SECOM REPORT

2023
Year ended March 31, 2023

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 freefrom concerns.
Today, SECOM, comprising the parent company and the companies of the SECOM Group, boasts an extensive businessportfolio encompassing security services, fire protection services, medical services, insurance services, geospatial information
services, business process outsourcing and information and communications technology (BPO and ICT) services, andother services. By striving to create services and systems that deliver safety and peace of mind, as well as make life more
comfortable and convenient, SECOM is striving to realize its Social System Industry vision, which describes a framework of
distinctive, integrated services and systems.
Operating in an environment characterized by significant upheaval and amplified uncertainties, in 2017 SECOM formulated
the SECOM Group’s Vision for 2030 with the aim of accelerating realization of the Social System Industry vision. Guided by thisvision, 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. By swiftly and accurately grasping evolving needs and capitalizing on
its advanced technologies and extensive know-how, SECOM is working to address social imperatives, positioning it to achievesustainable growth together with society.
SECOM has also expanded into 16 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 to broaden global awareness of the
SECOM brand.
*ANSHIN is Japanese for “peace of mind.”

CONTENTS

2 Financial Highlights
4 A Message to Stakeholders
11 In Memoriam
12 The SECOM Group’s Vision for 2030
14 SECOM Group Road Map 2027
20 The Path to Value Creation
22 SECOM at a Glance
24 The Value Creation Process
26 SECOM’s Core Competitive Advantages
27 Initiatives to Promote Career Opportunities for Women
28 Sustainability
30 KGIs and KPIs for Material Sustainability Issues
32 SECOM Today
46 ESG Initiatives
65 SASB Index
Financial Information and References

SECOM’s Philosophy

66 Financial Review

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.

70 Consolidated Financial Statements
77 Other Financial Data
81 Corporate Information
85 Regarding Publication of SECOM Report 2023

MissionOur role andraison d’êtreWe 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.

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

Our ideal view of SECOM
in the future

Our Social System Industry vision describes a framework of innovative and integrated services and systems that deliver safety andCorporate Philosophy
Values

Our shared beliefs
and guiding principles

peace 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 REPORT 2023

1

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

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

In millions of yen

In thousands of
U.S. dollars

For the years ended/as of March 31

Years ended March 31

Year ended March 31

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

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

2023

2022

2021

2023

¥1,227,316
145,552
111,558
2,277,379
1,267,205¥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$ 9,159,075
1,086,209
832,522
16,995,365
9,456,755

In yenIn U.S. dollars¥ 411.95
170.0085.00
5,233.74$ 3.86
1.34
0.67
44.08

¥ 516.68
180.0090.00
5,906.70¥ 492.83
175.0090.00
5,546.11

Notes: 1. Yen amounts have been translated into U.S. dollars, solely for the convenience of the reader, at the approximate rate of ¥134=US$1, the rate
prevailing on the Tokyo Foreign Exchange Market on March 31, 2023.
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 27, 2023, approval was granted for a proposal to pay a year-end dividend of ¥95.00 for the year ended March 31, 2023.

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

2023

2022

2021

2023

¥1,101,307
136,700
156,124
96,085
1,989,062
1,316,047¥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$ 8,218,709
1,020,149
1,165,104
717,052
14,843,746
9,821,246

In yenIn U.S. dollars¥ 342.17
170.0085.00
4,958.18$ 3.32
1.38
0.67
40.50

¥ 445.02
185.0090.00
5,427.63¥ 431.27
180.0090.00
5,147.30

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, 2023, was 41.6%.

Net income attributable to SECOM CO., LTD.

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

(In billions of yen)

120

100
107.7

100

111.6
80

96.6
89.7

80

92.0

87.1

87.0

94.3

96.1

2022

2023

89.1

89.9

74.7
60

60
40
40
20

20

0

0
2018

2019

2020

2021

2022

2023

2018

2019

2020

2021

Note: In the ﬁscal year ended March 31, 2023, net income attributable to SECOM CO., LTD., advanced ¥3.8 billion, to ¥111.6 billion. This was despite adecline in operating income—owing to the fact that the security services and ﬁre protection segments beneﬁted from comparatively proﬁtableprojects in the preceding period, as well as to investments in growth, primarily in the security services segment; an increase in losses due tonatural disasters in the insurance services segment; and an elevated fuel cost adjustment unit price in the BPO and ICT segment—and reﬂected
increases in gain on private equity investments and equity in net income of affiliated companies.
In the 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 three segments.
Higher results in the security services segment were underpinned by increases for electronic security services in Japan and overseas and for 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.

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SECOM REPORT 2023

SECOM REPORT 2023

3

A Message to Stakeholders

Under the SECOM Group Road Map 2027,
we will strive to enhance corporate value
through the creation of new value.

Ichiro Ozeki
President and Representative Director

AZ-Air, a security system for small and medium-sizedcommercial facilities and offices. In April 2023, we
introduced anone, a communication and conversation
service for seniors that uses a robot. We also responded toincreasingly diverse customer needs by launching YORiSOS,
an emergency alert and daily health management app thatcan be linked to the Apple Watch’s fall detection feature tonotify SECOM should a fall be detected.
Overseas, we continued to focus on Association ofSoutheast Asian Nations (ASEAN) member states, which are
expected to continue seeing economic growth, promoting the
introduction of services customized to reflect local market
needs, including an interactive security system that links
with smartphones. In February 2023, Turkish subsidiary
Secom Aktif Guvenlik Yatirim A.S. provided relief supplies
and took part in rescue efforts in the wake of the major
earthquake that struck the south of that country.
We also pushed ahead with efforts to enhance oursustainability program, which strives to contribute tosustainable growth for society and to improve corporate
value by addressing key related challenges. In December
2022, we earned the top rating in the climate change
disclosure program run by the CDP, an international not-forprofit environmental organization, making the Climate
Change A List and earning a place on the Supplier
Engagement Leaderboard for the third consecutive year.
During the period, we proceeded with theimplementation of strategies in line with the SECOM Group
Road Map 2022, developed with the aim of ensuring
achievement of the SECOM Group’s Vision for 2030. With
some pandemic-related restrictions on business activities
remaining in place, inflation and attendant cost surges,
together with necessary investments in growth and asecond consecutive annual base salary increase
implemented to bolster employee motivation, meant that we
fell short of the road map’s consolidated operating profit
target. Nonetheless, we did make steady progress, posting
record-high consolidated revenue.

SECOM Group Road Map 2022: A look backConsolidated operating results
The Japanese economy showed signs of a gradual recovery
in the fiscal year ended March 31, 2023. While economic andsocial activity gradually returned to normal andimprovements were seen in corporate earnings and privatesector consumption, among others, as people graduallyadapted to the post-COVID-19 “new normal,” downside
economic risks, including those associated with the current
unstable global situation, supply side constraints, rising
prices and tightening monetary policy around the world, as
well as fluctuations in financial and capital markets,
continued to warrant attention.
Against this backdrop, we pressed forward with efforts toachieve the SECOM Group’s Vision for 2030, formulated withthe aim of realizing our Social System Industry vision, whichseeks to deliver safety and peace of mind, as well as to makelife more comfortable and convenient. These focused on
extending meticulously tailored, seamless services that
respond to the diverse and sophisticated needs of customers.

Consolidated net sales and operating revenue for theperiod under review amounted to ¥1,227.3 billion, up 5.2%,
or ¥61.2 billion, owing to contributions from Senon Ltd.,
which became a consolidated subsidiary in July 2022, and toincreases in all segments except fire protection services.
Operating income declined 6.9%, or ¥10.9 billion, to ¥145.6
billion, owing to the fact that the security services and fire
protection services segments benefitted from comparatively
profitable projects in the preceding period, as well as toinvestments in growth, primarily in the security services
segment, an increase in losses due to natural disasters in
the insurance services segment and an elevated fuel costadjustment unit price in the BPO and ICT services segment.
Net income attributable to SECOM CO., LTD., rose 3.6%, or¥3.8 billion, to ¥111.6 billion, reflecting factors such asincreases in gain on private equity investments and equity in
net income of affiliated companies.

Highlights of the period
Guided by our goal of delivering safety and peace of mind, as
well as making life more comfortable and convenient, we
promoted a variety of initiatives in our various businesses in
the period under review. In June 2022, autonomous security
robot cocobo began operating at Narita International Airport.
Cocobo was also honored with multiple awards, including a

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SECOM REPORT 2023

GOOD DESIGN AWARD, an annual evaluation andrecommendation program in Japan that acknowledges
outstanding examples of industrial design, underscoring theacclaim it has earned. In July, Senon, a leader in theprovision of airport security services, joined the SECOM
Group. The same month, we launched System Security

Over the five years of the SECOM Group Road Map 2022,
which was devised in May 2018 and concluded in the period
under review, we positioned responding to technologicaladvances and a declining labor force as priority challenges
and worked actively to keep abreast of rising needs related
to these issues, which we saw as likely to yield significant
business opportunities. To ensure achievement of the
SECOM Group’s Vision for 2030, we also promoted crucial
investments with a medium- to long-term perspective,
including concentrated investments in people and systems.
With artificial intelligence (AI), the Internet of Things (IoT),
5G mobile communications and other advanced technologies
continuing to evolve at an astounding pace, the security
services industry, which is expected to benefit greatly fromsuch progress, has entered an era of transformation.
Recognizing that making the most of this opportunity to
evolve our businesses will require capabilities and a senseof urgency on an entirely different level, we strove toenhance our R&D system by, for example, promoting open
innovation, which allows us to leverage the knowledge andexpertise of various partners, in addition to proprietary
SECOM technologies.
The spread of COVID-19 had a major impact on all facetsof life, including by restricting business activities. At thesame time, new business practices and patterns ofconsumption took hold as the world moved online,
accelerating digital transformation (DX) in all aspects of life.
One consequence of this is the emergence of new needs for,among others, services that support minimally staffed andunattended retail facilities, employee attendance

management services that accommodate work stylereforms, information security improvement and document
digitalization services, and monitoring services that help
protect elderly parents and other family members, which we
took decisive steps to address. We also promoted various
investments—including to boost the capacity of our coresystem, which is critical to our on-line security systems—
that enabled us to respond flexibly to these and other newneeds, as well as technological change.
In the area of on-line security systems for commercial
facilities, the core of our commercial security services
business, we developed and actively promoted System
Security AZ, which offers excellent scalability that allows its
expansion to include, for example, facility control andemployee attendance management. In addition to reinforcing
and expanding the added value of System Security AZ by
adding human resources tech, among others, we
strengthened our sales and service systems by assigninghuman resources with increasingly critical ICT-related
knowledge and skills to all regions of Japan, thereby
improving the IT literacy and proposal development
capabilities of sales staff.
Looking ahead, we will continue to promote System
Security AZ as our mainstay on-line commercial security
system, capitalizing on its scalability to introduce various
new services that add value. To encourage broad adoption ofthese new value-adding services, we will not only strive toattract new subscribers but also advance a project designed
to replace existing subscribers’ currently installed
equipment with up-to-date models. Through such efforts,

SECOM REPORT 2023

5

A Message to Stakeholders

we will look to increase the percentage of our on-line
commercial security system subscribers using System
Security AZ.
In home security services, pandemic restrictions on
movement made it difficult for people living any distanceaway to return to their family home, exacerbating the need forassistance in monitoring seniors. We stepped up advertisingand publicity activities, highlighting our home security
systems, whereby we keep an eye on elderly parents aroundthe clock on behalf of family members living apart anddispatch emergency response personnel from the nearest
SECOM emergency depot if required, which succeeded inbolstering the market’s awareness of SECOM Home Security
as a monitoring solution. We also responded to varied needs
by launching a variety of meticulously tailored optional
services for SECOM Home Security subscribers, including
cloud-based services, and improving user conveniencethrough enhanced connectivity with Apple Watch.
We worked to expand our operations overseas throughboth organic growth in countries and territories where wecurrently operate, as well as through M&As, including in newmarkets, with the objective of boosting revenue generated inmarkets outside Japan to 10% of the consolidated total, fromthe current 5%. To this end, as part of the concentrated
investments to reinforce human resources called for under
the SECOM Group Road Map 2022 we increased hiring ofmanagement staff with superior international businessskills who share SECOM’s principles and philosophies. We
also resolved to revamp our service and product lineups
from the bottom up with the goal of moving away from our
traditional focus on Japanese companies to target local
customers as a full-fledged participant in local markets. Our
first move was to introduce a highly convenient and scalable
cloud-based on-line security system in Thailand, where
economic growth has given rise to a burgeoning middle
class, leveraging results subsequently by, among others,
broadening deployment to other regions. Also in Thailand,
we kicked off our first overseas promotional effort, centeredon television advertisements, which led to a dramatic rise ininquiries from potential local customers, as well as
significant concrete benefits, including improved motivationon the part of local staff and a significant rise in applicantsfor employment. In addition, we secured major orders for
products and system installation projects in multiple otheroverseas markets, including Singapore, the United Kingdom
and Australia, that fortified our local presence. Other moves
included acquiring on-line security systems companies in
Malaysia, Singapore and Hong Kong, and establishing a new
business development project to further advance businessalliances and M&As overseas.
In the BPO and ICT services segment, we continued torespond to the ever-increasing demand for vital infrastructureamid labor shortages and the proliferation of DX. In the area

6

SECOM REPORT 2023

of data center services, we opened data centers not only inTokyo, but also in the Kansai area, in western Japan, andin several smaller regional cities, taking advantage of low
latency and highly reliable connectivity with the megacloud,and opened access points, which simplify connectivity to
cloud service providers, in key cities across the country,
the first step in a plan to build a nationwide platform witha view to expanding our edge data center business. In ICT
services, we built and operated IT systems, enabling us to
support the digitalization of customers’ operations, as wellas to commence sales of new products that offer greater
efficiency and safety. In BPO services, with demand driven by
COVID-19 appearing to flag but that for outsourcing services
flourishing, we established new contact centers and otherservice facilities in multiple locations.
On another front, operating conditions encouraged us toreview our business portfolio and take steps to optimize the
SECOM Group. Key among these were the divestiture of aconsolidated real estate development and sales subsidiaryand the transformation of listed subsidiary Secom Joshinetsu
Co., Ltd., into a wholly owned subsidiary. We also acquired
Senon, a move aimed at elevating our presence in the market
for security services for airports and other major
infrastructure, as well as for large-scale facilities, andincreasing productivity in the security services business.
To enhance productivity Groupwide, we began working to
replace existing in-house business systems that haveundergone repeated modifications over many years. This
followed a thorough review of the substance of work
performed and processes used by each individual
department, as well as efforts to revamp administrative
rules and promote multitasking among related departments.
This is a massive, ongoing undertaking requiringconsiderable time to consider a broad range of factors, but
we made steady progress.
The five years of the SECOM Road Map 2022 brought
momentous socioenvironmental changes. Particularly
notable, of course, were the pandemic and rapid inflation.
Nonetheless, thanks to various initiatives, we reported
record-high consolidated operating profit in the fiscal year
ended March 31, 2022. In the fiscal year ended March 31,
2023, the plan’s final year, we saw key challenges—including
improving employee engagement, promoting open
innovation and making additional investments to solidify ouroperating foundation—take on greater urgency to ensure ourachievement of the SECOM Group’s Vision for 2030,
prompting us to focus on decisive related initiatives. One
consequence of this was that we fell short of the road map’s
ultimate consolidated operating profit target. However, weare confident that the accumulated benefits of initiatives
implemented under this road map, particularly in the
security services business, which is undergoing greatchange, will help accelerate growth in the years ahead.

SECOM Group Road Map 2027: The path forward
In May 2023, we announced the SECOM Group Road Map
2027, which clarifies our direction through to the fiscal year
ending March 31, 2028. This road map sets forth five core
strategies for growing and enhancing our operations as wework to achieve the SECOM Group’s Vision for 2030: Expand
monitoring and security services, strengthen overseas
operations, reinforce BPO and ICT services, improve
productivity and reward stakeholders.
Initiatives to expand monitoring and security services
will emphasize realizing seamless protection by linking
diverse information in the Mimamori* Cloud and creating
security-focused services and solutions by, among others,
creating highly convenient offerings that combine robust
SECOM security services and open cloud services.
* Mimamori is Japanese for “monitoring.”

To strengthen overseas operations, we will seek to realize
further growth in promising overseas markets. Accordingly,
we will augment existing businesses by broadening offerings
that meet individual market needs, as well as enter untappedmarkets and create new growth models.
With the aim of reinforcing BPO and ICT services, we will
focus on creating business infrastructures and offering
services that provide digital support for customers’
operations. These will include continuing to bolster our data
centers, network, Software as a Service (SaaS) solutions and
BPO services.

To improve productivity, in addition to businessexpansion we will take steps to maximize our service value.
We will also leverage the latest technologies to help
employees demonstrate their full potential and boost ouroperational efficiency.
In addition to the ongoing efforts to provide services thatearn customer satisfaction and increase returns toshareholders, we will seek to reward stakeholders bypromoting investments to secure and foster humanresources and stepping up the creation of workplaces thatenable each employee to capitalize on their individuality andfully exercise their capabilities. We will also strive toconsistently earn the trust of society by actively
incorporating sustainability perspectives into management
decisions and business standards to accelerate ourachievement of sustainable management.
Guided by the SECOM Group Road Map 2027, we will takeadvantage of our advanced technologies and extensive
know-how to address social imperatives and enhance
corporate value, positioning us to achieve sustainablegrowth together with society. Expect great things fromSECOM going forward! (For more information on the SECOM
Group Road Map 2027, please see pages 14–19.)

Sustainable management
More than ever before, growing sustainably together withsociety requires that we conduct our operations in abalanced manner, taking into account all of our various
stakeholders, that is, our shareholders, customers,
employees, business partners and local communities.
Reflecting our desire to continue to earn the trust of society,that is, of our stakeholders, we will expedite the integrationof management and sustainability strategies under the
SECOM Group Road Map 2027. In terms of efforts to date, in

December 2021, we formulated the SECOM Group Basic
Sustainability Policy. Having identified material sustainability
issues, in October 2022 we formulated related key goalindicators (KGIs) and key performance indicators (KPIs),
toward the attainment of which we are promoting a variety
of initiatives. We will periodically evaluate our progress
and publicize our findings with the aim of encouraging
improvement.

SECOM REPORT 2023

7

A Message to Stakeholders

As part of our commitment to promoting diversity, we
aim to boost the proportion of management-level positions
occupied by women to at least 30% by the fiscal year ending
March 31, 2031. To achieve this target, we are focusing on
expanding the scope of jobs available to women and actively
promoting female employees, as well as on fostering female
leaders. We have appointed a number of women to
management positions in the home security services
business’ sales departments and administrative offices. In
April 2023, we appointed female employees to the positionof manager at security services offices, a move that had long
been under consideration.

Reinforcing corporate governance
Scrupulous corporate governance is vital to earning thetrust of society and bringing our abilities into full play. We
are working to strengthen our corporate governance system
to improve the transparency and objectivity of management.
Our Board of Directors, which currently has five inside
and three outside directors, engages in active discussion. As
part of our effort to enhance corporate value over the
medium to long term, we are currently considering
increasing the diversity of the Board’s composition, including
by raising the proportion of outside directors and thenumber of female directors.
Remuneration for directors (excluding outside directors)
has to date comprised fixed monthly salary, bonuses andshare-based remuneration, with a relative proportion of
approximately 80:15:5. We recently resolved to increase theproportion of share-based remuneration to further
encourage management that takes a shareholder
perspective and emphasized the improvement of corporate
value, as a result of which the relative proportion going
forward will be 65:15:20. Regarding the method we use todetermine bonuses paid to these directors, which are
performance-linked, we resolved to give comprehensive
consideration to operating profit, earnings per share andemployee engagement (employee satisfaction)—key
management targets—and to make decisions based on levelof achievement of these key management targets.
In June 2023, an outside director was appointed to chair
our Nomination and Compensation Committee, established
as a discretionary committee of the Board of Directors, tofurther bolster objectivity and transparency. Looking ahead,
we will work to further strengthen our pipeline of candidates
for appointment to management positions by debating
succession plans.
We hold listed shares for strategic purposes, primarily
from a business perspective. The Board of Directors
continues to verify the appropriateness of holdings annually.
If a holding’s appropriateness is judged insufficient, it will betargeted for reduction through the sale of shares.

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SECOM REPORT 2023

In a move aimed at expediting the expansion of ouroperations overseas, in October 2022 we formulated the
SECOM Group Human Rights Policy to underpin our efforts
to address human rights issues, a global challenge, as wellas to ensure we remain an organization that is trusted bysociety by clarifying our stance as an organization thatmeets its obligations with respect to human rights.
By continuing to enhance employee engagement,
encourage work–life balance, and promote diversity andinclusion, we will strive to bolster the capabilities of ourhuman resources, realize a varied labor force and contributeto the spiritual affluence and well-being of society.

Human resources strategy
Our ability to provide high-grade services that earn thesatisfaction of customers depends on continuing to secureand foster human resources, and on making it possible forevery employee to fully exercise their abilities. To this end,
employees must be motivated to work at SECOM and feel job
satisfaction. Our human resources strategy thus focuses onenhancing employee engagement and promoting diversity.
We recognize that optimizing the workloads of the frontline employees is essential to our security services businessand that improving their terms of employment, including
remuneration, is indispensable to better employee
engagement. Over the past several years, we haveaddressed raising productivity, necessary to optimize frontline workloads, as a priority challenge. In the period underreview, we implemented a second consecutive annual basesalary increase, viewing such outlays as investments insustainable growth, rather than as expenses, and as anecessity in light of recent socioeconomic conditions.
Looking ahead, we will continue to boost returns toemployees in a manner that takes socioeconomic factors
into consideration. Additionally, to encourage employees’
efforts to build assets, and to approach their work with aperspective similar to that of management and investors, wehave introduced a benefit plan that grants common stock
shares as restricted stock to all employees of the parent
company, as well as to employees of certain SECOM Group
companies, or approximately 23,000 individuals in total. In
March 2024, eligible employees and executive officers willbe allotted 25 shares and 50 shares, respectively, to be
facilitated by the disposal of treasury stock. This is expected
to result in the accumulation of 100 shares for each
employee and 200 shares for each executive officer over the
next four years. We are confident that these and otherefforts to optimize workloads and improve terms of
employment for employees will underpin efforts to attract
and retain human resources, thereby effectively enhancing
our team of employees, which are our most importantmanagement resource.

Financial strategies
The SECOM Group Road Map 2027 outlines four financial
targets for the fiscal year ending March 31, 2028:
Consolidated revenue of at least ¥1,250.0 billion, operating
profit of between ¥160.0 billion and ¥180.0 billion, a dividend
payout ratio of around 45%, and a return on equity (ROE) of
10%. (Targets are based on Japanese GAAP.)

Capital management
Our philosophy for the allocation of cash is to earmark cashon hand and cash generated by our portfolio of stable
recurring revenue–based businesses, notably on-line
security systems, for investments in growth, operating funds
and returns to shareholders. With the security services
industry in an era of transformation, guaranteeing future
growth will require critical investments going forward.
Accordingly, our current emphasis is on investments ingrowth. Recognizing the effective use of cash as a criticalmanagement issue, and that investments in growth are a
growth driver that enhances corporate value but can at thesame time be challenging, our policy is to fund theseparticular investments from equity, although ensuring the
optimal allocation of cash remains a priority.
Operating funds are the funds needed to ensure ourability to provide services without interruption, 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.
Regarding returns to shareholders, we ensure the steadyand continuous distribution of growing consolidated income
as dividends, in line with our dividend payout ratio target,
which under the SECOM Group Road Map 2022 was between
40% and 45% and under the SECOM Group Road Map 2027

has been amended to around 45%. In the fiscal year ended
March 31, 2023, dividends for the full term—the record dates
for which fall during the period—amounted to ¥185.00, an
increase of ¥5.00 from the previous fiscal year. Looking
ahead, we will continue to promote flexible share buybacks
while paying careful heed to such factors as our cash
position, the scale and timing of investments in growth, andtrends in share prices. We recently repurchased our own
shares between February and June 2022 and February and
May 2023, with total repurchase prices of approximately¥30 billion and ¥25 billion, respectively. We resolved to
implement a second buyback this term—between Augustand December 2023—which will have a total repurchaseprice of ¥30 billion.
We maintain high credit ratings from key ratings
agencies (AA+ from Japan Credit Rating Agency, Ltd. (JCR)
and AA from Rating and Investment Information, Inc. (R&I)),
evidence that our capital strategies are considered agile.

Investments in growth
In addition to our rapidly evolving security services business,
we are promoting investments in other promising areas,
including the BPO and ICT services business. We areconfident that such investments will accelerate our growthin the years ahead and will continue to proactively seek out
appropriate targets while keeping a close eye on capitalcosts. For investments through M&As, we target companies
both in Japan and overseas that will strengthen and add
value to our on-line security systems, or broaden our BPO
and ICT services, including in such areas as SaaS and healthtech. In 2023, we invested in ARTERIA Networks Corporationin Japan, which we followed with Eagle Eye Networks, Inc.,
and Brivo, Inc. in the United States. Capital investments during
the period focused on reinforcing our internal networks toboost productivity, expanding our data centers to meetgrowing demand and building a second hospital in India.

SECOM REPORT 2023

9

A Message to Stakeholders

Improving capital efficiency
Our target for ROE in the SECOM Group Road Map 2022 was
8%-plus, but in the SECOM Group Road Map 2027 we lifted
this to 10%. To reach this target, we will take steps to lift
profit levels and control capital. Through organic growth
attained through the implementation of core strategies, aswell as through M&As and other investments in growth, wewill strive to achieve our target for consolidated operating
profit in the plan’s final year, that is, the fiscal year ending

In Memoriam

March 31, 2028, of between ¥160.0 billion and ¥180.0 billion.
To achieve an ROE of 10%, we will also conduct sharebuybacks in a timely manner.
We continue to explore ways to make effective use oftreasury stock, which has increased as a result of recent
share buybacks. In the period under review, we introduceda system for disposing of treasury stock as restricted stock
for the purpose of enhancing employee engagement.

Ensuring reliable growth
We are confident that security-related needs will remain
firm, owing to incipient demand for monitoring services andworsening perceptions of public safety. Nonetheless,operating conditions remain uncertain. Amid the persistenttightening of monetary policy worldwide, downside risks
continue to demand attention, including those associatedwith the possibility that downturns overseas will exert
downward pressure on the Japanese economy, as well aswith persistent supply side constraints, rising prices, andfluctuations in financial and capital markets. In the fiscal
year ending March 31, 2024, we also expect advanceinvestments in, among others, initiatives aimed at boostingproductivity, promotions in overseas markets and salary
increases, as well as a one-time increase incommunications-related outlays, to push up costs.
We have worked hard to absorb the impact of cost
increases. However, in August 2023 we were forced to raise
subscription fees for SECOM Home Security systems toreflect a sharp surge in costs attributable to labor shortages.
In data center services, to mitigate volatility in electricity
costs, which significantly impact our operating performance
we are amending service contracts to incorporate a billingformat that reflects changes in electricity costs. We also
expect to begin seeing the positive impact of the various
investments and initiatives we have made to date.
Advanced technologies have found practical uses amid
significant changes in our operating environment, including
a declining birthrate, the aging of Japan’s population andlabor shortages. These issues, together with the postpandemic “new normal.” are revolutionizing the security
services business. We see this as the perfect opportunity for
us to hasten growth and secure an unassailable market
position by creating new value. To make the most of thisopportunity, we recognize that we must tirelessly seek out
excellent investments in growth. These include investments
not only in facilities and M&As, but also to secure superior
human resources and enhance employee engagement. We
are confident that this management approach will position
us to increase benefits for both ourselves and our
stakeholders, underpinning greater corporate value. We

10

SECOM REPORT 2023

believe that this, plus active efforts to addressing
environmental, social and governance (ESG)-related issues,
will improve our sustainability and enable us to fulfill our
mission, unchanged since our founding, of realizing a society
free from concerns.
Recent years have given us reason to feel the weight ofour responsibility to our stakeholders more than ever before.
I remain humbled that I have been entrusted with the
management of SECOM at this extraordinary time. I hopethat you, our stakeholders, will continue to expect greatthings from SECOM. In all of our endeavors, I look forward to
your ongoing support and guidance.

August 9, 2023

Ichiro Ozeki
President and Representative Director

Makoto Iida

Career Highlights
July 1962
President and Representative
Director (Founder)

SECOM Founder and Advisor Makoto Iida passed away on January 7, 2023, at the ageof 89.
Makoto Iida cofounded Japan’s first security services company, Nihon Keibi Hosho(today’s SECOM), with the late Juichi Toda, a friend since university, in July 1962. In an
era when water, air and safety were thought of as being free, launching a businesscentered on security services was a challenging proposition. Under their leadership,
the Company won the contract to provide security for the athletes’ village at the first
Tokyo Olympics in 1964, an achievement that would serve as a catalyst for theCompany’s subsequent growth. In 1966, the Company developed and marketed
Japan’s first on-line commercial security system, laying the foundation for its
evolution as a provider of security services nationwide.
Iida also served as the first chairman of the All Japan Security Service Associationfrom its inauguration in 1980 through to 2002. Today, Japan’s security services
industry includes more than 10,000 security services companies employing
approximately 600,000 security guards and generating annual sales of around¥3.5 trillion.
Insights articulated by Iida have been handed down throughout the SECOM
organization and to all employees since SECOM’s founding, underpinning daily efforts
to deliver safety and peace of mind and serving as a compass for the Company’s
operations. We are forever grateful for his guidance and for the solicitude he showed
everyone he encountered. As the heirs to his dream of realizing a society free fromconcerns, we pledge to continue working to drive the Company’s growth and evolution
and contribute to the betterment of society.

February 1976
Chairman and Representative
Director
June 1997
Supreme Advisor and Director
June 2022
Founder and Advisor
Honor
January 2023
Order of the Rising Sun, Gold andSilver Star, Junior Fourth Rank

Helping provide security services for
the Tokyo Olympics in 1964

With cofounder Juichi Toda (left) in 1967

Celebrating the launch of a computerized on-line
security system in 1975 (center)

Speaking at a meeting of the All Japan Security Service
Association in 1999

SECOM REPORT 2023

11

The SECOM Group’s Vision for 2030

Delivering enduring peace of mind in an ever-changing society
Creating the ANSHIN Platform: Providing Tailored Services that Deliver Seamless Peace of Mind

Strategies for creating the ANSHIN Platform

concerns through collaboration with partners in industry,
government and academia who share our mission and whobring together diverse technologies and expertise. By“seamless,” we mean enduring peace of mind for anyone
and everyone, whenever and wherever necessary.
Society faces significant risks associated with crimes,
accidents, cyber crimes, natural disasters, illnesses andaging. In addition to routine advance preparation, we assist
customers in the event of an incident to accurately grasp thesituation and minimize damage, as well as after an incident
to ensure the swift restoration of operations. In line with thisfour-pronged concept, which we call the SECOM ANSHIN
Flow, we continue to expand and enhance our services
and systems.

To create the ANSHIN Platform, we are currently promoting
initiatives in line with four strategies. The “ALL SECOM”
strategy, which focuses on rallying SECOM Group strengths
to maximize synergies. Through our “Collaboration” strategy,
we are promoting open innovation with the aim of creating
new value. Our “Connection” strategy emphasizes leveraging
Big Data analysis, which makes use of advanced information
technologies, to respond to latent needs and strengthen our
relationships with customers. Our “Enhanced value” strategy
revolves around adding greater value to services that makeIn keeping with our mission, which is to help achieve asociety free from concerns, we strive always to provide
reliable peace of mind that is trusted by society. Given theincreasingly complex and intertwined natures of social
imperatives, individual needs regarding safety and peace ofmind are becoming more diverse.
In May 2017, we formulated the SECOM Group’s Vision
for 2030 to clarify our strategic direction through to 2030 as
we accelerate efforts to achieve our Social System Industry
vision. Guided by the SECOM Group’s Vision for 2030, we areworking to create the ANSHIN Platform, a service
infrastructure through which we strive to provide tailoredservices that deliver seamless peace of mind. Anchored in
the relationship of trust we have cultivated with society, the
ANSHIN Platform seeks to help achieve a society free fromlife more comfortable and convenient, thereby accelerating
the realization of services and systems that respond toincreasingly diverse needs.
To address increasing needs for peace of mindin overseas markets, we will capitalize on know-how
cultivated in Japan to develop services tailored to regional
characteristics. Through such efforts, we will promoterecognition of the SECOM brand and seek to establish
ANSHIN as a universally recognized term.

Further reinforcing
SECOM’s relationships withcustomers and society

The ANSHIN Platform Service Infrastructure

The SECOM ANSHIN Flow
<Value>Safety andpeace of mind
Life/health/assets/informationIn
everydaylife

Advancepreparation

In
Grasp
the event of
the situation
an emergency

In
Minimizethe event ofdamagean emergency

After
Restorean emergency operations

Connection strategy

Enhanced value
strategy

AI, IoT and Big Data

Real-world
crimes andaccidents
Cyber crimes

Risks mayoccur
simultaneously

Natural disasters

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

In
everydaylife

Extensive coverage

Diverse risks

Operations/emergency response services

ALL SECOM strategy
Creation of
the ANSHIN Platform
Partners

Collaboration strategy

Everyday concerns<Added value>

Comfort andconvenience

Need to improve efficiency

Need to reduce costs

Need to rely on others

Issues to be addressed

12

SECOM REPORT 2023

SECOM REPORT 2023

13

SECOM Group Road Map 2027

Review of the SECOM Group Road Map 2022
From the fiscal year ended March 31, 2019 through the fiscal
year ended March 31, 2023, we promoted initiatives in linewith the SECOM Group Road Map 2022 aimed at ensuring
realization of the SECOM Group’s Vision for 2030. Having
positioned responding to technological advances and a
declining labor force as priority challenges, we promoted
crucial investments expected to yield appropriate returns
over the medium to long term—including concentrated
investments in people and systems—and worked actively tokeep abreast of rising needs related to these issues, which
we saw as likely to yield major business opportunities. Key
achievements over the road map’s five years enabled us toestablish a solid foundation for growth going forward.
Of particular note, we launched the new System Security
AZ series of platform-like security systems for commercial
facilities that provide all-in-one protection against crimes
and fires, as well as a variety of other functions. We also
worked to reinforce our human resources technology
services, which are highly compatible with commercial
security services, and reinforced collaborative capabilities.
As options for SECOM Home Security subscribers, we beganproviding the cloud-based SECOM Monitoring Service for
Seniors, which uses a dedicated app. In addition, we took
steps to strengthen SECOM Home Security’s connectivity
with third-party devices, including apps for Apple Watch andiPhone that deliver enhanced convenience.

Formulation of the SECOM Group Road Map 2027
Overseas, in 2019 we began offering security services in
Turkey and established the ASEAN Innovation Center inThailand, where we are striving to establish a full-fledged
business firmly rooted in the local community by, among
others, devising systems that respond to market needs, andkicking off a local advertising and publicity campaign.
Investments in our people, an important focus, included
enhancing returns to employees, including by raising basesalaries, and creating work environments conducive to job
satisfaction with the objective of improving employee
engagement.
We also sought to optimize our business portfolio. In
November 2021, we transformed listed subsidiary Secom
Joshinetsu into a wholly owned subsidiary. To expand thescale of our security services business, in July 2022 security
services company Senon joined the SECOM Group.
Initiatives under the SECOM Group Road Map 2022—
notably the introduction of new services, centered on
security and monitoring services in Japan, security services
overseas, and BPO and ICT services, as well as a variety ofmeasures implemented in-house—thus accelerated thecreation of a foundation for future growth.

In May 2023, we formulated the SECOM Group Road Map 2027 with the intention of
sharing our direction over the next five years with our stakeholders. Together withextraordinary socioenvironmental changes, recent years have brought remarkabletechnological advances. At the same time, in Japan a declining labor force, the aging ofsociety and worsening perceptions of public safety have taken on greater urgency, whileissues such as increasingly frequent and severe natural disasters, together withadvancing global inflation, are becoming more and more acute.
We are committed to accurately identifying needs arising from these circumstances,and will continue to promote open innovation, collaborating with a broad range of partners
to offer innovative services that deliver safety and peace of mind to customers whatever
the situation. At the same time, we will work to address social imperatives, positioning us
to achieve sustainable growth together with society.

SECOM Group Road Map 2027: Core strategies
Guided by the SECOM Group Road Map 2027, we will capitalize on our advanced
technologies and extensive know-how to further promote five core strategies aimed
at ensuring our ability to deliver safety and peace of mind in all situations.

Road Map 2027— Capitalize on advanced technologies and extensive know-how to deliver safety and peaceof mind in all situations
Core strategies
Expandmonitoring andsecurity services

14

SECOM REPORT 2023

Key initiatives
Provide innovative security-focused services and solutions• Realize seamless protection by linking diverse information in the Mimamori (“Monitoring”) Cloud• Create a business infrastructure that combines robust security and an open cloudStrengthen
overseas
operations

Realize further growth in promising overseas markets• Add depth to existing security services and medical services businesses• Cultivate new business portfolios in new overseas markets and new business areas

Reinforce
BPO and
ICT services

Create an infrastructure that supports customers’ operations• Enhance service infrastructure by establishing new data centers and expanding network• Expand solutions to assist customers in ensuring smooth operations and provide effective
BPO services

Improveproductivity

Enhance productivity by maximizing service value and improving operational efficiency• Implement initiatives that facilitate the provision of a steady stream of new services and maximize
service value• Leverage the latest technologies to help employees reach their full potential and improve
operational efficiency

Rewardstakeholders

Ensure SECOM remains the company of choice for all stakeholders• Securing and fostering human resources by improving working environment including measuresdesigned to bolster employee engagement• Press ahead with sustainability initiatives to earn the trust of all stakeholders

SECOM REPORT 2023

15

SECOM Group Road Map 2027

1

Create SaaS models for the provision of merchandise
We will also transform the provision of merchandise for on-line security systems into a sophisticated yet simple and safe
service-based business suited to the cloud era.

Expand monitoring and security services

Develop more advanced monitoring services
We will leverage AI, 5G, cloud and other technologies toprovide new services and solutions, particularly in the areaof security. For residential subscribers, we will combine
home security and the Mimamori Cloud to facilitate theseamless monitoring of users, as well as develop services
for their families and nursing care providers, thereby
providing peace of mind in all aspects of daily life.
Security in the event of an emergency

Everyday monitoring

Healthcare data
Environmental data
Record of activities,
etc.

Mimamori CloudControl system

Dailyrhythms

Emergency
Security guards

Detection of
an irregularity

Key initiatives to date

Began providing the cloud-based SECOM Monitoring Service for
Seniors, which uses a dedicated smartphone app (June 2021)
See page 35
Launched SECOM Cantabile, an app for Apple Watch(February 2022) See page 35
Introduced anone, a communication and conversation service forseniors that uses a robot (April 2023) See page 35
Released YORiSOS, an app for Apple Watch that assists witheveryday health management and can also be linked to the Apple
Watch’s fall detection feature (April 2023) See page 35

Sensing

Vital sign data
Healthcare-related
adviceMonitoring
Interactive
Safetyverbalconfirmation
communication

Healthcare

Communication

Seniors

Services that enable unobtrusive, stress-free monitoring• Highly accurate, discreet sensing, linked to various devices used on a daily basis

Integrate robust security with and open cloud
For commercial subscribers, we will expand linkable open
cloud services to create a service infrastructure centeredon System Security AZ that supports subscribers’
business activities.

Security guards

Partners

Data
provisionAccess Control as a Service (ACaaS)

IoT as a Service (IoTaaS)

Provision of cloud-based services for
managing surveillance camera images anddetection events

Centralized management of accessauthorization, as well as of entry/exit record
and image storage, in the cloud

Provision of a communications environment
and user interface as one set to connect
IoT terminals installed in various equipment
and facilities

AI-based event
detection

Visitors

CongestionApp

API linkage

Family members

Nursing care,healthcare service
providers, etc.

Entry and exit
records
SurveillancecamerasImages of people entering and exiting

Air conditioning
equipment

Links to family members
and other key individuals

Key initiatives to date

Provision of interactive services that make use ofPCs, smartphones and other devices

Promote DX in the security services market
In addition, we will promote DX with the objective ofextending SECOM systems and know-how to partners whoshare our philosophy, driving improvements in the quality ofsafety and peace of mind for communities and society as
a whole.

Static guards

Open cloud services

Event detection

Key initiatives to dateReleased the cocobo security robot and the Virtual Keibi System(January 2022)
Senon joined the SECOM Group (July 2022)

Facility management

Assisting partners that share our philosophy todrive digital transformation

Development of apps
based on security system information• Remote management tools that reduce staffing andlabor requirements• Portal services that centralize status management for
multiple sites

Transport of valuables

Security DX Supported by
SECOM

Provided via an open framework

Linkage to third-party services

Security cameras and access control

Accessauthorization

Collaboration
with partners

Began providing System Security AZ-Air, a system optimized forsmall and medium-sized retail facilities and offices (July 2022)
See page 34
Launched AZ-Access, an access control system tailored to theneeds of subscribers with large-scale facilities (May 2023)
See page 34
Released dot-i, a web-based service for retail facility managementthat uses camera images to improve operational efficiency(July 2023) See page 34

Robust security services
Control system

New services

Video Surveillance as a Service (VSaaS)SECOM security systems that employ the latest technologies

through collaboration with partners• Access control services, ID management services• HR technology services (employee attendance
management, etc.)

Infrastructure centered on System Security AZ• Integration and centralization of on-line monitoring, facility access control, image recording and other functions• Continuous evolution through linkage with multiple devices and the application of AI, among others

16

SECOM REPORT 2023

Personal mobility
devices

Wearable devices

Information
processing

Robotics

Video management
systems

Data centers

SECOM REPORT 2023

17

SECOM Group Road Map 2027

Strengthen overseas operations

4
Key initiatives to date

Expanded provision of interactive security system that uses asmartphone app in overseas markets See page 37
Kicked off advertising and publicity campaign in Thailand
See page 37
Made investments in cloud-based physical security services
providers Eagle Eye Networks and Brivo, which extend SaaS
solutions primarily in North America (May 2023) See page 37

Add depth to existing businesses• Expand security services that employ
the latest technologies• Establish a globally recognized brand• Broaden operating foundation in Asia,
Oceania and elsewhere• Boost hospital operations in India,
including by establishing new facilities

Expand into new businesses• Leverage new technologies andsolutions to enhance services andsystems• Seek opportunities for collaboration
with other companies and M&As

3

Existing
overseas marketsNewoverseas markets

Existing
businesses

Existing
businesses

Existing
overseas marketsNewoverseas markets

NewbusinessesNewbusinesses

Existing overseas markets

Existing businesses

With the aim of realizing further growth in promising overseas
markets, we will add depth to existing security services andmedical services businesses while also cultivating businessportfolios into new overseas markets and new business areas.
In addition to advancing recognition of the SECOM brandworldwide, we will strive to boost revenue generated overseas
to 10% of the consolidated total by strengthening operations
through both organic growth and the active promotion of M&As.

New businesses

2

Expand into new markets• Enter markets in countries andterritories with high growth potential• Seek opportunities for collaboration
with other companies and M&As

Create new growth models• Implement M&As to establish new
foundations for growth• Explore new possibilities, focusing on
start-ups in the areas of securityrelated SaaS and health technology

New overseas markets

Reinforce BPO and ICT services

In addition to enhancing our service infrastructure byestablishing new data centers and expanding our network, wewill enhance existing and develop new SaaS solutions thatassist customers in ensuring smooth operations and provide
effective BPO services that help improve operational efficiency.
We will also build business infrastructures centered on
information security technologies and around-the-clock
services that provide digital support for customers’ operations.

Key initiatives to date

Acquired shares in ARTERIA Networks
Made plans to build two new data centers in the Greater Tokyo
Area (scheduled to open in 2024–2025) See page 45

We aim to improve productivity by leveraging technologies todevelop a steady stream of high-yield new services, thereby
maximizing service value, and by helping employees reach
their full potential and enhancing operational efficiency.

5

Key initiatives to date

Overhauled work duties
Revamped corporate structure and business processes
Updated in-house IT system

Reward stakeholders

We will continue investing in efforts to secure and foster
human resources that support the SECOM Group’s
provision of services, as well work to create workplaceenvironments conducive to greater diversity, enhanced
well-being, and improved and expanded capabilities. Having
worked to fortify our sustainability framework, we will
now focus on accelerating the integration of management
and sustainability strategies to ensure our ability to
evolve as a company that consistently earns the trust of
all stakeholders.

Key initiatives to date

Formulated target for achieving carbon neutrality by 2045
(May 2021), obtained certification of this target from the SBTi andjoined RE100 (July 2021) See pages 63–64
Formulated the SECOM Group Basic Sustainability Policy(December 2021) See page 28
Established KGIs and KPIs based on materiality analysis(October 2022) See pages 29–31
Created the SECOM Group Human Rights Policy (October 2022)

Financial strategies and quantitative targets
We have set three financial strategies: Enhance shareholder
returns while maintaining a sound financial position, toachieve our dividend payout ratio target of 45%; invest in
growth while remaining aware of the cost of capital; andconduct share buybacks in a timely manner to achieve an
ROE of 10%.

To further expedite the realization of services that will
ensure achievement of the goals of the SECOM Group’s
Vision for 2030, we will continue to share information on theinitiatives outlined in this road map with investors, as well as
to enhance opportunities for constructive dialog, as we workto achieve the quantitative targets we have set for the fiscal
year ending March 31, 2028, and to bolster corporate value.

Targets for the Fiscal Year Ending March 31, 2028 (Japanese GAAP) (Reference)

Results in the fiscal year
ended March 31, 2023

SaaS solutions that support

BPO services that contribute toData centers and networks

smooth operations• Expansion and development of SaaS-based
services for businesses including HR and
BCP that support operations and business
continuity• Aim: Become a platformer that serves as a
hub for HR technology services for smalland medium-sized commercial customers

the improvement of operating efficiency• Expansion and development of BPO services(contact center and back office support) that
respond flexibly to changes in the operating
environment, including evolving consumer
values and needs, a decline in the labor
force and the diversification of work styles

Targets for the fiscal year
ending March 31, 2028

¥1,101.3 billion

At least ¥1,250.0 billion¥136.7 billion¥160.0–¥180.0 billion

Dividend payout ratio

41.6%

Around 45%

ROE

8.4%

10%

Consolidated revenue

Service provision framework:• Construction of new data centers in Tokyo
and Osaka, and expansion of edge data
center business• Further expansion of interconnection
services that improve the experience ofcloud-based service users

Improve productivity

Consolidated operating profit

Information security technologies
and around-the-clock services
that protect customers’ business foundation and services
in a manner that is safe and ensures peace of mind

18

SECOM REPORT 2023

SECOM REPORT 2023

19

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.

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

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

1994
Begins offering Japan’s first remote image diagnosis support service

1983
Begins providing information andcommunications-related services
1985Launches information security services

1996
Commences management of residences for seniors

1998
Launches
certification
authoritybusiness

1974- Fire protection services

1962- Security services

1980

2012
Acquires At Tokyo
Corporation, one
of Japan’s leading
data center
services firms

2017Acquires BPO services
firm TMJ, Inc.

2006
Establishespresence inVietnam2011
Establishes presence in
New Zealand2019
Establishespresence inTurkey2001
Develops and releases the COCO-SECOM
mobile security system
2004
Introduces the SECOM AED Package Service

1990

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

2004
Launches the SECOM
Safety Confirmation
Service

2000

2010

1983
1989
Changes name fromDeclares 1989 the first
Nihon Keibi Hosho Co.,
year of the Social
Ltd. to SECOM CO., LTD.
System Industry vision

Safety (“ANZEN”) industry

	Stable, expanding
earnings
	High marginal rate of
return	Resources to facilitate
active investment ingrowth2012
Acquires all outstanding shares in Nittan Co., Ltd.,
Japan’s third-largest fire protection services
provider, making the company a consolidated
subsidiary

1964
1981
1966
1975
1962
Established as Nihon Keibi
Provides security
Develops SP Alarm,Commences operation
Introduces My Alarm
Hosho Co., Ltd. Japan’s
services at theJapan’s first on-lineof the world’s first(currently SECOM
first commercial security
Olympic Village
security systemcomputerized security
Home Security),
services provider (nameduring the firstsystem (CSS)Japan’s first home
was later changed toTokyo Olympics
security system
SECOM CO., LTD.)1974
Lists on the Second
Section of the Tokyo
Stock Exchange

A recurring revenue–based
business model

2006
Acquires newly issued shares in Nohmi Bosai, whichbecomes a consolidated subsidiary

1974Forms business alliance with Nohmi Bosai Kogyo Co., Ltd.
(currently Nohmi Bosai Ltd.), Japan’s top provider offire protection services

1970

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

2000
Establishes the Secure Data Center

1994
1978- Overseas security services
Establishes presence in Indonesia
1988
1981
1978
1991
Establishes joint
Establishes joint
Establishes Establishes presence in theventure Taiwan
venture Korea Security
presence in United Kingdom and Malaysia
Secom Co., Ltd.,
System Co., Ltd.
Thailandin Taiwan, its first(currently SI Corporation)
1992
overseas market
in the Republic of Korea
Establishes presence in the(ROK)
PRC, Singapore and Australia

SECOM REPORT 2023

¥1,227.3 billion

1991- Medical services

1983- BPO and ICT services

20

2007
Launches groundsurveying services
using synthetic
aperture radar (SAR)
satellite images

1999
Invests in Pasco
Corporation, aleading provider ofaerial surveying
services

1998
Invests in Toyo Fire andMarine Insurance Co., Ltd.
(currently Secom General
Insurance Co., Ltd.)

1991
Begins providing
visiting nurse
services

Security service industry

Net sales and operating revenue

1998- Insurance services

Note: The bar graph shows net sales and operating revenue
for each fiscal year at the time of announcement.
Figures have not been ­restated. 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 period ended
March 31, 1990, was a transitional four-month period.

1962Core competitive advantages

1999- Geospatial information services

Group strengths

2015
Acquires Asahi Security Co., Ltd.,a leading provider of cash collection
and delivery services, whichbecomes a consolidated subsidiary2022
Acquires Senon Ltd., a provider
of comprehensive security services

2020

2023

2022
Shifted to the Prime Market, owing
to a restructuring of the Tokyo Stock
Exchange’s market segments.

Social System Industry

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

SECOM REPORT 2023

21

SECOM at a Glance

Segment

Security Services

Fire Protection Services

Medical Services

Insurance Services

Geospatial Information
Services

BPO and ICT Services

Other Services

Percentage of
Net Sales and Operating Revenue*1

48.6%

11.9%

16.0%

4.8%

5.1%

10.4%

3.2%

Percentage ofOperating income*2

66.3%

SECOM REPORT 2023

Competitive advantages

On-line security
systems
Static guard services
Armored car services
Merchandise and other• Integrated approach to providing on-line security systems• Solid technological foundation made possible by proprietary research and development configuration• Nationwide network of 2,600 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.*4
Secom Joshinetsu
Co., Ltd.
Asahi Security
Co., Ltd.
Secom plc

7.0%

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

6.4%

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

4.3%

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.

3.5%

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*5

7.9%

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 convenient

4.6%*1 Breakdown is based on consolidated net sales and operating revenue (excluding intersegment transactions) for the ﬁscal year ended March 31, 2023.
*2 Breakdown is based on total operating income for seven segments, prior to adjustment for corporate expenses and eliminations, for the ﬁscal year ended March 31, 2023.

22

Principal Group
companies*3

Principal operations

Nohmi Bosai Ltd.*4
Nittan Co., Ltd.

Secom Medical
System Co., Ltd.
Takshasila
Hospitals
Operating Pvt. Ltd.

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

*3 For more information, please see pages 81–84. *4 Listed on the Tokyo Stock Exchange Prime Market *5 Listed on the Tokyo Stock Exchange Standard Market

SECOM REPORT 2023

23

The Value Creation Process

In addition to promoting business reforms through SECOM DX, we remain committed 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
71,177 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

An integrated portfolio that marshals
diverse businesses
175 Group companies in sevenbusiness areas*2
Operations in 16 countries andterritories overseas

Business model that fuses people
and technologies
Approximately 2,600 emergency
depots in Japan
Around 60,000,000 security sensors
installed at subscribers’ premises

Insurance Services

Geospatial Information
Services

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

Enhancedvalue

Connection

ALL SECOM

Collaboration

Resolution ofsocial issues

Help achieve asociety free fromconcerns

Core strategies
Expand monitoring and security
services
Strengthen overseas operations
Reinforce BPO and ICT services
Improve productivity
Reward stakeholders

Resolution of
ESG-related
issuesPerformance

Knowledge
Illness/aging

Strategies for creating
the ANSHIN Platform

SECOM Group Road Map 2027
Medical Services

Technologies

Close ties with society and a strong
track record
More than 3.7 million security
service subscribers
Over 8.1 million SECOM Safety
Conﬁrmation Service users

Crimes/accidents

Fire Protection Services

MissionThe SECOMGroup’s Vision for 2030

VisionRealize the Social
System Industry

Material sustainability issues
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)

Naturaldisasters*1 Employees of SECOM Group companies (excluding variable interest entities), as of March 31, 2023
*2 The parent company, consolidated subsidiaries and equity-method companies, as of March 31, 2023

24

SECOM REPORT 2023

SECOM REPORT 2023

25

SECOM’s Core Competitive Advantages

Initiatives to Promote Career Opportunities for Women

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.

Thanks to efforts to expand the scope of jobs available to female
employees and foster female leaders, the number of women inpositions of responsibility is increasing steadily. We also promote
efforts to change the mindsets of female employees and bolster
their motivation, including holding roundtable discussions by afemale outside director. In April 2023, female employees wereappointed to the position of manager at security services offices,which are responsible for the sale, operation and management of
on-line security systems. We interviewed two of these individuals
for this year’s SECOM Report.

A powerful brand• Domestic market-leading 2.5 million-plus contracts for on-line commercial and home security
systems• Robust local network and sales channels firmly rooted in the community and our reputation as apioneer in the security services industry• Ability to resolve customers’ apprehensions underpinned by experience and know-how accumulated
over our history—the industry’s longest—and by the provision of services to a broad range ofcustomers• Brand name synonymous with safety and peace of mind nurtured through the extension of services
that exceed customer expectations• Continuous efforts to promote the improvement and evolution of systems by communicating theopinions and requests of customers to our R&D team
• Open innovation in collaboration with partners who share our mission and are attracted by our strong
brand and domestic market–leading customer base
• Recognition as an industry leader, helping attract talented human resources

A recurring
revenue–based
business model• Businesses that are primarily recurring revenue based, including on-line security systems, and boast
a stable earnings base whereby expanded contract volume leads to increased income• Business model that works well with economies of scale, particularly in on-line security systems,
which boast a high marginal profit• Commitment to ensuring long-term relationships with customers by developing and providing
services and products that surpass their expectations and respond to latent needs• Stable generation of cash thanks to recurring revenue–based businesses, facilitating continuous
investments to improve quality and functionality, accommodate new contracts and drive future growthGroup strengths• Efforts to boost per-customer income by addressing 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• Determination to strengthen relations with customers and extend contract periods by encouraging
use of multiple Group services• Focus on fortifying cooperation within the Group, yielding distinctively SECOM services and crossselling opportunities, thereby streamlining sales activities• Steady investment in M&As with the aim of further reinforcing Group strengths

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 2,600
across Japan)

2
Alert SECOM
emergency
response
personnel

26

SECOM REPORT 2023

An Evolving
Recurring Revenue–BasedBusiness Model

Alert using
telecommunications
circuits

SECOM
Control Center(Major locations
across Japan)

Advanced services thatleverage digitaltechnologies andrespond to market needs

Outside Director Miri Hara (front row, second from left) holds a roundtablediscussion on career building for female employees

Mayumi Shibue, Manager, Neyagawa Office, Osaka
More than four months have passed since I was appointed office manager. In this position, I have more opportunities to meet
directly with customers than ever before. I’m sure some were a bit surprised to meet a female office manager, but I do feel thatmany are pleased and see this as an example of progress for women in accessing higher-level positions.
SECOM seeks to foster a positive, welcoming corporate climate—which we’ve dubbed “futa,” meaning something like “upbeat
and open-minded”—that emphasizes achieving goals with a positive, open attitude. I believe that it is our responsibility, as
senior employees, to pass on the SECOM culture, which emphasizes building character. Sincejoining the Company, I have grown as a person thanks to the support of my colleagues, which
I have come to really cherish. I think that having a variety of viewpoints is crucial to resolving
issues, so I place an emphasis on communicating with everyone at the office and notnaysaying different ways of thinking and doing things.
The work environment at SECOM has improved gradually and female employees today areencouraged to speak up and proactively take on challenges. I recognize that leading boldly
increases the likelihood of mistakes, but I’m a firm believer in failing forward. Mistakes are achance to learn and improve. SECOM promotes such a mindset. It is my hope that my juniorfemale colleagues will take advantage of their unique perspectives to carve out their own
niche going forward.

Kazuko Suzuki, Manager, Nerima Office, Tokyo
SECOM has a fairly strong male image, so I was a bit concerned at first whether afemale office manager would be accepted. Visiting customers, however, has been
illuminating, with many telling me that they find a woman easier to talk to. I’ve beenpleased and impressed with such comments.
Our office has a staff of about 20. I think it’s important to create a work environmentthat is comfortable and positive for everyone. Nobody is perfect, so it is impossible toeliminate errors altogether. I don’t want to inculcate a regimented, assembly-line work
ethic. My focus is on encouraging people to understand why rules exist as a way to
reduce mistakes and improve work quality. I also encourage employees to report their
mistakes and to learn from them.
SECOM’s efforts to promote career opportunities for women are making steady progress, which to me is proof that theCompany is serious about this. Looking ahead, I would like to see the various systems the Company has put in place findbroader use. If more male employees were to take advantage of childcare leave or nursing care leave, for example, I think it
would encourage new perspectives and help change attitudes, thereby creating a supportive workplace culture that makes it
easier for both men and women to continue working.
Regarding career building, I think it is important for women to understand that they don’t have to go all out, to the point ofsacrificing their personal lives, to get ahead. Cooperation is crucial to creating a healthy, rewarding workplace dynamic that
supports everyone’s well-being.

SECOM REPORT 2023

27

Sustainability

Basic philosophy
Since our establishment, we have pursued a basic policy of
striving to contribute to society through our businessactivities, acknowledging the importance of achieving
sustainability both for ourselves and for society.
We continue to promote a variety of initiatives aimed atrealizing sustainability guided by the SECOM Group Basic
Sustainability Policy, which was formulated following
deliberations by the Board of Directors. In October 2022, weformulated the SECOM Group Human Rights Policy tounderpin our efforts to address human rights issues, a
The SECOM Group 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.
December 1, 2021
Ichiro Ozeki
President and Representative Director,
SECOM CO., LTD.

global-scale challenge, and revised the SECOM Group
Environmental Policy.

Framework for promotion
We have established the Sustainability Promotion Office,under the jurisdiction of the executive officer 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 and to the Board of Directors as
appropriate.
The Sustainability Promotion Office also stages the
SECOM Group Sustainability Meeting, which is attended byrepresentatives of key Group companies. Participants
exchange information and hold discussions to advanceinitiatives related to domestic and global social imperatives,
the SDGs, and our response to TCFD recommendations.

Material Sustainability Issues

Process for Identifying Material Sustainability
Issues and Formulating KGIs and KPIs

MissionHelp realize a society free from concerns

Extract issues
Led by the Sustainability Promotion Office, weestablished a working group and extracted material
sustainability issues, that is, issues with the potential toaffect our ability to grow sustainably with society.

Customer-oriented
services

In 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 four categories:“Human rights,” “Labour,”“Environment” and “Anti-corruption.”

Leveraging
advanced
technologies andpartnerships

Coexistencewith local
communities
Creating
services neededby society

Enhancing ourability to adapt
to change andcreate value

Assess the materiality of extracted issues
We plot issues on a materiality matrix, grouping plottedissues to assess the materiality thereof based on trends
in social imperatives, among others.

Identify material sustainability issues

Our efforts to address ESG-related issues and disclose related information continue to earn high marks from third-party
assessment organizations around the world. Of note, we have been selected as a constituent of a number of key global ESG
investment indices. These include all six indices for Japanese equities used by Japan’s Government Pension Investment
Fund (GPIF).**The six 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), the S&P/JPX Carbon Efficient Index and the Morningstar Japan ex-REIT Gender Diversity Tilt Index (GenDi J).
THE INCLUSION OF SECOM CO., LTD., IN
ANY MSCI INDEX, AND THE USE OF MSCILOGOS, TRADEMARKS, SERVICE MARKS OR
INDEX NAMES HEREIN, DO NOT CONSTITUTEA SPONSORSHIP, ENDORSEMENT ORPROMOTION OF SECOM CO., LTD., BY MSCI OR
ANY OF ITS AFFILIATES. THE MSCI INDEXESARE THE EXCLUSIVE PROPERTY OF MSCI.
MSCI AND THE MSCI INDEX NAMES AND
LOGOS ARE TRADEMARKS OR SERVICE MARKSOF MSCI OR ITS AFFILIATES.

SECOM REPORT 2023

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.
With the aim of ensuring we remain an organization thatis useful and indispensable to society, we have identified

six material sustainability issues, that is, issues of primary
importance to sustainable growth, based on a selfassessment conducted in accordance with ISO 26000, theInternational Organization for Standardization’s benchmark
for social responsibility, and the Global Reporting Initiative(GRI)’s GRI Standards (global standards for sustainability
reporting), and with consideration given to feedback fromstakeholders. We have formulated KGIs and KPIs for each ofthese material issues to encourage deeper understanding
and promote their incorporation into individual businessstrategies Groupwide.

Support for the UNGC

Earning selection for inclusion in ESG investment indices28

Material sustainability issues and KPIs

Decarbonization
and a recyclingbased society

Solidifying
our operating
foundation ofsociety’s trust
Fair corporate
activities and respectfor human rights

Employee selfrealization anddiversity

On the basis of deliberations conducted by the working
group, material sustainability issues are identified. These
are reported to the Board of Directors by the director in
charge to be approved.

Formulate KGIs and KPIs for each issue
The working group sets KGIs. KPIs designed to ensure
achievement thereof are considered by pertinent
departments and final proposals for KGIs and KPIs aredeveloped. These are reported to the Board of Directors
by the director in charge for discussion.

SECOM REPORT 2023

29

KGIs and KPIs for Material Sustainability Issues

Scope of targets: SECOM CO., LTD. and its consolidated subsidiaries (“Achieve carbon neutrality by 2045”), SECOM CO., LTD. (all other KGIs)

The Sustainability Working Group held repeated discussions on their ideal image of SECOM from along-term perspective and established KGIs for the six material sustainability issues. More in-depth
discussions were held with the goal of clarifying what actions will be necessary to achieve these KGIs,
which were then narrowed down into KPIs for each individual issue. We carefully manage progress
toward the achievement of KPIs for each material issue and make use of the Plan–Do–Check–Act(PDCA) cycle to evaluate sustainability initiatives promoted.
Material sustainability issues

Customer-oriented services

1*1 Crime prevention rate: Indicator SECOM uses to measure progress toward achieving zero intrusions or thefts for subscribers*2 Response rate: Percentage of calls answered, excluding calls disconnected by the customer within ﬁve seconds*3 Cumulative total from 2021 through 2030
*4 Limited to security equipment developed by SECOM*5 Electric vehicles: Hybrid vehicles (HVs), plug-in hybrid electric vehicles (PHEVs), battery electric vehicles (BEVs) and fuel-cell vehicles (FCVs)

KGIs

Targets

Target years

Crime prevention rate* for intrusions and thefts

100%

2030

Response rate*2 to telephone calls from customers

96%

2026

“Peace of mind” score in surveys of SECOM Home Security subscribers

100%

2030

News reports on research achievements that contribute to peace of mind for society

30/year2030

Development/announcement of new systems and services that are ﬁrsts in Japan*3

Cumulative total:
10

2030

Number of veriﬁcation tests conducted together with other companies, local governments,
educational institutions and others*3

Cumulative total:
100 (10/year)

2030

10%

2030

Training hours/person

50 hours/year

2030

Paid leave usage rate

80%

2030

Female managers as a percentage of total management team

30%

2030

Gender pay gap

85%

2030

Percentage of male employees taking childcare leave

50%

2025

Earn recognition in society as a company that
protects human rights

Percentage of employees completing human rights and harassment prevention e-learning
programs

100%

AnnualCreate an open organization in which
employees can act autonomously

Contributions to lifesaving, fraud prevention and other initiatives(Commendations received from the president or a division head)—

AnnualDecrease in greenhouse gas emissions from the ﬁscal year ended March 31, 2019

45%

2030

Renewable energy as a percentage of total energy used

100%

2045

EVs* (excluding special vehicles) as a percentage of total business vehicles

100%

2030

BEVs and FCVs (including motorcycles) as a percentage of total business vehicles

100%

2045

Virgin plastics derived from fossil resources as a percentage of total materials used incontainers and packaging*4

0%

2030

Plastics derived from fossil resources as a percentage of total materials used in containers
and packaging*4

0%

2045

Participants in child safety workshops (DVD teaching materials)

100,000/year

2027

Annual visits to SECOM’s safety awareness websites

5,000,000 page
visits2027

10/yearAnnual

40,000/year2030

Aim for zero loss of life or property

KPIs
1

Aim for zero customer concerns

Leveraging advanced technologies
and partnerships
Continue to create “Japan-ﬁrst” services thatdeliver safety and peace of mind

2

Percentage of security equipment requiring no installation*4

Employee self-realization and diversity

3

Realize job satisfaction for employees andcreate employee-friendly workplaces
Achieve active participation for human resources
by capitalizing on diversity

Fair corporate activities and respectfor human rights

4
Decarbonization anda recycling-based society
Achieve carbon neutrality by 2045

55Realize a circular economy

Coexistence with local communities

6

Earn society’s trust as a company that
contributes to the safety of local communities

Partnerships with local enterprises (business collaboration, joint participation, cooperation)
Participants in AED training sessions

Note: Results for the ﬁscal year ended March 31, 2023, are scheduled to be posted on the SECOM website in November 2023.

30

SECOM REPORT 2023

SECOM REPORT 2023

31

SECOM TodayBusiness summary

Security Services

Net sales and operating revenue(In billions of yen)

558.1

566.7

600.3

A distinguishing feature of our security
services business is that it primarily
consists of recurring revenue–based
services, that is, services based onlong-term contracts. The initial
contract period for our mainstay
on-line security systems, for example,
is five years, after which the contract
is renewed automatically every year.
Our provision of on-line security
systems includes around-the-clockmonitoring for intruders, fires or otherirregularities by SECOM control center
staff via telecommunications circuits
linking the control center with security
equipment installed at the subscriber’s
premises. In the event an irregularity
is detected, control center staff swiftly
appraise the situation and issue
instructions to emergency response
personnel at a nearby SECOM
emergency depot, who race to thesubscriber’s premises. If necessary,
the police and/or fire department arealso notified.
Our ability to deliver seamlesspeace of mind reflects the fact that
we maintain security equipment inpeak operating condition and extend

On-lineSecurity Systems
2021

2022

it to subscribers on a rental basis. We
take responsibility for all aspects ofour security services, from R&D
through to equipment manufacturing,security planning, installation, aroundthe-clock monitoring, emergency
response services and equipment
maintenance, guaranteeing
exceptional quality and reliability.
A half-century of providing
community-focused services
underpins our ability to accurately
ascertain customers’ wishes and offer
the optimum solutions to their needs
for safety and peace of mind. This has
led to the steady expansion ofcontracts for our on-line systems inJapan. At present, contracts forcommercial and residential security
systems number more than 2.5
million, and we continue to enjoy theleading share of the domestic market.
We have continued to leverage our
extensive experience and expertise,accumulated over our long history ofextending services to a wide range ofsubscribers, as well as to hone thethree components of our operating
foundation, namely, our technologicalprowess, human resources, andConfirm security status/adjust system settings

113.4
101.1

Commercial

Police Dept.

109.4

2023

(As of March 31, 2023)

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

Subscriber

SECOM
3 Dispatch
emergency response

2022

Contracts for On-line
Security Systems in JapanSECOM 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.

using
1 Alerttelecommunications
circuits

personnel

2021

Technological prowess
Our R&D configuration comprises the
SECOM Intelligent Systems Laboratory,
which conducts research into new andcore technologies, and the SECOM
Development Center, which capitalizes
on research achievements to develop
highly reliable equipment and systems.
In addition to analyzing socioenvironmental changes and trends in criminal
activity, our R&D team ensures that theinvaluable opinions and needs ofsubscribers communicated to oursales staff, emergency response
personnel and other employees in thecourse of their work are reflected in
swift and precise adjustments that

Home

Flashing light(In billions of yen)

SECOM control center

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

2023

Operating income

operational and control structure. Suchefforts continue to ensure high-grade
on-line security systems.

SECOM
Emergency
Depot

2

Alert SECOM
emergency
response personnel

SECOM
Control
CenterFire Dept.
Gas
Company

Alert emergency
services asnecessaryService industries

6.8%

Financial services

6.0%

Retailing/wholesaling

3.4%

Manufacturing

3.1%

Government agencies

2.9%

Other

16.8%

Residences (excluding
condominiums and apartments) 38.1%

further bolster the quality of ouron-line security systems.
Given the astounding pace oftechnological evolution, along within-house development we are actively
promoting open innovation withvarious partners with the aim ofswiftly creating services more
precisely tailored to society’s needs. In
July 2022, we opened HARAJUKU 3rd
Place, a base for related initiatives, at
our corporate headquarters in Tokyo.
At this new facility, we will focus on
pursuing and acquiring cutting-edge
digital technologies and promoting
practical collaboration, both within the
SECOM Group and with outside
partners, in a freer, more flexible andincreasingly concrete manner.

HARAJUKU 3rd Place

Human resources
We recognize that our people are
our most valuable management
resource and are essential to building
a robust organization and offeringhigh-grade services. In Japan, training
for new recruits, emergency response
personnel, sales staff, administrative
staff and other employees isprovided at three training centers. Thisguarantees that all employees fully
understand SECOM’s Philosophy andobserve a code of conduct befitting
security professionals, and equips
them with specialized knowledge andtechnical skills.
Operational and control structure
We have created a proprietary,
networked operational and control

structure that facilitates the effective
operation of our on-line security
systems across the country. This
structure focuses on control centers
staffed by experienced individuals whomake meticulous assessments andissue instructions, dispatching
emergency response personnel fromone of its approximately 2,600
emergency depots across Japan,
thereby ensuring our ability to extend
swift, accurate services.

Operating highlights
Commercial security services
We provide an extensive lineup of
security services, centered on on-line
security systems, for commercial
subscribers. In recent years, such
systems must not only offer monitoring for irregularities, such as intruders
and fires, but also respond to growing
needs for around-the-clock support for
subscribers’ business activities. In
addition to boosting contract volume,
we continue to focus on quality, that is,on responding flexibly and attentively
to the concerns of subscribers byextending high-value-added services
suited to the scale and circumstancesof their facilities.
The highly scalable System Security
AZ and System Security AZ-Air
System Security AZ is an all-in-one
on-line security system for commercial facilities that helps manage risks
by preventing crime and fires, as wellas improves work efficiency by facilitating the management of employee
attendance, among others. Thissystem allows users to confirm
security status, and to arm or disarm
the system, remotely using a dedicatedsmartphone app, earning high marks
for convenience and ease of operation.
AZ can also be integrated with the
SECOM Cloud Video Surveillanceservice, making it easy for users to

Condominiums and apartments 22.9%

32

SECOM REPORT 2023

SECOM REPORT 2023

33

SECOM Today: Security Services

record and confirm surveillancecamera images in the cloud to confirm
conditions on the ground. This highly
scalable system can be installed at
locations ranging from offices andstores to large-scale buildings andproduction facilities.
In July 2022, we began offering
System Security AZ-Air, a system
optimized for small and mediumsized offices, retail facilities andrestaurants—where aesthetics are an
important consideration—featuring
a downsized controller that can beconnected wirelessly to a wide rangeof sensors. AZ-Air allows users tocheck security status and operate thesystem using a dedicated smartphoneapp. Live video from SECOM IP
Camera surveillance cameras canalso be checked from the controller, asmartphone or a tablet.

maximum of 120,000 users in realtime. AZ-Access’ ability to centrally
manage as many as 1,000 individual
locations makes it the ideal choice fororganizations with numerous branches
or sales offices.
In addition to contactless IC cards,
AZ-Access supports biometric authentication using finger vein, facial and irisrecognition. Sensors installed at thesubscriber’s premises can be
managed from the on-site disasterprevention center, while subscribers
can also take advantage of on-line
monitoring and the dispatch of
emergency response personnel in theevent an irregularity is detected.
AZ-Access can be integrated withfacility management systems, including air conditioning, lighting,broadcasting and elevators, and withpersonnel management systems,
bolstering their efficiency.

safe viewing of images captured on
a computer, tablet or smartphone
to, for example, check the state ofdisplays or whether the facility has
been cleaned, and can also be used
as a communication tool to share
information, including instructions
for facility staff and messages, aswell as to enhance efficiency for chain
store supervisors and assist in the
management of unattended facilities.
Linking dot-i with AZ series systemcameras and paying a monthly fee
reduces initial investment andadditional communications costs, andsimplifies
operation.
pp

dot-i web-based management system

Home security services

System Security AZ-Air

The AZ-Access access control system,
which can be used in large-scale
facilities
In May 2023, we launched AZ-Access,an access control system tailored to
the needs of subscribers withlarge-scale facilities or multiple
locations. Based on the all-in-one
System Security AZ and incorporating
customers’ wishes, AZ-Access brings
together our accrued expertise inaccess control systems. In addition tofacilitating the remote control of
security for up to 2,000 entry/exit
points and 1,600 zones, this system
has the capacity to confirm information on, manage authority granted toand confirm usage status for a

34

SECOM REPORT 2023

AZ-AccessRelease of dot-i web-based
management system for retailfacilities
We continue working to expand
SECOM Business SaaS, an offeringthat supports subscribers’ operations
by linking a system in the AZ series
with various open cloud services.
With the goal of improving operational
efficiency and service quality forretail facilities, in July 2023 wereleased dot-i, a web-based service
that uses images captured by an
AZ series system’s cameras, which
was developed in collaboration withan IT firm. This service allows the

SECOM Home Security has expanded
beyond essential security functions
such as crime and fire prevention, andthe sending of alerts when irregularities are detected, to include optional
services such as monitoring for gas
leaks, medical emergency calls, andmonitoring and confirming the safety
of individuals. In addition to a compact
home controller with an easy-to-use
touchscreen LCD, SECOM Home
Security NEO can be armed or
disarmed remotely from a smartphone
and features an automatic notification
function that allows subscribers to

SECOM Home Security NEO

receive alerts on their smartphonewhen someone leaves or enters thehome. The system can further beconnected with devices on the IoT.
Subscriptions to SECOM Home
Security NEO have risen steadily since
its release in 2017.
High marks for Apple Watch andiPhone app
SECOM Cantabile, an app that enables
subscribers to operate their SECOM
Home Security remotely from an Apple
Watch or an iPhone, has earned solid
support since its introduction in
February 2022. This app alerts
subscribers to either arm or disarm
their security system when they are acertain distance away from home
simply by tapping the icon. SECOM
Cantabile also stores Apple Watch
health data, including calories
expended, steps taken, sleep time andblood oxygen level to create a “healthreport” that subscribers can use ineveryday health management.
Expansion of monitoring services forseniors and their families
We continue to expand our lineup ofmonitoring services tailored to various
age groups in response to growing
needs for safety and peace of mind
in Japan’s super-aged society. The
SECOM Monitoring Service for Seniors,offered as an option to SECOM Home
Security subscribers, uses sensors
installed in the entryways, windows
and interior of seniors’ homes. If no
movement is detected for a set periodof time, an alert is sent to SECOM.
Family members living apart canuse a dedicated smartphone app toconfirm daily rhythms and activity
levels (i.e., how many times sensors
detect movement), enabling them tokeep watch in an unobtrusive manner.
If, for example, family members
are concerned about a parent’s

well-being, they can use the app
to request the dispatch of SECOM
emergency response personnel for anin-person check.
In April 2023, we began providing a
new Apple Watch and iPhone app,
YORiSOS, as a SECOM Home Security
option. If a subscriber senses danger
or feels unwell, they can use the app tosend an emergency alert and request
emergency assistance. YORiSOS can
also be linked to the Apple Watch’s falldetection feature to notify SECOM
should a serious fall be detected. In
addition, the app uses Apple Watch
and iPhone health data to assist witheveryday health management, issuing
a SECOM Assist Report in the event anissue, such as an irregular heartbeat, a
hard fall or a decline in walking
stability, arises, encouraging thesubscriber to seek prompt medical
attention or take other steps.

YORiSOSIntroduction of communication
services for seniors designed toalleviate loneliness
As the aging of Japan’s population
leads to an ever-greater number ofseniors living alone, needs are
increasing for measures to counter
risks associated with a decline inopportunities to converse with othersin everyday life. In April 2023, we
introduced anone, a communicationand conversation service for seniors
that uses BOCCO emo, a communication robot, fostering engagement andhelping seniors feel connected.
Conversations are transmitted inrecorded and text form to thesmartphones of family members.
Family members can also send
messages to the user.
Looking ahead, we will continue
working to help improve the quality oflife of Japan’s seniors by bringing
together our experience, theknow-how of partner companies andnew technologies to help alleviate
feelings of isolation in seniors.

anone communication service

Other security services
Efforts to ensure the safety of the G7
Hiroshima Summit
For three days in May 2023, theleaders of the Group of Seven (G7)gathered in Hiroshima for the G7’sannual summit. We extended SECOM
Aerostat dirigibles and SECOM 3D
Security Planning for use by the local
police department. SECOM Aerostat
dirigibles were moored over Grand
Prince Hotel Hiroshima, the summit
venue, as well as the Miyajima
area, home to Itsukushima Shrine,a National Treasure of Japan anda World Heritage Site, which was
visited by participating global leadersand other officials, with images
produced by attached cameras usedin security checks at both locations.
A cloud-based version of SECOM 3D

3D map of the G7 Hiroshima Summit venue
and its environs

SECOM REPORT 2023

35

SECOM Today: Security Services

Security Planning currently underdevelopment by SECOM Groupgeospatial information services
company Pasco was also provided togenerate high-precision 3D mapping
data for use in the preparation of theevent’s security plan.
COCO-SECOM: High marks for linkwith smartphone
Location information system
COCO-SECOM is used for a broad rangeof purposes, including confirming thewhereabouts of employees working
outside the office and valuables,
preventing the theft of vehicles, finding
missing children and seniors, andsending emergency alerts.
In response to alerts sent from
COCO-SECOM transmitters, or torequests from family members,in the event of an emergency, theCOCO-SECOM operations center
promptly dispatches emergency
response personnel. A dedicatedsmartphone app makes it possible tonotify a designated smartphone when
an individual carrying a transmitterleaves home, or enters or exits a
specific area, or when a vehicle fittedwith an onboard transmitter moves

unexpectedly. Going forward, we willcontinue to capitalize on know-how
accumulated over more than two
decades providing COCO-SECOM todeliver safety and peace of mindby helping customers address avariety of challenges, from resolving
issues affecting their businesses tomonitoring individuals.

Overseas security services
Extension of services in 12 countries
and territories
We made our overseas debut in 1978,
when we established a presence in
Taiwan. Today, our overseas security
services business encompasses
operations in 12 countries and territories, through which we extend diverse
services and products, notably on-line
security systems with emergency
response services, customized toreflect local market needs.
Publicly listed Taiwan Secom, thelargest security services company in
the Taiwanese market, offers a broad
lineup of services and products,
ranging from home security to safety
management systems for large-scale
facilities. The company is working
actively to incorporate newtechnologies by, among others,
introducing security that uses
wearable cameras and developing
smartphone apps, with the aim of
improving services.
Operations in the ROK are
spearheaded by S1, which is also
publicly listed and the leading
company in the local security services
market, and include the provision of awide variety of security services andbuilding solutions, centered on on-line
security systems. S1 continues togarner praise from customers for its
swift emergency response services,which it extends through a networkof approximately 750 emergency
depots, underscoring growth insubscriber numbers.
We have created an extensive
security services network in the PRC
encompassing bases in 24 coastal andinland 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 and Vietnam

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

COCO-SECOM
Operations
CenterRequest forsearchPositioning
information

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

Cellularphone
basestation

SECOM REPORT 2023

SECOM
Emergency
Depot

Policedepartment,
emergency
services

COCO-SECOM Transmitter
Device (vehicle-mounted)

COCO-SECOM Transmitter
Device (portable)

36

Notification of police(if warranted)

COCO-SECOM transmitter
Dispatch emergency
response personnel(if requested)focus on on-line security systems,
local acceptance of which continues
to grow.
We also continue to see increased
contract volume in Turkey, where ourdiverse array of security services
includes safety management systems
for various customers. In 2021, we
opened an R&D facility in the country
that is devising systems that makeextensive use of IT.
Having set forth a policy of
being the leading provider ofpremium security services tailoredto advanced needs in Australia, we
extend high-grade services, suchas large-scale systems integration,
to customers across the spectrum,from prominent financial institutions
and large commercial facilities togovernment agencies. In New Zealand,
we extend security services, as well as
maintenance and inspection services.
Our high-performance surveillancecamera systems enjoy particularly
solid support from customers
ranging from major supermarkets tofinancial 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 thetrust of government agencies, andof leading financial institutions andmajor corporations.
Expansion of operations in growing
markets
We recognize that strengthening ouroperations in promising overseas
markets is essential to ensuring
sustainable growth. We are working
to accelerate the proliferation ofservices—particularly in Asia, which ishome to rapidly growing wealthy andmiddle classes—by creating services
that better reflect local market needs,
promoting the active hiring andtraining of local staff, and stepping
up marketing to raise awareness of
the SECOM brand. Through these andother efforts, we continue striving toincrease the percentage of consolidated net sales and operating revenue
accounted for by overseas security
services to more than 10%.
In the United Kingdom, Thailand,
Singapore, Malaysia, Indonesia andVietnam, we have introduced acloud-based interactive security
system that enables operation and theconfirmation of images using asmartphone app, which enhances userconvenience. We are also working to
expand availability to other countries
and territories.
At the China Innovation Center, inShanghai, and the ASEAN Innovation
Center, in Bangkok, we are striving todevelop systems that respond tomarket needs by incorporating
advanced technologies, and to foster
highly skilled engineers. We areadvancing the development of a highly
convenient security system that
employs smartphones, as well as aplatform for the digitization of security
services that is scheduled for launchin the PRC and in Southeast Asia.
In Thailand, we are analyzing
accumulated customer data toformulate optimal proposals, thereby
improving the effectiveness of sales
activities. This is not only helping boost
customer satisfaction, but also
contributing to sales in that country. In
addition, we have kicked off anadvertising and publicity campaign,

featuring television, web and outdoor
advertisements, to bolster recognitionof the SECOM brand, an initiative that
had led to a steady increase insubscriptions.
In another initiative, we haveestablished a business development
project team with the objective ofbuilding a foundation for new growthand leveraging synergies by promoting
business alliances and M&As overthe medium to long term to expedite
the expansion of our overseas
operations. In May 2023, we madeinvestments by way of a third-party
allotment in cloud-based physicalsecurity services providers Eagle Eye
Networks and Brivo, which extend
solutions primarily in North America.
These two companies are the U.S.
leaders in VSaaS*1 and ACaaS,*2 two
growing areas of the security services
market. We look forward to leveraging
the advanced technologies andunique solutions of both companies
to drive the evolution of our services
and systems.
By further popularizing our distinctively SECOM security services in the
countries and territories in which we
operate, and by capitalizing on
opportunities in new geographic andbusiness areas, we will also seek toestablish ANSHIN as a universally
recognized term synonymous withpeace of mind.
*1 VSaaS enables users to access, manage andanalyze video surveillance information in
the cloud.
*2 ACaaS enables users to control and manage
on-premises access control devices in
the cloud.

SECOM provides interactive security services in ASEAN member states

SECOM REPORT 2023

37

SECOM Today: Fire Protection Services

Operating highlights

Fire Protection
Services

This segment centers on the operations of Nohmi Bosai and Nittan, twoleaders in Japan’s fire protection services market, which have established
an integrated service configurationencompassing everything from R&D
to system planning, manufacturing,
installation and maintenance.
This enables the companies toprovide comprehensive fire protection
systems—including automatic
fire alarms and fire extinguishingequipment—tailored to customer
needs for a wide range of applications,such as office buildings, production
facilities, tunnels, cultural properties,
ships and homes.
As well as striving to secure orders
for new buildings, Nohmi Bosai andNittan respond to replacement
demand in the renovations market bydrawing on their wealth of experienceand the trust of customers to propose
and extend the most appropriate
systems for newly renovated facilities.

Net sales and operating revenue(In billions of yen)

143.9

152.1

148.8

2021

2022

2023

Operating income(In billions of yen)

13.1

2021

Relocation and rebuilding of the
Mitaka Factory to bolster productivity
Owing to the aging of its existing
facility in Mitaka, Tokyo, in operation
since the company’s establishment
in 1944, and to address a lack ofspace attributable to rising production
volume, Nohmi Bosai relocated to a
newly built factory in a neighboringarea that commenced operation inJune 2022. The new Mitaka Factory
boasts a total floor area of around

Addition of two new scenes to
Immersive Fire Experience VR:
Panic in the Office
With the aim of increasing people’s
motivation to hone their fire prevention
know-how and skills, and to participate
in fire drills, Nohmi Bosai created
Immersive Fire Experience VR: Panic in
the Office, a virtual reality training program, in collaboration with a gamesoftware producer, for rental to customers together with equipment.
Incorporated into fire prevention training and in-house events by companies
and other organizations, this program
uses realistic movement and sound toconvey the confusion that can be experienced by people caught up in a fireand ensuring a firm grasp of how hazardous and frightening a fire can be.
The program has also earned praisefor instilling awareness of the importance of acting without hesitation whena fire occurs or a fire alarm sounds.
In response to requests from users,in July 2022, Nohmi Bosai enhanced
Immersive Fire Experience VR: Panicin the Office by adding two new scenesthat presume the occurrence of amajor earthquake and show correct
behavior inside the office during

evacuation and outside the office once
evacuation is complete. In addition to a
two-day rental plan, which can beextended to a maximum of five days,
the company introduced a one-monthplan and a two- to six-month plan, withthe objective of helping bolster awareness of fire prevention among anever-greater number of people.
Consistently robust sales of
B Catch Now
Nittan’s B Catch Now is an indoor location information system that makes it
possible to locate people, items andfires in real time using a smartphone.
Since its launch in April 2020, applications for the system have expanded. B
Catch Now has also been designatedas an IT tool the introduction of which
qualifies for the IT introduction subsidy
2023 implemented by the Ministry of
Economy, Trade and Industry.
The B Catch Now system uses
signals from sensor beacons installedinside fire detectors to pinpoint thelocation of people and items indoors,
where Global Positioning System (GPS)and other radio signals cannot reach.
On an everyday basis, the system canbe used to confirm the presence of,and make contact with, people working
in an office, as well as to check
whether conference rooms are being
used, and collect and analyze data on
personnel allocation, workplace flowlines and working times, with the goalof improving how tasks are performed.
In the event of a fire, an immediate

notification is sent displaying the positions of fire extinguishers and hydrants,
indicating emergency exits and confirming the status of evacuation efforts,
and information is provided to the fire
department to assist first responders.
B Catch Now has found further
application in medical and long-termcare facilities, with beacons attached
to equipment and fixtures to prevent
misplacement, as well as to optimize
management and deployment. In production facilities and warehouses, thesystem can be used to ascertain where
employees are in different site buildings, monitor entry into hazardous
areas, and manage heavy machineryand other equipment.
Going forward, Nittan will strive tosupport the efforts of its customers to
improve their operations by proposing
the deployment of B Catch Now, arecurring revenue-based system, inincreasingly diverse situations. In addition, the company will build on the
success of this system to date to add
linkability to devices on the IoT and to
expand the range of services offered.
Assisting with fire protection training
in Cambodia and Vietnam with theaim of growing overseas operations
Nittan, which also manufacturesand sells fire protection systems in
the United Kingdom and Vietnam,
accepts requests for assistancewith the provision of fire protection
training from numerous countries
and territories, bolstering awarenessof the importance of fire protection
equipment and contributing to theimprovement of firefighting systems in
multiple markets.
In November 2022, in an initiative
sponsored by the Japan International
Cooperation Agency (JICA), a team ofinspectors from Cambodia’s Ministryof Land Management, Urban Planningand Construction, visited Nittan’shead office showroom. Here they
were given the opportunity to try awide range of actual Nittan products,
including SPERA fire alarm control
panels, which comply with standards
set by UL LLC in the United States, fire
detectors, the VS Sprinkler system and
B Catch Now. The inspectors rated theexperience highly, saying it had greatly
deepened their understanding.
In February 2023, as part of acollaborative effort between Japan
and Vietnam in the area of firefighting,Nittan Asean Co., Ltd.’s production
facility in Vietnam was visitedby approximately 30 individuals,
including officials from the country’s
Fire and Rescue Police Department.
Participants in the visit, which wasorganized with the aim of improving
Vietnam’s ability to inspect fire protection equipment, listened intently to
explanations of production processes
and ideas for enhancing efficiency.
Nittan will continue to actively promote
efforts to contribute to local communities to encourage the expanded adoption of its high-grade fire protection
systems in markets around the world.

14.5
11.6

2022

2023

Beacon for installation
inside a fire detector
Nohmi Bosai’s new Mitaka Factory

38

10,000 m2, five times the size of its
predecessor. The company is taking
further steps to improve productivity
by introducing production methods
suited to individual products, improving work environments and optimizing
flow lines.

SECOM REPORT 2023

Immersive Fire Experience VR: Panic in the Officeallows people to experience evacuating in thewake of a major earthquake (Nohmi Bosai)

Tag beacon

Beacon receiver

B Catch Now indoor location information system smartphone app and sensor beacons (Nittan)

Inspection of fire protection equipment
at Nittan Asean’s production facility

SECOM REPORT 2023

39

SECOM Today: Medical Services

Operating highlights

Medical Services

Net sales and operating revenue(In billions of yen)

182.8

2021

196.1

2022

196.5

2023

In the belief that the ultimate expression of our commitment to deliveringsafety and peace of mind is the provision of services that protect healthand life, we have created a medical
services business that focuses oncustomers who feel anxious about
their health. This business comprises
four categories: medical care, personalcare, healthcare and preventative
care, and ICT-based medical services.
We also continue to make use of
ICT to create seamless, integrated
community-based healthcare models
encompassing support for affiliatedmedical institutions and the extensionof a variety of services, home nursing,
pharmaceutical dispensing, personalcare, and health and preventative care.

under the direction of his or her
primary physician. Pharmaceuticaldispensing services include fillingprescriptions at a pharmacy and delivering needed medications and medical
supplies—such as infusion pumps, aswell as infusion lines and syringes forhome parenteral nutrition (HPN), whichis administered via a central venous
catheter—and medical hygiene
products to patients receiving medical
treatment at home.
Our support for affiliated medical
institutions centers on 21 partner
hospitals and clinics in Japan providing high-level acute care, convalescentrehabilitation and long-term care. We
also strive to help reduce costs andimprove efficiency for affiliatedMedical care services
Our medical care services began withthe launch of home nursing services
and pharmaceutical dispensing
services, both of which assist in theprovision of home medical care. Home
nursing services focus on dispatching
visiting nurses from our nationwide
network of 34 visiting nurse stations tooffer expert medical treatment andnursing care in the patient’s home

Sakra World Hospital

Personal care services
This category includes visiting
personal care services and outpatient care services (adult day care),as well the management of comprehensive home personal care services
centers. We also operate residences
for seniors, bringing together
our expertise in the provision of
security, medical care and personalcare services.
Health and preventative care services
Maintaining and improving health,and enhancing quality of life, arecrucial in protecting against illness
and the need for personal care.

Medical Care Institution
Physician’s guidelines

Operating income

Coordination
Home Nursing
Services

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

Consultation
3.9

40

2022

SECOM REPORT 2023

2023

Patient

Vitalook collects home medical carepatients’ vital sign data (i.e., pulse,
blood pressure, body temperatureand electrocardiogram results) andstores it at a SECOM data center,enabling physicians and nursing staff
at contracted medical institutions toreview such data in real time and issue
appropriate instructions remotely.
The acceleration of DX is giving riseto new needs in the area of medicalcare. In response, we are hastening
development aimed at facilitating
the effective deployment of SECOM
Vitalook within hospitals. We are
striving to address the medical information needs of medical institutions
by extending SECOM SMASH, ahospital management information
analysis system.
Looking ahead, we will continue toexpand our ICT-based medical
services, crucial to safety and peace ofmind, with the goal of supporting
medical care and personal care in asuper-aged society while at the sametime exploring the provision of suchservices in markets around the world.

Remote monitoring ofpatient’s condition
by healthcare professionals
SECOM
data centerCollection and storage of vital sign data

Patient’s
deviceAutomatic alerts
Video calls

Prescription
Pharmaceutical delivery

2021

ICT-based medical services
We extend a variety of unique
networked services for hospitals andclinics. These include high-grade offerings that make use of our secure information network, such as cloud-based
medical reporting services and SECOM
LINKus, which allows informationentered into electronic medical
records to be stored at a SECOM data
center and shared among medical
professionals. Our Hospi-net remote
image diagnosis support service
supports the efforts of physicians todiagnose patients by providing
topnotch medical imaging reports byhighly experienced radiologists withdiverse specialties.
Capitalizing on expertise andmanagement resources accumulated in home medical care and in
the provision of support for affiliatedmedical institutions, we also offer
the SECOM Vitalook remote medicalcare support platform. SECOM

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

Nurse’s report(In billions of yen)

13.6

We support health management
through, among others, the operationof the membership-based SECOM
Health Care Club KENKO and theprovision of telephone-based healthconsultation services.

SECOM

Home Medical Services
Prescription

medical institutions by selling andrenting medical equipment, andthrough the joint purchasing andmanagement of pharmaceuticals. In
addition, we operate Sakra World
Hospital in Bengaluru, India, a general
hospital with 307 beds. This facility’s
medical care system, developed basedon medical services know-how fromJapan, and staff who offer attentive,
advanced care, continues to be highly
rated, underpinning steady growth. We
are currently planning to establish asecond hospital in India.

Nurse visit
Outpatient care

Display of pertinent data

Contracted
hospitals

Relatedorganization

Sharing of information with related organizations

SECOM REPORT 2023

41

SECOM Today: Insurance Services

SECOM Today: Geospatial Information Services

Operating highlights

Insurance Services

Net sales and operating revenue(In billions of yen)

61.4

2021

54.9

2022

61.9

Providing both security services, which
are preventative by nature, andnon-life insurance services, which lookafter people should misfortune strike,is crucial to our ability to deliver
seamless safety and peace of mind. A
key feature of our insurance services
business is that we leverage theresources of the SECOM Group to offer
distinctive insurance products that
support the daily lives and commercial
endeavors of our customers.
Expanding subscriptions to the
MEDCOM cancer treatment policy
MEDCOM is a pioneering indemnitybased cancer treatment policy
developed to enable subscribers to
pursue the most effective cancer treatment available. In addition to unlimited
coverage for all inpatient hospitaltreatment, including private care,advanced care and care covered bypublic health insurance, MEDCOM
covers outpatient treatment up to ¥10
million per five-year period. This
allows subscribers to concentrate on
treatment without having to worry
about the economic implications
thereof, driving the steady expansionof subscriptions.

2023

Operating income(In billions of yen)YouTube video introducing MEDCOM
https://youtu.be/LKelWmxZcXU

9.3

2021

8.5

2022

7.1

2023

SECOM Anshin My Car: Backed byon-site support from emergency
response personnel
SECOM Anshin My Car is an automotive
insurance policy that offers aroundthe-clock access to on-site support
from SECOM emergency response
personnel if requested. This policy’s
customer-focused assistance, which
also includes emergency response
personnel contacting the police andambulance, confirming the seriousness of the accident and photographing the site, continues to earn highmarks from customers.
Fire insurance policies with discounts
for subscribers who have installed
security systems
Residential fire insurance policy
SECOM Anshin My Home features adiscount on premiums for subscribers
who have installed an on-line home
security system in recognition of thefact that such systems reduce the riskof theft and fire. The Security DiscountFire Policy, for commercial premises
such as offices and retail facilities,
gives premium discounts of up to 30%
to subscribers who have installed acommercial on-line security system,
reflecting the risk-mitigating benefitsof such systems, earning high marks
for its reasonable premiums andextensive coverage. Subscriptions
for both of these policies continue
to be bolstered by efforts to propose
fire insurance when introducing
on-line security systems to potential
home and commercial security
services customers. Going forward,
we will continue working to further
expand subscriptions in line with
the increased deployment of on-line
security systems.

Operating highlights

Geospatial
Information Services

Net sales and operating revenue(In billions of yen)

54.1

2021

56.6

2022

62.3

2023

Operating income(In billions of yen)

5.8
4.4

3.9

2021

2022

2023

Subsidiary Pasco collects geospatial
data from sensors mounted on commercial satellites, aircraft, drones,
proprietary vehicles and ships, among
others, which it integrates, processes
and analyzes to provide a variety ofgeospatial information services that
contribute to the resolution of keysocial imperatives. Pasco’s operations
are divided into services for public
sector entities in Japan, which accountfor approximately 80% of segment net
sales and operating revenue; services
for domestic private sector customers;
and support services for developing
countries overseas.
The importance of DX is growing
across all industries in Japan today.
Against this backdrop, Pasco’s measurement and digital technologies are
finding expanded use in numerous
related initiatives, including the national
government’s Vision for a Digital
Garden City Nation, and the Ministry ofLand, Infrastructure, Transport andTourism-led Project PLATEAU 3D citymodel open data endeavor.
Expansion of business aimed at
resolving social imperatives throughcollaboration and the formation ofalliances
Pasco collaborated with a leading U.S.
company in the area of 3D visualization
software to create a Japaneselanguage version of a program that canhandle large volumes of 3D data easily
and at high speeds. We will leverage
this service to further advance the useof 3D data, as well as to diversify its
applications, in multiple industries.
Pasco is also a participant in areal-time hazard map creation working
group established as part of theDisaster Prevention Consortium (CORE),
a group of companies and organizations from a broad variety of industries.
In September 2022, the company
developed an AI analytics model that

can immediately grasp flooding caused
by torrential rainstorms.
Applying advanced technologies tosupport DX
As a company that works to help
address key social imperatives, Pasco
supports DX in diverse industries, inaddition to working to accelerate its
own internal DX initiatives to improvebusiness efficiency and reform work
styles. In November 2022, Pasco’s
efforts to drive DX, including theformulation of a DX vision, as well as
the establishment of related businessstrategies and an internal frameworkfor promotion, earned it recognition asa DX certified company by Japan’s
Ministry of Economy, Trade andIndustry.
In July 2022, the company set up
a new production base in the city of
Niigata to improve processing capacity
for increasingly precise and highdefinition data, as well as to bolster
productivity, while in March 2023 itparticipated in a demonstration test
aimed at promoting DX in managing theoperation of Shurijo Castle Park in
Okinawa and verified the park’s
extended reality (XR)* exhibit commentary, which uses virtual reality (VR)content and 3D data.
*XR is a catch-all term for technologies thatmerge the physical and the virtual world tocreate new experiences.

VR rendering of the rebuilt Shurijo Castle Seiden(main building)VR cross section showing the structure

42

SECOM REPORT 2023

SECOM REPORT 2023

43

SECOM Today: BPO and ICT Services

Operating highlights

BPO and ICT
Services

Secom Trust Systems develops andprovides ICT services that deliversafety and peace of mind, as wellas make life more comfortable andconvenient. At Tokyo operates data
centers that boast outstanding reliability and connectivity. TMJ extends
high-grade contact center, back-officesupport and other BPO services.
Together, these three subsidiaries
offer a broad portfolio of services
that respond to the diverse needsof customers.

Net sales and operating revenue(In billions of yen)

121.9

2021

124.8

2022

138.9

2023

Operating income(In billions of yen)

44

14.5

14.6

2021

2022

SECOM REPORT 2023

13.1

2023

Large-scale disaster preparedness,
information security and cloud-based
services
In addition to overseeing the development and operation of SECOM Group IT
systems, Secom Trust Systems
leverages its superior security androbust Secure Data Center to provide avariety of large-scale disaster
preparedness, information security
and cloud-based 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 majordisaster. The SECOM Safety
Confirmation Service enables
subscribers to swiftly ascertain thesafety of employees and their families,
as well as damage to sites, in theevent of a major earthquake or otherdisaster or the failure of infrastructure.
As of March 31, 2023, this service wasused by approximately 8,800 companies employing around 8.1 million
individuals, making it one of the mostwidely used crisis management
services in Japan. In September 2022,
Secom Trust Systems launched the
SECOM Safety Confirmation Service
Smart Edition, which boasts the same

basic functions at a reasonable price,targeting small and medium-sizedcompanies.
Information security services range
from advance diagnostics and preventative measures, which protect
customers’ information from cyberattacks, to services that help customers deal effectively in the event of anincident, ensuring comprehensive
around-the-clock support. Secom
Trust Systems also extends cloudbased services that contribute toimproved operating efficiency andconvenience, as well as to reduced
costs. These include diverse humanresources technology and document
digitization services. In October 2022,
the company launched SECOM
Passport Plus, which offers trust
services necessary to digitize documents, eliminate traditionally used
official hanko seals, and facilitate safe
and secure non-face-to-face transactions in a single platform. Among key
features of this service are that itcomplies with international standards
for electronic signatures and can belinked with applications from various
vendors and authentication service
providers.
The same month, the company alsobegan offering SECOM Web Sign,
which ensures the safe and hasslefree execution of electronic contracts.
With this service, the identities of thecontracting parties are confirmed
electronically, based on whichelectronic certificates are issued which
the parties use to affix their signatures, providing concrete evidence thatwill hold up in the event of a dispute.
Pertinent customer data is stored in
the company’s Secure Data Center.
Secom Trust Systems will continue tosupport the proliferation of DX byextending services that deliver safety
and peace of mind.

SECOM Web Sign

At Tokyo data center

Data center services
At Tokyo’s highly reliable powersources, earthquake-resistant buildings and superior network infrastructure enable it to ensure uninterrupted
data center services around the clock.
The competitive advantages of AtTokyo’s data centers include connectivity that facilitates access to network
services extended by megacloudservice companies and telecommunications carriers, as well as to overseas
service providers. The company alsooffers the ATBeX (“At Tokyo BusinesseXchange”) on-premises connection
service platform, which supports
communication speeds up to 100
Gbps, allowing flexible connections
with corporate systems, thereby
supporting the expansion of its
customers’ operations.
Recent years have intensified theneeds of companies and local authorities across Japan for closed network
connections to the Government Cloud.*
The decentralization of data centers
has become another key issue fromthe perspective of risk avoidance inthe event of a major natural disaster.
Accordingly, At Tokyo is focusing on
increasing its ATBeX access points,
which simplify connectivity to cloudservice providers, with the aim ofmaking this service platform accessible from anywhere in the country.
The company opened access points
in Fukuoka in October 2022 and in
Hiroshima and Okinawa in April 2023,
and plans to open two additional
access points in Sapporo, beginning inJuly 2023.
In 2024, At Tokyo will launch the
At Tokyo Chuo Center #3 (CC3), whichboasts outstanding accessibility
thanks to its location in central Tokyo,
as well as the connectivity and flexibility that will make it ideal for use as
an urban server farm. At Tokyo willcontinue to contribute to the expansion of its customers’ businesses by
ensuring both zero-downtime operations and adaptable, secure network
environments.
*The Government Cloud is a cloud-based service
environment built and operated by the government of Japan with the aim of realizing the
integration, unification and standardization ofnational and local administrative systems.

BPO services
TMJ provides an extensive selection ofhigh-grade contact center and backoffice support services. These services
have earned high marks from a broad
variety of companies, including
financial institutions.

Among fintech companies, whichleverage information technology torealize new methods of delivery for
financial services, needs have intensified for electronic know your customer(eKYC), which encompasses processes
used for digital identity verification,owing in part to COVID-19. In March
2023, TMJ began offering highly
secure eKYC services, ranging fromintroduction and administration, at the
newly established SleekyC2 eKYC
operations center in Sapporo. The newfacility boasts an outstanding level of
security, made possible by distinctive
SECOM Group capabilities, including
enhanced entry and exit security that
employs facial recognition and login
procedures that use fingerprint
authentication to prevent leaks ofimportant user information, to ensure
one-stop support for everything fromthe construction and installation ofsystems through to actual identity
verification operations.
With the advance of DX in thebusiness arena, small and mediumsized companies are facing challenges
as the use of cloud-based software
fails to yield expected improvements
in operational efficiency. TMJ is focusing efforts on the development of
packaged back-office support services
for such companies by capitalizing
on its wealth of know-how in theextension of BPO services to major
corporations. As a first step, in April
2023 the company began offering aservice called Accounting Standards,
which organizes accounting into six
standardized procedures and allows
customers to choose only the ones
they require, helping them reducelabor requirements and strengthen
compliance. Looking ahead, TMJ
also plans to introduce Personnel
Standards, a similar service for
personnel management.

SleekyC2 eKYC operations center,established by TMJ

SECOM REPORT 2023

45

ESG Initiatives

occupational safety. Of note, we have developed training toensure employee safety in the event of an emergency, as wellas programs that seek to improve equipment maintenance toprevent injuries, as well as to enhance driving techniques.

Socialinitiatives

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

SECOM’s approach

In line with our basic philosophy of offering
services that are beneficial for society, we
believe that the quality of services thatdeliver “safety and peace of mind” isguaranteed by people. Accordingly, we work
to secure and foster human resources witha strong desire to contribute to society.

Occupational
health and safety

We have established a system to minimize occupational safety risks in the area of
security services, and work to maintain and improve the health of our employees bymanaging working hours and conducting health checks.

We believe that our ability to provide safety and peace ofmind to our customers depends on first ensuring the healthand vitality of our employees. Accordingly, we promotevarious initiatives aimed at protecting and enhancing
employee health and 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. Site health committees
across Japan meet to discuss key issues, including
employee working hours and efforts to maintain andimprove health, enhance work environments, ensure safety
and prevent danger. Employee health check results aremanaged through the system and used by OHPs to provide
health guidance. We also actively care for employees’ mental
health, conducting stress checks, arranging meetings withpsychiatrists and specialized counselors, to make certainthat 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
management, ensuring that the latter is fully apprised of
day-to-day operations across Japan and able to provide
instructions for improvements where necessary to bolster
Participants in Training Aimed at Preventing Occupational
Accidents(Number of people)

4,000

3,215

3,090
3,000

2,690

2,000

1,000

0

2021

2022

2023
(Years ended March 31)*Scope of reporting: SECOM CO., LTD., and certain SECOM Group companies

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

Encouraging awareness of SECOM’s Philosophy andadherence to the SECOM Group Code of Employee Conduct
are essential to maximizing the trust of stakeholders andour 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 acommitment to doing what is appropriate. The first element
expresses our determination to offer innovative services andsystems by challenging 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 to society as a whole. The SECOM Group Code of
Employee Conduct sets forth ideals for the conduct of
employees in both public and private life and specificstandards for the day-to-day performance of duties. We havepublished SECOM’s Philosophy and the SECOM Group Codeof Employee Conduct in the form of handbooks andSecuring andfostering of talented
human resources

Ongoing efforts to create safe, employee-friendly
workplaces include the provision of extensive training aimed
at preventing occupational accidents, including that related
to the risk of security accidents in various situations.

pocket-sized guides, which are distributed to employees inJapan 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
and are currently using IT equipment and taking other steps
to encourage observance.
Since 2018, we have promoted the Tri-ion initiative,
which seeks to ensure that SECOM’s Philosophy fully
penetrates every aspect of our operations and to boost
motivation and productivity Groupwide. In the fiscal year
ended March 31, 2023, we introduced a program tocommend sites that take steps to improve workplace culture
with the aim of creating a more open atmosphere.

We are focused on securing and fostering talented human resources with the ability toadapt 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 encourage
motivation and productivity, as well as to create employeefriendly workplaces. One such program enables employees

to choose the geographic location to which they are assigned
to suit 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 in a manner that benefits employees on
the front lines. We have also launched a variety of
Average Hours Spent by Employees in Training
Fiscal year ended March 31, 2022

42.2 hours

Fiscal year ended March 31, 2023

42.6 hours

The method of calculation was revised in the fiscal year ended March 31,
2023, and data for previous years was revised.

46

SECOM REPORT 2023

SECOM REPORT 2023

47

ESG Initiatives

specialized training options, including an overseas study
program and a subsidy system for employees to takecorrespondence courses. In the area of training for security
guards, we have introduced VR technology to improve
effectiveness and ensure employees acquire excellent
discernment and know-how. Going forward, we aim to
expand training for management-level employees, as well as
to increase e-learning-based training opportunities.
Employee performance reviews look to impartiallyevaluate employees’ efforts and support self-realization.

Diversity

Work–life balance

SECOM REPORT 2023

Women have been appointed to management positions in
the home security services business’ sales department andin site administrative offices. In April 2023, we appointed
female employees to the position of manager at security
services offices, a move that had long been underconsideration.

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

80

200

72.9

Total
(left scale)(Number of people)

197

183

100

84

154
150

75

70

62.0
60

100

Male
employees(right scale)

50

22

58.8

50

31
25

0

2021

2022

*Scope of reporting: SECOM CO., LTD.

(%)

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 andprovide 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

50

Women as a Percentage of the Labor Force andthe Management Team

0

2023

2021

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

2022

2023
(Years ended March 31)

30
Women as a percentage of the labor force

20

17.1

17.2

17.3

10.4

11.1

Employeeengagement

Initiatives to boost employee job satisfaction, including raising base salaries for thesecond consecutive year and granting restricted stock, together with the exchange of
opinions between the SECOM Employee Union Federation and executives, are facilitating
the creation of employee-friendly workplaces.

10

9.8

Women as a percentage of the management team

0

2021
*Scope of reporting: SECOM CO., LTD.

2022

2023
(Years ended March 31)

We have established systems that support work styles suited to the different stages of
employees’ lives and the creation of work environments that encourage job satisfaction
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
addition to actively encouraging employees to take annual
paid vacation days, we have established a variety of vacationand leave systems.

48

Evaluations are based on reports prepared by employees
assessing their execution of duties, achievements and areas
in need of improvement, as well as on rational assessment
categories optimized for each particular job. We use an open
and fair format whereby review results are disclosed to
employees. In addition, we promote self-actualization throughsystems designed to assist with career development,
including the Self-Reporting System and Challenge Support
System, which encourage employees to declare and assist
their efforts to realize their own future goals and aspirations.

Diversity and inclusion staff have been assigned to the Human Resource Department topromote the creation of positive work environments in which diverse employees canmaximize 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.
We continue working to advancing career opportunities
for female employees in line with an action plan formulated
in April 2021, striving to achieve the plan’s objectives byactively fostering female leaders, expanding the scope ofjobs available to women, taking steps to prevent
harassment, and promoting work–life balance, thereby
creating positive work environments for women. Thanks tothese efforts, the number of female employees qualified toassume positions of responsibility is increasing steadily.

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 up until the day before thechild’s third birthday. This system has also been available
to male employees since 2002 and we continue working tobolster awareness and use by creating conducive work
environments
Change in working hours/exemption (shorter working
hours) for childcare: Allows employees who are pregnant
or have children who have not yet entered the third gradeof elementary school (exceeds legal requirement, which is
children under the age of three) to change their working
hours or be exempted from minimum working hour rules

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

We seek to achieve sustainable growth as a strong, flexible
organization by creating a virtuous circle, recognizing theimportance of enabling employees to demonstrate their fullpotential, which helps raise the quality of the services andproducts we provide, thereby enhancing customer
satisfaction and earning the trust of society, which in turnincreases employee job satisfaction. Since 2016, we haveconducted an annual anonymous employee job satisfaction
survey. In the fiscal year ended March 31, 2023, the response
rate for this survey was 78.5%.
With the aim of both boosting employee job satisfactionand expanding our operations, we resolved to grant sharesof common stock as restricted stock to approximately
23,000 SECOM Group employees in March 2024.
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,
meaning that in principle employees automatically become
union members when they are hired. As a consequence,
our union membership rate for eligible employees is 100%.
Management representatives, including the President andRepresentative Director, meet monthly with SECOM Lively
Union to exchange views. Discussions are also held at
SECOM Group companies and branches across Japan toaddress issues such as improving workplace environments
and operating procedures and ensuring occupational
health and safety. SECOM Lively Union also exchanges
views with management through meetings with employees
on organizational culture and the SECOM Employee
Central Council.

SECOM REPORT 2023

49

ESG Initiatives

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.

Governanceinitiatives

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.

SECOM’s approach

Outline of corporate governance system

To fulfill our responsibilities to stakeholders,
we work continuously to strengthen corporate
governance by enhancing transparency,
ensuring fairness, expediting decision making
and guaranteeing the independent oversightof management, which we have positioned as
key management challenges.

Corporate
governance

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, threeoutside directors are also appointed to the Board of
Directors to incorporate external perspectives in decision
making and ensure the legality and objectivity ofIn addition to providing independent oversight of the management team’s performanceand ensuring the appropriate execution of business activities, we are promoting
effective disclosure to stakeholders.

Corporate Governance Organization
General Meeting of Shareholders
Appointment/
dismissal

Initiatives to Strengthen Corporate Governance1986
Establishment ofcorporate governancesystem2000

Chairman and
Representative Director

2010: Establishes the SECOM Group Management Committee

President andRepresentative Director

2004: Institutes an executive officer system
Up to 2004:
Maximum of 40

From 2004: 1 year

Number of directors

2000–2001: 28–29
2002–2003: 22–23

From 2004: 9–13

SECOM REPORT 2023

Determination/submission ofdecisions regarding remuneration

Nomination
andCompensation
Committee

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

ReportingInternal audit departments

Legal affairs departments
Coordination

Executive Officers
Deliberation

Organizational Culture
Committee

Audit by independent
public accountants
Accounting audit

From 2023: 8

Up to 2010: 4 From 2011: 5

Number of outside
directors

50

Authorization/consultation
regarding remuneration

Enhancement of compliance/internal auditing

From 2005: Maximum of 20

Number of auditors

Appointment/
dismissal

Proposal of candidates forthe position of director

Reporting on important matters

2006: Formulates basic rules of management for SECOM Group companies

Up to 2003: 2 years

Remuneration for/appointment of directors

2023

Board of Directors(Eight members, three ofwhom are outside directors)
Selection/
oversight

Term of service of
directors

Number of outside
auditors

2020

1986: Creates SECOM’s Philosophy

Separation of management
and execution
Number of directors designatedin the Articles of Incorporation

2010

management. We believe that this enables us to conduct
independent oversight of 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 forpresenting candidates for the position of director to theBoard of Directors and for ensuring the appropriateness of
remuneration for directors, comprises five directors, three ofwhom are outside. Beginning in June 2023, an outside
director has been appointed committee chairperson, a move
aimed at improving objectivity and transparency.

2013–2015: 2
From 2020: 4
2016–2019: 3

From 2022: 3

Up to 2002: 2 From 2003: 3

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

Board of Directors

Executive Officers

Audit & Supervisory Board

The Board of Directors comprises
eight 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
for monitoring the performance of duties
by directors, and strives to promote theactive exchange of opinions with the aimof ensuring effective and swift decision
making. Five of the eight members are
responsible for business execution, withthe remaining three members (outside
directors) having no involvement.

We have adopted an executive officers
system, whereby the Board of Directors
is responsible for decision making andthe executive officers are responsible forbusiness execution. This was done with theaim of strengthening field divisions andenhancing customer service systems byclarifying responsibilities and authority and
expediting business execution. We currently
have 32 executive officers, five of whom arealso directors.

The Audit & Supervisory Board comprises
five members, two of whom are full-time andthree of whom are outside. In principle, theAudit & Supervisory Board meets monthly.
Individuals well-versed in our businesses
and internal affairs, as well as in financeand accounting, are appointed to serve as
full-time members, while individuals whoare independent of the management team,have extensive knowledge of corporate
management, legal, financial and othermatters and are capable of providing
effective oversight and monitoring of the
management team, are appointed to serveas outside members.
SECOM REPORT 2023

51

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 ofmembers and the chairperson of which are outside directors.
Candidates for the Audit & Supervisory Board are nominatedwith 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

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 withannual audit plans.

Ichiro Ozeki
President andRepresentative Director

Principal Activities of Audit & Supervisory Board Membersin the Fiscal Year Ended March 31, 2023

Yasuyuki Yoshida

Participation in meetings of the Board of Directors

98.3%

Participation in meetings of the Audit &Supervisory Board

98.3%

Senior Executive Director

Tatsuro Fuse
Executive Director

Tatsushi Kurihara

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

60 times

Audits conducted by Audit & Supervisory Board
members at remote locations

84 locations

Director

Takaharu Hirose
Outside Director

Hajime Watanabe
Outside Director

Miri Hara

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 observers
during audits conducted by the accounting auditors at
remote locations and during audit reviews (19 times in thefiscal year ended March 31, 2023).
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 Director

Outside directors and outside Audit & Supervisory Board members
Takayuki Ito
Audit & Supervisory Board
MemberYasuhiro Tsuji
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.

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SECOM REPORT 2023

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 2023

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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.

Remuneration for directors and Audit & Supervisory Board members
Attendanceat Board of
Directors’
meetings

Attendanceat Audit &Supervisory
Board meetings

12
—
12

3
—
7

12
—

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. It has been

resolved that from the fiscal year ending March 31, 2025, therelative proportion will be 65:15:20. It has also been resolvedthat beginning in the fiscal year ending March 31, 2025,
bonuses for directors (excluding outside directors) will bemade with comprehensive consideration given to degree ofachievement of targets for operating profit, earnings per
share and employee engagement (employee satisfaction).
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, 2023

12

Breakdown of total remuneration (Millions of yen)
Position

Total
remuneration(Millions of yen)

12

Basic
remuneration
Fixed salary

Performance-based
remuneration
Stock options

Nonpecuniary
remuneration

Bonus

Number ofentitled
individuals

Restricted stock

—
12

12

12

12

12

12

12

12

12

11

11

12

12

Directors(excluding outside directors)

323

262

—

45

16

7

Audit & Supervisory
Board members(excluding outside members)

46

46

—

—

—

2

Outside directors

37

37

—

—

—

4

Outside Audit & Supervisory
Board members

27

27

—

—

—

3

Total

435

374

—

45

16

16

Notes: 1. Director and Advisor Makoto Iida retired on June 28, 2022. Outside Director Hirobumi Kawano retired on November 5, 2022.
2. The Company’s target for consolidated operating proﬁt in the ﬁscal year ended March 31, 2023, was ¥134,000 million. The actual result was ¥136,700 million.
(Calculated based on Japanese GAAP.)

Notes: 1. Information on attendance at meetings of the Board of Directors and Audit & Supervisory Board is for the ﬁscal year ended March 31, 2023.
2. Information for Outside Director Hirobumi Kawano is for meetings held prior to his retirement on November 5, 2022.

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

54

SECOM REPORT 2023

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 2023

55

ESG Initiatives

Directors, Audit & Supervisory Board Members and Executive Officers(As of July 31, 2023)

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 2023 and responses were collated by the Board’s
secretariat in late February. Findings were subsequently
discussed by the Board.
Summary of findings
Composition of the Board of Directors
The opinion was expressed that the appointment of a female
director and other measures have ensured the diversity of
the Board of Directors, that the balance between execution
and oversight is suitable and the Board is an appropriate
size to ensure active discussion and swift decision making.
Constructive views were also expressed regarding further
diversification of the Board’s composition, including bypromoting female directors from within and appointing
directors with various backgrounds.
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 to

Directors
free and open discussion. The view was also expressed that
improvements in the process for advance discussion andreporting on ongoing progress, the explaining and reportingof various matters, the prior delivery of pertinent materials
to the Board of Directors, and the move toward paperlessprocedures had been seen since the previous survey. Various
opinions were also expressed, including that opportunities
should be created for free debate, thereby invigorating
discussion, as well as for further communication withoutside 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.

Yasuo Nakayama

Ichiro Ozeki

Yasuyuki Yoshida

Tatsuro Fuse

Chairman and
Representative Director

President andRepresentative Director

Senior Executive
Director

Executive Director

Tatsushi Kurihara

Takaharu Hirose

Hajime Watanabe

Miri Hara

Director

Outside Director

Outside Director

Outside Director

Audit & Supervisory Board Members

Takayuki Ito

Yasuhiro Tsuji

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

Status of strategic shareholdings
Policy on shareholdings
We may, after comprehensive examination, acquire and/or
hold listed shares for the purpose of collaboration, capital or
business tie-up, business incubation, or the maintenance or
expansion of transactions involving our services and products.
If as the result of an assessment, the appropriateness ofsuch a holding is judged insufficient, it will be targeted for
reduction through the sale of shares.

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.

Executive Team
Directors

Executive Officers

Yasuo Nakayama

Kenichi Furukawa

Kensuke Shindo

Takehiko Senda

Izumi Sawamoto

Chairman and
Representative Director

Managing Executive Officer

Executive Officer

Executive Officer

Executive Officer

Tatsuya Izumida

Yasufumi Kuwahara

Takashi Nakada

Akira Kubota

Ichiro Ozeki

Managing Executive Officer

Executive Officer

Executive Officer

Executive Officer

President andRepresentative Director

Osamu Ueda

Noriyuki Fukuoka

Michiyoshi Morita

Masahiko Naito

Managing Executive Officer

Executive Officer

Executive Officer

Executive Officer

Yoshinori Yamanaka

Takeshi Akagi

Makoto Inaba

Shinji Kiren

Managing Executive Officer

Executive Officer

Executive Officer

Executive Officer

Yoichi Sugimoto

Seiya Nagao

Toshinori Sugimoto

Minoru Takezawa

Managing Executive Officer

Executive Officer

Executive Officer

Executive Officer

Sumiyuki Fukumitsu

Noriyuki Uematsu

Satoshi Araki

Managing Executive Officer

Executive Officer

Executive Officer

Osamu Nagai

Atsushi Komatsu

Satoshi Takizawa

Managing Executive Officer

Executive Officer

Executive Officer

Yasuyuki Yoshida
Senior Executive Director

Tatsuro Fuse
Executive Director

Tatsushi Kurihara
Director

Sadahiro SatoManaging Executive Officer

56

SECOM REPORT 2023

SECOM REPORT 2023

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ESG Initiatives

Message from an Outside Officer

Hajime Watanabe
Outside Director
Important position concurrently held in
another organization
Chairman and Representative Director,
Watanabe Pipe Co., Ltd.

Seven years have passed since my appointment as one of
SECOM’s outside directors. In the decade or so since Japan
inaugurated game-changing corporate governance reforms,
the role of outside directors has become clearer. At SECOM,
too, we have become better at fulfilling our responsibilities.
Because outside directors are unconstrained by any material
relationship with the Company, we are uniquely positioned to
speak our minds unreservedly at Board of Directors’
meetings. I think the job of an outside director also
sometimes includes pushing inside directors to take theright path. I recognize that steps taken over time havegreatly enhanced our ability to engage in meaningful
discussion. These include the digitalization of pertinentmaterials in advance of each Board of Directors’ meeting,which ensures all participants have an adequate
understanding of matters to be addressed, thereby
encouraging outside directors and outside members of the
Audit & Supervisory Board to actively exchange opinions andoffer proposals. As a result, we continue to see a steady
improvement in the effectiveness of the Board of Directors.
Recent years have brought dramatic socioenvironmental
changes, including population decline, increasingly severe
natural disasters and deteriorating public safety. The
resulting diversification of needs for safety and peace ofmind has heightened SECOM’s responsibilities, but it has also
expanded opportunities. The Company’s on-line security
systems and pioneering subscription-based security services
format is a superb business model that has proven essential in
the creation of a security services infrastructure that delivers
safety and peace of mind. However, I believe it is important
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SECOM REPORT 2023

that the Company does not rest on its laurels, but rather works
continuously to refine its current services, as well as todevelop new business models. For many years, I too helmed acompany that provides essential infrastructure nationwide.
This, as well as my experience as an outside director at
SECOM, underpin my belief that a company’s customers
should always be its top priority. In practice, this means
paying maximum attention to the views of those closest to
customers, namely, employees on the front lines. At meetingsof SECOM’s Board of Directors, I enthusiastically offer advice
and suggestions on front-line operations and the Company’sorganization, both of which are essential to the Company’s
ability to capitalize on opportunities and evolve with the times.
I believe that human resources strategies will beessential to sustainable future growth. The SECOM brand,
known for trustworthiness and dependability, has beencultivated through the day-to-day efforts of each and every
employee and is something the Company must work hard toprotect and enhance. The same is true of SECOM’s DNA,unchanged since its founding, that is, what makes it
distinctive, including its willingness to take on challenges
and its spirit of creativity and innovation. Reviewing andraising salaries and employee welfare programs is aninvestment in the future. Continuing to treat employees
generously going forward will bolster the Company’s ability
to attract and secure diverse, talented human resources,
including women, as well as help improve employee
engagement.
I appreciate that SECOM is extremely proactive ininvesting in future growth. I am particularly excited about its
May 2023 investment in U.S. SaaS firms, which I think will be
key to the development of new services and products
deploying the latest technologies. It is my hope that theCompany continues to leverage its solid financial foundation
to promote forward-looking investments, including in humanresources, facilities and acquisitions, that will position it for
further growth. The SECOM Group encompasses many
excellent companies that are industry leaders in their own
rights, but I still see considerable scope for capitalizing on
synergies to drive the Group’s evolution. Looking ahead,strengthening cross-business functions and deepening
collaboration within the Group will also create new business
opportunities. Given the rapid evolution of technology today, I
also believe it will be critical to step up open innovation,
which has been a key focus in recent years.
As an outside director, I will continue working to help
SECOM increase its corporate value to ensure its ability toappropriately reward all stakeholders—society at large, as
well as its customers, employees and shareholders—overthe medium to long term.

Compliance

We strive 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.

SECOM formulates an AI Ethics Charter
With the rapid proliferation of AI-based services and mechanisms, it is important for companies to commit themselves tothe ethical and proper use of these technologies. In October 2022, we formulated the SECOM AI Ethics Charter, becoming
the first security services company in Japan to establish guidelines for the use of AI. In accordance with this charter, we
will continue to develop and extend advanced services that customers can use with peace of mind.

SECOM REPORT 2023

59

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.
Whistle-Blower Reports Received

Compliance Department via the Harassment Help Desk.

Year ended
Year ended
Year ended
March 31, 2021 March 31, 2022 March 31, 2023

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

Number ofreports

74

92

153

Note: Numbers represent the actual number of reports received across the
SECOM Group. Since the fiscal year ended March 31, 2022, this has
included 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 2023

The establishment of the SECOM Group Information Security Basic Policy and thecreation and operation of a robust information security system enable us to provide
services that can be used with peace of mind.

Policy and system for promoting information security

Compliance Department via the Hot Helpline, or to the
Human Resources Department and Internal Audit andInformation security

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.

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 havethe 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 strengthen our

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 quick 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, 2023)

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.

SECOM REPORT 2023

61

ESG Initiatives

Addressing
climate change

Environmental
Initiatives
SECOM’s approach

We recognize that preservation of the global
environment is critical to the realization ofsafe and comfortable lifestyles, and we
deploy environmental management systems
to ensure consideration for the environment
across the supply chain.

Environmental
management

In line with the SECOM Group Environmental Policy, we advance a variety ofenvironmental conservation initiatives, evaluating and managing the progress thereof
against key environmental performance indicators.

In October 2022, we formulated the SECOM Group
Environmental Policy, substantially revising our existing
environmental policy, and clarified our basic stance ofcontributing to the resolution of global environmental issues
through our business activities. We are also promoting

dissemination initiatives in-house to heighten employees’
awareness of both our new policy and our environmental
conservation initiatives. We evaluate and manage theprogress of these initiatives against seven major
environmental performance indicators.

Initiatives to fight climate change
The Risk Committee, which is chaired by the director in
charge of risk management and consists of the heads ofmajor departments at SECOM headquarters, is charged withgrasping Groupwide risks, including those related to climatechange, as well as with considering countermeasures. Risks
identified based on the findings of Groupwide surveys areassessed from multiple perspectives, including scope of
impact, scale, estimated monetary cost of damage, urgency
and frequency of occurrence, and countermeasures areformulated. Risk analysis and assessment results arereported to the President and Representative Director andmatters of high importance are further reported to the Boardof Directors.
Addressing climate change is a global challenge. At thesame time, it is an issue that is crucial to our ability toensure the stable and continuous provision of security, data
center, medical and other services. This recognition
prompted us to declare our support for the TCFD in 2019. We
subsequently conducted an assessment in line with the
TCFD’s recommendations through which we identified thePrincipal Climate Change–Related Risks and Opportunities
False readings by security equipment due torising temperatures
Suspension of operations due to heatstroke/
infectious diseases affecting security guards
Physical risks

Environmental 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

Recognizing the risks posed to our operations by climate change, we are actively
working to achieve carbon neutrality by 2045.

Scope 1: Direct emissions (including those from the combustion ofgasoline by vehicles, use of diesel and use of kerosene)

Flood damage to sites caused by rising sea
levelsDelays in the procurement of security
equipment due to damage suffered bysuppliers

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

Tightening of regulations through theimposition of carbon taxes, etc.
Transition risks
Obligation to adopt energy from renewablesources
Increased demand for safety confirmation
services
Increased demand for BCP services
Opportunities

Increased demand for monitoring services
Increased demand for fire insurance
Increased demand for green data centers

62

SECOM REPORT 2023

following risks and opportunities related to climate change
as having the potential to impact our business activities.
The Sustainability Promotion Office plays a central rolein assessing risks and opportunities and proposing
responses. We continue to collect and examine a broad
range of information on medium- to long-term climatechange–related risks and opportunities, including on
climate trends and the outlook for carbon taxes andemissions regulations, from the SBTi, the RE100, the TCFD
and other sources.
The SECOM Group Sustainability Meeting, which is
attended by representatives of Group companies, is held asnecessary to share information on climate change–relatedrisks, policies for reducing greenhouse gas emissions andrelated issues, as well as to promote initiatives aimed atmeeting our target of achieving carbon neutrality by 2045.
Note: For more information on SECOM’s climate change–related medium- andlong-term targets, KGIs and KPIs, please see pages 30–31.

Acquisition of environmental certification
for new training facility
The new SECOM
HD Center Gotemba
training facility,
which is scheduled
to be completed in
May 2026 (completion of structures
is scheduled for
Artist’s rendering ofJanuary 2025), isthe SECOM HD Center Gotemba
our first to qualify
for “Nearly ZEB”*
certification. In
addition to theinstallation of solar
panels on the roof
and the east side of the site, we plan to construct a
heliport that can be used in the event of a disaster. Goingforward, we will continue to consider improving environmental and energy performance when building new or
renovating existing facilities with the aim of achieving
our target of carbon neutrality by 2045.
* A net Zero Energy Building (ZEB) is a building that achieves a reduction
in energy consumption of 100% or more, i.e., net zero or negative
net primary energy consumption, while maintaining a quality indoor
environment. A Nearly ZEB building is, as its name indicates, almost
ZEB, achieving a net reduction in energy consumption of 75% or morethrough energy saving (at least 50%) and energy creation.

SECOM REPORT 2023

63

ESG Initiatives

ESG Initiatives

SASB Index
Medium- and Long-Term Targets for Reducing Greenhouse Gas Emissions
Medium-term target
2023
Scope 1 and 2

We have prepared a report under Sustainability Accounting Standards Board (SASB) guidance for the(Fiscal years ended/ending March 31)

2027

2031

45% reduction (from the fiscal year ended March 31, 2019)

Professional & Commercial Services sector, which most closely aligns with the business of SECOM. This

Long-term target(Year)

2045

2050

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

Zero emissions

SECOM’s SASB Index
Scope 3

Zero emissions

40% reduction (from the fiscal year ended March 31, 2019)

Professional & Commercial Services Sector Sustainability Indicators
Topic• These targets have been certified under the SBTi, an
initiative that seeks to drive climate action in theprivate sector.
• We have also joined RE100, a global initiative, with theobjective of transitioning fully to electricity generatedusing renewable energy for our operations by 2045.

Code

Accounting Metric

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

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

Base year
192,920

180,000

Workforce Diversity &Engagement

10.7% reduction

190,407
182,238

180,449
172,311160,000
140,000

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

120,000

106,106

100,000

Target for 2045:
0Professional Integrity

80,000

2019

2020

2021

2022

2023

2031

2045

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

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

Topic

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:

14,156(2) temporary(2) Temporary employees:

1,212(3) contract(3) Contract employees:

1,767

Employee hours worked, percentage
billable

Employee hours worked:

33,004,955

Percentage billable:

N/A* Data for “Activity metrics” is for SECOM CO., LTD., and is as of March 31, 2023, or for the fiscal year ended March 31, 2023. Because billing for electronic security
services, our principal business, is based on fixed monthly fees, “percentage billable” is not applicable.

64

SECOM REPORT 2023

SECOM REPORT 2023

65

Financial Information and References

Financial Review

Operating Results
Overview
In the fiscal year ended March 31, 2023, 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 ¥1,227.3 billion, up 5.2%, or ¥61.2
billion, from the previous fiscal year, owing to contributions from
Senon, which became a consolidated subsidiary in July 2022,
and to increases in all segments except fire protection services.
Operating income declined 6.9%, or ¥10.9 billion, to ¥145.6
billion, owing to the fact that the security services and fire
protection services segments benefited from comparatively
profitable projects in the preceding period, as well as toinvestments in growth, primarily in the security services
segment, an increase in losses due to natural disasters in
the insurance services segment and an elevated fuel costadjustment unit price in the BPO and ICT services segment.
Net income attributable to SECOM CO., LTD., rose 3.6%, or ¥3.8
billion, to ¥111.6 billion, reflecting factors such as increases ingain on private equity investments and equity in net income ofaffiliated companies.

Net Sales and Operating Revenue
Consolidated net sales and operating revenue in the period
under review amounted to ¥1,227.3 billion, up 5.2%, or ¥61.2
billion, owing to contributions from Senon, which became aconsolidated subsidiary in July 2022, and to increases in all
segments except fire protection services. (For further
information, please see Segment Information below.)

Costs and Expenses
Total costs and expenses advanced 7.1%, or ¥72.1 billion, to¥1,081.8 billion. Cost of sales, at ¥861.8 billion, rose 7.4%, or¥59.4 billion. This accounted for 70.2% of net sales andoperating revenue, up from 68.8%, boosted by higher cost of
sales ratios in the insurance services and the BPO and ICT
services segments, attributable to, respectively, increased
losses due to natural disasters and rising electric power
charges due to an elevated fuel cost adjustment unit price.
Selling, general and administrative (SG&A) expenses, rose 5.8%,
or ¥11.8 billion, to ¥216.0 billion, and represented 17.6% of net
sales and operating revenue, up from 17.5%. Impairment loss on
long-lived assets climbed ¥2.5 billion, to ¥2.6 billion, owing to,among others, the recognition of impairment losses on groundsystems related to the failure to launch of an advanced opticalsatellite in the geospatial information services segment.
However, because losses related to the satellite’s failure tolaunch are covered by insurance, a related insurance payout
will be reported in the fiscal year ending March 31, 2024.
Impairment loss on goodwill increased ¥1.2 billion, to

66

SECOM REPORT 2023

¥1.5 billion. The Company also posted a ¥173 million gainon sales and disposal of fixed assets, net, compared witha ¥2.7 billion loss in the preceding period.

Operating Income
Operating income declined 6.9%, or ¥10.9 billion, to ¥145.6
billion, owing mainly to decreases in the security services, fire
protection services, medical services, insurance services, andBPO and ICT services segments. The operating margin fell to
11.9%, down from 13.4%. (For further information, please see
Segment Information below.)

Other Income and Expenses
Other income rose ¥10.4 billion, to ¥20.0 billion. In contrast,
other expenses decreased ¥1.8 billion, to ¥2.6 billion. Net otherincome thus amounted to ¥17.4 billion, advancing ¥12.2 billion.
This was due largely to an ¥11.8 billion gain on private equity
investments, up ¥8.7 billion.

Income Taxes
Income taxes amounted to ¥49.5 billion, an increase of¥292 million. This was equivalent to 30.3% of income fromcontinuing operations before income taxes and equity in net
income of affiliated companies, compared with 30.4% in thepreceding period.

Equity in Net Income of Affiliated Companies
Equity in net income of affiliated companies rose ¥1.5 billion, to¥8.2 billion. This primarily reflected higher equity in net incomeof such companies overseas.

Net Income Attributable to Noncontrolling Interests
Net income attributable to noncontrolling interests slipped¥1.3 billion, to ¥10.1 billion, hindered mainly by decreases
in operating income in the fire protection services and the
BPO and ICT services segments, as well as to the fact that
Secom Joshinetsu became a wholly owned subsidiary in thepreceding period.

Net Income Attributable to SECOM CO., LTD.
Net income attributable to SECOM CO., LTD., advanced 3.6%,
or ¥3.8 billion, to ¥111.6 billion, equivalent to 9.1% of net sales
and operating revenue, edging down from 9.2%. Net income
attributable to SECOM CO., LTD., per share was ¥516.68, up from¥492.83. The figure of ¥180.00 for cash dividends per share thatappears in the consolidated financial statements represents
cash dividends approved and paid to shareholders during theperiod under review, namely, a ¥90.00 per share year-end
dividend for the fiscal year ended March 31, 2022, approved at
the Ordinary General Meeting of Shareholders held on June 28,2022, and a ¥90.00 per share interim dividend determined by
the Board of Directors and paid to shareholders of record as of
September 30, 2022. The year-end cash dividend for the fiscal
year ended March 31, 2023, approved at the Ordinary General
Meeting of Shareholders held on June 27, 2023, was ¥95.00
per share.

Segment Information
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, 2023,
net sales and operating revenue in this segment rose 5.9%, or¥33.6 billion, from the previous fiscal year, to ¥600.3 billion.
Excluding intersegment transactions, segment net sales andoperating revenue totaled ¥597.1 billion, representing 48.6% of
overall net sales and operating revenue, up from 48.3%.
Electronic security services generated net sales andoperating revenue of ¥357.0 billion, up 2.4%, or ¥8.2 billion. This
primarily reflected an increase in sales by overseas Group
companies and the impact of currency exchange rates on thesesales, contributions from newly consolidated subsidiary Senon
and firm sales of on-line commercial and home security
systems in Japan. Other security services include static guard
and armored car services. Sales and operating revenue fromstatic guard services, which are provided by highly trained
professional security guards for systems requiring humanjudgment and flexible responsiveness, rose 18.2%, or ¥13.7
billion, to ¥89.2 billion. This was despite a negative reboundafter the Company’s provision of security services forcompetition venues and other facilities for the Olympic andParalympic Games Tokyo 2020, held in the preceding period, andwas thanks to the inclusion of the results of Senon, among
others. Net sales and operating revenue from armored car
services, which involve the transport of cash, securities andother valuables using specially fitted armored cars and security
professionals, edged up 0.7%, or ¥453 million, to ¥62.9 billion.
Merchandise and other, which includes security camera
systems, access control systems, automated fire extinguishingsystems and external monitoring systems that can be
freestanding or linked to on-line security systems, generated
net sales and operating revenue of ¥88.0 billion, an increase of
14.3%, or ¥11.0 billion, underpinned by robust sales-type leasesof large-scale security systems in Japan and rising sales ofsuch systems overseas.
Operating income in the security services segment declined
3.5%, or ¥4.0 billion, to ¥109.4 billion. The operating margin
slipped to 18.2%, from 20.0%. Principal factors behind theseresults included comparatively profitable projects in thepreceding period; higher SG&A expenses, attributable toinvestments in growth; and a ¥1.0 billion increase in impairment
loss on goodwill, to ¥1.1 billion.

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, production facilities,
tunnels, cultural properties, ships and homes. In the period
under review, the segment’s core companies, Nohmi Bosai andNittan, leaders in Japan’s fire protection services market, sought
to leverage their respective operating foundations, productdevelopment capabilities and other strengths to secure orders.

Segment net sales and operating revenue was ¥148.8 billion,a decline of 2.2%, or ¥3.3 billion, primarily reflecting theabsence of major projects that benefited the segment in thepreceding period. Owing to the concentration of comparatively
profitable projects in the preceding period, among others,
segment operating income declined 20.4%, or ¥3.0 billion, to¥11.6 billion, while the operating margin was 7.8%, downfrom 9.5%.

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,notably electronic medical report systems. The operations ofvariable interest entities (VIEs) of which the Company is theprimary beneficiary, which manage hospitals and healthcare–related institutions, are also accounted for in this segment.
Net sales and operating revenue in this segment edged up
0.2%, or ¥423 million, to ¥196.5 billion. This was despite
deteriorating revenue at affiliated hospitals in Japan and lower
sales in the pharmaceutical dispensing services business, thelatter due to the revision of drug reimbursement prices under
the country’s National Health Insurance system, and reflected,
among others, an increase in patient numbers at the Company’s
general hospital in India. Owing to factors such as declining
profits at domestic affiliated hospitals, operating income fell
23.0%, or ¥3.1 billion, to ¥10.5 billion. The operating margin was
5.3%, down from 7.0%.

Insurance Services
The insurance services segment continued to expand sales ofan extensive lineup of distinctive non-life insurance policies,
including the Security Discount Fire Policy, a commercial fire
insurance policy, and SECOM Anshin My Home, a comprehensive
fire insurance policy for homes (both of which extend discounts
on premiums to customers who have installed on-line security
systems, recognizing this as a risk-mitigating factor), 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 thatoffers on-site support services provided by SECOM emergency
response personnel should the policyholders be involved inan accident.
Segment net sales and operating revenue rose 12.7%, or¥7.0 billion, to ¥61.9 billion, owing to firm sales of MEDCOM, aswell as to net realized investment gains (including gains onother-than-temporary impairments of investment securities) of¥5.0 billion, compared with net realized investment losses of¥1.2 billion in the previous fiscal year. Operating income, at ¥7.1
billion, was down 17.0%, or ¥1.5 billion, owing to an increase inlosses due to natural disasters, although this was partially
offset by the aforementioned net realized investment gains.

SECOM REPORT 2023

67

Geospatial Information Services
Geospatial information services center on the collection ofgeographic data using commercial satellites, aircraft andsurveying with proprietary vehicles, among others, which is
integrated, processed and analyzed to provide geospatial
information services to public-sector entities—including
national and local governments—and customers in the private
sector in Japan. These services are also offered to government
agencies overseas.
Net sales and operating revenue in this segment advanced
10.2%, or ¥5.7 billion, to ¥62.3 billion, primarily reflecting higher
revenue from domestic public sector entities and overseas
customers. Despite an increase in impairment loss on long-lived
assets, operating income climbed 49.9%, or ¥1.9 billion, to ¥5.8
billion, thanks to an improvement in the cost of sales ratio forservices provided to domestic public-sector entities. The
operating margin rose to 9.3%, from 6.8%.

BPO and ICT Services
BPO and ICT services, which focus on the provision of data
center services, also encompass distinctively SECOM BCP
support, information security and cloud-based services, andBPO services, which include the operation of contact centers.
Segment net sales and operating revenue rose 11.3%, or¥14.1 billion, to ¥138.9 billion, as revenue advanced in the BPO
services business—underpinned by the expansion of services
related to COVID-19, the cultivation of new customers andexpanded orders from existing customers—and in the data
center services business. Operating income declined 10.0%, or¥1.5 billion, to ¥13.1 billion, notwithstanding the positive impactof higher net sales and operating revenue, as an elevated fuelcost adjustment unit price pushed up costs in data center
services. The operating margin declined to 9.4%, from 11.7%.

Other services
The other services segment provides real estate leasing, as wellas construction and installation services. The vehicle fleet
operation services business of Senon, which became aconsolidated subsidiary in July 2022, is also accounted for inthis segment. Net sales and operating revenue in this segmentrose 16.1%, or ¥5.7 billion, to ¥41.1 billion, with contributing

factors including the consolidation of Senon. Operating income
advanced 22.9%, or ¥1.4 billion, to ¥7.5 billion, while theoperating margin was 18.3%, up from ¥17.3%.

Financial Position
Total assets as of March 31, 2023, amounted to ¥2,277.4 billion,
an increase of ¥93.9 billion from the end of the previous fiscal
year. Total current assets rose ¥9.8 billion, to ¥1,036.5 billion,
and accounted for 45.5% of total assets. The current ratio was
2.4 times, level with the end of the previous fiscal year.
Cash and cash equivalents, the principal component of
current assets, was ¥524.8 billion, down ¥6.8 billion. (For further
information, please see Cash Flows, which follows this section.)
Notes and accounts receivable, trade, increased ¥7.5 billion, to¥172.9 billion, a result of such factors as higher net sales andoperating revenue in the geospatial information services
segment. Notes and accounts receivable, trade, are affected by
the fact that net sales and operating revenue in the fire
protection services and geospatial information services
segments tends to be concentrated toward the end of the fiscal
year. Cash deposits for armored car services declined ¥1.0
billion, to ¥135.5 billion. These cash deposits are funded largely
through bank overdrafts and deposits and their use by theCompany is restricted. Inventories, at ¥46.8 billion, were up ¥8.6
billion, owing primarily to steps taken to expand inventories ofcomponents for fire protection services–related products tocircumvent procurement difficulties.
Investments and long-term receivables, at ¥383.7 billion,
advanced ¥34.2 billion, and represented 16.8% of total assets.
This was due mainly to investment securities of ¥235.0 billion,
an increase of ¥20.0 billion, bolstered by a gain on private equity
investments, and to investments in affiliated companies of ¥79.6
billion, up ¥8.0 billion, thanks to strong performances byoverseas affiliated companies combined with yen depreciation.
Property, plant and equipment, less accumulated
depreciation, rose ¥11.2 billion, to ¥436.0 billion, accounting for19.1% of total assets. This largely reflected a ¥10.8 billion
increase in construction in progress, to ¥20.6 billion,
underpinned by investments in the construction of new data
centers.

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, 2023, net cash provided
by operating activities amounted to ¥156.2 billion. Principal
components of this included net income of ¥121.7 billion, anddepreciation and amortization, including amortization ofdeferred charges, of ¥78.7 billion. Key negative adjustments

included a gain on private equity investments of ¥11.8 billion,
equity in net income of affiliated companies of ¥8.2 billion,
an increase in inventories of ¥9.0 billion and an increase indeferred charges of ¥8.0 billion. Net cash provided byoperating activities was down ¥29.1 billion from the fiscal year
ended March 31, 2022, with major causes including a decline
in operating income and a ¥4.0 billion decrease in accrued
income taxes, compared with a ¥4.0 billion increase in thepreceding period.
Net cash used in investing activities was ¥77.3 billion. The
main applications of cash included payments for purchases ofproperty, plant and equipment of ¥52.8 billion, used primarily
for purchases of equipment necessitated by expanded
subscriptions for security services; and acquisitions, net ofcash acquired, of ¥18.9 billion, a consequence primarily of theacquisition of Senon. With the principal contributing factor being
the aforementioned ¥18.9 billion applied to acquisitions, net ofcash acquired, net cash used in investing activities was up¥17.0 billion from the previous fiscal year, when there were no
acquisitions. Investments in the insurance services segment
and private equity investments in the United States yielded net
proceeds from sales and redemptions of investment securitiesof ¥1.9 billion, up from ¥1.6 billion.
Net cash used in financing activities amounted to ¥87.2
billion. This was due mainly to dividends paid to SECOM CO., LTD.
shareholders of ¥39.1 billion, an increase in treasury stock, net,of ¥29.8 billion attributable to the purchase of treasury stock on
the open market, and repayments of long-term debt of ¥16.7
billion. Net cash used in financing activities was down ¥10.1
billion from the previous fiscal year, despite the increase intreasury stock, net, largely reflecting the absence of ¥28.6
billion in payments for acquisition of shares of consolidated
subsidiaries from noncontrolling interest holders in thepreceding period, mainly in relation to the acquisition of theownership interests of Secom Joshinetsu via a tender offer.
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 ¥524.8 billion, down ¥6.8 billion fromcash and cash equivalents at beginning of year of ¥531.6 billion.

Percentage of Consolidated
Net Sales and Operating Revenue*

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

Depreciation and Amortization

Purchases of Property, Plant andEquipment and Intangible Assets

Cash Flows(Year ended March 31, 2023)(In yen)(In billions of yen)

(In billions of yen)

(In billions of yen)

(In billions of yen)

10.4%

3.2%
2,500

6,000

5.1%
4.8%

5,000
16.0%

75

60

200

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

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

150
100

1,500
3,000

SECOM REPORT 2023

80

4,000

11.9%

Security Services
Medical Services
Geospatial Information
Services
Other Services

100

2,000

48.6%

68

Other assets climbed ¥38.7 billion, to ¥421.1 billion,
equivalent to 18.5% of total assets, a consequence primarily of
the acquisition of Senon, which boosted goodwill ¥32.0 billion,to ¥141.6 billion, and other intangible assets ¥7.1 billion, to¥65.7 billion.
Total liabilities as of March 31, 2023, amounted to ¥841.9
billion, up ¥3.4 billion, and represented 37.0% of total liabilities
and equity. Total current liabilities rose ¥14.9 billion, to ¥434.1
billion, accounting for 19.1% of total liabilities and equity. Thiswas due mainly to an increase in other current liabilities of¥13.9 billion, to ¥44.5 billion, reflecting higher payables for thepurchase of equipment for the construction of new data centers.
Total long-term liabilities declined ¥11.6 billion, to ¥407.8 billion,
equivalent to 17.9% of total liabilities and equity.
Total SECOM CO., LTD. shareholders’ equity advanced ¥57.7
billion, to ¥1,267.2 billion, lifting the equity ratio to 55.6%, from
55.4% a year earlier. Retained earnings rose ¥72.4 billion, to¥1,212.3 billion, with contributing factors including net income
attributable to SECOM CO., LTD., and the payment of dividends.
As a result of yen depreciation, foreign currency translation
adjustments climbed ¥16.1 billion, to ¥19.0 billion, boosting
accumulated other comprehensive income by ¥14.9 billion, to¥23.6 billion. Common stock in treasury, at cost, was ¥109.2
billion, an increase of ¥29.8 billion, owing to the purchase oftreasury stock on the open market. Noncontrolling interests, at¥168.3 billion, were up ¥32.9 billion, equivalent to 7.4% of total
liabilities and equity, a consequence primarily of the acquisitionof Senon.

50

40

25

20

50

1,000
0

2,000
500

1,000

-50

0

0
2019 2020 2021 2022 2023

-100

0

0
2019 2020 2021 2022 2023

2019 2020 2021 2022 2023

2019 2020 2021 2022 2023

2021

2022

2023

SECOM REPORT 2023

69

Financial Information and References

Consolidated Financial Statements
Consolidated Balance Sheets
SECOM CO., LTD. and Subsidiaries
March 31, 2023 and 2022

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

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

In millions of yen

Translation into
thousands of
U.S. dollars

March 31

March 31

2023

2022

2023

¥ 524,777
9,211
135,460
25,938172,946
61,78146,756
7,565
29,730(2,202)
2,704
21,8391,036,505¥ 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$ 3,916,246
68,7391,010,896
193,567
1,290,642
461,052
348,925
56,455
221,866(16,433)
20,179
162,978
7,735,112

235,003
79,64738,712
22,07812,457(4,175)
383,722215,01271,66334,984
20,69911,380(4,201)
349,537

1,753,754
594,381
288,896
164,761
92,963(31,157)
2,863,598

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 ......................................................................................................
Accrued 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

2022

2023

2023

¥

30,096
12,527
48,14846,284
124,117
37,747
23,121
46,476
21,04044,547434,103¥

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

224,597
93,485359,313345,403926,246
281,694
172,545
346,836
157,015
332,440
3,239,574

47,414
23,22931,09016,121129,034
14,363
20,222
109,544
16,767
407,784
841,887

51,84423,23830,244
16,545133,014
16,966
14,277
116,962
16,262
419,352
838,517353,836
173,351
232,015
120,306
962,940
107,187
150,910
817,493
125,125
3,043,163
6,282,737

66,42763,082
11,067
1,212,269

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

495,724
470,761
82,5909,046,784(1,220)5,814
18,991
23,585

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

(9,104)
43,388
141,724
176,008(109,225)
1,267,205
168,287
1,435,492¥2,277,379(79,437)
1,209,512
135,437
1,344,949¥2,183,466(815,112)
9,456,755
1,255,873
10,712,628$16,995,365

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

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

70

SECOM REPORT 2023

123,197
397,640
372,650
168,973
20,5581,083,018(646,969)
436,049

130,584
12,559141,626
65,74355,552
15,039421,103¥2,277,379

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

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

919,3812,967,463
2,780,970
1,260,993
153,417
8,082,224(4,828,127)
3,254,097

974,507
93,724
1,056,910
490,619414,567
112,231
3,142,558$16,995,365

Equity:SECOM CO., LTD. shareholders' equity:
Common stock
Authorized—900,000,000 shares, issued 233,299,898 shares in 2023
Authorized—900,000,000 shares, issued 233,298,049 shares in 2022....................
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:
18,763,110 shares in 2023 and 15,215,218 shares in 2022 ........................................
Total SECOM CO., LTD. shareholders' equity.....................................................................
Noncontrolling interests...................................................................................................................
Total equity ............................................................................................................................
Total liabilities and equity.................................................................................................

SECOM REPORT 2023

71

Financial Information and References/Consolidated Financial Statements

Consolidated Statements of Income

Consolidated Statements of Changes in Equity

SECOM CO., LTD. and Subsidiaries
Three years ended March 31, 2023

SECOM CO., LTD. and Subsidiaries
Three years ended March 31, 2023

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

2023

2022

2021

2023

¥1,227,316¥1,166,098¥1,135,339$9,159,075

861,802
216,032
2,647
1,456
(173)
1,081,764
145,552

802,443
204,190
113
268
2,682
1,009,696
156,402790,288
201,723
95
5,660
1,764
999,530
135,8096,431,358
1,612,179
19,754
10,866(1,291)
8,072,866
1,086,209

2,325
—
478
11,792
5,445
20,040

1,784
334
—
3,072
4,480
9,670

1,880
—
4,594
—
5,647
12,121

17,351—
3,567
88,00040,634
149,552

1,183
111
—
—
1,298
2,592

1,165
—
848
—
2,370
4,383

1,168
121
—
302
1,254
2,845

8,828
828
—
—
9,687
19,343163,000

161,689

145,085

1,216,418

45,872
3,584
49,456

46,7382,426
49,16443,743
3,855
47,598342,329
26,746
369,075

113,544
8,152
121,696—
121,696(10,138)¥ 111,558

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

847,343
60,836908,179—
908,179(75,657)$ 832,522

In yenTranslation into
U.S. dollars

Years ended
March 31

Year ended
March 31

SECOM REPORT 2023

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
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.............................................................
1,849
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, 2023 ......................................................... 233,299,898

Commonstock

Additional
paid-in
capitalLegalreserve

Retainedearnings¥66,401¥74,680¥10,833¥1,017,661(¥ 7,061)(¥ 73,776)¥1,088,738¥138,669¥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)————66,419(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(22,473)——
135,437(34,075)
0(5,652)
1,344,949———

111,558——

111,558

10,138

121,696

—
—
—

—
—
—

—
—
—

—
—
—

(3,644)2,490
16,061

—
—
—

8
—
—
—

8
—
—
—

—
—
—
95

—
(39,060)
—
(95)

—
—
—
—

—
—
—
—

(3,644)2,490
16,061
126,465
16(39,060)
—
—

—
226
824
11,188——(3,199)—(3,644)
2,716
16,885
137,653
16(39,060)(3,199)————¥66,42760
0—¥63,082———¥11,067———¥1,212,269———¥23,585—
0(29,788)(¥109,225)

60
0(29,788)¥1,267,205

24,861——¥168,287

24,921
0(29,788)¥1,435,492

Commonstock intreasury,
at cost

2021

2023

Commonstock¥516.68—
516.68¥180.00¥492.83—
492.83¥175.00¥423.73(11.78)411.95¥170.00

$3.86
—
3.86
$1.34

In millions of yen

Translation into
thousands of
U.S. dollars

Years ended
March 31

Year ended
March 31

Balance, March 31, 2022 ...................................................................................... $495,664
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..........................................................................................
60
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, 2023 ...................................................................................... $495,724

2023

2022

2021

2023

¥121,696¥119,164¥101,495$ 908,179(3,644)
2,716
16,885
137,653(11,188)¥126,465

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

519
4,462(3,975)102,501(11,739)¥ 90,762(27,194)
20,269126,007
1,027,261(83,492)$ 943,769

Commonstock intreasury,
at costTotal
SECOM CO., LTD.
shareholders’ Noncontrolling
equityinterests

Total

Translation into thousands of U.S. dollars

2022

SECOM CO., LTD. and Subsidiaries
Three years ended March 31, 2023

72

Number ofsharesissued2023

Consolidated Statements of Comprehensive Income

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

In millions of yen
Accumulated
other comprehensive
income (loss)

Additional
paid-in
capitalLegalreserve

Retainedearnings

Accumulated
other comprehensive
income (loss)

Total
SECOM CO., LTD.
shareholders’ Noncontrolling
equityinterests$470,254$81,881$8,506,463$ 64,761($592,813)$9,026,210——

832,522——832,52275,657908,179

—
—
—

—
—
—

—
—
—

(27,194)
18,582
119,859

—
—
—

60
—
—
—

—
—
—
709

—
(291,492)
—
(709)

—
—
—
—

—
—
—
—

(27,194)
18,582
119,859
943,769120(291,492)
—
—

—
1,687
6,148
83,492——(23,873)—(27,194)
20,269126,007
1,027,261
120(291,492)(23,873)—447
0—$470,761———$82,590———$9,046,784———$176,008—
0(222,299)($815,112)447
0(222,299)$9,456,755

Total$1,010,724 $10,036,934

185,530
185,977—0—(222,299)$1,255,873 $10,712,628

SECOM REPORT 2023

73

Financial Information and References/Consolidated Financial Statements

Consolidated Statements of Cash Flows

Segment Information

SECOM CO., LTD. and Subsidiaries
Three years ended March 31, 2023

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

74

SECOM REPORT 2023

In millions of yen

Translation into
thousands of
U.S. dollars

Years ended
March 31

Year ended
March 31

2023

2022

2021

2023

¥121,696¥119,164¥101,495$ 908,179

78,718(2,661)
3,584
(173)
2,647
—
(11,792)
1,456(2,713)(2,609)(8,152)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)587,448(19,858)
26,746(1,291)
19,754—(88,000)
10,866(20,246)(19,470)(60,836)

1,060

2,412

2,016

7,910

(3,797)(8,960)(8,026)2,117(99)(1,148)(4,015)(136)(3,980)(1,376)
4,568
156,209(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(28,336)(66,866)(59,896)
15,799(739)(8,567)(29,963)(1,015)(29,701)(10,269)
34,0901,165,739

(173)
6,514
(52,846)(12,004)
53,331(48,829)(2,554)(156)(18,929)
(187)
(737)
1,509
(2,264)(77,325)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)(1,291)
48,612(394,373)(89,582)
397,993(364,396)(19,060)(1,164)(141,261)(1,396)(5,500)11,261(16,895)(577,052)

2,837(16,701)(1,275)(2,603)(39,060)(3,427)

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

16,699(18,752)(4,500)(1,687)(37,104)(2,600)21,172(124,634)(9,515)(19,425)(291,492)(25,575)(38)(29,788)2,847(87,208)
1,546(6,778)531,555¥524,777(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(284)(222,299)
21,246(650,806)
11,537(50,582)
3,966,828$3,916,246

Information by business and geographic segments for the years ended and as of March 31, 2023, 2022 and 2021 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

2023

2022

2021

2023

¥ 597,071
3,235
600,306
145,662
3,125
148,787
196,246239
196,485
58,876
3,012
61,88862,086
226
62,312
127,854
11,012
138,866
39,521
1,560
41,081
1,249,725(22,409)¥1,227,316¥ 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$4,455,754
24,142
4,479,896
1,087,031
23,321
1,110,352
1,464,522
1,784
1,466,306
439,373
22,478461,851
463,328
1,687
465,015
954,134
82,1791,036,313
294,933
11,642306,575
9,326,308(167,233)$9,159,075

In millions of yen

In thousands of
U.S. dollars

Years ended
March 31

Year ended
March 31

2023

2022

2021

2023

¥109,420
11,55910,504
7,090
5,807
13,112
7,519
165,011(19,459)¥145,552
20,040(2,592)¥163,000¥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$ 816,567
86,261
78,38852,91043,33697,851
56,112
1,231,425(145,216)$1,086,209
149,552(19,343)$1,216,418

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

2023

2022

2023

¥ 961,134
192,783
203,876
244,332
77,827
252,319
128,970
2,061,241
136,491
79,647¥2,277,379¥ 916,912
190,544
203,299
247,258
77,954
241,694
121,195
1,998,856
112,948
71,662¥2,183,466$ 7,172,642
1,438,679
1,521,463
1,823,373
580,799
1,882,978962,460
15,382,394
1,018,590
594,381$16,995,365

SECOM REPORT 2023

75

Financial Information and References
Financial Information and References/Consolidated Financial Statements

Other Financial Data

Segment Information

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

In thousands of
U.S. dollars

Years ended
March 31

Year ended
March 31

2023

2022

2021

2023

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

¥ 51,739
2,955
7,829
2,328
1,773
9,917
1,303
77,844874¥ 78,718¥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$386,113
22,05258,425
17,373
13,23174,0089,724
580,926
6,522$587,448

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

¥ 66,278
4,043
5,620
3,075
2,600
20,9618,108
110,685795¥111,480¥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$494,612
30,172
41,94022,94819,403
156,425
60,507826,007
5,933$831,940

The capital expenditures in the above table represent the a­ dditions 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 C­ ompany’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

2023

2022

2021

2023

¥356,962¥348,749¥344,882$2,663,896

89,20062,92087,989¥597,071

75,45962,46776,948¥563,623

69,37062,841
77,967¥555,060

665,672
469,552
656,634$4,455,754(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,
2023, 2022 and 2021 and long-lived assets as of March 31, 2023 and 2022 were as f­ ollows:

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

2023

2022

2021

2023

¥1,168,628
58,688¥1,227,316¥1,117,929
48,169¥1,166,098¥1,091,216
44,123¥1,135,339$8,721,105
437,970$9,159,075

In millions of yen

In thousands of
U.S. dollars

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

March 31

March 31

2023

2022

2023

¥798,435
15,855¥814,290¥755,252
15,125¥770,377$5,958,470
118,321$6,076,791

In millions of yen
2023

2022

2021

2020

2019

2018

Composition of consolidated net sales andoperating revenue by segment
Net sales and operating revenue........................................................ ¥1,227,316 ¥1,166,098 ¥1,135,339 ¥1,132,632 ¥1,087,355 ¥1,058,568
Security services:...............................................................................
597,071563,623
555,060
561,067
548,271547,015				 As a percentage of net sales and operating revenue....
48.6%
48.3%
48.9%
49.5%
50.4%
51.7%
		 Electronic security services........................................................
356,962
348,749
344,882
344,992
342,299
339,445				 As a percentage of net sales and operating revenue....
29.1
29.9
30.4
30.5
31.5
32.0
		 Other security services—			Static guard services...............................................................
89,20075,45969,37070,054
66,28959,054				 As a percentage of net sales and operating revenue....
7.3
6.5
6.1
6.2
6.1
5.6
			Armored car services..............................................................
62,92062,467
62,841
63,60262,41761,089				 As a percentage of net sales and operating revenue....
5.1
5.4
5.5
5.6
5.7
5.8
					Subtotal..............................................................................
152,120
137,926
132,211
133,656
128,706
120,143
		 Merchandise and other................................................................
87,98976,94877,967
82,41977,26687,427				 As a percentage of net sales and operating revenue....
7.1
6.6
6.9
7.2
7.1
8.3
Fire protection services....................................................................
145,662
148,804
140,599
151,861
140,139
136,559				 As a percentage of net sales and operating revenue....
11.9
12.8
12.4
13.4
12.9
12.9
Medical services.................................................................................
196,246
195,826
182,573
187,101
181,705
175,318				 As a percentage of net sales and operating revenue....
16.0
16.8
16.1
16.5
16.7
16.6
Insurance services.............................................................................
58,876
51,76958,291
43,515
41,63744,683				 As a percentage of net sales and operating revenue....
4.8
4.4
5.1
3.8
3.8
4.2
Geospatial information services....................................................
62,08656,371
53,90853,53551,51050,906				 As a percentage of net sales and operating revenue....
5.1
4.8
4.7
4.7
4.7
4.8
BPO and ICT services.........................................................................
127,854
115,544
112,144
99,83390,22571,475				 As a percentage of net sales and operating revenue....
10.4
9.9
9.9
8.8
8.2
6.7
Other services......................................................................................
39,521
34,161
32,76435,72033,86832,612				 As a percentage of net sales and operating revenue....
3.2
3.0
2.9
3.3
3.3
3.1
Net income attributable to SECOM CO., LTD.,
cash dividends and SECOM CO., LTD.
shareholders’ equity
Net income attributable to SECOM CO., LTD. .................................. ¥  111,558
Cash dividends paid(2).............................................................................
39,060
SECOM CO., LTD. shareholders’ equity.............................................. 1,267,205
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)...........................................

¥  107,731 ¥   89,913 ¥   87,136 ¥   89,686 ¥   96,623
38,196
37,104
37,10434,922
32,7381,209,512
1,142,323
1,088,738
1,044,184
1,000,277

2.2
0.9
0.2
3.3
6.6
93.4
100.0

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

4.9
8.8

4.9
8.9

4.2
7.9

4.2
8.0

4.8
8.6

5.3
9.7

6.4
2.6

6.7
2.5

6.9
2.6

5.7
2.4

6.8
2.5

7.3
2.3

68.9
2.81
138.8

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

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

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

76

SECOM REPORT 2023

SECOM REPORT 2023

77

Financial Information and References/Other Financial Data

Summary of Selected Financial Data

Common Stock Data
SECOM CO., LTD.
As of March 31
2023

2022

2021

2020

2019

2018

Number of shares outstanding
Issued .............................................................................. 233,299,898
Owned by SECOM CO., LTD. ....................................... 18,763,110

233,298,049
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

Balance ........................................................................... 214,536,788

218,082,831

218,261,361

218,260,410

218,260,352

218,259,868¥ 516.68
180.00¥ 492.83
175.00¥ 411.95
170.00¥ 399.23
170.00¥ 410.91
160.00¥ 442.70
150.005,906.70
700.34
1.38
15.80
11.66
8,164

5,546.11
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

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

78

SECOM REPORT 2023

(1) Per share amounts are based on the average number of shares
outstanding during each period.
(2) Subsequent to March 31, 2023, cash dividends of ¥20,381 million(¥95 per share) were approved at the general shareholders’meeting on June 27, 2023.
(3) Per share amounts are based on the number of shares
outstanding at the end of each period, less treasury stock.

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

2023

2022

2021

2020

2019

2018

24,202

23,401

21,73923,29724,02326,80936.98%
3.22
2.73
41.44
7.59
8.04
100.00%39.13%
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%

PRICE INFORMATION (TOKYO STOCK EXCHANGE)
2021
2022

2023

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

Price per share (in yen)
High
Low

¥ 9,555
8,704
8,318
9,100
9,449
9,266
8,789
8,221

¥8,201
8,027
7,536
7,610
7,917
8,132
7,511
7,301

Nikkei Stock Average (in yen)
High
Low

¥30,089.25
30,670.10
29,794.37
29,332.16
28,246.53
29,222.77
28,383.09
28,623.15¥27,448.01
27,013.25
27,528.87
24,717.53
25,748.72
25,935.62
26,093.67
25,716.86

SECOM REPORT 2023

79

Financial Information and References
Financial Information and References/Other Financial Data

Corporate Information

Common Stock Data

(As of June 30, 2023)

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.

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.
Senon Ltd.
Oriental Security Service Co., Ltd.
Far East Security Co., Ltd.
Kyokuto Keibi Center Co., Ltd.

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

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)
76.7
100.0
82.0
100.0

30
10
50
100
30
255
100
10
70
10

100.0
51.7
100.0
100.0
80.1
100.0
54.9
(100.0)(100.0)(100.0)Lines of business(As of June 30, 2023)

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 and leasing of security and water-treatment
equipment
Security services
Operation of PFI correctional facilities
Security services
Security services
Security services
Software development
Security services
Security services
Security services
Security services

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.

80

SECOM REPORT 2023

(Continued)

SECOM REPORT 2023

81

Financial Information and References/Corporate Information

MAJOR CONSOLIDATED SUBSIDIARIESMAJOR 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
20
2,303

(100.0)(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)100.0

Nittan Hokkaido Service Center Co., Ltd.
Consilium Nittan Marine Ltd.

1042(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.
Sakamoto Densetsu Co., Ltd.
Nittan Co., Ltd.

Lines of business

82

SECOM REPORT 2023

Percentageof equity/
voting rights

Insurance services
Secom Insurance Service Co., Ltd.
Secom General Insurance Co., Ltd.

¥ 100
16,809(100.0)%97.2

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 development and sales of software
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
Sales and maintenance of vehicles
Employee welfare for SECOM Group
General office services
Lifestyle support services
Design, construction and maintenance of facilities
Electrical engineering
Manufacture, sales and maintenance of freight elevators(As of June 30, 2023)

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 of electrical equipment
Installation, sales 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
Establishment and management of nursing homes
Management of nursing homes
Management of nursing homes
Management of pharmacies
Wholesaling of pharmaceuticals

Notes: 1. ( ) indicates the percentage of equity/voting rights held by both SECOM CO., LTD. and certain of its subsidiaries, or by certain subsidiaries independently.
2. Subsidiaries are categorized into segments above according to their major lines of business.

Issued capital(In millions of yen)Lines of business(As of June 30, 2023)

Notes: 1. ( ) indicates the percentage of equity/voting rights held by both SECOM CO., LTD. and certain of its subsidiaries, or by certain subsidiaries independently.
2. Subsidiaries are categorized into segments above according to their major lines of business.

(Continued)(Continued)

SECOM REPORT 2023

83

Financial Information and References/Corporate Information

Regarding Publication of SECOM Report 2023

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
Rmb29,000 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
VND160,949 million
S$5,000 thousand
S$26,476 thousand
MYR17,505 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)(97.4)(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(88.2)
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)

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, anddevelopment and sales of software
Geospatial information services
BPO services
Holding company
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 Guvenlik Cozumleri A.S.

Lines of business(As of June 30, 2023)

SECOM Report 2023 was prepared with a focus on the SECOM Group Road Map 2027—announced
in May 2023 with the aim of helping realize the SECOM Group’s Vision for 2030—and taking into
account requests and advice received in the course of dialog with a broad range of stakeholders. As
we continue working to provide services that deliver safety and peace of mind, as well as make life
more comfortable and convenient, in an ever-changing society, it is our hope that the report will
deepen readers’ understanding of the evolution of key strategies aimed at improving corporate value,
and at enhancing benefits to stakeholders.
The International Integrated Reporting Framework established by the International Financial
Reporting Standards (IFRS) Foundation (formerly the Sustainability Accounting Standards Board(SASB)) and the Guidance for Collaborative Value Creation put out by Japan’s Ministry of Economy,
Trade and Industry (METI) were referenced in the preparation of this report. Looking ahead, we willcontinue to devote our best efforts to advancing effective IR initiatives with the objective of further
bolstering corporate value.

Tatsuro Fuse
Executive Director
Head of Corporate
Communication &Marketing Division

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, 2023. (Somestrategies, as well as forecasts and expectations regarding SECOM’s

information for early in the subsequent period is included.)

performance. Actual results may differ materially from these statements.

Framework for Communicating with Stakeholders
Financial information

Nonﬁnancial information

Financial results presentations

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$107,159 thousand
INR5,926 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.
TMJP BPO Services, Inc.
The Westec Security Group, Inc.
ClearLight Partners II, LLC
ClearLight Partners III, LLC

US$5,621 thousand
PHP35,900 thousand
US$0.3 thousand——(100.0)(99.9)
100.0(99.0)(98.0)

Ordinary General Meeting of Shareholders

DialogOne-on-one/small group meetings with analysts/institutional investors
Stakeholder engagement

Annual securities report*
Financial reports and presentations

Reports

Shareholder newsletters*

SECOM Report (integrated report)

Corporate
websiteIR information

Sustainability Report

Financial data (U.S. GAAP)

ESG data
SECOM SASB Report
Corporate governance report

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.

Access IR information

Access sustainability-related information

https://www.secom.co.jp/english/ir/

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

84

SECOM REPORT 2023

SECOM REPORT 2023

85

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

Printed in Japan