ALL SECOM: Driving Future Growth

Addressing challenges in three areas under the ALL SECOM banner
Realizingl System IndaiocusStryethInsurance
Healthcare

Sup

Shortage of doctors
and nurses

SECOMALL

Need for nursing
and other care services

Security, peace of mind,
comfort and convenience

Lifestyle support

er-aged society
Facility
management

Typhoons

Earthquakes

Fires

TsunamiEnergyconservation

Energyshortages

P/
BC n/
ssoe
rednatiDisaster prepa preservl
Environmenta

Livingenvironments

Population
declineInformation leaks

Sudden illness

Missing children
TheftBurglaries

Security services

Guided by the ALL SECOM concept, we are working to make life more comfortable andconvenient and to deliver security and peace of mind by responding to social imperatives andhelping to resolve everyday concerns.

In response to the changing face of Japanese society, we are leveraging
our expertise in providing security services and rallying Group strengths
under the ALL SECOM banner to develop innovative services in line with
two additional key themes: super-aged society and disaster preparedness/business continuity planning (BCP)/environmental preservation.
Ø Providing comprehensive on-line security systems
Our competitive advantage in the security services businessderives from our commitment to providing comprehensive
on-line security systems, whereby we take responsibility for all
aspects, from R&D to the production and assembly, marketing,security planning, installation, around-the-clock monitoring,
emergency response services and maintenance.
We have built a unique R&D organization that enables us topromptly and accurately incorporate feedback from customers
into the development process. To facilitate around-the-clockmonitoring and emergency response services, we design systems that combine the speed and precision of security equipment—a result of, among others, the accuracy of our sensors
in detecting intrusions, fires and other irregularities—with the12SECOM Annual Report 2013

SECOM On-Line Security Systems

R&D
Emergency
response services

Intelligent Systems Laboratory
Development Center

Emergency response
personnel

Production andassembly of systems
Secom Industries Co., Ltd.

Providing reliable peace of mind

Around-the-clockmonitoring

Marketing

SECOM control center

Security planning teamInstallation
Technicians

The Management
Strategic Highlights
Special Feature
SECOM TodaySECOM control centersecurity systems in 11 countries and territories. Looking ahead,
we will step up efforts to promote recognition and broader
acceptance of our distinctive approach in markets aroundthe world.

Ø Responding to the needs of Japan’s
super-aged society

SECOM Annual Report 2013

Financial Section

The United Nations classifies a super-aged society as one inwhich more than 21% of the population is accounted for bypeople over the age of 65. In 2007, Japan became the first
country in the world to qualify for this classification.
We continue to maximize our accrued expertise to create
services that respond to needs engendered by the aging ofJapan’s population and enhance convenience and comfort anddeliver security and peace of mind. We are capitalizing on oursolid base of experience in the operation of a variety of facilities for seniors. These include residences for seniors, which canaccommodate individuals who are capable of living on theirown and those who require nursing care; nursing homes forseniors who need care from the time they move in; and dayservice centers.

Financial Review

analytical skills and prompt decision-making capabilities ofpeople. To provide swift, quality emergency response services,
we maximize the excellent judgment and accumulated knowhow of SECOM control center staff and skills of our trained
emergency response personnel, as well as our nationwide
network of more than 2,800 emergency depots, which is thelargest of any security services company in Japan. Employee
education designed to foster the capabilities of SECOM security professionals is crucial to our ability to provide high-grade
services, as is the effective management of human resources.
Our rental format is another key factor behind the competitiveness of our on-line security systems. Because we retain
ownership of security equipment, which we rent out, we areable to minimize initial costs for subscribers. The rental format
also means that we are in charge of maintenance and upkeep,
thus enabling us to guarantee the quality of our services.
Accordingly, our innovative comprehensive approach enjoys
the trust of customers across a wide range of industries.
“SECOM-style security services” is a phrase often used todescribe on-line security systems that encompass emergency
response services. We currently offer SECOM-style on-line

13ALL SECOM: Driving Future Growth

Test of low-expansion foam fire extinguishing system (Nohmi Bosai)

New offerings developed to respond to unmet needs inJapan’s super-aged society include SECOM My Doctor Plus,an emergency medical alert system for seniors that brings
together our accumulated know-how in security services andmedical services and expertise secured through a businessalliance with major nursing care services providers. SECOMMy Doctor Plus enables users to transmit emergency alerts at
any time and from anywhere, providing security and peace ofmind. As options available to SECOM Home Security subscribers, we also offer the Keeping in Touch call and Keeping inTouch visiting services for seniors, made possible by combining
our on-line security systems, medical services and SECOM
Home Service lifestyle support services to ensure peace ofmind both for seniors receiving support and for loved onesliving far away.
In the years ahead, we see significant potential in customizing our service model, developed specifically for Japan’s
super-aged society, to reflect the needs of other countries
attempting to cope with the challenges of an aging population. Guided by the ALL SECOM concept, we will continue
working to respond to evolving social imperatives by developing and providing services that make life more convenient andcomfortable and deliver security and peace of mind. Throughsuch efforts, we aim to be a company that truly makes a­difference in society.

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SECOM Annual Report 2013

Ø Enhancing disaster preparedness/BCP/
environmental preservation
The lessons of the Great East Japan Earthquake and of recentmajor typhoons have clarified the importance of expanding
the scope of our fire protection services business beyond systems aimed at minimizing the impact of fire on structures toencompass broad-based protection against all types of disasters. Going forward, we will rally the respective technologies
and expertise of subsidiaries Nohmi Bosai and Nittan. We will
also advance collaboration with the two companies with theaim of creating next-generation disaster protection systems.
In the security services business, our experiences in thewake of the Great East Japan Earthquake motivated us to augment our popular SECOM Home Security G-Custom service byadding a feature that enables subscribers to entrust important
personal information to us for storage at Secure Data Centerfacilities. In the wake of the quake, geographic information
services subsidiary Pasco Corporation analyzed image datafrom TerraSAR-X, a synthetic-aperture radar (SAR) satellite, tocreate mapping data that helped to pinpoint areas devastatedby the disaster, helping to ensure a swift, accurate assessmentof the situation on the ground and to assist initial response
efforts, thus demonstrating the value of data from commercial
satellites in disaster situations in obtaining critical information.
In addition to large-scale disasters, the globalization of­supply chains and rising concerns regarding cyber attacks
aimed at illegally obtaining confidential information from­servers have underscored the increasing diversity of risks facedby companies today. This has amplified the importance ofeffective BCP for companies of all sizes.

The Management
Strategic HighlightsØ Advancing the ALL SECOM concept to make life
more convenient and comfortable and deliver
security and peace of mind
We see enhancing our data center capabilities as crucial to
our ability to successfully market new systems and services.
The acquisition of At Tokyo—one of Japan’s leading data
center services firms—was a crucial step, but the new services
and systems we intend to offer will necessitate securing­significantly greater data center capacity and increasing ourdata collection and management efficiency. Through such
efforts, we aim to transform our data centers into comprehensive “service centers” that not only offer safe data storage but
also serve as a foundation for the provision of a broad array of
distinctively SECOM services.
Going forward, we will continue leveraging our expertisein security services and rallying Group strengths under theALL SECOM banner to develop innovative services in line with
two key themes—Japan’s super-aged society and disaster preparedness, BCP and environmental preservation—that makelife more convenient and comfortable and deliver ­security andpeace of mind.

SECOM Annual Report 2013

Financial Sectionused in reforestation and in calculating waste CO2 prevented
from entering the atmosphere thanks to carbon captureand storage (CCS), thus helping to advance environmental­protection efforts.

Financial Review

We provide an extensive range of services that protect
companies’ valuable information and systems, facilitating theswift restart of operations in the event of a major disaster.
One of our principal BCP support services is SECOM Safety
Confirmation Service, which helps confirm the safety ofemployees, assess the extent of damage to facilities andassist initial response efforts should disaster strike. This service
incorporates our accumulated experience and know-how in
the area of security services and is the largest service of its
type currently available in Japan.
A recent addition to our service portfolio is Total Support
Service of Emergency Management, which draws on thediverse strengths of our security services, fire protection
services, geographic information services, and informationand communication related and other services, to provide
all-inclusive support for BCP.
Acknowledging heightened awareness of environmental
issues, we are rallying the comprehensive technologicalcapabilities, under the ALL SECOM banner, to develop
environment-friendly systems and services.
In the security services business, we offer a number ofenvironment-friendly services. These include SECOM FX, anenergy- and labor-saving security and facility control systemdesigned for offices and shops. We also offer the SECOM Eco
Data System, which calculates and displays electric power, gas
and other energy consumed. By making energy use visible, thesystem assists the efforts of companies to reduce their energy
consumption. Dry Mist, a Nohmi Bosai system that uses sprinkler technology to lower ambient temperature, helps reduce
urban heat islands, one cause of global warming. Data fromsatellite images and aerial photography provided by Pasco is

SECOM Today

Dry Mist system

Special Feature

Secure Data Center15