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Analyst Meeting Analyst Meeting Presentation Material Presentation Material November 28, 2008 Chuo Mitsui Trust Group Agenda . Management Direction . Status of Profit . Status of Assets . Strategic Business Operations .
1
"CMTH" : Chuo Mitsui Trust Holdings, Inc. "CMTB"
: The Chuo Mitsui Trust & Banking Co., Ltd.
"CMAB" : Chuo Mitsui Asset Trust & Banking Co., Ltd. "CMTB+CMAB" : Combined totals for "CMTB" and "CMAB", Non-consolidated
2
3
Management Direction
Concentration on high margin & high growth areas within strategic businesses
4
5
* Excludes securitization profits which are posted upfront when securitization takes place, and amortization costs which are posted in the following years
Revenue Trend (CMTB+CMAB, non-consolidated)
*
129.6 124.6 136.7 121.4 124.5 131.4 141.5 125.6 50 100 150 1H.FY3/06 1H.FY3/07 1H.FY3/08 1H.FY3/09
Gross operating profit Gross operating profit excluding effects
～ ～
(Yen bn)
6
5% 2% 1% 5% 5% 6% 9% 10% 11% 12% 8% 19% 15% 2% 3% 4% 11% 15% 18% 40% 9% 15% 23% 16% 19% 3% 2% 2% 1% 7% 2% FY3/03 1H.FY3/08 1H.FY3/09
Asset Management Businesses Banking related Businesses
Strategic Businesses
Banking related Businesses
Conventional Banking Businesses
Breakdown of gross operating profit by business segment (CMTB+CMAB, non-consolidated)
Recomposition of Revenue Structure
etc.
businesses
& Annuity insurance
businesses
Sum of loans to individuals, investment trust & annuity insurance, and real estate 66% 37% 75% １ ６ ％ ４ ６ ％ ４ １ ％
7
*1 Before trust a/c credit costs *2 Effective net operating profit before trust a/c credit costs & provision(reversal) of general reserve
1H.FY3/09 Highlights & FY3/09 Outlook
a b c:b-a d e f:e-d (Yen bn)
Actual Outlook
CMTB+CMAB, non-consolidated 1H.FY3/08 1H.FY3/09 Change % FY3/08 FY3/09 Change % Gross operating profit *1
136.7 121.4 (15.2) (11)% 265.2 264.0 (1.2) (0)%
Operating expenses （ minus）
55.1 59.0 3.8 7% 110.8 117.0 6.2 6%
[Net periodic retirement benefit cost] （ minus）
[(3.8)] [(0.2)] [3.6] [(7.7)]
Pre-provision profit *2
81.5 62.4 (19.1) (23)% 154.4 147.0 (7.4) (5)%
Net other profit (loss) and other
(17.8) (35.0) (17.2) (27.5) (45.0) (17.5)
[Losses on devaluation of stocks]
[(1.6)] [(16.2)] [(14.6)] [(7.4)] [(16.0)] [(8.6)]
Ordinary profit
63.7 27.3 (36.3) (57)% 126.8 102.0 (24.8) (20)%
Extraordinary profit
3.0 9.8 6.8 8.1 11.0 2.9
Deferred income taxes （ minus）
20.6 15.7 (4.9) 42.8 38.0 (4.8)
Net income
40.5 17.1 (23.4) (58)% 81.9 67.0 (14.9) (18)%
Credit Costs （ minus）
16.9 0.3 (16.6) 9.5 10.0 0.5
CMTH, consolidated 1H.FY3/08 1H.FY3/09 Change % FY3/08 FY3/09 Change % Ordinary profit
64.0 26.9 (37.1) (58)% 125.3 100.0 (25.3) (20)%
Net income
35.5 13.7 (21.7) (61)% 71.8 60.0 (11.8) (16)%
Dividend per share
¥7
8
Factors of Increase / Decrease in Gross Operating Profit（ CMTB+CMAB, non-consolidated ）
Conventional Banking Strategic Businesses Businesses
Priority Segments
2.1 Profit increase factor Profit decrease factor 1.0 (8.7)
121.4
1H.FY3/08 1H.FY3/09
136.7
(2.7) (6.8) 6.5 (6.5) △152 （ Yen bn）
Loss on CDO (3.1)
(15.2)
Corporate loans, etc. Bond investments, etc. Loans to individuals Investment trust & Annuity insurance Real estate Alternative investments Others
9
17.2 14.3 22.3 26.4 29.9 31.3 30.1 30.0 49.6 47.8 55.1 59.0 2.4 2.6 2.1 2.4 20 40 60 1H.FY3/06 1H.FY3/07 1H.FY3/08 1H.FY3/09 (Yen bn) Personnel Non-Personnel Tax
In 1H.FY3/09, OHR increased YoY, due to both the decreased gross operating profit and increased
Operating Expenses (CMTB+CMAB, non-consolidated)
OHR
Trend of Operating Expenses
（ CMTB+CMAB, non-consolidated ）
Trend of OHR *
（ CMTB+CMAB, non-consolidated ）
Operating expenses
Policy of restraining total amount of operating expenses ⇒Excluding the increase in retirement benefit cost,
* operating expenses / gross operating profit Net periodic retirement benefit cost within personnel expense (0.2) (3.8) (9.2) (5.5)
(3.7) +5.3 +3.6
3 8 . 3 % 3 8 . 4 % 4 . 3 % 4 8 . 6 %
% 1 % 2 % 3 % 4 % 5 % 1 H . F Y 3 / 6 1 H . F Y 3 / 7 1 H . F Y 3 / 8 1 H . F Y 3 / 9
( % )
(1.7) +7.2 +3.8 Decreasing factor
Increasing factor
10
Revenues by Business Unit
(Reference) （ Yen bn） a b c:b-a d e f:e-d g:e-b h:g-b Actual Revised Outlook Revised Outlook Change from CMTB+CMAB, non-consolidated 1H.FY3/08 1H.FY3/09 Change % FY3/08 FY3/09 Change % 2H.FY3/09 1H.FY3/09 Asset management businesses
65.5 50.2 (15.3) (23)% 121.9 110.0 (11.9) (10)% 59.7 9.5 25.0 18.2 (6.8) (27)% 45.2 40.5 (4.7) (11)% 22.2 3.9
Real estate
16.8 10.2 (6.5) (39)% 31.7 28.5 (3.2) (10)% 18.2 7.9
Pension
13.4 12.9 (0.5) (4)% 26.6 27.0 0.3 1% 14.0 1.0
Stock transfer agency
7.4 7.3 (0.1) (1)% 13.6 12.5 (1.1) (9)% 5.1 (2.1)
Banking related businesses
71.1 71.2 0.0 0% 143.2 154.0 10.7 7% 82.7 11.5
Conventional banking businesses
34.0 41.5 7.5 22% 77.5 86.0 8.4 11% 44.4 2.8
[Corporate loans, etc.]
[22.2] [23.2] [1.0] [4%] [43.3] [49.0] [5.6] [13%] [25.7] [2.4]
[Bond investments, etc.]
[11.8] [18.3] [6.5] [55%] [34.2] [37.0] [2.7] [8%] [18.6] [0.3]
Loans to individuals
19.6 21.7 2.1 11% 39.5 45.0 5.4 14% 23.2 1.4
Real estate asset finance
4.5 4.8 0.3 8% 9.9 10.0 0.0 1% 5.1 0.2
Alternative investments
9.6 0.9 (8.7) (91)% 9.5 9.0 (0.5) (6)% 8.0 7.1
[Investment return]
[9.6] [4.0] [(5.6)] [(58%)] [14.5] [12.0] [(2.5)] [(18%)] [7.9] [3.9]
[CDO loss disposition]
[-] [(3.1)] [(5.0)] [(3.1)] [-] [3.1] 3.2 2.0 (1.1) (36)% 6.6 4.0 (2.6) (40)% 1.9 (0.1)
Gross operating profit
136.7 121.4 (15.2) (11)% 265.2 264.0 (1.2) (0)% 142.5 21.0
Investment trust & Annuity insurance Other banking related businesses
11
12 291.7 283.1 165.2 89.1 61.5 76.0 116.6 410.6 184.9 94.9 71.8 82.8 79.5 21.6 7.0% 4.9% 1.5% 1.7% 1.7% 1.8% 2.8%
250 500 750 3/03 3/04 3/05 3/06 3/07 3/08 9/08 (Yen bn） 0% 2% 4% 6% 8%
Claims under High Risk & (Virtual) Bankruptcy Claims under Close Observation NPL Ratio
Balance of NPL and NPL Ratio
(CMTB, non-consolidated, Bank a/c + Trust a/c)
NPL decreased steadily Due to the downgrades of loans to Lehman Brothers Group (JPY 15.0bn) and some real estate related loans, claims under high risk & (virtual) bankruptcy increased
702.3 468.0 260.1 160.9 144.3 155.6 138.2
As of
13
3 5 % 8 %
5 7 % 3 5 % 8 % 2 3 % 2 % 2 8 % 2 %
% 2 % 4 % 6 % 8 % 1 %
当社
2 8 % 4 3 % 2 % 3 % 5 %
国内銀行
High quality loan portfolio leads to limited downside risk
Loans by Industry *１（ As of 9/08） Loans by Size of Borrowers （ As of 9/08 ）
SMEs*9
Real Estate Asset Finance *3
*1. Managerial accounting-basis, CMTB non-consolidated. Balance at period end, post-securitization
*2. Loan providers that apply interest rates in excess of the upper limit set by the Interest Rate Restriction Law (“ Grey Zone” Interest Rates)
*3. Does not include bond-types *4. Annualized rate of pay-out on guarantees by Chuo Mitsui Guarantee in 1H.FY3/09 (based on number
Consumer finance*2：
2％
We have curtailed our exposure to consumer finance companies, including sales finance companies and credit card companies. Ratio of loans to consumer finance companies to total loans: 0.3% Real estate companies ：
8％
Ratio of loans to large companies and their group companies to total loans: 4.8％ Real Estate Asset Finance*3
Loans to Individuals Loss rate*4 on housing loans, which are the main type of loans to individuals: 0.07%
C
s t r u c t i
: 1 %
Ratio of Housing Loans to Total Loans*10 (Comparison of Major Banking Groups） （ As of 9/08）
Companies
Mid-sized companies*8 Large Companies*7 SMEs*9 Others*6 Loans to individuals
*5. Source: Bank of Japan *6. Local governments ＋ Overseas yen loans, Domestic loans transferred overseas *7. Large companies: capital of JPY 1bn or more and with more than 300 employees *8. Mid-sized companies: companies that are not large companies or SMEs *9. SMEs: capital of JPY 300 mn or less or less than 300 employees
9%
*10. Source: Company disclosures
As of 9/08, non-consolidated, post-securitization
Money market dealers, etc.
CMTH*1 Domestic banks total
*5
14% 21% 16% 24% 31% 0% 10% 20% 30% CMTH Ａ Ｂ Ｃ Ｄ
14
0% 6% 17% 36% 23% 32% 64% 103% 0% 50% 100% FY3/02 FY3/03 FY3/04 FY3/05 FY3/06 FY3/07 FY3/08 1H.FY3/09
Credit Costs and Pre-Provision Profit（
CMTB+CMAB, non-consolidated ）
Credit costs decreased steadily
Due to reversal of reserves for possible loan losses for loans to certain borrowers in 1H.FY3/09, credit costs decreased to JPY0.3bn
（ Y e n b n ）
43.9 29.7 65.6 58.3 121.5 168.0 9.5 0.3 177.0 183.0 162.6 189.3 191.1 181.2 62.4 154.4 100 200 300 FY3/02 FY3/03 FY3/04 FY3/05 FY3/06 FY3/07 FY3/08 1H.FY3/09 Credit costs Pre-provision profit Credit costs / Pre-provision profit （ Unit ％）
15
Portfolio without Market Value
As of 9/08 (Yen bn)
Sub-prime Loans and Investments None Others Corporate Loans 128.8 Unlisted Stocks 9.3 Acceptances and Guarantees (Corporate) 2.5 Total 140.8 Portfolio with Market Value
As of 9/08 1H.FY3/09 FY3/08 (Yen bn) Acquisition cost Unrealized gain (loss) Loss disposition Loss disposition Note
Sub-prime Loans and Investments None Others CDOs 10.0
(5.0) Managed synthetic CDO Investment Trusts（ Bond Funds） 9.8 (0.1)
Investment Trusts（ Credit Funds) 24.9 (2.6)
Equity Funds, etc.） 10.9 (1.1)
Foreign Bonds, etc. 377.2 (26.4)
Total 433.1 (30.4) (3.1) (5.2) Foreign Government Bonds 75.9 (0.6) US Agency Mortgage-Backed Securities 546.6 (6.7) Total 622.5 (7.4) Investments mainly to public and corporate bonds, domestic and foreign Investments mainly to bank loans towards US companies
No Exposure to ABS & CDOs backed by Sub-prime Loans
No exposure to sub-prime mortgage loans or “Alt-A” loans Limited exposure to securitized assets, etc. Small impact from unrealized losses
（ *1） No exposure to “Alt-A” loans Credit derivative portion of this CDO is bifurcated, and unrealized loss for the credit derivative portion is JPY8.1bn. Since JPY5.0bn
fiscal year, JPY3.1bn is posted as derivative cost for 1H.FY3/09. （ *2）
（ *1） （ *1） （ *2） （ *2） （ *2） （ *2）
16
17
919.8 1,172.0 1,249.9 1,246.7 1,334.7 868.6 1,058.3 1,250.4 400 800 1,200 1,600 3/06 3/07 3/08 9/08 Investment trust Annuity insurance （ Y e n b n )
1 H . F Y 3 / 8 1 H . F Y 3 / 9 9 . 6 8 . 6 1 8 . 2 1 . 4 1 4 . 6 2 5 . F l
S t
k
With the slump of the stock market, investment trust sales fee decreased. On the other hand, the stock- based fees from the sales balance and the entrusted balance remained at JPY10billion level
Investment Trust & Annuity Insurance related Revenues Investment Trust & Annuity Insurance Balance
＊ Total of Annuity insurance sales fee , Investment trust sales fee and Trust fee & Investment advisory fee for Investment trust
Although flow-based fees decreased sharply, stock- based fees almost remained at the same level as in 1H.FY3/08
(Yen bn)
Investment Trust & Annuity Insurance Sales Amount Breakdown of Investment Trust & Annuity Insurance related Revenue 4 . 3 5 . 3 4 . 7 1 1 . 9 6 . 5 5 . 8 7 . 1 9 . 7 2 5 . 1 8 . 2 9 . 6 7 . 8
1 2 3 1 H . F Y 3 / 7 1 H . F Y 3 / 8 1 H . F Y 3 / 9 （ Y e n b n ） Annuity insurance sales fee Trustee fee & Investment advisory fee for Investment trust Investment trust sales fee
3 4 3 . 8 3 7 7 . 4 1 2 2 . 6 4 4 1 . 1 5 2 . 4 2 3 . 8 1 8 . 2 9 7 . 2 1 2 5 . 3 6 1 H . F Y 3 / 7 1 H . F Y 3 / 8 1 H . F Y 3 / 9 （ Y e n b n ） I n v e s t m e n t t r u s t s a l e s a m
n t A n n u i t y i n s u r a n c e s a l e s a m
n t
As of Breakdown of Investment trust & Annuity insurance related revenues* by “ flow-based” and “ stock-based”
a b c:b-a d e (Yen bn) CMTB+CMAB, non-consolidated Actual Actual Outlook f:e-d Sales Fee 1H.FY3/08 1H.FY3/09 Chg. FY3/08 FY3/09 Chg. Investment trust sales fee
11.9 6.5 (5.3) 20.3 14.0 (6.3)
Annuity insurance sales fee
7.8 7.0 (0.7) 14.2 16.5 2.2
Total
19.7 13.5 (6.1) 34.6 30.5 (4.1)
Trustee Fee & Investment Advisory Fee for Investment Trust Trustee fee
3.2 2.8 (0.3) 6.3 6.0 (0.3)
Investment advisory fee
2.1 1.8 (0.2) 4.2 4.0 (0.2)
Total
5.3 4.7 (0.6) 10.6 10.0 (0.6)
Grand total
25.0 18.2 (6.8) 45.2 40.5 (4.7)
18
Breakdown of Real Estate Revenue Balance of Securitized Real Estate Growth of Real Estate Revenue
Percentage of brokerage fee earned from investor related deals to total brokerage fee
1H.FY3/08： 64% 2H.FY3/08： 53% 1H.FY3/09： 46%
1H.FY3/09 Number of brokerage transactions, especially investor related deals, decreased as funding environment for the investors worsened due to market turmoil. As a result, fees from real estate business decreased by JPY6.5bn YoY
2 , 9 9 9 . 7 4 , 3 1 2 . 7 5 , 1 4 1 . 15 , 2 5 . 7 1 , 2 , 3 , 4 , 5 , 3 / 6 3 / 7 3 / 8 9 / 8
( Y e n b n ）
～ ～
As of
a b c:b-a d e (Yen bn) CMTB, Actual Actual Outlook f:e-d non-consolidated 1H.FY3/08 1H.FY3/09 Chg. FY3/08 FY3/09 Chg. Real estate brokerage fee
13.1 8.0 (5.0) 24.4 23.0 (1.4)
Real estate trust fee
3.6 2.1 (1.5) 7.2 5.5 (1.7)
Total
16.8 10.2 (6.5) 31.7 28.5 (3.2)
1 6 . 1 1 6 . 8 1 . 2 3 . 5 3 . 6 2 . 1 8 . 1 3 . 1 1 2 . 6 1 9 4 2 2 7 9 5 . 1 . 2 . 1 H . F Y 3 / 7 1 H . F Y 3 / 8 1 H . F Y 3 / 9
( Y e n b n )
1 2
(Number of contract)
Real estate brokerage fee Real estate trust fee Number of brokerage contracts
19
Industry Share ＊2
Balance of Entrusted Pension Assets*1 under Management 1H.FY3/09 Despite the steady growth of pension assets on a book value basis, revenue declined slightly YoY due to decrease of pension assets on a market value basis
# of listed corporate clients
(As of 9/08)
*1 Includes discretionary assets
Pension Business related Revenue
# of shareholders under administration
(As of 9/08)
Our Group 25.4% Our Group 24.1%
・ 1H.FY3/09 25% market share and YoY revenue level are maintained. ・ Although revenue is on a downward trend in anticipation of dematerialization of stock certificate starting Jan. 2009, we will shift to a low cost structure by utilizing a JV set up with Mizuho Trust, which is responsible for back office operations
*2 CMTB+Tokyo Securities Transfer Agent
Stock Transfer Agency Business related Revenue
7 , 9 5 . 8 8 , 6 2 5 . 9 7 , 6 5 7 . 1 7 , 3 4 4 . 4 7 , 1 2 1 . 5 6 , 5 7 . 7 7 , 3 9 6 . 5 7 , 3 1 3 . 8
3 , 4 , 5 6 , 7 , 5 9 , 3 / 6 3 / 7 3 / 8 9 / 8
（ Y e n b n ） B
v a l u e b a s i s M a r k e t v a l u e b a s i s
～ ～ As of
a b c:b-a d e (Yen bn) CMTB, Actual Actual Outlook f:e-d non-consolidated 1H.FY3/08 1H.FY3/09 Chg. FY3/08 FY3/09 Chg. Fees received
13.1 12.8 (0.2) 24.5 23.0 (1.5)
Fees paid (minus)
5.7 5.5 (0.1) 10.9 10.5 (0.4)
Total
7.4 7.3 0.0 13.6 12.5 (1.1)
a b c:b-a d e (Yen bn) CMAB, Actual Actual Outlook f:e-d non-consolidated 1H.FY3/08 1H.FY3/09 Chg. FY3/08 FY3/09 Chg. Fees received
15.6 14.9 (0.7) 31.0 31.0 0.0
Fees paid (minus)
2.1 1.9 (0.1) 4.3 4.0 (0.3)
Total
13.4 12.9 (0.5) 26.6 27.0 0.3
20 Source: Company disclosures *1 CMTB + CMAB, non-consolidated *2 Sum of net fees and commissions and trust fees (excluding loan trust and JOMTs, or jointly operated money trusts) / gross operating profit (before trust a/c credit costs) *3 Sum of net interest income, loan trust fees, JOMTs fees, net trading income, and net other operating income / gross operating profit (before trust a/c credit costs)
Net fee income Other income
*2 *3
Net Fee Income as % of Gross Operating Profit for Major Banks in 1H.FY3/09 (Combined non-consolidated basis)
32% 26% 23% 20% 56% 68% 74% 80% 44% 77%
25 50 75 100 CMTH A B C D
（ %）
*1
21
4 8 . 3 4 3 . 4 3 . 5 10 20 30 40 50
1H.FY3/07 1H.FY3/08 1H.FY3/09
（ Number of condominiums : thousands ）
30 60 90 120
（ Yen bn）
New Condominium sales（ Metropolitan area＋Kinki area） CMTB's new housing loan origination for new condominium buyers
5 % 1 % 9 4 % Balance of Loans to Individuals
Housing Loans Origination by Channel Route sales channel Over the counter, etc. Client company channels
Continuous focus on high margin housing loans ⇒ Secure steady growth in loan balance Housing loan results for 1H.FY3/09 “Route sales (major home builders, real estate
agents and developers channel)” strategy brings
in successful differentiation with competitors
1H.FY3/09, Numbers of new loans originated Post securitization
New origination: JPY360.9bn (+JPY30.9bn against plan） Net increase: JPY184.0bn (+JPY75.0bn against plan)
* Source: Real Estate Economic Institute Co.,Ltd.
4 9 6 . 8 4 3 9 . 3 9 8 . 2 3 7 8 . 7 2 , 4 1 5 . 7 2 , 5 7 9 . 9 2 , 9 3 . 1 3 , 9 4 . 7 2 , 7 1 5 . 9 1 , 9 1 8 . 9 2 , 1 4 . 9 2 , 5 3 1 . 9
1 , 2 , 3 , 3 / 6 3 / 7 3 / 8 9 / 8 （ Y e n b n ）
H
s i n g l
n s S
e p r
r i e t
s h i p s , e t c
As of
Trend of Housing Market and CMTB’s Loan Origination
(Comparison of New Condominium Sales with CMTB‘s New Housing Loan Origination for New Condominium Buyers )
＊
22
8 1 5 . 4 8 6 6 . 8 8 7 5 . 8 8 7 7 . 6
2 4 6 8 3 / 6 3 / 7 3 / 8 9 / 8
Post securitization
No securitization in 1H.FY3/09 (Securitized JPY6.2bn in FY3/08)
(Yen bn)
Portfolio* by LTV and DSCR (As of 9/08) LTV*1 below 70%: 96%
%
DSCR*2 over 2.0x: 92%
%
*2 Excluding REIT type and development type
Balance of Real Estate Asset Finance
Focus on originations that meet our risk return-criteria Balance as of 9/08 is about the same level as of 3/08
Limited downside risk even on an adjustment phase of the market High risk tolerance allows us to build more profitable loan portfolio by flexibly originating loans that meet our risk-return criteria Solid portfolio based on stringent risk-return analysis
As of
*1 Excluding REIT type
23
We have build a loan portfolio adopting appropriate risk control by stringent selection of deals Weight of comparatively high margin loans to individuals increased (1H.FY3/09 Housing loan loss rate*1: 0.07%)
Recomposition of Loan Portfolio (average balance *2)
*1 Annualized rate of pay-out on guarantees by Chuo Mitsui Guarantee in 1H.FY3/09
Over 35% of total loans are profitable loans to individuals
*2 Banking A/C(domestic funds)+loan trusts+JOMTs+yen loan to non- resident, Post securitization *3 Corporate loans+corporate restructuring & revitalization related finance,etc. *4 Excluding bond-type
Recomposition of loan portfolio
Proactive increase of profitable overseas lending and real estate asset finance with good risk- return profile
. 8 % 1 . % 1 . 2 % 1 . 4 % 1 . 6 % 1 . 8 % 2 . % 1 H . F Y 3 / 7 1 H . F Y 3 / 8 1 H . F Y 3 / 9
L
n s t
n d i v i d u a l s R e a l e s t a t e a s s e t f i n a n c e L
n s t
p
a t e b
r
e r s
Trend of Yields
*4
2 5 % 2 9 % 3 3 % 3 7 % 7 1 % 6 2 % 5 7 % 5 3 % 1 % 1 % 9 % 4 % % 2 % 4 % 6 % 8 % 1 % F Y 3 / 3 1 H . F Y 3 / 7 1 H . F Y 3 / 8 1 H . F Y 3 / 9 L
n s t
n d i v i d u a l s R e a l e s t a t e a s s e t f i n a n c e C
p
a t e l
n s
*3
38％ 29％ 43％ 47％
*4
24
(Yen bn)
Buyout investment related
9.0 2.1 3.0
Securitized product investment related
2.8 1.4 1.7
Equity investment related
12.3 7.9 0.0
Hedge fund investment related
6.6 0.9 1.6
Total of investment return
30.7 12.3 6.5
CDO loss disposition
Grand total
30.7 12.3 3.3
*1 Gross operating profit （ before funding costs）
1H.FY3/09 Due to weak performance of market related investment, investment return nearly halved YoY, even after excluding the effect of CDO loss disposition
Return on Alternative Investment by Type*1
*2 Mostly Chuo Mitsui Capital related
Alternative Investments: Actual
*3 Gross operating profit （ before funding costs） , excluding CDO loss disposition *2 *3 *4 Annualized rate
(Yen bn)
1H.FY3/08 1H.FY3/09
a Average balance
540.0 580.0
b Investment return*3
12.3 6.5
b/a Rate of return*4
4.5% 2.2%
25
2,289.5 2,234.9 1,864.9 2,179.4 1,311.0 2,123.9 1,574.2 2,209.5
500 1,000 1,500 2,000 2,500 3/06 3/07 3/08 9/08
Principal basis Market value basis
1H.FY3/09 Although balance on a principal basis showed a steady growth, balance on a market value basis decreased ⇒Management fee turned out a slight increase
Investment Trust Management Fee
*1 Outstanding principal (net of sales, repurchases and redemption amount) *2 Sum of investment trust and investment advisory (market value basis)
Assets under Management
(Yen bn)
*1 *2
4.6 6.4 6.5
2 4 6 1H.FY3/07 1H.FY3/08 1H.FY3/09 ( Y e n b n ) As of
26
1H.FY3/09 Despite weak market conditions, assets under management increased slightly from 3/08
Assets under Management
* Total assets under management by Chuo Mitsui Capital
Total of Funds *
Private equity fund management business
investors might have greater need to sell their private equity portfolio
in providing new money, expectations for financing from Chuo Mitsui Capital as a main player in mezzanine finance has increased
including investments in secondary transactions
investors by grasping the needs of such investors
As of 142.9 214.5 273.9 278.2 105.1 116.3 124.5 84.6
50 100 150 200 250 3/06 3/07 3/08 9/08
( Y e n b n ) I n v e s t m e n t a m
n t C
m i t m e n t a m
n t
27
28 254.0 343.2 400.4 274.8 432.2 400.2 363.2 200.3 86.4 32.0 37.0 76.5 100 200 300 400 Retained earnings Public funds(Book value) Buyback Offering A m
n t ( Y e n b n ) T y p e Y e a r / M
t h
I n j e c t i
D i v i d e n d R a t e ( % ) C u r r e n t C
v e r s i
P r i c e
* 3
M a n d a t
y c
v e r s i
d a t e C
v e r s i
P r i c e a t m a n d a t
y c
v e r s i
d a t e
C l a s s Ⅰ
All shares (JPY 32.0 billion) were sold in the market in July 2006
C l a s s Ⅱ 1 5 . C
v e r t i b l e 3 / 1 9 9 9 . 9 J P Y 4 5 8 / 1 / 2 9 M a r k e t p r i c e
* 4
C l a s s Ⅲ 5 . 3 5 C
v e r t i b l e 3 / 1 9 9 9 1 . 2 5 J P Y 4 5 8 / 1 / 2 9 M a r k e t p r i c e
* 4
JPY 37.0 billion were sold in the market in July 2007 JPY 76.5 billion were sold in the market and JPY 86.4 billion were bought back in July 2008
T
a l 2 . 3 5
11.95 9.05 12.13 7.50 10.14 10.34 12.35 13.84 8.90 6.82 6.00 3.75 8.50 10.82 4 8 12 16 3/03 3/04 3/05 3/06 3/07 3/08 9/08
(%)
Capital Adequacy Ratio
The Group’s Retained Earnings *2
*2 Total retained earnings of CMTH+CMTB+CMAB subtracted by amount required for accumulated earned reserve. Although we actually used capital reserve for share buyback in July 2008, the chart shown above deducted Group’s retained earnings, based on the idea that retained earnings should be regarded as the resource of repaying public money. Tier1 Ratio
Capital Adequacy Ratio *1 (CMTH, consolidated)
*1 Figures as of 9/08 is preliminary basis. Figures after 3/07 is calculated on Basel Ⅱ basis. ＊3 No upward reset. Downward reset only. Annual reset date : August 1st ＊4 30 business day average for common share price, starting from 45 days prior to mandatory conversion date. 400 yen is final reset floor.
Capital Adequacy Ratio *1 & Tier1 Ratio *1
(CMTH, consolidated)
As of
We aim to make “ Full Repayment” by August 2009 through secondary offerings and share buybacks Preferred Shares
As of 3/06 3/07 3/08 9/08
（ yen bn) (Yen bn) a b c:b-a CMTH, Consolidated 3/08 9/08 Change Tier 1
878.0 767.3 (110.7)
Tier 2
263.7 266.6 2.8
Risk adjusted assets
8,109.0 8,477.0 368.0
Capital Adequacy Ratio
13.84% 11.95% (1.89%)
Tier 1 Ratio
10.82% 9.05% (1.77%)
29
This material contains certain forward-looking statements. These statements are not guarantees of future performance, and involve risks and uncertainties. Actual results may differ from these forward-looking statements contained in the present material, due to various factors, including, but not limited, to changes in