19-D-0366

July 17, 2019
Green Bond Evaluation b y Japan Credit Rating Agenc y, Ltd.
Japan Credit Rating Agency, Ltd. (JCR) announces the following Green Bond Evaluation Results.

JCR Assigned Green 1 to the Bonds of
MEIDENSHA CORPORATION
Subject:

MEIDENSHA CORPORATION 2nd unsecured corporate bonds (limited tocorporate bonds with a special agreement on the same priority) (Green Bond)

Type

:

Bonds

Issue Amount:JPY 6 billion

Interest Rate:

0.260%

Issue Date:

July 23, 2019

Redemption Date:

July 23, 2024

Method of
Repayment:

BulletUse of proceeds:

New construction of manufacturing facilities, reconstruction of existingbuildings, construction of mass production lines, expansion of productionlines of motors and inverters for electric vehicles (EV/PHV/HV)<Green Bond Evaluation Results>
Overall evaluation

Green 1

Evaluation of Greenness(use of proceeds)
Evaluation on Management,
Operation and Transparency

g1
m1

Chapter 1: Evaluation Overview
MEIDENSHA CORPORATION (Meidensha) is a mid-sized heavy electric equipment manufacturer founded in
1897. The company has four businesses: social infrastructure (mainly water treatment facilities and heavy electric
equipment for electric power companies), industrial systems (mainly electric motor and inverter equipment for electricvehicles and semiconductor manufacturing equipment), maintenance and services (mainly maintenance and inspectionof delivered products), and real estate.
Bonds to be issued by the Shelf Registration are used for new construction of manufacturing facilities, renovationof existing buildings, construction of mass production lines, expansion of production lines of motors and inverters forelectric vehicles (EV), plug-in hybrid vehicles(PHV) and hybrid vehicles(HV), (hereinafter, electric vehicles includes
1/1
https://www.jcr.co.jp/

the above three types of vehicles). JCR confirmed the followings; (i) all of these investments are related to the
manufacture of electric vehicle components, (ii) they are highly effective in improving the environment, (iii) theseprojects are unlikely to have serious negative environmental impacts that outweigh the environmental improvement
effects and (iv) Meidensha takes necessary measures to minimize negative effects. Therefore, JCR evaluates thisproject as a green project that greatly contributes to reduce CO2 emissions. It confirms that the management andoperation system for the Green Project, which will be used for the proceeds of the bonds, was established and highly
transparent, and that Meidensha is tackling environmental issues with concrete goals.
Based on the JCR Green Bond Evaluation Method, JCR assigns "g1" for "Greenness Evaluation (Use of Proceeds)" and "m1" for "Management, Operation and Transparency Evaluation". Consequently, JCR assigns "Green1" as an
overall evaluation result to the bonds. Detailed evaluation results are discussed in detail in the next chapter. The Bonds
are considered to meet the standards for the items required by the Green Bond Principles and the Green Bond
Guideline of the Ministry of the Environment of Japan.12

Chapter 2: Current Status of the project on each evaluation factor and JCR's
evaluations
Evaluation Phase 1: Greenness Evaluation
JCR assigns "g1", the highest grade, to "Evaluation Phase 1: Greenness Evaluation".
Rationale: 100% use of proceeds of the bond will be allocated to a green project, considering thefactors described below.
(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 in chargeof 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 the environment. Finally, JCR
confirms consistency with the Sustainable Development Goals (SDGs).

(2) Current status of evaluation targets and JCR evaluation
Overview of Use of Proceedsa.

On the environmental improvement effects of the projecti. 100% of the proceeds are allocated to manufacture electric vehicle components, which is expected tocontribute to reduce CO2 emissions.
The scope of the proceeds is as follows. In this report, plug-in hybrid vehicles (PHV) and hybrid vehicles(HV) are included in electric vehicles.

1
2

ICMA(International Capital Market Association) Green Bond Principles 2018
Ministry of the Environment Green Bond Guidelines 20172/2
https://www.jcr.co.jp/enNagoya Works: Renovation of existing buildings and introduction of new
facilities
Location
496 Ittangosewari, Nishibiwajimacho, Kiyosu City,
Aichi Prefecture
Parts to be produced Inverter-Integrated Motor Units for EVs
Start of operations
Scheduled for November 2019
Total floor space
4,620m 2
Production capacity Maximum annual production of 170,000 units
Kofu Meidensha Electric Mfg. Co., Ltd.: Construction of new building
and introduction of new facilities
Location
825 Nakadate, Chuo City, Yamanashi Prefecture
Parts to be produced Motors for EVs
Start of operations
Scheduled for November 2019
Total floor space
2,660m 2
Production capacity Maximum annual production of 170,000 units
Numazu Works: Expansion of facilities
Location
515 Kaminakamizo, Higashimakado, Numazu City,
Shizuoka Prefecture
Parts to be produced Inverters for electric vehicles
Start of operation
Scheduled for April 2019
Total floor space
240m 2
Production capacity Maximum annual production of 120,000 units(Source: Meidensha website and interviews)

According to the "Low Carbon Land Transport and the Climate Bond Standard" (CBS) published by
Climate Bonds Initiative (CBI), an international initiative, facilities related to the manufacture of components
for private EVs are eligible for green projects regardless of vehicle type and emissions. It also states thatfacilities for PHVs and HVs are eligible depending on the amount of emission reductions. For this reason,
JCR examines the greenness of PHVs and HVs in which Meidensha's products are installed.
In the CBS, CBI sets a limit on CO2 emissions for passenger vehicles by 2050 to achieve the 2°C target set
in the Paris Agreement. Meidensha calculates the CO2 emissions of the current models (HVs) of the sameclass as those of automobiles equipped with its products, and confirms that the calculated emission amounts
does not exceed the upper limit set by the CBS until the redemption of the Green Bonds. The above figures
are calculated by the Environment Management Program of Administration Division, which has expertise in
the environmental field in Meidensha, using highly reliable data such as the government announced values, so
the calculation results are considered reasonable. In addition, although CO2 emissions of PHVs fluctuate
greatly depending on the driving condition, it is unlikely that CO2 emissions will exceed HVs because theratio of PHVs traveling using electricity as an energy source is generally higher than that of HVs. According
to Meidensha's calculations, CO2 reductions from this project are expected to exceed approximately 160,000
tons. Based on the above, JCR evaluates that this project has a high degree of greenness.
In calculating CO2 emissions, CBS states that only CO2 emitted directly from vehicles through the use ofgasoline fuels is taken into account, and this concept is referred to as "Tank-to-Wheel." On the other hand,
there is a concept called "Well-to-Wheel" that should be evaluated not only in terms of direct emissions fromautomobiles, but also in terms of processes such as the production of gasoline and electricity. Meidensha also

3/3
https://www.jcr.co.jp/en

calculated the CO2 emissions of EVs in accordance with the latter concept, and confirmed that the calculated
value does not exceed the upper limit of emissions specified by the CBS.
ii. The use of proceeds falls under the category of "clean transportation" as defined in the Green Bond
Principles or the Ministry of the Environment's Green Bond Guidelines.
The Ministry of the Environment's Green Bond Guidelines cites "development of low-pollution vehicles
such as electric vehicles and hydrogen vehicles" as a specific example of clean transportation projects.
According to the Ministry of Economy, Trade and Industry, Japan is one of the most advanced countries in
the world in EVs (about 30% of new vehicle sales are next-generation vehicles). In particular, Japan ranks
first in the world in terms of the academic level, technological capabilities, industries, and human resources
related to electric power, including batteries. According to the "Growth Strategy 2018" approved by the
Cabinet in June 2018, the company intends to increase the ratio of next-generation vehicles, mainly EVs,
PHVs and HVs, from 36.4% in FY17 to 50-70% in FY30.3
Electric vehicles are also associated with the Net ZEH (ZEH), a residence that the amount of electricity
consumed is nearly equal to that produced on its own. As electric vehicles also play a role as large batteries,
surplus electricity generated by solar panels during the day can be stored in electric vehicles, which can beused as a source of electricity for household use at night, thereby reducing power purchases from externalsources. The Government has set a goal in the Strategic Energy Plan to achieve ZEH on average for new
housing by 2030. With the spread of ZEH, it is expected that the degree to which electric vehicles contributeto energy conservation in ordinary households will increase.
Meidensha's initiatives are in line with the above-mentioned Japanese policy on energy conservation andnew energy.

b. Negative impact on the environment
Negative effects on the environment related to this project may include (i) increased use of electricity due
to new facilities and expansion of facilities; (ii) increased waste due to increased production of products; and(iii) increased use of hazardous chemical substances in the manufacturing stage.
With regard to (i), Meidensha plans to invest in facilities to reduce environmental impact at the
manufacturing stage by adopting solar power generation equipment, highly efficient lighting and air
conditioning equipment, etc. As for the increase of the waste described in (ii), the 3R of waste (reduction,
reuse, and recycling) is being promoted, and the policy is to promote zero waste emissions in the production
activities at the target sites of this project. In FY2017, the company-wide recycling rate was 99.1%. With
regard to (iii), JCR confirms that appropriate measures are being implemented to reduce the environmental
impact through the interview with the Company.4
Meidensha's offices and affiliated companies have set voluntary standards that are stricter than the legal
regulations, and are in a system to ensure compliance with the laws and regulations. Based on the above, JCR
evaluates that the project is unlikely to have a negative effect that exceeds the environmental improvement
effect, and that measures are being taken to reduce the negative effect.
3

S ou rc e: Mini st ry of Ec on om y, Trad e a nd Indu st ry In t eri m R ep ort b y St ra t egi c C om mi ss i on for th e New E ra of
Aut om ob i les (Au gus t 31 , 201 8 )4M eid en Group ' s Zero E mi ss i on s Defini ti on : To a chi eve a n on -rec yc lin g rat e of les s th an 1.0% of th e t ota l volum e ofwa st e (in c lud in g indu st ri a l wa st e, gen era l wa s t e, and sa leab le wa st e, b ut exc ludin g c on st ru cti on s lud ge, etc . ).

4/4
https://www.jcr.co.jp/en

c. Consistency with SDGs goals and Targets
Green projects subject to the proceeds are classified as clean transportation, contributing to the following
SDGs objectives and targets in light of ICMA's SDGs mappings:
Goal 7: Affordable and clean energy
Target 7.a. By 2030, enhance international cooperation to facilitate access to clean energy
research and technology, including renewable energy, energy efficiency and advanced andcleaner fossil-fuel technology, and promote investment in energy infrastructure and clean
energy technology.
Goal 9: Industry, innovation and infrastructure
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.
Goal 11: Sustainable cities and communities
Target 11.3. By 2030, enhance inclusive and sustainable urbanization and capacity forparticipatory, integrated and sustainable human settlement planning and management in all
countries.

5/5
https://www.jcr.co.jp/en

Evaluation P hase 2: Evaluation on Management, Operational s ystema n d Tr a n s p a r e n c y
JCR assigns "m1", the highest rating on JCR Evaluation Phase 2: Evaluation on Management,
Operation and Transparency.
Rationale: These projects will be allocated the funding and implemented the businesses asplanned through a firmly equipped management and operation system and high transparency as
described below.

1 . A p p r o p r i a t e n e s s a n d Tr a n s p a r e n c y c o n c e r n i n g s e l e c t i o n s t a n d a r d a n d
processes of the use of proceeds(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 evaluationa.

Goal
In promoting environmental management, Meiden Group has formulated an "Environmental Vision" toshow the ideal state and direction of initiatives. Meidensha sets four goals in its Environmental Vision: (1)Mitigating Climate Change; (2) Conserving Resources (Building a Recycling Society); (3) Conserving
biodiversity; and (4) Foster a corporate culture that highly values the environment. The project covered bythis case is considered to fall under (1).
The above Environmental Vision is shown as a concrete action plan in the Medium-Term Management
Plan 2020, which started in FY2018. Some of these action plans are quantitatively shown, such as "1%
reduction in total greenhouse gas emissions from business activities by FY2017 compared to FY2016" and"800,000 tons of CO2 reduction through environmental contribution projects in FY2017." Progress andevaluation of targets are disclosed in Meidensha's CSR Report every year.
In the long term, Meiden Group aims to reduce greenhouse gas emissions from its business activities by
30% compared to FY2017 levels by FY2030. This objective has been set in consideration of SBT (Science
Based Target) standards to be consistent with the 2°C target agreed upon in the Paris Agreement.

b. Selection standard
Meidensha is investing in new construction, renovation of existing buildings, construction of mass
production lines, and expansion of production lines for motors and inverters for electric vehicles(EV/PHV/HV) and meets the Ministry of the Environment's Green Bond Guidelines, the ICMA's Green Bond
Principles and the CBI's Climate Bond Standards. This project meets the standards for "Clean Transportation"in the Green Bond Guidelines, "Clean Transportation" in the Green Bond Principles, and "TRANSPORT(Vehicles)" in the Climate Bond Standards, and projects have been selected in accordance with the selection
criteria.
c. Process
When selecting a project, Accounting & Financing Group Financing Division of Meidensha verifies
whether the candidate project meets the selection criteria or not. Subsequently, the final decision is made by

6/6
https://www.jcr.co.jp/enthe CFO after consultation with the relevant departments, such as the Environment Management Program,which has expertise in the environmental field in Meidensha.
JCR evaluates that the selection criteria are conducted with validity because the roles of each organization
are clearly defined and the selection criteria are conducted through departments with expertise in thedecision-making process.
These selection criteria and the selection and evaluation processes are scheduled to be published in the
Shelf Registration Statement and the report issued by third parties, ensuring transparency for investors.

2 . A p p r o p r i a t e n e s s a n d Tr a n s p a r e n c y o f m a n a g e m e n t o f t h e p r o c e e d s(1) JCR's key consideration in this factor
The management method of the proceeds is usually assumed to be diverse by the issuer. JCR assesses whether
the proceeds firmly allocated to the green project, the project have internal systems to easily track the allocationof the proceeds and the money funded by the bond will be allocated to the green project at once.
JCR also considers the evaluation of asset management of unallocated money. It also attaches importance toevaluating the management and operation of the unallocated funds, as well as to confirming that the funds
procured from the bond will be allocated to the green projects at an early stage.

(2) Current status of evaluation targets and JCR evaluationa. The use of proceeds will be fully allocated to new construction, renovation of existing buildings,
construction of mass production lines, and expansion of production lines for motors and inverters forelectric vehicles (EV/PHV/HV). In addition, all of the above proceeds are scheduled to be disbursed within
one year of issuance.
b. Accounting & Financing Group Financing Division of Meidensha manages the proceeds using a dedicatedform. Meidensha's policy is to monitor the budget and actual expenditures quarterly in accordance with the
cash management flow stipulated by Meidensha to prevent proceeds from being allocated to non-eligible
projects.
c. The above proceeds allocation status is approved by Financing Division's General Manager on a quarterly
basis, and internal controls are ensured. Meidensha has the policy to preserve documents related to proceeds
management in accordance with accounting regulations related to the scope and preservation of accounting
documents specified by Meidensha, and to manage them by the Accounting Document Retention Duration
Table.
d. The Company's policy is to invest unallocated proceeds as cash or cash equivalents.
JCR evaluates that it is secured that the proceeds will be allocated to green project, the proceeds are managed
in an appropriate manner internally, an internal control system is in place, and there are no particular concerns
about the operation of unallocated proceeds.

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

7/7
https://www.jcr.co.jp/en

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

Reporting on the proceeds allocation
Meidensha's policy is to disclose the allocation status once a year on the Meidensha website until the fullamount of proceeds is allocated for the Green Project. The Disclosure will include (i) the amount of proceeds
which has been already allocated; (ii) the estimated amount or percentage of unallocated proceeds, the timingof allocation and the management method for the unallocated period; and (iii) the estimated amount orpercentage in cases where the proceeds are allocated for the refinancing. Meidensha plans to fully allocate
proceeds within one year of issuance, but it will disclose in a timely manner if there is a material change in
the allocation plan or if there is a material change in the proceeds status after the allocation.

b. Reporting on environmental improvement effects
Meidensha's policy is to disclose the progress and environmental improvement effects of the target project
once a year on the Meidensha website until the Green Bond is redeemed. The effects of environmental
improvements are expected to be quantitatively shown in terms of the CO2 emissions reduced by the Green
Project. The above environmental improvement effects will be calculated by Environmental Management
Program in Meidensha, and JCR confirmed that the calculation method is appropriate.
Meidensha plans to undergo a third-party review of JCR once a year until the Green Bond is redeemed.

4. Organization's environmental activities(1) JCR's key consideration in this factor
This section evaluates whether the management of the issuer considers environmental issues to be a highpriority issue for management, whether the green bond issuance policy, process, and green project selection
criteria are clearly positioned through the establishment of a department specializing in environmental issues orcooperation with external organizations, etc.

(2) Current status of evaluation targets and JCR evaluation
At Meidensha, the President makes the following top commitments regarding environmental initiatives.
Regarding the "environment" aspect, we are promoting environmental management strategically, contributing
to society in terms of the environment and energy through our products and services, and working to reduce theenvironmental impact of our business activities. "Meiden Group's corporate philosophy is to "illuminating a more affluent tomorrow". This commitment reflects
the Group's strong belief that "We seek to delight customers by offering high quality products and services to help
solve their problems. Through these business activities, we aim to fulfill our corporate social responsibility (CSR)
by proactively solving global environmental problems and other social issues and helping achieve a more affluent
future. We must continually tackle these challenges". The implementation of this project is an effort to realize theabove-mentioned top commitment and is directly related to the corporate philosophy. Based on the above, JCR
evaluates Meiden Group identifies the contribution to environmental issues as a prioritized management issue.
Meidensha has established a system for promoting environmental management throughout the entire
organization. For example, the Company has appointed an executive officer in charge of environmental matters tosupervise the environmental management of the entire Group. In addition, a company-wide internal
environmental audit team has been established as an independent organization to audit and makerecommendations on the status of the initiatives of each department. In addition, all domestic and overseas
8/8
https://www.jcr.co.jp/en

production bases have obtained ISO14001 certification, which is an international standard for environmental
management systems.
As part of its efforts to address climate change, Meidensha has set a medium-to-long term management targetof reducing greenhouse gas emissions from business activities by 30% compared to FY17 by FY 2030. Thisobjective has been set to be consistent with the 2°C target agreed upon in the Paris Agreement. Every year,
Meidensha discloses actual greenhouse gas emissions as part of its business activities in the CSR Report, enabling
investors to quantitatively confirm the amount of reductions. According to this report, Meidensha's CO2 emissions
in Japan in FY2017 declined for the fourth consecutive year to 366.46 million tons (down 4.5% from the previousyear), and emissions are steadily declining. In addition, the company discloses the amount of CO2 emissions
reductions expected from sales of environmentally friendly products, centered on components for electric vehicles
and renewable energy-related products. These environmental performance data are certified by Bureau Veritas
Japan, a third-party certification body, as accurate and reliable data. Based on the above, JCR believes that
Meidensha is making serious efforts to realize a sustainable society.
As detailed in Chapter 2, Evaluation Phase 2, Section 1 (2).c., departments specializing in the environmental
field have been clarified, and project evaluation and selection criteria and selection processes have been clarified.
■Evaluation result
Based on JCR Green Finance Evaluation Methodology, JCR assigns "g1" for the evaluation of the "Greenness
Evaluation (use of proceeds)" and "m1" for the evaluation of the "Evaluation on Management, Operating System
and Transparency." As a result, JCR assigns "Green 1" for overall "JCR Green Bond Evaluation." The Bonds are
considered to meet the standards for the items required by the Green Bond Principles and the Green Bond Guidelineof the Ministry of the Environment of Japan.

[JCR Green Bonds Evaluation Matrix]
Management, Operation, and Transparency

Greenness

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■ Evaluation Subject
Issuer: MEIDENSHA CORPORATION (Security Code: 6508)[Assignment]
Subject

2nd Unsecured Corporate
Bonds (Green Bond)

Issue
AmountJPY 6
billionIssue Date

Redemption Date

July 23, 2019

July 23, 2024

Interest Rate

Evaluation

0.260%JCR Green Bond Evaluation: Green1
Greenness Evaluation: g1
Management, Operations andTransparency Evaluation: m1

Sustainable Finance Analyst: Atsuko Kajiwara and Akihiro Kondo
9/9
https://www.jcr.co.jp/en

Important explanation of the Green Bond Evaluation
1. Assumptions, Significance, and Limitations of JCR Green Bond Evaluation
JCR Green Bond Evaluation, which is granted and provided by 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, andtransparency of the use of green bonds are ensured. JCR Green Bond Evaluation does not fully indicate the extent to which thefunds 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 their environmental
effects. JCR confirms that the effects of the funds procured from the issuance of green bonds on the environment are measured
quantitatively and qualitatively by the borrower or by a third party requested by the borrower, but in principle it does not directly
measure the effects.
2. Methods used in the conduct of this evaluation
The methods used in this evaluation are listed on JCR website (Green Finance & ESG in https://www.jcr.co.jp/en)) as JCR
Green Finance Evaluation Method.
3. Relationship with Acts Related to 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 character of JCR
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. JCR Green Bond Evaluation does not express any opinion on the various risks (credit risk, pricefluctuation risk, market liquidity risk, etc.) associated with the green bond, which is the subject to the evaluation. JCR Green Bond Evaluation is a comprehensive
statement of opinion at the present time of JCR and is not a statement of fact and does not make any recommendations regarding risk judgment or the decision topurchase, sell or hold individual bonds, commercial paper, etc. JCR Green Bond Evaluations may be changed, suspended, or withdrawn due to changes in
information, lack of information, or other reasons. All rights to this document, including data from the JCR Green Bond Evaluation, are held by JCR. Reproduction,
adaptation, modification or alteration of this document, in whole or in part, including data from the JCR Green Bond Evaluation, 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 a scale of 5,
beginning with the top, using the Green1, Green2, Green3, Green4, and Green5 symbols.

■Status of registration as an external reviewer 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 RecognizedStatistical 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 (https://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.

10/10
https://www.jcr.co.jp/en