September 5, 2011

Press Release
Nikko Asset Management Co., Ltd.

Results of Exercise of Voting Rights at June 2011 GSMs
Nikko Asset Management Co., Ltd. (“Nikko AM”) announced today the results of its exercise ofvoting rights in proposals made at the general shareholder meetings of 1,852 invested companies
between July 2010 and June 2011. Nikko AM voted against 2,496 of a total 19,811
company-generated proposals, resulting in a 12.6 percent ratio of nay votes on such proposals.
Details may be found in the table below, Status of Exercise of Voting Rights by Proposal Type.
In aiming to ensure the fulfillment of its fiduciary responsibility by appropriately exercising its voting
rights in the companies in which it invests, Nikko AM established its Guidelines for the Exercise of
Voting Rights in 2002 and exercises its voting rights based on the content of those guidelines, while
also making revisions to them when so required.
Due to reasons such as significantly low dividend levels in comparison with profits, Nikko AM voted
against 86 of 1,285 proposals on the appropriation of surpluses, which has resulted in a 6.3% nay
ratio increase from 0.4% in the previous term to 6.7%. As a result of partially revising last year'sguidelines in order to more rigorously assess the independence of external directors, Nikko AM voted
against 1,295 of 13,575 proposals on the election or dismissal of directors. Accordingly, the nay ratio
in this category rose by 3.3% from 6.2% in the previous term to 9.5%. In opposition to payments toexternal directors and auditors, Nikko AM rejected 150 of 390, or 38.5% of proposals on retirement
benefit payments.
Proposals on anti-takeover measures, such as so-called "poison pill" defenses, increased to 187
this term. Based on the belief that the trading of shares and transfer of control is something that ought
to happen, whether it be friendly or hostile, Nikko AM is generally opposed to anti-takeover measuresthat may immobilize current management and discourage efficient company operations. However, if it
is clear that the objective of a takeover is fair and permissible in light of the principles of shareholder
equality, Nikko AM closely examines such proposals from a comprehensive point of view. In suchcases, Nikko AM thoroughly engaged in multilateral discussions from various angles, such aswhether or not there would be room for management to arbitrarily utilize certain defense measures.
As a result, the nay ratio increased to 97.9% from 95.5% in the previous term.

Nikko AM was the first asset management company in Japan to release results of its exercise ofvoting rights, and has been doing so since 2007. The past results of its exercise of voting rights areavailablefor
yourreferenceon
thefollowing
pageonourwebsite.
http://en.nikkoam.com/voting-rights/results
Nikko AM will continue to fulfill its fiduciary responsibility through active dialogue with the companies
in which it invests.

Nikko Asset Management Co., Ltd.
Midtown Tower, 9-7-1 Akasaka, Minato-ku, Tokyo 107-6242
www.nikkoam.com

Registration Number: Director of the Kanto Local Financial
Bureau (Financial instruments firms) No. 368
Member Associations: The Investment Trusts Association,
Japan/Japan Securities Investment Advisers Association

Status of Exercise of Voting Rights by Proposal Type
1. Company-generated Proposals
July 2010 – June 2011
Proposal(For Ref.) July 2009 – June 2010

Subtotal

Yea

Nay

Nayratio

Subtotal

Yea

1,285

1,199

86

6.7%

1,268

1,263

50.4%

474

414

60

12.7%

596

505

91

15.3%

Election/Dismissal of directors

13,575

12,280

1,295

9.5%

12,972

12,168804

6.2%

Election/Dismissal

3,184

2,558

626

19.7%

1,801

1,330

471

26.2%

Retirement benefit payments

390

240

150

38.5%

360

259

101

28.1%

Revision of executive remuneration amount

352

336

164.5%

113

106

76.2%

Granting of stock acquisition rights

184

124

60

32.6%

217

163

54

24.9%

Restructuring

52

41

1121.2%8976

1314.6%

Other company-generated proposals

315

123

192

61.0%

518

349

169

32.6%

Granting of stock acquisition rights

187

4183

97.9%

154

7147

95.5%

Selection of corporate auditors

43

43

00.0%

50

48

2

4.0%

Other

85

76

910.6%

314

294

206.4%

19,811

17,315

2,496

12.6%

17,934

16,219

1,715

9.6%

Appropriation of surpluses
Partial revision to articles of incorporation

ofcorporate

Nay
ratio

Nay

auditors(preventive measures against acquisition)

Total

2. Shareholder Proposals
July 2010 – June 2011
Proposal(For Ref.) July 2009 – June 2010
Yea
ratio

Subtotal

Yea

30.0%

7070.0%

471

5.3%

62

557

8.1%

37136

2.7%

46

541

10.9%

115

5110

4.3%

115

10105

8.7%

Subtotal

Yea

Appropriation of surpluses

30Election/Dismissal of officers

75

Other proposals

Nay

Yea
ratio

Nay

(incl. revision to articles of incorporation)

Total

Nikko Asset Management Co., Ltd.
Midtown Tower, 9-7-1 Akasaka, Minato-ku, Tokyo 107-6242
www.nikkoam.com