building a Comfortable Workplace Environment

Examples of Measures Taken in Recent Years

List of Certification Exams•

Attorney•

Systems Auditor Examination•

Certified public accountant•

Architect (1st class)•

Certified tax accountant•

Small and Medium Enterprise Consultant•

Engineer•

Labor and Social Security Attorney•

Information Technology Strategist Examination

The ALSOK Group is actively promoting personnel exchanges with members of central ministries and agencies, other companies,
and within the Group to promote the revitalization of the organization and the improvement of employee capabilities. In addition, weare striving to develop human resources 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. Going beyond our mainstay business of security
services, we have also adopted an open recruitment system in all business areas, including the nursing care business, to discoverand develop human resources who will form the core of our business.

Learning Beyond Boundaries (external training)
At ALSOK, we provide our employees with learning opportunities in which they can transcend their own organizational boundaries,
exchanging views and information with people working in other industries. Through access to opportunities for exposure to different
know-how and values, they can take a fresh look at our company's practices, work styles, etc. In this way, we are strengthening our
initiatives for the formation of human resources capable of carrying out the necessary reforms.

ALSOK REPORT 2023

35

Sustainability and ESG

Cultivating Human Resources and Building a Comfortable Workplace Environment
Promoting the Empowerment of WomenDiversity and Inclusion

Challenges and Goals in Promoting the Empowerment of Women

Employment and Active Participation by Employees with Disabilities

ALSOK aims to create a workplace environment in which employees can fully exercise their individual abilities and play an activeroles. We are 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 hire employees with disabilities at various business sites, including our Head Office, branch offices,and group companies, and we support each of these employees in leveraging their unique personal
attributes for full professional participation and advancement.
In 2010, we established ALSOK Business Support Co., Ltd. as a special subsidiary to help us create
workplaces where each and every employee, regardless of whether or not they have a disability, canwork with vigor and pride. Our employees produce printed materials such as business cards andproduct brochures used by the ALSOK Group, store contracts and equipment, and are active in awide range of fields, such as sending documents and maintaining equipment and terminals.

Initiatives to Develop Female Management
Objectives

Increase the proportion of female managers by 5% (compared to FY2020)

Working at ALSOK Business Support

Initiatives•

We began work on establishing a Subcommittee for Increasing Women in Management Positions, comprised of female
managers, and moved forward with discussions on solving issues such as motivating female employees in non-managerial
positions to seek promotion.

•

We hold conferences enabling non-managerial female employees to dialogue with female managers in order to provide
the former with role models and encrouage them to have visions for their futures.

Paralympians are active not just in sports, but also on the front lines at work. In addition to being an active member of Japan’snational women’s blind football team, Tokyo Paralympic goalball bronze medalist Haruka Wakasugi is also working in the Planning
Department, helping to develop new products and services that leverage the experience and insights of visually impaired athletes.
Coworkers have said they learned a lot from encountering things they didn’t know about, and since these are needs based in
actual experience, they say they come up with ideas and opinions that might not occur to other employees.

Interview with Paralympian Haruka Wakasugi

Providing an Environment Conducive to Achieving Work-Life Balance
Objectives

Increase average years of continual employee service by 5% (compared to FY2020)

Initiatives•

While implementing various measures to promote employee work-life balance (no overtime days and the long-term
vacation system), we are also advancing the discussion of diverse employee work styles.

•

We are establishing an environment that makes use of means such as working from home to help employees work to theirfullest capacity, even when their work styles are restricted by responsibilities such as childcare or nursing care, etc.

Active Participation by Female Employees in Male-dominated Occupations
Although ALSOK provides men and women with equal opportunities in all job categories
when hiring, in the past, the company had tended to avoid assigning women to the
Operations Department for security considerations, placing them in logistical support roles
instead. We have now freed ourselves of such underlying assumptions, and have createdan environment in which we assign female employees who wish to work in positions thathave traditionally been for men.

Case Examples
Women participating actively in airport security inspection services
Airport security inspection services represent a workplace in which the relatively few female security
personnel of group companies participate actively. At Komatsu Airport, where security services areprovided by Hokuriku Sohgo Security Services, approximately 20 employees are working at security
checkpoints where passengers and carry-on baggage are inspected, in addition to inspection points
for checked-in baggage. Most of these employees are in their 20s, which makes for a lively workplacewith a gathering of diverse employees who are always smiling amid the bustle of work. In April 2023,
international flights resumed partial operation for the first time in three years after suspension due tothe COVID-19 pandemic. We are performing inspection work on a daily basis to ensure thatpassengers can travel safely and comfortably.
Active participation by women in transportation security services
Although security service operations have the image of a male-dominatedworkplace, many women are actively participating in this field. At the Tokushimabranch office, female staff in their third year with the company are actively
participating in the funds department. They demonstrate their capabilities in areasthat include security transport and collected cash inspection.
At ALSOK, we strive to establish and maintain a work environment that facilitates
on-site work by women and enables them to expand the range of their active
professional participation and advancement.
36

We go beyond offering advice in the process of new product and service development toprovide recommendations on how to accommodate diverse on-site customers in theworkplace, such as by improving barrier-free access to existing services.
In my work as an employee, I requested that the company installs a reading software on my
PC and Braille in the elevators, and that they convert paper documents into data. I feel that inworking together, they have developed an understanding.

Paralympic medalist Haruka Wakasugi
also active in development of new
products and services

Active Participation by Seniors
The ALSOK Group engages actively in the rehiring of retirees over 60, and we have many senior employees active on the front lines,
where they make the most of the abundant experience gained during their prime working years.
Some of these employees work as leaders in the same workplaces where they were previously active, while others undertake newchallenges, such as production and sales of ALSOK original goods, and performance of regular alarm equipment inspection andreuse. In this way, we work to increase the circumstances that enable individuals to play active roles, taking individual abilities andwishes into account.

Employment of Foreign Nationals in the Nursing Care Business
Many foreign national employees work in our long-term care business. Particularly when taking
on foreign technical trainee interns and interns for specified technical training, we conduct priorinterviews on ethnicity, religion, dietary practices, and basic knowledge about employment. By
sharing the resulting information among the relevant departments, we make it possible for them
to be taken on smoothly. Depending on their level of Japanese language proficiency, we also
add Ruby and English translations to training materials to help them form good relationships
with fellow employees and users regardless of nationality.

Foreign employees working for a care company

Overseas Business Development, Training, and Respect for Diversity for
Local Employees
Established in 2022, ALSOK Bangladesh Security Services Ltd. focuses effort on training
employees hired locally so that their work for our Japanese client companies can proceedsmoothly. As a demonstration of our feelings of gratitude toward the local community, we
perform cleanup activities on the streets around our work sites, and keeping our work
environment clean has the added benefit of enabling us to quickly detect suspicious objects.
Since 90% of the population in Bangladesh is Muslim, we take the religion of the local staff
into consideration by, for instance, ensuring five prayer breaks a day, and adjusting work
hours during the month-long period of fasting. We also explain in advance that security guards
must cooperate with each other in order to provide seamless 24-hour security service.
In addition, we take a flexible approach, accommodating individual degrees of religious faith,
and the faithful of differing religions.

Training at ALSOK Bangladesh

Community cleanup activities

ALSOK REPORT 2023

37

Sustainability and ESG

Cultivating Human Resources and Building a Comfortable Workplace Environment
Promoting the Empowerment of WomenDiversity and Inclusion

Challenges and Goals in Promoting the Empowerment of Women

Employment and Active Participation by Employees with Disabilities

ALSOK aims to create a workplace environment in which employees can fully exercise their individual abilities and play an activeroles. We are 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 hire employees with disabilities at various business sites, including our Head Office, branch offices,and group companies, and we support each of these employees in leveraging their unique personal
attributes for full professional participation and advancement.
In 2010, we established ALSOK Business Support Co., Ltd. as a special subsidiary to help us create
workplaces where each and every employee, regardless of whether or not they have a disability, canwork with vigor and pride. Our employees produce printed materials such as business cards andproduct brochures used by the ALSOK Group, store contracts and equipment, and are active in awide range of fields, such as sending documents and maintaining equipment and terminals.

Initiatives to Develop Female Management
Objectives

Increase the proportion of female managers by 5% (compared to FY2020)

Working at ALSOK Business Support

Initiatives•

We began work on establishing a Subcommittee for Increasing Women in Management Positions, comprised of female
managers, and moved forward with discussions on solving issues such as motivating female employees in non-managerial
positions to seek promotion.

•

We hold conferences enabling non-managerial female employees to dialogue with female managers in order to provide
the former with role models and encrouage them to have visions for their futures.

Paralympians are active not just in sports, but also on the front lines at work. In addition to being an active member of Japan’snational women’s blind football team, Tokyo Paralympic goalball bronze medalist Haruka Wakasugi is also working in the Planning
Department, helping to develop new products and services that leverage the experience and insights of visually impaired athletes.
Coworkers have said they learned a lot from encountering things they didn’t know about, and since these are needs based in
actual experience, they say they come up with ideas and opinions that might not occur to other employees.

Interview with Paralympian Haruka Wakasugi

Providing an Environment Conducive to Achieving Work-Life Balance
Objectives

Increase average years of continual employee service by 5% (compared to FY2020)

Initiatives•

While implementing various measures to promote employee work-life balance (no overtime days and the long-term
vacation system), we are also advancing the discussion of diverse employee work styles.

•

We are establishing an environment that makes use of means such as working from home to help employees work to theirfullest capacity, even when their work styles are restricted by responsibilities such as childcare or nursing care, etc.

Active Participation by Female Employees in Male-dominated Occupations
Although ALSOK provides men and women with equal opportunities in all job categories
when hiring, in the past, the company had tended to avoid assigning women to the
Operations Department for security considerations, placing them in logistical support roles
instead. We have now freed ourselves of such underlying assumptions, and have createdan environment in which we assign female employees who wish to work in positions thathave traditionally been for men.

Case Examples
Women participating actively in airport security inspection services
Airport security inspection services represent a workplace in which the relatively few female security
personnel of group companies participate actively. At Komatsu Airport, where security services areprovided by Hokuriku Sohgo Security Services, approximately 20 employees are working at security
checkpoints where passengers and carry-on baggage are inspected, in addition to inspection points
for checked-in baggage. Most of these employees are in their 20s, which makes for a lively workplacewith a gathering of diverse employees who are always smiling amid the bustle of work. In April 2023,
international flights resumed partial operation for the first time in three years after suspension due tothe COVID-19 pandemic. We are performing inspection work on a daily basis to ensure thatpassengers can travel safely and comfortably.
Active participation by women in transportation security services
Although security service operations have the image of a male-dominatedworkplace, many women are actively participating in this field. At the Tokushimabranch office, female staff in their third year with the company are actively
participating in the funds department. They demonstrate their capabilities in areasthat include security transport and collected cash inspection.
At ALSOK, we strive to establish and maintain a work environment that facilitates
on-site work by women and enables them to expand the range of their active
professional participation and advancement.
36

We go beyond offering advice in the process of new product and service development toprovide recommendations on how to accommodate diverse on-site customers in theworkplace, such as by improving barrier-free access to existing services.
In my work as an employee, I requested that the company installs a reading software on my
PC and Braille in the elevators, and that they convert paper documents into data. I feel that inworking together, they have developed an understanding.

Paralympic medalist Haruka Wakasugi
also active in development of new
products and services

Active Participation by Seniors
The ALSOK Group engages actively in the rehiring of retirees over 60, and we have many senior employees active on the front lines,
where they make the most of the abundant experience gained during their prime working years.
Some of these employees work as leaders in the same workplaces where they were previously active, while others undertake newchallenges, such as production and sales of ALSOK original goods, and performance of regular alarm equipment inspection andreuse. In this way, we work to increase the circumstances that enable individuals to play active roles, taking individual abilities andwishes into account.

Employment of Foreign Nationals in the Nursing Care Business
Many foreign national employees work in our long-term care business. Particularly when taking
on foreign technical trainee interns and interns for specified technical training, we conduct priorinterviews on ethnicity, religion, dietary practices, and basic knowledge about employment. By
sharing the resulting information among the relevant departments, we make it possible for them
to be taken on smoothly. Depending on their level of Japanese language proficiency, we also
add Ruby and English translations to training materials to help them form good relationships
with fellow employees and users regardless of nationality.

Foreign employees working for a care company

Overseas Business Development, Training, and Respect for Diversity for
Local Employees
Established in 2022, ALSOK Bangladesh Security Services Ltd. focuses effort on training
employees hired locally so that their work for our Japanese client companies can proceedsmoothly. As a demonstration of our feelings of gratitude toward the local community, we
perform cleanup activities on the streets around our work sites, and keeping our work
environment clean has the added benefit of enabling us to quickly detect suspicious objects.
Since 90% of the population in Bangladesh is Muslim, we take the religion of the local staff
into consideration by, for instance, ensuring five prayer breaks a day, and adjusting work
hours during the month-long period of fasting. We also explain in advance that security guards
must cooperate with each other in order to provide seamless 24-hour security service.
In addition, we take a flexible approach, accommodating individual degrees of religious faith,
and the faithful of differing religions.

Training at ALSOK Bangladesh

Community cleanup activities

ALSOK REPORT 2023

37

Sustainability and ESG

Contributing to Local Communities through Active Communication

Sustainability and ESG

Supply Chain Management

Important Related Materiality
Embodying “arigato no kokoro” (a feeling of gratefulness and gratitude)—part of ALSOK’s fundamental spirit—, we are engaged incommunity contribution activities utilizing our core business in order to meet the demands and expectations of local communities forsafety and security. Furthermore, based on our Management Philosophy of ensuring the safety and security of society, we participate
not only in business activities but also 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 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 and development whilestrengthening cooperation with our business partners.

Contributing to the Next Generation

Governance

ALSOK ANSHIN KYOSHITSU

ALSOK Business Partner Hotline, A Point of Contact for Business Partners

In 2004, the ALSOK ANSHIN KYOSHITSU program is carried out nationwide to foster crime
prevention awareness. Beginning this fiscal year, we are providing a new class on disasterprevention, and are providing ANSHIN KYOSHITSU classes in sign language at special-needs
schools as part of our efforts to protect as many children as possible from being victimized bycrime. As of the end of March 2023, a total of 55,563 classes have been held since the start ofthe program with 1,736,096 children participating.

We established the ALSOK Business Partner Hotline in December 2021 in order to ensure self-cleansing, social trust,the maintenance and improvement of corporate value, and sustainable development with business partners.
We have thus built a system enabling our business partners to reportacts by organizations or individuals within the ALSOK Group thatare or might be unlawful, illicit or unethical, and to do so without
being treated disadvantageously. Upon receiving a report, we
promptly take corrective and preventive measures.

Providing Social Studies Learning Opportunities for Children
ALSOK helps provide the next generation throughout Japan with social studies learning opportunities by accepting company visitsand experiential workplace learning, and by providing career education.
At our overseas company ALSOK Bangladesh Security Services Ltd., we visit local schools to offer Japanese language andetiquette education in an initiative to address child poverty and youth development. We are also considering taking on graduates as
employees to help promote employment.

Sports, Culture and Art Promotion Activities
Among ALSOK’s sports clubs, the judo, wrestling, weightlifting, and marksmanship clubs include outstanding athletes recognized as
representing Japan competitively, who contribute to the promotion of sports through various activities in addition to their athletic activities.
In addition to sending outstanding athletes to ALSOK judo classes for elementary and junior high school students, and to
top-athlete exchange programs, we also support the nonprofit organization JUDOs, which provides recycled judo gi clothing andtatami mats free of charge to people in countries where a lack of this equipment is an impediment to learning judo.

Ōshō Tournament Sponsorship
ALSOK helped promote the culture of shogi (Japanese chess) through its special sponsorshipof the 72nd ALSOK Cup King’s Match, a title tournament sponsored by The Mainichi
Newspapers Co., Ltd., Sports Nippon Newspapers Co. Ltd., and the Japan Shogi Association,in which champion Sota Fujii made his first title defense.

Disaster Support and Donation Activities
ALSOK Arigato Undo Foundation Activities
The ALSOK ARIGATO UNDO FOUNDATION collected donations for 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. As of the end of March 2023, a cumulative total of 134 vehicles have been donated.

Overseas Humanitarian Assistance and Disaster Area Support
Our donations to the United Nations High Commissioner for Refugees (UNHCR) through the nonprofit United Nations Association for
UNHCR comprised a total of 9,273,500 yen for humanitarian assistance to Ukraine and its neighboring regions, and a total of
8,304,000 yen for the damage caused by the major earthquake in Turkey and Syria.
Group company ALSOK VIETNAM SECURITY SERVICES JSC. also donates to an orphanage in Vietnam's Binh Duong region.

Endorsement and Donations for the “National Movement to Support the Future of Children”
By donating a portion of home security services revenue to the National Movement to Support the Future ofChildren, which we have endorsed since 2017, we are able to support the livelihood of children in poverty throughthe NPO.

38

Conducting Compliance Training
As a corporation that is representative of the security industry in Japan, ALSOK focuses
effort on providing appropriate security services and maintaining compliance, while also
encouraging ethically correct behavior in areas of business other than security. We
conduct a full array of training for all of our employees appropriate to the nature of ourbusiness, which places us in direct contact with our customers and their valued assets.
In 2022, for example we carried out training on industrial waste disposal, including
waste management in a circular economy, in order to ensure that we could makeappropriate proposals to our customers and properly dispose of waste in our facilities
management services. The training was administered twice during the year for
management-level employees at 64 business sites nationwide.

Supply Chain
Regular Meetings with Contractors and Collaborating Companies
ALSOK business operations such as alarm equipment procurement and installation,and the stationing of guards, are founded on the understanding and cooperation of a wide
range of business partners. We communicate with our suppliers through regular meetings
with each department, in which we share updated information, discuss action policies,
and honor suppliers with awards.
Moving forward, we aim to further leverage these opportunities in order to improvesustainability throughout the supply chain, with plans that include the presentation ofbriefings on human rights and consideration for the environment.
At a regular meeting with suppliers

Environmentally-Friendly Design
We have formulated our Guidelines for Environmentally-Friendly Design with the objectiveof contributing to environmental conservation in the development of security equipment
and other outsourced products. Based on these guidelines, we take into accountenvironmental considerations in the design and development of products in collaboration
with our business partners. Launched in April 2023, HOME ALSOK Connect requires 1/4
or less of the power consumption* of conventional products.
Moving forward, we will consider environmentally friendly designs when designing anddeveloping products, limit the use of hazardous chemical substances in delivered
products, extend the service life of products, and recycle packaging materials to further
contribute to environmental conservation.

Weekly power consumption*

76% decrease
Existing products Connect* Subject to change depending on conditions of use.

ALSOK REPORT 2023

39

Sustainability and ESG

Contributing to Local Communities through Active Communication

Sustainability and ESG

Supply Chain Management

Important Related Materiality
Embodying “arigato no kokoro” (a feeling of gratefulness and gratitude)—part of ALSOK’s fundamental spirit—, we are engaged incommunity contribution activities utilizing our core business in order to meet the demands and expectations of local communities forsafety and security. Furthermore, based on our Management Philosophy of ensuring the safety and security of society, we participate
not only in business activities but also 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 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 and development whilestrengthening cooperation with our business partners.

Contributing to the Next Generation

Governance

ALSOK ANSHIN KYOSHITSU

ALSOK Business Partner Hotline, A Point of Contact for Business Partners

In 2004, the ALSOK ANSHIN KYOSHITSU program is carried out nationwide to foster crime
prevention awareness. Beginning this fiscal year, we are providing a new class on disasterprevention, and are providing ANSHIN KYOSHITSU classes in sign language at special-needs
schools as part of our efforts to protect as many children as possible from being victimized bycrime. As of the end of March 2023, a total of 55,563 classes have been held since the start ofthe program with 1,736,096 children participating.

We established the ALSOK Business Partner Hotline in December 2021 in order to ensure self-cleansing, social trust,the maintenance and improvement of corporate value, and sustainable development with business partners.
We have thus built a system enabling our business partners to reportacts by organizations or individuals within the ALSOK Group thatare or might be unlawful, illicit or unethical, and to do so without
being treated disadvantageously. Upon receiving a report, we
promptly take corrective and preventive measures.

Providing Social Studies Learning Opportunities for Children
ALSOK helps provide the next generation throughout Japan with social studies learning opportunities by accepting company visitsand experiential workplace learning, and by providing career education.
At our overseas company ALSOK Bangladesh Security Services Ltd., we visit local schools to offer Japanese language andetiquette education in an initiative to address child poverty and youth development. We are also considering taking on graduates as
employees to help promote employment.

Sports, Culture and Art Promotion Activities
Among ALSOK’s sports clubs, the judo, wrestling, weightlifting, and marksmanship clubs include outstanding athletes recognized as
representing Japan competitively, who contribute to the promotion of sports through various activities in addition to their athletic activities.
In addition to sending outstanding athletes to ALSOK judo classes for elementary and junior high school students, and to
top-athlete exchange programs, we also support the nonprofit organization JUDOs, which provides recycled judo gi clothing andtatami mats free of charge to people in countries where a lack of this equipment is an impediment to learning judo.

Ōshō Tournament Sponsorship
ALSOK helped promote the culture of shogi (Japanese chess) through its special sponsorshipof the 72nd ALSOK Cup King’s Match, a title tournament sponsored by The Mainichi
Newspapers Co., Ltd., Sports Nippon Newspapers Co. Ltd., and the Japan Shogi Association,in which champion Sota Fujii made his first title defense.

Disaster Support and Donation Activities
ALSOK Arigato Undo Foundation Activities
The ALSOK ARIGATO UNDO FOUNDATION collected donations for 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. As of the end of March 2023, a cumulative total of 134 vehicles have been donated.

Overseas Humanitarian Assistance and Disaster Area Support
Our donations to the United Nations High Commissioner for Refugees (UNHCR) through the nonprofit United Nations Association for
UNHCR comprised a total of 9,273,500 yen for humanitarian assistance to Ukraine and its neighboring regions, and a total of
8,304,000 yen for the damage caused by the major earthquake in Turkey and Syria.
Group company ALSOK VIETNAM SECURITY SERVICES JSC. also donates to an orphanage in Vietnam's Binh Duong region.

Endorsement and Donations for the “National Movement to Support the Future of Children”
By donating a portion of home security services revenue to the National Movement to Support the Future ofChildren, which we have endorsed since 2017, we are able to support the livelihood of children in poverty throughthe NPO.

38

Conducting Compliance Training
As a corporation that is representative of the security industry in Japan, ALSOK focuses
effort on providing appropriate security services and maintaining compliance, while also
encouraging ethically correct behavior in areas of business other than security. We
conduct a full array of training for all of our employees appropriate to the nature of ourbusiness, which places us in direct contact with our customers and their valued assets.
In 2022, for example we carried out training on industrial waste disposal, including
waste management in a circular economy, in order to ensure that we could makeappropriate proposals to our customers and properly dispose of waste in our facilities
management services. The training was administered twice during the year for
management-level employees at 64 business sites nationwide.

Supply Chain
Regular Meetings with Contractors and Collaborating Companies
ALSOK business operations such as alarm equipment procurement and installation,and the stationing of guards, are founded on the understanding and cooperation of a wide
range of business partners. We communicate with our suppliers through regular meetings
with each department, in which we share updated information, discuss action policies,
and honor suppliers with awards.
Moving forward, we aim to further leverage these opportunities in order to improvesustainability throughout the supply chain, with plans that include the presentation ofbriefings on human rights and consideration for the environment.
At a regular meeting with suppliers

Environmentally-Friendly Design
We have formulated our Guidelines for Environmentally-Friendly Design with the objectiveof contributing to environmental conservation in the development of security equipment
and other outsourced products. Based on these guidelines, we take into accountenvironmental considerations in the design and development of products in collaboration
with our business partners. Launched in April 2023, HOME ALSOK Connect requires 1/4
or less of the power consumption* of conventional products.
Moving forward, we will consider environmentally friendly designs when designing anddeveloping products, limit the use of hazardous chemical substances in delivered
products, extend the service life of products, and recycle packaging materials to further
contribute to environmental conservation.

Weekly power consumption*

76% decrease
Existing products Connect* Subject to change depending on conditions of use.

ALSOK REPORT 2023

39

Sustainability and ESG

Consideration for the Global Environment
Important Related Materiality

Aiming for Acquisition of ISO 14001 Certification by All Group Companies

We recognize that global environmental issues represent a challenge shared by all of humankind, and have therefore set targets to
reduce CO2 and other emissions as we strive to prevent environmental pollution and reduce environmental impact, while also
addressing the climate change problem and engaging in environmental conservation activities.

In our Medium-Term Management Plan, Grand Design 2025 (GD2025), we are aiming for all companies to acquire ISO 14001
certification to further enhance our environmental management system. We completed certification of all companies in fiscal 2022
except for two, which were consolidated during the fiscal year.

Initiatives Aimed at Carbon Neutrality

Toward the Realization of a Recycling-Oriented Society

ALSOK Group CO2 Reduction Target

Promotion of reuse of alarm equipment (Repair Center)

The ALSOK Group has revised its CO2 emission reduction targets for fiscal 2023 and thereafter, with the aim of cutting CO2 emissions(scope 1+2) by 46% from the fiscal 2013 level by fiscal 2030, and achieving carbon neutrality by fiscal 2050.

We are working to reduce the amount of waste and resources
used in manufacturing by reusing alarm equipment. In fiscal 2022,
effective Scope 3, Category 1 (purchased products and services)
reductions amounted to 4,142 t-CO2 (4.1%).
We currently have Repair Centers in Kanagawa and Osaka
Prefectures, where the external appearance and operation ofdevices collected from each location are carefully checked,
enabling us to provide customers with equipment they can use
with assurance.

2013 Base Year
Emissions*

112,952

Performance

CO2 emissions (t-CO2)

86,850Decrease of
23.1% infiscal 2022
61,038Plan

Decrease of
46% infiscal 2030
Achieve carbon neutrality
by fiscal 2050

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

2050

(FY)

* Base-year emissions were revised to account for the impact of M&A.

Initiatives for Reduction of Environmental Impacts
In addition to progress on upgrading our lighting and air conditioning equipment to achieve CO2 emission reduction targets, we arealso replacing vehicles with environmentally friendly alternatives, primarily electric vehicles, and working on power saving andeco-driving practices.
Scope 1••

Scope 2•

Scope 3•

Proactive conversion to environmentally friendly electric and hybrid vehicles
Adoption of three-wheeled electric bikes in the Tokyo metropolitan area (in fiscal 2022, we introduced 40 of the vehicles
in Tokyo, with plans to expand this to about 200 over the subsequent five years. Their adoption in areas other than Tokyo isalso under consideration.)

LED and HVAC equipment upgrades at company facilities (2 facilities owned by the Head Office converted to LED lighting
in fiscal 2022, with plans for upgrades at 2 facilities in fiscal 2023)• Installation of solar electric power generators at company-owned facilities of group companies• Electric power conservation in routine daily activities
Promoting reductions throughout the supply chain, through our own initiatives and through cooperation with suppliers
Reducing new equipment procurement and waste through the reuse of alarm equipment• Reducing end-user power consumption by phasing in energy-conserving equipment•

Reuse operations at a repair center

Environmentally Friendly Procurement
In order to contribute even more to the creation of a circular society, we are carrying out a variety of initiatives in cooperation withbusiness partners in compliance with our CSR and Sustainability Procurement Guidelines. Our environmentally friendly design efforts
include the elimination of hazardous materials from devices, extension of their service life, and packaging material recycling. Our
efforts with regard to hazardous substances have included conversion from nickel-cadmium batteries to those using nickel-metal
hydride and designed in compliance with the RoHS Directive.

Safeguarding Biodiversity
Bird & Wildlife Control / Game Meats
The meat is processed and frozen at the Mobara Game Meat Processing Facility, operated by ALSOK Chiba Co., Ltd. and specializing in edible
game meats. The processing plant opened in July 2020, equipped with state-of-the-art facilities. It operates under a thorough regime of hygiene
management in compliance with HACCP,* and has acquired domestic game food certification (No. 30), which certifies safe, reliable wild game meat
processing. We accept a wide range of captured game, such as wild boar, which is slaughtered, processed, and marketed under uniform
procedures. Processed meat is sold at restaurants in the region with which we collaborate, and we have also begun selling frozen products online tohelp reduce food loss.
ALSOK Fukuoka Co., Ltd. has also entered thegame meat business. As the increasingly elderly
workforce of bird and animal exterminators poses achallenge for local communities, we areconscientiously establishing a process from setting
traps to trapping game, processing it, and distributing
it, thereby helping to resolve the issue while also
treating the captured lives with due care.
Mobara game meat processing facility
Processed game meat
* This is a method for sanitation management involving the analysis of potential hazards in the process from the receipt of raw materials to product shipment, development of a sanitation plan toprotect against hazards, as well as plan execution and record-keeping.

Since fiscal 2022, the ALSOK Group has outsourced third-party CO2 emissions verification (Scope 1+2) to a verification
organization.* We will continue working on refinement of these calculations and on verification including Scope 3.
* The period of calculation includes fiscal 2021 (April 2021 to March 2022).

Disclosure Based on TCFD Recommendations
ALSOK has 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 willcontinue to deepen our analysis and enhance the content of disclosure.

40

Tree Planting Activities
ALSOK began its tree-planting program in Chiba Prefecture in 2015 on theoccasion of the company's commemoration of the 50th anniversary of its
founding. Since 2021, we have participated in the MORINO PROJECT (Public
Interest Incorporated Foundation) engaged in tree planting activities. Employees
participated in a tree-planting festival in Minamisoma City, Fukushima Prefecture,
further deepening their interaction with local residents.
In addition to environmental conservation efforts such as seawall-based tree
planting, our group companies are promoting 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.
ALSOK REPORT 2023

41

Sustainability and ESG

Consideration for the Global Environment
Important Related Materiality

Aiming for Acquisition of ISO 14001 Certification by All Group Companies

We recognize that global environmental issues represent a challenge shared by all of humankind, and have therefore set targets to
reduce CO2 and other emissions as we strive to prevent environmental pollution and reduce environmental impact, while also
addressing the climate change problem and engaging in environmental conservation activities.

In our Medium-Term Management Plan, Grand Design 2025 (GD2025), we are aiming for all companies to acquire ISO 14001
certification to further enhance our environmental management system. We completed certification of all companies in fiscal 2022
except for two, which were consolidated during the fiscal year.

Initiatives Aimed at Carbon Neutrality

Toward the Realization of a Recycling-Oriented Society

ALSOK Group CO2 Reduction Target

Promotion of reuse of alarm equipment (Repair Center)

The ALSOK Group has revised its CO2 emission reduction targets for fiscal 2023 and thereafter, with the aim of cutting CO2 emissions(scope 1+2) by 46% from the fiscal 2013 level by fiscal 2030, and achieving carbon neutrality by fiscal 2050.

We are working to reduce the amount of waste and resources
used in manufacturing by reusing alarm equipment. In fiscal 2022,
effective Scope 3, Category 1 (purchased products and services)
reductions amounted to 4,142 t-CO2 (4.1%).
We currently have Repair Centers in Kanagawa and Osaka
Prefectures, where the external appearance and operation ofdevices collected from each location are carefully checked,
enabling us to provide customers with equipment they can use
with assurance.

2013 Base Year
Emissions*

112,952

Performance

CO2 emissions (t-CO2)

86,850Decrease of
23.1% infiscal 2022
61,038Plan

Decrease of
46% infiscal 2030
Achieve carbon neutrality
by fiscal 2050

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

2050

(FY)

* Base-year emissions were revised to account for the impact of M&A.

Initiatives for Reduction of Environmental Impacts
In addition to progress on upgrading our lighting and air conditioning equipment to achieve CO2 emission reduction targets, we arealso replacing vehicles with environmentally friendly alternatives, primarily electric vehicles, and working on power saving andeco-driving practices.
Scope 1••

Scope 2•

Scope 3•

Proactive conversion to environmentally friendly electric and hybrid vehicles
Adoption of three-wheeled electric bikes in the Tokyo metropolitan area (in fiscal 2022, we introduced 40 of the vehicles
in Tokyo, with plans to expand this to about 200 over the subsequent five years. Their adoption in areas other than Tokyo isalso under consideration.)

LED and HVAC equipment upgrades at company facilities (2 facilities owned by the Head Office converted to LED lighting
in fiscal 2022, with plans for upgrades at 2 facilities in fiscal 2023)• Installation of solar electric power generators at company-owned facilities of group companies• Electric power conservation in routine daily activities
Promoting reductions throughout the supply chain, through our own initiatives and through cooperation with suppliers
Reducing new equipment procurement and waste through the reuse of alarm equipment• Reducing end-user power consumption by phasing in energy-conserving equipment•

Reuse operations at a repair center

Environmentally Friendly Procurement
In order to contribute even more to the creation of a circular society, we are carrying out a variety of initiatives in cooperation withbusiness partners in compliance with our CSR and Sustainability Procurement Guidelines. Our environmentally friendly design efforts
include the elimination of hazardous materials from devices, extension of their service life, and packaging material recycling. Our
efforts with regard to hazardous substances have included conversion from nickel-cadmium batteries to those using nickel-metal
hydride and designed in compliance with the RoHS Directive.

Safeguarding Biodiversity
Bird & Wildlife Control / Game Meats
The meat is processed and frozen at the Mobara Game Meat Processing Facility, operated by ALSOK Chiba Co., Ltd. and specializing in edible
game meats. The processing plant opened in July 2020, equipped with state-of-the-art facilities. It operates under a thorough regime of hygiene
management in compliance with HACCP,* and has acquired domestic game food certification (No. 30), which certifies safe, reliable wild game meat
processing. We accept a wide range of captured game, such as wild boar, which is slaughtered, processed, and marketed under uniform
procedures. Processed meat is sold at restaurants in the region with which we collaborate, and we have also begun selling frozen products online tohelp reduce food loss.
ALSOK Fukuoka Co., Ltd. has also entered thegame meat business. As the increasingly elderly
workforce of bird and animal exterminators poses achallenge for local communities, we areconscientiously establishing a process from setting
traps to trapping game, processing it, and distributing
it, thereby helping to resolve the issue while also
treating the captured lives with due care.
Mobara game meat processing facility
Processed game meat
* This is a method for sanitation management involving the analysis of potential hazards in the process from the receipt of raw materials to product shipment, development of a sanitation plan toprotect against hazards, as well as plan execution and record-keeping.

Since fiscal 2022, the ALSOK Group has outsourced third-party CO2 emissions verification (Scope 1+2) to a verification
organization.* We will continue working on refinement of these calculations and on verification including Scope 3.
* The period of calculation includes fiscal 2021 (April 2021 to March 2022).

Disclosure Based on TCFD Recommendations
ALSOK has 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 willcontinue to deepen our analysis and enhance the content of disclosure.

40

Tree Planting Activities
ALSOK began its tree-planting program in Chiba Prefecture in 2015 on theoccasion of the company's commemoration of the 50th anniversary of its
founding. Since 2021, we have participated in the MORINO PROJECT (Public
Interest Incorporated Foundation) engaged in tree planting activities. Employees
participated in a tree-planting festival in Minamisoma City, Fukushima Prefecture,
further deepening their interaction with local residents.
In addition to environmental conservation efforts such as seawall-based tree
planting, our group companies are promoting 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.
ALSOK REPORT 2023

41

Sustainability and ESG

Corporate Governance
Basic Policies and Systems

Messages from Outside Directors -Roles and Activities of Outside Directors-

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. We also place importance on information disclosure while engaging vigorously in IR
activities, both within and outside of the company, including by holding financial results briefings for investors and analysts, and byvisiting institutional investors to explain our business results.
The company observes the principles put forth by Japan’s Corporate Governance Code, which was formulated by the Tokyo
Stock Exchange, using these policies as guidelines for corporate governance and carrying out detailed inspections and reviews oforganizational structures.

History of ALSOK’s Corporate Governance

Audit &
Supervisory Board

Board ofDirectors

Year

2003

Number ofMembers2023

June 2002

Introduction of the Executive Officer System

November 2002

Formulation of the Compliance Rules

December 2002

Formulation of the Risk Management Rules

2007

2009

2013

2015

2016

2022

2023

7

8

7

8

10

12

11

2009

2016

2017

2023

August 2004

Formulation of the Basic Information Security Policy

1

2

3

4

December 2004

Formulation of the Personal Information Security Policy

May 2006

Formulation of the Basic Policy Concerning
the Internal Control System

July 2009

Formulation of Information Asset Management Rules

April 2016

Setting up of an external reporting hotline
under the ALSOK Hotline

OutsideNumber ofMembers
OutsideRevisions to the Rules

2008

2009

2023

4

5

4

2003

2006

2023

3

2

3

April 2004

December 2021

Setting up of the ALSOK Hotline

Establishment of the ALSOK Business Partner Hotline

We will respond to increasingly diverse needs for safety and peace of mind by further elevating corporate value and refining internal control.

Hirotomo Suetsugu

Toshie Ikenaga

Attendance at Board of Directors’ Meetings
15 times (met 15 times)

Attendance at Board of Directors’ Meetings
15 times (met 15 times)

As an outside Director, I will contribute to the further
development of ALSOK by offering timely, appropriate opinions
and advice drawing on the knowledge and experience I acquired
during my many years of work in corporate value enhancement
and risk management for a steel manufacturer, including safetyand disaster prevention management, environmental measures,and measures to prevent accidents and incidents.
Amid the ongoing maturation of the domestic market, I work
constantly to help upgrade our existing businesses, explore newmarkets and globalize our operations. I will support thecompany’s steady growth and increasing corporate value byoffering advice in fields including business operations andmarketing from my perspective as an outside Director, based on
our future-oriented strategic medium-term management plan.
As an outside Director, I will apply my broad-based experienceas I contribute to helping improve internal control and risk
management so that the company can strengthen our system ofsound business operations and prevent accidents and incidents
as we deal quickly and appropriately with the new external risks
that emerge every day in responding to bewilderingly rapidchanges in social and economic trends.

Our company plays a very important role in providing individuals
and society with safety and security. As a company for whichtrust and confidence are especially important, we are highly
sensitive to governance, and have put in place a highly refinedsystem. I think it is important that we continue to verify theeffectiveness of this system, revise it when necessary, andmake sure that it pervades our awareness and actions.
Outside Directors are the same as internal management in thesense that they both seek to achieve sustained growth andincreased corporate value for the company. From their
independent perspective, however, the former work to bring up
problems with practices the company has taken for granted
internally, and to encourage more rapid responses to change.
Amid the diversification of the ways in which we must provide
safety and security, our opportunities are also expanding. For
example, as the company spreads its wings to provide security
for places with numerous female customers, and for personal
services, general property management and fire protection
services, as well as nursing care, the power of women will
become ever more important. For my part, I intend to contributeto women’s participation and advancement in our company.

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 June 27, 2023, the Board of Directors is comprised of 11 directors, 4 of which are outside directors, and 4 Audit & Supervisory
Board members, 3 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 ofduties by Directors and executive officers. The Management Committee, which is chaired by the Representative Director, Group CEO
meets twice a month, in principle, to determine the agenda items to be presented to the Board of Directors and to discuss theoperational 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 concerning audits. In addition, one Audit &Supervisory Board Member attends the Management Committee to appropriately monitor the status of management execution.
General Shareholders’ Meeting
Board of Directors’
meeting (monthly)

Consultation

4 Outside Directors
7 Internal Directors

Total 11

Discussions about Operational Policies on Business Affairs

ReportManagement Committee (twice monthly) Met 2 times
Group CEO (Chief Executive Officer)

Nomination andRemuneration Committee
Committees

Risk Management Committee
Compliance Committee
Internal Audits

Audit &
3 Outside Audit & Supervisory Board Members
Supervisory 1 Internal Audit & Supervisory Board Member
Board
Total 4(includes 2 part-time Audit & Supervisory Board Members)

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

Inspection Department

Group COO (Chief Operating Officer), President
Discussions about Operational Policies on Business Affairs
OperatingCommittee monthly

Executive Officers 6 Directors/Executive Officers
15 Executive Officers
Total 21

Internal Control
Operations

Legal Consultation

Advisory Contracts with Attorneys in Specialized Fields

Kenji Iwasaki

Attendance at Board of Directors’ Meetings
12 times (met 12 times*)

Attendance at Board of Directors’ Meetings
12 times (met 12 times*)

In order to help us fulfill GD2025, our Medium-Term Management Plan
that defines our medium-term future vision, I provide our managementwith supervision and advice from the objective perspective of diverse
knowledge and experience regarding whether we are optimally
allocating resources (people, money, goods, etc.) and managing risks.
Sometimes it can be difficult to understand how our daily businessactivities relate to GD2025, so I encourage employees to think carefully
about this relationship as they perform their business activities. When it
comes to this array of responses, I take care to provide the full range ofstakeholders including employees, shareholders and investors, with
explanations that enable understanding, and I advise members ofmanagement to keep their own thinking and explanations from lapsing
into self-justification or self-centeredness.
The Board of Directors holds vigorous debates regarding what
responses are most appropriate to the group in complying with the
Corporate Governance Code, with its requirement to “Comply or
explain.” The ALSOK Group thus continues to manage itself soundly
and transparently so that we can continue to perform governanceenabling us to enhance our corporate value by contributing to solvingsocial issues.

Based on the knowledge and experience that my many
years of work at other companies has given me, I strive
continually to express my opinions from an independent,
objective, and neutral point of view, and also toconscientiously supervise the representative Directors
and the Directors in charge of operations in theexecution of their duties.
In doing so, I participate in Board of Directors
meetings and other company events, and effectively
gather information by communicating actively with senior
management and other officers and employees within
the company, with the Audit & Supervisory Board, andwith the Internal Audit Department.
This company is to be highly commended forundertaking corporate governance proactively and in
earnest. As an outside Director, I intend to contribute to
the further elevation and strengthening of corporate
governance, and to the further enhancement of ourcorporate value.

Legal Office(as of June 27, 2023)

42

Masahiko Mishima(frequency after June 24, 2022)

ALSOK REPORT 2023

43

Sustainability and ESG

Corporate Governance
Basic Policies and Systems

Messages from Outside Directors -Roles and Activities of Outside Directors-

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. We also place importance on information disclosure while engaging vigorously in IR
activities, both within and outside of the company, including by holding financial results briefings for investors and analysts, and byvisiting institutional investors to explain our business results.
The company observes the principles put forth by Japan’s Corporate Governance Code, which was formulated by the Tokyo
Stock Exchange, using these policies as guidelines for corporate governance and carrying out detailed inspections and reviews oforganizational structures.

History of ALSOK’s Corporate Governance

Audit &
Supervisory Board

Board ofDirectors

Year

2003

Number ofMembers2023

June 2002

Introduction of the Executive Officer System

November 2002

Formulation of the Compliance Rules

December 2002

Formulation of the Risk Management Rules

2007

2009

2013

2015

2016

2022

2023

7

8

7

8

10

12

11

2009

2016

2017

2023

August 2004

Formulation of the Basic Information Security Policy

1

2

3

4

December 2004

Formulation of the Personal Information Security Policy

May 2006

Formulation of the Basic Policy Concerning
the Internal Control System

July 2009

Formulation of Information Asset Management Rules

April 2016

Setting up of an external reporting hotline
under the ALSOK Hotline

OutsideNumber ofMembers
OutsideRevisions to the Rules

2008

2009

2023

4

5

4

2003

2006

2023

3

2

3

April 2004

December 2021

Setting up of the ALSOK Hotline

Establishment of the ALSOK Business Partner Hotline

We will respond to increasingly diverse needs for safety and peace of mind by further elevating corporate value and refining internal control.

Hirotomo Suetsugu

Toshie Ikenaga

Attendance at Board of Directors’ Meetings
15 times (met 15 times)

Attendance at Board of Directors’ Meetings
15 times (met 15 times)

As an outside Director, I will contribute to the further
development of ALSOK by offering timely, appropriate opinions
and advice drawing on the knowledge and experience I acquired
during my many years of work in corporate value enhancement
and risk management for a steel manufacturer, including safetyand disaster prevention management, environmental measures,and measures to prevent accidents and incidents.
Amid the ongoing maturation of the domestic market, I work
constantly to help upgrade our existing businesses, explore newmarkets and globalize our operations. I will support thecompany’s steady growth and increasing corporate value byoffering advice in fields including business operations andmarketing from my perspective as an outside Director, based on
our future-oriented strategic medium-term management plan.
As an outside Director, I will apply my broad-based experienceas I contribute to helping improve internal control and risk
management so that the company can strengthen our system ofsound business operations and prevent accidents and incidents
as we deal quickly and appropriately with the new external risks
that emerge every day in responding to bewilderingly rapidchanges in social and economic trends.

Our company plays a very important role in providing individuals
and society with safety and security. As a company for whichtrust and confidence are especially important, we are highly
sensitive to governance, and have put in place a highly refinedsystem. I think it is important that we continue to verify theeffectiveness of this system, revise it when necessary, andmake sure that it pervades our awareness and actions.
Outside Directors are the same as internal management in thesense that they both seek to achieve sustained growth andincreased corporate value for the company. From their
independent perspective, however, the former work to bring up
problems with practices the company has taken for granted
internally, and to encourage more rapid responses to change.
Amid the diversification of the ways in which we must provide
safety and security, our opportunities are also expanding. For
example, as the company spreads its wings to provide security
for places with numerous female customers, and for personal
services, general property management and fire protection
services, as well as nursing care, the power of women will
become ever more important. For my part, I intend to contributeto women’s participation and advancement in our company.

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 June 27, 2023, the Board of Directors is comprised of 11 directors, 4 of which are outside directors, and 4 Audit & Supervisory
Board members, 3 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 ofduties by Directors and executive officers. The Management Committee, which is chaired by the Representative Director, Group CEO
meets twice a month, in principle, to determine the agenda items to be presented to the Board of Directors and to discuss theoperational 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 concerning audits. In addition, one Audit &Supervisory Board Member attends the Management Committee to appropriately monitor the status of management execution.
General Shareholders’ Meeting
Board of Directors’
meeting (monthly)

Consultation

4 Outside Directors
7 Internal Directors

Total 11

Discussions about Operational Policies on Business Affairs

ReportManagement Committee (twice monthly) Met 2 times
Group CEO (Chief Executive Officer)

Nomination andRemuneration Committee
Committees

Risk Management Committee
Compliance Committee
Internal Audits

Audit &
3 Outside Audit & Supervisory Board Members
Supervisory 1 Internal Audit & Supervisory Board Member
Board
Total 4(includes 2 part-time Audit & Supervisory Board Members)

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

Inspection Department

Group COO (Chief Operating Officer), President
Discussions about Operational Policies on Business Affairs
OperatingCommittee monthly

Executive Officers 6 Directors/Executive Officers
15 Executive Officers
Total 21

Internal Control
Operations

Legal Consultation

Advisory Contracts with Attorneys in Specialized Fields

Kenji Iwasaki

Attendance at Board of Directors’ Meetings
12 times (met 12 times*)

Attendance at Board of Directors’ Meetings
12 times (met 12 times*)

In order to help us fulfill GD2025, our Medium-Term Management Plan
that defines our medium-term future vision, I provide our managementwith supervision and advice from the objective perspective of diverse
knowledge and experience regarding whether we are optimally
allocating resources (people, money, goods, etc.) and managing risks.
Sometimes it can be difficult to understand how our daily businessactivities relate to GD2025, so I encourage employees to think carefully
about this relationship as they perform their business activities. When it
comes to this array of responses, I take care to provide the full range ofstakeholders including employees, shareholders and investors, with
explanations that enable understanding, and I advise members ofmanagement to keep their own thinking and explanations from lapsing
into self-justification or self-centeredness.
The Board of Directors holds vigorous debates regarding what
responses are most appropriate to the group in complying with the
Corporate Governance Code, with its requirement to “Comply or
explain.” The ALSOK Group thus continues to manage itself soundly
and transparently so that we can continue to perform governanceenabling us to enhance our corporate value by contributing to solvingsocial issues.

Based on the knowledge and experience that my many
years of work at other companies has given me, I strive
continually to express my opinions from an independent,
objective, and neutral point of view, and also toconscientiously supervise the representative Directors
and the Directors in charge of operations in theexecution of their duties.
In doing so, I participate in Board of Directors
meetings and other company events, and effectively
gather information by communicating actively with senior
management and other officers and employees within
the company, with the Audit & Supervisory Board, andwith the Internal Audit Department.
This company is to be highly commended forundertaking corporate governance proactively and in
earnest. As an outside Director, I intend to contribute to
the further elevation and strengthening of corporate
governance, and to the further enhancement of ourcorporate value.

Legal Office(as of June 27, 2023)

42

Masahiko Mishima(frequency after June 24, 2022)

ALSOK REPORT 2023

43

Sustainability and ESG

Corporate Governance
Composition of the Board of Directors

Nomination and Remuneration Committee

Our Board of Directors includes several Directors with background experience in industry and the public sector, in addition to thosewith a wealth of in-house experience, for a board composition with well-balanced and diverse knowledge, experience, and capabilities.
The Board of Directors meets once a month in principle, in addition to meetings to be called as needed. It met 15 times during the
fiscal year ended March 31, 2023.

The company has established a Nomination and Remuneration Committee as avoluntary advisory body to the Board of Directors.
The committee’s purpose is to ensure that the method by which the nomination andremuneration of Directors is determined remains objective and transparent, while also
further enriching the corporate governance system. Committee membership is
composed from the perspective of fulfillment of expected roles, with the majority ofmembers being Independent Outside Directors, and the Representative Director andGroup CEO serving as committee chair.

Key Resolutions and Reports for the fiscal year ended March 31, 2023
Matters for Resolution

Matters for Reporting

Matters Concerning the General Shareholders’ Meeting
Matters Concerning Financial Results

Progress and Results of the Execution of Board of Directors
Resolutions• Status of Initiatives on GD2025 Priority Measures

Matters Concerning Directors

Monthly State of Management

Organizational and Personnel Matters• Establishment of the Nomination and Remuneration Committee, etc.

Other Matters Deemed Necessary by the Board of Directors• Status of Initiatives on Social, Environmental, and Other Issues• Status of Internal Audits• Status of Risk Management Committee Activities, etc.

Matters Concerning Maintenance of the Internal Control System
Matters Concerning Management

Effectiveness Assessment
In order to evaluate the effectiveness of the Board of Directors, we administered a questionnaire on this subject to all Directors and Audit &Supervisory Board Members. From the perspective of ensuring objectivity and transparency, in principle, the survey responses are made to an
external organization, and the aggregated results are reported by the external organization.
In accord with the opinions presented through the evaluation, the Company will strive to improve the effectiveness of the Board of Directors.

Main Opinions Presented in the Course of Effectiveness Assessment
Opinions
The monitoring function is operating appropriately with respect to important management issues (establishment of the Nomination andRemuneration Committee, risk management, and various investment projects).
• Although there are some areas in which improvement is needed, we commend the Board of Directors for enlivening its deliberations.
Moving forward, we should positively consider shifting the function of the Board of Directors a bit more toward a supervisory function.
• By holding supplementary meetings, the Board of Directors is able to address the whole agenda through free and active exchanges of ideas.
• We look forward to enhancement of discussions regarding full-fledged promotion of active participation by women, the development of highly
specialized senior management executives, and other matters concerning human capital.
• Once each year, a training session is held for officers, which we believe to be an important opportunity for executive officers to be exposed toimportant issues under consideration.
We should consider further enhancement moving forward.
• We look forward to increased opportunities to check on (inspect) the situation out in the field.
•

Composition of the Board of Directors and Skill Matrix

44

Position

Corporate Management(including sustainability)

Finance/
Accounting

Legal Affairs/
Compliance

IT/Digital●

Tsuyoshi Murai

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

Ikuji Kayaki

Representative Director, Group COO
Senior Executive President●●

Motohisa Suzuki

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

●
●

●

●

●

●

Global Business●●●

Human Resources
Management(security, facility management
and long-term care)

●

●

●

●

●

●

●

●
●

●

●
●

●
●
●
●

●
●
●

Industry

Sales/
Marketing●●●

Position

Name

Representative Director,
Group CEOTsuyoshi Murai

Outside Directors

Hirotomo Suetsugu

Outside Directors

Toshie Ikenaga

Activities of the Business Investment Review Committee
We have established a Business Investment Review Committee, as of October 1, 2022.
The committee shares the objectives of business expansion investment projects such as corporate acquisitions and business transfers,
and considers the various risks involved, such as operational business issues including the quantitative aspects, as well as the humanresources aspects of engaging in and operating the projects.
The committee is composed of the Representative Director and Group CEO, who serves as chairperson, the Representative Director
and Group COO, who serves as vice-chairperson, as well as the officers in charge of General Affairs/PR, Corporate Planning &Administration, Strategic Business, Financial & Accounting, Human Resources Affairs, officers in charge of projects, and other members
appointed by the chairperson. The committee holds meetings for projects as needed. It met 8 times during the fiscal year under review.

Policies and Methods for Deciding Remuneration Amounts
The maximum amount of total remuneration for company Directors is 400 million yen, and the 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 Remuneration and Performance-linked Remuneration
The performance-linked remuneration for the Company’s directors (excluding outside Directors) is the predetermined remuneration(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%

Performance-linked Remuneration 45%

Fixed remuneration (monthly payment x 12 months)
55%

Short-term incentive
30%

Medium- to long-term incentive
15%

Indicators Pertaining to Performance-linked Remuneration, Reason for Selecting Said Indicators, and Methodof Determining the Amount of Performance-linked Remuneration

The composition of the Board of Directors and the expertise and experience of each Director are as follows.
Name

Composition of Committee Members●●

In calculating predetermined remuneration, which is linked with performance, the company’s performance payout ratio for short-term incentives iscalculated based on a reference index (consolidated operating income + equity in earnings of affiliates + consolidated bonus), which is adjusted forconsolidated operating income, while the company’s performance payout ratio for medium- to long-term incentives is calculated based on thethree-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 rateby the standard amount.

About the Audit & Supervisory Board
As of June 27, 2023, the Audit & Supervisory Board consists of 4 members (including 3 outside members), 1 of whom has extensive financial andaccounting expertise. In addition, 2 full-time employees are assigned to the Audit & Supervisory Board Secretariat to assist the auditors in their work duties,
and personnel transfers and evaluations of these employees is subject to the consent of the Audit & Supervisory Board Members, which increases their
independence from Directors, ensuring the effectiveness of the auditors’ instructions.
The Audit & Supervisory Board meets once a month, in principle, to discuss and make decisions based on reports on important matters concerning audits.
In addition, one Audit & Supervisory Board Member attends the Management Committee to appropriately monitor the status of management execution.
The Audit & Supervisory Board met 17 times during the fiscal year ended March 31, 2023. Members of the Audit & Supervisory Board report, deliberate
and resolve important matters concerning audits, audit policy and audit planning. The activities engaged in only by the full-time Audit & Supervisory Board
Members, and the details of on-site audits by each auditor, are reported to the other auditors at meetings of the Audit & Supervisory Board, etc.
ALSOK REPORT 2023

45

Sustainability and ESG

Corporate Governance
Composition of the Board of Directors

Nomination and Remuneration Committee

Our Board of Directors includes several Directors with background experience in industry and the public sector, in addition to thosewith a wealth of in-house experience, for a board composition with well-balanced and diverse knowledge, experience, and capabilities.
The Board of Directors meets once a month in principle, in addition to meetings to be called as needed. It met 15 times during the
fiscal year ended March 31, 2023.

The company has established a Nomination and Remuneration Committee as avoluntary advisory body to the Board of Directors.
The committee’s purpose is to ensure that the method by which the nomination andremuneration of Directors is determined remains objective and transparent, while also
further enriching the corporate governance system. Committee membership is
composed from the perspective of fulfillment of expected roles, with the majority ofmembers being Independent Outside Directors, and the Representative Director andGroup CEO serving as committee chair.

Key Resolutions and Reports for the fiscal year ended March 31, 2023
Matters for Resolution

Matters for Reporting

Matters Concerning the General Shareholders’ Meeting
Matters Concerning Financial Results

Progress and Results of the Execution of Board of Directors
Resolutions• Status of Initiatives on GD2025 Priority Measures

Matters Concerning Directors

Monthly State of Management

Organizational and Personnel Matters• Establishment of the Nomination and Remuneration Committee, etc.

Other Matters Deemed Necessary by the Board of Directors• Status of Initiatives on Social, Environmental, and Other Issues• Status of Internal Audits• Status of Risk Management Committee Activities, etc.

Matters Concerning Maintenance of the Internal Control System
Matters Concerning Management

Effectiveness Assessment
In order to evaluate the effectiveness of the Board of Directors, we administered a questionnaire on this subject to all Directors and Audit &Supervisory Board Members. From the perspective of ensuring objectivity and transparency, in principle, the survey responses are made to an
external organization, and the aggregated results are reported by the external organization.
In accord with the opinions presented through the evaluation, the Company will strive to improve the effectiveness of the Board of Directors.

Main Opinions Presented in the Course of Effectiveness Assessment
Opinions
The monitoring function is operating appropriately with respect to important management issues (establishment of the Nomination andRemuneration Committee, risk management, and various investment projects).
• Although there are some areas in which improvement is needed, we commend the Board of Directors for enlivening its deliberations.
Moving forward, we should positively consider shifting the function of the Board of Directors a bit more toward a supervisory function.
• By holding supplementary meetings, the Board of Directors is able to address the whole agenda through free and active exchanges of ideas.
• We look forward to enhancement of discussions regarding full-fledged promotion of active participation by women, the development of highly
specialized senior management executives, and other matters concerning human capital.
• Once each year, a training session is held for officers, which we believe to be an important opportunity for executive officers to be exposed toimportant issues under consideration.
We should consider further enhancement moving forward.
• We look forward to increased opportunities to check on (inspect) the situation out in the field.
•

Composition of the Board of Directors and Skill Matrix

44

Position

Corporate Management(including sustainability)

Finance/
Accounting

Legal Affairs/
Compliance

IT/Digital●

Tsuyoshi Murai

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

Ikuji Kayaki

Representative Director, Group COO
Senior Executive President●●

Motohisa Suzuki

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

●
●

●

●

●

●

Global Business●●●

Human Resources
Management(security, facility management
and long-term care)

●

●

●

●

●

●

●

●
●

●

●
●

●
●
●
●

●
●
●

Industry

Sales/
Marketing●●●

Position

Name

Representative Director,
Group CEOTsuyoshi Murai

Outside Directors

Hirotomo Suetsugu

Outside Directors

Toshie Ikenaga

Activities of the Business Investment Review Committee
We have established a Business Investment Review Committee, as of October 1, 2022.
The committee shares the objectives of business expansion investment projects such as corporate acquisitions and business transfers,
and considers the various risks involved, such as operational business issues including the quantitative aspects, as well as the humanresources aspects of engaging in and operating the projects.
The committee is composed of the Representative Director and Group CEO, who serves as chairperson, the Representative Director
and Group COO, who serves as vice-chairperson, as well as the officers in charge of General Affairs/PR, Corporate Planning &Administration, Strategic Business, Financial & Accounting, Human Resources Affairs, officers in charge of projects, and other members
appointed by the chairperson. The committee holds meetings for projects as needed. It met 8 times during the fiscal year under review.

Policies and Methods for Deciding Remuneration Amounts
The maximum amount of total remuneration for company Directors is 400 million yen, and the 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 Remuneration and Performance-linked Remuneration
The performance-linked remuneration for the Company’s directors (excluding outside Directors) is the predetermined remuneration(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%

Performance-linked Remuneration 45%

Fixed remuneration (monthly payment x 12 months)
55%

Short-term incentive
30%

Medium- to long-term incentive
15%

Indicators Pertaining to Performance-linked Remuneration, Reason for Selecting Said Indicators, and Methodof Determining the Amount of Performance-linked Remuneration

The composition of the Board of Directors and the expertise and experience of each Director are as follows.
Name

Composition of Committee Members●●

In calculating predetermined remuneration, which is linked with performance, the company’s performance payout ratio for short-term incentives iscalculated based on a reference index (consolidated operating income + equity in earnings of affiliates + consolidated bonus), which is adjusted forconsolidated operating income, while the company’s performance payout ratio for medium- to long-term incentives is calculated based on thethree-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 rateby the standard amount.

About the Audit & Supervisory Board
As of June 27, 2023, the Audit & Supervisory Board consists of 4 members (including 3 outside members), 1 of whom has extensive financial andaccounting expertise. In addition, 2 full-time employees are assigned to the Audit & Supervisory Board Secretariat to assist the auditors in their work duties,
and personnel transfers and evaluations of these employees is subject to the consent of the Audit & Supervisory Board Members, which increases their
independence from Directors, ensuring the effectiveness of the auditors’ instructions.
The Audit & Supervisory Board meets once a month, in principle, to discuss and make decisions based on reports on important matters concerning audits.
In addition, one Audit & Supervisory Board Member attends the Management Committee to appropriately monitor the status of management execution.
The Audit & Supervisory Board met 17 times during the fiscal year ended March 31, 2023. Members of the Audit & Supervisory Board report, deliberate
and resolve important matters concerning audits, audit policy and audit planning. The activities engaged in only by the full-time Audit & Supervisory Board
Members, and the details of on-site audits by each auditor, are reported to the other auditors at meetings of the Audit & Supervisory Board, etc.
ALSOK REPORT 2023

45

Sustainability and ESG

Directors, Audit & Supervisory Board Members, and Executive Officers(As of June 27, 2023)

Directors

Audit & Supervisory Board Members

Director (outside Director)
Representative Director

Director (Senior Executive Officer)

Director (outside)

Full-time Audit & Supervisory Board Member

Tsuyoshi Murai

Takashi Kumagai

Hirotomo Suetsugu

Juichiro Mochizuki

In charge of long-term Care Services, Deputy Chief Officer of Business Promotion Division
President and Representative Director of Life Holdings Co., Ltd.
President and Representative Direcotor of Life Co., Ltd.
President and Representative Direcotor of MBIC Life Co.,Ltd.
President and Representative Director of ALSOK CARE CO., LTD.

Group CEO Chief Executive Officer
and CTO (Chief Technology Officer)

1999.7 Joined the Company
2007.6 General Manager of Home Marketing Division
2010.4 Appointed Executive Officer, Chief Officer of Regional Division (I)2011.2 In charge of General Property Management
2011.3 Representative Director of Japan Facilio Co., Ltd.
(resigned in March 2014)2014.4 Appointed Senior Executive Officer, Deputy Chief Officer of Business Promotion Division, in charge ofsales planning and management, and regional finance sales
2016.4 In charge of Human Resources Affairs and Corporate Ethics
2016.6 Appointed Director and Senior Executive Officer
2018.4 In charge of General Affairs/PR, Compliance, Risk Management, and Information Assets Management
Chief Officer of Tokyo 2020 Olympic and Paralympic Games Promotion Affairs
2018.5 In charge of Central Japan Area, Deputy Chief Officer of Business Promotion Division, in charge ofCentral Japan Area Sales
2019.4 Executive Vice President and Director, in charge of Promotion, Tokyo 2020 Olympic andParalympic Games Promotion Affairs
2020.4 In charge of Management Company
2022.4 In charge of R&D Engineering Affairs
2022.6 Appointed Representative Director (Current), Group CEO (Current), and CTO (Current)(Major concurrent positions)2019.6 Appointed Deputy Chairperson of the All Japan Security Service Association (Current)
2021.12 Appointed Representative Director of Sogo Shoji Limited (Current)
2022.6 Appointed Chairperson of the Tokyo Security Service Association (Current)

Representative Director (Senior Executive President)

Ikuji KayakiGroup COO (Chief Operation Officer)
In charge of East Japan Area, Chief Officer of Business Promotion Division

Joined the Company
Chief Officer of Regional Division (IV)
Appointed Executive Officer
Deputy Chief of Operations, in charge of Structural Reform of Transportation Security Services
Appointed Senior Executive Officer, Chief Officer of Security Operations
Appointed Director and Senior Executive Officer
Executive Vice President and Representative Director, General Manager of ALSOK Company
In charge of East Japan Area (Current), Deputy Chief Officer of Business Promotion Division,in charge of Corporate Customers
2019.4 Appointed Vice President and Representative Director, Senior Executive Vice President, Chief Officer
of Business Promotion Division (Current)
In charge of Corporate Customers, in charge of East Japan Area Business2022.6 Appointed Representative Director (Current)
Appointed Group COO (Current)
Appointed Senior Executive President (Current)

2014.7 Director General, Reconstruction Agency (resigned in June 2016)2016.10 Appointed Executive Officer of the Company, Second in Charge ofManagement Company, Second in Charge of Regional Management, Second in charge of R&D
Engineering Affairs,
Deputy Chief Officer of Business Promotion Division, Second in Charge of Sales Promotion,
Second in Charge of Corporate Customers
2017.4 Appointed Senior Executive Officer, in charge of Long-Term Care (Current), in Charge ofManagement Company, in Charge of Regional Management, Deputy Chief Officer of Business
Promotion Division, Second in Charge of Sales Promotion
2018.4 Deputy Chief Officer of Business Promotion Division, in charge of HOME ALSOK
2020.4 Deputy Chief Officer of Business Promotion Division (Current) Appointed President and Representative
Director of Life Holdings Co., Ltd. (Current)
Appointed President and Representative Director of Life Co., Ltd. (Current) Appointed President andRepresentative Director of MBIC Life Co., Ltd. (Current)
2022.4 Appointed President and Representative Director of ALSOK CARE CO., LTD. (Current)
2022.6 Appointed Director and Senior Executive Officer (Current)

2009.4 Appointed Executive Officer of Nippon Steel Corporation

1982.4 Joined the Company
2012.8 General Manager of Security Services Dept. No.1
2014.4 Transferred to Ibaraki Sohgo Security Services (currently ALSOK Ibaraki Co., Ltd.)
Appointed President and Representative Director (resigned in March 2020)
2020.4 Chief Officer of Regional Division (VI)2021.4 Chief Officer of Regional Division (VII)2022.6 Appointed Full-time Audit & Supervisory Board Member of
SOHGO SECURITY SERVICES CO., LTD. (Current)(currently NIPPON STEEL CORPORATION) (resigned in June 2012)2012.6 Appointed Audit & Supervisory Board Member of Nippon Steel Corporation(currently NIPPON STEEL CORPORATION) (resigned in June 2016)2016.6 Appointed Advisor of NIPPON STEEL & SUMITOMO METAL CORPORATION(currently NIPPON STEEL CORPORATION) (resigned in June 2019)

Appointed Advisor of Nippon Denko Co., Ltd. (resigned in June 2021)
2020.6 Appointed Director of SOHGO SECURITY SERVICES CO., LTD. (Current)

Director (Senior Executive Officer)

Director (outside)

Full-time Audit & Supervisory Board Member (Outside)

Kazuhide Shigemi

Toshie Ikenaga

Shinichiro Nakano

In charge of Financial & Accounting,Internal Control, Procurement

2009.4

Mizuho Corporate Bank, Ltd. (currently Mizuho Bank, Ltd.)
General Manager of Osaka Sales Dept. No. 2 (resigned in April 2012)
General Manager of the Regional General Administration Department of the Company
General Manager of Group Management Department
General Manager of Corporate Planning & Administration Department
Appointed Executive Officer, Second in Charge of Corporate Planning & Administration,
Second in Charge of Strategic Business2019.4 Appointed Senior Executive Officer, in Charge of Corporate Planning & Administration,
in Charge of Strategic Business2022.6 Appointed Director and Senior Executive Officer (Current)
2022.10 In charge of Financial & Accounting (Current), Internal Control (Current), Procurement (Current)
2011.52013.42015.42017.4

1982.42011.42012.42014.42015.42017.62018.4

1987.4 Joined the Economic Planning Agency
2010.9 Director of Policy Evaluation and Public Relations Division, Minister’s Secretariat,
Cabinet Office
2012.4 Professor of Hosei Graduate School of Regional Policy Design
2014.4 Director of Cabinet Office
2014.9 Director of General Affairs Division, Gender Equality Bureau, Cabinet Office2016.1 Appointed Vice-Governor of Shiga Prefecture (resigned in July 2018)2018.7 Appointed Director General of Gender Equality Bureau, Cabinet Office (resigned in August 2020)2021.6 Appointed Director of SOHGO SECURITY SERVICES CO., LTD. (Current)
2022.7 Appointed President of National Hospital Organization (Current)

2008.6 General Manager of Risk Management Division, The Norinchukin Bank
2012.6 General Manager of Planning Management Division, The Norinchukin Bank
2014.6 Appointed Managing Director of The Norinchukin Bank (resigned in March 2019)
Appointed Director of Norinchukin Value Investments Co., Ltd. (resigned in March 2018)
Appointed Director of The Norinchukin Trust & Banking Co., Ltd. (resigned in March 2019)
Appointed Auditor of Kyodo Housing Loan Co., Ltd. (resigned in June 2019)2019.4 Appointed Standing Advisor of The Norinchukin Bank (resigned in June 2019)2019.6 Appointed Full-time Audit & Supervisory Board Member of
SOHGO SECURITY SERVICES CO., LTD. (Current)(Major concurrent positions)2021.6 Appointed Outside Audit & Supervisory Board Member of Shimizu Corporation (Current)

Director (Senior Executive Officer)

Director (outside)

Audit & Supervisory Board Members (outside)

Naoki Hyakutake

Masahiko Mishima

Michiko Nagasawa

In charge of Human Resources Affairs,
Corporate Ethics

1989.4 Joined the Company
2016.4 Transferred and appointed President and Representative Director of ALSOK Care & Support Co., Ltd.
(resigned in March 2017)2017.42019.42022.42022.6

General Manager of Human Resources Department
Appointed Executive Officer, in charge of Human Resources Affairs
Appointed Senior Executive Officer, Second in charge of Human Resources Affairs
Appointed Director and Senior Executive Officer (Current)
In charge of Human Resources Affairs (Current), Corporate Ethics (Current)

2016.42018.102019.62021.6

Appointed Executive Officer of Mitsubishi Heavy Industries, Ltd.
Appointed Senior Executive Officer of Mitsubishi Heavy Industries, Ltd.
Appointed Director and Senior Executive Officer of Mitsubishi Heavy Industries, Ltd.
Appointed Senior Executive Officer of Mitsubishi Heavy Industries, Ltd.

1984.42007.42012.42013.3(resigned in September 2021)

2021.10 Appointed Advisor of Mitsubishi Heavy Industries, Ltd. (resigned in September 2022)
2022.6 Appointed Director of SOHGO SECURITY SERVICES CO., LTD. (Current)

2018.72020.42020.62020.7

Registered as an attorney-at-law
Appointed Professor of Law of Gakushuin University Law School (resigned in March 2013)
Appointed Auditor of Daini Tokyo Bar Association (resigned in March 2013)
Appointed Outside Director of OTSUKA KAGU, LTD. (resigned in March 2019)* Audit & Supervisory Committee Member from Mar. 2017
Appointed Audit & Supervisory Committee Member of Building Research Institute,
National Research and Development Agency, Ministry of Land, Infrastructure, Transport and Tourism (Current)
Appointed Audit & Supervisory Committee Member of Japan Federation of Bar Associations (resigned in March 2021)
Appointed Audit & Supervisory Board Member of SOHGO SECURITY SERVICES CO., LTD. (Current)
Appointed Vice Chairperson of Finance Committee, Japan Federation of Bar Associations (resigned in March 2022)(Major concurrent positions)2008.1 Appointed Partner at The Tokyo-Marunouchi Law Offices (Current)
2019.6 Appointed Outside Director of SB Players Corp. (Current)
2020.6 Appointed Outside Audit & Supervisory Board Member of Sojitz Corporation (Current)

Director (Executive Vice President)

Director (Senior Executive Officer)

Director (outside)

Audit & Supervisory Board Members (outside)

Motohisa Suzuki

Yutaka Komatsu

Kenji Iwasaki

Yoshiaki Nakagawa

In charge of General Affairs/PR, Compliance, Risk Management,
Information Asset Management, Quaity Management,
Affiliated Corporate, International Affairs
Chief Officer of International Affairs Division,
Deputy Chief Officer of Business Promotion Division

Stationed in the Kansai Region
In charge of West Japan Area, In charge of Expo 2025 Osaka, Kansai, Japan (General)
Deputy Chief Officer of Business Promotion Division, in charge of West Japan Area
Business, Chief Officer of Regional Division (II)2015.1 Appointed Director of Traffic Bureau, National Police Agency (resigned in January 2016)2016.4 Appointed Senior Executive Officer of the Company, in charge of General Affairs/PR and Procurement,
Deputy Chief Officer of Security Operations (in charge of operational affairs, Tokyo 2020 Olympic and Paralympic Games)
In charge of HOME ALSOK, Compliance, Risk Management, and Information Asset Management,
Deputy Chief Officer of Business Promotion Division
2018.4 In Charge of Security Operation Affairs, in charge of Structural Reform of Transportation Security Services,
Deputy Chief Officer of Tokyo 2020 Olympic and Paralympic Games Promotion Affairs
2019.4 Chief Officer of Tokyo 2020 Olympic and Paralympic Games Promotion Affairs
2019.6 Appointed Director and Senior Executive Officer
2022.6 In charge of General Affairs/PR (Current), Compliance (Current), Risk Management (Current), Information AssetManagement (Current), Management Company, International Affairs (Current), Chief Officer of International Affairs
Division (Current)
2022.8 Deputy Chief Officer of Business Promotion Division (Current)
2023.4 Appointed Director and Executive Vice President (Current), in charge of Quality Management (Current),
in charge of Affiliated Corporate (Current)

Executive
Officer46

1981.3 Joined the Company
2008.4 General Manager of Corporate Sales Division 1
2014.10 Transferred and appointed President and Representative Director of Hokkaido Sohgo Security
Services Co., Ltd. (currently ALSOK Hokkaido Co., Ltd.)
2020.4 Appointed Executive Officer, appointed President and Representative Director of ALSOK Hokkaido
Co., Ltd.
2022.4 Appointed Senior Executive Officer, appointed Chairperson and Representative Director of
ALSOK Hokkaido Co., Ltd.
2022.6 Appointed Director and Senior Executive Officer (Current)
In charge of West Japan Area (Current) In charge of Expo 2025 Osaka, Kansai, Japan (General) (Current)
Deputy Chief Officer of Business Promotion Division (Current), in charge of West Japan Area
Business (Current), Chief Officer of Regional Division (II) (Current)
Appointed Chairperson, President, and Representative Director of ALSOK KINKI Co., Ltd.
Appointed Chairperson and Representative Director of ALSOK OSAKA Co., Ltd.

2009.6
2010.62014.42017.42017.62018.62022.62022.7

Appointed Executive Officer of Tokio Marine & Nichido Fire Insurance Co., Ltd.
Appointed Managing Director of Tokio Marine & Nichido Fire Insurance Co., Ltd.
Appointed Executive Director of Tokio Marine & Nichido Fire Insurance Co., Ltd.
Appointed Vice President and Representative Director of Tokio Marine & Nichido Fire
Insurance Co., Ltd. (resigned in March 2018), Appointed the position of Senior Executive Vice President of
Tokio Marine Holdings, Inc.
Appointed Vice President and Representative Director of Tokio Marine Holdings, Inc. (resigned in June 2018)
Appointed Executive Director of General Insurance Association of Japan (resigned in June 2022)
Appointed Director of SOHGO SECURITY SERVICES CO., LTD. (Current)
Audit & Supervisory Board Member of Daiichi Seiwa Jimusho Co., Ltd. (Current)(Major concurrent positions)1990.92001.1
2009.42011.62014.42017.42018.42020.82021.6

Appointed Director and CFO of Matsushita Radio Singapore Pte. Ltd. (resigned in May 1996)
Appointed Chief Accountant of China Hualu Matsushita AVC Co., LTD. (resigned in January 2004)
Appointed Executive Officer of Panasonic Corporation (currently Panasonic Holdings Co., Ltd.)
Appointed Managing Director of Panasonic Corporation (currently Panasonic Holdings Co., Ltd.)
Appointed President and Representative Director of SANYO Electric Co., Ltd. (resigned in March 2017)
Appointed Advisor of Panasonic Corporation (currently Panasonic Holdings Co., Ltd.) (resigned in March 2018)
Appointed Special Advisor of Hardlock Industry Co., Ltd. (Current)
Appointed Advisor of Uokuni Sohonsha Co.,Ltd. (Current)
Appointed Audit & Supervisory Board Member of SOHGO SECURITY SERVICES CO., LTD. (Current)(Major concurrent positions)2020.6 Appointed Outside Auditor of ASANUMA CORPORATION (Current)

2022.6 Appointed President and Representative Director of HMS Holdings Co., Ltd. (Current)
2023.6 Appointed Director and Audit & Supervisory Committee member ofJapan Airport Terminal Co., Ltd. (Expected)

Shinichiro Hayashi

Seiji Ono

Hiroyuki Ono

Yutaka Miyajima Hiroyoshi Yoshida

Ken Takahashi

Tetsuya Tsuburaya

Masahiro Kikukawa Wataru Saito

Kengo Takeda

Masayuki Chikaoka Kenichi Kakimoto

Senior Executive Officer

Senior Executive Officer

Senior Executive Officer

Senior Executive Officer

Senior Executive Officer

Senior Executive Officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer

In charge of Corporate
Planning & Administration,
Business Strategies
Deputy Chief Officer ofBusiness Promotion Division
In charge of Financial Affairs

Deputy Chief Officer ofBusiness Promotion Division
In charge of Corporate
Customers

In charge of Central Japan Area
Deputy Chief Officer ofBusiness Promotion Division
In charge of Central Japan
Area Sales
Chief Officer of Regional Division (III)In charge of Electronic Security,
HOME ALSOKIn charge of Stationed Security
In charge of Expo 2025 Osaka,
Kansai Japan (Public Relations)

In charge of Transportation
Security
In charge of Facility
Management

Second in chargeof General Affairs
General Manager
of General Affairs
Department

Second in charge ofBusiness Strategies
General Manager ofBusiness Strategies
Department

Second in chargeof R&D Engineering
Affairs

In charge ofBusiness Planning &Management

Second in charge ofCorporate Customers
General Manager ofCorporate Sales
Division 1

Chief Officer ofRegional Division (I)Executive Officer
Chief Officer ofRegional Division(IV)

Satoshi Yoneda Tomoyuki Arita

Executive Officer
Chief Officer ofRegional Division(V)

Yoshio Kumazaki
Executive Officer
In charge of Stationed
Security (Tokyo)
President andrepresentative Directorof ALSOK Tokyo
Co., Ltd.

ALSOK REPORT 2023

47

Sustainability and ESG

Directors, Audit & Supervisory Board Members, and Executive Officers(As of June 27, 2023)

Directors

Audit & Supervisory Board Members

Director (outside Director)
Representative Director

Director (Senior Executive Officer)

Director (outside)

Full-time Audit & Supervisory Board Member

Tsuyoshi Murai

Takashi Kumagai

Hirotomo Suetsugu

Juichiro Mochizuki

In charge of long-term Care Services, Deputy Chief Officer of Business Promotion Division
President and Representative Director of Life Holdings Co., Ltd.
President and Representative Direcotor of Life Co., Ltd.
President and Representative Direcotor of MBIC Life Co.,Ltd.
President and Representative Director of ALSOK CARE CO., LTD.

Group CEO Chief Executive Officer
and CTO (Chief Technology Officer)

1999.7 Joined the Company
2007.6 General Manager of Home Marketing Division
2010.4 Appointed Executive Officer, Chief Officer of Regional Division (I)2011.2 In charge of General Property Management
2011.3 Representative Director of Japan Facilio Co., Ltd.
(resigned in March 2014)2014.4 Appointed Senior Executive Officer, Deputy Chief Officer of Business Promotion Division, in charge ofsales planning and management, and regional finance sales
2016.4 In charge of Human Resources Affairs and Corporate Ethics
2016.6 Appointed Director and Senior Executive Officer
2018.4 In charge of General Affairs/PR, Compliance, Risk Management, and Information Assets Management
Chief Officer of Tokyo 2020 Olympic and Paralympic Games Promotion Affairs
2018.5 In charge of Central Japan Area, Deputy Chief Officer of Business Promotion Division, in charge ofCentral Japan Area Sales
2019.4 Executive Vice President and Director, in charge of Promotion, Tokyo 2020 Olympic andParalympic Games Promotion Affairs
2020.4 In charge of Management Company
2022.4 In charge of R&D Engineering Affairs
2022.6 Appointed Representative Director (Current), Group CEO (Current), and CTO (Current)(Major concurrent positions)2019.6 Appointed Deputy Chairperson of the All Japan Security Service Association (Current)
2021.12 Appointed Representative Director of Sogo Shoji Limited (Current)
2022.6 Appointed Chairperson of the Tokyo Security Service Association (Current)

Representative Director (Senior Executive President)

Ikuji KayakiGroup COO (Chief Operation Officer)
In charge of East Japan Area, Chief Officer of Business Promotion Division

Joined the Company
Chief Officer of Regional Division (IV)
Appointed Executive Officer
Deputy Chief of Operations, in charge of Structural Reform of Transportation Security Services
Appointed Senior Executive Officer, Chief Officer of Security Operations
Appointed Director and Senior Executive Officer
Executive Vice President and Representative Director, General Manager of ALSOK Company
In charge of East Japan Area (Current), Deputy Chief Officer of Business Promotion Division,in charge of Corporate Customers
2019.4 Appointed Vice President and Representative Director, Senior Executive Vice President, Chief Officer
of Business Promotion Division (Current)
In charge of Corporate Customers, in charge of East Japan Area Business2022.6 Appointed Representative Director (Current)
Appointed Group COO (Current)
Appointed Senior Executive President (Current)

2014.7 Director General, Reconstruction Agency (resigned in June 2016)2016.10 Appointed Executive Officer of the Company, Second in Charge ofManagement Company, Second in Charge of Regional Management, Second in charge of R&D
Engineering Affairs,
Deputy Chief Officer of Business Promotion Division, Second in Charge of Sales Promotion,
Second in Charge of Corporate Customers
2017.4 Appointed Senior Executive Officer, in charge of Long-Term Care (Current), in Charge ofManagement Company, in Charge of Regional Management, Deputy Chief Officer of Business
Promotion Division, Second in Charge of Sales Promotion
2018.4 Deputy Chief Officer of Business Promotion Division, in charge of HOME ALSOK
2020.4 Deputy Chief Officer of Business Promotion Division (Current) Appointed President and Representative
Director of Life Holdings Co., Ltd. (Current)
Appointed President and Representative Director of Life Co., Ltd. (Current) Appointed President andRepresentative Director of MBIC Life Co., Ltd. (Current)
2022.4 Appointed President and Representative Director of ALSOK CARE CO., LTD. (Current)
2022.6 Appointed Director and Senior Executive Officer (Current)

2009.4 Appointed Executive Officer of Nippon Steel Corporation

1982.4 Joined the Company
2012.8 General Manager of Security Services Dept. No.1
2014.4 Transferred to Ibaraki Sohgo Security Services (currently ALSOK Ibaraki Co., Ltd.)
Appointed President and Representative Director (resigned in March 2020)
2020.4 Chief Officer of Regional Division (VI)2021.4 Chief Officer of Regional Division (VII)2022.6 Appointed Full-time Audit & Supervisory Board Member of
SOHGO SECURITY SERVICES CO., LTD. (Current)(currently NIPPON STEEL CORPORATION) (resigned in June 2012)2012.6 Appointed Audit & Supervisory Board Member of Nippon Steel Corporation(currently NIPPON STEEL CORPORATION) (resigned in June 2016)2016.6 Appointed Advisor of NIPPON STEEL & SUMITOMO METAL CORPORATION(currently NIPPON STEEL CORPORATION) (resigned in June 2019)

Appointed Advisor of Nippon Denko Co., Ltd. (resigned in June 2021)
2020.6 Appointed Director of SOHGO SECURITY SERVICES CO., LTD. (Current)

Director (Senior Executive Officer)

Director (outside)

Full-time Audit & Supervisory Board Member (Outside)

Kazuhide Shigemi

Toshie Ikenaga

Shinichiro Nakano

In charge of Financial & Accounting,Internal Control, Procurement

2009.4

Mizuho Corporate Bank, Ltd. (currently Mizuho Bank, Ltd.)
General Manager of Osaka Sales Dept. No. 2 (resigned in April 2012)
General Manager of the Regional General Administration Department of the Company
General Manager of Group Management Department
General Manager of Corporate Planning & Administration Department
Appointed Executive Officer, Second in Charge of Corporate Planning & Administration,
Second in Charge of Strategic Business2019.4 Appointed Senior Executive Officer, in Charge of Corporate Planning & Administration,
in Charge of Strategic Business2022.6 Appointed Director and Senior Executive Officer (Current)
2022.10 In charge of Financial & Accounting (Current), Internal Control (Current), Procurement (Current)
2011.52013.42015.42017.4

1982.42011.42012.42014.42015.42017.62018.4

1987.4 Joined the Economic Planning Agency
2010.9 Director of Policy Evaluation and Public Relations Division, Minister’s Secretariat,
Cabinet Office
2012.4 Professor of Hosei Graduate School of Regional Policy Design
2014.4 Director of Cabinet Office
2014.9 Director of General Affairs Division, Gender Equality Bureau, Cabinet Office2016.1 Appointed Vice-Governor of Shiga Prefecture (resigned in July 2018)2018.7 Appointed Director General of Gender Equality Bureau, Cabinet Office (resigned in August 2020)2021.6 Appointed Director of SOHGO SECURITY SERVICES CO., LTD. (Current)
2022.7 Appointed President of National Hospital Organization (Current)

2008.6 General Manager of Risk Management Division, The Norinchukin Bank
2012.6 General Manager of Planning Management Division, The Norinchukin Bank
2014.6 Appointed Managing Director of The Norinchukin Bank (resigned in March 2019)
Appointed Director of Norinchukin Value Investments Co., Ltd. (resigned in March 2018)
Appointed Director of The Norinchukin Trust & Banking Co., Ltd. (resigned in March 2019)
Appointed Auditor of Kyodo Housing Loan Co., Ltd. (resigned in June 2019)2019.4 Appointed Standing Advisor of The Norinchukin Bank (resigned in June 2019)2019.6 Appointed Full-time Audit & Supervisory Board Member of
SOHGO SECURITY SERVICES CO., LTD. (Current)(Major concurrent positions)2021.6 Appointed Outside Audit & Supervisory Board Member of Shimizu Corporation (Current)

Director (Senior Executive Officer)

Director (outside)

Audit & Supervisory Board Members (outside)

Naoki Hyakutake

Masahiko Mishima

Michiko Nagasawa

In charge of Human Resources Affairs,
Corporate Ethics

1989.4 Joined the Company
2016.4 Transferred and appointed President and Representative Director of ALSOK Care & Support Co., Ltd.
(resigned in March 2017)2017.42019.42022.42022.6

General Manager of Human Resources Department
Appointed Executive Officer, in charge of Human Resources Affairs
Appointed Senior Executive Officer, Second in charge of Human Resources Affairs
Appointed Director and Senior Executive Officer (Current)
In charge of Human Resources Affairs (Current), Corporate Ethics (Current)

2016.42018.102019.62021.6

Appointed Executive Officer of Mitsubishi Heavy Industries, Ltd.
Appointed Senior Executive Officer of Mitsubishi Heavy Industries, Ltd.
Appointed Director and Senior Executive Officer of Mitsubishi Heavy Industries, Ltd.
Appointed Senior Executive Officer of Mitsubishi Heavy Industries, Ltd.

1984.42007.42012.42013.3(resigned in September 2021)

2021.10 Appointed Advisor of Mitsubishi Heavy Industries, Ltd. (resigned in September 2022)
2022.6 Appointed Director of SOHGO SECURITY SERVICES CO., LTD. (Current)

2018.72020.42020.62020.7

Registered as an attorney-at-law
Appointed Professor of Law of Gakushuin University Law School (resigned in March 2013)
Appointed Auditor of Daini Tokyo Bar Association (resigned in March 2013)
Appointed Outside Director of OTSUKA KAGU, LTD. (resigned in March 2019)* Audit & Supervisory Committee Member from Mar. 2017
Appointed Audit & Supervisory Committee Member of Building Research Institute,
National Research and Development Agency, Ministry of Land, Infrastructure, Transport and Tourism (Current)
Appointed Audit & Supervisory Committee Member of Japan Federation of Bar Associations (resigned in March 2021)
Appointed Audit & Supervisory Board Member of SOHGO SECURITY SERVICES CO., LTD. (Current)
Appointed Vice Chairperson of Finance Committee, Japan Federation of Bar Associations (resigned in March 2022)(Major concurrent positions)2008.1 Appointed Partner at The Tokyo-Marunouchi Law Offices (Current)
2019.6 Appointed Outside Director of SB Players Corp. (Current)
2020.6 Appointed Outside Audit & Supervisory Board Member of Sojitz Corporation (Current)

Director (Executive Vice President)

Director (Senior Executive Officer)

Director (outside)

Audit & Supervisory Board Members (outside)

Motohisa Suzuki

Yutaka Komatsu

Kenji Iwasaki

Yoshiaki Nakagawa

In charge of General Affairs/PR, Compliance, Risk Management,
Information Asset Management, Quaity Management,
Affiliated Corporate, International Affairs
Chief Officer of International Affairs Division,
Deputy Chief Officer of Business Promotion Division

Stationed in the Kansai Region
In charge of West Japan Area, In charge of Expo 2025 Osaka, Kansai, Japan (General)
Deputy Chief Officer of Business Promotion Division, in charge of West Japan Area
Business, Chief Officer of Regional Division (II)2015.1 Appointed Director of Traffic Bureau, National Police Agency (resigned in January 2016)2016.4 Appointed Senior Executive Officer of the Company, in charge of General Affairs/PR and Procurement,
Deputy Chief Officer of Security Operations (in charge of operational affairs, Tokyo 2020 Olympic and Paralympic Games)
In charge of HOME ALSOK, Compliance, Risk Management, and Information Asset Management,
Deputy Chief Officer of Business Promotion Division
2018.4 In Charge of Security Operation Affairs, in charge of Structural Reform of Transportation Security Services,
Deputy Chief Officer of Tokyo 2020 Olympic and Paralympic Games Promotion Affairs
2019.4 Chief Officer of Tokyo 2020 Olympic and Paralympic Games Promotion Affairs
2019.6 Appointed Director and Senior Executive Officer
2022.6 In charge of General Affairs/PR (Current), Compliance (Current), Risk Management (Current), Information AssetManagement (Current), Management Company, International Affairs (Current), Chief Officer of International Affairs
Division (Current)
2022.8 Deputy Chief Officer of Business Promotion Division (Current)
2023.4 Appointed Director and Executive Vice President (Current), in charge of Quality Management (Current),
in charge of Affiliated Corporate (Current)

Executive
Officer46

1981.3 Joined the Company
2008.4 General Manager of Corporate Sales Division 1
2014.10 Transferred and appointed President and Representative Director of Hokkaido Sohgo Security
Services Co., Ltd. (currently ALSOK Hokkaido Co., Ltd.)
2020.4 Appointed Executive Officer, appointed President and Representative Director of ALSOK Hokkaido
Co., Ltd.
2022.4 Appointed Senior Executive Officer, appointed Chairperson and Representative Director of
ALSOK Hokkaido Co., Ltd.
2022.6 Appointed Director and Senior Executive Officer (Current)
In charge of West Japan Area (Current) In charge of Expo 2025 Osaka, Kansai, Japan (General) (Current)
Deputy Chief Officer of Business Promotion Division (Current), in charge of West Japan Area
Business (Current), Chief Officer of Regional Division (II) (Current)
Appointed Chairperson, President, and Representative Director of ALSOK KINKI Co., Ltd.
Appointed Chairperson and Representative Director of ALSOK OSAKA Co., Ltd.

2009.6
2010.62014.42017.42017.62018.62022.62022.7

Appointed Executive Officer of Tokio Marine & Nichido Fire Insurance Co., Ltd.
Appointed Managing Director of Tokio Marine & Nichido Fire Insurance Co., Ltd.
Appointed Executive Director of Tokio Marine & Nichido Fire Insurance Co., Ltd.
Appointed Vice President and Representative Director of Tokio Marine & Nichido Fire
Insurance Co., Ltd. (resigned in March 2018), Appointed the position of Senior Executive Vice President of
Tokio Marine Holdings, Inc.
Appointed Vice President and Representative Director of Tokio Marine Holdings, Inc. (resigned in June 2018)
Appointed Executive Director of General Insurance Association of Japan (resigned in June 2022)
Appointed Director of SOHGO SECURITY SERVICES CO., LTD. (Current)
Audit & Supervisory Board Member of Daiichi Seiwa Jimusho Co., Ltd. (Current)(Major concurrent positions)1990.92001.1
2009.42011.62014.42017.42018.42020.82021.6

Appointed Director and CFO of Matsushita Radio Singapore Pte. Ltd. (resigned in May 1996)
Appointed Chief Accountant of China Hualu Matsushita AVC Co., LTD. (resigned in January 2004)
Appointed Executive Officer of Panasonic Corporation (currently Panasonic Holdings Co., Ltd.)
Appointed Managing Director of Panasonic Corporation (currently Panasonic Holdings Co., Ltd.)
Appointed President and Representative Director of SANYO Electric Co., Ltd. (resigned in March 2017)
Appointed Advisor of Panasonic Corporation (currently Panasonic Holdings Co., Ltd.) (resigned in March 2018)
Appointed Special Advisor of Hardlock Industry Co., Ltd. (Current)
Appointed Advisor of Uokuni Sohonsha Co.,Ltd. (Current)
Appointed Audit & Supervisory Board Member of SOHGO SECURITY SERVICES CO., LTD. (Current)(Major concurrent positions)2020.6 Appointed Outside Auditor of ASANUMA CORPORATION (Current)

2022.6 Appointed President and Representative Director of HMS Holdings Co., Ltd. (Current)
2023.6 Appointed Director and Audit & Supervisory Committee member ofJapan Airport Terminal Co., Ltd. (Expected)

Shinichiro Hayashi

Seiji Ono

Hiroyuki Ono

Yutaka Miyajima Hiroyoshi Yoshida

Ken Takahashi

Tetsuya Tsuburaya

Masahiro Kikukawa Wataru Saito

Kengo Takeda

Masayuki Chikaoka Kenichi Kakimoto

Senior Executive Officer

Senior Executive Officer

Senior Executive Officer

Senior Executive Officer

Senior Executive Officer

Senior Executive Officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer

In charge of Corporate
Planning & Administration,
Business Strategies
Deputy Chief Officer ofBusiness Promotion Division
In charge of Financial Affairs

Deputy Chief Officer ofBusiness Promotion Division
In charge of Corporate
Customers

In charge of Central Japan Area
Deputy Chief Officer ofBusiness Promotion Division
In charge of Central Japan
Area Sales
Chief Officer of Regional Division (III)In charge of Electronic Security,
HOME ALSOKIn charge of Stationed Security
In charge of Expo 2025 Osaka,
Kansai Japan (Public Relations)

In charge of Transportation
Security
In charge of Facility
Management

Second in chargeof General Affairs
General Manager
of General Affairs
Department

Second in charge ofBusiness Strategies
General Manager ofBusiness Strategies
Department

Second in chargeof R&D Engineering
Affairs

In charge ofBusiness Planning &Management

Second in charge ofCorporate Customers
General Manager ofCorporate Sales
Division 1

Chief Officer ofRegional Division (I)Executive Officer
Chief Officer ofRegional Division(IV)

Satoshi Yoneda Tomoyuki Arita

Executive Officer
Chief Officer ofRegional Division(V)

Yoshio Kumazaki
Executive Officer
In charge of Stationed
Security (Tokyo)
President andrepresentative Directorof ALSOK Tokyo
Co., Ltd.

ALSOK REPORT 2023

47

Financial Information

Financial Review

Review of Fiscal 2023
The ALSOK Group has continued to provide appropriate
services as an operator of service businesses concerning thesafety and security of society (the Security Services business,
General Property Management and Fire Protection Services
business, and the Lifestyle Support Services businessincluding Long-term Care Services), which are indispensablefor ensuring the stability of the lives of the people and thenational economy. As stated in “Grand Design 2025,” ourmedium-term management plan, we aim to become a“resilient integrated safety and security solutions provider that
supports the safety and security of our customers andsociety.” To meet the expanding safety and security needs ofour customers and society amid diversifying risks, we areworking to provide new services that combine a variety ofservice functions, including security, facilities, and longterm care.
Net sales for fiscal 2023 increased 0.6% year-on-year to492,226 million yen, marking the 13th consecutive year ofincrease and reaching a record high for the 12th consecutive
year, but this was not sufficient to cover the increase insystem-related expenses and other factors, resulting inoperating income of 36,993 million yen (down 13.7%),
ordinary income of 39,230 million yen (down 12.4%), andprofit attributable to owners of parent of ¥23,950 million(down 17.3%). In addition, we place importance on ordinary
income margin and ROE as objective indicators to determine
the status of achievement of management targets. The“Grand Design 2025” medium-term management plan
outlined a goal of 10.0% or more for both of these indicators,
and we recorded an 8.0% ratio of ordinary income to net
sales and ROE of 7.8% for FY2023.

Net Sales492.2 billion 0.6
YOY

In addition to strengthening its Security Services businessthrough M&A and other means, the ALSOK Group is expanding its General Property Management and Fire Protection
Services business, which is highly compatible with the
Security Services business, and its Long-Term Care Services
such as nursing care, to focus on precisely meeting the
expanding safety and security needs of our customers andsociety amid diversifying risks.

Financial Position
Total assets at the end of FY2023 amounted to 516,647
million yen (up 5.8% from the end of the same period lastyear), of which current assets amounted to 239,032 million
yen (up 2.2%) and fixed assets amounted to 277,615 million
yen (up 9.1%). Total liabilities amounted to 172,753 million
yen (up 7.5%), of which current liabilities amounted to98,856 million yen (up 9.4%) and long-term liabilities amounted to 73,897 million yen (up 5.0%).
Net assets totaled 343,893 million yen (up 5.0%).

Under the Grand Design 2025 Medium-Term Management
Plan, we are aiming for an ROE of 10% or more as a
medium-term financial target. In order to improve ROE, ourbasic policy is to maintain stable dividends with a dividend
payout ratio of 30% and increase profitability with amedium-term target of raising the ratio of consolidated
ordinary profit to net sales to 10% or more. Against thisbackdrop, the ALSOK Group’s equity ratio has been stable atthe end of the last five years, and we believe that this is the

The Group made capital investments totaling 16,448 million
yen in property, plant and equipment and intangible assets for
FY2023. This mainly comprised 7,639 million yen forelectronic security, 997 million yen for equipment and fixtures,and 1,202 million yen for software.
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 2023, R&D expenses
totaled 603 million yen, mainly concerning the Security
Services business. In addition, the R&D department of theCompany 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 concerning these activities is 1,956 million yen.
ALSOK conducts research to respond to the growing needfor safety and security in a society where risks are becoming
increasingly diverse, including “diversification of familiar crimes
and deterioration in perceived public safety,” “increasingly
sophisticated cyber attacks,” and “labor shortages due to theOrdinary Income

Capital Investments

Basic Policy on Financial Discipline

39.2 billion 12.4

492.2

(billions of yen)
500

(billions of yen)60

billion400

16.4 billion 1.0% increase(billions of yen)

39.2

billion16.4

4 increase

¥

100

86

billion

yen

80

15

300

60
30

10

200

40
15

1 00
0

5

0

2019

48

86 yen

YOY

(yen)

20

45

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 business performance.
ALSOK’s basic policy is to pay dividends from surplus twicea year, an interim dividend and a year-end dividend. The
decision-making body for these dividends is the General
Meeting of Shareholders for the year-end dividend and theBoard of Directors for the interim dividend.
The dividend for FY2023, combined with the interim
dividend (43.00 yen per share), was be 86.00 yen per shareper 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 36.4%.

Dividend Per Share
YOY% decrease

falling birthrate and aging population.” In addition, we will
promote open innovation, promote industry-academiagovernment collaboration on cutting-edge technologies,
and respond to ever-changing social conditions.

Shareholder Return Policy
Policy on Growth Investments(Capital Investments/Research andDevelopment)

YOY% increase

result of our efforts to maintain financial discipline while giving
due consideration to both shareholders and creditors in abalanced manner. The main source of our own capital is thecollection of monthly fees from customers mainly in the
security services business, making it a stable source ofmonthly income with a predictable future forecast.

2020

2021

2022

2023

(FY)

2019

2020

2021

2022

2023

(FY)

0

20

2019

2020

2021

2022

2023

(FY)

0

2019

2020

2021

2022

2023

(FY)

ALSOK REPORT 2023

49

Financial Information

Financial Review

Review of Fiscal 2023
The ALSOK Group has continued to provide appropriate
services as an operator of service businesses concerning thesafety and security of society (the Security Services business,
General Property Management and Fire Protection Services
business, and the Lifestyle Support Services businessincluding Long-term Care Services), which are indispensablefor ensuring the stability of the lives of the people and thenational economy. As stated in “Grand Design 2025,” ourmedium-term management plan, we aim to become a“resilient integrated safety and security solutions provider that
supports the safety and security of our customers andsociety.” To meet the expanding safety and security needs ofour customers and society amid diversifying risks, we areworking to provide new services that combine a variety ofservice functions, including security, facilities, and longterm care.
Net sales for fiscal 2023 increased 0.6% year-on-year to492,226 million yen, marking the 13th consecutive year ofincrease and reaching a record high for the 12th consecutive
year, but this was not sufficient to cover the increase insystem-related expenses and other factors, resulting inoperating income of 36,993 million yen (down 13.7%),
ordinary income of 39,230 million yen (down 12.4%), andprofit attributable to owners of parent of ¥23,950 million(down 17.3%). In addition, we place importance on ordinary
income margin and ROE as objective indicators to determine
the status of achievement of management targets. The“Grand Design 2025” medium-term management plan
outlined a goal of 10.0% or more for both of these indicators,
and we recorded an 8.0% ratio of ordinary income to net
sales and ROE of 7.8% for FY2023.

Net Sales492.2 billion 0.6
YOY

In addition to strengthening its Security Services businessthrough M&A and other means, the ALSOK Group is expanding its General Property Management and Fire Protection
Services business, which is highly compatible with the
Security Services business, and its Long-Term Care Services
such as nursing care, to focus on precisely meeting the
expanding safety and security needs of our customers andsociety amid diversifying risks.

Financial Position
Total assets at the end of FY2023 amounted to 516,647
million yen (up 5.8% from the end of the same period lastyear), of which current assets amounted to 239,032 million
yen (up 2.2%) and fixed assets amounted to 277,615 million
yen (up 9.1%). Total liabilities amounted to 172,753 million
yen (up 7.5%), of which current liabilities amounted to98,856 million yen (up 9.4%) and long-term liabilities amounted to 73,897 million yen (up 5.0%).
Net assets totaled 343,893 million yen (up 5.0%).

Under the Grand Design 2025 Medium-Term Management
Plan, we are aiming for an ROE of 10% or more as a
medium-term financial target. In order to improve ROE, ourbasic policy is to maintain stable dividends with a dividend
payout ratio of 30% and increase profitability with amedium-term target of raising the ratio of consolidated
ordinary profit to net sales to 10% or more. Against thisbackdrop, the ALSOK Group’s equity ratio has been stable atthe end of the last five years, and we believe that this is the

The Group made capital investments totaling 16,448 million
yen in property, plant and equipment and intangible assets for
FY2023. This mainly comprised 7,639 million yen forelectronic security, 997 million yen for equipment and fixtures,and 1,202 million yen for software.
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 2023, R&D expenses
totaled 603 million yen, mainly concerning the Security
Services business. In addition, the R&D department of theCompany 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 concerning these activities is 1,956 million yen.
ALSOK conducts research to respond to the growing needfor safety and security in a society where risks are becoming
increasingly diverse, including “diversification of familiar crimes
and deterioration in perceived public safety,” “increasingly
sophisticated cyber attacks,” and “labor shortages due to theOrdinary Income

Capital Investments

Basic Policy on Financial Discipline

39.2 billion 12.4

492.2

(billions of yen)
500

(billions of yen)60

billion400

16.4 billion 1.0% increase(billions of yen)

39.2

billion16.4

4 increase

¥

100

86

billion

yen

80

15

300

60
30

10

200

40
15

1 00
0

5

0

2019

48

86 yen

YOY

(yen)

20

45

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 business performance.
ALSOK’s basic policy is to pay dividends from surplus twicea year, an interim dividend and a year-end dividend. The
decision-making body for these dividends is the General
Meeting of Shareholders for the year-end dividend and theBoard of Directors for the interim dividend.
The dividend for FY2023, combined with the interim
dividend (43.00 yen per share), was be 86.00 yen per shareper 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 36.4%.

Dividend Per Share
YOY% decrease

falling birthrate and aging population.” In addition, we will
promote open innovation, promote industry-academiagovernment collaboration on cutting-edge technologies,
and respond to ever-changing social conditions.

Shareholder Return Policy
Policy on Growth Investments(Capital Investments/Research andDevelopment)

YOY% increase

result of our efforts to maintain financial discipline while giving
due consideration to both shareholders and creditors in abalanced manner. The main source of our own capital is thecollection of monthly fees from customers mainly in the
security services business, making it a stable source ofmonthly income with a predictable future forecast.

2020

2021

2022

2023

(FY)

2019

2020

2021

2022

2023

(FY)

0

20

2019

2020

2021

2022

2023

(FY)

0

2019

2020

2021

2022

2023

(FY)

ALSOK REPORT 2023

49

Financial Information

Management Indexes
2013

2014

2015

2016

2017

2018

2019

2020

2021

Profit and loss (millions of yen)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Ordinary income
Profit attributable to owners of parent

315,564
242,410
73,15361,363
11,79014,741
8,574

328,209248,900
79,30860,37518,932
20,745
10,955

365,749
276,116
89,632
66,66022,971
24,70013,534

381,818
282,880
98,937
69,901
29,03630,667
17,868413,343
310,704
102,639
74,21728,42230,30918,330435,982
330,493
105,489
75,37830,111
31,913
19,344

443,535
334,197
109,338
77,05732,28033,881
22,269460,118
345,097
115,020
78,22436,79538,88024,163469,920352,811
117,108
79,92637,182
39,21225,014

489,092
363,511
125,581
82,71542,86544,79628,964492,226
370,998
121,228
84,23436,99339,23023,950Financial position (millions of yen)
Total assets
Net assets

296,665
175,563

342,495
180,205

373,863
204,363349,561
205,622385,877
222,230

396,635
241,382

410,113257,098

428,796
270,432

481,465
304,427

488,278
327,509516,647
343,893

Cash flow status (millions of yen)
Operating cash flows
Investment cash flows
Financial cash flows

20,890(12,713)(8,136)

21,056(16,701)(9,142)

19,666(24,295)
6,596

19,678(12,808)(9,176)54,561(22,055)(20,582)

25,496(19,125)(13,429)

28,771(14,911)(10,934)

33,896(13,395)(15,113)55,522(38,452)(12,714)42,736(14,093)(18,183)

31,682(24,818)(19,380)

Profitability
Gross profit margin (%)
Operating income margin (%)
Ordinary income margin (%)
Return on assets (ROA) (%)
Return on equity (ROE) (%)
EV/EBITDA (times)*1

23.2
3.7
4.7
5.1
5.7
5.0

24.2
5.8
6.3
6.5
7.0
8.3

24.5
6.3
6.8
6.9
7.8
12.5

25.9
7.6
8.0
8.5
9.9
14.7

24.8
6.9
7.3
8.2
9.7
9.6

24.2
6.9
7.3
8.2
9.3
11.5

24.7
7.3
7.6
8.4
9.9
9.6

25.0
8.0
8.5
9.3
10.1
9.7

24.9
7.9
8.3
8.6
9.6
9.4

25.7
8.8
9.2
9.2
10.0
5.8

24.6
7.5
8.0
7.8
7.8
5.7

Stability
Equity capital ratio (%)
Equity ratio on a market value basis (%)
Interest-bearing liabilities (millions of yen)Interest coverage ratio (times)

52.1
46.5
29,828
36.9

46.2
63.5
63,651
36.4

48.4
110.1
65,091
28.5

51.9
175.4
35,782
30.1

51.0
108.2
42,078
54.2

55.0
134.3
26,153
25.8

56.8
119.0
21,546
18.1

57.3
124.2
23,578
26.2

57.6
110.0
28,408
27.3

61.5
82.9
13,423
22.3

60.9
69.9
10,825
17.6

Efficiency
Total asset turnover ratio (times)
Shareholders’ equity turnover ratio (times)
Tangible fixed assets turnover ratio (times)

1.1
2.1
5.4

1.0
2.1
5.2

1.0
2.1
5.4

1.1
2.1
5.3

1.1
2.2
5.1

1.1
2.1
4.9

1.1
2.0
5.0

1.1
1.9
5.2

1.0
1.8
4.9

1.0
1.7
4.9

1.0
1.6
4.6

1,536.30
85.30
0.9
16.1
25
29.3
1,373

1,574.74
108.99
1.4
19.9
30
27.5
2,164

1,800.15
134.65
2.3
30.4
38
28.2
4,095

1,805.09
177.77
3.4
34.3
50
28.1
6,100

1,956.25
182.37
2.1
22.8
55
30.2
4,155

2,155.74
191.93
2.4
27.5
60
31.3
5,260

2,302.38
219.98
2.1
21.9
66
30.0
4,820

2,425.02
238.69
2.2
22.0
70
29.3
5,260

2,741.27
247.09
1.9
21.2
72
29.1
5,230

2,964.85
286.11
1.3
14.0
82
28.7
4,000

3,110.52
236.58
1.1
15.1
86
36.4
3,565

28,05413.8

28,091
14.4

31,22114.9

31,446
15.4

36,69315.9

37,51916.4

37,41716.8

37,90217.2

38,44417.4

38,192
17.6

39,039
17.8

97.6

92.4

96.6

93.7

91.3

98.3

98.1

98.2

98.1

95.2

98.7

−
−

102,3130.312

96,9620.265

92,4530.242

90,6220.219

89,7350.206

84,6550.191

81,2860.177

85,5010.181

85,1460.174

86,8500.176

Fiscal year ended March 31

Per share information
Net assets Per share (yen)Profit attributable to owners of parent per share (EPS) (yen)Price book-value ratio (PBR) (times)
Price earnings ratio (PER) (times)
Dividends per share (yen)Consolidated dividend payout ratio (%)
Closing stock price
Other 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 (Group) (t-CO2)*2
CO2 emissions per sales unit (Group) (t-CO2)*• ALSOK Souei Co., Ltd.

• Nippon Building Maintenance Co., Ltd.

M&A Activities(currently ALSOK FACILITIES CO., LTD.)• ANTEI CO., LTD. (currently ALSOK CARE CO., LTD.)• HCM Corporation (currently ALSOK CARE CO., LTD.)• ALSOK Care & Support Co., Ltd.

• Wisnet Co., Ltd.

• ALSOK-TW East Japan• ALSOK Myanmar Security • Keihanshin Security(currently ALSOK CARE
Co., Ltd.
Services Co.,Ltd.
Services Co., Ltd.
• ALSOK KANTO DELIVERY • Care Plus Co., Ltd.
CO., LTD.)• PT. ALSOK BASS•
SOHGO KANZAI Co., Ltd.
CO., LTD.
• Health Support Co., Ltd.
Indonesia Security Services• ALSOK Vietnam Security(currently SOHGO KANZAI
Services Joint Stock Company
Co., Ltd.)• ALSOK SHOJITSU SECURITYSERVICE CO., LTD.

• Life Holdings Co., Ltd.

2023

2022

• ALSOK Joy Life Co., Ltd.
• ALSOK Life Support

Co., Ltd.

• ALSOK Bangladesh

Security Services Ltd.

*1 Method of calculation for EV/EBITDA is as follows: EV = Market capitalization + Interest-bearing liabilities – Short-term liquidity (Cash and deposits + Short-term investments in securities)
EBITA = Earnings before interest, tax, depreciation, and amortization) = Operating income + Depreciation and amortization. The method calculation for EV/EBITDA has been changed since the fiscal year ended March 31, 2023.
*2 The method and scope of CO2 emissions calculation have been changed since the fiscal year ended March 31, 2021.
* 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

ALSOK REPORT 2023

51

Financial Information

Management Indexes
2013

2014

2015

2016

2017

2018

2019

2020

2021

Profit and loss (millions of yen)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Ordinary income
Profit attributable to owners of parent

315,564
242,410
73,15361,363
11,79014,741
8,574

328,209248,900
79,30860,37518,932
20,745
10,955

365,749
276,116
89,632
66,66022,971
24,70013,534

381,818
282,880
98,937
69,901
29,03630,667
17,868413,343
310,704
102,639
74,21728,42230,30918,330435,982
330,493
105,489
75,37830,111
31,913
19,344

443,535
334,197
109,338
77,05732,28033,881
22,269460,118
345,097
115,020
78,22436,79538,88024,163469,920352,811
117,108
79,92637,182
39,21225,014

489,092
363,511
125,581
82,71542,86544,79628,964492,226
370,998
121,228
84,23436,99339,23023,950Financial position (millions of yen)
Total assets
Net assets

296,665
175,563

342,495
180,205

373,863
204,363349,561
205,622385,877
222,230

396,635
241,382

410,113257,098

428,796
270,432

481,465
304,427

488,278
327,509516,647
343,893

Cash flow status (millions of yen)
Operating cash flows
Investment cash flows
Financial cash flows

20,890(12,713)(8,136)

21,056(16,701)(9,142)

19,666(24,295)
6,596

19,678(12,808)(9,176)54,561(22,055)(20,582)

25,496(19,125)(13,429)

28,771(14,911)(10,934)

33,896(13,395)(15,113)55,522(38,452)(12,714)42,736(14,093)(18,183)

31,682(24,818)(19,380)

Profitability
Gross profit margin (%)
Operating income margin (%)
Ordinary income margin (%)
Return on assets (ROA) (%)
Return on equity (ROE) (%)
EV/EBITDA (times)*1

23.2
3.7
4.7
5.1
5.7
5.0

24.2
5.8
6.3
6.5
7.0
8.3

24.5
6.3
6.8
6.9
7.8
12.5

25.9
7.6
8.0
8.5
9.9
14.7

24.8
6.9
7.3
8.2
9.7
9.6

24.2
6.9
7.3
8.2
9.3
11.5

24.7
7.3
7.6
8.4
9.9
9.6

25.0
8.0
8.5
9.3
10.1
9.7

24.9
7.9
8.3
8.6
9.6
9.4

25.7
8.8
9.2
9.2
10.0
5.8

24.6
7.5
8.0
7.8
7.8
5.7

Stability
Equity capital ratio (%)
Equity ratio on a market value basis (%)
Interest-bearing liabilities (millions of yen)Interest coverage ratio (times)

52.1
46.5
29,828
36.9

46.2
63.5
63,651
36.4

48.4
110.1
65,091
28.5

51.9
175.4
35,782
30.1

51.0
108.2
42,078
54.2

55.0
134.3
26,153
25.8

56.8
119.0
21,546
18.1

57.3
124.2
23,578
26.2

57.6
110.0
28,408
27.3

61.5
82.9
13,423
22.3

60.9
69.9
10,825
17.6

Efficiency
Total asset turnover ratio (times)
Shareholders’ equity turnover ratio (times)
Tangible fixed assets turnover ratio (times)

1.1
2.1
5.4

1.0
2.1
5.2

1.0
2.1
5.4

1.1
2.1
5.3

1.1
2.2
5.1

1.1
2.1
4.9

1.1
2.0
5.0

1.1
1.9
5.2

1.0
1.8
4.9

1.0
1.7
4.9

1.0
1.6
4.6

1,536.30
85.30
0.9
16.1
25
29.3
1,373

1,574.74
108.99
1.4
19.9
30
27.5
2,164

1,800.15
134.65
2.3
30.4
38
28.2
4,095

1,805.09
177.77
3.4
34.3
50
28.1
6,100

1,956.25
182.37
2.1
22.8
55
30.2
4,155

2,155.74
191.93
2.4
27.5
60
31.3
5,260

2,302.38
219.98
2.1
21.9
66
30.0
4,820

2,425.02
238.69
2.2
22.0
70
29.3
5,260

2,741.27
247.09
1.9
21.2
72
29.1
5,230

2,964.85
286.11
1.3
14.0
82
28.7
4,000

3,110.52
236.58
1.1
15.1
86
36.4
3,565

28,05413.8

28,091
14.4

31,22114.9

31,446
15.4

36,69315.9

37,51916.4

37,41716.8

37,90217.2

38,44417.4

38,192
17.6

39,039
17.8

97.6

92.4

96.6

93.7

91.3

98.3

98.1

98.2

98.1

95.2

98.7

−
−

102,3130.312

96,9620.265

92,4530.242

90,6220.219

89,7350.206

84,6550.191

81,2860.177

85,5010.181

85,1460.174

86,8500.176

Fiscal year ended March 31

Per share information
Net assets Per share (yen)Profit attributable to owners of parent per share (EPS) (yen)Price book-value ratio (PBR) (times)
Price earnings ratio (PER) (times)
Dividends per share (yen)Consolidated dividend payout ratio (%)
Closing stock price
Other 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 (Group) (t-CO2)*2
CO2 emissions per sales unit (Group) (t-CO2)*• ALSOK Souei Co., Ltd.

• Nippon Building Maintenance Co., Ltd.

M&A Activities(currently ALSOK FACILITIES CO., LTD.)• ANTEI CO., LTD. (currently ALSOK CARE CO., LTD.)• HCM Corporation (currently ALSOK CARE CO., LTD.)• ALSOK Care & Support Co., Ltd.

• Wisnet Co., Ltd.

• ALSOK-TW East Japan• ALSOK Myanmar Security • Keihanshin Security(currently ALSOK CARE
Co., Ltd.
Services Co.,Ltd.
Services Co., Ltd.
• ALSOK KANTO DELIVERY • Care Plus Co., Ltd.
CO., LTD.)• PT. ALSOK BASS•
SOHGO KANZAI Co., Ltd.
CO., LTD.
• Health Support Co., Ltd.
Indonesia Security Services• ALSOK Vietnam Security(currently SOHGO KANZAI
Services Joint Stock Company
Co., Ltd.)• ALSOK SHOJITSU SECURITYSERVICE CO., LTD.

• Life Holdings Co., Ltd.

2023

2022

• ALSOK Joy Life Co., Ltd.
• ALSOK Life Support

Co., Ltd.

• ALSOK Bangladesh

Security Services Ltd.

*1 Method of calculation for EV/EBITDA is as follows: EV = Market capitalization + Interest-bearing liabilities – Short-term liquidity (Cash and deposits + Short-term investments in securities)
EBITA = Earnings before interest, tax, depreciation, and amortization) = Operating income + Depreciation and amortization. The method calculation for EV/EBITDA has been changed since the fiscal year ended March 31, 2023.
*2 The method and scope of CO2 emissions calculation have been changed since the fiscal year ended March 31, 2021.
* 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

ALSOK REPORT 2023

51

Financial Information

Financial Information

Breakdown of Sales/Number of Contracts

Corporate Information/Stock Information

Net Sales by Service Type(billions of yen)

2014

Fiscal year ended March 31

Security Services
Electronic Security Services 151.8
Stationed Security Services
77.2
Transportation Security Services 51.0
General Property Management
44.8
and Fire Protection Services
1Long-term Care Services*
―
Other
3.2
Total

328.2

2015

2016

2017

2018

2019

2022

2021

2020

167.1
93.9
54.6

170.5
100.4
56.1

174.0
110.0
60.2

175.5
111.9
62.2

175.6
116.9
65.6

176.7
113.1
65.6

176.4
128.8
67.8

175.9
123.7
66.7

58.3

54.9

57.8

61.9

62.9

69.2

68.1

68.1

72.9

―
6.2

7.5
3.5

24.9
3.4

25.7
3.9

26.5
4.2

28.1
4.6

40.3
5.8

41.6
6.0

47.4
5.3

365.7

381.8

413.3

435.9

443.5

460.1

469.9

489.0

492.2

*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 separatelyfrom 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.”(billions of yen)

Fiscal year ended March 31

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Business Corporations
Financial Institutions
Public Institutions
Individual Users*2

196.7
90.5
22.8
18.0

224.9
91.3
26.4
22.9

234.3
92.3
26.2
28.9

244.9
91.7
29.7
46.8

263.6
92.0
31.5
49.0

271.2
91.4
31.2
49.7

282.9
93.2
32.2
51.6

278.2
92.0
35.3
64.1

292.9
88.5
41.4
66.1

299.9
86.3
35.3
70.6

Total

328.2

365.7

381.8

413.3

435.9

443.5

460.1

469.9

489.0

492.2

*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
Security Services
Electronic Security Services

SOHGO SECURITY SERVICES CO., LTD.
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) 39,039(non-consolidated) 12,041
Business Operations Head Office/64 Branches/37 Offices/257 Sales
Offices/79 Consolidated Subsidiaries(including 10 Overseas Subsidiaries)
16 companies accounted for by the Equity Method(including 3 Overseas Subsidiaries)

2015

2016

2017

2018

2019

2022

2021

2020

2023

677,672

803,601

854,083

888,955

922,928

949,858

973,066

990,155

1,009,259

1,029,619

Corporate Clients

440,028

463,053478,925

493,035

508,374

520,942533,733

540,410548,580

556,431

Individual Users

237,644

340,548

375,158

395,920

414,554428,916

439,333

449,745

460,679

473,188

Stationed Security Services

3,227

3,597

3,871

4,213

4,357

4,485

4,468

4,371

4,584

4,658

Transportation Security Services

55,42059,134

62,14665,75572,45475,652

77,791

79,28979,58280,024General Property Management
and Fire Protection Services
Long-term Care Services*3

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

109,697

113,880

119,020

122,471――

12,804

22,62821,23425,364

24,97627,503

27,11827,236

Other

13,72522,477

18,21722,28525,26325,896

29,382

29,693

34,77834,122

Total

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

1,219,380

1,244,891

1,274,341

1,298,130*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 separatelyfrom 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.”Amounts for fiscal years ended March 31, 2015, and prior are included under “Other Services.”

Stock Information
Total Number of Shares Authorized
Number of Shares Issued

Number of Shareholders at the Endof the Preceding Fiscal Period
Stock Listing
Securities CodeMinimum Trading Lot

Evaluations by External Evaluation Organizations

FTSE Blossom Japan Sector
Relative Index

S&P/JPX
Carbon Efficient Index

Joined Initiatives

13,384
Tokyo Stock Exchange(Prime Market)
2331
100 shares

Securities Companies
1.9%
Financial institutions
35.4%

Individuals
and Other
18.4%
Foreign Investors
19.9%

Domestic Corporations
23.4%

Major Shareholders (top 10)
Number of Shares Held(thousand shares)

Name

Controlling Share(%)

12,640Japan Master Trust Bank, Ltd. (Trust account)
7,411
Custody Bank of Japan, Ltd. (Trust account)
7,388
SOHGO CORPORATION
5,283
Saitama Machinery Co., Ltd.
4,150
Kamakura Corporation
3,541
Employees Shareholding Association
Custody Bank of Japan, Ltd. (as trustee for Mizuho
Bank Ltd. Retirement Benefit Trust Accountre-entrusted by Mizuho Trust and Banking Co., Ltd.) 2,961
2,950
Kizuna Corporation
2,885
Atsushi Murai
SMBC Trust Bank Ltd. (as trustee for retirement
2,735
benefit of Sumitomo Mitsui Banking Corporation)

12.48
7.31
7.29
5.21
4.09
3.49

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 (782,410 shares).
Activity

ALSOK values engaging in active dialogue with all
stakeholders in order to achieve sustainable growth andenhance corporate value over the medium to long term.
Any comments raised are fed back to the
management team every quarter with the view toenhancing corporate value.

Performance

Covered by

Financial Results Briefing for
Analysts and Institutional Investors

2 times

Representative Director, Group CEO, Representative Director, Group COO, Director in chargeof Corporate Planning & Administration, Director in charge of Financial & Accounting

Conference Organized by
Securities Companies

1 time(2 companies)

Representative Director, Group COO

Small Meeting Organizedby ALSOK

1 times

Representative Director, Group COO

175 times

Second in Charge of Corporate Planning &Administration, General Manager of IR Office

Individual Meetings for
Institutional Investors* Period: April 2022 to March 2023

Management
Philosophy

Based on two core principles exemplified by “arigato no kokoro”*1 (a feeling ofgratefulness and gratitude) and “bushi no seishin”*2 (a samurai spirit), we devote
ourselves to protecting the safety and security of our customers and of society as a whole.

Management
Guidelines

1. Fundamental Spirit

ESG Investment Indices

FTSE Blossom Japan Index

300,000,000 shares
102,040,042 shares(including 782,410 sharesof treasury stock)

Results of IR Activities*

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

FTSE4Good Index Series

Treasury Stock
0.7%

Corporate Name
Head Office(contracts)

2014

Fiscal year ended March 31

Distribution of Shares by Shareholder Type

2023

160.4
88.4
52.3

Net Sales by Client Type

Corporate Information(as of March 31, 2023)

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
motivation in our employees and living up to shareholder expectations through attractive profit growth.

3. Basic Strategy

While security services remain at the heart of our business, as our basic strategy, we also seek to offer adiverse range of products and services in new fields to satisfy the needs of the everchanging times.

4. Contributing to Society
Health Management Brand 2023

UN Global Compact

TCFD(Task Force on Climate-related Financial Disclosure)

CDP

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

• 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*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.

ALSOK REPORT 2023

53

Financial Information

Financial Information

Breakdown of Sales/Number of Contracts

Corporate Information/Stock Information

Net Sales by Service Type(billions of yen)

2014

Fiscal year ended March 31

Security Services
Electronic Security Services 151.8
Stationed Security Services
77.2
Transportation Security Services 51.0
General Property Management
44.8
and Fire Protection Services
1Long-term Care Services*
―
Other
3.2
Total

328.2

2015

2016

2017

2018

2019

2022

2021

2020

167.1
93.9
54.6

170.5
100.4
56.1

174.0
110.0
60.2

175.5
111.9
62.2

175.6
116.9
65.6

176.7
113.1
65.6

176.4
128.8
67.8

175.9
123.7
66.7

58.3

54.9

57.8

61.9

62.9

69.2

68.1

68.1

72.9

―
6.2

7.5
3.5

24.9
3.4

25.7
3.9

26.5
4.2

28.1
4.6

40.3
5.8

41.6
6.0

47.4
5.3

365.7

381.8

413.3

435.9

443.5

460.1

469.9

489.0

492.2

*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 separatelyfrom 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.”(billions of yen)

Fiscal year ended March 31

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Business Corporations
Financial Institutions
Public Institutions
Individual Users*2

196.7
90.5
22.8
18.0

224.9
91.3
26.4
22.9

234.3
92.3
26.2
28.9

244.9
91.7
29.7
46.8

263.6
92.0
31.5
49.0

271.2
91.4
31.2
49.7

282.9
93.2
32.2
51.6

278.2
92.0
35.3
64.1

292.9
88.5
41.4
66.1

299.9
86.3
35.3
70.6

Total

328.2

365.7

381.8

413.3

435.9

443.5

460.1

469.9

489.0

492.2

*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
Security Services
Electronic Security Services

SOHGO SECURITY SERVICES CO., LTD.
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) 39,039(non-consolidated) 12,041
Business Operations Head Office/64 Branches/37 Offices/257 Sales
Offices/79 Consolidated Subsidiaries(including 10 Overseas Subsidiaries)
16 companies accounted for by the Equity Method(including 3 Overseas Subsidiaries)

2015

2016

2017

2018

2019

2022

2021

2020

2023

677,672

803,601

854,083

888,955

922,928

949,858

973,066

990,155

1,009,259

1,029,619

Corporate Clients

440,028

463,053478,925

493,035

508,374

520,942533,733

540,410548,580

556,431

Individual Users

237,644

340,548

375,158

395,920

414,554428,916

439,333

449,745

460,679

473,188

Stationed Security Services

3,227

3,597

3,871

4,213

4,357

4,485

4,468

4,371

4,584

4,658

Transportation Security Services

55,42059,134

62,14665,75572,45475,652

77,791

79,28979,58280,024General Property Management
and Fire Protection Services
Long-term Care Services*3

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

109,697

113,880

119,020

122,471――

12,804

22,62821,23425,364

24,97627,503

27,11827,236

Other

13,72522,477

18,21722,28525,26325,896

29,382

29,693

34,77834,122

Total

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

1,219,380

1,244,891

1,274,341

1,298,130*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 separatelyfrom 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.”Amounts for fiscal years ended March 31, 2015, and prior are included under “Other Services.”

Stock Information
Total Number of Shares Authorized
Number of Shares Issued

Number of Shareholders at the Endof the Preceding Fiscal Period
Stock Listing
Securities CodeMinimum Trading Lot

Evaluations by External Evaluation Organizations

FTSE Blossom Japan Sector
Relative Index

S&P/JPX
Carbon Efficient Index

Joined Initiatives

13,384
Tokyo Stock Exchange(Prime Market)
2331
100 shares

Securities Companies
1.9%
Financial institutions
35.4%

Individuals
and Other
18.4%
Foreign Investors
19.9%

Domestic Corporations
23.4%

Major Shareholders (top 10)
Number of Shares Held(thousand shares)

Name

Controlling Share(%)

12,640Japan Master Trust Bank, Ltd. (Trust account)
7,411
Custody Bank of Japan, Ltd. (Trust account)
7,388
SOHGO CORPORATION
5,283
Saitama Machinery Co., Ltd.
4,150
Kamakura Corporation
3,541
Employees Shareholding Association
Custody Bank of Japan, Ltd. (as trustee for Mizuho
Bank Ltd. Retirement Benefit Trust Accountre-entrusted by Mizuho Trust and Banking Co., Ltd.) 2,961
2,950
Kizuna Corporation
2,885
Atsushi Murai
SMBC Trust Bank Ltd. (as trustee for retirement
2,735
benefit of Sumitomo Mitsui Banking Corporation)

12.48
7.31
7.29
5.21
4.09
3.49

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 (782,410 shares).
Activity

ALSOK values engaging in active dialogue with all
stakeholders in order to achieve sustainable growth andenhance corporate value over the medium to long term.
Any comments raised are fed back to the
management team every quarter with the view toenhancing corporate value.

Performance

Covered by

Financial Results Briefing for
Analysts and Institutional Investors

2 times

Representative Director, Group CEO, Representative Director, Group COO, Director in chargeof Corporate Planning & Administration, Director in charge of Financial & Accounting

Conference Organized by
Securities Companies

1 time(2 companies)

Representative Director, Group COO

Small Meeting Organizedby ALSOK

1 times

Representative Director, Group COO

175 times

Second in Charge of Corporate Planning &Administration, General Manager of IR Office

Individual Meetings for
Institutional Investors* Period: April 2022 to March 2023

Management
Philosophy

Based on two core principles exemplified by “arigato no kokoro”*1 (a feeling ofgratefulness and gratitude) and “bushi no seishin”*2 (a samurai spirit), we devote
ourselves to protecting the safety and security of our customers and of society as a whole.

Management
Guidelines

1. Fundamental Spirit

ESG Investment Indices

FTSE Blossom Japan Index

300,000,000 shares
102,040,042 shares(including 782,410 sharesof treasury stock)

Results of IR Activities*

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

FTSE4Good Index Series

Treasury Stock
0.7%

Corporate Name
Head Office(contracts)

2014

Fiscal year ended March 31

Distribution of Shares by Shareholder Type

2023

160.4
88.4
52.3

Net Sales by Client Type

Corporate Information(as of March 31, 2023)

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
motivation in our employees and living up to shareholder expectations through attractive profit growth.

3. Basic Strategy

While security services remain at the heart of our business, as our basic strategy, we also seek to offer adiverse range of products and services in new fields to satisfy the needs of the everchanging times.

4. Contributing to Society
Health Management Brand 2023

UN Global Compact

TCFD(Task Force on Climate-related Financial Disclosure)

CDP

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

• 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*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.

ALSOK REPORT 2023

53

ALSOKREPORT

2023[Fiscal year ended March 31, 2023]

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

T E L . 03-3423-2331
FAX. 03-3470-1565
T E L . 03-3470-1972
FAX. 03-5411-1636

CSR and Social Contribution Activities
For more information on the activities we are implementing through our core business inline with ISO 26000, please visit our website.

https://www.alsok.co.jp/en/csr/
・ALSOK ANSHIN KYOSHITSU, REBORG, HOME ALSOK MIMAMORI SUPPORT, HOME ALSOK Connect areregistered trademarks of SOHGO SECURITY SERVICES CO., LTD.

2,109kg-CO2 emitted in preparing this report was carbon offset by offset credits certified by the Ministry of the Environment.

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