1. Aiming for Realization of “Smart Platinum Society” 16 th June 2014 Ministry of Internal affairs and Communications

2.  Issues in super-aging society - Decrease in productive population - Increase of medical expenses  Trends in ICT use - Technical development in cloud computing, sensors, etc. - Inter-professional collaboration in the field of medical care  Directions toward realization of Smart Platinum Society - Networking - Data utilization - Lowering of potential growing force - Deterioration of financial situation ⇒ Arrival of Super-aging Society 1

3. □ Present status of and issues in super-aging society □ Trends in ICT use □ Directions toward realization of Smart Platinum Society ✔

4. Working Age Population Decreasing Working Age Population ※ Working Age Population: Population of 15-64 years old Source : National Institute of Population and Social Security Research “Population Statistics Year of 2012” 2010 → 2050 31 million population decreasing 2010 → 2030 13 million population decreasing 3 87.17 81.03 67.73 50.01 44.18 100 90 80 70 60 50 40 30 20 10 (million) 49.66 ■ As for the productive population, the 1990s was a peak and it has continued to decline since. ■ It is expected that 13 million people in 2030 and 31 million people in 2050 decreases approximately, compared to 2010.

5. Rapid Increase in National Medical Care Expenditure (Source: Annual Health, Labour and Welfare Report 2011-2012 、 Ministry of Health, Labour and Welfare(MHLW) forecast) National medical care expenditure (trillion yen) 20.6 27.0 30.1 31.1 31.0 31.5 32.1 33.1 34.1 34.8 47.2 52.3 Medical care expenditure on the elderly (trillion yen) (％)(％) (trillion yen) 4 34.8 37.4 38.6 ● National medical care expenditure increased by 3.1% from the previous fiscal year to reach the highest recorded level of 38.6 trillion yen in FY 2011 ● National medical care expenditure will reach to 52.3 trillion yen and medical care expenditure on the elderly will reach to 24.1 trillion yen in FY 2025

6. Transition in Population Aging Rate: Comparison with Other Countries Source : Prepared by MIC based on data culled from “World Population Prospects: The 2012 Revision” by the United Nations. Note that data for Japan up to 2012 is based on the “2010 National Census” by MIC. ● Japan’s population aging rate is at the highest level among advanced countries, and is expected to reach 40% by 2050. This phenomenon is also expected to arise in the BRICs nations, which are currently experiencing advanced economic growth. In the latter, said rate is projected to grow rapidly from here onwards to reach approximately 30% by 2050. (%) Japan Italy Germany France Canada UK US Japan China India Russia Brazil Korea Singapore Indonesia 5

7. □ Present status of and issues in super-aging society □ Trends in ICT use □ Directions toward realization of Smart Platinum Society ✔

8. Trends in ICT 40ZB ● Amount of all digital data will increase about 300 times between 2005 and 2020 (130 exabytes → 40 zettabytes (40,000 exabytes)) Sensor Networks Smart Phones Cloud Computing Big Data ● The number of smart phone subscribers in Japan will increase about 10 times between 2011 and 2018 (9.6 million → about 94 million) 20002010 Future (around 2020) Die size 10mm 2 ~2-3mm 2 1-2mm 2 Power consumption 0.1mW0.05mW< 0.05mW Average Selling Price > $3$0.70 < $0.50 ● Downsizing, power reduction and cost reduction of sensors are progressing all over the world ● The cloud computing services market in Japan will grow about 8 times between 2010 and 2016 Source ： MM Research Institute, Ltd Source ： Jean-Christophe Eloy=Yole Development Source: MIC ● About 1/4 of all sensors used globally are used in Japan. (4.5 billion units (Japan) / 17 billion units (World)(sales volume in 2010)) Source ： Fuji Chimera Research Institute, Inc Source: MIC 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Million) Smart phone subscribers Feature phone subscribers Smart phone subscriber ratio 7

9. Progress of ICT in the medical field １９７０ ’s １９８０ ～９０ ’s ２０００ ’s ２０１０ ’s On-line receipt ○ Coordination among medical facilities ○ Information sharing with patients and fields other than the medical field ○ Coordination among medical facilities ○ Information sharing with patients and fields other than the medical field Image system (PACS) Systems by each department Coordination among departments Medical accounting system Department system (inspection, goods management, etc.) Ordering system Integration of intra- hospital systems While ICT has been technically progressing such as Big Data and Sensor, the usage of ICT in the medical field progresses to the phase of problem solutions by medical information sharing, such as cooperation of many types of job and building a health model. 8 Medical × ICT Computerization of medical information Medical × ICT Computerization of medical information Medical ×ICT Usage of medical information etc Medical ×ICT Usage of medical information etc Technical progress of ICT Big Data Sensor Cloud computing Smart phone etc By usage of ICT, Medical information is able to be used for cooperation of many types of job and building a health model, for example.

10. □ Present status of and issues in super-aging society □ Trends in ICT use □ Directions toward realization of Smart Platinum Society ✔

11. Live independently by maintaining health for a long time ■ Analysis of big data such as medical checkup data and receipt data makes it possible to enjoy high-quality health services. ■ Health of the entire population including persons who aren’t interested in health care is maintained and enhanced through health promotion by giving incentives such as health points. ■ Same medical treatment can be received in different hospitals by sharing and utilizing data in the fields of medical care, nursing care and health care. ■ Comprehensive regional care is realized which allows people to live own life in familiar environments by standardizing home medical care and nursing care. Health Promotion Model based on analysis of big data EHR Minimum Infrastructure Model High-quality and inexpensive minimun medical information collaboration infrastructure utilizing cloud Costs are reduced by utilizing the medical fee charging system (receipt computer) which has already been introduced by many medical institutions → Participation of more related organizations including medical clinics is promoted Cloud standardization model for home medical care and nursing care Information and systems shared in the home medical care and nursing care fields are standardized (enabling collaboration among parties involved in home medical care and nursing care) An inexpensive model utilizing cloud is developed which can be easily introduced by small-and-medium-sized medical clinics → This prevents the establishment of too many specifications and enables information sharing 10 Local governments and companies (the insured) Analysis of big data including information on health Collecting and accumulating data without much effort By collecting evidences; ⇒ Health promotion approach is improved ⇒ Health promotion plans are made efficiently and effectively Incentives in accordance with persons’ attributes Health enhancement services adapted to individuals Health promotion including the uninterested which account for 70% of the population ■ Health promotion based on living places ■ Health promotion based on workplaces Model 1 Local revitalization model in rural areas Model 1 Local revitalization model in rural areas Model 2 Urban private service utilization model Model 2 Urban private service utilization model Model 4 Family health model Model 4 Family health model Model 3 Continuous health model after career change or retirement Model 3 Continuous health model after career change or retirement Establishment of ICT Health Model (prevention) Nationwide expansion of medical/nursing information collaboration infrastructure Local governments Nursing care facilities Patients and residents Pharmacies Medical clinics Core medical institution Patients’ homes Registering and accessing information on medical treatment of patients Accessing information on prescription issued by hospitals and medical clinics Home care service offices Attendant nursing care stations Registration of information at home Confirmation of patients’ information Attendant pharmacies Accessing information on own medical treatment and prescription on PCs or mobile phones Home care support offices

12. Comprehensive Data Collaboration Model in the fields of health, medical and nursing 11 ■ Various services that focus on individuals are organically linked by establishing a platform that integrates information on health, medical and nursing care and life-related information. Health data portability for this purpose will be realized. Comprehensive Data Collaboration Model in fields such as health, medical and nursing care (realization of smart platinum platform) Information on medical and nursing care Information on health care Life-related information Data of Person A Personalization by linking different types of information A platform to integrate information on health, medical, and nursing and life-related information is established (smart platinum platform). Various services that focus on individuals are linked organically and accumulated data is personalized for use of each person. Local revitalization and creation of new services by providing careful prevention services and life support based on information on health, medical and nursing care will be realized. Information on administrative services Wearable sensor / contactless monitoring Smart Platinum Platform Information on private services Data of Person B Core medical institutions, medical clinics, pharmacies, local governments, etc. Home care support office Attendant nursing care station, home care service, home-visiting pharmacy Life support services (shopping, delivery of meal, monitoring and on- demand transportation), communication robot, etc. Receipt data / medical examination data Health data Information on services / Needs of the elderly

13. ■ As the rapid decrease in the productive population is expected in the future, it is an urgent issue to promote the use of the elderly, persons who require nursing care and women (carers of children) who are potential human resources. ■ Telework realizes a flexible working style utilizing ICT regardless of time and place. Therefore, it will realize a working style adapted to each life stage of active seniors, persons who require nursing care and women (carers of children). ■ From now on, new working styles (including virtual hospitals, etc.) that allow carers (management level) including male workers can work through telework will appear by utilizing new ICT tools (virtual office, etc.) adopting new technology such as cloud and 4K/8K. Image (Current state of working environments) - The productive age population decreases significantly due to the rapid progress of an aging society with fewer children - There are high needs for working styles which allow seniors to work reasonably even with less income New working styles in virtual office Each employee who works at home uses various functions of the company on cloud. This system realizes a stress-free telework environment as if they were working at their real office. New working styles such as virtual office 12 Source: Material prepared by member Kubota, 6 th ICT New Project Creation Promotion Conference Copyright@2014 TELEWORK MANAGEMENT All Rights Reserved Change in production age population Source: National Institute of Population and Social Security Research Population Projections for Japan (January 2012) 10,000 people Average desired working days and average desired income in each field 2010 – 2030 Decrease in 13 million people *Production age population is a population of 15~64 years of age 2010 – 2050 Decrease in 31 million people Average expected working days (per week) Average expected income (per months) Needs for working styles which allow the elderly to work reasonably even with less income Business trip Telework Home If there are functions of the company on cloud, workers can work at any time and continue business even in times of emergency Face-to-face communication Easy to have conversations through chats Sharing materials on the screen Having meeting with everyone at any place Checking the status of each employee at a glance Work utilizing specialized capability General administrative duties in company Work for nursing care Others Work related to local revitalization Work related to agriculture Creative work utilizing hobby or specialized skill Desk work related to administrative services Work in IT environment at home Work related to cooking Actual work related to administrative services Work to support child rearing in the community *Bubble size: Number of persons who desire to work in the field (multiple answers allowed) *Average expected working days were calculated as follows; -I desire to work constantly everyday: 5 days per week -I desire to work constantly a few days per week under reasonable conditions: 3 days per week -I desire to work on a irregular basis when I want to work: 1 day per week