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)
48 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: Mitsubishi Tokyo Financial Group, Inc. Subject Company: UFJ Holdings, Inc. MTFG SEC File No. 1-10277
Slide 2: Investor Presentation: Creation of Mitsubishi UFJ Financial Group
-Investor CreationPresentation of Mitsubishi UFJ Financial Group-
Slide 3: Forward-looking statements
This group time may made Form In and The 1 addition, appropriateness financial prove that document by F-4, companies MTFG this for toinformation document be information additional contains and incorrect (collectively, of thethat was forward-looking on other information and used information companies
Slide 4: Table of Contents
TableFinancial Transaction Integration Objectives Key Business EPS Cost Revenue Opportunities 2 Summary Points Analysis Synergies of Contents Synergies Portfolio of Schedule of Summary the Today’s and Targets Integration Strategies Presentation across Business Lines (Retail/Corporate/Trust Assets)
Slide 5: Risks
Risks other unanticipated difficulties possible A Mortgage Wealth Annuities Pension Investment The Weak Declines Adverse Competitive MUFG Dramatic Unsuccessful Anticipated MUFG’s High Interest Foreign If Possible 3 SMFG/STB number success combined various default public relating economic management
Slide 6: Key Points of Transaction
Key Points of Transaction Shareholder Opportunities 4 Summary Value Today’s and Strategies Creation Presentation through across Business Management LinesIntegration
Slide 7: Transaction Summary
Transaction Summary Shareholder Opportunities 5 Value and Strategies Creation through across Business Management LinesIntegration
Slide 8: Transaction Summary
Transaction Company 2005/10/1 Effective MTFG Merger Tokyo/Osaka/Nagoya/New Management Listing Chairman: Deputy President: The Tokyo-Mitsubishi Mitsubishi 6 Bank :Ratio Chairman: UFJ Date Name of Nobuo (Sat) Ryosuke UFJ Summary = 1Trust Financial Securities :Kuroyanagi UFJ, 0.62 Haruya Tamakoshi and
Slide 9: Basic Integration Schedule
UFJ 8/04 2/05 6/05 10/05 5/05 11/04 9/04 Basic Integration FY04 Dispatch Listing in Creation Shareholders’ Approval Merger Investors New 17 7 Tokyo, integration Capital Group’s Agreement Integration Financial of Ratio of Proxy Meeting of Osaka, Mitsubishi Schedule Definitive Mitsubishi Enhancement t
Slide 10: Objectives of the Integration
Objectives Creation Large Bank/Trust Tokyo/Chubu/Kansai, Balanced Our Leading Retail Corporate Investment Strength the Enhance Total Strong Market Advantage 8 “Global Aspiration Assets: Corporations/SMEs/Retail Deposits Financial Value: across across Shareholder of Business Customer of Trust, Bank/S
Slide 11: Shareholder Value Creation through Management Integration
Transaction Summary Shareholder Opportunities 9 Value and Strategies Creation through across Business Management LinesIntegration
Slide 12: Key Financial Targets
Key (JPY Change FY04 +50~60% Expense -10 40~45% 50%~55% Consolidated -410 -A Approx. *1 *2 <Assumed 3M FY06 FY07 FY05 FY08 10Yrs 0.29% 0.41% 0.13% 0.46% JPY 2.22% 1.81% 2.29% Real 105 *3 1.8% 1.0% 1.9% 1.1% 11pprox. Combined Consolidated BTM pts Ave. for Financial GDP Bn) Target Forecast*1 Ave. 1-9%
Slide 13: Create a More Balanced Business Portfolio
Business Further Create Target FY08 (incl. 2~4% FY04 Others 15%+ Trust 35%+ 20~25% 1~2% Core Retail 55~60% Corporate Approx. *1 11 Combined Net Assets Treasury/UNBC) Target Forecast Forecast*1 Net More (incl. Strengthen \2,500Bn 10% \1,600Bn 50% 75% Portfolio Operating Operating Treasury/UNBC) Stabl
Slide 14: EPS Accretion Analysis
Aim Increase over [Reference] FY08 Target FY07 3% EPS New Stand-alone MTFG Approx. FY06 *1 *2 *3 *4 2004 12 When Fully-diluted EPS Compound 10% Analysis Accretion CAGR MTFG’s to Group’s Group Group*1*2 Target FY07 Stand-alone*3 Further estimate 19% 10% of 21% calculating New Target (FY06-FY08)*4 FY0
Slide 15: Cost Synergies
Through Cost FY07) Annual Subsidiaries: Others Staff Total Relocate Complete Expected Retail: Corporate: Overseas: *1 One-Time Approx. (Annual Major System Branch Tax, *2 In expected 13 the addition For Estimated CI, Synergies reduction: Reduction/Relocation Reduction first Cost Breakdown*1 Breakdow
Slide 16: Revenue Synergies
Decrease Revenue Annual JPY Approx. *2 of *1 Major Wealth Retail Overseas Corporate Trust Enhanced (Securities 14 increase Level Net 40Bn Asset Sources increase Management Increase Synergies synergies of in Services, Product Administration in decrease revenue gross ofininRevenue gross Development wi
Slide 17: Opportunities and Strategies across Business Lines
Transaction Shareholder Opportunities across 15 Business Summary Value and Lines Strategies Creation through Management Integration
Slide 18: Retail: Earning Target
Retail Aim Target Earning Securities MTFG Testamentary Real New Including Sales Product Investment FY04 Loan Finance Consumer Approx. Rising FY03 *1 16 Breakdown Simple to Estate Group Forecast FY04 ~Net Interest Actual/Target atDrivers*1 Profit JPY120-130Bn JPY least Synergies: Business combined Op
Slide 19: Retail: Integration Aim
Aim Integration Retail Opportunity Mutually Increase Strategically Credit Jointly Residential Share Cost Streamlining More Systems (Note) 32 31 SMBC Tn 60 Approx. Mizuho MTFG+UFJ 17 New by Segments Number Customer Approx.2MM JPY Approx.10MM ~ Approx.JPY Approx.30MM *1JPY Customer Based 10MM 0.5MM to
Slide 20: Retail: Expand Investment Product Sales
Retail Expand Aim Major Individual Business Actively Resource Increase Thorough Cash, Japan Insurance, Debt US Inv. 34.9Tn 18 USD 1,412Tn Source: “Flow % Investment (80% Provide Enhance (JPY Revenue 6,000 JPY Foreign 4,000 5,000 Number 3,000 Pension Allocate 2,000 Equity F 0 1,000 FY04 Target FY08 Y
Slide 21: Corporate: Earning Target
Corporate Aim Target Earning Real MTFG Including JPY New SME Overseas FY04 Approx. Rising Securities Investment *2 Settlement *3 FY03 *1 19 Breakdown Domestic Combined 30~40Bn for Estate Group Lending Forecast FY04 Net Interest Actual/Target Drivers*2 35-40% 920Bn Synergies ~Operating Banking*3 Targ
Slide 22: Corporate: Develop and Expand SME Business
Corporate Develop Expand SME New Increase Expanding Establish Strategic Product Strengthen Promote Strengthening Actively Existing Significant (16%) Potential 1,800,000 Approx. Total Source: Avg. Packaged (JPY 1,400 1,600 200 400 600 800 1,000 1,200 FY03 1H 1 0 20 90 100 110 120 130 140 502HBusiness
Slide 23: Trust Assets: Earning Target
Aim Target Earning MTFG Trust New Including Custody JPY FY04 Pension Corporate Approx. Investment (Asset *2 FY03 *1 21 Breakdown Simple 5~10Bn to Group Assets Business Forecast FY04 Administration) Net Management) Actual/Target Triple Drivers*2 24Bn Synergies combined Operating Trust Target Forecast
Slide 24: Trust Assets: Pension and Asset Administration
TrustPension Enhance Outstanding Integration Pension Aim Asset Efficient Reduce Develop Promote Expand Specified For (Both Investment (Asset (All MTFG UFJ 22 as to Assets Administration: Management as Administration) of Secure Duplicate Securities Trusts of and Efficiencies Profitable Efficiency Sta
Slide 25: Strategic Summary
Strategic Summary Steady 23 Implementation Enhancement ManagementofIntegration of Shareholder Integration in Value an Strategy expanding and in Enterprise the business EarlyValue Stage phase
Slide 26: Appendix
Five Financials Appendix Highly Strong Progress Market ROE Opportunities Branches Basic Management Key 24 Competitive Target Policy Capital Complementary Value in and UFJ’s Comparison of Structure Based Direct and Base System Advantages NPL Strategies Ranking Channels of Disposition Integration Busi
Slide 27: Five Aims of the New Group
Five Aim 1. 2. 3. 4. 5. 25 Japan’s Highly Strong to Competitive Join Business Financial/Capital Corporate Complementary Preeminent the “Global Advantages Foundation Governance Global Top Business Foundation 5” Banking Based by and Leveraging and Transparent on Network Networks RetailFive Deposits Ma
Slide 28: Highly Complementary Lending Portfolios
Highly Lending MTFG UFJ New Overseas corporations Large Individuals SMEs Note: (including 26 Group MTFG 27% 37% 32% Complementary Portfolios 10% 5% 8% two 19% 28% 23% (Simple 44% 30% 37% figures separate (As Combined) areof subsidiaries) Business the end sum of 9/2004) of the andnon-consolidated UFJ
Slide 29: Highly Complementary Domestic and Overseas Networks
Highly Domestic Overseas 366 400 546 600 C 80 Eastern 148 20 26 40 60 300 263 1 22 212 UFJ Western Note: 150 186 200 U 0 50 81 100 27 MTFG 00 entral FJ For Complementary Japan Japan Total Total and MTFG, Overseas sum ofNetwork Networks BTM and BTM, Mitsubishi (9/2004) Mitsubishi Trust Trust; and Mit
Slide 30: Strong Ability to Build Capital
Strong Ability Capital (Combined)*1 UFJ MTFG MUFG 2.20 5.52 (B)-(A) Gov’t 0.00 (ex Retained 1.65 1.44 0.21 1.40 (B) Deduction 0.76 2.81 2.15 4.97 Tier2 5% 4.88 (JPY 0.89 0.07 0.26 Net 54.45 43.20 97.66 RWA BIS FY2008 10.92 9.92 10.48 1.1 (Reference) 5.10 5.66 (%) 7.39 1.85 4.21 (A) 4.02 0.80 4.12 Ti
Slide 31: Progress in NPL Disposition
Progress Drastically Large (JPY Support Daiei, 8 3%-4% 5 6 6.0% 7.0% Expected Debt-Equity Asset 4 Sojitsu 2 3.0% Collection 1.0% 0 APLUS NPL 05/3(target) 03/3 03/9 04/3 04/9 *1 NPLs 29.0% Simple Ratio Tn) Restructuring under Troubled Misawa, Range by incombined and Reduce IRCJ the FRL Swap Sale Disp
Slide 32: Ranked Among Global Financial Institutions
Ranked Aim (As (JPY Financial Rank Market C 1 6.9 MTFG 15 ING 16 26.0 H 2 6.8 BNP 17 19.9 3 6.6 A 4 J19.7 5 17.8 Mizuho 21 14.4 B 6 6.2 R 7 11.6 W 8 4.7 SMFG 31 11.0 M 9 10.9 UBS 10 3.2 UFJ 47 10.1 Source: 9.8 30 .P.MORGAN itigroup ank ERKSHIRE OYAL SBC IG TFG ELLS of Group to AG Paribas Tn) of12/31
Slide 33: ROE Target and Comparison
Aim Mizuho MTFG SMFG JP MUFG Citi 20.0% *1 BoA ROE Source: 5.00% 0.0% MTFG+UFJ 10.0% of (As 10.00% Note Tier 31 each of 1to 1:Excluding 2:Circles Target Ratio 3/04 Achieve company Company FG for Comparison indicate Japanese Approx.17% Trust Disclosure the Preferred banks; NetROE based Income asSecur
Slide 34: Retail-1: Aim
Retail-1~ Aim New Maximize Seek Make Develop Maximum Branch After-hours/Weekend Convenient Provide focused “Career Participative Social Contribute Launch Establish Compliance Thoroughly 32 to Group’s High Consumer Responsibility Maximize Layout, Educational Training Development” on Regionally Servic
Slide 35: Retail-2: Explore Business Opportunities
Retail-2 Explore Business Reorganize Utilize Product Feature Strengthen Resource Increase Major Sample: A B Others 1% 5% Credit 63% 7% Loans Consumer 0.3Tn 42% 1.1Tn JPY 37% 25% Banking Retail Loan 20% Integration Target Customers Interest IC Unified (9 Acom E 8 2 100 Products New 15 or Mobit Cash-O
Slide 36: Retail-3: Strong Housing Loan Business
Retail-3 Strong Aim Major Business Utilize Focus Regional Product Resource Housing 200 Other Corporation F 0 50 Financial Private 100 150 Institutions Residential FY98 FY99 FY00 FY01 FY03 (JPY (JPY100mm) (Ten Projected (Annual 40,000 25 Up 21 4,500 35,000 (Left-axis) Origination 5,000 23 5,500 (Righ
Slide 37: Corporate-1: Domestic Business
Corporate-1 In Domestic Major Business Provide Promote Strengthen Enhance Resource Reallocate F 10 20 30 40 50 60 Real Revenue (JPY 3,000 Others 3,500 5.0 4,000 Approx. for Derivatives 1,000 1,500 Securitization 2,000 4.5 Loans Syndicated 2,500 Finance Structured 4 0 500 *1 FY04 FY05 FY06 FY07 FY08
Slide 38: Corporate-2: Establish Settlement Business
Corporate-2 Establish Major FX Resource Domestic (USD 30 UFJ 40 50 Leverage Simple MTFG 10 Business FX/Cross-Border B 0 Bank New (FY03) (FY08 Transfer (%) (Number (MM) On-line :Thousand) % 250 21 Number 400 (Right-axis) Aim (Left-axis) 36 FY05 FY06 FY07 20 17 FY03 Forecast FY04 Target FY08 100 18 15
Slide 39: Corporate-3: Establish Leading Overseas Business
Corporate-3 Establish Leading Major Business Support Firmly Product Strengthen Resource Upgrading Allocate Target Revenue Seek *1 Approx.Double Overseas Japanese New India/Vietnam 50 (#) Europe/Africa/Middle 2,000 China 4,000 10 NIES 6,000 20 Mizuho 8,000 30 ASEAN 10,000 SMBC 40 12,000 Asia A 0 FY04
Slide 40: Trust Assets-1: Retain Corporate Pension
Trust Retain Corporate Major Business Promote Product Expand Resource Enhance New 30% 35% 40% 0% 5% 10% 15% 20% 25% Pension (JPY FY08(Target) S 5 JActual 4 JPY O 3 2 P 0 1 Profitable Balanced Specified Alternatives FY08 FY02 FY07 FY04 FY05 FY06 FY03 Enhanced 38 PY ales assive verall 12.6 20.2 Trust
Slide 41: Trust Assets-2: Expanding Asset Management and Administration
Trust Aim (#3 Expanding Major Establish Product Develop Resource Strengthen <Asset Business To Market F 50 100 *Publicly (Net Investment (JPY Increase 40 and % Privately Publicly 2 5 25 10% 30 15% 35 10 1 0 0% 15 5% FY08 FY07 FY06 FY05 FY04 Administration *Sum 390Y08 Share Establish in Balance Asset
Slide 42: Branches and Direct Channels Network
Branches Network Enhance (301 UBOC In Over Overseas 408 (Including Currently Establish Develop Throughout Asia: Europe: Americas: UBOC: Š 40 Respond Convenience Domestic Approx. ATM Central locations West general, and Corporate:123 East Non-branch Including Retail: Corporate: Further locations Japan
Slide 43: Basic Policy on Systems Integration
Aiming Basic Domestic (sort Market-related Adopting On Most Certain Full-scale Planning real transfer Mitsubishi To (Systems systems 41 Complete the estate customer systems Policy policy Integration systems agency to featuring for to for BTM’s operations/information Systems System operations, realiz
Slide 44: Management Structure and Internal Control
Management Introduce (Will Implement based Full institution as Integrated New Internal Risk Financial Accounting General Credit Close Retail Market Assess Operational BSC Information Corporate Trust Compliance Implementation (Establish 42 a NYSE-listed compliance management Approach trust securities
Slide 45: Key Financials
Key Trust SMBC (\bn) 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 Balance 482.9 614.9 254.0 360.9 Year 1,214.5 2,005.7 2,403.5 1,016.3 1,387.
Slide 46: Key Financials: Corporate
Key Corporate BTM+UFJ Revenue % \100 Number \10 1.1 0.5% 0.6% 1.3 \3 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 Note: 3.1 2.5 1.1% 1.5% 3.0 Comparison (Unit: Mizuho SMFG MTFG+UFJ Loan Mid 53.8 41.5 69.7 *1 27.1 21
Slide 47: Key Financials: Trust Assets
Key (Asset (\ 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: 45 bn)1Financials trust Welfare balances Internal Trusts, trusts money Rank trusts pension operated
Slide 48: Additional information and contact
Foraddition Filings Mitsubishi Holdings, the F-4 www.sec.gov. calling, MTFG Mr. 26F Tokyo 81-3-3240-9059 Hirotsugu_Hayashi@mtfg.co.jp In Fifth on Forward-Looking This statements expectations “anticipates,” reasonable, and information under SEC. 46 public Form U.S. U.S. (if Hirotsugu submit generally