Slides
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Mitsubishi UFJ Financial Group, Inc. July 2025 MUFG Investors Day 2025
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2 Retail & Digital（R&D） 3 Commercial Banking & Wealth Management（CWM） 13 Japanese Corporate & Investment Banking（JCIB） 19 Global Commercial Banking（GCB） 25 Asset Management & Investor Services（AM/IS） 34 Global Corporate & Investment Banking（GCIB） 39 Global Markets （GM） 45 Table of contents
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3 Retail & Digital Business Group Tadashi Yamamoto, Group Head
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4 R&D CWM JCIB GCB AM/IS GCIB GM FY24 review and future outlook *1 Consumer finance *2 The level assuming no significant changes from the expectation in the business environment Changes in FY24 ROE Future changes in ROE 71% Net profits ¥(23.0bn) Incl. one-off factor 6.5% Card settlement Others20年度 実績 Deposits etc. 23年度 実績 Credit costs, tax, etc. CF*1 Expenses 4% ：Expense ratio FY23 result FY24 result 4% Card settlement Deposits etc. 20年度 実績 Others 23年度 実績 Credit costs, tax, etc. CF*1 ExpensesFY24 result FY26 Approx. 6.5%*2 75% ５% One-off system impairment 94 65 49 12 11 Achievements, challenges and future initiatives FY 25 FY 26- MUFG Bank ABank BBank CBank D MUFG’s strengths in retail business The largest domestic customer base FY24 achievements 08 09 23 24 # of account openings # of credit card members Volume of home loans 07 08 23 24 Challenges New Disbursements exceeded ¥1tn 16 17 23 24 Reversal after 16 years Reversal after 8 years Become a significant strength with increase of deposits value in a normalized interest rate environment • Build a framework to support customers with all financial needs by launching a new service brand and integrating various functions • Continuously develop services such as launching a digital bank to fulfill customers’ needs, and expand the Group- wide customer base as well as deepen relationships Acquire new customers with a focus on young generation and enhance collaboration among products and services • Strategic investments to enhance MUFG Group-integrated financial functions • Reverse the downward trend in account openings/credit cards/housing loans Reversal after 17 years Deposit balance of retail customers(March 25/¥tn) (FY)
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5 R&D CWM JCIB GCB AM/IS GCIB GM New customersCancellation Increase average unit price by centralizing financial transactions in MUFG Vision of Retail & Digital Business Group －Aim at double digit ROE in mid- to long-term by Group-wide improvement of customer base x LTV*1 Concept of LTV management Vision Customer base LTV (average unit price) Rate of multiple transactions usage*5 Most important KPIs *1 Life Time Value *2 Includes inactive customers *3 LTV may vary due to changes in calculation methods *4 Two or more transactions among asset management, home loan, card loan, auto loan, salary and pension receipt, MUN credit and debit cards, other automatic bank withdrawal *5 MUBK customers only • Expand Group customer base, increase market share, and improve multiple transaction usage rate to maximize LTV by leveraging bank accounts 10-years LTV(average unit price)by # of transaction types *3 More than two transactions＊4 • Enhance stickiness and increase mid to long-term profitability by encouraging more customers to engage in multiple transactions over an extended period throughout life Average of customers engaged in multiple transactionsAverage of all customers*2 LTV account holders in their 20s 20s 70s60s50s40s30s 20s 70s60s50s40s30s Annual revenues MUN Debit cards Home loans Asset manage- ment JPY deposits Domestic & oversea settlement Card loans, etc. Deposit account only One transaction Two transactions ¥200K Approx. 13x Current Future 31% 32% (Age) FY 20 FY 21 FY 22 FY 23 FY 24 FY 26 Mid to long- term # of customers*5 Population-based customer share Increase share27% Net changes in customer numbers FY 20 FY 21 FY 22 FY 23 FY 24 FY 26 Mid- to long- term
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6 R&D CWM JCIB GCB AM/IS GCIB GM Services connected to the life of each customer －Launched a service brand “M-tto.” Stronger connection enables MUFG to provide greater convenience and value “Comprehensive financial services for every life stage” provides customer experience oriented financial supports Youth Middle age Senior age Investment Daily touchpoints NEW NEW NEWNEWNEW NEWNEWNEWNEW Visa prepaid card app QR settlement Credit card More rewards Released in June 25 Point payment app To be released in FY26 Loyalty program Group-wide “M-tto” point To be released in FY26To be launched in FY26 Common ID Digital platform for inheritance advisory To be released in FY26 Inheritance services Internet banking Renewed in Jun 25 Branch network Open new branches and reorganize functions gradually Digital bank To be launched in FY26H2 Membership services for the semi high net worth To be renewed in FY26 Robo-Advisory serviceOnline securities Payment Saving Inheritance
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7 R&D CWM JCIB GCB AM/IS GCIB GM Customers can utilize various financial functions offered by MUFG, primarily through MUBK, which increases the market share for the entire Group. Core financial functions are provided by subsidiaries, while economic zone is shared with 3 rd parties －Core financial functions inside the Group enable diversification of monetization points and swift decision-making Coverage expansion through strategic investments *1 Simple aggregation of individual customers of MUFG consolidated subsidiaries within the R&D Business Group Phase 0 （MUFG group ownership ratio） BaaS Increasing shares To be launched in FY26H2 （100％） （40.1％） （22.5％） （100％） （100％） （49％） （68.8％） （51.5％） （49.4％） （100％） （60％） Dominant customer base approx.60mn in total*1 MUFG group Will, inheritance, and real estateDeposit, loan, asset management Asset management(fund) Credit card, QR settlement Consumer finance Credit card, QR settlement Asset management (face-to-face, online) Provide Robo- Advisory services to approx.20 alliance partners mutual complement mutual complement Consolidated as a subsidiary in Mar 25 Consolidated as a subsidiary in Jan 25 Manage and sell the most popular investment trust in NISA Consolidated as a subsidiary in Apr 25 Consolidated as a subsidiary in Jun 23 VANDLE CARD exceeds 12mn downloads Cloud, AI （100％） （100％） （100％） Digital bank
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8 R&D CWM JCIB GCB AM/IS GCIB GM Enhancement of asset management business －Expand market share by strengthening the asset management business through strategic investments, improving product quality, and fostering external collaborations WealthNavi(WN) dominates Robo-Advisor market Enhance product competitiveness of MUeSS*2 through group collaboration • Consolidated as a 100% subsidiary in January 25. Number of brokerage account opening dramatically increased with Group-integrated product enhancement and campaigns, etc. # of brokerage account opening • MUAM has No.1 net AuM in Japan for publicly offered equity investment trusts (excl. ETFs) with its core product eMAXIS Slim 402.5 662.6 777.6 1,146.1 1,356.3 Mar 21 Mar 22 Mar 23 Mar 24 Mar 25 WN direct Alliances Changes in AuM(¥bn) Fund with largest capital inflow since launch of new NISA Net AuM(¥tn) eMAXIS Slim Expand offering through approx. 20 alliance partners # of users 440K users*1 yoy +42K users # of “Robo-NISA” users 115K users*1 yoy +21K users Mar 25 Auto sweep from bank accounts Apr 25 Installment for investment trust using credit card Over 50companies “eMAXIS Slim” series Exceed ¥16tn*3 Sales companies Net AuM *1 As of the end of March, 2025 *2 Mitsubishi UFJ eSmart Securities *3 As of June 23, 2025 NISA Campaign across the Group • Both AuM and the number of users are steadily increasing • Support broad customers’ investment through alliances 0 50000 100000 150000 200000 250000 FY22 FY23 FY24 eMAXIS Slim Others11.3 18.4 24.5 Phase 0 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 FY23 FY24 Approx. 10x
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9 R&D CWM JCIB GCB AM/IS GCIB GM Services connected by M-tto New rewards program promoting daily useComprehensive asset management app “connected” to each service －Update account app and card functions. Develop into a service embodying M -tto’s vision of convenience and value • Update specifications to allow one-stop access from the MUBK app to other services. Transform into a gateway for all transactions Phase1(1st batch) *1 The number of customers who used “Mitsubishi UFJ app(Internet banking for individual customers)” in the last 1 month. MAU : Monthly Active User *2 Number of issued Mitsubishi UFJ cards QR settlement Digital salary deposits are available This Autum # of IB MAU*1(mn) Smooth navigation from balance confirmation to QR payment process 8.8 10 0.5 1.5 2.5 3.5 4.5 5.5 6.5 7.5 8.5 9.5 FY24 FY26 Visa prepaid card Credit card Online securities Robo- Advisory • In addition to the new rewards program that allows earning points through daily use and enjoying the benefits, the update also improves convenience App supporting daily use One of the highest reward program in the industry One of the largest numbers of affiliated partners in the industry Enjoy 7% point rewards with affiliate partners anytime Enjoy up to 20% point rewards when conditions are met A total of 30brands including lifestyle and entertainment services Beneficial rewards program × Impact of the release MUFG card Global point WALLET Simple point management, available at VISA-affiliated partners worldwide 0 10 20 30 40 50 60 70 80 0 20 40 60 80 100 120 Over 4x Over 2x # of branded searches # of monthly card issuance *2 0 20 40 60 80 100 120 FY24 FY26 June 23 June 24 June 25 June 24 June 25 # of annual card issuance (K) *2 540 1,000
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10 R&D CWM JCIB GCB AM/IS GCIB GM Consider lifestyle and inheritance Prepare for emergencies Group-based loyalty program with a unified ID Release of digital platform for inheritance －Become “always connected” MUFG by integrating all customer experiences, from daily activities to life events and inheritance • Unify the IDs to access M-tto services with a single ID which enables to standardize the point system and provide group- wide rewards Complete overhaul of excellent club • Digital PF to “connect” customers’ key assets and sentiment to the next generation • Become an MUFG that is always “connected” with each customer and their family across generations • Enhance retention through a membership platform for high net worth and semi-high net worth customers • Designed to enjoy the “exclusivity” with additional benefits on top of the loyalty program Membership is upgraded with “more” and “longer” use Designed to provide greater benefits and accessibility Build mid- to long-term relationship with stronger loyalty Loan Asset ManagementDaily use Settlement Common ID Group-wide reward points STAGE RANK Interest rate Fees Points 5-level stage ranks with benefits for each rank Enables the succession of transaction status and privileges from the parent generation Image Future design simulation Supports by AI concierge Money management by family member (prepare for dementia) Simple and speedy succession(prepare for inheritance) Services connected by M-ttoPhase1(2nd batch) Home Card Exclusivity Exclusive advisory service for members A wide range of financial services with interest rate and fee benefit plans Non-financial benefits offered by affiliated companies Exclusive information sharing and web seminars Offer an exceptional experience Permanent interest rate benefits Excellent club
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11 R&D CWM JCIB GCB AM/IS GCIB GM Future developments : launch of digital bank －Enhance MUFG's consolidated strength with a platform that swiftly adapts to changing customer needs Create a platform that quickly delivers advanced and competitive services tailored to customer needs Agile and adaptable system platform Corporate environment/culture that recruit and develop digital specialists Low-cost business model 1 2 3 Purpose of establishment • Enhance functions within M-tto services by elevating benefits of transactions and digital convenienceRapid service development to keep pace with and surpass the accelerating changes in society is essential Customer needs Competitive landscape Technological evolution • Sharp increase in asset management demands • Consumer preferences diversified since COVID-19 • Intensifying competition for deposits due to interest hikes • Entry of non-financial service providers into banking business • Generative AI • Authentication technology etc. Changes in the external environment Background Features and role within the group 信託銀行 Credit card QR settlement Loan Trust bank Face-to-face securities Online securities Dominant branch network/manned system Online consultation Branch ATM MUBK Digital bank Bank Phase 2 Attractive interest rate Advanced UI/UX Tailored proposal Extensive data Deployment of AI capabilities ×
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12 R&D CWM JCIB GCB AM/IS GCIB GM *1 Based on filing with FSA *2 function to share screen Branch/remote strategies conversion, customer touchpoint enhancement －Position branches as “a space for providing unique added value by MUFG” and reorganize branch network • Completed the phase of branch network restructuring • Convert branch network considering cost efficiency Identify candidates for future branch management in the mid- to long- term (Concept of function based reorganization) All line-up service for corporates/ individuals Deepen relationship with individuals Expand customer touchpoint • Aim at both “improving customer convenience” and “streamlined operations” through the deployment of co-browsing and AI solutions Real-time assistance for customer interface 有人 Utilize AI to guide to the best operator Branch strategy conversion Remote operation optimization with state-of- the-art technology Human capital : HR augmentation in retail business Customer Domain specific AI Inquiry Response AI Customer Operator Operator share the screen Deployment of co-browsing*2 Support operation Next-gen contact center Full banking M-tto square (Focus on individuals) FY25 Approx. 100 continue in FY26 Newly established Customer Service course to aim at becoming a specialist of branch management # of hires Specialized functions pop-up branches Aim to build mid- to long-term customer relationship and enter the phase to reorganize branch network FY21 FY22FY20 FY23 FY24 FY25~FY19FY18FY17 Domain specific AI 327 324 465 500 515 329 385 427 Function-based reorganization # of branches(the Bank)*1
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13 Commercial Banking & Wealth Management Business Group Yutaka Miyashita, Group Head
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14 R&D CWM JCIB GCB AM/IS GCIB GM 66% 60% Changes in FY24 ROE Future changes in ROE*1 Net profits +¥74.0bn 8.5% Solution/ derivative AMFY23 result Trusts FY24 result RWABase profits*1 Expense/ tax etc. 13% : Expense ratio Achievements and challenges given external environment 13% Numerator factors Denominator factor • Increased deposit income in normalized interest environment • Enhanced lending profitability by enhancing risk-taking capabilities • Improved succession-related loans by capturing large deals Major KPI Achieve- ments • Further improve loan and deposit income • Create further opportunities by enhancing owner approach Status of owner approach (Status of visit by specialists in HO) Chall- enge 0.53% 0.55% 0.59% FY23 FY24 FY26 FY23 FY24 FY26 0.7 1.0 1.0 Visited 5K companies Visited 11K FY23 FY24 +6K FY23 FY24 FY26 110.0 30.0 Solution/ derivative AMFY24 result Trusts FY26RWABase profits *1 Expense/ tax etc. Numerator factors Denominator factor FY24 review and future outlook Corporate Corporate × WM WM Approx. 15.5%*2 *1 Base profits: Lending, deposits, FX income *2 The level assuming no significant changes from the expectation in the business environment *3 The target to meet the certain requirement in owner companies Corporate Corporate × WM WM JPY deposit income (¥bn) Lending spread Loan balance related to business succession (¥tn) Target 40K*3 Potential for creating business opportunities Target 40K*3
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15 R&D CWM JCIB GCB AM/IS GCIB GM Low profitability Exceeding profit targets High profitability • Focus on further increasing deposits and preventing deposit outflows by enhancing positioning through business strategy proposals etc. and improvements for corporate settlement system as well as settlement-oriented activities • Improve profitability by enhancing risk-taking capabilities • In FY25, strengthen initiatives for high profitable deals while restraining low profitable lending Corporate (Loan & deposit / segment strategies) Improve loan portfolio Large corporate Initiative to acquire deposits Initiative for startups • Target customers based on corporate management issues and transaction relationships, make team-based efforts on business strategy proposals Portfolio for corporate loans (lending spread/ balances)*1 ¥4tn (25%) ¥13tn (70%) ¥1tn (5%) +1% (1%) +0% FY24: Lending spreads to corporate+2bp • Contributed to listing of two Unicorn-class startups in FY24 • Held MUFG Startup Summit with a total of 4,000 participants • Launched MUCAP*3 No. 10 fund (¥30bn) Strengthening profitability Shareholder return Capital enhancement Business strategy proposals End Jun. 24 End Jun. 25 65.0 58.0 Expected amount of fee income (¥bn) FY23 FY24 FY25 35 35.5 36JPY deposit balance*2 (¥tn) - For loan, focus on improvement of profitability of loan portfolio. Strengthen to capture deposits by settlement and raising deal position etc. - Focus on capital issues in the large corporate from a view of segment. For initiative of startups, promote to increase value, expand the scope, and enhance presence *1 Profitability managed by RWA *2 JPY deposit balance of general business corporation *3 Mitsubishi UFJ Capital FY24 result (vs FY23) Targeting and teaming up based on anticipated challenges Expand base/ Enhance presenceValue up +7.0
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16 R&D CWM JCIB GCB AM/IS GCIB GM FY23 FY24 FY26 FY23 FY24 FY26 • Promote front to obtain internal certification on succession and M&A • HO accelerates fostering professionals and career recruitment • Deepen knowledge of academia on family business sustainability with industry-academia collaboration • Expand customer touchpoints by holding seminars Increase specialits (people) Hold seminars for clientsExpand customer touchpoint Enhance internal organization Corporate × WM (Owner approach) Three cycle model Enhance organization / Expand customer touchpoint 2,200～ Shareholder restructuring (delist, etc.) Transfer shares to family (Testamentary) Leave assets (AM/ real estate) Business growth (loan/ M&A) Hand over business (M&A/ fund utilization) 280 1,220 2,000～ Owner approach Not visitedVisited*1 11K - Provide expert solutions leveraging multitude of practices to address diverse issues faced by business owners from ownership, business, and family perspectives - Accelerate approaching targets by enhancing internal organization through increasing specialists and leveraging knowledge of academia *1 Visit by specialists in HO Owner Target 40K companies MUFGMUFG MUFG Ownership view Family view Business view 1,330 1,970
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17 R&D CWM JCIB GCB AM/IS GCIB GM 70.0 110.0 140.0 FY23 FY24 FY26 27.0 33.0 40.0 FY23 FY24 FY26 Provide customer experience through WM communication media Expand touchpoints by DWA WM communication media (Membership website for high-net worth) Provide various contents*1 WM business (Advisory business model) AM • Proposal of portfolio • Product strategy Non finance Cross transactions Providing comprehensive solution Customer 300K people (Untapped 200K) RM （BK, TB , SC） MUFG • Strengthen career recruitment and new graduate recruitment for the WM course • Promote job rotation through integrated BK-SC operations Strengthen WM talents • Newly established customer development team to collaborate with BK and SC • Acquire next-generation customers through testamentary and asset succession Expand customer base Face-to-face • Introduced custom-made USD discretionary investment service (Apr-25) • Launch loan products for high-net worth customers (within FY25) Expand product/ services May-25 Non-face-to-face / digital - Achieve steady growth through a goal-based approach using an advisory business model - Focus on strengthening human capital and expanding products and services in face-to-face areas as well as enhancing non-face-to-face and digital approaches to “scale WM business” in mid to long-term Advisory business model Initiative to expand WM business *1 Broadcasting experiential content such as serialized magazines, videos, and seminar invitations Net operating profits in WM (¥bn) AM stock income (¥bn) Digital Wealth Advisor • Online interview by exclusively remote advisor • Provide remote solutions using WM digital platform • Family governance • Introduction of specialists • Asset succession • Lending • Real estate Goal based approach Booking online interview
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18 R&D CWM JCIB GCB AM/IS GCIB GM • Widespread use of the new CRM released in Apr-25 • Improve productivity by full-fledged AI installation Corporate infrastructure Corporate 200K companies Individual 300K people 50K 20K 120K 100K 200K Corporate business • Enhance share up activities • Expand startup support WM business • Newly established new business development team • Acquire next-generation customers through asset succession • Strengthen digital sales model Human capital• Focus on further expanding the customer base through mid to long-term share up activities in corporate banking and improving the digital sales model by leveraging the dominant customer base in Japan System (IT) - For customer base, focus on deepening relationship and expanding base in each business strategy - Enhance both the quantity and quality of sales activities through developing human capital, promoting the adoption of new CRM systems and fully implementing AI Customer base Human capital / System (IT) Sub-main Approached Not approached Main Medium rank or lower Transaction depth Quantity • Secure quantity with new graduate / career hiring Quality • Improve the resource acceptance framework • Bolster WM personnel development through the use of a Group- integrated professional development platform • Improve employee engagement by promoting understanding of strategies (IR within divisions etc.) • Adoption of autonomous office management ・ Establishment and the status of adoption of the office management policy Released Apr-25 • Centralized internal/ external information (dashboard) • Efficient managerial accounting • Generate interview scenarios • Automated interview records (transcription) • Prepare internal approval documents • Search procedures AI InstallationNew CRM *1 Loan: Balance for corporate, Deposit: Balance for corporate & individual, AM: AuM for individual Loan ¥18tn AM ¥20tn Deposit ¥58tn FY24 transaction volume*1
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19 Japanese Corporate & Investment Banking Business Group Masakazu Osawa, Group Head
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20 R&D CWM JCIB GCB AM/IS GCIB GM FY24 review and future outlook Changes in FY24 ROE Future changes in ROE ：Expense ratio FY24 review, FY25 outlook FY24 review • Achieved the highest ROE(14.5%) by leveraging B/S operations to capture interest rate movements and securing significant transactions with improved risk-taking • Largest net operating profits(¥559.7bn) among all business groups Achieve- ments Chal- lenges • Develop a resilient business model that remains unaffected by the external environment ① Continuous enhancement of the core banking business regardless of changes in the interest rate environment ② Capture large scale funding needs, leveraging risk-taking capabilities ③ Support growth of industrial domain, and create future pipelines FY25 outlook Strengthen balance sheet Enhance risk-taking Approach for the co-creation value External environment Strengths of JCIB Alliance with MS Integrated operations with overseas branches Integrated front office activities for the Bank and the Trust Bank Changes in industry and sector trends Framework to meet diversifying needs Changes in interest rate market conditions Hostile takeover Impact of trade policies Advancement in AI utilization 12% 14.5% Continuous enhancement of the core banking business and capturing large scale funding needs Credit costs revert to average levels Sustainably driving company-wide ROE Over 12%*1 12.5% FY23 result FY24 result Credit costs Non-JPY deposit ExpensesGross profits Others FY26 Net profits ＋¥70bn The highest NOP and ROE 12% 0.9% 0.7% ▲0.4% ▲0.2% 1.6% 14.5% 40% 39%Positive impact from large credit cost reversals and suppression of occurrences Gross profits FY23 result Interest income Non-interest income Expenses Others Credit costs FY24 result *1 The level assuming no significant changes from the expectation in the business environment (0.4%) (0.2%)
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21 R&D CWM JCIB GCB AM/IS GCIB GM 1.86 1.34 1.08 32.9% 28.3% 20.1% End Mar. 21 End Mar. 24 End Mar. 25 End Mar. 27 Domestic equity (Acquisition price) Domestic equity (Market price) / Consolidated net assets Strengthen balance sheet ∎ Lending spreads （JPY and Non-JPY）*1,2 Aim to achieve target of ¥700bn and less than 20% of total assets (FY24 result: ¥276bn) （¥tn） Lending Reduction of equity holdings*4 Less than 20% Capture high-profitability deals and event-related finances while maintaining high spreads Maximize VxR with business operation that matches the interest rate environment and maintaining/increasing transactional deposit ∎ Domestic lending average balance （JPY and Non-JPY) *1 ∎ JPY deposit spreads *1,2 Deposit ∎ Non-JPY deposit spreads*1,2 Target ¥700bn *5 *6 0.32% 0.54% 0.55% FY20 FY23 FY24 FY25 FY26 15 25 35 FY22 FY23 FY24 FY25 FY26 （¥tn） Corporate Product*3 0.48% 1.52% 1.45% FY20 FY23 FY24 FY25 FY26 99 100 FY23 FY24 FY25 FY26 Control sensitivity to mitigate decline in profits Maintain and increase deposit balance ・・・ ・・・ ・・・・・・ *1 Result of JCIB business group (the Bank) *2 Calculated as net interest income / average loan (deposit) balance*3 Non-recourse loan, Capital finance, and LBO senior loan, etc. *4 Sum of the Bank and the Trust Bank *5 Domestic listed equity securities (Market price in the category of “other securities” with market value (consolidated) + Deemed holdings (the balance of “Deemed holdings” stated in the Annual Securities Report)*6 Based on net assets at the end of September 2024 (FY24＝100) ∎ Profits from domestic and foreign settlement / FX*1 0.02% 0.04% 0.17% FY20 FY23 FY24 FY25 FY26
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22 R&D CWM JCIB GCB AM/IS GCIB GM Enhance risk-taking ∎ Non-recourse loan balance in the real estate field ∎ Fee income from real estate brokerage Value chain in real estate Approach to high added-value solutions ∎ M&A business Rank Advisor 1 MUMSS 2 Nomura securities 3 Goldman Sachs 4 Mizuho FG 5 JP Morgan 6 Daiwa securities 7 Sumitomo Mitsui FG M&A advisory league table*6 Case example Sekisui House's largest acquisition MUMSS was appointed as FA. Several banks including MUBK supported funding for M&A Sekisui House became No. 5 home builder in the U.S. after this deal Acquisition of a publicly listed U.S. home builder*7 by Sekisui House *1 Fund Manager *2 General Partner *3 Limited Partner *4 Mitsubishi UFJ Real Estate Asset Management *5 Mezzanine finance for subordinated loans and preferred shares*6 Created by MUMSS from London Stock Exchange Group (LSEG). Publicly announced projects involving Japanese companies (including real estate acquisitions). MUMSS includes deals advised by Morgan Stanley*7 M.D.C Holdings, Inc. (FY24 Transaction amount basis) Established “Through-the-Cycle Fund” (March 2025) SPCSPC SPC MUTB FM*1 Asset Manager MUREAM*4 External AM GP*2 Fund Investment MUBK LP*3 Investment Investments that identify the cyclicality (intrinsic value) of the real estate market 79 96 100 FY20 FY23 FY24 FY26 33 79 100 FY20 FY23 FY24 FY25 FY26･･･ (FY24＝100)(FY24＝100) 76 87 100 FY20FY23FY24FY26 67 119 100 FY20FY23FY24FY25FY26 76 106 100 FY20FY23FY24FY25FY26・・・ ・・・ ∎ Capital finance balance*5 ∎ Solution fee∎ LBO senior loan balance (FY24＝100) (FY24＝100) (FY24＝100)
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23 R&D CWM JCIB GCB AM/IS GCIB GM Approach for the co-creation value Capture the expansion of customers’ business domains and nurture new industries and businesses together with them. Create new business opportunities for MUFG Research & Advocacy Engagement Business co-creation / development (incl. investment) Origination (Value chain perspective) Acquisition of business opportunities Specific cases on co-creation of value MUFG Transition Whitepaper 3.0 Organizing key common challenges in driving GX and accelerating dialogue with customers IPO support for Astroscale HD Group-based support for the largest IPO in the growth market Kyushu Semiconductor Forum Hosted the forum together with Fukuoka FG under the theme of "Sustainable Growth of the Domestic Semiconductor Industry." Social implementation support of autonomous driving services Promoting autonomous driving services through the investment in May Mobility (US) SLL *2 support for Nagase & Co., Ltd. Setting targets for supply chain emission visualization and reduction. Selected as a model case by the Ministry of the Environment *3 Visualization of GHG using satellites Efficiently and objectively visualizing GHG using satellite data to contribute to emission reduction Concept regarding the semi- conductor platform with NTT Data Initiating discussions with NTT Data to build a platform that contributes to supply chain resilience Startup Exhibition with Toyota Hosted the event connecting suppliers and startups combining the networks of Toyota and MUFG Space GX*1 Semiconductor Mobility *1 Green Transformation *2 Sustainability Linked Loan: A loan that sets Sustainability Performance Targets (SPT) aligned with the borrower's sustainability goals, and links the loan conditions such as interest rates to the borrower's performance against the SPT *3 A model case related to the Green Finance Model Case Creation Project solicited by the Ministry of the Environment Platform Semiconductor supply chain Business flow/ ESG data Finance capabilities ￥Nagase & Co., Ltd.Suppliers Promoting emission reduction Setting targets for emissions across the entire supply chain ©GHGSat ©JAXA ©Astroscale
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24 R&D CWM JCIB GCB AM/IS GCIB GM Human capital AI utilization MUFG Proposal Graph formatting Knowledge search Xx Xx Xx Xx Xx Xx Xx Xx Xx Xx Xx Xx Slide revision Draft preparation AI agentUser 2 3 Release a proposal data lake as a knowledge-sharing portal ⇒ Reduce the perceived workload for proposal creation by 50–90% through effective knowledge utilization FY26 FY25 FY24 Optimize the output of providing knowledge by implementing AI agent and realizing autonomous search processes AI agent automatically drafts proposals by utilizing accumulated knowledge and internal/external data 1 2 3 Data integration Dialogue Roadmap Vision Engagement / Corporate culture Distributed Web program through NewsPics Employee enablement and progression Sharing examples of industry development and business co-creation. Promoting network expansion and culture integration. vs FY20 7× Mid-career hires Qualified person Approx. 100 Ex qualification ※ Established in FY24 Chicago Booth×MUFG Rising Talent Program Participating in a program at the University of Chicago together with our customers. Strengthen the alumni network in the third term. Personnel appointment Talent management system development Strengthen business foundation Aiming to advance human resource management in JCIB (Starting in FY25) Personnel data Experience, achievements, and skills Personnel management Place- ment Develop- ment Appoint- ment Linkage Proposal sharing and viewing Internal and external data Proposal data lake 1 Maximize both the quality and quantity of proposal-based activities through AI utilization Pursuit of “employee enablement and progression” and “create an agile culture” that meet customer expectations
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25 Global Commercial Banking Business Group Yasushi Itagaki, Group Head
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26 R&D CWM JCIB GCB AM/IS GCIB GM 3.5 26.4 ×7.5 FY13 (investment) FY24 135.5 285.3×2 *6 FY18 (GCB launch) FY24 FY24 result 減損戻り BDI VTB・ SBC KS Other FY26 • The GCB Business Group recorded all-time high NOP • VTB and SBC also posted record profits FY24 review and future outlook Future changes in ROE GCB credit costs (¥bn) GCB NOP (¥bn) VTB and SBC profits (equity earnings)*7 (¥bn) Changes in FY24 ROE External environment Review of FY24 Macro- economic environment • Maintaining high growth, but monitoring the impact of economic downturn on consumer spending and loan demand, and the interest rate policies in each country Trade policies • Monitoring Thailand and Vietnam due to their high reliance on exports to the United States, and have relatively significant impact on their economies Achievements • Higher credit costs at KS overseas subsidiaries and BDI subsidiaries Challenges • New investments in 2 digital finance companies, expanding our economic sphere 56% 55% FY23 result VTB・ SBC KS BDI Other FY24 result 9% Net profits+¥20.3bn*1 11%*1 6.5% 6.5% 9.5%*3 Approx 10%*3,5 Approx 7%*5 : Expense ratio *1 Excludes impairment losses. Includes KS impact(The impact included in FY24 results due to the change in the consolidated closing period for KS to align with MUFG’s fiscal year) *2 VietinBank and Security Bank Corporation *3 ROE before amortization of intangible assets *4 Impairment losses and KS impact *5 The level assuming no significant changes from the expectation in the business environment *6 Excludes KS impact. Total amount including KS impact was ¥351.2bn *7 Equity share of net profits before subtracting amortization of intangible assets *8 Excludes KS impact. Total amount including KS impact was ¥196.0bn One-time factors*4 128.8 160.5 FY23 *8 FY24 FY29 *2
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27 R&D CWM JCIB GCB AM/IS GCIB GM 3.5% 3.9% 4.3% 4.1% 2.9% 3.4% 3.5% 3.3% KS 主要4行平均 Krungsri (Bank of Ayudhya) Domestic corporate loan*2 (¥tn) Credit costs / Credit cost ratio*4 (¥bn) NOP and net profits since the investment(¥bn) NIM vs. Peers*3 +0.6ppt True Internet Data Center Supporting major telecom firm True in a data center construction project, including term loans for a total of around ¥5.6bn. (¥bn) Jan–Dec 2024 YoY Jan–Mar 2025 vs. Jan–Mar 2024 Gross profits 674.4 +63.1 163.1 (6.4) Expenses 299.8 +27.7 74.5 +1.6 NOP 374.7 +35.4 88.6 (8.0) Credit costs 201.4 +44.7 43.9 (10.0) Net profits 133.8 (12.0) 33.1 (0.0) Loan Balance*2 (¥tn) 8.3 (0.5) 8.3 (0.4) • Leveraging the Ascend Money investment to generate collaborative deals with the CP Group Deeper business ties with local conglomerates • Applying stricter credit standards and improving asset quality mainly for domestic auto loans, SME business, and Hattha Bank Strengthening credit control *1 Financial results as disclosed in KS’s financial report based on Thai GAAP. Converted into JPY with THB1=¥4.40 *2 End balance *3 Average of Bangkok Bank, Siam Commercial Bank, Krungthai Bank, and Kasikorn Bank *4 Credit costs as a percentage of loan balance Latest Financial Results*1 Domestic corporate loan decline bottoming out Steady profit growth since investment, NIM above peers Credit costs steadily decreasing Auto 153.5 374.7 52.7 133.8 Dec 13 Dec 24 NOP Net profits ×2.5 ×2.4 3.04 3.11 3.00 2.90 3.03 24/3 24/6 24/9 24/12 25/3 +5% ASEAN Biz SME Average of peer banks Dec 24 Mar 24 Jun 24 Sep 24 Dec 24 Mar 25 Dec 23 Dec 24 Mar 25Dec 22 CP Gr MUFG 54.1 51.9 49.3 46.2 44.0 24/3 24/6 24/9 24/12 25/3 Mar 24 Jun 24 Sep 24 Dec 24 Mar 25 2.5% 2.4% 2.3% 2.3% 2.1% (19%) (0.4%) Credit costs Credit cost ratio
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28 R&D CWM JCIB GCB AM/IS GCIB GM 1.1 1.3 0.5 0.5 BDI単体 Adira 1.4 1.5 10.4 8.2 7.3% 6.7% 与信費用 与信費用比率 Progress in revitalizing the consumer finance business and reinforcing the business platform (¥bn) Stronger business platform after the Adira-Mandala integration, capitalizing on steady market growth Loan Balance*2 (¥tn) (¥bn) Jan-Dec 2024 YoY Gross profits 185.3 +6.9 Expenses 103.5 +6.0 NOP 81.7 +0.9 Credit costs 43.2 +7.0 Net profits 29.3 (3.0) Loan balance*2 (¥tn) 1.8 +0.1 *1 Financial results as disclosed in BDI’s financial report based on Indonesian GAAP. Converted into JPY with 1IDR=¥0.0098 *2 End Balance *3 PT BCA Finance *4 PT Mandiri Tunas Finance *5 PT Federal International Finance *6 Independent research by Adira and MUFG, projections for 2-Wheel from FY26 onwards are based on the BMI report and independently compiled by MUFG *7 Internet banking app for retail customers provided by BDI Deposit Balance*2 (¥tn) +9% FY24 Loan Balance vs. Peers (¥bn) Branch transformation program also contributing to profits Adira’s standalone credit costs decreasing after peaking in Mar2024 Increase in transactions driven by enhanced D-Bank Pro*7 YoY FY24 New-Style Branches FY24 Old Branches Number of new customers +101% +62% Income from fees and commissions ＋23% +17% Loan balance ＋43% +13% Bank Danamon Latest Financial Results*1 Growth and governance in auto business promotions BDI is driving loan growth, deposit balance also solid 6.3 6.7 0.9 1.0 22年 23年 24年 25年 26年 27年 28年 2-Wheel 4-Wheel Automotive Market Size (mn vehicles) • More stringent credit criteria • Increased collections staff • KPIs focused on debt quality Forecast*6 YoY FY24 Active users +11% Number of transactions ＋28% FX transaction volume ＋66% +11% 819.3 610.5 548.8 61.7 BCAF*3 Adira+ Mandala MTF*4 Adira FIF*5 Mandala BDI non-consolidated Dec 23 Dec 24 Dec 23 Dec 24 Credit costs Credit cost ratio 24/3 24/6 24/9 24/1223/12 Dec 24Sep 24Jun 24Mar 24Dec 23 22 23 24 25 26 27 28
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29 R&D CWM JCIB GCB AM/IS GCIB GM 4% 2% 2% 1% ASEAN 米国 欧州 日本 2.7 (1.1) 10.1 18.6 22.5 26.2 36.5 35.8 42.8 80.6 93.6 95.3 13年度 14年度 15年度 16年度 17年度 18年度 19年度 20年度 21年度 22年度 23年度 24年度 Our vision through the expansion of MUFG’s economic sphere Building a commercial banking platform by investing in PBs*1 Building MUFG’seconomic sphere by implementing the PB Strategy and the Asia x Digital strategy GCB revenue portfolioProfit portfolio of Asia*5 (Net profits excl. amortization of intangible assets) GCB Other than GCB Asia overall ×1.6 Up to 45% 4% 4% 2% 2026 GDP growth forecast*3 • Maximize our ability to capitalize on growth in Asian countries by combining coverage of the corporate and mass retail segments by PBs with gaining access to the unbanked segment by utilizing digital finance. GCB net profits*2 (¥bn) Strategic transition of the GCB Business Group Medium- to long-term business portfolio goals 2010s 2020s Unbanked population ratio*4 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 U.S. EU Japan FY24 FY29 *1 Partner Banks *2 For the FY13–19 period, GCB net profits are the total net profits of the four PBs under Japanese managerial accounting standards. MUAH impact is excluded from GCB Business Group net profits for the FY20–24 period. FY19 and 21 are excluding the impact of sales of shares in Ngern Tid Lor Co., Ltd, FY24 is excluding KS impact. Net profits including the impact are, FY19: ¥52.3bn, FY21: ¥65.0bn, FY24: ¥65.9bn *3 Source: International Monetary Fund *4 Source: Global Findex, Global Finance *5 FY24 excludes KS impact GCB ×2.3 KS BDI Asia x Digital Approx. 20%SBC VTB Capturing the growth of countries as a whole through a combination of PB and digital strategies
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30 R&D CWM JCIB GCB AM/IS GCIB GM Industry Presence (2024) 2nd (by loan balance) 5th (by net profits) Strategy by country: ① Indonesia – Fusion of conventional and digital finance platforms *1 Customers who do not have full access to financial services or whose needs are not met *2 Customers without bank accounts *3 Source: London Stock Exchange Group. Excludes bilateral and club loans *4 Based on the Bain & Company report, independently compiled by MUFG Auto finance Expansion of MUFG’s economic sphere in Indonesia Expand financial services and capture growth through integration with digital finance in Indonesia Commercial banks Mass segment and middle class High net worth individuals Unbanked Population*2 Underbanked Population*1 Individual customers Housing loans Consumer loans Auto loans Conventional Finance Loans (offline) Loans (online)Corporate loans Digital Finance 85,000 companies 6 million individual customers 60 million individual customers Large local corporates SMEs Large global corporates Corporate customers Corporates Mass segment and middle class Unbanked population • Number of retail customers 6 million people • Number of company-owned EC sales points 90,000+ • Number of affiliated sales points 20,000+ Utilization of digital channels MUFG collaborative profit (USD mn) 10 60 Track record as lead managing underwriter for syndicated loans*3 Growth of PBs through collaboration with MUFG CAGR +55% 14th 5th FY20 FY24 FY21 FY24 1,443 11,217 CAGR +23% Capture of growth in digital finance providers • Start of support for collaboration among investees Digital finance revenue pool*4 (USD mn) Examples of recent collaboration 2024 2034
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31 R&D CWM JCIB GCB AM/IS GCIB GM Strategy by country: ② Philippines – Expand services by investing in top payment providers August 2024: Agreement to invest approx. ¥63.3bn Debt provision by MUFG and SBC Business alliance with SBC and SBF Increase of transaction volume between MUFG and Ayala Expansion of MUFG’s economic sphere in the Philippines Overview and aim of investmentAbout Mynt (commonly known as “GCash”) Housing loans Consumer loans Payment servicesLoans (offline) Loans (online)Corporate loans Conventional Finance Digital Finance 82,000 companies Founded in 2015, Mynt is the Philippines’ largest digital payment provider Mynt has firmly established its business presence by utilizing the economic spheres of Ayala and Globe Payment services, digital loans Retail stores (shopping malls, etc.) Major domestic mobile carrier Large local corporates SMEs Large global corporates Corporate customers Mass segment and middle class High net worth individuals Unbanked population Underbanked population Individual customers Used by 8 in 10 adults *1 The number of adult population in the Philippines : approx.70 million（source：UN World Population Prospects）
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32 R&D CWM JCIB GCB AM/IS GCIB GM Medium- to long-term strategy by country Country Strategic Direction Platforms Commercial Bank / Auto Loan Non-Bank / Digital Thailand • Rebuild earning capabilities (by streamlining domestic businesses and enhancing overseas business management) • Increase transactions by leveraging investment in Ascend Indonesia • Strengthen intra-group collaborations such as those with Mandala and other investees in the digital area Philippines • Expand synergies through collaboration with HCPH, Mynt, etc. Vietnam • Maximize the ability to capitalize on growth by taking advantage of the characteristics of a state-run bank India • Continue to seek business opportunities in both commercial banks and non-banking financial companies Overview of each country’s strategy and platforms
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33 R&D CWM JCIB GCB AM/IS GCIB GM Number of Digital Finance Users*3 (mn people) Towards achieving sustainable growth • Attended by over 200 people from 50 participating companies. More than 50 business matching meetings were held to facilitate creating synergies between investees. 67 over100 • Plan to extend employee dispatch to investees in the digital area in order to develop global digital management talent • MUFG dispatched a Deputy CEO to an overseas subsidiary of KS Aiming to cover 1 in 4 of the ASEAN adult population*4 10 years from now • A total of over 120 people participated in MUFG Tech Sessions, which were held four times by the Digital Strategy Division • Cross-selling for Home Credit’s customers in cooperation with Qoala (an insurance tech company invested in by MUIP*2) Establishing a digital ecosystem that connects investees (MODE*1) Contribution to financial inclusion efforts Human capital management 2nd MUFG Fintech Festival (Singapore) Contributing to improving individuals’ standard of living and accelerating economic growth in Asia Advancing knowledge-sharing and collaboration through MODE FY24 FY34 Examples of recent activities and future policies • Start exchanging human resources among GCB, PB, and investees in the digital area to share knowledge • Strengthen governance control by dispatching personnel to management positions and key posts in the risk management area *1 MUFG Openly-connected Digital Ecosystem initiative *2 MUFG Innovation Partners *3 Number of borrowers and payment users of investees *4 The proportion of digital finance users within total adult population of approximately 400mn in partner bank countries (Thailand, Indonesia, Vietnam, Philippines) (Source: UN Population Prospects)
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34 Asset Management ＆ Investor Services Business Group Takafumi Ihara, Group Head
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35 R&D CWM JCIB GCB AM/IS GCIB GM 71% 74% 74% 71% 68.4 74.5 80.3 158.5 232.8 273.6 158.7 152.3 166.8 Achievements and challenges given external environment FY24 review and future outlook Changes in FY24 ROE Net profits＋¥8.1bn ISFY23 result Pension FY24 result M&A/ Economic capital etc. AM 9.5% : Expense ratio Numerator factors Denominator factor Impairment losses on goodwill etc. 13.5% • Gross profits demonstrated steady growth, excluding the impact of market value and FX AchievementsChallengesShort term • Uncertain market condition due to trade policy negotiations Mid to long-term • Pressure from customers for fee compression • Strengthen investment performance and expand operational capabilities for medium- to long-term growth • Further expansion of IS function Trend of gross profits (¥bn) ※Excluding impact of market value/ FX 16%*1 Future changes in ROE 9.5% :Expense ratio FY24 result Amortization of goodwill/ Economic capital etc. FY26 Numerator factors Denominator factors AM IS Pension Lack of impairment losses 385.6 459.6 520.8 570 FY23 FY24 FY25 FY26 Gross profits AM+IS+Pension (Excluding market value and FX) CAGR:+14% FY24 main results *1 Before amortization of goodwill *2 The level assuming no significant changes from the expectation in the business environment *3 Excluding ETF 12%*1 12%*1 IS Domestic AuA AM PO Investment Trust Balance*3 Pension Pension customer rating Industry No.1 Industry No.1 No.1 in Trust Banks Impact of market value 7.2 9.9Approx. 15.5%*2 Approx. 19%*1,2 Approx
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36 R&D CWM JCIB GCB AM/IS GCIB GM AM Provide services that exceed customer expectations • Implemented initiatives to strengthen investment performance and capabilities through compensation system reform, collaboration among business groups, and funding support for emerging investment firms IS Contribute to improving efficiency in AM industry • Continue to expand BPO *1 services. Achieved target of MTBP's BPO contract balance ahead of schedule Pension Contribute to promoting autonomous asset formation for all generation • Increase DC investment trust ratio by 5% from last year via providing D-Canvas and new DC products (eMAXIS Slim) Contribute to making Japan a leading asset management center Key progress in each area Major KPI KPI ①1 AM: MUFG group collaboration AM/IS Credit Management Division (Newly established) Global Markets (Treasury etc.) Credit area (CLO and other securitized products) Investment functions ＆ HR Investment advice • Transfer part of the credit investment functions, which have been developed over many years at TB and BK (Global Markets Business Group),to MUAM (AM/IS Business Group). IS: Providing BPO services by utilizing Aladdin® • With the introduction of BlackRock Aladdin®, MUFG realizes an efficient operating model based on advanced work division in AM and administration by providing specialized middle & back-office services on a platform connected to AM companies 123 127 145 200 FY23 FY24 FY26 ・・・ FY29 65 87 95 100 FY23 FY24 FY26 ・・・ FY29 ① AuM (¥tn) ②AuA (¥tn) 1 2 vs initial target +¥25tn MUFG (Middle & back-office operation) AM company (Front etc.)Data conversion Automatic connection Before AfterAladdin® Aladdin® AM company (Front etc.) MUFG (Middle & back-office operation) Aladdin® PIC*2 in AM company the Bank the Trust Bank MUAM Data conversion Automatic connection KPI ①2 vs initial target +¥10tn *1 Business Process Outsourcing *2 Person in charge
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37 R&D CWM JCIB GCB AM/IS GCIB GM Result Plan CLO No.8 Mezzanine focus fund European infrastructure fund No. 4 Sales Middle /back Bundled services Inorganic Global AM/IS Global ISGlobal AM Basic strategy • Strengthen private AM capabilities - Develop revenue base by expanding products that meets customers needs Trends in AuM of overseas private asset & base fees 0 100 200 300 400 0 20 40 60 80 2021 2022 2023 2024 2026 AuM Base Fee（右軸） (AUD Bn) （AUD Mn） • Inorganic growth supported steady growth of AuA and gross profits • Leverage the global network to meet diverse customer needs • Build resilient revenue and customer base to strengthen one-stop services and expand regions Product Fund admin Fund finance Fund FX Region CustodyLending etc. Singapore, Hong Kong Europe US AUS, India Basic strategy Global officers & employees Approx. 9,200 Global branches Approx. 25 countries Overseas AuA / Global network Middle Eastern SWF*1 the Trust Bank Anchor investment*2 Anchor Investment*2 Obtaining commitments Customers the Trust Bank European Senior Direct Lending Fund CLO No.7 North American Infrastructure Fund (Unlisted infrastructure)(European private debt) • Create synergy - Expand TB's Japanese stock products to overseas investors through FSI - Expand revenue by utilizing AM × IS functions Status of new private product setups under FSI AuA (USD bn) Gross profits (¥bn) Pension, transfer agency 60 100 140 180 220 1,000 1,100 1,200 1,300 1,400 FY23 FY24 FY26 AuA Gross profits (Right) *1 Sovereign Wealth Fund *2 Providing investment when a fund is established etc. 0 0
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38 R&D CWM JCIB GCB AM/IS GCIB GM Region Japan AUS/ Europe Others Private Public Region USAPACEurope Product • Consider acquisition of global AM company in addition to obtain private AM capabilities to meet the diverse customer needs and build a system that can seamlessly provide products and services *1 Emerging Manager Program *2 Former company name Link Administration Holdings Limited (Australia) Discussions and initiatives for future growth Inorganic strategy (Global IS) Inorganic strategy (Global AM) Existing AM business Acquisition of global AM Management focusing on human capital Value-added services Investor Services Expand function Pension & Market Services Bolt-on acquisition Expansion of job- based HR system • Expand job-based HR system to recruit and retain specialized AM professionals MUFG Global EMP＊1 • Launched "MUFG Global EMP" talent development program to enhance AM base and cultural reform • Dispatch young FMs to FSI’s AM team Fund finance Fund FX Security lending Admin services Pension admin Transfer agency Fund admin Custody Product Region Expansion of functional axis (Value-added services, new businesses, etc.) MUFG Pension & Market Services (MPMS)*2 MUFG Global EMP Young FM Job-based HR system (AM) • Acquired MPMS in May-24. Entered overseas pension and transfer agency business - Pension: Top share in AUS, approx. 40% of private pension subscribers/ 10M accounts - Transfer agency: Approx. 6,000 customers/ 13M shareholders, in AUS, UK, India Completed introduction of governance and management structure under MUFG Optimization of business operations and systems (responsiveness to customers needs, improvement of operation quality, cost reduction, etc.) Synergy to collaborate with MUFG • Cross-selling to overseas entities of Japanese corporates and global clients Cost reduction across entire group • Cutting cost by integration of operational bases etc. Business integration process Growth strategy Active FM External partnership Analyst Trader Passive FM NEW MUFG FSI Adopting entity Expand presence & customer base Expand presence & customer base Gaining presence and customer base in various global markets the Trust Bank the Trust Bank MUAM the Trust Bank MUAM
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39 Global Corporate & Investment Banking Business Group Fumitaka Nakahama, Group Head
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40 R&D CWM JCIB GCB AM/IS GCIB GM 6.5% 7.5% 0.6% 1.2% 0.1%(0.2)% (0.6)% 56% 52% FY23 FY24 7.5% FY24 External Customer External Macro- economies Competitive Global Peers Changes in FY24 ROE*1 Future changes in ROE*1 Achievements / Challenges / External Competitive Environment FY24 review and future outlook Achieve- ments • Uplifted interest income by continuously improving lending spreads and advancing portfolio rebalancing through BSO *5 • Increased fee income in areas of global strength, includingProjectFinance(PF)and Aviation • Improved expense ratio year-on-year despite the rise in overseas personnel and regulatory expenses Challenges • Further improve ROE, expand competitive product lineup. Establish a resilient business model to withstand market fluctuation( ) • Utilize assets effectively with discipline( ) Steady progress in improving both earning power & efficiency • Market uncertainty (e.g. trends in U.S. trade policy, rising geopolitical risks) could impact deal flow • Our revenue growth rate is higher compared to our benchmark banks. Some global peers increase loan balances while maintaining higher profitability *1 Estimated figures with individual adjustments for large credit costs, interest income, and RWA included in FY23 and FY24, respectively. YoY comparison in Net profits and ROE before the adjustments; +¥299.4bn, FY23 1.5% and FY24 13.5% *2 Loan income＋deposit income *3 Fee + FX + derivatives + securities business profits, etc. *4 The level assuming no significant changes from the expectation in the business environment *5 Balance Sheet Optimization *6 Outlook as of Apr 25 Balance top-line growth and further pursuit of profitability • Continued imposition of tariffs could potentially lower the real GDP growth rate by 2% in US *6 • Investment based on actual demand, including infrastructure, remains stable 1 1 2 1 ２ ：Expense Ratio result Numerator factor Denominator factor Capture demand of private credit / Enhance credit management by centralizing middle- market expertise Strengthen both interest and non- interest income through PJ Evolution *2 *3 Net profits (after adjusted individual factors*1) +¥29.0bn Approx. 9.0%*4 resultExpensesInterest income income Non-interest Credit costs /others RWA result Numerator factor Denominator factor *2 *3 FY26ExpensesInterest income income Non-interest Credit costs /others RWA
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41 R&D CWM JCIB GCB AM/IS GCIB GM 0 100 200 300 400 500 0.9% 1.1% 1.3% 1.5% 1.7% 1.9% 18 19 20 21 22 23 24 25 26 20.0 22.0 24.0 26.0 28.0 (2.0)% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 18 19 20 21 22 23 24 25 26 GCIB’s journey to date and future outlook Historical trends in ROE and RWA*1 Historical trends in lending spread and NOP*1 (¥tn) (¥bn) 7.5% Steadily achieve double-digit ROE Credit costs increased due to the COVID-19 pandemic 1.12% 345.9 1.62% vs FY18 +50bps (FY) (FY) RWA (rhs)*2ROE (lhs)*2 NOP (rhs)Lending spread (lhs)*2 Acquisition of DVB’s Aviation Finance Lending Business Sale of MUFG Union Bank FY18 MTBP FY21 MTBP FY24 MTBP1 2 3 FY18 MTBP Increased RWA due to the COVID-19 pandemic depressed ROE 1 Started reducing low-profitability assets and improving lending spread. Non-JPY liquidity stabilized Achieve- ments Challen- ges Balancing asset control and profitability improvement FY21 MTBP Grew ROE and NOP through recycling RWA to higher profitability assets 2 Achieve- ments Challen- ges Steadily progressed in BSO and increased fee income by growth in cross-selling Achieving double-digit ROE with only existing measures FY24 MTBP3 Launched “PJ Evolution” for further ROE improvement and stable profit growth Evolve Core Business Allocate resources to our leading debt products Global Operation Enhance the profitability of our platform Approx. 0% Reduce of low-profitability assets Replace to high-profitability assets Evolve core business and platform vs FY18 Approx. 2.7x *1 Managerial accounting basis. Previous years‘ figures are estimated values based on the FY24 managerial account basis. From FY25 onwards, the figures are based on the FY25 managerial account basis *2 Estimated figures with individual adjustments for large credit costs, interest income, and RWA included in FY23 and FY24, respectively. The ROE before the adjustments; FY23 1.5% and FY24 13.5%
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42 R&D CWM JCIB GCB AM/IS GCIB GM Evolve core business Enhance earning power through collaboration Expand globally competitive product lineup Aim for swift decision-making and agile resource allocation. Capture flow-type business including FX and derivatives in a volatile market Reinforce Bank/Securities integrated platform*1 Bank Securities Increase high ROE deals by leveraging JV Key initiative Global Structured Solutions (GSS) GCIB GM Steady development of collaboration, including enhanced joint venture (LMJV) in the Americas, APAC joint-marketing, and JPY bond marketing Global alliance strategy GCIB Morgan Stanley GCIB Credit Strengthen securitization businessas the 3rd pillar Revamp global securitization business strategy Aviation finance*2 Securitization*4 Global No.2 Project finance*3 Global No.1 Global ABCP conduit No.5 ABS No.8 “Leading Global Debt House” Mitigating market impact by capturing deals based on actual demand Progress of the current MTBP *1 Plan to convert overseas securities into the Bank subsidiary from 1st Oct 25 *2 (Source) Complied the aviation ABS data from Finsight and calculated on a calendar year basis *3 (Source) PFI *4 (Source) Compiled ABCP conduit data from Moody’s and the U.S. ABS data from Dealogic. Calculated on a calendar year basis Enhance the global management platform Enhance the human capital base Pursuit of best talent mix regardless of nationality Center of Excellence Streamlining and standardizing global operations TransitionDigital infrastructure Significant increase in both Origination and Distribution activities for high-profitability deals Steadily achieve double-digit ROE PJ Evolution Capture the major global trends from a leading position Key initiative Key initiative
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43 R&D CWM JCIB GCB AM/IS GCIB GM Build capability for capturing the major global trends ▶ Increase lead left deals Participate in infra- investment PJs as Lead Left Capability to participate in higher tiers of ABS issues (securitization backed by lease receivables) Strong relationships and customer base Sector expertise Advanced structuring Detailed monitoring system FY23 FY24 FY26 Plan 7.8% 8.2% Evolve Core Business (Allocate resources to our leading debt products) Revamp global securitization business strategy Enhance solution capabilities Strategic Objective – Create synergy between PF and Securitization Synergy from collaboration GCIB-GM ROE*2 Increase Global Structured Solutions (GSS) deals Design/offer tailor-made debt solutions matching the various needs/risks of each customer, realize high ROE Significant increase in O&D activities for high-profitability deals Institutional investors (AM / Sponsor) Investment management Fund No.1 Reflect pricing expertise GCIB GM pitch deal design Credit assess- ment monitor Monitoring with reflecting market value Invest SPC Tenant Issue vehicle Proceeds from issuance ABS investors ABS issuance feesInvest Lease agreement Lease receivables PF loan 1 2 1 2 Identified individual focus assets based on regional features with credit division Digital infrastructure Incorporate market risk GSS ROE 24年度実績 36% GSS ROE FY24 result*1 GSS ROE 24年度実績 Securitization ROE FY24 result*1 42% PJ Evolution – profit growth & double-digit ROE Evolution from the traditional O&D model Point 3 （O&D volume） (profitability) Point 1 Point 2 Traditional O&D Less dependence on interest income. Accelerate velocity of high-margin deals Incorporate in employees’ evaluation framework Visualization of sales activities Big data analysis of all deals Coverage mind shift Embed into GCIB’s DNA as achieved in BSO Structure for supporting evolved business model ROE FY24 7.5% Approx. 1.5x O&D volume Established multiple collaboration agreements with financial partners aimed at enhancing distribution channels ▶ Divert from sub-scale O&D Promote asset turnover Increase investor demand Virtuous cycle of increasing fee income *1 Managerial accounting basis *2 Estimated figures with individual adjustments for large credit costs, interest income, and RWA included in FY23 and FY24, respectively. Approx. 2x Fee income ROE Steadily double-digit Origination of high - margin deals
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44 R&D CWM JCIB GCB AM/IS GCIB GM MUFG Global Service（MGS） Centralizing operations in India • Strengthen the platform to support expanded operations through business model evolution • Pursuit of best talent mix regardless of nationality Enhance the global management platform Enhance the human capital base to support global operations Information centralization & accumulation Merit of scale Talent development Process improvement based on centralized information. Standardization of procedures across regions. Implementation of a global unified system Centralization Standardization Centralization / Streamlining & standardizing global operations Support business model improvements as represented by PJ Evolution through strengthening the platform, optimizing and enhancing the human capital allocation Centralize credit operations to reduce tasks Americas EMEAAsia / Oceania Operations scattered globally Expanding the scope to include data management and KYC operations that contribute to risk management Promote Local Staff to functional head positions Finance Data management Precedent cases • Transfer / promotion across regions / entities • Long-term assignment in Japan Develop management candidates Engagement Enhance coverage capabilities Development with mid-to long term perspective regardless of LS / HS. Promote global optimal human capital allocation to enhance business platform FI deals: Centralization completed Corporate deals: Centralization completed for deals in Americas and EMEA Structured finance deals: Pilot case in progress Work equivalent to Approx. 100 analysts Centralized workload vs FY23 Approx. 2x • Female MD development program • GCIB unique overseas training programs • Global training in Japan • Strengthen credit evaluation skills / O&D training • Dispatch Home Staff to overseas branches / regional planning positions
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45 Global Markets Business Group Hiroyuki Seki, Group Head
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46 R&D CWM JCIB GCB AM/IS GCIB GM FY24 review and future outlook Changes in FY24 ROE Future changes in ROE *1 Excluding the downward impact on ROE resulting from the planned sale of bonds with unrealized losses, considering the overall financial situation *2 The level assuming no significant changes from the expectation in the business environment *3 Sales & Trading *4 Unrealized gains (losses) reflected hedging position was +¥100bn as of end Mar 25 External environment and achievements/challenges 3.0% Expense/ Economic capital FY24 result*1 Treasury/ New investment business FY26Sales & Trading AchievementsChallenges Strengthened integrated operation across business groups/entities Increase in foreign exchange transaction volume due to Morgan Stanley collaboration Ensuring access to Japan's electricity futures and spot markets Substantial elimination of unrealized losses in the foreign bond portfolio Developed measures to realize “making Japan a leading asset management center” Sales & Trading Treasury, etc. Enhance JPY interest rate business Enhance balance sheet operation to prepare for further JPY interest rate hikes External environment Competitive environment Policy rate is rising in Japan, staying high in the U.S., and cut by other central banks Concerns over medium- to long-term interest rate hikes due to financial expansion, etc. Geopolitical risk, etc. S&T Overseas Japan FX・Fixed income: FX・Derivatives: / JPY bonds: Significant reduction in unrealized losses for foreign bonds portfolio:Treasury Expense/ Economic capital FY23 result Treasury/ New investment business FY24 result*1 Sales & Trading 0.5% (0.2%) +3.0% (0.3%) 3.0% *4 *3 Approx. 7.5%*2
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47 R&D CWM JCIB GCB AM/IS GCIB GM Approx. 330 Progress of major strategies and future plans *1 Excluding the downward impact on NOP (FY24: approx. ¥(780)bn) resulting from the planned sale of bonds with unrealized losses, considering the overall financial situation *2 Breakdown of the other (vs FY23): Treasury / New investment business (+¥126.9bn), S&T outside of the key strategies (¥(5)bn), Expenses (¥(9.1)bn) Progress in FY24 Profit contribution of each strategy (NOP, ¥bn) FY23 Result FY24 Result FY26Others Others (8.8) +0.0+4.5 +0.0 +112.8 25.1 133.6 *2 Faced challengesin the JPY (interest rate) business due to the lack of progress in product expansion,etc. Further expand the business based on the strong start in key strategies vs FY24 Approx. +40 vs FY23 (4.3) Key strategies Key strategies Pursuit of optimal MUFG overall Morgan Stanley collaboration Enhance JPY business Enhance Asia business Contribute to making Japan a leading AM center Challenges in new business and new areas Accelerate DX System architecture reconstruction A B C D F E G １ 2 3 3 4 5 41 7 Key strategies S&T A B C D A B C D *1 C Faced challenges in the JPY (interest rate) business in FY24, but other major strategies have steadily progressed. Continue to aim for profit growth towards FY26. ：Boldly take on challenges in solving social issues and new frontiers ：Invest resources into “areas where we can win” ：Move away from closed business development ：Pursuit optimization of overall MUFG across business groups and entities ：Productivity improvement / Speed up through the utilizing new technologies １. Connect customers and markets to provide the best solutions ２. Create new value through self-transformation and contribute to solving social issues ３. Pursue the unique value of MUFG by refining the expertise in markets business "Lead the transformation" of MUFG for Further Growth Vision Solving social issues Selection & focus De-self-reliance MUFG-based optimization Strengthen the competitiveness １ 2 3 4 5 New area / Treasury
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48 R&D CWM JCIB GCB AM/IS GCIB GM Sales & Trading Business MUFG optimization (with GCIB, etc.) Enhance JPY business Morgan Stanley collaboration Enhance Asia business FY24: ¥141.9bn *1 (FY24⇒26:+¥20bn) FY24: ¥76.2bn *1 (FY24⇒26: +¥20bn) Selection & focus3MUFG optimization１ Synergy +¥10bn~ FY24: ¥117.7bn *1 (FY24⇒26: +¥10bn)B D CA The preparation of structures is steadily progressing. Moving to a phase of achieving further business expansion *1 (FY24⇒26: +¥40.0bn)FY24: ¥512.2bn *２ Enhance support for branch offices/ Promote knowledge and expertise study Key initiativesFY24 FY25 and onwards Strengthen cross-selling Strengthen value chains (Structuring/DCM*4) Enhance integrated platform Key initiatives Expand the customer business including the creation of new business by leveraging the strong presence of Asian entities Deepen business collaboration among on-offshore entities Expand currencies and products onshore Key initiatives Reinforce Bank/Securities integrated platform*3 Rapid decision- making/Agile resource allocation Established GCIB x GM JV (Apr-24) Establish transaction platforms with private equity funds and deepen customer strategies FY24 FY25 and onwards Additional deployment of interest rate sales Develop RMs*5 capable of offering advanced JPY interest rate solutions FY24 FY25 and onwards Release derivative products (e.g. NDF*6 of INR and IDR*7) Carefully select key products (strengthen domestic and overseas collaboration) Integration and standardization of business process (front and back office areas) Activate information sharing among on-offshore entities Integrated taking-in project discovery ad regular flow Increase high ROE deals (Tailor-made product offerings, etc.) Bank × Securities GCIB × GM Strengthen and enhance the business operation foundation A Increase activity levels and deals De-self-reliance2Enhance capability to offer high value-added services and achieve further synergy effects FX Trading business Japanese equity business for institutional investor Key initiatives FY24 FY25 and onwards Utilize MS platform in Japan (increase in transaction volume) Expand target products and functions (increase in transaction volume & revenue) Expand collaboration areas Currently exploring additional collaboration opportunities such as commodities Expand into transactions at overseas entities Start operations under new structure *1 FY24 results of S&T area (Gross profits before allocating among business groups, managerial accounts). ¥512.2bn≠Total of A to D (duplication and figures other than A to D are included) *2 vs FY24. Increase to FY26 *3 Plan to convert overseas securities into the Bank subsidiary from 1st Oct 25 *4 Debt Capital Markets *5 Relationship Manager *6 Non-Deliverable Forward *7 Indian Rupee, Indonesian Rupiah The diversification of businesses beyond JGB is still in progress. Aim to return to a growth trajectory through strengtheningthe structureand expandingproductofferings *２ *2 *2 Strengthen relationships with clients (Increase interaction time/ frequency with clients) Expand the number of covered stocks Enhance sales structure /derivatives Strengthen collaboration between domestic and overseas securities Enhance resource Increase activity levels Expand overseas customer transactions leveraging the strengths of JPY products Selection & focus3 Initiated organizational restructuring and recruiting (diversification is in progress)
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49 R&D CWM JCIB GCB AM/IS GCIB GM -13 50 -8 50 -3 50 1 50 6 50 11 50 16 50 21 50 26 50 23/3 24/3 25/3 26/3 27/3 [JPY BS] as of 25/3, Non-consolidated (¥tn) Loans 70 (YoY +5) Investment securities 47 ((3)) BOJ current account balances 90 (0) Deposit 175 (＋6) Market funding, etc. 38 (+3) OthersOthers Core deposit Challenges and key initiatives Enhance JPY/Non-JPY BS management (Response to JPY interest hikes) Enhance market risk management (1/2) Enhance market risk management (2/2) Enter a phase where domestic and overseas financial policy directions diverge JPY interest rate hikes Business environment Geopolitical risk Enhance JPY/Non-JPY BS management (including liquidity and capital funding management) Enhance market risk management Key initiatives Liquidity risk • Asset allocation in response to the direction of financial p olicies of various countries • Flexible position management Timely and appropriate risk-taking • Benefit from the positive impact on interest income via e limination of unrealized losses in the foreign bond portfolio, etc.Secure returns Income gains/losses Total gross profit Capital gains/losses Current status of unrealized gains/losses • AFS*3 account (including equities) maintains unrealized gains • Unrealized losses in foreign bond portfolio have turned to u nrealized gains as actual Fiscal expansion risk Mostly liquid deposits Paying attention to the balance trends [floating rate lending] Secure net interest income [fixed rate lending] Improve re-pricing yields Appropriate risk management Improve reinvestment yield (Avoid capital erosion) Secure interest income (deposit rate) (4.0) (3.0) (2.0) (1.0) 0.0 1.0 2.0 3.0 4.0 22/9 23/3 23/9 24/3 24/9 25/3 Trends in AFS unrealized gains/losses (¥tn) Domestic equities Domestic bonds Foreign bonds Other Total AFS ¥2.2tn Total unrealized gains Treasury operations Methods to control unrealized gains/losses • Active utilization of hedging to ols (such as bear type funds) • Utilization of the Held-To-M aturities account Foreign bonds unrealized gains/losses (reflected hedging positions) (1.0) (0.7) (0.8) (0.5) (0.5) 23/3 24/3 25/3 26/3 27/3 （¥bn/BPV）(5)-(10) (image) 0 Long Short Capital management risk Early issuance of capital instruments (AT1, Tier 2, TLAC bonds) [Non-JPY BS] Implement “early, long-term and robust” funding management based on uncertain business environment *1 (FY24⇒26: +¥210.0bn)*2FY24: ¥78.1bn (vs FY24 Plan: +¥0.9bn, YoY: +¥126.9bn) +0.1 [Non-consolidated] Risk volume (JPY+Non-JPY) 10y JGB yield 23/3 24/3 25/3 26/3 27/3 *4 *4 200.0 100.0 0 (100.0) (¥bn) (200.0) *1 *1 FY24 gross profits (Exclude the downward impact (FY24: approx. ¥(780)bn) resulting from the planned sale of bonds with unrealized losses, considerin g the overall financial situation *2 vs FY24. Increase to FY26 *3 Available-For-Sales *4 Estimated value based on planned positions under the assumption that interest rates will follow our scenario
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50 R&D CWM JCIB GCB AM/IS GCIB GM Initiatives in new business area *1 TOCOM: The Tokyo Commodity Exchange, Inc. *2 eClear Corporation：Holds the qualification for power spot trading that requires registration with the Ministry of Economy, Trade and Industry. *3 Mitsubishi UFJ Asset Management Co., Ltd. *4 Mitsubishi UFJ Real Estate Asset Management Co., Ltd. *5 MUFG Morgan Stanley Credit Solutions Co., Ltd. *6 Global markets course / Financial engineering course Challenges in new business and new areas Accelerate DX/System architecture reconstruction Contribute to making Japan a leading AM center Management prioritizing human capital Development of Japan’s private market (e.g. Mezzanine debt) Strengthen asset management capabilities and establish a framework to offer products to investors Credits (e.g. CLO) Key initiatives Consideration of entry into the equities MUFG optimization１ Solving social issues4 Enhance competitiveness5 Technology/data-driven management etc.AI marketing/trading Development of Treasury MIS Transformation through DX Business support Speed-up Improve productivity Power future trade Power spot trade Key initiatives FY24 FY25 and onwards Entered into TOCOM’s*1 futures market Commenced power futures trade execution and clearing services (Oct-24) Expand domestic and overseas customer base Enhance product offerings Alternatives (e.g. Real estates) E F G Investment in eClear Corporation*2, a company holding a spot trading license (Sep-24) Ensuring access to both markets Promote matching between spot and futures Improve liquidity in both markets Build an agile, flexible, and efficient business platform Transformation of market system development and operational framework Advancestructuraltransformationof the markettechnology platform to lead business creation and transformation throughtechnologyand data-driveninitiatives Established "Market IT strategy team“ across entities, business groups and regions Establish a foundation for the electricity business. Contribute to the development of Japan's electricity market and the stabilization of power supply • Strengthen course-specific*6 recruitment of new graduates (bank and securities integrated) • Actively promote career recruitment (focus on quants, IT, S&T, and administrative areas) Recruit Training • Activate HRs exchange among business entities (Bank, Trust bank, domestic and overseas Securities, MUAM, etc.） • Enhance business skills （Practical English skills program, Certification for digital and IT utilization, etc.) • Enhance human skills (Mentoring, Coaching, etc.) • Cultivation of market operations expertise through the appointment of external specialists, regular lectures, etc. Com- pensation • Improve compensation for specialists (S&T, quants, IT, regulations, etc.) : Additional initiatives FY24 FY25 and onwards Partial transfer of investment functions. Commenced advisory services by MUAM*3 Consider expansion into discretionary investment management and other services Completed the transfer of certain assets to MUREAM*4 Origination of new private real estate funds Expansion of investments Establishment and commencement of operations of a lending subsidiary*5 (May-25) Increase origination delas Expand investor base Structural reform of the platform Solving social issues4
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51 Disclaimer 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, Integrated 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 Japanese GAAP (which includes Japanese managerial accounting standards), unless otherwise stated. Japanese GAAP and U.S. GAAP, differ in certain important respects. You should consult your own professional advisers for a more complete understanding of the differences between U.S. GAAP and Japanese GAAP and the generally accepted accounting principles of other jurisdictions and how those differences might affect the financial information contained in this document. This document is being released by MUFG outside of the United States and is not targeted at persons located in the United States. Consolidated： Mitsubishi UFJ Financial Group (consolidated) Non-consolidated： Simple sum of MUFG Bank (non-consolidated) and Mitsubishi UFJ Trust & Banking Corporation (non-consolidated) the Bank (consolidated)： MUFG Bank (consolidated) MUFG: Mitsubishi UFJ Financial Group the Bank (BK): MUFG Bank the Trust Bank (TB): Mitsubishi UFJ Trust & Banking Corporation the Securities HD (SCHD): Mitsubishi UFJ Securities Holdings MUMSS: Mitsubishi UFJ Morgan Stanley Securities MSMS: Morgan Stanley MUFG Securities MS: Morgan Stanley NICOS: Mitsubishi UFJ NICOS KS: Bank of Ayudhya (Krungsri) Bank Danamon (BDI): Bank Danamon Indonesia FSI: First Sentier Investors MTBP Medium-term business plan R&D: Retail & Digital CWM: Commercial Banking & Wealth Management JCIB: Japanese Corporate & Investment Banking GCB: Global Commercial Banking AM/IS: Asset Management & Investor Services GCIB: Global Corporate & Investment Banking GM: Global Markets Definitions of figures used in this document All figures are on a managerial accounting basis. Unless otherwise noted, foreign exchange rates are based on assumed rates determined for internal managerial accounting purposes. • ROE： Calculated based on Risk Assets (R&D, CWM, JCIB, GCB and GCIB) or economic capital (AM/IS and GM) • RWA: The finalized and fully implemented Basel III basis. Managerial accounting basis. (Estimated figure)