B4 THE JAPAN TIMES THURSDAY, JANUARY 23, 2014 Special Economic Reports

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Switzerland www.worldeyereports.com Celebrating a historic milestone: 150 years of Swiss-Japanese relations WEF 2014 stays ahead of the curve Q&A with Prof. Klaus Schwab, founder and executive chairman of the World Economic Forum he year 2014 marks a mile- stone for Japan and Swit- What can we expect from the with its young, entrepreneurial Tzerland: the 150th anniver- Our infrastructure, 2014 Annual Meeting? “millennials” from nearly 300 sary of the signing of the Treaty of The 2014 Annual Meeting city-based hubs worldwide. The Amity and Trade between the two will be held under the theme youth are greatly under-rep- countries. Thus began a relation- political stability “The Reshaping of the World — resented in global affairs, and ship of mutual trust and prosperity, and quality of life Consequences for Society, Poli- young people with great poten- after a group of Swiss watchmakers tics and Business.” We will take tial for future leadership need a landed on Japan’s shores in 1864. make a closer look at the profound global platform. The seeds of this relationship con- political, economic, social and Another institutional mile- tinue to bear fruit today. an ideal place for — above all — technological stone is the introduction of Japan is now one of Switzer- forces that are transforming our TopLink: an online platform for land’s most important trading FDI.” lives. Power is shifting from our members and constituents partners in Asia. Since the signing traditional to networked hier- to engage with each other be- of a free-trade agreement between — MARIE GABRIELLE INEICHEN-FLEISCH archies. Yet, the international yond our face-to-face meetings, Switzerland’s State Secretary the two partners, more economic community remains in crisis and thus ensure more seamless WEF agreements have been established for Economic Affairs mode — rather than strategi- multi-stakeholder cooperation. STATE SECRETARIAT OF ECONOMIC AFFAIRS (SECO) OF ECONOMIC AFFAIRS SECRETARIAT STATE Prof. Klaus Schwab aimed at promoting trade, open dia- / 123RF STOCK PHOTO HAPPYALEX cally driven — in the face of the logue, and employee benefits. The picturesque city of Zurich — considered the business center of forces creating global, regional What are some of your pre- In recent years Takeda, Mitsubi- Switzerland and industrial transformation. dictions for market trends in tural reforms to increase their shi Plastics, Toshiba, Nabtesco, Our aim is to develop the in- the global economy? competitiveness. and Citizen are just a few of the Schanzenbach, regional director for sums it up aptly: “All we have are The people of both sights, initiatives and actions I’m generally optimistic big Japanese companies that have Asia-Pacific at Switzerland Global our brains, education, and skill. Us- countries will once necessary to respond to current in my outlook on the global What business opportunities acquired Swiss firms. When asked Enterprise, the relatively small ing these to create products that we and emerging challenges. economy, but all individual pre- do you see between Switzer- about the motivations behind these Alpine country with a big global can export has always given us the again realize the dictions have limits. From the land and Japan? deals, Japanese Ambassador to footprint is ideal for businesses necessary pressure to be efficient What are some of the priori- numerous conversations I have Both countries have a highly Switzerland Ryuhei Maeda re- because of its geographic location. and effective, and at the same time importance they ties and future development had recently, I would single out developed technology sector, marks: “Swiss companies possess “We have easy access to the biggest not be complacent.” strategies of the World Eco- three key trends for the global and are driven by innovation to high tech and shares in some mar- markets in Europe,” he comments, One other key value that both na- have for each nomic Forum? economy to watch closely: 1) stay ahead of the curve. Swit- kets where Japanese companies are “while Japan is an ideal test market tions share is the prioritization of The World Economic Forum the quantitative easing of the zerland is a promising place in not competitive.” for many Swiss companies pen- long-term goals. “A Swiss company other.” is constantly evolving as an or- Federal Reserve with its link- which to invest — it was named “Companies do not establish a etrating Asia.” will not invest in Japan just to get ganization. One way to do this age to “Abenomics”; 2) China’s one of the most business-friend- foothold in Switzerland merely Similarities between these two profit in the next quarter or so, and is to invite fresh voices to chal- approach to reforming its bank- ly countries in Europe, and for tax purposes,” notes Heinrich nations have allowed their political the same is true for the Japanese in — RYUHEI MAEDA lenge us. ing sector; and 3) the political topped the World Economic Fo- Wegmann, president of the Swiss- and economic relationship to flour- Switzerland,” says Rudolf Minsch, For this reason I’m proud of will of EU member states to rum’s Global Competitiveness

Japanese Ambassador to Switzerland EMBASSY IN SWITZERLAND JAPANESE Japanese Chamber of Commerce ish. One such aspect is the uncom- interim chairman of Economiesu- our Global Shapers community: shoulder the necessary struc- Report for five years.  (SJCC). “They come because of the promising commitment of both the isse. “This explains the prevailing high quality of labor and technol- Swiss and Japanese to producing positive sentiment toward Japanese partnership. “More importantly, . ogy we have to offer.” goods of high precision and quality. acquisitions of Swiss firms.” now is the time for Swiss compa- Ambassador Maeda believes “Our infrastructure, political “Most Japanese people would be “It shows the Japanese way of nies to consider investing in Japan. that the celebration of the 150th Iconic tool is a 21st-century companion stability, and quality of life make ashamed of producing something approaching business,” says Paul The energy, environment, medi- anniversary this year will be a Switzerland an ideal place for FDI unsatisfactory for a customer,” ex- Peyrot, managing director of SJCC. cal, pharmaceutical industries, and welcome reminder of the value of he is worldwide bans on the sale of (foreign direct investment),” adds plains Ambassador Maeda. “We, “They are not corporate raiders but next-generation infrastructure this long-standing relationship. He one of the most iconic ob- the company’s pocketknives at Marie Gabrielle Ineichen-Fleisch, Japanese” can thus understand the strategic investors.” investment are attractive based concludes: “The people of both Tjects of the last century and airports and carrying them inside Switzerland’s state secretary for quite easily.” Political and business leaders on their growth potential and the countries will once again realize is beloved by millions of people planes. economic affairs. Bruno Chiomento, country man- from both nations are optimistic weaker yen,” says Koichiro Naka- the importance they have for each around the world. It has accom- Carl Elsener Jr., great-grand- And, according to Wolfgang aging partner of EY Switzerland, on the future of the Swiss-Japan mura, director general of JETRO in other.”  panied daring expeditions to the son of Karl Elsener and the cur- North Pole and Mount Everest, rent CEO of the family-owned and — in many recorded instanc- company, regards the period as es — even saved lives. Yet, few the most challenging time ever people would guess its humble for his company, and a defining beginnings. one as well. While the ban was Three ‘joys’ mark Swiss success Karl Elsener, founder of Vic- in place, greatly reducing sales VICTORINOX torinox, started producing house- of Victorinox’s signature product As the company expands its onda, the world’s largest mo- prise two separate companies — one impressive models in the coming hold knives in a small workshop around the world, the company product portfolio, they aim to torcycle manufacturer and for autos and one for motorcycles — years that will have features such as in the heart of Ibach, Switzerland, under Elsener Jr. undertook mea- continue embodying the Swiss Hthe second-largest Japanese until 2011. That year, the two were adjustable suspensions and automatic in 1884. In 1897, he created what sures to safeguard the jobs of its Army Knife’s original values carmaker, is in fact the world’s larg- merged into one in order to take alerts for drivers from roadside sig- would become his company’s employees. It even went as far as of high quality, functionality, est producer of internal combustion advantage of mutual synergies un- nals. We expect to appeal to a greater signature product: the “Swiss Of- to temporarily lend its workers to innovation and iconic design engines — producing more than 14 der the common denominator of the number of customers with our new ficer’s and Sport Knife.” other companies. million each year that are distributed Honda brand. “We took into consid- advanced technology features.” The invention — a simple “Because of this, we did not around the globe. eration the improvement of our brand The company’s technological edge multitool folding knife — be- dismiss a single employee,” he cuses on his people, his custom- In this year marking the 150th an- presence in Switzerland and decided in the Swiss market has been coupled came an instant favorite among proudly says. “Our company is ers, and his product cannot go niversary of diplomatic relations be- to work together more than before,” with its strategy of increased manu- Swiss soldiers. After World War like a family. We will always do wrong,” he explains. In 2000, tween Japan and Switzerland, Honda explains Hiroshi Nomura, president facturing in Europe to further reduce II, the knife became a huge suc- everything possible to guarantee the company established the Vic- is also celebrating its 40th year in the of the newly created Honda Motors the negative influence of factors such cess among American soldiers in our employees’ jobs.” torinox Foundation — a reserve Alpine country. Honda has been the Switzerland. as fluctuating Japanese yen exchange Europe as well, who dubbed it the Japan has the world’s largest fund consisting of Elsener family top-selling motorcycle brand in Swit- “Honda’s philosophy is to con- rates, and the earthquake and tsunami “Swiss Army Knife.” Victorinox number of Victorinox retail stores shares that cannot be rescinded. zerland for two years in a row and its tinuously improve itself to deliver the disaster in Japan of a few years back, soon adopted it as the tool’s of- and has always been an impor- “All employees, past and pres- total engine sales have already sur- highest quality with its cutting-edge which affected some production WER ficial name. tant market for the company. A ent, have built the value of the passed that of most other car brands. technology,” Nomura says. “Under plants there. “Most of our car models Hiroshi Nomura, president of Honda Motors Switzerland The company has seen its new variation of the Swiss Army brand,” says Elsener Jr. “These re- Honda in Switzerland used to com- this philosophy, Honda will introduce are now made in the U.K.,” he points share of challenges along with Knife, called the “Tomo” (which serves will guarantee the sustain- out. “This gives us the possibility of troduce in the spring,” he explains. its successes. But its most severe means “companion” in Japanese) ability of our long-term growth.” providing better prices for our Swiss “We would like to highlight an in- problem came in 2001, after the was recently released. Designed Today, Victorinox has products customers.” creased brand presence in Switzer- attacks on the World Trade Cen- by a Japanese creative team, it re- that run the gamut from timepiec- “What also makes us so success- land for all Honda vehicles and other ter and the Pentagon in the U.S. interprets the iconic design of the es and travel gear to fashion and ful in Switzerland is that Honda has products. We are interested in making The attacks, which had involved Swiss pocketknife into a simple fragrances. In order to unify these a history of making strong efforts to a breakthrough in Switzerland and the use of box cutters, resulted in distillation of Victorinox-inspired product categories, the company understand people’s needs and there- have much work to do in the coming the banning of any sharp objects simplicity, usefulness, and sus- launched its first global commu- by consistently satisfy their expecta- years. aboard planes — and that meant tainability within a Japanese con- nication campaign this year: por- tions,” Nomura continues. “This is a “ ‘Joy’ is the driving force behind text. traying each of its products as a unique philosophy that differentiates the Honda brand,” Nomura con- Elsener recalls attending a class “Companion for Life.” us from our competitors and it is to cludes. “The ‘3 Joys’ are part of the on “kaizen,” the Japanese philos- Elsener believes that the tre- this that we ultimately owe our suc- fundamental principles of the com- ophy of continuous improvement mendous task of unifying its cess. In Swiss society, quality ex- pany. They are inseparable, and refer applied to business and produc- products under one philosophy is pectations are very high, but we are to: the satisfaction of produ cing great tion, as a great influence to how achievable due to the mentorship always able to meet the expected products, the pleasure of selling them, he approaches his work. “What- of his father. “I worked with him quality standards. This is why we are and the gratification felt by customers ever we do, we try to be innova- in the same office for more than well accepted here.” during their years using Honda prod- tive and we use the Swiss Army 30 years,” he relates. “I miss him Nomura looks forward to the in- ucts. Only this positive experience, Knife as our inspiration,” he says. and I am convinced he still helps troduction of impressive new vehicle shared by all, gives Honda the right to He refers to his late father, Carl me make the right decisions.” In features this year. “We still see room exist: in Switzerland and everywhere VICTORINOX Elsener Sr., as an important role the world of Victorinoix, every- for improvement in our cars and else in the world.”  Carl Elsener Jr., CEO of model. “My father always told one needs his own “tomo.”  we’re developing new models to in- www.honda.ch Victorinox me that an entrepreneur who fo- www.victorinox.com

Financial innovation stands on stable Swiss base nion Bank Privee (UBP) adapted to our clients’ needs. We 2011. The same year, it broadened ents, and to carve out new avenues is one of the most highly indeed have a strong entrepreneur- its operations throughout Asia by in Europe, the Middle East, Asia, Ucapitalized private banks ial spirit.” establishing two joint ventures, in and Latin America.” in Switzerland and a major player UBP offers a wide range of ca- Taiwan with Taiwan’s TransGlobe Notably, UBP sees Japan as a in the field of wealth management pabilities in asset allocation, includ- Life Insurance group, and in Hong very important market, full of po- with over $85 billion in assets. It ing equities, bonds, commodities, Kong. tential. “We have a very strong has achieved this through strategi- as well as diversification strategies Acquisitions continued in 2012 team in our Tokyo office,” says de cally adapting to new paradigms as within alternative investments. “We with the purchase of the Paris- Picciotto. “From there, we provide a result of the global financial crisis. are a full-scale wealth management based hedge fund specialist, Nexar creative investment banking solu- “After the crisis began, realizing bank focused on performance and Capital Group, which has offices tions, tailor-made for institutions the profound changes that were innovative investment solutions across Europe and in the United throughout Japan. Our focus lies under way in the financial arena, for private and institutional clients States. In May 2013, UBP an- especially on offering high-yield we shifted our focus accordingly, alike,” he says. nounced the acquisition of Lloyds products to Japanese investors.”

reorganizing our business model By adopting a conservative ap- Banking Group’s international pri- Encouraging investors to take UBP and investment offerings for our proach to risk management, UBP vate banking business, thereby bol- advantage of Switzerland’s unique Guy de Picciotto, CEO of UBP clients,” says Guy de Picciotto, has maintained a solid financial stering its influence in the wealth offering, particularl y with regards CEO of UBP. “We completely re- base and a strong balance sheet management industry. to private banking, de Picciotto “Political stability and security organized our activities, found new with high-level liquidity, allowing “Looking ahead,’’ says de Pic- highlights, “Switzerland is a coun- coupled with the best know-how in ways to invest, and refined suc- it to actively pursue growth. ciotto, “our future strategy is to try with no debt, it enjoys a sound banking makes UBP unique in our cessful strategies and high-level UBP acquired the Swiss subsid- continue developing innovative economy, as well as stability and league.”  performance investment solutions iary of Dutch bank ABN Amro in products and solutions for our cli- security in our market,” he says. www.ubp.com

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Switzerland www.worldeyereports.com Sustainable coffee for Asia’s demanding consumers Around the world in 108 years, and counting… olcafe knows its coffee in Japan for nearly 90 years, ers,” he adds. “We are active stablished by Alfred Kuoni Japanese market, and its loyal clients ized on its Swiss roots by commit- he notes. In 2011 the group acquired and you can smell the dating back to the Taisho Era,” in programs that help coffee in 1906 in Zurich, the Kuoni here. ting itself to providing quality and the independent travel specialist, Varoma as you walk into explains Volcafe’s regional di- communities boost yields in an EGroup prides itself on being a “Japan is an extremely important innovative services, and its “global Gullivers Travel Associates, which its offices. “We taste dozens of rector for Africa, Asia, and the environmentally and socially global travel-related service provider market for us,” says Rolf Schafroth, localization” has proved to be its has had years of experience in Web- batches daily to make sure every Pacific, Peter Moser. “In fact, friendly way.” operating in every continent in the CEO of Global Travel Services. “In main advantage. “Although we are based services. Schafroth believes bean we buy or sell is up to stan- we are the oldest foreign com- “We invest in getting to know world. With over 12,000 employees the Group Travel segment, Japan proud of our Swiss heritage, we are that Kuoni’s ability to stay flexible dard,” discloses the company’s pany in the industry in Japan.” a country and we do not impose around the globe, the Kuoni Group is our most important market. In not merely a Swiss-based company,” and its unrelenting commitment to its managing director, Jan Kees van Volcafe’s long-term presence but work together with farm- caters to three main market seg- fact, the country is the largest single says Schafroth. “In Japan, we are a suppliers during times of distress are der Wild. “We examine every- has proven a boon as Japan and ers,” van der Wild emphasizes. ments: destination and accommoda- source of business for the Kuoni Japanese company. In the U.S., we the keys to its 108-year success. thing: from the coffee variety the rest of the Asian region grow “Volcafe is not just about num- tions services, tour operations, and Group as a whole.” are a U.S. company, and so on.” Schafroth is positive on the future to the ‘cup’ (industry slang for into increasingly important cof- bers and the ‘bottom line’ but visa processing. The key to managing such a rela- The 21st-century travel industry of the travel industry in Japan. “We taste).” It is no wonder Volcafe fee markets. “While coffee con- also about promoting market dy- The group first arrived on Asian tionship is summed up by Schafroth: possesses its fair share of challenges are very proud of our relationship has been a reliable partner for sumption worldwide is growing namism and studying behavioral shores in 1963 when it opened a “We are local where the customer is and the Internet — in particular — with the Japanese,” he says, “and as major coffee roasters and multi- 2 percent to 3 percent per year, trends in coffee consumption.” branch in Tokyo. For the last 50 located and we are local where the has proved to be a major hurdle for long as we are open, there will always national brands globally. it is in double digits in Asia,” The company’s philosophy is years, Kuoni has developed and supplier is located.” travel companies such as Kuoni. “It be opportunities for our clients.”  Founded in — says van der Wild. “Japan in evident in its Japanese opera- enhanced its relationship with the The Kuoni Group has capital- has changed everything irreversibly,” www.kuoni.com northeast of Zurich — in 1851, particular is a very dynamic tions. “The Japanese have a very Volcafe now has a presence in and high-end market. We see it distinct culture and our Japanese over 90 percent of the world’s as a growth area, with Japanese office has helped a lot in under- VOLCAFE coffee-producing and consum- consumers leading the region in standing this,” Moser adds. “We Peter Moser, regional director Independent advice for the new breed of investor ing territories worldwide. To- their love of better quality spe- are happy with our business for Africa, Asia and the Pacific day, it is part of the leading agri- cialty coffees.” there. It is stable and not price- of Volcafe s foreign investors explore standing and local expertise, the firm making sure that the relevant regula- firm’s clients include high-net-worth cultural commodities merchant, Volcafe’s sustainable ap- driven. Once you’ve built up opportunities in Switzerland, pays close attention to its private and tory and compliance aspects are met, individuals, families, companies, fi- London-based ED&F Man. proach and strong relationship trust with Japanese clients and celebration of its 230th anniver- Athe search for a trustworthy corporate clients’ strategies, and ad- in addition to the investment-driven nancial institutions, and law firms. In Japan, Volcafe’s products with coffee growers gives it partners, you can expect a long- sary this year, while retaining wealth and investment management vises them accordingly. success factors,” says Adrian Escher, “That’s what differentiates us have been widely accepted ever unparalleled access to the finest lasting relationship.” its clientcentric and localized firm is often one of the first steps to The now independent firm was the company’s CEO. from other companies,” Escher since consumers were first in- coffees worldwide. “We provide As an integral unit within the approach as it expands in Japan take upon setting foot in the Swiss originally founded as a subsidiary of Before heading Kendris, Escher notes. “We give a high priority to troduced to coffee around the ways to make coffee-growing centuries-old ED&F Man group, and the rest of the world.  market. It is needed to provide excel- KPMG Switzerland in 1999, but its was a partner at KPMG Switzerland, project management, that invest- late 19th century. “We’ve been more profitable for the farm- Volcafe is participating in the www.volcafe.com lent tax and legal advice to make the roots go back more than 100 years where he developed markets in Asia, ments and business plans can be im- initial steps smooth and accurate. when a group of Swiss entrepreneurs the Middle East, Eastern Europe, plemented with high precision, and Kendris, headquartered in Zurich formed Fides Treuhand-Vereinigung and Scandinavia. an understanding of the cultural and and with branch offices in Aarau, in 1910. “Clients that are planning to invest business expectations of Japanese , Geneva, , and Lu- Kendris has acquired a keen un- normally ask a lot of questions,” he clients vis-à-vis their Swiss advisor. Streamlined services for clients in cerne, is one such leading Swiss derstanding of Japanese business, explains. “We guide them personally We have a fundamental understand- provider of family office, trust and having serviced Japanese and inter- through all steps of their projects and ing of critical topics that are relevant fiduciary services, tax and legal ad- national investors’ overseas activi- take positions in their investment- to Japanese business partners.” world’s financial strongbox vice — as well as accounting and ties for years. “We are able to build a holding structures to ensure that they “Switzerland has many opportu- outsourcing services, among others. bridge between the investor’s coun- run smoothly, and in compliance nities for investors to explore,” he djusting to the new Mizuho Bank Switzerland is er generation, I expect our With its international market under- try and its investment destination, with all relevant laws and regula- says. “It is a hugely attractive place needs of today’s corpo- a fully owned subsidiary under business to grow to meet the tions. We are always asked multiple for innovation, research and devel- rate and retail customers, the Mizuho Financial Group. needs of younger people who questions by our clients, and we opment. We welcome foreign inves- A  Mizuho — the leading Japanese Within the global group, it is a will take a more active interest patiently listen to each and every tors to this region.” global financial services group unique entity focusing on the in investments,” he explains, one before offering solutions.” The www.kendris.com — has reorganized its corporate private banking business. “and Mizuho Bank Switzer- Switzerland has many structure. It has created a single “We have a 42-year history land has its state-of-the-art bank, a single trust bank, and a in Zurich,” says Takai, from his infrastructure to provide more opportunities for single securities unit under its office in the heart of the Swiss flexible services for these de- new slogan of “One MIZUHO.” city’s financial district. “In the manding clients.” investors to explore. It is Its aim is to provide clients with early 1990s, there were 40 Japa- “We employ people of eight WER a hugely attractive place a wider range of seamless finan- nese financial institutions here. different nationalities, which al- Iwao Takai, president of Mizuho cial services through banking- Today, only Mizuho and another lows us to serve a diverse range Bank Switzerland for innovation, research trust-securities collaboration firm remain.” of customers better,” Takai con- and mutual cooperation among Taking advantage of Switzer- tinues. “Wealth and asset man- and development. its group companies. land’s universal banking system agement are growing, and we prestigious and respected Japa- “We put a high value on ‘Cus- (a true one-stop banking sys- are here to offer our services to nese financial services groups We welcome foreign tomers First,’” says Iwao Takai, tem), Mizuho Bank Switzerland clients.” operating worldwide, Mizuho president of Mizuho Bank Swit- offers not only banking services Mizuho’s long-standing his- Bank Switzerland remains com- investors to this region.” zerland. “This ‘One MIZUHO’ but also investment products to tory in Switzerland is a testa- mitted to Switzerland, while structure will allow us to serve its mainly Japanese and Asian ment to the company’s dedica- remaining a contributing force our clients better by construct- high-net-worth clients. tion to its customers and its trust to the prosperity of the global — ADRIAN ESCHER ing a one-stop channel to our “As wealth shifts from the in the Swiss banking system. As economy.  CEO of Kendris KENDRIS coordinated financial services.” older generation to the young- a member of one of the most www.mizuho.ch

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