Global Corporate and Investment Banking Strategy March 2016 - PowerPoint PPT Presentation

Global Corporate and Investment Banking Strategy March 2016 Mitsubishi UFJ Financial Group, Inc. A member of MUFG, a global financial group

 This document contains forward-looking statements in regard to forecasts, targets and plans of Mitsubishi UFJ Financial Group, Inc. (“MUFG”) and its group companies (collectively, “the group”). These forward-looking statements are based on information currently available to the group and are stated here on the basis of the outlook at the time that this document was produced. In addition, in producing these statements certain assumptions (premises) have been utilized. These statements and assumptions (premises) are subjective and may prove to be incorrect and may not be realized in the future. Underlying such circumstances are a large number of risks and uncertainties. Please see other disclosure and public filings made or will be made by MUFG and the other companies comprising the group, including the latest kessantanshin, financial reports, Japanese securities reports and annual reports, for additional information regarding such risks and uncertainties. The group has no obligation or intent to update any forward-looking statements contained in this document  In addition, information on companies and other entities outside the group that is recorded in this document has been obtained from publicly available information and other sources. The accuracy and appropriateness of that information has not been verified by the group and cannot be guaranteed  The financial information used in this document was prepared in accordance with JGAAP, unless otherwise stated. Definitions of Figures Used in this Document Consolidated Mitsubishi UFJ Financial Group (consolidated) BTMU Bank of Tokyo-Mitsubishi UFJ (consolidated. excluding MUAH and Krungsri) MUSHD Mitsubishi UFJ Securities Holdings (consolidated) 2

Table of Contents  Introduction P.4  Overview of MUFG’s Global Corporate and Investment Banking (“Global CIB”) Business P.5  Key Initiatives P.14 3

Introduction  Randy Chafetz is Executive Officer of Global Corporate and Investment Banking for The Bank of Tokyo-Mitsubishi UFJ, Ltd. (“BTMU”). He is also General Manager of the Global Corporate Banking Division. He was the first non-Japanese Executive Officer in BTMU history.  In his role as Head of Global Corporate, Mr. Chafetz is responsible for BTMU’s non-Japanese corporate client business. In addition, he provides oversight and strategic leadership to the Investment Banking businesses in the Americas, EMEA and Asia.  Previously, Mr. Chafetz was the Head of Corporate and Investment Banking for the Americas, responsible for non-Japanese corporate banking in the United States and Latin America, as well as investment banking businesses across the Americas including Canada and Latin America. Prior to rejoining BTMU in 2008, he was Executive Vice President and Chief Operating Officer of Mitsubishi UFJ Securities (USA) (“MUS”). He had previously headed both Investment Banking and Capital Markets for MUS. Mr. Chafetz joined The Bank of Tokyo-Mitsubishi, Ltd. in 1998 as the Head of Capital Markets from UBS. Prior to UBS, he spent ten years at Credit Suisse in a variety of roles in London and New York. 4

Overview of MUFG’s Global Corporate and Investment Banking (“Global CIB”) Business 5

MUFG Global Network MUFG Global Network  MUFG has an extensive global network with over 1,150 offices in approximately 50 countries including 350+ MUFG Union Bank branches in the U.S. and 650+ Krungsri branches in Thailand Frankfurt Hamburg Saint-Petersburg Calgary Dusseldorf Moscow Amsterdam Vancouver Ulaanbaatar Warszawa Birmingham Berlin Seattle London Minneapolis Prague Qingdao Toronto Shenyang Brussels Montreal Vienna Beijing Paris Munchen Vladivostok Almaty Chicago San Francisco Boston Tianjin Milano Dalian Barcelona Seoul New York Kentucky Genève Istanbul Los Angeles Lisbon Tehran Washington Wuxi Wuhan Dallas Madrid New Delhi Luxembourg Chengdu Shanghai Atlanta Neemrana Suzhou Shenzhen Doha Karachi Kowloon Cairo Houston Guangzhou Fuzhou Bahrain Taipei Dhaka Dubai Hanoi Kaohsiung Mexico City Abu Dhabi Mumbai Hong Kong Cayman Islands Yangon Chennai Manila Bangkok Caracas Bangalore Ho Chi Minh Penang Colombo Bogota Labuan Kuala Lumpur Phnom Penh Singapore Jakarta Bandung Lima Surabaya Rio de Janeiro San Paulo Johannesburg Buenos Aires Santiago Sydney Perth Melbourne Auckland 6

MUFG Performance by Business Segment (MUFG)  Global Banking segment represents approximately 27% 1 of the total MUFG Net Operating Profit Net Operating Profits by Business Segment (¥bn) FY15H1 ¥813.4 bn 2 FY14H1 ¥780.3 bn 2 Retail Banking 157.7 18% Global Global Markets Markets Retail 244.9 224.4 Banking 28% 26% 154.8 18% Investor Investor Services/ Services/ Asset Asset Japanese Management Management Corporate 37.0 31.9 Banking 4% 232.0 4% Global 27% Banking Japanese 235.1 Corporate 27% Global Banking Banking 221.0 200.5 25% 23% (Note) 1. Proportion of Global Banking Segment to total of the five business segments. All figures are in actual exchange rate and managerial accounting basis. 2. Including profits or loss from others 7

Historical Performance of Global CIB Business (BTMU) Gross Profits by Region  Global CIB Business 1 has been the growth driver in the past years.  Growth plateaued due to recent headwind in the Asian market despite active engagement in large event finance transactions primarily in the Americas Gross Profits by Region 2 (¥100M) 5,000 2,500 CAGR 8.9% 4,500 4,000 2,000 863 1,586 3,500 723 893 1,482 769 713 1,243 3,000 1,500 1,015 2,500 833 2,000 1,000 1,645 731 1,415 1,508 812 777 744 1,263 893 1,500 1,000 500 744 1,220 606 605 1,140 1,144 1,111 534 539 522 500 522 0 0 FY11 FY12 FY13 FY14 FY15 FY13 FY13 FY14 FY14 FY15 H1 H2 H1 H2 H1 H1 EMEA Asia Americas EMEA Asia Americas (Note) 1. Corporate and Investment Banking Business for non-Japanese global corporates. The figures on P.8,9,10 are BTMU consolidated base excluding KS and MUAH. and does not include MUSHD 2 .Local currency basis($/¥=115 ） . Each break down is before elimination of duplication, and excludes other gross profits 8

Historical Performance of Global CIB Business (Cont’d) (BTMU) Breakdown of Gross Profit by Region Americas 1 (¥100M) Asia 1 (¥100M) EMEA 1 (¥100M) 1,000 1,000 1,000 900 900 900 800 800 800 700 700 244 700 216 Non- Non- 226 193 496 interest interest 199 600 504 600 600 470 394 500 500 500 451 293 315 Non- 249 261 400 400 400 235 interest 300 300 300 579 574 Interest 540 532 509 200 200 200 Interest 351 319 309 296 285 Interest 281 283 275 271 240 100 100 100 0 0 0 FY13 FY13 FY14 FY14 FY15 FY13 FY13 FY14 FY14 FY15 FY13 FY13 FY14 FY14 FY15 H1 H2 H1 H2 H1 H1 H2 H1 H2 H1 H1 H2 H1 H2 H1 Loan Deposit Fee & Derivatives Forex Loan Deposit Fee & Derivatives Forex Loan Deposit Fee & Derivatives Forex (Note)1. Local currency basis. Each break down is before elimination of duplication and excludes other gross profits 9

Historical Performance of Global CIB Business (Cont’d) (BTMU) (Consolidated) Loans and Deposits by Region  Loan balance and deposit balance showed consistent growth Average Loan Balance by Region 1 (¥tn) Average Deposit Balance by Region 1 (¥tn) 20 10 19.3 19.1 18.5 18 9 17.3 16.5 4.8 5.3 15.8 15.7 4.4 16 8 14.9 4.0 3.5 6.9 2.9 3.2 14 7 2.4 12.9 12 6 2.1 5.4 2.6 4.8 5 10 4.5 9.8 9.4 9.8 8.0 8.2 9.0 2.2 8.0 7.7 3.9 4 8 3.7 2.1 6.7 1.7 3.1 1.4 1.2 2.7 6 3 2.6 2.7 0.8 0.7 1.9 0.6 1.5 4 2 1.6 1.4 1.5 1.3 1.2 1.1 4.8 4.8 4.7 4.7 4.6 4.5 4.3 4.2 2 4.0 1 1.6 1.4 1.3 1.1 1.1 1.0 1.0 0.8 0.8 0 0 FY11 FY11 FY12 FY12 FY13 FY13 FY14 FY14 FY15 FY11 FY11 FY12 FY12 FY13 FY13 FY14 FY14 FY15 H1 H2 H1 H2 H1 H2 H1 H2 H1 H1 H2 H1 H2 H1 H2 H1 H2 H1 EMEA Asia Americas EMEA Asia Americas (Note) 1. Local currency basis 10