Secom : Financial Report - year ended March 31, 2017

Note: The following is an abridged English translation of Financial Report (Kessan Tanshin) of SECOM CO., LTD. The Company

provides this translation for your reference and convenience only and without any warranty as to its accuracy or otherwise.

May 11, 2017

Company name: SECOM CO., LTD. (URL: http://www.secom.co.jp/) Code number: 9735 Tokyo Stock Exchange ----- First Section Representative: Yasuo Nakayama, President and Representative Director

For inquiries: Junzo Nakayama, Executive Director Phone (03) 5775-8100 Scheduled date of General Shareholders' Meeting: June 27, 2017

Scheduled date of dividend payout: June 28, 2017

Scheduled date of filing Securities Report: June 27, 2017 Preparation of supplementary materials: Applicable

Holding of results information meeting: Applicable (for institutional investors and analysts)

1. Consolidated financial results for the fiscal year ended March 31, 2017 (April 1, 2016 - March 31, 2017)

2. Consolidated operating results (In millions of yen, figures rounded down)

   Years ended March 31
   2016	2017
   Revenue	881,028 4.8%	928,098 5.3%
   Operating profit	128,582 4.0%	131,050 1.9%
   Ordinary profit	134,826 (1.4%)	147,033 9.1%
   Net income attributable to owners of the parent	77,039 2.2%	84,170 9.3%
   Basic net income per share (in yen)	352.97	385.64
   Diluted net income per share (in yen)	‐	‐
   Net income / Equity	9.4%	9.8%
   Ordinary profit / Total assets	9.1%	9.1%
   Operating profit / Revenue	14.6%	14.1%

   Note 1: Comprehensive income:

   Year ended March 31, 2017: JPY 101,312 million [55.5%]

   Year ended March 31, 2016: JPY 65,157 million [(46.1%)]

   Note 2: Net gains from investment in affiliated companies accounted for under the equity method: Year ended March 31, 2017: JPY 3,734 million

   Year ended March 31, 2016: JPY 6,069 million

   Note 3: There is no diluted net income per share as there are no shares with dilutive effect. Note 4: Percentage figures represent changes from the results of the previous year.

3. Consolidated financial positions (In millions of yen, figures rounded down)

   March 31, 2016	March 31, 2017
   Total assets	1,568,052	1,650,176
   Net assets	943,144	1,013,253
   Equity ratio	53.1%	54.1%
   Net assets per share (in yen)	3,817.82	4,086.87

   Note 1: Equity as of:

   March 31, 2017: JPY 892,000 million

   March 31, 2016: JPY 833,284 million

   Note 2: Equity is calculated by deducting noncontrolling interests in subsidiaries from net assets. Net assets per share is calculated by dividing equity by the number of common shares outstanding, excluding treasury stock, as of March 31.

4. Consolidated cash flows (In millions of yen, figures rounded down)

5. Years ended March 31
   2016	2017
   Cash flows from operating activities	136,734	171,121
   Cash flows from investing activities	(129,247)	(42,964)
   Cash flows from financing activities	(26,849)	(55,942)
   Cash and cash equivalents at end of the period	221,760	292,994

6. Dividends (In millions of yen, figures rounded down)

   Years ended March 31
   2016	2017	2018 (projected)
   1st quarter dividends per share (in yen)	-	-	-
   2nd quarter dividends per share (in yen)	65.00	70.00	75.00
   3rd quarter dividends per share (in yen)	-	-	-
   Year-end dividends per share (in yen)	70.00	75.00	80.00
   Annual dividends per share (in yen)	135.00	145.00	155.00
   Total annual dividend payout	29,465	31,647
   Dividend payout ratio (consolidated)	38.2%	37.6%	39.9%
   Total dividends / Net assets (consolidated)	3.6%	3.7%

   Six-month period ending September 30, 2017	Year ending March 31, 2018
   Projected revenue	445,000 1.1%	940,000 1.3%
   Projected operating profit	57,900 (6.8%)	132,400 1.0%
   Projected ordinary profit	60,000 (10.9%)	139,200 (5.3%)
   Projected net income attributable to SECOM CO., LTD	37,400 (8.5%)	84,800 0.7%
   Projected basic net income per share (in yen)	171.36	388.53

7. Projections for the consolidated financial results for the fiscal year ending March 31, 2017 (April 1, 2017 - March 31, 2018) and the six-month period ending September 30, 2017 (April 1, 2017 - September 30, 2017) (In millions of yen)

8. Note 1: The projected basic net income per share is calculated based on the number of common shares outstanding, excluding treasury stock, as of March 31, 2017.

   Note 2: Percentage figures represent changes from the results of the corresponding periods of the previous year.

   * Note

9. Significant changes in subsidiaries during the period (changes in specified subsidiaries accompanied with changes in scope of consolidation): None

10. Changes in accounting policies, accounting estimates and/or restatements:

    ① Changes in accounting policies associated with amendment of accounting standards: Applicable

    ② Other changes in accounting policies: None

    ③ Changes in accounting estimates: None

    ④ Restatements: None

11. Number of common shares outstanding:

① Number of common shares outstanding, including treasury stock, as of: March 31, 2017: 233,288,717shares

March 31, 2016: 233,288,717 shares

② Number of shares of treasury stock as of:

March 31, 2017: 15,028,470 shares

March 31, 2016: 15,026,824 shares

③ Number of average common shares outstanding over:

The year ended March 31, 2017: 218,261,126 shares

The year ended March 31, 2016: 218,262,729 shares

[Reference] Summary of nonconsolidated results

1. Nonconsolidated financial results for the fiscal year ended March 31, 2017 (April 1, 2016 - March 31, 2017)

1. Nonconsolidated operating results

   (In millions of yen, figures rounded down)

   Years ended March 31
   2016	2017
   Revenue	376,044 1.5%	382,476 1.7%
   Operating profit	75,664 3.4%	76,283 0.8%
   Ordinary profit	86,612 6.2%	86,543 (0.1%)
   Net income	58,442 1.7%	63,260 8.2%
   Basic net income per share (in yen)	267.76	289.84
   Diluted net income per share (in yen)	‐	‐

   Note: Percentage figures represent changes from the results of the previous year.

2. Nonconsolidated financial positions

(In millions of yen, figures rounded down)

March 31, 2016	March 31, 2017
Total assets	826,124	850,851
Net assets	678,355	713,263
Equity ratio	82.1%	83.8%
Net assets per share (in yen)	3,107.99	3,267.95

Note: Equity as of:

March 31, 2017: JPY 713,263 million

March 31, 2016: JPY 678,355 million

Note on status of audit procedures

This report is excluded from the scope of audit procedures.

Note on appropriate use of projections for the financial results; other special items:

The forward-looking statements including the future performance described in this document are provided based on both all information available at this moment and certain assumptions considered reasonable. Actual performance may differ materially from the forward-looking statements due to various factors hereafter occurred. For matters regarding assumptions on financial projections and notes for the use of financial projections, please refer to "1. Operating Results (4) Projections for the fiscal year ending March 31, 2018" on page 6 to 7 in the appendices.