The SECOM Group’s Vision for 2030

We are stepping up initiatives under the SECOM Group’s

Tha ANSHIN Platform Service Infrastructure

The SECOM ANSHIN Flow

Vision for 2030 with the aim of delivering safety and peace<Value>of mind and making life more comfortable and convenient.

Safety andpeace of mindIn
everydaylife

Life/health/assets/information

AI, IoT and Big Data

Advancepreparation

InGraspthe event of
the situation
an emergency

InMinimize
the event ofdamage
an emergency

RestoreAfteran emergency operations

Operations/emergency response services

Real-world

Cyber crimes

Risks
ks mayoccur
simultaneously
ltaneously

Natural disasters

Extensive coverage

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

Diverse risks

Conceptual framework of the ANSHIN Platform

Crimes andaccidents

Rather than stand-alone services, we strive toprovide integrated packages that deliver seamless safety andpeace of mind and provide added value that makes life
more comfortable and convenient

Illnesses/aging<Added value>

Ineverydaylife

Comfort andconvenience

Everyday concerns

Need to improve efficiency

Need to reduce costs

Need to rely on others

Issues to be addressed

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

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

Further reinforcing
SECOM’s relationships withcustomers and society

Connection strategy

Enhanced value strategy

ALL SECOM strategy
Creation ofthe ANSHIN Platform

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Collaboration strategy

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The SECOM Group’s Vision for 2030

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

In May 2018, we introduced the SECOM Group Road Map
2022, which concludes in the fiscal year ending March 31,2023, with the goal of clarifying initiatives to be implemented
to realize the SECOM Group’s Vision for 2030. In today’s
rapidly changing society, we have positioned responding totechnological advances and a declining labor force aspriority challenges. We will work actively to keep abreast ofTechnological advances have brought the expansion ofIoT services, driving greater use of drones and robots, theincreasing prevalence of unattended retail facilities andcashless transactions, and the rising popularity of smart
homes. Such changes are pushing up demand related to theneed for security in a connected society, that is, fuses
physical and cyber security. Owing to a declining labor force,
we have also seen growing demand related to the need torely on others—including from companies’ needing tooutsource noncore functions and two-income families
requiring assistance with care for children and seniors.
The spread of COVID-19 has also brought fundamental
changes related to, among others, the progress ofdigitalization and the use of ICT. Going forward, we willcontinue to promote efforts to respond to such changes byextending distinctive services that deliver safety and peaceof mind, as well as make life more comfortable andconvenient, and that help address evolving social imperatives.

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

Consolidated
revenue: ¥1.1 trillion

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

Investment phase
Consolidated revenue

Consolidated operating profit

High-growth phase

Consolidated revenue ¥1.1 trillion
Consolidated operating profit ¥155.0 billion

Consolidated revenue ¥970.6 billion
Consolidated operating profit ¥135.4 billion

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

The final year of the SECOM Group Road Map 2022p
CAGR (oeratingprofit):

3.09%

2015

2016

2017

2018

2019

2020

2021

2022

2023

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

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SECOM REPORT 2022

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

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

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