We deeply apologize to the people of Fukushima and broader society for the tremendous amount of inconvenience and anxiety caused by the accident at Fukushima Daiichi and Daini Nuclear Power Stations (hereinafter referred to as "the accident").
With regard to compensation for depreciable assets and inventory assets owned by individual business owners (including agricultural, forestry and fishery workers; same hereinafter) and small/medium-sized business entities^*1 announced in the "Compensation According to the Redefined Evacuation Zone" on July 24, 2012, compensation will be provided as follows.

1. Compensation for depreciable assets
(1) Damage eligible for compensation
For depreciable assets (refer to "Attachment 1") owned by individual business owners or small/medium-sized entities in the evacuation zone^*2 at the time of the accident and that have not been taken out of the zone, losses of assets due to the passage of time or the inability to manage them because of the evacuation following the accident will be compensated.

(2) Eligible individuals
Individual business owners or small/medium-sized entities who owned depreciable assets eligible for compensation in the evacuation zone at the time of the accident.

(3) Amount of compensation to be paid
a. Depreciable assets whose book value can be confirmed

Market value is calculated by multiplying the book value of an eligible asset by the depreciable asset coefficient (Refer to "Attachment 2"). Based on a method selected from (i) and (ii) below by the applicant, the reduction in value of the asset according to the length of evacuation period is calculated per account and will be compensated. As for buildings that have long useful lives compared to other depreciable assets and are generally held for a long period, an adjustment will be made based on the price-level coefficient (Refer to "Attachment 3") to consider changes in prices when determining market value. (With regard to compensation for buildings owned by individual business owners, such buildings will be treated as those owned by individuals. Details are provided separately.)

(i) Calculation based on reduction rate of value
Calculated by multiplying market value by reduction rate of value (Refer to "Attachment 4") according to the period from the accident until the evacuation order is lifted.

<Calculation for buildings>
・Book value x Depreciable asset coefficient x Price-level coefficient x Reduction rate of value

<Calculation for depreciable assets other than buildings>
・Book value x Depreciable asset coefficient x Reduction rate of value

(ii) Calculation based on actual depreciation cost
Calculated based on sum of actual depreciation costs incurred during the evacuation period. Specifically, calculated by dividing sum of actual depreciation costs incurred during the period from the accident until the evacuation order is lifted by book value, and multiplying the result by market value.

<Calculation for buildings>

<Calculation for depreciable assets other than buildings>

When calculating the amount of compensation, the evacuation period is deemed to be 72 months for the zone where residents cannot return for a long time. As for the zones with restricted entry and zones in preparation to have the evacuation order lifted, it will be considered as 36 months for the former and 24 months for the latter until the estimated time the evacuation order is determined to be lifted, and is reviewed once determined. In case the actual time the evacuation order is lifted is later than estimated, the period will be reviewed again.
With regard to the zone for which redefining the evacuation zone has not been completed, 24 months will be used until the zoning review is completed and, upon completion of the zoning review, it will be reviewed based on the redefined zone type and estimated time the evacuation order is to be lifted.

b. Depreciable assets owned by individual business owners that are not included in the books of account
As for depreciable assets owned by individual business owners and not included in the books of account^*3, a simplified book value is calculated as the acquisition value of a relevant depreciable asset multiplied by the book value coefficient (Refer to "Attachment 5") and compensation will be paid in accordance with a.

<Calculation for depreciable assets not included in books of account>
Book value x Book value coefficient x Depreciable asset coefficient x Reduction rate of value

c. Low-value assets that were accounted for as expense
Because no book value is available for a depreciable asset that was accounted for as an expense, rather than capitalized, due to its low value, either of the methods below may be selected for compensation.

<Calculation for low-value assets accounted for as expenses>
- Aggregate of book values of machinery and equipment, motor vehicles and transport equipment, and tools, furniture and fixtures x 5%;
or
- 100,000 yen (fixed amount)

d. Fixed value compensation for individual business owners
A private business owner who operated a business in the evacuation zone and owned depreciable assets for business purposes in the zone may select a fixed value compensation of 500,000 yen.
This may not be claimed together with a, b and/or e.

e. Others
Compensation may be claimed for fruit trees and lease assets owned by a private business owner or small/medium-sized business entity, depreciable assets acquired immediately prior to the accident, construction-in-progress for which construction contracts were cancelled due to the accident and others.

(4) Coordination with commercial damage compensation for depreciation cost
Considering that depreciation costs have been paid as part of commercial damage compensation for the compensation period from March 2011 to May 2012 (one year and three months), an amount corresponding to depreciation costs for the relevant period will be deducted from this compensation.
Further, considering that depreciation costs were not included in the commercial damage compensation for the compensation period from June 2012 to February 2015 in the case that the evacuation order is expected to be lifted before February 2015, an amount corresponding to depreciation costs for the period from the estimated time of the evacuation order to be lifted to February 2015 will be added to this compensation.

(5) Others
Because repair cost incurred for a depreciable asset eligible for compensation are considered to the cost to recover the reduction in value of an asset attributable to the accident, indemnification for such cost will be included in the amount of compensation for the reduction in value. However, where actual repair cost exceeds the amount of compensation for the reduction in value for a respective account, such excess will be added to compensation separately to the extent that it does not exceed the market value of the account at the time of the accident.

2. Compensation for inventory assets
(1) Damage eligible for payment
The reduction in value of assets caused by the inability to manage them, etc., due to the evacuation etc., subsequent to the accident will be compensated for the following items among inventory assets (Refer to "Attachment 6") that were owned by individual business owners and small/medium-sized business entities in the evacuation zone at the time of the accident and have not been taken out.
a. Merchandise and products, etc., that are located in the zone where residents cannot return for a long period and thus cannot be taken out
b. Merchandise and products, etc., that were disposed of or are expected with certainty to be disposed of because they cannot be sold or used
c. Merchandise and products, etc., that were sold at prices below book value
d. Others

(2) Eligible individuals
Individual business owners or small/medium-sized entities who owned inventory assets eligible for compensation in the evacuation zone at the time of the accident.

(3) Amount of compensation to be paid
a. Merchandise and products, etc., that are located in the zone where residents cannot return for a long time and thus cannot be taken out
Merchandise and products, etc., that cannot be taken out of the zone where residents cannot return for a long time due to the accident and remain in the zone are considered to have lost 100% of their market values due to the inability to manage them, and will be compensated for at their market values.

b. Merchandise and products, etc., that were disposed of or are expected with certainty to be disposed of because they cannot be sold or used
Where merchandise and products, etc., were disposed of because they could not be sold or used due to the inability to manage them as a result of the evacuation, etc., following the accident, they are considered to have lost 100% of their market values due to the inability to manage them, and will be compensated for at the cost of disposal in addition to their market values.

c. Merchandise and products, etc., that were sold at prices below their book values
Where merchandise and products, etc., for which normal sale or use was not possible due to the inability to manage them as a result of the evacuation, etc., following the accident were sold at prices below their book values, an amount corresponding to loss on sale is considered to represent the reduction in value of the assets and an amount obtained by subtracting income from sale from market value will be compensated.

d. Others
An application may be made for a construction contract that was cancelled as a result of the evacuation due to the accident and reduction in value of real estate held for sale.

3. Deduction for damage due to earthquake and tsunami
As for depreciable assets and inventory assets damaged by the earthquake and tsunami, a fixed rate for damage (determined according to severity of damage) will be deducted from the amount of compensation. As their treatment has not yet been determined, an applicant who owns or leases a building who suffered loss due to the earthquake and tsunami is requested to postpone an application until it is finalized. Treatment is to be informed by mail.

4. Others
Details of compensation for loss or reduction in value of assets (including that of depreciable assets and inventory assets) owned by business entities other than small/medium-sized business entities in the evacuation zone at the time of the accident are to be provided at a later date.

5. Dispatch and acceptance of application forms
For those who have submitted an application form for indemnification and come to an agreement, we will dispatch application forms progressively and start acceptance, from December 27, 2012. For those who are making an application for the first time or have changed or will change their postal address, we would appreciate it if they would contact the Fukushima Nuclear Compensation Office (Call Center) listed at the end of this announcement.

*1 Small/medium-sized business entities
Business entities whose capital or investment is 100 million yen or less, excluding business entities related to other business entities or mutual companies whose capital or investment is 500 million yen or more. Public interest business entities whose yearly income from business operations is 300 million yen or more are excluded.
*2 Evacuation zone
Zone as defined as the "evacuation zone" in "The Second Supplement to the Interim Guidelines for the Scope of Nuclear Damages due to the Accident at Fukushima Daiichi and Daini Power Stations".
*3 Eligible depreciable assets are 300,000 yen or more in acquisition value in the case of taxpayers by blue return and 100,000 yen or more in the case of other taxpayers among the assets acquired prior to December 31, 2010.

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<Contact info for Nuclear Accident Damage Claims>
Fukushima Nuclear Compensation Office (Call Center)
Telephone: 0120-926-404
Time: 9:00 A.M. to 9:00 P.M.
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Attachment 1: Examples of Depreciable Assets Subject to Compensation (PDF 56.1KB)
Attachment 2: Depreciable Asset Coefficient (PDF 62.5KB)
Attachment 3: Price-level Coefficient (PDF 59.9KB)
Attachment 4: Reduction Rate of Depreciable Asset Value (PDF 66.0KB)
Attachment 5: Book Value Coefficient (PDF 58.6KB)
Attachment 6: Examples of Inventory Assets Subject to Compensation (PDF 55.0KB)