Analyst Meeting Analyst Meeting Presentation Material Presentation - PowerPoint PPT Presentation

Analyst Meeting Analyst Meeting Presentation Material Presentation Material November 26, 2010 Chuo Mitsui Trust Group

Agenda Ⅳ .Condition of Assets Ⅰ .Status of Profit Loan Portofolio P17 Financial Summary P3 NPL/Credit Cost P18 Factors for Increase/Decrease in Net Profit P4 Securities P19 Factors for Increase/Decrease in Gross P5 Operating profit Ⅴ .Status of Capital Recomposition of Revenue Structure P6 Capital/Public Funds P21 Expenses P7 Effects of New Basel Regulations P22 Ⅱ .Business Strategy （ References ） Pension/Stock Transfer Agency P24 Management Direction for 2H FY2010 P9 Real Estate Asset Finance P25 Outlook for FY2010 P10 Alternative Investment P26 Gross Operating Profit by Business Unit P11 Loan Portfolio and Trend of Yields P27 Effects of New Basel Regulations (Detail) P28 Ⅲ .Priority Businesses Investment Trust & Insurance P13 related Business Real Estate Business P14 Loans to Individuals P15 1

Ⅰ . Status of Profit ・ Financial Summary ・ Factors for Increase/Decrease in Net Profit ・ Factors for Increase/Decrease in Gross Operating Profit ・ Recomposition of Revenue Structure ・ Expenses 2

Financial Summary 1H.FY2010 Highlights (Billions of yen) a b c:b-a Actual CMTB+CMAB, non-consolidated 1H.FY2009 1H.FY2010 Change % Gross operating profit *1 116.2 115.6 (0.6) (1)% （ minus ） 58.9 56.3 (2.5) (4)% Operating expenses [Net periodic retirement [2.1] [(1.2)] [(3.4)] （ minus ） benefit costs] Pre-provision profit *2 57.3 59.3 1.9 3% (21.1) (11.1) 10.0 Net other profit (loss) and others [3.5] [1.5] [(2.0)] [Net stock related profit] [11.0] [0.8] [(10.1)] [Banking account credit costs, etc. *3 ] (minus) 36.1 48.1 12.0 33% Ordinary profit 1.4 5.5 4.1 283% Extraordinary profit [-] [6.9] [6.9] [Reversal of allowance for loan losses] （ minus ） 12.7 17.3 4.5 36% Current and Deferred income taxes 24.8 36.4 11.6 47% Net income （ minus ） 11.0 (6.1) (17.1) Credit Costs CMTH, consolidated 1H.FY2009 1H.FY2010 Change 34.3 50.1 15.7 46% Ordinary profit 19.0 32.0 12.9 68% Net income - 4.00yen 4.00yen Dividends per share (common stocks) *1 Before trust a/c credit costs *2 Effective net operating profit before trust a/c credit costs & provision (reversal) of general reserve * 3 Provision for general allowance for credit costs, Trust a/c credit costs and Banking a/c credit costs 3

Factors for Increase/Decrease in Net Profit Net Profit of 1H.FY2010 increased significantly by 47% YoY contributed by a significant recovery in credit costs. Gross operating profit was maintained at the same level. Factors for Increase/Decrease in Net Profit （ CMTB + CMAB non-consolidated ） (Billions of yen) Increase factor (2.0) Decrease factor (5.4) 17.1 +11.6 2.5 (0.6) 36.4 Gross operating Operating Credit costs Net stock Others profit expenses related (Net periodic profit 24.8 retirement benefit costs 3.4) 1H.FY2009 1H.FY2010 4

Factors for Increase/Decrease in Gross Operating Profit Gross Operating profit was maintained at the same level YoY. Profit from Investment trust / insurance and real estate, identified as our priority businesses, increased YoY, and profit from market related business, including bond investment, also recorded steady performance. On the other hand, profit from banking business, corporate loans and loans to individuals decreased mainly due to low market interest rate environment. Factors for Increase/Decrease in Gross Operating profit （ CMTB + CMAB non-consolidated ） (Billions of yen) Conventional Banking Businesses Strategic Businesses Increase factor Priority Segments Decrease factor 2.2 (3.2) 1.9 (2.0) (0.6) 5.3 (4.8) 116.2 115.6 Corporate Bond Investment trust Real estate Loans to Others loans, etc. investments, & Individuals etc. Insurance related business 1H.FY2009 1H.FY2010 Corporate loans, Bond Investment trust Real estate Loans to investments & insurance individuals Interest income Profit from Overall sales Profit increased Tightening decreased due to market related volume by closing one of pressure on the further decline in business increased driven the large broking spread margin market interest increased as mainly by transactions as % of short- rate there was investment trust term floating rate steady bond loan increased related profit 5

Recomposition of Revenue Structure Recomposition of Revenue Structure Breakdown of gross operating profit by business unit (CMTB+CMAB, non-consolidated) Conventional Banking Businesses Banking related Businesses 1 7 % ○ Corporate loans, etc. 2 0 % 2 3 % ○ Bond investments, etc. Strategic Businesses ● Loans to individuals 2 4 % 1 9 % Businesses Banking related ○ Real estate asset finance ○ Alternative investments 4 0 % ○ Other banking related businesses 2 1 % 1 8 % ● Investment trust & insurance 5 % 5 % Businesses Asset Management ● Real estate 2 % 1 % 2 % 1 % 1 1 % 61% ○ Pension 59% 1 3 % 1 2 % 2 % 2 % ○ Stock transfer agency 3 % 37% 4 % 6 % ○ Other asset management 9 % businesses 1 0 % 9 % Sum of loans to 5 % individuals, 5 % 5 % 5 % investment 1 % 0 % trust & F Y 2 0 0 2 F Y 2 0 0 9 1 H . F Y 2 0 1 0 insurance and １６％ ３７％ ３７％ real estate 6

Expenses Expenses Operating Expenses OHR Expenses and OHR stayed at the similar level YoY due to stringent cost operation. Trend of Operating Expenses Trend of OHR* （ CMTB+CMAB, non-consolidated ） （ CMTB+CMAB, non-consolidated ） Tax Non-Personnel Personnel [Excluding allowance for retirement benefit] (Billions of yen) 48.8% 49.8% 48.8% 50.0% 59.2 57.6 56.7 60.0 2.4 2.7 2.7 40.0% 30.0 28.6 40.0 30.0% 28.2 20.0% 20.0 10.0% 26.7 26.3 25.8 0.0% 0.0 1H.FY2008 1H.FY2009 1H.FY2010 1H.FY2008 1H.FY2009 1H.FY2010 *Operating expenses (excluding retirement benefit cost)/gross operating profit 7

Ⅱ .Business Strategy ・ Management Direction for 2H FY2010 ・ Outlook for FY2010 ・ Gross Operating Profit by Business Unit 8

Management Direction for 2H FY2010 Management Direction Further strengthen profit generation capability and enhance expertise, in order to deliver smooth start of the new trust banking group which is scheduled to be established on April 2011 １ .Enhancement of Earning and Sales Capability ➢ Continue to focus on strengthening earnings capability in investment trust / insurance, real estate and loans to individuals – the businesses that we identify as priority businesses and also identify as “strategic areas” in new trust banking group ➢ Developing activities in other operational areas (asset management / administration and wholesale businesses) where we could anticipate integration synergies 2. Maintain and Promoting the Soundness of Asset Quality ➢ Maintain the soundness of loan portfolio ➢ Reduction of equity holdings at early stage Management integration with Sumitomo Trust and Banking Co., Ltd. is progressing well and smoothly. 9

Outlook for FY2010 Outlook for FY2010 FY2010 full-year outlook remains unchanged although 1H FY2010 full-year outlook remains unchanged although 1H profit / full-year outlook was at over 60%. profit / full-year outlook was at over 60%. (Billions of yen) a b c:b-a d e:d/b 【 Uncertain elements 】 Outlook Actual 〔 Interest rate 〕 CMTB+CMAB, non-consolidated FY2009 FY2010 Change 1H.FY2010 Progress Gross operating profit *1 226.9 230.0 3.0 115.6 50% Low interest rate environment (could possible be lower) （ minus ） 117.9 115.0 (2.9) 56.3 49% Operating expenses 〔 Stock market 〕 [Net periodic retirement Sluggish stock market [4.3] [(2.5)] [(6.8)] [(1.2)] （ minus ） benefit costs] 〔 Real estate market 〕 Pre-provision profit *2 108.9 115.0 6.0 59.3 52% Delay in market recovery (23.9) (25.0) (1.0) (11.1) Net other profit (loss) and others 85.0 90.0 4.9 48.1 53% Ordinary profit Although credit costs for the current fiscal year may fall below the outlook, full year outlook has not changed 2.6 - (2.6) 5.5 Extraordinary profit concerning the above uncertainties. 30.0 30.0 (0.0) 17.3 （ minus ） Current and Deferred income taxes 57.6 60.0 2.3 36.4 61% Net income （ minus ） 7.5 10.0 2.4 (6.1) Credit Costs CMTH, consolidated FY2009 FY2010 Change 1H.FY2010 Review the outlook accordingly the effects of the 83.4 90.0 6.5 50.1 56% Ordinary profit Review the outlook accordingly the effects of the macro economy to business weighing operations. 46.8 50.0 3.1 32.0 64% Net income macro economy to business weighing operations. 8.00yen 8.00yen 4.00yen Dividends per share (common stocks) *1 Before trust a/c credit costs *2 Effective net operating profit before trust a/c credit costs & provision (reversal) of general reserve 10