Annex3.

Annex 3. Outline of JPX-Nikkei Index 400(Please refer to the guidebook for more details.)
Name

JPX-Nikkei Index 400
Abbrev.: JPX-Nikkei 400

No. ofConstituents

400 issues

Eligible Issues

TSE-listed issues (1st Section, 2nd Section, Mothers, JASDAQ)
Constituent selection and review will be conducted as follows.
[Selection Criteria]
Constituents are selected according to the following process and criteria.
（1） Screening① Screening by Eligibility Criteria
Issues are excluded from selection if they fall under any of thefollowing criteria.
・Listed for under 3 years (excluding technical listings)
・Liabilities in excess of assets during any of the past 3 fiscal years
・Operating deficit in all of the past 3 fiscal years
・Overall deficit in all of the past 3 fiscal years
・Designation as Security to be Delisted, etc.

Constituent
Selection/Review
Method② Screening by Market Liquidity Indicator
The top 1000 issues will be selected from those eligible, excluding theabove, in consideration of the following 2 items.
・Trading value during the most recent 3 years
・Market capitalization on the base date（2）Scoring based on Quantitative Indicators
The 1,000 issues selected in (1) will be scored according to the ranking of
the following 3 items. (1st: 1000 points – 1000th: 1 point). Then, overall
score is determined by aggregating those ranking scores with thefollowing weights. (There are handling rules for the overall scoring withnegative ROE and operating profit.)・3-year average ROE: 40%
・3-year cumulative operating profit: 40%
・Market capitalization on the base date: 20%
This document is prepared by Japan Exchange Group, Inc. (JPX), Tokyo Stock Exchange, Inc. (TSE) (hereinafter collectively called “the JPX group”) and Nikkei Inc. (Nikkei)
solely for the understanding of JPX-Nikkei 400, and is not to be construed as a solicitation for trading any securities or related financial instruments. JPX Group and Nikkei
shall accept no liability or responsibility for any loss or damage arising from errors, delays, or termination of the calculation or publication of JPX-Nikkei 400, changes to its
calculation or publication method, the use of JPX-Nikkei 400 or all or any part of this document or other similar events.

Copyright © 2014- by Japan Exchange Group, Inc., Tokyo Stock Exchange, Inc., and Nikkei Inc. All rights reservedAnnex3.

（3）Scoring based on Qualitative Factors
Following the scoring in (2), issues will be further scored based on thefollowing 3 items. This score is complementarily added to the quantitativescores explained above (2)*.
・Appointment of Independent Outside Directors (at least 2)
・Adoption or Scheduled Adoption of IFRS (pure IFRS)
・Disclosure of English Earnings Information via TDnet (CompanyAnnouncements Distribution Service in English)* The score is determined so that at most around 10 constituents aredifferent from those chosen with only quantitative score above (2).

（4）Determination of Constituents
Following scoring in (3), the 400 issues will be selected in descendingorder of high scores as constituents.

[Buffer Rule]
There is a preferential rule for previous year constituents.
Constituents selected in the previous year will be selected as long as theirscores are ranked within the top 440.

[Constituent Review]
A constituent review will be conducted on the last business day of Augusteach year with the last business day of June as the base date. (The result ofthe constituent review will be announced on the 5th business day of August)Calculation
MethodFree-float adjusted market capitalization-weighted (with 1.5% cap)
January 6, 2014 (Mon.)

Start of Calculation

Real-time dissemination (per 1 sec.) of the index via Tokyo Stock Exchange’s
Market Information System

Base Date/Value

August 30, 2013 / 10,000 points

This document is prepared by Japan Exchange Group, Inc. (JPX), Tokyo Stock Exchange, Inc. (TSE) (hereinafter collectively called “the JPX group”) and Nikkei Inc. (Nikkei)
solely for the understanding of JPX-Nikkei 400, and is not to be construed as a solicitation for trading any securities or related financial instruments. JPX Group and Nikkei
shall accept no liability or responsibility for any loss or damage arising from errors, delays, or termination of the calculation or publication of JPX-Nikkei 400, changes to its
calculation or publication method, the use of JPX-Nikkei 400 or all or any part of this document or other similar events.

Copyright © 2014- by Japan Exchange Group, Inc., Tokyo Stock Exchange, Inc., and Nikkei Inc. All rights reservedAnnex.3(Reference)JPX-Nikkei Index 400 Performance

Monthly return(Annualized)
JPX-NikkeiTOPIX400
End of Aug 2006 - End of Aug 2007

2.0%

-1.1%

End of Aug 2007 - End of Aug 2008

-22.6%-22.8%End of Aug 2008 - End of Aug 2009-21.9%-21.6%End of Aug 2009 - End of Aug 2010-12.6%-16.2%End of Aug 2010 - End of Aug 2011

-3.0%

-3.1%

End of Aug 2011 - End of Aug 2012

-1.6%

-3.3%

End of Aug 2012 - End of Aug 2013

41.0%

43.4%

End of Aug 2013 - End of Jul 2014

18.5%

17.8%

End of Aug 2006 - End of Jul 2014

-0.2%

-1.1%

*The index value above is calculated as its value on August 31, 2006 becomes 10000.

This document is prepared by Japan Exchange Group, Inc. (JPX), Tokyo Stock Exchange, Inc. (TSE) (hereinafter collectively called “the JPX group”) and Nikkei Inc. (Nikkei) solely for the understanding of JPX-Nikkei 400, and is not to be construed as a solicitation for trading any
securities or related financial instruments. JPX Group and Nikkei shall accept no liability or responsibility for any loss or damage arising from errors, delays, or termination of the calculation or publication of JPX-Nikkei 400, changes to its calculation or publication method, theuse of JPX-Nikkei 400 or all or any part of this document or other similar events.

Copyright © 2014- by Japan Exchange Group, Inc., Tokyo Stock Exchange, Inc., and Nikkei Inc. All rights reserved