PORTFOLIO STRATEGY RESEARCH | April 18, 2019The following is a redacted version of the original report. See inside for details.20YEARS ONWOMENOMICS5.0Progress, areas for improvement,potential 15% GDP boostWhats changed, what hasnt; potential 15% GDP boostSince our initial Womenomics report in 1999, Japan now enjoys record female labor participation (71%) that surpasses the US and Europe, generous parental leave benets, improved gender transparency, and labor reforms. Areas for improvement include: a dearth of female leaders, gender pay gaps, inexible labor contracts, tax disincentives, insufcient caregiving capacity, and unconscious biases. However, the reward for persistence is potentially sizeable. Specically, we estimate that closing the gender employment gap could lift Japans GDP by 10%, and in a blue-sky scenario where the ratio of female vs. male working hours rises to the OECD average, the GDP boost could expand further to 15%.No time to waste: RecommendationsSuggested government policies include: more exible labor contracts, gender pay gap disclosures, tax reforms, parliamentary gender quotas, promotion of female entrepreneurship, and looser immigration rules. For corporations: proactive career management, more exible work environments, performance-based evaluations, gender target-setting, and male diversity champions. Society should dispel Womenomics myths, avoid gender role stereotypes in the media, and promote more women in STEM. Fortunately, tailwinds such as ESG investing and shifting millennial male attitudes should further advance Japans diversity agenda.Kathy Matsui+81 3 6437-9950kathy.matsuigs.com Goldman Sachs Japan Co., Ltd.Hiromi Suzuki+81 3 6437-9955hiromi.suzukigs.com Goldman Sachs Japan Co., Ltd.Kazunori Tatebe+81 3 6437-9898kazunori.tatebegs.com Goldman Sachs Japan Co., Ltd.18 April 2019 | 8:18AM JSTJapan Portfolio StrategyWomenomics 5.0: 20 Years On (Redacted)Whats changed, what hasnt; potential 15% GDP boostSince our initial Womenomics report in 1999, Japan now enjoys record female laborKathy Matsui+81(3)6437-9950 | kathy.matsuigs.comparticipation (71%) that surpasses the US and Europe, generous parental leaveGoldman Sachs Japan Co., Ltd.benets, improved gender transparency, and labor reforms. Areas for improvementHiromi Suzuki+81(3)6437-9955 |include: a dearth of female leaders, gender pay gaps, inexible labor contracts, taxhiromi.suzukigs.comGoldman Sachs Japan Co., Ltd.disincentives, insufcient caregiving capacity, and unconscious biases. However, theKazunori Tatebereward for persistence is potentially sizeable. Specically, we estimate that closing+81(3)6437-9898 |kazunori.tatebegs.comthe gender employment gap could lift Japans GDP by 10%, and in a “blue-skyGoldman Sachs Japan Co., Ltd.scenario” where the ratio of female vs. male working hours rises to the OECD average, the GDP boost could expand further to 15%.No time to waste: RecommendationsSuggested government policies include: more exible labor contracts, gender pay gap disclosures, tax reforms, parliamentary gender quotas, promotion of female entrepreneurship, and looser immigration rules. For corporations: proactive career management, more exible work environments, performance-based evaluations, gender target-setting, and male diversity champions. Society should dispel Womenomics myths, avoid gender role stereotypes in the media, and promote more women in STEM. Fortunately, tailwinds such as ESG investing and shifting millennial male attitudes should further advance Japans diversity agenda.www.gs.com/research/hedge.html. Analysts employed by nonUS afliates are not registered/qualied as research analysts with FINRA in the U.S.Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to www.gs.com/research/hedge.html.The Goldman Sachs Group, Inc.The Goldman Sachs Group, Inc.Goldman SachsJapan Portfolio StrategyTable of ContentsExecutive summary: Womenomics is working, but still more to do3Why Womenomics? The economic and business case4Progress since 199912Areas for improvement20No time to waste: Recommendations for government, corporations, society31Tailwinds: ESG and shifting millennial attitudes42Disclosure Appendix47Note: The following is a redacted version of “Womenomics 5.0: 20 Years On” originally published April 16, 2019 55pgs. All company references in this note are for illustrative purposes only and should not be interpreted as investment recommendations.18 April 20197Executive summary: Womenomics is working, but still more to doTwo decades have passed since we published our rst report on Wo