Analyst Meeting Analyst Meeting Presentation Material Presentation - PowerPoint PPT Presentation

Analyst Meeting Analyst Meeting Presentation Material Presentation Material May 28, 2010 Chuo Mitsui Trust Group

Agenda Ⅰ .Status of Profit Ⅳ .Condition of Assets Financial Summary P3 Loan Portfolio P17 Factors for Increase/Decrease in Net Profit P4 NPL/Credit Cost P18 Factors for Increase/Decrease in Gross P5 Securities P19 Operating Profit Ⅴ .Status of Capital Recomposition of Revenue Structure P6 Capital/Public Funds P21 Expenses P7 （ References ） Other business Areas Ⅱ .Business Strategy Pension/Stock Transfer Agency P23 Management Direction for FY3/11 P9 Real Estate Asset Finance P24 Outlook for FY3/11 P10 Alternative Investments P25 Loan Portfolio and Trend of Yields P26 Gross Operating Profit by Business Unit P11 Ⅲ .Priority Businesses Investment Trust & Annuity Insurance P13 related Business Real Estate Business P14 Loan to Individuals P15 1

Ⅰ .Status of Profit ・ Financial Summary ・ Factors for Increase/Decrease in Net Profit ・ Factors for Increase/Decrease in Gross Operating Profit ・ Recomposition of Revenue Structure ・ Expenses 2

Financial Summary FY3/10 Highlights a b c:b-a (Yen bn) Actual CMTB+CMAB, non-consolidated FY3/09 FY3/10 Change % Gross operating profit *1 228.7 226.9 (1.8) (1)% （ m inus ） 115.9 117.9 2.0 2% Operating expenses [Net periodic retirement [(0.4)] [4.3] [4.8] （ m inus ） benefit cost] Pre-provision profit *2 112.8 108.9 (3.8) (3)% (226.6) (23.9) 202.7 Net other profit (loss) and others [(69.7)] [(1.7)] [67.9] [Losses on devaluation of stocks] [(113.3)] [(0.6)] [112.7] [Losses on sales of Japanese stock related investm ents] (113.8) 85.0 198.8 Ordinary profit 7.7 2.6 (5.1) Extraordinary profit （ m inus ） (26.0) 30.0 56.1 Current and Deferred income taxes (79.9) 57.6 137.6 Net incom e （ m inus ） 21.2 7.5 (13.6) Credit Costs CMTH, consolidated FY3/09 FY3/10 Change (116.9) 83.4 200.3 Ordinary profit (92.0) 46.8 138.8 Net incom e 5.00yen 8.00yen 3.00yen 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 Net Profit Result of FY3/10 Net income increased substantially, mainly due to decrease of credit costs, devaluation losses for stock holding, and losses by sales of Japanese stock related investments posted in FY3/09 Factors for Increase/Decrease in Net Profit （ CMTB+CMAB non-consolidated ） (Yen bn) (58.0) Increase factor Decrease factor 57.6 185.7 137.6 (79.9) 13.6 (1.8) (2.0) FY3/09 FY3/10 Gross Operating Others Credit costs Net stock operating expenses (Current and related profit profit (Net periodic Deferred retirement income benefit cost taxes) (4.8)) 4

Factors for Increase/Decrease in Gross Operating Profit Result of FY3/10 Gross operating profit was maintained at the same level as FY3/09 by steady increase in market related profit and loan to individuals, although profit from selling of investment trusts and annuity insurances, real estate related business decreased YoY. Factors for Increase/Decrease in Gross Operating Profit （ CMTB+CMAB, non-consolidated ） （ Yen bn ） Conventional Banking Businesses Strategic Businesses Increase factor Decrease factor Priority Segm ents 1.2 (2.9) 2.8 1.4 (4.1) (1.8) (0.2) Corporate Bond Loans to Investment Others Real estate loans, etc. investments, individuals trust & 228.7 etc. Annuity 226.9 insurance FY3/09 FY3/10 5

Recomposition of Revenue Structure Recomposition of Revenue Structure Breakdown of gross operating profit by business segment (CMTB+CMAB, non-consolidated) Banking related Conventional Banking Businesses Businesses ○ Corporate loans, etc. 16% 19% 20% 23% ○ Bond Investments, etc Strategic Businesses 13% 18% ● Loan to Individuals Banking related 19% Businesses ○ Real estate asset finance 15% ○ Alternative investments 40% 4% 20% ○ Other banking related 21% 4% businesses 2% 5% ● Investment trust & Annuity △1% 17% 5% 2% 71% insurances 2% 63% 1% ● Real estate Asset Management 61% 11% 13% Businesses 12% 2% ○ Pension 12% 2% 6% 37% 3% 4% ○ Stock transfer agency 9% 11% 10% 10% ○ Other asset management 5% 6% businesses 5% 5% 5% 2% 1% 1% Sum of loans to individuals, FY3/03 FY3/08 FY3/09 FY3/10 investment trust & annuity insurance, and real estate １６％ ４４％ ３９％ ３７％ 6

Expenses Expenses Operating Expenses OHR Operating expense excluding net retirement benefit OHR keeps the same level cost decreased as a result of restraining operation Trend of OHR Trend of Operating Expenses (CMTB+CMAB, non-consolidated) (CMTB+CMAB, non-consolidated) Tax Non-Personnel Personnel [Excluding retirement benefit cost] (%) (Yen bn) 60.0% 50.8% 118.5 50.0% 116.4 113.5 120 5.5 4.6 44.7% 5.3 40.0% 61.1 59.2 80 56.6 20.0% 40 51.8 52.5 51.5 0.0% 0 FY3/08 FY3/09 FY3/10 FY3/08 FY3/09 FY3/10 *Operating expenses (excluding net retirement benefit cost)/ gross operating profit 7

Ⅱ .Business Strategy ・ Management Direction for FY3/11 ・ Outlook for FY3/11 ・ Gross Operating Profit by Business Unit 8

Management Direction for FY3/11 Management Direction FY3/11 as approaching year for management integration with Sumitomo Trust Group Enhancing the profitability by continuing current management direction 〔 Pre-provision profit and credit costs to Total Assets 〕 1.Increase in Gross Operating Profit by （ 3 years average ） recomposition of revenue structure ➢ Investment trust and annuity insurance Keep focusing as ➢ Real Estate priority businesses ➢ Loan to Individuals 1.02% 0.90% 2. Strengthen the low cost operation 0.73% 0.69% 0.40% ➢ Restraining cost operation 0.11% 0.18% 0.18% 3. Maintain and promoting the soundness of 0.27% 0.42% asset quality ➢ Maintain the soundness of loan portfolio CMTH Megabank A Megabank B Megabank C Trust bank D ➢ Reduction of equity holdings at early stage Pre-provision profit ÷ Total Assets Credit Costs ÷ Total Assets Consolidated base Promoting the business model with high profitability and financial soundness 9

Outlook for FY3/11 Outlook for FY3/11 Management Direction (Yen bn) CMTB+CMAB Actual Outlook non-consolidated FY3/10 FY3/11 Change Increasing in gross operating profit by focusing on 3 Gross operating profit *1 226.9 230.0 3.0 Increasing in gross operating profit by focusing on 3 priority businesses 117.9 115.0 (2.9) （ minus ） Operating expenses priority businesses [Net periodic retirement benefit cost] （ minus ） [4.3] [(1.0)] [(5.3)] Pre-provision profit *2 108.9 115.0 6.0 Expecting the decrease of operation expenses by Expecting the decrease of operation expenses by decreasing net periodic retirement benefit cost decreasing net periodic retirement benefit cost (23.9) (25.0) (1.0) Net other profit (loss) and others [(1.7)] [-] [1.7] [Losses on devaluation of stocks] [Losses on sales of Japanese stock [(0.6)] [-] [0.6] related investments] Risks for additional loss are reduced by posting Risks for additional loss are reduced by posting 85.0 90.0 4.9 Ordinary Profit devaluation losses for stock holding and losses on devaluation losses for stock holding and losses on sales of Japanese stock related investments in 2.6 - (2.6) sales of Japanese stock related investments in Extraordinary profit FY3/09. Promoting the reduction of equity holdings FY3/09. Promoting the reduction of equity holdings 30.0 30.0 (0.0) Current and Deferred income taxes （ minus ） for further reduction of risks. for further reduction of risks. 57.6 60.0 2.3 Net income 7.5 10.0 2.4 （ minus ） Credit costs Maintain the soundness of loan portfolio to keep the Maintain the soundness of loan portfolio to keep the credit cost at a low level credit cost at a low level CMTH, consolidated FY3/10 FY3/11 Change 83.4 90.0 6.5 Ordinary profit 46.8 50.0 3.1 Net income 8.00yen 8.00yen 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 10

Gross Operating Profit by Business Unit Gross Operating Profit by Business Unit （ Yen bn ） a b c:b-a d e:d-b CMTB+CMAB Actual Outlook non-consolidated FY3/09 FY3/10 Change % FY3/11 Change % 85.4 72.7 (12.7) (15)% 85.0 12.2 17% Asset Management Businesses 29.9 26.9 (2.9) (10)% 30.0 3.0 11% Investment trust & Annuity insurance 13.9 9.8 (4.1) (30)% 18.0 8.1 84% Real estate 24.4 22.7 (1.7) (7)% 23.0 0.2 1% Pension 14.0 11.7 (2.3) (17)% 12.0 0.2 2% Stock transfer agency 143.2 154.1 10.9 8% 145.0 (9.1) (6)% Banking related Businesses 85.7 90.0 4.2 5% 83.0 (7.0) (8)% Conventional banking businesses [44.4] [45.9] [1.4] [3%] [41.0] [(4.9)] [(11)%] [Corporate loans, etc.] [41.3] [44.1] [2.8] [7%] [42.0] [(2.1)] [(5)%] [Bond investments, etc.] 45.3 46.5 1.2 3% 44.0 (2.5) (6)% Loans to individuals 10.9 11.3 0.3 3% 12.0 0.6 6% Real estate asset finance (2.4) 4.1 6.5 - 4.0 (0.1) (3)% Alternative investments [5.3] [2.2] [(3.0)] [(58)%] [4.0] [1.7] [81%] [Investment return] [(7.7)] [1.9] [9.6] - [0.0] [(1.9)] [(100)%] [CDO unrealized gains/losses] 3.5 2.1 (1.3) (39)% 2.0 (0.1) (6)% Other banking related businesses 228.7 226.9 (1.8) (1)% 230.0 3.0 1% Gross operating profit 11