Mitsubishi UFJ Financial : Management Message - Our Responses to the COVID-19 Pandemic

Our Responses to the COVID-19 Pandemic

Amid the fallout from the COVID-19 pandemic, which is expected to have significant economic and social impacts at home and abroad, MUFG has placed the utmost priority on swiftly extending appropriate and flexible fundraising assistance and maintaining stable financial infrastructure while ensuring the safety of all stakeholders. Rallying its overall strengths, MUFG is striving to fulfill its mission as a financial institution supporting social infrastructure.

Initiatives for Customers

Fundraising Assistance

We extend a range of support to corporate clients affected by the fallout from the COVID-19 pandemic, helping them smoothly raise funds in the face of drops in sales, the disruption of procurement and other challenges arising from the crisis.

• Set up help desks for those in need of emergency funds due to the crisis
• Launched a special fund
• Began extending interest-free,no-collateral loans
• Temporarily lowered interest rates for some online loan services

executed fresh loans totaling approximately ¥4.0 trillion*2 as of June 2020.

Furthermore, we strive to meet needs among individual customers for funds for maintaining their livelihood by, for example, offering card loan services, while flexibly accommodating their requests with regard to the modification of lending conditions via dedicated desks.

Overseas, our partner banks accommodate fundraising requests mainly from local SMEs by, for instance, offering modified lending conditions.

Measures Undertaken by Our Branches

To date, every consideration has been given to ensuring customer and employee safety as our branches and back-office centers strive to ensure steady and reliable essential financial services and to support stable settlement functions. During the

To ensure the safety of branch visitors and staff, acrylic partitions have been installed on bank counters and at reception rooms in order to prevent the spread of infection through respiratory droplets. Also, we regularly remind customers to maintain social distancing within branch facilities and ask

Today, the total number of consulting cases involving corporate clients affected by the pandemic's fallout amounts to approximately 16,000.*1 Swiftly responding to requests from these clients, we have

*1 The number of applications for fresh lending and the modification of lending conditions during the period from March 10 to June 22, 2020; based on reports from the Bank's domestic branches and its online transactional data

*2 The value of loans executed during the period from March 10 to June 22, 2020 (including loans executed within the limit under commitment lines); based on reports from the Bank's domestic branches

period in which a state of emergency was declared, none of domestic branches run by the Bank and the Trust Bank suspended even a part of their operations.

them to refrain from non-essential,non-urgent transactions. In addition, we are carrying out a proactive campaign aimed at encouraging

Initiatives for Employees

Provision of Online Banking Services We offer various online banking services for individual customers and corporate clients.

customers to shift to non face-to-face transactions via ATMs and online banking.

For individual customers

● Mitsubishi UFJ Direct

● A "smart" procedure for

In Japan, we introduced a "split team" system* while acting quickly to develop a structure for remote working. As a result, around half of our domestic employees, the majority of whom work at headquarters, were able to stay working via our remote infrastructure (as of April 2020).

Other measures to prevent the spread of the virus also include the introduction of staggered work shifts

at branches and back-office centers, both of which constitute key components supporting MUFG's operations. In addition, around 1,000 staff members have been dispatched from headquarters to these facilities to ensure stable operations are maintained.

• An operational system in which a conventional business unit is divided into two or more number of teams

In Japan, the volume of online transactions, including bank transfers, and the number of online applications associated with administrative procedures both grew significantly due to the enforcement of "Stay-at- home" protocols. For example, monthly increase of

opening bank accounts

● App designed to assist hassle-

free procedures

Contribution to Society

users of "Mitsubishi UFJ Direct," online banking service targeting individual customers in March 2020 has grown to approximately three times compared to the one in March 2019.

We also provide SME customers holding MUFG Bank accounts for a certain period of time with the "Biz LENDING" online financing service that enables them to complete all necessary procedures online. The number of loan applications filed via this service in March 2020 was approximately three times its size in November 2019.

For corporate clients

• BizSTATION
• MUFG Biz

Amid the COVID-19 pandemic crisis, we made donations and otherwise strove to fulfill our responsibilities as a corporate citizen.

• Extended a total of ¥2.5 billion in financial assistance to medical institutions, students struggling to pursue higher education and maintain their livelihood and artists intending to continue their activities
• Launched "MUFG Medical Fund" boasting a total asset value of ¥10.0 billion, with the aim of assisting venture startups in their R&D efforts to develop and manufacture a cure for such diseases as COVID-19

In addition, we have donated a total of ¥500 million to the Japanese Red Cross Society and the All Japan Hospital Association. The donated funds were accumulated via a scheme run by the Bank and the Trust Bank that sets aside a certain amount of money for donations upon every occurrence of an online transaction (via Mitsubishi UFJ Direct, etc.). We hope that doing so helps communicate our gratitude to medical practitioners along with the customers who wanted to thank these people.

22 MUFG Report 2020

MUFG Report 2020 23