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

Net sales and operating revenue
Operating income
Net income attributable to SECOM CO., LTD.
Total assets
Total SECOM CO., LTD. shareholders’ equity

2017

2016

2015

2017

¥1,031,261
130,178
91,387
1,763,278
929,242¥ 983,428
118,905
84,072
1,681,332
865,278¥ 945,238
122,007
80,184
1,525,863
825,969$ 9,207,688
1,162,304
815,955
15,743,554
8,296,803

In yenIn U.S. dollars¥ 367.37
175.003,784.27$ 3.741.25
38.01

Per share of common stock:
Net income attributable to SECOM CO., LTD.
Cash dividends
SECOM CO., LTD. shareholders’ equity¥ 418.71
140.004,257.50¥ 385.19
130.003,964.40

Notes: 1. Yen amounts have been translated into U.S. dollars, solely for the convenience of the reader, at the approximate rate of ¥112=US$1, the rate
prevailing on the Tokyo Foreign Exchange Market on March 31, 2017.
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, was the aggregate of the two. The actual
amount of dividends paid to shareholders for the year ended March 31, 2016, was the aggregate of a year-end dividend of ¥65.00 approved at thegeneral shareholders’ meeting held on June 25, 2015, and an interim dividend of ¥65.00 approved at the Board of Directors’ meeting held onNovember 9, 2015. The actual amount of dividends paid to shareholders for the fiscal year ended March 31, 2017, is the aggregate of a year-end
dividend of ¥70.00 approved at the general shareholders’ meeting held on June 24, 2016, and an interim dividend of ¥70.00 approved at the Boardof Directors’ meeting held on November 9, 2016. At the general shareholders’ meeting held on June 27, 2017, approval was granted for a proposal
to pay a year-end dividend of ¥75.00 for the year ended March 31, 2017. (For further information, please see Note 18 of the Notes to Consolidated
Financial Statements.)

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

2017

2016

2015

2017

¥ 928,098
131,050
147,033
84,1701,650,176
1,013,253¥ 881,028
128,582
134,826
77,0391,568,052
943,144¥ 840,722
123,615
136,688
75,392
1,410,715
907,341$ 8,286,589
1,170,089
1,312,795
751,518
14,733,714
9,046,902

In yenIn U.S. dollars¥ 345.42
175.003,667.33$ 3.441.25
36.49¥ 385.64
140.004,086.87¥ 352.97
130.003,817.82

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 on
June 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, was the aggregate of the two. The actual amount ofdividends paid to shareholders for the year ended March 31, 2016, was 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.
The actual amount of dividends paid to shareholders for the fiscal year ended March 31, 2017, is the aggregate of a year-end dividend of ¥70.00
approved at the general shareholders’ meeting held on June 24, 2016, and an interim dividend of ¥70.00 approved at the Board of Directors’ meeting
held on November 9, 2016. At the general shareholders’ meeting held on June 27, 2017, approval was granted for a proposal to pay a year-end
dividend of ¥75.00 for the year ended March 31, 2017.

Net income attributable toSECOM CO., LTD. (U.S. GAAP)Net income attributable toowners of the parent (Japanese GAAP)(In billions of yen)

(In billions of yen)

100
80

70.6

74.0

80.2

84.1

91.4

80
63.7

41.2

4077.0

2015

2016

84.2

35.5

20

200

69.9

75.4

60

60
40

100

2012

2013

2014

2015

2016

2017

02012

2013

2014

2017

Note: In the year ended March 31, 2017, net income attributable to SECOM CO., LTD., advanced ¥7.3 billion, to ¥91.4 billion. Factors behind this result
included an increase in operating income, bolstered by higher sales of on-line security systems and a decrease in impairment loss on long-lived assets,
and a gain on private equity investments.
In the 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 services segment—underpinned by higher revenue from on-line security systems—the medical services
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 revenue from on-line security systems. Another contributing
factor was a decrease in income taxes, a consequence of tax reform in Japan, which lowered the statutory tax rate.

2SECOM Annual Report 2017

SECOM Annual Report 20173