Mitsubishi UFJ Financial : Investor Meeting Presentation - Fiscal Year Ended Mar. 2020 (May 20, 2020)

FY2019 IR presentation

May 20, 2020

Mitsubishi UFJ Financial Group, Inc.

Disclaimer

This document contains forward-looking statements in regard to forecasts, targets and plans of Mitsubishi UFJ Financial Group, Inc. ("MUFG") and its group companies (collectively, "the group"). These forward-looking statements are based on information currently available to the group and are stated here on the basis of the outlook at the time that this document was produced. In addition, in producing these statements certain assumptions (premises) have been utilized. These statements and assumptions (premises) are subjective and may prove to be incorrect and may not be realized in the future. Underlying such circumstances are a large number of risks and uncertainties. Please see other disclosure and public filings made or will be made by MUFG and the other companies comprising the group, including the latest kessantanshin, financial reports, Japanese securities reports, Integrated reports and annual reports, for additional information regarding such risks and uncertainties. The group has no obligation or intent to update any forward-looking statements contained in this document. In addition, information on companies and other entities outside the group that is recorded in this document has been obtained from publicly available information and other sources. The accuracy and appropriateness of that information has not been verified by the group and cannot be guaranteed. The financial information used in this document was prepared in accordance with Japanese GAAP (which includes Japanese managerial accounting standards), unless otherwise stated. Japanese GAAP and U.S. GAAP, differ in certain important respects. You should consult your own professional advisers for a more complete understanding of the differences between U.S. GAAP and Japanese GAAP and the generally accepted accounting principles of other jurisdictions and how those differences might affect the financial information contained in this document. This document is being released by MUFG outside of the United States and is not targeted at persons located in the United States.

Definitions of figures used in this document

Consolidated：	Mitsubishi UFJ Financial Group (consolidated)
Non-consolidated：	Simple sum of MUFG Bank (non-consolidated) and Mitsubishi UFJ Trust & Banking Corporation (non-consolidated)
the Bank (consolidated)：	MUFG Bank (consolidated)
MUFG:	Mitsubishi UFJ Financial Group	Bank Danamon (BDI):	Bank Danamon Indonesia
the Bank (BK):	MUFG Bank
FSI:	First Sentier Investors
the Trust Bank (TB):	Mitsubishi UFJ Trust & Banking Corporation
R&C:	Retail & Commercial Banking
the Securities HD (SCHD):	Mitsubishi UFJ Securities Holdings
JCIB:	Japanese Corporate & Investment Banking
MUMSS:	Mitsubishi UFJ Morgan Stanley Securities
GCIB:	Global Corporate & Investment Banking
MSMS:	Morgan Stanley MUFG Securities
GCB:	Global Commercial Banking
NICOS:	Mitsubishi UFJ NICOS
AM/IS:	Asset Management & Investor Services
MUAH:	MUFG Americas Holdings Corporation
KS:	Bank of Ayudhya (Krungsri, KS)

2

Key messages

FY19 result and FY20 target

∎FY19 result	: ¥528.1bn in net profit. Behind the target mainly due to one-time amortization of goodwill
∎FY20 target	: ¥550bnin net profit under certain assumptions. Credit cost forecast is ¥450bn

Management principles as CEO

∎Response to : Accomplish MUFG's social responsibilityby providing financial services

COVID-19
∎Strategic	: Prioritize 3 strategies, considering the impact of COVID-19 and our challenges
emphasis

Major existing initiatives

∎Progress : Accelerateshift of sales channel, cost control and RWA*1control

Capital policy

∎Capital level	: Maintain sufficient capital level even with the future RWA*1accumulation
∎Shareholder	: DPS for FY19 is ¥25 (up ¥3 YoY).DPS for FY20 (forecast) is ¥25, same as FY19
returns
*1 Risk-Weighted Asset	3

Contents

FY19 financial results	5
Management principles as CEO	24
Major existing initiatives	31
Capital policy	38
Appendix	44

4

FY19 financial results

5

FY19 financial results

Management

principles as CEO

Major existing initiatives

Capital policy

FY19 financial results

－Net profits were ¥528.1bn, mainly due to net extraordinary losses resulting from one-time amortization of goodwill of overseas consolidated subsidiaries

Consolidated (¥bn)

1Gross profits

before credit cost for trust accounts

1. G&A expenses
   Net operating profits
2. before credit costs for trust accounts and provision for

general allowance for credit losses

1. Total credit costs
2. Ordinary profits
3. Profits attributable to owners of parent

FY18

Results

3,725.7

2,647.1

1,078.5

(5.8)

1,348.0

872.6

	FY19
Initial	Results	YoY	vs. initial
targets	targets
－	3,986.3	260.5	－
－	2,801.8	154.7	－
1,080.0	1,184.4	105.8	104.4
(230.0)	(222.9)	(217.1)	7.0
1,280.0	1,235.7	(112.2)	(44.2)
900.0	528.1	(344.5)	(371.8)

6

FY19 financial results

Management

principles as CEO

Major existing initiatives

Capital policy

Financial targets

－Continue to make sustained efforts to achieve the targets, although FY20 outlook for operating environment is uncertain

FY17

FY18

FY19

FY20

Mid- to long-

results

results

results

targets

term targets

Approx.

9～10%

7.53%

6.45%

7% - 8%

ROE

3.85%

Expense ratio

68.0%	71.0%	70.2%	Below FY17
		results	Approx. 60%

CET1 ratio	11.7%	11.4%	11.7%
	Approx. 11%
(Finalized Basel III

reforms basis*1)

*1 Estimated CET1 ratio reflecting the RWA increase calculated on the finalized Basel III reforms basis, includes net unrealized gains on AFS securities

7

FY19 financial results

Management

principles as CEO

Major existing initiatives

Capital policy

Profits attributable to owners of parent

－Net profits excluding one-time amortization of goodwill were virtually unchanged from FY18

	Historical performance				Consolidated		Contribution from subsidiaries, etc.*1Consolidated
	（¥bn）																	(¥bn)
				1,033.7						989.6
984.8									One-time amortization of		Morgan
951.4
				926.4				goodwill of BDI and KS
												(343.3)			Stanley
																225.6
															872.6

				Others*2
				(32.2)
				ACOM
				NICOS 23.5
				63.9
			BDI	SCHD	MUFG
		KS	21.1
		22.5		consolidated
528.1		96.8
			528.1
BK		MUAH
270.0	TB	66.8		One-time amortization of
excl.			goodwill of BDI and KS
impairment	113.0			(343.3)
losses*2on
shares of BDI
and KS

FY13 FY14 FY15 FY16 FY17 FY18 FY19

*1	The figures reflect the percentage holding in each subsidiary and equity method investee	8
*2	Impairment losses on shares of BDI and KS are ¥923.0bn. In the consolidated figures, the impairment losses are eliminated

FY19 financial results

Management

principles as CEO

Major existing initiatives

Capital policy

Main reasons of not achieving the FY19 target

－FY19 target was not achieved, due to one-time amortization of goodwill, a volatile stock market movement and the recording of precautionary provisions for credit losses

	Impact
（¥bn）	amount
One-time	(343.3)	Share price at the end of March 2020 declined by more than 50% compared
amortization of	to acquisition cost
goodwill*1		（Breakdown：BDI 212.8, KS 130.5）

Volatile stock	Impairment losses on equity holdings
market movement	(65.0)Impairment losses on share of equity-method affiliate, Security Bank
in FY19 Q4*2	(21.3, goodwill equivalent)

Provisions for the

impact of	(35.0)Recorded precautionary provisions for credit losses
COVID-19*2
*1 No impact on regulatory capital *2	Approx. amount of effect on net profits	9

FY19 financial results

Management

principles as CEO

Major existing initiatives

Capital policy

Results by business group (1)

－Net operating profits upturned for the first time in five fiscal years

Net operating profits in customer segments increased for two consecutive fiscal years

	Net operating profits by business group*1Consolidated		Changes by business group

Consolidated

（¥bn）			（¥bn）					Others
	FY19 ¥1,175.0bn*2					Global
					+13.31,175.0
							Markets
							+86.7
Global	R&C
Markets			Total of customer
	343.0	298.6
		segments +2.7
	(26%)	(23%)
					GCB
						+25.7
			1,072.3
	71.3	235.3	R&C	JCIB			AM/IS
AM/IS			(7.1)
(5%)	(2.0)	(0.6)
(18%)	GCIB
	232.8		JCIB		(13.4)
	(18%)	129.0	(0.6)	+4.4	+0.9	+19.1	(7.2)
	Changes excluding impact of
		(10%)
	GCB	FX fluctuation (total +16.6)
		GCIB	FY18					FY19

*1	All figures are in actual exchange rate and managerial accounting basis	10
*2	Including profits or losses from others

FY19 financial results	Management	Major existing initiatives
principles as CEO

Results by business group (2)

Capital policy

ConsolidatedBusiness group

Retail & Commercial	R&C
Banking
Japanese Corporate	JCIB
& Investment Banking
Global Corporate	GCIB
& Investment Banking
Global Commercial	GCB
Banking
Asset Management	AM/IS
& Investor Services
Global Markets	Global
Markets

Net operating profits (¥bn)

FY18	FY19	Changes
300.7	298.6	(2.0)
235.9	235.3	(0.6)
142.3	129.0	(13.4)
207.0	232.8	25.7
78.4	71.3	(7.1)
256.3	343.0	86.7

Expense ratio

FY18 FY19

80% 80%

57% 57%

63% 66%

70% 71%

61% 71%

47% 40%

ROE*1

FY18 FY19

1%*2 9%*3

[1%] [10%]

15% 12%

[15%] [12%]

10% 8%

[10%] [8%]

6%(17%)*4

[8%][(14%)]

8%*5 19%

[10%] [22%]

5% 6%

[5%] [6%]

*1 Calculated based on Risk Assets (R&C, JCIB, GCIB and GCB) or economic capital (AM/IS and Global Markets) (Managerial accounting basis. Net profit basis. Calculated excluding non-JPY mid- to long-term funding costs) Figures in brackets exclude the impacts of investment related accounting factors (amortization of goodwill, etc.)

*2 ROE excluding the impact of impairment losses on fixed assets of NICOS is 6%*3 ROE excluding the impact of one-time effects of corporate tax refund is 6%

*4 ROE excluding the impact of one-time amortization of goodwill and impairment loss is 5%*5 ROE excluding the impact of losses on sales of Standard Life Aberdeen shares is 18%

11

FY19 financial results	Management
principles as CEO

Balance sheet summary

	Balance sheet summary	Consolidated
	As of end Mar 2020

Major existing initiatives

Capital policy

	Loans (period end balance)	Consolidated
（¥tn）
Overseas: +1.6 from end Mar 2019, including +1.0 for BDI
		(+2.9 excluding impact of FX fluctuation)

Assets ¥336.5tn

Loans

(Banking + Trust accounts)

¥109.4tn

Investment

Securities

(Banking accounts)

¥65.5tn

Liabilities

¥319.7tn

Deposits

¥187.6tn

Net assets

¥16.8tn

109.2	108.3	107.7	109.4		Consumer finance
			1.5	2.2	2.5	2.5		/ Others
				Overseas*3
			43.4	42.9	42.8	44.4
				Government
			4.2	3.7	3.2	3.0
				Domestic
			44.2	43.9	43.9	44.6		corporate*1*2
			15.7	15.4	15.1	14.8		Housing loan*1
		End Mar 17	End Mar 18	End Mar 19	End Mar 20
	Deposits (period end balance)		Consolidated
（¥tn）
	Overseas: +1.5 from end Mar 2019, including +0.8 for BDI
					(+2.8 excluding impact of FX fluctuation)
170.7	177.3	180.1	187.6
	Overseas and
							41.7
			36.5	38.8	40.1	others
						63.0	66.5	Domestic
			61.0	63.1	corporate etc.*4
							79.3	Domestic
			73.0	75.3	77.0	individual*4
		End Mar 17	End Mar 18	End Mar 19	End Mar 20

*1	Non-consolidated + trust accounts *2 Excluding loans to government and governmental institutions and including foreign currency denominated loans
	(Excluding impact of FX fluctuation: +¥0.7tn from end Mar 2020)	12
*3	Loans booked in overseas branches, MUAH, KS, BDI, the Bank (China), the Bank (Malaysia) and the Bank (Europe) *4 Non-consolidated

FY19 financial results

Management

principles as CEO

Major existing initiatives

Capital policy

Domestic loans

	Loan balance (period end balance)*1	Consolidated		Deposit / lending rate*4*5	Non-consolidated

（¥tn）	Housing loan		SME*2*3			Lending rate
Large corporate*2	Government
		1.0%	Deposit / lending spread
				+0.1 from end Mar 2019		Deposit rate
				(+0.2 excluding impact of FX fluctuation)		0.81%
	64.2						0.80%	0.80%	0.79%	0.78%
	63.2	62.3	62.5	0.8%
					0.80%
	4.2	3.7		3.2	3.0		0.79%	0.79%	0.78%	0.78%
							0.00%	0.00%	0.00%	0.00%	0.00%
						0.0%
	20.6	20.0	20.7	21.2	FY17	FY18				FY19
	Q4	Q4				Q4

	Corporate lending spread*2*4*5*6	Non-consolidated

				0.8%	Large corporate	SME
23.6	23.9	23.2	23.3
				0.6%		0.56%	0.55%	0.54%	0.54%	0.54%
15.7	15.4	15.1	14.8			0.42%	0.43%	0.44%	0.44%	0.43%
				0.4%
					FY17	FY18				FY19
End Mar 17	End Mar 18	End Mar 19	End Mar 20		Q4	Q4				Q4

*1	Sum of banking and trust accounts	*2 Including non-JPY loans
*3	Domestic loans to small / medium-sized companies and proprietors (excluding domestic consumer loans)
*4 Managerial accounting basis *5 Excluding lending to government etc.	13
*6	Figures for FY19Q2 were corrected

FY19 financial results

Management

principles as CEO

Major existing initiatives

Capital policy

Overseas loans

Loan balance (period end balance)

Consolidated		Change in deposit / lending rate*2	Non-consolidated

（¥tn）					Lending rate
Americas	EMEA	+1.6 from end Mar 19,		Deposit / lending spread	3.21%	3.18%	2.96%
including +1.0 for BDI		Deposit rate			2.72%
Asia / Oceania	MUAH	3.0%
(+2.9 excluding impact of FX fluctuation)						2.38%
KS	BDI
Others *1						1.87%	1.91%	1.82%	1.56%
			44.4	2.0%				1.34%
43.4
42.9	42.8
0.1
0.5	0.3	0.1	1.0	1.0%		1.34%	1.27%	1.14%	1.15%	1.04%
3.6	4.0	4.2	4.8
				0.0%
8.8				FY17		FY18				FY19
8.8	9.4	9.5	Q4		Q4				Q4

Net interest margin

MUAH / KS / BDI

12.2	12.7	12.3	11.9
	MUAH*3	KS*4	BDI*5
				10.0%		9.0%	8.4%			8.4%
							8.0%	8.1%
7.6	7.8	7.6	7.4
			3.95%	3.79%	3.58%	3.61%
				4.0%		3.52%
				2.0%		2.19%	2.06%	2.00%	1.92%	1.99%
10.5	9.1	8.9	9.5
				0.0%
End Mar 17	End Mar 18	End Mar 19	End Mar 20	FY17		FY18				FY19
Q4		Q4				Q4

*1	Loans booked at offshore markets etc. *2 Managerial accounting basis *3	Financial results as disclosed in MUAH's 10-K and 10-Q reports based on U.S. GAAP	14
*4	Financial results as disclosed in KS's financial reports based on Thai GAAP	*5 Financial results as disclosed in BDI's financial reports based on Indonesia GAAP

FY19 financial results	Management
principles as CEO

Investment securities (1)

		AFS securities*1with fair value		Consolidated
(¥bn)
						Balance	Unrealized gains
						(losses)
							Changes		Changes
						End Mar 20	from end	End Mar 20	from end
							Mar 19		Mar 19
1		Total	62,151.1	1,572.5	2,888.6	(447.0)
2			Domestic equity	4,141.3	(812.0)	2,139.9	(624.3)
		securities
3			Domestic bonds	27,473.1	211.9	171.3	(186.1)
4				Japanese	20,643.0	(899.2)	123.9	(155.0)
			government
					bonds (JGB)
5			Foreign bonds	24,502.4	2,969.5	738.1	564.4
6			Others	6,034.2	(796.8)	(160.8)	(201.0)

*1 Available for sale securities

Major existing initiatives

Capital policy

Unrealized gains / losses on AFS securities*1Consolidated

Domestic equity securities

(¥tn)Domestic bonds Foreign bonds and Others

3.62	3.51	3.56		3.67
	0.23	3.33
0.22
0.30		0.59
0.28		0.21
		2.88
			0.35
			0.37
				0.57
				0.17
	3.22	3.49
3.11
			2.76	2.69
				2.13

		(0.00)	(0.16)
		End	End	End	End	End
	End
Sep 17	Mar 18	Sep 18	Mar 19	Sep 19	Mar 20

15

FY19 financial results	Management
principles as CEO

Investment securities (2)

		JGB balance*1and duration		Non-consolidated
(¥tn)
					Over 10 years				5 years to 10 years
					1 year to 5 years				Within 1 year
					Average duration (year)*2			3.3	3.5
2.5	2.5	2.8	2.5
						23.6		22.7
21.7	1.4	21.7	21.7
1.8	20.2
1.6	3.6	1.4	2.6
2.1
2.5		3.1	2.6	1.1
										1.3
6.0	7.7		7.1	3.7	7.5
9.0

11.4	10.8		11.6	12.4	10.3
	8.1
End	End	End	End	End	End
Sep 17	Mar 18	Sep 18	Mar 19	Sep 19	Mar 20

Major existing initiatives

Capital policy

Foreign bond balance*1and duration Non-consolidated

(¥tn)
		Over 10 years		5 years to 10 years
		1 year to 5 years		Within 1 year

Average duration (year)*2
			6.0
		5.7	5.5
	5.4
4.9	5.1

					21.6
			19.3	19.1
16.9
	15.1	14.9		8.5	10.8
5.5			9.4
	5.2	6.4
5.3	4.3		5.3	5.8	5.4
	3.6
3.9	3.2	2.7	2.5	2.4	2.9
2.0	2.2	2.1	2.0	2.3	2.5
End	End	End	End	End	End
Sep 17	Mar 18	Sep 18	Mar 19	Sep 19	Mar 20

*1	Available for sale securities and securities being held to maturity	16
*2	Available for sale securities

FY19 financial results

Management

principles as CEO

Major existing initiatives

Capital policy

Non-JPY liquidity*1

－Non-JPY loans are stably funded by deposits and mid- to long-term market funding

（US$bn）

As of end Mar 2020

Loan and deposit balance over FYE (daily)

			（US$bn）		Loans			Deposits
			370		300
			350				280
	Deposits
	（incl. deposits	330				260
Loans	from central
banks）		310				240
351		End Feb	End Mar	End Apr	End Feb	End Mar	End Apr
253
		20	20	20		20	20	20
			Historical loan and deposit balance
	Mid-to long term	（US$bn）				Loans	Deposits
				Loans & deposits gap	(RHS)
	market funding	400				200
	162		300							100
	Corp bonds/	63
	loans
	Collateralized	31	200							0
	funding, etc.	End Mar 18		End Mar 19	End Mar 20
							Avg. tenor
	Mid-long term			TLAC eligible senior debt
	69		etc.				approx. 7yrs
	currency swaps
				Cross-currency repos*2
				(utilizing JGB) etc.		Major tenor
				Currency swaps are		approx. 3-5yrs
				transacted mainly in mid-

*1	The Bank consolidated excl. MUAH, KS and BDI. Managerial basis	term durations
17
*2	Repurchase agreement in which denominated currency is different in cash transaction and security

FY19 financial results

Management

principles as CEO

Major existing initiatives

Capital policy

Risk-monitored loans*1

－The balance and ratio slightly increased mainly due to consolidation of BDI, still in low level

	2.24%	2.20%		Risk-monitored loan ratio*2
25,000	2.12%
2.08%
1.80%	1.66%			1.67%
20,000	1.44%	18,641	1,944.4	1.40%	1.45%	1.41%
1,766.0 1,792.5
(¥bn)			1,705.5	1,655.8		1.17%	0.99%
				1,539.9	1,539.2	0.90%
1,530.8	15,297
15,000	1,276.6						1,271.7
								1,089.8
10,000							967.0

5,000

0

			End	End	End	End	End	End	End	End	End	End	End	End	End	End
［Breakdown*3］Mar 07	Mar 08	Mar 09	Mar 10	Mar 11	Mar 12	Mar 13	Mar 14	Mar 15	Mar 16	Mar 17	Mar 18	Mar 19	Mar 20
		EMEA*4
		18.1	21.2	42.6	136.3	121.2	127.2	122.0	126.3	88.2	133.9	116.0	71.3	64.0	63.7
		Americas*5
		54.9	24.8	81.2	147.3	110.3	89.2	125.0	114.9	100.7	199.4	216.0	157.5	148.2	145.5
		Asia*6
		13.5	13.1	15.4	14.4	9.4	14.4	17.0	89.0	108.8	145.3	142.3	155.8	170.3	259.1
		Domestic	1,444.2	1,217.3	1,390.5	1,467.9	1,551.5	1,633.2	1,680.3	1,375.2	1,242.0	1,177.1	1,064.7	887.0	584.3	621.3

*1	Risk-monitored loans based on Banking Act *2 Total risk-monitored loans / total loans and bills discounted (banking accounts as of period end)
*3	Based on the locations of debtors
*4	End Mar 2007	- End Mar 2012 includes parts of other regions
*5	End Mar 2007	- End Mar 2012 includes only US	18
*6	The figure of Asia as of end Mar 2020 includes approximately ¥43.0bn for BDI

FY19 financial results

Management

principles as CEO

Major existing initiatives

Capital policy

Credit costs

－Credit costs for FY19 were ¥222.9bn. Total credit costs forecast for FY20 is ¥450.0bn

(¥bn)

FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

Reversal of

11.8

credit costs

Increase in
credit costs				(115.6)
	(75.6)			(161.6)
	(261.7)		(193.4)	(0.01%)
Average			(255.1)
0.09%	(354.1)		0.13%	0.15%
credit cost ratio
		0.23%	0.22%
from FY06	0.30%
	(570.1)	0.44%
	0.62%			Total credit costs*1
	(760.1)
			Credit cost ratio*2
		0.90%

Breakdown of FY20 credit costs of ¥450.0bn

(155.3)	(46.1)	(5.8)
0.14%	0.04% 0.01%

Non- consolidated

CF*3

Overseas*4

Others*5

(222.9)

0.20%(450.0)

Amount of impact by COVID-19: ¥200.0bn

Ordinary credit costs	¥250.0bn	•Almost same level as FY19 result
Amount of impact by	¥200.0bn	•Include the impact corresponding to relevant business model of each
COVID-19	entity（Recorded the precautionary provision of ¥50.0bn in FY19）

• The Bank: Stricter credit control for real estate and micro business loan

		Difference of the	Domestic •	CF: Enforcement of lending restrictions by law. Recorded provision for loss caused by
		portfolio from the			requests for interest repayment*6
		global financial		•	Increase in loan balance for non-Japanese corporates
		crisis	Overseas	Next page
		•	Added new portfolio in Asia by consolidation of KS and BDI
*1	Including gains from write-off	*2 Total credit costs / loan balance as of end of each fiscal year *3	Sum of NICOS and ACOM on a consolidated basis
*4	Sum of overseas subsidiaries of the Bank and the Trust Bank *5 Sum of other subsidiaries and consolidation adjustment		19
*6	From FY10, accounting item has changed from credit costs to reserve for contingent losses

FY19 financial results

Management

principles as CEO

Major existing initiatives

Capital policy

Specific credit portfolio

	Energy and mining*1	Page 56
	Credit exposure*2	¥7.9tn
	% of total exposure*3	Approx. 7%
	vs. Mar 2016	Down 2ppt from approx. 9%

Exposure to upstream	¥2.3tn
sub-sector*4

Air transportation(incl. aircraft finance)*1Page 57

Credit exposure*2	¥1.8tn
% of total exposure*3	Approx. 1.6%
% of exposure with	Approx. 78%
collateral and guarantee
Aircraft collaterals	Consist mostly of models with
high liquidity

Partner banks

Page 52 to 55

			MUAH	KS	BDI
Loan amount*5	¥9.7tn*6	¥6.2tn*7	¥0.9tn*8
(Approx. 9%*9)	(Approx. 6%*9)	(Approx. 1%*9)
NPL ratio*5		0.36%	2.22%	3.40%
Credit costs*10		¥51.1bn*11	¥31.7bn*12	¥7.6bn*13
*1	All figures on managerial accounting basis, aggregating internal management figures of each subsidiary *2 Including undrawn commitment and excluding
market exposure *3 The Bank consolidated (excl. KS, BDI) and the Trust Bank. Including undrawn commitment and excluding market exposure
*4	Exploration, development and production of oil and gas *5 Figures of each partner bank at FY20Q1 *6 US$89,786mm	*7 THB1,869,963mm
*8	IDR147,028bn *9	% of MUFG total loan amount (the Bank consolidated, the Trust Bank, NICOS, ACOM) *10 Amount of each partner bank at FY20Q1, based

on relevant accounting standard. For reference, MUFG will include partner banks credit costs (including the CECL impact) approximately ¥90.0bn in FY20Q1
*11 USD470mm *12 THB9,510mm *13 IDR1,148bn	20
(Note) Exchange applied for the calculation for *5 and *10 is as follows. US$1=¥108.83, THB1=¥3.34, IDR1=¥0.0067

FY19 financial results

Management

principles as CEO

Major existing initiatives

Capital policy

Capital

－CET1 ratio is expected to remain at sufficient level even in light of future RWA accumulation

		CET1 ratio		Consolidated
			12.5%	12.2%	11.9%
		Net
unrealized
gains on AFS	10.1%	10.0%	9.8%
	securities

End Mar 18*1

End Mar 19

End Mar 20

CET1 ratio(Finalized Basel III reforms basis*2) Consolidated

	11.7%	11.4%	11.7%
Net
unrealized	9.5%	9.3%	9.6%
gains on AFS

securities

End Mar 18

End Mar 19

End Mar 20

			FY19 results			Consolidated
			(¥bn)	End	End
			Mar 19	Mar 20	Changes
1		Common Equity Tier 1	14,322.4	13,708.3	(614.0)
	capital
2		Additional Tier 1 capital	1,953.8	1,914.9	(38.9)
3	Tier 1 capital	16,276.3	15,623.3	(652.9)
4	Tier 2 capital	2,493.4	2,656.2	162.7
5	Total capital (Tier 1+Tier 2)	18,769.7	18,279.5	(490.2)
6	Risk-weighted assets	117,091.1	115,135.6	(1,955.5)
7		Credit risk	90,843.0	88,791.7	(2,051.3)
8		Market risk	2,920.5	3,150.7	230.1
9		Operational risk	8,107.2	8,269.2	162.0
10		Floor adjustment*3	15,220.2	14,923.8	(296.3)
11	Total exposures	329,048.6	353,117.5	24,068.8
12		Leverage ratio	4.94%	4.42%	(0.52ppt)

*1 Estimated CET1 ratio calculated on the basis of current regulations applied
*2	Estimated CET1 ratio reflecting the RWA increase calculated on the finalized Basel III reforms basis	21
*3	Adjustments made for the difference between risk-weighted assets under Basel I and Basel III

FY19 financial results

Management

principles as CEO

Major existing initiatives

Capital policy

FY20 targets

• TheCOVID-19 pandemic is expected to have a further impact on our business as economic and corporate activity deteriorates and the financial market remains volatile. Although it is difficult to make forecast at present, we set FY20 targets based on the economic outlook with certain assumptions (assumptions are described on the next page).
• If actual timing of containment of the virus and the degree of the impact on the real economy are different from our assumptions, FY20 targets may be revised or differ from the actual results significantly.

Consolidated

(¥bn)

Net operating profits

before credit costs for

1trust accounts and provision for general allowance for credit losses

2Total credit costs

3Ordinary profits

Profits attributable

4to owners of parent

FY19

results

1,184.4

(222.9)

1,235.7

528.1

FY20Estimated

targetsimpact of COVID-19*1

1,050.0 (300.0)

(450.0) (200.0)

850.0 (600.0)

550.0 (420.0)*2

Major impact that may arise

or be anticipated by the COVID-19 pandemic

Decline in foreign currency	Decline in new investments
interest income	and business transactions
Decrease in assets under	Decreased investor appetite
custody or management	for investment

Restrictions on our business activities

Worsening business performance of borrowers

Decrease in equity earnings in equity method investees and decline in other non-recurring gains (losses) etc.

*1 Comparison with targets assuming no COVID-19 pandemic *2 Calculated by using aproximate tax rate of 30%

22

FY19 financial results

Management

principles as CEO

Major existing initiatives

Capital policy

Assumption for FY20 targets

－While the depth and longevity of the COVID-19 impact on the real economy are still uncertain, FY20 targets are set based on economic environment outlook with some assumptions

Business environment

Governments around the world have launched emergency monetary and financial policies aimed at assisting businesses with their fundraising efforts and supporting household income during the crisis. Meanwhile, financial institutions have been able to maintain soundness compared with global financial crisis caused by a liquidity crunch. As a result, they are in a position to provide businesses with finance support. At the moment, although strict public health measures currently in place to prevent the spread of the virus are expected to be relaxed in some regions, there is a sense of uncertainty as to whether or not economies will be able to smoothly regain their previous vitality. Therefore, it is believed that the normalization of economic activities will take some time in such regions as mainly developed countries.

Set FY20 targets based on the economic environment outlook reflecting four assumptions below

1

Depth of decline

[GDP outlook*1(Jan-Mar 2019=100)]

Assume economic activity decreases by about 5 to 10%

110

compared to the annual average for 2019

World

Developed countries

105

Developing countiries

Japan

2

Longevity of deterioration

100.0

99.9

Assume deterioration of economic activity will be

100

most extreme in Apr-Jun 2020 and recovery will

101.3

start from Jul-Sep 2020

95

3

Recovery pattern

Assume a U-shaped recovery will materialize, but at

90

slower pace than recovery after global financial crisis

85

（Calendar year）

4

Timing of recovery

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

Assume overall world economy will recover to 2019

level at the end of 2020, developed countries'

2019

2020

2021

economy will recover to 2019 level at the end of 2021

23

*1 Made by MUFG referring to, among other things, the baseline scenario of the IMF World Economic Outlook released in Apr 2020

Management principles as CEO

24

FY19 financial results

Management

principles as CEO

Major existing initiatives

Capital policy

Our "Social Mission" vs. COVID-19

• As the infection spreads widely to the real economy, we believe that it is our responsibility and social missionto continue supporting our customers and society through financial services
• Puttingtop priority on ensuring the safety of all of our stakeholders and maintaining stable financial services, we will satisfy the various financial needs from our customers swiftly, appropriately and flexibly

Ensure the safety of	Maintain stable	Extend swift,
appropriate and
all our stakeholders	financial services	flexible finance
		support

Approx. 180,000 employees strive to maintain operations

domestically and in more than 50 countries abroad

25

FY19 financial results

Management

principles as CEO

Major existing initiatives

Capital policy

Our response to COVID-19

－Our rapid response includes the steps taken below. As a financial group, our social mission is the top priority

Branch

management

Finance support

Digitalization/

non-

face-to-face transactions

Social

contributions

Working remotely

Dispatch of 1,000+ personnel*1from Head Office to domestic branches and back-office centers. No halt or contraction in the Bank/the Trust Bank domestic operations; financial infrastructure preserved

• No. of consultations with large, medium & small corporates :Approx. 10,000*2

•No. / amount of newly booked loans	:Approx.３,000 / ¥2.5tn*3
Indiv	No. of IB*4service users	:Approx. 3 times*5
Corp	No. of Biz LENDING*6applications	:Approx. 3 times*7

• Donation to Japanese Red Cross Society (¥500mm) / Support for the continuation of students' daily life & school and cultural activities（¥2bn）
• Healthcare industry support for research, development and manufacture of therapeutic drugs and vaccines, etc.（establishing a¥10bn investment fund）

Japan: approx. 50%, U.S/Europe: approx. 80-90%,

Asia: expanding on a region-by-region basis

*1 Includes future plans *2 Number of new loans and amendments from Mar 10 to May 8, 2020. Based on the reports from the Bank's domestic branches and online application

*3	Event counts/amounts conducted between Mar 10 and May 8, 2020（includes commitment line limits). Based on the reports from the Bank's domestic branches
*4	Mitsubishi UFJ DIRECT: Internet banking for individual customers *5 Prior month comparisons between Mar 2019 and Mar 2020	26
*6	MUFG Biz: lending services via internet banking for corporate customers *7 Comparison between Nov 2019 and Mar 2020

FY19 financial results

Management

principles as CEO

Major existing initiatives

Capital policy

Changes in social trends

－Megatrends will accelerate sharply due to COVID-19 response

Pre-existing social environment

（megatrend）

Low economic growth/prolonged low

interest rates

Changes in individual and

corporate behavior

Digitalization rollout

Stakeholder capitalism/stronger

focus on SDGs

Workstyle reforms

COVID-19-induced elements

Digital shift in society as a whole

Heightened awareness of social

issues/social contributions

Changes in and diversification of

workstyles and values

Changes in globalization

（supply chain structure, etc.）

Main themes for		Response to	Contribution to
financial
	societal digital shift	solution for social issues
institutions

27

FY19 financial results

Management

principles as CEO

Major existing initiatives

Capital policy

Societal structural changes and expectation of MUFG

－Actively respond to changes assuming irreversible influence on social structure including public values and customer behavior

Response to societal digital shift

Contribution to solution for social issues

Digital shift offers an opportunity for the company to change its core state

Acceleration of social issue embracement, contribution to sustainable social growth

Innovation of MUFG as a whole,

including customer interface, employee

workstyle, etc.

Direction of digital shift

• Expanding nonface-to-face functions and Custom- usage
  ers •Smart transaction flow via digitalization of processes
• Remote work, etc./maintaining a comfortable Emplo- work environment
  yees •Plans for replacing personnel seals/physical authentification means

Mgmt	•Digitalization as a premise for operational
shift from former paper-and large building-
style
centered commuting

Combining social issue resolution with

MUFG's strategy; tackling MUFG's

sustainable growth

	Direction of sustainability management
Social	•Elevating focus on healthcare & education,
etc. and responding to specific social areas
Environ-	•Accelerating company action to
ment	address/financially support combating
climate change as a global threat

• Strengthening corporate governance
  Govern- system on a group-wide,cross-regional

ance	basis, raising governance to an even higher
	level

28

FY19 financial results

Management

principles as CEO

Major existing initiatives

Capital policy

The total strategic picture

－Prioritize strategy, based on COVID-19 trends & company issues

Pre-existing social

environment（megatrend）

COVID-19-induced elements

Existing MUFG		Societal structural			Strategic emphasis
strategy		changes &
		expectations of			•	Domestic retail
Reorganization of		MUFG
			•	Global strategy
business groups into
				•	Business infrastructure/
new customer segments
	Response to				process
Transformation		societal digital shift
initiatives,
digitalization strategy					Continuing existing initiatives
Capturing		Contribution to			•	Shift of sales channel
	solution for social
overseas market growth				•	Cost control
	issues
				•	RWA control

MUFG's issues

Very large and complex	Low profitability/high	Tight management
organization/	resources due to company-
expense ratio/low ROE
branches/systems, etc	wide expansion

29

FY19 financial results

Management

principles as CEO

Major existing initiatives

Capital policy

Strategic emphasis

－New company management policy leads the following strategic emphases

Management

policy

⚫Digitalizationto the company core	Customer interface, stronger proposals, workstyles

• Focus onbusiness resilienceEnsure financial soundness, allocate resources to strong field

⚫"Engagement"-centered mgmt	Empathy, company attractiveness, participation awareness

Digitalization of domestic

retail business

• Digitalizationof customer interface, sales channels, middle & back offices
• Strengthen business promotion proposal abilityto address customers' individual needs

Reshaping global strategy

• Evaluation ofregion-by- region growth prospects & strengths, optimizing resource allocation
• Collaboration with such company as Grab to take onnext-genfinancial services

Business infrastructure,

process innovation

• Raising efficiencyby making operating processes paperless, halting personal seal use, etc
• Developing business infrastructure & work environment, based on employees'diverse values and workstyles

Major existing	Shift of sales	Cost control	RWA control
initiatives	channel

30

Major existing initiatives

31

FY19 financial results

Management

principles as CEO

Major existing initiatives

Capital policy

Continuing major existing initiatives

Shift of sales

channel

Cost control

RWA control

[FY19 results]	Steady progress in shifting to non face-to-face
	channels	P.33
[FY20 onward]	Continue to diversify customer interface and

improve productivity

[FY19 results] Expense ratio of 70.2%, improved by 0.7ppt from FY18

P.35

[FY20 onward] Further curb expenses by reviewing work procedures and processes

[FY19 results]	Reduced RWA by approx. ¥9tn*1
[FY20 onward]	Satisfy both finance support for customers and	P.37
	preservation of our financial soundness successfully

*1 Finalized Basel III reforms basis	32

FY19 financial results

Management

principles as CEO

Major existing initiatives

Capital policy

Promote shift of sales channel (1)

－Steady progress in sales channel shift by expanding digital and non face-to-face channels

Transaction

volume

(FY19)

Branch

ATM, STM*1etc.*2

IB*3, App

Fund transfer

Pay tax and

utility bills

Change of

address

Replacement of unusable cards

Approx. 93mm

Approx. 17mm

Approx. 1.9mm

Approx. 520thd

FY18FY19

2% 2%

FY18FY19

13%8%

FY18FY19

57%51%

FY18FY19

81%71%

FY18FY19

58%55%

FY18FY19

22%23%

FY18FY19

26%23%

FY18FY19

11%7%

FY18FY19

40%44%

FY18FY19

65%69%

FY18FY19

16%26%

FY18FY19

9%22%

*1	Store Teller Machine (ATM equipped with functions to handle tax payment, utility bills payment and domestic transfer with a private request form)
*2	Including transactions via TV, telephone and mail	33
*3	Mitsubishi UFJ DIRECT: Internet banking for individual customers

FY19 financial results

Management

principles as CEO

Major existing initiatives

Capital policy

Promote shift of sales channel (2)

－No. of transactions at bank-counter declined due to the shift to non face-to-face channels

	No. of IB*1service users*2			No. of transactions at bank-counter

(mm)				15.0	(mm)
	No. of IB service users		22.0
	Utilization rate *3				20.0
					20		17.6
12
				74%				15.7
					15
			8.0
8									11.1
		5.9			10
			44%
	4.7
4.3
4		31%
				5
	25%
22%
0					0
FY17	FY18	FY19	FY20	FY23	FY17	FY18	FY19	FY20	FY23

*1	Mitsubishi UFJ DIRECT: Internet banking for individual customers	34
*2	Users who log-in IB at least once in 6 months out of all active accounts (excl. accounts used for direct debit only)
*3	Utilization rate = IB service users / active accounts (excl. accounts used for direct debit only)

FY19 financial results

Management

principles as CEO

Major existing initiatives

Capital policy

Cost control

－FY19 expense increased mainly due to the consolidation of BDI and FSI FY19 expense ratio slightly improved to 70.2% by 0.7ppt from FY18

	Expense ratio		By business group

Assumption in Medium-term

(¥bn)

+154.7

business plan

47.1*2

8.7

16.0

68.0%

71.0%

70.2%

88.3*1

62.3%

64.6%

FY20 target:

6.5

6.4

Below FY17 result

of 68.0%

(18.3)

FY15

FY16

FY17

FY18

FY19

FY20

FY18

R&C

JCIB

GCIB

GCB

AM/IS

Global

HQ,

FY19

Markets

others

By measures

(¥bn)

+154.7

FY20 management policy

180.0*3

2.0

31.7

Aim at further curbing expenses by selecting the

(30.0)

necessary investments and reviewing work procedures

and processes, looking ahead to post COVID-19

(29.0)

FY18

Cost reduction,

Strategic

Regulatory Transformation

FX

FY19

etc

expense

costs, etc

initiatives

fluctuation

and others

*1	Including the impact of the consolidation of BDI (approx. ¥83.0bn)	35
*2	Including the impact of the consolidation of FSI (approx. ¥41.0bn)
*3	Including the impact of the consolidation of BDI and FSI

FY19 financial results

Management

principles as CEO

Major existing initiatives

Capital policy

Cost control (headcount, branches)

－Expect a decrease in employee headcount totaling approx. 6,000 (attrition) and the reduction of no. of branches by 40%, compared to FY17

	Forecast of employees headcount					Forecast of number of branches
	(Headcount)*1			(No. of branches)*2
45		(thd)
								Branch specialized to features*3
										MUFG PLAZA*4
										Full-fledged branch*5
						600					vs FY17
40												(initial target)
											(20%)
													(35%)
35			Approx. (6,000)	400					(40%)
				headcount

30

200

0

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY23

FY06

FY17

FY18

FY19

FY20

FY23

*1 The figure includes MUFG Bank's domestic bank staff, part-time and contract staff as well as temporary staff but excludes overseas staff hired locally. The figure also includes employees of other companies seconded to MUFG Bank but excludes employees temporarily transferred to other companies

*2 MUFG Bank non-consolidated basis *3 MUFG NEXT and consulting office *4 Group co-located branch36*5 A branch that handles all services including consulting service at bank counter by clerk

FY19 financial results

Management

principles as CEO

Major existing initiatives

Capital policy

RWA control

－Reduced RWA by approx. ¥9tn by business groups' efforts in addition to upgrading risk measurement method

	RWA (Finalized Basel III reforms basis*1)			Factors of increase and decrease

(¥tn)			Inorganic	Consolidation of BDI
		growth	Acquisition of aviation finance business
125				Reduction of equity holdings
			- Sold ¥733.0bn*2
			Business
			Reduction of low profitable asset
			groups
			- Reduced ¥2.5tn*3
120				Financial supports in response to COVID-19, etc.
			Upgrade risk
			measurementDecrease of RWA by ¥7tn*4
115			method
			FY20 management policy
110			Satisfy both of finance supportfor customers and
			preservation of our financial soundness
			•Thoroughly monitor RWA including the impact of
0			downgrading
End Mar	End Mar	End Mar	•Examine additional RWA reduction measures
18	19	20

*1	Estimated RWA on the finalized Basel III reforms basis *2 Cumulative amount since FY15. Acquisition cost basis *3	Cumulative amount since FY17	37
*4	Reduction amount of estimated RWA on finalized Basel III reforms basis through upgrading risk measurement method

Capital policy

38

FY19 financial results

Management

principles as CEO

Major existing initiatives

Capital policy

Basic policy ("Capital Triangle")

－Implement well-balanced capital management

Enhance further

shareholder returns

MUFG's

Corporate

Value

Maintain solid	Strategic investments for
equity capital	sustainable growth

39

FY19 financial results

Management

principles as CEO

Major existing initiatives

Capital policy

Capital allocation

Capital allocation results and forecast(Finalized Basel III reforms basis*1. Includes net unrealized gains on AFS securities)

+0.7%
(0.3%)			+0.7% 11.7％
(0.1%)
11.4％
	(0.4%)		+0.2%
		(0.2%)
			(0.3%)

CET1Net profits*2Dividend	Share	Strategic	Double-gearing Unrealized	Decrease Upgrade risk	CET1	Net profits
ratio	repurchase	investment	(investment	gains/losses	of RWA measurement	ratio
(End Mar 19)			in MS, etc.)	on AFS	method(End Mar 20)
				securities

Dividend Double-gearing, Others	CET1
Change of	ratio
accounting	(End Mar 21)
standard

FY19 results

FY20 forecasts

*1	Estimated RWA reflecting the result of calculation on the finalized Basel III reforms basis	40
*2	Excludes the impact of one-time amortization of goodwill

FY19 financial results

Management

principles as CEO

Major existing initiatives

Capital policy

Basic policies for shareholder returns

－Improve shareholder returns, focusing on dividends

Dividends

Share

Repurchase

MUFG aims for a stable and sustainable increasein dividends per share through profit growth, with a dividend payout ratio target of 40%

Target a dividend payout ratio of 40% by the end of FY23

MUFG plans to flexibly repurchaseits own shares, as part of its shareholder return strategies, in order to improve capital efficiency

Consider (1) Performance progress / forecast and capital situation,

1. Strategic investment opportunities (3) Market environment including share price
   Confirm if MUFG's capital level remains stable as required to secure "A" or higher credit rating

Share

In principle, MUFG plans to hold a maximum of approximately 5% of the

Cancellationtotal number of issued shares, and cancel shares that exceed this amount

41

FY19 financial results

Management

principles as CEO

Major existing initiatives

Capital policy

Results of shareholder return

Dividend per share	Dividend payout ratio
22.0%	23.4%	24.6%	26.3%	26.4%	25.5%	32.9%	61.0%*1

											¥25
											Year-end
											¥12.5
		¥16	¥18	¥18	¥18	¥19	¥22		¥25
	¥13					Interim
										¥12.5
	FY12	FY13	FY14	FY15	FY16	FY17	FY18	FY19	FY20
											(forecast)
（¥bn）
Dividend	184.1	226.6	253.7	249.3	243.6	251.8	286.9	322.9	321.8
Share repurchase	-	-	100.0	200.0	200.0	200.0	150.0	50.0	-
Total payout	184.1	226.6	353.7	449.3	443.6	451.8	436.9	372.9	321.8
Net profits	852.6	984.8	1,033.7	951.4	926.4	989.6	872.6	528.1	550.0
Total payout ratio	22.0%	23.4%	34.2%	47.2%	47.9%	45.7%	50.1%	70.5%	-

*1 Dividend payout ratio excluding the impact of one-time amortization of goodwill: 37％	42

FY19 financial results

Management

principles as CEO

Major existing initiatives

Capital policy

Reduction of equity holdings*1

Historical performance

（¥tn）			Acquisition price of domestic equity securities in the
		category of 'other securities' with market value (consolidated)
10					Ratio of equity holdings over Tier1 capital*2
9.20	51.8%

	Aim to reduce our equity
	holdings to approx. 10%
	of our Tier1 capital towards
	the end of the current
	medium-term business plan
22.8%
5	19.7%					Includes agreed
4.29	17.9% 16.6%			amount
		14.2%13.4% 12.8%
				11.7%
2.82	2.79	2.66	2.52				Approx.
		2.32			10%
			2.18	2.00

0

End	End	End	End	End	End	End	End	End	End
Mar 02 Mar 08 Mar 14 Mar 15 Mar 16 Mar 17 Mar 18 Mar 19 Mar 20	Mar 21

Approx. selling amount

	Selling		Net gains
	Acquisition
	(losses)
(¥bn)	amount
cost basis
FY15	211	117	94
FY16	267	149	118
FY17	318	201	117
FY18	242	127	115
FY19	240	139	101
Total	1,278	733	545
Agreed	-	163	-
amount

*1	Sum of the Bank and the Trust Bank.	43
*2	Under Basel II basis until end Mar 12 (consolidated)

Appendix

44

Income statement summary

			Income statement				Consolidated
				(¥bn)	FY18		FY19	YoY
1		Gross profits	3,725.7	1	3,986.3	260.5
				(before credit costs for trust accounts)
2			Net interest income	1,922.7		1,892.9	(29.8)
3			Trust fees +	1,429.3		1,472.0	42.7
		Net fees and commissions
4			Net trading profits +	373.6		621.2	247.6
		Net other operating profits
5				Net gains (losses) on debt	29.9		492.9	463.0
			securities
6		G&A expenses	2,647.1	2	2,801.8	154.7
7		Net operating profits	1,078.5		1,184.4	105.8
8		Total credit costs*1	(5.8)	3	(222.9)	(217.1)
9		Net gains (losses) on equity	112.6		31.3	(81.2)
	securities
10			Net gains (losses) on sales of	125.9		92.1	(33.8)
		equity securities
11			Losses on write-down of equity	(13.3)		(60.8)	(47.4)
		securities
12		Profits (losses) from investments	284.3		277.2	(7.1)
	in affiliates
13		Other non-recurring gains	(121.7)		(34.2)	87.4
	(losses)
14		Ordinary profits	1,348.0		1,235.7	(112.2)
15		Net extraordinary gains (losses)	(202.7)		(406.3)	(203.6)
16		Total of income taxes-current and	(195.5)		(220.8)	(25.3)
				income taxes-deferred
17		Profits attributable to owners of	872.6	4	528.1	(344.5)
	parent
18			EPS (¥)	66.91		40.95	(25.96)

1. Gross profits
2. • Gross profits increased by ¥260.5bn mainly due to increases in net gains on debt securities and net fees and commissions due to consolidation of BDI and FSI, partially offset by a decrease in net interest income, reflecting a decline in U.S. interest rates
3. G&A expenses / expense ratio
4. • G&A expenses increased due to increases in expenses for overseas operations because of the expansion of business and expenses for regulatory compliance purposes
   • Expense ratio decreased to 70.2% mainly due to an increase in gross profits
5. Total credit costs
6. • Total credit costs increased by ¥217.1bn to
     ¥222.9bn due to the lack of reversal of allowance recorded in FY18 as well as the provisions built for some credit in light of the impact of the COVID-19 pandemic

4

Profits attributable to owners of parent

• Profits attributable to owners of parent decreased by ¥344.5bn mainly due to net extraordinary losses resulting fromone-time amortization of goodwill as well as decreases in net gains on equity securities

*1 Credit costs for trust accounts + Provision for general allowance for credit losses + Credit costs (included in non-recurring gains (losses)) + Reversal	45
of allowance for credit losses + Reversal of reserve for contingent losses included in credit costs + Gains on loans written-off

Retail & Commercial Banking R&C

FY19 results*1

(¥bn)	FY18	FY19	YoY
Gross profits	1,566.6	1,550.6	(16.0)
	Loan interest income	199.1	190.3	(8.8)
	Deposit interest income	156.7	149.3	(7.4)
	Domestic and foreign	144.5	144.3	(0.2)
	settlement / forex
	Derivatives, solutions	53.5	58.3	4.9
	Real estate, corporate	51.9	53.8	1.9
	agency and inheritance
	Investment product	222.2	197.2	(24.9)
	sales
	Card settlement	310.0	319.0	9.0
	Consumer finance	289.8	296.0	6.2
	Overseas	45.3	48.2	2.9
Expenses	1,258.8	1,242.7	(16.1)
	Expense ratio	80%	80%	(0ppt)
Net operating profits	307.8	307.9	0.1
ROE	1%*2	9%*3	9ppt

Loans / Deposits

(¥tn)	FY18	FY19	YoY
Ave. loan balance*4	32.0	31.4	(0.5)
	Lending spread*5	0.75%	0.69%	(0.06ppt)
Ave. deposit balance	115.9	118.3	2.4

KPI

	FY18	FY19	YoY
Investment assets (¥tn)	41.2	40.2	(0.9)
No. of entrusted	4,874	4,976	102
testamentary trust*6
Gross profits of cross	33.7	37.5	3.8
transactions (¥bn)*7
No. of effective
information sharing of real	5,630	4,983	(647)
estate
Volume of card shopping	5.9	6.0	0.1
(¥tn)*8
Balance of consumer loans	1.5	1.5	0.0
(¥tn)*9

*1	Managerial accounting basis. Local currency basis. Gross profits, expenses and net operating profits include profits from overseas transactions with Japanese corporate
	customers and profits from business owner transactions which belong to JCIB. ROE is calculated based on net profits and exclude non-JPY mid- to long-term funding costs
*2	ROE excluding the impact of impairment losses on fixed assets of NICOS is 6%*3 ROE excluding the impact of one-time effects of corporate tax refund is 6%
*4	Excluding consumer loans *5 Excluding non-JPY mid- to long-term funding costs
*6	Including estate division *7	Revenue from inheritance and real estate transactions and transactions with client's asset administration companies	46
*8	For NICOS cardmembers *9	Total balance of personal card loans of the Bank, the Trust Bank and ACOM (excl. guarantee)

Japanese Corporate & Investment Banking JCIB

FY19 results*1

(¥bn)	FY18	FY19	YoY
Gross profits	561.6	578.7	17.1
	Loan interest income	95.4	106.0	10.6
	Deposit interest income	130.6	131.3	0.8
	Domestic and foreign	80.4	76.3	(4.1)
	settlement / forex*2
	Derivatives, solutions*2	80.5	72.8	(7.7)
	Real estate, corporate	42.4	45.1	2.7
	agency
	M&A,DCM,ECM*3	47.5	49.8	2.3
	Non-interest income	71.4	81.1	9.7
	from overseas business
Expenses	317.3	329.1	11.8
	Expense ratio	57%	57%	0ppt
Net operating profits	244.3	249.6	5.3
ROE	15%	12%	(2ppt)

Loans / Deposits

(¥tn)	FY18	FY19	YoY
Ave. loan balance	39.2	38.5	(0.7)
	Lending spread*4	0.49%	0.48%	(0.00ppt)
	Ave. non-JPY	18.2	16.7	(1.5)
	loan balance*5
		Non-JPY	0.63%	0.64%	0.01ppt
		lending spread*4*5
Ave. deposit balance	31.2	32.9	1.8
	Ave. non-JPY	13.6	15.2	1.5
	deposit balance*5

KPI

	FY18	FY19	YoY
Transaction volume *6	1,138.4	1,159.8	21.4
($bn)
No. of domestic settlement	177	180	3
(mm)
M&A advisory League	#1	#2	-
Table*7
DCM league table*7	#2	#1	-
ECM league table*7	#5	#3	-

*1 Managerial accounting basis. Local currency basis. Gross profits, expenses, and net operating profits include profits from business owner transactions which
belong to R&C and profits from Japanese corporate customers served by KS. ROE is calculated based on net profits and excludes non-JPY mid- to long-term
funding costs *2 Figures are domestic business only *3 Including real estate securitization etc. *4 Excluding non-JPY mid- to long-term funding costs *5 Sum	47
of domestic and overseas loans and deposits *6 Domestic foreign exchange transaction amount related to trade, inward and outward investment, dividend, and
services, etc. *7 Based on data of Refinitiv, etc., M&A advisory only counts Japanese corporates related deals. DCM includes both domestic and foreign bonds

Global Corporate & Investment Banking GCIB

FY19 results*1

(¥bn)	FY18	FY19	YoY
Gross profits	422.4	446.2	23.8
	Loan interest income	169.0	177.1	8.0
	Deposit interest income	48.0	49.9	1.9
	Commission, forex, derivatives	194.9	192.3	(2.5)
	DCM, ECM	23.8	18.9	(4.8)
	Profits from large global	19.7	19.7	0.1
	corporates located in Japan, etc.
	Joint venture profits with Global	20.8	30.6	9.8
	Markets*2
Expenses	266.4	282.6	16.1
	Expense ratio	63%	63%	0ppt
Net operating profits	156.0	163.7	7.7
ROE	10%	8%	(2ppt)

Loans / Deposits

(¥tn)	FY18	FY19	YoY
Ave. loan balance	24.1	23.8	(0.2)
Lending spread*3	0.70%	0.74%	0.04ppt
Ave. deposit balance	10.3	12.6	2.3

KPI

	FY18	FY19	YoY
Distribution amount*4(¥tn)	22.8	21.4	(1.4)
Distribution ratio*5	59%	48％	(11ppt)
GSB*6profits (¥bn)	90.1	86.7	(3.4)
ABS league table (US)	#10	#9	-
Wallet share of syndicated	1.19%	1.22%	0.03ppt
loan and DCM (Non-IG*7)

*1	Managerial accounting basis. Local currency basis. Gross profits, expenses and net operating profits include profits from large global
	corporates of KS which belong to GCB and JCIB's large global corporates located in Japan, and Joint venture profits with Global Markets.
	ROE is calculated based on net profits and excludes non-JPY mid- to long-term funding costs
*2	Including O&D profits through collaboration with Global Markets *3 Excluding non-JPY mid- to long-term funding costs
*4	Distribution amount = Arrangement amount - Final hold amount (Syndicated loan, Project Finance, Securitization, Aviation Finance, etc.)
	+ Securities' arrangement amount of DCM, ABS, etc.
*5	Distribution ratio = Distribution amount / Total amount of loans to global corporate customers	48
*6	Global Subsidiary Banking. Transactions with subsidiaries of global corporate multinational customers *7 Non-investment grade

Global Commercial Banking GCB

FY19 results*1

(¥bn)	FY18	FY19	YoY
Gross profits	668.8	770.2	101.4
	MUAH*2	353.6	339.6	(14.0)
	KS*3	316.4	323.9	7.5
	BDI*4	-	114.4	114.4
Expenses	470.0	552.2	82.2
(Expense ratio)	70%	72%	1ppt
	MUAH*2	264.0	264.8	0.8
	(Expense ratio)	75%	78%	3ppt
	KS*3	163.5	167.2	3.7
	(Expense ratio)	52%	52%	(0ppt)
	BDI*4	-	59.5	59.5
	(Expense ratio)	-	52%	-
Net operating profits	198.8	217.9	19.1
	MUAH*2	89.5	74.8	(14.7)
	KS*3	152.9	156.6	3.8
	BDI*4	-	54.9	54.9
ROE	6%	(17%)*5	(23ppt)

Loans / Deposits

(¥tn)		FY18	FY19	YoY
	Ave. loan	7.3	7.8	0.5
	balance
MUAH*2	Ave. deposit	8.2	9.0	0.8
	balance
	NIM*6	2.74%	2.39%	(0.34ppt)
	Ave. loan	5.2	5.6	0.4
	balance
KS*3	Ave. deposit	4.5	4.9	0.4
	balance
	NIM*7	3.81%	3.62%	(0.20ppt)
	Ave. loan	-	0.9	0.9
	balance
BDI*4	Ave. deposit	-	0.7	0.7
	balance
	NIM	-	8.16%	-

*1	Managerial accounting basis. Local currency basis. Gross profits, expenses and net operating profits include figures which belong to GCB only and not include
	figures which belong to other business groups. BDI entity basis. ROE is calculated based on net profits
*2 MUAH figures as reported in MUAH's 10-Q and 10-K excluding figures belonging to Trust/Securities subsidiaries, GCIB and Global Markets
*3	After GAAP adjustment. Excluding figures which belong to Global Markets	*4 Apr to Dec 2020 results after consolidation
*5	ROE excluding the impact of one-time amortization of goodwill and impairment loss is 5%	49
*6	Excluding figures which belong to Global Markets *7 KS entity basis

Asset Management & Investor Services AM/IS

FY19 results*1

（¥bn）	FY18	FY19	YoY
Gross profits	202.3	246.3	44.0
	AM*2	46.8	81.8	34.9
	IS*3	93.7	102.6	8.8
	Pension	61.7	62.0	0.3
Expenses	124.2	175.4	51.2
	Expense ratio	61%	71%	10ppt
Net operating profits	78.1	70.9	(7.2)
ROE	8%*4	19%	11ppt

KPI

		FY18	FY19	YoY
	Investment products	9.4	10.4	1.1
	balance of corporate
AM	customers (¥tn)
	Alternative products balance	261.1	379.0	117.9
	(¥bn)*5
	Global IS balance ($bn)	616.6	686.5	69.8
IS
Balance of domestic	73.8	74.2	0.4
	investment trust funds (¥tn)
	DB / Balance (¥tn)	11.3	11.0	(0.3)
Pension
DC / Increase number of	195	308	113
	subscriber (thd)*6

*1	Managerial accounting basis. Local currency basis. ROE is calculated based on net profits *2 Asset Management *3 Investor Services
*4	ROE excluding the impact of losses on sales of Standard Life Aberdeen shares is 18%	50
*5	Balance of internally developed low-liquidity investment products, such as real estate-based products *6 Net increase of subscribers from FY17

Global Markets Global

Markets

FY19 results*1

（¥bn）	FY18	FY19	YoY
Gross profits	572.9	637.9	64.9
	Customer business	309.9	345.2	35.3
		FIC & equity	226.8	265.8	38.9
			Corporates	110.2	115.0	4.9
			Institutional	91.5	126.7	35.2
			investors
		Asset management	3.1	2.7	(0.4)
		JV with GCIB*2	100.7	107.3	6.6
	Treasury	272.6	306.9	34.3
Expenses	274.1	285.8	11.7
	Expense ratio	48%	45%	(3ppt)
Net operating profits	298.8	352.0	53.2
	Customer business	94.6	117.2	22.7
	Treasury	218.1	254.4	36.3
ROE	5%	6%	1ppt

KPI

	FY18	FY19	YoY
Derivative revenues from	6.8	8.5	1.7
strategic fields*3（¥bn）
Client value*4	89	101	12pt
Digitalization ratio of FX rate	71%	72%	1ppt
contracts*5

*1	Managerial accounting basis. Local currency basis. Gross profits, net operating profits, and expenses includes Joint venture profits with GCIB. ROE is calculated
	based on net profits
*2	Profits including O&D profits through collaboration with GCIB
*3	Profits from new type of risk hedging (e.g. hedging against interest rate and forex risks in M&A transactions) and deals related to investment banking products
*4	Quasi sales & trading profits in institutional investors business. Indexation using in FY17 as 100 *5 Internal transactions	51

Financial results*1of MUAH, KS, and BDI

			(¥bn)			(US$mm)
MUAH*2
FY18	FY19	YoY	FY18	FY19	YoY
Total revenue	608.7	635.2	26.5			5,484	5,798	314
Non-interest expenses	474.7	680.9	206.1			4,277	6,215	1,938
Pre-tax,Pre-provision income	133.9	(45.6)	(179.6)			1,207	(417)	(1,624)
Provision for credit losses	11.7	27.6	15.8			106	252	146
Net income attributable to MUAH	119.1	(80.4)	(199.5)			1,073	(734)	(1,807)
			(¥bn)			(THB mm)
KS*3
FY18	FY19	YoY	FY18	FY19	YoY
Total income	373.6	441.4	67.7			109,579	121,608	12,029
Operating expenses	176.4	189.3	12.9			51,741	52,169	428
Pre-provision operating profit	197.2	252.0	54.8			57,838	69,439	11,601
Impairment loss of loans and debt securities	89.2	102.3	13.1			26,180	28,203	2,023
Net profit attributable to owners of the bank	84.6	118.8	34.2			24,813	32,749	7,936
			(¥bn)			(IDR bn)
BDI*4
FY18	FY19	YoY	FY18	FY19	YoY
Total operating income	136.3	143.1	6.7			17,711	18,119	408
Operating expenses	66.5	73.6	7.0			8,647	9,319	672
Pre-provision operating profit	69.7	69.5	(0.2)			9,064	8,800	(264)
Cost of credit	25.1	37.2	12.1			3,267	4,719	1,452
Net profit after tax	30.2	32.1	1.9			3,922	4,073	151

*1 All figures are converted into ¥ with actual exchange rates as of end of each fiscal year. For FY18 is US$1=¥111.00, THB1=¥3.41, IDR1=¥0.0077.

For FY19 is US$1=¥109.56, THB1=¥3.63, IDR1=¥0.0079 *2 Financial results as disclosed in MUAH's 10-K and 10-Q reports based on U.S. GAAP	52
*3 Financial results as disclosed in KS's financial report based on Thai GAAP *4 Financial results as disclosed in BDI's financial report based on Indonesian GAAP

Key figures*1of MUAH
Lending balance*2		Net interest income		Non-interest income
(US$bn)	Other consumer		(US$mm)			(US$mm)
	Residential mortgage & home equity		NII		NIM
	Other commercial
	Commercial mortgage
100	Commercial & industrial		4,000	2.33%	2.26%		3,000
		88.2
	86.5
	80.0				1.99%
	2.7	4.5
	1.1
	38.0	40.7	38.0
50			2,000				1,500
	2.9	2.5		3,307			2,705
	3.3		3,204	3,093		2,177
	16.9		2,010
	14.3	15.4
	23.3	24.9	26.3
0				0				0
End Dec 17	End Dec 18	End Dec 19		FY17	FY18	FY19	FY17	FY18	FY19

	Deposit balance					Cost to income ratio*3 *4				ROE / CET1 ratio*5
	(US$bn)												20%				ROE		CET1 ratio
100													107.2%	16.3%		14.0%
																				14.1%
							100%					10%					5.8%
															6.0%
50			84.8	91.0	95.9					76.4%	78.0%
														0%
0																				(4.4%)
													(10%)
					50%
	End Dec 17 End Dec 18 End Dec 19		FY17	FY18	FY19		FY17	FY18	FY19

*1 Financial results as disclosed in MUAH's 10-K and 10-Q reports based on U.S. GAAP *2 Loans held for investment based on year-end balances *3 Efficiency ratio

*4 The adjusted efficiency ratio is a non-GAAP financial measure. Management believes adjusting the efficiency ratio for the fees and costs associated with the provision of services to MUFG Bank, Ltd. branches in the U.S. enhances the comparability of MUAH's efficiency ratio when compared with other financial institutions. Management believes adjusting noninterest expense for the impact of goodwill impairment and revenue for the impact of the TCJA enhances comparability between periods. Adjusted Efficiency Ratio for FY18 was 72.47% and for FY19 was 74.69%

*5 U.S. Basel III standardized approach; fully phased-in MUAH is working on capital optimization and paid a US$500mm dividend in 2017 to MUFG	53
and MUFG Bank, Ltd. And repurchased approximately US$2.5bn of its outstanding common stock from MUFG and MUFG Bank, Ltd. in 2018

Key figures of KS

Lending balance

(THB bn)Credit card and personal loans

Mortgage

Auto

SME

2,000				Corporate	1,818
				1,672
1,550
	199
	178
	174	270
	250
	217
	367	414
1,000
337	273
	220	251
	602	626	661
0
	End Dec 17	End Dec 18	End Dec 19

Deposit balance

(THB bn) 2,000

1,000

1,319 1,4261,567

0

End Dec 17 End Dec 18 End Dec 19

Net interest income

(THB bn)

NII NIM

1003.74% 3.81% 3.60%

50

68.575.3 76.4

0

FY17 FY18 FY19

Cost to income ratio

60%

50%48.0% 47.2%

42.9%*2

40%

30%

FY17 FY18 FY19

Non-interest income

(THB bn)

40
			*1
20			45.2
32.0	34.3
0
	FY17	FY18	FY19
ROE / CET1 ratio*3
20%	ROE		CET1 ratio
	12.0%	11.6%	12.8%
10%			11.9%
	10.7%	10.6%
0%
	FY17	FY18	FY19

*1 Excluding one-time gains on investment from the sales of 50% of shares in Ngern Tid Lor Company Limited (NTL transaction), normalized non-interest

	income recorded at THB 36.6bn
*2	Excluding one-time gains on investment from NTL transaction and provision in accordance to the amended Labor Protection Act, normalized cost to income	54
	was recorded at 45.1%
*3	Non-consolidated

Key figures of BDI

Lending balance

(IDR tn)			Micro/others		Auto
					ABF *1			Consumer
					SME			Enterprise and FI
150						139.5		144.3
		129.7		0.5
			2.3
			6.8			54.8
						51.3
100			45.2
		2.1		1.2
			2.4		12.3
			11.1
			9.2
			31.2		31.6
50			28.5
		41.5		44.0
			37.6
0
	End Dec 17	End Dec 18	End Dec 19

Deposit balance

Net interest income

(IDR tn)	NII	NIM

	9.26%	8.94%
		8.32%
20

10

14.2 14.4 14.4

0

FY17 FY18 FY19

Cost to income ratio

Non-interest income

(IDR tn)

4

2				3.7
3.5	3.3

0

FY17 FY18 FY19

ROE / CET1 ratio

(IDR tn) 150

100		105	111	112
50
0

60%

50%

40%

30%

49.0% 48.8%

51.4%

30%	ROE	CET1 ratio
21.3%	21.4%	23.4%
20%
10.5%	10.6%	10.3%
10%

0%

End Dec 17

End Dec 18

End Dec 19

*1 Asset Based Finance

FY17 FY18 FY19

FY17 FY18 FY19

55

Credit portfolio of energy and mining

Credit exposure*1

（¥tn）
10.4
10	7.9
6.9
5	5.3	Unsecured
3.5	2.6	Secured*2
0
End Mar 16	End Mar 20

NPLs*3

（¥bn）	End Mar 20
NPLs*3	62.1
	Secured amount	45.4
	Allowance	8.9
NPLs*3(net)	7.8

Breakdown by sub-sector*1

Breakdown by region*1

（¥tn）

Mining

（¥tn）

Structured

Related

Integrated*4

finance*8

0.6

industry*7

1.3

Americas

0.3

1.7

2.3

of which of

RBL*90.1

2.3

Mid/

3.4

Japan

1.6

Upstream*5

1.3

downstream*6

1.0

EMEA

Asia &

*1

Including undrawn commitment and excluding market exposure

Oceania

*2

Collateralized or guaranteed *3 NPLs are based on the relevant rules for risk-monitored loans under Japanese Banking Act, except for NPLs in

overseas subsidiaries which are based on each subsidiary's internal criteria *4 Integrated business from upstream to downstream

*5

Exploration, development and production of oil and gas *6 Storage, transportation, refinement, retail *7 Sales of mining machine to companies

among upstream industry *8 Project finance and trade finance *9 Reserve based lending

56

Note: All figures are on managerial accounting basis, aggregating internal management figures of each subsidiary

Credit portfolio of air transportation (incl. aircraft finance)

Credit exposure*1

(¥tn)	In Nov 2019, acquired
			aviation finance business
			from DVB Bank (¥0.5tn)
2				1.8
			1.4	0.4	Unsecured
			0.3
1			1.1	1.4	Secured*2
0
		End Mar 19	End Mar 20

NPLs*3

（¥bn）	End Mar 20
NPLs*3	22.5
	Secured amount	19.7
	Allowance	0.8
NPLs*3(net)	2.0

Breakdown by structure*1

Breakdown by region*1

(¥tn)

（¥tn）

Japan

Americas

0.3

0.4

Corporate

0.8

1.0

Structured

Finance

0.5

0.6

Asia &

EMEA

Oceania

*1

Including undrawn commitment and excluding market exposure

*2

Collateralized or guaranteed *3 NPLs are based on the relevant rules for risk-monitored loans under Japanese Banking Act, except for NPLs in

overseas subsidiaries which are based on each subsidiary's internal criteria

57

Note: All figures are on managerial accounting basis, aggregating internal management figures of each subsidiary

Mitsubishi UFJ NICOS

－Solid FY19 results. Decided to formulate a new system integration plan in FY20

FY19 results and transaction volume

∎FY19 results *1

(¥bn)	FY18	FY19	YoY
	Operating revenues	299.4	305.9	6.5
	Operating expenses	293.8	290.1	(3.7)
	Operating profits	5.6	15.8	10.2
	Other profits and losses	(161.1)	(17.4)	143.7
	Total of income taxes current	39.1	65.5	26.4
	and income tax deferred
	Profits attributable to owners	(116.4)	63.9	180.3
	of parent

∎Transaction volume

（¥tn）

Issuing Acquiring Processing

3.2 3.74.3

8.18.9 9.3

Fundamental revision of system integration plan

Decided to promote the system integration by utilizing the existing system and formulate a new system integration plan in FY20

∎Items to be considered for formulating the plan

• Ensure scalabilityto respond flexibly to changes in the business environment
• Emphasize safety and stabilityas social infrastructure
• Control development costs
• Changes from the previous system integration plan
• Decided to use the existing system for the system integration

The goal "eliminating management inefficiencies

due to 3-system3-way operations" through the system integration remains unchanged

∎Efforts in FY20 [System integration]

• Promote to materialize and elaborate the system integration plan and formulate a new system integration plan

5.7 5.9 6.0

FY17

FY18

FY19

*1 Provision for losses on interest repayment is included in other profits and losses

[Response to COVID-19]

• Maintain safe and secured payment services as social infrastructure
• Respond to customer needs flexibly

58

History of strategic investment in overseas

2012

2020

Strategic investment

Asian

commercial

banks

Approx. ¥63bn*1Approx. ¥536bn*1Approx. ¥89bn*1Approx. ¥687bn

2013～	6 acquisitions*2

Global	Approx. ¥76bn	Approx. ¥300bn
AM/IS

AM/IS business group's ROE*3＝19％

Divestment

Approx. ¥68bn

Approx. ¥45bn

Approx. ¥49bn

Approx. ¥10bn

*1 Initial investment amount *2 Butterfield, Meridian, UBS AFS, Capital Analytics, Rydex, Point Nine. Acquire HF administration business
from Maitland in 2020 *3 ROE for FY19 (Page 50)	59

Global Open Network

－Through strategic alliance with Akamai, we aim to provide an open network service in FY20

Established Global Open Network Japan in Apr 2019

				Global Open Network		Intelligent edge platform,
Strong presence in the	80%	20%
	Payment business	100%	which offers world-class
			speed an security

Global Open Network Japan

(GO-NET Japan)

Eight features and various areas to be utilized

Process 1 million		Device			IoT		High availability and
transactions per
								disaster recovery
second*1
		Wearable	Smart home
	Credit card
		device
					IoT appliance
High security features		Smartphone
	eMoney							Low-cost structure
on a 24/7/365 basis						Sharing
	PRESENT						Smart car economy	FUTURE
Ability to finalize		Debit card	Utilize blockchain	Healthcare	Value management
transactions in less than
				function
2 seconds*2					network
	POS						Logistics	Insurance
High resilience against			Payment			Supply chain Hospital
		terminal
falsification of	QR payment	Point card			Global services
		Factory
transactions
						Retail
*1 Verified under realistic business conditions	*2 Processing time per transaction is measured end to end from merchant request to final response		60

Partnership with Grab as "First Choice Bank"

－Jointly develop next generation bespoke financial services by combining Grab's advanced technologies and data management expertise with MUFG's financial knowledge and know-how

Financial product	Advanced AI technology
development capabilities

Credit strength

Super App

One of the largest financial footprints in Southeast Asia

One of the largest unicorns in Southeast Asia

Strategic partnership agreement in Feb2020

Risk management

Various unique data

Financial inclusion

Accelerate innovation

Create new employment

opportunities

61

Eleven Transformation Initiatives*1

• "Eleven Transformation Initiatives" have been outlined in the newmedium-term business plan as specific initiatives to achieve the MUFG Re-Imagining Strategy
• MUFG promotes the initiatives with a joint collaboration by entities, business groups and corporate center

Transformation Eleven			segment Customer
Initiatives		Head office

1. Sales Channel
2. Wealth Management
3. New Model for Wholesale Banking in Japan
4. Real Estate
5. Asset Management in Japan
6. Institutional Investors
7. Global CIB
8. Overseas Operations

1. Human Resources
2. Corporate Center Operations

1 DigitalTechnology

*1 Re-shown from page 26, Fiscal 2017 Results Presentation

62

Eleven Transformation Initiatives (1)

Sales Channel	FY17	FY18	FY19	Changes*1		FY20		FY23
No. of IB*2service users*3(mm)	4.3	4.7	5.9	1.2		8.0		15.0
Utilization rate*4	22%	25%	31%	6ppt		44%		74%
No. of transactions at bank-counter	22.0	20.0	17.6	(2.4)	15.7	11.1
(mm)
				Changes*1
Wealth Management	FY17	FY18	FY19		FY20		FY23
No. of profiling*5(thd)	4.3	5.3	6.5	1.2		7.1		7.8
No. of group collaborations*6(thd)	4.5	13.4	23.8	10.5		29.0		10.5
AuM of HE*7/ SHE*8customers (¥tn)	11.6	12.1	11.8	(0.3)	13.4	16.3*9
New Model for Wholesale Banking in				Changes*1
FY17	FY18	FY19		FY20		FY23
Japan
DB pension balance (¥tn)	11.2	11.3	11.0	(0.3)	12.3	13.6
DC pension/ Increase no. of	90	195	308	113	372	-
subscribers*10(thd)

Real Estate	FY17	FY18	FY19	Changes*1	FY20
AM balance (¥bn)	180.0	230.0	312.4	82.5	380.0
No. of effective information sharing	3,100	7,481	7,154	(327)	4,860

*1 Increase / decrease compared to FY18 *2 Mitsubishi UFJ DIRECT: Internet banking for individual customers

*3 Users who log-in IB at least once in 6 months out of all active accounts (excl. accounts used for direct debit only)

*4 Utilization rate = IB service users / active accounts *5 No. of testamentary trusts + wealth assessment etc.

*6 No. of customer referral from the Bank to MUMSS + collaboration between the Trust Bank and MUMSS etc. *7 High-End customers. Over ¥2 bn assets *8 Semi-High-End customers. Over ¥0.3bn assets *9 Excluding changes in market prices *10 Net increase of subscribers from 2017

FY23

580.0

-

63

Eleven Transformation Initiatives (2)

Asset Management in Japan	FY17	FY18	FY19	Changes*1			FY20		FY23
(Corporate)	5.1	5.9	6.6	0.7	6.9	10.1
No. of customers*2(thd)
(Individual / Corporate)	45.1	47.6	44.9	(2.7)	49.8	-
Investment assets*3(¥tn)
	Individual investors	24.4	24.2	22.5	(1.7)	25.3	-
	Corporate investors	20.7	23.4	22.4	(1.0)	24.5	-
Institutional Investors	FY17	FY18	FY19	Changes*1			FY20		FY23
Client value*4	100	89	101	12pt			106		-
Operating income from IS*5business	26.0	35.1	40.8	5.7	36.7	48.4
(¥bn)
Global CIB	FY17	FY18	FY19	Changes*1			FY20		FY23
Distribution amount*6(¥tn)	19.6	22.8	21.4	(1.4)			24.7		-
Distribution ratio*7	46%	59%	48%	(11ppt)			53%		-

*1	Increase / decrease compared to FY18
*2	Number of corporate customers with investment products *3 Reflecting changes in market prices
*4	Quasi sales & trading profits in institutional investors business. Indexation using in FY17 as 100	*5 Investor Services
*6	Distribution amount = Arrangement amount - Final hold amount (Syndicated loan, Project Finance, Securitization, Aviation Finance, etc.)
	+ Securities' arrangement amount of DCM, ABS, etc.	64
*7	Distribution ratio = Distribution amount / Total amount of loans to global corporate customers

Contribution to solution for social issues

The spread of COVID-19 has resulted in growing public expectations regarding corporate initiatives

that address social issues

Acceleration of social issue embracement, contribution to sustainable social growth

Combining social issue resolution with MUFG's strategy; tackling MUFG's sustainable growth

Major initiatives for sustainability

Sustainability promotion structure

Social

• Support for development of SMEs' industries
• Public infrastructure finance
• Financial inclusion in Southeast Asia, etc.

Further initiatives

Focus on responding to social issues such as healthcare and education etc. which attract more attention than ever

Environment

• Promotion of renewable energy financing
• Shift to 100% use of renewable energy sources forin-house electricity by FY30
• Enhancement of disclosure of TCFD*1
• Strengthening policy for sectors where finance is prohibited / restricted, etc.

Board of Directors

Executive Committee

Sustainability Committee

Discuss on group's initiatives for resolution

of environmental and social issues

NEWChief Sustainability Officer

Governance

Person responsible for promoting initiatives for sustainable growth

•	Secure diversity of Board members (specialty/region/gender)
•	Strengthen monitoring system of material issues by Board of Director

NEW

External advisors

•Strengthen corporate governance structure on a group-wide, cross-

reginal basis, etc.

*1 Task Force on Climate-related Financial Disclosures

Utilization of external expertise

65

Progress in sustainable finance

FY19 results

(¥tn)				FY19 results		FY30 goals*1
		Arrangement of loans and project finance for	0.9
		renewable energy projects, etc.
						8.0
Environment		Underwriting of green bonds	0.5
		Others		0.8
Social		Finance for social infrastructure,	0.9
	energizing of local communities, etc.		12.0
Others		Fields spanning both environment and social	0.6
Total				3.7		20.0

Major initiatives

• Maintain the globallytop-level(2019: $3.4bn/ranked second in the world*2) on the global private finance lead arrangers league table in the field of renewable energy project financing
• No.1 green bond underwriter in Japan(27.4%*3) for domestic public offerings (including denominated in foreign currencies)
• Issued first social bondas a Japanese financial institution
• Provide new products and services, such as thefirst sustainability linked loan in Japan

*1	Set goals in FY19 *2 Source: Bloomberg New Energy Finance ASSET FINANCE/Lead arrangers LEAGUE TABLE
*3	Figures calculated by Mitsubishi UFJ Morgan Stanley Securities on a pro-rata by securities company basis. Based on cumulative underwriting	66
	amount from FY16 to FY19

Initiatives to counter climate change (TCFD)

Governance

Strategy

Risk

management

Metrics and

targets

: New initiatives since FY19

• Environmental and social issues, including climate change are deliberated by the Sustainability Committee under the Executive Committee and are reported to the Board of Directors
• Specific themes associated with climate change are also deliberated by the Risk Management Committees, Investment & Loan Committees and Investment & Credit Committees and are reported to the Executive Committee and the Board of Directors
• Appointed external advisorsto exchange opinions with the Board members
• Provide finance support for the improvement of energy efficiency, the use of alternative energies, and the use of IT technologies etc.
• Set MUFG Environmental and Social Policy Framework to restrict transaction with sectors that contain high environmental risks
• Conduct scenario analysis: Limited impact of transition and physical risks on credit portfolios*1
• Recognized climatechange-related risks as one of the top risks
• Conduct enhanced due diligence and management consultation for projects with environmental risk concerns
• Measure our own GHG emissions
• Set Sustainable Finance Goals and monitor the progress
• Measure the proportion ofcarbon-related assets in the portfolio
• Measure CO2emissions associated with financing for power generation projects

*1 Results based on the sectors and assumptions currently to be measured. Continuously expand risk and sectors and improve measurement methods	67

Insights offered by outside directors

－ Independent outside directors accounting for the majority of the Board of Director membership

－ Diversified director composition from various perspectives such as expertise, regionality and gender

(Planned for June 29, 2020)

(Candidates for AGM in June 2020)

Current position at MUFG

Other public

Expertise

and committee-related

Co. Boards

Business

Finance

Accounting

Law

Name

Duties *1

(#)

Admin.

Director

Mariko

Reelected

1

Nominating, Compensation

1

-

●

-

-

Outside

Fujii

Risk (Chairperson)

Independent

Keiko

Newly elected

2

1

-

●

-

-

Outside

Honda

Independent

Kaoru

Reelected

Director

3

0

●

-

-

-

Outside

Kato

Audit

Independent

Haruka

Reelected

Director

4

3

-

-

-

●

Outside

Nominating

Matsuyama

Compensation (Chairperson)

Independent

Toby S.

Reelected

Director

5

0

-

-

-

●

Outside

Myerson

Risk

Independent

Director

Hirofumi

Reelected

6

Nominating

4

●

-

-

-

Outside

Nomoto

Compensation

Independent

Yasushi

Reelected

Director

7

2

●

-

●

-

Outside

Audit

Shingai

Risk

Independent

Tarisa

Reelected

Director

8

1

-

●

-

-

Outside

Watanagase

Risk

Independent

Akira

Reelected

Director

9

0

-

-

●

-

Outside

Yamate

Audit (Chairperson)

Independent

*1 As of end Apr 2020.

Nominating: Nominating and Governance Committee member

Audit: Audit Committee member

68

Compensation: Compensation Committee member

Risk: Risk Committee member

Compensation policy for individual executives

< Philosophy and objective > From "Policy on Decisions on the Contents of Compensation for Individual Executives, etc."

• Prevent excessiverisk-taking and raise motivation of Executives, etc., to contribute not only to the short-term but also to the medium- to long-term improvement of financial results, while also further driving measures aimed at taking on the challenges of reform implementation, thereby improving our competitiveness and enabling sustainable growth and the medium- to long-term enhancement of the enterprise value of the Group
• This policy has been prescribed in accordance with the business performance and financial soundness of the Group and applicable Japanese and overseas regulations regarding compensation of executives and is designed to ensure high objectivity and transparency in the determination process of compensation for executives

Ratio*1	Type			Evaluation method		Timing of		Method of
			Payment		payment
1	Annual base		- Paid based on position				Cash
salary		- Includes "Director allowance", "Committee member (chairperson)		Monthly
	(Fixed)		allowance", "Overseas representative allowance", etc.
	Stock		Base amount by position		At the time
	compensation			of		Shares
	(Non-performance-based)					retirement	50%
1	Stock			Performance factor*3[medium/long-term evaluation] <50%>				Cash
	Base amount	1）Consolidated ROE (25%) 2）Consolidated expense ratio (25%)		Upon the
	compensation			50%
				termination of
	(Mid-tolong-term		by position	Performance factor*4[single FY evaluation] <50%>
			MTBP	*7,8
	performance-based*2)			1）Consolidated net business profits (25%)
				2）Profits attributable to owners of parent (25%)
				Performance factor*5(quantitative evaluation) <60%>
	Cash bonus			1）Consolidated NOP (20%)
			2）Profits attributable to owners of parent (10%)
1	(Short-term		Base amount	3）Consolidated ROE (20%)		Annually		Cash
performance-		by position	4）Consolidated expense ratio (10%)
	based*2)			Status of execution of duties of Executives, etc.*6
				(qualitative evaluation factor) <40%>
*1 As for the case of President and Group CEO of MUFG *2 Range: 0-150% *3 Rate of attainment of targets of the indicators in the MTBP
*4 Comparison of the rate of increase in the indicators from the previous fiscal year with that of competitors
*5 Rate of increase / decrease of the indicators from the previous fiscal year and the rate of attainment of targets of these indicators
*6 Determined exclusively by independent outside directors at the Compensation Committee for executives *7 Subject to malus and claw-back clause, etc.	69
*8 Shares acquired during the term of office shall be held continuously until retirement in principle

ROE / EPS

ROE										Consolidated
10%			8.77%	9.05%	8.74%			MUFG basis*1	JPX basis
	6.89%	7.75%*2				7.63%	7.25%	7.53%
							6.45%
			8.0%	8.1%
4.92%		7.4%*2	7.4%
6.6%
5%					6.2%	6.0%	6.3%		3.85%
					5.4%
4.9%
										3.3%
0%
FY09	FY10	FY11	FY12	FY13	FY14	FY15	FY16	FY17	FY18	FY19

EPS

Consolidated

(¥)

80			68.29	73.22	68.51	68.28	74.55
		66.91
60			58.99
		47.54*3				40.95
39.94

1. 29.56

0

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

*1

Profits attributable to owners of parent

×100

{(Total shareholders' equity at the beginning of the period + Foreign currency translation adjustments at the beginning of the period)

+ (Total shareholders' equity at the end of the period + Foreign currency translation adjustments at the end of the period)} / 2

*2

11.10%(MUFG basis), 10.6%(JPX basis) before excluding negative goodwill associated with application of equity method accounting on our investment in Morgan Stanley

*3

¥68.09 before excluding negative goodwill associated with application of equity method accounting on our investment in Morgan Stanley

70

TLAC requirement- The best capital mix and external TLAC ratio

• Aim for optimal balance between capital efficiency and adequacy in qualitative and quantitative aspects － Control necessary and sufficient level of capital with utilization of AT1 / Tier2
  － Maintain sustainable external TLAC ratio for the long term by raising external TLAC eligible senior debt

	External TLAC ratio			MUFG's RWA*1based external TLAC ratio

	As of end	Minimum requirement
		From end
	Mar 20	From end
		Mar 19	Mar 22
Risk weighted	18.62%	16.0%	18.0%
asset basis
Total exposure	7.38%	6.0%	6.75%
basis

MUFG is the primary funding entity,

which is designated as the resolution entity

in Japan by FSA

As of end Mar 2020 Minimum requirement

4.2%

2.5%	Other TLAC
Eligible Debt*2
2.3%	Contribution of
1.6%
DIFR*3: 2.5%
	Tier2: 2.0%
7.8%	AT1: 1.5%
	CET1: 4.5%

Regulatory

4.0%Capital Buffers*4

4.0%

External TLAC ratio	Total capital ratio	External	Total
TLAC ratio	capital ratio
18.62%	15.87%
16%	12%

*1 Risk weighted asset

*2 Including adjustment of difference between calculation method of total capital ratio and external TLAC ratio and adjustment of amount of other TLAC eligible liabilities owned by the issuer's group, etc.

*3 Contribution of Deposit Insurance Fund Reserves : Japanese Deposit Insurance Fund Reserves fulfill the requirements for ex-ante commitments to recapitalize a G-SIB

in resolution set out in the FSB's TLAC termsheet

（Can include 2.5% and 3.5% of RWAs from end Mar 2019 to Mar 2022 and after end Mar 2022, respectively, in external TLAC ratio）

*4 CET1 Buffer applicable to MUFG: G-SIB Surcharge:1.5%, Capital Conservation Buffer:2.5%, and Counter-cyclical Buffer:0.01%

71

TLAC requirement- Issuance track record & redemption schedule

TLAC-eligible senior debt*1

(US$bn)
					Issuance track record*2					Redemption schedule
20				(1.0)	14.2	(1.6)
15
				0.9	11.7
10			8.5	8.9		1.1	0.3		7.0	8.0
			1.4					6.7	6.0
			5.0						0.5
				13.2
										0.9		0.3					3.5
5					10.3		2.6			1.4	2.4		2.3	2.6
			7.5				7.5	5.8	2.0	0.5
											4.4
																		3.0
0
	FY15	FY16	FY17	FY18	FY19		FY20	FY21	FY22	FY23	FY24		FY25	FY26	FY27	FY28	FY29	FY30
		USD EUR	AUD	The amount of buyback

AT1, Tier2 bond

(¥bn)
					Issuance track record*2				Redemption schedule*3
1,000			805
795					749
										666
						640
500	345	405			523		499			404		461
			320	290	250	270	496		262	161	264	285	212
			450			135					155	247				40
			400	320	273		250		95		112 300	114 245	96	79
					155		170	157
0								60	150		150		116
	FY15	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25	FY26	FY27	FY28	FY29	FY30
		AT1 Tier2
*1 All figures are converted into US$ using actual exchange rates as of end Mar 2020
*2 Total of public issuance (excluding the amount of buyback), as of end Mar 2020
*3 Annual figures assuming that all callable notes are to be redeemed on their respective first callable dates. Tier2 contains Basel II Tier2 sub notes issued by		72
the Bank and the Trust Bank (including their overseas special purpose companies), respectively