Nomura High-yield J-REIT Index
EQUITY QUANTITATIVE RESEARCH (INDEX)

Index rulebook

Global Markets Research
19 March 2019

Research analysts
The Nomura High-yield J-REIT Index
The Nomura High-yield J-REIT Index is a non-market-cap-weighted index comprising
real estate investment trusts (REITs) with a high forecast dividend yield, selected froma universe of all REITs listed on Japanese stock exchanges (all J-REITs). Weights ofindividual J-REITs within the index are in proportion to their forecast dividend yieldscore multiplied by their market cap (with weights capped at 5%).

Japan index products
Quantitative Research Dept. - NSC
Index Operations Dept. - NSC
idx_mgr@jp.nomura.com+81 3 6703 3986

Index characteristics
 The index comprises the top 30-40 listed J-REITs in terms of forecast dividend
yield.
It is a non-market-cap-weighted index, and J-REITs with a higher forecast dividend
yield have a higher weight in the index



To take investability into account, J-REITs are screened in terms of market cap andaverage daily turnover

The index is reconstituted once a year as a general rule

Japanese version published on
March 19, 2019
Production Complete: 2019-03-19 11:22 UTC

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

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Contents
1. Periodic reconstitutions .......................................................................................................................... 3
1.1 Periodic reconstitution date ............................................................................................................................... 3
1.2 Periodic reconstitution base date ...................................................................................................................... 3
1.3 Announcement of periodic reconstitutions......................................................................................................... 3

2. J-REIT selection and index construction method ................................................................................... 4
2.1 J-REIT selection universe .................................................................................................................................. 4
2.2 Calculation of forecast dividend yield and forecast dividend yield score .......................................................... 4
2.3 Selection of J-REITs for inclusion in index ........................................................................................................ 5
2.4 Weighting of constituent J-REITs and number of investment units included in index ....................................... 6

3. Unscheduled reconstitutions .................................................................................................................. 8
3.1 Response to mergers, etc.................................................................................................................................. 8
3.2 Removal of J-REITs ........................................................................................................................................... 8

4. Index calculation ..................................................................................................................................... 9
4.1 Index base date, index base value, index announcement date ........................................................................ 9
4.2 Calculation of index market cap ........................................................................................................................ 9
4.3 Calculation of index values ................................................................................................................................ 9
4.4 Adjusting base market capitalization ............................................................................................................... 11
4.5 Change in index inclusion ratios ...................................................................................................................... 11

5. Data publication services ...................................................................................................................... 12
Policies with regard to NSC’s indices ....................................................................................................... 13
Appendix A-1 ............................................................................................................................................ 142

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1. Periodic reconstitutions
1.1 Periodic reconstitution date
The periodic reconstitution date is the first business day of September each year, andthe reconstitution is carried out after the close of trading on the last business day ofAugust.

1.2 Periodic reconstitution base date
The periodic reconstitution base date is the last business day of the month that is twomonths before the periodic reconstitution date. Constituent J-REITs and the number ofinvestment units in each constituent J-REIT to be included in the index following its
periodic reconstitution are determined on the basis of calculations using data as of thereconstitution base date.

1.3 Announcement of periodic reconstitutions
As a general rule, the announcement of a periodic reconstitution will appear on our
website at around 16:00 (Japan time) ten business days before the periodic
reconstitution date. However, this will not apply in the event of unforeseen circumstancesor when information cannot be confirmed.

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2. J-REIT selection and index
construction method
2.1 J-REIT selection universe
The J-REIT selection universe is all J-REITs listed on Japanese stock exchanges (all JREITs) as of the periodic reconstitution base date. However, J-REITs that meet thefollowing criteria as of the periodic reconstitution base date are excluded.
Securities assigned for delisting

Securities assigned for delisting are not included in the universe.


Securities under supervision (examination) and securities under supervision(confirmation)

Securities under supervision (examination) and securities under supervision(confirmation) that are not included in the index immediately prior to periodic
reconstitutions are not included in the universe.


TOB target J-REITs 1

REITs that are the targets of tender offers (ie, takeover bids) may be excluded from theselection universe only if all of the following requirements are met:
(1) the offer close date is between the periodic reconstitution base date and theperiodic reconstitution date;(2) the party conducting the tender offer plans to acquire all the outstanding
investment units in the target J-REIT; and(3) the party conducting the tender offer is planning to acquire all of the investment
units of the target J-REIT in exchange either for cash or its own shares(investment units), and the target J-REIT agrees to the offer.

2.2 Calculation of forecast dividend yield and forecast
dividend yield score2.2.1 Calculating forecast dividend yield
Forecast dividend yield is calculated from the most recent available forecast by the JREIT of its dividend per unit (DPU) as of the periodic reconstitution base date, as follows:

Forecast dividend yield (%) = annualized DPU ÷ unit price on periodic reconstitution
base date X 100
Annualized DPU = forecast DPU X 12 ÷ number of months in accounting period2Forecast DPU is selected according to the following order of precedence :(Next accounting period DPU + current accounting period DPU) ÷ 2 ＞ current
accounting period DPU ＞ previous accounting period DPU

1This rule will apply to periodic reconstitutions from September 2018.

2

We define the J-REIT's DPU forecast for the accounting period that is closest to the periodic reconstitution date,within the future 12-month period including the periodic reconstitution date, as the "current accounting period
DPU", and the J-REIT's DPU forecast for the accounting period that is furthest from the periodic reconstitution
date, within the future 12-month period including the periodic reconstitution date, as the "next accounting period
DPU". Meanwhile, we define the J-REIT's DPU forecast for the accounting period closest to the periodic
reconstitution date, within the 12 months up to the month before the periodic reconstitution date, as the "previous
accounting period DPU".

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2.2.2 Calculation of forecast dividend yield score
In line with the formula below, the standardized forecast dividend yield score is
calculated by adjusting the values so that the average forecast dividend yield for all JREITs is 0 and the standard deviation is 1 3.

Standardized forecast dividend yield score for individual REIT
forecast dividend yield for individual REIT
average forecast dividend yield for all Japanese REITs
standard deviation of forecast dividend yield for all Japanese REITs

The forecast dividend yield score, in which the standardized forecast dividend yieldscores are converted to scores between zero and one, is then calculated using thefollowing formula.

Forecast dividend yield score for REIT

1

exp

1
standardized forecast dividend yield score for individual REIT

2.3 Selection of J-REITs for inclusion in index
The J-REITs selected for inclusion in the index are those in the selection universe (see2.1) with the highest forecast dividend yield 4, after taking also into account liquidity andother screening criteria and the rebalancing band 5.

Liquidity and other screening criteria
J-REITs that meet the following criteria are selected from the selection universe (see 2.1).
Top 98% of selection universe in terms of market cap



Top 95% of selection universe in terms of average daily turnover over the past 60
daysMore than one year since listing, as of periodic reconstitution base date

Determining the number of J-REITs to be included in index[Number of J-REITs that meet liquidity and other screening criteria X 0.8 (rounded up or
down to the nearest whole number] (N) is first calculated, and then the number of JREITs to be included in the index is set at 30-40 using the following method:

If N is less than 30

number of J-REITs selected for inclusion in index is 30



If N is more than 40

number of J-REITs selected for inclusion in index is 40



If N is between 30 and 40

number of J-REITs selected for inclusion in index is N

Rebalancing band
In order to limit frequent J-REIT replacements caused by very small differences inforecast dividend yield, priority is given to the selection of J-REITs with a rank number
ranging from [number of J-REITs selected for inclusion in index – 2] to [number of JREITs selected for inclusion in index + 3] in terms of forecast dividend yield.

3
Values are adjusted so that all standardized forecast dividend yield scores fall within the range -3 to +3, with ascore of more than +3 becoming +3 and a score of less than -3 becoming -3.
4During the period between the periodic reconstitution base date and the business day before the details of theperiodic reconstitution are published, if a J-REIT selected for the index is delisted or designated as a security
assigned for delisting, it will not be included in the index, and another J-REIT or J-REITs will be selected until thenumber of J-REITs reaches the number of J-REITs to be included in the index in line with the J-REIT selection
procedure.
5

The rebalancing band will apply to periodic reconstitutions from September 2018.

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J-REIT selection procedure
J-REITs that meet the liquidity and other screening criteria are selected for inclusion in
the index using the procedure set out below.
(1) The top J-REITs in terms of forecast dividend yield on the reconstitutions base date,up to the J-REIT ranked [number of J-REITs selected for inclusion in index – 3], areselected unconditionally.
(2) Next, the J-REITs that are already included in the index and have a rank number
ranging from [number of J-REITs selected for inclusion in index – 2] to [number of JREITs selected for inclusion in index + 3] in terms of forecast dividend yield (therebalancing band) are selected until the number of J-REITs reaches the number of
J-REITs to be included in the index.
(3) If the J-REITs selected in steps (1) and (2) above do not reach the number of JREITs to be included in the index, additional J-REITs are selected in order offorecast dividend, from those with a rank of [number of J-REITs selected forinclusion in index – 2] downwards.
(4) If the number of J-REITs that meet the liquidity and other screening criteria is lessthan 30, J-REITs are selected from among those in the selection universe (see 2.1)
that have not yet been selected, in order of market cap (highest first), until the total
number of J-REITs selected for the index reaches 30.

Fig. 1: Summary of index construction method(1) Selection universe defined as all listed J-REITs

Periodic reconstitution once a year (September)(2) Screening based on liquidity etc

Selection of J-REITs that meet the following criteria:-Top 98% of selection universe in terms of market cap-Top 95% of selection universe in terms of average daily turnover overthe past 60 days
- Listed for more than a year(3) Selection of J-REITs(top J-REITs in terms of forecast dividend yield)

30-40 J-REITs selected in order of forecast dividend yield, highest first
Rebalancing band taken into account(4) Weights determined(non-market-cap-weighted, weight cap of 5%)

Index inclusion weights of selected J-REITs determined
Weight based on [forecast dividend yield score X market cap]

Note: See text for details of index construction method.
Source: Nomura

2.4 Weighting of constituent J-REITs and number ofinvestment units included in index
2.4.1 Constituent J-REIT weight and weight cap
Weights for each J-REIT included in the index are in proportion to their [forecast dividend
yield score X market cap] on the periodic reconstitution base date. However, the6Nomura | Nomura High-yield J-REIT Index

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maximum weight for each constituent J-REIT is set at 5%, and the weight of J-REITs
exceeding the limit is allocated among the other constituent J-REITs in proportion to their[forecast dividend yield score X market cap].

2.4.2 Number of investment units included in index for each constituent J-REIT
and index inclusion ratio
The number of investment units included in the index and the index inclusion ratio foreach constituent J-REIT are calculated using data as of the periodic reconstitution basedate so that the weight is equal to the constituent J-REIT weight set out in 2.4.1.
Market cap of J-REITi included in index = weight of J-REITi included in index x Σi(market capi)
No. of investment units in J-REITi included in index = market cap of J-REITi included
in index ÷ Nomura composite unit price for J-REITi 6.
Index inclusion ratio of J-REITi included in index = no. of investment units in J-REITi
included in index ÷ no. of investment units outstanding in J-REITi for index calculation
purposesi indicates constituent J-REIT number i and Σi indicates the sum of all index constituents.

6
The Nomura composite unit price is the price on the exchange that is judged to have the most accurate price for
the J-REIT, based on the percentage of days traded and trading value over the previous 60 business days. As ageneral rule, the exchange is selected on a daily basis. The unit price is selected according to the following orderof 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 selectedexchange if these are available.

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3. Unscheduled reconstitutions
3.1 Response to mergers, etc 7
As a general rule, temporary exclusions of J-REITs from the index are avoided and theconsistency of index constituents is maintained based on the following rules.

3.1.1 Absorption-type mergers
When a J-REIT is delisted because it is about to be merged into another J-REIT, it may
be included in the index after delisting but removed from the index on the day of thelisting change (or on the following business day if this is a non-business day). Following
its delisting, and until its removal from the index, the valuation of the J-REIT to bemerged is based on the market value of the J-REIT that will become the surviving J-REIT
multiplied by the merger ratio. Also, the index inclusion ratio of the surviving J-REIT ischanged on the day of the listing change (or on the following business day if this is a
non-business day) based on the merger ratio.

3.1.2 Consolidation mergers
In the case of a consolidation merger, as a general rule temporary exclusions of J-REITs
from the index are avoided and the consistency of index constituents is maintained. The
old J-REIT is removed from the index on the day that the new J-REIT is listed (or on thefollowing business day if this is a non-business day). The valuation of the old J-REIT on
the day before its delisting is used as its valuation after its delisting. Also, the new JREIT is included in the index on the day of its listing. However, if it becomes clear thatthe new J-REIT will not be included in the index after the next periodic reconstitution, it isremoved from the index on the delisting date.

3.2 Removal of J-REITs
3.2.1 Designation as securities to be delisted
J-REITs designated as securities to be delisted are removed from the index fourbusiness days later (or on the following business day if this is a non-business day).
However, J-REITs that are listed on more than one market and have not been
designated for delisting on one or more of the markets will not be removed.

3.2.2 Delisting
J-REITs that are delisted for reasons other than those stated in [3.1 Response tomergers, etc] are removed from the index on the day of their delisting.

7

This rule applies beginning with changes in capital structure in August 2017.

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4. Index calculation
4.1 Index base date, index base value, index announcement
date
The base date for the Nomura High-yield J-REIT Index rulebook is 31 August 2007 andthe value of the index on the base date (base value) is 10,000.
Publication of index values started on 4 September 2017.

4.2 Calculation of index market cap
Market cap of J-REITi included in index = weight of J-REITi included in index x Σi(market capi)
Index market cap = Σi (market cap of J-REITi included in index)
i indicates constituent J-REIT number i and Σi indicates the sum of all index constituents.

4.3 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,
the index is calculated as follows using base market capitalization 8. Subscript indicatesthe current day and
1 indicates the preceding business day.
Calculation of yen-based index valuesIndex excluding dividends
Base market cap
Returnindex market cap
base market cap

Index value

index market cap

index value

adjusted market cap

1
1

returnIndex including dividends
Base market cap
Returnindex market cap

adjusted market cap

index market cap
total dividends
base market cap

Index value

index value

1

adjusted total dividends

1

return

Method for reflecting dividends
For the index including dividends, dividends are reflected in index values on the exdividend date. However, as the value of the dividend has not yet been determined as ofthe ex-dividend date, the J-REIT's issued forecast dividend is used 9. In the event that adifference subsequently arises between the dividend forecast and the actual dividend,
the base market capitalization is adjusted on the last business day of the month of theearnings announcement (if the earnings announcement is made on the last business dayof the month, the base market capitalization is adjusted on the last business day of thefollowing month). In addition, if dividend adjustment is required, the base market
8
In 4.3, adjusted market cap is calculated as change in market cap resulting from change in capital structure ofindex constituents or change in market cap resulting from change in index constituents. In addition, adjusted total
dividends is calculated as difference between forecast and actual dividends if these are different.
9This rule applies from accounting periods ended end-December 2011 onwards. For periods before this, theactual dividend as of the ex-dividend date is used.

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capitalization is adjusted on the last business day of the month in which this became
clear (if the day in which this became clear is the last business day of the month, thebase market capitalization is adjusted on the last business day of the following month).

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4.4 Adjusting base market capitalization
Base market capitalization is adjusted in the following way if there is a change in capital
structure or in index constituents (Figure 2). However, no adjustment is made to basemarket capitalization to reflect changes in capital structure that do not involve payment,such as investment unit splits or reverse investment unit splits, as these do not affectmarket cap.
Fig. 2: Timing of adjustments resulting from changes in capital structure
Type of change in capital structure
J-REIT
replacement

Capitalincrease

Capitalreduction

Other

Adjustment date

Unit price used

Merger (reverse investment unit split)

Date of listing change

Previous day's price

REIT replacement

Replacement datePrevious day's price

Rights offering

Ex-rights dateIssue price

Gratis allocation of new investment units

Ex-rights date

Exercise price

Public offering (issue of new investment units via
public offering)

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

Capital increase via third-party placement(Issuance of new investment units via third-party
placement)

Five business days after date of listing change

Previous day's price

Exercise of investment unit acquisition rights

Last business day of month in which number of new investment
units for which rights were exercised becomes known

Previous day's price

Retirement of investment units (investment unit
buyback)

Last business day of month following month of investment unit
retirement

Previous day's price

Rights offering refusal

Last business day of month in which rights offering refusal isannounced (or last business day of following month if announcement Previous day's priceis within five business days of month-end)

Other adjustment

Other adjustments to base market capitalization, if required, aremade on the last business day of the month of the disclosure of thePrevious day's pricerelevant information (or the last business day of the following monthif the disclosure is made within five business days of the month-end)

Source: Nomura

4.5 Change in index inclusion ratios
Index inclusion ratios are changed when constituent J-REITs are changed in periodic
and unscheduled reconstitutions and when necessary for other reasons.
In addition, when the following changes in capital structure result in a change in thenumber of investment units outstanding for index calculation purposes, the index
inclusion ratio is changed so that the number of investment units in the stock included in
the index does not change.


Reverse investment unit split 10Rights offeringGratis allocations of new investment unit acquisition rights



Public offering (issue of new investment units via public offering)

Capital increase via third-party placement (issue of new investment units via thirdparty placement)

Exercise of new investment unit acquisition rights

Retirement of own investment units (investment unit buyback)Rights offering refusal

Other adjustments

10
When a J-REIT to be merged or consolidated is an index constituent, the index inclusion ratio of the surviving or
new J-REIT is changed so that the total number of investment units in the index remains the same as it was
before, taking the merger ratio into account.

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5. Data publication services
Data for the Nomura High-yield J-REIT Index can be obtained via the following
channels. 11

Index values are published in the following media:
Bloomberg: NMRCJOJR (index excluding yen-based dividends) NMRCJIJR (index including yen-based dividends)
QUICK: NRIJ@
REUTERS : NHYJR (index excluding yen-based dividends).NHYJRTR (index including yen-based dividends)

Our website: http://qr.nomura.co.jp/index.html (Japanese only)

Contact information
Nomura Securities Co., Ltd.
Global Research Division, Financial Engineering & Technology Research CenterIndex Operations Dept.
TEL: +81 (0)3 6703 3986
e-mail: idx_mgr@jp.nomura.com

The Nomura High-yield J-REIT Index is released by Nomura Securities Co., Ltd.
("Nomura") and the intellectual property and all other rights belong to Nomura. Nomura
does not guarantee the accuracy, 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.
In the case of an unavoidable event such as a computer breakdown or natural disaster,
calculation of the index 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.

11

Published data are all for reference only.

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Policies with regard to NSC’s indices
The below index-related policies are published on our website.
See the following link for details:
http://qr.nomura.co.jp/en/guides/index.html

 Index Calculation Policy Complaints Handling Policy Glossary (Equity)
 Index Governance Framework
 Conflicts of Interest Policy

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Appendix A-1
Analyst Certification
I, Quantitative Research 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) nopart 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., or Instinet, LLC on 1-877-865-5752. If you have any difficulties with the website, pleaseemail 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 or ILLC, and may not be subject to
FINRA Rule 2241 restrictions on communications with covered companies, public appearances, and trading securities held by a researchanalyst account.
Nomura Global Financial Products Inc. (“NGFP”) Nomura Derivative Products Inc. (“NDPI”) and Nomura International plc. (“NIplc”) areregistered with the Commodities Futures Trading Commission and the National Futures Association (NFA) as swap dealers. NGFP, NDPI, andNIplc 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:
51% have been assigned a Buy rating which, for purposes of mandatory disclosures, are classified as a Buy rating; 43% 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.
43% have been assigned a Neutral rating which, for purposes of mandatory disclosures, is classified as a Hold rating; 54% 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
6% have been assigned a Reduce rating which, for purposes of mandatory disclosures, are classified as a Sell rating; 15% 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 December 2018.
*The Nomura Group as defined in the Disclaimer section at the end of this report.
** As defined by the EU Market Abuse Regulation
Distribution of ratings (Instinet, LLC)
The distribution of all ratings published by Instinet, LLC Equity Research is as follows:
55% have been assigned a Buy rating which, for purposes of mandatory disclosures, are classified as a Buy rating; Instinet LLC has provided
investment banking services to 0% of companies with this rating within the previous 12 months.
41% have been assigned a Neutral rating which, for purposes of mandatory disclosures, is classified as a Hold rating; Instinet LLC has provided
investment banking services to 0% of companies with this rating within the previous 12 months.
4% have been assigned a Reduce rating which, for purposes of mandatory disclosures, are classified as a Sell rating; Instinet LLC has provided
investment banking services to 0% of companies with this rating within the previous 12 months.

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.

Disclaimers
This publication contains material that has been prepared by the Nomura Group entity identified on page 1 and, if applicable, with thecontributions of one or more Nomura Group entities whose employees and their respective affiliations are specified on page 1 or identified
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originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of this information. Without limiting anyof the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in, or related to, computing or compiling the information
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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
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transactions involving Japanese equities are subject to a sales commission (all figures on a tax-inclusive basis) of up to 1.404% of thetransaction amount or a commission of ¥2,808 for transactions of ¥200,000 or less, while transactions involving investment trusts are subject tovarious fees, such as commissions at the time of purchase and asset management fees (trust fees), specific to each investment trust). 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) are subject to a sales commissionof up to 1.404% of the transaction amount (or a commission of ¥2,808 for transactions of ¥200,000 or less). When Japanese equities arepurchased 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. Japanese equities carry the risk of losses
owing to price fluctuations. Japanese REITs carry the risk of losses owing to fluctuations in price and/or earnings of underlying real estate.
Japanese ETFs carry the risk of losses owing to fluctuations in the underlying indexes or other benchmarks.
Transactions involving foreign equities are subject to a domestic sales commission of up to 1.026% 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 thecase of a sale) (for transaction amounts of ¥750,000 and below, maximum domestic sales commission is ¥7,668). Local fees and taxes inforeign 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 price fluctuations and foreignexchange rate fluctuations.
Margin transactions are subject to a sales commission of up to 1.404% of the transaction amount (or a commission of ¥2,808 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 thepurchase amount, while short margin transactions are subject to fees for the lending of the shares borrowed. A margin equal to at least 30% of
the transaction amount (at least 33% for online transactions) and at least ¥300,000 is required. With margin transactions, an amount up toroughly 3.3x the margin (roughly 3x for online transactions) may be traded. Margin transactions therefore carry the risk of losses in excess of themargin 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 1.08% of the transaction amount (or a commission of¥4,320 if this would be less than ¥4,320). When convertible bonds are purchased via OTC transactions (including offerings), only the purchaseprice 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 and price fluctuations in
the underlying stock. In addition, convertible bonds denominated in foreign currencies also carry the risk of losses owing to factors 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 5.4% of the transaction
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 of redemption.
Indirect costs that may be incurred during the course of holding investment trusts include, for domestic investment trusts, an asset managementfee (trust fee) of up to 5.4% (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
provided, such as documents delivered before making a contract and disclosure statements.

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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.
No account fee will be charged for marketable securities or monies deposited. Transfers of equities to another securities company via the Japan
Securities Depository Center are subject to a transfer fee of up to ¥10,800 per issue transferred depending on volume.

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 listed on the front page. Disclosures information
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 © 2019 Nomura Securities Co., Ltd. All rights reserved.

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