Applications for the 2022 English Information Disclosure Support Program for Listed Companies were accepted starting April 25, 2022.

This article was automatically translated.

Greetings

As part of our efforts to realize Tokyo as an international financial center, our organization has been implementing the English Disclosure Support Project (Project Name: Disclosure G, where G stands for Green, Global, and Governance) as a Tokyo Metropolitan Government-subsidized initiative since fiscal year 2021. In fiscal year 2022, we will expand the number of supported companies and continue the project. We are pleased to announce that we are now accepting new applications for companies to participate in this project, as detailed below.

Recently, companies listed on emerging markets and elsewhere, often referred to as social issue-solving companies, play a significant role in Japan's economy. However, we recognize that many companies shortly after listing generally lack sufficient personnel dedicated to IR, resulting in limited investment from overseas investors.

To overcome this, it is essential to implement effective IR activities, such as building an equity story that attracts the attention of overseas investors and translating and disseminating disclosure information into clear English. Furthermore, such efforts are also considered effective for companies expanding overseas. Therefore, this program will provide IR support to companies, including assistance in building their equity story, advice on creating financial disclosure materials and support for their English translation, and advice on communicating with overseas investors.

This project is sponsored by Japan Exchange Group, Inc. and Tokyo Stock Exchange, Inc.

An online briefing session for interested listed companies regarding this project has been conducted and is available for viewing via the video link below. Please also check the URL for the presentation materials.

Pre-launch Briefing

The video of the preliminary briefing session held in May can be viewed below. (Opens YouTube)

https://www.youtube.com/watch?v=3XUBVK5dsqA

Materials can be viewed here.

English Disclosure Support Program

Implementation Guidelines

Implementation Guidelines for the English Disclosure Support Project, Fiscal Year 2022

These guidelines comprise four parts: the "English Information Disclosure Support Project" Guidelines (Main Rules), the "Application Guidelines for the English Information Disclosure Support Project," the "Implementation Guidelines for Selecting Contractors for the English Information Disclosure Support Project," and the "Implementation Guidelines for the English Information Disclosure Support Project." Please be sure to review these guidelines before applying for this support program.

Support Program Details

1. Equity Story Development Support
2. Advice on Preparing Financial Results Summaries and IR Presentation Materials, and Support for Their English Translation
3. Communication Advice for Overseas Investors

In principle, the support programs listed in items 1 through 3 above will be implemented. However, the content of the support programs may be modified at the discretion of the IR support provider based on the circumstances of the selected business operator.

Applicant Requirements

Applicants must be corporations that meet all requirements listed in "Section 2: Applicant Requirements" of the "Recruitment Guidelines for the English Information Disclosure Support Program," including the following criteria. Support programs will be implemented for companies selected by the Selection Committee from among applicants meeting these requirements.

1. Already listed on the Tokyo Stock Exchange Growth Market or Standard Market.
2. Be within three years of its initial listing as of April 1, 2022.
3. The company must not have a parent company listed on the Tokyo Stock Exchange Prime Market. Note: "Parent company" refers to the parent company as defined in Article 8, Paragraph 3 of the Ordinance on Terminology, Forms and Preparation Methods of Financial Statements, etc. (Ministry of Finance Ordinance No. 59 of 1963).
4. The company must have a head office, branch office, sales office, or other base of operations in Tokyo.
5. The company must have an IR system capable of conducting IR activities for overseas investors, or have plans or intentions to establish such a system.
6. The company must be expanding its business overseas or have plans or intentions to do so.
7. The company must be actively engaged in ESG activities or have plans or intentions to do so.
8. Not having received English information disclosure support from this organization in fiscal year 2021.

Number of Companies Selected

Approximately 15 companies are planned for selection in fiscal year 2022. Note that applications will close once the expected number of selected companies is reached.

Application for this Support Program (Applications are now closed)

Apply Here 

Application Fields

• Company Information
• Contact Information
• Listing Information (Stock Code, Market Capitalization (based on closing price as of April 1, 2022), etc.)
• Information on Your Company's Disclosure and IR Activities (Business Overview, Current IR Structure, Management Commitment to IR, Status of English-Language Disclosure, Current IR Challenges, Number of Quarterly IR Activities (Meetings with Individual Investors, Domestic/Overseas Institutional Investors, Analysts), IR Support Requirements, Disclosure Materials Requiring English Translation, ESG Initiatives, Overseas Business Expansion)

Sponsor

Japan Exchange Group, Inc.

Tokyo Stock Exchange, Inc.

Contact

"English Disclosure Support Project" Secretariat: disclosure.g@fincity.tokyo

*Important questions received regarding this project will be posted on this page as Q&A entries, including both the question and the answer.

Q&A

Q1. How far into the future can overseas business plans be? Must plans be for the immediate 1-2 years?

A1. There is no set requirement for the length of the plan. An intention to expand is acceptable, but please describe your plans for overseas business development as detailed as possible on the application form.

Q2. If I apply for the earliest selection committee schedule and am selected, when can I expect the support program to begin?

A2. To maximize the support period, we plan to hold the first selection committee meeting once we have gathered applications from companies. We will initially collect applications submitted by May 27, hold the selection committee meeting as soon as possible, and aim to start support within June.

Q3. Are companies already disclosing their earnings releases and earnings explanation materials in English still eligible for support?

A3. You would be eligible for support. However, it is important to consider how you wish to improve and strengthen your existing English disclosure efforts, such as further refining disclosure materials or expanding the scope of English disclosure. Please note that the application form includes a question asking for "disclosure materials for which you specifically request English translation support." If you wish to have English translations of disclosure materials other than the financial results brief and financial results briefing materials, we will consider providing support.

Q4. How will the actual support be provided? For example, will regular meetings be held? Will a dedicated support person be assigned?

A4. As this is primarily hands-on support, we plan to assign dedicated personnel to provide close support to each company. Transpacific Inc., the contractor for this project, will implement the support. The frequency and format of meetings will be determined in consultation with each company after selection.

Q5. I understand this support program was also implemented last year. What is the outlook for implementation next year and beyond?

A5. Implementation beyond next fiscal year is undecided. We recommend applying early if you are interested in this program. Please note this is a Tokyo Metropolitan Government subsidy program based on a single-year budget.

Q6. I heard from a company that received this support that they received advice on their equity story not only from the translation company but also from CFOs of other companies. Are there plans to continue this practice?

A6. Last year, as a pilot program, individuals such as CEOs from other companies served as support advisors. This year, however, to provide more detailed support, we have entrusted this project to Transpacific Inc. This year, we will provide more effective support, including IR advice appealing to overseas investors and assistance with translating materials into English.

Q7. Are there any additional costs associated with receiving this support?

A7. There are no additional fees for support within the scope outlined in the implementation guidelines. Companies wishing to receive support must list the disclosure materials they require assistance with on the application form. The specific support content will be determined through consultation after selection.

Q8. What specific changes were observed in companies that actually received support? Were there changes beyond the English translation of disclosure materials, such as organizational or structural changes?

A8. We plan to conduct effectiveness assessments for companies supported last fiscal year in the future. However, feedback from last year's supported companies included statements such as, "Our internal English IR system was established, and receiving advice on IR materials boosted our confidence in IR."

Q9. What factors are prioritized during the selection review committee?

A9. Support recipients are selected based on a comprehensive evaluation of the application form content and interviews. We consider management commitment and the company's stance on overseas expansion to be crucial perspectives for conducting overseas IR. Therefore, we ask applicants to describe these points as concretely as possible in the application form and to convey their enthusiasm for IR during the interview.