JAPAN Doing business in Japan Setting up a

JAPAN Doing business in Japan Setting up a presence in Japan

Japan: area comparisons with selected countries • • • USA China France Japan Germany Italy • Switzerland 9, 629, 091 sq. km. 9, 596, 960 547, 030 377, 835 357, 021 301, 230 41, 293

Japan: population comparisons with selected countries (2015) Population • • Japan Germany Italy Switzerland China France USA [Metropolitan] 127, 387, 000 81, 757, 600 60, 200, 060 7, 866, 500 1, 386, 560, 000 62, 793, 432 324, 080, 000 Density 337 229 200 191 144 114 33 Source. UN

Some other facts about Japan Islands 6, 852 Japan coastline 29, 571 km Active volcanoes 108 Mountains + forests ~ 70% of the total area Tokyo [agglomeration]: 37 million inhabitants Tokyo Int’l airport: 38 million passengers / year [world 5 th longest] [world largest metropolitan area] [world 5 th busiest]

Japan political system: Constitutional monarchy

Japan in the world politics Japan is member of all important international organizations, such as - UN G 7 G 8 G 20 APEC WTO

Japan economy

Japan: GDP in billion US$ comparisons with selected countries [2016] • • • • 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. USA China Japan Germany U. K. France India Italy Brazil Canada 19. Switzerland 18, 569 11, 199 4, 939 3, 466 2, 618 2, 465 2, 263 1, 849 1, 796 1, 529 659 Source: World Bank.

Japan GDP PPP US$ per capita selected countries 2016 (estimated) 1. 2. 3. * 7. * 16. * 20. * 23. 24. * 66. * 134. Luxembourg 102, 831 Switzerland Norvay 78, 813 USA 57, 467 70, 813 Germany Japan 41, 936 38, 895 France Italy 36, 855 30, 527 China 8, 123 India 1, 709 Source: IMF.

Japan: a major importer and exporter [billions of US$ - 2016 estimated] World leading exporters: World leading importers: 1. China 2, 011 2. USA 1, 471 3. Germany 1, 283 4. Japan 5. South Kora 6. France 7. Hong Kong 1. USA 2, 205 2. China 3. Germany 987 4. Japan 5. U. K. 581 6. France 7. Hong Kong 16. Switzerland 301 641 509 505 487 19. Switzerland 243 1, 437 629 525 509

Japan: one of the most competitive economy in the world Global Competitiveness Index 2016 -2017 World Economic Forum

Japanese companies: among the main investors FDI outward stocks 2015, in billion US$ 1. 2. 3. 4. 5. 6. 7. 8. 9. USA Germany U. K. China & HK France Japan Switzerland Canada Netherlands 5, 982 1, 812 1, 538 1, 485 1, 314 1, 226 1, 138 1, 074 Source: UNCTAD .

Recent economic data Inflation rate [as of June 2017] 0. 4% Unemployment rate [as of June 2017] 2. 8% Unemployed persons [June 2017] 1, 890, 000 Annual GDP growth March 2017 1. 3%

Switzerland Japan

Swiss Japanese Residents Tourists 9, 000 Japanese citizens live in Switzerland. 300, 000 Japanese tourists visit Switzerland per year. 1, 500 Swiss citizens live in Japan. 33, 150 - Swiss tourists visited Japan in 2014 - +17% versus 2013 [Source: Japan National Tourism Organization] Sister cities: Source: Japan Embassy, Bern. Japan Kutchan-cho Matsumoto-shi Ueda-shi Otsu-shi Nagaoka-shi Koumi-machi Nanto-shi Shinagawa-ku Chiba-shi Shimada-shi Kagamino-cho Myoko-shi Shinshiro-shi Hakone-machi Nara-ken (Hokkaido) (Nagano) (Shiga) (Niigata) (Nagano) (Toyama) (Tokyo) (Chiba) (Shizuoka) (Okayama) (Niigata) (Aichi) (Kanagawa) Schweiz St. Moritz Grindelwald Davos Interlaken Romainmotier-Envy Wengen Arosa Geneva Montreux Brienz Yverdon les Bains Zermatt Neuchâtel St. Moritz Kanton Bern (Graubünden) (Bern) (Vaud) (Bern) (Graubünden) (Geneva) (Vaud) (Bern) (Vaud) (Valais) (Neuchâtel) (Graubünden) Jahr 1964 1972 1976 1978 1986 1988 1991 1996 1998 2005 2014 2015

Switzerland - Japan IMPORTS AND EXPORTS 1985 – 2016 SOURCE: SWISSIMPEX

250. 0 200. 0 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 SWITZERLAND - JAPAN TRADE 1985 - 2016 400. 0 350. 0 300. 0 EXPORT S IMPORT S 150. 0 100. 0 50. 0

Switzerland – Japan 2016 • CH exports to Japan • CH imports from Japan • CHF 7, 299, 316, 166 • CHF 2, 999, 998, 410 • Vs 2015: + million CHF 928 • - 2. 7% vs. 2015 • Vs 2015: + 14. 6% • • Source: Swiss Customs Administration, 3003 Bern www. swiss-impex-admin. ch [Switzerland 7 th main export market] Trade balance [in favor of Switzerland]: CHF 4, 299, 317, 756 3 rd largest after: 1. USA 17, 209, 686, 306 2. UK 5, 039, 034, 611

Switzerland – Japan Imports and exports 2016 - million CHF Swiss exports to: Swiss imports from: • • • Total 210, 715 1. Germany 39, 692 2. USA 31, 454 3. France 14, 008 4. Italy 12, 694 5. UK 11, 432 6. China 9844 7. Japan 7, 299 • • Total 173, 202 1. Germany 48, 551 2. Italy 16, 699 3. USA 14, 243 4. France 13, 427 5. China 12, 276 6. Ireland 7, 638 7. Austria 7, 599

Main imports – exports [2016 - million CHF] Main exports CH => Japan • Pharmaceutical products [30] 3, 098 • Clocks and watches [91] 1, 262 • Pearls, precious metals and stones, jewellery [71] 828 Main imports Japan => CH • Pearls, precious metals and stones, jewellery [71] 915 • Vehicles [87] 662 • Pharmaceutical products [30] 413 • Optical, precision, medical and surgical products [90] 647 • Nuclear reactors, machinery and mechanical appliances 399 [84] • Nuclear reactors, machinery and mechanical appliances [84] 459 • Electrical machinery & equipment [ 85] 266

Swiss trade balances 2016 total and selected countries [million CHF] Total 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. USA UK Japan Hong Kong Canada Saudi Arabia Belgium United Arab Emirates Australia South Korea China Italy Ireland Germany 37, 513 17, 210 5, 039 4, 299 3, 722 2, 685 2, 098 2, 858 2, 220 2, 037 1, 979 - 2, 433 - 4, 006 - 6, 628 - 8, 860 Source. Swissimpex

Switzerland – Japan Foreign direct investments [2014 / 2015. Source: SNB] Swiss investments in Japanese investments in Switzerland • Capital stock CHF • Jobs • Capital stock CHF • Staff 9, 379 mio 34, 741 11, 846 mio 9, 800

Mergers & acquisitions CH < = > JP [examples : 2011 - 2016] Acquisitions by Japanese companies • SA • Acquisitions by Swiss companies July 12, 2016 Tanaka Holdings > Metalor Technologies Int. • Credit Suisse » HSBC private banking in Japan May 26, 2016 Citizen > Frédérique Constant SA • • Takeda Pharm. > Nycomed AG • Nabtesco > Kaba Gilgen • Toshiba Gyr • Citizen > Prothor Holding • Tico (Toyota) > Uster AG • Tokyo Electron Ltd > Oerlikon Solar • Fuji Seal International Holding AG » Clay and Company Ltd • Roche » Bid of US$ 10 bn for full control of Chugai > Landis + > Pago DKSH • Dukascopy Bank » [2015] » Acquired 100% of Alpari Japan K. K.

Switzerland – Japan: a long story

Switzerland-Japan: long relations at highest level February 06, 1864 February 03, 2014 Signature of the first Swiss-Japanese friendship and trade agreement. Swiss President Didier Burkhalter meets with Japan’s Emperor Akihito and Empress Michiko at the Imperial Palace in Tokyo. Picture: Swiss delegation arrives at Yokohama on April 27, 1863

Switzerland - Japan Agreements and conventions

Tokyo: February 19, 2009 Swiss minister Doris Leuthard and Japanese Minister Hirofuma Nakasone signed the Free Trade and Economic Partnership Agreement between Switzerland Japan

www. seco. admin. ch/dokumentation/publikation/00008/00023

Japan-Switzerland Free Trade and Economic Partnershi Agreement www. sge. com/sites/default/files/JSFTEPA_EN_0310_0. pdf Contents: - Major elements of the agreement - Trade in goods - Technical regulations, standards - Trade in services - Movement of persons for business purposes - Electronic commerce - Investments - Intellectual property - Government procurement - Appendices - Addresses -. .

Protocol amending the Convention between Japan and Switzerland for the avoidance of double taxation with respect to taxes on income Source: Ministry of foreign affairs of Japan. “The Protocol amending the Convention between Japan and Switzerland for the Avoidance of Double Taxation with respect to Taxes on Income” (the Amending Protocol) was signed on 21 May, 2010, in Bern (Switzerland) between - His Excellency Mr. Ichiro Komatsu, Ambassador Extraordinary and Plenipotentiary of Japan to Switzerland, and - His Excellency Mr. Hans-Rudolf Merz, Head of the Federal Department of Finance. ……. . Source: www. admin. ch

Valid from March 01, 2012. 0. 831. 109. 463. 1

Other agreements Versions françaises Deutsche Fassungen • Accord du 10. 07. 2007 entre le Conseil fédéral suisse et le Gouvernement du Japon relatif à la coopération scientifique et technologique. • Abkommen vom 10. 07. 2007 zwischen den Schw. Bundesrat und der Regierung von Japan ueber die wissenschaftliche und technologische Zusammenarbeit. • Ordonnance de l’OSAV du 30 mars 2011 sur l’importation de denrées alimentaires originaires ou en provenance du Japon. • Verordungn des BAG ueber die Einfuhr von Lebensmittenl mit Ursprung oder Herkunft Japan

What is JETRO? JETRO: Japan External Trade Organization u Established in 1958 u Government-related organization Main activities: u Assisting foreign businesses in Japan u Supporting the overseas business of Japanese firms u Facilitating economic growth in developing countries through trade promotion Copyright (C) 2014 JETRO. All rights reserved. 41

Setting up a presence in Japan? Many questions … • Legal forms / requirements • Human resources • Market regulations • Taxation • Location • Cost estimation • … and many others • Talk to JETRO first!

• Market and industry information • Establishing an office • Cost estimates • Taxation, labor and legal issues • Requesting Deregulation • Translation of subsidy application • Information on incentives from national and local governments • Information on relevant legal systems • Networking with potential business partners • Finding human resources • Finding an office location • Arranging meetings with government authorities －Free individual consultation for your company－ － Temporary office space offered free of charge－

JETRO Invest Business Support Centers

Why doing business in Japan? Why investing in Japan ? Many reasons =>. 3 rd most important market of the world. Large population with high purchasing power. Location in growing Asia - Pacific economic area. Favorable business climate foreign investors. . The positive experiences of foreign-affiliated companies already established in Japan.

Survey conducted - between April 12 – 21, 2017 - by 10 foreign chambers of commerce and business organizations in Japan - 296 valid replies (29 of them from members of the Swiss Chamber of Commerce and industry in Japan. - full report at www. fcc. or. jp/fcij_survey 171. pdf

FCIJ Business Confidence Survey Spring 2017 Strategies of foreign-affiliated companies in Japan:

Switzerland – Japan Cultures: big differences Japan: - Hiragana - Katagana - Kanji Western world: - one alphabet - 26 letters A B C D E F G H I J K L M N O P Q R S T U V W X Y Z 46 46 1006 primary school

but also some similarities, such as hard working … Source: Japan Embassy, Bern

and safe places

Japan total inward FDI by country • Main FDI sources 1. USA 2. Netherlands 3. France 4. U. K. 5. Singapore 6. Switzerland 7. Cayman Islands 8. Taiwan 9. Luxembourg 10. Germany US$ million [1996 - 2016] % of total 59, 859 32, 450 28, 615 19, 318 18, 875 11, 053 10, 241 9, 386 7, 257 25. 18 13. 65 12. 04 8. 13 7. 94 4. 65 4. 31 3. 95 3. 12 3. 05 Total Top 10 204, 464 86. 01 World 237, 729 Source: www. jetro. go. jp/en/reports/statistics/ 100. 00

Swiss-owned companies in Japan • • ABB K. K. Actelion Pharmaceuticals Japan Ltd Bally Japan Ltd Bühler K. K. Clariant (Japan) K. K. Credit Suisse Securities (Japan) Ltd DKSH Japan K. K. Egon Zehnder International Co. Ltd

• • • Franke Japan Inc. Givaudan Japan K. K. Habasit Nippon K. K. Hiestand Nippon Co. Ltd Hilti (Japan) Ltd La Pairie Japan K. K. Lombard Odier (Trust) Ltd Lonza Japan Ltd Maxon Japan Corporation Nestlé Japan Ltd

• • • Nihon Firmenich K. K. Novartis Pharma K. K. Panalpina World Transport (Japan) Ltd Pictet Asset Management (Japan) Ltd Reishauer K. K. Richemont K. K. Roche Diagnostics K. K. Rolex (Japan) K. K. Sika Ltd Straumann Japan K. K.

• • Sulzer Metco (Japan) Ltd Swiss Re International Japan Branch Swissôtel Nankai Osaka Syngenta Japan K. K. The Swatch Group (Japan) K. K. UBS Group Victorinox Japan Inc. Zurich Insurance Company Ltd Japan Branch • and more than 100 other companies • and you soon ?

Decision to facilitate the establishment of foreign-owned subsidiaries in Japan [March 16, 2015]

Opening of the Tokyo One-Stop Business Establishment Center [April 01, 2015]

For more details about our services and to download our brochures and reports, please visit our web sites: JETRO headquarters, Tokyo www. jetro. go. jp JETRO Switzerland, Geneva www. jetro. go. jp/switzerland or, even better, contact us at JETRO SWITZERLAND Rue de Lausanne 80 -82 1200 Geneva 022 732 13 04 or directly: Albert Maillard Mobile: +41 79 230 24 25 albert. maillard@bluewin. ch Thank you for your attention