Nomura Japan Equity Growth Potential Index

Global Markets Research
6 June 2022

EQUITY: EQUITY QUANTITATIVE RESEARCH (INDEX)

Index rulebook

Research Analysts
Japan index products
Index Operations Dept. - NSC
idx_mgr@jp.nomura.com

Nomura Japan Equity Growth Potential Index
The Nomura Japan Equity Growth Potential Index reflects the performance of stocks ofJapanese companies that have both room for growth in their current earnings and thepotential to achieve growth via improvement in their future capital efficiency (growthpotential). In recent years institutional investors have shown a great deal of interest in
improvements in companies' capital efficiency and sustained growth, and have been
aggressively working upon companies through engagement and the exercise of theirvoting rights. This index aims to systematically select companies that have the potential toachieve growth in response to such encouragement from investors, and to invest
efficiently in these companies in order to benefit from the returns that are likely to begenerated in future as a result of improvements in corporate value.
The "growth potential" in the name of the index is a concept that combines both an"abundance of capital", which enables companies to take steps aimed at achieving
growth, and "room for growth", which means that there is still room for further growth incorporate value. When screening for stocks that embody these two concepts, we look forcompanies with abundant capital that also have room for growth in earnings. For"abundance of capital", we screen using a composite score that reflects (1) cash (thehigher the cash to total assets ratio the better), (2) debt (the lower the debt ratio thebetter), and (3) free cash flow (the higher the free cash flow to total assets ratio thebetter). For "room for growth", we screen on the basis of (4) ROE (if ROE is too high thislimits the scope for it to rise in future) and (5) capital investment (if the capital investment
to sales ratio is too high this affects future capital investment aimed at growth).
Index characteristics• Companies' growth potential is assessed systematically using five factors based on
financial indicators.
• The index is reconstituted once a year.
• Ultra-large-cap stocks and financial stocks are excluded.
• To take investability into account, stocks are screened in terms of market cap andaverage daily turnover.
• The trading impact at the time of periodic index reconstitutions is reduced by lowering
the weighting of newly included stocks and some existing index constituents to below
the normal level.
• By capping individual stock weightings at 5%, extreme bias towards particular index
constituents is avoided.
Major changes/additions
As of 6 June 2022, changes have been made to the following rules: 2.1. Stock selection
universe, 2.2.1. Screening based on stock selection criteria - IV Abundance of capital(composite score).

Production Complete: 2022-06-22 14:26 UTC

See Appendix A-1 for analyst certification, important disclosures and the status of non-US analysts.

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Table of contents
1. Periodic reconstitutions
1.1. Periodic reconstitution date
1.2. Periodic reconstitution base date
1.3. Announcement of periodic reconstitutions
2. Stock selection
2.1. Stock selection universe[1]2.2. Stock selection method
2.3. Index composition
3. Unscheduled index reconstitutions
3.1. Response to stock swaps, stock transfers, mergers, etc
3.2. Removal of stocks
4. Calculation of index values
4.1. Index base date, base value, announcement date
4.2. Calculation of index market capitalization
4.3. Calculation of index values
4.4. Adjustment of base market capitalization
4.5. Adjustment to reflect change in index inclusion ratio
5. Data publication services
Policies with regard to NSC’s indices
Appendix A-1

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1. Periodic reconstitutions
1.1. Periodic reconstitution date
The periodic reconstitution date for the Nomura Japan Equity Growth Potential Index isthe first business day of September each year, and index reconstitution is carried out after
the close of trading on the business day preceding the periodic reconstitution date.

1.2. Periodic reconstitution base date
The periodic reconstitution base date is the last business day in July. Constituent stocks
and the number of shares in each constituent stock to be included in the index following
its periodic reconstitution are determined on the basis of calculations using data as of thereconstitution base date.

1.3. Announcement of periodic reconstitutions
As a general rule, an announcement will appear on our website at around 16:00 (JST) 10
business days before the periodic reconstitution, except in the case of unforeseen
circumstances or when information cannot be confirmed.

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2. Stock selection
2.1. Stock selection universe[1]The universe of stocks eligible for inclusion in the index, which we refer to as the stock
selection universe, comprises stocks listed on all stock exchanges in Japan [2] as of theend of March in the year preceding the periodic reconstitution base date that are in the
top 98% in terms of free float-adjusted market cap on 15 October in the year preceding
the periodic reconstitution base date (or the preceding business day if this is a nonbusiness day). However, of the stocks that were newly listed in or after April in the year
preceding the periodic reconfiguration base date, those in approximately the top 85% interms of free float-adjusted market cap and newly merged stocks are also included in thestock selection universe. Stocks that meet the following criteria as of the periodic
reconstitution base date are excluded from the stock selection universe.
• Equities other than common stock
As a general rule, only common stock is included in the stock selection universe.
However, exceptions to this rule will be made if deemed necessary.
• Stocks assigned for delisting
Stocks assigned for delisting are not included in the stock selection universe.
• Stocks under supervision[3]Stocks under supervision (examination) and stocks under supervision (confirmation) thatare not included in the index immediately before the periodic reconstitution are notincluded in the stock selection universe.
• TOB target companies[4]Stocks that are the target of tender offers (ie, TOBs) may be excluded from the stock
selection universe only if all of the following requirements are met:
1. the tender offer closing date falls between the periodic reconstitution base date andthe periodic reconstitution date;
2. the company conducting the tender offer plans to acquire all the outstanding shares inthe target company; and3. the company conducting the tender offer is planning to acquire all of the stock of thetarget company in exchange either for money or its own stock and the target company
agrees to the offer.
• Listed investment trusts/REITs• Foreign stocks
Stocks listed on foreign sections of Japanese exchanges or stocks deemed to beoverseas companies are excluded, even if these stocks are traded in the Japanesemarket.
• Others
Latent stock, warrants, and rights on them are excluded. The Bank of Japan is also
excluded.

1.
2.
3.
4.

The definition of the stock selection universe has changed in accordance with the changes to TSE market
classifications implemented in April 2022. Effective as of September 2022 periodic reconstitution.
Tokyo Stock Exchange (Prime Market, Standard Market, Growth Market, Tokyo PRO Market), Nagoya Stock
Exchange, Sapporo Securities Exchange, and Fukuoka Stock Exchange.
This rule applies from the September 2019 periodic reconstitution.
This rule applies from the September 2019 periodic reconstitution.

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2.2. Stock selection method
2.2.1. Screening based on stock selection criteria
Using data as of the periodic reconstitution base date, stocks are selected from the stock
selection universe (see 2.1. Stock selection universe) using stock selection criteria I to V,
in that order, as set out below.
I: Market capitalization
Stocks in the stock selection universe are ranked in order of free-float-adjusted market
capitalization[5] (highest first), and stocks ranking 51st to 1,000th are selected.
II: Sector
From the stocks selected under stock selection criterion I, stocks that come under the"banks", "securities and commodity futures", "insurance", and "other financing business"
sectors (based on the Tokyo Stock Exchange's 33 sector classifications) are excluded[6] .
III: Liquidity
From the stocks that meet stock selection criterion II, stocks that rank in the top 500 interms of average daily trading value over the most recent 60 business days are selected.
IV: Abundance of capital (composite score)
From the stocks that meet stock selection criterion III, stocks that rank in the top 250 interms of their composite score, which is based on equal weightings of standardized
scores for (1) cash to total assets ratio (most recent fiscal year), (2) debt ratio (mostrecent fiscal year), and (3) free cash flow to total assets ratio (reflecting the previous threefiscal years’ data), are then selected.
To calculate the composite score for each stock, the standardized score for each of thefollowing indicators is first calculated: (1) cash to total assets ratio (most recent fiscal
year), (2) debt ratio (most recent fiscal year), and (3) free cash flow to total assets ratio(reflecting the previous three fiscal years’ data). These three standardized scores are then
combined on an equally weighted basis and standardized again to generate thecomposite score. Stocks are screened on the basis of this composite score.
The standardized score for (1) cash to total assets ratio (most recent fiscal year) is
calculated according to the following definition[7] [8] :Standardized score for (1) cash to total assets ratio (most recent fiscal year)= ((1) for the stock in question - average of (1) for all stocks that meet stock selection criterion III) ÷ standard deviationof (1) for all stocks that meet stock selection criterion III
In the case of stocks for which the data required for standardization is not available, thestandardized score is zero. In addition, in calculating the average and standard deviation
for all stocks that meet stock selection criterion III, stocks for which the required data is
not available are excluded. Standardized scores for (2) debt ratio (most recent fiscal year)
and (3) free cash flow to total assets ratio (reflecting the previous three fiscal years’ data)
are calculated in the same way.

5.

6.
7.

8.

In order to reflect the number of shares that are likely to be available on the market and that investors regard
as targets for actual investment, we use the free-float-adjusted market capitalization, which we estimate
using [Nomura composite share price × (no. of shares outstanding for index calculation purposes - stableshareholding)]. We estimate the stable shareholding on the basis of the following data available on 15
October each year (or the preceding business day if this is a non-business day): major shareholder data,declarations of marketable securities holdings in companies' securities filings, and data published by stock
exchanges and companies (such as bulletins and prospectuses). The number of shares outstanding forindex calculation purposes is the number of shares outstanding after taking into account changes in thenumber of shares, in accordance with the timing of adjustments resulting from changes in capital structure in
4.4. Adjustment of base market capitalization.
Stocks may also be excluded with reference to the bank holding companies licensed lists and insurance
holding companies registered lists published by the FSA.
Scores are standardized by adjusting values so that they are in the range of -3 to +3. This is done by
reducing values higher than +3 to +3 (the maximum value) and raising values lower than -3 to -3 (theminimum value).
This definition has changed in accordance with the changes to TSE market classifications implemented in
April 2022. Effective as of September 2022 periodic reconstitution.

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When the three standardized scores are combined, on an equally weighted basis, thesign (ie, positive or negative) of the standardized score for (2) debt ratio (most recent
fiscal year) is reversed in order to assign higher rankings to lower values.
Composite score (before standardization)= standardized score of (1) cash to total assets ratio (most recent fiscal year) - standardized score of(2) debt ratio (most recent fiscal year) + standardized score of (3) free cash flow to total assets ratio(reflecting previous three fiscal years’ data).
V: Room for growth
From the stocks that meet stock selection criterion IV, those that are in the top 1/2 interms of (4) ROE (reflecting the previous three fiscal years’ data) or the top 1/3 in terms of(5) capital investment to sales ratio (reflecting the previous three fiscal years’ data) areexcluded.
The five indicators used in stock selection criteria IV and V—(1) cash to total assets ratio(most recent fiscal year), (2) debt ratio (most recent fiscal year), (3) free cash flow to total
assets ratio (reflecting previous three fiscal years’ data), (4) ROE (reflecting previous
three fiscal years’ data) and (5) capital investment to sales ratio (reflecting previous threefiscal years’ data)—are calculated using actual financial data available as of the periodic
reconstitution base date.
• Most recent fiscal year (A): most recently ended fiscal year for which financial data

are available as of the periodic reconstitution base date
• Fiscal year before most recent fiscal year (B): fiscal year for which the fiscal year-end

falls one year before the end of (A)• Fiscal year two years before most recent fiscal year (C): fiscal year for which the fiscal

year-end falls one year before the end of (B)However, if financial data for the most recent fiscal year are not available, no financial
data for the previous three fiscal years are used in the calculations. Also, if financial data
for the fiscal year before the most recent fiscal year are not available, financial data forthe most recent fiscal year alone are used. If financial data for the fiscal year two years
before the most recent fiscal year are not available, financial data for the most recent
fiscal year and the fiscal year before the most recent fiscal year are used.
Financial data are used according to the following order of preference: IFRS, US GAAP
(SEC), Japanese GAAP (consolidated), Japanese GAAP (non-consolidated).
The definitions of the five indicators—(1) cash to total assets ratio (most recent fiscal
year), (2) debt ratio (most recent fiscal year), (3) free cash flow to total assets ratio(reflecting previous three fiscal years’ data), (4) ROE (reflecting previous three fiscal
years’ data) and (5) capital investment to sales ratio (reflecting previous three fiscal years’data)—are as follows.
(1) Cash to total assets ratio (most recent fiscal year)
Cash and deposits divided by total assets. Stocks with a higher cash to total assets ratio
are ranked higher.
(2) Debt ratio (most recent fiscal year)
Outstanding interest-bearing debt divided by total shareholders' equity. Stocks with alower debt ratio are ranked higher.
(3) Free cash flow to total assets ratio (reflecting previous three fiscal years' data)
Total of cash flow from operating activities plus cash flow from investment activities[9]divided by total assets. Stocks with a higher free cash flow to total assets ratio are ranked
higher.
9.

For fiscal years ending before March 2000, we use net profit + depreciation - capital investment.

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To reflect data for the previous three fiscal years, we take the average of the data for themost recent fiscal year, the fiscal year before the most recent fiscal year, and the fiscal
year two years before the most recent fiscal year, weighted in a ratio of 3:2:1.
(4) ROE (reflecting previous three fiscal years' data)
ROE (net profit ÷ total shareholders' equity). Stocks with a higher ROE are ranked higher.
To reflect data for the previous three fiscal years, we take the average of the data for themost recent fiscal year, the fiscal year before the most recent fiscal year, and the fiscal
year two years before the most recent fiscal year, weighted in a ratio of 3:2:1.
(5) Capital investment to sales ratio (reflecting previous three fiscal years' data)
Capital investment[10] divided by sales. Stocks with a higher capital investment to sales
ratio are ranked higher. To reflect data for the previous three fiscal years, we take theaverage of the data for the most recent fiscal year, the fiscal year before the most recent
fiscal year, and the fiscal year two years before the most recent fiscal year, weighted in aratio of 3:2:1.
2.2.2. Determining which stocks to include in/remove from the index
When determining which stocks to include in/exclude from the index, the following threepoints are taken into account: (1) the results of the latest screening, (2) the results of theprevious screening, and (3) whether or not the stock was already included in the index asof the periodic reconstitution base date. Figure 1 shows how stocks are categorized andwhat the final decision is.
[Stocks that are newly added to the index]
Stocks that are not included in the index as of the periodic reconstitution base date andthat meet stock selection criterion V in the latest screening are added to the index.
[Stocks that are kept in the index]
Stocks that are included in the index as of the periodic reconstitution base date and thatmeet one of the conditions below are kept in the index.
• Stocks that met stock selection criterion V in the latest screening• Stocks that met stock selection criterion IV in the latest screening and also met stock

selection criterion V in the previous screening.
[Stocks that are removed from the index]
Stocks that are included in the index as of the periodic reconstitution base date that do
not meet the conditions for being kept in the index are removed from the index.

Fig. 1: Determining which stocks to include in/exclude from the index
Results of previous screening
Stock meets criterion V

Stock meets criterion V
Result of latest
screening

Stock meets criterion IV
Stock does not meetcriterion IV

Stock meets criterion IV(stock is alreadyincluded in index)

Stock meets criterion IV(stock is notincluded in index)○(Stock is kept in index)

Stock does not meetcriterion IV○(Stock is newly added to index)
×(Stock is not included in index)

Note: o indicates that stock is included in index, × indicates that it is not included in the index. Stocks for which there was no result in the previous screening are treated as being
the same as stocks that did not meet stock selection criterion IV in the previous screening.
Source: Nomura

10.

For periods up to and including the fiscal year that ended in September 2011, we use total tangible fixed
assets (current fiscal year) - total tangible fixed assets (previous fiscal year) + depreciation (current fiscal
year).

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2.3. Index composition
2.3.1. Determining basic weightings
A stock’s "basic weighting" is calculated as its weighting relative to the total free-floatadjusted market cap of all index constituents selected in accordance with 2.2. Stockselection method as of the periodic reconstitution base date.
2.3.2. Determining index weightings
Index weightings are calculated in accordance with steps (1) to (4) set out below.
(1) Index constituents are assigned a weighting based on their basic weighting inaccordance with the rules set out in Figure 2 (either 50% or 100%).
[Stocks that are newly added to the index]
For stocks that are newly added to the index, 50% of their basic weighting is used.
[Stocks that are kept in the index]
For stocks that are kept in the index and met stock selection criterion V in both the latest
screening and the previous screening, 100% of their basic weighting is used.
For stocks that are kept in the index and met stock selection criterion V in either the latest
screening or the previous screening, 50% of their basic weighting is used.
(2) Weightings of individual stocks are adjusted so that the total of their allocatedweightings comes to 100%.
(3) Individual stock weightings are capped at 5%, and if a stock has a weighting higher
than 5%, the surplus weighting, ie, the weighting over 5%, is allocated to stocks whose
weightings do not exceed 5%, in proportion to their weightings.
(4) Once weightings have been adjusted using the mechanism set out in (3) above so thatthey are all 5% or lower, these are the index weightings.

Fig. 2: Weighting allocated versus basic weighting
Results of previous screening

Result of latest
screening

Stock meets criterion V

Stock meets criterion IV(stock is alreadyincluded in index)

Stock meets criterion V

100% (stock is kept inindex)

50% (stock is kept inindex)

Stock meets criterion IV

50% (stock is kept inindex)

Stock does not meetcriterion IV

Stock meets criterion IV(stock is notincluded in index)

Stock does not meetcriterion IV

50% (stock is newly added to index)

×(Stock is not included in index)

Note: × indicates that stock is not included in the index. Stocks for which there was no result in the previous screening are treated as being the same as stocks that did not meetstock selection criterion IV in the previous screening.
Source: Nomura

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2.3.3. Number of shares included in index and index inclusion ratio for eachconstituent stock
The number of shares included in the index and the index inclusion ratio for eachconstituent stock are calculated using data as of the periodic reconstitution base date toensure that their index weightings are the same as those determined using the method
set out above.

Here, i indicates the i th constituent stock.
Nomura composite share price
The Nomura composite share price is the share price on the stock exchange selected foreach stock on the basis of trading frequency and volume over the preceding 60 businessdays. As a general rule, the exchange is selected on a daily basis. The share price isselected according to the following order of precedence:Contract price on selected exchange (see note) > standard price on selected exchange > Nomura composite shareprice on previous business day
Note: Priority is given to the special quotation price or continuous confirmed quotation price on the selected exchange ifthese are available.

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3. Unscheduled index reconstitutions
3.1. Response to stock swaps, stock transfers, mergers, etc
Temporary exclusions of stocks from the index are avoided and the consistency of index
constituents is maintained based on the following rules.
3.1.1. Stock swaps and absorption-type mergers
When a stock is delisted because it is about to become a wholly owned subsidiary or bemerged into another company (hereafter, merged company), it is included in the index
after delisting but removed from the index on the listing change date (or on the following
business day if this is a non-business day). Following its delisting, and until its removalfrom the index, the merged company's valuation is based on the market value of thecompany that will become the parent company or the surviving company multiplied by theexchange or merger ratio. Also, the index inclusion ratio of the parent company orsurviving company is changed on the listing change date (or on the following business
day if this is a non-business day) based on the exchange or merger ratio.
3.1.2. Stock transfers and consolidation mergers
When an unlisted parent company or surviving company in a merger (hereinafter,
surviving company) assumes the operations of another company and becomes listed after
a short period of time, the merged company is removed from the index on the new listingdate of the surviving company (or on the following business day if this is a non-businessday). The price used for the delisted merged company is the price on the day before itsdelisting. Also, the price used for the surviving company is the price on its new listingdate. However, if the surviving company will not be included in the index after periodic
reconstitution, the merged company is removed from the index on the delisting date.

3.2. Removal of stocks
3.2.1. Designation as securities to be delisted
Stocks designated as securities to be delisted are removed from the index four businessdays later (or on the following business day if this is a non-business day). However,stocks listed on more than one market and not designated for delisting on one or more of
the markets will not be removed.
3.2.2. Delisting
Stocks delisted for reasons other than those cited in 3.1. Response to stock swaps, stocktransfers, mergers, etc are removed from the index on the delisting date.
3.2.3. Marked loss of eligibility for inclusion in stock selection universe
In the case of an event that is regarded as having seriously damaged a constituent
stock's eligibility for inclusion in the stock selection universe as defined in 2.1. Stockselection universe above, the stock may be removed from the index following an official
announcement by the company in question, the stock exchange, or agovernment/regulatory agency. However, after the stock has been removed from theindex, if the grounds for the stock's removal from the index no longer apply as of theperiodic reconstitution base date, it will stop being regarded as ineligible for inclusion in
the stock selection universe.

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4. Calculation of index values
4.1. Index base date, base value, announcement date
The base date for the Nomura Japan Equity Growth Potential Index is 31 August 2001
and the value of the index on the base date (base value) is 10,000.
Publication of index values starts on 21 January 2019.

4.2. Calculation of index market capitalization

Here, i indicates the i th constituent stock and Σ indicates the sum for all index
constituents.

4.3. Calculation of index values
To prevent index values from being affected by changes in market capitalization notrelated to market fluctuations, eg, changes in capital structure and index constituents, theindex is calculated as follows[11] using base market capitalization. Here, t represents theday in question, and t-1 represents the previous business day.
Calculation of yen-denominated index values• Index excluding dividends• Index including dividends

11.

Adjusted market capitalization is calculated as the change in market capitalization resulting from a change incapital structure at an index constituent or a change in market capitalization resulting from a change in index
constituent stocks. Adjusted total dividends is calculated as the difference between forecast dividends andactual dividends if there is a difference between these two values.

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Method for reflecting dividends
For the index including dividends, dividend data are reflected on the ex-dividend date.
However, as the value of the dividend has not yet been determined on the ex-dividend
date, the company's announced dividend forecast is used (or Toyo Keizai’s dividend
forecast if the company has not announced its own dividend forecast)[12] In the event of adifference between the dividend forecast and the actual dividend, the base market
capitalization is adjusted on the last business day of the month of the company's earnings
announcement. However, if the company announces its earnings on the last business dayof the month, the adjustment is made on the last business day of the following month. In
addition, if dividend adjustment is required, the base market capitalization is adjusted on
the last business day of the month in which this became clear (if the day in which thisbecame clear is the last business day of the month, the base market capitalization isadjusted on the last business day of the following month).

12.

This rule applies starting from accounting periods ending on 31 December 2011. For accounting periods
before this, the actual dividend on the ex-dividend date is used.

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4.4. Adjustment of base market capitalization
The base market capitalization is adjusted as shown below in the event of a change incapital structure or in index constituent stocks (Figure 3). However, base market
capitalization is not adjusted to reflect changes in capital structure that do not involve
payment, such as stock splits and reverse stock splits, as these do not affect market
capitalization.
Fig. 3: Timing of adjustments resulting from changes in capital structure

Change in capital structure

Stockreplacement

Capitalincrease

Date of listing change

Previous day's priceCorporate divestiture(company/division spinoff)

Ex-rights date

Not used[13]Stock replacement

Replacement datePrevious day's price

Rights offering

Ex-rights dateIssue price

Gratis allocation of stock acquisition
Ex-rights daterightsExercise price

Gratis allocation of treasury stock

Ex-rights datePrevious day's price

Public offering

Business day following payment date (listing date ofPrevious day's pricenew shares when settlement is on issuance date)

Capital increase via third-party
placement

Five business days after date of listing change

Previous day's price

Conversion of preferred stock

Last business day of month in which number ofconverted shares becomes known

Previous day's price

Exercise of stock acquisition rights

Last business day of month in which number of newshares for which rights were exercised becomes
Previous day's priceknown

Corporate divestiture(new stock incontinuing company)

Date of listing change

Previous day's price

Retirement of treasury stock

Last business day of month following month oftreasury stock retirement

Previous day's price

Rights offering refusal

Last business day of month in which rights offering
refusal is announced (or last business day offollowing month if announcement is within fivebusiness days of month-end)

Previous day's price

Capital reduction with compensation Effective date

Other

Share price used

Stock transfer, stock swap, merger

Conversion of CBs

Capitalreduction

Adjustment date

Other adjustments

Other adjustments to base market capitalization, if
required, are made on the last business day of themonth of the disclosure of the relevant information(or the last business day of the following month if
the disclosure is made within five business days ofthe month-end)

Previous day's pricePrevious

Source: Nomura

13.

In the case of a corporate divestiture (company/division spinoff), the base market capitalization is adjusted
for the reduction in capital. Definitions of reductions in capital are as follows:(1) when the company does not announce the value of the divested division or of the shares of the divested
company:
capital reduction = amount by which shareholders’ equity is expected to be reduced; and(2) when the company does announce the value of the divested division or of the shares of the divested
company:
capital reduction = value of divested division or value of divested company’s shares × total number of shares

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4.5. Adjustment to reflect change in index inclusion ratio
Constituent stocks are replaced in periodic and unscheduled reconstitutions and also
when necessary for other reasons. In addition, when the following changes in capital
structure result in a change in the number of shares outstanding for index calculation
purposes, the index inclusion ratio is changed so that the number of shares in the stockthat are included in the index does not change.
• Stock transfer, stock swap, merger[14]• Rights issue offering• Gratis allocation of stock acquisition rights• Public offering• Capital increase via third-party placement• Conversion of preferred stock into common stock• Exercise of CBs, exercise of stock acquisition rights• Corporate divestiture (new shares in continuing company)• Retirement of treasury stock• Rights offering refusal• Capital reduction with compensation• Other adjustments

14.

If a wholly owned subsidiary (merged company) is an index constituent, the number of shares in the parent
company (merging company) will be adjusted to reflect the exchange ratio (merger ratio).

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5. Data publication services
Nomura Japan Equity Growth Potential Index access points[15]Information on the Nomura Japan Equity Growth Potential Index is available on the following media:
Bloomberg
QUICK: NMRIJOGP<Index> (index excluding dividends, yen-denominated)
NMRIJIGP<Index> (index including dividends, yen-denominated): NRIJ@

REUTERS: .NGRW01 (index excluding dividends, yen-denominated).NGRW01TR (index including dividends, yen-denominated)

Our website

http://qr.nomura.co.jp/jp/ngrw/index.html (Japanese only)

Contact
Global Research Division, Financial Engineering & Technology Research CenterIndex Operations Dept.
Email: idx_mgr@jp.nomura.com
Website: http://qr.nomuraholdings.com/en/indexlicense.html

The Nomura Japan Equity Growth Potential Index released by Nomura Securities Co.,
Ltd. ("Nomura") and its intellectual and all other rights belong to Nomura. Nomura does
not guarantee the accuracy, completeness, reliability, usefulness, marketability,
merchantability or fitness of the index, and does not take any responsibility for businessactivities or services that any index user and/or its affiliates undertakes with the use of theindex.
A license agreement with Nomura Securities is required to use the index and accessdetailed data.
In the case of an unavoidable event such as computer breakdown or natural disaster,
calculation of the index may be delayed or suspended.
While every effort is made to ensure that the information used in this report and all
published information is based on reliable data, it should be noted that data may bechanged or amended when necessary.

15.

Published data are all for reference only.

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Policies with regard to Nomura Securities
Co., Ltd. (NSC)’s indices
The below index-related policies are published on our website.
See the following link for details:

http://qr.nomuraholdings.com/en/guides/index.html• Index Governance Framework• Conflicts of Interest Policy• Index Calculation Policy• Glossary (Equity)• Complaints Handling Policy

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Appendix A-1
Analyst Certification
I, Index Operations Dept., hereby certify (1) that the views expressed in this Research report accurately reflect my personalviews about any or all of the subject securities or issuers referred to in this Research report, (2) no part of my compensation
was, is or will be directly or indirectly related to the specific recommendations or views expressed in this Research report and (3)no part of my compensation is tied to any specific investment banking transactions performed by Nomura Securities
International, Inc., Nomura International plc or any other Nomura Group company.

Important Disclosures
The lists of issuers that are affiliates or subsidiaries of Nomura Holdings Inc., the parent company of Nomura Securities Co., Ltd., issuers thathave officers who concurrently serve as officers of Nomura Securities Co., Ltd., issuers in which the Nomura Group holds 1% or more of any
class of common equity securities and issuers for which Nomura Securities Co., Ltd. has lead managed a public offering of equity or equity
linked securities in the past 12 months are available at https://www.nomuraholdings.com/report/ . Please contact the Research Production
Operation Dept. of Nomura Securities Co., Ltd. for additional information.

Online availability of research and conflict-of-interest disclosures
Nomura Group research is available on www.nomuranow.com/research, Bloomberg, Capital IQ, Factset, Reuters and ThomsonOne.
Important disclosures may be read at http://go.nomuranow.com/research/globalresearchportal/pages/disclosures/disclosures.aspx or requested
from Nomura Securities International, Inc. If you have any difficulties with the website, please email grpsupport@nomura.com for help.
The analysts responsible for preparing this report have received compensation based upon various factors including the firm's total revenues, aportion of which is generated by Investment Banking activities. Unless otherwise noted, the non-US analysts listed at the front of this report are
not registered/qualified as research analysts under FINRA rules, may not be associated persons of NSI, and may not be subject to FINRA Rule
2241 restrictions on communications with covered companies, public appearances, and trading securities held by a research analyst account.
Nomura Global Financial Products Inc. (NGFP) Nomura Derivative Products Inc. (NDP) and Nomura International plc. (NIplc) are registered with
the Commodities Futures Trading Commission and the National Futures Association (NFA) as swap dealers. NGFP, NDPI, and NIplc are
generally engaged in the trading of swaps and other derivative products, any of which may be the subject of this report.

Distribution of ratings (Nomura Group)
The distribution of all ratings published by Nomura Group Global Equity Research is as follows:
56% have been assigned a Buy rating which, for purposes of mandatory disclosures, are classified as a Buy rating; 38% of companies with thisrating are investment banking clients of the Nomura Group*. 0% of companies (which are admitted to trading on a regulated market in the EEA)
with this rating were supplied material services** by the Nomura Group.
41% have been assigned a Neutral rating which, for purposes of mandatory disclosures, is classified as a Hold rating; 60% of companies withthis rating are investment banking clients of the Nomura Group*. 0% of companies (which are admitted to trading on a regulated market in the
EEA) with this rating were supplied material services by the Nomura Group
3% have been assigned a Reduce rating which, for purposes of mandatory disclosures, are classified as a Sell rating; 12% of companies withthis rating are investment banking clients of the Nomura Group*. 0% of companies (which are admitted to trading on a regulated market in the
EEA) with this rating were supplied material services by the Nomura Group.
As at 31 March 2022.
*The Nomura Group as defined in the Disclaimer section at the end of this report.
** As defined by the EU Market Abuse Regulation

Definition of Nomura Group's equity research rating system and sectors
The rating system is a relative system, indicating expected performance against a specific benchmark identified for each individual stock,subject to limited management discretion. An analyst’s target price is an assessment of the current intrinsic fair value of the stock based on an
appropriate valuation methodology determined by the analyst. Valuation methodologies include, but are not limited to, discounted cash flow
analysis, expected return on equity and multiple analysis. Analysts may also indicate expected absolute upside/downside relative to the statedtarget price, defined as (target price - current price)/current price.

STOCKSA rating of 'Buy', indicates that the analyst expects the stock to outperform the Benchmark over the next 12 months. A rating of 'Neutral',indicates that the analyst expects the stock to perform in line with the Benchmark over the next 12 months. A rating of 'Reduce', indicates thatthe analyst expects the stock to underperform the Benchmark over the next 12 months. A rating of 'Suspended', indicates that the rating, target
price and estimates have been suspended temporarily to comply with applicable regulations and/or firm policies. Securities and/or companies
that are labelled as 'Not rated' or shown as 'No rating' are not in regular research coverage. Investors should not expect continuing or

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additional information from Nomura relating to such securities and/or companies. Benchmarks are as follows: United States/Europe/Asia exJapan: please see valuation methodologies for explanations of relevant benchmarks for stocks, which can be accessed at:
http://go.nomuranow.com/research/globalresearchportal/pages/disclosures/disclosures.aspx; Global Emerging Markets (ex-Asia): MSCIEmerging Markets ex-Asia, unless otherwise stated in the valuation methodology; Japan: Russell/Nomura Large Cap.

SECTORSA 'Bullish' stance, indicates that the analyst expects the sector to outperform the Benchmark during the next 12 months. A 'Neutral' stance,
indicates that the analyst expects the sector to perform in line with the Benchmark during the next 12 months. A 'Bearish' stance, indicates thatthe analyst expects the sector to underperform the Benchmark during the next 12 months. Sectors that are labelled as 'Not rated' or shown as'N/A' are not assigned ratings. Benchmarks are as follows: United States: S&P 500; Europe: Dow Jones STOXX 600; Global Emerging
Markets (ex-Asia): MSCI Emerging Markets ex-Asia. Japan/Asia ex-Japan: Sector ratings are not assigned.

Target Price
A Target Price, if discussed, indicates the analyst’s forecast for the share price with a 12-month time horizon, reflecting in part the analyst's
estimates for the company's earnings. The achievement of any target price may be impeded by general market and macroeconomic trends, andby other risks related to the company or the market, and may not occur if the company's earnings differ from estimates.

Disclaimers

This publication contains material that has been prepared by the Nomura Group entity identified on page 1 and, if applicable, with thecontributions of one or more Nomura Group entities whose employees and their respective affiliations are specified on page 1 or identified
elsewhere in this publication. The term "Nomura Group" used herein refers to Nomura Holdings, Inc. and its affiliates and subsidiaries including:(a) Nomura Securities Co., Ltd. ('NSC') Tokyo, Japan, (b) Nomura Financial Products Europe GmbH (‘NFPE’), Germany, (c) Nomura
International plc ('NIplc'), UK, (d) Nomura Securities International, Inc. ('NSI'), New York, US, (e) Nomura International (Hong Kong) Ltd.
(‘NIHK’), Hong Kong, (f) Nomura Financial Investment (Korea) Co., Ltd. (‘NFIK’), Korea (Information on Nomura analysts registered with the
Korea Financial Investment Association ('KOFIA') can be found on the KOFIA Intranet at http://dis.kofia.or.kr, (g) Nomura Singapore Ltd. (‘NSL’),Singapore (Registration number 197201440E, regulated by the Monetary Authority of Singapore) (h) Nomura Australia Ltd. (‘NAL’), Australia(ABN 48 003 032 513), regulated by the Australian Securities and Investment Commission ('ASIC') and holder of an Australian financial services
licence number 246412, (i) Nomura Securities Malaysia Sdn. Bhd. (‘NSM’), Malaysia, (j) NIHK, Taipei Branch (‘NITB’), Taiwan, (k) Nomura
Financial Advisory and Securities (India) Private Limited (‘NFASL’), Mumbai, India (Registered Address: Ceejay House, Level 11, Plot F,
Shivsagar Estate, Dr. Annie Besant Road, Worli, Mumbai- 400 018, India; Tel: 91 22 4037 4037, Fax: 91 22 4037 4111; CIN No:
U74140MH2007PTC169116, SEBI Registration No. for Stock Broking activities : INZ000255633; SEBI Registration No. for Merchant Banking :INM000011419; SEBI Registration No. for Research: INH000001014. ‘CNS Thailand’ next to an analyst’s name on the front page of a research
report indicates that the analyst is employed by Capital Nomura Securities Public Company Limited (‘CNS’) to provide research assistanceservices to NSL under an agreement between CNS and NSL. ‘NSFSPL’ next to an employee’s name on the front page of a research report
indicates that the individual is employed by Nomura Structured Finance Services Private Limited to provide assistance to certain Nomura
entities under inter-company agreements. 'Verdhana' next to an individual's name on the front page of a research report indicates that theindividual is employed by PT Verdhana Sekuritas Indonesia ('Verdhana') to provide research assistance to NIHK under a research partnershipagreement and neither Verdhana nor such individual is licensed outside of Indonesia. For the avoidance of doubt and for the purpose of
disclosure, Nomura Orient International Securities Co., Ltd (“NOI”), a joint venture amongst Nomura Group, Orient International (Holding) Co.,Ltd and Shanghai Huangpu Investment Holding (Group) Co., Ltd is excluded from the definition of Nomura Group. An individual name printed
next to NOI on the front page of a research report indicates that individual is employed by NOI to provide research assistance to NIHK under aresearch partnership agreement and neither NOI or such individual is licensed outside of Mainland China, PRC.
THIS MATERIAL IS: (I) FOR YOUR PRIVATE INFORMATION, AND WE ARE NOT SOLICITING ANY ACTION BASED UPON IT; (II) NOT TO
BE CONSTRUED AS AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY SECURITIES IN ANY JURISDICTION WHERE
SUCH OFFER OR SOLICITATION WOULD BE ILLEGAL; AND (III) OTHER THAN DISCLOSURES RELATING TO THE NOMURA GROUP,BASED UPON INFORMATION FROM SOURCES THAT WE CONSIDER RELIABLE, BUT HAS NOT BEEN INDEPENDENTLY VERIFIED BY
NOMURA GROUP.
Other than disclosures relating to the Nomura Group, the Nomura Group does not warrant, represent or undertake, express or implied, that the
document is fair, accurate, complete, correct, reliable or fit for any particular purpose or merchantable, and to the maximum extent permissible
by law and/or regulation, does not accept liability (in negligence or otherwise, and in whole or in part) for any act (or decision not to act) resulting
from use of this document and related data. To the maximum extent permissible by law and/or regulation, all warranties and other assurancesby the Nomura Group are hereby excluded and the Nomura Group shall have no liability (in negligence or otherwise, and in whole or in part) for
any loss howsoever arising from the use, misuse, or distribution of this material or the information contained in this material or otherwise arisingin connection therewith.
Opinions or estimates expressed are current opinions as of the original publication date appearing on this material and the information, including
the opinions and estimates contained herein, are subject to change without notice. The Nomura Group, however, expressly disclaims any
obligation, and therefore is under no duty, to update or revise this document. Any comments or statements made herein are those of theauthor(s) and may differ from views held by other parties within Nomura Group. Clients should consider whether any advice or recommendationin this report is suitable for their particular circumstances and, if appropriate, seek professional advice, including tax advice. The Nomura Group
does not provide tax advice.
The Nomura Group, and/or its officers, directors, employees and affiliates, may, to the extent permitted by applicable law and/or regulation, deal
as principal, agent, or otherwise, or have long or short positions in, or buy or sell, the securities, commodities or instruments, or options or otherderivative instruments based thereon, of issuers or securities mentioned herein. The Nomura Group companies may also act as market makeror liquidity provider (within the meaning of applicable regulations in the UK) in the financial instruments of the issuer. Where the activity of18

Nomura | Nomura Japan Equity Growth Potential Index

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market maker is carried out in accordance with the definition given to it by specific laws and regulations of the US or other jurisdictions, this will
be separately disclosed within the specific issuer disclosures.
This document may contain information obtained from third parties, including, but not limited to, ratings from credit ratings agencies such as
Standard & Poor’s. The Nomura Group hereby expressly disclaims all representations, warranties or undertakings of originality, fairness,accuracy, completeness, correctness, merchantability or fitness for a particular purpose with respect to any of the information obtained fromthird parties contained in this material or otherwise arising in connection therewith, and shall not be liable (in negligence or otherwise, and inwhole or in part) for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses,
legal fees, or losses (including lost income or profits and opportunity costs) in connection with any use or misuse of any of the information
obtained from third parties contained in this material or otherwise arising in connection therewith. Reproduction and distribution of third-party
content in any form is prohibited except with the prior written permission of the related third-party. Third-party content providers do not, express
or implied, guarantee the fairness, accuracy, completeness, correctness, timeliness or availability of any information, including ratings, and are
not in any way responsible for any errors or omissions (negligent or otherwise), regardless of the cause, or for the results obtained from the use
or misuse of such content. Third-party content providers give no express or implied warranties, including, but not limited to, any warranties ofmerchantability or fitness for a particular purpose or use. Third-party content providers shall not be liable (in negligence or otherwise, and inwhole or in part) for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses,
legal fees, or losses (including lost income or profits and opportunity costs) in connection with any use or misuse of their content, including
ratings. Credit ratings are statements of opinions and are not statements of fact or recommendations to purchase hold or sell securities. They do
not address the suitability of securities or the suitability of securities for investment purposes, and should not be relied on as investment advice.
Any MSCI sourced information in this document is the exclusive property of MSCI Inc. (‘MSCI’). Without prior written permission of MSCI, thisinformation and any other MSCI intellectual property may not be duplicated, reproduced, re-disseminated, redistributed or used, in whole or inpart, for any purpose whatsoever, including creating any financial products and any indices. This information is provided on an "as is" basis. The
user assumes the entire risk of any use made of this information. MSCI, its affiliates and any third party involved in, or related to, computing orcompiling the information hereby expressly disclaim all representations, warranties or undertakings of originality, fairness, accuracy,completeness, correctness, merchantability or fitness for a particular purpose with respect to any of this material or the information contained inthis material or otherwise arising in connection therewith. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any
third party involved in, or related to, computing or compiling the information have any liability (in negligence or otherwise, and in whole or in part)for any damages of any kind. MSCI and the MSCI indexes are services marks of MSCI and its affiliates.
The intellectual property rights and any other rights, in Russell/Nomura Japan Equity Index belong to Nomura Securities Co., Ltd. ("Nomura")and Frank Russell Company ("Russell"). Nomura and Russell do not guarantee fairness, accuracy, completeness, correctness, reliability,
usefulness, marketability, merchantability or fitness of the Index, and do not account for business activities or services that any index user
and/or its affiliates undertakes with the use of the Index.
Investors should consider this document as only a single factor in making their investment decision and, as such, the report should not beviewed as identifying or suggesting all risks, direct or indirect, that may be associated with any investment decision. Nomura Group produces a
number of different types of research product including, among others, fundamental analysis and quantitative analysis; recommendations
contained in one type of research product may differ from recommendations contained in other types of research product, whether as a result ofdiffering time horizons, methodologies or otherwise. The Nomura Group publishes research product in a number of different ways including theposting of product on the Nomura Group portals and/or distribution directly to clients. Different groups of clients may receive different products
and services from the research department depending on their individual requirements.
Figures presented herein may refer to past performance or simulations based on past performance which are not reliable indicators of future or
likely performance. Where the information contains an expectation, projection or indication of future performance and business prospects, suchforecasts may not be a reliable indicator of future or likely performance. Moreover, simulations are based on models and simplifying
assumptions which may oversimplify and not reflect the future distribution of returns. Any figure, strategy or index created and published forillustrative purposes within this document is not intended for “use” as a “benchmark” as defined by the European Benchmark Regulation.
Certain securities are subject to fluctuations in exchange rates that could have an adverse effect on the value or price of, or income derived
from, the investment.
With respect to Fixed Income Research: Recommendations fall into two categories: tactical, which typically last up to three months; or strategic,
which typically last from 6-12 months. However, trade recommendations may be reviewed at any time as circumstances change. ‘Stop loss’
levels for trades are also provided; which, if hit, closes the trade recommendation automatically. Prices and yields shown in recommendations
are taken at the time of submission for publication and are based on either indicative Bloomberg, Reuters or Nomura prices and yields at thattime. The prices and yields shown are not necessarily those at which the trade recommendation can be implemented.
The securities described herein may not have been registered under the US Securities Act of 1933 (the ‘1933 Act’), and, in such case, may not
be offered or sold in the US or to US persons unless they have been registered under the 1933 Act, or except in compliance with an exemption
from the registration requirements of the 1933 Act. Unless governing law permits otherwise, any transaction should be executed via a Nomura
entity in your home jurisdiction.
This document has been approved for distribution in the UK as investment research by NIplc. NIplc is authorised by the Prudential Regulation
Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. NIplc is a member of the London Stock
Exchange. This document does not constitute a personal recommendation within the meaning of applicable regulations in the UK, or take into
account the particular investment objectives, financial situations, or needs of individual investors. This document is intended only for investors
who are 'eligible counterparties' or 'professional clients' for the purposes of applicable regulations in the UK, and may not, therefore, be
redistributed to persons who are 'retail clients' for such purposes.
This document has been approved for distribution in the European Economic Area as investment research by Nomura Financial Products
Europe GmbH (“NFPE”). NFPE is a company organized as a limited liability company under German law registered in the Commercial Registerof the Court of Frankfurt/Main under HRB 110223. NFPE is authorized and regulated by the German Federal Financial Supervisory Authority(BaFin).

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This document has been approved by NIHK, which is regulated by the Hong Kong Securities and Futures Commission, for distribution in Hong
Kong by NIHK. This document is intended only for investors who are 'professional investors' for the purposes of applicable regulations in Hong
Kong and may not, therefore, be redistributed to persons who are not 'professional investors' for such purposes.
This document has been approved for distribution in Australia by NAL, which is authorized and regulated in Australia by the ASIC.
This document has also been approved for distribution in Malaysia by NSM.
In Singapore, this document has been distributed by NSL, an exempt financial adviser as defined under the Financial Advisers Act (Chapter110), among other things, and regulated by the Monetary Authority of Singapore. NSL may distribute this document produced by its foreign
affiliates pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the recipient of this document is not
an accredited, expert or institutional investor as defined by the Securities and Futures Act (Chapter 289), NSL accepts legal responsibility for thecontents of this document in respect of such recipient only to the extent required by law. Recipients of this document in Singapore should
contact NSL in respect of matters arising from, or in connection with, this document. THIS DOCUMENT IS INTENDED FOR GENERALCIRCULATION. IT DOES NOT TAKE INTO ACCOUNT THE SPECIFIC INVESTMENT OBJECTIVES, FINANCIAL SITUATION OR
PARTICULAR NEEDS OF ANY PARTICULAR PERSON. RECIPIENTS SHOULD TAKE INTO ACCOUNT THEIR SPECIFIC INVESTMENTOBJECTIVES, FINANCIAL SITUATION OR PARTICULAR NEEDS BEFORE MAKING A COMMITMENT TO PURCHASE ANY SECURITIES,INCLUDING SEEKING ADVICE FROM AN INDEPENDENT FINANCIAL ADVISER REGARDING THE SUITABILITY OF THE INVESTMENT,UNDER A SEPARATE ENGAGEMENT, AS THE RECIPIENT DEEMS FIT.
Unless prohibited by the provisions of Regulation S of the 1933 Act, this material is distributed in the US, by NSI, a US-registered broker-dealer,which accepts responsibility for its contents in accordance with the provisions of Rule 15a-6, under the US Securities Exchange Act of 1934.
The entity that prepared this document permits its separately operated affiliates within the Nomura Group to make copies of such documents
available to their clients.
This document has not been approved for distribution to persons other than ‘Authorised Persons’, ‘Exempt Persons’ or ‘Institutions’ (as definedby the Capital Markets Authority) in the Kingdom of Saudi Arabia (‘Saudi Arabia’) or a ’Market Counterparty’ or a 'Professional Client' (as definedby the Dubai Financial Services Authority) in the United Arab Emirates (‘UAE’) or a ‘Market Counterparty’ or a ‘Business Customer’ (as definedby the Qatar Financial Centre Regulatory Authority) in the State of Qatar (‘Qatar’) by Nomura Saudi Arabia, NIplc or any other member of the
Nomura Group, as the case may be. Neither this document nor any copy thereof may be taken or transmitted or distributed, directly or indirectly,
by any person other than those authorised to do so into Saudi Arabia or in the UAE or in Qatar or to any person other than ‘Authorised Persons’,‘Exempt Persons’ or ‘Institutions’ located in Saudi Arabia or a ’Market Counterparty’ or a 'Professional Client' in the UAE or a ‘Market
Counterparty’ or a ‘Business Customer’ in Qatar. Any failure to comply with these restrictions may constitute a violation of the laws of the UAE
or Saudi Arabia or Qatar.
For report with reference of TAIWAN public companies or authored by Taiwan based research analyst:
THIS DOCUMENT IS SOLELY FOR REFERENCE ONLY. You should independently evaluate the investment risks and are solely responsible
for your investment decisions. NO PORTION OF THE REPORT MAY BE REPRODUCED OR QUOTED BY THE PRESS OR ANY OTHERPERSON WITHOUT WRITTEN AUTHORIZATION FROM NOMURA GROUP. Pursuant to Operational Regulations Governing Securities Firms
Recommending Trades in Securities to Customers and/or other applicable laws or regulations in Taiwan, you are prohibited to provide thereports to others (including but not limited to related parties, affiliated companies and any other third parties) or engage in any activities inconnection with the reports which may involve conflicts of interests. INFORMATION ON SECURITIES / INSTRUMENTS NOT EXECUTABLEBY NOMURA INTERNATIONAL (HONG KONG) LTD., TAIPEI BRANCH IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT BECONSTRUED AS A RECOMMENDATION OR A SOLICITATION TO TRADE IN SUCH SECURITIES / INSTRUMENTS.
This material may not be distributed in Indonesia or passed on within the territory of the Republic of Indonesia or to persons who are Indonesian
citizens (wherever they are domiciled or located) or entities of or residents in Indonesia in a manner which constitutes a public offering under thelaws of the Republic of Indonesia. The securities mentioned in this document may not be offered or sold in Indonesia or to persons who are
citizens of Indonesia (wherever they are domiciled or located) or entities of or residents in Indonesia in a manner which constitutes a public
offering under the laws of the Republic of Indonesia.
This document is prepared by Nomura Group or its subsidiary or affiliate (collectively, “Offshore Issuers”) that is not licensed in the People’s
Republic of China (“PRC”, excluding Hong Kong, Macau and Taiwan, for the purpose of this document) to provide securities research and thisresearch report is not approved or intended to be circulated in the PRC. The A-share related analysis (if any) is not produced for any persons
located or incorporated in the PRC. The recipients should not rely on any information contained in the research report in making investment
decisions and Offshore Issuers take no responsibility in this regard.
NO PART OF THIS MATERIAL MAY BE (I) COPIED, PHOTOCOPIED, REPRODUCED OR DUPLICATED IN ANY FORM, BY ANY MEANS;
OR (II) REDISSEMINATED, REPUBLISHED OR REDISTRIBUTED WITHOUT THE PRIOR WRITTEN CONSENT OF A MEMBER OF THE
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Disclaimers required in Japan
Credit ratings in the text that are marked with an asterisk (*) are issued by a rating agency not registered under Japan’s Financial Instruments
and Exchange Act (“Unregistered Ratings”). For details on Unregistered Ratings, please contact the Research Production Operation Dept. of
Nomura Securities Co., Ltd.
Investors in the financial products offered by Nomura Securities may incur fees and commissions specific to those products (for example,
transactions involving Japanese equities are subject to a sales commission (all figures on a tax-inclusive basis) of up to 1.43% of the transaction
amount or a commission of ¥2,860 for transactions of ¥200,000 or less, while transactions involving investment trusts are subject to various
fees, such as commissions at the time of purchase and asset management fees, such as commissions at the time of purchase and asset
management fees (trust fees), specific to each investment trust).

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In addition, all products carry the risk of losses owing to price fluctuations or other factors. Fees and risks vary by product. Please thoroughly
read the written materials provided, such as documents delivered before making a contract, listed securities documents, or prospectuses.
Transactions involving Japanese equities (including Japanese REITs, Japanese ETFs, and Japanese ETNs, Japanese Infrastructure Funds)
are subject to a sales commission of up to 1.43% (tax included) of the transaction amount (or a commission of ¥2,860 (tax included) for
transactions of ¥200,000 or less). When Japanese equities are purchased via OTC transactions (including offerings), only the purchase priceshall be paid, with no sales commission charged. However, Nomura Securities may charge a separate fee for OTC transactions, as agreed withthe customer. Japanese equities carry the risk of losses owing to price fluctuations. Japanese REITs carry the risk of losses owing tofluctuations in price and/or earnings of underlying real estate. Japanese ETFs and ETNs carry the risk of losses owing to fluctuations in theunderlying indexes or other benchmarks. Japanese Infrastructure Funds carry out the risk of losses owing to fluctuations in price and/or
earnings of underlying infrastructures.
Transactions involving foreign equities are subject to a domestic sales commission of up to 1.045% (tax included) of the transaction amount(which equals the local transaction amount plus local fees and taxes in the case of a purchase or the local transaction amount minus local fees
and taxes in the case of a sale) (for transaction amounts of ¥750,000 and below, maximum domestic sales commission is ¥7,810 (taxincluded)). Local fees and taxes in foreign financial instruments markets vary by country/territory. When foreign equities are purchased via OTC
transactions (including offerings), only the purchase price shall be paid, with no sales commission charged. However, Nomura Securities may
charge a separate fee for OTC transactions, as agreed with the customer. Foreign equities carry the risk of losses owing to factors such as pricefluctuations and foreign exchange rate fluctuations.
Margin transactions are subject to a sales commission of up to 1.43% (tax included) of the transaction amount (or a commission of ¥2,860 (taxincluded) for transactions of ¥200,000 or less), as well as management fees and rights handling fees. In addition, long margin transactions are
subject to interest on the purchase amount, while short margin transactions are subject to fees for the lending of the shares borrowed. A marginequal to at least 30% of the transaction amount (at least 33% for online transactions) and at least ¥300,000 is required. With margintransactions, an amount up to roughly 3.3x the margin (roughly 3x for online transactions) may be traded. Margin transactions therefore carry
the risk of losses in excess of the margin owing to share price fluctuations. For details, please thoroughly read the written materials provided,such as listed securities documents or documents delivered before making a contract.
Transactions involving convertible bonds are subject to a sales commission of up to 1.10% (tax included) of the transaction amount (or acommission of ¥4,400 (tax included) if this would be less than ¥4,400). When convertible bonds are purchased via OTC transactions (including
offerings), only the purchase price shall be paid, with no sales commission charged. However, Nomura Securities may charge a separate fee for
OTC transactions, as agreed with the customer. Convertible bonds carry the risk of losses owing to factors such as interest rate fluctuations andprice fluctuations in the underlying stock. In addition, convertible bonds denominated in foreign currencies also carry the risk of losses owing tofactors such as foreign exchange rate fluctuations.
When bonds are purchased via public offerings, secondary distributions, or other OTC transactions with Nomura Securities, only the purchaseprice shall be paid, with no sales commission charged. Bonds carry the risk of losses, as prices fluctuate in line with changes in market interest
rates. Bond prices may also fall below the invested principal as a result of such factors as changes in the management and financial
circumstances of the issuer, or changes in third-party valuations of the bond in question. In addition, foreign currency-denominated bonds also
carry the risk of losses owing to factors such as foreign exchange rate fluctuations.
When Japanese government bonds (JGBs) for individual investors are purchased via public offerings, only the purchase price shall be paid, withno sales commission charged. As a rule, JGBs for individual investors may not be sold in the first 12 months after issuance. When JGBs forindividual investors are sold before maturity, an amount calculated via the following formula will be subtracted from the par value of the bondplus accrued interest: (1) for 10-year variable rate bonds, an amount equal to the two preceding coupon payments (before tax) x 0.79685 will be
used, (2) for 5-year and 3-year fixed rate bonds, an amount equal to the two preceding coupon payments (before tax) x 0.79685 will be used.
When inflation-indexed JGBs are purchased via public offerings, secondary distributions (uridashi deals), or other OTC transactions with
Nomura Securities, only the purchase price shall be paid, with no sales commission charged. Inflation-indexed JGBs carry the risk of losses, as
prices fluctuate in line with changes in market interest rates and fluctuations in the nationwide consumer price index. The notional principal of
inflation-indexed JGBs changes in line with the rate of change in nationwide CPI inflation from the time of its issuance. The amount of the
coupon payment is calculated by multiplying the coupon rate by the notional principal at the time of payment. The maturity value is the amountof the notional principal when the issue becomes due. For JI17 and subsequent issues, the maturity value shall not undercut the face amount.
Purchases of investment trusts (and sales of some investment trusts) are subject to a purchase or sales fee of up to 5.5% (tax included) of thetransaction amount. Also, a direct cost that may be incurred when selling investment trusts is a fee of up to 2.0% of the unit price at the time ofredemption. Indirect costs that may be incurred during the course of holding investment trusts include, for domestic investment trusts, an asset
management fee (trust fee) of up to 5.5% (tax included/annualized basis) of the net assets in trust, as well as fees based on investment
performance. Other indirect costs may also be incurred. For foreign investment trusts, indirect fees may be incurred during the course of holding
such as investment company compensation.
Investment trusts invest mainly in securities such as Japanese and foreign equities and bonds, whose prices fluctuate. Investment trust unit
prices fluctuate owing to price fluctuations in the underlying assets and to foreign exchange rate fluctuations. As such, investment trusts carry
the risk of losses. Fees and risks vary by investment trust. Maximum applicable fees are subject to change; please thoroughly read the writtenmaterials provided, such as prospectuses or documents delivered before making a contract.
In interest rate swap transactions and USD/JPY basis swap transactions (“interest rate swap transactions, etc.”), only the agreed transaction
payments shall be made on the settlement dates. Some interest rate swap transactions, etc. may require pledging of margin collateral. In someof these cases, transaction payments may exceed the amount of collateral. There shall be no advance notification of required collateral value or
collateral ratios as they vary depending on the transaction. Interest rate swap transactions, etc. carry the risk of losses owing to fluctuations inmarket prices in the interest rate, currency and other markets, as well as reference indices. Losses incurred as such may exceed the value ofmargin collateral, in which case margin calls may be triggered. In the event that both parties agree to enter a replacement (or termination)transaction, the interest rates received (paid) under the new arrangement may differ from those in the original arrangement, even if terms otherthan the interest rates are identical to those in the original transaction. Risks vary by transaction. Please thoroughly read the written materials

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06 June 2022

provided, such as documents delivered before making a contract and disclosure statements.
In OTC transactions of credit default swaps (CDS), no sales commission will be charged. When entering into CDS transactions, the protection
buyer will be required to pledge or entrust an agreed amount of margin collateral. In some of these cases, the transaction payments may exceed
the amount of margin collateral. There shall be no advance notification of required collateral value or collateral ratios as they vary depending on
the financial position of the protection buyer. CDS transactions carry the risk of losses owing to changes in the credit position of some or all of
the referenced entities, and/or fluctuations of the interest rate market. The amount the protection buyer receives in the event that the CDS is
triggered by a credit event may undercut the total amount of premiums that he/she has paid in the course of the transaction. Similarly, theamount the protection seller pays in the event of a credit event may exceed the total amount of premiums that he/she has received in thetransaction. All other conditions being equal, the amount of premiums that the protection buyer pays and that received by the protection seller
shall differ. In principle, CDS transactions will be limited to financial instruments business operators and qualified institutional investors.
Transfers of equities to another securities company via the Japan Securities Depository Center are subject to a transfer fee of up to ¥11,000(tax included) per issue transferred depending on volume. No account fee will be charged for marketable securities or monies deposited.

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Additional information regarding the methodologies or models used in the production of any investment recommendations contained
within this document is available upon request by contacting the Research Analysts of Nomura listed on the front page. Disclosuresinformation is available upon request and disclosure information is available at the Nomura Disclosure web page:
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