Corporate profileErnst & Young Advisory Co., Ltd.

Leveraging Change Toward Better Performance

From geopolitical events to regulatory reform, from new technologies to emerging markets; the incentives driving businesses to transform are changing at a dizzying pace. And as the world evolves, so do the challenges facing today's businesses.

These changes can trigger a domino effect that spreads instantly to a wide range of areas.

Our professionals at EY Advisory provide clients with quantitative solutions based on extensive industry knowledge and experience. We help clients navigate unpredictable and rapidly changing business environments to achieve sustainable reform.

Together, we can transform your business into a success.

Our Position & Focus

The issues facing today's businesses stem from a complex array of factors, and it's difficult to tackle them with just one type of knowledge or tool. Our advisory services provide clients with comprehensive, real-world strategies that help them improve performance organization-wide.

Businessperformance

Enterprisesystems integrationand outsourcing

Enterprisestrategy

Our focus

EY Global

EY Japan

Assurance Advisory Tax TAS

Ernst & YoungShinNihon LLC

EY JapanAdvisory

Ernst & YoungTax Co.

Ernst & YoungTransaction

Advisory ServicesCo., Ltd.

The Position of EY Advisory

Helping businesses perform better

EY is organized into four core business lines: Assurance, Advisory, Tax and TAS. We provide consistent, high quality advisory services globally using methods and tools developed by the EY network.

Our services in Japan are tailored to the needs of our clients and the local market through the knowledge and experience of our professionals in various fields.

The Services of EY Advisory

8 Domains

15 Sectors

We help clients in every business sector and industry enhance and improve their business processes and functions through our eight-domain approach.

Our team of professionals from 15 business sectors addresses business challenges that require deep technical expertise.

• Automotive

• Chemical

• Consumer Products

• Financial Service

• Government & Public

• Healthcare

• Life Sciences

• Media & Entertainment

• Metal & Mining

• Oil & Gas

• Power & Utilities

• Real Estate

• Retail

• Technology

• Telecom

• Finance

• Supply Chain & Operations

• Customer

• People Advisory Service

• Strategy

• IT Advisory

• Digital

• Program Management

Our Services

8 Domains

Finance

Customer

People Advisory Service

Program Management

Strategy

IT Advisory

Digital

Supply Chain &

Operations

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Technology Telecom

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Our Domains

Finance

Supply Chain & Operations

Customer

People Advisory Service

Strategy

IT Advisory

Digital

Program Management

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Shareholders, markets, CEOs, employees: what role does each expect the CFO to play? Finance leader. CEO's right-hand person. Guardian of corporate value. Reformer Devil's advocate.

The better the question, The better the answer,The better the world works.

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DomainsFinanceThe competitive environment surrounding companies is constantly changing as the pace of globalization accelerates, cost pressures increase and business needs become ever more diverse. CFOs and company finance departments face an array of business issues in dealing with this changing environment as a business partner for the management of their companies. EY Advisory helps clients enhance their CFO functions and build more efficient and effective finance departments to achieve their strategic goals.

Business areas and issues we can support

Our main Finance services

Finance needs to shift the emphasis of its role in the organization by delivering traditional and essential functions more efficiently, thereby enabling a greater focus on business partnering. EY Advisory supports this transformation process by identifying issues and solutions from conceptualization to implementation.

Strengthening group governance by standardizing and visualizing operations and information that support group management, while rebuilding finance departments' structures and processes that support group decision-making and management of subsidiaries.

Devising concrete and effective measures to improve asset and investment efficiencies across a group, and ensuring those measures are thoroughly implemented so that they help augment corporate and shareholder value.

Reforming finance department design, personnel developments, work processes and IT systems to achieve cost efficiency while ensuring appropriate governance and control.

Commentator Business Partner

CustodianScore Keeper

Business Skills

Accounting skills

ProcessDelivery

Direction�Setting

Expected role up to now

New focus

▶ Finance as commentator, explaining the business story in numbers and variances

▶ Business recognizes the value of decision-making support available within Finance and requests support & comments as required

▶ Acts as business advisor and integrator of the total business view

▶ Provides insightful and robust challenges and supports commercial decisions

▶ Takes ownership for and actively manages the financial drivers of value

▶ Role focused on book keeping▶ Efforts concentrated on transaction

processing and providing month-end/year-end reporting

▶ Inward looking culture

▶ Role focused on leading corporate governance▶ Works with the business to monitor compliance

and manage internal controls▶ Custodian of assets and value protection▶ Conscience of the business

Reinforcement and enhancement of finance functions

We provide full support to our clients in their organizational reform of finance functions. This includes designing functions and preparing action plans as well as developing the motivation and skills (Will/Skill) of staff. Our support aims to create a highly functional group that contributes to management by providing appropriate financial information and operates efficiently.

Streamlining of financial operating processes

We provide comprehensive support for streamlining accounting processes to respond effectively to management needs and disclosure requirements while maintaining the quality of accounting and operations. The scope of services range from identifying issues, to setting objectives and making improvements.

Sophistication and improvement of budget controls

We help clients build budget control frameworks, processes, and systems for effective, industry-tailored PDCA, enabling them to keep tabs on project progress and more quickly implement steps needed to reduce costs and increase profit.

Introduction or enhancement of performance evaluation systems

We deliver a wide range of services to help clients build performance evaluation frameworks geared toward positive reinforcement, from setting performance management indicators (financial and non-financial) to establishing KPI management processes and management data analysis tools.

Global treasury management

We support clients in conceptualizing and implementing measures to enhance treasury management. These measures include improving intragroup funding efficiency, controlling foreign exchange risk and optimizing procurement costs. We also help clients strengthen their financial governance by revising group financial policies.

Shared services center(SSC)

We provide comprehensive support for implementing shared services geared toward optimizing controls and strengthening governance in accounting and finance. Our services draw on global best practices to help clients conceptualize and build organizational and work processes as well as roll out new systems.

IFRS implementation services

We offer comprehensive support for group-wide IFRS projects. These projects require collaboration with group companies and divisions both inside and outside Japan. Our services help clients develop and implement a range of policies that not only ensure statutory compliance, but also transform managerial accounting, processes and systems.

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The better the question, The better the answer,The better the world works.

What are your customers looking forConvenience? Or rarity?Find out how we are working with global companies to help transform their value chains.

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Domains

Global operating model transformation (OME*)

EY's global network provides clients with the supply chain management and tax advisory expertise they need to optimize their value chains, manage risks and enhance compliance from indirect tax and transfer prices perspectives. We also help clients visualize business process and improve cash flows by consolidating functions at RHQ or CoE.

Digital supply chain design support

We support clients' efforts to transform their value chains by using digital technologies like IoT, robotics, and data analytics. These technologies not only enable clients to reduce costs and boost efficiency, they also help them envision and create new value chain and business models.

SCM enhancement by S&OP process implementation

We support clients enhance monitoring and control to improve their cash flow and achieve their financial goals. This includes supply chain management aimed at improving customer service levels and optimizing inventory levels, as well as consolidating global sales prices, manufacturing costs, and foreign exchange data into a One Number system.

PLM road map design andimplementation support

We help clients design and implement road maps for Product Lifecycle Management (PLM). Clients use these road maps to enhance product design information management, modularize and standardize parts, build more flexible production networks, achieve IT-leveraged masscustomization, and provide high-quality, low-cost after-market services.

Direct/Indirect procurement cost reduction

We support clients in building frameworks for continuous cost reduction. These frameworks analyze cost factors for direct and indirect procurement and benefits to identify cost reduction target and visualize the procurement process and forecast vs. results. We also help clients enhance compliance level by scrutinizing contracts and performance of suppliers.

Data governance to support value chain transformation

We help clients enhance governance of transaction data and master data in order to maintain operating efficiency, scalability, and the consistency and quality of data that impacts customer response speed in their global businesses.

Corporate management visualization (EI&A*)

Our ability to leverage data analytics, business intelligence, enterprise performance management, and information integration platforms supports clients in establishing corporate management infrastructure. Our comprehensive information management practices observe transformations of value chain and utilize those insights to improve businesses.

Supply Chain & OperationsMarkets are diversifying. Production and sales centers are becoming globalized. Price wars are heating up on a global scale, and the threat of natural disasters looms. These internal and external forces are compelling companies to transform their value chains. That means adjusting supply-demand processes,enhancing cost competitiveness, reducing lead times and preparing business continuity plans. Companies also need to take these processes into consideration when expanding their supply chains globally. EY Advisory provides a full range of services to support clients appropriately manage change and transform value chains. These services include strategic planning, process reform, and IT system rollout, establishment and operation.

Our main Supply Chain & Operations services

Example of approach to transforming Supply Chain & Operations

*Operating Model Effectiveness (OME) is a framework that aims to optimize supply chain operations while maximizing tax benefits and other business structures and operations.

*Enterprise Intelligence and Analytics (EI&A) is a framework that aims to improve performance and reduce risk by leveraging various information a client owns from a management perspective.

Business areas and issues we can supportAmid expanding global networks, our clients need to adopt consistent operational management methods within their business networks. Information and data required to make corporate decisions need to be obtained accurately and efficiently.

Identifying the benefits that clients can expect from leveraging advanced digital technology in their product development and supply chains, and how this technology can be applied to resolve their existing business issues.

Building a flexible and scalable IT infrastructure to handle changes as supply chains constantly change as a result of group company reorganizations and acquisitions of overseas entities.

Step1Supply chain assessment

Step2 Detailed design of

supply chain transformation strategy

Step3Implementation and

stabilization of operations

・Understand AS-IS operating model・Identify business issues and analyze

root cause・Identify issues and examine

measures for resolution・Prioritize measures for resolution・Develop project plan for

transformation

・Define the scope of transformation of business processes

・Design processes, business rules and organization

・Set KPIs・Verify effectiveness of

transformation and business case

・Define implementation and stabilization plan

・Prepare for new business process introduction (e.g., support tools development)

・Execute new business processes・Change management・Monitor status of new operating

model・Assess status of initial operations

and develop improvement plan

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The better the question, The better the answer,The better the world works.

Omni-channel, digitization, service experiences: what do your customers expect from you?A mix of fragmented initiatives is no way to impress your customers. You always need to see things from their perspective and do what's necessary to win their trust.

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Domains

• Set targets: Goals/expected effects/desired end-state/priorities• Pre-define: Customer experience/communication/personas/interface points• Research: Customer analysis/technology/industry-wide trends

• Set customer experience priorities: Complexity/products/value provided• Refine customer experience• Design customer journey

• Create target customer experience• Simulate customer experience• Set priorities

• Define capabilities: Skills, technology, data, governance• Analyze capability gaps• Devise capability application plan

• Formulate deployment plan• Select technologies and tools needed• Plan pilot

• Implement pilot• Measure effects• Implement business

• Monitor and establish improvement cycle• Plan next steps

Assessment Innovation Design Examine means Deployment plan Implement/Expand Improvement

CustomerTrust ? it's what every company needs to change the world. Building trust with customers means building relationships: getting a deeper understanding of their needs, fostering dialogue, and giving them a memorable customer experience. Everyone knows that earning customers' trust is essential to a company's success. But while each encounter with a customer is a chance to win their trust, it's also a chance to lose it. Today's world demands constant digital contact with customers, unique and memorable customer experiences, collaboration with partners, and innovative solutions to customer problems. EY Advisory helps clients transform their customer experience through marketing, sales, and service strategies designed to build and maintain customers' trust.

Our main Customer services

Example of Digital Experience Design approach

Experience leadtransformation

Customers' relationships with clients' products and services comprise "journeys" in which value is tailored to their changing emotional needs throughout their life cycles. We help clients design, implement, and validate plans and initiatives for delivering value throughout the journey.

Digital marketing/Data-driven marketing

With companies making the shift to digital business, leveraging customer touch-points, digital and offline channels as "Omni-channels," and customer and third-party data is essential to success. We help clients develop digital and data-driven marketing plans and strategies to maximize their profits, as well as plan and roll out digital platforms to support those strategies.

Sales force efafectivenessWe help clients design concepts to transform sales processes and channels, link sales and supply chain management functions, and define roles within their sales organizations. These services maximize ROI and advance change management in their sales forces.

Service transformation

Service centers and contact centers are key touch-points in building customer satisfaction and brand loyalty. We help clients transform these centers into a more customer-oriented form with preventative maintenance ideas tailored to individual customer's needs, as well as create service menus, data transmission rules and methods, and KPIs designed to enhance their level of service.

Change management & rollout

We provide training and coaching to help internal and external business partners and departments adjust their mindsets to new strategy, processes, rules, organizational structures, and areas of responsibility. This is essential to ensuring that customer strategy planning, execution, and monitoring proceeds smoothly and efficiently and becomes part of the organizational culture.

Business areas and issues we can supportPromoting clients' brands through communication and services at all customer touch points, including business partners, to ensure that customers fully appreciate the appeal of those brands.

Collecting and analyzing word-of-mouth data from social media to enable integrated, multi-platform strategies that reach all customer touch points ̶ the Web, smartphones, SNS, and stores as "Omni-channel"

Building global customer relationship management frameworks with the key account management functions clients need to expand their business worldwide, regardless of inbound or outbound; ensuring all hubs worldwide are integrated into those frameworks.

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The better the question, The better the answer,The better the world works.

How do you build a high-performance organization ready to compete in an ever more diverse world?We can help you envision a new organizational and human resource management models that transcends conventional approaches.

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Our main People Advisory Services

Total reward and talent management

Developing organizational and human resources strategies, devising action plans and providing implementation support

Revising HR strategies and human resource management and formulating personnel plans (staff placement) • Redesigning career paths, personnel portfolios, mployment policies, staffing

plans,compensation systems

Human resource model/Career path design

Establishing human resource models in line with management policies and designing career paths to match growth and benefits• Formulating career plans, designing rank systems, designing occupation and course

divisions

Supporting design and introduction of HR systems

From designing to introducing HR systems tailored to changes in external environments and management strategies• Revising rank, evaluation, compensation systems, conducting training on new systems

Supporting human side of M&A and restructuring

Maximizing effects of restructuring by addressing relevant personnel and organizational challenges, such as organizational integration and spin-offs• Integrating personnel risk evaluation systems (PMI)and HR transfers, reallocations and

change management

Supporting HR/Organizational optimization

Promoting qualitative integration of HR and organizational structures during transformations, e.g. business restructuring, work process overhauls, and benefit system revisions.• Transformation process facilitation,workstyle reform (optimizing equipment,

environment, and employment conditions), mindset transformation

Global HR

Global talent managementStrategically selecting and cultivating human resources that can expand business globally• Certifying core positions and talent, visualization of ideal human resources, modeling

and employing competencies, selection and cultivation, building promotion and transfer systems, selection criteria for overseas deployment, global engagement surveys

Global HR systems /HR systems set-up

Building personnel systems that enable global talent management• Building evaluation, compensation, rank, hiring, position, benefits systems, global

personnel audits, planning and running global personnel meetings, helping spread corporate philosophy worldwide

Global talent mobilityEstablishing rules for movement of human resources between countries • Resources for overseas deployment (global mobility policy, regulations for overseas

employees, transfer contracts, assignment letters), personal income tax returns, visa processing services, advisory services for pay disparity and certifying donations and PE

Supporting new ventures

Establishing systems and functions needed for new ventures• Hiring: Selecting local vendors, establishing hiring criteria, interview training• Personnel systems: Building qualification, compensation, evaluation systems needed for

startup• Human resource development: New employee training, career development• Pre-deployment training and mid-deployment refreshers for overseas employees

HR transformation and business process outsourcing

Workstyle reformBuilding and evaluating intranets and corporate info portals and reforming workstyle using IT devices such as e-mail and mobile phones• Mobilizing work, digitizing data, enhancing knowledge sharing

Workforce managementCutting labor costs and raising income through optimized human resource placement in sync with shifts in personnel needs• Building staffing optimization models (ABC), workforce management systems

HR information systemsDevising systematization plans from selecting packages to building and establishing personnel data systems• Large-scale personnel and pay systems including ERP

BPO / SSCStandardizing and visualizing personnel work processes through pattern recognition and introducing SSC/BPO• Personnel BPR, business process outsourcing, setup of shared services centers

Human resource development

Devising human resource development strategies and action plans

Helping businesses continuously grow by developing and utilizing human resources and leveraging personnel systems for human resource development• Designing career plans, restructuring human resource development systems, enhancing

personnel evaluation systems, transforming management mindsets

Training programs

Overall program design and operational assessments for targeted human resource development• Developing next-generation executives, branch managers, sales leaders, R&D theme

leaders• Assessments, linking Off-JT & OJT, successor development programs, FA and internal

recruitment systems

Change leadershipBuilding and managing frameworks and processes to transform mindsets, based around developing change agents at every level of the organization in a variety of situations• Design of communication plans, workshops, rollout processes and monitoring tools

Diversity and inclusiveness

Promoting diversity and organizational transformation

Management strategy-based human resource management policies integral to promoting flexible workstyles and creating inclusive workplaces• Coordinating management and diversity strategies, devising personnel policy-based

diversity policies and roadmaps for promoting them, creating flexible workstyles and workplaces to accommodate them, plans to advance communication with employees and workplaces

Leveraging diversity in human resources

Devising training and skill development programs to meet the needs of diverse employees (women, non-Japanese, persons with disabilities, LGBTs) and their supervisors and managers• Diversity skill development programs including inclusive leadership, inclusive workplace

management skills, female manager development, mentoring and sponsorship based on Law for Promoting Success of Women in the Workplace

DomainsPeople Advisory ServiceHigh economic growth can no longer be expected in Japan, so companies are faced with the issues and challenges of both expanding business overseas and streamlining domestic business. The question is - how can companies build management systems to include more non-Japanese employees, more flexible work environments and more non-regular employees and employees with disabilities. By developingsophisticated people and organizational management systems, companies will be able to develop global talent, harmonize multicultural diverse organizations, and build effective group governance structures. Companies need to enhance their organizational strength to become competitive and grow. EY Advisory helps clients maximize their corporate value by providing comprehensive services ranging from strategic planning of people and organizational change to the development of human resource management and diversity and inclusion services.

Business areas and issues we can supportOur clients need change management support when they do not have the capacity or capability to deliver improvements in performance.Our clients need to continuously manage their workforce to deliver services in line with changing business priorities and customer demands.Our clients need to continually adapt to change to which improvement programs are requiredthat can lead to more effective and efficient human resource functions.

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The better the question, The better the answer,The better the world works.

How will business decisions at the present turning point be perceived 20 years from now?EY Advisory helps you analyze trends of a period of increasingly complexity to make management decisions needed to take your business into the next generation.

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Example of Strategy (introduction of management controls during a period of decline)

Step1Identification of issues Formulation of response plan Implementation support

Step2 Step3

①Introduction of management 　controls during a period of 　decline

Issue

①Divisional organization②Culture of employee 　deployment③Experience of success④Internal competition⑤Speed

5 barriers

①Withdrawal control②Scenario planning③Visualization model④PMO installation model⑤WBS model⑥Response acceleration model⑦QCD model

7 tools

StrategyThe world is bursting with business opportunities ̶which ones should you focus on? And how should you change the way you operate? Businesses comprise a wide-ranging and complex set of elements, and it's more important than ever to have an agile management strategy so that businesses can respond quickly to changes in the business environment. EY Advisory helps clients formulate and implement strategies best for the client by utilizing our network of highly-skilled professionals inside and outside Japan.

Our main Strategy services

Management strategy designing

How should companies build competitive advantages to achieve continuous growth in an increasingly competitive market? And how can they convert that competitive advantage from strategic positioning into organizational capabilities, using structural transformation to build a stable management infrastructure and create new value through M&As? We help clients realize their mid- to long-term growth potential, including their ability to adapt to changes in the business environment.

Business restructuring through IoT

Our services help businesses achieve dynamic, qualitative transformation by merging cutting-edge technology with their corporate strengths. We provide robust support to clients in transitioning to new business models that position them as innovators and challenge the competitive order in the industry.

Mid-term management planning

What kind of picture of the future do companies paint from a mid- to long-term perspective? By back-casting from their goals, is there a realistic path for them to achieve non-continuous growth? How should they operate their business in an era of rapid environmental change? We help clients turn strategies for addressing these challenges into executable plans.

Visualization of business management

How can companies get a firm grasp on the dramatically changing conditions across multiple businesses worldwide and make agile decisions in response? We help clients build frameworks for making rapid and clear management decisions by selecting and processing the appropriate data needed for management decisions and visualizing it as "living" data.

Company-wide cost reduction

Even with robust cost-cutting programs, most companies still have room for improvement due to organizational barriers and a lack of know-how. We use our wealth of case study-based know-how and benchmarks to help clients maximize the effects of cost reductions through internal streamlining and external negotiations.

Launching new businesses

There are always new business opportunities to be found by leveraging companies' existing management resources and changes in market structure stemming from changes in the macro environment. We help clients dramatically improve their potential for success in challenging new business areas by building effective business models for capitalizing on those opportunities. We can also create refined business models on short notice through rapid and repeated hypothesis testing based on sophisticated project management.

Global program management

In a business environment where companies are expected to deploy business activities on a global basis and reinforce ties with their foreign affiliates, we use our wealth of experience and our global program management framework to help develop and reinforce global business management structures.

Business areas and issues we can supportPromoting clients' brands through communication and services at all customer touch points, including partner companies, to ensure that customers fully appreciate the appeal of those brands.

Restructuring businesses that are expanding on global fronts to take full advantage of group strengths, achieve medium- and long-term growth, and reform group management; rebuilding management infrastructure to make this possible.

Revising clients' existing business strategies and rebuilding their existing operations in response to changes in the competitive environment, while capitalizing on strengths of their products and services to accelerate the pace of emerging market development.

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The better the question, The better the answer,The better the world works.

Are you making the most of what you've got? Or creating new value-added?Find out how EY Advisory helps companies decide whether to choose an investment strategy in the direction of innovation or optimization.

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IT environments are continually advancing and changing. Its utilization in business management is a source of competitive strength amid increasingly tough competition. Even during recent severe economic conditions, there were many progressive companies that fully utilized IT to generate further growth. How does the IT environment of your company compare with your rivals? At EY Advisory, we support the planning and implementation of an IT strategy that will serve as a source of corporate strength, by introducing cases of companies in various industries and progressive methods in similar industries.

IT Advisory

Our main IT Advisory services

Business areas and issues we can support

Our clients receive requests every day from the field for IT improvements but do not understand the investment benefits or the suitability of the measures they are trying to implement.

We help interconnect multiple concurrent IT projects and assist the organization and its people to manage workloads.

We help our clients with the important task of assessing the adequacy of IT work performed by contractors and in addressing the lack of IT governance and concerns over IT security.

Strategy

CIO support and assistance in developing the next CIO

We offer support for a wide range of operations that a Chief Information Officer undertakes in his or her role as the highest ranking officer handling corporate information strategies, including management and assessment of IT investment and transformation of IT functions. We also assist in developing candidates as future CIOs through facilitating execution of actual operations.

IT strategy planning supportWe support the planning of an IT strategy (mid to long-term plan) that provides a competitive edge, taking into account compatibility with management strategy, trends in customers' industries, progressive initiatives in similar industries and other factors.

Investment efficiency analysis and IT design planning support

We support the planning of effective IT design taking into consideration factors such as investment benefits, as measures responding to local needs and industry trends. We also help with RFP creation when launching IT new projects.

IT governance and standardization support

We support the establishment of IT governance frameworks (organization, approval authority, responsibilities and roles, personnel resources) and design of standard definitions and management processes for IT service operations and technology.

IT program and project management support

We support the implementation of PMO operations to achieve initial targets and manage costs, quality and delivery control in IT projects, and operational control across multiple projects.

Application

IT design planning supportWe support IT strategy planning necessary for achieving mid to long- term management targets and design roadmaps that present the direction in which IT investment should head.

Application development and installation support and operational transformation support

We support the construction of new applications and the installation of individual solutions in the forms of CRM, ERP, BI, CTI and OCR. We also help with BPR and modification of procedures that accompany systematization.

Existing systems enhancement support

We offer support in planning, managing and the implementation of plans to improve deteriorating performance of core and other existing systems and support enhancements to data entry interface functions that have become inefficient.

Technology & Architecture

Innovative technology installation support

We offer support in planning, managing and implementing plans to make use of innovative technologies such as cloud, virtualization, thin client, big data, mobile and open software.

System architecture design support

We assist in system architecture design to mitigate risks associated with the installation of a new system, as well as reduce TCO and realize agility. In addition, we support data integration and other operations performed within a firm or between group companies.

EA implementation supportWe support the implementation of Enterprise Architecture (EA) that complies with the standards prescribed by the Ministry of Economy, Trade and Industry for the purpose of optimizing overall corporate systems.

TCO reduction supportThrough automation, virtualization, sharing, outsourcing among other operations, we support the implementation of reduction measures for TCO related to IT, namely, systems operation, maintenance, monitoring, software licenses and servers.

Information security governance enhancement support

We offer a wide range of services to help clients resolve issues relating to corporate information security. Our services include performing assessments with security specialists, identifying risk areas, offering advice on solving issues and assisting in the implementation of IT solutions.

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The better the question, The better the answer,The better the world works.

Will digital help us do less or be more ?EY Advisory provide the digital business know-how to help leading organizations tackle the big, complex industry issues and sustain growth.

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Digital program management

People and organizational change

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Businessagility

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accounting

Building business agility

DigitalWe live in an age of innovation and digital is transforming everything we do. It is changing the possibilities, affecting every individual, organization, business and government. EY Advisory believes a better working world means addressing big, complex industry issues and capitalizing on opportunities to help clients grow, optimize and protect businesses. We believe that embracing and exploiting digital can make the difference between your organization becoming a smart connected business or dying.We can help you develop and execute an agile business strategy that enables you to adapt to a constantly changing digital environment, thereby seizing opportunities and managing risks at every stage of your value chain. Together, we can help you deliver better outcomes and long-lasting results, from strategy to execution.

Our main Digital services

Digital enterprise strategyWe can help you design and deliver a new strategy, business model and operating model, fit for purpose in a digital world along with a clear roadmap and business case.

Digital incubation & innovationWe can help you establish an innovation portfolio approach to activate and manage innovation. We also help build business model, process, product, service, experience and business model innovation.

Digital experience transformationWe can run large digital enablement programs for you, tying together purpose, experiences, capabilities and people to provide an iterative and ongoing approach to transformation.

Digital supply chain & operations enablement

We can recommend new ways of manufacturing and distributing products and services, providing running back- and middle-office operations, enabled by new disruptive technologies.

Digital risk, cyber, governance and audit confidence

We can help you catalogue your existing digital spending and assets to identify risks and design an operating model for digital to comply with regulations and build trust.

Business areas and issues we can supportCreate new business value and perform digital business transformation using Social Media, Mobile, Analytics, Cloud Computing, Cybersecurity, IoT (SMACCI).

Create new business operation model using AI, AR and Robotics.

Improve and enhance the customer experience using digital tools such as social media.

Respond to increasing cybersecurity risk in a complex technical landscape by setup andoperationalization of Security Operation Center (SOC).

Assist clients in performing digital readiness and cyber program assessment to identity issues; plan for improvement measures.

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The better the question, The better the answer,The better the world works.

Can complex transformation programs succeed with conventional management approaches?Our program management approach looks at a broad array of elements from multiple perspectives, helping clients achieve results through integrated governance.

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Domains

* “Program” and “project” both refer to strategic corporate efforts, but differ slightly in their definitions. • Program: An effort that consolidates and manages several related projects together, providing greater benefits and allowing for more precise

control than delivering projects separately.• Project: An effort to produce a unique result in a set time period. Focus is placed on achieving a balance of end product or state, deadlines and

costs.

Project Management 16 imperatives

Today’s PMO

INITIATIVE IDENTIFICATION &

SCOPING

Prioritize, Budget & SelectInitiative Identification

SponsorshipAlignmentpon Scoping & Visioning

APPROACH & PLANNING

Business CaseDevelopment

Defining an Approach

Planning & Scheduling

Resource Planning & Ramp Up

EXECUTE &DELIVER Resource Management Quality Management Stakeholder

Management Schedule ManagementREPORTING & CONTROLLING

Benefits Management & Tracking

RAID Management

Change Control

Governance Control

Program ManagementThe competitive environment is changing rapidly. As companies face pressure to implement transformation that transcend their traditional division structures and operating procedures, it is becoming more essential for them to pursue programs and projects* that generate organization-wide results in line with their management targets. These programs and projects involve diverse teams comprised of domestic and overseas affiliates and departments across the group, as well as experts and vendors from outside the group. Success hinges on building a solid management system and flexible yet precise operations. EY Advisory's global network provides methodologies and knowledge to support clients' program and project management on a global scale. Our consultants bring a wealth of experience supporting Japanese companies' projects at the working level.

Our main Program Management services

Holistic Portfolio Management

We provide decision-making and management support in evaluating priorities and risks and selecting the right programs to achieve strategic goals.Our services help clients roll out strategic portfolio management methods for better allocating their limited resources, as well as ensure fully optimized program execution through continuous monitoring.

Complex Program Management

We help clients respond effectively to challenges in executing large-scale programs involving multiple vendors and stakeholders, resulting in more visible programs/projects and stronger governance. Our services include setting up and operating program management offices (PMOs) and supporting local project leads.

Program Performance Center (Implementing program management standards and tools)

We help clients implement comprehensive management for programs involving multiple stakeholders. With EY's extensive toolbox, we help clients create continuously applicable standards and tools that enhance the quality of their program and project management.

Program Evaluation Center (Assessing and improving program health)

We provide assessments of clients' program and project operations in non- transparent situations. Our experts review program management methods, tools, systems, and other aspects of status and operations from a variety of perspectives, including risk control, schedule management, and scope change management. We use our findings to help clients identify problems and propose solutions.

Global program support

Clients can tap into EY's global network and common program management framework to help implement their global programs and projects. Our multilingual consultants support clients' global projects leveraging experiences in cross-border projects involving complex global and local governance structures and linguistic and cultural barriers.

Business areas and issues we can supportEnsuring proper governance, adherence to schedule, and visibility of status in global-level, large scale projects.

Creating project standards and applying consistent project management to programs involving multiple vendors.

Appropriately allocating resources and budgets, managing interdependence of multiple concurrent projects within the company in line with strategic goals, and ensuring efficient and effective results; managing priorities as needed to use limited resources effectively in response to changes in the business environment.

Our Sectors

Automotive & Transportation

　Metal & Mining

Chemical

　Power & Utilities

Consumer Products

　Oil & Gas

Financial Service

　Real Estate

Government & Public

　Retail

Healthcare

　Technology

Life Sciences

　Telecom

Media & Entertainment

The better the question, The better the answer,The better the world works.

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As technologies including self-driving cars revolutionize the mobility environment, how are you responding?EY works alongside automotive clients to create action plans that yield continuous value.

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Our main Automotive & Transportation services

Examples of Automotive & Transportation projectsService area Description of main services

Global operation standardization support

Help define standards models for finance in head offices and overseas subsidiaries and for management accounting operations and systems, and support implementation of change management, testing, transitioning, and training toward their introduction.

Consolidated business management support

Supporting the improvement of a platform for managing by-product profitability information on a consolidated basis. Revenue and cost data of each product category (completed vehicles) are acquired from head offices, manufacturing subsidiaries and sales subsidiaries.

Reorganization supportHelp uncover work process and system issues and devise action plans aimed at transitioning to an organizational structure that allows for faster and more appropriate decision-making.

Overseas expansion supportHelping to create an accounting system deployment plan for subsidiaries in the ASEAN region, and introducing the plan via our umbrella company in the region.

IFRS introduction supportSupport in the transition from Japanese accounting standards to IFRS with the establishment of a group company accounting policy, assessment of the change impact on business processes and information systems, and its deployment to subsidiaries.

The automotive industry is experiencing dramatic change, driven by revolutionary innovations such as Industry 4.0 and IoT, the generational shift from internal combustion engines to electric cars and other electric powertrains, and the need to comply with current and future environmental regulations. In the midst of such rapid change, automotive companies need to address an array of complex and diverse challenges to achieve continuous growth, including building business models that leverage self-driving and telematics networks, improving profitability in a cutthroat Japanese market characterized by a growing age gap, and global-scale reorganization to take advantage of emerging overseas markets such as China and India. EY Advisory provides services designed to help automotive customers solve their business issues. Our services include developing corporate visions and strategies; building the people, organizations, work processes, and IT systems needed to implement those strategies; enhancing management infrastructure; and improving actual operational processes.

Automotive & Transportation

Supporting consolidated business management

We support the transformation of a consolidated business managementplatform that can gather profitability information by segment, such as by business line and by regional sector to achieve fast managerialdecision-making at a global level, and to accurately produce profitability information on a consolidated basis for the planning and development of new vehicles.

Supporting dealer management

As the sales volume of new vehicles in Japan continues to decline, we support the improvement of a business management platform that achieves not only the management of new vehicle sales but also includes after sales care such as parts sales and repairs, and help streamline business process and reform sales force operations.

Supporting business strategy formation

In response to drastic changes in external circumstances, we provide support for planning global level business strategy and regional strategy, investment strategy toward the development of new technology, and strategic alliances and M&As.

Supporting overseas expansion (to emerging nations)

We help clients expand in emerging markets, such as BRICs and ASEAN nations by supporting local market research, incorporation, and the deployment of new business process and information systems.

Supporting the formation of global supply chains

We provide support for building globally evolving supply chains that link completed vehicle manufacturers to parts and materials manufacturers, and for developing relevant business processes and information systems.

IT strategy and cybersecurityWe support clients' efforts to build IT governance and service management frameworks, assess their vulnerability to cyber incidents, and project losses from such incidents.

Business areas and issues we can supportThe client finds it difficult to gather the data needed for profitability management by segment on a global group level. A business management platform is needed which enables timely and accurate information for decision-making.

Our client has difficulty improving profitability from operations focusing on new car sales. Our client wants to reform its dealerships' overall business, including after sales services such as parts sales and repairs.

The client conducts a country-wide program and multiple related projects simultaneously but finds it difficult to manage projects. Projects need to be managed based on practical and effective project management methodologies.

The better the question, The better the answer,The better the world works.

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Can the introduction of the latest AI technologies solve the problem of SCM complexity?Collaboration with experts in AI/Robotics technology and experienced consultants in the chemical industry will support SCM and innovations to their solutions.

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Our main Chemical services

Examples of Chemical projectsService area Description of main services

Supporting supply chain model improvement in concert with innovating core systems

Revamp supply chain model of a midsize plastics processor as part of addressing their most important business issue ̶ innovating their core systems. EY Advisory helps the client reexamine their supply chain model and implements the overall project.

Supporting cost management improvement

Support major chemical manufacturer's project to revamp its cost management philosophy and framework as part of a reorganization of its chemical products business, improving the precision of its revenue forecasts in its primary business.

Supporting SFA system introduction consideration for customer relationship management

Support midsize chemical manufacturer's roll out of an SFA system in response to diversifying product specifications in order to manage product knowledge sharing and links between customer outreach andsigned contracts. EY Advisory helps the client analyze customer touch points, identify targets for improved management, and execute the SFA system rollout project.

As value chains for chemical products expand globally, customer demands are becoming increasingly sophisticated. Companies are expected to deliver multiple product types with short lead times while reducing losses on the production line, requiring frequent changes in setup. Meanwhile, regulatory and social requirements for safety improvements are forcing companies to respond to challenges such as enhancing lot management. EY Advisory's highly experienced consultants use the latest data and forecasts on the external environment to help clients solve their internal issues and deal with marketdemands. We draw on our global network to provide close and coordinated support to worksites not just in Japan, but around the world.

Chemical

Implementation of transitions to monetary-based supply chain management (S&OP)

We assess clients' existing core systems and supply/demand management systems to help them create roadmaps needed to deliver Sales & Operations Planning systems as well as build and implement such systems.

Enhancement of product life-cycle management

We help clients build product life cycles that integrate customer demands into product planning, as well as frameworks that support their inclusion into product recipes (material composition and manufacturing process data).

Enhancement of customer demand/complaint management

We provide support for building systems for managing complaints arising in day-to-day operations. These systems treat complaints as a key ingredient that customers provide to the product, as they allow clients to gauge what kinds of functions and performance customers expect.

Examination of AI use

Although the potential uses of AI in the chemical industry are still largely unexplored, clients can tap into our deep expertise in AI technology and extensive experience applying it in other industries to devise effective policies to apply AI technology to their businesses.

Promotion of Industry 4.0We provide comprehensive services related to the set of challenges known as Industry 4.0. These services go beyond technologies such as IoT to encompass complete business and supply chain models.

Business areas and issues we can supportTransitioning production and business management frameworks from a quantity basis to a monetary basis, and building IT systems for optimization.

Using the unique features of clients' products in sales activities to boost customer revenue.

Devising strategic plans for utilizing cutting-edge IoT and AI technologies; finding ways to apply Industry 4.0 to clients businesses.

The better the question, The better the answer,The better the world works.

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Do you have a clear picture of the value you provide to customers?Understanding the value you provide to customers is an essential element in developing appropriate pricing strategies.

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Our main Consumer Products services

Examples of Consumer Products projectsService area Description of main services

Formulating mid-term management plans

・Help major food manufacturer create mid-term management plan to revive struggling business

・Revival plan focused on reorganizing business and eliminating/consolidating production hubs

Digital marketing・Help major food manufacturer analyze buyer profiles and implement

improvements aimed at proposal-based sales・Help design processes, organization, and IT tools and build new system for

continuous analysis of buyer profiles

Supply chain optimization・Support major beverage manufacturer's project to consolidate distribution hubs・Redesign using simulation tools to optimize production/distribution networks・Support efforts to rationalize indirect distribution services and reduce staffing

in the field

Expanding to emerging markets・Help major food manufacturer conduct market surveys and test marketing in

emerging countries・Support establishment of locally incorporated companies

Manufacturers of consumer goods are experiencing an unprecedented tough business climate, characterized by escalating price wars and the rise of private brands. Moreover, Japan's declining birthrate and aging and shrinking population herald an age where companies will struggle to survive without a strong product brand. As a result, many companies now face the need for long-term, multi- faceted transformation. With an accomplished team of consumer goods experts boasting a wealthof experience in Japan and abroad, EY Advisory provides services to help clients throughout the transformation process, from strategy planning to execution and establishment.

Consumer Products

Formulating mid-term management plans

Strategy planning consulting using EY's exclusive template・Templates for issues to be included in strategies for consumer goods

manufacturers・Formulating 4P (Product, Price, Place, Promotion) policies based on buyer

analysis and incorporating them into management strategies・Transitioning to market-oriented corporate culture through strategy planning

Digital marketing

We help clients build operations infrastructures that draw on not only existing POS data, but the websites and social media to analyze buyer profiles and use them in product development and marketing approaches.・Identifying issues through current state analysis (attribute-based buyer

profiles, campaign effects, buyer-social media/EC correlation, etc.) ・Conceptualization, prerequisite definition, system design & development,

transitioning, establishment・Project planning, executing, measuring effects of marketing approaches

Supply chain optimization

We provide services aimed at visualizing production/distribution channels and cost structures for complex, diverse supply chains, and rethinking a client's number of hubs, factory product lists, and distribution networks to minimize costs.・Visualizing entire supply chain through current state analysis・Designing cost-minimizing supply chain models using multivariable simulations・Planning and implementing efforts toward transitioning to new supply chain

models

Expanding to emerging markets

Planning of market surveys and partnering strategies for expansion into emerging markets　・Market surveys employing EY's global network・Generating lists of potential local partners・Analyzing profitability of expansion・Designing governance models for global head office and locally

incorporated companies

Operations strategiesWe help clients create consolidated management control infrastructures that collect revenue data by business and regional segment to enable rapid decision-making on a global level.

ERP introduction

We provide comprehensive support for ERP introduction, from conceptualization to transitioning and establishment.・Conceptualization and package selection・Defining prerequisites (work process design, systemization prerequisites) ・Design and development・Transitioning and establishment

Business areas and issues we can supportBuilding data and operations infrastructure for the purpose of creating long-selling hit products by getting a better understanding of buyers and evolving marketing efforts.

Restructuring logistics networks and rethinking factory product lists to minimize overall costs at existing factories and distribution hubs, as a precursor to the more expensive project of factory consolidation.

Preparing for overseas expansion in the short term by conducting surveys of potential countries toget a sense of which distribution channels make the best entry points.

The better the question, The better the answer,The better the world works.

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Are you able to rapidly release new products and quickly respond to regulatory changes?It takes future-oriented design with a commanding view to simplify operations and systems and ensure across-the-board compliance.

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Examples of Financial Service projects

Service area Description of main services

Operational services・Research and analyze impact of financial regulations on operations, and devise

response plan・Support regulatory compliance (e.g., FATCA, AML, BCP)

IT-related services ・Comprehensive support from coordinating regulatory requirements to building and introduction of operations and systems

Project management ・Company-wide program management・Support to individual project management and change management

Service area Description of main services

Operational servicesSupport for formulating mid-term business plans, developing sales channel merchandizing strategies, streamlining middle and back offices, and regulatory and FSA compliance (e.g., FATCA, AML, GSIIs, BCP)

IT-related services

IT support services for mid-term planning, sales enhancement, BPR, and regulatory compliance, including:・Creating systemization plans・Defining systemization requirements・Selecting packages and vendors

Project management ・Company-wide program management・Support to individual project management and change management

Coordinating reform with strategy and management plans is a key challenge for financial institutionsas they improve the complex relationships between operations, systems, internal departments, and responsibilities. EY Advisory provides advisory services for building the organizations, processes, and systems needed to improve operations and achieve systemic change. We also provide project management support to clients in introducing their new operations and systems.

Financial Service

Business areas and issues we can support

In response to market demands, organizing policies and defining operations and systems prerequisites for smoothly launching new products.

Getting an accurate understanding of the impact of regulation changes on operations and systems.

Efficiently recognizing the project status to ensure the stability of project management in complexprojects across multiple departments and overseas hubs.

Our main Financial Services

Operational services

Consulting on the design and improvement of organizations and operations・Supporting operational analysis, design and defining operational

requirements.・Supporting the creation of a regulation response, provisions, etc.

IT related services

IT-related consulting・Supporting systematization conceptualization and planning frameworks・Defining requirements for systematization.・PMO support in installing various tools (e.g., PEGA, SFDC, Ab initio)

Project managementPromoting close collaboration across multiple projects and assisting in providing necessary reporting to steering committees and other relevant bodies or persons, so prompt, appropriate decisions can be made.

Our support in the banking industry

Our support in the insurance industry

The better the question, The better the answer,The better the world works.

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How can we makesociety better?

We bring various players together ̶governments, universities, companies ̶to tackle social challenges caused by globalization and contribute to innovation.

Sectors

We are internationally certified in Information Security Management Systems (ISMS) under ISO/IEC 27001:2013, and in Quality Management Systems (QMS) under ISO 9001:2008.

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Examples of Government & Public projectsService area Description of main services

Research and analysis

・Research history and trends of foreigner acceptance policies in Japan and abroad・Research success of doctoral degree holders in management positions in the

civilian sector; identify and analyze positive examples・Research current contract procedures and implementation methods and

examine ways to improve them

Policy planning, advisory, and implementation;Administrative reform and evaluation

・Locate, select, and recognize employers engaged in diversity-based management・Commercialize the results of R&D on SMEs (examine new themes, expand R&D

results laterally, etc.)・Build platforms to cultivate innovative human resources; hold challenge-defining

exercises and other types of seminars・Conduct external assessments of existing administrative evaluation systems to

enhance administrators' ability to rethink their budgets and operations

ODA consulting ・Create a roadmap for developing a master IT plan to enhance the capabilities of Cambodia's General Department of Taxation at the request of JICA.

System rollout

・Leverage extensive experience in administrative IT to support the full range of system procurement tasks, including IT strategy planning, concept design, ideal scheduling, and developing procurement spec sheets・Prepare, implement, and manage progress of new service releases to fulfill

procurement scope, cost, and scheduling requirements

Development, operation, and maintenance services

・Draft design documents (basic/detailed) and develop prototype-enabled system to reduce impact of system releases, perform operations to support TCO reduction and conduct smooth maintenance services

Our social environment has become more complex in recent years, and the challenges are more diverse. In order to innovate and lead our global society, Japan must come up with in-depth plans and strategies for addressing social challenges as well as specific ways to implement them. The more seamless the connection between plans and strategies, and value, the greater the potential for meeting social challenges. We offer a full range of services aimed at helping clients resolve policy issues, from research and analysis to strategy planning, devising implementation methods, and results evaluations. We draw on experts from every field to create the highest performing teams that can handle each aspect of clients needs, including research, policy advisory and IT.

Government & Public

Business areas and issues we can supportThorough understanding and organization of data needed to evaluate and implement future policy proposals and measures.

Improving the quality of businesses and projects and translating that improvement into better results.

Achieving sounder administration by getting a clearer picture of current administrative issues and making concrete improvements.

Utilizing clients' global networks to deploy Japanese technology, expertise, and know-how overseas through ODA and other channels.

Planning and implementation of solutions that help governments plan strategies and addresschallenges by optimizing use of IT systems.

Our main Government & Public services

Research and analysis ・Conducting problem-solving research and using the results to analyze the mechanisms and causes behind the problems

Policy planning, advisory, and implementation;Administrative reform and evaluation

・Using specialized networks in Japan and worldwide to devise highly feasible policies and plans and propose thought-provoking ideas and directions・Implementing measures and business plans that address a variety of

stakeholders' desires・Reexamining administrative evaluation and designing, staffing, and

operating external evaluation systems・Support for administrative reform (e.g., current state analysis,

improving operations, outsourcing, improving public facilities, regional revitalization)

ODA consulting・Addressing challenges in the ODA sector in concert with EY firms

overseas, including organizational improvement, economic/financial (tax) system reform, and energy issues

IT system-related services・Providing comprehensive third-party expert support to public

administrators in solving their IT problems, with the goal of streamlining IT systems and improving their cost effectiveness

The better the question, The better the answer,The better the world works.

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What does it to be a medical, nursing careor welfare operator selected in Japan?With the advance of Japan's aging and declining population, we believe it is necessary that Japan employs a management philosophy rooted in local communities and customers and is deeply commitment to sound management.

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HealthcareThe environment surrounding medicine is becoming increasingly severe year after year, and a major priority seems to be stabilizing the management base for the future so that hospitals can consistently provide medical care that communities require. More specifically, what hospitals need to do going forward is to quickly detect the main problems and rapidly establish management improvement actions. At EY Advisory, we analyze customers' issues and problems and provide various timely and suitable services toward realizing sustainable growth.

Our main Healthcare services

Flow of services (example of general model in management improvement)

Current analysis phase Issue identification and improvement proposal phase Improvement execution phase

Marketing analysis

Financial and management resource analysis

Medical function analysis

Benefit-risk analysis by department

Efficiency and productivity analysis

Organization revitalization diagnosis

Management control system assessment

Issue identification through hearings Study of management control tools

Benchmark comparison analysis

Issue identification

Verification of critical success factors

Formulation of action plan

Decision on improvement execution plan Monitoring done through actual versus forecast management

Plan

DoAction

Check

Income improvement support

・Medical revenue improvement programMarketing enhancement strategy, main division enhancement strategy, patient and revenue growth strategy・Cost reduction program

Proper employment costs, material costs and overhead costs, review of commissioning, proper capital investment

Management control support

・Construction of management control system, cost price control & income control, BSC and target controlStrengthening of management control system, strengthening of cost price control function, support for improved quality of medical care・Hands-on management support, organization and personnel system

improvementAssigning management control specialists, reviewing various systems to revitalize the organization.

Facility redevelopment support

・Setting a future vision, basic plan, and design conditionsCreating a master plan, drawing up a business plan, reviewing facility functions and construction costs・Support for divisional management plans and construction of medical

data systemCreating management plans for each division, supporting installation of a medical data system, drawing up outsourcing plan

Business revitalization support

・Revitalization plansFinancial due diligence, business due diligence, drawing up a business strategy, planning a revitalization scheme, studying financial support measures・Execution of revitalization

M&A support, securing personnel needed to run the hospital, project control until hospital is opened

Medical policy support

・Survey and analysis of medical policy trendsSurvey of regional medical policies, various types of surveys for medical treatment fee revision, support for high level medical treatment and advanced medical treatment・Support for IT in medical treatment

Support for introducing various kinds of IT into hospitals and medical related institutions in response to medical policy trends

Business areas and issues we can supportBecause their strategy for responding to changes in the medical environment is unclear, our client does not fully understand the best direction hospitals should aim to progress in the future.

There is insufficient cash flow for the capital investment required to rebuild the hospital or strengthen the management base.

Our client is aware of the management problems but does not know how to take action on improvement points, improvement measures, and implementation.

The better the question, The better the answer,The better the world works.

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When we monitor our own health, who will prescribe drugs?In the new world of patient-centric healthcare, life sciences companies want to achieve better patient outcomes by transforming business models and improving market access.

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Life SciencesAre you ready to transform? - We work with pharma, biotech and medical device companies to address the speed and scope of change, connecting every stage of the patient experience. We help you see the big picture of your businesses today and into the future. And we can help you immerse your organization in the widest, deepest pool of ideas, experience and know-how so that you can create an innovation culture that enables transformation efforts to be both agile and future-proof.Our understanding of your industry issues inspire us to ask better questions. We then work with you to create more innovative answers. Together, we'll open a gateway to intelligence that can transform outcomes for patients and realize long-lasting results.

Our main Life Sciences services

Operational excellence

・ Rebuilding project management to make connections between and within functional silos

・ Supporting strategies and action plans of Diversity & Inclusion ・ Local implementation of global strategy for Japanese business environment ・ Use agile delivery for clearer focus on end-user requirements and faster

delivery

Commercial and market access

・ Supporting transformation of the MR sales model (multi-channel, medical science liaisons)

・ Develop and implement strategies of Health Economics & Outcome Research to support product life cycle

・ Bring commercial innovation to improve the effectiveness, efficiency and ROI of the sales force and explore new sales models and channels

Data analytics ・ Manage analytics as a portfolio as opposed to discrete projects・ Leverage agile analytics to improve decision-making and flexibility

Supply chain and manufacturing・ Analyze and improve planning accuracy to confirm product availability

while reducing obsolescence and discards・ Traceability assessment in Japan (from raw materials to products)

IT and cybersecurity

・ Provide CIO-facing services designed to support effectiveness of the IT organization

・ Help manage clients' third-party vendors and understand how to structure and manage these programs for better governance and cost optimization

・ Formulate concepts of research/clinical IT management infrastructure and introduction support

R&D excellence ・ Assess clinical cost system and support cost optimization・ Identify key success metrics and measure R&D operations against them

Business areas and issues we can supportProjects of drug development or logistics transformation are often deadlocked, when they span multiple locations across the globe. This is because they are designed by mono-domestic market strategy, insufficient communication and poor quality project management. We want to know what are the enablers of global project execution.

Our innovations faced various type of pressure, such as cost effectiveness adopted in the Japanese drug pricing system. We strongly believe that our pricing strategy should be renewed to balance social security expenditure and resources necessary to keep innovating new and better medicines.

With regard to MR visit restrictions and keeping down sales expenses, we need to design a customer-centric business model, leveraging digital technology to strengthen customer engagement and deliver an omni-channel customer experience. How do we stay leading edge?

Examples of Life Sciences projectsService area Description of main services

Operational excellence

① Plan digital strategy for work processes (Global mega pharma)② Establish shared services centers, and help transferring indirect work

processes (Global pharma)③ Apply global governance structure into Japan office (Global mega pharma)

Commercial and market access

① Change management for introducing new CRM system (Global med-tech)② Redefine MR/MSL roles and revising evaluation criteria/process with an eye on

future medical environment (Global mega pharma)③ Devise launch strategy with prospect of drug price policies in the future

(Global mega pharma)

Supply chain and manufacturing

① Help implement organization of SCM/manufacturing (Global mega pharma)② Devise SCM strategy for orphan drugs requiring complex manufacturing/

distribution processes (Global mega pharma)③ Outsourcing and logistics hubs for delivery of Investigational new drugs

(Global mega pharma)

IT and cybersecurity

① Strengthen group IT governance (devise service models, consolidate IT departments across worksites, build IT cost management system; Global med-tech)

② Develop cybersecurity strategy and roadmap based on global case studies (Global pharma)

The better the question, The better the answer,The better the world works.

Autom

otive &

TransportationC

hemical

Consum

er productsFinancial services

Governm

ent & P

ublicH

ealthcareLife S

ciencesM

edia &

Entertainm

ent

How useful is digital marketing in predicting people's feelings?We can help you use digital marketing in accordance with today's ever more complex and diverse media.

SectorsAutom

otive &

TransportationC

hemical

Consum

er productsFinancial services

Governm

ent & P

ublicH

ealthcareLife S

ciencesM

edia &

Entertainm

ent

Media & EntertainmentThe media and entertainment industry includes TV and radio, newspapers, video games, live entertainment, and publishing. It is this industry, more than any other, that is affected by – and should be at the forefront of – digital business. Companies that once built highly profitable businesses around certain services might suddenly find themselves expected to provide those services for free. Cost-cutting isn't enough - they need to build organizational, process, and IT frameworks that can keep pace with these massive changes, and be able to quickly develop flexible mechanisms and human resources that allow them to launch new and highly profitable businesses. EY Advisory helps clients get the most out of their efforts with its network of experts in the media and entertainment industry and related fields. Our experts combine extensive experience, strong track records, and deep knowledge to provide a full range of digital business services, from strategy planning to rebuilding and establishing operational systems and processes.

Our main Media & Entertainment services

Digital marketingWe provide digital marketing solutions that link up clients' internal customer data and customer behavior data as necessary with external DMP data to achieve new levels of customer satisfaction.

Preventing customer attrition through digital analytics

We provide solutions for using historical customer data to analyze the behavior of customers considering cancelling their subscriptions, as well as using other data analytics to reduce customer attrition.

Boosting cost competitiveness in sales management

The media and entertainment industry often requires complex sales management processes to cover a wide range of media types, and these processes in turn often require complex, large-scale system functions. We help clients explore ways to boost their cost competitiveness by visualizing sales management processes, organizing areas for improvement, and rebuilding systems.

Cybersecurity assessments

Media and entertainment companies are increasingly likely to be the targets of cyber attacks because of the customer data they possess. EY provides cybersecurity assessments for numerous companies worldwide; the experience and knowledge we gain from those assessments allows us to help clients build governance systems and processes as well.

IT program/project management support

Core systems in the media industry are frequently large and complex, and rebuilding them is often extremely difficult from a management perspective in terms of cost, quality, schedule, and achieving initial goals. EY Advisory brings extensive knowledge and experience in helping clients manage complex, large-scale projects as well as programs comprising multiple projects.

Business areas and issues we can supportRaising profits in new business areas by predicting customer trends using not only internal customer and DMP data, but also new technologies such as AI and IoT.

Leveraging the latest technologies such as AI and IoT to achieve digital marketing activities and improve customer satisfaction.

Building on existing cost-cutting efforts, cutting more costs by focusing on ways to reduce core system operation costs.

Examples of Media & Entertainment projectsService area Description of main services

Supporting sales management optimization

Help client visualize complex sales processes by media type; rethink sales management processes including quoting, ordering, and delivery; reduce man- hours, and cut back on and develop new support system functions

Supporting large-scale IT projects

Support project to rebuild core systems by helping conceptualize and design new operations, then working with the developer in the development phase on progress and quality management, resulting in a successful cutover

Providing media distribution infrastructure

Provide one-stop services to client ̶ including media production infrastructure, distribution infrastructure, and operations ̶ that allow client to save on work-hours previously spent communicating with multiple vendors for the same services

The better the question, The better the answer,The better the world works.

Metal &

Mining

Oil &

Gas

Pow

er & U

tilitiesR

eal EstateR

etailTechnology

Telecom

How is the metal and mining business going to respond to the coming wave of digital technology? Our team of experts in analytics and other digital services offer global case studies to help you create a vision for integrating digital technology into the metals and mining business.

Sectors

Metal &

Mining

Oil &

Gas

Pow

er & U

tilitiesR

eal EstateR

etailTechnology

Telecom

Metal & MiningThe ferrous and non-ferrous metals businesses are exposed to a variety of risks. On the one hand, they must optimize costs while ensuring continued supply. On the other, they face the need to strengthen their management infrastructure as those risks become more apparent and profitability declines. EY Advisory's pool of global talent and expertise stand ready to tackle the unique challenges of our individual clients in the metals and mining industry.

Our main Metal & Mining services

Comprehensive support for supply chain reform We help clients reform their supply chains end to end to optimize them not

only on a volume basis, but also on a profit basis and cash flow basis as well.

Support for revision of management control indicators

Our business portfolio management experts help clients develop indicators and build frameworks for monitoring overall corporate activities from both financial and management perspectives.

IT system diagnosisWe provide quick diagnoses of IT applications and infrastructure to determine whether IT systems meet clients' corporate requirements and whether costs are being optimized.

Business areas and issues we can supportEnsuring coherent, unified supply chain management to enable sound and rational decision-making on the most cost-effective distribution channels from a company-wide perspective.

Developing objective indicators for understanding the state of management.

Updating obsolete IT systems to ensure costs are optimized all around.

The better the question, The better the answer,The better the world works.

Metal &

Minning

Oil &

Gas

Pow

er & U

tilitiesR

eal EstateR

etailTechnology

Telecom

How will price disparities arising from increased renewable usage impact consumer mindsets?Our experts can help you rebuild your business with comprehensive energy supply chain models that reflect changes in consumer mindsets.

Sectors

Metal &

Minning

Oil &

Gas

Pow

er & U

tilitiesR

eal EstateR

etailTechnology

Telecom

Oil & GasThe shale gas revolution has brought about dramatic changes in upstream oil and natural gas businesses. The resulting mergers and acquisitions have triggered major changes in the retail market for downstream businesses in Japan. To survive in this new competitive environment, companies need to manage the changes in the overall market and rethink how they reduce operations costs and interface with customers. The consultants at EY Advisory leverage a broad range of industry experience to support upstream and downstream clients. We draw on our global EY network to provide close support to companies and offices in Japan and around the world.

Our main Oil & Gas services

Supporting customer management and redefinition of products and services

We help clients define the customer profile for oil and gas sales, identify customers matching that profile, and plan appropriate products and services.

Supporting review of functions of and redeployment of service stations

We help clients rethink the functions of their oil and gas service stations by stepping outside the conventional fixed model to explore new stations and expanding or consolidating existing stations.

Supporting review of management control indicators

As part of our support for developing KPIs for management decision-making across the entire value chain, we help energy clients design clear indicators for detecting and responding to fluctuations in oil prices ̶ the lifeline of their business ̶ and the resulting cost increases.

Supporting building of shared services centers

We promote shared back offices not only group-wide but also with partner companies and help clients explore the building of shared service centers from planning to rollout and implementation.

Business areas and issues we can supportGetting a firm grasp of the state of each business in clients' diverse portfolios to make it easier to see the big picture and enable timely decision-making.

Stemming the decline of downstream customer interface points in order to better understand customer needs and be able to explore new services.

Pushing the limits of optimization for internal indirect departments in order to strengthen management infrastructure.

Examples of Oil & Gas projectsService area Description of main services

Supporting reexamination of service configuration and supporting redevelopment of service stations

Help oil retail network revamp the positioning of its full-service stations.

The better the question, The better the answer,The better the world works.

Metal &

Minning

Oil &

Gas

Pow

er & U

tilitiesR

eal EstateR

etailTechnology

Telecom

How can transforming electric and gas systems help change communities and people's lifestyles?Our services cover more than just utilities. We'll help you customize your business to make it better with an eye toward designing whole communities.

Sectors

Metal &

Minning

Oil &

Gas

Pow

er & U

tilitiesR

eal EstateR

etailTechnology

Telecom

Power & UtilitiesAs global economies evolve, environmental and resource issues continue to proliferate around the world, resulting in further expansion of business areas related to power and utilities. In addition to the conventional business "industries" such as the electricity and gas systems changing, new "themes" of business are emerging in areas such as energy- saving, smart city grid, water business and venous industries. While these business themes appear to create attractive markets, it is difficult to identify the customers, and major challenges must be overcome to identify business opportunities.Under these circumstances, what steps can a company take to identify market needs to drive growth?At EY Advisory we adopt a unique back-casting methodology that focuses on the destruction and creation of industrial ecosystems to resolve this issue. In cooperation with our EY global network, we support clients in a wide array of industries that wish to achieve growth in business areas of both "industries" and "themes."

Our main Power & Utilities services

Business areas and issues we can supportOur client wants to create a new business to capture the growth of an emerging country but lacks information about the country and faces challenges in verifying customer value, selecting partners and negotiating with government agencies.

Getting beyond the study phase and actually devising and executing plans for capitalizing on market deregulation to enter the electricity business.

Exploring and implementing realistic strategies based on a variety of projections for entering the energy business as a way of contributing to the public good.

Business strategy development

We assist in designing and redeveloping business strategies to continuously secure a competitive advantage. This is done by examining historical cases in the applicable markets and identifying winning patterns that are truly worth repeating, while considering the unique features of the client.

Innovation managementWe support clients engaged in new business planning to create new themes of business using EY Advisory's unique back-casting methodology.

New business developmentWe offer a one-package service to accelerate new business development in emerging countries. Our service includes speedy collection of local information, hypothesis verification of customer value, selection of alliance partners and negotiations with government officials.

Operational strategyWe assist clients in building a consolidated business management system to collect financial information by business segment and region, which helps to make decisions promptly on a global basis.

Research and policy recommendation

We propose energy policies based on market research after electricity and gas system reform and mid- to long-term changes in the industrial structure, as well as provide support in conducting smart city verification experiments in emerging countries.

Supporting entry into the electricity business

Industry deregulation has drawn a multitude of new companies into the electric power retail business. We help clients explore the possibilities of entering this market not just as retailers, but as full-fledged electric companies generating and selling renewable energy.

Examples of Power & Utilities projectsService area Description of main services

Business strategy formulation support

Heavy power clients facing challenges in closing a nuclear power plant deal overseas amid intensifying competition. We analyzed past successful cases, identified a winning pattern worth adopting and supported the client in reconstructing a global strategy to achieve its strategic targets.

Innovation management support

A gas company was exploring new seeds of innovation with a target to capture emerging markets 10 years from now. We supported the company in creating a new theme of business by taking into account mid- to long-term changes in the industrial structure and adopting its unique methodology of performing back-casting from a macro approach.

New business development support

A power company was exploring opportunities in foreign smart grid markets. We collaborated with the EY global network to offer a wide range of services, including negotiating with the government of respective countries, verifying market value, selecting partners, assessing business potential and conducting PMO processes in operation tests.

Research and policy recommendation

The Japanese government has been promoting the formulation of energy-related projects that contribute to reinforcing the competitiveness of the country. We issued a recommendation on the country's competitiveness and the direction of project development from a macro and industrial perspective based on verifications performed with relevant experts.

The better the question, The better the answer,The better the world works.

Metal &

Minning

Oil &

Gas

Pow

er & U

tilitiesR

eal EstateR

etailTechnology

Telecom

Assets, talent, information: which of these is most crucial to creating a market?EY Advisory helps clients execute management strategies that balance these three key elements that comprise the real estate market.

Sectors

Metal &

Minning

Oil &

Gas

Pow

er & U

tilitiesR

eal EstateR

etailTechnology

Telecom

Real Estate

Real Estate Management SolutionConceptual Diagram

AssetsTalent, information

Operation

Buildingmaintenance

Rentalguarantee

Propertymanagement

Planning&Sales

Salesmanagement

Asset management

Total systemManagement

Planning andpevelopment

The real estate industry and market are becoming more diverse and more sophisticated, characterized by expansion to overseas markets, the emergence of new players from other industries, and the creation of new lines of business. The loosening of regulations is leading to ever fiercer competition. In this environment, it is essential for companies to develop service plans that transcend their traditional business models, use flexible and agile data infrastructure to achieve low-cost operations, and focus their internal resources on their core operations.EY Advisory examines clients' missions and strategies from both a business and an IT approach, and provides services that help achieve their strategic management goals.

Our main Real Estate services

Total systemWe help clients devise optimized revenue models at the property life cycle level. We also assist in analyzing and simulating management information from multiple angles.

Planning and developmentWe support improvements to core operations such as planning, site acquisition and execution control. We also help to measure the financial impact that planning and site acquisition have on the company and gauge the long term effect that such planning will have on the company.

Sales managementWe support improvements to core operations such as order control, funds management and customer management. We also support financial aspects of operations such as customer targeting, effective and efficient campaigns, financial forecasting and financial planning.

Asset managementWe help clients build information management infrastructures geared toward comprehensive integration with property managers and administrative agents. We also assist clients in enhancing their budget controls and improving the quality of their investor reporting.

Property managementWe help to formulate measures for increasing the acquisition of properties in trust and strengthening leasing power. We also support the establishment of an operation infrastructure that enables higher operational quality and lower cost operations.

Building maintenanceWe help clients transform into general building management companies, including trust management operations. We also assist in enhancing project cost management and improving the productivity of periodic operations using IoT technology.

Rent guarantee We assist clients in designing rental guarantee products, matching with other lines of business, and improving their balance sheets.

Business areas and issues we can support

Overcoming constraints to quickly plan, launch, and expand new businesses in new overseas markets.

Reducing dependence on individuals and centralizing information management to enable low-cost operations and timely, accurate, and high-quality reporting.

Getting an accurate picture of current challenges toward enhancing sales and promptly taking action to address them, including sales training and rethinking promotion strategies.

The better the question, The better the answer,The better the world works.

Metal &

Minning

Oil &

Gas

Pow

er & U

tilitiesR

eal EstateR

etailTechnology

Telecom

Consumer needs are becoming more sophisticated every day. How are you responding?We provide tailored methodologies and cutting-edge technologies (e.g., big data, AI, VR) for your marketing and supply chain needs, helping you improve customer satisfaction.

Sectors

Metal &

Minning

Oil &

Gas

Pow

er & U

tilitiesR

eal EstateR

etailTechnology

Telecom

Our main Retail services

Examples of Retail projectsService area Description of main services

Business model restructuring support for omni-channel distributors

Help to redesign a business model in line with an increasing penetration of omni-channel usage in consumer behavior and redesign a retail sales system.

Support for hypothesis verification MD using ID-POS data analysis

Assisting in conducting a feasibility study before an ID-POS analysis system is installed, or with tool selection, implementation, and Business Process Outsourcing operation in major retailers.

Support from logistics strategy planning through to implementation

Helping a major food wholesaler with strategic planning, process design and contractor selection for reorganizing the distribution base.

Support for inventory reduction and order streamlining

Assist a major mail-order company, in improving forecasting accuracy and in adjusting inventory levels by installing ARBI*, EY Advisory's unique demand prediction and inventory level model.*Arrival Rate Based Inventory

The consumer environment is changing rapidly. Japan's low birthrate, aging and shrinking population, and the consumption tax increase are dampening the consumer climate, while the spread of smartphones and social media have significantly altered consumer behavior. All this has created a dizzying array of challenges for distributors. Surviving in this new environment requires a strategic approach that anticipates change rather than clinging to existing business structures and partnerships.With a range of services from strategic planning to process design and field deployment, EY Advisory's retail and distribution sector provides effective solutions that enable clients in the consumer goods and distribution industries to respond flexibly to market changes and increase profits.

Retail

SCM model reconstruction for omni-channel operation

Assuming the potential for an omni-channel operation, we support in reassessing the existing distribution network and creating hubs and networks necessary for maintaining an appropriate service level against the cost structure.

EC model design and installation support as part of the omni-channel strategy

We assist in designing and implementing an EC model, which will be a major part of the omni-channel strategy, to improve customer experience and achieve an optimal overall structure that also includes other channels.

ID-POS data analysis introduction and operational support to support greater transparency and efficiency

Our Business Process Outsourcing ("BPO") services support the redesign, establishment, and running of a hypothesis verification function centered on data analysis, so accumulated customer purchase data (ID-POS data) can be utilized in marketing and merchandizing operations.

Logistics cost optimizing supportIn an era of rapidly rising logistics costs for warehousing, processing and transport caused by drastic changes in the logistics environment, we support in redeveloping processes for the entire company to optimize the levels of logistics costs and services.

Inventory adjustment tool introduction and operational support

We can support in the planning, development and operations of a demand prediction model and inventory optimization solution to address the various problems that occur due to inaccurate demand forecasts or inadequate inventory models.

Business areas and issues we can supportOur client wants to rejuvenate its stores and increase customer satisfaction levels through the utilization of big data and by restructuring their marketing and merchandizing operations.

Our client wants to analyze and utilize the purchasing data and social data of their retail partners to increase the success rate of their new products.

In line with changes in consumer behavior and changes in the economic environment due to labor shortages, we help redefine the client's policy towards omni-channel operations and review the balance between service level and cost.

Our client wants to improve orders and inventory control by forecasting store demand, thus increasing customer satisfaction levels while simultaneously improving the efficiency of their funding operations.

As a measure to respond rapidly to rising store operating cost and distribution costs caused by a lack of workers, our client wants to review their balance between cost and service levels.

The better the question, The better the answer,The better the world works.

Metal &

Minning

Oil &

Gas

Pow

er & U

tilitiesR

eal EstateR

etailTechnology

Telecom

What can you do to turn your competitive strengths (technology) into market advantages? The advent of digital infrastructure is bringing ideas that once seemed too difficult or costly into the realm of possibility. We can help you create and implement these types of ideas to get the most out of the sources of your competitive strengths.

Sectors

Metal &

Minning

Oil &

Gas

Pow

er & U

tilitiesR

eal EstateR

etailTechnology

Telecom

Our main Technology services

Examples of Technology projectsService area Description of main services

Digital transformation, from planning to introduction

① Help plan and implement supply chain improvements geared toward visualizing global sales, inventory, and factory operations based on IoT applicability assessments and data analysis

② Help enhance manufacturing process quality control through cross-validation of QA department data with process data

Improving global supply chains

① Help rebuild and establish a full range of operations and systems, from R&D and customer relationship management to production and delivery, for individual option production in the final process to better respond to increasingly fragmented customer demands

② Support integrated PMO for operations, systems, legal and tax functions, and personnel in connection with transfer of production sites to China and ASEAN

Rebuilding global management infrastructure

① Organize KPI systems by business area and product group and define management schemes (global integration of ROIC/sales ROIC and operations indicators)　

With AI, IoT, IE4 (Industry 4.0), and big data analytics becoming more advanced and more commonplace, the need for companies to create new multi-industry, technology-driven businesses and qualitatively transform their operations is greater than ever. EY Advisory offers not only a global knowledge base in the field of digital transformation, but experience refining and redefining the only-in-Japan competitive strengths of numerous clients. Our services leverage this insight to help clients achieve new growth and new levels of excellence. Meanwhile, manufacturers face an immediate need to reinforce their global revenue structure to cope with the plateauing Japanese economy and shifts in production to lower-cost regions. In this context, digital transformation is an effective way to improve profitability and expand sales revenues, revise production and procurement hub strategies, enhance sourcing, and visualize global prices. We offer a full range of digital transformation services, from strategy planning to rebuilding and establishing operational processes, systems, and organizations.

Technology

Digital transformation, from planning to introduction

Helping plan and roll out more practical, concrete digital transformation using specific, relevant case studies* from our experience(* Relevant case studies from 22 technology fields and 28 manufacturing fields)・Transformation strategy planning　 (Defining competitive strengths, formulating business plans, devising

action plans)・Diagnosing implementation and training staff for big data analytics・Evaluating application infrastructure (compatibility with relevant

platforms)・Diagnosing digital readiness, diagnosing/building digital security, etc.

Improving global sales management

・Visualizing sales and administrative expenses of optimal price setting to improve global profitability・Establishing compliance measures to avoid risks・Helping ensure early adoption of practical global sales management

based on country market conditions and clients' resources and partnerships

Expanding global service revenue・Rebuilding service businesses to transition them from products to profit・Helping lower costs, rebuild service models, and expand sales through

digital transformation

Improving global supply chains

・Devising hub strategies (plans to reposition/transfer global production hubs, etc.)・Improving sourcing (procurement), logistics (sales, production,

procurement), global cost management・Introduction of IoT/IE4.0-enabled production methods, etc.

Rebuilding global management infrastructure

・Systematizing KPIs at every level of the organization and examining required data to achieve management targets・Conceptualizing effective management information management and

building operational and system infrastructure

Business areas and issues we can support

Devising strategies and concrete measures to further enhance and develop clients' competitive strengths, such as data assets.

Streamlining supply chains and operations to translate business globalization into higher revenues and thus maximize profits.

Centralizing management information and distinguishing what is truly needed from what is not to enable more rapid management decision-making and maximize the effectiveness of global management.

The better the question, The better the answer,The better the world works.

Metal &

Minning

Oil &

Gas

Pow

er & U

tilitiesR

eal EstateR

etailTechnology

Telecom

Is your business staying ahead of the technology curve?We can help you leverage the latest technologies to transform your business environment.

Sectors

Metal &

Minning

Oil &

Gas

Pow

er & U

tilitiesR

eal EstateR

etailTechnology

Telecom

Our main Telecom services

Examples of Telecom projectsService area Description of main services

Creating new AI- and IoT-enabled businesses

Help launch new AI- and IoT-enabled services through the following steps:・Define user personas for envisioned services・Define journey map for each persona・Define technology enablers for implementation・Define KPIs for business built on services・Formulate action plan to accompany KPIs

Improving global supply chains

Perform cybersecurity assessments using EY's proprietary framework.Use results to help plan, build, and implement measures to address weaknesses. Help enhance organizational, process, and technology security by building monitoring process and providing monitoring support during implementation stage.

Rebuilding global management infrastructure

Integrating IT systems of acquired companies:Help plan and implement IT systems integration by studying acquired company's business processes, IT functions, and skill sets to enable quick and efficient integration and allow client to immediately enjoy benefits of acquisition.

With the fixed-line and mobile communications markets becoming saturated, telecom companies need to find ways to further reduce their costs while expanding new service businesses. Equipment and procurement are expected to be the most effective areas for cost savings. The spread of digital businesses, meanwhile, has spawned a need for a diverse array of support services that use new technologies to link different sectors together.EY Advisory provides comprehensive services designed to maximize the benefits from these transformation efforts. Our experts bring extensive experience and a track record of success in the telecom business and related fields to help clients devise strategies and rebuild their operational processes and systems.

Telecom

Supporting launch of new businesses utilizing AI- and IoT

When companies launch new businesses and projects in areas where they have no prior experience, a “prototype approach” is often the most effective way to achieve quick results. We help clients apply this approach to their new businesses, with a special focus on new technologies such as AI and IoT.

Data analytics-based aggressive initiatives

We help clients devise data analytics-based aggressive initiatives to prevent customer attrition and predict network faults. These plans are powered by analysis of extensive historical data, including behavior patterns of users considering cancelling their subscriptions and factors associated with past network faults.

Enhancing cost competitiveness in indirect materials purchasing

We help clients explore and implement measures to enhance their cost competitiveness in indirect materials purchasing. Our services include analysis of indirect material cost factors and impact of improvements and visualization of the purchasing process and forecasts vs. results. We also support clients in building shared services centers, from conceptualization to implementation process design.

Cybersecurity assessments

The spread of digital technology and the resulting deeper ties between telecoms and other sectors means greater vulnerability to becoming the victim of a cyber attack. EY Advisory has performed cybersecurity assessments for numerous clients worldwide. We draw on that knowledge and experience to help clients design and build governance systems and processes.

IT program and project management support

IT projects in the telecom industry are frequently large and complex, and this often makes managing them extremely difficult in terms of cost, quality, schedule, and achieving initial goals. EY brings extensive knowledge and experience in helping clients manage complex, large-scale projects as well as programs comprising multiple projects.

Business areas and issues we can supportCreating new business ideas and devising and implementing business plans that leverage new technologies like big data, AI, and IoT to get the most out of telecom infrastructure.

Using historical data to predict patterns in user subscription cancellation and explore and implement appropriate measures to minimize user attrition.

Achieving reductions in purchasing costs to further optimize operations and enhance cost competitiveness.

Our main Global Business Support services

Today's business environment demands business expansion on a global scale and synergy with overseas affiliates and partners. Companies need to implement management that brings the entire group into perspective. EY Advisory leverages the shared knowledge, methods, and service frameworks of EY's global network to help Japanese companies effectively expand their businesses globally. We also provide services to help foreign companies expand their business into the unique Japanese market.

Global Business Support

Supporting expansion into new global markets

We support Japanese companies to expand into overseas markets with business climate analysis, market surveys, strategy planning and implementation.

Enhancing regional management

We support clients to optimize their regional management function across all operational layers (policies/regulations, processes, KPIs), organization layers (structures), and resource layers (data, human resources, IT systems). EY's exclusive framework enables clients to tailor their regional management to local business climates.

Building global supply chains:Operating Model Effectiveness*

The expansion of markets in emerging countries and changes in consumer behavior demand transformation of value chains to suit the new business environment. We help clients respond to their end- customers' needs by reexamining the value they provide to customers (products and services) and optimizing their operations from a supply chain perspective as well as a tax perspective.* Operating Model Effectiveness (OME): EY's framework for supply chain management/tax optimization. This service may be provided in collaboration with Ernst & Young Tax Co. and EY's global tax services team.

Global shared services

Shared services centers transform its function from simple service providers into business partners and help multinational companies shift toward consolidation on a more global level. EY Advisory uses its global knowledge base to help clients enhance their shared services architecture.

Global ITGlobal enterprises comprising of multiple group companies and hubs are expected to leverage their intragroup links to optimize and improve their operations. We help our global clients quickly build effective IT platforms to support their business processes and operations.

Supporting global programs

The ability to manage programs while balancing global and local governance and coordinating increasingly complex stakeholder interests is a key requirement for achieving business transformation at the global level. We support clients to set up and execute effective program management using EY's global program management framework.

Supporting global initiatives in Japan (services for foreign companies)

Foreign companies looking to implement global initiatives in Japan need to understand potential gaps between their head office's vision, strategy, and processes, and the unique requirements in the Japan business. With expertise from a variety of industries and sectors, our team of multilingual professionals helps foreign clients achieve quick and precise communication and project management in their Japan-based endeavors. In addition, we provide solutions using support from EY's global network to ensure a seamless fusion between clients' global policies and Japan local needs.

Business areas and issues we can supportAnalyzing business and market environments of targeted locations for expanding products and services overseas; reviewing the pace of overseas growth and priorities of overseas businesses to rebuild and enhance overseas hub management.

Improving speed and efficiency in analysis and provision of business management data to enable better decision making; ensuring appropriate management and monitoring of external contractors as usage of contractors in overseas operations increases.

Consolidating, standardizing and streamlining affiliates' operations as part of global expansion while ensuring governance over operational processes; quickly and effectively rolling out IT systems to support those efforts.

Launching global programs to improve efficiency in managing group companies worldwide through operational transformation.

Our global network

JBS※ network

People by Area

※ EY's Japan Business Services (JBS) is a global network of more than 500 bilingual professionals (including 105 expatriates from Japan) in over 50 major cities around the world, dedicated to supporting the global expansion of Japanese companies through a diverse range of services in the areas of assurance, tax, advisory and transaction.

65,457 People

As of June 2015

36,116 People

7,701 People

102,176 People

Japan Area

EMEIA Area

APAC Area

Americas Area

AmericasArgentinaBrazilCanadaChileMexicoPeruUSA

APACAustraliaCambodiaChinaGuamIndonesiaMalaysiaMyanmarNew ZealandNorthern Mariana IslandsPhilippinesSingaporeSouth KoreaSri LankaTaiwanThailandVietnam

EMEIABelgiumCyprusCzech RepublicDenmarkEgyptFinlandFranceGermanyHungaryIndiaItalyKazakhstanLuxembourgNetherlandsNorwayPolandPortugalRomaniaRussiaSouth AfricaSpainSwedenSwitzerlandTunisiaTurkeyUnited Arab EmiratesUnited Kingdom

Outline Name of organization Ernst & Young Advisory Co., Ltd.

Business details ▶ Management consulting・Management diagnosis・Strategy planning・Alliances

▶ Business process consulting・Operational improvement・Organizational improvement

▶ IT consulting・IT strategy・Project planning

Established 1 November 2010

Paid-in capital 450 million Japanese yen

Representative Setsuo KatoChairman ,President and representative director

Address Head office: Kasumigaseki Building, 29F, 3-2-5 Kasumigaseki, Chiyoda-ku, Tokyo, JapanTel: +81 3 3503 1490 (main number)Fax: +81 3 3503 2818

URL www.eyadvisory.co.jp

As of Jun 2016

EY | Assurance | Tax | Transactions | Advisory

About EYEY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.

About Ernst & Young Advisory Co., Ltd.Ernst & Young Advisory is an EY member firm. Always present at the front line of business change, our advisors use their expertise and a global cooperative network so that they can provide a wide range of clients with advisory services to enhance their businesses. In this way, we contribute to building a better working world.For more details, go to www.eyadvisory.co.jp.

© 2016 Ernst & Young Advisory LLC. All Rights Reserved.

This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice.

2016.06.21