SECOM TODAY

Security Services
Our distinctive approach enables us to offer high-grade on-line security systems.
SECOM’s on-line security systems encompass the placement ofsensors at its subscribers’ premises, around-the-clock monitoring from a SECOM control center via telecommunications
circuits, the dispatch of emergency response personnel fromthe nearest emergency depot, should the sensors detect anirregularity, and, if necessary, the notification of the police
and/or fire department. Our insistence on providing emergency
response services, as well as security equipment installationand monitoring, reflects our deep-seated belief that only byguaranteeing subscribers’ safety can we honestly claim to beproviding security.
Appreciation for SECOM on-line security systems continues
to grow not only in Japan, but also in overseas markets where
we offer the same SECOM-style security services. Support
for SECOM on-line security systems reflects a number of key
competitive advantages, namely:•	Swift emergency response capabilities: Capitalizing on our
extensive experience, reflected in the prompt decision-making
capabilities of our control center staff and the fast reactions of
our highly trained emergency response personnel, we are well
positioned to respond swiftly and effectively in the event of an
emergency. Another key factor underscoring our responsivenessis our nationwide network of approximately 2,750 emergency
depots—more than any other security services company inJapan—each of which looks after only a limited geographic
area. The swift response capabilities of our control center staff
and emergency response personnel continue to earn highmarks from subscribers nationwide.
•	Comprehensive security systems that combine the capabilities of humans and equipment: Our on-line security systems
combine the speed and accuracy of sensors and communications equipment in detecting irregularities and transmitting
information with the analytical capabilities and quick action ofhumans, thereby delivering superb service quality. We give priority to fostering expert emergency response personnel capableof responding effectively in various situations through trainingthat capitalizes on our unique know-how. Highly trained staff,
together with reliable, technologically advanced security equipment, ensure our ability to provide comprehensive security
solutions that are a cut above the competition.
•	Integrated services scheme: We maintain control over every
aspect of our security services, from R&D to manufacturing,sales, security planning, installation, around-the-clock monitoring, emergency response services and equipment maintenance.
This integrated scheme underpins both our reputation for reliability and the potency of the SECOM brand, ensuring stable,
high-grade services.

14

Secom Co., Ltd.
Annual Report 2011•	In-house R&D capabilities: Our R&D organization encompasses the Secom Intelligent Systems Laboratory, which
conducts research in the area of basic technology, and theDevelopment Center, which applies basic technology to develop
new security systems. This configuration enables us to incorporate feedback from customers swiftly and accurately into
the development process, as well as to act promptly in making
modifications that enhance existing products and systems.
•	Effective training and management of human resources:
Four SECOM training centers in Japan provide training for
emergency response personnel, as well as for individuals in sales
and administrative positions, designed to transmit knowledge
and techniques. These facilities also strive to impart the SECOM
corporate philosophy and standards of conduct that employees,
as security professionals, are expected to observe. The effective
training and management of human resources is essential to
our ability to provide high-grade services.
• Ability to provide comprehensive peace of mind: In addition
to security services, we provide fire protection services, medical
services, insurance services, geographic information services,
real estate development and sales, and information and communication related and other services, which we can combine
into unique, tailored ALL SECOM packages that enable us to go
beyond simply installing security systems, ensuring our customers
feel they can turn to us anytime for solutions that will remove
sources of unease and deliver security and peace of mind.
•	Security services adapted to local markets: SECOM-styleon-line security systems continue to earn high marks in overseas
markets. One reason for this is that since launching operations
overseas in 1978, our approach has been to customize products
and services to reflect local needs and cultural sensibilities. In
April 2011, we commenced operations in New Zealand, which
is our 12th overseas market. We will continue promoting
broader market acceptance of SECOM-style security services inmarkets around the world.

With the aim of making SECOM on-line security systems available to an ever-greater number of customers, we recognize theneed to offer optimal prices. To this end, we retain ownershipof security equipment, which we rent—rather than sell—to
subscribers. As a consequence, initial costs for subscribers are
significantly lower than would be the case if they were required
to purchase equipment outright. The rental format also allows
us to take responsibility for maintenance and upkeep, facilitating prompt replacement in the event of a malfunction, or an
upgrade, and ensuring stable high-grade services.
In the years ahead, our distinctive approach and the key
competitive advantages of our on-line security systems willcontinue to support our ability to provide services of the­highest quality.

Commercial Security Services
We are promoting greater market
acceptance of SECOM security services bydrawing on our advanced technologies
and our wealth of expertise.

Responding to the diverse security needs oflarge-scale commercial facilities
Large-scale commercial facilities require sophisticated security
systems that help deter crimes and prevent accidents fromoccurring and ensure secure operation and management.
Leveraging our extensive expertise, we provide proprietary
security systems customized to suit each customer’s requirements. Orders for such security systems remain firm. Of note,
we recently signed a contract to provide a security system
for Tokyo International Air Terminal, the new internationalterminal at Haneda Airport in Tokyo’s Ota City, which openedin October 2010. Under this contract, we currently assist in
the safe operation of the terminal by providing static guard
services, airport security checks for employees and the SECOM
AED Package Service, a full-service package that encompasses
leasing, installation and maintenance of AEDs in public areas.
For JR Hakata City, the building housing Fukuoka’s main
railway terminal, which opened in March 2011, we provide
comprehensive support to help ensure the station’s secure andsafe operation. Rebuilt to accommodate the inauguration offull services on the Kyushu Shinkansen’s Kagoshima Route,
JR Hakata City has a total floor space of 200,000 m2, making
it one of Japan’s largest railway station building complexes.
Our package for JR Hakata City includes TOTAX ZETA, acomprehensive local control system for large-scale commercial
facilities; static guard services (provided by joint venture JR
Kyushu Secom, Inc.); SECOM Security Gates, which prevents
unauthorized access through building entrances; a surveillancecamera system; and TOMAHAWK JET fire extinguishing systems
for restaurant kitchens.
As these examples show, one of our greatest strengths is
our ability to combine various service systems into unique packages tailored to customers’ diverse needs. Moreover, rather
than simply selling automated security services, we also offer
static guard services provided by highly trained professionals,
thereby realizing a quality of security services only possible byintegrating systems and human capabilities. Looking ahead, we
will continue to respond to the sophisticated needs of largescale commercial facilities by capitalizing on our high-grade
security services and comprehensive human capabilities.

JR Hakata City
Secom Co., Ltd.
Annual Report 201115

SECOM TODAY

Commercial Security Services

Developing systems that facilitate automatic
detection of crimes and accelerate responses
With robberies committed by perpetrators armed with knives
or firearms on the rise in Japan, we see more situations where
victims are unable to press the emergency alarm button to
notify SECOM because they feel physically threatened. Taking
action, in the period under review, we launched the Intelligent
Emergency Alert System, which automatically detects abnormal or suspicious occurrences and alerts a SECOM control
center without the need for anyone to press a button. This
newly developed system employs a number of exclusive image
and sound processing technologies, including those usedin SECOM AX, an on-line image recognition system, and in
SECURIFACE, an intercom system equipped with a novel facialrecognition function.
Installed in critical areas, such as near a safe, the Intelligent
Emergency Alert System automatically detects, for example,
individuals wearing masks or trying otherwise to hide theirfaces, groups of individuals approaching the safe together
and someone screaming. The system simultaneously transmits
images and audio, together with an emergency signal, to a
SECOM control center and image monitoring center, where
staff promptly dispatches emergency response personnel and,if necessary, notifies the police.
The Intelligent Emergency Alert System’s ability to swiftly
detect potential robberies, break-ins and other crimes andto issue an automatic alert, expedites our response, thereby

SECOM AX

16

Secom Co., Ltd.
Annual Report 2011

helping to prevent such acts from actually occurring. Thissystem is designed for use with the SECOM IX remote imaging
security system to provide an advanced security solution. We
continue working to introduce systems that are a cut above thecompetition to a wider range of customers.

Next-generation external sensor technologies
that facilitate highly sensitive externalmonitoring of a premises
External intrusion detection systems generally involve theplacement of infrared illuminators and photodetectors aroundthe perimeter of a subscriber’s premises, wherein if the beam isinterrupted by a person in its path, an alert is issued. However,for wide areas, multiple illuminators and photodetectors are
required and physical obstacles such as trees and sheds often
make installation unfeasible. Recently, we introduced Laser
Sensor, a new sensor that resolves such problems, facilitating
effective detection of intrusions over a broad area with onlya single unit. Performance is not affected by physical impediments and the size of the area monitored can be programmed
according to requirements. The sensor also boasts an autonomous learning function, enabling it to automatically reset itself
if objects are shifted in the monitored area. Used in tandemwith a SECOM on-line security system, the sensor automaticallysends an emergency signal to a SECOM control center should
an intrusion be detected.

Intelligent Emergency Alert System

Laser Sensor is particularly appropriate for monitoring large
premises, including factories, offices, stores, schools, construction sites and materials storage yards. We will continue actively
to market this system as an attractive alternative for locations
where conventional detection systems are unsuitable.

Development of a stereoscopic facial recognition
access control system using 3D images
In recent years, intrusions and personal information leaks
attributable to the loss or copying of employee ID cards havebecome issues of paramount concern for companies. To
preclude such intrusions, many companies have introduced
access control systems employing biometric authentication
based on, for example, fingerprint, palm vein identification
or facial recognition. Drawbacks to conventional facialrecognition-based access control systems include the fact that
individuals must stand still facing a camera and the need for
manual system operation.

Responding to perceived needs, Secom Intelligent Systems
Laboratory has for some time been promoting the development of facial recognition systems that use surveillancecameras to manage access control and detect suspicious
persons. Individuals do not need to follow specific procedures,
but can simply proceed in a normal fashion. In 2011, we
expect to launch a stereoscopic facial recognition system,
the Walkthrough Face Recognition System. The new systembuilds on our exclusive image processing technologies, which
are integral to such offerings as SECOM AX, SECURIFACE andSESAMO IDs, our fingerprint-based access control system.

SECOM control center

Centralized (On-Line) Security Systems

SECOM sticker

Flashing light

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

Light flashes if the system detects anabnormality to warn people in thevicinity and to guide
SECOM emergency
response personnel
dispatched to thecustomer’s premises.

Subscriber

Police
Dept.
Fire
Dept.

Alert using
1 telephone
circuits

Dispatch SECOM emergency
3 response
personnel

Gas
Company• Alert emergency
services asnecessary

SECOM
Control Center

SECOM
Emergency
Depot
Alert SECOM emergency
2 response
personnel

Laser Sensor
Secom Co., Ltd.
Annual Report 201117

SECOM TODAY

Commercial Security Services

The Walkthrough Face Recognition System works byautomatically constructing a 3D image of each individual froma registered photograph of the face. Surveillance camera footage is then matched to this image to identify the individual.
Because this system uses 3D images, it easily accommodates
natural variations in features and posture—something notpossible with existing facial recognition systems. Moreover, thesystem can process approximately 60 individuals per minute,allowing it to function effectively during high-traffic periods,
such as the beginning and end of the workday. In addition toemployee access control, the system is suited for identifying
visitors who have previously called and been registered. By
facilitating accurate, speedy facial recognition, the system
will greatly enhance the convenience and efficiency of access
control. Going forward, we will continue to develop andcommercialize groundbreaking service systems that reflect our
distinctive capabilities.

Contracts forCentralized Security Systems(As of March 31, 2011)

Home

Service industries
Retailing/wholesaling
Financial services
Manufacturing
Government agencies
Other
Home

Walkthrough Face Recognition System

18

Secom Co., Ltd.
Annual Report 2011

Commercial

11.2%
6.8%
6.6%
5.9%
5.0%
23.4%
41.1%

Home Security Services

By capitalizing on our distinctive­capabilities, we continue responding
to the increasingly diverse needs of­homeowners for security and peace ofmind by providing residential security
products and services, centering on thegrowing SECOM Home Security system.
SECOM Home Security: Leveraging a wealth ofexperience and know-how accumulated overthree decades
In 2011, we celebrated the 30th anniversary of SECOM Home
Security, which we first introduced in 1981. Over the past three
decades, we have expanded and modified the system’s products and services in response to evolving social imperatives andlifestyles, as well as to changing patterns of criminal activity.
SECOM Home Security comprises sensors and other security
equipment, which are placed in and around subscribers’
homes, providing around-the-clock monitoring for intruders,fires and gas leaks, sending emergency alerts and calling for
emergency medical attention. In the event an irregularity isdetected, the system alerts a SECOM control center, where
staff respond by assessing the situation, dispatching emergency
response personnel and, if necessary, notifying the police and/or
fire department.
In 1982, we introduced My Doctor, a pendant-style emergency medical alert system as an option for SECOM Home
Security subscribers that, when activated, sends an emergency
signal to a SECOM control center. In 2003, we added SECOM
Medical Club, which gives subscribers access to telephone-based

SECOM Home Security

health counseling and lifestyle assessments. Two years later, we
inaugurated SECOM Home Service, further enhancing our ability
to provide homeowners with security and peace of mind.
In light of the rising incidence of vicious crimes in Japan, in
recent years we have reinforced the products and services weoffer to SECOM Home Security subscribers. Examples include
our External Image Monitoring service, which detects intruders
and transmits images to a SECOM control center; SECURIFACE,
an intercom system equipped with facial recognition; andSECOM Anshin Glass, a high-impact, breakage-resistantwindow glass that prevents break-ins. Looking ahead, we willcontinue striving to provide ever-greater security and peace ofmind for SECOM Home Security subscribers.
In December 2011, we plan to launch SECOM Home
Security G-Custom, a system that brings together a variety ofservices that enhance security and peace of mind and make life
more convenient. One of these services allows subscribers, forexample, to entrust family photographs, emergency contact
information, information on prescription medications, to us
for storage at a SECOM Secure Data Center, thereby ensuring
such information is available in the event of an earthquake orother major disaster. A new function enables subscribers tocheck on the safety of elderly parents living far away, as well as
to share photographs and messages with family members andother relatives using the
SECOM Home Security
network. This new
home security service
system, which combines
our extensive expertisein crime ­prevention andother security services
and in information
SECOM Home Security G-Custom
Secom Co., Ltd.
Annual Report 201119

SECOM TODAYHome Security Services
security, is evidence of the excellence of our R&D capabilities.
By continuing to develop such attractive new home security
services, we will work to promote greater awareness of theconcept of home security.

Expanding SECOM Home Service’s geographic
coverage and service menu
Launched in 2005, SECOM Home Service is a suite of close to
100 convenient, high-grade lifestyle support services developed
for SECOM Home Security subscribers. Demand for these
popular services has grown steadily since. In June 2010, we
expanded the availability of all but a few of these services
to include nonsubscribers, a move that has further spurreddemand.
At present, the SECOM Home Service menu includes Anshin
Support Service, whereby SECOM staff assist in resolving
concerns that arise in everyday life by, for example, patrolling around subscribers’ homes when occupants are away.
Troubleshooting Support Service includes assistance in resolving
unforeseen problems, such as lost keys. Housework Support
Service provides help with housekeeping and around-the-housejobs. The SECOM Home Service Pack is a special plan thatallows customers to sign up for services that suit their lifestyles
on an annual basis. We continue to promote the expansion ofthis menu. Recent additions include Family Support Service,
which provides short-term assistance with such tasks as tidying,cooking meals, doing laundry and airing bedding, and Family
Grave Management, whereby we look after maintenance of thefamily grave on behalf of customers. We have also expanded
our service area, as a result of which SECOM Home Service is
now available in almost all parts of Japan.
Owing to the rapid aging of Japan’s population andthe growth of the nuclear family, we expect to see further
growth in demand from seniors for lifestyle support services.
Accordingly, we will continue to broaden our service menu toaccommodate the needs of this important market.

SECOM Home Service (Family Support Service)

20

Secom Co., Ltd.
Annual Report 2011

SECOM AS: Responding to needs in the rental
housing market
One of the most important considerations for many individuals
renting apartments or small multifamily dwellings is the building’s security.
In Japan, the number of seniors living alone is on the rise,
underscoring an increase in the need for home security systems
that help prevent crime and fires. With this in mind, and withthe aim of providing security and peace of mind for such individuals, as well as providing systems that help property owners
enhance the appeal of their units, recruit potential tenants andensure the stability of building management, we developed
SECOM AS, a home security system designed especially forsmall-scale rental housing complexes with a built-in intercom
system. Separate controls in each apartment not only enable
tenants to use both the intercom and security functions, thus
providing protection against burglary, but also enable themto alert a SECOM control center, should they feel ill at ease or
require emergency medical services, greatly enhancing peace ofmind. With the launch of SECOM AS, which offers significant
benefits to both building owners and tenants, we are steppingup efforts to promote security for the rental housing market
and bolster demand.

SECOM AS home security system forsmall-scale rental housing complexesOther Security Services

mamorino 2

COCO-SECOM continues tofind new applications. With the aimof helping to save lives, we are working to promote wider
acceptance of the SECOM On-Line AED Management Service.
Expanding applications for COCO-SECOM­continue to drive sales
The launch of the COCO-SECOM mobile security systemfor outdoor use in 2001 marked our expansion into thearea of location tracking systems for individual subscribers.
COCO-SECOM uses signals from Global Positioning System(GPS) satellites and cellular phone base stations to pinpoint
the location of portable transmitter devices with outstanding
precision. Simply by pushing the alert button on the device,an individual in danger can instantly notify the COCO-SECOM
operations center. The operations center will dispatch emergency response personnel whenever needed.
Initially advanced as a way to prevent child abductions,locate elderly people who had wandered off and avert thetheft of cars and motorcycles, today’s COCO-SECOM is
attracting attention for a wider range of applications, including preventing the theft of handbags or construction equipment, managing taxi and bus fleets and thwarting vandalism
and removal of automated teller machines (ATMs).

Cellular phones for children with COCO-SECOM asa standard feature (mamorino and mamorino 2)
earn high marks
Designed to provide security for preschool- and primaryschool-age children, mamorino was developed in collaboration
COCO-SECOM Mobile Security System(Location and Emergency Response)

GPS satellite
Positioning
information

COCO-SECOM
Operations
CenterNotification of police(if warranted)

Cellular phonebase station

SECOM
Emergency
Depot

Request forsearch(telephone/Internet)

Subscriber

COCO-SECOM Transmitter
Device (vehicle-mounted)
COCO-SECOM
Transmitter
Device (portable)

Policedepartment,
emergency
serviceswith a major telecommunications company. If a child feels
threatened, all he or she has to do is sound the phone’s
security alarm to alert the COCO-SECOM operations center,
which then tracks the child’s location. The operations center
then makes contact with the child and a parent or guardianand, if requested, dispatches emergency response personnel to ensure the child’s safety. Because it does not have a
web browser function and allows only a limited number of
telephone/email contacts, mamorino also protects children
from potential trouble arising from Internet and e-mail use.
In March 2011, we launched mamorino 2, with expanded
performance features, including a function that ensures location tracking and security alarm services remain active evenwhen the phone is turned off during class hours, as well as afunction that enables parents and guardians to keep an eye on
their child’s movements using a smartphone or a computer.

New around-the-clock AED management services
We currently offer the SECOM AED Package Service, a fullservice package for automated external defibrillators (AEDs).
However, with the installation of AEDs expanding in Japan,
there have been a number of incidents recently in which
devices have failed at a critical moment as a result of maintenance lapses. In response, we developed the SECOM On-Line
AED Management Service, an automated daily maintenanceservice that ensures AEDs are kept in proper working orderaround-the-clock.
One of our principal goals as a corporate entity is tocontribute to a society free from apprehension. Accordingly,
we see promoting further market
acceptance of AEDs as an importantmission. Going forward, we will
actively market the SECOM On-Line
AED Management Service with theaim of further helping to save lives.

Dispatchemergency
response
personnel(if requested)

SECOM On-Line AED
Management Service
Secom Co., Ltd.
Annual Report 201121

SECOM TODAY

Overseas Security Services
We continue to grow our overseas
operations by offering comprehensive,high-grade security services customized toreflect local needs and cultural sensibilities.

Emergency response personnel (Thaisecom Pitakkij Co., Ltd.)

Solid results from overseas security businesses
Our first inroads into overseas markets were in 1978, when
we began operating in Taiwan. In the years since, we have alsoestablished operations in the Republic of Korea (ROK), the PRC,
Thailand, Malaysia, Singapore, Indonesia, Vietnam, the United
Kingdom, Australia, New Zealand and the United States.
The distinguishing feature of our overseas security services isthat we offer SECOM-style on-line security systems customized
to reflect local needs and sensibilities. By this, we mean not
only installing equipment and monitoring customers’ premises
from a control center, but also dispatching highly trained emergency response personnel and, if necessary, contacting thepolice and/or fire department. This is the same comprehensive
approach we use in Japan, which differs significantly from theon-line security systems offered by European and U.S. security
service providers—which, as a rule, specialize in sales, installation or monitoring—in that it enables us to better provide
customers with security and peace of mind. Demand for suchservices continues to grow steadily in overseas markets.

Expanding operations in key markets
Recognizing the tremendous potential of the local market,
we began offering services in the PRC in 1992. Initially, ourfocus was on offering on-line security systems in the citiesof the PRC’s high-growth coastal areas. Since then, we havebroadened our service network to include inland cities. Today,
our services encompass 18 cities—Beijing, Tianjin, Dalian,
Shenyang, Qingdao, Shanghai, Suzhou, Wuxi, Kunshan,
Hangzhou, Ningbo, Fuzhou, Xiamen, Shenzhen, Guangzhou,
Dongguan, Chengdu and Xi’an—and we continue to see solid
growth in our subscriber base.

The PRC has approximately 2,400 state-operated security
services companies, as well as numerous internal private firms
and foreign-affiliated firms, as a result of which the local
market is intensely competitive. At the same time, heightenedawareness of the need for effective security has spurreddemand for high-grade services. In this environment, recognition of the intrinsic value of SECOM-style on-line security
systems is rising. In 2008, we established an R&D center inShanghai, better positioning ourselves to develop the products
and services suited to local market needs.
In Taiwan, subsidiary Taiwan Secom Co., Ltd., enjoys theleading share of the Taiwanese security services market. Taiwan
Secom is also publicly listed on the Taiwan Stock Exchange.
Maintaining the SECOM business model, Taiwan Secom rents
security equipment and enters into long-term contracts with
subscribers. The company’s subscriber base continues toincrease steadily.
In the ROK, joint venture S1 Corporation is currently thecountry’s top security services company and is listed on the
Korea Exchange. S1 provides an extensive selectionof security services toan increasing numberof subscribers, including
homeowners, companies
and large-scale commercial
facilities.

Emergency response personnel(Shanghai Secom Security Co., Ltd.)

22

Secom Co., Ltd.
Annual Report 2011

Control center (Secom Australia Pty. Ltd.)We are also expanding SECOM-style on-line security systems
in Southeast Asia by providing products and services that
respond to local needs in individual markets. A market leader inThailand, we are not only active in the private sector, but also
participate in large-scale public sector projects, reinforcing ourposition in the Thai market as a comprehensive security services
firm. In Malaysia, we supply security systems combining static
guard services and security equipment to local companies, aswell as to the local subsidiaries of foreign companies, including
those from Japan, and enjoy a strong competitive advantage.
In Singapore, we are developing distinctive products and providing broad-based services that accommodate a trend toward
the outsourcing of social services. Our focus in Indonesia is on
antiterrorism security products suitable for airports, harbors,
major facilities and high-rise office buildings, among others,
and we have grown to become a leader in the local security
services market.
In the United Kingdom, our track record as a provider ofhigh-grade on-line security systems has earned us a solid reputation. Our expanding U.K. subscriber base currently includes
major financial institutions, retail chains, companies, public
facilities and large-scale facilities, as well as private homes.

Broadening our geographical coverage to
12 countries and territories
Our presence in Australia dates back to 1990, when we beganproviding a full menu of services, including on-line security
systems, static guard services, equipment installation andmaintenance, among others, earning solid praise from customers. Our subscriber base in Australia currently comprises major
corporations, financial institutions and public offices. Many of
our Australian customers also have bases in New Zealand.
Having thus recognized significant demand in New Zealand,
we acquired a local company and began offering SECOM-stylesecurity services. Prior to the acquisition, the company—which
has since been renamed Secom Guardall Ltd.—specialized in
the sale of security equipment and maintenance and inspection
services, and enjoyed a significant share of the local market
for security services for major financial institutions and retailchains. Today, Secom Guardall is leveraging its broad service
menu, which integrates its predecessor’s security equipment
sales and maintenance and inspection services with SECOM’son-line security systems and static guard services, to cultivate
new demand nationwide.

Head office and local staff (Secom Guardall Ltd., New Zealand)
Secom Co., Ltd.
Annual Report 201123

SECOM TODAY

Fire Protection Services
Nohmi Bosai’s technological capabilities andwealth of expertise are enabling us to develop
new systems and respond to rising demandin the renovations market.
High-rise fire prevention center

Providing comprehensive fire protection systems
Subsidiary Nohmi Bosai is a leading name in fire alarms andother fire protection systems, with an extensive lineup that
includes products for office buildings, plants, tunnels, culturalproperties, ships and homes. A provider of integrated services,
Nohmi Bosai takes responsibility for R&D, assembly, planning,
installation and maintenance, an approach that has earned it
the trust of customers nationwide.
In recent years, the deterioration of older office buildings
has stimulated demand for renovations to update automatic
fire alarm systems and other equipment. Responding to
demand in this market, Nohmi Bosai is drawing on its achievements, and on the solid trust of its customers, to bolster
orders from those undertaking renovations. With many older
high-rises due to be renovated, demand for replacement offire alarm systems is expected to expand in the future. Nohmi
Bosai has established a department dedicated to the aim of
improving its ability to provide solutions to customers in therenovations market and bolstering orders.
In the area of fire extinguishing equipment, Nohmi
Bosai’s product lineup includes sprinkler systems, foam fire
extinguishers, such as those found in parking lots, and gas
fire suppression systems for locations that preclude the use ofwater-based systems. Boasting advanced technologies in thearea of fire extinguishing systems for industrial plants, factories and road tunnels, the company continues to capitalize on
its reputation for excellence in customized fire extinguishingsystems to cultivate new orders.
As an integrated services provider, Nohmi Bosai views
maintenance services as a crucial responsibility. Regular
maintenance calls are also opportunity to strengthen relations and enhance customer satisfaction because they enableNohmi Bosai to keep abreast of the condition of its customers’
systems. This approach also gives Nohmi Bosai a distinct
competitive advantage when it comes time for customers
to replace existing systems, a key factor in securing orders
for new installations and another reason for the company’semphasis on maintenance services.

24

Secom Co., Ltd.
Annual Report 2011

Leveraging a solid record in the provision ofsystems for large-scale facilities to develop
innovative fire protection systems
A pioneer in Japan’s fire protection services industry, Nohmi
Bosai has built a solid record in the provision of systems
for large-scale facilities, achieving growth and securing its
position as the first choice of customers who place a highemphasis on safety. Recognizing the importance of adding
value in distinguishing its products and services from those of
its competitors, Nohmi Bosai has leveraged its technologicalcapabilities and wealth of expertise to develop and launchsuch innovative offerings as PROTECTVIEW, a fire detection
and alarm system that monitors for early signs of fire, thereby
minimizing damage; Group Home Sprinkler System, a dry-pipe
extinguishing system that is connected directly to a water pipe,
for designated social welfare facilities; and Dry Mist, whichuses sprinkler technology to reduce ambient temperature.
Going forward, Nohmi Bosai’s development prowess andaccumulated technologies will continue to underpin its efforts
to respond to evolving social imperatives and shape the fire
protection services industry, adding new value to products andsystems that enable it to further bolster orders.

Clean room testing of fire
extinguishing system

Water spray system installedin road tunnel

Medical Services
By providing comprehensive services in the medicalcare, personal care, social welfare, health care andpreventative care fields, we are giving new form to
our ideal of providing security and peace of mind.
Alive Setagaya Nakamachi

Home Medical Services: An expanding businessOur decision to diversify into medical services reflected ourbelief that protecting the health and lives of people is a naturalextension of our commitment to provide security and peaceof mind. Today, our medical services business encompasses awide range of services in the medical care, personal care, social
welfare, health care and preventative care fields.
Home Medical Services—a mainstay of this business—centerson home nursing, which involves regular visits by nurses topatients in their homes to provide expert nursing services andtreatment in accordance with the instructions of the patient’s physician, and pharmaceutical dispensing and home delivery services.
Our home nursing services, which began in 1991, are rated
favorably by customers. This reflects a number of factors, including our rigorous proprietary training program, which is designed
to further hone the skills of our visiting nurses and enable themto provide highly professional services. Our pharmaceuticaldispensing and home delivery services range from the dispensing
and delivery of common oral and topical medications to theprovision of specialized services for home health care patients.
These include the dispensing of nutrient solutions for parenteralnutrition, pain relief injections and home visits by pharmacists toprovide guidance on the use of prescribed medications.
In June 2011, we opened SECOM Home Health Care Center
Kugayama, a facility providing total services that combine conventional home nursing with homepersonal care. The same month, we
introduced Karada ViBI, a new brandof products in our mail-order healthfoods business, which we launched in
1998. We are currently marketing thisnew brand, highlighting its emphasison safety and quality.
Home nursing services

Expanding our service menu to respond to theneeds of an aging society
In October 2010, we opened Alive Setagaya Nakamachi, our12th residence for seniors, in Tokyo’s Setagaya City. Equippedwith the SECOM IX remote imaging security system, as well

as SECOM Active IC Tag System, which controls access to thefacility using IC tags, eliminating the need to swipe cards over acard reader, the new facility makes full use of SECOM’s capabilities in the security services field to ensure the safety of residents.
In April 2011, we opened SECOM Senior Club Fujigaoka, a
day service center. This is the fourth facility in the SECOM SeniorClub series, conceived to help seniors enjoy more fulfilling lifestyles. The new facility has received high marks from local seniors.

Collaboration among 17 associated hospitals toenhance operating efficiency and quality of care
We have established an association with 17 local hospitals,
enabling us to ensure top-level care and earning us a reputation
for reliability.
New Tokyo Hospital, in Matsudo, Chiba, is recognized forexcellence in the treatment of cardiovascular disease. Seeking tocater to international patients, New Tokyo Hospital is currently
building a new facility, completion of which is scheduled for 2013.
We also provide a variety of support services for hospitals andclinics that help enhance operating efficiency and the quality ofcare provided. Particularly notable are Hospinet, a remote image
diagnosis support service, and SECOM Ubiquitous Electronic
Medical Report, a medical report system that ensures safe storage of medical records and common access by all members of apatient’s medical team.
Home Medical Services
Prescription

Medical Care
Institution

Physician’s guidelines
Nurse’s report

Coordination
Home Nursing
Services

Pharmaceutical
Dispensing andHome Delivery Service(SECOM Visiting
Nurse Station)(SECOM Pharmacy)

Consultation
Prescription
Nurse visit

Pharmaceutical delivery

Patient

Outpatient care

Secom Co., Ltd.
Annual Report 2011

25

SECOM TODAY

Insurance Services
Sales of our distinctive non-life insurance policies
continue to expand.

SECOM Anshin My Home call center

Revision of SECOM Anshin My Home enhancescompetitiveness

MEDCOM unrestricted cancer treatment policy
subscriptions are on the rise

Diversification into the non-life insurance business came about
as a result of our conviction that augmenting our security
services, which provide prior protection, with insurance, whichlooks after people in the event of misfortune, would reinforce
security and peace of mind.
We have developed a lineup of distinctive non-life insurance policies that capitalize on the strengths of the Group.
Notable offerings include the Security Discount Fire Policy, forcommercial customers, and SECOM Anshin My Home, for­residential customers. These policies are aimed primarily at
on-line security services subscribers that take into account therisk-mitigating nature of on-line security systems and offer a
discount on regular premium rates to such customers, thereby
reducing their costs.
In January 2011, we began offering a new, more competitive version of SECOM Anshin My Home. As a consequence,customers can now choose from among three versions of thispolicy—Wide, Basic or Slim—which they can configure to suit
their own needs by adding options, which include special­policy conditions, tailoring the policies to their requirements.
Additionally, we offer discounts for houses with exclusively
electrical—i.e., no gas—appliances and improved fire resistance. Such efforts contributed to an increase in thenumber of ­policies. We also
continue to benefit from­considerable s­ ynergies among
our businesses. In some cases,
the drawing up of a security
system contract prompts a
subscriber to purchase insurance, while in others the decision to purchase insurance
encourages a customer to sign
up for security services.

One of our most popular insurance policies is MEDCOM,an unrestricted cancer treatment policy that provides fullcoverage for hospitalization and medical treatment costs, forboth those covered under Japan’s National Health Insurance
scheme and those that are not, for which the patient normallybears the full cost. In April 2009, we enhanced coverage
under MEDCOM to include outpatient treatment, placing norestrictions on the number of days of outpatient treatment
allowed and providing coverage for outpatient treatment of
up to ¥10 million for each five-year period. This improvement
has supported steady growth in subscriptions. MEDCOM
continues to earn high acclaim not only from subscribers,
but also from insurance industry experts. Looking ahead, we
will continue to actively market MEDCOM with the aim ofenabling people to take advantage of the most appropriate
treatment options available.

Head office ofSecom General Insurance Co., Ltd.

26

Secom Co., Ltd.
Annual Report 2011

Enhancing our unique SECOM Anshin My Car
automotive insurance policy
SECOM Anshin My Car is a unique policy that includes
on-site support by SECOM emergency response personnel if
requested by the policyholder. In the event of an accident, thisservice plays a significant role in easing the anxiety of vehicle
owners in the immediate aftermath of an accident.
Looking ahead, we will step up efforts to market these­policies by highlighting the distinctive benefits of insuringwith SECOM.

Geographic Information Services
We are making use of our geospatial information
capabilities to expand our services in such areas
as satellite image data, as well as to strengthen
our overseas operations.
Section of a national land map

Broadening geographic information services thatutilize satellite data
Subsidiary Pasco Corporation began as a provider of measuring
and geographic data services based primarily on aerial photography. Today, the company is leveraging its capabilities toprovide geospatial information services for the development ofsocial infrastructure crucial to both public-sector planning andprivate-sector corporate management.
Since 2008, Pasco has provided image data offered by theoperator of TerraSAR-X, a German commercial satellite thatdelivers images with higher resolution than other commercial
satellites. To reinforce its satellite image-based geospatial
information services, in January 2011 Pasco completed the
PASCO Hokkaido Ground Station, a receiving station in
Chitose, Hokkaido. This is its second such facility, joining thecompany’s first domestic receiving station in Itoman, Okinawa.
The addition of a new receiving station has facilitated extension of the usable pass time—the length of time the satellite is
contactable when it is above a certain location—to 16 minutes,
from 10 minutes, an achievement that will make a crucial difference when applied to disaster prevention and environmental
monitoring, ­contributing to greater security and peace of mind.
Pasco enjoys exclusive rights in Japan and nonexclusive
rights worldwide to sell image data generated by the operatorof TerraSAR-X. The image capturing ability of TerraSAR-X is
not affected by the weather, ensuring high-grade, timely data.
At present, with rights to utilize data from a total of 14 commercial satellites, Pasco works tirelessly to enhance the quality

PASCO Hokkaido Ground Stationof the data it provides. A proponent of the importance ofsatellites in monitoring natural disasters, Pasco analyzed image
data from TerraSAR-X from before and immediately after theGreat East Japan Earthquake to pinpoint the devastated areas.
Pasco also prepared map data, which it distributed to relatedorganizations and government agencies, helping ensure aswift, accurate grasp of the situation on the ground, as wellas assisted relief efforts, bolstering awareness of the value andeffectiveness of satellite monitoring in times of disaster.
In Japan, Pasco has participated in the ASNARO (Advanced
Satellite with New system ARchitecture for Observation)
project, an initiative for developing an advanced small satellitethat can be built and launched for short periods and at a low
cost. Pasco is in charge of developing a compact integrated
mobile receiving station for the satellite. This system will ensure
a highly effective reception framework capable of functioning
even in the event of damage to the communications infrastructure, enabling Pasco to go to affected areas and receive,
process and provide satellite image data.

International orders continue to grow
Pasco has established subsidiaries in a number of countries,
including Finland, Brazil and Belgium, with the aim of submitting tenders for overseas projects. Demand for better infrastructure is rising in developing countries, resource-rich nations andemerging economies. Beginning in the period under review,
Pasco is assisting in the preparation of mapping data for theisland of Sumatra, in Indonesia, a project that is expected totake three anda half years
to complete.
Looking ahead,
Pasco will makeuse of its group
network in Asia,
Europe and Brazil
to broaden thegeographic scopeof its services.
Integrated Mobile Station(1/12 scale model)
Secom Co., Ltd.
Annual Report 201127

SECOM TODAYReal Estate Development and Sales
This business encompasses the development
and sale of condominiums withadvanced security features.

Glorio Roka-koen

Glorio Roka-koen honored with an award forexcellence in condominium complexes
In line with our emphasis on peace of mind and comfortableliving, we develop and sell condominiums in the Glorio series,
which are equipped with advanced SECOM security systems.
A notable example is Glorio Roka-koen, in Tokyo’s Setagaya
City. This complex combines SECOM MS-3, a security systemdeveloped specially for condominiums, with around-the-clock
access control, as well as the SECOM IX remote imaging

security system and a sensor-equipped perimeter fence, toprovide quality homes that are safe and secure. In the period
under review, Glorio Roka-koen was honored with an award
for excellence in condominium housing from the Japan
Residential Land Development Federation. In presenting thisaward, the organization praised the complex’s design concept,
which emphasizes harmony with nature, spacious freestanding
blocks and secure living.

Information and Communication Related and Other Services
We are enhancing our service menu to
respond to increasingly diverse needs for
effective information security and BCPs.

New Secure Data Center (left)

Services provided by new Secure Data Center
facility earn high marks
Our Secure Data Center has provided data security services
rated among the best in Japan since it opened in 2000. The
facility houses servers, as well as important data, entrusted to
us by subscribers, who include prominent financial institutions.
In recent years, we have seen a sharp increase in demand for
effective solutions that prevent the leakage of classified andpersonal information and for assistance in formulating BCPs
to facilitate the swift restart of operations in the event of amajor disaster. Responding to such needs, in August 2010, we
opened our fifth Secure Data Center facility, which provides
a highly secure environment, thanks to sophisticated SECOM
security features, including an access control system that
capitalizes on our extensive expertise in such systems, as well

28

Secom Co., Ltd.
Annual Report 2011as a biometric identification system and metal detectors. The
facility also offers around-the-clock information monitoring
provided by our highly trained information security staff,
ensuring instantaneous response in the event of a breach.
Other key features include a safe location and an advanced
seismically isolated design. In addition to data center services,which include housing servers, our Secure Data Center facilities
function as a base from which we provide operational andmanagement support for customers’ data systems, as well as
SECOM cloud computing-based services, including SECOM
Safety Confirmation Service. These and other features continue
to bolster the Secure Data Centers’ subscriber base.
Our Secure Data Center facilities once again proved theirworth in the Great East Japan Earthquake of March 11, 2011.
Despite the disaster and rolling blackouts implemented in its

Secure Data Center
server room

aftermath to save power, these facilities continued to operate
uninterrupted, thus ensuring customers’ valuable information
assets were securely
protected. Entrusting
servers to a SECOM
Secure Data Center
facility has recently
attracted the attention of companies
that recognize this asan effective way to
reduce their consumption of e­ lectric power.
Disaster monitoring center

Demand continues to expand for SECOM Safety
Confirmation Service
SECOM has acquired a significant reputation as a providerof services designed to support business continuity and help
ensure the prompt resumption of operations in the eventof a major disaster. Of particular note is SECOM Safety
Confirmation Service, which helps confirm the safety of
employees and assess the extent of damage. The service’s
effectiveness and ease of use continue to attract acclaim from
customers, who range from government agencies to privatesector corporations.
Support for SECOM Safety Confirmation Service reflects
broader awareness of the need for stringent risk management
following the Japanese government’s publication of guidelines
for BCPs. The service was effective in the wake of the Great
East Japan Earthquake, drawing considerable attention from avariety of quarters. Our technological prowess, which enables
us to customize products and services to suit the needs ofcustomers, together with our extensive consulting capabilities,
are key factors. In recent years, we have also offered SECOM
Safety Confirmation Service SCM, which enables subscribers to
confirm the safety of and the extent of damage to key suppliers, and SECOM Safety Confirmation Service GS, which enables
subscribers to confirm the safety of overseas employees. We
continue to develop and add new performance features to
SECOM Safety Confirmation Service in response to arisingneeds, including functions that assist companies to manage
exposure to new strains of influenza, make inquiries in English,
and gather together personnel with capabilities necessary tofacilitate a swift return to business.
We are further applying our know-how in security services
and the foundation we have established with SECOM Safety
Confirmation Service to provide risk management services. Oneof these is Initial Response Operations Service, whereby ourexpert staff provide around-the-clock services in the aftermathof a major accident or information leak, which encompasses
handling queries from employees and other involved parties
and swiftly notifying executives and other pertinent individuals
in charge on the customer side. Another is SECOM Emergency
Contact Network Service for everyday emergencies, whichfacilitates efficient contact via e-mail and enables an administrator to confirm collated responses, thus ensuring the swift
communication of information. Used together, Initial Response
Operations Service and SECOM Emergency Contact Network
Service ensure effective emergency communication from themoment a disaster occurs.
In the information security field, our offerings include
SECOM Information Leak Assessment Service, whereby ourexpert staff carefully examine the customer’s information systems and diagnose problems regarding risk of an information
leak. This service continues to find application in a wide range
of industries and fields.
Drawing on our accumulated expertise in information
security and our reputation as a professional in the field, we
have launched SECOM Professional Support, which provides
around-the-clock support in the event of a widespreadcomputer virus infection or unauthorized network access. This
service, whereby we dispatch SECOM information security professionals to the subscriber’s premises, has earned considerable
acclaim from customers.

New Secure Data Center monitoring room
Secom Co., Ltd.
Annual Report 201129

TOPICS

Environmental Initiatives
With the belief that protecting the environment is essential to our ability to provide security and peace ofmind, we continue to promote environmental initiatives in line with our basic environmental philosophy,
which is to incorporate consideration for the environment in all areas of our operations.

• A recycling-oriented, low-carbon businessmodel• Reducing the environmental impact of ouroperations

In our on-line security services business, we provide security
equipment on a rental basis, rather than selling it, and takefull responsibility for management, including the collection
after use. This enables us to minimize waste, as well as toreuse and recycle in an efficient manner. Our efforts to ensure
a recycling-oriented, low-carbon business model also encompass the promotion of green purchasing and environmentfriendly design.

We are currently implementing a
program aimed at replacing theapproximately 5,000 cars currently
used in our security services businesswith environment-friendly vehicles. Asof the date of this annual report, thiseffort was 84% complete. We have
Electric scooter
also begun using electric scooters inthis business, a move aimed at helping to reduce CO2 emissions from our operations. Additionally, we are implementing
the “Eco-Anzen Drive,” an initiative that aims to reduce theamount of fuel used by our vehicles when in operation, as wellas to promote safe driving. These initiatives were recognizedwith an award for contributions to the preservation of air
quality in 2010, from Japan’s Ministry of the Environment.
On another front, we are taking decisive steps to reduce
our environmental footprint through measures designed
to improve facility efficiency, including the installation of
low-power lighting, voluntary initiatives aimed at making ouroffices more environmentally sound, and the establishment of
SECOM Eco Team, which encourages environmental initiatives
at home. We will continue working to implement lifecycle
assessments (LCAs) with the aim of ensuring the environmental
soundness of our various products over their entire lifecycle.

• SECOM Eco Data System supports corporate
efforts to reduce energy consumption
The SECOM Eco Data System is the first product to come outof our new environmental protection business. The system­calculates and displays electric power, gas and other energy
consumed, and is aimed at the approximately 10,000 companies in Japan obliged to report such information under therevised Law Concerning the Rational Use of Energy, which wasenacted on April 1, 2010. By making energy use visible, thesystem assists the efforts of companies obligated under thelaw to achieve a 1% annual energy reduction to promoteenergy-saving initiatives.

Corporate Citizenship Efforts
In the aftermath of the Great East Japan Earthquake, which
struck on March 11, 2011, we took immediate action, rallying the entire Group with the aim of providing assistance topeople in areas devastated by the earthquake and subsequenttsunami. On March 15, we donated five million hygienic masks
and 10,000 liters of hand disinfectant to evacuation sites, withthe aim of helping prevent the spread of viral infections andto provide respiratory protection against dangerous particles
released during the post-disaster cleanup of destroyed homes
and buildings.
On March 26, subsidiary Secom Medical System andthe medical staff of its associated hospitals established theSecom Disaster Medical Assistance Team (SDMAT), a squadof doctors, nurses and other medical professionals. SDMAT
was promptly dispatched to help provide vital health careservices at evacuation sites, remaining in the area for three
weeks. Other associated hospitals also responded to a request

30

Secom Co., Ltd.
Annual Report 2011

from the All Japan Hospital
Association by dispatching
emergency medical teams
to affected areas in Miyagi
Prefecture.
With the aim of ensuring
a swift, accurate grasp of the
Health care services at
extent of the damage on theearthquake evacuation centerground, as well as to assist relief
efforts, subsidiary Pasco used image data from TerraSAR-X
on March 13, along with the data generated through analysis
from various perspectives and using a variety of processes, tocreate maps. These maps were published on Pasco’s website
and distributed to related organizations and government
agencies.
We will continue to draw on the capabilities of SECOM tocontribute to recovery efforts in the months and years ahead.