Mitsubishi UFJ Financial : Speech Script （PDF / 2.

FY2023

IR Presentation

May 17, 2024

Mitsubishi UFJ Financial Group, Inc.

• This is Kamezawa. Thank you for taking time out of your busy schedule today to attend this MUFG IR presentation.
• Since CFO Togawa explained the contents of the FY23 financial results at the recent web conference already, I would like to just touch on the financial results very briefly today and focus on the review of the previous medium-term business plan and the new three-yearmedium-term business plan starting this current fiscal year.
• Please proceed to page 6 of the material.

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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)	KS:	Bank of Ayudhya (Krungsri)
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	DS:	Digital Service
the Securities HD (SCHD):	Mitsubishi UFJ Securities Holdings	R&C:	Retail & Commercial Banking
MUMSS:	Mitsubishi UFJ Morgan Stanley Securities	R&D:	Retail & Digital
MSMS:	Morgan Stanley MUFG Securities	CWM:	Commercial Banking & Wealth Management
MS:	Morgan Stanley	JCIB:	Japanese Corporate & Investment Banking
NICOS:	Mitsubishi UFJ NICOS	GCIB:	Global Corporate & Investment Banking
MUAH:	MUFG Americas Holdings Corporation	GCB:	Global Commercial Banking
MUB:	MUFG Union Bank	AM/IS:	Asset Management & Investor Services

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Key messages

FY23 result / FY24 target / shareholder returns

•	FY23 result	¥1,490.7bn in net profits*1, the historical high since MUFG establishment
•	FY24 target	¥1.5tn, setting a new record in net profits
•	Shareholder returns	Continue progressive dividends, FY24 DPS forecast is ¥50, up by ¥9
		compared to FY23
		Repurchase of own shares up to ¥100bn was resolved

Review of the previous medium-term business plan (MTBP)

•	Financial results	ROE was 8.5%, exceeding the target
•	Key strategies	Achieving both improvement of the earning power and enhancement of the
		business resilience such as the sale of MUB and expense reduction,
		strategy for growth and structural reforms significantly exceeded targets

Overview of the new MTBP

•	Basic policy	Positioned as "three years to pursue and produce growth."
		We will serve our commitment to empowering a brighter future, producing
		economic and social value
•	Financial targets	ROE target is Approx. 9%. Aim to increase shareholders value further,
		achieving both steady profits growth and investments for future growth.
•	Capital policy	Basic policy is unchanged. Expanded the target range of CET1 ratio to
		9.5%-10.5% in order to improve the transparency of capital management.

*1 Profits attributable to owners of parent	3

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Contents

FY23 Financial results	5
Review of previous medium-term business plan (MTBP)	8
Overview of new MTBP	15
Details of new MTBP	36
Appendix	54

4

4

FY23 Financial results

5

5

FY23 Financial results Review of previous MTBP Overview of new MTBP	Details of new MTBP

FY23 financial results

－Growth of earning power resulted ¥1,490.7bn in net profits*1, surpassing target.

FY22

FY23

Factors for changes in net profits*3

	Consolidated				After	Changes	(¥bn)				1,490.7
	Results	Results	YoY	adjustment	from
	(¥bn)				of MUB*2	target
1	Gross	4,503.0	4,732.5	229.5	-	-	1,275.0
profits
2	G&A	2,908.7	2,888.7	(19.9)	-	-
expenses		Impact in NOP
	Net
3	operating	1,594.2	1,843.7	249.4	-	393.7
	profits							One-time losses related
	Total credit	(674.8)	(497.9)	176.9	(217.0)	(197.9)	1,164.4	to the sale of MUB*4
4
costs
5	Ordinary	1,020.7	2,127.9	1,107.2	372.1	277.9
profits
6	Net profits	1,116.4	1,490.7	374.2	-	190.7
							FY22	Impact of	NOP	Credit	Others*5 Changes of*6	FY23
								the sale of	etc.	costs	the equity method
								MUB etc.			accounting date
											of MS
	*1 Profits attributable to owners of parent *2 Adjusted reversal of valuation losses included in net extraordinary gains in FY22, out of valuation losses on assets held by MUB, etc. of
	¥893.7bn (after tax). Total credit costs: ¥393.9bn, Ordinary profits: 735.0bn *3 Breakdown is on a after tax basis
	*4 Valuation losses on assets held by MUB, etc. of ¥158.6 (after tax) included in FY22. *5 Absence of one-time costs associated with U.S. pension buyouts ¥(78.1)bn (before tax) and
	loss on sale of shares of Chukyo Bank ¥(40.0)bn (before tax) *6 For FY23, the closing date of MSʼs financial results when applying the equity method of accounting was changed from	6
	as of Dec 31, 2023 to Mar 31, 2024. As a result of this change, for FY23, MSʼs financial results for the 15-months period, including results for the quarter ended Mar 31, 2023, ¥84.1bn
	have been reflected in equity in earnings of equity method investees.

• In FY23, net profits or profits attributable to owners of parent, line 6, was 1,490.7 billion yen, a historical high since the establishment of MUFG. The impact of the sale of Union Bank was reversed in a single year, resulting in an increase of approximately 370 billion yen year on year. The main reason for this was a significant increase in NOP due to enhanced earning power, especially in the customer segments.
• Please turn to page 7, I will talk about the performance target for FY24.

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FY23 Financial results Review of previous MTBP Overview of new MTBP	Details of new MTBP

FY24 target

－FY24 target for net profits is ¥1.5tn

FY23

FY24

Factors for changes in net profits*2

YoY

(¥bn)

Consolidated (¥bn)

Results

Target

Change of the equity method

accounting date of MS

1

Net operating

1,843.7

1,950.0

106.3

1,490.7

1,500.0

profits

2

Total credit

(497.9)

(400.0)

97.9

costs

128.2*1

Impact in NOP

3

Ordinary profits

2,127.9

2,150.0

1,406.6

4

Net profits

1,490.7

1,500.0

93.4*1

FY23

FX

*3

*3

Net gains

Others

FY24

NOP

Credit

fluctuation

etc.

costs

(losses) on

sales of equity

securities, etc.

*1 YoY excluding the impact of change of the equity method accounting date of MS (Ordinary profits: ¥106.1bn, Net profits: ¥84.1). *2 Breakdown is on a after-tax basis
*3 Including the impact of change of the consolidated closing period for KS. Starting from FY24, the consolidated closing period for KS will be changed from Jan-Dec to Apr-Mar,
aligning with MUFGʼs fiscal year. As a result of this change, FY24 financial results are expected to include earnings for a 15-month period, incorporating KSʻs financial results for the	7
quarter ended Mar 31, 2024. The impact of this change on GCB business group is estimated to be approx. ¥20.0bn in profits attributable to owners of parent, based on KSʼs
financial results for the quarter ended Mar 31, 2024, after tax and attributable to MUFG. This estimate is subject to change in line with FX rate, among other factors

• We have set a target of 1.5 trillion yen for profits attributable to owners of parent. The negative impact of yen appreciation in FY24 will be offset mainly by increasing NOP.
• Please turn to page 9.

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Review of previous MTBP

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FY23 Financial results Review of previous MTBP Overview of new MTBP	Details of new MTBP

Financial results

－Earning power has significantly improved, achieving the ROE target. The CET1 ratio has been managed stably

Target for ROE / Capital management

ROE

		8.5%
	7.8%	(8.1%*1)
	7.0%	Target7.5%
5.6%		Achieved

CET1 ratio*2

10.4% 10.3%

10.1%

9.7%

Target range 9.5-10%

FY20

FY21

FY22

FY23

End

End

End

End

3 drivers to achieve ROE target

Mar 21

Mar 22

Mar 23

Mar 24

Profits

(¥bn)

Expenses

(¥bn)

RWA*7

(¥tn)

Net operating profits*3

Net profits

Target

FX impact

Target

FX impact

Target

Target¥1.4tn

Steadily

Approx. ＋¥350.0bn

FY20 level*6200%

Approx. ＋¥13.5tn

End Mar 21 level

*4

Achieved

Over ¥1tn

Expense for

Achieved

Achieved

2,090.0

Achieved

*4 business

2,888.7

130.0

1,842.

CAGR

1,490.7

Performance

growth

Total

linked

24.3%

expense

Increase

Customer 1,247.0

2,672.5

100% 117.8 Decrease

segments

777.0

Base*4

1,012.3

Expense

Expense

Impacts of

ratio

expense

ratio

the sale of

69％

Impacts of*5

61％

MUB

the sale of

MUB

0%

FY20

FY21

FY22

FY23

FY20

FY21

FY22

FY23

FY20

FY23

End Mar 21

End Mar 24

*1 Excluding the impact of change of the equity method accounting date of MS *2 Estimated CET1 ratio on the finalized and fully implemented Basel Ⅲ basis. Excluding net unrealized
gains on AFS securities *3 On a managerial accounting basis *4 On a managerial accounting basis (after adjustment)	9
*5 Impact of the sale of MUB is approx. ¥(210.0)bn *6 Excluding performance-linked expenses
*7 Estimated RWA on the finalized and fully implemented Basel Ⅲ basis. Includes net unrealized gains on AFS securities

• This page is a review of the financial results of the previous medium-term business plan.
• Over the three-year period, our operation had focused on the ROE with profits, expenses, and risk-weighted assets as the three drivers in order to secure achievement of our ROE target of 7.5%. Profits, bottom left, that is profits attributable to owners of parent, exceeded 1 trillion yen three years in a row, reaching 1,490.7 billion yen in FY23, far exceeding the target, as a result of steady completion of our growth strategy and growth in NOP in the customer segment. Considering that the profit for FY20 was 777 billion yen, this means that we have achieved profit growth of over 700 billion yen in three years.
• Expenses, bottom center, excluding the impact of foreign exchange, was controlled below the FY20 level, as originally targeted. Resources generated through structural reforms, including the sale of Union Bank, and control of base expense were redirected to growth areas both in Japan and overseas, leading to expansion of businesses.
• Risk-weightedassets, shown bottom right, were controlled to the equivalent level of that of end of FY20, excluding the impact of foreign exchange rates. Considering the fact that we were able to significantly increase profits, we believe that we were able to thoroughly manage our operations with a focus on risk return.

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FY23 Financial results Review of previous MTBP Overview of new MTBP	Details of new MTBP

Initiatives to increase shareholder value (1)

－Significantly improved ROE and increased shareholder value through three drivers

PBR・ROE trends*1

(PBR) PBR close to 1.0X by steady

ROE improvement and changes

1.2 in business environment

1.0		End
	Mar 24

0.8

0.6

End

Mar 21

0.4

4% 5% 6% 7% 8% 9% (ROE)

PBR PER ROE

Results of the initiatives

	ROE significantly improved
Improvement in RORA	Capital management with the
target range of CET1 capital ratio
1	Net profits		2	RWAs
2	RWAs		3 Shareholdersʼ equity
1 Strategy for growth	1 2 Structural reforms	2 3 Capital management
Result Approx. ¥640.0bn	Result Approx. ¥340.0bn	Dividend︓	¥1.2tn
(vs target +Approx. ¥490bn)	(vs target +Approx. ¥240bn）	Share repurchase︓¥1tn
NOP in customer segments	Expense ratio	Equity holdings
FY20	FY23	FY20	FY23	Sold ¥539.0bn*2
¥1,012.3bn	¥2,090.0bn	69%	61%
		The sale of MUB	Reduced RWA
Customer segments*3	Cost reduction impact*3
(100.0bn)	(210bn)		⇒partially allocated
	to share repurchase

Strategic investments for future sustainable growth (next page)

*1	ROE is Japan Exchange Group basis *2 Acquisition cost basis, sum of the Bank and the Trust Bank	10
*3	Impacts in FY23 compared to FY20

• Page 10 shows our efforts and major achievements to increase shareholder value. Over the past three years we have worked hard on our growth strategy, structural reforms and capital management raising ROE, resulting in a PB ratio near one time. In addition, we have taken steps for future growth.
• Please continue to the next page.

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