Outline of Survey of Trends in Business Activities of Foreign Affiliates
Outline of the Survey
1. Purpose of the survey
The purpose of the Survey of Trends in Business Activities of Foreign Affiliates is to
understand the business trends of foreign affiliates in Japan to help push forward the country’s
industrial and trade policies.
2. Survey target
The survey covers companies that will satisfy the following conditions by the end of March
2011, or have satisfied the following conditions during 2010.
(1) A company in which more than one third of shares or holdings is owned by foreign
investors.
(2) A company funded by a domestic company (in Japan) in which more than one third of
shares or holdings is owned by foreign investors, in which the total ratio of the foreign
investors' direct and indirect investment is more than one third of the shares or holdings of the
company concerned.
(3) Companies that fall under 1) or 2) above, in which the principal foreign investor's direct
investment ratio is more than 10%.
(Note 1) Beginning with this year's survey, it will cover not only indirect investments through
holding companies, but it will also cover indirect investment from all Japanese domestic
companies including business corporations.
(Note 2) In this survey, the term "foreign investor" refers to non-resident individuals,
companies and other groups established conforming to foreign laws; or companies and other
groups with its headquarter located overseas.
(Note 3) Direct investment ratio means the ratio of a foreign investor’s shares or holdings to
the total capital. Indirect investment ratio means the ratio of investment in a holding company
by foreign investors multiplied by the ratio of the holding company’s investment in the
company in question.
3. Date
The survey was conducted on August 5, 2011, in connection with the business results for FY
2010 and the end of FY 2010.
4. Number of respondents
Respondents:
3,501 (3,312 in the previous survey)
Response rate: 62.8% (62.4% in the previous survey)
Instructions for Use
1. Definition of regions
Unless otherwise specified, for the purpose of this survey, region of origin refers to the country
or region where the foreign investor is located.
2. Classification of industries
The industrial classifications used in the survey are based on the Japan Standard Industrial
Classification.
3. Note on survey results
(1) Only valid answers are included. Therefore, the number of respondents varies per item.
(2) When comparing the results of the current survey with previous surveys, it is necessary to note
the differences in the response rate and the number of foreign affiliates covered, as some
enterprises that fell outside the scope of previous surveys were included in the current survey, and
vice versa.
(3) Notes for the marks in tables and figures
The mark “x” signifies that the data have been suppressed because only either 1 or 2 enterprises
fall under the category. This method is used even where figures are 3 or more, if disclosure of
such figures would help identify the suppressed figures by calculation.
The mark “–” indicates that there is no relevant figure.
“0” shows that the figure is less than one unit.
The mark “…” indicates that the denominator is negative or the numerator is 0.
(4) The sum of individual items may disagree with the given total, due to the numbers being rounded
off to the nearest unit.
(5) Year-on-year comparisons and ratios mentioned in the text have been calculated in millions of
yen, the counting unit of this survey.
4. Ratio calculation formula
Ordinary profit to sales ratio= Ordinary profit/Sales × 100
Ratio of equity to total assets = Shareholder equity/Total assets × 100
5. Miscellaneous
When reprinting the statistical figures given in this survey, the source must be cited as “Survey of
Trends in Business Activities of Foreign Affiliates” (Ministry of Economy, Trade and Industry).
Trade and Investment Facilitation Division
Trade and Economic Cooperation Bureau
Ministry of Economy, Trade and Industry
The 45th Survey of Trends in Business Activities of Foreign Affiliates (Summary)
Points of the trends among foreign affiliates in Japan in FY2010
○ The percentage of Asian affiliates increased.
○ Both the number of new entries and the number of withdrawals, etc.,
decreased.
○ The number of regular employees decreased. The percentage of part-time
workers also decreased.
○ Regarding the Asia and Oceania regions, most regional headquarters were in
China.
○ Sales, ordinary profit, and capital investment increased.
○ About 50% of affiliates will expand their businesses.
(Note) Starting from the 44th survey, the finance and insurance industry, and the real estate industry were added to
the targets of the survey. In this summary, from the viewpoint of comparison from the previous fiscal years, data
excluding, in principle, the finance and insurance industry, and the real estate industry are used, with data including
those industries being provided as necessary.
○ The percentage of Asian affiliates increased.
・ Asian affiliates accounted for 21.6% of the total, up 0.8% points from the previous fiscal year,
showing an increase from the decrease for the first time in five years in the last fiscal year. In the
meantime, U.S. affiliates accounted for 29.0%, down 1.2% points (id.), and European affiliates
remained unchanged, at 43.2%.
○ Both the number of new entries and the number of withdrawals, etc., decreased.
・ The number of companies that were newly foreign-capitalized decreased by 56.1% from the
previous survey, from 82 to 36.
・ The number of companies that dissolved, withdrew, or reduced their foreign capital ratio
decreased by 3.7% from the previous survey, from 164 to 158.
○ The number of regular employees decreased. The percentage of part-time workers also
decreased.
・ The number of regular employees decreased 5.5% from the previous fiscal year, mainly in the
retail trade industry, to 454,000.
・ The percentage of part-time workers decreased 3.4% points from the previous fiscal year to
24.6%.
○ Regional headquarters in the Asia and Oceania regions were the largest in number in
China.
・ Regional headquarters in the Asia and Oceania regions were largest in number in China, at 350,
followed by Singapore, at 343, Hong Kong, at 286, and Japan at 152.
* The number of regional headquarters includes the finance and insurance industry, and the real
estate industry. The total number includes multiple answers.
○
・
・
・
Sales, ordinary profit, and capital investment increased.
Sales were 36.1 trillion yen, up 10.0% from the previous fiscal year.
Ordinary profit was 1,667.5 billion yen, up 21.5% from the previous fiscal year.
Capital investment was 796.1 billion yen, up 38.4% from the previous fiscal year.
○ About 50% of affiliates will expand their businesses.
・ As for the future business expansion in Japan, affiliates that answered “planning business
expansion” were the largest in number, accounting for 49.1%, followed by the affiliates that
answered “maintain current conditions,” which accounted for 48.0%.
* The values include the finance and insurance industry, and the real estate industry.
1. Distribution
・ The survey as of the end of March 2011 covered 2,965 foreign affiliates (excluding the finance
and insurance industry and the real estate industry, the same hereinafter) (up 6.0% from the
previous fiscal year), with 513 (up 1.2% (id.)) in the manufacturing sector and 2,452 (up 7.1%
(id.)) in the non-manufacturing sector. The manufacturing sector accounted for 17.3% of all
industries, down 0.8% points from the previous fiscal year, while the non-manufacturing sector
accounted for 82.7%, up 0.8% points (id.) (Fig. 1-1 and Table 1-1).
・ By industry, wholesale trade numbered the highest, at 1,301, accounting for 43.9%, followed by
services, and information and communications (Fig. 1-1).
・ By region of origin, European affiliates reached 1,281, accounting for 43.2%, remaining
unchanged from the previous fiscal year. U.S. affiliates came to 861 (29.0%, down 1.2% points
(id.)), and Asian affiliates came to 640 (21.6%, up 0.8% points (id.)) (Table 1-1).
Figure 1-1 Distribution of Foreign Affiliates by Industry
(Excluding the finance and insurance industry, and the real estate industry)
1 2 3 4 5 6 7 8 9 0 1 2 3 Other
4 5 6non7 8 9 0 1Information
2 3 4 5 &
6 communications
7 8 9 0 1 2 3equipment
4 5 6 7558 9 0
manufacturing Chemicals
103
90
Transport
103
Transportation equipment 55
1
2
3
Business oriented machinery 34 4
Medicine 31
5
General purpose machinery 29
6
Other
7
manufacturing
8
145
9
0
1
2
3
4
5
6
Wholesale trade
7
1,301
8
9
0
Electrical machinery 38
Production machinery 36
Retail trade
148
Information &
communications
352
Manufacturing
513
17.3%
Non-manufacturing
2,452
82.7%
Services
445
Table 1-1 Composition Percentage by Region of Origin and by Industry (Excluding the finance
and insurance industry, and the real estate industry)
(Companies, %, % point)
FY2010
Number of
foreign
affiliates
Composition percentage
FY2006
FY2007
FY2008
FY2009
FY2010
Year-on-year
changes
Total
U.S.
Asian
Chinese
European
Others
Manufacturing
2,965
861
640
222
1,281
183
513
100.0
35.4
16.8
6.1
42.6
5.2
25.2
100.0
32.0
20.8
7.0
41.6
5.7
22.4
100.0
30.7
21.0
7.4
42.5
5.7
19.0
100.0
30.2
20.8
7.6
43.2
5.8
18.1
100.0
29.0
21.6
7.5
43.2
6.2
17.3
－
-1.2
0.8
-0.1
0.0
0.4
-0.8
Non-manufacturing (Excluding the
finance and insurance industry and the
real estate industry)
2,452
74.8
77.6
81.0
81.9
82.7
0.8
2. New entries
・ Of the foreign affiliates covered by the survey in FY2010 (excluding the finance and insurance
industry, and the real estate industry, the same hereinafter), 36 companies (down 56.1% from the
previous fiscal year) were newly established or newly started capital participation.(Note) They are
broken down into 10 manufacturing companies (down 37.5% from the previous fiscal year) and
26 non-manufacturing companies (down 60.6% (id.)) (Table 2-1).
・ By region of origin, Asian affiliates decreased 39.1% from the previous fiscal year to 14, U.S.
affiliates decreased 61.5% (id.), to 10, and European affiliates decreased 64.3% (id.), to 10.
(Table 2-1).
・ The number of new entries, including the finance and insurance industry, and the real estate
industry, came to 37 (see the statistics table).
Table 2-1 Number of New Entries
(Excluding the finance and insurance industry, and the real estate industry)
(Companies, %)
World total
FY2009
FY2010
U.S. affiliates
Year-on-year
changes
FY2009
FY2010
Asian affiliates
Year-on-year
changes
FY2009
FY2010
European affiliates
Year-on-year
changes
FY2009
FY2010
Year-on-year
changes
All industries
82
36
-56.1
26
10
-61.5
23
14
-39.1
28
10
Manufacturing
16
10
-37.5
8
1
-87.5
4
4
0.0
4
4
-64.3
0.0
Non-manufacturing
66
26
-60.6
18
9
-50.0
19
10
-47.4
24
6
-75.0
(Note) Including companies that have not yet reached the first accounting term after establishment or after foreign
capitalization.
3. Dissolution, withdrawal, or foreign capital ratio reduction
・ The number of companies that dissolved, withdrew, or reduced their foreign capital ratio(Note) in
FY2010 (excluding the finance and insurance industry and the real estate industry, the same
hereinafter) was 158, down 3.7% from the previous fiscal year, of which 34 companies (up
13.3% from the previous fiscal year) were in the manufacturing sector and 120 companies
(down 4.0% (id)) were in the non-manufacturing sector (Table 3-1).
・ By region of origin, U.S. affiliates decreased 11.3% from the previous fiscal year to 55,
European affiliates decreased 7.3% (id.) to 51, and Asian affiliates increased 40.9% (id.) to 31
(Table 3-1).
・ The number of companies that dissolved, withdrew, or reduced their foreign capital ratio,
including in the finance and insurance industry and the real estate industry, came to 172 (see the
statistics table).
Table 3-1 Number of Withdrawals
(Excluding the finance and insurance industry, and the real estate industry)
World total
FY2009
All industries
Manufacturing
Non-manufacturing
FY2010
U.S. affiliates
Year-on-year
changes
FY2009
FY2010
(Companies, %)
European affiliates
Asian affiliates
Year-on-year
changes
FY2009
FY2010
Year-on-year
changes
FY2009
FY2010
Year-on-year
changes
164
158
-3.7
62
55
-11.3
22
31
40.9
55
51
-7.3
30
34
13.3
10
15
50.0
3
6
100.0
13
12
-7.7
125
120
-4.0
52
39
-25.0
19
25
31.6
42
39
-7.1
(Note 1) Foreign capital ratio reduction means that the ratio of capitalization by foreign investors has fallen to
one-third or less, or the ratio of capitalization by main foreign investors has fallen to less than 10%.
(Note 2) The values of all industries in the world total and the U.S. affiliates were different from the sum of values of
manufacturing and non-manufacturing since 9 companies in FY2009 and 4 companies in FY2010 could not
identify their type of industry.
4. Offices in Japan by function
・ Looking at the number of offices in Japan (excluding the finance and insurance industry, and the
real estate industry, the same hereinafter) per company, by function,(Note) the average number of
domestic offices with sales and marketing functions was 3.3 for companies in the manufacturing
sector and 4.0 for those in the non-manufacturing sector. Companies in the manufacturing sector
also have 0.7 R&D facilities (Fig. 4-1).
Figure 4-1 Number of Offices of Foreign Affiliates in Japan by Function (Average per
Company) (Excluding the finance and insurance industry and the real estate industry)
(Number of offices)
5
4.0
3.9
4
3.3
All industries
Manufacturing
Non-manufacturing
3
2
1.2
0.7
1
0.3
0.2
0.4
1.0
0.2
0.5
0.4
0.7 0.8 0.6
0.6 0.8 0.6
Finance
Human resources
0
Sales & marketing
Research &
development
Manufacturing &
processing
Distribution
(Note) Offices with multiple functions are counted separately for each function.
5. Employment
・ The number of regular employees (excluding the finance and insurance industry and the real
estate industry, the same hereinafter) decreased 5.5% from the previous fiscal year to 454,000
(down 0.9% when limited to companies that responded in both the previous fiscal year and the
current year). The manufacturing sector recorded a 4.0% increase from the previous fiscal year
to 206,000, and the non-manufacturing sector saw a decrease of 12.1% (id.) to 248,000 (Fig.
5-1).
・ By industry, in the manufacturing sector, transportation equipment recorded an increase of
26.3% from the previous fiscal year to 83,000, whereas electrical machinery showed a decrease
of 39.8% (id.) to 50,000. In the non-manufacturing sector, retail trade recorded a decrease of
29.8% (id.) to 32,000 (Fig. 5-2).
・ The percentage of part-time workers(Note) in the manufacturing sector increased 2.2% points
from the previous fiscal year to 6.2%, and that in the non-manufacturing sector declined 5.9%
points (id.) to 38.2% (Table 5-1).
・ The number of regular employees, including the finance and insurance industry, and the real
estate industry, came to 524,000 (Fig. 5-1).
Figure 5-1 Number of Regular Employees
(10,000 persons)
60
59.0
55.6
52.6
50.4
48.0
45.4
24.3
28.2
24.8
43.8
50
40
35.9
33.1
30.5
27.5
30
53.3
52.4
33.5
31.8
19.8
20.6
20
10
22.9
22.1
22.5
23.2
19.5
19.8
20.6
04
05
06
07
08
09
10 (FY)
0
Manufacturing
Non-manufacturing
09 (FY)
10 (FY)
(Including the
(Including the
finance and
finance and
insurance industry insurance industry
and the real estate and the real estate
industry)
industry)
＿All industries
Figure 5-2 Number of Regular Employees by Industry
(Excluding the finance and insurance industry and the real estate industry)
(10,000 persons)
9
8
FY2009
8.3
FY2010
6.8
6.6
7
6.1
6
3.9
4
1.2
4.7
4.0
3.6
3.4
3.2
3.1
2.8
3
2
4.9
4.6
5
1.2
0.7
1
0.7
0.8
0.5
0
Chemicals
Medicine
Production
machinery
Electrical
machinery
Information &
communications
equipment
Transportation
equipment
Information &
communications
Wholesale
trade
Retail
trade
Services
Non-manufacturing
Manufacturing
Table 5-1 Percentage of Part-Time Workers
(Excluding the finance and insurance industry and the real estate industry)
(%, % point)
Percentage of part-time workers
FY2006
All industries
Manufacturing
Non-manufacturing
37.6
5.6
56.5
FY2007
37.6
4.7
56.1
FY2008
23.5
5.2
37.4
FY2009
28.0
4.0
44.1
FY2010
24.6
6.2
38.2
Year-on-year
changes
-3.4
2.2
-5.9
(Note) Percentage of part-time workers = Number of part-time workers / (Number of full-time workers + Number of
part-time workers) × 100.0
6. Regional headquarters in the Asia and Oceania regions
・ There were 152 regional headquarters located in Japan that control all of their respective bases
in the Asia and Oceania regions (including in the finance and insurance industry, and the real
estate industry, the same hereinafter) (Table 6-1).
・ Meanwhile, with regard to the countries and regions where foreign parent companies (principal
foreign investors) have their regional headquarters that control all of their respective bases in the
Asia and Oceania regions, 350 were in China, 343 were in Singapore, and 249 were in Hong
Kong (Table 6-2).
Table 6-1 Regional Headquarters in Japan that control all of their respective bases in the Asia
and Oceania Regions
(Including in the finance and insurance industry, and the real estate industry)
(Companies, bases)
Number of
regional Number of country and regional bases controlled (total number)
headquarters
(companies)
China
Hong Kong
Taiwan
South Korea Thailand
All industries
Manufacturing
Non-manufacturing
Indonesia
Malaysia
Singapore
Others
152
75
42
57
79
35
24
32
49
118
30
17
9
20
18
11
8
10
9
41
122
58
33
37
61
24
16
22
40
77
(Note) The number of country and regional bases controlled is the total number according to multiple answers.
Table 6-2 Regional Headquarters that control all of their respective bases in the Asia and
Oceania Regions belonging to foreign parent companies (principal foreign investors)
(Including the finance and insurance industry, and the real estate industry)
(Bases)
China
All industries
Manufacturing
Non-manufacturing
Hong Kong
Taiwan
South Korea
India
Singapore
Australia
Others
350
286
88
88
77
343
104
521
73
39
14
10
14
46
13
89
277
247
74
78
63
297
91
432
(Note 1) Regional headquarters that control all of their respective bases in the Asia and Oceania regions belonging to
foreign parent companies, which were not covered by this survey, are compiled by country and region.
(Note 2) The number of regional headquarters by country and region is the total number according to multiple
answers.
(Note 3) Duplications in cases where both the subsidiary and sub-subsidiary of one foreign parent company provided
answers are excluded.
7. Sales, exports, and foreign investors
・ Sales (excluding the finance and insurance industry, and the real estate industry, the same
hereinafter) amounted to 36.1 trillion yen, up 10.0% from the previous fiscal year (up 12.5%
when limited to companies that responded in both the previous fiscal year and the current year).
The manufacturing sector posted 22.4 trillion yen, up 18.2% from the previous fiscal year, and
the non-manufacturing sector marked 13.7 trillion yen, down 1.2% (id.) (Fig. 7-1).
・ By industry, in the manufacturing sector, transportation equipment increased 55.6% from the
previous fiscal year to 6.7 trillion yen. In the non-manufacturing sector, wholesale trade
decreased 1.1% from the previous fiscal year to 8.7 trillion yen, and information and
communications increased 15.0% (id.) to 1.4 trillion yen (Fig. 7-2).
・ Exports increased 15.3% from the previous fiscal year to 5.5 trillion yen (up 11.4% when
limited to companies that responded in both the previous fiscal year and the current year) (Table
7-1).
・ Looking at the proportion of sales to principal foreign investors to the total sales, the
manufacturing sector posted 0.9%, down 0.3% points from the previous fiscal year, while the
non-manufacturing sector posted 1.4%, down 0.8% points (id.). By region of origin, Asian
affiliates decreased 3.1% points (id.) to 6.2% (Table 7-1).
・ Sales, including the finance and insurance industry, and the real estate industry, amounted to
43.1 trillion yen (Fig. 7-1).
Figure 7-1 Sales
(Trillion yen)
45
40
37.4
36.1
35.0
35.4
15.4
14.7
18.8
19.5
20.7
22.4
20.5
18.9
04
05
06
07
08
09
32.8
32.1
35
20.7
17.0
30
13.3
25
43.1
41.3
39.5
22.4
13.7
16.9
13.9
20
15
10
22.4
22.4
18.9
5
0
Manufacturing
Non-manufacturing
10 (FY)
＿All industries
09 (FY)
10 (FY)
(Including the
(Including the
finance and
finance and
insurance industry insurance industry
and the real estate and the real estate
industry)
industry)
Figure 7-2 Sales by Major Industry
(Excluding the finance and insurance industry, and the real estate industry)
(Trillion yen)
12
FY2009
FY2010
10
8.7 8.7
8
6.7
6
4.3
4
2
3.0
2.5
2.3 2.5
1.6
1.2 1.4
1.1 1.2
0.2 0.4
0.3 0.2
Production
machinery
Electrical
machinery
1.1
1.3 1.4
0
Chemicals
Medicine
Manufacturing
Information & Transportation Information &
communications equipment
communications
equipment
Wholesale
trade
Retail
trade
Non-manufacturing
Services
Table 7-1 Sales and Exports, and Sales to Principal Foreign Investors, and
the Proportion Thereof to Total Sales
(Excluding the finance and insurance industry, and the real estate industry)
(100 million yen, %)
Sales
Exports
Sales to principal foreign
investors
FY2010
Total
Year-on-year
changes
FY2010
Year-on-year
changes
FY2010
Year-on-year
changes
360,684
10.0
55,466
15.3
3,939
-26.4
Manufacturing
223,577
18.2
46,549
37.2
2,031
-13.3
Non-manufacturing
137,106
-1.2
8,917
-37.1
1,908
-36.7
U.S.
79,793
-1.4
5,052
-21.5
1,677
-21.3
Asian
26,024
-11.1
5,640
-48.6
1,626
-40.5
217,797
17.4
43,160
47.4
582
31.0
European
(%, % point)
Proportion of sales to principal foreign
investors to the total sales
FY2009
Total
Manufacturing
FY2010
Year-on-year
changes
(% point)
1.6
1.1
-0.5
1.2
0.9
-0.3
Non-manufacturing
2.2
1.4
-0.8
U.S.
2.6
2.1
-0.5
Asian
9.3
6.2
-3.1
European
0.2
0.3
0.1
8. Profit
・ Ordinary profit (excluding the finance and insurance industry, and the real estate industry, the
same hereinafter) was 1.6675 trillion yen, up 21.5% from the previous fiscal year (up 25.1%
when limited to companies that responded in both the previous fiscal year and the current year).
The manufacturing sector marked an increase of 13.7% from the previous fiscal year to 895.1
billion yen, and the non-manufacturing sector recorded an increase of 31.9% (id.) to 772.4
billion yen (Fig. 8-1).
・ By industry, in the manufacturing sector, information and communication equipment increased
47.4% from the previous fiscal year to 173.8 billion yen, and production machinery rebounded
to a positive figure. In the non-manufacturing sector, services increased 154.2% (id.) to 145.2
billion yen (Fig. 8-2).
・ The ordinary profit to sales ratio(Note) increased 0.4% points from the previous fiscal year to
4.6%. This was 1.4% points higher than that for incorporated enterprises as a whole (Fig. 8-3).
・ By region of origin, U.S. affiliates increased 0.6% points from the previous fiscal year to 9.7%
(Fig. 8-4).
・ Ordinary profit, including the finance and insurance industry, and the real estate industry, was
2.0778 trillion yen (Fig. 8-1).
Figure 8-1 Ordinary Profit
(100 billion yen)
24.1
25
20.8
20.1
20
18.8
8.2
16.5
6.3
15
16.3
7.7
8.5
7.9
9.0
7.9
09
10 (FY)
13.7
6.7
5.5
16.7
11.8
11.0
5.9
10
5.2
15.8
13.8
11.0
5
12.1
5.8
9.0
0
04
05
06
Manufacturing
07
Non-manufacturing
08
＿All industries
09 (FY)
10 (FY)
(Including the
(Including the
finance and
finance and
insurance industry insurance industry
and the real estate and the real estate
industry)
industry)
Figure 8-2 Ordinary Profit by Major Industry
(Excluding the finance and insurance industry, and the real estate industry)
(Billion yen)
383
400
FY2009
300
270
266
261
237
FY2010
200
267
236
174
145
118
83 102
100
86
37
27
20 14
3
0
57
12
3
-43
-100
Food
Chemicals
Medicine
Production
machinery
Electrical Information & Transportation Information &Wholesale trade Retail trade
machinery communications equipment communications
equipment
Manufacturing
Non-manufacturing
Services
Figure 8-3 Changes in Ordinary Profit to Sales Ratio
(%)
7
5.8
6
5.3
5.2
5.6
5
4.6
4.2
4
3.0
3
3.1
3.4
3.5
3.4
2
3.2
2.4
2.3
08
09
1
0
04
05
06
Foreign affiliates
07
10 (FY)
All incorporated enterprises
Source: All incorporated enterprises: "Financial Statement Statistics of Corporations by Industry" (Ministry of
Finance)
(Note) The values of the Survey of Trends in Business Activities of Foreign Affiliates exclude the values of the
finance and insurance industry and the real estate industry.
Figure 8-4 Ordinary Profit to Sales Ratio (by Region of Origin)
(%)
14
12
10
7.8
7.9
8
6
4
2
9.7
9.1
7.5
7.4
5.6
5.5
4.8
4.6
3.1
7.2
3.4
3.5
3.4
0.5
0.2
04
05
0.9
1.0
06
07
3.7
3.2
2.5
2.4
0.9
2.3
1.1
3.2
1.4
0
U.S.
Asian
European
08
09
10 (FY)
All incorporated enterprises
Source: All incorporated enterprises: "Financial Statement Statistics of Corporations by Industry" (Ministry of
Finance)
(Note 1) Ordinary profit to sales ratio = Ordinary profit / Sales × 100.0
(Note 2) The values of the Survey of Trends in Business Activities of Foreign Affiliates exclude the values of the
finance and insurance industry and the real estate industry.
9. Equity to total assets ratio
・ The ratio of equity to total assets(Note) (excluding the finance and insurance industry and the real
estate industry) was 41.3%. This was 2.7% points higher than that for incorporated enterprises
as a whole (Fig. 9-1).
・ The ratio of equity to total assets, including the finance and insurance industry, and the real
estate industry, was 12.3%. This was 5.4% points lower than that for incorporated enterprises as
a whole (Fig. 9-1).
Figure 9-1 Equity to Total Assets Ratio
(%)
50.0
39.3
42.1
40.6
41.3
38.3
40.0
35.6
30.0
32.8
33.5
33.9
34.5
17.4
20.0
17.7
12.3
14.1
10.0
06
07
08
09
10 (FY)
Foreign affiliates (Excluding the finance and insurance industry and the real estate industry)
Foreign affiliates (Including the finance and insurance industry and the real estate industry)
All incorporated enterprises (Excluding the finance and insurance industry and the real estate industry)
All incorporated enterprises (Including the finance and insurance industry and the real estate industry)
Source: All incorporated enterprises: "Financial Statement Statistics of Corporations by Industry" (Ministry of
Finance)
(Note) Ratio of equity to total assets = Total shareholder equity / Total assets × 100.0
10. Capital investment/Research and development
・ Capital investment (excluding the finance and insurance industry, and the real estate industry,
the same hereinafter) amounted to 796.1 billion yen, up 38.4% from the previous fiscal year (up
38.0% when limited to companies that responded in both the previous fiscal year and the current
year). The manufacturing sector recorded an increase of 51.8% from the previous fiscal year to
647.2 billion yen, and the non-manufacturing sector saw a 0.2% decrease (id.) to 148.9 billion
yen (Fig. 10-1).
・ The proportion of capital investment by foreign affiliates to the total by all incorporated
enterprises was 2.4%, up 0.7% points from the previous fiscal year (Fig. 10-1).
・ By industry, transportation equipment saw an increase of 94.6% from the previous fiscal year,
and information and communications equipment recorded an increase of 88.6 % (id.) (Fig.
10-2).
・ Capital investment, including in the finance and insurance industry, and the real estate industry,
amounted to 835.1 billion yen.
・ The average rate of research and development expenses per company in the manufacturing
sector was 3.31 billion yen, up 1.5% from the previous fiscal year. By industry, transportation
equipment posted 19.07 billion yen, followed by medicine, at 9.17 billion yen, and information
and communications equipment, at 1.94 billion yen (Fig. 10-3).
Figure 10-1 Capital Investment
(Excluding the finance and insurance industry and the real estate industry)
(Billion yen)
2,000
4,007
3,855
1,500
944
896
251
1,013
1,236
330
758
575
149
2,000
796
647
1,000
149
426
350
296
04
0
4,000
2,791
3,000
698
648
500
3,326
3,313
1,566
1148
1,048
1,000
(10 billion yen)
5,000
4,431
4,376
256
05
06
07
08
09
10 (FY)
All industries
Manufacturing
Non-manufacturing (Excluding the finance and insurance industry and the real estate industry)
All incorporated enterprises (Right scale)
0
Source: All incorporated enterprises: "Financial Statement Statistics of Corporations by Industry" (Ministry of
Finance)
Figure 10-2 Capital Investment by Major Industry
(Excluding the finance and insurance industry and the real estate industry)
(10 billion yen)
40
FY2009
FY2010
30
23.3
17.2
20
12.4
10
2.0 3.6
3.0 2.2
Chemicals
Medicine
8.8
6.2 4.5
1.6 2.8
0.7 0.5
2.5 1.5
0
(100 million yen)
9.7
191
95
33
(%)
7.4
7.3
7.2
92
8
5.3
5.1
4
100
50
Retail trade
10
8.3
8
132
4.5
Information & Transportation Information & Wholesale trade
communications
equipment communications
equipment
Figure 10-3 R&D Expenses (Average per Company) by Industry
and Ratio of R&D Expenses to Sales
200
150
Production
machinery
6
3.5
2.8
3.1
2.3
4
2
33
30
19
09
10
8
8
9
6
4
4
09
10
09
10
09
10
0
-2
0
09
10
Manufacturing
09
10
Transportation
equipment
09
10
Medicine
Information &
communications
equipment
R&D expenses (Average per company)
Ratio of R&D expenses to sales = R&D expenses / Sales × 100.0
Production
machinery
Electrical
machinery
Ratio of R&D expenses to sales
Chemicals
11-1. Attractiveness for business expansion in Japan
・ Regarding whether the business environment is attractive for business expansion in Japan, the
top response was, “Income levels are high, and customer volume for products and services is
high,” accounting for 51.0% of the total.
・ About 50% affiliates also said, “There is extensive infrastructure (transportation, energy,
communications, etc.)” (composition ratio of 49.7%), and, “The environment is sensitive to
added value and trends in products and services. It is a proving ground for measuring the
competitiveness of new products and services” (38.6%).
Figure 11-1 Attractiveness for Business Expansion in Japan
(Multiple answers: up to five top items)
(%)
60
N=2,855
0
20
40
51.0
Income levels are high. Customer volume for products and services is high.
49.7
Extensive infrastructure (transportation, energy, communications, etc.)
Sensitive to added value and trends in products and services. Proving ground for
measuring competitiveness of new products and services
47.3
35.6
Concentration of global companies and affiliates
33.9
Developed living environment
23.9
Availability of quality personnel
18.6
Gateway to the Asian market. Optimal location for regional headquarters.
12.3
High quality research and development environment
Legal provisions regarding intellectual property is extensive
11.6
Geographical advantage for accessing headquarters and countries your company
manages.
11.6
10.5
Solid financial environment, financing opportunities
Very open business regulations
3.4
Extensive business support organizations
2.9
Increased demand is projected due to the earthquake
2.7
Extensive breaks and incentives
0.8
Low cost of doing business (labor, real estate, etc.)
0.8
Others
11.3
11-2. Factors inhibiting business expansion in Japan
・ As for factors inhibiting business expansion in Japan, the top answer was “High cost of doing
business,” accounting for 70.5% of the total, thus more than 70%.
・ “Exclusivity and distinctiveness of the Japanese market” (composition ratio of 46.4%), and
“High standard that users demand from products and services” (38.6%) followed.
Figure 11-2 Factors Inhibiting Business Expansion in Japan
(Multiple answers: up to five top items)
(%)
N=2,861
0
20
40
60
70.5
High cost of doing business
46.4
Exclusivity and distinctiveness of the Japanese market
39.7
Difficulty securing personnel
High standard that users demand from products and
services
38.6
32.8
Complicated administrative procedures
29.0
Strict regulations, permits and license system
19.1
Not enough breaks and incentives
15.0
Concerns regarding radiation exposure
14.2
Concerns regarding natural disasters such as earthquake and tsunami
12.8
Living environment for foreigners
10.0
Power supply concerns
9.2
Difficulty securing financing
8.1
Shortage of information and support services
Hindrance to logistics functions
1.7
Difficulty sourcing parts, raw materials, etc.
1.6
Underdeveloped infrastructure
Others
80
0.7
10.3
12. Inhibiting factors with regard to the cost of doing business in Japan
・ As for inhibiting factors with regard to the cost of doing business in Japan, the top answer was
“Labor costs,” which accounted for 67.4% of the total and was the response of about 70% of
affiliates, followed by “Tax liability” (composition ratio of 62.3%), “Rent (for office)” (40.6%),
and “Distribution costs” (23.4%).
Figure 12-1 Inhibiting Factors with regard to the Cost of Doing Business in Japan
(Multiple answers: up to three top items)
(%)
0
20
40
60
Labor costs
67.4
Tax liability
62.3
Rent (for office)
40.6
Distribution costs
23.4
Social security costs
19.9
Facility costs
16.4
Utilities
Land acquisition costs
Communication costs
Land leasing costs
Others
80
7.0
4.5
3.3
1.4
11.4
N=2,876
13-1. Inhibiting factors in securing Japanese personnel
・ As for inhibiting factors in securing Japanese personnel, the top answer was “High standards of
compensation, such as salary, etc.,” which accounted for 56.2% of the total and was the response
of the majority of affiliates, together with “Business communication difficulties in English”
(composition ratio of 53.3).
・ “Lack of mobility in the labor market” (composition ratio of 30.2%), and “Recruiting and hiring
costs” (26.5%) followed.
Figure 13-1 Inhibiting Factors in Securing Japanese Personnel
(Multiple answers: up to three top items)
0
10
20
30
40
High standards of compensation such as
salary, etc.
50
(%)
60
56.2
Business communication difficulties in
English
53.3
Lack of mobility in the labor market
30.2
Recruiting and hiring costs
26.5
High standards of non-obligatory welfare
costs
25.4
Strict labor regulations
23.9
Underdeveloped employment agency
services
10.9
Others
11.7
N=2,870
13-2. Inhibiting factors in securing foreign personnel
・ As for inhibiting factors in securing foreign personnel, the top answer was “Business
communication difficulties in Japanese,” accounting for 63.4% of the total, thus over 60%.
・ “High standards of compensation such as salary, etc.” (composition ratio of 33.7%),
“Difficulties obtaining work visas” (27.9%), and “Difficulty finding residential accommodation”
(23.7%) followed.
Figure 13-2 Inhibiting Factors in Securing Foreign Personnel
(Multiple answers: up to three top items)
0
10
20
30
40
Business communication difficulties
in Japanese
33.7
27.9
Difficulties obtaining work visas
Difficulty finding residential
accommodation
23.7
High standards of non-obligatory
welfare costs
15.4
Difficulties obtaining permanent
residence
13.0
Lack of medical facilities with
English speaking staff
12.8
Difficulty finding employment for
spouse
Difficulties obtaining visa for
domestic workers and babysitters
Others
60
63.4
High standards of compensation such
as salary, etc.
Lack of international schools
50
(%)
70
9.1
4.2
2.8
18.0
N=2,850
14-1. Business partnerships with Japanese companies
・ The top answer regarding the total number of Japanese companies that foreign affiliates doing
business in Japan partnered with was “Less than 1 company,” accounted for 77.7% of the total,
thus about 80%.
・ With regard to the affiliates that partnered with Japanese companies, “1 company” accounted for
8.1%, “2–4 companies” accounted for 7.5%, “5–9 companies” accounted for 2.4%, and “More
than 10 companies” accounted for 4.3%.
Figure 14-1 Business Partnerships with Japanese Companies
Less than 1 company
1 company
N=2,915
2-4 companies
5-9 companies
More than 10 companies
77.7
8.1
7.5 2.4 4.3
14-2. Advantage of partnering with Japanese companies
・ As for the advantage of partnering with Japanese companies, the top answer was “It made
entering the Japanese market easier,” accounting for 27.2% of the total, followed by “It achieved
business stabilization and expansion” (composition ratio of 24.9%), and “It made use of
partner’s human and corporate network” (21.9%).
Figure 14-2 Advantage of partnering with Japanese Companies
(%)
0
10
20
30
Made entering the Japanese market easier
27.2
Achieved business stabilization and expansion
24.9
Made use of partner's human and corporate
network
21.9
Gained outstanding technology and expertise
6.9
Raised trust and reliability from customers
6.1
Served as foothold for Asia market expansion
3.1
Learned Japanese business practices
2.8
Others
40
7.0
N=639
15. Future plans for business partnerships with Japanese companies
・ As for future plans for business partnerships with Japanese companies, a total of about 40% of
affiliates took a positive view of partnering with Japanese companies, with the answers of
“Aggressively promote business partnerships with Japanese companies” accounting for 8.4%
and “Partner with Japanese companies as needed” accounting for 32.5%.
Figure 15-1 Future Plans for Business Partnerships with Japanese Companies
Aggressively
promote business
partnerships with
Japanese
companies
8.4%
Do not know
35.0%
Not considering
business
partnerships with
Japanese
companies
24.0%
Partner with
Japanese
companies as
needed
32.5%
N=2,851
16. Hiring outlook for this year
・ As for the hiring outlook for this year in foreign affiliates, the top answer was “Maintain current
conditions,” accounting for 66.5% of the total, while “Will increase staff” accounted for 28.6%
and “Will reduce staff” accounted for 4.9%.
Figure 16-1 Hiring Outlook for This Year
Will reduce staff
4.9%
Will increase staff
28.6%
Maintain current
conditions
66.5%
N=2,863
17. Future business expansion in Japan
・ As for future business expansion in Japan, the top answer was “Planning business expansion,”
accounting for 49.1% of the total, thus about 50%, followed by “Maintain current conditions,”
accounting for 48.0%.
・ Whereas, “Planning to downsize” stood at a composition ratio of 1.9%, and “Discontinue
operations” stood at 1.0%.
Figure 17-1 Future Business Expansion in Japan
Planning to
downsize
1.9%
Maintain current
conditions
48.0%
Discontinue
operations
1.0%
Planning business
expansion
49.1%
N=2,858