SECOM REPORT

2021
Year ended March 31, 2021

ProﬁleCorporate Philosophy

SECOM was established in 1962 as Japan’s first security services provider. Since then, the Company has sought tocreate pioneering services that benefit society as a whole, in line with its mission of helping achieve a society freefrom concerns.
Today, SECOM, comprising the parent company and the companies of the SECOM Group, boasts a businessportfolio encompassing security services, fire protection services, medical services, insurance services, geospatial

Mission (Our role and raison d’être)information services, business process outsourcing and information and communications technology (BPO andWe see our mission as being to help achieve a society free from concerns.
Accordingly, throughout our history we have sought to create services and systems that
benefit society as a whole.

ICT) services, and other services. By striving to create services and systems that deliver safety and peace ofMissionmind, as well as make life more comfortable and convenient, whenever and wherever necessary, for anyone andeveryone, the Company is working to realize its Social System Industry vision, which describes a framework of
distinctive, integrated services and systems.
In this era of amplified uncertainties, to accelerate the realization of its Social System Industry vision, SECOM
has formulated the SECOM Group’s Vision for 2030. Guided by this vision, the Company is collaborating with

Vision (Our ideal view of SECOM in the future)

Visionpartners who share its philosophy to create the ANSHIN* Platform, a service infrastructure designed to provide

In 1989, we declared our commitment to the Social System Industry.
We continue to promote bold initiatives with the aim of realizing this vision.

peace of mind to people in their everyday lives, as well as to society as a whole, by resolving key social issues.
Through these and other efforts, SECOM continues working to maximize its corporate value.
SECOM has also expanded outside Japan. Currently active in 17 countries and territories, the Group extends

Values (Our shared beliefs and guiding principles)

distinctively SECOM security services, fire protection services, medical services, geospatial information services,and BPO and ICT services customized to reflect local needs and sensibilities.
*ANSHIN is Japanese for “peace of mind.”

ValuesSince our establishment, we have adhered to SECOM’s Philosophy, whichemphasizes contributing to society through our business activities. Ideas andprinciples of conduct, including this philosophy, which are shared by all
employees, guide everything we do and have nurtured a uniquely SECOM
identity that remains crucial to our ability to achieve our mission.

CONTENTSThe Social System Industry

1 Corporate Philosophy

Financial Information and References

2 Financial Highlights

57 Financial Review

Our Social System Industry vision describes a framework of innovative and integrated services and systems

4 A Message to Stakeholders

62 Consolidated Financial Statementsthat deliver safety and peace of mind, as well as make life more comfortable and convenient, whenever and

10 The Path to Value Creation

69 Other Financial Data

12 SECOM at a Glance

73 Corporate Information

14 The Value Creation Process

77 Regarding Publication of SECOM Report 2021

wherever necessary, for anyone and everyone.

SECOM’s Philosophy

16 SECOM’s Core Competitive Advantages

SECOM’s Philosophy has been passed down through generations of employees since our

17 Initiatives Aimed at Maximizing Income

establishment and continues to be the driving force behind all we do. This philosophy

18 The SECOM Group’s Vision for 2030

emphasizes a refusal to be content with the status quo and a commitment to doing

22 Special Feature
24 SECOM Today

what is appropriate. The first element expresses our determination to provide innovative
services and systems by challenging accepted norms, while the second means judging
the legitimacy of our actions by examining whether they are just, fair and beneficial not

38 Sustainability

only to SECOM but also to society as a whole. We have published SECOM’s Philosophy

40 ESG Initiatives

in the form of a handbook, which has been distributed to employees in Japan and

56 SASB Index

overseas, and continue to capitalize on training and other opportunities to share thephilosophy and advance its implementation.

SECOM REPORT 2021

1

Financial Highlights
Pursuant to the applicable Japanese law, SECOM is required to publish results in line with accounting principles generally accepted in Japan (JapaneseGAAP). Key ﬁnancial highlights calculated using Japanese GAAP are shown below for reference.

U.S. GAAPSECOM CO., LTD. and Subsidiaries

In millions of yen

In thousands of
U.S. dollars

For the years ended/as of March 31

Years ended March 31

Year ended March 31

Net sales and operating revenue
Operating income
Net income attributable to SECOM CO., LTD.
Total assets
Total SECOM CO., LTD. shareholders’ equity

Per share of common stock:
Net income attributable to SECOM CO., LTD.
Cash dividends(Interim dividend)
SECOM CO., LTD. shareholders’ equity

2021

2020

2019

2021

¥1,135,339
135,809
89,913
2,137,806
1,142,323¥1,132,632
129,627
87,1362,081,120
1,088,738¥1,087,355
123,307
89,686
1,879,710
1,044,184$10,228,279
1,223,505
810,027
19,259,516
10,291,198

In yenIn U.S. dollars¥ 410.91
160.0080.00
4,784.12$ 3.71
1.53
0.77
47.15

¥ 411.95
170.0085.00
5,233.74¥ 399.23
170.0085.00
4,988.25

Notes: 1. Yen amounts have been translated into U.S. dollars, solely for the convenience of the reader, at the approximate rate of ¥111=US$1, the rate
prevailing on the Tokyo Foreign Exchange Market on March 31, 2021.
2. Net income attributable to SECOM CO., LTD. per share of common stock is based on the average number of shares outstanding during eachperiod, less treasury stock.
3. SECOM CO., LTD. shareholders’ equity per share of common stock is based on the number of shares outstanding at the end of each period, lesstreasury stock.
4. Cash dividends per share of common stock are based on dividends approved and paid in each ﬁscal year. At the general shareholders’ meeting
held on June 25, 2021, approval was granted for a proposal to pay a year-end dividend of ¥85.00 for the year ended March 31, 2021.

Japanese GAAPSECOM CO., LTD. and Subsidiaries

In millions of yen

In thousands of
U.S. dollars

For the years ended/as of March 31

Years ended March 31

Year ended March 31

Revenue
Operating proﬁt
Ordinary proﬁt
Net income attributable to owners of the parent
Total assets
Total net assets

Per share of common stock:
Net income
Cash dividends(Interim dividend)
Net assets

2021

2020

2019

2021

¥1,035,898
136,925
138,990
74,681
1,864,179
1,229,824¥1,060,070
142,858
151,356
89,0801,815,121
1,172,494¥1,013,823
130,213
144,889
92,0091,765,105
1,125,954$ 9,332,414
1,233,559
1,252,162
672,802
16,794,405
11,079,495

In yenIn U.S. dollars¥ 421.56
165.0080.00
4,562.08$ 3.08
1.53
0.77
44.67

¥ 342.17
170.0085.00
4,958.18¥ 408.14
170.0085.00
4,742.58

Note: Cash dividends per share of common stock are based on dividends the record dates for which fall in each ﬁscal year. The consolidated dividend
payout ratio for the year ended March 31, 2021, was 49.7%.

Net income attributable to SECOM CO., LTD.

Net income attributable to owners of the parent(U.S. GAAP)(Japanese GAAP)(In billions of yen)

(In billions of yen)

100

100
96.6
91.4

80

89.7

84.1

87.1

92.0

89.9
80

84.2

87.0

89.1

77.0
60

60

40

40

20

20

0

74.7

0
2016

2017

2018

2019

2020

2021

2016

2017

2018

2019

2020

2021

Note: In the year ended March 31, 2021, net income attributable to SECOM CO., LTD., advanced ¥2.8 billion, to ¥89.9 billion, notwithstanding the negative
impact of COVID-19 in certain areas. This reﬂected an increase in operating income, which was bolstered by favorable results in the insurance
services, BPO and ICT services, and geospatial information services segments, as well as a gain on other-than-temporary impairment ofinvestment securities, compared with a loss in the previous ﬁscal year.
In the year ended March 31, 2020, net income attributable to SECOM CO., LTD., decreased ¥2.6 billion, to ¥87.1 billion, despite operating income
growth led by the ﬁre protection services segment. This was primarily due to a loss on private equity investments, compared with a gain on suchinvestments in the previous ﬁscal year, and an increase in income taxes that reﬂected a larger reversal of the valuation allowance in the preceding
period.
In the year ended March 31, 2019, net income attributable to SECOM CO., LTD., was down ¥6.9 billion, to ¥89.7 billion. Principal factors
contributing to this result included the application of a new accounting standard whereby gains or losses on equity investments are now charged toincome for the period, which resulted in an increase in loss on other-than-temporary impairment of investment securities; investments to reinforce
SECOM’s operating foundation with the aim of ensuring sustainable growth; and the impact of multiple major natural disasters on results in theinsurance services segment.

2

SECOM REPORT 2021

SECOM REPORT 2021

3

A Message to Stakeholders

Adhering to SECOM’s Philosophy and making forward-looking investments in growth to increase

Returns to shareholders

corporate value

Seeing the provision of fair returns to shareholders as a
crucial management task, we determine our consolidated
dividend payout ratio and internal reserves based on an
overall assessment of efforts to expand our businesses
and trends in our consolidated operating performance,in line with our policy of ensuring a consistent and stable

Responding to COVID-19
We would like to begin by extending our deepest sympathies
to everyone who has been affected by COVID-19. As always,
we are especially grateful to the medical professionals andothers who are working tirelessly and at considerable
danger to themselves to help curb the spread of the virus.
The socioeconomic impact of the pandemic has beensignificant worldwide. The Basic Policies for Novel
Coronavirus Disease Control, published by Japan’s
government, designates SECOM’s medical, security, building
maintenance, data center and insurance services, among
others, as social infrastructure necessary for safety andsecurity and has requested their continuation even when the
country is under a state of emergency.
Against this backdrop, we believe that the greatest
contribution we can make to society is to do our utmost to
maintain services while placing the highest priority on thesafety of customers and employees. We have established a
COVID-19 headquarters and put in place a number of criticalmeasures to prevent infection, thereby ensuring business
continuity and our ability to provide services without
interruption. We have also created the COVID-19 Risk
Response Committee, which spans our International
Business Division and overseas subsidiaries, to protect thehealth of overseas SECOM Group employees, helping prevent
infection and ensure business continuity.
Going forward, we will continue to promote stringent
measures to limit the further spread of infection and toextend services as appropriate given local conditions, while
not causing customers untoward trouble, in line with ourabiding commitment to delivering safety and peace of mind
and making life more comfortable and convenient.

Consolidated operating results
In the fiscal year ended March 31, 2021, the Japanese
economy remained challenging, owing to a significant
decline in corporate earnings attributable to COVID-19, withboth trends in the spread of the pandemic worldwide andfluctuations in global financial markets requiring constantmonitoring. With the socioeconomic activities gradually
resuming, the economy has begun to rally, despite theongoing need for strict measures to curb infections, owing to
the positive impact of various strategic measures andimprovements in overseas economies.
In this environment, we pressed forward with ongoing
efforts to realize our Social System Industry vision, in
accordance with our goal of delivering safety and peace ofmind, as well as making life more comfortable andconvenient, whenever and wherever necessary, for anyone
and everyone. To this end, we continued to concentrate on
extending high-grade services and systems optimized tomeet the increasingly diverse and sophisticated needs ofcustomers in our security services, fire protection services,
medical services, insurance services, geospatial information
services, BPO and ICT services, and real estate and other

4

SECOM REPORT 2021

services businesses. We also accelerated these efforts byclarifying initiatives to be implemented in line with the
SECOM Group Road Map 2022 with the goal of achieving the
SECOM Group’s Vision for 2030.
Notwithstanding the negative impact of COVID-19 incertain areas of the security services, fire protection
services and medical services segments, consolidated net
sales and operating revenue in the period under review
edged up 0.2%, or ¥2.7 billion, to ¥1,135.3 billion, andoperating income rose 4.8%, or ¥6.2 billion, to ¥135.8 billion.
This was due to an increase in the BPO and ICT services
segment and to net realized investment gains (including again on other-than-temporary impairment of investment
securities) in the insurance services segment, comparedwith net realized investment losses in the previous fiscal
year. Despite a loss from discontinued operations, net of tax,
net income attributable to SECOM CO., LTD., advanced 3.2%,
or ¥2.8 billion, to ¥89.9 billion, underpinned by an increasein operating income, as well as by a gain on other-thantemporary impairment of investment securities, comparedwith a loss in the preceding period.

distribution of profits. At the Ordinary General Meeting of
Shareholders on June 25, 2021, the payment of a yearend dividend of ¥85.00 per share was approved. As aconsequence, dividends for the full term—the record dates
for which fall in the period under review—amounted to¥170.00, level with the previous fiscal year.

Initiatives in the period under review and efforts to thrive in the new normal
Owing to the rampant spread of COVID-19, we faced
significant difficulties, including restrictions on businessactivities such as sales and installations, and cautious
customer attitudes toward purchases. In response to these
difficulties, we took decisive steps to enhance the stability ofbusiness continuity, adopting a sales configuration anddeveloping products that make effective use of information
technologies (IT), and building an effective telework system.
It is also important to note that the impact of thepandemic has not been entirely negative. In the security
services business, sales of surveillance cameras, access
control systems and other merchandise and revenue fromthe installation of systems decreased, but the influence on
on-line security systems and other businesses based on
fixed monthly fees was limited, despite concerns promptedby the integration and downsizing of retail premises.
Moreover, with many convenience stores and factories thatused to operate around the clock now opting to close atnight, needs for security when premises are empty haverisen, underscoring increased public awareness of safety
and security and the firmness of demand for on-line
security systems.
In our fire protection services and medical services
businesses, the impact of COVID-19 has indeed largely been
adverse, but our BPO and ICT services business has
benefited from growing demand for data center services andspecial demand for contact center services arising from theemergence of new lifestyles and the greater use of teleworkarrangements.
With a view to thriving during COVID-19, as well as in the
post-pandemic world, we continued to implement our fourongoing priority strategies, which are to expand monitoring
services, reinforce our BPO and ICT services business,
strengthen our overseas operations, and improve
productivity.

Promoting four priority strategies
Expand monitoring services
Recognizing that needs for assistance with care for seniors
vary depending on age group and have become increasingly
diverse as a consequence of changes in family structure, we
added a number of new selections to our lineup of remotemonitoring services.
Specifically, in addition to SECOM Senior Care Phone
Service, an emergency monitoring service that combines
emergency medical alert, health consultation and safety
confirmation functions, and Mago Channel with SECOM, aservice that encourages communication with parents living
apart while providing unstructured monitoring, we beganoffering SECOM Monitoring Service for Seniors, an option to
SECOM Home Security subscribers that includes a cloudbased smartphone app.
Family members living apart can check up on theirparents in a nonintrusive manner to confirm any variationsin the frequency or nature of daily activities by accessing
information captured by SECOM Home Security sensors
installed in the parents’ home. By installing an optional

dedicated sensor, subscribers can also monitor the indoor
temperature and humidity changes at their parents’ homefrom a smartphone using a dedicated application. SECOM
emergency response personnel will be sent as necessary
to check on the parents directly if, for example, the security
sensors detect no movement over a certain period of time.
Family members can also use the app to ask SECOM todispatch emergency response personnel to check in person.
We are also currently developing a new sensor that detects
changes in posture, falls and whether the individual isbreathing to enable more careful monitoring for parents
requiring closer observation.
In addition, we are working to verify the value of newservices that link SECOM Home Security with the Apple
Watch, thereby making effective use of monitoring
information, with the aim of achieving commercialization in
the fiscal year ending March 31, 2022. One of these services
stores pedometer, calorie expenditure counter, exercise time,heart rate and sleep quality data from the subscriber’s Apple
Watch, together with information on the frequency or nature

SECOM REPORT 2021

5

A Message to Stakeholdersof daily activities detected by SECOM Home Security, in thecloud*1 for analysis and viewing. In addition to enabling
family members to monitor parents living apart, these
services also assist parents in managing their own health.
Monitoring services in the future will require advanced
technological capabilities, in addition to the ability topromptly dispatch emergency response personnel whencircumstances demand. In our drive to deliver peace ofmind, as well as make life more comfortable and convenient,
we will not only promote in-house development but alsocollaborate actively with various partners who have crucial
technologies and devices under our strategy of open
innovation. Going forward, we will continue working tohelp monitor the health of families by combining advanced
technologies and human sensibilities to provide distinctively
SECOM services that ensure our ability to be there forcustomers whenever we are needed.
Reinforce BPO and ICT services businessWe continue to develop services to meet the diverse BPO
and ICT needs of our customers and to take decisive steps
in the period under review to accelerate the growth of thisbusiness. Our data center business is expanding steadily
thanks to the increased use of advanced digital technologies,
including artificial intelligence (AI), the Internet of Things(IoT) and cloud-based services, and we continue striving toenhance our capabilities in this area. Subsidiary At Tokyo
Corporation, one of Japan’s largest data center operators,
opened two data centers in the Kansai region in 2020. In
light of robust demand, the company also plans to open a
new hyperscale urban data center in 2023, while in 2025
Secom Trust System Co., Ltd., plans to open a new data
center on a site adjacent to an existing facility. Investment in
the two new data centers is expected to be in the area of ¥40
billion. We will continue to expand our data center businessin response to rapid digitalization to create a disasterresilient infrastructure.
In the area of BPO services, we saw a temporary jump indemand for contact center services, including from local
governments seeking to set up COVID-19 helpdesks.
Telework arrangements, which have become increasingly
widespread due to the pandemic, are likely to become the
new normal. With the steady decline in Japan’s labor force,a structural issue, expected to continue, the need to realize
work style reforms and improve operational efficiency
will remain common themes for companies in the years
ahead. Given such trends, we expect our BPO business tocontinue expanding steadily. Accordingly, core BPO services
company TMJ, Inc., will spearhead further efforts to combine
optimal state-of-the-art technologies with the front-line
administrative competency and ability to refine services it
has fostered to offer distinctively SECOM BPO services that

6

SECOM REPORT 2021

deliver safety and peace of mind and in so doing respond to
demand arising from the need to rely on others.
In ICT services, we are endeavoring to bolster sales of IT
products that are also effective in differentiating our on-line
security systems. We have also assigned employees withadvanced IT skills to regional headquarters to oversee sales
promotions, as well as to support and provide direction toregional sales staff, with the aim of expanding the scale of IT
product sales. Additionally, we are stepping up efforts tointegrate BPO and ICT services with security systems toboost customer convenience.
Strengthen overseas operations
With the goal of extending the reach of our security services
business in Asia, between September 2020 and February
2021, we acquired ADT Services (M) Sdn. Bhd. in Malaysia,
ADT Integrated Security Solutions Pte. Ltd. in Singapore, and
ADT Alarm Monitoring Hong Kong Ltd., all of which became
wholly owned subsidiaries. This positions us well to expand
operations in promising markets, including services for theregion’s growing wealthy and middle classes, and accelerate
efforts to extend the scope of our overseas operations.
These three companies provide cloud-based services
and systems via the Internet and will work to enhancesmartphone-linked interactive and smart home functions in
Asian markets.
With Japan’s population expected to continue shrinking
over the long term, we believe that strengthening ouroperations in promising overseas markets is essential to oursustainable growth going forward. In the PRC and Thailand,
we have launched projects aimed at cultivating businesses
and developing products suited to local needs thatincorporate advanced technologies. In early 2021, we also
embarked on focused marketing activities designed tobroaden awareness of the SECOM brand and enlarge ourcustomer bases in countries and territories where wealready have operations.
Improve productivity
We recognize higher productivity as vital to our ability toabsorb cost increases associated with additional
investments in growth in the years ahead. We are advancing
measures aimed at reinforcing in-house IT systems to boost
the productivity of individual employees so that we arepositioned to handle even a significant surge in work volume
resulting from higher subscriber numbers and the
expansion of services with current staffing levels.
In the fiscal year ended March 31, 2021, we sought tooptimize regional sites by merging SECOM control centersand shifting the sales and administrative functions ofsmaller offices to larger offices. Additionally, we reorganizedsales and operational departments to clarify their roles,

expedite decision making and eliminate waste with theobjective of breaking down organizational silos. We willcontinue working as one to further improve productivity,
guided by the concept of refusing to be content with thestatus quo,*2 a key element of SECOM’s Philosophy.

*1 In addition to information from SECOM sensors, information from devices
in the home manufactured by other companies can be stored in the cloudand used to enhance monitoring of daily activities and health.
*2 The concept of refusing to be content with the status quo expresses ourdetermination to offer innovative services and systems by challenging
outdated beliefs and accepted norms.

Transformation of the security services business
COVID-19 has brought far-reaching, fundamental changes tosociety, including business practices, consumer behavior
and work styles. With many of these changes likely toremain even after the pandemic has eased, our future
depends on responding effectively to survive and thrive inwhat is emerging as the new normal. At the same time, wemust also continue to address challenges associated with asuper-aged society and a declining labor force. We are
excited at the potential for such socioenvironmental changes
to stimulate new needs and create promising business
opportunities.
New needs include those for enhanced troubleshooting
and security as a result of reduced staff numbers or a shift
to an unattended format for retail facilities, as well as thosefor personnel management–related systems compatible
with telework and other work style reforms, information
security and document digitalization. With people spending
more time at home and making frequent use of delivery
services, we are also seeing increased needs for safe andsecure home environments, monitoring services that help
protect elderly parents and other family members, andremote healthcare. Acknowledging that we have a
responsibility to advance social change in this new era, weare striving to develop and offer services that accurately
address these and other emerging needs.
The security services business is expected to enter aperiod of fundamental transformation. Factors behind thisinclude the spread of AI, the IoT and 5G mobile
communications technologies, and rapid advances in thearea of sensing technologies,*1 which are forecast to support
the development of IoT services that respond to various
social imperatives. The linking of these to security services
will greatly expand the scope of services available tocustomers.
We also anticipate the realization of services thatleverage data science to extract information of value fromthat captured by sensors installed at subscribers’ premises.
In the security services industry of the future, we believethat the key to growth will be our ability to create a service
framework based on a new concept that involves the use of
these technologies.
During the investment phase of the SECOM Group Road
Map 2022, we promoted investments to reinforce ourbusiness infrastructure and secure individuals with the highlevel skills necessary to work in IT in preparation for thedigital era.
We currently have more than 2.4 million on-line security
subscribers in Japan. By offering a software as a service(SaaS)*2 on-demand service model, we will make it possible
for subscribers to access highly convenient IoT and othernew services that leverage new technologies. To this end,
we must install security equipment with functions andperformance features compatible with these services at
subscribers’ premises.
Based on the belief that the services we provide tosociety should both be revolutionary and utilize
sophisticated technologies, we will systematically replacesubscribers’ existing security equipment with new models
compatible with the new technologies of today and thefuture. This combination of state-of-the-art equipment with
our around-the-clock monitoring services will continue toensure our ability to offer new value by extending reliable
services that improve convenience. In addition to enhancing
customer convenience, these sophisticated technologies will
also boost the efficiency of our operations.
We see this period of transformation as an importantbusiness opportunity. To ensure sustainable growth over thelong term, we are working to build next-generation businessmodels—an effort spearheaded by the Business Design
Laboratory, which was established in-house in August
2020—and advancing measures to sharpen our competitiveedge under the banner of “SECOM DX.”
*1 Sensing technologies are technologies that measure and quantify
information acquired by sensors.
*2 SaaS is a subscription-based delivery model whereby services areaccessed via the Internet.

Promoting ESG initiatives
Since our establishment, we have sought to fulfill our
responsibility to society through our business activities,
acknowledging the importance of sustainability for ourselves

and for society. The key to our ability to deliver safety andpeace of mind, as well as make life more comfortable andconvenient, is the human resources who are responsible

SECOM REPORT 2021

7

A Message to Stakeholders

for providing our services. With our operating environment
expected to undergo major changes in the years ahead,owing to the emergence of a new normal in the wake of
COVID-19 and the coming period of transformation for the
security services business, securing and training people
who excel in terms of adaptability to change, ability to create
value and desire to contribute to society, will become anincreasingly critical management challenge.
To attract human resources who are a good fit for
SECOM and capable of performing at a high level over thelong term, it is vital that we offer attractive employment
conditions in terms of pay scale, work-life balance andemployee welfare, and maintain a high degree of employee
motivation by striving constantly to bolster job satisfaction.
We thus strive to guarantee safe working environments,
create employee-friendly workplaces, offer training to foster
employees with superior ethical standards and skills, andadvance diversity and inclusion.
Further, we endeavor to encourage a managerial
mindset, that is, to nurture individuals who understand our
corporate philosophy, including our mission, and are capableof independent judgment and action. To this end, senior
management is leading efforts to maximize employees’capabilities and inspire them to fulfill their potential bycreating a virtuous circle rooted in job satisfaction andstepping up implementation of our Tri-ion initiative, whichseeks to ensure that SECOM’s Philosophy fully penetrates
every aspect of our operations.
Rigorous corporate governance is indispensable to ourability to earn public trust and fully leverage our competitiveedge. Our core business is security services. As such, we
appreciate the importance of each and every employee
discharging his or her duties in good faith and in keepingwith the spirit of related laws. For this reason, we viewcompliance as an integral component of our day-to-day
operations. All employees are required to act in accordancewith the SECOM Group Code of Employee Conduct and the
Behavioral Guidelines Based on SECOM’s Philosophy and toensure compliance. Preserving confidentiality is also criticalto the provision of security services. We have established an
information security policy and rules for the handling ofvarious types of information that are applicable to all SECOM
employees and promote the scrupulous protection of dataand information. We also work actively to reinforce ourcorporate governance system, recognizing that a robust
configuration is crucial for related measures to have teeth.
We are also taking steps to enhance the diversity andeffectiveness of our Board of Directors, including appointing
a female outside director in June 2020.
Recent years have seen natural disasters generally
associated with climate change, including large-scale forest
fires and heavy rain incidents, occurring with greater

8

SECOM REPORT 2021

frequency around the world. Seeing our mission as being tohelp achieve a society free from concerns, we strive to be acompany that is capable of providing enduring peace ofmind while at the same time fulfilling our responsibilities asa member of society and reducing the impact of ouroperations on the environment.
With the belief that protecting the environment isessential to our ability to deliver security and support
comfortable lifestyles, we incorporate environmental
conservation into all aspects of our business activities.
For example, we provide on-line security system equipment
to security services subscribers mainly on a rental basis.
We are thus able to collect all installed equipment after use,
recycle what can be repaired and reused, and appropriately
dispose of what cannot, a zero–resource waste businessmodel that dates back half a century. In our security
services business, which uses a significant number ofservice vehicles, we have largely completed the planned
introduction of fuel-efficient vehicles. We plan to upgrade toelectrified vehicles with an even lower environmental impact
in the years ahead, and have already replaced a number ofvehicles with hydrogen-powered models. In our data center
services business, which uses a considerable amount ofelectric power, our efforts have earned designation by the
Tokyo prefectural government as demonstrating particular
excellence in the implementation of initiatives to counter
global warming.
Seeking to further our goal of helping achievesustainability for society, in July 2019, we declared our
support for the Task Force on Climate-related Financial
Disclosures (TCFD), pledging to disclose related informationin line with TCFD recommendations. In July 2021, we
announced our intent to achieve carbon neutrality by 2045
and set a target for reducing CO2 emissions by 45% from thefiscal year ended March 31, 2019, by the fiscal year ending
March 31, 2031. These targets earned certification as
science-based targets (SBTs) from the Science Based
Targets initiative. In line with these targets, we also joined
Renewable Electricity 100% (RE100), a global renewableenergy initiative, with the aim of shifting entirely toelectricity generated using renewable energy by 2045.
Our day-to-day business activities, into which weincorporate consideration for the expansion of business
opportunities and the reduction of business risks, arestructured to both nurture continued growth and resolve
environmental, social and governance (ESG)-related issues.
We believe that increasing corporate value by expanding ourbusiness activities directly improves our ability to address
ESG issues, which in turn enables us to contribute to theachievement of the United Nations’ Sustainable
Development Goals (SDGs). These achievements haveearned solid marks, as evidenced by our continued inclusion

as a constituent of all four ESG investment indices* forJapanese equities used by Japan’s Government Pension
Fund (GPIF). Going forward, we will continue working toenhance our provision of ESG- and sustainability-related
information to our diverse stakeholders.

* The four indices used by the GPIF are the FTSE Blossom Japan Index, the
MSCI Japan ESG Select Leaders Index, the MSCI Japan Empowering Women
Index (WIN) and the S&P/JPX Carbon Efficient Index.

Ensuring unwavering, sustainable growth
We continue to operate in an environment characterized bysignificant upheaval and unprecedented uncertainty, caused
by factors such as a declining labor force, climate change
and the impact of COVID-19. At the same time, we expectthat the rapid digitalization of society, underpinned by theevolution of advanced AI, IoT and 5G mobile communications
technologies, and by the rising prevalence of cloud-based
services, will drive demand for services utilizing
smartphones and wearable mobile equipment.
Against this backdrop, we have begun to offer cloudbased and interactive services that accumulate, analyze andvisualize information detected by sensors installed at thepremises of security service subscribers. The rapid evolutionof sensing technologies is expected to fundamentallytransform the security services business in the years ahead.
As a consequence, our security services in the future mustnecessarily evolve into sophisticated high-grade services
that combine advanced digital technologies and human
support. For this reason, we must evolve as a “tech”
company with capabilities in such areas as health tech.
SECOM Group companies will also actively introduce newtechnologies to optimize our performance and ensure
unwavering growth. With Japan’s labor force expected
to continue shrinking, we also recognize that further
globalization is essential to the sustainability of our

growth. We have taken the first steps toward a full-scale
reinforcement of our overseas operations. We are confident
that measures implemented will yield positive results in thenear future.
Achieving the goals we have set for ourselves will
require continued and decisive investment in growth. We
will explore priorities while continuing to promote key
investments, including in M&As. Given the dramatic changes
in our operating environment and the increasingly uncertain
outlook, securing sufficient capital assets has also taken
on greater importance. With the aim of enhancing returns
to shareholders, we will continue working to improve
corporate value and maintain a stable dividend payout ratio
of between 40% and 45%, as set forth in the SECOM Group
Road Map 2022.
The Olympic and Paralympic Games Tokyo 2020 will beheld this year in the shadow of COVID-19. It is our hope thatthe efforts and commitments of the athletes will bringinspiration and joy to people around the world. We arecommitted to playing our part in ensuring the secure andsuccessful staging of the games. In this as well as our otherendeavors, we look forward to the ongoing support andguidance of our many stakeholders.
July 15, 2021

Makoto Iida

Yasuo Nakayama

Ichiro Ozeki

Founder

Chairman and
Representative Director

President andRepresentative Director

SECOM REPORT 2021

9

The Path to Value Creation
Established as Japan’s ﬁrst security services company, SECOM has pioneered the creation of services
that deliver safety and peace of mind. Going forward, we will continue to develop and provide innovative
services and systems that accelerate the realization of our Social System Industry vision.

Security services

Insurance services

Overseas security services

Geospatial information services

Fire protection services

BPO and ICT services

Medical services

Security service industry
1962
Established as Nihon Keibi Hosho Co., Ltd. (namewas later changed to SECOM CO., LTD.)

Safety (“ANZEN”) industry

1974
Lists on the Second Section of the Tokyo
Stock Exchange

1981
Introduces My Alarm (currently SECOM Home
Security), Japan’s ﬁrst home security system

1992
Establishes presence in the PRC, Singapore
and Australia

1978
Moves up to the First Section of the Tokyo
Stock Exchange

1994
Establishes presence in Indonesia
1994
Begins offering Japan’s ﬁrst remote image
diagnosis support service
1996
Commences management of residences forseniors

1981
Establishes joint venture Korea Security
System Co., Ltd. (currently SI Corporation) in
the Republic of Korea (ROK)1983
Changes name from Nihon Keibi Hosho Co., Ltd.
to SECOM CO., LTD.
1985
Launches information security services

1966
Develops SP Alarm, Japan’s ﬁrst on-line
security system

1998
Launches certiﬁcation authority business

1989
Declares 1989 the ﬁrst year of the Social System
Industry vision

1991–

Establishes joint venture Taiwan Secom Co.,
Ltd., in Taiwan, its ﬁrst overseas market

Begins providing visiting nurse
services

Forms business alliance with Nohmi
Bosai Kogyo Co., Ltd. (currently
Nohmi Bosai Ltd.), Japan’s top
provider of ﬁre protection services

Begins providing information andcommunications-related services

Fire protection services

2006
Acquires newly issued shares in Nohmi Bosai,
which becomes a consolidated subsidiary2012
Acquires At Tokyo Corporation, one of Japan’s
leading data center services ﬁrm

2006
Establishes presence in Vietnam

2014
Establishes presence in Myanmar

2007
Launches ground surveying services usingsynthetic aperture radar (SAR) satellite images

2014
Opens Sakra World Hospital, a general hospital,
in India

2007
Commences operation of private ﬁnanceinitiative (PFI) correctional facility

2015
Acquires Asahi Security Co., Ltd., a leading
provider of cash collection and delivery
services, which becomes a consolidated
subsidiary

2000
Establishes the Secure Data Center

2001
Launches MEDCOM, Japan’s ﬁrst unrestricted
cancer treatment policy

2017
Acquires BPO services ﬁrm TMJ, Inc.
2019
Establishes presence in Turkey
2011
Establishes presence in New Zealand

Net sales and operating revenue¥1,135.3 billion

Geospatial information services

Medical services

1983–

2004
Launches the SECOM Safety Conﬁrmation
Service2012
Acquires all outstanding shares in Nittan Co.,
Ltd., Japan’s third-largest ﬁre protection
services provider, making the company aconsolidated subsidiary

1999–

1978–

1974–

2004
Introduces the SECOM AED Package Service

2001
Develops and releases the COCO-SECOM
mobile security system

1988
Establishes presence in Thailand

Overseas security services

Security Services

1991
Establishes presence in the United Kingdom
and Malaysia

1975
Commences operation of the world’s ﬁrst
computerized security system (CSS)

1964
Provides security services at the Olympic
Village during the ﬁrst Tokyo Olympics

1962–

Social System Industry

Invests in Pasco Corporation, a leading provider of aerial surveying services

1998–

Insurance services
Invests in Toyo Fireand Marine InsuranceCo., Ltd. (currently
Secom General
Insurance Co., Ltd.)BPO and ICT services

Established as Japan’s ﬁrst
commercial security services
provider

1962

1965

1970

1975

1980

1985

1990

1995

2000

2005

2010

2015

2021

Note: As indicated in the legend, this graph shows net sales and operating revenue for each ﬁscal year at the time of announcement. Figures have not been readjusted.
However, data for periods up to and including the ﬁscal year ended November 30, 1977, is nonconsolidated revenue for SECOM CO., LTD., calculated using
Japanese GAAP, while from the ﬁscal year ended November 30, 1978 through the ﬁscal year ended March 31, 2004, the Company reported “revenue and otherincome.” Owing to a change in the Company’s settlement date, the ﬁscal year ended March 31, 1990, was a transitional four-month period.

10

SECOM REPORT 2021

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11

SECOM at a Glance

Segment

Principal operations

Net Sales and Operating Revenue¥1,135.3 billion

Security Services(Breakdown is based on consolidated net sales and operating revenue(excluding intersegment transactions) for the ﬁscal year ended March 31, 2021.)

On-line security
systems
Static guard services
Armored car services
Merchandise and otherPrincipal Group
companies*1

Competitive advantages• Integrated approach to providing on-line security systems• Solid technological foundation made possible by proprietary research and development configuration• Nationwide network of 2,700 emergency depots, facilitating swift response in the event of an
emergency and appropriate operational control• Rental format that minimizes initial costs for subscribers and enables SECOM to take responsibility
for equipment maintenance and upkeep• Solid income foundation (attributable to stable recurring revenue-based businesses) and robust
customer base
• Extensive lineup of security merchandise, including surveillance cameras and access control systems• Overseas operations centered on the provision of on-line security systems that reflect local market
needs

SECOM CO., LTD.*2
Secom Joshinetsu
Co., Ltd.*3
Asahi Security
Co., Ltd.
Secom plc

Fire Protection Services

Fire alarm systems
Fire extinguishingsystems
Maintenance services• Two Group companies with the largest and third-largest shares of the Japanese fire protection
market• Comprehensive lineup of services that respond to a broad range of customer needs• Integrated service configuration encompassing R&D and planning, equipment design and production,
installation and maintenance• Stable demand for equipment that complies with Japan’s Fire Service Act• Ability to extend renovation proposals that draw on a wealth of experience• Expertise in fire extinguishing systems for tunnels and other large-scale structures

Medical Services

Home medical services
Operation of residences
for seniors
Medical services thatleverage ICT
Sales of medical
equipment andpharmaceuticals
Support for affiliatedmedical institutions• Conviction that protecting health and life is the ultimate expression of the SECOM commitment todelivering safety and peace of mind
• Experience and extensive know-how in the provision of diverse medical services• Strong collaboration with local communities aimed at realizing effective comprehensive community
healthcare systems• ICT-based services that leverage expertise accumulated in the provision of medical services andSECOM’s management resources

Secom Medical
System Co., Ltd.

Insurance Services

Fire insurance policies
Automobile insurance
policies
Cancer treatment
policies• Belief in the need for both security services, which are preventative by nature, and non-life insurance,
which looks after people in the event of misfortune• Development and provision of unique policies that take into account the risk mitigating factors of
on-line security systems• Development and provision of an automotive insurance policy that includes access to emergency
response services• Development and provision of a cancer treatment policy that features full coverage for all treatment
costs

Secom General
Insurance Co., Ltd.

Geospatial Information
Services

Services for public
sector entities
Services for private
sector entities
Services for overseas
customers• Service configuration overseen by the leading company in Japan’s aerial surveying and geographic
information system (GIS) markets• Ability to provide geospatial information based on geographic data collected by commercial satellites,
aircraft, drones, vehicles and ships• Technological capabilities and expertise in the integration, processing and analysis of geographic andrelated data to provide geospatial information• Active efforts to cultivate new geospatial information services

Pasco
Corporation*2

BPO and ICT Services

Data center services
Large-scale disaster
preparedness services
Information security
services
Cloud-based services
BPO services• Highly secure facilities and equipment and tailored support, as well as data center facilities boasting
excellent connectivity that are among Japan’s largest• One of Japan’s leading disaster management support services• Seamless information security services encompassing the formulation of strategies, monitoring,
implementation of countermeasures and restoration• ICT services that reflect technological prowess, operational capabilities and know-how that facilitates
the construction and operation of network systems that leverage extensive experience in theprovision of security services• Provision of high-grade contact center and other BPO services that deliver safety and peace of mind

Construction andinstallation services
Real estate leasing
Home services• Provision of integrated services, from the design and installation of air conditioning, plumbing andelectrical systems to building maintenance.
• Extensive maintenance and management services for leased buildings, primarily in Tokyo.
• Provision of lifestyle support services that deliver safety and security and make life more comfortable
and convenientNohmi Bosai Ltd.*2
Nittan Co., Ltd.

49.6%

67.3%

Operating income¥135.8 billion(Breakdown is based on
total operating income forseven segments, prior toadjustment for corporate
expenses and eliminations(¥152.4 billion).)

12.4%

8.6%
6.1%
2.6%

8.9%

16.1%

2.9%
3.6%

5.1%
4.7%
9.7%

2.4%

Secom Trust
Systems Co., Ltd.
At Tokyo
Corporation
TMJ, Inc.

Security Services
Fire Protection Services
Medical Services
Insurance Services
Geospatial Information Services

Real Estate andOther Services*4

BPO and ICT Services
Real Estate and Other Service*1 For more information, please see pages 73–76. *2 Listed on the First Section of the Tokyo Stock Exchange *3 Listed on the Second Section of the Tokyo Stock Exchange*4 Owing to the transfer of all issued shares in Secom Home Life Co., Ltd., which spearheaded the Real Estate and Other Services business, as of December 22, 2020,
the company was excluded from the scope of consolidation.

12

SECOM REPORT 2021

SECOM REPORT 2021

13

The Value Creation Process
In addition to promoting business reforms through SECOM Digital Transformation (DX), we remaincommitted to providing enduring peace of mind by keeping abreast or where possible ahead of the times.
By reinforcing our relationship with society and addressing increasingly diverse social imperatives and
ESG-related issues, we continue working to maximize our corporate value and grow together with society.

Megatrends continue todrive the evolution ofsocial imperatives
Megatrends

Business model based on the resolution of issues
SECOM Group Road Map 2022
Priority
strategies

The SECOM Group’s Vision for 2030

Expand monitoring services
Reinforce BPO and ICT services business
Strengthen overseas operations
Improve productivity

Demographic change
Technological evolution
Increasingly severe
environmental issues

Strategies for creating

Help achievea society free fromconcerns

the ANSHIN Platform
Enhanced value
Connection

Business areas

MissionCollaboration
Security
services

Shift of global economic
center/urbanization

Other
services(Growth of Asian economies)

BPO and ICT
services

Fire
protection
servicess

ESG
initiatives

Geospatial
information
services

Social imperatives

ALL SECOM

VisionResolution of social issues
Medicalservices

Resolution of ESG-related issues
Insuranceservices

Reform of businesses through SECOM DX

Realize the Social
System Industry

Management foundation and strengths

Crimes/accidents

Cyber crimes

14

SECOM REPORT 2021

Illness/aging

Naturaldisasters

Human Resources

Organization

Technologies

Performance

Knowledge

A corporate philosophy
shared by all employees
64,119 Group
employees*1

An integrated portfoliothat marshals diverse
businesses
182 Group companies
in six business areas*2
Operations in 17
countries and territories
overseas

Business model thatfuses people andtechnologies
Approximately 2,700
emergency depots in
Japan
Around 60,000,000
security sensors
installed at subscribers’premises

Close ties with society
and a strong track record
More than 3,510,000
security service
subscribers
Over 7,500,000
SECOM Safety
Conﬁrmation Service
users

Know-how cultivated inJapan
Deployment overseas ofinitiatives developed inJapan, a front runner inaddressing challenges
associated with a superaged society and natural
disasters

ValuesContributing to thesuccess of the SDGs
*1 Employees of SECOM Group
companies (excluding variableinterest entities), as of March
31, 2021*2 The parent company,
consolidated subsidiaries andequity-method companies, asof March 31, 2021

A uniquely SECOM identity(Philosophy, code of conduct, organizational culture)

SECOM REPORT 2021

15

SECOM’s Core Competitive Advantages

Initiatives Aimed at Maximizing Income

We continue to leverage three competitive advantages—a powerful brand, a recurring revenue–based

Priority issues

business model, and Group strengths—to respond to the expectations of both individual and corporate
customers, as well as to ensure sustainable growth.

Technological advances

Declining labor force

A powerful brandof society’s evolving needs by providing—and promoting

contributed to the rise of the SECOM brand. Recognition of

unceasing efforts to improve and evolve—on-line security

SECOM as the leader of this country’s security services

and other services and systems. At present, we continue toindustry also positions us well to secure and foster talented

enjoy the leading share of Japan’s market for on-line

human resources and maintain an edge over the competition.

Expansion andevolution of services

Promotion of efforts
to reduce labor
requirements

Priority strategies

security systems. Our ability to resolve customers’

Expansion of monitoring services
Amplify lineup of services that resolve diverse concerns
Drive evolution of monitoring services through use of advanced

A recurring revenue–based business model
We are engaged primarily in recurring revenue–based

Variable and Fixed Costs for On-Line Security Systems

Reinforcement of BPO and ICT services

businesses. In addition to securing new contracts, we

Variable costs

personnel and control center staff to sales, technology, and1administrative personnel—work together to increasecustomer satisfaction by providing services that exceed oursubscribers’ expectations. We will continue to invest cash
generated by recurring revenue–based businesses asnecessary to accommodate new contracts, as well as toreinvest in growth to further bolster our competitive edge
and ensure sustainable growth, enhancing our ability todeliver seamless safety and peace of mind.

Enlarge data centers
Enhance and expand the sale of services that capitalize on
optimal state-of-the art technologies
Leverage data science to create new services

Security equipment
is provided on arental basis(SECOM assets)

Subscriber

leave contracts in place. In our core on-line security systems
business, all employees—from emergency response

P27–P28

technologies and collaboration with other companies

endeavor to ensure that existing customers are content toAlert using
telecommunications
circuits

costs

P36–P37

Strengthening of overseas operations
Develop services tailored to local markets

3
Dispatch SECOM
emergency response
personnel
SECOM
Emergency Depot(Approximately 2,700
Fixed
across Japan)

P28–P29

Accelerate growth through M&As

2

Improvement ofskills andcapabilities
Increase inmotivation anddiscipline

SECOM
Control Center(Major locations
across Japan)

Improvement of productivity
Ensure meticulous cost awareness
Review business processes

Alert SECOM
emergency
response
personnel

Upgrade administrative IT systems

P21

Efforts to secure human resources with advanced and specialized expertiseapprehensions has earned us a reputation for reliability and

Improvement of
performance
Increase in efficiency

Tri-ion Initiative, employee job satisfaction surveys,
application of robotic process automation (RPA)* to operations and others

Since our establishment, we have consistently kept abreast

Growth ofcustomer base
Increase inopportunities forcustomers to use
services

Maximization

Group strengths
With the aim of realizing our Social System Industry vision,

services, BPO and ICT services, and other services. In

as well as to boost per-customer income, we continue

addition to expanding offerings and streamlining sales

working to address concerns through a business portfolio

activities in each business, we will further fortify

encompassing security services, fire protection services,collaboration across the Group, as well as invest in M&As

medical services, insurance services, geospatial information

with the goal of further reinforcing Group strengths.

Per-customer
incomeNumber ofcustomers

Continuationof contracts

Provision of services that exceed customers’ expectations
Increase in value provided to customers

Increase in productivity

Continuous expansion of income
Reinvestment in growth
Improvement of capital efficiency*RPA is a form of business process automation technology whereby software robots (bots) perform tasks previously performed by humans, including operating
computers.

16

SECOM REPORT 2021

SECOM REPORT 2021

17

The SECOM Group’s Vision for 2030

Operating in an environment characterized by significant upheaval, dramatic change, andM’s relationships with customers and society
ng SECO
i
c
r
o
f
rein
ther
Fur

rising uncertainty, we are proceeding with initiatives aimed at realizing the SECOM Group’s
Vision for 2030 and the SECOM Group Road Map 2022
Conceptual framework of the ANSHIN Platform

For both companies and individuals, the occurrence ofGuided by the SECOM Group’s Vision for 2030, formulated in

an unanticipated crime or disaster can interrupt daily

May 2017, we are working to create the ANSHIN Platform, arhythms. For companies, productivity can fall sharply.

service infrastructure through which we strive to provide

Moreover, the greater the damage is, the longer it takes toservices that deliver seamless peace of mind for anyone andrecover. Society faces significant risks associated witheveryone whenever and wherever necessary.

crimes, accidents, cyber crimes, natural disasters, illnesses
and aging. In addition to recognizing the importance ofAnchored in the relationship of trust that we haveroutine advance preparation, we provide comprehensive

peace of mind to people in their everyday lives, as well as toservices designed to address potential risks by helping

society as a whole through collaboration with partners incustomers accurately grasp conditions, minimize impact andindustry, government and academia who share our mission

achieve restoration. These four approaches, which compriseto help achieve a society free from concerns and who havewhat we call the SECOM ANSHIN Flow, enable us to provide

diverse technologies and expertise.

seamless peace of mind.

Crecultivated with society, the ANSHIN Platform seeks to provide

Tha ANSHIN Platform Service Infrastructure<Value>Ineverydaylife

Life/health/assets/information

AI, IoT and Big Data

Advancepreparation

orm
N Platf
NSHI
A
e
h
of t
ion
t
a

ALL SECOM

Collaboration

Strategies for creating the ANSHIN Platform
The SECOM ANSHIN Flow

Safety andpeace of mind

Enhanced value

Connection

In
Grasp
the event of
the situation
an emergency

In
Minimizethe event ofdamagean emergency

RestoreAfteran emergency operations

Operations/emergency response services

To create the ANSHIN Platform, we are currently promoting

Targeting sustainable growth: Devising the SECOM
Group Road Map 2022

initiatives in line with four core strategies. The “ALL SECOM”

In May 2018, we introduced the SECOM Group Road Map

strategy focuses on rallying SECOM Group strengths to2022, devised using backcasting,* to clarify the challenges

maximize synergies. Through our “Collaboration” strategy

we must address to achieve the SECOM Group’s Vision for

we are endeavoring to promote open innovation and create

2030. In the road map, we have positioned responses to

new value by integrating the business ideas and technologies

technological advances and a declining labor force—both ofof various partners who share our mission. Our “Connection”

which become threats for both companies and society instrategy emphasizes leveraging Big Data analysis, which

general—as priority issues. We believe that evolving needs

makes use of advanced information technologies, to respondfor solutions to these issues will lead to major businessto latent needs and strengthen our relationships with

opportunities that will allow us to contribute to thecustomers, while our “Enhanced value” strategy revolves

improvement of social productivity.

around addressing everyday concerns by adding greater*Backcasting is a planning method that starts with envisioning a desirable
future and working backward from there to identify steps necessary to attainthat future.

Real-world

Cyber crimes
Natural disasters

Risks
ks mayoccur
simultaneously
ltaneously

Rather than stand-alone services, we strive toprovide integrated packages that deliver seamless safety andpeace of mind and provide added value that makes life
more comfortable and convenient

Illnesses/aging<Added value>

Comfort andconvenienceIneverydaylife

Need to improve efficiency

Extensive coverage

Diverse risks

Crimes andaccidents

value to services that make life more comfortable andEveryday concerns

Need to reduce costs

convenient.
Need to rely on others

Issues to be addressed

18

SECOM REPORT 2021

SECOM REPORT 2021

19

The SECOM Group’s Vision for 2030

Technological advances have brought an increase in the

The challenge of service innovation

Owing to a declining labor force, companies face growing

addition, we are actively allocating funds to efforts to

Our fundamental commitment is to offer services thatvariety of connected devices. This is driving a variety ofpressure to outsource noncore functions, which enables themdevelop innovative services and products that respond to

anticipate what is needed to ensure sustainability for society,profound changes, including the expanded use of drones

to concentrate on core businesses. With the rising prevalenceneeds engendered by technological advances and arather than simply providing services that will sell in any

and robots, the increasing prevalence of unattendedof families in which both parents work outside the home, wedeclining labor force, as well as to replace existing

market. This is why people and technology will always beretail facilities and cashless transactions, and the rising

are also seeing an increase in demand related to the care ofsubscribers’ security equipment with new models

given top priority. Looking ahead, we will continue working

popularity of smart homes. Such changes are expectedchildren and seniors. In response to expanding demandcompatible with new technologies.

tirelessly to enhance our ability to make effective use of

to push up demand related to the need for security in a

related to the need to rely on others, we will continue working

Our investments to enhance human resources

these intangible assets, as well as to promote service

connected society, which involves the fusion of physical andto extend distinctive services that deliver safety and peace ofemphasize the reinforcement of critical capabilities. In

innovation that helps create new value.

cyber security.

mind and make life more comfortable and convenient.

particular, we are stepping up efforts to attract IT specialists

The spread of COVID-19 has brought fundamental

and individuals with global business skills. In addition, we

SECOM Group Road Map 2022

changes, including those related to the advance of digitalization

are investing to ensure employees can fulfill their potential,

Targets for the fiscal year ending March 31, 2023 (Japanese GAAP) (Provided for reference only)

and the use of ICT. We will continue to drive efforts to respondincluding in the creation of positive working environments

to evolving demand in diverse areas related to the pandemic,

and efforts to enhance various training programs, to bolster

as well to help resolve emerging social issues.

job satisfaction.

Investments in growth and DX
Recognizing that responding to demand arising from an

Achieving the goals of the SECOM Group
Road Map 2022

increasingly connected society and from the need to rely on

In Japan, we will develop and deploy new services that build

others would require us to change ourselves significantly—aon investments to date and work to boost productivity.

process we dubbed “SECOM-Transformation”—we are

Overseas we will continue to expand the variety of services

promoting focused outlays in the areas of systems andwe offer, particularly in the ASEAN member states, as well as

human resources.

to actively enter promising new markets. We have also

Consolidated
revenue: ¥1.1 trillion

Consolidated
operating profit: ¥155.0 billion ROE: 8% plus
Investment phase

Consolidated revenue

Dividend
payment ratio:

40%—45%High-growth phase

Consolidated revenue ¥1.1 trillion
Consolidated operating profit ¥155.0 billion

Consolidated operating profit

Consolidated revenue ¥970.6 billion
Consolidated operating profit ¥135.4 billion

Investments in systems center on internal DX, theCAG

ating pR (operrofit): 3.09%

allocated ¥200 billion from equity over five years (April 1,

objective of which is to improve service quality and2018–March 31, 2023) for M&As. During this period, we willproductivity. The business systems of a security services

seek to invest in key growth businesses, namely, physicalcompany involves a variety of unique administrative

security, cyber security, BPO and ICT services, and healthcare,

processes. We are reviewing these processes, as well as

as well as in start-ups with advanced technologicalintegrating and reinforcing currently independent, business-

capabilities, both in Japan and overseas. In addition, we will

specific systems, to heighten efficiency, as well as upgradingtake active steps to respond to needs arising from COVID-19.

our administrative IT systems to facilitate comprehensive

Through these and other decisive efforts, we will strive toservices. We expect these measures to expedite thecontinue improving our operating performance, making

execution of business and the provision of services andsteady progress toward achieving the targets set forth in thesignificantly improve the efficiency of administrative

SECOM Group Road Map 2022.

procedures. We are also investing in areas that help increase
2015

2016

2017

2018

2019

2020

2021

2022

2023

the precision and efficiency of our operations, including(Actual)(Actual)(Actual)(Actual)(Actual)(Actual)(Actual)(Target)(Target)AI, the IoT and RPA, with the aim of boosting productivity. In(Years ended/ending March 31)

20

SECOM REPORT 2021

SECOM REPORT 2021

21

Special Feature

The Tri-ion Initiative

Recognizing that a vibrant, diverse team of employees is critical to our ability to provide services that deliver safety and peace

Penetration of SECOM’s Philosophyof mind, we work to foster employees who understand and share SECOM’s Philosophy. In 2018, we launched the Tri-ion
initiative, which seeks to ensure that the philosophy fully penetrates every aspect of our operations and to bolster enthusiasm
and productivity Groupwide. This initiative seeks to arouse employees’ passion, encourage them to share their excitement—a

Tri ion Initiative

Passion Emotion Motivation

powerful emotion—and bolster motivation (the “ion” in the initiative’s name is the

Employees who
personify SECOM’s
Philosophy

A stronger
corporate
cultureA wellestablishedbrand• Increased contracts• Improved assessmentby society• Optimized operations

Trust ofsociety

last three letters of “passion,” “emotion” and “motivation”). Through this initiative,
we aim to nurture employees who, by the values they exhibit, embody SECOM’s
Incomparable intangible assets

Philosophy to foster a stronger corporate culture, ensure a well-established
SECOM brand and further earn the trust of society.

Diverse human resources who share SECOM’s Philosophy and thrive in a free and open organizational culture

Specific Tri-ion initiative activities to date included holding meetings at Groupsites across Japan that brought together employees with different titles andresponsibilities to discuss their views on the organization as a whole and their

Sustainable growth

own ambitions. (Under COVID-19, such meetings were held remotely.) We also
promote efforts to better tie the day-to-day work of employees more closely to our
mission, i.e., our role and raison d’être, and to our ideal future vision for SECOM. In
addition, we solicit essays from employees describing actual episodes in theircareers that illustrate SECOM’s Philosophy and the desire of individuals to earn

Winning essay 2

the trust of customers and contribute to society. These essays are shared
Companywide and particularly outstanding submissions receive the Tri-ion Award.
Below are two of the award-winning essays.

Winning essay 1

Teamwork:
Focusing on a Single Purpose

Tri-ion meetings in the fiscal years ended
March 31, 2020 (above) and 2021 (below)

Rena Yaguchi
Staff member, SECOM Control Center,
Kinki Regional Headquarters

Communicating Passion
to Save Lives

Kazushi Makita
Deputy General Manager, Operation Group,
Adachi Office, Tokyo Regional Headquarters

I was on the train home after work one night when I

CPR just like oursuddenly heard this dull thump. When I looked up, I saw a

instructor,” said the

middle-aged man lying on the floor of the train car. As heother. Hiding mydrifted in and out of consciousness, I kept talking to him until

astonishment, I said I

we arrived at the next station. When the train pulled in, I

was happy their training

immediately jumped out and pushed the emergency button

that day had proved

and asked the station staff who ran over to call the 119

useful. They replied that

direct-dial emergency number and bring an AED. Then, withthey were glad that

SECOM training session on AED use andthe provision of CPR

One day at work, I took a call from a Mr. A, one of ouropen it would be difficult for him to get her out. Moreover, he

the help of the people around me, I carried the man onto the

SECOM offered such

emergency response personnel, who said that on his way

said, because of the narrowness of the road there was a risk

platform. By this point, he had lost consciousness and wastraining, and went on their way.

back to the emergency depot after assisting a subscriber heof a secondary accident. I told Mr. A to ask passers-by for

not breathing.

had witnessed an accident involving a car in front of him,

assistance in extracting the driver and to take thewhich had turned erroneously and fallen from the roadway

appropriate steps to prevent any further problems arising

compressions. After about 10 minutes, however, I was

installed these devices. At the start of each training session,

into a rice paddy several meters below. Knowing that I

until the fire department and police arrived. A rescue vehicle

completely exhausted and didn’t think I could continue. Just

I tell participants not that I will teach them how to use aneeded to immediately alert the fire department and theand an ambulance arrived shortly thereafter and the driverat that point, two young men came forward and offered todevice, but rather that I will show them how to save a life.

police, I asked Mr. A for the address where the accident had

was extracted safely and taken to hospital.

take over. They kept up compressions, exhorting each other

This time, a man’s life had actually been saved by two young

As an instructor, I have for many years provided training

Realizing that there was no time to wait, I started chest

in CPR and the use of AEDs to subscribers who haveto keep going. The AED arrived, and as I got ready to deploy

men who had learned this very lesson from a colleague,

identifying features in the middle of nowhere in thesite, myself at the SECOM control center and the operator atit the man regained consciousness. Just at that point, aanother instructor who had communicated passion andcountryside. I instructed Mr. A to press the button on his

the COCO-SECOM Operations Center, together with our focus

doctor who happened to be on the platform rushed over andsense of mission, and had courageously stepped up to offer

COCO-SECOM transmitter and then I called the COCO-SECOM

on a single purpose had helped save a life. It reminded me

took control of the situation until the ambulance arrived andassistance. I felt proud of SECOM, which sees being of use to

Operations Center to pinpoint his location. As a result, I wasthat my ability to make instantaneous decisions and issue

took the man to hospital.

society as a matter of course, and am honored to work forable to promptly give accurate directions to the fire

accurate instructions is crucial to protecting the lives of

I complimented the two young men on theirdepartment and police.

customers and emergency response personnel. I will

cardiopulmonary resuscitation (CPR) skills. “Actually,”

underpin my efforts and those of my colleagues at SECOM tocontinue to take pride in my job and work to further improve

explained one of them, “we had an instructor from SECOM

work with passion and a common sense of purpose, and todriver. He answered that the driver was trapped in the car

my skills with the aim of helping to ensure the safety ofcome today to train us in the use of AEDs.” “You performed

contribute to society.

and that she was conscious, but because the door would notcustomers.

occurred, but he said that it was a road with no particular

I then directed Mr. A to check on the condition of the

In this episode, the teamwork of Mr. A at the accident

such a company. This sense of pride will continue toNote: Employeesʼ job descriptions and locations are as of the time they received the Tri-ion Award.

22

SECOM REPORT 2021

SECOM REPORT 2021

23

SECOM Today

Security Services

SECOM Development Center, which capitalizes on these core

more than 2.4 million, and we continue to enjoy the leading

technologies to develop highly reliable security systems. Our

share of the market. Going forward, we will continue to rally

R&D team’s ability to keep abreast of social imperatives andSECOM Group strengths, at the core of which are our on-line

Net sales and operating revenue

Operating income

trends in criminal activity has enabled us to realize innovative

security systems, to address the challenges faced by(In billions of yen)

(In billions of yen)services and systems. In addition, the invaluable opinions

subscribers by proposing optimal services and products, inand needs of subscribers communicated to our sales staff,

line with our abiding commitment to delivering safety andemergency response personnel and other employees in thepeace of mind and making life more comfortable andcourse of their work are conveyed to our R&D team, facilitating

convenient.

573.4

560.2

566.4

109.9

108.6

102.6

swift and precise adjustments that further enhance the
2019

2020

2021

2019

2020

2021

quality of our on-line security systems.
We work untiringly to nurture human resources toBusiness summary

We maintain ownership of security equipment andA distinguishing feature of our security services business is

extend it to subscribers on a rental basis. The fact that wethat it primarily consists of recurring revenue–based

take full responsibility for all aspects of our on-line security

services, that is, services based on long-term contracts. For

systems, from R&D through to equipment manufacturing,

example, the initial contract period for mainstay on-line

security planning, installation, around-the-clock monitoring,security systems is five years, after which the contract isemergency response services and equipment maintenance,

automatically renewed annually. The provision of SECOM

ensures exceptional quality and reliability. This approach has

on-line security systems includes the installation of sensors

also enabled us to accumulate extensive experience andand other monitoring equipment and around-the-clock

expertise, which we have leveraged to reinforce the threemonitoring by staff at a SECOM control center via

components of our operating foundation, namely, ourtelecommunications circuits. In the event an intruder, fire or

technological prowess, human resources, and operational

other irregularity is detected, control center staff dispatch

and control structure.

emergency response personnel from the nearest SECOM

Our technological prowess is underpinned by the SECOM

emergency depot and, if necessary, notify the police and/or
fire department.

looking research in the area of core technologies, and theOn-line Security Systems
Confirm security status/adjust system settings

Contracts for On-line
Security Systems in Japan(As of March 31, 2021)

A dedicated app makes it possible to confirm status and adjust
settings remotely using a smartphone.

Home

Flashing lightLight flashes if the system
detects an irregularity to warn
people in the vicinity and to
guide SECOM emergency
response personnel dispatchedto the subscriber’s premises.

Subscriber

SECOM
Emergency
Depot

SECOM
2 Alertemergency
response personnel

new recruits, as well as for emergency response personnel,

services, centered on on-line security systems, that respondsales staff, administrative staff and other employees, isto the diverse needs of customers. In recent years, on-line

provided at four training centers in Japan. This ensures that

security systems for commercial security subscribers must

employees fully understand our corporate philosophy andnot only offer monitoring for irregularities to guarantee

observe a code of conduct befitting security professionals,

security and prevent fires, but also support the businessas well as equips them with advanced knowledge and technicalactivities of subscribers around the clock. We continue toskills. We also leverage our wealth of know-how in extendingemphasize the quality of subscriptions and propose high-services to customers to improve training programs,

value-added on-line security systems that respond swiftly

enabling us to nurture employees. We recognize that ourand flexibly to the needs of subscribers.

employees are our most valuable management resource
and are essential to building a robust organization that

Expanding the functions of System Security AZ

underpins our ability to extend high-grade services.

System Security AZ is an all-in-one on-line security andCommercial

manage risks by preventing crime and fires, as well as

through a nationwide network of approximately 2,700

improves work efficiency by facilitating the management ofemergency depots, extensive know-how accumulated over

employee attendance, among others. Convenience is also

many years, the unerring decision making of our highly

enhanced with this system, which allows the users toexperienced control center staff and the swift actions of ourconfirm their security status and adjust system settings

emergency response personnel. By maintaining a close

remotely from a smartphone using a dedicated app. AZ

proximity to the communities in which we operate, we ensurealso boasts superb expandability, making it possible toheighten the system’s functions in response to evolving

extend the optimum solutions to their needs for safety andcustomer needs, technological innovations and changes

Subscribers display the SECOM security
sticker, the sign of well-protected
premises.

security. Our experience addressing diverse customer needsin the communications infrastructure. Because it

gives us outstanding flexibility and broad responsiveness.

consolidates multiple systems for commercial security

Police Dept.

These capabilities have earned us the trust of customers,

subscribers into one, AZ is also expected to benefit us

Fire Dept.

enhancing the

Gas
Company

SECOM
Control
CenterAlert emergency
services asnecessaryvalue of theService industries

6.9%

Financial services

6.4%

SECOM brand. At

Retailing/wholesaling

3.5%

present, contracts

Manufacturing

3.2%

Government agencies

3.0%

for our domestic

Other

16.9%

on-line commercial

Residences (excluding
condominiums and apartments) 37.4%
Condominiums and apartments 22.7%

and home security
systems number
SECOM Control Center

24

SECOM REPORT 2021

fire prevention system with a variety of functions that helps

control structure by offering on-line security systems

our ability to promptly ascertain customers’ wishes andcircuits

personnel

We work actively to offer an extensive lineup of security

SECOM sticker

using
1 Alerttelecommunications

SECOM
3 Dispatch
emergency responsestrengthen our responsiveness to customers. Training for

We have established an incomparable operational andIntelligent Systems Laboratory, which conducts forward-

Operating highlights
Commercial security services

System Security AZ

Confirmation of security statusfrom a smartphone

SECOM REPORT 2021

25

SECOM Todayby helping reduce our inventory, development andpart of the Japan Open Innovation Prize, which is sponsoredprocurement costs.

by Japan’s Cabinet Office.

In March 2021, we integrated this system with the
SECOM Cloud Video Surveillance service, making it possible

accessed by someone
leaving or entering thehome, further
underpinning this system’s

Verification testing of pedestrian area EV developed
to boost the efficiency of security patrols

growing popularity. SECOM

the cloud. Linking this service to AZ allows confirmation

Security services that incorporate new technologies
Development of the cocobo AI- and 5G-equipped
security robotof high-resolution live images captured by the various IP

We recently

Pedestrian area

also be linked with devices

cameras and recorded images of the arming and disarming

completedelectric vehicles

on the IoT to facilitate aof the system from a smartphone. It also expands thedevelopment of(EVs) are compact

variety of services that suit

lineup of surveillance cameras that can be used. With the

cocobo, a security

vehicles that use EV

the subscriber’s lifestyle.

aim of preventing users from forgetting to set AZ, a newrobot that makes

technology. We

For example, it can beprompt function was added. A notification function was also

use of AI and 5G

recently conductedconnected to smart

introduced that confirms security status to determine if any

technologies toverification testing

speakers to enhance

employees remain on-site and whether the site is still open

patrol and conductof a pedestrian areauser convenience.

or has been closed, ensuring the effectiveness of protection.

security inspections

Looking ahead, we will continue responding flexibly to thein place of security

needs of an increasingly diverse range of industries byguards at commercial facilities, office buildings and otherdeveloped by a

In June 2021, we developed thefurther enhancing the functionality of AZ and promoting

premises. As it travels autonomously on its predeterminedleading Japanese automaker to boost patrol efficiency and

SECOM Monitoring Service for

its adoption.

patrol route, cocobo analyzes video captured by its onboard

reduce the physical demands on guards patrolling major

Seniors, offered as an option toto manage images captured using AZ and IP cameras inHome Security NEO can

SECOM Home Security NEO

EV for use incocobo a security robot

security patrols

Security guard patrolling on a pedestrian area EV

Offering the new Monitoring Service for Seniors

camera in real time using AI, notifying the facility’s disasterevents or large-scale commercial facilities and have resolved

SECOM Home Security subscribers

New services and products that prevent the spreadof COVID-19

prevention center if it detects unattended items. If it

to officially commence deployment in October 2021. Looking

that includes a cloud-based

encounters anyone suspicious, the robot will intimidate themahead, we will continue to demonstrate the effectiveness of

smartphone app. This service

In this era of COVID-19, the practice of checking the bodyby emitting a combination of sound, light and smoke. Ifpedestrian area EVs in providing ever–higher grade security

stores and analyzes information

temperatures of people entering offices, schools, stores andnecessary, the unit can also be fitted with an arm

services and easing the physical burden on guards.

from SECOM Home Security

other facilities, and confirming that they are wearing masks

attachment to inspect waste receptacles and check whether

have become commonplace to prevent the spread ofdoors are properly locked. Cocobo also makes use of a wide

Home security services

windows and rooms of theinfection. In July 2020, we released a thermal camera

range of data in the cloud.

SECOM Home Security, currently celebrating its 40th

subscriber’s parents’ home in the cloud. Family members

anniversary, has expanded beyond essential security

can check up on their parents in a nonintrusive manner byfunctions such as monitoring for intruders and fires, andaccessing this information using a newly developed

emergency alerts, to include optional services such as

smartphone app to confirm any variations in the frequency

monitoring for gas leaks, medical emergency calls andor nature of daily activities. Subscribers unable to visit theirsafety confirmation. At present, SECOM Home Security has

parents because of COVID-19 restrictions who are concerned

been installed in all types of residences, including single andabout their parents’ wellbeing can use the app to ask SECOM

multigenerational family homes, condominiums and rentals.

to dispatch emergency response personnel to check in

SECOM Home Security subscribers in Japan currently

person. By installing an optional dedicated sensor,

number more than 1.45 million.

subscribers can also monitor the temperature and humidity

integrated with a tablet that uses AI technology to recognize
visitors’ faces, measure their facial temperature even if they
are masked, and determine their mask status. Linking thethermal camera with an access control system makes it
possible to measure the body temperature of people entering
against a predetermined body temperature setting andunlock the specified door, reducing the burden on employees
and ensuring the problem-free use of facilities.
We also conducted a practical trial of the AI-powered
Virtual Security Guard System, which features a virtual
character who performs security, receptionist and otherstatic guard duties, linked with a thermographic camera tomeasure a visitor’s body temperature and mask status. This
lowers the risk to both visitors and to human guards.
In February 2021, the open innovation development process that yielded the Virtual Security Guard System won the
Minister of Economy, Trade and Industry Award, conferred as

26

the years ahead, we will continue to promote therealization of an effective control infrastructure forfully autonomous flight.

SECOM REPORT 2021

Participation in efforts to create a flight control
infrastructure for fully autonomous drones
Drones are expected to find use in a wide range offields, but level 4 operation, that is, beyond-line-ofsight flight over urban and other populated areas,
requires a system in which operators are responsible
for controlling the flights of their own drones. In March
2021, SECOM participated in a demonstration test withfour other companies in which multiple drones withdifferent purposes—including pharmaceuticals
transport, security patrol, solar panel inspection andaerial sports photography—were flown simultaneously.
The test employed a flight control system developedby a major telecommunications company to validate
collision-avoidance and other system technologies. In

sensors installed in entryways,

SECOM Monitoring Service for
Seniors smartphone app

inside their parents’ homes when there is a risk of indoor

Expanding subscriptions to SECOM Home
Security NEO
In addition to an easy-to-use desktop home controller,
SECOM Home Security NEO can be armed and disarmedheatstroke. We will continue to enhance our lineup ofmonitoring services that deliver safety and peace of mind, as
well as make life more comfortable, whenever and wherevernecessary, for anyone and everyone.

remotely from a smartphone and includes an automatic
notification feature that enables a subscriber to receive
alerts on his or her smartphone when the system is

SECOM REPORT 2021

27

SECOM Today

Linking SECOM Home Security with the Apple Watch
for enhanced convenienceemergency, a customer can simply press a button on thetransmitter to notify the COCO-SECOM Operations Center,security services company in the Taiwanese market, offers aand other security services across the United Kingdom. The

We are currently developing two

which will promptly dispatch emergency response

broad lineup of security services and products, ranging fromcompany has built a robust reputation, earning the trust of

new services that link SECOM

personnel. Since its release in 2001, COCO-SECOM has beenhome security to safety management systems for large-scale

government agencies, leading financial institutions and major

Home Security with the Apple

used to locate missing children, women and seniors or tofacilities. The company is working actively to improve services

corporations.

Watch. The first of these seeks tosend alerts in the event of an emergency. Commercial

by incorporating new technologies such as wearable cameras.

improve user experiences bycustomers have used this service to protect the safety ofenabling subscribers to arm or

employees, avert robberies and the loss of important items,

extends a wide variety of security services and building

To accelerate acceptance of the spread in on-line security

disarm SECOM Home Security

and manage vehicle fleets and prevent the theft of cars.

solutions, centered on on-line systems. S1 continues to garnersystems in the PRC and Southeast Asia, both of which arepraise from customers for its swift emergency response

home to rapidly expanding wealthy and middle classes, weto a newly developed smartphone app. This dedicated app

services, which it provides through approximately 670

are actively promoting open innovation with local companies

second allows the effective use of monitoring information by

notifies the designated smartphone when an individual

emergency depots, underscoring the growth in subscriber

to provide services that reflect market needs in the countries

storing pedometer, calorie expenditure counter, exercise

carrying a transmitter leaves home, or enters or exits anumbers.

and territories in which we operate.

time, heart rate and other data from the subscriber’s Apple

specific area, or when a vehicle fitted with an onboard

Watch, as well as information on the frequency or nature oftransmitter moves unexpectedly. The transmitter also makes

encompassing bases in 26 cities, through which we continue

Center in Shanghai, and are working with major local

daily activities detected by SECOM Home Security, in theit possible for individuals to speak directly with COCO-

striving to expand sales. In addition, we have set up a

manufacturers, real estate firms and telecommunications

cloud for analysis and viewing. We are working to verify the

SECOM Operations Center staff when an alert is sent. Going

manufacturing facility in Shanghai that produces security

companies, among others, to devise services tailored tovalue provided and plan to begin offering these services,

forward, we will continue to capitalize on our more than two

equipment tailored to the needs of local customers.

regional characteristics and customer needs. In Bangkok, wewhich are designed to assist subscribers not only in

decades of experience offering this service to provide

managing their own health, but also in monitoring thereliable safety and peace of mind.

simply by tapping the SECOM

Using Apple Watch to set
SECOM Home Security

app on their Apple Watch. The

In March 2021, we revamped COCO-SECOM by linking it

Publicly listed affiliated company Taiwan Secom, the largest

Local industry leader S1, which is publicly listed in the ROK,

In the PRC, we have created an extensive security network

In Southeast Asia, the efforts of SECOM Group companies in

Subsidiary Secom plc provides on-line security systems

Expanding operations in growing markets

In the PRC, we have established the China Innovation

have opened the ASEAN Innovation Center, which is engaged

Thailand, Malaysia, Singapore, Indonesia, Vietnam andin the planning and introduction of products and services

Myanmar are bolstering acceptance of on-line security

customized for Association of Southeast Asian Nations

March 31, 2022.

Overseas security services
Extending services in 13 countries and territories

systems.

(ASEAN) member states. In November 2020, we began

Other security services
The new COCO-SECOM

We made our overseas debut in 1978, when we established aincluding safety management systems. Customers in this

digital marketing and customer management systems topresence in Taiwan. Today, our overseas security services

market range from small and medium-sized companies toexpand the scope of local operations.

COCO-SECOM, a mobile security system, uses signals frombusiness encompasses operations in 13 countries andlarge-scale facilities.

GPS satellites and cellular phone base stations to pinpoint

territories, through which we provide diverse services, centeredGroup companies in Australia provide high-grade services,completing the acquisition of three companies, in Malaysia,

the location of dedicated portable transmitters carried byon on-line security systems with emergency response services,

including large-scale systems integration services, to private-

Singapore and Hong Kong, between September 2020 andindividuals or attached to objects. In the event of ancustomized to reflect local needs and sensibilities.

sector companies, such as financial institutions and major

February 2021. These new subsidiaries, which provide a widecommercial facilities, and to state and federal government

range of security systems, mainly to residential subscribers,

agencies.

and small and medium-sized companies, will continue towellbeing of parents living apart, in the fiscal year ending

COCO-SECOM Mobile Security System (Location and Emergency Response)

We provide a diverse array of security services in Turkey,

We also continue to expand our presence in Asia,

In New Zealand, we provide security, as well as
GPS satellite

COCO-SECOM
Operations
CenterNotification of police(if warranted)

offering cloud-based on-line security systems, leveraging

leverage synergies with other SECOM Group companies tomaintenance and inspection services. Our high-performanceaccelerate the provision of safety and peace of mind insurveillance camera systems enjoy particularly solid support

overseas markets.

from customers ranging from prominent supermarkets tofinancial institutions.

Request forsearchPositioning
information

Subscriber
Search requests can bemade using a land line, theInternet or a smartphone

Cellular phonebase station

SECOM
Emergency
Depot

Policedepartment,
emergency
services

COCO-SECOM Transmitter
Device (vehicle-mounted)

COCO-SECOM Transmitter
Device (portable)

COCO-SECOM transmitter
Dispatch emergency
response personnel(if requested)
Control center(Secom Guardall NZ Ltd.)

28

SECOM REPORT 2021

Emergency response vehicle(Secom Vietnam Security Service JSC)

SECOM REPORT 2021

29

SECOM Today

Fire Protection Services
Net sales and operating revenue

Operating income(In billions of yen)

(In billions of yen)

144.1

155.9

143.9

17.8
14.2

2019

2020

2021

2019

13.1

2020

systems manufactured by Shanghai Nohmi Secom Fire

Expanding sales of B Catch Now

Protection Equipment Co., Ltd., were recently installed along

When a fire breaks out, Nittan’s B Catch Now indoor location

two subway lines that opened in the city of Hangzhou, ininformation system uses signals from sensor beacons

Zhejiang Province, that commenced operation in December

installed inside the fire detector to pinpoint the location of2020. In 2022, the company will deliver 430 fire alarm

people, the fire’s point of origin and the position of fire

receivers and approximately 220,000 sensors for use at 187

extinguishers and hydrants on a smartphone, supporting

stations, including those on six new subway lines currently

initial responses, including swift firefighting and evacuation.

under construction. Going forward, Nohmi Bosai will

On an everyday basis, customers can use the system tocontinue to reinforce its overseas operations.

analyze staffing and flow lines in the workplace, helping to

2021

Operating highlights

rapid digitalization has triggered a rush to build data centers

This segment centers on the operations of Nohmi Bosai andand logistics facilities. In response, Nohmi Bosai is fortifying

Nittan, two of Japan’s leading fire protection services

its ability to propose fire protection systems for suchcompanies, which include the provision of automatic fire

structures. For example, for data centers and similar

alarms and fire extinguishing systems, and equipment

facilities, the company actively encourages the installation

inspection and maintenance services, for a broad range ofof not only fire alarms and fire extinguishing systems, but

applications, including office buildings, production facilities,

also of the high-precision Protecview smoke detector,

tunnels, cultural properties, ships and homes. Bothintended to facilitate early detection and response, therebycompanies boast competitive advantages derived from aminimizing damage.

wealth of experience and know-how, as well as an integrated

improve efficiency and reform work styles. Demand forDeveloping and providing products that take into accountindoor location information systems, especially in offices,

installation quality and maintenance considerations

hospitals and manufacturing facilities, has increased as a

Nittan works to develop unique fire detectors, placing

result of the COVID-19 pandemic and the resulting

emphasis not only on product performance and price, but

introduction of open plan offices and social distancing

also on customer feedback regarding design, installation

measures, and the need to quickly trace close contacts when

quality and maintenance considerations. The company’s dual

an infected individual is found. Looking ahead, Nittan will

optical spot-type smoke detector, with a preventative

continue to actively market B Catch Now in response tomaintenance display function and a 360-degree omniview

emerging customer needs.

operational status indicator, eliminates restrictions on theorientation of installation. Moreover, devices can be
maintained in good working order in terms of sensitivity
over long periods of time because changes due to grime andservice configuration encompassing everything from R&D to

Delivering fire alarm systems for subway lines in the PRC

system planning, manufacturing, installation andCapitalizing on experience in the provision of fire protection

maintenance, allowing them to extend high-grade services

systems accumulated in Japan, Nohmi Bosai provides high-tailored to customer needs. In the area of automatic firevalue-added services, including proper after sales care, inalarms, Nohmi Bosai’s and Nittan’s efforts in the period

the PRC, India, Southeast Asia and Taiwan. Fire alarmunder review focused not only on securing orders for new

other factors can be monitored constantly and automaticallyrectified. The preventative maintenance display function—anindustry first—blinks during inspection if the sensor needs
to be replaced.
Nittan has also developed Simex, the industry’s smallest
high-performance fire detector for apartments. In addition tobuildings, but also on responding to replacement demand in

one-touch installation, this design-forward recessed

the renovations market by drawing on their solid track

detector is white—an industry first—so it blends into therecord and the trust of customers to promote sales based on

B Catch Now display of location information (left) andmovement data (right) (Nittan)

ceiling. Nittan will continue to promote the development of

optimized proposals. In fire extinguishing systems, orders

products and systems that leverage advanced technologies

remained brisk despite the impact of COVID-19.

to protect both the lives and property of its customers.

Strengthening the foundation of core businesses andentering new areas

Protecview (Nohmi Bosai)

Nohmi Bosai is working to strengthen its core businesses,
notably the provision of fire protection systems, andmaintenance and inspection services, that comply withJapan’s Fire Service Act, and to improve its ability to offer
comprehensive proposals that go beyond the scope of theFire Service Act, encompassing products and services thatwill reinforce existing businesses. In recent years, measures
have been stepped up to protect national treasures andimportant cultural properties against fire. At the same time,

30

SECOM REPORT 2021

Fire extinguishing system for a culturalproperty (Nohmi Bosai)

Simex recessed fire detector for apartments (Nittan)

SECOM REPORT 2021

31

SECOM Today

Highlights in this area in the fiscal year ended March 31,

Medical Services

ICT-based services

2021 included the development and launch of anticancer

These services center on the deployment of distinctive

agent decomposition solution HD Protect (HD stands for

networked services for medical institutions. These include

Net sales and operating revenue

Operating income“hazardous drug”), which protects medical staff from thecloud-based medical report services SECOM Ubiquitous(In billions of yen)

(In billions of yen)risk of exposure to potentially harmful anticancer agents. We

Electronic Medical Record (EMR) and SECOM OWEL, the Hospi-

also introduced an anticancer agent exposure investigation

net remote image diagnosis support service and SECOM

service, which includes formulating measures to counter the

SMASH, a hospital management information analysis system.

181.9

187.3

182.8
5.8

6.2
3.9

risk of exposure to anticancer agents in hospitals and
2019

2020

2021

2019

2020

2021

Operating highlights

medical care by dispatching visiting nurses from a nationwide

In the belief that extending services that protect health andnetwork of 33 visiting nurse stations to provide expert medical

Capitalizing on our accumulated expertise in homedevelops related proposals. Going forward, we will continue

medical care and in the provision of assistance to affiliatedstriving to contribute to the safety and security of medical

medical institutions, together with our extensive management

care settings, and to the realization of ever-higher levels of

resources, we offer the SECOM Vitalook remote medical

service quality in this business.

support platform. SECOM Vitalook collects and stores home
medical care patients’ vital sign data (e.g., pulse, blood

life is the ultimate expression of our commitment to delivering

treatment and nursing care in the patient’s home under the

Personal care services

true safety and peace of mind to customers, we have createddirection of his or her physician. Our pharmaceuticals

This category includes the provision of visiting personal

data center, allowing physicians, nurses and other healthcare

a medical services business that encompasses four categories:

dispensing services involve filling prescriptions andcare services and adult day care services, as well as theprofessionals at contracted medical institutions to review

medical care, personal care, healthcare and preventative

delivering medications needed by patients at home, as wellmanagement of comprehensive senior care centers thatsuch data in real time and provide appropriate instructionscare, and ICT-based services. We also continue to capitalize

as delivering medical supplies, including infusion lines andextend diverse in-home care services. We also operate

remotely. In the period under review, empirical research wason ICT to create seamless, integrated community-based

syringes for home parenteral nutrition (HPN) administeredresidences for seniors, which bring together our know-how

conducted using SECOM Vitalook for COVID-19 patients inhealthcare models encompassing, among others, support

via central venous catheter, and medical hygiene products.

in medical and personal care service, as well as ourisolation to maintain the quality of examination and nursing

for affiliated medical institutions and the provision of home

Our support for affiliated medical institutions focuses on

expertise in security services.

services while reducing the risk of infection for medical staff.

pressure, body temperature and electrocardiogram) at a SECOM

This research was chosen by the Japan Agency for Medical

nursing, pharmaceutical dispensing, personal care, andpartnering with diverse hospitals and clinics extending

health and preventative care services.

services ranging from emergency medicine to convalescent

Health and preventative care services

Research and Development (AMED) for an official project oncare to help ensure high-grade community-based healthcare.

We are taking steps to expand health and preventative carethe development of innovative medical technologies for use

We also leverage our extensive expertise and proficiency inservices to encourage health maintenance and promotion

in treating viruses and other infectious diseases.

Our medical care services business began with home nursing

home medical care to assist with the opening and operationand enhance quality of life. At membership-based club

services and pharmaceutical dispensing services, both ofof community clinics. We also leverage our experience in

SECOM Health Care Club KENKO, medical staff, including an

how cultivated in the medical services business and thewhich are offered to patients in the comfort of their own

Japan to operate Sakra World Hospital, a general hospital inattending physician, work as a team to provide a variety ofmanagement resources of the SECOM Group to develop andhomes. Today, our home nursing services assist home

Bengaluru, India.

health management services.

extend distinctive ICT-based services that contribute to

Medical care services

Going forward, we will continue to capitalize on know-

healthier, more comfortable lifestyles.

SECOM

Home Medical Services
Medical Care Institution

Prescription

Physician’s guidelines

Collection and storage of home medicalcare patient’s vital sign data
Patient’s home

Nurse’s report

Coordination
Home Nursing
Services

Pharmaceutical
Dispensing and Home
Delivery Service(SECOM Visiting
Nurse Station)(SECOM Pharmacy)
SECOM Pharmacy

Consultation

Patient’s
device

SECOM
data centerCollection and storage ofvital sign data
SECOM Vitalook
Automatic alerts
Video calls

Prescription
Pharmaceutical delivery

32

SECOM REPORT 2021

Patient

Remote monitoring ofpatient’s condition
by healthcare professionals

Nurse visit
Outpatient care

Display of pertinent data

Contracted
hospitals

Relatedorganization

Sharing of information withrelated organizations

SECOM REPORT 2021

33

SECOM Today

Insurance Services

Geospatial Information Services

Net sales and operating revenue

Operating income(In billions of yen)

(In billions of yen)

61.4
44.8

9.3

Net sales and operating revenue

Operating income(In billions of yen)

(In billions of yen)

51.9

46.9

53.7

4.4

54.1
3.0
1.9

2019

2020

2021

–4.9

–4.3

2019

2020

2021

2019

2021

2019

2020

2021

Operating highlights

Fire insurance policies with unique discounts

Operating highlights

Building the Risk Information Platform businessWe believe that both security services, which seek to prevent

SECOM Anshin My Home is a fire insurance policy for residential

risk, and non-life insurance, which looks after people should

customers that features a discount on premiums for

misfortune strike, are essential to our ability to deliver

subscribers who have installed on-line security systems, inuninterrupted safety and peace of mind. In keeping with thisrecognition of the fact that such systems reduce the risk ofbelief, we continue to provide a diverse range of non-lifetheft and fire. The Security Discount Fire Policy is a similar

insurance policies. In April 2020, Secom General Insurance

policy for commercial customers who have installed on-line

established a second insurance claims center in Kyushu insecurity systems in which premiums are discounted tocollaboration with SECOM Group BPO services company TMJ

reflect the risk-mitigating benefits of such systems. Activewith the aim of reinforcing business continuity planning

efforts to also propose these policies when introducing(BCP) measures and enhancing customer services. Two

on-line security systems, as well as rising appreciation for

Pasco is collaborating with a leading geological services
firm to create the Risk Information Platform in response toa growing need for information critical to grasping andeffectively countering natural disasters, and to helping
ensure business continuity. As a first step, in April 2021
Pasco completed the foundation of this platform and beganproviding the Land Information Report service. Targeted
mainly at real estate, insurance, logistics and retail firms,
this service involves the extension of on-demand information
on risks associated with natural disasters, ground conditions
and soil pollution, as well as on population distribution,commercial environment and traffic patterns, to bolster
understanding of business risks, as well as to support
marketing activities. Pasco will continue to seek theparticipation of
new partners
to enhance
the platform’s
content andservices.

months later, in June 2020, we deployed a new system

discounted premiums and enhanced coverage, continue toextending non-life insurance services that has improved

push up subscriptions. Looking ahead, we will continue

operational efficiency and productivity, as well as further

working to further expand sales of fire insurance, as well as

strengthened our ability to offer high-grade services andto promote the installation of security systems.

Subsidiary Pasco Corporation collects geospatial datafrom commercial satellites, aircraft, drones and proprietary
vehicle- and ship-mounted sensors, among others, which
it integrates, processes and analyzes to provide geospatial
information services, assisting efforts to address diverse
social imperatives. In recent years, the growing need fordisaster prevention and mitigation—a consequence of theincreased frequency of natural disasters—and measures
to resolve issues caused by aging infrastructure has
broadened the scope of use for geospatial information.
Pasco’s operations are divided into services for domestic
public sector entities, services for domestic private
sector customers, and support services for developing
countries overseas, with the first category accounting
for approximately 80% of segment net sales andoperating revenue.

SECOM Anshin My Car: Backed by on-site support
from emergency response personnel

Leveraging 3D geospatial information technologies
to address social imperatives

SECOM Anshin My Car is an automotive insurance policy that

With the aim of realizing smart cities and enhancing
national resilience, Pasco is promoting efforts to create
digital twins, that is, living digital replicas of physical assets,using data captured by sensors. In November 2020, thecompany began operating the new Real Dimension vehiclemounted road condition surveying system. Equipped witha laser system that measures 3D coordinate data, a 3D
camera that captures images of road surface conditions,and a digital camera that captures continuous imagesof the overall surroundings, Real Dimension can capture
all relevant geospatial information in a single run. Basedon this information, Pasco
conducts simulations in thevirtual space and applies itto the resolution of issues
pertaining to an aging
infrastructure and national
resilience, and therevitalization of industry.

ensure business continuity.

High marks for the MEDCOM unrestricted cancer
treatment policy
MEDCOM is an unrestricted cancer treatment policy that

includes around-the-clock access to on-site support byprovides coverage for costs associated with all inpatient

SECOM emergency response personnel in the event of an

hospital treatments, including those covered under Japan’s

accident if requested, thereby helping ensure the peace of

National Health Insurance (NHI) scheme, those for advanced

mind guaranteed by the SECOM brand. This policy’s customer-

medical care, and those for which the individual usuallyfocused assistance, which also includes emergency responsebears the financial burden. Coverage for inpatient treatment

personnel contacting the police and ambulance services,

is unlimited, while that for outpatient treatment is up to ¥10

confirming the seriousness of the accident and photographing

million per five-year period. This allows the subscriber tothe site, continues to be highly evaluated by subscribers.

concentrate on treatment without having to worry about theeconomic implications thereof. Developed from the perspectiveof the subscriber, MEDCOM continues to earn high marks,
underpinning the steady expansion of subscriptions.

SECOM Insurance claim center

34

2020

SECOM REPORT 2021

Conceptual image of the Risk Information Platform

Promoting satellite-based services
In June 2021, Pasco, together with five other leading
domestic satellite data services companies collaborated toestablish Satellite Data Services Co., Ltd., to commercialize
satellite data analysis services with the aim of providing
information critical to, among others, prompt situationalawareness in the event of a disaster and regular monitoringof infrastructure. This new firm will capitalize on theexpertise of each participating company to develop business
schemes that benefit a wide range of customers, including
the national government and local authorities, and intends tolaunch full-scale services in the fiscal year ending March 31,2024.

Real Dimension

SECOM REPORT 2021

35

SECOM Today

BPO and ICT Services

with a company-issued telework device, this service reduces

global network hub and a central connection point for data

the risk of unauthorized access and leaks of information.

centers across Japan and around the world.

Through this new service, the SECOM Group will continue to
Net sales and operating revenue

Operating income(In billions of yen)

(In billions of yen)

101.3

110.9

119.3

13.6
9.4

10.6

support the efforts of companies to reform work styles.

BPO services*In August 2020, SECOM Safety Confirmation Service was rated the top largescale disaster preparedness service for commercial users in Japan in terms ofcontract volume and number of users by research firm Shopper’s Eye Inc.

Owing to a declining labor force and the spread of COVID-19,
continues to earn praise for its high-grade contact centerand back-office support services tailored to the needs ofData center services
2019

2020

2021

2019

2020

2021

financial institutions and other major companies.

Data center operator

TMJ recently began providing an AI text classification

At Tokyo capitalizes

service that accelerates data analysis by using machineon its more than two

Operating highlights

daily basis, thereby supporting the efforts of subscribing

decades ofThis segment encompasses the operations of subsidiaries

companies to ensure effective personnel management.

experience andSecom Trust Systems, which develops and provides ICTInformation security services provide comprehensive

operational know-

services that deliver safety and peace of mind and makes

support to protect customers’ information from increasingly

how to offer a broad

lives more comfortable and convenient; At Tokyo, one ofshrewd and sophisticated cyber attacks, from advance

range of customers

Japan’s largest data center operators, which offers services

diagnostics and preventative measures to monitoring anduninterrupted,

36

learning to classify large amounts of text previously analyzed
and classified by people. TMJ’s ability to leverage its
expertise in text mining*1 to conduct analysis and propose
improvements enables it to assist the operations ofcustomers in a broad range of industries.
At Tokyo data centerboasting excellent connectivity to cloud-based services; andthe implementation of countermeasures in the event of anaround-the-clock data center services that respond to

TMJ, which extends contact center, and other BPO services.

incident. We also capitalize on our competitive advantages

diverse needs and have earned a reputation for world-class

All three companies work to respond to the diverse, ever-as a certification authority, which is responsible for thequality and reliability. Of note, the company’s key competitivechanging needs of customers.

management of cryptographic keys, to guarantee the safe

advantage is its ability to provide high-grade services thatand secure transmission of information using IoT devices.

boast low latency and excellent connectivity with megacloud,Large-scale disaster preparedness, information
security and cloud-based services

services that improve the efficiency and convenience ofan important IT infrastructure for companies for which

In addition to overseeing the development and operation ofcustomers’ operations, thereby helping to reduce costs.

system outages would significantly impact society.

IT systems for SECOM Group companies in the security

Contracts for SECOM Anshin Eco Document Digitization

services and other businesses, Secom Trust Systems

Service, which digitizes documents in compliance with related

heightened the importance of cloud-based services, not only

leverages its accumulated ICT know-how to provide large-

legislation, have exceeded 100,000 since the service was

as a measure for large-scale disaster preparedness but also

scale disaster preparedness services that underpin businesslaunched in 2009. Secom Trust Systems is also capitalizing on

to respond to rapid digitalization. Against this backdrop,

continuity, as well as information security services andour distinctively SECOM high-level security and robust Secureneeds are rising for network redundancy in the Tokyo

cloud-based services.

Data Center capabilities to accelerate sales of a safe, legally

metropolitan area and the Kansai region. At Tokyo, which

Large-scale disaster preparedness services include

compliant contract and application digitization service forhad originally focused its efforts to establish data centers inassisting customers in the formulation of BCPs to ensure

local authorities that responds to government and private

Tokyo, opened two facilities in the Kansai region in 2020 andadvance arrangements, the implementation of effective

sector digital transformation (DX) needs.

will open one in Kyushu in 2021. This will position it to assist

immediate response measures and the prompt restart ofSecom Trust Systems also offers a variety of cloud-based

In August 2020, Secom Trust Systems launched SECOM

internet exchange (IX) and diverse other services, creating

In recent years, we have seen increased demand for andcustomers in constructing and operating efficient andseamless networks.

operations in the aftermath of a major disaster. The SECOM

Anshin Telework via USB Remote Device, a service that

Safety Confirmation Service enables subscribers to swiftly

allows employees to securely log into their company’s

ascertain the safety of employees and their families andinternal systems

and overseas service providers and telecommunications

damage to sites in the event of a major earthquake or othersimply by inserting acarriers. This ensures efficient, on-demand access todisaster or the failure of key infrastructure. As of March 31,

USB memory into

providers of megacloud, IX and a wide range of other2021, this service was used by approximately 8,300 companies

their own device. In

network and platform services. In 2023, At Tokyo will open

employing around 7.5 million individuals, making it the mostaddition to beinga new hyperscale urban data center in Tokyo.

widely used crisis management service in Japan.* Against aconsiderably lessbackdrop of rising COVID-19 infections, a new function was

costly than equip-

added to this service to check the health of employees on aping every employee

SECOM REPORT 2021

Japan has seen robust demand for BPO services. TMJ

To assist companies facing challenges extracting andanalyzing customer comments, TMJ has also launched a
new chatbot*2 service that facilitates swift responses tocustomer inquiries, as well as reduces labor requirements.
This service involves the implementation of chatbots
and optimizes their operation, from the preparation of
automatic responses to the routing of inquiries to live
operators. TMJ provides backup for the prompt, costeffective implementation of chatbots programmed to deal
with customer-specific inquiries (for example, admissions
questions for companies offering membership services andrepair requests or procedural queries for manufacturers andfinancial services firms).
By promoting the construction of next-generation contact
centers, TMJ will continue to assist companies seeking to
improve customer experiences, as well as to resolve issues
in the provision of customer support.
*1 Text mining is the process of deriving meaningful information from large
volumes of text.
*2 A chatbot is a software application used to conduct an online chat with acaller by responding to text input or speech.

At Tokyo’s data centers bring together multiple domestic

At Tokyo will continue to help customers generate new
business opportunities via its platform, which promotes
SECOM Anshin Telework via USB Remote Device

Chatbot service, featuring chatbot-generated responses to customer
inquiries (left) and routing to live operators when necessary (right)

flexible connectivity and mutual connections, making it a

SECOM REPORT 2021

37

Sustainability

Basic philosophy

address ESG-related issues, which in turn enables us toMateriality

Since our establishment, we have sought to contribute tocontribute to the achievement of the sustainable development

In keeping with our fundamental commitment is to offer

perspectives, based on SECOM’s Philosophy and the coresociety through our business activities, acknowledging thegoals (SDGs).

services that anticipate what is needed to ensure

concepts of The Constitutions of SECOM Group in Businesssustainability for society, we promote corporate socialand Management, described as “solidifying our foundation ofimportance of sustainability for ourselves and for society. We

In assessing the materiality of issues, we employ three

Framework for promotion

responsibility (CSR) and creating shared value (CSV) throughsociety’s trust,” “enhancing our ability to adapt to change

infrastructure designed to provide services that counter the

We continue to place a priority on maintaining strong

our business activities and tirelessly pursuing service

and create value,” and “creating services needed by society.”

increasing risks associated with crimes and accidents, cyber

relationships and encouraging dialogue with our various

innovation.

This has enabled us to identify six themes from among a

are working to create the ANSHIN Platform, a service

crimes, natural disasters, illness and aging, to deliver

stakeholders as we advance sustainability. Accordingly, we

To continue creating innovative services and systems

seamless peace of mind to anyone and everyone, whenever

have established the Sustainability Promotion Office, whichthat help resolve diverse issues affecting today’s rapidly

our ability to address social imperatives through ouris tasked with integrating sustainability initiatives into

evolving society, we have identified six priority materiality

business activities and achieve sustainable growth inbusiness strategies.

themes, that is, themes of primary importance tocorporate value.

and wherever necessary.
The key to our efforts to further enhance corporate value
is having human resources who are committed to providing

The Sustainability Promotion Office periodically stages

sustainable growth, based on a self-assessment conductedsatisfaction that exceeds customers’ expectations. Securing

large pool of ESG-related issues of primary importance to

Our mission is to realize a society free from concerns.

the SECOM Group Sustainability Meeting, a forum for sharing

in accordance with ISO 26000, the International Organization

With this in mind, we will incorporate the six priority

and fostering talented human resources who have the ability

information with Group companies, which is attended byfor Standardization’s benchmark for social responsibility,

materiality themes we have identified into individual

to adapt to change and create value and who seek tobusiness strategies and promote them Groupwide.

environmental and CSR managers and staff from individual

and the Global Reporting Initiative (GRI)’s GRI Standards, andcontribute to society are thus vital. By ensuring that SECOM’s

business segments across the Group. Participants exchangewith consideration given to feedback from stakeholders.

Philosophy permeates our operations and encouraging

information and hold discussions to advance initiatives

adherence to the SECOM Group Code of Employee Conduct,

aimed at addressing domestic and global social imperatives,

we have built a diverse team of people who thrive in a freecontributing to the achievement of the SDGs, and responding

and open corporate culture, which we recognize as ourto the recommendations of the Task Force on Climate-greatest asset. We also understand the importance ofrelated Financial Disclosures (TCFD).

rigorous corporate governance in increasing the trust ofsociety and fully leveraging our competitive edge.
Recognizing that protecting the environment is essential

In May 2018, we became a signatory to the

Identifying Priority Materiality Themes
Missionto our ability to provide services that deliver safety andUnited Nations Global Compact (UNGC) andpeace of mind and make life more comfortable andpledged our support for the Ten Principles ofExtract issues

convenient, we incorporate consideration for the environment

the UNGC, which are classified into the four

into all aspects of our operations.

categories of ”Human rights,” “Labour,”Led by the Sustainability Promotion Office, we establishedthe cross-business Sustainability Working Group andextracted material issues, that is, issues with the potential toaffect our ability to grow sustainably with society.

We believe that increasing corporate value by expanding

Priority Materiality Themes

Process for

Support for the UNGC

“Environment” and “Anti-corruption.”

Help realize a society free from concerns

Customer-oriented
servicesour business activities directly improves our ability to

Earning selection for inclusion in ESG investment indices

Assess the materiality of each issue

Our efforts to address ESG-related issues continue to earn high marks from third-party assessment organizations aroundthe world. Of note, we have been selected as a constituent of a number of key global ESG investment indices. These include
all four indices for Japanese equities used by Japan’s GPIF.**The four indexes used by the GPIF are the FTSE Blossom Japan Index, the MSCI Japan ESG Select Leaders Index, the MSCI Japan Empowering Women Index(WIN) and the S&P/JPX Carbon Efficient Index.

We plotted each issue on a materiality matrix, with “impact
on society” as the vertical scale and “impact on SECOM” asthe horizontal axis, grouping the plotted issues to consider
the importance thereof based on trends in social imperatives
and a risk/opportunity analysis.

Coexistencewith local
communities
Creating
services neededby society

THE INCLUSION OF SECOM CO., LTD., IN ANY MSCIINDEX, AND THE USE OF MSCI LOGOS,
TRADEMARKS, SERVICE MARKS OR INDEX NAMESHEREIN, DO NOT CONSTITUTE A SPONSORSHIP,
ENDORSEMENT OR PROMOTION OF SECOM CO.,LTD., BY MSCI OR ANY OF ITS AFFILIATES. THE
MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF
MSCI. MSCI AND THE MSCI INDEX NAMES AND
LOGOS ARE TRADEMARKS OR SERVICE MARKS OF
MSCI OR ITS AFFILIATES.

38

SECOM REPORT 2021

Identify priority materiality themes
On the basis of deliberations conducted by the Sustainability
Working Group, corporate headquarters’ divisions consider
proposed issues and identify key materiality themes. Choices
are reported to the Board of Directors by the director who
serves as head of the General Affairs & Human Resources
Division (in charge of sustainability), to be approved.

Leveraging
advanced
technologies andpartnerships

Decarbonization
and a recyclingbased society

Enhancing ourability to adapt
to change andcreate value

Solidifying
our operating
foundation ofsociety’s trust

Employee selfrealization anddiversity

Fair corporate
activities and respectfor human rights

SECOM REPORT 2021

39

SECOM’s Philosophy and the SECOM Group Code of Employee Conduct

ESG Initiatives

Encouraging awareness of SECOM’s Philosophy andin the form of handbooks and pocket-sized guides, which are

adherence to the SECOM Group Code of Employee Conduct

distributed to employees in Japan and overseas.

are essential to maximizing the trust of stakeholders and ourCode of Employee Conduct are included in our e-learning

SECOM’s Philosophy provides a spiritual anchor for Group

program, which is provided annually, and employees’

employees and the entire SECOM Group. The driving force

compliance status is reflected in their semiannual

behind our growth and evolution, this philosophy emphasizes

performance reviews. An employee who becomes aware of aa refusal to be content with the status quo and a commitment

violation is obliged to submit a report to his or her superior. In

to doing what is appropriate. The first element expresses our

addition, we have established a whistle-blowing system. We

determination to offer innovative services and systems byare currently using IT equipment and taking other steps to

SECOM’s Philosophy and the SECOM
Group Code of Employee Conduct

Efforts to ensure the full penetration of SECOM’s Philosophy andencourage strict compliance with the SECOM Group Code of Employee
Conduct to bolster employee motivation and earn the trust of society

challenging accepted norms, while the second calls forpromote more strict observance.

Securing and fostering talented
human resources

Focus on securing and fostering talented human resources who havethe ability to adapt to change and create value and who seek tocontribute to society

they are just, fair and beneficial not only to SECOM but also toseeks to ensure that SECOM’s Philosophy fully penetrates

society as a whole. The SECOM Group Code of Employee

every aspect of our operations and to bolster motivation andConduct sets forth ideals for the conduct of employees in bothproductivity Groupwide. Through this initiative, we aim to

Advancing diversity

Assignment of diversity and inclusion staff to the Human Resource
Department to promote the creation of positive work environments inwhich diverse employees can maximize their capabilities

public and private life and specific standards for the day-to-

nurture employees who embody SECOM’s Philosophy to

day performance of duties. We have published SECOM’s

foster a stronger corporate culture, ensure a well-established

Promoting work–life balance

Establishment of programs and promotion of ongoing efforts toenhance work–life balance and increase employee retention

Philosophy and the SECOM Group Code of Employee Conduct

brand and further earn the trust of society.

Dialogue with employees

Employee job satisfaction surveys and the exchange of opinions
between the SECOM Employee Union Federation and executives tofacilitate the creation of employee-friendly workplaces

Securing and fostering talented human resources

Social initiatives
Relevant SDGs

Central themes
Occupational health and safety

Summary
Preparation of manuals that draw on our accumulated know-how andpromotion of training to ensure employee safety and collaboration with
the SECOM Health Insurance Union to manage employee healthOccupational health and safety

judging the legitimacy of our actions by examining whether

Since 2018, we have promoted the Tri-ion initiative, which

Our vibrant, diverse team of employees, who are critical to

Employee performance reviews look to impartiallyour ability to provide services that deliver safety and peace

evaluate employees’ efforts and support self-realization.

of mind, are our greatest asset and another driving force

Evaluations are based on reports prepared by employees

We believe that our ability to provide safety and peace of mind

day-to-day operations across Japan and able to provide

behind our growth and evolution. Accordingly, we strive toassessing their execution of duties, achievements and areas

to our customers depends on first ensuring the health andguidance for the improvements where necessary to enhance

secure and foster talented human resources who have thein need of improvement, and rational assessment categories

vitality of our employees. Accordingly, we promote various

occupational safety. The division has developed procedures

ability to adapt to change and create value and who seek tooptimized for each particular job. We use an open, fair format

initiatives aimed at protecting and enhancing employee healthand equipment designed to prevent accidents and promotes

contribute to society.

whereby review results are disclosed to employees. In

and creating safe, employee-friendly workplaces.

initiatives to improve employee skills, including a program

As a company that extends services across Japan andaddition, we promote self-actualization through systems

The Human Resources Department has established athat seeks to improve driving techniques. Efforts to ensurearound the world, we promote active recruiting efforts. We

designed to assist with career development, including thesystem to comprehensively manage occupational health insafe, employee-friendly workplaces also include the provisionalso work to enhance employee welfare with the goal of

Self-Reporting System and Challenge Support System, whichcollaboration with the Health Promotion Office, which isof extensive training aimed at preventing occupational

improving our ability to retain human resources, and haveencourage employees to declare and assists their efforts tostaffed with occupational health physicians (OHPs), and theaccidents, including that related to the risk of security

established a variety of programs designed to boost

realize their own future goals and aspirations.

SECOM Health Insurance Union. To promote continuous

accidents in various situations.

motivation and productivity, as well as to create employeefriendly workplaces. One such program enables employees toimprovements in occupational health and safety, healthcommittees nationwide meet monthly to discuss key issues,
including employee working hours and efforts to improvehealth, enhance work environments, ensure safety andParticipants in Training Aimed at Preventing Occupational
Accidents(Number of people)

2,739

2,610
2,348

health, conducting stress checks, arranging meetings withpsychiatrists and specialized counselors, to make certain that

325,000

250,000

1,000

an overseas study program and a subsidy system for(Number of people)
Hours spentin training(left scale)289,364

243,993

15,884

175,000

18,00012,00011,461also launched a variety of specialized training options, including

201,640

Participants(right scale)

6,000

6,190

employees to take correspondence courses. In the area of
training for security guards, we have introduced VR technology,

control structure facilitates the efficient exchange of reports

SECOM REPORT 2021

(Hours)a manner that benefits employees on the front lines. We haveidentified occupational safety risks. Our operational andmanagement, ensuring that the latter is fully apprised ofParticipation in Training Programswith high ethical standards and superior skills. In addition toand job-specific curricula that reinforce practical capabilities in

2,000

To ensure occupational safety, the Operations Divisionand instructions between the front lines and senior

suit career phase or personal preference.

training for all new employees, we have developed department-

employees feel both physically and mentally supported.
verifies day-to-day security operations and works to reducechoose the geographic location to which they are assigned to
We provide extensive training to foster human resources

3,000

prevent risks. We also actively care for employees’ mental

40

Questions on SECOM’s Philosophy and the SECOM Group

corporate value. Handed down since our establishment,0

2019*Scope of reporting: SECOM CO., LTD.

2020

2021
(Years ended March 31)

among others, to improve effectiveness and ensure employees
acquire excellent discernment and know-how.

100,000

0

2019

2020

*Scope of reporting: SECOM CO., LTD.

2021
(Years ended March 31)

SECOM REPORT 2021

41

ESG Initiatives

Advancing Diversity

value, we actively promote diversity in our labor force,
including by advancing career opportunities for female
employees. In 2017, we established the Declaration of
Promoting Diversity and Inclusions, and assigned diversity
and inclusion staff to the Human Resource Department. We
currently promote the creation of positive work environmentsthat maximize the capabilities of all employees regardless ofgender, nationality, age, physical ability, sexual orientation, or
gender identity.
In April 2021, we formulated a new action plan foradvancing career opportunities for female employees. We
continue working to create positive working environments
for women, including by actively fostering female leaders,
expanding the scope of jobs available to female employees,
taking steps to prevent harassment, and promoting work-lifebalance.
Labor Force by Gender

As of March 31, 2021

Male

FemaleExecutive management

90.3%

9.7%

Other

79.4%

20.6%

Total

82.9%

17.1%

SECOM Life Support Program: Allows employees toexemption (shorter working hours) for nursing care:

temporarily change work style and/or location to which

Full leave or adjusted working hours for up to six months

they are assigned to provide childcare or nursing care or to

Action Plan for Fostering Career Opportunities for
Female Employees(maximum of 186 days) for employees providing nursing

accompany a spouse who has been transferred overseas

care to a family member wishing to return to work full-timeand provides support for long-term career advancement

Period:April 1, 2021–March 31, 2026

after conclusion of nursing care provision

Job Return Program: Enables people who have left

Recognizing the importance of welcoming a broad spectrumof individuals with wide-ranging ideas to the creation of new

Nursing care leave or change in working hours/

employment at SECOM for unavoidable reasons such as

Objectives:• Increase the number of female employees at manager
level*1 to at least 200 and at supervisor level*2 to atleast 400.
*1 Manager level: Corporate headquarters, regional headquarters
and regional office manager or higher*2 Supervisor level: regional headquarters and regional officesupervisor• Expand the scope of jobs available to women andincrease the number of female employees by morethan 500 from 2,396 in 2016 (the year the previous
management plan was formulated).
• To prevent harassment, provide online training for all
employees once annually and training for newly
appointed regional office general managers at leastonce.
• Extend the average length of service of female
employees by more than one year from 12.2 years in
the fiscal year ended March 31, 2020.

childbirth, childcare or nursing care to apply to return to work

Percentage of Annual Paid Vacation Days Taken by
Employees

Employees Taking Childcare Leave(%)(Number of people)

70

200

58.8

60

53.3

53.2

150

100

50

(Number of people)

40

Total
(left scale)

154

138

30

127
22

Male
employees(right scale)

20

9

10

2021

2019

2020

(Years ended March 31)*Scope of reporting: SECOM CO., LTD.

50

10

0

40

2019
*Scope of reporting: SECOM CO., LTD.

2020

0

2021
(Years ended March 31)• Increase the percentage of annual paid vacation days
taken by employees by more than 10% from 53.2% in
the fiscal year ended March 31, 2020.

Dialogue with employees*Scope of reporting: SECOM CO., LTD.

Promoting work–life balance

was established in 1964, and became a union shop, meaningorganization that is impervious to the impact of socialthat in principle employees automatically become unionchange and the competitive environment. We are thus

members when they are hired. As a consequence, our union

working to create a virtuous circle, recognizing themembership rate for eligible employees is 100%.

We view work–life balance, including sufficient physical andMaternity leave: Available for the six weeks prior to andimportance of enabling employees who share SECOM’s

We place a priority on dialogue between labor andmental rest and a fulfilling private life as essential to theeight weeks after giving birth; an additional two weeks is

Philosophy to demonstrate their full potential, which helps

management. With the aim of boosting employee morale,ability to approach one’s work with energy and focus. In

available to employees who wish to start their maternity

raise the quality of the services and products we provide,building a vibrant and healthy organizational culture andaddition to actively encouraging employees to take annual

leave earlier

thereby enhancing customer satisfaction and earning the

maximizing organizational energy, the management

paid vacation days, we have established vacation and leave

Childcare leave: Can be taken by both female and maletrust of society, which in turn increases employees’ job

representatives, including the President and Representative

systems in line with which we promote ongoing efforts to help

employees up until the day before the child’s third birthday

satisfaction. Since 2016, we have conducted an annual

Director, meet monthly with SECOM Lively Union to exchange

employees achieve a balance between their careers andChange in working hours/exemption (shorter working

anonymous employee job satisfaction survey. In the fiscal

views. Discussions are also held at SECOM Group companies

private lives and enhance employee retention.

hours) for childcare: Available within certain restrictions

year ended March 31, 2021, the response rate for this survey

and branches across Japan to address issues such as

on request to employees who are pregnant or have

was 77.9%.

improving workplace environments and operating procedures

Flex vacation: Enables employees to take 10 consecutive

children who have not yet entered the second grade ofReflecting our fundamental belief that the growth of ourvacation days annually, in theory at any time during the year

elementary school (exceeds legal requirement, which is

employees is inextricably linked to our prosperity, we signed

Union also exchanges views with management throughRefresh vacation: A two-week vacation available tochildren under the age of three)a union membership qualification agreement with SECOM

meetings with employees on organizational culture and theLively Union (the SECOM Employee Union Federation), which

SECOM Employee Central Council.

employees every 10 years

42

We seek to achieve sustainable growth as a strong, flexible

SECOM REPORT 2021

and ensuring occupational health and safety. SECOM Lively

SECOM REPORT 2021

43

ESG Initiatives

Outline of corporate governance system

Governance initiatives
Relevant SDGs

Central themes

Summary
Independent oversight of management and ensure proper businessexecution while working to actively disclose information toshareholders and other stakeholders

Corporate governanceEfforts to improve compliance by promoting strict adherence to the
SECOM Group Code of Employee Conduct

Compliance

Information security/data security

Promotion of information security through establishment of the SECOM
Group Information Security Basic Policy and creating and operating arobust information security system

We are a company with an Audit & Supervisory Board. The

discharge of their duties. We believe that this enables us to

Board of Directors, which includes four outside members,

conduct independent oversight of management and ensure

determines overall management and business execution

appropriate business execution.

policies and supervises the execution of duties by directors.

The Nomination and Compensation Committee has been

Executive officers, led by the President and Representative

established as a discretionary committee of the Board of

Director, are responsible for business execution. Under our

Directors. This committee, which is responsible for presenting

corporate governance system, the Audit & Supervisory Board,candidates for the position of director to the Board of Directors

which includes three outside members, and the Board ofand for ensuring the appropriateness of remuneration for

Directors coordinate with the internal audit departments todirectors, comprises seven directors, four of whom areaudit and supervise directors’ and executive officers’

outside.

Corporate governance organization

Basic philosophy

General Meeting of Shareholders

With the aim of earning the continued support of our customers,

In line with Japan’s Corporate Governance Code and atshareholders, clients, employees, local communities and otherthe direction of top management, outside members of the

stakeholders as a company with value that is worthy of trust,

Board of Directors and Audit & Supervisory Board provide

we strive to maximize corporate and shareholder value overindependent oversight of the management team’s

the medium to long term and recognize the importance ofperformance in a manner that takes into account thefulfilling our responsibilities as a corporate citizen andinterest of stakeholders and ensures the appropriate

achieving sustainable growth and development.

execution of business activities. We also work actively todisclose information to shareholders and other stakeholders
and strengthen our compliance framework.

Establishment ofcorporate governancesystem
Separation of management
and execution
Number of directors designatedin the Articles of Incorporation

2000

2010

Reporting on important matters

Chairman and
Representative Director
Internal audit departments

Legal affairs departments
Coordination

Enhancement of compliance/internal auditing

Executive Officers
Deliberation

Organizational Culture
Committee

Audit by independent
public accountants
Accounting audit

Up to 2004: Maximum of 40 From 2005: Maximum of 20

2000–2001: 28–29
From 2004: 10–13
2002–2003: 22–23

SECOM REPORT 2021

Office of Audit & Supervisory Board:
Three employees(Operational, accounting andcompliance audits)

2004: Institutes an executive officer system

Up to 2010: 4 From 2011: 5

Number of outside
directors

44

Audit & Supervisory Board(Five members,
three of whom are outside)

2010: Establishes the SECOM Group Management Committee

Number of directors

Remuneration for/appointment of directors

Determination/submission ofdecisions regarding remuneration

Nomination
andCompensation
Committee

Selection/oversight2020

2006: Formulates basic rules of management for SECOM Group companies

Up to 2003: 2 years From 2004: 1 year

Number of outside
auditors

Authorization/consultation
regarding remuneration

1986: Creates SECOM’s Philosophy

Term of service of
directors

Number of auditors

Board of Directors(11 members,
four of whom areoutside directors)

Appointment/dismissal
Proposal of candidates forthe position of director

President andRepresentative Director

Initiatives to strengthen corporate governance1986

Appointment/dismissal

2013–2015: 2
From 2020: 4
2016–2019: 3
Up to 2002: 2 From 2003: 3

2016: Establishes Nomination and Compensation Committee
2017: Adopts performance-linked remuneration system

Board of Directors

Executive Officers

Audit & Supervisory Board

The Board of Directors comprises 11
directors and in principle meets monthly,with five members of the Audit &Supervisory Board also in attendance. The
Board of Directors is responsible for
deciding overall management policies andbusiness execution policies, as well as formonitoring the performance of duties bydirectors, and strives to promote theactive exchange of opinions with the aimof ensuring effective and swift decision
making. Six of the 11 members are
responsible for business execution, withthe remaining five members (the founder
and the four outside directors) having no
involvement.

We have adopted an executive officers
system, whereby the Board of Directors is
responsible for decision making and theexecutive officers are responsible forbusiness execution. This was done withthe aim of strengthening field divisions
and enhancing customer service systems
by clarifying responsibilities and authority
and expediting business execution. We
currently have 31 executive officers, six ofwhom are also directors.

The Audit & Supervisory Board comprises
five members, two of whom are full-timeand three of whom are outside. In
principle, the Audit & Supervisory Board
meets monthly. Individuals well-versed inour businesses and internal affairs, aswell as in finance and accounting, areappointed to serve as full-time members,
while individuals who are independent of
the management team, have extensive
knowledge of corporate management,
legal, financial and other matters and arecapable of providing effective oversightand monitoring of the management team,are appointed to serve as outside
members.

SECOM REPORT 2021

45

ESG Initiatives

Nomination of candidates for appointment to the Board ofaudits of our overall business activities, as well as those of

the Office of Audit & Supervisory Board Members) thatindependent oversight of management performance in a

Directors and the Audit & Supervisory Board

subsidiaries and affiliates, in accordance with annual audit

operates independent of day-to-day operations and a processmanner that takes into account the interests of stakeholders.

In accordance with the policy for appointment set forth byplans.

(including periodic meetings between the President andWe appoint outside directors and outside Audit &Representative Director, among others, and the Audit &Supervisory Board members on the basis of pertinent

the Board of Directors, candidates for appointment to theBoard of Directors and the Audit & Supervisory Board are

Regular meetings between the President and Representative

Supervisory Board members). This ensures that Audit &requirements set forth in Japan’s Companies Act and thedecided through deliberation by the Board of Directors.

Director and Audit & Supervisory Board members

Supervisory Board members’ objective and neutral opinions

standards concerning independence set forth by financial

Candidates for the Board of Directors are nominated from

Audit & Supervisory Board members hold regular (monthly)

are reflected promptly in operations. As a consequence, we

instruments exchanges.

among candidates determined through discussion by themeetings with the President and Representative Director,

believe that we fulfill our responsibility to conduct

Nomination and Compensation Committee, the majority ofduring which they exchange opinions on important

whom are outside directors. Candidates for the Audit &management-related issues, including the results of audits,

Supervisory Board are nominated with the agreement of theto ensure common understanding.

Outside directors and outside Audit & Supervisory Board members

Audit & Supervisory Board.
Meetings between Audit & Supervisory Board members
Internal audits and cooperation among board members

and accounting auditorsand offices

Audit & Supervisory Board members meet regularly (sixAudits by Audit & Supervisory Board members

times annually) with the accounting auditors, as well as

Audit & Supervisory Board members attend important

additional meetings as necessary, for the purpose of

meetings, including those of the Board of Directors, toexchanging opinions and information. Audit & Supervisoryexchange opinions on overall corporate management, asBoard members receive explanations and exchange opinions

well as to collect reports on the discharge of duties fromregarding annual audit plans and audit results. If necessary,

directors and other pertinent individuals and conduct audits

Audit & Supervisory Board members also act as witnesses

focused on the possible occurrence of violations of laws,

during audits conducted by the accounting auditors at

regulations, the Articles of Incorporation and/or shareholders’remote locations and during audit reviews (16 times in theinterests. The Audit & Supervisory Board also conducts

fiscal year ended March 31, 2021).

Principal Activities of Audit & Supervisory Board members

Collaboration with internal audit and other departmentsin the Fiscal Year Ended March 31, 2021

Audit & Supervisory Board members hold regular (monthly)

Participation in meetings of the Board of Directors

100%

Participation in meetings of the Audit &Supervisory Board

100%

Name

Principal activities

Takaharu
HiroseMr. Hirose offers advice and recommendations at meetings of the Board of
Directors based on experience and insights gained in the foundation andmanagement of multiple enterprises and industry organizations. In addition, heparticipates in deliberations of the Nomination and Compensation Committee as amember thereof. Through these activities, he performs his supervisory function
as an outside director adequately.

Hirobumi
KawanoMr. Kawano offers advice and recommendations at meetings of the Board of
Directors based on experience and insights gained through the holding ofimportant positions in government. In addition, he participates in deliberations of
the Nomination and Compensation Committee as a member thereof. Throughthese activities, he performs his supervisory function as an outside director
adequately.

HajimeWatanabe

Mr. Watanabe offers advice and recommendations at meetings of the Board of
Directors based on experience and insights gained through his many years ofexperience in corporate management. In addition, he participates in deliberationsof the Nomination and Compensation Committee as a member thereof. Throughthese activities, he performs his supervisory function as an outside director
adequately.

Miri
Hara

Ms. Hara offers advice and recommendations at meetings of the Board of
Directors based on experience and insights gained as a corporate officer and a
tax accountant. In addition, she participates in deliberations of the Nomination
and Compensation Committee as a member thereof. Through these activities, she
performs her supervisory function as an outside director adequately.

HidekiKato

Mr. Kato offers advice and recommendations at meetings of the Board of
Directors based on experience gained through the execution of national policies
and insights gained as a result of his accomplishments at a policy think tank. He
also asks questions and states opinions to clarify issues.

MakotoYasudaMr. Yasuda offers advice and recommendations at meetings of the Board of
Directors based on experience and insights gained in the management of a global
enterprise. He also asks questions and states opinions to clarify issues.

SetsuoTanakaMr. Tanaka offers advice and recommendations at meetings of the Board of
Directors based on experience and insights gained through the holding ofimportant positions in government. He also asks questions and states opinions toclarify issues.

Outsidedirectors

meetings with the Internal Audit and ComplianceDepartment, during which they receive reports andexchange opinions on the results of internal audits and, as
appropriate, receive reports on inspections of subsidiaries

Information sessions with directors and otherexecutives of the parent company, subsidiaries
and affiliated companies

63 timesfrom and exchange opinions and information with the Group
Governance Department. If necessary, to ensure theefficiency of audits, Audit & Supervisory Board members ask

Audits conducted by Audit & Supervisory Board
members at remote locations

55 locations

the internal audit departments to conduct investigations.

Outside directors and outside Audit & Supervisory Board members
We appoint individuals who have extensive knowledge of46

We appoint Audit & Supervisory Board members who

corporate management to serve as outside directors, thereby

have a wealth of knowledge of corporate management, legal,

incorporating a broad range of external perspectives notfinancial and other matters (including three outside members,

constrained by the internal affairs. We thus have a structure

who are essentially independent of the management team).

that ensures the transparency and objectivity of management.

We have also established an auditing organization (including

SECOM REPORT 2021

OutsideAudit &
Supervisory
Board
members

Attendanceat Board of
Directors’
meetings

10
10

10
10

10
10

8
8

Attendanceat Audit &Supervisory
Board meetings

—

—

—

—

10

11

10

11

10

11

10

11

10

11

10

11

Notes: 1. Information on attendance at meetings of the Board of Directors and Audit & Supervisory Board is for the ﬁscal year ended March 31, 2021.
2. Miri Hara was elected and assumed the position of outside director at the ordinary general meeting of shareholders held on July 25, 2020. Accordingly, theﬁgures for her attendance are for meetings of the Board of Directors held on or after that date.

SECOM REPORT 2021

47

ESG Initiatives

Remuneration for directors and Audit & Supervisory Board members

Evaluation of the Board of Directors’ effectivenessRemuneration for directors consists of pecuniary remuneration

well as on job responsibilities and years of service. The

Evaluation process

matters is made to the Board of Directors subsequent to(fixed monthly salary and bonuses) and share-based

relative proportion of fixed monthly salary, bonuses, andThe effectiveness of the Board of Directors is evaluatedresolution. In 2021, both outside directors and outside

remuneration (shares with restrictions on transfer). Outside

shared-based remuneration paid to directors (excluding

annually. In the period under review, a survey was conductedAudit & Supervisory Board members actively madedirectors receive fixed salary only. The fixed monthly salaryoutside directors) is approximately 80:15:5.

in January 2021 and responses were collated by the Board’scomments and expressed the opinion that further

secretariat in early March. Findings were subsequently

improvements in the administration of the Board of Directors

discussed by the Board.

had been seen since the 2020 survey. Various opinions were

portion of pecuniary remuneration paid to directors and theRemuneration for Audit & Supervisory Board members,

share-based remuneration paid to directors (excludingwhich comprises pecuniary remuneration only, is determinedoutside directors) are determined comprehensively inthrough discussion involving Audit & Supervisory Board

consideration of job responsibilities and years of service, as

members in amounts commensurate with job responsibilities.

Summary of findings

created for free debate, thereby invigorating discussion, as

well as the performance of the Company. Bonuses paid to

Remuneration for Audit & Supervisory Board members is set

Composition of the Board of Directors

well as for further communication with outside directors.

directors (excluding outside directors) are determined based

within the maximum limit resolved at the Ordinary General

The opinion was expressed that the diversity of the Board of

on consolidated operating profit, a key management target, asMeeting of Shareholders.

Directors and the balance between execution and oversightOversight function of the Board of Directors

are suitable and that the Board is an appropriate size toMatters handled by the Board of Directors in 2020 wereensure active discussion and swift decision making. While it

selected appropriately, based on the Rules of the Board of

was acknowledged that the appointment of a female director

Directors, and the opinion was expressed that discussions

has improved gender diversity, and that the percentage ofon management policies and corporate philosophy wereoutside directors has increased, constructive views were

rigorous. In addition, constructive views were expressedalso expressed regarding further diversification of theregarding concrete discussions on preparations for a post–

Board’s composition in terms of gender and other

COVID-19 world, as well as the progress of discussions—considerations, including the need to promote female

currently being undertaken from a medium- to long-term

directors from within.

perspective—on changes in the operating environment andalso expressed, including that opportunities should beRemuneration for directors and Audit & Supervisory Board members (Fiscal year ended March 31, 2021)
Breakdown of total remuneration (Millions of yen)
Position

Total
remuneration(Millions of yen)Basicremuneration
Fixed salary

Directors (excluding outside
directors)

366

293

Performance-based
remuneration
Stock options—

Nonpecuniary
remuneration

Bonus
55

Number ofentitled
individuals

Restricted stock
17

7

Audit & Supervisory Board
members (excluding outside
members)

45

45

—

—

—

2

Outside directors

39

39

—

—

—

4

Outside Audit & Supervisory
Board members

25

25

—

—

—

3

Total

476

403

—

55

17

16

related risks arising from technological innovation and a
Administration of Board of Directors’ Meetings

declining labor force.

The Board of Directors meets once monthly in principle toenable swift discussion and resolution of critical matters. To

Future initiatives

ensure that directors and Audit & Supervisory Board

To further enhance corporate value and realize an evenmembers are able to make appropriate decisions, mattersmore effective Board of Directors, we will continue todeemed particularly critical are discussed by the Board ofpromote efforts to improve the Board’s functions based on

Note: The target for consolidated operating proﬁt for the ﬁscal year ended March 31, 2021, was ¥124,000 million, while the actual result was ¥136,925 million.
(Japanese GAAP)

Directors prior to resolution and a progress report on thoseevaluations and opinions expressed.

Philosophy regarding the diversity and size of the Board of Directors

Status of strategic shareholdings

The Board of Directors consists of internal directors, who are

and the number of members is appropriate to facilitate

Policy on shareholdings

Verification of the rationality of shareholdings

familiar with SECOM’s businesses and have diverse

discussions and resolutions of substance. We will continue

The Company may, after comprehensive examination,

The Board of Directors assesses the benefits and risks arisingknowledge, and several outside directors with extensive

working to enhance the effectiveness of the Board ofacquire and/or hold listed shares for the purpose offrom each holding annually. In addition to confirming theinsight in corporate management and other areas. Diversity

Directors by promoting further diversity and ensuring thebusiness participation, collaboration, capital or businessgrowth potential and profitability of each investee company,in terms of gender and international experience is ensured

appropriate size of the Board.

tie-up, business incubation, or the maintenance orgiving consideration to status of transactions, financial

expansion of transactions involving the Company’s services

condition, and operating performance, we comprehensively

and products.

examine the appropriateness of the holding and determine
whether it should be maintained.

48

SECOM REPORT 2021

SECOM REPORT 2021

49

ESG Initiatives

Directors, Audit & Supervisory Board Members and Executive Officers

Compliance(As of July 31, 2021)

Directors

Basic philosophy
We provide security services, the objective of which is to protect

our basic policy has always been to promote systematicthe lives and assets of our customers from legal violations ormeasures to ensure unqualified compliance with the letter

malfeasance by third parties. As such, we recognize that it isand spirit of the law.

essential that we not only abide by the Constitution of Japan but

Makoto Iida

Yasuo Nakayama

Ichiro Ozeki

Founder

Chairman and
Representative Director

President andRepresentative Director

The SECOM Group Code of Employee Conduct prescribes

also operate in a manner that complies with the letter and thespecific standards for employee behavior and ethicalspirit of pertinent laws and regulations.

principles that must be observed by all executives andBecause they are in the position of regulating others,

employees in their relationships with stakeholders, including

employees must also conduct themselves in a disciplined

communities, customers and suppliers. The code, which ismanner, discharging their duties in good faith and inalso published in the form of a pocket-sized guide, thus

compliance with the letter and the spirit of the law, to earn

serves as a universal and timeless template for everyone in

the trust of customers, which is critical to the security

the SECOM family. Standards govern, among others,

services business. Since our establishment, we have viewed

deterring relations with antisocial elements, prohibiting ofcompliance as a matter of utmost importance. Accordingly,

corruption and bribery and complying with related laws.

System for promotion and administration
Yasuyuki Yoshida

Tatsuro Fuse

Tatsuya Izumida

Tatsushi Kurihara

Senior Executive
Director

Executive Director

Director

Director

Our approach to compliance is notable in that it does not

related departments. When such laws and regulations are

involve the establishment of a dedicated system overseen byrevised, executive officers are responsible for determining

a specific department or director, but rather positions eachappropriate responses, including examining the need toand every employee on the front line of promoting the SECOM

amend the SECOM Group Code of Employee Conduct and,Group Code of Employee Conduct, including standards

here again with cooperation of the Legal Department andgoverning compliance, and ensuring ethical behavior.

other related departments, presenting related proposals toCompliance is the foundation of each employee’s day-to-

Audit &
Supervisory
Board
Members

Takaharu Hirose

Hirobumi Kawano

Hajime Watanabe

Miri Hara

Outside Director

Outside Director

Outside Director

Outside Director

Takayuki Ito

Executive TeamThe duties of the internal audit departments, i.e., theregarding the SECOM Group Code of Employee Conduct andInternal Audit and Compliance Department and the Groupoverseeing the actions of employees to ensure compliance.

Governance Department, include inspecting each group,

Executive officers are responsible for providing control for

department and subsidiary, providing guidance on addressing

the department they supervise, while the President andmatters requiring corrective action, and reporting inspection

Representative Director provides control for the company as

results to the President and Representative Director, as wella whole. Each executive officer must also have a thoroughas to relevant executive officers.

Executive Officers

Koji Kato

Yasuo Nakayama

Kenichi Furukawa

Yoichi Sugimoto

Osamu Nagai

Hideki Kato*

Chairman and
Representative Director

Managing Executive
Officer

Executive Officer

Executive Officer

Makoto Yasuda*

Sumiyuki Fukumitsu

Atsushi Komatsu

Ichiro Ozeki

Masahiro Takeda

Executive Officer

Executive Officer

President andRepresentative Director

Managing Executive
Officer

department he or she supervises, for which he or she may

Setsuo Tanaka*

Kensuke Shindo

Kazuhiro Mitomo

Executive Officer

Executive Officer

seek the assistance of the Legal Department and other*Outside

Yasuyuki YoshidaToshiaki Mizuno

Senior Executive
Director

Managing Executive
Officer

Yasufumi Kuwahara

Takehiko Senda

Executive Officer

Executive Officer

Tatsuro Fuse

Shokichi Ishimura

Noriyuki Fukuoka

Takashi Nakada

Executive Director

Managing Executive
Officer

Executive Officer

Executive Officer

Takeshi Akagi

Michiyoshi Morita

Director

Keitaro Arai

Executive Officer

Executive Officer

Tatsushi Kurihara

Managing Executive
Officer

Sadahiro Sato

Makoto Inaba

Executive Officer

Executive Officer

Osamu Ueda

Seiya Nagao

Toshinori Sugimoto

Executive Officer

Executive Officer

Noriyuki Uematsu

Satoshi Araki

Executive Officer

Executive Officer

Director

Managing Executive
Officer

Yoshinori Yamanaka
Managing Executive
Officer

50

day work. Managers are responsible for providing guidanceDirectors

Tatsuya Izumida

SECOM REPORT 2021

the President and Representative Director.

knowledge of the laws and regulations pertinent to the

SECOM REPORT 2021

51

ESG Initiatives

Information and Data Security

Whistle-blowing system
The SECOM Group Code of Employee Conduct requires

Policy and system for promoting information security
With the rapid spread of IT, information security risks haveinformation security. When we outsource work, we enter into

employees to report to their superior should they discoverreports are kept confidential. As long as a report has been

Whistle-blower’s names and the content of whistle-blower

risen significantly, as can be seen from the increasing

appropriate contracts and provide guidance and supervisionthat an employee, executive or other individual affiliated withmade in good faith, whistle-blowers are protected from any

sophistication of cyber attacks. Any leaks of personal or

to subcontractors. We have put an executive officer in charge

a subcontractor has engaged in or appears likely to engage inadverse impacts even if the report is not borne out by theconfidential information entrusted to us by a customer hasof information security for the Group as a whole. In addition,an action that violates the code. In the event that no corrective

subsequent investigation. Pertinent executive officers are

the potential to seriously hinder our ability to provide security

executive officers in charge of each business have been mademeasures are taken after a report has been made, or if

obliged to swiftly assess the results of investigations and takeservices, damage or adversely impact the customer, andresponsible for information security–related matters for theircircumstances make reporting to a supervisor difficult,appropriate corrective measures to resolve the situation.

result in the forfeiture of our brand image and reputation forparticular business, as well as for collaborating with theemployees may report directly to the Internal Audit andWhistle-blowers are notified confidentially of the nature andreliability. Accordingly, we have created and maintain a robust

executive officer in charge of information security to report on

Compliance Department via the Hot Helpline. Executives andoutcome of investigations.

information security system.

issues and presenting proposals to the President andemployees of subsidiaries may report violations via the Group
Head Office Helpline directly to the Group Governance

We have also established the SECOM Group Information
Security Basic Policy, to guide our efforts to promote stringent

Whistle-Blower Reports Received

Department.

Representative Director.

Year ended
Year ended
Year ended
March 31, 2019 March 31, 2020 March 31, 2021

Number ofreports

48

56

74

Organizational Culture Committee

Reducing information security risk
We have implemented powerful security measures to reduce

Information system controls and audits are therisks associated with information leaks and cyber attacks. We

responsibility of subsidiary Secom Trust Systems and arealso work to ensure that all employees of the SECOM Group,

conducted in accordance with Japan’s Information Security

The Organizational Culture Committee is a standing

been reported to the President and Representative Director

regardless of employment format, comply fully with ourManagement System (ISMS) standards under the guidance ofcommittee chaired by the President and Representativeby the Internal Audit and Compliance Department or the

information security rules, which include rules governing thethe executive officer in charge of information security. As well

Director that meets periodically or as necessary at theexecutive officer in charge. If necessary, the committee

use of personal computers and cellular telephones that must

as conducting regular assessments of vulnerability todirection of the President and Representative Director, andexamines proposals for modifying the system forbe protected for confidentiality reasons, the storage andexternal cyber attack risks, we monitor information systems

examines important organizational culture-related issues andadministering compliance or amending the SECOM Group

carrying of information, and steps to be taken when an

around the clock to ensure we are prepared to respond to

determines important official commendations andCode of Employee Conduct. All such proposals must be

information security–related incident arises or a violation ofrisks, including those related to large-scale disasters andpunishments.

deliberated by the Organizational Culture Committee,

any other information security rule is discovered.

cyber attacks.

The Organizational Culture Committee also deliberates onmatters related to compliance with and the administration ofreviewed by Audit & Supervisory Board members andapproved by the Board of Directors.

Protecting personal information

the SECOM Group Code of Employee Conduct that have

Global compliance training

The SECOM Group Code of Employee Conduct states that all

information and for complaints and consultations regarding

information obtained in the course of business is confidential

our system for managing and protecting personal information,and must not be leaked, a stipulation with which all executives

facilitating swift and appropriate responses. The parent

We have translated SECOM’s Philosophy and the SECOM

across the global SECOM Group. We also provide training toand employees must strictly comply. We strive to prevent

company and Secom Trust Systems have earned certification

Group Code of Employee Conduct, which outlines the basic

the senior management of overseas Group companies on key

leakage, loss and damage through employee training andunder Japan’s Privacy Mark, which is granted to organizations

concept and specific standards for employee behavior, into

aspects of compliance, including observance of laws andefforts to promote awareness regarding the treatment ofthat take appropriate measures to protect personal information.

multiple different languages and work to advance awarenessregulations, the prevention of bribery and internal controls.

personal information, as well as by ensuring stringent
management.
All employees are required to participate in e-learning

Thorough information security(Year ended March 31, 2021)

Annual e-learning and testing to confirm understanding andprograms and tests annually to confirm understanding of andadherence (participation: 100% of employees)

adherence to basic procedures and rules. The internal audit

Voluntary audits (implementation:

departments conduct periodic inspections of the handling of

100% of sites)

personal information, data management and access control at

No leaks of informationeach SECOM Group site. In addition, we have established a*Scope of reporting: SECOM CO., LTD.

contact point for queries regarding the handling of personal

52

SECOM REPORT 2021

SECOM REPORT 2021

53

ESG Initiatives

Greenhouse Gas Emissions: Actual Results and Medium- to Long-Term Targets(t-CO2)200,000

Base year

180,000

188,324

4.1% reduction
183,920

180,608
45% reduction by
the ﬁscal year
ending March 31,
2031

160,000

Environmental Initiatives

140,000
120,000

Relevant SDGs

Central themes

Prevention of global warming

Summary
Evaluation and management of the progress of environmental
conservation initiatives against environmental key management
indicators

100,000

103,578

80,000

2019

2020

2021

2031

2045

(Actual)(Actual)(Actual)(Target)(Target)Note: The market-based method used to calculate emissions.

Reduction of environmental impact
across the supply chain

Efforts to grasp and reduce greenhouse gas emissions (Scopes 1, 2 and
3) and promote environment-friendly design

Response to the recommendationsof the TCFD

Evaluation of risks and opportunities based on climate change scenario
analysis and promotion of disclosure

Target for 2045:
0(Fiscal years ended/ending March 31, except for 2045)

Reduction of environmental impact across the supply chain
We continue working to reduce greenhouse gases acrossour supply chain.
Efforts to identify and reduce greenhouse gas emission(Scopes 1, 2 and 3)
We request suppliers to calculate and report greenhouse gas
emissions and water usage, among others, for products andservices supplied to the SECOM Group.

Prevention of global warming
We have established an environmental philosophy and basic
environmental policy, in line with which we incorporate
initiatives aimed at resolving environmental issues with theaim of achieving sustainable development. We evaluate andmanage the SECOM Group’s progress in promoting these

Long-term targets
Scope 1 and 2:
Reduction of greenhouse gas emissions to zero by 2045
Scope 3:
Reduction of greenhouse gas emissions to zero by 2050

Efforts to promote environment-friendly design

Example of a System with a Reduced
Environmental Impact
HANKS IIIs Security System for Financial Institutions
Consumption ofelectric power: –57%
Volume:

–55%

Mass:

–66%

We have distributed green engineering guidelines to suppliers
and work to eliminate harmful chemical substances, reduce
consumption of electric power, conserve resources, extend theuseful life of products and promote recycling.

initiatives over the long term against seven major
environmental management indicators.

Environmental management key performanceindicators
1. Greenhouse gas emissions (Scopes 1 and 2)
2. Greenhouse gas emissions across the supply chain(Scope 3)
3. Reduction of greenhouse gas emissions asagainst base year (%)
4. CO2 emissions per unit of production (emissions
intensity)
5. Electricity used and percent accounted for by thatgenerated using renewable energy
6, Consumption of fuel by vehicles
7. Industrial waste and resources with market value
Scope 1: Direct emissions (including those from the combustion ofgasoline by vehicles, use of diesel and use of kerosene)
Scope 2: Indirect emissions (including those from the consumptionof purchased electric power, cold and hot water, andsteam)
Scope 3: Other indirect emissions (those not covered in Scope 1 or
2, from the activities of other companies up and down the
supply chain

54

SECOM REPORT 2021

Medium-term targets
Scope 1 and 2:
45% reduction in greenhouse gas emissions from the fiscal year
ended March 31, 2019, by the fiscal year ending March 31, 2031

Response to the recommendations of the TCFD
In July 2019, we declared our support for the Task Force on

We recognize that the price of fuel consumed by vehicles

Climate-related Financial Disclosures (TCFD), pledging toused in our security services business and climate change–

Scope 3:40% reduction in greenhouse gas emissions from the fiscal year
ended March 31, 2019, by the fiscal year ending March 31, 2031

proactively disclose information on the financial impacts ofrelated risks affecting our nonlife insurance and data center

risks and opportunities associated with climate change onservices businesses will increase, but we also understandour future business activities in line with TCFD recommendations.

that shifting customer needs will yield opportunities to

In businesses such as security services, data center

expand demand for new services. Accordingly, we will

The above emissions reduction targets, formulated in May

services and medical services, the ability to provide stablepromote strategies that seek to capitalize on opportunities

2021, have been certified under the Science Based Targets

and uninterrupted services is critical. To maintain services

while remaining mindful of the potential impact of risks on

initiative (SBTi), which seeks to drive climate action in theand systems at an acceptable level, we have established aour operations.

private sector. We have also joined the RE100 (forRisk Committee and assess risks from multiple“Renewable Electricity 100%”), a global initiative, with theperspectives, including scope of impact, scale, anticipatedobjective of transitioning fully to electricity generated using

monetary cost of damage, urgency and frequency of

renewable energy by 2045.

occurrence, based on the results of Companywide risk
analysis. For example, we are using a scenario that assumes
we suffer damage due to a natural disaster to explore
measures to minimize destruction and have created a

Note: The TCFD was established in 2015 under the auspices of the Financial
Stability Board (FSB) with the goal of developing basic disclosure
recommendations to provide information on the potential impact ofclimate change on their proﬁtability and cash ﬂows.

management system whereby a report is made to the Boardof Directors if the seriousness of damage warrants it.

SECOM REPORT 2021

55

Financial Information and References

ESG Initiatives

Financial Review

SASB Index

We have prepared a report under Sustainability Accounting Standards Board (SASB) guidance for theProfessional & Commercial Services sector, which most closely aligns with the business of SECOM. This

Overview

report can be accessed from the IR section of our corporate website.

In the fiscal year ended March 31, 2021, SECOM CO., LTD. andits consolidated subsidiaries (collectively, “the Company”)
sought to provide high-quality services and products that
respond to the diverse needs of customers in its core security
services segment, as well as in its fire protection services,
medical services, insurance services, geospatial information
services, BPO and ICT services, and real estate and otherservices segments.
Notwithstanding the negative impact of COVID-19 incertain areas of the security services, fire protection services
and medical services segments, consolidated net sales andoperating revenue in the period under review edged up 0.2%,
or ¥2.7 billion, to ¥1,135.3 billion, and operating income rose
4.8%, or ¥6.2 billion, to ¥135.8 billion. This was due to anincrease in the BPO and ICT services segment and to net
realized investment gains (including a gain on other-thantemporary impairment of investment securities) in theinsurance services segment, compared with net realized
investment losses in the previous fiscal year. Despite a loss
from discontinued operations, net of tax, net income attributable
to SECOM CO., LTD., advanced 3.2%, or ¥2.8 billion, to ¥89.9
billion, underpinned by an increase in operating income, as well
as by a gain on other-than-temporary impairment of investment
securities, compared with a loss in the preceding period.

SECOM’s SASB Index
Professional & Commercial Services Sector Sustainability Indicators
Topic

Code

Workforce Diversity &Engagement

Description of approach to identifying and addressing data security risks

SV-PS-230a.2

Description of policies and practices relating to collection, usage, and retentionof customer information

SV-PS-230a.3(1) Number of data breaches, (2) Percentage involving customers’ confidential
business information or personally identifiable information, (3) Number ofcustomers affected

SV-PS-330a.1

Percentage of gender and racial/ethnic group representation for (1) executive
management and (2) all other employees

SV-PS-330a.2(1) Voluntary and (2) involuntary turnover rate for employees

SV-PS-330a.3

Employee engagement as a percentage

SV-PS-510a.1

Description of approach to ensuring professional integrity

SV-PS-510a.2

Total amount of monetary losses as a result of legal proceedings associatedwith professional integrity

Professional Integrity

Topic

Accounting Metric

SV-PS-230a.1

Data Security

Code

SV-PS-000.A
Activity metrics

SV-PS-000.B

Activity Metric

Data*

Number of employees by:(1) full-time and part-time(1) Full-time employees:

14,602(2) temporary(2) Temporary employees:

1,332(3) contract(3) Contract employees:

1,688

Employee hours worked, percentage
billable

Employee hours worked:

29,866,147

Percentage billable:

N/A*Data for “Activity metrics” is for SECOM CO., LTD., and is as of March 31, 2021, or for the fiscal year ended March 31, 2021. Because billing for electronic security
services, our principal business, is based on fixed monthly fees, “percentage billable” is not applicable.

56

Operating Results

SECOM REPORT 2021

Net Sales and Operating Revenue
Consolidated net sales and operating revenue in the period
under review edged up 0.2%, or ¥2.7 billion, to ¥1,135.3 billion,
notwithstanding the negative impact of the pandemic oncertain areas of the fire protection services, security services
and medical services segments, and reflected an increase in
the BPO and ICT services segment, together with net realized
investment gains (including a gain on other-than-temporary
impairment of investment securities) in the insurance services
segment, compared with net realized investment losses in
the previous fiscal year. (For further information, please see
Segment Information below.)
Costs and Expenses
Total costs and expenses slipped 0.3%, or ¥3.5 billion, to ¥999.5
billion. Cost of sales was down 0.6%, or ¥5.0 billion, to ¥790.3
billion, and was equivalent to 69.6% of net sales and operating
revenue, compared with 70.2% in the preceding period.
Contributing factors included net realized investment gains(including a gain on other-than-temporary impairment ofinvestment securities) in the insurance services segment,
as well as an increase in net sales and operating revenue
and a decrease in the cost of sales ratio—attributable tothe presence of profitable projects—in the BPO and ICT
services segment.
Selling, general and administrative (SG&A) expenses, at¥201.7 billion, were down 0.7%, or ¥1.5 billion, and equivalent
to 17.8% of net sales and operating revenue, slightly better thanthe previous fiscal year’s 17.9%, reflecting cost-cutting efforts
and the voluntary suspension of business travel as a measure
to prevent the spread of COVID-19, among others. The Company
also reported an impairment loss on goodwill (in the security

services business) of ¥5.7 billion, up ¥4.9 billion. In contrast,
impairment loss on long-lived assets fell ¥857 million, to ¥95
million, and loss on sales and disposal of fixed assets, net,slipped ¥990 million, to ¥1.8 billion.
Operating Income
Operating income rose 4.8%, or ¥6.2 billion, to ¥135.8 billion,
as favorable results in the insurance services, BPO and ICT
services, and geospatial information services segments
outweighed declines in the security services, fire protection
services and medical services segments, while corporate
expenses and eliminations decreased. The operating margin
improved to 12.0%, from 11.4%. (For further information, pleasesee Segment Information below.)
Other Income and Expenses
Other income increased ¥2.3 billion, to ¥12.1 billion, while otherexpenses fell ¥3.6 billion, to ¥2.8 billion. Net other income thus
amounted to ¥9.3 billion, up ¥5.9 billion. This was primarily
attributable to a more encouraging investment environment,
as a consequence of which the Company reported a gain onother-than-temporary impairment of investment securities of¥4.6 billion, compared with a loss on other-than-temporary
impairment of investment securities of ¥3.7 billion in thepreceding period. The Company had also reported a ¥2.3 billion
gain on sales of securities, net, in the previous fiscal year, as
the result of the sale of a U.S. subsidiary in the geospatial
information services business.
Income Taxes
Income taxes amounted to ¥47.6 billion, up ¥6.8 billion, owing tohigher income from continuing operations before income taxes
and equity in net income of affiliated companies, as well as to anincrease in the income tax expense rate, reflecting the increasein impairment loss on goodwill. This was equivalent to 32.8% ofincome from continuing operations before income taxes andequity in net income of affiliated companies, compared with30.7% in the preceding period.
Equity in Net Income of Affiliated Companies
Equity in net income of affiliated companies edged down ¥76
million, to ¥6.6 billion.
Loss from Discontinued Operations, Net of Tax
In December 2020, all issued shares in consolidated subsidiary
Secom Home Life Co., Ltd., were transferred to a third party. As
a consequence, Secom Home Life and its subsidiary, previously
included in the real estate and other, and security services
segments, were excluded from the scope of consolidation andtheir operations classified as discontinued. Accordingly, theoperating results of these companies are reported in income(loss) from discontinued operations. Figures for prior periods
have been restated. As a consequence of this and otherfactors, loss from discontinued operations, net of tax, in the
period under review was ¥2.6 billion, compared with income
from discontinued operations, net of tax, of ¥975 million in thepreceding period.

SECOM REPORT 2021

57

Financial Information and References/Financial Review

Net Income Attributable to Noncontrolling Interests
Net income attributable to noncontrolling interests declined¥1.0 billion, to ¥11.6 billion. The principal factor behind thisresult was a decrease in operating income in the fire protection
services segment.
Net Income Attributable to SECOM CO., LTD.
Net income attributable to SECOM CO., LTD., advanced 3.2%,
or ¥2.8 billion, to ¥89.9 billion, equivalent to 7.9% of net
sales, rising from 7.7% in the preceding period. Net income
attributable to SECOM CO., LTD., per share was ¥411.95, up from¥399.23. The figure of ¥170.00 for cash dividends per share thatappears in the consolidated financial statements represents
cash dividends approved and paid to shareholders during theperiod under review, namely, an ¥85.00 per share year-end
dividend for the fiscal year ended March 31, 2020, approved at
the Ordinary General Meeting of Shareholders held on June 25,
2020, and an ¥85.00 per share interim dividend determined by
the Board of Directors and paid to shareholders of record as of
September 30, 2020. Cash dividends for the fiscal year ended
March 31, 2021, approved at the Ordinary General Meetingof Shareholders held on June 25, 2021, were also ¥85.00
per share.

Segment Information
Security Services
Security services include electronic security services, whichcenter on on-line security systems; other security services;and merchandise and other. In the fiscal year ended March 31,
2021, net sales and operating income in this segment declined
1.2%, or ¥7.0 billion, to ¥566.4 billion. Excluding intersegment
transactions, segment net sales and operating income were¥563.3 billion, representing 49.6% of overall net sales andoperating revenue, down from 50.3% in the previous fiscal year.
In addition to on-line commercial and home security
systems, electronic security services include large-scale
proprietary security systems, which focus on surveillance at
subscribers’ premises. On-line commercial and home security
systems use sensors, controllers and other equipment installedat subscribers’ premises to detect events, including intrusions,fires and equipment malfunctions. Equipment is linked toa SECOM control center via telecommunications circuits tofacilitate around-the-clock monitoring. Should an irregularity be
detected, relevant information is relayed to the control center,
where staff dispatch emergency response personnel to takeappropriate measures. If necessary, control center staff also
notify the police, fire department or other emergency services.
The Company employs a rental format, whereby it maintains
ownership of security equipment and provides it to subscribers
on a rental basis. This minimizes initial costs for subscribers
and guarantees the quality and stability of its services. The
initial contract period for security services is five years, with
contracts renewed automatically each subsequent year.
Depreciation for security equipment is computed using thedeclining balance method principally over five years.
The Company takes full responsibility for all aspects of
its on-line commercial and home security systems, from
R&D through to equipment manufacturing, security planning,
installation, around-the-clock monitoring, emergency response
services and equipment maintenance. This integrated approachleverages the Company’s half-century-plus of experience andknowhow in providing electronic security services, together with
its R&D team’s ability to recognize and address false alarms, toensure highly efficient operations.

58

SECOM REPORT 2021

Net sales and operating income from electronic security
services edged up 0.1%, or ¥198 million, to ¥347.4 billion.
In overseas markets, net sales and operating income in thiscategory fell, hindered by the spread of COVID-19 and a weakyen. In contrast, net sales and operating income in this category
in Japan rose, underpinned by increased sales of high-valueadded on-line security systems such as System Security
AZ, which boasts superb expandability, as well as peripheralservices, and of SECOM Home Security NEO and other home
security services that address growing needs for help in caring
for vulnerable members of society.
Other security services include static guard and armoredcar services. Net sales and operating revenue generated bystatic guard services, which are provided by highly trained
professional security guards for systems requiring humanjudgment and flexible responsiveness, decreased 1.0%, or ¥684
million, to ¥69.4 billion. Armored car services, which involve thetransport of cash, securities and other valuables using speciallyfitted armored cars and security professionals, generated net
sales and operating revenue of ¥62.8 billion, down 1.2%, or ¥761
million, mainly due to changes in the operations of financial
institutions.
The merchandise and other category encompasses a wide
range of security products, including security camera systems,
access control systems, automated fire extinguishing systems
and external monitoring systems, which can be freestandingor linked to on-line security systems. Net sales and operating
revenue in this category declined 6.1%, or ¥5.4 billion, to ¥83.7
billion, largely owing to the negative impact of the pandemic onmerchandise turnover.
Operating income in the security services segment
decreased 5.6%, or ¥6.1 billion, to ¥102.6 billion. The operating
margin was 18.1%, slipping from 18.9% in the preceding
period. These results mainly reflected an impairment loss on
goodwill of ¥5.7 billion, up ¥4.9 billion, and lower sales in themerchandise and other category.

Fire Protection Services
The fire protection services segment focuses on high-grade,tailored, automatic fire alarm systems, fire extinguishingsystems and other fire protection systems for a wide range ofapplications, including office buildings, plants, tunnels, culturalproperties, ships and residences. In the period under review,
Nohmi Bosai and Nittan, two of Japan’s leading domestic
fire protection services providers, sought to leverage theirrespective business foundations and product development
capabilities to secure orders.
Net sales and operating revenue in this segment declined
7.7%, or ¥12.0 billion, to ¥143.9 billion. Principal factors behind
this result included the impact of COVID-19 and the fact thatmajor projects had pushed up results in the previous fiscal year.
Operating income fell 26.5%, or ¥4.7 billion, to ¥13.1 billion,
reflecting the absence of the concentrated number of profitableprojects that had buoyed results in the preceding period. The
operating margin was 9.1%, down from 11.4%.
Medical Services
Medical services include the provision of home nursing services,
pharmaceutical dispensing services, support for affiliatedmedical institutions in Japan, sales of medical equipment,
the operation of a general hospital in India, the operation ofresidences for seniors and other personal care services, healthand preventative care services, and ICT-based services, which
include electronic medical report systems. Additionally, thissegment includes the operations of variable interest entities(VIEs) of which the Company is the primary beneficiary, which
manage hospitals and health care–related institutions.
Segment net sales and operating revenue, at ¥182.8
billion, was down 2.4%, or ¥4.5 billion. This was primarily due
to a decline in the number of patients at affiliated medical
institutions, a consequence of the pandemic, which hindered
net sales and operating revenue of VIEs, as well as a reduction
in revenue reported by a hospital operated by the Company inIndia. Operating income fell 36.8%, or ¥2.3 billion, to ¥3.9 billion,
while the operating margin decreased to 2.2%, from 3.3% in theprevious fiscal year.
Insurance Services
The insurance services segment continued to expand sales ofan extensive lineup of distinctive non-life insurance policies,
including the Security Discount Fire Policy, a commercial fire
insurance policy, and SECOM Anshin My Home, a comprehensive
fire insurance policy for homes—both of which extend discounts
on premiums to customers who have installed on-line security
systems, recognizing this as a risk-mitigating factor—and
SECOM Anshin My Car, a comprehensive automobile insurance
policy that offers onsite support services provided by SECOM
emergency response personnel should the policyholders
be involved in an accident, and MEDCOM, an unrestricted
cancer treatment policy that covers the entire cost of medical
treatment for cancer.
Net sales and operating revenue in this segment climbed
30.8%, or ¥14.4 billion, to ¥61.4 billion, bolstered by brisk
sales of MEDCOM and automobile insurance policies, aswell as by net realized investment gains (including gains onother-than-temporary impairments of investment securities)of ¥7.7 billion, compared with net realized investment lossesof ¥4.1 billion in the preceding period. Thanks to net realized
investment gains, the segment reported operating income of¥9.3 billion, compared with an operating loss of ¥4.3 billion.
Geospatial Information Services
The geospatial information services segment centers on thecollection of geographic data using commercial satellites,
aircraft and surveying using proprietary vehicles, among
others, which is integrated, processed and analyzed to provide
geospatial information services to public-sector entities—
including national and local governments—and customers in
the private sector in Japan. These services are also offered
to government agencies overseas. Segment net sales andoperating revenue edged up 0.7%, or ¥376 million, to ¥54.1
billion, bolstered by an increase in revenue from domestic
public-sector customers, to which the provision of surveying
services employing aerial lasers expanded. Operating income
climbed 46.6%, or ¥1.4 billion, to ¥4.4 billion, while theoperating margin rose to 8.2%, from 5.6%, owing mainly to an
improvement in the cost of sales ratio in the area of services fordomestic public-sector customers, a result of higher revenue
and enhanced production efficiency, as well as to declines in
SG&A expenses attributable to the optimization of services foroverseas customers and efforts to adapt sales processes to aremote environment.
BPO and ICT Services
BPO and ICT services, which focus on the provision of data
center services, also encompass distinctively SECOM BCP
support, telework support, information security and cloudbased services, and BPO services, which include the operationof contact centers. Net sales and operating revenue in thissegment advanced 7.6%, or ¥8.4 billion, to ¥119.3 billion, thanksprincipally to special demand associated with COVID-19 andexpanded revenue in the area of BPO services, underpinned byefforts to cultivate customers, and in the data center services
business. Operating income, at ¥13.6 billion, increased 28.4%,
or ¥3.0 billion, while the operating margin rose to 11.4%, from
9.6%, reflecting an improvement in the cost of sales ratio, with
contributing factors including higher net sales and operating
revenue in the data center business, and a number of profitable
BPO services projects.
Real Estate and Other Services
The real estate and other services segment comprises realestate leasing, construction, installation and other services.
Segment net sales and operating revenue was down 7.1%,
or ¥2.1 billion, to ¥28.1 billion, owing to a decrease in major
construction projects and the absence of real estate sales
that boosted results in the preceding period, among others.
Operating income was up 1.6%, or ¥86 million, to ¥5.4 billion,
reflecting an improvement in the cost of sales ratio in the areaof maintenance services. The operating margin improved to19.3%, from 17.6%.

SECOM REPORT 2021

59

Financial Information and References/Financial Review

Financial Position
Total assets as of March 31, 2021, amounted to ¥2,137.8 billion,
an increase of ¥56.7 billion from the end of the previous fiscal
year. Total current assets climbed ¥35.0 billion, to ¥979.4 billion,
and accounted for 45.8% of total assets. The current ratio was
2.3 times, compared with 2.2 times a year earlier. Current
assets included cash and cash equivalents of ¥502.2 billion, up¥87.5 billion. (For further information, please see Cash Flows,which follows this section.) Notes and accounts receivable,
trade, at ¥153.4 billion, were down ¥13.2 billion, owing to suchfactors as a decline in net sales and operating revenue in thefire protection services segment. Notes and accounts receivable,
trade, are affected by the fact that income in the fire protection
services and geospatial information services businesses tends
to be concentrated toward the end of the fiscal year. Cashdeposits for armored car services decreased ¥2.0 billion, to¥138.9 billion. These cash deposits are funded primarily throughbank overdrafts and deposits and their use by the Company
is restricted. Inventories fell ¥24.5 billion, to ¥31.8 billion,
a consequence of the exclusion of consolidated real estatedevelopment and sales subsidiary Secom Home Life, all issued
shares in which were transferred to a third party.
Investments and long-term receivables, at ¥347.7 billion,rose ¥22.4 billion, and represented 16.3% of total assets.
Investment securities advanced ¥19.3 billion, to ¥214.1 billion.
The key factor behind this was the purchase of new corporate
bonds and other debt securities following the redemption andsales of the corporate bonds and other debt securities due
within one year.
Property, plant and equipment, less accumulated
depreciation, amounted to ¥429.1 billion, an increase of ¥3.6
billion. This accounted for 20.1% of total assets.
Other assets decreased ¥4.2 billion, to ¥381.6 billion,
and were equivalent to 17.8% of total assets. Owing to an
improvement in the investment environment, prepaid pension

and severance costs rose ¥7.7 billion, to ¥39.5 billion. In
contrast, deferred income taxes fell ¥6.4 billion, to ¥19.3
billion, and long-term deferred charges declined ¥3.1 billion, to¥13.9 billion.
Until the fiscal year ended March 31, 2020, all costs related
to installation services for security equipment used in theprovision of on-line security systems were included in deferredcharges in other assets. Effective from the fiscal year ended
March 31, 2021, the portion of these costs to be amortizedwithin one year was shifted to short-term deferred charges incurrent assets. (For further information, please see note 2 (13)of Notes to Consolidated Financial Statements.)
Total liabilities as of March 31, 2021, were ¥846.7 billion, adecrease of ¥7.1 billion from a year earlier, and represented
39.6% of total liabilities and equity. Total current liabilities, at¥420.0 billion, were down ¥11.2 billion and accounted for 19.6%
of total liabilities and equity. This primarily reflected a ¥5.2
billion decline in bank loans, to ¥33.9 billion, due mainly to a
reduction in bank loans related to armored car services, and a¥4.2 billion decrease in notes and accounts payable, trade, to¥44.3 billion.
Total long-term liabilities rose ¥4.1 billion, to ¥426.7 billion,
equivalent to 20.0% of total liabilities and equity. This was due
to a ¥9.2 billion increase in long-term debt, to ¥53.5 billion,
largely the result of an increase in long-term debt held by VIEs
managing hospitals and other healthcare-related institutions.
Until the fiscal year ended March 31, 2020, lump-sum
payments for residences for seniors were presented as
guarantee deposits in long-term liabilities. Effective from thefiscal year ended March 31, 2021, these payments are included
in long-term deferred revenue in long-term liabilities. (Forfurther information, please note 2 (26) of Notes to Consolidated
Financial Statements.)

Total SECOM CO., LTD. shareholders’ equity advanced ¥53.6
billion, to ¥1,142.3 billion. Retained earnings rose ¥52.8 billion,to ¥1,070.4 billion, owing primarily to net income attributable

to SECOM CO., LTD., and the payment of dividends. As aconsequence, the equity ratio was 53.4%, up from 52.3% at theprevious fiscal year-end.

Cash Flows
The Company is committed to maintaining sufficient liquidity
to allow flexibility in its operations and ensure a solid financial
foundation. To the best of its ability, the Company is also
firmly committed to financing strategic investments with cash
generated by its operating activities.
In the fiscal year ended March 31, 2021, net cash provided
by operating activities amounted to ¥188.7 billion. The principal
components of this were net income of ¥101.5 billion anddepreciation and amortization, including amortization ofdeferred charges—a non-cash item—of ¥78.7 billion. Net
cash provided by operating activities was ¥4.3 billion higher
than in the fiscal year ended March 31, 2020, as a decrease
in receivables and due from subscribers, net of allowances,of ¥14.3 billion, compared with an increase of ¥10.6 billion in
the preceding period, pushed up cash provided by operating
activities, while an increase in inventories of ¥787 million,
compared with a decrease of ¥9.3 billion, and decreases innotes and accounts payable and accrued income taxes of ¥4.1
billion and ¥935 million, respectively, compared with increasesof ¥2.4 billion and ¥5.1 billion in the previous fiscal year boosted
cash used in operating activities.
Net cash used in investing activities was ¥52.9 billion.
The main applications of cash were payments for purchasesof property, plant and equipment of ¥50.1 billion, applied topurchases of equipment necessitated by rising security services
subscriptions; payments for purchases of intangible assets of¥10.7 billion; and acquisitions, net of cash acquired, of ¥7.1
billion. In contrast, cash proceeds from sale of subsidiaries, netof cash and cash equivalents disposed of, provided ¥14.6 billion.
Net cash used in investing activities was down ¥13.7 billion fromthe previous fiscal year, with contributing factors including a¥13.0 billion decline in payments for purchases of property,
plant and equipment, and a ¥12.0 billion increase in proceedsfrom sale of subsidiaries, net of cash and cash equivalents
disposed of. In contrast, cash used for acquisitions, net of cash
acquired, was up ¥6.4 billion. Investments in the insurance
services segment and private equity investments in the
United States yielded an increase in net proceeds from sales
and redemptions of investment securities of ¥1.1 billion, downfrom ¥3.6 billion.
Net cash used in financing activities amounted to ¥47.7
billion, mainly reflecting dividends paid to SECOM CO., LTD.
shareholders of ¥37.1 billion. Net cash used in financing
activities was ¥5.2 billion less than in the preceding period, due
principally to higher net proceeds from long-term debt in the
medical services segment.
Owing to the Company’s operating, investing and financing
activities in the period under review, cash and cash equivalents
at end of year amounted to ¥502.2 billion, up ¥87.5 billion fromcash equivalents at beginning of year, which were ¥414.7 billion.

Percentage of Consolidated
Net Sales and Operating Revenue*

SECOM CO., LTD.
Shareholders’ Equity per ShareTotal Assets

Depreciation and Amortization

Purchases of Property, Plant andEquipment and Intangible Assets

Cash Flows(Year ended March 31, 2021)(In yen)(In billions of yen)

(In billions of yen)

(In billions of yen)

(In billions of yen)

9.7%

2.4%

4.7%
5.1%

Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities

6,000

2,500

5,000

100

80

75

60

200
150

2,000

49.6%
16.1%

100

4,000
1,500

12.4%
3,000
Security Services
Medical Services
Geospatial Information
Services
Real Estate and Other
Services

Fire Protection Services
Insurance Services
BPO and ICT Services*Pie chart shows percentage of consolidated net
sales and operating revenue (excludingintersegment transactions)

60

SECOM REPORT 2021

50

40

25

20

50

1,000
0

2,000
500

1,000

-50

0

0
2017 2018 2019 2020 2021

02017 2018 2019 2020 2021

-100

02017 2018 2019 2020 2021

2017 2018 2019 2020 2021

2019

2020

2021

SECOM REPORT 2021

61

Financial Information and References

Consolidated Financial Statements
Consolidated Balance Sheets
SECOM CO., LTD. and Subsidiaries
March 31, 2021 and 2020

ASSETS
Current assets:
Cash and cash equivalents .........................................................................................................
Time deposits ..................................................................................................................................
Cash deposits for armored car services.................................................................................
Short-term investments ..............................................................................................................
Notes and accounts receivable, trade .....................................................................................
Due from subscribers ...................................................................................................................
Inventories .......................................................................................................................................
Short-term deferred charges ....................................................................................................
Short-term receivables ................................................................................................................
Allowance for doubtful accounts ..............................................................................................
Deferred insurance acquisition costs ......................................................................................
Other current assets .....................................................................................................................
Total current assets .............................................................................................................

Investments and long-term receivables:
Investment securities ...................................................................................................................
Investments in affiliated companies ........................................................................................
Long-term receivables .................................................................................................................
Lease deposits ................................................................................................................................
Other investments .........................................................................................................................
Allowance for doubtful accounts ..............................................................................................

In millions of yen

Translation into
thousands of
U.S. dollars

March 31

March 31

2021

2020

2021

¥ 502,201
9,587
138,890
21,220
153,41061,47931,784
7,887
27,666(1,708)2,640
24,375
979,431¥ 414,668
9,097
140,906
31,084
166,612
63,11256,297
8,612
25,679(1,641)
4,301
25,749944,476$ 4,524,333
86,3691,251,261
191,171
1,382,072
553,865
286,342
71,054249,243(15,387)
23,784
219,595
8,823,702

214,107
67,13039,602
19,731
11,105(4,002)
347,673

194,82264,49941,566
17,725
10,947(4,237)
325,322

1,928,892
604,775
356,775
177,757
100,045(36,054)
3,132,190

LIABILITIES AND EQUITYCurrent liabilities:
Bank loans .......................................................................................................................................
Current portion of long-term debt ............................................................................................
Notes and accounts payable, trade ..........................................................................................
Other payables ................................................................................................................................
Deposits received...........................................................................................................................
Deferred revenue ...........................................................................................................................
Accrued income taxes ..................................................................................................................
Accrued payroll ..............................................................................................................................
Current operating lease liabilities.............................................................................................
Other current liabilities ................................................................................................................
Total current liabilities ........................................................................................................
Long-term liabilities:
Long-term debt...............................................................................................................................
Guarantee deposits received ......................................................................................................
Accured pension and severance costs ....................................................................................
Long-term deferred revenue......................................................................................................
Unearned premiums and other insurance liabilities ..........................................................
Investment deposits by policyholders .....................................................................................
Deferred income taxes .................................................................................................................
Noncurrent operating lease liabilities .....................................................................................
Other long-term liabilities ...........................................................................................................
Total long-term liabilities ...................................................................................................
Total liabilities ......................................................................................................................

In millions of yen

Translation into
thousands of
U.S. dollars

March 31

March 31

2020

2021

2021

¥

33,852
15,45744,26543,679123,808
37,93823,56041,11920,44835,876420,002¥

39,002
17,98348,46644,331
122,796
39,331
24,811
39,65019,171
35,623431,164$

304,973
139,252
398,784
393,505
1,115,387
341,784
212,252
370,441
184,216
323,2073,783,801

53,492
23,34629,868
17,944133,118
19,82913,470120,052
15,542426,661
846,663

44,25523,342
31,393
20,715
128,908
21,51613,132
124,297
14,991
422,549
853,713

481,910210,324
269,081
161,658
1,199,261
178,640
121,351
1,081,550
140,021
3,843,796
7,627,597

66,41074,607
10,884
1,070,419

66,401
74,68010,833
1,017,661

598,288672,135
98,054
9,643,414

2,566
(658)
(8,120)(6,212)

2,046(4,601)(4,506)(7,061)

23,117(5,928)(73,152)(55,963)(73,785)
1,142,323
148,820
1,291,143¥2,137,806(73,776)
1,088,738
138,669
1,227,407¥2,081,120(664,730)
10,291,198
1,340,721
11,631,919$19,259,516

Commitments and contingent liabilities
Property, plant and equipment:
Land ...................................................................................................................................................
Buildings and improvements .....................................................................................................
Security equipment and control stations ...............................................................................
Machinery, equipment and automobiles.................................................................................
Construction in progress .............................................................................................................
Accumulated depreciation ..........................................................................................................

Other assets:
Operating lease right-of-use assets ........................................................................................
Long-term deferred charges......................................................................................................
Goodwill ............................................................................................................................................
Other intangible assets ................................................................................................................
Prepaid pension and severance costs.....................................................................................
Deferred income taxes .................................................................................................................
Total assets............................................................................................................................

62

SECOM REPORT 2021

120,613377,361355,945
160,139
10,166
1,024,224(595,115)
429,109140,500
13,905
109,946
58,37639,532
19,334
381,593¥2,137,806

117,457
365,362
346,168
156,830
7,026
992,843(567,339)
425,504

143,468
17,052
108,925
58,814
31,79025,769385,818¥2,081,120

1,086,604
3,399,649
3,206,712
1,442,694
91,586
9,227,245(5,361,396)
3,865,849

1,265,766
125,270
990,505
525,910356,144
174,180
3,437,775$19,259,516

Equity:SECOM CO., LTD. shareholders' equity:
Common stock
Authorized—900,000,000 shares, issued 233,295,926 shares in 2021
Authorized—900,000,000 shares, issued 233,293,998 shares in 2020....................
Additional paid-in capital .............................................................................................................
Legal reserve ..................................................................................................................................
Retained earnings..........................................................................................................................
Accumulated other comprehensive income (loss):
Unrealized gains on securities ..............................................................................................
Pension liability adjustments.................................................................................................
Foreign currency translation adjustments........................................................................
Common stock in treasury, at cost:
15,034,565 shares in 2021 and 15,033,588 shares in 2020 ........................................
Total SECOM CO., LTD. shareholders' equity.....................................................................
Noncontrolling interests...................................................................................................................
Total equity ............................................................................................................................
Total liabilities and equity.................................................................................................

SECOM REPORT 2021

63

Financial Information and References/Consolidated Financial Statements

Consolidated Statements of Income

Consolidated Statements of Changes in Equity

SECOM CO., LTD. and Subsidiaries
Three years ended March 31, 2021

SECOM CO., LTD. and Subsidiaries
Three years ended March 31, 2021

Net sales and operating revenue ......................................................................................................
Costs and expenses:
Cost of sales .........................................................................................................................................
Selling, general and administrative expenses...........................................................................
Impairment loss on long-lived assets..........................................................................................
Impairment loss on goodwill ..........................................................................................................
Gain and loss on sales and disposal of fixed assets, net .......................................................
Operating income ...............................................................................................................
Other income:Interest and dividends ......................................................................................................................
Gain and loss on sales of securities, net .....................................................................................
Gain on other-than-temporary impairment of investment securities ...............................
Gain on private equity investments ..............................................................................................
Other.......................................................................................................................................................
Other expenses:
Interest ..................................................................................................................................................
Gain and loss on sales of securities, net .....................................................................................
Loss on other-than-temporary impairment of investment securities ...............................
Loss on private equity investments ..............................................................................................
Other.......................................................................................................................................................
Income from continuing operations before income taxes and equity
in net income of affiliated companies.......................................................................
Income taxes:
Current...................................................................................................................................................
Deferred ................................................................................................................................................
Income from continuing operations before equity in net income ofaffiliated companies .......................................................................................................
Equity in net income of affiliated companies ................................................................................
Income from continuing operations ............................................................................
Income (loss) from discontinued operations, net of tax ............................................................
Net income ...........................................................................................................................
Less: Net income attributable to noncontrolling interests ......................................................
Net income attributable to SECOM CO., LTD. ...........................................................

Per share data:
Income from continuing operations attributable to SECOM CO., LTD. ...............................
Income (loss) from discontinued operations attributable to SECOM CO., LTD. ...............
Net income attributable to SECOM CO., LTD. .............................................................................
Cash dividends per share ....................................................................................................................

In millions of yen

Translation into
thousands of
U.S. dollars

Years ended
March 31

Year ended
March 31

2021

2020

2019

2021

¥1,135,339¥1,132,632¥1,087,355$10,228,279

790,288
201,723
95
5,660
1,764
999,530
135,809795,318
203,223
952
758
2,754
1,003,005
129,627

763,459
198,551595—
1,443
964,048
123,307

7,119,711
1,817,324
856
50,991
15,892
9,004,774
1,223,505

1,880
—
4,594
—
5,647
12,121

1,961
2,297
—
—
5,545
9,803

1,639
—
—
4,673
4,747
11,05916,937—41,387—50,874
109,198

1,168
121
—
302
1,254
2,845

1,120
—
3,738
139
1,477
6,474

1,111
115
3,959
—
1,123
6,308

10,523
1,090
—
2,721
11,29725,631145,085

132,956

128,058

1,307,072

43,743
3,855
47,59845,546(4,711)
40,83547,088(12,076)
35,012

394,081
34,730428,811

97,487
6,578
104,065(2,570)101,495(11,582)¥ 89,913

92,121
6,654
98,775975
99,750(12,614)
87,136

93,046
7,002
100,048393
100,441(10,755)¥ 89,686

878,261
59,261
937,522(23,153)914,369(104,342)
810,027¥

In yenTranslation into
U.S. dollars

Years ended
March 31

Year ended
March 31

2021

2020

2019

2021

¥423.73(11.78)411.95¥170.00¥394.76
4.47
399.23¥170.00¥409.111.80
410.91¥160.00$3.82(0.11)
3.71$1.53

In millions of yen

Translation into
thousands of
U.S. dollars

Years ended
March 31

Year ended
March 31

Consolidated Statements of Comprehensive Income
SECOM CO., LTD. and Subsidiaries
Three years ended March 31, 2021

Comprehensive income:Net income ...........................................................................................................................................
Other comprehensive income (loss), net of tax:
Unrealized gains on securities ..................................................................................................
Pension liability adjustments ....................................................................................................
Foreign currency translation adjustments ............................................................................
Total comprehensive income ........................................................................................................
Less: Comprehensive income attributable to noncontrolling interests ..............................
Comprehensive income attributable to SECOM CO., LTD. .............................................

64

SECOM REPORT 2021

$

2021

2020

2019

2021

¥101,495¥99,750¥100,441$914,369

519
4,462(3,975)102,501(11,739)¥ 90,762(263)(4,037)(2,934)92,516(12,364)¥80,152274(2,566)(4,908)93,241(10,060)¥ 83,181

4,676
40,200(35,810)923,435(105,758)$817,677

In millions of yen
Number ofsharesissuedBalance, March 31, 2018 ......................................................... 233,290,441
Cumulative effect adjustments resulting fromadoption of new accounting standards, net of tax .........
—
Comprehensive income:—Net income .............................................................................
Other comprehensive income (loss), net of tax:
Unrealized gains on securities .................................
—
Pension liability adjustments ....................................
—
Foreign currency translation adjustments............
—
Total comprehensive income ...........................................
Issuance of new stocks.............................................................
1,778
Cash dividends paid to SECOM CO., LTD. shareholders...
—
Cash dividends paid to noncontrolling interests ...............
—
Transfer to legal reserve ..........................................................
—
Equity transactions with noncontrolling interestsand other ....................................................................................
—
Changes in the scope of application of
the equity method ....................................................................
—
Gains on disposal of treasury stock......................................
—Net changes in treasury stock ................................................
—
Balance, March 31, 2019 ......................................................... 233,292,219
Comprehensive income:—Net income .............................................................................
Other comprehensive income (loss), net of tax:—
Unrealized gains on securities .................................
Pension liability adjustments ....................................
—
Foreign currency translation adjustments............
—
Total comprehensive income ...........................................
Issuance of new stocks.............................................................
1,779
Cash dividends paid to SECOM CO., LTD. shareholders...
—
Cash dividends paid to noncontrolling interests ...............
—
Transfer to legal reserve ..........................................................
—
Equity transactions with noncontrolling interestsand other.....................................................................................
—
Changes in the scope of application of
the equity method ....................................................................
—
Gains on disposal of treasury stock......................................
—Net changes in treasury stock ................................................
—
Balance, March 31, 2020 ......................................................... 233,293,998
Comprehensive income:—Net income .............................................................................
Other comprehensive income (loss), net of tax:—
Unrealized gains on securities .................................
Pension liability adjustments ....................................
—
Foreign currency translation adjustments............
—
Total comprehensive income ...........................................
Issuance of new stocks.............................................................
1,928
Cash dividends paid to SECOM CO., LTD. shareholders...
—
Cash dividends paid to noncontrolling interests ...............
—
Transfer to legal reserve ..........................................................
—
Equity transactions with noncontrolling interestsand other.....................................................................................
—
Changes in the scope of application of
the equity method ....................................................................
—
Gains on disposal of treasury stock......................................
—Net changes in treasury stock ................................................
—
Balance, March 31, 2021 ......................................................... 233,295,926

Commonstock

Additional
paid-in
capitalLegalreserve

Retainedearnings

Accumulated
other comprehensive
income (loss)

Commonstock intreasury,
at costTotal
SECOM CO., LTD.
shareholders’ Noncontrolling
equityinterests¥66,385¥73,133¥10,733¥ 896,586¥27,189(¥73,749)¥1,000,277¥131,028¥1,131,305

—

—

—

16,379(20,762)—(4,383)(421)(4,804)———

89,686——

89,686

10,755

100,441

—
—
—

—
—
—

—
—
—

—
—
—

274
(2,320)(4,459)

—
—
—

8
—
—
—

7
—
—
—

—
—
—
50

—
(34,922)
—
(50)

—
—
—
—

—
—
—
—

274
(2,320)(4,459)83,181
15(34,922)
—
—

—
(246)
(449)
10,060——(6,252)—274(2,566)(4,908)93,241
15(34,922)(6,252)
—

Total

—

26

—

—

—

—

26

(2,697)(2,671)———
66,393———73,166———
10,783———
967,679

—
—
—
(78)

—
—
(10)
(73,759)——(10)
1,044,184———
131,718——(10)
1,175,902———

87,136——

87,136

12,61499,750

—
—
—

—
—
—

—
—
—

—
—
—

(263)
(3,858)(2,862)

—
—
—

8
—
—
—

8
—
—
—

—
—
—
50

—
(37,104)
—
(50)

—
—
—
—

—
—
—
—

(263)
(3,858)(2,862)80,153
16(37,104)
—
—

—
(178)
(72)
12,364——(3,438)—(263)(4,036)(2,934)92,517
16(37,104)(3,438)
—

—

1,506

—

—

—

—

1,506

(1,975)

(469)

—
—
—
66,401—0—74,680———10,833———
1,017,661———(7,061)—0(17)(73,776)—0(17)
1,088,738———
138,669—0(17)
1,227,407———

89,913——89,913

11,582

101,495

—
—
—

—
—
—

—
—
—

—
—
—

519
3,942
(3,612)

—
—
—

9
—
—
—

9
—
—
—

—
—
—
51

—
(37,104)
—
(51)

—
—
—
—

—
—
—
—

519
3,942
(3,612)
90,762
18(37,104)
—
—

—
520
(363)
11,739——(2,523)
—

519
4,462
(3,975)102,501
18(37,104)(2,523)
—

—

(82)

—

—

—

—

(82)

935

853

—
—
—
¥66,410———¥74,607———¥10,884———¥1,070,419———(¥6,212)——(9)(¥73,785)——(9)¥1,142,323———¥148,820——(9)¥1,291,143

Commonstock

Additional
paid-in
capitalLegalreserve

Retainedearnings

Accumulated
other comprehensive
income (loss)

Commonstock intreasury,
at cost$672,793$97,595$9,168,117($63,613)($664,649)$9,808,450——

810,027——810,027

104,342914,369

—
—
—

—
—
—

—
—
—

4,676
35,515(32,541)

—
—
—

81
—
—
—

—
—
—
459

—
(334,271)
—
(459)

—
—
—
—

—
—
—
—

4,676
35,515(32,541)
817,677
162(334,271)
—
—

—
4,685
(3,269)105,758——(22,730)—

4,676
40,200(35,810)923,435
162(334,271)(22,730)
—

(739)

—

—

—

—

(739)

8,423

7,684

—
—
—
$672,135———$98,054———$9,643,414

—
—
—
—
—
(81)
($55,963) ($664,730)

—
—
(81)
$10,291,198

Translation into thousands of U.S. dollars

Balance, March 31, 2020 ...................................................................................... $598,207
Comprehensive income:—Net income ..........................................................................................................
Other comprehensive income (loss), net of tax:—
Unrealized gains on securities ..............................................................
Pension liability adjustments .................................................................
—
Foreign currency translation adjustments.........................................
—
Total comprehensive income ........................................................................
Issuance of new stocks..........................................................................................
81
Cash dividends paid to SECOM CO., LTD. shareholders................................
—Cash dividends paid to noncontrolling interests ............................................
—
Transfer to legal reserve .......................................................................................
—
Equity transactions with noncontrolling interestsand other..................................................................................................................
—
Changes in the scope of application of—
the equity method .................................................................................................
Gains on disposal of treasury stock...................................................................
—Net changes in treasury stock .............................................................................
—
Balance, March 31, 2021 ...................................................................................... $598,288

Total
SECOM CO., LTD.
shareholders’ Noncontrolling
equityinterests

Total$1,249,270 $11,057,720

—
—
—
—
—
(81)
$1,340,721 $11,631,919

SECOM REPORT 2021

65

Financial Information and References/Consolidated Financial Statements

Consolidated Statements of Cash Flows

Segment Information

SECOM CO., LTD. and Subsidiaries
Three years ended March 31, 2021

Cash flows from operating activities:
Net income ...........................................................................................................................................
Adjustments to reconcile net income to net cash provided by operating activities—
Depreciation and amortization, including amortization of deferred charges .............
Accrual for pension and severance costs, less payments ...............................................
Deferred income taxes, including discontinued operations .............................................
Gain and loss on sales and disposal of fixed assets, net ..................................................
Impairment loss on long-lived assets ....................................................................................
Write-down on real estate inventories ...................................................................................
Gain and loss on private equity investments ........................................................................
Impairment loss on goodwill .....................................................................................................
Gain on sales of securities, net .................................................................................................
Loss on other-than-temporary impairment of investment securities ..........................
Equity in net income of affiliated companies........................................................................
Changes in assets and liabilities, net of effects from acquisitions and disposals:(Increase) decrease in cash deposits for armored car services ...............................
(Increase) decrease in receivables and due from subscribers,
net of allowances ...................................................................................................................
(Increase) decrease in inventories ......................................................................................
Increase in deferred charges ...............................................................................................
Increase (decrease) in notes and accounts payable .....................................................
Increase (decrease) in deposits received .........................................................................
Increase (decrease) in deferred revenue ..........................................................................
Increase (decrease) in accrued income taxes .................................................................
Increase (decrease) in guarantee deposits received.....................................................
Increase in unearned premiums and other insurance liabilities ..............................
Increase (decrease) in accrued consumption tax ..........................................................
Other, net ....................................................................................................................................
Net cash provided by operating activities ...................................................................
Cash flows from investing activities:(Increase) decrease in time deposits ...........................................................................................
Proceeds from sales of property, plant and equipment .........................................................
Payments for purchases of property, plant and equipment ..................................................
Payments for purchases of intangible assets ...........................................................................
Proceeds from sales and redemptions of investment securities ........................................
Payments for purchases of investment securities ..................................................................
(Increase) decrease in short-term investments .......................................................................
Proceeds from sale of subsidiaries, net of cash and cash equivalents disposed of......
Acquisitions, net of cash acquired.................................................................................................
(Increase) decrease in short-term receivables, net .................................................................
Payments for long-term receivables............................................................................................
Proceeds from long-term receivables .........................................................................................
Other, net ...............................................................................................................................................
Net cash used in investing activities .............................................................................
Cash flows from financing activities:
Proceeds from long-term debt.......................................................................................................
Repayments of long-term debt ......................................................................................................
Increase (decrease) in bank loans, net ........................................................................................
Increase (decrease) in investment deposits by policyholders ..............................................
Dividends paid to SECOM CO., LTD. shareholders .....................................................................
Dividends paid to noncontrolling interests .................................................................................
Payments for acquisition of shares of consolidated subsidiaries fromnoncontrolling interest holders ...................................................................................................
Proceeds from sales of shares of consolidated subsidiaries tononcontrolling interest holders ...................................................................................................
Increase in treasury stock, net .......................................................................................................
Other, net ...............................................................................................................................................
Net cash used in financing activities ............................................................................
Effect of exchange rate changes on cash and cash equivalents ............................................
Net increase in cash and cash equivalents ...................................................................................
Cash and cash equivalents at beginning of year .........................................................................
Cash and cash equivalents at end of year......................................................................................

66

SECOM REPORT 2021

In millions of yen

Translation into
thousands of
U.S. dollars

Years ended
March 31

Year ended
March 31

2021

2020

2019

2021

¥101,495¥ 99,750¥100,441$ 914,369

78,716(2,110)
3,859
1,788
95
20
302
5,660
2,476
(11,441)(6,578)77,574
1,193(4,715)
2,770
952
66
139
758
(2,962)
8,540(6,654)75,300614(12,086)
1,444
595
580
(4,673)
—
(901)
8,991
(7,002)

709,153(19,009)34,766
16,108
856
180
2,721
50,991
22,306(103,072)(59,261)

2,016

1,430

(6,527)

18,162

14,319(787)(8,985)(4,077)1,061(1,807)(935)(1,197)
4,209
1,295
9,329
188,723(10,576)
9,256(11,754)
2,361(4,822)
1,874
5,146
(352)
4,600
4,529
5,295
184,398(17,404)
4,285(10,716)
3,388
8,690
938
(4,914)
(164)
9,495
(831)
8,784
158,327

129,000(7,090)(80,946)(36,730)
9,559(16,279)(8,423)(10,784)
37,91911,66784,0441,700,207

(593)
766
(50,122)(10,738)
47,859(55,991)
9,269
14,633(7,098)310(1,472)
1,947(1,719)(52,949)

1,564
1,178
(63,126)(11,722)
50,259(45,325)(1,357)
2,670
(725)
(147)
(1,416)
1,578(42)(66,611)(1,251)
3,379(56,401)(11,454)
43,597(36,686)(4,256)(0)(3,133)62(1,024)
1,685
1,052(64,430)(5,342)
6,901(451,550)(96,739)
431,162(504,423)
83,505
131,829(63,946)
2,793(13,261)
17,541(15,488)(477,018)

16,699(18,752)(4,500)(1,687)(37,104)(2,600)8,802(18,793)162(2,099)(37,104)(3,425)

7,161(20,184)(1,789)(1,592)(34,922)(6,263)

150,441(168,937)(40,541)(15,198)(334,271)(23,423)

(241)

(659)

(3,033)(2,171)—(9)
478(47,716)(525)
87,533414,668¥502,201

—
(16)
190
(52,942)93
64,938349,730¥414,668

—
(10)
331
(60,301)(595)
33,001
316,729¥349,730

—
(81)
4,307
(429,874)(4,730)788,585
3,735,748$4,524,333

Information by business and geographic segments for the years ended and as of March 31, 2021, 2020 and 2019 is as follows:(1) Business Segment Information

Net sales and operating revenue:
Security services—

Customers .......................................................................
Intersegment ..................................................................

Fire protection services—

Customers .......................................................................
Intersegment ..................................................................

Medical services—

Customers .......................................................................
Intersegment ..................................................................

Insurance services—

Customers .......................................................................
Intersegment ..................................................................

Geospatial information services— Customers .......................................................................
Intersegment ..................................................................
BPO and ICT services—

Customers .......................................................................
Intersegment ..................................................................

Real estate and other services—

Customers .......................................................................
Intersegment ..................................................................

Total ........................................................................................................................................................
Eliminations .........................................................................................................................................
Total net sales and operating revenue ...................................................................................

Operating income (loss):
Security services ................................................................................................................................
Fire protection services ....................................................................................................................
Medical services .................................................................................................................................
Insurance services .............................................................................................................................
Geospatial information services ....................................................................................................
BPO and ICT services ........................................................................................................................
Real estate and other services.......................................................................................................
Total ........................................................................................................................................................
Corporate expenses and eliminations .........................................................................................
Operating income ...............................................................................................................................
Other income .......................................................................................................................................
Other expenses ...................................................................................................................................
Income from continuing operations before income taxes ................................................

In millions of yen

In thousands of
U.S. dollars

Years ended
March 31

Year ended
March 31

2021

2020

2019

2021

¥ 563,349
3,072
566,421140,599
3,275
143,874
182,573
206
182,779
58,291
3,084
61,37553,908204
54,112
109,619
9,709
119,328
27,0001,087
28,087
1,155,976(20,637)¥1,135,339¥ 570,041
3,370
573,411
151,861
4,050
155,911
187,101
220
187,32143,515
3,413
46,92853,535201
53,736
97,616
13,321
110,937
28,963
1,271
30,234
1,158,478(25,846)¥1,132,632¥ 557,123
3,039
560,162
140,139
3,942
144,081
181,705
168
181,873
41,6373,120
44,75751,510386
51,896
88,162
13,121
101,283
27,0791,786
28,865
1,112,917(25,562)¥1,087,355$ 5,075,216
27,676
5,102,892
1,266,658
29,505
1,296,163
1,644,802
1,856
1,646,658
525,144
27,784552,928
485,658
1,838
487,496
987,559
87,4681,075,027
243,242
9,793
253,035
10,414,199(185,920)$10,228,279

In millions of yen

In thousands of
U.S. dollars

Years ended
March 31

Year ended
March 31

2021

2020

2019

2021

¥102,579
13,091
3,938
9,309
4,443
13,636
5,422
152,418(16,609)¥135,809
12,121(2,845)¥145,085¥108,646
17,817
6,232(4,319)3,030
10,624
5,336
147,366(17,739)¥129,627
9,803(6,474)¥132,956¥109,879
14,188
5,782(4,856)
1,878
9,390
4,947
141,208(17,901)¥123,307
11,059(6,308)¥128,058$ 924,135
117,937
35,477
83,86540,027
122,847
48,847
1,373,135(149,630)$1,223,505
109,198(25,631)$1,307,072

In millions of yen

In thousands of
U.S. dollars

Assets:Security services ...............................................................................................................................................................
Fire protection services ...................................................................................................................................................
Medical services ................................................................................................................................................................
Insurance services ............................................................................................................................................................
Geospatial information services ...................................................................................................................................
BPO and ICT services .......................................................................................................................................................
Real estate and other services......................................................................................................................................
Total .......................................................................................................................................................................................
Corporate items .................................................................................................................................................................
Investments in affiliated companies ...........................................................................................................................
Total assets ....................................................................................................................................................................

March 31

March 31

2021

2020

2021

¥ 915,768
180,083
202,191
242,071
72,703245,129
109,670
1,967,615
103,059
67,132¥2,137,806¥ 853,101
175,854
201,449
231,650
68,516
243,152
137,425
1,911,147
105,473
64,500¥2,081,120$ 8,250,162
1,622,369
1,821,541
2,180,820
654,982
2,208,369
988,018
17,726,261
928,459
604,796$19,259,516

SECOM REPORT 2021

67

Financial Information and References

Financial Information and References/Consolidated Financial Statements

Other Financial Data

Segment Information

Summary of Selected Financial Data
SECOM CO., LTD. and Subsidiaries
Years ended/as of March 31
In millions of yen

In thousands of
U.S. dollars

Years ended
March 31

Year ended
March 31

2021

2020

2019

2021

Depreciation and amortization:
Security services ......................................................................................................................
Fire protection services ..........................................................................................................
Medical services........................................................................................................................
Insurance services ...................................................................................................................
Geospatial information services ..........................................................................................
BPO and ICT services ...............................................................................................................
Real estate and other services .............................................................................................
Total ..............................................................................................................................................
Corporate items.........................................................................................................................
Total depreciation and amortization ..............................................................................

¥41,360
2,662
8,496
2,556
1,665
9,647
909
67,295868¥68,163¥50,383
2,537
8,321
2,290
1,700
10,644842
76,717857¥77,574¥49,409
2,375
8,684
1,792
2,249
9,075
953
74,537763¥75,300$372,612
23,982
76,541
23,027
15,00086,9108,189
606,2617,820$614,081

Capital expenditure:
Security services ......................................................................................................................
Fire protection services ..........................................................................................................
Medical services........................................................................................................................
Insurance services ...................................................................................................................
Geospatial information services ..........................................................................................
BPO and ICT services ...............................................................................................................
Real estate and other services .............................................................................................
Total ..............................................................................................................................................
Corporate items.........................................................................................................................
Total capital expenditures .................................................................................................

¥44,525
5,249
4,057
1,936
2,052
6,824
3,532
68,175486¥68,661¥44,930
2,569
8,778
4,440
2,987
12,8942,121
78,7191,116¥79,835¥48,451
2,269
4,750
2,972
2,420
9,085
4,550
74,497
1,291¥75,788$401,126
47,28836,55017,441
18,486
61,477
31,820614,188
4,378$618,566

The capital expenditures in the above table represent the additions to property, plant and equipment and intangible assets of each segment.
The Company has no single customer that accounts for more than 10 percent of total revenues.
The following table is a breakdown of security services revenue to external customers by service category. The security services businessis managed as a single operating segment by the Company’s management.

Electronic security services .......................................................................................................
Other security services:
Static guard services ...............................................................................................................
Armored car services ..............................................................................................................
Merchandise and other ................................................................................................................
Total security services ............................................................................................................

In millions of yen

In thousands of
U.S. dollars

Years ended
March 31

Year ended
March 31

2021

2020

2019

2021

¥347,407¥347,209¥344,362$3,129,794

69,37062,841
83,731¥563,349

70,05463,602
89,176¥570,041

66,28962,41784,055¥557,123

624,954
566,132
754,336$5,075,216(2) Geographic Segment Information
Net sales and operating revenue attributed to countries based on the geographical location of customers for the years ended March 31,
2021, 2020 and 2019 and long-lived assets as of March 31, 2021 and 2020 were as follows:

Net sales and operating revenue:
Japan ........................................................................................................................
Other .........................................................................................................................
Total .....................................................................................................................

In millions of yen

In thousands of
U.S. dollars

Years ended
March 31

Year ended
March 31

2021

2020

2019

2021

¥1,091,216
44,123¥1,135,339¥1,083,446
49,186¥1,132,632¥1,038,978
48,377¥1,087,355$ 9,830,774
397,505$10,228,279

In millions of yen

In thousands of
U.S. dollars

Long-lived assets:
Japan .....................................................................................................................................................
Other ......................................................................................................................................................
Total ..................................................................................................................................................

March 31

March 31

2021

2020

2021

¥771,547
13,711¥785,258¥772,155
13,122¥785,277$6,950,874
123,523$7,074,397

In millions of yen
2021

2020

2019

2018

2017

2016

Composition of consolidated net sales andoperating revenue by segment
Net sales and operating revenue ....................................................... ¥1,135,339 ¥1,132,632 ¥1,087,355 ¥1,058,568 ¥1,004,094¥961,202
Security services: ..............................................................................
563,349
570,041
557,123
555,444536,897498,385
As a percentage of net sales and operating revenue ...
49.6%
50.3%
51.2%
52.4%
53.4%
51.9%
Electronic security services.......................................................
347,407347,209344,362341,207
338,797
330,894
As a percentage of net sales and operating revenue ...
30.6
30.7
31.7
32.2
33.7
34.4
Other security services—
Static guard services ..............................................................
69,37070,054
66,28959,05456,43855,925
As a percentage of net sales and operating revenue ...
6.1
6.2
6.1
5.6
5.6
5.8
Armored car services .............................................................
62,841
63,60262,41761,08957,87332,990As a percentage of net sales and operating revenue ...
5.5
5.6
5.7
5.8
5.8
3.4
132,211
133,656
128,706
120,143
114,311
88,915
Subtotal .............................................................................
Merchandise and other ...............................................................
83,731
89,176
84,05594,094
83,78978,576
As a percentage of net sales and operating revenue ...
7.4
7.9
7.7
8.9
8.3
8.2
140,599
151,861
140,139
136,559
126,232
131,743
Fire protection services ...................................................................
As a percentage of net sales and operating revenue ...
12.4
13.4
12.9
12.9
12.6
13.7
182,573
187,101
181,705
175,318
168,819
163,538
Medical services.................................................................................
16.1
16.5
16.7
16.6
16.8
17.0
As a percentage of net sales and operating revenue ...
Insurance services ............................................................................
58,291
43,515
41,63744,683
43,78040,654
5.1
3.8
3.8
4.2
4.4
4.2
As a percentage of net sales and operating revenue ...
Geospatial information services ...................................................
53,90853,53551,51050,906
51,60952,553
4.7
4.7
4.7
4.8
5.1
5.5
As a percentage of net sales and operating revenue ...
BPO and ICT services ........................................................................
109,619
97,616
88,162
69,71349,741
48,368
9.7
8.6
8.1
6.6
5.0
5.0
As a percentage of net sales and operating revenue ...
Real estate and other services ......................................................
27,00028,96327,07925,94527,01625,961
2.4
2.6
2.5
2.5
2.7
2.7
As a percentage of net sales and operating revenue ...
Net income attributable to SECOM CO., LTD.,
cash dividends and SECOM CO., LTD.
shareholders’ equity
Net income attributable to SECOM CO., LTD. ................................. ¥ 89,913
37,104
Cash dividends paid(2) ............................................................................
SECOM CO., LTD. shareholders’ equity ............................................. 1,142,323
Consolidated financial ratios
Percentage of working capital accounted for by:
Debt—
Bank loans ......................................................................................
Current portion of long-term debt ...........................................
Straight bonds ...............................................................................
Other long-term debt ...................................................................
Total debt ....................................................................................
SECOM CO., LTD. shareholders’ equity.........................................
Total capitalization ...................................................................
Return on total assets (percentage)(a)...............................................
Return on equity (percentage)(b) .........................................................
Percentage of net sales and operating revenue absorbed by(c):Depreciation and amortization ......................................................
Rental expense under operating leases .....................................
Ratio of accumulated depreciation to depreciable
assets (percentage) .............................................................................
Net property turnover (times)(c) ..........................................................
Before-tax interest coverage (times)(c) (d)..........................................

¥

87,136 ¥ 89,686 ¥ 96,623
37,10434,922
32,7381,088,738
1,044,184
1,000,277¥

91,38730,557929,242¥ 84,072
28,373865,278

2.7
1.2
0.3
4.0
8.3
91.7
100.0

3.3
1.5
0.3
3.4
8.5
91.5
100.0

3.4
1.6
0.4
3.6
8.9
91.1
100.0

3.5
1.7
0.5
4.1
9.8
90.2
100.0

4.0
1.9
0.7
4.5
11.1
88.9
100.0

5.6
1.8
0.8
5.3
13.5
86.5
100.0

4.2
7.9

4.2
8.0

4.8
8.6

5.3
9.7

5.2
9.8

5.0
9.7

6.9
2.6

5.7
2.4

6.8
2.5

7.3
2.3

7.6
2.5

7.4
2.5

66.6
2.65
125.2

65.3
2.73
117.5

65.4
2.67
109.6

64.6
2.63
123.0

63.2
2.49
107.1

62.8
2.38
89.2

Note: Installation revenue is included in the corresponding electronic security services.

There are no individually material countries other than Japan with respect to net sales and operating revenue and long-lived assets.

68

SECOM REPORT 2021

SECOM REPORT 2021

69

Financial Information and References/Other Financial Data

Summary of Selected Financial Data

Common Stock Data
SECOM CO., LTD.
As of March 31
2021

2020

2019

2018

2017

2016

Number of shares outstanding
Issued .............................................................................. 233,295,926
Owned by SECOM CO., LTD. ....................................... 15,034,565

233,293,998
15,033,588

233,292,219
15,031,867

233,290,441
15,030,573

233,288,717
15,028,470

233,288,717
15,026,824

Balance ........................................................................... 218,261,361

218,260,410

218,260,352

218,259,868

218,260,247

218,261,893¥ 411.95
170.00¥ 399.23
170.00¥ 410.91
160.00¥ 442.70
150.00¥ 418.71
140.00¥ 385.19
130.005,233.74
602.60
1.78
22.61
15.45
9,313

4,988.25
533.88
1.80
22.48
16.81
8,974

4,784.12
590.91
1.98
23.08
16.05
9,482

4,582.96
649.44
1.73
17.89
12.20
7,920

4,257.50
631.91
1.87
19.03
12.61
7,969

3,964.40
582.27
2.11
21.72
14.37
8,366

Per share information:
Net income attributable to SECOM CO., LTD.
per share (in yen) (1) ..................................................
Cash dividends paid per share (in yen) (2) .............
SECOM CO., LTD. shareholders’ equity
per share (in yen) (3) ..................................................
Cash flow per share (in yen) (1) (e) .............................
Price/Book value ratio................................................
Price/Earnings ratio ...................................................
Price/Cash flow ratio ..................................................
Stock price at year-end (in yen) ..............................

Notes: (a) Net income attributable to SECOM CO., LTD. / Total assets(b) Net income attributable to SECOM CO., LTD. / SECOM CO., LTD.
shareholders’ equity(c) Including discontinued operations(d) (Income before income taxes and equity in net income of affiliatedcompanies + Interest expense) / Interest expense(e) (Net income attributable to SECOM CO., LTD. + Depreciation andamortization – Dividends approved) / Average number of shares
outstanding during each period

70

SECOM REPORT 2021

(1) Per share amounts are based on the average number of shares
outstanding during each period.
(2) Subsequent to March 31, 2021, cash dividends of ¥18,552 million(¥85 per share) were approved at the general shareholders’meeting on June 25, 2021 (see Note 18 of the accompanying notes
to consolidated financial statements).
(3) Per share amounts are based on the number of shares
outstanding at the end of each period, less treasury stock.

SHAREHOLDER INFORMATION
Number of shareholders ........................................
Common shares held by:
Financial institutions...........................................
Securities firms ....................................................
Other domestic corporations............................
Foreign investors .................................................
Individuals and others ........................................
Treasury stock ......................................................
Total .....................................................................

2021

2020

2019

2018

2017

2016

21,73923,29724,02326,80925,20024,97539.44%
2.81
2.45
41.55
7.31
6.44
100.00%38.65%
1.95
2.50
42.76
7.70
6.44
100.00%37.14%
3.30
2.46
42.74
7.92
6.44
100.00%35.94%
1.63
2.53
44.85
8.61
6.44
100.00%35.05%
3.89
2.51
43.42
8.69
6.44
100.00%32.50%
3.52
2.92
44.46
10.16
6.44
100.00%

PRICE INFORMATION (TOKYO STOCK EXCHANGE)
2019
2020

2021

April–June ........................................................................................
July–September .............................................................................
October–December .......................................................................
January–March ..............................................................................
April–June ........................................................................................
July–September .............................................................................
October–December .......................................................................
January–March ..............................................................................

Price per share (in yen)
High
Low

¥ 9,670
10,005
10,0959,965
9,700
10,33010,625
10,265¥8,830
8,149
9,288
7,188
8,240
9,061
8,735
9,073

Nikkei Stock Average (in yen)
High
Low

¥22,307.58
22,098.84
24,066.12
24,083.51
23,178.10
23,559.30
27,568.15
30,467.75¥20,408.54
20,261.04
21,341.74
16,552.83
17,818.72
21,710.00
22,977.13
27,055.94

SECOM REPORT 2021

71

Financial Information and References

Financial Information and References/Other Financial Data

Corporate Information

Common Stock Data

(As of June 30, 2021)

COMMON STOCK ISSUES

Date

Additional
shares issued(In thousands)

Sharesoutstanding
after issue(In thousands)

June 15, 1974
Dec. 21, 1974
May 21, 1975
May 21, 1975
Dec. 1, 1975
May 31, 1976
June 1, 1976
Dec. 1, 1976
Nov. 30, 1977
Dec. 1, 1977
Dec. 1, 1978
June 1, 1981
Dec. 1, 1981
Jan. 20, 1983
Nov. 30, 1983
Nov. 30, 1984
Nov. 30, 1985
Jan. 20, 1986
Nov. 30, 1986
Nov. 30, 1987
Jan. 20, 1988
Nov. 30, 1988
Nov. 30, 1989
Jan. 19, 1990
Mar. 31, 1990
Mar. 31, 1991
Mar. 31, 1992
Mar. 31, 1993
Mar. 31, 1994
Mar. 31, 1995
Mar. 31, 1996
Mar. 31, 1997
Mar. 31, 1998
Mar. 31, 1999
Nov. 19, 1999
Mar. 31, 2000
Mar. 31, 2001
Mar. 31, 2002
Mar. 31, 2003
Mar. 31, 2005
July 27, 2017
July 26, 2018
July 26, 2019
July 22, 2020
July 21, 2021

1,968
2,760
1,196
1,244
4,320
1,880
2,060
6,798
2,042
6,300
7,560
3,000
4,836
5,320
194
1,418
186
6,031
2,878
1,609
3,541
439
1,808
22,986
1,446
2,949
2,035
267
6,986
477
613
1,825
29
159
116,410
273
25
175
6
8
1
2
2
2
2

9,200
11,96013,156
14,40018,72020,60022,66029,45831,50037,80045,36048,36053,19658,51658,71060,12860,314
66,34569,22370,832
74,37374,812
76,62099,606
101,052
104,001
106,036
106,303113,289
113,766
114,379
116,204
116,233
116,392
232,802
233,075
233,100
233,275
233,281
233,289
233,290
233,292
233,294
233,296
233,298

Share capital
after issue(In thousandsof yen)¥460,000
598,000
657,800
720,000
936,000
1,030,000
1,133,000
1,472,900
1,575,000
1,890,000
2,268,000
2,418,000
2,659,800
3,000,000
3,280,942
5,329,282
5,602,945
5,602,945
11,269,932
15,021,200
15,021,200
16,063,099
21,573,139
21,573,139
25,070,104
32,244,732
37,338,751
37,991,568
56,756,263
58,214,178
59,865,105
65,253,137
65,327,060
65,709,927
65,709,927
66,096,852
66,126,854
66,360,338
66,368,827
66,377,829
66,385,263
66,392,692
66,401,083
66,410,237
66,419,390

Allotment ratio
to shareholders—
3 for 10
1 for 10—
3 for 10—
1 for 10
3 for 10—
2 for 10
2 for 10—
1 for 10
1 for 10———
1 for 10——
0.5 for 10——
3 for 10
—
—
—
—
—
—
—
—
—
—
10 for 10*
—
—
—
—
—
—
—
—
—
—

Remarks

Issue at market price (¥900)
Stock split
Stock split
Issue at market price (¥1,134)
Stock split
Issue at market price (¥2,570)
Stock split
Stock split
Issue at market price (¥1,700)
Stock split
Stock split
Issue at market price (¥2,230)
Stock split
Stock split
Conversion of convertible bonds
Conversion of convertible bonds
Conversion of convertible bonds
Stock split
Conversion of convertible bonds
Conversion of convertible bonds
Stock split
Conversion of convertible bonds
Conversion of convertible bonds
Stock split
Conversion of convertible bonds
Conversion of convertible bonds
Conversion of convertible bonds
Conversion of convertible bonds
Conversion of convertible bonds
Conversion of convertible bonds
Conversion of convertible bonds
Conversion of convertible bonds
Conversion of convertible bonds
Conversion of convertible bonds
Stock split
Conversion of convertible bonds
Conversion of convertible bonds
Conversion of convertible bonds
Conversion of convertible bonds
Conversion of convertible bonds
Issue of new shares as restricted stock compensation
Issue of new shares as restricted stock compensation
Issue of new shares as restricted stock compensation
Issue of new shares as restricted stock compensation
Issue of new shares as restricted stock compensation

Note: The above is a record of SECOM’s common stock issues since the common stock was listed on the Tokyo Stock Exchange in June 1974.
*One share was split into two.

Headquarters:

5-1, Jingumae 1-chome, Shibuya-ku, Tokyo 150-0001, Japan

Independent auditors:

KPMG AZSA LLC

Administrator of the register of shareholders:

Mitsubishi UFJ Trust and Banking Corporation
4-5, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-8212, Japan

MAJOR CONSOLIDATED SUBSIDIARIES

Domestic
Security services
Secom Joshinetsu Co., Ltd.
Secom Hokuriku Co., Ltd.
Secom Yamanashi Co., Ltd.
Secom Mie Co., Ltd.
Secom Sanin Co., Ltd.
Secom Kochi Co., Ltd.
Secom Miyazaki Co., Ltd.
Secom Ryukyu Co., Ltd.
Secom Jastic Co., Ltd.
Secom Jastic Joshinetsu Co., Ltd.
Secom Jastic Hokuriku Co., Ltd.
Secom Jastic Yamanashi Co., Ltd.
Secom Jastic Sanin Co., Ltd.
Secom Jastic Kochi Co., Ltd.
Secom Jastic Miyazaki Co., Ltd.
Secom Static Hokkaido Co., Ltd.
Secom Static Tohoku Co., Ltd.
Secom Static Nishi-Nihon Co., Ltd.
Secom Static Kansai Co., Ltd.
Secom Static Ryukyu Co., Ltd.
Secom Sado Co., Ltd.
JK. Siress Co., Ltd.
Japan Safety Guard Co., Ltd.
Japan Nuclear Security System Co., Ltd.
Meian Co., Ltd.
Secom Tech Sanin Co., Ltd.
Secom Techno Joshinetsu Co., Ltd.
Secom Win Co., Ltd.
Secom Industries Co., Ltd.
Otec Electronics Co., Ltd.
Secom Alpha Co., Ltd.
Secom Mine Security Co., Ltd.
Social Rehabilitation Support Kitsuregawa Co., Ltd.
Secom Kitsuregawa Security Co., Ltd.
Asahi Security Co., Ltd.
Secom Tosec Co., Ltd.
Aroba Inc.

Issued capital(In millions of yen)

Percentageof equity/
voting rights¥3,530
201
15
50
290
50
30
76
100
40
10
10
10
10
10
50
50
50
50
10
24
10
100
200
60
23
30
15
499
200
271
30
10
50
100
30
255

(53.4)%
59.1
70.0
51.0
64.3
40.0
68.3
50.0
100.0
(100.0)(100.0)(100.0)(100.0)(100.0)(100.0)
100.0
100.0
100.0
100.0
(100.0)(100.0)(100.0)
60.0
50.0
51.0
(100.0)(100.0)
66.7
100.0
82.0
100.0
100.0
51.7
100.0
100.0
80.1
100.0

Lines of business(As of June 30, 2021)

Security services
Security services
Security services
Security services
Security services
Security services
Security services
Security services
Security services
Security services
Security services
Security services
Security services
Security services
Security services
Security services
Security services
Security services
Security services
Security services
Security services
Security services
Security services
Security services
Security services
Installation of security equipment
Installation of security equipment
Installation of security equipment and facilities
Manufacturing of security equipment
Manufacturing and sales of security systems
Sales of security and water-treatment equipment
Security services
Operation of PFI correctional facilities
Security services
Security services
Security services
Software development

Notes: 1. ( ) indicates the percentage of equity/voting rights held by both SECOM CO., LTD. and certain of its subsidiaries, or by certain subsidiaries independently.
2. Subsidiaries are categorized into segments above according to their major lines of business.

72

SECOM REPORT 2021

(Continued)

SECOM REPORT 2021

73

Financial Information and References/Corporate Information

MAJOR CONSOLIDATED SUBSIDIARIESMAJOR CONSOLIDATED SUBSIDIARIES
Issued capital(In millions of yen)Fire protection services
Nohmi Bosai Ltd.
Ichibou Co., Ltd.
Kyushu Nohmi Co., Ltd.
Chiyoda Service Co., Ltd.
Nohmi Engineering Corp.
Nohmi System Co., Ltd.
Iwate Nohmi Co., Ltd.
Tohoku Nohmi Co., Ltd.
Aomori Nohmi Co., Ltd.
Nissin Bohsai Co., Ltd.
Chiba Nohmi Co., Ltd.
Shikoku Nohmi Co., Ltd.
Nohmi Techno Engineering Co., Ltd.
Akita Nohmi Co., Ltd.
Fukushima Nohmi Co., Ltd.
Niigata Nohmi Co., Ltd.
Hokkaido Nohmi Co., Ltd.
Yashima Bosai Setsubi Co., Ltd.
System Service Co., Ltd.
Nittan Co., Ltd.

Percentageof equity/
voting rights¥13,302(50.4)%

28
30
20
80
20
30
32
20
50
10
20
40
20
20
20
20
20
80
2,303

(73.2)(100.0)(70.0)(100.0)(100.0)(100.0)(100.0)(100.0)(100.0)(100.0)(100.0)(100.0)(100.0)(100.0)(100.0)(100.0)(85.0)(100.0)100.0

Nittan Denko Co., Ltd.
Nittan Hokkaido Service Center Co., Ltd.
Shell Beach Co., Ltd.
Consilium Nittan Marine Ltd.

10
10
10
42

(100.0)(100.0)(100.0)(50.0)

Medical services
Secom Medical System Co., Ltd.

100

100.0

Mac Corp.
Yoshikikaku Co., Ltd.
Kensei Co., Ltd.
Secomfort Tama Co., Ltd.
Alive Medicare Co., Ltd.
Secomfort Co., Ltd.
Secomfort West Co., Ltd.
US Chemical Co., Ltd.
Secom Medipharma Co., Ltd.

95
20
100
100
50
100
100
3
10

(100.0)(100.0)(100.0)(100.0)(100.0)(100.0)(100.0)(100.0)(100.0)Lines of business

74

SECOM REPORT 2021

Percentageof equity/
voting rights

Insurance services
Secom Insurance Service Co., Ltd.
Secom General Insurance Co., Ltd.

¥ 100
16,809(100.0)%97.1

Non-life insurance agency
Non-life insurance

Geospatial information services
Pasco Corp.
GIS Hokkaido Co., Ltd.
GIS Kanto Co., Ltd.
Mid Map Tokyo Corp.
RIIC Corp.
Higashi-Nihon Sogo Keikaku Co., Ltd.
Satellite Image Marketing Corp.

8,758
50
40
15
20
200
60

71.6
(100.0)(52.6)(60.0)(100.0)(100.0)(100.0)

Geospatial information services
Geospatial information services
Geospatial information services
Geospatial information services
Geospatial information services
Geospatial information services
Geospatial information services

BPO and ICT services
Secom Trust Systems Co., Ltd.

1,469

100.0

At Tokyo Corp.
TMJ, Inc.
BiOS, Inc.
Mobile Select, Inc.

13,379
100
39
10

50.9
100.0
(90.0)(100.0)Information, communication, information security
services and software development
Data center business
BPO services
Bilingual IT services
Contact center support services

Other services
Arai & Co., Ltd.
Arai Corporation, Inc.
Secom Credit Co., Ltd.
Secom Corp.
Secom Auto Service Co., Ltd.
Wonder Dream Co., Ltd.
Secom Business Plus Co., Ltd.
Secom Home Service Co., Ltd.
Secom Engineering Co., Ltd.
Toko Create Co., Ltd.
Kumalift Co., Ltd.

3,000
10
400
100
45
100
20
32
100
50
100

86.7
(100.0)
100.0
100.0
100.0
100.0
100.0
100.0
100.0
96.6
100.0

Real estate leasing
Management of real estate
Credit services
Clerical services
Car maintenance
Employee welfare for SECOM Group
General office services
Lifestyle support services
Design, construction and maintenance of facilities
Electrical engineering
Manufacture, sales and maintenance of freight elevators(As of June 30, 2021)

Manufacturing and sales of fire protection equipment
and facilities
Installation of fire protection equipment
Installation and maintenance of fire protection equipment
Building management
Installation of fire protection equipment
Maintenance of fire protection equipment
Installation of fire protection equipment
Installation of fire protection equipment
Installation of fire protection equipment
Installation of fire protection equipment
Installation of fire protection equipment
Installation of fire protection equipment
Installation of environmental monitoring systems
Installation of fire protection equipment
Installation of fire protection equipment
Installation of fire protection equipment
Installation of fire protection equipment
Installation of fire protection equipment
Installation and maintenance of fire protection equipment
Installation, sales and maintenance of fire protection
equipment
Installation and maintenance of fire protection equipment
Installation and maintenance of fire protection equipment
Installation and maintenance of fire protection equipment
Sales of fire protection equipment

Home health/nursing care and other medical-related
services
Sales of medical equipment
Operation of restaurants and shops at medical facilities
Management of pharmacies
Management of nursing homes
Management of nursing homes
Management of nursing homes
Management of nursing homes
Management of pharmacies
Wholesaling of pharmaceuticals

Notes: 1. ( ) indicates the percentage of equity/voting rights held by both SECOM CO., LTD. and certain of its subsidiaries, or by certain subsidiaries independently.
2. Subsidiaries are categorized into segments above according to their major lines of business.

Issued capital(In millions of yen)Lines of business(As of June 30, 2021)

Notes: 1. ( ) indicates the percentage of equity/voting rights held by both SECOM CO., LTD. and certain of its subsidiaries, or by certain subsidiaries independently.
2. Subsidiaries are categorized into segments above according to their major lines of business.

(Continued)(Continued)

SECOM REPORT 2021

75

Financial Information and References/Corporate Information

Regarding Publication of SECOM Report 2021

MAJOR CONSOLIDATED SUBSIDIARIES

Disclosure Configuration
Issued capital

The IR and Sustainability sections of the SECOM corporate website provide additional detailed information on our operatingLines of business100.0%(100.0)(100.0)100.0(95.0)(85.0)(80.0)(80.0)(100.0)(95.0)(100.0)(100.0)(97.0)(60.0)(100.0)(100.0)100.0
49.0(40.0)(99.9)
49.0
100.0(100.0)(100.0)100.0(80.0)
46.6(100.0)
100.0
100.0
50.0
(100.0)

Security services
Holding company
Security services
Holding company
Security services
Security services
Security services
Security services
Security services
Security services
Security services
Security services
Security services
Security services
Security services
Security services
Security services
Security services
Security services
Real estate leasing
Security services
Security services
Security services
Security services
Sales of security equipment
Security services
Security services
Security services
Security services
Security services
Security services
Security services

Other services
Shanghai Nohmi Secom Fire Protection Equipment Co., Ltd. US$14,300 thousand(100.0)Nohmi Taiwan Ltd.

(100.0)

Manufacturing and sales of fire protection
equipment and facilities
Manufacturing and sales of fire protection
equipment and facilities
Sales of fire protection equipment
Manufacturing of fire protection equipment
Installation and maintenance of fire
protection equipment
Sales of fire protection equipment
Holding company
Hospital management
Management of hospital real estate
Geospatial information services
Geospatial information services
Geospatial information services andsoftware development
Geospatial information services
BPO services
BPO services
BPO services
Holding company
Investment
Investment
Investment

NT$15,000 thousand£1,194 thousand
US$3,236 thousand
US$344 thousand(100.0)(100.0)(75.0)

Viet Bao Firefighting and Preventing Equipment JSC
Secom Medical System (Singapore) Pte. Ltd.
Takshasila Hospitals Operating Pvt. Ltd.
Takshasila Healthcare and Research Service Pvt. Ltd.
Pasco Philippines Corp.
Pasco (Thailand) Co., Ltd.
PT. Nusantara Secom InfoTech

US$86 thousand
S$66,587 thousand
INR3,926 million
INR15 million
PHP50,400 thousand
THB129,000 thousand
US$3,304 thousand(75.0)(100.0)(60.0)(100.0)(100.0)(100.0)(100.0)

Pasco North America Inc.
Value Communication Services (Shanghai), Inc.
Jie Sheng Communication Services (Shanghai), Inc.
TMJP BPO Services, Inc.
The Westec Security Group, Inc.
ClearLight Partners, LLC
ClearLight Partners II, LLC
ClearLight Partners III, LLC

US$5,621 thousand
Rmb35,749 thousand
Rmb5,000 thousand
PHP35,900 thousand
US$0.3 thousand———(100.0)(100.0)(100.0)(99.9)
100.0(99.7)(99.0)(98.0)

Notes: 1. ( ) indicates the percentage of equity/voting rights held by both SECOM CO., LTD. and certain of its subsidiaries, or by certain subsidiaries independently.
2. Subsidiaries are categorized into segments above according to their major lines of business.

SECOM REPORT 2021

performance, including financial statements prepared in accordance with U.S. GAAP, and initiatives aimed at helping realize asustainable society.

£44,126 thousand£20 thousand£50 thousand¥5,550 million
US$2,000 thousand
Rmb80,000 thousand
US$2,500 thousand
US$1,000 thousand
US$4,500 thousand
Rmb15,000 thousand
Rmb10,000 thousand
Rmb10,000 thousand
Rmb15,000 thousand
Rmb10,000 thousand
Rmb5,000 thousand
Rmb15,000 thousand
HK$105,510 thousand
US$4,111 thousand
I.RPA3,200 million
I.RPA97,972 million
THB378,934 thousand
AUD18,126 thousand
AUD7,373 thousand
NZD1,604 thousand¥120 million
VND95,177 million
S$5,000 thousand
S$100 thousand
S$26,476 thousand
MYR850 thousand
TRY80.579 thousand
TRY80,661 thousand

Nittan Europe Ltd.
Nittan Asean Co., Ltd. – Vietnam Headquarters
Anbao Corp.

76(As of June 30, 2021)

Scope of reporting
High
Importance to stakeholders

Overseas
Security services
Secom plc
Scan Alarms Ltd.
Scan Alarms & Security Systems (UK) Ltd.
Secom (China) Co., Ltd.
Dalian Secom Security Co., Ltd.
Shanghai Secom Security Co., Ltd.
Beijing Jingdun Secom Electronic Security Co., Ltd.
Qingdao Secom Security Co., Ltd.
Guangdong Secom Security Co., Ltd.
Fujian Secom Security Co., Ltd.
Sichuan Secom Security Co., Ltd.
Shaanxi Secom Security Co., Ltd.
Zhejiang Secom Security Co., Ltd.
Liaoning Secom Security Co., Ltd.
Tianjin Secom Security Co., Ltd.
Jiangsu Secom Security Co., Ltd.
ADT Alarm Monitoring Hong Kong Ltd.
PT. Secom Indonesia
PT. Secom Bhayangkara
PT. Secom Realty Indonesia
Thai Secom Security Co., Ltd.
Secom Australia Pty. Ltd.
Secom Technical Services Unit Trust
Secom Guardall NZ Ltd.
Secom Trading Co., Ltd.
Secom Vietnam Security Service JSC
Secom (Singapore) Pte. Ltd.
D’Garde Security Pte. Ltd.
ADT Integrated Security Solutions Pte. Ltd.
ADT Services (M) Sdn. Bhd.
Secom Aktif Guvenlik Yatirim A.S.
Secom Aktif Elektronik Güvenlik Cözümleri A.S.

Percentageof equity/
voting rights

SECOM Report

SECOM Reporthttps://www.secom.co.jp/english/ir/lib05.html

Financial data (U.S. GAAP)
https://www.secom.co.jp/english/ir/lib05.html
SECOM SASB Report

Corporate website

https://www.secom.co.jp/english/ir/lib05.html
Sustainability Reporthttps://www.secom.co.jp/english/csr
High

Importance to management

ESG Data
https://www.secom.co.jp/english/csr/download

Editorial Policy

Scope of Reporting

References used in the production of SECOM Report 2021 include theIn principle, this report provides information on SECOM CO., LTD., and its

disclosure framework for integrated reports issued by the International

consolidated subsidiaries, equity-method companies and variable interest

Integrated Reporting Council (IIRC) and Guidance for Collaborative Value

entities. (In instances where the scope differs, an explanation is provided.)

Creation, put out by Japan’s Ministry of Economy, Trade and Industry(METI). We have positioned this report as a core tool that systematically

Reporting Period

and concisely communicates with shareholders and investors by

This report is for the fiscal year ended March 31, 2021. (Some data

combining information on the various strategies that are essential to thesubsequent to that period is included.)creation of corporate value with financial and nonfinancial information.

Accounting Principles
Unless otherwise indicated, all financial data has been prepared inaccordance with U.S. GAAP.

Forward-Looking Statements
This report contains forward-looking statements about future plans andstrategies, as well as forecasts and expectations regarding SECOM’s
performance. Actual results may differ materially from these statements.

SECOM REPORT 2021

77

SECOM CO., LTD.
5-1, Jingumae 1-chome, Shibuya-ku,Tokyo 150-0001, Japanwww.secom.co.jp

Printed in Japan