Secom’s overseas sales ratio is currently 5.4%, but it has been suggested that this could rise to 28%, depending on the consolidation scope. A letter has been released proposing that South Korea’s S-1 and Taiwan’s タイワン・セコム be included in the consolidation, and the impact of their differing fiscal year-ends is discussed.
The overseas sales ratio of Secom, Japan’s largest security services company, could change substantially from 5.4% to 28% if the consolidation scope in its financial statements were changed. Including South Korea’s S-1 and Taiwan’s タイワン・セコム, the 2 companies currently excluded from consolidation, is expected to significantly increase reported revenue and EBITDA.
FCP, an institutional investor based in Singapore, released a letter and proposal document dated 2026/9/29, calling for the Korean and Taiwanese affiliates to be consolidated and for a new medium-term plan to be formulated. In response, the company’s ROE is below 10% among the medium-term targets set out in Roadmap 2027, and delays in progress toward the overseas ratio target have been identified as an issue.
FCP estimates that if S-1 and タイワン・セコム were consolidated, Secom’s revenue would increase by approximately 31.4% and EBITDA by approximately 27.8%, potentially bringing the overseas sales ratio to 28%. This estimate, however, reflects differences in fiscal year-ends.
The current overseas sales ratio is 5.4%, a slight increase from 5.3% in the fiscal year ended March 2023, but it could change substantially depending on any expansion of the consolidation scope.
The article introduces efforts to examine the treatment of equity-method affiliates and the impact of the consolidation scope as a way of assessing the growth potential of the overseas business.