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2007 Merrill Lynch Japan Conference Mitsubishi UFJ Financial Group Growth Strategy of MUFG September 2007 0 This document contains forward - looking statements in regard to forecasts, targets and plans of Mitsubishi UFJ Financial Group, Inc.


  1. 2007 Merrill Lynch Japan Conference Mitsubishi UFJ Financial Group Growth Strategy of MUFG September 2007 0

  2. 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 kessantanshin, the Form 20F 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

  3. Explanation of figures used in this document Starting FY2005 H2 : Mitsubishi UFJ Financial Group (consolidated) PL Consolidated items Up to FY2005 H1: Mitsubishi Tokyo Financial Group (consolidated) + UFJ Holdings (consolidated) (simple sum without other adjustments) Starting March 31, 2006: Mitsubishi UFJ Financial Group (consolidated) BS items Up to September 30, 2005: Mitsubishi Tokyo Financial Group (consolidated) + UFJ Holdings (consolidated) (simple sum without other adjustments) PL Starting FY2006 H1: Bank of Tokyo-Mitsubishi UFJ (non-consolidated) + Sum of non- Mitsubishi UFJ Trust & Banking Corporation (non-consolidated) (simple sum items consolidated ※ without other adjustments) FY2005 H2: Bank of Tokyo-Mitsubishi UFJ (non-consolidated) + UFJ Bank (non-consolidated, October - December) + Mitsubishi UFJ Trust & Banking Corporation (non-consolidated) (simple sum without other adjustments) Up to FY2005 H1: Bank of Tokyo-Mitsubishi (non-consolidated) + UFJ Bank (non-consolidated) + Mitsubishi Trust & Banking Corporation (non- consolidated) + UFJ Trust Bank (non-consolidated) (simple sum without other adjustments) BS Starting March 31, 2006: Bank of Tokyo-Mitsubishi UFJ (non-consolidated) + Mitsubishi UFJ Trust & Banking Corporation (non-consolidated) (simple sum items without other adjustments) Up to September 30, 2005: Bank of Tokyo-Mitsubishi (non-consolidated) + UFJ Bank (non-consolidated) + Mitsubishi Trust & Banking Corporation (non- consolidated) + UFJ Trust Bank (non-consolidated) (simple sume without other adjustments) * Unless specifically stated otherwise figures do not include separate subsidiaries (UFJ Strategic Partner, UFJ Equity Investments and UFJ Trust Equity). 2

  4. Contents FY 2007 Q1 Results Summary � I mproving customer satisfaction and � FY 2007 Q1 Results Summary (P/ L) 5 strengthening CSR management � Initiatives to improve customer satisfaction 19 � FY 2007 Q1 Results Summary (B/ S) 6 � Key points of enhanced compliance 20 Achievements over past year framework � 21 Group compliance framework � Management issues identified last year 8 Becoming a global top five bank � Strengthening profitability � Steady improvement in deposit/lending spread 9 � Key points of Medium-term Business � 23 Increase in overall customer assets 10 � Plan Internet strategy: Consolidation of kabu.com 11 24 � Global position of MUFG Securities � Business environment � 25 12 Consumer finance strategy: Alliance with JACCS � Growth strategy (1) Strengthen sales � 13 Developing the CIB model: 26 aimed at overall customer assets MUS becoming a wholly owned subsidiary � Growth strategy (2) Consumer finance 27 � 14 Implementing overseas strategy � Growth strategy (3) Internet strategy 28 � Undertaking a balanced capital � Growth Strategy (4) 29 strategy Corporate Investment Banking (CIB) business � 15 Capital policy � Growth strategy (5) Overseas strategy 30 � Enhance shareholder returns 16 � Growth strategy (6) Investment trust 31 � Further implementing smooth management and administration integration � Completion of reorganization at main Group 17 Appendix companies 18 � Completion of Day 2 integration 3

  5. FY 2007 Q1 Results Summary Achievements over past year Becoming a global top five bank 4

  6. FY 2007 Q1 Results Summary (P/ L) (Consolidated) From Consolidated ¥ bn Statement of I ncome FY 06 FY 07 � Consolidated gross profits up Change Q1 Q1 Gross profit s 841.5 866.0 24.4 ¥24.4 bn from FY 06 Q1 1 (before credit costs for trust accounts) 470.7 465.7 (4.9) Net int erest income 2 � Gross profits increased driven mainly by 260.9 265.9 5.0 Net fees and commissions increase in investment trust related 3 revenue and trading revenue (24.8) (14.2) 10.5 Net gains on debt securit ies 4 504.8 523.9 19.0 Operat ing expenses 5 � Operating expenses up ¥19.0 bn 336.6 342.1 5.4 Net business profit * 1 6 � Main causes of increase were increased (14.9) (63.3) (48.4) Non-recurring gains (losses) 7 costs corresponding to the increase in 321.7 293.0 (28.7) Ordinary profit 8 gross profits and additional costs 71.4 14.2 (57.1) Net special gains (losses) 9 related with system integration and Net income 219.5 151.2 (68.2) compliance 10 Credit -relat ed cost s *2 � Net income ¥151.2 bn (11.7) (84.0) (72.3) 11 Credit -relat ed cost s *2 16.1 (44.2) (60.4) (down ¥ 68.2 bn) 12 ( Sum of non-consolidated) Negat ive numbers refer t o cost s or losses. � Credit-related costs showed an * 1 Before credit costs for trust accounts and provision for general allowance for loan losses expense of ¥84.0 bn * 2 Credit-related costs = Credit costs for trust accounts (included in gross profits) + Provision for formula allowance for loan losses+ credit-related costs (included in net (increase of costs by ¥72.3 bn) non-recurring gains and losses) + Reversal of allowance for loan losses. 5

  7. FY 2007 Q1 Results Summary (B/ S) (Consolidated) ¥ bn From Consolidated Balance Sheet End Mar. 07 End Jun. 07 Change 1 85,150.7 86,240.5 1,089.8 Loans (banking +t rust account s) � Loans up ¥1 tn from end of Mar. Loans (banking account s) [ 84,831.9] [ 85,937.7] [ 1,105.8] 2007 driven mainly by Housing loans 2 17,190.1 17,056.0 (134.0) * 3 *1*2 (Sum of non-consolidat ed) increases in overseas lending 3 Overseas loans* 4 14,527.7 15,453.0 925.3 � Deposits flat as retail deposits Invest ment securit ies 4 48,207.6 49,309.4 1,101.7 increased while corporate (Banking account s) deposits decreased 5 Deposit s 118,708.6 118,844.9 136.3 � Continued decrease in FRL FRL disclosed loans disclosed loans, down ¥42.9 bn 6 1,325.8 1,282.9 (42.9) (Sum of non-consolidat ed) from end of Mar. 2007 ( 0.06 ) NPL rat io 7 1.46% 1.39% (Sum of non-consolidat ed) points � NPL ratio down to 1.39% Available-for-sale securit ies - 8 3,384.2 3,553.6 169.4 appraisal differences � Appraisal gains on available- for-sale securities increased End Mar. 07 End Jun. 07 Change (Reference) ¥169.4 bn due to higher stock Capit al rat io 12.54% 12.80% + 0.26points 9 prices (Tier 1 rat io) (7.57%) (7.64%) (+ 0.07points) � BI S ratio 12.80% * 1 Including loans for the construction of rental properties. * 2 Sum of non-consolidated + trust accounts � Tier 1 ratio 7.64% * 3 Loan securitization (FY07 Q1) : approx. ¥ 110.0 bn * 4 Overseas branches + UNBC (UnionBanCal Corporation). 6

  8. FY 2007 Q1 Results Summary Achievements over past year Becoming a global top five bank 7

  9. Management issues identified last year Strengthen profitability (achieve financial targets) � I mplement a balanced capital strategy � Further promote smooth integration � I mprove customer satisfaction and strengthen CSR � management 8

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