Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

Independent Leading Corporate Governance Research

Metrical Inc

METRICAL INC. is an independent leading Corporate Governance research firm in Japan where Corporate Governance is increasingly recognized as an important element on corporate management in these days. Thus, CG research and solutions would become an essential component of global capital markets and play important to contribute to transparency of the markets and maximize shareholders’ value in Japan. 

METRICAL INC. provides Corporate Governance research and analysis including rating services, and  also offers investment research and IR services with solutions and customized profound research on CG and IR issues.

<ul>
<li>For dialogue with shareholders, annual securities reports should be disclosed in English for overseas investors, who are eager to request the pre-AGM submission and have high demand for this information.</li>
<li>To change a company to a mindset of dialogue with shareholders rather than controlling AGM, it needs to have a successful experience in converting management to create value through dialogue.</li>
<li>It'll be interesting to see if the traditional values of companies, which has been accustomed to management that does not face shareholders, can be changed in the coming years.</li>
</ul>


For dialogue with shareholders, annual securities reports should be disclosed in English for overseas investors, who are eager to request the pre-AGM submission and have high demand for this information.
To change a company to a mindset of dialogue with shareholders rather than controlling AGM, it needs to have a successful experience in converting management to create value through dialogue.
It'll be interesting to see if the traditional values of companies, which has been accustomed to management that does not face shareholders, can be changed in the coming years.


Not the Timing of Annual Securities Report Disclosure, but Rather Company Management Objectives

<ul>
<li>It is good to see that affirmative action has increased the number of women managerial positions in ITOCHU. This is presumably due to the increase in foreign ownership.</li>
<li>The non-statutory executive officers are not in a legally responsible position and are not involved in management decisions. 2 female independent non-executive directors do not have a management background.</li>
<li>Looking at the board compositions, one notices many issues, but AGMs of many companies are concentrated in June, making it difficult to take the time to scrutinize the convocation notices.</li>
</ul>


It is good to see that affirmative action has increased the number of women managerial positions in ITOCHU. This is presumably due to the increase in foreign ownership.
The non-statutory executive officers are not in a legally responsible position and are not involved in management decisions. 2 female independent non-executive directors do not have a management background.
Looking at the board compositions, one notices many issues, but AGMs of many companies are concentrated in June, making it difficult to take the time to scrutinize the convocation notices.


Is Now Time to Move Forward with Efforts to Raise % Female Board Directors, Even Matching Numbers?

<ul>
<li>The biggest difference between founder family companies and others is the shareholding, and the presence of certain percentage of founder family's equity would have positive impact on management and performance.</li>
<li>When the founding family is a major shareholder, they can manage the company from the same perspective as shareholders, sharing the same goal of maximizing corporate value with them.</li>
<li>A company with shareholders with equity interests that exceed a certain level of influence cannot manage without regard to its shareholders. MBOs are also expected for founder family companies.</li>
</ul>


The biggest difference between founder family companies and others is the shareholding, and the presence of certain percentage of founder family's equity would have positive impact on management and performance.
When the founding family is a major shareholder, they can manage the company from the same perspective as shareholders, sharing the same goal of maximizing corporate value with them.
A company with shareholders with equity interests that exceed a certain level of influence cannot manage without regard to its shareholders. MBOs are also expected for founder family companies.


A Company that Performs Well Has Shareholders with Influential Equity Interests

Asia L/S Equity PM/Macro/Thematic Idea Generation

Rikki Malik

Cross Asset Strategy

<ul>
<li>A review of recent events/data impacting our investment themes and outlook</li>
<li>What are major global bond markets telling us about the world?</li>
<li>We look at potential beneficiaries  of the next wave of inflation </li>
</ul>


A review of recent events/data impacting our investment themes and outlook
What are major global bond markets telling us about the world?
We look at potential beneficiaries  of the next wave of inflation 


Overview #27 – The Big Beautiful Tragi-Comedy Continues

<ul>
<li>Since most Japanese companies at this point have more cash on hand than they need, it is only natural that they will step up shareholder returns, including share buybacks.</li>
<li>The reason why many companies have more cash on hand than necessary due to lack of investment for growth is because they do not have a disciplined cash allocation.</li>
<li>If the company does not have a disciplined cash allocation, share repurchases that lead to allocations to the most effective investments at the investor's discretion are welcome to the investor.</li>
</ul>


Since most Japanese companies at this point have more cash on hand than they need, it is only natural that they will step up shareholder returns, including share buybacks.
The reason why many companies have more cash on hand than necessary due to lack of investment for growth is because they do not have a disciplined cash allocation.
If the company does not have a disciplined cash allocation, share repurchases that lead to allocations to the most effective investments at the investor's discretion are welcome to the investor.


Without a Disciplined Cash Allocation in a Company, Share Repurchases Are Welcome to Investors

Japan

The TOPIX, also known as the Tokyo Stock Price Index, is a capitalization-weighted index of all companies listed on the First Section of the Tokyo Stock Exchange. The index is supplemented by the subindices of the 33 industry sectors. The index calculation excludes temporary issues and preferred stocks, and has a base value of 100 as of January 4, 1968.

TSE Tokyo Price Index TOPIX (TPX INDEX)

Not the Timing of Annual Securities Report Disclosure, but Rather Company Management Objectives

I would like to discuss the issues on the April 21 Nikkei article, “Annual securities reports as a catalyst for a market in dialogue.”

Metrical Inc

Is Now Time to Move Forward with Efforts to Raise % Female Board Directors, Even Matching Numbers?

I would like to discuss the April 21 Nikkei article, “ITOCHU Corporation Approaches 30% of Female Board Members with a ‘Strong Medicine,’ One Year...

Metrical Inc

A Company that Performs Well Has Shareholders with Influential Equity Interests

I would like to discuss the issues on the issues discussed in the April 21 Nikkei article, “40% of Japan's Founding Family Companies Have ROE Over...

Metrical Inc

Overview #27 – The Big Beautiful Tragi-Comedy Continues

More positive news for the Uranium Sector. Jefferies upgraded the Australian uranium miners yesterday with $PDN, $BOE and $DLY rallying 15-20% & up...

Rikki Malik

Not the Timing of Annual Securities Report Disclosure, but Rather Company Management Objectives

I would like to discuss the issues on the April 21 Nikkei article, “Annual securities reports as a catalyst for a market in dialogue.”

Metrical Inc

Is Now Time to Move Forward with Efforts to Raise % Female Board Directors, Even Matching Numbers?

I would like to discuss the April 21 Nikkei article, “ITOCHU Corporation Approaches 30% of Female Board Members with a ‘Strong Medicine,’ One Year...

Metrical Inc

A Company that Performs Well Has Shareholders with Influential Equity Interests

I would like to discuss the issues on the issues discussed in the April 21 Nikkei article, “40% of Japan's Founding Family Companies Have ROE Over...

Metrical Inc

Overview #27 – The Big Beautiful Tragi-Comedy Continues

More positive news for the Uranium Sector. Jefferies upgraded the Australian uranium miners yesterday with $PDN, $BOE and $DLY rallying 15-20% & up...

Rikki Malik

Without a Disciplined Cash Allocation in a Company, Share Repurchases Are Welcome to Investors

I would like to discuss the issues on the March 22 Nikkei Newspaper's In summary, I have considered the March 22 Nikkei Newspaper's...

Metrical Inc