19-D-0 236

June 14, 2019
JCR Green Bond Evaluation b y Japan Credit Rating Agenc y, Ltd.
Japan Credit Rating Agency, Ltd. (JCR) announces the following preliminary Green Bond Evaluation Results.

JCR Assigned preliminary Green 1 to Bonds of
Takasago Thermal Engineering Co., Ltd.
Subject:

Takasago Thermal Engineering Co., Ltd. 3rd unsecured bond(limited inter-bond pari passu rider) (Takasago Thermal Green Bond)

Type

:

Straight bonds

Issue Amount:

JPY 5 billion

Interest Rate:

To be determined

Issue Date:

July 2019 (scheduled)

Redemption Date:

July 2026 (scheduled)

Method of
Repayment:

BulletUse of Proceeds:

Funds for the construction of the Innovation Center<Green Bond Preliminary Evaluation Results>
Overall evaluation

Green 1

Greenness Evaluation(Use of Proceeds)
Management, Operation andTransparency Evaluation

g1
m1

Chapter 1: Evaluation Overview
Takasago Thermal Engineering Co., Ltd. (the Company) is the largest air conditioning equipment construction
company established in 1923. The Company has earned a reputation for its indoor air-conditioning control andenergy optimization technologies it has developed since its establishment. The Company offers a wide range ofservices, from general-purpose systems for office buildings etc. to industrial air conditioning system such as clean
rooms, and it particularly excels in construction of large-scale office buildings. Together with group companies, it
provides one-stop services for the design, construction, maintenance, operation management, and renovation of air
conditioning equipment for buildings, factories, and facilities for all uses.
The Company has defined the Group's goal as "Contributing to shifting the world towards a decarbonized society
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through environmental engineering," and is promoting business activities to realize this goal. With regard to theenvironment, the Company has formulated the Basic Policy on the Environment. In addition to that, it has
formulated and implemented specific activities in line with the objectives of "Establishment of a low-carbon
society," "Contribution to a society harmonized with nature," and "Contribution to creating a recycling-oriented
society."
The use of proceeds of the bonds which are the subject of this evaluation (the Bonds) is new investment for theconstruction and related expenses (construction costs, etc.) of the (tentative name) Innovation Center (theInnovation Center) under construction in Tsukubamirai City, Ibaraki Prefecture. All of these investments are for theacquisition and construction of green buildings which attain ZEB, etc. The main use of the Innovation Center is toconduct R&D and demonstrate experiments for environmental engineering, and it is expected to have a ripple effecton the reduction of environmental impacts. JCR confirmed that it has taken appropriate measures to avoid or
mitigate the negative environmental impacts that may occur and that the construction of the Innovation Center isunlikely to have serious adverse environmental impacts that outweigh the environmental improvements through thematerials relating to the Innovation Center and the interviews to the Company. Based on the above, JCR evaluatesthat the use of proceeds has a high environmental improvement effect.
The project was selected through an appropriate process with the involvement of a specialized department, and thatthe management of funds was properly managed using the internal system. Therefore, JCR confirmed that the
management and operation system for the green project, which the proceeds of the Bonds are used for, wasestablished and highly transparent. In addition, JCR confirmed that the Company’s management takes high priority
to the environmental issues.
Based on the JCR Green Finance Evaluation Methodology, JCR assigned "g1" for the preliminary evaluation of the"Greenness Evaluation (use of proceeds)" and "m1" for the preliminary evaluation of the "Management, Operation
and Transparency Evaluation." As a result, the JCR assigned "Green 1" for overall "JCR preliminary Green Bond
Evaluation." The evaluation results are described in detail in the next chapter.
The Bond is considered to meet the standards for the items required by the Green Bond Principles and the Ministryof the Environment's Green Bond Guidelines.12

1

ICMA(International Capital Market Association) Green Bond Principles 2018https://www.icmagroup.org/green-social-and-sustainability-bonds/green-bond-principles-gbp/
2
Ministry of the Environment's Green Bond Guidelines 2017 http://greenbondplatform.env.go.jp/pdf/greenbond_guideline2017.pdf
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Chapter 2: Current Situation of Target Businesses and JCR Evaluation for Each
Evaluation Item
E v a l u a t i o n P h a s e 1 : G r e e n ne s s E v a l u a t i o n
Based on the current status described below and JCR's evaluation of the subject, JCR
evaluated 100% of the use of proceeds was green project, and assigned "g1", the highest rankfor Phase 1: Greenness Evaluation.

(1) JCR's key consideration in this factor
In this section, JCR confirms whether the proceeds are used for green projects that have a clear environmental
improvement effect. Next, JCR confirms whether an internal department/division which is exclusively incharge of environment issues or a third party agency prove it sufficiently and have taken necessarily
workaround or mitigation measures, in case of possibility use of proceeds has negative impact on theenvironment. Finally, JCR confirms consistency with the Sustainable Development Goals (SDGs).

(2) Current status of evaluation targets and JCR's evaluation
Overview of uses of funds
The use of proceeds of the Bonds is new investment for the construction of the Innovation Center underconstruction described below.
Property Name
Location
Principal Uses
Site Area

Innovation Center
2-19 Fujimigaoka, Tsukubamirai City, Ibaraki
Offices and research facilities
22,746 m2

Total Floor Area

Approx. 11,600 m2

Number of Stories

2 floors above ground

Completion

End of January 2020

Environmental Certification LEED:Gold (office buildings)(planned)
BELS: 5 Stars
a. Environmental Improvement Effects of the Projecti. 100% of the proceeds are used for the construction of the Innovation Center (Office building: ZEB,
the whole site: ZEB Ready). In addition, the building is expected to have a ripple effect of reducing
environmental impacts by conducting research and development and demonstration experiments forenvironmental engineering. Therefore it is a project with a high environmental improvement effect.
The proceeds will be allocated to funds for the construction of the Innovation Center. The Innovation
Center will introduce renewable energy and leading air-conditioning systems as places for research anddevelopment and verification of construction equipment and facilities, including air-conditioning
equipment related to its core business, technologies regarding reducing environmental impact, and new
businesses.
The Innovation Center aims to achieve ZEB Ready for the whole site and ZEB for the main officebuilding. ZEB (Net Zero Energy Building) refers to buildings whose annual fossil energy consumption isnet zero or almost zero. ZEB buildings reduce energy load by advanced building design, actively utilize
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natural energy through the adoption of passive technologies and introduce highly efficient equipment
systems and renewable energy. Thus, they can enhance energy independence while maintaining thequality of the indoor environment and achieving significant energy conservation.
There are 3 levels of ZEB: (i) ZEB (buildings that reduce primary energy consumption by more than 50%
through energy conservation + buildings that reduce primary energy consumption by more than 100%
through energy creation); (ii) Nearly ZEB (buildings that reduce primary energy consumption by morethan 50% through energy conservation + buildings that reduce primary energy consumption by more than
75% through energy creation); and (iii) ZEB Ready (buildings that reduce primary energy consumption
by more than 50%).

The main technologies that the Company introduces in the Innovation Center include (i) 3 air
conditioning systems using groundwater as a cascade heat, (ii) natural ventilation windows using daylightand superior winds, (iii) indirect lighting systems using metal radiant panels, (iv) stabilization ofrenewable energies such as ultra-small woody biomass generators. These energy-saving technologies are
expected to achieve significant primary energy reduction rates compared to the primary energy
consumption standard3.
After the completion of the Innovation Center, the Company plans to continually demonstrate andevaluate technologies that contribute to energy conservation and the creation of a healthy environment.
At the Innovation Center, the cycle of R&D, demonstration experiments, and social returns, in which theCompany not only announces technologies and products that effects have been confirmed throughdemonstration experiments but also makes them lead to new R&D, will be repeated. This cycle is in linewith the Company’s vision of "Contributing to shifting the world towards a decarbonized society throughenvironmental engineering." JCR confirms that the Innovation Center is expected not only to reduce theenvironmental burden of the facility itself, but also to have a ripple effect on the reduction of theenvironmental burden resulting from the cycle of R&D, demonstration experiments, and returns tosociety, and that it is highly effective in improving the environment.

3

Simulation results due to completion in January 2020. Reductions from renewable energy are partially
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ii. The proceeds are used for "green buildings" and "energy conservation" as defined in the Green
Bond Principles or the Ministry of the Environment's Green Bond Guidelines, which are recognized
as regional, national or international standards or certified.
According to a survey by the World Green Building Council, CO2 emissions from buildings account for
39% of total emissions. As the measures to prevent global warming in Japan, it is important to further
popularize green buildings with high energy-saving performance that reduce CO2 emissions frombuildings. In the Fifth Basic Energy Plan approved by the Cabinet in July 2018, the realization of athorough energy-saving society is one of the basic policies toward 2030. One of the important measuresfor energy conservation in the building and housing areas is the promotion of energy conservation
measures such as renovation and reconstruction of existing buildings and houses with low energy
conservation performance, and enhancement and dissemination of comprehensive evaluation and labelingsystems for environmental performance, including energy conservation performance. The furtherance of
ZEB is important for promoting the basic policies because it encourages the promotion of high insulationof new buildings and houses and the introduction of energy-saving equipment, as well as the promotionof low-carbon certified buildings with higher energy-saving performance. Japan's specific objective for
ZEB is “to achieve ZEB by 2020 with regard to newly constructed public buildings, and by 2030 for
newly constructed buildings nationwide on average.” As a result, the development of technologies andverification projects for the realization and dissemination of ZEB, which the Company is promoting
through the construction of the Innovation Center, plays an important role in energy policy of Japan.
In Europe, all new buildings to be built after 2020 are required to be "generally zero energy," and the U.S.
policy aims to ZEB in all new commercial buildings to be built by 2030. From these policies, it can besaid that technological development aimed at promoting ZEB dissemination is an area of high importanceworldwide.
b. Negative Impacts on the Environment
JCR confirms that, the Company conducted preliminary surveys, including ground surveys and groundsurveys at the design stage, as well as notifications and consultations with government agencies inaccordance with relevant laws and ordinances, and held briefings with local residents to minimize thenegative impacts on the environment in constructing the Innovation Center through the interviews to theCompany. JCR confirms that the Company has taken appropriate measures to avoid or mitigate theadverse environmental impacts that may arise.
c. Consistency with SDGs
This project is classified into energy conservation, regional/national, or internationally recognized
standards and certification green buildings. JCR evaluated this project as contributing to the following
SDGs objectives and targets, while referring to ICMA's SDGs mappings.
Objective 7: Ensure access to affordable, reliable, sustainable, and modern energy forall
Target 7.3. By 2030, double the global rate of improvement in energy efficiency.
Objective 9: Build resilient infrastructure, promote inclusive and sustainableindustrialization and foster innovation
Target 9.4. By 2030, upgrade infrastructure and retrofit industries to make themsustainable, with increased resource-use efficiency and greater adoption of clean andenvironmentally sound technologies and industrial processes, with all countries taking
action in accordance with their respective capabilities.
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Target 11: Make cities and human settlements inclusive, safe, resilient and sustainable
Target 11.6. By 2030, reduce the adverse per capita environmental impact of cities,
including by paying special attention to air quality and municipal and other waste
management.

(Reference) Certification System for each Green Building① BELS
The acronym for the English name of the Building Energy Conservation Performance Indication
System (Building-housing Energy-efficiency Labeling System).
In October 2013, the Ministry of Land, Infrastructure, Transport and Tourism established the"Guidelines for Evaluation of Energy Conservation Performance of Non-Residential Buildings(2013)," which was launched by a third-party organization to properly evaluate and indicate theenergy conservation performance of non-residential buildings based on these guidelines. Later, inJuly 2015, the Law Concerning Improvement of Energy Consumption Performance of Buildings(Building Energy Conservation Law) was promulgated, and Article 7 stipulated the obligation ofresidential builders and other businesses selling or leasing buildings to make efforts to indicate
the energy consumption performance of buildings. In accordance with the enforcement of the
Building Energy Conservation Law, the BELS is positioned as a third-party certification system
under the guidelines for labeling energy conservation performance based on Article 7 of the samelaw. From April 2016, new housing was added to the evaluation target, and currently it covers all
new and existing buildings.
Evaluation results are expressed as star values based on the achievement values of the energy
conservation standards.
These are represented by 5 stars, 4 stars, 3 stars (guidance criteria), 2 stars (energy conservation
criteria), and 1 star (existing energy conservation criteria).
② LEED
This is an environmental performance assessment system for buildings and urban environments
development and operated by the Green Building Council of the United States (USGBC), a nonprofit organization. As of 2019, there were buildings certified in more than 160 countries orregions.
The LEED is an acronym for Leadership in Energy and Environment Design, which was
published in 1996 and updated every few years.
There are 5 types of certification: BD+C (Building Design and Construction), ID+C (Interior
Design and Construction), O+M (Operation and Maintenance of Existing Buildings), ND(Neighborhood Development), and HOMES (Home).
Certification levels are represented by the sum of the points obtained for each item, and fromabove are Platinum (80 points or more), Gold (60-79 points), Silver (50-59 points), and Certified(40-49 points).

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Evaluation Phase 2: Management, Operations and Transparency Evaluation
Based on the current situation described below and JCR's evaluation of the subject, JCR
evaluated that the management and operational system had been well developed, thattransparency was very high, and that it was fully expected that the project would be
implemented as planned and that the proceeds would be adequately allocated. In Phase 2, JCR
evaluated "m1" as the highest level in terms of management, operation and transparency.

1 . Validity and Transparency of the Criteria for Selection of use of proceeds andtheir Processes(1) JCR's key consideration in this factor
In this section, JCR confirms that the objectives to be achieved through the green bond, the criteria for
selecting green projects, the appropriateness of the process, and the series of processes are appropriately
disclosed to investors.

(2) Current status of evaluation targets and JCR’s evaluationa.

TargetIn FY2014, the Company formulated the “GReeN PR!DE 100”, long-term management framework forthe 100th anniversary of the Company's establishment in 2023. The long-term vision of the Group is tobecome "a company group continuously meeting customers expectation and always relied and trusted bythem," “an environmental company whose presence is admired in the global market," and "anenvironmental solution professional contributing to the global environment." In addition, the Growth
Strategy Roadmap aims to "Contributing to shifting the world towards a decarbonized society throughenvironmental engineering." The proceeds are to be used for the purpose of financing the construction of
the Innovation Center and are consistent with the Company’s objectives.

b. Selection criteria
The Company qualifies the Innovation Center as green buildings as it aims ZEB and ZEB Ready. JCR
evaluates the selection criteria have high environmental improvement effect as detailed in Evaluation
Phase 1.
c.

Processes
The selection of uses of proceeds and the issuance of the Bonds are drafted by the Company’s
Accounting & Finance Division and determined by resolution of the Board of Directors. In addition, theCorporate Planning Division is involved as a specialized department in the selection of projects. JCR
assesses that management is properly involved in the selection process for both the selection of the use ofproceeds and the issuance of the Bonds.
The above objectives, selection criteria and processes will be disclosed in the Company’s press releases
and debt IR in order to ensure transparency for investors.

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2. Appropriateness and Transparency of Management of the Proceeds(1) JCR's key consideration in this factor
It is usually assumed that the management of the proceeds varies widely depending on the issuer. JCR
confirms whether the proceeds are securely appropriated to the green project and whether a mechanism andinternal system are in place to enable easy tracking and management of the appropriation of funds.
JCR also emphasizes evaluating whether proceeds are scheduled to be used for green projects at an early stage,
and the management and operation methods of unallocated funds.

(2) Current status of evaluation targets and JCR’s evaluation
The entire amount of the proceeds will be appropriated to the new investment for the construction of theInnovation Center mentioned above in Phase 1 and will not be appropriated for any other purposes. The
proceeds will be managed in cash or cash equivalents and will be fully appropriated by March 2020. If not
fully appropriated by March 2020, the Company plans to explain how to manage the proceeds that have notbeen appropriated in its press releases, etc.
The status of appropriation of the proceeds shall be tracked by the Accounting & Finance Division using aninternal system. The director of the Accounting & Finance Division decides on the decision-making for the
execution of proceeds each time. The management of proceeds is subject to internal and external audits.
Based on the above, JCR evaluates the appropriateness and transparency of the Company’s cash management.

3. Reporting(1) JCR's key consideration in this factor
In this section, JCR evaluates whether the disclosure system for investors before and after the issuance ofgreen bonds is planned in detail and in an effective manner at the time of the issuance of green bonds.

(2) Current status of evaluation targets and JCR's evaluation
a. Reporting on the appropriation of funds
The Company intends to disclose on its website an overview of the project and the amount appropriatedfor the project and the amount not appropriated for the project, as necessary, until the entire amount of
the proceeds has been appropriated and in the event of a significant change in circumstances even after
all of the proceeds have been appropriated. The entire amount of the proceeds will be appropriated byMarch 2020.
b. Reporting on environmental improvement effects
The Company plans to disclose on its website the following indicators that show the effect ofenvironmental improvement once a year until the redemption of the Bonds. The Company plans todisclose the progress of the project until its completion.
・ Progress of each eligible project (until completion)
・ Status of acquisition of environmental certification
・ Management report after completion of the Innovation Center (evaluation of energy consumption,
manufacturing volume, CO2 emission reductions, and ZEB/ZEB Ready achievement status by fundedfacilities, etc.)
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JCR evaluates that the reporting items and the frequency of disclosure are appropriately set as indicatorsof the environmental improvement effects of buildings.
The Company plans to receive an annual third-party review by JCR until the redemption date.

4.

Organization's Environmental Activities(1) JCR's key consideration in this factor
In this section, JCR evaluates whether the issuer's management positions environmental issues as a highpriority management issue, and whether the green bond policy, process and the criteria for selecting green
projects are clearly defined through the establishment of a department specializing in the environmental fieldor through the assistance of external organizations.

(2) Current status of evaluation targets and JCR's evaluation
The Company and its group companies provide one-stop services, including design, construction, maintenance,and renovation, with a focus on air conditioning equipment construction. With the purpose of "Contributing toshifting the world towards a decarbonized society through environmental engineering," the Company isstriving to create the main social values it provides, such as the latest energy-saving operation using advanced
equipment management technical cultivated over many years of experience and the creation of comfortable
spaces for people. Technologies that contribute to the creation of social value are collectively referred to as"Green Air®" and are planned to be introduced in many of the Innovation Centers for which the proceeds are
currently being used.
The Company has established CSR Activity rules and other regulations, established the CSR Management
Committee, chaired by the General Manager of the Corporate Strategy Headquarters, and the Group CSR
Promotion Committee, which consists of the persons in charge of CSR at the Company and Group companies.
In these ways, the Company has established a system to promote CSR management on a group-wide basis.
Based on this system, the Company sets the materiality of its CSR activities, including "further improvementof customer satisfaction" and "contribute to environmental conservation" with the theme of addressing
environmental issues.
With regard to environmental issues, the Company has formulated the Basic Policy on the Environment basedon the basic concept of “Contribute to ‘environmental conservation while ensuring the sustainable
development of society’ by making full use of environmental preservation technologies and our corporate
capabilities.”
Basic Policy on the Environment1) Promote the effective use of energy and resources
2) Promote the development and utilization of technologies that reduce the load on the environment3) Improve environmental awareness among executives and employees and participate inenvironmental conservation activities
4) In order to promote these, establish systems for environmental conservation and aim for continuous
maintenance and improvement

The activities are set as part of the CSR activity plan in line with the objectives of "establishment of a lowcarbon society," "contribution to a society harmonized with nature," and "contribution to creating a recyclingoriented society." Activities are compiled annually and published on its website and in its corporate reports,
which are used in the development of activity targets for the next fiscal year. The Company has a system in

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place to obtain objective data on quantitative measurement of environmental activities by utilizing its groupcompanies.
The construction of the Innovation Center is led by a project team of the Company’s internal experts. Detailed
specifications are determined by incorporating the opinions of external experts and are promoted by collecting
and promoting wide-ranging knowledge as well as cross-sectional networks within the Company.
In July 2018, the Company signed the United Nations Global Compact, announcing that it will be involved inefforts to realize sustainable growth, including environmental issues, from a global perspective.
JCR evaluates the Company considers environmental issues as a material and highly prioritized matter in its
management.
■Evaluation Results
Based on the JCR Green Finance Evaluation Methodology, JCR assigns "g1" for the preliminary evaluation ofthe "Greenness Evaluation (use of proceeds)" and "m1" for the preliminary evaluation of the "Management,
Operation and Transparency Evaluation." As a result, the JCR assigns "Green 1" for overall "JCR Green Bond
Preliminary Evaluation." The Bonds are considered to meet the standards for the items required under theGreen Bond Principles and the Ministry of the Environment's Green Bond Guidelines.
[JCR Green Bond Evaluation Matrix]
Management, Operation and Transparency Evaluation

Greenness Evaluation

m1

m2

m3

m4

m5

g1

Green 1

Green 2

Green 3

Green 4

Green 5g2

Green 2

Green 2

Green 3

Green 4

Green 5

g3

Green 3

Green 3

Green 4

Green 5

g4

Green 4

Green 4

Green 5

g5

Green 5

Green 5

Not
qualified

Not

Not

qualifiedqualified

Not

Not

Not

qualifiedqualifiedqualified■Scope of Evaluation
Issuer: Takasago Thermal Engineering Co., Ltd. (Securities Code: 1969)
Assignment
Subject

3rd Series of Unsecured Bonds(with limited inter-bond paripassu rider)(Takasago Thermal Green Bond)

Issuance Amount

JPY 5 billion

Issue Date

July 2019(scheduled)

Redemption Date

Interest Rate

July 2026(scheduled)

JCR Green Bond Evaluation:Green1
To be
Greenness Evaluation:g1
determined Management, Operation, andTransparency Evaluation :m1

Preliminary evaluation(Responsible analysts for this evaluation) Rieko Kikuchi and Hiroya Kakiuchi

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Important explanation of this Green Bond Evaluation
1. Assumptions, Significance, and Limitations of JCR Green Bond Evaluation
JCR Green Bond Evaluation, which is granted and provided by the Japan Credit Rating Agency (JCR), is a comprehensive
expression of JCR's current opinion on the extent to which the funds procured from the issuance of green bonds, which are
subject to evaluation, are allocated to green projects defined by JCR and the extent to which the management, operation
system, and transparency of the use of green bonds are ensured. JCR Green Bond Evaluation does not fully indicate theextent to which the funds procured from such green bonds are allocated and the management, operation, and transparency of
the use of the funds are ensured.
JCR Green Bond Evaluation assesses the plan or status of the appropriation of funds at the time of the green bond issuanceplan or at the time of issuance, and does not guarantee the status of the appropriation of funds in the future. In addition, JCR
Green Bond Evaluation does not prove the environmental effects of green bonds and is not responsible for theirenvironmental effects. JCR confirms that the effects of the funds procured from the issuance of green bonds on theenvironment are measured quantitatively and qualitatively by the issuer or by a third party requested by the issuer, but inprinciple it does not directly measure the effects.
2. Method used to conduct this evaluation
The methods used in this evaluation are listed on JCR's website (Sustainable Finance & ESG in https://www.jcr.co.jp/en)) as
JCR Green Finance Evaluation Methodology.
3. Relationship with Acts Concerning Credit Rating Business
JCR Green Bond Evaluation is determined and provided by JCR as a related business, which is different from the activities
related to the credit rating business.
4. Relationship with Credit Ratings
The evaluation differs from the credit rating and does not promise to provide or make available for inspection apredetermined credit rating.
5. Third-Party Evaluation of JCR Green Bond
There is no conflict of interest related to capital or human resources relationships between the subject of this evaluation and
JCR.
■Disclaimers

The information contained in this document has been obtained by JCR from the Issuer and from accurate and reliable sources. Provided, however, that suchinformation may be erroneous due to human, mechanical or other reasons. Accordingly, JCR makes no representation or warranty, express or implied, as to theaccuracy, results, accuracy, timeliness, completeness, marketability, or fitness for a particular purpose of such information, and JCR assumes no responsibility forany error, omission, or result of using such information. In no event shall JCR be liable for any special, indirect, incidental or consequential damages of any kind,including opportunity loss, monetary loss, which may arise from any use of such information, whether contractual, tort, negligence or other cause of liability, andwhether or not such damages are foreseeable or unforeseeable. The JCR Green Bond Evaluation does not express any opinion on the various risks (credit risk,
price fluctuation risk, market liquidity risk, price fluctuation risk, etc.) associated with the green bond subject to the assessment. The JCR Green Bond Evaluation
is a comprehensive statement of opinion at the present time of the JCR and is not a statement of fact and does not make any recommendations regarding risk
judgment or the decision to purchase, sell or hold individual bonds, commercial paper, etc. JCR Green Bond Evaluations may be changed, suspended, orwithdrawn due to changes in information, lack of information, or other reasons. All rights to this document, including data from the JCR Green Bond Assessment,
are held by JCR. Reproduction, adaptation, modification or alteration of this document, in whole or in part, including data from the JCR Green Bond Assessment,
without the permission of JCR is prohibited.

■Glossary

JCR Green Bond Evaluation: JCR Green Bond Evaluation evaluates the extent to which the funds procured from the Green bond are allocated to the Green
Project as defined by JCR, and the extent to which the management, operation, and transparency of the Green Loan are ensured. Evaluations are graded on ascale of 5, beginning with the top, using the Green1, Green2, Green3, Green4, and Green5 symbols.

■Status of registration as an external assessor of green finance・ Ministry of the Environment's external green bond reviewer registration
・ ICMA (registered as an observer with the International Capital Markets Association)■Status of registration as a credit rating agency, etc.
・ Credit Rating Agency: the Commissioner of the Financial Services Agency (Rating) No.1
・ EU Certified Credit Rating Agency
・ NRSRO: JCR has registered with the following four of the five credit rating classes of the Securities and Exchange Commission's NRSRO(Nationally
Recognized Statistical Rating Organization. (1)Financial institutions, broker dealers, (2) insurance companies, (3) general business corporations, and (4)government and local governments. If the disclosure is subject to Section 17g-7(a) of the Securities and Exchange Commission Rule, such disclosure is
attached to the news releases posted on the JCR website (http://www.jcr.co.jp/en/).

■For further information, contact

Information Service Dept. TEL: 03-3544-7013 FAX: 03-3544-7026

Japan Credit Rating Agency, Ltd.
Jiji Press Building, 5-15-8 Ginza, Chuo-ku, Tokyo 104-0061, Japan
Tel. +81 3 3544 7013, Fax. +81 3 3544 7026

Copyright © Japan Credit Rating Agency, Ltd. All rights reserved.

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