#1GERMANY 0 30 60 km POLAND Ústí nad Labem PRAGUE Plzeň Décin Liberec Hraded Králové BOHEMIA Ostrava Ceské Budějovice Olomouc. Mosavien MORAVIA Gale Brno SLOVAKIA AUSTRIA HUNGARY Green Investment in Czech Republic Nobue Sato#2Presentation 1. Basic information 2. Why Czech Republic? 3. Why renewable energy industry? 4. How to make investment?#31. Basic information About Czech Republic#4Key Information on the Czech Republic Area 78,864 km² Prague (1/5 of Japan) Population 10.5 million (1/10 of Japan) Capital Location Currency Political system Head of state In the center of Europe CZK. Koruna I CZK = 4.5854 YEN Parliamentary democracy President Vaclav Klaus Czech Language www.pailcewes.COKD Membership EU member since 2004 4#5TB 2. Why Czech Republic? Cluster and Foreign Direct Investment#6Attractive investment climate 6 People • Well-educated and skilled workers Favorable labor costs Technology Location High mechanical technologies from historical background as a traditional industrial country Good access to established western and emerging eastern markets#7Cluster initiatives in the Czech Republic ▸ Three state-wide clusters ▸ Automotive ▸ Brewing LZEN ▸ Machine building 8355 0451 ▸ High Potential for the Future ▸ Nanotechnology ▸ Biotechnology, Life Sciences and Medical Devices ▸ Renewable and Alternative Energy Pilsner Urque ZEN CZE CZECH#8Good relationship with Japanese companies ■ 製造業 ■ R&D, サービス ■協力 OEM • DIC 株式会社 EPISPOL シミズ工業 LIPLASTEC デンソー DENSO 旭硝子 愛知製鋼 1 IPS アルファテクノロジ IPS ALPHA TECHNOLOGY EUROPE 2 高田工業 TAKADA 3 パーカーコーポレーション PC INTERNATIONAL 4 石工業 ISHIMITSU 5 産業 RYUSYO INDUSTRIAL 6 ジェイテクト STEKT 7 三菱電機 EPCE 8 大塚製薬 INTERPHARMA OTSUKA 9 リガク Rigaku 10 パナソニック株式会社 PANASONIC AVC NETWORKS AGC トライス AICHI MAGFINE タカタ TRIS デンソーエアーズ TAKATA PETRI PARTS 青山製作所 DENSO AIRS AOYAMA 京セラ 10 不二工機 KYOCERA FUJIKOKI 東海理化 コマツ TOKAI RIKA KOMATSU 豐田合成 TOYODA GOSE! 5 不二越 NACHI FUJIKOSHI オイレス工業 OILES 三菱電機 小糸製作所 愛三工業 MITSUBISHI ELECTRIC 7 住友軽金属 KOITO AISAN SUMKE 昭和アルミ JSP 株式会社 ハリマ化成 SHOWA ALUMINIUM HARMA CHEMICAL 黒田電気 COSMO KURODA JSP INTERNATIONAL 尼崎パイプ 古河電気工業 カヤバ工業 8 AMAGASAKI PIPE FURUKAWA ELECTRIC オリンパス 三井物産 MITSU KAYABA OLYMPUS パナソニック電工 PANASONIC 東洋ラジエーター ELECTRIC WORKS TOYO RADIATOR アサヒビール スリーボンドASAHI BEER トヨタ 矢崎総業 YAZAKI CORPORATION ダイキン 押谷産業 THREE BOND PRAGUE TOYOTA MOTOR/PSA ジェイテクト JTEKT パナソニック モバイルコミュニケーションズ PANASONIC シーメンス松下 EPCOS 6 村元工作所 AUTOMOTIVE SYSTEMS OSHITANI SANGYO DAIKIN MURAMOTO INDUSTRY 京セラ AVX JCCエンジニアリング PLZEN アスモ JCC ENGINEERING 東予産業 CELCO DAIHO KOGYO PANASONIC AVC NETWORKS 大宝工業 パナソニック株式会社 「三協オイルレス SANKYO OILLES ASMO コマツ KOMATSU シマノ SHIMANO OSTRAVA ニチリン NICHIRIN 住友商事 オーナンバ STEEL CENTER EUROPE フタバ産業 ONAMBA 筑水キャニコム FUTABA IND アルプス電気 ALPS ELECTRIC オーナンバ O&M SOLAR CHIKUSUI CANYCOM 加賀電子 KAGA ELECTRONICS ゼクセルヴァレオ 日本ニューマチック工業 アイシン精機 ZEXEL-VALEO NPK AISIN タツノ TATSUNO オリンパス OLYMPUS 東レ TORAY INDUSTRIES 日本化薬 INDET SAFETY 日本化薬 NIPPON KAYAKU 土屋 BBH TSUCHIYA 日本メクトロン FREUDENBERG MEKTEC 豐田自動織機 TOYODAAW. LOOMS Data as of Sep.2008 by CzechInvest ダイキン BRNO SYSTEMS DAIKIN 大同メタル 日本化薬 DADO METAL 日東電工 NITTO DENKO オークマ INDET SAFETY SYSTEMS OKUMA タムラ製作所 TAMURA ニチアス NICHIAS#9Impressive FDI Results ▸ Hosts over 65,000 foreign companies ▸ Subsidiaries of ABB, Continental, DANONE, Ford, Panasonic, Nestle, IBM, DHL, Procter & Gamble, Honeywell, Renault, Siemens, Tyco, Rockwell, and Volkswagen, etc. Panasonic ideas for life DAIKIN DHL= TOYOTA ☑D HYUNDAI Honeywell KYOCERA IBM® SIEMENS 9#103. Why renewable energy industry? Incentives and supports#11Environment issues in Czech Republic 1. Environment guideline established by EU (EU ETS) ▸ Target % of renewable energy consumption of total energy consumption 8% in 2010 20% in 2020 2. Emission Trading between Czech & Japan (3/31/09) ➤ 40 million tons of emission trading using GIS • The use of purchase price (50 billion yen) ✓ renewable energy & energy saving in housing sector ✓ technology transfer from Japan#12Example (1) Solar panel production by KKYOCERA ▸ Leading company of photovoltaic system technologies ▸ Kyocera's first European solar production plant ▸ Location: Northern Czech town of Kadan ▸ Operation starts in 2004 ▸ 306 employees ▸ Produce high quality solar cells and modules KYOCERA#13Example (2) Solar panel production by O&M Solar ▸ Established in 2006 ▸ Location: Olomouc ▸ Production of solar panel ‣ 60 employees ▸ Joint Venture by Onamba (85.1%) and Mitsui (14.9%) Human Interface AND Onamba Co., Ltd. Mitsui Out Salar#144. How to make investment? M&A Advisory or project finance#15Which company to invest in? Criteria for company selection Industry Market Management Leader Team Company Global renewable energy investment growth (1995-2007) US $ Billion 80 60 50 40 40 20- Other Solar PV Profitability Potentiality Wind power 0 1995 1997 1999 2001 2003 2005 2007 15#16Project finance in CZ (Hypothetical) Investor A Investor B Investor C 70% 15% Financing agreement (Joint Venture) Green Factory Financial Institution project in CZ 11 IFC International Finance Corporation World Bank Group Loan Loan (for the country risk) 15%