SECOM—Social System Industry

HIGHLIGHTSSECOM CO., LTD. and Subsidiaries
Three years ended March 31, 2004

This table shows key financial highlights calculated using accounting principles generally accepted in the United States (U.S. GAAP).

U.S. GAAP

In millions of yenYears ended March 31

In thousandsof U.S. dollars
Year endedMarch 312004

2003

2002

2004

Revenue and other income................................................ ¥0,537,859
Net income ........................................................................
23,479Total assets........................................................................
1,165,105
Total shareholders’ equity..................................................
415,852¥0,520,743
30,275
1,158,082
372,518¥0,493,526
34,082
1,166,113
401,326$05,074,141
221,500
10,991,557
3,923,134

In yenIn U.S. dollars¥0,146.19
40.00
1,720.57$ 0.980.38
17.43

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

¥0,132.87
40.00
1,655.04¥0,104.32
40.00
1,847.80

Notes: 1. Yen amounts have been translated into U.S. dollars, solely for the convenience of the reader, at the rate of ¥106=US$1, the rate prevailingon the Tokyo Foreign Exchange Market on March 31, 2004.
2. Net income per share of common stock is based on the average number of shares outstanding during each period.
3. Shareholders’ equity per share of common stock is based on the number of shares outstanding at the end of each period, minus treasury stock.
4. Subsequent to March 31, 2004, cash dividends per share of ¥45.00 were approved at the general shareholders’ meeting on June 29, 2004
(see Note 18 of the accompanying notes to the consolidated financial statements).

Accounting principles generally accepted in Japan (Japanese GAAP) yield significantly different results for net income. Accordingly,
key financial highlights calculated using Japanese GAAP are shown below for reference.

Japanese GAAP

In millions of yen
Years ended March 31

In thousandsof U.S. dollars
Year endedMarch 31

2004

2003

2002

2004

Revenue............................................................................. ¥0,527,409
Operating profit..................................................................
81,286
Ordinary profit....................................................................
76,243
Net income ........................................................................
41,111
Total assets........................................................................
1,092,067
Total shareholders’ equity..................................................
403,257¥0,523,271
72,90270,06335,583
1,090,131
369,753¥0,497,921
43,022
41,5419,583
1,071,190
392,149$04,975,557
766,849
719,274
387,840
10,302,519
3,804,311

In yenIn U.S. dollars¥0,041.11
40.00
1,681.23$ 1.71
0.38
16.89

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

¥0,154.96
40.00
1,641.53¥0,181.40
40.00
1,790.58

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

(In billions of yen)5050

40403030

2020

10100000

0102030400

01020304

The Company reported record-high revenue, operating profit and ordinary profit based on Japanese GAAP in the year ended
March 31, 2004. Cash dividends of ¥45.00 per share were declared in the year ended March 31, 2005, an increase of ¥5.00 fromthe year ended March 31, 2004.
Note: Japanese GAAP were amended in the year ended March 31, 2001, with the adoption of accounting standards for pension benefits.
In the year ended March 31, 2002, the Company revised its pension plans and changed the accounting method for unrecognized actuarial gains and losses. Unrecognized actuarial gains and losses, which had been amortized using the straightline method over the average remaining service period prior to the year ended March 31, 2002, were charged to income onan “as-incurred” basis. The Company also recorded unrecognized transition assets/obligations as a one-time charge toincome. In addition, prior service costs were charged to income on an as-incurred basis. This resulted in a decrease inincome before income taxes of ¥35.0 billion.
One-time recognition on an as-incurred basis for pension benefits is not permitted under U.S. GAAP. Accordingly, unrecognized actuarial gains and losses, unrecognized transition assets/obligations and prior service costs were amortized in theaccompanying consolidated financial statements prepared under U.S. GAAP.
In the year ended March 31, 2000, the Company recorded a ¥4.3 billion gain on sales of securities resulting from an initialpublic offering by a subsidiary.
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