Mitsubishi UFJ Financial : Strategic Initiatives for Enhancing MUFG’s Asset Management Business

Mitsubishi UFJ Financial Group, Inc. (MUFG)

Mitsubishi UFJ Trust and Banking Corporation

Strategic Initiatives for Enhancing MUFG's Asset

Management Business

Tokyo, July 31, 2023 --- MUFG today announced that it has decided to alter the capital ownership of Mitsubishi UFJ Kokusai Asset Management Co., Ltd. ("MUKAM"), and has commenced detailed deliberations toward that end. This is a part of strategic initiatives for our asset management business-one of the growth business fields that MUFG is focusing on-in order to foster a capital cycle that will contribute to solving social issues, economic growth, and heightened transparency within its governance structure.

In addition, in line with the July 29, 2022 "Announcement of Strengthening the Group's Asset Management Business through Business Integration [1],"MUKAM has signed an agreement to conduct an absorption-type split agreement for the transfer of business functions.

1. "Announcement of Strengthening the Group's Asset Management Business through Business Integration" July 29, 2022https://www.tr.mufg.jp/english/pressreleases/pdf/20220729_1.pdf

1. Strategic initiatives to enhance trust in the asset management business

As MUFG aims for economic growth and societal transformation, expectations surrounding the roles of asset management companies have significantly increased. Accordingly, we have been pursuing certain group-based initiatives, such as bolstering our sustainable investment efforts and elevating our active investment capabilities through the recent transfer of MU Investments Co., Ltd.'s ("MUI") asset management business to MUKAM. In order to meet the growing expectations on the asset management business, MUFG will conduct an in-depth review towards further strengthening this business, with a particular focus on enhancing product offering capabilities and strengthening investment expertise.

In Japan, it is crucial to create an environment in which new funding sources from individuals, whose main assets are deposits and savings, can be realized. This will facilitate economic growth through a positive financial cycle, which will in turn promote individual asset formation. As an asset management company, MUKAM has long focused on facilitating the shift from savings to asset formation by raising awareness of investment trusts as a form of financial infrastructure, seeing such a task as a priority social issue.

In order to accelerate these initiatives and enhance the trust placed in asset management by a wide range of stakeholders, it was decided to transfer all MUKAM shares held by

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Mitsubishi UFJ Trust and Banking Corporation to MUFG in April 2024 with the aim of improving corporate governance and pursuing heightened transparency in our business operations. We will proceed with further consideration and will announce the relevant organizational changes, personnel and other details when they have been decided.

2. Absorption-type company split agreement between MUKAM and MUI

(1) Summary of the agreement

Date of integration	October 1, 2023
Method of integration	MUKAM, as the succeeding company, will assume the rights and
	obligations related to the securities investment and management
	business of MUI as the splitting company, subject to approval at
	an extraordinary general meeting of shareholders of both
	companies, planned for September 29, 2023.
(2) Overview of MUKAM (the succeeding company) as of the date of integration
Current company name	Mitsubishi UFJ Kokusai Asset Management Co., Ltd.
New company name[2]		Mitsubishi UFJ Asset Management Co., Ltd.
Representative		Sunao Yokokawa, President & CEO
Capital		JPY 2 billion
Address[3]		Tokyo Shiodome Building, 1-9-1,Higashi-Shinbashi,
		Minato-ku, Tokyo
Shareholders[4]		Mitsubishi UFJ Trust and Banking Corporation (100%)
Major executives		See Appendix 1
Structure chart		See Appendix 1
(3) Overview of MUI (the splitting company) as of the date of integration
Current company name	MU Investments Co., Ltd.
New company name[2]		Mitsubishi UFJ Real Estate Asset Management Co., Ltd.
Representative		Naokatsu Uchida, President & CEO
Capital		JPY 1.2 billion
Address		Tokyo Shiodome Building, 1-9-1,Higashi-Shinbashi,
		Minato-ku, Tokyo
Shareholders		Mitsubishi UFJ Trust and Banking Corporation (100%)
Major executives		See Appendix 2
Structure chart		See Appendix 2

1. "Notice Regarding Change of Company Name of Mitsubishi UFJ Kokusai Asset Management Co., Ltd. and MU Investments Co., Ltd." October 28, 2022https://www.tr.mufg.jp/english/pressreleases/pdf/20221028_1.pdf
2. Both MUKAM and MUI are planned to be relocated in this integration for the purpose of leveraging the cooperation with other group companies including Mitsubishi UFJ Trust and Banking Corporation's Asset Management Business Unit.
3. Will change to MUFG around April 2024.

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Reference: Overview of the companies subject to the change as of March 31, 2023

Company name		Mitsubishi	UFJ	Kokusai	MU Investments Co., Ltd.
		Asset	Management	Co.,
		Ltd.
Business		Offering,	establishment,	Investment advisory service,
		and	management	of	establishment			and
		publicly		and	privately	management	of	privately
		placed	investment trusts,	placed	funds,	asset
		etc.					management	of	real estate
							investment corporations, etc.
Date of establishment	August 1985			September 1993
Location[2]		1-12-1		Yurakucho,	2-3-11 Kanda Surugadai,
		Chiyoda-ku, Tokyo		Chiyoda-ku, Tokyo
Representative		Sunao		Yokokawa,	Akira Suzuki,	President &
		President & CEO		CEO
Capital		JPY 2 billion			JPY 1.2 billion
Number		799					103
of employees
Shareholders		Mitsubishi	UFJ	Trust	and	Mitsubishi	UFJ	Trust and
		Banking	Corporation	Banking Corporation (100%)
		(100%)
Assets	under	JPY 25.96 trillion		JPY 1.64 trillion
management

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Appendix 1. Executive members and organization chart of Mitsubishi UFJ Asset Management Co., Ltd. (as of October 1, 2023)

(1) Executive members

Proposed title	Former title (July 31, 2023)	Name
President & CEO	President & CEO	Sunao Yokokawa
Managing Director	Managing Director	Hideo Shirota
Managing Director	Managing Director	Naoki Shinmura
Managing Director	Managing Director	Eiichi Kashiwagi
Managing Director	Managing Director	Akira Takanabe
Managing Director	Executive officer	Kenzo Chikamori
Director	Director	Yutaka Kawakami
Outside Director	Outside Director	Hitoshi Takehara
Outside Director	Outside Director	Kimie Harada
Outside Director	Outside Director	Sadayuki Horie
Outside Director	Outside Director	Shinichiro Inoue
Outside Auditor	Outside Auditor	Takeshi Kimura
Outside Auditor	Outside Auditor	Noboru Fukumoto
Auditor	Auditor	Masatsune Okada
Managing Executive Officer	-	Hideki Nukanobu
Managing Executive Officer	Managing Executive Officer	Tsuyoshi Nakagawa
Managing Executive Officer	Managing Executive Officer	Toshihiro Sekihara
Executive Officer	-	Keisaku Ujihara
Executive Officer	Executive officer	Hidemichi Kanesawa
Executive Officer	Executive officer	Takashi Miyazaki
Executive Officer	Executive officer	Masamichi Takigawa
Executive Officer	Executive officer	Yasuo Sasai
Executive Officer	Executive officer	Ichiro Horiguchi
Executive Officer	Executive officer	Reiko Fujiwara
Executive Officer	Executive officer	Nobutaka Shibuya
Executive Officer	Executive officer	Takashi Okubo
Executive Officer	Executive officer	Kenichi Yoshida

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(2) Organization chart

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