March 2011 The Chugoku Region Investment Promotion Conference

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1 JAPAN CHUGOKU REGION 0 March 0 The Chugoku Region Investment Promotion Conference c/o Industrial Promotion Division, Industries Department Chugoku Bureau of Economy, Trade and Industry -0, Kamihatchobori, Naka-ku, 0-8 Japan Tel: Fax: Web: http//:

2 Access The Chugoku Region borders Kyushu, Shikoku, and Kinki regions, making it a transportation hub for all of western Japan. The infrastructure includes advenced airports and seaports, with active movement of people and goods from this region to other parts of Japan and overseas. Of the 0 airports in the Chugoku region, airports- Yonago,, and -receive regular scheduled international flights. International charter flights are received at airports -, Yonago, Izumo, Hagi-Iwami,,, and Yamaguchi-Ube. Two airports, - and -have,000-meter runways, and are capable of accepting large cargo airplanes. Oki Izumo Yonago Hagi-Iwami Konan - Nishi Yamaguchi-Ube Major Cities (No.of daily flights) Flight Time to Major Cities (hours: minutes) Major Cities (No.of daily flights) (hours: minutes) Tokyo() :0 Narita() :0 Tokyo() : Tokyo() Yonago : Seoul(/week) :0 Sapporo() : Tokyo() :0 Sendai() :0 Osaka(Itami)() 0:0 Okinawa() Izumo : Oki() 0:0 Seoul(/week) :0 Fukuoka() :0 Shanghai(/week) :0 Oki Osaka(Itami)() :00 Dalian(8/week) : Izumo() 0: Beijing(/week) : Hagi-Iwami Tokyo() :0 Taipei(/week) :0 Tokyo() :0 Guam(/week) :0 Okinawa() :0 Yamaguchi-Ube Tokyo(8) Guam(/week) :0 : Seoul(/week) Shanghai(/week) : :00 Beijing(/week) Dalian(/week) :0 :0 Current as of Feb. 0 Commuter flights Regular scheduled international route Note:.From the end of March, 0, the - Shanghai route will be extended to Chengdu, and the -Dalian route ( flights) will be extended to Tianjin.. airports, Konan and -nishi, doesn't receive regular scheduled flights.

3 Access " Major Port" indicates a port that is designated by the government as being a central point of the international and domestic sea transport network, or as otherwise being strongly related to national interests. The Chugoku region includes such Major Ports. "Specially Designated Major Port" indicates a Major Port which is of particular importance as a central point in the international sea transport network. There are such ports in the Chugoku region - Mizushima Port in prefecture, Port in prefecture, Shimonoseki Port and Tokuyama Kudamatsu Port in Yamauchi prefecture. Sakaiminato Saigo Major Port Local Port Hamada Misumi Otake Kure Onomichi- Itozakii Mizushima Fukuyama Uno Onoda Iwakuni Tokuyama- Mitajiri Kudamatsu Shimonoseki Ube Regular International Container Lines Port Route (International Ports of call) Korea routes (Busan), (Busan, Ulsan, Gwanyang, Tianjin, Dalian) Sakaiminato Korea-Russia route (Donghae,VladiVostok) China routes (Qingdao, Dalian), (Shanghai) Hamada Korea route (Busan) Russia route (VladiVostok) Korea routes (Busan, Inchon), (Ulsan, Busan), (Busan) Mizushim a China routes (Tianjin, Dalian, Qingdao, Ningbo, Shanghai), (Dalian, Qingdao), (Shanghai), (Xiamen, Fuzhou) Viet Nam route (Keelung, Taichung, Mailiao, Danang, Ho Chi Minh, Kaohsiung) Fukuyama Korea routes (Busan),(Busan,Ulsan) China routes (Dalian, Qingdao), (Shanghai), (Tianjin, Dalian, Qingdao,Ningbo, Shanghai) Kure Korea route (Busan) Korea routes (Busan), (Ulsan, Busan), (Busan, Inchon) China routes (Shanghai), (Ningbo, Shanghai, Tianjin, Dalian), (Dalian, Qingdao) Taiwan-Manila route (Keelung, Manila, Kaosiung) Taiwan-SE Asia routes (Busan, Gwanyang, Keelung, Kaosiung, Hong Kong, Shekou, Xiamen), (Busan, Kaosiung, Hong Kong, Hai Phong, Zhanjiang, Yantian) North America route (America Longbeach / Everett, Canada Vancouver) Otake Korea route (Busan) Korea routes (Busan), (Busan, Inchon) Iwakuni China routes (Shanghai), (Shanghai, Qingdao) China-Taiwan route (Taipei, Taichung, Kaosiung, Nansha, Shekou, Hong Kong) Korea routes (Busan), (Busan, Masan) Tokuyama China route (Shanghai) Kudamatsu SE Asia route (Keelung, Kaosiung, Hong Kong, Laem Chabang, Taichung) Korea route (Busan) Mitajiri China routes (Dalian, Qingdao), (Shanghai) Nakanoseki SE Asia route (Keelung, Manila, Kaohsiung) Ube Korea route (Busan) Shimonoseki Korea routes (Busan, Masan), (Busan), (Gwanyang) China routes (Qingdao), (Suzhou) Current as of Feb. 0

4 Tax Incentives / Subsidies and Financing A full set of incentives are available for businesses which are established in the Chugoku region. These include a variety of benefits in terms of national, prefectural, and city / town / village taxes. Incentives for Each Region National taxation Regional Agro-industrial Regional Remote Under-populated Peninsular designations/categories district urban center island region Manuf. Manuf. Road cargo transport Lodges Applicable industry Warehousing - Manuf.,Others Manuf.,Others Business using Packaging industry ICT Wholesale Exemption for replacement of business assets Special depreciation for industrial machinery City / town / village taxes Business taxes Cluster zone Cluster industries specified in the "Basic Plan" Real estate acquisition tax Fixed asset tax Financing Japan Finance Corporation Note: Financing is listed only those areas that are associated with conditions specified Agro-industrial district (Act on the Promotion of Introduction of Industry into Agricultural Regions), Regional urban centers (Act on Comprehensive Development of Regional Core Cities with Relocation of Office-Work Function), Remote islands (Act on Remote Islands Development), Peninsular regions (Act on Peninsula Development), Underpopulated regions (Act on Special Measures for Promotion of Independence of Underpopulated Regions), Cluster zone (Act on Formation and Development of Regional Industrial Clusters through Promotion of Establishment of New Business Facilities, etc.) Tax Incentives (National taxation) Exemption for replacement of special business assets Special depreciation of industrial machinery Condition (for special depreciation) Agroindustrial buildings, and mechanical If assets including land, district equipment within a certain Under- region are sold, then a tax Populated exemption is recognized region through advanced depreciation for land, Peninsular region Remote island Cluster zone buildings, and mechanical equipment acquired during the same business year. (Special Taxation Measures Law Article -) - With the construction of a new factory in the regions where this applies, in addition to ordinary depreciation, special depreciation is recognized within the first year for acquisition of buildings, machines, and other industrialuse assets which meet the - ()Machinery and equipment 0/00 ()Building and related equipment /00 (Special Taxation Measure Law Article) specified conditions. ()Machinery and equipment /00 () Buildings and related equipment 8/00 (Special Taxation Measures Law Article -) Acquisition of industrial production equipment exceeding 0.00 million yen in value - ()Machinery and equipment Acquisition of unit exceeding 0.00 million yen and collectively exceeding 00 million yen in value (Agriculture, forestry and fisheries related industry: Acquisition of unit exceeding.00 million yen and collectively exceeding 0.00 million yen in value) () Buildings and related equipment Acquisition exceeding 00 million yen in value (Agriculture, forestry and fisheries related industry: Acquisition exceeding 0.00 million yen in value) Subsidies and Financing Assistance and Subsidies Government Financial Institutions - Regional Employment Promotion Assistance Fund (Ministry of - Japan Finance Corporation (Loans for Regional Revitalization and Health, Labor and Welfare) Employment Promotion) - Assistance Fund for Establishing New Businesses in Power - Japan Foundation for regional Vitalization(Hometown Loan Supply Regions(Center for Development of Power Supply Regions) (Regional Vitalization Loan)) - Overview of Subsidy Program for Projects Promoting Asian Site - Cabinet Office(Community Revitalization Assistance Interest Location in Japan(Ministry of Economy, Trade and Industry) Subsidies)

5 Major Industrial Complexes Major Port 8 Shimane Yamaguchi 8 0 Prefecture Prefecture Hotei Industrial Park Dejima District of Port Wakabadai-Kita Industrial Park Itsukaichi District of Port Chizu Techno Park Takehara Industrial and Distribution Park Yamanoue Industrial Park Mihara-Seibu Industrial Park (Sojo Area) Nishi-Kurayoshi Industrial Park Onomichi Distribution Park Higashisono Inaba Industrial Park Minooki Industrial Park Yonago Sakitsu District Core Shobara Industrial Park 8 Wadahama Industrial Park 8 Techno Town Higashi- Sakaiminato Takenouchi Industrial Complex Saiki Industrial Park 0 Sakaiminato-Nishi Industrial Park 0 Chiyoda Distribution Park Kishimoto Industrial Park Ujigami Industrial Park II Ohara Industrial Park Daiwa Industrial Park Daisen IC Industrial Park Kouchi By- Hayashinomine Industrial Park Kui Industrial Park Hayashinomine Industrial Park Shinichi Industrial Park Nakasuge Industrial Park Seifu-Shinto Koebi Industrial Park Naeshiro Industrial Park Ⅰ 8 Daisen Center Industrial Park 8 Naeshiro Industrial Park Ⅱ Taiheibara Industrial Park Aga marinoporis District 0 Yonago Distribution Center 0 Yasuura Industrial Park Shimane Prefecture Miyoshi Industrial Park Ⅲ Matsue Konan Technical park Matsuhama District of Onomichi-Itozaki Port Asahi Hills Industrial Park Yamaguchi Prefecture Shimane Research Business Park Chofu Ogi-machi Industrial Park Hamada Port Seaside Industrial Park Ube Airfront Intelligent Park Izumo Nagahama Core Industrial Park Ube Techno Park Iwami "Rinku" Factory Park Ube Techno Center Hane District Industrial Park Yamaguchi Techno Park 8 Gotsu Industrial Park Yamaguchi Techno II Izumo Eastern Industrial Park Yamaguchi Industrial Distribution Complex 0 Kawashimo Port Seaside Industrial Park 8 Suzenji Industrial Park Eshima Industrial Park Higashioki Factory Park Hikawa Central Industrial Park 0 Onoda, Kusunoki Industrial Park Saigo Port Seaside Industrial Park Hikari Soft Park Misumi Port Seaside Industrial Park Yonemitsu Industrial Park Prefecture Techno Port Shuto Research Park Toyohigashi Industrial Park Mizushima Port (Tamashima District Distribution Facilities Park) Nishinagato Industrial Park Tsuyama Industry Distribution Center Leading Plaza Jumonji Kasaoka Port (Harbor district) Mine Techno Park Niimi Industrial Park 8 Asou Industrial Park Kibi Plateau City Industry Ward Maniwa Industrial Park 8 Kume Industrial Park Shinshoou Chukaku Industrial Park 0 Higashiyama Industrial Park Mimasaka Sakuto Industrial Park Shikigaoka Industrial Park Higashiminari Industrial Park

6 Research Institutes 8 8 Major Port 0 Shimane Yamaguchi Business Incubation Facilities Major Port Shimane Yamaguchi 0 8 Prefecture Incubation Room, Electron Organic Materials Research Laboratory, Institute of Industrial Technology Incubation Room, Mechanical & Material Research Laboratory, Institute of Industrial Technology Food Research and Development Laboratory, Institute of Industrial Technology Shimane Prefecture Hikawa-offering Support Center Techno Arc Shimane Prefecture Business Incubator I-box Niimi Research Park Incubation Center Creative Center Kurashiki Venture Office Niteras Univ. Incubator Prefecture Techno Plaza Kure Support Core Kure Challenge Core Kure Jump Core Soho-kokutaiji club Hiroshin Incubation Center,"B-Square" Incubation Center, "Create Core" 8 Techno Frontier Higashihiroshima 0 Higashihiroshima Support Center for the Creation of New Industries Business Base Shamojin Cube Yamaguchi Prefecture Yamaguchi Software Center Yamaguchi Mechanics Electronics Technology Center Yamaguchi Airfront Incubation Office Shunan Citizens Exchange Center, Business Support Center IT Business Center Yamaguchi Ube Medical Creative Center Shimonoseki Incubation Support Facility, "Incubator Alpha"

7 The Chugoku region includes research and development businesses in the fields of electronics, biotechnology, and new materials, and is leading the world with its advanced technical power. Against this background of industrial concentration, more and more commercial research facilities, including national and other public experimental and research organizations, are being established in the region. Prefecture University Electronic Display Research Center Institute of Industrial Technology, Erectronic and Organic Marerial Research Lab. Mycological Institute(TMI) Institute of Industrial Technology, Mechanical and Material Research Lab. Bio-Frontier Hyo-on Institute Co.,Ltd. Institute of Industrial Technology, Food Research and Deveropment Lab. 8 Prefectural Institute of Public Health and Environmental Science Prefectural Agriculture and Forest Research Institute Shimane Prefecture Shimane Prefectural Institute of Public Health and Environmental Science Shimane Prefectural Construction Technology Center Shimane Institute for Industrial Technology Shimane Industrial Promotion Foundation Techno Arc Shimane Shimane Prefectural intellectual Property Center Shimane Information Industry Association Japan Institute of Invention and Innovation, Shimane Prefecture Branch 8 Office JETRO Matsue Trade Information Service Center 0 Shimane Institute for Industrial Technology, Hamada Branch Shimane Institute for Health Science Department of Livestock and Grassland Science, National Agricultural Research Center for Western Region Shimane Prefectural Institute for Promotion of Local Industry in the Sekio Area Shimane Prefecture Mountainous Region Research Center Prefecture Industrial Technology Center of Prefecture Prefectural Construction Technology Center Prefectural Institute for Environmental Science and Public Health University Collaborative Research Center Teleport System Engineering Japan Institute of Invention and Innovation, Prefecture Branch Office 8 JETRO Trade Information Service Center International Business Association 0 Techno-Support Prefecture Industrial Promotion Foundation Sanyo Technology Promotion Society Kurahashi Fashion Center Co., Ltd. Mizushima Salon Tsuyama New Industry Creation Organization Tamano Industrial Promotion Corporation Ikasa Industrial Promotion Center 8 Ceramics Center Ceramics Research Foundation 0 Research Institute for Forest and Forest Products Japan Atomic Energy Agency, Ningyo-Toge Environmental Engineering Center Forest Tree Breeding Center, Kansai Breeding Center Research Institute for Biological Sciences, Prefecture Prefectural Technology Research Institute, t Food Technology Research Center Prefectural Technology Research Institute, Health and Environment Center City Industrial Technology Center City Institute of Public Health Radiation Effects Research Foundation(RERF) Institute for Small Business Management and Technology Chugoku Industrial Innovation Center 8 Japanese Standards Association, Office City Industrial Promotion Center 0 City Industrial Information Service Japan Institute of Invention and Innovation, Prefectural Branch Office Chugoku General Support Center for Small and Medium Enterprise Ventures Intelligent Center Software Center Co., Ltd. JETRO Trade Information Center Industrial Culture Center Industrial Promotion Organization 8 Intellectual Property Center International Center Prefectural Technology Research Institute, Western Region 0 Industrial Research Center Kure Region Industrial Promotion Center National Agricultural Research Center for Western Region Prefectural Technology Reseach Institute, Eastern Region Industrial Research Center Bingo Area Center for the Promotion of Regional Industry Chugoku National Industrial Research Institute National Research Institute of Brewing Prefectural Technology Research Institute, Agricultural Technology Research Center Prefectural Technology Research Institute, Western Region 8 Industrial Research Center, Academy of Production Technology Prefectual Institute of Industrial Science and Technology 0 Techno-Frontier Higashi- Incubation Center, " Create Core" JICA Chugoku International Center Techno Plaza Corporation International Center Training Department National Research Institute of Fisheries and Environment of Inland Sea, Fisheries Research Agency Yamaguchi Prefecture JETRO Yamaguchi Trade Information Center Yamaguchi Prefectural Mechatronics Technology Center Yamaguchi Prefectural Industrial Technology Institute Yamaguchi Prefectural Mental Health Welfare Center Japan Ultra-high Temperature Materials Research Center Japan Institute for Advance Dentistry Yamaguchi Technology Licensing Organization Ltd. 8 Yamaguchi Prefectural Research Institute of Health Yamaguchi Industrial Promotion Foundation 0 Yamaguchi New Media Center Corporation Japan Institute of Invention and Innovation, Yamaguchi Prefecture Branch Office Shunan Regional Industries Promotion Center, Foundation Crafts Industry Promotion Center, Yamaguchi-Hofu Area Sanyo Onoda City Environmental Research Center Yamaguchi Software Center

8 JAPAN CHUGOKU REGION 0 For Inquiries ; Prefectural Government, Industrial Land Development Division -0 Higashi-machi, Tel: Fax: sangyoushinkou@pref.tottori.jp Web: Shimane Prefectural Government, Industrial Land Development Division Tono-machi, Matsue 0-80 Tel: Fax: kigyo-richi@pref.shimane.lg.jp Web: Prefectural Government, Industrial Location Promotion Division -- Uchisange, Tel: Fax: kiritsu@pref.okayama.lg.jp Web: Prefectural Government, International Business Office 0- Moto-machi, Naka-ku, 0-8 Tel: Fax: syokigyou@pref.hiroshima.lg.jp Web: ricchi.hiwave.or.jp/invest/index.lapsw p Yamaguchi Prefectural Government, Enterprise Induction Promotion Office - Taki-machi, Yamaguchi -80 Tel: Fax: a00@pref.yamaguchi.lg.jp Web: The City of, Business Promotion Department -- Daiku, Kita-ku, city, 00-8 Tel: Fax: kigyouricchi@city.okayama.jp Web: The City of, Business Placement Promotion Office -- Kokutaiji-machi, Naka-ku, 0-88 Tel: Fax: sangyo@city.hiroshima.jp Web: / t t / /008/i ht l Chugoku Bureau of Economy, Trade and Industry, Industrial Promotion Division, Industries Department -0 Kamihatchobori, Naka-ku, 0-8 Tel: Fax: qchgix@meti.go.jp Web:

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