SECOM Group Road Map 2027

Review of the SECOM Group Road Map 2022
From the fiscal year ended March 31, 2019 through the fiscal
year ended March 31, 2023, we promoted initiatives in linewith the SECOM Group Road Map 2022 aimed at ensuring
realization of the SECOM Group’s Vision for 2030. Having
positioned responding to technological advances and a
declining labor force as priority challenges, we promoted
crucial investments expected to yield appropriate returns
over the medium to long term—including concentrated
investments in people and systems—and worked actively tokeep abreast of rising needs related to these issues, which
we saw as likely to yield major business opportunities. Key
achievements over the road map’s five years enabled us toestablish a solid foundation for growth going forward.
Of particular note, we launched the new System Security
AZ series of platform-like security systems for commercial
facilities that provide all-in-one protection against crimes
and fires, as well as a variety of other functions. We also
worked to reinforce our human resources technology
services, which are highly compatible with commercial
security services, and reinforced collaborative capabilities.
As options for SECOM Home Security subscribers, we beganproviding the cloud-based SECOM Monitoring Service for
Seniors, which uses a dedicated app. In addition, we took
steps to strengthen SECOM Home Security’s connectivity
with third-party devices, including apps for Apple Watch andiPhone that deliver enhanced convenience.

Formulation of the SECOM Group Road Map 2027
Overseas, in 2019 we began offering security services in
Turkey and established the ASEAN Innovation Center inThailand, where we are striving to establish a full-fledged
business firmly rooted in the local community by, among
others, devising systems that respond to market needs, andkicking off a local advertising and publicity campaign.
Investments in our people, an important focus, included
enhancing returns to employees, including by raising basesalaries, and creating work environments conducive to job
satisfaction with the objective of improving employee
engagement.
We also sought to optimize our business portfolio. In
November 2021, we transformed listed subsidiary Secom
Joshinetsu into a wholly owned subsidiary. To expand thescale of our security services business, in July 2022 security
services company Senon joined the SECOM Group.
Initiatives under the SECOM Group Road Map 2022—
notably the introduction of new services, centered on
security and monitoring services in Japan, security services
overseas, and BPO and ICT services, as well as a variety ofmeasures implemented in-house—thus accelerated thecreation of a foundation for future growth.

In May 2023, we formulated the SECOM Group Road Map 2027 with the intention of
sharing our direction over the next five years with our stakeholders. Together withextraordinary socioenvironmental changes, recent years have brought remarkabletechnological advances. At the same time, in Japan a declining labor force, the aging ofsociety and worsening perceptions of public safety have taken on greater urgency, whileissues such as increasingly frequent and severe natural disasters, together withadvancing global inflation, are becoming more and more acute.
We are committed to accurately identifying needs arising from these circumstances,and will continue to promote open innovation, collaborating with a broad range of partners
to offer innovative services that deliver safety and peace of mind to customers whatever
the situation. At the same time, we will work to address social imperatives, positioning us
to achieve sustainable growth together with society.

SECOM Group Road Map 2027: Core strategies
Guided by the SECOM Group Road Map 2027, we will capitalize on our advanced
technologies and extensive know-how to further promote five core strategies aimed
at ensuring our ability to deliver safety and peace of mind in all situations.

Road Map 2027— Capitalize on advanced technologies and extensive know-how to deliver safety and peaceof mind in all situations
Core strategies
Expandmonitoring andsecurity services

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Key initiatives
Provide innovative security-focused services and solutions• Realize seamless protection by linking diverse information in the Mimamori (“Monitoring”) Cloud• Create a business infrastructure that combines robust security and an open cloudStrengthen
overseas
operations

Realize further growth in promising overseas markets• Add depth to existing security services and medical services businesses• Cultivate new business portfolios in new overseas markets and new business areas

Reinforce
BPO and
ICT services

Create an infrastructure that supports customers’ operations• Enhance service infrastructure by establishing new data centers and expanding network• Expand solutions to assist customers in ensuring smooth operations and provide effective
BPO services

Improveproductivity

Enhance productivity by maximizing service value and improving operational efficiency• Implement initiatives that facilitate the provision of a steady stream of new services and maximize
service value• Leverage the latest technologies to help employees reach their full potential and improve
operational efficiency

Rewardstakeholders

Ensure SECOM remains the company of choice for all stakeholders• Securing and fostering human resources by improving working environment including measuresdesigned to bolster employee engagement• Press ahead with sustainability initiatives to earn the trust of all stakeholders

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SECOM Group Road Map 2027

1

Create SaaS models for the provision of merchandise
We will also transform the provision of merchandise for on-line security systems into a sophisticated yet simple and safe
service-based business suited to the cloud era.

Expand monitoring and security services

Develop more advanced monitoring services
We will leverage AI, 5G, cloud and other technologies toprovide new services and solutions, particularly in the areaof security. For residential subscribers, we will combine
home security and the Mimamori Cloud to facilitate theseamless monitoring of users, as well as develop services
for their families and nursing care providers, thereby
providing peace of mind in all aspects of daily life.
Security in the event of an emergency

Everyday monitoring

Healthcare data
Environmental data
Record of activities,
etc.

Mimamori CloudControl system

Dailyrhythms

Emergency
Security guards

Detection of
an irregularity

Key initiatives to date

Began providing the cloud-based SECOM Monitoring Service for
Seniors, which uses a dedicated smartphone app (June 2021)
See page 35
Launched SECOM Cantabile, an app for Apple Watch(February 2022) See page 35
Introduced anone, a communication and conversation service forseniors that uses a robot (April 2023) See page 35
Released YORiSOS, an app for Apple Watch that assists witheveryday health management and can also be linked to the Apple
Watch’s fall detection feature (April 2023) See page 35

Sensing

Vital sign data
Healthcare-related
adviceMonitoring
Interactive
Safetyverbalconfirmation
communication

Healthcare

Communication

Seniors

Services that enable unobtrusive, stress-free monitoring• Highly accurate, discreet sensing, linked to various devices used on a daily basis

Integrate robust security with and open cloud
For commercial subscribers, we will expand linkable open
cloud services to create a service infrastructure centeredon System Security AZ that supports subscribers’
business activities.

Security guards

Partners

Data
provisionAccess Control as a Service (ACaaS)

IoT as a Service (IoTaaS)

Provision of cloud-based services for
managing surveillance camera images anddetection events

Centralized management of accessauthorization, as well as of entry/exit record
and image storage, in the cloud

Provision of a communications environment
and user interface as one set to connect
IoT terminals installed in various equipment
and facilities

AI-based event
detection

Visitors

CongestionApp

API linkage

Family members

Nursing care,healthcare service
providers, etc.

Entry and exit
records
SurveillancecamerasImages of people entering and exiting

Air conditioning
equipment

Links to family members
and other key individuals

Key initiatives to date

Provision of interactive services that make use ofPCs, smartphones and other devices

Promote DX in the security services market
In addition, we will promote DX with the objective ofextending SECOM systems and know-how to partners whoshare our philosophy, driving improvements in the quality ofsafety and peace of mind for communities and society as
a whole.

Static guards

Open cloud services

Event detection

Key initiatives to dateReleased the cocobo security robot and the Virtual Keibi System(January 2022)
Senon joined the SECOM Group (July 2022)

Facility management

Assisting partners that share our philosophy todrive digital transformation

Development of apps
based on security system information• Remote management tools that reduce staffing andlabor requirements• Portal services that centralize status management for
multiple sites

Transport of valuables

Security DX Supported by
SECOM

Provided via an open framework

Linkage to third-party services

Security cameras and access control

Accessauthorization

Collaboration
with partners

Began providing System Security AZ-Air, a system optimized forsmall and medium-sized retail facilities and offices (July 2022)
See page 34
Launched AZ-Access, an access control system tailored to theneeds of subscribers with large-scale facilities (May 2023)
See page 34
Released dot-i, a web-based service for retail facility managementthat uses camera images to improve operational efficiency(July 2023) See page 34

Robust security services
Control system

New services

Video Surveillance as a Service (VSaaS)SECOM security systems that employ the latest technologies

through collaboration with partners• Access control services, ID management services• HR technology services (employee attendance
management, etc.)

Infrastructure centered on System Security AZ• Integration and centralization of on-line monitoring, facility access control, image recording and other functions• Continuous evolution through linkage with multiple devices and the application of AI, among others

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Personal mobility
devices

Wearable devices

Information
processing

Robotics

Video management
systems

Data centers

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SECOM Group Road Map 2027

Strengthen overseas operations

4
Key initiatives to date

Expanded provision of interactive security system that uses asmartphone app in overseas markets See page 37
Kicked off advertising and publicity campaign in Thailand
See page 37
Made investments in cloud-based physical security services
providers Eagle Eye Networks and Brivo, which extend SaaS
solutions primarily in North America (May 2023) See page 37

Add depth to existing businesses• Expand security services that employ
the latest technologies• Establish a globally recognized brand• Broaden operating foundation in Asia,
Oceania and elsewhere• Boost hospital operations in India,
including by establishing new facilities

Expand into new businesses• Leverage new technologies andsolutions to enhance services andsystems• Seek opportunities for collaboration
with other companies and M&As

3

Existing
overseas marketsNewoverseas markets

Existing
businesses

Existing
businesses

Existing
overseas marketsNewoverseas markets

NewbusinessesNewbusinesses

Existing overseas markets

Existing businesses

With the aim of realizing further growth in promising overseas
markets, we will add depth to existing security services andmedical services businesses while also cultivating businessportfolios into new overseas markets and new business areas.
In addition to advancing recognition of the SECOM brandworldwide, we will strive to boost revenue generated overseas
to 10% of the consolidated total by strengthening operations
through both organic growth and the active promotion of M&As.

New businesses

2

Expand into new markets• Enter markets in countries andterritories with high growth potential• Seek opportunities for collaboration
with other companies and M&As

Create new growth models• Implement M&As to establish new
foundations for growth• Explore new possibilities, focusing on
start-ups in the areas of securityrelated SaaS and health technology

New overseas markets

Reinforce BPO and ICT services

In addition to enhancing our service infrastructure byestablishing new data centers and expanding our network, wewill enhance existing and develop new SaaS solutions thatassist customers in ensuring smooth operations and provide
effective BPO services that help improve operational efficiency.
We will also build business infrastructures centered on
information security technologies and around-the-clock
services that provide digital support for customers’ operations.

Key initiatives to date

Acquired shares in ARTERIA Networks
Made plans to build two new data centers in the Greater Tokyo
Area (scheduled to open in 2024–2025) See page 45

We aim to improve productivity by leveraging technologies todevelop a steady stream of high-yield new services, thereby
maximizing service value, and by helping employees reach
their full potential and enhancing operational efficiency.

5

Key initiatives to date

Overhauled work duties
Revamped corporate structure and business processes
Updated in-house IT system

Reward stakeholders

We will continue investing in efforts to secure and foster
human resources that support the SECOM Group’s
provision of services, as well work to create workplaceenvironments conducive to greater diversity, enhanced
well-being, and improved and expanded capabilities. Having
worked to fortify our sustainability framework, we will
now focus on accelerating the integration of management
and sustainability strategies to ensure our ability to
evolve as a company that consistently earns the trust of
all stakeholders.

Key initiatives to date

Formulated target for achieving carbon neutrality by 2045
(May 2021), obtained certification of this target from the SBTi andjoined RE100 (July 2021) See pages 63–64
Formulated the SECOM Group Basic Sustainability Policy(December 2021) See page 28
Established KGIs and KPIs based on materiality analysis(October 2022) See pages 29–31
Created the SECOM Group Human Rights Policy (October 2022)

Financial strategies and quantitative targets
We have set three financial strategies: Enhance shareholder
returns while maintaining a sound financial position, toachieve our dividend payout ratio target of 45%; invest in
growth while remaining aware of the cost of capital; andconduct share buybacks in a timely manner to achieve an
ROE of 10%.

To further expedite the realization of services that will
ensure achievement of the goals of the SECOM Group’s
Vision for 2030, we will continue to share information on theinitiatives outlined in this road map with investors, as well as
to enhance opportunities for constructive dialog, as we workto achieve the quantitative targets we have set for the fiscal
year ending March 31, 2028, and to bolster corporate value.

Targets for the Fiscal Year Ending March 31, 2028 (Japanese GAAP) (Reference)

Results in the fiscal year
ended March 31, 2023

SaaS solutions that support

BPO services that contribute toData centers and networks

smooth operations• Expansion and development of SaaS-based
services for businesses including HR and
BCP that support operations and business
continuity• Aim: Become a platformer that serves as a
hub for HR technology services for smalland medium-sized commercial customers

the improvement of operating efficiency• Expansion and development of BPO services(contact center and back office support) that
respond flexibly to changes in the operating
environment, including evolving consumer
values and needs, a decline in the labor
force and the diversification of work styles

Targets for the fiscal year
ending March 31, 2028

¥1,101.3 billion

At least ¥1,250.0 billion¥136.7 billion¥160.0–¥180.0 billion

Dividend payout ratio

41.6%

Around 45%

ROE

8.4%

10%

Consolidated revenue

Service provision framework:• Construction of new data centers in Tokyo
and Osaka, and expansion of edge data
center business• Further expansion of interconnection
services that improve the experience ofcloud-based service users

Improve productivity

Consolidated operating profit

Information security technologies
and around-the-clock services
that protect customers’ business foundation and services
in a manner that is safe and ensures peace of mind

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