[Company analysis] Secom Co., Ltd. (セコム)

「Secom Co., Ltd. (セコム)」is Japan's first comprehensive security company and the largest security service provider in Japan. and it has operations not only in Japan but also in 21 countries around the world. Their main business is security, but they are also conducting disaster prevention, medical care, insurance, geographical information, information and communications, and real estate business. The number of consolidated employees is approximately 63,080.

 

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Secom Co., Ltd.
Company name (Japanese)	セコム
Date of establishment	Saturday, July 7, 1962
Headquarters location	〒150-0001 東京都渋谷区神宮前1丁目５番１号
Capital	66,300
Consolidated sales	1,013,823
Consolidated operating profit	130,213
Consolidated total assets	1,765,105
Consolidated capital	1,125,954
Capital adequacy ratio	63.8%
Consolidated number of employees	63,080

 

 

 

2. Summary and Features

 
「Japan Security Co., Ltd.(日本警備保障株式会社)」, which is the first security and security company in Japan, established by Iida Akira(飯田亮) in July 1962, is the beginning of「Secom」. Shortly after its founding,「Japan Security」became in charge of the security of the athletes' village during "Tokyo Olympic Games (1964)". At this time, this company realized that there is a limit to the security provided by human power. In order to overcome this, they decided to introduce an online system into the security field.

 

Today, in Japan, the company name「Secom」is synonymous with mechanical security system. So the action of operating or introducing the security system is sometimes referred to as "Doing Secom". In this way, the mechanized security system developed by this company is applied not only for crime prevention, but also for fire alarms, building facility control and monitoring, and automation of ATMs in banks.

 

Besides, along with the spread of personal computers, they built the world's first computer security system in March 1975. And since 1981,「Secom」has also focused on personal security business. This company is the leader of security industry in Japan, so it has strong brand power with a leading advantage over competitors.

 

In addition to the security field, they purchased a medium-sized non-life insurance company in 1998, and entered the insurance business by launching「SECOM General Insurance Co., Ltd.(セコム損害保険株式会社)」. In the following year, they took a capital stake in「Pasco」, which was the largest in the field of aerial survey and GIS (Geographic Information System), and started the geographic information service business. As of 2006, by making 「Nomi Disaster Prevention(能美防災)」, the largest company in the disaster prevention industry a subsidiary, added disaster prevention business to their portfolio.

 

Besides, they were engaged overseas expansion in relatively early stage. In 1978,「SECOM」started its international business by providing the first online security system in Taiwan. Currently, they conducts oversea security business( Korea, China, Malaysia, Singapore, Indonesia, Vietnam, Myanmar, Turkey, United Kingdom, Australia, New Zealand) and oversea disaster prevention business(Taiwan, China, Vietnam, United Kingdom, Australia, New Zealand) and oversea geographical information service(Belgium / Indonesia / Thailand / Philippines).

 

Currently「Secom」has 2,800 locations throughout Japan, which is the highest level in the security service industry in Japan. However, it is generally difficult to say that the field dispatch is quick.  Although there are many bases, one security guard is normally responsible for is 800 to 1,500 buildings. So the speed of emergency response depends on the region and location. Recently, this company is actively engaged in research and development of various security devices, not only in existing security related fields, but also in autonomous traveling patrol monitoring robots, valuables transportation security robots, and nursing assistance robots.

 

 

 

3. Major Business

 

■ Security business
As Japan's first security and security company, they provide "patrol services" and "resident security services." In 1966, this company developed Japan's first online security system for enterprises.

■ Disaster prevention business

■ Medical business

■ Insurance business

■ Geographic information service business

■ BPO / ICT business

■ International business

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		928,098	970,624	1,013,823
Consolidated operating profit		131,050	135,448	130,213
Consolidated total assets		1,650,176	1,720,268	1,765,105
Consolidated net assets		1,013,253	1,081,213	1,125,954
Breakdown of sales	Security business	534,295	545,789	558,388
	Disaster prevention business	126,231	136,558	140,257
	Medical business	66,839	70,987	72,276
	Insurance business	41,965	43,249	44,811
	Geographic information service business	51,609	50,905	51,591
	BPO・ICT	49,834	69,741	92,120
	Real estate・Others	57,323	53,391	54,376