HIGHLIGHTS

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

In thousandsof U.S. dollars

Years ended March 31

Year ended
March 31

U.S. GAAPSECOM CO., LTD. and Subsidiaries
Three years ended March 31, 2006

Net sales and operating revenue.......
Operating income..............................
Net income........................................
Total assets .......................................
Total shareholders’ equity .................

Per share of common stock:
Net income (basic) .......................
Cash dividends paid .....................
Shareholders’ equity ....................

2006

2005

2004

2006

¥0,580,526
81,89350,331
1,225,228
508,696¥0,552,354
75,55852,133
1,164,204
457,837¥0,517,435
54,06523,4791,165,105
415,852$04,961,761
699,940
430,179
10,472,034
4,347,829

In yenIn U.S. dollars¥ 223.69
50.00
2,261.00¥0,231.66
45.00
2,034.63¥0,104.32
40.00
1,847.80$ 1.91
0.43
19.32

Notes: 1. Yen amounts have been translated into U.S. dollars, solely for the convenience of the reader, at the rate of ¥117=US$1,
the rate prevailing on the Tokyo Foreign Exchange Market on March 31, 2006.
2. Net income per share of common stock is based on the average number of shares outstanding during each period.
3. Shareholders’ equity per share of common stock is based on the number of shares outstanding at the end of eachperiod, minus treasury stock.
4. Subsequent to March 31, 2006, cash dividends of ¥60.00 per share were approved at the general shareholders’ meeting
held on June 27, 2006 (see Note 17 of the accompanying Notes to Consolidated Financial Statements).

In thousandsof U.S. dollars

Years ended March 31

Year ended
March 31

Japanese GAAPSECOM CO., LTD. and Subsidiaries
Three years ended March 31, 2006

Revenue ............................................
Operating profit .................................
Ordinary profit ...................................
Net income........................................
Total assets .......................................
Total shareholders’ equity .................

Per share of common stock:
Net income (basic) .......................
Cash dividends paid .....................
Shareholders’ equity ....................

2006

2005

2004

2006

¥ 567,315
94,10996,66952,994
1,149,377
496,164¥ 547,230
83,04383,47848,517
1,097,548
441,927¥ 527,409
81,28676,243
41,111
1,092,067
403,257$ 4,848,846
804,350
826,231452,940
9,823,735
4,240,718

In yenIn U.S. dollars¥ 181.40
40.00
1,790.58$ 2.000.43
18.84¥ 234.28
50.00
2,204.06¥ 214.41
45.00
1,962.74

Note: The Company reported record-high revenue, operating profit, ordinary profit and net income based on JapaneseGAAP in the year ended March 31, 2006. Cash dividends of ¥60.00 per share were declared for the year ended
March 31, 2006, an increase of ¥10.00 from the year ended March 31, 2005.

Net Income (U.S. GAAP)Net Income (Japanese GAAP)(In billions of yen)

(In billions of yen)

60

60

50

50

40

4030

30

20

20

10

10000203040506

Note: In the year ended March 31, 2006, net income declined ¥1.8 billion, to ¥50.3 billion. This result
was despite a ¥9.4 billion increase in income from continuing operations, to ¥51.2 billion, reflecting
increases in operating income and gain on sales of securities, net, and was primarily attributable
to the absence of ¥9.9 billion in income from discontinued operations, net of tax, recorded in theprevious period, owing to the sale of the Company’s education services business and certain realestate properties for lease.
Net income in the year ended March 31, 2005, rose ¥28.7 billion, to ¥52.1 billion. This result
reflected ¥9.9 billion in income from discontinued operations, net of tax, and the absence of ¥8.8
billion in losses recorded in the preceding period owing to a revision of pension plans.

SECOM CO., LTD. ANNUAL REPORT 2006

In millions of yen

0203

040506

Note: In the year ended March 31, 2002, the Company revised its pension plans and changed the accounting method for unrecognized actuarial gains and losses. Unrecognized actuarial gains and losses,
which had been amortized using the straight-line method over the average remaining service periodprior to the year ended March 31, 2002, were charged to income on an “as-incurred” basis. The
Company also recorded unrecognized transition assets/obligations as a one-time charge to income.
In addition, prior service costs were charged to income on an as-incurred basis. This resulted in adecrease in income before income taxes of ¥35.0 billion.
One-time recognition on an as-incurred basis for pension benefits is not permitted under U.S. GAAP.
Accordingly, unrecognized actuarial gains and losses, unrecognized transition assets/obligations andprior service costs were amortized on the basis of the average remaining service period in theaccompanying consolidated financial statements prepared under U.S. GAAP.