Introducing the New JPX-Nikkei Index 400
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November 7, 2013
Japan: Portfolio Strategy
Introducing the New
JPX-Nikkei Index 400
Portfolio Strategy Research
Focus on ROE, governance, size and liquidity
New ROE-focused index to be launched Kathy Matsui
+81(3)6437-9950 kathy.matsui@gs.com
In an effort to promote the appeal of quality Japanese companies as well Goldman Sachs Japan Co., Ltd.
as encourage the improvement of corporate value and a greater emphasis
on capital efficiency, the Japan Exchange Group and Nikkei Inc. have just Hiromi Suzuki
+81(3)6437-9955 hiromi.suzuki@gs.com
announced their new jointly-developed stock index, the “JPX-Nikkei Index Goldman Sachs Japan Co., Ltd.
400”, which will be launched Jan. 6, 2014. The constituents have been
selected on the basis of ROE, governance, size and liquidity criteria. Kazunori Tatebe
+81(3)6437-9898 kazunori.tatebe@gs.com
Goldman Sachs Japan Co., Ltd.
Comparison vs. TOPIX: Makes Japan appear more attractive
Tsumugi Akiba
The new index would exhibit a higher ROE, lower P/E ratio, and a higher +81(3)6437-9966 tsumugi.akiba@gs.com
dividend yield. In other words, it will make the Japanese market appear Goldman Sachs Japan Co., Ltd.
more attractive overall. Using current stock prices, our comparison of
sector weightings vs. TOPIX shows potentially higher weightings for
electrical appliances, raw materials, machinery, transportation,
pharmaceuticals, wholesale trade, retail, real estate and food. We believe
sectors with lower weightings would include autos, banks, nonbank
financials, construction, and electric power & gas.
A deliberate focus on ROE; key will be how much traction
This new ROE-focused index is clearly unique, and seems to be a
deliberate effort to encourage companies and investors to focus more on
profitability and capital efficiency. It waits to be seen how much traction
the new index will have, but since the Nikkei has reported that the
Government Pension Investment Fund (GPIF) may consider shifting the
current benchmark for its domestic equity investments from TOPIX to the
new JPX-Nikkei 400 index, this could prompt other institutions to follow.
Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors
should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors
should consider this report as only a single factor in making their investment decision. For Reg AC certification and other
important disclosures, see the Disclosure Appendix, or go to www.gs.com/research/hedge.html. Analysts employed by
non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S.
The Goldman Sachs Group, Inc. Global Investment ResearchNovember 7, 2013 Japan
JPX-Nikkei Index 400: Constituent criteria
As mentioned in our Oct. 11 report, 4Q Focus: Earnings, Policy, and Growth
Outperformance, the Japan Exchange Group (JPX) and Nikkei Inc. have announced the
details of their new stock index called “JPX-Nikkei Index 400.”1
The new index constituents have been released and the index will start to be calculated
from the beginning of 2014. The key selection criteria of the index constituents include:
Selection criteria for constituents
• Eligible stock universe: TSE-listed stocks (1st Section, 2nd Section, Mothers,
JASDAQ)
(1) Screening
• Screening by eligibility criteria: Stocks are excluded if they fall under any of
the following criteria: listed for fewer than 3 years, liabilities in excess of
assets during any of the past 3 fiscal years, operating deficit in all of the past 3
fiscal years, overall deficit in all of the past 3 fiscal years, designated as
“Security to be delisted.”
• Screening by market liquidity: The top 1,000 issues will be selected from those
eligible stocks in consideration of (a) trading value during the most recent 3
years and (b) market cap on the base date for selection.
(2) Scoring based on Quantitative Indicators: The 1,000 issues selected in (1) will
be scored according to the ranking of the following 3 items. (1st: 1000 points.
1000th: 1 point.) Then, overall score is determined by aggregating those
ranking scores with the following weights: (a) 3-year average ROE: 40%; (b) 3-
year cumulative operating profit: 40%; (c) market capitalization on the base
date for selection: 20%.
(3) Scoring based on Qualitative factors: Following the quantitative scoring in (2),
issues will be further scored based on the following 3 items. This score is
complementarily added to the quantitative scores explained above in (2)*. (a)
appointment of at least 2 independent outside directors; (b) adoption or
scheduled adoption of IFRS; (c) disclosure of English earnings information via
TDnet system (English company announcement distribution service).
* The score is determined so that at most around 10 constituents are different
from those chosen with only quantitative score above in (2).
(4) Determination of constituents and review: Following scoring in (3), 400 stocks
will be selected in descending order of high scores as constituents.
Constituent review: A constituent review will be conducted on the last business
day of August each year with the last business day of June as the base date for
selection.
(5) Calculation method: Free-float adjusted market capitalization-weighted (with
1.5% cap).
1
For details, see official JPX/Nikkei joint press release: http://www.tse.or.jp/english/news/17/b7gje6000001nr5o-
att/b7gje6000001nr8v.pdf
Goldman Sachs Global Investment Research 2November 7, 2013 Japan
(6) Start date of calculation: January 6, 2014 (Mon). Real-time dissemination (per
1 second) of the index via Tokyo Stock Exchange’s Market Information System.
(7) Base date/value for index calculation: August 30, 2013 / 10,000 points
The list of 400 index constituents can be found in the Appendix.
Comparison vs. TOPIX/Nikkei 225
While the new index will not be launched until January 6, 2014, we examined the
differences between the new index and TOPIX/Nikkei 225.
1. Profitability and valuations: Using stock prices as of Nov. 5, we compared the
combined ROE and valuation metrics of the new JPX-Nikkei 400 index with those
of TOPIX (see Exhibit 1). As expected, the new index would exhibit a higher ROE,
lower P/E ratio, and a higher dividend yield. In other words, the new index would
make the Japanese market appear more attractive overall.
2. Sector weightings: Using stock prices as of Nov. 5, we estimated the sector
weightings of the new JPX-Nikkei 400 index vs. TOPIX (see Exhibit 2). Sectors that
will likely see increased weightings compared to TOPIX include: electrical
appliances, IT services, raw materials, machinery, transportation, pharmaceuticals,
wholesale trade, retail, real estate, food, steel & nonferrous metals, and energy.
Meanwhile sectors that we expect will see decreased weightings include: autos,
banks, nonbank financials, construction, and electric power & gas.
3. Compared to the existing Nikkei 225 index (price-weighted index), there are 59
Nikkei 225 constituents that will be excluded from the JPX-Nikkei 400 index,
including large-caps such as Panasonic, MS&AD Insurance, Daiwa Securities and
Mazda Motor (see Exhibit 3).
4. Since there is a limit of 1.5% per constituent stock within the new index, Exhibit 4
contains a list of stocks whose free-float adjusted market cap weightings within the
new index may exceed 1.5% (based on our calculations using Nov. 5 prices) such
as Toyota Motor and Softbank.
Exhibit 1: JPX-Nikkei 400 index vs. TOPIX—New index would make Japanese equities
appear more attractive
Div Yld ROE ROE
PE FY1 PE FY2 PB
FY1 FY1 FY2
New Index 14.7 13.7 1.4 2.0 9.5 10.2
Topix 15.1 13.9 1.3 1.9 8.8 9.6
Source: I/B/E/S, Toyo Keizai, Factset, Goldman Sachs Global Investment Research
Goldman Sachs Global Investment Research 3November 7, 2013 Japan
Exhibit 2: Sector weight comparison
%
14
New Index*
12
TOPIX
10
8
6
4
2
0
New Index* TOPIX Diff.
Pharmaceutical 5.4 4.4 1.0
Machinery 6.1 5.2 0.9
Retail 5.1 4.2 0.9
Electric Appl. 13.5 12.7 0.8
Real Estate 4.5 3.7 0.7
Wholesale Trade 5.3 4.6 0.7
IT & Services Others 11.2 10.7 0.5
Transportation 5.6 5.1 0.5
Raw Materials 6.6 6.3 0.3
Energy Res. 1.3 1.1 0.3
Foods 4.3 4.1 0.2
Steel & Nonferrous 3.0 2.8 0.2
Financials Ex Bk 5.1 5.4 -0.4
Const. & Materials 3.9 4.4 -0.5
Electric Pwr & Gas 1.0 2.4 -1.3
Banks 8.2 9.9 -1.6
Autos 9.9 13.1 -3.2
Note: GS assumed, as of Nov. 5.
Source: TSE, Goldman Sachs Global Investment Research.
Goldman Sachs Global Investment Research 4November 7, 2013 Japan
Exhibit 3: Nikkei 225 constituents which will be excluded from the JPX-Nikkei Index 400
MCap MCap
Ticker Name Sector Ticker Name Sector
JPYbn JPYbn
6857 Advantest Corp. Electric Appliances 223 7912 Dai Nippon Printing Co., Ltd. Other Products 732
6113 Amada Co., Ltd. Machinery 338 1802 Obayashi Corporation Construction 446
6770 Alps Electric Co., Ltd. Electric Appliances 165 6976 Taiyo Yuden Co., Ltd. Electric Appliances 148
7733 Olympus Corp. Precision Instruments 1,074 2531 Takara Holdings Inc. Foods 206
6103 Okuma Corp. Machinery 146 9107 Kawasaki Kisen Kaisha, Ltd. Marine Transportation 210
6952 Casio Computer Co., Ltd. Electric Appliances 266 3401 Teijin Limited Textiles & Apparels 214
2501 Sapporo Holdings Limited Foods 173 5413 Nisshin Steel Holdings Co., Ltd. Iron & Steel 145
7762 Citizen Holdings Co, Ltd. Precision Instruments 230 5202 Nippon Sheet Glass Company Glass & Ceramics Products 113
6753 Sharp Corp. Electric Appliances 478 5333 NGK Insulators, Ltd. Glass & Ceramics Products 546
9412 SKY Perfect JSAT Holdings Inc. Information & Communication 191 3863 Nippon Paper Industries Co., Ltd. Pulp & Paper 185
4043 Tokuyama Corporation Chemicals 138 9101 Nippon Yusen Kabushiki Kaisha Marine Transportation 512
6752 Panasonic Corporation Electric Appliances 2,534 6701 NEC Corp. Electric Appliances 565
5803 Fujikura Ltd Nonferrous Metals 160 3110 Nitto Boseki Co., Ltd. Glass & Ceramics Products 116
7261 Mazda Motor Corp. Transportation Equipment 1,302 3105 Nisshinbo Holdings Inc. Textiles & Apparels 152
6479 Minebea Co., Ltd. Electric Appliances 253 9681 Tokyo Dome Corporation Services 130
7951 Yamaha Corporation Other Products 287 8804 Tokyo Tatemono Co., Ltd. Real Estate 396
7752 Ricoh Company, Ltd. Electric Appliances 749 9501 Tokyo Electric Power Company Electric Power & Gas 857
4183 Mitsui Chemicals, Inc. Chemicals 234 3101 Toyobo Co., Ltd. Textiles & Apparels 169
7003 Mitsui Engineering & Shipbuilding Transportation Equipment 155 5901 Toyo Seikan Group Holdings Ltd. Metal Products 433
9301 Mitsubishi Logistics Corporation Warehousing 230 8628 Matsui Securities Co., Ltd. Securities 282
9502 Chubu Electric Power Company Electric Power & Gas 1,076 6841 Yokogawa Electric Corp. Electric Appliances 347
8252 Marui Group Co., Ltd. Retail Trade 294 6703 OKI Electric Industry Company Electric Appliances 165
4005 Sumitomo Chemical Co., Ltd. Chemicals 604 1803 Shimizu Corporation Construction 392
5232 Sumitomo Osaka Cement Co., Ltd. Glass & Ceramics Products 169 5406 Kobe Steel, Ltd. Iron & Steel 536
7911 Toppan Printing Co., Ltd. Other Products 546 9503 The Kansai Electric Power Company Electric Power & Gas 1,124
5801 Furukawa Electric Co., Ltd. Nonferrous Metals 169 8725 MS&AD Insurance Group Holdings Insurance 1,610
9104 Mitsui O.S.K.Lines,Ltd. Marine Transportation 501 8630 NKSJ Holdings, Inc. Insurance 1,052
8601 Daiwa Securities Group Inc. Securities 1,604 6472 NTN Corporation Machinery 224
7735 Dainippon Screen Mfg. Co., Ltd Electric Appliances 129 3436 Sumco Corporation Metal Products 221
4506 Dainippon Sumitomo Pharma Pharmaceutical 539
Source: Japan Exchange Group, TSE, Nikkei, Goldman Sachs Global Investment Research
Exhibit 4: Stocks within the JPX-Nikkei 400 index whose free-float adjusted market cap
weights may exceed the 1.5% limit
Ticker Name
7203 Toyota Motor Corp.
9984 SoftBank Corp.
8306 Mitsubishi UFJ Financial Group, Inc.
7267 Honda Motor Co., Ltd.
2914 Japan Tobacco Inc.
8316 Sumitomo Mitsui Financial Group, Inc.
8411 Mizuho Financial Group, Inc.
Note: GS assumed, as of Nov. 5.
Source: TSE, Goldman Sachs Global Investment Research
Goldman Sachs Global Investment Research 5November 7, 2013 Japan
Implications: Greater focus on ROE
While this is not the first time that a new stock index has been launched, we believe this
one will be important to watch. As we have previously noted, the Nikkei newspaper
reported on October 5 that the GPIF, the world’s largest pension fund with over $1.2 tn in
assets, may consider shifting its current benchmark for its domestic equity investments
from TOPIX to the new JPX-Nikkei index.
Furthermore, proxy voting and research firm Institutional Shareholder Services (ISS) is
considering incorporating ROE as a factor in its Japan voting guidelines for nominations of
executives of Japanese firms from 2014.
Compared to popular benchmark indices in the rest of the world, this new index is unique
in that it is focused on factors such as ROE and governance in addition to size and liquidity
considerations. It waits to be seen how much traction this new index will have, but if
bellwether institutions such as the GPIF ultimately adopt it, we believe there is a good
chance that other institutions will follow.
Goldman Sachs Global Investment Research 6November 7, 2013 Japan
Appendix: JPX-Nikkei Index 400 constituents
The constituents of the new JPX-Nikkei 400 index are contained in Exhibits 5-7.
Exhibit 5: JPX-Nikkei 400 index constituents
MCap MCap
Ticker Name Sector Ticker Name Sector
JPYbn JPYbn
1417 Mirait Holdings Corporation Construction 75 3099 Isetan Mitsukoshi Holdings Ltd. Retail Trade 586
1605 Inpex Corporation Mining 1,654 3116 Toyota Boshoku Corp. Transportation Equipment 231
1721 Comsys Holdings Corporation Construction 200 3141 Welcia Holdings Co., Ltd. Retail Trade 113
1722 Misawa Homes Co., Ltd. Construction 67 3167 Tokai Holdings Corporation Wholesale Trade 52
1801 Taisei Corporation Construction 569 3231 Nomura Real Estate Holdings, Inc. Real Estate 466
1808 Haseko Corporation Construction 219 3289 Tokyu Fudosan Holdings Corp. Real Estate 609
1812 Kajima Corporation Construction 442 3291 Iida Group Holdings Co., Ltd. Real Estate 615
1878 Daito Trust Construction Co., Ltd. Construction 793 3315 Nippon Coke & Engineering Company Oil & Coal Products 36
1911 Sumitomo Forestry Co., Ltd. Construction 205 3349 Cosmos Pharmaceutical Corporation Retail Trade 236
1925 Daiwa House Industry Co., Ltd. Construction 1,264 3360 Ship Healthcare Holdings, Inc. Wholesale Trade 163
1928 Sekisui House, Ltd. Construction 928 3382 Seven & I Holdings Co., Ltd. Retail Trade 3,182
1951 Kyowa Exeo Corporation Construction 137 3391 Tsuruha Holdings Inc. Retail Trade 211
1963 JGC Corp. Construction 970 3402 Toray Industries, Inc. Textiles & Apparels 989
1983 Toshiba Plant Systems & Services Co Construction 164 3405 Kuraray Co., Ltd. Chemicals 430
2002 Nisshin Seifun Group Inc. Foods 285 3407 Asahi Kasei Corporation Chemicals 1,059
2131 Accordia Golf Co., Ltd. Services 120 3632 Gree, Inc. Information & Communication 189
2212 Yamazaki Baking Co., Ltd. Foods 220 3738 T-Gaia Corporation Information & Communication 79
2267 Yakult Honsha Co., Ltd. Foods 862 3765 Gungho Online Entertainment, Inc. Information & Communication 674
2269 Meiji Holdings Co., Ltd. Foods 411 3774 Internet Initiative Japan Inc. Information & Communication 129
2270 Megmilk Snow Brand Co., Ltd. Foods 95 3861 Oji Holdings Corp. Pulp & Paper 470
2282 Nippon Meat Packers, Inc. Foods 343 3941 Rengo Co., Ltd. Pulp & Paper 137
2371 Kakaku.Com, Inc. Services 438 4004 Showa Denko K.K. Chemicals 205
2413 M3, Inc. Services 407 4021 Nissan Chemical Industries, Ltd. Chemicals 251
2432 Dena Co., Ltd. Services 328 4042 Tosoh Corporation Chemicals 239
2502 Asahi Group Holdings,Ltd. Foods 1,319 4045 Toagosei Co., Ltd. Chemicals 114
2503 Kirin Holdings Company, Limited Foods 1,391 4061 Denki Kagaku Kogyo Kabushiki Kaish Chemicals 194
2593 ITO EN,Ltd. Foods 196 4063 Shin-Etsu Chemical Co., Ltd. Chemicals 2,433
2607 Fuji Oil Co., Ltd. Foods 151 4088 Air Water Inc. Chemicals 271
2651 Lawson, Inc. Retail Trade 776 4091 Taiyo Nippon Sanso Corporation Chemicals 282
2670 ABC-MART, INC. Retail Trade 371 4095 Nihon Parkerizing Co., Ltd. Chemicals 124
2681 GEO Holdings Corporation Retail Trade 50 4114 Nippon Shokubai Co., Ltd. Chemicals 241
2685 Adastria Holdings Co., Ltd. Retail Trade 108 4151 Kyowa Hakko Kirin Co., Ltd. Pharmaceutical 604
2702 Mcdonalds Holdings Company Japan, Retail Trade 360 4185 JSR Corp. Chemicals 428
2726 Pal Co., Ltd. Retail Trade 62 4188 Mitsubishi Chemical Holdings CorporaChemicals 654
2767 Fields Corporation Wholesale Trade 62 4201 The Nippon Synthetic Chemical IndustChemicals 91
2768 Sojitz Corp. Wholesale Trade 233 4202 Daicel Corporation Chemicals 288
2782 Seria Co., Ltd. Retail Trade 134 4204 Sekisui Chemical Co., Ltd. Chemicals 597
2801 Kikkoman Corporation Foods 379 4205 Zeon Corporation Chemicals 273
2802 Ajinomoto Co., Inc. Foods 817 4206 Aica Kogyo Company, Limited Chemicals 135
2809 Kewpie Corporation Foods 223 4208 UBE Industries, Ltd. Chemicals 208
2871 Nichirei Corporation Foods 146 4217 Hitachi Chemical Company, Ltd. Chemicals 306
2875 Toyo Suisan Kaisha, Ltd. Foods 328 4272 Nippon Kayaku Co., Ltd. Chemicals 244
2897 Nissin Foods Holdings Co., Ltd. Foods 480 4307 Nomura Research Institute,Ltd. Information & Communication 721
2914 Japan Tobacco Inc. Foods 7,060 4324 Dentsu Inc. Services 1,061
3048 BIC Camera Inc. Retail Trade 85 4452 Kao Corp. Chemicals 1,656
3064 Monotaro Co., Ltd. Retail Trade 142 4502 Takeda Pharmaceutical Co. Ltd. Pharmaceutical 3,708
3086 J.Front Retailing Co., Ltd. Retail Trade 398 4503 Astellas Pharma Inc. Pharmaceutical 2,536
3088 Matsumotokiyoshi Holdings Co., Ltd. Retail Trade 178 4507 Shionogi & Co., Ltd. Pharmaceutical 760
3092 Start Today Co., Ltd. Retail Trade 326 4508 Mitsubishi Tanabe Pharma Corporatio Pharmaceutical 762
3098 Cocokara Fine Inc. Retail Trade 67 4519 Chugai Pharmaceutical Co., Ltd. Pharmaceutical 1,257
4521 Kaken Pharmaceutical Co., Ltd. Pharmaceutical 155 5214 Nippon Electric Glass Co., Ltd. Glass & Ceramics Products 251
4523 Eisai Co., Ltd. Pharmaceutical 1,158 5233 Taiheiyo Cement Corporation Glass & Ceramics Products 520
4527 Rohto Pharmaceutical Co., Ltd. Pharmaceutical 165 5332 Toto Ltd. Glass & Ceramics Products 513
4528 ONO Pharmaceutical Co., Ltd. Pharmaceutical 845 5334 NGK Spark Plug Co., Ltd. Glass & Ceramics Products 503
4530 Hisamitsu Pharmaceutical Co., Inc. Pharmaceutical 493 5393 Nichias Corporation Glass & Ceramics Products 83
4534 Mochida Pharmaceutical Co., Ltd. Pharmaceutical 139 5401 Nippon Steel & Sumitomo Metal Corp. Iron & Steel 2,984
4536 Santen Pharmaceutical Co., Ltd. Pharmaceutical 403 5411 JFE Holdings, Inc. Iron & Steel 1,347
4540 Tsumura & Co. Pharmaceutical 214 5471 Daido Steel Co., Ltd. Iron & Steel 227
4541 Nichi-Iko Pharmaceutical Co., Ltd. Pharmaceutical 99 5486 Hitachi Metals, Ltd. Iron & Steel 552
4543 Terumo Corporation Precision Instruments 881 5631 The Japan Steel Works, Ltd. Machinery 200
Source: Japan Exchange Group, TSE, Nikkei
Goldman Sachs Global Investment Research 7November 7, 2013 Japan
Exhibit 6: JPX-Nikkei 400 index constituents cont’d
MCap MCap
Ticker Name Sector Ticker Name Sector
JPYbn JPYbn
4544 Miraca Holdings Inc. Services 257 5706 Mitsui Mining and Smelting Company, Nonferrous Metals 142
4553 Towa Pharmaceutical Co., Ltd. Pharmaceutical 81 5711 Mitsubishi Materials Corp. Nonferrous Metals 497
4555 Sawai Pharmaceutical Co., Ltd. Pharmaceutical 226 5713 Sumitomo Metal Mining Co., Ltd. Nonferrous Metals 769
4568 Daiichi Sankyo Company, Limited Pharmaceutical 1,300 5714 Dowa Holdings Co., Ltd. Nonferrous Metals 278
4569 Kyorin Holdings, Inc. Pharmaceutical 154 5802 Sumitomo Electric Industries, Ltd. Nonferrous Metals 1,151
4581 Taisho Pharmaceutical Holdings Co., Pharmaceutical 622 5857 Asahi Holdings, Inc. Nonferrous Metals 59
4612 Nippon Paint Co., Ltd. Chemicals 435 5938 LIXIL Group Corp. Metal Products 709
4613 Kansai Paint Co., Ltd. Chemicals 351 5947 Rinnai Corporation Metal Products 398
4631 DIC Corporation Chemicals 255 5949 Unipres Corporation Transportation Equipment 87
4634 Toyo Ink SC Holdings Co., Ltd. Chemicals 147 5970 G-Tekt Corporation Metal Products 64
4661 Oriental Land Co., Ltd. Services 1,399 5991 NHK Spring Co., Ltd. Metal Products 244
4666 Park24 Co., Ltd. Real Estate 287 6136 OSG Corporation Machinery 157
4676 Fuji Media Holdings, Inc. Information & Communication 475 6146 Disco Corporation Machinery 203
4681 Resorttrust, Inc. Services 188 6201 Toyota Industries Corp. Transportation Equipment 1,396
4684 OBIC Co., Ltd. Information & Communication 301 6256 Nuflare Technology, Inc. Machinery 173
4689 Yahoo Japan Corporation Information & Communication 2,721 6268 Nabtesco Corporation Machinery 287
4704 Trend Micro Incorporated Information & Communication 503 6273 SMC Corporation Machinery 1,558
4708 Moshi Moshi Hotline, Inc. Services 81 6301 Komatsu Ltd. Machinery 2,041
4716 Oracle Corporation Japan Information & Communication 491 6302 Sumitomo Heavy Industries, Ltd. Machinery 284
4732 USS Co., Ltd. Services 451 6305 Hitachi Construction Machinery Co., L Machinery 432
4739 Itochu Techno-Solutions Corporation Information & Communication 232 6326 Kubota Corporation Machinery 1,947
4751 Cyberagent, Inc. Services 218 6361 Ebara Corporation Machinery 241
4755 Rakuten, Inc. Services 1,753 6366 Chiyoda Corp. Construction 321
4768 Otsuka Corporation Information & Communication 395 6367 Daikin Industries, Ltd. Machinery 1,647
4842 Usen Corporation Information & Communication 53 6370 Kurita Water Industries Ltd. Machinery 251
4901 Fujifilm Holdings Corporation Chemicals 1,250 6371 Tsubakimoto Chain Co. Machinery 125
4902 Konica Minolta, Inc. Electric Appliances 449 6412 Heiwa Corporation Machinery 160
4911 Shiseido Company,Limited Chemicals 673 6417 Sankyo Co., Ltd. Machinery 446
4924 Dr.Ci:Labo Co., Ltd. Chemicals 83 6425 Universal Entertainment Corporation Machinery 160
4967 Kobayashi Pharmaceutical Co., Ltd. Chemicals 230 6448 Brother Industries, Ltd. Electric Appliances 310
5002 Showa Shell Sekiyu K.K. Oil & Coal Products 403 6460 Sega Sammy Holdings Inc. Machinery 695
5012 Tonengeneral Sekiyu K.K. Oil & Coal Products 518 6463 TPR Co., Ltd. Machinery 62
5019 Idemitsu Kosan Co., Ltd. Oil & Coal Products 329 6465 Hoshizaki Electric Co., Ltd. Machinery 254
5020 JX Holdings, Inc. Oil & Coal Products 1,268 6471 NSK Ltd. Machinery 560
5101 Yokohama Rubber Co. Ltd. Rubber Products 320 6473 Jtekt Corp. Machinery 414
5105 Toyo Tire & Rubber Co., Ltd. Rubber Products 139 6474 Nachi-Fujikoshi Corp. Machinery 118
5108 Bridgestone Corporation Rubber Products 2,626 6481 THK Co., Ltd. Machinery 280
5110 Sumitomo Rubber Industries, Ltd. Rubber Products 345 6501 Hitachi,Ltd. Electric Appliances 3,287
5196 Kinugawa Rubber Industrial Co., Ltd. Transportation Equipment 34 6502 Toshiba Corp. Electric Appliances 1,729
5201 Asahi Glass Co., Ltd. Glass & Ceramics Products 710 6503 Mitsubishi Electric Corp. Electric Appliances 2,304
6504 Fuji Electric Co., Ltd. Electric Appliances 332 7309 Shimano Inc. Transportation Equipment 770
6506 Yaskawa Electric Corporation Electric Appliances 310 7313 TS Tech Co., Ltd. Transportation Equipment 228
6586 Makita Corporation Machinery 672 7451 Mitsubishi Shokuhin Co., Ltd. Wholesale Trade 155
6594 Nidec Corporation Electric Appliances 1,340 7453 Ryohin Keikaku Co., Ltd. Retail Trade 275
6645 Omron Corp. Electric Appliances 862 7458 Daiichikosho Co., Ltd. Wholesale Trade 167
6674 GS Yuasa Corporation Electric Appliances 231 7516 Kohnan Shoji Co., Ltd. Retail Trade 35
6702 Fujitsu Limited Electric Appliances 876 7522 Watami Co., Ltd. Retail Trade 62
6727 Wacom Co., Ltd. Electric Appliances 124 7532 Don Quijote Co., Ltd. Retail Trade 481
6754 Anritsu Corporation Electric Appliances 182 7550 Zensho Holdings Co., Ltd. Retail Trade 128
6755 Fujitsu General Limited Electric Appliances 132 7581 Saizeriya Co., Ltd. Retail Trade 62
6758 Sony Corporation Electric Appliances 1,733 7593 VT Holdings Co., Ltd. Retail Trade 48
6762 TDK Corporation Electric Appliances 533 7599 Gulliver International Co., Ltd. Wholesale Trade 62
6806 Hirose Electric Co., Ltd. Electric Appliances 591 7606 United Arrows Ltd. Retail Trade 157
6845 Azbil Corporation Electric Appliances 172 7649 Sugi Holdings Co., Ltd. Retail Trade 260
6849 Nihon Kohden Corporation Electric Appliances 185 7729 Tokyo Seimitsu Co., Ltd Precision Instruments 75
6856 Horiba , Ltd. Electric Appliances 147 7731 Nikon Corp. Precision Instruments 695
6861 Keyence Corporation Electric Appliances 2,429 7739 Canon Electronics Inc. Electric Appliances 76
6869 Sysmex Corporation Electric Appliances 645 7741 Hoya Corp. Precision Instruments 1,094
6902 Denso Corp. Transportation Equipment 4,168 7751 Canon Inc. Electric Appliances 4,088
6923 Stanley Electric Co., Ltd. Electric Appliances 405 7832 Namco Bandai Holdings Inc. Other Products 408
6954 Fanuc Corporation Electric Appliances 3,624 7860 Avex Group Holdings Inc. Information & Communication 110
6965 Hamamatsu Photonics K.K. Electric Appliances 311 7936 Asics Corporation Other Products 337
6971 Kyocera Corporation Electric Appliances 1,863 7947 FP Corporation Chemicals 163
6981 Murata Manufacturing Co., Ltd. Electric Appliances 1,777 7956 Pigeon Corporation Other Products 203
6988 Nitto Denko Corp. Chemicals 874 7966 Lintec Corporation Other Products 153
7004 Hitachi Zosen Corporation Machinery 121 7988 Nifco Inc. Chemicals 138
7011 Mitsubishi Heavy Industries, Ltd. Machinery 2,122 8001 Itochu Corporation Wholesale Trade 1,894
7012 Kawasaki Heavy Industries Ltd. Transportation Equipment 654 8002 Marubeni Corporation Wholesale Trade 1,317
7013 IHI Corporation Machinery 596 8012 Nagase & Co., Ltd. Wholesale Trade 167
7201 Nissan Motor Co., Ltd. Transportation Equipment 3,892 8015 Toyota Tsusho Corp. Wholesale Trade 872
Source: Japan Exchange Group, TSE, Nikkei
Goldman Sachs Global Investment Research 8November 7, 2013 Japan
Exhibit 7: JPX-Nikkei 400 index constituents cont’d
MCap MCap
Ticker Name Sector Ticker Name Sector
JPYbn JPYbn
7202 Isuzu Motors Limited Transportation Equipment 1,008 8020 Kanematsu Corporation Wholesale Trade 56
7203 Toyota Motor Corp. Transportation Equipment 21,791 8028 Familymart Co., Ltd. Retail Trade 424
7205 Hino Motors,Ltd. Transportation Equipment 772 8031 Mitsui & Co.,Ltd Wholesale Trade 2,484
7211 Mitsubishi Motors Corporation Transportation Equipment 690 8035 Tokyo Electron Ltd. Electric Appliances 961
7240 NOK Corporation Transportation Equipment 260 8036 Hitachi High-Technologies Corp. Wholesale Trade 299
7242 Kayaba Industry Co., Ltd. Transportation Equipment 117 8051 Yamazen Corporation Wholesale Trade 57
7245 Daido Metal Co., Ltd. Transportation Equipment 42 8053 Sumitomo Corporation Wholesale Trade 1,556
7246 Press Kogyo Co., Ltd. Transportation Equipment 46 8058 Mitsubishi Corporation Wholesale Trade 3,267
7248 Calsonic Kansei Corporation Transportation Equipment 122 8088 Iwatani Corporation Wholesale Trade 112
7259 Aisin Seiki Co., Ltd. Transportation Equipment 1,139 8113 Unicharm Corporation Chemicals 1,225
7262 Daihatsu Motor Co., Ltd. Transportation Equipment 787 8129 Toho Holdings Co., Ltd. Wholesale Trade 145
7267 Honda Motor Co., Ltd. Transportation Equipment 7,119 8136 Sanrio Company, Ltd. Wholesale Trade 443
7269 Suzuki Motor Corp. Transportation Equipment 1,380 8214 Aoki Holdings Inc. Retail Trade 153
7270 Fuji Heavy Industries Ltd. Transportation Equipment 2,100 8218 Komeri Co., Ltd. Retail Trade 130
7272 Yamaha Motor Co., Ltd. Transportation Equipment 501 8227 Shimamura Co., Ltd. Retail Trade 399
7276 Koito Manufacturing Co., Ltd. Electric Appliances 288 8233 Takashimaya Company, Limited Retail Trade 303
7278 Exedy Corporation Transportation Equipment 140 8253 Credit Saison Co., Ltd. Other Financing Business 478
7280 Mitsuba Corporation Electric Appliances 62 8267 AEON Co., Ltd. Retail Trade 1,106
7282 Toyoda Gosei Co., Ltd. Transportation Equipment 306 8270 UNY Group Holdings Co., Ltd. Retail Trade 143
7296 F.C.C.Co., Ltd. Transportation Equipment 115 8273 Izumi Co., Ltd. Retail Trade 251
8282 K'S Holdings Corporation Retail Trade 176 9001 Tobu Railway Co., Ltd. Land Transportation 532
8303 Shinsei Bank, Limited Banks 602 9003 Sotetsu Holdings, Inc. Land Transportation 178
8304 Aozora Bank,Ltd. Banks 462 9005 Tokyu Corporation Land Transportation 833
8306 Mitsubishi UFJ Financial Group, Inc. Banks 8,711 9007 Odakyu Electric Railway Co., Ltd. Land Transportation 678
8308 Resona Holdings, Inc. Banks 1,174 9008 Keio Corporation Land Transportation 427
8309 Sumitomo Mitsui Trust Holdings, Inc. Banks 1,827 9009 Keisei Electric Railway Co., Ltd. Land Transportation 348
8316 Sumitomo Mitsui Financial Group, Inc.Banks 6,632 9020 East Japan Railway Company Land Transportation 3,286
8327 The Nishi-Nippon City Bank, Ltd. Banks 208 9021 West Japan Railway Company Land Transportation 863
8331 The Chiba Bank, Ltd. Banks 604 9022 Central Japan Railway Company Land Transportation 2,573
8332 The Bank Of Yokohama, Ltd. Banks 704 9031 Nishi-Nippon Railroad Co., Ltd. Land Transportation 149
8333 The Joyo Bank, Ltd. Banks 387 9041 Kintetsu Corporation Land Transportation 671
8334 Gunma Bank, Ltd. Banks 264 9042 Hankyu Hanshin Holdings, Inc. Land Transportation 687
8354 Fukuoka Financial Group, Inc. Banks 376 9045 Keihan Electric Railway Co., Ltd. Land Transportation 224
8355 The Shizuoka Bank, Ltd. Banks 719 9048 Nagoya Railroad Co., Ltd. Land Transportation 252
8356 The Juroku Bank, Ltd. Banks 145 9062 Nippon Express Co., Ltd. Land Transportation 517
8358 Suruga Bank Ltd. Banks 395 9064 Yamato Holdings Co., Ltd. Land Transportation 959
8359 The Hachijuni Bank, Ltd. Banks 312 9065 Sankyu Inc. Land Transportation 113
8369 The Bank Of Kyoto, Ltd. Banks 316 9086 Hitachi Transport System,Ltd. Land Transportation 167
8377 Hokuhoku Financial Group, Inc. Banks 268 9202 ANA Holdings Inc. Air Transportation 721
8379 Hiroshima Bank, Ltd. Banks 252 9204 Skymark Airlines Inc. Air Transportation 30
8385 The Iyo Bank, Ltd. Banks 323 9364 Kamigumi Co., Ltd. Warehousing & Harbor Trans 234
8410 Seven Bank, Ltd. Banks 416 9375 Kintetsu World Express, Inc. Warehousing & Harbor Trans 133
8411 Mizuho Financial Group, Inc. Banks 4,961 9404 Nippon Television Holdings, Inc. Information & Communication 479
8418 Yamaguchi Financial Group, Inc. Banks 241 9432 Nippon Telegraph and Telephone Cor Information & Communication 6,629
8424 Fuyo General Lease Co., Ltd. Other Financing Business 123 9433 KDDI Corporation Information & Communication 4,772
8425 IBJ Leasing Company, Limited Other Financing Business 115 9435 Hikari Tsushin, Inc. Information & Communication 362
8439 Century Tokyo Leasing Corporation Other Financing Business 334 9437 NTT DoCoMo, Inc. Information & Communication 6,757
8508 J Trust Co., Ltd. Other Financing Business 186 9449 GMO Internet Inc. Information & Communication 137
8524 North Pacific Bank, Ltd. Banks 165 9513 Electric Power Development Co., Ltd. Electric Power & Gas 493
8544 The Keiyo Bank, Ltd. Banks 143 9531 Tokyo Gas Co., Ltd. Electric Power & Gas 1,289
8566 Ricoh Leasing Company,Ltd. Other Financing Business 87 9532 Osaka Gas Co., Ltd. Electric Power & Gas 835
8570 AEON Financial Service Co., Ltd. Other Financing Business 588 9602 Toho Co. Ltd. Information & Communication 393
8591 Orix Corporation Other Financing Business 2,173 9603 H.I.S.Co., Ltd. Services 179
8593 Mitsubishi UFJ Lease & Finance Co. LOther Financing Business 493 9613 NTT Data Corp. Information & Communication 896
8600 Tomony Holdings, Inc. Banks 55 9627 Ain Pharmaciez Inc. Retail Trade 68
8604 Nomura Holdings, Inc. Securities & Commodity Futu 2,760 9697 Capcom Co., Ltd. Information & Communication 123
8697 Japan Exchange Group, Inc. Other Financing Business 614 9719 SCSK Corporation Information & Communication 255
8729 Sony Financial Holdings Inc. Insurance 777 9735 Secom Co., Ltd. Services 1,381
8750 The Dai-Ichi Life Insurance Company, Insurance 1,364 9766 Konami Corporation Information & Communication 345
8766 Tokio Marine Holdings, Inc. Insurance 2,420 9783 Benesse Holdings, Inc. Services 379
8795 T&D Holdings, Inc. Insurance 784 9787 AEON Delight Co., Ltd. Services 105
8801 Mitsui Fudosan Co., Ltd. Real Estate 2,829 9831 Yamada Denki Co., Ltd. Retail Trade 266
8802 Mitsubishi Estate Company, Limited Real Estate 3,849 9843 Nitori Holdings Co., Ltd. Retail Trade 508
8830 Sumitomo Realty & Development Co., Real Estate 2,216 9936 Ohsho Food Service Corp. Retail Trade 76
8840 Daikyo Incorporated Real Estate 124 9948 Arcs Company, Limited Retail Trade 101
8870 Sumitomo Real Estate Sales Co., Ltd. Real Estate 176 9956 Valor Co., Ltd. Retail Trade 70
8876 Relo Holdings, Inc. Services 70 9962 Misumi Group Inc. Wholesale Trade 255
8897 Takara Leben Co., Ltd. Real Estate 52 9983 Fast Retailing Co., Ltd. Retail Trade 3,447
8905 AEON Mall Co., Ltd. Real Estate 651 9984 SoftBank Corp. Information & Communication 9,257
8933 Ntt Urban Development Corporation Real Estate 404 9989 Sundrug Co., Ltd. Retail Trade 320
Source: Japan Exchange Group, TSE, Nikkei
Goldman Sachs Global Investment Research 9November 7, 2013 Japan
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