Action Plan under Recovery Assistance Project in 2013

In addition to the six sites that we continued to invest in from 2012, we provided investment assistance to five new locations in 2013.
After selecting advisors to oversee each site, we provided financial and management-related advice.
The status of each investment site is as follows:

(1)

Sanriku Iriya Suisan:
Sanriku Iriya Suisan has been contributing to the local economy by using locally produced goods and collaborating with local businesses to develop proprietary products. The company is currently building a new factory and plans to hire more employees. This is how Sanriku Iriya Suisan is contributing to the community.

(2)

El Faro (Onagawa-Cho Shukuhaku-Mura Kyodo Kumiai):
The El Faro Hotel provides accommodations for tourists and people involved in reconstruction projects. In the future, it will help to revitalize the economy and provide jobs in the town of quake-hit town of Onagawa by collaborating with the local tourist industry and companies that make marine products.

(3)

Onagawa Factory:
The Onagawa Factory is contributing to economic self-reliance in the wake of the Great East Japan Earthquake by manufacturing fish-shaped woodwork products, which used to be a core industry in Onagawa. It is developing new products by using different equipment.

(4)

Tatakiage Japan (Incorporated NPO):
Tatakiage Japan helps entrepreneurs involved in reconstruction efforts in Fukushima. It runs a shared office to facilitate cooperation between entrepreneurs. It also hosts seminars for entrepreneurs and provides other venues for similarly minded people to work closely together. Tatakiage Japan is trying to become a positive forum for reconstruction.

(5)

Town of Rebirth Project:
The Town of Rebirth Project is helping local business operators to work with revitalized businesses that were afflicted by the Great East Japan Earthquake by developing renewable energy projects. Electric power generated by solar panels has been donated to companies to contribute to post-disaster reconstruction. The Town of Rebirth Project will also promote industrial revitalization and promote renewable energy.

Future Plans

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Ongoing implementation of capital assistance
Tohoku Relationship Capitals will continue to provide capital assistance to reconstruction-focused enterprises and organizations that are interested in new markets.

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Ongoing enhancement of value for existing sites of assistance
Tohoku Relationship Capitals will continue to assist in the value enhancement of its eleven sites of capital assistance. If necessary, it will use its network of advisors to strengthen support frameworks and otherwise carry out additional measures.

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Commencement of management of existing sites of assistance by sharing social investment management indicators (KPI)
Tohoku Relationship Capitals will establish KPI other than income and expenditures (local employment figures, local product usage statistics, etc.) for each investment, and will start by verifying outcomes. Afterwards, it will continue to manage those investments using proper KPI.

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Commencing partial reimbursement from existing sites of assistance
A significant number of aid sites are not expected to reimburse Tohoku Relationship Capitals in the three years after assistance is offered. Tohoku Relationship Capitals will start requesting partial reimbursement after taking the status of each site into consideration.

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Examination of lateral deployment of a common-benefit investment fund scheme
Tohoku Relationship Capitals will verify its efforts and investments. If it determines that they have been effective, it will look for ways to help other organizations, including local governments.

Determination

We believe the capital assistance efforts based on the philosophy of common-benefit investment that we set out to implement from the beginning have been successful. We'll try to implement our second wave of capital assistance by enhancing the value of existing aid sites. In doing so, we intend to continue our support of reconstruction endeavors. Additionally, by reviewing investments and sharing those results with other parties, we will develop a funding model and expand the social impact of capital assistance efforts in the future.