Nomura Japan Equity High Dividend 70

Global Markets Research
29 March 2024

EQUITY: INDEX SERVICES DEPARTMENT

Index rulebook

Research Analysts
Japan index products
Index Services Department - NFRC
idx_mgr@nfrc.co.jp

The index is an equally weighted index which comprises 70 Japanese stocks with highly
estimated dividend yields. These constituents are selected considering both continuity of
dividends and investability based on predefined methodology.

• An equally weighted index that invests in 70 Japanese stocks with a high current-FY
dividend yield forecast• To take dividend sustainability into account, stocks that have recorded negative
recurring profits in any of the previous three years are excluded• Limited to stocks with a March, June, September, or December fiscal year-end to
facilitate quarterly dividend payments to passive investment funds that track it• Dividend forecasts are monitored, and any stock for which the dividend forecast has
fallen to zero is removed between periodic reconstitutions and replaced with a stockwith a high dividend yield forecast for the current fiscal year
• To take investability into account, stocks with a low daily average trading value or a
low free-float market cap are excluded• As a rule, the index is reconstituted annually

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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 Announcement of periodic reconstitutions
3 The Selection and Construction Method for Index Constituent Stocks
3.1 Universe
3.2 Terminology
3.3 Stock selection[2]3.4 Number of shares of the stock within the index
4 Unscheduled reconstitutions
4.1 Stocks for which the current FY dividend has fallen to zero
4.2 Newly listed stocks
4.3 Treatment of stock swaps, stock transfers, mergers, etc.
4.4 Removal of stocks
4.5 Announcement of unscheduled reconstitutions
5 Index calculation
5.1 Index base date, Index base values, Publication start date
5.2 Index market cap
5.3 Calculation of index values
5.4 Index maintenance
6 Information vendor codes and websites
For further information on the index
Disclaimer
Policies with regard to NFRC’s indices

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1 Introduction
The Nomura Japan Equity High Dividend 70 is an equally weighted index comprising 70 Japanese stocks with highdividend yields. It was developed as a tool to help passive investors achieve a consistently high dividend income. This
index is composed of 70 Japanese listed common stocks with the high forecast dividend yield for the current FY. Taking
dividend sustainability and investability into account.
Advantages of the Nomura Japan Equity High Dividend 70• It enables investors to invest in high dividend yield Japanese stocks easily and at low cost
• Stocks that have recorded negative recurring profits in any of the previous three years are excluded from the index
in order to take dividend sustainability into account• Component stocks are limited to those with a March, June, September, or December fiscal year-end in order tofacilitate quarterly dividend payments• To prevent the index’s average dividend yield from decreasing, component stocks with a current FY forecast
dividend of zero are removed during periodic reconstitutions• Investability is taken into account by setting certain criteria for free float–adjusted market cap and average daily
trading volume• The banding method is used to limit frequent replacements of stocks in periodic reconstitutions of the index

Fig. 1: Overview of Nomura Japan Equity High Dividend 70 stock selection process
All listed Japanese stocks, taking into account investability(covers 98% of all listed stocks on a free-float-adjusted basis)
Dividend sustainability andliquidity taken into accountStock screening criteria: (the following stocks are selected)●Actual recurring profits have not been negative in any of the past
three years●The current fiscal year is expected to end in March, June,
September, or December●In top 85% in terms of cumulative free-float-adjusted market cap●In top 500 in terms of average trading value over the past 60 days

Screening for high dividend yield stocks
Stock selection conditions:
Top 70 stocks are selected on the basis ofhigh current-FY dividend yield after taking
into account banding

Determination of individual stock weights forindex constituents

All stocks in the index are equally weighted.
(as of periodic reconstitution base date)

Source: Nomura Fiduciary Research & Consulting Co., Ltd. (“NFRC”)

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2 Periodic reconstitutions
2.1 Periodic reconstitution date
The periodic reconstitution date is the first business day of December every year, and reconstitution is carried out after
the close of trading on the business day preceding the periodic reconstitution date.

2.2 Periodic reconstitution base dateComponent stocks and the number of shares of each component stock to be included in the index following its periodic
reconstitutions are determined on the basis of data as of the periodic reconstitution base date, defined as the fifthbusiness day of November each year.

2.3 Announcement of periodic reconstitutions
As a general rule, an announcement will appear on our website at around 16:00 JST 10 business days before theperiodic reconstitution, except in cases of unforeseen circumstances or when information cannot be confirmed.
Website: http://qr.nomuraholdings.com/en/frcnri/index.html

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3 The Selection and Construction Method forIndex Constituent Stocks
3.1 Universe
3.1.1 Universe
The universe includes, out of all stocks listed on Japanese stock exchanges[1] as of end-March preceding the periodic
reconstitution base date, the top 98% of stocks in terms of cumulative free float–adjusted market cap as of the universe
fixing date. However, of the stocks that were newly listed in or after April preceding the periodic reconstitution basedate, those in approximately the top 85% in terms of cumulative free float–adjusted market cap, and newly merged
stocks, are also included in the universe, while stocks that meet the following criteria as of the periodic reconstitution
date are excluded from the universe.
• Equities other than common stock
As a general rule, only common stock is included in the 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
Stocks designated as securities under supervision are not included in the universe.
• Target companies of a tender offer
Stocks that are the targets of tender offers (i.e., TOBs) may be excluded from the universe of stock selection only if
all of the following requirements are met:
(1) the company conducting the tender offer plans to acquire all the outstanding shares in the target company; and(2) the company conducting the tender offer is planning to acquire all of the stock of the target company inexchange either for money or its own stock and the target company agrees to the offer.

1.

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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• Exchange Traded Funds/REITs• Foreign stocks
Stocks listed on foreign sections of Japanese exchanges or stocks regarded as overseas companies are excluded
from the universe even if they are traded in the Japanese market.
• Other exceptions
Latent stocks, warrants, and rights on them are excluded. The Bank of Japan is also excluded.
3.1.2 Universe fixing date
The universe fixing date is 15 October (or the preceding business day if 15 October is a non-business day) preceding
the periodic stock reconstitution base date.

3.2 Terminology• Free float-adjusted market cap
We use the following method to calculate free float-adjusted market capitalization in order to reflect the number ofshares that are actually available for investment.
Nomura composite price × (number of shares outstanding for index calculation purposes - stable shareholding)• Nomura composite price
The Nomura composite price refers to the stock price of the exchange selected based on the number of traded daysand volume of contracts in the last 60 trading days. As a general rule, the exchange is selected on a daily basis.
The share price is selected according to the following order of precedence:Contract price on selected exchange (see note) > standard price on selected exchange > Nomura composite priceon previous business day
Note: Priority is given to the special quotation price or continuous confirmed quotation price on the selectedexchange if these are available.
• Number of shares outstanding for index calculation purposes
The number of shares outstanding for index calculation purposes is the number of shares outstanding afterreflecting changes in the number of shares, in accordance with 5.4.2 Adjustments resulting from changes in capital
structure.
• Stable shareholdings
The stable shareholding is the number of shares deemed to be held stably. It is estimated based on major
shareholders data, a list of securities held in an annual securities report, and information published by an exchange
or company (such as a bulletin or prospectuses, etc.).

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3.3 Stock selection[2]Stocks are selected for the Nomura Japan Equity High Dividend 70 from the universe. A total of 70 stocks with a highcurrent-FY dividend yield[3] are selected after taking into account the stock screening criteria and banding, as set out
below[4] .

Stock screening criteria
These are rules aimed at limiting inclusion in the index of stocks for which there are doubts about dividend sustainability
and low-liquidity stocks such as those with a low free float–adjusted market cap. Stocks that meet the following criteriaon the periodic reconstitution base date are eligible for inclusion in the index.
• Actual recurring profits have been above zero for the past three years[5]• The current fiscal year is expected to end in March, June, September, or December• In the top 85% in terms of cumulative free float–adjusted market capitalization• In the top 500 in terms of average trading value over the past 60 days

Screening and Banding
Banding is the rule aiming to reduce frequent stock replacements caused by very small differences in current-FY
dividend yield forecasts. Among the stocks that meet the stock screening criteria, index's constituents are selected in
the following order.
1. The top 50 stocks in terms of current-FY dividend yield forecast on the periodic reconstitution base date are
selected unconditionally.
2. Stocks that rank from 51st to 90th in terms of current-FY dividend yield forecast (the rebalancing band) and are
already included in the index are then selected until a total of 70 stocks have been selected.
3. If the total number of stocks selected in 1 and 2 above is less than 70, the shortfall is supplied by stocks ranked
from 51st onward in terms of the current-FY dividend yield forecast that are not currently included in the index, inorder of ranking[6] .

3.4 Number of shares of the stock within the index
The component stocks are determined as the 70 stocks selected as described in Section 3.3. Index inclusion weights
for each component stock will be allocated an equal weight as of the periodic reconstitution base date.
The number of shares per component stock as of the periodic reconstitution date is calculated by dividing the market
capitalization of the index on that day by the number of component stocks (70), and then dividing that amount by the
Nomura composite share price for each stock on the periodic reconstitution base date. Please see Adjustments to index
weightings in Section 5.4 Index maintenance regarding adjustment of the number of shares included in the index foreach component stock between the reconstitution base date and the next scheduled reconstitution.

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The stock selection criteria may be revised in response to changes in the economic situation, etc. In this case, arevised rulebook will be published at least two weeks before the periodic reconfiguration date.
The current FY dividend yield forecast for each stock is calculated by dividing the estimated dividend per share (orthe lowest estimated dividend per share if the estimation is given by range) for the most farthest future accounting
period within 12 months after the month following the periodic reconstitution base date by the closing value of its
Nomura composite price on the periodic reconstitution base date.
When a zero dividend forecast is confirmed for a stock between the periodic reconstitution base date and theperiodic reconstitution announcement, the stock is not included in the index and replaced with the second choicecandidate.
Actual recurring profit for the past three years are calculated from full-year fiscal result up to the end of the monththat is five months prior to the periodic reconstitution base date. Accounting standards are adopted in the following
order of priority, the latest IFRS, the latest J GAAP (consolidated), the latest US GAAP and the latest J GAAP
(non-consolidated). In terms of recurring profits, Net income before taxes are referred in the case of IFRS, andEarnings before income taxes and others are used for US GAAP.
When two or more stocks have the same current -FY dividend yield forecast, the stock with the larger free
float–adjusted market cap is selected on a priority basis.

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4 Unscheduled reconstitutions
As a general rule each time an event such as corporate realignment occurs, the reconstitution shall be carried out
based on the following rules, taking into consideration the actual situation after the event. However, a material event
other than those below may lead to an unscheduled index reconstitution. Any such change would be announced inadvance.

4.1 Stocks for which the current FY dividend has fallen to zeroIn order to increase the index’s dividend yield, if it is confirmed that the current-FY dividend forecast of a component
stock is zero, as a general rule the stock will be removed from the index on the 11th business day after this confirmation[7] and a new stock will be added from the waiting list as defined below.
• If a stock issuer forecasts that its annual dividend for the current fiscal year or the final dividend for the full year
result until the index's next periodic reconstitution will be zero, the firm's stock will be determined as that its yearend dividend forecast falls to zero.
• If one or more stocks are to be removed from the index because their current FY dividend forecasts have fallen tozero, the same number of stocks are added to the index on the day of removal as the number of stocks that are to
be removed. Substitute stocks for this alternation are selected from the waiting list as defined below in order of
estimate current FY dividend yield[8] . The number of shares of the stock to be added is calculated by this formulabased on data for a business day before the date of confirmation of removal from the index.
Number of shares within the index for the stock to be removed × (Sum of Nomura composite price of stocks to be
removed / Number of stocks to be removed) / Nomura composite price of the stock to be added to index..
• Even if the current FY dividend forecast falls to zero, (1) there is no ex-dividend date of the stock's dividend in the
period from the 11th business days following the confirmation date to the next periodic reconstitution date, (2) the
11th business days following the confirmation date fall after October, and in any of these cases, the issue will not be
replaced at this time. It will be reviewed at the time of the next periodic reconstitution.
• Waiting list
Waiting list stocks are stocks in the universe (see Section 2.1) for which it is possible to estimate the free
float–adjusted market cap and that meet the stock screening criteria (see Section 2.2) on the fifth business day of
November, February, May, and August (waiting list base dates)[9] . Stocks are selected from the valid waiting list
following confirmation of the stocks that are to be removed. Stocks are removed from the waiting list if their currentFY dividend forecast falls to zero after the waiting list base date.
Fig. 2: Waiting list base date and corresponding date of confirmation of zero current-FY dividend forecast

Date of confirmation of zero current-FY dividend forecast Valid waiting list base date
20 November - 19 February

Fifth business day of November (Periodic reconstitution base date)

20 February - 19 May

Fifth business day of February

20 May - 19 August

Fifth business day of May

20 August - 19 November

Fifth business day of August

Source: NFRC

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This rule applies from 25 July 2014. Through 24 July 2014, if it is confirmed that the current-FY dividend forecastof a component stock is zero, as a general rule the stocks will be removed from the index on the 10th business
day after this confirmation. If the zero dividend forecast confirmation date is on or after 20 September, however,the stock will not be removed.
The current-FY dividend yield forecast is calculated by dividing the expected dividend per share (or the minimum
estimated dividend per share if the estimation is given by range) in the most farthest future accounting period
within 12 months from the month following the waiting list base date by the closing value of Nomura composite
price on the waiting list base date.
Stocks are selected using the waiting list base date instead of the periodic reconstitution base date, as set out in
Section 3.3.

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4.2 Newly listed stocks
Stocks newly listed in the period following the periodic reconstitution base date will be considered for inclusion in theindex at the time of the next periodic reconstitution[10] .

4.3 Treatment of stock swaps, stock transfers, mergers, etc.
Unscheduled reconstitutions are carried out in response to various forms of corporate reorganization, based on thefollowing rules. Changes are made on a case-by-case basis taking the situation following the restructuring into account.
The objective is to avoid temporary exclusions of companies that have conducted a stock swap, stock transfer or similaraction, and thus maintain the consistency of the stocks included in the index.
• Stock swaps and absorption-type mergers
When a stock is delisted because it is about to become a wholly owned subsidiary or be merged into anothercompany, it may be included in the index after its delisting but must be removed from the index on the day of thelisting change. Following its delisting, and until the business day prior to the listing change, the merged company's
valuation is based on the market value of the company that will become the parent company or the surviving
company multiplied by the exchange or merger ratio. Also, the number of shares of the stock within the index of thesurviving company is changed on the listing change date based on the exchange or merger ratio.

• Stock transfers and consolidation-type mergers
When an unlisted surviving company takes over the operations of another company and becomes listed after ashort period of time, the merged company is removed from the index on the new listing date of the surviving
company. The price used for the delisted merged company through to the business day prior to the surviving
company's listing is the price on the day before its delisting. The price used for the surviving company is the priceon its new listing date. However, if it is apparent the surviving company will not be eligible for the index periodic
reconstitution, the merged company is removed from the index on the delisting date.

• If the surviving company has a current-FY expected dividend of zeroIn the case of a stock swap, merger, or stock transfer, etc., as set out above, if it is confirmed by 11 business days
before the delisting date that the surviving company (the parent company or the surviving company after themerger) has a current-FY expected dividend of zero, the wholly owned subsidiary or merged company will be
excluded from the index, the surviving company will not be included in the index, and a new stock will be added,
based on the waiting list as set out in 4.1 Unscheduled replacement of stocks for which the current-FY dividend has
fallen to zero between scheduled reconfigurations, on the date on which the wholly owned subsidiary or merged
company is delisted.

4.4 Removal of stocks• Assignment to securities to be delisted
Stocks assigned as securities to be delisted will be removed from the index four business days after theassignment. However, stocks that are listed on more than one stock exchange and not assigned to be delisted on
all stock exchanges will not be removed.
10.

Excludes newly listed stocks as a result of stock transfers or consolidation-type mergers. See 4.3 for the treatmentof such stocks.

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• Delisting
Stocks delisted for reasons other than those cited in 4.3 Treatment of stock swaps, stock transfers, mergers, etc.,
are removed from the index on the delisting date.
• Marked loss of eligibility for inclusion in the universe
In the case of an event that is considered to seriously damage a component stock's eligibility for inclusion in theuniverse, the stock may be removed from the index following an official announcement by the company in question,
the stock exchange, or a government/regulatory agency.
As a general rule, if a stock has been removed from the index for a reason other than a zero current-FY dividend
forecast, a stock will not be added to replace it.

4.5 Announcement of unscheduled reconstitutions
As a rule, unscheduled reconstitutions are announced on the NFRC website no later than five business days before thedate of reconstitution, except in the case of unforeseen circumstances or when information cannot be confirmed.
Website: http://qr.nomuraholdings.com/en/frcnri/index.html

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5 Index calculation
5.1 Index base date, Index base values, Publication start dateIndex base date

： 29 December 2000

Index base values： 10,000

Publication start date

： 17 December 2012

Index values before the publication start date were calculated based on the rules as of the publication start date
for reference purposes.

5.2 Index market cap
5.2.1 Index market capitalization
Stock market cap for the indexi= Nomura composite pricei × number of shares of the stock within the indexi
Index market cap = Σi (stocki ’s market cap of the index)

i indicates each index constituent. Σi indicates the sum for all index constituents.

5.2.2 Base market capitalization
Base market capitalization is used in index calculations to avoid index values being affected by changes in market
capitalization that are caused by non-market factors, such as changes in capital structure or in the constituents of theindex.
• Base market capitalization (excluding dividends)
Base market capitalizationt (excluding dividends) = index market capitalizationt -1 + adjusted market capt

t is the day in question. t -1 is the preceding business day.
• Base market capitalization (including dividends)
Base market capitalizationt (including dividends)= index market capitalizationt -1 + adjusted market capitalizationt - adjusted total dividendt

t is the day in question. t -1 is the preceding business day.
Adjusted market capitalization refers to the movement of market capitalization due to the change in the capital structureor the change in constituents. Regarding the method of adjusting the base market capitalization, please see Section
5.4.2 Adjustments resulting from changes in capital structure. Adjusted total dividends is calculated as the difference
between forecast dividends and actual dividends. Regarding the method of adjusting total dividends please see Method
for reflecting dividends on the next page.

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5.3 Calculation of index values
The index value and return are calculated using the values described above as follows;
5.3.1 JPY–denominated index value• Index excluding dividends
Returnt (excluding dividends) = index market capitalizationt / base market capitalizationt -1
Index valuet (excluding dividends) = index valuet -1 (excluding dividends) × (1 + returnt (excluding dividends))

t is the day in question. t -1 is the preceding business day.
• Index including dividends
Returnt (including dividends) = (index market capitalizationt + total dividendst ) / base market capitalizationt – 1
Index valuet (including dividends) = index valuet -1 (including dividends) × (1 + returnt (including dividends))

t is the day in question. t -1 is the preceding business day.

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• Method for reflecting dividends
For the index including dividends, dividend data are reflected on the ex-dividend date. However, as the value of thedividend has not yet been determined on the ex-dividend date, the stock issuer’s dividend forecast is used (if this isunavailable, the Toyo Keizai dividend forecast is used)[11] . Furthermore, in the following circumstances, base market
capitalization (including dividends) is adjusted for adjusted total dividends on the stipulated business day.
In the event of a difference between the dividend forecast and the actual dividend:
Base market capitalization is adjusted on the last business day of the month of the earnings announcement (orthe last business day of the following month if the earnings announcement is made on the last business day of themonth)
When a dividend adjustment is necessary:
Base market capitalization is adjusted on the last business day of the month in which NFRC comes to know (orthe last business day of the following month if the day in which NFRC comes to know is the last business day ofthe month)
5.3.2 Calculation of US dollar–denominated index values
The US dollar–denominated index is calculated from the yen-denominated index and the exchange rate using theformula below. The index including dividends and the index excluding dividends are calculated respectively. The
exchange rate used is the mid-rate announced by the BOJ (at 17:00).
US dollar–denominated index value= yen-denominated index value × (exchange rate on index base date / exchange rate)
5.3.3 Calculation of US dollar hedged index values
The US dollar hedged index indicates performance for investing in the underlying index on a US dollar basis while
hedging currency. The currency hedge for the investment at the end of each month is performed using rolling onemonth USD/JPY forward contracts. The US dollar hedged index is hedged against currency risk for all index
constituents at the end of each month (100% hedging ratio), but this does not mean that currency risk is completely
hedged.
The USD/JPY rates used to calculate values for the US dollar hedged index are the closing values of the WM/Refinitiv
spot rate and one-month forward rate (the exchange rate of the Japanese yen against the US dollar, mid-rate at 16:00
London time). When these rates are not available, the equivalent rates on the previous day are used.
The yen-denominated underlying index of the US dollar hedged index is the Net Total Return Index of the Nomura
Japan Equity High Dividend 70. The tax rates applied in Japan to nonresidents are used in the calculation of net total
return[12] .
The official name of the US dollar hedged index is the Nomura Japan Equity High Dividend 70, Net Total Return US
Dollar Hedged Index.

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This rule is effective from fiscal years ended end-December 2011 onward. For fiscal years before this, the actual
dividend is used on the ex-rights date.
For total dividends after tax, we use the tax rate as-of previous business day of the ex-dividend date. Reviews are
conducted quarterly.

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• Yen-denominated underlying index
Base market capitalization after taxt
= market capitalizationt-1 + market capitalization adjustmentt – tax-adjusted total dividend adjustmentt
Returnt = (market capitalizationt + tax-adjusted total dividendst ) / tax-adjusted base market capitalizationt - 1
Index valuet = index valuet-1 + (1 + returnt )t is the day in question. t -1 is the preceding business day.

• US dollar hedged index
US dollar hedged index md = US dollar hedged index m 0 × (1 ＋ index return before hedging md ＋ hedged return md )Index return before hedging md= (yen-denominated underlying index md / yen-denominated underlying index m 0) × (spot rate m 0 / spot rate md ) - 1
Hedged return md = (spot ratem 0 / forward ratem 0) - (spot rate m 0 / linearly interpolated forward rate md )Linearly interpolated forward rate md = spot rate md + (D’ －d ) / D × (forward rate md – spot rate md ）Here "m " denotes month; other related notations are shown below with their meanings.

m0: the last business day of the previous monthmd: the day in questiond: day of the monthD: the number of days in the monthD’: the number of calendar days until the last business day of the month

5.4 Index maintenance5.4.1 Reconstitutions
Constituents are replaced in periodic and unscheduled reconstitutions and also when necessary for other reasons. Thebase market capitalization is calculated on the reconstitution date using share prices from day prior to the reconstitution
date.

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5.4.2 Adjustments resulting from changes in capital structure
Adjusting the base market capitalization
The base market capitalization is adjusted in the following way if market cap moved due to a change of capital structure
regardless of market movement. However, no adjustment is made to base market capitalization to reflect changes incapital structure that do not involve payment, such as stock splits, reverse stock splits, and changes in face value, as
these do not affect market capitalization.
Fig. 3: Timing of adjustments resulting from changes in capital structure

Change in capital structure
Adjustment date
Share price used
Stock transfer, stock swap, merger Date of listing change
Previous day's priceCorporate
Corporate divestiture
reorganization
Not used[13]Ex-rights date(company/division spinoff)
Shareholder allocation
Ex-rights dateIssue priceAllotment of acquisition rights to
Ex-rights date
Exercise priceshares without contribution
Allotment of treasury stock without
Ex-rights datePrevious day's pricecontribution
Business day following payment datePublic offering(listing date of new shares when settlement Previous day's priceis on issuance date)
CapitalFive business days after date of listing
Third-party allocation of shares
Previous day's priceincreasechangeLast business day of month in which
Conversion of preferred stocknumber of converted shares becomes
Previous day's priceknown
Conversion of CBs
Last business day of month in which
number of new shares for which rights
Previous day's price
Exercise of stock acquisition rights
were exercised becomes known
Corporate divestiture (new shares
Date of listing change
Previous day's priceof successor company)
Last business day of month following
Retirement of treasury stock
Previous day's pricemonth of treasury stock retirement
Last business day of month in which rights
offering refusal is announced (or lastCapitalForfeiture of stock acquisitionbusiness day of following month if
Previous day's pricereductionrightsannouncement is within five business daysof month-end)
Capital reduction with
Effective datePrevious day's pricecompensation
Other adjustments to base market
capitalization, if required, are made on thelast business day of the month of the
Other
Other adjustments
disclosure of the relevant information (orPrevious day's pricethe last business day of the following
month if the disclosure is made within fivebusiness days of the month-end)
Source: NFRC

13.

In the case of a corporate divestiture (company/division spinoff), the base market capitalization is adjusted for the
reduction in capital. The reduction in capital is defined as follows:(1) when the divesting entity does not announce the value of the divested division or of the shares of the divested(spun-off) company, capital is reduced by the amount by which the divesting entity’s shareholders' equity is
expected to be reduced and(2) when the divesting entity does announce the value of the divested division or of the shares of the divested(spun-off) company, capital is reduced by the value of the division or the value of the divested company's shares
multiplied by the total number of shares

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Adjustments to index weightings
When the following changes in capital structure result in a change in the number of shares outstanding for index
calculation purposes, the number of shares of the stock within the index is adjusted so that the number of shares in thestock that are included in the index does not change.

• Stock transfer, stock swap, merger[14]• Shareholder allocation• Allotment of acquisition rights to shares without contribution• Public offering• Third-party allocation of shares• Conversion of preferred stock• Conversion of CBs, exercise of stock acquisition rights• Corporate divestiture (new shares of successor company)• Retirement of treasury stock• Forfeiture of stock acquisition rights• Capital reduction with compensation• Other adjustments

14.

When an index constituent becomes a wholly owned subsidiary (or merged company), the index inclusion ratio of
the parent (or surviving company) is changed so that the total number of shares in the index remains the same as
it was before, taking the exchange ratio (or merger ratio) into account.

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6 Information vendor codes and websites
Data for the indices can be obtained via the following channels[15]Index values are published in the following media:
Bloomberg：

JPY-denominated (excluding dividends): NMRIJOHD <Index>
JPY-denominated (including dividends): NMRIJIHD <Index>

QUICK

：

JPY-denominated (excluding dividends): SNJPHD/NRIJ
JPY-denominated (including dividends): SNJPHD#TR/NRIJ

LSEG

：

JPY-denominated (excluding dividends): .NHDIV70
JPY-denominated (including dividends): .NHDIV70TR
USD-hedged (Net Total Return): .NHDIV70UNH

Website15.

：

http://qr.nomuraholdings.com/en/nhdiv/index.html

Published data are all for reference only.

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For further information on the index
Nomura Fiduciary Research & Consulting Co., Ltd.[16]Index Services Department

16.

e-mail：idx_mgr@nfrc.co.jp

Website：http://qr.nomuraholdings.com/en/frcnri/index_contacts.html

NFRC took over the index business of Nomura Securities Co., Ltd., effective 1 February 2023.

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Disclaimer
The intellectual property rights and any other rights in Nomura Agribusiness Index belong to Nomura Fiduciary
Research & Consulting Co., Ltd. ("NFRC").
NFRC do not guarantee accuracy, completeness, reliability, usefulness, marketability, merchantability and fitness of theIndex, and do not account for business activities or services that any index user and/or its affiliates undertakes with theuse of the Index.
Publication of the index could be delayed or canceled if a computer malfunction, natural disaster, or other unavoidable
event affects the index calculation process.
Should contingencies arise that were unforeseen at the time of the creation of this rulebook, NFRC may prioritize items
not spelled out in this rulebook in its management of the index. In such cases, NFRC will issue an announcement inadvance that details those items.
Please read “About The Index License” before using the indexes, regardless of the channel through which indexes/data
is acquired (NFRC website, services via information vendors, etc).
"About The Index License" http://qr.nomuraholdings.com/en/indexlicense.html
The WMR FX Benchmarks (WMR Spot Rates) are provided by London Stock Exchange Group (LSEG). LSEG shall not
be liable for any errors in or delays in providing or making available the data contained within this service or for any
actions taken in reliance on the same.
■ This material has been prepared by Nomura Fiduciary Research & Consulting Co., Ltd. (NFRC) for information
purposes only.
■ All opinions and/or predictions contained in this material are based on the determination of NFRC at the time thismaterial was prepared and are subject to change without notice. We do not provide any guarantee or assurance
that opinions contained in this material relating to future predictions will actually take place. Some part of thecontent of this material is based on various information available to NFRC which NFRC determined to be reliable.
However, NFRC does not guarantee the accuracy of such information, and there is a possibility that suchinformation was summarized and imperfect. The past investment performance is not indicative of the future results.
■ This material is not intended as an investment solicitation or an investment advice in connection with any particular
security transaction.
■ If a customer invests in an investment product that uses a market benchmark developed and provided by NFRC, aportion of the fees for the use of such benchmark may be directly or indirectly attributed to NFRC. For details,
please visit the following website. Securities Market Benchmarks http://qr.nomuraholdings.com/en/■ This material may only be used by the customer to whom it was distributed. This material is the copyrighted work of
NFRC and you may not copy, transmit or redistribute this material, in whole or in part, without the prior writtenconsent of NFRC.

Nomura Fiduciary Research & Consulting Co., Ltd.
Registration Number: Director-General of the Kanto Local Financial Bureau (Finance & Commerce) Registration No.451
Membership: Japan Investment Advisers Association No. 011-00961

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Policies with regard to NFRC’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• Complaints Handling Policy

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