Guidelines concerning Association Member Analysts’ Interviews, etc. with Issuers andCommunication of Information 1
September 20, 2016
1. Purpose of Establishing Guidelines
The Japan Securities Dealers Association has formulated the Rules Concerning Handling of Analyst
Reports (hereinafter referred to as "Rules") to regulate internal administration systems pertaining to
the handling of Analysts Reports from the perspective of the preparation, publication and use, etc.,
of Analysts Reports. In addition, the Concept behind Self-Regulatory Rules (hereinafter referred toas "Concept of the Rules") stipulated in the Rules sets out matters such as the interpretation of theRules and matters requiring attention.
On the other hand, the kinds of action taken by Analysts for obtaining information from companies
that issue securities (hereinafter referred to as "Issuers"), and for the communication to investors or
in-house officers and employees (hereinafter referred to as "Investors, etc.") of the information thatis so obtained or of analyses and evaluations, etc., by Analysts conducted on the basis of that
information by means other than Analyst Reports have not been set out explicitly in the Rules or theConcept of the Rules.
In recent years, however, a practice has arisen that both deviates from the proper posture of Analysts
and is potentially problematic from the perspective of ensuring the transparency and fairness of themarkets, namely that Association Members’ Analysts have obtained undisclosed information bysuch means as interviews, etc. with Issuers and have promptly communicated that information as“hot news” selectively to some specific Investors, etc. In addition, both domestically and overseas
there have been improper acts of information communication such as the communication of
corporate-related information2 by Analysts to Investors, etc., and the communication of analyses,
evaluations, etc., that are inconsistent with the content of published Analyst Reports, and these acts
have given rise to situations in which accusations have been made of violations of laws andregulations.

1 This is a tentative translation of the Guidelines. Please note that the Japanese original is theauthoritative version.
2 Corporate-related information is “undisclosed material information on the operation, business orproperties of a company which is an issuer, which is found to have an impact on customers’
investment decisions” as stipulated in Cabinet Office Ordinance on the Financial Instruments
Business (Article 1-4-14).
1Given this situation, there have been mounting calls among Association Members for unified
industry thinking with regard to what constitutes optimal conduct on the part of Analysts.
Some observers hold the view that the optimal manner in which to conduct information disclosureand the communication of information should be discussed widely, including by Issuers andinvestors. However, because the conduct of Association Members’ Analysts is linked very closelywith the business activities engaged in by Association Members, in order to ensure market
transparency and fairness and to enhance the credibility of market intermediation functions, theAssociation believes that it is necessary for the securities industry to adopt a stance of first doing
what it can as an industry.
Based on this thinking, it has prepared these Guidelines concerning Association Member Analysts’
Interviews, etc. with Issuers and Communication of Information (hereinafter referred to as "these
Guidelines"), setting out the optimal forms of interviews, etc., by Analysts and the optimal forms ofcommunicating information obtained from Issuers and of analyses and evaluations, etc., based onthat information.
Naturally, it should be noted that these Guidelines do not limit constructive dialogue between
Analysts and Issuers in relation to the writing of Analyst Reports by Analysts. These Guidelines do
not stipulate a blanket prohibition of interviews, etc., with Issuers by Analysts, and do not restrict theacceptance of information sent by Issuers. They simply indicate the conduct and mindset of Analysts
that will enable appropriate and effective provision of information to Investors, etc. By
demonstrating proper practice by Association Members through these Guidelines, it is hoped that thepractice of fair and equitable information disclosure to Issuers and Investors, etc., will become wellestablished.
2. Overview of these Guidelines
With regard to optimal ways of obtaining information from Issuers, these Guidelines set out
interpretation of the Rules with regard to the kinds of information that should be obtained throughinterviews, etc., and conversely, the kinds of information that should not be obtained throughinterviews, etc.
Next, they set out six types of communication of information by Analysts by means other than
Analyst Reports, and for these they set out interpretation of the Rules with regard to information that
it is acceptable to communicate to Investors, etc. and information that should not be communicated.
Finally, they list specific examples of information in each of the types of act of communicating2

information. It should be noted that the specific examples are simply examples and do not cover allcases. With regard to the nature of action taken by Analysts to communicate information, please use
these Guidelines to assist the making of judgment as to their propriety in light of the interpretation
set out herein.
In Article 2 of the Rules, Analysts are defined as “officers or employees of Association Members
who write Analyst Reports.” The definition of Analysts in these Guidelines is the same, but since thedescription of persons “who write Analyst Reports” could be assumed to encompass a wide range of
people whose in-house duties include the writing of Analyst Reports (including the writing of partsof Analyst Reports or assisting therewith by means of interviews, etc.), please take care not to limit it
only to persons who have already written (are the signatories for) Analyst Reports.
Definitions of terms used in these Guidelines are set out below.
Definitions of terms used in these Guidelines
Interviews, etc.:
Attending briefings held by Issuers (excluding large-scale briefings attended by large numbersof participants (including “large meetings”) or large-scale conferences hosted by securities
companies, etc.), or conduct interviews with Issuers.
Earnings:
Information relating to profits, sales, volume of orders received, sales volume, etc., (including
information concerning extraordinary profits and losses, etc., and current-term net income)aggregated to represent the results of Issuers’ corporate activity, including not only
quantitative numerical information (excluding figures for sales, volume of orders received,
sales volume, etc., that clearly have no effect on profits, including figures not only forcompanies as a whole but also for segments) but also qualitative information such as“Favorable,” “Poor/stagnant,” ”No change,” relating to trends and changes in the aforesaid
numerical information.
Plans:
Forecasts of earnings and business plans for the accounting period released by Issuers at thestart of that period, and business plans for the following accounting period and beyond.
Published [kohyo]:
In addition to disclosure made pursuant to laws and regulations, this also applies toinformation that is common knowledge for such reasons as having been mentioned by Issuers
themselves at press conferences or press clubs, etc.
Publicly available [kokai/kochi]:Information that, albeit not published as described in the preceding definition, has become3extensively available by being posted by a company on its own website, disclosed via industry
organizations, or mentioned in newspaper reports, etc. (excluding observational reporting)
3. Matters requiring attention relating to the obtainment of information from Issuers byAnalysts
As stated in Section 1. (Purpose of Establishing Guidelines) above, the purpose of establishing these
Guidelines is to indicate the practice to adopt for the communication of information to Investors, etc.,
by Analysts.
However, amid the large volume of information that Analysts obtain from Issuers, in order to focus
attention solely on and manage the communication of information to Investors, etc., it is essential to
make judgments as to the propriety of communicating the large volume of information obtained.
Especially for the examination of the applicability of the provisions concerning Material Information(stipulated in Article 8, Paragraph 1, Item (1) of the Rules and including corporate-related
information; the same shall apply hereinafter), the Examining Officer in the Research Division or aCompliance Division could be considered suitable for this, but in practice the checking of all
acquired information obtained by Analysts by Examining Officers in the Research Divisions or aCompliance Division would impose a considerable burden on them, and could be consideredunrealistic.
In view of this, Association Members could consider applying certain limits on their Analysts at thestage of obtaining information. That is, with regard to information not considered appropriate tocommunicate to Investors, etc., it should not be obtained when conducting interviews, etc.
In addition, no special limits are likely to be necessary when Analysts obtain information from
Issuers through uniform mailings to Analysts and other relevant persons, and when obtaining
information upon attending large-scale briefings and other such meetings attended by large numbersof participants, but if such information falls into the category of Material Information, including
information obtained unintentionally as a result of being in those situations, it should be managed
appropriately. With regard to the management of information obtained by Analysts, please refer to
Section 4 (Rationale of the management of undisclosed information obtained from Issuers andcommunicating it to Investors, etc.). If Analysts have obtained information from Issuers that falls
into the category of Material Information, it is recommended to take measures necessary to ensure
market transparency and fairness, including appealing to the Issuers to make information publicly
available and refusing to receive future forwarding of such information.

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This section sets out the thinking concerning types of information that Analysts should not obtainthrough interviews, etc. with Issuers and the types of information that are exceptions to this, bearing
in mind in particular that the obtainment by Analysts of information relating to undisclosed earnings
for accounting periods that are undisclosed through interviews, etc. with Issuers arouses serious
concern that more fundamental information could be acquired thereby that would make it easy todetermine those undisclosed earnings.
[1] Interviews, etc. with Issuers by Analysts regarding “information relating to undisclosed earnings
for accounting periods”
Analysts shall not, subject to exception, conduct interviews, etc. with Issuers that relate toaccounting periods for which the earnings are undisclosed.
Rationale- With regard to information that gives pointers to the progress of, and prospects for, undisclosed
earnings for accounting periods (quarterly, full-year), it falls into the category of Material
Information, or contains such information, or there is serious risk that in combination with otherinformation it could become Material Information.
- In addition, entrusting Analysts to make judgments, after obtaining such undisclosed information,
as to whether or not it constitutes Material Information risks inducing the perpetration of
inappropriate acts of communicating information by Analysts. For reasons such as this, there is arisk that the information-management system will be rendered inadequate.
- In consequence, the preferable method of enhancing the effectiveness of informationmanagement arrangements is for Analysts not to obtain information relating to undisclosed
earnings through interviews, etc. with Issuers, irrespective of whether or not it constitutes (orcontains) corporate-related information.
- As an exception, it is acceptable to obtain by interview, etc. undisclosed information that has
become publicly available and items therein (e.g. detailed region and segment-specificinformation provided separately by Issuers). However, it is essential to take care not to obtain
information embedded in publicly available information that could be used for the purpose of
facilitating the estimation of undisclosed earnings for accounting periods (information that could
make it easy to estimate figures such as cost, profit-ratio, and monthly financial results).
- If information relating to undisclosed earnings for accounting periods is obtained unintentionally,
it must be reported to the Examining Officer in the Research Division or a Compliance Division.
If, as a result, the information is judged to fall into the category of Material Information, it must5

be managed appropriately. In addition, if the Analyst and the Examining Officer who hasreceived the report judge that there is a risk that the said information could fall into the categoryof corporate-related information, it must be reported to the Compliance Division in accordancewith the method prescribed in internal rules.
- The obtainment of “information relating to undisclosed earnings for accounting periods” throughinterviews, etc. with Issuers conducted jointly with Investors, etc., is not subject to in-houseexamination as to matters such as whether it falls into the category of Material Information, andrisks being deemed the equivalent of communicating the said information directly to specificInvestors, etc. In view of this, irrespective of whether they have companions (Investors, etc.),
Analysts shall not conduct interviews, etc. with Issuers for “information relating to undisclosed
earnings for accounting periods.” It is also essential to take care that in cases in which they
accompany Investors, etc., for other purposes, the companions (Investors, etc.) do not conduct
interviews, etc. with Issuers for “information on undisclosed earnings for accounting periods.”[2] Interviews, etc. with Issuers by Analysts regarding “quantitative information other than that
relating to undisclosed earnings for accounting periods”
Analysts shall not conduct interviews, etc. with Issuers regarding quantitative information(excluding information that is published or has become publicly available) other than that relating
to undisclosed earnings for accounting periods that enables earnings to be estimated easily.
Rationale- The quantitative information (excluding information that is published or has become publicly
available) among undisclosed information for accounting periods can be linked with earnings
indirectly by such means as combining it with other information and making simple calculations.
Therefore, even if the nature of the information itself relates to matters other than earnings, it may
include the information that enables earnings to be estimated easily (information that enables
earnings to be estimated easily without undergoing the normal process of analysis by Analysts;
the same shall apply hereinafter). In view of this it is essential to take care when conducting
interviews, etc.. Nevertheless, as shown in the following examples, information that is clearly notconnected with earnings may be obtained by interview, etc..
>> The content of full-year and medium-term plans (including company earnings forecasts) as set
out below.
However, with regard to the content of midterm revisions of full-year earnings forecasts, it
should be possible to check matters such as the background of disclosed corporate
information, the reasons therefor, and region and segment-specific breakdowns. On the other6

hand, care must be taken when beginning to aggregate earnings for the relevant quarters, andbe taken to ensure no interviews, etc. enable undisclosed earnings for accounting periods to be
estimated easily.
a) Environmental awareness: Exchange, crude-oil prices, industry-wide demand forecasts,
trends in product prices, etc.
b) Sales volume, etc.: Company sales projections, price forecasts, branch/store-opening plans,etc.
c) Capital investment, R&D plans, financial policies (e.g. targets for reducing accounts
receivable turnover ratios), etc.
Note: This is based on the premise that company plans (including earnings forecasts) that do
not include undisclosed actual earnings figures do not fall into the category of earningsrelated information.
>> Future prospects
With regard to next-term company plans (including company earnings forecasts), however,
because there is a serious risk that interviews, etc. conducted in the fourth quarter or the firstquarter immediately following it will lead to the obtainment of either concrete figures for
current-term earnings or other information from which they could be estimated easily,interviews, etc. are not to be conducted.
- If quantitative information other than that relating to undisclosed earnings for accounting periods
that enables earnings to be estimated easily is obtained unintentionally, this must be reported to
the Examining Officer in the Research Division or a Compliance Division. If, as a result, theinformation is judged to fall into the category of Material Information, it must be managed
appropriately. In addition, if the Analyst and the Examining Officer who has received the report
judge that there is a risk that the said information could fall into the category of corporate-related
information, it must be reported to the Compliance Division in accordance with the method
prescribed in internal rules.
[3] Interviews, etc. with Issuers by Analysts regarding information other than that referred to in [1]and [2] above.
It is acceptable to conduct interviews, etc. with regard to information other than that referred to in[1] and [2] above.
Rationale- With qualitative information other than that relating to earnings, be it disclosed or undisclosed
information for accounting periods, there is a risk that it falls into the category of information

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linked with undisclosed earnings for accounting periods (enabling earnings to be estimatedeasily). However, as the probability thereof is low compared with “information relating toundisclosed earnings for accounting periods” and “quantitative information other than that
relating to undisclosed earnings for accounting periods that enables earnings to be estimatedeasily,” it is acceptable to obtain it by interviews, etc. with Issuers.
- If it is difficult to decide whether information obtained by interview, etc. is linked with
undisclosed earnings for accounting periods (enabling earnings to be estimated easily) or falls
into the category of Material Information that should be managed as other corporate-related
information (fund-raising, business collaboration, etc.), this must be reported to the Examining
Officer in the Research Division or a Compliance Division. If, as a result, the information is
judged to fall into the category of Material Information, it must be managed appropriately. In
addition, if the Analyst and the Examining Officer who has received the report judge that there isa risk that the said information could fall into the category of corporate-related information, it
must be reported to the Compliance Division in accordance with the method prescribed ininternal rules.
4. Rationale of the management of undisclosed information obtained from Issuers and its
communication to Investors, etc.
[1] Management of undisclosed information obtained from Issuers
It must be kept well in mind that among undisclosed information obtained from Issuers there is aserious risk that information that is not publicly available could fall into the category of Material
Information, and it must be managed appropriately after taking steps such as referral to aCompliance Division.
Rationale- It must be kept well in mind that among undisclosed information that Analysts obtain from
Issuers there is a serious risk that information that is not publicly available could fall into thecategory of Material Information.
- If among undisclosed information that Analysts obtain from Issuers there is information that is
not publicly available that falls into the category of Material Information, including whenobtained unintentionally, this must be reported to the Examining Officer in the Research Division
or a Compliance Division and be managed appropriately in accordance with internal rules.
- Notwithstanding the above, if information obtained from Issuers is “information relating toundisclosed earnings for accounting periods” or “quantitative information other than that relating8

to undisclosed earnings for accounting periods that enables earnings to be estimated easily,” thismust be reported to the Examining Officer in the Research Division or a Compliance Division.
- If an Analyst or the Examining Officer in the Research Division who receives a report from theAnalyst finds it difficult to decide whether information obtained by the Analyst from the Issuer
falls into the category of Material Information, they must make referral to a Compliance Division.
If, as a result, the information is judged to fall into the category of Material Information, it must
be managed appropriately.
[2] Communicating undisclosed information by the Publication, etc. of Analyst Reports, etc.
When undertaking Publication, etc. of Analyst Reports that contain information that is not publicly
available and forms part of undisclosed information obtained from Issuers, or analyses,
evaluations, etc., of individual companies based on the said undisclosed information, they must be
handled in accordance with the Rules and the Concept of the Rules.
Note: In this section and hereinafter the use of the term “Publication, etc.” relating to Analyst
Reports shall mean the publication or use (kohyoto) of Analyst Reports by Association
Members as prescribed in Article 1 of the Rules. This differs from the meaning of“Published” [kohyo], as defined in Section 2 of these Guidelines, which refers to Issuers
making Issuer-related information public.
Rationale- Internal examinations and other handling relating to the use of Analyst Reports shall be
conducted in accordance with the methods prescribed in the Rules.
- Particular attention must be paid to Prohibition of Provision of Corporate-related Information, etc.
set out in iv, of the Concept of the Rules. If there is a strong probability that undisclosed
information obtained from Issuers includes information that is not publicly available but iscorporate-related information or will become corporate-related information, that information or
analyses, evaluations, etc., based on that information must not be included in Analyst Reports. In
addition, other than with regard to information concerning which there is a strong probability that
it is corporate-related information or will become corporate-related information, it must be bornein mind that examinations of Analyst Reports must be conducted in accordance with Article 4 of
the Rules.
- As set out in Section 3 (Matters requiring attention relating to the obtainment of information from
Issuers by Analysts) [1] (Interviews, etc. with Issuers by Analysts regarding “information relating
to undisclosed earnings for accounting periods”), there is a serious risk that it falls into thecategory of Material Information or contains such information, or that in combination with other9

information it could become Material Information.
- If, as stated above, the relevant information falls into the category of information concerningwhich there is a strong probability that it is corporate-related information or will become
corporate-related information, or that it contains such information, or that in combination withother material it could become Material Information, it must not be included in Analyst Reports.
- In addition, even if it is judged that information relating to undisclosed earnings for accounting
periods obtained from Issuers does not fall into the category of being information concerningwhich there is a strong probability that it is corporate-related information or will become
corporate-related information, if Analyst Reports that contain the said information or analyses,
evaluations, etc., of individual companies based on the said information are to be used, it isessential to consider, together with other matters for examination, the propriety of doing so.
- In the following cases, an Analyst or the Examining Officer in the Research Division who
receives a report from an Analyst must request an examination by a Compliance Division.
a) If, prior to Publication, etc., Analyst Reports contain undisclosed information obtained from
Issuers that includes information that is not publicly available, and it is difficult to decide
whether the latter falls into the category of information concerning which there is a strong
probability that it is corporate-related information or will become corporate-related
information.
b) If, prior to Publication, etc., Analyst Reports contain undisclosed information obtained from
Issuers that includes information that is not publicly available, and it is difficult to decide
whether the latter falls into the category of “information relating to undisclosed earnings foraccounting periods” or “quantitative information other than that relating to undisclosed
earnings for accounting periods that enables earnings to be estimated easily.”c) If Analyst Reports contain analyses, evaluations, etc., of individual companies based on
information that is not publicly available among undisclosed information obtained by Analysts
from Issuers, and it is difficult to decide whether the Publication, etc. of the said Analyst
Reports would risk falling into the category of being an act of soliciting by the provision of
corporate-related information.
[3] Communicating undisclosed information by methods other than through Analyst Reports
With regard to information that falls into the category of Material Information, namely informationthat is not publicly available amid undisclosed information obtained from Issuers, and analyses,
evaluations, etc., of individual companies based on the said information, prior to the Publication,etc. of Analyst Reports it is not permitted to communicate it selectively to specific Investors, etc.,
by methods (Refer to [2] above with regard to inclusion in Analyst Reports) other than through10Analyst Reports. However, information relating to undisclosed earnings for accounting periods
must not be communicated selectively to specific Investors, etc., irrespective of whether or not it
constitutes Material Information.
Rationale- If information among undisclosed information obtained from Issuers is not publicly available andfalls into the category of Material Information, Analysts are not permitted to communicate thesaid information selectively to specific Investors, etc., prior to the Publication, etc. of Analyst
Reports by any means (telephone, e-mail, chat, documents other than Analyst Reports, etc.) otherthan through Analyst Reports.
- Among information obtained from Issuers relating to undisclosed earnings for accounting periods,
there is a serious risk that information that is not publicly available could fall into the category ofMaterial Information, as stated above, and thus Analysts are not permitted to communicate thesaid information to Investors, etc., irrespective of whether or not it constitutes (or contains)
corporate-related information.
- If information among undisclosed information obtained from Issuers is not publicly available andfalls into the category of Material Information, Analysts may, if provision therefor is made byinternal rules, communicate the said information to in-house officers and employees inaccordance with the prescribed procedures.
- If information obtained from Issuers other than “information relating to undisclosed earnings foraccounting periods” does not fall into the category of Material Information, with regard to thecommunication of that information and of analyses, evaluations, etc., of individual companies
based on that information to Investors, etc., by means other than Analyst Reports, that shall be
implemented in accordance with the rationale of types 5 and 6 in Section 5 (“Communication of
information by means other than Analyst Reports”: Types and the concepts behind them).
5. Communication of information by means other than Analyst Reports: Types and rationale[1] Communication of supplementary explanations of facts underlying Analyst Reports alreadysubject to Publication, etc.
If the information is explanations of the reasoning behind analyses, evaluations, etc., in Analyst
Reports and its content is not inconsistent with the content of Analyst Reports already subject to
Publication, etc., it is permitted to communicate it selectively to specific Investors, etc.
Rationale

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- The information (facts) used by analysts at the time of preparing Analyst Reports is by its very
nature considered not to be inconsistent with the content of the Analyst Reports, and thus even if
such information is not included in the Analyst Reports, it is considered to be acceptable tocommunicate it selectively to specific Investors, etc.
- If the information (facts) was not used at the time Analysts prepared Analyst Reports, andexplaining it would lead to the reaching of different opinions from analyses, evaluations, etc., inthose Analyst Reports, it is not considered permissible to communicate it selectively to specificInvestors, etc.
- Since this communication of information is explanatory with regard to Analyst Reports alreadysubject to Publication, etc., information (facts) that has become publicly available since the
Publication, etc. of the said reports do not fall into the category of being facts behind the said
Analyst Reports. In consequence, irrespective of whether analyses, evaluations, etc., in Analyst
Reports already subject to Publication, etc. and analyses, evaluations, etc., to be included in new
Analyst Reports are identical, if the said information is communicated selectively to specificInvestors, etc., that shall be handled in accordance with Section 5 [5].
[2] Communication of detailed analyses (supplementary explanations) for Analyst Reports alreadysubject to Publication, etc.
With regard to information in the form of basic data and commentary for analyses, evaluations,etc., included in Analyst Reports already subject to Publication, etc. that is not inconsistent
with the content of the said Analyst Reports, it is permitted to communicate it selectively to
specific Investors, etc.
Rationale- The data, etc., used by analysts at the time of preparing Analyst Reports is by its very nature
considered not to be inconsistent with the content of the Analyst Reports, and thus even if it is notincluded in the Analyst Reports, it is considered to be permissible to communicate it selectively
to specific Investors, etc.
- If the information comprises data, etc., that was not used at the time Analysts prepared Analyst
Reports, and explaining that would lead to the reaching of different opinions from analyses,
evaluations, etc., in those Analyst Reports, it is not considered permissible to communicate it
selectively to specific Investors, etc.
- Since this communication of information is explanatory with regard to Analyst Reports alreadysubject to Publication, etc., information (facts) that have become publicly available since the
Publication, etc. of the said reports do not fall into the category of being detailed analysis, etc. of

12the said Analyst Reports. In consequence, irrespective of whether analyses, evaluations, etc., in
Analyst Reports already subject to Publication and analyses, evaluations, etc., to be included in
new Analyst Reports are identical, if the said information is communicated selectively to specificInvestors, etc., that shall be handled in accordance with Section 5 [5].
[3] Communication of long-term analyses, evaluations, etc., not included in Analyst Reports alreadysubject to Publication, etc.
Unless the information content is in line with the scenarios included in Analyst Reports alreadysubject to Publication, etc., it is not permitted to communicate it selectively to specific Investors,
etc.
Rationale- With regard to long-term forecasts not included in Analyst Reports already subject to Publication,etc., since from the outside it would appear that Analysts are not conducting analyses or
evaluations, etc., in principle it is not considered permissible to communicate it selectively to
specific Investors, etc.
- With regard to a sense of direction of earnings over the long term based on assumptions thatfactor in publicly available information and are based on scenarios or analytical methods includedin Analyst Reports already subject to Publication, etc., exceptionally it would be considered to be
acceptable to communicate the information selectively to specific Investors, etc. However, if
analyses, evaluations, etc., that differ from the Analyst Reports were derivable from it, it would
not be considered permissible to communicate such information selectively to specific Investors,
etc.
- If analyses, evaluations, etc., from Analyst Reports already subject to Publication, etc. change, it
is recommended that Publication, etc. of new Analyst Reports be undertaken.
[4] Communication of analyses, evaluations, etc., for periods shorter than rating, etc., periods
included in Analyst Reports already subject to Publication, etc.
Unless the information is premised on the scenarios included in Analyst Reports already subject to
Publication, etc., it is not permitted to communicate it selectively to specific Investors, etc.
Rationale- It is possible, depending upon their content, that short-term analyses, evaluations, etc., notincluded in Analyst Reports already subject to Publication, etc. could affect the ratings, etc. ofAnalyst Reports already subject to Publication, etc., and thus in principle it is not considered
permissible to communicate such information selectively to specific Investors, etc.

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- Premised on there being no deviation from the scope of the scenarios (occurrence of events, risks,etc., referred to in Analyst Reports) included in Analyst Reports already subject to Publication,etc. with regard to matters whose duration is shorter than the aforesaid periods it is considered
permissible to communicate information selectively to specific Investors, etc.
- At times of short-term share-price fluctuations it is not considered permissible to issue comments
concerning analyses, evaluations, etc., of factors behind the fluctuations relating to the companies
concerned, share-price levels, or trading that are not included in Analyst Reports already subject
to Publication, etc.
[5] Communication of Issuers’ undisclosed information that is not included in Analyst Reports
already subject to Publication, etc.
If information obtained from Issuers that is not publicly available information falls into thecategory of Material Information, it must not be communicated selectively to specific Investors,
etc.
Rationale- In particular with regard to information relating to undisclosed earnings for accounting periods,
even if it is not categorized as corporate-related information there is a strong probability that it
will fall into the category of Material Information, and since there is thus a strong possibility that
it will suggest modification of the content of Analyst Reports already subject to Publication, etc.
(the Publication, etc. of regular or occasional new Analyst Reports, and changes to analyses,
evaluations, etc., in Analyst Reports already subject to Publication), it is not considered to bepermissible to communicate it selectively to specific Investors, etc.
- In addition, if the content of quantitative information other than that relating to undisclosed
earnings for accounting periods that enables earnings to be estimated easily is such that it cangive Investors, etc., pointers to the progress of, and prospects for, earnings, and there is thus astrong possibility that it will suggest modification of the content of Analyst Reports alreadysubject to Publication, etc., it is not considered permissible to communicate it selectively to
specific Investors, etc.
- If information that is not publicly available that forms part of undisclosed information obtained
from Issuers contains no content able to give Investors, etc., pointers to the progress of, andprospects for, earnings, does not affect analyses, evaluations, etc., in Analyst Reports, and does
not create a need to undertake Publication, etc. of new Analyst Reports, it is considered
permissible to communicate it selectively to specific Investors, etc. under the supervision of
appropriate internal administration systems. In this case, too, the same content should be

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communicated to all recipients of the information.
- As provided in 3 (Matters requiring attention relating to the obtainment of information from
Issuers by Analysts) [1], interviews, etc. with Issuers conducted jointly with Investors, etc., arenot subject to in-house examination as to matters such as whether they fall into the category ofMaterial Information, and risk being deemed the equivalent of communicating the said
information directly to specific Investors, etc. In view of this, irrespective of whether they havecompanions (Investors, etc.), Analysts shall not conduct interviews, etc. with Issuers for“information relating to undisclosed earnings for accounting periods.” It is also essential to takecare that in cases in which they accompany Investors, etc., for other purposes, the companions(Investors, etc.) do not conduct interviews, etc. with Issuers regarding “information onundisclosed earnings for accounting periods.”[6] Communication of analysis, evaluations, etc., of Issuers’ information that differ from thoseincluded in Analyst Reports already subject to Publication, etc.
Irrespective of whether or not Issuers’ information is publicly available, until such time as
Publication, etc. of new Analyst Reports is undertaken on the basis thereof, Analysts’ analyses,
evaluations, etc., of that information are not permitted to be communicated selectively to specificInvestors, etc.
Rationale- In cases in which there is a strong possibility that Investors, etc., will learn of Analysts’ analyses,
evaluations, etc., of Issuers’ information and will conclude that changes are to be made to thecontent of Analyst Reports already subject to Publication, etc., those Analysts’ analyses,
evaluations, etc., should be made available only through the Publication, etc. of new Analyst
Reports.
- With regard to Issuers’ information about sudden occurrences of events and that becomes publicly
available, if it differs from analyses, evaluations, etc., included in Analyst Reports already subject
to Publication, etc., it is considered acceptable to explain the facts but to exclude Analysts’
analyses, evaluations, etc. However, in these cases too, the same content should be communicatedto all recipients of the information.
- There is a strong probability that analyses, evaluations, etc., of information relating toundisclosed earnings for accounting period will fall into the category of Material Information,and thus it is not considered to be permissible to communicate it selectively to specific Investors,
etc.

15

- With regard to analyses, evaluations, etc., of quantitative information other than that relating toundisclosed earnings for accounting periods that enables earnings to be estimated easily, if its
content is such that it can give Investors, etc., pointers to the progress of, and prospects for,earnings, and there is thus a strong possibility that it will fall into the category of Material
Information, the communication of the information shall be implemented by the Publication, etc.
of an Analyst Report. For details of inserting content in Analyst Reports, please refer to Section 4(Rationale of the management of undisclosed information obtained from Issuers and its
communication to Investors, etc.) [2] (Communicating undisclosed information by the
Publication, etc. of Analyst Reports, etc.) It is not considered permissible to communicate theinformation selectively to specific Investors, etc., by means other than Analyst Reports.

16

For Reference
Examples of information that it is believed to be acceptable for Analysts to communicate
selectively to specified Investors, etc., by means other than Analyst Reports
The concrete examples set out below are examples of information within the six types ofcommunication of information laid down in these Guidelines. Each example is premised on the“rationale” section included under each type, and thus judgments must not be made solely on thebasis of each example, but only with reference to the rationale as well.
1. In the category “Communication of supplementary explanations of facts underlying Analyst
Reports already subject to Publication, etc.” examples of information that is considered
permissible to communicate selectively to specific Investors, etc.
(1) Content of Issuers’ Annual Securities Report, content of Issuers’ websites. In addition, as set
out specifically below- Content of press releases issued by Issuers, content of comments made by Issuers and material
used at company briefings (excluding “information relating to undisclosed earnings foraccounting periods’ and ‘quantitative information other than that relating to undisclosed
earnings for accounting periods that enables earnings to be estimated easily”)- Characteristics of goods and services (strengths/weaknesses), market share (industry ranking),
historical share fluctuations- Content about Issuers from past newspaper articles and from Analyst Reports already subject
to Publication, etc.
- Assumptions on which analyses, evaluations, etc., are based (macro and industrial
environment, individual company assumptions are covered in the next section)- Preliminary figures, etc., indicating interim progress(2) Publicly available information (Information made publicly available by Issuers, macro andindustry statistical information)(3) Publicly available corporate information and statements by management personnel(4) Historical data
(5) News articles(6) Generally available information (e.g. data provided by information vendors)

17

(7) Detailed explanations of disclosed facts included in Analyst Reports, explanations of figures
published by Issuers, market data, models, etc., upon which Analyst Reports are based(8) Information about investor sentiment and markets(9) Explanations of the grounds for evaluations, etc., provided they are not inconsistent with
Analyst Reports(10) Analysts’ predictions and forecasts upon which analyses, evaluations, etc., are premised(11) Supplementary explanations of analyses of fundamentals, etc.
(12) Information with content that Analysts themselves have researched and analyzed, evaluated,etc., for the preparation of Analyst Reports, and that forms the basis of the content of Analyst
Reports, or content that can be explained based on the data
(13) Detailed discussion, etc., of content of Analyst Reports, and communication consistent with
Analysts’ opinions already subject to Publication, etc.
(14) For investors, the facts that are fundamental to the analysis, evaluation, etc., of target
companies, including information on the companies’ accounting standards, business activities,
and industry position
2. In the category “Communication of detailed analyses (supplementary explanations) for
Analyst Reports already subject to Publication, etc.,” examples of information that is
considered permissible to communicate selectively to specific Investors, etc.
(1) Assumptions used for forecasts of earnings that are not included in Analyst Reports (production
volume, raw-material prices, exchange-rate assumptions, detailed individual forecasts ofproduct unit prices, etc.)(2) Detailed breakdowns of actual and forecast figures for sales, profits, etc., included in Analyst
Reports(3) If increases in shareholding ratios resulting from TOBs are forecast, and the results of financial
simulations of cases of 50% plus one share and of 100% are included only in Analyst Reports,
the results of a simulation of a case of a 75% shareholding ratio18

(4) With regard to earnings forecasts included in Analyst Reports, detailed figures for eachbusiness activity and the product price-setting forecasts, etc., on which they are premised(5) Explanations of charts, etc., contained in Analyst Reports, and details of the figures on which
they are based, etc.
(6) Publicly available corporate information and statements by management personnel(7) Historical data
(8) News articles(9) Generally available information (e.g. data provided by information vendors)(10) Analysis and evaluation methods (earnings models, sensitivity, corporate value, share-priceforecast, market trends [supply and demand, prices])(11) Information about investor sentiment and markets(12) Supplementary data concerning Analysts’ opinions already subject to Publication, etc., anddata concerning more-detailed models(13) Supplementary explanations of material that are not inconsistent with Analyst Reports(14) Information with content that Analysts themselves have researched and analyzed, evaluated,etc., for the preparation of Analyst Reports and forms the basis of the content of Analyst
Reports, or content that can be explained based on the data
(15) Content that comprises degrees of progress made, breakdowns, etc., in cases in which thepremises (fundamentals) of Analyst Reports are the reports’ detailed analyses.
(16) Detailed discussion, etc. of content of Analyst Reports, and communication consistent with
Analysts’ opinions already subject to Publication, etc.
(17) Research models upon which analyses, evaluations, etc., are based. Presentation materials
based on Analyst Reports

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3. In the category “Communication of long-term analyses, evaluations, etc., not included inAnalyst Reports already subject to Publication, etc.,” examples of information that is
considered permissible to communicate selectively to specific Investors, etc.
(1) With regard to long-term earnings forecasts for periods not included in Analyst Reports,
directional trends of business performance based on information that has become well-known
and common knowledge as information that will realize after the relevant period (see below).
However, this shall be limited to information that does not change analyses, evaluations, etc.;
the same shall apply hereinafter.
- Macro events such as change to tax systems- Events, cycles, or trends unique to the industries to which the relevant Issuers, etc., belong- Factors unique to the relevant Issuers, etc. (patent expirations, hot pursuit by Chinese
manufacturers, growth in demand for next-generation products, etc.)(2) Earnings forecasts based on the premise that sales trends included in Analyst Reports alreadysubject to Publication, etc. will continue thereafter. (For example, if the average annual rate ofsales growth is 5% up to the third year, if the same rate of 5% average annual growth continues
from the fourth year onward, a 3% average annual increase in operating profit is forecast.)(3) Estimates based on the premise that a trend of improvement in profit ratios included in Analyst
Reports already subject to Publication, etc. will continue thereafter. (For example, when it isstated that operating profit is forecast to improve by 2% per year for the next three years, if theoperating profit ratio also increases by 2% per year from the fourth year onward, the mediumterm operating profit ratio is expected to be X%, so if sales revenue totals Y billion yen,operating profit is estimated at Z billion yen.)(4) Analyses of historical information over long periods that does not include forecast figures(5) Qualitative impressions and earnings forecasts, etc., not accompanied by price objectives, incases in which trends are identical with those stated in Analyst Reports already subject to
Publication, etc.
(6) Information logically derived from Analyst Reports already subject to Publication, etc., andwhose content is identical for all recipients
4. In the category “Communication of analyses, evaluations, etc., for periods shorter thanrating, etc., periods included in Analyst Reports already subject to Publication, etc.,”
examples of information that is considered permissible to communicate selectively to20

specific Investors, etc.
(1) Information that mentions analyses, evaluations, etc., with regard to share-price fluctuations
that have occurred up to and including the present day. If an event has occurred that is describedin an Analyst Report already subject to Publication, etc. as a catalyst risk, analyses, evaluations,etc., thereof, provided that they are not inconsistent with the content of Analyst Reports alreadysubject to Publication, etc.; the same shall apply hereinafter(2) Content that comprises degrees of progress made, breakdowns, etc., in cases in which thepremises (fundamentals) of Analyst Reports already subject to Publication, etc. are the reports’short-term analyses, evaluations, etc. (quarterly earnings, etc.)(3) Short-term analyses, evaluations, etc., provided at the request of Investors, etc., that are basedon Analyst opinions already subject to Publication, etc. or stay within the limits that is out of
impacting Analyst opinions already subject to Publication, etc. (For example, the provision of
factual information or information concerning events that will occur in the near future.)(4) Scenario analyses conducted on the basis of certain conditions adhered to jointly by Analysts
and Investors, etc.
(5) Information that refers to short-term upside/downside risk in a manner that is not inconsistent
with Analyst Report ratings (continuation of Analyst Report ratings)
5. In the category “Communication of Issuers’ undisclosed information that is not included inAnalyst Reports already subject to Publication, etc.,” examples of information that is
considered permissible to communicate selectively to specific Investors, etc.
(1) Information that comprises detailed segment-specific information, etc., provided separately byIssuers and itemized details of information that has become publicly available, and does notsuggest changes to the content of Analyst Reports already subject to Publication, etc.
(2) With regard to information that has become publicly available, the fact that it has become
publicly available. (With regard to Analysts’ opinions relating to the said information, they are
addressed in 6 below. With regard to information from rumors, etc., on the Internet or in themarkets, etc., where information providers are dubious and lacking in credibility, it should not
be communicated to Investors, etc., irrespective of its content.)(3) If, in relation to their earnings, the state of progress of companies’ annual plans has become21

publicly available, the facts that it is consistent with Analysts’ analyses, evaluations, etc. (ordiffer from those analyses, evaluations, etc.)(4) The fact that points of difference from comments made by Issuers at previous briefings havebeen identified during interviews, etc. with those Issuers, or that it has been confirmed that there
have been changes in content since the time of the previous comments, provided that the
information does not suggest changes to the content of the Analyst Reports already subject to
Publication, etc.
6. In the category “Communication of analyses, evaluations, etc., of Issuers’ information thatdiffer from those included in Analyst Reports already subject to Publication, etc.,” examples
of information that is considered permissible to communicate selectively to specificInvestors, etc.
(1) If information that has become publicly available (excluding ‘information relating toundisclosed earnings for accounting periods’ and ‘quantitative information other than that
relating to undisclosed earnings for accounting periods that enables earnings to be estimatedeasily,’) has been envisaged in Analyst Reports already subject to Publication, etc., and there
are no plans to amend those Analyst Reports already subject to Publication, etc., communication
by means other than Analyst Reports to the effect that the envisaged information has (or hasnot) become fact(2) Impressions and comments with regard to Issuers information, to the extent that this does notsuggest changes to the content of Analyst Reports already subject to Publication, etc.
(3) With regard to information that has become publicly available, the fact that it has become
publicly available. In addition, if observational reporting appears in newspapers or other media,
the fact that that has occurred(4) Statements to the effect it is not currently known whether or not the content of Analyst Reports
already subject to Publication, etc. is to be changed, or that the question of whether or not tomake changes is under consideration. It is not permitted to communicate that a change is to be
made. It is recommended that Publication, etc. of statements to these effects be undertaken insimple Analyst Reports.
(5) Information comprising simple calculations of forecasts of earnings, etc., on the basis of
information that has become publicly available and of the content of Analyst Reports alreadysubject to Publication, etc. (calculation methods, trends, etc.), to the extent that they do not22suggest changes to the content of Analyst Reports already subject to Publication, etc.
(6) Supplementary explanations for Issuer information to the extent that they do not suggest
changes to the content of Analyst Reports already subject to Publication, etc.

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