The Company's performance for the fiscal year ended March 31, 2024 is on track to achieve VISION 2027, with record highs in both Net sales and Operating profit, thanks to solid growth in maintenance and repair operations and substantial growth in modernization operations.
The JES Group's Philosophy is "Safety above anything else" "No cutting corners" and "Building on Trust." Based on this philosophy, the JES Group has strengthened its structure by expanding its network of bases and strengthening recruitment in order to achieve its Mid-term Management Plan. As a result, the number of domestic maintenance contracts reached 100,000 units in the fiscal year ended March 2024 and 110,000 units in December 2024.
The number of employees increased from the end of March 2024 to 2,024 at the end of December 2024, including 1,260 engineers. In response to Japan's recent social challenges of a declining workforce and labor shortages, we are working on reviewing employee compensation and developing a robust work force.
Modernization services, which grew substantially in the fiscal year ended March 31, 2024, are environmentally friendly services that do not involve the removal or installation of new elevators and other equipment as they age, but rather the refurbishment of control panels and hoisting equipment only to improve reliability, safety, and operating efficiency. In addition, since the manufacturer may stop the supply of parts of some models , modernization will enable safe, secure, and comfortable use of elevators and other equipment.
In the fiscal year ending March 31, 2025, the escalator modernization project began in earnest. Escalators account for approximately 5% of the JES Group's maintenance contracts, and we believe that we can contribute to society through modernization services.
At the Annual General Meeting of Shareholders held in June 2024, we reviewed the structure of the Board of Directors to revitalize and strengthen its supervisory function. Under a Board of Directors with strengthened governance, and led by the Sustainability Committee, we intend to promote sustainability initiatives to solving social issues through our services and work together with our stakeholders to advance the creation of a sustainable society.
We appreciate your continued support.
President and Representative Director CEO
Katsushi Ishida
Thank you all for your continued support of the JES Group.
The JES Group expects that its financial results for the fiscal year ending March 31, 2025 will be the highest ever, surpassing its record results in the fiscal year ended March 31, 2024.
We recognize that the business environment is becoming increasingly uncertain as the world faces various risks, such as the rapidly changing international political and economic situation and increasing environmental challenges, as well as a declining workforce due to Japan's declining birthrate and aging population.
In addition to financial targets and shareholder returns, we have stated in VISION2027 that we will promote ESG management. In facing social issues, we believe that strengthening ESG initiatives is important for realization of a sustainable society and sustainable business growth, and is our responsibility as a listed company.
Here is a description of typical initiatives:
■ Promoting Health Management
As stated in JES Group's materiality, securing human resources is an important management issue. To secure human resources, the Company is strengthening its human capital by stepping up new graduate and mid-career recruitment activities, raising wages through evaluation system revisions, improving the environment, and enhancing its human resource development system. One of our initiatives is the "Health Declaration," a new initiative aimed at creating a society in which employees are energetic and contribute to an affluent, comfortable, and healthy social life and economic development.
■ Strengthen governance and promote diversity
At the Annual General Meeting of Shareholders held in June 2024, the structure of the Board of Directors was changed so that three of the five directors are outside directors (including two female), bringing the ratio of outside directors to more than a majority at 60%.
In addition, two of the three Audit & Supervisory Board member were outside corporate Audit & Supervisory Board member (including one female). As a result, the ratio of female corporate auditors was 37.5%, which is in line with the Tokyo Stock Exchange's requirement for prime listed companies to aim for a ratio of 30% or more female corporate auditors by 2030.
We will continue to turn both financial and non-financial wheels to develop our business and solve social issues. In this report, we would like to share with you the various initiatives of the JES Group.
Director Deputy President CFO
General Manager of Business Administration Headquarters
Chairman of Sustainability Committee
Kimihiko Imamura