Fact Book 2004

FACT BOOK 2004

Tokyo, where the world trades 2003 TSE STATISTICAL HIGHLIGHTS

Stock Market Listed Companies [Domestic] ...... 2,174 [Foreign] ...... 32 Newly Listed Companies [Domestic] ...... 120 Market Value (¥ bils.) [Domestic] ...... 316,483 Trading Value (¥ bils.) [Domestic] ...... 242,371 [Foreign] ...... 24 Trading Volume [Domestic] ...... 316,124,248 (thous. shs.) [Foreign] ...... 6,419

Derivative Markets Trading Volume (¥ bils.) [5-Year Japanese Government Bond Futures] ...... — [10-Year Japanese Government Bond Futures] ...... 6,382,215 [20-Year Japanese Government Bond Futures] ...... — (contracts) [Options on Japanese Government Bond Futures] ...... 972,518 [TOPIX Futures] ...... 9,359,047 [TOPIX Sector Index Futures] ...... 141,055 [TOPIX Options] ...... 98,137 [Equity Options] ...... 296,574 Open Interest (¥ bils.) [5-Year Japanese Government Bond Futures] ...... — [10-Year Japanese Government Bond Futures] ...... 50,849 [20-Year Japanese Government Bond Futures] ...... — (contracts) [Options on Japanese Government Bond Futures] ...... 17,051 [TOPIX Futures] ...... 295,606 [TOPIX Sector Index Futures] ...... 401 [TOPIX Options] ...... 490 [Equity Options] ...... 15,950

Bond Market Listed Issues [Domestic] ...... 481 [Foreign] ...... 2 Market Value (¥ bils.) ...... 463,261 Trading Value (¥ bils.) ...... 1,070 Trading Volume (¥ bils.) ...... 1,021 (Par Value)

High 1,105.59 Oct. 20 TOPIX (Tokyo Stock Price Index) Low 770.62 May 11 Year-end 1,043.69 (+200.40)

Liability While every effort has been taken to ensure that the data contained in this FACT BOOK 2004 is free from error, TSE does not accept any responsibility for any damages or losses suffered as a result of using any of the data in any way. TABLE OF CONTENTS

STOCK

MARKET

THE...... YEAR 2003 IN REVIEW ...... 1

STOCK MARKET

TRENDS

STOCK PRICE Stock Trading Activities...... 2 Trading Volume & Value / Active Stocks / Transactions by Investment Sectors / All Domestic Stock Exchanges / TSE Foreign Stock Market / Major International Markets Trading Mechanism...... 7

LISTING Order-Driven Market / Trading Unit / Tick Size, Daily Price Limit / System Diagram / Computer Trading / Margin Transactions / Off-Hours Trading Clearing & Settlement ...... 15 Clearing & Settlement / Clearing & Settlement of Foreign Stocks

MARKETS

DERIVATIVE STOCK PRICE TRENDS TOPIX (Tokyo Stock Price Index) ...... 18 TOPIX (Daily Closing 2003) ...... 19 TOPIX Subindices ...... 20

BOND TOPIX New Index Series...... 22 MARKETS Stock Price Averages and Other Key Indices ...... 23 Arithmetic Stock Price Average / Weighted Stock Price Average / PER / PBR / Dividend Yields

LISTING Listing Regulations ...... 26 INVESTORS Listing Criteria / Numerical Criteria / Listing Fees Mothers ...... 30 Listing Criteria / Delisting Criteria / Listing Fees Foreign Stocks ...... 32 Listing Criteria / Listing Fees

SECURITIES COMPANIES Investment Trusts ...... 34 ETF / REIT Listed Companies ...... 36 Overview / Newly Listed, Delisted & Section Assignments / Listed Foreign Companies /

TAXATION

SECURITIES Listed Company Awards Financing ...... 42 Equity / Debt

CAPITAL FLOW CAPITAL

CROSS BORDER DERIVATIVE MARKETS Derivative Markets in TSE ...... 44 Trading Activities & Contract Specifications ...... 45 TOPIX Futures / S&P / TOPIX 150 Futures / TOPIX Sector Index Futures / TOPIX Options / DATA Equity Options / JGB Futures / Options on JGB Futures HISTORICAL Coordination between Cash & Derivative Markets ...... 57 Temporary Trading Halts / Temporary Restriction on Index Arbitrage Trading / Index Arbitrage & Program Trading

REGIONEL GLOBAL AND BOND MARKETS

ORGANIZATIONS Bond Trading Activities ...... 60 Trading Volume and Yields / Convertible Bonds Trading Specifications ...... 62

LIST

TRADING Listing Regulations ...... 63 PARTICIPANT Listing & Delisting Criteria / Listing Fees MARKET

STOCK

STOCK PRICE

TRENDS INVESTORS Shareownership ...... 66 By Market Value / Number of Shareholders

Investment Plans ...... 68 LISTING Employee Stock Ownership Financial Assets of Individuals ...... 69 SECURITIES COMPANIES

DERIVATIVE Overview of Securities Companies ...... 70 MARKETS Requirements / Business Offices / Shareholders’ Equity / Workforce / Number of Member Companies in Each Stock Exchange Income Statements of TSE Trading Participants ...... 71

MARKETS

SECURITIES TAXATION BOND Tax on Capital Gain ...... 72 Tax on Dividends, Interest ...... 73 CROSS BORDER CAPITAL FLOW

INVESTORS Securities Investment ...... 74 Foreign Investment in Japanese Securities / Foreigners’ Stock Trading on Japanese Stock Exchanges by Regions / Japanese Investment in Foreign Securities

COMPANIES

SECURITIES HISTORICAL DATA Historical Highlights...... 77 Stock Trading Volume (Domestic Stocks) ...... 78 Stock Trading Value (Domestic Stocks) ...... 79

Percentage of Stock Transactions by Investment Sectors ...... 80 SECURITIES

TAXATION Stock Trading Value on All Stock Exchanges ...... 81 Listed Companies, etc. in TSE and All Stock Exchanges in Japan ...... 82 Equity Financing (All Listed Companies) ...... 83 TSE Foreign Stock Market...... 84

CROSS BORDER TOPIX (Tokyo Stock Price Index) ...... 85 CAPITAL FLOW 10 Largest Day-to-Day Fluctuations in TOPIX ...... 86 Nikkei 225...... 87 GLOBAL AND REGIONAL ORGANIZATIONS

WFE...... 88 HISTORICAL EAOSEF ...... 89 DATA

ORGANIZATIONAL...... STRUCTURE ...... 90

ORGANIZATIONS

GLOBAL AND

TRADING...... PARTICIPANT LIST ...... 91 REGIONEL

Remarks 1. The specific symbols in the statistical tables are the followings; “0” Fractional or less than the unit.

PARTICIPANT

“-“ Nil, no figures or N/A TRADING 2. Figures less than the unit are omitted, except that in the case of average or ratio, a fraction of 0.5 or more is LIST counted as a whole number and a fraction less than that is omitted. 3. Figures for stocks are those for common stocks unless otherwise noted. 4. Figures are those for TSE unless otherwise noted. THE YEAR 2003 IN REVIEW

1. Market Reform on TSE's web site in April 2003, is a market capitalization-weighted index based on all J-REITs listed on Commencement of operations of Japan Securi- TSE and provides a comprehensive measure of price ties Clearing Corporation changes on TSE's REIT market. Due to strong de- Japan Securities Clearing Corporation (JSCC), mands from users, TSE began providing the Tokyo which offers central counterparty services for equi- Stock Exchange REIT Index on a real-time basis. ties and fixed income products traded on all domestic Japanese stock exchange markets, commenced operations on January 14. The commencement of JSCC streamlined the settlement process and sig- 3. Strengthening TSE’s Foundation nificantly reduced the amount of both securities and funds required for settlement of cash products. Quarterly Financial Reporting Committee Estab- lished Review of listing fees In January 2003, a Quarterly Financial Reporting TSE reviewed its listing fees and made revisions Committee was formed and TSE issued a report on in April 2003 as part of its measures to ensure that basic disclosure practices and preparation of quar- yearly listing fees, which are based on the number terly reports based on Japanese accounting prin- of a company’s listed stocks, do not rise as compa- ciples for interim financial statements. nies lower their trading units. These revisions ex- As a result of the committee’s discussions, all tended to yearly listing fees, fees for new listings, listed companies were required as of April 2004 to fees associated with issuing new stock after a submit a quarterly financial report including sum- merger and the like, fees associated with TDNet, marized balance sheets and profit and loss state- and fees for examinations for transfers from the 2nd ments. to 1st section. TSE expects that this new reporting requirement will further facilitate informed investment decisions 2. Expansion of Information Capabilities in the market.

Stock Data Search feature launched on Development of Electronic Voting Rights Execu- homepage tion Platform On June 16, 2003 TSE launched a Stock Data Amid the changing environment of Japanese Search feature on its homepage. The feature al- capital markets, it has become increasingly impor- lows users to access information such as stock price tant to foster an environment where institutional and data and graphs with open, high, low, close, and foreign investors can exercise their voting rights. present prices, as well as trading volume and trad- Though a joint initiative with Japan Securities Deal- ing value (all information delayed 20 minutes). Fi- ers Association, TSE began to investigate develop- nancial information such as earnings per share, ing a platform in April 2003, and held a discussion shareholders equity per share, dividends, and issued meeting in November 2003. The proposed platform shares are also available. This new feature allows is planned for operation in fall of 2004. market participants even greater access to market information. 4. International Cooperation

New Indices Agreements Concluded TSE began calculation and publication of TOPIX A) TSE and Shenzhen Stock Exchange signed a 1000 and Tokyo Stock Exchange Mothers Index, memorandum of understanding on Jaunary 15, together with real-time dissemination of Tokyo Stock 2003. Exchange REIT Index, on September 16, 2003. B) JSSC and China Securities Depository and Clear- TOPIX 1000 is a market capitalization-weighted ing Corporation Limited (SD&C) signed a memo- index consisting of the 1000 most liquid stocks with randum of understanding on October 30, 2003. the largest market capitalization from TSE’s 1st section. Tokyo Stock Exchange Mothers Index is a market capitalization-weighted index based on all stocks listed on Mothers and provides a comprehensive measure of price changes on TSE's Mothers market. Tokyo Stock Exchange REIT Index, which began

1 STOCK MARKET

MARKET

STOCK

Stock Trading Activities Stock Trading Volume & Value The total trading volume in 2003 increased to 316.1 billion shares, with a daily average of 1,290 There are three kinds of stock trading methods million shares. The total trading value and daily av- on TSE — (1) “regular” transactions settled on the erage trading value increased to 242.3 trillion yen third business day following the day of the contract, and 989 billion yen, respectively. (2) “cash” transactions settled on the day of the The turnover ratio on a volume basis increased contract or on the next business day, and (3) “when to 97.0%, and the turnover ratio on a value basis issued” transactions settled in new shares after rose to 85.9%. their issuance. In practice, “regular” transactions account for almost all trading.

Stock Trading Volume & Value (Domestic Stocks)

Turnover Turnover No. of Volume (mils. of shares) Value (¥ bils.) Trading Ratio (%) Ratio (%) (based on Days Total Daily Total Daily (based on Average volume) Average value)

1997 245 107,566 439 30.7 108,500 442 34.5 1998 247 123,198 498 35.2 97,391 394 35.0 1999 245 155,163 633 44.1 185,541 757 50.7 2000 248 174,159 702 49.2 248,662 1,002 60.8 2001 246 204,037 829 59.2 202,261 822 61.5 2002 246 213,173 866 64.7 193,354 785 71.0 2003 245 316,124 1,290 97.0 242,371 989 85.9

Jan. 19 17,335 913 5.4 11,927 627 4.9 Feb. 19 18,989 999 5.9 12,802 673 5.3 Mar. 20 19,764 988 6.1 13,421 671 5.7

Apr. 21 23,182 1,103 7.1 14,678 698 6.3 May 21 24,214 1,153 7.5 15,527 739 6.4 June 21 33,854 1,612 10.4 19,806 943 7.7

July 22 33,438 1,519 10.3 25,618 1,164 9.4 Aug. 21 31,543 1,502 9.7 22,375 1,065 7.8 Sept. 20 32,492 1,624 9.9 29,483 1,474 9.8

Oct. 22 33,746 1,533 10.3 33,368 1,516 10.8 Nov. 18 21,546 1,197 6.6 22,000 1,222 7.2 Dec. 21 25,995 1,237 7.9 21,360 1,017 6.9

2 STOCK

MARKET

50 Most Active Stocks (Value) (2003)

Value Value Rank Stocks Rank Stocks (¥ bils.) (¥ bils.)

1 SOFTBANK 7,754 26 Sharp 1,657 2 Sumitomo Mitsui Financial Group 7,510 27 Daiwa Securities Group 1,503 3 Mizuho Financial Group 7,169 28 KYOCERA 1,479 4 NTT DoCoMo 5,464 29 Nikko Cordial 1,447 5 UFJ Holdings 5,452 30 ITO-YOKADO 1,428 6 TOYOTA MOTOR 5,212 31 SEVEN-ELEVEN JAPAN 1,393 7 SONY 4,603 32 The Tokyo Electric Power 1,378 8 Mitsubishi Tokyo Financial Group 4,320 33 Shin-Etsu Chemical 1,361 9 CANON 4,064 34 RICOH 1,299 10 Nomura Holdings 3,192 35 Kao 1,283 11 Takeda Chemical Industries 3,125 36 East Japan Railway 1,263 12 HONDA MOTOR 2,836 37 TDK 1,244 13 NIPPON TELEGRAPH AND TELEPHONE 2,706 38 BRIDGESTONE 1,218 14 NEC 2,616 39 Millea Holdings 1,172 15 NISSAN MOTOR 2,580 40 Mitsubishi 1,116 16 Tokyo Electron 2,539 41 Mitsubishi Heavy Industries 1,106 17 Matsushita Electric Industrial 2,304 42 Yamanouchi Pharmaceutical 1,091 18 KDDI 1,973 43 Resona Holdings 1,000 19 Fuji Photo Film 1,915 44 SANYO ELECTRIC 950 20 FUJITSU 1,860 45 Mitsubishi Estate 933 21 Hitachi 1,848 46 JFE Holdings 926 22 ADVANTEST 1,821 47 SECOM 912 23 FANUC 1,712 48 PIONEER 889 24 TOSHIBA 1,699 49 TOKYO GAS 864 25 NIPPON STEEL 1,681 50 The Furukawa Electric 850

Total trading value of 50 most active stocks (A) 117,740 Total trading value of all listed domestic stocks (B) 242,371 Ratio (A/B) 48.6%

3 MARKET

STOCK

Stock Transactions by Investment Sectors (Tokyo, Osaka & Nagoya)

(¥ bils.) 2000 Buy Sell Total (%) Net Trading Participants' own accounts 81,048 78,731 159,779 31.3% 2,316 Individuals 37,214 39,203 76,417 15.0% -1,989 Foreigners 73,225 75,588 148,813 29.1% -2,362 Insurance Companies 4,704 5,004 9,708 1.9% -300 Banks 40,986 39,118 80,104 15.7% 1,868 Investment Trusts 6,179 4,100 10,279 2.0% 2,078 Business Corporations 5,195 7,154 12,349 2.4% -1,958 Others 7,019 6,395 13,414 2.6% 624 Total 255,574 255,297 510,871 100.0% 277 2001 Buy Sell Total (%) Net Trading Participants' own accounts 65,543 65,564 131,107 33.1 -21 Individuals 23,425 24,186 47,611 12.0 -761 Foreigners 69,812 67,491 137,303 34.7 2,321 Insurance Companies 1,988 3,289 5,277 1.3 -1,301 Banks 26,075 26,123 52,198 13.2 -48 Investment Trusts 3,949 3,436 7,385 1.9 513 Business Corporations 3,162 3,730 6,892 1.7 -568 Others 4,226 4,031 8,257 2.1 195 Total 198,180 197,850 396,030 .100.0 330 2002 Buy Sell Total (%) Net Trading Participants' own accounts 65,449 66,531 131,980 35.8 -1,082 Individuals 27,121 27,466 54,587 14.8 -345 Foreigners 58,857 58,097 116,954 31.7 760 Insurance Companies 1,411 2,239 3,650 1.0 -828 Banks 20,907 20,109 41,016 11.1 798 Investment Trusts 2,725 2,763 5,488 1.5 -38 Business Corporations 3,796 3,384 7,180 1.9 412 Others 3,953 3,609 7,562 2.1 344 Total 184,219 184,198 368,417 100.0 21 2003 Buy Sell Total (%) Net Trading Participants' own accounts 69,783 68,976 138,759 31.9 807 Individuals 39,757 41,409 81,166 18.7 -1,652 Foreigners 72,380 64,166 136,546 31.4 8,214 Insurance Companies 1,016 2,123 3,139 0.7 -1,107 Banks 20,651 26,456 47,107 10.8 -5,805 Investment Trusts 3,025 3,166 6,191 1.4 -141 Business Corporations 4,370 4,594 8,964 2.1 -224 Others 6,588 6,473 13,061 3.0 115 Total 217,570 217,363 434,933 100.0 207 1. Figures are based on domestic stock transactions at Tokyo, Osaka, and Nagoya Stock Exchanges. 2. Figures are derived from regular Trading Participants with capital of 3 billion yen or more. 3. Foreigners are individual foreigners and foreign corporations.

4 STOCK

MARKET

Trading Volume & Value on All Stock Exchanges

Share of Stock Trading Volume & Value by Exchanges (2003)

Nagoya Other Nagoya Other 0.2% 0.03% 0.2% 0.02% Osaka Osaka 4.5% 4.8%

Tokyo 95.3% Tokyo 94.9%

Volume Value

Stock Trading Volume & Value on All Stock Exchanges

(mils. of shares, ¥ bils.)

All Exchanges Tokyo Osaka Nagoya

Volume Value Volume Value Volume Value Volume Value

1997 130,657 151,445 107,566 108,500 15,407 27,024 6,098 12,758 1998 139,757 124,101 123,198 97,391 12,836 20,532 3,367 5,985 1999 175,445 210,236 155,163 185,541 14,972 22,105 4,934 2,371 2000 196,087 290,325 174,159 248,662 17,267 34,669 4,575 6,876 2001 217,893 225,238 204,037 202,261 12,377 20,778 1,402 2,112 2002 224,567 209,229 213,173 193,354 10,403 14,727 847 1,065 2003 331,731 255,324 316,124 242,371 14,794 12,356 708 535

Fukuoka Sapporo Others

Volume Value Volume Value Volume Value

1997 244 204 248 246 1,090 2,710 1998 48 26 96 38 209 125 1999 51 32 102 47 229 136 2000 43 27 27 20 12 67 2001 37 20 37 64 1 0 2002 99 55 42 26 —— 2003 69 67 34 12 ——

Note: Trading volume and value of foreign stocks are not included.

5 MARKET

STOCK

TSE Foreign Stock Market

No. of No. of Volume (thous. of shs.) Value (¥ mils.) Trading Listed Total Daily Total Daily Days Companies Average Average

1998 247 52 22,131 90 88,686 359 1999 245 43 19,861 81 82,304 335 2000 248 41 13,407 54 67,614 272 2001 246 38 11,720 47 47,786 194 2002 246 34 13,364 54 53,593 217 2003 245 32 6,419 26 24,386 99

Jan. 19 34 620 32 2,500 131 Feb. 19 34 540 28 2,051 107 Mar. 20 34 505 25 2,236 111

Apr. 21 33 521 24 1,964 93 May 21 33 405 19 1,396 66 June 21 33 628 29 1,958 93

July 22 33 492 22 1,796 81 Aug. 21 32 406 19 1,592 75 Sept. 20 32 444 22 1,951 97

Oct. 22 32 592 26 1,935 87 Nov. 18 32 468 26 1,715 95 Dec. 21 32 794 37 3,286 156

Major International Markets (During or End of 2003)

Stock Exchange Tokyo New York London Germany Euronext

No. of Listed [Domestic] 2,174 1,842 2,311 684 1,047 Companies [Foreign] 32 466 381 182 345

Market Value (US$ mil.) 2,953,098.3 11,328,953.1 2,425,822.0 1,079,026.2 2,076,410.2

Trading Value (US$ mil.) 2,130,710.5 9,692,341.2 3,624,009.4 1,304,987.3 1,905,398.4

Note: 1. Market Value excludes figures for foreign companies and investment funds. 2. Trading Value for London is calculated in Regulated Environmental View. 3. Floor trading excluding the market segment 'Freiverkehr' (unofficial regulated market). 4. Euronext includes Amsterdam, Brussels, Lisbon and Paris figures. Source: WFE Monthly Statistics

6 STOCK MARKET Trading Mechanism An Entirely Order-Driven Market Conversely, if the imbalance continues, the spe- TSE’s market operates as a continuous auction, cial quotes are revised up or down within certain where buy and sell orders interact directly with one parameters (see table on next page), at intervals of another. at least five minutes until the imbalance is resolved. All orders, whether limit or market orders, are placed by broker/dealer trading participants (see (2) Daily Price Limits table on next page for tick size) and matched in ac- In addition to special quotes, TSE sets daily price cordance with price priority and time priority rules. limits for individual stocks to prevent day-to-day wild Under the price priority rule, a sell (buy) order with swings in stock prices and provide for “time-out” the lowest (highest) price takes precedence. Under in the event of a sharp rise or decline in price and the time priority rule, an earlier order takes prece- the resulting reaction from the investing public. Daily dence over others at the same price. Thus, when price limits are set in terms of absolute yen values the lowest sell and highest buy orders match in according, for the sake of simplicity, to the price price, the transaction is executed at the price. In range of each stock (see table on next page). As short, TSE’s market is a pure order-driven market the price limits prohibit bids and offers at prices with no market-makers. beyond the set limits, the market for a stock is open There are two transaction methods: the itayose for trading within these limits, even though the stock and zaraba methods. The itayose method is used may have hit a limit. Daily price limits also apply to mainly to decide opening and closing prices. Under special quotes. Consequently, special quotes can- the itayose method, the time priority rule is not ap- not be indicated outside the daily price limit. plied and numerous orders placed before price set- ting are matched in aggregate. In other words, if an (3) Trading Units order is placed before the market opens, it will be Trading units are the minimum amount of each executed at the opening price regardless of size. In individual stock that may be traded. Per an amend- contrast, under the zaraba method, both the price ment made to the Commercial Code in October priority and time priority rules are applied, and pairs 2001 the number of shares which constitute one of buy and sell orders are matched continuously. unit may now be determined under the constitu- In addition, TSE adopts the following unique measures to prevent wild short-term fluctuations in tion of each listed company. prices. These measures not only help ensure price TSE has been working to encourage listed com- continuity, but also in effect work as “circuit break- panies with high prices and large trading units to ers” in an emergency. reduce the size of their trading units to provide increased accessibility for individual investors, who (1) Special Bid & Asked Quotes are currently put off by the expense involved in buy- When there is a major imbalance in orders, special bid or asked quotes are indicated. This is indica- ing even one unit. As of the end of 2003, 1,341 of tive of a major imbalance between buy and sell or- 2,174 listed companies adopted 1,000 shares as ders. Special quotes are disseminated publicly their trading unit. However, due to the efforts of through the TSE market information system. If TSE and all its listed companies, the trading unit counter orders come into the market and the or- size has been gradually decreasing. ders are matched at that price, the quote is with- drawn.

Trading units of listed companies (As of end of 2003) Number of companies Trading Unit First section Second section Mothers Total 1 share 39 27 65 131 10 shares 6 1 0 7 50 shares 6 1 0 7 100 shares 470 152 3 625 500 shares 39 23 0 62 1,000 shares 972 365 4 1,341 3,000 shares 1 0 0 1 Total 1,533 569 72 2,174

7 MARKET

STOCK

Tick Size

Stock Price per Share Tick Size

Up to ¥2,000 ¥1 More than ¥2,000 Up to ¥3,000 ¥5 More than ¥3,000 Up to ¥30,000 ¥10 More than ¥30,000 Up to ¥50,000 ¥50 More than ¥50,000 Up to ¥100,000 ¥100 More than ¥100,000 Up to ¥1,000,000 ¥1,000 More than ¥1,000,000 Up to ¥20,000,000 ¥10,000 More than ¥20,000,000 Up to ¥30,000,000 ¥50,000 More than ¥30,000,000 ¥100,000

Daily Price Limits Special Quote Parameters

Previous Day's Closing Price or Daily Price Parameters Current price Special Quote Limits (+) (+)

Less than¥100 ¥30 Less than ¥500 ¥5 Equal to or more than ¥100 ¥200 ¥50 Equal to or more than ¥500 ¥1,000 ¥10 ¥200 ¥500 ¥80 ¥1,000 ¥1,500 ¥20 ¥500 ¥1,000 ¥100 ¥1,500 ¥2,000 ¥30 ¥1,000 ¥1,500 ¥200 ¥2,000 ¥3,000 ¥40 ¥1,500 ¥2,000 ¥300 ¥3,000 ¥5,000 ¥50 ¥2,000 ¥3,000 ¥400 ¥5,000 ¥10,000 ¥100 ¥3,000 ¥5,000 ¥500 ¥10,000 ¥20,000 ¥200 ¥5,000 ¥10,000 ¥1,000 ¥20,000 ¥30,000 ¥300 ¥10,000 ¥20,000 ¥2,000 ¥30,000 ¥50,000 ¥400 ¥20,000 ¥30,000 ¥3,000 ¥50,000 ¥70,000 ¥500 ¥30,000 ¥50,000 ¥4,000 ¥70,000 ¥100,000 ¥1,000 ¥50,000 ¥70,000 ¥5,000 ¥100,000 ¥150,000 ¥2,000 ¥70,000 ¥100,000 ¥10,000 ¥150,000 ¥200,000 ¥3,000 ¥100,000 ¥150,000 ¥20,000 ¥200,000 ¥300,000 ¥4,000 ¥150,000 ¥200,000 ¥30,000 ¥300,000 ¥500,000 ¥5,000 ¥200,000 ¥300,000 ¥40,000 ¥500,000 ¥1,000,000 ¥10,000 ¥300,000 ¥500,000 ¥50,000 ¥1,000,000 ¥1,500,000 ¥20,000 ¥500,000 ¥1,000,000 ¥100,000 ¥1,500,000 ¥2,000,000 ¥30,000 ¥1,000,000 ¥1,500,000 ¥200,000 ¥2,000,000 ¥3,000,000 ¥40,000 ¥1,500,000 ¥2,000,000 ¥300,000 ¥3,000,000 ¥5,000,000 ¥50,000 ¥2,000,000 ¥3,000,000 ¥400,000 ¥5,000,000 ¥10,000,000 ¥100,000 ¥3,000,000 ¥5,000,000 ¥500,000 ¥10,000,000 ¥15,000,000 ¥200,000 ¥5,000,000 ¥10,000,000 ¥1,000,000 ¥15,000,000 ¥20,000,000 ¥300,000 ¥10,000,000 ¥15,000,000 ¥2,000,000 ¥20,000,000 ¥30,000,000 ¥400,000 ¥15,000,000 ¥20,000,000 ¥3,000,000 ¥30,000,000 ¥50,000,000 ¥500,000 ¥20,000,000 ¥30,000,000 ¥4,000,000 ¥50,000,000 or more¥1,000,000 ¥30,000,000 ¥50,000,000 ¥5,000,000 ¥50,00,000 or more ¥10,000,000

8 STOCK

MARKET TOKYO STOCK EXCHANGE SYSTEM DIAGRAM

TSE Trading Tokyo Stock Exchange Participants

Market Center (TSE ARROWS)

Computer-assisted Stock Trading Booth Monitoring terminal unit

Computer-assisted Bond Monitoring Futures & Options Trading Booth terminal unit

TSE Execution Trading terminal unit Participant Systems

Computer-assisted Equity Monitoring Derivatives Trading Booth terminal unit

Execution terminal unit

Government Bond Trading Booth Monitoring terminal unit (Block Transaction)

Execution terminal unit

Name Products Trading Systems Stock Trading System All stocks, Preferred shares, Real estate investment Futures & Options Trading System TOPIX Futures, TOPIX Sector Indexes Futures, CB Trading System Convertible bonds, Bonds with Warrants, Warrants, Bond Trading Support Network System JGB, yen-denominated foreign bonds, municipal ToSTNeT Stocks and domestic convertible bonds on off-hours Information System Market Information System All TSE products, major products of four other Clearing System Clearing System All TSE products (*1) “Four other exchanges” includes Osaka, Nagoya, Fukuoka, Sapporo, and Over The Counter issues, supervised by Japan Securities Dealers Association.

9 MARKET

STOCK

Offices of TSE Trading Trading Systems Participants

Board & CRT for Stock Trading Price Display System

CB Trading System

Market Information System

Futures & Options Trading System TSE Trading Participant Market Information Systems

Information Vendors

Bond Network System Clearing System Media Information Systems

ToSTNeT

Release (replacement) trust, etc. Jan. 1982 (May 2000) TOPIX Options, Equity Options, JGB (Japanese Government Bonds) Futures, Options on JGB Futures. Apr. 1988 (Nov. 1998) Exchangeable Bonds, foreign convertible bonds. Dec.1989 (Mar. 2001) bonds, etc. Feb.1998 trading June 1998 exchanges, and OTC market. (*1) Sept.1974 (Nov. 1998) Oct.1953 (Oct. 1994)

10 STOCK

MARKET

COMPUTER TRADING

All TSE listed products have been traded via computer trading systems since the stock-trading floor was closed in April 1999. Regular trading participants enter all orders from their terminals or computer systems. Trading arrangements for the stock trading system are outlined below.

(1) Order Entry Trading participants enter orders from terminals installed in their offices or via their proprietary computer systems. Once orders are recorded in the stock trading system, order acceptance notices are displayed on the terminal or sent back to the trading participant computer systems.

(2) Execution The stock trading system executes orders automatically if they satisfy the matching rules.

(3) Trade Reports Once transactions have been completed the results are transmitted immediately to trading participant computer system terminals.

(4) Market Inquiries Trading participants receive market information via their terminals or computer systems.

(5) Market Supervision TSE monitors the market and supervises transactions for each product through a terminal in the TSE building.

(6) Connection with Market Information System Once finalized, transaction trade prices are automatically transmitted from the trading system to the TSE market information system. Information vendors provide subscribers with similar market data and additional information.

11 MARKET

STOCK

Margin Transactions Margin transactions are the purchase/sale or other transaction of securities effected on credit extended to the customer by a securities company.

(1) Margin Customers buying or selling stocks on margin must deposit warranty deposit (“Initial Margin”) equivalent to at least 30% of the transaction value or 300,000 yen (whichever is greater) with the securities company by noon of the trading day. When the deposited margin rate to the trading value is depleted below 20% due to price fluctuation, the customer must deposit additional margin to increase the rate to at least 20%.

(2) Two types of margin transactions: Standardized Margin Transactions and Negotiable Margin Transactions

Standardized Negotiable Lending Fee *regulated All conditions are negotiable Period of settlement 6 months Margin issues Selected by TSE All listing issues **Loan transactions May be used May not be used * Lending fee is determined in the securities finance company’s auction. ** Loan transactions are lending transactions between securities finance companies, which specialize in securities financing, and securities companies. (3) Margin issues for standardized margin transactions TSE selects as margin issues for standardized margin transactions those issues which meet all criteria based on the following: (1) number of outstanding shares (2) ratio of shares owned by the “special few” (includes the ten largest shareholders, persons having special interests in the issuer, and the issuer itself if it holds its own shares) (3) number of shareholders (4) trading volume (5) ratio of trading execution (6) business results.

Margin Transactions

Deposit of Margin Loan Transactions Securites Customers Companies Lend Money/ Deposit of Margin Securities

Lend Execute "regular" Money/ transactions Securities

Securities Finance Companies

Tokyo Stock Exchange, Inc.

12 STOCK

MARKET

Margin Transactions as Portion of Regular Transactions

Regular Transactions Margin Transactions Rate of Trading Trading Trading Trading utilization by C/A D/B Date Volume (A) Value (B) Volume (C) Value (D) individual % % 100 mil. shares ¥ bils. 100 mil. shares ¥ bils. Investors %

1994 1,688 174,485 263 24,001 15.6 13.8 39.9 1995 1,836 166,717 322 25,002 17.5 15.0 42.9 1996 1,995 202,692 339 28,763 17.0 14.2 40.9 1997 2,132 214,237 314 25,882 14.7 12.1 38.8 1998 2,202 165,037 418 24,003 19.0 14.5 36.8 1999 2,870 338,377 576 62,531 20.1 18.5 41.0 2000 3,170 438,515 553 69,635 17.4 15.9 36.9 2001 3,729 363,621 731 58,183 19.6 16.0 34.6 2002 3,778 333,471 764 54,818 20.2 16.4 36.5 2003 5,743 435,431 1,190 68,537 20.7 15.7 46.8

Jan. 317 21,365 65 3,004 20.5 14.1 50.1 Feb. 336 22,323 72 3,297 21.4 14.8 49.3 Mar. 343 22,938 67 3,123 19.5 13.6 49.3 Apr. 405 24,950 91 3,846 22.5 15.4 47.5 May 433 26,812 93 4,241 21.5 15.8 48.0 June 620 35,138 146 5,912 23.5 16.8 46.8 July 618 46,602 129 7,513 20.9 16.1 46.3 Aug. 577 40,120 124 6,441 21.5 16.1 45.5 Sept. 593 53,728 117 8,653 19.7 16.1 45.7 Oct. 628 61,957 131 10,841 20.9 17.5 46.4 Nov. 393 40,426 72 5,857 18.3 14.5 47.6 Dec. 480 39,072 83 5,809 17.3 14.9 45.3

Note: 1. Trading volume and value are combined selling and buying figures and include execution of rights for equity options. 2. Rate of utilization by individual investors is portion of standardized margin transactions that is trading value of individual investors (based on general trading participants with capital of 1 billion yen or more) (1st section and 2nd section combined).

13 MARKET

STOCK

Off-Hours Trading with off-hours trading for single-issue orders and Off-hours trading was introduced on November basket cross orders (except convertible bonds bas- 14, 1997 to facilitate cross trading for large block ket cross orders and TOPIX Futures orders). In the orders and basket orders. A trading price is restricted case of single issue trading the seller and buyer can within a certain range based on a price determined negotiate their terms of trade through the system. in the auction market. These trading sessions are In response to the diverse transaction needs of available for domestic stocks, ETFs, REITs, domes- various investors, especially those of individual in- tic convertible bonds, and TOPIX Futures. vestors, on August 7, 1998, TSE introduced In order to better facilitate off-hours trading, TSE ToSTNeT-2. This allows the execution of orders at established a new electronic trading system called TSE closing prices. ToSTNeT-1 (Tokyo Stock Exchange Trading Network System-1) on June 29, 1998. ToSTNeT-1 now deals

(As of end of March 2003)

Single Issue Trading and Basket Trading Trading on Closing Price (ToSTNeT-2) (ToSTNeT-1)

Product Domestic listed stocks and domestic listed convertible bonds

Trading unit (1)Single Issue Trading One trading unit or more One trading unit or more (2)Basket Cross Trading Transaction including 15 issues or more with trading value of 100 million yen or more

Trading hours 8:20 ~ 9:00 8:45 11:00 ~ 12:30 12:15 15:00 ~ 16:30 16:00 Orders are accepted from 8:20 to 16:00.

Price range (1)Single Issue Trading 8:45: 7% above or below the last price Closing price or VWAP on the previous formed in the auction market day 8:20 ~ 9:00 VWAP of the day before 12:15: (net commission) Closing price or VWAP of the morning 11:00 ~ 12:30 VWAP of the morning session on the trading day. session (net commission) 16:00: 15:00 ~ 16:30 VWAP of the day & Closing price on the trading day, or VWAP of the afternoon session (net VWAP of the afternoon session or of commission) the trading day. (2)Basket Cross Trading 5% above or below the trading value of the components with the caluculation based on the last prices from the auction market

Tick Size 0.0001 —

Transaction method (1)Single Issue Trading Closing Price Trading Cross trading or negotiation between Individual auction (cross trading is buyer and seller matched prior to other orders) (2)Basket Cross Trading VWAP Trading Cross trading Cross trading

Settlement date T+0 or T+3 T+3

Note: VWAP (volume-weighted average price) is calculated to 4 decimal places. 14 STOCK MARKET Clearing & Settlement Previously in Japanese securities markets, the and settlement operations but also standardized responsibility to clear and settle trades on an ex- clearing procedures, a unified access point for us- change had been left to each exchange. This sys- ers, and the introduction of a settlement guarantee tem, however, created inefficiencies within the system in accordance with global standards. wider Japanese domestic market. Seeking to elimi- In addition, to further increase convenience and nate these inefficiencies, all domestic stock ex- efficiency for market users, JSCC broadened its role changes in Japan as well as the Japan Securities as a clearing organization to also include trades con- Dealers Association (the body responsible for ducted on the TSE derivatives market on February JASDAQ operations) established in July 2002 a uni- 2, 2004. fied clearing organization to handle all cash prod- TSE utilizes the central counter-party (CCP) sys- ucts traded on Japanese securities markets. This tem and the clearing participant system for the new organization is called Japan Securities Clear- settlement of trading on its exchange. In the CCP ing Corporation (JSCC). system a clearing organization (JSCC) acts as the JSCC began operations for trade clearing of cash settlement counter-party to clearing participants for products for all domestic exchanges on January 14, all trades effected on TSE’s market, thereby guar- 2003. With this start, the Japanese securities in- anteeing settlement. This system eliminates the risk dustry has not only realized consolidated clearing of trade counterparty default.

Settlement through JSCC

Domestic Stocks Foreign Stocks Domestic CBs Overall Settled value Cleared Number of Cleared Number of Cleared Settled Total Daily Year volume settled volume settled volume volume average and stocks stocks Month (A) (B) (B)/(A) (C) (D) (D)/(C) (E) (F) (F)/(E) (mils. Shares) (mils. Shares) % (mils. Shares) (mils. Shares) % (¥ 100mils.) (¥ 100mils.) % (¥ 100mils.) (¥ 100mils.) 2003 473,676 139,159 29.4 6.1 4.1 67.5 13,149 7,703 58.6 261,561 1,090 Jan. 24,432 6,636 27.2 0.4 0.3 71.2 963 550 57.1 11,036 788 Feb. 34,402 9,282 27.0 0.4 0.3 78.0 1,283 742 57.9 14,973 788 Mar. 33,197 9,588 28.9 0.5 0.3 66.0 1,444 808 56.0 20,322 1,016 Apr. 40,070 10,674 26.6 0.5 0.4 73.1 1,165 728 62.5 15,618 744 May 39,057 10,778 27.6 0.3 0.2 68.9 1,254 704 56.2 15,685 747 June 49,647 13,907 28.0 0.6 0.4 66.5 1,093 651 59.6 21,959 1,046 July 49,301 14,440 29.3 0.5 0.3 57.1 1,451 839 57.9 26,111 1,187 Aug. 42,282 12,737 30.1 0.3 0.2 73.6 983 556 56.6 24,527 1,168 Sept. 46,358 14,489 31.3 0.4 0.3 71.1 1,326 861 64.9 34,789 1,739 Oct. 47,385 14,768 31.2 0.5 0.3 56.8 1,037 553 53.4 29,506 1,341 Nov. 30,958 10,080 32.6 0.4 0.3 71.7 559 331 59.2 20,300 1,128 Dec. 36,581 11,774 32.2 0.7 0.4 63.5 587 375 63.9 26,729 1,273

Notes: 1. Cleared volume is the total amount of transactions on each market (excluding “cash” transactions and “when issued” transactions) and loan transactions; 2. The number of settled stocks for domestic stocks includes “when issued” transactions, off-auction transactions, and loan transactions; 3. The daily average for overall settled value is calculated by using the number of settlement days. 4. Figures for year 2003 and January 2003 are for period starting January 14, 2003 (starting date of JSCC’s operation).

15 MARKET

STOCK

Under the clearing participants system, four take place between JSCC’s account and the clear- types of clearing qualifications are available based ing participant’s account at Japan Securities Deposi- on asset classes: Cash Products, Government Bond tory Center, Inc (JASDEC). Transfer of funds in settle- Futures and Futures Options, Stock Index Futures ment is carried out between the clearing participant’s and Options, and Equity Options. Participants who bank account and JSCC’s bank account at either the hold these qualifications are called clearing partici- Bank of Japan or a bank it designates as a fund pants and act as an actual party to a trade when settlement bank. conducting settlement with the clearing organiza- Delivery versus payment (DVP) settlement is uti- tion. lized via a netting basis in JSCC for all regular traded Non-clearing participants conduct settlement for domestic stocks and CBs. In netting, only the net trades they have effected on TSE’s market with a amount of securities bought and sold and net funds designated clearing participant, and that clearing par- arising from these transactions are transferred be- ticipant then effects final settlement of the trade tween accounts. This system allows for efficient with the clearing organization. use of both securities and funds as well as simpli- Settlement of “regular” traded domestic stocks fied settlement management. takes place on T+3 at TSE. DVP Settlement is also utilized for Japanese The payment and receipt in settlement of do- government bond transactions through the Bank of mestic stocks and domestic convertible bonds (CB) Japan’s financial network system (BOJ-NET).

Cross-market Clearing Organization (JSCC)

TSE Osaka SE Nagoya SE Fukuoka SE Sapporo SE Over-the-counter Transactions Transactions Transactions Transactions Transactions market (JASDAQ) (Cash & (Cash) (Cash) (Cash) (Cash) Transactions Derivatives) � � � � (Cash) � � Matching Matching Matching Matching Matching Matching

JSCC

Undertaking

Agency Clearing Netting Participants Market •CCP Function participants other than Principal Clearing •Settlement Settlement matching clearing Guarantee Participants participants Scheme (non-clearing Account transfer instructions Principal Clearing participants) Participants

DVP Settlement (Link between settlement of securities and that of funds)

Central Securities Depository BOJ/ Fund Settlement Bank

Clearing Clearing Clearing Clearing Participant JSCC’s A/C Participant Participant JSCC’s A/C Participant A/C A/C Bank A/C Bank A/C

16 STOCK

MARKET Clearing, Settlement & Custody of Foreign Stocks 1.Clearing & Settlement 2. Custody Services In January 2003, the Japan Securities Clearing The shareholder service agents (banks) and the Corporation (JSCC) started its business and acts as dividend paying banks are designated by the for- the cross-market clearing organization for cash trans- eign listed companies at the time of TSE listing. actions in Japan, including foreign stocks and con- When a foreign listed company announces the vertible bonds on all of the stock exchanges and payment of dividend or allotment of new shares to the OTC market. its shareholders, JSSC receives these on behalf of For the settlement of foreign stocks listed on the beneficial shareholders in Japan. The dividends TSE, Japan Securities Settlement & Custody, Inc. are remitted by the dividend paying banks and the (JSSC) plays a key role as a central depository and shareholder service agents. The new shares are al- conducts settlement through the book-entry-trans- lotted by JSSC to its participants’ accounts. These fer-system. transactions are conducted based on the beneficial Under the system, the share certificates of the shareholders’ list which is compiled by shareholder beneficial shareholders are deposited by the custo- service agent in cooperation with JSSC. dian in the name of JSSC, in the home country of In the case of voting rights, the beneficial share- listed companies, and the trading of foreign listed holders give the voting instructions to the share- shares on TSE are settled by debiting or crediting holder service agent. Then JSSC exercises the in- within the accounts of JSSC participants. structions through the custodian or standing proxy agent in the listed companies’ home country. Moreover, if the payment or allotment is subject to Japanese Income Tax Law, JSSC is responsible for managing and collecting withholding taxes related to its holdings of listed foreign shares.

Shareholder Service and Dividend Paying Systems

Home Market Corporate Action Processing

Listed Foreign Company

Exercise Notices a b Custodian

Shareholder Dividend Service Agent JSSC Paying Bank

JSSC Participants

e Dividends Beneficial Shareholders Instruction to voting rights Tokyo Market a. Service Agreement b. Paying Agreement c. Custody Agreement d. Regulations of JSSC e. Agreement concerning the opening of a foreign stock trading account

17 STOCK PRICE TRENDS

TOPIX (Tokyo Stock Price Index)

STOCK PRICE

On July 1, 1969, Tokyo Stock Exchange intro- and new share issues, either through public offer- TRENDS duced TOPIX (Tokyo Stock Price Index), a compos- ing or through rights offerings to shareholders. ite index of all the common stocks listed on the First No adjustment is made, however, in case of Section of TSE, to provide a comprehensive mea- stock splits a bonus issue, a stock dividend or a de- sure of the market trend for investors who may be crease in paid-in capital, since such corporate ac- interested in general market price movements. tions do not affect the current market value. This composite index is supplemented by The formula for adjusting the base market value subindices for each of 33 industry groups and 3 cat- is as follows: egories (large, medium and small), in which compa- New Market Value (New Basis) New Base Value = Old Base Value X nies listed on the First Section are classified by their Old Market Value (Old Basis) size (in terms of the number of listed shares). In addition, TSE has computed a composite in- For example, suppose that on March 1, 19XX, dex called "Second Section Stock Price Index" cov- the base value and the market value were ¥8,000 ering all stocks listed on its Second Section since billion and ¥16,000 billion, respectively. The index 16,000 August 18, 1969. was 200.00 ( 8,000 X100). On February 1, 1999, TSE also began publishing On March 2, 19XX, the Exchange lists XYZ the dividend-included TOPIX, its sub-indices and company's additional 100 million shares issued TOPIX New Indices. through a public offering. The previous day's closing price of the company's stock was ¥2,000. Thus, Computation Method for Indices the market value on March 2 increases by ¥200 bil- The indices are basically a measure of the lion (¥2,000 X 100 million shares), to ¥16,200 bil- changes in aggregate market value of TSE common lion, which represents the new market value. There- stocks. The base for each of the indices is the ag- fore, gregate market value of its component stocks as at 16,200 New Base Value = 8,000 X = ¥8,100 billion the close on January 4, 1968, the first trading day 16,000 of that year. The aggregate market value is calcu- is used as the base market value for the calculation lated by multiplying the number of listed shares of of the index on March 2. each component stock by its price and totaling the products derived therefrom. Frequency of Index Computation In calculating the indices, the base market value All indices except TOPIX have been computed is used as the denominator of a fraction whose nu- and published every minute since August 4, 1997. merator represents the current aggregate market TOPIX has been calculated every minute since May value. The fraction so obtained is multiplied by 100 23, 1987. (the index value on the base date) and reduced to a The changes in the indices from the previous decimal figure to the nearest one-hundredth for each day are indicated both in index value and in percent- of the indexes computed. age. Historically, TOPIX has been available on a daily The formula is as follows: closing basis from May 16, 1949, while the subindices are available since January 4, 1968, the base Current Market Value Current index = X 100 date. The Second Section Stock Price Index has Base Market Value been available on a daily closing basis from Octo- For the purpose of maintaining continuity of the ber 2, 1961, when the Second Section of the TSE indices, the base market value is adjusted from time commenced. to time to reflect only price movements resulting from auction market activity and eliminate the effects of other factors, such as new listings, delistings

Note: The TSE market for domestic stocks is divided into three sections - the First Section, the Second Section, and Mothers. In general, a newly listed company's stock is assigned to the Second Section. Stocks traded in the Second Section are reviewed at each issuing company’s business year end to determine whether they satisfy assignment rules for the First Section. If they do, they are moved from the Second Section to the First. Conversely, where a First Section-assigned stock falls within the purview of another set of rules for reassignment of stocks from the First Section to the Second, the stock is reassigned in that way.

18 TOPIX (Tokyo Stock Price Index) (Daily Closing 2003)

January 4, 1968=100

TRENDS

STOCK PRICE Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec.

1 788.96 〇 799.31 〇 916.26 942.41 1,027.01 1,029.94 1,020.52

2 797.56 804.62 〇 846.55 945.24 1,028.91 1,057.24 1,023.50

3 837.7 825.63 793.68 849.42 952.44 1,033.28 1,066.86 1,016.07

4 844.26 828.05 795.55 850.94 948.67 934.52 1,030.23 ◎ 1,070.01 1,023.43

5 845.29 822.81 859.21 925.47 1,026.21 1,063.31 1,019.42

6 860.07 839.95 816.22 821.41 869.61 922.57 1,068.84 1,035.57

7 853.93 839.11 796.17 ◎ 810.58 822.85 967.04 〇 915.91 1,075.01 1,045.15

8 839.55 802.62 814.74 976.3 917.47 1,027.94 1,054.75 995.28

9 839.33 801.17 823.52 874.36 ◎ 979.38 1,045.71 1,057.54 997.39

10 837.7 842.69 784.52 792.42 869.56 974.14 1,043.98 1,073.88 1,033.37 〇 980.58

11 〇 770.62 782.25 874.7 945.78 928.52 1,023.93 1,007.31 990.93

12 857.23 782.36 829.26 875.71 934.59 1,042.64 1,006.16 998.7

13 853.01 778.52 829.2 881.3 951.76 1,018.50

14 845.9 858.05 786.06 775.61 832 954.03 965.94 1,087.31 1,006.77

15 855.66 788.24 820.08 954.83 964.78 1,080.30 1,022.95

16 856.3 788.96 819.17 872.53 949.27 1,062.07 1,090.85 1,004.82

17 859.25 ◎ 861.7 777.21 789.5 885.18 929.59 1,072.57 1,094.59 971.89 989.95

18 856.7 783.56 790.72 893.58 933.1 976 ◎1,075.73 973.44 995.57

19 853.59 789.08 810.49 895.65 990.64 1,070.03 〇 953.19 1,008.61

20 853.9 849.35 807.48 814.25 898.73 1,001.08 ◎ 1,105.59 971.69

21 863.64 840.11 801.79 809.8 ◎1,009.58 1,093.31 974.45

22 854.06 787.49 816.06 928.18 1,004.20 1,043.20 1,073.75 1,015.26

23 ◎ 865.43 789.35 826.18 ◎ 904.32 941.26 〇 1,017.03

24 861.36 838.96 ◎ 831.43 794.45 882.83 945.27 1,043.66 1,024.99 1,011.96

25 819.18 812.29 782.03 884.53 945.28 997.8 1,017.39 988.11 1,012.93

26 〇 818.38 821.43 826.97 887.86 1,001.74 1,021.06 1,002.02 1,018.47

27 850.03 819.2 823.46 814.86 903.06 1,000.67 1,032.88 1,006.11

28 841.12 818.73 817.92 〇 773.1 822.31 959.69 993.51 1,045.18 999.75

29 825.72 834.12 958.18 1,002.01 〇1,010.82 1,057.14 1,026.24

30 825.16 796.56 ◎ 837.7 903.44 944.31 1,018.80 1,053.85 ◎ 1,043.69

31 〇 821.18 788 939.4 1,043.36

High 865.43 861.7 831.43 810.58 837.7 904.32 979.38 1,009.58 1,075.73 ◎ 1,105.59 1,070.01 1,043.69

Low 821.18 818.38 〇 770.62 773.1 799.31 846.55 916.26 915.91 1,010.82 1,017.03 953.19 980.58

Ave. 847.86 841.75 802.14 791.55 820.42 879.19 949.44 965.77 1,038.26 1,062.92 1,007.04 1,010.30

Note: ◎ Highest in month (year) 〇 Lowest in month (year)

19 TOPIX Subindices

STOCK PRICE

TOPIX Subindices by Company Size (First Section) TRENDS

Jan. 4, 1968 = 100 2,500 Large

2,000

Small

1,500 TOPIX

1,000 Medium

500

1993 1995 1997 1999 2001 2003

TOPIX Subindices by Company Size

End of Large Medium Small 1997 1,232.84 840.30 1,046.63 1998 1,122.42 859.92 1,023.05 1999 1,826.04 1,133.23 1,222.75 2000 1,341.89 930.45 1,078.20 2001 1,069.99 786.28 1,035.10 2002 866.33 694.78 934.61 2003 1,029.21 900.23 1,212.92

Jan. 869.63 708.70 960.73 Feb. 860.17 727.53 997.64 Mar. 817.18 710.57 994.27 Apr. 802.04 733.27 1,043.39 May 830.98 759.63 1,102.47 June 892.10 800.71 1,168.64 July 965.79 849.29 1,210.28 Aug. 981.35 876.27 1,218.76 Sept. 1,057.61 920.01 1,284.25 Oct. 1,082.62 947.06 1,289.16 Nov. 1,024.49 909.30 1,225.45 Dec. 1,029.21 900.23 1,212.92 Notes: Large: stocks of companies with 200 million or more shares listed Medium: stocks of companies with 60 million or more shares but less than 200 million shares listed Small: stocks of companies with less than 60 million shares listed

20 Changes in TOPIX Subindices by Industrial Groups (First Section, 2003)

TRENDS

STOCK PRICE Up

Stock Price Indices Percent Change Point Change Industry from End of 2002 from End of 2002 End of 2002 (A) End of 2003 (B) (B-A/A) (B-A) Iron & Steel 262.54 483.49 +84.15 +220.95 Marine Transportation 332.10 589.85 +77.61 +257.75 Securities & Commodity Futures 443.27 702.75 +58.53 +259.48 Insurance 496.78 747.06 +50.38 +250.28 Nonferrous Metals 467.70 696.93 +49.01 +229.23 Banks 155.50 231.49 +48.86 +75.99 Wholesale Trade 411.56 607.47 +47.60 +195.91 Glass & Ceramics Products 521.19 736.98 +41.40 +215.79 Textiles & Apparels 332.92 458.95 +37.85 +126.03 Machinery 507.42 699.45 +37.84 +192.03 Precision Instruments 1,970.74 2,677.17 +35.84 +706.43 Real Estate 478.09 639.88 +33.84 +161.79 Warehousing & Harbor Transportation 773.46 1,027.17 +32.80 +253.71 Construction 406.28 524.21 +29.02 +117.93 Other Financing Business 526.28 662.11 +25.80 +135.83 Mining 282.54 352.00 +24.58 +69.46 Metal Products 706.51 877.90 +24.25 +171.39 Electric Appliances 1,317.45 1,624.58 +23.31 +307.13 Information & Communication 1,584.42 1,953.02 +23.26 +368.60 Transportation Equipment 1,369.96 1,649.40 +20.39 +279.44 Chemicals 710.27 853.72 +20.19 +143.45 Pulp & Paper 543.91 646.98 +18.94 +103.07 Oil & Coal Products 807.04 927.48 +14.92 +120.44 Air Transportation 429.56 493.27 +14.83 +63.71 Services 789.05 903.20 +14.46 +114.15 Foods 573.99 645.80 +12.51 +71.81 Other Products 1,177.70 1,322.97 +12.33 +145.27 Retail Trade 575.65 626.08 +8.76 +50.43 Rubber Products 1,063.52 1,118.29 +5.14 +54.77 Electric Power & Gas 603.86 633.22 +4.86 +29.36 Land Transportation 1,099.81 1,148.50 +4.42 +48.69 Pharmaceutical 1,293.56 1,308.04 +1.11 +14.48

Down

Stock Price Indices Percent Change Point Change Industry from End of 2002 from End of 2002 End of 2002 (A) End of 2003 (B) (B-A/A) (B-A) Fishery, Agriculture & Forestry 240.58 233.42 -2.97 -7.16

21 TOPIX New Index Series

STOCK PRICE

1. Organization TRENDS T O TOPIX Core 30 T P The 30 most liquid and highly market capitalized shares. 33.28% O I P X T 1 TOPIX Large 70 O I 56.93% X 0 After the Core 30, the 70 most liquid and highly market capitalized shares. P 5 0 I T 0 X O 0 TOPIX Mid 400 1 88.27% P Excluding TOPIX 100 stock, these are the remaining shares in the TOPIX 500. 0 I 0 X 0 TOPIX Small 96.12% The remaining stocks, outside the TOPIX 500 stocks and non-eligible stocks.

Non-eligible stocks New companies which have not been listed on the TSE for 6 months or more, out of the companies listed on the 1st section of the TSE as of the end of July.

Note: Market capitalization as % of total market capitalization of TSE first section (as of the end of December 2003).

2. Outline of Indices Each index is a weighted average index of the The component stocks of the new indices are market value of component stocks (identical to determined based on market capitalization and li- TOPIX) and is set at 1,000 points as of April 1, 1998 quidity. In order to accurately reflect the market, the (index calculation base date). component stocks will be revised every Septem- Index formula and adjustment in the base mar- ber. ket value are the same as those of TOPIX. < TOPIX Core 30 > (As of end of December 2003) Code Code Issue Industry Issue Industry No. No. 4063 Shin-Etsu Chemical Chemicals 7751 CANON Electric Appliances 4502 Takeda Chemical Industries Pharmaceutical 7974 Nintendo Other Products 4901 Fuji Photo Film Chemicals 8183 SEVEN-ELEVEN JAPAN Retail Trade 6501 Hitachi Electric Appliances 8264 ITO-YOKADO Retail Trade 6502 TOSHIBA Electric Appliances 8306 Mitsubishi Tokyo Financial Group Banks 6752 Matsushita Electric Industrial Electric Appliances 8307 UFJ Holdings Banks 6753 Sharp Electric Appliances 8316 Sumitomo Mitsui Financial Group Banks 6758 SONY Electric Appliances 8604 Nomura Holdings, Inc Securities & Commodity Futures 6902 DENSO Transportation Equipment 8766 Milea Holdings Insurance 6963 ROHM Electric Appliances 9020 East Japan Railway Land Transportation 6971 KYOCERA Electric Appliances 9432 NIPPON TELEGRAPH AND TELEPHONE Information & Communication 6981 MURATA MANUFACTURING Electric Appliances 9433 KDDI Information & Communication 7201 NISSAN MOTOR Transportation Equipment 9437 NTT DoCoMo Information & Communication 7203 TOYOTA MOTOR Transportation Equipment 9501 The Tokyo Electric Power Electric Power & Gas 7267 HONDA MOTOR Transportation Equipment 9503 The Kansai Electric Power Electric Power & Gas

22 Stock Price Averages and Other Key Indices Arithmetic Stock Price Average Stock Price Averages (First Section) The arithmetic stock price average, which ex- (yen) During Arithmetic Stock Weighted Stock

TRENDS press an average stock price of the market, is cal- Price Average Price Average STOCK PRICE culated by dividing the total stock price by the total number of stocks traded in the market. 1997 547.42 602.05 1998 534.29 571.29 1999 694.04 889.23 Weighted Stock Price Average 2000 525.58 602.70 The weighted stock price average is calculated 2001 427.56 449.94 2002 324.66 295.08 by dividing the total market value of listed stocks by 2003 399.65 351.13 the number of shares listed in the market. Jan. 318.09 286.11 Feb. 326.40 284.94 Mar. 321.08 273.36

Apr. 328.82 275.41 May 346.22 288.90 June 369.85 311.14

July 377.96 323.65 Aug. 391.71 343.16 Sept. 398.40 345.12

Oct. 404.72 351.88 Nov. 383.80 334.86 Dec. 399.65 351.13

Average Price Earnings & PER • PBR (First Section) Price Book Value Ratios

The price earnings ratio (PER), calculated by di- End of PER PBR viding the price per share by annual after-tax profit 1997 37.6 1.2 per share, is a yardstick indicating how high the 1998 103.1 1.2 current share price is against per share earnings. 1999 - 1.6 2000 170.8 1.2 The price book value ratio (PBR) is calculated 2001 240.9 1.0 by dividing the price per share by shareholders' eq- 2002 - 0.9 uity (net assets) per share and indicates how high 2003 614.1 1.2 the current share price stands against shareholders' equity per share. Jan. - 0.9 The PER indicates the market price level from Feb. - 0.9 Mar. - 0.9 the standpoint of earnings, whereas the PBR indicates the price level from the asset value point of Apr. - 0.9 view. May - 1.0 The formulas for PER and PBR are as follows: June 161.6 1.1

July 158.2 1.1 Aug. 336.6 1.2 Sept. 305.0 1.2 Arithmetic Stock Price Average Ave. PER = Oct. 296.8 1.2 Simple Average of After-tax Earnings Nov. 283.9 1.2 per Share Dec. 614.1 1.2

Arithmetic Stock Price Average Note: PER is not calculated if a simple average of after-tax Ave. PBR = earnings per share is minus. Simple Average of Shareholders' Equity per Share 23 Average Dividend Yields STOCK PRICE Dividend Yields TRENDS Yields on stocks, obtained by dividing annual (First Section Stocks) cash dividends by the stock price, provide a yard- During Simple Average (%) stick for measuring the rate of return in the form of 1997 0.92 dividends from stock investment. 1998 1.15 The simple average yields and the weighted av- 1999 0.99 erage yields are often used as general indicators of 2000 0.91 the dividend return of the stock market. 2001 1.14 When seen from a long-term point of view, the 2002 1.29 2003 1.27 simple average yields of all First Section stocks (monthly average) have decreased almost consis- Jan. 1.39 tently since 1975 and reached 0.45% in 1989. In Feb. 1.37 recent years, the yields have shown a slight upward Mar. 1.41 trend. Apr. 1.38 May 1.33 June 1.26

July 1.23 Aug. 1.22 Sept. 1.15

Oct. 1.12 Nov. 1.18 Dec. 1.18

Average Dividend Yields (First Section Stocks)

% 1.6

1.4

1.2

1.0

0.8

0.6

0.4

0.2 1989 1991 1993 1995 1997 1999 2001 2003

24 Tokyo Market Information Service

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Reliable, Timely & Direct Who else can provide more accurate and timely information than TSE? Through TMI, you can access TSE’s repository of information directly. Comprehensive but We know what you need in your business. Our information is comprehen- Succinct sive but succinct so you don’t get lost in a sea of information. English Available Both Corporate Action Information and TOPIX Index Information are provided in English. Convenient The service is supported by various useful functions, such as CSV download Functions historical data search.

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Corporate Action Information Service The service is ideal for custody banks and back-offices of broker-dealers, who need information on dividends, bonus issues, mergers, TOBs and General Meetings for all public companies in Japan. Prepare yourself for the new ISO15022 environment. The file format for the Push service and the Data Feed Service is based on ISO15022-message type.

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25 LISTING

LISTING REGULATIONS TSE regulations on listing of securities stipulate Assignment of Stocks to Sections basic matters regarding listed securities to ensure Domestic stocks are assigned to either the First fair and orderly transactions and protection of in- Section or the Second Section. In addition, some vestors. The following outlines the major elements domestic stocks and foreign stocks of emerging of the regulations. companies are assigned to another section, called

"Mothers." Newly listed domestic stocks are as- LISTING Initial Listing signed to the Second Section except under certain Companies applying for initial listing of their se- conditions. curities are required to meet certain numerical list- As for Second Section stocks, TSE examines at ing criteria. TSE conducts a rigorous examination of the end of each business year of the issuing com- an applicant company satisfying these criteria, with panies applying for listing on the First Section particular emphasis on whether or not fair price for- whether or not they meet assignment criteria to mation and appropriate market liquidity are main- move from the Second Section to the First Section. tained and whether public interest and protection Second Section stocks that quality are assigned to of investors are properly secured. the First Section. Conversely, if First Section stocks TSE decides whether to allow the securities to fall under any of the reassignment criteria, TSE trans- list based on comprehensive judgment of these fac- fers them to the Second Section. tors. Listing Fees Supervision of Listed Companies Listed companies are required to shoulder part TSE has regulations for appropriate supervision of various costs for the operation of TSE's business, of listed securities. These standards require listed including the supervision of listed securities, in the companies to give immediate notice to TSE of facts form of listing fees. having material impact on investment judgement, The listing fees consist of the fee paid upon ini- such as suspension of banking accounts or busi- tial listing of securities or upon additional listing of ness activities. new shares and TSE's annual listing fees paid in Companies are also required to file various docu- two installments per year. Rates for each are stipu- ments with TSE on matters concerning rights of lated in TSE's regulations. shareholders, such as issuance of new shares and closure of the stockholder register. TSE obliges listed companies to release certain facts it deems necessary for public disclosure to investors at an appropriate time and in an appropriate way.

Delisting Disqualification of continued listing is stipulated in the delisting criteria. Where, for example, market liquidity of a listed security has become too low to assure fair price formation, or where a listed company has gone bankrupt, the delisting criteria come into play. If TSE finds it necessary, securities to be delisted remain listed for a certain period of time before they are finally omitted from the list.

26 Numerical Criteria for Listing (Domestic) (As of end of March 2004)

Application A company must meet the following criteria (1)~(6)and (9), and also meet the following criteria (7) or (8)

(1)No. of Shares to be Listed 4,000 units or more

(2)No. of Shares Held by "Special Few" 75% or less of the number of shares to be listed by the time of listing LISTING (i.e., 10 Largest Shareholders, Per- Provisional Criteria: sons Having Special Interest in the (1) 80% or less of the number of shares to be listed by the time of Issuer & the Issuer if the issuer also listing, and also 75% or less by the end of the first business year holds shares) after the listing, if the number of shares is 60,000 units or less (2) 87.5% of the number of shares to be listed minus 7,500 units or less, if the number of shares to be listed is more than 60,000 units and less than 100,000 units (3) 80% or less of the number of shares to be listed, if the number of shares to be listed is more than 100,000 units

(3)No. of Shareholders Holding 1 unit If the number of shares to be listed is: or More (Excluding "Special Few") (1) Less than 10,000 units: 800 or more (2) 10,000 units or more but less than 20,000 units: 1,000 or more (3) 20,000 units or more: 1,200 plus 100 per each 10,000 units in excess of 20,000 units, up to 2,200 Provided that the recent share price per 1 unit is: (1) ¥100,000 or more but less than ¥500,000, half the number of shareholders required by the criteria above, 800 or more (2) less than ¥100,000, 800 or more

(4)Market capitalization of shares listed ¥2 billion or more

(5)Years elapsed since incorporation 3 years or more with continued business operation

(6)Shareholders' Equity ¥1 billion or more

(7)Pre-tax Profit Following (a or b) a. Annual total for each of last two years: 1st year: ¥100 million or more, and 2nd (last) year: ¥400 million or more b. Annual total for each of last three years: 1st year: ¥100 million or more, 3rd (last) year: ¥400 million yen or more, and total for the three years: ¥600 million or more

(8)Total market capitalization ¥100 billion or more, provided that the previous year's sales surpass ¥10 billion.

(9)Financial records a. There should be no false statements in the applicant's financial statements for the 2 most recent fiscal years (or for the 3 most recent fiscal years, in cases where neither the criteria (7)a nor the criteria (8) are met). b. The opinion given by a certified public accountant, in the audit reports, should be 'fair' for the 2 most recent fiscal years (or for the 3 most recent fiscal years, in cases where neither the criteria (7)a nor the criteria (8) are met). c. The auditor's opinions should be non-qualified fair in principle for the most recent fiscal year.

Note: 1 unit is the minimum amount of stock shares with 1 voting right.

27 Numerical Criteria for First Section Assignment (Domestic) (As of end of March 2004) Application A company must meet the following criteria (1)~(6) and (9), and also meet the following criteria (7) or (8) (1)No. of Shares Listed 20,000 units or more

(2)No. of Shares Held by 70% or less of the number of shares to be listed. LISTING "Special Few" as of End of Provisional Criteria; Last Business Year (1) 92.5% of the number of shares to be listed minus 22,500 units or less, if the number of share to be listed is more than 100,000 units and less than 180,000 units (2) 80% or less of the number of shares to be listed, if the number of share to be listed is more than 180,000 units (3)No. of Shareholders Hold- If the number of shares listed is: ing 1 unit or More (Exclud- (1) Less than 30,000 units: 2,200 or more ing "Special Few") as of (2) 30,000 units or more but less than 200,000 units: 2,300 plus 100 for End of Last Business Year each 10,000 units, or more (3) 200,000 units or more: 4,000 or more plus 100 for each 20,000 units, or more Provided that the recent share price per 1 unit is: (1) ¥100,000 or more but less than ¥500,000, half the number of shareholders required by the criteria above, 2,200 or more (2) less than ¥100,000, 2,200 or more (4)Average Monthly Trading For each period of last 3 months and preceding 3 months: 200 units or Volume more (5)Market capitalization of ¥ 4 billion or more shares listed (6)Shareholders' Equity ¥ 1 billion or more (7)Pre-tax profit Following (a or b) a. Annual total for each of last two years: First year: ¥100 million or more, and Second (last) year: ¥400 million or more b. Annual total for each of last three years: First year: ¥100 million or more, Third (last) year: ¥400 million yen or more, and total for the three years: ¥600 million or more (8)Market capitalization ¥ 100 billion or more, provided that the previous year's sales surpass ¥10 billion (9)Financial records a. There should be no false statements in the applicant's financial statements for the 5 most recent fiscal years. b. The opinion given by a certified public accountant, in the audit reports, should be 'fair' for the 5 most recent fiscal years.

Numerical Criteria for Delisting (Domestic) (As of end of March 2004) Application In case of falling under any of the following criteria No. of Shares Listed Less than 4,000 units No. of Shares Held by "Special If the number of shares held by the "special few" Few" (1) More than 75% of the number of shares listed (Provisionally 80%) as of the end of last 2 business years (2) More than 90% of the number of shares listed unless predetermined document aren't submitted No. of Shareholders Holding 1 If the number of shares listed is: unit or More (Excluding "Spe- (1) Less than 10,000 units: Less than 400 cial Few") as of Each End of (2) 10,000 units or more but less than 20,000 units: Less than 600 Last 2 Business Years (3) 20,000 units or more: Less than 1,000 plus 100 for each 10,000 units in excess of first 20,000 units, up to 2,000 Provided that the recent share price per 1 unit is: (1) ¥100,000 or more but less than ¥500,000, half the number of shareholders required by the criteria above, 400 or more (2) less than ¥100,000, 400 or more Trading Volume (1) For last 1 year: Average monthly trading volume: less than 10 units, or (2) No trades during last 3 months Market capitalization Less than ¥1 billion during last 4 months (or during last 10 months if predetermined document are submitted) Liabilities Excess liabilities continued for last 2 business years

28 Listing Fees (Domestic) (As of end of April 2004)

Classification Fees

Stocks Initial Listing Fee (1) The stocks assigned to the First Section at the time of listing: ¥15 million per issuer (2) The stocks assigned to the Second Section at the time of listing: ¥12 million per issuer LISTING If public offering is made at the time of listing, in addition to initial listing fee, the following additional fee must be paid. (1) 0.09% of the total paid-in value of newly-issued shares offered (2) 0.01% of the total paid-in value of secondary offering (public offering previously issued shares held by shareholders for sale)

A Fee of (1) At the time of issue: Additional Share 0.01% of the total paid-in value issued or listed (2) At the time of additional share listing: 0.08% of the total paid-in value

Annual Listing Annual listing fee is as follows: Fee 1. TDnet fee: ¥120,000 2. Fee charged in accordance with market capitalization: a. First Section market capitalization of: (1) ¥5 billion or less ¥960,000 (2) more than ¥5 billion-¥25 billion ¥1,680,000 (3) more than ¥25 billion-¥50 billion ¥2,400,000 (4) more than ¥50 billion-¥250 billion ¥3,120,000 (5) more than ¥250 billion-¥500 billion ¥3,840,000 (6) more than ¥500 billion ¥4,560,000 b. Second Section market capitalization of: (1) ¥5 billion or less ¥720,000 (2) more than ¥5 billion-¥25 billion ¥1,440,000 (3) more than ¥25 billion-¥50 billion ¥2,160,000 (4) more than ¥50 billion-¥250 billion ¥2,880,000 (5) more than ¥250 billion-¥500 billion ¥3,600,000 (6) more than ¥500 billion ¥4,320,000

Preferred Stocks Initial Listing Fee 0.045% of the amount of the issuing price multiplied by the total number of shares listed

Annual Listing Market capitalization of: Fee (1) ¥5 billion or less ¥600,000 (2) more than ¥5 billion-¥25 billion ¥780,000 (3) more than ¥25 billion-¥50 billion ¥1,140,000 (4) more than ¥50 billion-¥250 billion ¥1,500,000 (5) more than ¥250 billion-¥500 billion ¥1,860,000 (6) more than ¥500 billion ¥2,220,000

Subscription Initial Listing Fee If the amount of issuing price multiplied by the number of addi- Rights tional shares which will be issued by exercise of the right is: (1) ¥5 billion or less: One half of the amount derived by applying the formula for "Additional Share Listing" above or ¥170,000, whichever smaller (2) More than ¥5 billion; ¥340,000

Note: Japanese consumption tax will be added to the above fees.

29 Mothers Listing Criteria for Mothers (As of end of March 2004)

Distribution Public Offering A primary offering or a combination of a primary offering and a secondary offering of at least 1,000 trading units of shares must take place at the time of listing, at least 500 units of which need be in a primary offering.

LISTING Shareholders At least 300 additional shareholders who should hold at least 1 unit of the share (excluding directors, affiliated companies, other special interest par- ties and the company if the company also holds shares) must be made by the public offering at the time of listing.

Market Capitalization of The estimated market value for the time of listing must be at least ¥1,000 shares listed million (estimated number of shares to be listed x public offering price.)

Sales The applicant's core business must be effectively operational in terms of sales by the day preceding the application.

Financial Records a. There should be no false statements in the applicant's financial statements. b. The opinion given by a certified public accountant or equivalent, in the annual and mid-term audit reports attached to the Securities Report for Listing Application, should be given as 'fair' and 'valid accounting information' respectively. c. The auditor's opinions should be non-qualified fair in principle for the most recent fiscal year.

Other Entrustment of sharehandling service agency, non-restriction of share transfer, etc.

Delisting Criteria for Mothers (As of end of March 2004)

Distribution of Shareholders There have been less than 150 shareholders as of the end of last 2 business years.

Shareholders' Equity Liabilities exceeding asset for the past 2 financial years. However, this does not apply to the first 3 financial years after listing.

Trading Volume The average monthly trading volume in recent 1 year is less than 10 trading units of shares or no transactions have been made for three con- secutive months.

Sales Record Sales Record for last business year (excluding the business year in which a company has made a listing application) is less than ¥100 million (excluding cases in which ordinary profits are recorded).

Market Capitalization Less than ¥500 million during last 4 months (or during last 10 months if predetermined document are submitted).

Other Suspension of bank account, bankruptcy, etc.

30 Listing Examination for Mothers (As of end of March 2004)

Disclosure (1) whether listing application documents comply with corporate disclosure rules; whether the documents detail corporate profile, risk factors and other information material to investment decisions (2) appropriateness of accounting system (3) appropriateness of disclosure concerning finance activity within

LISTING corporate group (4) management & timely disclosure of corporate information (5) disclosure of quarterly business results

Sound Management business is conducted in a fair & true manner; no unfavourable transactions with any specific party

Subsidiary Listing Rule (1) whether parent company is not forcing or encouraging unprofitable transactions (2) whether conditions of transactions with parent are not obviously unusual (3) whether the company holding majority voting rights is a listed company, or one which has a history of regular disclosure; not applicable if the business relationship is loose, and the shareholding is an investment, not a means to control the applicant’s business activities

Other any other matters deemed necessary by TSE for investor protection and in the public interest

Initial Listing Fees and Additional Fees for Mothers (As of end of March 2004)

Initial Listing Examination Fee ¥1 million

Initial Listing Fee ¥1 million + (value of public offering x 0.09%) (to a maximum of ¥20 millon)

Additional Listing Fee Value of financing x 0.09%

Annual Fee Annual listing fee ia as follows: 1. TDnet fee: ¥120,000 2. Fee charged in accordance with market capitalization: Market capitalization is: (1) ¥5 billion or less ¥480,000 (2) more than ¥5 billion-¥25 billion ¥1,200,000 (3) more than ¥25 billion-¥50 billion ¥1,920,000 (4) more than ¥50 billion-¥250 billion ¥2,640,000 (5) more than ¥250 billion-¥500 billion ¥3,360,000 (6) more than ¥500 billion ¥4,080,000 (1~3 years after listing: 50% of the above fees)

Note: Japanese consumption tax will be added to the above fees.

31 Foreign Stocks Listing Criteria for Foreign Stocks or Depositary Receipts (DRs)

(As of end of March 2004) Item Ordinary Company Privatized Company

A company must meet the following criteria (1)~(6), (9)~(11), and also meet the following criteria (7) or (8).

LISTING

(1)Number of Shares or DRs Average Trading Minimum Number * Average Closing Price to be Listed Closing Unit of Shares – Daily average of closing prices at Price (shares) (thousand shares) home country stock exchange, etc. less than ¥500 1,000 20,000 for one year preceding to the date of ¥500 - ¥999 500 10,000 listing application. In the case of a ¥1,000 - ¥4,999 100 2,000 company not being publicly held, the ¥5,000 - ¥9,999 50 1,000 initial public offering price will be re- ¥10,000 - ¥99,999 10 200 ferred. ¥100,000 or more 1 20

(2)Liquidity of Shares or DRs Number of Liquidity in home country and Number of Sharehold- shareholders in Japan ers or DRs holders in Ja- having or being likely to have sufficient liquidity pan Secondary Listing 1,000 in home country Simultaneous Listing not having or being unlikely to have sufficient with Other Exchanges 2,000 liquidity in home country

Primary Listing 2,000

(3)Share Distribution Significant portion of shares must not be held by a limited number of shareholders

(4)Market capltalization of At least ¥2 billion by the time of listing shares listed

(5)Years Elapsed Since Incor- At least 3 years since incorporation Applicant business has been continuously op- poration erating the principal part of its business for at least three calendar years

(6)Shareholders' Equity At least ¥1 billion as of the last fiscal year

(7)Pre-tax Profits Pre-tax profit for the last 3 years, or 2 years (or shorter period in case of privatized company) if the Exchange deems appropriate, must satisfy either of the following items: a. 2 years b. 3 years (a) the 1st year: ¥100 million or more (a) the 1st year: ¥100 million or more (b) the last year: ¥400 million or more (b) the last year: ¥400 million or more (c) total for 3 years: ¥600 million or more

(8)Total market capltalization At least ¥100 billion by the time of listing, if the previous year’s sales surpass ¥10 billion.

(9)Financial Records a.There should be no false statements in the applicant's financial statements for the 2 most recent fiscal years (or for the 3 most recent fiscal years, in cases where neither the criteria (7)a nor the criteria (8) are met). b.The opinion given by a certified public accountant, in the audit reports, should be 'fair' for the 2 most recent fiscal years(or for the 3 most recent fiscal years, in cases where neither the criteria (7)a nor the criteria (8) are met). c.The auditor's opinions should be non-qualified fair in principle for the most recent fiscal year.

(10)Restriction against In principle, there will be no restrictions on the transfer of stocks. Stock Transfer

(11)Shareholders Service Appoint Shareholders Service Agent and Dividend-paying Bank approved by the TSE

Deposit Agreement: Foreign companies applying for listing of DRs must make a deposit agreement with trustee Bank and DR holders. 32 Listing Fees for Foreign Stocks (As of end of April 2004)

Initial Listing Fee (1) Listing Examination Fee ¥ 1 million (2) Listing Fee [Fixed Fee] ¥ 2.5 million [Proportional Fee] ¥0.0225 x No. of shares listed (or DRs hereafter the same) x Rate of reduction

LISTING The maximum amount of this proportional fee shall be ¥13.5 million.

(rate of number of shares held by Japanese investors to the (rate of reduction) total number of shares listed) 2% or less 1/50 more than 2% but 5% or less 1/20 more than 5% 1/10

Annual Listing Fee Market capitalization is: (1) ¥5 billion or less ¥120,000 (2) more than ¥5 billion-¥25 billion ¥240,000 (3) more than ¥25 billion-¥50 billion ¥480,000 (4) more than ¥50 billion-¥250 billion ¥600,000 (5) more than ¥250 billion-¥500 billion ¥720,000 (6) more than ¥500 billion ¥840,000

Additional Listing Fee 0.0018% of the total paid-in value of newly-issued shares offered in Japan (In the case of a company listed only on Tokyo Stock Exchange, shares offered in the other countries shall be included in the calculation) The maximum amount of this proportional fee shall be ¥13.5 million

33 Investment Trusts ETF Exchange Traded Funds (ETFs) are funds or investment in individual stocks. ment trusts that hold portfolios of stocks, which Additional ETFs may be created by depositing closely track the movements of a specific underly- portfolios of stocks (“in-kind subscription”) with ing stock index. ETFs can be bought and sold on the trustees, and they may also be redeemed for port- LISTING exchange just like stocks. As the prices of ETFs are folios of stocks (“in-kind redemption”). ETFs are designed to correspond to the underlying stock indi- therefore useful arbitrage tools for broker/dealers ces, investors can easily motion ETF performance and institutions. by following the corresponding index information This characteristic is expected to contribute to regularly disseminated by the media. greater liquidity and to help ensure efficient price Since ETFs are based on broad stock indices, they formation in both the underlying cash equities and may offer investors relatively lower risk than invest- index futures markets. Listing Criteria for ETF (As of end of March 2004) Eligibility1 Stock style (subscription & redemption in stocks) Cash style (subscription in cash; redemption in stocks) Product-related (1) Matters to be included in Fund management policy is to realize a profit by tracking a specific stock index. contract documents There is no specific period of validity for the fund. Investors are unable to cancel their subscription during the contracted period. The accounting period will be of at least 6 months. (2) Designated participants2 At least 2 qualified institutional investors. (3) Composition of assets Fund assets must represent at least 95% of the stocks by market capitalization of the underlying index (if a simple average index, then 100% coverage). Other (1) Fund administrator A member of the Investment Trusts Association, Japan (2) Units listed At least 10,000 trading units (3) Distribution At least 1,000 unit holders; •at the time of listing for cash style ETFs •within one year for stock style ETFs3 (4) Financial reports, etc4 No false statements during the last 2 years, and a 'fair' assessment by an auditor (5) Format of certificate TSE-designated format (6) Investor protection & public Must be deemed eligible in terms of investor protection and public interest interest (including check on fund manager's operations, compliance & financial stability)

1. Recent amendments to the relevant investment trust laws means that stock-style investment funds are now legal. Cash-style funds may only be offered on the Nikkei 300 index. 2. According to Securities Exchange Law: Securities companies, banks and others organizations qualified and experiences in securities investment. 3. Documentary evidence required from fund management showing projected distribution within one year, based on sales by at least 2 designated participants and the forecast growth of assets under management. 4. Only applies to those funds with past financial reports. Initial Listing Fees and Additional Fees for ETF (As of end of April 2004) 1) Initial Listing Examination Fee ¥2 million 2) Initial Listing Fee Total amount of net assets X 0.01% 3) Additional Listing Fee Total amount of additional trust X 0.01% 4) Annual Fee Total amount of net assets is: a.¥100 billion or less: 0.01% of total amount of net assets b.more than ¥100 billion - ¥1 trillion: ¥10 million+(total amount of net assets - ¥100 billion) X 0.0075% c.more than ¥1 trillion: ¥77.5 million+(total amount of net assets - ¥1 trillion) X 0.005% Note: Japanese consumption tax will be added to the above fees.

34 REIT In November 2000, amendments to the Invest- vestor receives, as a share of money distributed, ment Trust Act in Japan allowed for the creation of income such as a rental income from the real es- Real Estate Invest Trusts (REITs). tate or the securitized real-estate product, which the REITs are pools of investors’ money gathered fund holds as an asset. by investment corporations or fund managers and REITs are generally viewed as offering the po-

LISTING invested in real estate property, with rents and pro- tential benefits of increased real estate management ceeds from sales returned to investors as dividends. efficiency for real estate holders and risk-return di- By investing in a REIT issued by a fund, an in- versification for investors.

Listing Criteria for REIT (As of end of April 2004) Listed products Corporate style Contract Style-Direct Contract Style-Intermediated Characteristics of the products (1) Proportion of real estate Over 75% of investment assets are required to be real estate and the like. (2) Assets other than real estate Investment assets other than real estate and the like are required to be cash and its equivalent. (3) Profit attribute of real estate Over 50% of investment assets are required be real estate and the like that can bring in a sufficient revenue from rental services, and that are unlikely to be sold within one year. Matter of form (1) Fund management companies Only Investment Trusts Association, Japan members (2) Listed shares 4,000 shares or more (3) Assets Gross assets required to be 5 billion yen or more, net assets required to be 1 billion yen or more, and net asset per share is required to be 50,000 yen or more.

(4) Distribution Large-lot investors (*) are required to hold 75% or less of the listed shares, and there must be 1,000 or more other investors. (5) Refund Only closed end (6) Others Financial statements, style of the securities, transfer of names and so on are treated in the same way as share stocks.

(*) Top 10 investors in terms of the number of shares held Initial Listing Fees and Additional Fees for REIT (As of end of April 2004) (1) Initial Listing Examination Fee ¥ 2 million (2) Initial Listing Fee Total amount of net assets X 0.09% (3) Additional Listing Fee Total amount of money from additional listing of shares or trusts X 0.09% (4) Annual Fee Out of the net assets: (1) ¥0.5 million for ¥500 million or less. (2) ¥70,000 for each ¥250 million or fraction thereof in excess of ¥0.5 billion to (*) ¥5 billion. (3) ¥70,000 for each ¥2.5 billion or fraction thereof in excess of ¥5 billion to (*) ¥50 billion. (4) ¥70,000 for each ¥25 billion or fraction thereof in excess of ¥50 billion. Note: Japanese consumption tax will be added to the above fees.

35 Listed Companies Overview Number of Listed Domestic Companies and Shares

No. of Listed Cos.End of No. of Shares (bils.)

LISTING 1,6891994 342 1,7141995 345 1,765 1996 348 1,805 1997 351 1,838 1998 347 1,892 1999 356 2,055 2000 351 2,103 2001 337 2,119 2002 321 2,174 2003 329

2,200 2,000 1,800 1,600 1,400 1,200 1,000 0 100 150 200 250 300 350

Number of Listed Domestic Companies by Trading Units (As of end of 2003) 1 10 50 100 500 1,000 3,000 Total share shares shares shares shares shares shares shares

First Section 39 6 6 470 39 972 1 1,533 Second Section 27 1 1 152 23 365 - 569 Mothers 65 - - 3 - 4 - 72

Total 131 7 7 625 62 1,341 1 2,174

Number of Listed Domestic Companies by Business Year-end (As of end of 2003)

Business First Second Business First Second Mothers Total Mothers Total Year-end Section Section Year-end Section Section

Jan. 16 8 1 25 July 3 1 4 8 Feb. 78 31 1 110 Aug. 7 7 - 14 Mar. 1,267 432 31 1,730 Sept. 15 13 12 40 Apr. 4 1 1 6 Oct. 6 7 2 15 May 19 6 2 27 Nov. 14 15 - 29 June 7 10 6 23 Dec. 97 38 12 147

Total 1,533 569 72 2,174

36 Total Market Value (¥ trils.)

Total Market Value End of

LISTING 1995 365.7

1996 347.5

1997 280.9

1998 275.1

1999 456.8

2000 360.5

2001 269.7

2002 247.8

2003 316.4

0 100 200 300 400 500

Number of Listing Companies on Overlapping Stock Exchanges (As of end of 2003)

Listed on Listed on Listing Single Overlapping 5 Stock 4 Stock 3 Stock 2 Stock Companies Stock Stock Exchanges Exchanges Exchanges Exchanges Exchange Exchanges

Tokyo 2,174 1,239 935 56 28 138 713 First Section 1,533 725 808 56 28 132 592 Second Section 569 443 126 - - 6 120 Mothers 72 71 1 - - - 1 Osaka 1,140 347 793 56 28 137 572 First Section 721 37 684 56 28 131 469 Second Section 316 216 100 - - 6 94 Hercules 103 94 9 - - - 9 Nagoya 421 95 326 56 26 106 138 First Section 290 10 280 56 26 103 95 Second Section 131 85 46 - - 3 43 Fukuoka 171 34 137 56 21 25 35 Sapporo 108 13 95 56 9 8 22 Total 2,690 1,728 962 56 28 138 740 Note: Second Section of Osaka SE includes "New Market Section."

37 Newly Listed, Delisted, First Section Assigned & Second Section Reassigned Companies in 2003

Number of Newly Listed Companies/ Investment Trusts and Delisted Companies

Newly Listed Newly Listed Inherited Delisted Companies Investment Trusts Companies* Companies

1997 50 - - 11 LISTING 1998 54 - - 21 1999 75 - - 21 2000 157 - 46 40 2001 92 8 - 44 2002 94 13 - 78 2003 120 4 - 65 *Inherited from the Hiroshima and Niigata Stock Exchange on March 1, 2000 Newly Listed Companies in 2003 Date of Date of Company Mkt.Company Listing Mkt. Listing

1st Simree Jan. 23 M Arealink Aug. 8 2nd TAC Jan. 29 M Artist House Aug. 8 1st AOC Holdings Jan. 30 2nd Cybernet Systems Aug. 26 M ADMIRAL SYSTEMS Jan. 30 2nd PRIVEE ZURICH TURNAROUND GROUP Aug. 29 1st Imasen Electric Industrial Feb. 3 1st Mitsukoshi Sept. 1 2nd KIRINDO Feb. 3 2nd FULLCAST Sept. 3 2nd NIHON TRIM Feb. 4 M Wintest Sept. 3 M y-Arriba Feb. 4 1st NEC System Technologies Sept. 12 2nd Japan System Techniques Feb. 5 2nd INVOICE Sept. 16 M Area Quest Feb. 6 2nd AKINDO SUSHIRO Sept. 18 2nd TANAKA Feb. 7 2nd CENTURY LEASING SYSTEM Sept. 18 2nd F.C.C. Feb. 17 M MediBIC Sept. 18 2nd UP Feb. 18 M Mag Garden Sept. 22 2nd XNET Feb. 19 2nd SANEI-INTERNATIONAL Sept. 24 2nd ARCLAND SAKAMOTO Feb. 21 1st Hokugin Financial Group Sept. 26 2nd YASKAWA INFORMATION SYSTEMS Feb. 21 2nd PACIFIC MANAGEMENT Sept. 26 2nd JAPAN FOODS Feb. 25 1st Alfresa Holdings Sept. 29 M C4 Technology Feb. 25 1st COMSYS Holdings Sept. 29 2nd UORIKI Mar. 4 1st MIYAJI ENGINEERING GROUP Sept. 29 2nd SK JAPAN Mar. 6 1st Nabtesco Sept. 29 M Tomen Cyber-business Solutions Mar. 6 1st HAZAMA Oct. 1 2nd TOKYO ELECTRON DEVICE Mar. 7 1st MELCO HOLDINGS Oct. 1 1st Ashikaga Financial Group Mar. 11 1st TOKYU CONSTRUCTION Oct. 1 1st Mizuho Financial Group Mar. 12 2nd Hoosiers Corporation Oct. 1 2nd NISSEI Mar. 13 M eAccess Oct. 3 M Japan Wind Development Mar. 14 M MEDINET Oct. 8 2nd NIPPON TIMESHARE Mar. 18 M Kakaku.com Oct. 9 2nd CORE Mar. 20 M cyber communications Oct. 14 M CNA Mar. 20 1st Pasona Oct. 28 1st Keihanshin Real Estate Mar. 24 1st Yahoo Japan Oct. 28 2nd INTERNIX Mar. 24 M ThreePro Nov. 5 1st Nisso Iwai-Nichimen Holdings Apr. 1 1st KAPPA•CREATE Nov. 7 1st TAIYO LIFE INSURANCE Apr. 1 M VeriSign Japan Nov. 19 2nd Takara Leben Apr. 4 2nd AEON Fantasy Nov. 20 2nd MEC Apr. 7 M SHINOZAKIYA Nov. 28 2nd SUGIMOTO Apr. 10 M APPLE INTERNATIONAL Dec. 1 M OHT Apr. 21 1st Sankyo-Tateyama Holdings Dec. 1 M MOC Apr. 22 M NIHON FALCOM Dec. 2 2nd Niitaka Apr. 24 2nd VALOR Dec. 2 2nd ICHINEN Apr. 25 2nd CAN DO Dec. 3 2nd SUN-WA TECHNOS Apr. 28 M VeriServe Dec. 3 M ED-CONTRIVE May 1 M SD Holdings Dec. 5 2nd EM SYSTEMS May 2 M OncoTherapy Science Dec. 8 M Information Planning May 30 2nd STB Leasing Dec. 9 1st Toabo Corporation June 12 1st Japan Petroleum Exploration Dec. 10 2nd NETMARKS June 12 2nd TAKACHIHO ELECTRIC Dec. 11 2nd SUNPOT June 18 2nd BANDAI VISUAL Dec. 12 2nd KAWAMOTO June 19 2nd FUJI Dec. 12 1st SEIKO EPSON June 24 2nd Kennedy-Wilson Japan Dec. 12 M Associant Technology June 30 M Aplix Dec. 17 2nd MODEC July 2 2nd ECHO TRADING Dec. 18 2nd NIPPON RESTAURANT SYSTEM July 15 2nd NBC Dec. 18 M DWANGO July 17 2nd ONOKEN Dec. 18 1st NEC Electronics July 24 M Soiken Dec. 18 1st Nissen July 25 M Site Support Institute Dec. 18 2nd STUDIO ALICE July 30 2nd Matsushita Electric Works Information Systems Dec. 19 1st MISAWA HOMES HOLDINGS Aug. 1 2nd TOCALO Dec. 19 2nd MEIKO NETWORK JAPAN Aug. 6 2nd CANON SOFTWARE Dec. 24 2nd ASICS Trading Aug. 8 1st FUJI SEAL Dec. 25 2nd FUJIKYU Aug. 8 2nd RYOWA LIFE CREATE Dec. 25 1st=First Section, 2nd=Second Section, M=Mothers Section

38 Newly Listed ETFs in 2003

None Newly Listed REITs in 2003

REIT Date of Listing REIT Date of Listing TOKYU REIT Sept. 10 Nomura Real Estate Office Fund Dec. 4 Global One Real Estate Investment Sept. 25 United Urban Investment Dec. 22

Delisted Companies in 2003

LISTING Mkt. Company Date of Delisting Reason Mkt. Company Date of Delisting Reason

1st Arabian Oil Jan. 24 A 1st KINSEKI July 28 A 1st YOKOHAMA MATSUZAKAYA Feb. 25 A 1st MISAWA HOMES July 28 A 2nd Toyo Takasago Dry Battery Feb. 25 A 2nd MISAWA TOYO July 28 E 1st The Ashikaga Bank Mar. 5 A 2nd Shinko Sangyo July 28 A 1st Mizuho Holdings Mar. 6 A 1st MINOLTA July 30 A 1st Kobe Kiito Mar. 21 C 1st NIPPON CONLUX Aug. 1 E 1st MEIDEN ENGINEERING Mar. 26 B 2nd AIM SERVICES Aug. 1 E 1st Nichimen Mar. 26 A 2nd KANDA TSUSHIN KOGYO Aug. 25 A 1st NIPPI Mar. 26 A 1st Kanto Special Steel Works Aug. 26 A 1st Nissho Iwai Mar. 26 A 1st Mitsukoshi Aug. 26 B 1st Sakura Friend Securities Mar. 26 B 1st The Hokuriku Bank Sept. 19 A 1st SQUARE Mar. 26 B 1st AZWELL Sept. 22 A 1st Sumitomo Construction Mar. 26 B 1st FUKUJIN Sept. 22 A 1st Yoshihara Oil Mill Mar. 26 A 1st MIYAJI IRON WORKS Sept. 22 A 2nd FUDOW Mar. 26 A 1st NABCO Sept. 22 A 2nd OAK Mar. 26 A 1st Nippon COMSYS Sept. 22 A 2nd SHIN NIPPON MACHINERY Mar. 26 A 1st SANWA ELEC Sept. 22 A 2nd TOHOKU RICOH Mar. 26 A 1st TEIJIN SEIKI Sept. 22 A 1st AIR LIQUIDE Japan Apr. 21 E 2nd MIYAJI CONSTRUCTION & ENGINEERING Sept. 22 A 2nd CSK Network Systems Apr. 24 A 1st AMADA MACHINICS Sept. 25 B 2nd ServiceWare Corporation Apr. 24 A 1st HAZAMA Sept. 25 F 1st CESAR Apr. 25 C 1st MELCO Sept. 25 A 2nd THE NANKAI WORSTED SPINNING Apr. 29 C 1st TOKYU CONSTRUCTION Sept. 25 F 2nd Daiwa Construction June 3 C 2nd KYOTO DIE CASTING Sept. 25 B 1st Toa Wool Spinning & Weaving June 6 A 2nd Tokyo Shearing Sept. 25 A 1st THE OHTSU TIRE & RUBBER June 25 B 2nd UBE-NITTO KASEI Sept. 25 A 2nd SAPPORO LION June 25 A 1st C TWO-NETWORK Oct. 17 A 2nd OYE KOGYO June 30 C 2nd SEIREI INDUSTRY Nov. 14 A 1st FUKUSUKE July 22 C 1st SANKYO ALUMINIUM INDUSTRY Nov. 25 A 1st Nippon Steel Chemical July 23 A 2nd FONTAINE Nov. 25 A 1st Banyu Pharmaceutical July 27 E M Site Design Dec. 1 A 2nd ORIENT WATCH July 27 G 1st Tokyu Tourist Dec. 25 A 1st HAKONE TOZAN RAILWAY July 28 A The reason for the delisting A=Full Subsidization B=Merger C=Corporate Reorganization D=Dissolution E=No. of Shares Held by "Special Few" F=Demerger G=Liabilities Exceeding Assets H= Application First Section Assigned Companies in 2003

Company Date of Assignment Company Date of Assignment Company Date of Assignment

DyDo DRINCO Jan. 6 Saint Marc Mar. 3 THE PACK June 2 CHIYODA Feb. 3 SAWAI PHARMACEUTICAL Mar. 3 TOKEN CORPORATION June 2 Diamond City Feb. 3 SPK Mar. 3 GULLIVER INTERNATIONAL Aug. 1 FUJI ELECTRONICS Feb. 3 SURUGA Mar. 3 POPLAR Aug. 1 ARAKAWA CHEMICAL INDUSTRIES Mar. 3 TACHI-S Mar. 3 Tokyo Individualized Educational Institute Aug. 1 BANPRESTO Mar. 3 Taisei Lamick Mar. 3 WARABEYA NICHIYO Aug. 1 COMBI Mar. 3 THE JAPAN GENERAL ESTATE Mar. 3 Hitachi Mobile Sept. 1 Dainichi Mar. 3 UNIDUX Mar. 3 Kintetsu World Express Sept. 1 EIZO NANAO Mar. 3 UNITED ARROWS Mar. 3 SNT Sept. 1 FUKUJIN Mar. 3 JASTEC May 1 Taito Sept. 1 HAMAKYOREX Mar. 3 PIA May 1 USC Sept. 1 Japan Kenzai Mar. 3 SATORI ELECTRIC May 1 WEATHERNEWS Nov. 4 KOURAKUEN Mar. 3 TAKARA PRINTING May 1 HIOKI E.E. Dec. 1 MANDOM Mar. 3 Dodwell B•M•S June 2 SHICHIE Dec. 1 NEC Mobiling Mar. 3 NIWS June 2 SHIZUOKAGAS Dec. 1 NISSIN FUDOSAN Mar. 3 OPTEX June 2 PETROLUB INTERNATIONAL Mar. 3 Shoei June 2 Second Section Reassigned Companies in 2003 None First Section Reassigned Companies from Mothers in 2003

Company Date of Assignment Company Date of Assignment

KUBOTEK Feb. 26 Culture Convenience Club Mar. 14

Second Section Reassigned Companies from Mothers in 2003 Company Date of Assignment

INTEC Communications Jan. 15

39 Foreign Companies Listed on TSE (As of end of March 2004)

Date of Listing

(Australia) (2) National Australia Bank Limited Sept. 6, 1985 Westpac Banking Corporation May 9, 1986 LISTING

(Canada) (1) The Toront-Dominion Bank May 13, 1986

(France) (3) Alcatel Dec. 20, 1988 BNP PARIBAS S.A. Mar. 13, 2000 Société Générale Feb. 15, 2000

(Germany) (6) Bayer Aktiengesellschaft Oct. 26, 1988 Commerzbank Aktiengesellschaft Oct. 1, 1986 DaimlerChrysler AG Nov. 18, 1998 Deutsche Bank Aktiengesellschaft Nov. 9, 1989 Deutsche Telekom AG Nov. 19, 1996 Volkswagen Aktiengesellschaft Dec. 2, 1988

(Hong Kong) (1) Henderson Land Development Company Limited Feb. 5, 1997

(Malaysia) (1) YTL Corporation Berhad Feb. 29, 1996

(Netherlands) (1) AEGON N.V. Oct. 4, 1988

(Spain) (1) Telefónica, S.A. Oct. 4, 1985

(Switzerland) (1) UBS AG June 30, 1998

(United Kingdom) (3) Barclays PL Aug. 1, 1986 BP p.l.c. Aug. 28, 1987 THE PENINSULAR AND ORIENTAL STEAM NAVIGATION COMPANY Dec. 22, 1987

(U.S.A.) (12) AFLAC Incorporated Dec. 17, 1987 American International Group, Inc. Sept. 18, 1987 Apple Computer, Inc. Sept. 18, 1990 Bank of America Corporation July 1, 1987 The Boeing Company Oct. 5, 1990 The Dow Chemical Company Dec. 18, 1973 International Business Machines Corporation Nov. 27, 1974 J.P. MORGAN CHASE & CO. Jun. 20, 2001 Merrill Lynch & Co., Inc. Nov. 18, 1986 MOTOROLA, INC. Nov. 10, 1988 PepsiCo, Inc. Nov. 13, 1986 The Procter & Gamble Company May 28, 1986 Total: 32 companies

40 Listed Company Awards

TSE gives awards once every year to listed com- The award is now given to companies that have panies that have provided superior disclosure and contributed to a widening of the securities market successfully expanded the number of their individual investor base by encouraging new individual inves- shareholders. tors to participate in the market through a variety of In 2003, TSE established a new award entitled investor base expansion activities. “Award for Broadening of Individual Shareholder Base” by combining the previous award categories

LISTING for continuous dividend increase and minimum trading unit reduction.

Award for Superior Corporate Disclosure Year Name Total

7 1996 AIWA, HOGY MEDICAL, HOYA, Sony Chemical, Sony Music Entertainment, TORII PHARMACEUTICAL

ACOM, KIRIN BREWERY, Kokusai Electric, MAX, SATO, STAR 7 1997 MICRONICS, YAMATO TRANSPORT

DDI, KOMATSU, Shiseido, SONY, TOREY INDUSTORIES, XEBIO 6 1998

ITO EN, KAO, KEIHIN, Tokyo Electron, TOPPAN PRINTING 5 1999

FUJISAWA PHARMACEUTICAL, Hitachi Maxell, HONDA MOTOR, 6 2000 KAGOME, RICOH LEASING, SOFTBANK

AIWA, Hitachi, HOYA, SANYO ELECTRIC CREDIT, TDK 5 2001

BANDAI, Matsushita Electric Industrial, MAX, NICHIREI, RICOH, 7 2002 UNI-CHARM, Yamanouchi Pharmaceutical

AIFUL, DAIICHI PHARMACEUTICAL, LAWSON, Shiseido, 5 2003 SOGO MEDICAL

ACOM, DOSHISHA, ITO EN, JSR, KAO, NATORI, TOA 7 2004

Award for Broadening of Individual Investor Shareholder Base

Year Name Total

2003 KAGOME, RICOH LEASING, SONY, TOYOTA MOTOR 4

2004 ITO EN, NTT DOCOMO, TDK, WATAMI FOOD SERVICE 4

41 Financing Equity Financing (All Listed Companies)

Preferred Stocks Exercise of Rights Offerings Public Offerings and Tracking Private Placements Warrants and Total Stocks Stock Options

LISTING Amount Amount Amount Amount Amount Amount No.of No.of No.of No.of No.of Raised Raised Raised Raised Raised Raised Cases Cases Cases Cases Cases (¥ bils.) (¥ bils.) (¥ bils.) (¥ bils.) (¥ bils.) (¥ bils.)

1993 9 47 4 7 - - 14 150 184 617 822 1994 2 9 17 136 1 100 8 238 180 450 935 1995 12 95 8 33 1 50 19 160 118 299 638 1996 9 337 36 305 5 539 20 218 187 673 2,073 1997 9 72 26 128 2 223 19 369 88 368 1,162 1998 1 0 12 284 5 471 35 696 35 88 1,540 1999 - - 35 370 27 7,012 86 2,444 74 262 10,090 2000 2 8 36 572 5 137 56 972 94 107 1,798 2001 3 32 18 1,201 6 228 71 567 92 38 2,066 2002 - - 21 156 40 1,029 79 501 82 276 1,963 2003 3 1 40 572 75 2,537 103 233 126 39 3,385 Jan. ------9 58 24 1 59 Feb. - - 2 1 13 151 7 12 32 1 167 Mar. - - 6 230 21 1,576 16 58 31 1 1,865 Apr. ------5 4 32 0 4 May - - 1 0 7 266 7 9 34 5 282 June 1 0 2 6 - - 7 2 39 2 12 July - - 2 4 6 152 6 12 53 3 173 Aug. - - 6 15 10 149 8 12 61 3 181 Sept. - - 2 3 6 14 8 13 58 4 35 Oct. 1 0 5 21 2 30 6 20 71 5 78 Nov. 1 0 6 47 1 2 8 13 70 4 68 Dec. - - 8 240 9 192 16 16 71 4 454

Notes: 1. The day after payment and the day of issuance are used as base date and amount raised by the companies listed on Japan's stock exchanges (excluding the companies listed on Hercules at Osaka and registered on the OTC market) as of such base date are aggregated. 2. “Public Offering” made by newly Listing companies including companies whose shares are listed on Hercules at Osaka or registered on the OTC market are excluded. 3. Monthly figures in the number of cases for “Exercise of Warrants and Stock Options” are cumulative numbers. Annual figures are the number of companies. Cases where treasury stocks are allotted with the exercise without issuing new shares are excluded. 4. Figures in “Preferred Stocks and Tracking Stocks” include those for deferred stocks from January 2002.

42 Issuance of Public and Corporate Bonds (Demestic Flotation) (¥ bils.,%)

Ordinary Public Offering Newly Issued Corporate Straight Asset Backed Government Bond Government Local Convertible Bonds Bonds Bonds Securities Government Bonds Yields (10 Years)

Outstanding Outstanding Outstanding Outstanding Outstanding End of Issuance Issuance Issuance Issuance Issuance Average Amount Amount Amount Amount Amount Period

LISTING 1994 54,724 206,604 1,584 9,157 3,425 23,234 2,552 19,406 - - 4.570 4.394

1995 68,430 225,184 1,974 10,296 3,581 27,316 1,010 19,515 - - 3.190 3.420

1996 70,638 244,658 1,922 11,398 5,998 30,846 2,732 19,463 - - 2.760 3.107

1997 71,083 257,987 1,851 12,427 6,043 37,279 228 16,935 - 142 1.910 2.351

1998 95,842 295,249 1,754 13,507 9,332 45,495 214 12,881 378 482 1.970 -

1999 99,806 331,668 2,061 14,832 8,433 49,905 434 12,179 440 809 1.645 1.760

2000 105,391 367,554 2,269 16,459 8,946 54,019 283 10,883 342 960 1.640 1.758

2001 144,493 436,194 2,225 18,120 9,883 57,564 283 9,098 394 926 1.365 1.342

2002 147,298 496,663 2,836 19,843 9,766 59,874 205 7,109 517 1,155 0.900 1.274

2003 154,686 531,859 4,265 22,326 10,528 61,499 56 5,748 347 1,196 1.360 0.993

Jan. 12,178 488,030 202 19,547 610 59,330 0 8,271 50 1,123 0.810 0.830

Feb. 11,790 493,716 225 19,658 879 59,434 15 8,237 0 1,092 0.780 0.831

Mar. 13,320 496,663 320 19,843 1,247 59,874 0 7,109 101 1,155 0.700 0.737

Apr. 12,635 502,267 200 19,923 636 59,717 10 7,117 0 1,141 0.610 0.659

May 12,838 508,776 316 20,153 1,116 59,860 0 7,107 0 1,131 0.530 0.570

June 13,618 508,588 508 20,578 1,437 60,556 0 7,070 31 1,134 0.820 0.554

July 13,116 514,907 290 20,800 660 60,408 0 6,952 0 1,109 0.925 0.995

Aug. 12,482 520,632 291 20,993 869 60,846 0 6,846 100 1,188 1.470 1.151

Sept. 12,935 522,100 575 21,455 1,025 61,155 6 5,826 25 1,191 1.380 1.455

Oct. 12,725 527,609 349 21,625 745 61,512 7 5,813 0 1,180 1.465 1.406

Nov. 13,108 533,482 293 21,822 579 61,497 0 5,771 0 1,172 1.310 1.380

Dec. 13,936 531,859 691 22,326 722 61,499 18 5,748 39 1,196 1.360 1.352

Note: Ordinary Government Securities include discount government bonds. Source: Bank of Japan, Japan Securities Dealers Association

43 DERIVATIVE MARKETS

Derivative Markets in TSE TSE's derivative markets have grown dramati- Existing products and systems are regularly up- cally over their nearly 20-year history. TSE will con- dated and revised to further improve the tools avail- tinuously strive to refine its markets to meet inves- able to market operators. The outlines below high- tors’ diversifying needs . light the key developments in our dynamic derivative markets.

Introduction of New Products, etc. Oct. 19, 1985 10-year Japanese Government Bond (JGB) Futures July 8, 1988 20-year JGB Futures Sept. 3, 1988 TOPIX (Tokyo Stock Price Index) Futures Oct. 20, 1989 TOPIX Options

DERIVATIVE

May 11, 1990 Options on JGB Futures MARKETS Feb. 16, 1996 5-year JGB Futures May 16, 1997 TOPIX Futures Inter-month Spread Trading July 18, 1997 Equity Options (20 underlying stocks) Jan. 23, 1998 First TOPIX Sector Index (TOPIX Electric Appliances Index) Futures Mar. 13, 1998 TOPIX Transportation Equipment Index Futures Apr. 10, 1998 TOPIX Banks Index Futures Oct. 5, 1998 TOPIX Futures Off-Auction Block Trading Aug. 14, 2000 Inter-month Spread Trading on JGB Futures Sept. 18, 2000 Evening Session on JGB Futures and Options on JGB Futures Oct. 30, 2000 Introduction of SPAN® Nov. 20, 2000 Options on 5-year JGB Futures Apr. 9, 2001 Off-Auction Basis and Block Trading for JGB Futures June 11, 2001 S&P/TOPIX 150 Futures and S&P/TOPIX 150 Options

Modifications, etc. Sept. 8, 1989 Settlement prices based on opening prices of TOPIX component stocks on day after last trading day of each contract month Apr. 26, 1990 Disclosure of Program Trading Index arbitrage information Dec. 10, 1993 Disclosure of TOPIX Futures trading volume and open interests of Trading Participants Feb. 14, 1994 TOPIX Futures and Options "circuit breakers" Jan. 4, 1995 Guidelines against market manipulation and customer front-running Oct. 29, 1997 Modifications to margin and mark-to-the-market regulations, including segregation of margin Nov. 14, 1997 Underlying stocks for Equity Options increased to 30 Modifications to TOPIX Options contract specifications, including change of exercise type from American to European Nov. 20, 1997 Serial contract months for Options on JGB Futures Jan. 23, 1998 Modifications to TOPIX Futures contract specifications, including reduction of minimum fluctuation Nov. 30, 1998 Modifications to margin and mark-to-the-market regulations, including earlier settlement and margin deposit deadline Mar. 12, 1999 Underlying stocks for Equity Options increased to 100 Apr. 1, 1999 Reduction in fixed rate fees for Equity Options May 20, 1999 More detailed exercise price scales for Options on JGB Futures July 27, 1999 "No-Action" letter from US SEC for Equity and TOPIX Options Dec. 1, 1999 Earlier start to TOPIX Futures Off-Auction Block Trading May 8, 2000 Modifications to 5-year JGB Futures (6% 3%) May 12, 2000 Underlying stocks for Equity Options increased to 170 June 5, 2000 Modifications to Off-Auction Block Trading of TOPIX Futures Jan. 29, 2001 Emergency margin on SPAN® Feb. 5, 2001 Publication of the pre-opening and 3 best bid/ask quotes Dec. 1, 2001 Modification to Off-Auction Block Trading between 2 different Trading Participants for Stock Price Index Futures Relaxation of position limits for Equity Options Dec. 1, 2002 Introduction of a "Contingency Plan" for the last trading day and the S.Q. caluculation day of futures and options contacts Feb. 1, 2003 Modification to delisting rule for equity options contracts Sep. 16, 2003 Modification to determination method for settlement price for future contracts Feb. 2, 2004 Switch derivatives clearing functions to JSCC (Japan Secirities Clearing Corporation) 44 Trading Activities & Contract Specifications TOPIX Futures Market

Trading Volume, Trading Value and Open Interest of TOPIX Futures

Trading Number of (Inter-month Open Daily Average Value Contracts Spread) (¥ mils.) Interest 1998 2,726,985 (660,434) 11,040 32,073,283 98,355 1999 3,157,441 (636,962) 12,888 44,046,761 113,580 2000 4,148,776 (552,928) 16,729 64,243,476 150,050

2001 5,071,946 ( 590,222) 20,618 59,042,056 191,386

MARKETS 2002 7,131,178 (810,754) 28,989 69,902,108 237,825

DERIVATIVE 2003 9,359,047 (549,416) 38,200 86,192,859 295,606

Jan. 391,290 (-) 20,594 3,314,948 255,141 Feb. 452,497 (528) 23,816 3,803,009 274,521 Mar. 1,212,834 (127,912) 60,642 9,557,570 241,344 Apr. 577,067 (-) 27,479 4,561,335 282,503 May 561,756 (6) 26,750 4,602,804 303,566 June 1,305,530 (95,672) 62,168 11,415,156 276,326 July 673,270 (-) 30,603 6,400,552 279,798 Aug. 518,665 (348) 24,698 5,014,227 284,858 Sept. 1,284,467 (141,294) 64,223 13,315,716 273,330 Oct. 637,769 (-) 28,990 6,765,291 279,243 Nov. 556,112 (-) 30,895 5,603,769 305,726 Dec. 1,187,790 (183,656) 56,561 11,838,475 295,606

Trading Volume by Types of Investors (contracts, %)

2000 2001 2002 2003

Securities Companies 4,248,137( 50.3) 5,377,312( 52.7) 8,007,734( 55.1) 10,873,515( 57.3) Banks 1,463,562( 17.3) 1,370,181( 13.4) 1,543,089( 10.6) 1,826,838( 9.6) Insurance Companies 231,628( 2.7) 173,340( 1.7) 327,767( 2.3) 291,556( 1.5) Other Financial Institutions 549( 0.0) 5,968( 0.1) 6,504( 0.0) 36,744( 0.2) Investment Trusts 239,504( 2.8) 239,491( 2.3) 277,438( 1.9) 303,485( 1.6) Business Corporations 2,723( 0.0) 2,120( 0.0) 1,724( 0.0) 5,524( 0.0) Other Corporations 162( 0.0) 2( 0.0) 588( 0.0) 593( 0.0) Individuals 826( 0.0) 124( 0.0) 885( 0.0) 178( 0.0) Foreigners 2,251,562( 26.7) 3,038,380( 29.8) 4,377,216( 30.1) 5,623,763( 29.7)

Total 8,438,653(100.0) 10,206,918(100.0) 14,542,945 (100.0) 18,962,196 (100.0)

Note: 1. Figures are derived from Trading Participants with capital of ¥3 billion or more. 2. Trading in TOPIX Futures started on Sept. 3, 1988.

45 Contract Specifications for TOPIX Futures (As of end of March 2004)

Contract: TOPIX (Tokyo Stock Price Index) Futures

Contract Months: March, June, September, December cycle (5 contract months traded at any one time)

Trading Unit: ¥10,000 times TOPIX

DERIVATIVE

MARKETS Minimum Fluctuation: 0.5 point of TOPIX

Value of Minimum Move: ¥5,000

Daily Price Limit: Previous day’s settlement price From settlement price less than 2,000 up/down 100 points 2,000 ~ less than 3,000 150 3,000 ~ less than 4,000 200 4,000 or more 250

Last Trading Day: Last business day prior to the 2nd Friday of the respective contract month. Trading in a new contract month begins on the business day following the last trading day.

Final Settlement: Cash settlement based on special settlement price on the business day following the last trading day

Margin: Margin is calculated by JSCC (SPAN R )

Trading Hours: 9:00 ~ 11:00 , 12:30 ~ 15:10

Trading System: Pure auction through the Computer-assisted Order Routing and Execution System for Futures and Options

Inter-month Spread The following 4 combinations are available: Trading: (*1) (1) 2nd nearest - nearest (2) 3rd nearest - nearest (3) 4th nearest - nearest (4) 5th nearest - nearest

Off-Auction Block Trading: Hours: 8:20 ~ 16:00 (*2) Minimum Trading Size: 100 trading units Minimum Fluctuation: 0.1 point of TOPIX Execution Prices: 95% ~ 105% of the last trading price 8:20 ~ 9:00 VWAP of the day before (net commission) 11:00 ~ 12:30 VWAP of the morning session (net commission) 15:10 ~ 16:00 VWAP of the day & VWAP of the afternoon session (net commission)

(*1) Inter-month Spread Trading: Bids / offers are given to the spread between two contract months, when the sale of one and purchase of another are effected simultaneously. (*2) Off-Auction Block Trading: Simultaneous sale and purchase of TOPIX Futures for the same contract month by Trading Participants outside the auction market.

46 Contract Specifications for S&P/TOPIX 150 Futures

(As of end of March 2004)

Contract: (*1) S&P/TOPIX 150 Futures

Contract Months: March, June, September, December cycle (3 contract months traded at any one time)

Trading Unit: ¥1,000 times S&P/TOPIX 150

Minimum Fluctuation: 0.5 point of S&P/TOPIX 150

Value of Minimum Move: ¥500

MARKETS Daily Price Limit: Previous day’s settlement price From settlement price

DERIVATIVE

less than 2,000 up/down 100 points

2,000 ~ less than 3,000 150

3,000 ~ less than 4,000 200

4,000 or more 250

Last Trading Day: Last business day prior to the 2nd Friday of the respective contract month. Trading in a new contract month begins on the business day following the last trading day.

Final Settlement: Cash settlement based on special settlement price on the business day following the last trading day.

Margin: Margin is calculated by JSCC (SPAN R )

Trading Hours: 9:00~11:00 , 12:30~15:10

Trading System: Pure auction through the Computer-assisted Order Routing and Execution System for Futures and Options

Off-Auction Block Trading: (*2) Hours: 8:20 ~ 16:00 Minimum Trading Size: 100 trading units Minimum Fluctuation: 0.1 point of S&P/TOPIX 150 Execution Prices: 95% ~105% of the last trading price 8:20~9:00 VWAP of the day before (net commission) 11:00~12:30 VWAP of the morning session (net commission) 15:10~16:00 VWAP of the day & VWAP of the afternoon session (net commission)

(*1) Trading in S&P/TOPIX 150 Futures started on Jun. 11, 2001. (*2) Off-Auction Block Trading: Simultaneous sale and purchase for the same contract month by Trading Participants outside the (*2) auction market.

47 TOPIX Sector Index Futures Market

Contract Specifications for TOPIX Sector Index Futures

(As of end of March 2004) TOPIX Electric Appli- TOPIX Transportation TOPIX Banks Index (*1) ances Index Futures Equipment Index Futures Futures TOPIX Electric Appli- TOPIX Transportation Contract: TOPIX Banks Index

ances Index Equipment Index DERIVATIVE

MARKETS Contract Months: March, June, September, December cycle (3 contract months traded at any one time)

Trading Unit: ¥10,000 times the index

Minimum Fluctuation: 0.5 point of the index 0.1 point of the index

Value of Minimum Move: ¥5,000 ¥1,000

Daily Price Limit: Previous day’s settlement price From settlement price less than 2,000 up/down 100 points 2,000 ~ less than 3,000 150 3,000 ~ less than 4,000 200 4,000 or more 250

Last Trading Day: Last business day prior to the 2nd Friday of the respective contract month. Trading in a new contract month begins on the business day following the last trading day.

Final Settlement: Cash settlement based on special settlement price on the business day following the last trading day.

Margin: Margin is calculated by JSCC (SPAN R )

Trading Hours: 9:00 ~ 11:00 , 12:30 ~ 15:10

Trading System: Pure auction through the Computer-assisted Order Routing and Execution System for Futures and Options

Off-Auction Block Trading: Hours: 8:20 ~ 16:00 (*2) Minimum Trading Size: 100 trading units Minimum Fluctuation: 0.1 point of the Index Execution Prices: 95% ~ 105% of the last trading price 8:20 ~ 9:00 VWAP of the day before (net commission) 11:00 ~ 12:30 VWAP of the morning session (net commission) 15:10 ~ 16:00 VWAP of the day & VWAP of the afternoon session (net commission)

(*1) Trading in TOPIX Transportation Equipment Index Futures are dormant from June 2003. (*1) Trading in TOPIX Electric Appliances Index Futures started on Jan. 23, 1998. (*1) Trading in TOPIX Banks Index Futures started on April 10, 1998. (*2) Off-Auction Block Trading: Simultaneous sale and purchase for the same contract month by Trading Participants outside the auction market

48 TOPIX Options Market

Trading Volume, Trading Value and Open Interest of TOPIX Options

Number of Contracts Daily Average Trading Value (¥ mils.) Open Interest 1998 655 3 175 1 1999 2,030 8 603 1,559 2000 2,630 11 1,008 - 2001 7,625 31 3,756 644 2002 93,249 379 23,551 8,733 2003 98,137 401 13,912 490

Jan. 10,468 551 1,466 10,537

MARKETS DERIVATIVE Feb. 20,904 1,100 1,930 12,827 Mar. 3,244 162 78 10,665 Apr. 11,137 530 1,144 12,237 May 14,894 709 1,229 13,646 June 16,380 780 2,906 10,206 July 6,586 299 1,889 12,519 Aug. 1,222 58 206 6,597 Sept. 7,282 364 923 6,212 Oct. 4,770 217 1,692 5,215 Nov. 220 12 75 5,435 Dec. 1,030 49 367 490

Trading Volume by Types of Investors (contracts, %) 2000 2001 2002 2003 Securities Companies 2,613( 49.7) 3,924( 25.7) 70,494( 37.8) 76,240( 38.9) Banks 636( 12.1) -(00 0.-) -(00 0.-) 2,350( 1.2) Insurance Companies - (00 0.-) -(00 0.-) 68,204( 36.6) 71,510( 36.4) Other Financial Institutions - (00 0.-) -(00 0.-) -(000 .-) -( 00.-) Investment Trusts - (00 0.-) -(00 0.-) -(000 .-) -(0 0.-) Business Corporations - (00 0.-) 3,552( 23.3) -(00 0.-) -(0 0.-) Other Corporations - (00 0.-) -(00 0.-) -(00 0.-) -(0 0.-) Individuals - (0 00.-) -(0 0.-) -(00 0.-) -(0 0 .-) Foreigners 2,011( 38.2) 7,774( 51.0) 47,800( 25.6) 46,174( 23.5) Total 5,260(100.0) 15,250(100.0) 186,498(100.0) 196,274(100.0) Note: 1. Figures are derived from Trading Participants with capital of ¥3 billion or more. 2. Trading in TOPIX Options started on Oct. 20, 1989.

49 Contract Specifications for TOPIX Options

(As of end of March 2004)

Contract: Call and put options based on TOPIX (Tokyo Stock Price Index)

Contract Months: 4 closest serial months (Longest option period is 4 months)

Trading Unit: ¥10,000 times TOPIX

DERIVATIVE

MARKETS

Minimum Fluctuation: 5 points or less: 0.1 point (or ¥1,000 in valve) More than 5 points: 0.5 point (or ¥5,000 in valve)

Daily Price Limit: Previous day’s closing price From settlement price less than 2,000 up/down 100 points 2,000 ~ less than 3,000 150 3,000 ~ less than 4,000 200 4,000 or more 250

Exercise Price: 9 exercise prices are set at 25-point intervals. Additional exercises prices will be available according to the TOPIX movement.

Exercise Type: European (*1)

Expiration Date: 1st business day following the last trading day (2nd Friday)

Last Trading Day: Last business day prior to the 2nd Friday of the respective contract months

Exercise and Settlement: Cash settlement based on special settlement price on the business day following last trading day

Margin: Margin is calculated by JSCC (SPAN®)

Trading Hours: 9:00 ~ 11:00, 12:30 ~ 15:10

Trading System: Pure auction through the Computer-assisted Order Routing and Execution System for Futures and Options

(*1) All in-the-money options are automatically exercised on the expiration date, unless otherwise instructed.

50 Equity Options Market

Trading Volume, Trading Value and Open Interest of Equity Options

Number of Daily Average Trading Open Contracts Value (¥ mils.) Interests

1999 212,447 867 8,832 24,215 2000 380,846 1,536 25,976 49,852 2001 392,151 1,594 11,488 45,986 2002 304,267 1,237 4,468 30,310 2003 296,574 1,211 2,088 15,905

MARKETS DERIVATIVE Jan. 32,494 1,710 258 45,148 Feb. 13,204 695 81 21,259 Mar. 11,068 553 91 13,039 Apr. 26,190 1,247 100 31,226 May 25,542 1,216 177 44,953 June 48,610 2,315 366 57,676 July 44,757 2,034 320 21,212 Aug. 25,150 1,198 152 36,613 Sept. 18,287 914 112 31,424 Oct. 23,919 1,087 189 45,759 Nov. 14,404 800 84 49,593 Dec. 12,949 617 152 15,905

Trading Volume by Types of Investors (contracts, %)

2001 2002 2003

Securities Companies 284,026( 36.2) 252,373( 41.5) 283,619( 47.8) Banks 88,572( 11.3) 71,024( 11.7) 75,102( 12.7) Insurance Companies 111,297( 14.2) 70,757( 11.6) 25,336( 4.3) Other Financial Institutions 5,884( 0.7) 18,268( 3.0) 5,320( 0.9) Investment Trusts 3,233( 0.4) 9,956( 1.6) 4,545( 0.8) Business Corporations 15,665( 2.0) 37,407( 6.1) 113,626( 19.2) Other Corporations 2,308( 0.3) 11,219( 1.8) 5,883( 1.0) Individuals 5,347( 0.7) 33,480( 5.5) 52,817( 8.9) Foreigners 267,970( 34.2) 104,050( 17.1) 26,900( 4.5) Total 784,302(100.0) 608,534(100.0) 593,148(100.0) Note: 1.Figures are derived from Trading Participants with capital of ¥3 billion or more. 2.Trading in Equity Options started on July 18, 1997.

51 Contract Specifications for Equity Options (As of end of March 2004) Contract: Call and put options based on the First Section listed stocks selected by the Tokyo Stock Exchange (*1)

Contract Months: 4 contract months (2 closest quarterly months and 2 closest serial months)

Trading Unit: Correspondent to the minimum trading unit of the underlying stock DERIVATIVE

MARKETS

Minimum Fluctuation: Lower price of the daily price Minimum Fluctuation: limit of the underlying stock Less than¥2,000 ¥0.5 ¥2,000 ~ less than ¥3,000 ¥2.5 ¥3,000 ~ less than ¥30,000 ¥5 ¥30,000 ~ less than ¥50,000 ¥25 ¥50,000 ~ less than ¥100,000 ¥50 ¥100,000 ~ less than ¥1,000,000 ¥500 ¥1,000,000 ~ less than ¥20,000,000 ¥5,000 ¥20,000,000 ~ less than ¥30,000,000 ¥25,000 ¥30,000,000 or more ¥50,000

Daily Price Limit: Identical with that of the underlying stock on the same day

Exercise Prices: 5 exercise prices are set at ¥25-¥5 mil. intervals depending on the exercise price levels to bracket the current underlying stock price. Additional exercise prices will be available according to the price movement of the underlying stock.

Exercise Type: European (*2)

Expiration Date: Last trading day

Last Trading Day: The business day prior to the 2nd Friday of the respective contract months

Exercise and Settlement: Physical delivery of the underlying stocks on the 4th business day following expiration date.

Margin: Margin is calculated by JSCC (SPAN®)

Trading Hours: 9:00 ~ 11:00 , 12:30 ~ 15:10

Trading System: Pure auction through the Computer-assisted Order Routing and Execution System for Futures and Options

(*1) Equity options underlying a certain stock will be delisted in case (i) the underlying stock is delisted, (ii) the underlying stock is reassigned to the second section, and (iii) there is no transaction of such options contracts during a fiscal year. (*2) All in-the-money options are automatically exercised on the expiration date, unless otherwise instructed.

52 Japanese Government Bond Futures Market

Trading Volume and Open Interest of Japanese Government Bond Futures

(¥ bils.)

Number of Daily Open Cash Market (A) x 2 x ¥100 mil. Contracts (A) Average Interest Volume (B) (B) 5-yr. 10-yr. 5-yr. 10-yr. (¥ tril.) (%) 1998 19,520 1,078,496 4,445 352 15,879 1,074.8 204.3 1999 11,197 972,785 4,016 88 18,356 1,126.4 174.7 2000 11,222 990,912 4,040 54 6,616 1,274.6 157.2 2001 219 737,764 2,999 1 4,035 1,617.3 91.3

MARKETS DERIVATIVE 2002 3 635,661 2,584 - 3,697 1,937.6 65.6 2003 - 646,507 2,638 - 5,084 2,883.4 44.8

Jan. - 37,167 1,956 - 5,838 180.4 41.1 Feb. - 43,925 2,311 - 5,746 192.1 45.7 Mar. - 48,443 2,422 - 4,362 226.9 42.7 Apr. - 39,073 1,860 - 5,465 245.9 31.7 May - 37,421 1,782 - 6,980 220.8 33.8 June - 77,462 3,688 - 7,794 283.3 54.6 July - 68,666 3,121 - 8,650 272.6 50.3 Aug. - 64,598 3,076 - 9,640 248.1 52.0 Sept. - 72,831 3,641 - 5,484 287.3 50.6 Oct. - 57,994 2,636 - 7,139 261.0 44.4 Nov. - 45,573 2,531 - 6,220 225.4 40.4 Dec. - 53,347 2,540 - 5,084 239.1 44.6 Note: The cash market volume is the total amount of sales and purchases in Japanese Government Bonds effected in the Tokyo OTC.

Trading Volume by Types of Investors (contracts, %)

2000 2001 2002 2003

Securities Companies 7,435,487( 38.4) 6,560,504( 44.6) 5,564,203( 43.8) 5,717,685( 44.2) Banks 8,656,905( 44.7) 4,931,754( 33.5) 4,102,331( 32.3) 3,702,627( 28.6) Insurance Companies 131,512( 0.7) 103,079( 0.7) 107,672( 0.9) 76,900( 0.6) Other Financial Institutions 151,937( 0.8) 92,191( 0.6) 83,720( 0.7) 122,585( 1.0) Investment Trusts 74,768( 0.4) 32,678( 0.2) 24,875( 0.2) 19,772( 0.2) Business Corporations 72,697( 0.4) 120,397( 0.8) 34,952( 0.3) 38,066( 0.3) Other Corporations 2,069( 0.0) 1,182( 0.0) 232( 0.0) 69( 0.0) Individuals 1,035( 0.0) 938( 0.0) 1,287( 0.0) 1,683( 0.0) Foreigners 2,821,338( 14.6) 2,873,231( 19.5) 2,780,681( 21.9) 3,247,685( 25.1)

Total 19,347,748(100.0) 14,715,954(100.0) 12,699,953(100.0) 12,927,072(100.0)

Note: Figures are derived from Trading Participants with capital of ¥3 billion or more.

53 Contract Specifications for Japanese Government Bond Futures (As of end of March 2004) 5-year Japanese Govern- 10-year Japanese Govern- 20-year Japanese Govern- ment Bond Futures ment Bond Futures ment Bond Futures (*1)

Contract: Standardized 3%, 5-year Standardized 6%, 10-year Standardized 6%, 20-year Japanese Government Japanese Government Japanese Government Bond Bond Bond

Contract Months: March, June, September, December cycle (3 contract months traded at any one

time.) DERIVATIVE

MARKETS

Trading Unit: JGBs with a face value of ¥100 million

Minimum 1/100 point per 100 points (¥10,000 per contract) Fluctuation:

Daily Price Limit: 2 points upward or downward 3 points upward or down- (3 points upward or downward if extended) ward (4.5 points upward or downward if extended)

Last Trading Day: 7th business day prior to each delivery date. Trading in a new contract month begins on the business day following the last trading day.

Delivery Date: 20th of each contract month

Deliverable Grade: Publicly-offered interest- Publicly-offered interest- Publicly-offered, interest- bearing 5-year JGBs with bearing 10-year JGBs with bearing 20-year JGBs with 4 or more but less than 7 or more but less than 11 15 or more but less than 21 5.25 years remaining to years remaining to maturity years remaining to maturity maturity as of the issued as of the issued date and the as of the issued date and date and the delivery date. delivery date. (*2) the delivery date. (*2) (*2)

Margin: Margin is calculated by JSCC (SPAN®)

Trading Hours: 9:00 ~ 11:00 , 12:30 ~ 15:00 , 15:30 ~ 18:00 9:00 ~ 11:00 , 12:30 ~ 15:00

Trading System: Pure auction through the Computer-assisted Order Routing and Execution System for Futures and Options

Inter-month The following 3 combinations are available: Spread Trading: (*3) (1) nearest - 2nd nearest (2) nearest - 3rd nearest (3) 2nd nearest - 3rd nearest

Off-Auction Type of Trading: Basis Trading and Block Trading Trading: (*4) Hours: 9:00 ~ 11:20, 12:30 ~ 15:20, 15:30 ~ 18:20 Minimum Trading Size: 1 trading unit (Basis Trading), 100 trading unit (Block Trading) Execution Prices: prices that are within the highest and the lowest sales prices in the auction market during the 15 minutes before the trade is agreed

(*1) 20-year JGB Futures is dormant from the December 2002 contract. (*2) The deliverable grade has to be issued at least 3 months prior to the delivery month. (*3) Inter-month Spread Trading: Bids/offers are given to the spread between 2 contract months, when the sales of one and purchase of another are effected simultaneously. (*4) Basis and Block Trading for JGB Futures started on April 9, 2001.

54 Options on Japanese Government Bond Futures Market

Trading Volume,Trading Value and Open Interest of Options on JGB Futures

Number of Contracts Daily Average Trading Value (¥ mils.) Open Interest 1998 1,848,851 7,485 618,606 50,069 1999 1,137,319 4,642 565,155 24,740 2000 1,271,887 5,129 312,418 16,363 2001 1,062,235 4,318 25,924 16,300 2002 1,036,395 4,213 20,159 16,417 2003 972,518 3,969 29,254 17,051

MARKETS

DERIVATIVE Jan. 70,022 3,685 1,190 24,284 Feb. 68,136 3,586 1,103 6,545 Mar. 66,834 3,342 906 14,234 Apr. 71,226 3,392 1,000 20,664 May 92,518 4,406 1,623 21,052 June 127,964 6,094 3,611 24,093 July 113,780 5,172 5,819 25,266 Aug. 85,772 4,084 4,940 4,651 Sept. 57,567 2,878 2,962 4,039 Oct. 81,295 3,695 2,580 13,554 Nov. 72,413 4,023 1,844 6,791 Dec. 64,991 3,095 1,672 17,051

Trading Volume by Types of Investors (contracts, %) 2000 2001 2002 2003 Securities Companies 989,596(048.1) 554,929( 26.2) 496,182( 24.0) 464,025( 23.9) Banks 450,608(021.9) 475,386( 22.5) 528,483( 25.6) 433,757( 22.3) Insurance Companies 41,135(002.0) 25,962( 1.2) 33,954( 1.6) 16,938( 0.9) Other Financial Institutions 12,192(000.6) 6,255( 0.0) 13,670( 0.7) 19,720( 1.0) Investment Trusts 2,604(000.1) 679( 0.0) 1,126( 0.1) 814( 0.0) Business Corporations 772(000.0) 418( 0.0) 659( 0.0) 1,407( 0.1) Other Corporations 368(000.0) 57( 0.0) 50( 0.0) 115( 0.0) Individuals 98(000.0) 179( 0.0) 67( 0.0) 422( 0.0) Foreigners 561,982(027.3) 1,053,298( 49.8) 992,762( 48.0) 1,005,664( 51.8) Total 2,059,355(100.0) 2,117,163(100.0) 2,066,953(100.0) 1,942,862(100.0)

Note: 1.Figures are derived from Trading Participants with capital of ¥3 billion or more. 2.Trading of Options on 10-year JGB Futures started on May 11, 1990. 3.Trading of Options on 5-year JGB Futures started on November 20, 2000.

55 Contract Specifications for Options on Japanese Government Bond Futures

(As of end of March 2004)

Contract: Call and put options based on 5-year JGB Futrures and 10-year JGB Futures (*1)

Contract Months: 2 closest quarterly months and 1 or 2 serial months

Minimum Fluctuation: 0.01 point per 100 points (¥10,000 per contract) DERIVATIVE

MARKETS

Daily Price Limit: 2 points upward or downward from settlement price on the previous trading day (3 points upward or downward if extended)

Exercise Prices: 7 exercise prices are set at ¥1 intervals for quarterly contract months and 11 at ¥0.5 intervals for serial contract months. Additional exercise prices will be available according to the price movement of the underlying JGB Futures contract. Exercise prices are additionally set at ¥0.5 intervals for quarterly contract months on and after the beginning of the months prior to the last trading months in the same way for serial months.

Exercise Type: American (*2)

Expiration Date: Last trading day

Last Trading Day: Last business day of the month prior to the option contract month (Not including half-day)

Exercise and Settlement: By exercising an option, a JGB Futures contract is established at the exercise price on the day of exercise.

Margin: Margin is calculated by JSCC (SPAN®)

Trading Hours: 9:00 ~11:00, 12:30 ~15:00, 15:30 ~18:00

Trading System: Pure auction through the Computer-assisted Order Routing and Execution System for Futures and Options

(*1) Options on 5-year JGB Futures are dormant from July the 2002 contract. (*2) All in-the-money options are automatically exercised on the expiration date, unless otherwise instructed.

56 Coordination between Cash & Derivative Markets Temporary Trading Halts in the Futures and Options Markets during Periods of Abrupt Price Changes

1. Introduction the previous day's settlement price, and also differ- When a price in the futures market runs exces- entiates in excess of the predetermined index points sively ahead of the underlying stock price index, it from its theoretical price, trading in the futures con- may adversely affect the cash market by increasing tract and its related options contracts (as specified volatility. In order to cope with such a situation, co- in the table below) shall be halted. ordinated supervision over price formations in the (b) A trading halt will not be imposed more than one two markets is needed. time during the same trading for the same contract. In this respect, as a measure to contain exces- (c) A trading halt will not be imposed at or after 14:45. sively fast price movement in the futures market (2) Duration of trading halt

MARKETS

DERIVATIVE and to lessen investors’ concern by providing them 15 minutes after the trading halt was triggered with a basis from which they can make rational in- (3) Contract months for which trading halt is imposed vestment decisions, a temporary trading halt sys- (a) Futures contract tem was introduced in the futures and options mar- A trading halt shall be determined on an individual kets. contract month basis. (b) Options contract 2. Contracts subject to the trading halt If a trading halt is triggered in a futures contract Stock Index Futures, Stock Index Options month, trading in its related options contract months will also be halted. 3. Procedures to be taken (4) Reopening procedures (1) Situations in which temporary trading halts are (a) Orders placed before the trading halt will con- imposed tinue to be effective after reopening of the market. (a)Trading halt triggers (b) When trading resumes after a trading halt, the As shown in the table below, when the price of a reopening transaction shall be made in the same Stock Index Futures contract advances (or declines) manner as the opening transaction in each trading in excess of the predetermined index points from session.

Predetermined Points [Index Futures]

Previous Day’s Settlement Price Predetermined Points from Predetermined Points from [Daily Price Limit] Previous Day’s Settlement Price Theoretical Price (*) (points) (points) (points) (points) Less than 2,000 Upward or downward 70 Upward or downward 20 Up or downward 100 2,000 ~ less than 3,000 100 30 150 3,000 ~ less than 4,000 130 40 200 4,000 or more 160 50 250 (*)Theoretical Price = underlying index points + [previous day's settlement price of underlying index points X {(short-term interest rate – dividend yield) X the number of remaining days/365}]

Options Contract Months Subject to Trading Halt Futures Contract Months Related Options Contract Months Mar. Jan., Feb., Mar. June Apr., May, June Sept. July, Aug., Sept. Dec. Oct., Nov., Dec.

57 Temporary Restriction on Index Arbitrage Trading for Trading Participants’ Proprietary Accounts

1. Introduction (*) Index arbitrage transactions are expected to con- Trading Participant’s proprietary account shall include tribute to the correlation of prices between the cash those of trading participant’s parent, subsidiary and and futures markets and to increase the liquidity of affiliated securities business companies, which are both markets. However, because index arbitrage defined under the Trading Participant’s Regulations.

DERIVATIVE trading is systematically and unilaterally executed MARKETS in one way based on the difference between fu- 3. Timing of restriction tures and cash prices, in periods of abrupt price As shown in the table below, when TOPIX moves changes it can accelerate price movement. In order up (or down) in excess of the predetermined index to lessen such an excessive interaction between points from the previous day's settlement price, pur- cash and futures markets, index arbitrage trading chases (or sales) in the cash market involved in in- for the proprietary accounts of trading participants, dex arbitrage trading for trading participants’ propri- who are responsible for the orderly market opera- etary accounts shall be restricted. tion, shall be restricted under certain circumstances. 4. Lifting of restriction 2. Trading subject to restriction When TOPIX subsequently moves back within Trading in the cash market which is involved in the predetermined index points from the privious index arbitrage for trading participant’s proprietary day's settlement price, the restriction shall be lifted. account. (*)

Restriction & Lifting Points [TOPIX]

Previous Day’s Settlement Price Predetermined Points from Predetermined Points from Previous Day’s Settlement Price Previous Day’s Settlement Price (Restriction) (Lifting) (points) (points) (points) Less than 2,000 Upward or downward 100 Upward or downward 70 2,000 ~ less than 3,000 150 100 3,000 ~ less than 4,000 200 130 4,000 or more 250 160

58 Index Arbitrage & Program Trading

TSE trading participants are required to report TSE defines “Program Trading” as sale and/ or the volume of stock trading involving index purchase of a basket of 25 or more stocks. TSE trad- arbitrages and established positions thereof on a ing participants are required to report the daily vol- daily basis from February 4, 1991 (weekly basis volume of Program Tradings for each of index arbitrages ume had been reported since April 16, 1990). and the others from April 1, 1991.

MARKETS

DERIVATIVE

Program Trading and Positions Established with Index Arbitrages

Trading Volume Program Trading Positions Established with (mils. of shares) (¥ bils.) Index Arbitrages (¥ bils.) CD–E

Total (A) Daily Total (C) Index Purchases Sales (E) AX2 B Average(B) Arbitrages (D) (%) (times)

1998 121,595 492 25,691 11,901 724 53 10.56 1.36 1999 151,200 617 28,384 12,282 1,103 140 9.39 1.56 2001 199,531 811 33,514 12,580 1,053 116 8.40 1.16 2002 207,281 842 46,996 13,587 955 279 11.34 0.80 2003 307,194 1,253 56,394 14,141 2,474 32 9.18 1.95 Jan. 16,655 876 3,381 883 751 352 10.15 0.45 Feb. 18,131 954 3,551 1,023 914 383 9.79 0.56 Mar. 19,350 967 5,321 1,515 809 286 13.75 0.54 Apr. 22,768 1,084 4,383 800 855 272 9.63 0.54 May 23,574 1,122 4,413 988 1,067 265 9.36 0.71 June 32,636 1,554 5,658 1,372 1,187 188 8.67 0.64 July 32,438 1,474 5,531 1,227 1,276 181 8.53 0.74 Aug. 30,675 1,460 4,917 1,495 1,695 272 8.02 0.97 Sept. 31,705 1,585 6,312 1,899 1,827 119 9.96 1.08 Oct. 32,905 1,495 4,626 902 2,021 43 7.03 1.32 Nov. 20,935 1,163 3,753 661 2,135 34 8.96 1.81 Dec. 25,416 1,210 4,542 1,371 2,474 32 8.94 2.02 Notes: The figures in the column of "Program Trading" are aggregate amounts of sales and purchases.

59 BOND MARKETS

Bond Trading Activities

Total Bond Volume (Par Value)

TSE Markets Tokyo OTC Markets No. of (¥ bils.) (¥ trils.) Listed Issues Government Convertible Total Total Bonds Bonds

1989 1,475 29,088 43,392 71,512 3,548 1990 1,454 37,920 19,841 57,787 3,360

MARKETS

1991 1,406 18,021 12,227 30,278 2,747 BOND 1992 1,322 6,066 9,480 15,573 2,994 1993 1,350 4,780 15,700 20,552 3,390 1994 1,388 3,372 12,703 16,145 3,460 1995 1,325 4,532 15,565 20,227 4,012 1996 1,311 5,497 13,245 18,881 3,182 1997 1,134 4,407 11,652 16,148 3,385 1998 956 1,856 6,672 8,557 2,606 1999 840 28 5,045 5,078 3,836 2000 823 22 2,890 2,937 4,061 2001 753 2 2,192 2,198 4,058 2002 630 2 1,812 1,816 3,665 2003 483 2 1,019 1,021 5,110

Jan. 631 0 90 90 311 Feb. 626 0 92 92 318 Mar. 549 0 101 101 408 Apr. 551 0 91 92 426 May 554 0 98 98 420 June 552 0 77 77 479 July 549 0 123 123 482 Aug. 548 0 73 73 435 Sept. 481 0 97 98 499 Oct. 483 0 79 79 496 Nov. 485 0 47 47 423 Dec. 483 0 46 46 407 Notes: 1. Foreign currency-denominated foreign bonds and foreign convertible bonds are excluded. Notes: 2. "Tokyo OTC Markets" volume is a total of sales and purchases in all sorts of bonds including convertibles.

60 TSE Convertible Bond Volume

Net Purchases of Convertible Bonds (Par Value) (¥ bils.)

1999 2000 2001 2002 2003

Members' Accounts 327.1 204.3 221.2 149.5 166.2 Individuals -556.0 -482.2 -239.4 -42.5 -149.6 Investment Trusts -3.5 -11.0 4.5 -7.6 -0.8 Business Corporations 11.4 -21.2 -4.8 18.7 -22.1 Insurance Companies -6.3 2.5 -0.9 -20.9 -1.7 Banks -202.7 -29.9 -225.7 -230.8 -67.7 Foreigners 672.5 417.7 311.4 190.5 83.8

BOND MARKETS Others -243.2 -82.6 -68.2 -64.6 -8.2

Total -0.6 -2.4 -1.9 -7.7 -0.3

TSE Convertible Bond Trading Volume

(¥ bils., %)

During No. of No. of Amount Total Trading Trading Turnover or Listed Listed Listed Market Volume Value Ratio End of Issuers Issues (par value) Value (par value)

1998 476 802 14,694 14,782 6,672 6,810 41.6 1999 442 693 12,091 15,032 5,045 5,565 37.7 2000 439 661 11,287 12,940 2,890 3,445 24.7 2001 390 566 10,098 10,691 2,192 2,412 20.5 2002 316 427 8,182 8,544 1,812 1,885 19.8 2003 212 258 5,670 6,079 1,019 1,067 14.7

Jan. 316 425 8,105 8,453 90 92 1.1 Feb. 312 419 8,062 8,399 92 94 1.1 Mar. 268 342 6,961 7,258 101 102 1.4

Apr. 268 342 6,959 7,233 91 93 1.3 May 268 342 6,959 7,277 98 102 1.4 June 267 339 6,925 7,289 77 81 1.1

July 264 334 6,809 7,224 123 132 1.8 Aug. 261 329 6,708 7,130 73 78 1.1 Sept. 213 262 5,736 6,133 97 104 1.6

Oct. 213 261 5,724 6,166 79 86 1.4 Nov. 213 260 5,682 6,059 47 49 0.8 Dec. 212 258 5,670 6,079 46 48 0.8 Note: Excluding foreign convertible bonds

61 Trading Specifications (As of end of March 2004)

Government Bonds Foreign Currency- Yen-Denominated Denominated Foreign Foreign Bonds Regular Transaction Special Transaction Bonds

Trading Hours 13:00 ~ 13:30 (Batch 9:00 ~ 11:00 13:30 ~14:00 (Batch 13:30 ~14:00 (Batch auction) auction) auction) [9:30 ~ 10:00 on half- 12:30 ~ 15:00 [10:00 ~10:30 on half- [10:00 ~10:30 on half- day trading] day trading] day trading]

Trading Unit ¥50,000 in par value ¥100,000 or ¥1 million Minimum denomina- in par value tions of each bond

Orders Price Interest rate or Price Price Price Minimum ¥0.01 per ¥100 in 0.001% or ¥0.01 ¥0.01 per ¥100 in par 0.01 point per 100 Fluctuation par value per ¥100 in par value points Type of Orders Limit order and value Limit order and Limit order and market

MARKETS

market order Limit order and market order order BOND market order

Trading with Not Permitted Permitted (all or none, Not Permitted Conditions trading unit, non-taxable accrued interests, and basis trading for JGB Futures)

Trading Method Auction

Type of Cash (T+0) Transactions T+3 Regular way (T+3) and Settlement Day

Corporate Bonds, Bank Convertible Bonds Bonds with Warrants Warrants Debentures, Municipal Bonds and Government Associated Organiza- tion Bonds

Trading Hours 10:30 ~11:00 (Batch 9:00 ~11:00 9:00 ~11:00 9:00 ~11:00 auction) 12:30 ~ 15:00 12:30 ~ 15:00 12:30 ~ 15:00

Trading Unit ¥1 million or ¥10 milion ¥100 thousand, ¥500 ¥500 thousand or ¥1 1 warrant in par value thousand or million in par value ¥1million in par value

Orders Price Price Price Price Minimum ¥0.01 per ¥100 in ¥0.1 per ¥100 in par ¥0.05 per ¥100 in par ¥0.05 per ¥100 in par Fluctuation par value value value value Type of Orders Limit order and Limit order and Limit order and Limit order and market order market order market order market order

Trading Method Auction

Type of Cash (T+0) Transactions Regular way (T+3) and Settlement Day

62 Listing Regulations

Bond Listing & Delisting Criteria (As of end of March 2004) Listing Criteria Delisting Criteria

Government Take criteria of Corporate Bonds into account. a. Outstanding in par value is: Bonds (Criterion of “listed company” is not applicable to • less than ¥300 mil. or Government Bonds.) • less than 20% of that of the listing date b. Acceleration of maturity c. Coming of maturity date

Yen-denomi- (Corporate Bonds) a. Outstanding in par value is: nated Foreign Listed company or unlisted company whose financial • less than ¥300 mil. or Bonds conditions are considered equivalent to those of listed • less than 20% of that of the companies; listing date and b. Less than 1 year to maturity BOND a. ¥1 bil. or more outstanding in par value

MARKETS b. 10% or more of the total amount issued or to be issued c. Acceleration of maturity in the form of certificate c. Expected to be 1,000 bondholders or more by the time of listing d. 3 years or less from the issuing (Other Bonds) e. Bond certificate must be prepared in accordance with the designated form by the TSE.

Foreign Cur- Take the criteria of Yen-denominated Foreign Bonds into account. rency-denomi- (Total amount issued is measured by the latest exchange rate as of the application date in prin- nated ciple.) Foreign Bonds

Corporate Listed company and a. Outstanding in par value is: Bonds a. ¥1 bil. or more outstanding in par value • less than ¥300 mil. or b. 10% or more of the total amount issued or to be issued in • less than 20% of that of the the form of certificate listing date c. Expected to be 1,000 bondholders or more by the time of b. Less than 1 year to listing maturity d. 3 years or less from the issuing c. Acceleration of maturity e. Bond certificate must be prepared in accordance with the designated form by the

Other Straight Take the criteria of Corporate Bonds into account Bonds

Convertible Listed company; and a. Total amount listed in par Bonds & Bonds a. ¥2 bil. or more outstanding in par value value: less than ¥300 mil. with Warrants b. Expected to be 1000 bondholders or more by the time b. Expiration of exercise of listing period c. Bond certificate: must be prepared in accordance with c. Monthly average volume: the designated form by the TSE less than ¥1 mil. d. Acceleration of maturity

Warrants Listed company; and a. Total No. of warrants listed: a. Total No. of warrants issued: 4,000 or more less than 300 b. Expected to be 1000 bondholders or more by the time b. Expiration of exercise of listing period c. Bond certificate: must be prepared in accordance with c. Acceleration of maturity the designated form by the TSE

63 Initial Listing Fees

(As of end of April 2004)

Initial Listing Fees

Terms to Maturity ¥300,000 per issue (if the issuer's stock is not listed on TSE, ¥800,000 (less than 10 years) for the first issue. From the second listing and on, ¥300,000 per issue.) Straight Bonds Terms to Maturity ¥400,000 per issue (if the issuer's stock is not listed on TSE, ¥900,000 (10 years or more) for the first issue. From the second listing and on, ¥400,000 per issue.)

Japanese Government Bond ¥150,000 per issue

Convertible Bonds & 4.5/10,000 of listed amount in par value Bonds with Warrants

MARKETS Warrants 4.5/10,000 of listed amount (the total value of the shares to be issued by BOND exercises)

Annual Listing Fees

(As of end of April 2004)

Annual Listing Fees

Straight Bonds If the issuer's stock is: (1) Listed on TSE: ¥100,000 for one issue and ¥50,000 for each additional issues (2) Not listed on TSE: ¥200,000 for one issue and ¥50,000 for each of other issues

Convertible Bonds Out of the listed amount in par value (1) ¥500,000 for the amount of ¥500 million or less; Bonds with Warrants (2) ¥70,000 for each ¥250 million or fraction thereof in excess of ¥500 million to ¥5 billion; (3) ¥70,000 for each ¥2.5 billion or fraction thereof in excess of ¥5 billion to ¥50 billion; (4) ¥70,000 for ¥25 billion or fraction thereof in excess of ¥50 billion.

Warrants The listed amount is: (1) less than ¥5 billion ¥600,000 (2) ¥5 billion-¥25 billion ¥780,000 (3) more than ¥25 billion-¥50 billion ¥1,140,000 (4) more than ¥50 billion-¥250 billion ¥1,500,000 (5) more than ¥250 billion-¥500 billion ¥1,860,000 (6) more than ¥500 billion ¥2,220,000

Note: Japanese consumption tax will be add to the above fees.

64 Tokyo Market Information Service

Why do you need Tokyo Market Information Service?

For Further Information: For more detailed information, please access: http://www.tse.or.jp/english/guide/tmi/index.html

65 INVESTORS

Shareownership by Market Value

Shareownership by Market Value (All Listed Companies)

¥ bils. Percentage Mar. 2001 Mar. 2002 Mar. 2003 Mar. 2001 Mar. 2002 Mar. 2003 Govt. & Local Govt. 560 533 538 0.2 0.2 0.2 Financial Institutions 138,617 122,483 92,556 39.1 39.4 39.1 City Banks & Other Banks 35,719 26,908 18,185 10.1 8.7 7.7 Trust Banks 61,849 61,717 50,694 17.4 19.9 21.4 Investment Trusts 9,877 10,302 9,384 2.8 3.3 4.0 Annuity Trusts 19,652 18,696 13,630 5.5 6.0 5.8 Life Insurance Cos. 28,996 23,370 15,789 8.2 7.5 6.7 Non-life Insurance Cos. 9,537 8,316 6,198 2.7 2.7 2.6 Other Financial Institutions 2,512 2,169 1,687 0.7 0.7 0.7 Business Corporations 77,469 67,578 50,789 21.8 21.8 21.5 Securities Companies 2,581 2,170 2,088 0.7 0.7 0.9

INVESTORS Individuals & Others 68,934 61,033 48,679 19.4 19.7 20.6 Foreigners 66,574 56,733 41,824 18.8 18.3 17.7 Total 354,737 310,533 236,476 100.0 100.0 100.0

Average per share Market Price of Stocks Owned by Investment Sectors

(¥) Mar. 2001 Mar. 2002 Mar. 2003 Govt. & Local Govt. 220.0 ( 2.5) 208.3 ( -5.3) 203.6 ( -2.3) Financial Institutions 605.0 (-28.9) 465.6 (-23.0) 302.8 (-35.0) City Banks & Other Banks 502.1 (-33.1) 400.3 (-20.3) 289.7 (-27.6) Trust Banks 696.6 (-32.9) 499.3 (-28.3) 305.7 (-38.3) Investment Trusts 721.0 (-37.2) 510.3 (-29.2) 310.7 (-39.2) Annuity Trusts 728.9 (-37.0) 504.0 (-30.9) 302.7 (-39.9) Life Insurance Cos. 616.1 (-25.1) 485.3 (-21.2) 317.1 (-34.7) Non-life Insurance Cos. 548.2 (-25.5) 440.1 (-19.7) 290.3 (-34.0) Other Financial Institutions 532.3 (-19.5) 418.3 (-21.4) 284.7 (-31.9) Business Corporations 560.9 (-39.2) 355.1 (-36.7) 228.8 (-35.6) Securities Companies 516.9 (-33.9) 388.7 (-24.8) 272.9 (-29.8) Individuals & Others 421.1 (-26.1) 327.8 (-22.2) 230.5 (-29.7) Foreigners 810.9 (-33.6) 561.2 (-30.8) 282.7 (-49.6) Total 571.6 (-31.7) 414.7 (-27.4) 263.6 (-36.4) Notes: 1. Figures in parentheses are percent changes from the preceding year. 2. "Individuals & Others" include unincorporated associations.

66 Number of Shareholders

Number of Individual Shareholders

mils. of persons 35

INVESTORS 1950 1960 1970 1980 1990 2002

Number of "Unit" Shareholders by Types of Investors (All Listed Companies)

Thous. of Persons Percentage 2001.3 2002.3 2003.3 2001.3 2002.3 2003.3 Govt. & Local Govt. 2 2 2 0.0 0.0 0.0 Financial Institutions 141 140 135 0.4 0.4 0.4 City Banks & Other Banks 30 25 23 0.1 0.1 0.1 Trust Banks 63 68 67 0.2 0.2 0.2 Investment Trusts 12 12 12 0.0 0.0 0.0 Annuity Trusts 19 18 15 0.1 0.1 0.0 Life Insurance Cos. 18 21 21 0.1 0.1 0.1 Non-life Insurance Cos. 8 7 6 0.0 0.0 0.0 Other Financial Institutions 20 18 16 0.1 0.1 0.0 Business Corporations 726 734 886 2.2 2.1 2.5 Securities Companies 60 61 56 0.2 0.2 0.2 Individuals & Others 32,150 33,517 33,771 96.7 96.8 96.4 Foreigners 175 177 170 0.5 0.5 0.5 Total 33,256 34,632 35,023 100.0 100.0 100.0 Note: "Individuals & Others" include unincorporated associations.

67 Investment Plans Employee Stock Ownership Plans The employee stock ownership plan in Japan is Average Number of Units of Shares Held set up and operates as a voluntary association of by a Participant Employee and Market employees who participate in the plan. The partici- Value Thereof pants put up a certain amount of money, usually (TSE listed companies) withheld from their monthly salaries or wages, and their respective companies give subsidies to them. 2001.3 2002.3 2003.3 The total money – participants’ installments and the No. of Units of Shares 3.15 3.56 4.25 subsidy – is pooled in the plan and used for the pur- Market Value (¥10,000) 140.8 129.3 106.8 chase of shares of the company at regular intervals.

Employee Stock Ownership Plans (TSE Listed Companies)

2001.3 2002.3 2003.3

INVESTORS

No. of Cos. with Plans 1,600 1,648 1,667

No. of Units Issued by Cos. with the Plans (10,000 of units) A 46,251 54,696 67,164

No. of Units Owned by the Plans (10,000 of units) B 565.6 642.9 761.2

B/A % 1.22 1.18 1.13

Total No. of Employees of Cos. with the Plans (10,000) C 352.3 356.5 349.3

Total No. of Participants in the Plans (10,000) D 179.6 180.6 179.2

No. of Units per Participant B/D 3.15 3.56 4.25

Note: The companies with the plans above, listed on TSE, carry out an agreement to handle business concerning the plan with Note: Daiwa Securities, Daiwa Securities SMBC, Nikko Cordial Securities, or Nomura Securities.

68 Financial Assets of Individuals

Breakdown of Financial Assets of Individuals

Other Securities 4.8%

Investment Trusts Others 2.3% 4.1% Cash Currency Shares & Equities 16.9% 4.9% Securities 12.0%

Currency & Insurance & Deposits Pension 55.9% 28.0%

INVESTORS Time Deposits 39.0%

(As of end of 2003)

Financial Assets of Individuals

End of Year 2000 2001 2002 2003

¥ trils. % ¥ trils. % ¥ trils. % ¥ trils. %

Currency & Deposits 762 ( 54.9) 770 ( 55.5) 781 ( 56.3) 787 ( 55.9)

Insurance & Pension 388 ( 28.0) 408 ( 29.4) 399 ( 28.7) 394 ( 28.0) reserves

Securities 156 ( 11.2) 168 ( 12.1) 144 ( 10.4) 169 ( 12.0)

Shares & Equities 66 ( 4.8) 61 ( 4.4) 54 ( 3.9) 68 ( 4.9)

Investment Trusts 33 ( 2.4) 32 ( 2.3) 28 ( 2.0) 32 ( 2.3)

Other Securities 57 ( 4.1) 75 ( 5.4) 62 ( 4.5) 68 ( 4.8)

Others 81 ( 5.8) 73 ( 5.3) 60 ( 4.3) 58 ( 4.1)

Total 1,390 (100.0) 1,420 (100.0) 1,388 (100.0) 1,409 (100.0)

Note: Amounts of stocks are based on market prices. Source: Bank of Japan

69 SECURITIES COMPANIES

Overview of Securities Companies Requirements for Securities Companies In order to encourage new entrants into the se- However, under the law, entering other business curities industry, the Securities and Exchange Law, areas in the industry such as OTC securities deriva- which previously allowed only stock corporations tives trading, underwriting, and PTS (Proprietary licensed by the Minister of Finance to conduct se- Trading System) business still requires approval from curities business, was amended effective Decem- the Commission due to the high level of specializa- ber 1998. tion and risks, as well as the level of administrative The amended law enables stock companies to obligations involved in these operations. enter the industry by registering only with the Fi- nancial Services Agency (formerly the Financial Re- construction Commission).

Number of Member Companies in Each Stock Exchange

(As of end of 2003) Tokyo Osaka Nagoya Fukuoka Sapporo

General Trading Participants/Members 108 81 35 21 12

(Foreign Trading Participants)/Members) (20) (20) (-) (-) (-)

Total 108 81 35 21 12

COMPANIES

SECURITIES

Number of Securities Companies in Japan

End of No. of Securities No. of Securities Workforce Companies Company Offices

1990 272 3,198 161,695

1991 267 3,297 159,653

1992 265 3,072 148,306

1993 268 2,919 135,492

1994 277 2,879 130,533

1995 282 2,761 121,621

1996 289 2,740 115,806

1997 291 2,625 110,602

1998 288 2,335 97,306

1999 286 2,294 94,136

2000 297 2,308 96,879

2001 291 2,295 98,792

2002 281 2,148 91,266

2003 268 1,512 86,881

Source: Japan Securities Dealers Association

70 Income Statements of TSE Trading Participants (108 Securities Companies)

(¥ mils.) 2002.3 2003.3 Total Commission Reserved 1,528,206 13,485,386 Brokerage Commission 612,535 487,174 Brokerage Commission of Equities 592,963 462,485 Brokerage Commission of Bonds 14,858 12,746 Brokerage Commission of Beneficiary Securities 3,214 11,568 Underwriting and Secondary Offering Commission 143,071 125,754 Offering and Secondary Offering Trading Commissions 153,601 138,578 Other Acceptance Commission 618,936 596,912 Trading Profit and Loss 409,712 555,923 Trading Profit and Losses of Equities 217,887 179,789 Trading Profit and Losses of Bonds 129,083 325,709 Trading Profit and Losses of Securities 62,727 50,405 Profit and Losses of Financial Transaction 402,174 341,662 Gain on Margin Transaction 42,361 35,985 Gain on Debt-credit Transaction 136,750 90,927 Dividend received 67,580 42,998 Interrest of credit received 80,368 106,480 Interest income 67,189 53,229 Total Operating Revenue 2,340,359 2,246,808

SECURITIES COMPANIES Financial Expenses 263,230 219,580 Margin Transaction Expenses 30,209 22,586 Repo Trabsaction Expenses 115,356 86,970 Debt-credit Transaction Expenses 81,577 68,360 Interest Expenses 31,428 30,840 Net Revenue from Operations 2,077,106 2,027,187 Selling, General and Administrative Expenses 2,069,404 1,893,393 Transaction Related Fee 316,465 304,414 Salaries and bonuses for employees 1,014,866 896,611 Real Estate Fee 278,638 258,885 Administration Fee 258,635 252,434 Depreciation 62,006 59,814 Enterprise Tax 16,527 15,089 Operating Income and Expenses 7,708 133,821 Non-Operating Income and Expenses 13,924 10,650 Ordinary Income and Expenses 21,636 144,461 Extraordinary Gains and Loses -245,439 -145,500 Income Before Income Taxes -223,799 -1,041 Income Taxes 110,743 110,920 Deferred Tax Adjustments -39,402 34,871 Net Income -295,150 -146,879

71 SECURITIES TAXATION

Tax on Capital Gain of the Listed Stocks, etc.

(As of end of April 2004)

Tax-Payer Taxation Remarks

[Tax Rate] (Taxable stocks, etc.) Shares, subscription rights warrants, 10% separate taxation on statement comprising of convertible bonds, bonds with stock 7% income tax and 3% inhabitant tax subscription warrants, preferred beneficiary certificates, ETFs, J-REITs and others 20% separate taxation on statement comprising of 15% income tax and 5% inhabitant tax (Special Treatment relating to the IPO shares) [Specific Tax Account System] As for the shares that had already held If trade is through a specific tax account made at a for 3 years or more before the IPO, securities company, it is not necessary to declare the capital gain tax will be half as usual tax on the listed stocks on the account. if the shares are sold within one year from the IPO. [Treatment to Defer Deduction on Capital Loss] Among the capital loss on the listed stocks, etc. Individual caused on January 1, 2003 and after, the deducted in the fiscal period will be deferred for deductions with the capital gains for three years by filling final declaration.

SECURITIES [Special Treatment for Stock Investments] TAXATION Stock investments from November 30, 2001 to De- cember 31, 2002 with limited amount of 10 million yen will be exempted from capital gain tax if sale of such investments will be done from year of 2005 to 2007.

Corporation Capital gains are taxable. Capital losses are deductible from taxable income.

72 Tax on Dividends, Interest

Tax on Dividends

(As of end of April 2004)

Tax-Payer Taxation Remarks

(Aggregate taxation) 10% tax withheld at source (declaration not required) Aggregated taxation would be chosen. comprising of 7% income tax and 3% inhabitant tax In that case, the dividend reduction would be applicable. 10% tax withheld at source (declaration not required) Individual comprising of 15% income tax and 5% inhabitant tax

Corporation 50% of the total amount of dividend received is not taxable.

Tax on Interest

TAXATION SECURITIES (As of end of April 2004)

Tax-Payer Taxation Remarks

Individual 20% tax withheld at source comprising 15% income Separate taxation tax and 5% inhabitant tax Taxable

Corporation Taxable

73 CROSS BORDER CAPITAL FLOW

Securities Investment Foreign Investment in Japanese Securities Net Purchases of Japanese Securities by Foreign Investors

12,000 10,000

Stocks Bonds 10,000 8,000

8,000 6,000

6,000 4,000

4,000 2,000

2,000 0

0 -2,000

-2,000 -4,000 1993 1995 1997 1999 2001 2003 1993 1995 1997 1999 2001 2003

Foreign Investment in Japanese Securities

(¥ bils.) During Stocks Bonds Purchases Sales Net Balance Purchases Sales Net Balance 1992 12,175 11,030 1,144 19,461 20,524 -1,063 1993 17,000 14,857 2,142 19,055 19,042 13 1994 21,960 17,094 4,865 17,462 17,293 169 1995 20,608 15,977 4,631 16,463 15,574 888 1996 27,754 22,646 5,108 21,544 17,670 3,874 1997 32,557 29,245 3,311 24,576 21,788 2,787 1998 31,036 29,111 1,924 24,456 23,628 829

CROSS BORDER 1999 62,038 50,839 11,198 47,287 49,575 -2,287 CAPITAL FLOW 2000 83,559 83,793 -233 57,101 47,024 10,076 2001 77,901 74,106 3,795 52,290 50,487 1,802 2002 64,437 65,703 -1,266 58,277 61,892 -3,615 2003 79,064 69,287 9,777 61,916 64,126 -2,210 Jan. 3,911 3,513 398 3,588 3,738 -150 Feb. 4,180 4,114 65 4,660 4,060 599 Mar. 4,469 4,353 116 5,784 5,788 -4 Apr. 4,567 4,342 225 3,731 4,420 -689 May 4,911 4,253 658 4,198 4,330 -132 June 6,498 5,237 1,261 6,870 6,679 190 July 8,548 6,704 1,843 5,877 6,468 -590 Aug. 7,080 5,585 1,495 3,864 4,547 -683 Sept. 9,352 7,984 1,368 6,977 8,945 -1,968 Oct. 10,334 9,500 833 5,923 5,798 124 Nov. 7,761 7,131 629 4,838 4,149 689 Dec. 7,447 6,566 880 5,602 5,199 402 Note: Calculated on the basis of "Indirect Investment" which means acquisition of shares less than 10% of the outstanding shares of a Note: company by a foreign investor. Figures collected at the time of trade settlement. Source: Ministry of Finance

74 Foreign Stock Trading on Japanese Stock Exchanges by Region (All Stock Exchanges)

(¥ bils.) During 1999 2000 2001 2002 2003

Purchases 56,104 73,127 69,692 59,040 72,467

Total Sales 46,974 75,487 67,288 58,152 64,239

Net 9,130 -2,359 2,403 887 8,228

Purchases 25,544 27,342 28,333 21,545 22,394

United States Sales 19,474 30,186 24,314 20,273 17,979

Net 6,070 -2,844 4,018 1,272 4,415

Purchases 19,533 28,303 24,678 22,094 33,813

Europe Sales 17,974 28,084 25,788 22,278 30,849

Net 1,559 218 -1,109 -184 2,963

Purchases 9,988 14,109 13,362 12,162 14,129

Asia Sales 8,497 13,698 13,412 12,222 13,361

Net 1,490 411 -49 -60 768

Purchases 1,038 3,372 3,318 3,238 2,130

Others Sales 1,028 3,517 3,773 3,378 2,048

CAPITAL FLOW CAPITAL

CROSS BORDER Net 10 -145 -454 -139 81

Note: Calculated on the basis of reports from "integrated" securities companies.

75 Japanese Investment in Foreign Securities Net Purchases of Foreign Securities by Japanese Investors

5,000 20,000 Stocks Bonds

4,000

15,000 3,000

2,000 10,000

1,000

5,000 0

-1,000 0 1993 1995 1997 1999 2001 2003 1993 1995 1997 1999 2001 2003

Japanese Investment in Foreign Securities

(¥ bils.) Stocks Bonds During Purchases Sales Net Balance Purchases Sales Net Balance 1992 4,424 4,837 -413 136,011 131,288 4,722 1993 6,631 4,814 1,816 152,229 148,862 3,366 1994 6,516 5,018 1,498 103,548 98,098 5,450 1995 4,915 4,944 -288 121,243 113,429 7,814 1996 8,709 7,780 929 149,969 141,572 8,397 1997 13,619 11,977 1,642 177,449 175,421 2,028 1998 16,250 14,407 1,843 161,197 151,733 9,464

CROSS BORDER 1999 19,829 16,161 3,667 90,336 81,772 8,564 CAPITAL FLOW 2000 22,243 20,040 2,203 92,989 87,730 5,258 2001 17,693 16,193 1,500 140,156 129,919 10,237 2002 19,769 15,141 4,628 128,158 119,343 8,815 2003 14,038 13,360 678 139,743 121,892 17,851 Jan. 936 750 185 9,968 9,622 345 Feb. 932 601 330 10,932 9,848 1,084 Mar. 1,249 946 302 14,242 12,421 1,821 Apr. 1,471 1,535 -64 12,327 9,282 3,045 May 1,144 1,302 -158 15,225 10,848 4,376 June 1,717 1,876 -158 15,736 12,294 3,442 July 1,102 1,139 -36 10,749 12,991 -2,242 Aug. 824 985 -161 9,344 10,387 -1,043 Sept. 1,276 1,224 52 10,808 8,759 2,049 Oct. 1,318 1,058 260 11,927 10,765 1,162 Nov. 973 885 88 8,483 6,358 2,124 Dec. 1,091 1,054 37 9,997 8,312 1,685 Note: Calculated on the basis of "Indirect Investment." Figures collected at the time of trade settlement. Source: Ministry of Finance

76 HISTORICAL DATA

Historical Highlights

May 15, 1878 “Tokyo Stock Exchange Co., Ltd.” established June 30, 1943 “Japan Securities Exchange,” a quasi-governmental organization, formed through the merger of all existing stock exchanges in Japan Apr. 16, 1947 “Japan Securities Exchange” dissolved Apr. 1, 1949 “Tokyo Stock Exchange” in its present form is founded (opened on May 16) June 1, 1951 Margin transactions introduced Apr. 2, 1956 Bond trading starts Oct. 2, 1961 Second Section for stocks opens Oct. 1, 1966 Government bonds listed for the first time after World War II Oct. 2, 1967 New auction process put into practice with abolition of “Baikai” trades (off-Exchange trades by members reported as Exchange contracts) Apr. 1, 1968 Licensing system for securities companies introduced in place of registration system July 1, 1969 TOPIX (Tokyo Stock Price Index) inaugurated (Jan. 4, 1968=100) May 11, 1970 Trading in convertible bonds commences Oct. 15, 1970 TSE joins International Federation of Stock Exchanges (FIBV) July 19, 1971 Book Entry Clearing System for stocks introduced Apr. 2, 1973 Yen-based foreign bonds listed for the first time Dec. 18, 1973 Foreign Stock Section opens Sept. 24, 1974 Market Information System (MIS) put into operation Jan. 23, 1982 Computer-assisted Order Routing & Execution System (CORES) introduced May 20, 1982 East Asian and Oceanian Stock Exchanges Federation (EAOSEF) established May 13, 1985 Trading in new market building starts Oct. 19, 1985 Trading in 10-year Japanese government bond futures starts Sept. 3, 1988 Trading in stock index futures based on TOPIX begins Oct. 20, 1989 Trading in stock index options based on TOPIX commences Dec. 1, 1989 Trading in U.S. T-Bond futures starts May 11, 1990 Trading in options on Japanese government bond futures begins Nov. 26, 1990 Floor Order Routing and Execution System (FORES) introduced Oct. 9, 1991 Central Depository & Clearing System begins operation July. 18, 1997 Trading in equity options starts Nov. 14, 1997 Off-hours trading commences Feb. 6, 1998 Bond Trading Floor closes June 29, 1998 ToSTNeT-1, an electronic trading system for off-hours trading, begins operation (ToSTNeT-2 begins operation on Aug. 7, 1998) July 1, 1998 TDnet, an electronic system for listed companies’ corporate disclosure, begins operation Dec. 1, 1998 Restrictions on off-exchange trading for listed securities abolished; Registration system for securities companies introduced in place of licensing system Apr. 30, 1999 Stock Trading Floor closes Oct. 1, 1999 Brokerage commissions fully liberalized and become negotiable Fixed number of members abolished Nov. 11, 1999 Mothers (Market of the high-growth and emerging stocks), a new market section for emerging companies, established (First two issues listed on Dec. 22) Mar. 1, 2000 Hiroshima Stock Exchange and Niigata Stock Exchange merged

DATA May 9, 2000 TSE Arrows (a multifunction information center) opens

HISTORICAL July 17, 2000 New computerized order-routing and execution system is extended to cover all listed stocks Nov. 1, 2000 Mothers allows listing of foreign companies July 13, 2001 Trading in ETF (Exchange Traded Funds) starts Sep. 10, 2001 Trading in REIT (Real Estate Investment Trusts) starts Nov. 1, 2001 Tokyo Stock Exchange, Inc. demutualized and converted to a stock company Mar. 1, 2002 Revisions to the Regulation for Short Selling June 4, 2002 TSE and NYSE agree to share information on market surveillance July 1, 2002 Japan Securities Clearing Corporation, Inc., Japan’s new unified clearing and settlement system, founded Jan. 14, 2003 Japan Securities Clearing Corporation (JSCC) designated as securities clearing organization for cash transactions on TSE Sept. 16, 2003 Calculation and publication of TOPIX 1000, Tokyo Stock Exchange Mothers Index, and Tokyo Stock Exchange REIT Index on a real-time basis begins Feb. 2, 2004 Clearing organization for futures and options transactions changed from TSE to Japan Securities Clear ing Corporation 77 Stock Trading Volume (Domestic Stocks)

(mils. of shares) No. of Daily Trading Total High Low Turnover Average Days Value Date Value Date Ratio (%) 1949 192 255 1 2 8/26 0 11/26 18.4 1950 301 512 1 9 7/17 0 2/ 4 25.6 1951 300 821 2 6 1/31 0 1/ 4 30.4 1952 301 2,002 6 15 11/24 1 3/29 52.4 1953 299 2,091 6 22 2/ 2 1 7/ 4 36.6 1954 301 1,238 4 1 12/24 1 8/ 7 15.8 1955 300 2,505 8 27 2/ 9 2 5/28 26.0 1956 304 6,692 22 89 11/ 2 5 1/28 52.2 1957 302 7,691 25 80 1/ 7 8 11/16 45.5 1958 300 11,684 38 121 10/ 7 7 1/ 4 58.5 1959 299 21,200 70 189 12/ 2 21 4/25 89.8 1960 302 27,230 90 226 9/30 20 1/ 4 92.4 1961 301 31,456 104 252 4/11 27 10/28 75.5 1962 302 35,970 119 351 11 / 8 41 5/19 64.8 1963 302 40,779 135 604 4/ 1 32 7/27 63.2 1964 301 29,344 97 375 1/14 31 9/19 39.8 1965 301 34,838 115 688 1/21 24 6/12 43.9 1966 298 35,938 120 332 3/ 3 42 8/22 44.1 1967 299 28,805 96 440 2/ 2 25 11/18 33.8 1968 302 46,885 155 581 10/ 1 30 1/ 4 51.7 1969 297 50,985 171 358 5/30 33 8/23 52.0 1970 297 42,753 143 437 1/ 6 52 5/23 39.4 1971 299 60,818 203 559 12/22 60 10/23 51.4 1972 297 100,357 337 1,076 11/14 91 4/22 79.0 1973 287 59,247 206 1,065 1/18 48 9/10 43.0 1974 285 51,000 178 571 5/17 47 9/28 34.4 1975 284 51,906 182 401 2/28 62 8/23 32.6 1976 286 69,941 244 645 1/12 90 7/19 40.9 1977 286 71,195 248 920 8/31 101 5/28 39.4 1978 285 98,555 345 864 12/ 8 148 5/27 52.1 1979 286 98,245 343 913 5/11 138 6/ 9 50.2 1980 285 102,245 358 939 2/15 140 6/ 9 50.2 1981 285 107,549 377 1,389 4/ 8 114 12/26 50.0 1982 285 78,473 275 822 10/ 8 108 5/31 34.6 1983 286 104,308 364 996 1/ 7 121 11/ 5 44.3 1984 287 103,737 361 965 3/30 123 5/26 42.5 1985 285 121,862 427 1,366 9/26 162 12/21 48.0

1986 279 197,699 708 2,335 8/21 141 1/ 4 75.1 HISTORICAL

1987 274 263,611 962 2,839 3/27 210 1/ 5 96.1 DATA 1988 273 282,636 1,035 2,867 7/ 6 186 1/ 4 98.1 1989 249 222,599 893 2,212 2/23 275 7/17 73.1 1990 246 123,095 500 1,101 10/19 195 12/28 38.4 1991 246 93,605 380 1,462 2/19 138 12/ 9 28.4 1992 247 66,407 268 840 8/28 116 12/30 19.9 1993 246 86,934 353 1,552 4/ 2 81 1/ 4 25.9 1994 247 84,514 342 1,117 6/10 120 1/ 4 24.9 1995 249 92,033 369 1,419 9/ 8 82 1/ 4 26.8 1996 247 100,170 405 1,362 3/ 8 154 12/30 28.9 1997 245 107,566 439 1,270 11/27 165 1/ 6 30.7 1998 247 123,198 498 1,345 9/11 130 12/30 35.2 1999 245 155,163 633 1,705 6/11 120 1/ 4 44.1 2000 248 174,159 702 1,696 3/10 262 12/29 49.2 2001 246 204,037 829 2,101 12/14 367 1/4 59.2 2002 246 213,173 833 2,144 3/8 217 12/30 64.7 2003 245 316,124 1,290 2,319 7/3 343 1/6 97.0 78 Stock Trading Value (Domestic Stocks)

(¥ bils.) Daily High Low Turnover Total Average Value Date Value Date Ratio (%) 1949 36.7 0.2 0.5 8/26 0.1 11/26 26.7 1950 49.9 0.2 0.8 7/17 0.1 1/28 34.3 1951 92.4 0.3 1.0 10/26 0.1 1/4 43.4 1952 352.2 1.2 4.6 12/16 0.2 3/29 78.5 1953 473.1 1.6 4.8 3/5 0.4 7/4 63.6 1954 183.7 0.6 1.8 12/24 0.2 8/7 23.1 1955 283.9 0.9 3.5 11/1 0.2 5/28 31.5 1956 815.8 2.7 9.6 11/2 0.6 1/28 60.5 1957 981.6 3.3 9.9 1/17 0.9 7/27 59.2 1958 1,579.7 5.3 17.4 10/7 0.9 1/4 79.0 1959 3,708.1 12.4 31.9 10/14 3.4 4/25 121.6 1960 5,803.5 19.2 46.0 3/31 3.6 1/4 126.3 1961 6,342.7 21.1 62.3 4/3 4.6 11/18 109.8 1962 6,849.2 22.7 54.4 11/12 6.4 4/21 99.3 1963 5,748.4 19.0 83.1 4/1 4.2 10/14 76.2 1964 3,429.7 11.4 42.1 1/14 3.7 4/4 46.2 1965 4,004.5 13.3 82.1 1/21 2.1 6/12 50.3 1966 5,266.5 17.7 57.6 2/9 5.2 10/22 58.8 1967 4,311.0 14.4 43.6 2/2 3.8 12/28 46.2 1968 8,433.6 27.9 93.0 10/1 4.6 1/20 76.9 1969 13,891.3 46.8 124.9 11/17 8.6 8/23 89.6 1970 9,152.4 30.8 85.4 1/6 10.3 12/26 52.9 1971 13,980.3 46.8 131.3 4/14 10.7 1/4 71.8 1972 21,435.2 72.2 202.3 11/14 19.0 4/22 60.6 1973 14,904.4 51.9 253.4 1/23 11.8 9/10 34.4 1974 12,390.3 43.5 137.5 5/17 11.5 9/28 33.2 1975 15,566.0 54.8 154.2 5/16 14.3 1/11 39.3 1976 23,662.1 82.7 217.0 12/17 28.9 7/31 49.2 1977 21,500.0 75.2 193.9 8/31 30.5 5/28 41.1 1978 32,534.3 114.2 265.2 3/29 45.0 5/27 55.2 1979 34,911.2 122.1 305.4 10/1 44.3 6/9 51.5 1980 36,489.5 128.0 247.6 10/3 53.7 3/29 49.9 1981 49,364.5 173.2 472.4 5/1 50.3 12/26 58.4 1982 36,571.4 128.3 579.5 10/8 48.4 5/31 38.5 1983 54,844.7 191.8 496.1 6/21 67.8 11/5 48.8 1984 67,974.0 236.8 575.7 3/28 83.7 7/21 47.1 1985 78,711.0 276.2 727.3 9/26 110.5 8/5 44.7 1986 159,836.2 572.9 1,682.0 9/26 115.2 1/4 67.2 1987 250,736.9 915.1 2,382.1 3/27 221.2 12/5 80.6 1988 285,521.2 1,045.9 2,768.8 10/28 192.7 1/4 70.2

DATA 1989 332,616.5 1,335.8 2,796.9 2/23 392.3 7/17 61.1

HISTORICAL 1990 186,666.8 758.8 1,464.9 6/27 218.2 12/28 37.7 1991 110,897.4 450.8 1,531.0 2/19 151.5 12/9 29.3 1992 60,110.3 243.4 686.7 9/4 97.6 12/30 18.0 1993 86,889.0 353.2 1,422.7 4/2 61.7 1/4 28.3 1994 87,355.5 353.7 1,114.2 2/1 123.9 1/4 25.6 1995 83,563.9 335.6 1,337.9 9/8 81.8 1/4 23.1 1996 101,892.6 412.5 1,296.2 3/8 144.8 12/30 28.6 1997 108,500.2 442.9 895.7 6/13 129.0 12/30 34.5 1998 97,391.5 394.3 1,008.8 10/22 98.5 12/30 35.0 1999 185,541.7 757.3 1,779.9 12/10 91.4 1/4 50.7 2000 248,662.9 1,002.7 2,492.3 4/21 279.9 12/29 60.8 2001 202,261.5 822.2 1,919.1 6/8 334.1 12/28 61.5 2002 193,354.5 785.9 2,328.9 3/8 193.5 12/30 71.0 2003 242,371.2 989.2 2,051.6 9/12 273.2 1/6 85.9 79 Percentage of Stock Transactions by Investment Sectors

Trading Business Foreign- Insurance Investment Total Participants Individuals Banks Corpo- Others ers Cos. Trusts (¥ bils.) (Members) rations 1975 19.0 58.0 4.7 1.2 1.0 5.6 7.0 3.4 20,366 1976 18.6 55.5 5.0 1.2 1.3 7.9 7.2 3.4 31,514 1977 22.0 49.1 5.2 1.6 1.9 9.3 7.1 3.8 29,136 1978 20.4 48.6 5.0 1.4 2.4 10.5 7.2 4.5 42,913 1979 22.3 48.0 4.1 1.2 3.6 8.1 7.7 5.0 47,209 1980 26.0 43.6 7.4 1.1 3.5 6.2 7.3 4.9 49,400 1981 29.2 41.3 10.2 0.7 2.7 4.1 7.5 4.2 68,740 1982 29.6 40.7 10.9 1.1 2.8 3.8 6.5 4.5 61,784 1983 23.9 43.7 13.9 0.9 2.8 3.7 7.0 4.0 95,288 1984 21.2 42.8 14.1 0.8 4.5 4.2 8.7 3.8 123,310 1985 24.2 36.9 12.5 0.9 8.1 4.3 8.7 4.4 145,318 1986 26.3 29.2 10.9 1.0 12.7 4.7 10.9 4.4 320,007 1987 25.2 26.0 10.0 1.0 16.8 5.1 11.5 4.3 490,673 1988 26.5 23.7 7.4 1.1 18.9 5.9 12.4 4.1 565,242 1989 23.3 23.3 8.7 1.0 20.2 7.9 11.4 4.2 673,509 1990 24.8 23.3 9.8 2.3 17.3 8.3 9.7 4.5 400,331 1991 24.9 23.2 13.6 3.2 12.9 9.8 8.1 4.2 235,807 1992 29.4 18.0 16.5 6.5 11.0 8.0 5.8 4.8 140,504 1993 29.5 19.1 16.3 3.3 14.1 7.8 6.1 3.8 189,078 1994 31.7 15.4 18.4 3.1 17.8 5.5 5.0 3.1 203,070 1995 33.6 15.7 17.7 3.4 18.5 3.4 4.8 2.8 201,428 1996 33.0 15.3 19.9 1.6 20.0 3.6 3.8 2.8 238,040 1997 34.0 9.7 23.3 1.7 23.1 2.4 3.3 2.5 256,205 1998 33.2 9.0 26.2 1.9 22.7 1.4 3.5 2.1 214,582 1999 27.6 21.0 27.9 2.2 13.6 1.7 3.5 2.5 368,403 2000 31.3 15.0 29.1 1.9 15.7 2.0 2.4 2.6 510,872 2001 33.1 12.0 34.7 1.3 13.2 1.9 1.7 2.1 396,031 2002 35.8 14.8 31.7 1.0 11.1 1.5 1.9 2.1 368,418 2003 31.9 18.7 31.4 0.7 10.8 1.4 2.1 3.0 434,934 Note: Figures for 1975-1980 based on the First Section of TSE, and those since 1981 based on the First and Second Section Note: of Tokyo, Osaka, and Nagoya SEs.

HISTORICAL

DATA

80 Stock Trading Value on All Stock Exchanges

(mils. of shares) Other Tokyo Osaka Nagoya All Exchanges Exchanges 1949 36 (60.1) 16 (27.6) 3 (6.3) 3 (6.1) 61 1950 49 (55.2) 24 (27.6) 6 (6.7) 9 (10.6) 90 1951 92 (57.6) 40 (25.5) 10 (6.4) 16 (10.6) 160 1952 352 (50.9) 172 (25.0) 57 (8.3) 109 (15.8) 692 1953 473 (47.1) 295 (29.4) 85 (8.5) 151 (15.0) 1,004 1954 183 (49.0) 114 (30.5) 28 (7.5) 48 (13.1) 374 1955 283 (64.2) 99 (22.4) 24 (5.5) 34 (7.9) 442 1956 815 (60.9) 359 (26.8) 71 (5.4) 93 (6.9) 1,340 1957 981 (62.2) 423 (26.9) 93 (5.9) 79 (5.1) 1,578 1958 1,579 (66.1) 590 (24.7) 117 (4.9) 101 (4.3) 2,390 1959 3,708 (66.4) 1,432 (25.6) 212 (3.8) 235 (4.2) 5,588 1960 5,803 (62.2) 2,741 (29.4) 427 (4.6) 362 (3.9) 9,334 1961 6,342 (64.7) 2,735 (27.9) 397 (4.1) 332 (3.4) 9,807 1962 6,849 (69.2) 2,433 (24.6) 357 (3.6) 252 (2.6) 9,893 1963 5,748 (69.8) 1,909 (23.2) 319 (3.9) 255 (3.1) 8,233 1964 3,429 (71.0) 1,096 (22.7) 173 (3.6) 129 (2.7) 4,829 1965 4,004 (69.3) 1,425 (24.6) 174 (3.0) 178 (3.1) 5,782 1966 5,266 (69.6) 1,831 (24.2) 248 (3.3) 223 (3.0) 7,570 1967 4,311 (68.6) 1,554 (24.8) 252 (4.0) 163 (2.6) 6,281 1968 8,433 (71.9) 2,715 (23.2) 393 (3.4) 180 (1.5) 11,723 1969 13,891 (74.4) 3,987 (21.4) 582 (3.1) 213 (1.1) 18,674 1970 9,152 (76.1) 2,397 (19.9) 348 (2.9) 132 (1.1) 12,030 1971 13,980 (74.2) 4,282 (22.7) 405 (2.2) 182 (1.0) 18,851 1972 21,435 (74.4) 6,367 (22.1) 699 (2.4) 311 (1.1) 28,813 1973 14,904 (74.0) 4,437 (22.0) 521 (2.6) 275 (1.4) 20,138 1974 12,390 (77.8) 2,916 (18.3) 442 (2.8) 183 (1.2) 15,933 1975 15,566(82.0) 2,791 (14.7) 449 (2.4) 168 (0.9) 18,976 1976 23,662 (84.7) 3,335 (11.9) 713 (2.6) 218 (0.8) 27,929 1977 21,500 (84.2) 3,133 (12.3) 682 (2.7) 211 (0.8) 25,527 1978 32,534 (83.7) 5,104 (13.1) 1,000 (2.6) 240 (0.6) 38,880 1979 34,911 (85.4) 4,517 (11.1) 1,084 (2.7) 364 (0.9) 40,878 1980 36,489 (86.6) 4,369 (10.4) 995 (2.4) 306 (0.7) 42,161 1981 49,364 (84.0) 7,029 (12.0) 1,941 (3.3) 410 (0.7) 58,746 1982 36,571 (85.7) 4,576 (10.7) 1,148 (2.7) 371 (0.9) 42,667 1983 54,844 (84.0) 8,350 (12.8) 1,665 (2.6) 473 (0.7) 65,333 1984 67,974(81.8) 12,447 (15.0) 2,097 (2.5) 603 (0.7) 83,121 1985 78,711 (83.2) 12,536 (13.3) 2,884 (3.1) 507 (0.5) 94,639 1986 159,836 (82.8) 25,180 (13.0) 7,307 (3.8) 734 (0.4) 193,058 1987 250,736 (84.7) 34,669 (11.7) 9,502 (3.2) 1,201 (0.4) 296,110 1988 285,521 (85.8) 34,504 (10.4) 11,348 (3.4) 1,382 (0.4) 332,757 1989 332,616 (86.1) 41,679 (10.8) 10,395 (2.7) 1,703 (0.4) 386,395 1990 186,666 (80.5) 35,812 (15.5) 7,301 (3.2) 2,056 (0.9) 231,837 DATA 1991 110,897 (82.7) 18,722 (14.0) 3,586 (2.7) 953 (0.7) 134,159 HISTORICAL 1992 60,110 (74.7) 15,574 (19.4) 3,876 (4.8) 894 (1.1) 80,455 1993 86,889 (81.9) 14,634 (13.8) 3,459 (3.3) 1,139 (1.1) 106,122 1994 87,355 (76.2) 19,349 (16.9) 5,779 (5.0) 2,137 (1.9) 114,622 1995 83,563 (72.1) 24,719 (21.3) 5,462 (4.7) 2,094 (1.8) 115,839 1996 101,892 (74.8) 27,280 (20.0) 5,391 (4.0) 1,605 (1.2) 136,169 1997 108,500 (71.6) 27,024 (17.8) 12,758 (8.4) 3,162 (2.1) 151,445 1998 97,391 (78.5) 20,532 (16.5) 5,985 (4.8) 192 (0.2) 124,101 1999 185,541 (88.3) 22,105 (10.5) 2,371 (1.1) 217 (0.1) 210,236 2000 248,662 (85.6) 34,669 (11.9) 6,876 (2.4) 116 (0.0) 290,325 2001 202,261 (89.8) 27,078 (9.2) 2,112 (0.9) 85 (0.0) 225,238 2002 193,354 (92.4) 14,727 (7.0) 1,065 (0.5) 81 (0.0) 209,229 2003 242,371 (94.9) 12,356 (4.8) 5,352 (0.2) 79 (0.0) 255,342 Notes: 1. Figures in parentheses indicate percentage of total. Notes: 2. "Other exchanges" include Kyoto, Hiroshima, Fukuoka, Niigata, Sapporo, and Kobe, but Kobe Exchange was dissolved Notes: 1. on October 31, 1967. TSE inherited companies listed on Hiroshima and Niigata Stock Exchanges in March 2000. 81 Notes: 3. Excluding foreign stocks Listed Companies, etc. in TSE and All Stock Exchanges in Japan

End No. of Shares Listed Market Value ofNo. of Cos. Listed (bils. of shares) (¥ bils.) Year Tokyo All Japan Tokyo All Japan Tokyo All Japan 1949 529 681 1 1 122 128 1950 583 764 2 2 168 179 1951 554 729 3 3 256 272 1952 575 758 4 4 640 675 1953 587 784 6 7 846 893 1954 599 782 8 9 743 782 1955 596 783 10 10 1,057 1,101 1956 596 786 15 14 1,640 1,704 1957 602 789 18 19 1,674 1,745 1958 601 786 21 22 2,322 2,409 1959 603 792 25 25 3,777 3,928 1960 599 785 33 33 5,411 5,643 1961 1,007 1,265 50 50 6,140 6,429 1962 1,183 1,455 60 62 7,661 8,002 1963 1,258 1,574 68 71 7,427 7,717 1964 1,270 1,591 78 81 7,425 7,694 1965 1,255 1,577 80 83 8,510 8,804 1966 1,246 1,562 82 86 9,389 9,736 1967 1,248 1,561 87 91 9,270 9,639 1968 1,242 1,552 93 97 12,664 13,133 1969 1,250 1,556 102 107 18,353 19,030 1970 1,280 1,580 114 119 16,235 16,824 1971 1,303 1,606 122 127 22,714 23,520 1972 1,323 1,627 131 136 48,054 49,548 1973 1,372 1,680 144 149 38,556 40,034 1974 1,390 1,709 152 158 36,042 37,469 1975 1,398 1,713 166 173 43,244 44,779 1976 1,401 1,716 175 181 52,993 54,922 1977 1,407 1,724 185 192 51,573 53,638 1978 1,389 1,709 192 199 66,341 69,064 1979 1,398 1,723 199 206 69,302 72,023 1980 1,402 1,729 208 216 77,074 79,952 1981 1,412 1,745 222 230 91,905 94,861 1982 1,427 1,769 231 240 98,090 101,241 1983 1,441 1,789 239 249 126,745 131,230 1984 1,444 1,802 248 258 161,811 167,495 1985 1,476 1,829 258 268 190,126 196,221 1986 1,499 1,866 267 277 285,471 293,02 1987 1,532 1,912 280 290 336,706 345,604 1988 1,571 1,967 295 305 476,849 488,065 HISTORICAL

1989 1,597 2,019 313 324 611,151 630,121 DATA 1990 1,627 2,071 327 338 379,231 393,594 1991 1,641 2,107 332 344 377,924 391,985 1992 1,651 2,118 334 346 289,483 299,275 1993 1,667 2,155 337 349 324,357 335,522 1994 1,689 2,205 342 354 358,392 371,024 1995 1,714 2,263 345 358 365,716 378,299 1996 1,766 2,334 348 361 347,578 358,538 1997 1,805 2,387 351 364 280,930 288,226 1998 1,838 2,416 347 360 275,181 281,521 1999 1,892 2,472 356 369 456,840 466,215 2000 2,055 2,560 351 362 360,554 364,747 2001 2,103 2,591 337 349 296,789 300,630 2002 2,119 2,576 321 333 247,860 251,000 2003 2,174 2,596 329 340 316,483 320,071 Note:1. Excluding foreign companies Note:2. Excluding companies whose fiscal terms were changed during the year concerned. 82 Equity Financing (All Listed Companies)

Public Prefered Private Exercise of Rights Offerings Offerings Stocks Placements Warrants Total Amount Amount Amount Amount Amount Amount No. of Raised No. of Raised No. of Raised No. of Raised No. of Raised No. of Raised Cases (¥ bils.) Cases (¥ bils.) Cases (¥ bils.) Cases (¥ bils.) Cases (¥ bils.) Cases (¥ bils.)

1955 126 64 4 0 — - 11 0 - - 141 64 1956 294 157 36 4 — - 11 2 - - 341 163 1957 292 199 40 5 — - 10 0 - - 342 205 1958 147 159 30 4 — - 3 0 - - 180 164 1959 158 152 50 10 — - 3 0 - - 211 163 1960 275 331 100 34 — - 4 0 - - 379 366 1961 465 631 223 79 1 0 6 0 - - 695 712 1962 554 586 171 19 — - 9 2 - - 734 609 1963 508 409 157 36 — - 8 7 - - 673 452 1964 434 524 85 3 — - 14 3 - - 533 531 1965 95 114 19 0 — - 8 2 - - 122 117 1966 173 202 34 1 — - 24 7 - - 231 211 1967 190 193 58 4 — - 13 3 - - 261 202 1968 201 302 80 9 — - 12 2 - - 293 314 1969 300 446 145 54 — - 14 4 - - 459 506 1970 316 538 203 138 — - 18 5 - - 537 681 1971 220 409 147 83 — - 24 44 - - 391 536 1972 180 283 275 665 — - 43 92 - - 498 1,041 1973 177 344 256 565 — - 45 30 - - 478 939 1974 214 243 193 277 — - 31 22 - - 438 544 1975 166 771 103 221 — - 16 8 - - 285 1,001 1976 102 179 180 488 1 12 11 8 - - 294 688 1977 120 290 238 603 — - 48 28 - - 406 922 1978 66 267 195 565 — - 52 63 - - 313 896 1979 54 261 229 628 — - 42 62 - - 325 953 1980 34 90 218 880 — - 28 80 - - 280 1,052 1981 67 493 249 1,396 — - 20 36 - - 336 1,926 1982 45 223 208 1,072 1 30 14 20 4 2 272 1,349 1983 18 134 72 471 — - 23 165 18 30 131 801 1984 23 90 127 815 1 5 18 65 39 65 208 1,043 1985 40 182 103 505 — - 18 33 70 137 231 859 1986 27 69 76 399 — - 16 30 116 372 235 872 1987 26 436 99 1,393 — - 22 109 241 1,073 388 3,013 1988 40 787 157 2,582 — - 23 103 316 1,309 536 4,782 1989 32 726 227 5,830 — - 22 102 435 2,189 716 8,848 1990 39 824 121 1,975 — - 21 314 397 677 578 3,792 1991 40 218 27 125 — - 19 103 309 360 395 807 1992 20 110 3 4 — - 22 102 127 203 172 419 1993 9 47 4 7 — - 14 150 184 617 211 822 1994 2 9 17 136 1 100 8 238 180 450 208 935 1995 12 95 8 33 1 50 19 160 118 299 158 638 1996 9 337 36 305 5 539 20 218 187 673 257 2,073

DATA 1997 9 72 26 128 2 223 19 369 88 368 144 1,162 1998 1 0 12 284 5 471 35 696 35 88 88 1,540

HISTORICAL 1999 - - 35 370 27 7,012 86 2,444 74 262 222 10,090 2000 2 8 36 572 5 137 56 972 94 107 193 1,798 2001 3 32 18 1,201 6 228 71 567 92 38 190 2,066 2002 - - 21 156 40 1,029 79 501 82 276 222 1,963 2003 3 1 40 572 75 2,537 103 233 126 39 347 3,385 Notes 1. The day after payment and the day of issuance are used as basic date for stocks and bonds respectively and amount Notes 1. raised by the companies listed on Japan's stock exchange (excluding the companies listed on Hercules at Osaka Notes 1. and registered on the OTC market) as of such basic date are aggregated. Notes 2. Amount raised of case for “Public Offering” made by newly Listing companies including companies whose shares Notes 1. are listed on Hercules at Osaka or registered on the OTC market are excluded. Notes 3. Number of cases for “Warrants and Stock Options Exercised” are monthly aggregates. Annual figures are number Notes 1. of companies. Figures in “Warrants and Stock Options Exercised” exclude cases where treasury stocks are Notes Notes 1. allotted in accordance with the exercise without issuing new shares. Notes 4. Figures in “Preferred Stocks and Tracking Stocks” include those for deferred stocks from January 2002.

83 TSE Foreign Stock Market

No. of Trading Volume (thous. of shares) Trading Value (¥ mils.) Listed Companies Total Daily Average Total Daily Average 1973 6 359 35 4,676 467 1974 14 2,307 8 30,037 105 1975 16 2,367 8 28,553 100 1976 17 2,120 7 29,164 101 1977 15 1,234 4 15,040 52 1978 15 846 2 9,096 31 1979 15 1,477 5 20,226 70 1980 15 670 2 7,948 27 1981 15 594 2 6,351 22 1982 12 1,271 4 18,257 64 1983 11 4,974 17 126,857 443 1984 11 4,522 15 93,117 324 1985 21 131,423 461 853,336 2,994 1986 52 309,700 1,110 1,151,863 4,128 1987 88 755,203 2,756 3,469,227 12,661 1988 112 216,331 792 795,251 2,913 1989 119 480,193 1,928 2,797,627 11,235 1990 125 256,251 1,041 2,015,601 8,193 1991 125 150,958 613 520,571 2,116 1992 119 86,239 349 157,011 635 1993 110 59,561 242 103,517 420 1994 93 43,746 177 75,148 304 1995 77 39,309 157 97,636 392 1996 67 63,452 256 167,434 677 1997 60 62,655 255 168,819 689 1998 52 22,131 89 88,686 359 1999 43 19,861 81 82,304 336 2000 41 13,407 54 67,614 273 2001 38 11,720 47 47,786 194 2002 34 11,364 54 53,593 217 2003 32 6,419 26 24,386 99

HISTORICAL

DATA

84 TOPIX (Tokyo Stock Price Index)

(Jan. 4, 1968=100) High Low Year-end Index Date Index Date 1949 12.85 22.06 5/16 11.95 12/14 1950 11.57 13.24 8/21 9.59 7/ 3 1951 16.94 17.11 10/20 11.58 1/ 4 1952 33.35 33.55 11/22 17.07 1/ 8 1953 33.30 42.18 2/ 4 28.46 4/ 1 1954 30.27 33.22 1/11 26.79 11/13 1955 39.06 39.06 12/28 30.00 3/28 1956 51.21 52.95 12/ 6 38.81 1/25 1957 43.40 54.82 1/21 43.18 12/27 1958 60.95 60.95 12/27 43.48 1/ 4 1959 80.00 90.14 11/30 61.11 1/ 9 1960 109.18 112.53 11/15 79.46 1/ 4 1961 101.66 126.59 7/14 90.86 12/19 1962 99.67 111.45 2/14 83.39 10/30 1963 92.87 122.96 5/10 91.21 12/18 1964 90.68 103.77 7/ 3 87.94 11/11 1965 105.68 105.68 12/28 81.29 7/15 1966 111.41 114.51 3/24 105.21 1/19 1967 100.89 117.60 5/31 99.17 12/11 1968 131.31 142.95 10/ 2 100.00 1/ 4 1969 179.30 179.30 12/27 132.62 1/ 4 1970 148.35 185.70 4/ 8 147.08 12/ 9 1971 199.45 209.00 8/14 148.05 1/ 6 1972 401.70 401.70 12/28 199.93 1/ 4 1973 306.44 422.48 1/24 284.69 12/18 1974 278.34 342.47 6/ 5 251.96 10/ 9 1975 323.43 333.11 7/ 2 268.24 1/10 1976 383.88 383.88 12/28 326.28 1/ 5 1977 364.08 390.93 9/29 350.49 11/24 1978 449.55 452.60 12/13 364.04 1/ 4 1979 459.61 465.24 9/29 435.13 7/13 1980 494.10 497.96 10/20 449.01 3/10 1981 570.31 603.92 8/17 495.79 1/ 5 1982 593.72 593.72 12/28 511.52 8/17 1983 731.82 731.82 12/28 574.51 1/25 1984 913.37 913.37 12/28 735.45 1/ 4 1985 1,049.40 1,058.35 7/27 916.93 1/ 4 1986 1,556.37 1,583.35 8/20 1,025.85 1/21 1987 1,725.83 2,258.56 6/11 1,557.46 1/13 1988 2,357.03 2,357.03 12/28 1,690.44 1/ 4

DATA 1989 2,881.37 2,884.80 12/18 2,364.33 3/27

HISTORICAL 1990 1,733.83 2,867.70 1/ 4 1,523.43 10/ 1 1991 1,714.68 2,028.85 3/18 1,638.06 12/24 1992 1,307.66 1,763.43 1/ 6 1,102.50 8/18 1993 1,439.31 1,698.67 9/ 3 1,250.06 1/25 1994 1,559.09 1,712.73 6/13 1,445.97 1/ 4 1995 1,577.70 1,585.87 12/27 1,193.16 6/13 1996 1,470.94 1,722.13 6/26 1,448.45 12/24 1997 1,175.03 1,560.28 6/26 1,130.00 12/22 1998 1,086.99 1,300.30 2/10 980.11 10/15 1999 1,722.20 1,722.20 12/30 1,048.33 1/ 5 2000 1,283.67 1,754.78 2/7 1,255.16 12/21 2001 1,032.14 1,440.97 5/7 988.98 12/17 2002 843.29 1,139.43 5/24 815.74 12/18 2003 1,043.69 1,105.59 10/20 770.62 3/11 85 10 Largest Day-to-Day Fluctuations in TOPIX 10 Largest Advances in TOPIX

Up in Closing Rank Date Background Percent Index 1 9.54 Oct. 2, 1990 1,668.83 MOF announces emergency measures to support the market. 2 9.39 Oct. 21, 1987 1,962.41 Backlash of the worldwide market crash 3 7.56 Aug. 21, 1992 1,251.70 MOF announces measures to reactivate the market 4 7.36 Dec. 15, 1949 12.83 Heavy buyings by life insurance companies and city banks 5 7.22 Apr. 10, 1992 1,282.56 Monetary relaxation in the U.S. 6 6.82 Nov. 17, 1997 1,257.85 Expectation of introduction of public funds to stabilize the financial sector 7 6.64 Jan 31, 1994 1,629.22 Approval of political reform bill 8 6.57 Jan 6, 1988 1,820.03 MOF the announces a relaxation of the rules restricting investment in Tokkin fund 9 6.39 Apr. 16, 1953 32.79 Expectation of continued procurement by U.S. in Japan after Korean War 10 6.32 Mar. 21. 200111.721,275.41 Positive anticipation of BOJ’s additional monetary easing policy implementations

10 Largest Declines in TOPIX

Down in Closing Rank Date Background Percent Index 1 14.62 Oct. 20, 1987 1,793.90 New York stock market crash 2 8.75 Mar. 5, 1953 32.32 Stalin seriously ill 3 7.47 Apr. 30, 1970 159.33 Worldwide stock market depression, IOS at pinch 4 7.10 Apr. 2, 1990 2,069.33 Fear of heavy selling by insurance companies 5 6.36 Sep. 12, 2001 990.80 Concerns about the world economy’s slowdown following the September 11 terrorist attacks in U.S.

6 6.12 Apr. 17, 2000 1,552,46 New York stock market depression due to inflation fear HISTORICAL

7 5.99 Mar. 30, 1953 30.31 Korean War truce negotiation resumed DATA 8 5.90 Aug. 16, 1971 196.66 Nixon announced “dollar defense” measures 9 5.70 Aug . 23, 1990 1,829.25 Oil prices soar due to Gulf conflict 10 5.28 Oct. 23, 2003 1,017.034 Depressed U.S. stock market and strong yen

86 Nikkei 225

(yen) High Low Year-end Index Date Index Date 1949 109.91 176.89 9/ 1 98.50 12/14 1950 101.91 114.99 8/21 85.25 7/ 6 1951 166.06 170.32 10/27 102.10 1/ 4 1952 362.64 370.55 12/15 167.80 1/ 4 1953 377.95 474.43 2/ 4 295.18 4/ 1 1954 356.09 377.27 1/11 314.08 3/22 1955 425.69 425.69 12/28 345.89 4/27 1956 549.14 566.30 12/ 6 420.14 1/25 1957 474.55 595.46 5/ 4 471.53 12/27 1958 666.54 666.54 12/27 475.20 1/ 4 1959 874.88 976.93 11/30 664.69 1/ 9 1960 1,356.71 1,356.71 12/28 869.34 1/ 4 1961 1,432.60 1,829.74 7/18 1,258.00 12/19 1962 1,420.43 1,589.76 2/14 1,216.04 10/29 1963 1,225.10 1,634.37 4/ 5 1,200.64 12/18 1964 1,216.55 1,369.00 7/ 3 1,202.69 11/ 9 1965 1,417.83 1,417.83 12/28 1,020.49 7/12 1966 1,452.10 1,588.73 4/ 1 1,364.34 12/ 5 1967 1,283.47 1,506.27 3/ 1 1,250.14 12/11 1968 1,714.89 1,851.49 10/ 2 1,266.27 1/ 4 1969 2,358.96 2,358.96 12/27 1,733.64 1/ 4 1970 1,987.14 2,534.45 4/ 6 1,929.64 5/27 1971 2,713.74 2,740.98 8/14 1,981.74 1/ 6 1972 5,207.94 5,207.94 12/28 2,712.31 1/ 4 1973 4,306.80 5,359.74 1/24 3,958.57 12/18 1974 3,817.22 4,787.54 6/ 1 3,355.13 10/ 9 1975 4,358.60 4,564.52 5/12 3,627.04 1/10 1976 4,990.85 4,990.85 12/28 4,403.06 1/ 5 1977 4,865.60 5,287.65 9/ 5 4,597.26 11/24 1978 6,001.85 6,097.26 12/13 4,867.91 1/ 4 1979 6,569.47 6,590.69 9/29 5,925.87 4/10 1980 7,116.38 7,188.28 11/ 6 6,475.93 3/28 1981 7,681.84 8,019.14 8/17 6,956.52 3/13 1982 8,016.67 8,026.99 12/ 7 6,849.78 10/ 1 1983 9,893.82 9,893.82 12/28 7,803.18 1/25 1984 11,542.60 11,577.44 12/ 4 9,703.35 7/23 1985 13,113.32 13,128.94 12/17 11,545.16 1/ 5 1986 18,701.30 18,936.24 8/20 12,881.50 1/21 1987 21,564.00 26,646.43 10/14 18,544.05 1/13 1988 30,159.00 30,159.00 12/28 21,217.04 1/ 4

DATA 1989 38,915.87 38,915.87 12/29 30,183.79 1/ 5

HISTORICAL 1990 23,848.71 38,712.88 1/ 4 20,221.86 10/ 1 1991 22,983.77 27,146.91 3/18 21,456.76 8/19 1992 16,924.95 23,801.18 1/ 6 14,309.41 8/18 1993 17,417.24 21,148.11 9/13 16,078.71 11/29 1994 19,723.06 21,552.81 6/13 17,369.74 1/ 4 1995 19,868.15 20,011.76 12/27 14,485.41 7/ 3 1996 19,361.35 22,666.80 6/26 19,161.71 12/24 1997 15,258.74 20,681.07 6/16 14,775.22 12/29 1998 13,842.17 17,264.34 3/ 2 12,879.97 10/ 9 1999 18,934.34 18,934.34 12/30 13,232.74 1/ 5 2000 13,785.69 20,833.21 4/12 13,423.21 12/21 2001 10,542.62 14,529.41 5/7 9,504.41 9/17 2002 8,578.95 11,979.85 5/23 8,303.39 11/14 2003 10,676.64 11,161.71 10/20 7,607.88 4/28 87 GLOBAL AND REGIONAL ORGANIZATIONS

WFE World Federation of Exchanges (WFE) Joined by New York Stock Exchange and the To- Chairman’s Exchange: kyo Stock Exchange in 1966 and 1970, respec- New York Stock Exchange tively, the Federation became an international or- Vice Chairman’s Exchange: ganization encompassing major stock exchanges Tokyo Stock Exchange in the world. The organization changed the name Established: 1961 into “World Federation of Exchanges” in 2001. Members: 54 exchanges (or national associations of Objective: The objective of the Federation is to con- stock exchanges) tribute to the development, support and promo- History: After the creation of the European Economic tion of organized and regulated securities markets Community (EEC), the “Association of European to meet the needs of the world’s capital markets Stock Exchanges” was inaugurated in 1957 by in the best interest of their users. stock exchanges in member countries of the EEC. Activities: The WFE holds a general meeting every Later in 1961, the Association was reorganized into autumn for discussion on topics of common inter- “The International Federation of Stock Exchanges” est to capital markets of the member countries. It with the participation of the London Stock Ex- adopts recommendations or resolutions as the change, and others. occasion demands.

World Federation of Exchange Members (as of end of April 2004)

EUROPE & AFRICA Athens Exchange Colombo Stock Exchange Bolsas y Mercados Españoles Hong Kong Exchanges and Clearing Borsa Italiana Spa Jakarta Stock Exchange Bourse de Luxembourg Korea Stock Exchange Budapest Stock Exchange Ltd. National Stock Exchange of India Limited Copenhagen Stock Exchange New Zealand Exchange Deutsche Börse AG Osaka Securities Exchange Euronext Amsterdam Philippine Stock Exchange Euronext Brussels Shanghai Stock Exchange Euronext Lisbon Shenzhen Stock Exchange Euronext Paris Singapore Exchange HEX Integrated Markets Ltd. Stock Exchange of Tehran Irish Stock Exchange Stock Exchange of Thailand Istanbul Stock Exchange Taiwan Stock Exchange Corp. JSE Securities Exchange, South Africa Tokyo Stock Exchange, Inc. Ljubljana Stock Exchange AMERICA London Stock Exchange American Stock Exchange Malta Stock Exchange Bermuda Stock Exchange Oslo Børs Bolsa de Comercio de Buenos Aires Stockholmsbörsen Bolsa de Comercio de Santiago SWX Swiss Exchange Bolsa de Valores de Lima

ORGANIZATIONS

Tel-Aviv Stock Exchange Bolsa de Valores do São Paulo AND REGIONAL

Warsaw Stock Exchange Bolsa Mexicana de Valores GLOBAL Wiener Börse AG Bourse de Montréal ASIA & PACIFIC Chicago Board Options Exchange Australian Stock Exchange NASD BSE The Stock Exchange, Mumbai New York Stock Exchange Bursa Malaysia TSX Group

88 EAOSEF East Asian and Oceanian Stock Exchanges Fed- formal, fraternal organization, was formed. In eration (EAOSEF) 1990, with the adoption of the Charter and also with admission of two stock exchanges Established: 1982 in the Oceanian region at its annual meeting Members: 15 stock exchanges in the East Asian in Manila, the organization was formalized and and Oceanian regions renamed as the East Asian and Oceanian Secretariat: Tokyo Stock Exchange, Inc. Stock Exchanges Federation or the EAOSEF History: The history of the EAOSEF goes back to in brevity. 1978 when top executives of stock exchanges Objective: The objective of the EAOSEF is to fa- in the East Asian countries first gathered in cilitate the exchange of information and to Tokyo at the joint invitation of the Tokyo Stock promote mutual assistance among its mem- Exchange and the Osaka Securities Exchange bers with a view to developing the securities on the occasion of the Centennial Anniversary markets of the member countries. of the Japanese securities markets. Such Activities: The EAOSEF holds a general meeting gathering was followed by their meeting in every year for exchanging information and Tokyo in 1982, at which the East Asian Stock discussing topics of the members’ common Exchange Conference (EASEC), a rather in- interest with a view to coordinating rules and practices of member exchanges.

EAOSEF MEMBER EXCHANGES (As of end of April 2004)

Australian Stock Exchange Ltd. Shanghai Stock Exchange Hong Kong Exchanges and Clearing Ltd. Shenzhen Stock Exchange Jakarta Stock Exchange Singapore Exchange Ltd. Korea Stock Exchange Surabaya Stock Exchange Bursa Malaysia Taiwan Stock Exchange Corp. New Zealand Exchange Ltd. The Stock Exchange of Thailand Osaka Securities Exchange Co., Ltd. Tokyo Stock Exchange, Inc. Philippine Stock Exchange, Inc.

GLOBAL

AND REGIONAL

ORGANIZATIONS

89 Organizational Structure As of end of June 2004

Auditors Office

Corporate Staff

Internal Auditing Office

Secretary Office

Audit Committee Corporate Planning

Overseas Offices Auditors (New York, London, Singapore)

General Administration Meeting of Board of President & Shareholders Directors CEO Human Resources

Treasury Committee of the Executive Officers Advisory Committee Business Units Market Structure Listing Division

Self-Regulation Listing

Discipline Listing Examination

New Listing Services

Self-Regulation Division

Market surveillance & Compliance

Participants Registration & Inspection

Cash Market Division

Equities

System Developments for Trading

Derivatives Market Division

Derivatives

Clearing & Settlement Division

Clearing & Settlement

Information Services Division

Information Services

System Developments for Subsidiaries: Japan Securities Settlement & Custody, Inc. Information Services Tosho System Service Co., Ltd. Japan Securities Clearing Corporation

90 Trading Participant List (108 companies)

Securities Companies Address Tel.

(Domestic) ACE SECURITIES CO.,LTD. 2-12, Nihombashi-Kayaba-cho, 3-chome, Chuo-ku, Tokyo 103-0025 03-5695-5111 AIZAWA SECURITIES CO.,LTD. 20-3, Nihombashi 1-chome, Chuo-ku, Tokyo 103-0027 03-3272-3112 AKAKIYA SECURITIES CO.,LTD. 7-1, Nihombashi 2-chome, Chuo-ku, Tokyo 103-0027 03-3271-0011 ALPS SECURITIES CO.,LTD. 3-3, Nihombashi-Kabuto-cho, Chuo-ku, Tokyo 103-0026 03-3665-0555 ANDO SECURITIES CO.,LTD. 4-1, Shinkawa 1-chome, Chuo-ku, Tokyo 104-0033 03-5541-6200 ARK SECURITIES CO.,LTD. 2-2, Marunouchi 2-chome, Chiyoda-ku, Tokyo 100-0005 03-5288-8100 Bright Securities Company,Limited 12-2, Nihombashi-Kayaba-cho, 3-chome, Chuo-ku, Tokyo 103-0025 03-5652-3131 Century Securities Co.,Ltd. 26-5, Nihombashi-Ningyo-cho, 2-chome, Chuo-ku, Tokyo 103-0013 03-3667-0371 Chuo Securities Co.,Ltd. 5-3, Nihombashi-Muromachi, 1-chome, Chuo-ku, Tokyo 103-0022 03-5202-3658 Cosmo Securities Co.,Ltd. 16-10, Nihombashi 1-chome, Chuo-ku, Tokyo 103-8277 03-3272-4611 DAISEI SECURITIES CO.,LTD. 1-10, Nihombashi-Kabuto-cho, Chuo-ku, Tokyo 103-0026 03-3661-6006 Daiwa Securities Co.Ltd. 6-4, Ohtemachi 2-chome, Chiyoda-ku,Tokyo 100-8101 03-3243-2111 Daiwa Securities SMBC Co.Ltd. 8-1, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-8289 03-5533-8000 DLJdirect SFG Securities Inc. 105, Kanda-Jimbo-cho, 1-chome, Chiyoda-ku,Tokyo 101-0051 03-5282-7510 DOJIMAKANTO Securities Co.,Ltd. 8-1, Kanda-Ogawa-cho, 1-chome, Chiyoda-ku, Tokyo 101-0052 03-3253-6725 E*TRADE SECURITIES CO.,LTD. 6-1, Roppongi 1-chome, Minato-ku, Tokyo 106-6019 03-5562-7210 Eiwa Securities Co.,Ltd. 6-3, Nihombashi-Kayaba-cho, 1-chome, Chuo-ku, Tokyo 103-0025 03-3639-5151 H.S. SECURITIES CO.,LTD. 8-1, Nishi-Shinjuku, 6-chome, Shinjuku-ku, Tokyo 163-6027 03-4560-0200 THE HIKARI SECURITIES CO.,LTD. 4-1, Nihombashi-Kakigara-cho, 1-chome, Chuo-ku, Tokyo 103-0014 03-5640-0880 HINODE SECURITIES CO.,LTD. 9-1, Hacchobori 2-chome, Chuo-ku, Tokyo 104-0032 03-3297-5111 HIROTA SECURITIES CO.,LTD. 7-3, Nihombashi-Kayaba-cho, 1-chome, Chuo-ku, Tokyo 103-0025 03-3667-1181 Ichiyoshi Securities Co.,Ltd. 14-1, Hacchobori 2-chome, Chuo-ku, Tokyo 104-0032 03-3555-6200 The Imamura Securities Co.,Ltd. 25 Jikken-machi Kanazawa-shi, Ishikawa 920-0906 076-263-5111 Iwai Securities Co.,Ltd. 9-4, Nihombashi-Kayaba-cho, 1-chome, Chuo-ku, Tokyo 103-0025 03-3662-7151 Japan Asia Securities Co.,Ltd. 7-9, Nihombashi-Kakigara-cho, 1-chome, Chuo-ku, Tokyo 103-0014 03-3668-8000 Jyujiya Securities Co.,Ltd. 6-17, Niombashi-Kayaba-cho, 1-chome, Chuo-ku, Tokyo 103-0025 03-3666-0101 kabu.com Securities Co.,Ltd. 28-25 Shinkawa 1-chome, Chuo-ku, Tokyo 104-0033 03-3551-5111 KANEJU SECURITIES CO.,LTD. 7-15, Nihombashi-Kabuto-cho, Chuo-ku, Tokyo 103-0026 03-3249-8500 Kaneyama Securities Co.,Ltd. 11-8, Nihombashi-Koami-cho, Chuo-ku, Tokyo 103-0016 03-3668-3111 KIMURA SECURITIES CO.,LTD. 22-11, Hacchobori 3-chome, Chuo-ku, Tokyo 104-0032 03-5566-0881 KOBE SECURITIES CO.,LTD. 6-21, Nishi-Shinbashi, 1-chome, Minato-ku,Tokyo 105-0003 03-3595-4133 The Kosei Securities Co.,Ltd. 9-9, Nihombashi-Kabuto-cho, Chuo-ku, Tokyo 103-0026 03-3667-7723 KUROKAWAKITOKU SECURITIES CO.,LTD 16-3, Nihombashi 1-chome, Chuo-ku, Tokyo 103-0027 03-3278-7800 KYOKUTO SECURITIES CO.,LTD. 4-7, Nihombashi-Kayaba-cho, 1-chome, Chuo-ku, Tokyo 103-0025 03-3667-9171 Kyowa Securities Co.,Ltd. 8-3, Nihombashi-Kabuto-cho, Chuo-ku, Tokyo 103-0026 03-3666-1381 MAEDA SECURITIES CO.,LTD. 3-3, Nihombashi-Kabuto-cho, Chuo-ku, Tokyo 103-0026 03-5652-7000 Marufuku Securities Co.,Ltd. 4-2, Hacchobori 1-chome, Chuo-ku, Tokyo 104-0032 03-3297-9111 Maruhachi Securities Co.,Ltd. 11-10, Nihombashi-Kayaba-cho, 3-chome, Chuo-ku, Tokyo 103-0025 03-3639-0808 MARUKUNI SECURITIES CO.,LTD. 10-2, Nihombashi-Koami-cho, Chuo-ku, Tokyo 103-0016 03-3666-0922 Marusan Securities Co.,Ltd. 5-2, Nihombashi 2-chome, Chuo-ku, Tokyo 103-8258 03-3272-5211 MARUWA SECURITIES CO.,LTD. 5-1, Hacchobori 1-chome, Chuo-ku, Tokyo 104-0032 03-3206-4871 MATSUI SECURITIES CO.,LTD. 4, Koujimachi 1-chome, Chiyoda-ku, Tokyo 102-8516 03-5216-0606 MEIWA SECURITIES CO.,LTD. 7-15, Nihombashi-Kabuto-cho, Chuo-ku, Tokyo 103-0026 03-3666-2541 Merrill Lynch Japan Securities Co.,Ltd. 4-1, Nihombashi 1-chome, Chuo-ku, Tokyo 103-8230 03-6225-7000 MIKI SECURITIES CO.,LTD. 20-9, Nihombashi 1-chome, Chuo-ku, Tokyo 103-0027 03-3278-1111 MITA SECURITIES Co.,Ltd. 6-17, Nihombashi-Kayaba-cho, 1-chome, Chuo-ku, Tokyo 103-0025 03-3666-1001 Mito Securities Co.,Ltd. 13-5, Nihombashi 3-chome, Chuo-ku, Tokyo 103-0027 03-3274-6111 Mitsubishi Securities Co.,Ltd. 4-1, Marunouchi 2-chome, Chiyoda-ku, Tokyo 100-6317 03-6213-8500 The Mizuho Investors Securities Co.,Ltd. 13-16, Nihombashi-Kayaba-cho, 1-chome, Chuo-ku, Tokyo 103-8658 03-5640-5111 Mizuho Securities Co.,Ltd. 5-1, Ohtemachi 1-chome, Chiyoda-ku,Tokyo 100-0004 03-5208-3210 Monex,Inc. 11-1, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-6219 03-6212-3800 The Murosei Securities Co.,Ltd. 1-10, Nihombashi-Kabuto-cho, Chuo-ku, Tokyo 103-0026 03-3666-1451

LIST

TRADING NAGANO SECURITIES CO.,LTD. 606-8, Minami-Nagano, Nishigo-cho, Nagano-shi, Nagano 380-0845 026-235-2001 PARTICIPANT NAITO SECURITIES CO.,LTD. 14-8, Nihombashi-Ningyo-cho, 1-chome, Chuo-ku, Tokyo 103-0013 03-3668-2090 The Nakahara Securities Co.,Ltd. 4-1, Nihombashi-Muromachi, 4-chome, Chuo-ku, Tokyo 103-0022 03-3231-4311 The Naruse Securities Co.,Ltd. 4-2, Nihombashi-Kabuto-cho, Chuo-ku, Tokyo 103-0026 03-3666-2101

91 (As of end of April 2004)

Securities Companies Address Tel.

Nihon Kyoei Securities Co.,Ltd. 2-18, Nihombashi-Kayaba-cho, 1-chome, Chuo-ku, Tokyo 103-0025 03-3668-2211 Niigata Securities Co.,Ltd. 8-26, Jyonai-cho, 3-chome, Nagaoka-shi, Niigata 940-0061 0258-36-9110 Nikko Beans, Inc. 28-38 Shinkawa 1-chome, Chuo-ku, Tokyo 104-0033 03-5566-2525 Nikko Citigroup Limited 2-20, Akasaka 5-chome, Minato-ku, Tokyo 107-6122 03-5574-4111 Nikko Cordial Securities Inc. 6-5, Nihombashi-Kabuto-cho, Chuo-ku, Tokyo 103-8225 03-5644-3111 Nippon Global Securities Co.,Ltd. 13-2, Nihombashi-Kabuto-cho, Chuo-ku, Tokyo 103-0026 03-3666-4301 NISHIMURA SECURITIES CO.,LTD. Takakura-nishiiri, shijyodouri Shimogyou-Ku, Kyoto-shi, Kyoto 600-8007 075-221-2155 NISSAN SECURITIES CO.,LTD. 7-6, Nihombashi-Kabuto-cho, Chuo-ku, Tokyo 103-0026 03-3666-3151 Nomura Securities Co.,Ltd. 9-1, Nihombashi 1-chome, Chuo-ku, Tokyo 103-8011 03-3211-1811 Nozomi Securities Co.,Ltd. 24-2, Hacchobori 2-chome, Chuo-ku, Tokyo 104-0032 03-3297-2980 OKACHI SECURITIES CO.,LTD. 3-12, Nihombashi-Kayaba-cho, 1-chome, Chuo-ku, Tokyo 103-0025 03-3668-3661 OKASAN SECURITIES CO.,LTD. 17-6, Nihombashi 1-chome, Chuo-ku, Tokyo 103-8278 03-3272-2211 ORIX Securities Corporation 3-8, Nihombashi-Ningyo-cho, 1-chome, Chuo-ku, Tokyo 103-0013 03-5614-3500 Retela Crea Securities Co.,Ltd. 6-11, Nihombashi-Kayaba-cho, 1-chome, Chuo-ku, Tokyo 103-0025 03-3667-4411 San-ei Securities Co.,Ltd. 12-7, Kyobashi 3-chome, Chuo-ku, Tokyo 104-0031 03-3562-3321 SANKO SECURITIES CO.,LTD. 13-4, Yoyogi 2-chome, Shibuya-ku, Tokyo 151-0053 03-5371-3111 Shinko Securities Co.,Ltd. 4-1, Yaesu 2-chome, Chuo-ku,Tokyo 104-8481 03-5203-6000 SMBC Friend Securities Co.,Ltd. 7-12, Nihombashi-Kabuto-cho, Chuo-ku, Tokyo 103-8221 03-3669-3211 Socius Securities Co.,Ltd. 2-15, Nihombashi-Muromachi, 3-chome, Chuo-ku, Tokyo 103-0022 03-3271-2311 THE TACHIBANA SECURITIES CO.,LTD. 13-14, Nihombashi-Kayaba-cho, 1-chome, Chuo-ku, Tokyo 103-0025 03-3669-3111 TAKAGI SECURITIES CO.,LTD. 8-3, Nihombashi-Muromachi, 1-chome, Chuo-ku, Tokyo 103-0022 03-3281-3231 Tokai Tokyo Securities Co.,Ltd. 7-1, Kyobashi 1-chome, Chuo-ku, Tokyo 104-8317 03-3566-8811 TOYO SECURITIES CO.,LTD. 20-5, Nihombashi 1-chome, Chuo-ku, Tokyo 103-8678 03-3274-0211 UFJ Tsubasa Securities Co.,Ltd. 1-3, Ohtemachi 1-chome, Chiyoda-ku,Tokyo 100-8138 03-5222-8350 UTSUMIYA SECURITIES CO.,LTD. 12-4, Nihombashi-Kayaba-cho, 1-chome, Chuo-ku, Tokyo 103-0025 03-3661-8855 WORLD NICHIEI FRONTIER Securities Co.,Ltd. 1-6, Nihombashi-Kabuto-cho, Chuo-ku, Tokyo 103-0026 03-3661-4520 YAHATA SECURITIES CO.,LTD. 1-9, Ohtemachi 3-chome, Naka-ku, Hiroshima-shi, Hiroshima 730-0051 082-243-3700 YAMAGEN SECURITIES CO.,LTD. 1-17, Nihombashi-Ningyo-cho, 3-chome, Chuo-ku, Tokyo 103-0013 03-3662-4451 Yamamaru Securities Co.,Ltd. 3-11, Nihombashi-Kabuto-cho, Chuo-ku, Tokyo 103-0026 03-3668-0211 Yamani Securities Co.,Ltd. 6-17, Nihombashi-Kayaba-cho, 1-chome, Chuo-ku, Tokyo 103-0025 03-3666-1151 YAMAWA SECURITIES CO.,LTD. 1-3, Nihombashi-Kabuto-cho, Chuo-ku, Tokyo 103-0026 03-3668-5410 The Yutaka Securities Co.,Ltd. 10-14, Nihombashi-Horidome-cho, 1-chome, Chuo-ku, Tokyo 103-0012 03-3668-3621

(Foreign) Banc of America Securities-Japan,Inc. 11-1, Nagata-cho, 2-chome, Chiyoda-ku,Tokyo 100-6115 03-3508-6000 BARCLAYS CAPITAL JAPAN LIMITED 2-2, Ohtemachi 2-chome, Chiyoda-ku,Tokyo 100-0004 03-3276-1100 BNP PARIBAS Securities (Japan) Limited 7-2, Ohtemachi 1-chome, Chiyoda-ku,Tokyo 100-0004 03-5290-8000 Calyon Capital Markets Asia B.V. 2-3, Uchisaiwai-cho, 2-chome, Chiyoda-ku,Tokyo 100-0011 03-5512-5900 COMMERZ SECURITIES (JAPAN) COMPANY LIMITED 2-1, Marunouchi 1-chome, Chiyoda-ku,Tokyo 100-0005 03-5293-9000 CREDIT AGRICOLE INDOSUEZ SECURITIES(JAPAN) LIMITED 29, Kanda-Jimbo-cho, 3-chome, Chiyoda-ku, Tokyo 101-0051 03-3261-8707 CREDIT SUISSE FIRST BOSTON SECURITIES(JAPAN) LIMITED 3-1, Toranomon 4-chome, Minato-ku, Tokyo 105-6002 03-5404-9000 Deutsche Securities Limited 11-1, Nagata-cho, 2-chome, Chiyoda-ku,Tokyo 100-6171 03-5156-6000 Dresdner Kleinwort Wasserstein(Japan) Limited 1-8, Toranomon 4-chome, Minato-ku, Tokyo 105-0001 03-5403-9500 Goldman Sachs (Japan) Ltd. 10-1, Roppongi 6-chome, Minato-ku, Tokyo 106-6147 03-6437-1000 HSBC SECURITIES (JAPAN) LIMITED 11-1, Nihombashi 3-chome, Chuo-ku, Tokyo 103-0027 03-5203-3111 ING SECURITIES (JAPAN) LIMITED 4-1, Kioi-cho, Chiyoda-ku, Tokyo 102-8566 03-5210-1500 INSTINET JAPAN LIMITED 9-9, Roppongi 1-chome, Minato-ku, Tokyo 106-0032 03-5562-1800 J.P. MORGAN SECURITIES ASIA PRIVATE LIMITED 2-20, Akasaka 5-chome, Minato-ku, Tokyo 107-6151 03-5573-1111 KBC FINANCIAL PRODUCTS UK LIMITED 17-7, Akasaka 2-chome, Minato-ku, Tokyo 107-0052 03-3587-8500 Lehman Brothers Japan Inc. 10-1, Roppongi 6-chome, Minato-ku, Tokyo 106-6131 03-6440-3000

Morgan Stanley Japan Limited 20-3, Ebisu 4-chome, Shibuya-ku, Tokyo 150-6008 03-5424-5000 PARTICIPANT

TRADING

Societe Generale Securities (North Pacific) Ltd 12-32, Akasaka 1-chome, Minato-ku, Tokyo 107-6015 03-5549-5120 LIST UBS Securities Japan Ltd 5-1, Ohtemachi 1-chome, Chiyoda-ku,Tokyo 100-0004 03-5208-6000 WESTLB SECURITIES PACIFIC LIMITED 10-1, Roppongi 6-chome, Minato-ku, Tokyo 106-6137 03-6439-8030

92 Publications In addition to the TSE Fact Book, Tokyo Stock Exchange, Inc. provides the following publications:

TSE Monthly Statistics Report To April 2003 (¥ 750) From May 2003 (¥ 472) Compiled chiefly from the market statistics of the securities admitted to trading on TSE

Guide to Listing on Mothers ¥300 Guide to TSE Trading Methodology (3rd edition) ¥500

( * The prices above include consumption tax.)

For further information, please contact:

Head Office Tokyo Stock Exchange, Inc. Public Relations 2-1, Nihombashi-Kabuto-cho Chuo-ku, Tokyo 103-8220 Japan Tel: (81) 3-3666-0141 e-mail: [email protected]

Representative Offices Tokyo Stock Exchange, Inc. Tokyo Stock Exchange, Inc. Tokyo Stock Exchange, Inc. New York Representative Office London Representative Office Singapore Representative Office 45 Broadway, 4th Floor, Peninsular House, 16 Raffles Quay #11-02 New York N.Y. 10006 USA 36 Monument Street, London Hong Leong Building EC3R 8LJ UK Singapore 048581 Tel: (1) 212-363-2350 Tel: (44) 20-7236-0885 Tel: (65) 6438-5100 e-mail: [email protected] e-mail: [email protected] e-mail: [email protected]

Co-edited by E&CCS Japan, Ltd.