1. The ratio of overseas affiliates that are in the ASEAN 10 economies has continued to increase.

The total number of overseas affiliates as of the end of FY2020 was 25,703. Of these, 11,070 were in manufacturing industries and 14,633 were in non-manufacturing industries.
Looking at the situation by region, the ratios in Europe, North America, and Asia decreased. In Asia, the ratio in the ASEAN 10 economies increased for the 10th consecutive year, while the ratio in China decreased.

2. The number of employees in overseas affiliates decreased.

The total number of employees in overseas affiliates as of the end of FY2020 was 5.63 million, a decrease of 0.2% from the previous year. Looking at the numbers by type of industry, 4.19 million were employed in manufacturing industries, down 0.2% from the previous year. The number employed in non-manufacturing industries was also down 0.2% from the previous year, standing at 1.43 million. Looking at the situation by region, the figures for Europe, Asia, and North America all decreased. In Asia, the figures for the ASEAN 10 economies and China decreased, while those for the other Asian countries increased.

3. Overseas affiliates' total sales, ordinary profits, and current net profits all decreased.

The total sales of overseas affiliates in FY2020 were 240.9 trillion yen, down 8.4% from the previous year. Looking at the sales by type of industry, industries such as wholesale trade and transport machinery showed a decrease. Looking at the situation by region, the figures for North America, Asia, and Europe decreased. Overseas affiliates' total ordinary profits were 9.9 trillion yen, down 8.9% from the previous year. Their total current net profits were 7.0 trillion yen, down 11.7% from the previous year.

4. The ratios of overseas production by overseas affiliates in the manufacturing industries rose slightly.

Compared to total production by all domestic companies in the manufacturing industries in FY2020, the ratio of overseas production by overseas affiliates was 23.6%, up 0.2% from the previous year. Looking at the ratios by type of industry, increases were seen in ones such as transport machinery (44.4%) and information and communications electronic equipment (30.3%).

5. The total expenses for research and development by overseas affiliates in the manufacturing industries increased, while their capital investment decreased.

The total expenses for research and development spent by overseas affiliates in the manufacturing industries in FY2020 were 710.5 billion yen, up 1.5% from the previous year. Their total capital investment was 3.2 trillion yen, down 25.0% from the previous year.

Outline of the survey

(1) Purpose

The survey aims to clarify the current situation of Japanese companies' overseas business activities, thereby providing basic data toward the planning, preparation, and implementation of a wide variety of measures.

(2) Targets of the survey

The survey targeted Japanese companies (hereinafter referred to as the "headquarters") with overseas affiliates as of the end of March 2021, excluding those in the finance, insurance, and real estate industries. "Overseas affiliates" in the survey is a collective term for the following: overseas affiliates, meaning overseas corporations in which a Japanese company has been investing at a ratio of over 10%; and second-tier affiliates, meaning overseas corporations in which an overseas affiliate with a Japanese capital contribution at a ratio of over 50% has been investing at a ratio of over 50%.

(3) How the survey is conducted

METI conducts the survey via written questionnaire sheets, of which it distributes two types (one for the headquarters and one for the overseas affiliates) to the headquarters. The headquarters then send the completed sheets back to METI.

(4) Timing of performance data clarified by the survey

METI conducted the survey on July 1, 2021, targeting the responding companies’ performance as of the following times: [i] the end of March 2021, or the closest preceding closing date of financial accounts in FY2020; and [ii] the end of FY2020.

(5) Data on collection of questionnaire sheets

Collection ratio: 75.2%
Number of target companies (in operation): Headquarters: 7,281; overseas affiliates: 25,703

(6) Notes for using the data

When aggregating the data on the survey items related to the overseas affiliates, in principle, METI has adopted the Japanese yen as the currency unit, and converted the local currencies to yen using the average exchange rate (period average) in the International Financial Statistics (IFS) released by the International Monetary Fund (IMF). Please note that depending on the survey year, fluctuations in the yen's value against the local currency where a surveyed overseas affiliate operates will be seen when comparing the exchange rates between the two currencies in the current and previous years. For example, the JPY-USD exchange rate was 106.77 yen/dollar in the 2020 survey, with the yen up 2.1% from the previous year. Meanwhile, the JPY-EUR rate was 121.33 yen/euro, with the yen down 0.9%.

Division in Charge

Enterprise Statistics Office, Research and Statistics Department, Minister's Secretariat