Proven Path - New Routes

FLIGHTS: 4+1= 14, diversified to US; linked beyond

Product of “Open Skies”

PLANE:

CONNECTIVITY:

TOP SECTORS:

RELATIONSHIP:

Model of global supply chain integration

Travel, trade, Investment / I & E

people exchange

Aerospace, Energy (RE) & Enviro,

tourism, Study USA

Broad, deep, vibrant...

Merits more attention from US firms

Japan Rates!

#1 …

#2 …

#3 …

#4 …

#10 …

#20 …

R+D/GDP

Investor in US, holder USG bonds,

tourist spend

Global economy

Source US imports, destination US exports

Global Competitiveness (among top 10-WEF)

Ease of Doing Business (among top 10-WB)

Real Challenges

-0.9% --

214% --

¥75.82 --

Sep 2011 --

$275.5 bn --

15,878 --

23.3% --

1.39 --

3Q12 GDP growth

GOJ debt/GDP 2012

peak of the Yen against the US$, 10/28/11

1st monthly current account deficit

total import of fossil fuel in 2012 (Jan-Nov)

human toll of March 11, 2011

≥ 65 years of age 2011

birth rate

Silver Linings:J-resilience; US synergies

Koll: “grey panthers”, soft power, agri-power,

destination power

US+: Pharma, device, healthcare svcs, health IT

US+: Energy, renewables(PV, meters, smart grids..)

US+: Remediation and/or de-commissioning

US+: HR, design, I & E models and partners

• Installed capacity est inc 3x to 132GW by 2030 (GOJ)

• Drivers: GHG reduction, growth sector, replace nuclear

• Nuclear Share of EPG: 26-30% ...50% ...0% ...???

• Installed Base Rank: Wind, Biomass, Solar, Hydro, Geo

• Solar PV lgst $/jobs. #3 w/w installed capacity. 3x growth to $17.1bn by 2020

• Wind turbines in No&So; >2MW; off-shore

• Biomass: JFY13 GOJ to subsidize 50% plant cost

• Geothermal: #3 potential w/w, but restrictions keep @ 8.5%

Sector Prospect #2:

Renewable Energy

US Commercial Service - JapanSource: The Federation of Electric Power Companies of Japan, International Energy Agency (IEA)

Power Generation Sources for Electricity

Forecast Before March 2011 Disasters

Prior to Revisions to Basic Energy Plan, Summer 2012

0

200

400

600

800

1000

1200

2009 2010 2014 2019 2030

New Energy

Hydro

Nuclear

LNG

Coal

Oil

1.0%1.1%

1.0%2.0%

29.3%

28.6%

25.0%

7.5%

29.4%

24,9%

7.1%

(Unit: TWh)

8.5%

37.0%29.3%

22.0%

21.0%

5.0%

25.0%

PV Market to Triple by 2020

Source: Japan Photovoltaic Energy Association (JPEA) US Commercial Service - Japan

-

2.00

4.00

6.00

8.00

10.00

12.00

2010 2011 2012 2013 2014 2015 2020 2025 2030

Residential Market

Non-Residentail

Market value estimated

at $17.1 billion

Unit: Gigawatt (GW)

Year 2010 2011 2012 2013 2014 2015 2020 2025 2030

Non-Residential 0.20 0.20 0.30 0.37 0.45 0.57 1.76 4.93 8.37

Residential Market 0.86 1.00 1.16 1.20 1.40 1.59 2.48 2.02 1.83

Assistance Tapping RE Opportunities

• Challenges: utility integration, Test&C, land use and other regulation, partner identification

• Sustained focus: webinars, matchmaking, events…

• 12/12 Roundtable and Site Visits in Tohoku

• 2/27-3/1/13, Tokyo, World Smart Energy Week, 8 shows covering fuel cell, PV cell, battery, wind, grid, eco bldg. CS delegation, JETRO Smart Grid Booth (7 of 14 from US)

Sector Prospect #2:

Renewable Energy

• 2011 Stock FDI in US: $293.8bn (2011 Flow: $18.6bn)

• Contributes 654,900 jobs; $51.8 bn exports

• 43% of Japan’s total FDI in US; 70% of inbound from Asia

• Japanese M&A in 2012 at record high,esp. overseas

• Drivers: high yen, rising production cost, sluggish markets

• Trends: autos to energy; SMEs; Skilled HR as motivation

• 10/12: SoftBank $35.5bn -70% Sprint; Marubeni-Gavilon; $5.6bn Daikin-Goodman $3.7bn; ItohChu-Dole

• MB Chemicals acrylic resins/Dow ethylene, Freeport, TX

Sector Prospect #5:

Direct Investment

Call on CS

Market Counseling, Due Diligence

Matchmaking, Trade Events

Governmental Advocacy

Select USA (Single Location Promotion)