MUFG Investors Day 2021 - Mitsubishi UFJ Financial Group, Inc - July, 2021

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MUFG Investors Day 2021 - Mitsubishi UFJ Financial Group, Inc - July, 2021
MUFG Investors Day 2021

           July, 2021

Mitsubishi UFJ Financial Group, Inc.
MUFG Investors Day 2021 - Mitsubishi UFJ Financial Group, Inc - July, 2021
Contents

 Retail & Commercial Banking (R&C)                 3

 Digital Service (DS)                             10

 Japanese Corporate & Investment Banking (JCIB)   16

 Global Commercial Banking (GCB)                  22

 Global Corporate & Investment Banking (GCIB)     29

 Global Markets                                   35

 Asset Management & Investor Services (AM/IS)     42

 Appendix                                         48

                                                       2
MUFG Investors Day 2021 - Mitsubishi UFJ Financial Group, Inc - July, 2021
Retail & Commercial Banking Business Group
Atsushi Miyata, Group Head

                                             3
MUFG Investors Day 2021 - Mitsubishi UFJ Financial Group, Inc - July, 2021
R&C                          DS                        JCIB                 GCB                    GCIB              Global Markets           AM/IS

 Review of the previous medium-term business plan
  Results                                                                                      Achievements and challenges

                                      FY17                FY20            Changes                      Accelerated cost structure reforms
                                                                                              Achieve- -Reduce expense by ¥90bn, or ¥110bn in gross, centered on
                                                                                                       optimization of branches and personnel
 Net operating                                                                                ments
                                      343.3               258.3            (85.0)                      Deepened cooperation between BK, TB and MUMSS
 profits (¥bn)
                                                                                                         Improve top line (strengthen profitability & profit structure)
                                                                                                         -Asset management: Shift to advisory business model
 Expense ratio                         79%                    82%          +3ppt                           / Enhance shift from deposit to investment
                                                                                               Chal-     -Corporate solutions: Medium- to long-term & fundamental
                                                                                               lenges     issues / Enhance high-quality lending
                                                                                                         Leverage digitalization to improve productivity
 ROE                                     9%                   5%           (4ppt)                        -Reduce cost further and establish non face-to-face business
                                                                                                          model

   Changes in net operating profits                                                            Business environment
(¥bn)                Decreases in asset management income and                                                                                     Aging population
                   negative effects of lower interest rates & COVID-                                             Digital shift
                                                                                                                                                   & low birthrate
343.3                 19 were not offset by expense reductions.
                                                                                              • Establishment of DS Business Group to             • The era of the 100-
                                                                                                promote DX*2 by thoroughly dealing with             year life
                                                                                                mass-market segments
                                                                                                                                                  • Increasing need for
                                                                                              Main customers      TB   MUMSS   BK NICOS ACOM        asset formation
                                                              258.3                            Domestic retail                                    • Shortage of successors
                                                                                               and corporates                    DS Business
                                                                                                (mass-market
                                                                                                  segment)
                                                                                                                  R&C                 Group
                                                                                               Domestic retail    Business
                                                                                               and corporates     Group                             Approach issues
                                                                                                                                                   relating to “value”
  FY17        AM   *1
                        JPY loans      Card &      Expenses    FY20            FY20
                                                                                               (Ref.)FY20*3              R&C           DS                  and
                                                                                              NOP(¥bn)                    65.0        175.0
  results               & deposits,    Foreign                results         targets                                                               customer asset
                           etc.       settlement                                              Expense ratio               88%          77%
                                                                                              ROE                        1.5%         2.5%
*1 Asset management (incl. investment product sales) *2 Digital Transformation
*3 Figures based on the new MTBP basis. The calculation method of RWA, etc. were changed.                                                                                 4
R&C                      DS                JCIB               GCB                    GCIB                  Global Markets                    AM/IS

 Overview of the new medium-term business plan
  Basic policy                                                              Financial targets

                  • Help to enrich people‘s lives, support and                                                   FY23 targets                       vs FY20
                    drive the growth and development of business
                                                                           Net operating
   Vision           partners, and by extension, the continued                                                                   140.0                   +75.0
                    prosperity of the Japanese economy                     profits(¥bn)
                  • Challenger for delivering value-added services
                    from a new perspective                                 Expense ratio                                          77%                (11ppt)

                                                                           ROE                                                     5%               +3.5ppt
                           Key strategies
                                                                           RWA(¥tn)                                               16.6
Strengthen             1 Expand retail value chain business
profitability
                         Unified promotion of corporates×WM*1               Path to achieve ROE target
-Business resilience   2 solution
                                                                                                     Net profits+¥60bn
Digital shift          3 WM digital platform
                                                                                                                                                               5%
                         Rebuild sales networks and
Cost reduction         4 optimization of personnel                          1       Retail value chain

                                  KPIs
(¥bn)                                              FY20→FY23
Net operating profits in WM                               +41.0                                                                    WM profits
                                                                                            Cross transactions
                                                                           1.5%
  Gross profits in cross transactions                     +31.0
  Gross profits in AM                                     +17.0                      2 Corporates×WM
                                                                                           solution
Base expenses                                             (24.0)            FY20       AM     Inheri-      Solution・ Domestic Deposits / Expenses    Credit    FY23
                                                                           result              tance・      M&A,etc.    and    Loans,etc.             costs・    target
                                                                                             real estate              foreign                       RWA,etc.

*1 Wealth management                                                                                               settlement /                                         5
                                                                                                                     FX,etc.
R&C                     DS                             JCIB                  GCB                    GCIB                 Global Markets               AM/IS

     Strategy concept
       Market opportunity                                                                                MUFG total asset-base sales model
    • Consulting on personal profiling assets of ¥100tn                                                  • Focusing on total assets of customers, approach
      (potential for all high net-worth individuals/¥130tn in FY23)                                        fundamental issues such as capital strategy,
    • Capital value of ¥150tn held by corporate owners                                                     succession, real estate, asset management needs, etc.
                                                                                                         • Pursuing value chain businesses by leveraging our
                                              1 Retail value chain                                         Group capability. Expand cross transactions
             R&C client base        AM advisory                        Personal real estate business                                                Alliance
                                  business model                        based on inheritance needs                                     Affiliates   partner
                         WM
                High-End
                                                             Others                                                                           BK
                                                             ¥10tn
             (over ¥2bn*1)                                                                                                             Deposits・Loans
                                  Potential     Amount of profiling              Potential                                                 Solution
               Semi-
                                                     ¥100tn Real                                                                                                           Morgan
Retail

            High-End                       Financial  200thd                                                                                   AM                          Stanley
            (¥0.3-2bn)                        asset      individuals    estate
                                              ¥45tn                     ¥30tn
                     Affluent                           Treasury                                                                          Profiling                       Primary
                 (¥0.1-0.3bn)                             stock
                      1.6mm
                                                         ¥15tn                                                                  Strengthen total           market
                                                                                                                 Affiliates                       Affiliates
                    individuals
                                                                                                         Alliance               asset-base sales             Alliance
                                                                          Non-listed                     partner         TB                     MUMSS partner
                                       Listed           ¥150tn          clients in need of                         Real estate                                      AM
                         Listed                                        business succession
                                                          60thd
                                                        companies
                                                                                                               Stock transfer agency                       Investment advice
Corporate

                                       Market            Market              Total                             Testamentary trust                              Equity solution
                                       capitali-      capitalization       net assets
                                        zation                                                                                                             M&A /IPO / PO / Debt
                  Non-listed
                                                       of owners            ¥130tn
                                       ¥120tn                                                                                                                                     Learning
                                                         ¥20tn                                                                                                                   know-hows
                                                                                                                                                                                  from MS
                                         Approach to management issues
                      200thd                   focusing on capital                                             3   Digital shift(WM digital platform, etc.)
                    companies

                                     2 Corporates × WM solution                                               4       Cost reduction(Rebuild sales networks,
                                                                                                                         optimization of personnel, etc.)
*1 Identified asset criteria (with separate criteria according to the amount of financial assets held)                                                                                 6
R&C                                 DS                                   JCIB                        GCB                            GCIB                              Global Markets                         AM/IS

  Key strategies (1) Expand retail value chain business
      Advisory business model of asset management                                                                          Retail real estate business based on inheritance needs
  •    Enhance stable source of profit by increasing stock balance of                                                  •    Upward trend of gross profits from entruster of testamentary
       investment assets                                                                                                    trust through implementing total asset-base sales
  •    Further expand retail customer referrals (collaboration with                                                    •    Expand gross profits from retail real estate business by
       MUMSS)                                                                                                               leveraging value-chain arising from inheritance needs
∎ AM from retail customers              BK     TB    MUMSS   ∎ Retail customer referrals*2          BK   MUMSS         ∎ Revenue model of testamentary trust                               ∎ Executional entrusted testamentary trust
         Stock balance (\tn)*1                                        Gross profit (\bn)                                        Entruster of testamentary trust                                                                             BK    TB
                                                                      No. of account dealed (thd)                               of which, customer for total asset-base sales
         Balance of investment assets (\tn)                                                                                                                                                            Balance of entrusted amount (\tn)
                                              28.3                                                                                                                                                                                         48.6
                                                                                                                                                                                                       No. entruted cases (thd)
                                 25.6                                                       32
      24.2                                                                                                                                    Further
                  22.5                                                         25                                                            expansion
                                                                20                                                                                                                                                       38.9
        Increasing                                                                                       +12                         Current implementation                                                  37.5
      ratio of stock
                                                                                                                                                                                                36.0
                                                                                                                                           ratio: 20%
         balance
                                              9.0                                                        55                                                                                                                                12.2
                                 6.5                                                          43                                               Double
      6.3         5.4                                                           33                                                          revenue effect                                                                 10.0
                                                                     30                                                                                                                         8.8           9.3
                                                                                                                       Before Draw   2Y    3Y   4Y   5Y     6Y      7Y    Exec-   9Y

      FY18       FY19            FY20         FY23              FY18          FY19          FY20         FY23                 up                                          ution
                                                                                                                                                                                                FY18          FY19         FY20            FY23

∎ Policies for future initiatives                                                                                      ∎ Real estate business                BK          TB            ∎ Policies for future initiatives
 •     Rebuild asset management business through establishing an                                                                 Gross profits from retails (\bn)                      •     Strengthen to find potential deals
       advisory business model                                                                                                                                            12.9               from customer base of BK
                                                                                                                                 Gross profits from corporates (\bn)
                                                                                                                                                                                        BK
                           Asset management advice chain                                            Reinforcing
                                                                                                                                 No. of effective information sharing
                                                                                                                                                                                                 Strengthen origination
                                                                                                    each engine
                                                                                                                                 for WM real estate (thd)                                  • Enhance capabilities to find needs
                                  Investment                     Product                      Sales
       Research                                                                                                                                        7.8                    +12          • Support owners’ preparation for inheritance
                                    strategy                     strategy                   strategy
                                                                                                                                                                                       Improve knowledge / skills of person in charge
                                                                                                                                          6.3
 Learning            Enhance                   BK     TB     MUMSS
                                                                  Strengthen core portfolio services
know-hows                                                                                                                                                                                  Increase quality
                   House View*3                                 ( BK funds that refer to House View)                       4.9                                                20               of deals
 from MS
                       GMAP*4                                                Highly selected
                                                                                                                                           14             13
                                                                                                                                                                                           TB
                                                                                                                                                                                                 Strengthen execution
                                                                             product line-up                               14
                                                                                                                                                                              20           • Improve accuracy of real estate information
                                                                                                                           16              18             15
                                                                                                                                                                                           • Active support for deals under consultation
 Expand AM base from cross                                                                                                                                                                  Establish real estate dept. at TB’s branch
                                                                          WM digital platform                              FY18           FY19          FY20               FY23
        transactions                                                                                                                                                                       Increase volume
                                                                                                                                                                                               of deals
 *1 Products that generate profits in accordance with balance / period, such as investment trusts, fund wraps, and investment advice
 *2 MUMSS on a basis after the merger with Mitsubishi UFJ Morgan Stanley PB Securities Co., Ltd.
 *3 MUFG Wealth Management’s official position with regard to market outlook and investment trends *4 Global Macro & Asset allocation Perspectives                                                                                                 7
R&C                             DS                     JCIB                       GCB                           GCIB                    Global Markets                    AM/IS

   Key strategies (2) Unified promotion of corporates × WM solution
   Approach to management issues focusing on capital                                                   Policies for future initiatives
  • Targeting on “corporate value” and “owner assets”                                              • Thoroughly pursuing synergies from corporate and
  • Business succession projects have been successful by                                             owner cross-relation and a group-wide approach under
    intensive approach to owners in need of succession                                               the enhancement of structure
    solutions                                                                                     ∎ Relation matrix of corporate and owner
                                                                                                      High
                 Corporate                           Corporate owner                                                 Ⅲ   Begin from WM                             Corporate & WM Ⅳ

                                                                                                      Relationship
                                                                                                       with owner
                    B/S                                    B/S                                                              Develop                               Maximize synergies
           Assets              Liabilities         Assets            Liabilities                                       Inactive customers                       Begin from corporate
           Financial
                                 Loans
                                                   Financial
                                                                        Loans
                                                                                                                     I      Approach                                  Develop       Ⅱ
            assets                                  assets
                                                                                                      Low                  Relationship with corporate                                          High
          Real estate                             Real estate
                                Equity                                 Equity                          • Collaborate with BK to approach customers who have                                  BK    TB   MUMSS

                                                   Treasury                                              relationship with TB or MUMSS
                               Net assets           Stocks
                                                                                                       • Leverage TB’s function of corporate agency, and                                     BK    TB
                                                                                                         IR/SR relationship
∎ Business / asset succession                  ∎ Gross profits of BK            TB MUMSS
                                                                                                       • Establish a strategic proposal organization to                                      BK
                                       BK TB     cross transactions
(¥bn)                                                                                                    strengthen capital business with inactive customers
           Amount of entrusted testamentary     (¥bn)          Solution, M&A
           trust from owner family                             Real estate                        ∎ Strengthen the promotion structure
           Amount of LBOs related to                           Inheritance
           business succession*1                               Others                              • Improve the promotion structure gradually toward
           Amount of loans related to                                           100
           business succession                                                                       unified promotion of corporates × WM solution
                                  ¥1.2tn                                                                 WM FY22from
                                                                                                                                            Corporate
                                                          70          70        +20              BK
                                                                                                            WM-specialized                                                BK
                                                                                                                                                                               Corporate banking
                                                64                                                         front organization             Unified promotion of                        div.
                                                                                                                                        corporate × WM solution
                 220                                                            75           MUMSS    WM headquarters                                                     BK      Branches
   70                             200                                                                                       FY20
                                         620              53          55                                                 merged with
                                                50                                                                           PB*2
  470            480                                                                                                                         Product Office
                        410       420                                                             TB                                   BK                              MUMSS
                                                                                +10                          Real estate・                             WM
                                                                                                                                                               from
                                                                                                                                                               FY21        Asset management
        320                                                                                               testamentary trust
                                                                                                                                            Specialized organization
        FY18            FY19          FY20     FY18      FY19       FY20        FY23                     Stock transfer agency              for large-asset owners             Primary market

 *1 Amount of underwriting of LBOs related to business succession (including MBOs involved in funds)
 *2 Mitsubishi UFJ Morgan Stanley PB Securities Co., Ltd.                                                                                                                                               8
R&C                       DS                     JCIB                 GCB                    GCIB                Global Markets                   AM/IS

 Key strategies (3) Digital shift / (4) Cost structure reforms
  Digital shift(WM digital platform)                                                  Cost structure reforms
                                                                                     (¥bn)           Reduction of base expenses (24.0)
 • Achieve total asset-based portfolio proposals based on a
   goal-based approach through the use of digital platform                                                        (32.0)
                                                                                          530.2
                                    Learning
∎ WM digital platform              know-hows
                                    from MS
                                                                                                                                                       Expenses for
                                                                                                                                                     business growth,
                                                                                                                                  Expenses for cost Performance-linked
                                MUFG integrated                                                                                   structure reforms,     expenses
                                 CRM function                                                                                     deposit insurance
                                                                                                                                    premium, etc.
                                                                                                    1 Personnel
       Made progress              Holistic               Strengthen integrated
        in profiling                                      operation of MUFG                                   2 Facility
                                   View                   Change of behavior
                                                                                                                  expenses      Others

                                                          of person in charge                FY20                                                                FY23
                                       1.6mm
                Others               individuals
                                            Customer                                ∎ Forecast of no. of personnel 1
    Financial         Real                 base of R&C    TB      BK       MUMSS    (thd)                 R&C
                                       200thd                                                             Of which the Bank
      assets          estate                                                           27
                                     individuals
                                                          Persons in charge                                                                • Branch consolidation
           Treasury                    60thd                                                    21
                                     companies                                           17                                                  through promoting
             stock                                                                                                                           operational efficiency and
                                                                                                   13
                                                                                                                                             optimization of personnel
                                       200thd                                                                                                by streamlining of head
    Goal                                                        Next
                                     companies
                                                                                                                                             office organization
                         Propose portfolio based on
    Planning                goal based approach                 Best                   FY17
                                                                                      17年度           FY20
                                                                                                    20年度                      FY23
                                                                                                                             23年度
    System                                                      Action              ∎ No. of branches (the Bank non-consolidated basis) 2
                                                                                                                                               Collaboration
Proposal tool based              ④       ①                Recommendation                                    Branch specialized to features*1
                                                                                                                                                 with DS
  on total assets                                                                                           Full-fledged branch
                               Review Profiling               function              600
                                                                                                                                • Optimization of entire
                                                                                    400                                           channels
                                 ③            ②                                                           515           Approx. through sophistication of
                               Action        Plan                                   200                       425       160       on-line channel and
                                                                                                                        Approx.
                                                                                                                        160       seamless collaboration
                                                                                      0
                                                                                                                                  with physical channel
                                                                                          06年度
                                                                                           FY06          17年度
                                                                                                         FY17 FY20 列2 FY23

*1 MUFG NEXT and consulting office, etc.                                                                                                                                  9
Digital Service Business Group
 Masakazu Osawa, Group Head

                                 10
R&C                  DS                JCIB                 GCB              GCIB                 Global Markets                  AM/IS

Overview of the new medium-term business plan
Basic policy                                                           Financial targets
                                                                                                      FY23 targets                   vs FY20
Purpose      Eliminate customers’ concerns about money
                                                                      Net operating profits
                                                                                                                 205.0                    +30.0
             Become a financial / digital platform operator           (¥bn)
 Vision      which customers always can depend on,                    Expense ratio                                73%                    (4ppt)
             as a financial services expert
                                                                      ROE                                         4.5%                    +2ppt
                                                                      RWA (¥tn)                                       9.2
Business environment                    Our strength
                                                                      ∎ Roadmap to achieve ROE target
                                                                                           Net profits +¥20bn
                Expantion of               Collective
Acceleration
                the presence
 of digital                               strength of
                 of emerging                                                                                                               4.5%
   shift                               group companies                                                    Expense for
                  companies                                                                Optimization business growth,
                                                                                            of channel deposit insurance
                                                                       2.5%                  network     premium, etc.

   Shift to                         Largest                                                (DS portion)
                                                Stong brand
   digital      Innovation /       customer
                                                  (safety /
channel from    Relaxation of       base in
                                                  security)             FY20     Gross       チャネル
                                                                                                Expenseその他           Credit cost,   RWA      FY23
  physical       regulations         Japan                              result   profits    見直し効果      経費               etc.                target
  channel                                                                                   (DS分)
                                                                       Acceleration of business model reforms

                                                                                                        Other business groups and CCs
                Promote digital shift of operations (P.12)             Business Group
                                                                                                                  Support Group-wide
                                                                        specializing in
   Key         Reform digital channel business models (P.13)                                                     digital transformation
                                                                       mass segments
strategies       Strengthen the group’s      Multiple contact
                  capabilities to provide      points with                                                     Promoting function of
                                               customers                          Integration
                    financial services                                                                         digital transformation

                                                                                                                                                     11
R&C                        DS                      JCIB                      GCB                      GCIB               Global Markets                  AM/IS

  Key strategies (1) Promote digital shift of operations
                                                                                                                                Eliminate the need to ask customers to wait,
   Steady progress in digital shifts                                                              Next-gen branch: fill out paper forms or bring anything
 ∎ Digital transaction ratio in various procedures*1                                                 Reservation /                                     3 ATM etc. (tax bills etc.)
                                                                                                     Reception                                            Complete transactions
 100%          From around 40%                                  Opening of account
                                                                                                 Shorten waiting time                                  through self-service devices.
               to over 80%                                      Various procedures                                                                       Shorten processing time
   80%
                                                                 ・Change of address
   60%                                                           ・Re-registration of
                                                                                                                                                           4 TV monitor counter
                                                                  security code                                                                              etc.
   40%                                                           ・Card replacement                                                                             Remote access to
                                                                                                                                                                highly specialized
   20%                                                                                                                                                        consultation services
                    FY20                      FY23                                             2 Space for internet
                                               ∎ Ratio of money transfer via                     banking / tablet
   ∎ No. of IB*2 service users
     (mm)                                        IB*2                                           Complete transaction                               5 Bank-counter
                                                                                                   through tablet.
                                                                                               Shorten processing time                                  Free many employees
     Approx. doubled                              Approx. doubled                                                                                      from burdensome work
                     Over 7                                       63%
     in 5 years                                   in 5 years
                                                                                                  Optimization of channel network (BK entity basis)

                                                                                                      FY17                             FY20                            FY23
                                                                                                  515 branches                     425      branches              Approx. 320
          FY15               FY20                    FY15               FY20                                                                                           branches
                                                                                                                                     Branch downsized
  ∎ No. of transactions at                     ∎ No. of responses via AI                                                             /specialized*4
    bank-counter (mm)                            chatbot*3 (thd/per month)                                                           to features    5
                                                                                                    Full-fledged
     Almost halved in 5 years
                                                                         56                           branch
                                                                                                                                                                    Approx. 160
                                                                                                            515                            420
                                                                      Solution
                              14                      33                                                          Cost                                   Cost    Approx. 160
                                                                       ratio
                                                                       80%                                     reduction*5                             reduction
                                                                                                    ATM outside ¥17bn                                   ¥30bn Approx. 1,250
                                                                                                                                           1,420
                                                                                                    branches
           FY15              FY20                   20/4                21/3                            1,658
*1 Procedures completed not at the bank-counter      *2 Mitsubishi UFJ DIRECT: Internet banking for individual customers
*3 Number of cases of responding to inquiries regarding internet banking services via AI chatbot *4 MUFG NEXT and consulting office etc.
*5 Sum of cost reduction amount of personnel and facility (branches, ATMs) expenses
                                                                                                                                                                                  12
R&C                           DS                                   JCIB                   GCB                 GCIB            Global Markets            AM/IS

   Key strategies (2) Reform digital channel business models
                                                                                                          ∎ Diversify and digitize points of contact with customers through
  Strengthen capabilities to provide financial services of MUFG                                             alliance

             MUFG channel                                             External channels
                                                                                                            QR settlement              Digital                  Online
                                                                                                                                   account service             factoring
                                                                     EC       Mobile      Loyalty
                                                                   website    carrier    program             210thd AirPAY               80mm               Enhance contact
     Personal financial      Internet                                                                           account                 members             points with SME
       management            Banking
                                              Data accumulation

                                                                                                          ∎
                                                                                                          ∎ Vision of data
                                                                                                            Our vison      marketing
                                                                                                                       of data marketing
    Personalized recommendations                                  Personalized recommendations

                                                                                                                    Personalize proposals and services
            Improve UI / UX                                              Provide BaaS
                                                                                                                                                                 Sustainable
                                        API platform                                                                     Understanding of needs                   growth of
                                                                                                                          through data analysis                Life Time Value
                                                                                                                                                                of customers

                                                                                                                     Data infrastructure that enables
                                   Data marketing
       (customer information, transaction history, dynamic data, etc.)                                      the aggregation of large-scale and diversified data
                                                                                                                       (utilizing cloud computing)
     New financial services utilizing digital technology (P.14)
                                                                                                          ∎ Digitalization of MUFG’s products and services
Advanced banking service company and JV with other companies
                                             GO-                                                          (¥tn)                         FY20            YoY        FY23 plan
                      JDD       MUIP                                  RMB        Other
                                             NET
                                                                                                          Ratio of investment trust
                                                                                                          sales via online*1                72%        +13ppt            90%
      Internal collaboration within MUFG, enhancement of products                                         Ratio of electronic
                                                                                                          housing loans contract            44%        +25ppt            80%
                 TB/Securities               BK                         NICOS/ACOM                        Balance of housing loan
                                                                                                          (BK)                              12.0          (0.1)          12.2
                      Investment trust                              Credit card                           Balance of card Via online
                                                                                                          loan               100%           1.38        (0.11)           1.46
                          Housing loan                               Card loan

 *1 Based on no. of application for periodical saving of investment trust                                                                                                      13
R&C                       DS                JCIB                 GCB                   GCIB              Global Markets               AM/IS

  Group-wide digital transformation - History of Open Innovation
                                                          All business
 Open Innovation Initiatives                                 groups            Target areas for investment in open innovation
                                                                            • Current valuation is well in excess of its book value:
                                                                              to be used for new business development and opportunities
                               MUFG Innovation Partners                                                    Payment/Wealth
                                                                            Japan 6%                     management/ESG 5%                            Lending
                                                                                                                   Banking                             42%
                           Investment in companies with potential
 Framework                        to collaborate with MUFG
                                                                                                                     9%
                                                                                                               US
of supporting                                                                             Portfolio           41%        SaaS*1        Portfolio
                                                                          Israel
   startup                     Value-up through collaboration              26%           by country                       13%         by category

                             MUFG DIGITAL ACCELERATOR                                                                 Marketplace
                                                                                                       South East Asia   14%                          Blockchain
                                                                                                            27%                                          16%
                             Support companies in early-stage
                                (31 companies in 5 Years)                      Initiatives as a separate entity within MUFG group
                                                                                   Promote the business under strong leadership by
                                                                                   professionals in each field
                                  Investment record                                                     MUFG
                                                                               Japan Digital                               Global Open          Recruit
                       (Startups in Japan and abroad, funds,                                          Innovation
                                                                                  Design                                  Network Japan      MUFG Business
                             digital related subsidiaries)                                             Partners
Collaboration
via alliance /              Over 40                        Appraised
 investment                companies                         value
                                             Investment
                           Over ¥120bn         amount

                                Development of services
                                                                                                      Nobutaka                Shinji              Eiji
                                through open innovation                        Yuko Kawai
Embedding                                                                                              Suzuki               Tokunaga            Natsume
                           Technologies                                    Develop solutions           Strategic            Blockchain           Payment
 solutions                 and solutions       Embedded more             utilizing AI technology      investment             platform             service
into MUFG                   of alliance        than 10 services                                    creating synergy
products /                 partners and       in MUFG services               Developing AI           Invest ¥12.5bn       Launched in Apr.        Business
  services                   investees                                     recommendations          in 18 companies          Developing       development of
                                                                              for business              (1st fund)          high capacity    electronic money:
                                                                            matching and AI             9 cases of        & speed next-gen         coin+
                                                                           screening models           collaboration         infrastructure
*1 Software as a Service                                                                                                                                     14
R&C                DS                    JCIB                GCB                   GCIB      Global Markets          AM/IS

    Group-wide digital transformation - Business Model Reforms
                                                             Initiatives                      Current situation                         Targets for FY23

                                                                                   Launched in December 2020.
1                                                                                                                                               ✓ Outstanding loan
                                                    Data-driven finance model      Approx. 100 clients applied                  USD150mm~
                                                                                                                                                  balance
                                                                                   in the first 6 months
      Creation of new businesses

                                                                                   Plan to establish a joint venture in this
                                                                                                                                                ✓ Purchased receivables
2                                                   Online factoring for SMEs      summer.                                          ¥9bn
                                         Alliance                                                                                                 outstanding
                                                                                   Plan to launch the service next spring
                                                                                   Payment network service for credit card
                                                    Utilization of blockchain
                                                                                   started in April 2021.                            7bn        ✓ Number of transaction
3                                                   platform in various
                                                                                   Plan to expand the services for vending       transactions     processed annually
                                                    fields
                                                                                   machines in this summer

                                                    Creation of digital            First case of issuance is scheduled                          ✓ Accumulated
4                                                                                                                                  ¥100bn
                                                    securitization market          in the first half of this year                                 entrusted balance

                                                                                   Promotional campaign for individuals          Over 1mm       ✓ Accumulated no. of
5                                                   Personal data trust bank
                                                                                   has started in July 2021                      downloads        app downloads

                                                                                   Start scanning seal forms and digitalizing
                                                    Seal form,                                                                                  ✓ Paperless for seal form,
     Digitalizing                                                                  balance statements (1st half of FY21)         Reduction of
6                                                   balance statement,
                                                                                   Start digitalizing loan agreements
                                                                                                                                                  balance statement,
  paper documents                                                                                                               200mm pages       loan agreement, etc.
                                                    loan agreement, etc.
                                                                                   (2nd half of FY21)
                                                                                   Began using AI for the areas in the
                                                    Voice recognition, chat,       left column                                                  ✓ Working hours replaced
7                                  Utilizing AI     OCR*1, etc.                    Proof of Concept is underway for
                                                                                                                                700thd hours
                                                                                                                                                  by AI (per year)
                                                                                   expanding to other areas
     Digitalizing
                     Operational restructuring                                     1,050 FTEs (Full-Time-Equivalent)             2,100 FTEs*2   ✓ Workload reduction
8 corporate center/ through RPA, BPR, etc.                                         workload reduction*2 in FY21                                   on FTE basis
  service operations
                                                                                   A part of credit screening process will be    Reduction of ✓ No. of cases of credit
       Corporate       Enhancement of internal                                     consolidated into divisions in charge of      40thd cases    screening (year)
9 customer business processes and channels                                         credit (spring, 2022)
                                                                                   Opening of online account for corporate                    ✓ Ratio of account
   related initiatives                                                             customers nationwide (spring, 2022)              75%         opening via online

    *1 Optical Character Recognition *2 VS end of FY17
                                                                                                                                                                      15
Japanese Corporate & Investment Banking Business Group

Naomi Hayashi, Group Head

                                                         16
R&C                       DS                      JCIB                       GCB                      GCIB               Global Markets               AM/IS

Review of the previous medium-term business plan
 Results                                                                                        Achievements and challenges

                              FY17               FY20             Changes                             • Established RM-PO model*1 (integrated management
                                                                                                        of the Bank, the Trust Bank, MUMSS)
                                                                                             Achieve-
                                                                                                      • Control of non-JPY loan-to-deposit gap and
Net operating                                                                                 ments
                               228.9              249.2              +20.2                              improvement of non-JPY lending spread
profits (¥bn)                                                                                         • Achieved the reduction target of equity holdings

                                                                                                          • Strengthen our ability to respond to customers’ new
                                                                                                            management issues
Expense ratio                    59%                57%              (2ppt)                     Chal-     • Thorough profit management with consideration for
                                                                                               lenges       capital cost
                                                                                                          • Build a sustainable business model under low interest
                                                                                                            rate environment
ROE                              10%                  8%             (2ppt)
                                                                                                Business environment
     Changes in net operating profits                                                         Accelerated changes in the                     Growing importance of
                                                                                                   social structure by                         corresponding ESG
(¥bn)
                                                                                                        COVID-19
                                                                                              • Rebuilding of business                    • Transition
                                                            249.2                               portfolio                                 • Rise of ROE management
                                                                                              • Development of new                        • Revision of CGC*2,
 228.9
                                                                                                businesses                                  reorganization of TSE*3
                                                                                              • Digitalization

                                                                                            Business and management issues faced by large corporates
                                                                                                  are becoming more sophisticated and complex

                                                                                                      The necessity to respond to customers' new
  FY17 Lending Trust Securi-Deposit Non- Expense 20年度…
  17年度…                                            FY20                      FY20
                                                                             20年度…                                management issues
 results              ties         interest       results                   targets
*1 RM: Relationship Manager, person in charge of sales. PO: Product Office, namely, business units and staff in charge of the planning, development and the
provision of products and services, RM-PO model: sales person of the Bank work with MUMSS and the Trust Bank as MUFG’s RM to respond quickly to customer              17
needs. *2 Corporate Governance Code *3 Tokyo Stock Exchange
R&C                      DS                     JCIB                          GCB                GCIB                 Global Markets           AM/IS

 Overview of the new medium-term business plan
 Basic policy                                                                               Financial targets
                  • Growing together with customers by sharing                                                            FY23 targets                vs FY20
                    business risk

    Vision
                  • Realization of "staircase management": Steady                           Net operating
                    growth year-on-year, as we move up stairs                                                                        285.0              +45.0
                    toward the medium-term business plan three
                                                                                            profits (¥bn)
                    years from now.
                                                                                            Expense ratio                              51%              (5ppt)

                           Key strategies                                                   ROE                                           9%            +4ppt
1      Establish a sustainable business model focusing on
       ROE
                                                                                            RWA (¥tn)                                  30.0
2      Strengthen our risk-taking capabilities to meet new
       needs of customer
3      Strengthen our ability to respond to new areas                                        Path to achieve ROE target
                                                                                                                                                            9%
                                   KPIs                                                                    Net profits over +¥100bn

       Lending spread*1*2                            RWA*1(¥tn)
Non-            0.68%
                                           32.4
JPY                                                                          (2.4)
      Turnaround
JPY                                                                           30.0
                0.38% Over +0.1%                                                             5%*3                  Steady year-on-year growth
                                                                                                                    "staircase management":
      Results           During MTBP
      H1     H2                  23年度                        Unprofi-
                                                                                                                      FY21        FY22       FY23
        FY20                     FY23      FY20 Equity         table
                                                             transac-
                                                                         Risk- FY23          FY20
                                                                                            20年度        Credit
                                                                                                                      NOP         NOP        NOP      RWA    FY23
                                                                                                                                                            23年度
                                                  holdings     tions,   taking              result       cost                                               target
                                                                etc.                         実績                      target      target     target            目標
 *1 FY23 target of JCIB business group (the Bank) *2 Calculated as annual net interest income / average loan balance during the fiscal year
 *3 RWA allocation amount for each business group was changed from the new MTBP. In addition, JCIB’s ROE for FY20 changed from 8% to 5%, due to the              18
     change in the RWA calculation method from the current basis to the finalized Basel III reforms basis.
R&C                      DS                    JCIB                       GCB                     GCIB              Global Markets          AM/IS

 Key strategies (1) Establish a sustainable business model
 focusing on ROE
 Efforts to achieve ROE target                                                              Improve profitability by company group
                                                                                           • Visualizing profitability of approx. 1,500 company
             Actions to achieve ROE target                                                   groups to improve profitability

  Increase in        • Improvement of base lending spread                                             Ⅱ                                                 Ⅰ
  gross profit       • Enhancement of risk-taking                                                R
                                                                                                 O
                     • Establish efficient operations by taking                                  R                             Focus area
                       advantage of COVID-19
Cost reduction                                                                                   A                                          Center of
                     • Promotion of business reforms based on                                    *2
                                                                                                                                             gravity
                       VoE*1
                                                                                                      Ⅲ                                                 Ⅳ
   Efficient         • Reduction of equity holdings and
 operation of          unprofitable transactions                                                                                 RWA
    RWA              • Input RWA to profitable assets
                                                                                            Reduction of equity holdings
                                                                                           • Accelerate the movement toward reduction more
                                                                                             than ever
                                                                                         ∎ Historical performance (acquisition cost basis)*3
 Establishment of a framework for each RM
           to achieve ROE target                                                                                                 Reduction of ¥300bn and more*4

                                                                                                                                             Accelerate further
  Upgrade of         • Integration of accounting and
                       performance evaluation ROE                                            ¥9.2tn
 performance
  evaluation         • Performance evaluation linked to ROE                                                           ¥2.8tn
                                                                                                                                        ¥1.9tn
    Improve       • Visualize profitability by company group
 profitability by
                                                                                           End Mar 02            End Mar 15           End Mar 21      End Mar 24
company group • Strengthen initiatives for focus area                                                                           6years          3years

 *1 Voice of Employee *2 Return On Risk-Weighted Assets   *3 Sum of the Bank and Trust Bank *4 Total amount of sale                                           19
R&C                      DS                     JCIB                     GCB                     GCIB              Global Markets               AM/IS

 Key strategies (2) Strengthen our risk-taking capabilities
 to meet new needs of customer
 Strengthening capital financing                                                           Strengthening real estate business
 Examples of customer actions for restructuring                                                                1
             the business portfolio                                                                                Group-wide CRE*4
      Capital                                                                                                          proposals
                                    M&A                    Carve-out
  reinforcement                                                                                                    ESG initiatives
                                                                                          2        Enhancement of                   3
                                                                                                                                           Strengthening
                                                                                              risk-taking through loans
      Enhancement of                          Providing group                                         and equity                          value chain profit
        risk-taking                              solutions
∎ Market environment
                                                                                              Promote real estate business as MUFG group
                                          Amount of hybrid finance                                   BK                        TB                  MUMSS
No. of domestic LBO deals*1
                                            executed in Japan*2                               • Non-recourse         • Referral, consulting     • M&A
                            136                                                                 loan                 • Custody
                132                                                ¥3.9tn                                                                       • FA*5
                                                                                              • REIT loan            • Asset Management         • Dealing in
                                                                                              • Equity               • Equity                     private
                                                       2.0兆円
    119                                    ¥1.6tn                                                                                                 placement
                                                                                               Enhancement of risk-taking
                                                                                                           Planning and umbrella organization
                                                                                                  MUFG                                                   New
                                                                                                                 for real estate business
   2018        2019         2020            FY18        FY19        FY20
                                                                                        ∎ Real estate revenue plan (index)
∎ Examples
                                                                                             Finance revenue      Fee revenue (Referral, FA etc.)
                                           Green/hybrid bond*3                                                           139
 LBO Mezzanine Loan                                                                                                                                            119
                                               underwriter                                             100                                      100
 Competitive, stable                        Capital funding to
   funding using                         support investment and                                                (FY20=100)                              (FY20=100)
 mezzanine financing                          development                                             FY20              FY23                    FY20           FY23
 *1 Created by MUFG from materials announced by each company *2 Created by MUFG from materials announced by each company, as of April 1, 2021
    (on the basis of the contract date and the determination date) *3 Hybrid bonds with green bond characteristics                                                    20
 *4 Corporate Real Estate *5 Financial Advisor
R&C                        DS                    JCIB                            GCB                         GCIB            Global Markets              AM/IS

 Key strategies (3) Strengthen our ability to respond to
 new areas
     Strengthening responses to social issues                                                           Efforts to climate change (transition & innovation)

                                                                                                                MUFG sustainable finance target: ¥35tn
      Create new businesses to solve social issues                                                                      (Cumulative total for FY2019-FY2030,
     through sharing business risks with customers                                                                       of which ¥18tn for environment)

        Development                                         Implementation
        of problem-
                                  Incorporation
                                                              of business
                                                                                                                Transition support through engagement
                                   of external
       solving human
                                   knowledge
                                                                creation                                                             Engagement
         resources                                             program                                            MUFG                                         Customer

     Sustainable Business Division (SBD)                                                                                 Expansion of engagement targets
                                                                                                                                              Transportation/Iron and
 • Newly create SBD by expanding the function of                                                                Energy/Utilities                  steel/Chemicals         ・・・
   Sustainable Business Office
                                                                                                                       Financial support for innovation
 MURC*1                                        SBD     New
                             • Follow-up on policy trends                                                                                                 New businesses
                                                                                                                Loan     Mezzanine       Equity
                               and new technologies                                                                                                       and technologies
 Overseas
                                                                                Customer

 branches                    • Business development
                               and provide solutions                                                              Issuance of Japan’s first        Underwriting of Toyota Motor
                                                                                                                  transition bond by major          Corporation's Woven Planet
                                                                                                                      shipping company                         bond
                                                                           R                                                MUMSS becomes                        MUMSS as
                                                                                                 Track record
      Public  Involvement in              Group companies                  M                                                lead underwriter                     joint-lead
      office,     policy                                                                                                    and SA*2                             underwriter
     Industry consultations              BK      TB     MUMSS etc.
      group                                                                                                         Offshore wind power                Hydrogen fuel stations
                                                                                                                   generation business in           business in U.S./debt finance
                                                                                                                    Akita/project finance                       First MUFG’s
                                                                                                                                                                financing that
Realize sustainable business by engaging with customers through                                                             the Bank                            specializes in a
      the realization of policies and systems in public-private                                                             participated as                     hydrogen-related
   partnerships, the promotion of corporate partnerships, etc.                                                              FA・MLA*3                            business

*1    Mitsubishi UFJ Research and Consulting   *2 Structuring Agent   *3   Mandated Lead Arranger                                                                                   21
Global Commercial Banking Business Group

Takayoshi Futae, Group Head

                                           22
R&C                           DS                      JCIB                   GCB                       GCIB              Global Markets                AM/IS

  Review of the previous medium-term business plan
   Results                                                                                       Achievements and challenges

                                   FY17               FY20            Changes                          Inorganic strategy
                                                                                                       -ASEAN PB*2 network completed with consolidation of
 Net operating                                                                                Achieve- Bank Danamon
                                   171.4               275.6          +104.3                  ments    Growth of Krungsri
 profits (¥bn)                                                                                         -Growth centered on Retail and Consumer Finance (CF)
                                                                                                         and rising to 3rd place in Thailand
                                                                                                           Restructure MUB’s Regional Banking (RB) business
                                                                                                           -While new framework and strategies have been put
 Expense ratio                       72%                65%            (7ppt)                                in place, reconstruction is ongoing
                                                                                                Chal-      Support the growth of Bank Danamon
                                                                                                           -Support for growth path of newly consolidated Bank
                                                                                                lenges      Danamon
 ROE                                    6%                  1%         (5ppt)                              Strategies on entire ASEAN operations
                                                                                                           -Business foundation across PBs have been established,
                                                                                                             but concrete results are yet to come

   Changes in net operating profits                                                              Business environment
  (¥bn)                                                                                       • Decline of policy interest rates in countries where PBs reside in
                                   Consolidation                                              • Decrease in sales of new automobiles in Indonesia
                                                            275.6                             • Recovery of the U.S. economy (Estimated FY 2021 GDP: +6.4%*3)
                   Rose to 3rd
                 place*1 per net                                                              [Table 1] Policy interest rates           [Table 2] Forecast on sales of new
                    profits in                                                                                                                    automobiles in Indonesia
                    Thailand                                                                                                            (2019 set as the standard)
                                                                                                 6.00%
   171.4                                                                                                                                     100%                           95%
                                                                                                                                                                     83%
                                                                                                    Indonesia                      3.50%                     72%
                                                                                                                                                    60%
                                                                                                 2.50%     U.S.                                                             90%
                                                                                                                                                                     80%
                                                                                                 1.75%                                                      60%
                                                                                                                                     0.50%          50%                 Motorcycle
     FY17     MUAH         KS           BDI        Others    FY20             FY20                     Thailand
                                                                                                                                     0.25%                              Automobile
   Results                                                  Results          Target            19/1    19/7    20/1   20/7    21/1           2019   2020     2021    2022   2023

*1 Based on net profits. Ranking among domestic banks in Thailand, excluding government-funded financial institutions *2 Partner Bank                                         23
*3 IMF, World Economic Outlook Database, April 2021
R&C                        DS                      JCIB                      GCB                       GCIB                 Global Markets                 AM/IS

 Overview of the new medium-term business plan
 Basic Policy                                                                                    Financial targets
                                                                                                                                    FY23 targets                  vs FY20
                  “Committed to empowering a brighter                                          Net operating
   Vision                                                                                                                                                           +20.0
                     future for customers in ASEAN”                                                                                        290.0
                                                                                               profits (¥bn)                                                (+70.0 vs FY21)

                                                                                               Expense ratio                                 64%                    (1ppt)
    Strategies for individual PBs and key initiatives
                                                                                               ROE                                             6%                  +5.5ppt
    1     Support the growth of Bank Danamon

    2     Restructure MUB’s RB businesses                                                      RWA (¥tn)                                     19.5

    3     Strategies on entire ASEAN operations
                                                                                                 Path to achieving the ROE target
                                                                                                Major cause
                    KPI (ROE*1 for each entity)                                                • Decline in interest rates of PBs          Net profits +¥70.0bn
                                                                                                 residing countries
                                                                                               • Reduction of CF cap interest
                                                                                                                                                                            6%
                                                                                                 rate in Thailand
                                                  BDI                                          • Stagnant automobile sales in
                            KS                                                                   Indonesia

  8.00%
  7.5%

                                                                                                                         Credit costs
                                                                                                 0.5%                    (¥100.0bn)
                                                      MUAH
 -2.00%                                                                                          FY20       Credit      FY21        MUAH       KS           BDI     VTB/     FY23
                FY20               FY21              FY22              FY23                      result     costs      impact                                       SBC,    target
                                                                                                                                                                    etc.
*1 ROE of MUAH is portrayed based on local managerial accounting basis. ROE of KS and BDI is portrayed based on information disclosed on local disclosure
   standards.
                                                                                                                                                                               24
R&C                        DS                       JCIB                       GCB                   GCIB               Global Markets                AM/IS

     MUFG Union Bank (MUB)
     FY20 results*1                                                                             MUB new strategy: progress on priority areas
    (¥bn)
                                     FY19                FY20                  YoY                           Basic Concept for “Back to Basic”
    (US$1=¥103.50)                                                                                   Customer                                  Focus on
                                                                                                                        One Team
    Gross profits                     563.1               559.3                  (3.8)               - Centric                                Profitability
        Expenses                                                                                                        Strengthen SME business
        (Goodwill
                                      595.4               470.9              (124.4)
        impairment)                   (167.1)               (36.9)           ((130.1))                                                                     Progress
                                                                                                  Segment             Revenue
    Net operating                                                                                                                       Loan origination               NPS*5
    profits                           (32.3)                88.4             +120.6                                   $2,000mm
                                                                                                                                     Enhanced the capability for key industries;
                                      (134.8)             (125.3)               ((9.5))         Commercial                           tech, health care, etc.

                                                                                                                           ~
    (Excl. impairment)
                                                                                                 Banking                $50mm          Origination +17%               #2 ⇒ #1
        Credit cost                     23.2                87.4               +64.3                                                 Established the credit screening line for BB
                                                                                                                        $50mm
                                                                                                   Business
    Net profits                       (55.4)                   1.0             +56.4

                                                                                                                           ~
    (Excl. impairment)                (111.7)               (37.9)            ((73.8))             Banking              $10mm
                                                                                                                                       Origination +53%               #7 ⇒ #3
    Loans                                                                                                                            Internally hired 54 FTE SB specialist
                                          9.0                  8.3               (0.6)              Small               $10mm
    End balance (¥tn)
                                                                                                   Banking                             Origination +26%               #5 ⇒ #3

                                                                                                                           ~
    New CEO’s review of current strategy
                                                                                                             Enhance deposit quality at Regional Bank
  In Mar 2021, Kevin Cronin was appointed as Regional Executive for   Low cost deposit grew by introduction of new products and
  the Americas. His experiences in BoA*2 and in 10-year Head of GCIB- collaboration with TB(Change from Mar 2020 to Mar 2021)
  US will help strengthen SME business
                                                                                                 Core Deposit             $39.4bn              $49.8bn (up by $10.4bn)
                             Prioritized Actions through 100 Days Plan
                                                                                                Cost of Funding            0.66%              0.13% (down by 0.53ppt)
                                1       Reigniting         2       Rewiring for
                                     revenue growth            operational efficiency                    Implement efficiency-related initiatives
                                              3      Rebalancing                              42 branches consolidation*6, all 22 PurePoint*7 FC closure,
                                                portfolio of businesses                       non-core exit etc.
                                Two divestitures for TB*3 have been publicly released*4        ⇒Cost reduction to be realized by approx. $57mm per year
*1 U.S. GAAP, MUFG Union Bank, N.A. FFIEC031 *2 Bank of America *3 Transaction Banking *4 MUB Transaction Banking released two transactions;
(1) Jan 2021: Custody (deposit size : $1.2bn), (2) Apr 2021 : Home Owners Association (deposit size : $4.0bn) *5 Net Promoter Score ranking by Greenwich
Association (Peer comparison with the same trading areas from Mar 2020 to Mar 2021) *6 Record from Mar 2020 to Jun 2021 *7 MUB’s nationwide retail                              25
financial services platform, which comprises retail internet banking and lightening branch
R&C                             DS                           JCIB                          GCB                          GCIB                   Global Markets                     AM/IS

        Krungsri (Bank of Ayudhya)
         FY20 results*1                                                                                               Establish a position in consumer finance
                                                                                                                    Retail revenue and share in the overall bank portfolio are
       (¥bn)                                    FY19                  FY20                     YoY                  growing
       (THB1=¥3.44)
                                                                                                                               FY15                         FY20
       Gross profits                              387.5                 392.1                    +4.7
           Expenses                               175.5                 166.7                    (8.7)
       Net operating profits                      212.0                 225.3                  +13.4                              ¥276.5bn                                        ¥392.1bn
           Credit Cost                              97.0                126.0                  +29.0                                  Retail                                          Retail
                                                                                                                                  ¥180.2bn                                        ¥301.9bn
       Net profits                                  91.7                  79.2                 (12.5)                             (65%)                                           (77%)
                                                                                                                                                                                                    +¥121.7bn
       Loan                                                                                                         Trends in domestic share                 (Domestic rank in parentheses)
       End balance (¥tn)
                                                      6.3                   6.3                  +0.1
                                                                                                                                                  FY15                   FY20
                                                                                                                        Auto loan            22% (2nd)                 30% (1st)               Leveraging MUFG’s
         Krungsri rose to 3rd place on net profit basis                                                                                                                                         relationship with
                                                                                                                     Personal loan 27% (1st)                           30% (1st)
         Low NPL ratio maintained*2                                                                                                                                                            auto manufacturers
                                                                                                                      Credit card             15% (1st)                16% (1st)
      Net profit trends             (Local standard)               Trends in NPL ratio (Peer comparison)
(THB bn)          KS        BBL        SCB         KTB        KB                    FY15         FY21/1Q              MUFG collaboration
   60                                              3rd
                                                     in the
                                                   domestic            KS         2.24%              1.99%
                                                    market
                                                                                          (0.25ppt)
                                                                                                                                 M&A Finance                                          ESG Finance
   45
                                                                                                                                         ⚫ Acquisition of a                                   ⚫ First government-
                                                                      BBL         2.80%              3.70%
                                                                                                                                           leading beverage                                     issued ESG bond
                                                                      SCB         2.89%              3.79%                                 company in                                           in ASEAN
   30                                                                                                                                      Vietnam
                                                                      KTB         3.20%              3.66%                                                                                    ⚫ Utilizing MUFG’s
                                                                                                                                         ⚫ M&A support                                          ESG knowledge,
                                                                       KB         2.70%              3.93%           Bridge loan           through bridge
                                                                                                                                                                           Issuance             Krungsri was
   15                                                                                                                   total*3            loans and bonds                   total*3            appointed as joint
                                                                    Peer avg.     2.92%              3.77%
        FY14 15        16      17     18     19      20     21                                                        Approx.                                               Approx.             lead manager and
        Includes affiliated company IPO profits                                           +0.85ppt                     ¥550bn                                               ¥100bn              advisor
*1 Based on local disclosure standards under Thai GAAP. Net profits are net profit attributable to owners of the bank. FY19 excludes one-time gains on investments from the sales of shares                    26
in certain subsidiary (¥20.9bn in net profit base). *2 The figures of other banks are Bangkok, Siam Commercial, Krungthai and Kasikorn *3 Shared lending / issuance with multiple banks
R&C                        DS                       JCIB                      GCB                    GCIB              Global Markets          AM/IS

 Bank Danamon
    FY20 results*1                                                                            Enhancement of consumer finance

(¥bn)                               FY19               FY20                 YoY                   Knowledge transfer of Krungsri and hiring of professional
(IDR1=¥0.0074)
                                                                                              Dan Harsono, who was KS’s Retail CF Head and the key
Gross profits                        134.1              130.4                 (3.7)           person to KS’s growth has been appointed as MUFG Advisor
                                                                                              and Commissioner for Bank Danamon (Under application to local
     Expenses                          69.0               60.8                (8.2)
                                                                                              authorities)
Net operating profits                  65.1               69.6                +4.5                                            ’90 GE Indonesia Director         Knowledge
                                                                                                        Dan Harsono           ’94 GE・Astra JV (Largest
     Credit cost                       34.9               53.1              +18.2                       (Native Indonesian)
                                                                                                                                  finance company in      Experience
Net profits                            30.1                 7.4             (22.7)                        New Advisor             Indonesia) Commissioner
                                                                                                                              ’07 KS Marketing Head
                                                                                                          New Commissioner                                       Network
Loan                                                                                                                          ’15 KS Head of Retail CF
                                         1.0                1.0               (0.1)
End balance (¥tn)
                                                                                                                  Key initiatives to enhance CF          (THB1=¥3.44)
    Deepen MUFG collaboration                                                                 1                                                End      End
                                                                                                               Collaboration PT       KS
                                                                                                                                              Mar-16   Mar-21
                                                                                               Housing            with Bank          Loan                         Change
⚫    Collaboration with MUFG is progressing steadily
                                                                                                loan            Danamon and         balance
     (Notable deals from FY20 onwards)
                                                                                                                Jakarta branch       (¥tn)
                                                                                                                                               0.6       1.0     +67%
     Dealer finance                                               etc. total of 10 deals       Enhance relation with developers,           Process
                                                                                                      rate improvement                   contraction       Cross-sell
Affiliated housing loans                                            etc. total of 6 deals

     Islamic finance                                                                                 Marketing           Screening / Execution    Business expansion
                           Islamic Finance for employees, etc. total of 11 deals
                                                                                              2                                                End      End
⚫     Establishment of a new collaboration framework bridging                                                  Comprehensive          KS
                                                                                                                                              Mar-16   Mar-21
      Bank Danamon and MUFG Bank Jakarta branch                                                    Auto                              Loan                         Change
                                                                                                                approach to
                                                                                                   loan                             balance
                           One Team (Virtual unit)                                                               ecosystem           (¥tn)
                                                                                                                                               0.9       1.4     +56%

                                                                MUFG Bank
            MUFG Bank                    Bank
                                                                Transaction
          Jakarta branch               Danamon
                                                                Banking Div.                        Supplier            Maker            Dealer          Consumer
        One leader, common goal, collaboration incentive
                                                                                                                                                                      27
*1 Impact from netting-off loss on restructuring has been accounted as credit costs in FY20
R&C                      DS                      JCIB                      GCB                    GCIB                  Global Markets                    AM/IS

    Comprehensive strategies for ASEAN / Credit costs
      Grab collaboration                                Preceding case in Thailand              Credit costs
   Providing new digital financial services                                                Expect a significant decrease in credit costs
                                           Joint                                                 [Table 1] MUAH credit costs*1            [Table 2] MUAH historical average
                                                                                                 (¥bn)                                              depreciation and reserve ratio*2
                                      development
                                                                                                                                                        Depreciation ratio   Reserve
   ⚫ Financial knowledge               of financial          ⚫ Advanced technology                        85.8
                                        services                                            M                                                           Normal Economic      ratio
       and expertise                                            & dynamic data                                                                                     slump
                                                                                            U                       1Q: (19.3)                         (FY13-19) (FY08-12) (FY21/1Q)
         Providing small loans through Grab platform                                        A 26.1                 (YoY(71.4))            MUAH          0.1%        0.6%     157.4%
                                                                                            H                                            Regional
                                                                                                                                                        0.3%        1.7%     153.2%
                                  Food merchants                   App users                                                              banks
              Drivers                                                                                                                      Big4         0.7%        2.5%     302.3%
           From Sep. 2020           From Oct. 2020               Plan to start                   FY19     FY20     FY21        FY23
        90thd cases distributed 10thd cases distributed
                                                                  from 2021                      [Table 3] KS credit costs*1
         (accumulated total)     (accumulated total)                                                                                      [Table 4] KS NPL ratio and reserve ratio
                                                                                                (¥bn)
       Immediate borrowing with just a few taps                                                                                                               NPL ratio
                                                                          Financing                        126.0     1Q: 25.8                                                Reserve
                                                                          complete                                  (YoY (7.8))                                               ratio
                                                                                            K      97.0                                                FY21/1Q vs FY15 (FY21/1Q)
     Notice to
      a pre-                                                                                S
                                                                                                                                                 KS     2.0%       (0.2%)    175%
     approved
       entity                                                                                                                              Other
                                                                                                                                          banks*3
                                                                                                                                                        3.8%       +0.8%     155%
                                                                                                   FY19    FY20     FY21          FY23
                          Check                 Enter        Immediate borrowing/
                                                                                                 [Table 5] BDI credit   costs*1           [Table 6] BDI risk monitored loan balance
                      borrowing limit         borrowing       Automatic repayment                                                          (¥bn)*4
                          on App               amount              from sales                   (¥bn)                 1Q: 8.9    4,000

                                                                                                                    (YoY +0.1)
                                                                                                                                                      345.7
                                                                                                            53.1
                                                                                                                 (vs20/4Q (9.2))
    Acquisition of an un- Partner Bank Realization of digital                               B                                                                     243.3
                                                                                                                                                                             214.8
   banked customer base                     X
                                       transaction lending                                  D
                                                                                                   34.9                                  2,000

                                                                                            I
                                Accelerate Partner                                                                                          0

                                 Bank's own DX                                                     FY19     FY20        FY21      FY23                20/2Q       20/4Q      21/1Q

*1 All figures are based on local financial statements converted into ¥. For FY19/FY20 are US$1=¥103.50, THB1=¥3.44, IDR1=¥0.0074 and FY21/1Q is
 US$1=¥110.71, THB1=¥3.54, and IDR1=¥0.0077 *2 Figures for regional banks are the average of eight banks: Comerica, Huntington, M&T, Regions, Keybank,
Citizens, Fifth Third, and Truist. Big4 is the average of four banks: Citibank, Wells Fargo, Bank of America, and JPMorgan                                                        28
*3 Figures for other banks are Bangkok, Siam Commercial, Krungthai and Kasikorn *4 Risk monitored loans are converted into ¥ at IDR1=¥0.0077
Global Corporate & Investment Banking Business Group
Masato Miyachi, Group Head

                                                       29
R&C                     DS                 JCIB                 GCB              GCIB          Global Markets         AM/IS

 Review of the previous medium-term business plan
  Results                                                                     Achievements and challenges

                              FY17        FY20            Change                     • Loan NIM improved through continuous
                                                                                       portfolio recycle
                                                                             Achieve
 Net operating                                                                       • Non-JPY loan-to-deposit gap improved to
                              169.5        176.4            +6.9             -ments
 profits (¥bn)                                                                         stable liquidity level through disciplined asset
                                                                                       control and deposit increase
                                                                                      • Expand fee income under disciplined RWA control
 Expense ratio                 61%          63%            +3ppt                          • Appropriate risk appetite
                                                                              Chal-     • Product neutral business promotion
                                                                             lenges • Improve efficiency through streamlined and
 ROE                            7%            5%           (2ppt)                     appropriate resource allocation aligned with
                                                                                      the target business portfolio

  Changes in net operating profits                                            Business environment
 (¥bn)                                                                                • Continuous headwind to interest income
                                                                               Low    • Expanding money flow intermediated by
                                                                             interest institutional investors due to increase of
                                                                                        investment in-flow to asset managers*1
                                                176.4                               • Possibility of increasing business restructuring
   169.5
                                                                              Post-   or M&A opportunities
                                                                             COVID • Necessity of business strategy identifying
                                                                                      sector characteristics in post-COVID market
                                                                                      • Responding to support sustainability including
                                                                                        decarbonizing activities
                                                                              ESG     • Risks to credit costs or “stranded asset”
    FY17
    17年度     Loan
             貸出金 Fees 手数料& Deposit
                              預金   Others
                                    その他 Expense
                                          経費     FY20
                                                 20年度         FY20
                                                              20年度
   results
     実績           JV ・JV収益
                      profits                   results
                                                  実績         targets
                                                               目標                       increase due to a lack of ESG strategy

*1 Asset management company
                                                                                                                                          30
R&C                      DS                     JCIB                     GCB                    GCIB               Global Markets             AM/IS

  Overview of the new medium-term business plan
  Basic policy                                                                              Financial targets

                   • Develop a sustainable business model
                                                                                                                         FY23 target                vs FY20
                     delivering satisfactory portfolio returns in                         Net operating
   Vision            a dynamic business environment                                                                                180.0                   +40.0
                                                                                          profits (¥bn)
                   • To be a global financial partner of clients
                     with world-class expertise and capabilities
                                                                                          Expense ratio                              58%                   (8ppt)

                                                                                          ROE                                             7%               +4ppt
                           Key strategies
 1     GCIB & Global Markets                                                              RWA (¥tn)                                  21.8
 2     Enhance sustainable business management
                                                                                             Path to achieve ROE target
                                    KPIs
                                                                                                                Net profits +¥95bn
                                                  FY20             FY23                                                                                       7%
 GCIB-Global Markets
 combined ROE*1
                                                    3.6%             7.5%                                                                           0.2%
                                                                                                                                          0.4%
                                                             *2
 Non-interest income ratio                        47.6%           51.5%                                                        1.0%
                                                                                                                    0.4%
                                                                                               3%
 Institutional investor portfolio
 ratio*3
                                                      12%             20%
                                                                                                         2.0%
 Syndication/DCM wallet ranking
 (the U.S. / NIG*4)*5
                                                      #17              #12
 ⚫ Realize profitability improvement by developing                                            FY20      Credit
                                                                                              20年度     与信費用等 Interest
                                                                                                                 金利              Non-
                                                                                                                               非金利        Expense
                                                                                                                                           経費       RWA
                                                                                                                                                    RWA        FY23
                                                                                                                                                             23年度
   product neutral business model through setting                                             result     cost, income          interest                       target
                                                                                               実績        その他
                                                                                                        others                 income                         目標
   common goals with Global Markets
*1 Targeted domains: Overall GCIB + Global Markets S&T (excl. Japanese Corporate sales) *2 After adjustment of one-time impacts                                        31
*3 Lending amount in managerial basis *4 Non-IG (Transactions with Non-Investment Grade companies) *5 Source: Dealogic (Calendar basis)
R&C                         DS                     JCIB                     GCB                     GCIB                Global Markets              AM/IS

  Key strategies (1) GCIB & Global Markets
  Expansion of Non-B/S income through utilizing
  B/S capacity                                                                                 Institutional investor business “Three focuses”
                                                                                                                    ⚫ Institutional investor target clients:
           GCIB & Global Markets revenue target*1
                                                                                                                      approx. 120 Gr.
                                                                                                                      • Approx. 90%: asset managers (AM)
   (¥bn)               00           500
                                     50       1,000
                                              100         1,500
                                                           150        2,000
                                                                        200                                 Approx.     and financial sponsors (Sponsor)*3
                         3.1%                                                                                90%      • Business promotion based on tailored
                                                                        B/S                                             account plan on a one MUFG basis
          Loans 貸出
                 1
                                                                    related                                                         Improving loan NIM by offering
                              9.0%                                 income                                                           secured finances
           貸出関連
         Loan                                                      +5.1%
                                                                                                    AM/
  related fees
               2                                              CAGR +5.1%                          Sponsor
            手数料
                         2.9%                                                                                                       Capturing flow products cross-
                                                                                                                                    sell as a ancillary opportunities
      Deposits 預金
                3

                             7.3%                                                                        Investment portfolio managed by funds
     シンジケーション
 Syndication/
              4
        DCM
          DCM                                                                                                                                            NIG
                                          24.7%                                                     Real          Infra-     Loans /      Listed
                                                                                                                                                        Private   ・・・
                                                                                                   estate       structure     Notes       equity
             証券化
Securitization 5                                                                                                                                        equity

                         4.2%                               Non-B/S income
                                                       (O&D/OtoD, cross-sell)              Enhance O&D/OtoD of NIG business
              FX    FX
                    6
                                                                CAGR +5.8%                 leveraging strong relation with AM/Sponsor
                            5.2%
             Flow
        Rates/                                                                                         Three focuses                 Profit recognition      Profitability
                 7
           Products
        Credits
                                                                                               Improve loan NIM by
                                           26.7%                                                                                      1   2    5    8
         Structured
    Structured                                                                                   secured finances
                  8
          Solutions
      solutions                                                                                                                                                ROE
                                                                                               Capture flow product                       6    7              approx.
                                                                                                    cross-sell
              Equity
         Equity  9                                                                                                                                             10%
                                                                                                Enhance O&D/OtoD
                                                                                                                                          2    4
                                                                                                  of NIG business
                             FY20*2*2
                            20年度    1     23年度
                                           FY23         CAGR
*1 Targeted domains: Overall GCIB + Global Markets S&T (excl. Japanese Corporate sales)
*3 Financial sponsor companies such as private equity fund management companies
                                                                                          *2 After adjustment of one-time impacts                                            32
R&C                    DS                JCIB                     GCB                      GCIB                 Global Markets               AM/IS

  Key strategies (1) GCIB & Global Markets
                                                                                                Investment Banking business collaborating with
  Portfolio optimization                                                                        Morgan Stanley (MS)
                                                                                               ⚫ Unique collaborative approach leveraging each strength
 ⚫ Expansion of institutional investor portfolio
                                                                                                 marks good track records in IG space especially in large
   (approx. ¥0.8tn*1)                                                                            event finance deals
            • Higher-return assets mainly from target clients                                  ⚫ Develop further collaboration opportunities in institutional
 High                                                                                            investor/NIG area
                                                                                                                 KPI                             FY20              FY23
                                                                                              Syndication・DCM
                                                                                                                                                   #12             #10
                                                                                              wallet ranking (IG*2)*3
                  Portfolio ratio: 2%                 Portfolio ratio: 34%
  Profitability

                  Ave. ROE: 8.6%                         Ave. ROE: 8.3%                                     5                                  5         5
                                                                                                                              7       7                             Defend
                                                                                                    9                9                                              top10
                  Portfolio ratio: 14%                Portfolio ratio: 50%                                                                     6
                                                                                                                                      8
                  Ave. ROE: 1.8%                         Ave. ROE: 3.1%                                                                                               10
                                                                                                   12      12       11       11                        12
                                Low-return monitoring area
                                • Raise the return threshold towards                               2014 2015 2016 2017 2018 2019 2020                                2023
                                  the GCIB ROE target
                                                                                                                              MS                       MUFG
  Low                                   Profit amount                        High              ⚫ For ECM/M&A advisor business, MS’s strong market presence
                  Portfolio Management based on quad analysis*1                                  contributes maximizing MUFG’s business efficiency in both
                                                                                                 strategic and economic perspective*4
                     ⚫ Portfolio recycle/low-return relationship                                    ECM・M&A advisory wallet ranking (US$mm (%))*3
                       exits (approx. (¥1.4tn)*1)
                                                                                                           ECM 2020                             M&A Advisory 2020
                        • Enhance origination management through
                          disciplined deal screening and raising return                        1    GS*5         3,070 (11.2%)            1    GS             2,473 (10.0%)
                          threshold
                                                                                               3    MS             2,351 (8.6%)           3    MS              1,851 (7.5%)
                        • Intensified return improvement monitoring and low-
                          return relationship exits (after monitoring period)                  -    MUFG                 33 (0.1%)         -   MUFG                1 (0.0%)
*1 Quad analysis divided by portfolio median of the profitability and profit amount. Portfolio ratio and average ROE are based on managerial basis.
Portfolio ratio is calculated by RWA 2 Investment grade *3 Source: Dealogic (Calendar basis) *4 Equity in earnings from MS is not attributed to GCIB
                                                                                                                                                                              33
*5 Goldman Sachs
R&C                   DS                  JCIB                  GCB                 GCIB            Global Markets           AM/IS

 Key strategies (2) Sustainable Business Management
  Appropriate risk appetite / challenge to higher                                      Develop corporate value through sustainable
  risk-return                                                                          business
 High
                                MARS                                                                League table 2020 (2019 in parenthesis)

                                   Institutional investor                               Sustainable loan            #2     Renewable               #2
                                                                                        MLA                         (#4)   energy finance          (#2)
                                   business area
  Risk-return

                                                             O&D/OtoD
                                                               in NIG                 ⚫ Promote sustainable                ⚫ Enhance portfolio
                                          Secured                                       finance                              management towards
                                          Finance/                                      (Environment/social)                 “GHG*1 net-zero in 2050”
                                        Securitization       O&D/OtoD
                                                                                      ⚫ Support new technology             ⚫ Support transition through
                                                               in IG
                                                                                        for carbon neutralization            strengthening customer
                  Take & hold
                                                                                                                             engagement
                  model in IG
 Low                                                                                  ⚫ Develop appropriate targets and disclosure policy for the
                Credit risk                           Marketable credit risk            sustainable business activities

                                                                                       Expense Control
                                   Account planning
                              (Individual client strategy)                            (¥bn)
                                                                                              263                          Direct expense
                                                                                                             249
                      Develop appropriate risk appetite
                                                                                                                           ⚫ Focus on operating leverage
                       aligned with business strategy
                                                                                              36%                          ⚫ Optimize HR allocation
                                                                                                            39%              aligned with the business
  Deal screening managed by                  Enhancement of marketable
                                                                                                                             strategy/portfolio
  front/credit division jointly                credit risk management

                               ⚫ Challenge to higher risk-return                              64%           61%            Indirect expense
                                 model/client base utilizing different credit
                                 monitoring methodology backed by                                                          ⚫ Reshape business platforms
                                 digital technologies                                                                        collaborating with corporate
       Digital tech-                                                                        FY20
                                                                                           20年度              FY23
                                                                                                            23年度             center
     driven financing
                               ⚫ Developing IRR 10%+ portfolio and
       for startups              consider expanding capital commitment                         Indirect      Direct        ⚫ Peak out of regulatory costs
                                 from US$80mm (current)                                        間接費           直接費
                                                                                                expense       expense
*1 Greenhouse Gas
                                                                                                                                                            34
Global Markets Business Group
 Shigeru Yoshifuji, Group Head

                                 35
R&C                           DS                          JCIB                   GCB                GCIB          Global Markets          AM/IS

Review of the previous medium-term business plan
Results                                                                                         Achievements and challenges

                                 FY17                  FY20                Change              ∎ Sales & trading
Net operating                                                                                               • Institutional investors business expanded
                                  365.7                 377.4               +11.7               Achieve-
profits (¥bn)                                                                                                 through collaboration among business groups
                                                                                                 ments
                                                                                                            • Enhanced the GCIB collaborative approach
Expense ratio                        42%                  44%               +1ppt
                                                                                                          • Further expansion of institutional investors
                                                                                                            business
                                                                                               Challenges    • Develop appropriate risk appetite
ROE                                    7%                   5%              (2ppt)                           • Strengthen product offering capabilities
                                                                                                            • Rebuild corporates business

 Changes in net operating profits
                                                                                               ∎ Treasury
(¥bn)

                                                                                                            • Strengthened group treasury operations
                                                                                                Achieve-
                                                                                                 ments        • Diversified non-JPY funding
                                                                                                              • Established group governance system
                                                                377.4
 365.7
                                                                                                            • Expansion of excess of deposits over loans
                                                                                                              due to monetary easing
                                                                                                            • Increase balance sheet’s profitability
                                                                                               Challenges
                                                                                                             Globally low interest   0
                                                                                                                                     Shrinking gap of long- and
                                                                                                              rates environment      short-term interest rates
           Institutional          Treasury   Expense   Others     FY20          FY20
  FY17
 results
             investors Corporates                                results       targets                                                                            36
R&C                       DS                      JCIB                      GCB                GCIB            Global Markets            AM/IS

Overview of the new medium-term business plan
 Basic Policy                                                                             Financial targets

                   『Drive Growth and Transformation』                                                              FY23 targets                 vs FY20
    Vision          Not only pursue growth but also challenge                             Net operating
                   ourselves to transform for sustainable growth                                                           370.0                 (25.0)
                          of customers as well as MUFG                                    profits (¥bn)

                                                                                          Expense ratio                      39%                 +2ppt
                             Key strategies
                                                                                          ROE                                 8%                 +2ppt
                                                     Digital            ESG /
                                                      shift             SDGs              Economic capital
                                                                       Product            セールス&トレーディングビジネス戦略
                                                                                                           3.9
     Strengthen sales & trading                                                           (¥tn)
1                                                       EFX            develop-
     business                                                           ment
                                                                                           Path to achieve ROE target
2    Further sophistication of
                                                         AI               ESG
     treasury business                                                  invest-
                                                                                                                           (Sales & trading)
                                                                                                             8%                  10%              11%
3    New investment business                                             ments

                                                                                              6%

                                      KPIs
                                                                                                                           (Treasury)
                                                      FY20              FY23                                                                       7%
                                                                                                                                  5%
GCIB-Global Markets
                                                       3.6%               7.5%
combined ROE*1
                                                      Accumulation of
New investment business                                                                      FY20             FY23               FY20              FY23
                                                     diversified portfolio
                                                                                             result          target              result           target
*1 Targeted domains: Overall GCIB + Global Markets S&T (excl. Japanese Corporate sales)                                                                    37
R&C                        DS                    JCIB                       GCB                GCIB                 Global Markets               AM/IS

      Key strategies (1) Strengthen sales & trading business

     Product strategy                                                                         Expand the Trust Bank’s IS-related FX business
                                                                                              ⚫ Expand stock-based FX transactions as a new stable source
Profitability*1                                                                                 of profit
                          Expand cross-selling            Develop solution business                Customer needs                      Contract based FX flow chart
 High                     for institutional investors     on MUFG group basis
                                                                                               Outsourcing of FX operations
                                                                                                 and focus on investment                              Best
                                                                                                        operations                    Fund          execution
        • Expand FX transaction                  Structured                                                                                           data
          in Japan
        • Expand the Trust
                                  Rates,          solutions                                                                        AM company                      the
                                                                                              Strength of the Trust Bank                                        Trust Bank
          Bank’s IS-related FX     credit
                                                                                                  IS business and high                          Automated
          business
        • Strengthen Asia business
                                                   Equity                                       administrative capabilities                     execution of
          with Japanese corporates                                                               (Data coordination with                       FX transaction
                                          Normalization of           Future direction
        • Utilization of EFX                                                                         IS subsidiaries)
                                          market environment                                                                       IS subsidiary
                                                                     Size of the bubble
                                                                     illustrates the
                                                                                               New stable profit model
                  FX                                                 revenue in FY20                                                                Data
                                                                                                                                                   sharing
                                                                                                  Stock-based FX profits
                                                           Revenue growth ratio*2

 Low                                                                        High
                                                                                              Develop solution business on MUFG group basis
                                                                                              ⚫ Strengthen sourcing channels and distribution functions of
     Expand FX transaction in Japan                                                             finance transactions by enhancing the bank-securities dual-
                                                                                                hat organization and sharing of solutions expertise
     ⚫ Provide high-value added products led by product offices
       through integrated operations among business groups,
       expansion of direct-deal customers, etc.                                                                                     Dual-
                                                                                                                                     hat
      ∎ Direct deal
                                                                                                 Customers                    Knowledge sharing                 Investors
               Approx. 150                              Approx. 270
                customers                                customers
                                                                                                                                  Securities

 *1 Revenue per staff (FY20 results) *2 NOP growth rate from FY19 to FY20                                                                                                    38
R&C                             DS                    JCIB                                                              GCB                                   GCIB             Global Markets                   AM/IS

                 Key strategies (1) Strengthen sales & trading business
                                                       P. 32 4 5 7                                                                                    8                                                                                       P. 32                                   6

                       Expand cross-selling for institutional investors                                                                                                                            Expand electronic transaction using EFX platform
           ⚫ Expand the range of products at both domestic and                                                                                                                             ⚫ Enhance business competitiveness by expanding products
             overseas through development of appropriate risk appetite                                                                                                                       through further digitalization
             and enhancement of collaboration on a global basis                                                                                                                                                                  Domestic corporates
                                                                                                                                                                                                             Domestic                                            Margin        Overseas
                                                                        Domestic investors

                                                                                                                                                                                            Customer
                                                                                                      Domestic market
                                                                                                                                                                                                              retail
                                                                                                                                                                                                                                         Financial institution   trader        customer
offering capabilities
Enhance foreign currency products
                                    customer base
                                    Origination leveraging domestic

                                                                                                                              Expand investors base
                                                                                                                                                      from JPY-denominated products
                                                                                                                                                      Strengthen cross-selling beginning
                                                                         (including Asia)

                                                                      Enhance product capabilities       Provide JPY-
                                                                       of JPY / non-JPY products     denominated products

                                                                                                                                                                                           Customer
                                                                                   Strengthen collaboration

                                                                                                                                                                                           interface
                                                                                       on a global basis                                                                                                     Internet    Biz                    MUFG                      COMSUITE
                                                                                                                                                                                                                                                          MBP      API
                                                                                                                                                                                                             banking    Forex                    FX                        Forex
                                                                          Non-JPY products           Expand customer base /
                                                                          O&D / Structure             enhance cross selling

                                                                                                                                                                                                                                                EFX

                                                                                                                                                                                            Pricing system
                                                                         Overseas market             Overseas investors

                                                                                                                                                                                                                           Trading status monitoring, pricing adjustments
                       Strengthen Asian business with Japanese corporates
                 • Strengthen Asian business with Japanese corporates by allocating
                   resources to offices in Asia with higher growth potential                                                                                                                                                                            EFX Desk

                                                                                                                                                                                                                                                        Digitalization ratio of FX
                                                                               Focus on solution business area                                                                                         Ratio of online FX transaction
                                                                                                                                                                                                                                                             rate contracts*1
                                                                                 and strengthen capabilities                                                                               100%                                                  100%
                                                                                                                                                                                                                                      82%84%                                      85%
                                                                                                                                                                                                                                78%                                            76%
                                                                                                                                                                                              80%                                                 80%            71%     72%
                                                                                                                                                                                                                        69%
                                                                                                                                                                                                               57%                                       57%
                                                                                                                                                                                              60%                                                 60%
                Understand the sales
                channel of clients and                                                                  Approach potential deals
                                                                                                                                                                                              40%                                                 40%
            increase share by leveraging                                                                in high growth markets                                                                                 FY17 FY18 FY19 FY20 FY23                  FY17 FY18 FY19 FY20 FY23
              activities towards FX flow                                                                                                                                                                                           plan                                      plan

           *1 Internal transaction                                                                                                                                                                                                                                                        39
R&C                        DS                      JCIB                     GCB                     GCIB           Global Markets          AM/IS

     Key strategies (2) Further sophistication of treasury business
      Market risk management                                                                                  Flexible ALM management (BK treasury)
    ⚫ Manage market risk leveraging each expertise and investment                                            ⚫ Flexible asset allocation and position management
      style in 3 different operations                                                                          among JPY rates, Non-JPY rates, equity, etc.
    ⚫ Focus on ESG investment while assessing the balance between
      risk and return
                                                                                                          ∎ Illustrative asset allocation
                                 Treasury
                                                                                                                    Risk-on                        Risk-off
                                                                           New investment
                 the Bank                   the Trust Bank
                                                                              business
                                                                                                                         Domestic
               Flexible ALM                                              Long-term, diversified                                           Equity              Domestic
                                         Diversified investment                                                           bonds
               management                   on a global basis            portfolio management                                                                  bonds
                                                                                                          Equity
   ∎ History of unrealized gains and gross profits in              Treasury*1
                      Gross profits in Treasury                         Unrealized gains*2                                Foreign
    (¥bn)             Unrealized gains from AFS in Treasury *2                                                             bonds
                                                                         Approx. ¥1.1tn                                                        Foreign
    1,500
   15,000                                                                (end Mar 2021)                                                         bonds

    1,000
   10,000
                                                                    Gross profits in Treasury                Balance sheet management
       500
     5,000                                                                 ¥315.7bn
                                                                                                             ⚫ JPY Balance Sheet
                                                                                                               Expand investments in securities and promote
          0                                                                                                    shifts from savings to investments amid an
                 12      13      14      15      16      17      18      19      20 (fiscal year)              increase in the excess deposits
   ∎ (Reference) UST 10Y yield (as of each fiscal year end)                                                  ⚫ Non-JPY Balance sheet
        3%                                                                                                     Improve profitability by reduction of market
        2%                                                                                                     funding costs, while control liquidity risk stable
        1%
        0%
*1 Managerial accounting basis *2 Bonds, other securities and equity holdings managed by Global Markets business group                                              40
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