Revenue growth, quality improvement and productivity improvement

「Revenue expanded significantly as the company completed large-scale security and cleaning operations during the Osaka-Kansai Expo and price revision negotiations undertaken since the previous fiscal year largely took hold. Revenue was ¥43,071 million, up ¥8,146 million, or 23.3%, year on year. In terms of profit, all profit measures increased significantly, supported by the recognition of Expo-related revenue, the elimination of M&A expenses and upfront investment costs related to the Expo incurred in the previous period, and improvements in the earnings structure following the elimination of unprofitable projects.」

「Orders related to the 2025 Osaka-Kansai Expo, which opened in April 2025, made a major contribution to performance, and each company in the 東洋テック Group performed well. Although many personnel were assigned to Expo-related work, revenue from non-Expo operations also increased from the previous interim consolidated accounting period, supported by steady price revision negotiations and firm event security operations. As a result, revenue was ¥24,546 million, up ¥8,278 million, and operating profit was ¥2,053 million, up ¥1,736 million, exceeding the published operating profit forecast of ¥2,015 million. Ordinary profit was ¥2,103 million, up ¥1,763 million, and interim net income attributable to owners of the parent was ¥1,494 million, up ¥1,411 million.」

「Revenue increased as the security services businesses of 東洋テック and its affiliates remained firm and drove overall performance. However, acquisition costs of ¥170 million were incurred in connection with the M&A of the アムスグループ and 関西ユナイトプロテクション, which is expected to contribute to higher group consolidated performance going forward, resulting in lower profit. Revenue was ¥16,268 million, an increase of ¥956 million from the previous interim consolidated accounting period; operating profit was ¥317 million, down ¥75 million; and ordinary profit was ¥340 million, down ¥87 million.」

「The security services business as a whole remained firm due to continued price increase negotiations and efforts to win new orders. Revenue was ¥23,165 million, up ¥1,523 million, or 7.0%, from the same quarter of the previous year. In terms of profit, although profitability in the building management business was still improving and the closing of a large real estate transaction was postponed, operating profit was ¥659 million, up ¥167 million, or 34.2%, and ordinary profit was ¥715 million, up ¥111 million, or 18.4%. Meanwhile, net income attributable to owners of the parent was ¥377 million, down ¥150 million, or 28.5%, because the previous period included a large gain on the sale of securities.」

「As price increase negotiations continued and 五大テック株式会社, which joined the group in the previous fiscal year, was consolidated for the full year, revenue increased for the 13th consecutive period compared with the cumulative second quarter. Revenue was ¥15,312 million, up ¥1,214 million, or 8.6%, from the same quarter of the previous year. In terms of profit, in addition to the effects of price increases, the integration of 2 cleaning companies in the building management business produced benefits. Operating profit was ¥393 million, up ¥206 million, or 110.7%, and ordinary profit was ¥427 million, up ¥151 million, or 55.0%.」

「The security services business drove overall performance, with price increase negotiations undertaken since the previous fiscal year and 五大テック株式会社 joining the group, becoming a consolidated subsidiary from the end of the first quarter of the previous fiscal year, making major contributions. Revenue was ¥7,394 million, an increase of ¥789 million from the same quarter of the previous year. In terms of profit, 東洋テックビルサービス株式会社, which integrated 2 cleaning companies in April 2023, experienced some delays related to the integration, but operating profit was ¥142 million, up ¥183 million year on year, ordinary profit was ¥176 million, up ¥130 million, and net income attributable to owners of the parent was ¥79 million, up ¥54 million.」

「Revenue increased ¥789 million, or 5.9%, year on year to ¥14,097 million, as the security services business remained firm and the effects of 五大テック株式会社 joining the group began to be reflected from the second quarter of the current fiscal year. Revenue increased for the 12th consecutive period compared with the cumulative second quarter. In terms of profit, although there were temporary increases in expenses related to the integration of 4 subsidiaries and M&A, the performance of the companies in the building management business also improved. As a result, the company emerged from the temporary operating loss in the first quarter. Operating profit was ¥186 million, down ¥187 million, or 50.1%, from the same quarter of the previous year, ordinary profit was ¥276 million, down ¥135 million, or 32.9%, and net income attributable to owners of the parent was ¥277 million, up ¥62 million, or 29.0%.」

「Revenue increased year on year as a result of higher sales in the security services business, led by mechanical and onsite security, and steady performance in the real estate business. Revenue was ¥6,605 million, an increase of ¥39 million from the same quarter of the previous year. In terms of profit, the increase in the minimum wage, higher one-time expenses, including relocation costs, associated with the integration of 4 subsidiaries, and one-time factors such as M&A fees resulted in an operating loss of ¥40 million, a decline of ¥239 million from the same quarter of the previous year. Ordinary profit was ¥45 million, down ¥219 million, and net income attributable to owners of the parent was ¥24 million, down ¥132 million.」

「Total revenue was ¥27,465 million, an increase of ¥1,464 million, or 5.6%, year on year, marking the 11th consecutive period of revenue growth. In terms of profit, operating profit increased by ¥151 million, or 21.8%, year on year to ¥848 million, and ordinary profit increased by ¥47 million, or 5.6%, to ¥895 million. As noted above, revenue increased, while the building management business benefited from cost control efforts and price increases, and the real estate business benefited from the sale of large properties held for sale.」

「Revenue was ¥20,122 million, up 4.7% year on year, reflecting orders related to COVID-19 vaccination venues and increases in construction and equipment sales. In terms of profit, operating profit was ¥542 million, up 14.1% year on year, ordinary profit was ¥616 million, up 1.0%, and net income attributable to owners of the parent was ¥116 million, down 72.8%.」

「The shortfall in construction and equipment sales and the real estate business was offset by on-site security and building management, resulting in net sales of ¥13,307 million, up 5.0% year on year. On the earnings front, operating profit was ¥373 million, up 36.0% year on year, and ordinary profit was ¥411 million, up 12.9%.」

「The Group won contracts for on-site security services and cleaning and disinfection work at COVID-19 vaccination centers. By leveraging the expertise developed over many years in security services and its know-how in comprehensive building management, the Group demonstrated the collective capabilities of the Toyo Tech Group, resulting in net sales of ¥6,566 million, up 5.6% year on year. Operating profit rose 7.4% to ¥198 million, ordinary profit rose 9.4% to ¥265 million, and net income attributable to owners of the parent rose 18.5% to ¥157 million.」

「Total net sales amounted to ¥26,000 million, up ¥1,158 million, or 4.7%, from the previous fiscal year, marking the 10th consecutive period of revenue growth. On the earnings front, operating profit fell ¥382 million, or 35.4%, to ¥697 million, and ordinary profit fell ¥404 million, or 32.3%, to ¥848 million. Factors included the decline in construction and equipment sales due in part to COVID-19, one-time relocation costs associated with the closure of the annex, and the loss of the previous fiscal year’s revenue from a major real estate brokerage transaction.」

「Growth in transport security from prime-contract services for the Resona Group’s Kansai mail delivery service, together with expansion from the April 2020 acquisition of 株式会社新栄ビルサービス and the October acquisition of 株式会社明成, offset weakness in construction and equipment sales and the decline in ATM management as cashless payments gained traction. Net sales increased 3.9% year on year to ¥19,221 million. On the earnings front, operating profit fell 47.4% to ¥475 million, ordinary profit fell 42.4% to ¥610 million, and net income attributable to owners of the parent fell 48.4% to ¥426 million due to the effects of COVID-19 and the reversal of the impact of a major real estate transaction. The Group nevertheless continued to work toward achieving its plan in full.」

「During the cumulative second quarter under review, net sales declined as construction and equipment sales and building maintenance struggled, while ATM management also declined as the shift toward cashless payments progressed. However, growth in transport security following the commencement of prime-contract services for the Resona Group’s Kansai mail delivery service in January 2020 and the acquisition of 株式会社新栄ビルサービス as a subsidiary in April 2020 offset the decline, resulting in net sales of ¥12,676 million, up 1.5% year on year. On the earnings front, … operating profit was ¥274 million, down 62.7% year on year, and ordinary profit was ¥364 million, down 56.3%.」

「The COVID-19 pandemic and the resulting state of emergency brought economic activity to a standstill, creating a challenging environment for the Group as customers suspended or scaled back operations and various events were canceled or postponed. Nevertheless, net sales amounted to ¥6,219 million, up 4.1% year on year, driven by revenue from the Kansai mail delivery service for the Resona Group, for which the Group began providing prime-contract services in January 2020, and revenue from 株式会社新栄ビルサービス.」

「Total net sales amounted to ¥24,842 million, up ¥1,609 million, or 6.9%, from the previous fiscal year, marking the 9th consecutive period of revenue growth. On the earnings front, personnel and property-related expenses increased due to measures to improve compensation to secure personnel, advance staffing for a large transportation services order, a TV commercial campaign and relocation costs associated with the closure of the head office annex. Nevertheless, operating profit rose ¥49 million, or 4.8%, to ¥1,079 million, while ordinary profit rose ¥48 million, or 4.0%, to ¥1,253 million, marking the 4th consecutive period of profit growth.」

「During the cumulative nine-month period under review, the Group’s net sales amounted to ¥18,494 million, up 9.0% year on year, setting a new record for the cumulative nine-month period. Growth was driven by the addition of Morita Building Management Group to the Group, increased orders for on-site security services including the G20-related windfall, and solid performance in the real estate business. Although personnel expenses increased substantially following the implementation of measures to secure and retain personnel at Group companies, operating profit rose 25.3% to ¥904 million and ordinary profit rose 21.1% to ¥1,058 million, also supported by the closing of major real estate transactions.」

「During the cumulative second quarter under review, the Group’s net sales amounted to ¥12,484 million, up 11.8% year on year, driven by higher revenue following the addition of Morita Building Management Group to the Group, orders for temporary security services related to the G20, equipment sales and solid performance in the real estate business. On the earnings front, personnel expenses increased substantially due to one-time expenses associated with the addition of Morita Building Management Group and planned pay raises and promotions, as well as higher recruitment costs, across the Group. However, operating profit rose 71.2% to ¥737 million and ordinary profit rose 64.8% to ¥835 million, supported in part by the closing of a major real estate transaction.」

「Net sales amounted to ¥5,971 million, up 8.1% year on year, as on-site security services, including G20-related work, led growth, while building management also performed solidly following the acquisition of Morita Building Management Group subsidiaries and an increase in spot construction orders. On the earnings front, outsourcing costs increased with higher sales, while personnel expenses rose substantially due to measures to improve employee compensation, including base-pay increases, a larger bonus fund, and pay raises and promotions, implemented in response to labor shortages and work-style reform. As a result, operating profit fell 32.2% to ¥146 million and ordinary profit fell 26.8% to ¥204 million. However, net income attributable to owners of the parent rose sharply by 99.5% to ¥323 million due to gains on the sale of shares held following a tender offer, as well as a gain on step acquisitions associated with the acquisition of Morita Building Management Group.」

「Net sales amounted to ¥23,233 million, up ¥1,048 million, or 4.7%, from the previous fiscal year, marking the 8th consecutive period of revenue growth. On the earnings front, personnel expenses increased due to ongoing labor shortages and measures addressing work-style reform, while outsourcing expenses also rose as sales expanded. However, thorough improvements in operating efficiency resulted in operating profit of ¥1,029 million, up ¥69 million, or 7.3%, and ordinary profit of ¥1,204 million, up ¥142 million, or 13.4%, marking the 3rd consecutive period of profit growth. Net income attributable to owners of the parent rose ¥110 million, or 18.6%, to ¥705 million.」

「During the cumulative nine-month period under review, the Group’s net sales amounted to ¥16,967 million, up 3.6% year on year, setting a new record for the cumulative nine-month period. Operating profit rose 22.2% to ¥721 million, ordinary profit rose 29.1% to ¥874 million, and net income attributable to owners of the parent rose 47.3% to ¥513 million.」

「During the cumulative second quarter under review, the Group’s net sales amounted to ¥11,165 million, up 3.0% year on year. Although orders for spot projects and other work in building management were weak, security services led by on-site facilities and construction and equipment sales, together with the real estate business, performed solidly. On the earnings front, outsourcing costs and personnel expenses increased, but cost controls for property-related expenses were effective and the high-margin real estate business contributed. Operating profit rose 11.4% to ¥430 million, ordinary profit rose 14.9% to ¥506 million, and net income attributable to owners of the parent rose 32.1% to ¥288 million.」

「Net sales amounted to ¥5,524 million, up 2.9% year on year. Although building management revenue declined slightly due to lower spot sales, solid performance in the security and real estate businesses drove the increase. On the earnings front, outsourcing costs increased alongside higher sales, but cost controls for property-related expenses and personnel expenses were effective, and the high-margin real estate business also contributed. Operating profit rose 28.5% to ¥215 million, ordinary profit rose 30.0% to ¥278 million, and net income attributable to owners of the parent rose 65.7% to ¥162 million.」

「Total net sales amounted to ¥22,184 million, up ¥909 million, or 4.3%, from the previous fiscal year, marking the 7th consecutive period of revenue growth. On the earnings front, personnel expenses increased due to on-site responses for M&A projects, labor shortages and measures addressing work-style reform, while amortization of goodwill and other expenses also rose. However, thorough improvements in operating efficiency at affiliated companies and contributions from the real estate business helped lift operating profit ¥300 million, or 45.6%, to ¥959 million. Ordinary profit rose ¥284 million, or 36.5%, to ¥1,062 million, marking the 2nd consecutive period of profit growth.」

「During the cumulative nine-month period under review, the Group posted higher net sales year on year as the security business acquired through M&A in the previous fiscal year contributed and the building management business at Group companies recovered from its poor performance in the previous fiscal year. Operating profit and ordinary profit also increased year on year, as continuous price increase negotiations and more efficient staffing, particularly in building management, absorbed increases in personnel and other expenses. Net sales amounted to ¥16,371 million, up 5.8% year on year, setting a new record for the cumulative nine-month period. Operating profit was ¥590 million, up 44.8%, ordinary profit was ¥677 million, up 34.2%, and net income attributable to owners of the parent was ¥348 million, up 17.9%.」

「As a result, during the cumulative second quarter under review, the Group’s net sales amounted to ¥10,841 million, up 5.3% year on year and representing the seventh consecutive period of revenue growth and record-high interim net sales. Contributions came from the machine security business acquired through M&A at the end of the previous fiscal year, large facility security contracts won through new sales, and solid performance in machine security, facility security and building management. Operating profit rose 57.8% to ¥386 million, as performance at affiliated companies, which had struggled in the previous fiscal year due to rising personnel expenses, recovered following the establishment of an integrated Group sales structure. Ordinary profit rose 46.2% to ¥441 million, and net income attributable to owners of the parent rose 15.3% to ¥218 million.」

「As a result, during the cumulative first quarter under review, the Group’s net sales amounted to ¥5,369 million, up 4.9% year on year, as the security, building management and real estate businesses all performed solidly. On the earnings front, operating profit rose 49.6% year on year to ¥167 million, despite continued increases in personnel expenses, reflecting the benefits of group-wide cost controls implemented since the previous fiscal year. Ordinary profit rose 36.2% to ¥214 million, while net income attributable to owners of the parent fell 11.7% to ¥97 million.」

「Net sales amounted to ¥21,274 million, up ¥456 million, or 2.2%, from the previous consolidated fiscal year, reflecting solid performance in the security and real estate businesses. On the earnings front, despite increases in personnel expenses, outsourcing costs and other expenses, the Group thoroughly improved efficiency across its operations and shifted administrative personnel to sales positions following the introduction of T-LINK, a new core administrative system. As a result, operating profit rose ¥43 million, or 7.1%, to ¥658 million, ordinary profit rose ¥12 million, or 1.6%, to ¥778 million, and net income attributable to owners of the parent rose ¥157 million, or 50.0%, to ¥471 million.」

「As a result, during the cumulative nine-month period under review, the Group posted higher net sales year on year as its security and real estate businesses performed solidly. Operating profit and ordinary profit, however, declined year on year because personnel expenses, outsourcing costs and other expenses increased more than expected, particularly in the building management business.」

「Net sales amounted to ¥10,292 million, a slight increase of ¥55 million, or 0.5%, year on year, as solid performance in transport security, contract management and real estate offset sluggish performance in the Group’s core businesses of machine security and comprehensive building management. Operating profit was ¥244 million, down ¥93 million, or 27.6%, year on year. Ordinary profit was ¥301 million, down ¥119 million, or 28.3%, while net income attributable to owners of the parent was ¥189 million, down ¥45 million, or 19.5%.」

「As a result, during the cumulative first quarter under review, the Group’s net sales amounted to ¥5,117 million, up ¥122 million, or 2.4%, year on year, reflecting solid performance in the security, building management and real estate businesses. On the earnings front, operating profit was ¥112 million, down ¥3 million, or 3.4%, year on year, due to higher personnel expenses at affiliated companies following increases in the minimum wage, as well as a temporary increase in property-related expenses, including uniform renewals. Ordinary profit was ¥157 million, down ¥16 million, or 9.4%, year on year, while net income attributable to owners of the parent was ¥110 million, up ¥6 million, or 6.6%, year on year.」

「The Group has pursued the following initiatives with the aim of “expanding revenue,” “improving quality” and “improving productivity.”」