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Hiroshima Prefecture ■ INDEX

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Hiroshima Prefecture ■ INDEX ＩＲ Material Ｆｉｎａｎｃｉａｌ Ｃｏｎｄｉｔｉｏｎ ｏｆ Ｈｉｒｏｓｈｉｍａ Ｐｒｅｆｅｃｔｕｒｅ ２００７ Ｈｉｒｏｓｈｉｍａ Ｐｒｅｆｅｃｔｕｒｅ Hiroshima Prefecture ■ INDEX 1. Profile of Hiroshima Prefecture and its Industrial Revitalization 3. Outline of Initial Budget for Fiscal Year 2007 ■ Profile of Hiroshima Prefecture 7 ■ Scale of the budget 27 ■ Its function as nucleus base 8 ■ Characteristics of the budget 28 ■ Sustained development of key industries 9 ■ Creation of new industries (1) 10 4. Situation of Financial Results for Fiscal Year 2006 ■ Creation of new industries (2) 11 ■ Trends of financial results 31 ■ Creation of new industries (3) 12 ■ Financial indicators 32 ■ Major investments and entrants of different industries in agriculture13 ■ Special accounting settlement and Balance Sheet 33 ■ Recent economic situation 14 ■ Corporate account and Balance Sheet 34 ■ Tax revenue situation 15 ■ Financial results of companies with more than 1/2 capital contribution 35 ■ Trends of balance of funds 36 2. Promotion of Administrative and Fiscal Reform ■ Behavior of debt burdening 37 ■ Hiroshima style decentralized administration system 19 ■ Balance Sheet of Hiroshima 38 ■ Specific promotion of reforms 20 ■ Personnel downsizing of Hiroshima Prefecture 21 5. Hiroshima Prefectural Bond ■ Salary level of Hiroshima Prefecture 22 ■ Trends of primary balance 41 ■ Efforts toward financial soundness 23 ■ Trends of balance of prefectural bonds 42 ■ Issuance of public offering bonds 43 2 Hiroshima Prefecture 1 Profile of Hiroshima Prefecture and its Industrial Revitalization Hiroshima Prefecture ◆◆ Profile of Hiroshima Prefecture 【Profile】 ¾ Hiroshima Prefecture has every aspect of geomorphic characteristics of Japan, mountains, sea, rivers, valleys, plains, basins and others, and the climate ranges from severe coldness like northern districts to mild warmness like southern districts depending on the area. This provides a variety of local products as well as pleasure of sports, which led Hiroshima to be called as a “smaller version of Japan”. ¾ Along with core industrial (especially the automobile industry) and commercial activities centering around the Hiroshima Urban Zone (Hiroshima- shi, Kure-shi and others) and the Bingo Urban Zone (Fukuyama-shi, Onomichi-shi), agriculture and fishery industries are also active blessed with affluent nature like sea and mountains. ¾ International recognition of Hiroshima is extremely high with two World Heritages, namely Itsukushima Shrine and the Atomic Dome within the prefecture, attracting a lot of tourists from home and abroad. ¾ Its population is ranked at 12th in the nation with approximately 2.88 million people, and Hiroshima-shi, the largest city in Chugoku and Shikoku Distrcts is its prefectural capital. No.1 in the nation 【Changes in population and households】 【Major industrial, agricultural and fishery products ranked No.1 in the nation (2004)】 (thousand persons/households） Industrial Products (Shipment value, etc.) Billion Yen Share 3,500 Aluminum/Aluminum die-casting alloy 2,876 823 19.2% 3,000 Printing machinery 689 25.6% Oxygen gas 2,500 112 17.7% Rubber gloves 19 34.5% 2,000 Goods for basketball, volleyball, rugby, soccer, etc. 58 64.5% Painting goods (brush, oil paint, canvas, etc.) 1,500 1,145 59 36.6% File 1,000 11 73.5% Source: Ministry of Economy, Trade and Industry “Industrial statistics” 500 Farm and Marine Products (Amount of crop/production) Ton Share Cultured oyster 0 19 30 35 40 45 50 60 65 70 75 80 85 90 95 0005 116,540 49.8% Black porgy 9 5 10 15 25 30 35 40 45 50 55 60 2 7 12 17 552 14.7% Lemon 3,205 65.0% 大正 昭和 平成 Stone leak (2002) 2,124 49.5% Source：Ministry of Internal Affairs and Communication “National Census” Source: Agriculture, Forestry and Fishery Department, Hiroshima Pref. “Trends of Agriculture, Fishery and Forestry in Hiroshima Pref.” 4 Hiroshima Prefecture ◆◆ ItsIts FunctionFunction asas NucleusNucleus BaseBase Hiroshima is closely located to base cities! Access (land route) ◇In late Heisei 20s (2013-2017), Cross-Chugoku Expressway (Onomichi-Matsue Line) which For Shimane・ For Kansai constitutes a skeletal framework Tottori Sapporo of the land will be completed. Hiroshima Sendai Okinawa Airport Haneda Hiroshima Narita Nozomi Hikari Nozomi Nozomi Nozomi Nozomi Nozomi ＦｕｋｕｙａｍａＯｋａｙａｍａ Ｎａｇｏｙａ H Ｈｉｒｏｓｈｉｍａ ＳｈｉｎｏｓａｋａＫｙｏｔｏ Ｔｏｋｙｏ a k Ｏｓａｋａ a Tomakomai t a Hachinohe Dalian Miyazaki Hiroshima Nishi Tokyo Airport Pusan Chiba Kobe Kagoshima Setouchi Hiroshima Quingdao Shimanami Bullet Train Hiroshima Osaka Kaido For Yamaguchi・ Port Kure Port Automobile Ｉｍａｂａｒｉ Kyushu Ｍａｔｓｕｙａｍａ Seto- Hiroshima Port Regular Container Ohashi Regular Liner ◇In 2013, a network of the Hiroshima Service Bridge Airplane Fukuyama Port Regular Container Expressway will be completed Shanghai Service Hiroshima Pref. Kure Port Regular Container For Ehime Figure represents approximate time Naha Service to Hiroshima, which depends on Kaohsiung traffic conditions etc. Taicung Hong Kong As the core prefecture in Chugoku Shikoku Distrcts, Hiroshima Prefecture is equipped with the nucleus function as a base for abroad regional network of traffic such as expressways, airports and ports. 5 Hiroshima Prefecture ◆◆ Sustained Development of Key Industries ■ Sign of recovery for manufacturing industry <Value of shipment of products, etc. (2004-2006)> 【Change in the amount of added value】 （trillion yen） Ranked No.1 in Chugoku・Shikoku・Kyushu for 3 consecutive 3.0 years (Ranked 12th in the nation) <Amount of added value (2003-2006)> Iron and steel 2.5 Ranked No.1 in Chugoku・Shikoku・Kyushu for 4 consecutive years (Ranked 12th in the nation) Transport equipment 2.0 (Targeted value) Amount of added value of General machinery manufacturing industries in Hiroshima [From ¥2,773.6 billion in 2004 to ¥2,840.0 billion in 1.5 2010] Electronic parts/Devices ⇒ Already accomplished in 2005 (¥2,936.4 billion) 1.0 【2003. Industry-classified composition of added value】 Iron and steel General machinery Transport equipment Electronic parts/Devices Electro, information and Chemical Metal product Food stuff Others 0.5 Others telecommunication equipment Hiroshima Pref. 0.0 Whole nation ‘02 ‘03 ‘04 ‘05 （Fiscal Year） 0% 20% 40% 60% 80% 100% 6 Hiroshima Prefecture ◆◆ CreationCreation ofof NewNew IndustriesIndustries (1)(1) ■ Accumulation of emerging growth industries and creation of venture companies Shipment value of manufactured Accelerated accumulation of mobile phone related companies in Hiroshima products (electric machinery) (1990- 2005 comparison) Composition ratio: 5.2% ⇒14.7% Cross-Chugoku Expressway Shipment value: enlarged about 2.5 (Hiroshima Hamada Line) times ¥463.9 billion (1990) ⇒ ¥1,144.1 billion Cross-Chugoku Expressway Chugoku Expressway （Onomichi-Matsue Line） (2005) Mobile phones of SHARP Sanyo Expressway CCD camera (Target value) Hiroshima City Magnesium LC cover Sharp (Fukuyama) Amount of added value in 5 MG Precision (Aki District, Hiroshima City) areas (*) Optical film for LC ¥1,439.6 billion (2003) Nishi Seto Expressway NITTO DENKO (Onomichi) Anti reflection film for FPD LC screen protection acrylic plate Flexible base Color filter for LC Mitsubishi Rayon (Otake) Sharp (Mihara) Dai Nippon Printing (Mihara) DRAM ¥1,920.0billion (2010) Film for flexible base Elpida Memory R＆D manufacturing Mitsui Chemical (Otake) (Higashi Hiroshima City) Sharp（Higashi Hiroshima City） (Iwakuni, Yamaguchi Pref.) Five areas: Information and telecommunication, environment, new manufacturing technology, medical, welfare and biotechnology 7 Hiroshima Prefecture ◆◆Creation of New Industries (2) ■ Promotion of business advance Situation concerning the advance in Industrial complexes in Hiroshima industrial complexes managed by prefecture (Location agreement base) Expressway Miyoshi High Technology Complex Shobara Industrial Complex case Oasa Industrial Complex ha 30 Dimensions (left) 27 Ujigami Industrial Complex Yamato Industrial Fukuyama Kita Industrial Complex Chiyoda Industrial Complex 30.0 Number of cases (right) 24 Distribution Complex 21 Kui Industrial Complex Shinichi Industrial Complex Hiroshima Seifu-Shinto Kawachi Rinku Complex 20 Minooki Industrial Complex 17 Saeki Industrial Complex 20.0 14 Techno Town Higashi Hiroshima Miyauchi Industrial Onomichi Distribution Complex Complex Land 9 10 10.0 Mihara Seibu Industrial Complex Otake Chuo Industrial Complex Yasuura Industrial Takehara Industrial Complex 21.7 15.9 21.4 Otake Industrial Complex Distribution Complex 8.8 27.3 31.6 0.0 0 Itsukaichi District Motoujina District Naeshiro Industrial Complex 01 02 03 04 05 06 Dejima District Aga Marinopolis Area Tenno Second Stage Reclaimed Land (Target value) Number of business advances in the prefecture and dimensions (Accumulated) From 49 cases, 75.9ha (2004) to 157 cases, 208ha (2005-2008) 8 Hiroshima Prefecture ◆◆Creation of New Industries (3) ■ Support system of Hiroshima Prefecture to promote corporate advance (extract) Division Subject of subsidy Subject area・complex Ｃondition of recipient Ｓubsidy amount (Formula) Ｌimit Equivalent to Ｐref. owned Manufacturing, sales, R&D, Land price x (max) 25% None Ｌand Land price industrial complex service industry, etc. Equivalent to Pref. owned Manufacturing, sales, R&D, Equivalent to real estate Tax real estate None service industry, etc. acquisition tax of land・building acquisition tax Industrial complex 【Pref. owned industrial 【Prefecture complex】 New plant, owned 】 Capital investment amount new (excluding land price) x 15% ¥500 million Manufacturing, sales, R&D, distribution Pref. owned industrial 【Other public complex】 Building facility, complex,
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