02-10-13 MUFG Strategy Q3

7/29/2019 02-10-13 MUFG Strategy Q3

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Mit subishi UFJ Secur it ies Holdings

Business St rategy

January 2013

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1

This document contains forw ard looking statements in regard t o forecast s,t argets and plans of Mit subishi UFJ Financial Group, I nc. ( “ MUFG” ) and it sgroup companies (collect ively, “ t he group” ) . These forw ard lookingst atement s are based on information currently available t o t he group and arest ated here on the basis of t he out look at t he t ime t hat t his document w as

produced. I n addit ion, in producing t hese statement s certain assumpt ions(premises) have been ut ilized. These statement s and assumpt ions (pr emises)are subj ect ive and may prove to be incorrect and may not be realized in t hefu ture. Underly ing such circumstances are a large num ber of r isks anduncert aint ies. Please see other disclosure and public fi lings made or w ill bemade by MUFG and the other companies compr ising the group, including the

latest kessantanshin , financial report s, Japanese securit ies report s andannual report s, for addit ional inform ation r egarding such risks anduncert ainties. The group has no obligat ion or int ent t o update any forw ard-looking statements contained in t his document

I n addit ion, information on companies and ot her entit ies outside t he groupt hat is recorded in t his document has been obt ained f rom publicly availableinform at ion and ot her sources. The accuracy and appropr iateness of t hatinformation has not been verif ied by t he group and cannot be guaranteed

The financial informat ion used in t his document w as prepared in accordancew it h account ing standards generally accept ed in Japan, or Japanese GAAP

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2

Contents

z History and group overviewz FY2012-14 Medium -t erm Business Plan

vision and st rategy

z Financial result sz FY2012 H1 result s summaryz

Financial result s comparison w it h ot her Japanesesecurit ies firms

z Domest ic secur it ies st rategy

-MUMSS Financial resul t s

-MUMSS Sales divisions

-MUMSS I nvestment banking business uni t

-MUMSS Global market business unit

z Private banking st rategyz Global st rat egy

4

5

Out line of Financial Resul t sOut line of Financial Resul t s

Major subsidiariesMajor subsidiaries’’ posit ion and st rategyposit ion and st rategy

Overv iew of Mit subishi UFJ Secur it ies HoldingsOverview of Mit subishi UFJ Secur it ies Holdings

11

2122

7

8

9

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3

Overview of Mit subishi UFJ

Secur it ies Holdings

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4

Hist ory and group overview

60%Main foreign securities firm s Main domestic

subsidiaries

100%

Mit subishi UFJ Secur it iesHoldings (MUSHD)

40%

Morgan StanleyMUFG Secur it ies

(MSMS)

60% economicinterest; 49%voting rights

100%

MSJH

Morgan Stanley

MUS-MSJH Japan a lli ance

MUFG-MS Global All iance

MUFG

40% economicinterest; 51%voting rights

Approx.22%

< Equity method affi l iate>

z Apr. 2010 Mit subishi UFJ Securit ies Holdings (MUSHD) est ablished

z May 2010 MUSHD group company Mitsubishi UFJ Securit ies int egrated w it h Morgan StanleyJapan Secur it ies’s investm ent banking operat ions and w as renamed Mitsubishi UFJMorgan Stanley Secur it ies

z MUFG’s core secur it ies group including domest ic and overseas secur it ies and asset managementf i rms

MUS(USA)(100%owned)

MUSI(100%owned)

KOKUSAI AM(55% owned)

67% MUFG

consolidated

base

Mit subishi UFJMorgan Stanley

Securities(MUMSS)

MUS(SPR)(100%owned)

MUS(HK)(100%owned)

MUML-PB(51% owned)

100% MUFG

consolidated

base

MUTB BTMU

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5

FY2012-14 Medium-t erm Business Plan vision and st rat egy

Our VisionAs a part of t he world’s most t rusted financial group

1. Work t ogether t o exceed the expectat ions of our cust omers2. Provide reliable and const ant support t o our cust omers3. Expand and st rengt hen our global presence

4. I nspire the t rust of shareholders by enhancing corporate value

Medium -t erm Business Plan Vision

To respond t o custom ers’ diverse needs as MUFG’s core secur it ies group bycollaborat ing w it h MUFG group companies as a bank- aff il iat ed secur it ies fi rm , and by

leveraging our relationship w it h JV part ner Morgan St anley

Core St rategy1. Drive BTMU/ MUSHD collaborat ion ( in Japan) and ut i l ize Morgan St anley’s global r each t oprovide high qualit y service

2. Pursue collaborat ion betw een our overseas subsidiaries and MUFG group companies3. St rengt hen management fundamentals and cont rol

–Signif icant ly st rengthen r isk managem ent and other funct ions r equired for global governance

–Create a robust operat ional base built on self -sust aining cost cont rol cu lt ure

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Out line of Financial Resul t s

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22.4

6.3

19.4 16.3

0.2

18.0

(69.8)

(40.0)

(20.0)

0.0

20.0

40.0

FY09

H1

FY09

H2

FY10

H1

FY10

H2

FY11

H1

FY11

H2

FY12

H1

31.9

9.0

17.720.4

30.5

(2.2)

(93.5)(40.0)

(20.0)

0.0

20.0

40.0

FY09

H1

FY09

H2

FY10

H1

FY10

H2

FY11

H1

FY11

H2

FY12

H1

155.2

131.8 127.2

12.5

114.0124.5 129.1

0.0

50.0

100.0

150.0

200.0

FY09

H1

FY09

H2

FY10

H1

FY10

H2

FY11

H1

FY11

H2

FY12

H1

7

Financial resul t s (MUSHD consolidat ed)

z Follow ing large losses in t he t rading business in FY2010, business st ructure w as

reform ed and returned to profi t in FY2011 H1, and later income increased steadilyz Main init iati ves: Thoroughly strengthened collaborat ion w it h BTMU and Morgan Stanley,

reduced fixed cost s t hrough a range of cost -cut t ing init iati ves, and t ransform edbusiness model of global market business

< Net operating revenue

< Selling, general and administ rat ive expenses>

< Ordinary income and loss>

< Net income and loss>

* FY2011 H2: MUMSS early retirement program resulted in extraordinary loss

*

129.4

133.6 134.2

120.6 121.9

118.1 117.5

100.0

110.0

120.0

130.0

140.0

FY09

H1

FY09

H2

FY10

H1

FY10

H2

FY11

H1

FY11

H2

FY12

H1

(¥bn)

(¥bn)

(¥bn)

(¥bn)

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FY2012 H1 result s summary

z Underw rit ing, secondary dist ribut ion commissions and t rading incomest rong. Returned to operating profi t , helped by low er SG&A expenses

z I ncreases in ordinary income and net income

z Net operat ing revenue

Commissions received• Commission to consignees: declined due tosluggish market conditions

• Underwriting, secondary distributioncommissions: increased due to winning of leadmanager mandates on large IPO

• Offering, secondary distribution commissions:investment trust sales commissions declined

• Other commissions: Commissions toconsignees declined due to decrease inKOKUSAI AM’s investment assets. MUMSSincreased due to good performance in M&A advisory

Trading income• Large increase in income by steadily capturing

client transaction flow

z SG&A

Decreased due to restrained spending

< Consolidated income statement>

(MUSHD consolidated)

(¥bn)

Change

Operating revenue 152.8 155.2 2.4Commison received 73.0 69.0 (3.9)

Commision to consignees 9.2 7.3 (1.8)

Commision for underwriting,

secondary distribution6.6 12.7 6.1

Fee for offering, secondary

distribution17.9 14.9 (2.9)

Other fees received 39.2 33.9 (5.2)

Net trading income 36.5 49.4 12.8

Stocks (9.0) (9.3) (0.3)

Bonds, others 45.5 58.7 13.2

Financial revenue 44.6 36.7 (7.8)

Financial expenses 38.7 26.1 (12.5)

Net operating revenue 114.0 129.1 15.0Selling, general and administrative expenses 121.9 117.5 (4.4)

Operating income(loss) (7.8) 11.5 19.4

Non-operating income 27.6 19.7 (7.8)

Interest income 3.6 3.5 (0.0)

Equity in earnings of affiliates 19.7 12.0 (7.7)

Non-operating expenses 1.9 0.8 (1.1)

Ordinary income 17.7 30.5 12.7

Extraordinary income 6.8 1.1 (5.6)

Net income 16.3 18.0 1.6

FY11 H1 FY12 H1

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9

(¥bn)

Financial result s comparison w it h other Japanese secur it ies f irms

(Source) Calculated by MUMSS based on company disclosures

306.9 155.2 1851.7 900.8 422.3 227.3 228.5 138.1 251.2 118.7

238.5 129.1 1535.8 770.9 336.0 175.3 167.1 106.7 228.8 108.5

143.0 69.0 551.0 244.3 220.8 100.6 118.7 57.7 119.4 53.3

19.3 7.3 178.1 73.0 40.7 16.9 27.1 12.1 13.8 5.9

15.9 12.7 28.9 13.5 19.5 12.5 22.7 12.5 18.7 7.9

33.3 14.9 169.0 76.6 49.1 19.0 25.1 9.8 46.6 21.7

74.4 33.9 175.0 81.2 111.4 52.0 43.6 23.1 40.0 17.6

86.0 49.4 272.5 173.3 79.4 47.1 8.7 31.5 102.2 50.7

Stocks (6.2) (9.3) - - (6.4) (12.4) (5.0) (4.3) 0.3 (0.1)

Bonds, exchanges, etc 92.2 58.7 - - 85.8 59.5 13.7 35.8 101.9 50.9

(2.1) (0.0) 25.0 (5.0) 1.9 5.9 (0.2) 0.4 - -

12.1 10.6 119.9 66.4 20.0 10.4 39.9 17.0 4.5 3.4

(0.4) 0.0 567.1 291.8 13.7 11.2 - - 2.5 1.0

240.1 117.5 1450.9 715.8 359.7 164.7 218.4 97.7 185.1 91.8

(1.5) 11.5 84.9 55.0 (23.7) 10.6 (51.2) 9.0 43.7 16.7

39.7 18.9 - - 11.5 6.3 1.4 0.7 0.8 0.6

38.1 30.5 84.9 55.0 (12.2) 16.9 (49.7) 9.7 44.5 17.3

(13.6) 1.1 - - (4.6) (0.1) (27.2) (2.3) (1.2) (4.6)

16.5 18.0 11.5 4.7 (39.4) 10.0 (95.6) 8.3 19.4 6.6

FY2011FY2012

H1

MUSHD Nomura Holdings Daiwa Securities GroupMizuho Securities

(consolidated)

SMBC Nikko Securities(consolidated)

FY2011FY2012

H1

Operating revenue

FY2011FY2012

H1FY2011

FY2012

H1FY2011

FY2012

H1

Net operating revenue

Commison received

Commision to consignees

Commision for underwriting,

secondary distribution

Fee for offering, secondary

distribution

Other fees received

Net trading income

Net gain on private equity and

other securities

Net interest income

Others

Selling, general andadministrative expenses

Operating income(loss)

Non-operating income

Ordinary income(loss)

Extraordinary income(loss)

Net income(loss)

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10

Maj or subsidiaries’ posit ion

and st rat egy

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9.6

1.3

(13.6)

18.9

(9.1) (3.1)

(135.8)(40.0)

(20.0)

0.0

20.0

FY09

H1

FY09

H2

FY10

H1

FY10

H2

FY11

H1

FY11

H2

FY12

H1

8.52.5

7.1

14.3

(120.4)

(6.2) (4.3)

(40.0)

(20.0)

0.0

20.0

FY09

H1

FY09

H2

FY10

H1

FY10

H2

FY11

H1

FY11

H2

FY12

H1

104.398.6

89.8 81.4 88.694.8

(28.3)

(30.0)

20.0

70.0

120.0

FY09H1 FY09H2 FY10H1 FY10H2 FY11H1 FY11H2 FY12H1

96.9 96.6 97.5

92.4

86.6

82.981.6

70.0

80.0

90.0

100.0

FY09

H1

FY09

H2

FY10

H1

FY10

H2

FY11

H1

FY11

H2

FY12

H111

MUMSS: Financial result s

z Ordinary income and net income for FY2012 H1 m arked t he highest since FY2009

z SG&A expenses reduced by approx . ¥30 bn compared t o FY2009 due t o variousinit iatives and st rict spending controls

* FY2011 H2: Early retirement program resulted in extraordinary loss

*

< Net operating revenue < Ordinary income and loss>

< Selling, general and administr ati ve expenses> < Net income and loss>

(¥bn)

(¥bn)

(¥bn)

(¥bn)

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12

z Promote sharing of sales know -how

z

I mpr ove back off ice efficiency

Large scale

offices

MUMSS: Sales divisions (1) Overall st rategy

z Enhance comprehensive st rengths and productivit y t hrough innovation in sales

st yle, BTMU/ MUMSS collaborat ion, and st rengthening product compet it ivenesst hrough Morgan St anley collaboration

z Build effective sales st ructure t o mat ch each cust omer segment

I nnovation insales st yle

z Thorough profil ing sales

Deliver high qualit y serv ices, expandcust omer base and achieve sust ainable

growing of prof i t abi l i ty

Privatebanking

tier

Financialplanning

tier

Lif e Planningtier

z Consulting-type salesz Enlarge customer base

through BTMU/ MUMSScollaboration

z I ncrease active

accounts throughstronger pr oposals

z Prom ote financialproductsintermediationbusiness

zSt rengthen onlineproducts and functions

z I ncrease efficiency bypromot ing e-contract s

Productstrategy

z Collaborate w it h Morgan Stanleyz Expand services/ product l ineup

mat ched to customer needs

BTMU/ MUMSScollaboration

z St rengt hen cooperat ion w it h BTMU

z Promote referrals and

intermediation

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13

MUMSS: Sales div isions (2) Product st rategy

z Meet diverse custom er needs by expanding t he range of overseas equit ies and

bonds handledz I ncrease high value-added products through collaborat ion w it h Morgan St anley

and t ie-up w it h KOKUSAI AM

z Bonds Morgan Stanley Foreign Currency Denominated Offering Bond

• Over ¥350.0 bn sold over past 20 months

z I nvestment t rusts (Product development in collaboration w it h

Morgan Stanley and KOKUSAI AM)

Kokusai Morgan Stanley Global Premium Stock Open JPY Hedged / NotHedged

Short-Term High Yield Corporate Bond Fund 2012-10 USD-denominated USDHedged Class, JPY-denominated JPY Hedged Class

Short-Term High Yield Corporate Bond Fund 2012-10 JPY-denominated JPY Appreciation Hedged and Depreciation Followed Type

Main products in collaboration w it h Morgan StanleyMain product s in collaborat ion w it h Morgan Stanley

z I nvestment t rusts Kokusai Turkish Bond and Equity Fund 2012－09 Kokusai Asia Oceania Attractive Dividend Open Kokusai Alternative Strategies QTX-Winton Alpha Investment Open

Main t ieMain t ie--up products w it h KOKUSAI AM (2012 H1)up products w it h KOKUSAI AM (2012 H1)

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0.0

50.0

100.0

150.0

200.0

250.0

300.0

FY09

H1

FY09

H2

FY10

H1

FY10

H2

FY11

H1

FY11

H2

FY12

H1

0.0

200.0

400.0

600.0

800.0

FY09

H1

FY09

H2

FY10

H1

FY10

H2

FY11

H1

FY11

H2

FY12

H1

100

120

140

160

180

200

(FY09 H1

=100)

Foreign bonds Investment trusts Sales per employee

14

z Alt hough number of sales st aff w as reduced t hrough an early r etir ement program,FY2012 H1 products sales w ere up fr om FY2011 H2

z Sales per employee have increased since 2009, a st eady increase in pr oducti vit y

Foreign bonds/ I nvestment t rust sForeign bonds/ I nvestment t rust s

sales (Ret ail)sales (Ret ail)

MUMSS: Sales div isions(3)Results (excluding f inancial products int ermediation)

Foreign equit ies t rading volume*Foreign equit ies t rading volume*

(Retail)(Retail)

FY2009 H1 sales per employee = 100

* Sales of foreign bonds, investment trusts divided by numberof sales staff at period end

*

(¥bn)

*Total of over-the-counter and agency trade(¥bn)

(RHS)

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0.0

5.0

10.0

15.0

FY09

H1

FY09

H2

FY10

H1

FY10

H2

FY11

H1

FY11

H2

FY12

H1

500

550

600

650

700

Net operating revenue Staff transfered to BTMU etc. (RHS)

176.1

248.2

282.8

240.2

276.1

302.9

344.1

0.0

100.0

200.0

300.0

400.0

FY09

H1

FY09

H2

FY10

H1

FY10

H2

FY11

H1

FY11

H2

FY12

H1

Foreign bonds Investment trusts

15

MUMSS: Sales div isions (4)Financial product s int ermediat ion

z Financial products int ermediation result s st rong due t o major progress in

BTMU/ MUMSS collaborat ionz Expand business th rough increase in staf f t ransfered t o BTMU et c.

Net operating revenue of financialNet operating revenue of financialproducts intermediationproducts intermediation

z Revenue grow t h t hrough deepening

transactions Revenue has doubled since FY2009 H1 due

to development in BTMU/MUMSScollaboration

z Sales of f oreign bonds and investm ent

t rusts are on an increasing t rend

Sales of f inancialSales of f inancialproducts intermediationproducts intermediation

(¥bn) (¥bn)(staff)

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16

MUMSS: I nvestment banking business unit(1)St rat egy and vision

zUse our unique compet it ive edge as a bank-ow ned/ foreign-ow ned hybrid securit ies

fir m t o deliver added value and service that compet it ors can’t matchz I ncrease our presence as an arm of MUFG and Morgan St anley’s invest ment

bank ing business in Japan

The mission of investment banking business uni tThe mission of investment banking business uni t

We will put quality foremost and quickly and precisely respond to customers’ needs while continuously providing globally-recognized, high quality investmentbanking advice and solutions. Through this, we will contribute to the growth andcompetitiveness of Japanese business by deeply participating in planning and

execution of business and capital strategy as a trusted partner of Japan’s topbusiness management

Exer t uniqueness as hybrid

securi t ies firm

Make maximum use of MorganSt anley’s global netw ork

St rengt hen collaborationw ith BTMU

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Rank

MUMSS Nomura Mizuho Financial Group

2,232.2 bn\

23.1% 395.3 bn\

23.9% 4,765.3 bn\

41.2%Mizuho Securities Daiwa Securities Group Nomura2,075.1 bn\ 21.5% 324.0 bn\ 19.6% 4,235.8 bn\ 36.6%

Nomura Securities MUMSS MUMSS1,532.0 bn\ 15.9% 217.2 bn\ 13.1% 3,657.3 bn\ 31.6%

Daiwa Securities Mizuho Financial Group JP Morgan1,422.9 bn\ 14.7% 209.7 bn\ 12.7% 2,437.7 bn\ 21.1%

SMBC Nikko Securities Sumitomo Mitsui Financial Group Goldman Sachs & Co1,040.9 bn\ 10.8% 188.1 bn\ 11.4% 2,270.5 bn\ 19.6%

MUMSS Nomura Nomura2,788.3 bn\ 22.6% 278.5 bn\ 22.7% 4,989.4 bn\ 34.5%

Nomura Securities Daiwa Securities Group Goldman Sachs & Co2,355.9 bn\ 19.1% 276.3 bn\ 22.5% 4,281.9 bn\ 29.6%

Mizuho Securities Sumitomo Mitsui Financial Group Mizuho Financial Group2,254.5 bn\ 18.3% 240.6 bn\ 19.6% 3,575.9 bn\ 24.8%

SMBC Nikko Securities Mizuho Financial Group Deutsche Bank AG1,827.5 bn\ 14.8% 157.5 bn\ 12.8% 3,517.9 bn\ 24.4%

Daiwa Securities Capital Markets MUMSS Bank of America Merrill Lynch1,643.5 bn\ 13.3% 126.0 bn\ 10.3% 3,327.4 bn\ 23.0%

7: MUMSS2,896.1 bn\ 20.0%

5

4

3

2

1

M&A Advisory (annou nced base)* 3

Japan Equit y and Equit y-link ed* 2

Apr-Dec 2012

Japan Domestic Debt* 1

Apr 2011 - Mar 2012

4

5

1

2

3

17

MUMSS: I nvestment banking business unit (2)League t ables

z Maint aining t op share in bond underw rit ing

z Moved up from f ift h t o third in equity underw rit ings due t o w inning lead managermandate for large scale I POs

z Leapt int o t hir d place in M& A deals (announced base)

(Source) Thomson Reuters (data compiled by Mitsubishi UFJ Morgan Stanley)

*1 Includes Japanese Straight Bonds, Ex-FILP Agency Bonds ( incl. Expressway company's bonds ) and Municipal Bonds Related. Based on lead manager's credit

*2 Mitsubishi UFJ Morgan Stanley includes domestic offerings of Japanese issuers underwritten by Morgan Stanley MUFG Securities as well asglobal offerings of Japanese issuers underwritten by Morgan Stanley. Based on underwriting amount

*3 Any Japanese involvement announced including property acquisitions. Mitsubishi UFJ Morgan Stanley includes deals advised by Morgan Stanley

(Source) Thomson Reuters (data compiled by MUMSS)

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18

MUMSS: I nvestment banking business unit(3)Morgan Stanley collaborat ion

Main result s of collaboration w it h Morgan StanleyMain result s of collaboration w it h Morgan Stanley

z Successfu lly w on several large mandates t hrough collaborat ion w it h Morgan St anley

z I n cross-border M&A deals No.1 in FY2012 H1 league tables. Due t o large dealby ot her companies in FY2012 Q3* , ranked No.6 as of Dec 2012

Equity

zAdvised DENTSU in t he acquisit ion ofAegis Group

Deal Value: approximately ¥395.5 bn

Fully utilized Morgan Stanley’s global

expertise< Cross border deals> (Apr-Dec 2012)

(Source) Thomson Reuters (data compiled by MUMSS)

zJAL I PO – Domest ic and overseasbookrunner

Deal value: approximately ¥660 bn

World’s largest airline IPO in history

Japan’s largest privatization IPO sincebook building method was introduced inSep 1997

MUMSS and MSMS(MS) jointly involvedin bookrunning both the domestic and

overseas tranches

Financial products intermediation salesthrough collaboration with BTMU

M&A

Rank FA #Amount

( bn)

Share

(% )

1 Mizuho FG 27 2,628.5 37.7

2 Deutshe Bank AG 10 2,060.0 29.5

3 Nomura 25 1,969.8 28.2

4 Rothschild 9 1,963.4 28.1

5 Citi 5 1,827.3 26.2

6 MUMSS 22 1,697.9 24.3

16 Sumitomo Mitsui Financial Group 8 395.0 5.7

17 Daiwa Securities Group 11 338.9 4.9

* SOFTBANK’s acquisition of Sprint Nextel : ¥1,584.6 bn(Source) Thomson Reuters

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51.143.8

36.7

(80.2)

44.238.7

54.5

(100.0)

(50.0)

0.0

50.0

100.0

FY09

H1

FY09

H2

FY10

H1

FY10

H2

FY11

H1

FY11

H2

FY12

H1

Bonds/Exchanges, othersStocksNet trading income + net interest income

19

MUMSS: Global market business unit (1) Resul t s

z After losses in FY2010 H2, returned to business model based on custom er business

z Trading business based on custom er f low operates as core businessz I ncorporat ion of ext ernal advice, risk governance radically reconsidered and risk

management framew ork st rengthened

Market presenceMarket presenceTrading income and lossTrading income and loss

z Ranked overal l No. 1 in JGB auct ions

Ranked No.1 for three consecutive periods(FY2011 H1, H2, FY2012 H1)

(Apr–Sep 2012)< JGB auction result s>

(Source) Ministry of Finance press release

(¥bn)

Rank Financial inst i t ut ion

1 MUMSS

2 Nomura Securities

3 Mizuho Securities

4 Deutshce Securities

5 BTMU

6 Daiwa Securities

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, 85.2%

MUMSS

14.8%

20

MUMSS: Global market business unit (2) Transact ions share

z Market presence grow ing steadily due to fu rt her focus on customer f low business

Transact ions shareTransact ions share FY2012 H1)FY2012 H1)

(Source) Created by MUMSS based on data from JSDA

(Source) Created by MUMSS based on data from TSE

Change in shareChange in share

P u b l i c an d C or p or a t eB on d s

P u b l i c an d C or p or a t eB on d s

E q ui t i e s

E q ui t i e s ( w

i t h d om e s t i c i n s t i t u t

i on s * )

( w

i t h d om e s t i c i n s t i t u t

i on s * )

(Excl. inter-dealer transaction)

Overall market volumeapprox. ¥1,006 tn

MUMSS

10.7%

Overall TSE market volumeapprox. ¥18 tn*

(TSE 1st section + 2nd section + Mothers)

* Life and non-life, city & regional banks, trust banks andinvestment trusts on TSE definition

14.8%

15.4%

14.2%

12.5%12.3%

10%

12%

14%

16%

FY10H1

FY10H2

FY11H1

FY11H2

FY12H1

10.2%

9.6%

10.7%

8.6%

9.3%

8%

10%

12%

FY10H1

FY10H2

FY11H1

FY11H2

FY12H1

7/29/2019 02-10-13 MUFG Strategy Q3


21

Private banking st rategy

z I n Dec 2012 Mit subishi UFJ Merr ill Lynch PB Securit ies w as made a 100% subsidiary of

MUFGz Fur t her strengthen Private bank ing serv ices to MUFG’s high net w ort h cust omer base

BeforeBefore AfterAfter

MUFG

BTMU MUSHD

Mit subishi UFJ

Merril l LynchPB Secur it ies

Merrill LynchJapan Securities

Bank of AmericaMerrill Lynch

49.02% 41.18% 9.80%

MUMSS

(FY2011 results) Value of deposited assets : ¥1.8 tnNet operating revenue : ¥25.0 bn

Ordinary income : ¥11.8 bn

MUFG

BTMU MUSHD

Mit subishi UFJ

Merri ll LynchPB Securities

49.0% 51.0%

MUMSS

Maintain business partnership with Bank of America Merrill Lynch for the time being

Focus on further collaboration with BTMU.

Consider collaboration with MUMSS/MorganStanley too

7/29/2019 02-10-13 MUFG Strategy Q3


22

Global st rategy: Main st rategy, BTMU/ MUSHD collaborat ion

z Expand BTMU/ MUSHD collaborat ion and cross-selling based on the framew ork of

MUFG I nt egrated Global Business Group and I nt egrated Global Market s BusinessGroup

z I n pr imary m arkets business collaborate w ith Morgan Stanley and capture BTMU’soverseas cust omers’ direct financing needs

z I n secondary markets business accelerate the unif ication of global markets business,including MUMSS

P r i m

ar y b u

s i n e s s

S e c on d ar y b u s i n e s s

Europe Americas Asia

MUSI MUS(USA)BTMUMUMSS

MorganStanley Morgan

Stanley

MorganStanley

MUS(HK)MUS(SPR)

MUFG I nt egrat ed Global Markets Business Group

Collaboration Collaboration

7/29/2019 02-10-13 MUFG Strategy Q3


3.2

0.0

(0.7)

8.6

(4.8)(5.0)

0.0

5.0

10.0

FY10

H1

FY10

H2

FY11

H1

FY11

H2

FY12

H1

Americas Europe Asia Total

FY10 H1 FY10 H2 FY11 H1 FY11 H2 FY12 H1

(42.7) (12.7) (85.1) (43.9) (41.6)

(6.6) (14.8) (15.2) (10.5) (7.0)

Nomura Holdings

Daiwa Securities Group

23

Global st rategy: Overseas subsidiaries’ performance

zDespite t he deteriorating environm ent from t he European f inancial crisis et c.,posted comparat ively solid result s, based on BTMU/ MUSHD collaborat ion business

zReturned to prof it s in FY2011 H2, also increased prof it s in FY2012 H1

Ordinary income and lossOrdinary income and lossz MUSI

DCM, key to BTMU/MUSHD collaboration,was strong

Customer derivative transactions alsogrowing

z

MUS (USA) Increase in deals as lead manager in

underwriting business through drivingcollaboration with BTMU and UB

z

MUS (HK), MUS SPR Develop DCM and secondary business as

a spoke of MUSI, MUMSS. Achieve stableprofits through strengtheningcollaboration with BTMU

(Note) Accounting period for overseas subsidiaries differ by three months fromMUFG consolidated base. H1:Jan 1-Jun 30, H2: Jul 1-Dec 31

* Income (loss) before income taxes

<Reference>Income and loss in overseas

*

(¥bn)

(Source) Company disclosures

(¥bn)

7/29/2019 02-10-13 MUFG Strategy Q3


Rank Bookrunner Am ount ( EUR MM) Shar e ( % )

1 BNP Paribas SA 14,591 7.9

2 Societe Generale 12,677 6.9

3 Deutsche Bank 11,599 6.5

4 HSBC Holdings PLC 10,290 5.5

5 Credit Agricole CIB 9,865 5.5

6 Barclays 9,217 4.9

7 UniCredit 8,939 4.9

8 RBS 8,362 4.7

9 JP Morgan 7,885 4.3

10 Citi 6,532 3.7

15 MUSI 3,877 2.2

27 Mizuho Financial Group 1,599 0.949 Nomura 114 0.0

Rank Bookrunner Amount ( USD MM) Share (% )

1 JP Morgan 117,503 11.7

2 Bank of America Merrill Lynch 88,030 8.8

3 Citi 81,776 8.2

4 Morgan Stanley 64,810 6.5

5 Goldman Sachs & Co 57,539 5.7

6 Barclays 53,583 5.4

7 Deutsche Bank 40,284 4.0

8 Wells Fargo & Co 33,328 3.3

9 HSBC Holdings PLC 31,560 3.2

10 RBS 27,616 2.8

15 MUS( USA) 9,768 1.0

17 Mizuho Financial Group 7,502 0.7

33 Nomura 1,518 0.237 Sumitomo Mitsui Finl Grp Inc 1,362 0.1

< Americas>

< Europe>

Corporate bondsCorporate bonds bookrunnerbookrunner* Investment Grade

Changes in rankingChanges in ranking

Global st rategy: League t ables

z Firmly m aint ain t op share among Japanese firms due to progress in BTMU/ MUSHD

collaboration

(Source) Thomson Reuters

(Source) Thomson Reuters

24

0

10

20

30

40

50

60

2009 2010 2011 2012(Rank)

MUSI Nomura Mizuho

1

0

10

20

30

40

50

60

70

2009 2010 2011 2012(Rank)

MUS(USA) Nomura DaiwaMizuho SMFG

1

02-10-13 MUFG Strategy Q3

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