Recurring revenue from facility security services and expansion of railway-related projects

「In addition to the continuing effects of M&A, including the sharing of customer bases, the results reflected contract price revisions, an expansion in scale driven by an increase in the number of contracts and solid recruitment activity, as well as orders for large-scale temporary security operations. Revenue for the 16-month period was ¥15,346 million.」

「The Group operates a broad range of personnel services, including facility security, traffic-control security, event security and bodyguard services, as well as related areas such as temporary staffing and the placement of condominium managers. Results for the interim consolidated accounting period reflected the continuing impact of M&A, revisions to contract fees and expansion in scale from an increase in the number of contracts.」

「The increase in revenue was due mainly to the contribution during the interim consolidated accounting period, compared with the same period of the previous fiscal year, from 東神産業㈱, ㈱セキュリティ and 東邦警備保障㈱, which were acquired in the previous consolidated fiscal year, as well as revisions to on-site contract fees and the commencement of new on-site contracts.」

「The increase in revenue from on-site contracts resulted from the launch of new facility-security services at critical protection facilities, semiconductor plants, e-commerce logistics warehouses, commercial facilities and other sites. It also includes the impact of establishing a new office in Kyoto Prefecture and newly commencing facility-security services at museums and other facilities.」

「The increase in revenue was mainly due to the acquisitions of 合建警備保障㈱ and ㈱ダイトーセキュリティー and an increase in recurring projects resulting from the build-up of facility-security orders for critical protection facilities and other sites, although temporary security services related to COVID-19 declined from the previous fiscal year.」

「The increase in revenue was mainly attributable to the acquisitions of 合建警備保障㈱ and ㈱ダイトーセキュリティー, the build-up of facility-security orders for critical protection facilities and other sites, and an increase in operating personnel resulting from the hiring of 45 new graduates despite challenging recruitment conditions, although temporary security services related to COVID-19 declined from the previous fiscal year.」

「In the fiscal year ended March 2023, facility-security services newly commenced at critical protection facilities, office buildings of major electrical-equipment manufacturers, court buildings, commercial facilities and data centers, among others. In the fiscal year ended March 2024, facility-security services also newly commenced at critical protection facilities, logistics warehouses and other sites.」

「Revenue for the first 3 quarters of the consolidated fiscal year decreased by ¥207 million year on year to ¥5,966 million. The decline was mainly due to the absence of security revenue from the Tokyo 2020 Olympic and Paralympic Games in the previous fiscal year, despite higher revenue from accumulated facility-security orders and a recovery in event-security revenue as the business transitioned to living with COVID-19.」

「During the fiscal year, the Group newly commenced facility-security services under on-site contracts in Tokyo and Niigata prefectures, among others. Temporary-security orders were strong for COVID-19-related services, fireworks festivals, the National Sports Festival and other events. Taking into account factors specific to the previous fiscal year, the Group's business is growing steadily.」

「During the first quarter of the consolidated fiscal year, the Group newly commenced facility-security services at offices of major manufacturers and government facilities.」

「The Company also established new offices in Niigata Prefecture and Hiroshima Prefecture in the fiscal year ending March 2022 and is pursuing sales activities to win on-site security contracts.」

「Against this backdrop, the Group worked to prevent the spread of COVID-19 and conducted business with the safety of employees, customers and business partners as its highest priority. It newly commenced facility-security services for large critical facilities and other recurring projects, provided temporary security services related to measures to prevent the spread of COVID-19, and worked on security for the Tokyo 2020 Olympic and Paralympic Games, resulting in substantial growth in results.」

「Since the start of the fiscal year, the Company has won and newly commenced multiple facility-security contracts, including for large critical facilities. These are long-term facility-security contracts, which the Group considers important to build up.」

「Since the beginning of the fiscal year, the Company has newly commenced multiple facility-security services, including on-site security at large critical facilities, and results in its core long-term facility-security business have remained solid.」

「Even under these circumstances, contracts for long-term, stable facility-security services, which the Company positions as a core business pillar, have increased as shown below, enabling steady accumulation.」

「The Group has also begun the delayed launch of new long-term contract projects and increased staffing for existing long-term contract projects, and expects the impact on full-year results to be limited.」

「The Group has generally maintained its existing security arrangements for its core office-related facility-security business while commencing security services for multiple newly won projects. The overall impact on the Group's facility-security segment is expected to be limited.」

「Revenue in the facility and patrol security segment for the consolidated fiscal year increased by ¥676.753 million, or 17.6%, year on year to ¥4,528.855 million. This increase was mainly due to strong orders for facility security, including newly covered service areas. A relatively large number of facility-security projects began during the third quarter of the fiscal year, and their revenue is expected to contribute throughout the following fiscal year.」

「Against this backdrop, the Group steadily secured long-term contract projects, winning new facility-security orders mainly in the Tokyo metropolitan area and Kansai and expanding the service area of Highway Security.」

「In August, the Group opened the Mito Office and won a facility-security contract for a critical facility. It also won facility-security contracts for school and medical facilities, among others, in response to growing demand arising from heightened security awareness, steadily building up its project base.」

「Against this backdrop, the Group steadily built up projects by commencing new contracts for its core facility-security business,」

「In addition to continuing efforts to expand orders for facility security, the Group focused on expanding rail-related projects, for which demand has been increasing amid heightened safety measures and security awareness.」