REVIEW OF OPERATIONS

Percentage of Revenue and Other Income*Security Services

Medical Services

Insurance Services

Information and Communication
Related and Other Services

68.4%

3.9%

6.2%

21.0%

*Excluding intersegment transactions

CONTENTSSECURITY SERVICES ......................................................17
MEDICAL SERVICES .......................................................18
INSURANCE SERVICES ...................................................18
INFORMATION AND COMMUNICATION RELATEDAND OTHER SERVICES..................................................19
OVERSEAS OPERATIONS ...............................................20

16SECOM—Social System Industry

Commercial and Home Security Service Subscribersby Category (At March 31, 2004)
the relevant information is relayed to the control center,
where the staff dispatch emergency response personnel, whotake the appropriate measures, and notify the police or fireHomeC
Commerciall

department as required.
During the period under review, we continued to market
SECOM AX, a centralized system that employs advanced
image monitoring, to commercial users. We heightened thecompetitive advantages of the versatile SECOM DX centralized security system by adding DX Monitor, which incorporates a function that enables, through the image displayscreen on the site, individuals operating the system and security controls to guard against ambush or forced entry. For
condominiums, we launched sales of SECOM MS-3, which
can be used for existing and new buildings of all sizes.
We continued to offer SECOM Home Security systems
to the residential market. For subscribers to these systems,
we monitor homes for intruders, fires, gas leaks, emergency
calls and medical alerts from our control centers, dispatch
emergency response personnel and notify the police, fire
department or gas company as required. Subscriptions
increased steadily during the period.

■ Security Services

Our large-scale proprietary systems are self-contained,
enabling monitoring to be performed at the subscribers’Electronic Security Services

premises, rather than remotely, through the combination of

For the year ended March 31, 2004, revenue from electronic

on-site patrols and electronic security and equipment man-security services, comprising commercial and home securityagement systems. The SECOM TOTAX ZETA system com-and large-scale proprietary systems, grew 2.7%, to ¥265.3 bil-bines our security expertise in large-scale applications withlion, and accounted for 49.3% of consolidated revenue andthe latest network technologies to protect major industrial

other income, compared with 49.6% in the previous period.

and commercial facilities.

To provide quality security services, the SECOM Grouphas established an integrated process that enables it to main-

Other Security Services

tain control of every aspect of its services, from the research

For security situations that require human judgment andand development of centralized systems and equipment toflexible responses, we provide static guard services staffedmanufacturing, sales and marketing, installation, 24-hourby highly trained professionals. We also offer armored car

monitoring, emergency dispatches, and maintenance andservices to transport cash and other valuables. Together,repairs. Centralized systems use SECOM sensors installed

these services generated revenue of ¥56.2 billion, 5.6%

at customers’ premises to detect events, such as intrusions,higher than the prior period, and accounted for 10.5%

fires and equipment malfunctions. The sensors are linkedof consolidated revenue and other income, up slightly

to SECOM control centers via telecommunications circuits

from 10.2%.

to facilitate remote monitoring. When an event is detected,
17

REVIEW OF OPERATIONS

Merchandise and Otherinstitutions. Our home medical care services include home

We offer a variety of security products, including closed-nursing, personal care and pharmaceutical dispensing andcircuit television (CCTV) monitoring systems, access-control

delivery, while institutional services feature remote image

systems, fire detection and extinguishing systems, and inter-diagnosis support and medical information systems.

nal and external monitoring systems, which can be usedHome medical care services performed strongly, andalone or connected to on-line security systems, as well as

we expanded our network of visiting nurse stations to 32

COCO-SECOM mobile security services. For the period,nationwide. We also continued to market the Hospinet

these products and services yielded revenue of ¥46.1 billion,

remote image diagnosis support service to medical institu-

an increase of 4.5%, and provided 8.6% of consolidated

tions. This service relays images from advanced imaging

revenue and other income, compared with 8.5% in theequipment, such as magnetic resonance imaging (MRI) andprevious period.

computerized tomography (CT) scanners, to our Hospinet

In the CCTV area, the D-CCTV fully digital surveillance

center for examination by our diagnostic experts, who thencamera system again enjoyed steady sales, owing to its clar-

provide consultation to the primary physician. We also

ity and ability to display or record video images without

stepped up sales efforts for the SECOM Ubiquitous EMR

deterioration. We released a stream of new products forsystem, which allows hospitals and clinics to effectively andthe home security market to thwart increasingly bold andsecurely manage large volumes of medical report data.

resourceful criminal behavior. This included SECOM

During the period, we introduced SECOM Medical Club,

Anshin Glass, a high-impact window glass with built-in sen-a membership-based service primarily aimed at SECOM

sors, and SECURIFACE, an intercom system that employs

Home Security subscribers, effectively combining security

an innovative face detection function to alert people toand medical services in an innovative package. In addition,

exercise diligence at the door.

we began sales of Medical Risk Management System toWe strengthened the line-up of COCO-SECOM mobile
security services in response to consumer demand. Duringassist institutional users in analyzing and minimizing therisk of medical accidents.

the period, we launched COCO-SECOM with Emergency
Call, a new package with an added feature that can confirm
the safety of a person carrying a COCO-SECOM transmitter,■ Insurance Servicesand we introduced services for pets and motorized bicycles.
Revenue from insurance services increased 14.5%, to ¥33.4
billion, and provided 6.2% of consolidated revenue and■ Medical Services

other income, compared with 5.6% in the preceding period.

Revenue from medical services amounted to ¥21.2 billion,

insurance policies that draw on synergies with othera 6.4% rise, and represented 3.9% of consolidated revenue

SECOM Group businesses. During the term, we continued

and other income, up from 3.8% in the previous period.

to aggressively market the attractively priced Security

Secom General Insurance offers specialized non-life

In the period under review, this segment continued

Discount Fire Policy to commercial subscribers to on-line

to offer home medical care services, institutional services

security systems, as well as the residential version, SECOM

and medical equipment for sale, as well as operate residen-Anshin My Home, to home security subscribers. Both poli-tial facilities for seniors and lease real estate to medicalcies offer reduced premiums to security system subscribers,

18

SECOM—Social System Industry

recognizing these systems as risk-lowering factors. New

GIS Services

SECOM Anshin My Car is a comprehensive automobile

Pasco Corporation, Japan’s leader in GIS and aerial mapping

insurance policy that offers on-site support services of ourservices, continued to cultivate new markets by using its

emergency response personnel in the event of an automobile

leading-edge sensor technologies and GIS expertise toaccident and lower premiums if the vehicle is equipped with

develop innovative information services. During the period,

COCO-SECOM or other anti-theft devices. We also renewed

we continued to promote sales of PasCAL, a comprehensive

efforts to market MEDCOM, an unrestricted cancer treat-GIS service integrating various data with digital maps thatment policy that covers the entire medical cost of advanced

is marketed to regional public agencies to increase efficiency

treatments not covered by national health insurance as welland share information. We also introduced a series ofas the patient’s portion of the cost of medical care covered

management systems for public facilities.

by the national scheme.

In the commercial area, we concentrated on marketing
the Management-Navigation series of packaged GIS systems.
We also introduced MarketPlanner, an Internet-compatible■ Information and Communication Related andOther Services

area marketing product.

Education Services
Revenue in this segment fell 0.2%, to ¥112.8 billion, andSecom Lines Co., Ltd., a pioneer in computer-aided learning

accounted for 21.0% of consolidated revenue and otherin Japan, develops and provides local area network (LAN)-

income, compared with 21.7% in the prior period.

based learning systems for classrooms, Internet-based learning support software and Web-based educational content

Information Services

primarily for elementary and middle schools.

Secom Information System Co., Ltd., which builds and operates information network systems for the SECOM Group,

Real Estate Sales

also uses its know-how and technological expertise to offer

Secom Home Life Co., Ltd., develops and sells highly innova-

these services to corporate customers. Secom Trust.net Co.,

tive condominiums based on the concept of “safe and secureLtd., offers high-quality protection for e-business and on-line

condominiums” that incorporate value-added elements, suchoperations, including the cyber security essential for IT

as the latest SECOM Group security systems, medical ser-systems and broadband systems; advanced digital authenti-vices, personal care services, information services andcation services crucial to e-commerce and electronic applica-

insurance products. During the term, Secom Home Lifetion systems; and the Secure Data Center, which provides acontinued to develop and market quality condominiums

secure network environment and outsourcing of the opera-that emphasize security and peace of mind.

tion and maintenance of servers. During the term, theSecure Data Center secured a major contract to maintain

Real Estate Leasing

and operate the extranet and servers of a major U.K. phar-Arai & Co., Ltd., continued to build on the expertise inmaceutical company’s Japanese subsidiary. We also launchedproperty management it has accumulated in the real estate

sales of a noncontact IC card-based security system that com-leasing business. In the period, the company focused onbines physical and cyber security to control building, floor

expanding its office leasing business.

and computer access using a single access card for eachauthorized person.

19

REVIEW OF OPERATIONS■ Overseas Operations
Security is a universal requirement for people and society.

of this strategy has let SECOM security services transcendWith this concept in mind, in 1978 SECOM launched

cultural differences to gain favor with subscribers world-

operations in Taiwan. Soon after, we branched out into thewide. We hope to make SECOM a brand trusted globally as

Republic of Korea and the United States. We then secured

we work to contribute to the security and peace of mind ofaccess to the markets of Europe and Oceania by setting up

people everywhere.

operations in the United Kingdom and Australia, andextended our presence in Asia by expanding into Thailand,
Malaysia, Singapore, Indonesia and the People’s Republic ofChina, bringing the total number of countries and territories
in which we operate, outside Japan, to 10.
The distinguishing characteristic of SECOM security
operations around the world is that we customize our systems and services to the needs of the particular country or
region while drawing on know-how gained in Japan. Pursuit

20