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Tokyo Investor Day

INTERGENERATIONAL WEALTH TRANSFER DRIVES ENHANCED BANK CHANNEL OPPORTUNITY • Inheritance tax system revisions effective January 1, 2015 subjects more people to inheritance tax payments and increased rates • Gift tax rates lowered to encourage wealth transfer during lifetime • We believe Japanese consumers place high confidence in banks for these estate planning elements • Life insurance products offer attractive inheritance solutions Percentage of People Subject to Inheritance Tax Payment Gift Tax Filings (3) (in thousands) 500 489 470 After the tax 439 As of 2014(1) law revision (2) (January, 2015) 391 400 379 345 National 4.4% Average nearly 6% 289 300 273 Tokyo 7.5% nearly 20% 200 2008 2009 2010 2011 2012 2013 2014 2015 National Tax Agency "State of inheritance tax return for 2014" and Tokyo Regional Taxation Bureau "State of inheritance tax return for 2014." 2) Survey by Legacy, tax accounting firm, published in 2013. National Tax Agency, the Taxation System for Settlement at the Time of Inheritance is excluded. Prudential Tokyo Investor Day 9.15.2016 7
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