Operating profit pressured by higher cost ratio and SG&A expenses

「In the Medical Services business, revenue increased 7.6% year on year to ¥48.4 billion, driven by strong sales of medical equipment and higher revenue at Takshashila Hospitals Operating Pvt. Ltd., a general hospital operator in India. Operating income declined 6.1% year on year to ¥3.0 billion, mainly due to higher selling, general and administrative expenses. In the BPO and ICT business, revenue declined 0.5% year on year to ¥64.4 billion due to the strong equipment sales recorded in the previous fiscal year, including servers, and lower revenue at 株式会社ＴＭＪ, which provides BPO services. Operating income, however, increased 28.6% year on year to ¥5.1 billion due to an improved cost ratio and lower selling, general and administrative expenses.」

「Meanwhile, the situation continued to require vigilance regarding the situation in the Middle East, natural disasters, and the effects of fluctuations in the financial and capital markets.」

「Cost of sales for the current consolidated fiscal year increased 3.5% year on year to ¥858.0 billion, while its ratio to revenue declined from 69.1% in the previous consolidated fiscal year to 68.3%. Selling, general and administrative expenses increased 5.1% year on year to ¥238.4 billion, and their ratio to revenue rose from 18.9% in the previous consolidated fiscal year to 19.0%.」

「In the BPO and ICT business, revenue was ¥64.7 billion, up 2.8% year on year, due to strong sales of equipment such as servers and higher revenue at TMJ, which provides BPO services. Operating profit was ¥3.9 billion, down 0.2% year on year, due to higher costs associated with the new data center that began operations in the previous fiscal year.」

「Cost of sales for the current consolidated fiscal year increased 3.9% year on year to ¥828.7 billion, while its ratio to revenue remained unchanged from the previous consolidated fiscal year at 69.1%. Selling, general and administrative expenses increased 4.7% year on year to ¥226.8 billion, and their ratio to revenue rose from 18.8% in the previous consolidated fiscal year to 18.9%.」

「In the Security Services business, revenue increased to ¥304.8 billion, up 1.9% year on year, driven by higher revenue from onsite security services, steady sales of centralized systems (online security systems) for businesses and households, and higher revenue at 株式会社アサヒセキュリティ, which primarily provides cash-in-transit services. Operating income declined 1.0% year on year to ¥56.1 billion, mainly due to higher personnel expenses, including investment in human resources. In the Insurance business, revenue declined 1.0% year on year to ¥28.2 billion despite higher insurance underwriting revenue, due to lower investment revenue. Operating income declined 53.0% year on year to ¥2.2 billion, mainly due to lower investment revenue and higher selling, general and administrative expenses, including systems investment. In the BPO and ICT business, revenue increased 0.6% year on year to ¥62.9 billion. Although revenue declined at 株式会社ＴＭＪ, which provides BPO services covering contact center and back-office operations, this was more than offset by strong sales of equipment such as servers and higher revenue from the data center business. Operating income declined 18.4% year on year to ¥3.9 billion due to higher costs associated with the launch of a new data center and higher selling, general and administrative expenses, including increased personnel expenses.」

「Cost of sales for the fiscal year increased 5.1% year on year to ¥797.4 billion, and its ratio to net sales rose from 68.9% in the previous fiscal year to 69.1%. SG&A expenses increased 5.3% year on year to ¥216.6 billion, while their ratio to net sales rose from 18.7% in the previous fiscal year to 18.8%.」

「In the BPO and ICT business, net sales were ¥93.7 billion, up 0.5% year on year. Although revenue declined at 株式会社ＴＭＪ, which provides BPO services covering contact center and general back-office operations, this was more than offset by increased revenue in the data center business. Operating profit was ¥7.9 billion, down 12.3% year on year, due to lower revenue at 株式会社ＴＭＪ and the higher cost ratio.」

「In the geospatial information services business, net sales were ¥22.3 billion, down 8.9% year on year due to lower revenue from the domestic public sector and other factors, while the business recorded an operating loss of ¥2.0 billion, compared with an operating loss of ¥70 million in the previous year, due to higher costs, including construction loss provisions, and increased SG&A expenses, including personnel expenses. In the BPO and ICT business, net sales were ¥62.6 billion, up 2.3% year on year, due to increased revenue in the data center business and at 株式会社ＴＭＪ, which provides BPO services covering contact center and general back-office operations. Operating profit was ¥4.8 billion, down 20.0% year on year, due partly to costs incurred by 株式会社ＴＭＪ as its business expanded and the number of locations increased.」

「In the geospatial information services business, net sales were ¥10.1 billion, down 10.4% year on year due to lower revenue from domestic public-sector and overseas operations, while the business recorded an operating loss of ¥1.3 billion, compared with an operating loss of ¥0.2 billion in the previous year, due to lower gross profit and increased SG&A expenses. In the BPO and ICT business, net sales were ¥31.7 billion, up 6.2% year on year, due to increased revenue in the data center business and at 株式会社ＴＭＪ, which provides BPO services covering contact center and general back-office operations. Operating profit was ¥2.4 billion, down 19.7% year on year, due to costs incurred by 株式会社ＴＭＪ as its business expanded and the number of locations increased, as well as higher costs resulting from increased fuel adjustment rates and other factors in the data center business.」

「Cost of sales for the fiscal year increased 6.6% year on year to ¥758.8 billion, and its ratio to net sales rose from 67.8% in the previous fiscal year to 68.9%. SG&A expenses increased 6.0% year on year to ¥205.7 billion, while their ratio to net sales rose from 18.5% in the previous fiscal year to 18.7%.」

「Operating profit was ¥82.1 billion, down 5.4% year on year, due to the presence of relatively profitable projects in the previous year and increased SG&A expenses from investments aimed at future growth. In the disaster prevention business, net sales were ¥97.9 billion, down 4.6% year on year, partly because the previous year included large projects, while operating profit was ¥2.6 billion, down 62.5% year on year, partly because relatively profitable projects were concentrated in the previous year. In the BPO and ICT business, net sales were ¥93.3 billion, up 10.3% year on year, due to increased revenue at 株式会社ＴＭＪ, which provides BPO services covering contact center and general back-office operations, as well as increased revenue in the data center business. Operating profit was ¥9.0 billion, down 4.4% year on year, due to higher costs resulting from increased fuel adjustment rates and other factors in the data center business.」

「Operating profit was ¥55.3 billion, down 6.0% year on year, due to the presence of relatively profitable projects in the previous year and increased SG&A expenses from investments aimed at future growth. Operating profit was ¥6.1 billion, down 2.4% year on year, due to higher costs resulting from increased fuel adjustment rates and other factors in the data center business.」

「In the security services business, net sales were ¥135.4 billion, up 0.6% year on year, mainly due to increased sales of large-scale security systems, primarily overseas. Operating profit was ¥27.5 billion, down 2.6% year on year, as the cost ratio rose due to investment in human capital, including base-pay increases, while SG&A expenses increased due to expanded advertising and investments aimed at future growth.」

「Cost of sales for the fiscal year increased 1.0% year on year to ¥712.1 billion, and its ratio to net sales fell from 68.1% in the previous fiscal year to 67.8%. SG&A expenses increased 0.3% year on year to ¥194.1 billion, while their ratio to net sales fell from 18.7% in the previous fiscal year to 18.5%.」

「In the BPO and ICT business, revenue was ¥56.0 billion, up 3.3% year on year, owing to higher data centre revenue and increased revenue at 株式会社ＴＭＪ, which provides BPO services for contact centre operations and back-office operations generally, while operating profit was ¥6.2 billion, down 5.6% year on year, owing mainly to the increase in the cost ratio and selling, general and administrative expenses.」

「In the geospatial information services business, revenue was ¥10.8 billion, up 6.5% year on year, due in part to higher revenue from the domestic public-sector segment resulting from increased surveying work using aerial and vehicle-mounted laser technology. Operating income was an operating loss of ¥200 million, compared with operating income of ¥80 million in the same period of the previous year, due in part to a higher cost ratio and increased selling, general and administrative expenses, including relocation costs related to the head-office move.」

「Cost of sales for the fiscal year decreased 2.4% year on year to ¥705.3 billion, and its ratio to net sales fell from 68.2% in the previous fiscal year to 68.1%. SG&A expenses decreased 0.5% year on year to ¥193.6 billion, while their ratio to net sales rose from 18.4% in the previous fiscal year to 18.7%.」

「In the geospatial information services business, revenue was ¥37.3 billion, up 1.1% year on year. Operating income was ¥2.1 billion, up 40.5% year on year, due to improved production efficiency, an improved cost ratio resulting from business optimization initiatives in the overseas segment, and lower selling, general and administrative expenses, among other factors.」

「Operating profit was ¥80 million, compared with an operating loss of ¥0.7 billion in the previous year, due to improved cost ratios resulting from business optimization initiatives in overseas operations and lower SG&A expenses.」

「In the disaster prevention business, net sales were ¥100.4 billion, up 12.9% year on year, partly due to efforts to pursue proactive sales activities, while operating profit was ¥8.8 billion, up 110.1% year on year, partly due to improved profitability compared with the previous year.」

「In the Disaster Prevention business, revenue was ¥65.0 billion, up 16.1% year on year, due to active sales efforts and other factors. Operating profit was ¥5.6 billion, up 237.2% year on year, due mainly to improved profitability compared with the previous corresponding period.」

「Cost of sales for the fiscal year increased 6.1% year on year to ¥692.2 billion, and its ratio to net sales rose from 67.2% in the previous fiscal year to 68.3%.」

「In the disaster prevention business, net sales were ¥89.0 billion, up 0.6% year on year, partly due to efforts to pursue proactive sales activities, while operating profit was ¥4.2 billion, down 38.5% year on year, mainly because projects with high cost ratios were concentrated and SG&A expenses increased.」

「In the security services business, net sales increased 1.8% year on year to ¥271.3 billion, owing to steady sales of centralized systems for offices and homes, higher revenue from Asahi Security Co., Ltd., which mainly provides cash-in-transit services, and higher revenue from guarding services following the addition of SECOM Tosec Co., Ltd. as a consolidated subsidiary. Operating profit decreased 0.5% to ¥57.2 billion owing partly to investments to develop the foundation for future sustainable growth.」

「In the disaster prevention business, net sales were ¥25.5 billion, up 12.3% year on year, partly due to efforts to pursue proactive sales activities, while operating profit was ¥30 million, down 92.1% year on year, mainly because projects with high cost ratios were concentrated and SG&A expenses increased.」

「In the medical services business, net sales were ¥53.2 billion, up 7.0% year on year, partly due to strong sales of medical equipment and pharmaceuticals supply services, while operating profit was ¥4.0 billion, down 0.8% year on year, due to the higher cost ratio and increased SG&A expenses.」

「In the disaster prevention business, net sales were ¥53.9 billion, up 1.5% year on year, partly due to efforts to pursue proactive sales activities, while operating profit was ¥3.0 billion, down 28.4% year on year, due to the higher cost ratio and increased SG&A expenses.」

「In the Geospatial Information Services business, revenue was ¥8.9 billion, down 9.9% year on year, as both the domestic and overseas divisions reported lower revenue, while the operating loss was ¥1.1 billion, compared with an operating loss of ¥700 million in the same period of the previous year, owing to lower revenue and the increase in the cost ratio.」

「Operating profit was ¥4.1 billion, down 1.0% year on year, due mainly to the higher cost ratio.」

「Operating profit was ¥2.7 billion, down 0.1% year on year, due mainly to the higher cost ratio.」

「Operating profit was ¥30.0 billion, down 2.1% year on year, due to the higher cost ratio and increased SG&A expenses.」