Nomura Shareholder Yield 70

Global Markets Research
17 June 2022

EQUITY: EQUITY QUANTITATIVE RESEARCH (INDEX)

Index rulebook

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

Nomura Shareholder Yield 70
Nomura Shareholder Yield 70 is a share price index comprising stocks in 70 companies
that quantitative indicators based on dividends, share buybacks, etc, indicate to beproactive on shareholder returns. Constituent stocks are selected from a universe of allcommon stocks listed on Japanese stock exchanges (excluding stocks in the "banks","securities and commodities futures", "insurance", and "other financing business" sectors,
based on the Tokyo Stock Exchange's 33 sector classifications). Weightings of individual
stocks in the index are determined on the basis of free float–adjusted market capitalization(with individual stock weightings capped at 2%).
Index characteristics• 70 Japanese stocks with a high "net shareholder yield", based on actual dividends,
share buybacks, and capital increases, etc, over the past three years, are selected forthe index• Index constituents are assigned an index weighting based on their free float–adjusted
market capitalization (with individual stock weightings capped at 2%), to take into
consideration the balance between investment diversification and liquidity• Stocks in the "banks", "securities and commodities futures", "insurance", and "otherfinancing business" sectors, based on the Tokyo Stock Exchange's 33 sector
classifications, are excluded• The index is reconstituted once a year

Main changes/additions to rules[30 October 2020] Change to "net shareholder yield" calculation method (see 2.2.3. Stockselection based on net shareholder yield)

Production Complete: 2022-06-17 07:12 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 reconfiguration base date
1.3. Announcement of periodic reconstitutions
2. Stock selection
2.1. Stock selection universe
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
Data publication services
Sources of Nomura Shareholder Yield 70 data[10]Contact
Policies with regard to Nomura Securities Co., Ltd. (NSC)’s indices
Appendix A-1

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1. Periodic reconstitutions
1.1. Periodic reconstitution date
The periodic reconstitution date is the first business day of February every year, andreconstitution is carried out after the close of trading on the business day preceding theperiodic reconstitution date.

1.2. Periodic reconfiguration base date
The periodic reconstitution base date is the last business day in December. Constituent
stocks and the number of shares in each constituent stock to be included in the index
following its periodic reconfiguration are determined on the basis of calculations using
data as of the reconstitution 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
The stock selection universe is the top 98% of stocks listed on stock exchanges in Japan[1] as of the periodic reconstitution base date in terms of free float–adjusted market
capitalization[2] calculated on the most recent 15 October preceding the periodic
reconstitution base date. However, stocks that meet the following criteria as of theperiodic 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)that are not included in the index immediately before the periodic reconstitution are
not included in the stock selection universe.
• TOB target companies[3]Stocks that are the target of tender offers (i.e., 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
and the periodic reconstitution date;(2) the company conducting the tender offer plans to acquire all the outstanding
shares in the target company; and(3) the company conducting the tender offer is planning to acquire all of the stock of
the target 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 regarded asoverseas companies are excluded, even if these stocks are traded in the Japanesemarket.
• Other
Latent stock, warrants, and rights on them are excluded. The Bank of Japan is also
excluded.

1.
2.

3.

Tokyo Stock Exchange (Prime Market, Standard Market, Growth Market, TOKYO PRO Market), Nagoya
Stock Exchange, Sapporo Securities Exchange, and Fukuoka Stock Exchange
We use free float–adjusted market capitalization, estimated as [Nomura composite share price x (number ofstocks outstanding for index calculation purposes - number of stable shareholding stocks)], in order to reflect
the number of stocks that are actually available for investment and are highly likely to be in circulation on themarket. The number of stable shareholding stocks is estimated using major shareholder data, the scheduleof securities held in securities reports, and data published by the stock exchange or the company (such asbulletins and prospectuses) available as of 15 October every year (or the preceding business day if 15
October is a non-business day).The number of stocks outstanding for index calculation purposes is thenumber of stocks outstanding after reflecting changes in the number of stocks, in accordance with the timingof adjustments resulting from changes in capital structure as set out in 4.4. Adjustment of base market
capitalization. See 2.2.3. Stock selection based on net shareholder yield for details of the Nomura composite
share price.
Effective as of February 2020 periodic reconstitution.

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2.2. Stock selection method
Stocks are selected from the stock selection universe (see 2.1. Stock selection universe)using the following procedure.
Stocks that meet the market capitalization and liquidity criteria (see 2.2.1. Market
capitalization and liquidity) are selected from the stock selection universe (see 2.1. Stockselection universe).
From the stocks selected in 2.2.1, those that meet the sector criteria set out in 2.2.2
Sector are then selected.
From the stocks selected in 2.2.2, the 70 stocks with the highest net shareholder yield are
selected (see 2.2.3. Stock selection based on net shareholder yield).
2.2.1. Market capitalization and liquidity
Using data as of the periodic reconstitution base date, stocks in the stock selection
universe (see 2.1. Stock selection universe) that meet the following criteria are selected.
• In the top 85% of the universe in terms of free float–adjusted market capitalization• In the top 500 stocks in the universe in terms of average daily trading value over thepreceding 60 business days
2.2.2. Sector
Stocks in the "banks", "securities and commodities futures", "insurance", and "otherfinancing business" sectors, based on the Tokyo Stock Exchange's 33 sector
classifications, as of the periodic reconstitution base date, are excluded[4] .
2.2.3. Stock selection based on net shareholder yield
The index comprises the top 70 stocks in terms of net shareholder yield. If there are
multiple stocks at the same rank, causing the total number of stocks to exceed 70, stocks
are selected from the multiple stocks in order of free float–adjusted market cap, startingwith the highest, until the number of stocks selected reaches 70.
Net shareholder yield is calculated using the following method[5] . Data available on the
periodic reconstitution base date is used.
• Net shareholder yield (%) = total amount of net shareholder payout ÷ market
capitalization of outstanding shares x 100• Total amount of net shareholder payout = average total value of dividends paid overpreceding three years + average total value of share buybacks implemented overpreceding three years - average total value of capital increases implemented overpreceding three years - average total treasury share disposal value over preceding
three years

4.
5.

However, stocks may also be excluded with reference to lists of licensed bank holding companies and listsof registered insurance holding companies that are published by the Financial Services Agency (FSA).
Treasury share disposal value will be subtracted in the calculation of the total amount of net shareholder
payout from the February 2021 periodic reconstitution.

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[Data used in calculation of net shareholder yield]• Average total value of dividends paid over preceding three years
The value that is one-third of the total value of dividends paid over the preceding
three years, based on dividends for which the last day with rights is included in thethree-year period preceding the end of the month (30 September) three months prior
to the periodic reconstitution base date.
• Average total value of share buybacks implemented over preceding three years
The value that is one-third of the total value of share buybacks implemented overthe preceding three years, based on share buybacks implemented over the three-year
period preceding the end of the month (31 December) that includes the periodic
reconstitution base date.
The total value of share buybacks implemented is the total purchase result forpurchases on the open market, in tender offers, and in after-hours trading (total valueof purchases in the case of purchases on the open market, and purchase price x
number of shares purchased in the case of tender offers and after-hours trading).
Share buybacks implemented over the preceding three years are the sum of sharebuybacks for which the date that is three business days after the share buyback basedate falls within the preceding three years. The share buyback base date is the last
day of the purchasing period, in the case of purchases on the open market, and thedate on which purchase results were disclosed, in all other cases.
• Average total value of capital increases implemented over preceding three years
The value that is one-third of the total value of capital increases implemented overthe preceding three years, based on capital increases implemented over the threeyear period preceding the end of the month (31 December) that includes the periodic
reconstitution base date.
The total value of capital increases implemented is the total of issue price x number ofpublicly offered shares, in the case of both public offerings and third-party placements(the total number of shares allocated in the case of third-party placements).
Capital increases implemented over the preceding three years are based on capitalincreases for which the third day after the payment date falls within the preceding
three-year period.
• Average total treasury share disposal value over preceding three years
The value that is one-third of the total treasury share disposal value over thepreceding three years, based on the disposal of treasury shares over the three-year
period preceding the end of the month (31 December) that includes the periodic
reconstitution base date.
The total treasury share disposal value is the total disposal value resulting from thesale or kaitori-hikiuke (underwriting) of treasury shares (disposal price x number ofshares disposed of).
Disposal of treasury shares over the preceding three years is the disposal of treasury
shares for which the third day after the payment date falls within the preceding threeyear period.
• Market capitalization of outstanding shares
Market capitalization of outstanding shares = Nomura composite share price on
periodic reconstitution base date x number of shares outstanding for index calculation
purposes on periodic reconstitution base date
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 share price on previous business day
Note: Priority is given to the special quotation price or continuous confirmed quotation
price on the selected exchange if these are available.

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2.3. Index composition
2.3.1. Index weightings of constituent stocks and maximum weighting
Index weightings of constituent stocks are in proportion to their free float–adjusted market
capitalization on the periodic reconstitution base date. However, individual stock
weightings are capped at 2%, and weightings in excess of this are allocated to othershares in proportion to their free float–adjusted market capitalization.
2.3.2. Number of shares included in index and index inclusion ratio for eachconstituent stock
The number of shares included in the index and index inclusion ratio for each constituent
stock are calculated using data as of the periodic reconstitution base date to ensure that
their index weightings are the same as those determined using the method set out above.

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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 that are listed on more than one market and not designated for delisting on one ormore 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, 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 is 31 January 2008 and the value of the index on the base date (basevalue) is 10,000.
Publication of index values commenced on 13 March 2019.

4.2. Calculation of index market capitalization

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, using base market capitalization[6] . Here, t represents theday in question, and t-1 represents the preceding business day.
Calculation of yen-denominated index values• Index excluding dividends• Index including dividends

6.

Adjusted market capitalization is calculated as the change in market capitalization resulting from a change
in capital structure at an index constituent or a change in market capitalization resulting from a change inindex constituent stocks. Adjusted total dividends is calculated as the difference between forecast dividends
and actual 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)[7] . 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 of 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).

7.

This rule applies 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 1). 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. 1: Timing of adjustments resulting from changes in capital structure

Change in capital structure
Stock transfer, stock swap, merger
Stockincrease

Previous day's priceEx-rights date

Not used[8]Stock replacement

Replacement datePrevious day's price

Rights offering

Ex-rights dateIssue priceCorporate divestiture (company/division

Gratis allocation of stock acquisition rights Ex-rights date

Exercise price

Gratis allocation of treasury stock

Ex-rights datePrevious day's price

Public offering

Business day following payment date (listingdate of new shares when settlement is on
issuance date)Previous day's price

Capital increase via third-party placement Five business days after date of listing change

Previous day's price

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

Previous day's price

Last business day of month in which number of
new shares for which rights were exercised
becomes known

Previous day's priceCorporate 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

Conversion of preferred stock
Conversion of CBs
Exercise of stock acquisition rights

Capitalreduction Rights offering refusal

Other

Share price used

Date of listing change

replacement spinoff)

CapitalAdjustment date

Last business day of month in which rights
offering refusal is announced (or last business
Previous day's priceday of following month if announcement is within
five business days of month-end)

Capital reduction with compensation

Effective datePrevious day's price

Other adjustments

Other adjustments to base market capitalization,
if required, are made on the last business day ofthe month of the disclosure of the relevant
Previous day's priceinformation (or the last business day of thefollowing month if the disclosure is made within
five business days of the month-end)

Source: Nomura

8.

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 notannounce 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 ofdivested 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.
•
•
•
•
•
•
•
•
•
•
•
•

9.

Stock transfer, stock swap, merger[9]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

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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Data publication services
Sources of Nomura Shareholder Yield 70 data[10]Information on the Nomura Shareholder Yield 70 is available on the following media:
Bloomberg:

NMRIJOSY<Index> (index excluding dividends, yen-denominated)
NMRIJISY<Index> (index including dividends, yen-denominated)

QUICK:

NRIJ@

Reuters:.NSY70 (index excluding dividends, yen-denominated).NSY70TR (index including dividends, yen-denominated)

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

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

The Nomura Shareholder Yield 70 is released by Nomura Securities Co., Ltd. ("Nomura")
and its intellectual and all other rights belong to Nomura. Nomura does not guarantee theaccuracy, completeness, reliability, usefulness, marketability, merchantability or fitness of
the index, and does not take any responsibility for business activities or services that any
index user and/or its affiliates undertakes with the use of the index.
A license agreement with Nomura is required to use the index and access detailed 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.

10.

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
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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
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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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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.

Nomura Securities Co., Ltd.
Financial instruments firm registered with the Kanto Local Finance Bureau (registration No. 142)
Member associations: Japan Securities Dealers Association; Japan Investment Advisers Association; The Financial Futures Association ofJapan; and Type II Financial Instruments Firms Association.
The Nomura Group manages conflicts with respect to the production of research through its compliance policies and procedures (including, but
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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:
http://go.nomuranow.com/research/globalresearchportal/pages/disclosures/disclosures.aspx
Copyright © 2022 Nomura Securities Co., Ltd. All rights reserved.

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