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Speech by Japan’s Chief-Cabinet Secretary Takeo Kawamura (河村建夫)

Japan’s Chief Cabinet Secretary Takeo Kawamura (河村建夫) gave a speech at the Foreign Correspondents Club on December 17th, 2008. Kawamura is born in Hagi (Kawaguchi-ken – a beautiful Castle Town in the west of Japan’s main island, which is also host to many famous potters). Kawaguchi was Education Minister in Prime Minister Aso’s cabinet.

In his speech Kawamura of course mainly talked about the current global financial crisis and stimulation programs to support the economic recovery, to support new industries and new technologies. Another emphasis is consumer protection support of the consumer agency in view of recent food scandals, and other consumer good problems.

Points which I found interesting in Kawamura’s presentation where:

– A comprehensive law for decentralization is on the way for next year

– The basic law on space development

There was quite a long Q&A with discussion. What I found interesting was Kawamura’s answer to the question about the disputed Takeshima islands, that a solution in an international arbitration court is desirable.- This is the first time I heard about this possibility from Japanese leaders.

Asked also about the disputed Sentaku Islands, Kawamura mentioned the possibility of joint ownership areas for maritime resources, and the development of gas resources beyond the 200 mile territorial limits.

Takeo Kawamura (LDP)

Copyright·©2013 ·Eurotechnology Japan KK·All Rights Reserved·

December 17, 2008
Paradigm change of the global mobile phone business and opportunities for Japanese mobile phone makers

presentation by Gerhard Fasol, at the Industry Association of Japanese telecom and networking equipment makers, Friday November 27, 2008, 15:00-16:30

Presentation was fully booked several weeks before the talk, attended by about 100 managers and executives of Japan’s telecom equipment makers, and included also the Vice-Minister/Secretary of State of Japan’s General Affairs Ministry, which is responsible for telecom regulation in Japan.

Japan telecommunications industry (66th edition) – Market analysis & tutorial

Copyright 2013 Eurotechnology Japan KK All Rights Reserved

November 27, 2008
Nomura CEO, Kenichi Watanabe speaks about the Lehman Brothers acquisition

Nomura CEO, Kenichi Watanabe, today gave a presentation about the acquisition of the former Lehman Brothers operations in Europe & ME, Japan, Asia (ex-Japan) and in India.

Nomura acquired:

Europe and ME:
Equities and investment banking operations (approx 250 people)
Fixed income staff (approx 150 people)

Japan:
approx. 1100 people

Asia (ex-Japan):
approx. 1500 people

India:
three subsidiaries, in total approx 2900 people
LB Services India, IT, Global servicing
LB Financial Services India, research services
LB Structured Finance Services, Capital Markets Support and Analytics

Synergies:

Nomura is strong in mutual funds (74.2% of business)
Lehman is strong in hedge funds (56.8% of business)
Nomura is strong in retail

Lehman is strong in wholesale

Nomura plans three phases:

Phase 1: x-Lehman staff join Nomura
Phase 2: start joint operations
Phase 3: promote efficiency
Phase 4: create synergies

Q&A (there was an extensive Q&A session), selected questions were:

Question: Could the Lehman acquisition be seen as a “reverse takeover”, ie Lehman people taking over Nomura?

Answer: any kind of takeover, foreign staff taking over, new hires taking over, long term employees taking over is ok for Nomura, if it makes the customers, shareholders and employees happy.

Question: how does Nomura plan to cover the acquisition costs, how does Nomura plan to become profitable, and could there be cuts in headcount?

Answer: we will right-size in each business area according to the necessities in each business area, and in some business division we are hiring and increasing headcount.

Question: what about highly paid “talents” and high bonus payments? Could there be friction with existing Nomura employees?

Answer: Nomura already has several thousand employees with about 50 or more nationalities, and some are paid more than the CEO of Nomura, so we are already familiar with this situation. Currently Goldman-Sachs CEO and top executives have announced that they will not receive any bonus payments. We will hope that this will be understood in our company as well.

Question: Will the acquisition mean an end to lifetime employment and bring the introduction of performance based payment?

We must make sure that we satisfy our clients, we will focus to deliver the services our clients need.

Nomura CEO Kenichi Watanabe

Nomura CEO Kenichi Watanabe

Copyright·©2013 ·Eurotechnology Japan KK·All Rights Reserved·

November 19, 2008
Modo Gakuen Cocoon Tower in Tokyo Shinjuku (モード学園コクーンタワー)

Modo Gakuen Cocoon Tower in Tokyo Shinjuku (モード学園コクーンタワー)

Purpose: shared by three Universities and schools, and others

4 underground floors + 50 above ground floors
building started: May 1, 2006
opened: October 15, 2008
Architects: Tange Associates (丹下都市建築設計)
Building company: Shimizu (清水建設)

Modo Gakuen Cocoon Tower in Tokyo Shinjuku (モード学園コクーンタワー)

Modo Gakuen Cocoon Tower in Tokyo Shinjuku (モード学園コクーンタワー)

Modo Gakuen Cocoon Tower in Tokyo Shinjuku (モード学園コクーンタワー)

Modo Gakuen Cocoon Tower in Tokyo Shinjuku (モード学園コクーンタワー)

Modo Gakuen Cocoon Tower in Tokyo Shinjuku (モード学園コクーンタワー)

Copyright (c) 2013 ·Eurotechnology Japan KK All Rights Reserved

November 18, 2008
Four critical factors for Japanese corporates making major international acquisitions, Stuart Chambers, CEO of NSG Group
Stuart Chambers, CEO of NSG Group, gave a press conference on October 16, 2008, here are some notes and thoughts.

On February 16th, 2006, Nippon Sheet Glass’ offer for the 80% of Pilkington plc it did not already own, for US$ 3.14 billion in total, was accepted by Pilkington’s share holders and the acquisition was completed in June 2006. At the 142nd Annual Shareholder Meeting on June 27th 2008, Stuart Chambers was appointed Representative Executive Director, President and CEO of NSG Group.

Here some essential points of Stuart Chambers’ presentation, entitled “Four critical factors for Japanese corporates making major international acquisitions”.

The four critical factors in the title are:
1. Integration (share holders and customers demanded integration, because the value of the combined NSG + Pilkington after the acquisition must become bigger than the sum of its parts -> must change HR management, and board)
2. Repaying debt -> senior management must understand the balance sheet
3. Identifying growth opportunities for the future (glass for solar energy)
4. Succession
From the outset the aim was not to create a Japanese company with overseas subsidiaries, but to create an international company, headquartered in Japan and listed on the Tokyo Stock Exchange. Therefore the greatest changes needed to be made in Japan.

NSG Group changed from an exclusively Japanese Board, to a new Board structure:

Board of Directors: 12 (7 Japanese + 5 non-Japanese) and

Executive Officers: 23 (11 Japanese + 12 non-Japanese)

These changes were necessary in order to retain non-Japanese management talent from leaving the acquired company after the merger.

The Board structure was changed from the traditional Kansayaku (Corporate Auditor) structure to a Board with Committees.

HR management changes from internal promotion according to time served in each job level to the international practice of combining internal and external hiring according to capability and demonstrated performance ignoring age as a factor.

Stuart Chambers, CEO of NSG Group

Copyright (c) 2013 Eurotechnology Japan KK All Rights Reserved
November 3, 2008
Paradigm change of the global mobile phone business and opportunities for Japanese mobile phone makers

Presentation at the CEATEC Conference, talk NT-13, Meeting Room 302, International Conference Hall, Makuhari Messe, Friday October 3, 2008, 11:00-12:00.

See the announcement here [in English] and in Japanese [世界の携帯電話市場のパラダイム変更と日本の携帯電話メーカーのチャンス]

The emergence of iPhone, Android, open-sourcing of Symbian, and the growth of mobile data services are changing the paradigm of the global mobile phone business opening new opportunities for Japanese mobile phone makers. Japan’s mobile phone handset makers have missed most opportunities during the first wave of mobile phone opportunities. The developing paradigm change opens new opportunities for Japanese makers. The talk will explain the paradigm shifts and trends of the global mobile phone handset market, and resulting opportunities for Japanese mobile phone makers, and will indicate how these opportunities can actually be realized.

Japan telecommunications industry (66th edition) – Market analysis & tutorial

Copyright 2013 Eurotechnology Japan KK All Rights Reserved

October 3, 2008
LDP President (and candidates for the next Prime Minister) present their messag
The candidates for the next President of the LDP (Liberal Democratic Party) of Japan presented their views and answered questions at the FCCJ in Tokyo to the foreign press. An LDP party electoral college (387 Diet members + 141 regional representatives, in total 528 votes) will vote to select the president on September 22, 2008, who is likely to become the next Prime Minister after Yasuo Fukuda’s resignation. The candidates are:
- Nobuteru Ishihara (50), son of Governor Ishihara of Tokyo. Minister for Administrative and Regulatory Reform
- Yuriko Koike (56), Journalist, Minister of Defence under Prime-Minister Abe
- Taro Aso (67), Minister of Foreign Affairs und Prime Ministers Shinzo Abe and Junichiro Koizumi. Taro Aso is Roman Catholic. Studied at Stanford University and at the London School of Economics.
- Shigeru Ishiba (51), Minister of Defence under Prime Minister Fukuda
- Kaoru Yosano (70), currently State Minister for Economic and Fiscal Policy
Our comment:

Media generally predict that Taro Aso is likely to win the race for Presidency of the LDP and thus become next Prime Minister of Japan. Taro Aso comes from a leading family, and has wide experience.
Having attended the event at the Correspondents Club, in my opinion Mme Koike gave the clearest presentation – having worked as TV journalist clearly helps, but its also the content of her political program which is clear and meaningful and easy to understand. Mme Koike’s program included the plan to “destroy Kasumigaseki”, meaning that she plans to take political power from the Ministries to the Government and strengthen political leadership…

There is a generation gap between Aso (67) and Yosano (70) – and – Ishihara (50), Koike (56) and Ishiba (51). The presentations also clearly manifested this generation gap.
In my opinion Japan would benefit from diversity in leadership. Japan already has a number of outstanding women leaders, and would benefit to have some more women in politics as well, including top positions. So if I could vote – which I can’t – I would myself vote for Ms Koike, and I said so in a TV interview by Asahi-TV.

LDP Prime Minister’s candidates

LDP Prime Minister’s candidates

LDP Prime Minister’s candidates

Copyright·©2013 ·Eurotechnology Japan KK·All Rights Reserved·
September 21, 2008
Will the iPhone trigger a turning point in Japan’s mobile phone industry?

Tetsuzo Matsumoto (Senior Executive Vice-President and Board Member of SOFTBANK MOBILE Corporation),
Gerhard Fasol (CEO, Eurotechnology Japan KK)
and
Dennis Normile (Japan Correspondent of SCIENCE Magazine, and FCCJ)
discuss about the future of Japan’s mobile phone market.

“Will the iPhone trigger a turning point in Japan’s mobile phone industry?”
(Foreign Correspondents’ Club of Japan, Tokyo Wednesday, August 13, 2008, 12:00-14:00)
(Photo: Copyright Foreign Correspondents’ Club of Japan, used with permission)

Left to right: Gerhard Fasol (Eurotechnology Japan), Tetsuzo Matsumoto (VP SoftBank-Mobile) and Dennis Normile discuss the iPhone market entry to Japan

Copyright 2013 Eurotechnology Japan KK All Rights Reserved

August 20, 2008
A German perspective on M&A in Japan
German Embassy in Tokyo

April 24th, 2008

Title: A German Perspective on M&A in Japan
- The background, the drivers:
  - High Euro, low valuations in Japan
  - Globalization, must have critical size
  - Technology
  - Europe’s business is under-developed in Japan
- The Landscape:
  - M&A is generally at lower levels than in UK/US
  - recently M&A transactions are rising:
- Types of M&A:
  - strategic vs financial
  - friendly vs hostile
- M&A: the process
  - Finding the target: “why should I pay for that?”
  - The deal: in Japan money often not always win!
  - Due diligence: often overlooked in Japan – especially by foreign companies!
  - Post-merger: culture is really difficult, must do your homework to succeed!
April 24, 2008
M&A in Japan
Talk and panel discussion at the Daiwa Anglo-Japanese Foundation

Practical aspects of mergers and acquisitions between Europe and Japan

Gave a panel talk organized by the Asia Pacific Technology Network at the beautiful House of the Daiwa Anglo-Japanese Foundation near Regents Park in London on the topic “M&A in Japan” on April 18th, 2008.

Summary:
- The background, the drivers:
  - High Euro, low valuations in Japan
  - Globalization, must have critical size
  - Technology
- The Landscape: M&A is generally at lower levels than in UK/US, however recently M&A transactions are rising:
  - 1985-1993: 500 deals/year Buyout Funds: 1 – US$ 30 Million
  - 2000-2003: 1700 deals/year
  - 2005-2007: 2700 deals/year Buyout funds: 22 – US$ 5.6 Billion
- Types of M&A:
  - strategic vs financial
  - Hostile vs friendly
- M&A: the process
  - The deal: in Japan money does not always win!
  - Due diligence: often overlooked in Japan (with example from our experience)
  - Post-merger: culture is really difficult, must do your homework to succeed! Lets discuss the pitfalls, e.g. lets learn from the Vodafone case!
Speakers:

Dr Gerhard Fasol, President, Eurotechnology Japan KK
David Syrad, Managing Director/Managing Director Asia, A.K.I. Japan Limited/Change Masters International Limited
Seminar Description

Two practitioners from Tokyo will debate the changes in Japanese attitudes to mergers and acquisitions. Gerhard Fasol is the leading expert of Japan’s electronics and telecoms sectors, while David Syrad is a consultant specializing on M&As, with particular reference to the automotive sector.

During the course of this seminar, we will cover:
- M&As between Japanese companies,
- the slow impact of foreign investment into Japan, and the (see: Europe to Japan M&A registry)
- outward investment strategies of Japanese companies. (see: Japan to Europe M&A registry)
DR GERHARD FASOL: BACKGROUND

Gerhard has been working with the Japanese telecoms industry since 1984. Over 1996/7, he created Eurotechnology Japan KK, which has become one of the leading western technology and M&A advisory boutique in Japan, focussing on the Japanese ICT sector. In recent years, Eurotechnology’s work has included advising a global financial institution on the risks of the US$ 15 billion loan to SoftBank for the Vodafone KK acquisition, helping a French company to acquire a Japanese pharmaceutical factory, analyzing industry sectors and companies for global investment banks, and working with a financial institution on mobile banking sites, including business development, technology and security.

Eurotechnology was also recently engaged by the European Union to benchmark Japan’s mobile and fixed-line communication industries vs EU, and to make recommendations to the European Union how to learn from Japan.

In addition, his company constantly works on business development projects between Europe and Japan – several of which Eurotechnology drives on it’s own initiative, helping Japanese companies grow business in Europe, and helping European companies build and grow their businesses in Japan.

DAVID SYRAD: BACKGROUND

Managing Director/Managing Director Asia, A.K.I. Japan Limited/Change Masters International Limited. David is responsible for strategy, business development and personnel. Also active as a consultant.AKI is a long-standing market entry and communication-related consultancy. Projects handled include: Automotive, Medical Equipment, ICT, IT, Nuclear Power, Office Automation, Food and Beverages, Sports Goods, Education and Tourism

Change Masters International is a UK-based, global Strategy Implementation Consultancy – latest Japan project led to client’s induction into the Balanced Scorecard Hall of Fame.

Location: Daiwa Foundation Japan House, 13/14 Cornwall Terrace, London, NW1 4QP (www.dajf.org.uk/location)
Nearest tube station: Baker Street
Timing: Sandwiches 12.30: Seminar 13.00 – 14.30.
Pricing: Free
To Register: please send your details (name, institutional affiliation, email address, phone number) to biz@aptn.org
Contact: Louis Turner 0790 5204 677

See: http://www.aptn.org.uk/20082Q/80418M&ATokyo.html
April 18, 2008