Nikkei 225 Domestic Exposure 50 Index
Nikkei 225 Global Exposure 50 Index
Index Guidebook

Nikkei Inc.

・ This document is the index guidebook of the Nikkei 225 Domestic Exposure 50Index and Nikkei 225 Global Exposure 50 Index calculated and published byNikkei Inc. (Nikkei). The document is drawn up by Nikkei and it would be changed
or modified corresponding to the revision of the index calculation rule etc.
・ Copyright of this document is owned by Nikkei, and any copi es, reprints andreproduction of this document are prohibited without the prior approval of Nikkei.
This document is prepared solely for the understanding of the index that Nikkei
calculates and publishes, and it is not to be construed as a solicitation or an offer
to buy or sell any securities or related financial instruments.
・ This English document is a translation of the original document dated April xx
2019 in Japanese and may not be an entirely accurate translation of the original
Japanese document. In any case where differences arise between the English
version and the original Japanese version, the original Japanese document willprevail.

(October 2, 2023 version)

GB-DGE-E-20231002

1: Introduction
Nikkei 225 Domestic Exposure 50 Index and Nikkei 225 Global Exposure 50 Index
are the equal-weighted stock indexes, whose constituents are chosen from the Nikkei
225 using a gauge “Oversea Sales Ratio” (the ratio of overseas sales from outside
Japan to the gross sales of each company).

2: Name(1) (Japanese)(English)(Japanese)(English)

Official ： 日 経 平 均 内 需 株 50 指 数
Abbreviation ： 日 経 内 需 株 50
Official： Nikkei 225 Domestic Exposure 50 IndexAbbreviation： Nikkei Domestic Exposure 50
Official ： 日 経 平 均 外 需 株 50 指 数Abbreviation ： 日 経 外 需 株 50
Official： Nikkei 225 Global Exposure 50 Index
Abbreviation： Nikkei Global Exposure 50

3: Constituents Management(1) Basic Point
・ The number of constituents of the Nikkei 225 Domestic Exposure 50 Index(Nikkei Domestic Exposure 50) and the Nikkei 225 Global Exposure 50 Index( Nikkei Global Exposure 50 are fifty respectively in principle.
・ The Periodic Review for both indexes is conducted at the end of October everyyear. Although the Extraordinary Removal in the constituents results in the index
calculation with less than fifty issues, the constituent will not be added until t hetotal number of the constituents becomes less than forty five. The number will
be back to fifty at the Periodic Review.
(2) Universe
The index constituents are selected from the Nikkei Stock Average (Nikkei 225)
constituents.
(3) Periodic Review
・ The Base Date of the Periodic Review shall be the 2nd business day of Octoberof each year. After 2019, each constituent stock shall be selected by the processdescribed below and the constituent change for both indexes shall be effectiveon the final business day of October. Nikkei make changes to the constituents

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with an appropriate notice period in advance of the effective date.
・ For the Nikkei Domestic Exposure 50, the Periodic Review shall conduct by thefollowing procedure.
① As a result of the Extraordinary Removal s, if the number of theconstituents is less than fifty on the Base Date, the non-constituent stockwith lowest “Overseas Sales Ratio” shall be added sequentially so that thenumber becomes fifty.
② If the difference of “Overseas Sales Ratio” between a constituent stockwith the highest “Overseas Sales Ratio” and a non-constituent stock withthe lowest “Overseas Sales Ratio” is more than ten percent points, theformer constituent stock shall be a deleted candidate, and the latter nonconstituent stock shall be an added candidate. This shall not be applied tothe stocks added under ① .
③ Repeat step ② until no stock meets the criteria.
However, for the each step of ① to ③ , in case that companies have the same
“Overseas Sales Ratio”, the company with higher liquidity (average daily trading
values for a one year) will become an added stock preferentially.
・ For the Nikkei Global Exposure 50, the Periodic Review shall conduct by thefollowing procedure.
① As a result of the Extraordinary Removals, if the number of theconstituents is less than fifty on the Base Date, the non-constituent stockwith highest “Overseas Sales Ratio” shall be added sequentially so thatthe number becomes fifty.
② If the difference of “Overseas Sales Ratio” between a constituent stockwith the lowest “Overseas Sales Ratio” and a non-constituent stock withthe highest “Overseas Sales Ratio” is more than ten percent points, theformer constituent stock shall be a deleted candidate, and the latter stock
shall be an added candidate. This shall not be applied to the stocks added
under ① .
③ Repeat step ② until no stock meets the criteria
However, for the each step of ① to ③ , in case that companies have the same
“Overseas Sales Ratio”, the company with higher liquidity (average daily trading
values for a one year) will become an added stock preferentially.
・ "Oversea Sales Ratio" is calculated based on oversea sales on a customer
location basis reported by Securities Reports of the companies , “Yuho” inJapanese, whose accounting fiscal year has ended till March in each year. If acompany doesn't disclose the oversea sales on the customer location basis on theCopyright © Nikkei Inc. All rights reserved.

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designated place in the report but disclose the figure similar to the oversea sales
on the customer location basis, the figure shall be used. Those figures are rounded
down by five percent intervals (e.g. If the actual computed ratio is 58.5%, 55%
shall be used as the “Overseas Sales Ratio” of the company).
・ The "Oversea Sales Ratio" of a company is less than 10% (including the case thata company doesn't disclose the oversea sales because of its low oversea salesratio) shell be deemed as 5% uniformly. In case that the "Oversea Sales Ratio" is
not reported by a newly established company due to a business integration in its
first Securities Reports, the simple summation of the oversea sales of the exintegration companies shall be used for the calculation of the “Oversea SalesRatio”. If those ex-integration companies do not disclose the oversea sales
because of low oversea sales ratio, the Ratio shall be deemed as 5%.
(4) Extraordinary Removal/Replacement
・ In case that a constituent is removed from the Nikkei 225, the constituent stock
will be deleted from the Nikkei Domestic Exposure 50 or the Nikkei Global
Exposure 50 on the same effective day as the removal from the Nikkei 225.
・ As a result of the Extraordinary Removals, new constituents will not be added
until the number of constituents becomes less than forty five. However, in cases
where a newly listed stock which succeeds the substance of such removed stockis added to Nikkei 225, the newly listed stock will r eplace on the date of its
listing (same date as Nikkei 225 in principle).
・ If it becomes apparent that the number of the constituents becomes less thanforty five, the new constituents shall be added so that the number becomes forty
five. The new constituent is determined based on the ranking of “Overseas SalesRatio” which was used for the last Periodic Review. For Nikkei Domestic
Exposure 50, one or more non-constituent stocks with the lowest “OverseasSales Ratios” will be added. For Nikkei Global Exposure 50, one or more nonconstituent stocks with the highest “Overseas Sales Ratios” will be added. Incase that companies have the same “Overseas Sales Ratio”, the company withhigher liquidity (average daily trading values for a one year) will be added.
・ Nikkei adds the new constituents with an appropriate notice period in advanceof the effective date.

(5) Constituents in the past and on the launch date・ With regards to the Nikkei Domestic Exposure 50 constituents used for the
retroactive index calculations (see 4-(7) below), Nikkei chose fifty issues withfifty lowest “Overseas Sales Ratio” from the Nikkei 225 constituents on the Base
Date of each year before 2017 and change the constituents on the final business
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day of the month. In case that companies have the same “Overseas Sales Ratio”,
the company with higher liquidity (average daily tra ding values for a one year)
will be prioritized to add and the rule of the Extraordinary Replacements
described in the above (4) has been applied for the retroactive calculations.
・ With regards to the Nikkei Global Exposure 50 constituents used for the
retroactive index calculations (see 4-(7) below), Nikkei chose fifty issues with
fifty highest “Overseas Sales Ratio” from the Nikkei 225 constituents on theBase Date of each year before 2017 and change the constituents on the final
business day of the month. In case that companies have the same “Overseas SalesRatio”, the company with higher liquidity (average daily trading values for aone year) will be prioritized to add and the rule of the Extraordinary
Replacements described in the above (4) has been applied for the retroactive
calculations.
・ The constituents in the period between the Inception Date (December 28, 2001)
and the timing of the periodic constituent changes in 2002 for both indexes are
selected on the Inception Date as the Base Date in the above-mentioned way andapplied on the same day respectively.
・ The constituents of both indexes on the launch date were selected as of October
2, 2018 as the Base Date in the above-mentioned way
after removing
companies delisted till the launch date, and the removals were applied as ofOctober 31, 2018 respectively.

4： Index Calculation(1) Basic Point
・ The indexes are calculated by equal -weighted methodology. However, theconstituents’ weights with low liquidity shall be halved. If the constituents of
the Nikkei 225 are in the lowest 20 percentile as ranked by the average daily
trading values for a one year, such stocks are treated as “low liquidity” stocks.
・ The index level on December 28 2001, the Inception Date is 10,000. The index
value of Nikkei 225 on the same day is 10,542.62.
・ The unit of the index is “points”. 3th digit is rounded to make the index with 2
digits after the decimal point.
・ Calculated on an end-of-day basis, using the share prices on the Tokyo Stock
Exchange.
(2) Calculation Formula・ The daily index value shall be calculated by the following formula.

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5Index value＝ Σ {Share price × Weight Factor} ÷ Divisor(3) Share price・ Prices used for the calculation are selected in the following order of priority.
① Special Quote or sequential trade quote、 ② Closing price、 ③ Base price(The base price is obtained based on the priority order of ex -rights theoreticalprice, the last special quote price or sequential trade quote p rice on the previous
day, and the closing price on the previous day. )(4) Weight Factor
・ The Weight Factor used for the index calculation (number of shares for the index)
shall be compiled on the Base Date of the Periodic Review by the following
formula. It is rounded down to integer number, truncating after the decimal
points

Weight Factor＝ 1 × Liquidity Factor / Share Price on the Base Date×10 8① Liquidity Factor
The Liquidity Factor is a factor to adjust the weight of the index constituent
corresponding to the relative liquidity in the Nikkei 225 components, which
is defined as the daily average trading values for the past one year.
The factor shall be defined as 1 for the top 80% constituents wi th the higher
liquidities, and 0.5 for those in the bottom 20% in terms of the liquiditymeasures.
② Split or reverse split of the constituent stock
After the Weight Factors are assigned, if an index constituent company makes
a stock split or reverse split, the Weight Factor shall be adjusted
corresponding to the ratio of the split o r reverse split on the ex-date.
・ For the Extraordinary Replacement in case that the number of the index
constituents is less than 45, the Weight Factors shall be determined based on thedata on the Base Date used to choose such new constituents while the Weight
Factors of the other issues, i.e. continuing constituents, remain unchanged.
・ In cases where a newly listed stock, which succeeds the substance of an excluded
stock due to the establishment of a holding company etc., is added on its listing
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6date, the weight factor for the stock to be added shall be determined bymultiplying the weight factor for the excluded stock by the integration ratio,
while also considering other factors so as to succeed the weight of the excludedstock.
(5) Divisor
・ The Divisor on December 28th 2001, the Inception Date is determined by thefollowing formula.

Divisor＝ Σ {Share prices × Weight Factor on the Inception Date} / 10000

・ After the Inception Date, the Divisor are changed every time when the index
constituents are changed by using the following formula.

Divisor tomorrow＝ Divisor today× (Σ {base prices next day of the index constituents for the next day× Weight Factor for the next day})÷ (Σ {base prices today of the today’s constituents× today’s Weight Factor})・ 5th digit is rounded to make the Divisor have 4 digits after the decimal point.
(6) Modification of the index value
・ If any event which affects the index value becomes known after the index iscalculated, such event is treated as if it occurred on the first index calculation
day after it becomes known and Nikkei reflects the modified data into the index
calculation from such date. In principle, Nikkei does not restate the past index
value.

(7) Retroactive calculation in the past・ The index is retroactively calculated to the Inception Date (December 28th2001=10,000) on an end-of-day basis.
・ The method to determine the constituents used for the retroactive calculation aredescribed in 3-(5).

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7

5: Others(1) Total Return Index calculation
Nikkei calculates following 4 indexes as the related indexes of the “Nikkei 225
Domestic Exposure 50 Index” and “Nikkei 225 Global Exposure 50 Index” by adding
the dividends and the net dividends excluding taxes respectively. These indexes arecalculated on an end-of-day basis.
- Nikkei 225 Domestic Exposure 50 Index (Total Return)- Nikkei 225 Global Exposure 50 Index (Total Return)- Nikkei 225 Domestic Exposure 50 Index (Net Total Return)- Nikkei 225 Global Exposure 50 Index (Net Total Return)The “Nikkei 225 Domestic Exposure 50 Index (Total Return)” and the “Nikkei 225
Global Exposure 50 Index (Total Return)” measure the performance of the “Nikkei
225 Domestic Exposure 50 Index” and the “Nikkei 225 Global Exposure 50 Index”,
including the both movements in the index prices and the reinvestment of thedividend incomes from the constituent stocks at the closing ex-dividend dates,
corresponding to the Weight Factor respectively. The “Nikkei 225 DomesticExposure 50 Index (Net Total Return)” and “Nikkei 225 Global Exposure 50 Index(Net Total Return)” will use the dividends after the deductions of the tax for thecalculation. The basic points for the index calculation such as the way to use
dividends shall adhere to the Nikkei 225 Total Return Index and the Nikkei 225 Net
Total Return Index.
(2) Index License
The Nikkei 225 Domestic Exposure 50 Index and the Nikkei 225 Global Exposure
50 Index are copyrighted materials calculated in a methodology independently
developed and created by Nikkei Inc. Nikkei Inc. is the sole exclusive owner of thecopyright and other intellectual property rights in the Nikkei 225 Domestic Exposure50 Index and the Nikkei 225 Global Exposure 50 Index themselves, the methodology
to calculate the Nikkei 225 Domestic Exposure 50 Index, the Nikkei 225 GlobalExposure 50 Index and the Nikkei Stock Average, the base, i.e. universe for theconstituents of the Nikkei 225 Domestic Exposure 50 Index and the Nikkei 225Global Exposure 50 Index. Licensing agreement with Nikkei is necessary ifcompanies intend to create Exchange Traded Fund, Index - linked funds or passive
funds, etc. It is also required to use this index for disseminating, providing, andshowing, etc. to the third party in the way as Nikkei decides.
(3) Disclaimer
Nikkei has no obligation to publish the Nikkei 225 Domestic Exposure 50 Index andCopyright © Nikkei Inc. All rights reserved.

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the Nikkei 225 Global Exposure 50 Index continuously, and Nikkei is not
responsible for any error, delay or omission in the Nikkei 225 Domestic Exposure50 Index and the Nikkei 225 Global Exposure 50 Index. Nikkei is entitled to change
the details of the Nikkei 225 Domestic Exposure 50 Index and the Nikkei 225 GlobalExposure 50 Index and to suspend or stop the calculation and the announcement ofthe indexes.
Although, in principle, the Nikkei 225 Domestic Exposure 50 Index and the Nikkei
225 Global Exposure 50 Index are calculated and maintained in accordance with theinformation provided here, Nikkei has discretion to take measures Nikkei deems
appropriate when the events which are not covered in this document happen or under
the circumstances where it is difficult to continue to calculate the indexes using thecurrent rules. In addition, the specifications described may be amended without
notice. Nikkei does not assume any loss or damage caused by the use of thisdocument.
The above-mentioned disclaimers shall be applied to the Nikkei Stock Av erage, thebase, i.e. universe for the constituents of the Nikkei 225 Domestic Exposure 50Index and the Nikkei 225 Global Exposure 50 Index.
This English document may not be an entirely accurate translation of the originalJapanese document. In any case where differences arise between the English version
and the original Japanese version, the original Japanese document will prevail.

(4) ContactIndex Business Office, Nikkei Inc.
Mail: index@nex.nikkei.co.jp

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9（ Appendix） Change of history in Index Guidebook

April 15, 2019 version

Initial version

Octoberversion

3: Constituents Management (4) Extraordinary
Removal/Replacement
Add the description in cases where a newly listed stock replaces aremoved constituent2,2023

4: Index Calculation (4) Weight Factor
Add the description in cases where a newly listed stock replaces aremoved constituent

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