FY2023

IR Presentation

May 17, 2024

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)

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

2

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

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

FY23 Financial results

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

1,843.7

3

operating

1,594.2

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 MS's 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, MS's 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.

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-taxbasis

*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 MUFG's fiscal year. As a result of this change, FY24 financial results are expected to include earnings for a 15-month period, incorporating KS's 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 KS's

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

Review of previous MTBP

8

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

1,842.9

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

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 Shareholders' 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

⇒partially allocated

(100.0bn)

(210bn)

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

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Mitsubishi UFJ Financial Group Inc. published this content on 16 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 May 2024 23:03:09 UTC.