The Industrial Translation Market in Japan
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1 The Industrial Translation Market in Japan HONYAKU Center Inc. Ikuo Higashi, President August 2008 Copyright 2008 HONYAKU Center Inc. All Rights Reserved.
2 The Industrial Translation Market in Japan(1) Market Environment Overview 1 Macro Environment (1) In 2007, international technology trade in Japan was valued at approximately 3.08 trillion yen (2) The trend toward investing in R&D to enhance international competitiveness remains strong. (3) The importance of intellectual property strategies in domestic business operations continues to rise. 2 Industrial Translation Market (1) The industrial translation market in Japan is estimated to have been worth around 200 billion yen in (2) There are approximately 2000 translation companies, comprised largely of small-scale scale entrepreneurs. (3) There are some 30,000 freelance translators in Japan. Copyright 2008 HONYAKU Center Inc. All Rights Reserved. 2
3 The Industrial Translation Market in Japan (2) Number of translation companies according to sales (Unit: Yen) Over 2 billion billion (N=124) billion million - 1 billion million million million million million Under 10 million (%) Source:Japan Translation Federation Translation White Paper 2005 Copyright 2008 HONYAKU Center Inc. All Rights Reserved. 3
4 The Industrial Translation Market in Japan (3) Sales ratio by field Sales ratio by language Publishing 2% Media 1 % Other 3% French 4% Korean 5% Spanish 1% Other 4% Life Sciences 10% Financial / Legal 10% IT / Computers 30% German 6% Chinese 7% Patent 21% Science / Industrial technology 23% English 73% Source:Japan Translation Federation Translation White Paper 2005 Copyright 2008 HONYAKU Center Inc. patent All Rights Reserved. 4
5 HONYAKU Center Overview Company Name: Head Office: Honyaku Center Inc. Osaka, Japan. Established: April 1986 Business Operation: Translation services Paid-in Capital: 399,536,000 yen (31 st st March 2008) Net sales: 4,383,092,000 yen (fiscal 2007) Locations: Osaka, Tokyo, Nagoya, San Francisco, Beijing Affiliated Companies: International Document Center Co., Ltd. HC Language Solutions Inc. Employees: 193 (31 st st March 2008) Copyright 2008 HONYAKU Center Inc. All Rights Reserved. 5
6 Actual Performance for year ending March 2008 Consolidated results Nets sales by field / Order volume Unit: Thousand yen Unit: Thousand yen, orders Year ending March 2008 Net sales % ratio Orders % ratio Net Sales 4,383,092 Patent 1,600, , Operating Income 403,281 Medical 1,297, , Ordinary Income 407,224 Industry 968, , Net Income 205,163 Financial 444, , Other 72, Total 4,383, , ,0 Copyright 2008 HONYAKU Center Inc. All Rights Reserved. 6
7 Business Model / Core Concept 4 Main divisions 3 Value points Patent Medical Industry Financial Quality Speed Price 2 Management resources Registered Translators (Over 3, st March 2008) Resource Management System (SOLA) Improved market share Improved profit earning power Our goal is to create the de facto standard for the translation industry in Japan! Copyright 2008 HONYAKU Center Inc. All Rights Reserved. 7
8 Industrial scale Translation Platform < Service Workflow > Estimate Order Translator Selection Specialty field, qualifications trial translation result, translation speed, schedule, translation performance,order unit price Employment of SOLA database. Specialist Coordinators respond and handle projects. Matching the appropriate translator for the project. Translation Quality control DTP, finishing Translation checks by project coordinator, native-speaker of target language, specialist in the given field. Delivery Follow up after delivery to confirm translation quality. Feedback is applied ensure quality is maintained and standards are continually raised. Copyright 2008 HONYAKU Center Inc. All Rights Reserved. 8
9 HONYAKU Center s s direction Offer valueadded solutions We aim to set the de facto standard for the industrial translation industry! Enhance recognition of professional industrial translators and the industry as a whole Improve growth and profitability Increase HONYAKU Center s corporate value Support client s corporate value and competitiveness Contribute to international economic and cultural exchange through industrial technology translation. Copyright 2008 HONYAKU Center Inc. All Rights Reserved. 9
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