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Analyst Meeting Analyst Meeting Presentation Material Presentation Material November 26, 2009 Chuo Mitsui Trust Group Agenda . Status of Profit . Status of Assets . Priority Businesses Operations . Status of Capital
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*CMTH: Chuo Mitsui Trust Holdings *CMTB: Chuo Mitsui Trust and Banking *CMAB: Chuo Mitsui Asset Trust and Banking
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1H.FY3/10 Highlights & FY3/10 Outlook
*1 Before trust a/c credit costs *2 Effective net operating profit before trust a/c credit costs & provision (reversal) of general reserve
a b c:b-a d e f:e-d (Yen bn)
Actual Outlook
CMTB+CMAB, non-consolidated 1H.FY3/09 1H.FY3/10 Change % FY3/09 FY3/10 Change % Gross operating profit *1
121.4 116.2 (5.1) (4)% 228.7 220.0 (8.7) (4)%
Operating expenses （minus）
59.0 58.9 (0.0) (0)% 115.9 120.0 4.0 4%
[Net periodic retirement benefit cost] （minus）
[(0.2)] [2.1] [2.4] [(0.4)] [4.0] [4.4]
Pre-provision profit *2
62.4 57.3 (5.0) (8)% 112.8 100.0 (12.8) (11)%
Net other profit (loss) and others
(35.0) (21.1) 13.8 (226.6) (40.0) 186.6
[Losses on devaluation of stocks]
[(16.2)] [(1.1)] [15.0] [(69.7)] [-] [69.7]
[Losses on sales of Japanese stock related investments]
[-] [(0.5)] [(0.5)] [(113.3)] [-] [113.3]
Ordinary profit
27.3 36.1 8.7 32% (113.8) 60.0 173.8
9.8 1.4 (8.4) 7.7
Current and Deferred income taxes （minus）
20.1 12.7 (7.3) (26.0) 20.0 46.0
Net income
17.1 24.8 7.6 45% (79.9) 40.0 119.9
（minus）
0.3 11.0 10.6 21.2 20.0 (1.2)
CMTH, consolidated 1H.FY3/09 1H.FY3/10 Change FY3/09 FY3/10 Change Ordinary profit
26.9 34.3 7.4 28% (116.9) 60.0 176.9
13.7 19.0 5.3 38% (92.0) 30.0 122.0
5.00yen
4
Factors for Increase/Decrease in Gross Operating Profit (CMTB+CMAB, non-consolidated)
Result of 1H.FY3/10 Gross operating profit of Investment trust, Annuity insurance, and Real estate related businesses, which are part of priority segments, are decreasing YoY, on early stage of the recovery. Total gross operating profit remains around the same level YoY, as Loan to individuals and Market related business made strong profit.
Conventional Banking Businesses Strategic Businesses Increase factor
P riority Segments
D ecrease factor 1.0
121.4 116.2
1H .FY 3/09 1H .FY 3/10 (3.6) 4.5 2.4 (5.1) (5.9) 1.5 （ Y en bn） (5.1)
Co rp o rate lo an s , etc. Bo n d inv es tmen ts , etc. Lo an s to in d iv id u als In v es tmen t tru s t & A n n u ity in s u ran ce Real es tate A ltern ativ e in v es tmen ts Oth ers
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Gross Operating Profit by Business Unit a b c:b-a d e f:e-d （Yen bn） Actual Outlook CMTB+CMAB, non-consolidated 1H.FY3/09 1H.FY3/10 Change % FY3/09 FY3/10 Change % Asset management businesses
50.2 36.1 (14.0) (28)% 88.3 77.0 (11.3) (13)% 18.3 13.1 (5.1) (28)% 29.9 26.0 (3.9) (13)%
Real estate
10.2 4.3 (5.9) (58)% 13.9 16.0 2.0 15%
Pension
12.9 11.4 (1.5) (12)% 24.4 23.0 (1.4) (6)%
Stock transfer agency
7.3 6.0 (1.2) (17)% 14.0 10.5 (3.5) (26)%
Banking related businesses
71.2 80.1 8.8 12% 140.4 143.0 2.5 2%
Conventional banking businesses
41.5 47.1 5.5 13% 82.9 78.0 (4.9) (6)%
[Corporate loans, etc.]
[23.2] [24.3] [1.0] [5%] [44.4] [44.0] [(0.4)] [(1%)]
[Bond investments, etc.]
[18.3] [22.8] [4.5] [25%] [38.5] [34.0] [(4.5)] [(12%)]
Loans to individuals
21.7 24.1 2.4 11% 45.3 47.0 1.6 4%
Real estate asset finance
4.8 5.1 0.2 6% 10.9 11.0 0.0 0%
Alternative investments
0.9 2.4 1.5 170% (2.4) 4.0 6.4
[4.0] [1.2] [(2.7)] [(68%)] [5.3] [3.0] [(2.3)] [(43%)]
[CDO unrealized gains/losses]
[(3.1)] [1.1] [4.3]
[1.1] [8.8]
1.0 (0.9) (47)% 3.5 3.0 (0.5) (16)%
Gross operating profit
121.4 116.2 (5.1) (4)% 228.7 220.0 (8.7) (4)%
Investment trust & Annuity insurance Other banking related businesses
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Result of 1H.FY3/10 Despite decrease in gross operating profit and increase in credit costs, net income for 1H.FY3/10 increased YoY, as stock related profit recovered significantly YoY.
Factors for Increase/Decrease in Net Income （CMTB+CMAB, non-consolidated）
(5 .1 )
2 4 .8
0 .0 1 H .F Y 3 /0 9 1 H .F Y 3 /1 0 In cre ase fac to r D e crea se fac to r 6 .9
1 7 .1
(1 0 .6 ) 1 6 .4
G ro ss o p era tin g p ro fit O p e ra tin g e x p e n se s
（ J P Y b n ） 7 .6
N e t sto c k re late d p ro fit C re d it co sts O th e rs （Of which ｌoss on devaluation of stocks 15.0）
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5% 2% 1% 5% 6% 5% 9% 11% 10% 6% 4% 13% 11% 5% 11% 20% 21% 40% 17% 20% 23% 19% 21% 3% 2% (1)% 2% 2% FY3/03 FY3/09 1H.FY3/10
37% 59% 64%
Strategic Businesses
Banking Related Businesses
Conventional Banking Businesses
Breakdown of gross operating profit by business segment (CMTB+CMAB, non-consolidated) Recomposition of Revenue Structure
１６％ ３６％
◇Corporate loans, etc. ◇Bond investments, etc.
Sum of loans to individuals, investment trust & annuity insurance, and real estate
◆Loans to individuals ◇Real estate asset finance ◇Alternative investments ◇Other banking related businesses ◆Investment trust & Annuity insurance ◆Real estate ◇Pension ◇Stock transfer agency ◇Other asset management businesses
３９％
Banking Related Businesses Asset Management Businesses
4% 2% 1%
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Management Direction
Increase in gross operating profit through recomposition
Investment trust & Annuity insurance Real estate Loans to individuals
Direction for 2H.FY3/10
Continue to focus as priority segments in light of medium to long term growth potential, despite slow market recovery in the short term Regarding corporate loans, focusing on loans with good risk/return profile, while paying attention to worsening of credit risks Continue to promote positively with attention to profitability
Shifting from revenue structure relying on conventional banking businesses Concentration on high margin & high growth area within strategic businesses Investment trust & Annuity insurance Real estate Loans to individuals
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10
36% 7% 57%
27% 42% 22% 3% 6%
国内銀行
High quality loan portfolio leads to limited downside risk
*1
Corporate Loans
36% 7% 25% 28% 2% 2%
0% 20% 40% 60% 80% 100%
当社
Loans by Industry *1・10 （As of 9/09） Loans by Size of Borrowers＊10 （As of 9/09 ）
Consumer finance related*2： 1％ We have curtailed our exposure to consumer finance companies, which include sales finance companies and credit card
consumer finance companies to total loans: 0.1% Real estate companies： 9％ Including ratio of loans to large companies and their group companies to total loans: 4.0％ Real Estate Asset Finance*3
Housing Loan and others Loss rate*4 on housing loans: 0.08% （Annualized rate of pay-out on guarantees by Chuo Mitsui Guarantee in 1H.FY3/10)
Ratio of Housing Loans to Total Loans*11 (Comparison of Major Banks） （As of 9/09）
Construction : 1％ SMEs*9 Real Estate Asset Finance*3
Mid-sized companies*8 Large Companies*7 Others*6 Loans to individuals
*1. Managerial accounting-basis, CMTB non-consolidated. Balance at period end, post-securitization *2. Loan providers that charge interest rates in excess of the upper limit set by the Interest Rate Restriction Law (“Gray Zone” Interest Rates) *3. Does not include bond-types *4. Rate of pay-out on guarantees by Chuo Mitsui Guarantee (based on number of pay-outs) *11. Source: Company disclosures As of 9/09, non-consolidated, post-securitization
35% 14% 22% 16% 24% 0% 10% 20% 30% 40% CMTH A Ｂ Ｃ Ｄ
CMTH *1 Domestic banks total
*5
*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 other than large companies and SMEs *9. SMEs: capital of JPY 300 mn or less or less than 300 employees *10. Applies new category of survey on ”Loans and Discounts outstanding by Sector” by Bank of Japan.
11 291.7 283.1 165.2 89.1 61.5 76.0 122.3 130.0 410.6 184.9 94.9 71.8 82.8 79.5 16.7 15.6 260.1 160.9 144.3 155.6 139.1 145.7 468.0 702.3 4.9% 1.4% 1.5% 7.0% 1.7% 1.7% 1.8% 2.8% 250 500 750 3/03 3/04 3/05 3/06 3/07 3/08 3/09 9/09 3/10 (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, Banking a/c + Trust a/c)
1% level
（Outlook）
As of
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20.0 11.0 21.2 9.5 168.0 121.5 58.3 65.6 29.7 43.9 0.23% 0.2% level 0.11% 0.22% 0.62% 0.49% 1.22% 1.62% 0.75% 0.35% 100 200 300 FY3/02 FY3/03 FY3/04 FY3/05 FY3/06 FY3/07 FY3/08 FY3/09 1H.FY3/10 FY3/10
0.0% 0.5% 1.0% 1.5% 2.0%
Credit Costs Credit Cost Ratio
（JPY bn）
*1 Annualized rate of 1H.FY3/10
（Outlook）
Credit Costs and Credit Cost Ratio to Loans and Guarantees (CMTB, non-consolidated)
＊1
（Credit costs/Total loans and guarantees） As of
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Unrealized losses turned to unrealized gains due to stock market recovery and tightening of credit risk spread
Details of market value available securities (CMTB, non-consolidated)
（Yen bn）
As of 9/09(a) As of 3/09(b) Change(a-b) Acquisition Cost Unrealized Gains/Losses Unrealized Gains/ Losses Ratio Acquisition Cost Unrealized Gains/Losses Acquisition Cost Unrealized Gains/Losses Available-for-sale securities
3,254.5 43.7 1.3% 3,400.8 (100.1) (146.2) 143.9
Japanese Stocks
427.9 64.3 15.0% 419.6 (40.4) 8.2 104.8
Japanese Bonds
1,792.4 (3.7) (0.2)% 2,043.2 (18.4) (250.8) 14.6
Others
1,034.1 (16.7) (1.6)% 937.8 (41.2) 96.2 24.4
As of 9/09(a) As of 3/09(b) Change(a-b) (Breakdown of the "Others" of available-for-sale securities) Acquisition Cost Unrealized Gains/Losses Unrealized Gains/ Losses Ratio Acquisition Cost Unrealized Gains/Losses Acquisition Cost Unrealized Gains/Losses Foreign government bonds
380.6 0.6 0.1% 217.0 1.1 163.5 (0.5)
US agency MBS
317.9 (0.6) (0.1)% 378.0 0.4 (60.1) (1.1)
Overseas Investment
212.1 (6.0) (2.8)% 210.3 (17.7) 1.7 11.6
(Excluding foreign government bonds, US agency MBS)
CDO （※1）
10.0
（※2）
5.0 (0.0) (0.0)% 9.8 (0.2) (4.8) 0.2
Investment trust (credit funds) （※3）
24.9 (1.6) (6.7)% 24.9 (6.2)
Investment trust (equity funds, etc.) （※4）
12.6 (1.7) (13.6)% 10.7 (1.3) 1.8 (0.4)
Foreign bonds, etc. （※5）
159.5 (2.6) (1.6)% 154.7 (9.8) 4.8 7.1
Japanese stock related investment （※6）
35.3 (5.3) (15.0)% 38.3 (7.2) (3.0) 1.9
RMBS （※7）
7.0 (0.1) (1.8)% 7.5 (0.1) (0.5) 0.0
Others(credit linked note etc.) （※8）
80.9 (5.2) (6.4)% 86.4 (17.6) (5.4) 12.4
（※1）Managed synthetic CDO （※5）Overseas corporate bonds, etc. （※2）Investments mainly to public and corporate bonds, domestic and foreign （※6）Long-short funds related to Japanese stocks, etc. （※3）Investments mainly to bank loans to US companies （※7）ABS securitizing the domestic housing loans （※4）Market neutral funds of US equities, etc （※8）Credit linked note reference to domestic companies, etc. （*） Credit derivative portion of this CDO is bifurcated and unrealized loss as of 9/09 was JPY9.5bn. Unrealized gains/losses of derivative portion for CDO have already been accrued as derivative profit/loss since FY3/08. （*） （*）
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Result of 1H.FY3/10 Outlook for FY3/10 Fee income JPY26.0bn
（JPY3.9bn decrease YoY) Enhance product lineup that will fit customers’ needs
Net increase of JPY400.0bn
（13% increase compared to end-3/09) Focus on strengthening the profit by flexible, agile and risk-return conscious interest rate setting
Priority Businesses
Balance of corporate loans stayed almost flat, due to declining of borrowing needs by domestic corporations, in accordance with the recovery of corporate bond/CP market Build sound portfolio by extending loans with attractive risk-return profile
Continuous focus as Priority Businesses Fee income JPY16.0bn
（JPY2.0bn increase YoY) Increase number of the transactions by identifying needs of investors and companies
Net increase of JPY257.6bn
(9% increase compared to end-3/09) Large increase by route sales channel. On the other hand, intense interest rate competition continued
Fee income: JPY4.3bn
(JPY5.9bn decrease YoY) Confirmed sign of an upward momentum, mainly of foreign investors and the end users
Fee income: JPY13.1bn
（JPY5.1bn decrease YoY) Sales amount is on a recovering trend Fee income has increased compared to 2H. FY3/09
Decline of borrowing demands Banking related Businesses Segments Housing Loans Investment Trust, Annuity Insurance Real Estate Corporate Loans
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4.7 3.4 3.7 4.0 5.1 7.0 4.2 18.3 11.6 13.1 6.5 4.1
5 10 15 20 1H.FY3/09 2H.FY3/09 1H.FY3/10 （Yen bn）
4.7 3.4 3.7 4.0 5.1 7.0 4.2 18.3 11.6 13.1 6.5 4.1
5 10 15 20 1H.FY3/09 2H.FY3/09 1H.FY3/10 （Yen bn）
127.7 64.0 106.0 236.0 133.1 189.2 69.1 108.2 83.2 100 200 300 1H.FY3/09 2H.FY3/09 1H.FY3/10 （Yen bn）
Investment trust sales amount Annuity insurance sales amount 919.7 1,049.8 1,177.7 1,266.7 1,096.2 1,242.1 500 1,000 1,500 9/08 3/09 9/09 Investment trust Annuity insurance （Yen bn)
Result of 1H.FY3/10 Sales amount and fees are on a recovering trend compared to 2H. FY3/09
（Yen bn）
*1
*1 Including wrap account
Investment Trust & Annuity Insurance related Revenues
Breakdown of Investment Trust & Annuity Insurance related Revenue Investment Trust & Annuity Insurance related Revenues Investment Trust & Annuity Insurance Balance (Market value basis) Investment Trust & Annuity Insurance Sales Amount Breakdown of Investment Trust & Annuity Insurance related Revenue
Breakdown of Investment trust & Annuity insurance related revenues*2 by “flow- based” and “stock-based” fees
Although flow-based fees decreased sharply due to decrease in sales amount, stock-based fees underpinned the total revenue to a certain degree
＊2 Total of Annuity insurance sales fee , Investment trust sales fee and Trust fee & Investment advisory fee for Investment trust
a b c:b-a d (Yen bn) CMTB+CMAB, non-consolidated Actual Outlook e:b/d Sales Fee 1H.FY3/09 1H.FY3/10 Chg. FY3/10 Progress Investment trust sales fee
6.5 5.1 (1.3) 10.0 52%
Annuity insurance sales fee
7.0 4.2 (2.7) 8.5 50%
Total
13.5 9.4 (4.1) 18.5 51%
Trustee Fee & Investment Advisory Fee for Investment Trust Trustee fee
2.8 2.2 (0.6) 4.5 50%
Investment advisory fee
1.8 1.4 (0.3) 3.0 49%
Total
4.7 3.7 (1.0) 7.5 50%
Grand total
18.3 13.1 (5.1) 26.0 51%
Annuity insurance Investment trust related fee (trustee fee & investment advisory fee) Investment trust sales fee
*1 *1
1H.FY3/09 1H.FY3/10 7.5 5.5 13.1 9.6 8.6 18.3 Flow Stock
As of
*1
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2.1 2.0 1.6 8.0 1.6 2.6 10.2 3.6 4.3 95 64 72
0.0 10.0 20.0
1H.FY3/09 2H.FY3/09 1H.FY3/10
(Yen bn)
150 (Numuber of contract) Real estate brokerage fee Real estate trust fee Number of brokerage contracts 5,250.7 5,180.5 5,123.4 1,000 2,000 3,000 4,000 5,000 9/08 3/09 9/09
(Yen bn）
Result of 1H.FY3/10 Investment appetite of end users and foreign investors are under way for recovery. Fee level has increased compared to 2H. FY3/09 but decreased YoY.
Percentage of brokerage fees earned from investor related deals to total brokerage fees
Breakdown of Real Estate Revenue Trend of Real Estate Revenue Balance of Securitized Real Estate
a b c:b-a d (Yen bn) CMTB, Actual Outlook e:b/d non-consolidated 1H.FY3/09 1H.FY3/10 Chg. FY3/10 Progress Real estate brokerage fee
8.0 2.6 (5.4) 12.0 22%
Real estate trust fee
2.1 1.6 (0.4) 4.0 42%
Total
10.2 4.3 (5.9) 16.0 27%
～ ～
As of
＊
＊Including brokerage of real estate trust beneficiary rights
18 30 29 43 20 40 60 1H.FY/08 1H.FY3/09 1H.FY3/10
（Number of condominiums : thousands ）
50 100 150 200 250
（Yen bn） New Condominium sales（Metropolitan area＋Kinki area） CMTB's new housing loan origination for new condominium buyers
378.7 362.0 344.9
3,094.7 3,362.3 3,602.8
3,257.9 3,000.2 2,715.9
1,000 2,000 3,000 9/08 3/09 9/09
（Yen bn） Housing loans Sole proprietorships, etc 7% 1% 92%
Outstanding balance of housing loan is increasing steadily. Continue promoting positively with attention to profitability
1H.FY3/10, Numbers of new loan originated
Over the counter, etc. Route sales channel Client company channels
*
Balance of Loans to Individuals Housing Loans Origination by Channel 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 )
* Source: Real Estate Economic Institute Co.,Ltd.
Housing loan results for 1H.FY3/10
“Route sales” (major home builders, real estate agents and developers channel) strategy successfully differentiates CMTB from competitors
New origination: JPY412.6bn (+JPY81.8bn against plan） Net increase: JPY257.6bn (+JPY126.3bn against plan)
Post securitization
As of
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20 (Y e n b n ) a b c:b -a C M TH , C o n so lid a te d 3 /0 9 9 /0 9 C h a n g e To ta l C a p ita l
891 .8 9 94 .1 10 2.3
Tie r 1
646 .6 7 12 .0 6 5.4
Tie r 2
267 .0 3 11 .4 4 4.4
R isk w e ig h te d a sse ts
7 ,39 7.0 8,0 61 .5 66 4.5
C a p ita l A d e q u a cy R a tio
1 2.0 5% 12 .33 % 0.2 8%
Tie r 1 R a tio
8.7 4% 8 .83 % 0.0 9%
282.5 432.2 400.2 363.2 200.3 200.3 86.4 32.0 37.0 76.5 100 200 300 400 Disributable dividend Public funds (book value) Buyback Offering
*1 9/09 is preliminary
While risk weighted assets increased by the changes of parameters, total capital increased by accumulated profit and other factors As a result, both capital adequacy ratio and Tier 1 ratio rose compared to end-3/09
Class Ⅱ(JPY 150.0bn) and Class Ⅲ(JPY 50.35bn) preferred stocks were converted to 500,875,000 shares of common stocks on August 1, 2009 →Shareholder： Resolution and Collection Corporation (“RCC”) Number of total outstanding common stocks before July 31, 2009: 1,157,551,267 shares Number of total outstanding common stocks on and after August 1, 2009: 1,658,426,267 shares Ratio of RCC’s share to total outstanding common stocks: 30.2%
Chuo Mitsui Trust Group is working towards repayment of public funds through sales in the market and/or repurchases as soon as possible, considering the global discussions for tightening capital adequacy ratio regulation and other issues Conversion of Preferred Stocks to Common Stocks
Capital Adequacy Ratio*1 (CMTH, consolidated) Repayment of Public Funds
*2 Distributable profit amount of CMTH, non-consolidated. （Capital surplus（except Capital reserve）＋Retained earnings（except Earned reserve）-Treasury stock）
《Reference》 ［Tier１－Preferred Stocks－Preferred Securities －minority interest in subsidiaries］ ／Risk Weighted Assets
6.50%
［Tier１－Preferred Stocks－Preferred Securities －minority interest in subsidiaries－Net Deferred Tax Assets］ ／Risk Weighted Assets
4.71%
（Yen bn）
＊2
3/06 3/07 3/08 3/09 As of 9/09
7/06 Offering 7/07 Offering 7/08 Offering + Buyback
As of
(As of 9/09)
21
22
7,313.8 6,419.9 6,930.2 7,118.3 7,359.6 7,396.5
3,000 4,500 6,000 7,500 9/08 3/09 9/09
（Yen bn） Book value basis Market value basis
# of shareholders under administration （As of 9/09） # of listed corporate clients （As of 9/09）
CMTH Group 25.4% CMTH Group 24.0% Result of 1H.FY3/10 Volume of entrusted funds and profit are recovering moderately according to the upturn of stock market Result of 1H.FY3/10 Impact of decreasing revenue from dematerialization has already been included in outlook for FY3/10 Profit hovered steadily due to increase of demand for preparing the shareholders’ list for every quarter
～ ～
Balance of Entrusted Pension Assets*1 under Management Pension Business related Revenue
*1 Includes discretionary assets
Market Share ＊2 Stock Transfer Agency Business related Revenue
a b c:b-a d (Yen bn) CMAB, Actual Outlook e:b/d non-consolidated 1H.FY3/09 1H.FY3/10 Chg. FY3/10 Progress Fees received
14.9 13.2 (1.6) 27.0 49%
Fees paid (minus)
1.9 1.8 (0.1) 4.0 46%
Total
12.9 11.4 (1.5) 23.0 50%
*2 CMTB+Tokyo Securities Transfer Agent As of a b c:b-a d (Yen bn) CMTB, Actual Outlook e:b/d non-consolidated 1H.FY3/09 1H.FY3/10 Chg. FY3/10 Progress Fees received
12.8 10.4 (2.3) 19.0 55%
Fees paid (minus)
5.5 4.3 (1.1) 8.5 51%
Total
7.3 6.0 (1.2) 10.5 58%
23
Outstanding balance decreased due to selective perspective concerning the risk return profile ＜Reference＞
（Breakdown by region） （Breakdown by type）
Balance of Real Estate Asset Finance
Portfolio breakdown by LTV and DSCR (As of 9/09) LTV*1 below 70%: 89%
% DSCR*2 over 2.0x: 88% %
*2 Excluding REIT type and development type
Limited downside risk even during correction phase of the market Promoting positively subject to attractive return, with the enhanced risk assessment Solid portfolio based on stringent asset value assessment
*1 Excluding REIT type
877.6 848.1 768.9 200 400 600 800 9/08 3/09 9/09
As of 6% 15% 19% 60% 5 central areas in Tokyo All Tokyo areas excluding the 5 central areas Other areas in metropolitan (Kanto) Other local areas
60% 14% 9% 17%
Fund investment type Securitization type Development type REIT type
（As of 9/09） （As of 9/09）
24
4,791.8 4,749.3 4,971.0 5,004.9 2,000 4,000 6,000 3/07 3/08 3/09 9/09
Demand for borrowing from companies are weakening due to recovery of capital market. Increase of outstanding balance for corporate loans are softening, as the result of focusing more on creating the loan portfolio with sound risk-return profile
（Yen bn） ＜(42.5)＞ ＜+221.7＞ ＜+33.9＞
Increase of outstanding balance is below initial plan (JPY210bn increase YoY), as the result of focusing more on profitability.
Corporate Loan Spread（domestic）*2
*2 Weighted average spread of new transactions on each term （Excluding foreign currency loans, loans to money market brokers, private bonds）
Balance of Corporate Loans（domestic）*1
*1 Including investments to privates bonds issued as an alternative to loans Excluding foreign currency loans and yen loans to non-resident As of
0.51% 0.53% 0.50% 0.45% 0.46% 0.40% 0.45% 0.50% 0.55% 1H.FY3/08 2H.FY3/08 1H.FY3/09 2H.FY3/09 1H.FY3/10
post securitization
25
0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% 1.6% 1.8% 2.0%
Average yield on loans and bills discounted Loans to individuals Real estate asset finance Loans to corporate borrowers
Average yield on deposits and principals
Net interest margin 3M TIBOR (average)
Loans to individuals with good risk-return profile still drive the profit. (1H.FY3/10 Housing loan loss rate*1: 0.08%)
*3 *5 *6
Trend of Yields*2
Approximately 40% of total loans are loans to individuals , which has good risk-return profile
*2 Banking A/C(domestic funds) + JOMTs + loan trusts + yen loans to non-resident, excluding effect of securitization profit and amortization *3 Corporate loans + corporate restructuring & revitalization related finance,etc. *4 Excluding yen loan to non-resident *5 Excluding bond-type *6 Average yield on loans and bills discounted – average yield on deposit and principals
Recompositon
25% 33% 37% 41% 71% 57% 53% 51% 8% 10% 10% 4% 0% 20% 40% 60% 80% 100% FY3/03 1H.FY3/08 1H.FY3/09 1H.FY3/10 Loans to individuals Real estate non-recourse loans Corporate loans
Recomposition of Loan Portfolio (average balance *2)
*1 Annualized rate of pay-out on guarantees by Chuo Mitsui Guarantee in 1H.FY3/10
*3
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(Yen bn)
1H. FY3/08 1H. FY3/09 1H. FY3/10 Outlook FY3/10 Buyout investment related
2.1 3.0 1.2 2.0
Securitized product investment related
1.4 1.7 1.4 3.0
Equity investment related
7.9 0.0 0.4 0.5
Hedge fund investment related
0.9 1.6 (0.7) (0.5)
Total of investment return
12.3 6.5 2.4 5.0
CDO unrealized gains/ losses
1.1 1.1
Grand total
12.3 3.3 3.5 6.0
Result of 1H.FY3/10 Profit from private equity fund (buy-out, growth) remains at low level, but the segment profit is about same level YoY due to improvement of CDO unrealized gain/loss
*1 Gross operating profit （before funding costs） *2 Mostly Chuo Mitsui Capital related *3 Credit derivative portion of CDO is bifurcated and unrealized gains/losses are posted as profit/loss each year.
*2 *3
Return on Alternative Investment by Type*1 Alternative Investments: Actual
(Yen bn) Actual Actual 1H.FY3/09 1H.FY3/10
a
Avg. balance
580.0 410.0 b
Investment return total*1
6.5 2.4 b/a
Rate of return (Annualized)
2.2% 1.1%
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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