Nomura Japan Consecutively Increased Dividend
Stock Index

Global Markets Research
17 June 2022

EQUITY: EQUITY QUANTITATIVE RESEARCH (INDEX)

Index rulebook
The Nomura Japan Consecutively Increased Dividend Stock Index is an index ofJapanese equities made up of stocks that have increased their dividends in consecutive
years over a certain period of time. Below, we refer to these stocks as "consecutively
increased dividend stocks." Consecutively increased dividend stocks typically present a
picture of companies that combine stable profits as a source of dividends with a proactive
approach to shareholder returns. The index provides a benchmark for passive investment
funds to track the share price performance of consecutively increased dividend stocks.

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

The consecutively increased dividend stocks included in the index are defined as stocks
for which dividend per share (DPS) has displayed annual consecutive growth over a set
period of time in the past. As the index reflects dividend payments made by companies on
a consistent basis, it only takes into account regular dividends, excluding any special orcommemorative dividend payments. The number of component stocks is restricted inorder to permit investment with a narrow focus on consecutively increased dividend stocks
via passively managed funds.
Index characteristics• The index includes Japanese equities for which actual annual DPS payments haveincreased over a set period of time.
• The maximum number of component stocks is 150 and the minimum is 20.
• The index is reconstituted once a year.
• While the index is weighted by market cap, individual stock weights are capped at
10% to prevent it from being excessively weighted toward large caps.
• To take investability into account, stocks with a low market cap or low liquidity are
excluded via prior screening.

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. Introduction
2. Periodic reconstitutions
2.1. Periodic reconstitution date
2.2. Periodic reconstitution base date
2.3. Number of shares included in index for each component stock
2.4. Announcement of periodic reconstitutions
3. Stock selection
3.1. Universe of stock selection
3.2. Stock selection method
4. Unscheduled reconstitutions
4.1. Response to stock swaps, stock transfers, etc[10]4.2. Removal of stocks
4.3. Announcement of unscheduled reconstitutions
5. Index calculation
5.1. Calculation of index values
5.2. Adjusting the base market capitalization
5.3. Index maintenance
6. Data Service
Policies with regard to Nomura Securities Co., Ltd. (NSC)’s indices
Appendix A-1

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1. Introduction
The Nomura Japan Consecutively Increased Dividend Stock Index is an index ofJapanese equities made up of stocks that have increased their dividends in consecutive
years over a set period of time. Below, we refer to these stocks as "consecutively
increased dividend stocks." Consecutively increased dividend stocks present a picture ofcompanies that combine stable profits as a source of dividends with a proactive approachto shareholder returns. The index provides a benchmark for passive investment funds totrack the share price performance of consecutively increased dividend stocks.
The consecutively increased dividend stocks included in the index are defined as stocks
for which DPS has displayed annual consecutive growth over a set period of time in thepast. Specifically, these are stocks for which actual annual DPS payments have been
increased consistently each fiscal year (Apr.–Mar.). The index only takes into accountcompanies' regular dividend payments, excluding special dividend and commemorative
dividend payments, and the start or resumption of dividend payments is not categorized
as dividend increases.
Periodic reconstitutions of the index take place once a year. Component stocks are
selected from among listed Japanese equities. To take investability into account, stocks
with low market cap or low liquidity are excluded through prior screening. While the index
is weighted by market cap, individual stock weights are capped at 10% to prevent theindex from being excessively weighted toward large caps. Furthermore, we have imposed
limits on the number of stocks (maximum 150, minimum 20) to permit investment with anarrow focus on consecutively increased dividend stocks via passively managed funds. If
the number of stocks fulfilling the selection criteria for consecutively increased dividend
stocks exceeds 150, it will be restricted by applying more stringent criteria for inclusion, byincreasing the requisite number of years of consecutive increased dividends. Conversely,
if the number of stocks meeting selection criteria falls below 20, the number of stocks will
be increased by reducing the requisite number of years of consecutively increased
dividends.

Fig. 1: Consecutively increased dividend stocks overview (example of December 2014 regular reconstitution)

Source: Nomura

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2. Periodic reconstitutions
2.1. Periodic reconstitution date
Periodic reconstitutions take place once a year, on the first business day of December(i.e., after close of trading on the last business day in November).

2.2. Periodic reconstitution base date
The reconstitution base date[1] is the 15th of October each year (or the precedingbusiness day if the 15th is a non-business day). Component stocks and the number ofshares to be included in the index following its periodic reconstitution are determinedbased on data as of the reconstitution base date.

2.3. Number of shares included in index for each componentstock
On the reconstitution base date, stocks are selected for the index via the process set out
in Chapter 3. Stock selection.
2.3.1. Component stock weight and weight limits
Weights for each component stock in the index are calculated using the free
float–adjusted market cap[2] as of the reconstitution base date. The maximum weight forcomponent stocks is limited to 10%. The weight of stocks exceeding the limit is allocatedamong other component stocks proportionately to free float–adjusted market cap.
2.3.2. Number of component shares and index inclusion ratio
The number of component shares included in the index is calculated so that it is equal tothe component stock weight as set out in the previous section. The index market cap foreach stock is calculated by multiplying the constant value[3] by the component stock
weight. The number of shares included in the index for each component stock is
calculated by dividing the index market cap for each stock by the Nomura composite
share price[4] as of the reconstitution base date. The index inclusion ratio (%) refers to
the number of component shares included in the index as a percentage of the number ofshares outstanding for index calculation purposes, and is calculated by dividing thenumber of component shares included in the index by the number of shares outstanding
for index calculation purposes.

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

1.
2.

3.
4.

Through 2008, the reconstitution base date is the last business day of November.
The free float–adjusted market cap is calculated as follows: Nomura composite share price x (shares
outstanding for index calculation purposes - stable shareholding). The stable shareholding (the number ofshares considered to be held on a stable basis) is estimated based on major shareholder data, declarationsof marketable securities holdings contained in securities filings, and public information such as company
prospectuses and stock exchange releases. Shares outstanding for index calculation purposes refer toshares that change according to the timeframe indicated in section 5.2. Adjusting the base market
capitalization.
We take this figure to be ¥1trn.
The Nomura composite price is the price on the exchange that is judged to have the most accurate price forthe stock, based on the percentage of days traded and trading volume over the previous 60 business days
(i.e., its primary exchange). As a general rule, the primary exchange is selected on a daily basis. The shareprice is selected 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 selectedexchange if these are available.

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3. Stock selection
3.1. Universe of stock selection
The universe of stocks eligible for selection consists of all listed stocks[5] as of theregular reconstitution base date. However, the following stocks are excluded from thestock 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 necessary.
• Stocks assigned for delisting
Stocks assigned for delisting are not included in the universe.
• Stocks under supervision (examination) and stocks under supervision (confirmation)
Stocks under supervision (examination) and stocks under supervision (confirmation)that are not part of the index composition immediately prior to regularly scheduledreconstitutions are not included in the universe.
• Tender offer target companies
Stocks that are the targets of tender offers may be removed from the universe of stock
selection only if all of the following requirements are met:
– the offer close date is between the periodic reconstitution base date and theperiodic reconstitution date;– the company conducting the tender offer plans to acquire all the outstanding sharesin the target company; and– 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/real estate 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 exceptions
Latent stock, warrants, and rights on them are excluded. The Bank of Japan (BOJ) is
also excluded.

5.

Tokyo Stock Exchange (Prime Market, Standard Market, Growth Market, TOKYO PRO Market), Nagoya
Stock Exchange, Sapporo Securities Exchange, and Fukuoka Stock Exchange

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3.2. Stock selection method
Stocks eligible for inclusion in the index are selected from stocks that have increased theirdividends consecutively for a set number of years. However, stocks are subject to priorscreening in order to limit inclusion in the index of stocks with low market caps and low
liquidity.
3.2.1. DPS
DPS criteria are as follows.
• Each one-year period is a fiscal year (i.e., April through March of the following year).
• Special and commemorative dividends are excluded.
• Stock splits and reverse stock splits are taken into account.
• The DPS before listing of a newly listing parent company is calculated by applying themerger ratio to the DPS of the delisted subsidiary or the merged entity, whichever has
the largest free float–adjusted market cap the day before its delisting[6] .
3.2.2. Stock selection process(1) The universe comprises the top 98% of stocks in the stock selection universe in termsof free float–adjusted market cap.
(2) Stocks ranked in the bottom 10% of stock selection universe (1) above in terms of
average trading value over the past 60 trading days are excluded.
(3) Stocks are included for which actual DPS has increased[7] annually during a specified
number of years of consecutive increases (which we refer to below as the “base numberof years”), backdating from the fiscal year before the periodic reconstitution year. Thebase number of years remains the same as for the previous periodic reconstitution[8] ,unless criterion (4) below applies.
(4) If the number of component stocks falls below 20 or exceeds 150, the base number ofyears will be changed, and stocks selected accordingly. For details see section
3.2.3. Adjustments to stock number restrictions.

Fig. 2: Overview of stock selection process for Nomura Japan Consecutively Increased Dividend Stock Index

Source: Nomura

6.
7.
8.

This rule applies with effect from 2015 periodic reconstitution.
The start or resumption of dividend payments is not regarded as dividend increases.
We have assumed base number of years as five as of 30 November 2000 stock selection.

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3.2.3. Adjustments to stock number restrictions
The base number of years for the portfolio is changed to ensure that the index contains
between 20 and 150 stocks at the time of the periodic reconstitution[9] .
• When the number of stocks meeting criterion (3) above exceeds 150
The base number of years is increased by one year at a time until the number ofcomponent stocks totals 150 or less. If the number of component stocks falls below 20
as a result of the base number of years being increased, stocks that are eligible forselection with that base number of years are selected first. Next, from among
candidate stocks that were selected at the stage when the base number of years was
one short of the requisite number but that were not eligible for selection when thebase number of years was determined (*1), stocks for which DPS forecasts werehigher in the fiscal year of the periodic reconstitution than actual DPS in the previous
fiscal year are included in descending order of their free float–adjusted market cap. If
the number of component stocks still fails to reach 20, stocks in (*1) are to be included
in descending order of their free float–adjusted market cap.
• When the number of stocks meeting criterion (3) falls short of 20 minimum
The base number of years is decreased by one year each until the number ofcomponent stocks totals 20 or more. If the resulting number of stocks exceeds 150,
the base number of years is determined at the stage immediately before, and all
stocks are included that are eligible with that base number of years. Next, from among
candidate constituent stocks that were selected at the stage when the base number ofyears was one short of the set number but that were not eligible for selection when thebase number of years was determined (*2), stocks with higher DPS forecasts in thefiscal year of the periodic reconstitution than actual DPS in the previous fiscal year will
be included in descending order of their free float–adjusted market cap. If the numberof component stocks still fails to reach 20, stocks in (*2) are to be selected indescending order of their free float–adjusted market cap.
If after reducing them one by one, the base number of years reaches one and thenumber of stocks still fails to reach 20, any stocks that meet the selection criteria are
included first. Next, from among stocks selected after processes (1) and (2) in 3.2.2(*3), stocks are selected that have higher DPS forecasts in the fiscal year for theperiodic reconstitution than actual DPS in the previous fiscal year will be included, indescending order of free float–adjusted market cap. If the number of component
stocks still fails to reach 20, stocks in (*3) are to be selected in descending order of
their free float–adjusted market cap.

9.

As a result of this rule being applied, the number of base years for consecutive increased dividends was fivein 2007 and six thereafter.

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4. Unscheduled reconstitutions
4.1. Response to stock swaps, stock transfers, etc[10]• Stock swaps, mergers, etc
When a stock is delisted because it is about to become a wholly owned subsidiary or
be merged into another company, it will continue to be included in the index after its
delisting but removed from the index on the day of the merger. Following its delisting,and until its removal from the index, the stock's valuation will be based on the market
value of the company that will become the parent or the surviving company multipliedby the exchange or merger ratio.
• Stock transfers, etc
When an unlisted parent company assumes the operations of another company andbecomes listed after a short period of time, the stock of the wholly owned subsidiary isremoved from the index on the date of the parent company's listing. The price of thedelisted subsidiary used is the price on the day before its delisting.

4.2. Removal of stocks• Designation as securities to be delisted[11]Stocks designated as securities to be delisted will be removed from the index fourbusiness days 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 fordelisting on one or more of the markets will not be removed.
• Delisting
Stocks delisted for reasons other than those noted in Section 4.1 will be removed
from the index on the delisting date.
• Marked loss of eligibility for inclusion in stock selection universe
In the case of an event that is considered to seriously damage a component stock's
eligibility for inclusion in the stock selection universe, the stock may be removed fromthe index following an official announcement by the company in question, the stock
exchange, or a government/regulatory agency.

4.3. Announcement of unscheduled reconstitutions
As a general rule, an announcement will appear on our website by five business days
before an unscheduled reconstitution, except in cases of unforeseen circumstances orwhen information cannot be confirmed.

10.
11.

This rule applies from April 2002.
This rule applies from 21 April 2010. Prior to 28 December 2001, stocks designated as securities to bedelisted were removed on the date of the designation. Effective from 29 December 2001 through 23 August
2009, they were removed two business days after the designation, and from 24 August 2009 through 20
April 2010, three business days after the designation.

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5. Index calculation
5.1. Calculation of index values
The index must be protected from changes in share price and market capitalization thatare not due to market fluctuations. This is done by adjusting the index's base market
capitalization as follows.
5.1.1. Index base date, index base value, announcement date
The base date for the Nomura Japan Consecutively Increased Dividend Stock Index is 29
December 2000 (= 10,000).
The index was launched on 21 August 2015.
Index values before this announcement date are calculated according to the rules
pertaining at the time for reference purposes.
5.1.2. Index excluding dividends
Base market cap(t ) = market cap(t -1) + adjusted market cap(t )[12]5.1.3. Index including dividends
Base market cap (t ) = market cap (t -1) + adjusted market cap (t ) - adjusted total
dividends (t )[13]

5.1.4. 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 dividend forecast is used (or where unavailable the Toyo Keizai
forecast)[14] . In the event of a difference between the dividend forecast and the actual
dividend, the base market capitalization is adjusted on the last business day of the monthof the company's earnings announcement. If the company announces its earnings on thelast business day of the month, the adjustment is made on the last business day of thefollowing month.

12.
13.
14.

Calculated as change in market cap as a result of changes in the capital structure of a component stock, oras change in market cap as a result of changes in component stocks.
Differences between dividend forecast and actual dividend are calculated by subtracting the dividend
forecast from the actual dividend.
This rule applies with effect from the fiscal year ended December 2011. Prior to this date we use the actual
dividend on the ex-dividend date.

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5.2. Adjusting the base market capitalization
Adjustments in the base market capitalization take place when a change in the capital
structure of a component stock causes an increase or decrease in market capitalizationthat is not due to market changes, or when a change of component stock causes anincrease or decrease in market capitalization.
However, no adjustment to base market capitalization is made for changes in capital
structure that do not involve payment, such as stock splits and reverse stock splits, asthese do not affect market capitalization.
Fig. 3: Timing of adjustments resulting from changes in capital structure

Change in capital structure
Stock transfer, stock swap, merger

Adjustment date
Date of listing change

Stock

Corporate divestiture (company/division
Ex-rights datereplacement spinoff)

Capitalincrease

Not used[15]Replacement datePrevious day's price

Rights offering

Ex-rights dateIssue price

Gratis allocation of stock acquisitionrightsEx-rights date

Exercise price

Gratis allocation of treasury stock

Ex-rights datePrevious day's price

Public offering

Business day following payment date (listing date 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

Conversion of preferred stock

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 newshares for which rights were exercised becomesknown

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

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 datePrevious day's price

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 (orPrevious day's pricethe last business day of the following month if thedisclosure is made within five business days of themonth-end)

Exercise of stock acquisition rights

Other

Previous day's price

Stock replacement

Conversion of CBs

Capitalreduction

Share price used

Source: Nomura

15.

The base market capitalization is adjusted for the reduction in capital. A reduction in capital is defined asfollows:(1) when the divesting entity does not announce the value of the divested division or of the shares ofthe divested (spun-off) company, capital is reduced by the amount by which the company's 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 is reduced by the value of the division or the valueof the divested company’s shares multiplied by the total number of shares.

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5.3. Index maintenance
Component stocks and the number of shares in each stock included in the index arechanged using the methodology set out in this rulebook. Component stocks are also
replaced in periodic and unscheduled reconstitutions and when necessary for otherreasons.
When the following changes in capital structure result in a change in the number ofshares outstanding for index calculation purposes, for a particular stock, the index
inclusion ratio is changed so that the number of shares in the stock that are included in
the index does not change.
• Capital increase via third-party placement• Retirement of treasury stock• Exercise of convertible bonds with stock acquisition rights, exercise of bonds withstock acquisition rights, conversion of preferred shares, exercise of stock acquisitionrights• Stock swap, stock transfer, merger[16]• Share allotment• Public offering• Rights offering refusal• Rights issue• Corporate divestiture (new shares in surviving company)• Other adjustments

16.

When the wholly owned subsidiary (merged entity) is an index component, the index inclusion ratio of thewholly owning parent (merging entity) is changed, so that the total of the product of the number of shares of
the wholly owned subsidiary (merged entity) and the merger or exchange ratio for each stock is to bereflected.

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6. Data Service
Nomura Japan Consecutively Increased Dividend Stock Index data provision[17]Data for the Nomura Japan Consecutively Increased Dividend Stock Index are published
via the following.
Website (Japanese only): http://qr.nomura.co.jp/jp/ncid/index.html* Data on component stocks may only be accessed via paid subscription agreement todata services.

The Nomura Japan Consecutively Increased Dividend Stock Index is 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 business activities or services that any index user and/or its affiliates undertakes withthe 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.

17.

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
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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
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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.
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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
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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
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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.
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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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