Henry Armour President & CEO NACS

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1 Monday March 20, 2017 Sapporo Japan Henry Armour President & CEO NACS Copyright NACS

2 Mr. Tomoyasu Marutani President Secoma Company, Ltd. Introductions Copyright NACS

3 Mr. Katsuhiro Akimoto Mayor City of Sapporo NACS 6 Katsuhiro AKIMOTO Mayor of Sapporo Copyright NACS

4 Content for today s presentation 7 2 History of City of Sapporo 3 Sapporo the Winter Sports City 4 Food and Tourism Content for today s presentation 8 2 History of City of Sapporo 3 Sapporo the Winter Sports City 4 Food and Tourism Copyright NACS

5 (1) Hokkaido, Japan 4 Area Hokkaido Island: 77,984k m2 Highest Altitude 2,291m Location of Hokkaido Government lat N long E (2) Hokkaido Area Hokkaido 83,424.31k m2 5 Population Hokkaido 5,381,733 人 34 th G8 Summit Meeting was held from July 7 to July 9, 2008 World Natural Heritage: Shiretoko Area: 71,100ha Registered year: 2005 Copyright NACS

6 (3) Economy of Hokkaido Economic size (GDP) Types of Industry (GDP) Economic size of

1% 160 日本 Japan 24.3% 74.7% 140 120 100 4.

Reference: Prefectural Economic Accounting (FY 2013) (4) Economy of Hokkaido -Food Base

6 6 (3) Economy of Hokkaido Economic size (GDP) Types of Industry (GDP) Economic size of Hokkaido is almost the same size of New Zealand (1 billion USD) (10 億ドル ) % 160 日本 Japan 24.3% 74.7% % 第 Primary 1 次産業 industry 第 Secondary 2 次産業 industry 第 Tertiary 3 次産業 Industry 80 北海道 Hokkaido 16.6% 79.5% % 10% 20% 30% 40% 100% 50% 0 NZ 北海道 Hokkaido ハンガリー Hungary 札幌市ルクセンブルグ Reference: Prefectural Economic Accounting (FY 2013) (4) Economy of Hokkaido -Food Base 1-7 Agricultural crops - Wheat: 500,000 tons, 67% domestic share - Potato: 1.75 million tons, 77% domestic share - Onion: 570,000 tons, 55% domestic share - Azuki bean: 60,000 tons, 90% domestic share Copyright NACS

Cream: 101,000 tons, 90% domestic share -

175,000 tons, 90% domestic share - Scallop:

Salmon/trout: 124,000 tons, 82% domestic

7 (4) Economy of Hokkaido -Food Base 2-8 Daily & animal industries - Raw milk: 3.89 million tons 53% domestic share - Butter: 57,000 tons, 86% domestic share - Cream: 101,000 tons, 90% domestic share - Natural cheese: 20,000 tons, 91% domestic share - Beef: 89,000 tons, 18% domestic share (4) Economy of Hokkaido -Food Base 3-9 Fishery product - Mackerel: 28,000 tons, 99% domestic share - Alaskan Pollack: 175,000 tons, 90% domestic share - Scallop: 469,000 tons, 86% domestic share - Salmon/trout: 124,000 tons, 82% domestic share - Pacific Saury: 106,000 tons, 47% domestic share Copyright NACS

8 (5) Economy of Sapporo 1 10 Economic size (GDP) Economic size of Sapporo is almost the same size of Luxembourg 200 (10 (1 billion 億ドル ) USD) Area Hokkaido 83,424.31k m2 /Sapporo 1,121.26k m2 Population Hokkaido 5,381,733 / Sapporo 1,952, 356 people Area population 60 1% 36% NZ Hokkaido 北海道 Hungary ハンガリー札幌市 Sapporo ルクセンブルグ Luxembourg Reference: Prefectural Economic Accounting (FY 2013) (5) Economy of Sapporo 2 11 Industry types (GDP) Component ratio by industry types 1.1% 7000 Household / private sector non-profit service producers Utilities Service, and wholesale/retail trade account for approx. 50 % Japan 日本 24.3% 74.7% 6000 Finance and Insurance Transportation 4.0% 5000 Services 北海道 Hokkaido 16.6% 79.5% 4000 information and communications 0.1% 3000 Tertiary Industry 出典 : 地域ブランド調査 2006~2015 札幌市 Sapporo 10.5% 89.4% Government service producers % 10% 20% 30% 40% 100% 50% 第 Primary 1 次産業 industry 第 Secondary 2 次産業 industry Secondary Industry Real Estate Wholesale and retail trade Tertiary Industry 第 3 次産業 Reference: Prefectural Economic Accounting (FY 2013, nominal) Copyright NACS

(6) Sister Cities of Sapporo Novosibirsk since

1980 Daejeon since 2010 Portland since 1959 (7)

and the amount of precipitation (2015) ( ) ( mm

amount of rain fall Amount of snowfall compared

Petersburg Montreal Vienna Toronto Munich

temperature and the lowest temperature is more

precipitation caused by snow is high Sapporo is

9 (6) Sister Cities of Sapporo Novosibirsk since Sapporo Munich since 1972 Shenyang since 1980 Daejeon since 2010 Portland since 1959 (7) Climate in Sapporo 1 Monthly average temperature and the amount of precipitation (2015) ( ) ( mm ) average temperature amount of precipitation amount of rain fall Amount of snowfall compared with cities around the glove Sapporo 13 St. Petersburg Montreal Vienna Toronto Munich Chicago Shenyang Population (million person) Yearly average temperature is 10.0 (15.4 in Tokyo ) The difference btw the highest temperature and the lowest temperature is more than 20 Four distinct seasons Amount of precipitation caused by snow is high Sapporo is one of cities with heavy snow with comparing to cities around the world Copyright NACS

(7) Climate in Sapporo 2 14 For maintaining a livable city in winter 1 (thousand people) ( km ) 2,500 6,000 Extension of snow removal 2,000 5,000 4,000 1,500 3,000

2015 0 (7) Climate in Sapporo 3 15 For maintaining a livable city in winter 2 Dec. 1971: Began operations as the forth subway system in Japan.

0km) Characteristics Adapted the world s first central-guide system using rubber tires and introduced computerized control system as well.

10 (7) Climate in Sapporo 2 14 For maintaining a livable city in winter 1 (thousand people) ( km ) 2,500 6,000 Extension of snow removal 2,000 5,000 4,000 1,500 3,000 population 1,000 2,000 In the middle of snow removal 500 1,000 0 S S40 S S50 S S60 H H7 H H17 H H (7) Climate in Sapporo 3 15 For maintaining a livable city in winter 2 Dec. 1971: Began operations as the forth subway system in Japan. Lines extended sequentially until Feb (total length 48.0km) Characteristics Adapted the world s first central-guide system using rubber tires and introduced computerized control system as well. Subway Essential for transportation in Sapporo without being unaffected by the climate March, 2011: Began operations It connects between Sapporo Station area and Odori/Susukino area at the underground level Underground walkaway Makes it possible to walk the downtown area safely and comfortably throughout the year Copyright NACS

11 (8) Four seasons in Sapporo 1 16 (8) Four seasons in Sapporo 2 Spring 17 Summer Sapporo Lilac Festival YOSAKOI Soran Festival Hokkai Bon Dancing Festival Beer Garden PMF Copyright NACS

12 (8) Four seasons in Sapporo 3 Autumn 18 Winter Sapporo Autumn Fest Sapporo Snow Festival German Christmas Market in Sapporo Content for today s presentation 24 2 History of City of Sapporo 3 Sapporo the Winter Sports City 4 Food and Tourism Copyright NACS

2 History of the City of Sapporo 20 (1) Era of Ainu Culture 1 - Ainu, the indigenous people of Japan, lived the area throughout Hokkaido

thirteenth century to the current era - Their mother tongue is Ainu - At the early nineteenth century, approx.

Sapporo In Ainu: sar-poro-pet with grass land /vast/river (various interpretations) Asahikawa In Ainu: cup-pet East river (named as

Niseko In Ainu: nisey-ko-an -nupuri valley/at/there is/river/mountain Touya In Ainu:to-ya lake/shore Tomakomai In Ainu:to-mak-oma-i

Culture Clothing( attushi ) Custom-fit clothing made from strings taken from tree bark of Manchurian Elm and linden Food In the search

seashore to access foods and water easily and to avoid any disasters as well Religion They believe that all animals and plants.

Library Throughout the year, they lived by hunting, fishing, and gathering in mountains and fields, seas, and rivers Early spring:

salmon in rivers and offshores and gathering wild plants Winter: hunting eels and small animals, such as sable Especially skins of Ezo

13 2 History of the City of Sapporo 20 (1) Era of Ainu Culture 1 - Ainu, the indigenous people of Japan, lived the area throughout Hokkaido Island, Karafuto and Chishima Peninsulas, and the southern part of Kamchatka Peninsula - Developed the its unique Ainu Culture from the thirteenth century to the current era - Their mother tongue is Ainu - At the early nineteenth century, approx. 15,000 people lived within Hokkaido(15,275 people in 1872) Ainu people Reference: Wikipedia Ainu language seen in names of places Sapporo In Ainu: sar-poro-pet with grass land /vast/river (various interpretations) Asahikawa In Ainu: cup-pet East river (named as Asahikawa from the meaning that the sun rise) (various interpretations) Shiretoko In Ainu: sir-etok of land/a protrusion part=cape Niseko In Ainu: nisey-ko-an -nupuri valley/at/there is/river/mountain Touya In Ainu:to-ya lake/shore Tomakomai In Ainu:to-mak-oma-i (there is a) swamp/makokai River (river/in the/mountains) 2 History of the City of Sapporo 26 (1) Era of Ainu Culture 2 Outline of Ainu Culture Clothing( attushi ) Custom-fit clothing made from strings taken from tree bark of Manchurian Elm and linden Food In the search for food found in nature, they spent most of days of the year for gathering foods Dwelling They built villages ( cotan ) near rivers and seashore to access foods and water easily and to avoid any disasters as well Religion They believe that all animals and plants., commodities, natural phenomenon, and plagues have their own spirits Livelihood Reference: Wikipedia Reference: Hakodate Central Library Throughout the year, they lived by hunting, fishing, and gathering in mountains and fields, seas, and rivers Early spring: Hunting Ezo Shika deer and brown bears, gathering wild plants in mountains and fields Summer: Fishing trout in rivers Autumn: Fishing salmon in rivers and offshores and gathering wild plants Winter: hunting eels and small animals, such as sable Especially skins of Ezo Shika deer, brown bears, seals, and salmon were used for clothing, shoes, and bags Reference: Wikipedia Reference: Hakodate Central Library (above) Hakodate City Museum (bottom/right) Copyright NACS

2 History of City of Sapporo (2) Frontier Era of Sapporo 1 1869 Hokkaido Development Commission was established

poem as I want to make Sapporo the best city among other five prefectures in Japan.

14 2 History of City of Sapporo (2) Frontier Era of Sapporo Hokkaido Development Commission was established First Chief magistrate Yoshitake Shima developed the Vision on the Capitalization of Sapporo while writing a poem as I want to make Sapporo the best city among other five prefectures in Japan History of City of Sapporo (2) Frontier Era of Sapporo Sapporo Agricultural College (the precursor of Hokkaido University) opened Dr. Clark, educator in USA, took up the position as first President Nation s first public-owned beer brewery completed in the same year Many public-owned factories, such as the beer factory, were developed 23 Copyright NACS

2 History of City of Sapporo (3) Current era

held 29 Snow sculpture, titled as Bear, in

high school students making a snow sculpture

Final Fantasy in snow in the current Sapporo

Olympic Games held 1,128 athletes (911 male

Avenue in 1970 Current Ekimae-dori Avenue

15 2 History of City of Sapporo (3) Current era of Sapporo First Sapporo Snow Festival held 29 Snow sculpture, titled as Bear, in the first Sapporo Snow Festival Middle and high school students making a snow sculpture First Sapporo Snow Festival site at Odori Park (1950) Snow sculpture, titled as Greatest fight! Final Fantasy in snow in the current Sapporo Snow Festival 2 History of City of Sapporo (3) Current era of Sapporo Winter Olympic Games held 1,128 athletes (911 male and 217 female) and 527 officials from 35 countries and regions participated Ekimae-dori Avenue in Ekimae-dori Avenue in 1970 Current Ekimae-dori Avenue Winter Olympic Games held (1972) Copyright NACS

Content for today s presentation 31 2 History of

Food and Tourism 3 Sapporo the Winter Sports City

City-owned Curling Stadium 1 Ski Resorts: 5 Ski

16 Content for today s presentation 31 2 History of City of Sapporo 3 Sapporo the Winter Sports City 4 Food and Tourism 3 Sapporo the Winter Sports City (1)Sports Facilities City-owned Skating Rink: 4 27 City-owned Curling Stadium 1 Ski Resorts: 5 Ski Jump Stadium: 5 jumping hills at 4 sites Copyright NACS

3 Sapporo the Winter Sports City (2)Sapporo Asian Winter Games 28 Period: February 19 (Sun.) 26 (Sun.

and regions About 2,000 athletes and board members 5sports/11 disciplines/69 events S k i J u m p i n g C r

p e e d S k a t i n g F i g u r e S k a t i n g S k a t i n g S h o r t T r a c k S p e e d S k a t i n g I

17 3 Sapporo the Winter Sports City (2)Sapporo Asian Winter Games 28 Period: February 19 (Sun.) 26 (Sun.), 2017 Expected Participating Regions: Expected Number of Participants : Sports : S k i i n g 32 countries and regions About 2,000 athletes and board members 5sports/11 disciplines/69 events S k i J u m p i n g C r o s s - c o u n t r y S k i i n g A l p i n e S k i i n g F r e e s t y l e S k i i n g S n o w b o a r d S p e e d S k a t i n g F i g u r e S k a t i n g S k a t i n g S h o r t T r a c k S p e e d S k a t i n g I c e H o c k e y C u r i n g B i a t h l o n 3 Sapporo the Winter Sports City (3)IPC Nordic Skiing World Cup 29 Period: March 18 (Sat.)- 22 (Wed), 2017 Sports type: Cross-country Skiing, Biathlon Venue: Nishioka Biathlon Stadium Participating countries: Number of Participants athletes and officials Copyright NACS

3 Sapporo the Winter Sports City (4) Bid Promotion of Winter Olympic and Paralympic Games Basic Concept 30

through the Games which is friendly to people, the Earth, and the future Sapporo Olympic Museum Exhibiting

the legacy as host city of the Olympic Games down to the next generation Content for today s presentation

18 3 Sapporo the Winter Sports City (4) Bid Promotion of Winter Olympic and Paralympic Games Basic Concept 30 Proposing the Sustainable Olympic and Paralympic Games model which embodies Sapporo Creating a new legacy through the Games which is friendly to people, the Earth, and the future Sapporo Olympic Museum Exhibiting the contents accessible for the history and concepts of the Olympic and Paralympic Games in order to pass the legacy as host city of the Olympic Games down to the next generation Content for today s presentation 31 2 History of City of Sapporo 3 Sapporo the Winter Sports City 4 Food and Tourism Copyright NACS

4 Food and Tourism (1) Food in Hokkaido and Sapporo 1 Signature Food in

skills of chefs, sushi in Hokkaido is well known as one of the best in Japan -

Hokkaido 4 Food and Tourism (1) Food in Hokkaido and Sapporo 2 33 Signature

and vegetables on a pan which is convex in the middle - There are two types of

raw/frozen meat eaten with sauce after cooking - Fresh milk, butter, and cheese

19 4 Food and Tourism (1) Food in Hokkaido and Sapporo 1 Signature Food in Hokkaido and Sapporo 32 Sushi Crab - By freshness of ingredients and artisan skills of chefs, sushi in Hokkaido is well known as one of the best in Japan - Hokkaido is famous for delicious crab - Huge volumes of crabs are caught in Hokkaido 4 Food and Tourism (1) Food in Hokkaido and Sapporo 2 33 Signature Food in Hokkaido and Sapporo "Genghis Khan mutton BBQ Sweets - Eating mutton and vegetables on a pan which is convex in the middle - There are two types of styles of meat: One is flavored raw meat and the other is non-flavored raw/frozen meat eaten with sauce after cooking - Fresh milk, butter, and cheese are produced in Hokkaido - Sweets in Hokkaido are made from these fresh ingredients Copyright NACS

20 4 Food and Tourism (2) Tourism in Hokkaido Food and Tourism (2) Tourism in Hokkaido 2 35 Copyright NACS

21 4 Food and Tourism (2) Tourism in Hokkaido Food and Tourism (2) Tourism in Hokkaido 4 37 Copyright NACS

4 Food and Tourism (2) Tourism in Hokkaido 5 38 4 Food and

Sapporo 39 Clock Tower(Tokeidai) Hitsujigaoka Observation

College - Sapporo Agricultural College is the precursor of

ceremonies such as entrance/commencement ceremonies for

Clark - Scenic site to observe a flock of sheep grazing on

ram cote established as research facilities as a observation

22 4 Food and Tourism (2) Tourism in Hokkaido Food and Tourism (3) Tourism in Sapporo 1 Major sightseeing spots in Sapporo 39 Clock Tower(Tokeidai) Hitsujigaoka Observation Hill - Served as a former drill hall of Sapporo Agricultural College - Sapporo Agricultural College is the precursor of Hokkaido University and this hall was established to conduct ceremonies such as entrance/commencement ceremonies for students of the College by the proposal of Dr. Clark - Scenic site to observe a flock of sheep grazing on the grass in the urban city of Sapporo - Operating a part of ram cote established as research facilities as a observation from 1959 while renovating it according to the changes in the times Copyright NACS

4 Food and Tourism (3) Tourism in Sapporo 2

Park Hokkaido Shrine - Hokkaido Shrine has been

development of Hokkaido from the frontier era

located just out side of the northeastern part

Isamu Noguchi - One of representative facilities

visitors annually 4 Food and Tourism (3) Tourism

Sapporo s Official Smart Phone App Sapporo Info

23 4 Food and Tourism (3) Tourism in Sapporo 2 Major sightseeing spots in Sapporo 40 Moerenuma Park Hokkaido Shrine - Hokkaido Shrine has been standing watch since the transition and development of Hokkaido from the frontier era and has many visitors on New Year s day - located just out side of the northeastern part of the city and designed by architect, the late Isamu Noguchi - One of representative facilities of Sapporo and having eight hundred thousands visitors annually 4 Food and Tourism (3) Tourism in Sapporo 4 41 Carry Sapporo around with you! Sapporo s Official Smart Phone App Sapporo Info (FREE) Copyright NACS

24 42 Thank you very much for listening! Mr. Katsuhiro Akimoto Mayor City of Sapporo Copyright NACS

25 Henry Armour President & CEO NACS Global Issue Life Cycles: Where Are We in Asia? Copyright NACS

26 Global Issues Life Cycles The Case for Global Engagement Global Issues Life Cycles The Case for Global Engagement Copyright NACS

27 Global Issues Life Cycles The Future in Asia! On the Leading Edge Supply chain (logistics & vertical integration) Foodservice (generally, better-for-you, safety) Payment systems Services as an income stream On the Trailing Edge Regulations Vehicles Fuel and Convenience integration Global Issues Life Cycles The Summit Agenda The Asian Arena The economics and politics The consumer Supply chain focus (Sapporo) Gamification Methods of payment O2O (Online to Offline) Vehicles of the future The global wave of regulations The commissaries, the distribution system & the stores Copyright NACS

28 Global Issues Life Cycles The Japanese Landscape Global Issues Life Cycles The Japanese Landscape Copyright NACS

29 Global Issues Life Cycles Supply Chain Logistics Global Issues Life Cycles Vertical Integration Supply Chain Copyright NACS

30 Global Issues Life Cycles Foodservice Global Issues Life Cycles Better For You Foodservice Copyright NACS

31 Global Issues Life Cycles Food Safety Global Issues Life Cycles Payment Systems Copyright NACS

32 Global Issues Life Cycles Services as an Income Stream Global Issues Life Cycles China Copyright NACS

33 Global Issues Life Cycles Hong Kong Global Issues Life Cycles South Korea Copyright NACS

34 Global Issues Life Cycles Tobacco Regulations Global Issues Life Cycles Sugar Regulations Copyright NACS

35 Global Issues Life Cycles NACS Convenience Summit - Asia Henry Armour President & CEO NACS Copyright NACS

36 Welcome Reception Keio Plaza - Rose Copyright NACS

SAPPORO 2017 Facts and Figures

SAPPORO 2017 Facts and Figures 1. Land & Climate (2016) Latitude & Longitude North 43 11 22 N.lat. South 42 46 51 N.lat. East 141 30 20 E.long. West 140 59 26 E.long. Total area (as of Oct. 1, 2016) 1,121.26