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Analyst Meeting

Presentation Material

Analyst Meeting

Presentation Material

Mitsui Trust Financial Group

May 31, 2007

1

Mitsui Trust Financial Group

Agenda Ⅰ. Reorganization within the Group and Strengthening of the Group’s Brand Awareness Ⅱ. Management Strategies Ⅲ. Strategic Business Operations Ⅳ. Strengthening of Balance Sheet

2

Mitsui Trust Financial Group

Ⅰ. Reorganization within the Group and Strengthening of the Group’s Brand Awareness

3

Mitsui Trust Financial Group

Reorganization within the Group and Strengthening of the Group’s Brand Awareness

Current Status After Reorganization （Scheduled for October 1, 2007)

Mitsui Trust Financial Group

Mitsui Trust Holdings, Inc.

The Chuo Mitsui Trust & Banking Co., Ltd. Mitsui Asset Trust & Banking Co., Ltd.

Trust Banks

Chuo Mitsui Asset Management Co., Ltd Chuo Mitsui Capital Co., Ltd Other subsidiaries

Asset Management

Chuo Mitsui Trust Group

Chuo Mitsui Trust Holdings, Inc.

Chuo Mitsui Capital Co., Ltd The Chuo Mitsui Trust & Banking Co., Ltd. Other subsidiaries Chuo Mitsui Asset Trust & Banking Co., Ltd. Chuo Mitsui Asset Management Co., Ltd

Trust Banks Asset Management

Reorganization within the Group （ Chuo Mitsui Asset Management Co., Ltd. & Chuo Mitsui Capital Co., Ltd.)

• Convert into direct wholly-owned subsidiaries of Mitsui Trust to develop strategic business operations and to

bolster the Group’s internal control system

Unify our Group brand under the “Chuo Mitsui” name to strengthen brand awareness

4

Mitsui Trust Financial Group

Ⅱ. Management Strategies

･ Management Direction ･ Summary of Strategic Business Operations ･ Financial Summary ･ Revenues by Business Unit ･ Recomposition of Revenue Structure ･ Expenses ･ Profitability & Efficiency ･ Major Figures related to Balance Sheet

5

Mitsui Trust Financial Group

Management Direction

Mitsui Trust Financial Group

Management Actions

Management Direction

Maintenance and improvement of sound financial base

Enhancement

• f

Profitability Strengthening

• f

Balance Sheet

Further promotion of recomposition

• f revenue

structure

Expansion of overall investment in management resources Concentration on high margin & high growth business segments within strategic businesses

Increasing revenues

6

Mitsui Trust Financial Group

FY3/08 Plan FY3/07 Actual Items

Summary of Strategic Business Operations

Enhancement of Profitability Loan balance*: ¥2,140.9bn

（¥222.0bn increase, or 11.6% increase YoY）

Sales amount: ¥924.0bn (Record High)

（¥140.3bn increase, or 17.9% increase YoY）

Housing loans Investment trust & Annuity insurance Revenue: ¥38.7bn (Record High)

（¥8.4bn increase, or 27.7% increase YoY）

Real estate Revenue: ¥40.0bn

Maintain the record high level

Sales amount: ¥990.0bn

Aim to break the record

Net increase: ¥217.0bn “Business loans” Loan balance*: ¥56.5bn

（¥49.9bn increase or 756% increase YoY）

Corporate restructuring & revitalization related finance Loan balance: ¥80.3bn

（¥39.2bn increase or 95.3% increase YoY）

Loan balance: ¥120.0bn Loan balance: ¥100.0bn

*after securitization *CMTB’s portion

7

Mitsui Trust Financial Group

Financial Summary

*1 Before trust a/c credit costs *2 Effective net operating profit before trust a/c credit costs & provision(reversal) of general reserve

FY3/07 Highlights & FY3/08 Outlook

a b c:b-a d e:d-b (Yen bn)

Actual Outlook

CMTB+MATB, non-consolidated FY3/06 FY3/07 Change % FY3/08 Change % Gross operating profit *1

283.3 275.3 (7.9) (3)% 291.0 15.7 6%

Of which housing loan securitization profit

16.2

• (16.2)
• Operating expenses

100.2 98.2 (1.9) (2)% 111.0 12.8 13%

Pre-provision profit *2

183.0 177.0 (5.9) (3)% 180.0 3.0 2%

Credit Costs

65.6 29.7 (35.8) 20.0 (9.7)

Net stock related profit

26.5 8.6 (17.9)

• (8.6)

Net other profit (loss)

(18.7) (1.8) 16.9 (10.0) (8.2)

Recurring profit

125.2 154.1 28.8 23% 150.0 (4.1) (3)%

Extraordinary Profit

1.7 18.1 16.3

• (18.1)
• 15.8

15.8

• (15.8)

Deferred income taxes

0.1 43.3 43.2 47.5 4.2

Net income

118.2 118.4 0.1 0% 90.0 (28.4) (24)%

MTH, Consolidated FY3/06 FY3/07 Change % FY3/08 Change % Recurring profit

138.3 159.9 21.6 16% 155.0 (4.9) (3)%

Net income

119.6 112.7 (6.8) (6)% 85.0 (27.7) (25)%

Of which gain on partial withdrawal of employee retirement benefit trust

8

Mitsui Trust Financial Group

Revenues by Business Unit

Revenues by Business Unit

* Includes fees related to sales, administration and management of investment trusts

a b c:b-a d e:d-b （Yen bn） Actual Outlook CMTB+MATB, non-consolidated FY3/06 FY3/07 Change % FY3/08 Change % Asset management business

125.9 132.8 6.9 5% 141.0 8.2 6% 40.5 43.0 2.5 6% 50.5 7.5 17%

Of which investment trust related*

18.3 30.0 11.7 64% 36.5 6.5 22%

Real estate related

30.3 38.7 8.4 28% 40.0 1.3 3%

Pension**

24.5 26.1 1.6 7% 28.5 2.4 9%

Stock transfer agency

16.7 14.5 (2.2) (13)% 14.5 0.0 0%

Banking business

157.4 142.5 (14.9) (9)% 150.0 7.5 5%

Corporate loans, Bond investments, etc.

70.7 65.8 (4.9) (7)% 71.0 5.2 8%

Loans to individuals

33.8 37.0 3.2 9% 39.0 2.0 5%

Real estate asset finance

11.5 9.6 (1.9) (17)% 8.0 (1.6) (17)%

Alternative investments

24.5 25.3 0.8 3% 23.5 (1.8) (7)% 0.6 4.8 4.2 700% 8.5 3.7 77%

Housing loan securitization profit

16.2

• (16.2)
• Gross operating profit

283.3 275.3 (7.9) (3)% 291.0 15.7 6%

Investment trust & Annuity insurance related Business loans and Corporate restructuring & revitalization related finance

**Managerial accounting basis changed as of April 2007. Figures as of FY3/06 and FY3/07 above are classified on the new basis for comparison purposes.

9

Mitsui Trust Financial Group 19% 18% 18% 19% 18% 18% 3% 4% 9% 11% 14% 13% 2% 6% 10% 14% 16% 17% 2% 3% 3% 9% 9% 8% 2% 5% 4% 4% 3% 11% 11% 12% 12% 13% 13% 63% 56% 43% 31% 24% 25% 1% 4%

FY3/03 FY3/04 FY3/05 FY3/06 FY3/07 FY3/08

Recomposition of Revenue Structure

Composition of gross operating profit （CMTB+MATB, non-consolidated)

Recomposition of Revenue Structure

（E）

Strategic Business

• Loans to individuals
• Real estate asset finance
• Alternative investments
• Business loans and

Corporate restructuring & revitalization related finance

• Investment trust & Annuity

insurance

• Real estate related business
• Other asset management

businesses

Corporate loans Bond investments, etc. Conventional Banking Business 69% 57% 44% 37% 75% 76% Banking Business Banking Business Asset Management Business

10

Mitsui Trust Financial Group

47.4 63.2 63.5 46.1 45.4 50.5 61.3 60.5 107.4 105.9 110.6 114.0

40 80 120 FY3/05 FY3/06 FY3/07 FY3/08(E) Non-Personnel Personnel [Excluding allowance for retirement benefit]

(Yen bn)

9,609 9,561 10,157 10,400 17 16 19

9,000 9,500 10,000 10,500 11,000 3/05 3/06 3/07 3/08 15 20 25 Bank employees + contract employees Consulplazas 35.8% 35.3% 35.6% 38.1%

0% 10% 20% 30% 40% 50% FY3/05 FY3/06 FY3/07 FY3/08

(%)

Expenses

Proactive increases in operating expenses to invest in high margin & high growth business segments

Operating Expenses

Personnel

Operating Expenses (CMTB+MATB, non-consolidated)

Thorough low-cost operation to maintain current efficiency level Overhead Ratio Strategy

# of Group total employees & # of Consulplazas *

（Plan）

YoY Comparison of Strategic Expenses＊

（CMTB+MATB, non-consolidated ）

Overhead Ratio （CMTB+MATB, non-consolidated ）

* Personnel [excluding allowance for retirement benefit] + Non-Personnel

（E）

～ ～

[# of branches: 67 (no change)]

*in-store mini branches As of

11

Mitsui Trust Financial Group Gross operating profit Total assets Overhead ratio = 35.6%

1% 2% 2% 3% 30% 35% 40% 45% 50% 55%

Profitability & Efficiency: FY3/07 Comparison of Major Banking Groups

Profitability & Efficiency Good Poor

1.0% 1.5% 2.0% 2.5%

2.1％

＝

Profitability & Efficiency: Top among major banking groups

Gross operating profit Total assets

(end balance）

High ↑ Profitability ↓ Low Other major banking groups

Mitsui Trust *

Low ← Efficiency → High

Overhead ratio

* CMTB+MATB, non-consolidated

12

Mitsui Trust Financial Group

FY3/08 Plan FY3/07 Actual Items

Major Figures related to Balance Sheet

Major Figures related to Balance Sheet

Actual: 67% of Tier I *3 from 62% in 3/06 Actual: 7% of Tier I *3 from 18% in 3/06 NPL ratio *1 Credit costs *1 Equity portfolio *2 Net DTA *2 Maintain under 2% Estimate: ¥20.0bn Maintain current level Further decrease relative to Tier I

*1 CMTB, Non-consolidated *2 MTH, Consolidated *3 Tier I as of 3/07 is on Basel II basis *4 Total retained earnings of MTH+CMTB+MATB less an appropriation for accumulated earned reserve

Retained earnings *4 Increase to ¥400bn level Actual: 0.1% down to 1.7% YoY Significantly decreased to ¥29.8bn from ¥65.6bn of FY3/06 ¥89.2bn increased to ¥343.2bn

13

Mitsui Trust Financial Group

Ⅲ. Strategic Business Operations

• 1. Asset Management Business
• 2. Banking Business
• 3. Strategic Subsidiaries

14

Mitsui Trust Financial Group

Ⅲ- 1. Asset Management Business

• Investment Trust & Annuity Insurance related Business
• Real Estate related Business
• Pension Business ＆ Stock Transfer Agency Business

15

Mitsui Trust Financial Group

8.8 12.2 21.0 17.1 22.1 13.0 9.0 6.1 3.9 11.0 25.5 14.0 13.5 10.3 2.9 6.1

10 20 30 40 50

（Yen bn）

Annuity insurance sales fee Trustee fee & Investment advisory fee Investment trust sales fee (Ref) Investment management fee of Chuo Mitsui Asset Management

293.3 388.6 708.6 240.0 750.0 395.0 309.7 215.4 200 400 600 800 1,000 FY3/05 FY3/06 FY3/07 FY3/08

（Yen bn）

Annuity insurance sales amount Investment trust sales amount

Investment Trust & Annuity Insurance related Business

By providing a wide selection of products geared toward clients’ needs and by allocating sufficient human resources, we further develop and proactively market our investment trust products

30.0 40.5 50.5

FY3/05 FY3/06 FY3/07

Investment trust & Annuity insurance related revenue **

603.1 783.7 990.0

Investment trust & Annuity insurance balance *

* CMTB, non-consolidated ** CMTB+MATB, non-consolidated

924.0

FY3/08

43.0

(Plan) (E)

717.6 919.8 1,246.7 1,545.0 499.5 868.6 1,058.3 1,270.0 400 800 1,200 1,600 3/05 3/06 3/07 3/08 Investment trust Annuity insurance

（Yen bn) (Plan)

As of Breakdown of Investment trust & Annuity insurance related revenue Investment trust & Annuity insurance sales amount *

CMTB+MATB, a b d (Yen bn) non-consolidated Actual c:b-a Outlook e:d-b Sales Fee FY3/06 FY3/07 Chg. FY3/08 Chg. Investment trust sales fee

12.2 21.0 8.8 25.5 4.5

Annuity insurance sales fee

22.1 13.0 (9.1) 14.0 1.0

Total

34.4 34.0 (0.4) 39.5 5.5

Trustee Fee & Investment Advisory Fee for Investment Trust Trustee fee

3.9 5.3 1.4 6.5 1.2

Investment advisory fee

2.2 3.6 1.4 4.5 0.9

Total

6.1 9.0 2.9 11.0 2.0

Grand total 40.5 43.0 2.5 50.5 7.5

(Reference) Investment management fee of Chuo Mitsui Asset Management 6.1 10.3 4.2 13.5 3.2

16

Mitsui Trust Financial Group

3 . 6 4 .6 2 0 .2 2 4 . 5 3 1 .0 5 . 0 5 .8 7 . 6 8 .0 5 . 2 5 . 0 3 2 . 0

10 20 30 40

(Yen bn)

Real estate trust fee Real estate brokerage fee (Ref) Brokerage fee of Chuo Mitsui Realty

Real Estate related Business

Posted record high revenue due to steady increase in brokerage fees attributable to increased activity of funds & other investors Though revenue growth rate is expected to slow down, additional growth still targeted

Balance of securitized real estate *

FY3/05 FY3/06 FY3/07

25.3 30.3 40.0 Growth of real estate related revenue *

FY3/08

38.7

1,485.4 2,140.9 2,999.7 4,312.7 4,510.0 1,000 2,000 3,000 4,000 5,000 As of 3/04 3/05 3/06 3/07 3/08 (Yen bn）

(Plan)

(E) * CMTB, non-consolidated

a b c:b-a d (Yen bn) CMTB, Actual Outlook e:d-b non-consolidated FY3/06 FY3/07 Chg. FY3/08 Chg. Brokerage fee 24.5 31.0 6.5 32.0 1.0 Securitization related 5.8 7.6 1.8 8.0 0.4 Total 30.3 38.7 8.4 40.0 1.3 (Reference) Brokerage fee of Chuo Mitsui Realty 4.6 5.0 0.4 5.2 0.2 Breakdown of real estate related revenue

17

Mitsui Trust Financial Group 6,720.5 7,950.9 8,626.6

5,000 6,000 7,000 8,000 9,000 3/05 3/06 3/07

（Yen bn）

Our Group*3 25.7% Our Group*3 24.6%

Market Share

Pension Business＆ Stock Transfer Agency Business

Balance of entrusted pension assets *2 under management

(MATB, non-consolidated, market value basis) ～ ～

Pension： Both balance of entrusted assets and revenue showed steady growth Stock Transfer Agency： Maintain high market share by providing high value-added services, such as IT online system for shareholders’ meeting and verification of actual shareholders

*1 Managerial accounting basis changed as of April 2007. Figures as of FY3/06 and

FY3/07 above are classified on the new basis for comparison purposes. （Net revenues on the former basis: FY3/06 25.7bn, FY3/07 27.7bn）

# of shareholders under administration

（As of 3/07)

# of listed company clients

（As of 3/07)

*2 Includes discretionary assets

Stock transfer agency business related revenue a b d (Yen bn) CMTB, Actual c:b-a Outlook e:d-b non-consolidated FY3/06 FY3/07 Chg. FY3/08 Chg. Fees received

27.7 25.5 (2.2) 25.0 (0.5)

Fees paid (minus)

10.9 11.0 0.1 10.5 (0.5) 16.7 14.5 (2.2) 14.5 0.0

*3 CMTB + Tokyo Securities Transfer Agent

a b d (Yen bn) MATB, Actual c:b-a Outlook e:d-b non-consolidated FY3/06 FY3/07 Chg. FY3/08 Chg. Fees received

29.1 30.7 1.6 33.0 2.3

Fees paid (minus)

4.6 4.6 0.0 4.5 (0.1) 24.5 26.1 1.6 28.5 2.4

Pension business related revenue *1

18

Mitsui Trust Financial Group 38.9% 27.0% 27.3% 26.5% 49.5% 61.1% 73.0% 73.5% 50.5% 72.7% 25 50 75 100 当ｸﾞﾙｰﾌﾟ A B C D （%）

Net fee income as % of gross operating profit for major banks FY3/07 (CMTB+MATB, non-consolidated)

Source: Disclosed company data Notes: 1 Sum of net fees and commissions income and trust fees, excluding fees from loan trusts and Jointly Operated Money Trusts (JOMTs), divided by gross operating profit before trust account credit costs 2 Sum of net interest income, loan trust fees, JOMTs fees, net trading income, and net other operating income, divided by gross operating profit before trust account credit costs 3 Combined non-consolidated basis for CMTB and MATB

Net Fee Income (%)

1

Others (%)

2

Mitsui Trust 3

Net Fee Income on Asset Management Business

19

Mitsui Trust Financial Group

Ⅲ-2. Banking Business

・ Loans to Individuals ・ Real Estate Asset Finance ・ Business Loans ・ Corporate Restructuring & Revitalization Business ・ Loan Portfolio ・ Yields and Margins ・ Alternative Investments

20

Mitsui Trust Financial Group

2,431.8 2,415.7 2,579.9 2,732.0 2,358.0 2,140.9 1,918.9 1,858.4

750 1,500 2,250 3,000 3/05 3/06 3/07 3/08(E)

（Yen bn）

Loans to individuals Of which, housing loans

Expand client base by introducing competitive products New housing loan origination: ¥480.0bn Net increase: ¥222.0bn

94% 3% 3%

Balance of loans to individuals *

Loans to Individuals

Housing loans origination by channel *

As of

Route sales channel Over the

• counter. etc.

Client company channels

FY3/07 actual “Route sales (home builders, real estate agents

and developers channel)” strategy helps achieve

successful differentiation from competitors

FY3/07

After housing loan securitization

Continue to focus on high margin loans to individuals ⇒ Consistent growth in balance Achieved effective hedging of interest rate risk through securitization of housing loans ⇒ No plan for further securitization

(Plan)

* CMTB, non-consolidated

21

Mitsui Trust Financial Group

54% 12% 14%

968.8 815.4 866.8 820.0

200 400 600 800 1,000 3/05 3/06 3/07 3/08

Real Estate Asset Finance

5 central wards in Tokyo (Chiyoda, Minato, Chuo, Shinjuku, Shibuya) All Tokyo wards excluding the 5 central wards Other areas in metropolitan (Kanto) Other local areas

Real estate asset finance by region / type (balance basis) *

As of 3/07

Fund investment type Securitization type Development type REIT type 20%

After securitization

Securitized ¥42.5bn in FY3/07 (Securitized ¥140.7bn in FY3/06)

【By type】 【By region】

(Yen bn)

Portfolio* by LTV** / DSCR*** (As of 3/07) LTV* below 70%: 95.1%

% DSCR* over 2.0x: 87.3% %

*Excluding REIT type and development type **Loan to value ***Debt service coverage ratio

Balance of real estate asset finance *

Fund investment type: Real estate fund investment Securitization type: Off-balance real estate of corporations Development type: Build new office buildings and large condominiums REIT type: Loans to REIT (to investment company)

13% 13% 14% 60%

Market: Increased competition led to decrease in profitable originations that meet our risk-return criteria Restrain aggressive balance increase Shift to a “fee business model” by utilizing securitization capabilities

(Plan)

* CMTB, non-consolidated

As of

22

Mitsui Trust Financial Group

0.0 6.6 56.5 5.8 26.0 120.0 20.2 0.2

30 60 90 120 3/05 3/06 3/07 3/08

（Yen bn）

Chuo Mitsui * Chuo Mitsui Finance Service

Expanding Target clients: Covering 47 prefectures Expanding sales network: Increase number of

branches and employees

Introducing products to meet clients’ diversified needs Appropriate risk management

（Target companies: Annual sales of ¥50mil and above）

Increase proactive investment of management resources Developing a nationwide network of business loans to service SME market

Business Loans

Business loans related loan balance

Further increased to 28 branches Increased to be 270 employees Network as of FY3/06: 8 branches 90 employees Chuo Mitsui Trust & Banking Chuo Mitsui Finance Service

Enhancing real estate related finance through

alliance with NIS Group (Nissin)

Introducing various products and enhancing tie-up with

Chuo Mitsui to increase loan volume and profit. （Target companies: Annual sales of less than ¥50mil ）

(Plan) As of

* CMTB, non-consolidated

23

Mitsui Trust Financial Group As the number and size of legal revitalization transactions became smaller, we focused more

• n corporate restructuring business

As a result, our balance of corporate restructuring & revitalization related finance as

• f 3/07 nearly doubled from the previous year

13.7 41.1 80.3 100.0

30 60 90 120 3/05 3/06 3/07 3/08

(Yen bn）

＊ Buyout finance ＊Arrangement of M&A (Sponsor search) ＊Arrangement of financing scheme ＊Advisory business

Enhancing business to meet the diversified needs of corporate clients for restructuring and revitalization, M&A and buyout related finance and advisory services

Corporate Restructuring & Revitalization Business

Corporate restructuring related business

Balance of corporate restructuring & revitalization related finance *

Positioned as leading provider of

financing products through engagement in large corporate restructuring deals (Plan)

As of

* CMTB, non-consolidated

24

Mitsui Trust Financial Group

21% 26% 28% 32% 31% 77% 69% 62% 57% 57% 2% 3% 5% 10% 9% 9% 2% 0% 20% 40% 60% 80% 100% 3/01 3/03 3/05 3/07 3/08

Corporate loans Loans to individuals Real estate non-recourse loans Business loans and corporate restructuring & revitalization related finance

Appropriate risk control adopted in constructing loan portfolio Weight of comparatively high margin loans to individuals and real estate non-recourse loans etc. exceeds 40% Aiming to expand our new “Business Loans” and Corporate restructuring and revitalization related finance

Loan Portfolio

Recomposition of loan portfolio *

After housing loan & real estate asset finance securitization

31% 38% 43%

(Plan)

43% 23%

Business loans Corporate restructuring & revitalization related finance

More than 30% of total loan balance is relatively low-risk loans to individuals Maintaining stringent selection strategy related to loans to consumer finance companies

As of

* CMTB, non-consolidated

25

Mitsui Trust Financial Group

0.8 1.0 1.2 1.4 1.6

• 1H. FY3/05
• 2H. FY3/05
• 1H. FY3/06
• 2H. FY3/06
• 1H. FY3/07
• 2H. FY3/07

Average yield on loans and bills discounted Yield margin(2-4)

Yields and Margins

Both yields and margins showed improvement from 2H.FY3/07

3 a/c total Margin 3 a/c total Yield

（％） YoY comparison of Yields and margins (CMTB, non-consolidated, 3 a/c total)

Banking a/c(domestic funds) + Loan Trusts + JODMTs

a b c d:c-b

• 2H. FY3/06 1H. FY3/072H. FY3/07 Change

1 Average yield

1.29% 1.12% 1.46% 0.34%

2

Average yield on loans and bills discounted

1.17% 1.09% 1.38% 0.29%

Average yield on securities

2.40% 1.58% 2.17% 0.59%

3 Average yield on procured funds

0.19% 0.23% 0.36% 0.13%

4

Average yield on deposits and principals

0.14% 0.18% 0.29% 0.11%

Yield margin(1-3)

1.09% 0.88% 1.10% 0.22%

Yield margin(2-4)

1.02% 0.90% 1.08% 0.18%

YoY comparison of Yields and margins (CMTB, non-consolidated, 3 a/c total)

26

Mitsui Trust Financial Group

8.1 8.1 11.3 15.7 13.0 3.1 2.8 3.0 4.6 6.4 9.0 6.2 3.8 6.0 0.1 6.1 1.1 3.0

0.0 10.0 20.0 30.0 40.0 FY3/05 FY3/06 FY3/07 FY3/08(E)

（Yen bn）

Hedge fund investment related Securitized product investment related Equity investment related Buyout investment related Others

Alternative Investments

*1 Gross profit base（before procured fund costs）

12.6 35.0 32.8

Private equity investment business is successfully expanding as a profit driver

Return on alternative investment by type *

31.0

Private equity investments Chuo Mitsui’s return from investment in funds managed by Chuo Mitsui Capital

(Yen bn) Actual Actual Plan FY3/06 FY3/07 FY3/08

a

Avg. balance

730.0 560.0 780.0

b

Return*1

35.0 32.8 31.0

b/a

Rate of return

4.7% 5.8% 3.9%

Alternative investments: Actual and Plan *

* CMTB, non-consolidated

27

Mitsui Trust Financial Group

Ⅲ -3. Strategic Subsidiaries

・Strategic Subsidiaries

28

Mitsui Trust Financial Group

424.5 860.3 1,574.2 2,234.9 500 1,000 1,500 2,000 2,500

As of 3/04 3/05 3/06 3/07

（Yen bn）

6.4 16.4 62.7 98.0 25 50 75 100

3/04 3/05 3/06 3/07

（Yen bn）

Strategic Subsidiaries

* Chuo Mitsui’s balance of investments in funds managed by Chuo Mitsui Capital Balance of investments related to Chuo Mitsui Capital * Balance of assets under management ** (Investment trust + Management Advisory)

Chuo Mitsui Capital Private equity fund investment business Chuo Mitsui Asset Management Investment trust management business Two asset management subsidiaries ~Chuo Mitsui Capital and Chuo Mitsui Asset Management~ become strategic vehicles to further strengthen Mitsui Trust’s Group management

As of ** Investment Trust: Market value basis Management Advisory: principal basis

* CMTB, non-consolidated ** Chuo Mitsui Asset Management, non-consolidated

29

Mitsui Trust Financial Group

Ⅳ. Strengthening of Balance Sheet

• Disposal of NPLs
• NPL Balance & NPL Ratio
• Equity Portfolio & Deferred Tax Assets
• Capital

30

Mitsui Trust Financial Group

540.5 248.2 180.3 121.5 58.3 43.9 65.6 29.7 189.3 181.2 183.0 177.0 168.0 164.4 162.6 191.1 166.8 161.5 324% 103% 110% 32% 23% 36% 17% 64% 154%

100 200 300 400 500 600

FY3/99FY3/00FY3/01FY3/02FY3/03FY3/04FY3/05FY3/06FY3/07

• 200%
• 100%

0% 100% 200% 300% 400%

Credit costs(1) Pre-provision profit (2) (1) / (2)

Disposal of NPLs

（Yen bn）

Though credit costs in FY3/07 totalled ¥29.8bn, it was a significant decrease of ¥35.8bn from FY3/06

Credit Costs & Pre-provision profit (CMTB+MATB, non-consolidated) Amount of Off-balance

a b d (Yen bn) CMTB, non- consolidated Actual c:b-a Outlook e:d-b FY3/06 FY3/07 Chg. FY3/08 Chg.

233.2 70.9 (162.3) 30.0 (40.9)

Off-balance amount

a b d (Yen bn) CMTB, Actual c:b-a Outlook e:d-b non-consolidated FY3/06 FY3/07 Chg. FY3/08 Chg. New NPLs costs

49.3 17.5 (31.7)

Off-balance costs

2.6 (4.1) (6.8)

Provision (reversal) of general reserve

13.6 16.3 2.6

Total

65.6 29.8 (35.8) 20.0 (9.8) 20.0 Breakdown of Credit Costs

31

Mitsui Trust Financial Group 291.7 283.1 165.2 89.1 61.5 410.6 184.9 94.9 71.8 82.8 1.7% 7.0% 4.9% 1.8% 2.8% 250 500 750 3/03 3/04 3/05 3/06 3/07

(Yen bn）

0% 2% 4% 6% 8%

Claims under Close Observation Claims under High Risk & Claims under Bankruptcy and Virtual Bankruptcy NPL Ratio

NPL Balance & NPL Ratio

NPL Balance & NPL Ratio (CMTB, non-consolidated, banking a/c + trust a/c)

NPL Ratio: Maintain under 2% level 702.3 468.0 260.1 160.9 144.3 As of

32

Mitsui Trust Financial Group 535.4 469.5 464.2 517.6 785.7 227% 67% 62% 95% 73% 250 500 750 3/03 3/04 3/05 3/06 3/07 ( Y e n b n ） 0% 50% 100% 150% 200% 250%

Equity Portfolio Equity Portfolio / Tier I

276.7 223.2 344.6 134.6 58.5 35% 18% 99% 49% 7% 100 200 300 400 3/03 3/04 3/05 3/06 3/07 0% 25% 50% 75% 100%

DTAs DTAs/Tier I

*1 Acquisition cost basis, except for 3/03 figure (book value basis, due to net unrealized losses) *2 Tier I as of 3/07 is calculated on Basel Ⅱ basis.

Equity Portfolio & Deferred Tax Assets

Equity Portfolio & Tier I （MTH, Consolidated)

3/07 : 67% of Tier I capital 3/07 : 7% of Tier I capital

Deferred Tax Assets (DTAs) & Tier I （MTH, Consolidated) (Yen bn) As of

As of

*1 *1 *2 *2

33

Mitsui Trust Financial Group

28.2 99.1 165.4 254.0 343.2 400.0 100 200 300 400 3/03 3/04 3/05 3/06 3/07 3/08 （Yen bn）

Capital

Capital Adequacy Ratio & Tier I Capital Ratio

(MTH, Consolidated) (%)

The Group’s Retained Earnings * （Outlook）

* Total retained earnings of MTH+CMTB+MATB less an appropriation for accumulated earned reserve

Amount (Yen bn) Type Year/Month

• f Injection

Dividend Rate Current Conversion Price Reset Floor

Annual reset date, Up/Down ward Resets

Mandatory conversion date Conversion Price at mandatory conversion date Final Reset Floor (Yen) Class I All of Class I (\32.0bn) was sold in the market in July 2006 Class II 150.0 Convertible 3/1999 0.90% 450 450 8/1/2009 Market price * 400 Class III 250.25 Convertible 3/1999 1.25% 450 450 8/1/2009 Market price * 400 Total 400.25 * 30-day average for common share prices, starting from 45 days prior to mandatory conversion August 1, Downward reset only

Capital Adequacy Ratio Tier I Capital Ratio

Capital Adequacy Ratio (MTH, Consolidated) Preferred Shares

* Figures as of 3/07 are calculated on BaselⅡ basis

As of As of

12.35 10.34 10.14 7.50 12.13 8.50 3.75 6.00 6.82 8.90 4 8 12 16 3/03 3/04 3/05 3/06 3/07

B aselⅠ B aselⅠ B aselⅡ B asis B asis B asis M TH , C onsolidated 3/06 3/07 3/07 Tier I

747.9 820.5 764.5

Tier Ⅱ

341.7 353.2 296.0

R isk adjusted assets

8,795.6 9,490.4 8,584.1

C apital A dequacy R atio

12.35% 12.33% 12.13%

Tier1 R atio

8.50% 8.64% 8.90%

34

Mitsui Trust Financial Group 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

• verall economic conditions.