Analyst Meeting Analyst Meeting Presentation Material Presentation Material November 26, 2009 Chuo Mitsui Trust Group
Agenda Ⅰ . Status of Profit Ⅱ . Status of Assets Ⅲ . Priority Businesses Operations Ⅳ . Status of Capital 《 References 》 Status of Other Businesses *CMTH: Chuo Mitsui Trust Holdings *CMTB: Chuo Mitsui Trust and Banking *CMAB: Chuo Mitsui Asset Trust and Banking 1
Ⅰ . Status of Profit ・ Financial Summary ・ Factors for Increase/Decrease in Gross Operating Profit ・ Gross Operating Profit by Business Unit ・ Factors for Increase/Decrease in Net Income ・ Recomposition of Revenue Structure ・ Management Direction for 2H.FY3/10 2
Financial Summary 1H.FY3/10 Highlights & FY3/10 Outlook a b c:b-a d e f:e-d (Yen bn) Actual Outlook CMTB+CMAB, non-consolidated 1H.FY3/09 1H.FY3/10 Change % FY3/09 FY3/10 Change % Gross operating profit *1 121.4 116.2 (5.1) (4)% 228.7 220.0 (8.7) (4)% 59.0 58.9 (0.0) (0)% 115.9 120.0 4.0 4% Operating expenses （ minus ） [Net periodic retirement [(0.2)] [2.1] [2.4] [(0.4)] [4.0] [4.4] benefit cost] （ minus ） Pre-provision profit *2 62.4 57.3 (5.0) (8)% 112.8 100.0 (12.8) (11)% (35.0) (21.1) 13.8 (226.6) (40.0) 186.6 Net other profit (loss) and others [(16.2)] [(1.1)] [15.0] [(69.7)] [-] [69.7] [Losses on devaluation of stocks] [-] [(0.5)] [(0.5)] [(113.3)] [-] [113.3] [Losses on sales of Japanese stock related investments] 27.3 36.1 8.7 32% (113.8) 60.0 173.8 - Ordinary profit 9.8 1.4 (8.4) 7.7 - (7.7) Extraordinary profit 20.1 12.7 (7.3) (26.0) 20.0 46.0 Current and Deferred income taxes （ minus ） 17.1 24.8 7.6 45% (79.9) 40.0 119.9 - Net income 0.3 11.0 10.6 21.2 20.0 (1.2) Credit Costs （ minus ） CMTH, consolidated 1H.FY3/09 1H.FY3/10 Change FY3/09 FY3/10 Change 26.9 34.3 7.4 28% (116.9) 60.0 176.9 - Ordinary profit 13.7 19.0 5.3 38% (92.0) 30.0 122.0 - Net income - - 5.00yen 5.00yen Dividends per share (common stocks) *1 Before trust a/c credit costs *2 Effective net operating profit before trust a/c credit costs & provision (reversal) of general reserve 3
Factors for Increase/Decrease in Gross Operating Profit Result of 1H.FY3/10 Gross operating profit of Investment trust, Annuity insurance, and Real estate related businesses, which are part of priority segments, are decreasing YoY, on early stage of the recovery. Total gross operating profit remains around the same level YoY, as Loan to individuals and Market related business made strong profit. Factors for Increase/Decrease in Gross Operating Profit (CMTB+CMAB, non-consolidated) （ Y en bn ） Conventional Banking Businesses Strategic Businesses Increase factor D ecrease factor P riority Segments 2.4 (5.1) 4.5 1.0 (5.9) Lo an s to Co rp o rate 1.5 (5.1) in d iv id u als lo an s , etc. Bo n d inv es tmen ts , (3.6) etc. In v es tmen t tru s t & A n n u ity in s u ran ce A ltern ativ e Oth ers in v es tmen ts 121.4 Real es tate 116.2 1H .FY 3/09 1H .FY 3/10 4
Gross Operating Profit by Business Unit Gross Operating Profit by Business Unit a b c:b-a d e f:e-d （ Yen bn ） Actual Outlook CMTB+CMAB, non-consolidated 1H.FY3/09 1H.FY3/10 Change % FY3/09 FY3/10 Change % 50.2 36.1 (14.0) (28)% 88.3 77.0 (11.3) (13)% Asset management businesses Investment trust & Annuity insurance 18.3 13.1 (5.1) (28)% 29.9 26.0 (3.9) (13)% 10.2 4.3 (5.9) (58)% 13.9 16.0 2.0 15% Real estate 12.9 11.4 (1.5) (12)% 24.4 23.0 (1.4) (6)% Pension 7.3 6.0 (1.2) (17)% 14.0 10.5 (3.5) (26)% Stock transfer agency 71.2 80.1 8.8 12% 140.4 143.0 2.5 2% Banking related businesses 41.5 47.1 5.5 13% 82.9 78.0 (4.9) (6)% Conventional banking businesses [23.2] [24.3] [1.0] [44.4] [44.0] [(0.4)] [5%] [(1%)] [Corporate loans, etc.] [18.3] [22.8] [4.5] [38.5] [34.0] [(4.5)] [(12%)] [25%] [Bond investments, etc.] 21.7 24.1 2.4 11% 45.3 47.0 1.6 4% Loans to individuals 4.8 5.1 0.2 6% 10.9 11.0 0.0 0% Real estate asset finance 0.9 2.4 1.5 170% (2.4) 4.0 6.4 - Alternative investments [4.0] [1.2] [(2.7)] [(68%)] [5.3] [3.0] [(2.3)] [(43%)] [Investment return] [(3.1)] [1.1] [4.3] [(7.7)] [1.1] [8.8] - - [CDO unrealized gains/losses] 2.0 1.0 (0.9) (47)% 3.5 3.0 (0.5) (16)% Other banking related businesses 121.4 116.2 (5.1) (4)% 228.7 220.0 (8.7) (4)% Gross operating profit 5
Factors for Increase/Decrease in Net Income Result of 1H.FY3/10 Despite decrease in gross operating profit and increase in credit costs, net income for 1H.FY3/10 increased YoY, as stock related profit recovered significantly YoY. Factors for Increase/Decrease in Net Income （ CMTB+CMAB, non-consolidated ） （ J P Y b n ） 6 .9 7 .6 2 4 .8 (5 .1 ) 0 .0 1 6 .4 1 7 .1 （ Of which (1 0 .6 ) ｌ oss on devaluation of stocks 15.0 ） 1 H .F Y 3 /0 9 1 H .F Y 3 /1 0 G ro ss o p era tin g O p e ra tin g C re d it co sts O th e rs N e t sto c k p ro fit e x p e n se s re late d p ro fit In cre ase fac to r D e crea se fac to r 6
Recomposition of Revenue Structure Recomposition of Revenue Structure Breakdown of gross operating profit by business segment (CMTB+CMAB, non-consolidated) Conventional Banking Banking Related Businesses Businesses ◇Corporate loans, etc. 19% 21% 23% ◇Bond investments, etc. Strategic Businesses 17% ◆ Loans to individuals 20% Banking Related ◇Real estate asset finance Businesses ◇Alternative investments 40% 20% ◇Other banking related 21% businesses 5% (1)% 2% ◆ Investment trust 4% & Annuity insurance 2% 64% 11% 13% Asset Management 1% 59% ◆ Real estate 2% Businesses 11% 2% 6% 3% ◇Pension 37% 4% 9% 11% 10% ◇Stock transfer agency 5% 6% 5% ◇Other asset management 5% Sum of loans to 2% 1% businesses individuals, investment FY3/03 FY3/09 1H.FY3/10 trust & annuity insurance, and real estate １６％ ３９％ ３６％ 7
Management Direction for 2H.FY3/10 Management Direction Direction for 2H.FY3/10 Increase in gross operating profit through recomposition of revenue structure Investment trust & Investment trust & Continue to focus as priority segments in Annuity insurance Annuity insurance light of medium to long term growth potential, despite slow market recovery in Real estate Real estate the short term Continue to promote positively with Loans to individuals Loans to individuals attention to profitability Shifting from revenue Regarding corporate loans, focusing on loans with good risk/return structure relying on profile, while paying attention to worsening of credit risks conventional banking businesses Concentration on high margin & high growth area within strategic businesses No change to FY3/10 earning forecast 8
Ⅱ.Status of Assets ・ Status of Loan Portfolio ・ NPL ・ Credit Costs Situation ・ Status of Available-for-Sale Securities 9
Status of Loan Portfolio High quality loan portfolio leads to limited downside risk Loans by Industry *1 ・ 10 （ As of 9/09 ） Loans by Size of Borrowers ＊ 10 （ As of 9/09 ） Corporate Loans 2% 100% 6% Others* 6 Consumer finance related *2 ： 1 ％ We have curtailed our exposure to consumer finance companies, Large Companies* 7 28% which include sales finance 22% companies and credit card 80% Ratio of Housing Loans to Total Loans *11 (Comparison of Major companies. Ratio of loans to Mid-sized consumer finance companies to 57% Banks ） （ As of 9/09 ） 3% companies* 8 total loans: 0.1% 2% Construction : 1 ％ 40% 60% 35% 25% Real estate companies ： 9 ％ SMEs *9 30% 42% Including ratio of loans to large 24% companies and their group 22% companies to total loans: 4.0 ％ 7% 40% 7% 20% 16% Real Estate 14% Asset Finance *3 Real Estate Asset Finance *3 LTV of 70% and below : 89% 10% � DSCR of 2.0 × and above : 88% � 20% 36% 36% Loans to 27% 0% Housing Loan and others individuals Loss rate *4 on housing loans: 0.08% CMTH A Ｂ Ｃ Ｄ （ Annualized rate of pay-out on guarantees by Chuo Mitsui Guarantee *11. Source: Company disclosures 0% in 1H.FY3/10) *5 As of 9/09, non-consolidated, post-securitization CMTH *1 *1 Domestic 当社 国内銀行 banks total *5. Source: Bank of Japan *1. Managerial accounting-basis, CMTB non-consolidated. Balance at period end, post-securitization *6. Local governments ＋ Overseas yen loans, Domestic loans transferred overseas *2. Loan providers that charge interest rates in excess of the upper limit set by the Interest Rate Restriction Law (“Gray Zone” Interest Rates) *7. Large companies: capital of JPY 1bn or more and with more than 300 employees *3. Does not include bond-types *8. Mid-sized companies: companies other than large companies and SMEs *9. SMEs: capital of JPY 300 mn or less or less than 300 employees *4. Rate of pay-out on guarantees by Chuo Mitsui Guarantee (based on number of pay-outs) *10. Applies new category of survey on ”Loans and Discounts outstanding by Sector” by Bank of Japan. 10
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