REVIEW OF OPERATIONSCONTENTSSECURITY SERVICES ......................................................15MEDICAL SERVICES .......................................................16
INSURANCE SERVICES ...................................................16
INFORMATION AND COMMUNICATION RELATEDAND OTHER SERVICES..................................................17OVERSEAS OPERATIONS ...............................................18

Percentage
Percentage ofof Revenue
Revenue andand Other
Other Income*
Income*Security Services

Medical Services

Insurance Services

69.3%

2.7%

5.8%

*Excluding intersegment transactions.

14SECOM CO., LTD. Annual Report 2002

Information and Communication
Related and Other Services

20.9%

Commercial and Home Security Service Subscribers by Category
At March 31, 2002

HomeCommercial

Service industries
Retailing/wholesaling
Manufacturing
Financial services
Government agencies
OthersHouseholds

Security Services
Electronic Security Services
In the period ended March 31, 2002,
revenue and other income from theelectronic security services category,comprising the commercial security
and home security and large-scale
proprietary systems businesses,
increased 5.8%, to ¥247.9 billion,
accounting for 50.2% of consolidated
revenue and other income, comparedwith 50.1% in the previous period.
On-line centralized security systems, the core business in this category, are set up so that emergency
alarms from sensors placed in thesubscribers’ premises are transmitted
to an appropriate control center,
where the control staff promptly

13.4%
10.6%
9.3%
9.0%
7.4%
19.6%
30.7%

assess the situation. They dispatch
emergency response personnel andmay also call the police, ambulanceservice, fire department or gas company as required. These centralized
systems thus function as integrated
computer, telephone and human
response systems.
In the commercial security business, we continued to rigorously
market on-line security systems
incorporating our leading-edge
image sensing technologies, suchas the SECOM AX system, and imagetransmission technologies, such as
the SECOM IX system.
Our home security businessfocuses on on-line home security
systems that connect subscribers’

households to our control centers
to monitor for intrusion, fires, gas
leaks and emergency calls, thereby
ensuring peace of mind. During
the period, we continued to expand
our subscriber base, helped by agrowing market. We also concluded
an agreement with a housing construction firm whereby the firm has
incorporated SECOM Home Security
into its housing series as a standard
feature, thereby tapping the market
for home buyers who place a highvalue on a secure living environment.
In the large-scale proprietary systems business, we launched TOTAXZETA, a system that is compatible
with standard networks.
Other Security Services
Static guard and armored car services are included in this category,
which generated revenues of ¥51.1
billion, 8.0% higher than a year
earlier. This represented 10.4% ofconsolidated revenue and otherincome, compared with 10.1% in
the prior period.
Merchandise and OtherSECOM markets numerous securityrelated products, such as CCTV
monitoring systems, access-controlsystems, automatic fire detectionand extinguishing systems andexternal and internal monitoring
systems; and services, such as
COCO-SECOM. Revenue from thiscategory increased 25.3%, to ¥43.1billion, and accounted for 8.7% ofconsolidated revenue and other

SECOM CO., LTD. Annual Report 2002

15

REVIEW OF OPERATIONS

income, compared with 7.3% in theprevious period.
The COCO-SECOM series
employs GPS satellites and cellular
telephone base stations to relay
information about the location ofcompact mobile terminals, enabling
the dispatch of emergency response
personnel when requested. These
remarkable services can be used tolocate people, foil automobile theft
and keep tabs on precious items.
COCO-SECOM’s wide applicability
is allowing us to satisfy a whole newrange of security needs, and we areworking on adding new functions
and further capitalizing on its almost
limitless market potential.
We are committed to continually
upgrading our proprietary safety andsecurity equipment to meet thediverse needs of consumers. As aresult, we have developed several
top-selling products, such as SUPERCCTV, a monitoring system for convenience stores and other retail outlets. This system is equipped with anantitampering function that detects
attempts to interfere with the cameras, thereby enhancing the monitoring capabilities of store premises.
The SESAMO NT III access-control
system has garnered market attention because of its convenient wireless IC pass cards, which can beused to operate electronic locks.
Other merchandise includes theTOMAHAWK MACH II residentialuse fire extinguisher, which canbe easily operated with one hand,
the TOMAHAWK III high-speed

16SECOM CO., LTD. Annual Report 2002

automated fire extinguishing system,and the TOMAHAWK PS automatedextinguishing system for mechanicallyoperated parking buildings.

Medical Services
Revenue and other income fromthe medical services segment rose
2.1 times, to ¥13.5 billion, representing 2.7% of consolidated revenue
and other income, compared with
1.4% a year earlier.
During the period, we merged
our medical services department
with three subsidiaries responsible
for medical services to form a single
company, Secom Medical System,to enhance our ability to provide
seamless, high-quality medical care.
We also expanded our network ofvisiting nurse stations. These services are approved under Japan’s
health insurance scheme and now
also its long-term care insurance
scheme. The stations comprisenurses who visit patients to assist
with providing intravenous injections or operating breathing equipment, and who also provide longterm care. Other medical services
include Hospinet, a remote image
diagnosis support service for
medical institutions, and SECOM
Ubiquitous EMR, an electronic
medical report system.

Insurance Services
This segment earned revenue andother income of ¥28.8 billion
in the period under review, a 23.4%
increase over the previous period,and contributed 5.8% to consolidated revenue and other income,compared with 5.0% a year earlier.
Secom General Insurance
launched sales of MEDCOM, a medical care policy that covers expenses
related to new cancer treatments notcovered by the public health insurance scheme. Other popular policies
include Secom Anshin My Car automotive insurance, Security DiscountFire Policy for commercial subscribers
to centralized security systems andSecom Anshin My Home, a comprehensive fire insurance policy forresidential subscribers. Each of theseproducts draws on synergies with oursecurity systems to offer attractive
benefits at reasonable prices.

Information andCommunication
Related and OtherServices
Revenue and other income from thissegment amounted to ¥103.3 billion,
an increase of 11.6%, and accounted
for 20.9% of consolidated revenue
and other income, compared with
19.8% in the previous period.
Information Services
Secom Information System Co.,
Ltd., offers a range of services toexternal customers, including theplanning, development, operationand maintenance of corporate
networks, as well as plans, builds
and operates the SECOM Group’s
information networks and intranet.
Secom Trust.net provides cybersecurity services, including digitalauthentication, network security
monitoring and consulting services.
Its digital authentication services,such as SECOM Passport for Web
and SECOM Passport for Members,
provide PKI identities that enhanceInternet security. Corporate networks receive 24-hour continuous
monitoring and reporting to raise
their security and stability withsuch services as SECOM Virus
Monitoring Service and SECOM
Intrusion Detection Service. In oursecurity consulting services, we
focus on providing network risk
assessment and proposing appropriate solutions. In addition to cybersecurity, Secom Trust.net also offers
network services and operates a web

application service to help customers maximize the advantages
provided by the Internet. During
the period under review, it launchedElectronic Document Management
Solution, which digitizes and provides long-term storage for important data at a lower cost than clientcompanies can manage on theirown. The data can be retrieved viathe Internet at any time.

Real Estate Development
Secom Home Life embodies a wealthof experience and know-how in thefield of condominium developments.
This expertise helps it to developand market outstanding properties
that incorporate other SECOM
Group services—such as security
services, home medical care, information services and insurance
coverage—to provide purchasers
with security and peace of mind.

GIS Services
Pasco Corporation, a leader in its
field, specializes in providing services based on aerial mapping and
GIS technologies. Its Management
Navigation Service provides privatesector companies with digital mapssuperimposed with their own data
and figures, creating a valuable support tool for everyone from top management to field staff. Pasco offers
this service under long-term user
contracts, which allow for low-cost
regular updates to the base maps
and proprietary data.
PasCAL is a comprehensive GIS
service integrating various types ofdata with digital maps and is offered
to local governments to assist withsocial services.
Education Services
Secom Lines, a pioneer in Japan’s
computer-aided learning field,
continued to focus on promoting
educational software and its local
area network (LAN) systems forclassrooms.

SECOM CO., LTD. Annual Report 200217

REVIEW OF OPERATIONS

Overseas Operations
In the belief that the desire for security is universal, SECOM launched
its first overseas security operationin Taiwan in 1978, which was followed in succession by operationsin the Republic of Korea and theUnited States in 1981. Since then,we have expanded in Asia toThailand, Malaysia, Singapore,Indonesia and the PRC. In Europe,
we operate in the United Kingdom,
and in Oceania, in Australia.
One of the distinguishing characteristics of operations in these 10countries and territories is that wetake know-how and security systems
developed in our home market and18SECOM CO., LTD. Annual Report 2002

blend them with local customs andconditions to create customizedsolutions. This has helped theSECOM Group achieve local market
acceptance readily and create asecurity service network that transcends differences in languages
and cultures.
The IT market in the PRC ispoised for rapid growth, particularlyin the field of cyber security. In
anticipation, we established Beijing
Secom Information Technology Co.,
Ltd., to market cyber security
products and customized services.