First-Ever Individual Shareholder Satisfaction Study by J.D. Power: Factors Related to Corporate
Governance Code Account for 40% of Overall Satisfaction
Toyota Motor, Sumitomo Mitsui Financial Group, SBI Holdings and Tokio Marine Holdings Rank Highest
in Respective Segments
TOKYO, 19 April. 2024 — With Japan's cross-shareholding ratio falling to an all-time low and the newNISA (a tax exemption program for small investment programs that began in January 2024) with anindefinite tax exemption period, individual shareholders who are part of the long-term stableshareholder base are attracting increasing attention in the financial market. In addition, while pressure
from government and institutional investors to improve corporate governance is increasing withgrowing global awareness of ESG (Environmental, Social, and Governance), issues related tocertification fraud and insurer fraud claims have been widely covered in the media. J.D. Power
perceives that the inexistence of evaluation with rankings on the comprehensive basis is one of themain reasons that cause asymmetry of information. To address these, J.D. Power has conducted afirst-ever study to serve as an indicator for individual shareholders when deciding on mid- to long-term
investment targets as well as to help companies in selected segments understand their position,strengths and weaknesses and use the data for improvement activities.
The J.D. Power 2024 Japan Individual Shareholder Satisfaction Study,SM released today, includes fourindustries (automobile, bank, securities and insurer), and measures overall individual shareholder
satisfaction with respective companies, including their profitability and corporate governance efforts.
“This study measures overall satisfaction in terms of whether individual shareholders trust a company
for mid- to long-term investment and data may be regarded as a performance report of that company’s
management team, including corporate governance,” said Kiichi Umezawa, managing director of Japan
Global Business Intelligence at J.D. Power. “Corporate governance aspects have often been discussed
at an individual level, such as “diversity in the board” and “fair and reasonable transactions withsuppliers,” but an overall evaluation by shareholders that includes data has not often been discussed.
This makes it difficult to compare overall company performance, which leads to lenient competition
among companies. J.D. Power perceives that this environment does not provide sufficient incentive forcompanies to improve. By presenting the overall evaluation with rankings, J.D. Power is hopeful that
this study will encourage each company to work toward improvement.”
Following are some of the key findings of the 2024 study:•Factors related to Corporate Governance Code account for 40% of overall shareholder
satisfaction: Overall satisfaction of individual shareholders is evaluated based on seven factors:
Profitability/Shareholder Return; Business and Products/Services; Financial Stability; Securing theRights and Equal Treatment of Shareholders; Ensuring Appropriate Information Disclosure andTransparency; Responsibility of the Board; and Appropriate Cooperation with Stakeholders OtherThan Shareholders. Four of these factors⎯Securing the Rights and Equal Treatment ofShareholders; Ensuring Appropriate Information Disclosure and Transparency; Responsibility of theBoard; and Appropriate Cooperation with Stakeholders Other Than Shareholders⎯are in line with
the Corporate Governance Code released by the Tokyo Stock Exchange, Inc. Statistical analysis ofthe effect of each factor on overall satisfaction finds that the Corporate Governance Code-related
factors together account for 40% of overall satisfaction while Profitability/Shareholder Return andjdpower-japan.com
japan.jdpower.com

Business and Products/Services have the highest importance weights, 21% each. Financial market
players generally perceive that individual shareholders are generally more interested in shareholder
dividends and benefits and less interested in more difficult issues such as corporate governance.
However, as corporate fraud issues and inappropriate transactions with business partners are
increasingly covered in the media, more shareholders say they “don’t agree” or “somewhatdisagree” with the following statements regarding corporate governance: “the board is constituted
in a manner to achieve both diversity and appropriate size” and “independent directors fulfill theirroles” than they do for other statements, indicating that individual shareholders are not apathetic
about corporate governance.
•Generational gaps in reasons to invest: Among the top three reasons in all four industries includedin the study to invest in stocks, the number one reason shareholders cite is “shareholder dividendis attractive” (50%). This is followed by “the stock price is expected to rise in the future” (43%) and“future growth of the company can be expected” (32%). There are no differences in order byindustry segment, but there are differences by age group. While there are no significant differencesin the top three reasons, there are significant differences among age groups. Shareholders in the40s and 50s groups cite “the company has a good reputation” (18%) and shareholders in the 60sage group cite the same at 16%; the percentage increases to 31% among those in their 20s and30s, representing more than a 10-point gap. Furthermore, for the statement “recommended inpersonal social media/video sharing sites (Facebook, Instagram, YouTube, etc.),” while the range
was as low as 1% in the 60s group and 5% in the 40s and 50s groups, the percentage jumps to 17%
among those in their 20s and 30s, which confirms the influence of social media and video sites
particularly among young people.

•Divergence in overall satisfaction within segment varies across industries: When comparing
overall satisfaction scores by brand within all four industry segments, the average scores range
from 671 (on a 1,000-point scale) to 690. However, divergences between the top score and thebottom score vary among the four segments. More specifically, whereas the gaps between the top
and the bottom are around 100 points in the bank, securities and insurers segments, thedivergence widens to more than 220 points in the automobile segment. The difference is not due
to scores for the four Corporate Governance Code-related factors but for scores related to thegeneral investment-related factors, i.e., Profitability/Shareholder Return; BusinessProducts/Services; and Financial Stability.

Study Rankings
Toyota Motor ranks highest among automobile companies,1 with a score of 749. Honda Motor (710)
ranks second and SUBARU (657) ranks third.
Sumitomo Mitsui Financial Group ranks highest among banks,2 with a score of 720. Mitsubishi UFJ
Financial Group (688) ranks second and Resona Holdings (660) ranks third.
SBI Holdings ranks highest among securities companies,3 with a score of 707. Daiwa Securities Group(681) ranks second and Tokai Tokyo Financial Holdings (676) ranks third.
Tokio Marine Holdings ranks highest among insurers,4 with a score of 729. MS&AD Insurance GroupHoldings (723) ranks second and Dai-Ichi Life Holdings (671) ranks third.
The 2024 Japan Individual Shareholder Satisfaction Study measures individual shareholder satisfaction
with companies, including corporate governance, in four segments: automobile, bank, securities andinsurer. Respondents are individual shareholders who have continuously held shares of companies
listed on the TSE Prime Market that meet the criteria for more than a year and who owned at least 100shares at the time of the study. If respondents hold multiple stocks in each segment, they are asked toevaluate the company in which they have the largest amount of investment assets at the time of thestudy. The study is based on responses from 6,088 individual shareholders and was fielded in March
2024. Overall satisfaction is measured by examining seven factors (listed in order of importance):
Profitability/Shareholder Return (21%); Business and Products/Services (21%); Financial Stability (18%);
Securing the Rights and Equal Treatment of Shareholders (10%); Ensuring Appropriate Information
Disclosure and Transparency (10%); Responsibility of the Board (10%); Appropriate Cooperation withStakeholders Other Than Shareholders (9%).

1 Automobile: Stocks that fall under the category of "Transportation Equipment" in the TSE 33 sectors that are finishedpassenger car manufacturers with a market capitalization of 500 billion yen or more as of the last business day of December
2023.
2 Bank: Stocks that fall under the category of "Banking" in the TSE 33 sectors with a market capitalization of at least 1 trillion

yen as of the last business day of December 2023.
3 Securities: Stocks that fall under the category of "Securities and Commodity Futures" in the TSE 33 sectors, with securities-related revenues accounting for more than 50% of total revenue and with a market capitalization of 100 billion yen or more asof the last business day of December 2023.
4 Insurer: Stocks that fall under the category of "Insurance" in the TSE 33 sectors that have a market capitalization of 800

billion yen or more as of the last business day of December 2023.

About J.D. Power
J.D. Power is a global leader in consumer insights, advisory services and data and analytics. A pioneerin the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understandconsumer behavior, J.D. Power has been delivering incisive industry intelligence on customer
interactions with brands and products for more than 55 years. The world's leading businesses acrossmajor industries rely on J.D. Power to guide their customer-facing strategies.
J.D. Power has offices in North America, Europe and Asia Pacific. To learn more about the company’sbusiness offerings, visit https://japan.jdpower.com/.
Media Relations Contacts
Kumi Kitami, J.D. Power; Japan; 81-3-6809-2996; release@jdpa.com
Geno Effler, J.D. Power; USA; 714-621-6224; media.relations@jdpa.com
About J.D. Power and Advertising/Promotional Rules www.jdpower.com/business/about-us/pressrelease-info.

###NOTE: Four charts follow.

Year / Project / Study Name

J.D. Power
2024 Japan Individual Shareholder Satisfaction StudySM
Overall Customer Satisfaction Index Ranking(Based on a 1,000-point scale)

Automobile

Toyota Motor

749

Honda Motor

710

Segment Average

679

SUBARU

657

Nissan Motor

527

Mitsubishi Motors

525

NOTE: Brand/Segment are not rank eligible unless they meet study criteria by J.D. Power, including insufficient sample.
Source: J.D. Power 2024 Japan Individual Shareholder Satisfaction StudySM
Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying
J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores,
and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in thisrelease or J.D. Power survey results without the express prior written consent of J.D. Power.

Year / Project / Study Name

J.D. Power2024 Japan Individual Shareholder Satisfaction StudySM
Overall Customer Satisfaction Index Ranking(Based on a 1,000-point scale)Bank

Sumitomo Mitsui Financial Group

720

Mitsubishi UFJ Financial Group

688

Segment Average

671

Resona Holdings

660

Mizuho Financial Group

631

Japan Post Bank

628

NOTE: Brand/Segment are not rank eligible unless they meet study criteria by J.D. Power, including insufficient sample.
Source: J.D. Power 2024 Japan Individual Shareholder Satisfaction StudySM
Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying
J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores,
and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in thisrelease or J.D. Power survey results without the express prior written consent of J.D. Power.

Year / Project / Study Name

J.D. Power
2024 Japan Individual Shareholder Satisfaction StudySM
Overall Customer Satisfaction Index Ranking(Based on a 1,000-point scale)Securities

SBI Holdings

707

Daiwa Securities Group

681

Segment Average

678

Tokai Tokyo Financial Holdings

676

Matsui Securities

671

Monex Group649

Nomura Holdings

643

NOTE: Brand/Segment are not rank eligible unless they meet study criteria by J.D. Power, including insufficient sample.
Source: J.D. Power 2024 Japan Individual Shareholder Satisfaction StudySM

Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying
J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores,
and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th isrelease or J.D. Power survey results without the express prior written consent of J.D. Power.

Year / Project / Study Name

J.D. Power
2024 Japan Individual Shareholder Satisfaction StudySM
Overall Customer Satisfaction Index Ranking(Based on a 1,000-point scale)

Insurer

Tokio Marine Holdings

729

MS&AD Insurance Group Holdings

723

Segment Average

690

Dai-Ichi Life Holdings

Japan Post Insurance

671

624

NOTE: Brand/Segment are not rank eligible unless they meet study criteria by J.D. Power, including insufficient sample.
Source: J.D. Power 2024 Japan Individual Shareholder Satisfaction StudySM

Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying
J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores,
and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th isrelease or J.D. Power survey results without the express prior written consent of J.D. Power.