Investment Environment for Greater Nagoya GreaterGreater NagoyaNagoya -Central is the Gateway to the World-

Geographical Position: Located in the Central of Japan Population: 11 Million (as of 2012) GDP: US$ 491.1 Billion (as of 2010)

Tokyo

Greater Nagoya Osaka Approx. 100 km in radius centered at Nagoya

Source: Ministry of Internal Affairs and Communications 2 EconomicEconomic ScaleScale

Ranked at 20th position in the world in terms of GDP, Equal to that of Switzerland & Poland. GDP per capita of this region is equal to that of leading countries of the West. GDP in International Comparison Unit: US billion dollars USA (1) 14,447 China (2) 5,739 Japan (3) 5,503 Germany (4) 3,280 France (5) 2,559 707 Indonesia (18) Per-Capita GDP in International Comparison ( ) 527 Switzerland 19 USA Greater Nagoya (20) 491 Greater Poland (21) 469 Nagoya Belgium (22) 466 Japan Germany France 3 Source: Tokai Keizai no Point 2012 (Point of Economy in Tokai Region) ) China Economic Scale in Comparison:3 Major Metropolitan Areas

In terms of economic scale, Greater Nagoya occupies approx. 10% in Japan. It is the center of manufacturing industry; value of shipment of manufactured products occupies approx. 20%.

Value of Shipment of Manufactured Products, etc.

Source: Tokai Keizai no Point (Point of Economy in Tokai Region) (Comparison of 3 Major Economic Zones) 4 IndustrialIndustrial StructureStructure

Value of shipment of manufactured products occupies 20% in Japan (2009) Among them, shipments of transportation machinery account for more than 40%(2009) Industry-classified Share of Domestic Manufactured Goods Shipments (%)

Total manufacturing industry

Transport equipment

Rubber products Classification Plastic products by industry in Chubu Ceramics, stone, and clay products Electric components and devices Wood, wood products, Plastics 4% and furniture Metal 4% Textiles products Steel 5%

Electrical machinery Chemistry 5% Iron and steel Food and Beverage 5%

Fabricated metals

5 Source: GNI promotion office, Chubu Bureau, Ministry of Economy, Trade, and Industry(Tokai Keizai no Point 2012) Note: These share is Chubu area’s share (Aichi, , Mie,Toyama and Ishikawa prefectures, including Greater Nagoya area) ManufacturingManufacturing asas aa KeyKey IndustryIndustry

Greater Nagoya has a number of products that gain a significant market share in the country. Share in Japan (2011) ◆ Aircraft / Aircraft Parts ◆ Internal Combustion Kawasaki Heavy Industries, Ltd. Engine Electrical Fuji Heavy Industries Ltd. Components Mitsubishi Heavy Industries, Ltd. DENSO CORPORATION

Mitsubishi Regional Jet (MRJ) From Mitsubishi Heavy Industries, Ltd Official Website ◆ Catalyst carriers / ceramic filters ◆ Automotives IBIDEN CO.,LTD. Toyota Motor Corporation NGK INSULATORS, LTD. Honda Motor Co., Ltd Mitsubishi Motors Corporation

◆ Metal Machine Tools OKUMA ◆ Automotive Parts Yamazaki Mazak Corporation AISIN AW CO.,LTD. MORI SEIKI CO., LTD. DENSO CORPORATION

Source: GNI promotion office, Chubu Bureau, Ministry of Economy, Trade, and Industry 6 ConcentrationConcentration ofof CompaniesCompanies inin GreaterGreater NagoyaNagoya

Greater Nagoya has a concentration of many world-famous leading edge enterprises including automobile, aerospace, manufacturing tool and semiconductor manufacturers Many overseas enterprises locate their office here 1. AISIN SEIKI CO., LTD. 15. TOSHIBA CORPORATION

1. BASF Japan Ltd. 2. INAX Corporation 16. Toyota Industries Corporation 3. IBIDEN CO., LTD. 2. Bodycote Japan K.K. 17. TOYOTA BOSHOKU 4. NGK INSULATORS, LTD. CORPORATION 3. Borg Wamer Morse TEC Japan K.K. 5. NGK SPARK PLUG CO., LTD. 18. TOYOTA MOTOR CORPORATION 4. LORD Far East, Inc. 6. NTN Corporation 19. Pacific Industrial Co., Ltd. 5. IKEA Distribution 7. Okumura Corporation Services K.K 9 20. BROTHER INDUSTRIES, LTD. 8 26 8. Kawasaki Heavy Industries, 6. Magna International 10 2 7 Ltd. 19 3 21. Honda Motor Co., Ltd. Japan Inc. 5 6 13 11 6 5 9. GIFU AUTO BODY Co., Ltd. 23 15 1 4 4 18 22. Makita Corporation 7. Nihon Cabot 24 14 Microelectronics KK 12 21 2 20 1 22 10. TENRYU AERO 25 8 COMPONENT CO., LTD. 7 16 17 23. Mitsubishi Chemical 3 9 Corporation 8. Pfizer Japan Inc. 11. Sumitomo Wiring Systems, Ltd. 24. Mitsubishi Heavy Industries, 9. VOLKSWAGEN Group Ltd. Japan K.K. 12. SHARP CORPORATION 25. MORI SEIKI CO., LTD. 13. Daido Steel Co., Ltd. Japanese enterprises 26. Yamazaki Mazak Corporation Overseas enterprises 14. DENSO CORPORATION * In alphabetical order 7 R&DR&D FacilitiesFacilities inin GreaterGreater NagoyaNagoya

Greater Nagoya is the center of universities, public institutions and private training centers that studies state-of-the-art technologies in various industrial fields which Japan is leading the world

The image of Press molding machine and Biaxial extruder Heat & Cool Controller

Infrared Radiation Steam temperature (IR) Heater Controller

Air Vacuum device

Water & Oil temperature Controller

LFT-D Injector for Resin Transfer Direct Long-Fiber Thermoplastic Molding (RTM) Boiler (Outlet of Materials) Nagoya University Material Research Laboratory for National Composite Center Four Nobel Prize Winners Green Vehicle (Since April 2011) (Since June 2013)

Knowledge Hub Japan Fine Ceramics Center (Central Japan Synchrotron Radiation Facility since 2012) (Nanostructures Research Laboratory since April 2007) The wisdom center open as a technological center for next generation manufacturing. JFCC established “Nanostructures Research Laboratory” that is one of the It will have a synchrotron light facility and advanced computational analysis systems. world’s top level center for microstructural material design. 8 R&DR&D FacilitiesFacilities ExampleExample II

Green Vehicle Collaborative Research Center Since April 2011, Nagoya University has established the Materials Research Laboratory for Green Vehicle as an international facility for research & development of “The Automobile Technology of the Future”. We prefer to the automobile of the future as a ‘Green Vehicle’, incorporating the technologies of Energy Creation, Energy Conservation, Resource Recycling, and Safety Technology that lead the move to a more human and environmentally-friendly low-carbon society. This research & development work aims at Green Innovation for automobile materials and technologies to lead the world.

Leading Company with Global Competitiveness Companies in Chubu Region related to Wisdom Automobiles and Mobile Industry AIST Chubu Center Center Aichi, Gifu and Nagoya University Nanometrology Mie Prefectures Cluster Locally Settled Global Industry- and Nagoya City catalyst Academia Collaboration R&D Site Energy saving materials Alternative rare earth Bio fuel Alternative rare metal

Renewable energy Ultra light parts

Universities and Public R&D Local administrations Institutions

Power device Fuel cells Materials Research Laboratory for Green Vehicle Fuel Motor materials Concentration of broad ‘wisdom’ existing Growth strategy integrating Secondary Recycling of Recycling in Tokai Region Inter-academia and efforts of local economies global collaborations via concentration battery energy technology Future urban planning and adjustment of broad ‘wisdom’ existing in Tokai Region Leading SMEs 9 Leading Edge Companies Capable of Causing an Industrial Structural Reform R&DR&D FacilitiesFacilities ExampleExample ⅡⅡ

National Composite Center -NCC is the center for R&D, experimental studies and evaluation for composite material structural technology, first of its kind in Japan. It maintains a network with other composite R&D centers throughout Japan. -At NCC, R&D of large number of forming technologies and evaluation and standardization of lightening, fire and flame resistance tests are taken place with the cooperation of industries, academia and government. -NCC makes it possible to make a mockup and to evaluate a life-size large-scale member forming that was conventionally done overseas only (Germany and France, etc.). In addition, it studies lightning, fire and flame resistance tests as a package, which cannot be seen at any corner of the world. It is expected that NCC will contributes to Japan’s standardization strategy for composite material evaluation technology.

■ Examples of Machines to be Setup [Project owner]: Nagoya University [Location]: Nagoya University, Higashiyama Campus [Operation to start in]: June, 2013 [Project scale]: Approx. ¥2,000,000,000 (Up to 2/3rd of the funds will be provided by METI.)

Twin-Screw Extruder Seismic Qualification Testing Participants (incl. supporting entities) Machine [Private Sector]: Material, Aerospace, Automobile and Equipment- Related Manufacturers, Support Organizations (JADC, C-ASTEC and RIMCOF Dept. of SOKEIZAI Center) and other relevant SMEs. [Academia]: Nagoya University, The University of Tokyo, Nagoya Institute of Technology, Gifu University, Kanazawa Institute of Technology and Daido University, etc. [Government]: JAXA, AIST, Knowledge Hub, TIC Gifu and IRII, Large-sized pressing and etc. forming machine Fire and Flame Resistance Testing Machine 10 R&DR&D FacilitiesFacilities ExampleExample ⅢⅢ

Technological Innovation Center GIFU

・ Formation of the research activities of industry-academia-government collaboration such as aircraft, next generation vehicles and environmentally-conscious products. ・ The center provides resources and support for industry-academia-government collaborative research in terms of utilization of facilities in molding, processing, testing, evaluation and joint research space. ・ Molding and processing machinery for carbon fiber composite material. ・ Testing for certification of aircraft panels is available. ・ Advanced quality evaluation tests such as surface analysis and non-destructive inspections are available.

<Main target fields> ■ Examples of Machines ・ Aircraft, Next generation vehicle Research and development of a new processing technology that is complementary with the low-cost and high-speed of the lightweight strengthening member for aircraft, and research and development of production at a low cost that aims at diversion technology for the next generation vehicle field. ・ Advanced medical device (Hot press ) (Compact autoclave ) Work in research and development for higher value-added and higher performance medical devices. ・ Environment-conscious product Development for low cost and energy saving of molding technology, research and development for high functionality through a composite of different materials. (X-ray CT System) 11 R&DR&D FacilitiesFacilities ExampleExample ⅣⅣ

Advanced Materials Innovation Center (AMIC)

・ Founded in March of 2008, the Advanced Materials Innovation Center (AMIC) has the integration of the materials industry, and also the integration of the assembling industry, which use these materials. It has prepared the organization, where engineers of both industries meet together and additionally, the academic people in universities and research laboratories join and exchange their knowledge, experience and consideration to one another and get a hint of Innovation. ・ Here, implementation of various support measures that aim toward the local industry of mass-produced mature products converts to the knowledge-intensive, R&D-intensive industrial structure.

Collaboration Among Trainings of Talented Various Organizations People at AMIC at AMIC

Raw Materials Manufacturing Enterprises Researchers Raw Materials User Enterprises Human Collabor Resource ation Local SMEs Training Engineers

Universities, R&D Institutes in Japan Skilled Universities, R&D Institutes Engineers Abroad

12 EconomicEconomic OutlineOutline ofof GreaterGreater NagoyaNagoya

Production showed a sharp decrease at the Second Quarter of 2011 due to the Great East Japan Earthquake. First Quarter of 2012 showed a sharp increase owing to recovery of transportation machinery. Amplitude of Production of the Greater Nagoya region is large compared to that of Tokyo and Osaka. IP (Industrial Production)

Source: ‘Industrial Production Index of Chubu Region’ by Chubu Bureau of Economy, Trade and Industry, ‘Industrial Production Index of Kanto Region’ by Kanto Bureau of Economy, Trade and Industry and ‘Industrial Production Index of Kinki Region’ by Kansai Bureau of Economy, Trade and Industry Note: Data for 2013 may be subject to a change due to correction of annual data. ‘Greater Nagoya’ consists of 3 prefectures including Aichi, Gifu and Mie, ‘Kanto Region’, 10 prefectures of Ibaragi, Gunma, Saitama, Chiba, Tokyo, Kanagawa, Niigata, 13 Yamanashi, Nagano and Shizuoka and ‘Kinki Region’, 7 prefectures of Fukui, Shiga, Kyoto, Osaka, Hyogo, Nara and Wakayama. Transition of Factory Locations Number in Greater Nagoya area

As of 2012, 116 factories chose Greater Nagoya Region as their location. Factory locations number in this region increased two years in a row.

Transition of Factory Locations Number in Greater Nagoya area(2012)

Share in Japan(%)

(Cases) 9.4%

Mie Pref

Gifu Pref

Aichi Pref

Source: ‘Survey on the Trend of Number of New Factories locations Established in 2012’ (issued by Chubu Bureau of Economy, Trade and Industry in April 2013) 14 AdvantagesAdvantages ofof GreaterGreater NagoyaNagoyaⅠⅠ Inexpensive Land Price Rent Though as one of the three major urban zones in Japan (Tokyo Metropolis, Kinki and Nagoya Zones), Aichi Area (Nagoya Zone) is a favorable place for starting a business, with its low average land price in its commercial areas and low office rent [Average Land Prices of Commercial Areas ] (Yen/㎡)

Tokyo

Osaka

Greater Nagoya (Aichi) [Source] Survey on Land Prices in Prefectures in Japan for 2012 MLIT) [Average Office Rent] (Yen/Tsubo: Approx. 3.3㎡) 23 Wards of Tokyo 12,350 (Tokyo Area) Saitama City (Tokyo Area) 10,350

Yokohama City 10,040 (Tokyo Area)

Kyoto City 9,940 (Osaka Area)

Kobe City 9,400 (Osaka Area)

Nagoya City 9,370 (Greater Nagoya Area) *These data are as of January 2013 [Source] OFFICE MARKET REPORT(CB RICHARD ELLIS) 15 AdvantagesAdvantages ofof GreaterGreater NagoyaNagoyaⅡⅡ

Superb Infrastructure

The Shin Tomei Expressway

Ishikawa Pref. Toyama Pref. Central Japan International Nigata Pref. Airport (Centrair) Fukui Pref. The Chuo Shinkansen Nagoya-Port

Gifu Pref. Nagano Gunma Pref. Earthquake Resistant Quay Pref.

Shiga Pref.

Mikawa-Port(JINNO AREA)

LINEAR CHUO SHINKANSEN ( Planned to open in 2027)

Aichi Pref. Kanagawa Pref.

Mie Pref. Nara Pref.

Railway(JR)

Suruga Bay Yokkaichi-Port

Clearing missing links, etc. (road) [Source:Yokkaichi Port Planned route for the Chuo Shinkansen Authority] Assumed focal regions (earthquake) 16 AdvantagesAdvantages ofof GreaterGreater NagoyaNagoya ⅢⅢ

Active use of renewable energy In the Greater Nagoya region, share of new energy including Photovoltaic & Wind Power is expanding. Transition of market share of new energy in the Greater Nagoya region

Wind power generation

Hydraulic power generation

Photovoltaic power generation

Biomass generation

Share in Japan(%)

Source: Tokai Keizai no Point 2012 (Point of Economy in Tokai Region) ) 17 Note : These share is Chubu area’s share (Aichi, Gifu, Mie,Toyama and Ishikawa prefectures, including Greater Nagoya area) 17 GreaterGreater NagoyaNagoya InitiativeInitiative OrganizationOrganization ChartChart

Common brand for industrial promotion, promotion of internal investment and international exchange activities Implementing local policies under the brand of ‘Greater Nagoya’ Supporting attracting investment to Japan and developing overseas businesses promoting business exchange activities

Administration Business Community •Federation of Industries • Aichi, Gifu, Mie Pref. & Nagoya-city •Chambers of Commerce • Other Municipalities •I-BAC (International Business Access Center)

Academia • 65 Universities Chubu Bureau of • Research Institutes Economy, Trade and Industry GNIC Office One Stop Center For Global GNI Partners Club Industries Over 500 Companies in the region

Japan External Trade Organization

18 AchievementAchievement byby GreaterGreater NagoyaNagoya InitiativeInitiative

◆ More than 670 overseas companies invited to Greater Nagoya region 48 seminars and 5,520 participants in Total About 2,000 visits to overseas enterprises were organized. (The considerable number of companies continue to contact for business issues. ) ◆ 45 Overseas Mission organized by GNIC Adelegation of GNI visited about 230 companies in 13 countries such as Europe and USA. (Total Number of GNI Seminar Participants: About 2500 people) *About 2200 Business Matching were organized by GNIC. ◆ Examples of GNI activities promoted at home and abroad  May 2012 American Chamber of Commerce in Japan (ACCJ) Industrial Tour  May 2012 SYMPOSIUM GREATER NAGOYA 2012  Jul 2012 “Symposium Greater Nagoya – JAPAN AEROSPACE 2012” at Farnborough International Airshow  Oct 2012 Aerospace Industry Symposium in Greater Nagoya  Oct 2012 GNI booth in “Japan International Aerospace Exhibition 2012″  Jan 2013 GNI presents Next Generation Industry Seminar  Feb 2013 Green Innovation Seminar (Germany)  Feb 2013 “MONOZUKURI” Innovation Seminar (France)

◆ Overseas Companies Launched into Greater Nagoya: 102 companies Prologis,Prologis, Inc.Inc. (USA)(USA) IKEA IKEA DistributionDistribution CenterCenter (Sweden)(Sweden) TÜV TÜV SÜD SÜD Ohtama,Ohtama, Ltd.Ltd. (Germany)(Germany) *Sep*Sep 88 20112011 HeldHeld aa signingsigning ceremonyceremony forfor anan agreeagreementment onon location:location: MAG-MAG-ISOVERISOVER K.K.K.K. (Tsu/Mie)(Tsu/Mie) AA FrenchFrench manufacturingmanufacturing plantplant forfor reresidentialsidential grass-woolgrass-wool insulationinsulation *Mar*Mar 1414 20122012 HeldHeld aa SigningSigning ceremonyceremony forfor anan agreemenagreementt onon operation:operation: AmazonAmazon JapanJapan LogisticsLogistics K.K.(Tajimi/Gifu)K.K.(Tajimi/Gifu) AA logisticlogistic centercenter ofof AmazonAmazon JapanJapan K.K.K.K. *Jun*Jun 1414 20122012 HeldHeld aa signingsigning cereceremonymony toto setset upup aa newnew jointjoint venturventure:e: UmicoreUmicore ShokubaiShokubai (Tokoname/Aichi)(Tokoname/Aichi) AnAn RR && DD CenterCenter forfor purificationpurification cacatalysttalyst ofof automobileautomobile gasgas emissionsemissions *Jan*Jan 20132013 EstablishedEstablished aa company:company: KrannichKrannich SolarSolar JapanJapan (Nagoya/Aichi)(Nagoya/Aichi) ConsultationConsultation andand salessales ofof solarsolar energyenergy generationgeneration systems.systems. 19 AchievementAchievement byby GreaterGreater NagoyaNagoya InitiativeInitiative

◆Main Achievements ①Japan International Aerospace Exhibition 2012 (JA2012)

PR activities by GNI mission to UK & France(July 8-12, 2012) At Farnborough Airshow 2012, we introduced ourselves and proposed business collaboration in the aerospace industry. PR activities at the airshow Aerospace Industry Forum 2012-Aerospace Industry Symposium in Greater Nagoya(Oct. 8, 2012) We held a symposium(lecturer:BOEING,AIRBUS,ADSE,Lamborghini)and high-level talks the day before Japan International Aerospace Exhibition 2012 (JA2012). There we also organized B to B matching between the GN companies and foreign big company(MOOG,SAFRAN). High-level talks Japan International Aerospace Exhibition 2012 (JA2012)(Oct. 9-14, 2012) One of the world-leading aerospace exhibitions held quadrennially, the Japan International Aerospace Exhibition was held in the GN region for the first time. We organized a Poland Business Seminar and Netherlands Business Seminar, welcomed overseas missions and held various business meetings. Poland Business Seminar

◆Main Achievements ②Business Tie-Ups with French and German Organizations Opening Remarks by Mr. Christian Masse Networking France-Greater Nagoya Investment Seminar(May 30, 2012) We hosted an investment seminar in the GN region for the first time and invited Ambassadeur, Mr.Christian Masset, French ambassador to Japan. Our courtesy call on Chairman, Mr. Bernard Delmas(French Chamber of Commerce and Industry in Japan) at Paris Airshow 2011 led to this opportunity. There we organized an industrial tour to the TORAY Automotive Center. Secondary Investment Seminar (France) Promotion of Secondary Investment(France)“MONOZUKURI”Innovation Seminar(Feb.19, 2013) In order to maintain and strengthen economic relations with France, we held a secondary investment seminar and networking event inviteing Chairman, Mr. Bernard Delmas and other parties at CCIFJ. Promotion of Secondary Investment(Germany)Green Innovation Seminar(Feb. 6, 2013)  Secondary Investment In order to establish and deepen economic relations with Germany, we held a secondary investment Seminar(Germany) seminar and networking event in collaboration with the German Chamber of Commerce and Industry in Japan. We shared cases of Toyota city and the Toyota Motor Company, as best practices in the field of eco-friendly and energy-saving technology. AchievementAchievement byby GreaterGreater NagoyaNagoya InitiativeInitiative

◆Main Achievements ③Strengthening of Relationship with Overseas Research Institutes Business Seminar and Matching Event in Collaboration with EU Research Institutes(Jan. 21-25, 2013) We invited two high-tech EU institutes Fraunhofer ICT(Germany) and CSEM (Switzerland)to Greater Nagoya. ・Fraunhofer ICT:One of the largest institutes in the field of applied science(composite manufacturing/ applied technology/battery) ・CSEM (Swiss Center for Electronics and Micro-technology): An organization promoting micro-technology ◆Business Matching Project with EU Institutes(Jan. 21-24, 2013) In order to develop industries in the Greater Nagoya region and gain international competitiveness, we organized a business matching event < Matching Results > with European research institutes. ◆Matching Number・・・・ 31inin totaltotal ◆Quotations・・・・・・2 in total ◆Appointments・・・・・・9 in total ◆Catalogs and Samples送付件数 ・・・・・・6 in total ★MOU & Collaboration Office (On-Campus) CSEM, Mie Pref. and Mie Univ. Business Matching Business Matching with MOU ceremony (CSEM, Mie ★MOU b/w Fraunhofer ICT & National Pref. & Mie Univ.) with Fraunhofer ICT CSEM Composite Center(Nagoya Univ.) ◆Greater Nagoya: Next Generation Industry Seminar(Jan. 25, 2013) We held a seminar for the purpose of upgrading our growing industries including next-generation automobile, aerospace and health care fields. European research institutes, we invited for this purpose, delivered a lecture on various topics such as applied electrochemistry, composite technology, micro-technology and so on. Date:Jan. 25, 2013 Time:1:30 p.m.~5:00 p.m. Venue:Towers Ballroom(16th Floor), Nagoya Marriott Associa Hotel Organizer:Greater Nagoya Initiative Center 後 援: Chubu Economic Federation, Nagoya Chamber of Commerce and Industry, JETRO Nagoya, Aichi Science & Technology Foundation 協 力: CSEM(Switzerland), Fraunhofer ICT(Germany) Next Generation Industry Seminar Participants:108 FunctionsFunctions ofof GreaterGreater NagoyaNagoya InitiativeInitiative

・Embassies in Japan ・Chambers of Commerce ・Governments & Investment and Industry Agencies ・Embassies & Investment ・Research Institutes ・Local Governments ・Research Institutes Agencies ・Industrial Clusters ・Business Groups etc. ・Industrial Clusters ・Local Governments etc. ・Major Companies etc. Foreign Governments & Organizations Foreign Governments & Organizations Industry & Academia In Japan Overseas

As a Liaison With Overseas & In the Region

・Aichi, Gifu and Mie Pref. ・Chubu Bureau of METI ・Nagoya and Other Member ・JETRO Cities ・Chubu Economic Federation ・Nagoya Chamber of Commerce & Industry ・Member Organizations Japanese Government Local Governments ・GNI Partners Club & Organizations Industry World 22 EnterprisesEnterprises inin GreaterGreater NagoyaNagoya

Number of Businesses by Type by Year 25 4 102 Hotels and Restaurants companies is total Control and Support 20 Services 5 advance into Greater Nagoya area Expert, Science and Technology 1 1 Services 15 1 1 Real Estate 4 1 1 1 Finance and Insurance 10 1 1 4 2 1 3 Wholesaling and Retailing 2 1 2 24 1 1 1 2 Transportation and Storage 5 1 11 1 2 8 Information Communication 5 556 5 1 2 Manufacturing 0 11 2004 2005 2006 2007 2008 2009 2010 2011 2012

Expert, Science and Technology Services Manufacturing Information Communication Transportation and Storage Wholesaling and Retailing Finance and Insurance Control and Support Services Hotels and Restaurants Foreign-Capital Enterprises Promotion Scheme [GNIC]

GNI Business Startup Support Program ◆ Goal Greater Nagoya Initiative (GNI) will subsidize a portion of the expenses for overseas affiliated companies planning to advance business in the Greater Nagoya region as incentive of investment promotion in Greater Nagoya. ◆ Target Overseas affiliated companies who have an investment ratio of 50% or more from outside of Japan and who plan to advance their business in the Greater Nagoya region

Targeted Expenses 1 ◆Costs for procedural requirements for establishing the company in the Greater Nagoya region Consultation fees and expenses for specialists in company registration and visa applications including legal advisors, judicial scrivener, certified public accountant, licensed tax accountant, administrative consultant, and public consultant on social and labor insurance (Translation expenses are included.) *Tax and public dues such as the registration and license tax and stamp fees are excluded. UpUp toto ¥¥500,000/company500,000/company

Targeted Expenses 2

◆Expenses for personnel recruitment, brokerage costs of an office, or market research etc. UpUp toto ¥¥500,000/company500,000/company

Total Amount: Supporting Expenses of up to ¥¥11 millionmillion 24 Foreign-Capital Enterprises Promotion Scheme [Ministry of Economy, Trade and Industry(METI)]

Support for Promoting Asian Site Location in Japan For inviting global enterprises and R&D hubs in Japan, METI is promoting the following cross-sectional activities: -Preferential measures of taxation for certified enterprises under the legislation -Incentives such as subsidies -Coordination with ‘International Strategy Comprehensive Zones’

Subsidy Program for Projects Promoting Asian Site Location in Japan -Helps establishing a control site or an R&D site -Covers fees for construction of offices and facilities and office rents -Up to a half of required costs granted to SMEs and up to a third for non-SMEs Bill for Promoting Asian Site Location in Japan: Promulgated on August 3, 2012 -Applying reduced or exempted corporate tax to a global enterprise certified by the competent minister -Provided relaxed patent fees, etc. International Strategy Comprehensive Zones -In such zones, preferential measures on regulations and support measures in terms of taxation (reduced tax rates for corporate taxes, etc.), finance and loans will be provided in a comprehensive and intensive manner. 25 International Strategy Comprehensive Zone Ⅰ [Special Zone for Forming the No. 1 Aerospace Industrial Cluster in Asia]

Summary of Application (Designated on Dec. 22, 2011) To form the largest and strongest aerospace industrial cluster in Asia

‘Greater Nagoya Area’ Where Japan’s largest aerospace industries are concentrated, accounting for approx. half of the aircraft and aircraft parts produced in Japan

AA strategicstrategic activityactivity involvinginvolving allall ofof Promotion of Further France,France, CanadaCanada andand otherother AsianAsian JapanJapan isis required,required, includingincluding thethe centralcentral Concentration and countriescountries promotepromote aerospaceaerospace industriesindustries andand locallocal governmentsgovernments andand privateprivate Functional Strengthening byby unitinguniting thethe efforteffortss ofof thethe governmentgovernment enterprises.enterprises. andand eacheach locallocal area.area.

 A major hub will be formed where all activities related to aerospace are promoted from R&D to design, flight tests, manufacturing, sales and maintenance, the first of its kind in Japan and to a degree that no newly emerged Asian countries can compete with. A 3rd Pole, equal to USA (Seattle) and Europe (Toulouse in France)

[Numerical Target] Volume of aerospace industrial production in Chubu Region: approx. ¥700 billion. (2010) to approx. ¥900 billion. (2015) Our goal is to achieve 5% annual growth to catch up with Toulouse in France (¥1 trillion).

Source: ‘Promotion of Aerospace Industry in Aichi’ (issued by Next Generation Industry Section of Department of Industry and Labor on May 7, 2012) 26 International Strategy Comprehensive Zone Ⅱ [Comprehensive Special Zone for Life Innovation "Mie"]

Overview ‘ Mie Medical Valley Project’ aims to develop regions which can provide high-quality products and services related with medical services, health and welfare, promoting the concentration and creation of the new leading industries strategically. This project was formulated by in 2002 and since Apr. of the same year, the collaboration of government, industrial, academic and private sectors have been conducting wide variety of projects as Mie Medical Valley Project. For the details, see the website, http://www.mvp.pref.mie.lg.jp/e/

We can offer the developing environment of medicine and Mie Life Innovation Promotion Center medical equipment to the entire  Mie LIP Central world.  Mie LIP 6 Regions’ Hub

-Development of exercise therapies using bikes and tourism resources - Research Development of Medical -Development of healthcare equipment, care support robots such as a robot suit HAL and peripheral equipment The collaboration between Mie LIP Systems using pedometers and -Development of medicine and functional Central and 6 regions’ hub creates blood pressure manometers food using research functions of innovative medicine and medical universities equipment.

-Development of medicine, - Technical support for cosmetics and high-functional food medical equipment using natural resources -Research development of seaweeds and welfare equipment manufacturers such as Toba –original “Shinju no - Development of functional food, -Utilization of medical information database, nanakusa” and seafood medicine and cosmetics support for R&D and support for the activities of regional hub

-Development of cosmetics and -Collaborative research and technical support functional food using deep seawater for medicine and medical equipment Total Medical and Owase cypress trees Information Coordination of R& D -Promotion of clinical research for -Nutritional treatment by clinical Database high blood pressure and diabetes Condition such as cancers, -Development of residential-type diabetes and kidney diseases Prefectural programs for restoration and using engineered food Gathering Medical Institutes Advancement of health Medical Information 27 Foreign-Capital Enterprises Promotion Scheme []

(1) Subsidy Program to Promote (3) Subsidy Program to Support R&D Investments in the Cutting-Edge st for the Creation of New Aichi Sectors of the 21 Century A subsidy to R&D and proving test activities To support large-scale investments, subsidies from Aichi Large enterprises: A half of project cost Prefectural Government are raised significantly. [One of the largest subsidies in Japan!] Up to ¥¥200200 millionmillion SMEs: Two thirds of project cost Up to ¥¥ 1010 billionbillion Plants: Within 10% of the investment amount Up to ¥100 million Laboratories: Within 20% of the investment amount ¥100 million Increased ratio and ceiling of the subsidies will apply to aerospace industries in International (2) Subsidy Program to Promote investments Strategy Comprehensive Zones for the Creation of New Aichi The Aichi Prefectural Government provides collaborated support with municipalities for reinvestments in Aichi and for establishment of new business facilities occupying the core of the supply chain Up to 10% of investment amount

Up to ¥¥ 11 billionbillion Note: The amount of reinvestments in Aichi collaborated with municipalities is the total of prefectural and municipal subsidies. 28 Foreign-Capital Enterprises Promotion Scheme []

PromotionPromotion SubsidiesSubsidies ProgramProgram forfor ForeignForeign--CapitalCapital

EnterprisesEnterprises LocationLocation inin GifuGifu Toki Aqua Silva Gifu-Minokamo Techno Park Subsidiary Targets: Land, Building and Machinery equipment

Up to Max.Max. ¥¥1billion1billion Yai Industrial Site Gifu is the only prefecture in the Tokai region Kakita Distribution-Industrial Site including Aichi and Mie that provides subsidies for land! It is possible to use combined with government subsidies.

Some municipalities in Gifu grants subsidies for employment and that can be used for payment of fixed assets. 29 Foreign-Capital Enterprises Promotion Scheme [Mie Prefecture]

One of the preferential treatments for the location of enterprises for 2013

◆ Subsidiary for mother plant project Subsidy Program for Foreign-Capital ・Target: Investment that leads to the establishment of a mother plant in the manufacturing field Project Promoting Asia Site ・Requirement:[Capital Investment] More than 0.5 bil Yen, and an increase to more than 10 staff members [HR transferring] With 50 HR staff members, transferring occurs A subsidy program for overseas enterprises to Mie ・Ratio of Subsidiary: pref. aiming for the ‘Asian Hub’ is newly acquired [Capital Investment] 15% of assets, limited 5 bil yen [HR transferring] Fixed amount of 75,000,000 yen buildings and machines. (Excepted for site acquisition) ◆ Subsidy Program to Support R&D facility ・ Subsidiary Targets: Construction of R&D Center or Testing & certification organization. ・ Investment requirement: Over ¥200 million ・ subsidiary ratio 20%20% ※ Over ¥100 million: Ise-shi, Shima-shi, Tamaki-cho, Watarai-cho ※ Over ¥30 million: Higashi-kishu, Toba-shi, Ohdai-cho, Minami- Ise-cho and Taiki-cho ・ Subsidiary ratio: 10% of invested assets amortization. ・ Up to ¥¥500500 millionmillion Up to ¥500 million ◆ Subsidy Program to Support Service industry ・ Subsidiary Targets: Advertising exchanges industry, lodging Introduction of a industry, information and communication industry, etc. ! ・ Investment requirement: Having a major impact on employment Mileage Program and overall economy. ・ Subsidiary Targets: Setting up office for sales and marketing, • If investment is less than the investment requirements of the corporate planning, finance, personnel. auxiliary, you can achieve the requirements by stacking ・Target examples: Theme parks, Hotels, Museums, Complexes, etc. investment (in points), and this is a program that makes it ※We also support setting up an office. possible to apply for the subsidy. ・Subsidiary ratio: 10% of invested assets amortization • In this program, Mie prefecture promotes the continued growth (Up to ¥100 million) of the company and re-investment in high value-added. Rental is 10% per year (3 Years) 30 Foreign–Capital Enterprises Promotion Scheme [Nagoya City]

Promotion Subsidies Program for location of Nagoya City Industry in 2013 (Rental/Ownership Type) A part of costs for acquiring or renting lands and buildings in Nagoya City to newly open to add an office, a factory, an R&D facilities is granted.

◆Subsidies for Promotion of Industrial Locations (Rental Type) Scope of the subsidies: Rent for land, buildings and machine and equipment (Excepted for those cases that rents only machine and equipment) Amount: Three month’s rent for land, buildings and machine and equipment (Or 6 month’s rent for an R&D facility) Up to ¥¥33 millionmillion per enterprise (Or ¥6 million for an R&D facility) ◆Subsidies for the Promotion of Industrial Locations (Ownership Type) Scope of the subsidies: Amount equivalent to fixed asset tax and city planning tax for land, buildings and machine and equipment newly acquired (Excepted for those case that acquires only machine and equipment) Amount: Three years’ taxes for an office and a plant (and five year’ taxes for an R&D facility) Up to TotalTotal ¥¥ 11 billionbillion // enterpriseenterprise 31 IndustrialIndustrial SightseeingSightseeing SitesSites inin GreaterGreater NagoyaNagoya

Kakamigahara Aerospace Science Museum Toyota Commemorative Museum (Kakamigahara City, Gifu Pref.) of Industry and Technology (Nagoya City, Aichi Pref.)

Yokkaichi Port Building (Yokkaichi City, Mie Pref.)

Setoyaki ceramic (Seto City, Aichi Pref.)

INAX Live Museum (Tokoname City, Aichi Pref.) Noritake Garden Craft Center(Nagoya City, Aichi Pref.) 32 SightseeingSightseeing andand CurtureCurture inin GreaterGreater NagoyaNagoya

Gero Hot Spring Ieyasu’s Warriors of the Aoi Crest

Source: Gifu Newspaper, June 30 2007 Edition Takayama Festival Shirakawa Village (The World Heritage) Nagoya Castle

Cormorant fishing at the Nagara River

Mikimoto Pearl Island

Korankei Gorge Ise Shrine Kumano Kodo pilgrimage routes Tezutsu Hanabi 33 (The World Heritage) ContactContact InformationInformation

Greater Nagoya Initiative (GNIC) will provide one-stop solutions for foreign-affiliated enterprises which plant to expand their business to the Greater Nagoya region. GNIC will help ensure your smooth entry into the region. When you need to make the right business decisions, the required information is available from GNIC. Please contact us if you are interested in Greater Nagoya.

Greater Nagoya Initiative Center (GNIC) Nagoya Center Building Annex 8F, 2-22 Nishiki, 2-chome, Naka-ku, Nagoya 460-0003 JAPAN Tel:+81-52-223-7340 Fax:+81-52-223-7341 URL: www.greaternagoya.org GREATER NAGOYA INITIATIVE Click !

National & Local Governments (National Government) ◆Chubu Bureau, Ministry of Economy, Trade and Industry (METI) International Affairs Division 2-5-2, Sannomaru, Naka-ku, Nagoya City, Aichi Pref. 460-8510 Tel: +81-52-951-4091 / Fax : + 81-52-961-7829

(Local Governments) ◆Nagoya City ◆Aichi Prefecture Aichi Prefecture Industry Exchange (←交流から労働に変更)Division Investment and Trade Division 3-1-1, Sannomaru, Naka-ku, Nagoya City, Aichi Pref. 460-8508 3-1-2, Sannomaru, Naka-ku, Nagoya City, Aichi Pref. 460-8501 Tel: +81-52-972-2414 / Fax : +81-52-972-4135 Tel: +81-52-954-6356 / Fax : +81-52-961-7693 ◆ Mie Prefecture ◆ Gifu Prefecture Gifu Prefecture Industrial Investment Promotion Office Business Investment Promotion Division 13, Kome-cho, Tsu City, Mie Pref. 514-8570 2-1-1, Yabutaminami, Gifu City, Gifu Pref. 500-8570 Tel: +81-59-224-2819 / Fax : +81-59-224-2221 Tel: +81-58-272-8371 / Fax : +81-58-278-2659 34