Ensuring a Fair Return to Shareholders

Recognizing the provision of a fair return to shareholders as an important management task, SECOM has established a basic policy whereby it determines its consolidated dividend payout ratio and the level of its internal reserves based on an overall assessment of trends in the nature and scale of its business and its consolidated operating results, in line with its policy of ensuring consistent, stable dividends. In principal, the Company distributes dividends once annually for the payment of year-end cash dividends, which is approved at the General Meeting of Shareholders. The Company also applies internal reserves to investments required due to increases in its subscriber base, as well as to R&D and strategic business investments, with the aim of reinforcing its corporate structure and expanding its operations.

Years ended March 31

	2005	2006	2007	2008	2009	2010	2011	2012	2013	2014 (Projected)
Dividends (Yen)	50	60	80	85	85	85	90	90	105	115
Consolidated dividend payout ratio (%)	*	*	30.9	31.1	87.9	38.9	32.2	55.3	36.0	38.0

Note: In the year ended March 31, 2007, the Company shifted the basis for determining dividends to consolidated results, from nonconsolidated results.