(Reference Translation)

Tokyo Stock Exchange Index Guidebook（Tokyo Stock Exchange Dividend Focus 100 Index）

December 25, 2020
Tokyo Stock Exchange, Inc.

Published December 25, 2020
DISCLAIMER: This translation may be used for reference purposes only. This English version is not an
official translation of the original Japanese document. In cases where any differences occur between the
English version and the original Japanese version, the Japanese version shall prevail. This translation is
subject to change without notice. Tokyo Stock Exchange, Inc., Japan Exchange Group, Inc., Osaka
Securities Exchange Co., Ltd., Tokyo Stock Exchange Regulation and/or their affiliates shall individually or
jointly accept no responsibility or liability for damage or loss caused by any error, inaccuracy,
misunderstanding, or changes with regard to this translation.

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Copyright © 2018- by Tokyo Stock Exchange, Inc. All rights reserved

Content
Record of Changes................................................................................................................. 3
Introduction........................................................................................................................... 4
Ⅰ. Tokyo Stock Exchange Dividend Focus 100 Index Overview ................................. 4
Ⅱ. Index Calculation.......................................................................................................... 4
1.

Outline ....................................................................................................................... 4

2.

Formula ..................................................................................................................... 5

3.

Stock Price Used for Calculation ............................................................................. 5

4.

Number of Shares Used for Index Calculation....................................................... 55.

Constituent selection ................................................................................................ 6

6. Calculation of coefficients for Tokyo Stock Exchange Dividend Focus 100 Index . 9Ⅲ.

Adjustment of Base Market Value............................................................................11

1.

Events which require adjustments........................................................................ 12

2.

Adjustment Method ................................................................................................ 16

Ⅳ. Other............................................................................................................................ 19
1.

Publication/Dissemination of Index Data ............................................................. 19

2.

Licensing ................................................................................................................. 19

3.

Contact..................................................................................................................... 19

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Copyright © 2018- by Tokyo Stock Exchange, Inc. All rights reserved

Record of Changes
DATE

Changes

2018/7/23* First Edition

2019/8/30* Modified an error

2020/3/30*Clarification of the treatment of issues to be delisted due to stock transfer,etc. and cases where less than 100 issues are selected at the periodic
review.
*Revised the date for adjusting base market value following the shorteningof stock settlement cycle to T+2

2020/6/30

Revision to bring forward the date for minor adjustments related to
ex-dividend

2020/12/25

Clarification of the treatment of section transfers, etc.

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Introduction
・ Tokyo Stock Exchange, Inc. (TSE) calculates the Tokyo Stock Exchange Dividend
Focus 100 Index, as a general rule, in accordance with the methods described in thisdocument. If an event not specified in this document occurs, or if TSE determines that it
is impossible to calculate the index using the methods described in this document, TSE
may use an alternative method of index calculation as it deems appropriate.
・ Copyright of this document is owned by TSE and any copies, reproductions, and reprintsof this document in whole or in part are prohibited in any form without the prior approvalof TSE. This document is prepared solely for the understanding of indices calculated
and published by TSE, and is not to be construed as a solicitation for trading any
securities or related financial instruments, etc. TSE shall accept no liability or
responsibility for any loss or damage arising from errors, delays, or termination of thecalculation or publication of Tokyo Stock Exchange Dividend Focus 100 Index, changes
to its calculation or publication method, the use of Tokyo Stock Exchange Dividend
Focus 100 Index or all or any part of this document or other similar events.
・ TSE calculates both price return, and total return versions of Tokyo Stock Exchange
Dividend Focus 100 Index.
Ⅰ. Tokyo Stock Exchange Dividend Focus 100 Index Overview
・ The Tokyo Stock Exchange Dividend Focus 100 Index is an index of 100 issues
selected with the aim of achieving stable quarterly dividend payments. Its constituent
universe is comprised of the constituents of TOPIX 1000 and Tokyo Stock Exchange
REIT Index. Issue selection is based on market capitalization and estimated dividend
yield. Issues to be delisted due to stock transfer, etc. shall be removed from theconstituent universe at the periodic review.
・ The TSE conducts periodic reviews of its constituents twice a year in January and July.

・ Start Date for Calculation: February 26, 2010
・ Base Value: 1,000 points

Ⅱ.

Index Calculation

1.

OutlineTokyo Stock Exchange Dividend Focus 100 Index is calculated using market capitalization

weighting. Each index is denominated in points and is calculated to the second decimal
place (values beyond the second decimal are rounded).

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2.

FormulaCurrent Market Value=෍Index =

(Number of Shares for Each Constituent × Stock Price for Each Constituent)

CMV× Base PointBMV

CMV = Current market value (free-float adjusted)
BMV = Base market

3.

Stock Price Used for Calculation

・ The stock prices used for calculating and adjusting base market values for Tokyo Stock
Exchange Dividend Focus 100 Index are prices from auction trading on TSE and aredetermined by the following order of priority:(1) Special Quote or Sequential Trade Quote, (2) Contract Price, (3) Base Price for Index
Calculation when neither (1) or (2) are available (determined in the following order: (1)Theoretical Ex-rights Price, (2) Most Recent Special Quote or Sequential Trade Quoteon or before the previous trading day, (3) Most Recent Contract Price before the previous
trading day.)4.

Number of Shares Used for Index Calculation

Number of shares for index calculation= Number of listed shares for index calculation × coefficients・ In general, the “number of listed shares for index calculation” in the above formula isequal to the number of listed shares, but in some cases these numbers are different
due to corporate actions such as stock splits. For example, in a stock split, the numberof listed shares changes on the listing change date, which comes after the effective
date. On the other hand, the number of listed shares used in index calculation (before
FFW adjustment) changes on the ex-rights date, leading to a brief period in which thetwo numbers are different.
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Also, the number of listed shares used in index calculation (before FFW adjustment) is
generally equal to the number of issued shares, but in the case of Nippon Telegraph andTelephone Corporation, Japan Tobacco, Inc., and Japan Post Holdings Co., Ltd., thegovernment of Japan holds some issued shares that have not been listed, leading these
two numbers to be different.
5.

Constituent selection(1) Periodic Review

a. Summary
・ The periodic review is conducted biannually in January and July. It involves inclusion
and/or removal of constituents based on market capitalization and estimated dividend
yield of constituents of TOPIX 1000 and Tokyo Stock Exchange REIT Index inaccordance with the “Selection Criteria” in b. below as of the base date.
・ The base date of the January/July periodic review is the first Wednesday of the month(in the case of a holiday, it will be the second Wednesday).
・ The list of constituent changes is published on the fifth business day prior to the day ofthe periodic review, and index calculation applying such constituent changes will begin
on the last business day of January/July.
・ Free-float adjusted market capitalization is used for constituent selection. In the case of
the Tokyo Stock Exchange REIT Index constituents, listed market capitalization (nonFFW adjustment) is used for constituent selection.
・ In the case of TOPIX 1000 constituents, the TSE uses the estimated dividend data
provided by Toyo Keizai, Inc. for selection. In the case of Tokyo Stock Exchange REIT
Index constituents, the TSE uses the estimated dividend data provided by such
constituent issuers.
・ There may be cases where less than 100 issues are selected.

b. Tokyo Stock Exchange Dividend Focus 100 Index selection criteria
Issue selection during the periodic review is conducted based on the following process.
Step 1. Constituents of TOPIX 1000 and the Tokyo Stock Exchange REIT Index as of thebase date are classified into the following 5 groups. Issues in Portfolio 5 are notincluded.
Portfolio 1: TOPIX 1000 constituents which settle accounts at the end of the businessyear in March or September.
Portfolio 2: TOPIX 1000 constituents which settle accounts at the end of the business6
Copyright © 2018- by Tokyo Stock Exchange, Inc. All rights reservedyear in June or December.
Portfolio 3: Out of the Tokyo Stock Exchange REIT Index constituents, those issues
which settle accounts at the end of the business year in March or
September, and which are selected as a result of screening by market
capitalization.
Portfolio 4: Out of the Tokyo Stock Exchange REIT Index constituents, those issues
which settle accounts at the end of the business year in June or December,and which are selected as a result of screening by market capitalization.
Portfolio 5: Issues that do not fall under the above portfolios.
Screening of Issues in Portfolios 3 and 4 by Market Capitalization
Issues in Portfolios 3 and 4 will be screened based on market capitalization.
① Issues which fall in the top 80 percent of cumulative market capitalization;② In the case where the number of selected issues in Portfolio 3 or 4 based on theabove screening criteria 1. is less than 5, issues will be included based on market
capitalization so that there are 5 issues in both portfolios.

TOPIX 1000
constituents

Tokyo Stock
Exchange
REIT Index
constituents

Mar/Sep issues

Portfolio 1

Jun/Dec issues

Portfolio 2

Other accounting
periods

Portfolio 5

Mar/Sep issues

Market cap. screening

Portfolio 3

Jun/Dec issues

Market cap. screening

Portfolio 4

Other accounting periods

Portfolio 5

Step 2. The TSE ranks the issues in each of Portfolios 1 to 4 in descending order ofdividend yield (in the case where more than one issue share the same dividend yield,
the issues will be ranked in descending order of market capitalization). The TSEclassifies such issues into the following 4 groups based on the market capitalization
ratio in each of the portfolios.
Group A: The TSE ranks the issues in the portfolio in descending order of dividend
yield and select the issues whose cumulative market capitalization occupies
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Copyright © 2018- by Tokyo Stock Exchange, Inc. All rights reservedthe top one-third (1/3) of the market capitalization of the entire portfolio.
Group B: From issues in the portfolio other than those included in Group A, the TSE
ranks issues in descending order of dividend yield and selects the issues sothat the cumulative market capitalization of all issues included in Groups A
and B occupies the top two-thirds (2/3) of the market capitalization of theentire portfolio.
Group C: Issues that do not fall under Groups A, B, and D.
Group D: Non-dividend-paying issues.
Step 3. From issues that fall under Group A of each of Portfolios 1 to 4, the TSE selects, indescending order of market capitalization, 45 issues each from Portfolios 1 and 2,
and 5 issues each from Portfolios 3 and 4.
Step 4. If, as a result of the step 3., the number of selected issues do not reach 45 from
Portfolios 1 and/or 2, or 5 from Portfolios 3 and/or 4, the TSE selects issues fromGroup B of each of the portfolios in descending order of market capitalization until
the number of issues reach the prescribed number (i.e., 45 or 5) for the respective
portfolios.
Step 5. If, as a result of step 4., the number of selected issues do not reach 45 from
Portfolios 1 and/or 2, or 5 from Portfolios 3 and/or 4, the TSE selects issues fromGroup C of each of the portfolios in descending order of market capitalization until
the number of issues reach the prescribed number (i.e., 45 or 5) for the respective
portfolios.
Step 6. If, as a result of step 5., the number of selected issues do not reach 45 from
Portfolios 1 and/or 2, or 5 from Portfolios 3 and/or 4, the TSE selects issues fromGroup D of each of the portfolios in descending order of market capitalization until
the number of issues reach the prescribed number (i.e., 45 or 5) for the respective
portfolios.
Cumulative
Market Cap.

High

Portfolio 1

Group A

1/3

Group B

1/3

HighGroup AGroup C

Selectissuesuntil no. of
issues reaches
the prescribed
numberGroup D (noLow

Rank in order ofdividendyield
andclassify into 4 groups

Low

Rank in order of market
capitalization

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(2）Removal of constituents in addition to the periodic review
・ The TSE excludes delisted issues and issues designated as “Securities to Be Delisted”
from the eligible constituents (Removal occurs on the same day as removal from TOPIX
Index).

(3）Inclusion of constituents in addition to the periodic review
・ In the case where a constituent of the Tokyo Stock Exchange Dividend Focus 100 Index
is delisted due to a stock transfer, stock-swap, merger by creation of a new company or
shareholder-directed spin-off, and, moreover, the newly created, surviving, or
succeeding company is listed on the TSE First Section or TSE REIT market without
delay, if the delisted issue was a constituent of the Tokyo Stock Exchange Dividend
Focus 100 Index, the TSE adds the new issue to the index.
・ In the case where a constituent of the Tokyo Stock Exchange Dividend Focus 100 Index
is delisted due to a stock-swap or absorption-type merger, in which stocks of thesurviving company or the parent company holding all shares of the constituent company
is not a constituent of the Tokyo Stock Exchange Dividend Focus 100 Index(constituents of TOPIX 1000 or Tokyo Stock Exchange REIT Index), the TSE adds
stocks of the surviving company or the parent company to the index.
・ Even though the number of constituents in the Tokyo Stock Exchange Dividend Focus
100 Index may decrease between periodic reviews due to the removal of constituents bymeans other than the periodic review as described in the previous item (2), no
supplementary inclusions are made to meet the intended number of constituents(inclusions to meet the intended number of constituents are only made during theperiodic review in January and July).
6. Calculation of coefficients for Tokyo Stock Exchange Dividend Focus 100 Index(1）Summary
・ The investment ratio for each constituent of the Tokyo Stock Exchange Dividend Focus
100 Index is determined at the time of the periodic review. The index indicates the trendof price movements of its constituents (Please refer to II. 6. for constituent selection).
Therefore, a different method is used to determine the constituent ratio other than thosefor indices which show the measure of market capitalization such as TOPIX, and theTokyo Stock Exchange REIT Index.
・ When determining the constituent ratios of the Tokyo Stock Exchange Dividend Focus
9
Copyright © 2018- by Tokyo Stock Exchange, Inc. All rights reserved100 Index, a different coefficient from the FFW is calculated during the periodic review tomake such constituent ratios correspond to the investment ratio of each constituent. The
value derived by multiplying the number of shares used for index calculation by thecoefficient is used as the market capitalization for calculation of the Tokyo Stock
Exchange Dividend Focus 100 Index.
・ The coefficient is calculated during the periodic review. In the case of a change in thenumber of shares in a constituent (excluding cases of a stock-split, reverse stock-split,
allotment to shareholders), there will be an extraordinary review. The coefficient varies
with each constituent, and has a value between a minimum of 0.00001 and a maximumof 9.99999 in increments of 0.00001.
(2) Calculation of coefficients during periodic review
The coefficient for an issue selected in 5. (1) b. is calculated according to the following
procedure.
Step 1. If the constituent ratio of a certain issue (within a portfolio) exceeds a certain level,
adjust this constituent ratio to fall within a certain ratio.
Step 2. Determine the quantitative constituent ratio of Portfolios 1 to 4 (within the index)
using the optimization method. This constituent ratio is set in increments of 1%.
Step 3. Calculate the market capitalization ratio of each issue in the respective portfolio towhich the issue belongs.
Step 4. Calculate the constituent ratio of each issue in the Tokyo Stock Exchange Dividend
Focus Index by multiplying the market capitalization ratio obtained in Step 3. by theconstituent ratio calculated in Step 2.
Step 5. Calculate the market capitalization for coefficient calculation by multiplying thenumber of listed shares of each issue for index calculation on the day of the periodic
review by the final share price for index calculation six business days prior to the day ofthe periodic review.
Step 6. Calculate the market capitalization ratio (of each constituent within the index) for
coefficient calculation by using the market capitalization calculated in Step 5.
Step 7. The coefficient of an issue shall be the value derived by dividing the market
capitalization ratio (of each constituent within the index) for coefficient calculation
computed in Step 6. by the constituent ratio of each issue in the Tokyo Stock
Exchange Dividend Focus Index calculated in Step 4 (the 6th decimal place isrounded off).

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（Example: Portfolio 1 and 2）
2. Optimization

3. Screening

4. Index constituent ratio

Portfolio 1

Stock A 80％

Stock A 48％

60％

Stock B 20％

Stock B 12％

Portfolio 2

Stock C 75％

Stock C 30％

40％

Stock D 25％

Stock D 10％

6. Market cap. ratio

7. Coefficient

Stock A 48％

Stock A 64％

Stock A 0.75000

Stock B 12％

Stock B 16％

Stock B 0.75000

Stock C 30％

Stock C 15％

Stock C 2.00000

Stock D 10％

Stock D 5％

Stock D 2.00000

4. Index constituent
ratio(3) Extraordinary review of coefficients
In the case of a change in the number of shares of a constituent of the index (excluding
cases of a stock-split, reverse stock-split, allotment to shareholders), the extraordinary
review of the coefficient will be conducted as follows (the 6th decimal place is rounded off).
Number of listed shares for index on business day before the day of increase in number of shares ×
Coefficient on business day before the day of increase in number of sharesNew
coefficient=

Number of listed shares for index after increase in number of shares

An extraordinary review of a coefficient is conducted only if the new coefficient and thevalue of the coefficient on the business day before the day of the increase in the number ofshares changes by 0.00001 or more.
Ⅲ.

Adjustment of Base Market ValueIn the event of an increase or decrease in the CMV due to reasons other thanfluctuations in the stock market such as public offerings or changes in the number of
constituents, necessary adjustments are made to the base market value as follows inorder to maintain the continuity of the indices.
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1.

Events which require adjustments(1）changes in constituents (inclusion/removal)
Event

Adjustment date

Price used for
adjustment

Inclusion

New listing of a newly formed company

One business day

Base price (usedresulting

beforeto decide the daily

from

a

corporate

consolidation, etc. (*1) that results inlisting date(*2)

price limit)

Delisting Date

Price on businessthe Tokyo Stock Exchange Dividend
Focus 100 Index constituent beingdelisted and the new company being
included in the Tokyo Stock Exchange
Dividend Focus 100 Index
In the event a constituent of the Tokyo

day

Stock Exchange Dividend Focus 100

beforeadjustment dateIndex is delisted due to a stock-swap or
absorption-type merger, in whichstocks of the surviving company or theparent company holding all shares of
the constituent company is not a
constituent of the Tokyo Stock
Exchange Dividend Focus 100 Index (aconstituent of TOPIX 1000 or Tokyo
Stock Exchange REIT Index), thesurviving company or the parent
company being included in the Tokyo
Stock Exchange Dividend Focus 100
Index
Periodic review in January and July

Date of change

Price on businessday

beforetheadjustment date
Delisting

New listing of a newly

Initial listing date ofPrice on business
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EventAdjustment date

Price used for
adjustment

Removalformed company resulting

newly

from a corporatecompany,etc.

consolidation, etc. that

(normally

two

result in the Tokyo Stockbusinessdays

Exchange Dividend Focus

followingdelisting

100 Index

date)

constituent

establishedday

beforethedelisting date(*3)

being delisted and the newcompany being included in
the Tokyo Stock Exchange
Dividend Focus 100 Index
which used to include thedelisted company.
Delisting other than those

One business day

Price on businessstated above (e.g.

before delisting dateday

non-surviving company as a

beforeadjustment dateresult of merger/acquisition,etc.)
Designationas

Securities

tobeDelisted

Four business days

Stock price at theafter designation*4

end of trading on
the business day
before adjustment
date

Section/market

changefrom

1stDate of change*5

Stock price at thesection to 2nd section, Mothers or

end of trading on

JASDAQthe business day
before adjustment
date

Periodic review in January and July

Date of change

Stock price on thebusiness day before
the adjustment date

*1: Consolidation, acquisition, merger or split (personnel split).
*2: Next business day when the new listing date falls on a holiday.
*3: The stock price at the end of trading on the business day before the delisting date is used to calculate

13
Copyright © 2018- by Tokyo Stock Exchange, Inc. All rights reservedthe index for the period from the delisting date to the removal date.
*4: Next business day when the designation date falls on a holiday.
*5: Next business day when the date of change falls on a holiday.
*6: Adjustments to the base market value are made after the end of trading on the business day before theadjustment date (i.e., before the market opens on the adjustment date). The same shall apply
hereinafter.

(2）Changes in Number of Shares Used for Index Calculation
Event Requiring Adjustment

Adjustment Date

Stock Price Used in
Adjustment

Date of Change

Change of coefficient

Stock Price Used in
Adjustment

Public offering

Additional listing date (day after Stock price at the end
payment date)of

tradingonthebusiness day before
adjustment date
Third-party allotment

Issuestoshareholders

after Stock price at the end
additional listing date (two of trading on thebusiness days after payment business day beforeFivebusiness

days

date)
with Ex-rights datepayment
Exercise of subscription warrants

adjustment date
Payment

price

per

share
Last business day of the month Stock price at the end
following exerciseoftradingonthebusiness day before
adjustment dateConversion of preferred stock, etc.

Last business day of the month Stock price at the end
following conversionof

tradingonthebusiness day before
adjustment date
Cancellation of treasury stock

Last business day of the month Stock price at the end
following cancellationof

tradingonthebusiness day before
adjustment date
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Event Requiring Adjustment

Adjustment Date

Stock Price Used in
Adjustment

Merge

Situations

in

which

r/Acqu constituent
isitiona Delisting

date

of

the Stock price at the endof non-surviving entity

TSE-calculatedof

indices*1

tradingonthebusiness day before

is the non-surviving entity

adjustment date(mergers/acquisitions
between two issues thatare both constituents of anindex calculated by the
TSE)
Situations other than those Listing change date (effective Stock price at the end
described above

date)

of

tradingonthebusiness day before
adjustment date
Sale

of

sharesJapaneseheldgovernmentbythe Date determined by TSE*2(Nippon

Stock price at the endoftradingonthe

Telegraph, Telephone and Japanbusiness day before

Tobacco and Japan Post Holdings

adjustment date

only)
Rights offering (limited to case Ex-Rights Date

Stock price at the end

where

of

the

allotted

subscription

warrant securities are listed) *3

tradingonthebusiness day before
adjustment dateCompany split (merged split)

Listing change date (effective Stock price at the end
date)

of

tradingonthebusiness day before
adjustment date
Other adjustments*5

Last business day of the month Stock price at the end
in

which

appearsintheinformation of“Sho-ho”

trading

onthe(TSE business day before

Notice) or the last business day adjustment dateof the following month*:

Next business day when the change (addition) date falls on a holiday (same applies below)*:

Since market value does not change when there is a stock price revision made due to a stock split, gratis
allotment of shares (limited to case where the allotted treasury stock), reverse split, etc., no adjustment is

15
Copyright © 2018- by Tokyo Stock Exchange, Inc. All rights reservedmade to the base value.
*1:

Constituents of TSE-calculated indices include domestic common shares, domestic preferred equity contribution
securities, domestic participating classified stocks, foreign stocks with exclusive listing on the TSE and REITs.

*2:

Generally the delivery date*3:

The number of shares for Rights offering used for calculating indices will correspond to the number of shares tobe allocated to shareholders. The case where the allotted subscription warrant securities are not listed istreated as “Exercise of subscription warrants”.

*4:

For example, situations in which an issuer of convertible bonds or other securities conducts a stock split; thenumber of shares calculated based on ratios for stock splits, reverse splits, paid-in allotment to shareholders,
right offering, etc. is different than the final number of shares determined after the effective date; or revisions
made by listed companies after data has been reflected in index calculation.

(3）Data Source
・ Information on the reason for base market value adjustments, details on the adjustment,
the adjustment date and other data is available through the “Sho-ho” (TSE Notice)
published daily by TSE based on reports, etc. made by listed companies. (Please refer tothe appendix for information on calculating FFW.)
・ If a listed company revises the contents of a previously published report that resulted in
an index adjustment, retroactive index adjustments will NOT be made based on therevised contents.
2.

Adjustment Method(1）Indices that do not reflect dividends (i.e. price indices)① Adjustment Method
・ Base market value will be adjusted according to the formula below in order to maintainthe continuity of the index:

Previous Business Day Market Value(Previous Business Day Market Value ± Adjustment Amount)=Pre − Adjustment Base Market Value
New Base Market Value (After Adjustment)*Adjustment Amount ＝ Increase (Decrease) in Number of Shares Used for Index
Calculation X Stock Price Used for Adjustment
Therefore,

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value ＝

Old Base Market Value × (Previous Business Day Market Value ± Adjustment Amount)
Previous Business Day Market Value② Adjustment Example
・ If, for example, the old base market value is 20 trillion yen and the previous day’s
market value is 400 trillion yen, TOPIX on the previous day will be:
Previous Day TOPIX＝ ¥400 tn ÷ ¥20 tn ×100＝ 2,000.00

・ Now, suppose that Stock A increases the number of listed shares used for index
calculation by 100 million shares due to a public offering. If the closing price of the stockon the previous day was ¥2,000, the adjustment amount is 100 million shares x ¥2,000= ¥200 billion. The new base market value, therefore, is:

New Base Market Value＝ ¥20 tn ×(¥400 tn ＋ ¥200 bn）÷ ¥400 tn＝ ¥20.01 tn

・ As illustrated below, if there is no price change in any constituent, the value for TOPIX
today is the same as the previous day: 2000 points. Thus, continuity in the index ismaintained though adjustments to base market value even if the market value of
constituents changes due to public offerings, etc.
(¥400 tn + ¥200 bn)÷¥20.01 tn = 2,000 points(2）Total Return Index
・ Dividends used in calculating the Total Return Index are gross (i.e. before tax)・ Since the dividend amount for the current period is not fixed as of the ex-dividend date,adjustments made to reflect dividends in the base market value are made in twostages: 1) adjustment using estimated dividends and 2) minor adjustments made toreflect differences in estimated dividend and dividend amount announced in theearnings report, etc.
a. Adjustments Using Estimated Dividends
・ The total dividend amount for all constituents is calculated on ex-dividend dates using
estimated dividends, and base market value is adjusted as above. In principle, the17
Copyright © 2018- by Tokyo Stock Exchange, Inc. All rights reserved

estimated dividend amount used is as follows:① Dividend amount for the current period as announced in timely disclosure documents,
if available② Dividend amount for the previous period if the dividend for the current period is not
fixed (e.g. the dividend is not announced in disclosure documents as ① above, orthe amount is not determined, etc.)
・ The base market value adjustment method is basically as described in the previous
section, except an adjustment is made to reflect dividends as follows:
New Base Market Value ＝

Old Base Market Value × (Previous Business Day Market Value − Total Dividends ± Adjustment Amount)
Previous Business Day Market Value
Dividends Per Constituent = Number of Shares Used for Index Calculation on Business Day
Before Ex-Dividend Date × Estimated Dividend Per Share* Total Dividends = Sum of Dividends for All Constituents* Adjustment Amount＝

Increase (Decrease)in Number of Shares Used for Index

Calculation X Stock Price Used for Adjustment
b. Minor Adjustment Made to Reflect Difference Between Estimated Dividend and Dividend
Announced in the Earnings Report, etc.
・ Minor adjustments are made with respect to those constituents for which the estimateddividend used on the ex-dividend date and the dividend announced in the earnings
report or the notice of dividends of surplus (hereinafter the “earnings report, etc.”) are
different. Specifically, the total dividend adjustment amount is calculated and the basemarket value adjustments are made on the last business day of the month in which thedividend is announced in the earnings report, etc. (hereinafter the “publication date”; if
the publication date is one business day before the last business day of the month or
the last business day of the month, adjustments will be as a general rule, made on thelast business day of the next month).
New Base Market Value ＝

Old Base Market Value × (Previous Business Day Market Value − Total Dividend Adjustment ± Adjustment Amount)
Previous Business Day Market Value

18
Copyright © 2018- by Tokyo Stock Exchange, Inc. All rights reservedAdjusted Dividend Per Constituent = Number of Shares Used for Index Calculation on
Business Day Before Ex-Dividend Date × (Dividend Announced in Earnings Report, etc. Estimated Dividend Per Share)* Total Adjusted Dividends = Sum of Adjusted Dividends for All Constituents* Adjustment Amount ＝Increase (Decrease) in Number of Shares Used for Index

Calculation X Stock Price Used for Adjustment

Ⅳ.

Other

1.

Publication/Dissemination of Index Data

（1）Index Values
・ Tokyo Stock Exchange Dividend Focus 100 Index values are disseminated in real-time(15 second intervals) through the Market Information System to securities companies,
news media, and other institutions all over the country.
・ The Total Return Index (Tokyo Stock Exchange Dividend Focus 100 Index) is
calculated daily at market close.
(2）Index Data
・ Index data relating to TSE-calculated Indices (base market value, Adjustment Factor foreach constituent, etc.) is provided for a fee through the Index Data Service.
2.

Licensing
TSE reserves all calculation, publication, and other rights pertaining to Tokyo Stock
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3.

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