Turning crisis into opportunity!

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EROPA CONFERENCE, October 18, 2013 Stories to Share Turning crisis into opportunity! Kamon Iizumi, Governor of Tokushima Prefecture

Contents I Overview of Tokushima Prefecture II Promoting Hikari Broadband Okoku Tokushima III Developing a System to Deal with a Major Nankai Trough Earthquake

I Overview of Tokushima Prefecture 1 Location Kinki Area 4,147 km 2 (approx. 6 x Singapore) Shikoku Population: approx. 800,000 Gross production: 2.8 trillion Tokushima Prefecture Kansai International Airport 2:45 hours from Kansai International Airport by express bus 2 Tourism and traditional culture 4 major attractions Beethoven s 9th Awa Puppet Theater Awa Indigo Dye Awa Dance Location of first performance in Asia of Beethoven s 9th Traditional puppet shows with recitation & shamisen Beautiful color, also known as Japan blue Typical Japanese cultural dance

II Promoting Hikari Broadband Okoku Tokushima Digitalization of terrestrial TV broadcasting July 2011 Signals from other regions became unavailable! Channels reduced from 10 to 3 CATV producing four treasures 1 Digital terrestrial broadcasting 2 Broadband 3 IP phones Signals also available High speed, high Free phone calls capacity (10x faster from other prefectures than Tokyo) within region What s more Population trend (1960 2010) -7.3% (Nationwide +35.8%) Development in population decline and population aging Population aged 65 or more (in 2010) 27% (nationwide 23%) Turned crisis into opportunity! CATV network in whole prefecture completed! 4 Local information transmission 88.9% penetration rate of CATV in households, highest in Japan (as of end of March 2013; national average = 51.8%) Shares local information including disaster information, etc. Rate of marginal villages (in 2010) 35.5% (nationwide 15.5%) Hilly and mountainous regions Sharp increase in empty homes & unused facilities! Utilize the best fiber-optic network in Japan to attract businesses and regenerate villages in hilly and mountainous regions!

Prescriptions for problem solving Accumulating ICT related industry Attracting call centers, data centers, etc. In 2003 Zero sites Development of new operation test Satellite office project Businesses in region: 10 companies, 13 offices created over 1,000 jobs July 2013~ Operation test of small-scale call center Call center Data center Attracts people to depopulated areas Proposal of new working style Telework Fully unfurled for Tokyo-based ICT companies from 2012 Help from prefecture Facility rental, earthquake proofing work, etc. 18 related companies moved into 4 municipalities in prefecture! Companies Risk dispersion (using momentum of Tohoku earthquake) Employees rise in work efficiency due to comfort effect Local area New business development, local jobs (34 people) Kamiyama - First population migration surplus since 1970 Engawa Office Plat-Ease Co., Ltd. Remodeling old folk houses and storehouses Enable ways of working that transcend time and place Achieve work-life balance

III Developing a System to Deal with a Major Nankai Trough Earthquake Simulation of major Nankai trough earthquake (assumed damage) Extensive damage expected 60-70% probability of a magnitude 8 or more major Nankai trough earthquake occurring within 30 years Assumed damage in Tokushima Maximum Buildings destroyed: 116,400 Deaths: 31,300 Lifeline damage: Over 90% (water/sewage, electricity, gas) approx. 40% of all buildings in prefecture approx. 4% of population of prefecture Lessons of Tohoku earthquake Unparalleled disaster Disruption to key roads Ensure redundancy! Collapsed buildings due to quake/tsunami Make homes more quakeproof! Isolated communities Set up systems of self-help and mutual help! Power disruption, gasoline shortage Secure new energies! Need perspective of not only disaster prevention but also disaster mitigation! Turned crisis into opportunity! Aim for zero deaths, speed up disaster prevention & mitigation measures!

Prescriptions for problem solving 1 Promote upgrade of road network Ordinary times Emergency Disaster Ensure alternate road Giant tidal wave Road of Life Land breakwater Emergency escape route Road of life Speed up upgrade of road network! 3 Promote self-help, mutual help (1) Implement first BCP in Japan Expected road disruptions Encourage BCP development in companies, etc. Set up BCP support center, conduct map training Develop agricultural BCP Tsunami/salt damage measures, soil salt-removal testing, etc. (2) Create a volunteer disaster prevention organization Takes on big role of mutual help hub and damage mitigation *Organization rate 44% (2003) 90% (2012) First time to be developed by prefectural government Nationwide 77% 2 Further promotion of quakeproofing of homes (1) Establish tax system (national) for promoting quakeproof upgrades Proposed by Tokushima Established in 2006 4. Introduce natural energy Introduce mega-solar power (18 operators, 21 locations) Output: For about Ordinary times Power selling 16,200 homes Disaster Emergency power 2013 Operation test utilizing PHV and EV Charging utilizing mega-solar power Port facilities, evacuation shelters Used for lighting, radios, etc. in evacuation shelters Policy proposal 10% of renovation cost deducted from income taxes Enables power supply to evacuation shelters, etc. Fixed asset tax reduced by certain amount (2) Quakeproof wooden homes Eco-reform with simple construction Barrier-free (eliminate differences in levels) Energy conservation (solar power, etc.) Pref. aid 1/2 Municipal collaboration aid ( 100,000~500,000)

From leading problem prefecture to leading-edge problem-solving prefecture! Wisdom lies in the local communities! Turning crisis into opportunity! Honshu-Shikoku Expressway Nationwide Flat-rate Toll Introduction action strategy logo Thank you for your attention!