Financial Highlights

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

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

In millions of yen

In thousands of U.S. dollars

SECOM CO., LTD. and Subsidiaries

In millions of yen

In thousands of U.S. dollars

For the years ended/as of March 31Years ended March 31

Year ended March 31

For the years ended/as of March 31Years ended March 31

Year ended March 31

2014

2016

2014

2016

921,146
120,078
73,9791,440,705
753,099$ 8,702,903
1,052,257
744,000
14,879,044
7,657,326

In yenIn U.S. dollars

822,228
120,018
126,677
69,876
1,328,226
830,369$ 7,796,708
1,137,894
1,193,150
681,761
13,876,566
8,346,407

In yenIn U.S. dollars

338.94105.003,450.36$ 3.41
1.15
35.08

320.14105.003,345.06$ 3.12
1.15
33.79

2016

Net sales and operating revenue
Operating income
Net income attributable to SECOM CO., LTD.
Total assets
Total SECOM CO., LTD. shareholders’ equity¥ 983,428
118,905
84,072
1,681,332
865,278

Per share of common stock:
Net income attributable to SECOM CO., LTD.
Cash dividends
SECOM CO., LTD. shareholders’ equity¥ 385.19
130.003,964.40

2015¥

945,238
122,007
80,184
1,525,863
825,969¥

367.37175.003,784.27¥¥Notes: 1. Yen amounts have been translated into U.S. dollars, solely for the convenience of the reader, at the approximate rate of ¥113=US$1, the rate
prevailing on the Tokyo Foreign Exchange Market on March 31, 2016.
2. Net income attributable to SECOM CO., LTD. per share of common stock is based on the average number of shares outstanding during each period,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 heldon June 25, 2014, shareholders approved a proposal to pay an annual dividend of ¥115.00 per share for fiscal year 2014. Subsequently at the Boardof Directors’ meeting held on November 10, 2014, directors approved a proposal to pay an interim dividend of ¥60.00 per share for the first half ofthe year ended March 31, 2015. Because the interim dividend, the record date for which is September 30, was newly adopted in the year ended
March 31, 2015, the actual amount of dividends paid to shareholders for the year ended March 31, 2015, is the aggregate of the two. The actual
amount of dividends paid to shareholders for the year ended March 31, 2016, is the aggregate of a year-end dividend of ¥65.00 approved at thegeneral shareholders’ meeting on held June 25, 2015, and an interim dividend of ¥65.00 approved at the Board of Directors’ meeting held on
November 9, 2015. At the general shareholders’ meeting held on June 24, 2016, approval was granted for a proposal to pay a year-end dividendof ¥70.00 for the year ended March 31, 2016. (For further information, please see Note 18 of the accompanying Notes to Consolidated FinancialStatements.)

Net income attributable toSECOM CO., LTD. (U.S. GAAP)

2016

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
Net assets

881,028
128,582
134,826
77,0391,568,052
943,144¥352.97130.003,817.82

2015¥

840,722
123,615
136,688
75,392
1,410,715
907,341¥345.42175.003,667.33¥¥

Note: Cash dividends per share of common stock are based on dividends approved and paid in each fiscal year. At the general shareholders’ meeting held onJune 25, 2014, shareholders approved a proposal to pay an annual dividend of ¥115.00 per share for fiscal year 2014. Subsequently at the Board ofDirectors’ meeting held on November 10, 2014, directors approved a proposal to pay an interim dividend of ¥60.00 per share for the first half of theyear ended March 31, 2015. Because the interim dividend, the record date for which is September 30, was newly adopted in the year ended March 31,
2015, the actual amount of dividends paid to shareholders for the year ended March 31, 2015, is the aggregate of the two. The actual amount ofdividends paid to shareholders for the year ended March 31, 2016, is the aggregate of a year-end dividend of ¥65.00 approved at the general shareholders’ meeting held on June 25, 2015, and an interim dividend of ¥65.00 approved at the Board of Directors’ meeting held on November 9, 2015.
At the general shareholders’ meeting held on June 24, 2016, approval was granted for a proposal to pay a year-end dividend of ¥70.00 for the yearended March 31, 2016.

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

(In billions of yen)

100

100
80.2

80

70.6

84.1

74.0

80

62.7

77.0

2015

2016

63.7

60.8

60

75.4
69.9

60
41.2

40

40

20

200
2011

2012

2013

2014

2015

2016

35.50
2011

2012

2013

2014

Note: In the fiscal year ended March 31, 2016, net income attributable to SECOM CO., LTD., rose ¥3.9 billion, to ¥84.1 billion. Contributing factors included
increases in operating income in the security systems segment—underpinned by an upsurge in revenue from on-line security systems—the medicalservices segment and the fire protection services segment, as well as reduced income taxes, which reflected a decline in the statutory tax rate.
In the year ended March 31, 2015, net income attributable to SECOM CO., LTD., advanced ¥6.2 billion, to ¥80.2 billion. This result was attributable toan increase in operating income in the insurance services segment, which reflected a decline in losses due to damage caused by natural disasters, as wellas to an increase in operating income in the security services segment, owing mainly to higher segment net sales and operating revenue. Another contributing factor was a decrease in income taxes, a consequence of tax reform in Japan, which lowered the statutory tax rate.
In the year ended March 31, 2014, net income attributable to SECOM CO., LTD., rose ¥3.4 billion, to ¥74.0 billion. Factors behind this result include anincrease in operating income in the fire protection services segment, owing to robust segment net sales and operating revenue and the reduction of costof sales; a full year of contributions from information and communication related services segment subsidiary At Tokyo Corporation, consolidated in theprevious period; and an increase in operating income in the security services segment, attributable to higher segment net sales and operating revenue.

2

SECOM Annual Report 2016

SECOM Annual Report 20163