Provisional Translation

Case Studies relating to Collaborations andJoint Ventures between Japanese andForeign Companies in Japan

Investment Facilitation Division,
Trade and Economic Cooperation Bureau,
Ministry of Economy, Trade and Industry
April 2024

Table of Contents: Overall Structure
Introduction
Key Points for Case Studies
1. Overview of Collaborations and Joint Ventures Between Japaneseand Foreign Companies in Japan
1.1 Overview of Acquisitions, Business Transfers, and Capital Participation and Investment Expansion(OUT-IN) (By Investment Ratio)
1.2 Changes in Inbound M&A transactions, etc.
1.3 Changes in Acquisitions and Business Transfers (OUT-IN)
1.4 Changes in Capital Participation and Investment Expansion (OUT-IN)
1.5 Overview of Inbound M&A transactions in Each Country

2. Key Points and Benefits for Collaborations and Joint Ventures
Between Japanese and Foreign Companies

p. 3
p. 4
p. 5
p. 6
p. 7
p. 8
p. 9
p. 10

p. 11

2.1 Key points identified in the Collaborations and Joint Ventures Between Japanese and Foreign Companies p. 12
2.2 Overview of Objectives and Benefits for Collaborations and Joint Ventures Between Japanese andForeign Companies(Summary)
p. 14
2.3 Overview of Objectives and Benefits for Collaborations and Joint Ventures Between Japanese andForeign Companies (Actual Voices/Opinions)
p. 15

3. Individual Cases
3.1
3.2
3.3
3.4
3.5
3.6

Investment Patterns in this Research
List of Collaboration and Joint Venture Case Studies
Index: Search for Cases by Benefits
Composition of Collaboration and Joint Venture Case Studies
Executive Summary
Detailed Case Studies

4. Columns, Definitions and Explanations of Various Terms

p. 16
p. 17
p. 18
p. 19
p. 20
p. 21
p. 33

p. 65

4.1 Column ①:Ways by which the Japanese companies have overcome corporate culture (business practice) p.66
differences with foreign companies
4.2 Column ②: Cautions based on the Dissolved Cases of Collaborations or Joint Ventures with Foreign
p.67
Companies
4.3 Column ③: Utilization of Collaborations and Joint Ventures with Foreign Companies to Enhance
p69
Management at SMEs
4.4 Definitions and explanations of terms
p.70

1

Table of Contents: Individual Cases
No.

①
②

③

Company Name
(Investee)

Pattern
Majority
Investment

Minority
Investment

Industry

Page Number

Fuji Staff Group

servicep.22,34-36

BRANDLIFT CO.,Ltd（Parent company of TAKAMI co., Ltd）

Chemicals

p.23,37-39

UPWARD, Inc.

Software &p.24,40-42
Information
Software &p.25,43-45
Information
Software &p.26,46-48
Information④

PLAID, Inc.

⑤

ARISE analytics, inc.

⑥

KOMASA KANOSUKE DISTILLERY CO.,LTD

Foods

⑦

JTB System Solution（Currently I&J Digital
Innovation）

Software &p.28,52-54
Information

TG Octopus Energy Co., Ltd.

Other Retail p.29,55-57

BASF TODA Battery Materials LLC.

Chemicals

p.30,58⑩

Hitachi ABB HVDC Technologies Ltd.
(currently Hitachi Energy Japan Ltd.)Electric
Power andGas

p.31,59-61⑪

Mitsubishi UFJ Morgan Stanley Securities Co.,
Securities
Ltd.

p.32,62-64

⑧
⑨

Joint
Venturep.27,49-51

2

Introduction◼

In the rapidly changing global economy and business environment, where corporate management issues are becoming more complex anddiverse, it is important for Japanese companies to create innovation and reform their business models so that they can achieve sustainablegrowth. Strengthening management and expanding sales channel through collaboration with foreign companies can be an effective option
for this purpose. On the other hand, due to psychological hesitation towards foreign capital and delays in establishing internal management
systems, Japanese companies lag behind of their competitor companies in other countries, with respect to collaborations and joint ventureswith foreign companies.

◼

Japan has been implementing government-wide initiatives to promote foreign direct investment (FDI) in Japan and formulated the “Action
Plan for Attracting Human and Financial Resources from Overseas,” which was adopted on the 26th of April 2023 (Decision by the Council
for Promotion of Foreign Direct Investment). As part of this effort, the Ministry of Economy, Trade and Industry (METI) has developed ‘Case
Studies relating to the use of inbound M&A transactions-Case Studies of Japanese companies that leveraged foreign capitals for corporate
reforms, management enhancement, and dramatic growth’ (Announced on April 19, 2023). In this research, inbound M&A cases wereselected for reference when Japanese companies consider selling their businesses to foreign companies or private equity funds as one of
their management options. These case studies also summarized the effects and significance of inbound M&A, as well as points to keep inmind. Furthermore, in August 2023, METI formulated the “Guidelines for Corporate Takeovers”. The purpose of the Guidelines is to present
principles and best practices that should be shared throughout the economy to develop fair rules regarding M&A transactions, with a focus
on how parties should behave in the context of acquiring corporate control of a listed company.

◼

“Case Studies Relating to Collaborations and Joint Ventures between Japanese and Foreign Companies in Japan” present 11 carefully
selected cases of Japanese companies that have succeeded in effectively utilizing overseas capital to solve management issues and achieve
corporate growth, including their acceptance of joint investments with foreign companies and minority investments from foreign companies.
To provide the most practical contents possible, the case studies also outline the background, challenges, history, and purposes of Japanesecompanies’ collaborations and joint ventures with foreign companies as well as the process of collaboration(consolidation) and the results
achieved after accepting such investments. It also presents in an organized manner : Japanese companies’ efforts made to solve challenges,
key points of success, and devised efforts in advancing collaborations and joint ventures, and these may also apply similarly tocollaborations and joint ventures between Japanese companies.

◼

We hope this research will be helpful to readers in solving their business challenges and accelerating corporate growth.

◼

This research was prepared under a contract with the Japan Research Institute Limited, as part of a FY2023 project and based on
discussions at the "The Study Group for Collaboration and Joint Venture Cases Between Japanese and Foreign Companies”. It has also been
prepared with the generous cooperation of the managers and persons in charge of the companies selected as case studies, as well as allconcerned parties. We would like to take this opportunity to express our gratitude to all those involved.

Note: In this report, "M&A with Japan, etc." refers to investments in which the foreign company is the investing company and the Japanese company is the invested
company, and is classified by type of investment as "merger," "acquisition," "business transfer," "capital participation," and "investment expansion. In addition, “Inbound
M&A" refers to "mergers," "acquisitions," and "business transfers" among “Inbound M&A, etc." (see page 6 for the definition of "merger" etc.).

3

Key Points for Case Studies⚫

Most of Japanese companies that have collaborated with foreign companies did so, because theyexperienced a sense of crisis that they could not solve by themselves their business objectives such as
generating sustainable growth and overseas expansions. These companies have chosen to partner witha foreign company that shared common management policies and philosophy and could
complement their management resources.

⚫

For successful collaborations, it is important to clarify the purpose and goals of the collaborations andjoint ventures in the light of the strengths and weaknesses of the company, and then carefullycommunicate within the company and with the foreign partners in collaborations or joint ventures
to deepen mutual understandings relating to any differences in corporate cultures and business practices .

Background and Sense of Issues
⚫
⚫
⚫
⚫
⚫

Achieving sustainable and dramatic growth by incorporating new management expertise
Creating innovations and new business models by leveraging foreign companies' technologies, among others
Expanding and developing the business globally by leveraging foreign companies' sales networks, among others
Incorporating foreign companies’ approaches for human resource development and management methods into theircompany system
Engaging in the DX activities and providing more advanced services

Benefits・Significance⚫
⚫
⚫

Management (Creation of new business models andinnovations, strengthening of management base)
Operations (strengthening of sales and marketing capabilities,
expansion of capacity for production and development, andimprovement on productivity)
Employees (human resources development and retention,
improvement of working environments and conditions)

Key Points for Success⚫
⚫
⚫
⚫

Establishing clear objectives and goals for collaborations andjoint ventures
Identifying and communicating your company's strengths andweaknesses
Establishing mechanisms that enable close communication
Taking time to discuss even after the start of collaboration

Establishing Contact with Foreign Companies⚫ Initial approaches from foreign companies⚫ Initial approaches from Japanese companies⚫ Networking events through industry associations,consulting firms, and investment banks, among others

Difficulties related to Collaborations⚫

⚫
⚫

Explaining within the company about collaborations andjoint ventures
Responding to employees’ concerns and inquires
Responding to differences in corporate cultures andbusiness practices4１. Overview of Collaborations and Joint Ventures Between Japaneseand Foreign Companies in Japan
1.1 Overview of Acquisitions, Business Transfers, and Capital Participation
and Investment Expansion (OUT-IN) (By Investment Ratio)
p. 6
1.2 Changes in Inbound M&As transactions, etc.

p. 7

1.3 Changes in Acquisitions and Business Transfers (OUT-IN)

p. 8

1.4 Changes in Capital Participation and Investment Expansion (OUT-IN) p. 9
1.5 Overview of Inbound M&A transactions in Each Country

p. 10

5

1.1 Overview of Acquisitions, Business Transfers, and Capital Participation
and Investment Expansion (OUT-IN) (By Investment Ratio)◼ The total number of M&A deals that Japanese companies have been involved in is 62,407 (total from 2000-2023).* Of these, thenumber of inbound M&A transactions (OUT-IN), in which foreign companies invest in a Japanese company, was 3,594 (for the same
period noted above), making up 5.8% of the total number of deals◼ Examining inbound M&A transactions by type of investment and ratio (excluding mergers), "acquisitions" and "business transfers"(majority investment: foreign capital ratio of over 50%) accounted for approximately 38% of all inbound M&A transactions, while "capital
participation" and "investment expansion" (minority investment: foreign capital ratio of 50% or less) accounted for approximately 62%◼ In this research, collaboration cases have been classified and organized into three patterns: ① acceptance of majority investment in theInvestee Company, ② acceptance of minority investment in the Investee Company, and ③ acceptance of investment in a subsidiary or
the establishment of a joint venture through joint investment (see page 17). Based on this, this research introduces primarily examplesof ② minority investments and ③joint investments, while also including case studies where the synergies of collaboration were
demonstrated in ① majority investment deals in which a foreign company invests in a Japanese SME or company with regional locations* Deals are categorized into domestic M&A (IN-IN), outbound M&A (IN-OUT) and inbound M&A (OUT-IN) based on the nationality of the investor company and investee
company
Type of investment of inbound M&A transactions, etc. and overview
Type ofinvestment

Overview (from RECOF M&A database)Merger• When two or more companies become a single company under amerger agreement. A merger (share transfer/creation of a holding
company) is the process of creating a joint holding company through ashare transfer and integrating the companies

Acquisition

Businesstransfer• Acquisition of more than 50% of shares. This includes cases of 50% orless of share acquisition, if management is controlled. These can also
include underwriting new capital, acquiring from existing shareholders,exchanging shares, and granting shares• In the case of a company divesture where the divesting company
becomes the parent company of a successor company, or when amerger results in the parent company of a consolidated company
becoming the parent company of a surviving company, these may also
be considered as acquisition

Inbound M&A transactions by type of investment and ratio(total for 2000-2023)

N＝2,101(*)(No. of deals, percentage)

Minority
investment• The transfer of a “business” consisting of assets, employees, goodwill,
etc. The integration of existing businesses between two companies may
also be included• In principle, company divestures are classified as business transfers.
However, this does not include cases where the successor company
becomes a subsidiary

Capitalparticipation• Acquisition of 50% or less of shares. However, this does not include
cases where the company becomes a subsidiary. Capital participation is
implemented through underwriting of capital increases or acquisition ofshares from existing shareholders. Limited to the first time ofacquisition

Investment
expansion• The acquisition of additional shares of 50% or less by the party
providing a capital participation. However, if the investor already owns
more than 50% of the shares or if the company is a subsidiary,acquisition of additional shares is excluded from the category ofacquisition or investment expansion

Less than 20%
999 (48%)100%
473 (23%)

Majority
investment
66.7% ormore, lessthan 100%

158 (8%)50% or more,less than 66.7%

160 (8%)20% or more,less than 33.4%
158 (8%)33.4% or more, lessthan 50%
153 (7%)

Source: Created based on the RECOF M&A database (Period between 2000/1/12023/12/31).The graph excludes the sale of overseas corporations of Japanese companies.
The percentages are rounded off, so the total may not be 100%. (*) Calculated based oninvestment ratio after investment, excluding deals with an undisclosed investment ratio.) 6

1.2 Changes in Inbound M&A transactions, etc.

*Mergers, acquisitions, business transfers, capital participation, and investment expansion◼ The three-year moving average of Inbound M&As, among others, in Japan (OUT-IN) is approximately
three times higher in the number and approximately five times higher in the value as compared to ten
years ago, and the number is at the highest level in the past 20 years
Level of Inbound M&A, among others, in Japan (number and value (3-year moving average)) ＊1（cases）
250（in billions of yen）
9,000
8,000

200

7,000
6,000

150

5,000

4,000

100

3,000
2,000

50

1,000
0

0
2000200120022003200420052006200720082009201020112012201320142015201620172018201920202021
No. of OUT-IN

Amount of OUT-IN

Amount of IN-IN＊1 The average amount obtained by adding the amount of the previous and following years to the amount of the applicable year and dividing it by the number of threeyears (Example: the value for 2021 is the average value for 2020-2022). The trend of the amount for each year is especially difficult to grasp depending on the occurrenceof large deals, so a three-year moving average was used.
Source：Created from the RECOF M&A database (for OUT-IN, data excludes the sale of overseas corporations of Japanese companies. There are also some cases forwhich the amount has not been disclosed.)7

1.3 Changes in Acquisitions and Business Transfers (OUT-IN)◼ The number of Inbound M&A transactions, among others, Japan has generally remained flat, but theamount of Inbound M&A transactions with Japan has increased significantly since 2016, although it has
fluctuated depending on the presence or absence of large deals
Changes in Inbound M&A transactions(number and monetary amount (three-year moving average)) ＊1（cases）（in billions of yen）

80

3,500

70

3,000

60

2,500

50
2,000

40
1,500

30
1,000

20

500

10
0

0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
No. of OUT-IN

Amount of OUT-IN(Reference)Amount of IN-IN＊1 The average amount obtained by adding the amount of the previous and following years to the amount of the applicable year and dividing it by the number of threeyears (Example: the value for 2021 is the average value for 2020-2022). The trend of the amount for each year is especially difficult to grasp depending on the occurrenceof large deals, so a three-year moving average was used.
Source：Created from the RECOF M&A database (for OUT-IN, data excludes the sale of overseas corporations of Japanese companies. There are also some cases forwhich the amount has not been disclosed.)8

1.4 Changes in Capital Participation and Investment Expansion (OUT-IN)◼ The number and value of capital participation and investment expansion in Inbound M&A transactions,etc. have more than three times in the last ten-years
Changes in Capital participation and investment expansion(number and monetary amount(three-year moving average)) ＊1（cases）（in billion of yen）

200

3,000

180
2,500

160

140

2,000

120
100

1,500

80
1,000

60
40

500

20
0

0

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
No. of OUT-IN

Amount of OUT-IN(Reference)Amount of IN-IN＊1 The average amount obtained by adding the amount of the previous and following years to the amount of the applicable year and dividing it by
the number of three-years (Example: the value for 2021 is the average value for 2020-2022). The trend of the amount for each year is especiallydifficult to grasp depending on the occurrence of large deals, so a three-year moving average was used.
Source：Created from the RECOF M&A database (for OUT-IN, data excludes the sale of overseas corporations of Japanese companies. There are also some cases forwhich the amount has not been disclosed.)9

1.5 Overview of Inbound M&A transactions in Each Country◼ The number of Inbound M&A transactions (total from 2018 to 2022) (478 cases) and the ratio of value(about 0.5%) to nominal GDP (2022) in Japan compared to inbound M&A transactions in othercountries are small in both number and percentage◼ In particular, the percentage of monetary amount to nominal GDP in Japan is about 1/7th that of the
U.S. and 1/33th that of the U.K.*
Changes in Inbound M&A transactions around the world(Number and percentage of monetary amount to nominal GDP: Total from 2018 to 2022）（Amount of Inbound M&A as a percentage of nominal GDP）
20%
Singapore

18%

England16%

Nerderland

IrelandIsrael14%

Finand12%

Switzerland

Honk Kong

10%
8%
6%

Denmark
Portugal
Austria

4%

Malaysia

2%
0%

Spain

SwedenNorway Belgium
South Korea Brazil
India
PolandChina

CanadaNew ZealandFrane

Germany

500

1,000

1,500

U.S.A
Japan ... 0.51% (OUT-IN M&A $21.5 billion / Nominal GDP $4,232.1 billion)
U.S.A. ... 3.42% (OUT-IN M&A $869.3 billion / Nominal GDP $25,439.7 billion)
U.K. ... 15.97% (OUT-IN M&A $493.4 billion / Nominal GDP $3,089.1 billion)

Itary

Japan

Mexico0Australia

2,000

2,500

3,000

3,500

4,000

4,500

（cases）
5,000
7,000

Source: compiled from UNCTAD World Investment Report (number and value of OUT-IN M&A, 2018-2022) and The WORLD BANK (nominal GDP (2022))10

2. Key Points and Benefits for Collaborations and Joint Ventures
Between Japanese and Foreign Companies
2.1 Key points identified in the Collaborations and Joint Ventures
Between Japanese and Foreign Companies
2.2 Overview of Objectives and Benefits for Collaborations and Joint
Ventures Between Japanese and Foreign Companies (Summary)
2.3 Overview of Objectives and Benefits for Collaborations and Joint
Ventures Between Japanese and Foreign Companies(Actual Voices/Opinions)

p.12
p.14
p.15

11

2.1 Key points identified in the Collaborations and Joint Ventures Between
Japanese and Foreign Companies 1/2◼ The topics of interviews were organized on the key points of collaborations and joint ventures between Japanese andforeign companies in Japan as follows: ① the background of utilizing foreign capital (growth motivation and issues
perceived); ② points of contact with foreign companies; ③ implementation details for achieving results; ④ pre- and postdeal challenges confronted (including M&A, minority investment and establishment of joint venture companies); ⑤ key
factors for success; and ⑥ future growth prospects
1236Background of utilizing
foreign capital(growth motivation andissues perceived)

Points ofcontact withforeigncompanies

4

Collaboration
andJoint venture

Implementation
details forachieving results

Pre- and post-deal challenges confronted

Issue resolution
Growth5

Future growthprospects

Key factors for success① Background of utilizing foreign capital(growth motivation and issues perceived)② Points of contact with foreigncompanies③ Implementation details for achieving
results◼ The necessity of creating new businesses⚫ It is necessary to create new business models
and innovations in products and services forthe company's future growth, and to this end,
companies hope to utilize the superior producttechnologies, global sales networks, etc. of its
collaboration or joint venture partner◼ The necessity of improving the management ofexisting businesses⚫ Companies hope to leverage the operational
reform methods, sales know-how, and excellent
product technologies of their collaboration or
joint venture partners in order to make efforts
to expand existing businesses to overseas,
gain market share, and enhance productfunctionality⚫ Furthermore, utilizing business DX and IT
solutions for internal work are also
considered◼ The necessity of training and strengthening
human resources and securing highly skilled
professionals⚫ Companies hope to leverage the training
programs and HR system know-how of theircollaboration or joint venture partners, and theglobal professionals, etc. of joint venture
partners in order to make efforts to train andsecure specialized personnel and IT
personnel◼ Japanese companies approaching foreignbusiness partners for investment (existing
business partners)⚫ From among the existing business partners,
companies that will be mutually complementary(create synergies) in areas of collaborations andjoint ventures are identified.
⚫ It is also important for the company to clarify
its own strengths (core technologies, etc.)
when negotiating with global companies’
headquarters◼ Japanese companies propose for investment⚫ Japanese companies approach foreign companies
in the industrial sectors of countries that are
more advanced and developed than theJapanese market, and appeal to them byhighlighting their company's business vision,
the future prospects of the Japanese market,
etc. In general there are various ways of doing
this, such as attending conferences held byindustry groups, investment banks,
consulting firms, etc., tapping the networksof stakeholders, using matching platforms,
and utilizing experts such as FAs◼ Foreign companies propose for investment⚫ there seems to be some foreign companies thatare searching for Japanese companies on a daily
basis to approach them for, e.g., investment⚫ When considering a collaboration or joint venturewith the other company, it is important for bothparties to fully understand each other’s
objective, potential benefits, etc.

◼ Utilization of product/service-related
technology, marketing know-how, etc.
⚫ Obtaining product/service technologies andmarketing know-how such as branding froma more advanced global market can enable
the creation of new businesses, strengthen
existing businesses, and strengthen sales
capacity in the global market◼ Incorporating business DX and know-how ofIT-based operational reforms⚫ Improve productivity and profitability byintroducing global standards for thedevelopment and operation of IT systems
and the know-how required to realize datadriven management⚫ In addition, implementing quality control andbusiness management that meets global
standards will lead to stronger corporate
governance and greater efficiency◼ Reform of HR and training systems⚫ While collaborating or operating a joint
venture with a foreign company, implement
HR evaluations, language study, and training
programs such as advanced technology
acquisition based on global standards⚫ It is also important to accumulate collaboration
partner’s and joint venture’s know-hows andleverage these for further investment andtransactions in the future12

2.1 Key points identified in the Collaborations and Joint Ventures Between
Japanese and Foreign Companies 2/2
1

Background of utilizing
foreign capital(growth motivation andissues perceived)

2

4

Points ofcontact withforeigncompanies

3
Collaboration
andJoint venture

6
Implementation
details forachieving results

Pre- and post-deal challenges confronted

Issue resolution
Growth5

Future growthprospects

Key factors for success④Pre- and post-deal challenges confronted⑤ Key factors for success⑥ Future growth prospects◼ Internal explanations on collaboration and joint
venture⚫ There is a certain amount of disagreement or
opposition within companies regarding
collaboration or joint venture with foreigncompanies. In addition to explaining the future
prospects of their own businesses andproducts, and the advantages (benefits) of thetechnologies, some companies also engage
experts as needed and carry out thorough risk
checks primarily for compliance andintellectual property rights of the foreigncompany before providing a careful internal
explanation◼ Explanations in response to uncertainty anddoubts expressed by employees⚫ The acceptance of foreign capital causes some
employees to feel confused and consider leaving
the company. Some companies implemented
countermeasures such as detailed explanationsof the company’s future growth vision and thesignificance of the reforms through individualinterviews, transitioning gradually, andoffering retention bonuses◼ Addressing differences in corporate culture andbusiness practices⚫ In addition to the language difference, the timedifference with the overseas headquarters, anddifferences in assumptions among engineers, there
were also business challenges such as a lack offunds, delays in the arrival of equipment, anddevelopment delays⚫ In spite of these difficulties, some companies
were able to build trustful relationships by
ensuring transparency and sharing their views.
In the case of joint ventures, there was a casewhere prioritizing the interests of the joint venture
were more valued rather than that of the parent
companies◼ Setting and aligning management targets andcollaboration objectives (primarily for majority
investment)⚫ A key factor leading to smooth decision-making
and business execution requires whether the twocompanies had compatible business policies,
philosophies, and management targets◼ Continuation of a win-win relationship⚫ In order for both companies to enjoy the benefitsof collaboration, it is necessary that they provide
each other with the resources which the othermay lack◼ Clarification of roles and continuous business
improvement(primarily for joint ventures)⚫ It is necessary to clearly establish the roles of
the joint venture company and then discuss
measures for continuous business
improvement. In addition, upon establishing a
joint venture company, it is also important toconsider standards for decisions and decisionsmaking process in the event of a deadlock(including the investment ratio, clarification ofareas of collaboration, internal responsibilities andauthority, etc.).
⚫ In order to prevent conflicts of interest between
the Japanese and foreign companies that areinvesting in the joint venture together, efforts
need to be made to promote close
communication and personnel exchanges, suchas by mutually dispatching directors to the othercompany and holding frequent meetings both inperson and virtually◼ Penetration of the domestic market⚫ Companies aim to expand their share of thedomestic market by improving and expanding
the scale of products and services in their
existing businesses and by promoting thedevelopment of new businesses⚫ Companies continue to communicate closelywith their collaboration and joint venture
partners and further deepen relationships◼ Development of overseas markets⚫ Companies aim to provide their own products
and services (including based on productimprovements) to overseas markets by
utilizing the sales channels andproduct/service technologies of foreigncompanies⚫ Based on the cooperation of collaboration
partners and joint venture partners in areas
such as local market research, companies
smoothly adapt their products and services tooverseas markets◼ Development and utilization of high-level andDX human resources⚫ Companies promote the utilization of data
and IT technologies for new and existing
businesses by sufficiently developing a
training program for DX human resources⚫ Also, companies expand business scale andaim to expand overseas business byimplementing development efforts for
specialized personnel and global
professionals in the applicable industries
and fields based on the cooperation ofcollaboration partners and joint venture
partners132.2 Overview of Objectives and Benefits for Collaborations and Joint
Ventures Between Japanese and Foreign Companies (Summary)◼ The main benefits of collaborations and joint ventures between Japanese and foreign companies canbe broadly classified into management, operations, and employees, which have been observed topertain to common benefits under the multiple cases

Management

Creating new business models and innovations

Operations

Improvement of sales and marketing capabilities◼ Achieved creating new products, new services, and innovations
through collaborations and joint ventures with foreign companies thatpossess unique products, services, technologies, and business models
that Japanese companies do not have.
◼ Contributed to the development of new business fields andtechnologies that were previously unreachable and the expansion ofbusiness portfolios through the creation of such new businesses andinnovations◼ Contributed to the expansion of sales channels for products andservices (including overseas expansion) by utilizing the sales channels
and marketing methods of the foreign partners in collaborations or
joint ventures.
◼ Also, strengthened the brand power of the products and services of
the Japanese companies to enhance their bargaining powers against
their business partners and their competitiveness.

Employees

Human Resource Development and Retention◼ Developed and strengthened global human resources by promoting
exchanges with global human resources from foreign companies andcreating opportunities to gain business experience overseas.
◼ In addition, promoted the development of human resources who willhandle digital transformation of business model by introducing the IT
system utilization know-hows of the foreign partners in collaborations
or joint ventures.

Strengthening management bases◼ Achieved advanced business management by incorporating advanced
know-hows and knowledges from foreign companies with respect tobusiness management methods (management governance) such as
KPI management and per-capita sales setting.
◼ Realized business reforms by introducing business know-hows andknowledges of system development and operation optimization held by
the foreign partners in collaborations or joint ventures

Improvement of production and development
capacity and productivity◼ Achieved stable procurement of materials and expansion of businessscale through collaborations and joint ventures with foreign companies
that are expanding their business globally.
◼ Also, improved the quality of the Japanese companies’ own products
and achieved lower production costs by incorporating the bestpractices of foreign companies with respect to manufacturing andquality control methods

Improvement of working environments andconditions◼ Improved employees’ motivation and performance by introducing afair and transparent personnel evaluation system (including acompensation system that reflects employees’ performance).
◼ Also enhanced employees’ motivation through participation in overseas
projects and interactions with foreign human resources.

14

Operations

Management

2.3 Overview of Objectives and Benefits for Collaborations and Joint Ventures
Between Japanese and Foreign Companies (Actual Voices/Opinions)
Creating new business models and innovations

Strengthening management bases◼ The extensive customer base of MUFG in the Japanese market andthe high-quality and high-level expertise provided by US Morgan
Stanley’s products and services were mutually complementary,
making it possible to provide an enhanced level of investmentbanking business that can respond to the financial needs ofincreasingly diversified customers (Mitsubishi UFJ Morgan Stanley
Securities / Securities / Joint venture)◼ Tokyo Gas utilized the digital platform and operations-related knowhow of Octopus Energy in order to further expand its business, forexample expanding its service area outside the Tokyo metropolitan area.
The joint venture launched a new brand and achieved a nationwide rollout of electricity sales focused on renewable energy (TG Octopus
Energy / Power / Joint venture)◼ The company established joint goals with Google pertaining to technology
support and business support (joint business plan), and the KPIs are
discussed and reviewed annually (PLAID / Software & information /Minority investment)◼ Since the time of acceptance of the minority investment, the company has
been able to receive the knowledge possessed by Randstad, including
the sales management necessary for the temporary/part-time staffing
business (Randstad / Services / Majority investment)

Improvement of sales and marketing capabilities

Improvement of production and development
capacity and productivity◼ The L'Oréal Group established an overseas expansion team in
preparation for rolling out the TAKAMI brand to the Chinese market.
Working with L'Oréal China made a smooth business roll-out in China
possible, including responding to verifications and regulations that are
unique to the Chinese cosmetics market (L'Oréal (TAKAMI) / Chemicals /Majority investment)◼ At the time of acceptance of investment from Salesforce, the introductionof customers from Salesforce through the collaboration was
extremely beneficial (UPWARD / Software & information / Minority
investment)◼ The company entered into a partnership for the purpose of providing funds
needed for marketing with a view to establishing a new brand. The
objectives for colloboration also include procurement, sales,
marketing, and branding support in the form of venture capital from
Diageo (KOMASA JYOZO / Food products / Joint venture)

Employees

Human Resource Development and Retention◼ The joint venture company introduced IBM’s professional
certification, defining the skills required for project managers andtechnical specialists. The training has started from 2022 with the aim of all
employees being certified by the end of 2024 (I&J Digital Innovation /Software & Information / Joint venture)◼ In addition to support for KDDI’s data analysis project, Accenture has
supported ARISE analytics with the planning of ‘KDDI DX University’ whichdevelops KDDI’s DX human resources, and contributed to some of thelectures. Through such initiatives, efforts were accelerated related todata utilization at KDDI (ARISE analytics / Software & Information / Joint
venture)◼ By acquiring VSC（voltage source converter) HVDC technology (highvoltage direct current transmission technology), which has the world's
best track record of implementation, Hitachi became able to utilize cuttingedge technology and abundant HVDC implementation know-how tocontinue to lead the way in decarbonization in Japan and around the world(Hitachi Energy / Electric Power and Gas / Joint Venture)◼ After receiving support from Google, the company leveraged the AI
technology on the Google Cloud Platform to improve the functionalityof their own products, and the company most recently successfullylaunched a service for the optimization of ad delivery (PLAID /Software & Information / Minority investment)

Improvement of working environments andconditions◼ The company adopted Randstad’s HR evaluation process, under which
employees discuss with their supervisors about their career plan for
utilizing the employees’ potential. A nine quadrant evaluation looking at
potential (three stages) and performance (three stages) is conductedannually, followed by an interview (Randstad / Service / Majority
investment)◼ In the investment banking business, the joint venture company referred toMorgan Stanley’s HR system to make improvements to the HR
evaluation system including 360-degree evaluations and resultsbased evaluations (Mitsubishi UFJ Morgan Stanley Securities / Securities /Joint venture)15

3．Individual Cases
3.1 Investment Patterns in this Research
3.2 List of Collaboration and Joint Venture Case Studies
3.3 Index: Search for Cases by Benefits
3.4 Composition of Collaboration and Joint Venture Case Studies
3.5 Executive Summary
3.6 Detailed Case Studies
No.

Pattern

1 majority
2 investment
3 minority
4 investment
5
6
7
8 Joint
9 investment

1011Japanese Company (Investee)
Fuji Staff Group
BRANDLIFT CO.,Ltd（Parent company of TAKAMI co., Ltd）
UPWARD, Inc.
PLAID, Inc.
ARISE analytics, inc.
KOMASA KANOSUKE DISTILLERY CO.,LTD
JTB System Solution（Currently I&J Digital Innovation）
TG Octopus Energy Co., Ltd.
BASF TODA Battery Materials LLC.
Hitachi ABB HVDC Technologies Ltd. (currently Hitachi Energy
Japan Ltd.)
Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.

p.17
p.18
p.19
p.20
p.21
p.33
Page

p.22,34-36
p.23,37-39
p.24,40-42
p.25,43-45
p.26,46-48
p.27,49-51
p.28,52-54
p.29,55-57
p.30,58

p.31,59-61
p.32,62-64

16

3.1 Investment Patterns in this Research◼ In this research, cases were organized into three patterns: Pattern A (acceptance of majority investment in the Investee Company),
Pattern B (acceptance of minority investment in the Investee Company), and Pattern C (joint investment (turning a company into a
joint venture)).*Definition /schemePattern◼ In general, in the case of minority investment or joint venture, more independence of management and more autonomy of thecompany are preserved as compared to majority investment, which acquires the control of management. On the other hand, as
compared to business alliances based on a contract alone where no capital is involved, these above methods make it easier tostrengthen relations with foreign companies and obtain commitment there from, which can be expected to lead to the acquisition ofmanagement/technical know-hows and the creation of synergy effects

Pattern A

Pattern B

Pattern C

Acceptance of majority
investmentin the Investee Company

Acceptance of minority
investmentin the Investee Company

Joint investment (turning a company into a joint venture)◼ The pattern in which a Japanesecompany is the investee company
and accepts investment from aforeign company (sale/investment
ratio of over 50%)

◼ The pattern in which a Japanesecompany is the investee company
and accepts investment from aforeign company (investment ratioof 50% or less)◼ The pattern in which a Japanese company accepts a foreign company’s
investment in a subsidiary. Another typical example is when a Japanesecompany and a foreign company jointly invest in another company andestablish a new joint venture company. Such cases are also included in thispattern.

Foreigncompany

Othershareholders

Over 50%

Examples(note)

Characteristics
and trends

Japanesecompany

Foreigncompany

Othershareholders

Foreigncompany

Japanesecompany

Foreigncompany

Japanesecompany

50% or lessJapanesecompany

Existing subsidiary ofJapanese company

Newly establish joint
venture company◼ Since the decision-making
authority will be held by theforeign company, in many cases
the foreign company will havemanagement authority andautonomy, and will drive
management◼Since the decision-making authority
will be held by the Japanesecompany, in many cases theJapanese company havemanagement authority andautonomy and drive management◼The foreign company wlil holdinfluence over management inaccordance with its investment
ratio as a shareholder◼ In many cases the Japanese company can operate to strengthen its
business by gaining know-hows from the foreign company withina designated scope of business◼ This pattern can transition into various forms such as capitalincrease by the foreign company (staged investment) or dissolution
in the event that mutual goals have been achieved◼ Also, in the case that a joint venture company is newly established,
the joint venture company will be required to design theorganization including the management structure and HR system,etc.

• Fuji Staff x Randstad• TAKAMI (Parent company:
BRANDLIFT) x L'Oréal• UPWARD x Salesforce• PLAID x Google• KDDI x Accenture Japan• KOMASA JYOZO x Diageo• JTB x IBM Japan• Tokyo Gas x Octopus Energy• TODA KOGYO x BASF
• Hitachi x ABB• Mitsubishi UFJ Financial Groupx Morgan Stanley* In this research, cases are categorized into the above three patterns for analytical convenience, but in general, collaborations (also include business alliances) (e.g.,alliance agreements) in addition to transactions involving investment(Note) Company names are abbreviated (“Co., Ltd.” and such are omitted)

173.2 List of Collaboration and Joint Venture Case Studies
No.

Pat
ter
n

①

A

②

Japanese Company (Investee)

Name(Investee)

Foreign Company (Investor)

Shareholding Ratio

ParentCompany

Industry

Location

Fuji Staff GroupーServiceTokyo

A

BRANDLIFT CO.,Ltd（Parent company of
TAKAMI co., Ltd）

ーChemicals

Tokyo

✓

L'Oréal（L‘Oréal S.A.）③

B

UPWARD, Inc.

ーSoft andInformation

Tokyo

✓

Salesforce.com, inc.
United States（Currently Salesforce,of America
Inc.）

―

④

B

PLAID, Inc.

ーSoft andInformation

Tokyo

✓

Google International
LLC

United Statesof America

―

⑤

C

ARISE analytics, inc.

KDDI
CORPORATIONSoft andInformationTokyo

Accenture Japan Ltd

United Statesof America

KDDI 85％
15％⑥

C

KOMASA KANOSUKEDISTILLERY CO.,LTD

KOMASA JYOZO
CO., LTD.

Foods

Kagoshima

Diageo plc

UnitedKingdom―⑦

C

JTB System Solution（Currently I&J Digital
Innovation）

JTB Corp.

Soft andInformationTokyo

IBM Japan

United Statesof America

IBM Japan 65%
JTB 35%⑧CTG Octopus Energy Co., Ltd.

Tokyo Gas Co.,
Ltd.

Other retailTokyo

Octopus Energy Group
LimitedUnitedKingdom

Tokyo Gas 70%
Octopus Energy
30%

⑨

C

BASF TODA Battery
Materials LLC.

TODA KOGYO
CORP.

Chemicals

Yamaguchi

BASF SE（BASF JapanLtd.）

Germany

TODA KOGYO 34％
BASF 66％

Nationality

Randstad K.K.

Netherlands（At first）10％（Present）100%

France100%✓（At first）
Hitachi 51％ ABB 49％（Present）Hitachi 100％
Mitsubishi UFJ Financial
Mitsubishi UFJ
United States
Mitsubishi UFJ Morgan
Morgan StanleyGroup 60％⑪
C
Financial Group,
securities
Tokyoof America
Stanley Securities Co., Ltd.
Inc.
Morgan Stanley 40％*Corporate size at the time of the investment, as categorized subject to the definitions under the Small and Medium-sized Enterprise Basic Act; provided however, thetreatment thereof may depend on the types and the content of business or other corporate situation of an individual case
Pattern A：Acceptance of majority investment in the Investee Company
Pattern B：Acceptance of minority investment in the Investee Company
Pattern C：Joint Investment（turning a company into a joint venture）⑩

C

Hitachi ABB HVDC
Technologies Ltd. (currently Hitachi, Ltd.
Hitachi Energy Japan Ltd.)

Name

SME*

Electric Powerand GasTokyo

ABB Ltd

Switzerland18

3.3 Index：Search for Cases by Benefits
Major Cases

Manegement

UPWARD×Salesforce（p.24）

Tokyo Gas×Octopus Energy（p.29）

Hitachi×ABB（p.31）

Mitsubishi UFJ Financial Group xMorgan Stanley （p.32）

Strengthening management
bases

PLAID×Google（p.25）

KDDI x Accenture Japan（p.26）

KOMASA JYOZO x Diageo （p.27）

JTB×IBM Japan（p.28）

Improvement of sales andmarketing capabilities

TAKAMI x L'Oréal（p.23）

UPWARD×Salesforce （p.24）

Hitachi×ABB（p.31）

Mitsubishi UFJ Financial Group xMorgan Stanley （p.32）

Fuji Staff x Randstad（p.22）

TAKAMI x L'Oréal （p.23）

KOMASA JYOZO x Diageo（p.27）

Hitachi×ABB（p.31）

KDDI x Accenture Japan（p.26）

KOMASA JYOZO x Diageo （p.27）

JTB×IBM Japan（p.28）

Tokyo Gas×Octopus Energy （p.29）

Fuji Staff x Randstad（p.22）

PLAID×Google（p.25）

KDDI x Accenture Japan（p.26）

Mitsubishi UFJ Financial Group xMorgan Stanley （p.32）

Employees

Creating new businessmodels and innovations

Operations

Benefits

Improvement of production
and development capacityand productivity
Human Resource
Development and Retention
Improvement of working
environments andconditions

19

3.4 Composition of Collaboration and Joint Venture Case Studies◼ Pages of individual cases are consisted of the following eight items and four pages. Page 1 is a general overview (executive
summary), page 2 and onwards are those covering details, such as pre- and post-deal circumstances, key points for
successful collaborations, company’s actual voices, and the visions for the futureNo.

Items for casestudy
introduction

Page

Content•

1

Overview

2

Issues3

Objectives

4

Process ofcollaboration

5

Results

6

Key points for
successful
collaboration

7

Areas devised preand post-deal

8

Future vision, etc.

Includes information outlining the deal, such as details of collaboration,
investment ratio, composition of the board of directors of the investee
company, details of each company’s support, investor company name,investee company name, business description, sales figures, number of
employees, scale of the companies, industry, and investment pattern

Page 1
Generaloverview

Page 2
Details 1

Includes information on the state of the business environments
surrounding the foreign and Japanese companies, as well as the
management challenges faced by each company〇•

Includes information such as how the Japanese company came to be incontact with the foreign company, and the purpose or deciding factors
in selecting the foreign company to collaborate with〇•

Includes information on the process, such as how the senior
management and on-site employees of the foreign and Japanesecompanies made efforts to communicate〇•

Includes information such as changes in sales figures, no. of
employees, etc., innovation, enhancements to management,
improvements in employee engagement, etc.

〇•

Includes key management and business factors that led to collaboration
results, and key points regarding the distribution of responsibilities
between the foreign and Japanese companies and the utilization of
know-how, etc.
Includes the points of difficulty and cautionary points from the time ofinitial discussions on collaboration until now and the areas thecompanies devised leading to a successful collaboration, and reflecting
in retrospect points
Includes information on the investee company’s attractive points, suchas its mission, visions and products/services, etc., and outlook on thegrowth of collaboration with the foreign company•

Page 4
Details 3〇••

Page 3
Details 2

〇
〇
〇
20

3.5 Executive Summary21

① Sale of Fuji Staff Group to Randstad K.K.

Majority investment(Fuji Staff x Randstad, 2010)

Service

Fuji Staff Group, which operated temporary/part-time staffing businesses, received staged investment from Randstad Japan Corporation(the Japanese subsidiary of the Randstad Group at that time), which had operated general HR services businesses since 2008, and thesale to Randstad was consummated in 2010. In 2011, the corporate name was changed to Randstad K.K.(hereinafter “Ranstad”), andsteeped in the corporate culture and know-how of Randstad. The company utilized the customer networks of both companies to diversify
its business portfolio, achieving an increase in sales and the number of employees

Post-Deal

Pre-Deal① Issues◼

◼

Fuji Staff had rolled out atemporary/part-time staffing businessprimarily in the Kanto region, but it was
relatively unknown compared to thebig players in the HR staffing
industry. So the company had
identified business expansion as oneof its challenges
Randstad sensed the future prospects
for Japan’s recruiting market, therefore
entered the Japanese market, but it feltthat there was a limit to the growth
it could achieve on its own② Objectives③ Process④ Outcome◼ From 2008, Randstad made aminority investment in Fuji Staff, andit was planning to strengthen thepartnership toward further
growth. Randstad decided toacquire Fuji Staff in 2010
◼ Both of Fuji Staff and Randstad aimed
to create synergies by utilizing Fuji
Staff’s network of customers in theJapanese market, along withRandstad’s global recognition andbusiness know-how◼ Prior to the merger, a project teamwas formed to reconcile opinions
toward the collaboration withRandstad and to discuss thecreation of synergies◼ A smooth business consolidation wasachieved through the gradualinstillation in Fuji Staff employeesof Randstad’s corporate culture,
Key Goal Indicators (KGI), andsales management know-how◼ By integrating the two companies’
resources, sales and the number of
employees roughly doubled in the ten
years following the merger. The
company also became possible tosecure global skilled employees◼ Further, the company became able tocreate new businesses such as a jobchange service for professionals andpart-time service engineers,
achieving business portfolio
expansion and diversification ofrisks

Details of Collaboration, Investment Ratio,
and Board of Directors Composition◼ The collaboration involved the provision of temporary/part-time staffing andrecruitment services in Japan◼ Randstad acquired a 10% share in Fuji Staff in 2008, and later increased its
investment ratio to 20.4%. It made a tender offer in 2010, and the businesses
were integrated in 2011
◼ The composition of the board of directors in 2010 at the time of the acquisition
was 5 members from Fuji Staff and 2 from Randstad. Fuji Staff’s management
team remained as internal directors, while outside directors were accepted fromthe Randstad headquarters

Resources provided(e.g., support)

Fuji Staff• Network in Japan• Existing operations• Human Resources

100% acquisition
Board of Directors
Composition

5 Fuji Staff members

Resources provided(e.g., support)• A corporate brand in the
global market• Know-how of humanresource services andprofessional/talent
network
2 Randstad members

Point
◼
➢

◼
➢

◼
➢

The deal started from a minority investment, and the company was able toabsorb excellent know-how from Randstad
After Randstad’s investment made in 2008 in Fuji Staff, Randstad’s sales
management, KGI management methodology, and other excellent knowhow were absorbed by Fuji Staff, confirming the benefits of the capital
partnership. Randstad was able to reduce resistance for the sale in order torealize the business consolidation
Initiatives were executed to drive the merger at the operations level
A project team was formed to generate synergies and transfer know-how
between Randstad and Fuji Staff. By first digesting the business know-how
possessed by Randstad at the project team and then conveying it to the front lines,
Fuji Staff’s business was able to proceed smoothly even after the sale to Randstad
Consideration for employee’s concerns about the acquisition and businessconsolidation
When the company was acquired in 2010, employee briefings were held to strongly
emphasize the necessity of the acquisition and that their working conditions would
not change after the merger. Retention bonuses were also offered to prevent theoutflow of human resources

Outline of the deal
<Date of announcement> August 2010 <Scheme> Acquisition by Randstad of Fuji Staff <Transaction amount (investment amount)> Undisclosed<Japanese company> Fuji Staff, Inc. (Tokyo) <Business> Temporary/part-time staffing <Sales> Undisclosed <No. of employees> Undisclosed <Capital> Undisclosed <Category> Large company<Investor＞ (foreign company) Randstad K.K. (HQ: Randstad N.V.: the Netherlands) <Business> General HR services

22

② Sale of TAKAMI co., Ltd to L‘Oréal S.A

Majority investment(TAKAMI (Parent company: BRANDLIFT) x L'Oréal, 2020)

ChemicalAfter being acquired by L'Oréal, the skincare brand TAKAMI implemented a global sales strategy and strengthened its brandpower, which resulted in increased sales. Through extensive dialogues between the two companies during the merger
process, they have aimed to promote the overseas expansion of TAKAMI products, while maintaining the strengths of the
TAKAMI sales model and brandPost-Deal

Pre-Deal① Issues② Objectives③ Process④ Outcome◼ TAKAMI was aiming to increase its
presence in the cosmetics market,
that was led by major companies,
but the company realized that there
was a limit to how much growth it
could achieve on its own◼ L'Oreal was impressed by TAKAMI's
Direct to Customer (D2C) model (amail-order model) and approached
the president of TAKAMI directly◼ After the acquisition, TAKAMI's
former president remained in his
position, and TAKAMI's members
and the new members who joinedfrom L'Oréal jointly envisioned thefuture of the brand◼ Sales channels have expanded,
including setting up pop-up stores indepartment stores, which would havebeen difficult for TAKAMI to do alone◼ With view to expanding into theChinese market, L'Oreal was
scouting Japanese cosmetics brands
with the aim at strengthening its
Asian brands◼ TAKAMI was aiming to expand in
the luxury cosmetics business in
the Japanese market, and while itreceived acquisition offers from othercompanies, it ended up accepting
L'Oréal’s proposal

Details of Collaboration, Investment Ratio,
and Board of Directors Composition◼ Negotiations began in 2019. L'Oréal announced a 100% acquisition of TAKAMI co.,Ltd. in December 2020, and the acquisition was completed in February 2021
◼ Following the acquisition, the production and sale of TAKAMI brand skincare
products is handled by TAKAMI business dept.of L'Oréal Luxury Business
Headquarters at Nihon L'Oréal

Resources provided(e.g., support)

Resources provided(e.g., support)• TAKAMI brand• Know-how of D2C model• Sales channels• Funds

100% acquisition• Overseas expansion
support◼ By joining L'Oréal, TAKAMI members'
emphasis on improving customer
value became apparent◼ L'Oréal's corporate division took thelead in consciously creating
opportunities for human resources ◼ TAKAMI (division) sales havequadrupled as compared to before
from both companies to interact
the M&A

Point◼ L'Oréal Group’s commitment in growing the TAKAMI brand➢ Upper management at L’Oréal headquarters presented a consistent policy of
not disregarding TAKAMI as a startup company, and leveraging TAKAMI’s
advantages in the brand management◼ A brand strategy formulated consistent with TAKAMI’s origins➢ TAKAMI's business was placed under the umbrella of a department (the Luxury
Business Headquarters) that emphasized two-way communication with customers,
and a strategy that was consistent with TAKAMI's origins was implemented
even after the acquisition◼ Close mutual cooperation to expand the TAKAMI brand globally➢ By becoming a division of L'Oréal, TAKAMI was able to fully utilize the businessresources of L'Oréal to support its overseas expansion, including
strengthening its brand and establishing a local research teamOutline of the deal
<Date of announcement> December 2020 <Scheme> Acquisition (L'Oréal 100%) <Transaction amount (investment amount)> Undisclosed<Japanese company> BRANDLIFT CO.,Ltd (Parent company of TAKAMI co., Ltd.: Tokyo) <Business Description> Production and sale of skincare products <Sales> Undisclosed<No. of employees> Undisclosed <Capital> Undisclosed <Category> SME<Investor (foreign company)> L'Oréal S.A. (France)<Business Description> Import, production, sale, and marketing of cosmetics23

③ UPWARD, Inc. accepting a minority investment from

Minority investment

Salesforce, Inc. (UPWARD x Salesforce, 2013)

Software/information

UPWARD, Inc., which provides cloud services for managing customer contact points and activities during external marketingand door-to-door sales, is a company formed by members who share the same mission of "innovating the last mile on thefront lines." The company has received investment from Salesforce Ventures (Salesforce, Inc.'s CVC) and has expanded its
business in collaboration with Salesforce, Inc. (hereinafter "Salesforce")

Post-Deal

Pre-Deal① Issues② Objectives③ Process④ Outcome◼ UPWARD, Inc. (hereinafter“UPWARD”) had been focused oncontract development of geographic
information systems (GIS), but
anticipated a future prospect in cloudcomputing and SaaS
◼ Salesforce was looking to collaborate
with an application partner topromote the use of CRM in order toexpand its business◼ UPWARD was attracted to Salesforce’s
SaaS business and entered into abusiness alliance with Salesforce in2011. Later, in 2013, UPWARD
accepted a minority investment withthe aim at strengthening the alliance◼ Salesforce expected to strengthen
the partnership “in the field of
external marketing” by combining
UPWARD’s location information
with a customer relationshipmanagement (CRM) system◼ Upward has implemented thelatest management methods, suchas setting quantitative management
indicators (THE MODEL) for SaaS
business advocated by Salesforce,
thereby formulating a plan

◼ As UPWARD’s business expanded,it hired more employees and its
rate of obtaining business ties
gradually increased.
◼ By transitioning to a businessmodel utilizing SaaS based on thepartnership with Salesforce,
UPWARD has become able to improve
product updates and boost customer’s
product proficiency even after
transaction

Details of Collaboration, Investment Ratio,
and Board of Directors Composition

Point◼ After entering into a business alliance with Salesforce in 2011, in 2013 UPWARD
received investment of 30 million yen from Salesforce Ventures (minority
investment, investment ratio undisclosed) and began a capital alliance partnership◼ The company was able to clarify its own strengths by receiving investment
from a global company➢ Providing the location information acquisition function has led to increased useof CRM provided by Salesforce, and marketing this has been highly evaluated by
Salesforce in the Japanese market◼ Collaboration was mainly sales related➢ The collaboration was strengthened by holding regular meetings with Salesforce,
briefing Salesforce employees throughout Japan on the UPWARD product,
and holding seminars, etc.
➢ In regard to future overseas business development, since Salesforce products
are already proliferating in Singapore and Salesforce has considered thescale of the market in Southeast Asia, an office has been established in
Singapore◼ The collaboration mainly involved the development and sale of SaaS linked to the
management system of Salesforce’s customers◼ There is no dispatch of director(s) from Salesforce in UPWARD. UPWARD takes theinitiative in the management of the company

Resources provided(e.g., support)

UPWARD• Provides CRM application
leveraging location
information

Salesforce

A few %• Funds• Sales functions

Board of Directors
Composition
3 UPWARD members(including 1 outside director)

Resources provided(e.g., support)• Management methods* Regarding the UPWARD product: The product links to Salesforce and other CRMs (customer
relationship management systems) to expand CRM functionality. The provided functions include simple
reporting and map linkage of sales activities leveraging location information technology and mobile
technology. This product enables consistently accumulating customer contact information in the CRM,
turning it into an information asset, and realizing effective utilization. Source: UPWARD manual website

0 Salesforce members

Outline of the deal
<Date of announcement> March 2013 <Scheme> Salesforce investment in UPWARD (Investment ratio: undisclosed) <Transaction amount> 30 million yen<Japanese company> UPWARD, Inc. (Tokyo) <Business Description> Development and provision of UPWARD. a sales engagement service “UPWARD”<Sales> Undisclosed <No. of employees> 100 (as of May 2023)<Capital> 100 million yen <Category> SME <Investor (foreign company)> Salesforce, Inc. <Business Description> Provision of cloud applications and cloud platforms

24④ PLAID, Inc. accepting a minority investment from

Minority investment

Google International LLC(PLAID x Google, 2019)

Software/information

PLAID, which provides ”KARTE”, a CX platform with strengths in customer data analysis, offers this product in a multi-cloud environment andalso uses Google's cloud computing service (Google Cloud Platform (GCP)). Through the partnership with Google, which was triggered by theinvestment, PLAID has leveraged Google’s technological capabilities and global networks. The company aims to provide more value to customers
and promote customer development by enhancing the analysis functions of its products and consulting services, and to expand its businessoverseas in the future

Post-Deal

Pre-Deal①Issues②Objectives③Process④Outcome◼ PLAID planned to further enhance◼ Google considered investing in◼ On the technical side, PLAID◼ With sales cooperation and technicalthe functionality of its products
and cultivate customers for its
business growth, including the useof AI technology that is not available
in Japan◼ Google planned to expand theJapanese cloud market andsupported the Japanese startup
ecosystem through collaboration with
GCP users in Japan

PLAID, which had developed
unique products on GCP◼ Google provided PLAID with AI andother technologies, and PLAID
started collaborations on GCP tofurther enhance productfunctionality and customer
development

Details of Collaboration, Investment Ratio,
and Board of Directors Composition

discussed with Google regarding thedevelopment and implementationof technology utilizing Google
products◼ On the sales side, PLAID discussedwith Google regarding Google LLC’sand Google Cloud Japan LLC’s sales
cooperation with respect to each of
PLAID's respective solutions

support from Google, [KARTE]* wasenhanced, new services weredeveloped, and customer
development was promoted.
These contributed to an increase insales◼ Also, PLAID collaborated with Google
in consulting services to solve
management issues such as businessdevelopment and AI technology
utilization for client companies

Point◼ Collaboration has included technical development and customer development of◼ Providing products that are difficult for other companies to imitate◼ In 2019, Google invested in PLAID and began collaborations on technology anddevelop, such as real-time analysis technology for user data, and to provide
products whose technologies were difficult to imitate, in order to berecognized by large global companies as a partner for investment and collaboration◼ Setting goals and managing progress to create synergies in collaboration

PLAID's product offerings

sales (investment ratio has been less than 5%)◼ Google has not sent any director to PLAID, and PLAID has continued to manage
the company independently⮚ Important to maintain core technologies that other companies cannot⮚ PLAID and Google are in close communication with each other in terms of bothResources
provided• GCP utilization knowhow

Undisclosed

technology and business in order to promote collaboration• Funds• AI and othertechnologies• Solutions on GCP
Board of Directors
Composition
6 PLAID members

Resources
provided• Customer contact points• Global network
0 Google members*KARTE: A CX (customer experience) platform developed and provided by PLAID. It isstrong in customer data analysis and visualizes the real-time behavior of people using
websites and applications. PLAID is rolling out a variety of products based on customer
data analyzed by KARTE to improve the customer experience at all points of contact.

Outline of the deal
<Date of announcement> November 2019 <Scheme> Issuance of preferred shares (Investment ratio: undisclosed) <Transaction amount> Undisclosed <Japanese company> PLAID, Inc. (Tokyo)<Business Description> Development and provision of SaaS such as KARTE, a CX platform, and DX support for companies organizations, and municipalities through professional services, <Sales> 8.6 billion yen (FY ended September 2023)<No. of employees> 341 (as of December 31, 2023)<Capital> 2.9 billion yen <Category> SME (at time of investment) <Investor (foreign company)> Google International LLC <Business Description> Development and provision of services such as search engines, online advertising and cloudcomputing25

⑤ Establishment of ARISE analytics, inc.

Joint venture
Software/information(KDDI x Accenture, 2017)KDDI CORPORATION established a joint venture with Accenture with the aim at using big data to improve services and create
new data businesses, based on the mindset of "buying time" rather than relying on its own resources. This joint venture
leverages Accenture’s global track record, know-how, and extensive cutting-edge knowledge to realize data utilization forKDDI Group’s DX human resources development and internal businesses

Post-Deal

Pre-Deal① Issues② Objectives③ Process◼ Although KDDI had possessedcustomer data (big data) from its
various communication and noncommunication businesses, it faced
challenges in utilizing the data andsecuring the necessary
professionals to further improvethe customer experience◼ KDDI had been receiving support fordata utilization for some time, and it
was considering collaborating withAccenture, which had advanced
knowledge in the data analysis
field◼ A representative director was selected ◼ Through ARISE analytics’ efforts, datautilization know-how wasfrom KDDI and a director-and-CSO*
accumulated internally at KDDI,was selected from Accenture
proliferating the utilization of data(*Chief Science Officer)
even for its existing services such
◼ ARISE analytics was expected toas marketing
serve the role of promoting data◼
The number of employees at ARISE
utilization throughout KDDI, andanalytics grew from around 50 to
ARISE analytics (inside the KDDIapprox. 500 (includingGroup) accumulated Accenture’s
temporary/part-time staff)
know-how◼ KDDI and Accenture establish a joint
venture for the purpose ofoutsourcing the analysis of dataobtained through KDDI’s various
businesses④ Outcome

Details of Collaboration, Investment Ratio,
and Board of Directors Composition

Point◼ ARISE analytics was established on February 27, 2017 thriving on a team that was
conducting analysis of smartphone services at KDDI◼ The management team has positioned the joint venture (ARISE analytics)
as responsible for promoting data utilization throughout the KDDI Group asa whole◼ The investment ratio has been KDDI 85% and Accenture 15%◼ The collaboration involved supporting data-driven management that used data
held by KDDI and creating new businesses that leveraged data

➢ The KDDI management team has positioned ARISE analytics as responsible forpromoting data utilization throughout the KDDI Group as a whole. As aresult, ARISE analytics had not simply become responsible for the KDDI Group's
data utilization operations, but the know-how and culture of data utilization
were spread throughout the KDDI Group via ARISE analytics

Resources provided(e.g., support)

Resources provided(e.g., support)◼ ARISE analytics has not been only involved in KDDI Group's data utilization
operations, but also in the KDDI Group's DX human resources development• Data analysis humanresources➢ In order to transfer Accenture's data utilization know-how to KDDI, ARISE
analytics has become responsible not only for data utilization but also for thedevelopment of DX human resources within KDDI•

Human Resources•

Data analysis
operations

85%

15%

• Data analysis know-how
Board of Directors
Composition

4 KDDI members

1 Accenture member

Outline of the deal
<Date of announcement> March 2017 <Scheme> Joint venture company between KDDI and Accenture (KDDI 85%, Accenture 15%) <Transaction amount (investment amount)> 30 million yen<Japanese company> KDDI CORPORATION (Tokyo) <Business Description> Telecommunications <Sales> 5.7 trillion yen (consolidated) <No. of employees> 49,659 <Capital> 141.9 billion yen <Category> Large company<Investor (foreign company)> Accenture Japan Ltd <Business> Provision of broad services and solutions across five areas: “Strategy & Consulting”, “Technology”, “Operations”, “Industry X”, and “Accenture Song”

26

⑥ KOMASA KANOSUKE DISTILLERY accepting a minority

investment from Diageo plc (KOMASA JYOZO x Diageo, 2021)

Joint venture
Food products

KOMASA JYOZO, a long-established shochu manufacturer in Kagoshima that was founded 140 years ago, accepted a minority investment from
Diageo, a manufacturer and distributor of alcoholic beverages. Leveraging the HR and organizational structure know-how and financial strengthof Diageo, in addition to the technology cultivated over many years at KOMASA JYOZO, the partnership has achieved an expansion in sales inJapan while taking on the challenge of the global whisky business. Going forward, KOMASA JYOZO aims to grow in the overseas market andsecure global professionals

Post-Deal

Pre-Deal① Issues◼

◼

While KOMASA JYOZO was aiming to
expand its shochu sales overseas,
overseas customers were not used
to the custom of drinking shochu
during a meal, and sales did not
expand as desired
In order to proliferate shochu as amore common drink around theglobe, the KOMASA brewery planned
to create a brand of Japanese
whisky, as Japanese whisky has
gained reputation in the world.
KOMASA aimed to manufacture distilled
spirits that could be accepted globally② Objectives③ Process④ Outcome◼ Two years after the company began
producing whisky, a VC from Diageo
visited the distillery and approachedthem about a collaboration, which led
to the start of negotiations◼ The two companies have begun
collaborating to provide funding andstrengthen human resources andorganizational structures tostrengthen whisky production andmarketing/sales functions◼ The company adjusted the content ofcollaboration by utilizing FAs,
lawyers, and other external
experts◼ Diageo is only involved through theparticipation of its directors on theboard of directors, and operations arein general handled by KOMASAKANOSUKE DISTILLERY◼ The company strengthened theorganizational structure by hiringglobal professionals with strong
language skills and marketing
abilities◼ After starting the collaboration, thepresident himself expressed his desire
to spread Japan’s culture of brewing
spirits overseas, and the company
was able to successfully secure
about 10 global professionals

Details of Collaboration, Investment Ratio,
and Board of Directors Composition◼ KOMASA KANOSUKE DISTILLERY, a Kagoshima-based whisky manufacturing
company, was established in August 2021
◼ The collaboration involved the manufacture, marketing, and sale of whisky◼ The collaboration also led to thedevelopment of new products, suchas Diageo selling a collaborative
product made from KOMASAKANOSUKE DISTILLERY whiskybarrels

Point◼ It is important to select an appropriate partner who can respect thecompany’s brand and traditions and aim for a global roll-out of products
together◼ Diageo acquired a minority share of KOMASA KANOSUKE DISTILLERY shares.
There are 2 directors from KOMASA JYOZO and 1 director from Diageo. KOMASAJYOZO directs the management of the business➢ The company was approached for collaboration by foreign companies other than
Diageo, but the collaboration with Diageo was decided since the company feltthat Diageo would respect KOMASA JYOZO’s brand, quality, and autonomy.
Both companies were able to share an awareness of creating a brand together
over time on the basis of equal footing

Resources provided(e.g., support)◼ A scheme that would be beneficial for KOMASA JYOZO as well as KOMASAKANOSUKE DISTILLERY was created• KANOSUKE brandwhisky products andbarrels

Resources provided(e.g., support)
Majority ratio

Minority ratio

KANOSUKE DISTILLERY

Board of Directors
Composition
2 KOMASA JYOZO members• Provided funding for

product manufacturing• Provided knowledge on
whisky manufacturing
and overseas markets➢ By having KOMASA JYOZO consign the bottling of KOMASA KANOSUKEDISTILLERY’s whisky and lease its warehouses and other buildings to KOMASAKANOSUKE DISTILLERY, the whisky business was structured to also
contribute to the sales of KOMASA JYOZO, making this a collaboration that
benefits the group as a whole

1 Diageo member

Outline of the deal
<Date of announcement> Aug. 2021 <Scheme> Diageo investment in existing subsidiary of KOMASA JYOZO (minority investment) <Transaction amount (investment amount)> Undisclosed<Japanese company> KOMASA JYOZO CO., LTD. (Kagoshima) <Business Description > Manufacture and sale of authentic shochu, liqueur, whisky, and spirits <Sales> 2.6 billion yen (FY ended June 2022)<No. of employees> 105 (as of Nov. 1, 2021) <Capital> 30 million yen<Category> SME <Investor (foreign company)> Diageo plc (UK) <Business Description> Manufacture and sale of alcoholic beverages27

⑦ JTB System Solution accepting an investment from

Joint venture

IBM Japan, Ltd.(JTB x IBM Japan, 2021)

Software/information

JTB received an investment, IT functionality and know-how from IBM into its subsidiary JTB
System Solution, forming a joint venture and changing its name to I&J Digital Innovation(hereinafter "IJDI")

Post-Deal

Pre-Deal① Issues② Objectives③ Process◼ JTB was aiming to further
promote DX and strengthen its
IT human resources◼ JTB issued a Request for
Information (RFI)◼ The company implemented a
Quality Assurance (QA) review
process equivalent to IBM’s◼ IBM Japan (hereinafter “IBM”)
had a goal of proactively
contributing to the digitalization of
JTB◼ IBM proposes enterprisearchitecture proposal along withmeasures to strengthen IT
planning functions and reducecosts④ Outcome◼ The company contributed to
improved quality for systemdevelopment, thus also
contributing to a reduction of
cost overrun risk
◼ The company defined processes for
identifying issues and solutions◼ The company is currently

introducing automated tools for◼ The company has held one-on-one
system management
meetings (including thosebetween the president and each ◼ The company is currently
employee) and roundtables atdeveloping IT human personnel
utilizing IBM’s training programs
various levels

Details of Collaboration, Investment Ratio,
and Board of Directors Composition

Point◼ This collaboration involved system development, operation, and maintenance, as
well as IT support, in the domestic and international IT service businesses of JTB
and JTB Group companies◼ Based on IBM’s proposal, JTB formulated an enterprise architecture for theIT system◼ The investment ratio is IBM 65% and JTB 35%◼ The current composition of the board of directors is three members from IBM (ofwhich one is part-time), and two members from JTB, and a shareholders council
has been established

Resources provided(e.g., support)•

Existing IT systeminfrastructure•

Human Resources

Resources provided(e.g., support)
35%

65 %
I&J Digital Innovation(IJDI)• Human Resources• IT and management
know-how➢ Projects were prioritized and IT development proceeded◼ The collaboration contributed to enhanced quality of IT system developmentby implementing IBM standard processes. As a result, the collaboration also
contributed to a reduction of cost overrun risk

◼ The company also adopted IBM’s HR system (including IBM’s professional
certification), and clarified employees’ desired careers before providing
support such as training. This contributed to enhanced employee
engagement and motivation

Board of Directors
Composition
2 JTB members

3 IBM members

Outline of the deal
<Date of announcement> April 2021 <Scheme> IBM Japan, Ltd. investment in a JTB Corp. subsidiary (JTB System Solution ), and the latter’s name is changed (IBM Japan 65%, JTB 35%) <Transaction amount (investment amount)>
Undisclosed<Japanese company> JTB System Solution (Tokyo) (currently I&J Digital Innovation (IJDI)) <Business Description> System development, operation, and maintenance, as well as IT support, in the domestic and international IT service businessesof JTB and JTB Group companies <Sales> 4.0 billion yen <No. of employees> 400 <Capital> 100 million yen <Investor (foreign company)> IBM Japan, Ltd. (United States) <Business Description> Provision of products and services related to
information systems

28

⑧ Establishment of TG Octopus Energy Co., Ltd.

Joint venture(Tokyo Gas x Octopus Energy 2021)

Other retailTokyo Gas Co., Ltd. established a joint venture company with Octopus Energy to expand electricity sales, mainly fromrenewable energy sources, in Japan. The joint venture company has expanded its sales area from the Tokyo metropolitan
area to all of Japan, while leveraging digital technology to create a superior customer experience. Additionally, the company
has achieved a reduction in operational costs and is promoting the development of DX human resources and corporate
culture reform

Post-Deal

Pre-Deal①Issues◼

◼

While Tokyo Gas had achieved businessexpansion mainly in the Tokyo
metropolitan area after entering theelectric power retail industry, thecompany was aiming for further
business expansion including area
expansion
As Tokyo Gas was aiming for DX inelectricity retailing, it needed to build asystem that was scalable and flexible
in terms of customer management
systems, among others, and that
could provide an even better
customer experience②Objectives③Process◼ Octopus Energy, an energy company
with strengths in digital technology,
had been attracting attention in the
U.K., where the electricity retail market
was liberalized before Japan◼ Octopus Energy had strengths in digitalplatforms that could centrally
manage customer acquisition,
contracts, and other customer
management through the use ofdigital technology, and Tokyo Gas
aimed to implement an advanced
system based on such strengths◼ Due to the differences in languages and ◼ Tokyo Gas developed a nation-wide
corporate cultures between the twoelectricity retail business centered oncompanies, mutual understanding
renewable energy, by utilizing
had to be deepened throughOctopus Energy's digital platform
discussions of each other's visions
called "Kraken" and digitaland objectives for establishing a joint
marketing methods
venture company, and thereby arelationship of mutual trust was built ◼ Tokyo Gas engineers have gained◼ In addition, Octopus Energy's corporate
Octopus Energy's DX know-hows, andbrand and corporate culture weredigital human resource development
adopted in establishing the joint venture
and corporate culture change werecompany, in order to develop it as apromoted at Tokyo Gas"new brand" for the Tokyo Gas Group

Details of Collaboration, Investment Ratio,
and Board of Directors Composition◼ The content of the collaboration focused on renewable energy-centeredelectricity retailing in Japan, utilizing the digital platform called "Kraken”* "Kraken" is a proprietary digital platform developed by Octopus Energy for the integrated
management of customer communication and contract information, including inquiries, applications,and rate information. and contract information. Highly scalable and flexible, with the ability tochange specifications in a short period of time, allowing for daily improvements◼ Tokyo Gas owns 70% and Octopus Energy owns 30%◼ 4 directors from Tokyo Gas and 2 directors from Octopus Energy

Resources
provided• Power procurement• Customer development
in Japan• Knowledge of Japaneselaws and regulations

70%

4 Tokyo Gas members

30%

Resources
provided• Digital platforms• Technicians

TG Octopus Energy

Board of Directors
Composition• Business know-how

2 Octopus Energy members④Outcome

Point◼ Promoting mutual understanding by matching visions and the objectives forestablishing a joint venture comp➢ Before negotiating specific contract terms and conditions, repeated online dialogues
were held on the visions that both parties were aiming for and what they wanted
to achieve in the future. This helped to deepen mutual understanding between
the companies even during the time of the Covid-19. And allowed them tobridge differences in corporate cultures and cultural gaps, thereby arelationship of trust was built◼ Tokyo Gas smoothly adopted the philosophy, business know-hows andsystems of the British company that would be a partner in the joint venture➢ Tokyo Gas actively adopted Octopus Energy's business know-hows and the"Kraken" system. In doing so, Tokyo Gas localized the UK services and knowhows for the Japanese market, which greatly advanced businessdevelopment and service sophistication◼ Tokyo Gas implemented a speedy top-down decision making for DX
promotion➢ There were concerns about competition between Tokyo Gas' existing business and
TG Octopus Energy's business, but Tokyo Gas' management emphasized thebenefits of business expansion through DX in electricity retailing and madethe decision to establish the joint venture company

Outline of the deal
<Date of announcement> December 2020 <Scheme> Tokyo Gas established a joint venture company with Octopus Energy (Tokyo Gas 70%, Octopus Energy 30%) <Transaction amount (investment amount)> 420 million yen<Japanese company> Tokyo Gas Co., Ltd. (Tokyo) <Business Description> Production and sale of city gas and electricity, toll supply, overseas resource development and investment, real estate development, etc. <Sales> 3.3 trillion yen in
FY ended March 2023 (consolidated) <No. of employees> 15,963 (consolidated)<Capital> 141.8 billion yen <Category> Large company <Investor (foreign company)> Octopus Energy Group Limited (HQ: UK) <Business Description> Retail of electricity and gas, development of digital platforms, renewable energy generation,
sale of EVs, heat-pumps, etc.

29

⑨ Establishment of BASF TODA Battery Materials（TODA KOGYO CORP.× BASF 2015）

Joint Venturechemical

BASF TODA Battery Materials was established with 66% equity from BASF Japan Ltd. and 34% from TODA KOGYOCORP. The joint venture will conduct research and development, production, marketing and sales for a broad rangeof cathode materials, particularly NCA (Nickel Cobalt Aluminum Oxide), LMO (Lithium Manganese Oxide) and NCM(Nickel Cobalt Manganese) in Japan. Internationally, the company will leverage BASF’s global network and reach todrive growth in the battery materials market, which BASF has identified as a key growth field for the future.

Pre-Deal（～2015）*◼ BASF TODA Battery Materials will operate as part of BASF’s
global Battery Materials business. It will benefit from BASF’s
position as the leading chemical supplier to the automotive
industry as well as from TODA KOGYO CORP.’s marketing andtechnical capabilities and extensive know-how in the battery
materials industry.
◼ 「Because the lithium-ion battery market continues to expand
globally, we concluded that we need a strong alliance partnerthat would enable us to create more value than simple
consolidation and to advance our cathode materials businesssynergistically.」（October 30, 2014 Tadashi Kubota, Chairmanof TODA KOGYO CORP.）※◼ Headquartered in Minato-ku, Tokyo, BASF TODA Battery
Materials has production facilities in Sanyo-Onoda city,
Yamaguchi Prefecture, and Kita-Kyushu city, Fukuoka
Prefecture, Japan. It has a direct employee base of
approximately 80, with annual combined production capacity
for cathode active materials and their precursors ofapproximately 18,000 metric tons.

Details of collaboration・Investment Ratio*◼ BASF TODA Battery Materials was established with 66% equityfrom BASF Japan Ltd. and 34% from TODA KOGYO CORP. The
joint venture will conduct research and development, production,marketing and sales for a broad range of cathode materials,
particularly NCA (Nickel Cobalt Aluminum Oxide), LMO (Lithium
Manganese Oxide) and NCM (Nickel Cobalt Manganese) in Japan.
•

Pro-Deal（2022）**◼ BASF and TODA to further expand their Japanese joint
venture’s capacity for high nickel cathode active materials.

◼ Expansion to increase the supply of high nickel cathode active
materials for up to 45 GWh cell capacity per year
◼ Investment targets to meet growing market demand andstrengthen the local supply chain in Japan（New capacity will
start operation in second half of 2024）

Onoda site

expand the production capacity（2022）**◼ Construction for the new capacity at the Onoda site will startin Q4 2022 and commercial production is planned for thesecond half of 2024.
◼ BTBM’s annual capacity for high nickel cathode active
materials (CAM) will achieve up to 60,000 tons by 2025.
◼ The new expansion project has been selected by the Ministryof Economy, Trade and Industry as a “Program for Promoting
Investment in Japan to Strengthen Supply Chains” and has
been granted subsidies.

https://www.basf.com/jp/en/media/news-releases/global/2015/02/p-15-147.html ** https://www.basf.com/global/en/media/news-releases/2022/07/p-22-294.html※ https://www.basf.com/jp/en/media/news-releases/global/2014/10/p-14-378.html

30

⑩ Establishment of Hitachi ABB HVDC Technologies Ltd. (currently
integrated into Hitachi Energy Japan Ltd.)(Hitachi, Ltd. x ABB, 2014 )Joint Venture
Electric Power and Gas

Hitachi, Ltd. has established a joint venture with ABB to develop business in high-voltage direct current (HVDC) power transmission, a key
technology for achieving carbon neutrality. After the collaboration, the joint venture company has leveraged ABB's global experience andcutting-edge technology to build a win-win relationship and achieved growth in the Japanese HVDC market. The collaboration developed
into a partnership that led to the overseas expansion of Hitachi's power transmission and distribution business

Post-Deal

Pre-Deal①Issues②Objectives③Process④Outcome◼ In Japan, the introduction of HVDC
was expected to go into full swing
due to the expansion of renewableenergy and the development of widearea interconnection.
◼ Hitachi Ltd. had issues inaccumulating HVDC technologies
and knowledge, including voltage
source converter-type HVDC , and
ABB had issues in entering into theJapanese market with its HDVC
business.

◼ Hitachi had considered collaboration
with ABB, which had a long historyof HVDC research and extensive
global experience◼ CEO was appointed from Hitachi, Ltd.
and COO was appointed from ABB.
Thorough explanations from bothparties fostered understanding andtrust among the relevant membersof the parent companies.
◼ Employees were seconded from bothcompanies. Training overseas andparticipation in overseas projects
have increased the motivation of
employees who were seconded
from Hitachi.

◼ Sales of domestic HVDC business,
which were several hundred million
yen before the establishment of thejoint venture company, have grownapproximately ten times in eight
years since the collaboration.

◼ ABB was attracted by Hitachi, Ltd.'s
reliability, domestic bases andhuman resources, and offered its
HVDC and system engineering
technologies and know-how.

Details of Collaboration, Investment Ratio,
and Board of Directors Composition◼

◼
◼

Hitachi ABB HVDC Technologies, Ltd. was newly established. Currently, HVDC Techno is
integrated into Hitachi Energy Japan Ltd. (a wholly owned subsidiary of Hitachi Energy(Headquarters: Switzerland)) following the acquisition and integration of ABB's powertransmission and distribution division by Hitachi, Ltd.
The collaboration covers all aspects of HVDC business in Japan.
Hitachi owns 51% and ABB owns 49%. 2 directors has been dispatched from each of
Hitachi, Ltd. and ABB, respectively to manage the business on an essentially equal
footing.

Resources
provided• Knowledge of reliability
and business practices inJapan• -Domestic offices andpersonnel

51%

49%

Hitachi ABB HVDC Technologies, Ltd.
(HVDC Techno)
Board of Directors Composition

2 Directors from Hitachi, Ltd.

Resources
provided- HVDC Achievements andTechnologies-System Engineering
System engineering
technology and know-how◼ Hitachi aims to continue leading thedecarbonization in Japan and theworld by leveraging cutting-edge
HVDC technologies and abundant
HVDC installation know-hows.

Point◼ Strategic collaboration to incorporate cutting-edge overseas technologies
and deploy them in the domestic market➢ Expanding business by incorporating advanced overseas technologies and knowhows through collaboration and deploying them in the domestic HVDC market,
which was expected to grow◼ Building a relationship of trust between CEO and COO of the joint venturecompany and communication with the parent companies➢ Maintaining close communication with the parent companies, led by the CEO
and COO, and adopting a management policy that enabled all threecompanies, including HVDC Techno as well as the parent companies, to benefit
from the joint venture company, thereby avoiding conflicts in management policy,
maximizing profits, and building a relationship of trust. Because the collaboration
involved bringing a foreign product to Japan, Hitachi avoided any discrepancies
in understanding of the particularities of the Japanese market before thestart of the collaboration.

2 Directors from ABB

Outline of the deal<Date of announcement> December 2014 <Scheme> Hitachi to establish a joint venture with ABB (ABB 49%, Hitachi 51%) <Transaction Amount (investment amount) >undisclosed<Business Description> Manufacturing and sales of electrical equipment, etc. <Sales> 10.9 trillion yen (consolidated, as of March 31, 2023) <Number of Employees> 322,525(consolidated, as of March 31, 2023) <Capital> 462.8 billion yen <Classification> Large company<Investor (foreign company) > ABB Ltd (Switzerland)<Business Description> Four segments: Electrification, Process Automation, Motion, and Robotics & Discrete Automation

31

⑪ Morgan Stanley and Mitsubishi UFJ Financial Group's Strategic Alliance andMutual Investments in Securities Subsidiaries in Japan(Mitsubishi UFJ Financial

Joint venture

Group x Morgan Stanley , 2010)

Securities

Mitsubishi UFJ Financial Group and Morgan Stanley (MS), an US firm, merged their Japanese securities businesses via mutual
investments. Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. (hereinafter “MUMSS”; name changed from Mitsubishi UFJ
Securities Co., Ltd.) and Morgan Stanley MUFG Securities Co., Ltd. (hereinafter “MSMS”; name changed from Morgan Stanley
Securities Co., Ltd.) were launch to utilize global market knowledge and domestic reach in the Japanese market

Post-Deal

Pre-Deal① Issues② Objectives③ Process◼ Mitsubishi UFJ Financial Group(hereinafter “MUFG”) was aiming tostrengthen its Japanese
investment banking businessand to capture cross-borderdeals in particular◼ This collaboration began when
MUFG made an investment in MS
in 2008◼ Expectations were that MUFG would
provide an extensive domestic
customer base, while MS would
provide its global network, highquality products and services,and expertise, and that this would
create synergy effects◼ Close collaboration was achieved◼ The company aims for the growth
including with the seniorof the investment banking business
management at MUMSS and MSMS
in Japan and overseas(regular discussions between senior ◼ The company aims to shift andmanagement including the CEOs ofpromote the business model of theboth companies using a steering
wealth management business
committee)(comprehensive management◼ The company absorbing MS's
service for personal assets)advanced practices in the fields◼ The company ranked at No.2 inof investment banking, risk
the net operating revenue in the
management, etc.
Japanese securities industry◼ US-based Morgan Stanley (“MS”)
was aiming to raise its presence
in Japan and capture moredomestic deals

Details of Collaboration, Investment Ratio,
and Board of Directors Composition◼ MUMSS provides investment banking, sales and marketing, research, andretail/middle market services (including wealth management)◼ MUFG’s share is 60% and MS’s share is 40%◼ Directors are appointed from both MUFG and MS

Resources provided(e.g., support)• Extensive customer baseof both corporations andindividuals in Japan• MUFG’s diverse line-up offinancial products andservices

Resources provided(e.g., support)
60%

40%
MUMSS

• Global reach• Global know-how• High quality products
and services④ OutcomePoint◼ The company built an appropriate monitoring structure based on crossgovernance of the two shareholder companies◼ The company clarified authority enabled smooth decision-making, while
sharing directors from both companies allowed for proper monitoring ofactivities◼ Compatibility between MUFG and MS corporate cultures has existed◼ MUFG and MS have shared a common corporate culture, both of whichplaced emphasis on providing better services to customers from a longterm perspective, and therefore had a high degree of affinity with each other◼ The company earned customer trust by responding to increasingly
sophisticated and diverse financial needs◼ The company has gained the trust of its customers by being able to provide
services for both large cross-border deals and small- and medium-sized
deals in Japan, while ensuring the quality of its human resources
through the sharing of best practices

323.６ Detailed Case Studies

33

① Sale of Fuji Staff, Inc. to Randstad Group(Fuji Staff x Randstad, 2010)

Majority investment
Service①Issues②Objectives

Fuji Staff faced a challenge in expanding its staffing businessoutside of the Kanto region. After entering the Japanesemarket, Randstad felt there was a limit to the growth it could
achieve on its own

This collaboration began when Randstad made aninvestment in Fuji Staff. The two companies merged,
combining their resources with a plan for further growth

Fuji Staff

Randstad◼Fuji Staff was a company thatprovided temporary/part-time
staffing services to manufacturing
and other companies throughout
Japan, but it had a strong local
Kanto presence and was
relatively unknown outside of the
Kanto region◼At the time, employment was
declining, especially in the
manufacturing industry, due to theeffects of the 2008 financial crisis,
and the company recognized theneed to improve their business
operations and develop new
business ventures◼Randstad was attracted by theJapanese staffing market and entered
the market. Although the company
aimed to grow through new
businesses, it recognized that
accumulating a track record isimportant in the staffing business, andthat it would be difficult to catch up
with major Japanese companies
alone◼Therefore, the company planned tocollaborate with a Japanesecompany that had customer
networks in the Japanese market

Around 2004
Randstad, which had been searching for a partner in Japan, had approachedmultiple temporary/part-time staffing companies, one of them being Fuji Staff.
As both management teams exchanged information about staffing services inJapan and around the world, they gradually built a sense of trust because
the two companies shared similar corporate philosophies andmanagement philosophies
2008
Randstad made a 10% investment in Fuji Staff
2011
After Randstad made the 10% investment, Randstad continued to expand theinvestment while transferring their know-how and corporate culture to
Fuji Staff. In order to build a structure that allowed for rapid decision-making
and execution, and flexible response, and to achieve further growth in Japan,
Randstad acquired Fuji Staff and the businesses were consolidated as a wholly
owned subsidiary of Randstad③ Process④Outcome

The collaboration achieved a smooth business consolidation
by forming a project team to transfer Randstad’s culture andknow-how to Fuji Staff

Through the creation of new businesses, both sales andnumber of employees approximately doubled in the ten years
following the business consolidation of 2011

◼Even before the business consolidation, a project team was formed within
Randstad to realize synergies between the two companies and to transfer knowhow and culture from Randstad to Fuji Staff◼After Randstad acquired Fuji Staff, Fuji Staff's management team remained in thecompany in principle and continued to operate the company while making theuse of Fuji Staff's corporate culture(Overview of the project team)
Period of• Formed in 2006, active until after the business consolidation
operationin 2012Team
members• Approx. 10 members, including directors and generalmanager class employees from various fields including sales
planning and HR

Topics of
discussion• How to leverage Randstad’s global knowledge at Fuji Staff• How to maximize global transactions in Japan• How to explain about the acquisition to Fuji Staff’s employees
and encourage them to stay with the company◼After the business consolidation, the company has been able to increasetransactions with Japanese subsidiaries of global companies by leveraging
Randstad's global network. Expanding business nationwide, sales have doubled
in the 10 years since the merger◼In addition, at the time of the acquisition in 2010, approximately 80% of Fuji
Staff's sales were accounted for by temporary/part-time staffing services for the
manufacturing industry and clerical staffing services. However, after the businessconsolidation, the company developed new businesses such as a job change
service for professionals and a temporary/part-time staffing service forengineers, which also led to the expansion of its business portfolio◼In terms of in-house recruitment as well, it became easier to secure
specialists in areas such as marketing and IT, as well as global
professionals, which was previously difficult to do

34

① Sale of Fuji Staff, Inc. to Randstad Group

Majority investment
Service(Fuji Staff x Randstad, 2010)

Point① Fuji Staff started by accepting minority investment andconfirmed the benefits of collaborating with Randstad② The company executed initiatives to drive the merger at theoperational level◼ Randstad and Fuji Staff had been in communication at the management level◼ The smooth business consolidation was made possible by forming a merger
regarding a capital alliance even prior to Randstad's investment, and confirmed the
project team within Randstad to instill its management philosophy,
similarities in each other's management philosophies and corporate cultures. Aftercorporate culture, and business know-how in Fuji Staff
that, Randstad invested 10%, which was then increased to 20.4%, and ultimately the ◼ For example, the project team was led by human resources from eachcompany was integrated as a wholly owned subsidiarycompany on the front lines of sales to share business knowledge, and this◼ Once Fuji Staff accepted the minority investment, it began incorporating
resulted in the significant dissemination of Randstad’s business know-how in Japan,
Randstad's management philosophy and corporate culture among its
which was utilized to expand the businessemployees and confirmed the benefits of the capital alliance. The company◼ In addition, after the business consolidation, the company adopted Randstad's HR
ultimately accepted the acquisition proposal and successfully achieved growth as asystem, which included an "assignment system" which solicited applications fromsubsidiary of Randstad
employees within the company for placement in other positions, a multifaceted
employee evaluation system, and a system where managers supported employees'
success, all of which aimed to improve employee initiative and skills

Points that were thought out pre- and post-deal
Pre-Deal

Q: Were there any special considerations working towards thecollaboration?

Post-Deal

Q: Were there any points that you devised while collaborating?

(Randstad(former Fuji
Staff Group
director)

Q: How did the situation change as a result?

A: Although the management philosophies and corporate culturesof Randstad and Fuji Staff were similar, Randstad was a foreignaffiliated company, so we took time to carefully integrate themanagement philosophies and corporate cultures(Randstad(former Fuji
Staff Group
director)

Q: Were there any special considerations you took in terms ofofficers and employees?
A: In addition to holding information sessions for employees, wemade efforts to retain employees by paying retention
bonuses to employees who remained with Randstad after theacquisition. In particular, employee information sessions were
held multiple times, explaining the reasons why Randstad
chose Fuji Staff as the acquisition target, its future vision,and the similarities in the two companies' corporate
philosophies and ways of thinking. In addition, retention
bonuses were one of the programs adopted by Randstad, which
served as an incentive for employees to remain with thecompany

A: While Randstad instilled its management philosophy, corporate
culture, and business know-how into Fuji Staff, it also made sure
to retain the good aspects of Fuji Staff's existing operations.
Randstad did not immediately ask for changes, but respected Fuji
Staff's history

A: I think we were able to grow by taking advantage of Fuji Staff's
existing network and incorporating Randstad's business knowhow and networks
Q: Looking back on this collaboration, are there any points to learn
from or areas you would like to improve on?
A: While some employees were reassured by the fact that themerger was carried out carefully and over a period of time, thechange may have felt slow to employees who had been
hoping for big changes at Fuji Staff as a result of theacquisition. It is important to quickly identify what needs to bechanged and what needs do not be changed, and then respond
appropriately

35

① Sale of Fuji Staff, Inc. to Randstad Group

Majority investment
Service(Fuji Staff x Randstad, 2010)

After the business consolidation Randstad has promoted efforts such as the recruitment of global professionals andreformation of the HR system, while also expanding business and rolling out new businesses. They accelerated HR
system reforms to strengthen professionals, which are the source of corporate growth, and incorporated global
best practices such as the idea of Diversity, Equity and Inclusion (DE&I)
New business expansion

Changes pertaining to humanresources and HR system◼ Securing new professionals◼ Engineer dispatch service• The company provides a dispatch job search service designatedfor engineers for various job types including system development• Job seekers without engineering experience are provided withconsiderable training including support from expert lecturers andexperience with actual machines• The company aims to provide a space where job seekers looking
to form new careers as engineers can participate, despite nothaving IT experience◼ High-level job change service• The company provides a job change service which targeted job
types requiring management, IT, finance, or other high-levelknow-how• The company provides a job change consulting service which
offers job seekers career plan proposals as well as advice andsupport for a successful career change• In addition to job change services, the company also provides
client companies with the high-level dispatch staffing services
they require• Leveraging Randstad's global reputation made it possible to recruit
global professionals and specialists in the fields of marketingand IT, enabling the company to develop new businesses suchas high-level job-seeking services◼ HR placement system with a high level of
freedom• When personnel are needed for branch manager positions or
project members, the company set up an "assignment system"that allows anyone to self-nominate during a set period oftime as long as they meet the requirements• In particular, the company is committed to promoting theparticipation of women in the workplace, placing emphasis on
applications from female employees during the recruitment periods
and creating an environment in which female employees areencouraged to actively self-nominate . After recruitment,
employees are evaluated fairly and assigned• After creating this system, employees have been more satisfied
with HR placement and their performance improved◼ Close dialogue with managers and multifaceted employee evaluation• Once per quarter, the company holds a “Great Conversation”
where managers and employees can discuss the careerdevelopment, concerns, and the support that the employees
need, which helps the employees realize their full potential• Once per year, a "People Review" is conducted in which the
manager evaluates employees based on their potential andperformance, and the results are shared with the HR department• Highly evaluated employees are encouraged to proactively selfnominate for the assignment system36

② Sale of TAKAMI to L‘Oréal S.A

Majority investment(TAKAMI (Parent company: Brandlift) x L'Oréal, 2020)

Chemical①Issues②Objectives

TAKAMI realized the limitations of operating a business by using
only its own resources.L'Oréal was aiming to grow bystrengthening its Asian brands

TAKAMI received positive evaluation from L'Oréal about its D2Cmodel (a model of selling directly to customers throughsubscription mail-order services), and accepted L'Oréal’s
acquisition proposal with the expectation of further brand growthunder the L'Oréal umbrella◼ TAKAMI aimed to grow as a luxury brand, ◼Thus far L'Oréal’s growth had focused
but cosmetics sales at department storeson European and American brands,
were lead by major brands. TAKAMI
but the L'Oréal Group aimed tofound it difficult to grow its brand ingrow by strengthening its Asianthe high-end market
brands◼ There were organizational structure
issues with taking on the challenge of ◼In particular, L'Oréal desired todoing business under such an industry strengthen their business in the
Chinese market, and Nihon L'Oréal'sframework, including humanbrand search team had been
resources and business expansion,and there was a limit to how much
scouting promising brands
TAKAMI could increase their presence
on its own. The brand needed to be
maintained and strengthened◼L'Oréal’s brand search team discovered the TAKAMI brand, which was popular ona review website, and approached TAKAMI's president directly◼TAKAMI was aiming to expand its business in luxury cosmetics(department store cosmetics) in the Japanese market, and although there
were other options such as acquisition proposals from other companies oran IPO, TAKAMI chose to sell the company to L'Oréal"Initially, I never thought about selling the company. We also considered private
equity funds as potential buyers, but since the goal was to “revolutionize
distribution” through a subscription mail-order model in order to expand Japan’s
strength of rolling out truly customer-centric models both domestically andinternationally, we felt this would be difficult to achieve unless the buyer was acompany in the business; therefore, we were attracted to L'Oréal, the world’s
number one beauty company. Also, during the negotiation process, I really feltthat we could develop the brand from a medium- to long-term perspective."(Former TAKAMI President)③ Process④Outcome

Employees from TAKAMI and L'Oréal have engaged in repeateddialogues to operate the brand in a united way

Following the M&A, sales based on the TAKAMI brand more thanquadrupled compared to before the M&A thanks to the expansionof sales channels and a change in employees’ awareness◼The former president of TAKAMI and existing employees continued to
discuss brand strategy and organizational structure with the new members
who joined from L'Oréal. Although there were some differences in ideas
regarding sales, etc., both companies made efforts to maintain and strengthen
the TAKAMI brand◼Leveraging L'Oréal's network with department stores, the company
expanded its sales channels at department stores, e.g., by opening pop-up
stores at well-known department stores◼ At the time of the acquisition, TAKAMI was left to its own discretion andcontinued to operate its organization in the same way as before. After that,with the aim of ultimately integrating the two companies, L'Oréal took the lead increating a space for L'Oréal and TAKAMI's employees to share information. Nihon
L'Oréal respected TAKAMI's brand culture while promoting understandingof L'Oréal culture and communicating with them thoroughly◼By having TAKAMI's human resources, primarily managers, come under theumbrella of an external organization like L'Oréal, they were able to realize thestrength of the TAKAMI brand, which is its dedication to customers. The
company became proactive in creating services and brands that are
valuable to customers◼Through these sales channel expansions and strengthened brand power,
TAKAMI achieved “an increase in new customers” and “a decrease in thecancellation rate”, and sales for the TAKAMI business grew more thanquadrupled as compared to before the acquisition37

② Sale of TAKAMI to L‘Oréal S.A

Majority investment(TAKAMI (Parent company: Brandlift) x L'Oréal, 2020)

ChemicalPoint①L'Oréal Group’s commitment to growing the TAKAMI brand◼ After the acquisition, L'Oréal cooperated with TAKAMI, the seller, on an
equal footing to grow the TAKAMI brand② Formulating a brand strategy consistent with TAKAMI’s
origins◼ TAKAMI joined the L'Oreal Luxury Business Headquarters, which placed theemphasis on dialogue with customers within Nihon L'Oréal◼ In order to maintain the unique value of this business, the CEO and executivesof L'Oréal headquarters globally communicated that, rather than trying to◼ Former TAKAMI employees discussed the origins and future vision of theadapt the TAKAMI brand to L'Oréal, the company will take the correct
brand with L'Oréal to develop a business strategy that leveraged theapproach to the Japanese market and then expand globally after gaining
advantages that the TAKAMI brand already possessed
success in the Japanese market③ Close mutual cooperation to expand the TAKAMI brand◼ The former president of TAKAMI was also been appointed as a special
globallyadvisor to Nihon L'Oréal, and became able to provide advice on TAKAMI's
brand value and brand management, thereby realizing the continued growth ◼ Both L'Oréal Group and TAKAMI were aiming to enter the Chinese market, andL'Oréal has formed a specialized team for overseas expansionof the TAKAMI business in Japan◼ The company assigned personnel who specialized in the local market to assist
with feasibility studies on TAKAMI's subscription mail-order business modelin China

Points that were thought out pre- and post-deal
Pre-Deal(Formerpresident of
TAKAMI)

Q: How did the M&A negotiations with L'Oréal proceed amid
the Covid-19 pandemic?
A: Initially, our counterparts were Nihon L'Oréal Japan's M&A
team and its president, and we communicated with them tounderstand their business model. In the actual negotiations,antitrust laws and other regulations came into play, so wenegotiated with members of the Paris headquarters. Due tothe Covid-19 pandemic, the negotiations, including thesigning of the contract, were conducted online with thecooperation of lawyers and securities companies
Q: Were there any difficulties you faced during thenegotiations?
A: The other party had multiple departments, and eachdepartment requested similar documents, and in addition to
the large number of documents required, it was necessary tohave a small team from the perspective of protecting
information. As a result, negotiations were difficult and took
about a year and a half

Post-Deal

Q: Were there any points that you devised when collaboratingwith L'Oréal?
(Formerpresident of
TAKAMI)

A: Since L'Oréal has strengths in global expansion, aninternational team was established to lead the formulation of
global expansion strategies and we worked together todevelop strategies. For efforts between L'Oréal and TAKAMI,
rather than thinking about who was right or wrong, we valued
the intentions of each party to combine the best of both sides
to create the best possible solutions together, which led to a
successful collaborative relationship38

② Sale of TAKAMI to L‘Oréal S.A

Majority investment
Chemical(TAKAMI (Parent company: Brandlift) x L'Oréal, 2020)

TAKAMI has utilized L'Oréal’s resources with the aim at further growing the brand in Japan andoverseas. L'Oréal has absorbed know-how regarding TAKAMI’s D2C brand, and has grown thegroup as a whole by rolling this out for its own brands as well
(Resources and initiatives gained from TAKAMI)• Learned TAKAMI's CRM (Customer RelationshipManagement) to gain the trust of customers and build
continuous relationships, and absorbed how to set andmeasure KPIs
• Began offering subscription mail-order for other brands
such as Lancome and Shu Uemura

Collaborative efforts(Resources and initiatives gained from L'Oréal)• New expansion into department store channels byleveraging L'Oréal’s connections• Was able to obtain new professionals, skills, andcosmetics knowledge(Future goals)• Aiming for success in Japan's luxury cosmetics market• Implementing universalization (L'Oréal's strategy of respecting regional
differences while maintaining a common product concept) to aim foroverseas expansion of Japanese brands

Vision(Future goals)• Thorough KPI management keeping in mind not only sales but also theenhancement of brand value that will enable the building of long-term
relationships with customers (Life Time Value, LTV)
• Accelerate the growth of the brand in Japan and the global market torealize growth for the L'Oréal Group as a whole(Reference)D2C model• TAKAMI’s mail-order business mode is subscription based and sells
products directly to customers. Based on the premise of a continual
relationship with customers, a key point of this business is theenhancement of LTV through improved value of customer
experience• At TAKAMI, the effectiveness of initiatives is measured through AB
tests and other marketing methodologies, and the company
implements initiatives and manages KPIs from a customer’s
perspective

TAKAMI skin peel
• TAKAMI's flagship product, an exfoliating lotion created withbeautiful skin in mind. This product solves skin problems throughcare that aligns with the cycle of cell turnover• As of the end-June 2023, this product has been purchased byapprox. 2.03 million people, and has won 67 cosmetics awards(September 2014-June 2023)
Source: TAKAMI website

39

③ UPWARD, Inc. accepting a minority investment from

Salesforce, Inc. (UPWARD x Salesforce, 2013)

Minority investment
Software/information①Issues②Objectives

UPWARD saw future potential in SaaS and cloud computing.
Salesforce was seeking to ally with an application partner toexpand business in Japan

Through this collaboration, UPWARD, which had uniquestrengths in location information, was combined with
Salesforce's CRM. This aligned the intentions of both parties
and strengthened the relationship

UPWARD

Salesforce◼The company had been developing◼Salesforce aimed to expand its CRM
geographic information systems(GIS)
business in Japan by providing aunder contract, but this was only
cloud-based CRM (customer
offered to a limited number ofrelationship management) systemcompanies as it required specialist◼Salesforce was aiming to further
skills to use
promote the use of CRM by◼The company saw potentials in SaaS,
collaborating with application
which allows the company to build
partners
ongoing relationships with customers
to improve the value of its customer
experience and generate revenue
through additional features, and incloud computing, which allows thecompany to provide the latest
services at low implementation
costs◼UPWARD had strengths in the field of location information, and byeliminating the "hassle of recording" for outside sales representatives, sales
records could be recorded via mobile devices, which has led to the promotionof the use of CRM provided by Salesforce◼UPWARD has been a partner of Salesforce since 2011, and built a
relationship with Salesforce by, e.g., attending an event hosted by Salesforce
in 2012, and Salesforce’s investment in UPWARD was decided in 2013

③ Process④Outcome

UPWARD has set quantitative management indicators for
SaaS business and formulates business plans

As UPWARD’s business expanded, the company hired more
employees. The company improved product updates andcustomer proficiency to achieve high customer satisfaction◼The company has implemented the latest management methods, suchas setting quantitative management indicators (THE MODEL) for SaaS
business advocated by Salesforce, and formulated a plan

◼UPWARD's selling points were its business expansion and its partnership with
Salesforce, which led to an increase in recruitment. The company has now
become able to do its own sales beyond just introductions from
Salesforce◼In addition to communicating by phone and chat, the companies also haveheld regular meetings to share information with each other◼The company was ranked #1 in the manufacturing industry category ofSalesforce's BEST HIT APP RANKING 2022
◼By transitioning to a business model utilizing SaaS based on the partnershipwith Salesforce, UPWARD was able to improve product updates and boost
customer proficiency even after signing the investment contract, thus
realizing high customer satisfaction40

③ UPWARD, Inc. accepting a minority investment from

Salesforce, Inc. (UPWARD x Salesforce, 2013)

Minority investment
Software/information

Point① The company was able to clarify its own strengths byreceiving investment② Strengthening the partnership with a focus on sales
collaboration◼ In addition to the strong sales of UPWARD's application, having ◼ Salesforce was trying to build a cloud ecosystem for enterprises,
its unique positioning as a location-based application
so after accepting the investment, UPWARD received extensive
vendor, that combines location information with CRM to
support, including regular meetings, explanations ofprovide sales support functions for outside salespeople, ledapplication vendors including UPWARD products toto the company to collaborate with Salesforce
Salesforce employees in Japan, and seminars◼ In particular, the uniqueness of UPWARD’s location◼ For expanding overseas, the company established a base in
information became a selling point, and the company became Singapore, taking into consideration the fact that Salesforce
the first location information application vendor in Japan to form
products were widely used in Singapore, making test marketinga capital alliance with Salesforce
possible

Points that were thought out pre- and post-deal
Pre-Deal(UPWARD)

Post-Deal
Q: Looking back at when you first started
collaborating, are there any points that you
devised?
A: At the time, most of our business was referred
by Salesforce, so in order to be given priority when
making deals, we needed to increase ourrecognition within Salesforce. Therefore, allmembers except for the engineers took turns
handing out flyers in front of the Salesforce
building to promote what they could achievethrough collaboration(UPWARD)

Q: Were there any points that you devised oncollaborating?
A: Through the alliance team, we explained theselling points of UPWARD to Salesforce employees
in Japan, which would lead to increased the useof the CRM provided by Salesforce

Source of underlined portions: FastGrow “Courageous enough to‘hand out flyers at Salesforce’--UPWARD’s Kaneki shows the spine ofa manager who makes people want to invest” (DNX Kurabayashi’s
Business Cave #01)

41

③ UPWARD, Inc. accepting a minority investment from

Salesforce, Inc. (UPWARD x Salesforce, 2013)

Minority investment
Software/information

While keeping its partnership with Salesforce at the core of its business, UPWARD aims to respondto multiplatform needs in Japan and expand business overseas primarily in Southeast Asia

Multiplatform compatibility

Overseas expansion◼ As the number of companies offering cloud-based CRM
systems increases, the company is promoting multiplatform
compatibility to enable outside and door-to-door salespeople todevote their resources to creative work, with the vision of"creating a world where people can work comfortably
anywhere”.
◼ Currently they are building relationships with multiple platform
companies and discussing the direction of future business◼ The company had aspired to expand overseas since the timeof its establishment, and has developed products that weresuitable for overseas markets from a technical standpoint◼ Aiming to expand business in Southeast Asia, a market
where future growth is expected, the company established abase for information collection in Singapore where APAC
information could be collected without any time differences◼ The company aims to expand business, while
communicating with the Singapore offices of other CRM
platformers such as Salesforce(Reference) UPWARD’s brand philosophy
Inspiring upward creativity
PURPOSEVISION

Commit to customer success

Draw out the creativity of field workers toaccelerate the growth of the company and thesociety

Go smarter, anywhere
Create a world in which people can work
comfortably from anywhere

Our promise to customer success

VALUES

Always challenge, always day 1
Always be the one who takes on challenges, andalways do so with a fresh mindset
Source: UPWARD, Inc. website

MISSION

Innovation of the last mile
Innovation of the last mile of the front lines

Be fair
Always deal with everyone with a fair attitude

Source: UPWARD, Inc. website

42

④ PLAID, Inc. accepting a minority investment from

Minority investment

Google International LLC(PLAID x Google, 2019)

Software/information①Issues②Objectives

PLAID needed to utilize AI technology to grow its businessby enhancing the functionality of its own products, andGoogle was aiming to expand the cloud market in Japanthrough collaboration

Google took notice of PLAID’s core technology and made aminority investment. In addition to introducing clients to eachother’s services, the two companies collaborated on efforts
such as technical support for PLAID’s product development◼ Google invested in PLAID through a third-party allocation of new shares for◼ To develop and operate KARTE, a

CX (customer experience)
platform, on Google’s GCP◼ PLAID was aiming to add morefeatures to KARTE to attract morecustomers. To achieve this, thecompany was considering utilizing
new technologies such as AI. Thiswas difficult to achieve using only
technologies in Japan◼ Google took notice of PLAID, which

was providing a SaaS platform
utilizing core technology making it
possible to analyze customer
behavior in real time on GCP◼ Through collaboration with PLAID,
Google aimed to expand theJapanese cloud market and support
the Japanese startup ecosystem

the purposes of introducing and branding each other's products andservices, and providing technical support for PLAID's product development
Investment
Introduction of services toeach other’s clients

Development &operations

Provision of
KARTE

Provision of GCP

Usage fees for
KARTE

Usage fees for GCP
Flow of money(End users)

Other flow

③ Process④Outcome

The company discussed technical and sales aspects closelywith Google HQ, Google Japan and Google Cloud Japan toaccelerate product development and marketing

The company achieved increased sales for PLAID bystrengthening KARTE functionality, developing new services,and promoting customer development. Two companies
promoted collaboration for consulting services as well
◼ After the investment, Google's commitment increased and the company was◼ PLAID and Google Japan established common goals for technology
development and sales promotion◼ PLAID accelerated product development and marketing by managing
progress on a regular basis with Google HQ and Google Japan

Field
Technical

Sales

Partner◼ Google HQ◼ Google Japan◼ Google Cloud Japan

Details of
collaboration/discussion◼ Development and implementation ofprojects utilizing new tech such as AI
on the GCP◼ Selection of target companies◼ Joint sales and marketing to clientsand progress management thereof

introduced to US clients, and for technical support it also gained access tovarious Google products that were not generally available. For example, thecompany also leveraged technologies such as generative AI◼ In addition, PLAID was aiming
to effect changes in clientcompanies by providing a
combination of products andsolutions, and deepened
relationships by collaboratingin the consulting field as well

Sales figures (Unit: 1M yen)
10,0005,000

Investment

2,937

4,007

5,444

7,295 8,633

02019 2020 2021 2022 2023
Source: Created based on the PLAID website

43

④ PLAID, Inc. accepting a minority investment from

Google International LLC(PLAID x Google, 2019)

Minority investment
Software/information

Point① PLAID provided solutions that were difficult for othercompanies to imitate◼ PLAID has been recognized by Google for its core technologies thatwere difficult for other companies to imitate, such as real-time
analysis of users visiting websites and applications◼ It is important to have a unique core technology in order to berecognized as an investment and collaboration partner by global
companies② Setting goals and managing progress toward thecreation of collaborative synergies◼ Thorough progress management based on shared goals between
PLAID and Google was made◼ For example, when it comes to expanding product adoption, PLAID and

Google worked together to identify potential target customers andreviewed the progress of sales activities on a weekly basis◼ PLAID is an organization that adopts industry-specific customer

strategies and provides solutions tailored to the businesschallenges of each industry, and this similarity with Google madethe collaboration smooth

Points that were thought out pre- and post-deal
Pre-Deal(PLAID)

Post-Deal
Q: Were there any difficulties in particular whenworking towards the collaboration?
A: The investment agreement required toughnegotiations which are more typical in the west.
On PLAID’s part, we demanded what weneeded to demand, and refused to compromiseon what we could not compromise on. In
addition, we carefully considered the mutual
benefits and significance of the collaboration,
taking into account complementary andoverlapping businesses(PLAID)

Q: Were there any points that you devised while
collaborating?
A: We are trying to build a good relationship with
Google by having multifaceted interactions withthem. We set a company strategy and KPIs toachieve results. Close communication is a key tomutually collaborate on business
Q: Are there any specific initiatives that you
implemented to facilitate close communication?
A: For example, in our everyday work, we
regularly discuss sales progress management
and technical development. Furthermore, PLAID
has been speaking at events hosted by Google
Cloud, where we introduce solutions developed
using Google Cloud’s features44

④ PLAID, Inc. accepting a minority investment from

Minority investment

Google International LLC(PLAID x Google, 2019)

Software/information

PLAID aims to deepen its collaboration with Google and continue to develop further solutions and expand overseas.
For Japanese IT companies, collaboration through investment from foreign companies can be an effective option
for global expansion
Future vision for collaboration

Ideal collaboration between Japanese andforeign companies◼ Acceleration of solutions due to Google’s support◼ Foreign company support for Japanese IT companies’

areas such as AI and machine learning, and this support
is being utilized in the Google Ads customer match
integration feature of ”KARTE Signals”, which uses
customer data to optimize ad delivery. Developing suchfunctionality would be difficult when using Japanesetechnology alone, so with the support of a global IT
company like Google, we were able to accelerate thedevelopment of solutions⮚ We would like to continue to deepen our collaboration with
Google and promote the development of our own
solutions, including ”KARTE”⮚ Some IT vendors, including Google, have established⮚ Google has provided the company with technical support inglobal expansion

Japanese subsidiaries, and it is conceivable that suchforeign companies will collaborate with Japanesecompanies to help the Japanese companies expand
globally⮚ We believe that this type of collaboration, where foreigncompanies provide financial support in the form ofminority investment, collaborate on the technical side,
and also provide support for expanding overseas, could
be one option for Japanese IT companies upon looking to
expand overseas◼ Expansion overseas in collaboration with Google⮚ By having meetups and meetings arranged at overseas

events hosted by Google, we have had the opportunity to
exchange technical ideas with engineers from American
technology companies and the data analytics team of a
global cosmetics company.
⮚ When introducing ”KARTE” to overseas subsidiaries of global
Japanese companies in the future, we hope to leverage
Google's globally recognized branding(PLAID)(PLAID)* (Copied from previous page) KARTE: A CX (customer experience) platform developed and provided by PLAID. It is strong in customer data analysis and visualizes the real-time behavior of
people using websites and applications. PLAID is rolling out a variety of products based on customer data analyzed by KARTE to improve the customer experience at all points of contact.

45

⑤ Establishment of ARISE analytics, inc.
(KDDI x Accenture, 2017)

Joint venture
Software/information①Issues②Objectives

Although KDDI had possessed customer data (big data) fromits various communication and non-communication
businesses, it faced challenges in utilizing the data andsecuring the necessary personnel to further improve thecustomer experience

KDDI had been receiving support for data utilization forsome time, and began collaborating with Accenture, which
had know-how in both data science and consulting

KDDI’svisionKDDI’schallenges◼ KDDI was aiming to improve the value of customer
experience by analyzing customer behavior andpurchasing data obtained from the services it provided,
identifying appropriate customer needs, and providing
services at the optimal time
◼ In this way, KDDI aimed to increase the rate of continued
use of its services and to boost sales by creating new
data businesses◼ Acquisition of data utilization know-how in the KDDIGroup
◼ Securing professionals who were able to analyze data(the company was aware that recruiting and training
human resources at the company would take aconsiderable time)③ Process
ARISE analytics did not only remain a subsidiary, but wasinstead positioned as a company responsible for promoting
data utilization across KDDI, thereby promoting
collaboration
Promote data utilization throughout KDDI
Transfer data utilization know-how
Resolve business challenges through data utilization technology◼ ARISE analytics has played a central role in developing and expandingKDDI's customer data and marketing infrastructure◼ ARISE analytics' data utilization technology was used to solve KDDI's
management challenges. For example, through preparing a curriculum forKDDI’s DX human resources training program “KDDI DX University,” datautilization know-how was transferred to KDDI
◼ ARISE analytics and KDDI's president regularly have monitored theprogress of data utilization across KDDI

◼ KDDI had been receiving support from Accenture in utilizing data inmarketing its own services. Therefore, it understood Accenture’s
capabilities and had already fostered a relationship of trust◼ Accenture had the know-how in both data science and consulting
necessary for KDDI's data utilization goals◼ KDDI anticipated that Accenture would be a valuable partner in supportingKDDI’s digital transformation by taking full advantage of Accenture’s deep
knowledge and experience in the field of analytics which was cultivatedboth in Japan and overseas, as well as its world-leading technologies andmethodologies◼ Since it takes time to recruit and train professionals from square one,
KDDI “bought time” by collaborating on a JV with Accenture④Outcome
KDDI has accumulated know-how on data utilization, anddata utilization has become widespread in the marketing ofexisting services. The number of employees also increased◼ Through collaboration between ARISE analytics and KDDI in KDDI's
business, a culture of analyzing and utilizing data has taken root (datadriven)‒ As compared to before the collaboration, the company has
become now able to carry out statistical verification based on
detailed data for prototyping services and promotions‒ The company also implements rapid business feasibility testing
when launching new services◼ ARISE analytics has increased its workforce from around 50 to roughly
500 employees, and is now hiring more than 10 new graduates each year
for data analysis◼ Also the collaboration realized training of DX human resources at KDDI
‒ Clarification of job descriptions in KDDI’s job-based HR systemand provision of a training program‒ Development of data analysis human resources through KDDI DX
University46

⑤ Establishment of ARISE analytics, inc.
(KDDI x Accenture, 2017)

Joint venture
Software/information

Point① The management team positioned the joint venture (ARISE ② ARISE analytics is not only involved in KDDI Group's data
analytics) as responsible for promoting data utilization
utilization operations, but also in the KDDI Group's DX
throughout the entire KDDI Grouphuman resources development◼ ARISE analytics has been expected to take a role in promoting datautilization throughout the KDDI Group, so that ARISE analytics would not
become a subsidiary to which the KDDI Group’s data utilization work is not
simply delegated◼ As the company is expected to play a role in promoting data utilization
throughout the KDDI Group, the parties will collaborate on creating thecurriculum for ”KDDI DX University”, which is the KDDI Group's DX humanresources development program, and on data utilization in KDDI's business◼ By establishing a meeting body where ARISE analytics and the president ◼ ARISE analytics contributed to KDDI with respect to the development of DX
of KDDI regularly and directly review the progress of data utilization
human resources at KDDI and in-house data utilization by transferring
across the KDDI Group, ARISE analytics contributes to promoting data
and accumulating data utilization know-how
utilization across the KDDI Group

Points that were thought out pre- and post-deal
Pre-Deal(KDDI)

Post-Deal
Q: Was there anything in particular that you wereconscious of upon collaborating with Accenture?
A: Simple collaboration or support for data analysis
can be achieved without forming a joint venturecompany, but, by investing capital in a joint
venture, KDDI aimed to ensure that Accenture
would be more committed to promoting KDDI’sdata utilization
Q: How did the situation change as a result?
A: We learned about best practices and gained
data analysis know-how from Accenture, which
helped to resolve the issue of a lack of humanresources for data analysis(KDDI)

Q: How did the situation change with ARISE
analytics positioned as the entity for promoting
data utilization throughout the KDDI Group?
A: KDDI Group would not accumulate knowhow on data utilization, if it simply delegatesdata utilization of KDDI Group to ARISE analytics.
However, by ARISE analytics promoting datautilization throughout the KDDI Group, theadvanced knowledge and technology in the field ofanalytics that Accenture has cultivated both inJapan and overseas is gradually being absorbed
into the KDDI Group47

⑤ Establishment of ARISE analytics, inc.
(KDDI x Accenture, 2017)

Joint venture
Software/information

Following the establishment of ARISE analytics, KDDI has been leveraging the knowledge and otherbenefits it has gained from its collaboration with Accenture to develop and secure in-house DX humanresources through the establishment of KDDI DX University and the introduction of a job-based HR
system. Also, KDDI has been promoting in-house data utilization

KDDI DX University (KDU)

Job-based HR system◼ As KDDI has promoted data utilization across the group, it hasestablished the DX human resources development program"KDDI DX University (KDU)" with the aim at cultivating DX
human resources within the company◼ For data science-related human resources, a job description detailingthe work of a data scientist under the job-based HR system wasestablished for recruiting new graduates◼ Established a system where employees understand the skills requiredin the market and acquire data science skills◼ KDU is a learning platform which realizes the development* ofin-house human resources to promote DX business, which will
become a core business at KDDI, and internal DX*Job types for development:① Business development job type: Accomplishing missions related to
management issues② Consultant & product manager job type: Realizing business reforms③ Technologist job type: Leading IT system renewal incorporating
cutting-edge technology④ Data scientist job type: Realizing plans based on data, etc.
⑤ Experience architect job type: Creating the best customer experience◼ KDDI has established a system to train human resources incharge of data utilization within the company, which also leads toincreased employee motivation◼ In response to changes in the external environment, such as"accelerating digitalization" and "the age of the 100-year lifespan,"KDDI is introducing a job-based HR system to clearly define
duties and skills, and to accelerate employee growth throughperformance-based evaluation and compensation◼ Evaluation system: With the aim of "maximizing results" and"developing individual capabilities," evaluations are conducted basedon "achievement/challenge evaluation," "capability evaluation," and"human resource review"48

⑥ KOMASA KANOSUKE DISTILLERY accepting a minority

investment from Diageo plc (KOMASA JYOZO x Diageo, 2021)

Joint venture
Food products①Issues②Objectives

KOMASA JYOZO started its whisky business in response to
the situation that Japanese shochu culture had not takenroot in the overseas market. The company aimed to expand
its business into overseas markets as a Japanese whisky
brand

Two years after starting the whisky production, a VC from
Diageo visited the distillery, leading to the idea ofcollaborating with Diageo to provide funding and strengthen
the company's organizational structure◼ For consumers outside Japan, there has been no culture of drinking distilled
alcohol bevelage with meals, so shochu was unfamiliar. In 2014, thecompany received an inquiry from a Scottish trading company about importingoak barrel shochu “Mellow Kozuru,” but ultimately the order was not placed◼ On the other hand, whisky has become a Changes in Shochu and whisky export value“common language” with its worldwide(Unit: 100M yen)
Source: National Tax Agency
popularity, and there has been an increasein the amount of whisky export value from Product 2017 2018 2019 2020 2021
Japan. In order to establish KOMASAJYOZO as a globally recognized
136
150
195
271
461
distilled spirits brand in the "Japanese Whisky
Grewapprox.
3.4x
overwhisky" category, which is also
five years
popular overseas, the company started
its own whisky business in 2017
◼ Since whisky production takes time,
Shochu 15.4
15.3
15.6
12.0
17.5
funding was required for capital
investment in facilities such as distilleries,
as well as for marketing◼ Representatives from Diageo’s VC firm (Distill Ventures) visited the
KOMASA KANOSUKE DISTILLERY , and after talking with the distillery
staff Diageo approached the company about a collaboration. After two years ofnegotiations, the company selected Diageo as its partner company③ Process④Outcome

The company utilized appropriate external businesses andnegotiated for collaboration. Hiring global professionals withstrong sales and marketing skills to strengthenorganizational structure for collaboration

Since the start of collaborating with Diageo, the company
newly hired approximately 10 global professionals. Also thecompany developed a new product in collaboration with
Diageo, which is a combination between Japanese whisky and
Scotch whisky

Building acollaboration
framework◼ Taking advantage of the opportunity presented by thecollaboration with Diageo, the company has strengthened its
organizational structure by recruiting global professionals
with advanced language skills and marketing capabilities
through multiple recruiters, including foreign-affiliatedcompanies◼ When exhibiting at whisky events, the company sometimes
tends to hire those people who have become fans of the
KANOSUKE brandPractical
adjustments◼ English is the primary language of communication
between the two companies’ management teams◼ Diageo is only involved in the management through theparticipation of its directors on the board of directors◼ While there are cases where Diageo provides marketing advice
at board of directors meetings, in general the operations arehandled by the KOMASA KANOSUKE DISTILLERY team inorder to utilize the uniqueness of the company◼ The negotiations during this period were conducted primarily in English, which
made it difficult to coordinate. Therefore, they obtained help from appropriate
external experts such as financial advisors, lawyers, and tax accountants
to proceed with the negotiations, and decided to spin off the whisky businessand create a joint venture company◼ The partnership began for the purpose of not only providing funds needed for thewhisky production and marketing for establishing a new brand, but also forsupporting of procurement, sales, marketing, and branding activities in
the form of VC from Diageo① Acquisition of global professionals◼ The type of organizational structure that was necessary for KOMASA KANOSUKEDISTILLERY was discussed with the VC staff, and hiring of personnel began after
narrowing the conditions down to strengthening the sales, marketing, and financedivisions in particular. The president himself successfully recruited approximately
10 global professionals, and thereby the company was able to build a system thatwould allow the brand to communicate its value both in Japan andinternationally and grow sustainably◼ In the future, the company is considering dispatching personnel to Diageo’s
distilleries in Scotland to study whisky making for several years② New product development◼ The barrels used for manufacturing KANOSUKE whisky are sold to Diageo for theuse of Diageo’s distilleries, and Diageo has released a brand with a limited
number of bottles as a new product. The company will work closely with other
Diageo partner companies to ensure a system that facilitates information
49
exchange and new product development

⑥ KOMASA KANOSUKE DISTILLERY accepting a minority

investment from Diageo plc (KOMASA JYOZO x Diageo, 2021)

Joint venture
Food products

Point① The company selected an appropriate partner who canrespect the company’s brand and traditions and aim for a
global roll-out of products together

Diageo, the company shared an awareness that it was creating a brand together
on an equal footing② The company created a scheme that would be beneficial for
KOMASA JYOZO, the parent company, as well as KOMASAKANOSUKE DISTILLERY◼ In order to advance collaboration, it is necessary to objectively analyze theenvironment surrounding the company, formulate a corporate strategy, and thendetermine whether the strategy can be realized by the company alone or whether a ◼ In the whisky business, KOMASA JYOZO fulfills the following roles for KOMASA
partner company is required
KANOSUKE DISTILLERY◼ If a partner company is needed, it is necessary to search for a partner with whom
➢ Outsourced production for whisky bottling
the company can achieve its goals/vision together, and clarify the➢ Lease of warehouses and other buildings held by KOMASA JYOZO toKOMASA KANOSUKE DISTILLERY
management balance with the partner (such as clarifying the areas ofcollaboration when making various decisions), capital ratios, and internal➢ Managing exclusive distribution for KOMASA KANOSUKE DISTILLERY(KOMASA JYOZO purchases whisky from KOMASA KANOSUKE
responsibilities and authority. Although it is a unique process, it is important tocommunicate and discuss the company's initial goals and vision with the
DISTILLERY and sells it domestically and overseas)◼ Through the above relationship, KOMASA KANOSUKE DISTILLERY’s whisky business
partner company◼ The company was approached for collaboration by multiple companies other thanhas been schemed to also benefit the sales of KOMASA JYOZO , thus
Diageo, but the partnership with Diageo was decided since the company felt thatproviding benefits to the entire group
Diageo would respect KOMASA JYOZO ’s brand, quality, and autonomy. With
◼ Additionally, this also has realized the accumulation of know-how and branddevelopment for the KOMASA JYOZO group as a whole

Points that were thought out pre- and post-deal
Pre-Deal

Post-Deal
Q: What was the response of those around you when working
towards the collaboration?

KOMASAKANOSUKE
DISTILLERY

A: The liquor industry has a long history, and KOMASAJYOZO is a company based in the conservative
Kagoshima Prefecture, so there was a negative
perception of the company accepting a foreign capital
Q: How did you explain it to the people around you?
A: We were particularly careful with our explanations as to theacceptance of a foreign capital which was unprecedented in
the industry. Specifically, we explained that, as retail products,
including beverages, have become increasingly borderless,accepting a foreign capital is one way to promote Komasa
Jyozo's products overseas and ensure the healthy growthof the business

KOMASAKANOSUKE
DISTILLERY

Q: Were there any points that you devised while
collaborating?
A: KOMASA KANOSUKE DISTILLERY generally conducts its
accounting in accordance with Japanese accounting
standards, but in order to cooperate with Diageo it wasnecessary to comply with international accounting
standards, and therefore we utilized external experts
Q: Is there anything that SMEs should keep in mind whencollaborating with foreign companies?
A: It is important for managers to consider what kind ofworld they want to create through their company's
business and what kind of management they want to
conduct. There is not much difference between collaboration
between foreign companies and Japanese companies, except
in terms of the language, so it cannot necessarily be said that"there’s nothing to worry about just because in particular it'sa Japanese company”. We believe that SMEs have the agility
to act, which makes it easier to create a borderlessenvironment50

⑥ KOMASA KANOSUKE DISTILLERY accepting a minority

investment from Diageo plc (KOMASA JYOZO x Diageo, 2021)

Joint venture
Food products

By using whisky sales in Japan as a foundation, the company intends to expand its business overseas, and in the future,
the company hopes that this will lead to the overseas production and sales of shochu, thereby turning "shochu" into a
more common drink around the globe. To this end, the company intends to further utilize opportunities for interaction
and information exchange with Diageo and Diageo’s partner companies, and will also promote personnel development
and further new product development

Current state (post-deal)•••

Currently, KOMASA KANOSUKEDISTILLERY’s sales are primarily
whisky sales in Japan
In addition, the scope of thecollaboration is currently limited to thewhisky business, and the benefits ofthe collaboration have not yet beenrealized in the shochu business of
KOMASA JYOZO
Although the company is working on
new product development with Diageo
and Diageo’s partner companies,
there is room for further deepeningof interaction and informationexchange

Future policy leveraging collaboration with Diageo

Expand the whiskybusiness based on
domestic markets• While promoting sales expansion of whisky in Japan, the company
intends to leverage the domestic market to promote sales
overseas (primarily in Asia, with plans to expand into Europe
and America)• If overseas sales volume increases in the future, it would be possiblethat the investment will be expanded to add production lines or that
Diageo will manufacture the product overseas

Utilize thecollaboration forshochu thriving on
whisky• The company is considering a policy to develop the market byproducing and selling shochu overseas, starting with overseas
sales of whisky• By producing shochu locally overseas, the company hopes to turn"shochu" into a more common drink around the globe. When doingso, it would provide shochu-related know-how to Diageo

Further utilize
opportunities forinteraction andinformationexchange• The company plans to further utilize opportunities for interaction andinformation exchange, such as sending personnel to Diageo's Scottish
distilleries to have staff learn at Diageo, and selling collaborative
products with partner companies from the KOMASA KANOSUKEDISTILLERYKANOSUKE DISTILLERY (KANOSUKE DISTILLERY official website: https://kanosuke.com/visit-us)51

⑦ JTB System Solution accepting an investment fromIBM Japan, Ltd.(JTB x IBM Japan, 2021)

Joint venture
Software/information①Issues②Objectives

JTB has been aiming to further promote digitaltransformation and strengthen its IT human resources, while
IBM has been aiming to build continuous relationships withJapanese companies in the IT field

JTB issued an RFI. IBM's proposal was evaluated positively
as providing support for enhancing JTB Information Systems
functionality and JTB’s digital transformation◼ JTB has aimed to promote DX and strengthen its
IT human resources◼ IBM has been involved in the development andoperation of JTB's core systems since the 1960s,
and as a technology company leading thepromotion of digital transformation globally, it has
aimed to actively contribute to JTB's digitalization◼ The main reason that JTB selected IBM as a partner for collaboration wasthat they assessed that IBM’s proposal encompassed support for enhancing
the functionality of JTB Information Systems and JTB’s digitaltransformation◼ Specifically, IBM made a proposal to JTB on “IT transformation”, “digitaltransformation”, and “business process transformation in the IT and digitalfields”③ Process④Outcome

The company implemented a QA review process equivalent
to IBM’s. The company defined processes for identifying
issues and solutions. The company held one-on-one
meetings (including those between the president and each
employee) and roundtables at various levels

The company leveraged IBM’s know-how to improve thedigital transformation of IT system development as well as
effectively manage costs. The company utilized IBM’s
training programs to promote development of IT personnel◼ Liaison meetings were held once a month for employees. These meetings
purported to explain the necessity of strengthening the IT planning function
to each employee. Communication was encouraged, whie allowing the timefor Q&A.
◼ In order to clarify the issues, one-on-one meetings and roundtables were held
between the heads of the five divisions, department heads, and othermanagers◼ In addition, the president listened to requests from each employee andimplemented measures accordingly (details provided in the next page)•◼ The company introduced the "QA review process," an IBM standard
process for system development, which contributed to improving thequality of the system development. This process has been operated by a
dedicated organization independent of the delivery organization.
◼ By using the globally shared learning platform "Your Learning," training
programs that matched the characteristics of each employee became
available at any time, which significantly improved the training andlearning time

Employees’ requests were prioritized and classified, then discussed by
the relevant departments and the measures were implemented52

⑦ JTB System Solution accepting an investment fromIBM Japan, Ltd.(JTB x IBM Japan, 2021)

Joint venture
Software/information

Point① IBM has supported JTB in formulating the enterprisearchitecture for the entire system, and during the systemdevelopment phase, IBM and IJDI have collaborated insupporting multiple development projects② As a result of introducing IBM standard processes, IBM
contributed to improving the quality of IT systemdevelopment③ The company also adopted IBM’s HR system (including
IBM’s professional certification), and clarified employees’
desired careers and then provided support such as training.
This contributed to enhanced employees’ engagement andmotivation■ IBM’s HR system was adopted (IBM’S professional certification). This defined theprofessional roles of project managers and technical specialists. Employees’ training
started from 2022 with the aim of all employees being certified as “professionals” by
the end of 2024#①②③

Type of professional
Industry
Practice
Profession④

Business coreContent
Travel industry knowledge
AI, cloud, etc.
Specific skills
Leadership, problem solving
abilities, etc.

Points that were thought out pre- and post-deal
Pre-Deal(IJDI)

Q: Were there any difficulties when working towards thecollaboration?
A:The difficulty related to introducing the IBM standard
processes. In order to implement these best practices,
awareness-raising activities had to be carried out mainly by
the dedicated division in charge of this initiative
However, initially there was a confusion about the differenceswith the previous ways of thinking and methods, and the idea
was not accepted
Q: How did you promote the IBM way of thinking?
A: We held monthly meetings for employees engaged inoperations, maintenance, and development to explain theissues of individual optimization and the importance oftransitioning to overall optimization, and we referred to theexamples from other companies. We made some time
available for Q&A.
We held one-on-one meetings (30 mins each) with all 400
employees, and gained understanding from employees bymaking time to talk with each of them

Post-Deal(IJDI)

Q: Were there any points that you devised while
collaborating?
A: The QA review process is a process in which each QA stepis reviewed from the perspectives of technology, project
management, and business. It is a process to ensure thesoundness of the project by reviewing each stage from thetime of proposal creation to the completion of the project,including the validity of the solution and technical risks, basedon the development scale and risk assessment.
Project estimates were also reviewed by a third-party
dedicated department in accordance with this review process,which allowed for even greater accuracy.
The management team communicated closely with the front
lines. In order to promote the strategy, one-on-one meetings
and round table meetings were held with high frequency.
Q: Were there any other points that you devised?
A: An awards program was created. A president’s award andgeneral manager’s award are presented once per quarter.
Presenting the president's award once a year also helps toenhance employees’ motivation53

⑦ JTB System Solution accepting an investment fromIBM Japan, Ltd.(JTB x IBM Japan, 2021)

Joint venture
Software/information

Diversity efforts
Promoting diversity with a female ratio of 44%• Even when the company was still JTB System Solution, the ratio of females was over 40%,and there were well-developed systems including childcare leave• The ratio of female managers is approx. 25.6% as of Aug. 1, 2023
• Gender-free childcare leave is available• In response to the desire to continue working from home even after the end of the Covid-19
pandemic, the company has a hybrid work system that enables an easy environment for
employees to work. However, to prevent younger employees from feeling isolated, they areencouraged to come to the office once per week

Future vision
Promote the development of personnel who are IT professionals that support DX promotion,with the aim at becoming a unique digital innovation company leading the transformation in
the tourism industry
Moving forward, IJDI will leverage the know-how accumulated at JTB and the extensive track recordof IBM to achieve the following goals• Contribute to the enhancement of JTB’s business value by utilizing new technologies• Contribute to the creation of new businesses and services which leverage the next generation ofexisting systems and digitalization• Provide a high-quality IT environment that supports business• Provide high-quality, highly reliable IT services, and continually improve productivity• Development of highly specialized IT personnel• Development and provision of personnel well-versed in IT for the tourism industry54

⑧ Establishment of TG Octopus Energy Co., Ltd.
(Tokyo Gas x Octopus Energy, 2021)

Joint venture
Other retail①Issues②Objectives

Octopus Energy was aiming for further business expansion,and it was searching for a partner in Asia

Tokyo Gas was attracted to Octopus Energy, which had been acenter for attention, and considered collaborating with
Octopus Energy to acquire customers through a better
customer experience by utilizing its advanced digital platform◼ Following the liberalization of theelectric power retail market in 2016,
the company entered the electricretail business and established aleading position among new powercompanies, mainly in the Tokyo
metropolitan area, by utilizing its
existing gas retail sales network.
However, the company was aiming tofurther expand its business◼ Tokyo Gas also needed a system thatwould enable it to flexibly create
tariffs and provide a better
customer experience which would
be appropriate for nationwide
expansion◼ Octopus Energy launched its
electric retail business in 2016 andhas expanded its operations to 15
countries, mainly in Europe, as
well as the United States andOceania◼ Octopus Energy was considering toenter into the Asian market andwas looking for a business
partner who could develop
customers locally and comply
with local laws and regulations(Octopus Energy’s characteristics & strengths)◼ Octopus Energy had been a center for attention in the UK, following thecountry’s liberalization of electric power retailing for utilizing its proprietary
digital platform “Kraken” to realize a better customer experience andstreamline operations.
◼ The business started in 2016, and in 2020 at the time of the alliance with
Tokyo Gas had reached at 1.8 million contracts. Today it has reached at 6.5
million contracts and has the No.1 share in the UK (approx. 20%).
(Background/objectives from Tokyo Gas’ perspective)◼ It was informed that in the UK, where the electricity market had already beenliberalized, Octopus Energy was looking for a business partner in Asia,
and Tokyo Gas approached Octopus Energy◼ Tokyo Gas onsidered collaborating with the company for the purpose of
expanding business by utilizing “Kraken” for a better customer
experience and streamlined operations③ Process④Outcome

In addition to deepening mutual understanding throughdialogue and building a relationship of trust, the company
adopted Octopus Energy’s brand and corporate culture todevelop a new business model

While utilizing “Kraken” to expand and enhance their electric
power retail services, the company also developed digitalsavvy personnel and transformed the corporate culture at
Tokyo Gas through the collaboration◼ Building a trusting relationship➢ Due to differences in language and corporate culture, Tokyo Gas and Octopus
Energy repeatedly discussed their respective visions and what theywanted to achieve by establishing the joint venture (although the joint
venture was established during the Covid-19 pandemic, they frequently
communicated online)◼ Adopting Octopus Energy’s brand➢ Since the aim was to develop the business as a "new brand" of the Tokyo Gas
Group, the company decided to adopt the Octopus Energy logo and brandwithout projecting any features of Tokyo Gas and matched the way of
doing business to the Octopus Energy corporate culture◼ The company expanded and enhanced the electric power retailing with afocus on renewable energy through the JV➢ The company adopted Octopus Energy’s digital platform, “Kraken”, torealize a better customer experience while keeping operational costs down
➢ The company developed a nationwide electricity retail business acrossJapan with a focus on renewable energy, while utilizing the digital marketingknowledge of Octopus Energy➢ “Kraken” realized a "concierge system" that allowed the same operator tohandle all kinds of customer inquiries, and thus the company became
able to clarify the point of contact and enhance services

55

⑧ Establishment of TG Octopus Energy Co., Ltd.
(Tokyo Gas x Octopus Energy, 2021)

Joint venture
Other retail

Point① Promoting mutual understanding by matching visions andthe objectives for establishing a joint venture company◼ After contacting Octopus Energy, Tokyo Gas held dialogues with Octopus
Energy at multiple levels from Tokyo Gas executives to the staff level◼ Before entering into negotiations on the terms of establishing the joint venture,
the two companies repeatedly discussed their visions and what theywanted to achieve in Japan through the joint venture. This helped them tobridge the differences in corporate culture and deepen mutual understanding,even amid the Covid-19 pandemic◼ This enabled them to build a relationship of trust, and they were able to movethe business forward smoothly without any conflicts over management policies,etc.

② Smoothly adopting the philosophy, business know-how,and systems of the partnering UK company◼ In terms of the business operation of the JV, the company proceeded byreferring to the Octopus Energy philosophy and methodologies rather than themethods of Tokyo Gas.
◼ The company promoted business expansion and the enhancement of services
in line with the Japanese business environment while utilizing Octopus
Energy’s business know-how and operational strengths to the maximum
extent possible③ Speedy top-down decision-making for DX promotion◼ In establishing the joint venture company, there were concerns that Tokyo
Gas’ existing business would be in competition with the JV to secure
customers. However, on the basis that DX would enable the company torealize a better customer experience and streamlined operations with the aimof expanding the customer base, and Tokyo Gas decided to establish the JV
company emphasizing the benefits it presented to expanding the Tokyo Gas
Group’s business as a whole

Points that were thought out pre- and post-deal
Pre-Deal

Post-Deal
Q: Were there any difficulties you faced when launching
the collaboration?

(Tokyo Gas)

A: Since the Covid-19 pandemic was ongoing at thetime, it was extremely difficult to communicate. Whilewe were able to communicate online, the timedifference between Japan and the UK presented adifficulty, and there were restrictions on entry into
Japan. Therefore, we dispatched operators(customer service staff) to the UK, and there theylearned Octopus Energy’s operations and also we
met in a third country for discussions. In this way,
we were able to smoothly start business for the joint
venture company after UK members came to Japan.

(Tokyo Gas)

Q: What kind of points did you devised for theoperations?
A: We maximized efforts to recreate Octopus Energy’s
UK operations in Japan without changes. At Octopus
Energy, the top priority has been on customer
service by operators, and the company believes thatengineers and back office staff are there to improve
the way operators provide customer service. For
example, the office is arranged so that the operators'
work space is in the center, with the president's desk
nearby. In addition, because operators, engineers,marketers, etc. work on the same floor, any areas for
improvement identified by operators can be
immediately shared with engineers, etc., allowing
for quick corrections to be made using on-site
decision-making authority. This is how we realize abetter customer experience.

56

⑧ Establishment of TG Octopus Energy Co., Ltd.
(Tokyo Gas x Octopus Energy, 2021)

Joint venture
Other retailBy utilizing the digital platform "Kraken" to operate an electricity retail business focusing on
renewable energy, Tokyo Gas and Octopus Energy aim to improve customer satisfaction anddecarbonize Japan and transform the energy industry

Features and advantages of Kraken

Collaborative efforts◼ TG Octopus Energy has adopted and implemented in Japan the excellent
customer experience and operations that Octopus Energy has achievedin the UK◼ For example, even when customers make various inquiries (regarding
contract initiation, plan changes, troubleshooting, etc.) through various
channels (telephone, email, etc.), the same operator can quickly
respond to all inquiries using the "concierge system," thereby providing
an excellent customer experience◼ Octopus Energy utilizes its digital platform called “Kraken” to provide a
better customer experience and realize its streamlined operations. This
will provide a superior service to other companies◼ The system can quickly create various tariffs for each customer,
allowing the provision of electricity plans that would suit each customer◼ The system is highly scalable and flexible, and can be improved on adaily basis due to the ability to quickly alter specifications. The
company strives to respond quickly to suggestions for improvementfrom customers

Vision◼ TG Octopus Energy aims to further establish its brand and expand its customer base in Japan.
◼ The “Kraken” system was successfully introduced at TG Octopus Energy and was put to its effective use, and this lead to the decision to introduce the“Kraken” system at Tokyo Gas as well. Thriving on that Tokyo Gas and Octopus Energy engineers working together on collaborative projects, thecompany intends to lead DX human resource development and corporate culture reforms within the Tokyo Gas Group◼ In the medium to long term, the Tokyo Gas Group as a whole aims to provide services with high customer satisfaction and transform the energy
industry by bringing advanced digital technologies to the industry

57

⑨ Establishment of BASF TODA Battery Materials（TODA KOGYO CORP.× BASF 2015）

Joint VenturechemicalCompany overview（Excerpt from press releases**）■About BASF’s Catalysts Division
BASF’s Catalysts division is the world’s leading supplier of environmental andprocess catalysts. The group offers exceptional expertise in the development oftechnologies that protect the air we breathe, produce the fuels that power ourworld, and ensure efficient production of a wide variety of chemicals, plastics andother products, including advanced battery materials. By leveraging our industryleading R&D platforms, passion for innovation and deep knowledge of precious
and base metals, BASF’s Catalysts division develops unique, proprietary solutions
that drive customer success. Further information on BASF’s Catalysts division isavailable on the Internet at www.catalysts.basf.com.
■About BASF
At BASF, we create chemistry for a sustainable future. We combine economic
success with environmental protection and social responsibility. Around 111,000
employees in the BASF Group contribute to the success of our customers in nearly
all sectors and almost every country in the world.

Our portfolio comprises six segments: Chemicals, Materials, Industrial Solutions,Surface Technologies, Nutrition & Care and Agricultural Solutions. BASF generated
sales of €78.6 billion in 2021. BASF shares are traded on the stock exchange inFrankfurt (BAS) and as American Depositary Receipts (BASFY) in the U.S. Further
information at www.basf.com.www.basf.com.
■About Toda Kogyo Corp.
TODA KOGYO CORP. is specialized in the Wet Synthesis Technology of metal oxide, andmanufacturing coloring materials including pigments and toners, magnetic powdermaterials, ferrite materials and other various magnetic materials. We aim to expand ourbusiness globally along with our fundamental line to provide solutions to support society inthe aspects of information, environment and energy. TODA KOGYO CORP. hadconsolidated net sales of about 35.3 billion JPY in the fiscal year 2021, as well as about
1,303 employees at the end of 2021. More information on TODA KOGYO CORP. isavailable at www.todakogyo.co.jp.

TODA KOGYO CORP.

BASF(2015 press release)*

Kenneth Lane,
President of BASF’s
Catalysts division“BASF brings global strength in cathode active
materials to this new venture, together with a
150-year history of innovation. We lookforward to developing the business in Japan,
which is a global leader in lithium-ion battery
manufacturing and innovation.”(2022 press release) **"BTBM today is a leader for high nickel CAM materials ofsuperior quality and plays an important role in BASF’s
global production network for battery materials. This
investment at the Onoda site, already one of the world’s
largest calcination facilities for CAM, will support ourDr. Peter Schuhmacher customers’ ambitious growth plans in Japan andworldwide. We will introduce an innovative and proprietary
President, Catalysts
new production process allowing highest throughput rate
division at BASF
combined with consistent highest quality."＊ https://www.basf.com/jp/en/media/news-releases/global/2015/02/p-15-147.html** https://www.basf.com/global/en/media/news-releases/2022/07/p-22-294.html(2015 press relese)*

Shigeru Takaragi,
President of TODA
KOGYO CORP.

“With the formation of this joint venture we areready to respond in a flexible and timely
manner to the globally expanding cathodematerials market for lithium-ion batteries. BASF
and TODA will combine and mobilize resources
to take full advantage of our synergies so that
we can provide more innovative solutions tomeet customer needs and demands.”(2022 press release)**"With the further expansion of the Onoda site,
we are supporting the Japanese government’s
goal of strengthening the local supply chain.
Together with BASF, we are combining andmobilizing resources to take full advantage of
our synergies to respond to the fast-growing
demand for lithium-ion batteries."58

⑩ Establishment of Hitachi ABB HVDC Technologies, Ltd(currently
integrated into Hitachi Energy Japan Ltd.)(Hitachi, Ltd. x ABB, 2014 )Joint venture
Power/gas①Issues②Objectives

Hitachi Ltd. had issues in accumulating HVDC technologies andknowledge, (including voltage source converter-type HVDC ),and ABB had issues in entering into the Japanese market with
its HDVC business, due to the Japanese market’s peculiarities

The two companies began collaborating to leverage Hitachi'strusted reputation and presence in the Japanese market and
ABB's strengths in cutting-edge technologies, including HVDC,
to complement each other's weaknesses◼Since the 2010s, the marketization of electricity and the introduction of renewableenergy have accelerated overseas, and an increase in HVDC has been anticipated◼ ABB had a difficulty in entering the Japanese market due to its peculiarities (businesspractices, standards, language, etc.), but it was able to build a win-win relationshipwith Hitachi, which had a strong reputation and presence in the Japanese market◼ Hitachi, Ltd. felt that the two companies, both of which started in the mining businessmore than a century ago, had a good chemistry and considered collaborating with
ABB after understanding the strengths of both companies◼After the Great East Japan Earthquake, discussions on strengthening gridinterconnections began in Japan as well
ABB (at the time of the started ofcollaboration)

Strengths• Presence in Japanese market• Familiarity with business practices such as
dealing with domestic power companies,
reliability levels, warranty details, etc.
• Locations in Japan (maintenance staff andtechnicians)• No.1 global share of HVDC
• Cutting-edge technologies including
VSC HVDC

Challenges

Hitachi, Ltd.

• Stagnation of technological development,
including VSC, due to the stagnation of thedomestic HVDC market since 2000
(reduction of framework)• Struggles in HVDC exports• Difficulties entering the Japanese market
due to its particularities (businesspractices, standards, language, etc.)

Hitachi, Ltd.

ABB

• Highly reliable technology and control andprotection technology cultivated throughparticipation in almost all projects in Japan

HVDC
converter
control
technologies• World-leading HVDC track record including
LCC and VSC, and the technical capabilities
to support numerous projects andcontinue making further progress• Extensive experience in Japan• System engineering that realizes reliability
and operability that meets Japanesedemands

Systemengineering• Track record of responding to broad global
needs, and system engineering know-how• Technicians’ ability to respond swiftly at Japan
locations, and reliability for long-term
maintenance support

Maintenancesupport• Track record of long-term maintenancefor HVDC sites worldwide, delivered sincethe 1960s③ Process④Outcome

The CEO and COO, both from the parent companies, havemanaged the company as "representatives of the joint venturecompany" rather than as representatives in the interests of theparent companies

In the eight years since the collaboration began, sales in Japan
have grown approx. tenfold from several hundred million yen.
The company aimed at further growth due to the increase in
HVDC in Japan◼ Hitachi, Ltd.'s Chairman and CEO, Mr. Nishioka, and ABB's President and COO, Mr.
Larsson, have progressed the collaboration◼ They provided a thorough explanation to relevant
parties from both parent companies about thetechnologies, market and customer situations ofboth companies, as well as the significance anddirection of the collaboration. After several years ofsteady communication, a relationship of trust was
built between the parent companies◼ Employees were seconded from both parent companies◼ Being involved in overseas projects contributed toincreased interactions with overseas technicians andenhanced employees’ motivation
Hiroaki Nakanishi, then Chairman and CEO of Hitachi, Ltd. / Ulrich◼ The company has gained knowledge about overseas policies and schemes for
introducing HVDC from ABB and overseas transmission system operators (TSOs)
and others. For example, knowledge on what scheme should be used to realize
long-distance interconnection, and how risks should be hedged◼ Before the establishment of HVDC Technologies, there were few HVDC -related
projects, and sales in Japan were only a few hundred million yen, but following
eight years since the start of the collaboration, the sales has grownapprox. tenfold◼ This collaboration also helped Hitachi, Ltd. to acquire ABB's powertransmission and distribution division, making it a wholly owned
subsidiary under Hitachi Energy, and expanding its operations overseas

Spiesshofer, then CEO of ABB
Hitachi Brand Channel YouTube video "Hitachi and ABB Press Conference Hitachi", 2014/12/17
https://www.youtube.com/watch?v=8zcyJ4QmqLU

59

⑩ Establishment of Hitachi ABB HVDC Technologies Ltd. (currently
integrated into Hitachi Energy Japan Ltd.)(Hitachi, Ltd. x ABB, 2014 )Joint venture
Power/gas

Point① Strategic collaboration to incorporate cutting-edge overseas ◼ As representatives of HVDC Techno, the CEO and COO managed the businessand conducted negotiations, which significantly contributed to avoiding
technologies and deployment thereof in the domestic
internal conflicts of interest, maximizing HVDC Techno’s profits, andmarketbuilding a relationship of deeper trust◼ Prior to the collaboration, the company conducted technical due diligence on③ Careful internal coordination and coordination with the
ABB's HVDC technology and confirmed that it was cutting-edge, high-quality
foreign company, taking into account the peculiarities of thetechnology overseas, before bringing the technology to the Japanese market
Japanese market
and developing the HVDC business◼ The company expanded business by incorporating advanced overseas
technologies and know-hows through collaboration and deployed suchtechnologies in the domestic HVDC market, which was expected to grow

②Building a relationship of trust between CEO and COO of thejoint venture company and communication with the parent
companies◼ The Japanese market had peculiarities, such as its own standards andpolicies regarding technology disclosure, which posed challenges for overseas
suppliers, including ABB. To avoid any discrepancies post-deal, Hitachi
made the peculiarities known and both companies aligned policies before
the collaboration began. Also, when asked about details by a business
partner, after sorting out the details that needed to be confirmed internally,
Hitachi explained to ABB the special conditions and data requirements in
Japan

Points that were thought out pre- and post-deal
Pre-Deal

Post-Deal

Q: Were there any points that you devised while collaborating?

(Hitachi)

Q: How did the situation change as a result?

Q: Were there any special considerations working towards thecollaboration?
A: We maintained thorough and transparent communication withthe stakeholders involved in the parent companies(Hitachi)

Q: How did the situation change as a result?
A: We were able to get to know each other better, including thedetails of the technology and the particularities of the Japanesemarket
Q: Were there any points that you paid particular attention to fordirectors and employees?

A: As mentioned above, we explained why we decided to establish
a joint venture with ABB, and that there were benefits for
Hitachi after conducting thorough technical due diligence

A: We devised a way to explain the particularities of the Japanesemarket to Hitachi Energy and its overseas business partners,
including its suppliers. In order to explain why data is needed,
we try to provide a logical explanation in English of theJapanese market and the situation of customers

A: We are able to hear detailed explanations from overseas
business partners (engineers and suppliers) and can provide
clear explanations of the system and equipment
specifications, costs, etc. to Japanese customers, thereby
gaining their understanding
Q: Looking back on this collaboration, are there any points to learn
from or areas you would like to improve on?
A: Language ability and communication remain issues even now.
In order to overcome the peculiarities of the Japanesemarket and fill the culture gap, we are continuing to give
briefings and communicating in English, and employees aregradually getting more proficient in English

60

⑩ Establishment of Hitachi ABB HVDC Technologies Ltd. (currently
integrated into Hitachi Energy Japan Ltd.)(Hitachi, Ltd. x ABB, 2014 )Joint venture
Power/gas■ BackgroundThe construction of VSC HVDC was expanding rapidly in the world, and the Japanese HVDC market is also expected to grow in the future
HVDC systems require optimal system design to suit various required specifications, climates, geographical conditions, legal regulations, etc.
Furthermore, a project period spanning several years from system analysis through design, production, testing, and service is expected tolast for several decades or more. Therefore, technical capabilities and project management capabilities based on an extensive track recordand experience are key factors for the project’s success•

Hitachi, Ltd. has taken advantage of the success of its joint venture HVDC Technologies in the Japanese HVDC business to promote
overseas expansion (for example, Hitachi, Ltd.'s acquisition and integration of ABB's power transmission and distribution division in
2020)

•

The company has been expected to continue to lead decarbonization in Japan and the world by utilizing cutting-edge technology basedon Hitachi, Ltd.'s extensive track record and know-how in the Japanese market and the knowledge and experience in the global market
gained from ABB’s power transmission and distribution division■ Growth of the HVDC market, Hitachi, Ltd.’s track record, andfuture policies
The HVDC market, including VSC HVDC, is expected to expand globally

Global VSC HVDC market (forecast)
(GW)
250

192

200

As many VSC HVDC projects are already underway in the world,
knowledge and technology obtained in the global market will be utilized
to the domestic market to continue leading the world’s decarbonization
efforts■ Background to Hitachi, Ltd.’s acquisition and integration of
ABB’s power transmission and distribution division

150
82

100
50

37

0
2020

2025

2030

(Year)

December 2014

Hitachi, Ltd. and ABB announced the establishment of a joint venture in the HVDC business (Hitachi ABB HVDC Technologies (“HVDC
Technologies)) *To handle HVDC projects in Japan

July 2020

Hitachi, Ltd. acquired ABB’s power transmission and distribution business (investment ratio 80.1%) (Hitachi ABB Power Grid)

October 2021

Hitachi, Ltd. made Hitachi ABB Power Grid a wholly owned subsidiary
Hitachi ABB Power Grid renamed to Hitachi Energy, and Hitachi ABB HVDC Technologies renamed to Hitachi HVDC Technologies

October 2023

Hitachi Energy made Hitachi HVDC Technologies a wholly owned subsidiary

December 2023

Dissolution of Hitachi HVDC Technologies

Created based on materials provided by Hitachi, Ltd.

61

⑪ Morgan Stanley and Mitsubishi UFJ Financial Group's Strategic Alliance andJoint Investment in a Securities Subsidiary in Japan (Mitsubishi UFJ Financial
Group x Morgan Stanley , 2010)

Joint venture
Securities①Issues②Objectives

MUFG was aiming to strengthen its investment banking
business and to capture cross-border deals in particular; MS
was aiming to raise its presence in Japan and capture moredealsThis collaboration began when MUFG made an investment in
MS in 2008. A mutually complementary relationship wasplanned, under which MUFG would provide an extensive
domestic customer base and MS would provide its global
network and high-quality products and services◼ In Japan, MUMSS and MSMS* have leveraged MUFG's customer base in Japan andMS's global network for M&A and overseas underwriting of stocks and bonds tocomprehensively respond to customers' financial needs◼ MUFG had an extensive customer
base in the Japanese market andwas looking to gain a competitiveedge in the securities sector◼ In particular, there was an awarenessof issues in their investment banking
operations, and the company wasseeking to strengthen its
framework for promoting largescale deals, including cross-borderdeals◼ MS had a global network for M&A
and underwriting of stock and bondissuances◼ As the players in the Japanese
securities industry have become
more deeply rooted, the company
aimed to increase its presence inJapan, capture deals in Japan,
and expand its Japanesebusiness◼ Combining MUFG's Japan customer base with MS's global network enabled
the joint venture to take on larger scale deals◼ MUMSS leveraged MS's know-how to strengthen its wealth management
services (comprehensive management services for personal assets for thewealthy), which were still developing in the Japanese market at the time ofstarting the collaboration*A joint venture established by MUFG and MS with voting rights of 49% and51%, respectively③ Process④Outcome

Close collaboration including with top management andpersonnel exchange through, e.g., the dispatch of employees
from MUFG to MS

The collaboration resulted in the ranking as No.2 in theJapanese securities industry when combining the net
operating revenue of MUMSS and MSMS, which involved global
deals of Suntory Holdings, Recruit Holdings, etc. as such◼

◼

There have been a dispatch of directors from MUFG and MS. Discussions
were held in the areas of collaboration and the current state ofbusiness through steering committee meetings that discussed
business execution and discussions between the CEOs
At the frontline level, a trainee system was put into place to deploy
employees of MUFG and MUMSS to work at MS offices to absorb MS's
business know-how

◼

◼

◼

In terms of investment banking, bycollaborating with MS, the company isexpanding its global deals, such as
Suntory Holdings' cross-border M&A withBeam
In launching its wealth managementbusiness, the company utilized MS's
know-how to develop a digitalplatform. They realized timely proposals
that met the needs of customers in asset
management, etc.
Net operating revenue for fiscal year
2022 was 381.3 billion yen, ranking as
second in the Japanese market

62

⑪ Morgan Stanley and Mitsubishi UFJ Financial Group's Strategic Alliance andJoint Investment in a Securities Subsidiary in Japan(Mitsubishi UFJ Financial
Group x Morgan Stanley , 2010)

Joint venture
Securities

Point① Building an appropriate monitoring structure based oncross-governance of the two shareholder companies③ Earning customer’s trust by responding to increasingly
sophisticated and diverse financial needs◼ In addition to management control by the parent company, MUFG, and◼
monitoring as a shareholder, a corporate governance system has been
established to appropriately monitor activities by introducing crossgovernance, in which directors have been appointed from both companies whileclarifying decision-making authority and ownership② Compatibility between MUFG and MS’s corporate cultures

In the investment banking business, the company adopted a policy of "being
more locally rooted than any global competitor and providing more global
business value than any local competitor," and the company has responded
to the increasingly diversified needs of its clients with its ability to provide awide range of services for both large cross-border transactions and small andmedium-sized deals in Japan◼ As a foreign-affiliated company, MS had been doing business in the Japanesemarket for a long time and had a long-term vision of emphasizing contribution
to customers and added value proposals. This long-term commitment to its
customers and the Japanese market has been well suited to MUFG's
corporate culture, which led to the two companies' commitment to acollaborative partnership

Points that were thought out pre- and post-deal
Pre-Deal

Post-Deal
Q: Were there any special considerations working
towards the collaboration?
A: We placed importance on the merger
negotiation and discussion process, andthoroughly discussed the framework regarding
the business goals, scope, and approach,including what we are aiming for, what businessmodel we will use, and what structure we will havefor collaborating. While respecting Morgan
Stanley's approach to investment banking, weplaced an emphasis on creating a system andculture that would allow us to utilize each other's
strengths

Q: Were there any points that you devised while
collaborating?
A: Employees have widely diversified mentalities,
so rather than being one-sided about one setof values, we discussed what was fair and what
was the best and promoted the sharing andintegration of major values.
Specific initiatives have included improving the HR
system in the investment banking business, which
linked compensation to performance, as was thecase at Morgan Stanley

63

⑪ Morgan Stanley and Mitsubishi UFJ Financial Group's Strategic Alliance andJoint Investment in a Securities Subsidiary in Japan (Mitsubishi UFJ Financial
Group x Morgan Stanley , 2010)

Joint venture
Securities

Expanding the scope of collaboration from investment banking to "deepening the alliance strategy"
MUMSS and MSMS have been collaborating for over 13 years in the investment banking business between MUFG
and MS both in Japan and globally, and have expanded their collaboration to include wealth management, asset
management, and sales and trading for institutional investors
Following the collaboration between the two companies that began with the establishment of the joint venture,
MUFG Bank and MS began collaborating in foreign exchange trading operations through MSMS in order to leverageeach other's strengths and further cooperate with each other
Integrating MUMSS and MSMS and combining their strengths in the Japanese equities business for institutional
investors has enabled the provision of better customer service and enhanced competitiveness64

4. Columns, Definitions and Explanations of Various Terms
4.1 Column ①Ways by which the Japanese companies have overcome
p.66
corporate culture (business practice) differences with foreigncompanies
4.2 Column ②: Cautions based on the Dissolved Cases of Collaborations
or Joint Ventures with Foreign Companies
p.67
4.3 Column ③: Utilization of Collaborations and Joint Ventures with
Foreign Companies to Enhance Management at SMEs

p.69

4.4 Definitions and explanations of terms

p.70

65

Column ①
Ways by which the Japanese companies have overcome corporate culture(business practice) differences with foreign companies◼ When collaborating with foreign companies, many Japanese companies may sense the differences in corporate culture and business practices between
the two companies. In order to make collaborations and joint ventures successful and lead to a sustainable development, it is necessary to overcome
these differences and maintain appropriate communication, while progressing on business operations◼ Below, key points are identified for overcoming difficulties through ingenuity, based on an analysis developed through the interviews conducted

Specific examples of corporate culture (businesspractices) differences

Methods to overcome the differences Differences in employee culture and language
When we accepted foreign employees from our partner company, it tooktime for them to understand each company's corporate culture. In
addition, to deal with the language barrier, meeting materials had to beprepared in both Japanese and English◼Language support is provided to employees of the foreign company andassistance for their daily lives is also provided in Japan. Translation
application are also used to translate internal meeting materials into
Japanese and English (some companies also use interpreters). In
addition, in order to understand and accept foreign cultures, we holdsocial gatherings in the area around the company

 Differences in business approval process, etc.
As we progressed with product development with our collaborative
partner, we discovered that the internal approval processes and sense ofschedules differed significantly. While the foreign company was able todetermine important factors such as target costs at the concept stage,
their approach to risk was different from that of Japanese companies◼Development on methods and quality standards are closely coordinatedwith foreign employees and within Japan. The Japanese company may
predict risks in advance and proceed with the work ahead of time, andschedule would be coordinated according to the needs of the foreign
partner company

 Differences in industry-specific business practices
When foreign products and services into Japan are brought, due to thelack of a track record in the Japanese market, differences in businesspractice, particularly strict requirements for technical disclosure and theway of thinking about business conditions, may require a significant levelof explanations and disclosure of information that may not normally berequired in overseas markets◼Even before starting the collaboration, the company carefully explained
to the other foreign party the peculiarities of the Japanese market(requests for technology disclosure, etc.). When the company may
receive a question from a Japanese customer that the company may
need to confirm with its foreign partner, the company may coordinate
by internally summarizing the background of the question and thecustomer's needs and convey those to its foreign partner◼In addition, when it comes to matters that cannot be disclosed thatinvolve the company’s know-how, the company would carefully explain
the situation to the client Different perceptions of the market of entering the country
The marketing team of the partner company and our own company had
different understandings of the characteristics of the market in the
country we were expanding into, and initially there were differences in
our thinking and approach to our overseas expansion strategy◼By taking the time to communicate about the collaboration, thecompany was able to incorporate the overseas expansion and branding
strategies of the foreign partner company

 Differences in corporate culture or ways of doing business
There was a significant difference in the corporate cultures of theJapanese company and the foreign company. The foreign company had
an organization was run in which the business was operated in a nonhierarchical manner and decisions were made quickly.

◼In order to reform the business model, the company adopted thebusiness execution methods of its foreign partner and re-examined thefloor layout to create an office environment in which employees could
communicate more on an equal footing66Column ②
Cautions based on the Dissolved Cases ofCollaborations or Joint Ventures with Foreign Companies◼ Based on an analysis developed through publicly disclosed informaiton that examined collaboration or joint ventures with foreign companies
that were dissolved, it was found out that in some cases the reasons for the dissolution encompassed changes in the economic environment,
failure to achieve the expected results, and strategic inconsistencies between the parent companies. However, there are also some cases
where the joint venture company was dissolved that resulted along with a constructive outcome, due to the review of joint venturecompany’s business portfolio and investment strategy or the creation of a wholly owned subsidiary after the business became successful◼ The period from the capital participation (start of collaboration) to the sale of equity (dissolution) varies for different cases, ranging fromabout one year to over 10 years◼ The main reasons for dissolutions (examples), as well as cautions in terms of the contractual and corporate governance issues in the
dissolved cases are identified as follows

Reasons for dissolution (examples)
Change ineconomic
environment

Difficulties inbusiness
operations

Peculiarities of
the JapanesemarketStrategic
inconsistencies
between theparentcompanies•

One of the parties may withdraw from the joint venture due to a worsening of economic situations and falling stock prices,
etc.

•

Because the collaboration began and has continued with the aim at achieving short-term objectives before the relationship oftrust was fostered between the two parties, misunderstandings and miscommunications between the two parties arose, andthe business did not get on the track (and the sales was also below expectations)
One of the parties in the joint venture desired to ensure that the discretion was provided to such party for changing the scopeof business of the joint venture, so that it may consider expanding into a business that may compete with the joint venture••

As for a collaboration aimed at bringing new foreign products and solutions to Japan, the collaoration may have dissolved
because agreement between the two parties was not sufficient at the beginning of the collaboration as to how to deal with thepeculiarities of the Japanese market (such as the uncomformity of foreign products’ global standards in the Japanese market)•

Both parties did not clearly share the purpose and synergy effects of the collaboration due to a lack of communication, andboth parties had different perceptions of the outcomes and the exit strategy for the collaboration
No special meeting system was put into place to facilitate close communication between the parent companies and with thejoint venture company
The joint venture faced difficutlies to continue due to the inability of one of the companies in responding to changes in thecircumstances and policies of such company (including the changes in the senior management)
When an officer is dispatched from the parent company to serve as an executive (e.g., a representative director) of the joint
venture, the parent company may prioritize “representing” the interests of such parent company rather than maximizing theinterests of the joint venture business (this could lead to a clash of interests between the parent companies)

•
•
•

67

Column ② (continued)
Cautions based on the Dissolved Cases of Collaborations or Joint Ventureswith Foreign Companies
Cautions••
Contractualissues•••Governance•••Businessissues••The due diligence process will be important when collaborating with foreign companies, so thoroughly managing thecompany’s own documents and preparing the company’s business analysis in advance of transaction negotiations will benecessary
Understanding detailed contractual provisions which are common to foreign contracts (such as representations and warranties,
exit strategies (including eventual acquisition by one party), and indemnification clauses) as well as negotiation styles and theways of thinking will be necessary
It will be important to agree on contractual provisions (deadlock, non-competition clauses, governing law, provisions regarding
dispute resolution and dissolution, etc.) by assessing the possibility and the risks of disputes that may arise with thecollaboration partner and the dissolution. It is also necessary to recognize that a resolution based on the “discussion in goodfaith" clause may not be accepted by foreign companies
By recognizing that joint ventures and capital allicances are not permanent and future adjustments would be required, theparties need to reflect various contemplated situations in the terms and conditions of the agreement
Each party's authority, rights and roles relating to the collaboration or joint venture should be documented to foster a mutual
understanding between the parties, and regular management and business reporting meetings should be held
It is necessary to understand the compliance of the collaboration partner and implement compliance programs in accordancewith Japanese laws and regulations
It is important to operate the board of directors in accordance with the transparency and ESG perspectives which may berequired by the collaboration partner

It is important to recognize that contractual and governance considerations are only a methodology for smoothly advancing thecollaboration, thus it is necessary to consider substantive and persuasive justifications as to why the company will collaborate
with the foreign company
It is importan to share the company’s visions and goals with the collaboration partner thoroughly, clearly, and continuously
It is important to communicate the above two points at all levels within the company and form an organizational consensus

68Column ③
Utilization of Collaborations and Joint Ventures with Foreign Companies toEnhance Management at SMEs

◼ As the business environments are changing rapidly, small and medium-sized enterprises are also required toobjectively analyze the market conditions surrounding their businesses, consider what values they can provide throughtheir businesses, and develop effective strategies for their businesses. Upon doing so, collaborations or joint
ventures with foreign companies could be one of the options, amimng to expand sales channels in theoverseas markets◼ However, small and medium-sized enterprises, due to their limited management resources, may consider
collaborations or joint ventures with foreign companies, but may confront difficulties to organize internal systems orcommunicate in English. As a result, they may decide not to take concrete actions or may end up abandoning the ideaof a collaboration or joint venture with foreign companies◼ Examining case studies of small and medium-sized enterprises that carried out collaborations or joint ventures withforeign companies, it can be analyzed that these companies took measures such as using interpreters and hiring
language specialists, selecting appropriate collaboration partners that respect the company's characteristics
and strengths, actively utilizing support from external experts, and adopting flexible management policies tofacilitate smooth collaboration

Actual voicesfrom SMEs
thatcollaborated
with foreigncompanies⚫ By negotiating with the foreign company through an interpreter, the company was able to communicatesmoothly without worrying about the language barrier⚫ One of the reasons for selecting the current foreign collaboration partner is that the company felt that thepartner would respect the company’s brand, quality, and autonomy⚫ As for determining business details between the foreign and Japanese companies, the company valued theintentions of each party to combine the best of both sides to create the best possible solutions
together, rather than discussing which party was right or wrong⚫ The company was previously conducting accounting operations in accordance with Japanese accounting
standards, but to collaborate with a foreign company the company had to comply with the international
accounting standards, and so the company hired an external company. Thus, despite the shortage ofhuman resources, financial reports have been provided to the foreign company without any problems⚫ Among the regional banks that often do business with small and medium-sized enterprises, there are somebanks that support collaborations with foreign companies to address management issues such as
expanding SMEs’ overseas sales channels. Thus, it may be useful to consult with such regional banks fromthe business planning stage

69

4.4 Definitions and explanations of terms
Term
M&A-related

Management
indicators

1/2

Explanation

Inbound M&Atransactions

M&A (mergers and acquisitions) with Japan companies that utilize the foreign capital of a foreign operatingcompany, foreign PE fund, etc. In this research, this term refers to “mergers”, “acquisitions”, and ‘business
transfers’ (see p.6 for the definitions of “merger”, etc.)

Foreign company /Foreign operatingcompany- Companies and businesses that have their practical headquarters functions outside Japan.
- This includes companies that have received foreign capital investment and are registered as corporationsin Japan (so-called foreign-affiliated companies).

Buyer/Investor

The entity which acquires shares of the target company

Seller

The entity which holds the shares in a company and sells them to the buyer.

Target company

The company which is targeted for sale in an M&A.

Business portfolio

The composition of businesses in operation to which a company allocates business resources.

Minority investment

A minority investment refers to acquiring less than 50% of the shares of a target company.

KPI

An abbreviation of Key Performance Indicator. KPI are indicators that are quantitatively set for interim
goals in order to achieve a final goal.

Small and mediumsized enterprises(SMEs)

A company meeting the following requirements stipulated in Article 2 of the Small and Medium-sizedEnterprise Basic Act:
- For Manufacturing and other industries: 300 employees or less, capital of 300 million yen or less
- For Wholesale business: 100 employees or less, capital of 100 million yen or less
- For Retail: 50 employees or less, capital of 50 million yen or less
- For Service industry: 100 employees or less, capital of 50 million yen or less

Synergy

A synergistic or multiplying effect between companies or businesses

Corporate governance/governanceA system for monitoring and control to ensure fair judgment and operation in corporate management.

Other

70

4.4 Definitions and explanations of terms
Case
study
No.

Term

2/2

Explanation②

Pop-up store

A shop which is set up for a relatively short period of time, from roughly a few days to a few weeks④

Enterprise architecture

A mechanism for improving operations and systems from the perspective of "total optimization" in order toquickly respond to changes in the social environment, including customer needs, and information technology
itself④

RFI (Request For
Information)

An abbreviation for “Request For Information”. An RFI is a document issued by companies and government
agencies when they request basic information, technical information, product information, etc. from system
integrators and vendors when selecting products or services, planning outsourcing, bidding, procurement, etc.

⑩

High Voltage Direct
Current (HVDC)
business

HVDC is a system that transmits electricity at high voltage "direct current." It has the advantages of having little
transmission loss, being able to transmit large amounts of electricity over long distances, and being suitable forconnecting grids with different frequencies
It is a solution to realize renewable energy as a primary power source, including large-scale grid connection ofrenewable energy and long-distance transmission to areas of high demand
Source: Hitachi, Ltd. "Toward the realization of wide-area interconnection and long-distance power transmission- A noteworthy solution, High Voltage Direct Current (HVDC)"(https://www.hitachi.co.jp/products/energy/portal/case_studies/case_003.html)⑪

Wealth management

A general term for services that comprehensively and appropriately manage assets held by individuals71

【related website】◼ INVEST JAPAN（METI）
https://www.meti.go.jp/english/policy/external_economy/investment/index.html◼ The Study Group for Collaboration and Joint Venture Cases Between Japanese and Foreign
Companies
https://www.meti.go.jp/english/policy/external_economy/investment/sg_jv.html◼ Case Studies Relating to Collaborations and Joint Ventures between Japanese and Foreign
Companies in Japan companies Compiled（website）
https://www.meti.go.jp/english/press/2024/0424_003.html◼ Case Studies relating to the use of inbound M&A transactions（website）
https://www.meti.go.jp/english/press/2023/pdf/0419_002a.pdf【Contact details】■Investment Facilitation Division, Trade and Economic Cooperation Bureau, Ministry of Economy,
Trade and Industry
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