Mitsubishi UFJ Financial : Financial Highlights

Financial Highlights under Japanese GAAP for the First Half of Fiscal Year Ending March 31, 2023

November 14, 2022

Mitsubishi UFJ Financial Group, Inc.

FY2022 H1 financial results summary 【Consolidated】

（for Fiscal Year Ending March 31, 2023)

• FY2022 H1 NOP was ¥895.2bn (up by ¥257.7bn YoY), and progress ratio for the FY2022 target of ¥1.3tn was 69%. NOP in customer segments increased by ¥218.4bn YoY as a result of progress of strategies for growth.
• Profits attributable to owners of parent decreased YoY significantly to ¥231.0bn mainly due to losses associated with accounting treatment related to the sale of all shares of MUB. However, considering gains of ¥448.1bn among these losses that will be recorded as an extraordinary gains upon MUB's transfer, profits attributable to owners of parent was ¥679.2bn (progress ratio was 68%) making good progress toward full year target.
• FY22 target of profits attributable to owners of parent remained unchanged at ¥1tn, but the breakdown is revised as follows;
• • NOP +¥200.0bn：Revised upward mainly due to strong NOP performance in H1.
  • Total credit costs ¥(500.0)bn, Ordinary profits ¥(650.0)bn：Reflected valuation losses associated with accounting treatment in connection with our decision to sell all shares of MUB.

Financial

target in the medium-term business plan

MUFG consolidated (¥bn)

1. Gross profits
2. G&A expenses
3. Net operating profits
4. Total credit costs
5. Ordinary profits
6. Profits attributable to owners of parent
7. Considering reversal on MUB transfer
8. ROE
9. Common Equity Tier 1 capital ratio*1

FY2021 H1

Results

1,980.8

1,343.2

637.5

17.9

986.0

781.4

781.4

10.91%

10.4%*3

FY2022 H1

Results YoY

2,323.4 +342.5

1,428.1 +84.8

1. +257.7

(243.8) (261.7)

1. (394.9)

1. (550.3)

679.2 (102.2)

2.91%*2 (8.00)%

9.9% (0.4)%*4

FY2022 full year

Revised	Comparison with
target	initial target
－	－
－	－
1,500.0	+200.0
(800.0)	(500.0)

600.0 (650.0)

1,000.0±0

－－

FY2023 target : 7.5%

Target range : 9.5%-10.0%

*1 Estimated RWA on the finalized Basel III reforms basis. Excludes net unrealized gains on AFS securities. *2 ROE considering reversal on MUB transfer was approximately 8.4%.

*3 As of end of March 2022. *4 Change from end of March 2022.

* Definitions of figures and abbreviations used in this document can be found on the last page

2

Progress on medium-term business plan	【Consolidated】
① Financial targets／Shareholder returns

• Net operating profits in customer segments increased by ¥218.4bn YoY as a result of progress of strategies for growth. We further progressed our resource management such as expenses and RWA.
• FY22 dividend forecast per common stock is ¥32, up by ¥4 from FY21. In addition, considering the impact of capital release associated with the sale of MUB which is expected to occur in this year, repurchase of own shares up to ¥150.0bn was resolved.

	3 Drivers to achieve ROE target	Dividend forecast

Profits

（¥bn）

Dividend per stock

Payout ratio

Net operating profits*1	Profits attributable to owners of parent	25.5%	*8	*9
		32.9% 61.0%	41.3% 31.7% 39.5%

Full

Customer

¥1.4tn

Over

¥32

segments

¥1tn

year

+¥218.4bn

Full

up by

¥32

889.6

781.4

¥4

H1

634.3

year

679.2*2

Year-end

¥28

400.8

¥25

¥25

¥16

Customer

¥22

¥19

segments

H1

231.0

Interim

*3

FY20

FY21

FY22

FY20

FY21

FY22

FY23 target

FY23 target

¥16

Expenses

RWA*7

（¥bn）

（¥tn）

FY17

FY18

FY19

FY20

FY21

FY22

FY20

Perfor

Impact of

129.0

Mar.21

(Forecast)

FX

level*6

Repurchase of own shares

mance-

translation

level

*5

117.8

117.6

*10

linked

Base

*4

1,428.1

expense*4

Impact

1,343.2

expense

1,317.3

of FX

Aggregate amount

Up to ¥150.0bn

translation

of repurchase price

Expense for

+14tn from

business

Mar. 21

Aggregate number

growth*4

FY20FY21

FY22

*3

*3

of shares to be

Up to 300mm shares

FY23 target

Mar. 21 Mar. 22

Sep. 22

Mar. 24 target

repurchased

H1

H1

H1

*1	On a managerial accounting basis *2 Considering reversal on MUB transfer *3 Target as of announcement of the medium-term business plan
*4	On a managerial accounting basis (after adjustment) *5 Approximately +¥111.5bn *6 Excluding performance-linked expenses	*7 Estimated RWA on the finalized
Basel III reforms basis. Includes net unrealized gains on AFS securities *8 37.0% excluding the impact of net extraordinary losses resulting	3
from one-time amortization of goodwill *9 Estimation based on profits attributable to owners of parent of ¥1,000.0bn
*10	As for details, please refer to the press release "Notice Regarding Repurchase and Cancellation of Common Stock" dated on November 14, 2022

∎ Initiatives made progress to update ourselves into a financial and digital platform operator

Progress on medium-term business plan ②key strategies

• Progress smoothly key strategies in medium-term business plan positioned the 3-year term as the "new challenges and transformation".

Corporate

Transfor-

mation

Digital transformation

Contribution to address environmental and social issues

Transformation of corporate culture

Progress

Busikul

Money Canvas

Progmat

D-Canvas

Per-month number of proposals employing Busikul exceeded 100

The cumulative total number of users has grown to more than 1,450thd

Balance of assets managed expects to surpass ¥40bn in FY22

Employees of over 2,300 companies are using the app

Wealth management

• Deepen and explore new fields of open innovation leveraging strategic investment

Strategy

for

growth

Approach of proposing solutions to customer's issues

Asia business

New

Progress

Collaboration on NFT*1

related business Mars Growth Capital

Grab

MUFG Ganesha Fund

Invested US$22.5mm in Animoca Brands KK

Loan agreement signed with 24 startups (USD303mm)

Achieved growth of joint loans balance. Issued jointed credit cards

1st investment was made in Sep. 2022

Structural

reforms

GCIB & Global Markets

Global AM / IS

Cost and RWA control

Transformation of platforms and our business infrastructure

Review of our business portfolios

∎ Transform employee's behaviors to aim for sustainable growth

Initiatives started such as "Spark X" aiming at creating new businesses and "Boost Project" disseminating best practices of whom embody MUFG Way toward within and outside the Group

• Progress in strengthening profitability in each business field by taking advantage of MUFG

		(Approx.)	MTBP target	FY21
		NOP with strategy for	+¥150.0bn*2		+¥215.0bn*3*4
		growth
		NOP with structural	+¥100.0bn		+¥65.0bn*4
		reforms
∎ The sale of MUFG Union Bank to U.S. Bancorp	Progress

*1	Non-fungible token. Data that is unique, cannot be replaced, and can be transferred using blockchain technology
*2	For Asia business, the estimated decrease in net operating profits during FY21 by the impact of market conditions, etc. such as the impact	4
*3	of policy rate cut, is not included in the MTBP target of strategy for growth. The growth from FY22 is included
Exclude losses overseas around (¥30.0bn) *4 Excluding impact of FX translation

24 deals

closed

IRR*2

12%

Fund total

US$500mm

Progress on medium-term business plan ②key strategies

	Money Canvas:	Corporate			Collaboration on NFT related business:
	Asset management platform	Transformation			Invests in Animoca Brands KK

Corporate

Transformation

Structural

reforms

• Released functions associated with fractional shares in Jul 2022 and those associated with insurance in Oct 2022, respectively
• Since the release of the website (Dec 2021), the cumulative total number of users has grown to more than 1,450thd

• In Aug 2022, invested US$22.5mm in Animoca Brands KK which provides platform developing service utilizing block chain related to Web 3.0 and NFT and aim to create business opportunities.

• No. of users (thd)

		1,452
	670
375
Jan 2022	Mar 2022	Sep 2022

Stock / mutual fund Jointly-managed money trust

Crowd-funding

Robo-advisor

Insurance

Investment using points

				•	Enabling and clarifying the
•	Customer network
•	Expertise in safe and		digital ownership of contents
•	Knowledge of the NFT
	secure transactions
		marketplace

Contribution to the competitiveness

of Japanese companies

	Mars Growth Capital:	Corporate
	Provide finance to start-ups	Transformation

• Loan agreement signed with 24 startups
• Considering the further expansion of operations as well as the

development of new businesses

∎ Trend of net cash investment amount (US$ mm)*1

Fund 1		Number of loan
(Dec. 20-)
Fund 2	application

(Jan. 22-)	over 700 deals
303

237

138

0 13 42 50 69

Dec 20Mar 21Jun 21Sep 21Dec 21Mar 22Jun 22 Oct 22

	The sale of MUFG Union Bank	Structural
	to U.S. Bancorp	reforms

October 19, 2022	Obtained all required regulatory
approvals
December 1, 2022	Closing of MUFG's sale of MUB to U.S.
Bancorp (Expected)

5

*1 Aggregate net commitment amount of the transactions considering amortizations during investment period *2 As of end Jun. 2022