Industry-support institutions provide: Finely tuned business support and incubation services

Fully Supporting SMEs ! City Industrial Promotion Center ■ Business Matching Service A business matching service is provided based on the information on products and technologies collected from visits to companies in the city. Our business matching coordinators with specialized knowledge help identify potential business partners from among more than 1,300 local small- and medium-sized manufacturers. Linking Companies with Sakai City ■ Support Program for Industry-University Collaboration/Technological Development Dedicated coordinators provide a matching service to commercialize the research seeds of universities and public research institutes or to solve issues in developing Guidebook for Business new products/technologies.

■ Support Center for Introducing IPC Smart Manufacturing The Center supports companies considering introducing IoT, AI, or robots to improve Investment in Sakai productivity, create high value-added products and technologies, or address personnel deficiencies. ■ Development of Resources for Business We support human resources development by holding various kinds of seminars and training for those engaged in manufacturing. They include seminars for current and future business owners who are expected to play a leading role in bringing innovation and a competitive edge to the industry.

Contact Financial Support Division, Sakai City Industrial Promotion Center 183-5 Access the website from here. Nagasone-cho, Kita-ku, Sakai City, 591-8025 TEL:+81 (0)72 255 6700 FAX:+81 (0)72 255 1185 URL:https://www.sakai-ipc.jp/

Basis for Business Incubation in Sakai for Future Hope and Challenge Sakai Business Incubation Center (S-Cube) The Center rents office or laboratory space to entrepreneurs who plan to start new businesses or develop new products and technologies, and provides free and comprehensive management support from incorporation to commercialization in accordance with the individual needs of each tenant. ■ Eligibility ●Companies in the growth stage just after starting up ●Small- and medium-sized companies or university teaching staff involved in industry-university collaboration ●Small- and medium-sized companies trying to start new ventures ■ Available Support ●Business space rental (office, laboratory and desk) ●Management support (free of charge) ●Rental fee assistance (office and laboratory) Subsidy amount:50% of rental fee (25% if headquarters is located outside Sakai) Period:3 years after beginning tenancy Office Laboratory

Contact Sakai Business Incubation Center 130-42 Nagasone-cho, Kita-ku, Sakai City, Osaka 591-8025

TEL:+81 (0)72 240 3775 FAX:+81 (0)72 240 3662 Access the website from here. URL:http://www.s-cube.biz/ E-mail:[email protected] (in Japanese only)

Inquiries regarding this brochure

Innovative Investment Promotion Office, Commerce, Industry and Labor Department, Industrial Promotion Bureau, Sakai City 3-1 Minamikawara-machi, Sakai-ku, Sakai City, Osaka 590-0078, Access the website from here. TEL: +81(0)72 228 7629 FAX: +81(0)72 228 8816 Mail: [email protected] URL: http://www.city.sakai.lg.jp/ Sakai City Mayor's Office: Office c/o Tokyo Office, 7th floor, Prefectural Assembly Hall, 2-6-3 Hirakawa-cho, Chiyoda-ku, Tokyo 102-0093 TEL: +81(0)3-5276-2183 FAX: +81(0)3-5276-2587 Email: [email protected]

Published December 2020 Sakai, a City of Endless Prefecture A Location Perfectly

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SanyoSaSanany ShinkansenLiLinLinenne obebe Line (Hakata) RKoKoKobeKob ● ● Osaka from JR Sannomiya Station by train JR K Kobe ● ■Area 149.82㎢ SShin-OShinhhininn--OsOsaO Osssakasaakkak ● ● NNishinomisshhinonomiyanomiynomo iyiyayya ICC ● ● Tokyo FuseFuFususeseehhhathaatatta Approx. 30 min. Sakai City ■Population Density 5,516/㎢ JCJCTCTT SumiyoshihamaSumSSumiyiyoyoyosshihhaamma ICC from Station by train SannomiSSannomiyaSannomiiyiyayya PoPorP OsakaOsaOOssaakka (Umeda(U (Umed( meedda)a) oort L ※As of April 1.2020 rt L ttLi waywayy Higashi-OsakaHigashi-OHigigagaashi-Osakaasshi--OsOsakOssaakakaa JJCJCTCTC DainiDDaini HaHannannna LLinLine HanshinHaHanshns hish E in ExpresswayExxpxprereseesssswswa iinerinenener Koobbeb RRoouuutete Tolll RRoadRooaadd To Shin Chitose Airport Approx. 2h20min. by air er HaHanshinansnsshshinhin ExExpressway Expxpresswaypyprepresesssswswawayayy r 【Working Population】 NaNamambba HHigasigigagasgashi-Osakaasashi-Osakashshi-Osakahkhi--OsOsOsaakaka Ro Routeoututetet HanshinHansshhin ExpresswayExxxppprpreresesswesssswswawayayy To Sendai Airport Approx. 1h35min. by air WakamiyaWaakakaamiyiyayay IC WanganWanWWaangannngagan RRouteRooououtuutette Approx. 12 min. Primary Industry 1,738 persons To Tokyo Station Approx. 2.5h by KobeKoobebbe AAiAir Airporrpporrtt from Nankai Station by train To Nagoya Station Approx. 1h by shinkansen HanshinHaHansansnsshhin ExExpresswayxpxpresswayprepresswayresesssswswawayay MaMat MMatsubaraatststsususubarubbbaarara RoRouteRououtoutetet Secondary Industry 82,811 persons HanshinHansshhinin ExExxpprespreresesssswswaswaysswwayayy KinkiKKinkki Expressway EExxppresswaypreresessssswsswawayayy To Hiroshima Station Approx. 1.5h by shinkansen WanWaangannngagan RoRouteRouooututette SSaambboo JCJCTJCCTT y MMaMatsubaraMatsuatstssubbabarabarararar JCJCTJCCTT ay Tertiary Industry 255,315 persons SSakak i way HaHanshinnsshhinin ExExxppprepresswaypresswresesssswswawayayy HanshinHaansnsshinshhin ExExpres Expresswayxppresswayprepresesssswswsswawayayy esssswsswa To Approx. 2.5h by shinkansen SSaSakaikakkaii RoRRoR tououteute prepres ※Total of 365,836 persons, including 25,972 in unclassified industries. Yamato YYamatoYaammatatotogawatoogagawawawa RRouRouteRooututette Expxpresswayxpre SakaSSaSakaishkakaasisiihshshi nEx To Tokyo Approx. 6h by road (2015 Population Census) SSaakakkaai ICC (Entirely(E(EnEntnttiriirereelyly openeooppenedpeenenededd inin March MarcMaarcrccchh2 202020202020200) hanan E Sakai-SeSaakakaai-i-S-SeSeemmbobokkkuu eiha SakaihigashSSaSakaihigashiSakaihigSkihkkaihigigagasgasshi MMihharahaararra J JCJCTCTCT Meih To Nagoya Approx. 3h by road TToolll RRoaRooaadd ishi-Mshi-Mhi-Mhi-Mei Nishi-MeihanNisNish Expressway 【Number of Business Facilities and Employees】 SSukemaSukeemmaatsttsssu JJCJCTCTCT To Hiroshima Approx. 4.5h by road SSakaiSaakakkaai J JCJCTCTCT To Hakata Approx. 8.5h by road Total No. in Sakai 30,471 business facilities 314,806 persons SakaiSSaakakaikaai ICC Minami-HannaMMinnaami--HaHaannnna Prefecture NaN nkkaikai MaM in LLinne NankaNaannkakaai RoadRooaadd ※Travel times are rough estimates, with Kansai International Airport (by y air), Shin-Osaka Station (by shinkansen) and Expressway Sakai Manufacturers business facilities (over 3 employees) 1,556 51,674 persons Approx. 30 min. kuu KoyaKoKoyoyayya LLinLineinene oku lwayway IC (by road) taken as starting points. bokbokuailwailwa from Kansai International Airport Station by train mbombokRailw SeSembSemememb d Rai Wholesalers 1,246 business facilities 12,087 persons ne apapidpid RailwayR LinLine RaRRapidRap Ra a Lin The opening of the Travel Time from Major Stations and Airports in Osaka KaKansainssai IInternational Internantnteternattittionaonal AAiAirrppoportpororrtt wwa L nwa Retailers 3,858 business facilities 36,527 persons anw Yamatogawa Route shortens HanwaHan Li RHa the time required to travel (2016 Economic Census) JR H Osaka International Airport Kansai International Airport RRiRinnnkukku JCJCT JCCTT between Sambo IC (Itami Airport) and JCT by HanwaHaanwnwawa ExExpresswayxpprereesssswswawayayy 【Year-on-year Average Fluctuation Rate of approximately 30 minutes. Approx. Approx. + 50 min. 30 min. Land Prices in Residential Areas (past 6 years)】 * Compared with the time required (Unit: %) IzzumzumissanosaannooJC JJCJCTCTCT when using general roads 2015 2016 2017 2018 2019 2020 Sakai City Japan ▲0.4 ▲0.2 0.0 +0.3 +0.6 +0.8 Approx. Osaka Prefecture ▲0.1 0.0 0.0 +0.1 +0.2 +0.4 30 min. Sakai City +0.2 +0.3 +0.6 +1.2 +1.5 +2.1 Approx. 35 min. (Based on the Land Market Value Publication provided by An increase for Osaka (Umeda) the Ministry of Land, Infrastructure, Transport and Tourism) Seven consecutive years * The average fluctuation rate refers to the mean value of fluctuation rates of standard land prices from the previous year. Shin-Osaka * +: Year-on-year increase; ▲ : Year-on-year decrease

1 2 Sakai City is home to a large number of Topic Kura Stadium SAKAI energetic SMEs, ranging from industry-leading (Baraike Park Baseball Stadium) Sakai: A childcare-friendly city Sakai: Japan’s leading In April 2020, the stadium opened as a companies to those renowned for superior facility where citizens can enjoy baseball in a high-quality environment and watch with a comfortable and industrial city technologies and services, and those with high-level games. With a seating capacity of about 5,000, it is Sakai City’s first full-scale secure living environment a long and distinguished history. baseball stadium.

Ranked No. 7 nationwide in terms of the Ranked No. 1 among 20 major cities in Ranked No. 9 nationwide and No. 2 shipment value of manufactured products Japan in terms of the per capita shipment in Kansai in a survey on the degree of value of manufactured products sustainability attainment according to SDGs ranking in FY 2018 (Nikkei Glocal, Issue 355, January 2019) Sakai’s Industrial Power (Survey target: business facilities with 4 or more employees) This survey was conducted for 815 cities and wards Per capita shipment value of manufactured products nationwide from the perspective of the Sustainable Shipment value of (companies with 4 employees or more) manufactured products Development Goals(SDGs)adopted by the United 500 Brand Nations. It evaluated how satisfactorily each No. of employees Power 423 municipality achieved a development outcome with a 7 th 400 good balance between the economy, society, and 3,518.7billion yen environment while facing the issues of population Mozu-Furuichi Kofungun th Production 300 284 10 No. of business facilities 270 268 decrease and aging society. (Nintoku-tenno-ryo , Sakai City) 50,347persons Capacity 246 225 Stretching over three cities in southern Osaka̶Sakai, , and 213 1 Kyoto City 6 City 200 190 Fujiidera Cities̶Mozu-Furuichi Kofungun is a group of ancient burial 178 2 City 7 City 150 143 141 mounds built from the late fourth century to the first half of the sixth th 135 125 3 City 8 Ward 10 107 century. It comprises Nintoku-tenno-ryo Kofun, which is the largest 1,355companies 100 85 4 Toyota City 9 Sakai City 66 63 keyhole-shaped tomb in Japan, and others of various shapes and sizes. 36 29 5 City 10 Nagoya City It was registered as a World Heritage Site in July 2019. 0 Sakai City City Kawasaki City Hiroshima City To establish a hydrogen energy society City Kitakyushu City Kobe City Sagamihara City Kyoto City Nagoya City Nigata City Okayama City Osaka City City City Sendai City Saitama City City Fukuoka City Sapporo City Ten thousand Ranked No.1 in western Japan on Using the potential of its coastal area as a yen hydrogen energy base, Sakai City promotes efforts a list of cities most friendly to to provide its citizens with education programs working parents and their children regarding the creation of a hydrogen energy (Nikkei DUAL×Nikkei Inc. 2019) society and to accelerate hydrogen-related Preferential treatment for companies Changes in the Number of Applications for Certified Children’s investments, under the theme of“Make, use, and Centers and Children on Waiting Lists diffuse ,” through collaboration among industry, that have invested in Sakai City No. of applications (persons) 19464 20000 academia, and the public sector. 19002 No. of children on 19000 ●Sakai City waterfront areas such as Sakai When a small or medium-sized waiting lists (persons) 18266 1000 18000 Semboku handle approx. 65% of the 17542 FENICE SACAY (Sakai Performing Arts Center) No. of applications 16911 manufacturer invests ¥1 billion 16500 17000 The grand opening was on October 1, 2019.This is Sakai’s new hub for energy consumed in the Kansai region 800 15824 (Petroleum, LNG(in terms of monetary amount)) 16000 the creation, exchange and dissemination of art and culture. to establish its factory 15264 15416 600 14733 15000 ●One of the largest liquefied hydrogen and R&D facility in the city, plants in Japan 400 14000 (In March 2020, Hydro Edge Co., Ltd. will increase 457 13000 a subsidy of approx. ¥92.4 million No. of children on waiting lists its number of liquefied hydrogen production lines.) 200 431 12000 62 61 58 11 2354 16 31 ●Many hydrogen-related business facilities is provided! 0 11000 are located here. 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 【Example】 ♦ Promotion of efforts to resolve the issue of children on (The amount of hydrogen consumption in waterfront A small or medium-sized manufacturer establishes a plant waiting lists areas of Sakai and Takaishi Cities amounts to approx. No. of children on waiting lists: 457 children in April 2012 10% of the amount consumed nationally.) (investing ¥ 800 million) and an R&D facility (investing ⇒ 11 children in April 2020 (approx. 1.4 billion Nm3) ♦ Free daycare for third or subsequent children aged 0 to 2 ¥ 200 million) used for business related to a growing with no income limit or sibling age limit, in addition to the industry field in the waterfront industrial area of the city, national free preschool education and daycare program To create businesses related to ♦ Medical care subsidies for children aged up to 18 with no This museum introduces visitors to the history of Sakai from ancient and hires four local residents as new employees: income limit times to the present in an easy-to-understand manner. It is devoted to the extension of healthy life expectancy ♦ Provision of information on childcare services in line with researching, collecting, and storing a wide range of historical, cultural, ●Subsidies children’s growth through the Sakai Parenting archaeological, and ethnological documents and other materials that With momentum from the relocation of the Faculty Support APP of Medicine, and Kindai University Application of Sakai City Business Growth Promotion Subsidy depict the historical development of Sakai, including its local industries. Hospital to the city and Osaka, Kansai, - Subsidy for facility acquisition: ¥70 million Special exhibitions are held under various themes. Sakai City promotes efforts to create businesses (Factory ¥800 million x 5% = ¥40 million / R&D facility ¥200 and employment related to the extension of million x 15% = ¥30 million) Sakai City Medical Center, healthy life expectancy, and attract relevant - Subsidy for employment: ¥2.4 million a regional medical hub to protect the investments by enterprises into Semboku New (4 newly-hired employees x ¥0.2 million x 3 years = ¥2.4 million) lives and health of citizens Town area. To this end, the city has established ♦ Establishment of the Critical Care Medical Center as the the Sakai city Consortium for Business creation of ● Municipal tax incentives city’s only tertiary emergency medical facility Healthy life expectancy(SCBH)participated in by ♦ Provision of good quality medical care using advanced Application of the Sakai City Ordinance for Promoting Innovative various companies and universities. In addition, to medical equipment and therapeutic methods Investment ♦ Establishment of the Sakai Children’s Emergency Medi- create a smart city in the Semboku New Town - Municipal tax reduction (5 years): approx. ¥20 million* cal Center, which provides emergency medical care area, Sakai City promotes healthcare initiatives for children after hours and on holidays, adjacent to utilizing advanced technologies, including ICT. * Estimated based on past records the Sakai City Medical Center

3 4 Features of Sakai City Topic J-GREEN Sakai Topic Amazing night view: Area Location Environment Boasting one of the largest facilities in Sakai Semboku Coastal An Advanced City Japan, J-GREEN Sakai is Sakai City’s Industrial Zone Low-carbon energy generation base national soccer training center, where This is one of the best factory night view with a Long Tradition of people can fully engage in various spots in the Osaka Bay area! A magical night view on an overwhelming Large-scale logistics hub sports and recreation activities. Manufacturing scale that resembles a space station illuminating the dark night.

Sakai city is approximately divided into 4 areas, the waterfront, urban, suburban, and residential and greenery areas. Transportation infrastructure is becoming so more convenient and well connected with Kansai International Airport that many logistics companies invest in waterfront area recently including foreign affiliated one. Location Potential in the Waterfront Area Sakai is also blessed with academic institutions including Osaka Prefecture University and , and business support facilities for small- and medium-sized companies such as the Sakai City Industrial Promotion Center. Such as the Sakai City Industrial Promotion Center, and the Izumi Center of the Osaka Research Institute of Industrial Science and Technology which provides scientific and technological support. ■ Forming a Low-Carbon Energy Generation Base

Sakai City has been promoting energy saving with advanced and Features of the Sakai City Area innovative technologies, as well as utilizing various renewable and next-generation energy production techniques, such as large-scale solar power and biomass fuel, to drastically reduce greenhouse gas emissions. ■ Waterfront Area Sakai City Hall Sakai Ward Office Route 15 To Namba In this industrial area, there are both To Tennoji To Namba 1 14 large-scale and small- and 3 medium-sized manufacturers. Recent Examples of low-carbon businesses years have seen growing clusters of 12 4 To Umeda 2 JR ❶Environmentally advanced factories through ❾Bioethanol manufacturing using wood waste environment-related businesses as To Tennoji Hanshin Expressway DINS Sakai Co., Ltd. since 2007 well as large-scale logistics centers. Midosuji Subway Line energy saving and energy generation Route 4 Green Front Sakai since 2009 10Waste recycling by subcritical water reaction 10 9 ❷Sakai Solar Power Generation Plant (Mega Solar) REMATEC Corporation since 2006 Osaka Prefecture Kansai Electric Power Co., Inc. since 2011 11Increasing light oil production using heavy oil resolving equipment 15 ■ Urban area ❸Power generation using general waste Production of bio-gasoline by mixing bio-fuel ETBE made from plants 7 11 Sakaikaai University Since olden times the central urban Kita City’s waste treatment facility since 2013 Cosmo Oil Co., Ltd. since 2010 8 13 WardWWa Wardd 5 area has developed as a commercial ❹Power generation using wood waste 12Manufacture of Low-E pair glass (eco glass) with high Japan Novopan Industrial Co., Ltd. since 2007 heat-insulation and -blocking performance and business area. The city’s Nankai ❺High-efficiency LNG combined cycle power generation Central Glass Co., Ltd. since 2011 machinery and metalwork industries The Kansai Electric Power Co., Inc. since 2009 Higashii 13Manufacture of components for lithium-ion batteries are located in the northern and Ward ❻High-efficiency LNG combined cycle power generation Ube Maxell Co., Ltd. southern areas. Co., Ltd. since 2010 14Manufacture of high-purity aluminum for lithium-ion batteries Nishiishi 310 ❼LNG (Liquefied Natural Gas) supply Showa Denko K.K. since 2013 WardW ■ Suburban area 26 Sakai LNG Co., Inc. since 2006 15Production of liquefied carbon dioxide by recovery and reuse of carbon dioxide ❽Manufacture of liquid hydrogen using low-temperature LNG Iwatani Corp. and Cosmo Oil Co., Ltd. Since 2014 With the improvement of the local 309 6 HydroEdge Co., Ltd. since 2006 road network, the potential of the land MiharaMih To City WardWa in the inland area for industrial use has increased considerably, and small- and Naka Ward To Mt. Koya medium-sized business clusters have To Wakayama ■ Formation of a Logistics Hub formed in the Kena and Mihara areas. Sakai City boasts a highly-developed transportation Along the Osaka Subway Midosuji infrastructure (including the Hanshin Expressway Nanko Port Town Line (New Tram) Osaka Subway Line, providing a direct link to Yamatogawa Route scheduled to be completed in Nanko-Minami IC Shin-Osaka Station, large commercial fiscal year 2016), the industrial complex Green Front Hanshin Expressway and business districts have been Sakai, and easy access to Kansai International Airport. Hanwa Expressway Wangan Route (No. 4) Suminoekoen developed, in which there are also These geographical advantages have made Sakaihama Station industrial support organizations. and other waterfront areas an ideal location for 1 Sakai City Industrial Promotion Center logistics/distribution facilities. Sakai Business Incubation Center 2 3 Sambo JCT Suminoe IC Sakai Chamber of Commerce and Industry ■ Residential and ❶Amazon Japan G.K. Hanshin Expressway greenery areas ❷Nissin Corporation 4 Sambo IC Yamatogawa Route To Izumi Chuo Minamii Ward ❸Kanda Holdings Co., Ltd. 5 A residential area (Semboku New ❹Maruzen Showa Unyu Co., Ltd. 7 Town) was developed in the late ❺Goodman Japan Limited 8 1960’s. Local commercial and 6 29 ❻Hanwa Co., Ltd./Hanwa Logistics Osaka Co., Ltd. Shichido business districts have formed in front Exclusive manufacturing zone ❼MFLP ( Fudosan Logistics Park) Sakai, Mitsui Station of the railway stations. 26 Fudosan Co., Ltd. Hanshin Manufacturing zone ❽I Missions Park Sakai, Corporation Nankai Line Expressway ❾Logiport Sakai, LaSalle Investment Management Ohama IC ■ Waterfront Area ■ Urban area ■ Suburban area ■ Residential and greenery areas ●10 Profitmart Sakai, Lonco Japan (No. 15) Sakai [Transportation Access] Station 12 From Sambo IC, Hanshin Expressway Wangan Route To Hanshin Port: approx. 20 min. To Kansai International Airport: approx. 30 min.

From Sambo IC, Hanshin Expressway Yamatogawa Route 10 To Matsubara JCT, : approx. 15 min. 9

5 6 Industrial Features Topic Sakai Plaza of Rikyu Topic Harvest Hill Securing and Akiko Harvest Hill is an agricultural park with an area This plaza is a cultural and tourist facility that eight times larger than Human Resources A Place Where Many Top Class showcases the history and culture of Sakai through (38,500 m²).Throughout the year visitors can Sen no Rikyu, the greatest tea master who enjoy greenery and flowers of the season, Companies Gather redefined the tea ceremony, and Yosano Akiko, a play with animals, savor fancy foods, and Abundant pioneer female author and poet of modern participate in hands-on learning and various Japanese literature. other events. Human Resources

A large number of small- and medium-sized companies are located in Sakai City. To prosper domestically and internationally, they have all made Sakai’s total population is approximately 830,000, with approximately Composition of Population by Age (As of the end of April 2020) efforts to improve their technology and strengthen their brands, and now boast large market shares in their respective industries. Many of them also 450,000 people of working age. There is a good balance between the

exhibit high productivity as well as rapid and accurate production engineering, and advanced planning and development capacity. Sakai’s small- and generations in Sakai and it will be easy to secure human resources for Age 0~19 17.6% medium-sized companies provide the best solutions in many fields. the future. In addition, there are many schools in the city, which ensures Working-age Age 20~39 170,000 20.8% a young workforce for the future. Moreover, collaborative research population Age 40~59 230,000 28.4% between SMEs and universities located in the city is supported Approx.450,000 ■ Details of Sakai's industrial companies ■ Sakai’s Brand“Sakai Wazashu” comprehensively through various efforts to promote cooperation Age 60~79 24.8% between industry and academia. Thanks to Sakai’s history and the advantages of being located near (certification of company with remarkable skill and technique) Age 80~ 8.2%

Osaka City, there is a large variety of industries distributed throughout Sakai City is home to excellent traditional 0 5% 10% 15% 20% 25% 30% the city. Metal product manufacturing and production machinery industries boasting a long history, as well as No. of schools (As of May 1, 2019) No. of students (As of May 1, 2019) manufacturing stand out as the top two manufacturing industries in the many highly advanced companies enjoying a Junior colleges/ 25000 High schools 〈Reference〉Inside Osaka Prefecture city. large shares of global markets. universities 20,337persons The Sakai Chamber of Commerce and 8schools 20000 Junior colleges/ Industry Type (Number of business facilities by industry type in 2018: Industrial Statistics Survey) Industry grants certification for the Sakai Other schools universities High schools 15000 13,217persons 500 brand “Sakai Wazashu”to remarkable Sakai 2schools No. of schools 24schools 28.0% businesses so that they can be recognized throughout Japan and 50schools 10000 Specialized vocational 400 310facilities Industrial high schools around the world, thereby strengthening Sakai City's image and high schools (22.9%) Special technical 5000 300 persons persons developing its economy. A total of 92 companies have so far been schools 16schools 11,907 855 144facilities 200 (10.6%) certified. 0 Special technical schools/ 6.8% 6.1% 5.9% 5.6% 4.8% 4.7% 100 4.6% Contact other schools 0 3,290persons Metal product manufacturing Production machinery manufacturing General-purpose machinery manufacturing Iron and steel industry Textile industry Chemical industry Food processing Transport equipment manufacturing Plastic product manufacturing Others ■ Colleges and Universities Business Support Division, Sakai Chamber of Commerce and Industry ●Osaka Prefecture University ●St. Andrew’s University of Education ●Sakai Women’s Junior College ●Faculty of Health and Well-being, Kansai University ●Taisei Gakuin University ●Poole Gakuin College 130-23 Nagasone-cho, Kita-ku, Sakai City, Osaka 591-8502 (in Japanese only) ●Hagoromo University of International Studies ●Butsuryo College of Osaka ●University Consortium of Southern Osaka ●Izumigaoka Campus, Tezukayama Gakuin University ●Osaka College of Social Health and Welfare TEL:+81 (0)72 258 5503 http://sakaiwazashu.com/ ■ Supporting a wide range of steps from recruiting to fostering and retaining personnel who will play important roles in the future

The support plaza for matching companies and personnel is established at Sakai JOB Station, which provides comprehensive assistance for those who want to work in Sakai. As part of the employment support facility, the plaza offers an integrated service supporting a wide range of steps from disseminating corporate information and recruiting to retaining and fostering personnel. ○Employment support service In the waterfront area, recent years have seen the established cluster of heavy chemical and materials industries •Displaying an original employment-offer card, holding exchange events between companies Sakai’s joined by certain frontier industries. The inland area, on the other hand, is populated by companies from smaller and people in search of employment, etc. Leading Companies and more traditional industries including machining and metal-working, and bicycle and blade manufacture. ○Service to support retaining personnel Sakai is blessed not only with large companies but also many unique and energetic smaller companies. •Providing seminars on recruiting and fostering of personnel and various consultations [Contact] Support plaza for matching companies and personnel, Sakai JOB Station TEL:+81(0)72 238 4750 Large Companies Located in Sakai Unique Sakai-based Companies with Headquarters Located in Sakai ■ Supporting companies that ensure active participation of a wide variety of personnel including women and disabled people 【Iron and Steel, Metal】 【Machinery】 【Bicycle parts】 ・NISSEI KOUKI CO., LTD. ・OSAKI INDUSTRY CO., LTD. One and only producer of air vibration cylinders in Japan Pioneer of road marketing materials ・Kurimoto, Ltd. ・ Corporation ・SHIMANO INC. Sakai City supports SMEs located in the city that actively address issues such as promoting active participation of various personnel and employing ・Showa Denko K.K. ・Konica Minolta, Inc. World’s top bicycle parts manufacturer ・NIPPON SUPER INDUSTRY CO., LTD. “Linephalt” and“Step Guide” (tactile paving) disabled persons by disseminating information regarding such companies, paying incentives, and other means. ・ CORPORATION ・ Industries, Ltd. (Overseas sales ratio: 90%) 40% share in the world market for HDD hubs ・MITSUBOSHI PRINTING INK CO., LTD. Industry pioneer and the world’s leading manufacturer ・NIPPON STEEL COATED ・Hitachi Zosen Corporation ・HATTA INDUSTRIES CO., LTD. ・Horiuchi Machinery Co., Ltd. ○Sakai City Certification System for Companies Promoting Active Participation of Various Personnel 90% share of the racing bicycle parts market of gold and silver ink SHEET CORPORATION and others 40% share in the domestic hydraulic cylinder market ○Sakai City Certification System for Companies Contributing to the Employment of Disabled Persons 【Iron and Steel, Metal】 ・Tohpe Corporation ・NIPPON SHINDO CO., LTD. 【Electricity, Gas, Petroleum】 ・Katayama Kogyo Co., Ltd. 100% share in the domestic market for Top company in the paint industry [Contact] Employment Promotion Division, Commerce, Industry and Labor Department, Industrial Promotion Bureau, Sakai City TEL: +81(0)72 228 7404 FAX:+81(0)72 228 8816 ・MARUICHI STEEL TUBE LTD. ・Osaka Gas Co., Ltd. ・IHI Infrastructure Systems Co., Ltd. A top manufacturer of bridges and water gates national flag/school flag poles with over 100 years in business ・Mitsubishi Materials Corporation ・The Kansai Electric Power ・Asaka Industrial Co., Ltd. ・Matsumoto Machine Manufacturing Co., Ltd. 【Software】 ・Yokogawa Bridge Corporation Company,Incorporated Pioneer of centrifugal precipitators No.1 share of the made-in-Japan shovel market ・YUKE’S CO., LTD. and others ・Cosmo Oil Co., Ltd. Leading developer of Pro Wrestling Many unique and energetic companies are located in Sakai City. Here are ・Koyo Engineering Co., Ltd. ・Miura Chemical Equipment Co., Ltd Testimonials from Companies that Have 【Electric Devices etc.】 ・ENEOS Corporation Leading manufacturer of industrial/swimming pool game software testimonies from two companies that have invested in the city on why they 65% share in the world market for bent metal parts ・Corning Japan Incorporated ・Sakai Gas Center Co., Ltd. filtration equipment Expanded Their Business to Sakai ・ASAHICHUKO CO., LTD. 【Others】 decided to invest in the city and how satisfied they are with their choice to do so. and others and others ・Toyo Suisan Kikai Co., Ltd. Second largest domestic producer of ductile ・Tamanoi Vinegar Corporation 【Chemical】 【Other】 World-leading manufacturer of marine product Over 100 years in the business cast-iron irregular shaped water pipes processing machinery We provide products friendly to people and the environment We meet customer needs as the only steel processing ・, Ltd. ・Central Glass Co., Ltd. Pioneer in the vinegar drink products market through the Ube Group’s products and technologies, center in the Kansai region that conducts integrated ・UENO IRON WORKS CO., LTD. ・Shin Nippon Koki Co., Ltd. ・Lion Corporation ・Nakabayashi Co., Ltd. ・Sakai Moving Service Co., Ltd. encompassing a wide variety of fields ranging from production from leveling processing to shirring processing of 50% share in the domestic valve desorption Japan’s leading manufacturer of large machine Ranked top in sales in the automotive and IT to social infrastructure and daily living. steel within one factory (site area: approximately 26,400 m²) and others ・The Nisshin Oillio Group, Ltd. unit market tools with a 120-year history moving industry ・Amazon Japan G.K. ・STAINLESS PIPE KOGYO CO., LTD. ・Kaji Technology Corporation Sakai Factory, Ube Industries, Ltd. Sankyo Noritake Steel Co, Ltd. ・Kanda Holdings Co., Ltd. One of Japan’s leading stainless plumbing pipe Top share of the market for compressors ・ROUND ONE Corporation for hydrogen stations Ranked top in sales in the amusement/ Based on the business principles of "coexistence and mutual In May 2016, we relocated our Matsubara Factory, where ・Paltac Corporation manufacturers 【Electronic Devices, etc.】 entertainment industry prosperity" and "from finite mining to infinite industry," we we had conducted business operations since 1970, to a ・Japan Casting Engineering provide new value to future generations through site with over three times the area in Chikko , ・Kura Sushi Inc. 70% share in the domestic copper casting industrial ・ manufacturing. Our Sakai Factory, which celebrated its 50th Nishi Ward, Sakai City. Equipped with Kansai’s largest A global company that manufactures electronic devices Leading sushi restaurant chain parts market anniversary in 2017, manufactures innovative and high value-added chemical products that meet classes of two levelers̶a jumbo-sized multiaxial leveler and a high-performance leveler for thin ・SUPER TOOL CO., LTD. ・Sakai Display Products Corporation ・Hiraku Spinning Co., Ltd. demands in the electronics, automotive and aviation fields. In August 2016, we opened the Osaka steel sheet̶as well as 11 shirring machines, our large coil center contributes to increasing Japan’s largest company for carpet woolen spinning A top class manufacturer of work tools with a 100- A leading company that manufactures large displays Research & Development Center within the Sakai Factory to integrally implement R&D work and customer productivity by providing original value. year history 【Chemical】 ・NIKKATO CORPORATION manufacturing technology related to battery materials and other functional products in an efficient and Our sales areas are not only in the Kansai region, but also throughout Japan. The new center is A leading company in the ceramics industry speedy manner. also convenient as a logistics hub, partly because it is located on land with a quay through which 【Machinery】 ・Sakai Chemical Industry Co., Ltd. One of the advantages of Sakai City is its accessibility to Kansai International Airport, which enables raw materials and products can be shipped by sea. In addition, since Onoken Co., Ltd., which A long-established company with a 100-year history ・Coaken Techno Co., Ltd. customers from overseas to easily visit our company, and is expected to facilitate active interaction with possesses a large department for section steel, is situated in the vicinity of our site, the center Japan’s only general thermal spraying processing ・JAPAN VAM & POVAL CO., LTD. them. Moreover, since many universities and research institutions are located in the neighborhood, offers comprehensive convenience. company Japan’s only Poval manufacturer open innovation can easily be promoted. Using this advantage, we will further accelerate research and We are very grateful for the generous support provided by Sakai City on the occasion of our development to become a major hub that creates new products for the future. factory relocation. (Selected from Nikkan Kogyo Shimbun’s Sakai’s Top 100 Companies and other sources)

7 8 Preferential treatment systems to promote establishment of new business facilities

*2: Examples of growth industry fields(For more details, please contact us.) Tax Reduction System for Promoting Investment in Sakai City ・ ICT-related field: Products and services utilizing advanced digital technologies, including AI, big data and the IoT, and robotics ・ Next-generation healthcare-related field: Pharmaceuticals, medical devices, long-term-care devices, welfare devices, and products and services related to health maintenance and enhancement Sakai City Ordinance for Promoting Innovative Investment ・ Environmental and energy-related field: New energy technologies, including fuel cells and storage batteries, and products and services related to environmental impact reduction and environmental improvement ・ Next-generation transportation-related field: Aircraft, drones, electric vehicles, autonomous vehicles, and products and services related to space A tax reduction system under this ordinance aims to attract new investment to sites suitable for manufacturing as well as urban business sites in order development to increase employment and business opportunities and contribute to the sustainable development of industries in Sakai City and improvement of ・ Disaster management-related field: Products and services related to disaster management, disaster risk reduction, and the provision and citizens’ lives. collection of information in the event of emergencies *3: Target areas are outlined by solid lines in the respective maps below. For details,please contact us. ■ Investment in sites suitable for manufacturing Urban area Nakamozu area Izumigaoka area 【Eligible investment projects】 Construction, extension or relocation of the following designated business facilities, etc.(buildings and their ancillary facilities below) ● Plants and offices(limited to those used for conducting business in the manufacturing, and information and communication industries) ● Research institutes and advanced logistics facilities*1(without industry limitations) *1: Advanced logistics facilities: Facilities with advanced logistics functions utilizing ICT, equipment for streamlining freight handling, distribution processing equipment, etc.

【Target areas】 Sakaihigashi Station ●Industrial zones ●Exclusive industrial zones ●Light industrial zones

【Subsidy details】 ●Fixed property tax (buildings, depreciable property) ●Urban planning tax (buildings) ●Business office tax (asset proportion) Contact Innovative Investment Promotion Office, Commerce, Industry and Labor Department, Industrial Maximum: 5 years Promotion Bureau, Sakai City TEL:+81 (0)72 228 7629 FAX:+81 (0)72 228 8816 Requirements Tax reduction rate Basic requirements Investment in fixed property: ●Small- and medium-sized business with an investment of ¥100 million or more Industrial Promotion Tax System ① ●Large business with an investment of ¥ 1 billion or more 1/2 *Investment in fixed property: Total amount of the cost of construction, extension or reconstruction of To promote industrial accumulation in Osaka Prefecture through the tax system, preferential measures are offered which reduce the real estate designated business facilities, etc. and the cost of acquisition of depreciable property for business use acquisition tax levied on purchases of land and buildings (factories, research institutions, etc.) in industrial promotion areas.

Head offices and/or research institutes of companies entering growth industry fields.*2 【Target businesses】 【Target real estate】 Requirement ① and condition A or B below must be met. Small- and medium-sized companies approved under Sakai City Buildings and land for plants, research facilities, and warehouses that ② A: Investment by a company that will enter a growth industry field, involving the relocation of the company’ s 2/3 Ordinance for Promoting Innovative Investment were purchased during the target period (until March 31, 2024) (Note: Such buildings must be located in the waterfront area or an head office from outside Sakai City 【Target zones】 B: Investment in the establishment of a research institute in a growth industry field area designated by the Port Management Body.) Industrial zones and exclusive industrial zones in Sakai City 【Amount of reduction】 ■Investment in urban business sites Half of the amount of real estate acquisition tax imposed on the purchase of the target real estate (Maximum:¥200million) 【Eligible investment projects】 Construction, extension or relocation of the following designated business facilities, etc. Contact International Business and Investment Division, Growth Industry Promotion Office, Department of Commerce, ●Offices and research institutes(without industry limitations) Industry and Labor, Osaka Prefectural Government TEL:+81 (0)6 6210 9406 FAX:+81 (0)6 6210 9296

【Target areas*3】 ●Urban area ●Nakamozu area ●Izumigaoka area Osaka Prefecture Investment Promotion Subsidy

【Subsidy details】 To complement the industrial development measures of Sakai City and facilitate investment and the establishment of new facilities by small- and medium-sized companies committed to maintaining a business presence in Osaka Prefecture, the Osaka Prefectural Government will cover part ●Fixed property tax(buildings, depreciable property) of the necessary costs incurred in constructing or reconstructing factories or research institutions. ●Urban planning tax(buildings) ●Business office tax(asset propotion) Maximum: 5 years 【Target businesses】 Small- and medium-sized companies that will construct, extend or reconstruct factories or R&D facilities Requirements Tax reduction rate 【Target facilities】 Basic requirements ① Factories and R&D facilities that are expected to be proved under Sakai City Ordinance for Promoting Innovative Investment Investment in fixed property: 1 billion or more ② R&D institutions in cutting-edge industries ① 1/2 (¥100 million or more in the case of the construction, extension or relocation from outside Sakai City 【Target areas】 of the head office and/or a research institute) ① Industrial zones and exclusive industrial zones in Sakai City ② Entire area of Sakai City Head offices and/or research institutes of companies entering growth industry fields in the urban area 【Subsidy details】 Requirement ① and condition A or B below must be met in the urban area. [Subsidy for investment] ② A: Investment by a company that will enter a growth industry field, involving the relocation of 2/3 5% of the costs incurred in building facilities and installing equipment (If headquarters, factories or research institutions are located the company’ s head office from outside Sakai City within the prefecture, 10% will be covered.) (Maximum: ¥30 million) B: Investment in the establishment of a research institute in a growth industry field *There are certain conditions that must be met: e.g. investment of ¥100 million or more required. [Subsidy for corporate enterprise tax] Investment in specified growth industry fields in the Nakamozu or Izumigaoka areas 50% of the amount of corporate enterprise tax levied on business activities for two years following the year when operations start Requirement ① and condition A or B below must be met. (Maximum: ¥20 million) ③ 3/4 A: Investment by a company that will operate in an ICT-related field in the Nakamozu area *To be eligible, companies must be granted the“subsidy for investment” mentioned above and meet the requirements. B: Investment by a company that will operate in a next-generation healthcare-related field in the Izumigaoka area Contact International Business and Investment Division, Growth Industry Promotion Office, Department of Commerce, Industry and Labor, Osaka Prefectural Government TEL:+81 (0)6 6210 9406 FAX:+81 (0)6 6210 9296

9 10 Subsidies for Investment Promotion in Sakai City

Sakai City Business Growth Promotion Subsidy Support under the Act on Special Measures for Productivity Improvement Subsidies are provided to cover part of the costs for investment in the improvement of a company’s headquarters and R&D facilities and the entrance of a manufacturer in the city into a growing industry field. (Combined application under Sakai City Ordinance for Promoting Innovative Approval of an Advanced Equipment Introduction Plan Investment.) ●When a company establishes its headquarters functions in an existing urban district: Sakai City is accepting applications for approval of an advanced equipment introduction plan formulated by SMEs. Companies that obtain the city’s 【Subsidy requirements】 approval for their advanced equipment introduction plans and fulfill certain requirements can receive support measures, including special measures concerning fixed property tax. ・The company must acquire or rent a facility used to establish its headquarters functions in an existing urban district in Sakai City as provided for in the Kinki Region Development Act (excluding districts on the west side of the left bank of the Ishizu River in the area on the west side of the JR 【Target businesses】 Hanwa Line). Businesses that fall under Paragraph 1, Article 2 of the Small and Medium-sized Enterprises Business Enhancement Act ・The target costs must be 20 million yen or more (10 million yen or more for SMEs), and the company must increase the number of full-time employees who live in the city by five or more (two or more for SMEs). Industry type Capital amount or total investment amount No. of full-time employees 【Subsidy details】 Manufacturing, etc. ¥300 million or less 300 people or less System Details Upper limit Wholesaling ¥100 million or less 100 people or less Subsidy for investment Target costs x 5% (10% for SMEs) ¥100 million Retailing ¥50 million or less 50 people or less No. of newly hired full-time employees living Subsidy for employment ¥50 million in the city x ¥0.2 million x 3 years Service ¥50 million or less 100 people or less

Rubber product manufacturing *1 ¥300 million or less ●When a company relocates its headquarters to Sakai City from another city: 900 people or less 【Subsidy requirements】 Software business / ¥300 million or less 300 people or less ・The company must possess a factory that serves as a production base in Sakai City; an affiliated company of the aforementioned company is also Information processing service eligible. 200 people or less ・The company must increase the number of full-time employees who live in the city by five or more (two or more for SMEs). business ¥50 million or less 【Subsidy details】 *1 Excluding the automotive and aircraft tire and tube manufacturing industry, and the industrial belt manufacturing industry System Details Upper limit 【Approval requirements】 No. of newly hired full-time employees living Requirements Details Subsidy for employment ¥50 million in the city x ¥0.2 million x 3 years Plan period 3, 4, or 5 years

Labor productivity improvement of 3% or more per year compared to the base year (the end of the ●When a company establishes an R&D facility in Sakai City: Goal on labor productivity 【Subsidy requirements】 latest business year) (9% or more for 3-year plans; 12% or more for 4-year plans; 15% or more for 5-year plans) ・The company must be mainly engaged in manufacturing. Equipment directly offered for production and sales activities in Sakai City as listed below Type of advanced ・The company must acquire, renovate or rent a facility used for research and development. ■ Types of depreciable property, etc. equipment, etc. Machinery and equipment, measurement and inspection tools, apparatuses and fixtures, ・The target costs must be one billion yen or more (10 million yen or more for SMEs). equipment attached to buildings, software, buildings for business use,*2 structures ・For large companies, target projects for subsidy must be conducted in areas suitable for the manufacturing industry (exclusive industrial areas, ・The plan must conform to the city’s basic plan for advanced equipment introduction promotion. *3 industrial areas, quasi-industrial areas) in existing urban districts as provided for in the Kinki Region Development Act. ・The introduction of advanced equipment must be expected to be implemented smoothly and steadily. Plan details 【Subsidy details】 ・The plan must be confirmed in advance by a certified management innovation support organization (a chamber of commerce and industry, etc.). System Details Upper limit *2 Limited to those that are acquired at a total price of ¥3 million or more and introduced together with advanced equipment, etc. Subsidy for investment Target costs x 5% (10% for SMEs) ¥100 million *3 In Sakai City’s basic plan for advanced equipment introduction promotion, plans aimed at personnel reduction are not eligible for approval.

No. of newly hired full-time employees living 【Support measures after approval】 Subsidy for employment ¥50 million in the city x ¥0.2 million x 3 years ■ Special measures concerning fixed property tax For companies that fulfill certain requirements, special measures are applied to allow them to be exempt from fixed property tax for advanced ●When a company enters a growing industry field: equipment acquired based on the approval plan for three years. For more information, please see the Special Measures concerning Machinery 【Subsidy requirements】 and Equipment Acquired based on the Advanced Equipment Introduction Plan on the city’s website. Companies with capital or investment of 100 million yen or less, and small-business owners with 1,000 or fewer employees ・The company must acquire, renovate or rent a facility used for business related to a growing industry field (environmental energy, health and Target (excluding subsidiaries of major companies) medical care, aircraft and linear motors, or disaster prevention) in Sakai City. businesses ・The company must be an SME mainly engaged in manufacturing. ● Equipment expected to contribute to increasing productivity at an average annual rate of 1% or more compared ・The target costs must be 50 million yen or more if incurred by factories used for manufacturing and by facilities used for research and to old models as listed below development, or 10 million or more if incurred by facilities used for research and development. ・Machinery and equipment (Minimum acquisition price: ¥1.6 million or more / Release period: within 10 years) * Regardless of the above, costs of 50 million yen or more if incurred by companies used for developing hydrogen stations are also eligible for the ・Measurement and inspection tools (Minimum acquisition price: ¥0.3 million or more / Release period: within 5 years) subsidy as the city’s special measures concerning growing industry fields are applied to. Target ・Apparatuses and fixtures (Minimum acquisition price: ¥0.3 million or more / Release period: within 6 years) equipment 【Subsidy details】 ・Equipment attached to buildings*4 (Minimum acquisition price: ¥0.6 million or more / Release period: within 14 years) ・Structures(Minimum acquisition price: ¥1.2 million / Release period: within 14 years) System Details Upper limit *4 For equipment attached to buildings, eligibility is limited to equipment taxed as depreciable assets. Subsidy for production factories Target costs x 5% ● Buildings for business use(Minimum acquisition price: ¥1.2 million) ¥100 million ・The equipment must be directly offered for product production and sales or service provision. Subsidy for R&D Target costs x 15% Other requirements ・The equipment must not be used assets. No. of newly hired full-time ・The equipment must be assets listed in the advanced equipment introduction plan. Subsidy for employment ¥50 million employees living in the city x ¥0.2 million x 3 years ■ Support for fund raising * Target costs for investment Regarding funding for implementing an approval plan, the relevant company may receive an additional guarantee from a credit guarantee 【Facility acquisition】 association or have its guarantee limit amount increased. For details, please contact the credit guarantee association. Costs related to the acquisition of buildings, equipment attached to buildings, structures and mechanical equipment ■ Preferential treatment related to government subsidies 【Facility rent】 The relevant company may receive preferential treatment, including receiving additional points in a screening process, related to government Costs related to building renovation and the acquisition of equipment attached to buildings, structures and mechanical equipment subsidies. For details, please refer to the application guidelines for each government subsidy.

Contact Innovative Investment Promotion Office, Commerce, Industry and Labor Department, Industrial Promotion Contact Innovative Investment Promotion Office, Commerce, Industry and Labor Department, Industrial Promotion Bureau, Sakai City TEL:+81 (0)72 228 7629 FAX:+81 (0)72 228 8816 Bureau, Sakai City TEL:+81 (0)72 228 7629 FAX:+81 (0)72 228 8816

11 12 Preferential treatment systems to promote establishment of new business facilities Tax Reduction System for Promoting Investment in Sakai City Subsidy for Promoting the Establishment of Offices

Preferential Tax System to Promote the Establishment of Regional Bases Part of the rent is subsidized when companies open new offices within the city’s designated area.

Under the national government’s Preferential Tax System to Promote the Establishment of Regional Bases, businesses located in areas designated in Osaka Prefecture’s Regional Revitalization Program are eligible for Sakai City Subsidy for Enhancing the Industrial Hub in the Urban Area tax breaks. 【Target areas】 Part of the rent is subsidized when businesses, etc.(corporations or individual business owners)newly open business facilities, etc. in the Areas designated in Osaka Prefecture’s Regional Revitalization Program target areas in the urban and other areas in Sakai City. (For quasi-regional vitality improvement areas, however, eligibility is limited to relocation.) 【Target businesses】 【Target businesses】 Businesses that satisfy all of the following three requirements: Businesses that will open business facilities, etc. and meet requirements A and B below(including foreign-affiliated businesses) ① Businesses that will relocate or expand their headquarters functions A: Business that will operate in any of the following industries defined in the Japan Standard Industrial Classification * Headquarters functions: offices (planning dept., etc.), research facilities, and training centers at the relevant business facility ② Businesses that will acquire buildings for headquarters functions in target areas (Investment of ¥20 million (1)Industrial support function: Industries of manufacturing; electricity, gas and heat supply; information and communication; or more; for SMEs, ¥10 million or more) transportation; wholesale; banking; insurance; etc. ③ Businesses that will increase the number of full-time employees working in headquarters functions by five (2)Intellectual property functions: Academic research; specialized and technical service industry people or more (for SMEs,t wo or more) (3)International function: Foreign diplomatic services (In the case of relocation, a majority (in the first year) and more than one-quarter (during the subsequent Regional vitality improvement areas planned period) of the increase in the number of employees must be from Tokyo’s 23 wards.) (4)Educational function: School education, etc. 【Subsidy details】 Quasi-regional vitality improvement areas * No industry limitations are imposed on businesses, etc. that are or were tenants of the Sakai Business Incubation Center or ●Subsidy for acquisition of facilities have received the Sakai City Subsidy for the Nakamozu Area Innovation Cluster.

[Relocation] [Expansion] B: Businesses that meet conditions(1)and(2)below Relocation from Central Tokyo (Tokyo’s 23 wards) Relocation from areas other than Central Tokyo, or expansion (1)The relevant business facility, etc. must have a total of 10 or more employees permanently working there. Subsidy rate: A 25% special depreciation or a 7% tax Subsidy rate: A 15% special depreciation or a 4% tax (2)The relevant business facility, etc. must have a total floor area of 100 m² or more. deduction for building/facility acquisition costs deduction for building/facility acquisition costs 【Target area】 ●Subsidy for employment Area outlined by the solid line in the map shown on the right, in the urban area of Sakai City ①A tax deduction of ¥500,000 per additional employee for specific business facilities during the company’s * Please contact us for details. business year (First year) [Relocation] ② In addition to ①, a tax deduction of ¥400,000* per additional employee for a specific regional office during Sakai the company’s business year, including employees who move to Sakai City from Central Tokyo(maximum: 3 years) Station * ¥300,000 in the case where specific business facilities are located in quasi-regional vitality improvement areas Sakaihigashi Station ① A tax deduction of maximum ¥300,000 per additional employee for specific business facilities during [Expansion] the company’s business year

* For details, please contact the following division of the Osaka Prefectural Government. Contact International Business and Investment Division, Growth Industry Promotion Office, Department of Commerce, Industry and Labor, Osaka Prefectural Government TEL:+81 (0)6 6210 9406 FAX:+81 (0)6 6210 9296

Preferential Tax System to Promote Regional Future Investment Sakai City aims to promote research and development and new investment in a growing industry field, thereby developing high value-added industries 【Subsidy details】 to expand employment and consumption and create a virtuous cycle of regional economy. To this end, the city has formulated the Basic Plan based on the Regional Future Investment Promotion Act in cooperation with Osaka Prefecture, under which businesses that draw up a regional economy advancement project and obtain approval from the governor of Osaka Prefecture are eligible for tax breaks if they fulfill certain requirements. Target cost Subsidy rate Maximum subsidy amount Subsidy period 【Approval requirements】A regional economy advancement project must satisfy all of the following three requirements: Rent for business facilities, etc. (1)Use of regional characteristics (excluding common service fees, etc.) Target cost × 30% ¥5 million 36 months The project must be related to any of the following three fields presented by Sakai City as priority fields to implement a strategy to use regional characteristics ( For details of each field, please refer to the Basic Plan based on the Regional Future Investment Promotion Act published on the website of Sakai City.) Special measures: 1. The growing manufacturing field, which focuses on industrial clusters in the metal product manufacturing industry and the production If condition(a),(b)or(c)below is met, the subsidy will be increased by 10%, provided that, machine and equipment manufacturing industry in the case where condition(a)is met, the maximum subsidy amount shall be ¥15 million. 2. The environmental and energy field, which focuses on industrial clusters in the low-carbon and energy industry (a)Relocation of the head office function 3. The health, medical and nursing care field, which focuses on industrial clusters in the medical and welfare sectors (2) Increased Value Added (b)Foreign affiliated businesses (c)Foreign diplomatic services The increase in Value Added is expected to exceed 61.61 million yen through the implementation of a regional economy advancement Special measure(a)applies when all of requirements A to E below are met, instead of the requirements shown above. project throughout the planned project period. However, since this is supposed to apply to a five-year project, the expected increase in Value Added will vary depending on the period of the plan. A: Business that will relocate its head office or its head office function from outside Sakai City (3)Economic effects on local businesses B: Business that mainly operates in any industry other than the following industries: Any of the following effects must be expected to occur through the implementation of a regional economy advancement project throughout ① Amusement business that requires permission as defined in Article 3 of the Act on Control and the planned project period. Improvement of Amusement Business, etc.(Act No. 122 of 1948) ・The number of employees involved in the regional economy advancement project must increase by 1% or more compared to the fiscal year when the project is launched. ② The following industries in the Japan Standard Industrial Classification ・The sales amount involved in the regional economy advancement project must increase by 7% or more compared to the fiscal year when ・ Amusement services among“N: Living-related and personal services and amusement services” the project is launched. ・ Postal services among“Q: Compound services” 【Main support measures after approval】 ・ Political, business and cultural organizations, religion, and foreign governments in Japan among ① Preferential treatment on corporate tax, including tax breaks for advanced capital investment “R: Services, not elsewhere classified” ② Preferential treatment related to government subsidies, including the provision of additional points in a screening process (For details, please ・ Industries designated among“S: Government, except elsewhere classified” refer to the website information on the relevant subsidies.) C: Business that has 30 or more employees 【Application procedures】 D: The total floor area of the subsidized part of the relevant business facilities, etc. must be 100 m² or more. For details on application for a regional economy advancement project, please contact the following division of the Osaka Prefectural Government. E: There must be no significant decline in the number of employees engaged in the head office function compared with Enquiry regarding applicationand and For other enquiries the number before relocation. International Business and Investment Division, Growth Industry Promotion Office, Department of Commerce, Industry and Labor, Osaka Prefectural Government TEL:+81 (0)6 6210 9406 FAX:+81 (0)6 6210 9296 Contact Innovative Investment Promotion Office, Commerce, Industry and Labor Department,Industrial Promotion Bureau, Sakai City Innovative Investment Promotion Office, Commerce, Industry and Labor Department, Industrial Promotion TEL:+81 (0)72 228 7629 FAX:+81 (0)72 228 8816 Bureau, Sakai City TEL:+81 (0)72 228 7629 FAX:+81 (0)2 228 8816

13 14 Preferential Treatment Systems

Sakai City Subsidy for the Nakamozu Area Innovation Cluster Sakai City Subsidy for Facilitating the Concentration of Next-generation Healthcare Businesses Part of the relevant expenses is subsidized when ICT-related businesses or startups open business facilities, etc. in the target area in the in the Izumigaoka Area district around Nakamozu Station in Sakai City or when businesses, etc. open flexible offices(offices for temporary rental or for service use, Part of the rent is subsidized when businesses, etc. newly open business facilities, etc. for the operation of a next-generation healthcare including co-working spaces, shared office spaces, mobile work office spaces, and serviced office spaces)in the same area. business in the target area around Izumigaoka Station in Sakai City. 【Target businesses】 【Target businesses】 (1)Businesses(corporations or limited liability partnerships)that will open business facilities, etc. and meet requirements A and B below A: Business that has newly rented a business facility, etc. with a floor area of 20 m² or more in the target area Businesses(corporations or limited liability partnerships)that will open business facilities, etc. and meet all of requirements A to C below B: Business whose operations at the relevant business facility, etc. meets any of conditions ① to ⑤ below A: Business that has newly rented a business facility, etc. with a total floor area of 50 m² or more ① Business for which the special measure for ICT-related businesses(including businesses that operate in the information service B: Business that has a total of 5 or more permanent employees industry or the Internet-ancillary service industry or in providing products or services utilizing advanced digital technology or robotics) C: Business that will conduct any type of business covered by ① to ③ below at the relevant business facility, etc.* is applied ① Business providing pharmaceuticals, medical devices and/or related products or services ② Business that is or was a tenant of the Sakai Business Incubation Center ② Business providing long-term-care devices, welfare devices and/or related products or services ③ Startup that is not more than 10 years old as a corporation and has achieved remarkable growth with net sales of over ¥10 million ③ Business providing products or services for health maintenance and enhancement for the past three terms and with an annual net sales growth rate of 20% or higher in the past two consecutive years * Excluding commercial facilities(recreation facilities, restaurants, retailers, consumer service providers, ④ Business that is funded by venture capital or the like with ¥5 million or more through equity financing and other facilities attracting individual customers), medical institutions, welfare facilities, and other similar businesses ⑤ Business that commercializes technological seeds based on research results produced by university faculty members and researchers 【Target area】 Izumigaoka (2)Businesses that will establish flexible offices and meet condition A or B below Area outlined by the solid line on the map shown on the right, Station A: Business that will establish a flexible office by renting a building that includes in the Izumigaoka Station area of Sakai City the subsidized part with a total floor area of 100 m² or more in the target area * Please contact us for details. Nakamozu B: Business that will establish a flexible office by acquiring a building that includes Station the subsidized part with a total floor area of 100 m² or more in the target area

【Target area】 Area outlined by the solid line on the map shown on the right, in the Nakamozu area of Sakai City * Please contact us for details. 【Subsidy details】

Target cost Subsidy rate Maximum subsidy amount Subsidy period Osaka Prefecture Rent for business facilities, etc. University (excluding common service fees, etc.) Target cost × 30% ¥5 million 36 months

【Subsidy details】 Special measures: If condition(a)or(b)below is met, the subsidy will be increased by 10%, provided that, ○Eligible businesses that fall under(1) in the case where condition(a)is met, the maximum subsidy amount shall be ¥15 million. Target cost Subsidy rate Maximum subsidy amount Subsidy period (a)Relocation of the head office function (b)Foreign affiliated businesses 1st year: target cost × 50% Rent for business facilities, etc. 2nd year: target cost × 40% ¥5 million 36 months (excluding common service fees, etc.) 3rd year: target cost × 30% Contact Innovative Investment Promotion Office, Commerce, Industry and Labor Department, Industrial Promotion

Special measures: Bureau, Sakai City TEL:+81 (0)72 228 7629 FAX:+81 (0)72 228 8816 If condition(a),(b)or(c)below is met, the annual subsidy will be increased by 10%, provided that, in the case where condition (a)is met, the maximum subsidy amount shall be ¥15 million. (a)ICT-related businesses (b)Seeds at Osaka Prefecture University (c)Foreign affiliated businesses * Regardless of the above, the subsidy rate for businesses that receive any of the following subsidies is 30% of the target cost. ● Sakai City Subsidy for Enhancing the Industrial Hub in the Urban Area(Urban Office Investment Promotion Subsidy) Sakai Grand Design 2040 ● Sakai City Subsidy for Facilitating the Concentration of Next-generation Healthcare Businesses in the Izumigaoka Area (Semboku New Town Office Investment Promotion Subsidy ) ● Sakai City Subsidy for Incubation Facility Tenants Toward an Excellent City for Visitors, Workers, and Prospective and Current Residents ○Eligible businesses that fall under(2)A To share a future vision of continuous growth for Sakai City 20 years from now, a project Target cost Subsidy rate Maximum subsidy amount Subsidy period team formed by young and middle-ranking staff of the Sakai City government has 1st year: target cost × 50% Rent for business facilities, etc. 2nd year: target cost × 40% ¥15 million 36 months formulated Sakai Grand Design 2040. (excluding common service fees, etc.) 3rd year: target cost × 30%

Building improvement cost target cost × 10% ¥5 million At the time of establishment

○Eligible businesses that fall under(2)B Target cost Subsidy rate Maximum subsidy amount:

Costs of acquiring a building, equipment installed in the building, structures and/or machinery, etc., and building improvement costs target cost × 10% ¥20 million

Hub for dynamic exchanges Area as an incubator of new Next-generation New Town that mixes Contact Innovative Investment Promotion Office, Commerce, Industry and Labor Department, Industrial Promotion industries and startups various facilities and joyful activities Bureau, Sakai City TEL:+81 (0)72 228 7629 FAX:+81 (0)72 228 8816

15 16 Preferential treatment Topic Sakai City Traditional Crafts Museum This museum showcases the wide range of traditional industries Sakai boasts: knives and systems to promote scissors, incense, chusen hand-dyed yukata, rugs, kelp food products, bicycles, carp streamers, Support for Companies Deeply Rooted in Local Communities in Sakai City traditional Japanese confectionery, etc. The facility establishment of houses the Sakai Knife Museum and a shop for Sakai-made products. In addition, various hands-on Support for Manufacturing Companies new business facilities learning and other events are held for visitors. ■ New Manufacturing Business Grant * The application period is limited. Sakai City provides a subsidy to cover part of the necessary costs for SMEs that endeavor to create high value-added products and technologies or advance into new business fields. 【Target businesses】SMEs in Sakai City 【Target projects】Development of new product/technology promoted mainly by an SME located in Sakai City(including improvement of an existing product or technology) Subsidy for Constructing Rental Office Buildings 【Subsidy details】Up to 50% of the cost eligible for the subsidy per year(upper limit: ¥5.0 million) ■ Smart Manufacturing Introduction Support Subsidy Sakai City Subsidy for Facilitating the Construction of Rental Office Buildings Subsidies are granted to businesses that plan to introduce the IoT, AI and/or robots to solve labor shortages and enhance their competitiveness by increasing productivity in the manufacturing process. This subsidy system aims to facilitate the provision of attractive offices and consequently the concentration of business functions in order 【Target businesses】Small and medium-sized businesses in Sakai City that are considering introducing the IoT, AI and/or robots to enhance the appeal of Sakai City, create employment, and promote the industries of Sakai City. 【Subsidy details】Up to 50% of the cost of IoT and/or AI equipment and outsourcing costs(maximum amount: ¥500,000) In the case of the introduction of robots or the introduction of the IoT and AI together with robots, up to 50% of the equipment costs and 【Target businesses】 outsourcing costs(maximum amount: ¥1.5 million) Businesses that meet all of requirements(1)to(5)below ■ Support Program for Promoting Second Startups (1)Business that newly builds or rebuilds a rental office building in any of the target areas Sakai City supports young entrepreneurs who will lead the next generation in developing business models for creating new businesses(second startups) (2)Rental office building with a total floor area of 3,000 m² or more in the urban area or 1,500 m² or more in the Nakamozu 【Target businesses】Young entrepreneurs of manufacturing SMEs 【Subsidy details】Support in developing business models for second startups or Izumigaoka area (3)The total floor area of the part designed for use as rental offices, etc.*(hereinafter,“the subsidized floor area”) * For details, contact the division shown below. must account for 50% or more of the total floor area of the rental office building. Contact (This will not apply if the total subsidized floor area is 1,500 m² or more.) Manufacturing Support Division, Commerce, Industry and Labor Department, Industrial Promotion Bureau, (4)Rental office building with an area of 300 m² or more for each floor Sakai City TEL:+81(0)72 228 7534 FAX:+81(0)72 228 8816 (5)Business that have not received the Sakai City Subsidy for the Nakamozu Area Innovation Cluster for the relevant rental office building * Rental offices, etc.: Areas in the building that fall under(a)or(b)below (a)Areas to be rented as offices or research institutes of companies, etc.(excluding housing, commercial facilities, Sakai City Work Environment Improvement Support Subsidy for Women Employment Promotion medical institutions, welfare facilities, etc.) (b)Areas to be used or rented as flexible offices(including co-working spaces and shared office spaces), rental meeting rooms, Part of the relevant costs are subsidized to SMEs in Sakai City involved in work environment improvement with the aim of promoting female conference rooms, event and seminar spaces or exhibition and demonstration spaces employment and labor force participation. 【Target areas】 【Target businesses】 ●Urban area ●Nakamozu area ●Izumigaoka area SMEs in Sakai City (required to engage in business in the city for at least one year) * There are other conditions to be met. * Please contact us for details. 【Target projects】 ① Installation or improvement of facilities for women (restrooms, shower rooms, changing rooms, lounges) provided exclusively to female employees 【Subsidy details】 ② Safety measures for female employment Target cost × up to 10%(maximum amount: ¥200 million) 【Subsidy amount】 《Target costs》 Up to half of the costs related to facility installation or improvement (upper limit: ¥500,000) Of the costs of constructing or rebuilding a rental office building, the costs of acquiring the building, equipment installed in the building, structures, and/or machinery (* Excluding the costs of surveying, creating and acquiring the land, and paying taxes and other public charges, Contact Employment Promotion Division, Commerce, Industry and Labor Department, Industrial Promotion Bureau, consumption tax and local consumption tax) Sakai City TEL:+81 (0)72 228 7629 FAX:+81 (0)72 228 8816 (* Excluding costs incurred for areas other than rental offices, etc. in the building) (* Excluding costs covered by subsidies from the Japanese government and other local governments)

【Application deadline】 Day of issuance of the building confirmation certificate Financial Support Systems for Promoting Investment in Sakai City Interest Subsidies for Promoting Local Revitalization (Local Revitalization Act) Contact Innovative Investment Promotion Office, Commerce, Industry and Labor Department, Industrial Promotion The national government provides interest subsidies within the limits of the budget to business operators engaged in businesses mentioned in the Bureau, Sakai City TEL:+81 (0)72 228 7629 FAX:+81 (0)72 228 8816 Economic Revitalization Plan for Specific Areas, in cases where they receive a loan from a bank designated by the Prime Minister.

Contact Policy Planning Department(Advanced Projects), Sakai City Mayor’s Office TEL:+81 (0)72 228 7480 FAX:+81 (0)72 222 9694 Relaxation of Factory Green Area Regulations Sakai City Financing Systems for SMEs Local Ordinance in Accordance with the Factory Location Act There are financing systems that provide SMEs with the funds necessary to make capital investment in Sakai City. The factory green area ratio requirement has been significantly reduced to promote investment by companies. Sakai City Loans to Support Capital Investment by SMEs (unsecured) (municipal cooperation type) Before relaxation After relaxation ●Loan amount: up to ¥80 million ● Period: up to 10 years ●Interest rate: -0.1% from the interest rate(up to 1.2% per year)prescribed by the financial institution(fixed rate)● Guarantee: Credit Guarantee Corporation of Osaka ● Credit guarantee fee: prescribed by Credit Guarantee Corporation of Osaka Exclusive manufacturing zone/ Manufacturing zone 10% (15%) or more 20% (25%) or more Sakai City Loans to Support the Revitalization of SMEs (secured) Light manufacturing zone 15% (20%) or more ● Loan amount: up to ¥50 million ・Period: up to 10 years for capital investment ● Interest rate: 1.4% per year (1.0% for loans related to IoT/IT technology ※( ) indicates the required percentage of environmental facility areas including green areas. introduction as preferential treatment) ● Guarantee: Sakai City Industrial Promotion Center ● Credit guarantee fee: no need to bear, in principle(borne by Sakai City)

Contact Innovative Investment Promotion Office, Commerce, Industry and Labor Department, Industrial Promotion Contact Financial Support Division, Sakai City Industrial Promotion Center Bureau, Sakai City TEL:+81 (0)72 228 7629 FAX:+81 (0)72 228 8816 TEL:+81 (0)72 255 8484 FAX:+81 (0)72 255 5162

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