JPX Market Innovation & Research: Publication Of Constituents and Methodology For JPX-Nikkei Index Human Capital 100

As announced on February 5 ¹ JPX Market Innovation & Research, Inc. (JPXI) and Nikkei Inc. (Nikkei) have developed a new stock price index that focuses on human capital and will start the calculation of the JPX-Nikkei Index Human Capital 100 from July 22. We are pleased to announce that we have finalized the constituents and methodology, as you will see below.

Commencement of the Calculation and Publication of the New Index "JPX-Nikkei Index Human Capital 100"

Joint Development of New Index Focusing on Human Capital

Outline of the JPX-Nikkei Index Human Capital 100

Name

JPX-Nikkei Index Human Capital 100

Number of Constituent Stocks

100 stocks

Overview of Constituent Stocks

Constituent stocks are selected from the JPX-Nikkei Index 400 constituents factoring in their extent of engagement with human-capital-conscious management

Constituent Selection and Reshuffle Method

[Selection Criteria]
Stocks are selected according to the following procedures and criteria.

Calculation of the Comprehensive Human Capital Score
Extra points are added to the ESG Performance Score Core - Dimension Human Capital Score provided by ESG Book ² if each of the following three conditions is met:

• The ratio of female managers is 30% or more.
• The growth rate of the average annual salary of employees is in the top 10% of the JPX-Nikkei Index 400 constituent stocks.
• The growth rate of operating profit per employee is in the top 10% of the JPX-Nikkei Index 400 constituent stocks.

2 By integrating sustainability data with an advanced disclosure platform, ESG Book enables financial institutions and corporates to share and interpret mission-critical information. Trusted by global banks, its cloud-based platform supports use cases including regulatory reporting, risk management, supply chain resilience, and capacity building – while reducing time, cost, and effort.

Selection of Constituent Stocks
The top 100 stocks with the highest Comprehensive Human Capital Scores calculated in (1) are selected as constituent stocks. However, in the case of periodic reviews, the JPX-Nikkei Index Human Capital 100 constituent stocks within the top 120 in the Comprehensive Human Capital Score ranking as of the base date for the periodic review (the last business day of June each year) are selected. If the number of stocks falls short of 100, non-constituent stocks are selected in the ascending order of the Comprehensive Human Capital Score ranking until the number reaches 100.

[Periodic Review]
The periodic review is conducted on the last business day of August each year, with the base date of the selection being the last business day of June each year.

Calculation Method

Free-float adjusted market capitalization weighted (10% cap, partially adjusted by Ranking Factor based on the Comprehensive Human Capital Score ranking)

[Calculation criteria for Ranking Factor]

Comprehensive Human Capital Score ranking	Ranking Factor
1st to 25th	2.0
26th to 50th	1.5
51st to 100th	1.0
101st to 120th	0.5

Scheduled Calculation Commencement Date

July 22, 2025 (Tuesday)
Real-time distribution from the Tokyo Stock Exchange's Market Information System (every 15 seconds)

Calculation Base Date and Base Value

August 31, 2017 (Thursday) / 10,000 points

JPX-Nikkei Index Human Capital 100 Guidebook

Index Constituents

The constituents as of calculation start date will be as indicated on Appendix 1. Please note that the next constituents review will be conducted in August 2025.

Appendix 1. JPX-Nikkei Index Human Capital 100 Constituents

Reference Information

For past values and graphs, etc., please refer to Appendix 2.

Appendix 2. Reference Information

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