TRC

Jun., 2001

June Report

Mr.Susumu Hani
Mr. Hiroshi Mikitani
Mr.Kinya Takahashi
Mr.Hideki Amano
Mr.Megumi Ide
Mr.Nobutada Saji

**Motion Picture director Susumu Hani spoke at the meeting of June 6 on lions:(2001.6.6)

In Africa, carnivorous animals must eat herbivorous ones, so death is everywhere. In spite of this, animals seems to be so happy, but why? Those who believe that it is due to animals being ignorant are wrong, and I do not think that humans use their intellect as much as lions or cheetahs.
About 15 years ago, I witnessed a dramatic happening when a group of 30 lions fought some 20 water buffalos. I had been taking pictures of the lions for about a week, and during that time they had been unable to find an animal to kill.
Lions do not eat three times a day, and feed once in 3 days. About ten of the lions were not fully mature and did not have the power or skill to catch their feed. These young lions began to lose weight and tried to obtain mother∏s milk from the lionesses who were unable to provide, and I felt that they were soon going to starve. Later that day the 30 lions gathered under a tree on a hill and started to lick each other. This continued for 3 hours after which they started to walk in double file and in step. About half way down the hill there was a pond and that is where the water buffalos were, and I felt that the lions were going to attack them.
But the buffalos were unperturbed as there some ten elephants with them. Lions run away when they see elephants with their children, as they are the strongest of animals.
The lions halted their march, but one who was apparently their leader kept on approaching them. When it was some 30 meters away, the buffalos faced it, pointing their horns as a warning. When all the buffalos had faced them the entire group of lions launched their attack. This surprised the elephants, but undaunted, the lions kept up their attack. The lions attacked from the rear but the thick hide of the buffalo gave sufficient protection so that the lions fangs and claws kept slipping off.
When a lion fell into the pond a buffalo would aim its horns for the kill, but then the smaller lions would get together to attack the buffalo∏s legs and tail and flee when the buffalo faced them. This kept on for some time - when I reran the tape I took I found it took 17 minutes. Then breaking the silent battle, a buffalo cried out as if lamenting its death.
Then a large entered the pool, and lied down in the water, exposing itself to the buffalo. The buffalo lowered its horns and started to approach the lion, but at the last minute the lion jumped and bit through the buffalo∏s neck. The buffalo, which must have weighed at least a ton stopped in its tracks. The lion threw the buffalo as if he was a judo athlete. Then the smaller lions crowded around the carcass to feast, and the killer lion went after the buffalo∏s stomach for his meal. Then, the leader lion came running and slapped the killer lion∏s face which made him stop eating. This was to allow the weak - the young and the females the first ones to be allowed to eat. I have witnessed many lions eating but never has it been done in so orderly a manner.
I returned to the scene the next day and found the lions all sleeping with their stomachs upturned. There were 40 to 50 vultures who also seemed to have stuffed themselves as they did not fly away when we approached.
All that remained of the buffalo was the skeleton, as smaller animals had cleaned the bones of any meat.
The buffalo expired, but its life was now shared by many, and I felt that there was a different meaning to life and death than which we normally experience, amidst wild nature.

**Mr. Hiroshi Mikitani, President of the Rakuten Co., Ltd. spoke at the meeting of June 13 on the Internet business model for the 21st Century:(2001.6.13)

We are conducting two types of Internet business – one is the Internet Mall, and the other is Infoseek, or providing information.
We started our services in May 1997 but for a while we could get no one to do business with us. Many people pointed out that Internet business would never become popular, but we felt that the Internet would grow explosively.
Today, this is taken for granted, but 2 or 3 years ago people were saying that the Internet would not be popular in Japan as our people were not used to the keyboard.
Today, it is said that there are 35 million Internet users in Japan including those which use cell phones.
Especially, recently there are not only persons who use personal computers for Internet, but also cell phones and broadband services. It is forecast that by the year 2005, there will be 70 million Internet users in Japan.
The scope of e-commerce, or electronic commercial transactions was 82.4 billion yen in 2000 and is expected to 13 trillion yen by 2005. The direct mail market today is 2 trillion yen, so the consumer e-commerce market will be 6.5 times its size.
The B to B market, or from firm to firm will reach 110 trillion yen also by 2005.
Included will be real estate, financial instruments, automobiles, but not consumer goods.
We started in February, 1997 and have always believed that the Internet business must be as broad as possible, and have started many new services. Today we have 7,000 shops selling 820,000 different articles and sales are increasing from 15 to 20% a month.
Basically, there are 3 Internet business models; 1) is XSP. This X stands for anything, SP is for service provider, and the point is that we provide application as a service. In other words we do not sell software, but provide the use of software by Internet. By using our server, you can open a shop for 50,000 yen a month.
2) is the marketplace, or matching service, bringing the seller and buyer together.
3) The Internet as media. In the future, all the firms in the Internet business may come to resemble each other. If one were to publish a newspaper by Internet there will be a choice of making profits through advertising, or to function by direct mailing, or to obtain royalties through sales.
Our Internet business starts by opening a home page, and we also function by analyzing the market and future sales possibilities or merchandise. We are also a communication tool and participate in auctions. Shopping by cell phones, and joint shopping, with all these services provided at 50,000 yen a month.
We have started B to B matching, by introducing those who can help them to parties wishing to open home pages.
We have also opened a bookstore, and a travel site. Travel set for a definite date becomes cheaper as the time limit approaches, and such articles are suited for Internet sales.
Internet stocks have fallen in the United States, and the Japanese shares have followed.
It is becoming difficult for Internet related firms to sell their shares on the market, so I think that it is timely for us to purchase promising enterprises.
We do not merely encourage entering the Internet market, but provide consulting services to educate, and also maintain a team of female shopping advisors.
This is a tough business as I believe we must release a new service once a week.
In the future, it will become possible to engage in Internet shopping by use of your home TV set.
We have changed the concept of shopping as we do not function as a direct mail channel, but allow face to face shopping, and perform not as an Internet catalogue but as an Internet shop. There are shops run by two persons who sell from \50,000,000 to a \100,000,000 a month.
We have published a book giving the know-how on this business titled ∑Direct from Rakuten-Ichiba, 60 Secrets of Successful Business∏. If you are interested, please read it.

**Initiation Speeches (2001.6.20)

Two initiation speeches were given at the meeting of June 20.

*The first to speak was President Kinya Takahashi of Japan Amenity Travel Ltd. who spoke on the current trends in Japanese overseas travel:

I wish to explain the current situation on Japanese overseas travel based on data obtained from the Japan International Travel Council and the Law Ministry.
Last year, 17,820,000 Japanese went abroad, an increase of 8.8% over 1999. Of these, 14,580,000 were tourists, an increase of 8.4%. For all purposes, Japanese overseas travelers set a new record in 2000. With the computer scare in January, there was a 1.3% decrease over 1999, but from there on the number increased every month, with August recording a new high of 1,760,000 departures, of which 1,470,000 were tourists.
A total of 4,750,000 foreigners visited Japan in 2000, of which 2,690,000 were tourists.
The total figure was an increase of 7.2% over 1999 and set a new record.
In looking at our outbound figures since it was permitted in 1964 when a total of only 130,000 Japanese went overseas with only 20,000 tourists, by 1972 the number exceeded one million. In 1976 this number reached 5 million, and more than 10 million in 1990.
Regarding destinations, the first choices are countries in Asia followed by North America, Europe, Oceania and Africa. In Asia, especially large numbers of Japanese visit Korea and China. Of the 14,580,000 Japanese who went abroad last year, 7,420,000 were males and 716 million were females with males having an edge of 260,000.
In age brackets, those between the ages of 20 and 50 comprised 76.6% with those over 60 coming to 14.3 %.
What do the Japanese travel for? For those in their twenties, it is for shopping, a gourmet experience, and relaxing on the beach. For those in their thirties and forties it is getting away from daily stresses, and for those over 50 it is to enjoy nature, historical spots and objects to satisfy the mind.
There are 11,000 travel agents in Japan. According to available date, the total sales of Grade I to Grade III travel agencies which number 8,200 companies was about 8.2 trillion yen two years ago, of which 2.9 trillion was for overseas travel. As prices come down, travel agents are now engaged in fierce competition to survive.
Finally, the Tourism White Paper for 2000 states that in the 21st Century we should be able to enjoy a life richer in leisure, and that it will be a time when there will be a greater change of people. Thus the role on international travel will increase and it is our responsibility to seriously consider how we may realize these objectives together with you.

*The second speaker was Arthur Andersen Partner Hideki Amano, who spoke on the issues raised by the accounting Big Bang:

Modern accounting got its start some 500 years ago when a Franciscan friar in Italy devised double entry bookkeeping. It was used to report investment results to absentee owners of land. Because of its simplicity and clarity it has been used for 500 years and as proof of this until the end of the 1970∏s the stockholders∏ capital on the balance sheets of the listed companies on the stock exchange was close to 100% of the total share value. But this ratio declined in the 1980∏s and by 1999 it was only 25%.
Why did this happen? The bulk of the capital shown on the balance sheet is made up of land and money capital, but for today∏s management what is more important are 1) customers or clients, 2) patents and technical capital, 3) top leadership, management systems, brand, etc. Furthermore, the investor∏s expectations can affect the share prices. A high price share reflects the investor∏s anticipations and makes it fluctuate.
Accounting systems hitherto been made to correctly ascertain profit and loss from a management standpoint, but today they are used to gauge a firm∏s value for the investor. It is to show a firm∏s current value which will be the starting point for a cash flow.
Every now and then I hear the question ∪Why should we in Japan modify our accounting procedures to meet global standards?∩ It is because the business environment is so swiftly changing that issues should not be solved piecemeal over a period of years.
Secondly, investors are desiring that we do so. Investors in Japan and abroad are interested in attractive firms. In order to activate our economy, foreign investment is needed.
The third reason is that whether we understand it or not, the Japanese economy and its firms have a strong impact on the world economy. If the Japanese persist on running its affairs accounting to our own rules, foreign investors will be unable to obtain correct financial information, thus having a minus effect on our economy.
Thus the accounting Big Bang has different backgrounds and issues. I am sorry to have to give you such a technical talk, but thought it was important for me to speak on it as this matter will affect the Japanese economy quite strongly in the future.

**The meeting of June 27 was the final one for the current Rotary year, and outgoing President Megumi Ide addressed the audience:(2001.6.27)

A little before a year ago when I was to become President of this club, I gave some thought to what was the attraction of this club. I felt that it was actually our regular weekly meetings and therefore thought must be given to what would make our meetings more energetic and attractive.
To put it in a few words, it would be – ∑meeting friends∏, ∑eating good food∏ and ∑to listen to interest talks∏.
First of all, friends. Not only old friends but to meet new one and converse with them. This is wonderful thing. We have 350 members and some members are unknown to ourselves, I am sure. We should try to remedy this failing, as it is our loss.
That is why I called for our table gatherings. Thanks to the efforts of our table masters and their assistants these were held every three months and were well attended, extending our circles of friendship.
Next, the food. At our recent club forum opinions were voiced as to its taste and price at which our Mr. Jiro Yanase stated that men should not dither about food, and this was received with applause. But I hope the hotel staff will not relax their efforts and work together with our Food Committee to improve matters.
Our table speeches range in variety. We learned that we could live to be a 100, and that male lions are sagacious. I thank all those who made initiation speeches, and those who favored us with talks.
Our main event this year was the celebration of our 80th Anniversary. A dinner was held last October 18 with many distinguished guests attending. We reaffirmed our support for land mine removal, and published an anniversary booklet.
Throughout the year, I have felt that the sprit of Rotary can be summed up in our song ∑Te-ni-te o tsunaide∏ (Hand in hand). We invite Ambassadors of foreign countries to our meeting and sing this song, which seems to impress them. Hand in hand we enlarge our circle of friends, and this is a wonderful things.
Please forgive me for passing on to my successor a number of unresolved issues, and I wish to than Club Secretary Saji, our Board, Committee members, office staff and hotel employees. Above all I am grateful to our members to which I say thank you very much.

**President Ide was followed by Club Secretary Saji:(2001.6.27)

I have served as Club Secretary for a year, fortunately without event. Under the able leadership of President Ide, our Vice President and Board, my assistant secretaries and the support of our office staff and above all our members this was made possible for which I thank you.
I became assistant to club Secretary Nakamura 2 years ago, but I felt that time indeed flies during this period.
Our 80th Anniversary was celebrated on Oct. 18 but this happened to coincide with the Kyoto Rotary Club∏s 75th, so I hurriedly made a trip and returned the same day in order to be present at our own. Many clubs celebrated their anniversaries, but we received favorable comments that ours was the most simple and gratifying. I thank Anniversary Committee Chairman Rotarian Uyeda and all those responsible for this success. I feel that this was due to our basic strengths, and the spirit which we have upheld to be the best in every endeavor.
Reflecting upon our year, President Ide∏s policy of strengthening fellowship among our members was carried out by reviving our table gatherings. Under the leadership of Fellowship Committee Chairman Noguchi, 22 of them were held during our year, with those participating appreciative of the informal nature of these meetings.
The 2 Club Forums we held were also well attended. They are a forum to explore club policies, and I realized that they were important in exchanging candid views on our operations. For those of you who have not attended, I hope you will take the next chance to do so and favor us with your views.
I have been a member for 18 years, but I felt anew the traditions and standing of our club and it was a wonderful year for me.
Finally, I wish to thank Ms. Takahashi and our office staff for their consistent support given me during my year.

**Tokyo Rotary Club Donation 2000-2001

& World Community Service &

D. 2580 Mine Clearance Special Committee (Cambodia) \4,000,000
Permanent Fund for Maintenance of the Yoneyama Memorial \500,000
WCS Well digging project; School desk project (Philippines) \100,000
Baguio Scholarship Fund \100,000
21st Century Japan Mongol Association – Cold Wave Victims Relief \50,000
Indonesia Middle School Repair \20,000

& Community Service &

Miyake Island Volcanic Disaster Relief (To District Fund for above \500,000) \298,000
Tottori Earthquake Relief (To District Fund for above \500,000) \296,000
St. John Ambulance Japan Association \201,600
Tokyo Revolution of the Mind Promotion Council \100,000
Tokyo Metropolitan School / Family Federation \100,000
Japan School for the Deaf and Dumb \100,000
Toshinkai for the Rehabilitation of Handicapped Children and Adults \100,000
Youth Welfare Center \100,000
Japan Youth Association \100,000
Airinkai \100,000
Japan Red Cross \60,000
UNESCO Asia Culture Center \60,000
Ake-no-hashikai \50,000
Economic Organizations Cooperative Association for Tokyo Metropolitan Community Chest \50,000
Make-a Wish of Japan (MAWJ) \50,000
Asuha-no-kai Community Welfare Corporation \20,000
World Handicapped Artists∏ Association \5,200

The above disbursements have been made possible through the funds received from our members in our Niko-niko (Smile) Box for which support we thank you.

**Two Banners Added to Our Collection

²Malmö Ellenbogen R.C., Sweden
²Raffles City R.C., Singapore

**Club Assembly

June 13, 2001 13:40-15:00
Imperial Hotel, Sakura Room

**Attendance and Visitors

Total attendance for 4 meetings was 185 on the average including visitors.

Sweden:
Mats Bruzæus, Malmö Ellenbogen R.C.
USA:
Toshiba Nishimura, New York R.C.