Financial Condition of the City of Nagoya Material

Transcription

1 Financial Condition of the City of Nagoya Material October 2013 Finance Bureau, City of Nagoya Inquiries Funds Division, Finance Department, Finance Bureau, City of Nagoya TEL: Fax:

2 1 Material Table of Contents The Attractive and Dynamic City of Nagoya 1 Nagoya Meshi Expo 2013 (September 27 to November 11, 2013) 2 Comparison of Entities Issuing Public Subscription Local Bonds 3 Number of Nagoya City Employees (Quota) 4 Implementation Status of Recommendations for Salary Scales of Nagoya 5 Number of Extra-governmental Organizations 6 Fund Status (Fund Balance as of the End of FY 2012) 7 Fiscal Structure of Nagoya (Revenue) 8 Fiscal Structure of Nagoya (Expenditure) 9 Special Account Settlement for FY Management Status of Extra-governmental Organizations FY 2012 (1) 15 Management Status of Extra-governmental Organizations FY 2012 (2) 16 Relation to Nagoya City Land Development Corporation 17 Relation to Nagoya City Housing Supply Corporation 18 Relation to Nagoya Expressway Public Corporation 19 Financial Statements for FY 2012 (1) 20 Financial Statements for FY 2012 (2) 21 Financial Statements for FY 2012 (3) 22 Financial Statements for FY 2012 (4) 23 Consolidated Financial Statements for FY Fiscal Data 26 Public Enterprise Account Settlement FY Management Status of Public Enterprises for FY Plan for Rehabilitation of Municipal Transportation 13 New Municipal Hospital Reform Plan for Nagoya 14

3 1 The Attractive and Dynamic City of Nagoya To Meitetsu inuyama Line To Meitetsu komaki Line Higashiyama Line Meijo Line Meiko Line Transfer station Kami Otai Shonai Ryokuchi Koen Shonai-dori Kurokawa Shiga-hondor i Kamiiida Ozone Nagoya Dome-mae Yada Tsurumai Line Sakura-dori Line Kamiiida Line Nagoya City Science Museum Hosts the world s largest planetarium (35 meters in diameter) and a -30 room where visitors can view images of the aurora borealis. (FY 2012 attendees numbered 1.3 million) Nakamura Nisseki Nakamura Koen Iwatsuka Hatta Takabata Honjin Joshin Sengen-cho Kamejima Kokusai Center Nakamura Kuyakusho (International Center) Nagoya Fushimi Osu kannon Meijo Koen Shiyakusho Marunouchi Kamimaezu Higashi Betsuin Takaoka Hisaya-odori Sakae Shinsakemachi Yaba-cho Tsurumai Arahata Kanayama Heian-dori Kurumamichi Imaike Chikusa Fukiage Gokiso Sakurayama Ikeshita Jiyugaoka Kawana Kakuozan Irinaka Sunadabashi Yagoto Chayagasaka Hoshigaoka Motoyama Kamiyashiro Issha Hongo (Higashiyama Park) Nagoya Daigaku Yagoto Nisseki Higashiyama Koen Shiogama-guchi Ueda Hara Fujigaoka Higashiyama Zoo & Botanical Gardens Opened March Number of annual visitors exceeds Asahiyama Zoo and is only second to Ueno Zoo making this Japan s No. 2 in terms of visitors. September 2013 marked the opening of one of Japan s largest Asian Elephant enclosures. (FY 2012 attendees numbered 2.08 million) Hibino Rokuban-cho Tokai-dori Mizuho kuyakusho Nishi Takakura Jingu Nishi Mizuho Undojo Nishi Sogo Rihabiri Center Mizuho Undojo Higashi Hirabari Akaike To Meitetsu Toyota Line SCMAGLEV & Railway Park The superconducting Maglev is on display and visitors can also enjoy one of Japan s largest railway dioramas and train operating simulators. There is enough here to hold one s interest all day long. (FY 2012 attendees numbered 0.68 million) Minato Kuyakusho Tsukiji-guchi Nagoyako (Nagoya Port) Temma-cho Demma-cho Myoon-dori Sakura Aratama-bashi -honmachi Tsurusato Nonami Narukokita Aioiyama Kamisawa Tokushige October 16, 2004 The Meijo Line, the first looped subway line in Japan Nagoya Castle Reconstruction of Hommaru Palace was launched in January 2009 as a symbol to communicate the art of monozukuri craftsmanship, the human spirit and the natural environment, Phase 1 was completed on May 29, 2013 with the opening of the Grand Entrance and Main Hall. (FY 2012 attendees numbered 1.47 million)

4 2 Nagoya Meshi Expo 2013 (September 27 to November 11, 2013) ---Celebrating Famous Dishes of Nagoya--- Misonikomi (Noodle in Miso Broth) Tebasaki (Deep-Fried Chicken Wingtips) Nagoya Meshi Expo 2013! Tenmusu (Rice Balls with Tempura inside) Miso-katsu (Pork Cutlet with Thick Miso Sauce) Hitsumabushi (Grilled Eel on Rice) Danamo Ebizabeth Hachimaru (Nagoya s mascot) Fabled to have been born in 1610, the same year as Nagoya. He loves people and can be found traveling around Nagoya. Ankake Spaghetti (Spaghetti with Spicy and Sticky Sauce)

5 Tokyo Tokyo Kanagawa Kanagawa Osaka Osaka Aichi Aichi Yokohama Saitama Saitama Chiba Osaka City Hyogo Chiba Hokkaido Hyogo Fukuoka Hokkaido Shizuoka Fukuoka Yokohama Nagoya Ibaraki Shizuoka Hiroshima Ibaraki Osaka City Hiroshima Kyoto Kawasaki Nigata Sapporo Miyagi Kobe Nagoya Fukuoka City Nagano Kyoto Gifu Kyoto City Gunma Nigata Tochigi Miyagi Fukushima Tochigi Okayama Saitama Sapporo Nagano Mie Gifu Kumamoto Gunma Kagoshima Mie Kobe Fukuoka City Hiroshima City 3 Comparison of Entities Issuing Public Subscription Local Bonds There are 54 issuing entities of public subscription local bonds in Japan. Of those, 34 are prefectures or regions and 20 are government-designated municipalities. (FY 2013) Among these, Nagoya ranks 12 th in local tax revenue and 18 th in population. Among governmentdesignated municipalities, Nagoya ranks third after Yokohama and Osaka City. (Billion yen) 4,200 1,600 4,000 1,400 1,200 1, , Comparison of Local Tax Revenue of Issuing Entities in FY Only 9 entities exceed Nagoya in terms of local tax revenue and only 15 entities exceed Nagoya in terms of population. Nagoya s financial capability and population compare favorably with those of prefectural/regional governments. (Per 10,000) 1,400 1,320 1,200 1, Comparison of Census Population of Issuing Entities in FY 2012 (October 1) In terms of local tax revenue, 10 entities in the top 30 are government-designated municipalities while 6 entities are government-designated municipalities in terms of population

6 Number of Nagoya City Employees (Quota) Nagoya is striving to reduce the number of municipal employees via innovative hiring strategies and downsizing/consolidating operations and has achieved a decrease of approximately 5,100 employees (approximately 17%) since FY Compared to the peak (FY 1980) of 33,390, municipal employee numbers have decreased by roughly 8,400 (approximately 25%). (Employees) 35,000 30,024 30,000 25,000 20,000 29,321 28,751 27,158 26,839 26,570 26,103 25,816 25,470 25,122 24,967 Including the reduction of 34 employees following the introduction of public-private partnership for managing public facilities (nursing homes), during FY 2013 overall headcount was reduced by ,000 10,000 5, Bureaus under the control of the mayor Corporate Bureau (Fiscal year) *With the establishment of the Hospital Bureau, employees engaged in hospital operation were reclassified from the bureaus under the control of the mayor to the Corporate Bureau starting in FY

7 5 Implementation Status of Recommendations for Salary Scales of Nagoya In light of various conditions including Nagoya s fiscal status, the city temporarily instituted salary and allowance cuts of administrators. Director General and Division Director: 2% salary cut Manager: 1% salary cut Basic monthly salary (recommended rate) Equivalence to monthly salary per year (in months) Bonus Year-on-year change (in months) Average annual salary of municipal administrators Monetary change (10,000 yen) Year-on-year change % % % % From July 2013, in efforts to address critical issues, such as regional revitalization, the city temporarily cut salaries by an additional 3% (until March 31, 2014). Director General and Division Director: 2% 5% salary cut Manager: 1% 4% salary cut Sub-manager and below: 3% salary cut % % % % % % % % *Note that recently an amount equivalent to 2% of salary was added to the monthly amount of regional allowance

8 6 Number of Extra-governmental Organizations Nagoya is striving to reform and improve extra-governmental organizations by: 1Promoting elimination and consolidation 2Reevaluating commitments 3Promoting voluntary and (Organizations) independent management By executing the: 1Plan for Reform of Extra governmental Organizations Plan for Intensive Administrative and Fiscal Reform 20 Nagoya has reduced the 54 extragovernmental organizations which existed in 2003 to 25 and will continue to strive for additional reforms (Fiscal year) *Entities whose capital investment and investment without compensation from Nagoya City account for more than a quarter of capital were used for the graph. Figures for numbers of entities in FY 2013 are as of April 1, 2013.

9 7 Fund Status (Fund Balance as of the End of FY 2012) Fund Balance Fund Overview (Million yen) Public bond redemption fund 210,906 Fund to secure financial resources for redemption of public bonds via planned funding (portion for bullet maturity amortization) (201,956) Financial adjustment fund 14,583 Fund to secure financial resources for bullet maturity amortization of public subscription bonds Fund to adjust financial resources between fiscal years by funding surplus financial resources and using reserve funds Special purpose fund 22,160 Large-scale fund for facilities maintenance 7,564 Housing security deposit reserve 4,342 Nagoya Castle Hommaru Palace restoration fund 3,664 International exchange program fund 2,270 Funds in which reserve funds and returns are used for special purposes or special programs Naka-ku district office management fund 1,294 Seven additional funds 3,026 Fixed fund 3,500 Land fund 3,000 Fund for acquisition of fine arts 500 Funds to be used as a fixed amount for the ongoing purchase/sale of land and fine art, etc. Total 251,149

10 8 Fiscal Structure of Nagoya (Revenue) (Billion yen) 1,200 Settled Amount of General Account Revenue 1,000 1,042 1, ,036 1,036 1,022 1, (Fiscal year) Municipal tax Local tax grants National treasury disbursement Municipal bonds Other

11 9 Fiscal Structure of Nagoya (Expenditure) (Billion yen) 1,200 Settled Amount of General Account Revenue (By Type) 1,000 1,035 1, ,031 1,029 1,018 1, Payroll expenses Assistance expenses Debt servicing Investment expenses Others (Fiscal year) *Individual amounts are rounded off, so the total may not agree with the sum of items shown.

12 Special Account Settlement for FY 2012 In addition to the general account, Nagoya has 12 special accounts and 7 public enterprise accounts. A special account is established in accordance with city ordinance when it is necessary to separate accounting of revenue and expenditure from the general account, such as a special operation funded by extraordinary revenue. Account Revenue Expenditur e Differenc e Description of operation (Million yen) National health insurance 218, ,312 2,385 National health insurance operation Medical care for those 75 and older 43,163 42, Medical care for the elderly 146, ,902 1,138 Provision of medical care for those 75 and older Provision of medical care for the elderly Nursing care insurance 1,455 1, Nursing care operation Agricultural insurance Agricultural insurance operation Market and slaughterhouse 7,744 7,744 - Loans to land readjustment associations Urban area redevelopment Cemetery and park development 1,018 1,018 - Fund 117, ,073 - Pre-acquisition of land 13,659 13,659 - Public bond 552, , Total 1,102,228 1,097,269 4,960 Main market, Hokubu market, Nambu market and slaughterhouse operation Lending to private land readjustment associations Execution of urban area redevelopment Execution of cemetery and park development Management of 13 funds such as the education fund Execution of pre-acquisition of land for public facilities Consolidated management of bondrelated borrowing and bond redemption *Individual amounts are rounded off, so the total may not agree with the sum of items shown. 10

13 11 Public Enterprise Account Settlement for FY 2012 The public enterprise account is a special account to which the Local Public Enterprise Act is applied. Account Revenue Expenditure Difference Description of Operation (Million yen) Hospital 26,368 27, Moriyama Municipal Hospital 5,737 6, Waterworks 46,913 46, Industrial use waterworks Sewage treatment 72,005 71, Bus transit 24,581 22,864 1,717 Subway transit 81,106 76,657 4,449 Management and maintenance of municipal hospitals Management of Moriyama Municipal Hospital (transferred to the private sector on April 1, 2013) Operation and maintenance of waterworks Operation and maintenance of industrial use waterworks Sewage treatment management and maintenance Operation and maintenance of bus transit system Operation and maintenance of subway transit system Total 257, ,418 6,082 *Individual amounts are rounded off, so the total may not agree with the sum of items shown.

14 Management Status of Public Enterprises for FY 2012 Balance sheet P/L Statement Assets Liabilities Equity Hospital Moriyama Municipal Hospital *Individual amounts are rounded off, so the total may not agree with the sum of items shown. Waterworks Industrial use waterworks Sewage treatment Bus transit Subway transit Total assets 56, ,497 20,208 1,059,705 19, ,255 Fixed assets 51, ,452 18,213 1,022,333 18, ,453 Current assets 4, ,045 1,995 35,636 1,311 7,801 Offset account , Total liabilities 16, , ,980 26, ,670 Noncurrent liabilities Current liabilities 13,732-31, ,824 21, ,210 3, , ,156 5,262 17,460 Total equity 39, ,963 20,003 1,038,726-6, ,585 Core capital 24,617 5, ,555 11, ,567 25, ,214 Borrowed capital 27,624-96,896 7, ,206 8, ,793 Surplus - 12,605-5,728 15,512 1, ,953-41, ,422 Total liabilities and equity 56, ,497 20,208 1,059,705 19, ,255 Revenue 26,368 5,737 46, ,005 24,581 81,106 Expenses 27,297 6,215 46, ,241 22,864 76,657 Net income ,717 4,449 Retained earnings carried over from previous fiscal year Unappropriated retained earnings (Million yen) - 14,750-5, , ,762-15,679-6,165 1, ,592-46, ,313 12

15 13 Plan for Rehabilitation of Municipal Transportation The law to promote sound financial operation of local governmental entities, which took effect April 2009, (Act 94 approved in 2007) states that local government-run enterprises which have a FY 2008 funding shortfall greater than the established standard for sound operation (20%), must have a plan for rehabilitation officially approved by government council vote. Since the funding shortfall for Nagoya s bus transit system exceeded the established standard, a plan for rehabilitation was formulated in efforts to improve operations. To be in effect for the 8 years from FY 2009 to FY Period of Plan Overview The plan seeks to enhance revenue via in-depth efforts to improve ridership, etc. while controlling expenses by drastically streamlining overhead costs such as payroll via effective cost structures achieved by comparisons with privately-run operations. At the same time, the plan seeks to stabilize the operating base by selling assets, etc. and achieve sound financial operations by systematically reducing shortfalls while undertaking investment from other accounts. Targets and Actual Results with respect to Balance of Payments Accounting for bus transit system (Unit: Billion yen) Category FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Current balance Target Actual Cumulative deficit Target Actual Amount of funding shortfall Target Actual Funding shortfall rate (%) Target Actual

16 14 New Municipal Hospital Reform Plan for Nagoya in March 2009, Nagoya formulated a municipal hospital reform plan based on the public hospital reform guidelines laid out by Japan s Ministry of Internal Affairs and Communications in December Nagoya s plan strives for a specialized municipal hospital system based on decentralization and enhancement of medical services by selecting from among and focusing on limited medical resources. With the expiration of the previous municipal hospital reform plan, a new plan was formulated in May 2011 to lay out future principles for municipal hospital reform. Period of Plan To be in effect for the 3 years from FY 2011 to FY Targets and Actual Results Category FY 2011 FY 2012 FY 2013 Plan Positioning The plan will strive to realize a roadmap for municipal hospitals following the expiration of Nagoya s municipal hospital reform plan aiming to enhance the speed of hospital reforms, effectively address medical needs and strive to achieve drastic management reforms. These will be achieved by undertaking selection and focus activities to realize stable and sustained municipal hospital management while effectively adapting to changes in the medical care environment. Events of Particular Note for FY 2012 Nagoya City West Medical Center launched proton radiation therapy for cancer Nagoya City East Medical Center launched reconstruction of an emergency/outpatient wing East Medical Center Moriyama Municipal Hospital undertook preparations to become a privately run hospital (in April 2013) Midori Municipal Hospital implemented a public-private partnership (April 2012) Average daily number of admitted patients Average daily number of outpatient patients Hospitalized care base price (yen) Outpatient care base price (yen) Available bed occupancy rate (%) Current account balance (%) Target Actual Target 2,707 2,188 1,880 Actual 2,166 1,947 Target 46,747 50,161 52,939 Actual 46,897 51,014 Target 8,383 10,105 10,700 Actual 9,124 10,549 Target Actual Target Actual *Figures were based on four hospitals for FY 2011, three hospitals for FY 2012 (Midori Municipal Hospital was excluded) and two hospitals for FY 2013 (East Medical Center Moriyama Municipal Hospital was excluded).

17 Management Status of Extra-governmental Organizations for FY 2012 (1) (Million yen) Statement of investment Balance sheet P/L statement Nagoya City Land Development Corporation Nagoya City Housing Supply Corporation Nagoya Expressway Public Corporation Investment ,012 Nagoya s share of the investment ,506 (investment ratio) 100% 100% 50% Number of investors Assets Liabilities Total assets 62,664 30,724 1,670,348 Fixed assets 24 23,824 1,658,672 Current assets 62,639 6,900 10,587 Deferred account - - 1,089 Total liabilities 61,281 26,389 1,355,336 Noncurrent liabilities Current liabilities 46,383 15,692 1,260,516 14,898 10,697 94,821 Net worth 1,383 4, ,012 Total liabilities and net worth 62,664 30,724 1,670,348 Revenue 5,440 12,175 62,163 Expenditure 5,440 12,085 62,163 Net income (after tax) *Organizations selected are those in which 50% or more of financing has been provided by the City of Nagoya. Individual amounts are rounded off, so the total may not agree with the sum of items shown. 15

18 Management Status of Extra-governmental Organizations for FY 2012 (2) Statement of investment Balance sheet P/L statement 15 Extra-governmental Organizations Nagoya Urban Development Public Corporation Three Main Organizations Nagoya Rinkai Rapid Transit Corporation Nagoya Transportation Development Organization Co. Ltd. Investment 8,314 1, Nagoya s share of the investment 5,778 1, (investment ratio) 100% 76.9% 100% Number of investors Assets Liabilitie s Total assets 80,488 18,014 4,866 11,434 Fixed assets 62,932 13,420 3,491 7,443 Current assets Deferred account Total liabilities Noncurrent liabilities Current liabilities 17,483 4,594 1,375 3, ,720 10,102 2,002 9,012 47,747 8,382 1,251 4,637 11,972 1, ,374 Net worth 20,768 7,912 2,864 2,423 Total liabilities and net worth (Million yen) 80,488 18,014 4,866 11,434 Revenue 39,858 4,613 2,292 6,604 Expenditure 39,020 4,471 2,126 6,465 Net income (after tax) *Organizations selected are those in which 50% or more of financing has been provided by the City of Nagoya. Individual amounts are rounded off, so the total may not agree with the sum of items shown. Net income in the P/L statement is a change in general net worth in the net worth matrix for incorporated foundations. 16

19 Relation to Nagoya City Land Development Corporation Purpose Nagoya City Land Development Corporation carries out land-related acquisition, management and disposal, etc. based on Japan's Act for Promotion of Expansion of Public Land. With regard to Nagoya City Land Development Corporation, Nagoya City provides support in the form of loan guarantees for private borrowing, as well as fundrelated loans and interest subsidies. Nagoya City Repurchases 8.91 bn yen Nagoya City Land Development Corp. Amortization bn yen Financial institutions Balance of advances 6.91 bn yen Interest subsidies Administrative expense contributions 0.75 bn yen Balance of land holdings bn yen Loans 8.70 bn yen Interest payments 0.72 bn yen Balance of advances bn yen Limit on loan guarantee funding 54 bn yen Repurchases 0.83 bn yen New acquisitions 0.25 bn yen Ministry of Land, Infrastructure and Transport Land owners Balance of land holdings and balance of advances are actual figures as of the end of FY All others are estimates based on Nagoya City Land Development Corporation budget figures for FY

20 Relation to Nagoya City Housing Supply Corporation Purpose Based on Japan s Local Housing Corporation Law and Public Housing Act, Nagoya City Housing Supply Corporation supplies units for sale or rent and is consigned by the City of Nagoya to manage municipal housing on the City s behalf. The City of Nagoya, on the other hand, provides support to the Corporation by guaranteeing loans related to financing and related private borrowing. Nagoya City Nagoya City Housing Supply Corporation Balance of advances bn yen Loans 2.50 bn yen Amortization 3.78 bn yen Assets for unit sale use 0.76 bn yen Assets for rental use bn yen Amortization 0.22 bn yen Interest payments 0.10 bn yen Financial institutions Balance of advances 4.36 bn yen Outsourced management of municipal housing bn yen Limit on loan guarantee funding 5.46 bn yen Management of municipal housing 63,320 units Amortization 0.02 bn yen Interest payments 0.01 bn yen Japan Housing Finance Agency Balance of advances 0.30 bn yen Balances of assets and balances of advances are actual figures as of the end of FY All others are estimates based on Nagoya City Land Development Corporation budget figures for FY

21 Relation to Nagoya Expressway Public Corporation Purpose Based on the Local Road Public Corporation Act, Nagoya Expressway Public Corporation constructs new roads as well as manages road renovation, maintenance, repair as well as all related activities. The City of Nagoya, on the other hand, provides support to the Corporation by providing debt guarantees as well as providing funds and loans. Nagoya City Nagoya Expressway Public Corporation Financial institutions Balance of advances bn yen Amortization bn yen Interest payments 1.80 bn yen Contributions bn yen Road-related assets tn yen Public & corporate debt bn yen Amortization bn yen Interest payments 8.75 bn yen Balance of advances 70.6 bn yen Balance of Public Debt 390 bn yen Balance of contributions bn yen Loans bn yen Limit on loan guarantee funding bn yen Loans 1.65 bn yen Amortization bn yen Ministry of Land, Infrastructure and Transport Balance of advances bn yen Burden shared equally by prefecture and municipality Fee-based revenue bn yen Expressway users Balances of assets and balances of advances are actual figures as of the end of FY All others are estimates based on Nagoya City Land Development Corporation budget figures for FY

22 20 Financial Statements for FY 2012 (1) Balance Sheet (General Account) (As of March 31, 2013) (Billion yen) Debit [Assets] Credit [Liabilities] Public property 3,570.7 Noncurrent liabilities 1,772.6 Tangible fixed assets 3,523.6 Municipal bonds 1,589.7 Available-for-sale assets 47.1 Long-term accrued liabilities 4.3 Investments Reserve for retirement benefits 124,1 Investments and capital investments Reserve for compensation for loss 54.5 Loans Current liabilities Funds 24.6 Current portion of municipal bonds Long-term bad loans 15.4 Short-term borrowing - Unrecoverable loans (estimate) -1.4 Accrued liabilities 0.3 Current assets Current portion of retirement benefits Cash and deposits Reserve for bonuses 8.3 Fiscal adjustment fund 14.6 Total liabilities 2,088.7 Sinking fund [Net worth] Annual cash 11.6 Accounts receivable 2.0 Subsidy from government and prefecture for development of public property, etc. General revenue for development of public property, etc ,391.3 Other general revenue, etc *1 *5 Assets created by subsidy to other bodies and private sector Sources of revenue allocated to the above subsidy 1Subsidy from government and prefecture, etc. 2Municipal bonds 3General revenue, etc. *2 Information on debt burden activities 1Purchase of property, etc billion yen 62.4 billion yen 1,35.1 billion yen 63.4 billion yen 2Guarantee of liabilities or compensation for loss 5,095.8 billion yen Of those, for jointly-issued bonds 3Other 4,699.7 billion yen 40.1 billion yen *3 Of outstanding municipal bonds (including the amount of the current portion of municipal bonds), billion yen is expected to be included in the basis for calculation of local tax grants at the redemption. *4 Information on future burden of general account Future burden of general account Future burden reduction assets including funds (Net) Actual debt in the future 64.5 billion yen 2,664.6 billion yen 1,791.6 billion yen billion yen Of tangible fixed assets, land amounts to 2,550.0 billion yen. In addition, accumulated depreciation and amortization of tangible fixed assets amount to 1,661.8 billion yen. The financial statements indicate the status of asset, worth and funding sources as of fiscal year end. Valuation difference on assets -2.3 Total net worth 2,506.9 Total assets 4,595.6 Total liabilities and net worth 4,595.6 *Prepared using the revised model of the Ministry of Internal Affairs and Communications (MIC).

23 Financial Statements for FY 2012 (2) Statement of Administrative Costs (General Account) (From April 1, 2012 to March 31, 2013) Ordinary administrative costs Category Total (Billion yen) Composition ratio Cost per citizen (%) (1,000 yen) Personnel Personnel expenses Provision for reserve for retirement benefits Provision for reserve for bonuses Property Property costs Maintenance and repair costs Depreciation expenses Transfer payment Social security benefits Subsidy Payment to other accounts Subsidy for development of public property, etc. to other entities Other Interest expenses Unrecoverable loans (estimate) Other administrative costs Total ordinary administrative costs a *Cost per citizen is based on the population registered in the basic resident register as of the end of FY 2012 (2,247,645). Ordinary revenue Category Total (Billion yen) Usage fee and service change b 43.4 Contribution, burden charge, donation c 7.7 Total ordinary revenue d = ( b + c ) 51.1 d / a 6.4% (Difference) Net ordinary administrative costs a - d Net Worth Matrix (General Account) (From April 1, 2012 to March 31, 2013) Beginning balance of net worth 2,495.7 Net ordinary administrative costs General revenue Municipal tax Local tax grants 8.4 Other revenue used to cover administrative costs *Prepared using the revised model of the Ministry of Internal Affairs and Communications (MIC) 86.2 Receipt of subsidy Temporary income and loss 5.1 Disaster recovery operation cost -0.1 Gain/loss from disposal/sale of public property Loss on investment 0.1 Provision of reserve for compensation for loss (Billion yen) Change due to asset reevaluation Other - Ending balance of net worth 2,506.9 The statement of administrative costs is to be used for understanding, from a cost perspective, activities providing administrative services that do not lead to asset building, such as personnel services and benefits providing services. Net worth matrix indicates changes in the net worth section of the balance sheet from the beginning to the end of a year

24 Financial Statements for FY 2012 (3) Statement of Cash Flow (General Account) (From April 1, 2012 to March 31, 2013) 1. Cash flow from ordinary activities Personnel expenses Property costs 78.6 Social security benefits Subsidy 31.8 Interest expenses 29.8 Payment provided for administrative fees of other accounts Other expenditure 22.1 Total expenditure Municipal tax Local tax grants 8.4 Subsidy from government and prefecture Usage fees and service charges 34.3 Contributions, burden charges, donations 7.5 Miscellaneous revenue 27.9 Issuance of municipal bonds 49.2 Reversal of fund 0.6 Other revenue 62.5 Total revenue Cash flow from ordinary activities Cash flow for development of public property Payment for developing public property 54.5 Payment of subsidy for developing public property 17.4 Payment provided for construction costs of other accounts 2.6 Total expenditure 74.5 Subsidy from government and prefecture 17.6 Issuance of municipal bonds 34.0 Reversal of fund 1.4 Other revenue 1.8 Total revenue 54.8 Cash flow for development of public property The statement of cash flow clarifies annual cash flow, which activities require funding, and how they are financed. (Billion yen) 3. Cash flow from investing and financing activities Investments and capital investments 1.3 Loans 86.7 Provisions for fund 8.2 Payment provided to fixed-amount funds - Payment required for debt expenditure of other accounts 39.0 Redemption of municipal bonds Payment of long-term accrued liabilities - Total expenditure Subsidy from government and prefecture 0.4 Loans recovered 95.7 Reversal of fund - Issuance of municipal bonds 2.3 Revenue from sale of public property 7.5 Other revenue 6.2 Total revenue Cash flow from investing and financing activities Changes in cash 7.5 Cash, at beginning of year 4.2 Cash, at end of year 11.7 *Prepared using the revised model of the Ministry of Internal Affairs and Communications (MIC). *1 Temporary borrowing 1Changes in temporary borrowing are not included in the statement of cash flow. 2Limitation on temporary borrowing for the current fiscal year is 160 billion yen. 3Of interest expenses, interest on temporary borrowing is 13 million yen. *2 Information on primary balance Gross revenue (excluding surplus carried forward) 1,010.2 billion yen Surplus carried forward billion yen Issuance of municipal bonds billion yen Reversal of public finance adjustment reserve funds billion yen Gross expenditure -1,001.9 billion yen Redemption of municipal bonds billion yen Provisions for public finance adjustment reserve funds 3.4 billion yen Primary balance 72.1 billion yen 22

25 23 Financial Statements for FY 2012 (4) Balance Sheet (All Accounts) (As of March 31, 2013) (Billion yen) Debit Credit [Assets] [Liabilities] Public property 5,844.9 Noncurrent liabilities 3,058.4 Tangible fixed assets 5,713.3 Municipal bonds 2,788.5 Intangible fixed assets 84.5 Municipal bonds of general account 1,589.7 Available-for-sale assets 47.1 Municipal bonds of public enterprises 1,198.8 Investments Long-term accrued liabilities 4.3 Investments and capital investments Reserve Loans (Reserve for retirement benefits) Funds 32.2 (Other reserve) 57.1 Long-term bad loans 17.0 Other 37.2 Unrecoverable loans (estimate) -3.1 Current liabilities Current assets Current portion of municipal bonds Cash Short-term borrowing 2.0 Accounts receivable 26.8 Accrued liabilities 41.0 Other 45.9 Current portion of retirement benefits 19.7 Unrecoverable loans (estimate) -1.1 Reserve for bonuses 12.1 Deferred account 1.7 Other 12.3 Total liabilities 3,526.1 [Net worth] Total net worth 3,131.0 Total assets 6,657.1 Total liabilities and net worth 6,657.1 *Prepared using the revised model of the Ministry of Internal Affairs and Communications (MIS). *1 Information on debt burden activities 1Purchase of property, etc billion yen 2 Guarantee of liabilities or compensation for loss Of those, for jointly-issued bonds 3Other *2 Of outstanding municipal bonds of general account and municipal bonds of public enterprises (including the amount of the current portion of municipal bonds), billion yen is expected to be included in the basis for calculation of local tax grants at the redemption. 5,099.5 billion yen 4,699.7 billion yen 40.1 billion yen *3 Of tangible fixed assets, land amounts to 2,664.5 billion. In addition, accumulated depreciation and amortization of tangible fixed assets amount to 3,251.7 billion yen.

26 24 Consolidated Financial Statements for FY 2011 Consolidated financial statements are also prepared including the settlements of concerned bodies into those of Nagoya The scope of consolidation is as follows: Consolidation All accounts Partial affairs associations (3) Wide area local public body (1) General account + Special account + Public enterprise account + Public university corporation (1) Local public corporations (3) Quasi-public corporations (26) Corporations which are recognized in which Nagoya holds a leading position in administrative operation given actual conditions such as dispatch of directors and financial assistance, including corporations majority-owned by Nagoya and municipal entities concerned

27 25 Balance Sheet (Consolidated) (As of March 31, 2012) (Billion yen) Debit [Assets] Credit [Liabilities] Public property 7,865.7 Noncurrent liabilities 4,033.6 Tangible fixed assets 7,736.1 Municipal bonds 2,894.2 Intangible fixed assets 88.7 Long-term debt from concerned bodies Available-for-sale assets 40.9 Long-term accrued liabilities 26.4 Investments Reserve Investments and capital investments 30.0 (Reserve for retirement benefits) Loans 52.6 (Other reserve) 29.3 Funds 68.0 Other 88.5 Long-term bad loans 22.7 Current liabilities Other 3.2 Current portion of municipal bonds Unrecoverable loans (estimate) 4.7 Short-term borrowing 7.4 Current assets Accrued liabilities 52.6 Cash Current portion of retirement benefits 22.1 Accounts receivable 45.6 Reserve for bonuses 13.3 Property for sale 40.8 Other 29.0 Other 45.7 Total liabilities 4,616.5 Unrecoverable loans (estimate) 1.6 [Net worth] Deferred accounts 2.6 Total net worth 3,847.7 Total assets 8,464.2 Total liabilities and net worth 8, *Prepared using the revised model of the Ministry of Internal Affairs and Communications (MIC). *1 Information on debt burden activities 1Purchase of property, etc billion yen 2Guarantee of liabilities or loss compensation Of those, for jointly-issued bonds 3Other *2 Of outstanding municipal bonds of general account and municipal bonds of public enterprises (including the amount of the current portion of municipal bonds), billion yen is expected to be included in the basis for calculation of local tax grants at the redemption. 5,192.3 billion yen 4,765.8 billion yen 61.6 billion yen *3 Of tangible fixed assets, land amounts to 2,804.5 billion. In addition, accumulated depreciation and amortization of tangible fixed assets amount to 3,315.3 billion yen.

28 26 Fiscal Data Fiscal year Population 2,193,376 2,202,111 2,215,062 2,223,148 2,236,561 2,247,752 2,257,888 2,263,894 2,266,517 2,266,851 Nominal gross municipal product 12, , , , , , , , Municipal tax revenue Fiscal independence ratio (%) Fiscal capability index Actual debt expenditure ratio(%) Future burden ratio (%) Current outstanding municipal bonds (general account) Current outstanding municipal bonds (all accounts) Amount of municipal bonds issued (general account / new issue) Amount of municipal bonds (all accounts / new issue) Amount of municipal bonds (total amount including refunding bonds) Ratio of current income to current expenditure (%) 1, , , , , , , , , , , , , , , , , , , , Unit: Billion yen (except for fiscal capability index) Population is as of October 1 of each fiscal year See Page 12 for the municipal tax revenue, and Page 18 for current outstanding municipal bonds