What is the most efficient way to translate IR? We also introduce points to consider when choosing a translation service.

1. What is IR?

Investor Relations, or IR for short, refers to the activities that companies engage in to build relationships with investors. Companies provide appropriate information to shareholders and potential investors, such as financial status, management strategies, and business outlook, in order to make investment decisions. This includes holding earnings briefings, issuing annual reports, and conducting individual meetings with investors by IR personnel, among other methods. The purpose of IR is to increase transparency of the company and build trust with investors, ultimately aiming to improve the company's value. Additionally, through IR, companies can receive feedback from investors and use it to improve their management.

 

In recent years, corporate social responsibility and environmental issues have become areas of concern for investors, so IR targets not only financial information but also non-financial information.

2. The Need for IR Translation

2-1. Progress of Globalization

As globalization progresses, companies are actively expanding their business beyond borders. In order to enter overseas markets and raise international capital, effective communication with overseas investors is essential. The financial situation and management strategy of a company are important factors for investors to make investment decisions. However, language barriers can make it difficult for accurate information to be conveyed to overseas investors.

 

Therefore, it is essential for companies to provide information in foreign languages, including English. Specifically, annual reports, press releases, IR materials, etc. are created in foreign languages and disseminated to overseas investors.

 

In addition, we also conduct activities such as creating financial statements based on international accounting standards and holding IR presentations in foreign languages. Through these efforts, companies are able to accurately communicate their strengths and growth strategies to overseas investors. As a result, they can attract investments from abroad and achieve global fundraising.

2-2. Diversification of Investor Base

In recent years, there has been a diversification of investor base. While institutional investors used to be the main players, the presence of individual investors has been increasing. Individual investors now have easier access to the stock market due to the spread of the internet and the improvement of convenience in online trading.

 

In addition, with the environment now in place for even small amounts to be invested, more individuals have become interested in investing. As the investor base becomes more diverse, companies are forced to reconsider their methods of information dissemination. Due to differing needs and levels of understanding, both institutional and individual investors require tailored information. Furthermore, with the advancement of globalization, it is necessary to also focus on foreign investors, not just domestic ones. In order to provide fair and transparent information to a wide range of investors both domestically and internationally, it is essential to communicate in multiple languages.

2-3. Mandatory Disclosure of English Text

The Tokyo Stock Exchange will require listed companies on the Prime Market to disclose their financial statements in English starting from April 2025. This is aimed at enhancing the attractiveness of the Japanese market to foreign investors and attracting investment funds as globalization continues to advance. Disclosure of financial summaries and timely disclosure information in English will be mandatory. In the future, it is also being considered to include securities reports in this requirement.

3. Common Challenges in IR Translation

3-1. Inability to secure translation and checking capabilities necessary for English disclosure with in-house personnel.

It is not easy to secure personnel with advanced translation skills and specialized knowledge necessary for English disclosure in IR translation within the company. In order to accurately translate specialized terms and expressions related to finance and law, a deep understanding of these fields is required.

 

In addition, in the process of checking after translation, it is necessary to have the ability to understand the original intention and confirm that there are no mistranslations or unnatural expressions. Developing and securing personnel with such advanced translation and checking abilities within the company is a challenge for many businesses.

3-2. There may be cases where we cannot meet the disclosure deadline.

IR materials need to be disclosed promptly in accordance with important events such as financial announcements. However, due to the time-consuming nature of translation work, it may not be possible to meet short disclosure deadlines.

 

In particular, when outsourcing translation to external parties, it may take time to adjust schedules and communicate, increasing the risk of delays in delivery. When translating in-house, there is a possibility of being able to respond flexibly even with short deadlines, but the challenge remains of securing personnel.

 

3-3. Temporary translation is possible, but there is no plan for updates or continuation.

IR materials need to be updated regularly, not just once they are created. However, if there is no established translation system within the company, it can be difficult to keep up with continuous updates. Additionally, there is a risk of losing consistency in terminology and expressions every time the translator changes.

3-4. Concerns about inadequate checking system and risks of lawsuits due to mistranslations, etc.

To ensure the quality of translated materials, a strict checking system is essential. In particular, for important documents such as financial reports, mistranslations can lead to legal issues and potential lawsuits. Without a thorough checking system in place, there is a high risk of serious consequences for the company, such as the spread of misinformation and loss of trust from investors. To avoid such risks, it is necessary to strengthen the quality control process for translations.

3-5. Organization of existing English documents within the company is also necessary.

When translating IR materials, it is important to maintain consistency with existing English documents. However, if internal English documents are not organized, not only will the translation process become inefficient, but there is also a possibility of inconsistent terminology and expressions. Therefore, in order to efficiently translate IR materials, organizing existing internal documents is also an important task.

4. Points for Efficient and Accurate IR Translation

4-1. Maintenance of a common terminology glossary within the company

We create a unified terminology list for commonly used technical terms and frequently used words within the company, so that all parties can have a common understanding. This will help streamline internal communication and improve efficiency in document creation.

 

In addition, it will be less confusing when communicating with external contractors as the meaning and usage of terms will be clearer. It is important to regularly update the glossary to maintain the latest state. When using translation tools, make use of the glossary function to ensure consistency in terminology within the translated text.

4-2. Selection of Appropriate External Contractors

When outsourcing IR translation, we clearly communicate the expected quality level while providing specific examples. If there are previous translations, we will provide that data. We also consider the scope of outsourcing and may consider internalizing some aspects if necessary. We confirm the schedule and ensure that enough time can be allocated before the deadline.

4-3. Consideration of Translation Process

If there is no room in the schedule, we will consider a process of translating the draft version first and then the final version. By using a database called translation memory, which is built into translation support tools (CAT tools), you can easily reuse previously translated sentences. Therefore, if you translate the draft version beforehand, you can simply translate the differences in the final version to complete the document. For more information on CAT tools, please see the following article.

 

What is a CAT tool? Explanation of benefits and drawbacks

4-4. Consideration of Utilizing Machine Translation

By using machine translation, translation time can be shortened. To do this, first check the accuracy of machine translation and consider whether it can be used for IR translation. It is also important to have a terminology function that can accurately translate proper nouns such as service names and product names. Avoid using machine translation results as is and always have a human check it (this process is called post-editing). This allows for increased work efficiency while ensuring a certain level of quality. However, caution is necessary when using free machine translation services as it may lead to information leakage. For more information on the confidentiality policy of DeepL, a highly rated machine translation service, please refer to the article below.

 

Is confidentiality maintained with DeepL translation? What about security?

5. Summary

In this article, we explained what IR is, the challenges of translation, and efficient methods as the need for IR translation increases. With globalization and diversification of investors, providing information in foreign languages has become essential. However, there are also challenges such as securing translation capabilities within the company, responding to short deadlines, and continuous updates. To efficiently translate IR, it is important to establish a terminology glossary within the company, select appropriate external vendors, and utilize machine translation.

Human Science offers automatic translation software MTrans for Office and MTrans for Trados, which can utilize DeepL and ChatGPT. Since it is connected to the API, you can use DeepL and ChatGPT without worrying about information leakage. ChatGPT can not only be used as a translation engine, but also for transcribing, rewriting, and proofreading sentences depending on the prompt. MTrans for Office and MTrans for Trados also offer a 14-day free trial. Please feel free to contact us.

Features of MTrans for Office

① Unlimited number of files and glossaries that can be translated with a fixed fee
② Translate with one click from Office products!
③ Secure API connection for peace of mind
・For customers who want further enhancement, we also offer SSO, IP restrictions, etc.

④ Japanese language support by Japanese companies
・Possible to respond to security check sheets
・Payment by bank transfer is available

MTrans for Office is an easy-to-use translation software for Office.

Features of MTrans for Trados

1. ① Simultaneous translation using multiple machine translation engines such as DeepL and Google.
2. ② Automatically apply terminology to machine-translated text. Centrally manage terminology glossaries regardless of machine translation engine.
3. ③ String replacement, regular expression replacement, automatic correction of translation style, notation, and expression using ChatGPT
4. ④ Automatic Correction of Fuzzy Matches in Translation Memory
5. ⑤ Maintain original formatting and tags during machine translation

 

What is the machine translation solution MTrans for Trados for Trados?