Business Climate in Sapporo. Economic & Tourism Affairs Bureau, City of Sapporo

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1 Business Climate in Sapporo Economic & Tourism Affairs Bureau, City of Sapporo

Overview of Sapporo Population 1,958,538

26 km 2 Nearly twice the size of Tokyo s

2 Overview of Sapporo Population 1,958,538 Japan s fifth largest city by population City where the first winter Olympics in Asia were held Area 12, km 2 Nearly twice the size of Tokyo s 23 wards Approximately 1.5 times the size of Singapore 1

3 Hokkaido s economic hub Center of people, goods and information in Hokkaido Population ratio 36.5% 1.95 mil/5.35 mil Sapporo/Hokkaido GDP comparison 35.5% 59,000 mil US$/166,100 mil US$ Sapporo/Hokkaido Reference) Singapore Malaysia 307,872 mil US$ 326,933 mil US$ 2

4 Sapporo has been attracting the world s attention as a growing international business city. Ongoing redevelopment Susukino Enhanced traffic network Odori Sapporo Ekimade-dori JR Sapporo Station Hokkaido Shinkansen The city is developing toward its bid for the Olympic Games in

Sapporo s corporate appeal IT and digital content companies Sales and number of employees in the IT industry Growing IT industry in Sapporo Sales (100 million yen) 4,200 Sales Number of employees

5 Sapporo s corporate appeal IT and digital content companies Sales and number of employees in the IT industry Growing IT industry in Sapporo Sales (100 million yen) 4,200 Sales Number of employees 4,100 4,000 3,900 3,800 3,700 Number of employees 20,400 20,200 20,000 19,800 19,600 19,400 3, ,200 One of Japan s foremost IT Industrial clusters Proactive promotion of the digital content industry Rich human resources with advanced technological skills 4

Sapporo s corporate appeal Call centers and BPO centers Number of companies that have advanced into Sapporo and the number employees Number of companies 80 Number of employees Number of companies 60

6 Sapporo s corporate appeal Call centers and BPO centers Number of companies that have advanced into Sapporo and the number employees Number of companies 80 Number of employees Number of companies 60 Number of employees 40,000 30, , ,000 Japan s largest call center hub High-quality service facilitated by excellent human resources Reasonable business costs Low risk for natural disasters

7 Agenda I II Strengths of Sapporo Call centers and BPO centers III IT and digital content companies IV Property information: city center of Sapporo V Safe, secured and comfortable life 6

8 Strengths of Sapporo High availability of excellent human resources Population of the Greater Sapporo Area Approx. 2.5 million Approx. 45% of the total population of Hokkaido Numerous higher education institutions Graduate schools Hokkaido 36 Universities 44 Junior colleges 16 Technical colleges (Reference) percentage of advancement to universities and junior college in Japan: 54.6% 4 Half of them are located in the Greater Sapporo Area. Universities of science and technology in the Greater Sapporo Area Hokkaido University Hokkai-Gakuen University Hokkaido University of Science Tokai University Chitose Institute of Science and Technology 7

9 Strengths of Sapporo Business costs Reasonable business costs Office rent Office rent per month (U.S. dollars/m 2 ) Labor cost Wage per month/non-manufacturing industry (U.S. dollars) Sapporo 24 Sapporo 2,011 3,785 Tokyo 63 Tokyo 2,383 4,688 Singapore 76 Singapore 2,247 4,164 Kuala Lumpur 17 Kuala Lumpur 770 1,589 Beijing 102 Beijing 969 2,204 Shanghai 51 Shanghai 971 2,084 Hong Kong Seoul Hong Kong Seoul 2,138 4,132 2,214 3, ,000 2,000 3,000 4,000 5,000 General staff Manager (section chief class) 8

10 Strengths of Sapporo Low disaster risk Low risk for natural disasters including earthquakes and typhoons A safe business environment enables further growth. Earthquakes Probability of a major earthquake in the next 30 years Typhoons Average annual number of typhoons approaching Hokkaido SAPPORO 0.9 SAPPORO 1.8 TOKYO 81.1 TOKYO 3.1 NAGOYA 65.2 NAGOYA 3.3 OSAKA 52.6 OSAKA 3.2 FUKUOKA 8.3 FUKUOKA 3.2 OKINAWA 40.3 OKINAWA

Call centers and BPO centers Advancement of call centers and BPO

Sapporo and the number employees Number of companies Number of

total) 40,000 30,000 40 20,000 20 10,000 0 2009 2010 2011 2012 2013

11 Call centers and BPO centers Advancement of call centers and BPO centers into Sapporo Number of companies that have advanced into Sapporo and the number employees Number of companies Number of employees Number of employees Number of companies (accumulated total) 40,000 30, , , Number of companies 71 Number of new jobs 30,000 plus Japan s largest call center hub 10

Call centers and BPO centers Human resources in Sapporo POINT 1 Easy to employ Number of jobs per 100 job seekers as office workers Job seekers 100 Sapporo Tokyo Osaka 36 36 47 There are not

12 Call centers and BPO centers Human resources in Sapporo POINT 1 Easy to employ Number of jobs per 100 job seekers as office workers Job seekers 100 Sapporo Tokyo Osaka There are not enough jobs for the number of job seekers. POINT 2 Large population of women in their 20s and 30s POINT 3 Warm hospitality Hard workers Evaluation by companies that have advanced into Sapporo 11

Call centers and BPO centers Support systems Subsidy for promoting call centers and back offices Subsidy of up to 30 million yen (10 million 3 years) for labor costs in accordance with the number of

13 Call centers and BPO centers Support systems Subsidy for promoting call centers and back offices Subsidy of up to 30 million yen (10 million 3 years) for labor costs in accordance with the number of new employees Intangible support Securement of human resources Participation in joint job fairs Introduction to educational institutes and staffing agencies Human resource development Skill improvement training of employees at call centers 12

IT and digital content companies Advancement of IT and digital content companies Number of companies that have advanced into Sapporo Number of companies 50 40 30 Number of companies (accumulated

14 IT and digital content companies Advancement of IT and digital content companies Number of companies that have advanced into Sapporo Number of companies Number of companies (accumulated total) A rapidly growing number of companies have advanced into Sapporo due to staffing shortages in the Tokyo Area Reference) Number of IT companies in Sapporo: 984 Number of employees: 21,363 Aflac Sapporo System Development Office Established in April 2016 Aflac, a U.S.-based life insurance company, has relocated part of its system development section in Japan from Tokyo to Sapporo. 13

15 IT and digital content companies Human resources in Sapporo POINT 1 Easy to employ Number of jobs per 100 job seekers as IT engineers Job seekers Sapporo Tokyo Osaka 100 Twice as easy to employ as 227 in Tokyo POINT 2 High academic level Program for International Student Assessment (PISA) 2015 by OECD Average marks in scientific literacy 1st Singapore 556 2nd Japan 538 Average 493 Participating countries/regions: 72 OECD members: 35 Non-OECD members: 37 14

16 IT and digital content companies Support systems Subsidy for promoting IT/content/bio-related companies Subsidy of up to 12 million yen (6 million 2 years) for labor costs in accordance with the number of new employees and employees who have been transferred to Sapporo Subsidy of up to 8 million yen (first year only) for establishment costs, including costs for construction, equipment purchase and recruitment. Intangible support Securement of human resources Participation in joint job fairs Introduction to educational institutes and staffing agencies Others Matching with local companies and support for business expansion 15

Property information: city center of Sapporo High-spec Standard Sapporo Sosei 1.

3 m 2 ) Common service charge: included in rent Air-conditioning fee: actual expense Others: BCP-supporting office building Sapporo Tokeidai Building Kita 1-jo Nishi 2-chome 1, Chuo-ku, Sapporo

3 m 2 ) Common service charge: 4,100 yen/tsubo Air-conditioning fee: included in common service charge JR Tower Office Plaza Sapporo Kita 5-jo Nishi 2-chome 5, Chuo-ku, Sapporo Completion of

17 Property information: city center of Sapporo High-spec Standard Sapporo Sosei 1.1.1(redevelopment building) Kita 1-jo Nishi 1-chome 6, Chuo-ku, Sapporo Completion of construction: scheduled for March 2018 Deposit: 12 months rent Rent: 20,000 yen/tsubo (approx. 3.3 m 2 ) Common service charge: included in rent Air-conditioning fee: actual expense Others: BCP-supporting office building Sapporo Tokeidai Building Kita 1-jo Nishi 2-chome 1, Chuo-ku, Sapporo Completion of construction: August 1982 Deposit: 12 months rent Rent: 12,000 yen/tsubo (approx. 3.3 m 2 ) Common service charge: 4,100 yen/tsubo Air-conditioning fee: included in common service charge JR Tower Office Plaza Sapporo Kita 5-jo Nishi 2-chome 5, Chuo-ku, Sapporo Completion of construction: February 2013 Deposit: 12 months rent Rent: 20,000 yen/tsubo (approx. 3.3 m 2 ) Common service charge: included in rent Air-conditioning fee: actual expense Others: BCP-supporting office building Directly connected to JR Sapporo Station Maruito Sapporo Building Kita 2-jo Nishi 1-chome 1, Chuo-ku, Sapporo Completion of construction: August 2000 Deposit: 12 months rent Rent: 12,000 yen/tsubo (approx. 3.3 m 2 ) Common service charge: 3,000 yen/tsubo Air-conditioning fee: 800 yen/tsubo 16

Safe, secured and comfortable life Workplace near home Comfortable even in

life. Developed underground malls and subway Residents can commute to work

Integration of nature and urban functions Residents can enjoy outdoor

18 Safe, secured and comfortable life Workplace near home Comfortable even in winter Sapporo Tokyo National average Commuting time/day 34.8 min. 1 hr. 32 min. 1 hr. 10 min. 24-hour snow removal system Snow rarely causes difficulties in day-to-day life. Developed underground malls and subway Residents can commute to work and enjoy shopping without concern about snow and the cold. Integration of nature and urban functions Residents can enjoy outdoor activities including golf, skiing and camping while living in an environment with excellent urban functions for shopping, childcare and medical care. 17

Families can live in Sapporo without any worries about schooling.

19 Safe, secured and comfortable life Education Hokkaido International School (Sapporo) From preschool to high school courses are offered through the educational medium of English. Families can live in Sapporo without any worries about schooling. Medical care Hospitals where patients can receive medical treatment in foreign languages There are many hospitals where patients can receive medical treatment in foreign languages, not only on weekdays, but also at night and on holidays. 18

20 We are looking forward to serving you in Sapporo, Hokkaido. 19

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