Europe Japan Industrial Relations

2015

- Working together for a better future -

Philippe Huysveld M. Motoko Huysveld

Europe-Japan Business Consultants

GBMC (Global Business & Management Consulting) www.gbmc.biz

GBMC Publications

Europe Japan Industrial Relations 2015

- Working together for a better future -

Editor: Lulu.com

First Edition Copyright © 2015 Philippe Huysveld and Motoko Huysveld

All rights reserved ISBN: 978-1-326-40444-4

FOREWORD

We would like to thank all the Interviewees for their time and efforts in finalising the texts with us as well as their collaboration and permission to publish their testimonials. It has been a pleasure working with them! Some of the Interviews/data (but not all) originate from field work which we carried out in 2014 for the EU-Japan Centre for Industrial Cooperation (published under the title: “An assessment of key EU industrial sectors open to Japanese technological cooperation and investment”) but most of the texts were updated or enlarged. Wishing you a pleasant and instructive reading. The Authors,

Philippe Huysveld Monica Motoko Huysveld

Paris (France)

Septembre 2015

TABLE OF CONTENTS

Europe Japan Industrial Relations 2015 .............................................................................. 1

- Working together for a better future - ................................................................................. 1

FOREWORD ............................................................................................................................ 3

TABLE OF CONTENTS ......................................................................................................... 4

INTRODUCTION ..................................................................................................................... 6

Part I: Sectoral Overview ............................................................. Erreur ! Signet non défini.

1. Japanese Presence and Investments in Europe ........Erreur ! Signet non défini.

2. Focus on the European Aerospace Sector .................Erreur ! Signet non défini.

2.1. Trends in the industry and Market Overview ..........Erreur ! Signet non défini.

2.2. Major Aviation Industries of interest........................Erreur ! Signet non défini.

2.3. Europe-Japan joint R&D, Industrial Cooperation and Project Participation .......................................................................Erreur ! Signet non défini.

2.4. Japanese Investments and Acquisitions in Europe (to date) ....... Erreur ! Signet non défini.

2.5. Potential in Further Cooperation, R&D and Investments ....Erreur ! Signet non défini.

2.6. The Air Transport Industry .....................................Erreur ! Signet non défini.

3. Focus on the European Railway Sector ......................Erreur ! Signet non défini.

3.1. Brief Market Overview .............................................Erreur ! Signet non défini.

3.2. Japanese Investments and Acquisitions in Europe (to date) ....... Erreur ! Signet non défini.

3.3. Japan-Europe joint R&D, Industrial Cooperation and Project Participation .......................................................................Erreur ! Signet non défini.

3.4. Opportunities for further Cooperation and Investments ....Erreur ! Signet non défini.

4. Focus on the European Automotive Sector ...............Erreur ! Signet non défini.

4.1. Brief Market Overview ................................................Erreur ! Signet non défini.

4.2. Major current Investments and Acquisitions .........Erreur ! Signet non défini.

4.3. Instances of joint R&D, Industrial Cooperation and Project Participation .......................................................................Erreur ! Signet non défini.

4.4. Opportunities for further Cooperation and Investments ....Erreur ! Signet non défini.

5. Focus on the European Energy Sector .......................Erreur ! Signet non défini.

5.1. Brief Market Overview .............................................Erreur ! Signet non défini.

5.2. Instances of Investments and Acquisitions .........Erreur ! Signet non défini.

5.3. Instances of joint R&D, Industrial Cooperation and Project Participation .......................................................................Erreur ! Signet non défini.

5.4. Opportunities for further Cooperation and Investments ....Erreur ! Signet non défini.

6. Focus on the European ICT and Electronics Sector .Erreur ! Signet non défini.

6.1. Brief Market Overview .............................................Erreur ! Signet non défini.

6.2. Major current Investments and Acquisitions.......Erreur ! Signet non défini.

6.3. Instances of joint R&D, Industrial Cooperation and Project Participation ..............................................................................................Erreur ! Signet non défini.

6.4. Opportunities for further Cooperation and Investments ....Erreur ! Signet non défini.

7. Overview of other EU Sectors ......................................Erreur ! Signet non défini.

7.1. KETs (KEY ENABLING TECHNOLOGIES) ............Erreur ! Signet non défini.

7.2. MEDICAL /PHARMACEUTICALS/HEALTHCARE/BIOTECHNOLOGY SECTORS ............................................................................Erreur ! Signet non défini.

7.3. TEXTILES and FIBRES ............................................Erreur ! Signet non défini.

7.4. CHEMICALS, PLASTICS and RUBBER .................Erreur ! Signet non défini.

7.5. FOODS.......................................................................Erreur ! Signet non défini.

7.6. STEEL, GLASS and METALS .................................Erreur ! Signet non défini.

7.7. (ELECTRICAL) MACHINERY and MACHINE TOOLS ..... Erreur ! Signet non défini.

8. Cross-border cooperation projects and Top Technological Regions .. Erreur ! Signet non défini.

Part II: Corporate Testimonials .............................................................................................. 7

1. Testimonials from Japanese Industry Organisations in Europe ................. 7

TESTIMONIAL 1: Japanese Companies in Europe ........................................... 7

TESTIMONIAL 2: Japanese ICT Manufacturers in Europe ............................. 10

2. Testimonials from Japanese companies active in Europe ........................... 12

TESTIMONIAL 3: The HITACHI Group in Europe ............................................. 12

TESTIMONIAL 4: Railways Business Potential in Europe ............................. 16

TESTIMONIAL 5: Aircraft Business Potential in Europe ................................ 18

TESTIMONIAL 6: Air-conditioning Business in Europe ................................. 21

TESTIMONIAL 7: A Merger & Acquisition Success Story in Europe ............ 24

TESTIMONIAL 8: A R&D Success Story in Europe ......................................... 26

TESTIMONIAL 9: A Japanese Automotive Success Story in Europe ........... 28

TESTIMONIAL 10: Japanese auto parts manufacturing in Eastern Europe 30

TESTIMONIAL 11: Textile manufacturing in Eastern Europe ........................ 32

3. Testimonials from European Organisations “open” to Japan ..................... 34

TESTIMONIAL 12: Long-term Partnership between Japan and the Val d’Oise Prefecture in France ............................................................................................ 34

TESTIMONIAL 13: Business Aviation Opportunities in Europe .................... 39

ABOUT GBMC ....................................................................................................................... 42

BIBLIOGRAPHY & ENDNOTES ......................................................................................... 44

INTRODUCTION

This report has been put together, gathering a lot of data and information from

various types of sources and with different techniques, in order to draw attention to

the ongoing cooperation between Japan and Europe. Not forgetting the decades

of many trials and errors of working out how to work together better, efficiently and

productively.

The Part I of the report puts the focus on the extent of the current cooperation taking

place mainly in Europe (and to a lesser extent in Japan), while the Interviews (Part

II) also highlights the historical background of these companies and organisations. As

a whole, it is extensively illustrated by concrete examples and success stories.

As we close near to the opening of wider international trade relations due to the

progress in the EU-Japan FTA/EPA negotiations, we also point out the possibilities of

further cooperation in the future.

From a sectorial point of view, we focus mainly on the following key business

domains: Transport Industries (such as: Aerospace, Railways and Automotive) as

well as Energy and ICT/Electronics Industries.

We also introduce other important European sectors such as KETs (Key Enabling

Technologies), Medical, Pharmaceuticals, Healthcare, Biotechnology, Textiles and

Fibres, Chemicals, Plastics and Rubber, Foods, Steel, Glass and Metals, (Electrical)

Machinery and Machine Tools. .

Finally, as to the Renewable Energy sector, GBMC has already published a full

report about Renewable Energies in Japan (commissioned by the EU-Japan Centre

for Industrial Cooperation), for which an update (including a second Part on

Renewable Energies in Europe) is scheduled in 2016 by GBMC publications.

We hope it will make an interesting read, as well as being informative, giving you

perhaps “fresh” ideas on how to expand your business, how to cooperate and work

together in both Europe and Japan.

Monica Motoko Huysveld Philippe Huysveld

Paris (France)

Septembre 2015

Part II: Corporate Testimonials

1. Testimonials from Japanese Industry Organisations in Europe

TESTIMONIAL 1: Japanese Companies in Europe

“EU is still one of the biggest markets with a population of 500 million

people. Moreover, Japanese companies need to realize EU’s power to

set the global rules and standards. EU’s regulatory standardisation

efforts often set the standard worldwide. That is the reason why

multinational companies of Japanese parentage should be more

committed to EU policy development in order to support and facilitate the

conduct of Japanese business operations around the globe.”

GBMC Interview with: Mr Yukihiro Kawaguchi, Secretary General, JBCE, Brussels, Belgium. JBCE (Japan Business Council in Europe). www.jbce.org

JBCE

During the interview, Mr Kawaguchi mentioned the common challenges between Japan and EU such as energy and resource efficiency. To solve these challenges, cooperation between EU and Japanese companies in the stage of research and development is key. The association is encouraging its members to participate in EU’s innovation programme Horizon 2020, the world’s biggest public funding programme for multinational research, development and innovation, in partnership with the EU-Japan Centre. According to him, “EU is still one of the biggest markets with a population of 500 million people. Moreover, Japanese companies need to realize EU’s power to set the global rules and standards. EU’s regulatory standardisation efforts often set the standard worldwide. That is the reason why multinational companies of Japanese parentage should be more committed to EU policy development in order to support and facilitate the conduct of Japanese business operations around the globe.” Statistics provided by the association points out the following facts:

In 2012, Japan was the major investor in the EU. EU inward FDI stock reached a value of €200.3 Billion.

In 2011, Japanese companies created more than 437,000 jobs in the EU.

In 2012, EU was Japan’s 3rd trade partner, while Japan was EU’s 7th trade partner. EU 27 Exports to Japan was €55.5 Billion (3.6% of total EU exports).

The conclusion of a comprehensive Free Trade Agreement (FTA) or Economic Partnership Agreement (EPA) is a long aspiration for this association. FTA/EPA can be a trigger to the further communication and collaboration between European and Japanese industries. The Association holds seminars and conferences to promote these objectives. Referring to JBCE’s interview with EU ex-Commissioner for the Environment, Janez Potocnik, Mr Kawaguchi states: “In this interview he recognises Japan as one of the key international partners with whom EU would like to intensify cooperation on resource efficiency. As a general rule, it is preferable that global solutions are found at a global level. EU and Japan should play a leading role in achieving it and at the same time I believe EU and Japan should work more closely together on resource efficiency by turning environmental challenges into opportunities for European and Japanese business and policy makers. I believe Japan can contribute significantly to the realisation of the Europe 2020 Strategy for sustainable, smart and inclusive growth. It is commonly known that the EU and Japan do not only share common values in democracy and the rule of law, but also common challenges like energy supply and aging population. Thus, the conclusion of an Economic Integration Agreement (EIA) between the EU and Japan could actively contribute to the necessary economic growth of both economies”.

About JBCE (Japan Business Council in Europe) Established in 1999, it is a European organization representing the interest of around 70 Multinational Japanese Companies operating in EU. It has contributed to the EU public policy by sharing members’ expertise with decision-makers across sectors and has played a role as a bridge between the EU and Japan. The President of the association is Mr. Paul Molyneux, who is also the President of Sharp Electronics (Europe) Ltd. Its members cover a wide range of industry sectors including information and communication technologies, electronics, chemicals, automotive, machinery, wholesale trade, precision instruments, pharmaceutical, railway, textiles and glass products. JBCE’s priorities are as follows:

1. Promote open trade and investment 2. Encourage a common regulatory framework. 3. Foster responsible business conduct.

TESTIMONIAL 2: Japanese ICT Manufacturers in Europe

“It is of importance to be aware and to follow the new developments in industrial regulations and standardisation in Europe in order to avoid “Galapagos Effects” characteristic of the Japanese Consumer Market. For example, Japanese consumer electronics have many market specific advanced functions not suitable for other Market, so they often needs to be adjusted and adapted to other standards.” “Manufacture in the EU what has been designed or developed in the EU”.

GBMC Interview with: Mr Kenji Mikami, Representative of JEITA Brussels Office, Brussels, Belgium JEITA (Japan Electronics and Information Technology Industries Association) www. jeita.or.jp

JEITA According to Mr Mikami, there are 200 Japanese ICT companies spread over 22 EU countries, accounting for as much as 100,000 employees in this sector alone. In the world, Japanese major production sites are located in China (No.1) and in other parts of Asia (No.2), EU and US following with approximately the same production level. He also adds: “It is of importance to be aware and to follow the new developments in industrial regulations and standardisation in Europe in order to avoid “Galapagos Effects” characteristic of the Japanese Consumer Market. For example, Japanese consumer electronics have many market specific advanced functions not suitable for other Market, so they often needs to be adjusted and adapted to other standards”. Major operations of ICT companies in EU are often based in UK (HQ) and Western Europe. UK was mentioned as being regarded as the “IT country within the EU”. Factories (for example TV factories) are often located in Eastern Europe. R&D centres and factories are ideally close to each other: investments are usually made where the market needs them. “Manufacture in the EU what has been designed or developed in the EU”. One of the EU sectors with high potential mentioned by Mr Mikami was the Smart Energy sector (EMS, batteries, power semiconductor applications, smart community projects). According to him, there are opportunities for collaboration here due to the fact that the EMS technology is not at the commercial level yet. Other sectors mentioned were Industrial Cyber Security System, Big Data, Silver IT (including robotics and telemedicine) and Bio-Electronics. Other potential investment locations mentioned by him, although usually not well known from Japanese companies, would be “Silicon Valley”- type areas or technological research parks in the EU, like Sophia Antipolis in Nice, France. According to him, a greater presence of Japanese R&D centres in Europe may

increase the probability of participation in EU funded projects. Single Patent process in the EU Single Market was welcomed as a great improvement. As to the new EU Member States, each JEITA member has different decision criteria and, therefore, no particular trend can be seen. However, Eastern European countries are often regarded as gateways to the Russian and Turkish markets. In regards to FP7 projects, the total number of projects in which Japanese companies have participated amounts to around 25. According to Mr Mikami, JEITA Representative, there are already many domestic R&D projects within Japan to cooperate with. It all depends upon the subjects of the projects, that is, if they are of interest or not to the JEITA members. Cooperative relationships especially in R&D projects with EU companies or technological Joint Ventures hold interest as far as it is of mutual benefit for the participants.

About JEITA (Japan Electronics and Information Technology Industries Association) It consists of Japanese ICT companies as its members, making up one of the largest industry associations in Japan. Their member companies, operating in the Electronics and IT industries, account for about ¥ 40 Trillion globally. The EU Office is located in Brussels, Belgium, and headed by Mr Mikami. JEITA primary activities include the following ones:

1. Promoting International Cooperation 2. Working on Environmental Preservation and Safety Measures 3. Advancing Technical Standardization and Technological Development 4. Implementing Surveys and Analysing Statistics 5. Reinforcing the Industry’s Operating Environment 6. Development of New Fields 7. Maintaining Effective Public Relations and Staging Exhibitions

Other activities include:

1. Global Warming Countermeasures 2. Protecting Intellectual Property 3. Promoting Research and statistics Gathering 4. Promote Free Trade Agreement / Economic Partnership Agreement and Information

Technology Agreement, and cooperate with government-level negotiations under the World Trade Organization (WTO).

5. Promoting smart innovation. 6. Promote product safety 7. Promote recycling to develop a recycle-oriented society.

2. Testimonials from Japanese companies active in Europe

TESTIMONIAL 3: The HITACHI Group in Europe

“The EU provides both growth potential and is easier to get into because its total GDP is as large as the one of the USA, while the market of each country is not so huge. Moreover, it is a suitable market to create social innovation business because it has a matured social system and sets aggressive targets for environment conservation. It is a most suitable region to conduct R&D: IP rights are respected and there are less threats of technological imitation than in Asia.” “The merits of local R&D is that it is ideal for adapting to EU standards. EU is a good location to introduce new products to the world market.” GBMC Interview with: Dr Kazuyoshi Torii, Corporate CTO and General Manager of the European R&D Centre, HITACHI Europe Ltd, London area, UK. www.hitachi.eu

__________________________________________________ HITACHI Europe Hitachi’s Social Innovation Business includes Information and Telecommunication Systems, Power Systems, Environmental, Industrial and Transportation Systems, as well as Social and Urban Systems.

A Success Story in the Transportation sector: Hitachi Rail Europe Ltd is a wholly owned subsidiary of Hitachi Europe, Ltd and has headquarters in London, UK. In April 2014, Hitachi appointed a Global CEO in London, U.K. to supervise global strategies for its Rail Systems Business, and it created structures to enable rapid decision-making close to its customers. This is part of wider changes within the company promoting regional management and autonomy to deal with ever increasing global business. It is a total railways system supplier offering rolling stock, traction equipment, signalling, traffic management systems, and maintenance depots. Hitachi built the high speed Javelin trains whose service started in 2009. It was used to transport passengers during the 2012 London Olympics from St Pancras station in London to Stratford, east London.

When in 2005, the Department for Transport started the Intercity Express Programme (IEP) to replace the aging High Speed Trains (HSTs), Hitachi became part of the Agility Trains Consortium, together with UK company John Laing, which has been awarded a £4.5bn contract to build and maintain new Intercity Trains. Hitachi has set up an assembly work site for passenger wagons in UK. The facility is in Newton Aycliffe, County Durham and is now operational. Approximately 200 people were employed in the construction of the new train assembly plant where 730 skilled workers are employed. The deal will also secure thousands of jobs in the supply chain. The first trains are due to enter service on the Greater Western Main Line in 2017 and on the East Coast Main Line by 2018. As well as building the new state-of-the-art assembly facility, the company has constructed maintenance depots in Ashford. It employs over 100 staff, principally permanent employees, providing day to day support across Kent. Of the 332 registered suppliers, 167 are UK-based. Further, there are plans to increase depots in Bristol, Swansea, West London and Doncaster, as well as to upgrade existing depots throughout Britain. Hitachi Rail Europe will carry out the maintenance for the next 27.5 years and run an apprenticeship scheme to continuously train the workforce. The company has also located its European Rail Research Centre and development capabilities on site: it will enhance the factory's ability to win rail contracts across Europe. It has been estimated that the whole facility would see £600 million pumped into the regional economy over the next 20 years. It has been touted as the biggest investment in the region since Nissan. Transport Secretary Justine Greening described it as "fantastic news for Britain". "Hitachi is the latest major international company to invest on this scale in Britain and I look forward to this new factory in County Durham following in the footsteps of Nissan's successful car plant in Sunderland" she said. (Sky News) In Oct 2014, Abellio has confirmed that Hitachi Rail Europe is its preferred supplier of new rolling stock for the programme which is in process of negotiations. Mr. Barr, Chief Operating Officer of Hitachi Rail Europe commented that: ”This is a great news, as it is the first contract for our recently launched AT200 commuter train. These trains will be built at Hitachi’s new Rail Vehicle Manufacturing Facility in Newton Aycliffe, complementing the delivery of the Class 800 and 801 trains for the Intercity Express Programme, boosting jobs and growth in the North East.” Hitachi Rail Europe has been named as preferred supplier by FirstGroup for the new First Great Western franchise. This is subject to approval by the Department for Transport. The fleet of 29 bi-mode AT300 trains would run primarily from London Paddington to Plymouth and Penzance, replacing 40-year old High Speed Trains on the key intercity route to the south west. Mr. Barr, said: “The Class 800 bi-mode trains were initially designed for the Great Western and East Coast main lines and we have refined the design further for the

challenges of the route to Plymouth and Penzance. We have put a lot of thought into ensuring a passenger environment that is comfortable for short and long-distance journeys……” R&D Operations and Investments in Europe: Research & Development is conducted in Germany, France, Denmark and UK. Hitachi has participated in FP7 projects such as IoT-A (internet of Things – Architecture), IRISS (Implementation of Research and Innovation on Smart Systems Technologies), MetMagS (Metrology for advanced industrial magnetics), TOLOP (Towards Low Power ICT), Spinicur, DRIVE C2X (DRIVing implementation and Evaluation of C2X), eCo-FEV (efficient Cooperative infrastructure for Fully Electric Vehicles), and Autonet2030. In Sophia Antipolis (Nice, France), the group has designed communication protocols and platforms for vehicular ad-hoc networks or C2X (Car-to-any) networks, which are a key for “Smart mobility” and autonomous driving. Hitachi also operates R&D in Cambridge University Laboratory as well. The merits of local R&D is that it is ideal for adapting to EU standards. Dr Torii also views EU as a good location to introduce new products to the world market. Another comment was that Single Patent System has improved and facilitated the research process for the better. In the Energy/Power Sector, following the Energy Saving Law, Hitachi has developed B-Chop (Energy Storage for Transaction Power Supply Systems) in order to utilise the re-generative power. The company is also taking part in Smart Community Projects in Manchester, UK, and Malaga, Spain, together with NEDO, providing ICT equipments for these projects. The Healthcare Sector is another core focus area of the company’s Social Innovation Business. Here, Hitachi is working on two collaboration projects, together with the Greater Manchester NHS (the National Health System in UK) and Bispebjerg and Frederiksberg University Hospital, respectively, leveraging IT (Information Technology) and big data analytics in order to improve the quality and effectivity of Healthcare. The first project concerns diabetes prevention in the form of a lifestyle improvement programme. It was shown that time efficiency of care call can be improved by 33 – 40%. It should contribute to reduce the NHS budget since the percentage of aging population is only going to increase in EU as well. The second project is the joint development of new solutions targeting a variety of themes, including “next-generation hospital operations that combine data on facilities and human behaviours”. The goal of these studies will be to increase the efficiency of hospital operations in order to achieve specific goals set by the hospital (e.g., reducing the number of beds and increasing the number of outpatients that can be received).

Regarding the Automotive Sector, Dr. Torii views that “EU leads the next generation technologies and is a good place for exchanging ideas”. There are similar concerns and needs, including CSR. As for the EU market as a whole, according to Dr Torii, “It provide both growth potential and easier to get into because its total GDP is as large as USA while the market of each country is not so huge. Moreover, it is suitable to create social innovation business because it has matured social system and sets aggressive targets for environment conservation. To conduct R&D, it’s more suitable region for their respect on IP rights and there is less threat of technological imitation as there are in Asia.” When discussing country preferences for future investments, the focus was more on the quality of staff available locally. Estonia was mentioned as a country of interest for the quality of its IT workforce, Poland for its engineers, but there are no solid plans as yet.

About HITACHI Hitachi Ltd, is a leading global electronics company with approximately 333,150 employees worldwide. Fiscal 2014(ended March 31, 2015) consolidated revenues totalled 9774.9 billion JPY (81.5 billion USD). In Europe, the group has many sales offices, as well as production sites of automotive components in Germany, UK and in the Czech Republic. Air conditioning production is located in Spain. Hitachi has many years of experience as a leading supplier of high-speed trains such as the Shinkansen (bullet train) for the Japanese and international markets. It manufactures trains, as well as offers maintenance services, ICT expertise for transport operating systems and consulting services on energy efficient operation. Hitachi has a 80% market share of traffic management systems in Japan. For their domestic transport business in Japan, the group works closely with JR-East, one of the major players in this sector, and with other JR group affiliated companies.

TESTIMONIAL 4: Railways Business Potential in Europe

Mr Takeuchi says that his company sees EU as a potential market to expand, especially in the Central and Eastern part of the EU.

GBMC Interview with: Mr Yasushi Takeuchi, Deputy Director, JR East – Brussels Branch, Brussels, Belgium. www.jreast.co.jp, www.j-trec.co.jp

_________________________________________________________________________

JR East In the EU, JR East had so far shared offices in Paris. A Branch office, which is also a Sales office, was opened in Brussels, Belgium, in 2013. The location was chosen due to the fact that both international railways associations UITP and CER were based in Brussels. The selection was also favourable due to its ideal location to gather information and for the reason that the Visa procedure only took 1 month, compared to some other countries. Mr Takeuchi, Deputy Director of the Brussels Branch Office, says that his company sees EU as a potential market to expand, especially in the Central and Eastern part of the EU. The group is more active in Asia, as it provides consulting services through the affiliated company JIC. The Belgian office is for the moment collecting data in an attempt to globalize business and its territory extends to the EMEA region (EU, Middle East and Africa). In 2012, JR East bought (M&A) train manufacturer Tokyu Rolling Stock Corporation. It is now renamed as J-TREC. JR East has its own train manufacturing plants, but the acquisition of Tokyu Rolling Stock provided the group with the technology and know-how to produce almost any type of rolling stock including high-speed trains. The JR East group actively conducts R&D projects in Japan and hold patents for many of the parts used. National Irish Railways has purchased Passenger Train Carriages made by the former Tokyu Rolling Stock in the past. In Japan, JR East uses parts from EU manufacturers for its domestic trains. For example, German brake system manufactured by Knorr-Bremse is used for the new generation series E5, E6 and E7 rolling stocks. JR East also uses rail fastening systems made by Pandrol, UK. The company is looking (in Europe) for any new technology or product not available in Japan.

In 2013, Alstom and Japan Transport Engineering Company (J-TREC) signed a Memorandum of Understanding (MOU) to jointly assess the light rail transit and tramway markets. This agreement will lead both companies to jointly contribute to the modernisation of existing tramway lines and the development of new lines in Japan. JR East agreed to actively develop business for the “Citadis” brand (which is well established in Europe) in the Japanese market. In 2015, JR East has so far already organized Suppliers Days in 4 different countries: Germany, France, Italy and Belgium. The tours opened up a dialogue with over 190 participants from 159 different organisations, including rolling stock suppliers, suppliers of parts and technologies or trade organisations representing them JR East presented various topics ranging from the overview of their company, operations and competitive situation in Japan, R&D and procurement. Over 10 experts from the headquarters in Tokyo and R&D centre attended to explain and answer various questions put forward by the participants. This initiative reflects their desire to identify potential collaboration partners in European market, as well as to explain the challenges and opportunities of working with them.

About JR East (East Japan Railways Company) JR East was incorporated in 1987 after Japanese National (JNR) was divided into 6 regional passenger transport companies, 1 freight company, several other small companies in the information, telecommunications and R&D fields. JR East run the operations on former JNR lines in the Greater Tokyo Area, the Tohoku region and the surrounding areas. JR East operates all of the Shinkansen (Bullet train) high speed rail lines, North of Tokyo. JR East aims to reduce its carbon emissions by half, as measured over the period 1990-2030. This would be achieved by increasing the efficiency of trains and company-owned thermal power stations, as well as by developing hybrid trains.

TESTIMONIAL 5: Aircraft Business Potential in Europe

“In order to become successful in the European market, Mitsubishi Aircraft Corporation believes it is necessary to have a base here to understand and judge market conditions and to reach out widely to the industry. The EU is an extremely attractive region because being here allows us to have access to the biggest economic bloc in the world. The sheer size and vitality of the EU market ensures success for companies that take advantage of the favourable business environment which has been created.” GBMC Interview with: Mr Yoshihisa Kumagai, President, Mitsubishi Aircraft Corporation Europe BV, Amsterdam, The Netherlands www.mrj-japan.com

According to Mr. Kumagai, President of Mitsubishi Aircraft Corporation Europe B.V., “The Netherlands was selected due to its central location, proximity to potential airline customers, as well as its favourable business climate resulting from tax treaty agreements with Japan. The Netherlands has been greatly supportive. Mitsubishi Aircraft Corporation Europe B.V. is one of many Japanese companies that have decided on The Netherlands as their EU base. However, as the MRJ program expanded, Mitsubishi Aircraft also realised the necessity of being in close proximity to business partners based elsewhere in Europe. Therefore, a supplier quality assurance oversight office was established in Munich.” Mr. Kumagai comments on the advantages of investing and doing business in Europe are that: “In order to become successful in the European market, Mitsubishi Aircraft Corporation believes it is necessary to have a base here to understand and judge market conditions and to reach out widely to the industry. The EU is an extremely attractive region because being here allows us to have access to the biggest economic bloc in the world.” He is positive regarding the EU market, emphasizing “The sheer size and vitality of the EU ensures success for companies that take advantage of the favourable business environment which has been created.” The EU Single Market characteristic most appreciated by the company is its “favourable climate for businesses to grow over borders.” MITSUBISHI AIRCRAFT CORPORATION EUROPE BV Mitsubishi Aircraft Corporation Europe B.V., established in May, 2011, is a locally incorporated, wholly-owned subsidiary based in Amsterdam, The Netherlands. The main purpose for the European office is to understand market needs, increase

sales, and foster public relations throughout Europe, Middle East and Africa. Moreover, the office (8 employees) considers promoting the Mitsubishi Aircraft brand of key importance in order to enhance awareness of the game-changing Mitsubishi Regional Jet (MRJ). Europe is seen as one of the major markets for regional jets. Over the next 20 years, Mitsubishi Aircraft forecasts demand for 5,000 regional aircraft with Europe accounting for 20%. Hiromichi Morimoto, President of Mitsubishi Aircraft Corporation, notes: “We have a wide spectrum of potential customers in Europe showing strong interest in the MRJ. Mitsubishi Aircraft expects the Amsterdam office to grow our presence in the region and drive new orders." In October 2013, Mitsubishi Aircraft Corporation established a Quality Assurance Department in Munich. A branch of the Amsterdam office, the Munich office is staffed by three employees in charge of overseeing ongoing work of Mitsubishi Aircraft and its European partners. With an increase in aircraft systems QT (Qualification Test) and inspections as the program evolves, the company concluded that a QCD (Quality, Cost, Delivery) site located near partners would facilitate the business and strengthen working relationships. Dr. Johann Niggl, Executive Director of Invest in Bavaria, the Business Promotion Agency of the Free State of Bavaria welcomed the establishment of this Quality Assurance Department saying, "We are happy to welcome Mitsubishi Aircraft Corporation to Bavaria. The presence of such a global aerospace player shows once more the relevance of Bavaria as a leading aerospace region." MRJ program suppliers in Europe include 2 in Germany (former Eurocopter, now Airbus-Helicopter, supplies the MRJ passenger, service, and cargo doors), 3 in France and additionally 2 in the UK. Mitsubishi Aircraft Corporation has already entered into a number of successful partnerships with EU companies with their roles as invaluable and experienced systems suppliers or aviation industry consultants. “Mitsubishi Aircraft Europe has nurtured wide-ranging and deep relationships not only with major and regional airlines, but with our program partners and experts based throughout the EU. Having a business base in the EU allows us to meet our customers’ needs quickly and efficiently. We like to say that EU-based airlines that select the MRJ are investing not only in themselves and the aviation industry, but also in locally-based suppliers of Mitsubishi Aircraft Corporation. In other words, it can be said that the MRJ program’s EU-based suppliers and partners are investing in the future of the EU and its aviation industry.” On an EU-Japan FTA: “While we cannot comment on direct sector benefits of an EU-Japan FTA because we have already worked with companies herein the EU and have leveraged the advantages of being EU-based for a good number of years, we believe that an FTA bodes well for Japanese and EU companies that become MRJ program partners down the road.”

About MITSUBISHI AIRCRAFT CORPORATION Mitsubishi Aircraft Corporation commenced operations on April 1, 2008 for the purpose of development, production, sales and customer support of the Mitsubishi Regional Jet (MRJ). The company is capitalized at 100 billion yen by shareholders that include Mitsubishi Heavy Industries, Ltd. (MHI), Mitsubishi Corporation, Toyota Motor Corporation, Sumitomo Corporation, Mitsui & Co, Ltd., Tokio Marine & Nichido Fire Insurance Co., Ltd., JGC Corporation, Mitsubishi Electric Corporation, Mitsubishi Rayon Co., Ltd., and the Development Bank of Japan. Mitsubishi Aircraft is headquartered in Nagoya with offices in Tokyo, Dallas, and Amsterdam. The company employs approximately 1,500 and has commissioned manufacturing of the MRJ to MHI. About MITSUBISHI REGIONAL JET (MRJ) Mitsubishi Regional Jet is a family of 70 to 90-seat next generation regional jets that will offer top-class operational efficiency and outstanding cabin comfort. Featuring a game-changing engine and state-of-the-art aerodynamic design, the MRJ will significantly cut fuel consumption, noise and emissions, meeting the latest noise regulations (ICAO Chapter 4) and emission requirements (ICAO CAEP6), as well as exceeding future environmental standards. The aircraft will be the quietest and cleanest regional jet in its class. The MRJ is powered by Pratt & Whitney Pure Power® PW1200G engines that deliver significant fuel savings and operating costs, alongside benefits for the environment and communities.

TESTIMONIAL 6: Air-conditioning Business in Europe

“The EU is a huge market of more than 500 million people, without borders – meaning easier trading - , with a strong single currency, the Euro – meaning no exchange risk – and a gradually harmonised economic policy. Solidarity and priority given on education and infrastructure helps to create a promising single market, with strong environmental awareness and energy related legislation which, for companies like Daikin, means strong business opportunities.” “Products from Europe, for Europe” GBMC Interview with: Mr Frans Hoorelbeke, Chairman, DAIKIN Europe NV, Oostende, Belgium www.daikin.eu

DAIKIN Europe

Daikin sees future growth and potential in the EU market, as markets are gradually changing to more environment friendly and energy friendly solutions, but also towards total comfort solutions. The company considers the whole of its long-term investments (in time and assets) as an EU Success Story, as the company grew from a small business to a market leader in Europe. Daikin Europe N.V. (DENV) is a fully owned subsidiary of Daikin Industries Limited, a multinational corporation. In 1972, Daikin Europe N.V. (DENV) was set up in Ostend, Belgium. It is now the headquarters for Daikin’s European development, production, administration, sales and marketing activities throughout the Europe, Middle East and Africa region, with a strategic office located in Brussels. On Thursday 3 December 2009 Daikin Europe N.V. became an “Ambassador of West-Flanders”. Since the company has a history of more than 40 years in Belgium, Mr Hoorelbeke provides his opinion on the investment advantages offered by this country: “The country provides a good industrial environment, no need to go far to find good subcontractors, suitable suppliers and services. Both EU and NATO’s decision making is based in the country. Further advantages are: the highly skilled, loyal and multilingual workforce, the diplomacy skills (being a small country), the high education level, the production of high value added, technological advanced products, the high productivity ratio and flexibility – meaning a quick adjustment of production to fluctuating market demand – are tools to compensate the rather high labour cost.”

In 2004, Daikin’s production capacity expanded with the establishment of Daikin Industries in the Czech Republic with a production plant in Plzen, followed in 2006 by a second factory established in Brno. Among the investment opportunities offered by the Czech Republic, Mr Hoorelbeke mentions the following: “Availability of a good workforce at low labour cost compared to other parts of EU, combined with attractive investment incentives. From its side, Daikin offers multiple training for its staff, in order to improve their skills, which opens better career opportunities and creates a higher loyalty to the company.” Daikin has also many subcontractors in the Czech Republic, Slovakia, Poland and Romania, where costs are lower. Regarding the EU-Japan FTA, Mr Hoorelbeke considers that: “It can only be good, especially reaching those common shared goals. The key area of interest for us is Renewable and Eco-related businesses.”

About Daikin’s Operations and Investments in Europe Daikin is a global manufacturer and supplier of HVAC (heating, ventilation and air conditioning) equipment, including heat pump and refrigeration solutions. The company provides indoor climate management solutions to meet the changing needs of residential, commercial and industrial customers. The Daikin Europe Group currently includes a Headquarter, 5 production facilities, 17 affiliated companies, 5 sales offices and a whole network of independent distributors and sales contacts in the EMEA region. The company ended financial year 2012 with a consolidated net sales of € 1,846.2 million and an operating result of € 120.2 million. Across the entire Daikin Europe Group, the company employs a staff of over 5500 employees. Daikin presence in Belgium: 1700 employees in Oostende and Brussels. Daikin Europe NV’s production site in Ostend (Oostende in Dutch) is the most advanced plant of its kind in Europe with over 135.000 m2 of production and administrative space dedicated to manufacturing heat pump, air conditioning, heating and refrigeration solutions. The factory in Ostend was the first production facility of the Daikin Europe Group and opened almost four decades ago. Daikin presence in the Czech Republic – 1800 employees in Plsen and Brno. In 2004, Daikin’s production capacity expanded with the establishment of Daikin Industries Czech Republic sro (DICz), a production plant at Plzen. In 2006 a strategic decision was made to set up a second factory in the Czech Republic: Daikin Device Czech Republic sro (DDCz) at Brno, to produce compressors for the European factories. Daikin presence in Italy: 420 employees in Checchina. Located in the South of Rome, on a site with substantial government incentives, Daikin Applied Italy (factory) is specialised in innovative equipment options and system solutions to reduce energy consumption in large buildings. Daikin presence in Germany: 330 employees in Güglingen. The expansion of Daikin Europe’s production facilities continued in 2008 with the acquisition of the German heating manufacturer, Rotex Heating Systems GmbH (Güglingen). The Rotex factory produces gas/oil condensing boilers, solar panels, underfloor heating and heating

system components. The reason behind the acquisition was in the technical know-how in heating applications and the manufacturing experience of Rotex staff combined with the engineering know-how of Daikin Europe creates synergies for the Daikin group to be more successful in the heating market and the Renewable Energy solutions. About Daikin’s Investments in European Research and Product Development The European Development Centre was built in 2013 to develop products specifically suitable for the European market. This provides the company with a significant competitive advantage in the region, by producing and selling “Products from Europe, for Europe”, and to ensure that they could respond effectively to European market needs. High added-value Production facilities are located close to end-user markets (80% is produced in the market). Their belief is that only by being in the market, they can better understand what the market demand is and in this way ensure optimized lead times to all markets. It has been an investment of around € 13 million, mainly in technology and infrastructure. It began with building of high-tech testing rooms including a test chamber where DENV engineers can simulate all of the climatic conditions which may occur in any of the 27 European countries. This allows them to address the demands of a complex and diverse European market. The Centre has satellite locations in the Czech Republic and Germany (ROTEX). Renowned for its heat pump expertise, the company has the technologies that can offer environment-conscious and energy-efficient alternatives to traditional heating solutions. As heat pumps rapidly gain a greater share of the heating market, the European Development Centre will help to drive product innovation. Daikin’s HVAC business is now expanding more towards Heating business. Product Success Stories are: Emura designed in Italy has won a Design Award in 2010, and Nexura designed in Germany (both for residential markets). Recently the Altherma HYBRID was launched, which is a combination of a gas boiler and a heat pump. Daikin’s Environment Research Centre Growing international concern for the environment has resulted in a steady increase in regulations and standards tackling environmental issues, which could add to the risks and costs of doing business but could also create opportunities. Therefore, Daikin Europe NV’s Environment Research Centre was particularly established to make full use of these opportunities.

TESTIMONIAL 7: A Merger & Acquisition Success Story in Europe

“With its long history, Europe is a powerhouse of Science, springing from talented people in many international calibre academic institutions.” “Horizon 2020, this ambitious innovation drive from the European Union, creates a favourable environment for the R&D efforts of HORIBA companies in Europe.”

GBMC Interview with: Dr Masayuki Adachi, President & CEO, HORIBA Jobin Yvon SAS, Saclay (Paris area), France www.jobinyvon.com, www.horiba.com

HORIBA JOBIN YVON “R&D is excellent in France. The French government offers tax shelter, great facilities, within a mature continent market.” says Dr Adachi, President of HORIBA Europe Holdings, and also Senior Corporate Officer of HORIBA, Ltd (in Japan). Installed in the Paris-Saclay campus, HORIBA Jobin Yvon benefits from both FP7 funds and French Tax credits, which are available to EU and French established R&D centres. Dr Adachi underlines that the advantages of an acquisition (M&A) is to benefit from the local experience and from the links with the EU academic network. He also thinks that there is some future expansion to be expected in the EU Medical sector. Dr Adachi comments upon EU strengths and opportunities for future innovation as follows: “With its long history, Europe is a powerhouse of Science, springing from talented people in many international calibre academic institutions. However, this core scientific strength does not convert enough into a business advantage for the region, with products and services able to capture global market share. As industrial competition intensifies to invent answers to tomorrow’s consumer requests and social needs, Europe needs to rejuvenate its wealth creation machine in order to sustain its progressive social model and keep the European dream alive. Faced with a difficult economic period, when imbalanced public budgets cannot be called to rescue, European entrepreneurs will have to embrace a more open approach to innovation where they can leverage not only academic discoveries but also the capabilities of partners along the value chain. Given the cultural diversity within Europe, this is both a challenge to overcome existing barriers to cooperation and an opportunity to bring to market unique solutions.” He has also positive comments about Horizon 2020: “This ambitious innovation drive from the European Union creates a favourable environment for the R&D efforts of HORIBA companies in Europe.”

About HORIBA’s Operations and Investments (Acquisitions) in the EU The HORIBA group employs worldwide approximatively 5,000 people, among which 1,700 are based In the EU. Therefore, the group’s global Human Resources Management policy. It is the world market leader in Automotive Exhaust analysis and, in Europe, HORIBA Holdings Europe has a turnover of €400 Million. In Europe, the company has been conducting acquisitions:

In 1996, the company acquired ABX in Montpelier (South of France, 600 employees) in the Medical business.

In 1997, Jobin Yvon became part of the HORIBA group.

In 2004, acquisition of the mechatronics division of Schenk in Germany in the Auto equipment testing business.

Nowadays, HORIBA runs factories in the Czech Republic (50 employees), in Germany (400 employees) and in UK (250 employees). There are also Sales and After-sales service offices in Sweden, Italy and Spain, as well as, a Sales office in Romania looking also after increasing sales in other Eastern EU Markets. Finally, there are plans to develop the Czech factory but this would be production expansion for the Chinese market (for exports from the Czech Republic to Germany, then to China, which is HORIBA’s biggest market). Dr Adachi views the Czech Republic as a country technically strong in mechanics, with a great industrial past and providing a highly skilled workforce. About HORIBA’s R&D centres in the EU French Research facilities are located in Paris (Saclay campus), Monpellier (South of France) and Longjumeau (in the heart of the French Optics Valley). Actively involved in EU funded FP7 research (various) projects, the company is usually invited to join as industrial partner by its own clients or academic contacts. HORIBA Jobin Yvon R&D teams are granted more than 10 patents worldwide each year. The study and manufacture of diffraction gratings remains their domain of excellence, with only a few competitors worldwide. About Jobin Yvon’s History The famous “Ecole Polytechnique”, where Mr Jobin and Mr Yvon graduated from, used to be located near La Sorbonne, Paris, France. Pr Fresnel teaching at the same university was a lens inventor and a major science contributor in Optical Science. The original company Jobin Yvon manufactured the lens invented by Pr Fresnel and was a spin-off of the “Ecole Polytechnique”. The company came close to bankruptcy in the early eighties and, at the time of acquisition by HORIBA in 1997, it was under a restructuring Leverage Buy Out. President Horiba was familiar with Jobin Yvon’s products from his academic studies. Although not the highest bid, the LBO sellers favoured HORIBA due to their shared valued in business goal, family business style and long term vision for the company. The respect for Jobin Yvon is evident, as shown in the current company name. The Ecole Polytechnique is now located within the same Paris-Saclay campus as HORIBA Jobin Yvon’s state-of-art R&D centre. Jobin Yvon has in one way returned to its roots.

TESTIMONIAL 8: A R&D Success Story in Europe

“HORIBA is very positive and active in taking part in various FP7 projects across the EU. The company views it as an opportunity for technical solutions finding as well as for business match-making. We are often invited to participate in these projects by our clients, who are FP7 project members, when specific measurement know-how is required. The advantage for us is the possibility to deepen the working relationship with our customers in the EU.” GBMC Interview with: Mr Akihito Nakai, Manager, HORIBA – Brussels Office, Belgium www.horiba.com ___________________________________________________________________

HORIBA

According to Mr Nakai, HORIBA’s business is closely linked to Corporate Social Responsibility, in that the company helps businesses to make sure their products meet the regulatory requirements. It is indeed necessary for companies to be aware of any changes and developments in EU regulatory standards in order to conduct their business according to these changes. He also points out that, due to the sensitivity of the tools necessary to conduct their business, HORIBA is required to be located close to its clients. From the mid-1990’s, strategic M&A activities improved the sales and profit balance among business segments until 2009, when the global crisis hit. Therefore, as he explains, “the challenge, for us, is to create a stable growth in the Medical-Diagnostic Instruments segment that will generate profits and will support the entire corporate group when downturns in the highly volatile Semiconductor segment and in the Automotive Test Systems segment occur at the same time.” Operations and Investments (Acquisitions) in the EU: 1,730 employees (in 2013) European Sales increased thanks to corporate acquisitions: 23% of the company sales in 2012 came from the EU region. The group invested in companies with unique technologies, like Jobin Yvon SAS (friendly M&A). After being approached by the French company facing financial difficulties in 1997, HORIBA became interested in this particular company for technological reasons. The group have also acquired ABX SAS (Montpelier, France) in 1996 in the Medical sector, as well as Schenck (Germany) in 2004 in the Automotive sector. As a result, the company has the following sites in Europe:

- Montpelier (France, M&A with ABX SAS in 1996) for Medical business. - Grenoble (France) for Semiconductor business - Saclay (Paris area, Jobin Yvon) for Semiconductor and Scientific business

- Longjumeau (France) for Semiconductor and Scientific business - UK for Automobile, Process &Environment, Semiconductor and Scientific businesses. - the Czech Republic for Automotive business - Germany (M&A with Schenck) for Automotive, Process & Environment, Semiconductor

and Scientific businesses.

In his view, rather than putting focus on reducing costs, HORIBA analyses business requirements and work efficiency as a whole. Therefore, the quality of the staff available in each country also reflects in their choices. The percentage of local staff in the group is high: 55.1% in Asia, 31.3% in the EU and 13.6% in the USA (Dec 2013). Importance of Research The group R&D expenditure is 8.58% of net sales. The new R&D Center in Saclay-Paris was opened in October 2012 as a core product development facility in Europe (for optical analysis instruments). The new facility serves as HORIBA European Research Centre, building on the local teams of HORIBA Jobin Yvon, a world leader in optical spectroscopy. Finally, Mr Nakai comments that, “in general, the skills and the quality of the R&D workforce are key factors in HORIBA’s investment decisions, more than the costs, for the production lots are usually relatively small. The French R&D workforce is excellent and also, the long-term employees in our UK operations are indispensable.” In 2010, the President of HORIBA, Mr Atsushi Horiba was awarded the “Légion d’Honneur” by the French government. It is the highest award in France. He had been awarded “L’ordre National du Mérite Officiel” in 1998 as well.

About HORIBA Dr Masao Horiba founded HORIBA Ltd, as a pioneering venture, in 1953 in Kyoto (Japan) while he was a student at Kyoto University. Already in 1945, he had set up the HORIBA Radio Laboratory in Kyoto and built the capacitor needed for the high-speed calculator (computer in today’s terms) for nuclear physics experiments. This capacitor became known for its functions and quality, and HORIBA decided to start manufacturing it commercially. The company was established and took its first steps as a manufacturer of measurement instruments. HORIBA is also famous as a maker of pH meters. Nowadays, HORIBA is a global group of companies providing an extensive array of instruments and systems covering various applications. The 5 Business Units are: Automotive Test Systems, Process & Environmental Instruments & Systems, Medical-Diagnostic Instruments & Systems, Semiconductor Instruments & Systems and Scientific Instruments & Systems. Worldwide employees are 5,530 of which 31.3% are in the EU (Dec 2012). Group turnover was 117.6 Billion JPY in 2012, distributed equally among EU, US and Asia. The company’s Global Market shares are: Emission Measurement Systems: 80%, Stack Gas Analyzers: 20%, Mass Flow Controllers: 43%, Raman Spectrophotometers: 30%, Gratings: 35%.

TESTIMONIAL 9: A Japanese Automotive Success Story in Europe

“Approximately 2.8 Millions units of the Yaris model were built in the

Valenciennes facilities, North of France, since 2001. The first model was

designed in Nice, South of France. The Toyota Yaris became the first

vehicle ever produced in France to be certified with the new “French

Origin Guaranteed” (“Origine France Garantie”) label, with more than

50% of its value manufactured in France.”

GBMC Interview with: Mrs Pascale Duverne, Internal & External Communication Department, TOYOTA Motors Manufacturing France, Valenciennes, France www.toyota.fr

TOYOTA Motors Manufacturing France (TMMF)

TMMF was established in Valenciennes in 1998 and presently employs 4000 people,

consisting in 3100 permanent staff and the rest temporary staff. The car production

site belongs to a new generation of TOYOTA plants: very compact, with 30% less

surface compared to other factories, and more energy efficient. Other Toyota

operations in France are located in Vaucresson (Sales), Le Pouzin (Logistics) and

Sophia Antipolis (Design studio, near Nice).

Why a factory in Valenciennes?

According to Ms Duverne, “the main reason for the choice is linked to geography: 300

kms area around Valenciennes corresponds to a population of 110 Millions

inhabitants, meaning potential customers. On top of that, the Chamber of Commerce

of Valenciennes was very active and had prior relationships with TOYOTA, so that

the process was faster and it gave the region an extra advantage. Other factors were:

- Good transport infrastructures (road, airport, river …)

- Close to Brussels where the European HQ and R&D centre are located, - Convenient facilities for Japanese expatriates. - Quality and quantity of the local workforce. - Good stakeholders and suppliers. - Easy access to 4 key markets: Germany, Belgium, UK and France.

All of the above resulting in the success of the production site.”

Yaris: a “Best Seller” made in the EU

The Toyota Yaris became the first vehicle ever produced in France to be certified

with the new “French Origin Guaranteed” (“Origine France Garantie”) label. This

certificate was created in order to help customers identify products that have more

than 50% of their value manufactured in France.

Approximately 2.8 millions units of the Yaris model were built since 2001 in the

facilities in the North of France. Production started in 2001 and the first Yaris model

was designed in Nice. The Total Investment since the beginning amounts to €

1.1 Billion. The current, third-generation Toyota Yaris was launched in Europe in the

summer of 2011, followed by the Toyota Yaris Hybrid in June 2012 and deep

facelifting in June 2014. The Yaris model accounted for nearly 22% of Toyota’s total

European sales in 2014.

In May 2013, TMMF started production of Yaris compact cars for exports to the US

and Canada. The model produced is the conventional gasoline-fueled Yaris and

annual export volume will be around 25,000 units on a full-year basis. An additional

€10 million has been invested by TMMF in order to build the Yaris to the specific

requirements of the new export market.

Ms Duverne believes that “the growing popularity in the US is due to a greater

awareness and more demand for environmentally friendly cars, but also worldwide

crisis input.”

The Yaris made in Japan (called Vitz in Japan’s domestic market) is exported to Asia,

while the Yaris made in Valenciennes is exported to EMEA, US and Canadian

markets. TMMF will now export its vehicles to more than 40 countries.

About Design and innovation in France1

Carole Favart, General Manager, Toyota Motor Europe, founded the “Kansei Design Unit” 9

years ago. The first Yaris was designed by her, and she believes that France is the

leading country when it comes to design and innovation. The design centre is located in

Sophia Antipolis, Nice. Core activities revolve around creating an “emotional experience”.

“French touch” is characterised by her as “the ability to intellectualise and generate

concepts, but also in which luxury and premium products are handled.”

“The appreciation of empty space is one of French design’s key concepts, just as is in Japan.

This vision of the world strikes a chord with the Japanese, because it echoes their own

culture.”

She also points out that “France boasts high-quality expertise handed down from generation

to generation and it is a real source of inspiration for us, which we try to incorporate in our

products. While we may take our cues from Japanese culture, we then adapt them to the

French market. Certain aspects of Japanese culture are highly appreciated in France and

vice versa. In fact, the two countries have a lot in common when you look at the subtleties.”

She concludes about Innovation in France that “Toyota cannot afford not to be in France, not

only for industrial reasons but also because of the unique vision we were just discussing.

There is a lot of healthy competition at play in the country. There are many bright

people here who are keen to create synergies. I believe we must consolidate the links

between research and design. There has to be a three-way synergy between

engineering, design and products.”

TESTIMONIAL 10: Japanese auto parts manufacturing in Eastern

Europe

“Europe is still the heart of the automotive innovation. With the leading of several World Class OEMs (like BMW, Mercedes-Benz, VW-AUDI, etc.), here you can take part in the development of future’s technologies. Whether you are a R&D or a production company, you can find well-qualified workforce fits for your needs …. ” GBMC Questionnaire answered by: Mr Andras Nagy, Plant Manager, Musashi Hungary Manufacturing Ltd, Hungary www.musashi.hu

MUSASHI Hungary Manufacturing Ltd Mr Nagy considers that the main EU regional strengths and comparative advantages are:

the available state of the art technology, combined with a qualified workforce,

the constant interaction with World Market leaders in an innovative environment,

the specific investment support incentives provided by national governments, particularly in Central and Eastern Europe.

Concerning the advantages of the Single Market, he states that the “free movement of people” is being the most important from an investment and business development perspective as it creates logistic and administrative flexibilities in terms of work force supply. According to him, Musashi Hungary’s most recent SUCCESS STORY in the EU is the company’s recognition and appreciation of JLR (Jaguar Land Rover, UK) acquired in a very short term by exceeding quality expectations and by supplying parts in a reliable way. Further comments are: “The fruitful partnership and the created mutual trust result in new business for our company. We can be proud to add our expertise and competence to JLR models’ global success. “ When asked about some specific EU market segment potential for his company, Mr Nagy underlines that: “Being an automotive part producer, we still focus on our core competences: pinpoint machining of various metal parts (engine shafts, transmission parts, steering components) and their assembly. We collaborate with our existing and potential clients in order to introduce our successful products in this market and adapt them to the special requirements of European car makers.” He also summarizes his company’s EU business strategy as follows:

Having a relatively narrow range of Musashi’s products represented in Musashi Hungary’s portfolio, extend locally the variety of products on offer.

Strengthened local engineering and development, instead of utilizing the Group’s (Headquarters’) related resources.

Specific solutions to special needs or challenges, instead of “standardized” responses delivered from Japan.

His additional comments are: “these directions can extend our flexibility and attractiveness since our clients’ expectations are proactive participation in projects from the early stage, as well as quick response to problems. “ Mr Nagy expresses his personal opinion about the EU-Japan FTA Agreement: “it will hopefully further strengthen Japanese companies’ competitiveness in Europe. Both the Japanese and European economy need a more active cooperation in order to be able to compete with the USA, China and India as well. Utilization of comparative advantages is fundamental for both parties’ success.” Finally, Andras Nagy has taken part in the HRTP (Human Resources Training) Program and his comments are very positive: “As a newly promoted Plant Manager and senior responsible for all operations in 2006, one of my roles was to create/develop a “communication/cooperation bridge” between the Japanese TOP management and the local management. The HRTP Program did help me a lot in understanding the Japanese way of business and thinking.”

About MUSASHI Hungary Musashi Hungary Manufacturing Ltd was established in March 2000 as the subsidiary of MUSASHI Seimitsu Industry Co and was the second European manufacturing unit of the group (after MUSASHI Auto Parts UK in 1986). The company is specialised in design and production of high precision car parts. Musashi is a strategic worldwide business partner of Honda. In 2001, the company built a 7,000 square meter factory in Ercsi, Hungary. Its purpose was to supply automotive parts to European car manufacturers as first tier and second tier supplier. It started producing ball joints of steering systems for AUDI at the beginning of 2002. In the same year, the company set up the first camshaft production line, where production for FIAT diesel engines started in 2003. Further supplier contracts assured continuous growth. As a result of these growth, the total area of the Hungarian plant increased up to 10,000 square meters. In the fifth year of its operation, the company realized a total annual revenue of over €40 million. The 2008 crisis had a significant negative impact on the operations of Musashi Hungary and European operations were consolidated: the product portfolio was extended with the products taken over from the Musashi factory in Wales and, since 2009, Musashi Hungary is the only production site left in Europe. Following the successful transfer project, the company has been producing camshafts for Jaguar Land Rover, control arms for Honda in Swindon, ball joints for certain models of Volvo and wheel hubs for the Hungarian Suzuki. There is also a Sales Office in Germany and a Distribution Center in the UK. By 2015 - as result of the European team’s efforts - Musashi Hungary could extend their business relationship with JLR by supplying oil pump shafts, renew it with Honda (camshaft) and AUDI (new generation of suspension control arms) as well as – according to the corporate’s EU strategy – they extended the product portfolio with differential assemblies.

TESTIMONIAL 11: Textile manufacturing in Eastern Europe

“Since our main market is in Europe, we have several advantages to have a factory in Europe: short lead times for delivery, direct communication to the market, easy access for travelling, no time difference, as well as the European Internal Market for Services.” “We have been operating in the Czech Republic since 1998. For the expansion of local production with this new technology, we based our decision on, among other things, the good work ethic and professionalism of the local workers. Favourable conditions, including the helpful approach of Czech authorities, also played a role in the decision.” (Akihiro Nikkaku, President of TORAY Industries)

GBMC Questionnaire answered by: Mr Mitsunori Hayashi, Sales Manager, TORAY Textiles Central Europe, The Czech Republic www.toray.cz

TORAY Textiles Central Europe A new facility in the Czech Republic: a recent Success Story “Japanese investors have long ranked among the most active foreign investors in the Czech Republic. Since 2000, with our support, they have invested more than CZK 106 billion here and have thus helped to create more than 22,000 jobs.” (Marian Piecha, CEO of CzechInvest) Thanks to tremendous sales growth (up to 5 times) in the EU market over the last years, the company was able to build a new line in Prostějov, in the Czech Republic, investing roughly CZK 1 billion and creating more than 50 new jobs. Production started in November 2013 at the new manufacturing facility. The production of plates for more ecological waterless offset printing is the first operation of its kind in Europe. Mr Hayashi further explains: “As a company trend, we are focusing on the Asian and US markets, however for the printing industry, we are much more focused on Europe. The EU market is huge and we are expecting a growth in Central and Eastern EU in the near future.” He also adds that Germany is TORAY’s core market and that it makes sense to have a factory in the Czech Republic, with easy access to other EU countries and high labour skills. The output of the new production line is intended not only for the European market, as Toray Textiles Central Europe will also supply its products to North and South American and the Middle East.

“Toray began construction of the new manufacturing facility in September 2012. At that time, the company was one of the first applicants for investment incentives pursuant to the amended Investment Incentives Act that had recently come into force. Now, after not quite two years, fifty people have found work here.” said Deputy Minister of Industry and Trade Milan Hovorka during the opening ceremony in January 2014. Finally, Mr Hayashi comments on the EU-Japan FTA agreement as follows: “Our product is very unique and we are a single source supplier in the market. Some of our raw materials are made only in Japan so we could expect lower production cost.”

About Operations and Investments of TORAY in the EU

Presence in the Czech Republic: Toray Textiles Central Europe s.r.o. (TTCE): Manufacture and marketing of basic fabrics for linings, airbag and waterless plates.

Presence in France: o Toray Carbon Fibers Europe S.A. (CFE): Manufacture and marketing of

polyacrylonitrile-based carbon fibers. o Toray Films Europe S.A.S. (TFE): Manufacture and marketing of PET films

and OPP films

Presence in Germany: o Toray International Europe GmbH (TIEU): Trading activities o Euro Advanced Carbon Fiber Composites GmbH (EACC): Manufacture and

marketing of CFRP parts and automotive components.

Presence in Italy: o Alcantara SpA: Trading activities, manufacture and marketing of

ALCANTARA*, unique covering material. o Composite Materials (Italy) S.r.l. (CIT): Production and distribution of carbon

fiber fabric and prepreg o Toray International Italy S.r.l. (TIIT): Trading activities

Presence in Spain: Toray Membrane Spain S.L. (TMSP): Marketing and consulting of water treatment membranes.

Presence in Switzerland: Toray Membrane Europe AG (TMEU): Importing and Sales of RO membrane element, UF/MF hollow fiber membrane modules, and submerged modules of flat sheet membrane.

Presence in the United Kingdom: o Toray International U.K. Ltd. (TIUK): Trading activities. o Toray Textiles Europe Ltd. (TTEL): Weaving and dyeing of polyester filament

textiles.

Presence in Hungary: Zoltek Zrt.: Manufacture and distribution of large tow carbon fiber composite materials

About the TORAY Group TORAY is an integrated chemical industry group developing its business in 23 countries and regions worldwide. The TORAY Group fuses nanotechnology into its operations, using organic synthetic chemistry, polymer chemistry and biotechnology as its core technologies. In addition to the Foundation Businesses of fibers & textiles and plastics & chemicals, TORAY likewise promotes the global development of IT-related products, carbon fiber composite materials, pharmaceuticals and medical products, environment & engineering including water treatment and progress in other pivotal business fields. Under the new long-term corporate vision, the Group will also expand Green Innovation Businesses to contribute to solutions for today’s increasingly critical global environmental issues, and energy and resource issues.

3.Testimonials from European Organisations “open” to Japan

TESTIMONIAL 12: Long-term Partnership between Japan and the Val

d’Oise Prefecture in France

“The latest talks with Mie Prefecture is very exciting development and I think it’s the beginning of the new relation with New Japan, the next generation especially with the new youngest ever governor!”

GBMC Interview with: Mr Jean-François Benon, Managing Director, CEEVO (Economic Expansion Committee of Val d’Oise) , Val d’Oise Prefecture, Paris area, France www.ceevo95.fr

VAL D’OISE The prefecture of Val-d'Oise has been engaged in exchanges and friendship with Osaka Prefecture (Japan) since 1985. It was initiated by the President of the General Council and the Governor of Osaka Prefecture at the time. It led to the signing of a Charter of The Department of Val-d'Oise and Osaka Prefecture 2 years later. Under this partnership agreement which celebrated the 28th anniversary in 2015, numerous exchanges have been established and developed by the two communities over the years. Despite the difference in the size of their population, they share many common aspects that unite them: a rich history, which local events have influenced, the developments in the country, a strong economic fabric based on the dynamism of a dense network of SMEs, the presence of an international airport of primary importance promoting openness to the world, and a shared commitment to supporting cultural institutions. With the support of the Economic Expansion Committee of Val d'Oise (CEEVO), discussions have been initiated in the cultural and sporting field, in the institutional area, but also in the economic, technological, and academic sectors. As an agency of Economic Development, CEEVO has participated in numerous trade shows and business conventions in Osaka since 1993, such as the "Global Business Conventions" (G'BOC), the "Global Venture Forum" (GVF) and "Industrial Center Scholarship Programs" (ISC).

Partnerships have also been established between enterprises of the two territories, and product exhibitions in both regions have been held in Val d'Oise and Osaka to encourage the promotion of their exports. In early 2015, Mr. François Scellier (First Vice President of the General Council of Val-d’Oise), who has been involved with the development of the relation between the two regions from the start has received the insignia of the “Ordre du Soleil Levant - Rayons d’or en sautoir”. His words were: “For about thirty years in the trade between Japan and France, having been brought to me happily invest in numerous concrete actions since 1985 on cooperation between our two countries, but also the reconciliation between our people……. Nearly 65 Japanese companies have indeed already chosen the Val-d'Oise to develop their activities in France or Europe and their number continue to increase constantly. In a few weeks we will have the pleasure of opening the industrial facility of the company Daito Kasei, a native of Osaka, who chose our department, with our support, to establish a manufacturing unit of raw materials for the cosmetics industry at Frépillon, which we look forward to … There are of course plenty of opportunities to seize to continue to develop such trade and such relations between France and Japan, at all levels, and I am convinced that among the new generations of our people, among students and among young innovative entrepreneurs that I have the good fortune to meet on the ground, many people will engage with passion in these Franco-Japanese adventures. My belief is in fact that, thanks to the experience I have gained over the years, our two countries, beyond the distance that separates them, actually have a lot of common points and convergent values to share. Whether the cultural field, the economic and technological field, the academic sector, tourism or gastronomy world, these are immense opportunities that are now open to new cooperation between France and Japan. “ (Extract from the acceptance speech at the Japanese Embassy in Paris, 2015.) One of the key cluster in the prefecture is “The Astec cluster “around the Bourget and Roissy airports. “Astech Paris Région” focuses on the aeronautics and space industries, fields in which France is one of the world leader. For this reason, the cluster is extremely important for the Val d'Oise, bringing together top-level companies located in the “département”, such as EADS, Dassault and Thalès, working together with CNES1, ONERA2 and the Ecole des Mines. The cluster is based on the development of innovation and competitiveness in aerospace-related industries in the Paris region on markets in which it is one of the world leader: business aviation, space transport and propulsion. The cluster encourages a culture of networking amongst local SMEs in order to support the work of equipment manufacturers and is positioned upstream in the industry. It brings together companies supplying manufacturers worldwide (engine manufacturers, flight computing specialists, undercarriage manufacturers, etc.) and industrial players involved with markets which are quite distinct from Airbus (rockets,

business aviation, defence, etc.), although their origins are sometimes aviation-related. The research projects generated by the cluster fall within four subject areas: propulsion and equipment, on-board power supply, materials and structures, and vehicle architecture. The challenge is to enable French industry to take its place in European research programmes on « Green Planes », which will be lighter, more economical and quieter than current models. Mr. Benon, who is the Managing Director of the Economic Expansion Committee of the Val d’Oise (CEEVO), commented on the advantages of having a business in Val d’Oise which has already attracted so many …. ”The latest talks with Mie Prefecture is very exciting development and I think it’s the beginning of the new relation with New Japan, the next generation especially with the new youngest ever governor!” Among the achievements of CEEVO, Mr. Benon refers to CEEVO’s matching role in the Aerospace sector favouring contacts between Dassault and companies from the Nagoya Astec cluster. He also points out the matching of the “Cosmetic Valley” pole of Val d’Oise with the Saga prefecture in order to start a cosmetic cluster in Saga (Japan). Finally, Mr.Benon stresses the importance of long-term plan of Val d’Oise to reinforce not only the business but also the cultural, sport, touristic and academic relationships with Japan. Technological exchanges were also developed over the years in several areas: It is the case of, for example, the cooperation established between the groupings of Osaka companies and Val-d'Oise ones specialised in the manufacture of telecommunications equipment for microsatellites (that is, partnership agreements signed between the "Club Val-d'Oise SAT" and the "Astro Technology Sohla" Group in Higashi - Osaka). The network of companies « Val d'Oise SAT » club was first formed in 2003. It is made up of companies in the Val d'Oise and the Yvelines whose business includes applications or services relating to the design, manufacture or operation of satellites. The club was formed after a meeting between some thirty companies in the Val d'Oise working in this industry and a delegation from the Japanese group of industrialists, ASTRO TECHNOLOGY SOHLA, which is made up of some one hundred specialist companies in Osaka province, Japan. This group of Japanese industrialists has launched a project to create a microsatellite as part of a programme using the resources of SMEs in the Higashi-Osaka urban district, with the support of the local and national authorities. The network encourages experience and information-sharing between members and skill-sharing to gain access to new markets by means of structured offers, as well as taking part in many European-based programmes relating to the satellite industry in the United Kingdom, Germany, France, Italy, and Belgium. The members of the Club

lead workshops in higher education institutions in the Val d'Oise such as the ENSEA, relating to targeted research. Exchanges also take place with the members of the Val d'Oise Measurement. About Val d’Oise: Located a few kilometers north west of Paris, the Val-d'Oise is a French department which enjoys a privileged location as the "front door" open to the world, thanks to the presence International Airport Paris Roissy Charles de Gaulle on its territory. With a population of nearly 1.2 million inhabitants, the number has more than doubled in less than 35 years. The department is one of the three youngest French Departments with the average age of its inhabitants is 34 years and six months. Today, one in three of the Val-d'Oise is under 20 years of age. Meanwhile, the Val-d'Oise benefits both protected natural areas (forests, natural areas, agricultural areas, historical and cultural sites ...), with 60% of its area is classified as a Regional Natural Park (PNR). The most urbanized part of the Val d'Oise include cities easily accessible from Paris, but also business parks bringing together companies specializing in many economic and industrial sectors: automotive supplier and aerospace, mechatronics, systems Embedded electronic, cosmetic and health, telecommunications and applications for mobile phones, or manufacturing equipment and analytical measures ... Nearly 3,000 hectares of surfaces are currently allocated in the Val d'Oise to over 150 business parks, which is equivalent to over 2% of its territory. The economic poles of Cergy-Pontoise and Roissy Charles de Gaulle airport, and have significant land surfaces hosting companies available immediately. In addition, 21 business parks already host more than 1,000 employees each. Moreover, 3 of these business parks already benefit from the label "Technopole". The economic structure of the department of Val d’Oise is composed by a large majority of SMEs. The Oise Valley hosts many large companies that have a key role in its economic dynamics. Head offices and industry groups, nationaly or international renown have chosen the department. The agglomeration of Cergy-Pontoise, the industrial basin of Argenteuil-Bezons ("Les Rives de Seine"), and the area of Roissy-en-France (near the Charles de Gaulle airport) host a significant number of such companies: 3M, Spie, BP France, Johnson Controls, Valeo, Air France, Morpho, Dassault, Sagem (Safran Group), EMC², Thales, Fujitsu Siemens, Kubota, Akebono, General Motors, Yamaha, Airbus, Nielsen, Brother, Delphi, Atos, Huawei and etc.. These companies are major contractors and use a dense and diversified network of subcontractors. A large share of industrial production in the Val d'Oise is derived from many midsize enterprises operating on its territory. They are directed in particular to a series of technology-based business segments: mechanical manufacturing and industrial equipment, mechatronic activities, construction and aircraft maintenance, digital services, electronic systems and embedded intelligence to devices safety and risk management, cosmetics, high value fabrications …. 9 clusters in Val d’Oise certified by the French Government:

(System @ tic Paris Region) in the areas of software and Complex Systems

(Medicen Paris Region) in the areas of health and biotechnology

(Cap Digital) in the areas of image, multimedia and digital life

(Mov ' eo) in the areas of road safety and sustainable mobility

(ASTech Paris Region) in the areas of aeronautics and space

(Finance Innovation) in the areas of the financial industry

(Elastopole) in the areas of rubbers and polymers

(Cosmetic Valley) in the areas of cosmétique

(Advancity) in the areas of city and sustainable mobility. The clusters are also relayed in recent years by business networks that bring together the territory in several areas of expertise (Mechanical Committee Network "Measure" Eco-Industry Network, Network Coaxion, Val d'Oise SAT , Network S²R² (security and risk management), and Network Automotive Vehicles in Ile-de-France (RAVI), Plato ...). Astech Paris Région The cluster also plays a complementary role alongside System@tic Paris Région and Mov'eo. Several accredited projects already feature Val d'Oise companies as partners, including the followings:

SEFORA, with the University of Cergy-Pontoise

THERMELEC, with Madep (TPE at Cergy-Pontoise)

RESACOMP, with Axson (Cergy-Pontoise) and Cimpa Airbus

INOSIS, with Lisi Aerospace (Cergy-Pontoise)

CNES: The French Space Agency

ONERA: French aerospace research centre

Research and further education

University of Cergy-Pontoise (UCP)

ENSEA: Graduate School for Electronics and Applications

EPMI: School of Electricity, Production and Industrial Methods

Public laboratories

ECIME (ENSEA-UCP): Instrumentation and Electronic Modelling Laboratory

ECS (ENSEA): System Command Laboratory

ETIS (ENSEA-UCP-CNRS): Signal and Image Processing Laboratory

LEEVAM (UCP): Energy, Environment, Materials and Valuation Laboratory

LERMA-LAMAP (UCP-Observatory of Paris-CNRS): Astrophysical Radiation and Matter Research Laboratory

LPMS (UCP): Materials and Surface Physics Laboratory

LPPI (UCP): Physical chemistry of Polymers and Interfaces Laboratory

MRTE (UCP): Study of airport noise pollution

SATIE (UCP-CNRS-ENS Cachan-CNAM): Information and Energy Technology Systems and Applications Laboratory

Private laboratories: DASSAULT Aviation, Sagem Groupe SAFRAN, THALÈS, JOHNSON CONTROLS AUTOMOTIVE, ELECTRONIC, AXSON

TESTIMONIAL 13: Business Aviation Opportunities in Europe

“As part of its international development, Le Bourget airport remains open to the world and keen to establish network with other international airports worldwide. So far the airport has established a close alliance with Greater Atlanta Airport. We would welcome such alliance with airports in Japan also, exchanging information and valuable experience related to airport and handler activities.”

“There are still space available (around 30 hectares) for industrial development, but, as our priority number one is to remain an operator, we intend to keep space available for welcoming major operators or manufacturers. For example, we would be delighted to welcome Gulfstream’s European maintenance centre or, in relation with Japan, Honda Jet’s (or MRJ’s) facilities for example!”

GBMC Interview with: Mr François Charritat, Managing Director, Paris - Le Bourget Airport & General Aviation Aerodromes (ADP), Le Bourget (Paris area), France www.aeroportsdeparis.fr

PARIS - LE BOURGET AIRPORT The airport was established as the first fully commercial airport in France and has celebrated its centenary in 2014, It is located just 7km from Paris in the Ile-de-France region. It is also 20km from La Défense. It is fully dedicated to business aviation, occupies in the area of 553 hectares. With 54,000 flights to or from 800 destinations (70 per cent of which were outside France) in 2014 alone. Paris-Le Bourget airport is home to every sector of business aviation, from charter companies and manufacturers to aircraft maintenance and flying training organisations. 75 companies are already established on site, of which 15 are executive charter firms and seven provide handling services. Among the most prestigious names include Jetex, Landmark, Signature, Dassault Falcon Service and the IXAIR Group. It is a home to one of the world’s oldest aviation show “International Paris Airshow”. At this years’ 51st show, more than 350 000 visitors have seen 120 aircrafts, while 2,260 exhibitors from 47 countries exhibited in the halls. Beside the Air show, the airport also hosts other major international conferences, among which the next UN COP 21 International Climate Conference scheduled to take place later this year. The airport regularly plays host to heads of state and governments, famous figures from around the world. It’s an ideal airport for Business

men and VIPs to tour Europe by business jet from Paris Le Bourget 24/24 7 days a week airport, stopping in various European cities. Mr. Charritat, Managing Director of Le Bourget airport, points out the advantage of the airport: “It’s the main business aviation airport in Europe, located close to Paris and to the main airport hub of Paris-CDG. There are 3star and 4star Hotel accommodations on the premise and many restaurants; conference centre and vehicle rental are also available. With all the facility in place and being close to Paris and La Défense, business customers from U.S., Middle East to China are increasing. And the wide range of handling agents allow the customer to make easily the better choice". There are currently 7 Fixed Base Operators including Jetex, Landmark, Signature, Universal, Skyvalet, Dassault Falcon Service, and more. Furthermore, there are a couple of based operators: Skyfirst, Ixair, WiJet, TAG, Master jet … Mr Charritat also adds, “Besides being located near Paris and at the crossroads of Europe, other key reasons for using the airport are that it is open all throughout the year with around the clock service, and it integrates all types of maintenance and services.” The aerodrome falls within the scope of an ambitious development project launched by the French government in 2010: the "Grand Paris" project, which dedicated the Le Bourget area as the aeronautical and exhibitions excellence cluster. A long list of companies are already established there, and operate in a wide range of sectors including the presence of major aircraft manufacturers, maintenance cluster, repair services and parts suppliers. Furthermore, there are 3 fuel providers, in-flight catering, other airport support services, dedicated firefighter services, research, testing, manufacture, and training. Aeronautical training of “Flight Safety International” is provided in English attracting many pilots from around the world. On site, the Dassault Falcon Services Training Centre trains business aviation pilots from all over the world. It is a Joint-Venture operated by Dassault and Flight Safety International with a pool of simulators (about a dozen). The airport’s Aeronautical Maintenance Cluster already hosts AIRBUS Helicopters’ factory (production and assembly of blades), Embraer’s maintenance centre and AFMAe’s training centre for non-flying personnel. Mr Charritat however insists on the following: “There are still space available (around 30 hectares) for industrial development, but, as our priority number one is to remain an operator, we intend to keep space available for welcoming major operators or manufacturers. For example, we would be delighted to welcome Gulfstream’s European maintenance centre or, in relation with Japan, Honda Jet’s (or MRJ’s) facilities for an example!” Finally, a last message he would like to convey to our readers is: “As part of its international development, Le Bourget airport remains open to the world and keen to

establish network with other international airports worldwide. So far the airport is included in the Hubstart alliance with Greater Atlanta Airport. We would welcome such alliance with Japan also, exchanging information and valuable experience related to airport and handling activities.” As to the advantages for Japanese passengers and operators to use Le Bourget airport, he comments as follows: “Presently, there is only a small percentage of passengers who flights in straight from Japan and there are only a few operators able to provide direct flights Tokyo – Le Bourget, corresponding to around 10% of the available fleet. It would be nice to increase that number in the future!” Operators providing this kind of service might do well to consider hiring Japanese staff and cater high-quality in-flight Japanese food to meet client’s needs. (Source: Paris Airport Le Bourget, HubstartParis)

About ADP (AEROPORTS DE PARIS) “Aéroports de Paris” (ADP) was created in 1945 as a public institution with a public service mission to build, operate and develop civilian airports in a 50-km radius around Paris. It includes Paris-Le Bourget airport as well as Paris-Charles de Gaule airport (Roissy), Paris-Orly airport and other smaller airports. In 2005, ADP was converted into a French Public Limited company (Société Anonyme). The first aeroplane, piloted by Désiré Lucca, landed at the Paris-Le Bourget site in 1914. In 1923, Paris-Le Bourget airport was established as the first fully commercial airport in France. In May 1927, Charles Lindbergh’s monoplane landed at the airport. Used as a base by German forces between 1940 and 1944, Paris-Le Bourget became a civil airport again in 1946, same year as when Paris-Orly airport started operations. In 1974, Paris-Charles de Gaulle airport was inaugurated and its Terminal 1 was opened. Since 1981, Paris-Le Bourget airport has been devoted entirely to business aviation. 54 400 “business movements” were recorded in 2013 at Le Bourget, where 450 Jumbo Jets land each year, mostly from the Middle East. 3500 people work at the airport, employed by Dassault Falcon services, Air France Industries, Cessna Aircraft, Embraer and AIRBUS Helicopters.

ABOUT GBMC

Based in Paris, GBMC (Global Business & Management Consulting) is a proactive Professional Service Provider and Global Business Consultancy specialised in the following four domains: - Europe-Japan Business Consulting: we offer different kinds of professional services targeted at Japanese companies approaching the European Market, as well as targeted at European companies approaching Japan or doing business with Japanese companies.

MARKET REPORTS (Europe, Japan)

FEASIBILITY STUDIES

JAPAN CONSULTING (B2C and B2B Marketing, Entry Strategy, help with Office Set Up ... )

JAPAN EXECUTIVE COACHING

OTHERS (Interviews, Business Support, Subscription services …) - Europe-Japan Cross-cultural Training & Lecturing: we offer different kinds of Europe-Japan related lectures, professional training, seminars and workshops. - Technical Markets & Strategy Consulting: we provide Business Planning & Strategy Making Consulting services on B2B Sales issues in Technical Markets, mainly targeted at Larger Industrial groups in need for external advice and expertise. We also carry out Business Coaching and Executive Coaching missions whenever requested. - Interim-Change-Transition Management Consulting: we assist Large Organizations in Change or in Transition, as well as provide Interim Management Services whenever needed. Our Specificities are: - we operate all over Western Europe (not only France) and Japan - our quality-work is customised to your needs (not standard) - we cover B2B Technical & Industrial Markets (like Energy, Automotive, Aerospace, ICT), with a cross-cultural perspective - we work in French, English and Japanese. Contact : info@gbmc.biz, www.gbmc.biz, www.gbmc-blog.biz

BIBLIOGRAPHY & ENDNOTES 1 Invest in France Agency website: http://www.invest-in-france.org/us