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  5. Results of Quarterly Survey of Overseas Subsidiaries Compiled (October-December 2019)

Results of Quarterly Survey of Overseas Subsidiaries Compiled (October-December 2019)

Japanese

March 25, 2020

Others

The Ministry of Economy, Trade and Industry (METI) has been conducting a Survey of Overseas Subsidiaries on a quarterly basis, aiming to ascertain the business development and conditions of Japanese companies operating overseas, and releasing the results. METI hereby announces that it has compiled the survey results for the period of October-December 2019.

The total sales of overseas subsidiaries of Japanese companies from October to December 2019 (in US dollar values) have declined from the previous year, showing a decrease for four consecutive quarters.

1. Summary of the results

(1) Sales

The total sales of overseas subsidiaries declined by 3.4% from the previous year, marking a fourth consecutive quarterly decrease.

Looking at sales of overseas subsidiaries by region (North America, Asia and Europe), those in Asia, the region with the highest composition ratio of overseas subsidiaries at 52.3%, declined by 2.9% from the previous year, marking a fourth consecutive quarterly decrease. In particular, sales in the transportation equipment industry decreased.

Sales in North America (composition ratio: 28.8%) declined by 4.4% from the previous year, marking the first decrease in two quarters, and in particular, sales in the transportation equipment industry decreased. Sales in Europe (composition ratio: 11.8%) also declined by 2.2% from the previous year, marking the sixth consecutive quarterly decrease.

(2) Amount of capital investment

The total amount of capital investment by overseas subsidiaries declined by 6.3% from the previous year, representing the first decrease in two quarters.

Looking at capital investment by region, investment in Asia, the region with the highest composition ratio of overseas subsidiaries at 52.6%, declined by 13.0%, the first decrease in nine quarters. In particular, capital investment in the transportation equipment industry declined.

Capital investment in North America (composition ratio: 29.5%) increased by 11.4% from the previous year, showing a second consecutive increase, while that in Europe (composition ratio: 12.4%) declined by 0.7% from the previous year, the first decrease in two quarters.

(3) Number of employees

The total number of employees in overseas subsidiaries declined by 2.0% from the previous year, marking a third consecutive quarterly decrease.

Looking at the number of employees by region, in Asia, the region with the highest composition ratio of overseas subsidiaries at 68.5%, the number decreased by 3.0%, its third consecutive quarterly decrease. In particular, employees in the electrical machinery industry decreased.

The number of employees in North America (composition ratio: 13.9%) increased by 0.1% from the previous year, marking the 34th consecutive quarterly increase, while that in Europe (composition ratio: 10.0%) also increased by 0.2% from the previous year, marking the first increase in two quarters.

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