Analyst Meeting Analyst Meeting Presentation Material Presentation Material May 31, 2007 Mitsui Trust Financial Group
Agenda Ⅰ . Reorganization within the Group and Strengthening of the Group’s Brand Awareness Ⅱ . Management Strategies Ⅲ . Strategic Business Operations Ⅳ . Strengthening of Balance Sheet Mitsui Trust Financial Group 1
Ⅰ . Reorganization within the Group and Strengthening of the Group’s Brand Awareness Mitsui Trust Financial Group 2
Reorganization within the Group and Strengthening of the Group’s Brand Awareness � Reorganization within the Group （ Chuo Mitsui Asset Management Co., Ltd. & Chuo Mitsui Capital Co., Ltd.) -Convert into direct wholly-owned subsidiaries of Mitsui Trust to develop strategic business operations and to bolster the Group’s internal control system � Unify our Group brand under the “Chuo Mitsui” name to strengthen brand awareness After Reorganization （ Scheduled for October 1, 2007) Current Status Mitsui Trust Financial Group Chuo Mitsui Trust Group Chuo Mitsui Trust Holdings, Inc . Mitsui Trust Holdings, Inc. Asset Trust Banks Trust Banks Management The Chuo Mitsui Trust & Mitsui Asset Trust & Chuo Mitsui Asset Management Co., Chuo Mitsui Asset Trust & Banking The Chuo Mitsui Trust & Banking Banking Co., Ltd. Banking Co., Ltd. Chuo Mitsui Capital Co., Ltd Co., Ltd. Co., Ltd. Ltd Management Chuo Mitsui Asset Management Co., Ltd Asset Chuo Mitsui Capital Co., Ltd Other subsidiaries Other subsidiaries Mitsui Trust Financial Group 3
Ⅱ . Management Strategies ･ Management Direction ･ Summary of Strategic Business Operations ･ Financial Summary ･ Revenues by Business Unit ･ Recomposition of Revenue Structure ･ Expenses ･ Profitability & Efficiency ･ Major Figures related to Balance Sheet Mitsui Trust Financial Group 4
Management Direction Management Direction Mitsui Trust Financial Group Management Actions Concentration on high Further margin & high growth Enhancement promotion of business segments within Increasing strategic businesses recomposition of revenues of revenue Profitability Expansion of overall structure investment in management resources Strengthening of Maintenance and improvement of sound financial base Balance Sheet Mitsui Trust Financial Group 5
Summary of Strategic Business Operations Items FY3/07 Actual FY3/08 Plan Enhancement of Profitability Investment trust & Sales amount: ¥924.0 bn (Record High) Sales amount: ¥990.0 bn Annuity insurance （ ¥140.3 bn increase, or 17.9 % increase YoY ） Aim to break the record Revenue: ¥40.0 bn Revenue: ¥38.7 bn (Record High) Real estate （ ¥8.4 bn increase, or 27.7 % increase YoY ） Maintain the record high level Loan balance*: ¥2,140.9 bn Net increase: （ ¥222.0 bn increase, or 11.6% increase YoY ） Housing loans ¥217.0 bn *after securitization Loan balance*: ¥56.5 bn Loan balance: “Business loans” （ ¥49.9 bn increase or 756 % increase YoY ） ¥120.0 bn *CMTB’s portion Loan balance: Corporate restructuring & Loan balance: ¥80.3 bn revitalization related finance ¥100.0 bn （ ¥39.2 bn increase or 95.3 % increase YoY ） Mitsui Trust Financial Group 6
Financial Summary FY3/07 Highlights & FY3/08 Outlook a b c:b-a d e:d-b (Yen bn) Actual Outlook CMTB+MATB, non-consolidated FY3/06 FY3/07 Change % FY3/08 Change % Gross operating profit *1 283.3 275.3 (7.9) (3)% 291.0 15.7 6% 16.2 - (16.2) - - Of which housing loan securitization profit 100.2 98.2 (1.9) (2)% 111.0 12.8 13% Operating expenses Pre-provision profit *2 183.0 177.0 (5.9) (3)% 180.0 3.0 2% 65.6 29.7 (35.8) 20.0 (9.7) Credit Costs 26.5 8.6 (17.9) - (8.6) Net stock related profit (18.7) (1.8) 16.9 (10.0) (8.2) Net other profit (loss) 125.2 154.1 28.8 23% 150.0 (4.1) (3)% Recurring profit - 1.7 18.1 16.3 (18.1) Extraordinary Profit Of which gain on partial withdrawal of employee - 15.8 15.8 - (15.8) retirement benefit trust 0.1 43.3 43.2 47.5 4.2 Deferred income taxes 118.2 118.4 0.1 0% 90.0 (28.4) (24)% Net income MTH, Consolidated FY3/06 FY3/07 Change % FY3/08 Change % 138.3 159.9 21.6 16% 155.0 (4.9) (3)% Recurring profit 119.6 112.7 (6.8) (6)% 85.0 (27.7) (25)% Net income *1 Before trust a/c credit costs *2 Effective net operating profit before trust a/c credit costs & provision(reversal) of general reserve Mitsui Trust Financial Group 7
Revenues by Business Unit Revenues by Business Unit a b c:b-a d e:d-b （Yen bn） Actual Outlook CMTB+MATB, non-consolidated FY3/06 FY3/07 Change % FY3/08 Change % 125.9 132.8 6.9 5% 141.0 8.2 6% Asset management business Investment trust & Annuity insurance related 40.5 43.0 2.5 6% 50.5 7.5 17% 18.3 30.0 11.7 64% 36.5 6.5 22% Of which investment trust related* 30.3 38.7 8.4 28% 40.0 1.3 3% Real estate related 24.5 26.1 1.6 7% 28.5 2.4 9% Pension** 16.7 14.5 (2.2) (13)% 14.5 0.0 0% Stock transfer agency 157.4 142.5 (14.9) (9)% 150.0 7.5 5% Banking business 70.7 65.8 (4.9) (7)% 71.0 5.2 8% Corporate loans, Bond investments, etc. 33.8 37.0 3.2 9% 39.0 2.0 5% Loans to individuals 11.5 9.6 (1.9) (17)% 8.0 (1.6) (17)% Real estate asset finance 24.5 25.3 0.8 3% 23.5 (1.8) (7)% Alternative investments Business loans and Corporate restructuring 0.6 4.8 4.2 700% 8.5 3.7 77% & revitalization related finance 16.2 - (16.2) - - - - Housing loan securitization profit 283.3 275.3 (7.9) (3)% 291.0 15.7 6% Gross operating profit * Includes fees related to sales, administration and management of investment trusts **Managerial accounting basis changed as of April 2007. Figures as of FY3/06 and FY3/07 above are classified on the new basis for comparison purposes. Mitsui Trust Financial Group 8
Recomposition of Revenue Structure Recomposition of Revenue Structure Composition of gross operating profit （ CMTB+MATB, non-consolidated) Conventional Banking Business Business Banking Corporate loans Bond investments, etc. 24% 25% 31% 43% Strategic Business 56% 63% 13% 13% ● Loans to individuals Business Banking ● Real estate asset finance 12% 4% 3% ● Alternative investments 4% 8% 9% ● Business loans and 12% 2% 3% Corporate restructuring & 9% revitalization related finance 5% 11% 16% 76 % 17% 75 % 3% 14% 69 % Asset Management 11% 4% 10% ● Investment trust & Annuity 1% 57 % 2% Business 6% 14% 11% 13% 2% insurance 44 % 9% 4% 37 % 3% ● Real estate related business ● Other asset management 19% 19% 18% 18% 18% 18% businesses FY3/03 FY3/04 FY3/05 FY3/06 FY3/07 FY3/08 （ E ） Mitsui Trust Financial Group 9
Expenses Operating Expenses (CMTB+MATB, non-consolidated) Strategy Operating Expenses Proactive increases in operating expenses to invest in high margin & high growth business segments Personnel Overhead Ratio Thorough low-cost operation to maintain current efficiency level YoY Comparison of Strategic Expenses ＊ Overhead Ratio # of Group total employees & （ CMTB+MATB, non-consolidated ） （ CMTB+MATB, non-consolidated ） # of Consulplazas * [# of branches: 67 (no change)] Non-Personnel 11,000 25 Bank employees + Personnel [Excluding allowance for retirement benefit] (%) (Yen bn) contract employees 114.0 110.6 50% 105.9 120 （ Plan ） 107.4 Consulplazas 10,400 10,500 38.1% 35.8% 35.3% 35.6% 40% 10,157 63.5 80 63.2 61.3 60.5 30% 10,000 20 19 9,609 9,561 20% 40 9,500 17 10% 50.5 47.4 46.1 ～ 45.4 ～ 16 9,000 15 0% 0 0 FY3/05 FY3/06 FY3/07 FY3/08 （ E ） 3/05 3/06 3/07 3/08 As of FY3/05 FY3/06 FY3/07 FY3/08(E) * Personnel [excluding allowance for retirement benefit] *in-store mini branches + Non-Personnel Mitsui Trust Financial Group 10
Profitability & Efficiency Profitability & Efficiency: FY3/07 Comparison of Major Banking Groups 2.5% 3% Good Profitability & Efficiency: Gross operating profit Top among major banking groups Total assets (end balance ） Mitsui Trust * 2% Other major banking groups 2.0% High ↑ Profitability Gross operating profit 2.1 ％ ↓ ＝ Total assets Low Overhead ratio = 35.6 % 1.5% 2% Poor 1.0% 1% 55% 50% 45% 40% 35% 30% Low ← Efficiency → High Overhead ratio * CMTB+MATB, non-consolidated Mitsui Trust Financial Group 11
Major Figures related to Balance Sheet Items FY3/07 Actual FY3/08 Plan Major Figures related to Balance Sheet NPL ratio *1 Maintain under 2 % Actual: 0.1% down to 1.7% YoY Significantly decreased to ¥29.8b n Credit costs *1 Estimate: ¥20.0 bn from ¥65.6 bn of FY3/06 Actual: 67 % of Tier I *3 Equity portfolio *2 Maintain current level from 62 % in 3/06 Actual: 7 % of Tier I *3 Further decrease Net DTA *2 relative to Tier I from 18 % in 3/06 Retained earnings *4 Increase to ¥400 bn level ¥89.2 bn increased to ¥343.2 bn *1 CMTB, Non-consolidated *2 MTH, Consolidated *3 Tier I as of 3/07 is on Basel II basis *4 Total retained earnings of MTH+CMTB+MATB less an appropriation for accumulated earned reserve Mitsui Trust Financial Group 12
Ⅲ . Strategic Business Operations 1. Asset Management Business 2. Banking Business 3. Strategic Subsidiaries Mitsui Trust Financial Group 13
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