Mitsubishi UFJ Financial Group, Inc. Mitsubishi UFJ Trust and Banking Corporation Mitsubishi UFJ Securities Holdings Co., Ltd. Mitsubishi UFJ Asset Management Co., Ltd. KOKUSAI Asset Management Co., Ltd.

Merger of Mitsubishi UFJ Asset Management and KOKUSAI Asset Management Tokyo, December 12, 2014 --- Mitsubishi UFJ Financial Group, Inc. (MUFG) and its subsidiaries Mitsubishi UFJ Trust and Banking Corporation (MUTB) and Mitsubishi UFJ Securities Holdings Co., Ltd. (MUSHD) have been considering the creation of a new organizational structure to strengthen the Group's asset management business. As part of these efforts, Group asset management companies Mitsubishi UFJ Asset Management Co., Ltd. (MUAM) and KOKUSAI Asset Management Co., Ltd. (KAM) have signed a "Memorandum of Understanding on Merger," and have begun discussions and preparations towards a merger. 1. Aims of the merger

With the investment trust market expected to grow as Japanese individuals shift their assets from savings to investment, there is strong demand for further strengthening of asset management companies' investment capabilities and for raising quality as part of asset managers' fiduciary duty. In order to flexibly respond to these changes in the environment, it has been decided to merge MUAM and KAM.
Post-merger, the new company will make use of the strengths of both MUAM and KAM, enhance its asset management ability and plan to increase management efficiency to create a structure that can satisfy customers by providing higher quality and higher value-added asset management services.

2. Asset management services post-merger

Post-merger, the new company will aim to enhance its services by combining MUAM and KAM's accumulated know-how to enhance its line-up of products that address a broad range of customer needs while working to make services more convenient for customers.
Regarding the asset management services that both MUAM and KAM are currently providing, the new company will continue to provide those services.

3. Merger time-frame

The merger of MUAM and KAM is targeted to be concluded on July 1, 2015.
Details of the new company's post-merger name, shareholding structure, personnel, etc. will be considered and disclosed when these details have been decided.
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MUFG will seek to realize synergistic effects throughout the Group between the post-merger new company's high quality and sophisticated products and services, the Group's outstanding business base,
investment infrastructure and resources, solidifying its top class position in the asset management business.

(Reference) Overview of merging companies

Mitsubishi UFJ Asset Management
(As of September 30, 2014) KOKUSAI Asset Management
Company name
Principal business
Co., Ltd. Investment trust management
and advisory business
Co., Ltd. Investment trust management
and advisory business
Date of establishment August 1985 March 1983
Head office Chiyoda-ku, Tokyo Chiyoda-ku, Tokyo
President & CEO Takashi Kanagami Hiroyuki Tanaka
Total outstanding
shares
124,098 shares 12,998 shares
Capital JPY 2.0 billion JPY 2.68 billion
Investment trust asset balance
Publicly offered: Privately placed:
Total:
JPY 6,129.7 billion
JPY 2,474.2 billion
JPY 8,604.0 billion
Publicly offered: JPY 3,481.9 billion
Privately placed: JPY 27.3 billion
Total: JPY 3,509.2 billion
Number of employees 442 329
Major shareholders
(shareholding ratio)
Mitsubishi UFJ Trust and Banking (50%) Mitsubishi UFJ Financial Group (25%) The Bank of Tokyo-Mitsubishi UFJ (25%)
Mitsubishi UFJ Securities Holdings (82%) The Bank of Tokyo-Mitsubishi UFJ (10%) Mitsubishi UFJ Trust and Banking (7%)
Business results
Fiscal year ended
March 31, 2013
Fiscal year ended
March 31, 2014
Fiscal year ended
March 31, 2013
Fiscal year ended
March 31, 2014
Operating revenue JPY 48.56 billion JPY 53.66 billion JPY 34.21 billion JPY 36.80 billion
Ordinary income JPY 8.48 billion JPY 9.87 billion JPY 8.67 billion JPY 8.78 billion
Net income JPY 5.40 billion JPY 6.73 billion JPY 5.32 billion JPY 5.81 billion
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