Quarterly Survey of Overseas Subsidiaries

Turnover inside/outside Japan and domestic sales/local sales overseas

• Sales of domestic parent companies totaled 39 trillion and 139.5 billion yen, down by 5.4% compared to the same period of the previous year. In light of business categories, sales decreased in all industrial classifications, especially in electrical machinery and chemical industries. On the other hand, sales of overseas subsidiaries totaled 8 trillion and 979.4 billion yen, up by 6.7% compared to the same period of the previous year. From a regional point of view, sales in North America largely contributed to the increase, while sales in ASEAN 4 and NIES 3 have been decreasing since the previous period. In light of business categories, sales increased in twelve industrial classifications excluding metal industry.
  
  In light of comparison of DI between the current and previous period regarding the sales outlook for October 1998-March 1999, the DI was 11.1 points up from the previous period (from -22.7 to -11.6). The percentage of companies that project a sales decline went down in nine industries. Especially in the transport machinery industry that accounts for a quarter of total sales, the DI turned into positive for the first time in five periods. It was also for the first time in five periods that the DI concerning domestic parent companies went up from the previous period. In regard to overseas subsidiaries in all areas, however, the DI was 5.1 points down (from 17.2 to 12.1) meaning that the percentage of overseas subsidiaries forecasting a sales increase is decreasing. From regional angles, the DI was up from the previous period in North America and Europe by 4.2 points (from 19.7 to 23.9) and 1.7 points (from 22.4 to 24.1) respectively, meaning that the percentage of overseas subsidiaries forecasting a sales increase is increasing in those regions.
• Local sales of overseas subsidiaries in all regions (see note 2) totaled 5 trillion and 245.1 billion yen, up by 7.9% compared to the same period of the previous year. The sales increased in all regions except ASEAN 4 and NIES 3.
  
  In light of comparison of DI concerning local sales between the current and previous period, the DI in October 1998-March 1999 was 3.5 points down from the previous period (from 16.5 to 13.0) meaning that the percentage of overseas subsidiaries forecasting a sales increase is decreasing. In light of regions, the percentage of overseas subsidiaries that project a sales increase went down in all regions except North America where the DI was 2.0 points up from 21.3 to 23.3 and Europe where the DI was 2.8 points up from 24.8 to 27.6.
• The percentage of overseas production (see note 3) was 22.9%, up by 2.6 points from the same period of the previous year.