Criteria for Delisting

Summary of Criteria for Delisting

Update : Dec. 13, 2011

1st Section and 2nd section Domestic stocks

			Criteria for Delisting of Stock for the1st Section and the 2nd Section
Items	Number of Shareholders(Note 1)		Less than 400 (1 year grace period applies)
	Tradable Shares	Number of tradable shares (Note 2)	Less than 2,000 units(Note 3) (1 year grace period applies)
		Market Capitalization of tradable shares(Note4)	Less than ¥500 million (1 year grace period applies)(¥300 million under temporary measure till the end of Dec.2012)
		Ratio of tradable shares to listed shares(Note 5)	Less than 5% (excluding cases where predetermined documents are submitted) (No grace period)
	Market Capitalization (Note 6)		In the event that it is less than ¥1 billion (¥600 million under temporary measure till the end of Dec. 2012), it does not increase to ¥1 billion (¥600 million under temporary measure till the end of Dec. 2012) or above within 3 months (or in 9 months if predetermined documents are submitted) or in the event that it is less than 2 times the listed number of shares, it does not increase to the said numerical value within 3 months
	Liabilities		Liabilities exceed assets and this state remains unchanged for 1 year (as a general rule, based on consolidated balance sheets)
	False Statements or Unfair Representations		In the case that a listed company has made "false statements" in Annual or Semi-annual Securities Reports, etc., and, in addition, TSE concluded that the "false statements" would have a material impact. In the case that a certified public accountant states an "adverse opinion" or includes "disclaimer of opinion" in the audit report, etc., and, in addition, TSE concluded that the opinions would have a material impact.
	Trading Volume		(1) For the last 1 year: Average monthly trading volume: less than 10 units, or (2) No trades during the last 3 months
	Others		Suspension of bank transactions, bankruptcy/rehabilitation/reorganization proceedings or liquidation, suspension of business activities, inappropriate merger, etc., impairment of soundness of transactions with a controlling shareholder, delay in submission of securities reports/quarterly reports, violation, etc. of the listing agreement, failure to delegate shareholder services to an agent, restriction on transfer of shares, becoming a wholly-owned subsidiary, failure to be subject to handling by the designated book-entry transfer organization, unreasonable restrictions on shareholders' rights, acquisition of all shares, involvement of anti-social influences, and others (public interest and investor protection)

Note:

1. "The number of shareholders" refers to the number of persons who own at least one unit of shares, etc. (For more information, please refer to the item under "criteria for the number of shareholders (share distribution).")
   Criteria for the number of shareholders (share distribution)
2. "Tradable shares" refers to listed stocks, etc. excluding shares owned by persons holding at least 10% of the number of listed shares as well as other shares specified by the Enforcement Regulations as having little liquidity. (For more information, please refer to the item under "criteria for the number of tradable shares, etc. (share distribution).)
   Criteria for the number of tradable shares, etc. (share distribution)
3. "A unit" refers to the number of shares for a basic lot (Tangen) in cases where the basic lot system is adopted, or one share if no such system is adopted.
4. The "market capitalization of tradable shares" refers to the amount obtained by multiplying the closing price in the TSE auction market on the last day of the listed company's fiscal year by the number of tradable shares as of that day.
5. "Ratio of tradable shares" refers to a percentage of the number of tradable shares as of the last day of the listed company's fiscal year to the total number of listed shares, etc.
6. "Listed Market Capitalization" is the average monthly market capitalization (the average amount obtained by multiplying the closing prices of each day in auction trading at TSE by the number of shares listed on the market for that day) or the market capitalization at the end of the month (the amount obtained by multiplying the closing prices at the end of the month in auction trading at TSE (if there is no closing price, the most recent closing price will be applied) by the number of listed shares at the end of the month).