1 TOKYO STOCK EXCHANGE’s XBRL project AOSEF Market Data & Technology Collaboration Workshop 2007 Nov. Ver.1.0

2 Overview of the disclosure system in Japan Timely disclosure (based on the rules of the stock exchange) Statutory disclosure (based on the Securities and Exchange Law) Disclosure System

3 Statutory DisclosureTimely Disclosure ・ Securities report (within three months subsequent to balance sheet date) ・ Semi-annual report (within three months subsequent to semi- annual balance sheet date) ・ Quarterly report (under consideration to make the report statutorily mandatory) ・ Extraordinary report (without delay) ・ Preliminary report of Earnings Digest (average time required: about 43.5 days) r ・ Semi-annual Preliminary report of Earnings Digest (average time required: about 43.4 days) ・ Quarterly report (average time required: about 33.9 days) ・ Decisions and occurrence (promptly) Comparison between statutory and timely disclosure

4 (1)Submit and register disclosure data to the TSE online (2)Give explanations of disclosure data to the TSE over the phone (3) Output disclosure data on TDnet terminals set at media institutions (4) Obtain certificates (at any time after disclosure) (5) Enable the public to view disclosure data (TSE’s web site, TDnet database service) * The public can view the data on the TSE’s Web site ( or by using the database service. All Listed companies in Japan More than 4,000 companies Investors Contractors Media institutions,etc. Database Service Issue certificates Register Web Real-time service TDnet TDnet (Timely Disclosure network): 1998 Apr. ～

5 (1)Submit and register disclosure data to the FSA online (2) Output disclosure data on EDINET terminals set at the Local Finance Bureau. (3) Enable the public to view disclosure data (EDINET web site*) All public companies in Japan More than 12,000 companies Investors Register EDINET EDINET (Electronic Disclosure for Investors’ NETwork) :2001 Jun. ～ Local Finance Bureau EDINET Web Site

6 Flow of information disclosure through TDnet and EDINET Statutory disclosure (Financial Services Agency) Listed company Timely disclosure (TSE) Investors Information available for the past a month: free of charge Information available for the past five years: charged Internet, TV broadcasting, information terminals Internet on a real- time basis Timely Disclosure network Electronic Disclosure for Investors' NETwork Internet on a real- time basis Press and media companies, etc. Timely disclosure information access services TDnet DBS TDnet EDINET Financial Services Agency website Local Finance Bureaus Available for public inspection at reading room ・ Securities report ・ Current report, etc. ・ Earnings digest ・ Timely disclosure report, etc.

7 Effect of implementing XBRL for financial information  Investors and analysts (improved secondary use of financial information)  They can easily process and analyze data without re-entering them, as they can download XBRL data from TDnet and feed it directly into their relevant systems.  saves time and avoids clerical errors in re-entering or processing the data.  They can process large volumes of financial information.  Listed companies (shorter time and more efficiency achieved for preparing disclosure data)  Shorter time for works in relation to financial documents  Prevention of mistakes during preparation thanks to logic accuracy checking function  Provision of detailed data to investors  Securities exchanges (improved accuracy and sophistication for management of listed companies)  Faster examination of submitted documents by applying automated logic accuracy checks  Provision of more accurate disclosure documents with sophisticated logic accuracy checks  Realization of sophisticated management of listed companies by capturing large quantities of detailed financial data in the system

8 Future image centering on the TSE XBRL technologies will be consecutively utilized to receive and deliver timely disclosure information. XBRL technologies will be consecutively utilized to provide timely disclosure information. In particular, the taxonomy for statutory disclosure operated by the Financial Services Agency (FSA) and the taxonomy for timely disclosure will be made consistent. Input by XBRL Listed companies Tokyo Stock Exchange Web Service Media institutions, etc. Output by XBRL Investors

9 Others (Text base) First page （ summary ） Foot notes Financial Statement Time table of implementing XBRL to Earning Digest XBRL ＰＤＦ XBRL 2nd step 2008 ～ Final step 1st Step (Current) PDF+CSV(summary) XBRL

10 Issues and solutions in implementation of XBRL to earnings digests (1)  Diversity of input forms Issue  Earnings digests prepared by listed companies have various items of account and layouts. Solution  Possible items of account to be entered can be displayed for respective entry cells of an input template by analyzing financial data based on past cases.  Possible multiple entry templates can be provided by analyzing the pattern of layouts based on past cases.  The preparer will be able to switch on and off entry fields.  Each listed company may have and manage its own taxonomy.

11 Issues and solutions in implementation of XBRL to earnings digests (2)  Issues in relation to rendering Issue  Display on the monitor of earnings digest with complicated forms  Printout in the same form as the current PDF file Solution  Rendering information to display the XBRL earnings digests in the similar layout to PDF file is to be set in the taxonomy.  Any data displayed based on the rendering information are converted into PDF form and provided to users.  Mitigation of workload for preparing entities Issue  Mitigation of complexity and redundancy of preparing XBRL data  Clarification of benefits for preparers in implementing XBRL Solution  Taxonomy common to EDINET and TDnet is to be applied and the registration method for each system is unified, resulting in unified management of financial data in Japan.  Instances in financial statements are automatically reflected as those in summary information.

12 Changes in works arising from implementation of XBRL to TDnet (prior to XBRL implementation) Investors EDINET TDnet Securities reports, etc. Earnings digests IR data Tax returns Various filing documents Websites e-tax Regulatory operated system National Tax Agency Regulatory agencies Press, Information vendors, analysts, etc. Listed companies

13 Changes in work arising from implementation of XBRL to TDnet (after implementation of XBRL) - unified preparation of information to be submitted- EDINET TDnet e-tax Listed companies Websites Regulatory operated system Investors National Tax Agency Regulatory agencies Press, Information vendors, analysts, etc.

14 Changes in work arising from implementation of XBRL to TDnet (after implementation of XBRL) -one-stop filing- Corporate information dissemination system Listed companies Websites Press, Information vendors, analysts, etc. Investors National Tax Agency Regulatory agencies

15 Time table for implementation of XBRL project to TDnet  Renewal of XBRL site (Oct. 2007)  The TSE has provided to data users XBRL data prepared based on the financial data for fiscal 2005 ～  The TSE has publicly made the new TDnet taxonomy available to users and consider their responses, thus enhancing the quality of the taxonomy.  Test operation of new TDnet (May 2008)  The TSE will ensure a smooth transition to the new system by providing the system to preparers in advance.  Service in : new EDINET (April 2008)  Service in : new TDnet (July 2008)

16 Thank you for your kind attention.