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7/29/2019 02-10-13 MUFG Results Q3 Presentation
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I R Present at ion
February, 2013
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1
Consolidated Mitsubishi UFJ Financial Group (consolidated)
Non- Bank of Tokyo-Mitsubishi UFJ (non-consolidated) + Mitsubishi UFJ Trust and Bankingconsolidated Corporation (non-consolidated) (without any adjustments)
Comm ercial bank Bank of Tokyo-Mitsubishi UFJ (consolidated)consolidated
Definitions of figures used in this document
This document cont ains forw ard looking statements in regard t o forecast s, target s andplans of Mit subishi UFJ Financial Group, I nc. (“ MUFG” ) and it s group companies(collect ively, “ t he group” ). These forw ard looking statements are based on inform ationcurrent ly available t o the group and are st ated here on t he basis of t he outlook at t het ime that t his document w as produced. I n addition, in producing t hese statementscert ain assumpt ions (premises) have been uti lized. These st atement s and assumpt ions(premises) are subj ect ive and may prove to be incorrect and m ay not be realized in t hefut ure. Underlying such circumstances are a large number of risks and uncert ainti es.Please see other disclosure and publi c fil i ngs made or w ill be made by MUFG and t heother companies compr ising t he group, including t he latest kessantanshin, financialreport s, Japanese securit ies report s and annual r eport s, for additional inf ormationregarding such r isks and uncert ainti es. The group has no obligat ion or in t ent t o updateany forw ard-looking st atement s cont ained in this document
I n addition, information on companies and ot her ent i t ies outside t he group that isrecorded in t his document has been obt ained fr om publi cly available inform ation andother sources. The accuracy and appropr iateness of t hat i nform at ion has not beenverified by t he group and cannot be guaranteed
The financial information used in t his document w as prepared in accordance w it haccount ing standards generally accepted in Japan, or Japanese GAAP
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Contents
Out line of FY201Out line of FY2012 Q32 Q3 ResultsResults Grow th st rategy of mediumGrow th st rategy of medium-- termtermbusiness planbusiness planz FY2012 Q3 key points
z FY2012 Q3 summary (I ncome statement)
z FY2012 Q3 summary (I ncome statement)supplement ary explanati on
z Out line of result s by business segment
z I nit iatives for FY2012 H2z FY2012 financial t argets
z FY2012 Q3 summary ( Balance sheets)
z Loans/ Deposit s
z Domest ic deposit/ lending r ates
z Domest ic and overseas lending(1) ~ (2)
z Loan assets
z Holdings of investment securit iesz Expenses/ Equit y holdings
z Mit subishi UFJ Secur it ies Holdings
z Consumer finance
4
56
7
89
1011
121315
1617
1819
z Grow th st rategy
z Global st rategy(1)~ (2)
z Asia st rategy(1)~ (3)
z Americas str ategy(1)~ (2)
z EMEA strategyz Transaction bank ing business
z Sales & Trading business
z Proj ect finance
z Global st rategic alliance w it h MorganStanley
z I nt egrated corporate & retail business
z I nvestment product salesz Consumer fi nance
z Global asset m anagement & administr ationstrategy
z Capital policy
z St rengthen equit y capital
z St rategic investment s for sustainablegrowth
z Enhance furt her shareholder returns
212224
27
29303132
33
34
3536
37
3839
40
41
AppendixAppendix
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Out line of FY2012 Q3 Result s
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z Q1-3 net income w as ¥532.4 bn Good progress (approx. 80%) towards our full-
year net income target of ¥670 bn. Subsidiaries’ performance was solid. Difference betweenconsolidated and non-consolidated net incomewas ¥99.1 bn
z Overseas business cont inued togrow strongly The risk-monitored overseas loan ratio
remained low, even under growing lendingbalance
Completed the acquisition of Pacific CapitalBancorp in Dec 12
Announced the acquisition of approx. 20%shares in Vietnam’s Vietinbank (Dec 12)
z Steadily deploying grow thst rategies, w hile tackling diff icult
domest ic business environmentdue to declining int erest rates Declining trend of corporate lending balance
seemed to stop. Solution business such asstructure finance continued to expand steadily
Sales of investment products were performing
well
FY12
Q1-3
532.4Others
(1.8) ACOM
18.1MUN
17.4
BTMU
356.9
MUTB
76.3
MUSHD28.1500.0
0
Breakdow n of net incomeBreakdow n of net income * 1* 1
FY2012 Q3 key point s
UNBC37.2
(¥bn)
*1 The above figures take into consideration the percentageholding in each subsidiary (after-tax basis)
non-
consolidated Consolidated / non-
consolidated difference99.1
Non-Consolidated
433.3
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FY2012 Q3 summary (I ncome statement )supplementary explanat ion
Breakdow n of net int erest incomeBreakdow n of net int erest income Managerial accounting baseManagerial accounting base
Breakdow n of net fees & comm issionsBreakdow n of net fees & comm issions Managerial accounting baseManagerial accounting base
(Consolidated)
UNBC
MU NICOS/ACOM
Market income & others
Yen deposits income
Lending income
10.4
(24.8)
(12.8)
(50.8)
(29.2)
23.7
(55.3)
(68.2)
y-o-y
Total
Up due to increase in residential mortgage and commercial and industrial lending
Loan balance declined due to continued effects of the regulation of total lending limit
Good performance in UNBC. However, down in consumer finance companies
Down mainly due to effects of lower market interest rates on yen-denominated ALM
Retail segment decreased in particular due to lower market interest rates
Declines in Retail and Corporate segments(-18.5) were more than offset by Global
segment(+42.6)
Down due to decreases in Yen deposits income and market income & others, partiallyoffset by increase in lending income
Subsidiaries
Non-consolidated
(¥bn)
Down due to a decrease in guarantee commission of private notes, etc(7.7)Others
Overseas commissions
Investment banking (domestic)
Investment products sales
5.1
7.3
6.8
5.9
12.3
17.4
y-o-y
Total
Up mainly due to an increase in fee income at MUSHD resulting from strong stock markets
Strong performance in the structured finance and trade finance businesses
Strong performance in the syndicated loan and structured finance businesses
Investment trust sales income increased, and income from financial productsintermediation continued to perform well
Good performance in investment banking business in domestic and overseas. Investment
products sales also good
Subsidiaries
Non-consolidated
(¥bn)
1
2
3
4
5
6
7
1
2
3
4
5
6
7
8
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35.6
403.9405.2
40.9
194.8175.7
292.2297.6
236.5 203.3
0
200
400
600
800
1,000
1,200
FY11 Q1-3 FY12 Q1-3
1,000
(¥bn)
1,129.71,155.9
*1 Consolidated net business profits on a managerial accounting base
(Consolidated)
(¥bn)
0
*2 Deposits income is non-consolidated figures
1,155.9
1,129.7
Out line of resul t s by business segment
Net operating profit s byNet operating profit s bysegmentsegment * 1* 1
Breakdow n of changes in netBreakdow n of changes in netoperating profit soperating profit s
Corporate
Retail
Global Marketsand Others
Trust Assets
Global
Corporate
(5.4)
Trust Assets
(5.3)
Global
19.1
GlobalMarkets
and Others
(1.4)
Retail
(33.2)
Sum of above (24.8)of which deposits income (28.2)*2
FY11 Q1-3 FY12 Q1-3
z Global segment increased prof it s by higher lending related income, Retail, Corporate and Trust
Assets segments decreased profit s. Overall net operat ing profi t s decreased by ¥26.2 bn fr omFY11 Q1-3 . How ever, custom er division’s profi t s increased by ¥3.4 bn excluding a decrease indeposit s income due to low er mark et int erest r ates
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I nit iat ives for FY2012 H2
RetailRetail
zAiming t o achieve medium- term business plan t arget s; Key init iati ves in FY2012 H2:
(1) Str engthen sales of investm ent products : Enhance products, strengthen professional support staff for counter sales, rollout of about 2,000 tablet computers at BTMU branches
(2) Strengt hen tot al asset m arketing t hrough int ra-Group collaboration : Address customers’ needs for inheritance/realestate/asset management by strengthening BTMU/MUTB/MUMSS collaboration
(3) I ncrease unsecured consumer loans : Expand sales of BTMU card loans (BANQUIC). ACOM's loan balance is forecasted tobottom-out(4) Prom ote MU NI COS as main card f or cust omers : Increase acquisition of high-use cards and revolving payments on major
allied cards
CorporateCorporate
(1) I ncrease core transact ions: lending, sett lement , forex, et c : Provide high value-added proposals for business
inheritance, rationalization of settlement transaction and overseas expansion(2) I ncrease event finance mandates : Cooperate between BTMU and MUMSS, leverage Morgan Stanley’s global network (3) Str ength en tr ust businesses (securit ies agency, real est ate, corporate pensions) : Deepen BTMU/MUTB collaboration
(4) Discover and support grow ing companies : Apply Group’s diverse financial functions
GlobalGlobal
Trust AssetsTrust Assets
z Please refer to pages 22-29
(1) Expand pension business : Further reinforce BTMU/MUTB collaboration, improve investment performance and developproducts with alliance partners
(2) Expand invest ment t rust business :Increase cooperation with distributors inside and outside of Group, strengthenasset management and product development
(3) I ncrease cooperation w ith all iance partners : Provide new products from strategic partners (Aberdeen, AMP, etc) andexpand sales of existing partner products
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FY2012 f inancial t argets
< Financial Targets>
< Consolidat ed>
< Non-consolidated>
(Note) Total credit costs include gains on loans written-off
(Consolidated/ Non-consolidated)
z No changes t o FY12 net income target fr om ¥670.0 bn
(MUTB revise non-consolidated net income target fr om ¥80 bn to ¥100 bn due t o anexpect ation of ext raordinary gain w it h ret urn of subst i t ut e port ion w hich relates t o pastemployee services of employees’ pension f und)
64.6%
-
79.4%
84.3%
Progressin %
¥160.0 bn¥103.5 bn¥193.4 bn¥90.7 bnTotal credit costs4
¥670.0 bn¥532.4 bn¥690.6 bn¥525.1 bnNet income ( w / o MSnegative goodw ill)3
Full year(Targets)
Q1-3(Results)
Full year(Results)
¥981.3 bn
¥1,471.9 bn
FY11
¥532.4 bn
¥936.4 bn
¥670.0 bn¥815.8 bnNet income2
Q1-3(Results)
1 ¥1,110.0 bn¥1,231.4 bnOrdinary profit s
FY12
63.8%
77.3%
84.1%
77.8%
8
7
¥85.0 bn¥54.3 bn¥134.5 bn¥43.0 bnTotal credit costs
¥560.0 bn¥433.3 bn¥544.9 bn¥380.6 bnNet income
¥853.4 bn
¥1,171.0 bn
¥673.0 bn
¥891.5 bn
¥800.0 bn¥640.7 bnOrdinary profit s6
5 ¥1,145.0 bn¥927.9 bnNet business
profits
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z Loans Increased from both end Mar 12 and end Sep 12,
mainly due to higher domestic corporate loansand overseas loans
zDeposits
Increased from both end Mar 12 and end Sep 12,mainly due to higher individual deposits,overseas and others
zNon perform ing loans ( NPL )
z Net unrealized gains (losses) onsecur it ies available for sale
NPLs increased from end Mar 12 caused bydowngrade of debtor credit ratings of largeborrowers. Remained almost unchanged from endSep 12
Increased from both end Mar 12 and end Sep 12,mainly due to an increase in unrealized gains on
equity securities
z I nvest ment securit ies
Decreased from both end Mar 12 and end Sep 12,mainly due to a decrease in Japanesegovernment bonds, partially offset by an increasein foreign bonds
FY2012 Q3 sum mary (Balance sheets) (Consolidated)
(¥bn) Change Changefrom end Mar 12 from end Sep 12
1 Total assets 224,470.2 5,608.6 5,829.1
2 Loans(Banking+Trust accounts) 87,080.1 2,440.0 2,251.6
3 Loans(Banking accounts) 86,979.5 2,486.8 2,298.3
4 Housing loans*1 16,611.4 (254.6) (80.2)
5 Domestic corporate loans*1 46,333.3 698.6 563.2
6 Overseas loans*2 21,922.8 1,975.6 1,773.6
7 75,403.4 (2,861.2) (1,873.3)
8 Domestic equity securities 4,157.3 (59.2) 432.6
9 Japanese government bonds 44,196.5 (4,366.1) (3,877.3)
10 Foreign bonds
20,094.2 1,322.1 1,422.311 7,875.3 65.8 (239.6)
12 Total liabilities 212,199.9 5,014.1 5,425.7
13 Deposits 126,931.2 2,142.0 1,845.3
14Individual deposits(Domestic branches)
67,828.9 1,984.5 1,347.7
15 20,037.0 1,472.2 1,810.1
16 Total net assets 12,270.2 594.5 403.3
17 FRL disclosed loans*1*3 1,670.6 88.4 19.4
18 NPL ratio*1 1.83% 0.05% (0.03% )
19 1,026.9 194.8 327.3
*1 Non-consolidated+trust accounts
*2 Loans booked in overseas branches, UNBC and BTMU(China)*3 FRL=the Financial Reconstruction Law
Net unrealized gains (losses)
on securities available for sale
End Dec 12
Investment securities(banking accounts)
Receivables under resale agreements and
Receivables under securities borrowing transactions
Payables under repurchase agreements and Payables
under securities lending transactions
Balance sheet
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63.2 64.3 64.8 65.8 67.8
42.8 44.5 40.8 41.9 40.4
16.1 15.2 15.8 16.9 16.9 18.6
66.4
41.6
0
50
100
End Sep 10 End Mar 11 End Sep 11 End Mar 12 End Sep 12 End Dec 12
Individual Corporate, etc Overseas branches & subsidiaries, etc
16.6
46.3
17.121.9
2.8 2.5 2.42.1 2.2 2.2
16.9 16.817.4 17.3 16.6
45.743.5 43.9 43.0 45.6
15.6 16.4 19.9 20.1
0
50
100
End Sep 10 End Mar 11 End Sep 11 End Mar 12 End Sep 12 End Dec 12
Housing loan Domestic corporate Overseas Others
Loans/ Deposit s
z Deposit balance ¥126.9 t(up by ¥1.8 t n from end Sep 12)
< Changes from end Sep 12>
¥1.3 tn
(¥1.1 tn)
¥1.6 tn
¥0.7 tn
z Loan balance ¥87.0(up by ¥2.2 t n from end Sep 12)
< Changes from end Sep 12>
Housing Loan
Domestic corporate
Overseas*1
Excluding impact of foreigncurrency exchange
(¥0.0 tn)
¥0.5 tn
¥1.7 tn
¥0.3 tn
*2 Sum of banking and trust accounts
*1 Overseas branches + UNBC + BTMU (China)
<Loans (Period end balance)*2>
<Deposits (Period end balance)>
79.384.6
80.1 79.6
87.084.8
124.1122.2 124.7121.5
126.9125.0
(¥tn)
(¥tn)
(Consolidated)
Individual
Corporate, etc.
Overseas and others
Excluding impact of foreigncurrency exchange
*1
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2010
Apr
Domest ic and overseas lending(1)
30
31
32
33
34
35
36
37
38
39
40
41
42
43
0.5%
0.6%
0.7%
0.8%
0.9%
1.0%
Average lending balance
Lending spread
10
11
12
13
14
15
16
17
18
19
0.7%
0.8%
0.9%
1.0%
1.1%
1.2%
Average lending balance
Lending spread
(¥tn) (¥tn)
(Note) Exchange rates: Those adopted in our business plan ($/¥=83, etc)
2011 Apr
2012
Apr
z Declining t rend of domest ic corporate lending balance seemed to st op. Overseascorporat e lending expanded constant ly
2011 Apr
2010 Apr
2012
Apr
Domest ic corporate lending/ SpreadDomest ic corporate lending/ Spread* 1* 1 Overseas corporat e lending/ Spread (Excl. UOverseas corporat e lending/ Spread (Excl. UNNBBCC))
*1 Excl. Lending to government
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0
100
200
300
FY10 H1 FY10 H2 FY11 H1 FY11 H2 FY12 H1
0
200
400
600
FY10 H1 FY10 H2 FY11 H1 FY11 H2 FY12 H1
Net int erest incomeNet int erest income* 1* 1 Lending incomeLending income* 2* 2
Deposits income
(¥bn)
Lending income
Corporate
Global
RetailMarket income, etc
z Although net int erest income w as on a decl ining t rend, grow th in lending income from Global
segment more than off set low er lending income fr om Corporate and Retail segmentsz Total average lending balance of dom est ic corporate and overseas Japanese corporat e is on an
increasing t rend
Average lending balanceAverage lending balance* 3 * 4* 3 * 4
FY10 H1 FY10 H2 FY11 H1 FY11 H2 FY12 H1
Domesticcorporate
Overseas Japanesecorporate
Gross prof it sGross prof it s* 3 * 4* 3 * 4
FY10 H1 FY10 H2 FY11 H1 FY11 H2 FY12 H10
40400
0
300
500
*4 Commercial bank consolidated + Trust bank consolidated
Domest ic and overseas lending(2)
*1 Non-consolidated, managerial accounting base *2 Non-consolidated, customer division, managerial accounting base
(Note) Exchange rates: Those adopted in our business plan ($/¥=83, etc)
(¥bn)
*3 Domestic corporate + Overseas Japanese corporate, managerial accounting base(¥tn) (¥bn)
Overseas Japanesecorporate
Domesticcorporate
35
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(354.1)
(90.7)
(201.5)
(103.5)
(193.4)
(400)
(200)
0
FY10 FY11 FY12
Consolidated
(43.0)(44.2)
(54.3)
(174.2)(134.5)
(400)
(200)
0
FY10 FY11 FY12
Non-consolidated
Loan assets
Balance of FRL disclosed loansBalance of FRL disclosed loans (non(non-- consolidated)consolidated) Total credit cost sTotal credit cost s 22
0.54
0.27
0.15
0.11
0.110.24
0.190.13
0.100.11 0.10
0.55 0.540.56 0.38
1.32
0.92
0.300.55
0.29
1.010.990.910.74
0.840.65
1.40
0.74
0.64
0.55
1.83%
1.87%1.77%1.68%
3.33%
2.07%
1.46%
1.15%1.24%
1.50%
1.671.651.581.43
3.00
1.82
1.32
1.051.18
1.34
0.0
1.0
2.0
3.0
4.0
End
Mar 05
End
Mar 06
End
Mar 07
End
Mar 08
End
Mar 09
End
Mar 10
End
Mar 11
End
Mar 12
End
Sep 12
End
Dec 12
Bankrupt/De factoBankrupt
Special attention
NPL ratio*1
Doubtful
TotalLoans
*1 Non performing loan / Total loans
87.2 86.2 89.2 91.9 95.2 89.6 85.0 88.9 88.2 91.1
(Negative figure represents costs)(¥tn) (¥bn)
Q1-3 Full year Q1-3 Full year Q1-3
Non-consolidated
(¥tn)
*2 Figures included gains on loans written-off
zNPLs almost f lat from end Sep 12, NPL ratio w as 1.83%
zTotal credit cost s increased by ¥12.8 bn from FY11 Q1-3 t o ¥103.5 bn on consolidatedbasis. ¥54.3 bn on non-consolidated basis
(Consolidated/ Non-consolidated)
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15.0
10.512.1
15.7 14.3 14.6
19.7 27.8 27.025.2 27.3 26.7
2.72.2
3.0 4.9 4.5
1.72.5
1.4 2.9 1.6 1.9
3.9
0
10
20
30
40
50
60
End Mar
10
End Sep
10
End Mar
11
End Sep
11
End Mar
12
End Sep
12
within 1 year 1 year to 5 years5 years to 10 years over 10 years
2.53.1 3.1 2.9 3.1 3.0 3.0
0
1
2
3
4
5
End Mar10
End Sep10
End Mar11
End Sep11
End Mar12
End Sep12
End Dec12
*2 Non-consolidated
Holdings of investment secur it ies
Breakdow n ofBreakdow n of otherother securitiessecurities(w i th(w i th market value)market value)
JGB Durat ionJGB Durat ion ** 22
Redempt ion schedule ofRedempt ion schedule of JGBJGB* 1* 1
(Consolidated)
*1 Other securities with maturities and debt securities being held tomaturity. Non-consolidated
End Dec 12 TOPIX:859.80, JGB(10yrs):0.79%
(¥tn)
(¥bn)
z Maint ained high level of unrealized gains. Unrealized gains on domest ic
and foreign equity securit ies increased r eflect ing st rong stock perform ance
(year)
End Dec 12Change from
end Sep 12 End Dec 12Change from
end Sep 12
1 Total 72,904.8 (1,189.2) 1,026.9 327.3
2 3,296.7 426.4 419.8 358.2
3 47,220.0 (3,642.1) 210.2 (53.6)
4Government
bonds43,946.6 (3,597.3) 151.9 (49.0)
5 22,388.1 2,026.4 396.8 22.7
6Foreign equity
securities186.6 36.3 65.3 33.5
7Foreign
bonds19,531.9 1,571.2 312.2 (18.2)
8 Others 2,669.5 418.8 19.2 7.4
Others
Balance Unrealized gains(losses)
Domestic equity
securities
Domestic bonds
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1.521.471.51
1.561.571.57
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
1.40%
1.60%
1.80%
2.00%
2.20%
2.40%
2.60%
2.80%
3.00%
0.920.880.900.970.960.88
0
1
2
3
FY07
Q1-3
FY08
Q1-3
FY09
Q1-3
FY10
Q1-3
FY11
Q1-3
FY12
Q1-3
FY07Q1-3
(¥tn)
61.5%
58.5% 60.4%
55.9%
50.2% 48.7%
58.1%
63.0%
Expenses/ Equit y holdingsz Expenses increased due to dist ribut ion of resources to strengthen some business areas, such as
overseas business, w hile maint ain corporate-w ide cost reduct ion effort s. Consolidated expenserat io w as 56.9% , non-consolidated expense ratio w as 50.7%
z Sold equity holdings by approx. ¥25.0 bn in FY12 Q1-3. Cont inue to reduce equity holdings tomin im ize st ock pr ice fluctuation r isk on capit al, w hile considering mark et condit ions
56.9%
50.7%
0
1
2
3
4
5
6
7
8
9
10
End Mar
02
End Mar
08
End Mar
09
End Mar
10
End Mar
11
End Mar
12
End Sep
12
End Dec
12
9.39
4.53
4.003.70
3.373.13
59.1% 54.9% 38.6% 35.3% 32.1% 29.5%
2.92
(¥tn)
55.3% 55.6%
G&A expensesG&A expenses Equit y holdingsEquit y holdings
(Consolidated/ Non-consolidated)
G&A expenses (consolidated)G&A expenses (non-consolidated)
Expense ratio*1 (non-consolidated)
Expense ratio*1 (consolidated)
*1 Expense ratio = G&A expenses / Gross profits (before credit costs for trust accounts)
*2 Acquisition price (after impairment) of domestic equity securities in the category of “othersecurities” with market value (non-consolidated)
*3 Tier 1 Capital (non-consolidated)
Ratio of equity holdings*2 to Tier 1 capital*3
FY08Q1-3
FY09
Q1-3
FY10
Q1-3
FY11
Q1-3
FY12
Q1-3
2.99
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18
Commission received
Net trading income
Net interest income, etc
Non-personnel expenses
Personnel expenses
Ordinary income
3.8 16.8
105.4
108.5
19.146.3
(73.6)(69.8)
(107.7) (102.3)
73.758.7
(200)
(100)
0
100
200
Mit subishi UFJ Secur it ies Holdings
ResultsResults of MUMSSof MUMSSResult s of MUSHDResult s of MUSHD
24.0
16.3
27.1
32.7
(1.5)
31.1
Change fromFY11 Q1-3
46.338.1Ordinary income4
FY11 FY12Q1-3
1 Net operating revenue*2 238.5 199.1
2Selling, general andadministrative expenses
240.1 175.9
3 Operating income (1.5) 23.1
5 Extraordinary income (13.6) 2.2
6 Net income 16.5 28.1
*1 Mitsubishi UFJ Securities Holdings Co., Ltd.*2 Operating revenue minus financial expenses
56.430.7
30.5
(3.6)
26.8
Change fromFY11 Q1-3
25.12.7Ordinary income4
FY11 FY12Q1-3
1 Net operating revenue*2 170.1 145.8
2Selling, general andadministrative expenses
169.6 122.2
3 Operating income 0.4 23.6
5 Net income (16.7) 31.1
*3 Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
(¥bn)
< MUMSS non-consolidated quart erly base>
(¥bn)
(¥bn)
< MUMSS* 3
non-consolidated>
12.2
10.8
10.4
40.6
51.0
Q3
13.1
10.4
10.0
41.5
51.6
Q2
FY12
5.7
3.9
3.1
40.0
43.1
Q1
7.3(1.6)0.7(5.9)Operating income3
Q4Q3Q2Q1
Net income
Ordinary income
Selling, general andadministrative expenses
Net operating revenue*2
8.4(22.1)2.2(5.4)5
8.3(1.1)1.1(5.5)4
43.739.242.943.62
51.037.543.737.61
FY11
Net operating revenue
FY11 Q1-3 FY12 Q1-3
(¥bn)
< MUSHD* 1
consolidated>
z FY12 Q1-3 net income ¥28.1 bn as commission income increased, t rading income expanded
driven by client t ransaction flow and G&A expenses cont ainedzMUMSS (non-consolidated) prof it s up st rongly due t o good investment t rusts sales and t rading
performance
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31.9%*2
703.8
564.7
45.347.047.0
0.0
28.153.5
98.6145.6
FY12Q1-3
698.0
47.2(11.8)34.7Provision for bad debts4
Underlying earnings(5+6)
31.6%
779.9
483.2
21.479.630.8
48.8
71.8
179.5210.4
FY11
41.3(1.3)
570.098.1Guaranteed receivables
(Non-consolidated)
9
(94.7)Unsecured consumer loans(Non-consolidated)10
740.5
41.3
0.0
74.1
145.6186.9
FY12(plan)
0.8 %*2
3.2
(1.3)
0.0
(0.0)
(13.3)(14.6)
y-o-y
Operating income6
Net income8
G&A expenses3
Provision for loss oninterest repayment
5
Share of loans*111
Operating expenses
Operating revenue
21
Resul t s of MU NI COSResul t s of MU NI COS
z Number of requests for in t erest repayment declin ing at bot h MU NI COS and ACOM
z Both companies post ed prof i ts in FY12 Q1-3
20.5
19.5
19.2
19.2
0.0
9.1
171.7
180.8121.3
200.1
FY12Q1-3
(1.9)
(3.7)
(3.7)
(3.7)
0.0
(11.5)
3.3
(8.1)1.9
(11.9)
y-o-y
31.028.7Net income10
30.429.5Ordinary profits9
29.929.0Underlying
earnings(6+7)
29.929.0Operating income7
8
0.00.0Repayment expenses6
14.623.8Credit related costs5
229.8228.3G&A expenses4
244.5252.2Operating expenses3-160.8Card shopping2
274.5281.2Operating revenue1
FY11FY12(plan)
(¥bn)(¥bn)
Result s of ACOMResult s of ACOM
Consumer f inance
*1 ACOM unsecured consumer loan balance (non-consolidated) / Consumerfinance industry loan balance (Source) Japan Financial Services Association
*2 As of end Nov 12
20
40
60
80
100
120
20
40
60
80
100
120< Requests f or i nt erest repayment * 3>
Q2 Q4FY11Q1 Q2 Q3
FY12Q1Q4 Q2Q3Q2
FY10Q1Q4Q3
FY09Q1
< Requests f or i nt erest repayment * 3>
Q2 Q4FY11Q1 Q2 Q3
FY12Q1Q4 Q2Q3Q2
FY10Q1Q4Q3
FY09Q1
*3 Requests for interest repayment in FY09 Q1 = 100
Q3 Q3
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Grow th st rategy of medium- t erm
business plan
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21
Grow th st rategy
z Above ment ioned business st rat egies, t he businesses below are the
principal earnings drivers and aims for sustainable grow th
z Global st rategy by regions including emerging m arket sAsia, Americas, EMEA
z Transact ion banking business
z Sales & Trading business
z Proj ect finance
z Global st rategic alliance w it h Morgan Stanley
z I nt egrated corporate & retail business
z
I nvestment product salesz Consumer finance
z Global asset m anagement & administ rat ion st rategy
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1.4 1.4 1.6 1.8 1.7 1.71.2 1.4 1.5 1.7 1.5 1.8
3.8 4.2
5.2 5.6 5.3 4.9 5.1 5.4
4.03.73.73.5
0.0
5.0
10.0
15.0
20.0
12.112.111.3
12.2 12.4
Up 5.2%
0.81%0.81%0.95%
1.31%
2.01%
1.92%1.84%1.65%
0.08%0.08%0.06%0.21%
0%
1%
2%
End Mar 10 End Mar 11 End Mar 12 End Sep 12
4.0 3.7 3.6 4.1 4.8 5.0
3.3 2.9 2.8 3.2 3.6 4.1
7.18.7
4.0 3.9 4.04.0
4.34.5
5.4 5.8 6.28.1
0.0
5.0
10.0
15.0
20.0
25.0
30.0
16.616.7 16.418.4
20.7
Up 7.4%
39.6 38.0 42.8 44.6 51.6 51.544.8 43.3 47.9 49.4 55.4 59.0
82.3102.6
121.9 132.5139.7 139.5
129.6 136.9
94.574.167.163.5
0
100
200
300
400
(¥tn)
Asia
AmericasEMEA
(¥tn)
Domestic & overseas
(¥bn)
Asia
Americas
EMEA
Global st rategy(1)
UNBC
UNBC
z Solid increase in gross prof it sz Expanded ou r lending in t he Asia, Americas and EMEA. Custom er deposits also grow ing w ell.
I n addition, due t o our st rict credit controls, the risk-m onitored overseas loans ratio remainsat a low level
Americas
Asia
UNBC
EMEA
Gross profit s by regionsGross profit s by regions* 1 * 2* 1 * 2
280.9269.8304.5 315.8
331.1
Average lAverage lendingending balance by regionsbalance by regions* 2* 2
AverageAverage depositsdeposits balance by regionsbalance by regions* 2* 2
Overseas
Asia
RiskRisk --monit ored overseas loan rat iomonit ored overseas loan rat io * 3* 3
350.0
22.3
13.0
*1 Excl. other business gross profitsand before elimination of duplication
*2 Exchange rates: Those adopted in our business plan ($/¥=83, etc)
FY09H2
FY10H1
FY10H2
FY11H1
FY11H2
FY12H1
FY09H2
FY10H1
FY10H2
FY11H1
FY11H2
FY12H1
FY09H2
FY10H1
FY10H2
FY11H1
FY11H2
FY12H1
*3 Non-consolidated
(Commercial bank Consolidated)
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2323
Global st rategy(2)
z I mplement grow t h st rategies in each region w orldw ide. Expand global
netw ork t hrough str ategic invest ments and all iancesU.S.A
z UNBC completed acquisition of PacificCapital Bancorp (Dec 12). For details
see P28
Canada
z Increased capital in Canada subsidiary(Aug 12)
Russia
z Increased capital in Russia subsidiary(Jun 12)
z Opened Vladivostok sub-branch (Sep 12)
Ind ia
z Opened Neemrana branch(Nov 12, our 4th location in India)
z Preparing to open Bangalore branch(already approved)
Turkey
z Decided to establish an subsidiary in
Turkey (to open in 13)z Business alliance with major Turkish
bank Isbank (Oct 12)
Vietnam
z Signed agreement to acquire approx.20%shares in state-owned VietinBank andform a capital and business alliance (Dec12). Scheduled to become an equitymethod affiliate
<Strategic implications> Make use of VietinBank’s top class
Vietnam branch network (1,274branches and sub-branches*1) tostrengthen our settlement and otherservices to local Japanese companiesand develop BTMU business
Participate in high-growth economy of Vietnam
Provide BTMU’s risk managementexpertise, etc to develop theiroperations and management
<VietinBank profile>
Second in total assets in Vietnam:
approx. ¥1.88 tn*1
Achieving high growth consistently asone of the most healthiest banks in Vietnam
Lending balance: approx. ¥1.2 tn*1
- CAGR (07-11) 30.2%
Net income: approx. ¥25.3 bn*1
- CAGR (07-11) 52.7%.
*1 As of end Dec 11, ¥1=245.1VND
Australia
z Made AMP, one of Australia’s “big 5” financial institutions, an equity methodaffiliate (Mar 12)
z Opened Perth branch (Apr 12, our 3rd
location in Australia)z Acquired Australian Infrastructure
Advisory Team from RBS and established Australian Structured Finance Office(Mar 12) UAE
z Upgraded Dubai office to branch statusto strengthen supervisory functions in
the Middle East (Oct 12)
Lat in Ameri caz Started marketing activities at Bogota
and Lima rep.offices (Mar 12)
z Business alliance with major Mexicanbank Banorte (Aug 12)
Malaysia
z Opened Penang branch (Jul 12)
Myanmar
z Business alliance with a leading private
bank Co-operative Bank (Dec 12)
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24
Oceania
9%
Korea
10%
ASEAN
39%
Greater
China34%
India
8%CIB
Loans
Fees andcommissions
Deposits
Forex
z Solid increase in gross prof it s w it h bot h Japanese and non-Japanese. Grow ing in
CI B and forex income in addit ion t o income from loans. Ensuring a good revenuebalance in each region
z Aiming t o increase gross profit s for FY14 by 50% from FY11
23.6 24.4 26.1 29.535.6 39.2
3.7 4.26.1 8.0
8.78.9
13.0
13.5
14.513.6
9.910.6
12.111.9
13.514.6
10.511.1
14.016.9
18.520.5
13.6
11.6
0
20
40
60
80
100
(¥bn)
Asia st rategy(1)
Gross prof it s by regionsGross prof it s by regionsCustomer business gross prof it sCustomer business gross prof it s
FY09
H2
FY10
H1
FY10
H2
FY11
H1
FY11
H2
FY12
H1
58.2%58.4% 58.7%54.1%
54.5% 57.0%Of which non-
Japaneseprofits ratio
(Commercial bank Consolidated)
(Note) Exchange rates: Those adopted in our business plan ($/¥=83, etc)
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China Hong Kong Aust ral ia Singapore
0
2
4
6
8
10
12
14
End Mar
11
End Sep
11
End Mar
12
End Sep
12
(US$bn)
0
2
4
6
8
10
12
14
End Mar
11
End Sep
11
End Mar
12
End Sep
12
(US$bn)
0
2
4
6
8
10
12
14
End Mar
11
End Sep
11
End Mar
12
End Sep
12
(US$bn)
0
2
4
6
8
10
12
14
End Mar
11
End Sep
11
End Mar
12
End Sep
12
(US$bn)
6.8 6.9
JapaneseNon-Japanese
11.3
8.58.0
12.7
6.57.5 7.87.6
14.5
10.5
Ind ia Thailand I ndonesia Korea
0
2
4
6
8
10
12
14
End Mar
11
End Sep
11
End Mar
12
End Sep
12
(US$bn)
0
2
4
6
8
10
12
14
End Mar
11
End Sep
11
End Mar
12
End Sep
12
(US$bn)
0
2
4
6
8
10
12
14
End Mar
11
End Sep
11
End Mar
12
End Sep
12
(US$bn)
0
2
4
6
8
10
12
14
End Mar
11
End Sep
11
End Mar
12
End Sep
12
(US$bn)
6.06.7 7.0
5.5 5.96.8
2.9 3.3 3.6
7.4
13.7
11.4
8.1
7.5 7.9
3.74.04.7
5.1 6.1
Asia st rategy(2) (Commercial bank Consolidated)
z I ncreased total lending balance t hrough adopt ing st rategy t o the charact erist ics of
each market
(Note) Loans outstanding on consolidated basis, counted by the nationality of each borrower for internal management purpose. Excl. Financial institution
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2626
Asia st rategy(3)z Upgrade the Asian business model and become established as t he leading foreign bank
z I mpr ove products and services w hile st rengt hening market ing w it hin and beyond t he regiont hrough BTMU/ MUTB/ MUSHD; im prove regional governance by bringing Head Off ice functionst o the Asian front l ine
43.0
114.1
61.5
12.519.2
57.7
23.5
5.6
0
20
40
60
80
100
120
BTMU HSBC Citi JP Morgan
Greater China ( China/ HK/ Taiwan)
z Through steps such as obtaining a first foreign bank certification for each of new operations, establish positionas a first class foreign bank. Obtained a first Japanese
bank certification of QFII custodianz Strengthen loan and settlement business, etc. by
cooperating with branches (20 locations) within theregion. Upgrade RMB-related business
z Aim to expand network centered on China
Korea
z No.2 in net business profits after HSBC among localbranches of foreign banks*, as a result of closerelationships with Korean corporations
z Strengthen marketing and aim for core bank status,assisting Korean corporations with globalization. (Setup Global Korean Business Office)
z Strengthen securitization, ECA finance, projectfinance and capital market business
Ind ia
z Strengthen loan and cross-selling business to major non-Japanese corporations
z Achieve critical mass in S&T business by bringing it under joint control with Global Markets
z Further strengthening largest network of any Japanesebank by opening new branches (now 4 branches)
I ndonesia
z Having opened the branch more than 40 years ago,solid business base centered on Japanesecorporations. Top lender among foreign banks
z Capture more infrastructure/resource finance andM&A projects. Strengthen business with financialinstitutions and syndicated loans
z Strengthen local group synergies (CIMB, etc)
Australia
z Strengthen project finance and resource/infrastructure-related loans to large non-Japaneseorganizations (Setting up the Perth branch to make 3branches in Australia and Australian StructuredFinance Office)
z Alliance with AMP, one of the Australian “big 5”
financial institutions
Comparison w ith foreign banks`Comparison w ith foreign banks`subsidiaries in China (20 11)subsidiaries in China (20 11)
Net business profits
Gross profits(¥bn)
(Source) Company disclosures Exchange rates: RMB/¥=14.03
* Japanese banks: Apr 11 - Mar 12, other foreign banks: Jan 11 - Dec 11
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27
zOrganic Grow th Accelerate growth with expanding customer
base and MUFG group collaboration
Achieve strong foundation with supportfunctions, such as HR/IT/Risk management
z Organizat ional Synergy bet w een
BTMU/ UB Maximize opportunities with realizing revenue
and cost synergies
z Non-Organic Growth
Unlock strategic potential. Actively pursue high
value acquisitionz Latin America
Business promotion and enhancement based oncountry specific strategies by allocatingnecessary resources and enhancing structures.Gross profits FY12 H1 of Latin America and
others ¥9.9 bn, up ¥2.9 bn from FY11 H1
10.8 8.8 7.9 9.0 10.713.5
0.70.8 0.8 0.9
0.91.68.4
11.914.4 13.91.6 1.4 1.8
2.1
2.02.7
19.620.5
22.923.7
24.0
25.2
10.211.2
0
20
40
60
Key point s of AKey point s of Americasmericas strategiesstrategiesCustom er business gross prof it sCustom er business gross prof it s (Excl.(Excl. UNBCUNBC))
Americas st rategy(1)
(¥bn)
62.0%61.8% 62.4%66.7% 66.5% 65.0%
(Commercial bank Consolidated)
z Americas gross profit s (incl. UNBC) is approx. 60% of overseas revenues. Latin America business
growing
z Aiming t o increase gross profi t s for FY14 by 30% from FY11
z Aspire to achieve a premier position among U.S. banks by becoming one of t he top 10 banking groupsas measured by size and profi t ability
Of which
non-Japaneseprofitsratio*1
FY09
H2
FY10
H1
FY10
H2
FY11
H1
FY11
H2
FY12
H1
CIB
Loans
Fees and
commissions
Deposits
Forex
*1 Excl. Latin America and others (Note) Exchange rates: Those adopted in our business plan ($/¥=83, etc)
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28
44.8 43.3 47.9 49.4 55.4 59.0
121.9 132.5 139.7 139.5 129.6 136.9
0
100
200
123
(5)
174
715
889
Q4
629
25
855
2,566
3,421
124
45
205
638
843
Q3FY11
187
(14)
235
599
834
Q2
195
(1)
241
614
855
Q1
FY12
778
(202)
879
2,415
3,294
573
182
975
2,372
3,347
FY10
Net income5
Provision for allowancefor credit losses*14
Net business profits3
Non-interest expenses2
Gross profits1
AAcquisit ion ofcquisit ion of Pacif ic Capit al BancorpPacif ic Capit al Bancorp
Gross prof it s in AmericasGross prof it s in Americas* 2* 2
UUNNBBC business perf ormanceC business perf ormance
z Complet ion of acquisit ion in Dec 12
z St rategic implications
Acquisition of a leading bank in Santa Barbara
Expansion of retail business and branch network
Provision of community-based banking services tocustomers in Santa Barbara and California’s CentralCoast area
Provision of products and services in commercial andsmall business lending along with wealth management;expansion of revenue through enhancement of cross-selling and other approaches
z Assets and deposit s
Assets: US$ 5.9bn, Deposits: US$ 4.6bn
(US$mm)
Santa Barbara
Los AngelesSan Diego
San Francisco
Sacramento
Union Bank Santa Barbara Bank & TrustCA
Americas st rategy(2)
*1 Negative figures are reversal
z UNBC perform ance w as w ell. Loans and deposits increased steadily
z Act ively consider high added value acquisit ions using st rong equit y capitalbase
(¥bn)
BTMU
UNBC
166.7175.8
187.6 188.9 185.0 195.9
FY09
H2
FY10
H1
FY10
H2
FY11
H1
FY11
H2
FY12
H1
(Commercial bank Consolidated)
(Note) Exchange rates: Those adopted in our business plan ($/¥=83, etc)
*2 Excl. other business gross profits and before eliminationof duplication. Managerial accounting base
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13.1 11.5 10.4 11.9 12.5 15.0
1.1 1.2 1.52.0 2.2
1.89.7 9.1 13.8 10.6
2.93.4 3.7 3.7
4.1 4.3
14.114.8
20.322.4
25.8 27.7
10.910.0
0
20
40
60
Key point s of EMEA st rat egyKey point s of EMEA st rat egyCustomer business gross prof it sCustomer business gross prof it s
EMEA st rategy
(¥bn)
80.0%78.4% 73.2%78.9% 77.4% 77.9%
z Based on individual st rat egies for each region, customer segment and operat ing segment ,
prom ot ing cross selling to become a core bank of non-Japanese customers. CI B income grow ingdue t o successfu l cooperat ion w it h overseas securit ies subsidiaries
z Aiming t o increase gross profit s for FY14 by 20% from FY11
FY09
H2
FY10
H1
FY10
H2
FY11
H1
FY11
H2
FY12
H1
Of whichnon-Japaneseprofitsratio*1
*1 Incl. Middle East
CIB
Loans
Fees and
commissions
Deposits
Forex
(Commercial bank Consolidated)
z Expand business w hile taking int o account
European debt crisis, st atus of competit orsand other factors
Region: Core Europe, Middle East resource-rich countries,emerging countries (Russia, Turkey, South Africa, etc)
Customers: Quality non-Japanese major corporations, localentities of Japanese
Operations: CIB (project finance, syndicated loans, DCM incooperation between BTMU and securities subsidiaries,etc), transaction banking
z Enhance netw ork in grow th regions
Increased capital at Russian subsidiary, establishedrepresentative at Vladivostok
Upgraded Dubai office to branch status to strengthensupervisory functions in the Middle East
Decided to establish a subsidiary in Turkey and signedcooperation agreement with major Turkish bank Turkiye IsBankasi A.S.
z St rengthen operating base such as monit oringsystem of count ry condit ions and risk managementt o support continuous grow th
(Note) Exchange rates: Those adopted in our business plan ($/¥=83, etc)
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3030
(¥bn)
300
Americas
200
100
EMEA Asia
Japan
Full year Q1-3 Full year Q1-3 Q1-3
z Develop a business target ing t he entir e
supply chain part icularly in Asia Make the greatest possible use of overseas network,
the best among Japanese banks, and our strongJapanese customer base to effectively provide solutionscombining trade finance and cash management
z Substant ially increase system investment
and development personnel, expand lineupof str ategic products and services
Expand functionality of existing settlement-relatedsystems products such as BizSTATION and GCMS Plus. Also expand strategic products and services, such aselectric trade operation management (TSU*3) andcentralized payment operation management system
(GPH*4
)z St rengt hen new regions and businesses
Intensify business promotion for multinationalcompanies and local Asian companies while refiningapproach to project-related business such as accountbanking business
St rategies to st rengt hen the businessSt rat egies t o st rengt hen the businessGross prof it sGross prof it s (Excl. UNBC)(Excl. UNBC) * 2* 2
z Transact ion bank ing business* 1 gross prof it s increased mainly in overseas. CMS cont racts atoverseas also expanded steadily
z Aiming t o increase revenue for FY14 by ¥100 bn fr om FY11*1 Collectively refers to services capturing commercial flows of customers such as
deposits, settlements and trade finance
Transact ion banking business
*3 TSU: Trade Services Utility *4 GPH: Global Payment Hub
Overseas CMS cont ractsOverseas CMS cont racts (Excl. UNBC)(Excl. UNBC)
0
Overseas up
approx. 12%
*2 Managerial accounting base. Exchange rates:
Those adopted in our business plan ($/¥=83, etc)
0
5
10
15
FY08 FY09 FY10 FY11 FY12 Q1-3
(Thousand)
(Commercial bank Consolidat ed)
FY10 FY11 FY12
S l T di b i
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0
50
100
150
200
250
Sales
Trading
Sales & Trading businessz St rengthen flow t rading as a comm ercial bank, build on customer base
z Correspond t o t he diversifying and globalizing needs of customers by progressinghigh value-added proposals and act ively l inking business bet w een global regions.Maxim ize profit from global interbank f low t rading business
z Aiming t o increase gross profi t s for FY14 by 30% from FY11
(¥bn)
Gross prof it sGross prof it s
(BTMU consolidat ed(BTMU consolidated, excl U, excl UNNBBC)C)11
St rat egies t o st rengt hen the businessSt rat egies t o st rengt hen the business
z Link act ively betw een global regions andpursue cross-sell opport unit ies
Strengthen approach towards cross-border businessand event finance
z Expand emerging currencies business
Further develop RMB business, increase product
providing capabilities and expand business in Latin America
z Advance interbank business
Emphasize effort towards 3 focusing segments(Overseas asset Managers, Asian regional banks,Central banks and Governmental funds)
z I ncrease off ices co-managed w it h Global
Business segment and Global Markets segment Established joint management offices in BTMU China,
Mumbai branch, Bangkok branch, Sydney branch,Jakarta branch and BTMU Malaysia
z Recruit skil led personnel
z Adapt t o regulations and st rengt hen legal
compliance*1 Sum of customer division and global markets segment
H1H1H1Full Year Full Year
FY12FY10 FY11
(Note) Exchange rates: Those adopted in our new business plan ($/¥=83, etc)
P j t f i
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Project f inancez Ranked No.1 in 2012 global rankings. Ranked No.1 in Americas for 3 consecutive years, rising
our rank ing in EMEA and Asia Pacif icz I ncrease personnel and t ake other st eps t o est ablish stat us as a leading bank. Solut ion business
centered on project f inance, aiming to increase gross profi t s for FY14 by 40% from FY11
Europe
Asia Pacific Americas
Middle East, Africa
¥ 2.4 t n
68
32
96
#
<Global proj ect f inance league t able (Jan-Dec 12)>
37.58SMFG3
110.95State Bank of India2
211.62MUFG1
Rank Jan-Dec
11
Origination Volumes(US$ bn)
Mandated ArrangersRank
(Source) Thomson Reuters
5.4%22.5%12 Asia Pacific
3.2%63.0%9EMEA
11.5%112.3%1 Americas
ShareRank ShareRank
Jan-Dec 12Jan-Dec 11
<By regions>
Global presenceGlobal presence
(Source) Thomson Reuters
Proj ect finance loan port folioProj ect finance loan port folio * 1* 1
*1 Commercial bank (consolidated, excl. UNBC). As of end Sep 12
St rat egies t o st rengt hen the businessSt rat egies t o st rengt hen the business
z Global approach: st rengt hening our platform in
the infrastructure sector, renewable energybusiness and others on a global basis
z I nit iati ves in Japan: enhancing our support s inrelati on t o Japanese companies’ acquisiti on ofresource interests, inf rastructur e export s t o Asia,and domest ic reconstruction relatedPFI / renewable energy
z St rengthening marketing str ucture thr ough staffincreases
Gl b l t t i lli it h M St l
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Result s of cooperat ionResult s of cooperat ionMorgan St anley perform anceMorgan St anley perform ance
*1 Calculated by MUFG based on Morgan Stanley public data
Global st rategic alliance w it h Morgan Stanley
(US$mm)
Deal value amount. Any Japanese involvement completed (Excl. Real estate)(Source) Thomson Reuters
(117)
(19)
4,917
515
25,597
30,514
26,112
481
507
1,370
859
6,107
7,477
6,966
Q4
FY11 FY12
Q1 Q2 Q3
Net Revenues 32,236 6,935 6,953 5,280
Net Revenues (Excl. DVA)*1 28,555 8,913 6,603 7,542
Non-interest expenses 26,137 6,732 6,013 6,763
Income from continuingoperations before taxes
6,099 203 940 (1,483)
Income from continuingoperations before taxes
(Excl. DVA)*1
2,418 2,181 590 779
Net income applicable to MS 4,110 (94) 591 (1,023)
Earnings applicable to MScommon shareholders
2,067 (119) 564 (1,047)
M&A advisory (Apr-Dec 12)
Rank FA # Amount (¥bn) Share (%)
1
2
Mizuho FG
Nomura
102
103
4,765.3
4,235.8
41.2
36.6
3 MUMSS 93 3,657.3 31.6
4 JP Morgan 15 2,437.7 21.1
M&A advisory ( cross border deals) (Apr-Dec 12)
Rank FA # Amount (¥bn) Share (%)
1
2
3
4
5
Mizuho FG
Deutsche Bank AG
Nomura
Rothschild
Citi
27
10
25
9
5
2,628.5
2,060.0
1,969.8
1,963.4
1,827.3
37.7
29.5
28.2
28.1
26.2
6 MUMSS 22 1,697.9 24.3
I mpact on MUFG P/ L due toI mpact on MUFG P/ L due to
application of equity methodapplication of equity method
z Enhance the st rat egic alliance and expand scope of collaborat ion, fu lly leveraging BTMU
customer base
z Aiming t o achieve No.1 positi on in cross-border M&A t ransact ions involving Japanesecorporat ions in FY14
z Equity in net income of affi l iates was taken in About 22% of post-tax profits of MS. MS Oct-Dec 12 earnings to be
reflected in MUFG Jan-Mar 13 earnings
z Fall of MS share price w ill not affect MUFG consolidated earnin gs No impairment from equity-method affiliates’ shares in consolidated
earnings No impairment from goodwill as there is no goodwill for the investment
in MS
Any Japanese involvement announced (Source) Thomson Reuters
z JAL I PO – Domest ic and overseas bookrun ner
Deal value: approximately ¥660 bn World’s largest airline IPO in history Japan’s largest privatization IPO since book building
method was introduced in Sep 97 MUMSS and MSMS (MS) jointly involved in bookrunning
both the domestic and overseas tranches
z Advised DENTSU in t he acquisit ion of Aegis Group
Deal value: approximately ¥395.5 bn
Fully utilized Morgan Stanley’s global expertise
1
2
3
4
5
6
7
I t t d t & t il b i
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103.7
139.2
50
90
130
FY11 Q1-3 FY12 Q1-3
I nt egrated corporate & retail businessz To expand int egrated corporate & retail business, increase business ow ners asset s under management
and housing loans for corporat e employee sales. Aim ing t o generate addit ional revenue for FY14 by
¥10 bn from FY11z Have 53 off ices that can off er combined corporate and retail business (one-stop sales locations) by t he
end of FY12 ( 39 as of end Dec 12)
<After reorganization>
General manager
OperationServices
Department
BusinessDevelopment
Department NO.1(asset management)
BusinessDevelopment
Department NO.2(Finance)
General manager
OperationServices
Department
FinancialPlanning
Department
General manager
CommercialBanking
Department
<Current status>
Branch CommercialBanking Office Integrated management
OneOne--stop sales locat ionsstop sales locat ions (unif ied corporate and retail business)(unif ied corporate and retail business)
Expand in t egrated corporate & retail businessExpand in t egrated corporate & retail business
z Expand owner business
Increase asset management business primarily through totalasset marketing Increase investment product sales through cooperation with
MUMSS
z Expand business with corporate employee sales Enhance framework for ‘life event’ products/initiatives
z Support for growing SMEs Establish a specialist line within BTMU to support growing
companies
z Integrated offices (one-stop sales locations) Expand one-stop offices unifying corporate and retail business,
increase regionally-centered business
Assets undermanagement
¥2.6 tn
Housing loans
¥139.2 bn
Expand t o 53
off ices in FY12
< Business ow ners assets
under m anagement>< Executed housing loans for
corporate employee>
(¥tn) (¥bn)
2.2
2.6
1.5
2.0
2.5
End Dec 11 End Dec 12
I nvestment product sales
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0
10
20
30
40
FY10Q1 Q2 Q3 Q4
FY11Q1 Q2 Q3 Q4
FY12Q1 Q2 Q3
BTMU
z St rengt hen retail money desk*3
Increase staff seconded from MUMSS
z I ncrease t otal asset advisors*4
Increase number of private banking specialists toimprove consulting services, who assess customerassets and advise on inheritance, etc
MUTB
zDevelop total asset market ing approach, basedon t rust capabilities in inherit ance & real estate Strengthen proposal marketing through BTMU/MUTB
joint promotion for inheritance business Fully function the real estate section of MUTB in order
to strengthen approach to real estate related needsfrom succession and inheritance
MUMSSz St rengthen market ing of consulti ng business
Extend business with company owners with BTMU
Enhance internal training programs to foster andstrengthen advisors
I nvestm ent product salesI nvestm ent product sales* 1* 1
I ncome fromI ncome from iinvestment product snvestment pr oduct s
GroupGroup cooperationcooperation to st rengthento st rengthen ‘‘Total Asset SalesTotal Asset Sales’’
I nvestment product sales
0
200
400
600
8001,000
1,200
FY10
Q1 2Q 3Q 4Q
FY11
Q1 2Q 3Q 4Q
FY12
Q1 2Q 3Q
600
800
1,000
1,200
Financial products intermediation
Insurance annuities
Equity investment trusts sales
TOPIX(RHS)*2
z Recovery seen in sales and income fr om investm ent products, led by investment t rust andfinancial product s interm ediation. Aiming t o increase gross profi t s for FY14 by 40% from FY11
z Cont inue st rengt hening of collaborat ion among t he group companies
*1 Managerial accounting base *2 Closing price base
*3 Team of experts with high level investment product sales expertise. As of end Dec 12,assigned to 63 locations in Japan
*4 Team with specialist knowledge of investment assets, real estate, wills and trusts isassigned to use their skills to promote sales targeting overall customer assets. As of end Dec 12, 135 advisors
(¥bn)
(¥bn)
Consumer f inance
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0
5
10
FY08 FY09 FY10 FY11 FY12
100
150
200
250LHS Volume of shopping payment
RHS Average payment by customer1.14
1.07
0.880.78
0.71 0.70
0.560.560.480.44
0.32
0.19
0.0
0.4
0.8
1.2
End Mar
09
End Mar
10
End Mar
11
End Mar
12
End Sep
12
End Dec
12
Consumer f inancez MU NI COS Aiming t o increase volume of shopping and balance of revolving credit in t he
grow ing credit card business
z ACOM Pace of decline in unsecured consum er loan balance has slowed. Aim ing t o increasegross prof it s, including grow th fr om guarant ee business
z BTMU Loan balance of BANQI C shown consistent grow t h aiming t o double or m ore by FY14
<Balance of revolving credit>
100
150
200
250
End Mar09
End Mar10
End Mar11
End Mar12
End Sep12
End Dec12
19.2 39.868.2
110.7135.6 148.2
0
50
100
150
End Mar09
End Mar10
End Mar11
End Mar12
End Sep12
End Dec12
19.0%
Market Share*1
MUMU NNI COSI COS ACOMACOM
*1 Unsecured consumer loan of ACOM / Unsecured consumer loan(Source) Japan Financial Service Association *2 Share at end of Nov 12
<Volume of shopping payment and average payment> <Balance of unsecured consumer loan and guarantee>(¥tn)
(¥bn)
(¥tn)
(¥bn)
Loan balance of BTMU BANQUI CLoan balance of BTMU BANQUI C
(¥th)
H1 H1 H1 H1H1 Guarantee
Unsecuredconsumer loan
23.5%
29.7%31.9%*231.6% 31.6%
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Capit al policy
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St rengt hen equit y capitalSt rat egic investments for
sustainable grow th
Enhance fur t hershareholder returns
MUFG’sCorporate
Value
MUFG’sCorporate
Value
zEnhance fur t her shareholder returns while maint aining a balance among 3
priori t ies including st rengthening capital and making st rategic investmentfor sustainable grow th
Capit al policy
St rengt hen equit y capit al
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St rengt hen equit y capit al
3.5%
4.0%4.5% 4.5% 4.5% 4.5% 4.5%
0.625%1.25%
1.875%2.5%
0.375%
0.75%
1.125%
1.5%
End Sep
12
End Mar
13
End Mar
14
End Mar
15
End Mar
16
End Mar
17
End Mar
18
End Mar
19
3.5%
4.0%4.5%
5.5%
6.5%
7.5%
8.5% Additional capitalsurcharge to be imposedon MUFG as G-SIFIs*2
Approx. 10%* 1
z CET1 ratio on the basis of ful l exclusion of deductable items is est imated t o have approx.
10% as of t he end Sep 12. Secured appropriate levels in response to regulat ionsz Taking into account bu ffer for market and economic uncertainty , t arget ing 9.5% or above
CET1 rat io ofCET1 rat io of BaselBasel 33 regulationsregulations
MUFG
Target9 .5% orabove
Full exclusion of deductable items
Required level
Capital
ConservationBuffer
MinimumCET1 ratio
(Basel 3 introduction) (Full implementation of Basel 3)
*1 Calculated on the basis of current information
*2 Level of surcharge (1.5%) is based on the classification into buckets announced by the Financial Stability Board in Nov 12. Assuming that this will beintroduced from the end of Mar 16, in similar way (equally-phased in base) to Capital Conservation Buffer. The buckets classification imposed on the endof Mar 16 is expected to be announced in Nov 14
St rategic investment s for sustainable grow th
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St rategic investment s for sustainable grow th
z Make st rategic investment s w hen good opport unit iesarise w it h due regard t o the ext ernal environment and
regulatory t rends
z Asset purchases t o be considered provided t heycont ribu te to st rengt hening exist ing business and offerreasonable returns
z Exist ing investments to be review ed periodically based
on established ru les, taking int o account investmentefficiency and ot her factors
Enhance fur t her shareholder returns
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0
50
100
150
200
250
300
350
FY07 FY08 FY09 FY10 FY11 FY12
Buy-back
Dividend
Enhance fur t her shareholder returns
zPolicy of st eady increase in d ividends per share t hrough sustainable
st rengthening of profit abil it yzBuy-back is also an option depending on the circumstances
¥12¥12¥12¥12¥12¥14
Result s of shareholder returns/ Dividend forecastResult s of shareholder returns/ Dividend forecast
(¥bn)
Dividend percommon stock
Appendix : Basic policies of t he medium-term business plan
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pp p p
zAs st ructural change proceeds inside and out side Japan, t he competit ive environm ent remainschallenging and global f inancial regulation is tight er
zRespond to t he changing environment by maximizing MUFG’s st rengths. Wit h t he aim of “ be thew orld’s most t rusted financial group” , formulated the new m edium-t erm plan
Operating environment
Weak potential growth, aging population, falling savings
rate
Accelerating globalization of Japanese firms
Post-quake reconstruction, impact of sales tax increase
Asia becoming world’s largest economic area.
Central/south America also growing
EU sovereign debt problem; gradual U.S./ Asian recovery
Basel capital regulations toughened. Importance of
managing uncertainty at G-SIFIs
Domestic
Overseas
Regulatory
MUFG’s st rengths
Excellent customer baseExcellent customer base Global network Global network
Comprehensivegroup strength
Comprehensivegroup strengthSolid financial standingSolid financial standing
Our visionBe the w orld’s most t rusted financial group
Three basic pol icies1. Enhance compr ehensive financial service capabili t ies on a global basis2. Cont ribut e to init iatives for revitalizing and regenerating the Japanese market3. Leverage w orld-class capabilit ies in capit al and risk m anagement
Appendix : Financial t argets
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pp g
zCont inue pursuit of sust ainable increase of profit abilit y and efficient capit al management.I nt roduction of new economic capital f ramew ork in response to Basel 3
z The target for consolidat ed net operating profit (customer division) is 20% increase fromFY11. New ly-established benchmark t argets, consolidated net income RORA is approx.0.9% , consolidated ROE of approx. 8%
FY11 results
50.4%(Non-consolidated)
0.8%Consolidated net income RORA *2*3
7.7%Consolidated ROE*2
Approx. 9%CET1 ratio*3FinancialStrength
56.9%Consolidated expense ratio
Profitability
¥1,050.9 bnConsolidated net operating profit(customer division)*1Growth
FY14 Target s
Betw een 50-55%
Approx. 0.9%
Approx. 8%
9.5 or above
Betw een 55-60%
20% increasefrom FY11
FY14 t argets
( fr om FY11)
Up 15%
Up 15%
Up 35%
Up 45%
Consolidated net operating profitby segments : FY11 results
¥314.8 bnRetail
¥419.3 bnCorporate
¥52.8 bnTrust Assets
¥264.0 bnGlobal
Real GDP growthrate (annual rate)
Dollar-yen
(period-end rate)
Unsecured call rate(period average)
2.5%
¥83
0.07%
FY12
0.2%
¥83
0.07%
FY13 FY14
2.3%
¥83
0.17%
*1 Simple sum of consolidated operating profits for retail, corporate, global and trust assets segments
*2 FY11 figures exclude negative goodwill associated with application of equity method accounting onour investment in Morgan Stanley
*3 Under Basel 3 regulatory regime, fully reflective of all necessary adjustment on capital
(Underlying macroeconomic assumptions)
FY12 H1 results
48.3%
Approx. 0.7%
6.14%
Approx. 10%
55.3%
¥492.0 bn
Appendix: ( Reference) Est imation of net income grow th
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(256.9)
388.7
583.0
690.6
(300)
(100)
100
300
500
700
900
FY08 FY09 FY10 FY11 FY14
200
400
600
800
Consolidated net
income
¥800.0 bn level
zReduct ion in Global Market segment to be covered by increased prof it in
t he customer division w it h a view to post ing consolidated net income of¥800.0 bn level in FY14
FY11* 2 GlobalMarket
segment
Customerdivision
Totalcreditcosts
Netgains
(losses)on
equitysecurities
Others FY14target
*1 Breakdown of changes above are after-tax base
*2 Excluding Morgan Stanley negative goodwill
(¥bn)
690.6
981.3
Excluding MorganStanley negative goodwill
Net incomeNet income
(¥bn)
Appendix : Basic st rat egy
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4545
z Advance t he business st rat egy, st rengt hen management fundamentals
and cont rol according t o the three basic policies
Advancing t he group’s business st rat egy
Emerging mark ets in Asia and elsew here: Deposit s/ lending, sett lement andmarket-related business (regional str ategy)
Global CI B
MUFG corporate solut ions business
Total financial services for individuals
Domest ic and overseas asset management5
Global administrat ion pract ices
I nt egrated risk m anagement
Joint usage and st reamlining of operat ion process and system inf rast ructure4
4
3
2
1
2
1
St rengthening management f undamentals and cont rol
Upgrade financial and capit al management13
Appendix: Retail st rategy
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0
100
200
300
400
¥314.8 bn
Up 15%
(¥bn)
FY14(Target)FY11FY10FY09
pp gy
Net operat ing profi t s t argetNet operat ing profit s t arget Key st rat egiesKey st rat egies
FY14 Aiming for 15% increase
from FY11
z Provide services opt im ized for t he life st age of each cust omer
z Leverage BTMU’s customer base to build dom inant presence as a comprehensivefinancial services group
z St rengthen I nternet Banking
Expand internet banking channel servicesby improving smartphone applications,expanding transaction menu, etc
Review customer interface to improveusability and convenience
z Enhance consult ing business Expand customer contact and proposal
opportunities by reforming outside visits,call centers and other operational processes
z Grow private banking
Boost personnel with specialist skills inasset management, inheritance, corporateowner transactions, etc
Deepen inter-group cooperation based onlong-term relationships and specialist skillsto service wider customer needs in areassuch as asset management andintergenerational transactions
(Note) Exchange rates: Those adopted in our business plan ($/¥=83, etc)
Appendix: Corporate st rategy
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0
100
200
300
400
500
¥419.3 bn
Up 15%
Key st rat egiesKey st rategies
zProgress and reform each business model of BTMU, MUTB and MUMSS, aiming t oachieve leading posit ion in each operat ion
z Leverage MUFG group capabili t ies t o provide compelling solut ions and suppor tcust omers’ domest ic and foreign grow t h
Net operat ing profi t s t argetNet operat ing profit s t arget
FY14 Aiming for 15% increase
from FY11(¥bn)
FY14(Target)FY11FY10FY09
z Expand global financial services (large/ global
corporate companies)
Expand solutions business, such as project finance Grow overseas business through deeper links with Global
segments
Leverage Morgan Stanley’s global network and strengthenprimary business through cooperation between BTMU andMUMSS
Leverage commercial bank customer base to grow Trust Bank
operations (securities agency service, real estate, DC pensionplans) and corporate secondary transactions
z St rengthen consult ing business (m edium-sized
companies)
Accelerate provision of tailored solutions-based services thataddress key management issues
Increase support for overseas expansion, business successionand other such needs
z Develop int egrated corporate and r etail business
(SMEs, ow ners)
Expand integrated corporate/individual business for ownersby integrating commercial bank’s corporate and retailbranches
Provide detailed support for SME growth(Note) Exchange rates: Those adopted in our business plan ($/¥=83, etc)
Apendix : Global st rategy
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0
100
200
300
400
¥264.0 bn
Up 35%
Key st rat egiesKey st rategies
z Collaborat e betw een r egions and operat ions, using overseas cust omer base ofcomm ercial bank t o const ruct compet it ive, added-value model
z Pursue non-organic grow th w hile developing new businesses and emergingmarkets
Net operat ing profi t s t argetNet operat ing profit s t arget
FY14 Aiming for 35% increase
from FY11(¥bn)
FY14(Target)FY11FY10FY09
zExpand presence in Asia and ot heremerging markets
Strengthen marketing to target non-Japanese andfinancial institutions
Within Asia and between Europe and Americas, enhancecollaboration between BTMU and securities subsidiariesto support customers’ business expansion outside Asia
region In Latin America, the Middle East and Russia, pursue
business strategies that take into account national andregional differences, and expand network
zPursue Global CI B business Provide optimal solutions for customers in commercial
banking to satisfy their needs in overseas markets incollaboration with Morgan Stanley and our local securitiesentities
Strengthen business in project finance, ECA finance andtrade finance
zGrow t ransaction banking business
(Note) Exchange rates: Those adopted in our business plan ($/¥=83, etc)
Appendix : Trust assets st rat egy
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0
50
100
¥52.8 bn
Up 45%
Key st rategiesKey st rat egiesNet operat ing profi t s t argetNet operat ing profit s t arget
zLeverage MUFG Group customer base and overseas netw ork t o
develop as Japan’s leading asset manager and administ rat or,recognized globally
FY14 Aiming for 45% increase
from FY11(¥bn)
FY14(Target)FY11FY10FY09
zExpand pension business
Increase cooperation between BTMU and MUTB,strengthen marketing infrastructure
Lift performance of own products, and developproducts that also incorporate characteristics of partners
zBoost investment t rust business
Strengthen collaboration between internal and externaldistribution partners
Unify asset management operating platforms to boostmanagement and product development
zDevelop globally
Use investment and tie-ups to develop globally,focusing on high-growth Asia and large-scale Europeand U.S. markets
Aim to become globally competitive asset managementcompany and also expand foreign investment trustmanagement business
(Note) Exchange rates: Those adopted in our business plan ($/¥=83, etc)
Exposures in European per ipheral count r ies
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Lim it ed exposuresLim it ed exposures
Balance of sovereign bondsBalance of sovereign bonds (MUFG)(MUFG)
ExposuresExposures (BTMU consolidated)(BTMU consolidated)
z Exposures t o European peripheral count ries in BTMU consolidated w ere
lim it ed compared to the size of consolidat ed tot al assets
Approx.$12.1 bn
Approx.$0.2 bn
Approx.$0.6 bn
Approx.$0.2 bn
Approx.$6.0 bn Approx.$5.1 bn
End Dec 12
Approx.$12.2 bn
Approx.$0.2 bn
Approx.$0.6 bn
Approx.$0.2 bn
Approx.$6.1 bn Approx.$5.2 bn
End Sep 12
Total
Ireland
Portugal
Greece
I ta l ySpain
Approx.$1.6 bn
-
$0.0 bn
-
Approx.$1.5 bn
Approx.$0.1 bn
End Dec 12
Approx.$1.6 bn
-
$0.0 bn
-
Approx.$1.5 bn
Approx.$0.1 bn
End Sep 12
Total
Ireland
Portugal
Greece
I ta ly
Spain
No exposures to sovereign borrowers More than 90% of exposures were to
industrial corporations and structured finance
Exposures to Spain and Italy were mainly forinfrastructure, such as electricity, gas andtelecommunications, etc
Limited exposures to financial institutions
Exposures including CDS hedge were approx.$11.1bn
z Exposures (BTMU consolidated)
No Greek or Irish government bonds
Hold-to-Maturity accounting has been usedfor most of Italian government bonds whichwill be redeemed within next 2 years
z Balance of sovereign bonds (MUFG)
Capital rat ios Consolidated
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4,952.64,798.5Operational risk weighted asset14
12.57%12.31%Tier 1 ratio (%)17
14.30%14.91%Risk-adjusted capital ratio (%)16
General allowance for creditlosses, etc.
Subordinated debt
Net unrealized gains oninvestment securities
Net unrealized losses oninvestment securities
Preferred securities
Preferred stocks
Tier2 (includable as qualifying capital)
Tier 1
98.1104.59
264.3343.07
12,318.412,742.5Total qualifying capital1
14,091.26,606.0Transitional floor15
2,191.12,380.0Market risk weighted asset13
1,782.41,818.4Deduction from total qualifying capital10
--51,204.31,207.34
End Sep 12End Mar 12
2,676.53,446.58
390.0390.03
Credit risk weighted asset
9.73%9.49%Outlier ratio18
86,117.985,456.5Risk-adjusted assets11
64,882.771,672.012
3,268.74,038.76
10,832.210,522.22
(¥bn)
RiskRisk --Adjusted Capital r atiosAdjusted Capital r ati os(Based on t he Basel 2 Standards)(Based on t he Basel 2 Standards)
Reference: Basel 3 StandardsReference: Basel 3 Standards
z
CET1 rat io
*1
Approx, 10%(under full deductions*2)
Approx, 12%(under phase-in approach*3)
*1 Calculated on the basis of current information*2 Based on the standard when Basel 3 is fully implemented*3 Based on the standard at the end of Mar 13 when Basel 3
is introduced, taking into account transitional measures
65
70
75
80
85
End Sep 12 End Sep 12
RWA (pr ovisional calculation)(¥tn)
Basel 2
Excl.transitionalfloor
Approx,+10%
Basel 3
z Tier 1 + ¥309.9 bnNet income +¥290.4 bnInterim dividend ¥(93.9) bnForeign currency translation adjustments +¥63.4 bn
z Tier2 ¥(770.0 ) bn
Change of 45% of unrealized gains oninvestment securities ¥(78.7) bn
Change of subordinated debt ¥(770.0) bn
z RWA + ¥0.6 tnCredit risk ¥(6.7) tn Adjustment to the transitional floor +¥7.4 tn(arose from AMA adoption at End Mar 12)
Our vision
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Be the world’s most t rusted financial group
1. Work t oget her t o exceed the expectations of our customers
Strive to understand and respond to the diversified needs of our customers.
Maintain and expect the highest levels of professionalism and expertise, supported by
our consolidated strength
2. Provide reliable and constant support t o our cust omers
Give the highest priority to protecting the interests of our customers.
Promote healthy, sustainable economic growth.Maintain a robust organization that is effective, professional, and responsive
3. Expand and strengthen our global presence
Leverage our strengths and capabilities to attract a loyal global customer base.
Adapt rapidly to changes in the global economy and their impact on the needs of ourcustomers