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Investor Presentaiton

Green and digital will drive structural reform in Japan NOMURA Impact of carbon neutrality on global employment (IMF estimate) (Versus baseline, %) 2.5 2.0 1.5 1.0 0.5 0.0 -0.5 -1.0 -1.5 -2.0 -2.5 -3.0 Other Services Renewable Energy All industries Fossil fuels Manufacturing Construction We saw many seeds of structural changes during the pandemic; new work styles that we were forced to adopt accelerated the speed of digitalization. The birth of the Biden administration in the US also accelerated the trend towards carbon neutrality. The shift to carbon neutrality is sure to be a large scale structural shift that produces clear winners and losers in various industries. The keys for revitalizing Japan's economy will be efforts by enterprises to be the winners in these rapid structural changes and policy efforts by the government to create as many winners as possible in the domestic economy. 2020 2024 2028 2032 2036 2040 2044 2048 2052 (CY) Note: IMF estimates. Envisages 80% decline in greenhouse gas emissions by 2050 driven by national and regional policies aimed at mitigating climate change. Shows outcome of (1) phased increases in carbon taxation, (2) green stimulus including infrastructure investment and renewables subsidies, and (3) compensatory transfers to households. Also assumes avoidance of economic losses due to climate change. Source: Nomura, based on IMF data 14
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