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Analyst Meeting Analyst Meeting Presentation Material Presentation Material November 29, 2006 Mitsui Trust Financial Group Agenda . Management Strategies Management Direction Enhancement of Profitability Financial Summary
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Mitsui Trust Financial Group
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Mitsui Trust Financial Group
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Mitsui Trust Financial Group
Management Direction
To complete final disposal of NPLs & reduction of equity portfolio
Turn new businesses to profit drivers
Enhancement of concentration
business segments
Increasing strategic expense while maintaining efficient management Maintenance and improvement of sound financial base
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Mitsui Trust Financial Group
FY3/07 Plan 1H.FY3/07 Actual Items
Enhancement of Profitability Loan balance* of ¥1,991.3bn （¥72.4bn increase from 3/06） Sales of ¥441.1bn (Record High)
（¥63bn increase, or 17% increase YoY）
Housing loans Investment trust & Annuity insurance sales Revenues of ¥16.1bn (Record High)
（¥3.1bn increase, or 24% increase YoY）
Real estate related revenue Revenue: ¥37bn
¥2bn increase from initial plan
Sales amount: ¥940bn End balance increase: ¥226bn “Business loans” Loan balance* of ¥26.8bn
（¥20.2bn increase from 3/06）
Corporate restructuring & revitalization finance Loan balance of ¥60.7bn
（¥19.5bn increase from 3/06）
Loan end balance: ¥73bn
¥23bn increase from initial plan
Loan end balance: ¥104bn
¥2bn increase from initial plan (after securitization)
*1 CMTB, non-consolidated *2 MTH, consolidated
(CMTB’s portion)
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Mitsui Trust Financial Group
a b c:b-a d e f:e-d (Yen bn) CMTB+MATB
Actual e:d-b
Combined totals 1H.FY3/06 1H.FY3/07 Change % FY3/06 FY3/07 Change % Gross operating profit *1
129.6 124.6 (4.9) (4)% 283.3 278.0 (5.3) (2)%
Of which housing loan securitization profit
8.8
[minus]
49.6 47.8 (1.7) (3)% 100.2 98.0 (2.2) (2)%
Overhead ratio
38% 38% 0% 0% 35% 35% 0% 0%
Pre-provision profit *2
80.0 76.8 (3.2) (4)% 183.0 180.0 (3.0) (2)%
Net stock related profit
9.9 7.2 (2.6) (26)% 26.5 5.0 (21.5) (81)%
Of which capital gain on alternative investments
2.5 3.5 1.0 40% 3.6 3.5 (0.1) (3)%
Credit Costs [minus]
22.9 13.6 (9.3) (41)% 65.6 20.0 (45.6) (70)%
Recurring profit
63.4 67.2 3.8 6% 125.2 155.0 29.8 24%
15.8
15.8
[minus]
0.0 10.6 10.5
43.0 42.9
59.8 70.1 10.2 17% 118.2 120.0 1.8 2%
MTH, Consolidated 1H.FY3/06 1H.FY3/07 Change % FY3/06 FY3/07 Change % Recurring profit
67.6 68.4 0.8 1% 138.3 160.0 21.7 16%
Net income
58.6 66.9 8.3 14% 119.6 120.0 0.4 0%
ROE *3
22% 21% (1)% 23% 19% (4)%
Gain on partial w ithdraw al of employee retirement benefit trust
1H.FY3/07 Highlights & FY3/07 Outlook
*1 Before trust a/c credit costs *2 Effective net operating profit before trust a/c credit costs & provision(reversal) of general reserve *3 Calculated using average balance of outstanding capital
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Mitsui Trust Financial Group
a b c:b-a d e f:e-d
（Yen bn）
CMTB+MATB Actual Outlook Combined totals 1H.FY3/06 1H.FY3/07 Change % FY3/06 FY3/07 Change % Asset management business
59.6 63.2 3.6 6% 125.9 138.0 12.1 10% 17.2 15.5 (1.7) (10)% 34.4 34.5 0.1 0%
Of which investment trusts
5.0 9.6 4.6 92% 12.2 21.0 8.8 72%
Real estate
13.0 16.1 3.1 24% 30.3 37.0 6.7 22%
Stock transfer agency
8.1 7.8 (0.3) (4)% 16.7 15.0 (1.7) (10)%
Pension
12.2 13.2 1.0 8% 25.7 26.5 0.8 3%
Securities
5.0 6.5 1.5 30% 10.5 14.0 3.5 33%
Of which Investment advisory fee & trust fee
2.7 4.3 1.6 59% 6.1 9.0 2.9 48%
Banking business
70.0 61.4 (8.6) (12)% 157.4 140.0 (17.4) (11)%
Loans to individuals
16.9 18.3 1.4 8% 33.8 38.5 4.7 14%
Real estate asset finance
6.3 4.0 (2.3) (37)% 11.5 8.0 (3.5) (30)%
Alternative investments
2.3 6.2 3.9 170% 24.5 18.5 (6.0) (24)%
Housing loan securitization profit
8.8
129.6 124.6 (4.9) (4)% 283.3 278.0 (5.3) (2)%
Operating expenses
49.6 47.8 (1.7) (3)% 100.2 98.0 (2.2) (2)%
Pre-provision profit
80.0 76.8 (3.2) (4)% 183.0 180.0 (3.0) (2)%
Investment trusts & Annuity insurance sales CMTB MATB
Revenues by Business Unit
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Mitsui Trust Financial Group
Loans to individuals
(Housing loans, etc.)
Real estate asset finance Alternative investments Asset management business
—Investment trust & Annuity insurance sales —Real estate business —Stock transfer agency —Pension/Securities, etc.
New Businesses
—“Business loan” —Corporate restructuring & revitalization finance
Recomposition of Revenue Structure Conventional Banking Business Corporate loans Bond investment, etc. Strategic Products
Composition of gross operating profit
28% 36% 44% 50% 49% 11% 12% 12% 15% 14% 56% 44% 31% 25% 25% 2% 0% 2% 7% 5% 9% 1% 3% 3% 3% 4% 5% 4%
FY3/04 FY3/05 FY3/06 1H.FY3/07 FY3/07
(Plan)
69% 44% 56% 75% 75%
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Mitsui Trust Financial Group
9,561 9,957 10,200 9,609 19 17 16 17
9,000 9,500 10,000 10,500 11,000 3/05 3/06 9/06 3/07 15 16 17 18 19 20 Bank employees + temporary staffs Consulplazas
14.3 31.3 17.2 23.7 29.9 31.1
15 30 45 60 1H.FY3/05 1H.FY3/06 1H.FY3/07
Personnel Non-Personnel Tax
(Yen bn)
51.5 31.3 18.0 Proactive investment of management resources in high margin & high growth business segments Operating Expenses Strategy Maintain current efficiency level 9/06 (actual) : 38.4% OHR
Operating Expenses (CMTB+MATB)
* Consulplazas: in-store mini-branches # of Employees (MTH, consolidated) & # of Consulplazas * 41% 38% 38% 0% 10% 20% 30% 40% 50% 1H.FY3/05 1H.FY3/06 1H.FY3/07 (%) OHR
Operating Expenses YoY Comparison （CMTB+MATB）
1H.FY3/07 57.7 47.8 49.6 1H.FY3/07 ：Excluding allowance for retirement benefit
Substantial increase in OE due to strategic investments of management resources
As of
(employees) (Consulplazas)
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Mitsui Trust Financial Group
1% 2% 2% 3% 30% 35% 40% 45% 50% 55%
Profitability & Efficiency: 1H.FY3/07 Comparison of Major Banking Groups
Gross operating profit Total assets Overhead ratio = 38.4% =2.0% Gross operating profit Total assets
(end balance）
High ↑ Profitability ↓ Low Low ← Efficiency → High
Overhead ratio
Other major banking groups
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Mitsui Trust Financial Group
FY3/07 Plan 1H.FY3/07 Actual Items
Strengthening of Balance Sheet
Actual: 60% of Tier1 from 62% in 3/06 Actual: 16% of Tier1 from 18% in 3/06 NPL ratio *1 Credit costs *1 Reduction of equity portfolio*2 DTAs *2 Maintain under 2% Estimate: ¥20.0bn Maintain same level Lower 10% of Tier1
*1 CMTB, Non-consolidated *2 MTH, Consolidated
Retained earnings *1 Increase to ¥350bn level Actual: 1.8% Same level as of 3/06 Significantly decreased to ¥13.6bn from ¥22.9bn of 1H.FY3/06 ¥48.7bn Increased to ¥302.7bn
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Mitsui Trust Financial Group
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Mitsui Trust Financial Group
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Mitsui Trust Financial Group
506.6 717.7 919.8 1,057.2 954.8 868.7 499.5 203.3 300 600 900 1,200 As of 3/04 3/05 3/06 9/06 Investment trust Annuity insurance
(Yen bn)
2.5 4.6 4.0 5.0 9.6 4.3 8.3 12.1 5.8 1.2 2.7 1.8 4 8 12 16 20
(Yen bn) 135.9 160.2 343.8 97.2 152.8 217.9
100 200 300 400 500 1H.FY3/05 1H.FY3/06 1H.FY3/07
(Yen bn)
Annuity insurance sales amount Investment trust sales amount
By providing wide selection of products geared toward clients’ needs and by allocating sufficient human resources, we will further develop and proactively market our investment trust products
Investment trust & Annuity insurance sales amount 14.1 19.8 19.7
1H.FY3/05 1H.FY3/06 1H.FY3/07
Investment trust & Annuity insurance related revenue
288.7 378.1 441.1
Investment trust & Annuity insurance balance
Annuity insurance sales fee Investment trust related fee (trustee fee & investment advisory fee) Investment trust related fee（sales fee） (Ref) Investment management fee of CMAM*
Breakdown of Investment trust & Annuity insurance related revenue
a b d e (Yen bn) CMTB Actual c:b-a Actual Outlook f:e-d 1H. 1H. FY3/06 FY3/07 Chg. FY3/06 FY3/07 Chg. Investment trust related
5.0 9.6 4.6 12.2 21.0 8.8
Annuity insurance related
12.1 5.8 (6.3) 22.1 13.5 (8.6)
Total
17.2 15.5 (1.7) 34.4 34.5 0.1
MATB Investment advisory fee
1.0 1.8 0.8 2.2 4.0 1.8
Trustee Fee
1.7 2.5 0.8 3.9 5.0 1.1
Total
2.7 4.3 1.6 6.1 9.0 2.9
Grand total 19.8 19.7 (0.1) 40.5 43.5 3.0
(Reference) Investment management fee of CMAM* 2.5 4.6 2.1 6.1 10.0 3.9 * Chuo Mitsui Asset Management Co., Ltd.
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Mitsui Trust Financial Group
3,671.4 2,999.7 2,140.9 1,485.4
1,000 2,000 3,000 4,000 As of 3/04 3/05 3/06 9/06 1.5 1.9 2.1 8.6 12.6 2.6 2.5 3.5 1.5 10.5 0.1 0.1 4 8 12 16
Posted record high profit from steady increase in brokerage fees related to funds & investors Total real estate related profit showed strong growth due to increase in securitization of real estate
Balance of securitized real estate
(Yen bn） 1H.FY3/05 1H.FY3/06 1H.FY3/07 (Yen bn)
11.3 14.6 16.2
Real estate equity investment Real estate trust fee Real estate brokerage fee (Ref) Brokerage fee of Chuo Mitsui Realty
Growth of real estate related revenue Breakdown of real estate related revenue
a b d e (Yen bn) CMTB Actual c:b-a Actual Outlook f:e-d 1H. 1H. FY3/06 FY3/07 Chg. FY3/06 FY3/07 Chg. Brokerage fee 10.5 12.6 2.1 24.5 30.0 5.5 Securitization related 2.5 3.5 1.0 5.8 7.0 1.2 Total 13.0 16.1 3.1 30.3 37.0 6.7 Equity investment profit 1.5 0.1 (1.4) 5.1 1.5 (3.6) Total 14.6 16.2 1.6 35.4 38.5 3.1 (Reference) 1.9 2.1 0.2 4.6 4.5 (0.1)
Brokerage fee of Chuo Mitsui Realty
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Mitsui Trust Financial Group
# of shareholders under administration （As of 9/06) # of listed company clients
（As of 9/06)
Our Group 26% Our Group 25%
Maintain high market share by providing high value-added services, such as IT online system for shareholders’ meeting and verification
51 61 71 77 110 129 136 142 30 60 90 120 150 FY3/04 FY3/05 FY3/06 1H.FY3/07
1H. Full FY (Plan) Number of newly acquired company clients Industry position
a b d e (Yen bn) CMTB Actual c:b-a Actual Outlook f:e-d 1H. 1H. FY3/06 FY3/07 Chg. FY3/06 FY3/07 Chg. Fees received
13.5 13.5 0.0 27.7 25.8 (1.9)
Fees paid (Minus)
5.3 5.7 0.4 10.9 10.8 (0.1) 8.1 7.8 (0.3) 16.7 15.0 (1.7)
(# of companies) Stock transfer agency business related revenue
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Mitsui Trust Financial Group 4,721.7 6,133.4 9,208.4 9,914.5 2,500 5,000 7,500 10,000 As of 3/04 3/05 3/06 9/06
(Yen bn)
8,123.5 7,950.9 6,720.5 6,949.0 5,000 6,000 7,000 8,000 As of 3/04 3/05 3/06 9/06
(Yen bn)
Pension: Negative impact of “Daiko Henjo” is over Both entrusted assets & related profit showed steady growth Securities: Steady increase in balance of entrusted investment trust assets contributed to profit increase
Balance of entrusted pension assets & discretionary assets under management (Market value basis) Balance of entrusted investment trust (Net asset value basis)
a b d e (Yen bn) MATB Actual c:b-a Actual Outlook f:e-d 1H. 1H. FY3/06 FY3/07 Chg. FY3/06 FY3/07 Chg. Pension business Fees received 14.8 16.0 1.2 31.0 Fees paid (minus) 2.6 2.8 0.2 5.3 Total 12.2 13.2 1.0 25.7 26.5 0.8 26.5 a b d e (Yen bn) MATB Actual c:b-a Actual Outlook f:e-d 1H. 1H. FY3/06 FY3/07 Chg. FY3/06 FY3/07 Chg. Securities business Fees received 6.3 7.8 1.5 13.3 Fees paid (minus) 1.3 1.3 0.0 2.8 Total 5.0 6.5 1.5 10.5 14.0 3.5 14.0
Pension business related revenue Securities business related revenue
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Mitsui Trust Financial Group
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Mitsui Trust Financial Group Appropriate risk control adopted in constructing loan portfolio, such as stringent selection of loans to consumer finance companies Weight of comparatively high margin loans to individuals and real estate non-recourse loans, etc. exceeded 40% Aiming to expand our new “Business Loans” and Corporate restructuring and revitalization finance
3% 8% 81% 73% 63% 62% 59% 58% 2% 1% 1% 9% 8% 9% 32% 31% 19% 24% 28% 29%
0% 20% 40% 60% 80% 100% 3/00 3/02 3/04 3/06 9/06 3/07
Corporate loans Loans to individuals Real estate non-recourse loans Business loan, corporate restructuring & revitalization finance
Recomposition of loan portfolio
After housing loan & real estate asset finance securitization
19% 37% 38% 41%
(Plan)
42%
“Business loan” Corporate restructuring & revitalization finance
27%
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Mitsui Trust Financial Group
2,431.8 2,415.7 2,456.5 2,580.0 2,145.0 1,858.4 1,918.9 1,991.3
500 1,000 1,500 2,000 2,500 As of 3/05 3/06 9/06 3/07 (Yen bn) Loans to individuals Of which, housing loans
Balance of loans to individuals
Housing loans origination by channel After housing loan securitization
New housing loan origination: ¥235.4bn Net increase: ¥72.4bn “Route sales (real estate agent and developer
channel)” strategy brings in successful
differentiation with competitors
(Plan)
90% 3% 7%
Broker channel Over the
Client company channels As of 9/06
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 1H.FY3/07 actual
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Mitsui Trust Financial Group 968.8 815.4 842.8 750.0 200 400 600 800 1,000 As of 3/05 3/06 9/06 3/07
15% 13% 13% 59%
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
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) Real estate asset finance by region / type (balance basis)
As of 9/06
49% 15% 16% Fund investment type Securitization type Development type REIT type 20%
After securitization
Securitized ¥30bn in 1H.FY3/07 (Securitized ¥140.7bn in FY3/06)
【By type】 【By region】
(Yen bn)
Portfolio by LTV / DSCR (As of 9/06) LTV * below 70%: 93.9 93.9%
% DSCR* over 2.0x: 81.2
81.2%
%
*Excluding REIT type and development type
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)
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Mitsui Trust Financial Group
*1 グロスベース（調達コスト考慮前）
2.7 4.0 1.6 1.4 1.5 2.3 1.3
5.1 0.3
0.8 1.3 0.2 0.9 0.0 2.5 5.0 7.5 10.0 12.5 1H.FY3/05 1H.FY3/06 1H.FY3/07
(Yen bn) Others Hedge fund investment related Securitized product investment related Equity investment related Buyout investment related
3.2 8.4 11.8
(Yen bn) Actual Actual Plan Plan FY3/06 1H. 2H. FY3/07 a Avg. balance
730.0 540.0 720.0 630.0
b Return*1
35.0 11.8 16.2 28.0
b/a Rate of return
4.7% 4.4% 4.5% 4.4% 0.0 12.5 25.0 37.5 50.0 FY3/04 FY3/05 FY3/06
Growth capital investments (equity) Venture investments (equity) Buyout investments (mezzanine) * Based on amount invested by Chuo Mitsui Trust
3.8 8.4 47.3
(Yen bn)
Withdrew from holding investments in hedge fund as of FY3/06 Focusing on private equity investments
Return on alternative investment by type Yearly investment track record through Chuo Mitsui Capital* Alternative investments: average balance and rate of return
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Mitsui Trust Financial Group
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Mitsui Trust Financial Group
“Business Loans”
Expand operations nationwide
Enhance alliance with “NIS Group”(Nissin) in “Chuo Mitsui Finance Service”
“ “Business Loans Business Loans” ”
Expand operations nationwide
Enhance alliance with “NIS Group”(Nissin) in “Chuo Mitsui Finance Service”
Reverse Mortgage
Engaged in the business ahead of peers in anticipation of the aging of the society －Expand sales by figuring out clients’ needs
Reverse Mortgage Reverse Mortgage
Engaged in the business ahead of peers in anticipation of the aging of the society －Expand sales by figuring out clients’ needs
Corporate Restructuring & Revitalization Finance
Respond to funding needs brought about by corporate restructuring and revitalization, and enhance M&A and alliance related advisory business
Corporate Restructuring & Corporate Restructuring & Revitalization Finance Revitalization Finance
Respond to funding needs brought about by corporate restructuring and revitalization, and enhance M&A and alliance related advisory business
Private Banking
Opened “Private Trust Salon” to provide wealth management products and services to high-networth individuals
Private Banking Private Banking
Opened “Private Trust Salon” to provide wealth management products and services to high-networth individuals
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Mitsui Trust Financial Group
Increase proactive investment of management resources in Business Loans Developing a nationwide network of business loans to service SME market
Business loan related loan balance
Branch: Further increase from 22 to 24
73.0 26.8 6.6 2.2 14.9 5.8 3.2 22.0
15 30 45 60 75 As of 9/05 3/06 9/06 3/07
Chuo Mitsui Chuo Mitsui Finance Service
(Plan) (Yen bn)
Employees: Further increase from 250 to 260 Network as of FY3/06: 8 branches / 90 employees
Expanding network to meet growing market demand:
Increase call center personnel: From 50 to 130 employees Established quick assessment function through scoring
system
Introducing new products to meet clients’ diversified
needs, such as floating rate loan （Target companies: Annual sales of ¥50mil and above） Chuo Mitsui Trust & Banking Chuo Mitsui Finance Service
Enhancement of real estate related finance through
alliance with NIS Group (Nissin)
Tie-up with Central Federation of Societies of
Commerce and Industry （Target companies: Annual sales of less than ¥50mil ）
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Mitsui Trust Financial Group
20 40 60 80 100
3/05 9/05 3/06 9/06 3/07
(Yen bn)
＊ Buy out finance ＊Arrangement of M&A (Sponsor search) ＊Arrangement of financing scheme ＊Advisory business （Plan)
Established specialized division to meet the diversified needs of corporate clients by offering corporate restructuring and revitalization, M&A, buyout related finance and services
Corporate restructuring financing Corporate revitalization financing
＊Exit finance ＊Arrangement of revitalization scheme (Sponsor search) ＊Arrangement of divestitures ＊Providing financing to succeeding (existing) company
Positioned as leading provider of financing
products to improve corporate value, such as corporation going private(management buyout)
Proactively engage in Exit finance and focus on
corporate revitalization related advisory business
Specialized Finance Dept: Balance of Corporate Restructuring & Revitalization Finance
As of
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Mitsui Trust Financial Group
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Mitsui Trust Financial Group
20.0 191.1 540.5 248.2 180.3 121.5 58.3 168.0 65.6 43.9 164.4 162.6 161.5 166.8 189.3 181.2 183.0 180.0 324% 154% 110% 103% 64% 32% 23% 36% 11% 200 400 600
FY3/99 FY3/00 FY3/01 FY3/02 FY3/03 FY3/04 FY3/05 FY3/06 FY3/07
0% 100% 200% 300% 400%
Credit costs(1) Pre-provision profit (2) (1) / (2) （Yen bn）
（Outlook）
Amount of Off-balance
a b d e (Yen bn) CMTB Actual c:b-a Outlook f:e-d Off-balance 1H.FY3/06 1H.FY3/07 Chg. FY3/06 FY3/07 Chg. Amount
59.9 42.9 (17.0) 233.2 60.0 (173.2)
Balance of NPLs decreased by ¥9.3bn YoY as a result of aggressive disposal until 3/06
Credit Costs & Pre-provision Profit (CMTB+MATB) Breakdown of Credit Costs
a b d e (Yen bn) CMTB Actual c:b-a Outlook f:e-d 1H.FY3/06 1H.FY3/07 Chg. FY3/06 FY3/07 Chg. New NPL costs
25.3 10.4 (14.9) 49.3 16.8 (32.5)
Off-balance costs
5.5 (3.4) (8.9) 2.6 (3.4) (6.0) (7.9) 6.6 14.5 13.6 6.6 (7.0)
Total
22.9 13.6 (9.3) 65.6 20.0 (45.6)
Provision(reversal) of general reserve
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Mitsui Trust Financial Group
291.7 283.1 165.2 72.6 89.1 94.9 71.8 184.9 410.6 86.9
200 400 600 800 As of 3/03 3/04 3/05 3/06 9/06 0% 2% 4% 6% 8%
Claims under Close Observation Claims under high risk & (Virtual) Bankruptcy NPL Ratio
（Yen bn)
NPL Balance & NPL Ratio (Banking a/c + Trust a/c)
NPL Ratio: Maintain under 2% level 702.3 468.0 260.1 160.9 159.6
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Mitsui Trust Financial Group
785.7 535.4 469.5 464.2 490.1 60% 62% 73% 227% 95%
250 500 750 3/03 3/04 3/05 3/06 9/06 0% 60% 120% 180% 240%
Equity Portfolio*1 Equity Portfolio *1 / Tier1
*1 Acquisition cost basis, except for 3/03 figure (book value basis, due to net unrealized losses)
(Yen bn) Equity Portfolio & Tier1 （MTH, Consolidated)
Deferred Tax Assets (DTAs) & Tier1 （MTH, Consolidated)
559.1 635.6 747.9 807.4 223.2 276.7 344.6 134.6 133.5 344.9 35.1% 18.0% 99.9% 49.4% 16.5% 200 400 600 800 3/03 3/04 3/05 3/06 9/06 0% 25% 50% 75% 100%
DTAs Tier1 (2) (1)/(2) (Yen bn) As of
As of
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Mitsui Trust Financial Group
7.50 10.14 12.50 12.35 10.34 8.81 3.75 6.00 6.82 8.50
4 8 12 16 As of 3/03 3/04 3/05 3/06 9/06
Capital Adequacy Ratio & Tier1 Capital Ratio
(MTH, Consolidated) (%)
The Group’s Retained Earnings *
28.2 99.1 165.4 350.0 254.0
100 200 300 400 As of 3/03 3/04 3/05 3/06 3/07
（Outlook）
(Yen bn)
* Total retained earnings of MTH+CMTB+MATB subtracted by amount required for accumulated earned reserve and dividends paid to shareholders
Amount (Yen bn) Type Year/Month
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 Tier1 Capital Ratio
Capital Adequacy Ratio (MTH, Consolidated)
%, Yen bn a b c:b-a MTH, Consolidated 3/06 9/06 Change Tier1
747.9 807.4 59.4
Tier2
341.7 341.6 (0.1)
Risk-weighted assets
8,795.6 9,164.2 368.7
Capital Adequacy Ratio
12.35% 12.50% 0.15%
Tier1 Ratio
8.50% 8.81% 0.31% Preferred Shares
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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