FY2012

Subsidy for Projects Promoting the Domestic

Location of Innovative, Low-Carbon

Technology-Intensive Industries

Application Guideline

(Provisional Translation)

METI, Regional Economic and Industrial Policy

Group

June 2012

Index

Page No.

1. Program Objectives and Subsidized Investment Projects.....................................................................1

2. Subsidized companies of Subsidy………….................................................................................…....1

3. Subsidy Rate and Subsidized Costs......................................................................................................3

4. Project Implementation Period.............................................................................................................4

5. Requirements for Subsidy Subsidized companies................................................................................4

6. Other Information.................................................................................................................................5

7. Application Procedures…………….....................................................................................................5

8. Screening Procedures and Notification of Results...............................................................................7

9. Formats of Application Documents....................................................................................................10

1

1. Program Objectives and Subsidized Investment Projects

(1) Program objectives

This subsidy program aims to accelerate domestic locations of factories and extensive growth of

low-carbon industries in Japan that sustain regional economies, by supporting domestic facility

investments in manufacturing equipment and facilities necessary for establishing production

technologies related to the world’s most advanced low-carbon products, which are expected to

reduce a large amount of CO2 by utilizing innovative technologies.

(2) Investment projects to be subsidized

This subsidy program provides grants on projects related to first-time installation of production

lines to manufacture products or components that are expected to have huge CO2-reduction effects

by utilizing cutting-edge technologies that can increase the performances of and spread the use of

low-carbon products.

(3) Qualification

The subsidized investment project shall apply to all of the below:

(i) Use of innovative technologies

The facility investment must pertain to manufacturing of products or components using

innovative technologies which can increase performance and reduce production costs of the

products.

(ii) Use of green technologies

The technologies and the products must be categorized in green technology field for its huge

CO2 reduction effect and fall into the technology fields mentioned in either of the following

(a)-(c) government plans and vision:

(a) “Cool Earth Innovative Energy Technology Program” (METI, March 2008)

(b) “New Innovative Environmental Energy Technology Program” (Council for Science and

Technology Policy, May 2008)

(c) “Industry for Solving of Environmental and Energy Issues” in “2010 Industrial Structure

Vision” (METI, June 2010)

(iii) Installation of the First Production Line

The facility investment must pertains to installation of the production line which belongs to

production facility of the subsidized company of this subsidy and is related to technical

innovation of the facility, and is installed by the subsidized company for the first time to

manufacture the innovative product (“the First Production Line”).

2. Subsidized Companies

Entities eligible to receive this subsidy (“subsidized companies”) shall be private enterprises that

satisfy the qualification stated in 1. (3), and shall be able to fulfill responsibilities to manage and

operate the facilities after completing this subsidy program.

Listed companies which are supposed to have sufficient cash and deposit balance for such

investments1)

are not to be covered by this subsidy program.

Small and medium-sized enterprises (“SMEs”) and medium-sized enterprises refer to companies

and individuals that satisfy the “capital criteria” or “employee criteria” as seen below.

2

Capital Criteria

(Capital amount or total amount of investment)

Employee Criteria

(Number of workers regularly employed)

Medium-sized

enterprises

Maximum of 1 billion yen --

SMEs2)

Maximum of 300 million yen Maximum of 300 employees

Notes:

1) Listed companies of which cash and deposit balances fall into the following formula are excluded:

Cash and deposit balance - monthly average sales × average receivable turnover months –

investment costs to be subsidized > 0

(Average receivable turnover months: SMEs 4.4; medium-sized enterprises 3.4; others 2.4)

2) SMEs corresponding to the following items are also excluded (the subsidy rate for companies other

than SMEs is applied to the following enterprises):

- A corporation of which one-half (1/2) or more of its total number of issued shares or invested

amount is owned by a company other than SMEs (hereinafter referred to as a “Large

Corporation”) (excluding certain venture capitals, small and medium business investment and

consultation corporations, and limited partnerships for venture capital investment) (hereinafter

referred to as “Deemed Large Corporation).

- A corporation of which one-half (1/2) or more of their total number of issued shares or invested

amount is owned by a Deemed Large Corporation (excluding certain venture capitals, small and

medium business investment and consultation corporations, and limited partnerships for venture

capital investment.)

- A corporation of which two-thirds (2/3) or more of its total number of issued shares or invested

amount is owned by multiple Large Corporations (including Deemed Large Corporations but

excluding certain venture capitals, small and medium business investment and consultation

corporations, and limited partnerships for venture capital investment.)

- A corporation of which one-half (1/2) or more of its total board members are board members or

employees of a Large Corporation (including a Deemed Large Corporation but excluding a certain

venture capital, small and medium business investment and consultation corporation, and a

limited partnership for venture capital investment.)

In case lease transactions are involved in the installation of the production equipment, the

manufacturing company and the leasing company may jointly apply to this program, but only one

leasing company may participate per application. In this case, the applicants shall present

documents, stating necessary costs such as base amounts of lease payment, costs of funds (or the

basis of the interest rate), fees, insurance expenses and taxes, in both cases (with or without subsidy

grants), to prove that the amount equals to the subsidy grant is deduced from the lease payments. In

addition, the lease contract period shall last at least to the end of the disposition limitation period of

the installed equipment (in case multiple items are involved, the longest period shall be covered).

Finally, Installment contracts may not be included in the leasing transactions.

3

3. Subsidy Rate and Subsidized Costs

(1) Subsidized costs and subsidy amount limit

Name of

Subsidy

Subsidized Projects Subsidy

Amount

Limit

Categories of

Costs to be

Subsidized

Details

2012

Subsidy for

Projects Promoting

the Domestic

Location of

Innovative,

Low-Carbon

Technology

-Intensive

Industries

(i)Facility

costs

Costs needed for the installation etc. and

purchasing of equipment, machinery and

devices used at the production facilities of the

subsidized enterprise

1.5 billion

yen

(ii)Research

and design

costs

Research and design costs needed for the

installation etc. of the above mentioned

equipment, machinery and devices

The following expenses are not covered by this subsidy program.

- Expenses for orders, purchases, and contracts that are made before the subsidized company

determination date

- Costs for the removal of existing facilities and for construction and extension of factory buildings

- Personnel expenses and costs for internal survey and design of applicant companies

- Transfer fees

- Interest and late payment charges on loans, etc.

- Leasing charges for lease transactions for machinery and equipment between joint applicants and

outsourcing costs for processing work

- Costs for purchasing general-use items (such as printers) that can be used for purposes unintended

under the subsidy

- Other than those above, expenses commonly considered to be inappropriate for the use of public

funds

(2) Subsidy rates

Subsidy rates are as follows:

Types of subsidized enterprises Subsidy Rates

Companies except SMEs Up to one-third (1/3)

SMEs Up to one-half (1/2)

4

4. Project Implementation Period

Once the decision to grant the subsidy has been made, the subsidized project shall be commenced

promptly (by the end of March 2013 at the latest), and be completed, in principle, by the end of

March 2014.

5. Requirements for Subsidized Companies

Please be aware that the subsidized companies shall comply with provisions such as the Act on

Rationalization of Budgetary Spending on Subsidies, etc., in addition to the following requirements:

(i) The subsidized companies shall gain approval before amending the allotment or content of the

subsidized project costs, or canceling or abandoning the project, after being granted the

subsidy.

(ii) The subsidized companies shall provide a report on the progress of the subsidized project

promptly, if requested to do so during the fiscal year the subsidy is granted.

(iii) The subsidized companies shall submit performance reports either when the subsidized

project has been completed or after the close of the national fiscal year.

(iv) The subsidized companies shall manage newly acquired properties or properties with

increased utility due to the subsidized project with the due care of prudent managers, and

must administer these properties etc. effectively in accordance with the objectives of granting

of this subsidy. Such properties must be managed properly by keeping management records

during the disposition limitation periods separately specified.

(v) The subsidized companies may not dispose (use, assign, loan or put up as collateral, against

the objectives of granting of this subsidy) of the properties etc. during the separately specified

period. However, when it is necessary to dispose of such properties due to unavoidable or

unpredictable circumstances, this may be done by obtaining prior approvals, but in such a

case, part or all of the subsidy amount shall, in principle, be returned.

(vi) As accounting procedure in connection with the subsidized projects, the subsidized companies

must prepare documentary evidence clarifying their actual income and expenditure, and store

them for five years after the close of the national fiscal year in which the completion days of

the subsidized projects fall.

(vii) The subsidized companies shall submit reports on their earnings status in regard to the

subsidized projects for five years after the close of the subsidized companies’ accounting

years in which the completion days of the subsidized projects fall. If such a report indicates

that the subsidized project is recognized to be profitable, the subsidy shall be returned up to

the granted amount. Meanwhile, if the report shows that the subsidized company’s average

revenue1)

of the recent two years is smaller than its assumed average cost during the five-year

reporting period (investment costs to be subsidized, divided by five), which indicates the

subsidized company is in deficit2)

, return of the subsidy is not required3)

.

(viii) The subsidized companies shall provide progress reports detailing business circumstances

for four years following the close of the subsidized enterprise’s accounting year in which the

completion days of the subsidized project fall.

5

Notes:

1) The “subsidized company’s revenue” refers to nonconsolidated operating profit, ordinary profit

or net income of the subsidized company.

2) (Average revenue of the recent two years) - (Subsidized investment costs /5) < 0

3) In case the subsidized company has not compiled its financial result for two years because of

organizational change, etc., the financial results of the company which had operated the

subsidized project before such organizational change shall be reported and examined.

6. Other Information

(i) The payment of the subsidy shall, in principle, be settled after the performance report of the

subsidized project has been received and the amount has been confirmed due to the completion

of the project. (The subsidy will be paid by following the prescribed procedure if the project is

completed before the end of the fiscal year.) Further, if it is deemed necessary and depending on

the situation, part of the subsidy corresponding to the amount of incurred costs may be granted

during of this fiscal year, following the prescribed procedures, after checking the progress of the

subsidized project and confirming that the costs have actually been paid out.

(ii) The expenses related to this application shall not be included in the costs of the subsidized

project, because only those expenses that are incurred for the project (for ordering, etc) after the

subsidized company determination date are eligible for this subsidized program, and expenses

incurred before this date shall not be covered.

(iii) If profit is recognized due to management or lease of facilities improved by the subsidized

project, the subsidy subsidized companies must return the amount corresponding to all or part of

the granted subsidy in some cases. The amount required to be returned shall be limited to the

fixed subsidy amount.

(iv) Please be aware that applying to multiple programs subsidized by the Japanese government (and

government-affiliated special public corporations) is not acceptable (including applying to other

programs after submitting application forms for this subsidy program).

Please consult the presiding Bureau of Economy, Trade and Industry if you have questions

regarding applying to more than one subsidy program or how this program combines with

others.

7. Application procedures

(1) Application period

From: June 1(Fri), 2012 To: no later than noon of July 31(Tue), 2012 (Japan

Time)

(2) Submitting application documents

After completing the attached application forms (pp. 10-31), applicants must deliver by mail or by

hand, 11 copies of the forms, including the original and 10 copies, to the responsible department

of the Bureau of Economy, Trade and Industry that has jurisdiction over the project location by

the deadline above. (Forms must be received within the application period.)

Please be sure to submit your application forms well before the deadline to allow for any possible

delivery delays that may occur.

6

(3) Applications and Inquiries

Please submit application documents to the Bureau of Economy, Trade and Industry, which has

jurisdiction over the location where the subsidized project will be implemented. Details of the

responsible departments within the Bureau of Economy, Trade and Industry as well as jurisdiction

boundaries indicating where to send your application documents can be found on pp. 32,

“Reference: Point of Contact and Inquiries.”

The same department is available to provide advice and accept inquiries relating to this subsidy

program at any time. In order to gain a better understanding of the program, it is advisable for the

applicants to have a consultation beforehand.

(4) Internet Use

This application guideline is also available in the below website.

http://www.meti.go.jp/information/data/c120601aj.html

The application forms can be downloaded from this website.

(5) Required documents

(i) Please be sure to use the model forms attached to this guideline when preparing your

application documents. The size of the paper used for the application documents should be A4

(you may adjust the chart borders of each model form if necessary).

(ii) Please submit the original, which should be printed single-sided on A4 paper, and 10 copies

(in principle, printed double-sided) of the documents shown in the chart “List of Application

Documents” below and submit an electronic medium (a CD-R titled “Application

Documents” with the files saved in Word format).

(iii) Please be sure to input the running number at the bottom center of the pages of the documents

and make two punch halls on the long side of the papers to put them in A4 folders.

(iv) Screening will be carried out mainly by examining submitted application documents, but in

some cases applicants need to be interviewed. In addition, applicants are requested to submit

additional explanatory materials, if necessary, during the screening period.

(v) Please note that documents included in “List of Application Documents” or additional

explanatory materials will not be returned.

List of Application Documents

Documents

Name of Document Model Forms

□ Application form Form 1

□ Summary of subsidized project (and documents attached to support

information stated in this summary)

Form 2

□ Documents identifying basic details of the applicant (Form 3 &

company brochures, etc.)

Form 3

□ Business implementation structure and division of roles relating to the

subsidized project

Form 4

7

□ Financial statements (balance sheets and income statements of the

recent three fiscal years, and if the company is a consolidated entity, both

consolidated and unconsolidated financial statements need to be

submitted.)

*If an applicant has operated business for less than three years and

another company operated the investment project before the applicant,

financial statements of the latter company shall be submitted.

No Format

□ Lease contracts (draft) and lease payoff statements, in case lease

transactions are included2)

No Format

Notes:

1) Please print and submit the original and 10 copies (11 copies in total) of the required application

documents and supplementary materials, and also submit an electronic medium (a CD-R titled

“Application Documents” with the files saved in Word format). Be sure to put the name of the

applying entity on the CD-R.

2) In case lease transactions are involved in the installation of the production facilities, the

manufacturing company and the leasing company may jointly apply to this program, but only one

leasing company may participate per application. In this case, the applicants shall present

documents, stating necessary costs such as base amounts of lease payment, costs of funds (or the

basis of the interest rate), fees, insurance expenses and taxes in both cases (with or without subsidy

grants), to prove that the amount equals to the subsidy grant is deduced from the lease payments. In

addition, the lease contract shall allow the lessee to use the leased facility by to the end of its

disposition limitation period (in case multiple facilities are leased the longest period should be

covered). Installment contracts are ought not to be included in these leasing transactions.

8. Screening Procedures and Notification of Results

(1) Content of screening

(i) Basic review

(a) Qualification

Does the applicant satisfy all conditions designated in 1 (3)?

(b) Eligibility

Does the applicant possess financial capacity and management base to carry out the project

without any difficulty?

(c) Implementation system

Is the organizational structure of the applicant company adequate to implement the subsidized

project without any difficulty?

(ii) Reviews on business operations

(a) Innovativeness of technology

Is the applicant’s new product innovative enough when compared to conventional ones?

Does the applicant’s new product have commercial acceptability?

(b) Expected CO2 reduction

How much reduction of CO2 is expected through the production and spread of the use of it?

(c) Spillover effects on regional economies

Job-creation

8

Spillover effects on regional economies and industries

Business transactions with SMEs involved in the project

(d) Concerns for overseas relocation

Is there concern that domestic manufacturing may be impacted if the project is located

overseas?

Availability of relocation support initiatives by foreign governments for manufacturers of the

similar products or components

Is there concern that the project may be located overseas owing to the strong yen and other

factors?

(e) Clustering effect

Coordination with existing regional revitalization measures

Contribution to further growth of the cluster areas aligned with local characteristics

(f) Contribution for recovery from the Great East Japan Earthquake

Job-creation in the afflicted areas

Possibility of spillover effects of the project on the afflicted areas

Business transactions with SMEs in the afflicted areas related to the project

(iii) Additional information

If there is a large number of identical projects, applications will be prioritized and selected based

on the above considerations.

(2) Notification of results

The Bureau of Economy, Trade and Industry shall promptly notify the screening results (to adopt

or reject) to applicants once the decision has been made.

*Adopted applicants need to complete procedures within a designated period to receive the subsidy.

(3) Program schedule (all dates and times indicated are Japan Time)

From June 1 (Fri) to noon of July 31 (Tue) Application period

From July 31 (Tue) Screening period

From late August to early September Private announcement of selection results

From early September Grant application until determination

(4) Other

This subsidy program will handle application documents with great care, and public

announcement of application details shall not be made without the approval of the applicants in

order to protect trade secrets. However, information such as the applicants’ names, project names,

and outlines of the projects may be informed to other granting agencies for limited use, if those

agencies’ requests or inquiries are judged to be valid.

9

Please be aware that enterprises that meet any of the disqualifying conditions described below do not

qualify for the subsidy.

Disqualifying conditions

(i) A person who is subject to an order prohibiting them from receiving subsidies or an order

disqualifying them from bidding for projects conducted under the “designated bidder” system by the

Ministry of Economy, Trade and Industry (METI)

(ii) A business operator to which the following applies

1. When the owner of the business or, where the owner is a corporation, the officers of that

corporation or people who are responsible for supervising the business or their equivalent

(referred as “officers, etc.,” hereinafter) are members of an organized crime group or people

controlled by members of an organized crime group (as prescribed in Article 2, item (vi), of

the Act on Prevention of Unjust Acts by Organized Crime Group Members (Act No. 77 of

1991, referred to as the “Anti-Organized Crime Law” hereinafter),with this same definition

applying hereinafter)

2. An office that engages the members of an organized crime group, etc., in business operations,

or there is a concern that it will do so

3. An office whose business activities are controlled by the members of an organized crime

group, etc.

4. An office where the members of an organized crime group, etc., are substantially involved in

business operations

5. An office whose officers, etc., use the threat of force by an organized crime group (provided

in Article 2, item (ii), of the Anti-Organized Crime Law, the same definition shall apply

hereinafter) or organized crime group members, etc., in the service of his/her own interests or

the interests of a third party or with the aim of inflicting damage on third parties

6. An office whose officers, etc., actively cooperate in running an organized crime group and its

operations or are involved in doing so by providing funds, etc., or advantages to an organized

crime group or members of an organized crime group, etc.

7. An office where officers or persons who are substantially responsible for its business

operations have socially inappropriate relationships with organized crime groups or members

of an organized crime group, etc.

8. An office that illicitly uses an office while knowing it falls under conditions 1-4

10

9. Formats of Application Documents

(Form 1)

(MM/DD/YY)

To the Chief of xxx Bureau of Economy, Trade and Industry

Applicant Address

Name (Name of Corporation

and Name of Representative) seal

Application for FY (YYYY) Subsidy Program for Projects Promoting the Domestic Location of

Innovative, Low-Carbon Technology-Intensive Industries

I would like to make an application for the Subsidy Program for Projects Promoting the Domestic

Location of Innovative, Low-Carbon Technology-Intensive Industries as follows:

1. Objective and Details of the Subsidized Project

2. Start and Scheduled Completion Date of the Subsidized Project

(Scheduled start date) DD/MM/YYYY

(Scheduled completion date) DD/MM/YYYY

3. Costs Required for the Subsidized Project ¥

4. Costs to be Subsidized ¥

5. Subsidy Amount Applied for ¥

6. Allotment of Costs Required for the Subsidized Project, Costs to be Subsidized and Subsidy Amount

Category

Breakdown

Costs required for the

subsidized project Costs to be subsidized

Subsidy amount

applied for

Facility costs yen yen yen

Survey and design costs yen yen yen

Other costs yen

Total yen yen yen

11

7. Basic Calculation of the Above Amount

Costs to be subsidized × subsidy rate = subsidy amount applied for

Note:

1) “Costs required for the subsidized project” represents expenses necessary to carry out the subsidized

project. Please indicate the amount after deduction of the amount equivalent to consumption tax and

local consumption tax.

2) Please indicate the amount of “costs required for the subsidized project” that are covered by the

subsidy program after deduction of the amount equivalent to consumption tax and local consumption

tax in the “costs to be subsidized” column. As costs for constructing buildings and purchasing land

are included in “costs required for the subsidized project” but do not qualify for this program, these

costs are not “costs to be subsidized.”

3) “Subsidy amount applied for” represents the amount of “costs to be subsidized” for which the

applicant requests the subsidy. The maximum amount is the amount of “costs to be subsidized”

multiplied by the subsidy rate, with fractions less than one yen rounded down.

12

(Form 2)

Address

Name (Name of Corporation and Name of Representative)

Summary of Subsidized Project

1. Subsidized project implementation plans

(1) Objective and details of the subsidized project

(a)Objective and details

(b) Implementation site (address and name of place of business)

* Also, indicate the name of the industrial complex if the site is located in a complex run by the

Organization for Small & Medium Enterprises and Regional Innovation, Japan, or municipal

organizations.

(c)Ownership of implementation site premises and building(s)

*Quote the due date of occupancy contract if the owner is a different party.

*Indicate if it is a newly-acquired site or new building.

*Quote the date of acquiring the site or constructing the building if the owner is the applicant.

(d) Gross floor area (the portion used for implementation of the subsidized project)

(2) Implementation period of subsidized project

(a) Starting date of subsidized project (scheduled) DD/MM/YYYY

(b) Completion date of subsidized project (scheduled) DD/MM/YYYY

(3) Attachments

(a) A sketch of the area adjacent to the implementation site of the subsidized project

(b) Facility layout plan

2. Features of the subsidized investment project

(1) Name of the new product or component manufactured on the First Production Line of the applicant

*Please refer to 1 of Attachment 1, “Facility Investment.”

(2) Technological innovation related to the new product or component manufactured on the First

Production Line

*Please summarize 2 of Attachment 3, “Technological Innovation.”

(3) Expected amount on CO2 reduction through the spread of the new product or component

*Please enter in Attachment 5 (CO2-Reduction Effect.) , Section 2. (CO2-reduction effects, t-CO2)

(4) Attachments

Materials supporting (1) to (3) above are attached (Attachment 1-9).

13

3. Subsidized project income and expenditure budget

(1) Income

(Unit: yen)

Item Amounts

Personal funds

Bond issuance or debt payable

Other

Subsidy

Total

(2) Expenditure

(i) Summary Table

(Unit: yen)

Classification

of costs

Costs required for

subsidized project

Costs to be

subsidized

Classification of cost burden

Subsidized enterprise Subsidy amount

applied for

Facility costs

Survey and

design costs

Subtotal

Other costs

Total

14

(ii) Breakdown of costs (input the breakdown per cost category)

(a) Facility costs (Unit: yen)

Category Costs required for

subsidized project

Costs to be

subsidized

Subsidy amount

applied for Remarks

Subtotal

Total

(b) Survey and design costs (Unit: yen)

Category Costs required for

subsidized project

Costs to be

subsidized

Subsidy amount

applied for Remarks

Subtotal

Total

(c) Other costs (Unit: yen)

Category Other costs required for

subsidized project Remarks

Total

Notes:

*Specify the following formula in your application when reducing the amount of purchase tax

credit such as consumption tax.

Required subsidy amount - purchase tax credit such as consumption tax = subsidy amount

*Please deduce the amount corresponding to consumption taxes for calculating “Costs to be

subsidized.”

15

(Attachment 1)

Facility Investment

1. Name of the product or component to be manufactured on the First Production Line installed in this

subsidized investment project

2. The technical field that was identified in “Cool Earth Innovative Energy Technology Program”

(METI, March 2008), “New Innovative Environmental Energy Technology Program” (Council for

Science and Technology Policy, May 2008), or “Industry for Solving of Environmental and Energy

Issues” in“2010 Industrial Structure Vision” (METI, June 2010), and that relates to the

manufacturing of the product or component above

3. Facility investment plan for the First Production Line included in this subsidy application

(Please list all new facilities installed at the same production site with the First Production Line,

including ones that have never been involved in any subsidy application)

Name of

facility*

Unit Price

(thousand yen) Quantity

Amount

(thousand yen)

Product or component

to be manufactured

(including usage)

Location

(city/town/village

of production site)

Facilities

relating to

this subsidy

application

(1) xxx Plant,

(xxx City,

xxx Prefecture)

(2)

Subtotal

Facilities not

included in

subsidy

application

(3)

(4)

Subtotal

Total

*Please put “(new)” at the end of the names of newly installed facilities.

16

(Attachment 2)

Status of Business Management

1. Business environment

(1) Status of cash and deposit balance, compared to the subsidized investment amount, must not be

excessive (for listed companies only)

(i) Cash and deposit balance of the recent fiscal year (deduce short-term borrowings from cash and

deposit balance on the book closing date)

(ii) Monthly average sales (sales revenue, divided by 12)

(iii) Average receivable turnover months (SMEs: 4.4, Medium-sized enterprises: 3.4, other types of

companies: 2.4)

(iv) Costs to be subsidized

(Unit: million yen)

Type of entity (select either one)*1 Listed company / Unlisted company

(i) (1) Cash and deposits

(2) Short-term borrowings

(1)-(2)

(ii) (3) Annual sales

(3)/12

(iii) Average receivable turnover months

(iv) Cost to be subsidized

(ii) x (iii)+(iv)

(v) Status of cash and deposit balance *2

Excessive / Not excessive

*1) If the applicant is an unlisted, please select “Unlisted company” and need not fill out (i)-(v).

*2) For (v), if (i) < {(ii) × (iii) + (iv)}, please select “Not excessive.”

(2) Business profitability (for all type of entities)

Earnings of the recent two years from the applicant’s financial results (unconsolidated)

(Unit: million yen)

FYxxxx FYxxxx Average

Operating profit

Ordinary profit

Net income

(3) Degree of burden of the investment project (for all type of entities)

(Please fill in the chart below to decide degree of burden of the investment costs)

(Unit: million yen)

(A) (B) (C) Cost burden*

Evaluation Process Smallest average of earnings

from chart (2)

Costs to be subsidized (B)/5 (A)< (C)

Result Heavy / Not heavy

*Please select “Heavy” if (A) < (C).

17

(Attachment 3)

Technological Innovation

1. Summary and major usage of the product or component to be subsidized

*Please be sure to attach materials such as photograph that enable the product or component to be

easily visualized.

*Indicate reasons why it is considered that the applicant’s product is highly reliable and that the

market for the product is secured in terms of the product’s performance, safety, and innovativeness,

and.

2. The product’s innovativeness in technology, which can be conspicuous when it is compared to the

existing products or components with the same function (e.g. difference of performances between

the new LED chip and conventional ones)

(1) Superiority of the new product in performance

(2) Superiority of the new product in reduction of production costs

(3) Technical innovation in other features of the product (A=Good, B=Mixed, C=Not good)

Items New product to be subsidized Conventional products

(e.g.) Environmental

burden

A C

(use of harmful substance of xxxx)

(e.g.) Product safety A

(compliance with international standards)

B

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3. Commercial acceptability (sales plan)

Commercial acceptability of the new product or component (examples)

<Name of existing product or component：xxxxxxxxx> (Unit: million yen)

FY 2012 2013 2014 2015 2016 Total

Existing trade partners

xxx Manufacturing (Ltd.)

xxx Engineering (Ltd.)

Prospective clients

currently in negotiations with

xxx Manufacturing (Ltd.)

xxx Engineering (Ltd.)

Note: Please identify the name of the client company.

<Name of the new product or component：xxxxxxxxx> (Unit: million yen)

FY 2012 2013 2014 2015 2016 Total

Existing clients

xxx Manufacturing (Ltd.)

xxx Engineering (Ltd.)

Prospective clients currently

in negotiations with

xxx Manufacturing (Ltd.)

xxx Engineering (Ltd.)

Note: Please identify the name of the client companies.

19

(Attachment 4)

The First Production Line

1. Production facilities associated with the technological innovation

Name of facility Function in the manufacturing

process

Amount

(unit price)

Location

(city/town/village of production site)

2. Relationship between the facilities and technological innovation

Ex. With conventional facilities miniaturization of components to the size of xxxx microns is difficult

because of xxxx. Xxxxx to be installed in this subsidized project is superior in terms of xxxxx and

will enable components to be miniaturized to the size of xxxx microns, which means that the new

facility will bring technological innovation, enhancing performance of the components in terms of

xxxxx.

3. Is this the first time to install these facilities for the purpose of manufacturing the subsidized

product or component? (Yes / No)

20

(Attachment 5)

CO2 Reduction Effects

*Please fill out this form after completing Attachment 5-1.

1. Name of the new product or component manufactured on the First Production Line (e.g. lithium-ion

battery separator)

The main final product using the product or component manufactured in the above process (e.g.

electric vehicle made by XX Company)

2. CO2-reduction effects

Calculation formula:

CO2-reduction effect = amount of CO2 reduction (A) × number of units produced (B) × contribution (C)

Amount of CO2 (kg-CO2) reduction (A) kg-CO2

Number of units produced on the First Production Line if operated till FY2017

(total) (B) thousand units

Contribution (C) (Note 1) %

CO2-reduction effect (till FY 2017) (t-CO2) (total) (Note 2) t-CO2

3. Production capacity

First Production Line FY

2013

FY

2014

FY

2015

FY

2016

FY

2017

total

Number of units produced of the new product

(B) (thousand units)

Amount of CO2 expected to be reduced (t- CO2)

(A x B x C)

Note:

1) Please indicate the amount of contribution in money. If the price of the final product is

unavailable, it should be calculated on the basis of the price of similar products that are currently

on the market. State other measures of contribution when the contribution is represented by

measures other than money.

2) The amount of CO2 expected to be reduced from commercial production of the subsidized new

product or component (except the reduction caused by improvement of production process). In

order to clarify the idea, please submit additional form to show its calculation process, and

identify and attach copies of the referred data. Objec t ive dat a must be used in t he

ca lculat ion. Figures must be expressed in kg-CO2 or t-CO2.

21

(Attachment 5-1)

Instructions for calculating “CO2-Reduction Effects”

1. CO2-reduction effects caused by the subsidized product or component

(1) CO2-reduction effects

(2) Amount of CO2 reduction per product

[Energy consumption of the old product]

Please indicate the amount of electricity or gasoline or any other consumption energy consumed if

the old product is used, as CO2 emissions.

* Do not combine electricity and gasoline consumption even if both of them can be estimated.

Name of the old product: ( ) *Limited to products released in and after FY2009

Consumption energy

Consumed

amount

(D1)

Unit

Estimated use per year

Time or distance

(D2)

*1CO2 emission

factors

(D3)

CO2

emissions

(D4)

Unit

Electricity

consumption KWh 0.378

kg-CO2

per year

Gasoline

consumption *2

liter/km 2.322 kg-CO2

per year

Other ( )

CO2 emissions of the old product = (D1) x (D2) x (D3) = (D4)

*1 CO2 emission factors have been set by the Ministry of Environment

*2 Indicate values by reference to JC08 Mode, a method for calculating vehicle mileage set by the Ministry

of Land, Infrastructure and Transport, statistics for automobile transport released by the Ministry (for

mileage per year), and other data.

[Energy consumption of the final product]

Please indicate the amount of electricity or gasoline or any other consumption energy consumed as

CO2 emissions if the final product is used, and calculate CO2 reduction.

Main final product: ( )

Consumption energy

Consumed

amount

(E1)

Unit

Estimated use per year

Time or distance

(E2)

*1CO2 emission

factors

(E3)

CO2

emissions

(E4)

Unit

Electricity

consumption KWh 0.378

kg-CO2

per year

Gasoline

consumption *2

liter/km 2.322 kg-CO2

per year

Other( )

CO2 emissions of the new product = (E1) × (E2) × (E3) = (E4)

CO2 reduction (D4) – (E4) = (A) kg-CO2 per year

22

(3) Contribution: percentage of the product or component produced on the First Production Line in the

final product

Item

Name of the product or component

produced on the First Production Line

( )

Final product *3

(EV made by XX

Company)

Contribution

(C)

Amount (Yen) (Yen) %

*4 Other

( ) ( ) ( ) %

*3 If a product similar to the final product is currently on the market, the price of the similar product is

used for reference.

*4 State other measures of contribution when the contribution is represented by measures other than

money.

23

(Reference)

Example for calculating “CO2-Reduction Effects”

1. CO2-reduction effects caused by the subsidized product or component

(1) CO2-reduction effects

If a produced lithium-ion battery is converted into an electric vehicle, the CO2-reduction effects are

shown for the electric vehicle in comparison with a gasoline car.

(2) Amount of CO2 reduction per product

[Energy consumption of the old product]

Please indicate the amount of electricity or gasoline or any other consumption energy consumed as

CO2 emissions if the old product is used.

* Do not combine electricity and gasoline consumption even if both of them can be estimated.

Name of the old product: (Gasoline vehicle made by XX Company)

*Limited to products released in and after 2009

Consumption energy

Consumed

amount

(D1)

Unit

Estimated use per year

Time or distance

(D2)

*1CO2 emission

factors

(D3)

CO2

emissions

(D4)

Unit

Electricity

consumption KWh 0.378

kg-CO2

per year

Gasoline

consumption *2

*** liter/km *** 2.322 *** kg-CO2

per year

Other( )

CO2 emissions of the old product = (D1) x (D2) x (D3) = (D4)

*1 CO2-emission factors have been set by the Ministry of Environment.

*2 Indicate values by reference to JC08 Mode, a method for calculating vehicle mileage set by the Ministry

of Land, Infrastructure and Transport, statistics for automobile transport released by the ministry (for

mileage per year), and other data.

[Energy consumption of the final product]

Please indicate the amount of electricity or gasoline or any other consumption energy consumed if

the final product is used, as CO2 emissions, and calculate CO2 reduction.

Main final product: (Electric vehicle made by XXX Company)

Consumption energy

Consumed

amount

(E1)

Unit

Estimated use per year

Time or distance

(E2)

*1CO2 emission

factors

(E3)

CO2

emissions

(E4)

Unit

Electricity

consumption KWh 0.378

kg-CO2

per year

Gasoline

consumption *2

liter/km 2.322 kg-CO2

per year

Other( )

CO2 emissions of the new product = (E1) x (E2) x (E3) = (E4)

CO2 reduction (D4) – (E4) = (A) *** kg-CO2 per year

24

(3) Contribution: percentage of the product or component produced on the First Production Line in the

final product

Item

Name of a product or component

produced on the First Production Line

(Lithium-ion battery separator)

Final product *3

(EV made by XX Company)

Contribution

(C)

Amount (Yen) (Yen) %

*4 Other

( ) ( ) ( ) %

*3 If a product similar to the final product is currently on the market, the price of the similar product is

used for reference.

*4 State other measures of contribution when the contribution is represented by measures other than

money.

25

(Attachment 6)

Spillover Effects on Regional Economy

1. The number of people expected to be hired for the subsidized project (related only to the First

Production Line):

xxxx people will be hired, before the end of the fiscal year following the one in which the

subsidized project is completed,

*Please specify the prospective number of people to be newly hired before the end of the next fiscal

year. The status of job creation could be reviewed in or after the next fiscal year after the project is

closed.

2. Spillover effects on regional economies and industries

Please specify spillover effects on regional economies and industries such as the establishment of

collaborative relationships with local companies through the implementation of the subsidized

project.

3. Spillover effects on SMEs

Planned purchase from SMEs related to this subsidized project:

(Expenses to be subsidized)

Goods/services planned to

be purchased from SMEs

Name of vendor Location Amount

(million yen)

Total

(Expenses not to be subsidized)

Goods/services planned to

be purchased from SMEs

Name of vendor Location Amount

(million yen)

Total

26

(Attachment 7)

Concerns for Overseas Relocation

1. Possibility of overseas relocation of the project if this subsidy is not granted

(1) Possibility of considering overseas relocation of the project if this subsidy is not granted

* If overseas relocation may be considered, provide specific details of the target regions, planned

scale of relocation, allocation of roles between the overseas plant and existing domestic one, etc.

(2) Concerns if the project is relocated overseas

* Please indicate how the overseas relocation would impact your product development and

technological strategy, etc., in comparison with the implementation of the project at a domestic

site with the granted subsidy.

2. Actual conditions of approaches concerning overseas relocation

(1) Has an approach from overseas (governmental agency or company) been received regarding this

project?

* If the answer is “yes”, provide specific details about the party that approached you and under

what circumstances.

(2) Assistance policies implemented by overseas governmental agencies to attract similar projects.

(Please specify such policies that you know of.)

A. Is there any overseas subsidy program for your project to establish production facilities?

B. Summary of the subsidy program (answer if the answer to 1. above is “yes”):

(i) Name of program:

(ii) Country:

(iii) Content of the program (including budget amount, the products & components subsidized,

and whether it discriminates between domestic and foreign projects, etc.)

27

(Attachment 8)

Clustering Effect

1. Is the project connected to regional economic development programs and regional revitalization

projects run by the government or municipal organizations?

Examples of government-run regional revitalization policy:

Projects connected to promoting location of companies as a part of programs relating to regional

revitalization policy framework established by the Cabinet’s “Regional Revitalization Policy

Promotion Investigation Group”, such as the Regional Redevelopment Program (Cabinet Office);

Basic Plan based on the Act on the Promotion of Establishment of New Business Facilities (METI);

Industrial Cluster Project (METI); Self-support Settlement Region Framework (Ministry of Internal

Affairs and Communications (MIC)); Vigorous Regional Support Program (MIC); Promotion of

Regional Employment Creation (Ministry of Health, Labor and Welfare); General Support System

for Regional Autonomy and Revitalization (Ministry of Land, Infrastructure, Transport and

Tourism).

* If there is any connection, enter the name of the policy and describe its position in the subsidized

project plan, and attach a copy of the relevant part of the document above.

* If your project has received any assistance under a policy run by the government or municipal

organizations, even if there is no direct connection with this subsidy program, indicate the name of

the policy (limited to assistance provided within the last three years).

2. Utilization of special characteristics of the region

Is this project planned to contribute to further development of the cluster area it belongs to,

corresponding to the unique features of the region?

28

*Afflicted areas: regions specified in Reference 2

(Attachment 9)

Contribution to recovery from the Great East Japan Earthquake

*Among what are stated in Attachment 6, please select which could contribute to the rehabilitation

of the areas damaged by the Great East Japan Earthquake (“the Earthquake”) and answer 1 & 2

below.

1. The number of people expected to be hired for the subsidized project (related only to the First

Production Line) in the affected areas:

xxxx people will be hired, before the end of the next fiscal year after the project is closed.

* Please specify the prospective number of people to be newly hired before the end of the next fiscal

year. The status of job creation could be reviewed in and after the next fiscal year after the project

is closed.

2. Spillover effects on SMEs in the affected areas

Planned purchase from SMEs located in the affected areas, related to this subsidized project:

(Expenses to be subsidized)

Planned purchase from SMEs Name of vendor Location Amount

(million yen)

Total

(Expenses not to be subsidized)

Planned purchase from SMEs Name of vendor Location Amount

(million yen)

Total

3. Other contributions to be made relating to this subsidized project for the recovery from the

Earthquake.

29

Note:

1) If the project is implemented in an industrial concentration zone specified in the Special

Reconstruction Zone Act, please state so.

2) Specify areas (name of prefectures and municipalities) to which spillover effects are expected to

spread.

3) Indicate any investments in the afflicted areas.

4) Explain spillover effects on the afflicted areas through supply chains.

(Specify the direct and indirect spillover effects on the afflicted areas including expected effects.)

- The product or component produced under the subsidized project uses parts and materials

manufactured by upstream companies in the afflicted areas (not limited to direct transactions).

- The product or component or material produced under the subsidized project is supplied to

downstream companies in the afflicted areas.

- Downstream companies to which the product or component or material produced under the

subsidized project are delivered supply products or components or materials to downstream

companies in the afflicted areas.

* Specify quantitative data, if any.

30

(Form 3)

Corporate Profile

Name of company

Title of representative

Name of representative

Head office location

Date of establishment Settling month

Capital (thousand yen) Number of employees

Company size (select one) SME / Medium-sized / Others

Cash and deposit balance Not excessive / Excessive / Not screened See attachment 2 (1)

Cost burden Heavy / Not heavy See attachment 2 (3)

Activities

Principal stakeholders

(Investment ratio)

Company A (60%) [Large enterprise]

Company B (30%) [Small to medium enterprise]

Company C (1%) [Large enterprise]

Remarks

Content of Subsidized Investment Project

New product or component Provide the information described in Attachment 1, Section1 on page 15.

Green technology field Provide the information described in Attachment 1, Section2 on page 15.

Project implementation site

Person in charge

Position and name

Person in charge

Contact information

Tel: Fax:

E-mail:

Amount

(thousand yen)

Total project costs Costs to be subsidized Subsidy

amount

Rate of

subsidy

Other information

Newly-acquired site

(Newly-acquired = “Yes”)

Newly established building

(Newly-established=“Yes”)

Use of Lease

(Use=”Yes”)

Yes or No Yes or No Yes or No

31

(Form 4)

Project Implementation Chart

Contents:

- Create a structure chart that clearly describes the implementation structure of the project.

- Enter the name and position of the responsible personnel and division of roles.

- Among the people listed in the chart, describe the work record, specialty or area of skill of the

principal responsible personnel.

Business implementation structure and division of roles

*Provide specific details by displaying the implementation structure chart of the project, including the

items seen below:

* Also indicate the position title in the head office, if any.

e.g. Manager of XX Factory (Director, Executive Managing Officer)

- Name

- Position

- Position in relation to this project

- Role in relation to this project, etc.

Leader

-Name

-Position

-Role

Vice Leader

-Name

-Position

-Role

Member

-Name

-Position

-Role

Member

-Name

-Position

-Role

Representative of this project

Name

Position*

32

<Reference>

Point of Contact and Inquiries

Bureaus of Economy, Trade and Industry

(Responsible Department/Office)

Location / Tel / Fax / URL

Prefecture with jurisdiction

over the project

METI

Regional Economic and Industrial Policy

Group

Industrial Facilities Division

TEL:+81-3-3501-1677 FAX:+81-3-3501-6270

http://www.meti.go.jp/english/index.html

*Please submit application

materials to the Regional

Bureau of Economy, Trade and

Industry presiding over the

place of business of the

project.

Hokkaido Bureau of Economy, Trade and

Industry

Industries Department

Industrial Location Division

Sapporo Government Office Bldg. No. 1, North 8, West 2,

Kita-ku, Sapporo 060-0808

TEL:+81-11-736-9625 FAX:+81-11-709-1798

http://www.hkd.meti.go.jp/index_e.htm

Hokkaido

Tohoku Bureau of Economy, Trade and

Industry

Economic Policy Department

Industrial Support Division

Sendai Government Office Bldg. 3-3-1, Honcho, Aoba-ku,

Sendai 980-8403

TEL:+81-22-221-4882 FAX:+81-22-223-2658

http://www.tohoku.meti.go.jp/s_kokusai/index_kokusai2.html

Aomori, Iwate, Miyagi, Akita,

Yamagata, Fukushima

Kanto Bureau of Economy, Trade and

Industry

Economic Policy Department

Industrial Location Office

Saitama-shintoshin Joint Government Building No.1, 1-1

Shintoshin, Chuo-ku, Saitama 330-9715

TEL:+81-48-600-0269 FAX:+81-48-601-1287

http://www.kanto.meti.go.jp/data/english/index.html

Ibaraki, Tochigi, Gunma,

Saitama, Chiba, Tokyo,

Kanagawa, Niigata,

Yamanashi, Nagano, Shizuoka

Chubu Bureau of Economy, Trade and

Industry

Economic Policy Department

Regional Development Division

2-5-2 Sannomaru, Naka-ku, Nagoya 460-8510

TEL:+81-52-951-2716 FAX:+81-52-961-7698

http://www.chubu.meti.go.jp/english/index.htm

Toyama, Ishikawa, Gifu, Aichi,

Mie

Kansai Bureau of Economy, Trade and

Industry

Economic Policy Department

Regional Development Office

No.1 Joint Government Building, 1-5-44, Ohtemae, Chuo-ku,

Osaka 540-8535

TEL:+81-6-6966-6012 FAX:+81-6-6966-6077

http://www.kansai.meti.go.jp/english/index.html

Fukui, Shiga, Kyoto, Osaka,

Hyogo, Nara, Wakayama

Chugoku Bureau of Economy, Trade and

Industry

Industries Department

Industrial Development Division

6-30 Kamihatchobori, Naka-ku, Hiroshima 730-8531

TEL:+81-82-224-5638 FAX:+81-82-224-5642

http://www.chugoku.meti.go.jp/english-hp/index.html

Tottori, Shimane, Okayama,

Hiroshima, Yamaguchi

Shikoku Bureau of Economy, Trade and

Industry

Industries Department

Industrial Development Division

Sunport National Government Bldg, 3-33 Sunport Takamatsu

760-8512

TEL:+81-87-811-8523 FAX:+81-87-811-8556

http://www.shikoku.meti.go.jp/old/english/top.html

Tokushima, Kagawa, Ehime,

Kochi

Kyushu Bureau of Economy, Trade and

Industry

Industries Department

Industrial Development Division

2-11-1 Hakataeki-higashi, Hakata-ku, Fukuoka 812-8546

TEL:+81-92-482-5435 FAX:+81-92-482-5947

http://www.kyushu.meti.go.jp

Fukuoka, Saga, Nagasaki,

Kumamoto, Oita, Miyazaki,

Kagoshima

Okinawa General Bureau

Economy, Trade and Industry Department

Development Planning and Promotion

Division

2-1-1 Omoromachi, Naha, Okinawa 900-8530

TEL:+81-98-866-1727 FAX:+81-98-860-1375

http://ogb.go.jp/move/

Okinawa