SECOM REPORT

2022
Year ended March 31, 2022

ProﬁleSECOM CO., LTD., a pioneer in Japan’s security services industry, was established in 1962. Since then, the Company has sought
to create innovative services that benefit society as a whole, in line with its mission of helping achieve a society free fromconcerns.
Today, SECOM, comprising the parent company and the companies of the SECOM Group, strives to create services andsystems that deliver safety and peace of mind, as well as make life more comfortable and convenient, whenever and wherevernecessary, for anyone and everyone, and in so doing to realize its Social System Industry vision, which describes a frameworkof distinctive, integrated services and systems. The Company’s extensive business portfolio currently encompasses security
services, fire protection services, medical services, insurance services, geospatial information services, business process
outsourcing and information and communications technology (BPO and ICT) services, and other services.
Operating in an environment characterized by significant upheaval and amplified uncertainties, in 2017 SECOM formulated
the SECOM Group’s Vision for 2030 to clarify its strategic direction through to 2030 as it works to realize its Social System
Industry vision. Guided by the SECOM Group’s Vision for 2030, the Company is building the ANSHIN* Platform, a service
infrastructure designed to provide peace of mind to people in their everyday lives, as well as to society as a whole. SECOM isalso collaborating with partners who share its philosophy to create new value that will underpin the launch and cultivation of
new businesses and the expansion of existing businesses, ensuring its ability to deliver enduring peace of mind to people inan ever-changing society. Through these and other efforts to address social imperatives, SECOM continues working to achievesustainable growth together with society.
SECOM has also expanded into 17 countries and territories outside Japan. Currently, Group companies extend distinctive
SECOM security services, fire protection services, medical services, geospatial information services, and BPO and ICT services
customized to reflect local needs and sensibilities. Going forward, SECOM will continue working to broaden global awareness of
the SECOM brand.
*ANSHIN is Japanese for “peace of mind.”Corporate Philosophy
MissionOur role andraison d’être

MissionVisionOur ideal view of SECOM
in the future

VisionValues

Our shared beliefs
and guiding principles

ValuesCONTENTS
2 Financial Highlights

28 SECOM Today

4 A Message to Stakeholders

42 ESG Initiatives

12 The Path to Value Creation

60 SASB Index

14 SECOM at a Glance

Financial Information and References

16 The Value Creation Process

61 Financial Review

18 The SECOM Group’s Vision for 2030

66 Consolidated Financial Statements

22 Sustainability

73 Other Financial Data

24 SECOM’s Core Competitive Advantages

77 Corporate Information

25 Maximizing Income from On-Line Security Systems

81 Regarding Publication of SECOM Report 2022

26 Special Feature

We see our mission as being to help achieve a society free from concerns. Accordingly, throughout our history wehave sought to create services and systems that benefit society as a whole.

In 1989, we declared our commitment to the Social System Industry. We continue to promote bold initiatives withthe aim of realizing this vision.
Our Social System Industry vision describes a framework of innovative and integrated services and systems that deliver safety andpeace of mind, as well as make life more comfortable and convenient, whenever and wherever necessary, for anyone and everyone.

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

SECOM’s Philosophy
SECOM’s Philosophy has been passed down through generations of employees since our establishment and continues
to be the driving force behind all we do. This philosophy emphasizes a refusal to be content with the status quo and acommitment to doing 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 only to SECOM but also to society as a whole. We have published SECOM’s
Philosophy in the form of a handbook, which has been distributed to employees in Japan and overseas, and continue tocapitalize on training and other opportunities to share the philosophy and advance its implementation.

SECOM REPORT 2022

1

Financial Highlights

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

2022

2021

2020

2022

¥1,166,098
156,402
107,7312,183,466
1,209,512¥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$ 9,558,180
1,281,982
883,040
17,897,264
9,914,032

In yenIn U.S. dollars¥ 399.23
170.0085.00
4,988.25$ 4.04
1.43
0.74
45.46

¥ 492.83
175.0090.00
5,546.11¥ 411.95
170.0085.00
5,233.74

Notes: 1. Yen amounts have been translated into U.S. dollars, solely for the convenience of the reader, at the approximate rate of ¥122=US$1, the rate
prevailing on the Tokyo Foreign Exchange Market on March 31, 2022.
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 28, 2022, approval was granted for a proposal to pay a year-end dividend of ¥90.00 for the year ended March 31, 2022.

Net income attributable to SECOM CO., LTD.
(U.S. GAAP)(In billions of yen)

120
107.7

100
91.4

96.6

80

89.7

87.1

89.9

2019

2020

2021

60
40
20
0
2017

2018

2022

Note: In the ﬁscal year ended March 31, 2022, net income attributable to SECOM CO., LTD., advanced ¥17.8 billion, to ¥107.7 billion. The principal factor
behind this result was higher operating income. This was due to increases in net sales and operating revenue, and in operating income, in threesegments. Higher results in the security services segment were underpinned by increases for electronic security services in Japan and overseas andfor static security guard services. The ﬁre protection services segment beneﬁted from a concentration of proﬁtable projects during the period. The
medical services segment was bolstered by improvements in the earnings of partner hospitals in Japan and a general hospital in India.
In the year ended March 31, 2021, net income attributable to SECOM CO., LTD., advanced ¥2.8 billion, to ¥89.9 billion, notwithstanding thenegative impact of COVID-19 in certain areas. This reﬂected an increase in operating income, which was bolstered by favorable results in theinsurance 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.

2

SECOM REPORT 2022

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.

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

2022

2021

2020

2022

¥1,049,859
143,499
153,186
94,273
1,907,755
1,256,036¥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$ 8,605,402
1,176,221
1,255,623
772,730
15,637,336
10,295,377

In yenIn U.S. dollars¥ 408.14
170.0085.00
4,742.58$ 3.54
1.48
0.74
42.19

¥ 431.27
180.0090.00
5,147.30¥ 342.17
170.0085.00
4,958.18

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, 2022, was 41.7%.

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

100
92.0
80

84.2

87.0

94.3
89.1
74.7

60

40

20

0
2017

2018

2019

2020

2021

2022

SECOM REPORT 2022

3

A Message to Stakeholders

We are working to improve
productivity and investing in growth
to create the ANSHIN Platform andachieve sustainable growth.
Ichiro Ozeki
President and Representative Director

Consolidated operating results
Despite a persistently challenging environment, owing
largely to COVID-19, the Japanese economy showed signs ofrecovery in the fiscal year ended March 31, 2022, as
corporate earnings and private sector consumption, among
others, rallied. While economic and social activity is
gradually returning to normal, downside economic risks
associated with the evolution of the pandemic around theworld, fluctuations in financial and capital markets, andgrowing uncertainty regarding the global situation and rising
raw materials prices, continue to attract attention.
Against this backdrop, we pressed forward with ongoing
efforts to realize our Social System Industry vision, in
accordance with our objective of delivering safety and peaceof mind, as well as to make 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 other services

4

SECOM REPORT 2022

businesses. We also accelerated these efforts by clarifying
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.
Consolidated net sales and operating revenue for theperiod under review amounted to ¥1,166.1 billion, an
increase of 2.7%, or ¥30.8 billion, while operating income
advanced 15.2%, or ¥20.6 billion, to ¥156.4 billion. This
primarily reflected increases in net sales and operating
revenue, and in operating income, in the security services
segment, which were underpinned by increases forelectronic security services in Japan and overseas, and forstatic security guard services, as well as in the fire
protection services segment, which benefited from a
concentration of profitable projects during the period, andthe medical services segment, which was bolstered by
improvements in the earnings of partner hospitals in Japanand a general hospital in India. Net income attributable to
SECOM CO., LTD., climbed 19.8%, or ¥17.8 billion, to ¥107.7
billion.

Initiatives in the period under review
With COVID-19 continuing to impact society, we believe thatthe greatest contribution we can make to society is to do ourutmost to maintain services while placing our highest
priority on the safety of customers and employees.
Accordingly, we have taken a number of key steps to help
curb the transmission of the virus, thereby safeguarding
business continuity and our ability to provide uninterrupted
around-the-clock services. I am particularly proud of SECOM
employees, who even during the pandemic have conducted
themselves with a deep sense of their mission to deliversafety and peace of mind to customers. In addition, as an

official partner (Security Services and Planning category),
we contributed to the safe and secure staging of the Olympic
and Paralympic Games Tokyo 2020, held from July throughSeptember 2021, for which we provided security atcompetition venues and other facilities.
During the period, we also continued to implement thefour priority strategies I have advocated since taking office
as president and representative director in June 2019:
expand monitoring services, strengthen our overseas
operations, reinforce our BPO and ICT services business, andimprove productivity.

Expand monitoring services
In Japan, a super-aged society, ensuring elderly parents
living apart can live in safety and comfort is a concern formany people. The pandemic has made it difficult for people
to visit their parents, exacerbating the need for assistanceon this front. In this environment, people are increasingly
seeking one potent solution in home security services thatenables family members to remotely monitor parents anddispatches emergency response personnel if necessary.
In June 2021, we launched SECOM Monitoring Service
for Seniors, an optional service available to SECOM Home
Security subscribers. With this service, family members cancheck up on their parents in an unobtrusive manner toconfirm any variations in the frequency or nature of daily
activities by accessing information captured by SECOM
Home Security sensors installed in the home of a seniorusing a smartphone app. For monitoring individuals withhealth concerns, we are also developing various new
sensors that facilitate the real-time detection of, forexample, changes in posture, which could have been caused
by a fall, or whether a sleeping individual is breathing, forwhich we are currently conducting verification tests at a
SECOM-operated nursing home. To raise awareness of
SECOM Home Security in the elder care market, we steppedup advertising and publicity activities, including by creating
new television advertisements, an effort that has yieldedhighly positive results.

The need for monitoring services is not limited to eldercare. Among increasingly health-conscious young andmiddle-aged individuals, demand is expanding for services
that allow self-monitoring of physical condition. In line with
our “Connection” strategy—one of four strategies forcreating the ANSHIN Platform—in February 2022, welaunched SECOM Cantabile, which makes it possible forexisting SECOM Home Security subscribers to link theirhome security system with an Apple Watch or iPhone simply
by installing an app, which they can tap to arm or disarm
their home security system. The app also stores Apple
Watch health data, such as calories expended, steps taken,
sleep time, and blood oxygen level, which the subscriber canuse in everyday health management. We have also begun
promoting marketing efforts tailored to younger customers,
many of whom have an Apple Watch, acknowledging that
their monitoring needs often differ from those of seniors.
We continue to advance cloud-based monitoring services
that target the healthcare management needs of diverse agegroups. Pursuing an open and interactive approach that
includes collaborating with other companies offering avariety of key systems and services, we are making use ofGroup management resources in areas such as medical
services, BPO and ICT services to explore new possibilities insuch areas as health tech.

Strengthen overseas operations
With Japan’s population expected to continue declining overthe long term, we believe that strengthening our operationsin promising overseas markets is essential to ensuring

sustainable growth going forward. As a first step, we will
strive to boost consolidated net sales and operating revenue
generated overseas to 10% or more of the consolidated total.

SECOM REPORT 2022

5

A Message to Stakeholders

With the aim of expanding our overseas operations throughboth organic growth and M&As, we are reinforcing thecapabilities of employees and pursuing a variety ofstrategies and initiatives.
The popularity of on-line security systems tends toexpand in line with national and regional economic growth.
We are extending our operations in promising markets,
focusing on Asia, including by providing services that reflect
the needs and sensibilities of the region’s growing wealthy
and middle classes, rather than insisting on offering
services and systems developed for the Japanese market.
Most of the countries and territories in which we haveoperations have a well-established foundation for theprovision of on-line security systems in place. We haveestablished the ASEAN Innovation Center in Bangkok and the
China Innovation Center in Shanghai and are promoting thedevelopment and deployment of highly convenientinteractive on-line security systems that use smartphones.
In Thailand, we launched a new highly scalable cloud-based
on-line security system for small and medium-sizedbusinesses and for homes and commenced related
advertising and publicity activities. Advertisements featuringwell-known local actors have been well received andcontinue to attract enthusiastic reviews, bolstering
recognition of the SECOM brand and contract numbers.
Looking ahead, we will continue to broaden our presence inThailand, as well as to capitalize on know-how gained in thismarket to expand into other countries and regions, thereby
accelerating organic growth.
Cultivating new markets in various countries andterritories is also crucial to driving the growth of ouroverseas operations. For this reason, we recently
established a business development team that is charged
with exploring potential business alliances and M&As withthe purpose of expanding the geographical breadth of ourbusiness activities. Secom Smart (Malaysia) Sdn. Bhd. and
Secom Smart (Singapore) Pte. Ltd., both of which joined the
SECOM Group in the autumn of 2020, are expanding digitalmarketing initiatives and promoting the increased use ofcloud-based security systems. In Turkey, a market weentered in 2019, contract volume has expanded significantly
thanks to strong appreciation for meticulous Japanese-styleservices and the outstanding cost–performance benefits of
our on-line security systems. Going forward, we willcontinue to seek business alliances and M&As that offer
benefits while carefully weighing country risk.

Reinforce BPO and ICT services businessIn addition to providing high-quality and highly reliable data
center services around the clock, we also operate one ofJapan’s largest data center networks, providing outstanding
connectivity to cloud-based services and creating an IT
infrastructure that is indispensable for many companies. To
meet expanding demand for data center services in today’s
increasingly digital, cloud-based society, we plan to open ahyperscale urban data center in the Tokyo metropolitan areain 2024, as well as a new data center adjacent to an existing
facility in 2025. We are also pressing ahead with theestablishment of small-scale data centers in Kyushu andHokkaido to meet demand driven by rapid digitization indifferent areas of the country.
Sales staff are striving to propose business continuity
planning (BCP) support services, as well as various cloudbased services that assist efforts to digitalize and streamline
operations, to users of our on-line commercial security
systems. To make this possible, we are expanding our ICT
service offerings, deploying ICT-savvy personnel to security
services sales teams across the country, and working to
improve the ICT literacy and proposal development
capabilities of sales staff.

Improve productivity
Japan’s declining labor force is expected to further
complicate the challenge of securing human resources in
the future. Accordingly, improving productivity is essential
for us to continue achieving growth. In our security services
business, we are updating in-house IT systems so that
we are positioned to handle an increase in work volume
resulting from higher subscriber numbers and the
expansion of services with current staffing levels. We

6

SECOM REPORT 2022

made the decision to implement this update, having carefully
considered the scale of current investments and exposure tovarious risks, with the goal of boosting the productivity of
individual employees and will roll out related initiatives overthe next few years.
In another move designed to enhance productivity, we
took steps to optimize the siting of SECOM control centers.
Additionally, in April 2022 we shifted the back-office support

components of sales, operational, and administrative
functions of individual offices to an administrative services
group, thereby breaking down organizational silos andcreating a streamlined, more efficient configuration. We willcontinue working to optimize our organization to further
increase overall productivity.

The transformation of the security services business
COVID-19 has brought far-reaching changes to all facets oflife. Many of these changes, particularly those affecting
business practices, consumer behavior, and work styles, arelikely to remain even after the pandemic subsides, as theworld transitions to a new normal. At the same time, wemust continue to address challenges associated with Japan’s
super-aged society, notably a shrinking labor force, as wellas with the increasing frequency of climate change–related
natural disasters and growing requirements for information
security arising from expanded digitalization. SECOM
customers are seeing new needs for enhanced security andtroubleshooting as a consequence of reduced staff numbers
and a shift to unmanned formats for retail facilities, as well
as for efficient employee attendance management systems,
and improved information security and document
digitalization to accommodate the expansion of telework andwork style reforms. With people increasingly opting to workfrom home and making frequent use of delivery services,
needs are also rising for a broad range of services that
ensure safe and secure home environments. The pandemic

has also further spurred demand for monitoring services
that help protect elderly parents and other family members,
and for remote healthcare services.
Technologies are evolving at an astounding pace. The
security services industry is expected to gain from the
spread of artificial intelligence (AI), Internet of Things (IoT),
and 5G mobile communications technologies, as well asfrom rapid progress in the area of sensing technologies, allof which are forecast to support the development of IoT
services that will help address challenges in both everyday
life and in business. The compatibility of on-line security
systems with IoT services will enable us to greatly expand
the menu of services we offer. In addition, advanced laborsaving technologies are projected to benefit security guard
services, particularly by facilitating the use of robots. In the
security services industry of the future, we believe that thekey to dramatic growth will be our ability to incorporate newtechnologies to deliver new value to customers, as well as toleverage such technologies to improve our own productivity.

Growth strategy: Driving the evolution of on-line security systems
As a company with on-line security systems as its corebusiness, we see this era of transformation, occasioned bydramatic socioenvironmental changes and technologicalprogress, as an important business opportunity. We have thelargest customer base of any security services company inJapan. This has enabled our R&D team to accumulate
extensive know-how in this area. Rather than being shackled
by its own technological prowess, the team also collaborates
actively with various partners to encourage open innovation,
allowing it to integrate advanced technologies from diverse
sources. Our extensive service network, which organicallylinks the IT systems and human resources responsible forthe provision of SECOM on-line security systems around theclock, ensures uniformly high-grade services across Japan.
We have actively promoted System Security AZ, an all-inone security system offering excellent scalability that was
originally launched in 2019, as our core commercial on-line

security system. Unlike previous systems, which were
tailored to the industries, business scales and operations ofsubscribers, AZ uses image sensing to deliver an
outstanding monitoring performance and offers remote
operation from a smartphone, camera monitoring, accessmanagement, and employee attendance management. These
functions can be selected to meet individual customer needs
and new functions can be added in the future. In July 2022,
we launched AZ-Air, a new security system targeting small
and medium-sized commercial facilities and offices, aparticularly promising market. In addition to the high-grade
monitoring and other functions of AZ, AZ-Air offers acompact main unit and wireless connection to sensors,achieving both improved aesthetics and pricecompetitiveness. We look forward to this new model
contributing to a sharp increase in sales of the AZ seriesof on-line security systems.

SECOM REPORT 2022

7

A Message to Stakeholders

Sensing and other technologies are evolving rapidly. As acompany with a huge customer base and more than 2.4
million on-line security systems installed in Japan, we
attract a wide range of partners, from major corporations tostart-ups, with diverse technological capabilities. Throughopen innovation with such partners, we will continue toprogress as a leader in the provision of services that makeuse of the latest technologies. Ongoing efforts to develop
and extend new services that make use of the technologies
of our open innovation partners will position us to respondswiftly and flexibly to increasingly diverse and complex
customer needs. By emphasizing not only highly convenient
new subscription-based services but also robust backup in
the form of highly trained emergency response personnel
when circumstances demand, we will continue to provide
distinctively SECOM services and systems that ensure ourability to be there for customers whenever we are needed.
An extensive lineup of services not only attracts new
customers, leading to new contracts, but also inspires
existing customers to take advantage of multiple services,helping strengthen the customer–provider relationship andencouraging longer contract periods. In other words,
strengthening our service offerings will help increase
contract volume, boost contract fees, and prevent contract
cancellations, thereby maximizing profits.
Making the most of opportunities for dramatic growthnecessitates timely investments. The SECOM Group Road
Map 2022 calls for focused outlays aimed at expanding thecapacity of the core system used in our on-line security
systems to accommodate the evolution of technologies. It isalso necessary to replace equipment currently installed on
the premises of existing commercial security services
subscribers with new systems such as System Security AZ
that support new technologies. Because we maintainownership of security equipment and rent it to subscribers,
we have always replaced older equipment with newer
models when appropriate. To encourage the use of newservices, we are accelerating the pace of replacement byproceeding with a 10-year investment plan to graduallyreplace equipment currently in use, beginning with
subscribers who have used currently installed equipment
the longest. As mentioned earlier, we are also updating
in-house IT systems so that we can handle an increase inwork volume resulting from increased subscriber numbers
and an expanded service lineup with current staffing levels.
The deployment of advanced technologies can also be
expected to dramatically improve security guard services, aswell as to ease the physical demands on emergency
response personnel. A reduced physical burden will increase
the capacity of our emergency response infrastructure toprovide services around the clock, whenever needed, thus
improving productivity.
In addition to conventional services, involving monitoringwith sensors and support by emergency response
personnel, in the years ahead we will introduce a wide rangeof new subscription-based services that leverage data
science and are backed up by emergency response
personnel. By thus realizing new distinctively SECOM
services and systems, we will seek to position ourselves ona new growth trajectory.

Growth strategy: Taking security guard services to a new level
The falling number of working-age people in Japan is
another factor that is complicating the challenge of ensuring
a sufficient labor force. In the security services industry, too,
there is a need to reduce the burden on and improve
working conditions for security guards. One way we are
addressing this issue is by working to create security
services that leverage advanced technologies. Of particularnote, we have explored ways to more effectively use
technology in the provision of static guard services at officebuildings and commercial facilities. This has led to therealization that replacing some static guards with devices
and systems, yielding an optimal combination of people andmachines, makes it possible to maintain or even improve the8

SECOM REPORT 2022

quality of security provided while at the same time easing
the physical demands on guards.
In the area of management and operation for large-scale
facilities, we have gained extensive experience and knowhow by working to reduce labor requirements for static
guards through the partial automation of access control, as
well as opening and closing procedures, and the installationof surveillance cameras. We have also leveraged advanced
technologies, including in the trial introduction of a new
AI-powered image recognition system for major events. In
January 2022, we launched the AI-powered Virtual Keibi
System, which features a virtual character that performs
security, receptionist, and other duties, and security robotcocobo, which makes use of AI and 5G technologies toautonomously patrol commercial facilities in place of
security guards. In addition to further expanding ouraccumulated expertise in ways to reduce labor
requirements, we will further expedite efforts to deal withthe declining number of static guards, including by pursuing
open innovation aimed at developing new systems.
In July 2022, Senon Ltd., a Japanese provider of static
guard services and electronic security services, as well as
airport security services and vehicle fleet operation services,
joined the SECOM Group. With competitive strengths in theprovision of static guard services for large commercial
facilities, Senon also has an industry-leading track record in
airports security services. We look forward to capitalizing on
Senon’s management resources and know-how, as well as

our own, to promote the mechanization of static guard
services and develop security systems that combine thebest features of people and equipment. We will also continue
to expand our security services for large-scale facilities suchas airports, convention centers, and sports stadiums, as wellas to take steps aimed at bolstering profitability.

Investments in Growth
As mentioned earlier, we are investing in systems andreplacing subscribers’ equipment with new models
compatible with the evolution of on-line security systems
while also updating in-house IT systems to improve
productivity. We are also investing in human resources,
confident that our employees remain highly motivated to beagents of change, rather than being content with the statusquo, by implementing the first across-the-board base salary
increase in five years.
On another note, we are investing to strengthen our
advertising and publicity activities with the goal of further
cultivating demand in the emerging domestic market formonitoring services, as well as to encourage greaterawareness of the SECOM brand in overseas markets. To meetgrowing demand for data center services, we are investing tobuild new data centers and to improve the quality andmanagement of IT systems for various services provided.

Because all investments in growth are aimed essentiallyat expanding earnings and improving productivity, we fully
expect they will yield appropriate returns. Growth throughM&A activities is also a promising option. We are targetingcompanies in the area of physical security, cyber security,
BPO and ICT services, and healthcare, as well as start-ups
with outstanding technological capabilities, and will selectcompanies in which to invest by looking at both investment
efficiency and time frame. Investments in growth areinvestments in our future. If we are not decisive in making
investments at this juncture, the pace of our growth in the
future will surely be hindered. One of my responsibilities isto help build a solid foundation for SECOM to continue
advancing forward, so that in the future people will look backand recognize the wisdom of the moves we are making now.
Accordingly, I will continue to approach these investments ingrowth from a medium-term perspective.

Capital Management
Our ability to make necessary investments in growth at the
optimal time in an ever-changing socioeconomic environmentis due to our solid income foundation, which is attributable toour portfolio of stable recurring-revenue–based businesses,
notably on-line security systems. We earmark cash generated
by such stable recurring revenue–based businesses, keeping
in mind the importance of balancing investments in growth,
operating funds, and returns to shareholders. Given

increasingly diverse social imperatives and the rapid
evolution of technology that is propelling the fundamental
transformation of the security services industry, investments
in growth necessarily take precedence at the moment. Whileit almost goes without saying that such investments are a
growth driver that enhances corporate value, there are also
challenges. Accordingly, our policy is to allocate theseinvestments from equity.

SECOM REPORT 2022

9

A Message to Stakeholders

Operating funds are the funds needed to provide services
and ensure our ability to provide services without
interruption and ensure business continuity regardless ofchanges in the operating environment, thereby fulfilling our
responsibility to deliver safety and peace of mind. SECOM
Group companies differ in terms of working capital andcapital investment needed to guarantee business continuity.
Because risk levels for these companies vary depending on
the nature of their businesses, this is also taken into accountin determining the appropriate level of operating funds.
We have always seen the provision of fair returns toshareholders as a crucial management task. With a businessmodel centered on recurring revenue–based businesses that

continue to expand thanks to investments in growth, weseek to ensure a consistent and stable distribution of
surplus in line with our payout ratio target. For the fiscal
year ended March 31, 2022, dividends for the full term—therecord dates for which fall during the period—amounted to¥180.00, an increase of ¥10.00 from the previous fiscal year.
Between February and June 2022, we repurchased our own
shares for the first time in approximately 13 years, with a
total repurchase price of approximately ¥30 billion. We willcontinue seeking to return wealth to shareholders throughshare repurchases while closely monitoring our cash
position, the scale and timing of investments in growth, andtrends in share prices.

ESG initiatives
COVID-19 and rapid digitalization have resulted in theincreasing diversity and sophistication of our customers’
needs for safety and peace of mind. Against this backdrop,
our greatest competitive advantage is our human resources,
who stand with customers around the world, listening
closely to their concerns and responding to demand related
to the need to ensure security in a connected society and to
rely on others.
Recognizing that the sense of mission and motivation felt
by employees bear directly on the quality of SECOM services,
we seek to secure and train enthusiastic individuals, as wellas to promote diversity and inclusion initiatives and create
comfortable work environments. In the spring of 2022, we
implemented the first across-the-board base salary increasein five years.
The realization of our corporate vision depends on
rigorous corporate governance, indispensable to theappropriate management of our operations, and each andevery employee acting in accordance with SECOM’s
Philosophy and working to fulfill their potential. We are also
taking ongoing steps to enhance the effectiveness of our
Board of Directors, as well as encouraging outside membersof the Board of Directors and the Audit & Supervisory Board
to participate actively in free and open discussion. We
currently have one female outside director, but constructive
opinions have been expressed regarding further increasing
the diversity of the Board’s composition. Accordingly, we arecommitted to fostering female leaders, with the aim of
producing more female directors in the future.
We can only provide SECOM security services if
customers trust us and are willing to enter into contracts.

10

SECOM REPORT 2022

Given that our core business essentially means customers
hand over the keys to their business or home, it is criticalthat each and every employee truly understands SECOM’s
Philosophy, which has been handed down throughgenerations of SECOM employees. As such, we pursue
rigorous governance, requiring employees to act in strict
compliance with the SECOM Group Code of Employee
Conduct and the Behavioral Guidelines Based on SECOM’s
Philosophy. Also, because we are entrusted with importantcustomer information, all employees must be highly awareof information security. As a provider of BPO and ICT
services, we work to maintain a stringent information
security risk management system and to ensure that all
employees observe our basic information security policy andrules, making it possible for customers to use our services
with confidence.
Efforts to decarbonize are accelerating worldwide. We
have set a target for achieving carbon neutrality—net zero
greenhouse gas emissions—by 2045. All SECOM Group
companies are working to achieve this target which in July
2021 was certified under the Science Based Targets
initiative (SBTi). We have also joined Renewable Electricity
100% (RE100), a global renewable energy initiative, with theobjective of shifting entirely to electricity generated using
renewable energy by 2045.
Our Sustainability Promotion Office, which plays aleading role in environmental, social and governance (ESG)related initiatives, promotes a variety of activities, including
holding study sessions to raise employee awareness ofsustainability and further understanding of the United
Nations’ Sustainability Development Goals (SDGs). In

addition, we have prepared booklets and other materials
to inform employees and customers about SECOM’s

ESG initiatives, which are also used widely in sales andrecruitment activities.

Growing businesses and ensuring sustainable growth for SECOM
The protracted COVID-19 pandemic, together with instability
in the global situation and rising prices for crude oil and raw
materials, continue to underscore persistent uncertainty, asa result of which we are seeing customers’ willingness toinvest in security increasingly tempered by concerns overthe current conditions. While we believe that the impact ofthese and other factors on our recurring revenue–generating
businesses, notably on-line security systems for commercial
and home security services, will be negligible, we expect
sales of security equipment to decline. We also anticipate thepostponement or downsizing of large-scale and profitableprojects. In addition, we anticipate that the profitability ofdata centers, which use significant amounts of electricity,
will be squeezed if electricity costs continue to climb.
Despite these circumstances, we will continue to implement
crucial forward-looking investments in systems and people
and incur necessary expenses to further reinforce ouradvertising and publicity activities, with the aim of ensuring
sustainable growth.
In recent years, the world has suffered multiple major
calamities, including the spread of COVID-19 andincreasingly frequent natural disasters. Regardless of thelikelihood of major risks and incidents ahead, we believethat there is nothing for which we cannot prepare. While it isdifficult to predict what sort of risks will arise, we will notneglect advanced preparations and training so that we canminimize the impact thereof by ensuring each and every
employee is able to make timely and accurate decisions
based on SECOM’s Philosophy and respond effectively andwith agility. Regardless of the seriousness of such risks, wewill work tirelessly to ensure the safety of our customers,
and we believe this will continue to ensure customers are
satisfied with our services and happy they turned to SECOM.
Underpinning everything we do is the uniquely SECOM
identity, unchanged since our founding, which emphasizes
not being bound by existing conventions and concepts anddoing what is right for society without compromise. Ensuring
this unique identity is shared by everyone in the SECOM
Group, thus permeating the entire organization, is central to
our ability to evolve continuously as a cohesive unit capableof responding to changing social imperatives.

On July 7, 2022, we celebrated SECOM’s 60th
anniversary. While this is certainly an important milestone,
we recognize it as simply one point on the long timeline of
our history. Today, the SECOM name is synonymous withsafety and peace of mind, evidence of the solid foothold wehave established in the security services market. However,
we have no intention of resting on our laurels. With a senseof urgency, an understanding that complacency is the
beginning of decline, and a refusal to be content with thestatus quo, we remain committed to cultivating new markets
and developing groundbreaking new services and systems
that are beneficial to society.
I am confident that our current endeavors will bear fruit.
I hope our stakeholders continue to expect great things fromSECOM and look forward to their ongoing support andguidance.
July 25, 2022

Ichiro Ozeki
President and Representative Director

SECOM REPORT 2022

11

The Path to Value Creation
SECOM has pioneered the creation of services that deliver safety and peace of mind. The
Company’s history is also one of being the ﬁrst in Japan to take on challenges. Going forward,
we will continue to develop and provide innovative services and systems that accelerate therealization of our Social System Industry vision.
1991- Medical services
1983- BPO and ICT services
1978- Overseas security services
1974- Fire protection services
1962- Security Services
1962

1965

1970

1975

1980

1990

1995

Safety (“ANZEN”)
industry

Security service industry

1985
Launches information security services

1962
Established as Nihon Keibi Hosho Co., Ltd. (name was later changed to SECOM
CO., LTD.)
Established as Japan’s ﬁrst commercial security services provider

1988
Establishes presence in Thailand

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

1989
Declares 1989 the ﬁrst year of the Social System Industry
vision1966
Develops SP Alarm, Japan’s ﬁrst on-line security system

1991
Establishes presence in the United Kingdom and Malaysia
Begins providing visiting nurse services

1974
Lists on the Second Section of the Tokyo Stock Exchange
Forms business alliance with Nohmi Bosai Kogyo Co., Ltd. (currently Nohmi
Bosai Ltd.), Japan’s top provider of ﬁre protection services
1975
Commences operation of the world’s ﬁrst computerized security system (CSS)
1978
Establishes joint venture Taiwan Secom Co., Ltd., in Taiwan, its ﬁrst overseas
marketMoves up to the First Section of the Tokyo Stock Exchange
1981
Introduces My Alarm (currently SECOM Home Security), Japan’s ﬁrst home
security system
Establishes joint venture Korea Security System Co., Ltd. (currently SI
Corporation) in the Republic of Korea (ROK)1983
Begins providing information and communications-related services
Changes name from Nihon Keibi Hosho Co., Ltd. to SECOM CO., LTD.

Security services

Insurance services

Overseas security services

Geospatial information services

Fire protection services

BPO and ICT services

Medical services

12

1985

SECOM REPORT 2022

1992
Establishes presence in the PRC, Singapore and Australia
1994
Establishes presence in Indonesia
Begins offering Japan’s ﬁrst remote image diagnosis
support service
1996
Commences management of residences for seniors
1998
Invests in Toyo Fire and Marine Insurance Co., Ltd. (currently
Secom General Insurance Co., Ltd.)
Launches certiﬁcation authority business
1999
Invests in Pasco Corporation, a leading provider of aerial
surveying services
2000
Establishes the Secure Data Center
2001
Develops and releases the COCO-SECOM mobile security
systemLaunches MEDCOM, Japan’s ﬁrst unrestricted cancer
treatment policy

Core competitive advantages

1999- Geospatial information services
Net sales and operating revenue¥1,166.1 billion

1998- Insurance services

A powerful brand
The largest customer
base in Japan’s security
services industry
Know-how andexperience
Name recognition andcustomer trust
Ability to createbusiness opportunities
Top-class talent

2000

2005

2010

2015

2022

A recurring revenue–based
business modelSocial System Industry
2004
Introduces the SECOM AED Package Service
Launches the SECOM Safety Conﬁrmation Service
2006
Establishes presence in Vietnam
Acquires newly issued shares in Nohmi Bosai, which becomes a consolidated subsidiary2007
Launches ground surveying services using synthetic aperture radar (SAR) satellite images

Stable, expanding
earnings
High marginal rate of
returnResources to facilitate
active investment ingrowth2011
Establishes presence in New Zealand2012
Acquires all outstanding shares in Nittan Co., Ltd., Japan’s third-largest ﬁre protection
services provider, making the company a consolidated subsidiary
Acquires At Tokyo Corporation, one of Japan’s leading data center services ﬁrm
2014
Establishes presence in Myanmar
Opens Sakra World Hospital, a general hospital, in India
2015
Acquires Asahi Security Co., Ltd., a leading provider of cash collection and delivery
services, which becomes a consolidated subsidiary2017
Acquires BPO services ﬁrm TMJ, Inc.
2019
Establishes presence in Turkey
2022
Shifted to the Prime Market, owing to a restructuring of the Tokyo Stock Exchange’s
market segments.
Acquires Senon Ltd., a provider of comprehensive security services
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 other income.” Owing to a change in the Company’s settlement date,the ﬁscal year ended March 31, 1990, was a transitional four-month period.

Group strengths
Ability to leveragecomprehensive
strengths of diverse
businesses to resolve
issuesMultiple per-customer
contracts and a high rateof contract renewal
Efficient sales activities
that capitalize on
collaboration across theGroup

SECOM REPORT 2022

13

SECOM at a Glance
Segment

Net Sales and Operating Revenue(Breakdown is based on consolidated net sales and operating revenue(excluding intersegment transactions) for the ﬁscal year ended March 31, 2022.)

Security Services

3.0%
9.9%
4.8%
4.4%

Fire Protection Services¥1,166.1

48.3%

billion
16.8%
Medical Services

12.8%

Operating income
Insurance Services

3.5%
8.4%
2.2%
4.9%
7.8%

¥156.464.9%

Geospatial Information
Servicesbillion
8.3%

BPO and ICT Services(Breakdown is based on total operating income for seven segments, prior toadjustment for corporate expenses and eliminations (¥174.6 billion).)Security Services
Fire Protection Services
Medical Services
Insurance Services
Geospatial Information Services
BPO and ICT Services
Other Services

14

SECOM REPORT 2022

Other Services

Principal operations

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.
Asahi Security
Co., Ltd.
Secom plc

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

Home medical services
Operation of residences
for seniors
ICT-based medical
services
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.

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 fire insurance 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.

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*3

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 peace of mind and make life more
comfortable and convenientNohmi Bosai Ltd.*2
Nittan Co., Ltd.

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

*1 For more information, please see pages 77–80. *2 Listed on the Tokyo Stock Exchange Prime Market *3 Listed on the Tokyo Stock Exchange Standard Market

SECOM REPORT 2022

15

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.

Business model based on the resolution of issues
Megatrends continue todrive the evolution ofsocial imperatives

Megatrends

Management foundationand strengths

Business areas

Human Resources
A corporate philosophy shared by all
employees
64,421 Group employees*1

Security Services

Organization

Demographic change
Technological evolution
Increasingly severe
environmental issues
Shift of global economic
center/urbanization(Growth of Asian economies)

Social imperatives

Crimes/accidents

Illness/aging

An integrated portfolio that marshals
diverse businesses
178 Group companies in sevenbusiness areas*2
Operations in 17 countries andterritories overseas

Fire Protection Services

Medical Services

Technologies
Business model that fuses people
and technologies
Approximately 2,700 emergency
depots in Japan
Around 60,000,000 security sensors
installed at subscribers’ premises

Insurance Services

Performance
Close ties with society and a strong
track record
More than 3.6 million security
service subscribers
Over 7.9 million SECOM Safety
Conﬁrmation Service users

Geospatial Information
Services

Knowledge

BPO and ICT Services

Know-how cultivated in Japan
Deployment overseas of initiatives
developed in Japan, a front runner inaddressing challenges associatedwith a super-aged society andnatural disasters

Other Services

ValuesCyber crimes

Naturaldisasters*1 Employees of SECOM Group companies (excluding variable interest entities), as of March 31, 2022
*2 The parent company, consolidated subsidiaries and equity-method companies, as of March 31, 2022

16

SECOM REPORT 2022

Mission

The SECOMGroup’s Vision for 2030
030

Strategies for creating
the ANSHIN Platform
Enhancedvalue

Connection

ALL SECOM

Collaboration

Resolution ofsocial issues

Help achieve asociety free fromconcerns

SECOM Group Road Map 2022
Priority strategies
Expand monitoring services
Strengthen overseas operations
Reinforce BPO and ICT services
business
Improve productivity

Resolution of
ESG-related
issuesPriority materiality themes

VisionRealize the Social
System Industry

Customer-oriented services
Leveraging advanced technologies
and partnerships
Employee self-realizationand diversity
Fair corporate activities andrespect for human rights
Decarbonization anda recycling-based society

Reform ofbusinesses
through
SECOM DX

Contributing to thesuccess of the SDGs

Coexistence with local communities

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

SECOM REPORT 2022

17

The SECOM Group’s Vision for 2030

We are stepping up initiatives under the SECOM Group’s
Vision for 2030 with the aim of delivering safety and peaceof mind and making life more comfortable and convenient.
Conceptual framework of the ANSHIN Platform
Guided by the SECOM Group’s Vision for 2030, formulated in May 2017, we are working
to create the ANSHIN Platform, a service infrastructure through which we strive
to provide services that deliver seamless peace of mind for anyone and everyone
whenever and wherever necessary.
Anchored in the relationship of trust that we have cultivated with society, the ANSHIN
Platform seeks to provide peace of mind to people in their everyday lives, as well as
to society as a whole through collaboration with partners in industry, government andacademia who share our mission to help achieve a society free from concerns and who
have diverse technologies and expertise.
For both companies and individuals, the occurrence of an unanticipated crime ordisaster can interrupt daily rhythms. For companies, productivity can fall sharply.
Moreover, the greater the damage is, the longer it takes to recover. Society faces
significant risks associated with crimes, accidents, cyber crimes, natural disasters,
illnesses and aging. In addition to recognizing the importance of routine advance
preparation, we provide comprehensive services designed to address potential risks
by helping customers accurately grasp conditions, minimize impact and achieve
restoration. These four approaches, which comprise what we call the SECOM ANSHIN
Flow, enable us to provide seamless peace of mind.

18

SECOM REPORT 2022

Tha ANSHIN Platform Service Infrastructure

The SECOM ANSHIN Flow
<Value>Safety andpeace of mindIn
everydaylife

Life/health/assets/information

AI, IoT and Big Data

Advancepreparation

In
Grasp
the event of
the situation
an emergency

In
Minimizethe event ofdamagean emergency

RestoreAfteran emergency operations

Operations/emergency response services

Real-world

Cyber crimes

Risks
ks mayoccur
simultaneously
ltaneously

Natural disasters

Extensive coverage

Diverse risks

Crimes andaccidents

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>Ineverydaylife

Comfort andconvenience

Everyday concerns

Need to improve efficiency

Need to reduce costs

Need to rely on others

Issues to be addressed

Strategies for creating the ANSHIN Platform
To create the ANSHIN Platform, we are currently promoting
initiatives in line with four core strategies. The “ALL SECOM”
strategy focuses on rallying SECOM Group strengths tomaximize synergies. Through our “Collaboration” strategy
we are endeavoring to promote open innovation and create
new value by integrating the business ideas and technologies
of various partners who share our mission. Our “Connection”

strategy emphasizes leveraging Big Data analysis, whichmakes use of advanced information technologies, to respondto latent needs and strengthen our relationships withcustomers, while our “Enhanced value” strategy revolves
around addressing everyday concerns by adding greater
value to services that make life more comfortable andconvenient.

Further reinforcing
SECOM’s relationships withcustomers and society

Connection strategy

Enhanced value strategy

ALL SECOM strategy
Creation of
the ANSHIN Platform

Partners

Collaboration strategy

SECOM REPORT 2022

19

The SECOM Group’s Vision for 2030

A key milestone: A road map concluding in the fiscal year ending March 31, 2023
rising needs related to these issues, which we believe will
yield major business opportunities.
Our fundamental commitment is to promote service
innovation that helps create new value. To this end, rather
than simply providing services that will sell, we continue
working to provide services that anticipate what is needed toensure sustainability for society.

In May 2018, we introduced the SECOM Group Road Map
2022, which concludes in the fiscal year ending March 31,
2023, with the goal of clarifying initiatives to be implemented
to realize the SECOM Group’s Vision for 2030. In today’s
rapidly changing society, we have positioned responding totechnological advances and a declining labor force aspriority challenges. We will work actively to keep abreast of

SECOM Group Road Map 2022
Targets for the fiscal year ending March 31, 2023 (Japanese GAAP) (Provided for reference only)

Consolidated
revenue: ¥1.1 trillion

Consolidated
operating profit: ¥Dividend
155.0 billion ROE: 8% plus payment
ratio: 40%—45%

Investment phase
Consolidated revenue

Consolidated operating profit

High-growth phase

Consolidated revenue ¥1.1 trillion
Consolidated operating profit ¥155.0 billion

Consolidated revenue ¥970.6 billion
Consolidated operating profit ¥135.4 billionp
CAGR (oerating

profit):

3.09%

2015

2016

2017

2018

2019

2020

2021

2022

2023

(Actual)(Actual)(Actual)(Actual)(Actual)(Actual)(Actual)(Actual)(Target)(Years ended/ending March 31)

20

SECOM REPORT 2022

Technological advances have brought the expansion of
IoT services, driving greater use of drones and robots, theincreasing prevalence of unattended retail facilities andcashless transactions, and the rising popularity of smart
homes. Such changes are pushing up demand related to theneed for security in a connected society, that is, fuses
physical and cyber security. Owing to a declining labor force,
we have also seen growing demand related to the need torely on others—including from companies’ needing tooutsource noncore functions and two-income families
requiring assistance with care for children and seniors.
The spread of COVID-19 has also brought fundamental
changes related to, among others, the progress ofdigitalization and the use of ICT. Going forward, we willcontinue to promote efforts to respond to such changes byextending distinctive services that deliver safety and peaceof mind, as well as make life more comfortable andconvenient, and that help address evolving social imperatives.

Strategic investments targeting sustainable growth
Recognizing that responding to demand related to anincreasingly connected society and to the need to rely onothers will require us to change ourselves significantly—aprocess we have dubbed “SECOM-Transformation”—we aremaking bold investments in the areas of systems andhuman resources.
Investments in systems center on those aimed at
upgrading our administrative IT systems to expedite theprovision of services and significantly improve the efficiencyof administrative procedures. Having set a clear policy, we
intend to gradually introduce new systems over multiple
years. We are also investing in areas that help increase theprecision and efficiency of our operations, including AI, theIoT, and robotic process automation (RPA),* with the goal ofboosting productivity. In addition, we are responding to needs
engendered by technological advances and a declining labor
force by investing in the development of services andproducts that incorporate new technologies and in thereplacement of subscribers’ existing security equipmentwith models that are compatible with new services.
Our investments to enhance human resources
emphasize hiring and fostering people with expert
capabilities and experience, including IT specialists andindividuals with global business skills.
*RPA is a form of business process automation technology whereby softwarerobots (bots) perform tasks previously performed by humans, including
operating computers.

The final year of the SECOM Group Road Map 2022
In the final year of the SECOM Group Road Map 2022, we willcontinue to focus on four priority strategies: expand
monitoring services, strengthen overseas operations,reinforce the BPO and ICT services business, and improve
productivity.
We have begun to offer cloud-based and interactive
services that accumulate, analyze, and visualize information
detected by sensors installed at the premises of security
service subscribers. With the rapid evolution of sensing
technologies, we will step up the expansion of open innovationto accelerate the development of new services that capitalizeon the latest technologies.
Despite the uncertain economic outlook, we will press
ahead with the steady implementation of these and other key

forward-looking investments. We are confident that these
efforts will yield significant competitive advantages over the
medium to long term. We will also continue to seek beneficial
M&As and capital alliances, both of which we see as effective
options for growing our businesses. Of particular note, we will
focus on investing in companies in the fields of physicalsecurity, cyber security, BPO and ICT services, and healthcare,
as well as in start-ups with outstanding technologicalcapabilities, both in Japan and overseas.
Through these and other investments, in the final year of
the SECOM Group Road Map 2022 we will continue to increase
corporate value by expanding earnings and improving
productivity, to ensure the realization of the SECOM Group’s
Vision for 2030.

SECOM REPORT 2022

21

Sustainability

Basic Philosophy

Framework for promotion

Since our establishment, we have sought to contribute tosociety through our business activities, acknowledging theimportance of sustainability for ourselves and for society.
In November 2021, following deliberations by the Boardof Directors, we formulated the SECOM Group’s Basic
Sustainability Policy with the purpose of clarifying ourcommitment to promoting sustainable management, that is,
management that takes social imperatives, including thoserelated to the global environment and human rights, into
consideration.

We have established the Sustainability Promotion Office,under the jurisdiction of the director in charge ofsustainability, with the objective of integrating sustainability
initiatives into business strategies. The Sustainability
Promotion Office is charged with formulating sustainability
policies, disseminating information across the SECOM Group,
devising medium-to long-term greenhouse gas reduction
targets, addressing the recommendations of the Task Forceon Climate-related Financial Disclosures (TCFD) andproviding information to stakeholders. The status ofsustainability initiatives is reported to the President andRepresentative Director as appropriate and matters of highimportance are further reported to the Board of Directors.
The Sustainability Promotion Office also stages the
SECOM Group Sustainability Meeting, which is attended byenvironmental and CSR managers and staff from individual
business segments across the Group. Participants exchange
information and hold discussions to advance initiatives
related to domestic and global social imperatives, the SDGs,
and responding to TCFD recommendations.

The SECOM Group’s Basic Sustainability Policy
SECOM’s Philosophy emphasizes contributing to society through ourbusiness activities. By providing services that help ensure people’ssafety and peace of mind, we continue working to address global social
imperatives and grow together with society.
1. Provide enduring peace of mind now and in the future
We continue to provide innovative services and systems that address
potential risks, thereby ensuring seamless, enduring peace of mind now
and in the future.
2. Together with business partners
We promote environmental conservation initiatives across the entire
supply chain with the aim of helping realize decarbonization and arecycling-oriented society. We also respect human rights, recognizing theinherent dignity of all people.
3. Earn the trust of society
We strive to ensure legal compliance and manage our operations in linewith a stringent code of conduct, and to maintain sound relationships withall stakeholders by conducting our business activities in a manner that istransparent, just, and fair.
4. Our key players are our employees
Responsibility for sustainability lies with each individual SECOM Group
employee. In addition to recognizing the importance of job satisfaction
and pride in one’s work, we continue to provide training and encourageawareness to ensure the achievement of our goals.

Support for the UNGCIn May 2018, we became a signatory
to the United Nations Global Compact(UNGC) and pledged our support for
the Ten Principles of the UNGC, which
are classified into the four categoriesof “Human rights,” “Labour,”“Environment” and “Anti-corruption.”

December 1, 2021
Ichiro Ozeki
President and Representative Director,
SECOM CO., LTD.

Earning selection for inclusion in ESG investment indexes
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 five indices for Japanese equities used by Japan’s GPIF.**The five indexes used by the GPIF are the FTSE Blossom Japan Index, the FTSE Blossom Japan Sector Relative Index, the MSCI Japan ESG Select Leaders Index,
the MSCI Japan Empowering Women Index (WIN) and the S&P/JPX Carbon Efficient Index.
THE INCLUSION OF SECOM CO., LTD., IN ANY MSCI INDEX,AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICEMARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE ASPONSORSHIP, ENDORSEMENT OR PROMOTION OF SECOM
CO., LTD., BY MSCI OR ANY OF ITS AFFILIATES. THE MSCIINDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND
THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS ORSERVICE MARKS OF MSCI OR ITS AFFILIATES.

22

SECOM REPORT 2022

Materiality
SECOM’s Philosophy calls for offering services that are
beneficial for society as a whole. “The Constitutions of the
SECOM Group in Business and Management” sets forth ourcommitment to provide services and systems that deliverpeace of mind and contribute to the betterment of society. In
keeping with this fundamental commitment, we continue
striving to offer forward-looking services that anticipate
what is needed to ensure sustainable growth for society andtirelessly pursuing service innovation.
Given the increasingly more complex and intertwined
natures of social imperatives, reflecting changes in theexternal environment, individual needs regarding safety andpeace of mind are becoming greater and more diverse. With
the aim of continuing to create services and systems that

address such issues and ensuring we remain an
organization that is useful and indispensable to society, we
have identified six priority materiality themes, that is,themes of primary importance to sustainable growth, basedon a self-assessment conducted in accordance with ISO
26000, the International Organization for Standardization’s
benchmark for social responsibility, and the Global Reporting
Initiative (GRI)’s GRI Standards (global standards forsustainability reporting), and with consideration given to
feedback from stakeholders.
Our mission is to realize a society free from concerns.
With this in mind, we will incorporate the six priority
materiality themes we have identified into individual
business strategies and promote them Groupwide.

Priority Materiality Themes

Process for
Identifying Priority Materiality Themes

Mission

Extract issues

Help realize a society free from concerns

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.

Assess the materiality of each issue
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.

Customer-oriented
services
Coexistencewith local
communities
Creating
services neededby society

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 2022

23

SECOM’s Core Competitive Advantages

We continue to leverage three competitive advantages—a powerful brand, a recurring revenue–based
business model, and Group strengths—to respond to the expectations of both individual and corporate
customers, as well as to ensure sustainable growth.

A powerful brand
SECOM is a pioneer in Japan’s security services industry.
Our employees have conducted themselves with a deep
sense of their mission to deliver safety and peace of mind to
customers, helping ensure that we remain firmly rooted in
the community and underpinning our ability to provide
services that exceed subscribers’ expectations. Opinions andrequests from subscribers are conveyed to our R&D teamand play an important role in the continuous improvement
and evolution of our offerings. Our ability to resolve

customers’ apprehensions has earned us a reputation for
reliability and contributed to the rise of SECOM as a brandsynonymous with safety and peace of mind.
We currently enjoy the top share of the domestic market
for on-line security systems, with more than 2.48 million
contracts. Our reputation as the leading company in theindustry gives us an advantage in securing talented humanresources.

A recurring revenue–based business model
We are engaged primarily in recurring revenue–based
businesses, including on-line security systems, giving us ahighly stable earnings base. By valuing connections withcustomers and continuing to provide services and productsthat surpass their hopes, we endeavor to ensure long-term
relationships. We continue to invest cash generated byrecurring revenue–based businesses as needed toaccommodate new contracts, improve quality andfunctionality, further hone our competitive advantage, anddrive future growth.

Variable and Fixed Costs for On-Line Security Systems
Security equipment
is provided on arental basis(SECOM assets)

Subscriber
Variable costs

1

Dispatch SECOM
emergency
response3
personnel

Fixed
costs

SECOM
Emergency Depot(Approximately 2,700
across Japan)

2

Alert using
telecommunications
circuits

SECOM
Control Center(Major locations
across Japan)

Alert SECOM
emergency
response
personnel

Group strengths
With the aim of realizing our Social System Industry vision,as well as to boost per-customer income, we continue
working to address concerns through a business portfolio
encompassing security services, fire protection services,
medical services, insurance services, geospatial information
services, BPO and ICT services, and other services. We
continue to fortify collaboration within the Group, enabling
the creation of distinctively SECOM services, which in turn

24

SECOM REPORT 2022

boosts subscriber numbers and yields cross-selling
opportunities, thereby streamlining sales activities. Anotherbenefit of encouraging subscribers to take advantage ofother SECOM services is stronger relations with customers
and the extension of contract periods. With the goal offurther reinforcing Group strengths, we are also promoting
investments in M&As.

Maximizing Income from On-Line Security Systems

Priority issues
Technological advances

Declining labor force

An operating foundation conducive to innovation
Effective R&D
configuration

Investments
in growth

An R&D team that understands technology and the front line and a bold strategy of open
innovation to secure advanced technologies

A robust core system

A core system with the capacity to accommodate future technological developments

Highly scalable systems
and equipment

System Security AZ and AZ-Air for commercial premises and SECOM Home Security
NEO for homes can easily be linked with devices on the IoT to add additional services

A strong organization andadvanced administrative
IT systems

Tireless efforts to reduce labor requirements and enhance efficiency, includingorganizational alignments, the promotion of rigorous cost consciousness, reviewing
operations, and updating administrative IT systems.

Human resources who
are adaptable tochange and highly
motivated to contributeto society

Ability to secure individuals with specialized expertise, talented people with a strong
desire to contribute to society to whom the “safety and peace of mind” brand appeals,
training that ensures a deep understanding of SECOM’s Philosophy and the acquisitionof high operational skills, as well as improvement of the work environment andemployee treatment through dialogue with employees, and a human resources systemthat supports improvement, fair evaluation and autonomous growthGroup strengths

Problem-solving capabilities that leverage the comprehensive strengths of seven
SECOM Group businesses, service differentiation, and efficient sales activities thatmaximize cross-sales enhancements

Ability to generate
capitalStable generation of cash thanks to recurring revenue–based business model, facilitating timely andaccurate investments in systems and human resources

Evolving subscription-based services

Advanced services that leverage digitaltechnologies and respond to market needs

Emergency response services

Maximization

Increase in productivity
Per-customer
incomeNumber ofcustomers

Continuationof contracts

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

Whether at head office oron the front lines

Continuous expansion of income
Reinvestment in growth
Improvement of capital efficiency

SECOM REPORT 2022

25

SPECIAL FEATURE
Capitalizing on Comprehensive Strengths to Expand Future Potential

Ensuring Safety and Peace of Mind
at Airports
We have helped enhance the efficiency of security services at airports, which has
conventionally centered on security guards, by leveraging innovative technologies.
Going forward, we will build on know-how accumulated in this area to provide
comprehensive security for large-scale facilities.
Background:

The privatization andrationalization of airport
operations across Japan

26

SECOM REPORT 2022

Recent years have seen the privatization and rationalization of airport operations in allparts of Japan. This has improved overall service quality by, among others, reducing
landing fees and enhancing the administration of passenger terminals. In addition to
making Japanese airports the choice of domestic and foreign carriers, this is expected
to positively impact local economies, including by boosting tourism.

Comprehensive capabilities lead to orders forsecurity services at major international airports

A monitoring configuration that delivers
uninterrupted SECOM-standard security

As part of an effort to streamline management, in 2020
Kansai International Airport and Osaka International Airport(Itami) placed an order with SECOM for security services—amove aimed at overhauling airport security—which we beganproviding in 2021. We earned high marks on three particular
fronts: our solid track record in the provision of static guard
services at the international passenger terminals of the
Narita International Airport and Tokyo International Airport(Haneda), as well as airport surface management andaircraft parking bay management at four other domestic
airports; our capability-based planning, which centered onmechanized security services as a strategy to guarantee
both safety and productivity; and our proposal for acomprehensive solution underpinned by experience andknow-how in the provision of airport security.

Around-the-clock security at both Kansai International
Airport and Osaka International Airport is managed froma single central SECOM control desk located at the former,
a configuration that facilitates careful monitoring that
capitalizes on our know-how in on-line security systems,
providing seamless safety and peace of mind. At both
airports, we take responsibility for managing all aspectsof security in line with our airport security plan, including
providing training and direction to partner security services
companies, creating a single cohesive team.

Leveraging innovative technologies to achieve
superior security and a 30% reduction in labor
requirements
Conventional airport security depends heavily on skilled
security guards. Accordingly, securing human resources
has always been a challenge. Anticipating further declines
in Japan’s working population going forward, we sought tocreate a security configuration at both airports to enhance
the quality and efficiency of security. This involved
reassessing requisite security levels in different areasand introducing innovative technologies. Our revised
configuration reduces labor requirements by 30%, achieving
superior safety while also improving productivity.

Deployment of security robots
decreases patrols by human guards
Autonomous patrolling robot Secom Robot
X2 was deployed at Terminal 2 of KansaiInternational Airport and on the concourse
outside the ticket gates at the railway
station connected to the airport. This madeit possible to monitor images captured bybuilt-in cameras and inspect unattended
items remotely, which helped rationalize
security patrols.

Building on know-how in airport security
Based on our experience providing security at these two
airports, we established proprietary standards for effective,
integrated airport safety and security. In July 2022, security
services company Senon Ltd., which specializes in static
guard services for large-scale commercial facilities, among
others, and also provides airport security services at 35
airports across Japan, joined the SECOM Group. In addition
to reinforcing the sales channel between us and airports,
this acquisition brings together Senon’s strengths as asecurity services company and our technologicalcapabilities, positioning us better to provide high-grade,highly efficient security services.
Looking ahead, we will continue to promote our own
unique capabilities in the area of security services for
airports with the aim of securing new orders from airports
in Japan and overseas. At the same time, we will further
leverage know-how accumulated in this area, channeling
our ability to provide comprehensive security for large-scale
facilities that combines human skills and mechanization tofurther expand the scope of our operations.

Mounting of cameras on patrol
vehicles lowers requirements forpatrol vehicle personnel

Installation of new automatic vehicle
gate system shortens vehicle
confirmation

High-precision cameras were mounted on
security patrol vehicles, enabling real-time,
360-degree monitoring and recording.
As a result, patrol vehicle personnel
requirements were halved.

An automatic license plate authentication
system was installed at gates controllingthe entry and exit of vehicles into the
airports. This reduced the need to post
guards at these gates and dramaticallylowered the average per-vehicle inspection
time, previously three minutes, to a mere
10 seconds.

SECOM REPORT 2022

27

SECOM Today

Security Services(In billions of yen)

564.4

566.7

558.1

Net sales andoperating revenue

106.9
2020

101.1
2021

113.4
Operating income
2022

Business summary
A distinguishing feature of our security services business isthat it primarily consists of recurring revenue–based
services, that is, services based on long-term contracts. The
initial contract period for mainstay on-line security systems,
for example, is five years, after which the contract isrenewed automatically every year. Our provision of on-line
security systems includes the installation of sensors andother monitoring equipment and around-the-clockmonitoring by staff at a SECOM control center via
telecommunications circuits. In the event an intruder, fire orother irregularity is detected, control center staff dispatch
emergency response personnel from the nearest SECOM
emergency depot and, if necessary, notify the police and/or
fire department. The fact that we take full responsibility for
all aspects of our on-line security systems, from R&D
through to equipment manufacturing, security planning,

On-line Security Systems

installation, around-the-clock monitoring, emergency
response services and equipment maintenance, guarantees
exceptional quality and reliability. Because we maintainownership of security equipment and extend it tosubscribers on a rental basis, we take full responsibility for
maintenance.
Our half-century of providing community-focusedservices underpins our ability to promptly ascertain
customers’ wishes
and offer the
optimum solutions
to their needs forsafety and peace ofmind. At present,
contracts for our
on-line commercial
and home security
SECOM Control Center

Confirm security status/adjust system settings

Contracts for On-line
Security Systems in Japan(As of March 31, 2022)

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

Home

Flashing light

Commercial

SECOM sticker

Light 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.

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

Subscriber

Police Dept.

SECOM
3 Dispatch
emergency responseusing
1 Alerttelecommunications
circuits

personnel

SECOM
Emergency
Depot

2

Alert SECOM
emergency
response personnel

SECOM
Control
CenterFire Dept.
Gas
Company

Alert emergency
services asnecessaryService industries

6.9%

Financial services

6.2%

Retailing/wholesaling

3.4%

Manufacturing

3.1%

Government agencies

3.0%

Other

16.8%

Residences (excluding
condominiums and apartments) 37.8%
Condominiums and apartments 22.8%

28

SECOM REPORT 2022

systems in Japan number more than 2.48 million, and wecontinue to enjoy the leading share of the domestic market.
We continue to leverage our accumulated experience andexpertise to ensure the stable delivery of high-grade on-line
security systems by reinforcing the three components of ouroperating foundation, namely, technological prowess, humanresources, and operational and control structure.
Technological prowess
The SECOM Intelligent Systems Laboratory conducts
research into new and core technologies, while the SECOM
Development Center capitalizes on these technologies todevelop highly reliable security systems. In addition tokeeping abreast of social imperatives and trends in criminal
activity, our R&D team guarantees that the invaluable
opinions and needs of subscribers communicated to oursales staff, emergency response personnel and other
employees in the course of their work are reflected in swift
and precise adjustments that further bolster the quality of
our on-line security systems.
Given the remarkable pace of technological evolution inrecent years, we are actively promoting open innovation tofacilitate the prompt application of the latest technologies toservices. Through collaboration with partners ranging frommajor companies to start-ups, we continue to think outside
the box to realize new services that recognize diverse
values.
Human resources
Training for new recruits, as well as for emergency response
personnel, sales staff, administrative staff and other
employees, is provided at four training centers in Japan. This
ensures that employees fully understand our corporate
philosophy and observe a code of conduct befitting security
professionals, as well as equips them with advanced
knowledge and technical skills. We recognize that ouremployees are our most valuable management resource
and are essential to building a robust organization thatbuttresses our ability to extend high-grade services.
Operational and control structure
We have established an incomparable operational and control
structure for offering on-line security systems through anationwide network. Our industry-leading network ofapproximately 2,700 emergency depots, the unerring
decision making and precise instructions of our highly
experienced control center staff, and the prompt actions of
our emergency response personnel ensure our ability toprovide swift, appropriate services.

Operating highlights
Commercial security services
We work actively to deliver an extensive lineup ofcommercial security services, centered on on-line security
systems. In recent years, such systems must not only offer
monitoring for irregularities to guarantee security andprevent fires, but also support the business activities ofsubscribers around the clock. In addition to boosting
contract volume, we continue to focus on quality, that is, onenhancing customer satisfaction by providing a variety ofhigh-value-added services that respond swiftly and flexibly
to the needs of subscribers.
The increasingly convenient System Security AZ
System Security AZ is an all-in-one on-line security systemthat helps manage risks by preventing crime and fires, aswell as improves work efficiency by facilitating themanagement of employee attendance, among others. Thissystem enables users to confirm security status and adjust
system settings remotely from a smartphone using a
dedicated app, earning high marks for convenience and easeof operation. AZ can also be integrated with the SECOM
Cloud Video Surveillance service, enabling users to manage
images captured using the system’s IP cameras in the cloudand confirm high-resolution live images and images
recorded when the system is armed or disarmed, or when
the sensor detects an irregularity, from a smartphone.
A prompt function to prevent users from forgetting to set
the system, and a notification function to confirm security
status at the time the system is set were recently added to
AZ, thereby reinforcing the effectiveness of protection.
Facility control is also now possible thanks to AZ’s dedicatedsmartphone app, allowing users to, for example, remotely
operate electric locks, automatic doors and light fixturesconnected to the system. We will also continue to improve
the safety and convenience of AZ and take advantage of its
expandability to develop and extend value-added services
that benefit the operations of subscribers.

System Security AZ

Sensor featuring advanced
sensing technologies

SECOM REPORT 2022

29

SECOM Today: Security Services

The launch of System Security AZ-Air for small andmedium-sized commercial facilities and offices
In July 2022, SECOM launched System Security AZ-Air, asecurity system optimized for small and medium-sizedcommercial facilities and offices. This system features adownsized controller that can be connected wirelessly to awide range of sensors, simplifying installation in offices withcomplex wiring, as well as in shops and restaurants where
aesthetics are an important consideration. Looking ahead,
we will actively propose this new system, which like System
Security AZ, AZ-Air enables users to check security status
and operate the system from a smartphone, thereby
ensuring excellent safety and functionality.
The mechanization of static guard services: Responding to
a declining labor force
With Japan’s workingage population
shrinking, securing asufficient labor force
is an urgent challenge
for the security
services industry. In
the area of static
guard services, it isalso important to
reduce the physicalReceptionist duties performed bydemands on individual
the AI-powered Virtual Keibi System
guards and improve
work environments. Amid concern that the ramifications of
this situation, notably difficulties in securing humanresources and spiraling labor costs, will drive up prices forstatic guard services, we are working to create new services
that leverage cutting-edge technologies.
In January 2022, we commenced sales of the AI-powered
Virtual Keibi System. This system features a life-sized virtual
character that appears on a large stationary mirror display
and performs security, receptionist and other duties, while
human guards as usual focus on emergency responses andother duties that require their expertise and experience. Using
the Virtual Keibi System to fulfill certain static guard service
responsibilities thus helps reinforce security while at thesame time increasing staffing efficiency and reducing costs.
Security robot cocobo, also launched in January 2022,
makes use of AI and 5G technologies to autonomously patrol
commercial facilities in place of security guards. Using AI
technology, cocobo analyzes video captured by its on-board
camera in real time, automatically notifying the facility’s

30

SECOM REPORT 2022

disaster prevention
center if it detects
unattended items
along its route. The
robot also makes useof a diverse range ofdata in the cloud—including Virtual
Keibi System andsurveillance camera
cocobo a security robot
images and data on
elevator and electric door lock status, as well as on thefacility itself and its location—and liaises with human guards,
ensuring highly effective security. Cocobo has already been
introduced at airports and large-scale urban complexes,
working together with human guards to enhance service
productivity and help lower security costs for customers.
Participation in the creation of an infrastructure for drones
for multiple purposes
Drones are expected to find use in fields requiring level 4
operation, that is, beyond-line-of-sight flight over urban andother populated areas. As an operator of private sector–use
security drones, in October 2021 we participated in a
successful urban-area level 4 demonstration test in Hyogo
Prefecture of drones for four different purposes:
pharmaceuticals transport, security patrol, smokestackinspection and aerial sports photography. In the years ahead,
we will continue to promote the realization of an effective
control infrastructure for fully autonomous drone flight.

Home security services
In addition to a compact desktop home controller, SECOM
Home Security NEO can be armed and disarmed remotelyfrom a smartphone, includes an automatic notification
feature that allows a subscriber to receive alerts on his or
her smartphone when the system is accessed by someone
leaving or entering the home, and can be linked with deviceson the IoT to facilitatea variety of services.
Such featurescontinue to reinforce
the popularity of thissystem, subscriptions
for which have risen
steadily since its
launch in 2017.
SECOM Home Security NEO

Cloud-based smartphone app underpins the popularity of
SECOM Monitoring Service for Seniors
With needs for services to protect
seniors escalating in Japan’s superaged society, in June 2021 westarted providing SECOM Monitoring
Service for Seniors as an optional
SECOM Home Security service that
benefits both seniors and theirfamilies. This service stores andanalyzes information from SECOM
Home Security sensors installed in
the entryways, windows and roomsof seniors’ homes in the cloud,making it possible for family
members to access this information
SECOM Monitoring Service
using a dedicated smartphone app
for Seniors smartphone app
to confirm any variations in daily
rhythms and activity levels (i.e., how many times the sensor
detects movement). Family members living apart can thus
keep an eye on their parents in an unobtrusive manner. Ifthey are concerned about their parents’ wellbeing, they canalso use the app to request the dispatch of SECOM
emergency response personnel for an in-person check.
For parents requiring closer observation, we are
currently developing sensors that detect changes in posture
due to, for example, falls and track breathing during sleep inreal time. We are conducting verification tests of thesesensors at a SECOM-operated nursing home, where they arebeing used to help monitor residents by extending andanalyzing crucial information that facilitates prompt
response and appropriate care, and look forward toachieving commercialization in the near future.
New app for Apple Watch and iPhone
With the aim of improving the user experiences of SECOM
Home Security subscribers, in February 2022 we beganoffering SECOM Cantabile,
an app for Apple Watch andiPhone. SECOM Cantabilealerts subscribers to arm or
disarm their home security
system when they are acertain distance away, which
they can do simply bytapping the app on theirApple Watch. The new app also stores Apple Watch healthdata, such as calories expended, steps taken, sleep time andblood oxygen level, to create a “health report” that thesubscriber can use in everyday health management. We willcontinue working to expand services that link SECOM Home
Security with Apple Watch.

Other security services
Two new fully automatic AEDs introduced in Japan
We began offering the SECOM AED Package Service in 2004,
becoming the first in Japan to extend automated external
defibrillators (AEDs) on a rental basis. Deployment of our
AEDs has risen rapidly in the years since. As of March 31,
2022, the number of lives saved using our AEDs had reachedan estimated 3,000. In December 2021, we introduced
AED 360P, a fully automatic unit that analyzes the patient’s
heart rhythm and automatically delivers an electric shock
if necessary, rather than requiring the rescuer to push theshock button. In February 2022, we launched AED 3250, afully automatic AED that can be managed online, meaningthat unit malfunctions, electrode pad expiration dates, battery
levels and other aspects of operational status, are monitored
online and data transmitted automatically to a server. We
will continue working to expand our lineup of AEDs with theaim of broadening installation and increasing lives saved byensuring these lifesaving kits are available to anyone andeveryone whenever and wherever they are needed.

Fully automatic AED 360P

Setting SECOM Cantabile

SECOM REPORT 2022

31

SECOM Today: Security Services

COCO-SECOM: Linking with a new smartphone appenhances convenience
Since its release in 2001, COCO-SECOM—Japan’s firstfull-scale location information system—has been used
for a broad range of purposes, including to confirm thewhereabouts of employees working outside the office andthe location of valuables, prevent vehicle theft, find missing
children and seniors, and to send alerts in the event of an
emergency. In March 2021, we revamped COCO-SECOM’s
dedicated portable transmitters and linked the system
to a newly developed smartphone app. The app notifies
a designated smartphone when an individual carrying atransmitter leaves home, or enters or exits a specific area,or when a vehicle fitted with an onboard transmitter moves
unexpectedly, greatly enhancing convenience. Looking
ahead, we will continue to capitalize on responsivenesscultivated over more than two decades of providing COCOSECOM to ensure reliable safety and peace of mind byhelping customers address challenges ranging fromresolving issues affecting their businesses to keeping watch
over individuals.

Overseas security services
Services provided in 13 countries and territories
We made our overseas debut in 1978, when we establisheda presence in Taiwan. Today, our overseas security services
business encompasses operations in 13 countries andterritories, through which we extend diverse services andproducts, notably on-line security systems with emergency
response services, customized to reflect local market needs.
Publicly listed Taiwan Secom, the largest security
services company in the Taiwanese market, offers a broad
lineup of security services and products, ranging from home
security to safety management systems for large-scale
facilities. The company is working actively to incorporate
new technologies, including introducing security that uses
wearable cameras and developing smartphone apps, withthe aim of improving services.
Our operations in the ROK are spearheaded by S1, whichis also publicly listed and the leading company in the local
security services market, and include the provision of a wide
variety of security services and building solutions, centeredon on-line security systems. S1 continues to garner praisefrom customers for its swift emergency response services,which it extends through approximately 740 emergency
depots, underscoring growth in subscriber numbers.
We have created an extensive security services networkin the People’s Republic of China (PRC) encompassing basesin 24 coastal and inland cities, through which we areworking to further expand sales. We have also set up a
manufacturing facility in Shanghai that produces security
equipment tailored to local market needs.
In Southeast Asia, SECOM Group companies in Thailand,
Malaysia, Singapore, Indonesia, Vietnam and Myanmar focus
on offering on-line security systems, local acceptance of
which continues to grow.

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

COCO-SECOM
Operations
CenterRequest forsearchPositioning
information

SECOM
Emergency
Depot

Subscriber
Subscribers can initiate
searches using the Internet
or a smartphone applicationor can call SECOM to makea search request.

SECOM REPORT 2022

Policedepartment,
emergency
services

COCO-SECOM Transmitter
Device (vehicle-mounted)

COCO-SECOM Transmitter
Device (portable)

32

Notification of police(if warranted)

COCO-SECOM transmitter
Dispatch emergency
response personnel(if requested)We also offer a diverse array of security services in
Turkey, including safety management systems, forcustomers ranging from small and medium-sizedcompanies to large-scale facilities. In 2021, we opened an
R&D facility in the country that is developing systems thatmake broad use of IT.
Having set forth a policy of being the leading provider ofpremium security services tailored to advanced needs inAustralia, we provide high-grade services, including largescale systems integration, to customers across the
spectrum, from prominent financial institutions and largecommercial facilities to government agencies. In New
Zealand, we extend security services, as well as
maintenance and inspection services. Our high-performance
surveillance camera systems enjoy particularly solid
support from customers ranging from major supermarkets
to financial institutions.
Subsidiary Secom plc delivers high-grade on-line
security systems and other security services across theUnited Kingdom. The company has built a robust reputation,
earning the trust of government agencies, as well as leading
financial institutions and major corporations.
Efforts to expand operations in growing markets
With Japan’s population expected to continue shrinking, we
recognize that strengthening our operations in promisingoverseas markets is essential to ensuring sustainablegrowth going forward. We are working to accelerate theproliferation of on-line security systems—particularly in
Asia, which is home to rapidly growing wealthy and middle
classes—by creating services that better reflect regional
characteristics, as well as local market needs andsensibilities. We are also enhancing service quality by

Security guard(PT. Secom Indonesia)

actively hiring and enhancing training for local staff, as well
as stepping up marketing to raise awareness of the SECOM
brand. Through these and other efforts, we will strive toincrease the percentage of consolidated net sales andoperating revenue accounted for by overseas security
services to more than 10%.
At our China Innovation Center and the ASEAN Innovation
Center, located in Shanghai and Bangkok, respectively, weare striving to devise systems that respond to market needs
by incorporating advanced technologies, as well as to foster
highly skilled engineers. We are also advancing thedevelopment of a highly convenient security system that
employs smartphones, as well as a platform for thedigitization of security services that is scheduled to belaunched in the PRC and in Southeast Asia.
In Thailand, we recently introduced a highly scalable
cloud-based on-line security system for small and mediumsized commercial customers, as well as for homes. We also
simultaneously released television, web and outdoor
advertisements, all of which have been met with a highly
positive response. Looking ahead, we plan to deploy
business management know-how accumulated in Thailand
in other countries and territories.
To expedite the expansion of our overseas operations, wehave established a new business development team that is
tasked with taking the initiative in exploring businessalliances and M&A proposals. By further popularizing ourdistinctively SECOM security services in the countries andterritories in which we operate, and by capitalizing on
opportunities in new geographic and business areas, we will
also seek to establish ANSHIN as a universally recognizedterm synonymous with peace of mind.

Control center(Secom (Malaysia) Sdn. Bhd.)

SECOM REPORT 2022

33

SECOM Today: Fire Protection Services

Fire Protection Services(In billions of yen)

155.9

152.1

143.9

17.8
2020

Net sales andoperating revenue

13.1
2021

14.5
Operating income
2022

Operating highlights
This segment centers on the operations of Nohmi Bosai andNittan, which offer comprehensive, high-grade fire protection
systems encompassing the provision of automatic fire
alarms and fire extinguishing systems, as well as equipment
inspection and maintenance services. The two companies,
leaders in Japan’s fire protection services market, boast
competitive advantages derived from a wealth of experienceand know-how, and have established an integrated service
configuration encompassing everything from R&D to system
planning, manufacturing, installation and maintenance,
allowing them to extend services tailored to customer needs
for a wide range of applications, including office buildings,
production facilities, tunnels, cultural properties, ships
and homes.
In the area of automatic fire alarms, Nohmi Bosai andNittan strive to secure orders for new buildings and are
responding to replacement demand in the renovations
market by drawing on their solid track record and the trustof customers. In fire extinguishing systems, the companies’
efforts focus on responding to customer needs by drawing
on far-reaching know-how, technical prowess andinstallation capabilities to offer an ambitious lineup of
systems tailored to the unique risks and circumstances
faced by subscribers.

Test of fire extinguishing system (Nohmi Bosai)

34

SECOM REPORT 2022

Efforts to expand operations by developing and extending
new services
Nohmi Bosai is working to achieve sustainable growth not
only by strengthening its core businesses, notably thedelivery of fire protection systems, and inspection andmaintenance services, that comply with Japan’s Fire
Services Act, but also by broadening the scope of its
operations as a provider of integrated fire protection
solutions that address a diverse range of disasters.
Drawing on lessons learned from a spate of unforeseenfires and other disasters, companies have taken steps inrecent years to strengthen the effectiveness of their BCPs.
In May 2022, Nohmi Bosai reinforced the various functionsof its TASKis (“task information system”) cloud-based
disaster response support software, which assists in theprovision of emergency responses in the event of a fire,
earthquake or other disaster. The system is now alsoable to receive signals when disaster situations, including
earthquakes, floods and the failure of key equipment at
production facilities, are detected. This allows the integrated
observation of monitoring equipment installed in multiplesite buildings, as well as the sending of simultaneous
notifications to the preregistered smartphones of pertinent
individuals if an irregularity is detected, thereby reducing theburden on fire prevention and safety officers.
Going forward, Nohmi Bosai will continue to develop newservices that facilitate optimal fire prevention solutions, aswell as to enter new areas with the goal of addressing thechallenges faced by customers in all facets of fire detection
and prevention.
Launch of rentals of Immersive Fire Experience VR: Panicin the Office
To enhance the benefits of fire drills, it is important toensure that participants correctly understand the danger
and frightening nature of fires. In response to the needs ofcompanies looking to conduct more effective fire drills, in
September 2021 Nohmi Bosai launched Immersive Fire
Experience VR: Panic in the Office. This virtual reality training
program uses flames and smoke to convey peril and fear, as
well as realistic movement and sound to communicate theconfusion that can be experienced by people caught up in afire. In addition to instilling a firm grasp of how hazardous afire can be and the importance of acting without hesitation
when a fire alarm sounds, this program seeks to increase
people’s motivation to hone their fire prevention know-how
and skills, as well as to encourage their active participationin drills.

Immersive Fire Experience: VR: Panic in the Office(Nohmi Bosai)

Consistently robust sales of B Catch Now
Nittan continues to receive brisk orders for the B Catch Now
indoor location information system, which was launched in
April 2020. This system uses signals from sensor beacons
installed inside a fire detector to pinpoint the location ofpeople even indoors where Global Positioning System (GPS)signals cannot reach. In the event of a fire, a push
notification is sent simultaneously to registered users’smartphones, thereby assisting initial responses, including
efforts to extinguish flames and evacuate people. On an

everyday basis, the system can be used to locate people
working in non-territorial offices and check the use ofconference spaces. In medical and long-term care facilities,
sensor beacons are attached to equipment and fixtures toprevent misplacement, optimizing management anddeployment. Customers can also use the system to collectand analyze workplace flow lines and working time, helping
to optimize personnel management and the placement ofpeople and equipment. Anticipating demand for use inlocating seniors and other vulnerable individuals, Nittan will
strive to provide card-based, tag-based and other systems
that do not require smartphones.
Firm orders for fire protection systems for renewableenergy–related facilities in Vietnam
Nittan has established bases in the United Kingdom, Sweden
and Vietnam, and continues to actively expand its overseas
presence. The company’s fire alarm systems, in particular,
have garnered praise outside Japan for ease of use andreliability, a reputation that, combined with the skill of
Nittan’s installers, continues to bolster adoption.
In Vietnam, investment in the construction of renewableenergy–related facilities is expanding amid an urgent needto address climate change. Nittan has received a series oforders for fire alarm systems for wind and solar power
generation facilities that comply with standards establishedby UL LLC for such facilities in North America. Nittan willcontinue to actively promote sales efforts that respond to
the needs of customers in this robust market.

Wind power facility with Nittan fire alarm system
in Vietnam’s Ninh Thuâ.n province (Nittan)
B Catch Now display of location information (left) andmovement data (right) (Nittan)

SECOM REPORT 2022

35

SECOM Today: Medical Services

Medical Services(In billions of yen)

187.3

196.1

182.8

Net sales andoperating revenue

13.6
6.2
2020

3.9
2021

Operating income
2022

Operating highlights
In the belief that providing services that protect health andlife is the ultimate expression of our commitment todelivering safety and peace of mind, we have created a
medical services business that focuses on customers who
feel anxious about their health. This business encompasses
four categories: medical care, personal care, healthcare andpreventative care, and ICT-based medical services. We also
continue to leverage ICT to create seamless, integrated
community-based healthcare models encompassing support
for affiliated medical institutions and the extension of avariety of services, home nursing, pharmaceuticaldispensing, personal care, and health and preventative care.
Medical care services
Our medical care services business began in 1991 with thelaunch of home nursing services and pharmaceuticaldispensing services, both of which are available to patientsin the comfort of their own homes. Today, we assist in theprovision of home medical care by dispatching visiting

nurses from a nationwide network of 32 visiting nurse
stations to offer expert medical treatment and nursing carein the patient’s home under the direction of his or her
physician. We have also begun to dispatch physicaltherapists to extend home-based rehabilitation services. Our
pharmaceuticals dispensing services include fillingprescriptions at SECOM Pharmacy, as well as delivering
medications, medical supplies, such as infusion pumps, andinfusion lines and syringes for home parenteral nutrition(HPN), administered via central venous catheter, and medical
hygiene products needed by patients at home.
Our support for affiliated medical institutions centers on
20 partner hospitals and clinics in Japan extending highlevel acute care, convalescent rehabilitation and long-termcare. In addition, we sell and rent medical equipment andstrive to help reduce costs and improve the efficiency ofaffiliated medical institutions through joint purchasing andmanagement of pharmaceuticals. We also leverage ourbroad know-how in home medical care to assist with the
opening and operation of community clinics. We also operateHome Medical Services
Medical Care Institution

Prescription

Physician’s guidelines
Nurse’s report

Coordination
Home Nursing
Services

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

Consultation
Prescription
Pharmaceutical delivery

36

SECOM REPORT 2022

Patient

Nurse visit
Outpatient care

Sakra World Hospital in Bengaluru, India, a general hospitalwith approximately 300 beds boasting a sophisticatedmedical care system and a highly skilled staff offering highly
attentive, advanced care, which continues to see stable
growth.
Personal care services
This category includes the operation of residences forseniors that bring together our expertise in security services
and our know-how in the provision of medical and personalcare. We also extend a variety of other services, including
visiting personal care and adult day care.
Health and preventative care services
Maintaining and improving health, and enhancing quality oflife, are crucial in protecting against illness and the need for
personal care. Accordingly, we offer tailored healthmanagement services through, among others, telephonebased health consultations and the operation ofmembership-based club SECOM Health Care Club KENKO.
ICT-based medical services
These services center on the deployment of unique
networked services for medical institutions. Against a
shortage of diagnostic radiographers in Japan, the Hospi-net
remote image diagnosis support service is helping improve
the quality of medical care. We also offer services that makeuse of our secure information network to assist in theextension of high-grade medical services, including cloudbased medical report services SECOM Ubiquitous Electronic
Medical Record (EMR) and SECOM OWEL, and SECOM
LINKus, which makes it possible for information entered into

electric medical records tobe stored at a SECOM data
center and shared among
healthcare professionals.
Capitalizing on our
accumulated expertise inhome medical care and in
the provision of support to
Screen displaying
affiliated medical
SECOM Ubiquitous EMR
institutions, as well as our
extensive, distinctive management resources, we offer the
SECOM Vitalook remote medical support platform. SECOM
Vitalook collects and stores home medical care patients’ vital
sign data (e.g., pulse, blood pressure, body temperature andelectrocardiogram results) at a SECOM data center, enabling
physicians and nurses at contracted medical institutions toreview such data in real time and issue appropriate
instructions remotely. The urgent need to address COVID-19
and the acceleration of DX are giving rise to new medical
needs. In response, we are accelerating development aimed
at facilitating the effective deployment of SECOM Vitalookin hospitals.
We are also working to support sound hospitalmanagement by offering SECOM SMASH, a hospitalmanagement information analysis system that helps makerelated processes more visible. Looking ahead, we willcontinue to capitalize on ICT-based medical services that
support medical care and personal care in a super-agedsociety with a view to increasing the provision of suchservices, crucial to safety and peace of mind, in markets
around the world.

SECOM

Remote monitoring ofpatient’s condition
by healthcare professionals

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

SECOM
data centerCollection and storage of vital sign data

Patient’s
deviceAutomatic alerts
Video calls
Display of pertinent data

Contracted
hospitals

Relatedorganization

Sharing of information with related organizations

SECOM REPORT 2022

37

SECOM Today: Insurance Services

Insurance Services(In billions of yen)

61.4

54.9

46.9

Net sales andoperating revenue
9.3

8.5

-4.3
2020

Operating income
2021

2022

Operating highlights
Recognizing that our ability to deliver true safety and peaceof mind depends on not only providing security services,which are preventative by nature, but also on looking after
people should misfortune strike, we offer a diverse array of
insurance policies. Secom General Insurance leverages theresources of the SECOM Group to develop and extend adiverse range of distinctive non-life insurance policies. Given
the increasing frequency of natural disasters in recent years,
Secom General Insurance is working to improve theprofitability of its fire insurance policies by ensuring
appropriate control of natural disaster–related risks. The
company is also reviewing its product portfolio with the aimof, among others, reinforcing sales of MEDCOM, anunrestricted cancer treatment policy, and of automotive
insurance.
A unique cancer treatment policy developed from theperspective of the subscriber
MEDCOM is a pioneering indemnity-based cancer treatment
policy developed in response to contemporary needs. In
addition to unlimited coverage for all inpatient hospitaltreatment, including that covered under Japan’s National
Health Insurance (NHI) scheme, as well as advanced medicalcare and care for which the individual usually bears thefinancial burden, MEDCOM also covers outpatient treatment
up to ¥10 million per five-year period. This allows thesubscriber to concentrate on treatment without having toworry about the economic implications thereof, underpinning
the steady expansion of subscriptions.
SECOM Anshin My Car: Backed by on-site support fromemergency response personnel
SECOM Anshin My Car is an automotive insurance policy that
includes around-the-clock access to on-site support fromSECOM emergency response personnel in the event of an

38

SECOM REPORT 2022

accident if requested. This policy’s customer-focused
assistance, which also includes emergency response
personnel contacting the police and ambulance, confirming
the seriousness of the accident and photographing the site,
continues to earn high marks from customers.
Fire insurance policies with discounts for subscribers who
have installed security systems
Residential fire insurance policy SECOM Anshin My Homefeatures a discount on premiums for subscribers who haveinstalled an on-line home security system in recognition of
the fact that such systems reduce the risk of theft and fire.
The Security Discount Fire Policy for commercial premises,
including offices and retail facilities, which offers premium
discounts of up to 30% to subscribers who have installed acommercial on-line security system, reflecting the riskmitigating benefits of such systems, has earned high marks
for its enhanced coverage. Active efforts to propose fire
insurance when introducing on-line security systems topotential home and commercial security services customers
have bolstered appreciation for our unique policies, which
capitalize on Group strengths.

Manga pamphlet for MEDCOM

SECOM Today: Geospatial Information Services

Geospatial Information Services(In billions of yen)

56.6

54.1

53.7

3.0

Net sales andoperating revenue

4.4

3.9
Operating income

2020

2021

2022

Operating highlights
Subsidiary Pasco Corporation collects geospatial data fromcommercial satellites, aircraft, drones and proprietary
vehicle- and ship-mounted sensors, among others, which it
integrates, processes and analyzes to provide a variety ofgeospatial information services. Pasco’s operations are
divided into services for public sector entities in Japan,
which account for approximately 80% of segment net sales
and operating revenue; services for domestic private sector
customers; and support services for developing countries
overseas. With the aim of enhancing national resilience andrealizing smart cities, Pasco is promoting the establishmentof real-time digital representations of physical assets in
virtual space using data captured by sensors and advanced
digital twin technology.
Drone-based automated public infrastructure patrol
monitoring
Accelerating efforts to leverage DX to improve efficiency andreduce labor requirements are crucial to ensuring themaintenance of public infrastructure and preventing its
degradation. In recent demonstration tests conducted withSECOM, developer of the SECOM Drone autonomous flying
surveillance robot, Pasco confirmed that the drone could be
used for inspections and monitoring even in locations thatare inaccessible to people. Pasco will continue to conduct
demonstration tests using drones with the aim of realizing
automated drone-based public infrastructure patrol
monitoring services.

development. In response to river flooding caused byfrequent torrential rainstorms, Pasco recently introduced
TDOT 3 GREEN (shown above), a drone-mountable green
light detection and ranging (LiDAR) system that allows thesimultaneous high-precision measurement of 3D
topographical data in water and on land, thereby enhancing
the efficiency of surveying and leveraging DX in the
management of infrastructure.
In response to issues pertaining to an aging
infrastructure and national resilience, Pasco developed andoperates the Real Dimension vehicle-mounted 3D roadcondition surveying system. The system measures 3D
coordinate data and road surface properties, helping
improve the efficiency and accuracy of efforts to maintain
important road infrastructure.
Recent years have also intensified needs related to waterarea surveying to gather topographical data for sea, riverand lake beds, essential to the maintenance of offshore wind
power generating facilities, as well as for dams and harbors.
To reinforce its water area measurement capabilities, Pasco
recently introduced a state-of-the-art multibeam sonar
system that facilitates the 3D measurement of underwater
topography up to a depth of 450 meters. Going forward,
Pasco will continue working to deploy new geospatial
information processing technologies in a wide range ofareas, from changing cities and topography to ocean floors,with the aim of helping address key social imperatives.

The challenge of deploying new geospatial information
processing technologies
In recent years, the collection and analysis of a wide range of
3D geospatial information using the latest technologies isincreasingly important to addressing social imperatives
related to natural disasters, energy issues and urban

Real Dimension vehicle-mounted 3D road condition
surveying system

SECOM REPORT 2022

39

SECOM Today: BPO and ICT Services

BPO and ICT Services(In billions of yen)

124.8

121.9

113.2

Net sales andoperating revenue

11.5

14.5

14.6
Operating income

2020

2021

2022

Operating highlights
This segment encompasses the operations of subsidiaries
Secom Trust Systems, which develops and provides ICT
services that deliver safety and peace of mind, as well as
make life more comfortable and convenient; At Tokyo, which
operates data centers that boast tailored business support
capabilities, outstanding reliability and connectivity; andTMJ, which extends high-grade contact center, back-officesupport and other BPO services. All three companies
endeavor to respond to the diverse needs of customers.
Large-scale disaster preparedness, information security
and cloud-based services
In addition to overseeing the development and operation of
IT systems for SECOM Group companies, Secom Trust
Systems leverages its ICT expertise, superior security androbust Secure Data Center to offer a variety of large-scaledisaster preparedness, information security and cloudbased services.
Large-scale disaster preparedness services include
assisting customers in the formulation of BCPs to ensureadvance preparations, the implementation of effective
immediate response measures and the prompt restart ofoperations in the aftermath of a major disaster. The SECOM
Safety Confirmation Service enables subscribers to swiftly
ascertain the safety of employees and their families anddamage to sites in the event of a major earthquake or otherdisaster or the failure of key infrastructure. As of March 31,
2022, this service was used by approximately 8,600
companies employing around 7.9 million individuals, making
it the most widely used crisis management service in Japan.
Information security services, which encompass
comprehensive, around-the-clock support to protect
customers’ information from cyber attacks, range fromadvance diagnostics and preventative measures tomonitoring and the implementation of countermeasures in

40

SECOM REPORT 2022

the event of an incident. Secom Trust Systems also
capitalize on its competitive advantages as a certification
authority, responsible for the management of cryptographic
keys, to guarantee the safe and secure transmission of
information using devices on the IoT. With far-reachingchanges, notably the declining use of personal seals; theexpansion of remote work; and the growing popularity ofprocedures that don’t require face-to-face contact (including
electronic signatures, time stamps and electronic seals),trust services* are attracting heightened attention in Japan.
Secom Trust Systems is striving to ensure that its platform
for the provision of trust services is the choice forgovernment and private sector cloud-based electronic
contract services.
Secom Trust Systems also offers a variety of cloudbased services that improve the efficiency and convenienceof customers’ operations, and help reduce costs, including a
document digitization service that digitizes contracts andminutes of meetings in compliance with related legislations,and personnel/salary/labor management services that
accommodate various work styles flexibly. In December
2021, SECOM Shift Scheduler, an AI-powered service that
automatically generates optimal shift rosters, was linked
with third-party attendance management system KING OF
TIME, the leader in Japan’s market for such systems, further
enhancing convenience and efficiency for customers.
Going forward, Secom Trust Systems will continue torespond to DX-related needs and increasingly diverse work
styles by creating and extending convenient and secure ICT
services.
*Trust services are services used to verify individuals, organizations and data
online and prevent the falsification of information and spoofing. In lines with
the EU Regulation 910/2014, commonly called eIDAS (for “electronic
identification (eID), authentication and trust services (AS)”), Japan’s Ministryof Internal Affairs and Communications is spearheading comprehensive
studies aimed at securing interoperability with other countries and crossborder compliance.

Data center services
Data center operator At Tokyo capitalizes on its more than
two decades of experience and operational know-how todeliver uninterrupted, around-the-clock data center services
that have earned a reputation for world-class quality andreliability. In addition to the technological capabilities andin-house configuration necessary to support zero-downtime
operations, At Tokyo boasts flexible and expandable external
connectivity as a global hub, creating an important IT
infrastructure for companies for which system outages
would significantly impact society. In response todiversifying market needs related to rapid digitalization
across the country, At Tokyo—which had originally focused
its efforts to establish data centers on Tokyo—opened its firstdata center in Fukuoka in November 2021 and its third
facility in Osaka in April 2022. The company also plans toopen a data center in Hokkaido in the autumn of 2022. A
hyperscale urban data center is also scheduled to open
in the Tokyo metropolitan area in 2024, bolstering thecompany’s ability to address rising demand for data
center services.
At Tokyo’s data centers serve as network hubs, bringing
together multiple domestic and overseas service providers
and telecommunications carriers. Leveraging thesecapabilities, the company also offers ATBeX (“At Tokyo
Business eXchange”) a service platform that facilitates
flexible, low-latency, cost-effective access to megacloud andon-premises services offered by these enterprises. In
summer 2022, At Tokyo will launch ATBeX Fukuoka Access
Point in Kyushu, which will increase the ATBeX platform’s
wide accessibility.

high-grade BPO services that ensure security and peace ofmind continues to increase. BPO services company TMJ ishighly rated by financial institutions and a wide range ofother companies for its extensive contact center and backoffice support services.
For customers with business models involving brickand-mortar retail facilities that users visit in person,
reconsidering customer service staff and improving
operational efficiency are key challenges, underscored byefforts to improve operational efficiency by introducing
cashless transactions and self-checkouts, as well as theaccelerated introduction of unattended facilities. In response,
TMJ has begun offering service counter support forunattended facilities that make it possible to conduct facial
and ID verification remotely using video images and thus toserve customers online. This enables consolidation of theservice counter operations of several facilities, which helps
to optimize operating costs and standardize service quality.
TMJ also extends support for online customer service andthe unattended operation of retail facilities, from crucial
business support systems and the preparation of manuals toactual operational assistance.
With the expansion of mobility-related business, asevidenced by the rising popularity of car sharing, among
others, TMJ recently opened a specialized mobility as aservice (MaaS) and mobility business solutions center in
Sapporo. Looking ahead, the company will continue toreinforce its operational know-how to broaden this new
facility’s role as a dedicated provider of diverse services that
supports next-generation mobility-related services.

BPO services
Against a backdrop characterized by a declining labor force
and the social changes brought by COVID-19, demand forOnline service counter
support for unattended
facilities (TMJ)

At Tokyo data center

SECOM REPORT 2022

41

ESG Initiatives

Social initiatives:
Seeking to deliver safety and peace of mind for anyone and everyone

Core theme 1

Occupational health and safety

Preparation of manuals that draw on our accumulated know-how and promotion of training to ensure employee
safety and collaboration with the SECOM Health Insurance Union to manage employee health
We believe that our ability to provide safety and peace of mind
to our customers depends on first ensuring the health andvitality of our employees. Accordingly, we promote various
initiatives aimed at protecting and enhancing employee healthand creating safe, employee-friendly workplaces.
The Human Resources Department has established asystem to comprehensively manage occupational health incollaboration with the Health Promotion Office, which isstaffed with occupational health physicians (OHPs), and the
SECOM Health Insurance Union. To promote continuous
improvements 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, andprevent risks. We also actively care for employees’ mental
health, conducting stress checks, arranging meetings withpsychiatrists and specialized counselors, to make certain that
employees feel both physically and mentally supported.
To ensure occupational safety, the Operations Divisionverifies day-to-day security operations and works to reduce
identified occupational safety risks. Our operational andcontrol structure facilitates the efficient exchange of reports
and instructions between the front lines and senior
42

SECOM REPORT 2022

management, ensuring that the latter is fully apprised of
day-to-day operations across Japan and is able to provide
guidance for the improvements where necessary to enhanceoccupational safety. The division has developed procedures
and equipment designed to prevent accidents and promotes
initiatives to improve employee skills, including a programthat seeks to improve driving techniques. Efforts to ensureParticipants in Training Aimed at Preventing Occupational
Accidents(Number of people)

3,000

2,739
2,391

2,348
2,000

1,000

0

2020

2021

2022
(Years ended March 31)*Scope of reporting: SECOM CO., LTD., and certain SECOM Group companies

safe, employee-friendly workplaces also include the provision

accidents, including that related to the risk of securityof extensive training aimed at preventing occupational

accidents in various situations.

Core theme 2

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

Efforts to ensure the full penetration of SECOM’s Philosophy and encourage strict compliance with the SECOM
Group Code of Employee Conduct to bolster employee motivation and earn the trust of society
Encouraging awareness of SECOM’s Philosophy andadherence to the SECOM Group Code of Employee Conduct
are essential to maximizing the trust of stakeholders and our
corporate value. Handed down since our establishment,
SECOM’s Philosophy provides a spiritual anchor for Group
employees and the entire SECOM Group. The driving force
behind our growth and evolution, this philosophy emphasizes
a refusal to be content with the status quo and a commitment
to doing what is appropriate. The first element expresses ourdetermination to offer innovative services and systems bychallenging accepted norms, while the second calls for
judging the legitimacy of our actions by examining whether
they are just, fair, and beneficial not only to SECOM but also tosociety as a whole. The SECOM Group Code of Employee
Conduct sets forth ideals for the conduct of employees in bothpublic and private life and specific standards for the day-today performance of duties. We have published SECOM’s
Philosophy and the SECOM Group Code of Employee Conduct
Core theme 3

in the form of handbooks and pocket-sized guides, which are
distributed to employees in Japan and overseas.
Questions on SECOM’s Philosophy and the SECOM Group
Code of Employee Conduct are included in our e-learning
program, which is provided annually, and employees’compliance status is reflected in their semiannual
performance reviews. An employee who becomes aware of aviolation is obliged to submit a report to his or her superior. In
addition, we have established a whistle-blowing system. We
are currently using IT equipment and taking other steps topromote more strict observance.
Since 2018, we have promoted the Tri-ion initiative, whichseeks to ensure that SECOM’s Philosophy fully penetrates
every aspect of our operations and to bolster motivation andproductivity Groupwide. Through this initiative, we aim tonurture employees who embody SECOM’s Philosophy tofoster a stronger corporate culture, ensure a well-establishedbrand, and further earn the trust of society.

Securing and fostering talented human resources

Focus on securing and fostering talented human resources who have the ability to adapt to change and create
value and who seek to contribute to society
Our vibrant, diverse team of employees, who are critical to
our ability to provide services that deliver safety and peaceof mind, are our greatest asset and another driving force
behind our growth and evolution. Accordingly, we strive tosecure and foster talented human resources who have theability to adapt to change and create value and who seek tocontribute to society.
As a company that extends services across Japan andaround the world, we promote active recruiting efforts. We
also work to enhance employee welfare with the goal of
improving our ability to retain human resources and haveestablished a variety of programs designed to boost
motivation and productivity, as well as to create employeefriendly workplaces. One such program enables employees tochoose the geographic location to which they are assigned tosuit career phase or personal preference.
We provide extensive training to foster human resources
with high ethical standards and superior skills. In addition to
training for all new employees, we have developed department-

and job-specific curricula that reinforce practical capabilities ina manner that benefits employees on the front lines. We have
Participation in Training Programs(Hours)325,000(Number of people)
Hours spent in training (left scale)

18,000289,364
15,884250,000

Participants(right scale)

12,000201,640

215,764
8,229

175,000

6,000

6,190
100,000

0

2020

2021

2022
(Years ended March 31)

Notes: 1. Scope of reporting: SECOM’s four domestic human resources
development centers
2. Figures include participants in training to provide security services
for the Rugby World Cup Japan 2019 and the Olympic andParalympic Games Tokyo 2020.

SECOM REPORT 2022

43

ESG Initiatives

also launched a variety of specialized training options, including
an overseas study program and a subsidy system for
employees to take correspondence courses. In the area of
training for security guards, we have introduced VR technology,
among others, to improve effectiveness and ensure employees
acquire excellent discernment and know-how.
Employee performance reviews look to impartiallyevaluate employees’ efforts and support self-realization.
Evaluations are based on reports prepared by employees
Core theme 4

assessing their execution of duties, achievements, and areas
in need of improvement, and rational assessment categories
optimized for each particular job. We use an open and fairformat whereby review results are disclosed to employees. In
addition, we promote self-actualization through systems
designed to assist with career development, including the
Self-Reporting System and Challenge Support System, which
encourage employees to declare and assists their efforts torealize their own future goals and aspirations.

Advancing diversity

Assignment of diversity and inclusion staff to the Human Resource Department to promote the creation of
positive work environments in which diverse employees can maximize their capabilities
Recognizing the importance of welcoming a broad spectrumof individuals with wide-ranging ideas to the creation of newvalue, 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 Resources Department. We
currently promote the creation of work environments thatmaximize 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 achieve the objectives of the plan by
actively fostering female leaders, expanding the scope ofjobs available to female employees, taking steps to prevent
harassment, and promoting work-life balance, thereby
creating positive working environments for women.
Labor Force by Gender

As of March 31, 2022

Male

FemaleExecutive management

89.6%

10.4%

Other

79.6%

20.4%

Total

82.8%

17.2%

Action Plan for Fostering Career Opportunities for
Female Employees
Period:April 1, 2021–March 31, 2026
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 assistant manager or higher,
and 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.
• 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.

*Scope of reporting: SECOM CO., LTD.

Core theme 5

Promoting work–life balance

Establishment of programs and promotion of ongoing efforts to enhance work–life balance and increase
employee retention
We view work–life balance, including sufficient physical andmental rest and a fulfilling private life, as essential to theability to approach one’s work with energy and focus. In

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SECOM REPORT 2022

addition to actively encouraging employees to take annual
paid vacation days, we have established vacation and leavesystems in line with which we promote ongoing efforts to help

employees achieve a balance between their careers andprivate lives and enhance employee retention.
Flex vacation: Enables employees to take 10 consecutive
vacation days annually, in theory at any time during the year
Refresh vacation: A two-week vacation available toemployees every 10 years
Maternity leave: Available for the six weeks prior to andeight weeks after giving birth. An additional two weeks isavailable to employees who wish to start their maternity
leave earlierChildcare leave: Can be taken by both female and male
employees up until the day before the child’s third birthday
Change in working hours/exemption (shorter working
hours) for childcare: Available within certain restrictions
on request to employees who are pregnant or havechildren who have not yet entered the third grade ofelementary school (exceeds legal requirement, which is
children under the age of three)Nursing care leave or change in working hours/
exemption (shorter working hours) for nursing care:
Full leave or adjusted working hours for up to six months(maximum of 186 days) for employees providing nursing
care to a family member wishing to return to work full-timeafter conclusion of nursing care provision
SECOM Life Support Program: Allows employees totemporarily change work style and/or location to which
they are assigned to provide childcare or nursing care or toaccompany a spouse who has been transferred overseas
and provides support for long-term career advancement
Job Return Program: Enables people who have left
employment at SECOM for unavoidable reasons such as
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)(Number of people)

70

200

183

62.0
58.8

60

53.2

150
100

50
50

Total
(left scale)

40

31

154

30

127
Male
employees(right scale)

22
20

10

10

0

40

2020

2021

*Scope of reporting: SECOM CO., LTD.

Core theme 6

0

2022

2020

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

2021

2022
(Years ended March 31)

Dialogue with employees

Employee job satisfaction surveys and the exchange of opinions between the SECOM Employee Union
Federation and executives to facilitate the creation of employee-friendly workplaces
We seek to achieve sustainable growth as a strong, flexible
organization that is impervious to the impact of socialchange and the competitive environment. We are thus
working to create a virtuous circle, recognizing theimportance of enabling employees who share SECOM’s
Philosophy to demonstrate their full potential, which helps
raise the quality of the services and products we provide,
thereby enhancing customer satisfaction and earning thetrust of society, which in turn increases employees’ jobsatisfaction. Since 2016, we have conducted an annual
anonymous employee job satisfaction survey. In the fiscal
year ended March 31, 2022, the response rate for this survey
was 82.1%.
Reflecting our fundamental belief that the growth of ouremployees is inextricably linked to our prosperity, we signed
a union membership qualification agreement with SECOM
Lively Union (the SECOM Employee Union Federation), which

was established in 1964, and became a union shop, meaningthat in principle employees automatically become union
members when they are hired. As a consequence, our union
membership rate for eligible employees is 100%.
We place a priority on dialogue between labor andmanagement. With the aim of boosting employee morale,building a vibrant and healthy organizational culture andmaximizing organizational energy, the management
representatives, including the President and Representative
Director, meet monthly with SECOM Lively Union to exchange
views. Discussions are also held at SECOM Group companies
and branches across Japan to address issues such as
improving workplace environments and operating procedures
and ensuring occupational health and safety. SECOM Lively
Union also exchanges views with management throughmeetings with employees on organizational culture and the
SECOM Employee Central Council.

SECOM REPORT 2022

45

ESG Initiatives

Governance initiatives:
Working continuously to enhance and strengthen corporate governanceCore theme 1

Corporate governanceIndependent oversight of management and ensure proper business execution while working to actively disclose
information to shareholders and other stakeholders
Initiatives to strengthen corporate governance1986
Establishment ofcorporate governancesystem
Separation of management
and execution
Number of directors designatedin the Articles of Incorporation

2000

2010

1986: Creates SECOM’s Philosophy
2006: Formulates basic rules of management for SECOM Group companies
2010: Establishes the SECOM Group Management Committee
2004: Institutes an executive officer system
Up to 2004: Maximum of 40 From 2005: Maximum of 20

Term of service of
directors

Up to 2003: 2 years From 2004: 1 year

Number of directors

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

Number of auditors

Up to 2010: 4 From 2011: 5

Number of outside
directors
Number of outside
auditors
Remuneration for/appointment of directors

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SECOM REPORT 20222020

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

Basic philosophy
With the aim of earning the continued support of ourcustomers, shareholders, business partners, employees,
local communities, and other stakeholders as a company
with value that is worthy of trust, we strive to maximize
corporate and shareholder value over the medium to longterm and recognize the importance of fulfilling our
responsibilities as a corporate citizen and achieving
sustainable growth and development.

In line with Japan’s Corporate Governance Code and at
the direction of top management, outside members of theBoard of Directors and Audit & Supervisory Board provide
independent oversight of the management team’s
performance in a manner that takes into account theinterest of stakeholders and ensures the appropriate
execution of business activities. We also work actively todisclose information to shareholders and other stakeholders
and strengthen our compliance framework.

Outline of corporate governance system
We are a company with an Audit & Supervisory Board. The
Board of Directors determines overall management andbusiness execution policies. Executive officers, led by the
President and Representative Director, are responsible forbusiness execution. The Audit & Supervisory Board, which
includes three outside members, and the Board of Directors
coordinate with the internal audit departments to audit andsupervise directors’ and executive officers’ discharge of theirduties. Under our corporate governance system, four outside
directors are also appointed to the Board of Directors toincorporate external perspectives in decision making andensure the legality and objectivity of management. We
believe that this enables us to conduct independent oversightof management and ensure appropriate business execution.
The Nomination and Compensation Committee has been
established as a discretionary committee of the Board of
Directors. This committee, which is responsible for presenting
candidates for the position of director to the Board of Directors
and for ensuring the appropriateness of remuneration for
directors, comprises six directors, four of whom are outside.

Corporate Governance Organization
General Meeting of Shareholders
Appointment/
dismissal

Board of Directors(10 members, four of whom
are outside directors)
Selection/
oversight

Appointment/
dismissal

Proposal of candidates forthe position of director
Authorization/consultation
regarding remuneration
Determination/submission ofdecisions regarding remuneration

Nomination
andCompensation
Committee

Reporting on important matters

Audit & Supervisory Board(Five members, three ofwhom are outside)
Office of Audit & Supervisory Board:
Three employees(Operational, accounting and compliance audits)

Chairman and
Representative Director
President andRepresentative 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

Board of Directors

Executive Officers

Audit & Supervisory Board

The Board of Directors comprises 10
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 10 members are
responsible for business execution, withthe remaining four members (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 28 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 2022

47

ESG Initiatives

Nomination of candidates for appointment to the Board of
Directors and the Audit & Supervisory Board
In accordance with the policy for appointment set forth by
the Board of Directors, candidates for appointment to theBoard of Directors and the Audit & Supervisory Board are
decided through deliberation by the Board of Directors.

Candidates for the Board of Directors are nominated fromamong candidates determined through discussion by the
Nomination and Compensation Committee, the majority ofwhom are outside directors. Candidates for the Audit &Supervisory Board are nominated with the agreement of the
Audit & Supervisory Board.

Skills Matrix for SECOM Directors and Audit & Supervisory Board Members

Name and position

Corporate
management

Finance andaccounting

Legal affairs,
complianceand riskmanagement

Sustainability
and
ESG

Security
services
industry

Globalbusiness

ICT andtechnology

Yasuo Nakayama
Chairman and
Representative Director

Ichiro Ozeki
President andRepresentative Director

Yasuyuki Yoshida
Senior Executive Director

Tatsuro Fuse
Executive Director

Tatsuya Izumida
Director

Tatsushi Kurihara
Director

Takaharu Hirose
Outside Director

Hirobumi Kawano
Outside Director

Hajime Watanabe
Outside Director

Miri Hara
Outside Director

Takayuki Ito
Audit & Supervisory Board
MemberKoji Kato
Audit & Supervisory Board
Member

Hideki Kato
Outside Audit & Supervisory
Board Member

Makoto Yasuda
Outside Audit & Supervisory
Board Member

Setsuo Tanaka
Outside Audit & Supervisory
Board Member
Notes: 1. A maximum of four areas of knowledge and experience are indicated for each Director and Audit & Supervisory Board member.
2. This skills matrix does not represent the entire breadth of knowledge and experience of each Director and Audit & Supervisory Board member.

48

SECOM REPORT 2022

Internal audits and cooperation among board members
and offices
Audits by Audit & Supervisory Board members
Audit & Supervisory Board members attend important
meetings, including those of the Board of Directors, toexchange opinions on overall corporate management, as
well as to collect reports on the discharge of duties fromdirectors and other pertinent individuals and conduct audits
focused on the possible occurrence of violations of laws,
regulations, the Articles of Incorporation and/or shareholders’interests. The Audit & Supervisory Board also conducts
audits of our overall business activities, as well as those of
subsidiaries and affiliates, in accordance with annual audit
plans.
Principal Activities of Audit & Supervisory Board membersin the Fiscal Year Ended March 31, 2022
Participation in meetings of the Board of Directors

100%

Participation in meetings of the Audit &Supervisory Board

100%

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

76 times

Audits conducted by Audit & Supervisory Board
members at remote locations

76 locations

Regular meetings between the President and Representative
Director and Audit & Supervisory Board members
Audit & Supervisory Board members hold regular (monthly)
meetings with the President and Representative Director,
during which they exchange opinions on importantmanagement-related issues, including the results of audits,
to ensure common understanding.
Meetings between Audit & Supervisory Board members
and accounting auditors
Audit & Supervisory Board members meet regularly (sixtimes annually) with the accounting auditors, as well as
additional meetings as necessary, for the purpose of
exchanging opinions and information. Audit & Supervisory
Board members receive explanations and exchange opinions
regarding annual audit plans and audit results. If necessary,
Audit & Supervisory Board members also act as witnesses
during audits conducted by the accounting auditors at
remote locations and during audit reviews (22 times in thefiscal year ended March 31, 2022).
Collaboration with internal audit and other departments
Audit & Supervisory Board members hold regular (monthly)
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
from and exchange opinions and information with the Group
Governance Department. If necessary, to ensure theefficiency of audits, Audit & Supervisory Board members ask
the internal audit departments to conduct investigations.

Outside directors and outside Audit & Supervisory Board members
We appoint individuals who have extensive knowledge ofcorporate management to serve as outside directors, thereby
incorporating a broad range of external perspectives notconstrained by the internal affairs. We thus have a structurethat ensures the transparency and objectivity of management.
We appoint Audit & Supervisory Board members who
have a wealth of knowledge of corporate management, legal,financial and other matters (including three outside members,
who are essentially independent of the management team).
We have also established an auditing organization (including
the Office of Audit & Supervisory Board Members) that
operates independent of day-to-day operations and a process(including periodic meetings between the President andRepresentative Director, among others, and the Audit &Supervisory Board members). This ensures that Audit &Supervisory Board members’ objective and neutral opinions
are reflected promptly in operations. As a consequence, we
believe that we fulfill our responsibility to conduct
independent oversight of management performance in amanner that takes into account the interests of stakeholders.
We appoint outside directors and outside Audit &Supervisory Board members on the basis of pertinent
requirements set forth in Japan’s Companies Act and thestandards concerning independence set forth by financial
instruments exchanges.

SECOM REPORT 2022

49

ESG Initiatives

Outside Directors and Outside Audit & Supervisory Board Members

Name

Principal activities

Takaharu Hirose

Mr. Hirose offers advice and recommendations at meetings ofthe Board of Directors based on experience and insights gainedin the foundation and management of multiple enterprises andindustry organizations. In addition, he participates indeliberations of the Nomination and Compensation Committee
as a member thereof. Through these activities, he performs his
supervisory function as an outside director adequately.

Hirobumi Kawano

Outsidedirectors

Hajime Watanabe

Miri Hara

Hideki Kato

OutsideAudit &
Supervisory
Board
members

Makoto Yasuda

Setsuo Tanaka

Mr. Kawano offers advice and recommendations at meetings ofthe Board of Directors based on experience and insights gained
through the holding of important positions in government. In
addition, he participates in deliberations of the Nomination andCompensation Committee as a member thereof. Through these
activities, he performs his supervisory function as an outside
director adequately.
Mr. Watanabe offers advice and recommendations at meetingsof the Board of Directors based on experience and insights
gained through his many years of experience in corporate
management. In addition, he participates in deliberations of theNomination and Compensation Committee as a member thereof.
Through these activities, he performs his supervisory function
as an outside director adequately.
Ms. Hara offers advice and recommendations at meetings of theBoard of Directors based on experience and insights gained as acorporate officer and a tax accountant. In addition, sheparticipates in deliberations of the Nomination andCompensation Committee as a member thereof. Through these
activities, she performs her supervisory function as an outside
director adequately.
Mr. Kato offers advice and recommendations at meetings of theBoard of Directors, among others, based on experience gained
through the execution of national policies and insights gained asa result of his accomplishments at a policy think tank. He alsoasks questions and states opinions to clarify issues.
Mr. Yasuda offers advice and recommendations at meetings ofthe Board of Directors, among others, based on experience andinsights gained in the management of a global enterprise. He
also asks questions and states opinions to clarify issues.
Mr. Tanaka offers advice and recommendations at meetings ofthe Board of Directors, among others, based on experience andinsights gained through the holding of important positions ingovernment. He also asks questions and states opinions toclarify issues.

Attendanceat Board of
Directors’
meetings

Attendanceat Audit &Supervisory
Board meetings

13
—
13

13
—
13

13
—
13

13
—
13

13

12

13

12

13

12

13

12

13

12

13

12

Note: Information on attendance at meetings of the Board of Directors and Audit & Supervisory Board is for the ﬁscal year ended March 31, 2022.

50

SECOM REPORT 2022

Remuneration for directors and Audit & Supervisory Board members
Remuneration for directors consists of pecuniary remuneration(fixed monthly salary and bonuses) and share-based
remuneration (shares with restrictions on transfer). Outside
directors receive a fixed salary only. The fixed monthly salary
portion of pecuniary remuneration paid to directors and theshare-based remuneration paid to directors (excluding
outside directors) are determined comprehensively inconsideration of job responsibilities and years of service, as
well as the performance of the Company. Bonuses paid to
directors (excluding outside directors) are determined basedon consolidated operating profit, a key management target, as

well as on job responsibilities and years of service. The
relative proportion of fixed monthly salary, bonuses, andshared-based remuneration paid to directors (excluding
outside directors) is approximately 80:15:5.
Remuneration for Audit & Supervisory Board members,
which comprises pecuniary remuneration only, is determinedthrough discussion involving Audit & Supervisory Board
members in amounts commensurate with job responsibilities.
Remuneration for Audit & Supervisory Board members is set
within the maximum limit resolved at the Ordinary General
Meeting of Shareholders.

Remuneration for Directors and Audit & Supervisory Board Members in the Fiscal Year Ended March 31, 2022
Breakdown of total remuneration (Millions of yen)
Position

Total
remuneration(Millions of yen)Basicremuneration
Fixed salary

Performance-based
remuneration
Stock options

Nonpecuniary
remuneration

Bonus

Number ofentitled
individuals

Restricted stock

Directors(excluding outside directors)

374

298

—

57

18

7

Audit & Supervisory
Board members(excluding outside members)

45

45

—

—

—

2

Outside directors

40

40

—

—

—

4

Outside Audit & Supervisory
Board members

25

25

—

—

—

3

Total

485

409

—

57

18

16

Note: The target for consolidated operating proﬁt for the ﬁscal year ended March 31, 2022, was ¥139,500 million, while the actual result was ¥143,499 million.
(Japanese GAAP)

Philosophy regarding the diversity and size of the Board of Directors
The Board of Directors consists of internal directors, who arefamiliar with SECOM’s businesses and have diverse
knowledge, and several outside directors with extensive
insight in corporate management and other areas. Diversity
in terms of gender and international experience is ensured

and the number of members is appropriate to facilitate
discussions and resolutions of substance. We will continue
working to enhance the effectiveness of the Board of
Directors by promoting further diversity and ensuring theappropriate size of the Board.

SECOM REPORT 2022

51

ESG Initiatives

Evaluation of the Board of Directors’ effectivenessEvaluation process
The effectiveness of the Board of Directors is evaluatedannually. In the period under review, a survey was conductedin January 2022 and responses were collated by the Board’s
secretariat in early March. Findings were subsequently
discussed by the Board.
Summary of findings
Composition of the Board of Directors
The opinion was expressed that the diversity of the Board of
Directors and the balance between execution and oversightare suitable and that the Board is an appropriate size toensure active discussion and swift decision making. While it
was acknowledged that the appointment of a female director
in 2020 has improved gender diversity, and that thepercentage of outside directors has increased, constructive
views were also expressed regarding further diversificationof the Board’s composition in terms of gender and otherconsiderations, including the need to promote female
directors from within.
Administration of Board of Directors’ Meetings
The Board of Directors meets once monthly in principle toenable swift discussion and resolution of critical matters. To
ensure that directors and Audit & Supervisory Board
members are able to make appropriate decisions, mattersdeemed particularly critical are discussed by the Board of
Directors prior to resolution and a progress report on thosematters is made to the Board of Directors subsequent toresolution. Both outside directors and outside Audit &Supervisory Board members actively made comments andexpressed the opinion that the atmosphere was conducive tofree and open discussion. The view was also expressed that
improvements in the process for advance discussion andreporting on ongoing progress had been seen since theprevious survey. Various opinions were also expressed,
including that opportunities should be created for freedebate, thereby invigorating discussion, as well as forfurther communication with outside directors.
Oversight function of the Board of Directors
Matters handled by the Board of Directors were selected
appropriately, based on the Rules of the Board of Directors,
and the opinion was expressed that discussions on
management policies and corporate philosophy wereadequate. In addition, constructive views were expressed
regarding concrete discussions on the progress of
discussions, currently being undertaken from a mediumto long-term perspective, on the general direction ofmanagement strategies and changes in the operating
environment and related risks arising from technologicalinnovation and a declining labor force.
Future initiatives
To further enhance corporate value and realize an evenmore effective Board of Directors, we will continue topromote efforts to improve the Board’s functions based on
evaluations and opinions expressed.

Status of strategic shareholdings
Policy on shareholdings
We may, after comprehensive examination, acquire and/or
hold listed shares for the purpose of business participation,
collaboration, capital or business tie-up, business incubation,or the maintenance or expansion of transactions involving
our services and products.

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SECOM REPORT 2022

Verification of the rationality of shareholdings
The Board of Directors assesses the benefits and risks arisingfrom each holding annually. In addition to confirming thestatus of transactions with, as well as the growth potential
and profitability of, each investee company, based on financial
condition and operating performance, we comprehensively
examine the appropriateness of the holding and determine
whether it should be maintained.

Directors, Audit & Supervisory Board Members and Executive Officers(As of July 31, 2022)

Directors

Yasuo Nakayama

Ichiro Ozeki

Yasuyuki Yoshida

Tatsuro Fuse

Chairman and
Representative Director

President andRepresentative Director

Senior Executive
Director

Executive Director

Tatsuya Izumida

Tatsushi Kurihara

Takaharu Hirose

Hirobumi Kawano Hajime Watanabe

Miri Hara

Director

Director

Outside Director

Outside Director

Outside Director

Outside Director

Audit & Supervisory Board Members

Takayuki Ito

Koji Kato

Hideki Kato

Makoto Yasuda

Setsuo Tanaka

Audit & Supervisory
Board Member

Audit & Supervisory
Board Member

OutsideAudit & Supervisory
Board Member

OutsideAudit & Supervisory
Board Member

OutsideAudit & Supervisory
Board Member

Executive Team
Directors

Executive Officers

Yasuo Nakayama

Kenichi Furukawa

Kensuke Shindo

Noriyuki Uematsu

Toshinori Sugimoto

Chairman and
Representative Director

Managing Executive Officer

Executive Officer

Executive Officer

Executive Officer

Osamu Ueda

Yasufumi Kuwahara

Atsushi Komatsu

Satoshi Araki

Ichiro Ozeki

Managing Executive Officer

Executive Officer

Executive Officer

Executive Officer

President andRepresentative Director

Yoshinori Yamanaka

Noriyuki Fukuoka

Takehiko Senda

Satoshi Takizawa

Managing Executive Officer

Executive Officer

Executive Officer

Executive Officer

Yoichi SugimotoTakeshi Akagi

Takashi Nakada

Izumi Sawamoto

Managing Executive Officer

Executive Officer

Executive Officer

Executive Officer

Sumiyuki Fukumitsu

Sadahiro Sato

Michiyoshi Morita

Managing Executive Officer

Executive Officer

Executive Officer

Osamu Nagai

Seiya Nagao

Makoto Inaba

Managing Executive Officer

Executive Officer

Executive Officer

Yasuyuki Yoshida
Senior Executive Director

Tatsuro Fuse
Executive Director

Tatsuya Izumida
Director

Tatsushi Kurihara
Director

SECOM REPORT 2022

53

ESG Initiatives

Messages from Outside Officers

Takaharu Hirose

Miri Hara

Outside Director

Outside Director

Important position concurrently
held in another organization

Important positions concurrently
held in other organizations

Chairman and Representative Director,
Monitas, Inc.

Representative Certified Public Tax
Accountant, Tax Corporation Yokohama
Benten Accounting, Inc.
Outside Director, Nippon Sanso Holdings
Corporation

SECOM’s Board of Directors meetings are very lively and theupbeat atmosphere ensures participants are able to discuss
things in a free and open manner. When deliberating andvoting on important proposals, we receive easy-tounderstand explanations, based on relevant material, in
advance, enabling us to engage in active, informed
discussions. Ever since taking up this position in 2013, theinside directors, including the Board’s chairperson, havetaken a positive view of incorporating the views of outside
directors and outside members of the Audit & Supervisory
Board into management strategy. When I was first
appointed, though, my impression was that the Company
was rather conservative, which seemed fitting for a security
services company. I am proud that by providing objective,
sometimes opposing, opinions, I and the other outside
directors have been able to play a role in galvanizing theBoard of Directors to be more proactive in taking onchallenges. The Company’s 10 directors currently include
four outside directors. We come from a variety ofbackgrounds and bring a wealth of knowledge, so I believe
this is an appropriate composition.
Since my student days, I have been involved in the
launch of start-ups and the establishment and managementof industry associations. Based on my experience, I
have spoken at Board of Directors meetings about theneed to be open to incorporating new technologies fromother companies, rather than insisting on only using theCompany’s own technologies, given the dizzying pace oftechnological change today. This is one factor that has
encouraged SECOM to promote open innovation. Looking
ahead, I would like to help create a system for fostering
the ambitious young employees that will be responsiblefor driving the SECOM Group forward and ensuresustainable growth.
With society continuing to evolve dramatically, I see oneof my roles as outside director as being to encourage theBoard of Directors to further advance discussion from a
medium- to long-term perspective regarding, among others,
the general direction of management strategies andassociated risks in an era of uncertainty.

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SECOM REPORT 2022

Two years have passed since I was appointed to the positionof outside director at SECOM. The Board’s chairperson
actively encourages all directors to speak at meetings, so
discussions are always spirited. If I have any questions, I
can ask them frankly and without trepidation and therelevant inside director will respond and provide a detailed
explanation. One time, I asked if it was possible to create a
simpler monitoring system for seniors. This was just about
the time we announced the SECOM Monitoring Service for
Seniors, which allows family members to monitor seniors
from a smartphone. Listening to the meticulous explanation
given by the director, I was reminded once again of the firm
grasp SECOM has on the needs of a diverse range ofcustomers.
I recognize that expressing opinions from theperspective of a woman with experiences that have real
relevance to the daily lives of ordinary people is also
something expected of me as an outside director. I am
concerned about the fact that SECOM has only one woman
on its Board of Directors. In April 2021, the Company
formulated an action plan for fostering career opportunities
for female employees and works to support women’s
efforts to achieve a balance between their careers andprivate lives. If feasible, I would like to have the opportunity
to meet with female employees to discuss measures tofurther bolster their professional motivation.
In recent years, companies’ efforts to address ESGrelated issues are attracting considerable attention. To
my mind, SECOM’s greatest strength on this front is thatit has always conducted its operations in accordancewith a corporate philosophy and code of conduct thatemphasize social contribution and the fair assessment ofvalue. SECOM has taken its first steps toward becoming a
global organization. I look forward to the SECOM Group’s
people around the world remaining true to its corporate
philosophy as they seek to respond to the universal desire
for ANSHIN, peace of mind, earn the trust of customers andexpand the Group’s presence in overseas markets.

Core theme 2Compliance

Efforts to improve compliance by promoting strict adherence to the SECOM Group Code of Employee Conduct
Basic philosophy
We provide security services, the objective of which is toprotect the lives and assets of our customers from legal
violations or malfeasance by third parties. As such, we
recognize that it is essential that we conduct our duties ingood faith and in a manner deserving of the trust of ourcustomers and society. A key feature of the security services
business is that the employees who provide services are in aposition of regulating others. Because they are in thisposition of regulating others, employees must also conduct
themselves in a disciplined manner, discharging their duties
in good faith and in compliance with the letter and the spiritof the law, to earn the trust of customers, which is critical to
the security services business. Since our establishment, wehave viewed compliance as a matter of utmost importance.
Accordingly, our basic policy has always been to promote

systematic measures to ensure all employees’ unqualifiedcompliance with the letter and spirit of the law. This has
earned us the trust of a wide range of customers andsupported steady growth.
The SECOM Group Code of Employee Conduct prescribes
specific standards for employee behavior and ethicalprinciples that must be observed by all executives andemployees in their relationships with stakeholders, including
communities, customers, and business partners. The code,
which is also published in the form of a pocket-sized guide,
thus serves as a universal and timeless template foreveryone in the SECOM family. Standards govern, among
others, deterring relations with antisocial elements,
prohibiting of corruption and bribery, and complying withrelated laws.

System for promotion and administration
We recognize compliance as not only the observance of laws
and regulations, and of SECOM’s Articles of Incorporation,
but also the foundation of the stringent management of our
day-to-day operations. Individual employees are responsible
for promoting adherence to the SECOM Group Code of
Employee Conduct. Managers are charged with providing
guidance regarding the SECOM Group Code of Employee
Conduct, including standards governing compliance, andsupervising the actions of employees to ensure compliance.
Executive officers are responsible for overseeing thedepartments they supervise, while the President andRepresentative Director provides control for the Company
as a whole.

Once annually, executive officers analyze and evaluatebusiness and malfeasance risks in the business for which
they are responsible and report their findings to the
President and Representative Director and the members of
the Audit & Supervisory Board, as well as review establishedinternal rules and various manuals and make revisions asnecessary.
The duties of the internal audit departments, i.e., theInternal Audit and Compliance Department and the Group
Governance Department, include inspecting each group,
department, and subsidiary, providing guidance on addressing
matters requiring corrective action, and reporting inspection
results to the President and Representative Director, as wellas to relevant executive officers.

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ESG Initiatives

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

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

employees to report to their superior should they discoverreports are kept confidential. As long as a report has beenthat an employee, executive, or individual affiliated with amade in good faith, whistle-blowers are protected from any

subcontractor has engaged in or appears likely to engage

adverse impacts even if the report is not borne out by thein an action that violates the code or could damage thesubsequent investigation. Pertinent executive officers are

credibility of the Company. In the event that no corrective

obliged to swiftly assess the results of investigations and takemeasures are taken after a report has been made, or if

appropriate corrective measures to resolve the situation.

circumstances make reporting to a supervisor difficult,

Whistle-blowers are notified confidentially of the nature andemployees may report directly to the Internal Audit andoutcome of investigations.

Compliance Department via the Hot Helpline, or to the
Human Resources Department and Internal Audit andWhistle-Blower Reports Received

Compliance Department via the Harassment Help Desk.

Year ended
Year ended
Year ended
March 31, 2020 March 31, 2021 March 31, 2022

Executives and employees of subsidiaries may reportviolations via the Group Head Office Helpline directly to
the Group Governance Department.

Number ofreports

56

74

92

Note: Numbers represent the actual number of reports received across the
SECOM Group. Beginning in the fiscal year ended March 31, 2022, thisincludes reports received through the Hot Helpline, the Group Head
Office Helpline and the Harassment Help Desk.

Organizational Culture Committee
The Organizational Culture Committee is a standing
committee chaired by the President and Representative
Director that meets periodically or as necessary at thedirection of the President and Representative Director andexamines important organizational culture-related issues anddetermines important official commendations andpunishments.
The Organizational Culture Committee also deliberates onmatters related to compliance with and the administration of
the SECOM Group Code of Employee Conduct that havebeen reported to the President and Representative Director
by the Internal Audit and Compliance Department or the
executive officer in charge. If necessary, the committee
examines proposals for modifying the system foradministering compliance or amending the SECOM Group
Code of Employee Conduct. All such proposals must be
deliberated by the Organizational Culture Committee,
reviewed by Audit & Supervisory Board members andapproved by the Board of Directors.

Global compliance training
We have translated SECOM’s Philosophy and the SECOM
Group Code of Employee Conduct, which outlines the basic
concept and specific standards for employee behavior, into
multiple different languages and work to advance awareness

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SECOM REPORT 2022

across the global SECOM Group. We also provide training to
the senior management of overseas Group companies on key
aspects of compliance, including observance of laws andregulations, the prevention of bribery, and internal controls.

Core theme 3

Information and data security

Promotion of information security through the establishment of the SECOM Group Information Security Basic
Policy and creating and operating a robust information security system
Policy and system for promoting information security
With the rapid spread of IT, information security risks haverisen significantly, as can be seen from the increasing
sophistication of cyber attacks. Any leaks of personal or
confidential information entrusted to us by a customer has
the potential to seriously hinder our ability to provide security
services, damage or adversely impact the customer, andresult in the forfeiture of our brand image and reputation for
reliability. Accordingly, we have created and maintain a robust
information security system.
We have also established the SECOM Group Information
Security Basic Policy, to guide our efforts to promote stringent

information security. When we outsource work, we enter into
appropriate contracts and provide guidance and supervision
to subcontractors. We have put an executive officer in chargeof information security for the Group as a whole. In addition,
executive officers in charge of each business have been maderesponsible for information security–related matters for their
particular business, as well as for collaborating with theexecutive officer in charge of information security to report on
issues and presenting proposals to the President andRepresentative Director.

Reducing information security risk
We have implemented powerful security measures to reducerisks associated with information leaks and cyber attacks. We
also work to ensure that all employees of the SECOM Group,
regardless of employment format, comply fully with our
information security rules, which include rules governing theuse of personal computers and cellular telephones that must
be protected for confidentiality reasons, the storage andcarrying of information, and steps to be taken when an
information security–related incident arises, or a violation of
any other information security rule is discovered. Information

system controls and audits are the responsibility of subsidiary
Secom Trust Systems and are conducted in accordance withJapan’s Information Security Management System (ISMS)
standards under the guidance of the executive officer incharge of information security. As well as conducting regularassessments of vulnerability to external cyber attack risks, wemonitor information systems around the clock to ensure weare prepared to respond to risks, including those related tolarge-scale disasters and cyber attacks.

Protecting personal information
The SECOM Group Code of Employee Conduct states that all
information obtained in the course of business is confidential
and must not be leaked, a stipulation with which all executives
and employees must strictly comply. We strive to prevent
leakage, loss, and damage through employee training andefforts to promote awareness regarding the treatment of
personal information, as well as by ensuring stringent
management.
All employees are required to participate in e-learning
programs and tests annually to confirm understanding of andadherence to basic procedures and rules. The internal audit
departments conduct periodic inspections of the handling of
personal information, data management, and access control
at each SECOM Group site. In addition, we have established acontact point for queries regarding the handling of personal

information and for complaints and consultations regarding
our system for managing and protecting personal information,
facilitating swift and appropriate responses. The parent
company and Secom Trust Systems have earned certification
under Japan’s Privacy Mark, which is granted to organizations
that take appropriate measures to protect personal information.
Thorough information security(Year ended March 31, 2022)

Annual e-learning and testing to confirm understanding andadherence (participation: 100% of employees)
Voluntary audits (implementation:
100% of sites)
No leaks of information*Scope of reporting: SECOM CO., LTD.

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57

ESG Initiatives

Environmental initiatives:
Creating a foundation for delivering safe and comfortable lifestyles

Core theme 1

Environmental management

Evaluation and management of the progress of environmental conservation initiatives against environmental
key management indicators and response to the recommendations of the TCFD
We have established a common Group environmental
philosophy and basic environmental policy, in line with which
we conduct our operations in a manner that takes
environmental conservation into account. We evaluate andmanage the SECOM Group’s progress in promoting these
initiatives against seven major environmental management
indicators.
Environmental management key performance indicators
1. Greenhouse gas emissions (Scopes 1 and 2)
2. Greenhouse gas emissions across the supply chain(Scope 3)
3. Reduction of greenhouse gas emissions as againstbase 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 and percentage ofvehicles replaced by electric models
7. Resources with market value/recycled resources andindustrial waste
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 consumption ofpurchased electric power, cold and hot water, and steam)
Scope 3: Other indirect emissions (those not covered in Scope 1 or 2, fromthe activities of other companies up and down the supply chain

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SECOM REPORT 2022

Response to the recommendations of the TCFD
In July 2019, we declared our support for the TCFD. To
maintain services and systems in our security services andother businesses, we have established a Risk Committee andassess risks from multiple perspectives, including scope of
impact, scale, anticipated monetary cost of damage, urgency,
and frequency of occurrence, based on the results ofCompanywide risk analysis.
We recognize a variety of risks and opportunities related
to climate change. We acknowledge that risks pertaining tofluctuations in the price of fuel consumed by vehicles usedin our security services business and the introduction of acarbon tax, as well as to the impact of climate change on our
nonlife insurance and data center services businesses, will
increase. At the same time, we also understand that shifting
customer needs will yield opportunities to expand demand
for new services. Accordingly, we will promote strategies
that seek to capitalize on opportunities while remaining
mindful of the potential impact of risks on our operations.

Core theme 2

Prevention of global warming

Setting a medium- to long-term target for achieving carbon neutrality by 2045
In response to the accelerating global move toward
decarbonization, in May 2021 we set new greenhouse gas
emissions reduction targets. These targets have beencertified under the SBTi, which seeks to drive climate actionin the private sector. We have also joined RE100, a global
initiative, with the objective of transitioning fully to electricity
generated using renewable energy for our operations
by 2045.

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

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

Base year

180,000

188,435

5.9% reduction
184,031

178,668

177,292

160,000
140,000

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

120,000
100,000

103,639

Target for 2045:
080,000

2019

2020

2021

2022

2031

2045

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

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

Decarbonization initiatives by At Tokyo
Data center services company At Tokyo promotes a variety of active measures to help address global warming. In
October 2022, the company plans to introduce a green power optional service, which will provide the environmental
value originating from using renewable energy sources to power its data centers to its customers. At Tokyo will continue
to accelerate its efforts to advance decarbonization in the years ahead.

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59

ESG Initiatives

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

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

Code
SV-PS-230a.1

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

Data Security

Workforce Diversity &Engagement

Professional Integrity

Topic

Accounting Metric

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:

14,485(2) temporary(2) Temporary employees:

1,273(3) contract(3) Contract employees:

1,794

Employee hours worked, percentage
billable

Employee hours worked:

29,805,459

Percentage billable:

N/A*Data for “Activity metrics” is for SECOM CO., LTD., and is as of March 31, 2022, or for the fiscal year ended March 31, 2022. Because billing for electronic security
services, our principal business, is based on fixed monthly fees, “percentage billable” is not applicable.

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SECOM REPORT 2022

Financial Information and References

Financial Review

Operating Results
Overview
In the fiscal year ended March 31, 2022, SECOM CO., LTD. and its
consolidated subsidiaries (collectively, “the Company”) sought toprovide high-quality services and products that respond to thediverse 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 other services segments.
Consolidated net sales and operating revenue for the period
under review amounted to ¥1,166.1 billion, rising 2.7%, or ¥30.8
billion, while operating income advanced 15.2%, or ¥20.6 billion,to ¥156.4 billion. This primarily reflected higher net sales andoperating revenue, and operating income, in the security
services segment, which were underpinned by increases forelectronic security services in Japan and overseas, and forstatic security guard services, as well as in the fire protection
services segment, which benefited from a concentration of
profitable projects during the period, and the medical services
segment, which was bolstered by improvements in the earningsof partner hospitals in Japan and a general hospital in India. Net
income attributable to SECOM CO., LTD., climbed 19.8%, or ¥17.8
billion, to ¥107.7 billion.
Net Sales and Operating Revenue
Consolidated net sales and operating revenue rose 2.7%, or¥30.8 billion, to ¥1,166.1 billion, owing to increases in all
segments except insurance services. (For further information,please see Segment Information below.)
Costs and Expenses
Total costs and expenses were up 1.0%, or ¥10.2 billion, to¥1,009.7 billion. Cost of sales, at ¥802.4 billion, increased 1.5%,
or ¥12.2 billion, and accounted for 68.8% of net sales andoperating revenue, compared with 69.6% in the preceding
period. Factors contributing to the cost of sales ratio included
improvements in the earnings of partner hospitals in Japan anda general hospital in India, which lowered the cost of sales ratio
in the medical services segment, as well as to a concentrationof profitable projects in the fire protection services segment.
Selling, general and administrative (SG&A) expenses
increased 1.2%, or ¥2.5 billion, to ¥204.2 billion, equivalent to17.5% of net sales and operating revenue, an improvement from
17.8% in the previous fiscal year. While the impairment loss on
goodwill improved to ¥268 million, down ¥5.4 billion, loss on
sales and disposal of fixed assets, net, rose ¥918 million, to¥2.7 billion.
Operating Income
Operating income advanced 15.2%, or ¥20.6 billion, to ¥156.4
billion, owing mainly to increases in the security services, fire
protection services and medical services segments. The

operating margin improved to 13.4%, from 12.0%. (For further
information, please see Segment Information below.)
Other Income and Expenses
Other income declined ¥2.5 billion, to ¥9.7 billion, while otherexpenses increased ¥1.5 billion, to ¥4.4 billion. Net other income
thus amounted to ¥5.3 billion, a decrease of ¥4.0 billion. Thiswas due largely to a loss on other-than-temporary impairmentof investment securities of ¥848 million, compared with a gainon other-than-temporary impairment of investment securitiesof ¥4.6 billion in the previous fiscal year. The Company also
reported a ¥3.1 billion gain on private equity investments,
compared with a ¥302 million loss on private equity investmentsin the preceding period.
Income Taxes
Income taxes amounted to ¥49.2 billion, up ¥1.6 billion, although
this was equivalent to 30.4% of income from continuing
operations before income taxes and equity in net income ofaffiliated companies, down from 32.8% in the previous fiscal
year. Factors contributing to the decrease in income taxes as apercentage of income from continuing operations before income
taxes and equity in net income of affiliated companies included
the decline in impairment loss on goodwill.
Net Income Attributable to Noncontrolling Interests
Net income attributable to noncontrolling interests slipped ¥149
million, to ¥11.4 billion. This was due mainly to the fact that
Secom Joshinetsu Co., Ltd., was made a wholly owned
subsidiary, although the impact of this was partially offset byincreases in operating income in the fire protection services
segment and posted by overseas Group companies.
Net Income Attributable to SECOM CO., LTD.
Net income attributable to SECOM CO., LTD., climbed 19.8%, or¥17.8 billion, to ¥107.7 billion, equivalent to 9.2% of net sales
and operating revenue, rising from 7.9% in the previous fiscal
year. Net income attributable to SECOM CO., LTD., per share was¥492.83, up from ¥411.95. The figure of ¥175.00 for cash
dividends per share that appears in the consolidated financial
statements represents cash dividends approved and paid toshareholders during the period under review, namely, an ¥85.00
per share year-end dividend for the fiscal year ended March 31,
2021, approved at the Ordinary General Meeting of Shareholders
held on June 25, 2021, and a ¥90.00 per share interim dividend
determined by the Board of Directors and paid to shareholdersof record as of September 30, 2021. The year-end cash dividend
for the fiscal year ended March 31, 2022, approved at theOrdinary General Meeting of Shareholders held on June 28,2022, was also ¥90.00 per share.

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61

Financial Information and References/Financial Review

Segment Information
In December 2020, all issued shares of Secom Home Life Co.,
Ltd., previously a consolidated subsidiary, were transferred to athird party, as a result of which the company was excluded fromthe scope of consolidation. As a consequence, the name of thesegment to which the company was allocated, real estate andother services, was renamed “other services.” This change did
not prompt any adjustments to segment classification.
Subsequently, a review of segment classification was conductedfrom the perspective of similarity and relevance of businessactivities. As a result, certain services previously included in the
security services segment were reclassified to the BPO and ICT
services and the other services segments. Segment results
figures for prior periods have been restated to conform with the
new classification. (For further information, please see Note 28.)
Security Services
Security services include electronic security services, whichcenter on on-line security systems, other security services, andmerchandise and other. In the fiscal year ended March 31, 2022,
net sales and operating revenue in this segment increased 1.5%,
or ¥8.6 billion, to ¥566.7 billion. Excluding intersegment
transactions, segment net sales and operating revenue were¥563.6 billion, representing 48.3% of overall net sales andoperating revenue, down from 48.9% 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 to a
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 generally five
years, with contracts renewed automatically each subsequentyear. 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 approach

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SECOM REPORT 2022

leverages the Company’s half-century-plus of experience andknow-how in providing electronic security services, together
with its R&D team’s ability to recognize and address false
alarms, to ensure highly efficient operations.
Net sales and operating revenue from electronic security
services advanced 1.1%, or ¥3.9 billion, to ¥348.7 billion. This
primarily reflected firm sales of on-line commercial andhome security systems in Japan and increases in sales byoverseas Group companies, as well as the impact of currency
exchange rates.
Other security services include static guard and armored car
services. Net sales and operating revenue generated by static
guard services, which are provided by highly trained
professional security guards for systems requiring humanjudgment and flexible responsiveness, rose 8.8%, or ¥6.1 billion,to ¥75.5 billion, owing mainly to the Company’s provision of
security services for competition venues and other facilities for
the Olympic and Paralympic Games Tokyo 2020, held during theperiod under review. Net sales and operating revenue generated
by armored car services, which involve the transport of cash,
securities and other valuables using specially fitted armoredcars and security professionals, edged down 0.6%, or ¥374
million, to ¥62.5 billion, due principally to changes in theoperations 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 freestanding or
linked to on-line security systems. Net sales and operating
revenue in this category declined 1.3%, or ¥1.0 billion, to ¥76.9
billion, as COVID-19 prompted customers to curb investments,
negatively impacting turnover.
Operating income in this segment rose 12.2%, or ¥12.3
billion, to ¥113.4 billion, while the operating margin improved to
20.0%, compared with 18.1% in the preceding period. Principal
factors behind this result included a decrease in impairment
loss on goodwill, to ¥63 million, from ¥5.7 billion, and anincrease in sales of high-margin electronic security services.
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, at ¥152.1
billion, advanced 5.7%, or ¥8.2 billion. Principal factors behind
this result included an increase in Nohmi Bosai’s revenue fromfire alarm systems. Operating income rose 10.9%, or ¥1.4 billion,to ¥14.5 billion, reflecting a concentration of profitable projects
during the period. The operating margin was 9.5%, up from 9.1%.
Medical Services
Medical services include the provision of home nursing services,
pharmaceutical dispensing services, support for affiliatedmedical institutions in Japan, sales of medical equipment, theoperation of a general hospital in India, the operation ofresidences for seniors and other personal care services, healthand preventative care services, and ICT-based medical services,which include electronic medical report systems. Additionally,
this segment 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 rose 7.3%, or¥13.3 billion, to ¥196.1 billion, while operating income soared
246.3%, or ¥9.7 billion, to ¥13.6 billion. These increases were
attributable to improvements in the results of partner hospitals
in Japan and a general hospital in India. The operating marginclimbed to 7.0%, from 2.2%.
Insurance Services
The insurance services segment continued to expand sales of an
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), the
MEDCOM unrestricted cancer treatment policy, which covers theentire cost of medical treatment for cancer, 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.
Net sales and operating revenue in this segment declined
10.5%, or ¥6.5 billion, to ¥54.9 billion, despite brisk sales of
MEDCOM, owing to net realized investment losses (including
losses on other-than-temporary impairments of investment
securities) of ¥1.2 billion, compared with net realized investment
gains of ¥7.7 billion in the preceding period. Segment operating
income, at ¥8.5 billion, was down 8.2%, or ¥762 million, primarilyreflecting the aforementioned net realized investment losses,
although this factor was partially offset by a decrease in losses
due to natural disasters.

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 theprivate sector in Japan. These services are also offered togovernment agencies overseas. Segment net sales andoperating revenue advanced 4.5%, or ¥2.5 billion, to ¥56.6
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, at¥3.9 billion was down 12.8%, or ¥569 million, a consequence
mainly of the inclusion of head office relocation expenses andrising personnel expenses resulting from an expanded numberof employees, as well as of a reversal of the provision for loss
on construction contracts for large-scale projects for overseas
customers in the previous period. The operating margin
declined to 6.8%, from 8.2%.
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 cloud-based
services, and BPO services, which include the operation ofcontact centers. Net sales and operating revenue in thissegment were up 2.4%, or ¥2.9 billion, to ¥124.8 billion, thanksprincipally to increased revenue in the BPO services business,underpinned by efforts to cultivate customers and higher orders
from existing customers, as well as in the data center services
business. Owing to higher net sales and operating revenue,
operating income edged up 0.5%, or ¥67 million, to ¥14.6 billion.
This was despite a negative rebound in the BPO services
business, which benefited in the previous period from thepresence of profitable projects, combined with upfront expenses
associated with the expansion of the contact center network toaccommodate growing demand, as well as higher utility costs
attributable to fuel cost adjustments at data centers. The
operating margin dipped to 11.7%, from 11.9%.
Other Services
The other services segment encompasses real estate leasing,as well as construction and installation services. Segment net
sales and operating revenue rose 4.3%, or ¥1.4 billion, to ¥35.4
billion, owing to a full year of lease income from real estate
projects completed in the previous fiscal year, as well as to anincrease in revenue from construction projects. Operating
income, at ¥6.1 billion, was up 1.2%, or ¥74 million, while theoperating margin was 17.3%, down from 17.8%.

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63

Financial Information and References/Financial Review

Financial Position
Total assets as of March 31, 2022, amounted to ¥2,183.5 billion,
an increase of ¥45.7 billion from the end of the previous fiscal
year. Total current assets climbed ¥47.2 billion, to ¥1,026.7
billion, and accounted for 47.0% of total assets. The current ratio
was 2.4 times, compared with 2.3 times a year earlier. The
principal component of current assets, cash and cash
equivalents, was ¥531.6 billion, up ¥29.4 billion. (For further
information, please see Cash Flows, which follows this section.)
Notes and accounts receivable, trade rose ¥12.0 billion, to¥165.4 billion, reflecting such factors as higher net sales andoperating revenue in the fire protection services segment. Notes
and accounts receivable, trade, are affected by the fact that net
sales and operating revenue in the fire protection services andgeospatial information services businesses tends to beconcentrated toward the end of the fiscal year. Cash deposits forarmored car services declined ¥2.4 billion, to ¥136.5 billion.
These cash deposits are funded largely through bank overdrafts
and deposits and their use by the Company is restricted.
Inventories rose ¥6.4 billion, to ¥38.2 billion, owing primarily tothe purchase of real estate for sales and steps taken to increase
inventories of components for fire protection services–related
products to circumvent procurement difficulties.
Investments and long-term receivables, at ¥349.5 billion,
were up ¥1.9 billion, and represented 16.0% of total assets.

Property, plant and equipment, less accumulated depreciation,amounted to ¥424.8 billion, down ¥4.3 billion, accounting for19.5% of total assets. Other assets rose ¥837 million, to ¥382.4
billion, equivalent to 17.5% of total assets.
Total liabilities as of March 31, 2022, amounted to ¥838.5
billion, a decrease of ¥8.1 billion from a year earlier, andrepresented 38.4% of total liabilities and equity. Total current
liabilities, at ¥419.2 billion, were down ¥837 million, andaccounted for 19.2% of total liabilities and equity. Total longterm liabilities declined ¥7.3 billion, to ¥419.4 billion, equivalent
to 19.2% of total liabilities and equity.
Total SECOM CO., LTD. shareholders’ equity advanced ¥67.2
billion, to ¥1,209.5 billion. Retained earnings increased ¥69.4
billion, to ¥1,139.9 billion, with contributing factors including net
income attributable to SECOM CO., LTD., and the payment ofdividends. Additional paid-in capital decreased ¥11.6 billion, to¥63.0 billion, owing mainly to the acquisition of the ownershipinterests of Secom Joshinetsu via a tender offer, undertakenwith the aim of making it a wholly owned subsidiary. Owing toyen depreciation, foreign currency translation adjustments werea positive ¥2.9 billion, compared with a negative ¥8.1 billion asof the end of the preceding period. The equity ratio was 55.4%,
up from 53.4% at the previous fiscal year-end.

Percentage of Consolidated
Net Sales and Operating Revenue*

SECOM CO., LTD.
Shareholders’ Equity per ShareTotal Assets(Year ended March 31, 2022)(In yen)(In billions of yen)

6,000

2,500

9.9%

3.0%

4.8%
4.4%

5,000

2,000

48.3%
16.8%

4,000
1,500

12.8%
3,000

1,000
Security Services
Medical Services
Geospatial Information
Services
Other Services

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

64

SECOM REPORT 2022

2,000
500

1,000

0

0
2018 2019 2020 2021 2022

2018 2019 2020 2021 2022

Cash Flows
The Company is committed to maintaining sufficient liquidity toallow 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, 2022, net cash provided byoperating activities amounted to ¥185.3 billion. The principal
components of this were net income of ¥119.2 billion, anddepreciation and amortization, including amortization ofdeferred charges—a non-cash item—of ¥78.5 billion. Net cash
provided by operating activities was down ¥3.4 billion from thefiscal year ended March 31, 2021, despite an increase in net
income of ¥17.7 billion, as a ¥10.5 billion increase in receivables
and due from subscribers, net of allowances, compared with adecrease of ¥14.3 billion in the preceding period, pushed down
cash generated by operating activities.
Net cash used in investing activities was ¥60.4 billion. The
principal applications of cash included payments for purchasesof property, plant and equipment of ¥55.1 billion, used primarily
for purchases of equipment necessitated by rising subscriptions
for security services, and payments for purchases of intangible
assets of ¥10.8 billion. Net cash used in investing activities wasup ¥7.4 billion from the previous fiscal year, owing principally tothe absence of ¥14.6 billion in proceeds from the sales ofsubsidiaries, net of cash and cash equivalents disposed of, and¥7.1 billion in acquisitions, net of cash acquired, which had asignificant impact in the preceding period. Investments in theinsurance services segment and private equity investments in
the United States yielded higher net proceeds from sales andredemptions of investment securities of ¥1.6 billion, up from
¥1.1 billion.
Net cash used in financing activities amounted to ¥97.3
billion. This largely reflected dividends paid to SECOM CO., LTD.
shareholders of ¥38.2 billion; payments for acquisition of sharesof consolidated subsidiaries from noncontrolling interest
holders of ¥28.6 billion, related mainly to the acquisition of theownership interests of Secom Joshinetsu; and an increase intreasury stock, net, of ¥11.2 billion, owing to the purchase oftreasury stock on the open market in accordance with aresolution of the Board of Directors. Net cash used in financing
activities was up ¥49.6 billion from the preceding period, aconsequence primarily of increases in payments for acquisitionof shares of consolidated subsidiaries from noncontrollinginterest holders and purchases of treasury stock and a decline
in proceeds from long-term debt.
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 ¥531.6 billion, up ¥29.4 billion fromcash equivalents at beginning of year of ¥502.2 billion.

Depreciation and Amortization

Purchases of Property, Plant andEquipment and Intangible Assets

Cash Flows(In billions of yen)

(In billions of yen)

(In billions of yen)
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities

100

80

75

60

200
150
100

50

40

25

20

50
0
-50

0

-100

0
2018 2019 2020 2021 2022

2018 2019 2020 2021 2022

2020

2021

2022

SECOM REPORT 2022

65

Financial Information and References

Consolidated Financial Statements
Consolidated Balance Sheets
SECOM CO., LTD. and Subsidiaries
March 31, 2022 and 2021

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 ..............................................................................................

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............................................................................................................................

66

SECOM REPORT 2022

In millions of yen

Translation into
thousands of
U.S. dollars

March 31

March 31

2022

2021

2022

¥ 531,555
8,972
136,478
26,528
165,415
61,30038,171
7,973
26,192(2,077)3,554
22,597
1,026,658¥ 502,201
9,587
138,890
21,220
153,41061,47931,784
7,887
27,666(1,708)2,640
24,375
979,431$ 4,357,008
73,541
1,118,672
217,443
1,355,861
502,459
312,877
65,352
214,689(17,025)
29,131
185,222
8,415,230

215,01271,66334,984
20,69911,380(4,201)
349,537

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

1,762,393
587,402286,754
169,664
93,279(34,434)
2,865,058

121,890388,254
365,350
163,887
9,773
1,049,154(624,313)
424,841

120,613377,361355,945
160,139
10,166
1,024,224(595,115)
429,109

999,098
3,182,410
2,994,672
1,343,336
80,1078,599,623(5,117,320)
3,482,303

137,412
13,174
109,653
58,67647,852
15,663
382,430¥2,183,466

140,500
13,905
109,946
58,37639,532
19,334
381,593¥2,137,806

1,126,328
107,984
898,795
480,951
392,230
128,385
3,134,673$17,897,264

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

2021

2022

2022

¥

31,814
15,121
46,03844,669124,001
38,25926,665
41,526
20,45030,622
419,165¥

33,852
15,45744,26543,679123,808
37,93823,56041,11920,44835,876420,002$260,770
123,943
377,361
366,139
1,016,402
313,598
218,566
340,377
167,623251,001
3,435,780

51,84423,23830,244
16,545133,014
16,966
14,277
116,962
16,262
419,352
838,51753,492
23,34629,868
17,944133,118
19,82913,470120,052
15,542426,661
846,663

424,951
190,475
247,902135,615
1,090,279
139,066
117,025
958,705
133,295
3,437,313
6,873,093

66,41963,014
10,972
1,139,866

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

544,418
516,508
89,934
9,343,164

2,424
3,325
2,929
8,678

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

19,86927,25424,00871,131(79,437)
1,209,512
135,437
1,344,949¥2,183,466(73,785)
1,142,323
148,820
1,291,143¥2,137,806(651,123)
9,914,032
1,110,139
11,024,171$17,897,264

Commitments and contingent liabilities
Equity:SECOM CO., LTD. shareholders' equity:
Common stock
Authorized—900,000,000 shares, issued 233,298,049 shares in 2022
Authorized—900,000,000 shares, issued 233,295,926 shares in 2021....................
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:
15,215,218 shares in 2022 and 15,034,565 shares in 2021 ........................................
Total SECOM CO., LTD. shareholders' equity.....................................................................
Noncontrolling interests...................................................................................................................
Total equity ............................................................................................................................
Total liabilities and equity.................................................................................................

SECOM REPORT 2022

67

Financial Information and References/Consolidated Financial Statements

Consolidated Statements of Income
SECOM CO., LTD. and Subsidiaries
Three years ended March 31, 2022

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 of affiliated 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

2022

2021

2020

2022

¥1,166,098¥1,135,339¥1,132,632$9,558,180

802,443
204,190
113
268
2,682
1,009,696
156,402790,288
201,723
95
5,660
1,764
999,530
135,809795,318
203,223
952
758
2,754
1,003,005
129,627

6,577,402
1,673,689
926
2,197
21,984
8,276,198
1,281,982

1,784
334
—
3,072
4,480
9,670

1,880
—
4,594
—
5,647
12,121

1,961
2,297
—
—
5,545
9,803

14,623
2,738—
25,18036,722
79,263

1,165
—
848
—
2,370
4,383

1,168
121
—
302
1,254
2,845

1,120
—
3,738
139
1,477
6,474

9,549
—
6,951
—
19,42735,927

161,689

145,085

132,956

1,325,318

46,7382,426
49,16443,743
3,855
47,59845,546(4,711)
40,835

383,098
19,885402,983

112,525
6,639
119,164—
119,164(11,433)¥ 107,731

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

92,121
6,654
98,775975
99,750(12,614)
87,136922,335
54,418976,753—
976,753(93,713)$ 883,040

In yenTranslation into
U.S. dollars

Years ended
March 31

Year ended
March 31

¥

2022

2021

2020

2022

¥492.83—
492.83¥175.00¥423.73(11.78)411.95¥170.00¥394.76
4.47
399.23¥170.00

$4.04
—
4.04
$1.43

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, 2022

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. .............................................

68

SECOM REPORT 2022

2022

2021

2020

2022

¥119,164¥101,495¥99,750$ 976,753

(142)
3,976
11,678
134,676(12,055)¥122,621

519
4,462(3,975)102,501(11,739)¥ 90,762(263)(4,037)(2,934)92,516(12,364)¥80,152(1,164)32,59095,721
1,103,900(98,811)$1,005,089

Consolidated Statements of Changes in Equity
SECOM CO., LTD. and Subsidiaries
Three years ended March 31, 2022
In millions of yen
Number ofsharesissuedBalance, 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.....................................................................................
—
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 interests—and other.....................................................................................
Gains on disposal of treasury stock......................................
—Net changes in treasury stock ................................................
—
Balance, March 31, 2021 ......................................................... 233,295,926
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.............................................................
2,123
Cash dividends paid to SECOM CO., LTD. shareholders...
—
Cash dividends paid to noncontrolling interests ...............
—
Transfer to legal reserve ..........................................................
—
Equity transactions with noncontrolling interestsand other.....................................................................................
—
Gains on disposal of treasury stock......................................
—Net changes in treasury stock ................................................
—
Balance, March 31, 2022 ......................................................... 233,298,049

Commonstock

Additional
paid-in
capitalLegalreserve

Retainedearnings¥66,393¥73,166¥10,783¥ 967,679

—

—

—

—
—
—

—
—
—

8
—
—
—

Accumulated
other comprehensive
income (loss)

Total
SECOM CO., LTD.
shareholders’ Noncontrolling
equityinterests

Total

78)

(¥73,759)¥1,044,184¥131,718¥1,175,902

87,136——

87,136

12,61499,750

—
—
—

—
—
—

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

—
—
—

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)————66,4011,506
0—74,680———10,833———
1,017,661———(7,061)—0(17)(73,776)

1,506
0
(17)
1,088,738(1,975)——
138,669

(469)
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)————
66,410(82)——
74,607———
10,884———
1,070,419———(6,212)——(9)(73,785)

(82)
—
(9)
1,142,323

935——
148,820853—(9)1,291,143———

107,731——

107,731

11,433

119,164

—
—
—

—
—
—

—
—
—

—
—
—

(142)
3,983
11,049

—
—
—

9
—
—
—

9
—
—
—

—
—
—
88

—
(38,196)
—
(88)

—
—
—
—

—
—
—
—

(142)
3,983
11,049122,621
18(38,196)
—
—

—
(7)
629
12,055——(2,965)
—

(142)
3,976
11,678
134,676
18(38,196)(2,965)—(11,602)—0———¥63,014 ¥10,972———¥1,139,866———¥ 8,678—
0(5,652)(¥79,437)(11,602)0(5,652)¥1,209,512

Commonstock intreasury,
at cost———¥66,419(¥

Commonstock intreasury,
at cost(22,473)(34,075)—
0—(5,652)¥135,437 ¥1,344,949

Translation into thousands of U.S. dollars

Commonstock

Balance, March 31, 2021 ...................................................................................... $544,344
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..........................................................................................
74
Cash dividends paid to SECOM CO., LTD. shareholders................................
—Cash dividends paid to noncontrolling interests ............................................
—
Transfer to legal reserve .......................................................................................
—
Equity transactions with noncontrolling interestsand other..................................................................................................................
—
Gains on disposal of treasury stock...................................................................
—Net changes in treasury stock .............................................................................
—
Balance, March 31, 2022 ...................................................................................... $544,418

Additional
paid-in
capitalLegalreserve

Retainedearnings

Accumulated
other comprehensive
income (loss)

Total
SECOM CO., LTD.
shareholders’ Noncontrolling
equityinterests$611,533$89,213$8,773,926($50,918)($604,795)$9,363,303——

883,040——

883,040

93,713

976,753

—
—
—

—
—
—

—
—
—

(1,164)32,64790,566

—
—
—

74
—
—
—

—
—
—
721

—
(313,081)
—
(721)

—
—
—
—

—
—
—
—

(1,164)32,64790,566
1,005,089
148(313,081)
—
—

—
(57)
5,155
98,811——(24,303)—(1,164)32,59095,721
1,103,900
148(313,081)(24,303)—(95,099)—0———$516,508 $89,934———$9,343,164———$71,131—0(46,328)($651,123)(95,099)
0(46,328)$9,914,032

Total$1,219,836 $10,583,139(184,205)(279,304)—
0—(46,328)$1,110,139 $11,024,171

SECOM REPORT 2022

69

Financial Information and References/Consolidated Financial Statements

Consolidated Statements of Cash Flows
SECOM CO., LTD. and Subsidiaries
Three years ended March 31, 2022

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 (decrease) 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 ...................................................................................................
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......................................................................................

70

SECOM REPORT 2022

In millions of yen

Translation into
thousands of
U.S. dollars

Years ended
March 31

Year ended
March 31

2022

2021

2020

2022

¥119,164¥101,495¥ 99,750$ 976,753

78,507(2,659)
2,426
2,682
113
—
(3,072)
268
(709)
2,373
(6,639)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)

643,500(21,795)
19,88521,984926—(25,180)
2,197(5,811)
19,451(54,418)

2,412

2,016

1,430

19,770(10,450)(5,415)(8,015)
2,986
163(1,391)
4,022
(210)
(103)
(4,121)
12,961
185,293

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(85,656)(44,385)(65,697)
24,475
1,336(11,402)32,967(1,721)(844)(33,779)
106,239
1,518,795

738
3,602
(55,075)(10,778)
33,243(31,683)
—
(3)
—
57
(703)
1,975
(1,734)(60,361)(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)

6,049
29,525(451,434)(88,344)
272,484(259,697)
—
(25)
—
467
(5,762)
16,189(14,214)(494,762)

5,349(16,953)(1,903)(2,863)(38,196)(2,965)

16,699(18,752)(4,500)(1,687)(37,104)(2,600)8,802(18,793)162(2,099)(37,104)(3,425)43,844(138,959)(15,598)(23,467)(313,081)(24,303)(28,573)(11,241)72(97,273)
1,695
29,354502,201¥531,555

(241)
(9)
478
(47,716)(525)
87,533414,668¥502,201

(659)
(16)
190
(52,942)93
64,938349,730¥414,668(234,205)(92,139)588(797,320)
13,893
240,606
4,116,402$4,357,008

Segment Information
Information by business and geographic segments for the years ended and as of March 31, 2022, 2021 and 2020 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 ..................................................................

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 ........................................................................................................................
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

2022

2021

2020

2022

¥ 563,623
3,093
566,716
148,804
3,302
152,106
195,826
236
196,062
51,7693,151
54,92056,371
194
56,565
115,544
9,212
124,756
34,161
1,235
35,396
1,186,521(20,423)¥1,166,098¥ 555,060
3,064
558,124
140,599
3,275
143,874
182,573
206
182,779
58,291
3,084
61,37553,908204
54,112
112,144
9,709
121,853
32,764
1,187
33,951
1,156,068(20,729)¥1,135,339¥ 561,067
3,370
564,437
151,861
4,050
155,911
187,101
220
187,32143,515
3,413
46,92853,535201
53,736
99,833
13,321
113,154
35,7201,363
37,083
1,158,570(25,938)¥1,132,632$4,619,861
25,352
4,645,213
1,219,705
27,066
1,246,771
1,605,131
1,934
1,607,065
424,336
25,828450,164
462,057
1,590
463,647
947,082
75,5081,022,590
280,008
10,123
290,1319,725,581(167,401)$9,558,180

In millions of yen

In thousands of
U.S. dollars

Years ended
March 31

Year ended
March 31

2022

2021

2020

2022

¥113,380
14,516
13,636
8,547
3,874
14,562
6,120
174,635(18,233)¥156,402
9,670(4,383)¥161,689¥101,096
13,091
3,938
9,309
4,443
14,495
6,046
152,418(16,609)¥135,809
12,121(2,845)¥145,085¥106,850
17,817
6,232(4,319)3,030
11,474
6,282
147,366(17,739)¥129,627
9,803(6,474)¥132,956$ 929,344
118,984
111,770
70,05731,754
119,361
50,164
1,431,434(149,452)$1,281,982
79,263(35,927)$1,325,318

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 .......................................................................................................................................................
Other services ....................................................................................................................................................................
Total .......................................................................................................................................................................................
Corporate items .................................................................................................................................................................
Investments in affiliated companies ...........................................................................................................................
Total assets ....................................................................................................................................................................

March 31

March 31

2022

2021

2022

¥ 916,912
190,544
203,299
247,258
77,954
241,694
121,195
1,998,856
112,948
71,662¥2,183,466¥ 905,667
180,083
202,191
242,071
72,703
246,586
118,314
1,967,615
103,059
67,132¥2,137,806$ 7,515,672
1,561,836
1,666,385
2,026,705
638,967
1,981,098
993,402
16,384,065
925,803587,396$17,897,264

SECOM REPORT 2022

71

Financial Information and References/Consolidated Financial Statements

Segment Information

In millions of yen

In thousands of
U.S. dollars

Years ended
March 31

Year ended
March 31

2022

2021

2020

2022

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

¥51,573
2,836
8,055
2,509
1,751
9,751
1,158
77,633
874¥78,507¥51,645
2,662
8,496
2,556
1,665
9,816
1,008
77,848
868¥78,716¥50,045
2,537
8,321
2,290
1,700
10,822
1,002
76,717857¥77,574$422,729
23,24666,025
20,566
14,352
79,926
9,492
636,336
7,164$643,500

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

¥44,059
5,176
4,018
2,770
2,608
7,871
4,182
70,684584¥71,268¥44,276
5,249
4,057
1,936
2,052
6,928
3,677
68,175486¥68,661¥44,672
2,569
8,778
4,440
2,987
13,034
2,239
78,7191,116¥79,835$361,139
42,42632,93422,705
21,37764,51634,279579,376
4,787$584,163

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

2022

2021

2020

2022

¥348,749¥344,882¥344,992$2,858,598

75,45962,46776,948¥563,623

69,37062,841
77,967¥555,060

70,05463,60282,419¥561,067

618,516
512,025
630,722$4,619,861(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,
2022, 2021 and 2020 and long-lived assets as of March 31, 2022 and 2021 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

2022

2021

2020

2022

¥1,117,929
48,169¥1,166,098¥1,091,216
44,123¥1,135,339¥1,083,446
49,186¥1,132,632$9,163,352
394,828$9,558,180

In millions of yen

In thousands of
U.S. dollars

Long-lived assets:
Japan .....................................................................................................................................................
Other ......................................................................................................................................................
Total ..................................................................................................................................................

March 31

March 31

2022

2021

2022

¥755,252
15,125¥770,377¥771,547
13,711¥785,258$6,190,590
123,975$6,314,565

There are no individually material countries other than Japan with respect to net sales and operating revenue and long-lived assets.

72

SECOM REPORT 2022

Financial Information and References

Other Financial Data
Summary of Selected Financial Data
SECOM CO., LTD. and Subsidiaries
Years ended/as of March 31
In millions of yen
2022

2021

2020

2019

2018

2017

Composition of consolidated net sales andoperating revenue by segment
Net sales and operating revenue ....................................................... ¥1,166,098 ¥1,135,339 ¥1,132,632 ¥1,087,355 ¥1,058,568 ¥1,004,094
563,623
555,060
561,067
548,271547,015
529,144
Security services: ..............................................................................
48.3%
48.9%
49.5%
50.4%
51.7%
52.7%
As a percentage of net sales and operating revenue ...
348,749
344,882
344,992
342,299
339,445
337,283
Electronic security services.......................................................
As a percentage of net sales and operating revenue ...
29.9
30.4
30.5
31.5
32.0
33.6
Other security services—75,45969,37070,054
66,28959,05456,438
Static guard services ..............................................................
6.5
6.1
6.2
6.1
5.6
5.6
As a percentage of net sales and operating revenue ...
Armored car services .............................................................
62,467
62,841
63,60262,41761,08957,873
5.4
5.5
5.6
5.7
5.8
5.8
As a percentage of net sales and operating revenue ...
137,926
132,211
133,656
128,706
120,143
114,311
Subtotal .............................................................................
76,94877,967
82,41977,26687,42777,550
Merchandise and other ...............................................................
As a percentage of net sales and operating revenue ...
6.6
6.9
7.2
7.1
8.3
7.7
148,804
140,599
151,861
140,139
136,559
126,232
Fire protection services ...................................................................
12.8
12.4
13.4
12.9
12.9
12.6
As a percentage of net sales and operating revenue ...
Medical services.................................................................................
195,826
182,573
187,101
181,705
175,318
168,819
16.8
16.1
16.5
16.7
16.6
16.8
As a percentage of net sales and operating revenue ...
Insurance services ............................................................................
51,76958,291
43,515
41,63744,683
43,780
4.4
5.1
3.8
3.8
4.2
4.4
As a percentage of net sales and operating revenue ...
Geospatial information services ...................................................
56,371
53,90853,53551,51050,906
51,609
4.8
4.7
4.7
4.7
4.8
5.1
As a percentage of net sales and operating revenue ...
BPO and ICT services ........................................................................
115,544
112,144
99,83390,22571,47551,255
9.9
9.9
8.8
8.2
6.7
5.1
As a percentage of net sales and operating revenue ...
Other services.....................................................................................
34,161
32,76435,72033,86832,61233,255
3.0
2.9
3.3
3.3
3.1
3.3
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. ................................. ¥ 107,731
Cash dividends paid(2) ............................................................................
38,196
SECOM CO., LTD. shareholders’ equity ............................................. 1,209,512
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)..........................................

¥

89,913 ¥ 87,136 ¥ 89,686 ¥ 96,623
37,104
37,10434,922
32,738
1,142,323
1,088,738
1,044,184
1,000,277¥ 91,387
30,557929,242

2.4
1.2
0.3
3.7
7.6
92.4
100.0

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

4.9
8.9

4.2
7.9

4.2
8.0

4.8
8.6

5.3
9.7

5.2
9.8

6.7
2.5

6.9
2.6

5.7
2.4

6.8
2.5

7.3
2.3

7.6
2.5

68.0
2.75
139.8

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

Note: Installation revenue is included in the corresponding electronic security services.

SECOM REPORT 2022

73

Financial Information and References/Other Financial Data

Summary of Selected Financial Data

2022

2021

2020

2019

2018

2017

Number of shares outstanding
Issued .............................................................................. 233,298,049
Owned by SECOM CO., LTD. ....................................... 15,215,218

233,295,926
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

Balance ........................................................................... 218,082,831

218,261,361

218,260,410

218,260,352

218,259,868

218,260,247¥ 492.83
175.00¥ 411.95
170.00¥ 399.23
170.00¥ 410.91
160.00¥ 442.70
150.00¥ 418.71
140.005,546.11
677.24
1.60
17.99
13.09
8,868

5,233.74
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

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

74

SECOM REPORT 2022

(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 ¥19,627 million(¥90 per share) were approved at the general shareholders’meeting on June 28, 2022.
(3) Per share amounts are based on the number of shares
outstanding at the end of each period, less treasury stock.

Common Stock Data
SECOM CO., LTD.
As of March 31

SHAREHOLDER INFORMATION
Number of shareholders ........................................
Common shares held by:
Financial institutions...........................................
Securities firms ....................................................
Other domestic corporations............................
Foreign investors .................................................
Individuals and others ........................................
Treasury stock ......................................................
Total .....................................................................

2022

2021

2020

2019

2018

2017

23,401

21,73923,29724,02326,80925,20039.13%
3.05
2.78
40.96
7.56
6.52
100.00%39.44%
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%

PRICE INFORMATION (TOKYO STOCK EXCHANGE)
2020
2021

2022

April–June ........................................................................................
July–September .............................................................................
October–December .......................................................................
January–March ..............................................................................
April–June ........................................................................................
July–September .............................................................................
October–December .......................................................................
January–March ..............................................................................

Price per share (in yen)
High
Low

¥ 9,700
10,33010,625
10,265
9,555
8,704
8,318
9,100

¥8,240
9,061
8,735
9,073
8,201
8,027
7,536
7,610

Nikkei Stock Average (in yen)
High
Low

¥23,178.10
23,559.30
27,568.15
30,467.75
30,089.25
30,670.10
29,794.37
29,332.16¥17,818.72
21,710.00
22,977.13
27,055.94
27,448.01
27,013.25
27,528.87
24,717.53

SECOM REPORT 2022

75

Financial Information and References/Other Financial Data

Common Stock Data

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
July 27, 2022

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
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
233,300

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
66,427,074

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
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.

76

SECOM REPORT 2022

Financial Information and References

Corporate Information(As of June 30, 2022)

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

100.0%
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, 2022)

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.

(Continued)

SECOM REPORT 2022

77

Financial Information and References/Corporate Information

MAJOR CONSOLIDATED SUBSIDIARIES
Issued capital(In millions of yen)Fire protection services
Nohmi Bosai 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 Hokkaido Service Center Co., Ltd.
Shell Beach Co., Ltd.
Consilium Nittan Marine Ltd.

10
10
42

(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)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.

Lines of business

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
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.

78

SECOM REPORT 2022

(As of June 30, 2022)(Continued)

MAJOR CONSOLIDATED SUBSIDIARIES
Issued capital(In millions of yen)

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.
Higashi-Nihon Sogo Keikaku Co., Ltd.
Satellite Image Marketing Corp.

8,758
50
40
15
200
60

71.6
(100.0)(52.6)(60.0)(100.0)(100.0)

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

Lines of business(As of June 30, 2022)

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)

SECOM REPORT 2022

79

Financial Information and References/Corporate Information

MAJOR CONSOLIDATED SUBSIDIARIES
Issued capital

Percentageof equity/
voting rights£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
Rmb7,000 thousand
Rmb15,000 thousand
HK$3,000 thousand
US$4,111 thousand
I.RPA3,200 million
I.RPA97,972 million
THB378,934 thousand
AUD21,172 thousand
AUD5,951 thousand
NZD1,604 thousand¥120 million
VND95,177 million
S$5,000 thousand
S$26,476 thousand
MYR850 thousand
TRY110,579 thousand
TRY266,661 thousand

100.0%(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
80.0(40.0)(99.9)
49.0
100.0(100.0)(100.0)100.0(80.0)
46.6
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

Other services
Shanghai Nohmi Secom Fire Protection Equipment Co., Ltd. US$14,300 thousand(100.0)Nohmi Taiwan Ltd.

NT$15,000 thousand(100.0)Nittan Europe Ltd.
Nittan Asean Co., Ltd. – Vietnam Headquarters
Anbao Corp.

£1,194 thousand
US$3,236 thousand
US$1,820 thousand(100.0)(100.0)(95.1)

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$654 thousand
S$66,587 thousand
INR3,926 million
INR15 million
PHP108,953 thousand
THB129,000 thousand
US$3,304 thousand(96.6)(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)

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

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.
Secom Smart (Singapore) Pte. Ltd.
Secom Smart (Malaysia) Sdn. Bhd.
Secom Aktif Guvenlik Yatirim A.S.
Secom Aktif Elektronik Güvenlik Cözümleri A.S.

Lines of businessNotes: 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.

80

SECOM REPORT 2022

(As of June 30, 2022)

Regarding Publication of SECOM Report 2022

Five years have passed since we launched the ANSHIN Platform service infrastructure, designed tohelp realize the SECOM Group’s Vision for 2030, through which we strive to provide services thatdeliver seamless peace of mind for anyone and everyone whenever and wherever necessary. In thattime, society has undergone fundamental changes brought about by a variety of factors, including
technological advances, a declining labor force and the COVID-19 pandemic. With safety and peaceof mind increasing essential concerns to today’s society, the role of this infrastructure is taking on
increasing importance.
At SECOM, we have always sought to create pioneering services that benefit society as a whole. This
report introduces some of our efforts to maximize corporate value, as well as to decisively nurture
pillars of future growth. We are also conscious of the importance of conveying how materiality, ESG,
and other initiatives aimed at helping ensure sustainability will also enhance our competitiveness.
We also work closely with relevant departments to create a report that reflects the views of the entire
SECOM Group.
Guidelines referenced in the preparation of this report include the Value Creation Foundation (VRF)’s
International Integrated Reporting Framework and the Guidance for Collaborative Value Creation, put
out by the Ministry of Economy, Trade and Industry (METI).
Looking ahead, we will continue to devote our best efforts to creating an effective communications
tool that helps promote constructive dialog with stakeholders. To this end, we would be grateful to hear
the frank opinions of all readers.

Tatsuro Fuse
Executive Director
Head of Corporate
Communication &Marketing Division

Framework for Communicating with Stakeholders
Financial information

Dialog• Financial results presentations• One-on-one/small group meetings with analysts/
institutional investors• Ordinary General Meeting of
Shareholders

Reports• Annual securities report*• Financial reports andpresentations• Shareholder newsletters*

Corporate
website• IR information• Financial data (U.S. GAAP)

Nonﬁnancial information• Stakeholder engagement• SECOM Report(integrated report)• Sustainability Report• ESG data
• SECOM SASB Report• Corporate governance report

Access sustainability-related information
https://www.secom.co.jp/english/sustainability/

Access IR information
https://www.secom.co.jp/english/ir/*The annual securities report and shareholder newsletters are published in Japanese only.

Scope of Reporting

Accounting Principles

In principle, this report provides information on SECOM CO., LTD., and its

Unless otherwise indicated, all financial data has been prepared inconsolidated subsidiaries, equity-method companies and variable interest

accordance with U.S. GAAP.

entities. (In instances where the scope differs, an explanation is provided.)Forward-Looking Statements
Reporting Period

This report contains forward-looking statements about future plans andThis report is for the fiscal year ended March 31, 2022. (Some data

strategies, as well as forecasts and expectations regarding SECOM’s

subsequent to that period is included.)

performance. Actual results may differ materially from these statements.

SECOM REPORT 2022

81

SECOM CO., LTD.
5-1, Jingumae 1-chome, Shibuya-ku, Tokyo 150-0001, Japanwww.secom.co.jp

Printed in Japan