MUFG Sales Toolkit6 HSBC Holdings plc 1,350,642 7 Mitsubishi UFJ Financial Group, Inc. 1,240,121 8 Wells Fargo & Company 1,168,310 9 Bank of America Corporation 1,118,936 10 Unicredito

Mitsubishi UFJ Securities (USA), Inc.

A member of MUFG, a global financial group

Demystifying Repo

VICTOR HIRSCH

Director | Rates

PAUL HERMAN

Executive Director | Rates

October 1st, 2015

1

MUFG

Be the world’s most trusted financial group

2

Mitsubishi UFJ Financial Group (MUFG) is one of the world’s leading financial groups offering a diversified range of services including:

Corporate and retail banking, investment banking, and corporate trust.

Strong foundation with over

140,000

employees2

8th largest in the world with

$2.3 trillion

in total assets1

Global network with

2,257

subsidiaries, branches, agencies,

and offices3

A World of Financial Strength

1As of 5 May 2015 2As of July 2014. Source: https://www.unionbank.com/Images/QA-MUFG.pdf 3As of September 2014. Source: MUFG Fiscal 2014 Interim Results Databook

Ratings profile

A

A+

A

A+

A+

A+

Group & Operating Companies

Mitsubishi UFJ Financial Group

Bank of Tokyo-Mitsubishi UFJ

Mitsubishi UFJ Securities Holdings

Mitsubishi UFJ Securities International plc

Mitsubishi UFJ Securities (USA), Inc

Mitsubishi UFJ Trust and Banking Corp.

Moody’s S&P Fitch

A2

A1

A3

A2

-

A1

-

A

-

-

A

A

438

Americas

locations

35

EMEA

locations

1,784

APAC

locations

3

A World of Financial Strength

Loan-to-Deposit Market Cap ($mm)

101,649 72.65%

Common Equity Tier 1

10.72% 12.08%

Tier 1 Total Capital

15.27%

Largest global banks by assets & deposits

Financial key figures and ratios

c.

Bloomberg and MUFG company filings. “Market Cap” as of 29 April 2015 (source: Bloomberg). “Loan-to-Deposit ratio” as of 31 December 2014 (source: Financial

Highlights under Japanese GAAP for 3rd Quarter of Fiscal Year Ending March 31, 2015). “Common Equity Tier 1”, “Tier 1” and “Total Capital” ratios are as of 31

December 2014 (source: MUFG Summary Reports - Risk-Adjusted Capital Ratios). Assets & Deposits as of 5 May 2015 (source: Bloomberg). CDS levels as of 18

March 2015.

55

60

65

70

75

80

85

90

95

100

105

Mid

levels

(b

ps

)

Banks by 5 Year CDS

5-year CDS level vs. global peer group

Rank Bank Assets ($MM)

1 ICBC 3,320,223

2 China Construction Bank Corporation 2,697,447

3 HSBC Holdings plc 2,634,139

4 Agricultural Bank of China 2,573,405

5 JP Morgan Chase & Co. 2,573,126

6 BNP Paribas 2,514,088

7 Bank of China 2,456,968

8 Mitsubishi UFJ Financial Group, Inc. 2,329,591

9 Barclays PLC 2,115,753

10 Bank of America Corporation 2,104,534

Rank Bank Deposits ($MM)

1 ICBC 2,506,138

2 China Construction Bank Corporation 2,077,951

3 Agricultural Bank of China 2,019,106

4 Bank of China 1,753,588

5 JP Morgan Chase & Co. 1,363,427

6 HSBC Holdings plc 1,350,642

7 Mitsubishi UFJ Financial Group, Inc. 1,240,121

8 Wells Fargo & Company 1,168,310

9 Bank of America Corporation 1,118,936

10 Unicredito Italiano SpA 993,197

4

Capabilities

Our focus on business collaboration and client relationships allows us to provide a wide range of products and services.

Mitsubishi UFJ Trust and

Banking Corporation (MUTB)

• Major trust bank in Japan

• Asset management and

administration, real estate,

stock transfer agency services

Mitsubishi UFJ Securities

Holdings Co., Ltd. (MUSHD)

• Global securities franchise

• Capital markets, derivatives,

securities sales & trading,

investor relations, and

corporate advisory

• Global broker/dealer

capabilities

• USD 98+ billion credit

portfolio in the United States

• Relationships with multi-

national companies outside

Japan; Fortune 1000 client

base in the United States as

well as expansion into sub-

investment grade markets

• Largest commercial bank in

Japan

• Deposits, private consulting,

consumer lending

Bank of Tokyo-Mitsubishi UFJ (BTMU)

Mitsubishi UFJ Trust and Banking Corporation (MUTB)

MUFG Union Bank

5

Capabilities: Corporate, Retail, and Investment Banking

Rates Credit Product Structured Product

Treasuries Commercial Paper ABS

Agencies Corporate CP Consumer Credit

Repo ABCP CLOs

Municipals CP Short Corporates

The securities business of MUFG: Short Term Products

Primary market

The Capital Markets Group originates and underwrites debt and equity financing transactions

through our global platform and the Structured Products team provides primary ABS and CLO

services.

Corporate & retail

lending business

MUFG is one of the leading corporate

lending banks with global reach, backed by

its position as Japan’s largest commercial

bank.

Bank of Tokyo-Mitsubishi UFJ

MUFG Union Bank

Mitsubishi UFJ Securities Holdings Co., Ltd.

• Debt capital markets

• Equity capital markets

• Derivative solutions

• Structured products

Secondary market

With markets experience across the globe, the trading desks, sales teams and research

analysts support institutional clients with the distribution of primary products and trade

execution.

• Rates

• Credit

• Equities

• Structured products

• Loan

syndication

• Structured

finance

• Project finance

• Asset finance

• Transaction

banking

6

• Considered Japan’s major trust bank offering high quality total

financial services for a broad range of customers

• Various commercial services to retail clients as well as asset

management, real estate, and stock transfer agency services

to institutional services

• Wholly owned subsidiary of MUFG

• Headquartered in Tokyo, 77 offices worldwide and 11,535

employees

• MUTB has USD 1.5 trillion in Trust Assets

30%

18% 18%

17%

9%

6% 2% Trust Asset Business

Corporate Business

Markets & Global Business

Retail Banking Business

Stock Transfer Agency Business

Real Estate Business

Other

• Retail banking business

• Corporate business

• Trust assets business

• Real estate business

• Stock transfer agency business

• Markets and global business

Banking function

Trust function

Corporate finance

Retail banking

Banking

Trust

Asset management

Asset administration

Real estate brokerage

Stock transfer agency services

Institutional

clients

Households

Business

Institutional

investors

Individuals

Companies

Organisations

Source of cash,

securities, real

estate etc…

Use of cash,

securities, real

estate etc…

Products Products

Services Services

Corporate

clients

Capabilities: Trust Assets

Company overview

Business description

Combining trust & banking functions to service clients

Business portfolio breakdown

Mitsubishi UFJ Trust & Banking Corporation

As of 31 March 2014. Source: MUTB Company Overview

For more information about MUFG and the securities business please see page 18 of this presentation.

7

Repo

8

Repo Overview

Mainly used to borrow cash using securities as collateral

Economically equivalent to an interest-bearing cash loan against securities collateral

The US repo market is composed of 2 segments:

• Bilateral repo

• Triparty Repo

Repo allows one firm to sell a security to another firm with a simultaneous promise to buy the security

back at a later date at a specified price

Repo Market Participants1

9

Why Use Repo?

Holders of Excess Liquidity

Who are the holders of excess liquidity

• Insurance Companies

• Asset Managers

• Pension Funds

• Corporates ~ already de-levered or are cash

rich and running high liquidity ratios

• Banking Institutions ~ institutions that were

less affected by crisis, high deposit bases

Attractions of Funding Trades for holders of

liquidity

• Risk Profile, form of secured lending

• Yield pick up ~ vs current returns on cash depo

• Specifically Tailored Solutions to suit needs ~

size, duration, collateral, structure

• Standardized documentation

Large portfolio holders of

liquid assets

Receivers of Excess Liquidity

Who are the receivers of excess liquidity

• European bank entities, investment banks and

commercial banks

• US Bank broker dealer entities

• International bank entities and securities firms

Attractions of Funding Trades for holders of liquidity

• Address liquidity needs

o Structural ~ duration and diversification

o Outright ~ access for funding markets, illiquid

assets

• Fulfill on-going regulatory requirements

10

Why Use Repo?

Funding Structures

Benefits of Funding Structures

• Secured Credit Risk ~ collateralized to mitigate credit risk, collateral type and haircut parameters are pre-agreed

• Overcollateralization ~ via haircuts

• Specific tailoring to suit needs ~ maturity, collateral type, currency and interest

• Cash Investment Mechanism ~ provides yield pick up vs. cash depo

Structure Types

• Repo ~ bilateral

• Triparty

• Yield enhancement trades ~ European government bonds vs. high grade assets

• Long term repo solutions

• Cross Currency repos

Maturity Types

• Bullet maturity ~ can be bilateral or Triparty with a fixed maturity date

• Extendible ~ trades with the option to extend the maturity date at set agreed intervals

• Evergreen ~ an evergreen trade remains open until either party to the trade wishes to close it out, at which point

the trade declines in maturity from the pre-agreed number of days to zero

11

Repo Group – Funding Structures

One party sells securities with a simultaneous agreement to

buy back at a later date, at the same price plus the repo

interest

Returns ~ buyer of securities invests cash for a set term at

an agreed upon interest rate, the “repo rate”

Maturity ~ typically from overnight to 1 year; longer tenors

can be investigated and can be up to 10 years

Credit Risk ~ in addition to counterparty secured risk, over-

collateralization from haircuts, daily margin

Seller

Seller

Buyer

Buyer

Repo Agreements – Bilateral

Initial Exchange

Final Exchange

Collateral

Cash

Collateral

Cash + Repo Rate

12

Repo Group – Funding Structures

A triparty repo provides additional benefits to both parties, in

particular the Buyer

Triparty Agent ~ independent capacity fulfils role of

custodian, valuation, reporting and daily margining

Collateral ~ Triparty Agent handles substitutions in

accordance with pre agreed collateral criteria, monitoring and

margining on a daily basis

Automation ~ low administration vs bilateral trades

Seller

Seller’s

Triparty

Account

Buyer

Buyer’s

Triparty

Account

Repo Agreements – Triparty

Triparty Repo Agreement

Cash

Collateral

Triparty Agent

Flows shown are the Day 1 Exchange –

flows reverse at Final Exchange

13

Repo Market

Assets Liabilities

Reverse Repo Repo

$ billions % $ billions %

De

ale

r R

ep

o Triparty (total) 305 13% 1,839 54%

exGCF - 0% 1,534 45%

GCF 305 13% 305 9%

Fed - 0% - 0%

Bilateral 1,945 82% 1,576 46%

Dealer Total 2,250 95% 3,415 100%

No

n

de

ale

r

Re

po

Triparty (total) 127 5%

Fed 127 5%

Nondealer Total 127 5%

Grand Total 2,377 3,415

Collateral Composition in the Triparty

Repo Market ($ Billions)1

Outstanding Daily US Repo and Reverse

Repo, by Underlying Segment2

14

Legal Documentation

Repo structured legally as simultaneous agreement between counterparties to engage in a sale of securities on an initial

date, with a repurchase of the securities by the initial seller at a later date

US repo transactions typically documented with:

• SIFMA’s Master Repurchase Agreement

• SIFMA/International Capital Markets Association’s (ICMA) Global Master Repurchase Agreement

• Customized agreement

Generally, terms in repo agreement provide for certain rights of ownership to be “synthetically retained” by the seller

15

Securities Lending

16

Securities Lending Overview

Market practice by which securities are transferred temporarily from one party, a securities lender, to another, a securities

borrower, for a fee

Transfer is secured by collateral which can be cash, another security, or another form of financial commitment

Securities lenders seek out securities lending services in order to obtain incremental revenue

Securities borrowers often engage in such transactions to cover short sales, remedy failed trades, or hedge risks

Borrowed securities may be reused in other securities lending or repo trades

Attributes of securities loan:

• Counterparty

• Securities on loan

• Tenor

• Collateral type

• Haircut

• Lending or rebate fee

In the US, a Master Securities Loan Agreement (MSLA) is typically used to set out legal rights and obligations of parties in

securities lending transactions

17

Securities Lending Market

Lendable Assets Securities on Loan

Lendable Assets and Securities on Loan (As of 1Q 15)1

18

Contact Information

Victor T. Hirsch

Director | Rates

+1 212-405-7475

[email protected]

Paul Herman

Executive Director | Rates

+1 212-405-7478

[email protected]

19

MUFG

Heritage, History, and Structure

20

Heritage

2000

Bank of Tokyo-Mitsubishi, Mitsubishi Trust

Bank and Nippon Trust Bank merged into

Mitsubishi Tokyo Financial Group.

Basic agreement reached on the integration

of Sanwa Bank, Tokai Bank and Toyo Trust

Bank through the establishment of UFJ

Holdings.

2005

MUFG was formed through

the merger of Mitsubishi

Tokyo Financial Group and

UFJ Holdings.

1656

Konoike Money Exchange

(later Sanwa-Bank) was

founded in Osaka.

1927

Koyata Iwasaki founded and

led Mitsubishi Trust among

the rapidly growing Mitsubishi

group companies (electric,

heavy industries etc.) until the

ultimate Mitsubishi Holding

Company was eventually

dissolved after WWII.

1880

Yokohama Specie Bank (later: Bank of

Tokyo) was founded.

Yataro Iwasaki established the Mitsubishi

Kawase-ten, a financial exchange house. In

1885, Mitsubishi took over the management

of the 119th National Bank and formally

entered the financial services industry,

adopting the name Mitsubishi Bank in 1919.

1996

The Mitsubishi Bank, Ltd.

and The Bank of Tokyo, Ltd.

merged under the new

name of Bank of Tokyo-

Mitsubishi, Ltd.

Adapted from http://www.bk.mufg.jp/global/aboutus/origins/index.html

21

Heritage

Mitsubishi Keiretsu

The Mitsubishi Keiretsu is a large collection of independent companies, sharing a common

heritage, and in many cases carrying the Mitsubishi name and logo.

There is no controlling company, rather the individual members own shares in each other and

they will cooperate where practical to do so.

There is a monthly meeting between the top 25 members, of which MUFG provides three, as

well as one of three co-chairmen.

Top 25 members

• Asahi Glass

• The Bank of Tokyo-Mitsubishi UFJ

• Kirin Brewery

• Meiji Yasuda Life Insurance company

• Mitsubishi Corporation

• Mitsubishi Aircraft Corporation

• Mitsubishi Electric Corporation

• Mitsubishi Estate Co.

• Mitsubishi Heavy Industries

• Mitsubishi Materials Corporation

• Mitsubishi Logistics

• Mitsubishi Motors

• Mitsubishi Paper Mills

• Mitsubishi Plastics

• Mitsubishi Rayon Co.

• Mitsubishi Research Institute

• Mitsubishi Shindoh Co.

• Mitsubishi Steel

• Mitsubishi UFJ Trust and Banking

• Mitsubishi UFJ Securities Holdings

• Nikon Corporation

• Nippon Oil Corporation

• NYK Line

• P.S Mitsubishi Construction Co.

• Tokyo Marine & Nichido Fire Insurance

Founded by Yataro Iwasaki in the 19th century

and originally built around the shipping industry,

the Mitsubishi Keiretsu has grown and evolved

over the years to cover sectors as diverse as

aviation, electronics and finance.

While there is no binding obligation to maintain

friendship, the companies have continued to

work together, united by their shared history.

22

Recent history

2008

• MUFG and Morgan Stanley implemented their strategic and capital alliance, and MUFG invested USD 9

billion in Morgan Stanley

• UnionBanCal Corporation was made a wholly owned subsidiary of BTMU

2010

• MUFG bought USD 5.35 billion worth of project-finance assets from Royal Bank of Scotland

2011

• The integrated Global Business (MUFG Global) was established at MUFG

2012

• The Integrated Global Markets Business Group was established at MUFG alongside the existing four

integrated business groups for Retail Banking, Corporate Banking, Global, and Trust Assets

2013

• BTMU took a majority stake in Bank of Ayudhya Public Company Limited (Krungsri), Thailand’s fifth

largest bank in terms of assets, loans and deposits1

2014

• UnionBanCal Corporation and Union Bank were renamed as MUFG Americas Holdings Corporation and

MUFG Union Bank, N.A., respectively

2015

• Mitsubishi UFJ Asset Management Co., Ltd. and KOKUSAI Asset Management Co., Ltd. merged to form

Mitsubishi UFJ Kokusai Asset Management Co., Ltd.

MUFG remained strong through the financial crisis and has continued to use strategic acquisitions to grow and

broaden its global reach.

Adapted from MUFG Corporate Review 2014 1Source: Bank of Ayudhya Public Company Limited Factsheet

23

Organizational Structure

24

The Securities Business of MUFG

Five key business lines:

Capital Markets

Credit

Rates

Equities

Structured Products

25

Mitsubishi UFJ Securities

Investment banking platform

U.S. (250+ professionals)

• Capital markets team of 44

professionals providing debt

capital markets (DCM) & equity

capital markets (ECM) services

• Full service institutional sales and

trading team of 92 professionals

covering credit, US interest rates,

repos and other related products

• Structured products team of 13

professionals providing primary

and secondary services in ABS

and CLO products

• An experienced capital

markets team of 41

professionals providing DCM

and derivative solutions to

EMEA issuers

• Full service institutional sales

and trading team serving the

equity, rates, repo, convertible

bond and credit markets

• Dubai: Capital markets

origination team serving issues

from the Middle East

• Full service sales and trading

team of 48 professionals

providing Asian equity, credit,

rates and structured product

• Top capability in debt capital

markets, supported by a strong

research platform

• Sydney: Capital markets

service provided across

Australia and New Zealand

New York

London

Hong Kong

Singapore

San Francisco

Dubai

Sydney

Houston

Tokyo1 Beijing3 Geneva2

1 Mitsubishi UFJ Securities Holdings & Mitsubishi UFJ Morgan Stanley Securities 2 Mitsubishi UFJ Wealth Management Bank 3 Representative office

EMEA (600+ professionals) APAC (100+ professionals)

• Global integrated securities

platform offering an

enhanced suite of products

to meet the needs of the

MUFG client base

• Five key business lines:

capital markets, credit, rates,

equities and structured

products

• Institutional sales force in

each of the key global

financial centres with access

to retail investors in Japan

and the US via MUFG Union

Bank

Business description

• Strategic partnership and

capital alliance with Morgan

Stanley (22.4% stake in Morgan

Stanley)

• Mitsubishi UFJ Morgan Stanley

Securities (MUMSS) provides

investment banking, sales and

trading, and wealth

management capabilities

• Through MUMSS, the global

platform has access to the

Japanese market

Japan (4,600+ professionals)

26

Danone

EUR 1.3 billion

FRN due 2020

1.125% Notes due 2025 Bookrunner

January 2015

Daimler Finance North

America

USD 3 billion

FRN Notes due 2017,

2018

1.650% Notes due 2018

2.250% Notes due 2020 Joint Bookrunner

February 2015

AusNet Services

EUR 560 million 1.500% Notes due 2027

Joint Bookrunner

February 2015

Golden Agri-Resources

SGD 125 million

5.5% Note due 2018 Joint Bookrunner

April 2015

Valero Energy

Corporation

USD 1.25 billion 3.650% Notes due 2025

4.900% Notes due 2045

Joint Bookrunner

March 2015

BP

EUR 2.5 billion 1.109% Notes due 2023

1.573% Notes due 2027

Joiint Bookrunner

February 2015

Africa Finance Corp.

USD 750 million

4.375% Notes due 2019 Joint Bookrunner

April 2015

IBM

USD 2 billion

FRN Notes due 2018

1.125% Notes due 2018 Joint Bookrunner

February 2015

Actavis Technology, Inc

USD 5.1 billion 5.50% Mandatory

Convertible

Co-Manager

February 2015

Actavis plc

USD 4.2 billion

Follow-on Offering

Co-Manager

February 2015

Derivative solutions

MUFG’s Derivative Solutions Group (DSG) is integrated within the

Capital Markets department and provides risk management solutions

for our corporate client base.

DSG offers both fixed income and equity solutions, and during the

past four years, MUFG has established itself as a top five market

counterparty in volume in USD swaps.

Capital Markets

Debt capital markets

MUFG is consistently a global leader in debt capital market

transactions across a variety of currencies. DCM leverages MUFG’s

strong banking relationships with corporates across industries and

services these clients’ fixed income needs.

The DCM group works with investment grade and high yield

companies to offer bespoke services and direct multi-currency access

to the international capital markets.

Equity capital markets

MUFG is a key player in the global equity and equity-linked

businesses, underwriting and executing initial public offerings of

common stock, follow-on offerings, convertible securities and flexible

offerings of equity securities.

MUFG’s global distribution platform reaches not only institutional

clients, but actively penetrates the retail marketplace for equity

offerings, with retail placement consistently exceeding underwriting

commitment.

Highlighted global capital markets transactions

27

MUFG Select Commercial Paper Mandates

28

Sales and trading

The Credit Trading & Sales team operates on a global platform with trading desks in New York, London, and

Hong Kong. Our international presence allows us to service clients globally and seamlessly over each 24-hour

trading day. MUFG has trading expertise which spans all the major liquid corporate and bank sectors. Currently,

the international securities business covers global investment grade, high yield, and emerging markets credit.

Our significant presence in electronic trading ensures consistent and timely execution of all client corporate bond

trades. The team also works closely with the Capital Markets Group to distribute primary products.

We pride ourselves on

providing high quality

market-making services to

clients in the international

credit markets.

Our trading desks, sales

teams, and research

analysts are organised

around supporting the new

issue franchise and our

investor clients.

Number of traded clients

Research / strategy

The Credit Research and Strategy team follow a wide range of debt issuers in both corporate and financial

markets. Analysis is distributed daily to counterparties in Europe, Asia, and the Americas. MUFG credit

strategists in Europe, Asia and North America maintain active views on over 500 debt issuing corporates and

financial institutions, including both investment grade and high yield issuers.

Credit

0

200

400

600

800

1000

1200

1400

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2009 2010 2011 2012 2013 2014 2015

As of 31 January 2015.

29

Rates

Sales and trading

The Rates Sales & Trading Group operates on a global

platform with trading desks in New York, London, and Hong

Kong. The team operates a multi-currency swaps desk with

quantitative and execution capability, with activity in G4

swaps and volatility products.

The desk has a host of services in cash bond desk trading in

government, agency, supranational and sovereign debt.

The Rates team also offers bespoke derivatives to enable

client-tailored solutions for corporate clients hedging through

the Derivatives Solutions Group.

The Repo desk, with wide-ranging market access, provides

funding support and collateral optimisation for the rates

business through an effective synergy.

The Rates Trading team has extensive expertise in multi- currency trading in a vast range of interest rate products including swaps,

bonds, options, and repo.

The Rates Sales team provides coverage to a variety of accounts ranging from institutional asset managers to leveraged funds, pensions,

and central banks.

Volatility

• Caps

• Floors

• Swaptions

Repo

• Buy/sell back

• Securities lending

• Financing solutions

• Triparty/bilateral

Bonds

• JPY – JGBs, Bills Euro-Yen

• USD – UST, agencies,

supranational/sovereigns

• EUR – European

governments

• GBP – Gilts

Swaps

• Vanilla interest rate

swaps

• Currency swaps

• Basis swaps

• Structured/amortizing

swaps

Product Coverage

30

Convertible bonds

With teams in London, Hong Kong, and New York, we provide high quality primary distribution for the capital

markets’ business as well as secondary execution on a wide variety of convertible bonds in multiple regions.

Our strength in trading is complimented by provision of insightful research covering equities, economics, and

strategy.

Our equities business

incorporates sales, trading,

and research capabilities

across three broad product

groups: cash equities,

convertible bonds, and

equity derivatives.

In addition to being a global

service leader in the

Japanese equity market, the

group also provides

investors with access to

other Asian, US, and

European markets.

Equity derivatives

We provide both pricing and trade management capabilities for our equity solutions business, assisting corporate

customers with their financing and hedging needs using tailored equity derivatives.

Equities

Cash equities

We provide Japanese corporates with easy access to other equity markets across the globe.

In the US we work closely with BTMU and Union Bank clients to execute corporate share buy back programmes.

We also have the capability to assist clients with at-the-market stock issuances, providing maximum flexibility

with no minimum volume restriction.

We execute and trade Asian equities, primarily for Japanese institutional investors, while offering excellent

corporate access via our extensive Asian bank network.

31

Structured Products

The Structured Products & Sales Group offers our clients a variety of structured products and tailor made financing and hedging

solutions. It operates in all regions across and is active across all major asset classes.

Structured Products

& Sales

Japan

Structured Products

Americas

Structured Financing &

Structured Products

This new team provides

tailor made solutions to

financial institutions and

investors, and

specialises in tailor

made financing

solutions across asset

classes

EMEA

Structured Financing &

Structured Products

The Japan Structured

Business group

structures cross asset

class investment

products distributed in

Japan. They arrange

Uridashi and private

placements issued

internally or by third

parties

Asia (ex. Japan)

Structured Financing &

Structured Products

The Asian Structured

Business group

provides cross asset

class investment

products to Asian

investors, as well as

tailor made financing

and hedging solutions

Americas

Securitization

The US Structured

Business group was

established in 2013 to

focus on originating,

structuring and

distributing ABS and

CLO transactions. It is

already a leading

arranger in the US.

The European

Structured Business

group provides cross

asset class investment

products to European

investors, as well as

tailor made financing

solutions across asset

classes

Structured Trading

Our Structured Trading desk plays an integral role in our Structured Products strategy by providing our international clients with structured

interest rates, FX, credit as well as cross asset class trading capabilities

32

MUFG Structured Products Team

• MUFG’s Structured Products Group is focused on

originating, structuring and distributing ABS and CLO

transactions for issuers

• Headed by Tricia Hazelwood, the group has

expanded recently through the hiring of several

key industry professionals

• The Structured Products Group’s mandate is to

focus on:

• Prime Auto - Loan, Lease, Dealer Floorplan

• Other Auto - Fleet Lease, Rental Car

• Credit Card - Bank, Retail

• Equipment - Loans and Leases for Small

and Large Ticket Equipment, Transportation,

Construction/Agricultural, Dealer Floorplan

• Big Metal - Aircraft, Container, Railcar

• Other - Utility/Energy, Cell Tower, Contract

Monetization's, Future Flows (i.e., DPR’s),

Stranded Cost, Equipment Installment Plans,

Tax Credits, Timeshare, Whole Business

• To date, MUFG has lead managed 22 ABS

transactions and 5 CLO transactions as well as

co-managed over 80 ABS transactions and 12

CLO’s

• MUFG will be an active lead and co-manager in

future ABS and CLO transactions

• The Structured Products team is comprised of

professionals who have tremendous experience in

structuring and distributing ABS and CLO products

2014-2015 YTD

Lead Managed Platforms

33

• Credit Strategy – follows a wide range of debt issuers in corporate and

financial sectors, in developed and emerging markets

• Equity Research – offers unparalleled coverage of Japan’s equity markets

• Economic Research – analyses the global economic outlook, focusing on

markets in which we are active

Research and strategy

Insight and analysis on various markets across a number of geographies.

Achievements

• Brendan Brown voted best forecasting economist for Japan in 2011

(Bloomberg LP)

• US rates strategist John Herrmann ranked number two among

forecasters of US economy and interest rates (Bloomberg LP)

• 11 Japanese equity analysts who are ranked in the top 5 of their sectors

(Nikkei Veritas, March 2014)

Our research and strategy website is an online portal enabling clients to

view all MUS fixed income/macroeconomic and MUMSS equity research.

https://research.musi.com

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Disclaimer

DISCLAIMER

This presentation has been prepared by a subsidiary of Mitsubishi UFJ Financial Group, Inc. (“MUFG”) which carries on a securities related business.

Legal entities and branches

The securities related businesses within the MUFG (together referred to in this presentation as “Mitsubishi UFJ Securities”) are: (1) MITSUBISHI UFJ SECURITIES INTERNATIONAL PLC (“MUSI”) which is authorised in the United Kingdom by

the Prudential Regulation Authority (“PRA”) and regulated by the Financial Conduct Authority (“FCA”) and the PRA (FS Registration Number 124512). MUSI has a branch office that is registered at Level 3, East Wing, The Gate, Dubai

International Financial Centre, PO Box 506894, Dubai, UAE (“Dubai Branch”). The Dubai Branch is authorised to operate in the Dubai International Financial Centre (“DIFC”) as a Non-DIFC Entity (Commercial License Number CL1656) and is

regulated by the Dubai Financial Services Authority (Reference Number F002623); (2) MITSUBISHI UFJ SECURITIES (USA), INC. (“MUS(USA)”) which is registered in the United States with the Securities and Exchange Commission (“SEC”)

and regulated by the Financial Industry Regulatory Authority (“FINRA”) (SEC# 8-43026; CRD# 19685); (3) MITSUBISHI UFJ SECURITIES (HK), LTD (“MUS(HK)”) which is incorporated in Hong Kong, licensed under the Hong Kong Securities

and Futures Ordinance and regulated by the Hong Kong Securities and Futures Commission (Central Entity Number AAA889). MUS(HK) has an office in Australia, Mitsubishi UFJ Securities (HK), Limited ARBN No. 169 329 453, which is

registered at Suite 16 & 52, Level 36 Gateway, One Macquarie Place, Sydney, Australia. In respect of the financial services provided to wholesale clients in Australia, MUS(HK), MUSI, MUS(USA) and Mitsubishi UFJ Securities (Singapore),

Limited (“MUSS”) are each exempt from the requirement to hold an Australian financial services licence under the Corporations Act 2001 (“Corporations Act”) under the Australian Securities and Investments Commission (“ASIC”) Class Order

Exemption CO 03/1099, CO 03/1103, CO 03/1100 and CO 03/1102, respectively. Each of MUS(HK), MUSI, MUS(USA) and MUSS are regulated under the laws of Hong Kong, the United Kingdom, the United States and Singapore respectively,

which differ from Australian laws; and (4) MUSS which is licensed as an approved merchant bank by the Monetary Authority of Singapore.

General disclosures

This presentation is for information purposes only and should not be construed as investment research or a solicitation of any offer to buy or sell any security, commodity, futures contract or related derivative (hereafter “instrument”) or to

participate in any trading strategy. This presentation does not constitute a personal recommendation and does not take into account the individual financial circumstances, needs or objectives of the recipients. Recipients should therefore seek

their own financial, legal, tax or other advice before deciding to invest in any of the instruments mentioned in this presentation.

Certain information contained in this presentation has been obtained or derived from third party sources and such information is believed to be correct and reliable but has not been independently verified. Mitsubishi UFJ Securities does not make

any guarantee, representation, warranty or undertaking, express or implied, as to the fairness, accuracy, reliability, completeness, adequacy or appropriateness of any information or comments contained in this presentation. Furthermore the

information may not be current due to, among other things, changes in the financial markets or economic environment. Mitsubishi UFJ Securities has no obligation to update any such information contained in this presentation.

This presentation is not intended to forecast or predict future events. Past performance is not a guarantee or indication of future results. Any prices provided herein (other than those identified as being historical) are indicative only and do not

represent firm quotes as to either price or size.

This presentation is proprietary to Mitsubishi UFJ Securities and may not be quoted, circulated or otherwise referred to without our prior written consent. Notwithstanding this, Mitsubishi UFJ Securities shall not be liable in any manner

whatsoever for any consequences or loss (including but not limited to any direct, indirect or consequential loss, loss of profits and damages) arising from any reliance on or usage of this presentation and accepts no legal responsibility to any

investor who directly or indirectly receives this material.

35

Disclaimer

Country and region specific disclosures

This presentation is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or is located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use

would be contrary to any law, regulation or rule.

In this regard, please note the following in relation to the jurisdictions in which Mitsubishi UFJ Securities has a local presence:

United Kingdom / European Economic Area (EEA): This presentation is intended for distribution to a “professional client” or “eligible counterparty” as those terms are defined in the rules of the FCA and PRA. In other EEA countries, this

presentation is intended only for persons regarded as professional investors (or equivalent) in their home jurisdiction. This presentation has been prepared in accordance with MUSI’s organisational and administrative arrangements for managing

conflicts of interest. Such arrangements include policies which set out guidelines relating to the production of research including (but not limited to) restrictions on access to information, personal dealing and inducements.

United States of America: This presentation, when distributed by MUS(USA), is intended for Institutional Investors (“Institutional Accounts” as defined by FINRA Rule 4512(c)). When distributed by a non-US affiliate of MUS(USA), this

presentation is intended for distribution solely to “major U.S. institutional investors” or “U.S. institutional investors” pursuant to Rule 15a-6 under the U.S. Securities Exchange Act of 1934, as amended. Securities referenced in this presentation

may have been underwritten by MUS(USA) and/or its affiliates. Nothing in this presentation should be considered an offer or solicitation of an offer to buy or sell securities or any other financial product or a commitment of any kind with respect to

any transaction.

IRS Circular 230 Disclosure: Mitsubishi UFJ Securities does not provide tax advice. Accordingly, any discussion of U.S. tax matters included herein (including any attachments) is not intended or written to be used, and cannot be used, in

connection with the promotion, marketing or recommendation by anyone not affiliated with MUS(USA) of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties.

Hong Kong: This presentation is only intended for distribution to a “professional investor” as that term is defined in the Securities and Futures Ordinance and should not be passed onto any other person.

Singapore: This presentation is only intended for distribution to an "institutional investor", "accredited investor" or "expert investor" as those terms are defined under regulation 2 of the Financial Advisers Regulation. It is solely for the use of such

investors and shall not be distributed, forwarded, passed on or disseminated to any other person. Investors should note that, as a result of exemptions that apply when this presentation is distributed to "accredited investors" and "expert

investors", MUSS is exempt from complying with certain requirements under the Financial Advisers Act, including section 25 of the Financial Advisers Act (which requires a financial adviser to disclose all material information on certain investment

products), section 27 (which requires a financial adviser to have a reasonable basis for making recommendations on investments) and section 36 (which requires a financial adviser to disclose any interests that it holds in securities that it

recommends).

Japan: This Note, when distributed by Mitsubishi UFJ Securities affiliates located outside of Japan, is intended for distribution in accordance with Article 58-2 of the Financial Instruments Exchange Act 1948 (“FIEA”) i) to a “Financial Instruments

Business Operator” engaged in “Securities-Related Business” as defined in the FIEA or ii) to the government, the Bank of Japan, a qualified financial institution defined in Article 209 of the Cabinet Office Ordinance Concerning Financial

Instruments Business, Etc., or an Investment Manager. When distributed by Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., this Note is intended for distribution to a “Professional Investor (tokutei-toushika)” as defined in the FIEA.

United Arab Emirates: This presentation is only intended for distribution to a “Professional Client” or “Market Counterparty” as those terms are defined under the rules of the Dubai Financial Services Authority and only a person meeting the

criteria for these terms should act upon this presentation.

Australia: This presentation is only intended for distribution to persons in Australia who are sophisticated or professional investors for the purposes of section 708 of the Corporations Act of Australia (“Corporations Act”), and are wholesale

clients for the purposes of section 761G of the Corporations Act. This Note is not intended to be distributed or passed on, directly or indirectly, to any other class of persons in Australia.

Other jurisdictions:

Mitsubishi UFJ Securities also relies on local registrations or regulatory exemptions in order to undertake certain securities business in other countries. In Thailand, MUSI has a derivatives dealer registration with the Securities and Exchange

Commission, Thailand. In Canada, MUSI and MUS(USA) each operate under an international dealer exemption registered with the securities regulators. MUSI operates under the exemption in Alberta, Quebec, Ontario, British Columbia and

Manitoba. MUS(USA) operates under the exemption in all Canadian Provinces and Territories.