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Mit subishi UFJ Secur it ies Holdings
Business St rategy
January 2013
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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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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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Overview of Mit subishi UFJ
Secur it ies Holdings
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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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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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(¥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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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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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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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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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
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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
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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
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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)
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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