REVIEW OF OPERATIONSCONTENTSSECURITY SERVICES .........................................................................................

13INFORMATION AND COMMUNICATION RELATED AND OTHER SERVICES .......

14INSURANCE SERVICES ......................................................................................

15

MEDICAL SERVICES .........................................................................................

15

OVERSEAS OPERATIONS ..................................................................................

16

Subscribers to Security Services by Category
At March 31, 2000

Commerce
17.0%
Manufacturing
15.0%
Banking and financial services 12.3%
Service industries
19.5%
Government agencies
9.4%Others
26.8%

Percentage of Revenue and Other Income
Security
Services

Information and Communication
Related and Other Services

Insurance
Services

MedicalServices

71.8%

17.6%

7.4%

0.3%

12
SECOM CO., LTD. Annual Report 2000

REVIEW OF OPERATIONSSECURITY SERVICESElectronic Security Services
In fiscal 2000, ended March 31, 2000, revenue fromelectronic security services, including commercial, homeand large-scale proprietary security systems, rose 0.7%,
to ¥225.5 billion. This accounted for 54.7% of total
revenue, compared with 56.8% in the previous period.
We expanded our lineup of on-line centralized
security systems, a principal component of this segment,with the introduction of SECOM IX, an interactive online system for commercial enterprises with late-night
operating hours. SECOM IX is especially effective inpreventing robberies and is intended primarily as anemergency warning-activated system comprising CCTV
surveillance cameras and ISDN-based image transmission technology. It immediately transmits video images
and recorded sounds from the subscriber’s premises to
the SECOM Video Monitoring Center when an emergency button is activated or monitoring is requested.
The emergency button may be pressed, for example, by asubscriber company employee when confronted by arobbery or other crime, while requests for monitoring
may be made when, for example, an employee feels
insecure or uneasy. In both cases, the video images andaudio signals are examined by center staff, who
promptly assess the situation and take the appropriatesteps, namely dispatching personnel and notifying thepolice. SECOM IX customers may also subscribe to an
optional video patrol, which involves monitoring of thefacility initiated by the control center.
Fiscal 2000 also saw the launch of SECOM MS-2,
a condominium security management system combining emergency medical alert and safety monitoring
functions. We also introduced SECOM MS-2N, acondominium security management system with significantly reduced rates.

Sales of Merchandise
SECOM merchandise consists primarily of CCTV
surveillance cameras, access control systems, automatic
fire detection and extinguishing systems and intruder
detection systems. Revenue from merchandise sales infiscal 2000 slipped 6.2%, to ¥25.1 billion, and constituted 6.1% of total revenue, down from 6.8% in fiscal
1999.
New services introduced in fiscal 2000 included
the SUPER CCTV System, a surveillance system withbuilt-in security features to sense tampering. A visualand audio alarm is triggered if the camera angle isaltered, the lens is covered, the cables connecting
equipment are severed, or the power supply is cut off.
We also launched a digital video recorder for security
systems, which offers high-resolution recording andreplay functions and prevents deterioration of image
quality that occurs when tapes are replayed repeatedly,
thus eliminating the need to replace tapes and cleanmagnetic heads. Should the video or input signal be

Centralized Security Services
SECOM
ControlCenter

SECOM
Emergency
Depot
Dispatch
Emergency
Response
Personnel

Telephone Circuit
AlertFireDept.

Alert asNecessary

PoliceGas
Company

Other Security Services
Operations in this category center on static guard andarmored car services. During the period under review,
these services generated revenues of ¥45.2 billion,
an increase of 6.5% from fiscal 1999, and accounted
for 11.0 % of total revenue, compared to 10.8% in theprevious period.

Subscribers

13SECOM CO., LTD. Annual Report 2000

REVIEW OF OPERATIONS

Detection Service, which monitors and reports on
unauthorized intrusions 24 hours a day, 365 days a year,and includes rental sensors, regular reports and casualty
insurance, and SECOM Virus Monitoring Service,
which encompasses antivirus protection, pattern filemonitoring, regular reports and casualty insurance.

interrupted, or any irregularity affect the hard disk, awarning appears on the monitor immediately. Linking
this recorder to the SUPER CCTV System facilitates
unmatched reliability.
Another new product brought to market in fiscal2000 was TOMAHAWK-PS, an automated fire extinguishing system for mechanical automobile parking
systems. Unlike conventional fire extinguishing systems, which use carbon dioxide, and are thus potentially harmful to the environment and human health,the TOMAHAWK-PS uses a new gas fire suppressantthat is zero-rated for ozone-depleting substances. The
TOMAHAWK-PS features smoke and heat sensors,
ensuring fires are discovered and extinguished early anderroneous activation is prevented. When activated, it
reacts automatically with a 10-second, intensive spray.
The unit also features a space-saving design, making
the TOMAHAWK-PS a winner in terms of safety,effectiveness and ease of installation.

GIS Services
During the period, Pasco, Japan’s leading purveyor of
mapping and GIS services, joined the SECOM Group.
Pasco’s operations comprise land survey chart preparation; environment analysis; construction consulting,including urban, road and park planning and design;
and information systems, which comprises the development and sale of GIS services based on its specialized
expertise in other areas.
In line with the Social System Industry vision, wewill endeavor to maximize Pasco’s capabilities to offer
GIS and other information services, currently marketedprimarily to public-sector customers, in the privatesector.

INFORMATION AND COMMUNICATION RELATEDAND OTHER SERVICES
Revenue from information and communication related
and other services climbed 31.3% in fiscal 2000, to¥72.7 billion, and constituted 17.6% of total revenue,compared with 14.0% in fiscal 1999.

Education Services
A pioneer in computer-aided learning systems in Japan,
subsidiary Secom Lines continues to offer a variety ofcomputer-aided learning systems. During the period,
Secom Lines continued to focus on elementary andjunior and senior high schools by marketing theInternet Series for Schools, comprising materials
designed to help schools maximize the benefits of theInternet, and the Lines Forest Series of Groupware
designed for use on school computer networks toenable everyone in the class to learn while communicating on-line.

Software and Information and Communication
Related Services
SECOM is well positioned to respond to rising demandfor cyber security services. During the period underreview, we launched digital certificate authorization services, which are provided by subsidiary Secom
Trust.net, and include digital certificate issuing anddigital certification authority outsourcing, the latter ofwhich is conducted on behalf of customers at theSecom Trust.net Certification Authority Center. New
digital certificate issuing services include SECOM
Passport for Web, which issues certificates for Web
sites, and SECOM Passport for Members, which certifies the browsers and e-mail of individual members
and organizations.
We also offer a variety of network monitoring andsecurity services. These include SECOM Intrusion

Real Estate Development
Secom Home Life, which functions as the Group’s realestate development arm, continues to develop condominiums that offer built-in SECOM on-line security
systems as a standard feature. Secom Home Life is also
aiming to incorporate other SECOM Group services,
including home medical care and home nursing, information, education and insurance, to develop and offer
a range of high-value-added condominiums.
14

SECOM CO., LTD. Annual Report 2000

REVIEW OF OPERATIONS

Double, a comprehensive insurance policy that pays
back the principal in full upon maturity. Consumers
continue to respond positively to the additional peaceof mind offered by the guaranteed principal and attractive returns of both policies.

INSURANCE SERVICES
Insurance services generated revenue of ¥30.4 billion, anincrease of 6.4 times from fiscal 1999, when we entered
the non-life insurance business. Revenue in this category
constituted 7.4% of total revenue, up from 1.2%.
Our non-life insurance subsidiary, Secom General
Insurance, is focusing its efforts on the development of
attractive and innovative products, such as Secom My
Car Insurance, an automobile policy offered directly tothe public at lower prices than conventional brokervended policies, and services, such as a discount on its
fire insurance policy for SECOM security systems subscribers. During the period under review, the company
added two products to its lineup: Anshin L Rich, ahigh-return casualty insurance policy, and Anshin New

MEDICAL SERVICES
Revenue from medical services totaled ¥1.3 billion, anincrease of 23.3% from fiscal 1999, and represented
0.3% of total revenue, on a par with the previousperiod.
Subsidiary Secom Home Medical System provides
comprehensive in-home medical care, encompassing
dispensary services and professional private nursing
services, as well as Medidata, an on-line, in-homeHome MedicalServices

Hospinet Service
MedicalCare
Institution

Prescription’s
M etCO inSE sp er
Ho entCImage Diagnosis
Pharmaceutical
DeliveryPharmaceutical Co
ordServicei

SECOM Pharmacy

Contionsu

Prescription

nalti
ng

In-HomeNursing Service
SECOM
Nurse Station

Nurse
ReportPhysicianGuidance

Report(Fax)

ImageTransmission(ISDN)

MedicalExamination
Hospital

Subscribing
Medical Institution
Image Examination
CenterRequest for
Examination

Visiting
Patient

ClinicRequest for
Examination

Ex Me
am diin cal
ation

Request for
Examination

Request forExamination
ClinicHospital

15
SECOM CO., LTD. Annual Report 2000

REVIEW OF OPERATIONSOVERSEAS OPERATIONS
In line with its belief that people everywhere needsafety and peace of mind, SECOM made its first direct
investment overseas by establishing a joint venture withTaiwan Secom Co., Ltd., in 1978. Since then, SECOM
has earned solid praise for its distinctive on-line electronic services in many countries overseas. Today, weserve subscribers in 10 countries and states: the UnitedStates, Taiwan, the Republic of Korea, Thailand,Malaysia, Singapore, Indonesia, the People’s Republicof China, the United Kingdom and Australia. In Asia,our subsidiaries in Taiwan and the Republic of Korea
enjoy a strong presence in their local markets. Bothhave also listed their shares on their respective stock
exchanges. In the United States, the Westec Security
Group, Inc., offers on-line security systems incorporating remote imaging functions.
We will continue to capitalize on our expertise in
the security field to enhance services offered overseas,
as well as strive to expand our presence in countries
with markets for SECOM-style security services.

medical treatment support system that includes therental of testing equipment. During fiscal 2000, Secom
Home Medical System took advantage of regulatorychange permitting the opening of Medical Care
Insurance- and Long-term Care Insurance-approved
visiting nurse stations, to establish several of these stations, thereby enhancing its ability to provide effective
services and counseling under doctor supervision, as
well as around-the-clock accessibility.
We also offer the Hospinet service, a remote
image diagnosis support service. When a subscribing
institution requests diagnosis of an MRI or CT scan,
the image data is sent via ISDN from the examination
center to the SECOM Hospinet Center for analysis.
Diagnosticians at the center then advise the institution.

16
SECOM CO., LTD. Annual Report 2000