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Corporate profileErnst & Young Advisory Co., Ltd.


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| Ernst & Young Advisory 4Ernst & Young Advisory |

Growth is an eternal issue for companies, and its importance has

become greater than ever before. Where is the source of growth

now, and where will it stem from in the future?

Being able to effectively respond to the demands of the global

economy and be nimble when innovating are at the heart of the

matter. Companies must boldly reform themselves in order to

remain competitive in the global market and sustain growth.

We believe it is the continuation of this challenge that is the

source not only of vital revenue growth for a company but also of

innovative approaches to its people, organizational reform and

business models that are effective on a worldwide scale. Ernst

& Young Advisory strongly supports our clients' challenges by

developing talent with specialized knowledge and skills across

multiple industries, taking a business sector-focused approach to

problem solving and delivering our diverse capabilities globally.

Our MessageWhy Ernst & Young Advisory?


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Our Solutions Our Solutions

Finance transformation

Supply chain management

Customer relationship management

People and organizational change

IT advisory

Strategic direction

Finance transformationWith all the signicant changes in the market – including globalization, increasing cost pressures, andrapid responses to business needs – CFOs face a range of operational challenges and issues. Also, theiraccounting andnance departments require strong and exible management support functions.Ernst & Young Advisory provides professional services that help enable clients to enhance their CFOfunctions and build more efcient and effective operations to achieve their strategic goals.

Business areas and issues with which we can support

Our main Finance transformation services

Finance transformation approach (Example)

Group management control

We support our clients in building or enhancing group managementfunctions and in implementing IT systems. This is done by deningthe nancial data and key performance indicators (KPI) necessary tosupport robust management reporting with due consideration to thecompany's business characteristics and its place in the global market.

IFRS implementation services

Our service does not stop at simply dealing with changes in accountingstandards; it includes assisting clients in areas such as building a base formanaging group companies for pushing ahead with standardized group-wide business performance indicators.

Acceleratednancial closings

We help clients achieve an accelerated time frame for their nancialclosing process by reviewing this process across group companies andimproving their daily accounting operations – this is as opposed to simplyshortening the number of hours spend on the nancial closing process atthe parent company.

Improvement in the preparationof consolidated nancial closings

We assist our clients with their implementation of systems for theirconsolidated nancial closing process and with improvements aimed atoptimizing the structure of these processes. This service ranges fromstatutory accounting to setting up units for information in managementaccounting (units according to produc t, customer, or division).

Stronger management ofoverseas subsidiaries

We help clients in building or planning out their organizationfor group or subsidiary management. We also help clients withstrengthening their corporate governance and with devising theirpolicies for managing subsidiaries in line with their strategy andgroup management policy.

Financial process integrationassociated with a reorganization

We provide comprehensive support in areas aiming at maximizingthe corporate synergies expected from a corporate re-organization.This includes implementing an infrastructure for group management,integrating IT systems and reappraising existing processes.

Shared services centerSSC

We provide end-to-end support in designing a shared services structure,building the processes contained therein and implementing theassociated IT systems. Our focus extends beyond the reduction ofoperating costs to improving the quality and timeliness of nancial andaccounting processes.

In addition to the above, through the use of the EY global network of rms, we also assist clients with domesticand overseas investor relations (IR).

Step1Identify requirements and

devise a plan

Step2Understanding Current State

Step3Diagnosis and Assessment

Step4Proposal of an action plan

Analyzethecorporation

Organizea projectteam

Seta commonvisionofthe transformation

Access thedegreeof advancement of

Establish benchmarks for accounting and

Identifyand agreeon improvement opportunities

Puttogetherandthen prioritize improvement opportunities

Createaroadmap

Createbusinesscases

Collect information related to current processes

Research theVOC(Voiceof theCustomer)

evaluation criteria and benchmarks

Although there are no problems in nancial accounting involving the preparation of nancial closinginformation, there is action needed to improve management. there is action needed to improvemanagement, such as the analysis of information used for management purposes, managing dif cultoperations or processes, or making strategic planning proposals, etc.

A lack of transparency involving nancial information or other information needed for globalmanagement has resulted in the information needed for managing group companies not beingproperly or punctually collected.

Delays in standardizing or automating accounting or nancial processes interfere with movingforward with outsourcing or shared services arrangements.


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Transforming plans involvingsupply and demand and theprocess of implementing them

We can assist you with your review of processes involved with plans formanaging supply and demand. This includes demand forecasts, sales orsupply plans (inventory, production, purchasing) Our service aims toeliminate overstocking and shortages, improve cash ows and preventthe loss of sales opportunities.

Optimization of inventory anddistribution hubs

With production and sales centers becoming more global and with anincreasing number of inventory and distribution hubs for materials andproducts, are services support clients in analyzing their networks and inpositioning and running inventory and distribution hubs at the minimumcost using Scenario Planning.

Cutting procurement costs fordirect and indirect materials

Our service entails analyzing the existing cost elements behind materialsused directly and indirectly and the impact of any improvements. Italso includes selecting products targeted for cutting costs, making theprocurement processes and their results more transparent and building aset-up for making continual improvements.

Tax Effective Supply ChainManagement(TESCM*)

By utilizing our tax advisory knowledge and EY's global network, we canassist you with the implementation of supply chain operations, taking intoconsideration the nancial impact of customs duties and transfer pricing.We also consider how to enhance risk management and compliancemanagement.

Our Solutions

Supply chain managementThe optimization and upgrading of a supply chain - through means such as improving processes tied tosupply and demand, strengthening cost competitiveness, reducing lead times, or the establishment ofa Business Continuity Plan (BCP) - has become an urgent task for companies amid a globalization ofmanufacturing and sales bases, stiffening price competition worldwide and natural disasters. In additionthere are business processes which should be taken into consideration at the time of deploying a globalsupply chain. Ernst & Young Advisory can help you with implementing better supply chains for yourcompany by providing services ranging from strategic planning and process improvement to IT systemimplementation, this while giving due consideration to the appropriatechange management.

Our main Supply chain management services

Supply chain management approach (Example)

Our Solutions

Customer relationship managementIn the current economic climate, companies have been reminded of the need to identify their keycustomers and establish and maintain more effective and lasting relationships with them. It has becomeincreasingly important to take a cost-effective approach to customer segmentation when addressingmarketing and sales initiatives. Companies need to identify who are their important customers and thenestablish, and maintain, a more effective and continuous relationship with them. During our review andsupport of improved customer management, we begin the transformation of our clients' relationships withtheir customers by asking the simple questions: Who are your company's customers and are they happywith your company's products, services and support both before and after the sale? Surprisingly, theanswers to such questions typically provide the foundation for a signicant relationship transformation.

Our main Customer relationship management services

Customer solution approach (Example)

Step1

Supply chain diagnosis

Step2Detailed plan on a policy

to transform the supply chain

Step3Implementing the transformation

and having it take hold

We help our clients reduce theirdistribution costs and assist them withtheir strategy for building a globalsupply chain. This is done by rstextracting the issues and proposingmeasures to resolve them and thendrawing up a general roadmap anddetailed action plan.

In line with the action plan created forthe supply chain diagnosis, we thenhelp in drawing up a central plan aimedat carrying out the measures to solvethe issues, this while embeddingspecic points such as dening theprocess for these measures, devisingnew rules for this process, establishingKey Performance Indicators (KPI), etc.

In line with the central plan, we havethe client conduct its businessactivities based on new processes andrules and then, within a PDCA cycle,assist the client in monitoring thetransformation by extractingoperational issues and in following thedevelopment of KPIs until thetransformation takes hold.

Conduct hearings on existing operations

Issue identication and visualization

Identifying gaps between the state of the existing supply chain and the way a supply chain should be.

Prioritizing how issues are handled and resolved

Clarication of supply chain management requirements

Devising an action plan

Dening the scope for applying the measures to transform the supply chain

Design of processes

Designing the set-up and organization

Setting KPI

Certain verication

Designing the systems

Devising the central ormain plan

Introduction of new business

System implementation

Change management

Monitoring

Operation follow-up

Planning for the next stage

Roadmap of transformations toyour company's services (Example)

Customer

Your company

C R M r a pi d a s s e s s m en t s

C u s t om er s er vi c e

m an a g em en t s u p p or t

Contact centertransformation support

Channel and salestransformation support

Marketing strategyplanning support

Circle size = Level of customer happiness

C on t r i b u t i on t o y o ur c om p an y' s p er f or m an c e

( E nh an c em en t of c u s t om er r el a t i on s )

Transformation progress

Contactcentertransformation support

Channel andsales transformation support

Customerservicemanagementsupport

Marketstrategy

CRMrapid assessments

CRM quick assessments

We support in the selection of a theme your company should examine byusing our Ernst & Young Advisory template to conduct a simple diagnosisof the overall CRM operations speedily and thoroughly with customers asthe starting point.

Marketing strategyplanning support

We draw up a roadmap to nd and implement the best way ofcommunication between your company and its customers based onfuture media and communication trends in addition to our internationaland domestic expertise.

Customer servicemanagement support

We support the planning and execution of the review of your company'sservices, costs etc. in consideration of customer evaluations andimportance. Through a cross-sectional check of the touch points betweenyour company and its customers, we redene your optimum services.

Channel and salestransformation support

Taking recent diversications of customer purchasing and procurementchannels into account, we support the planning and execution of areview and consolidation of existing channels. We also support salesorganization restructuring and operational streamlining in order tooptimize the functionality of that mixture of channels.

Contact centertransformation support

We see service centers and call centers as being important touch pointsfor increasing customer satisfaction and brand loyalty. We support thedesign of service menus, information transmission rules and procedures,and KPI for a base of controlling information to customers.

*TESCM (Tax Effective Supply Chain Management) means studying and establishing a business structurethat aims to optimize both Supply Chain Management and the tax function.

Business areas and issues with which we can supportBusiness areas and issues with which we can support

With a volatile economic climate, our client wants to reduce the risk of surpluses and shortages ofstocks by strengthening links between the functions of production, sales and distribution and byimproving their ability to adjust to supply and demand.

In response to calls from the market and their customers to cut costs, our client wants to becomemore cost-competitive by reducing its purchasing costs for direct and indirect materials or costsinvolving inventory or distribution.

Our client wants to construct a highly effective and economical supply chain taking into accountthe impact of not on ly operational streamlining but also customs duties and transfer prices.

Our services entail helping clients gain insights into customer data they analyze regularly.

With an eye towards making signicant changes to their operations, our client wants a review ofcertain areas of these operations which takes into their account customer needs, expectations andcost effectiveness.

Improved ROI from marketing activities is a client goal – as is better customer cash owmanagement and protability.


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1 | Ernst & Young Advisory 12Ernst & Young Advisory |

The IT environment is continually progressing and changing. Its utilization in business management is asource of competitive strength amid increasingly tough competition. Even in the recent harsh economicclimate, there are many progressive companies that fully utilize IT to generate more growth. How doesthe IT environment of your company compare with your rivals? At Ernst & Young Advisory, we supportthe planning and implementation of an IT strategy that will become a source of corporate strength, byintroducing other company cases in various industries and progressive methods from similar industries.

Our Solutions

People and organizational change

Our main People and organizational change transformation services

Our Solutions

IT advisory

Our main IT advisory transformation services

IT advisory approach (Example)

IT strategy planning support

We support the planning of an IT strategy (mid- to long-term plan) thatprovides a competitive edge, taking into account compatibility withmanagement strategy, trends in customers' industries, progressivemeasures in similar industries, and so on.

Investment efciency analysisIT design planning support

We support the planning of effective IT design taking into considerationof investment benets, etc. in regard to measures in response to localneeds and industry trends. We also help with RFP creation for launchingIT projects.

IT governance &standardization support

We support the establishment of IT governanceframeworks(organization, approval authority, responsibilities androles, personnel resources)and the design of standard denitionsand management processes for IT service operations and enablingtechnology.

IT design planning supportWe support implementation of PMO operations to achieve initial targetsand realize cost, quality and delivery control in IT projects, and operationcontrol across multiple projects.

System construction andinstallation support

We support the construction of new systems and the installation ofindividual solutions in the forms of ERP, BI, CTI and OCR. We also helpwith the BPR and establishing that accompany systematization.

Existing systemimprovement support

We support the improvement of degraded performance and inefcientinput interfaces in existing systems such as ERP.

System operation,maintenance outsourcing,

and TCO reduction support

Through automation, virtualization, sharing, outsourcing, etc. wesupport the implementation of reduction measures for TCO related to IT,namely, system operation, maintenance, monitoring, software licenses ,and servers.

Organization design

Helping the client dene the way structure, role and resources aredesigned to deliver the strategy and operating model blueprint. Thisincludes designing the formal system of accountability that denes keypositions and enables the efcient allocation of resources to supportbusiness outcomes.

Change management

Supporting the transition from current state to future state in any ofthe areas of Structure, Process, System, Operations, and People in anorganization.This also includes making cultural changes by assessing the culturalimpact of proposed business changes and assisting with the design ofchange strategies including communications on change programs.

Talent management

Working with clients in balancing the talent demand and supply tosupport management decisions around how to best secure the supply oftalent to maximize business results.Assisting clients to optimize workforce management by analyzinglabor costs, workforce scheduling, productivity, employee 'churn' andrecommending actions to improve workforce exibility.

HR transformation

Assisting the client with the development and alignment of the HRfunction strategy, the design of the HR function organization, includingService Delivery model and roles and responsibilities, developing HRScorecard and HR Technology as well as improving HR Policies andProcesses.

HR process efciency

Providing the client assessment, design and implementation support forimprovements in the HR function. This includes assessing the maturityof the client's HR processes compared to industry practices and focusingon specic HR process needing review, redesign and sustainableimprovement.

People risk assessmentSupporting the client in identifying risks and compliance requirementsassociated with People and HR in order to reduce nancial liabilities andincrease function preparedness.

Post merger integration

Supporting the integration of organizations, process, systems,operations and transferring and reassigning personnel after Day1.This also includes supporting change management after Day1(stakeholder analysis, change management planning, leadershipalignment, training development, communication planning, etc.)

Step4Step1Analysis of current state

Step2Issue identication

Step3 Step4De pl oy me nt o f s ol ut ions Sol ut ion e xe cuti on s uppor t

Assesscurrentoperations,ITsystems,

Interviewpersonnelandanalyze competitiveinternalandexternal

Keyperformanceindicators)

solutions portfolio

Preparea prioritized action plan

Provideoperational transformationsupport

Supportsystemimplementations

operationalprocesses and IT systems

Analyzeroot causes

Dependencies

High economic growth can no longer be expected in Japan, so companies are faced with the issues andchallenges of both overseas business expansion and domestic business streamlining. The question is howthey can build diversied management system which more non-Japanese employees and non-regularemployees are involved in.By developing sophisticated people and organizational management system being able to develop globaltalents, harmonize multicultural organization, and build effective group governance structure, companiesare required to enhance their organizational strength, become competitive and grow.Ernst & Young Advisory supports our clients to maximize their corporate value by providingcomprehensive services ranging from strategic planning of people and organizational change todevelopment of human resource management.



Our clients need change management support when they do not have the capacity or capability todeliver performance improvement results.

Our clients need to continuously manage their workforce to deliver in line with the changing businesspriorities and customer demands.

Our clients need to continually adapt to change due to which improvement programs arerequired that can lead to a more effective and efcient Human Resource organization.

Our client receives requests daily from the eld for IT improvements but does not understand theinvestment benets or the suitability of the measures it is trying to implement.

Interconnecting multiple ongoing IT projects and helping the organization and its personnel handlethe workload.

Helping clients with the important tasks of assessing the adequacy of IT work performed bycontractors and in dealing with a lack of IT governance and concerns over IT security.


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Mid-term management planning

How can you overcome organizational barriers and actually generate

group synergy? How can you respond to the external economic climatechange? We support measures to deal with these two challenges in a mid-term management plan.

Management controlvisualization

We support massively improved communication quality in managementcontrol through the introduction of a visualization tool that expresses,in terms of the value chain, the causal relationships of risks to achievingmanagement targets, thereby eliminating misunderstandings that canoccur in theaerial combatof management meetings and replacing themwithground combatdiscussions.

Market drivenmanagement control

How can you incorporate your response to market changes, whether ingrowing emerging markets or the declining domestic market, into themanagement control process? We support the restructuring of yourmanagement control process.

Company-wide cost reduction

Small improvements x number of ofces x time = giant cost reduction.Using theabolition, simplication, automation model of operationalimprovement, we identify excellent improvement opportunities that stillexist within operations and help you to reap the benet.

New business launchingBy applying theprototype approach, a methodology effective foruntried projects, to the launch of new business in which you have noexperience, we help you to benet from aquick win.

Project acceleration

There is a large increase in the number of cases in which speeddetermines success or failure. We help to implement a project promotionmethod to meet the conditions for achieving extraordinary speed in aproject.

Global projects

Overcoming linguistic, cultural and time difference barriers leads tosuccess in global projects. Using a variety of methods backed up withour wealth of experience, we help you to cross the various barriers thathamper the success of your global projects.

What should be prioritized when restructuring global business operations? As the components of businesshave become more comprehensive and complex, it has become more important than ever before tohave a strategy for undertaking consistent management actions. At Ernst & Young Advisory, we take fulladvantage of our network of highly qualied professionals in Japan and overseas to support the planningand implementation ofstrategies that our clients need.

Our Industries

Product

Retail

Energy & Infrastructure

Life sciences

Healthcare

Financial

Automotive

Real Estate

Our Solutions

Strategic direction

Approach example (Introduction of management control during period of decline)

Step1

Step2 Step3

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Issue

Divisin gniztinCutue giving ssignents t pepeExpeiene suessInten petitinSpeed

5 barriers

Withdw ntSeni pnningVisuiztin dePMO insttin deWBS deRespnse eetin deQCD de

7 tools

Our main People and organizational change transformation services


Our clients need change management support when they do not have the capacitiy or capability todeliver performance improvement results.

Our clients need to continuously manage their workforce to deliver in line with the changing businesspriorities and customer demands.

Our clients need to continually adapt to change due to which improvement programs arerequired that can lead to a more effective and efcient Human Resource organization.


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Our main Retail services

Examples of Retail projects

Examples of Product projects

Service area Description of main services

Streamlining andcycle-shortening of productplanning process

Helping you to streamline business talks, specication denition, andplanning, based on the trends and partner collaboration in a major mail-order company

Support for hypothesisverication MD using ID-POSdata analysis

Assisting you in conducting a feasibility study before an ID-POS analysissystem is installed, or with your tool selection, implementation, andBusiness Process Outsourcing operation in major retailers.

Support from logisticsstrategy planning through toimplementation

Helping you, as a major food wholesaler, with strategic planning,process design, and contractor selection for reorganizing yourdistribution base

Support for stock reduction andorder streamlining

Assisting you, as a major mail-order company, in improving forecastingaccuracy and in adjusting stock levels by installing ARBI*, Ernst & YoungAdvisory's unique demand prediction and stock level model*Arrival Rate Based Inventory


Global Supply ChainRestructuring

Supporting cost reduction measures by reviewing the visualization of thecommercial distribution structure and the challenges, estimating and analyzingthe effects of optimizing the supply chain, and drawing up a basic concept andaction plan.Helping to plan, install and establish a tool that supports demand prediction .Assisting in the restructuring of the supply chain on the basis of the merits of

international taxation, such as customs duties, in collaboration with Ernst &Young Shinnihon Tax.

Group ManagementInfrastructure Restructuring

Support in the construction of a functional layout for a parent company or forgeneral regional companies or locally-incorporated companies.Support with the intra-group authority; with responsibilities when a general

regional company is established, and with a performance management system.Helping to integrate business management by reconstructing a business

management data system previously uncoordinated between differentbusiness companies.

Indirect DepartmentTransformation

(Introducing Shared Services or Business Process Outsourcing)Identifying your current process problems in the areas of accounting, human

resources, IT systems, and purchasing, then selecting the areas for reform orimprovement by using a benchmark analysis.Upon completing a benchmark analysis, choosing an outsourcing provider,

then supporting your shift to new processes and a new organization throughthe time of their establishment .

Amid major changes in the consumption environment due to the low birth rate and aging population,decreasing population numbers, stagnating individual earnings, and rising consumption tax, the retailindustry is facing wide-ranging challenges.In addition, consumer behavior is being transformed by the increasing popularity of computers and smartphones. Survival in this turbulent environment requires making pre-emptive strategic changes irrespectiveof existing business structures and trade relationships.Ernst & Young Advisory's retail sector aims to provide services - from strategic planning to process designand implementation - which are workable and are necessary to respond exibly to, and increase revenuefrom, the markets surrounding consumer goods and the retail industry.

Our Industries

ProductOur Industries

RetailAgainst the background of the economic stagnation, the deteriorating cost competitiveness, and thegrowth in the emerging markets, Japanese manufacturing accelerate developing new business and/or shiftingtheir production sites in overseas. As they expand their business in overseas, they become facing newvarious business challenges such as globally restructuring of organization, supply chain, or infrastructureof group management for timely/effective decision-making.Ernst & Young Advisory with well experienced consultants in the manufacturing can support thesechallenges and assist your company to become a global company by providing an end-to-end service, fromstrategy development to business process re-engineering/system implementation & change management.

Our main Product services

Global Supply ChainRestructuring

We provide an end-to-end service, from strategy development and to re-engineering/system implementation & change management. This serviceaims to resolve challenges in the supply chain that have emerged alongwith rapid global expansion, such as overstocking, stock shortages andincreases in operating costs.

Group ManagementInfrastructure Restructuring

To ensure the achievement of management targets, it is essentialthat daily decision-making in each group company be directly linkedto improving the performance of the group as a whole. We willsystematically set Key Performance Indicators (KPI) for eachorganizational level in line with the group management targets for yourcompany, and support the building of a process base and system base forgroup management using these KPI.

PMI (Post Merger Integration)

Reorganization requires simultaneous and parallel integration ofschemes, processes, systems, and organizations. We not only dointegration work with experts in various elds but also help to generatethe effects of project control, change management, and businessreorganization in order to bring multiple organizations of differingcultures together into one.

Indirect DepartmentTransformation

(Introducing Shared Services or Business Process Outsourcing)Indirect department costs tend to rise as business locations increase,such as in the penetration of new business or emerging markets. Weselect the optimum methods of reform for your company and supporttheir introduction and establishment, such as Business ProcessOutsourcing (BPO) or changing to Shared Services, in order tomanage to both reduce the cost of indirect department and sustain andimprove process quality.

Cost Management Reinforcement

We not only provide data to assist in cost-reduction activities atproduction sites in Japan and overseas, but also help to strengthen yourcompany's cost management by reconstructing the schemes, processes,systems and organizations concerned with cost management, with theaim of achieving cost management that can deliver timely and accuratecost data that contributes to management and sales decision-making.

Product development processesand tool install and run

Retail services deals with product development processes and toolintroductions as well as with operational support in helping you inresolving problems including deteriorating prot margins or continuousdisposal sales due to misunderstandings market needs and demand.We help to install and run integrated processes aimed at accuracy andefciency, from product planning and development to market launch andevaluation.

ID-POS data analysis introductionand operational support

Rather than simply install a tool, our Business Process Outsourcing(BPO) services support your redesign, establishment, and running ofa hypothesis verication function centered on data analysis, so that youcan apply your accumulated customer purchase data (ID-POS data) toyour marketing and merchandizing operations.

Logistics strategy planningsupport

We help to restructure not only your logistics but also the logisticsfrom the perspective of the entire supply chain -from manufacture toselling - covering everything from the initial diagnosis to total design andcontractor selection. This is a powerful tool in the present environment.

Stock adjustment toolintroduction and operationssupport

We can support your planning, development and operation of a demandprediction model and stock optimization solution to deal with the variousproblems that occur due to inaccurate demand forecasts or inadequatebasic inventory models (these problems include a worsening cash owdue to overstocking, missed sales opportunities and drop in corporate

trust due to product shortages or other factors).

Business areas and issues with which we can supportBusiness areas and issues with which we can support

Our client wants to resolve the risks posed by international taxation and supply chain inefciency –risks resulting from the rapid globalization of production and markets.

Our client wants to overhaul its group management infrastructure, including its overseas subsidiaries,to make a timely/effective decision so as to ensure th e accomplishment of their management plan.

Our client wants to improve its protability by pushing through further cost reductions in theirindirect department, aiming at domestic business areas where signicant growth cannot beexpected in the future.

Our client wants to optimize its organization through faster improvements to its processes, thisto quickly take advantage of synergies gained through reorganization.

Our client wants to know its customers better and analyze and redene the value they provide, and toreform itself so as to contin ue to create acustomer experience.

Our client wants to rejuvenate its stores and raise customer satisfaction levels by accepting theutilization of big data and restructuring its marketing and merchandizing operations.

Our client wants to improve orders and stock control by forecasting store demand, this to raisecustomer satisfaction levels while simultaneously improving the ef ciency of their fundingoperations.

Our client wants to analyze and utilize the purchase data and social d ata of their retail partnersto raise the success rate of their new products.

Our client wants to analyze their own cost structure based on examples of leading companiesso that they can streamline merchandizing expenses, optimize labor costs , and decreasedistribution costs.


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Our main Life science services

The life sciences industry, already under strict legal regulation and exposed to severe global competition,is facing urgent measures for structural change due to the emphasis on preventive care in our agingsociety, the government's policy of curbing the growth in health care costs, and the emergence of genericdrugs.Ernst & Young Advisory's life science sector professionals provide businesses with strong support,creating a clear vision of the future and pushing through solid execution. We can deliver a wide rangeof services from strategic planning for whole companies or individual products and branding to processimprovement, compliance strengthening and IT solutions.

Our Industries

Energy & InfrastructureOur Industries

Life sciencesThe Great East Japan Earthquake provoked the strong interest in energy policy-making worldwide. Today,Japanese energy industry faced the dynamic change; increased renewable energy use and separationof electrical power production from power distribution and transmission. Also, a signicant change ininfrastructure business is triggered by the following factors: declining birth rate, aging population indeveloped countries, and demographic change due to population expansion in emerging countries.Ernst and Young Advisory provides the best solution for the challenges that are not One-Fits-All, suchas developing strategy for energy companies/manufacturers, smart city planning for the government, andpackaged infrastructure export -through our global network.

Our main Energy & Infrastructure services

Emerging Market AdvancementSupport

Offer an array of services, including screening, evaluating, selectingtarget countries for a global expansion and developing the strategy ofadvancing into foreign market s .(by Self-funding/Alliance/M&A, etc.)

New Business DevelopmentStrategy

Offer an array of services to Energy & Infrastructure rms to developstrategy of starting business and evaluate and select target alliancecompanies.

Japan Market AdvancementSupport for Foreign Companies

Offer an array of services to foreign companies to advance into Japanesemarket by conducting feasibility study, selecting optimal alliancecompanies, and providing alliance support.

Consolidated BusinessManagement Support

Support to build a consolidated business management system to collectnancial information by businesses, and regions, which help making adecision promptly.

Strategic planning for overseasexpansion

Construction of a globalmanagement base

Accelerating the development and penetration into emerging marketsand review existing overseas businesses.

Internationalization of head ofce; management restructuring to makeoverseas ofces more self-reliant.

Product strategy planning

Product portfolio strategy and new-product launch strategy proposals.

E-promotion strategy proposals, content and web vendor selection,production supervision, effect measurement.

Sales strategy planning

Segmentation and targeting.

Reallocation of resources across multiple products, optimization of MRterritories.

Establishing sales PDCA cycle.

Establishment of management

accounting methods

Reduction in manufacturing costs.

Optimum allocation of sales and administrative expenses.

Reinforcement of internal control

Constructing and maintaining a risk control system, compliance systemand internal audit system.

Redesigning authorization and application processes, introducingworkows.

Business areas and issues with which we can support Business areas and issues with which we can support

Wish to expand business in emerging markets with your competitive products and services due to aslow growth of Japanese market.

Wish to start a new business in an exsting industry or a new technological area in the increasinglycompetitive environment due to globalization.

Wish to develop management control system to make a prompt decision on foreign operationsdue to the lack of visualization of business management.

Our client wants to implement robust company-wide organizational changes in order to achieve therevenue targets in their mid-term management plan.

Our client wants to review their cost structure based on advanced cases of Japan ese and overseascompanies in the same industry, and to reduce their overall costs.

Our client wants to achieve improved compliance with related laws and company and industryrules (such as codes of fair competition, transparency guidelines, etc.) and at the same timeraise operational efciency.

Examples of Energy & Infrastructure projects


Japan Market AdvancementSupport for Foreign PowerGeneration Company

Assist foreign power generation companies in selecting Mega Solarsites, modules, power conditioner, EPC and O&M company as wellas ling all the necessary applications to landowner, Electric Powercompany and METI, and discussing and negotiating with them asneeded.

Smart Grid BusinessDevelopment for ElectricPower Company

Assist Electric Power company comprehensively in developing strategyof smart grid business by setting business KPIs, building cyber securityplatform, supporting application procedure for government subsidies,proposing client care plans, etc.

Smart Grid BusinessDevelopment for ElectricPower Company

Assist local and regional government in propelling smart city business asa facilitator and a project manager by coordinating relevant companies,researchers, etc. to create a consortium and structuring and developingan idea and a concept of smart city business.

Due Diligence ofUrban Planning andBusiness Support

Assist local and regional city in recovering from natural disasters andplanning smart city project by researching and studying an economical,social and cultural impact on the society, supporting local small/mid-sized companies and venture rms, and planning and arranging thewhole structure as a project manager.

Examples of Life science projects


Streamlining of sales andmarketing

Providing support for the following projects: (1) reallocation of MRresources, (2) customer selection and segmentation, (3) promotionmix and marketing processes, and (4) improvement of salesperformance assessments.

Organizational transformations

Conducting external stakeholder mapping and creating multi-stakeholder strategies. Identifying the enabler and pivotal rolesinside companies that form cross-functional structure. Implementingcapacity development in all functional departments in order to executebrand strategy.

Conduct program management, change management, and analysis oninternal communications and recommend an action plan.

Cost-cutting

Reducing costs by integrating a number of functions, such as salesand marketing, transferring control of indirect operations to low-wageregions or shared service centers.

Building practical target models as a guide for the restructuring ofcompanies.

Internal controls

Supporting clients in building their Standard Operating Procedures andin providing related training and monitoring.

Reforming business processes while simultaneously improvingcompliance .


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Our Industries

HealthcareThe environment surrounding medicine is becoming increasingly severe year after year, and the priorityissue seems to be stabilizing the management base for the future so that hospitals can consistentlyprovide the medical care that communities require. More specically, what hospitals need to do from nowon is to detect the main problems quickly and establish management improvement action rapidly. At Ernst& Young Advisory we analyze customers' issues and problems and provide various timely and suitableservices toward realizing sustainable growth.

Our main Healthcare services

Flow of services (Example of general model in management improvement)

Our Industries

Financial

Our main Financial services

Examples of nancial projectsResponse to the Basel Accords

Response to IFRS


Operational servicesSupporting dening the requirements for risk control operations

stipulated in the Basel Accords and streamlining and upgrading ofoperation.

IT related services

Supporting system installation in response to the Basel AccordsDening risk assets calculation / parameter estimation system

requirements.

UAT (system receipt and inspection) support.

Supporting package and vendor selection.

Project managementOverall implementation and control of projects related to the Basel

Accords.

Control of projects to install risk control systems.


Operational services Studying the impact on operations.

Supporting new operational design resulting from IFRS.

IT related services

Studying the impact on related systems.

Supporting systematization design planning.

Helping to dene systematization requirements.

Supporting package and vendor selection.

Project management Overall implementation and control of IFRS applications.

Individual project control.

Current analysis phaseIssue identication and

improvement proposal phase Improvement execution phase

Marketing analysis

Financial and management resource analysis

Medical function analysis

Benet-risk analysis by department

Efciency and productivity analysis

Organization revitalization diagnosis

Management control system assessment

Issue identication by hearing Study of management control tools

Benchmark comparison analysis

Issue identication

Verication of critical success factors

Formulation of action plan

Decision on improvement execution planMonitoring done through actual

versus forecast management

Plan

DoAction

Check

Income improvement support

Medical revenue improvement programMarketing enhancement strategy, main division enhancement strategy,patient and revenue growth strategy

Cost reduction programProper employment costs, material costs and overhead costs, review ofcommissioning, proper capital investment

Management control support

Construction of management control system, cost price control &income control, BSC and target controlStrengthening of management control system, strengthening of costprice control function, support for improved quality of medical care

Hands-on management support, organization and personnel systemimprovementAssigning management control specialists, reviewing various systemsto revitalize the organization.

Facility redevelopment support

Setting a future vision, basic plan, and design conditionsCreating a master plan, drawing up a business plan, reviewing facilityfunctions and construction costs

Support for divisional management plans and construction of medicaldata systemCreating management plans for each division, supporting installation ofmedical data system, drawing up outsourcing plan

Business revitalization support

Revitalization plansFinancial due diligence, business due diligence, drawing up a businessstrategy, planning a revitalization scheme, studying nancial supportmeasures

Execution of revitalizationM&A support, securing personnel needed to run the hospital, projectcontrol until the hospital opens

Medical policy support

Survey and analysis of medical policy trendsSurvey of regional medical policies, various types of surveys formedical treatment fee revision, support for high level medicaltreatment and advanced medical treatment

Support for IT in medical treatment

Support for introducing various kinds of IT into hospitals and medicalrelated institutions in response to medical policy trends

Operational services

Consulting on the design and improvement of organizations and operationsSupporting the planning of operational analysis and designHelping to dene operational requirementsSupporting the creation of a regulation response, provisions, etc.

IT related services

Consulting related to IT

Supporting the planning of systematization conception and designplanning

Dening requirements for systematization

Project managementWe work in close cooperation on multiple projects and help with reportingto the proper steering committee etc. and with quick and suitabledecision-making

In the distribution of roles within a bank's tangled web of operations, application systems, and internalrelated departments, a key issue for management is improved efciency with exibility, speed, andadequate internal control. To achieve operational improvement and streamlining,Ernst & Young Advisory provides advisory services related to organization, process and systemreconstruction while also supporting project management covering complex task dependence and relatedexternal factors during installation of those new processes and systems.

Business areas and issues with which we can support Business areas and issues with which we can support

Because the strategy for responding to changes in the medical environment is unclear, our client doesnot fully understand the best direction for hospitals to follow in future.

There is insufcient cash ow to enable capital investment required for rebuilding the hospital orstrengthening the management base.

Our client is aware of the management problems but does not know how to take action onimprovement points, improvement measures, and implementation.

Our client wants to check how its existing business will be impacted by new regulations and toimplement the required changes after efciently nding out what they are.

Our client wants to efciently compile the operational requirements and system requirementsfor installing a new system or reviewing an existing system based on demands and changes in thenancial markets.

In a complex project that overlaps into multiple divisions or overseas ofces, our client wants toefciently grasp the project progress and implement management.


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Our main Automotive services

Examples of Automotive projectsService area Description of main services

Consolidated businessmanagement support

Supporting the improvement of a platform for managing by productprotability information on a consolidated basis. Revenue and cost dataof each product category (completed vehicles) are acquired from headofce, manufacturing subsidiaries and sales subsidiaries.

Overseas expansion supportHelping to draw up an accounting system deployment plan forsubsidiaries in the ASEAN region, and introducing the plan via ourumbrella company in the region.

IFRS introduction support

Support the conversion of Japanese accounting standard to IFRS withthe establishment of a group company accounting policy, assessment ofthe change impact on business processes and information systems, andits deployment to subsidiaries.

The environment of the automotive industry has changed greatly due to the nancial crisis triggered bythe bankruptcy of Lehman Brothers in the fall of 2008 and the Great East Japan Earthquake and severeooding in Thailand in 2011. Complex and diverse key issues need to be addressed if growth is to beachieved with the industry in the future. These issues include improving protability in Japan's domesticmarket, which has matured due to its aging population and the younger generations' movement away fromcars, and corporate reorganizations on a global scale in line with their overseas expansion into emergingmarkets, particularly China and India. There is the issue of developing new technologies to cope withincreases in oil prices and regulations on CO2 emissions.Ernst & Young Advisory provides services which help companies in the automotive industry resolve thebusiness issues they face and to improve the actual processes used for operating the company. Theservices range from establishing a corporate vision and strategy to enhancing the base on which thecompany is managed so as to realize them – this base being speci cally its human resources, organization,business processes and information systems.

Our Industries

Automotive

Supporting consolidated businessmanagement

We support the transformation of consolidated business managementplatform that can gather protability information by segment, suchas by business line and by regional sector to achieve fast managerialdecision-making at a global level, and accurate by product protabilityinformation on a consolidated basis for the planning and development ofnew vehicles.

Supporting dealer management

As the sales volume of new vehicles in Japan continues to decline, wesupport the improvement of a business management platform thatachieves not only the management of new vehicle sales but also includingafter sales care such as parts sales and repairs, and help them streamlinetheir business process and reform their sales force operations.

Supporting business strategyformation

In response to drastic changes in external circumstances, we providesupport for planning global level business strategy and regional strategy,investment strategy toward the development of new technology, andstrategic alliances and M&A.

Supporting overseas expansion(to emerging nations)

We help expansion in the emerging markets, such as BRICs and ASEANnations by supporting local market research, incorporation, and thedeployment of new business process and information system.

Supporting the formation of aglobal supply chain

We provide support for building a globally evolved supply chain that linkscompleted vehicle manufacturers to parts and materials manufacturers,and for developing the relevant business processes and informationsystems.

IFRS deployment supportFor investors to be able to make comparisons with overseas competitors,IFRS based disclosure is required. We help our clients with the task ofconverting from an existing accounting s tandard to IFRS and related ITsystem.

In addition to the above services, we also provide other forms of suppor t utilizing EY's global network.

Our Industries

Real Estate

Real EstateManagement SolutionConceptual Diagram

Core systemBI system

Operation

Buildingmaintenance

Rentalguarantee

Propertymanagement

Planning&Sales

Salesmanagement

Assetmanagement

Total system

Management

Planning andDevelopment

Markets are becoming increasingly diversied and advanced, seen in things such as Asian marketpenetration, property intensication into companies with specialized skills, and the creation of newbusiness categories. Maintaining a competitive edge therefore requires an operational infrastructurethat can respond exibly and quickly and a data gathering and utilization infrastructure that enablesproposal-based control. While taking into consideration the customer's mission and strategy, Ernst &Young Advisory approaches this task from two angles, operations and IT, in order to create a managementstrategy.

Our main Real Estate services

Total systemWe help to set up an earnings model with a lifecycle that also takes intoaccount operational income rather than just property sales. We alsosupport multiple analyses and simulations using management data.

Planning and Development

We support improvements to core operations such as planning, siteacquisition, and execution control. We also help to measure the nancialimpact that planning and site acquisition have on the company and gaugethe long term effect that such planning will have on the company.

Sales management

We support improvements to core operations such as order control,funds management, and customer management. We also supportnancial aspects of operations such as customer targeting, effective andefcient campaigns, nancial forecasting and nancial planning.

Asset managementWe support the establishment of an operation infrastructure to maximizecash ow and asset value. We also help to formulate operational costcutting measures based on benchmark data.

Property management

We help to formulate measures for increasing the acquisition ofproperties in trust and strengthening leasing power. We also supportthe establishment of an operation infrastructure that enables higheroperation quality and lower cost operations.

Building maintenance

We support improvements to core operations such as estimates,agreements, work control, and billing and payment control. We also helpto switch to building management work including entrusted control workand to formulate a human resource development plan.

Rent guaranteeWe support improvements to core operations such as agreements,credits and debts control, and arrears reminder control. We also help toformulate a guaranteed product plan and a data utilization proposal.



The company nds it difcult to gather the data needed for protability management by segment ona global group level. A business management platform is needed which enables timely and accurateinformation for decision-making.

Our client has difculty improving protability just from operations focusing on new car sales. Ourclient wants to reform its dealerships' overall business, including after sales services such as partssales and repairs.

The company conducts a country-wide program and multiple related projects simultaneously butnds it difcult to manage projects. Projects need to be managed based on practical and effectiveproject management methodology.

Our client cannot conduct adequate property income analysis due to variations in the accuracy andgrade of collected data. Our client wants to construct a management infrastructure that enablesprompt action.

Front operations such as estimates and agreements and back ofce operations such as receipts andpayments and account processing are separated. Our client wants to construct an operational datainfrastructure that links them consistently.

Operations are dependent on individuals and the d ata infrastructure is obsolete. Our client wantsto construct an infrastructure that enables low cost operations and concentrate its resources onits core operations.


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Our global network

Japan Business Services

Our Japan Business Service1, a network of more than 350 Japanese-speaking professionals2 and 3,000-plus local professionals stationedin more than 60 cities worldwide, seeks to liaise closely with Japanesecompanies who are expanding their businesses oversea.

1The Japan Business Service (JBS) is a network governed byShinNihon LLC.

2Including Japanese secondees assigned overseas

Inbound Business Service

To meet the needs specic to foreign companies who are expandingtheir business in Japan, we leverage the global network of EY to provideoptimum services.

▶ By utilizing the global network of EY, we can help to achieve smoothcommunication necessary when deploying client's global initiatives inJapan.Supporting project progress in accordance with head ofce vision and

strategy.Supporting the assessment and decision making of solutions that are

harmonized with Japan-specic needs and global requirements.

▶ Prompt and accurate communication achieved by bilingual professionalswho are skilled with various businesses and industries knowledge.

Service which utilized the global network of EY

Our global network

Global network serviceEY seeks to provide consistently high quality services that meet the needs of companies, regulatingauthorities, and investors worldwide in the globalizing market. To that end, we deploy internationalbusiness management under coherent management and governing structures, by integrating our memberrms in different countries into four areas to strengthen their collaboration.

Please refer to P.25 for EY member nation area.


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Outline Name Ernst & Young Advisory Co., Ltd.Business details Advisory work to maintain and improve client performance,

such as:

▶ Management consultingManagement diagnosisStrategy planningAlliances

▶ Business process consultingOperational improvementOrganizational improvement

▶ IT consulting IT strategy Project planning

Founded November 1, 2010

Capital 450 million Japanese yen

Representatives Chairman and representative director: Setsuo KatoPresident and representative director: Haruhiko Matsui

Ofce Head ofce:Kasumigaseki Building, 29F, 3-2-5 Kasumigaseki,Chiyoda-ku, Tokyo, JapanTel: +81 3 3503 1490 (main switchboard)Fax: +81 3 3503 2818

URL http://www.eyadvisory.co.jp

As of March 2014

New YorkBoston

AtlantaDallas

Huston

Mexico City

Sao Paulo

Buenos Aires

TorontoKitchener

Columbus

San JoseSan Francisco

VancouverSeattle

Los Angeles Irvine

Salt Lake City Chicago

Tokyo

Honolulu

Seoul

DalianBeijing

Tianjin

Shanghai

Taipei

Hong KongShenzhenGuangzhou

Ha Noi

BangkokYangon

Ho Chi Minh

New Delhi

Mumbai

Babgalore

Moscow

Stockholm

Warsaw

Frankfurt

Munich

Dusseldorf

Paris

Milan

Brussel

London

LutonReading

Amsterdam

Kuala LumpurShingapore

PerthSydney

Brisbane

Melbourne

Jakarta

Guam

Saipan

New YorkBoston

AtlantaDallas

Huston

Mexico City

Sao Paulo

Buenos Aires

TorontoKitchener

Columbus

San JoseSan Francisco

VancouverSeattle

Los Angeles Irvine

Salt Lake City Chicago

Tokyo

Honolulu

Seoul

DalianBeijing

Tianjin

Shanghai

Taipei

Hong KongShenzhenGuangzhou

Ha Noi

BangkokYangon

Ho Chi Minh

New Delhi

Mumbai

Babgalore

Moscow

Stockholm

Warsaw

Frankfurt

Munich

Dusseldorf

Paris

Milan

Brussel

London

LutonReading

Amsterdam

Kuala LumpurShingapore

PerthSydney

Brisbane

Melbourne

Jakarta

Guam

SaipanManilaManila

51,000 people

29,000 people7,000 people

88,000 people

Ernst & Youngs global network and member nation areas

Japan area

EMEIA area[Europe, Middle East, India and Africa]

As of June 2013

Asia Pacic area

Americas area

JBS network1 hubs

1 The Japan Business Service (JBS) is a network governed by ShinNihon LLC.


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About EY

EY is a global leader in assurance, tax, transaction and advisory services.

The insights and quality services we deliver help build trust and confidence

in the capital markets and in economies the world over. We develop

outstanding leaders who team to deliver on our promises to all of our

stakeholders. In so doing, we play a critical role in building a better working

world for our people, for our clients and for our communities.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst &

Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UKcompany limited by guarantee, does not provide services to clients. For more information about our

organization, please visit ey.com.

About Ernst & Young Advisory Co., Ltd.

Ernst & Young Advisory is an EY member firm. Always present at the

front line of business change, our advisors use their expertise and a global

cooperative network so that they can provide a wide range of clients with

advisory services to enhance their businesses. In this way, we contribute to

building a better working world.

For more details, go to www.eyadvisory.co.jp.

© 2014 Ernst & Young Advisory LLC.

All Rights Reserved.

This material has been prepared for general informational purposes only and is not intended to berelied upon as accounting, tax, or other professional advice. Please refer to your advisors for specificadvice.

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