TO OUR SHAREHOLDERS

security needs, step up competitiveness in all core busiespite signs of improvement in the stock
nesses, and combine and integrate services and busimarket and capital investment, the outlook
nesses to create innovative, comprehensive newfor Japan’s economy continues to invite cauofferings.
tion. Lackluster personal consumption and an
In the security services field, we responded to auncertain global geopolitical situation contributed furrash of automated teller machine
ther to a persistently harsh economic(ATM) robberies involving backhoes orenvironment.
other construction equipment by
Against this backdrop, SECOM
developing several key products
has continued to implement meaaimed at both making ATMs moresures aimed at taking the Social
secure and reducing thefts of heavy
System Industry to the next level.
machinery used in ATM robberies. We
These measures focus on enhancing
commenced sales of ATM Building
existing services, reinforcing marketSecurity System, which detects theing and heightening efficiency, as wellapproach of construction equipment
as on offering new products and sertoward an ATM site and warns avices that respond to society’s changwould-be robber to desist before aing needs and realizing Group
Makoto Iida
crime is committed, as well as ATMsynergies to better serve customers.
FounderSurround Protection Unit, which facilIn the fiscal year ended March 31,
itates more secure installation of ATMs, making them
2003, these efforts contributed to a 5.5% increase in
extremely difficult to dislodge. At the same time, weconsolidated revenue and other income, to ¥520.7 bilbegan marketing our COCO-SECOM mobile security
lion. Owing to the absence in the period under reviewservices to construction and other firms to thwart theof a net gain on sale of securities in the previous period,
misappropriation of equipment.
net income declined 11.2%, to ¥30.3 billion. As a conIn the area of home security services, we alsosequence, basic net income per share was ¥132.87,introduced
a number of innovative products that comdown from ¥146.19 in the previous fiscal year. Cashplement our home security systems to meet demand
dividends per share of ¥40.00 were approved at theprompted by an increase in residential break-ins involvgeneral shareholders’ meeting held on June 27, 2003.
ing smashing windows or destroying doors. In addition
to offering such physical security products as SECOM
Promoting Integrated Services and Businesses
Anshin Glass high-impact window glass and Strong
Since 1989, SECOM has worked to create the infraDoor, a reinforced door, we developed SECOM Home
structure for the Social System Industry. With theCamera System, an external monitoring and stillcompletion of this infrastructure in sight, in 2002—
image surveillance camera system. In response toour 40th anniversary—we announced the next level ofemerging demand for personal security outside thethe Social System Industry’s development, the focus
home for children and the elderly, we also augmentedof which is to provide a full range of services that
COCO-SECOM, a suite of services for locating mobile
respond to the needs of our customers.
people and objects, with COCO-SECOM withDuring the period under review, we sought toEmergency Call. In addition to basic track-and-locateenhance our responsiveness to emerging safety andD2

functions, this service features a portable personal
analyzing risks associated with providing medical care.
alarm that enables users to have an alert relayed to a
We also continue to enhance SECOM Healthcare Net,
predetermined telephone number in the event of ana network service that we offer exclusively to healthemergency.
care institutions. In autumn 2003, we plan to introduce
In addition to developing new commercial andSECOM Medical Club, a membership-based service prihome security products and services,marily for our home security subscribers
we reinforced our Total Security
that includes preventive treatment andPlanning (TSP) services, whereby weemergency medical services, as well as
combine on-line security services,
specialist and hospital referrals.
safety-related products and services,
We continued to step up marketcasualty insurance, and inspection anding of our lineup of original insurance
maintenance services into tailoredservices, which combine insurance
packages. Such packages reduce overwith security, medical and other serall costs to customers and facilitate
vices. Core offerings here include New
integrated management.
SECOM Anshin My Car, which featureson-site dispatch services and traditional
In the medical services field, we
automobile insurance; Security Discountcontinued to capitalize on our knowToshitaka Sugimachi
Chairman
Fire Policy, a policy for commercial cenhow in the area of home medical care
tralized security system subscribers thatby developing new products and seroffers reduced premiums; SECOM
vices. Building on our more than 10Anshin My Home, a comprehensive fire
years of expertise in the provision ofinsurance policy targeted mainly at resihome nursing and pharmaceutical disdential subscribers; and MEDCOM, anpensing and home delivery services, weunrestricted cancer treatment policy
began offering start-up consulting andthat provides access to cutting-edge
support services for physicians setting
treatments and medical consultation.
up home medical care clinics. ThroughWe revamped our information sersuch efforts, we are striving to makevices business by integrating our cyberhome medical care an available andsecurity and network services busiviable option for patients nationwide.
nesses. Capitalizing on our accumuWe have also developed a variety
lated expertise in physical and cyberof effective, low-cost, reliable systems
Shohei Kimurasecurity, we launched SECOM Data
that combine medical services withPresident andRepresentative Director
Safe, a repository that offers highinformation technology (IT). Thesesecurity data storage, protecting servers
include SECOM Ubiquitous Electronicfrom physical risks and data from cyber risks. We also
Medical Report (EMR), an innovative electronic meddeveloped a noncontact integrated circuit (IC) cardical report system that gives authorized personnel
based security system for corporate premises thataccess to patient information over the Internet, andcombines office security, including building and floorMedical Risk Management System, which, as its
access control, with computer security, digitalname implies, is a scientific theory-based system for3

TO OUR SHAREHOLDERS

enhancing the SECOM brand image—one of our mostprecious assets—and strengthening our corporate
culture by developing products and services thattranscend conventional boundaries and truly benefit
society. In so doing, we work to contribute to the creation of a more secure society, as well as to ensurethat SECOM is the company people rely on to meet awide range of essential needs.
To these ends, we will continue to maximize ourposition as the pioneer of Japan’s security services
industry to redefine the boundaries of our businessand strengthen our emphasis on the needs of customers. As always, our business development efforts
will focus not only on the provision of independent
products and services, but on maximizing the synergies of SECOM Group companies to facilitate theextension of comprehensive, integrated, affordable
services that make life more secure, convenient andcomfortable. We will also work to cultivate new
businesses that will ensure SECOM’s ongoing value
to society.
We are acutely aware of the importance ofresponsive, efficient management in today’s rapidlychanging environment. We also recognize the needfor management that is capable of identifying and seizing new opportunities and achieving sustained growthin shareholder value. We will strive to continue
responding to the expectations of shareholders on
both counts, and we look forward to your continued
support of our efforts.

certificate authentication and other cyber securityservices.
In the GIS services business, subsidiary Pasco
Corporation focused on developing new technologies
and offering new services that respond to customer
needs. In line with the Japanese government’s “e-Japan
Priority Policy Program”—formulated to realize theofficial goal of making Japan one of the world’s mostadvanced IT nations by 2005—Pasco expanded its
marketing of GIS services for the public sector. These
include PasCAL, a comprehensive service that assists
local governments with the provision of social services, and Wagamachi Guide, an interactive site thathelps local governments improve services for residents. Pasco also reinforced its lineup for the private
sector, including Management-Navigation Light, anarea marketing tool, and Management-Navigation
CRM, a customer relationship management (CRM)
tool, thereby enhancing its market presence.
In the education services field, subsidiary SecomLines Co., Ltd., expanded its lineup of educational
solutions with Lines E-Library Advance, a virtual education platform designed to support computer-aided
classroom learning.
Making SECOM the Brand of Choice
As a company committed to the provision of security
and peace of mind, SECOM has endeavored to createa brand worthy of its customers’ trust. On behalf ofmanagement and staff, we pledge to continue

August 29, 2003

Makoto Iida
Founder

Toshitaka Sugimachi
Chairman4

Shohei Kimura
President and Representative Director