Mitsubishi UFJ Securities Holdings Co Ltd 2020-10.09.40 on iSTOXX MUTB Japan Top Share Net Return Structured Note — UFJ Holdings — Merger or Acquisition (February 2005)
49 slides from Mitsubishi UFJ Securities Holdings Co Ltd 2020-10.09.40 on iSTOXX MUTB Japan Top Share Net Return Structured Note's merger presentation, Feb 22, 2005
Slide 1: Filing under Rule 425 under the U.S. Securities Act of 1933
Filing under Rule 425 under the U.S. Securities Act of 1933 Filing by: UFJ Holdings, Inc. Subject Company: UFJ Holdings, Inc. SEC File No. 333-109072
Slide 2: Agreement on the Merger Ratio Presentation
Agreement Presentation February Ryosuke UFJ Holdings, Tamakoshi, 22,onMaterial 2005 the Inc.Merger President Ratio& CEO
Slide 3: Disclaimer
Disclaimer respective outlook prove by F-4, been financial MTFG, when obtained toatbe information the group filed, UFJ This incorrect time from and for document companies that publicly additional the and used this other may in contains document (collectively, available this companies not information
Slide 4: Table of Contents
< Transaction Table of Contents Summary > Transaction Summary < Agreement on the Merger Ratio > 4 Our Commitment and Achievement Rationale of Merger Ratio 6 Expected Synergies of the Combined Entity 7 Value Creation for UFJHD Shareholders 8 Analysis and Evaluation of the SMFG Proposal 9 < Business P
Slide 5: Transaction Summary
Transaction Summary 3
Slide 6: Transaction Summary
Transaction Name: Mitsubishi Timing: Merger Listing: Management: *1 *2 common Full MTFG holders supplements directors anyThe New shareholder texts Mitsubishi in Board Structure: Ratio: of Tokyo group’s Expected of shares of connection UFJ’s Tokyo UFJ, Summary the toof Chairman: 0.62 /those of above
Slide 7: Agreement on the Merger Ratio
Agreement on the Merger Ratio 5
Slide 8: Our Commitment and Achievement
Ourthe UFJHD Achieve Implementation Execution Accelerated Reduced Management Continuous Revenue Achievement As Commitment market Management an problem target ofappropriate implementation problem Radical foresees of valuation (business of anloan and Strategy Appropriate loan Problem committed Achieve
Slide 9: Rationale of Merger Ratio
Rationale Following Relative Implied Mar. Dec. Premium (UFJHD 10-Feb 16-Dec 21-Oct 26-Aug 1-Jul 0.30 0.40 0.50 0.60 0.70 Merger Jul. Proposal Feb. Sep. Agreement Aug. Basic *1 *2 capital Closing Compared 13, 14 9. 17, 18 10 04(A) 06(E) 07(E) 11, 12 agreement enhancement, 2004 04 04 Ratio 2005 2004 S
Slide 10: Expected Synergies of the Combined Entity
Expected After European Considered Assumed FY (JPY Business A R Cost P -(Integration Approx. Net *1 *2 *3 410) er evenue pprox. Aggregated Average Before 08 04 year Synergies income Savings Bn) basic Target Forecast average 1,600 2,500 +220 +40 +240 1,100 Enhancement profit Synergies two-step bank c
Slide 11: Value Creation for UFJHD Shareholders
Value Discount Terminal Market MTFG Present Merger 1 UFJHD (Feb.17, Theoretical JPY New *1: Fully-diluted 0.62 6,365 569,000 4,203 76,334 Co. Creation Cap Ratio Value key share 2005) PER rate Bnvalue 13.4% *1 assumptions of price of for (Feb. 8.5%: basis Expected 12.0x: ofUFJHD creation UFJHD 17, As
Slide 12: Analysis and Evaluation of the SMFG Proposal
Analysis The Capital JPY DTA Relatively High Asset Problem Business Operationally Complementary MTFG: UFJ: Strengths Relative Revenue “Cross-sell” Synergies Cost Negative Steady Merger Others Detailed Uncertainty Subject Note: planned 1.4 2.5 savings /Chubu quality Figures Quality Tier progress Base
Slide 13: Business Plan for the New Group
Business Plan for the New Group 11
Slide 14: Key Financial Targets
Key (JPY Forecast FY04 Target Change Business (consolidated) Expense 1,600 2,500 +50-60% (10 Net 50-55% 40-45% 1 -A ROE (410) Approx. *1 *2 <Macro 3M FY06 FY07 FY05 FY08 10Y 0.29% 0.41% 0.13% 0.46% JPY/USD 2.22% 1.81% 2.29% Real 105 1.8% 1.0% 1.9% 1.1% ,100 pprox. Simple Before pts) Tibor Income Fin
Slide 15: Expected Synergies (Revenue Enhancement)
Expected Net Annual JPY Revenue < For The *1 Major Investment Retail Overseas Corporate Trust Enhanced Revenue Net the Revenue level 40 Asset Sources increase first Bn Increase Enhancement services, Synergies of product Enhancement product one decrease Synergies ofin to inRevenue development gross r
Slide 16: Expected Synergies (Cost Savings)
< Cost Cost More Annual JPY Headquarters: Subsidiaries: *1 (aggregation One-Time FY05-09 Summary Tax, HQ Major Staff Gross Reallocate System Complete Expected Branch Retail: *2 expected Cost In Integration, 240 Corporate Savings savings reduction: Reduction/Reallocation addition than reduction Cost
Slide 17: Business Portfolio
Further Create Business FY04 FY08 (85-90% JPY (75% 10% Others 35%+ 15%+ Retail 2-4% Trust 20-25% *1 55-60% 50% Corporate 1-2% Simple 2.5 1.6 Assets from Target Forecast*1 more (incl. strengthen Tnfrom Portfolio Profit combined core stable Treasury/UNBC) core (consolidated) business 3and business cor
Slide 18: Retail - Profit Target
Retail Aim Earnings Interest Gross Testamentary Others Operating Business Synergies Investment JPY Consumer FY04 subsidiaries*2 Loan *3 *1 *2 Breakdown Simple Subsidiaries 120-130 270 toForecast profit –(security triple rate Profit Bn Drivers Profit profit cost combined Finance Product increase busi
Slide 19: Corporate - Profit Target
Corporate 35-40% Earnings Gross Real Operating Interest Business Synergies (Business SME Overseas JPY Investment Securities FY04 Settlement *1 *2 *3 Simple Breakdown Domestic 30-40 920 Estate Lending Forecast profit rate increase Bn Drivers Profit profit profit) –combined cost Bn Banking*3 increase
Slide 20: Trust Assets - Profit Target
Aim Earnings Trust Gross Operating Business Custody Synergies Corporate JPY Investment FY04 *2 *1 Breakdown Simple 5-10 24 to Assets Business Forecast profit triple BnDrivers Profit profit Bn cost Pension combined Trust –(Business business Profit of (other *1 Target (Asset *2 changes FY08 Target bas
Slide 21: Schedule Going Forward
Schedule Going Forward 19
Slide 22: Schedule Going Forward
Schedule By 2005 Signing FY04 Notification Middle End General October Closing (Plan) the ofEarnings end May June of of Date Shareholders’ 1st Going June Merger ofofof April General Announcement the Forward Agreement Planned Meeting Shareholders’ Merger Establishment Meeting of Mitsubishi UFJ Financi
Slide 23: Filings and Forward-Looking Statements
Filings Mitsubishi Holdings, the 4 www.sec.gov. calling, UFJ MTFG 26F In Hirotsugu_Hayashi@mtfg.co.jp 81-3-3240-9059 Fifth on Forward-Looking This statements expectations “anticipates,” reasonable, and information under SEC. (if addition public Form U.S. submit generally Marunouchi CONTACT: filed),
Slide 24: Data Book on the Agreement on the Merger Ratio
Agreement Data February Book22,on2005 the Merger Ratio
Slide 25: Disclaimer
Disclaimer respective outlook prove by F-4, been financial MTFG, when obtained toatbe information the group filed, UFJ This incorrect time from and for document companies that publicly additional the and used this other may in contains document (collectively, available this companies not information
Slide 26: Management and Integrated Risk Management Structure of the New Group
Management Integrated New Risk Internal Close Financial Accounting General Credit Market Retail Assess BSC (Cascading Operational Corporate Information Trust Compliance Implementation Data 3 management Approach Book trust securities bank assets cooperation risk effectiveness risk audit affairs/ Plan
Slide 27: Five Competitive Advantages of the New Group
Five Aim 1. 2. 3. 4. 5. Data 4 Japan’s Highly Strong to Competitive Book join Business Financial/Capital Corporate Complementary Preeminent the “Global Advantages Foundation Governance Global Top Business Foundation 5”Banking Based byand leveraging and Transparent on Network Networks Retailfive Depo
Slide 28: Highly Complementary Loan Portfolios
Highly Loan 5% MTFG UFJ 30% 10% New 44% 19% 28% Large 8% 27% Overseas Note: 32% SMEs 37% 23% Individuals the Data 5 non-consolidated Book Group Portfolios MTFG corporations Complementary (Simple figures (Sep.04) Combined) are figures Businesses the sum of UFJ of 1the Bank non-consolidated (including
Slide 29: Highly Complementary Domestic and Overseas Networks
Highly Domestic Overseas 366 400 546 600 Central 26 E 148 300 263 1 22 212 MTFG Western Note: 100 150 186 200 M 0 50 81 Data UFJ 6 00 astern TFGBook For Complementary Japan Japan Total Total and MTFG, Overseas sum ofNetwork Businesses BTM and BTM, Mitsubishi (Sep.04) 2Mitsubishi Trust Trust; and Mit
Slide 30: Strong Capital Base and Stronger Earnings
Strong Stronger Early Capital (JPY MUFG (Simple MTFG UFJ Est./Target FY04 2.20 5.52 JPY Government 0.00 Retained (1.44) 1.65 0.21 1.40 JPY1.1 FY08 Deduction 2.15 2.81 4.97 Risk (0.07) (0.89) (0.26) BIS 43.20 54.45 97.66 9.92 10.92 10.48 (Reference) 5.10 5.66 Tier 0.80 4.02 4.12 *1 1.85 7.39 4.21 Dat
Slide 31: Aim to Join the Global Top 5
Aim (JPY As Financial Rank Market C 1 ING 16 6.9 MTFG 15 26.0 H 2 6.8 BNP 17 19.9 3 6.6 A 4 19.7 J17.8 5 B 6 14.4 Mizuho 21 11.6 R 7 6.2 11.0 W M 9 10.9 UBS 10 4.7 SMFG 31 10.1 + 9.8 Source: 3.2 UFJ 47 Data 8.P.MORGAN itigroup ank ERKSHIRE OYAL SBC IG +TFG ELLS of +Group to Book AG Paribas Tn) of +
Slide 32: Aim for Top ROE Among Japanese Banks
Aim Mizuho SMFG JP MUFG Citi 20% *1 BoA ROE Tier 10% 5% 0% MTFG+UFJ Source: *1: * Data 9 Simple Excluding Ito Book Target Ratio achieve Company FG combined Comparison trust approx.17% disclosure preferred basis ROE (As securities of inMar.04 FY08 for Japanese banks; Dec.03 for US Banks Circles indic
Slide 33: Retail - Sales of Investment Products
Retail 1 - Sales of Investment Products Expand investment Establish sales structure product tailored salesfor by each takingcustomer advantagesegment of changing by strengthening individual financial product development asset structure capability and increasing sales force Individual Financial Asset
Slide 34: Retail - Consumer Finance
Explore Fully Sample: Major Business Resource 5% 1% Others Credit 37% 25% Retail 42% Consumer 7% Loan 63% 20% Banking Balance Integration Interest from Targeted Target Management Customers Bank Individual Existing 9-15% (Revolving/Cashing) Yen New with UFJ NICOS DC Mobit (Direct T Approx. 15-18% JPY
Slide 35: Retail - Housing Loans
Retail Strong Aim Major Business Product -Resource Housing Other 200 Private 100 150 F 0 50 FY03 FY98 FY99 FY00 FY01 (Households Projected Residential 5,500 5,000 (JPY Up 4,000 (Left-axis) Origination 4,500 *1 2010 *2 1980 1985 1990 1995 2000 2005 2,000 2,500 (Right-axis) Balance 3,000 3,500 Source:
Slide 36: Retail - Share Increase and Integration Effects
Share Increase Integration Retail Opportunity MTFG+UFJ Credit Residential Cost (Note) 32 31 SMBC Tn 60 Approx. Mizuho New by Segments Number Customer 2M -10M JPY 30M Data 13 Mutually Increase Strategically Jointly Share Expand Rationalization More Systems JPY Customer 10M 40Tn 0.5M 25Tn 1-2Tn Reduct
Slide 37: Corporate - SME Business Strategy
Develop Expand New Expanding Strategic Product -Strengthening SME Significant Existing *Association Approx. Total (16%) Customers Potential 1.8M Source: (84%) Avg. (JPY Corporate 150 F 0 90 200 100 400 110 600 800 120 1,000 130 1,200 1,400 1,600 140 FY03 Data 14Actively Y03 Establish Strengthen Prom
Slide 38: Corporate - Provide Investment Banking Services
Corporate Provide Major Business -Resource Domestic 60 F 10 20 30 40 Real Revenue (JPY 5.0 350 400 Structured 250 4.6 Others 300 4.8 Syndicated 200 4.4 Derivatives 4.2 150 Securitization 50 FY05 FY06 FY07 FY08 4.0 100 FY04 * 0 FY03 *2 Data 1Y07 Provide Promote Strengthen Enhance Reallocate Our Inves
Slide 39: Corporate - Establish Leading Settlement Services
Corporate Establish Major Resource Domestic (USD 300 400 Business 30 UFJ 40 -50 FX S 0 BTM 10 Bank New (FY03) (FY08 On-line (Number Transfer % (%) (M) Number 250 21 (Right-axis) Increase 20 (Left-axis) FY07 17 100 18 150 19 200 FY06 FY05 FY04 FY03 FY08 Data 16imple Leverage ofVolume Business Book Pr
Slide 40: Corporate - Establish Dominant Overseas Presence
Corporate Establish dominant Major Business Product -Resource Revenue Target Expect Asia FY04 Europe FY08 *1 Japanese Overseas New 10,000 50 (Number) 12,000 India/ ASEAN Europe/Africa/Middle Asia-Oceania US 10 China 2,000 20 4,000 NIES Mizuho 6,000 30 SMBC 8,000 40 F 0 *2 FY00 Source: Data 17Y03 Loc
Slide 41: Trust - Retain Pension Business Share
Trust Retain Corporate Major Business Product -Resource New 25% 30% 35% 40% 0% 5% 10% 15% (MTB+UTB) 20% Pension (JPY 5 Sales Actual O 3 4 2 JPY 12.6 P 1 F 0 Profitable Balanced Passive FY02 FY05 FY07 FY08 FY03 FY04 Specified Alternative FY06 Enhanced Data 180.2 rofitable assive Y05 Promote Expand En
Slide 42: Trust - Maintain Asset Management and Administration Presence
Trust Maintain Major Product Resource <Asset Business Expanding 100 Market F 60 80 * Inv. Investment Privately Publicly Increase and 40 (JPY 10 3 8 35 6 2 4 20 1 0 *Sum FY04 FY05 FY06 FY07 FY08 Admin. Data 1905Y07 Publicly balance Trusts Book Tn) Assets of Strategies Administration> Management> expe
Slide 43: Trust - Enhance Outstanding Presence
Trust Enhance Outstanding Integration Pension Secure Promote -Develop Specified For (As Investment (Asset Data UFJ MTFG 20 Asset Assets Efficient Reduce Promote Expand Pension ofBook Assets Administration) Sep.30, Japan’s management: under Trusts and efficiencies efficiency Duplicate securities Mone
Slide 44: Branches: Respond to Overlapping Network and Enhance Channels
Branches Respond Enhance Network Overlapping Now Over Overseas (301) 408 (incl. Convenience Approx. ATM Non-branch Central Domestic East Throughout Incl. West Retail Corporate Further Asia-Oceania Europe-Middle Americas UBOC Establish Develop * Data 21Domestic Overseas locations Japan Tokyo Book stu
Slide 45: Basic Policy on Systems Integration
Basic Implement Aim Bank Domestic BTM’s On Both Market-related Full-scale The agency Mitsubishi Complete Wholesale Data the new to Book systems of Policy date achieve businesses system Tokyo-Mitsubishi trust accounting/information systems business UFJ 22 systems ofof(incl. bank management will syste
Slide 46: Key Financials: Trust and Retail
(JPYTrust Key SMFG MTFG 12,335.6 13,875.9 19,305.3 10,959.9 8,345.4 (513.1) 210.0 1,313.5 713.2 600.3 30,465.3 31,631.8 60,156.6 26,754.3 33,402.3 Retail 1,237.9 171.9 (163.7) 421.6 1,409.8 Cumulative 944.1 537.5 571.3 1,481.6 investment Balance 482.9 614.9 254.0 360.9 Year 1,214.5 2,005.7 2,403.5 1
Slide 47: Key Financials: Corporate
Key (1,000 Corporate BTM+UFJ Revenue % Number 1.1 0.5% 0.6% 1.3 JPY 9.7 3.4% 7.8 3.5% 4.4% 9.0 Up 18.5 6.5% 14.2 6.4% 7.7% 15.8 Publicly 284.8 222.9 100.0% 203.8 Total 255.3 199.8 89.7% 87.2% 177.8 Source: 3.1 2.5 1.1% 1.5% 3.0 (JPY Mizuho SMFG MTFG+UFJ Loan Mid 53.8 41.5 69.7 *1 27.1 21.5 28.3 *2 B
Slide 48: Key Financials: Trust Pension
Key 1Financials (JPY UFJ MTBC Estimated Total Pension 12,600.8 4,782.2 7,818.7 Independently 10,964.6 3,844.2 7,120.4 Specified 5,963.6 1,873.3 4,090.3 Investment No. 22,109.4 12,582.1 9,527.3 Note: Source: Data trust Book Bn) Welfare Internal Trusts, trusts money Rank 25 trusts pension operated 3Se
Slide 49: Filings and Forward-Looking Statements
Filings Mitsubishi Holdings, the 4 www.sec.gov. calling, UFJ MTFG 26F In Hirotsugu_Hayashi@mtfg.co.jp 81-3-3240-9059 Fifth on Forward-Looking This statements expectations “anticipates,” reasonable, and information under SEC. (if addition public Form U.S. submit generally Marunouchi CONTACT: filed),