August 27, 2018

Tokyo Stock Exchange, Inc.

Announcing Fifty Candidates for the 7th Corporate Value Improvement Award

Since 2012, , Inc. (TSE) has presented the Corporate Value Improvement Award to listed companies that adopt management practices aimed at increasing corporate value from the vantage point of investor interests. Fifty candidates have been selected for the 7th Corporate Value Improvement Award. For names and other information about the candidates, please refer to the appendix.

These fifty companies were selected for the following reasons: - Their ROE stably surpassed their equity capital cost over the past five years; and - They obtained exemplary results in a questionnaire on management goals, capital cost, and other matters, as well as in terms of how far their value creation surpassed weighted average cost of capital (WACC), etc.

The next steps before selecting finalists will involve taking a closer look at such companies through questionnaires and other means to assess how they pursue initiatives toward improving corporate value.

Contact Listed Company Award Office Listing Department, Tokyo Stock Exchange, Inc.

1 Appendix

Fifty Candidates for 7th Corporate Value Improvement Award

Market Company Name Code Sector Division JAC Recruitment Co.,Ltd. 2124 Services 1st section

Trust Tech Inc. 2154 Services 1st section

Meiji Holdings Co.,Ltd. 2269 Foods 1st section JASDAQ EPCO Co.,Ltd. 2311 Services Standard DIP corporation 2379 Services 1st section

Benefit One Inc. 2412 Services 2nd section

Asahi Group Holdings,Ltd. 2502 Foods 1st section

Lawson,Inc. 2651 Retail Trade 1st section JASDAQ Seria Co.,Ltd. 2782 Retail Trade Standard Co.,Inc. 2802 Foods 1st section

Hulic Co.,Ltd. 3003 Real Estate 1st section

The Monogatari Corporation 3097 Retail Trade 1st section Information & KOEI TECMO HOLDINGS CO.,LTD. 3635 1st section Communication Information & Ateam Inc. 3662 1st section Communication Information & AVANT CORPORATION 3836 1st section Communication Information & COMTURE CORPORATION 3844 1st section Communication COMPANY,LIMITED 4005 Chemicals 1st section

Nissan Chemical Corporation 4021 Chemicals 1st section Information & Nomura Research Institute,Ltd. 4307 1st section Communication FUSO CHEMICAL CO.,LTD. 4368 Chemicals 1st section

Eisai Co.,Ltd. 4523 Pharmaceutical 1st section

ONO PHARMACEUTICAL CO.,LTD. 4528 Pharmaceutical 1st section

TERUMO CORPORATION 4543 Precision Instruments 1st section

MEIKO NETWORK CO.,LTD. 4668 Services 1st section

Tokyo Individualized Educational Institute,INC. 4745 Services 1st section Information & JASDAQ TOEI ANIMATION CO.,LTD. 4816 Communication Standard FULLCAST HOLDINGS CO.,LTD. 4848 Services 1st section

2 Market Company Name Code Sector Division Lion Corporation 4912 Chemicals 1st section

E-Guardian Inc. 6050 Services 1st section

DISCO CORPORATION 6146 Machinery 1st section

KUBOTA CORPORATION 6326 Machinery 1st section

DAIKIN INDUSTRIES,LTD. 6367 Machinery 1st section

MINEBEA MITSUMI Inc. 6479 Electric Appliances 1st section

YASKAWA Electric Corporation 6506 Electric Appliances 1st section

NIDEC CORPORATION 6594 Electric Appliances 1st section

Lasertec Corporation 6920 Electric Appliances 1st section

Murata Manufacturing Co.,Ltd. 6981 Electric Appliances 1st section Transportation MOTOR CORPORATION 7269 1st section Equipment Transportation TS TECH CO.,LTD. 7313 1st section Equipment 7741 Precision Instruments 1st section

ASAHI INTECC CO.,LTD. 7747 Precision Instruments 2nd section

ITOCHU Corporation 8001 Wholesale Trade 1st section

UNICHARM CORPORATION 8113 Chemicals 1st section JASDAQ CENTURY21 REAL ESTATE OF JAPAN LTD. 8898 Real Estate Standard TOSHO CO.,LTD. 8920 Services 1st section

East Japan Railway Company 9020 Land Transportation 1st section NIPPON TELEGRAPH AND TELEPHONE Information & 9432 1st section CORPORATION Communication Information & HIKARI TSUSHIN,INC. 9435 1st section Communication CO.,LTD. 9735 Services 1st section Information & NSD CO.,LTD. 9759 1st section Communication （in order of code number）

3 Selection Process for Corporate Value Improvement Award

Select, from among all TSE-listed companies (approx. 3,600), 1st Round companies whose ROE stably surpassed their equity capital cost over the past five years (approx. 800 in FY2018).

Send out a questionnaire on management goals, capital cost, and other matters to the companies that have passed the 1st Round. Calculate how far value creation has surpassed weighted average nd 2 Round cost of capital (WACC), etc. based on a preset formula using figures, etc. in consolidated financial statements. Based on said data, select 50 companies and announce them (on August 27, 2018) as candidates for the awards.

Send out a detailed questionnaire on management approach to the 50 companies and assess their methods for achieving sustainable 3rd Round value-creating growth. Select approximately three companies based on the questionnaire and announce them as finalists (scheduled to be announced in October 2018).

The Listed Company Award Selection Committee interviews finalists' th management, and feedback is gathered from investors and analysts 4 round before determining the winner (scheduled to be released in January 2019).

Selection is performed by experts forming the Listed Company Award Committee.

Professor, Hitotsubashi University, Graduate School of Chairman Kunio Ito Business Administration

Chairman and Founder, Sawakami Asset Management, Member Atsuto Sawakami Inc.

Chief Executive Officer and Partner, Ichigo Asset Member Scott Callon Management, Ltd.

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