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Analyst Meeting

Presentation Material

Analyst Meeting

Presentation Material

Chuo Mitsui Trust Group

May 28, 2008

1

Agenda Ⅰ. Financial Summary and Management Direction Ⅱ. Management Strategies Ⅲ. Strategic Business Operations Ⅳ. Strengthening the Balance Sheet Ⅴ. Topics

2

Ⅰ. Financial Summary and Management Direction

･ Financial Summary ･ Management Direction

3

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

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

Actual Outlook

CMTB+CMAB, non-consolidated FY3/07 FY3/08 Change % FY3/09 Change % Gross operating profit *1

275.3 265.2 (10.0) (4%) 277.0 11.7 4%

Operating expenses

98.2 110.8 12.5 13% 117.0 6.1 6%

[Net periodic benefit cost]

[(17.1)] [(7.7)] [9.3]

Pre-provision profit *2

177.0 154.4 (22.6) (13%) 160.0 5.5 4%

Net other profit (loss) and others

(22.9) (27.5) (4.6) (25.0) 2.5

Recurring profit

154.1 126.8 (27.3) (18)% 135.0 8.1 6%

Extraordinary profit

18.1 8.1 (9.9)

• (8.1)

[15.8] [-] [(15.8)] [-] [-]

Deferred income taxes

43.3 42.8 (0.5) 41.5 (1.3)

Net income

118.4 81.9 (36.4) (31)% 85.0 3.0 4%

Credit costs

29.7 9.5 (20.2) 10.0 0.4

CMTH, consolidated FY3/07 FY3/08 Change % FY3/09 Change % Recurring profit

159.9 125.3 (34.5) (22)% 140.0 14.6 12%

Net income

112.7 71.8 (40.9) (36)% 80.0 8.1 11%

Dividend per share

¥5 ¥7 ¥7

[Gain on partial withdrawal of employee retirement benefit trust]

FY3/08 Highlights & FY3/09 Outlook

4

Management Direction

Chuo Mitsui Trust Group

Management Actions

Management Direction

Continuous focus on the maintenance and improvement of a financial base Increase of gross

• perating

profit Recomposition

• f revenue

structure

Strengthening the Balance Sheet Enhancement

• f

Profitability

Concentration on high margin & high growth business segments within strategic businesses

5

Ⅱ. Management Strategies

･ Recomposition of Revenue Structure ･ Revenue Trends ･ Status of Gross Operating Profit ･ Revenues by Business Unit ･ Expense Situation

6

5% 3% 3% 5% 6% 5% 9% 9% 10% 10% 10% 11% 14% 12% 13% 14% 16% 17% 18% 2% 9% 4% 4% 4% 4% 11% 12% 13% 15% 16% 40% 14% 9% 13% 12% 23% 18% 15% 16% 17% 1% 2% 4% 5% 3%2% 2% 2% 9% 4% 3% 2%

FY3/03 FY3/06 FY3/07 FY3/08 FY3/09

Recomposition of Revenue Structure

Asset management business Banking business

Strategic businesses

Banking business, etc.

Conventional businesses

Breakdown of gross operating profit by business segment (CMTB+CMAB, non-consolidated)

Recomposition of Revenue Structure

• Corporate loans
• Bond investments, etc.
• 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

Sum of loans to individuals, investment trust & annuity insurance, and real estate

１６％ ４４％

More focus on high profit and high growth areas within strategic businesses

76% 71% 37% 68% 71% (Outlook)

３７％ ４３％ ４７％

From conventional businesses to strategic businesses

7

267.4 275.1 286.7 274.0 284.0 200 220 240 260 280 300 FY3/05 FY3/06 FY3/07 FY3/08 FY3/09 298.1 283.3 275.3 265.2 277.0 200 220 240 260 280 300 FY3/05 FY3/06 FY3/07 FY3/08 FY3/09

Revenue Trends

Revenues excluding effects of securitization showed a steady growth trend until FY3/07, but in FY3/08 turned to a decrease YoY ⇒We aim to increase revenues in FY3/09

* Excludes securitization profits which are posted upfront when securitization takes place, and amortization costs which are posted in the following years

(Yen bn) (Yen bn)

～ ～ ～ ～

(Outlook) (Outlook)

Revenue Trend (CMTB+CMAB, non-consolidated) Revenue Trend excluding Effects of Securitization* (CMTB+CMAB, non-consolidated)

8

FY3/08 Actual Items Housing loan Investment trust & Annuity insurance

Status of Gross Operating Profit

Real estate FY3/09 Plan

Leverage on the trend towards a shift from savings to investment

Revenue: ¥49.0bn （¥3.7bn or 8% increase YoY)

Further enhancement of route sales

New origination ¥690.0bn （¥6.9bn or 1% increase YoY) Main Strategic Businesses Improvement in yield margin through recomposition of loan portfolio and rise in lending rate* YoY improvement: +9bps Loans Focus towards higher profit loans such as overseas lending, in addition to housing loans Continue to focus as main strategic business segments

Capture robust demand of investors in the trend toward real estate becoming financial products

Revenue ¥36.0bn （¥4.2bn or 14% increase YoY) New origination ¥683.1bn（record high) （¥203.1bn or 42% increase YoY) Route sales strategy brought in ¥103.1bn exceeding initial plan Revenue: ¥31.7bn ( (¥7.0bn) or 18% decrease YoY ) Affected by market slowdown in March Revenue: ¥45.2bn （record high) （¥2.2bn or 5% increase YoY) Stock-based fee increased despite decrease in sales amount Lending Businesses

* Banking a/c(domestic funds)+loan trust+JOMTs,

After excluding effects of securitization profit and amortization

Grasp profit

• pportunities

9

Revenues by Business Unit

Revenues by Business Unit

a b c:b-a d e:d-b （Yen bn） Actual Outlook CMTB+CMAB, non-consolidated FY3/07 FY3/08 Change % FY3/09 Change % Asset management business

130.1 121.9 (8.1) (6)% 127.0 5.0 4% 43.0 45.2 2.2 5% 49.0 3.7 8%

Real estate

38.7 31.7 (7.0) (18)% 36.0 4.2 14%

Pension

26.0 26.6 0.6 2% 27.5 0.8 3%

Stock transfer agency

14.5 13.6 (0.8) (6)% 12.0 (1.6) (12)%

Banking related business

145.2 143.2 (1.9) (1)% 150.0 6.7 5%

Conventional banking businesses

68.2 77.5 9.3 14% 80.0 2.4 3%

[Of which Corporate loans]

[42.4] [43.3] [0.8] [2%] [46.5] [3.1] [7%]

[Of which Bond investments, etc.]

[25.7] [34.2] [8.4] [33%] [33.5] [(0.7)] [(2%)]

Loans to individuals

37.1 39.5 2.4 7% 45.5 5.9 15%

Real estate asset finance

9.7 9.9 0.1 2% 10.0 0.1 1%

Alternative investments

25.3 9.5 (15.7) (62)% 9.5 0.0 0% 4.8 6.6 1.8 38% 5.0 (1.6) (25)%

Gross operating profit

275.3 265.2 (10.0) (4)% 277.0 11.7 4%

Investment trust & Annuity insurance Other banking related businesses

10

45.4 47.4 51.8 61.1 105.9 110.6 113.0 114.0 53.5 60.5 60.5 63.2

40 80 120

FY3/06 FY3/07 FY3/08 FY3/09 (Outlook)

Non-personnel Personnel excluding net perioding benefit cost

(Yen bn)

37.4% 40.2% 42.6% 41.1% 0% 10% 20% 30% 40% 50% FY3/06 FY3/07 FY3/08 FY3/09 (%)

Expense Situation

Allocation to high margin and high growth business segments

Operating Expenses

Personnel

Operating Expenses (CMTB+CMAB, non-consolidated)

FY3/09 Plan

Trend of Strategic Expenses *1

（CMTB+CMAB, non-consolidated ）

Trend of Strategic Expense Ratio *2 （CMTB+CMAB, non-consolidated ）

*1 Personnel cost excluding net periodic benefit cost + non-personnel cost

FY3/08 Actual

Strategic expenses*1 increased by 2.2% YoY due to strategic investments in focus areas

FY3/09 Outlook Lower strategic expense ratio than FY3/08 Though overhead ratio including net periodic benefit cost and taxes will rise YoY from FY3/08, we will maintain one of the highest level of efficiency among peers FY3/09 Outlook: 42.2%

(Outlook) *2 (Personnel cost excluding net periodic benefit cost + non-personnel cost) / gross operating profit

11

Ⅲ. Strategic Business Operations

• 1. Asset Management (Fee) Business
• Investment Trust & Annuity Insurance related Business
• Real Estate Business
• Pension Business ＆ Stock Transfer Agency Business
• Fees from Asset Management Business
• 2. Banking Related Business
• Loans to Individuals
• Real Estate Asset Finance
• Loan Portfolio
• Yields and Margins
• Alternative Investments
• 3. Strategic Subsidiaries
• Enhancing Asset Management Subsidiary ① -Chuo Mitsui Asset Management-
• Enhancing Asset Management Subsidiary ② -Chuo Mitsui Capital-
• Future Development

12

6.1 9.0 10.6 21.0 20.3 22.1 14.2 18.0 40.5 43.0 45.2 49.0 11.5 19.5 12.2 13.0

10 20 30 40 50 60 FY3/06 FY3/07 FY3/08 FY3/09 （Yen bn） 388.6 708.6 598.2 290.0 520.0 225.1 395.0 215.4 810.0 823.4 783.7 924.0 500 1,000 FY3/06 FY3/07 FY3/08 FY3/09

（Yen bn）

Investment trust sales amount Annuity insurance sales amount

919.8 1,680.0 1,249.9 1,246.7 1,540.0 868.6 1,058.3 1,250.4 500 1,000 1,500 3/06 3/07 3/08 3/09

Investment trust Annuity insurance （Yen bn)

Investment Trust & Annuity Insurance related Business

Strong fee revenues in the 1st half of FY3/08 contributed to a record high profit for the full fiscal year Ensure to capture the trend in the flow of individual assets from savings to investments in FY3/09

Investment Trust & Annuity Insurance related Revenues Investment Trust & Annuity Insurance Balance

Breakdown of sales fees* to flow-base and stock-base

＊ Annuity insurance sales fee and Investment trust sales fee

Contribution of increased stock-based fees due to balance increase offsetting the decrease of flow-based fees due to decreased sales amount

Annuity insurance sales fee Trustee fee & Investment advisory fee for Investment trust Investment trust sales fee

(Plan)

As of (Yen bn) FY3/07 FY3/08 10.0 24.4 34.4 8.1 25.8 34.0 Flow-base Stock-base

Investment Trust & Annuity Insurance Sales Amount

(Plan)

Breakdown of Investment Trust & Annuity Insurance related Revenue

(Outlook)

a b c:b-a d (Yen bn) CMTB+CMAB, non-consolidated Actual Outlook e:d-b Sales Fee FY3/07 FY3/08 Chg. FY3/09 Chg. Investment trust sales fee

21.0 20.3 (0.6) 19.5 (0.8)

Annuity insurance sales fee

13.0 14.2 1.2 18.0 3.7

Total

34.0 34.6 0.6 37.5 2.8

Trustee Fee & Investment Advisory Fee for Investment Trust Trustee fee

5.3 6.3 1.0 7.0 0.6

Investment advisory fee

3.6 4.2 0.5 4.5 0.2

Total

9.0 10.6 1.6 11.5 0.8

Grand total

43.0 45.2 2.2 49.0 3.7

13

2,999.7 4,312.7 5,141.1 5,350.0 1,000 2,000 3,000 4,000 5,000 3/06 3/07 3/08 3/09

(Yen bn）

Real Estate Business

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

2H.FY3/07： 67% 1H.FY3/08： 64% 2H.FY3/08： 53%

(Plan)

～ ～

As of a b c:b-a d (Yen bn) CMTB, Actual Outlook e:d-b non-consolidated FY3/07 FY3/08 Chg. FY3/09 Chg. Real estate brokerage fee

31.0 24.4 (6.6) 29.0 4.5

Real estate trust fee

7.6 7.2 (0.4) 7.0 (0.2)

Total

38.7 31.7 (7.0) 36.0 4.2 5.8 7.6 7.2 7.0 29.0

30.3 38.7 31.7 36.0

24.4 31.0 24.5 10 20 30 40 FY3/06 FY3/07 FY3/08 FY3/09 (Outlook)

( Y e n b n )

Real estate brokerage fee Real estate trust fee

Investor related deals decreased, as funding

environment for the investors worsened due to market turmoil in March 2008. As a result, FY3/08 turned to a decrease of ¥7.0bn YoY

As demand from investors for real estate still remaining

strong with real estate becoming financial products, we aim for a YoY growth in FY3/09

14

7,950.8 8,625.9 6,570.7 7,121.5 6,361.4 7,344.4 6,720.6 7,657.1 3,000 4,500 6,000 7,500 9,000 3/05 3/06 3/07 3/08

（Yen bn）

Book value basis Market value basis

Industry Share ＊3

Pension Business Stock Transfer Agency Business

Balance of Entrusted Pension Assets*2 under Management

～ ～

Both balance of entrusted assets and revenue showed steady growth Ensure steady growth in earnings

*1 Managerial accounting changed from FY3/08. Figures as of FY3/07 is also posted by the new standard for comparison purposes.

（Net revenue on the former standard for FY3/07: ¥27.7bn）

# of listed corporate clients

(As of 3/08)

*2 Includes discretionary assets

Pension Business related Revenue *1

# of shareholders under administration

(As of 3/08)

Our Group 25.4% Our Group 24.3%

As of

Revenue is on a downward trend in anticipation of dematerialization of stock certificate starting Jan. 2009 Shift to low cost structure by utilizing a JV set up with Mizuho Trust, which is responsible for back office

• perations

*3 CMTB+Tokyo Securities Transfer Agent a b c:b-a d (Yen bn) CMTB, Actual Outlook e:d-b non-consolidated FY3/07 FY3/08 Chg. FY3/09 Chg. Fees received

25.5 24.5 (1.0) 22.5 (2.0)

Fees paid (minus)

11.0 10.9 (0.1) 10.5 (0.4)

Total

14.5 13.6 (0.8) 12.0 (1.6) Stock Transfer Agency Business related Revenue

a b c:b-a d (Yen bn) CMAB, Actual Outlook e:d-b non-consolidated FY3/07 FY3/08 Chg. FY3/09 Chg. Fees received

30.6 31.0 0.3 31.5 0.4

Fees paid (minus)

4.6 4.3 (0.2) 4.0 (0.3)

Total

26.0 26.6 0.6 27.5 0.8

15

38.1% 25.8% 23.8% 22.6% 51.7% 61.9% 74.2% 77.4% 48.3% 76.2%

25 50 75 100 CMTH A B C D （%）

Source: Disclosed company data *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) *1

Net Fee Income from Asset Management (Fee) Businesses

Net fee income Others

*2 *3

Net Fee Income as % of Gross Operating Profit for Major Banks FY3/08 (Combined non-consolidated basis)

16

496.8 439.0 398.2 360.0 2,850.0 1,918.9 2,140.9 2,531.9 500 1,000 1,500 2,000 2,500 3,000 3,500 3/06 3/07 3/08 3/09

（Yen bn）

Housing loans Sole proprietorships

4% 2% 94%

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

Continuous focus on high margin housing loans ⇒ Secure steady growth in loan balance Housing loan results for FY3/08 “Route sales (major home builders, real estate

agents and developers channel)” strategy brings

in successful differentiation with competitors

FY3/08, Numbers of new loans originated Post securitization

New origination: ¥683.1bn (+¥103.1bn against plan） Net increase: ¥391.0bn (+¥121.0bn against plan)

3,210.0 2,415.7 2,579.9 2,930.1

(Plan)

0% 50% 100% 150% 200% 250% 300%

4/06 7/06 10/06 1/07 4/07 7/07 10/07 1/08

Chuo Mitsui's number of new housing loan origination Single-family home housing starts Condominium housing starts

Trend of numbers of new housing starts and Chuo Mitsui's new origination of housing loans, by setting April 2006 as 100

Trend of Housing Loan Market

Comparison of New Housing Starts with Chuo Mitsui‘s New Housing Loan Origination

17

815.4 866.8 875.8 870.0 200 400 600 800 1,000 3/06 3/07 3/08 3/09

Real Estate Asset Finance

Post securitization

Securitized ¥6.2bn in FY3/08 (Securitized ¥42.5bn in FY3/07)

(Yen bn)

Portfolio* by LTV and DSCR (As of 3/08) LTV* below 70%: 96.1%

% DSCR* over 2.0x: 79.8% %

* Excluding REIT type and development type

Balance of Real Estate Asset Finance

Market: Due to decreased fund supply in the market, originations that met our risk-return criteria increased Focus on originations that meet our risk return-criteria

As of

(Plan)

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

18

25% 28% 30% 34% 37% 71% 62% 60% 56% 53% 4% 10% 10% 10% 10% 0% 20% 40% 60% 80% 100% FY3/03 FY3/06 FY3/07 FY3/08 FY3/09

Loans to individuals Real estate asset finance Corporate loans

Appropriate risk control adopted in constructing loan portfolio, including stringent selection of deals Weight of comparatively high margin loans to individuals increased (FY3/08 Housing loan loss rate*1: 0.06%)

Loan Portfolio

Recomposition of Loan Portfolio (average balance *2)

*1 Pay-out guarantee rate by guarantee companies

More than 30% of total loans are profitable loans to individuals

*2 Banking A/C(domestic funds)+loan trusts+JOMTs+yen loan to non-resident, Post securitization

38％ 29％ 40％ 44％ 47％

Recomposition

• f loan portfolio

(excluding bond-type)

(Plan)

Proactive increase of profitable overseas lending and real estate asset finance with good risk- return profile

*3 Corporate loans+corporate restructuring & revitalization related finance,etc.

*3

19 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% 1.6% 1.8% 2.0% 2H. FY3/06 1H. FY3/07 2H. FY3/07 1H. FY3/08 2H. FY3/08

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

Yields and Margins

Both yields and margins continued to show a recovery trend

Comparison of Yields and Margins*1

*2 *3 *4 *5 *2

*1 Banking A/C(domestic funds) + loan trusts + JOMTs + yen loan to non-resident *2 Banking A/C(domestic funds) + loan trusts + JOMTs, excluding effect of securitization profit and amortization *3 Excluding bond-type *4 Corporate loans + corporate restructuring & revitalization related finance,etc. *5 Banking A/C(domestic funds)+loan trusts+JOMTs

Banking a/c (domestic funds) + loan trusts + JOMTs

a b c d:c-a

• 2H. FY3/07
• 1H. FY3/08
• 2H. FY3/08

Change Average yield

1.46% 1.49% 1.38% (0.08)%

Average yield on loans and bills discounted ①

1.38% 1.54% 1.66% 0.28%

Average yield on procured funds

0.36% 0.48% 0.57% 0.21%

Average yield on deposits and principals ②

0.29% 0.39% 0.46% 0.17%

Yield margin ①-②

1.08% 1.15% 1.20% 0.11%

Banking a/c (domestic funds) + ｌoan ｔrusts + JOMTs

a b c d:c-a

• 2H. FY3/07 1H. FY3/08 2H. FY3/08

Change Average yield

1.53% 1.57% 1.44% (0.09)%

Average yield on loans and bills discounted ①'

1.50% 1.67% 1.77% 0.26%

Average yield on procured funds

0.36% 0.48% 0.57% 0.21%

Average yield on deposits and principals ②'

0.29% 0.39% 0.46% 0.17%

Yield margin ①'-②'

1.20% 1.28% 1.30% 0.09%

Comparison of Yields and Margins

(CMTB, non-consolidated, 3 a/c total) （before excluding effect of securitization profit and amortization ）

Comparison of Yields and Margins

(CMTB, non-consolidated, 3 a/c total) （after excluding effect of securitization profit and amortization ）

20

(Yen bn)

Actual FY3/07 Actual FY3/08 Outlook FY3/09 Buyout investment related

9.0 4.1 7.6

Securitized product investment related

2.8 (1.9) 3.4

Dividends, etc.

2.8 3.0 3.4

Gains and losses on derivatives

• (5.0)
• Equity investment related

12.3 7.9 0.5

Hedge fund investment related

• Others

6.6 4.8 3.5

Total

30.7 14.9 15.0

Alternative Investments

*1 Gross operating profit, gross base （before funding costs）

FY3/08: Lower return on investment due to weak market conditions FY3/09: Aim to increase revenues from investments in funds managed by Chuo Mitsui Capital, under dicipline control of risk

Return on Alternative Investment by Type*1

*2

*2 Most of profits are Chuo Mitsui Capital related

Alternative Investments: Actual and Plan

(Yen bn) Actual Actual Plan FY3/07 FY3/08 FY3/09

a

Avg. balance

560.0 560.0 640.0

b

Return*1

30.7 14.9 15.0

b/a

Rate of return

5.4% 2.6% 2.3%

*3

*3 Loss due to bifurcation of credit derivative portion of CDO

21

1,574.2 2,234.9 779.2 2,179.4 1,311.0 1,864.9 2,209.5 860.3 500 1,000 1,500 2,000 2,500 As of 3/05 3/06 3/07 3/08 Principal basis Market value basis

Increase presence in the growing investment trust market backed by the trend from savings to investment, by utilizing our highly regarded asset management capability

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)

Enhancing Asset Management Subsidiary ① -Chuo Mitsui Asset Management-

Assets under Management

(Yen bn) (Yen bn)

2.9 6.1 10.3 13.1

3 6 9 12 FY3/05 FY3/06 FY3/07 FY3/08

*1 *2

22

84.6 142.9 214.5 273.9 105.1 116.3

50 100 150 200 250 300 3/06 3/07 3/08 Investment amount Commitment amount

Focus on fund establishment as a leading player in the mezzanine finance market

Assets under Management

* Total assets under management by Chuo Mitsui Capital

Total of Funds *

Private equity fund management business

• Market

There are still steady needs for capital

• restructuring. Large-size deals were weak, but

mid and small-size transactions, mainly buyout investments, were strong. Number of deals of mid and small-size deals were larger than previous year

Chuo Mitsui Capital

▶ Since foreign banks became more conservative in providing new money, expectation for finance from Chuo Mitsui Capital as main player in mezzanine finance has increased year by year ▶ Will focus on raising funds from outside investors ⇒FY3/09 New investment of ¥180.0 bn (Plan)

Enhancing Asset Management Subsidiary ② -Chuo Mitsui Capital-

(Yen bn)

As of

23

Chuo Mitsui Trust Holdings, Inc. Chuo Mitsui Trust Holdings, Inc. Chuo Mitsui Asset Management Chuo Mitsui Asset Management Chuo Mitsui Capital Chuo Mitsui Capital Chuo Mitsui Asset Trust & Banking Chuo Mitsui Asset Trust & Banking The Chuo Mitsui Trust & Banking The Chuo Mitsui Trust & Banking

The Group will pursue mid-to-long term growth as a financial group consisting of two trust banks and two asset management companies as its core Holding company Holding company Asset management Asset management Trust bank Trust bank

Future Developments

24

Ⅳ. Strengthening the Balance Sheet

• NPL Trends

25

291.7 283.1 165.2 89.1 61.5 76.0 410.6 184.9 94.9 71.8 82.8 79.5 7.0% 4.9% 2.8% 1.8% 1.7% 1.7% 250 500 750 3/03 3/04 3/05 3/06 3/07 3/08

(Yen bn） 0% 2% 4% 6% 8%

Claims under Close Observation Claims under high risk & (Virtual) Bankruptcy NPL Ratio

NPL Trends

702.3 468.0 260.1 160.9 144.3

Balance of NPL and NPL Ratio

(CMTB, non-consolidated, Bank a/c + Trust a/c)

155.6

Maintaining stringent portfolio management

As of a b c:b-a d (Yen bn) CMTB, Actual Outlook e:d-b non-consolidated FY3/07 FY3/08 Chg. FY3/09 Chg. Provision of general reserve

16.3 (6.2) (22.6)

Provision of specific reserve

0.4 3.3 2.8

Others(off-balance costs,etc.)

13.0 12.4 (0.5)

Total

29.8 9.5 (20.2) 10.0 0.5 10.0 NPL increased due to stringent assessments for sole proprietorships in FY3/08 ⇒P/L impact is limited, for the coverage ratio is as high as 98% Breakdown of Credit Costs

26

Ⅴ. Topics

• Overseas Investment / Lending
• Loans to Consumer Finance Companies
• Capital

27 (1)Market Value Available (Securities) (Excluding Foreign Government Bonds and US Agency MBS ) (Yen bn) As of 3/08 FY3/08 Acquisition cost Unrealized gain/loss Loss disposition Note Subprime Loans/Investments None （*1）

• Others

166.1 (7.6) (5.2) CDO 10.0

• (5.0) Managed synthetic CDO （only one security, AA rating）（*3）

Investment Trust（Bond Funds） 4.8 (0.3) (0.2) Investment Trust（Credit Funds） 24.9 (2.5)

• Investments mainly to bank loans towards US companies

Investment Trust（Stock Funds, etc.） 10.9 (0.9)

• Market neutral funds of US equities, etc

Foreign Bonds, etc. 115.3 (3.8)

• Overseas corporate bonds, etc（*5）

Total 166.1 (7.6) (5.2) （*6） (2)Market Value Available (Securities) (Foreign Government Bonds and US Agency MBS ) (Yen bn) As of 3/08 Acquisition cost Unrealized gain/loss Foreign Government Bonds 32.9 (0.3) US Agency MBS 758.4 (0.5) Total 791.3 (0.9) (3) Market Value Unavailable (Loans, Securities, and Acceptances and Guarantees) (Yen bn) As of 3/08 Balance Subprime Loans/Investments None （*1） Others 103.2 Corporate Loans 92.5 Securities of Non-listed Companies 6.8 3.8 Total 103.2 （*6） Acceptances and Guarantees (Corporate)

Investments mainly to public and corporate bonds, domestic and foreign

（*4） （*2） （*5） （*7） （*2） （*2）

No Exposure to ABS & CDOs backed by Subprime Loans

Status of Overseas Investments / Lending

(*1) There is no exposure to subprime loans or Alt-A loans. (*2) Posted a loss as derivative cost (net other operating profit) by bifurcating credit derivative portion. There is no change in acquisition cost due to this accounting procedure. As a result, there is no unrealized loss as of the end of March 2008. (*3) Underlying reference portfolio of this CDO (¥10.0 bn) consists of 120 companies, and includes 4 monoline insurance companies, which account for 3.6%. There is no hedge transactions implemented against this CDO. (*4) As of the end of March 2007, we held ¥30.0 bn of investment trusts which had investments in ABS backed by US home equity loan. However, the above mentioned investment trusts had been sold off by the end of December 2007, due to which we realized a loss of ¥0.2 bn. (*5) Does not include any CMBS. (*6) Other than above mentioned CDO, there is no direct or indirect investments/lending related to monoline insurance companies. In addition, there is no investments/lending guaranteed or insured by monoline insurance companies. (*7) Includes ¥2.7 bn as balance of leveraged finance (sector: 100% electricity and gas). With regard to the above mentioned leveraged finance, there is no undrawn commitment as of the end of March 2008.

Overseas Investments / Lending

28

276.5 231.9 177.7 110.9 78.0 47.8

50 100 150 200 250 300 As of 3/06 3/07 3/08 Loans to consumer finance companies and nonbank financial institutions Of which are loans to consumer finance companies

Loan Balance to Consumer Finance Companies

Still maintaining stringent selection strategy for loans to consumer finance companies & nonbanks

*1 Loan providers which apply interest rates in excess of the upper limit set by the Interest Rate Restriction Law. (consumer finance companies, consumer credit companies, credit card companies, etc.) *2 Loan providers whose consumer loan balance exceeds 50% of total loan balance, and the unsecured loan balance (excluding residential) accounts for the highest proportion. (Excludes credit card companies and consumer credit companies) (Yen bn)

*2 *1

Loans to Consumer Finance Companies

29

165.4 254.0 343.2 400.4

100 200 300 400 FY3/05 FY3/06 FY3/07 FY3/08 （Yen bn）

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

(%)

Capital Adequacy Ratio

Capital

The Group’s Retained Earnings *2

*2 Total retained earnings of CMTH+CMTB+CMAB subtracted by amount required for accumulated earned reserve Amount (Yen bn) Type Year/Month

• f Injection

Dividend Rate Current Conversion Price*3 Mandatory conversion date Conversion Price at mandatory conversion date 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 8/1/2009 Market price *4 Class III 213.25 Convertible 3/1999 1.25% 450 8/1/2009 Market price *4 \37.0bn out of Class III was sold in the market in July 2007 Total 363.25

Tier1 Capital Ratio

Capital Adequacy Ratio *1 (CMTH, consolidated)

*1 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 Capital Ratio *1

(CMTH, consolidated)

As of

(Yen bn) a b c:b-a CMTH, Consolidated 3/07 3/08 Change Tier I

764.5 878.0 113.5

Tier Ⅱ

296.0 263.7 (32.2)

Risk adjusted assets

8,584.1 8,109.0 (475.1)

Capital Adequacy Ratio

12.13% 13.84% 1.71%

Tier1 Ratio

8.90% 10.82% 1.92%

Adopted as our policy the goal of making full repayment by August 2009 through sales in the market and through repurchases Preferred Shares

30

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.