"The Comprehensive Survey on the International Business Strategy in Japan" January 10, 2001 Nomura Research Institute, Ltd. International Consulting Department Copyright (C) 2001 Nomura Research Institute, Ltd. All rights reserved.
Contents 1. Focus and characteristics of the survey P1 2. Outline of the survey P1 3. Survey results 1) Outlook for the Asian economy P2 2) Outlook for each company P3 3) Corporate presence in the Asian market P4 4) Corporate presence in the Non-Asian market P5 5) Needs for the international cooperation P6 6) Use of outer resources in selecting partners P7
1. Focus and characteristics of the survey * International Consulting Department (Naozi Kumagai as Senior Manager) at Nomura Research Institute, Ltd. has conducted annual surveys "International business strategy in Japan" since 1997 on those who are in charge of International business planning in listed on the Tokyo Stock Exchange. This research is aimed at having a clear grasp of the Asian economy from the standpoint of those who are in effect responsible for devising international strategies. * The survey of the year 2000 was carried out from November 15 to December 8. Another topic "Management on the international business and capital cooperation" was added to the questionnaire as well as the previous subjects, including "Outlook for the Asian economy" and "Corporate presence in the international market". [Inquiry about the survey] International Consulting Department, Nomura Research Institute, Ltd. TEL. 03-5255-1800 2. Outline of the survey * Conducted date November 15 to December 8, 2000 * Object Companies listed on the Tokyo Stock Exchange (except financial institutions such as banks, trading, insurance and non-banks) * Survey style Delivery and collection of the questionnaire by mail * Selected sample number 1204 * Number of responses 194 (16.1% of response) - 1 -
3. Survey results 1) Outlook for the Asian Economy * 130 (67%) evaluated the Asian economy in 2000 as "Very Good/Good". As for the outlook for the Asian economy in 2001, 85 (43.8%) expect it to be "The same level of this year" (72.4% in 2000) while only 17 (8.8%) foresee it to be "Bad". * The ratio of the respondents answering "Very Good/Good" about the Asian economy each year jumped to 53.7% in 1999 from 4.3% in 1997 and 1.0% in 1998. Outlook for the Asian economy 2000 2001 Very good 6 2 good 124 88 The same level of this year 48 85 Bad 13 17 Very Bad 0 0 Unclear 3 2 Total 194 194 Evaluation of the Asian economy (The ratio of "Very Good / Good") 70.0 60.0 50.0 40.0 % 30.0 20.0 10.0 0.0 4.3 1.0 53.7 1997 1998 1999 2000 67.0 2
2) Outlook for each company * 103 (53.1%) reported the business result of their own in 2000 being "Very Good/Good" (exactly the same ratio of 1999), substantiating the sound recovery from 19.4% (1997) and 9.3% (1998), along with 45.3% in 1999. As regards the outlook for 2001, 85 (43.8%) reported that it would be "The same level of this year" while only 15 (7.7%) accounted for the expectation to be "Bad". Outlook for each company Evaluation of each company (The ratio of "Very Good/Good" ) 2000 2001 Very good 15 2 good 88 83 The same level of this year 66 85 Bad 12 15 Very Bad 4 0 Unclear 9 9 Total 194 194 60.0 50.0 40.0 % 30.0 20.0 10.0 0.0 53.1 45.3 19.4 9.3 1997 1998 1999 2000 3
3) Corporate presence in the Asian market (1) Increasing corporate presence * 120 (61.9%) have considered inroads into China, while 64 (33.0%) place emphasis on Taiwan and 63 (32.5%) on Thailand. * China was also ranked at the first with 53.6% last year. (2) Decreasing corporate presence * With respect to the decreasing corporate presence in Asia, "Not Applicable" reached 55.7% by 108. Increasing corporate presence in Asia China Taiwan Thailand Hong Kong South Korea Indonesia Malaysia Vietnam India Singapore Philippines 38 38 35 26 21 20 18 16 64 63 120 0 20 40 60 80 100 120 140 Decreasing corporate presence in Asia Not applicable 108 Singapore 11 South Korea 8 Hong Kong 7 Taiwan 6 0 20 40 60 80 100 120 4
4) Corporate presence in the Non-Asian market (1) Increasing corporate presence * 116 (59.8%) are interested in inroads into the United States followed by 68 (35.1%) placing emphasis on Europe. (2) Decreasing corporate presence * 125 (64.4%) reported being "Not Applicable" about the decrease of corporate presence. Increasing corporate presence in the Non-Asian market Decreasing corporate presence in the Non-Asian market North America 116 Not Applicable 125 West Europe 68 Australia/Oceania 6 Central & East Europe 25 West Europe 6 Central & South America 23 Central & South America 5 Not Applicable 41 Middle East/Africa 5 0 20 40 60 80 100 120 140 0 20 40 60 80 100 120 140 5
5) Needs for the international corporation on the business and capital investment * 157 (80.9%) registered the need of international cooperation on the business and capital investment. * 99 (63.1%) referred the main reason as reinforcement of business followed by 74 (47.1%) considering diversification of various risks. Needs for the international corporation on the business and capital investment Reasons for the cooperation Reinforcement of sales 99 Not Necessary 19% Necessary 6% Necessary depending on the region 32% Diversification of various risks Reduction of costs Reinforcement of research and development 28 57 74 Necessary depending on the type of business 43% N=157 Fund-raising 15 0 20 40 60 80 100 COMPANIES 6
6) Use of outer resources in selecting partners * 67 (42.7%) mentioned American as potential partners while 65 (41.4%) would choose Asian. * 63 (40.1%) would find partners on their own followed by 43 (27.4%) using the Japanese financial agencies and 38 (24.2%) availing the Japanese trading. Location of the partners No areas of focus 51 Asian 65 European 46 American 67 N=157 0 10 20 30 40 50 60 70 Use of outer resources in selecting partners Japanese financial institutions Japanese trading Japanese consulting Foreign financial institutions Foreign consulting Not using outer resources 14 19 26 38 43 63 N=157 0 10 20 30 40 50 60 70 7 Copyright (C) 2001 Nomura Research Institute, Ltd. All rights reserved.