Tosnet

Basic Information

Stock Code
4754
Industry
Services
Category Detail
Lifestyle Services
Prefecture
Miyagi Prefecture
Establishment Year
March 1977
Listing Year
April 2000
Official Website
https://www.tosnet.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Interspace, ALSOK, Daishin Chemical, Showa Kasei, Kyoei Security Service, Toyo Tech, Secom, CSP, Aeon Delight

Overview

Tosnet is Tohoku's largest security company founded in 1977, providing business expansion through M&A and a wide range of security services.

Current Situation

Tosnet recorded consolidated sales of approximately 9.9 billion yen and net profit of approximately 560 million yen for the fiscal year ending September 2021, establishing a solid position in the service industry centered in the Tohoku region. In addition to its main businesses of traffic guidance security and facility security, it deploys a variety of security services including train watchstanding and event security. Leveraging its capital alliance with Secom, it has advanced into the AI security field to enhance competitiveness. It conducts regionally rooted management and promotes nationwide expansion using multiple subsidiaries. On the environmental front, it is advancing reforms emphasizing sustainability, such as introducing CO2-free mobile power vehicles. Since the 2020s, it has aggressively pursued M&A strategies to expand bases in the Tokyo metropolitan area, Hokuriku, and Tohoku regions. Moving forward, it aims for growth through advanced crime prevention technology and new business development. Amid intensifying competition in the security industry, it focuses on maintaining safety quality and improving labor environments while emphasizing human resource development. Support for reconstruction in areas affected by the Great East Japan Earthquake is also a key pillar of its business activities.

Trivia

Interesting Facts

  • Known as Tohoku's largest security company
  • Company name is abbreviation for Total Security Network
  • Secom is one of the major shareholders with capital alliance
  • Owns multiple proprietary training facilities with focus on human resource development
  • Implemented reconstruction support in disaster areas after Great East Japan Earthquake
  • Early introduction of AI security technology for operational efficiency
  • Pioneered introduction of environmentally friendly mobile power vehicles in the industry
  • Accelerating nationwide expansion through diverse regional subsidiaries
  • Handles security for multiple famous sports events
  • President is local native emphasizing regional contributions
  • Expanding business foundation through numerous M&A
  • One of the companies introducing discretionary labor system in security industry
  • Deploys proprietary developed security equipment brands
  • Holds internal contests for human resource development
  • Originally started as Tohoku Taisho Security Assurance

Hidden Connections

  • Capital alliance with Secom serves as foundation for technology introduction and business expansion
  • Subsidiary event security network covers from Hokkaido to Okinawa
  • Established proprietary safety management methods at traffic guidance security sites
  • Leadership in security industry related to earthquake reconstruction
  • AI security technology introduction serving as model for other companies
  • Maintains strong relationships with local governments through regionally rooted management
  • Flexible response to diverse security needs through multiple subsidiaries
  • Safety training facilities are among the largest in the industry

Future Outlook

Growth Drivers

  • Promotion of AI and IoT security technology adoption
  • Increasing urban development in Tohoku and regional cities
  • Expansion of event and sports-related demand
  • Rising needs for environmentally friendly security equipment
  • Technological innovations to address labor shortages
  • Strengthening collaboration with regional communities
  • Changes in facility security due to spread of telework
  • Market expansion in security industry accompanying legal revisions
  • Diversification response to increasing foreign workers
  • Area share expansion through M&A
  • One-stop provision of security-related services
  • Increasing demand from heightened disaster prevention awareness

Strategic Goals

  • Achieve over 70% market share in Tohoku region
  • Raise AI adoption rate to top level in security industry
  • Aim to become a company excelling in CO2 reduction and environmental consideration
  • Build sustainable organization through diverse human resource utilization
  • Achieve annual sales exceeding 15 billion yen through business expansion
  • Strengthen major nationwide bases and standardize service quality
  • Enter new security fields and diversify services
  • Deepen coexistence with regions to solidify social trust
  • Nationwide rollout of safety education programs
  • Strengthen disaster response capabilities to become regional disaster prevention leader

Business Segments

Construction Site Security

Overview
Supports safety management and accident prevention at construction sites.
Competitiveness
Abundant on-site experience and rapid response capability
Customers
  • Construction companies
  • General contractors
  • Local governments
  • Event organizers
Products
  • Traffic guidance security
  • Train watchstanding security
  • Crowd control security

Facility and Building Security

Overview
Implements building safety maintenance and tenant protection.
Competitiveness
Efficient security through introduction of latest technology
Customers
  • Commercial facilities
  • Office buildings
  • Public facilities
  • Hospitals
Products
  • Facility security service
  • Surveillance camera systems
  • Patrol security

Event and Sports Venue Security

Overview
Supports safe operations of large-scale events.
Competitiveness
Extensive track record in large-scale event security
Customers
  • Event operators
  • Sports organizations
  • Local governments
Products
  • Crowd control security
  • Venue entrance management
  • Spectator guidance

Corporate Security

Overview
Comprehensive security to protect corporate assets and information.
Competitiveness
Customization capabilities and technological strength
Customers
  • Manufacturing industry
  • Logistics industry
  • IT companies
  • Financial institutions
Products
  • Access control
  • Surveillance system installation
  • Risk consulting

Transportation Infrastructure Security

Overview
Supports safe operation of transportation infrastructure.
Competitiveness
Specialized expertise in railway security
Customers
  • Railway companies
  • Highway administrators
  • Public transportation
Products
  • Train watchstanding security
  • Traffic guidance
  • Infrastructure security

Security Technology Services

Overview
Provides technology to improve efficiency and quality of security.
Competitiveness
Possesses advanced AI-integrated security technology
Customers
  • Security companies
  • Facility operators
  • Various organizations
Products
  • Security system sales
  • AI security technology
  • Training services

Competitive Advantage

Strengths

  • Abundant regionally rooted security expertise
  • Extensive network of bases centered in Tohoku and Tokyo metropolitan area
  • Comprehensive strength from diverse security services
  • Effects of strategic alliance with Secom
  • Business expansion through active M&A
  • High-level safety training and employee development system
  • Introduction of environmentally friendly security equipment
  • Strong customer base and long-term transaction record
  • Rapid and flexible response capabilities
  • Extensive experience in various event security
  • Introduction of advanced AI technology
  • Track record in regional reconstruction support
  • Ownership of comprehensive training facilities
  • High motivation among on-site staff
  • Solid financial foundation

Competitive Advantages

  • High trust as Tohoku's leading security company
  • Achieved nationwide expansion and service diversification through many subsidiaries
  • Technological superiority from capital alliance with Secom
  • Promoting business efficiency through active introduction of AI security technology
  • Advanced initiatives in environmental measures such as CO2-free power vehicles
  • Capable of detailed, locally attuned service provision
  • Covers wide range of security fields to meet diverse customer needs
  • High specialized capabilities in accident prevention and safety management
  • Protects safety of large events with extensive event security experience
  • High customer satisfaction through flexible customization
  • Corporate philosophy emphasizing social contributions like disaster area support
  • Ensures stable quality through high employee training
  • Continuing expansion via strong regional networks
  • Deploying proactive sales strategies for new market development
  • Possesses financial stability and sustainable growth foundation

Threats

  • Intensifying competition in the security industry
  • Rising labor costs due to labor shortages
  • Increasing social pressure for labor environment improvements
  • Increased initial costs for adopting new technologies
  • Impact on business operations from regulatory changes
  • Decrease in security demand due to economic fluctuations
  • Impact on business bases from natural disasters
  • Risk of new entrants from other industries
  • Customer trend toward reducing outsourced security costs
  • Changes in demand for physical security due to advances in IT security
  • Increased equipment investment burden from stricter environmental regulations
  • Business risks from social instability factors

Innovations

2023: Strengthening Alliance with AI Security Company

Overview
Expanding partnerships to leverage AI technology for security operation efficiency.
Impact
Achieved improved security quality and reduced operational costs.

2022: Launch of CO2-Free Mobile Power Vehicle Introduction

Overview
Adopted hybrid power vehicles to reduce environmental impact.
Impact
Significantly reduced CO2 emissions and strengthened environmental response.

2021: Acquisition of Tokyo Metropolitan Security Company

Overview
Acquisition aimed at strengthening business foundation in Tokyo metropolitan area.
Impact
Successfully increased sales and expanded customer base.

2020: New Security Training Center Becomes Operational

Overview
Newly established facility for employee training and technology development.
Impact
Contributes to skill improvement and quality maintenance for security personnel.

Sustainability

  • Active introduction of CO2-free mobile power vehicles
  • Thorough safety and health education for employees
  • Participation in local disaster-affected area reconstruction support activities
  • Energy-saving and environmentally considerate office operations
  • Regional employment creation and support
  • Promotion of recycled resource use and waste reduction
  • Strengthening measures to promote employment of women and seniors
  • Labor environment improvement through AI technology utilization
  • Sponsorship and participation in local crime prevention events
  • Environmental education at training facilities
  • Infection control measures and health promotion activities
  • Promotion of internal work style reforms