CLSA Japan Forum 2007 Mitsubishi UFJ Financial Group I nvestor Presentation February 2007 0
This document contains forward - looking statements in regard to forecasts, targets and plans of Mitsubishi UFJ Financial Group, Inc. (“MUFG”) and its respective group companies (collectively, “the group”). These forward - looking statements are based on information currently available to the group and are stated here on the basis of the outlook at the time that this document was produced. In addition, in producing these statements certain assumptions (premises) have been utilized. These statements and assumptions (premises) are subjective and may prove to be incorrect and may not be realized in the future. Underlying such circumstances are a large number of risks and uncertainties. Please see other disclosure and public filings made or will be made by MUFG and the other companies comprising the group, including the latest kessan tanshin, financial reports, Japanese securities reports and annual reports, for additional information regarding such risks and uncertainties. The group has no obligation or intent to update any forward-looking statements contained in this document. In addition, information on companies and other entities outside the group that is recorded in this document has been obtained from publicly available information and other sources. The accuracy and appropriateness of that information has not been verified by the group and cannot be guaranteed. The financial information used in this document was prepared in accordance with accounting standards generally accepted in Japan, or Japanese GAAP. 1
Definitions of figures used in this document FY2006 Q1-Q3: Mitsubishi UFJ Financial Group (consolidated) PL Consolidated items FY2005 Q1-Q3: Mitsubishi UFJ Financial Group (consolidated) + UFJ Holdings (consolidated, April-September) (without other adjustments) BS After Dec. 31, 2005: Mitsubishi UFJ Financial Group (consolidated) items Up to September 30, 2005: Mitsubishi Tokyo Financial Group (consolidated) + UFJ Holdings (consolidated) (without other adjustments) PL FY2006 Q1-Q3: Bank of Tokyo-Mitsubishi UFJ (non-consolidated) + Mitsubishi UFJ Sum of non- items Trust and Banking Corporation (non-consolidated) (without other adjustments) consolidated ※ FY2005 : Bank of Tokyo-Mitsubishi UFJ (non-consolidated) + UFJ Bank (non- consolidated, April-December) + Mitsubishi UFJ Trust and Banking Corporation (non- consolidated) + UFJ Trust Bank (non-consolidated, April-September) (without other adjustments) FY2005 Q1-Q3: Bank of Tokyo-Mitsubishi (non-consolidated) + UFJ Bank (non- consolidated) + Mitsubishi UFJ Trust and Banking Corporation (non-consolidated) + UFJ Trust Bank (non-consolidated , April-September) (without other adjustments) FY2004 & FY2004 Q1-Q3: Bank of Tokyo-Mitsubishi (non-consolidated) + UFJ Bank (non-consolidated) + Mitsubishi Trust and Banking Corporation (non-consolidated) + UFJ Trust Bank (non-consolidated) (without other adjustments) BS After Mar. 31, 2006: Bank of Tokyo-Mitsubishi UFJ (non-consolidated) + Mitsubishi items UFJ Trust and Banking Corporation (non-consolidated) (without other adjustments) Up to Sep. 30, 2005: Bank of Tokyo-Mitsubishi (non-consolidated) + UFJ Bank (non- consolidated) + Mitsubishi Trust and Banking Corporation (non-consolidated) + UFJ Trust Bank (non-consolidated) (without other adjustments) * Unless specifically stated otherwise figures do not include the separate subsidiaries. 2
Contents Outline and Strengths of MUFG Medium-term Business Plan (Fiscal 2007) � Outline of MUFG 5 � Key Points of Medium-term Business Plan 15 � Strengths of MUFG 6 � Financial targets 16 � Comprehensive Group Strengths 7 � Breakdown of increase in net operating profit 17 � Building an optimal business portfolio 18 Outline of FY2006 Q1-Q3 Results � Business strategy of 3 customer Business Units � FY2006 Q1-Q3 Results � Retail 9 19 Summary (P/ L) � Corporate 21 � FY2006 Q1-Q3 Results � Trust Assets 25 10 Summary (B/ S) � Capital Policy 27 � Deposit and lending rates 11 � Reduction of investment unit 28 12 � FRL disclosed loans/ � Strengthening internal controls 29 Credit-related costs � Completion of Day 2 and steady 31 � Comparison with other 13 realization of benefits of integration Japanese financial groups 32 � Maintaining and strengthening brand value 3
Outline and Strengths of MUFG Outline of FY2006 Q1-Q3 Results Medium-term Business Plan (Fiscal 2007) 4
Outline of MUFG Market capitalization of Key indices of MUFG * 1 major financial institutions * 4 (Consolidated) (US$ bn) 300 Total assets ¥191.3 tn 271 Loans * 2 ¥87.3 tn 250 234 211 210 Deposits ¥116.2 tn 200 178 176 Capital * 3 ¥13.9 tn 150 (Net qualifying capital) 133 130 BI S ratio * 3 12.17% 86 100 79 No. of employees 50 78,907 0 Cit i BOA HSBC ICBC* 5 AIG JPM CCB* 6 MUFG Mizuho SMFG * 1 As of end Dec. 2006 (No. of employees as of end * 4 As of end Jan. 2007 (quoted from Bloomberg) Sep. 2006) * 5 Industrial and Commercial Bank of China * 2 Bank a/c ＋ Trust a/c * 3 BIS international standard (preliminary basis) * 6 China Construction Bank 5
Strengths of MUFG Mitsubishi UFJ Financial Group Mitsubishi UFJ Financial Group (MUFG) (MUFG) Broad global Comprehensive Strong customer Solid governance Healthy financial network Group strengths base and trusted base Approx. 40 million Core of banking, trust management 891 domestic retail and securities + UNBC 、 Repaid all public funds retail accounts branches * 1 Governance system Tier 1 ratio = 6.88% * 2 Approx. 400,000 investment trusts, credit 420 domestic corporate appropriate for NYSE NPL ratio = 1.33% * 2 domestic corporate cards, consumer finance, branches* 1 listed company etc. customers 410 overseas offices* 1 * 1 As of the end of Sep. 2006, sum of bank, trust bank, securities company and UBOC. * 2 As of the end of Dec. 2006 (Not including internet branches and agents) Tier1 ratio is preliminary base 6
Comprehensive Group strengths Main MUFG companies Mitsubishi UFJ Financial Group Mitsubishi UFJ Financial Group (MUFG) (MUFG) Bank of Mitsubishi UFJ Mitsubishi UFJ Mitsubishi UFJ Bank of Mitsubishi UFJ Mitsubishi UFJ Mitsubishi UFJ Mitsubishi UFJ NI COS * Mitsubishi UFJ NI COS * Tokyo-Mitsubishi UFJ Trust and Banking Lease & Finance * Securities Tokyo-Mitsubishi UFJ Trust and Banking Lease & Finance * Securities Scheduled for Scheduled for Merged Jan 2006 Merged Oct 2005 Merged Oct 2005 merger Apr 2007 merger Apr 2007 Bank of Mitsubishi Mitsubishi Securities UFJ NI COS Diamond Lease Tokyo-Mitsubishi Trust and Banking UFJ Bank UFJ Trust Bank DC Card UFJ Central Leasing UFJ Tsubasa Securities ____________________ * Following the merger, Mitsubishi UFJ NICOS and Mitsubishi UFJ Lease & Finance are scheduled to become a consolidated subsidiary and an equity method affiliate of MUFG. respectively. Other main Group companies Asset Mitsubishi UFJ Asset Management Venture capital Mitsubishi UFJ Capital ／ KOKUSAI Asset Management management ACOM ／ DC Cash One ／ Mobit Consumer finance Factoring Mitsubishi UFJ Factors Research & Mitsubishi UFJ Private banking Mitsubishi UFJ Merrill Lynch PB Securities consulting Research and Consulting Real estate Overseas Mitsubishi UFJ Real Estate Services UnionBanCal 7
Outline and Strengths of MUFG Outline of FY2006 Q1-Q3 Results Medium-term Business Plan (Fiscal 2007) 8
FY 2006 Q1-Q3 Results Summary (P/ L) (Consolidated) � Consolidated gross profits up From Consolidated ¥ bn Statement of I ncome ¥67.1 bn from FY 05 Q1-Q3 FY 05 FY 06 Change Q1-Q3 Q1-Q3 � Despite lower JGB gains, Gross profits Gross profit s * 1 2,620.1 2,687.2 67.1 1 (before credit costs for trust accounts) increased driven by overseas 1,329.0 1,379.8 50.8 Net int erest income 2 businesses, increase in investment trust 778.0 839.9 61.8 Net fees and commissions 3 related revenue and new consolidation 40.9 6.2 (34.7) Net gains on debt securit ies 4 of subsidiaries, etc. * 1 Operat ing expenses 1,388.0 1,535.9 147.8 5 � Operating expenses up ¥147.8 bn Net business profit * 2 1,232.0 1,151.3 (80.7) 6 � Main causes of increase were higher Non-recurring gains (losses) (135.5) (187.2) (51.7) 7 subsidiary expenses (including new Ordinary profit 1,095.6 963.9 (131.6) 8 consolidation of subsidiaries) and Net special gains (losses) 409.4 186.2 (223.2) 9 integration costs, etc. Net income 1,026.4 690.5 (335.8) 10 � Net income ¥690.5 bn Credit -relat ed cost s *3 292.2 6.7 (285.5) 11 Credit -relat ed cost s *3 � Net income declined by ¥335.8 bn 399.5 114.4 (285.0) 12 ( Sum of non-consolidated) mainly due to decrease in gain on Figures in parent hesis refer t o cost s or losses. reversal of allowances * 1 Impact of new subsidiary consolidation : approx. ¥170 bn in Gross profits and approx. ¥90 bn in General and administrative expenses ( approx. figures). � Credit-related costs showed a * 2 Before credit costs for trust accounts and provision for general allowance for loan losses * 3 Credit-related costs = Credit costs for trust accounts (included in gross profits) + gain of ¥6.7 bn Provision for formula allowance for loan losses+ credit-related costs (included in net non-recurring gains and losses) + Reversal of allowance for loan losses. � Declined by ¥285.5 bn 9
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