Confidential
Annual Survey of Corporate Behavior

Cabinet Office

FY2006 corporate behavior questionnaire survey sheet

Valid until March 31, 2007

Submission deadline: January 16, 2007

CorporateNo.

This questionnaire will be handled in strict confidence.
Your replies will be used only for statistical purposes.

Industry

How to fill in:Enter applicable replies inor (enter:). Circle a number that applies in (Answer all the questions except for those asked only of indicated companies.
If you have changed your corporate name or address, please make correction by hand.
Please answer on a consolidation basis.

CompanynameAddress(wherethisquestionn
aire isfilled in)I.

12Capital (in billions of yen)
Zip code:

1.0
to5.0

5.0
to10.0(not incl)(not incl)

2

3

under
1.0

1

(Business outlook and demand forecast)
Q1: Give your rough forecast about nominal and real growth rates (Note1), ofthe Japanese economy and the demand in your industry(Note2) for FY
2007, the next three years (annual average rate for FY2007-2009) andthe next five years (annual average rate for FY2007-2011), respectively.
Enter in the blank below forecast figures to the first decimal point.
Next three years(FY2007- 2009
annual average)

FY2007Growth rate

4…

).

NameExtension (Phone)(2) To be answered only by exporting companies:
How much is the break-even exchange yen rate to the U.S. dollar
for your business at present? Enter an integer number in the blankbelow.

Business environment and basic management
policyYears

10.0andover

3

Dept

Entered by123
4

Note: If the conditions to determine the rate substantially differ from one
product or factory to another and make a uniform calculationdifficult, please reply relating to your mainstay product.
yenUS$＝

Next five years(FY2007- 2011
annual average)(Price)Q3: To be answered only by manufacturing, fishing, agricultural ormining companies.
Q3: How far drop or rise do you forecast the average price of purchase andsales to make your principal products one year from now (around January2008)? Choose and circle the only one number closest to your forecast.
For three years later, please reply on an annualized price basis.

Nom. growth rateof JPN. economy・%・%・%Real growth rate ofJPN. economy

・%・%

・%

・%・%・%

Price

Average purchase
price

Average sales
price・%・%・%

When:
Annual average
Rate of change (%)

One year later(around Jan. 2008)

One year later(around Jan. 2008)

20% or more

1

1

10% to 20% (not incl.)

22

Note 2: For the classification of you industry, refer to the industry
classification made by stock exchanges (medium category). If yourcompany covers a wide range of businesses, please reply relating to
the industry of your principal business line.

5% to 10% (not incl.)

3344(Exchange rates)Q2(1): What do you forecast the exchange rate (yen to U.S. dollar) will
be in one year from now (around January 2008)? Choose and circle
only one number.

0%

5566

Nom. growth rateof demand in yourindustry
Real growth rate of
demand in yourindustry

Note 1: Given below are GDP growth rates of the past three years
that indicate the growth rates of the Japanese economy (source:
Quarterly Estimates of GDP) released on Nov.14, 2006).
Nominal growth rate
Real growth rate

FY20031.0%
2.3%

FY20040.5%
1.7%

FY20051.8%
3.3%

0 % (not incl.) to 5%(not incl.)-5% (not incl.) to 0%(not incl.)

80 yenrange

90 yenrange

100 yenrange

110 yenrange

120 yenrange

130 yenrange-10% (not incl.) to -5%77123456-20% (not incl.) to -10%88

140 yenrange

150 yenrange(enter:-20% and less9978otherrange)

9

Not predictable

101

(The growth rate of capital investment)
Q4(1): How did/will you increase or decrease your total capital
investment (work-based) on an annual average over the past threeyears (FY2004-2006) and the next three years (FY2007-2009)?
Choose and circle only one number of the past and next three years,respectively.

(Change in the number of employees)
Q5: Did/will you increase or decrease the number of your employees overthe past three years (FY2004-2006) and the next three years (FY2007-2009)? Choose and circle only one number that applies to all
personnel and regular employees/staffers for the past and next three years,
respectively.

Note: Capital investment should not include land, used items, and a transferfrom construction in progress.

YearsPast three years(FY 2004-2006)

Next three years(FY 2007-2009)

Years

120% to 25% (not incl.)

2215% to 20% (not incl.)

3310% to 15% (not incl.)

445% to 10% (not incl.)

556

Regular employees

1All personnel

25% or more

Regular employees

Next three years(FY2007-2009)

All personnel

Past three years(FY2004-2006)

15% or more

1111610% toincl.)

2222775% to 10% (not incl.)

3333880% (not incl.) to 5%(not incl.)

444

4-10% (not incl.) to -5%

990%

5555-15% (not incl.) to -10%1010-20% (not incl.) to -15%1111-5% (not incl.) to 0%(not incl.)

6666-25% (not incl.) to -20%

1212-10% (not incl.) to -5%

7777-25% and less

1313No capital investment was made/isplanned.

88814-15% (not incl.) to-10%

814-15% and less

9999

Annual average
Rate of change (%)

0% (not incl.) to 5% (notincl.)
0%-5% (not incl.) to 0%(not incl.)

Form ofemployment

Annual average
Rate of change (%)(Purpose of capital investment)(2) What purpose do you consider of importance for capital investment?
Choose and circle up to three of the purpose given below for the past
three years (FY2004-2006) and the next three years (FY2007-2009),
respectively. Of the three, choose and mark with a double circle themost important.
Years

Past three years(FY2004-2006)

Next three years(FY2007-2009)

1

1

2

2

Response to informatization

33

Laborsaving and rationalization

44

Environmental protection

55

Overseas investment

66

Research and development

77

Branching out into new businesses

88

Maintenance and replacement

99Others

1010

No capital investment was made/isplanned.

1111Purpose
Expansion of production capacity
or sales capabilities
Improvement of product or service
quality

215% (not(3) As to the reason for maintaining domestic or overseas production bases,choose and circle only one number closest to your situation.

(Ratios of overseas production and reverse imports)
Q6: To be answered only by manufacturing companies.
Q6(1): What do you roughly estimate/forecast for the ratio of overseas
production to the total of domestic and overseas production combinedfor FY2005, FY2006 and FY2011, respectively?
Enter estimated/forecast figures to the first decimal point in theblank below. Enter “0” if you have/will have no overseas production.

a. Reason for maintaining domestic production bases
Sophisticated technology is employed, which makes overseas
production difficult.

1

It costs less to utilize the existing production facilities.

2

Given the availability of suppliers, domestic production costs less.

3

Output ofoverseas
production

It had better to produce domestically for the relationship withcustomers.

4

Note 2: Overseas production means “production by direct overseas
investment” of Foreign Exchange and Foreign Trade Control Law. If
two or more partners jointly operate overseas production, the largest
shareholder should answer this question (or the manager partner if allpartners have the same share).

Lack of know-how about international business management
makes us uneasy.

5Domestic production enables flexible response to domestic
demand such as supply of a wide variety of products in small
batches.

6Others

7Note 1: Calculate production ratio in terms of yen amounts of sales basedon selling prices by the following formula. For FY2011, use thecurrent exchange rate for conversion of sales denominated in foreign
currency.
Output of overseas production
Ratio of overseas production =(output)

Year
Ratio
Ratio of overseas
production(output)

Output ofdomestic
production

Ratio achievedfor FY2005
・+

Ratio estimatedfor FY2006%

・%

Ratio forecast
for FY2011
・%b. Reason for maintaining overseas production bases(2)

What do you roughly estimate/forecast for the ratio of reverse
imports (ratio of exports to Japan to the total overseas production) forFY2005,FY2006
andFY2011,
respectively?
Enterestimated/forecast figures to the first decimal point in the blankbelow. If you entered “0” in (1) above for any year, do not enter any
figure for that year.

Note: Calculate import ratios in terms of yen amounts of sales based on
selling prices by the following formula. For FY2011, use the current
exchange rate for conversion of sales denominated in any foreign
currency.

Exports to Japan
Output of overseas production

Ratio of reverse imports＝YearRatio
Ratio ofreverse
imports

Ratio achievedfor FY2005
・Ratio estimatedfor FY2006%

・%

Ratio forecast
for FY2011
・%3

Possibility to secure good-quality and low-cost labor.

1

Local product demand is brisk or is expected to grow in the future.

2

Overseas production enables flexible response to local customer
needs.

3

Others4