Nomura AI Companies 70

Global Markets Research
17 June 2022

EQUITY: EQUITY QUANTITATIVE RESEARCH (INDEX)

Index rulebook

Research Analysts
Japan index products
Index Operations Dept. - NSC
idx_mgr@jp.nomura.com

Nomura AI Companies 70
The Nomura AI Companies 70 is an equally weighted index made up of 70 stocks ofcompanies covered by the media in connection with business related to artificial
intelligence.
Stocks for inclusion in the index are selected from all common stocks listed on exchanges
in Japan with quantitative valuation indicators based on the results of searches forarticles/reports from TV news, magazines, newspapers, and other media. "Artificial
intelligence" and several related keywords selected with the use of AI are employed in the
search for articles.
Index characteristics• 70 stocks are selected with quantitative valuation indicators based on results ofsearches for articles reported via TV news, magazines, newspapers, or other media.
• By making it an equally weighted index, a flat rate of investment is made in not only
large cap but also small cap artificial intelligence-related stocks.
• Stocks with excessively small market caps and low liquidity are excluded fromconsideration in view of investability.
• Constituent stocks and AI-related keywords used to search for articles are eachreconstituted once a year.

Primary change: Added further details to Section 5. Data publication services

Production Complete: 2022-06-17 07:12 UTC

See Appendix A-1 for analyst certification, important disclosures and the status of non-US analysts.

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Table of contents
1. Periodic reconfigurations
1.1. Periodic reconfiguration date
1.2. Periodic reconfiguration base date
1.3. Announcement of periodic reconfigurations
2. Stock selection and index construction method
2.1. Stock selection universe
2.2. Score calculation universe
2.3. Stock selection method
2.4. Weighting of constituent stocks and number of shares per stock
2.5. Search criteria
2.6. Reviewing and announcing related keywords
3. Unscheduled reconfigurations
3.1. Response to stock swaps, stock transfers, mergers, etc[7]3.2. Removal of stocks
4. Index calculation
4.1. Index base date, base value, announcement date
4.2. Calculation of index values
4.3. Adjustment of base market capitalization
4.4. Index maintenance
5. Data publication services
Policies with regard to Nomura Securities Co., Ltd. (NSC)’s indices
Appendix A-1

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1. Periodic reconfigurations
1.1. Periodic reconfiguration date
Periodic reconfigurations take place once a year, on the first business day of December,and reconfiguration is carried out after the close of trading on the business day preceding
the periodic reconfiguration date.

1.2. Periodic reconfiguration base date
The reconfiguration base date is the 15th of the month, two months before the periodic
reconfiguration date[1] (or the preceding business day if the 15th is a non-business day).
Constituent stocks and the number of shares in each constituent stock to be included in
the index following its periodic reconfiguration are determined on the basis of calculations
using data as of the reconfiguration base date.

1.3. Announcement of periodic reconfigurations
As a general rule, an announcement will appear on our website 10 business days before
a periodic reconfiguration around 16:00 (JST), except in cases of unforeseen
circumstances or when information cannot be confirmed.

1.

This rule was adopted starting with December 2009 periodic reconfigurations. Periodic reconfigurations for
December 2008 and before were performed using data from the last day of the month preceding the periodic
reconfiguration date (or the preceding business day if the last day of the month was a non-business day).

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2. Stock selection and index construction
method
2.1. Stock selection universe
The universe of stocks eligible for inclusion in the index includes, out of all stocks listed onJapanese stock exchanges[2] as of the end of March in the year before the periodic
reconfiguration base date, the top 98% of stocks in terms of free float–adjusted market
cap as of the periodic reconfiguration base date. Of the stocks that were listed in or after
April and before the end of September in the year before the periodic reconfiguration basedate, those in approximately the top 85% in terms of free float–adjusted market cap andnewly merged stocks are also included in the stock selection universe.
The index excludes stocks that meet the following criteria as of the periodic
reconfiguration base date.
• Equities other than common stock
As a general rule, only common stock is included in the stock selection 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 (examination) and stocks under supervision(confirmation)
Stocks under supervision (examination) and stocks under supervision (confirmation) thatare not part of the index composition immediately prior to regularly scheduledreconfigurations are not included in the universe.
• TOB target companies[3]Stocks that are the targets of tender offers (ie, TOBs) may be excluded from the universeof 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 inthe target company; and(2) The company conducting the tender offer is planning to acquire all of the stock of thetarget company in exchange either for money or its own stock and the target company
agrees to the offer.
• Listed investment trusts/REITs• Foreign stocks
Stocks listed on foreign sections of Japanese exchanges or stocks regarded as overseas
companies are excluded, even if these stocks are traded in the Japanese market.
• Others
Latent stock, warrants, and rights on them are excluded. The Bank of Japan is also
excluded.

2.
3.

Tokyo Stock Exchange (Prime Market, Standard Market, Growth Market, TOKYO PRO Market), Nagoya
Stock Exchange, Sapporo Securities Exchange, and Fukuoka Stock Exchange.
This rule applies from the December 2016 periodic reconstitution.

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2.2. Score calculation universe
Using data as of the periodic index reconfiguration base date, stocks within the stock
selection universe that meet the following criteria are eligible for inclusion in the score
calculation universe.
• From the stock selection universe, we select the top 90% of stocks in terms of
average market turnover over the past 60 days.

2.3. Stock selection method
AI ranking score
1. Searches for AI-related articles and reports are conducted for stocks in the score
calculation universe. Searches target articles including both the stock's ticker codeand "artificial intelligence," using the search parameter below.
Parameter for AI article searches: [stock ticker code] AND "artificial intelligence"
2. We determine the AI article score for the most recent year for stocks in the score
calculation universe based on the number of AI articles in the search results over the
past year up to the day before the periodic reconfiguration base date. We thendetermine the AI article score for one year earlier based on the number of AI articles
in the search results over the year from the periodic reconfiguration base date twoyears earlier through the day before the periodic reconfiguration base date one year
earlier[4] .
3. We determine the AI ranking score by ranking the stocks in the score calculation
universe (in ascending order) based on a weighted score calculated as (AI article
score for the most recent year x 2) + (AI score for one year earlier).
• Related keyword ranking score1. We conduct searches for articles and reports containing related keywords for stocks
in the score calculation universe. Searches target articles that include both the stock's
ticker code and a related keyword, but that do not include "artificial intelligence," using
the search parameter below. We search for articles containing any of the keywords inthe list of related keywords (combining all the keywords in the set using OR).
Parameter for related keyword searches:[stock ticker code] AND [any keyword on the list of related keywords] NOT"artificial intelligence"
2. We determine the related keyword article score for the most recent year for stocks inthe score calculation universe based on the number of articles containing related
keywords in the search results over the past year up to the day before the periodic
reconfiguration base date. We then determine the related keyword article score forone year earlier based on the number of articles including related keywords in the
search results over the year from the periodic reconfiguration base date two years
earlier through the day before the periodic reconfiguration base date one year earlier[5] .
3. We determine the related keyword ranking score by ranking the stocks in the score
calculation universe (in ascending order) based on a weighted score calculated as(related keyword article score for the most recent year x 2) + (related keyword article
score for one year earlier).

4.

5.

Prior to the December 2016 periodic reconfiguration, we determined the AI article score for the most recent
year based on the search results over the year beginning the day after the previous year's periodic
reconfiguration base date through that year's periodic reconfiguration date and determined the score for one
year earlier based on the search results over the year from the day after the periodic reconfiguration basedate two years earlier through the periodic reconfiguration base date one year earlier.
See Footnote 3.

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Stock selection
1. We select the top 10 stocks based on AI ranking score. If there are multiple stocks
with scores putting them in the top 10, we select up to 70 stocks at those scores inorder of average market turnover over the past 60 days.
2. If the number of stocks selected by method (1) does not reach 70, we select theremainder from stocks not already selected, in order of the average score for AI
ranking and relevant keyword ranking, to bring the total number of selected stocks to
70. If there are multiple stocks with average ranking scores putting them in the top 70,
we select the top stocks based on AI ranking score. If the above criteria still yield
multiple stocks with AI ranking scores putting them in the top 70, we select the top 70
stocks in order of average market turnover over the past 60 days. Average ranking
scores are determined using the following formula.
Average ranking score =(AI ranking score + relevant keyword ranking score) ÷ 2

Fig. 1: Composition of the Nomura AI Companies 70

Stock selection universe
Of all stocks listed on Japanese stock exchanges,
top 98% of stocks in terms of free float–adjusted market cap

Score calculation universe
Of stocks within the stock selection universe,
top 90% of stocks in terms of average market
turnover over the past 60 days

Top 10 stocks by AI ranking score＋
top stocks by average of AI ranking andrelevant keyword ranking scores
until a total of 70 constituent stocks are selected

Indexed at equal weighting

Note: See the main text of this report for details on exception handling and index construction methods.
Source: Nomura

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2.4. Weighting of constituent stocks and number of shares perstock
On the date for periodically reconfiguring the index as set out in 1.2, the 70 constituent
stocks selected according to 2.3 are weighted equally. The number of shares per stock onthat day is calculated by dividing the market capitalization of the index on that day by the
number of constituent stocks (ie, 70) and then dividing that amount by the Nomura
composite share price at the close of trading. Adjustments to the number of shares perstock are made in accordance with 4.4 Index maintenance until the next periodic
reconfiguration date.
• Nomura composite share price
The Nomura composite share price is the name given to the share price on the stock
exchange selected for each stock on the basis of trading frequency and volume over thepreceding 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 share price on previous business day
Note: Priority is given to the special quotation price or continuous confirmed quotation
price on the selected exchange if these are available.

2.5. Search criteria
Articles are searched using Nikkei Telecom according to the following criteria:
1. Search mode (include all words)
2. Match mode (exact match)
3. Search range (headlines, text, keywords, categories)
4. Synonymous expansion, no thesaurus expansion
5. Exclude obituaries and articles on personnel matters (Nikkei publications), articles
consisting solely of numerical tables (Nikkei publications), and articles from the sports
section (Nikkei publications)6. The category "newsflash" is excluded from the articles to be searched.

2.6. Reviewing and announcing related keywords
Related keywords may be reviewed annually on 15 June (or the preceding business day if
the 15th is a non-business day). As a rule, the results will be announced on Nomura's
home page on 15 August (or the preceding day if the 15th is a non-business day).
However, this will not apply in the event of unforeseen circumstances or when information
cannot be confirmed.
Related keywords for possible addition or revision are selected[6] once a year.
Keywords are selected for their relevance to AI on the basis of (1) material on AI
published by government departments and research organizations during the preceding
five years from 1 April five years ago to 31 March of the current year and (2) internal
criteria.
The following examples are related keywords selected in 2016 (Figure 2).
Fig. 2: Related keywords selected in 2016
Deep learning, machine learning, big data, IoT, robotics, data mining,sensing, cyber security, robot, autonomous driving
Note: Allowance is made for minor variations in how the Japanese equivalents of some of the above terms written in
katakana are spelled.
Source: Nomura

6.

Specific selection criteria are not disclosed for IP protection purposes.

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3. Unscheduled reconfigurations
3.1. Response to stock swaps, stock transfers, mergers, etc[7]Temporary exclusions of stocks from the index are avoided and the consistency of index
constituents is maintained based on the following rules.
3.1.1. Stock swaps and absorption-type mergers
When a stock is delisted because it is about to become a wholly owned subsidiary or bemerged into another company (hereinafter, merged company), it is included in the index
after delisting but removed from the index on the listing change date (or on the following
business day if this is a non-business day). Following its delisting, and until its removalfrom the index, the merged company's valuation is based on the market value of thecompany that will become the parent company or the surviving company multiplied by theexchange or merger ratio. Also, the index inclusion ratio of the parent company orsurviving company is changed on the listing change date (or on the following business
day if this is a non-business day) based on the exchange or merger ratio.
3.1.2. Stock transfers and consolidation mergers
When an unlisted parent company or surviving company in a merger (hereinafter,
surviving company) assumes the operations of another company and becomes listed after
a short period of time, the merged company is removed from the index on the new listingdate of the surviving company (or on the following business day if this is a non-businessday). The price used for the delisted merged company is the price on the day before itsdelisting. Also, the price used for the surviving company is the price on its new listingdate. However, if the surviving company will not be included in the index after periodic
reconfiguration, the merged company is removed from the index on the delisting date.

3.2. Removal of stocks
3.2.1. Designation as securities to be delisted
Stocks designated as securities to be delisted are removed from the index four businessdays later (or on the following business day if this is a non-business day). However,stocks that are listed on more than one market and not designated for delisting on one ormore of the markets will not be removed.
3.2.2. Delisting
Stocks delisted for reasons other than those cited in 3.1 Response to stock swaps, stocktransfers, mergers, etc are removed from the index on the delisting date.
3.2.3. Marked loss of eligibility for inclusion in stock selection universe
In the case of an event that is considered to put the constituent stock in violation of thecriteria defined in 2.1 Stock selection universe, the stock may be removed from the index
following an official announcement by the company in question, the stock exchange, or agovernment/regulatory agency. However, if the grounds for the stock's removal from theindex no longer apply at a later date, it will stop being regarded as ineligible for inclusionin the stock selection universe at the time of the next periodic reconfiguration.

7.

This rule applies from April 2002.

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4. Index calculation
4.1. Index base date, base value, announcement date
The base date for the Nomura AI companies 70 is 30 November 2001 and the value ofthe index on the base date (base value) is 10,000. Publication of index values starts on 18
January 2017.

4.2. Calculation of index values
To prevent index values from being affected by changes in market capitalization notrelated to market fluctuations, eg, changes in capital structure and index constituents, theindex is calculated as follows[8] using base market capitalization. Subscript t indicates thecurrent day and t-1 indicates the preceding business day.
Calculation of yen-denominated index values• Index excluding dividends• Index including dividends• Method for reflecting dividends
For the index including dividends, dividend data is reflected on the ex-dividend date.
However, as the value of the dividend has not yet been determined on the ex-dividend
date, the company's dividend forecast is used (if this is not available, the Toyo Keizai
dividend forecast is used)[9] .In the event of a difference between the dividend forecast
and the actual dividend, the base market capitalization is adjusted on the last business
day of the month of the company's earnings announcement (if the company announces
its earnings on the last business day of the month, the adjustment is made on the lastbusiness day of the following month). Also, if a dividend adjustment is required, the basemarket capitalization is adjusted on the last business day of the month when thisbecomes known (if this becomes known on the last business day of the month, theadjustment is made on the last business day of the following month).

8.

9.

Adjusted market capitalization in 4.2 is calculated to reflect changes in market capitalization resulting fromchanges in the capital structure of index constituents or changes in market capitalization resulting fromchanges in the index constituents. Also, adjusted total dividends are calculated to reflect any differences
between forecast and actual dividends that may occur.
This rule applies starting from accounting periods ending end-December 2011. Actual dividends on ex-rights
dates are used prior to this time.

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• Indices based on dividends after tax
As dividends are subject to taxation, index values based on total dividends adjusted fortax are calculated using the following formula. Index values are calculated based on tax
rates for Japanese residents[10] .

Calculation of US dollar-denominated index values
US dollar-denominated index values are calculated using yen-denominated index values
and the forex rate on the index base date, using the following formula. Index values
excluding dividends and index values including dividends are calculated separately. The
exchange rate used is the USD/JPY middle rate published by the BOJ (at 17:00).

10.

The tax rate for Japanese residents is 15.315% as of January 2017. Tax-adjusted total dividends arecalculated by applying the tax rate on the business day before the ex-dividend date. The tax rate is revised
on a quarterly basis (in January, April, July, and October).

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4.3. Adjustment of base market capitalization
Base market capitalization is adjusted as follows if there are any changes in capital
structure or index constituents (Figure 3). However, base market capitalization is not
adjusted to reflect changes in capital 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
Stockreplacement

Capitalincrease

Adjustment date

Share price used

Stock transfer, stock swap, merger Date of listing change

Previous day's priceCorporate divestiture(company/division spinoff)

Ex-rights date

Not used[11]Stock replacement

Replacement datePrevious day's price

Rights offering

Ex-rights dateIssue price

Gratis allocation of stock acquisition
Ex-rights daterightsExercise price

Gratis allocation of treasury stock

Ex-rights datePrevious day's price

Public offering

Business day following payment date (listing date of
new shares when settlement is on issuance date)Previous day's price

Capital increase via third-party
placement

Five business days after date of listing change

Previous day's price

Conversion of preferred stock

Last business day of month in which number ofconverted shares becomes known

Previous day's price

Conversion of CBs

Capitalreduction

Other

Last business day of month in which number of newshares for which rights were exercised becomes
Exercise of stock acquisition rights known

Previous day's priceCorporate divestiture (new stock in
Date of listing change
continuing company)

Previous day's price

Retirement of treasury stock

Last business day of month following month oftreasury stock retirement

Previous day's price

Rights offering refusal

Last business day of month in which rights offering
refusal is announced (or last business day offollowing month if announcement is within fivebusiness days of month-end)

Previous day's price

Capital reduction withcompensation

Effective datePrevious day's price

Other adjustments

Other adjustments to base market capitalization, if
required, are made on the last business day of themonth of the disclosure of the relevant information (orPrevious day's pricethe last business day of the following month if thedisclosure is made within five business days of themonth-end)

Source: Nomura

11.

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, capitalis 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 thedivested (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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4.4. Index maintenanceConstituent stocks are replaced in periodic and unscheduled reconfigurations and whennecessary for other reasons. In addition, when the following changes in capital structure
result in a change in the number of shares outstanding for index calculation purposes, theindex inclusion ratio is changed so that the number of shares in the stock that areincluded in the index does not change.
•
•
•
•
•
•
•
•
•
•
•
•

12.

Stock transfer, stock swap, merger[12]Rights offering
Gratis allocation of stock acquisition rights
Public offering
Private placement
Conversion of preferred stock
Conversion of convertible bonds, exercise of stock acquisition rights
Corporate divestiture (new stock in surviving company)
Retirement of shares
Rights offering refusal
Capital reduction with compensation
Other adjustments

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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5. Data publication services
Data for the Nomura AI Companies 70 index can be obtained via the following channels[13] .

Index values will be published in the following media:
Bloomberg:

NMRCJOAI <Index> (yen-denominated index excluding dividends)
NMRCJIAI <Index> (yen-denominated index including dividends)
NMRCNRAI <Index> (yen-denominated index adjusted for tax on dividends (Net Total Return))

QUICK:NRIJ@

REUTERS:.NAI70 (yen-denominated index excluding dividends).NAI70TR (yen-denominated index including dividends).NAI70NR (yen-denominated index adjusted for tax on dividends (Net Total Return))

Our website

http://qr.nomura.co.jp/jp/nmai/index.html (Japanese only)More detailed information

Global Research Division, Financial Engineering & Technology Research CenterIndex Operations Dept.
e-mail: idx_mgr@jp.nomura.com

The Nomura AI Companies 70 is released by Nomura Securities Co., Ltd. ("Nomura") and
its intellectual and all other rights belong to Nomura. Nomura does not guarantee theaccuracy, completeness, reliability, usefulness, marketability, merchantability or fitness of
the index, and takes no responsibility for business activities or services by index users
and/or their affiliates involving the use of the index.
A license agreement with Nomura is required to use the index and access detailed data.
In the case of an unavoidable event such as computer breakdown or natural disaster,
calculation of the indices may be delayed or suspended.
While every effort is made to ensure that the information used in this report and all
published information is based on reliable data, it should be noted that data may bechanged or amended when necessary.
Nikkei Telecom-related disclaimer
The index is not related to Nikkei Inc. and is not endorsed or guaranteed by Nikkei Inc.

13.

Published data are all for reference only.

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Policies with regard to Nomura Securities
Co., Ltd. (NSC)’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• Glossary (Equity)• Complaints Handling Policy

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Appendix A-1
Analyst Certification
I, Index Operations Dept., hereby certify (1) that the views expressed in this Research report accurately reflect my personalviews about any or all of the subject securities or issuers referred to in this Research report, (2) no part of my compensation
was, is or will be directly or indirectly related to the specific recommendations or views expressed in this Research report and (3)no part of my compensation is tied to any specific investment banking transactions performed by Nomura Securities
International, Inc., Nomura International plc or any other Nomura Group company.

Important Disclosures
The lists of issuers that are affiliates or subsidiaries of Nomura Holdings Inc., the parent company of Nomura Securities Co., Ltd., issuers thathave officers who concurrently serve as officers of Nomura Securities Co., Ltd., issuers in which the Nomura Group holds 1% or more of any
class of common equity securities and issuers for which Nomura Securities Co., Ltd. has lead managed a public offering of equity or equity
linked securities in the past 12 months are available at https://www.nomuraholdings.com/report/ . Please contact the Research Production
Operation Dept. of Nomura Securities Co., Ltd. for additional information.

Online availability of research and conflict-of-interest disclosures
Nomura Group research is available on www.nomuranow.com/research, Bloomberg, Capital IQ, Factset, Reuters and ThomsonOne.
Important disclosures may be read at http://go.nomuranow.com/research/globalresearchportal/pages/disclosures/disclosures.aspx or requested
from Nomura Securities International, Inc. If you have any difficulties with the website, please email grpsupport@nomura.com for help.
The analysts responsible for preparing this report have received compensation based upon various factors including the firm's total revenues, aportion of which is generated by Investment Banking activities. Unless otherwise noted, the non-US analysts listed at the front of this report are
not registered/qualified as research analysts under FINRA rules, may not be associated persons of NSI, and may not be subject to FINRA Rule
2241 restrictions on communications with covered companies, public appearances, and trading securities held by a research analyst account.
Nomura Global Financial Products Inc. (NGFP) Nomura Derivative Products Inc. (NDP) and Nomura International plc. (NIplc) are registered with
the Commodities Futures Trading Commission and the National Futures Association (NFA) as swap dealers. NGFP, NDPI, and NIplc are
generally engaged in the trading of swaps and other derivative products, any of which may be the subject of this report.

Distribution of ratings (Nomura Group)
The distribution of all ratings published by Nomura Group Global Equity Research is as follows:
56% have been assigned a Buy rating which, for purposes of mandatory disclosures, are classified as a Buy rating; 38% of companies with thisrating are investment banking clients of the Nomura Group*. 0% of companies (which are admitted to trading on a regulated market in the EEA)
with this rating were supplied material services** by the Nomura Group.
41% have been assigned a Neutral rating which, for purposes of mandatory disclosures, is classified as a Hold rating; 60% of companies withthis rating are investment banking clients of the Nomura Group*. 0% of companies (which are admitted to trading on a regulated market in the
EEA) with this rating were supplied material services by the Nomura Group
3% have been assigned a Reduce rating which, for purposes of mandatory disclosures, are classified as a Sell rating; 12% of companies withthis rating are investment banking clients of the Nomura Group*. 0% of companies (which are admitted to trading on a regulated market in the
EEA) with this rating were supplied material services by the Nomura Group.
As at 31 March 2022.
*The Nomura Group as defined in the Disclaimer section at the end of this report.
** As defined by the EU Market Abuse Regulation

Definition of Nomura Group's equity research rating system and sectors
The rating system is a relative system, indicating expected performance against a specific benchmark identified for each individual stock,subject to limited management discretion. An analyst’s target price is an assessment of the current intrinsic fair value of the stock based on an
appropriate valuation methodology determined by the analyst. Valuation methodologies include, but are not limited to, discounted cash flow
analysis, expected return on equity and multiple analysis. Analysts may also indicate expected absolute upside/downside relative to the statedtarget price, defined as (target price - current price)/current price.

STOCKSA rating of 'Buy', indicates that the analyst expects the stock to outperform the Benchmark over the next 12 months. A rating of 'Neutral',indicates that the analyst expects the stock to perform in line with the Benchmark over the next 12 months. A rating of 'Reduce', indicates thatthe analyst expects the stock to underperform the Benchmark over the next 12 months. A rating of 'Suspended', indicates that the rating, target
price and estimates have been suspended temporarily to comply with applicable regulations and/or firm policies. Securities and/or companies
that are labelled as 'Not rated' or shown as 'No rating' are not in regular research coverage. Investors should not expect continuing or

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additional information from Nomura relating to such securities and/or companies. Benchmarks are as follows: United States/Europe/Asia exJapan: please see valuation methodologies for explanations of relevant benchmarks for stocks, which can be accessed at:
http://go.nomuranow.com/research/globalresearchportal/pages/disclosures/disclosures.aspx; Global Emerging Markets (ex-Asia): MSCIEmerging Markets ex-Asia, unless otherwise stated in the valuation methodology; Japan: Russell/Nomura Large Cap.

SECTORSA 'Bullish' stance, indicates that the analyst expects the sector to outperform the Benchmark during the next 12 months. A 'Neutral' stance,
indicates that the analyst expects the sector to perform in line with the Benchmark during the next 12 months. A 'Bearish' stance, indicates thatthe analyst expects the sector to underperform the Benchmark during the next 12 months. Sectors that are labelled as 'Not rated' or shown as'N/A' are not assigned ratings. Benchmarks are as follows: United States: S&P 500; Europe: Dow Jones STOXX 600; Global Emerging
Markets (ex-Asia): MSCI Emerging Markets ex-Asia. Japan/Asia ex-Japan: Sector ratings are not assigned.

Target Price
A Target Price, if discussed, indicates the analyst’s forecast for the share price with a 12-month time horizon, reflecting in part the analyst's
estimates for the company's earnings. The achievement of any target price may be impeded by general market and macroeconomic trends, andby other risks related to the company or the market, and may not occur if the company's earnings differ from estimates.

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market maker is carried out in accordance with the definition given to it by specific laws and regulations of the US or other jurisdictions, this will
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This document has been approved by NIHK, which is regulated by the Hong Kong Securities and Futures Commission, for distribution in Hong
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Disclaimers required in Japan
Credit ratings in the text that are marked with an asterisk (*) are issued by a rating agency not registered under Japan’s Financial Instruments
and Exchange Act (“Unregistered Ratings”). For details on Unregistered Ratings, please contact the Research Production Operation Dept. of
Nomura Securities Co., Ltd.
Investors in the financial products offered by Nomura Securities may incur fees and commissions specific to those products (for example,
transactions involving Japanese equities are subject to a sales commission (all figures on a tax-inclusive basis) of up to 1.43% of the transaction
amount or a commission of ¥2,860 for transactions of ¥200,000 or less, while transactions involving investment trusts are subject to various
fees, such as commissions at the time of purchase and asset management fees, such as commissions at the time of purchase and asset
management fees (trust fees), specific to each investment trust).

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In addition, all products carry the risk of losses owing to price fluctuations or other factors. Fees and risks vary by product. Please thoroughly
read the written materials provided, such as documents delivered before making a contract, listed securities documents, or prospectuses.
Transactions involving Japanese equities (including Japanese REITs, Japanese ETFs, and Japanese ETNs, Japanese Infrastructure Funds)
are subject to a sales commission of up to 1.43% (tax included) of the transaction amount (or a commission of ¥2,860 (tax included) for
transactions of ¥200,000 or less). When Japanese equities are purchased via OTC transactions (including offerings), only the purchase priceshall be paid, with no sales commission charged. However, Nomura Securities may charge a separate fee for OTC transactions, as agreed withthe customer. Japanese equities carry the risk of losses owing to price fluctuations. Japanese REITs carry the risk of losses owing tofluctuations in price and/or earnings of underlying real estate. Japanese ETFs and ETNs carry the risk of losses owing to fluctuations in theunderlying indexes or other benchmarks. Japanese Infrastructure Funds carry out the risk of losses owing to fluctuations in price and/or
earnings of underlying infrastructures.
Transactions involving foreign equities are subject to a domestic sales commission of up to 1.045% (tax included) of the transaction amount(which equals the local transaction amount plus local fees and taxes in the case of a purchase or the local transaction amount minus local fees
and taxes in the case of a sale) (for transaction amounts of ¥750,000 and below, maximum domestic sales commission is ¥7,810 (taxincluded)). Local fees and taxes in foreign financial instruments markets vary by country/territory. When foreign equities are purchased via OTC
transactions (including offerings), only the purchase price shall be paid, with no sales commission charged. However, Nomura Securities may
charge a separate fee for OTC transactions, as agreed with the customer. Foreign equities carry the risk of losses owing to factors such as pricefluctuations and foreign exchange rate fluctuations.
Margin transactions are subject to a sales commission of up to 1.43% (tax included) of the transaction amount (or a commission of ¥2,860 (taxincluded) for transactions of ¥200,000 or less), as well as management fees and rights handling fees. In addition, long margin transactions are
subject to interest on the purchase amount, while short margin transactions are subject to fees for the lending of the shares borrowed. A marginequal to at least 30% of the transaction amount (at least 33% for online transactions) and at least ¥300,000 is required. With margintransactions, an amount up to roughly 3.3x the margin (roughly 3x for online transactions) may be traded. Margin transactions therefore carry
the risk of losses in excess of the margin owing to share price fluctuations. For details, please thoroughly read the written materials provided,such as listed securities documents or documents delivered before making a contract.
Transactions involving convertible bonds are subject to a sales commission of up to 1.10% (tax included) of the transaction amount (or acommission of ¥4,400 (tax included) if this would be less than ¥4,400). When convertible bonds are purchased via OTC transactions (including
offerings), only the purchase price shall be paid, with no sales commission charged. However, Nomura Securities may charge a separate fee for
OTC transactions, as agreed with the customer. Convertible bonds carry the risk of losses owing to factors such as interest rate fluctuations andprice fluctuations in the underlying stock. In addition, convertible bonds denominated in foreign currencies also carry the risk of losses owing tofactors such as foreign exchange rate fluctuations.
When bonds are purchased via public offerings, secondary distributions, or other OTC transactions with Nomura Securities, only the purchaseprice shall be paid, with no sales commission charged. Bonds carry the risk of losses, as prices fluctuate in line with changes in market interest
rates. Bond prices may also fall below the invested principal as a result of such factors as changes in the management and financial
circumstances of the issuer, or changes in third-party valuations of the bond in question. In addition, foreign currency-denominated bonds also
carry the risk of losses owing to factors such as foreign exchange rate fluctuations.
When Japanese government bonds (JGBs) for individual investors are purchased via public offerings, only the purchase price shall be paid, withno sales commission charged. As a rule, JGBs for individual investors may not be sold in the first 12 months after issuance. When JGBs forindividual investors are sold before maturity, an amount calculated via the following formula will be subtracted from the par value of the bondplus accrued interest: (1) for 10-year variable rate bonds, an amount equal to the two preceding coupon payments (before tax) x 0.79685 will be
used, (2) for 5-year and 3-year fixed rate bonds, an amount equal to the two preceding coupon payments (before tax) x 0.79685 will be used.
When inflation-indexed JGBs are purchased via public offerings, secondary distributions (uridashi deals), or other OTC transactions with
Nomura Securities, only the purchase price shall be paid, with no sales commission charged. Inflation-indexed JGBs carry the risk of losses, as
prices fluctuate in line with changes in market interest rates and fluctuations in the nationwide consumer price index. The notional principal of
inflation-indexed JGBs changes in line with the rate of change in nationwide CPI inflation from the time of its issuance. The amount of the
coupon payment is calculated by multiplying the coupon rate by the notional principal at the time of payment. The maturity value is the amountof the notional principal when the issue becomes due. For JI17 and subsequent issues, the maturity value shall not undercut the face amount.
Purchases of investment trusts (and sales of some investment trusts) are subject to a purchase or sales fee of up to 5.5% (tax included) of thetransaction amount. Also, a direct cost that may be incurred when selling investment trusts is a fee of up to 2.0% of the unit price at the time ofredemption. Indirect costs that may be incurred during the course of holding investment trusts include, for domestic investment trusts, an asset
management fee (trust fee) of up to 5.5% (tax included/annualized basis) of the net assets in trust, as well as fees based on investment
performance. Other indirect costs may also be incurred. For foreign investment trusts, indirect fees may be incurred during the course of holding
such as investment company compensation.
Investment trusts invest mainly in securities such as Japanese and foreign equities and bonds, whose prices fluctuate. Investment trust unit
prices fluctuate owing to price fluctuations in the underlying assets and to foreign exchange rate fluctuations. As such, investment trusts carry
the risk of losses. Fees and risks vary by investment trust. Maximum applicable fees are subject to change; please thoroughly read the writtenmaterials provided, such as prospectuses or documents delivered before making a contract.
In interest rate swap transactions and USD/JPY basis swap transactions (“interest rate swap transactions, etc.”), only the agreed transaction
payments shall be made on the settlement dates. Some interest rate swap transactions, etc. may require pledging of margin collateral. In someof these cases, transaction payments may exceed the amount of collateral. There shall be no advance notification of required collateral value or
collateral ratios as they vary depending on the transaction. Interest rate swap transactions, etc. carry the risk of losses owing to fluctuations inmarket prices in the interest rate, currency and other markets, as well as reference indices. Losses incurred as such may exceed the value ofmargin collateral, in which case margin calls may be triggered. In the event that both parties agree to enter a replacement (or termination)transaction, the interest rates received (paid) under the new arrangement may differ from those in the original arrangement, even if terms otherthan the interest rates are identical to those in the original transaction. Risks vary by transaction. Please thoroughly read the written materials

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provided, such as documents delivered before making a contract and disclosure statements.
In OTC transactions of credit default swaps (CDS), no sales commission will be charged. When entering into CDS transactions, the protection
buyer will be required to pledge or entrust an agreed amount of margin collateral. In some of these cases, the transaction payments may exceed
the amount of margin collateral. There shall be no advance notification of required collateral value or collateral ratios as they vary depending on
the financial position of the protection buyer. CDS transactions carry the risk of losses owing to changes in the credit position of some or all of
the referenced entities, and/or fluctuations of the interest rate market. The amount the protection buyer receives in the event that the CDS is
triggered by a credit event may undercut the total amount of premiums that he/she has paid in the course of the transaction. Similarly, theamount the protection seller pays in the event of a credit event may exceed the total amount of premiums that he/she has received in thetransaction. All other conditions being equal, the amount of premiums that the protection buyer pays and that received by the protection seller
shall differ. In principle, CDS transactions will be limited to financial instruments business operators and qualified institutional investors.
Transfers of equities to another securities company via the Japan Securities Depository Center are subject to a transfer fee of up to ¥11,000(tax included) per issue transferred depending on volume. No account fee will be charged for marketable securities or monies deposited.

Nomura Securities Co., Ltd.
Financial instruments firm registered with the Kanto Local Finance Bureau (registration No. 142)
Member associations: Japan Securities Dealers Association; Japan Investment Advisers Association; The Financial Futures Association ofJapan; and Type II Financial Instruments Firms Association.
The Nomura Group manages conflicts with respect to the production of research through its compliance policies and procedures (including, but
not limited to, Conflicts of Interest, Chinese Wall and Confidentiality policies) as well as through the maintenance of Chinese Walls andemployee training.
Additional information regarding the methodologies or models used in the production of any investment recommendations contained
within this document is available upon request by contacting the Research Analysts of Nomura listed on the front page. Disclosuresinformation is available upon request and disclosure information is available at the Nomura Disclosure web page:
http://go.nomuranow.com/research/globalresearchportal/pages/disclosures/disclosures.aspx
Copyright © 2022 Nomura Securities Co., Ltd. All rights reserved.

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