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Investor Presentaiton

NOMURA To reboot Japan's potential growth rate Decomposition of Japan's potential growth rate (BOJ estimate) (y-o-y, %, contribution) 6.0 5.0 4.0 3.0 2.0 1.0 0.0 Hours worked Capital stock Total factor productivity Number of employed Potential growth rate In order to escape the trap of 'cheap Japan', we need to raise per capita value added to receive proper compensation. By raising per capita value added of all employees and raising productivity, we can also improve growth potential of the overall Japanese economy. A policy-based effort to promote recurrent education and reskilling is important. Private enterprises and their employees should also recognize its importance and intensify efforts for job training. -1.0 -2.0 83 85 87 89 91 93 95 97 99 01 03 05 07 09 11 13 15 17 19 21 (CY) Source: Nomura, based on BOJ data 13
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