Notice Regarding Formulation of the Medium-Term Management Plan ‘ALSOK STAGE 2028’

Overview of 'ALSOK STAGE 2028' Medium-Term Management Plan

ALSOK Corporation has formulated the three-year medium-term management plan 'ALSOK STAGE 2028 (AS2028)' covering FY2026 to FY2028. Its basic policies include expanding business through growth market development, expanding service areas to respond to diverse risks, business reform utilizing DX and AI (BPR), strengthening human capital, and enhancing sustainability initiatives. Financial targets for FY2029 (ending March 2029) include consolidated sales of 680 billion to 750 billion yen, consolidated ordinary income of 68 billion to 75 billion yen, an ordinary income margin of approximately 10%, and ROE of approximately 10%. The dividend policy aims for stable dividends with a payout ratio of 40% to 50%.

Business Environment, Performance Trends, and Priority Strategies

The business environment faces various risks, including the Tokyo 2020 Olympics, the Noto Peninsula earthquake, Expo 2025 Osaka Kansai, rapid technological advances in AI and DX, and rising prices. FY2026/3's ordinary income margin is expected to fall below the GD2025 target, with an approximate two-year delay in reaching initial assumptions. Growth strategies include developing overseas, nursing care, and individual markets; strengthening customer base in existing markets; promoting DX and AI utilization; enhancing human capital; and strengthening sustainability initiatives. Focus areas include crime prevention, disaster response, facilities management, on-site services, disaster preparedness, elderly services, overseas operations, and cybersecurity.