Invest in Japan

Dr. Jan SiemonsManaging Director NCH

Utrecht, 9 July 2015

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Content

Introduction NCH

Netherlands - Japanese Businesses

The Japanese Business Environment and opportunities for Dutch companies

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Introduction Jan Siemons■ CEO NCH as from 2012

■ 35 Business Councils

■ Chairman NCH Japan Business Council

■ Former Partner Ernst & Young, founding father and CEO International Location Advisory Services within EY

■ PhD on comparison Japan and The Netherlands

■ Embassy and NFIA Tokyo 1988-1995

Who are we? Worldwide network

Some business partnersSome sponsors

Trusted since 1946

• Private organisation founded in 1946 by and for the Dutch business community

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• A worldwide network of knowledge, experience and contacts

By Dutch Entrepreneurs, For Dutch Entrepreneurs

Focus on providing YOU with the most accurate and up to date PRACTICAL information about Japan

Matching your business with potential Japanese counterparts

Helping you to start a successful business in Japan

NCH Japan Business Council

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Tomorrow’s Location factors

WorkforceTalent supply

Innovation capabilities

Educational capabilities

Workforce mobility / brain gain

Workforce flexibility

Competitive unit labors cost

BusinessGrowth market

Strong growth fundamentalsLow government involvement and cost

Global competitive regulationStable government (financing)

Tax effective

Attractiveness Life style attractivenessMigration and expat politiesAttractive Tax systemInternational schoolsGood health careLow crime rateGood housing market conditions

Geographic

Strong cluster eco-system

Proximity to competitive market

Access to talent supply

Mobility infrastructure

High tech infrastructure

International connected economyGrowth,Talent,

Flexibility

© NCH

Five factors can make the difference

Branding country: positioning a country in the market

People: labour climate (e.g. graduates, people (talent)

Know-how : quality of know-how & suppliers, technology(leading institutes, etc.)

Connectivity: ease of access (physical and non-physical infrastructure) and accessibility

Tax rulings: the effective corporate tax

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Strategic location within Europe: global accessibility, excellent infrastructure

Competitive fiscal climate: attractive international tax planning options

Strong logistics and technology infrastructure: one of the most ‘wired’ countries in the world, a dynamic force in electronic commerce, cable and digital communication systems

International business environment: international outlook and openness to foreign cultures/investment is firmly ingrained in the Dutch culture

NL Proposition for Japanese Entrepreneurs

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Solid workforce: highly educated, flexible, motivated and multilingual workforce

High Quality of life: high standard of living and quality of life

Innovation environment: open innovation approach and well organised public-private partnerships for business creation

NL Proposition for Foreign Entrepreneurs

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The Netherlands is one of the most attractive countries to invest in

Key Indicators Japan

GDP : 4.901 USD Billion (Jan 2014) GDP Growth Rate : 1% (Mar 2015) Unemployment Rate : 3,3% (Mar 2015) Export : 5,740 JPY Billion (May 2015) Import : 5,956 JPY Billion (May 2015) Balance of Trade : - 216 JPY Billion (Mar 2015) External Debt : 340,373 JPY Billion (Mar 2015) FDI : 10,850 JPY Hundred Million (April

2015)

Source: tradingeconomics.com

Key Indicators Japan, cont

Source: ING Country Trade View, 2014

Comparison Japan – The Netherlands

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Institutions

Infrastructure

Macroeconomiccondition

Healthe &Primary

education

HigherEducation

Goods marketefficciency

Labour marketefficiency

Financialmarket

development

Technologicalreadiness

Market size

Businesssophistication

Innovation

Competitiveness AnalysisSource: WEF, Global competetivenss Index 2014-2015

Netherlands Japan

GCI ranking: Japan: 6 The Netherlands: 8

Japan has a large and well developed market and is one of the most innovative countries in the world

Ageing of society is a big issue

Macro-economically, Japan is still struggling from the Tsunami and consequential energy issues

The Abe administration’s policy is to attract $ 300 bln FDI into Japan by 2020. Key policy aspects are: reduced corporate tax rate, free-trade agreements, expanding regional trade, and encourage inward investments

Japanese companies invested substantial capital in international markets over the past years. Outbound FDI rose by 10% to $136 billion in 2013 (mainly in USA)

Japan FDI Development

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15,5

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2013 2014 2015 2016

Inbound FDI in Japan in $ blnSource: World Investment Report

Abenomics is accelerating the integration of the Japanese economy with other international economies. Dutch entrepreneurs should take advantage of the current conditions and the “Select Japan policy”.

Potential Markets: Japan is a highly developed country and is transforming its agricultural sector, which offers opportunities to the Dutch agro/food, life science, creative industry and horticultural sectors. In addition, there are concrete opportunities in 3R (reduce/reuse/recycle)

related businesses, e-commerce, healthcare, cybersecurity, personal image products (European fashion and “nice to have’s”), gaming, energy, and healthy ageing. Untapped potential for Dutch companies is substantial.

Supportive Economic Policies: policies have become friendly for foreign investors and Japan has an excellent infrastructure

Innovative: Japan is known for advanced technologies and products; Japanese universities and companies are highly involved in advanced research and development

Top Companies: Many global Japanese leading innovative companies, many with a high level of technological standards and often cash rich

Summarising: Why Japan?

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Potential Gateway to Asia: Japan could make use of its business experiences in the West and Asian countries

Purchasing Power is high, while -in some sectors- the cost structures for doing business (e.g. labor, facilities, tax, and logistics) have become more attractive than in some major cities in Asia

Skilled Workforce: Japanese are very skilled, hardworking, loyal and committed

Safe and attractive Working and Living Environment -clean urban environments, effective social systems and crime-free environments

Japanese like Holland, which was –amongst others- expressed in a unique way during the Netherlands Economic Mission to Japan in October-November 2014. Successful Holland Branding; need for better Japan Branding in Holland.

Summarising: Why Japan?

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Netherlands Council for Trade Promotion (NCH)

Prinses Beatrixlaan 7122595 BN Den Haag, The NetherlandsPO Box 102501 CA Den Haag, The Netherlands

Telephone: +31 (0)70 344 15 44www.handelsbevordering.nl

NCH The Hague

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