Selection of Companies for 2019 Competitive IT Strategy Company Stock Selection and and Noteworthy IT Strategy Companies Programs Announced - METI and the TSE selected outstanding listed companies implementing a Competitive IT Strategy to enhance corporate value - The Ministry of Economy, Trade and Industry (METI) and the Tokyo Stock Exchange (TSE) have jointly been conducting a selection of outstanding companies for their efforts for IT utilization under the Competitive IT Strategy Company Stock Selection program. METI hereby announces that METI and the TSE have selected 29 companies under the 2019 Competitive IT Strategy Company Stock Selection program and 20 companies under the 2019 Noteworthy IT Strategy Companies program. These programs were held five times this year. 1. Outline of the Competitive IT Strategy Company Stock Selection program The program targets TSE-listed companies proactively engaging in efforts for IT utilization to improve management innovations, earnings and productivity in terms of improving mid- to long-term corporate value and fortifying competitiveness. METI and the TSE select such companies among all TSE-listed companies as Competitive IT Strategy Company Stocks by sector and introduce them to the public. In the 2019 program, METI and the TSE assessed companies that have been engaging in promotion of efforts for digital transformation (DX)* in accordance with the DX Promotion Guidelines and whose management has strongly been committed to such efforts. To assess companies’ current efforts for IT utilization, METI conducted a survey titled “2019 Survey of Competitive IT Strategies,” targeting all TSE-listed companies. In screening candidate companies, METI assigned scores to the responses concerning the following five areas and financial situation, and finally selected 29 companies screened by the final examination of the examination committee. As part of the program, for the fifth time this year, aiming to strongly encourage companies’ efforts for DX, METI and the TSE selected one outstanding company for its leadership in the digital era among the selected companies above and honored the winner with the “DX Grand Prix.” *Note: The term “DX” refers to a situation where a company deals with dramatic changes in business environments, changes its products, services and business models so as to meet the demands of customers and society by taking advantage of data and digital technologies and changes its services per se, organizations, processes, corporate and business culture so that it can establish competitive advantages. I. Utilization of IT to increase corporate value in terms of management policies and plans II. Strategic utilization of IT to increase corporate value III. Systems and personnel for promoting the Competitive IT Strategy IV. Fundamental initiatives supporting the Competitive IT Strategy V. Initiatives focused on evaluating and improving IT investment to increase corporate value Selection criteria: 1. Score of the questionnaire responses and ROE should be above a specified level. 2. Assessment score by the examination committee should be above a specified level. 3. Companies should be committing no serious violations of law and regulations. 2. List of the 2019 Competitive IT Strategy Companies (29 companies, in the order of industry category and securities code) Reference Securities Company name Industry category code Selected Selected Selected Selected in 2018 in 2017 in 2016 in 2015 1928 Sekisui House, Ltd. Construction • • 2502 Asahi Group Holdings, Ltd. Food • • • • Fabricated textile • 3401 Teijin Ltd. products 8113 Unicharm Corporation Chemicals 4523 Eisai Co., Ltd. Pharmaceuticals Petroleum and coal 5020 JXTG Holdings, Inc. products 5108 Bridgestone Corporation Rubber products • • • • 5411 JFE Holdings, Inc. Iron and steel • • • • 6301 Komatsu Ltd. Machinery • • 6501 Hitachi, Ltd. Electrical equipment • • • 6702 Fujitsu Ltd. Electrical equipment • • 7911 Toppan Printing Co., Ltd. Other Products • 7912 Dai Nippon Printing Co., Ltd. Other Products Kansai Electric Power • 9503 Electricity and gas Company, Incorporated 9020 East Japan Railway Company Land transportation • • • • ANA Holdings, Inc. 9202 Air Transportation • [Winner of the DX Grand Prix] Information and • • • 4689 Yahoo Japan Corporation communication ITOCHU Techno-Solutions Information and • • 4739 Corporation communication 8031 Mitsui & Co., Ltd. Wholesale trade • • • • 8174 Nippon Gas Co., Ltd. Retail trade • • • 8252 Marui Group Co., Ltd. Retail trade Sumitomo Mitsui Financial • 8316 Banking Group, Inc. Securities and • 8601 Daiwa Securities Group Inc. Commodity Futures Trade MS&AD Insurance Group 8725 Insurance Holdings, Inc. Other financial • • • • 8439 Tokyo Century Corporation services 8801 Mitsui Fudosan Co., Ltd. Real estate 8802 Mitsubishi Estate Co., Ltd. Real estate 2168 Pasona Group Inc. Services 2432 DeNA Co., Ltd. Services • Reference: TSE news release: 3. List of the 2019 Noteworthy IT Strategy Companies (20 companies, in the order of industry category and securities code) In this category, METI and the TSE selected companies that marked high scores in the comprehensive evaluation or those engaging in noteworthy IT efforts, excluding those already selected in the 2019 Competitive IT Strategy Company Stock Selection program. This category aims to expand the base of the Competitive IT Strategy Companies program, in light of many companies engaging in outstanding efforts for IT utilization, other than those selected in the Competitive IT Strategy Companies program. Reference Securities Industry Company name Selected Selected Selected Selected code category in 2018 in 2017 in 2016 in 2015 1963 JGC Corporation Construction Sumitomo Chemical • • 4005 Chemicals Company, Limited Mitsubishi Chemical 4188 Chemicals Holdings Corporation 4452 Kao Corporation Chemicals • 4902 Konica Minolta, Inc. Electrical equipment • Oki Electric Industry Co., 6703 Electrical equipment Ltd. Chubu Electric Power Co., 9502 Electricity and gas Inc. 9143 SG Holdings Co., Ltd. Land transportation Information and 3762 Techmatrix Corporation communication Information and 3919 PiPEDO HD, Inc. communication Information and 4384 RAKSUL Inc. communication Information and 4385 Mercari, Inc. communication Information and 9719 SCSK Corporation communication 3134 Hamee Corp. Retail trade • • • 8251 PARCO Co., Ltd. Retail trade Fukuoka Financial Group, 8354 Banking Inc. 8630 Sompo Holdings, Inc. Insurance • AEON Financial Service Co., Other financial 8570 Ltd. services 2378 Renaissance Incorporated Services 6083 ERI Holdings Co., Ltd. Services Release date April 23, 2019 Division in charge IT Innovation Division, Commerce and Information Policy Bureau, METI .