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KPMG Japan Our Story 2019 / 20

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KPMG Japan
Our Story
2019/ 20
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individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that suchinformation is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act onsuch information without appropriate professional advice after a thorough examination of the particular situation.
© 2020 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law
and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative(“KPMGInternational”), a Swiss entity. All rights reserved.20-8003© 2020 KPMG Tax Corporation, a tax corporation incorporated under the Japanese CPTA Law and a member firm of the KPMG
network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.
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Index Map

O u r

P u r p o s e

Inspire Confidence,
We work to inspire confidence in the economy while empowering clients andsociety to make positive changes. This is Our Purpose.
We work shoulder-to-shoulder with our clients, delivering real results,
while we ourselves change for the better as we seek to be the Clear Choice.
This is The KPMG Story – building on the past and leading into the future.

© 2020 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the
KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

01© 2020 KPMG Tax Corporation, a tax corporation incorporated under the Japanese CPTA Law and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Empower Change.
Index Map

01 Our Purpose
03 Management Message
07 Value Creation Story
13 Our Vision and Strategy
15 KPMG Ignition Tokyo
25 Management Committee Members / Governance Structure
27 Service Line
31 Citizenship / Inclusion & Diversity
33 Three-year Performance / Overview of Member Firms

Online Report(Japanese only)© 2020 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the
KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
© 2020 KPMG Tax Corporation, a tax corporation incorporated under the Japanese CPTA Law and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

KPMG Japan Our Story 2019/20

02

Management Message

CEO’s Message

What we want you to know

We aim to be the Clear
Choice for our clients,society, and all otherstakeholders. We believe weWe are committed to building public trust
Our Vision at KPMG Japan is to be the Clear Choice. We strive
to be chosen, now and in the future, by our clients, our people
and society through our provision of outstanding services.
In order to be the Clear Choice, our priority at KPMG Japan is tobuild public trust as the basis for quality in all the services that we
provide. In order to achieve this, we believe it is essential for all ofour professionals to take pride in being a member of KPMG.

can achieve this if we are

There has been remarkable progress in technology in recent

consistently trusted by ourat an unprecedented rate. The expectations of society regarding

clients and society at large.

years, and in the future we will face changes in our environment
our core assurance and tax services as well as our advisory
services will also change drastically in line with environmental
changes that are to come. We will be quick to identify thechanging expectations of society and utilize technologies
required to maintain the quality expected of our services. We
believe supporting the growth of society and companies willlead to building public trust, and as a result, to realizing Our
Vision to be the Clear Choice.

Meeting the evolving expectations of society
We expect there to be a growing demand to share ourknowledge and experiences outside of existing service lines© 2020 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the
KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

03© 2020 KPMG Tax Corporation, a tax corporation incorporated under the Japanese CPTA Law and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

To be the Clear Choice –Now and in the Future
Hiroyuki TAKANAMI
CEO, KPMG Japan
CEO, KPMG AZSA LLC

Work Experience Hiroyuki managed the audits of major financial institutions before serving as Senior
Executive Board Member in charge of Financial Services and subsequently Senior Executive Board
Member in charge of Advisory. He concurrently served as the first President of KPMG Consulting Co.,
Ltd., established in 2014. He has been in his current role since July 2019.

in order to accurately address the changing expectations ofcomplexities of management they are facing, we will mobilize

society that accompany environmental changes surrounding

KPMG’s collective capabilities to strengthen our provision ofcompanies. We will proactively address disruptions throughcustomized services to each client.

further mobilizing our know-how, in particular from theviewpoints of strengthening our capability to respond to

3. Our focus on incubation

digital needs as well as our global capabilities, and our focus

Entrepreneurs are utilizing their promising technologies to create

on incubation.

new business models. In ten years time, they will likely bringabout changes leading to significant developments in society.

1. Strengthening our capability to respond to digital needs

We believe it is an important responsibility of KPMG Japan to

At KPMG Japan, we expanded our existing hub for advanced

support such entrepreneurs and contribute to futuretechnology development and incorporated KPMG Ignition Tokyo,

development of society.

Inc. (KIT) in July 2019. In addition to developing and building
common digital platforms for all Audit, Tax and Advisory

Striving to be the Clear Choiceservices, KIT will support the digital transformation of our clients.

Our people at KPMG Japan must individually gain the trust of

KIT has assembled a team of digital experts including datasociety. We value fostering trustworthy professionals with ascientists and security engineers from both within and outsidehigh sense of ethics and integrity, thereby nurturing our ties

of Japan. We have also launched a training program to ensurewith future generations. We further promote diversity within athat not only our digital experts but all of our people are skilled

positive workplace culture, and gain the trust of society throughin technology use and are capable of responding to the digitalincreasing the motivation of our people with varying expertiseneeds of our clients and society.

and values and encouraging them to achieve their fullest
potential. This is how we will strive to be the Clear Choice, now

2. Strengthening our global capabilities

and in the future.

In response to the growing number of clients with more
operations overseas than in Japan and the increasing© 2020 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the
KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
© 2020 KPMG Tax Corporation, a tax corporation incorporated under the Japanese CPTA Law and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

KPMG Japan Our Story 2019/20

04

Management Message

Chairman’s Message

Our Purpose in an Era of Uncertainty- The Clear Choice
In the era of VUCA*, we saw the
emergence of revolutionary
technology and innovation and a shift
from ownership to access, the effectof which is spreading beyond
businesses to individual lifestyles andeven social structure.
At a time when past models of successare becoming quickly outdated, we are
required more than ever to freeourselves from the past and continue to
evolve in looking ahead to the future.
KPMG Japan comprises eightprofessional firms that are supported by
8,600 people. KPMG’s global networkof independent firms offer Audit, Tax
and Advisory services in more than 150
countries with almost 210,000 peopleof different nationality, gender,

Toshiya MORI
Chairman, KPMG JapanWork Experience Toshiya served as Headof Advisory of KPMG Japan since 2015 andassumed his current role in October 2018. He
has extensive experience providing both audit
and advisory services to assist global
corporations with a wide range ofmanagement issues.

© 2020 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the
KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

05© 2020 KPMG Tax Corporation, a tax corporation incorporated under the Japanese CPTA Law and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

The Only Constant is Change
generation, background and expertise.

literacy. We are building a businessstandard of fairness, so that our firm

At KPMG, we have a culture of mutual

scheme with other KPMG Internationalcan grow into a team of professionals

acceptance and respect which serves

member firms that maximizes thecapable of earning the trust of clientsas our greatest strength and source ofassets and strengths of each firm andand society.

value creation. To be the Clear Choice isprovides value-added support, bothThis is the final year of KPMG Japan’s

an unchanging and consistent corporate

within and beyond Japan, to our clients

mid-term business plan. With thephilosophy for KPMG, and we strive towith global businesses seeking

Sustainable Development Goals (SDGs)

contribute to clients and to society

organizational reforms.

in mind, we will base our next plan on athrough our robust relationships andnetwork as a unified “One KPMG” firm.

To free ourselves of the past andcontinue to evolve into the future

To lead social and business
transformations and always be theClear Choice

more long-term approach looking ahead
to 30 years of KPMG Japan’sachievements, and consider the specificaction plans required.

Our business is based on a foundation

By fostering a culture andWith digital technology permeatingof trust, and rather than seeking short-environment where we can make theevery aspect of society and business,term profits or growth for growth’s

most of our strengths, andutilizing data and undergoing digitalsake, we are required to maintain acontributing to clients and society

transformation (DX) is crucial tofairness of mind while working closely

through our high-quality services andstaying competitive. We willwith clients. At times we need to takedeep expertise while further building

proactively invest in next-generation

an uncompromising stance. It is mytrust, we will strive to be the Clear

digital technology and innovation led

mission as Chairman to foster our talent

Choice, now and in the future.

by KPMG Ignition Tokyo, and foster

to have not only a high degree of

global-minded talent with high digital

expertise and insight, but also a high*Volatility, Uncertainty, Complexity, and Ambiguity

The KPMG Story

Our Purpose
Our Values
Our Vision
Our Strategy
Our Promise
Timeless (universal)

Timely (5-10 years)

Enduring guideposts and code of
conduct

What we aim to be and how we will get there in thisever-changing economic and social environment

Our Purpose

Our Vision

Our Values

Our Strategy
Our Promise© 2020 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the
KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
© 2020 KPMG Tax Corporation, a tax corporation incorporated under the Japanese CPTA Law and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

KPMG Japan Our Story 2019/20

06

Value Creation Story

Outcome
We contribute to building public trust and to enhancing
value by fulfilling the responsibilities entrusted to us.
Our contribution to society

Achieving a transparent, fair economy
Building trust as the foundation of society
Our value creation

Professionals who can make judgments based on insightful
thinking to solve complex issues
Ability to leverage diversity to consistently bring about
desired outcomes

Value Creation Story
Our ability to support clients in solving
challenging issues and the diverse expertiseof our people contribute to society by
assisting our clients to create value, enabling
KPMG to create our own value in turn.
The insights gained from this contribution
result in a stronger foundation for our

Input
We utilize our accumulated credibility,
expertise, and global network.

business which allows us to enhance our

Sources of our value

capabilities to solve ever more complex

Accumulated trust

issues. Through this process we can achievesustainable growth and fulfill the role
expected of us by our clients and society.

Professionals with integrity andexpertise who meet the expectationsof society
Global network to make the most of
our insight© 2020 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the
KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

07© 2020 KPMG Tax Corporation, a tax corporation incorporated under the Japanese CPTA Law and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

The Clear Choice

KPMG-

Quality

Ignition
KPMG-

Cube

We deliver ever-higher quality service for society and
KPMG-

Careerindividuals by utilizing the outputs we accomplishedthrough assisting clients to create value.

Value Creation
With the goal of assisting clients’ value
creation, we use all the resources at our
disposal to solve issues for clients.

Audit
Tax
Advisory

OutputWe realize outcomes by providing
high-quality services.

© 2020 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the
KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
© 2020 KPMG Tax Corporation, a tax corporation incorporated under the Japanese CPTA Law and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

KPMG Japan Our Story 2019/20

08

Value Creation Story

One KPMG

At a Glance

The Strengths that form the foundation for our Value Creation Story

Professionals who have diverse expertise and knowledge collaborate to solve
the challenges and disruption faced by clients and society. Utilizing ourglobal network, they demonstrate the collective strength of our firm in order
to meet expectations.

Input(As of June 30, 2019 unless otherwise stated)

No. of employees

No. of Certified Public
Accountants

No. of Certified
Public Tax Accountants *1

8,616

3,370

239

No. of global
professionals *2
Countries% of female
employees

31.6

%

33

% of employees with adisability *3

2.51

%

1,562

billion yen

Global Network

2,715

No. ofnationalities

Revenues

153

No. of female
partners

207,050

No. of employees% of non-Japanese

49

2.9

%

No. of employees taking
maternity or child care leave
Female158 15Male© 2020 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the
KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

09© 2020 KPMG Tax Corporation, a tax corporation incorporated under the Japanese CPTA Law and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Share of audit market
Share of top 100 listed companies bymarket cap

No.1

Share of top 100 listed companies byrevenue

No.1(Share: 34.0%)

Share of 215 Japanese companies
reporting under IFRS (or planning to)

No.1(Share: 39.0%)(Share: 30.2%)

No. of audit clients

Tax firm ranking *4

3,614

No.1

M&A advisory ranking

Share of 13 SEC registrants in
Japan

No.2

(Share: 30.8%)

Global People Survey 2018 results *5

Based on publicly
announced deals

Based on In-Out deals

No.4

No.1

January 1, 2018 – December 28, 2018 Source: Refinitiv(formerly Thomson Reuters Financial & Risk)

Quality & Risk

Inclusion & Diversity

Collaboration

74

67

69

(+2 from the previous
quarter)(+2 from the previous
quarter)(+5 from the previous
quarter)

OutputAudit
Tax
Advisory*1 Certified Public Tax Accountants both registered andnon-registered (including those who have passed theexamination and those who are exempted fromexamination) who are engaged in Tax services.
*2 Global professionals are those who have overseas work
experience, those who have completed global skills
training courses, and foreign nationals.
*3 Total percentage of persons with disabilities who areemployed by KPMG AZSA LLC, the parent company of a
special subsidiary, AZSA Office Mate Co., Ltd., and KPMG
Consulting Co., Ltd.
*4 Industry magazine International Tax Review named KPMG
Japan the “Japan Tax Disputes & Litigation Firm of theYear” for the Asia Tax Awards 2019
*5 Global People Survey (GPS) is an awareness survey
conducted on a regular basis for all people who work for
KPMG member firms worldwide, as part of the firm’s
ongoing improvement initiatives.

© 2020 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the
KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
© 2020 KPMG Tax Corporation, a tax corporation incorporated under the Japanese CPTA Law and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

KPMG Japan Our Story 2019/20

10

Value Creation Story

Sumitomo Corporation Global Audit TeamOur audit team comprises more than 200 professionals,
including accountants and experts in tax and otherrelevant fields from 14 countries, to ensure we provide
high added-value services to our client engaged in various
businesses worldwide. All audit teams in relevant countries
communicate frequently to make full use of the potential of
our global network, in addition to the expertise derived fromour team of experts outside of the audit field who provide
relevant insights to the audit team. This collective strength
is the bedrock of our high added-value services. We strive toact as a good business partner for our client as they face thechallenges of doing business on a global scale. This is ourdaily motivation.

One KPMG

PeopleThe diversity supporting our Value Creation Story is KPMG’s strengthToday’s KPMG Japan is the result of a series of mergers andreorganizations. Our firm’s history is one of accepting different culturesand valuing diversity, and it is this culture of mutual respect which has
been the cornerstone of KPMG Japan.
This year, we are introducing three teams.

© 2020 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the
KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

11© 2020 KPMG Tax Corporation, a tax corporation incorporated under the Japanese CPTA Law and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Client Service Teams for
Global Accounts
We have set up teams in major hubsaround the world, including Japan, theUS, Europe, China, Southeast Asia andIndia, in order to support the businessesof our clients globally. We assign
members with a deep understandingof each client’s business and local
challenges, and strive to increase client
satisfaction through providing highquality services. To this end we haveclose and frequent communication
with our overseas teams. We will build
trust as “One KPMG” and strive to bea true partner, making every effort to
tackle the management issues of clients
who continue to grow globally in orderto provide practical, client-oriented
solutions.

Audit
Tax
Advisory

Fintech Innovation
department
In December 2016, we established
the Fintech Promotion support office,acollaborative effort of 4 firms - KPMG
Consulting, KPMG Tax, KPMG FAS
and KPMG AZSA – to share the latest
information on technologies andregulatory developments and provide
advisory services. In recent years
however, the fintech initiatives offinancial institutions and companies
have surpassed the initial stage ofpromotion, and are in themselves
becoming core services. Against thisbackdrop, KPMG Japan has reorganized
the Fintech Promotion support officeas the Fintech Innovation department,
and we are further strengthening our
fintech initiatives.

© 2020 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the
KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
© 2020 KPMG Tax Corporation, a tax corporation incorporated under the Japanese CPTA Law and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

KPMG Japan Our Story 2019/20

12

Our Vision and Strategy

VisionThe Clear Choice
To be the Clear Choice – Now and in the Future.
We work shoulder-to-shoulder with our clients, delivering real results, while
we ourselves change for the better as we seek to be the Clear Choice.

Strategy for realizing Our Vision

Quality
Quality Strategy

Career
P17

Ensure steadfast quality

People Strategy

Promote professional growth

As an accounting firm, we constantly endeavor
to realize Quality for our clients by seeking an
increase in value for both society and for ourclients.

Cube
P19

KPMG Japan�s strength lies not just in our
specialized knowledge or use of advanced
technologies - we face the challenges ofbusiness and society with sincerity and purpose
while providing an environment where eachindividual can grow as a professional.

Organizational strategy

P 21

Demonstrate our collective strength
We merge cutting-edge technology with our
professional insights and methodologies
thereby demonstrating our collective strengthand delivering solutions to our clients�
challenges through the KPMG global network.

© 2020 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the
KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

13© 2020 KPMG Tax Corporation, a tax corporation incorporated under the Japanese CPTA Law and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

KPMG-

Quality
Ensure steadfast quality
Maintain a high standard of expertiseand provide valuable insight
Utilize advanced, innovativetechnology

Ignition
KPMG-

KPMG-

Cube

CareerDemonstrate our collective strength

Promote professional growth

Promote market-oriented culture

Develop professionals who
excel in the market

Deliver seamlessly integrated
solutions

Be confident and proud of ourpeople and our work

KPMG Ignition Tokyo connects KPMG
Japan’s three strategic pillars – Quality,
Career, and Cube – to drive the evolution
of KPMG Japan and allow us to further
support the transformation and innovation
agenda of our clients.
Introducing technologies to Audit, Tax and

Ignition

Advisory services, KPMG Ignition Tokyo
connects KPMG Japan seamlessly to the
KPMG global network in order to deliver
solutions to the complex, rapidly-changing
issues of our clients and society as “OneCreating value

P15
We are strengthening the digital aspect of ourQuality, Career and Cube strategic pillars toensure their successful execution here at
KPMG Japan.

KPMG.”© 2020 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the
KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
© 2020 KPMG Tax Corporation, a tax corporation incorporated under the Japanese CPTA Law and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

KPMG Japan Our Story 2019/20

14

KPMG Ignition Tokyo

KPMG IgnitionTokyo
Masayuki CHATANIKPMG Japan
CEO, KPMG Ignition Tokyo Inc.

Audit

Tax

Advisory

Application(specialized applications for each field)

Business Platform(traceability, knowledge sharing)Technology Platform(secure computing, blockchain)

Technology Foundation(cloud, AI, big data)

KPMG Ignition Tokyo Services

Merging KPMG Japan’s expertise gained through
Audit, Tax and Advisory services with the latest
technologies
In July 2019, KPMG Japan incorporated KPMG Ignition
Tokyo, our hub for digital transformation and innovation,
as KPMG Ignition Tokyo, Inc. (KIT).
KIT supports the digital transformation of our clients
through the “chemical reaction” that occurs between thebusiness professionals of our Audit, Tax and Advisory
service lines and the technology professionals of KIT.

Six Pillars of technology

Secure Computing

Knowledge Processing

Intelligent Agent

A generic term for technology that enables
KPMG to process information (such as Audit,
Tax, and Advisory information) under safe
conditions.
Includes blockchain, encrypted information
processing, and anti-quantum computer level
cryptographic processing.

Technology that extracts various typesof knowledge from non-structural data(contracts, in-house documents, e-mails) andfrom non-text data (images, videos). Analysis
of tacit knowledge is also included in the
future scope. Includes knowledge input/
output technology such as language, image,
video understanding, text summarization andtext generation.

Technology that enables interaction in amore human-centered state when peopleinteract with computers or when computersinteract with each other.
Includes AI chatbots, voice agents, andinteractive technologies including robotics inthe future.

© 2020 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the
KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

15© 2020 KPMG Tax Corporation, a tax corporation incorporated under the Japanese CPTA Law and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Accumulation of advanced technologies by diverse
experts
Masayuki Chatani was appointed as the CEO of KIT.

blockchain, as well as in the digital fields of data scienceand cloud architecture.

KPMG Ignition Tokyo Services

Having previously served as CTO of a gaming platform,

KIT aims to enhance the synergy between Audit, Tax

he brings with him extensive experience and insights inand Advisory by dividing the six pillars of technology

technology management of digital technologies gained in

into four layers – Application, Business Platform,

his career spanning over 30 years.

Technology Platform and Technology Foundation – andTo accumulate insights into cutting-edge technologies,

as a hub for KPMG Japan’s advanced technologies,

KIT has assembled a team of diverse digital experts inbuild an ecosystem that benefits all of our clients.

the latest technologies such as the cloud, AI and

Scientific Visualization

Smart Transaction

Edge Computing & IoT

Technology that provides more effective
visual, auditory, and tactile feedback whenpresenting analyzed information. Aims toexpress dynamic changes through real-time
interaction beyond 3D graphic expressions.
Technology that facilitates the absorption ofknowledge / analyzed knowledge throughinformation feedback, including the use of
AR and tactile devices.

Technology that is expected to contribute to
the core of KPMG’s business by analyzing
a wide range of transactions to find humanerrors, automate repetitive tasks, and detect
intentional and malicious processing.
Includes simple automation from RPA tomore advanced automation technology, error
detection and forensic technology.

For data that is being uploaded to edge
computing or IoT devices, this includes
technology to acquire various signals
including pre-processing. For data being
downloaded from the cloud, technology
for presenting information processed in
the cloud or on the edge.KPMG’s Signal
Repository is one of the technologies inthis area. In the 5G era, edge functions areincluded in infrastructure which could resultin new forms of computing.

© 2020 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the
KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
© 2020 KPMG Tax Corporation, a tax corporation incorporated under the Japanese CPTA Law and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

KPMG Japan Our Story 2019/20

16

KPMG-Quality

Quality
CareerCube

Message

Takuji KANAI
Ensuring
steadfast quality

Head of Audit

KPMG Japan is, at its core, an audit firm and a tax accounting firm. The audit
firm is committed to ensuring the credibility of financial statements, while thetax accounting firm’s mission is to help clients fulfill appropriate tax obligations.
As an accounting firm that bears this social responsibility, KPMG Japan strives
for ever higher quality in all of our services including advisory. In this way, we

KPMG-

Qualitycontribute to increasing value both for society and for our clients.
We have always made judgments based on criteria and ethics that are

Ignition
KPMG-

Cube

recognized by society as fair and reasonable, while maintaining a high degree of
KPMG-

Careerexpertise and integrity and complying with a strict set of rules. We have also
ensured the independence of our audit services and have maintained andenhanced the quality of all services that we provide.
In an era in which IT technology innovations have brought about various
changes, we are promoting initiatives to take advantage of the latest IT
technologies to improve quality in each of our Audit, Tax and Advisory functions,with KPMG Ignition Tokyo at the center. These initiatives, some of which require
advanced data analysis techniques, leverage IT and specialized expertise. We
believe our passion for and commitment to quality will contribute to the robust
future growth of clients and sustainable development of the economy.

© 2020 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the
KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

17© 2020 KPMG Tax Corporation, a tax corporation incorporated under the Japanese CPTA Law and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Audit Quality
Audit quality is the source of public trust at KPMG AZSAIn order to further improve audit quality, we also consider objective

At KPMG AZSA, we regard maintaining audit quality as ourviewpoints based on an exchange of opinions with participants inthe capital markets and through issuing our report AZSA Quality asa basis for engaging in dialogue on audit quality issues.

top priority. We relentlessly seek to enhance audit quality inorder to meet the expectations of society. Audit teams provide
high-quality audit services that are responsive to advances in
information systems, globalization and other challenges faced by
Japanese companies.
Inclusive corporate culture to encourage free, robust discussions
We routinely reassign our people to different positions and havereorganized our corporate structure so as to provide consistentquality of audit services and improve global responsiveness.
As a result, we have cultivated an open corporate culture thatwelcomes free discussion and encourages learning from one
another. Such values are shared by each and every one of us,
making for a well-integrated organization.
Public interest initiatives as an audit firm
Considering the public interest nature of our services, we haveestablished two committees – the Management OversightCommittee evaluates the effectiveness of management andaudit quality improvement initiatives at KPMG AZSA, and the
Public Interest Oversight Committee supervises the firm’s
management from the viewpoint of what is best for the public.

Four Defense Lines to help disseminate management policies
In order to provide audit quality that fulfills the expectationsof society and clients, we have defined Four Defense Lines,
namely: (1) firm management (KPMG AZSA CEO and Senior
Executive Board Members), (2) quality control departments,(3) audit divisions and (4) audit teams. This structure ensures
the operational effectiveness of the entire
firm by disseminating management policies
down to the audit teams and conveying andsharing information from each audit team withmanagement.

AZSA Quality

KPMG AZSA periodically issues a report
AZSA Quality to explain our management�sthoughts on enhancing audit quality andother initiatives so that our stakeholders,
including participants in the capital
markets, can better understand us, andwhat we can do for them.

Tax Quality
Tax issues are becoming more diverse in today’s increasingly
complex and international business environment. Addressing thevarious aspects of corporate management, which is undergoing
dramatic change in recent years, KPMG Tax Corporation’s teamsof tax specialists, each of which has a field of expertise, offer
high-quality services to clients.
To develop such specialists, KPMG Tax Corporation provides
training programs to further enhance tax-related technical skills

and to strengthen client focus and communication skills, basedon our determination to be the Clear Choice for clients.
In addition to tax consulting, KPMG Tax Corporation aims toprovide high-quality compliance services including preparationof tax returns. KPMG does not merely perform clerical work in
preparing tax returns. We engage in in-depth dialogues withclients to identify potential tax-related risks, and tax planning
options, with the ultimate aim of raising clients’ corporate value.

Advisory Quality
We prioritize building trusted relationships with our clients
through the consistent delivery of fair and high-quality services.
To achieve this, we have invested in advanced technologies,
developed experts, and established a system that allows us
to provide globally consistent services. This is the essence of
KPMG Japan’s reputation for quality.
Commitment to enhancing clients’ corporate value
KPMG Japan has established an operational approach that
ensures the delivery of high value-added services appropriate
to the client’s characteristics and the size and complexity ofthe service. We maintain a database of our people’s skills
and experience which we use to ensure our team consistsof professionals with the relevant expertise and experience.
For engagements of a certain scale, the appointment of aquality control review partner is required, and for complex andsophisticated services an engagement leader is assigned basedon the firm’s accreditation system, KPMG’s internal certification.
To be a trusted partner who works shoulder-to-shoulder
with clients and listens to feedback from the front line, ourprofessionals ask themselves: “Am I contributing to value
creation for my clients? What is necessary for the client to growcontinuously in the mid-to-long term?” By constantly asking
these questions, we ensure that our people are committed toproviding high-quality services.

© 2020 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the
KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
© 2020 KPMG Tax Corporation, a tax corporation incorporated under the Japanese CPTA Law and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

KPMG Japan Our Story 2019/20

18

KPMG-Career

Quality
CareerCube

Message

Hiroyuki YAMADA
Developing
professional talentHead of People, Performance and Culture

KPMG Japan’s vision is to be the Clear Choice. In other words, Our Vision is to be
the firm of choice by our stakeholders, now and in the future, through having eachand every one of our people provide outstanding services as true professionals.
In order to achieve this, our people need to accurately identify the changes ourclients are facing and come up with appropriate solutions on their own. We

KPMG-

Quality

focus on the “Three O’s” - On-the-Job Training (OJT), Off-JT and Opportunities– and evolve the “knowledge” of our professionals from simple information into

Ignition
KPMG-

Cube

“wisdom” that can be used to find solutions.
KPMG-

CareerRevolutionary innovations in technology have allowed the collection, analysis andadvanced use of data. We are in an era where insights gained from utilizing suchdata create new added-value. We have assembled diverse talent with the digital
literacy needed to address such innovations, and will continue to strengthen thelatest digital capabilities among our professionals, as well as pursuing strategic
investments in technology development. As the necessity of caregiving andchild rearing increases, and as value systems become increasingly diverse, wehave worked on enhancing various policies and efforts to respond to the needsof our people. We want to provide an environment that allows them to achieve
their fullest potential while maintaining good physical and mental health, while
fostering a culture of mutual respect for diversity.
As management, we are determined to implement various measures on asystematic and continuous basis to achieve Our Vision to be the Clear Choice.

© 2020 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the
KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

19© 2020 KPMG Tax Corporation, a tax corporation incorporated under the Japanese CPTA Law and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Audit Career
Human Resource Development Principles and the

Effective human resource development through the PDCA
cycle in OJTKPMG AZSA has established basic principles for the systematic
creation and maintenance of an environment that enables
personnel to acquire the expertise and skills necessary toprovide high-quality services, thereby fostering the developmentof true professionals. At KPMG AZSA, true professionals aredeveloped through the “Three O’s,” namely: OJT (on-the-job
training), Off-JT (off-the-job training; practical and pragmatictraining), and Opportunities (providing a wide range of work
opportunities).

We hold team management discussions to provide a regular
opportunity to think about the optimal approach to engagement
conduct. We have also developed a set of guidelines laying out
expectations for OJT, and continuously review our initiatives
for human resource development through the sharing of best

l fSe

SA
’

AZ

OJ
T

True Professionals
Professional Base

s
ciple
rin
T
f-J
Of

tP

KPMG

s

nd

n)
io

tu

th Mindset
Gr o w( Fo
unsda
Re ource Dev
n
elo
t
ma
p
u
m
H

a
dy

en

Fostering a growth mindset and effective engagement
conduct among audit teams through OJTThe pillars of the OJT basic policy are (1) engagement conductthat enables the active and appropriate communication withclients that is necessary to identify and solve issues, and (2)audit work paper review, discussion, and feedback for training
purposes. We believe that fostering a talent development
mindset in our people is essential to achieve these goals.

practices and byobtaining feedback
from the audit frontline. By going throughthis PDCA cycle as apart of OJT, we areable to foster talent
more effectively.

s“Three O’s”

Expertise
SkillsOppo r t unit y

Tax Career
Hiring and fostering top talent
At KPMG Tax Corporation, we are implementing initiatives toactively recruit top talent regardless of whether someone isalready a Certified Public Tax Accountant or not. Specifically,
we offer university internship programs for students to get areal sense of the advanced expertise and international nature of
KPMG’s tax-related work. Prospective employees also attend
multiple trainings before and after formally joining the firm andare well-supported to develop the expertise required as tax
professionals.

Providing opportunities to grow as a professional
We hold training on a regular basis that strengthens our technicaltax knowledge and language ability in order to be able to tackle
any tax challenges faced by our clients. In addition, we provide
the opportunity for each professional to attend KPMG Tax
Professional Camp where they discuss awareness and theirunderstanding of tax-related matters through various tangible
scenarios that allows us to further hone our technical expertise,client focus, and ability to work as a team.

Advisory Career
Offering training programs for each field of expertise andproviding career advancement opportunities
To accurately identify the increasingly complex challenges facedby our clients and provide optimal solutions, we have developed
training curricula for each service, in addition to providing training
by industry and on the latest trends such as fintech. We havealso improved the training we provide for soft skills, to help
professionals achieve growth at an individual level.
Keeping up with technology and improving digital literacy
With technologies such as digital, AI, IoT, and blockchain
becoming major themes in many companies, we introduced
the “Technology Foundation Program” developed by KPMGInternational. Through this program we aim to improve the digital
literacy of all our advisory professionals. We are also promoting
participation in training programs in Japan and abroad with theobjective of fostering leaders in various fields.
Hiring new grads and developing global talent for thelong term
We have prepared various curricula to help our new graduates
grow as professionals. In order to develop global talent capableof executing cross-border projects, we encourage our people toseize opportunities to improve communication skills including
language studies, in addition to working abroad and participatingin overseas training programs.

© 2020 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the
KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
© 2020 KPMG Tax Corporation, a tax corporation incorporated under the Japanese CPTA Law and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

KPMG Japan Our Story 2019/20

20

KPMG-Cube

Quality
CareerCube

Message

Masahiko CHINO
Demonstrate ourcollective strength

Head of Advisory

Disruptive technologies and innovations have not only pushed companies toundergo drastic transformations – the effects have also spread to individual
lifestyles and even industrial structure. Markets and business models that havesucceeded in the past can now disappear in the blink of an eye. Companies
must undergo transformation under such circumstances, while also facing

KPMG-

Qualitygeopolitical risks and addressing stricter regulations in Japan and abroad.
We need solutions to various challenges and obstacles for our clients to stay

Ignition
KPMG-

Cube

competitive in an increasingly global landscape and continue to grow
KPMG-

Careersustainably in the future.
KPMG Japan integrates professional expertise and proprietary methodologies
from across Audit, Tax and Advisory which are enabled through the advanced
technology at KPMG Ignition Tokyo. Through this process, we as a firm also
undergo transformation to ensure that we continue to deliver solutions thatmeet present-day client needs through the KPMG global network, andconsequently gain the trust of our clients and society.

© 2020 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the
KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

21© 2020 KPMG Tax Corporation, a tax corporation incorporated under the Japanese CPTA Law and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Matters that should have been agreed upon before
concluding an M&A deal

Communication strategy for successful M&A
KPMG conducted a survey of companies listed on the first sectionof the Tokyo Stock Exchange, and noted that responses to what
Japanese companies would have done differently in M&A procedures
included “communication with the target company” prior to the PMI
process. Sufficient communication is crucial in fostering a trusted
relationship with the management of the target company. There aremany matters relating to an integrated vision and governance that need
to be agreed upon before starting the PMI process. KPMG will support
the successful M&A of clients through our involvement from the predeal phase through the PMI process.
Connected Enterprise breaking down the walls in an
organization
Digital transformation (DX) is expanding from the front office
operations of customer service and products to middle and backoffice operations such as logistics, procurement, accounting and HR
management. There will be growing demand for connected enterprises
in which data is directly linked between different departments in atimely manner.
KPMG utilizes global best practices, taking a comprehensive approachthat not only provides cutting-edge technologies but also includes
the reworking of existing black-box systems, development of digitaltalent, and strengthening of data security. We are ready to support a
company-wide digital transformation.
Global tax governance
The introduction and strengthening of taxation schemes that apply
across corporate groups, including overseas subsidiaries, means thatthe operations of Japanese multinational companies will become moretransparent. Japanese companies must address BEPS on a global basis
including transfer pricing documentation requirements and taxation
systems designed to counter tax havens. These companies are therefore
required to transform themselves on an unprecedented scale to achieve
global tax management and cope with taxation risk. Significant tax reform
is expected to happen globally, like in the US where the corporate income
tax rate was lowered from 35% to 21%. In this context, a global approachto the tax function has become increasingly important.
KPMG supports global Japanese companies through close collaboration
between our Japanese and local tax experts, who are experienced
in diverse tax management and international taxation services andknowledgeable about best practices. In addition to addressing taxation
risk on a global scale, they also assist clients to realize globally competitiveeffective tax rates for their corporate groups.
Using technology to make internal audits more sophisticated
The impact of technological advancements has extended to the way
internal audits are conducted, with the internal audit function also
entering a period of major transformation. We are seeing a shift frompeople-centric to technology-centric businesses, with IT system-based
processing of operations and the introduction of robots. The approachand methodology of an internal audit will also be required to assess
risks and controls that accompany such environmental changes.
The introduction of technology in the operation and procedures ofinternal audits, such as data analytics and the utilization of characterand image data, has enabled more efficient and precise audit results tobe achieved than through the conventional approach of manual audit
procedures by auditors.

and dissemination of specific measures to realize
1. Creation
24%
synergies
Creation and dissemination of a post-integration vision for the
2. target company (or business)
15%
3. Relevant reviews and integration for sales and marketing 12%of corporate culture and dissemination of
4. Integration
10%
management policies
Review and organization of decision-making processes (including
5. ruleson authority) , and review of management role appointments 9%
Source: M&A Survey by KPMG FAS- Survey on key factors for successful M&A and challenges in the future

To what extent will the organization’s main businessactivities change in the next three years?
Drastictransformation

No transformation

3%

6%

Little transformation

Example: Revenue
model reform, such as atransition from products
to services

12%

Example: Evolving
existing products andservices

Large-scaletransformation

Small-scaletransformation

Example: Developing new
products and services thatare as or more effective
than existing ones

Example: Developing new
products and services
while keeping existingones the same

38%

41%

Source: Harvey Nash／KPMG CIO Survey 2019

Effective tax rates of major countries(%)
50
Effective tax rates for 2017
Effective tax rate after American corporate tax reform

40.00

33.33
29.79 30.86
24.00 25.00

25

26.50

25.84

19.00 20.00

Globalaverage24.25%

0UK

Russia

Italy

China

Canada Germany Japan

FranceUS

Source: OECD table of effective tax rates after American corporate tax reform
https://stats.oecd.org/index.aspx?DataSetCode=TABLE_II1

Examples of internal audits applying digital solutions
Risk assessment
based on data
analytics

ReportAudit
implementation

Internal audit
linked to risk
management
and compliancemeasures

Setting andplanning audit
scope

Audit plan

Task plan© 2020 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the
KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
© 2020 KPMG Tax Corporation, a tax corporation incorporated under the Japanese CPTA Law and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

KPMG Japan Our Story 2019/20

22

KPMG-Cube

Cube

KPMG-

Quality

KPMG’s collective strength combinedwith diverse expertise and global
Ignition
Cube
Careercapability helps empower change.
KPMG-

Demonstrate ourcollective strength

KPMG-

Strength in diversity

Professionals in specialized areas across KPMG Japan�smember firms work together and share industry-specificknowledge across sectors as each client engagement
demands a unique set of abilities spanning various fields ofexpertise and requires us to reach across organizationalboundaries. Only by collaborating can we support ourclients in creating value and tackling the issues they face.
At the same time, this diversity of experience enriches ourpeople and contributes to the growth of our organization asa whole.

Function / Service line

Industry
Industry

Advisory
Strategy & operations

People and change

Financial and accounting strategy

IT strategy and implementation

Transactions

Corporate financeRestructuring

Internal control

Risk management

IPO

Financial

Automotive

Tax
Domestic taxation

International taxation

Transfer pricing

M&A

Audit
Statutory audit

Technology, Media &Telecommunications

EnergyElectronics

RetailInfrastructure

Pharmaceutical

Healthcare

Public Sector

Non-statutory audit

Implementation of a corridor scheme
connecting overseas KPMG firms
The challenges faced by Japanese companies expanding
their overseas operations are becoming increasingly
complex. KPMG Japan has launched a corridor scheme withoverseas KPMG firms to support clients with global
operations. We use the term �corridor� as a reflection of ourdesire to support clients by connecting Japan seamlessly
with other countries and regions in a timely manner.
Currently we have established corridors with Thailand,
Singapore, Vietnam, the Philippines, Taiwan and India, andsupport local Japanese companies while strengthening thedevelopment of global talent within KPMG.

Thought
Leadership

KPMG publishes timely
reports on emerging
and current businessissues, incorporating
the results of surveys
and research andadding our analysis andinsights.
2019 Global CEO
OutlookAI Compliance incontrolA reality check for today's
C-suite on Industry 4.0

Global Automotive Executive
Survey 2019

© 2020 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the
KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

23© 2020 KPMG Tax Corporation, a tax corporation incorporated under the Japanese CPTA Law and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Global Japanese Practice as the core of our global capabilities
KPMG does not work in silos; Audit, Tax and Advisory
achieve borderless and seamless collaboration acrossfunctions and services. By organizing the best teams we
can send on the field, we mobilize for each client ourcollective strength based on various areas of expertise andglobal capabilities. We support and catalyze our clients'
value creation and deliver solutions to their challenges.

The Global Japanese
Practice (GJP) is our global
network that assists
Japanese companies toexpand and succeed
overseas. Expats fromKPMG Japan as well asJapanese-speaking
professionals based in 85
cities in 37 countries
provide a wide range ofservices in cooperation withother KPMG member firms.

The Americas region includes the United States, Canada, Mexico, Chile, and Brazil. The Head of the Americas
GJP is based in New York. KPMG has worked for over 40 years as a pioneer supporting Japanese companies
in the United States, where more than 280 Japanese professionals are currently located. The head of GJP for
Latin America is based in Brazil and provides assistance to business development of subsidiaries of Japanesecompanies within the sub-region.

The Americas

Europe, Middle East
and Africa

GJP in this region has its Head in London and manages services to subsidiaries of Japanese companies in the
United Kingdom, Germany and other major countries in Europe, as well as in the Eastern Europe, the Middle East
and Africa regions. Concerning the ongoing challenges of Brexit, the KPMG Brexit and EU response team, withmembers based in Japan, the UK and Belgium, are in close touch with the people and organizations behind thischange, which has significance for all our clients. Sub-region Heads are assigned to cover the Middle East andAfrica, Central and Eastern Europe, and CIS for delivering assistance specific to the sub-region.

Asia Pacific

For the rapidly growing ASEAN, China and India economies, a sub-region Head has been appointed for each. In
Oceania, East Asia (other than Japan) and South India (including Bangladesh and Sri Lanka), we are expanding
our range of services to subsidiaries of Japanese companies. These services include entry into new markets andexpansion of existing business lines.

KPMG�s global network has a presence in 153 countries and includes nearly 210,000 people. We haveestablished an organization to provide high-quality, integrated services anywhere in the world and our
professionals coordinate with each other across countries and regions, service lines and industry sectors.

KPMG’s global network

KPMG International
As of September 30, 2018

Global Japanese Practice (GJP)
As of June 30, 2019

Europe, Middle East and Africa

Asia Pacific

The Americas

Total

People106,396

43,20757,447207,050

Countries

113

20

20

153

Japanese speakers

80

390

280

750

23 cities, 16 countries

37 cities, 16 countries

25 cities, 5 countries

85 cities, 37 countries

Locations© 2020 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the
KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
© 2020 KPMG Tax Corporation, a tax corporation incorporated under the Japanese CPTA Law and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

KPMG Japan Our Story 2019/20

24

Management Committee Members / Governance StructureManagement Committee Members
KPMG Japan provides services in the three areas of Audit, Tax, and Advisory, with member firms working in harmony as one,under an efficient and disciplined management structure.

Audit

Toshiya MORI

Chairman, KPMG Japan /Chairman, Global Japanese Practice

Hiroyuki TAKANAMI
CEO, KPMG Japan /CEO, KPMG AZSA LLC

Audit

Takuji KANAIHead of People,
Performance and Culture

Head of Audit

Audit

Hideaki KOYAMAHead of Quality and Risk Management

Mitsugu DOI

CFO

COO

Audit

Hiroyuki YAMADA

Advisory

Chairman of the Senior Review Board,
KPMG AZSA LLC

Audit

Masahiro MIYAHARA

Yutaka TERASAWA

President, KPMG Consulting

Head of Financial Services

Audit

Eiji MIZUTANI

Audit

Toshihiro OTSUKA

Audit

Daisuke HARADA

Head of Kansai Area and Osaka Office
Managing Partner, KPMG AZSA LLC

Audit

Michitaka SHISHIDO
Head of Tokai Area, KPMG AZSA LLC© 2020 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the
KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

25© 2020 KPMG Tax Corporation, a tax corporation incorporated under the Japanese CPTA Law and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Governance Structure
KPMG Japan stands on the foundation formed by an audit firm
and a tax accounting firm. Our audit firm is committed tocontributing to the sound development of the economy byensuring the credibility of financial information from an
independent point of view, thus ensuring fair corporate activities
and the protection of stakeholders. Our tax accounting firm’s
mission is to live up to the trust placed in us by taxpayers andensure, from an independent and fair-minded position, that tax
obligations are fulfilled appropriately.
As a professional firm that bears this social responsibility,
member firms of KPMG Japan provide advisory services tosatisfy the needs of clients and society and achieve Our Vision of
being the Clear Choice.

Tax

Advisory

Yuichi KOMAKINE

Masahiko CHINO

Head of Tax / Senior Partner,
KPMG Tax Corporation

Head of Advisory / Representative
Partner, KPMG FAS

TaxAdvisory

Tatsuya ENDOH

Hikaru OKADA

Deputy Head of Tax, KPMG Tax
Corporation

Head of Deal Advisory / Representative
Partner, KPMG FASManagement policies of KPMG Japan Management
Committee
The KPMG Japan Management Committee comprises
representatives from the major member firms of KPMG Japan
including KPMG AZSA LLC, KPMG Tax Corporation, KPMG
Consulting, and KPMG FAS. The Committee discusses anddecides on the collaborative structure used by KPMG Japan aswell as material matters pertaining to the management of thefirms, including talent development, service improvement, andquality control. In this way, we are able to pool all of the available
resources of KPMG to deliver the best possible services thatmeet our clients’ management requirements.
KPMG Japan’s governance
As an accounting firm with a public interest mission, it is ourpolicy not to simply seek profit but to provide services that
contribute to the sound growth of clients and live up to the trust
placed in us by society. This policy is not limited to audit and tax
compliance, but applies to all of our services.
In order to live up to the high expectations for our firm in thisconstantly changing environment, we are continually seeking theideal group governance model.
Provision of non-audit services may cause a breach of
independence where we also provide audit services or aconflict of interest between non-audit services. To avoid thesesituations, we continue to strengthen firm governance and use
Sentinel, KPMG International’s proprietary global conflicts andindependence checking system.

Agenda of the KPMG Japan Management Committee
July 1, 2018 – June 30, 2019

11%

17%

20%

25%

By topic

19%

Audit

By
geographic
area

64%

KPMG Japan
Management
Committee

29%(KJMC)

15%
Developing talent
Strategy
Performance and business planning
MarketingGovernance and risk management

Japan
GlobalAsia Pacific

Advisory

Tax

KPMG Japan Our Story 2019/20

26

Service Line

Audit

KPMG AZSA LLC

In recent years, society has come to expect not only financial
information, but also credibility and transparency from corporations
regarding their activities. The scope of assurance engagements has
therefore been expanding.
With KPMG AZSA’s financial audit services at our core, KPMG
Japan also provides assurance services for areas including internal
control, IT systems and sustainability related information.
By providing credible services related to financial and nonfinancial
information, we contribute to the growth of clients and theeconomy.

Service Line
Promotion of information technologies within
the business has eliminated restrictions of timeand space on economic activities and taken
corporate activities to a new level.
Connecting all information in a network has
sharply reduced the cost of informationnecessary for decision-making, thus making
accurate information and credible insights morevaluable than ever.
KPMG Japan provides audit services to ensure
the credibility of financial information, tax

Tax

KPMG Tax Corporation
KPMG Social Insurance and Labor
Advisors Corporation

KPMG Tax Corporation provides tax services in Japan.
The global business landscape is continuing to undergo tremendous
change and companies are ever more exposed to new challenges suchas measures taken by tax authorities to address aggressive tax
avoidance by multinational corporations.
By drawing on not only our Japan network but also our tax professionals
from KPMG's global network, we are dedicated to helping our clients
succeed and are passionate about providing comprehensive advice.
Using our understanding of governance and our deep industry
knowledge, we help clients stay competitive and compliant.

services to promote fair tax practices andcontribute to trust in society, and advisory
services based on credible insights to clear away forward in an increasingly complex society.

Advisory

KPMG AZSA LLC
KPMG Consulting Co., Ltd.
KPMG FAS Co., Ltd.
KPMG AZSA Sustainability Co., Ltd.
KPMG Healthcare Japan Co., Ltd.

KPMG Japan’s advisory services comprise three service groups:
Risk Consulting, Deal Advisory, and Management Consulting.
As our clients face more complex and sophisticated management
issues, our experts across various fields work as one in providing
optimal solutions through our global KPMG network to support thesustainable growth of our clients.

© 2020 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the
KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

27© 2020 KPMG Tax Corporation, a tax corporation incorporated under the Japanese CPTA Law and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Service Line

KPMG Japan’s initiative for social value creation

Digital audit initiatives
KPMG AZSA established Digital Innovation as an

Tool Book

expansion of the current Statistical and Technological

Subsidiary analysis

Audit Research Team, to ensure that our audits utilize
the latest technologies and meet the expectations ofsociety.
Our Digital Innovation group will drive the digitalizationof audit, and provide clients and the public with valueadded insights and knowledge. Through an organic
liaison with KPMG Ignition Tokyo, which supports
clients’ digital transformation and innovation, they will
incorporate cutting-edge technologies including AI into
audit procedures.

We have published a brochure summarizing some of the solutions we havedelivered in the digital audit field to share with our clients and for our audit
teams to use in discussions.

KPMG Japan’s initiative for social value creation

Ten Things to Do to Achieve for Global Tax Management
Guidelines for Japanese companies to solve challenges in the global tax environment

For Japanese companies accelerating

departments of Japanese multinationals

the expansion of their businessunderstand what they need to address

overseas, the establishment of a global

in the current environment.

tax management system is an important

Furthermore, KPMG Internationaland ongoing management issue.

publishes the Global Tax Benchmarking

KPMG Tax Corporation regularly

Survey report assessing the current

publishes an online newsletter titledstatus and future outlook of tax“Ten Things to Do to Achieve Global Tax

departments worldwide, which offers

Management” which provides

useful information regarding theguidelines for headquarters regarding tax planning, tax risk

challenges and opportunities, such as the scope of duties,

management, and other tax issues to help support the tax

structure and budget of the tax department.

KPMG Japan’s initiative for social value creation

Introducing the Advanced Innovative Technology team
While there have been in recent years an increasing number

professionals. An advanced business field requires decision-of projects utilizing cutting-edge technology including AI for

making among a limited number of people, and any mistakes

businesses, we believe that few have actually achieved

in decision-making can have a significant impact. AIT use AI

transformation at a fundamental level. Advanced Innovativeand other cutting-edge technology to enable anyone toTechnology (AIT) uses advanced technology to address

reproduce a company’s tacit knowledge, thereby enhancing

companies’ deep challenges, the essential nature of their

the sophistication of the business.

business, and their corporate strategy. This allows us to focus

Turning tacit knowledge into explicit knowledge allows

on ways to turn a company’s tacit knowledge into explicit

everyone to access the wisdom of our predecessors, making

knowledge.

it possible to gain speed and credibility in business. We are

The more advanced a business field is, the more theworking on this initiative with the belief that it will contributebusiness is based on the tacit knowledge of competentto a competitive-edge for Japan in the future.

© 2020 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the
KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

28© 2020 KPMG Tax Corporation, a tax corporation incorporated under the Japanese CPTA Law and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Service portfolio
Statutory audit

Nonstatutory audit

Audit under the Financial Instruments and Exchange Act

Financial statement audit of companies to which statutory audit is not applicable

Audit under the Companies Act

Audit in accordance with the Financial Instruments and Exchange Act for the
purpose of public offering

Audit of Financial Statements prepared in accordance with
the International Financial Reporting Standards (IFRS)

Audit of financial statements prepared in accordance with special purpose framework

Audit of financial statements under SEC standards

Audit of single financial statements and specific elements, accounts or items of afinancial statement

Incorporated administrative agency audit

Systems audit/project audit

Incorporated educational institution audit
Credit union, workers’ credit union, credit cooperative audit

Assurance

Labor union audit

Assurance engagement other than auditor review of historical financial information
Assurance engagement for internal control concerning fiduciary obligation

Investment Limited Partnerships (ILPs) audit

Information security verification services

Special Purpose Company (SPC) audit

Assurance engagement for sustainability reporting

Service portfolio

Addressing BEPS* issues through KPMG’sinternational tax and transfer pricing services
Following the OECD’s fundamental review of global tax
rules, multinational companies are required to submit
country-by-country reports, which could increase the riskof double taxation. While the appropriate control of taxrelated risks is a key issue, many companies in Japan do nothave a clear understanding of their overseas subsidiaries’
tax status resulting in a lag in the implementation of a
global tax governance policy. Going forward, it is only amatter of time before tax authorities set up an information
network globally and companies’ profit and loss and tax
burden in each jurisdiction becomes transparent. In suchan environment, the proper handling of BEPS issues will

International tax

Transfer pricing

Domestic tax

M&A

Real estate transactions

Global mobility

Finance & technology

Outsourcing

present a critical challenge for companies to become truly
global. At KPMG Japan, we help Japanese companies build aglobal tax governance system which is spearheaded by their
headquarters in Japan. We support clients to enhance their
management process and help them succeed amidst intenseinternational competition.

*BEPS: BEPS or Base Erosion and Profit Shifting refers to multinational companies’ tax avoidance strategies on the basis of national taxation. As BEPS is regarded as a factor that could
threaten the credibility of tax schemes, international measures are being carried out to prevent it.

Advisory Service Framework
Risk Consulting

Deal Advisory

Management Consulting

We provide practical know-how
regarding potential risks to growth andthe smooth operation of clients’business. This includes challenges
related to the increasingly complex
financial accounting function, risk
management, compliance and internal
control, as well as internal audit and IT
security, among other areas. We also
support clients in building andimplementing optimal global groupmanagement structures.

We provide comprehensive one-stop
support needed from pre-deal to postdeal for M&A advisory and businessportfolio restructuring to assist clients inrevitalizing their businesses. We also
provide services relating to theformulation and implementation of
growth strategies.

We support the transformation ofbusiness models and operations of clients
doing business globally. Consulting
services utilize digital technologies toprovide comprehensive support, covering
a wide range from planning of business
operations and digital strategies, supply
chain optimization and management
framework reorganization, to designing oforganizational and personnel systems,
and proposals on how to use IT andsystems to achieve the optimal effect foreach of these services.

Industry-specificadvisory

29

KPMG uses global tools based on a wide range of up-to-date industry information accumulated across ourglobal network, while collecting knowledge from As-a-Service models such as MaaS, which are used acrossdifferent business fields in order to respond to diverse needs.

Reasons to choose us*1 Refers to the reconsideration and restructuring of thetax function, an essential part of creating a global tax
management structure in Japanese companies

Our Story - Audit 201901

01

A quality control system that clarifies roles
and responsibilities and helps management
policies to be disseminated throughout theorganization (Four Defense Lines)

Delivered audit services anddemonstrated expertise andprofessional skepticism to respond tovarious risks that companies face

02

02

Initiatives centered around KPMG Ignition
Tokyo with the objective of using cuttingedge technology for advanced data
analysis

Improved the effectiveness andefficiency of audit operations byadopting audit methods driven by Data
& Analytics

03

03

Use of KPMG’s global network anddiversity of professionals who can copewith globalization issues faced bycompanies

Established necessary audit infrastructure
to allow judgments to be made within
Japan, which includes expertise on IFRS,US GAAP and Japan GAAP,

Reasons to choose us

Our Story - Tax 2019

01

01

Our capabilities in providing crossborder services by utilizing KPMG’s
global network

Expanded M&A related services in linewith an increase in overseas expansions
and cross-border transactions by
Japanese companies

02

02

A wealth of top-class tax
professionals with expertise ineach specialized area

Increased international tax and transfer
pricing services to respond to thegrowing importance for multinationals to
address BEPS

03

03

Provision of practical tax advice
with cutting-edge IT technology inaccordance with the particularneeds of clients

Provided tax cost optimization services
in relation to development/reorganizationof a supply chain which takes account ofcustoms duties and other indirect taxes

Reasons to choose us

Our Story - Advisory 2019

01

01

Provision of one-stop advice,through organic collaboration withspecialists with various expertise indifferent service lines and industries
and KPMG’s global network

Undertook cross-border, crossfunctional comprehensive
initiatives to fulfill various needs ofglobalizing corporations

02
Use of advanced technologies tosupport the transformation ofclients’ business models andoperations

03
Provision of quality-focused services
by professionals with expertise02
Expanded initiatives to use
cutting-edge digital technology,
such as AI, the cloud, robotics andblockchain

03
Provided advisory services that
address expanding risks andopportunities presented byadvanced digital technology© 2020 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the
KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
© 2020 KPMG Tax Corporation, a tax corporation incorporated under the Japanese CPTA Law and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

KPMG Japan Our Story 2019/20

30

Citizenship / Inclusion & Diversity

Citizenship
We take our role as a corporate citizen in society seriously.
In addition to fulfilling our responsibilities as professionals,
we act in good faith to help enrich the society and environment that support us.

Managerial talent development
KPMG AZSA holds pro bono seminars at research institutions
including graduate schools, as well as a seminar for thedevelopment of female leaders in finance and accounting.
Through these activities, we hope to contribute to theimprovement of business management literacy by making themost of our accumulated professional skills and insights.

Career development support for elementary,high-school and university students
As a pro-bono activity in the education field, KPMG Japansupports the development of next-generation leaders inlooking ahead to the future. We support the mission of CEEJapan (Japan branch of the Council for Economic Education),and professional volunteers from KPMG Japan held model
classes on economic education at public elementary andmiddle schools in Saitama in March 2019, and at a private
high-school in Tokyo in June 2019.
In June of the same year KPMG Japan and KAPIONEDUCATION ORGANIZATIONS jointly hosted the “KPMG
Educational Impact Workshop for GTE” for middle and highschool students at our Otemachi office.

Sports-related initiatives
KPMG Japan also supports sports-related initiatives. One
example is our support for the development of sports forthe people with disabilities in Japan. We provide services
for the internal audits conducted by the Nippon Foundation
Paralympic Support Center for each athletics organization,in addition to sponsoring blind soccer, an official Paralympic
sport since 2016.

©Nippon Foundation Paralympic Support Center© 2020 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the
KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

31© 2020 KPMG Tax Corporation, a tax corporation incorporated under the Japanese CPTA Law and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Inclusion & Diversity
Building an inclusive future for all entails not only providing a comfortable workplace environment as our HR policy,
but building strategic foundations to strengthen our competitive edge and growth as a business.
We would further embrace diversity, so our people can demonstrate their capabilities throughacknowledging and making the most of one another’s individual qualities, and work towards the same goal ofcontributing to our clients and society through providing high-quality services.

WWN

Sponsorship of W20 JapanWe sponsored for the W20 Japan 2019 summit held on March
23-24, 2019, where Nobel Peace Prize laureate, Malala Yousafzaidelivered the keynote speech. Three thousand people, including
distinguished guests from across the globe and foreign ministers
from eight countries, joined the event.
In various breakout sessions, based on the SDGs (Sustainable
Development Goals) theme of Realizing a sustainable societythat is diverse and inclusive and ensures that “not one person
is left behind”, participants from diverse backgrounds held
discussions on societal issues in Japan and internationally.
KPMG Global Head of People, Susan Ferrier, participated in
the panel discussion “Closing the Gender Gap at Work” andshared her insights on the various challenges women face froma gender gap in the workplace and at home, along with specificmeasures to close the gap.

(Working Women’s Network)

WWN was established in 2007 by female employees of KPMG
AZSA, based on the concept that a women-friendly working
environment is one in which everyone feels comfortable and free
to make full use of their abilities.
It aims to provide working people with opportunities for growthand developing their capabilities, as well as offering opportunities
for networking and mutual improvements. We use the term
“women,” but the network is intended to encourage all working
people regardless of gender to grow as business professionals
while making the most of their diverse personalities through theircareers and various life events.

*W20 is an official G20 engagement group that proposes policy recommendations related to
women. Engagement groups influence the creation of a new international economic order bymaking policy recommendations to the G20 leaders.

TOKYO RAINBOW PRIDE 2019TOKYO RAINBOW PRIDE is an event that promotes a society of acceptance andequality, in which all people can have pride in who they are and enjoy life.
As the two main events of the largest LGBT celebration in Japan, there was a festival
at Yoyogi park and a parade in Shibuya/Harajuku on April 28-29, 2019. Members fromKPMG Japan also joined the festivities to celebrate and promote inclusivity.
© 2020 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the
KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
© 2020 KPMG Tax Corporation, a tax corporation incorporated under the Japanese CPTA Law and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

KPMG Japan Our Story 2019/20

32

Our Performance / Overview of Member Firms

Our Performance
Revenue (hundred million yen)
Advisory

Tax

Number of Employees

Audit

Advisory

1,562
1,387
497

169
721

June 2017

1,449

Tax

8,309

611

7,883

517

2,532

Audit

8,616
2,747

2,352

664

166

169

765

782

June 2018

June 2019

4,867

June 2017

694

697

5,083

5,172

June 2018

June 2019* Tax service revenues included are for fiscal years
from October 1 to September 30.

Number of Global Professionals*

Number of Employees Seconded Overseas

2,715

735

2,567

679

2,427

June 2017

June 2017

June 2019

June 2018445,345
398,153

632

June 2018

Aggregate Training Hours

June 2019

June 2017

416,888

June 2018

June 2019* Global professionals are those who have overseas
work experience, have been in global skill training
courses, or are foreign nationals.

M&A Advisory Ranking (including banks, securities companies, and other financial institutions)
Source: Refinitiv (formerly Thomson Reuters Financial & Risk)

Based on publicly
announced deals

2017

2018

2019

5

5

4

Based on In-Out deals(Acquisition of foreign companies by companies based in Japan)

2017

2018

2019

3

3

1

© 2020 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the
KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

33© 2020 KPMG Tax Corporation, a tax corporation incorporated under the Japanese CPTA Law and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Overview of Member Firms
About KPMG

KPMG International(As of September 2018)

KPMG is a global network of professional firms providing Audit, Tax and Advisory services.

Revenues

US$28.9 billion

Number of personnel

207,050

the KPMG network are affiliated with KPMG International Cooperative (“KPMG

Number of countries

153

International”), the Swiss entity.

Registration

Zug, Switzerland

The KPMG network was formed in 1987 when Peat Marwick International (PMI) and Klynveld
Main Goerdeler (KMG) merged along with their respective member firms. Member firms of

KPMG Japan Member Firms

KPMG Japan

KPMG AZSA LLC

CEO, Hiroyuki TAKANAMIKPMG Healthcare Japan Co., Ltd.

KPMG AZSA LLC offers professional services, including audit,
assurance, IFRS advisory, accounting advisory, financial advisory,
Toshiya MORI
IT advisory, and middle market development. In addition, weCEOdeliver expert services tailored to the sector-specific needs ofHiroyuki TAKANAMI
the financial, information/telecommunication/media, retail,energy, manufacturing, and public sectors.

Keiichi OWARI, Jun MATSUDA

Chairman

KPMG Tax Corporation

Representative Partner, Yuichi KOMAKINEKPMG Tax Corporation’s teams of specialists offer bespoke tax
advice to Japanese companies, Japanese subsidiaries of foreigncompanies, and more. Our tax-related services include
preparation of tax returns, tax investigation support, advice
related to M&A, corporate restructuring and revitalization,
consolidated tax return filing, international taxation, transfer
pricing, customs and tariffs, and business inheritance.
KPMG Consulting Co., Ltd.

President, Masahiro MIYAHARAKPMG Consulting assists clients to transform business models
or improve operations through the utilization of advanced
technology. Our advisory services are diverse, some of which
include business strategy planning, improvement in operational
efficiency, profit management capability, governance, risk
management, IT strategy planning, IT system/tool
implementation support, organization and human resource
management reform, and cyber security.
KPMG FAS Co., Ltd.

Repredsentative Directors, Hikaru OKADA,
Osamu MATSUSHITA, Masahiko CHINOKPMG FAS offers comprehensive support across all phases ofcorporate activities to add the most value, ranging from strategy
planning and transactions (such as M&A, business restructuring,and corporate revitalization) to post-deal. Primary services are
related to M&A advisory work (feasibility analysis, valuation, due
diligence, structuring advice), corporate revitalization advisory
work, management strategy consulting, and fraud investigation.

Representative Directors,

KPMG Healthcare Japan provides business andfinancial advisory services in the healthcare industry,including medical and nursing care. Advisory services
are related to strategy, risk evaluation, M&A, finance,and business revitalization.
KPMG AZSA Sustainability Co., Ltd.
Managing Partners,
Kazuhiko SAITO, Yoshitake FUNAKOSHIKPMG AZSA Sustainability provides third-party
assurance services for companies to raise thecredibility of their non-financial information. We assist
companies’ pursuit of sustainability by supporting
corporate performance and risk control in thesustainability field as well as enhancement of nonfinancial disclosures.
KPMG Social Insurance and Labor Advisors Corporation
Representative, Mayumi OGAWAKPMG Social Insurance and Labor Advisors provides
outsourcing services to back-office administrative
operations primarily for foreign corporations entering
Japan and subsidiaries of Japanese companies.
Specific services range from support of theestablishment of a legal entity in Japan to ongoing
human resource services (payroll and social/labor
insurance administration).
KPMG Ignition Tokyo Inc.
CEO, Masayuki CHATANIKPMG Ignition Tokyo is a hub for combining theknowledge of our professionals and digital experts
with the latest digital technologies and supporting
Japanese clients on their digital transformation journey.
We collaborate with the global organization and KPMG
Japan member firms to create common foundations
and solutions and to support our clients in the business
transformations that accompany digitalization.
AZSA Office Mate Co., Ltd.
President, Michitaka SHISHIDO

In order to assist individuals with disabilities achieve
independence, AZSA Office Mate employs individuals
with primarily intellectual disabilities as “office mates.”
These employees are responsible for work including
preparation for external seminars, printing and binding
materials, sorting and filing accounting documents,
sorting and shipping of stationary for reuse, businesscard printing and restocking of stationary.

Editorial Policy Since 2015, we have been issuing KPMG Japan Our Story, which
reports on KPMG Japan’s shared principles and philosophy, as well as initiatives whereby
we can consistently respond to social and client expectations to provide more value as agroup of professional firms dedicated to delivering outstanding service. This report is
prepared and edited with the principles of integrated reporting in mind.

Reporting Period Performance data is provided for primarily the period of July 2018
– June 2019. In addition to reviewing the current state of the firm, the report also presents
our outlook for the years to come.

Scope of the Report In principle, the Report focuses on KPMG Japan’s member firms.
Information and performance data of specific organizations are individually described.
KPMG Japan’s member firms are listed above.

Contact Information KPMG JapanOTEMACHI FINANCIAL CITY South Tower 1-9-7 Otemachi, Chiyoda-ku, Tokyo 100-8172+81-3-3266-7562

Publication date October 2019

© 2020 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the
KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
© 2020 KPMG Tax Corporation, a tax corporation incorporated under the Japanese CPTA Law and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

KPMG Japan Our Story 2019/20

34

KPMG JapanOTEMACHI FINANCIAL CITY South Tower
1-9-7 Otemachi, Chiyoda-ku,
Tokyo 100-8172
TEL: +81-3-3266-7562

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KPMG Japan Our Story 2019 / 20

Contact us

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2019/ 20
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The information contained herein is of a general nature and is not intended to address the circumstances of any particular
individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that suchinformation is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act onsuch information without appropriate professional advice after a thorough examination of the particular situation.
© 2020 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law
and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative(“KPMGInternational”), a Swiss entity. All rights reserved.20-8003© 2020 KPMG Tax Corporation, a tax corporation incorporated under the Japanese CPTA Law and a member firm of the KPMG
network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.
All rights reserved.
The KPMG name and logo are registered trademarks or trademarks of KPMG International.

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