Sohgo Security Services : Consolidated Financial Results for the Fiscal Year Ended March 31, 2025 (20250513financial summary)

Consolidated Financial Results for Fiscal Year Ended March 31, 2025 Prepared in Conformity with Accounting Principles Generally Accepted in Japan (Japanese GAAP)

May 13, 2025

Listed Company Name SOHGO SECURITY SERVICES CO., LTD. TSE Stock Market Code No.: 2331 URL https://www.alsok.co.jp/

Representative: (Title) Representative Director, Group COO (Name) Ikuji Kayaki

Financial and accounting: (Title) Director and Senior Executive Officer (Name) Kazuhide Shigemi TEL [phone]

Ordinary general shareholders' meeting date	June 25, 2025	Cash dividend payment start date	June 26, 2025
Securities report submission date	June 20, 2025

Preparation of supplementary briefing materials on financial results: Yes Holding of results briefing: Yes (For institutional investors and analysts)

(Millions of yen, rounded down to the nearest million)

1. Consolidated financial results for the fiscal year ended March 31, 2025 (April 1, 2024 - March 31, 2025)

   1. Consolidated operating results (Percentages indicate increase or decrease from the same quarter of the preceding fiscal year)

      	Net sales		Operating income		Ordinary income		Profit attributable to owners of parent
      	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      Fiscal year ended March 31, 2025	551,881	5.8	40,201	5.6	43,107	4.7	27,105	1.8
      March 31, 2024	521,400	5.9	38,078	5.9	41,169	7.8	26,630	14.6

      Note: Comprehensive income Fiscal year ended March 31, 2025 ¥24,550 millions (55.4%)

      Fiscal year ended March 31, 2024 ¥55,107 millions 119.1%

      	Net income per share	Diluted net income per share	ROE (Net income to equity)	Ordinary income to total assets	Operating income to sales
      	Yen	Yen	%	%	%
      Fiscal year ended March 31, 2025	55.41	-	7.9	7.5	7.3
      March 31, 2024	52.95	-	8.2	7.5	7.3

      Reference: Equity in earnings of affiliates	Fiscal year ended March 31, 2025	¥2,134 millions
      (2) Consolidated financial conditions	Fiscal year ended March 31, 2024	¥2,062 millions

      	Total assets	Net assets	Equity ratio	Net assets per share
      	Millions of yen	Millions of yen	%	Yen
      Fiscal year ended
      March 31, 2025	572,402	376,000	59.1	697.96
      March 31, 2024	571,463	377,754	60.2	687.34

      Reference: Equity capital Fiscal year ended March 31, 2025 ¥338,433 millions

      Fiscal year ended March 31, 2024 ¥344,100 millions

      (3) Consolidated cash flows

      	Net cash provided by (used in) operating activities	Net cash provided by (used in) investing activities	Net cash provided by (used in) financing activities	Cash and cash equivalents at the end of the period
      	Millions of yen	Millions of yen	Millions of yen	Millions of yen
      Fiscal year ended March 31, 2025	42,647	(15,550)	(36,309)	60,018
      March 31, 2024	56,063	(17,448)	(20,967)	69,162

2. Dividend

   	Dividends per share					Total dividends (Annual) (Total)	Consolidated payout ratio (Consolidated)	Consolidated dividends to net assets
   	End of 1Q	End of 2Q	End of 3Q	Year-end	Total
   	Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
   Fiscal year ended March 31, 2024	-	8.70	-	15.00	23.70	11,872	44.8	3.7
   March 31, 2025	-	12.40	-	13.40	25.80	12,513	46.6	3.7
   Fiscal year ending March 31, 2026 (Forecast)	-	13.60	-	13.60	27.20		44.9

   Detail of year-end dividend as of March 31, 2025: Ordinary dividend ¥12.40 Commemorative dividend ¥1.00

3. Forecast for consolidated financial results for the fiscal year ending March 31, 2026 (April 1, 2025 - March 31, 2026)

   (Figures rounded down to the nearest million)

   	Net sales		Operating income		Ordinary income		Profit attributable to owners of parent		Net income per share
   	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
   Six months ending June 30, 2025 (cumulative)	284,300	8.0	18,100	18.6	19,700	18.3	12,000	21.8	24.75
   Annual	590,000	6.9	43,900	9.2	47,000	9.0	29,400	8.5	60.63

   Notes:

   1. Changes in consolidated subsidiaries (changes in scope of consolidation): Yes

      Added: 3 (company name) Consolidated subsidiary Nihon Guard Co., Ltd., Kanso Co., Ltd., and one other company Removed: -

   2. Changes in accounting policies, changes in accounting estimates, and restatement

      ① Changes in accounting policies arising from revision of accounting standards: Yes

      ② Changes arising from other factors: No

      ③ Changes arising from accounting estimate: No

      ④ Restatement: No

      Fiscal year ended March 31, 2025	510,200,210 shares	Fiscal year ended March 31, 2024	510,200,210 shares
      Fiscal year ended March 31, 2025	25,313,325 shares	Fiscal year ended March 31, 2024	9,572,420 shares
      Fiscal year ended March 31, 2025	489,214,507 shares	Fiscal year ended March 31, 2024	502,894,770 shares

   3. Number of shares outstanding (ordinary shares)

① Number of shares issued (including treasury stock)

② Number of shares of treasury stock

③ Average number of shares throughout the fiscal year

Note: On July 1, 2023, there was a stock split in which each share of common stock was split into 5 shares. The "Number of shares issued," the "Number of shares of treasury stock," and the "Average number of shares throughout the fiscal year " are calculated as if the stock split had been conducted at the beginning of the previous consolidated fiscal year.

(Reference) Non-consolidated financial results

1. Non-consolidated financial results for the fiscal year ended March 31, 2025 (April 1, 2024 - March 31, 2025)

   1. Non-consolidated operating results (Figures rounded down to the nearest million)

      	Net sales		Operating income		Ordinary income		Net income
      	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      Fiscal year ended
      March 31, 2025	255,573	(0.4)	15,992	(9.9)	30,359	(6.2)	24,570	(4.8)
      March 31, 2024	256,633	3.1	17,747	11.7	32,368	10.8	25,809	8.5

      	Net income per share	Diluted net income per share
      	Yen	Yen
      Fiscal year ended
      March 31, 2025	50.21	-
      March 31, 2024	51.26	-

   2. Non-consolidated financial conditions

	Total assets	Net assets	Equity ratio	Net assets per share
	Millions of yen	Millions of yen	%	Yen
Fiscal year ended March 31, 2025	371,802	257,571	69.3	531.07
March 31, 2024	369,966	262,660	71.0	527.78

Reference: Equity capital Fiscal year ended March 31, 2025 ¥257,571 millions

Fiscal year ended March 31, 2024 ¥262,660 millions

• This summary of financial results falls outside the scope of review of certified public accountants and accounting auditors.

• Explanation of Appropriate Use of Forecasts and Other Notes (Cautionary statement regarding forward-looking statements, etc.)

The forward-looking statements such as operational forecasts contained in this summary of financial results are based on the information currently available to the Company and certain assumptions which are regarded as legitimate, and the Company does not promise the achievement of these results. Actual results may differ significantly from these forecasts due to various factors.

1. Consolidated Financial Statements and Significant Notes

(1) Consolidated Balance Sheets

(Millions of yen)

As of March 31, 2024 As of March 31, 2025

Assets

Current assets

Cash and deposits	76,999	68,669
Cash for Transportation Security Services	74,200	81,557
Notes and accounts receivable-trade and contract assets	69,054	69,716
Lease receivables and investment assets	4,648	4,302
Short-term investment securities	30	449
Raw materials and supplies	12,451	14,111
Costs on uncompleted construction contracts	70	32
Advances paid	5,500	5,640
Other	9,230	12,420
Allowance for doubtful accounts	(125)	(178)
Total current assets	252,061	256,722
Non-current assets
Property, plant and equipment
Buildings and structures	68,989	69,628
Accumulated depreciation	(38,441)	(39,740)
Buildings and structures, net	30,548	29,887
Machinery, equipment and vehicles	156,902	161,719
Accumulated depreciation	(132,383)	(135,892)
Machinery, equipment and vehicles, 24,518 25,826 net
Land	26,214	27,068
Lease assets	56,392	56,876
Accumulated depreciation	(25,448)	(26,885)
Lease assets, net	30,943	29,991
Construction in progress	1,330	1,823
Other	25,062	27,759
Accumulated depreciation	(18,264)	(19,938)
Other, net	6,798	7,821
Total property, plant and equipment	120,353	122,418
Intangible assets
Software	6,891	5,211
Goodwill	31,442	29,873
Other	2,344	3,621
Total intangible assets	40,678	38,705
Investments and other assets
Investment securities	63,102	62,312
Long-term loans receivable	546	509
Leasehold and guarantee deposits	9,568	9,831
Insurance funds	1,839	1,979
Net defined benefit asset	59,874	59,698
Deferred tax assets	8,868	5,312
Other	15,082	15,837
Allowance for doubtful accounts	(512)	(928)
Total investments and other assets	158,370	154,555
Total non-current assets	319,402	315,679
Total assets	571,463	572,402

(Millions of yen)

	As of March 31, 2024		As of March 31, 2025
Liabilities
Current liabilities
Notes and accounts payable - trade		28,512	30,121
Short-term loans payable		6,965	12,476
Current portion of long-term loans payable		768	741
Current portion of bonds		-	200
Accounts payable - other		23,485	23,565
Lease obligations		5,129	5,164
Income taxes payable		5,917	8,111
Accrued consumption taxes		5,601	4,539
Provision for bonuses		2,309	2,558
Provision for directors' bonuses		122	128
Other		21,676	21,284
Total current liabilities		100,489	108,892
Non-current liabilities
Long-term loans payable		1,658	1,327
Lease obligations		36,056	34,836
Deferred tax liabilities		10,420	6,560
Deferred tax liabilities for land revaluation		314	271
Net defined benefit liability		39,595	39,534
Provision for directors' retirement benefits		1,875	1,975
Asset retirement obligations		827	844
Provision for loss on business		299	-
Other		2,171	2,158
Total non-current liabilities		93,219	87,509
Total liabilities		193,709	196,401
Net Assets
Shareholders' equity
Capital stock	18,675		18,675
Capital surplus	34,011		34,214
Retained earnings	264,650		278,283
Treasury stock	(6,074)		(21,074)
Total shareholders' equity	311,263		310,098
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	11,115		11,269
Revaluation reserve for land	(3,379)		(3,435)
Foreign currency translation adjustment	1,067		1,343
Remeasurements of defined benefit plans, net of tax	24,033		19,157
Total accumulated other comprehensive income	32,836		28,335
Non-controlling interests	33,654		37,566
Total net assets	377,754		376,000
Total liabilities and net assets	571,463		572,402