SECOM Group Road Map 2027

© 2023 SECOM CO., LTD. All rights reserved.

-1-Review of the SECOM Group Road Map 2022
We reported record-high consolidated operating profit in the fiscal year ended March 31, 2022, despite the impact ofsocioenvironmental changes since the launch of the SECOM Group Road Map 2022
Results of consolidated operating profit in the fiscal year ended March 31, 2023, fell short of targets, owing to a
combination of factors such as unforeseen cost increases and employee wage hikes, but efforts in line with the SECOM
Group Road Map 2022 achieved solid results, underpinning the creation of a foundation for future growth
2019(Actual)2020(Actual)2021(Actual)2022(Actual)2023(Actual)Road Map 2022
targets

Consolidated
revenue¥1,013.8 billion¥1,060.0 billion¥1,035.8 billion¥1,049.8 billion¥1,101.3 billion¥1,100.0 billion

Consolidated
operating profit¥130.2 billion¥142.8 billion¥136.9 billion¥143.4 billion¥136.7 billion¥155.0 billion

9.4%

8.8%

7.1%

8.6%

8.4%

Above 8%

ROE

(Years ended March 31)

Achievements under Road Map 2022
Launched the new System Security AZ and AZ-Air
security platforms for commercial premises

Launched SECOM Monitoring Service for Seniors using
a dedicated app and enhanced to link SECOM Home
Security with third-party devices

Started offering security services in Turkey andestablished the ASEAN Innovation Center

Augmented HR technology services that arecompatible with commercial security services andreinforced collaborative capabilities

Enhanced returns to employees, including byraising basic wages

Made Senon Ltd. a subsidiary and transformed Secom
Joshinetsu Co., Ltd.,
into a wholly owned subsidiary© 2023 SECOM CO., LTD. All rights reserved.

-2-

Background to the Formulation of the SECOM Group Road Map 2027
Socioenvironmental changes and our future approach
Technological advances

Worsening perceptions of
personal safety

Increasingly frequent/severe
natural disasters

Declining labor force

Aging of society

Global inflationetc.

• Issues, including those related to technological advances and a declining labor force, are increasing inurgency• In addition to diverse socioenvironmental changes, evolving circumstances are leading to themanifestation of unforeseen risks• The importance customers place on safety and peace of mind continues to grow, driven by mounting
concern and unease about security issues
By accurately grasping needs arising from these changes, and responding effectively withinnovative services, we will continue striving to provide safety and peace of mind to customers
whatever the situation. At the same time, we will work to address social imperatives, positioning us
to achieve sustainable growth together with society.

Formulation of the SECOM Group Road Map 2027

• We formulated the SECOM Group Road Map 2027 with the intention of sharing our future direction
with our stakeholders
Seeking to deliver enduring safety and peace of mind to customers in an ever-changing society, wewill continue to expand and enhance our core strategies. Through these efforts, we will strive toextend a steady stream of distinctive services that deliver safety and peace of mind, as well as makelife more comfortable and convenient, while intensifying our emphasis on stakeholder returns.
© 2023 SECOM CO., LTD. All rights reserved.

-3-Positioning of the SECOM Group Road Map 2027
With the aim of realizing the goals of the SECOM Group’s Vision for 2030, we have clarified our strategic focus
through 2027

Road Map 2027

Capitalize on advanced technologies

and extensive know-how toprovide safety and peace of mind

Road Map 2022

in all situation

Expedite growth byConnection

Enhanced value

ALL SECOM

Collaboration

clarifying priority
issues andanticipating needs

2018–2022© 2023 SECOM CO., LTD. All rights reserved.

2023–2027

2030-4-Collaboration with Partners
Communicate new value to society in a manner that transcends the traditional security services framework
through open innovation involving partners who share our philosophy

Overseas Technology

Companies in OtherCompanies

Industries

Domestic Technology
Companies

Start-up Companies✓

Develop new services that leverage cutting-edge technologies✓

Deliver an unprecedented user experience✓Drive evolution of existing services and enhance service quality

Promoting further open innovation with a wide variety of companies© 2023 SECOM CO., LTD. All rights reserved.

-5-Outline of the SECOM Group Road Map 2027
on advanced technologies and extensive know-how to provide
Road Map 2027 Capitalize
safety and peace of mind in all situations
Corestrategies
Expandmonitoringand securityservices

Key initiatives

Provide innovative security-focused services and solutions➢ Realize seamless protection by linking diverse information in the Mimamori (“Monitoring”)
Cloud➢ Create a business infrastructure that combines robust security and an open cloudRealize further growth in promising overseas markets
Strengthen
overseas
operations

Reinforce
BPO andICT
services➢ Add depth to existing security services and medical services businesses➢ Cultivate new business portfolios in new overseas markets and new business areas

Create an infrastructure that supports customers’ operations➢ Enhance service infrastructure by establishing new data centers and expanding network➢ Expand solutions to assist customers in ensuring smooth operations and provide effective
business process outsourcing (BPO) services

Enhance productivity by maximizing service value and improving operational efficiency

Improveproductivity➢ Implement initiatives that facilitate the provision of a steady stream of new services andmaximize service value➢ Leverage the latest technologies to help employees reach their full potential and improve
operational efficiency

Ensure SECOM remains the company of choice for all stakeholders
Rewardstakeholders➢ Securing and fostering human resources by improving working environment including
measures designed to bolster employee engagement➢ Press ahead with sustainability initiatives to earn the trust of all stakeholders© 2023 SECOM CO., LTD. All rights reserved.

-6-

Security Services: Develop More Advanced Monitoring Services
Combine home security and the Mimamori Cloud to offer a wide range of services for seniors, their family
members, nursing care providers and others
Security in the event of an emergency

Everyday monitoring
Mimamori CloudControl system

Security guardsVital-sign data
Healthcare-related advice

Emergency

Dailyrhythms

Detection of anirregularity

Healthcare data
Environmentaldata
Record ofactivities, etc.

Sensing

Monitoring
Safety confirmation

Data
provision

New services

Partners

Collaboration
with partners

Interactive verbal
communication

Healthcare

Communication

Seniors

Services that enable unobtrusive, stress-free monitoring• Highly accurate, discreet sensing, linked to various devices used ona daily basis

App

API linkage

Family members

Nursing care,healthcare service
providers, etc.

Links to family members
and other key individuals

Providing peace of mind in all aspects of daily life
© 2023 SECOM CO., LTD. All rights reserved.

-7-Security Services: Integrate Robust Security with an Open Cloud
Enhance lineup of linkable open cloud services based on System Security AZ for commercial customers

Open cloud services

Robust security services
Control system

Development of apps based on
security system information

Security guards• Remote management tools that reduce staffing and labor
requirements• Portal services that centralize status management for multiple sites

Linkage to third-party services
through collaboration with partners
Security cameras and access control• Access control services, ID management services• HR technology services (employee attendance management, etc.)

Infrastructure centered on System Security AZ• Integration and centralization of on-line monitoring, facility access control, image recording andother functions• Continuous evolution through linkage with multiple devices and the application of AI, among others
Evolving beyond security services to become a provider of business infrastructures that
support customers’ operations© 2023 SECOM CO., LTD. All rights reserved.

-8-Security Services: Create SaaS Models for the Provision of Merchandise
Transform the provision of merchandise for on-line security systems into a service-based business suited tothe cloud era

Video Surveillance as a Service (VSaaS)

Access Control as a Service (ACaaS)• Provision of cloud-based services for
managing surveillance camera images
and detection events• Centralized management of access•authorization, as well as of entry/exit
record and image storage, in the cloud

AI-based event
detection
Visitors

Access authorization

IoT as a Service (IoTaaS)
Provision of a communications
environment and user interface as one
set to connect IoT terminals installed invarious equipment and facilities

Entry and exit records
SurveillancecamerasCongestion

Air conditioning
equipment

Images of people entering and exiting

Utilizing SECOM know-how to offer services that are safe, advanced and easy to use

Provision of interactive services that make useof PCs, smartphones and other devices© 2023 SECOM CO., LTD. All rights reserved.

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Security Services: Promote DX in the Security Market
Promote Security DX with the objective of extending SECOM systems and know-how to partners who share
our philosophy
Event security

Static guards

Facilitymanagement

Transport ofvaluables

Assisting partners that share our philosophy to drive digital transformation
Security DX Supported by SECOM

Provided via an open framework
SECOM security systems that employ the latest technologies

Wearable devices
Personal mobility devices

Information processing

Robotics

Data centers
Video management systems

Driving improvements in the quality of safety and peace of mind for communities and society as a whole© 2023 SECOM CO., LTD. All rights reserved.

-10-Strengthen Overseas Operations
Strive to boost revenue generated overseas to 10% of the consolidated total by strengthening operations inpromising markets through both organic growth and M&As
◼ Add depth to existing
businesses• Establish a globally
recognized brand• Broaden operating
foundation in Asia, Oceania
and elsewhere

Existing overseas
markets

New overseas
markets

Existing
businesses

Existing
businesses• Boost hospital operations inIndia, including by
establishing new facilities◼ Expand into newbusinesses• Leverage new technologies
and solutions to enhanceservices and systems• Seek opportunities forcollaboration with othercompanies and M&As

© 2023 SECOM CO., LTD. All rights reserved.

Existing overseas
markets

New overseas
markets

New businesses

New businesses

Existing overseas
markets

New overseas
markets

New businesses• Expand security services
that employ the latest
technologies

Existing businesses◼ Expand into new markets• Enter markets in countries
and territories with highgrowth potential• Seek opportunities forcollaboration with othercompanies and M&As

◼ Create new growth models• Implement M&As toestablish new foundations
for growth• Explore new possibilities,
focusing on start-ups in theareas of security-related
SaaS and healthtechnology-11-

Strengthen Overseas Operations: Add Depth to Existing BusinessesExtend services to a broader range of customers by building on image technologies/AI and integrating apps
Overseas security services (before)

Flexible provision of a wide selection of services that meet local needs✓ Japan-standard specs✓ Provide services tailored to specific countries/regions✓ Closed systems✓ Open environment✓ Mainly target Japanese companies✓ Target local companies and expand local customer base

Provision of services using
integrated apps

Deploy images and AI toreduce labor requirements
and improve reliability

Electronic security
services with image
monitoring

Interactive
communications・ Ability to view images
using an app
・ Image confirmation bySECOM
・ Image-based monitoring
services・ AI chatbot-based customer
service・ Comprehending customer
satisfaction levels;
obtaining feedback

Add-on services(IoT/wellness)＋・ Use of wearable cameras

・ Monitoring of facilities
・ Monitoring of individuals

Introducing the latest technologies from the ASEAN Innovation Center, as well as collaborating with local
partners and seeking beneficial M&As, to facilitate the selection and continuous updating of service platforms
that respond to customer needs in different countries and territories© 2023 SECOM CO., LTD. All rights reserved.

-12-

Reinforce BPO and ICT Businesses
Build business infrastructures centered on information security technologies and around-the-clock services
that support customers’ operations, ensuring safety, peace of mind, comfort and convenience
Service provision framework:

Data centers and networks• Construction of new data centers inTokyo and Osaka, and expansion ofedge data center business• Further expansion ofinterconnection services that
improve the experience of cloudbased service users

SaaS solutions that support
smooth business operations• Expansion and development ofSoftware as a Service (SaaS)based services for businesses
including HR and BCP that support
operations and business continuity• Aim: Become a platformer thatserves as a hub for HR technology
services for small- and mediumsized commercial customers

BPO services that contribute to
the improvement of operating
efficiency• Expansion and development of
BPO services (contact center andback office support) that respondflexibly to changes in theoperating environment, including
evolving consumer values andneeds, a decline in the labor
force and the diversification ofwork styles

Information security technologies
and around-the-clock service
that protect customers’ business foundationand services in a manner that is safe andensures peace of mind
© 2023 SECOM CO., LTD. All rights reserved.

-13-Human Resources Strategies
Continue investing in efforts to secure and foster human resources to evolve further as a company providing
pioneering services that deliver safety and peace of mind
Qualities sought

Originality

Resilience

Internationality

Commitment to improvement

Workplace environments
Create a foundation for SECOM to evolve as a company that fosters each individual’s uniquecapabilities and helps all employees enjoy a rich and fulfilling professional and private life

Enhanced well-being
Greater diversity

Improved and expanded
capabilities

Priority strategies◼ Encourage employee engagement© 2023 SECOM CO., LTD. All rights reserved.

◼ Promote a healthy work–life balance◼ Advance diversity and inclusion-14-

Sustainability Strategies
Evolve as a company that consistently earns the trust of all stakeholders
Principal initiatives to date
Fortify SECOM’s sustainability framework

Initiatives under the SECOM Group Road Map 2027
Accelerate the integration of management and sustainability strategies

Sustainability management■ Formulated the SECOM Group Basic
Sustainability Policy■ Identified priority material themes■ Established key goal indicators (KGIs) and key
performance indicators (KPIs) based onmateriality analysis■ Manage and assess progress toward achieving KPIs andenhance activities as appropriate■ Incorporate sustainability perspectives into management
decisions and business standards

A society that leaves no one behind■ Developed the Declaration of Promoting Diversityand Inclusion■ Created the SECOM Group Human Rights Policy■ Promote organization-building centered around a diverse
labor force■ Foster human resources in a way that encourages forwardlooking perspectives■ Make services accessible to all people

Preservation of an inhabitable planet■ Formulated Carbon Zero 2045
Acquired Science Based Targets initiative (SBTi)
certification and joined Renewable Electricity
100% (RE100)■ Declared support for the Task Force on Climaterelated Financial Disclosures (TCFD)© 2023 SECOM CO., LTD. All rights reserved.

■ Accelerate the introduction of renewable energy■ Reduce the environmental impact of SECOM products andmaterials■ Reduce plastic packaging used for SECOM products-15-Operating Results Forecasts
The SECOM Group’s targets for the fiscal year ending March 31, 2028, are for consolidated revenue of atleast ¥1,250.0 billion, consolidated operating profit of between ¥160.0 billion and ¥180.0 billion, a dividend
payout ratio of around 45% and an ROE of 10%.

Targets for the fiscal year ending
March 31, 2028
Consolidated
revenue

At least ¥1,250.0 billion

Consolidated
operating profit¥160.0 billion–¥180.0 billion

Notes

Financial Strategies
Divided payoutratio

Around 45%ROE10%© 2023 SECOM CO., LTD. All rights reserved.

• Enhance shareholder returns while
maintaining a sound financial position• Invest in growth while remaining aware ofcost of capital• Conduct share buybacks in a timely
manner to achieve an ROE of 10%-16-

The forward-looking statements such as result forecasts included in this document are based on the information available to
the Company at the time of the announcement and on certain assumptions considered reasonable. Actual results may differ
materially from the forecast depending on a range of factors.

© 2023 SECOM CO., LTD. All rights reserved.

-17-