SPECIAL FEATURE

Expanding Our Operations to Respondto Increasingly Diverse
Security Needs
Information
Services

Security
Services

Cyber
Security

COCOSECOM

Non-Life
Insurance
Services

MedicalServices

Education
Services

GIS
Services

SECOM is expanding its operations into a broad range of business areas in pursuit of
its Social System Industry vision. For the past several years, our core security operations—the central theme of which is to provide security and peace of mind—havebeen the focus of our development efforts.
To grow our commercial security operations, we have worked to develop new systems and upgrade the functionality and effectiveness of existing systems on an ongoing basis. We have also branched out into cyber security, a natural extension of these
operations, in response to the Internet’s increasingly important role in business.
We have also expanded into the home security market, broadening our emphasis
to include convenience and quality of life. At the same time, we have complemented
antitheft, fire alarm and other security services with health and medical services. Morerecently, we have also launched insurance services, thereby enabling us to offer truly
comprehensive security and peace of mind.
In April 2001, we opened a new chapter in the SECOM story by launching a new
security system that has broadened the definition of the security services industry.
This system, COCO-SECOM, provides protection for people and property, such as
automobiles, on the move.
These are just a few examples of how we are creating new security systems that
anticipate the new and growing risks posed by rapid social change, globalization andthe information revolution. In the following pages, we take a closer look at recent
initiatives aimed at responding to the diverse and evolving needs of customers.

SECOM CO., LTD. Annual Report 2001

5

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Social System Industry

SECOM CO., LTD. Annual Report 2001

A

dvanced Image
Processing Technologies—Raising System
Functionality and EffectivenessIn 1998, we developed and launched SECOM AX, an online centralized security system that employs advanced
image sensors to combat the rise in carefully orchestrated crime at commercial establishments. The system’s introduction has made it possible to capture
images of the crime events and the rooms in which theyoccur as well as rapidly dispatch SECOM emergency
response personnel and alert the police. When an
image sensor detects an anomaly, it instantly transmits
the image to SECOM’s control center staff. If there is anintruder alert, the system sends still images of the eventand several frames preceding and following it. If an
emergency button is pressed, the system sends a still
image of the emergency event and several frames preceding it and continues to transmit the real-time images. The
images received at the control center are displayed on amonitor, allowing the staff to respond appropriately. The
staff can use the image sensor to visually confirm the stateof the subscriber’s premises, its built-in microphone tolisten to the room and its speaker to provide a trespass
warning to any intruders.
In 1999, we launched SECOM IX image monitoring system, an on-line security system designed to prevent robberies of convenience stores and otherlate-night commercial establishments. SECOM IX uses
closed-circuit television (CCTV) monitoring and moving
image transmission technologies to transmit video
images, sound and emergency signals to our image
centers when an emergency button is pressed or monitoring is requested. The emergency button may bepressed by an employee at the subscriber’s premises if
the employee feels threatened. Requests for monitoring
may be made if the employee feels uneasy. When the
resulting images and sound reach the image centers,
which are located within control centers, center staff
can analyze the situation, make an announcement
using the remote speaker, dispatch emergency response
personnel and notify law enforcement officers. We havealso used SECOM IX to develop Image Patrol Service,
which offers constant, remote monitoring of premises
from our image centers.

visionAs these systems illustrate, we are incorporating
the latest image-processing technologies in our systems
to improve their functionality and effectiveness.
Through efforts to market SECOM AX and SECOM IX systems, we are helping to counter the impact of the rise incrime in Japan in recent years.
Network Security Services—
Protecting the Unseen
Growth in e-commerce and the submission of personal
information, such as applications and resumes, via theInternet, is fueling the need for effective cyber security
for commercial and residential users. A crucial component of today’s information infrastructure, cyber security
services range from the formation of security policies tocounter the various threats associated with Internet use,
to services relating to public key infrastructure (PKI) anddigital identities, access control, antivirus protection andthe prevention of unauthorized access.
As the leader in Japan’s security industry, SECOM
is developing network security services as part of theSocial System Industry, thereby complementing its
extensive physical security services.
Subsidiary Secom Trust.net provides network
security monitoring and authentication services.
Network monitoring services involve computer experts
specialized in computer virus and unauthorized accesscountermeasures to offer SECOM Virus Monitoring
Service, an around-the-clock virus protection service forthe networks of companies and organizations, andSECOM Intrusion Detection Service, a real-time remotemonitoring service. Authentication services include
SECOM Passport for Web, which issues certificates for
Web sites with encoded transmissions; SECOM Passport
for Members, which issues certificates for use within
specific corporate or other organizations; andcertificate authority hosting services, which encompass
the construction and operation of certificate authority
services on behalf of customers.
In December 1998, SECOM led 17 other companies in forming Entrust Japan Co., Ltd., to market the
PKI products created by Entrust, Inc., a U.S. based
world-renowned leader in this market.

SECOM has 47 control
centers linked on-linewith subscribers
around the clock.

is expanding the scope of its security services

SECOM CO., LTD. Annual Report 2001

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Home Medical Services

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8

Social System Industry

SECOM CO., LTD. Annual Report 2001

In December 2000, we completed SECOM Secure
Data Center, which is protected by highly sophisticatedaccess control, to facilitate the provision of network
access control and antivirus monitoring services,
enabling us to offer total protection encompassing both
physical and cyber security.
As the Internet community continues to develop,
we aim to sustain a leading position as a provider of thecyber security so crucial to its operation.
SECOM—The Trusted Name in Home Security
SECOM developed its first home security system in 1981.
Since then, the market for home security systems haschanged significantly, owing to the forces of urbanizationand internationalization as well as the aging of Japan’ssociety. There is now a greater general awareness of andinterest in services providing security and peace of mind.
In addition to protecting their residences while
they are away, SECOM home security systems connect
subscribers’ homes to SECOM control centers via an
on-line network, ensuring peace of mind even when
they are at home. This system detects intruders, fires
and gas leaks and features a portable wireless alarm
allowing subscribers to summon emergency or medical
assistance from anywhere in the home. If an alarm isactivated, control center staff are alerted and immediately dispatch SECOM emergency response personnel.
This system has enabled us to build solid relationships
because customers know they can rely on us to be
there when needed.
Just as a secure home is the foundation of daily
life, home security systems are the foundation uponwhich we are working to realize our Social System
Industry vision. We are devoting considerable resources
to tapping the residential market. As part of these efforts,
we have established home security shops nationwide topromote security services and products. Moreover, weare combining home security with services provided byother Group companies, such as comprehensive residential insurance policies offered by Secom General
Insurance or health advice offered to subscribers athome over our health hotline, to further earn consumers’ trust and appreciation as the top name in home
security.

visionFamily Health and Medicine as an Extensionof Home Security
We view health and medical services as an inherent
component of our mission to provide security andpeace of mind. Our entry into the medical field camewith the launch of the My Doctor emergency medical
alert system, which we offer as part of our home
security services.
Since 1991, we have operated Japan’s first fullfledged home medical care service. Until then, patients
had to be admitted into a hospital to receive medical care.
We believe an affluent society is one that offers people
choices. This concept also extends to health care.
Our principal medical care businesses are pharmaceutical services, in which intravenous medicines prescribed by the patient’s physician are prepared in our“clean room” and then delivered to patients; and homenursing services, in which highly skilled, experienced
nurses provide medical care under the direction of physicians, including patient observation, treatment of bedsores, catheter management and rehabilitation guidance.
In 1999, amendments to Japan’s Medical Care Insurance
system made it possible for private-sector nursing stations
to offer home medical care services covered by the system. Since then, we have established nursing stations in
25 major urban centers throughout Japan.
We continue to expand our medical and healthcare services. Recent additions include Hospinet, aremote image diagnosis support service provided to
medical institutions. We operate two of Japan’s toprated residential facilities for senior citizens and haverecently acquired a medical instrument firm.
We will continue to reinforce our medical services with the aim of helping people to live healthierand more rewarding lives. At the same time, we will
strive to enhance our grasp of market needs andbroaden the scope of this key business.

SECOM’s medical
services businessincludes SECOM
Pharmacy, which fillsprescriptions anddelivers them topatients.

Promoting Peace of Mind with Insurance
We have long felt that bundling on-line security systems
with casualty insurance would enable us to offer theultimate in security and peace of mind. We also believecustomers would feel reassured if both the security company protecting their premises from criminal activities
and disasters and the insurance company providing

is expanding the scope of its security services

SECOM CO., LTD. Annual Report 2001

9

COCO-SECOM
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SECOM’sSocial System Industry

10 SECOM CO., LTD. Annual Report 2001

coverage for such events were one and the same. With
the deregulation of Japan’s insurance industry in 1996,
such comprehensive services became possible. In 1998,
we entered the insurance industry by investing in adomestic non-life insurance company. Now called
Secom General Insurance, this company is involved indeveloping unique insurance products worthy of the
SECOM tradition.
Secom General Insurance’s current lineup
includes Secom Anshin My Car, an automobile insurance policy that provides around-the-clock on-site
emergency services, including the dispatch of SECOM
emergency response personnel in the event of a traffic
accident. For corporate clients subscribing to our online security systems, the company offers Security
Discount Fire Policy, a fire insurance policy with a
discount on premiums that reflects the low risk posedby these subscribers.
Our third main insurance product is Secom
Anshin My Home, a comprehensive fire insurance policy. A particularly attractive feature of this policy, which
covers both the residence and its contents, is the significant discount on premiums offered to subscribers to ourhome security services in recognition of their low-risk status. In addition to the risk of theft or disaster being
reduced by the home security system, a portion of theftprovisions is already covered by a general insurance policy borne by the home security system, allowing us tooffer the policy at very attractive rates.
By entering the insurance field, SECOM hasequipped itself to provide total security and peace ofmind—from prevention through to compensation.
Protecting People and Property on the Move
Starting from April 2001, SECOM has launched COCOSECOM, a new suite of mobile security services, which
utilizes the know-how and network expertise gained
from our commercial and home security services andthe latest locator technologies to extend protection topeople or vehicles on the move. If the whereabouts
of a person carrying a compact wireless terminal isunknown, or if a motorcycle or other vehicle equippedwith the device is stolen, the COCO-SECOM Operations
Center can locate the person or property and notify thecustomer. Emergency response personnel can also be
dispatched from a nearby SECOM emergency depot tovisionthat location at the customer’s request and report backto the customer. In addition, COCO-SECOM includes
Automobile Monitoring Service, which involves the
COCO-SECOM Operations Center operator notifying thecustomer immediately if his or her vehicle is moved
from its parking spot, triggering an alarm.
Competitive advantages of COCO-SECOM services
include accuracy, ease of use and an affordable price.
These services combine data from both GPS satellites
and cellular telephone base stations to provide thehighest locating accuracy currently available. The
portable homing device used with the service is also
extremely light and compact, resembling the latest
models of cellular telephones. Moreover, the monthly
fees for the various services are reasonable comparedwith other services currently on the market.
To use COCO-SECOM, a customer requests
SECOM to locate the target person or vehicle carrying
the compact homing device. At the COCO-SECOM
Operations Center, the operator then conducts a searchusing GPS satellite signals and the cellular telephonebase station network. The customer is then informed ofthe location (map location or address) by telephone or
the Internet. If the customer requests, SECOM dispatches emergency response personnel from the nearest depot to the site and, if the situation warrants it,
notifies the appropriate authorities.
Our COCO-SECOM service was developed in
response to the growing number of missing persons andkidnappings in Japan, as well as the rising incidence of
motorcycle and automobile theft in recent years. The
system is attracting considerable attention because of
its effectiveness in alleviating concern and providing
people with alternative ways of addressing these problems. COCO-SECOM is attracting attention as an innovative new component of the Social System Industry thathas expanded the reach of security services beyond thehome and office, thereby helping to make life moresecure, convenient and comfortable.

Staff at the COCOSECOM Operations
Center respondpromptly to requests
from subscribers tolocate persons
or vehicles.

is expanding the scope of its security services

SECOM CO., LTD. Annual Report 2001 11