Fulfilling Lifestyle

1 Open, Individual Local Communities Comments about business life in Hokkaido from companies that have Enjoy a relaxed, comfortable ■Comparison of average commuting times (2016) ■Number of general hospitals and numbers of doctors (Unit: Minutes) and nurses (2016) (per 100,000 residents) expanded here from outside Hokkaido new life 020 40 60 80 100 120 Hokkaido 57 (facility) (persons) Miyagi Here are some thoughts on life in Hokkaido from companies that have expanded here 70 12 1,151.4 1,200 Land is relatively cheap in Hokkaido, and many people take the opportunity Chiba 94 Number of general hospitals (facilities) from outside Hokkaido. Tokyo 90 10.5 Number of doctors (persons) to buy a comfortably large family home close to Hokkaido’s abundant Kanagawa 100 Number of nurses (persons) 10 1,000 nature. Commute times to workplaces and schools are relatively short, and Gifu 66 922.4 “There are few natural Aichi 72 905.5 you can enjoy a more relaxed pace of daily life. There are also large parks Mie 67 821.4 831.6 disasters, and my and convenience stores nearby and an abundance of hospitals to make Kyoto 76 8 768.8 777.8 800 Osaka 78 6.7 employees were very your life comfortable. 6.3 Hyogo 83 6.0 5.9 Fukuoka 67 6 600 satisfied with their ■Average price of residential land (2018) (unit: yen per ㎡) 4.8 *Average commuting time (Source: Ministry of Internal Affairs and Communications) 4.3 experiences of winter here.” 2 （Yen/m ） 1,952,348 4 400 400,000 304.2 354,600 270.4 (Hervé Le Hen, Executive Officer and COO, ■Population according to Basic 238.3 231.9 242.4 240.1 350,000 207.7 AXA Life Insurance Co., Ltd.) Resident Register (January 1, 2018) 2 200 300,000 34,834 I chose Sapporo in Hokkaido after 250,000 Wakkanai 0 0 researching areas all over Japan. My 200,000 177,800 Hokkaido Miyagi Tokyo Aichi Osaka Hyogo Nationwide 149,200 biggest reason for choosing Sapporo 150,000 (Source: Ministry of Health, Labour and Welfare) 101,500 107,000 102,300 was because there are not many natural disasters. Sapporo has fewer earthquakes and 100,000 73,500 typhoons than Honshu and Kyushu, and the snow doesn't cause many issues either. 38,600 33,400 49,500 50,000 19,000 29,100 Another crucial point is the source of employees that this city provides. 0 Sunset at Ougon Misaki in Rumoi We signed an agreement with local companies ensuring that if there is a natural disaster in a a u e a o Miyagi Chib Tokyo Gif Aichi Mi Kyoto Osak Hyog Hokkaido Kanagaw Fukuoka Tokyo and all operations need to be carried out in Sapporo, we will be able to secure (Source: Ministry of Land, Infrastructure, Transport and Tourism) housing and everyday items for employees who travel from Tokyo to Sapporo to provide ■Rent for private rental homes (2017) (per 3.3㎡ per month) backup. The employees who were transferred from Tokyo seemed to be concerned about the cold winter at first, but they were very satisfied with their experiences of winter here. (yen) 340,211 10,000 Their commutes are short, making work-life balance easy, and the working environment is 8,562 21,757 very good. The commute in Tokyo can be up to two hours. 8,000 Drift ice, Abashiri 6,983 Odori Park, Sapporo Rumoi 5,892 5,692 6,000 36,322 4,989 4,919 5,278 118,787 4,547 69,521 3,709 4,193 I now understand the story 4,000 3,592 3,710 Asahikawa Abashiri Eniwa 82,823 Kitami of the company employee 2,000 118,948 16,432 58,502 who cried when he was 0 Otaru Iwamizawa transferred to Hokkaido and Miyagi Chiba Tokyo Gifu Aichi Mie Kyoto Osaka Hyogo Kutchan Hokkaido Kanagawa Fukuoka (Source: Ministry of Internal Affairs and Communications: Statistical Observations of Prefectures) Ishikari 96,841 Sapporo 172,391 then cried when he had to 167,653 26,399 leave. Nemuro Proposal for Summer Offices Chitose 172,373 (Masakazu Sugimoto, former President, utilizing Hokkaido's pleasant climate Tomakomai Kushiro Denso Hokkaido Corporation, now Hokkaido 85,807 Obihiro Manufacturing Industry Advisor) Escape the heat and stress of the city and spend the summer doing As expected, we managed to find business in Hokkaido's cool, pleasant climate. A new working lifestyle has Muroran 23,011 highly motivated and skilled been proposed in Japan, making use of the pleasant summer climate. A employees. The employees we hired here are earnest and determined, and our female 262,519 new working lifestyle has been proposed in Japan, making use of the 7,895 Shinhidaka employees in particular are very strong-willed. I remember the story of the company pleasant summer climate. Esashi 12,617 employee who cried when he was transferred to Hokkaido because he didn't want to go, Kushiro Marsh, Kushiro <3) Everyday business type> <4) Special purpose type> Urakawa then cried when he was transferred back home a few years later because he didn't want to Category (for conducting everyday business such (to be used for employee retreats or employee Hakodate leave. I now understand why. as head office operations in Hokkaido) training in Hokkaido when creating new projects) <1) City type> Companies that already have a base in Companies can conduct employee retreats or Row of cherry blossom trees, (to be used in Hokkaido can make use of this base and training for new projects in a different send employees from their head office to Shizunai Nijukken Road, Shinhidaka If you love the outdoors, major cities in location from employees' usual surroundings. their summer office during the summer *Both the city type and resort type have ■ Leisure and sports facilities and Hokkaido) (IT companies, etc.) there's no better place ■Furnished apartments potential for this purpose. (All companies.) Hakodate nightscape Hakusen Waterfall, Eniwa accommodation facilities ■House rentals ■Resort hotels than Hokkaido. ■Condominiums ■Total Area of City Parks (End of FY2016) (Per capita) Camp sites 226 No.1 nationwide Aquariums 10 No.1 nationwide ■Public training facilities 2 (Keiji Inagawa, former President, （Unit: m ） Golf courses 146 No. 3 nationwide Museums 240 No. 2 nationwide 0 5 10 15 2025 30 35 40 Muroran Togo Corporation) Zoos and Ski grounds 29 No. 3 nationwide 48 No.1 nationwide Hokkaido 38.8 botanical gardens Muroran is very easy to get to and from. Swimming <2) Resort type> Self-employed people can carry out their 47 No. 8 nationwide Parks 366 No.1 nationwide It's even possible to fly to our head Miyagi 23.5 beaches (to be used in day-to-day business at a resort with a great atmosphere (self-employed people, office in Togo, Aichi, work there for 5-6 resorts in Skating rink 33 No.1 nationwide Hot springs 245 No.1 nationwide creators, etc.) Tokyo 7.4 Hokkaido) hours and then fly back without having ■Teleworking Cycling 30 No.1 nationwide Hotels 673 No. 2 nationwide ■Short-term accommodation Aichi 8.0 courses to stay the night. As someone who likes

Theme parks the outdoors, it's great being able to Osaka 5.7 Japanese- and recreation 20 No. 4 nationwide 2,218 No. 3 nationwide style inns enjoy activities like golfing, kayaking and mountaineering in my free time. A game at a centers Fukuoka 9.1 reasonably priced golf course here is a third of the price of a game in Aichi. (Source: Suuji de Miru Kanko (Tourism in Numbers) 2018 Edition, Japan Travel (Source: Current State of City Parks, etc., Ministry of Land, Infrastructure, Transport and Tourism) And Tourism Association)

14 BUSINESS LOCATION GUIDEBOOK HOKKAIDO BUSINESS LOCATION GUIDEBOOK HOKKAIDO 15 Data Centers

2 The Perfect Environment for Living and Working Data Centers ‒ Taking Full Advantage of the Cool Climate

■Attractiveness Ranking of Prefectures and Cities in Japan (2018) Comfortable Summer Climate Dramatically Reduced Air Conditioning Costs through the Use of Snow and Ice Energy and Cool Air Ranking Prefecture Municipal Government(s) Hokkaido has very pleasant summer weather, with very few hot days (Over 30℃) or 1 Hokkaido Hakodate extremely hot days (Over 35℃). As the demand for data centers continues to expand rapidly, there are increasing concerns for the amount of power consumed. It is said that 40% of the power used by data centers 2 Kyoto Kyoto ■Number of Hot Days/Extremely Hot Days is for air conditioning, and this consumption needs to be drastically reduced. Hokkaido is gaining a great deal of attention as an ideal location for companies that need to reduce air 3 Tokyo Sapporo (Average from 1981 to 2010 (30 Years)) conditioning power consumption because of its naturally cool temperatures, and it is being actively promoted to companies looking to relocate their facilities. 4 Okinawa Otaru (Day) ■Reductions in air conditioning power consumption and CO2 levels through the use of outdoor air, 80.0 5 Kanagawa Kobe Hot day (over 30℃) 73.2 free cooling, and snow and ice (estimation) Extremely hot day (over 35℃) 70.0 6 Nara Yokohama 64.3 100 60.0 57.1 7 Osaka Furano 80 69.0% 64.5% 89.8% 89.9% 50.0 48.5 8 Fukuoka Kamakura power reduction in power reduction in 60 CO emissions CO emissions 40.0 Power CO reduction 2 reduction 2 9 2 Nagano Kanazawa consumption emissions 30.0 (Prerequisites) 40 10 Nagasaki Sendai Number of server racks: 17.9 20.0 2,000 racks 20 (Source:“Research of Regional Brands 2018” Brand Research Institute, Inc.) 11.5 11.6 10.0 8.0 Power capacity: 5kVA per rack 3.2 5.5 0 0.1 0.6 0.0 Tokyo Sapporo Sapporo Nature With Four Distinct Seasons Sapporo Sendai Tokyo Nagoya Osaka Fukuoka (General air conditioning) (Outdoor air and free cooling) (Outdoor air, free cooling, and snow and ice) (Source: Japan Meteorological Agency) * Values estimated by the Hokkaido GEDC Study Group Spring in Hokkaido begins with beautiful cherry blossoms and gets fully underway with profusions of a variety of other flowers. The other seasons are just as distinct, with clear A Substantial Snow Clearing skies in summer, colorful leaves in autumn and silvery white landscapes in winter. System and Cold Resistant Houses A Prime Location for Risk ■Temperature: minimum and maximum of the average Stable Communications Infrastructure monthly temperature Average from 1981 to 2010 Because Hokkaido has a thorough snow clearing Dispersion and as a Backup Center (30 Years) system for roads, airports and railways, snow is no （℃） 28.8 obstacle to distribution in winter. Comfortable Many companies, such as SAKURA Internet Inc., NEC and NTT COMWARE There is a substantial communication infrastructure already in place between the 30 27.4 27.8 28.1 living is ensured in homes built to withstand Corporation, have relocated their data centers to Hokkaido. Hokkaido provides such Tokyo metropolitan area and Hokkaido, operated by multiple carriers through 24.2 25 snow accumulation and cold weather. benefits as controlled power consumption through the use of the cold climate, multiple routes. There are also plans to further reinforce backbone redundancy and 22.3 22.0 21.1 20.3 excellent access to the mainland of Japan, and low risk of a disaster occurring in diversify communications infrastructure between Hokkaido and the mainland, 20 18.0 ■Snow Accumulation: Greatest Depth of Accumulated Snow both Hokkaido and regions such as the Tokyo metropolitan area at the same time, Honshu. All of the main business areas in Hokkaido including Sapporo, Ishikari, 15 (Average from 1981 to 2010 (30 Years)) all of which are gathering a great deal of attention as the ideal location for data Chitose, Tomakomai, Sorachi and Asahikawa are fully equipped with the necessary （cm） centers. backbone lines. 10 120 111 100 5 94 6.1 6.0 6.6 90 0 4.5 1.6 60 -7.5 45 Realization of a low-energy consumption data center through the use of Hokkaido’s cool climate -5 -2.6 38 36 -3.6 -3.8 30 28 Opening of a large-scale suburban data center that takes advantage of scale merits of the land size -5.4 20 -10 17 Sapporo Hakodate Kushiro Tokyo Osaka 6 SAKURA Internet Inc. (Head office: Osaka) 0 Tomakomai Asahikawa Sendai Nagoya Fukuoka Sapporo Tomakomai Hakodate Asahikawa Kushiro Aomori Sendai Niigata Tokyo Matsue SAKURA Internet Inc., which has the largest backbone network in Japan and operates internet data centers, open a new suburban large-scale data center called the “Ishikari Data (Source: Japan Meteorological Agency) (Source: Japan Meteorological Agency) ■99.6% Snow Clearance Rate of the Roads in Center” in the Ishikari Bay New Port Area in November 2011. Low Humidity, Clean Refreshing Air Hokkaido (As of April 1, 2018) The Ishikari Data Center features improved energy efficiency by adopting outdoor air conditioning and harnessing the advantages of its considerable size. With the total adoption of outdoor air conditioning that utilizes the cool climate of Hokkaido, the cost for air conditioning to cool the data center servers has been reduced by 90%. Hokkaido is a large place, and cars are an essential means of transport. Hokkaido has Hokkaido has an extremely pleasant climate, with no rainy season and low humidity PUE*, an energy efficiency indicator for data centers, has been decreased to 1.11 simply through using outdoor air conditioning throughout the year. 6,785km of national highways, and has a snow clearance rate of 99.6%, with only - the perfect location for biotechnology- or IT-related companies. The company aims to make the data center even more energy efficient by using heat generated by the servers in heating offices and some of the roads near the center during the one 24 km road that cannot be cleared. winter. ■Average Discomfort Days Total length: A third building was built in December 2016 with a new, efficient style of air conditioning, and the final plan is for the data center to consist of five buildings with up to 6,800 racks. Length with snow removal 6,785km 99.6% (Average Discomfort Index of Over 75 from 1961 to 1990 (30 Years)) 6,809km The company will make the most of the abundance of land in Hokkaido to build a data center around 1.1 times the size of the Tokyo Dome, with a high level of expandability and Length not cost performance. (Day) Fukuoka cleared of snow 30 Talking of future prospects, President and CEO Kunihiro Tanaka says, “it is said that the cost of data centers in Japan is double that of advanced data centers overseas. Osaka 1 road 24km 0.4% We built the Ishikari Data Center to reduce costs by half, and to provide customers with a service that delivers a high level of cost performance.” 25 Nagoya (Source: Hokkaido Regional *PUE (Power Usage Effectiveness) indicates the energy efficiency of a data center. The closer the value is to 1.0, the more efficient the data center is. Generally, values lower than 2.0 show a good level of efficiency. Tokyo Development Bureau) 20 Sendai Roads are efficiently cleaned of 15 Sapporo snow during the snowfall season ■Winter Roads are Safe to 10 Walk on with Winter Shoes

5 To walk safely and comfortably in the snow, it is Kunihiro Tanaka, very important to wear shoes with the right kind President and CEO 0 of sole. In Hokkaido, we have excellent winter of SAKURA Internet Inc. June July August September shoes that are made for walking on the snow and Ishikari Data Center Building 3, built by SAKURA Internet Inc. in Ishikari City in December 2016 (Source:“Science Chronology” from the National Astronomical Observatory) ice. Summer shoes Winter shoes

16 BUSINESS LOCATION GUIDEBOOK HOKKAIDO BUSINESS LOCATION GUIDEBOOK HOKKAIDO 17