Buy 2,158 2,107

2014 1 29 1,401

+50.4% Anchor themes

Catalyst

- NSC tetsuya.wadaki@nomura.com +81 3 6703 1184

8060.T 8060 JP

EQUITY:

Buy 1 28 13.122913.12Buy

LBPLBP 2013+4314-8%

16 8000360 100

13/12 14/12E 15/12E 16/12E

()

() 657,215 669,000 666,800 673,200 676,100 673,700 N/A 679,000

() 17,012 20,500 19,400 18,800 22,000 20,900 N/A 21,300

EPS 76.7 97.7 90.4 92.5 104.2 99.1 N/A 100.6

PER [] 18.3 14.3 15.5 N/A 13.4 14.1 N/A 13.9

EV/EBITDA [] 2.6 1.8 2.3 N/A 1.5 2.0 N/A 1.8

PBR [] 0.7 0.7 0.7 N/A 0.7 0.7 N/A 0.7

[%] 1.7 2.1 1.9 N/A 2.2 2.1 N/A 2.1

Global Markets Research 2014 1 29

Appendix A-1

Nomura | 2014 1 29

2

Buy

ThomsonReuters, (%) 1M 3M 12M -3.5 6.5 16.8 Russell/Nomura Large Cap -0.5 1.1 -19.3

() 1,401 () 211.752 () 1,20052 () 1,528 () 151.1 ThomsonReuters,

() 13/12 14/12E 15/12E 16/12E EPS 76.7 90.4 99.1 100.6BPS/1 NAV 1,980.2 1,936.8 2,009.0 2,079.7DPS 24.0 27.0 30.0 30.0ROE (%) 4.0 4.7 5.0 4.9 () 13/12 14/12E 15/12E 16/12E 657,215 666,800 673,700 679,000 17,012 19,400 20,900 21,300EBITDA 34,459 36,200 37,800 38,300 382 382 382 382 75 75 75 75 18,210 20,500 21,900 22,300 17,054 20,400 21,800 22,200 38 0 0 0 10,167 12,400 13,600 13,800() 0 0 0 0 () 13/12 14/12E 15/12E 16/12E 324,939 334,900 344,600 353,000 132,696 134,600 136,000 137,100 28,233 28,600 28,900 29,100 142,137 143,400 145,500 148,500 467,076 478,300 490,100 501,500 108,498 110,100 111,200 112,100 973 1,000 1,000 1,000 210,000 212,400 214,300 216,000 257,075 265,900 275,800 285,500 256,794 265,701 275,601 285,301 () 13/12 14/12E 15/12E 16/12E 28,780 29,491 31,126 31,226 10,167 12,400 13,600 13,800 17,447 16,800 16,900 17,000 -119 -669 -600 -400 -25,757 -17,959 -19,000 -20,000 -14,400 -18,000 -19,000 -20,000 3,023 11,532 12,126 11,226 -9,105 -3,714 -4,126 -4,126 -472 27 0 0 -3,458 -3,704 -4,116 -4,116 -6,077 7,818 8,000 7,100

Nomura | 2014 1 29

3

1 28 13.122913.12 0.3% 6,572 1.2 170

BS LBP

14.12 IT 14.12 6,732 2.4 188 10.5IT

14 2013+4314-8%

IJP IJP(6724)-7-514 IJP+1

2016 8000 360IT

Nomura | 2014 1 29

4

1:

:

2013 6,572 170 102 174 144 1 1312014 6,668 194 116 168 180 7 98 1.06 932015 6,737 209 125 169 190 6 98 1.12 882016 6,790 213 128 170 200 4 94 1.18 802017 6,846 217 130 170 210 4 86 1.24 692018 6,905 223 134 170 210 5 89 1.31 682019 6,968 229 137 170 210 6 91 1.39 66

6,968 229 137 170 210 6 1,633 1.39 1,178

1,642 1,422 0 0 3,064( 2,233

Nomura | 2014 1 29

5

2: (1)

:

() 10/12 11/12 12/12 13/12 14/12 15/12 16/12 13/12 14/12

E E E Co's E Co's Eas of 13/10 as of 14/1

674,159 632,418 681,234 657,215 666,800 673,700 679,000 659,300 673,200 -1.8 -6.2 7.7 -0.3 1.5 1.0 0.8 0.0 2.4

342,458 325,136 343,999 327,263 328,900 330,500 332,200 327,800 332,500 -5.1 5.8 -1.1 2.0 0.5 0.5 -0.9 1.6

IT 133,250 124,472 131,303 142,299 143,000 143,700 144,400 142,100 146,200 -6.6 5.5 8.6 3.0 0.5 0.5 8.5 2.7

213,836 179,503 200,617 191,729 195,600 197,600 197,600 190,300 192,300 -16.1 11.8 -0.1 2.0 1.0 0.0 -0.9 0.3

13,354 29,610 30,689 26,106 27,400 30,100 33,100 26,700 30,300 121.7 3.6 -15.0 15.0 9.9 10.0 -13.0 16.1

-28,739 -26,304 -25,376 -30,250 -28,100 -28,200 -28,300 -27,600 -28,100 7,735 8,441 16,802 17,012 19,400 20,900 21,300 16,900 18,800 1.1 1.3 2.5 2.6 2.9 3.1 3.1 2.6 2.8 22.8 9.1 99.1 1.2 14.0 7.7 1.9 0.6 10.5

2,281 3,488 6,299 5,535 6,600 7,400 7,600 6,300 6,400 0.7 1.1 1.8 1.7 2.0 2.2 2.3 1.9 1.9 52.9 80.6 -12.1 19.2 12.1 2.7 0.0 15.6

IT -3,697 -3,072 195 387 2,000 2,300 2,400 900 1,800 -0.5 -2.5 0.1 0.3 1.4 1.6 1.7 0.6 1.2 - - 98.5 416.8 15.0 4.3 - -

9,834 8,387 10,917 12,491 11,800 12,000 12,000 10,800 11,100 4.6 4.7 5.4 6.5 6.0 6.1 6.1 5.7 5.8 -14.7 30.2 14.4 -5.5 1.7 0.0 -1.1 -11.1

-245 -245 -1,201 -1,765 -1,000 -800 -700 -1,500 -800 -0.0 -0.8 -3.9 -6.8 -3.6 -2.7 -2.1 -5.6 -2.6 - - - - - - - -

-437 -116 591 364 0 0 0 400 300 1,744 2,227 1,306 1,197 1,100 1,000 1,000 1,100 1,100 9,480 10,668 18,108 18,210 20,500 21,900 22,300 18,000 19,900 1.4 1.7 2.7 2.8 3.1 3.3 3.3 2.7 3.0 15.3 12.5 69.7 0.6 12.6 6.8 1.8 -0.6 9.3

-897 304 -580 -1,156 -100 -100 -100 -200 -100 8,584 10,972 17,528 17,054 20,400 21,800 22,200 17,800 19,800 4,770 4,204 6,925 6,847 8,000 8,200 8,400 89 3 25 38 0 0 0

3,724 6,763 10,578 10,167 12,400 13,600 13,800 10,600 12,000 0.6 1.1 1.6 1.5 1.9 2.0 2.0 1.6 1.8 - 81.6 56.4 -3.9 22.0 9.7 1.5 0.2 18.0

EPS( 26.7 49.3 77.5 76.7 90.4 99.1 100.6 79.7 92.5CFPS( 127.3 161.1 196.0 201.3 212.9 222.3 224.5DPS( 20.0 20.0 24.0 24.0 27.0 30.0 30.0 24.0 BPS 1,798.2 1,827.3 1,907.5 1,980.2 1,936.8 2,009.0 2,079.7 17,996 16,184 21,961 14,400 18,000 19,000 20,000 14,600 17,100 13,739 15,331 16,317 17,447 16,800 16,900 17,000 16,700 16,800

Nomura | 2014 1 29

6

3: (2)

:

() 10/12 11/12 12/12 13/12 14/12 15/12 16/12

E E E

301,693 301,878 316,608 324,939 334,900 344,600 353,000 15,975 19,303 23,046 20,082 27,800 35,800 42,900 118,886 123,027 127,648 132,696 134,600 136,000 137,100 94,599 83,219 85,029 82,200 82,200 82,200 82,200 20,530 26,332 28,826 28,233 28,600 28,900 29,100 4,930 4,410 4,708 5,088 5,100 5,100 5,100 46,773 45,587 47,351 56,640 56,600 56,600 56,600

86,127 91,928 99,564 99,684 100,900 103,000 106,000 23,736 20,435 15,986 12,894 12,900 12,900 12,900 37,035 33,523 30,415 29,559 29,600 29,600 29,600 448,592 447,765 462,574 467,076 478,300 490,100 501,500 157,247 151,090 163,397 164,914 166,500 167,600 168,500 102,849 100,046 104,162 108,498 110,100 111,200 112,100 0 1,616 0 0 0 0 0 0 1,115 0 0 0 0 0 54,398 48,313 59,235 56,416 56,400 56,400 56,400

44,498 45,367 45,088 45,086 45,900 46,700 47,500 0 624 0 73 100 100 100 2,021 639 569 579 600 600 600 38,222 39,083 39,746 39,166 39,900 40,700 41,500 4,255 5,021 4,773 5,268 5,300 5,300 5,300

246,845 250,866 253,855 255,557 264,700 274,600 284,300 -165 -195 6 1,236 1,000 1,000 1,000 166 636 225 200 200 200 200 246,846 251,307 254,088 257,075 265,900 275,800 285,500 448,592 447,765 462,574 467,076 478,300 490,100 501,500

Nomura | 2014 1 29

7

4: (3)

:

() 10/12 11/12 12/12 13/12 14/12 15/12 16/12

E E E

35,186 8,715 33,767 28,780 29,491 31,126 31,226 3,724 6,763 10,578 10,167 12,400 13,600 13,800 13,739 15,331 16,317 17,447 16,800 16,900 17,000 6,901 4,983 -4,689 -4,730 -1,904 -1,400 -1,100 3,926 -2,164 -2,301 432 -367 -300 -200 -3,593 -9,781 4,115 4,191 1,602 1,100 900 10,489 -6,417 9,747 1,273 960 1,226 826

-13,011 -12,107 -16,066 -25,757 -17,959 -19,000 -20,000 -16,725 -15,601 -18,520 -17,203 -18,000 -19,000 -20,000 645 1,600 665 326 0 0 0 288 298 205 1,110 41 0 0 2,781 1,596 1,584 -9,990 0 0 0

-8,171 -3,811 -11,813 -9,105 -3,714 -4,126 -4,126 -5,002 -1 -5,104 -5,005 0 0 0 -2,791 -2,745 -2,746 -3,458 -3,704 -4,116 -4,116 -64 -64 -8 -9 -10 -10 -10 -314 -1,001 -3,955 -633 0 0 0

13,999 -7,202 5,887 -6,077 7,818 8,000 7,100 95,575 109,575 102,372 108,259 102,182 110,000 118,000 109,575 102,372 108,259 102,182 110,000 118,000 125,100

Nomura | 2014 1 29

8

Appendix A-1 12(3) NSI NIP

1

Canon Marketing Japan 8060 JP 1,401 29-1-2014 Buy N/A A6

A6 3

(8060 JP) 1,401 (29-1-2014) Rating and target price chart (three year history)

Buy (Sector rating: N/A)

Date Rating Target price Closing price 24-Oct-13 2,158 1,384 24-Jul-13 2,183 1,310 11-Mar-13 2,194 1,320 29-Jan-13 2,104 1,199 24-Oct-12 2,062 1,218 25-Jul-12 2,128 1,036 27-Jan-12 1,750 939 25-Oct-11 1,700 928 22-Jul-11 1,697 1,007 08-Jul-11 1,676 943 24-Apr-11 1,577 876 28-Jan-11 1,620 1,191

For explanation of ratings refer to the stock rating keys located after chart(s)

5.6 02019 DCF 2,23313 12 BPS1,980 1:1 2,107 IT IT 1% 12http://www.nomuraholdings.com/jp/report/

Nomura | 2014 1 29

9

www.nomuranow.com/researchIQMarkitHubhttp://go.nomuranow.com/research/globalresearchportal/pages/disclosures/disclosures.aspx(1-877-865-5752) grpsupport@nomura.com FINRA/NYSENSIFINRA 2711 NYSE 472 NGFPNDPI plcNIplcNGFPNDPI NIplc plcIndustry SpecialistMarketing Analyst plc 42% Buy Buy43%47% Hold Hold 55%11% Sell( Reduce) Sell 26%(201312 31 ) 2013 10 21 ROE(-)// 1 Buy = 12 2 Neutral = 12 3 Reduce = 12 (Suspended) Not rated http://go.nomuranow.com/research/globalresearchportal MSCI()Russell/Nomura Large Cap (Bullish) = 12 (Neutral) = 12 (Bearish) = 12 Not rated N/A S&P500 STOXX600MSCI() 2013 10 20 (-)/ 12 1 Buy = 12 15% 2 Neutral = 12 5%15% 3 Reduce = 12 5% (Suspended) NR (Bullish) = (Neutral) =

Nomura | 2014 1 29

10

(Bearish) = 1NSC plc (NIplc) (NSI) (NIHK)() (NFIK) ((KOFIA) KOFIA http://dis.kofia.or.kr ) (NSL) ( 197201440E ) (NAL) (ABN 48 003 032 513) ( 246412(ASIC) P.T. (PTNI) Sdn. Bhd. (NSM) NIHK (NITB) () (NFASL) (: Ceejay House, Level 11, Plot F, Shivsagar Estate, Dr. Annie Besant Road, Worli, Mumbai- 400 018, India: +91 22 4037 4037: +91 22 4037 4111; SEBI BSE INB011299030NSE INB231299034 INF231299034 INE 231299034, MCX: INE261299034) NIplc (NIplc, Madrid)CNS (CNS)NSLCNS (i)(ii)(iii) () MSCIMSCI Inc.(MSCI)MSCIMSCIMSCIMSCIMSCIMSCIMSCI /http://go.nomuranow.com/equities/tradingideas/retina/Retina

Nomura | 2014 1 29

11

19331933 NIplcNIplcNIplcNIHK ASIC NAL NSM NSLNSL 289 NSL 1933 S NSINSI 1934 15a-6 NIplcUAEUAEUAEUAE (i)(ii) 1.365%*1 1.3%202,730*2 2,600 *1*2 2014 4 1 8%*1 1.404%*2 2,808 REIT ETF ETN 1.365*1 1.3%20 2,730*2 2,600 REIT ETF 0.9975%*3 0.95% 75 7,455*4 7,100 1.365*1 1.3%20 2,730*2 2,600 30 30 3.3 1.05*5 1%4,200*6 4,200*6 4,000 1 10 20.79685 5 3 20.79685

Nomura | 2014 1 29

12

5.25*7 5% 2.0 5.25*7 5% CDSCDSCDS CDS 10,500*8 10,000 *1*2*3*4*5*6*7*8 2014 4 1 8%*1 1.404%*2 2,808*3 1.026%*47,668*5 1.08%*6 4,320*7 5.4%*8 10,800 () 142 / http://go.nomuranow.com/research/globalresearchportal/pages/disclosures/disclosures.aspx Copyright 2014 Nomura Securities Co., Ltd.. All rights reserved.