FTSE Russell Factsheet FTSE Japan 100 Shariah Index Data as at: 31 August 2021 bmkTitle1 The FTSE Japan 100 Shariah Index has been designed to be used as the basis of Shariah- FEATURES compliant investment products that meet the requirements of Islamic investors in Japan and internationally. Independent screening is carried out by Yasaar Limited, an organisation with a Coverage global network of expert Shariah scholars. Their approach is described below. Shariah-compliant Japanese stocks in the

FTSE Global Equity Shariah Index Series. Using the Large and Mid Cap stocks from the FTSE Global Equity Index Series as a base universe, the top 100 Shariah-compliant Japanese constituents, by market capitalisation are then Objective

selected to form the FTSE Japan 100 Shariah Index. The index is designed for use in the creation

of Shariah-compliant investment products Business Activity Screening

and as a benchmark. Initially, companies involved in any of the following activities will be filtered out as non Shariah- compliant: Investability Stocks are selected and weighted to ensure • Conventional finance (non-Islamic banking, finance and insurance, etc.); that the index is investable. • Alcohol; • Pork related products and non-halal food production, packaging and processing or any other Liquidity activity related to pork and non-halal food; Stocks are screened to ensure that the index

• Entertainment (casinos, gambling and pornography); is tradable. • Tobacco; weapons, arms and defence manufacturing.

Transparency

The index uses a transparent, rules-based Financial Ratios Screening construction process. Index Methodologies The remaining companies are then further screened on a financial basis. The following financial are freely available on the FTSE Russell ratios must be met for companies to be considered Shariah-compliant: website.

• Debt is less than 33.333% of total assets; Asset-based debt screening • Cash and interest bearing items are less than 33.333% of total assets; Unlike other competitor methodologies, a • Accounts receivable and cash are less than 50% of total assets; more conservative approach to Shariah • Total interest and non compliant activities income should not exceed 5% of total revenue.

compliance is ensured by rating debt ratio

5-Year Performance - Total Return limits that are measured as a percentage of

(JPY) total assets, rather than more volatile 170 measures that use 12 month trailing market 160 capitalisation. This ensures companies do 150 140 not pass the screening criteria due to market 130 price fluctuation, allowing the methodology 120 to be less speculative and more in keeping 110 100 with Shariah principles. 90 School-neutral Aug-2016 Aug-2017 Aug-2018 Aug-2019 Aug-2020 Aug-2021 Data as at month end Yasaar Limited scholars represent all of the major Shariah schools of thought, creating a FTSE Japan 100 Shariah Index FTSE Japan best practices approach that has credibility

across the Islamic world.

Industry Classification Benchmark

(ICB)

Index constituents are categorized in accordance with the Industry Classification Benchmark (ICB), the global standard for

industry sector analysis. Source: FTSE Russell as at 31 August 2021. Past performance is no guarantee of future results. 1 of 4 Shariah Methodology Returns shown before the index launch date reflect hypothetical historical performance. Please see disclaimer for important legal information. See www.yasaar.org for further information FTSE Japan 100 Shariah Index Data as at: 31 August 2021

Performance and Volatility - Total Return INFORMATION

Index (JPY) Return % Return pa %* Volatility %** Index Universe 3M 6M YTD 12M 3YR 5YR 3YR 5YR 1YR 3YR 5YR Shariah-compliant stocks within the FTSE FTSE Japan 100 Shariah Index 2.1 5.7 11.2 26.0 23.8 69.7 7.4 11.2 16.1 18.2 14.6 Japan Index (Large and Mid Cap) FTSE Japan 1.8 6.2 10.1 24.7 23.8 67.3 7.4 10.8 14.8 17.9 14.5

Index Launch * Compound annual returns measured over 3 and 5 years respectively

** Volatility – 1YR based on 12 months daily data. 3YR based on weekly data (Wednesday to Wednesday). 5YR based on monthly data 30 July 2007

Year-on-Year Performance - Total Return Base Date

Index % (JPY) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 29 September 2003 FTSE Japan 100 Shariah Index -15.4 13.5 54.8 17.6 11.0 0.8 24.4 -16.9 18.1 10.6 Base Value FTSE Japan -18.0 21.5 54.8 10.3 11.5 -0.3 21.0 -15.3 18.3 8.9

1000

Return/Risk Ratio and Drawdown - Total Return Investability Screen

Index (JPY) Return/Risk Ratio Drawdown (%) Actual free float applied and liquidity

1YR 3YR 5YR 10YR 1YR 3YR 5YR 10YR screened

FTSE Japan 100 Shariah Index 1.7 0.4 0.8 0.8 -7.1 -30.6 -31.3 -31.3 Index Calculation FTSE Japan 1.6 0.4 0.7 0.7 -6.9 -29.6 -31.3 -31.3

Real time (calculated every 15 seconds) and

Return/Risk Ratio – based on compound annual returns and volatility in Performance and Volatility table end-of-day indices available. Drawdown - based on daily data

End-of-Day-Distribution

Top 10 Constituents Via FTP and email Constituent ICB Sector Net MCap (JPYm) Wgt % Review Dates Recruit Holdings Industrial Support Services 8,674,803 4.38 Quarterly in March, June, September, SoftBank Group Telecommunications Service Providers 8,383,307 4.23 December Daikin Industries Construction and Materials 7,257,180 3.66

Shin-Etsu Chemical Chemicals 7,217,455 3.64 Currency

Tokyo Electron Technology Hardware and Equipment 6,969,809 3.52 Yen and USD

Nidec Corp Technology Hardware and Equipment 5,839,634 2.95

KDDI Corp Telecommunications Service Providers 5,655,734 2.85

Hitachi Electronic and Electrical Equipment 5,624,887 2.84

Murata Manufacturing Technology Hardware and Equipment 5,189,767 2.62

SoftBank Telecommunications Service Providers 4,006,472 2.02

Totals 64,819,048 32.70

Source: FTSE Russell as at 31 August 2021. Past performance is no guarantee of future results. 2 of 4 Returns shown before the index launch date reflect hypothetical historical performance. Please see disclaimer for important legal information. FTSE Japan 100 Shariah Index Data as at: 31 August 2021

ICB Supersector Breakdown

FTSE Japan 100 Shariah Index FTSE Japan

ICB Code ICB Supersector No. of Net MCap (JPYm) Wgt % No. of Net MCap (JPYm) Wgt % Cons Cons

1010 Technology 17 41,409,004 20.89 52 59,642,235 12.00

1510 Telecommunications 4 21,590,239 10.89 8 22,469,418 4.52

2010 Health Care 9 20,180,266 10.18 38 49,103,773 9.88

3010 Banks - - - 22 22,934,283 4.62

3020 Financial Services - - - 14 9,608,828 1.93

3030 Insurance - - - 7 11,355,651 2.29

3510 Real Estate - - - 33 19,683,422 3.96

4010 Automobiles and Parts 6 11,881,418 5.99 26 47,693,745 9.60

4020 Consumer Products and Services 7 11,161,390 5.63 32 43,488,042 8.75

4030 Media 1 893,345 0.45 8 2,123,939 0.43

4040 Retailers 2 2,102,220 1.06 18 14,242,906 2.87

4050 Travel and Leisure 2 749,460 0.38 14 6,737,570 1.36

4510 Food Beverage and Tobacco 3 2,300,418 1.16 30 17,154,226 3.45

Personal Care Drug and Grocery 4520 4 5,874,777 2.96 18 11,115,359 2.24 Stores

5010 Construction and Materials 6 10,767,471 5.43 23 14,587,953 2.94

5020 Industrial Goods and Services 25 49,074,655 24.76 101 108,119,203 21.76

5510 Basic Resources 3 3,248,334 1.64 14 6,381,624 1.28

5520 Chemicals 7 13,314,886 6.72 31 21,297,543 4.29

6010 Energy 2 1,963,188 0.99 4 2,720,913 0.55

6510 Utilities 2 1,706,755 0.86 14 6,413,896 1.29

Totals 100 198,217,827 100.00 507 496,874,531 100.00

Index Characteristics

Attributes FTSE Japan 100 Shariah Index FTSE Japan

Number of constituents 100 507

Net MCap (JPYm) 198,217,827 496,874,531

Dividend Yield % 1.72 1.99

Constituent Sizes (Net MCap JPYm)

Average 1,982,178 980,029

Largest 8,674,803 23,598,705

Smallest 285,099 29,846

Median 1,268,705 385,236

Weight of Largest Constituent (%) 4.38 4.75

Top 10 Holdings (% Index MCap) 32.70 20.48

31 August 2021

Source: FTSE Russell as at 31 August 2021. Past performance is no guarantee of future results. 3 of 4 Returns shown before the index launch date reflect hypothetical historical performance. Please see disclaimer for important legal information. FTSE Japan 100 Shariah Index Data as at: 31 August 2021

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Source: FTSE Russell as at 31 August 2021. Past performance is no guarantee of future results. 4 of 4 Returns shown before the index launch date reflect hypothetical historical performance. Please see disclaimer for important legal information.