Analyst Meeting Analyst Meeting Presentation Material Presentation - PowerPoint PPT Presentation

Analyst Meeting Analyst Meeting Presentation Material Presentation Material May 28, 2008 Chuo Mitsui Trust Group

Agenda Ⅰ . Financial Summary and Management Direction Ⅱ . Management Strategies Ⅲ . Strategic Business Operations Ⅳ . Strengthening the Balance Sheet Ⅴ . Topics 1

Ⅰ . Financial Summary and Management Direction ･ Financial Summary ･ Management Direction 2

Financial Summary FY3/08 Highlights & FY3/09 Outlook a b c:b-a d e:d-b (Yen bn) Actual Outlook CMTB+CMAB, non-consolidated FY3/07 FY3/08 Change % FY3/09 Change % Gross operating profit *1 275.3 265.2 (10.0) (4%) 277.0 11.7 4% 98.2 110.8 12.5 13% 117.0 6.1 6% Operating expenses [(17.1)] [(7.7)] [9.3] [Net periodic benefit cost] Pre-provision profit *2 177.0 154.4 (22.6) (13%) 160.0 5.5 4% (22.9) (27.5) (4.6) (25.0) 2.5 Net other profit (loss) and others 154.1 126.8 (27.3) (18)% 135.0 8.1 6% Recurring profit 18.1 8.1 (9.9) - (8.1) Extraordinary profit [Gain on partial withdrawal of [15.8] [-] [(15.8)] [-] [-] employee retirement benefit trust] 43.3 42.8 (0.5) 41.5 (1.3) Deferred income taxes 118.4 81.9 (36.4) (31)% 85.0 3.0 4% Net income 29.7 9.5 (20.2) 10.0 0.4 Credit costs CMTH, consolidated FY3/07 FY3/08 Change % FY3/09 Change % 159.9 125.3 (34.5) (22)% 140.0 14.6 12% Recurring profit 112.7 71.8 (40.9) (36)% 80.0 8.1 11% Net income ¥5 ¥7 ¥7 Dividend per share *1 Before trust a/c credit costs *2 Effective net operating profit before trust a/c credit costs & provision(reversal) of general reserve 3

Management Direction Management Direction Chuo Mitsui Trust Group Management Actions Increase of Enhancement Concentration on high Recomposition gross margin & high growth of of revenue operating business segments within structure Profitability strategic businesses profit Strengthening Continuous focus on the maintenance the and improvement of a financial base Balance Sheet 4

Ⅱ . Management Strategies ･ Recomposition of Revenue Structure ･ Revenue Trends ･ Status of Gross Operating Profit ･ Revenues by Business Unit ･ Expense Situation 5

Recomposition of Revenue Structure Recomposition of Revenue Structure Breakdown of gross operating profit by business segment (CMTB+CMAB, non-consolidated) Conventional businesses business, etc. 15% 16% Banking 17% 18% 23% ● Corporate loans ● Bond investments, etc. 9% 13% 12% 14% Strategic businesses 13% Banking business 15% 16% 12% 4% ● Loans to individuals 40% 9% 4% 4% 4% ● Real estate asset finance 4% 3% 2% 9% 2% 2% ● Alternative investments 16% 71% 71% 76% 17% 18% 14% ● Other banking related 68% 11% businesses 2% 14% 11% 3%2% 12% 13% ● Investment trust 37% & Annuity insurance 9% Asset management 9% 10% 10% 10% ● Real estate 5% 6% 5% 5% business 5% 4% 2% 3% 3% 1% ● Pension FY3/03 FY3/06 FY3/07 FY3/08 FY3/09 ● Stock transfer agency (Outlook) ● Other asset management １６％ ３７％ ４３％ ４４％ ４７％ Sum of businesses loans to individuals, From conventional businesses More focus on high profit and high growth investment trust & annuity insurance, areas within strategic businesses to strategic businesses and real estate 6

Revenue Trends Revenues excluding effects of securitization showed a steady growth trend until FY3/07, but in FY3/08 turned to a decrease YoY ⇒ We aim to increase revenues in FY3/09 Revenue Trend Revenue Trend excluding Effects of Securitization* (CMTB+CMAB, non-consolidated) (CMTB+CMAB, non-consolidated) (Yen bn) (Yen bn) 298.1 300 300 286.7 283.3 284.0 277.0 280 275.3 280 275.1 274.0 267.4 265.2 260 260 240 240 220 220 ～ ～ ～ ～ 200 200 0 0 FY3/05 FY3/06 FY3/07 FY3/08 FY3/09 FY3/05 FY3/06 FY3/07 FY3/08 FY3/09 (Outlook) (Outlook) * Excludes securitization profits which are posted upfront when securitization takes place, and amortization costs which are posted in the following years 7

Status of Gross Operating Profit Items FY3/08 Actual FY3/09 Plan Main Strategic Businesses Revenue: ¥45.2bn （ record high) Leverage on the trend towards a shift from savings to investment Investment trust & （ ¥2.2bn or 5% increase YoY) Annuity insurance Revenue: ¥49.0bn Stock-based fee increased despite decrease in sales amount （ ¥3.7bn or 8% increase YoY) Continue to Capture robust demand of investors focus as Revenue: ¥31.7bn in the trend toward real estate main becoming financial products Real estate ( (¥7.0bn) or 18% decrease YoY ) strategic Revenue ¥36.0bn Affected by market slowdown in March business （ ¥4.2bn or 14% increase YoY) segments New origination ¥683.1bn （ record high) Further enhancement of route sales （ ¥203.1bn or 42% increase YoY) New origination ¥690.0bn Housing loan Route sales strategy brought in ¥103.1bn （ ¥6.9bn or 1% increase YoY) exceeding initial plan Lending Businesses Improvement in yield margin through Focus towards higher profit recomposition of loan portfolio and rise in loans such as overseas Grasp profit Loans lending rate* lending, in addition to housing opportunities YoY improvement: +9bps loans * Banking a/c(domestic funds)+loan trust+JOMTs, After excluding effects of securitization profit and amortization 8

Revenues by Business Unit Revenues by Business Unit a b c:b-a d e:d-b （ Yen bn ） Actual Outlook CMTB+CMAB, non-consolidated FY3/07 FY3/08 Change % FY3/09 Change % 130.1 121.9 (8.1) (6)% 127.0 5.0 4% Asset management business Investment trust & Annuity insurance 43.0 45.2 2.2 5% 49.0 3.7 8% 38.7 31.7 (7.0) (18)% 36.0 4.2 14% Real estate 26.0 26.6 0.6 2% 27.5 0.8 3% Pension 14.5 13.6 (0.8) (6)% 12.0 (1.6) (12)% Stock transfer agency Banking related business 145.2 143.2 (1.9) (1)% 150.0 6.7 5% 68.2 77.5 9.3 14% 80.0 2.4 3% Conventional banking businesses [42.4] [43.3] [0.8] [46.5] [3.1] [2%] [7%] [Of which Corporate loans] [25.7] [34.2] [8.4] [33.5] [(0.7)] [33%] [(2%)] [Of which Bond investments, etc.] 37.1 39.5 2.4 7% 45.5 5.9 15% Loans to individuals 9.7 9.9 0.1 2% 10.0 0.1 1% Real estate asset finance 25.3 9.5 (15.7) (62)% 9.5 0.0 0% Alternative investments Other banking related businesses 4.8 6.6 1.8 38% 5.0 (1.6) (25)% 275.3 265.2 (10.0) (4)% 277.0 11.7 4% Gross operating profit 9

Expense Situation Operating Expenses (CMTB+CMAB, non-consolidated) FY3/08 Actual FY3/09 Plan Operating Strategic expenses *1 increased by 2.2% YoY Allocation to high margin and high growth Expenses due to strategic investments in focus areas business segments Personnel Trend of Strategic Expense Ratio * 2 Trend of Strategic Expenses * 1 （ CMTB+CMAB, non-consolidated ） （ CMTB+CMAB, non-consolidated ） Non-personnel (%) (Yen bn) 50% Personnel excluding net perioding benefit cost 42.6% 114.0 41.1% 113.0 120 110.6 40.2% 105.9 37.4% 40% 60.5 61.1 80 30% FY3/09 Outlook 63.2 60.5 Lower strategic expense ratio than FY3/08 Though overhead ratio including net 20% periodic benefit cost and taxes will rise YoY 40 from FY3/08, we will maintain one of the 53.5 highest level of efficiency among peers 51.8 10% 47.4 45.4 FY3/09 Outlook: 42.2% 0 0% FY3/06 FY3/07 FY3/08 FY3/09 FY3/06 FY3/07 FY3/08 FY3/09 (Outlook) (Outlook) * 2 ( Personnel cost excluding net periodic benefit cost + non-personnel * 1 Personnel cost excluding net periodic benefit cost + non-personnel cost cost) / gross operating profit 10

Ⅲ . Strategic Business Operations 1. Asset Management (Fee) Business • Investment Trust & Annuity Insurance related Business • Real Estate Business • Pension Business ＆ Stock Transfer Agency Business • Fees from Asset Management Business 2. Banking Related Business • Loans to Individuals • Real Estate Asset Finance • Loan Portfolio • Yields and Margins • Alternative Investments 3. Strategic Subsidiaries • Enhancing Asset Management Subsidiary ① -Chuo Mitsui Asset Management- • Enhancing Asset Management Subsidiary ② -Chuo Mitsui Capital- • Future Development 11