Who we are and What we do. Corporate Profile of Company Name: DISCO Inc. Established: October 1, 1973 Areas of Business Our Strength Over 40-years of

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1 International Graduate Recruitment in Japan Changes in Demand: Perspectives of Global Companies DISCO Inc. Global Business Development Isao Ogake

2 Who we are and What we do. Corporate Profile of Company Name: DISCO Inc. Established: October 1, 1973 Areas of Business Our Strength Over 40-years of specialty on new graduates HR market in Japan.

3 JP Companies Expansion to ASEAN Countries Japanese Corporations continued to expand in ASEAN countries. Graduates with experience in the region are highly in demand, especially bilinguals 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 - Number of Japanese Subsidiary by Region 5,462 5,565 5,878 4,178 4,275 4,442 7,700 7,807 5,410 5, Source: Ministry of Economy, Trade and Industry Survey of Overseas Business Activities CHINA ASEAN 10 US EU UK

4 Japanese Corporate Needs for Global Workforce Plans to hire of Foreign Student in Japan % % 2016 (planned) 57.1% Plans to hire Foreign Student by Company Size Less than 300 employees 50.6% employees 51.5% 1000 employees or more 71.8% Trend to increase recruitment for Foreign Students Large companies with more than 1,000 employees are increasingly looking to Foreign Student DISCO Inc., Survey of 609 companies, November 2015

5 Employed Foreign Students by Region of Origin 100% Expansion to emerging markets created a high demand for Foreign Students from South East Asian countries compared to other region. 80% 78% 76% 60% 40% 20% 0% 59% China 25% Southeast Asia 25% 19% DISCO Inc., Survey of 609 companies, November % 5% 3% 2015 hire Future hire 24% South Korea Europe North America

6 Reasons to Hire Foreigners Companies are looking for foreign students with international awareness or language skill but also for to secure top graduates. Secure talented candidate Increase international awareness in the company Deal with overseas clients Invigorate company Deal with overseas subsidiaries Add diversity to the workplace Supplement local graduate recruitment Gather skills not available in domestic talent pool Others 3% 9% 17% 46% 46% 37% 34% 33% 68% DISCO Inc., Survey of 609 companies, November % 20% 40% 60% 80%

7 Top 5 Work Position of Foreign Students Manufacturing Companies Non-Manufacturing Companies Research & Development Domestic Sales Production & Quality Control International Sales IT & Software Administrative Staff Sales & Distribution International Sales Administrative Staff Marketing & Planning DISCO Inc., Survey of 609 companies, November 2015 Foreigners have been working positions in roles that requires advanced skills such as research & development and software development.

8 Skills Expected from Foreign Students On top of academic skills, Japanese companies are expecting foreign students to work in a team, thus expecting them to have a good communication skills. Communications Skills 55% Japanese Language Skill 46% Enthusiastic/ Proactive 27% Cultural sensitivity 23% Academic Skill 17% DISCO Inc., Survey of 609 companies, November % 20% 40% 60%

9 Expected Japanese Language Level Advanced Business Level Japanese are expected in Japanese business environment, and have been the last barrier for Foreign student to enter the Japanese company. Native level 32% Business Advanced 47% Business Intermediate 15% Business Basic 5% Everyday Conversation 1% 0% 10% 20% 30% 40% 50% DISCO Inc., Survey of 609 companies, November 2015

10 Summary of Our Findings Japanese companies, especially larger ones (more than 1,000 employees) are actively looking to hire Foreign Students. Students from South East Asian countries are especially in high demand. Companies are looking for top talents, on top of candidate s language skill and multi-cultural awareness. Japanese language are the last barrier for Foreign Students to enter Japanese company.

11 Suggestions to Universities Increase student exposure to Japanese language during their study or exchange in Japanese Universities. Make them understand the way of Japanese recruitment culture especially new graduate. Cooperate with companies to give them opportunities for long term internship to help them understand JP corporate culture.

12 Suggestions to Japanese Companies Not consider Japanese language skill as high as today when they are entering to a company. Keep training them for Japanese language and Culture to improve the stability of the work force. Making clear career paths to motivate them and showing clear goal to achieve. Cooperate with Univ. to give them opportunities for long term internship to help them understand corporate culture.