# RIAN Results for Major Japan Rules

# Overview

In order for Room-In-A-Name (RIAN) to work for the Major Japan rules, an adapted version of the rule result expression is used to calculate the headroom before reaching the 5% initial threshold for a given issuer for a given issuer. The adapted version results in a more conservative figure for Room Above (Eq. Shares or Votes), which should be taken into consideration when reviewing RIAN results.

Major: Japan - Top - SRS has the following result expression:

(GroupBy(If(DelegatorsRequiredToAggregate, EntityIdsIncludingDelegated, EntityId)).Having(InList('NotJPAggExempt', CompanyType) or ((Sum(EquivalentShares) /(First().TotalSharesOutstandingIncludingTreasuryShares +GetRuleValue('MajorJP-Denominator', $Key))) * 100) > 0.1).Sum(EquivalentShares) /(First().TotalSharesOutstandingIncludingTreasuryShares +GetRuleValue('MajorJP-Denominator', $Key))) *100

The baseline figure for calculating RIAN uses this standard result expression. However, the headroom in RIAN is calculated using an adapted version of this:

GroupBy(If(DelegatorsRequiredToAggregate, EntityIdsIncludingDelegated,EntityId)).Having(InList('NotJPAggExempt', CompanyType) or Sum(EquivalentShares) /(First().TotalSharesOutstandingIncludingTreasuryShares) * 100 >0.1).Sum(EquivalentShares) / (First().TotalSharesOutstandingIncludingTreasuryShares) *100

Notice the `GetRuleValue('MajorJP-Denominator', $Key)` is removed from the expression.

# Example

To illustrate the effect this has on the RIAN result, let’s look at a simplified example. If the rule result expression (in %) is:

100 * Sum(EquivalentShares) / (TotalSharesOutstanding +GetRuleValue('MajorJP-Denominator', $Key))

Where:

- Sum(EquivalentShares) = 20
- TotalSharesOutstanding = 1000
- GetRuleValue('MajorJP-Denominator', $Key) = 10
- Threshold = 5%

The regular rule result expression will yield the below result:

100 * 20 / (1000 + 10) = 1.98%

Where the percentage headroom to the threshold is, therefore, 3.02%.

Let's define the RIAN result expression to be:

100 * Sum(EquivalentShares) / (TotalSharesOutstanding)

Take note that the *GetRuleValue('MajorJP-Denominator', $Key)* portion is removed.

The calculation to get the number of equivalent shares before the threshold is reached (Room Above (Eq. Shares or Votes)) using the RIAN result expression would be:

Room Above (Eq. Shares or Votes) =PercentageHeadroom * denominator from RIAN result expression / 100 =3.02 * 1000 / 100 = 30.2

Comparing that to the amount of equivalent shares using the regular expression:

Room Above (Eq. Shares or Votes) =PercentageHeadroom * denominator from regular result expression / 100 =3.02 * 1010 / 100 = 30.5

Therefore the Room Above (Eq. Shares or Votes) figure stated by RIAN using this adapted result expression is more conservative and should be taken into consideration when reviewing results.