J APAN A new : globally oriented As Japan hosts the 42nd G7 on 26-27 May, the “Abenomics has improved the circula- “The growth of our stock prices has country will be eager to show the international com- tion of the domestic business market been significant. We were able to achieve munity how – following the impetus of Prime Minister as well, and the effect of the weakening an equity finance of 100 billion yen ($845 yen has increased Japanese exports.” million), which is something absolutely Shinzo Abe’s so called ‘Abenomics’ – it is finally em- Nobuyoshi Fujisawa, President and unthinkable for a company of our scale. bracing globalization and becoming more open than CEO of J Trust Group, a financial services Thanks to this, we were able to get our ever before. It is a mindset supported by a new wave provider with activity throughout South- hands on funds that allowed us to pre- of outward-looking Japanese companies striving to east Asia, says that thanks to the govern- pare for further global operations. It was seize opportunities abroad and develop the brand of ment’s economic strategy the group’s all a direct benefit of Abenomics.” stock prices have shot through the roof this new Japan through their products and services. and created the conditions for the compa- Finance - The driving force ny to go global. “It created a very rapid rise behind Abenomics Since Prime Minister Shinzo Abe came companies have seized the opportu- in stock prices and a significant weakening Companies like Mitsubishi UFJ Financial to power in 2012, launching his epony- nity and begun to expand abroad. As of the yen. These two things happened Group (MUFG) have introduced U.S.- mous economic strategy ‘Abenomics’, the the country prepares to host the 42nd G7 in a very short period. Within two years, style management structures and hired country has submitted itself to a modern Summit in May, gathering an elite group stock values doubled and the yen weak- international directors. Nobuyuki Hirano, makeover ― and not a moment too of the globe’s biggest economies at one ened to two-thirds of what it was. This had the President and Group CEO, says Ja- soon, say the country’s top bankers and of the world’s most important geopolitical a huge impact on Japan,” he says. pan’s financial industries are a mirror businessmen. In fact, weighed down events, participants and global observers by two decades of deflation, Japanese should prepare themselves to revise their industry leaders have happily embraced views. The message will be clear: this is Evolution of the Japanese economy this internationalization push. Indeed a new, more open, more international- many argue it was long overdue. minded Japan ready to come of age and 540 Prime Minister Abe’s plan has been finally grab globalization with two arms. radical but effective: spend money Hirokazu Onoe, President of GLORY, ($100 billion), increase stimulus and a global leader in the manufacturing of 520 improve business friendliness. But this money handling machines and systems, shift has been as much a change in glob- explains how this new outlook has 500 al mentality for the Japanese as a shift in washed over Japan’s private sector. globally oriented economic policies. “Abenomics was an attempt of A massive bond-buying program by Prime Minister Abe to take Japan out of 480 the Bank of Japan saw the yen plum- the economic crisis. I believe the strate- met and domestic debt levels soar. But gy really matched the needs of the busi- lo and behold, Japanese exports have ness community and provided various 460 since boomed, unemployment dramati- opportunities for Japanese businesses.” 2006 2008 2010 2012 2014 Trillion cally decreased and wages have gone up Mr. Onoe also duly points out that Constant prices Current prices yen for the first time in two decades, while a in 2014 many Japanese corporations new wave of outward-looking Japanese posted their best financial results ever. Source: Thomson Reuters Datastream, Jan 2016 that reflect the national economy. “In that The third arrow sense, in the past two and a half years All well and good, says Masayuki Oku, since the inauguration of Prime Min- Chairman of Sumitomo Mitsui Financial ister Abe, we have felt the significantly Group, but is it sustainable? He says that positive impact of the implementation of all depends on how the Prime Minister Abenomics and witnessed a quite visible shoots the third arrow from his quiver ― change in the private sector.” his growth strategy. “Business has become Mr. Hirano says that over the past two very active and corporate performance has decades, business leaders were conserva- registered record breaking profits. Wages tive in the face of the deflationary environ- have increased and we have near perfect ment. They reshaped their balance sheets employment. A full exit from the deflation by streamlining excessive manpower, pro- that has plagued us for the past 20 years duction facilities and debt levels. In short, is nearly at hand. But the question is if it is they moved from a growth-oriented stance sustainable. This makes the growth strat- to a defensive posture. Due to the recent egy a very important arrow,” he says. dramatic changes in the financial markets, Bank of ’s Nobuyuki Hirano their mindset has been radically changed. “Corporate gov- “Within two years, agrees. He says without the third arrow, “They started making investments ernance has been stock values doubled. and the economic, industrial, social and overseas. In the earlier stage, they were strengthened and This had a huge im- labor market reforms that accompany it, still not quite confident in the real recov- Abenomics will not achieve its initial aims. ery of the Japanese domestic market. But return on equity has pact on Japan. Thanks Internationalization, after all, is a two-way it was clear for them that if they did noth- benefited from Abe- to this, we were able street. As Japanese companies move to ing, the industry would simply decline nomics’ growth strat- to get our hands on increase their holdings and activity abroad, and its competitiveness would gradually egies, both of which funds that allowed us the country must also prepare to open its lose meaning. They would not have the are stimulating the to prepare for further own doors wider. This is even more critical opportunity of growing in the future so given President Obama’s recent decision they started investing overseas,” Mr. private sector. This global operations. It to fast track the Trans-Pacific Partnership, Hirano says, adding that his bank has has been good for the was all a direct benefit comprised of 12 Pacific Rim countries. “I strongly supported these ventures. financial institutions.” of Abenomics.” am quite sure these reforms will add big “Then Japanese households momentum to the Japanese economy. The changed their mindset too. They Yasuhiro Sato, Pesident and CEO, Nobuyoshi Fujisawa, deregulation of different industries, includ- were sitting on almost zero interest- Mizuho Financial Group Pesident and CEO, J Trust Group ing the healthcare, agriculture and energy sectors, will mean a strong revitalization of bearing savings deposits. During the days the Japanese economy,” says Mr. Hirano. of deflation, this was the best performing Takashi Goto, President and CEO financial instrument. So rather than in- of Seibu Holdings, a leading real estate vesting into currencies, group and name behind the interna- project finance or equity, households tional Prince Hotel chain, believes the were satisfied with simply sitting on the growth strategy will take time to fully liquid-adjustable accounts. But now, peo- implement. “Japan has made drastic ple have begun to understand that defla- changes to recover from what we lost in tion is over and they have started looking the last 20 years. I have a high opinion at a more diverse scope of financial prod- of what Abenomics has achieved and ucts. I strongly believe that if we continue will yet achieve. I believe Japan is in the to make the current efforts and push the middle of a paradigm shift, that’s what I current policies forward, the Japanese tell my employees all the time,” he says. economy will regain its strength.” Mr. Goto believes that a renewed Yasuhiro Sato, President and CEO of focus on tourism in particular will help Mizuho Financial Group, Japan’s third- this shift along. “The major goal of all biggest bank by market value, agrees that this has been to leave the last 20 years Abenomics has helped Japan leave the behind us, and to strengthen our will to deflationary mindset behind. “Because open up to the international commu- of the stock increase, confidence in the nity, not only in the private sector, but in future has grown so we are more active. the public arena as well.” We are spending more on future growth. With Abenomics having translated into That’s a big change that must be credited relaxed visa requirements for Asians, a to Abenomics. Of course, it is a good thing move which has increased annual tourists for the banking industry because as long by nearly five million people, those attend- as the client has faith in the future, they ing the G7 Summit in this will use their money, they will take action May will join the ranks of swelling visitor and the economy will grow. Corporate numbers. In the spirit of Abenomics, Mie governance has been strengthened and Governor Eikei Suzuki is hoping the event return on equity has benefited from Abe- will draw the world’s attention to his pre- nomics’ growth strategies, both of which fecture. “We would like to communicate are stimulating the private sector. This has more globally and I am actively working to been good for the financial institutions enhance the visibility of Mie prefecture.” and loans have been increasing quite a Without a doubt, his efforts are in unison bit,” he comments. with this new, global Japan as a whole. Japan in the midst of a historic tourism boom Owing to a weak yen and an ease on visa restrictions, Japan is currently breaking visitor arrivals records every month – a trend that looks set to continue in the build up to the Tokyo 2020 Olympics

By the time the Olympic Games ar- Total spending by foreigners visiting Japan According to Mr. Sawada, consid- rive in Japan in 2020, the Japanese ering the great allure that Japan offers government already expects to have tourists, such as its distinct culture, 2010 1149 sprinted way over the finish line in its cuisine and natural beauty, the Asian race to achieve its ambitious target of nation has always had the potential 2011 20 million tourists. 813.5 to become a destination to rival the Indeed tourism in Japan is cur- billion JPY giants of world tourism, but “hasn’t rently in the midst of a historic boom. 2012 1084.9 been very good at communicating The number of foreign arrivals last year that to the world.” reached 19.73 million compared with 2013 1416.7 Under the Abe administration, just two thirds of that number in 2014, however, this is gradually beginning to and is nearly four times the 5.21 million 2014 2030.5 change. While Abenomics and other who visited in 2003 when the govern- government policies are being put ment’s “Visit Japan” campaign began. 2015 3480 in place to see the tourism industry The Ministry of Tourism also announced thrive, high profile international events in January that these visitors spent an Source: Japan’s Tourism agency, SG Cross Asset Research/Economics like the Olympics in 2020, and the G7 estimated 3.48 trillion yen ($30 billion) meeting later this year are giving the in 2015, making a giant 71.5% leap from is set up to become a tourism-oriented As Mr. Sawada stresses, this country the perfect platform to portray the 2.03 trillion yen recorded in 2014, it- nation, and the whole country is aiming proves that the robot hotel is not a an image of a new Japan – one that is self the previous high. to achieve this goal.” gimmick but a serious effort to use more open than ever before. This trend in tourism growth has He continues: “[Japan’s] paradigm technology and achieve efficiency. As Japan actively reorients its econo- rocketed ever since 2012, notable for shift consists of several factors, the first Indeed it is such innovativeness that my to adopt a more globalized outlook, being the time around when Prime being the speedy advance of an aging many of Japan’s tourism stakehold- tourism, says Mr. Goto, is key. “It’s very Minister Shinzo Abe and his Abenom- society, the second is the increase in ers believe can finally propel the important for us to communicate that Ja- ics strategy came to office. Yes, Aben- inbound tourism, which is something country towards becoming a leader pan is open to the world, and the tourism omics – many say – is the prevailing never seen before. In this environment, in the sector. sector is a fantastic way of doing this.” reason for this phenomenal spike Seibu Group needs to tackle innovation in tourism. But just how is it that an in a speedy manner.” economic policy can be responsible For Seibu Group, such innovation for attracting droves of tourists from all means new projects like senior sup- around the world, you may ask? port programs in their hotel segment For starters, Abenomics’ quantita- to accommodate simultaneously for tive easing scheme has dramatically Japan’s ageing population and domestic weakened the yen. In turn, this has tourism, which like international arriv- made Japan markedly less expensive als is also on an upward curve. Other for international visitors, and hence Japanese companies likewise eager to goes a long way to explaining why a take advantage of the rapidly inflating growing number of people are choos- tourism market are taking innovation to ing to vacation in the country now, es- a whole different level . pecially considering Japan’s reputation Take H.I.S. for instance, Japan’s larg- for being slightly on the expensive side. est listed tourism operator. Concerned There are a number of other gov- about the steadily rising costs of hotel ernment initiatives too that have helped accommodation in the country, last year pump life into the tourism industry, the company opened the world’s first says Takashi Goto, CEO and President fully functional hotel to be operated by of transport, hotel and real estate con- robots. “In order to combat the problem glomerate Seibu Holdings. “Since the (of rising costs) we developed a robot ho- beginning of the Abe administration, tel, keeping prices down while also pro- there has been drastic easing regarding viding the best services,” explains Hideo visas to Asian visitors, including China. Sawada, Chairman of H.I.S. The airline sector as well has been The Henn na – or aptly named speeding up and implementing poli- The Weird Hotel in English – is indeed cies such as increasing the flights going “manned” almost completely by robots, through Haneda International Airport.” from check-in facial recognition to nifty The chief of Seibu Holdings – which machines that carry luggage, saving not like many of the companies involved in only the company huge amounts on Japan’s tourism sector is undergoing un- labor overheads but also offering cus- precedented expansion – adds that he tomers massive savings too. Rooms at believes tourism has been the sector to The Henn na, for example, start at $80, have benefited most from Abenomics. “I a bargain for Japan, where a stay in one feel that the most successful policies are of the nicer hotels can easily cost twice tourism policies. At the moment, Japan or three times that much. Tradition and innovation behind the economic revolution of Mie Prefecture, host of the 2016 G7 Summit Mie Prefecture – an area of largely from infrastructure projects. However, the indirect impact – including tourism consumption Japan that symbolizes the in the next five years – has also been estimated country’s ancient culture and to hover closer to 175 billion yen. traditions – has been chosen Expanding the tourism industry is key to to host the G7 Summit, with achieving sustainable economic growth in the the event set to create a direct prefecture, which has already seen its interna- tional profile significantly boosted by collabora- economic impact of more than tion with Trip Advisor and other internet-related 50 billion yen services. “We would like to communicate more globally and in addition to Tokyo, Osaka, and Eight Japanese cities including , , Kyoto, we would like to put Mie Prefecture on , , Niigata, Karuizawa and Hama- the map,” says Mr. Suzuki, who aims to attract matsu, bid to host next year’s G7 Summit, but more MICE (meeting, incentive travel, conven- after months of careful consideration, Japanese tion and exhibition/event) tourism following the Prime Minister Shinzo Abe announced that the successful hosting of the G7. Ise-Shima region in Mie Prefecture would host With more than 70 golf courses, the prefec- the 42nd edition of the meeting, which will be ture is already well positioned to attract global held on May 26-27, 2016. tourism, although luxurious greens are not the Prime Minister Abe has a long and special only thing it plans to build its economy around. history with the area and with the Shima Kanko A hub for industry and innovation, the Mie Hotel, which he visited as a child. Famous for Prefecture is expected to achieve the highest “I think that the five important pearl farms and female sea divers (known as economic growth rate by 2025, according to the elements that decide investments Ama) who catch abalone and other varieties of mid-term economic forecast released by the are: economic growth, traffic and shellfish, Mie Prefecture is punctuated by Jingu, Japan Center for Economic Research, and already the Grand Shrine of Ise – a 2,000-year-old shrine produces more manufactured goods per capita infrastructure, concentration of dedicated to Kami (a Shinto deity) of the Imperial than any other region of Japan. “That means that global industries, excellent human family that Japanese Prime Ministers visit every the productivity of Mie prefecture is number one resources, and SMEs with excel- year after the New Year’s holiday. in Japan,” adds Mr. Suzuki. lent technology; Mie Prefecture “I hope world leaders will feel the rich culture Some of Japan’s biggest companies, Honda, has all five of these.” and tradition and beautiful nature,” said Prime Toyota and Toshiba all have manufacturing plants Minister Abe when he made the announcement in the prefecture, which in recent years has ex- that Mie Prefecture and Ise-Shima were chosen panded into more advanced industries, including Eikei Suzuki, to host the Summit. the manufacturing of semiconductors and liquid Governor of Mie Prefecture, The Prime Minister was also likely influenced crystal displays. In the Hokusei and Iga regions, a in his decision to choose Ise-Shima by the fact cluster of pharmaceutical, cosmetics and medical that it boasts excellent security. Closing down the equipment manufacturers drive Mie’s growing In order to stimulate prolonged invest- two bridges on the island of Kashikojima means medicine and health sectors, which also include ment from smaller companies, he has also that the G7 venue will be completely isolated R&D efforts in areas such as functional foods and borrowed the airline mileage system model so from the main island, but it is nonetheless well DNA sequencing. that companies can accrue investment points communicated with the rest of the world through While Mie Prefecture has been very active over time, and benefit from the same 20% Chubu International Airport. and strong in electronics, automobiles and petro- subsidy once they have hit the 500 million yen Yet in addition to cultural and logistical ad- chemicals, the Governor says that the next priority investment mark. vantages, Eikei Suzuki, the Governor of Mie segment for growth is the aerospace industry. “We Aside from investment incentives, Mr. Suzuki Prefecture, also believes that Ise-Shima is a have signed an MOU with Washington State re- believes that Mie has the five most important prime host for the Summit because it is located garding the aerospace industry, as well as with the elements for investors: “economic growth, in an exemplary Japanese prefecture. In addi- Val-d’Oise department, which is one of the centers traffic and infrastructure, concentration of tion to having the lowest unemployment rate in of aerospace industry in .” Mitsubishi Heavy global industries, excellent human resources Japan, Mie Prefecture has had lowest number Industries announced in June last year that it would and SMEs with excellent technology.” Investors of bankrupted enterprises over the past 20 years establish an “industrial cluster” in Matsusaka City should also consider its strategic location, just and the highest GDP, according to Mr. Suzuki. to manufacture parts for commercial aircrafts, one and a half hours from Osaka and two and “Abenomics has had a very favorable impact including the Mitsubishi Regional Jet and airplanes half hours from Tokyo. here,” he says. “We have excellent traditions, manufactured by Boeing. “I always use the same expression for the technology; and we would like to represent such The governor has very proactively estab- brand of Mie prefecture: ‘Tradition and innova- excellence to the world.” lished partnerships with foreign partners in the tion’,” the Governor concludes. “The tradition Governor Suzuki, who became Japan’s young- aerospace, electronics, IT, automotive and pet- is Jingu and the Ama; and on the other hand est Governor when elected in 2011, says that rochemicals industries, and has also established innovation regarding companies that utilize according to some analysts the direct economic a unique incentive program under which foreign high technology. Both, tradition and innovation impact of the G7 Summit in the country will be companies that invest more than 500 million coexist and I think that is one of the strengths around 51 billion yen ($425 million) , resulting yen can get a 20% subsidy on their investment. of Mie prefecture.”

Changing domestic landscape spurs Japan Inc.’s global shift Firms that have rejuvenated their business models for a more globalized world are set to greatly increase overseas profits

A sound business philosophy, a fact that the engines that power the and finding out what your poten- Keeping ahead of the cost curve growth-oriented shift, a long-term Japanese economy, domestic turn- tial customers expect from you. made it expedient to transfer man- strategy – however you see it, the over and private consumption, have The yen has depreciated by 55% ufacturing facilities to China after global marketplace can be any or been losing their thrust. since Prime Minister Shinzo Abe Japan became too expensive. When all of these things, but in Japan it is Hard-core demography is the introduced his ‘Abenomics’ package the same thing happened in China, something more: it’s an imperative. big problem. Japan’s population of economic reforms. But even the Brother uprooted once again and Japanese skills in manufacturing, is aging fast and declining. For two most favorable currency alignment went to Vietnam, and four years electronics and precision engineer- decades, a prohibitively strong will take you only so far, and no- ago opened its first plant in the ing are not to be underestimated, yen cost exporters many overseas body is more aware of those limits Philippines. The result: since 2009 but many analysts feel they are no customers. Outsourcing manu- than Toshikazu Koike, President net sales have climbed from 597 longer enough in themselves to en- facturing and services and hiring and CEO of Brother Industries. billion yen ($5 billion) to 800 bil- sure that its flagship firms remain skilled foreign workers are not as “Japan definitely has great lion yen estimated for 2015. competitive in world markets where common as in other countries, and strengths such as the kind and gen- People tend to think of merger consumer demand is surging along although almost every Japanese erous spirit of its people. I believe and acquisition as a strategic tool with major investment flows head- executive speaks some English, that spirit to be one of the strongest for large cap companies, but with ing to infrastructure and improved not all have the high level of com- in the world, but as for looking out- Mr. Koike at the helm, Brother has living standards. petency required to close major ward and being an open country in been aggressively pursuing prod- “Industrial reorganization and co- deals. Talented executives who terms of mindset, regulations and uct line diversification, with moves existence through compartmentaliza- are biz wizzes on their home turf policies, I think we are lagging far like its recent acquisition of the UK tion with an eye on global markets too often fail to understand the dy- behind,” Mr. Koike says. industrial printing and coding spe- centering on Asia are essential for Ja- namics of external markets config- Although he does not exempt cialist, Domino Printing Sciences. pan to reawaken in the 21st century,” ured in ways they are not familiar himself from that assessment, it is “Office products account for comments Masanori Murakami, Vice- with. The core issue for Japanese belied by the fact that the company two-thirds of our turnover, but Chancellor of Kyoto’s Ritsumeikan companies is establishing a long- he heads derives 80% of its revenue unfortunately their growth rate is University, who is concerned by the term presence in foreign markets from foreign sales, having come a starting to slow,” Brother’s presi- long way from its origins in 1908, dent says. “People have stopped when the founder used to go door- using printers and paper and rely to-door selling sewing machines to more on smartphones or tablets. Japanese housewives. “In a way, we went overseas be- cause it was necessary for survival. “The major goal has I went to the 34 years been to leave the last ago to develop the market for print- 20 years behind, and ers, faxes, multifunction products and labeling systems and we were strengthen our will quite successful. Our overseas busi- to open up Japan to ness grew while sales in the Japa- the international nese market stayed level. Having community” had success in the North America market, we also became successful Takashi Goto, President & in the rest of the world,” he adds. CEO of Seibu Group

The Nikkei Japan Manufacturing Purchasing Managers Index 2015 53 52.5 52 51.5 51 50.5 50 49.5 Jan.’15 Apr.’15 Jul.’15 Dec.’15 Source: Markit Economics But we expect to maintain growth “For Asia, since it was even more I, Robot “We expect to main- through a combination of new behind than Japan, it is not so dif- Indeed while the yen is down since tain growth through business opportunities, new prod- ficult to expand operations there. Abenomics kicked in, whether that a combination of new ucts, a diversified portfolio, and But you might ask why we operate is bad news or good news de- developing the business in emerg- in the US, where they are more pends on who you talk to. One of business opportunities, ing markets.” advanced. We are really there to the firms that has benefitted most new products, a diversi- learn by operating there in a five- from the depreciation is GLORY, fied portfolio, and de- American inspiration to 10-year vision, rather than to which specializes in all things veloping the business in Being known as “the Japanese have short-term profits,” adds money – that is, systems and emerging markets” version of IKEA” is not a terribly Mr. Nitori. technology for handling, counting, accurate description of how the Constantly striving to learn safeguarding, transporting and au- Toshikazu Koike, Nitori retail home furnishings gi- from the U.S., the company has a thenticating currency. President and CEO of ant sees itself, but the company’s program where it sends about 900 “By the end of March this year, Brother Industries President, Mr. Akio Nitori, prefers employees to America every year to many corporations in Japan had to take it as a compliment. “The develop best practices. “The reason achieved the best financial results biggest difference is that Ikea I am doing this is because I feel that ever,” says GLORY’s Chairman, Mr. “I believe the Trans produces and sells the same prod- we still need to learn from the US Hirokazu Onoe. “Abenomics has en- Pacific Partnership ucts in all its stores worldwide, and that we are still 10 to 20 years abled Japanese businesses to boost is a positive thing. whereas we sell products specific behind them. We are striving to investment in facilities and equip- It is very important to the area to meet the needs of close the gap,” he says. ment, and that has led to an increase to remove custom that particular culture. For China, While exporters may rejoice in demand that the manufacturing we take account of what they need that the yen has been allowed sector in particular has benefitted tax barriers between and what will be useful to them.” to sink, Nitori is an example of a from. So, all told, Abenomics has countries, not only bi- Actually, Mr. Nitori says he business feeling the Abenomics had a very positive impact on us.” laterally – for example, was inspired more by the United pinch, since most raw materials In this case, the decision to go just between the US States, where he was impressed and 90% of its finished products global was prompted by a saturated and Japan – but for all by the huge warehouse-like retail are imported – mainly from fac- local market. Japan is already one of spaces, spacious homes enhanced tories in Vietnam and . the most advanced countries on the the countries, so that with coordinated furnishings, and On the other hand, Nitori stands planet when it comes to systems used they are all on an equal the mixture of flair and functional- to benefit if and when the Trans- by banks and other financial institu- footing to do trade” ity in the design of everyday items. Pacific Partnership (TPP) accord tions for money handling so GLORY’s “Ever since I visited the US, my between the United States and potential for domestic growth is lim- Akio Nitori, goal has been to enrich everyday the other regional economic pow- ited in its country of origin. President of Nitori life of the Japanese people. I made erhouses is fully implemented, up my mind to develop and pro- allowing the unhindered flow of vide affordable and full-featured goods across their borders. products for them.” “I believe the TPP is a positive Nitori’s range of products thing. It is very important to re- consist of roughly equal parts move custom tax barriers between furniture and assorted house- countries, not only bilaterally – for hold goods. They are distributed example, just between the US and through 401 stores around the Japan – but for all the countries, so world, including three new ones that they are all on an equal footing in southern California doing busi- to do trade.” says Mr. Nitori. “I be- ness under the AkiHome brand. lieve that protection against trade The company aims to continue has never helped any country. In its expansion in Europe, Asia and Japan, the barriers are still very the U.S., with a long-term goal strong but I hope they will be torn to have 3,000 stores worldwide. down sooner rather than later.”

Japan Manufacturing Production 2015 4

2

% 0 growth

-2

-4 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Source: tradingeconomics.com, Ministry of Economy, Trade & Industry That was not so in 1950, when Japan’s top export commodities we offer excellent financial services the government asked GLORY to needed to get them involved and come up with a coin-wrapping sys- partnering in overseas activities.” tem, followed by prototype devices Unlike other Japanese banks like involving coin lockers, change mak- Mitsubishi and Sumitomo that have ers, vending machines and other 14.9% 5.4% 5% informal or overt links to the big in- everyday applications. Although the dustrial giants, Mizuho has no ties primary focus is still currency, the that would affect its ability to act as company has since branched out Motor vehicles Iron & steel Semiconductors an honest broker and deal facilita- on parallel research tracks involv- products tor. “Our risk management people ing facial recognition software, me- are the best. Our underperforming chatronics and other security safe- assets are less than 1%,” Mr. Sato guards. “This heritage of continually says and notes that Mizuho has a creating new products is something specific task force called the In- that is in our DNA and will continue 3.5% 4.8% 3.3% dustrial Research Division covering to be in it,” Mr. Onoe avows. more than 20 different sectors. And then there are the robots. “Only Mizuho can have a tre- Though GLORY was not involved Power generating Auto parts Plastic materials mendous amount of information in their design or core technology, machinery about the strategy of each industry these quasi-human machines have as we are not belonging to some been incorporated into its assem- Source: CIA World Factbook (2014 est.) specific Zaibatsu group. We are – in bly lines under an accord with the a way – a neutral financial institu- developer, Kawada Industries. The After the storm “Industrial reor- tion, different from Mitsubishi or machines “learn” how to perform cy- comes the opportunity ganization and co- Sumitomo. That’s the reason why clical multitask functions by adapting For all its blowback and unin- only Mizuho has this Industrial Re- their predetermined programming tended consequences, Abenom- existence through search Division.” to new input coming from human ics deserves full credit for having compartmentalization The changing domestic land- or digital operators. “The point of restored trust and confidence to with an eye on global scape has necessitated Japanese the trials here is to show that human investors and stability to the mar- markets centering on companies, both big and small, to and robot workers can co-exist in the kets. That is what has allowed the Asia are essential for look outwards and try to establish a workplace,” says Mr. Onoe. specialists at the Mizuho Finan- stronger presence in world markets. “We are going to face a future cial Group to step forward with Japan to reawaken in And with financial services firms like decline in human capital here in the skillset and determination to the 21st century” Mizuho behind them, the removal Japan, and we believe this is a great become one of the world’s most of trade barriers under the TPP and solution because with robots you trusted financial services groups Masanori Murakami, government policy facilitating their can achieve higher accuracy,” he ex- with a global presence and a Vice-Chancellor of Kyoto’s internationalization, Japanese com- plains. “They come with a camera, broad customer base and to con- Ritsumeikan University panies rejuvenating their business while with humans there are bound tribute to the prosperity of Japan models to go global are set to greatly to be mistakes. With robots we can and the wider region. increase overseas profits. also achieve multi-functionality For Mizuho’s President and It is not only Japan’s bigger in- so that in the daytime robots and CEO, Yatsuhiro Sato, there are no dustrial companies that are reori- humans work side by side, but only two ways about it. “I think Aben- enting towards world markets. With robots work through the night.” omics’ greatest contribution is that dwindling profits at home due to it changed the prevailing mindset. falling demand, Japan’s SMEs have It helped us all to shake off the de- to think global also – and in that “I think Abebnomics’ flation mentality.” Now Mizuho and regard, Mizuho is playing a crucial #TheWorldfolio greatest contribution is similar minded institutions are pre- supportive role for these firms. #JapanTheWorldfolio pared to help find productive des- “Our most important role is to that it changed the pre- tinations for the money Japanese introduce overseas business op- vailing mindset. It helped firms squirreled away for safekeep- portunities to Japanese SMEs. We PRODUCED BY us all to shake off the ing during the “lost decade” of as- have more than 40 overseas offices GLOBUS VISION deflation mentality.” set bubbles and bad loans, when in Asian areas. We can offer clients Connor Sullivan - Editorial Director corporate investment plunged by transaction between Japanese SMEs Livia Miron - Project Director Yatsuhiro Sato, 27% and heavily indebted small and Asian SMEs. We have a special, Luisa Galindo - Project Coordinator President and CEO, Mizuho and medium enterprises (SME) private department that sees to this Caroline Govin - Editorial Assistant Service Group went under. kind of matching. For the SMEs, Gemma Gutierrez - Regional Director

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