Mitsubishi UFJ Financial Group Inc (MUFG) 2023 Q2 法說會逐字稿

I am Kamezawa. Thank you very much for taking time out of your busy schedule today to attend our MUFG IR presentation.

我是龜澤。非常感謝您今天在百忙之中抽出時間參加我們的 MUFG IR 演示會。

Please turn to Page 6 of the presentation material. I will start with an overview of the financial results for the first half of FY '22. Please look at the column that says FY 2022 H1 results in the middle of the slide. From the top, Line 1, gross profits increased by JPY 342.5 billion year-on-year to JPY 2,323.4 trillion, mainly due to the increase in net interest income from loans and deposits, thanks to the effects of higher overseas interest rates and risk return improvement measures as well as increase in foreign exchange and trading revenues, capturing market fluctuations.

請翻至示範資料的第 6 頁。我將先概述 22 財年上半年的財務表現。請查看投影片中間顯示 2022 財年上半年結果的欄位。由上至下第1行，毛利潤年增3425億日元至2323.4兆日圓，主要是受海外利率上升和風險回報影響，貸款和存款淨利息收入增加改善措施以及增加外匯和交易收入，捕捉市場波動。

Line 2, G&A expenses increased by JPY 84.8 billion year-on-year, but excluding the impact of yen depreciation, which was about JPY 111.5 billion, it decreased by about JPY 27 billion. As a result, Line 3, net operating profit was JPY 895.2 billion, up by JPY 257.7 billion year-on-year, marking a record high level for the first half. Below net operating profits, Line 4, credit costs included JPY 231.9 billion in valuation losses of loans due to accounting treatment specific to U.S. GAAP following the decision to sell Union Bank or MUB. This resulted in a JPY 261.7 billion increase year-on-year. But excluding such valuation losses, expenses on a real basis were approximately JPY 12 billion, remaining at a low level.

第2行，G&A費用年增848億日元，但剔除日圓貶值的影響約1,115億日元，減少約270億日元。其中，3號線營業淨利為8,952億日元，年增2,577億日元，創上半年歷史新高。在第 4 行淨利潤之下，信貸成本包括 2,319 億日圓的貸款估值損失，這是由於決定出售聯合銀行或 MUB 後根據美國公認會計原則進行的會計處理造成的。年增2617億日圓。但排除此類估值損失，實際費用約為120億日元，仍處於較低水準。

In addition, due to the same accounting treatment, Line 6, profits attributable to owners of parent was JPY 231 billion, down by JPY 550.3 billion year-on-year, mainly due to the recording of JPY 331.8 billion in valuation losses on securities held by MUB. However, most of the onetime losses from the accounting treatment I just explained will be recorded as extraordinary gains upon MUB's transfer. Therefore, on a real basis, after taking this into account, as shown on Line 7, profits attributable to owners of parent was JPY 679.2 billion, a strong progress ratio of 68% toward the full year target of JPY 1 trillion.

此外，由於同樣的會計處理，第6行，歸屬於母公司所有者的利潤為2,310億日元，同比減少5,503億日元，主要是由於記錄了持有證券的估值損失3,318億日元由MUB。然而，我剛才解釋的會計處理造成的大部分一次性損失將在 MUB 轉移時記錄為非正常收益。因此，在實際基礎上，考慮到這一點，如第7行所示，歸屬於母公司所有者的利潤為6,792億日元，向全年1萬億日元的目標推進了68%的強勁進度。

Next, regarding the performance target for FY '22, we maintained the target of JPY 1 trillion for profits attributable to owners of parent announced at the beginning of the fiscal year. As for the breakdown, we revised our net operating profits target upward by JPY 200 billion in light of the strong progress in the first half. In addition, credit costs and ordinary profits were revised respectively, due to the accounting treatment for the sale of MUB, which causes some shifts between accounts.

接下來，關於22財年的業績目標，我們維持年初宣布的歸屬於母公司股東的利潤1兆日圓的目標。就細分而言，鑑於上半年的強勁進展，我們將淨利潤目標上調了 2,000 億日圓。此外，由於銷售MUB的會計處理導致帳戶之間出現一些轉移，因此信貸成本和普通利潤分別進行了修訂。

Please turn to Page 7, which shows the factors for year-on-year changes in the first half results of FY '22. As explained earlier, profits attributable to owners of parent decreased due to the impact of the accounting treatment in connection with our decision to sell MUB. On the other hand, the increase in net operating profits offset the impact of the absence of M&A-related extraordinary gains that were recorded in the first half of FY '21 and the lower gains on equity securities due to the impairment of shares in FY '22.

請參閱第7頁，其中顯示了22財年上半年業績年增率變動的因素。如前所述，由於我們決定出售 MUB 的會計處理方法的影響，歸屬於母公司所有者的利潤有所下降。另一方面，淨利潤的增長抵消了 21 財年上半年記錄的併購相關非經常性收益缺失以及由於 20 財年股票減值導致的股本證券收益較低的影響。

Please turn to Page 8. Let me provide an overview of the sale of MUB. In October this year, we obtained all required regulatory approvals for the sale of MUB shares and related transactions. The closing is expected on December 1. We will announce again after the transaction is completed, but we expect the total gain on sale to be approximately JPY 120 billion, including the portion already recorded in FY '21 and to be recorded in FY '23 and onward. We expect the impact on CET1 ratio to be around plus 45 basis points.

請翻到第8頁。今年 10 月，我們獲得了出售 MUB 股票及相關交易所需的所有監管批准。預計將於 12 月 1 日交割。我們預計對 CET1 比率的影響約為+45 個基點。

Please turn to Page 10, which shows net operating profits by business group. As shown in the step chart on the right, in customer segments, profits in AM/IS decreased slightly due to the absence of large performance fees we had in FY '21, but other business groups enjoyed a profit increase, including higher net interest income from loans and deposits and foreign exchange-related income, resulting in a significant increase of JPY 218.4 billion in total customer segments.

請翻至第 10 頁，其中顯示了按業務組劃分的淨利潤。如右側的步驟圖所示，在客戶細分市場中，由於我們在21 財年沒有支付巨額績效費用，AM/IS 的利潤略有下降，但其他業務集團的利潤有所增加，包括更高的淨利息收入貸款、存款和外匯相關收入大幅增加，客戶群總量大幅增加2,184億日圓。

Global Markets Business Group also posted an increase of JPY 64.1 billion in net operating profits as a result of portfolio rebalance with minimal financial impact by offsetting loss on sale of foreign bonds with gain on cancellation of bear fund as well as securing earnings opportunities through flexible trading that successfully captured market fluctuations.

全球市場業務集團也公佈，由於投資組合重新平衡，透過取消熊市基金的收益抵消出售外國債券的損失，並透過靈活的交易確保盈利機會，對財務影響最小，淨利潤增加了 641 億日元成功捕捉市場波動。

Page 11 shows net income results by business group. Profit declined in DS, digital service, due to stock impairment losses; GCB, due to the absence of reversal of credit costs in MUA as we had in FY '21; and AM/IS, due to the absence of performance fee that we had in FY '21. On the other hand, R&C, JCIB, GCIB, the entire customer segment as well as Global Markets reported higher profits.

第 11 頁顯示了按業務組劃分的淨利潤結果。由於股票減損損失，數位服務 DS 的利潤下降； GCB，由於 MUA 的信貸成本沒有像 21 財年那樣逆轉； AM/IS，因為我們沒有 21 財年的績效費。另一方面，R&C、JCIB、GCIB、整個客戶群以及全球市場都報告了較高的利潤。

Please turn to Page 18, which shows the status of our balance sheet. Loans shown in the upper right red bar graph increased by JPY 9.3 trillion from the end of FY '21. Of this amount, JPY 6.6 trillion is due to yen depreciation. So on the actual basis, excluding foreign exchange impact, loans increased by about JPY 3 trillion due to an increase in overseas loans. The yellow bar graph on the lower right shows that deposits increased by JPY 6.6 trillion, of which JPY 6.2 trillion is again due to foreign currency effects. So excluding this impact, the actual increase is about JPY 400 billion.

請翻到第 18 頁，其中顯示了我們的資產負債表狀況。右上角紅色長條圖中顯示的貸款較 21 財年末增加了 9.3 兆日圓。其中，6.6兆日圓是由於日圓貶值造成的。因此，以實際計算，剔除匯率影響，因海外貸款增加，貸款增加約3兆日圓。右下黃色長條圖顯示，存款增加了6.6兆日元，其中6.2兆日圓又是由於外匯影響而增加的。因此剔除此影響，實際增加額約4000億日圓。

Page 19 is on domestic loans. The upper right yellow line graph, deposit lending spread, is improving steadily, thanks to the expansion of the lending spread for large corporations.

第 19 頁是國內貸款。右上黃線圖，存款貸款利差正穩定改善，這要歸功於大企業貸款利差的擴大。

Page 20 is overseas loans. The upper right yellow line graph, deposit lending spread is steadily increasing on a nonconsolidated basis, which is Bank and Trust Bank, thanks to higher overseas interest rates and improved lending spread.

第20頁是海外貸款。右上黃線圖，非並表基礎上的存款貸款利差正在穩步增加，即銀行和信託銀行，得益於海外利率上升和貸款利差改善。

Page 21 is our non-Japanese yen liquidity. As shown in the left figure, foreign currency loans are stably covered by deposits and mid to long-term market funding. In addition, in view of the foreign currency deposits and loan balance, the transfer of transactions from MUB and uncertainties in the market environment, we have restored some of our mid to long-term market funding through appropriately controlled liquidity risk.

第 21 頁是我們的非日元流動性。如左圖所示，外幣貸款穩定地由存款和中長期市場資金所保障。此外，針對外幣存貸款餘額、MUB交易轉移以及市場環境的不確定性，我們透過適當控制流動性風險，恢復了部分中長期市場資金。

Page 22 is on investment securities. Unrealized gains decreased from the end of FY '21, partly due to higher interest rates overseas. While unrealized losses on foreign bonds increased to approximately JPY 1.8 trillion, the actual unrealized losses, taking into account unrealized gains from hedging positions and other factors, is approximately JPY 1 trillion, as shown in the lower right.

第22頁是關於投資證券的。未實現收益較 21 財年末下降，部分原因是海外利率上升。雖然外國債券的未實現損失增加至約1.8兆日元，但考慮到對沖頭寸的未實現收益和其他因素，實際未實現損失約為1萬億日元，如右下所示。

Please turn to Page 24. Let me explain our responses to rises in non-Japanese interest rates. We maintain the overall unrealized gains on available-for-sale securities, including equities and have also worked to curb the deterioration in unrealized losses on foreign bonds due to the rise in foreign interest rates. In addition to reducing the interest rate risk to the historical low level, we have been selling bonds with unrealized losses by utilizing hedging tools such as bear funds. After sales, we also recycle and reinvest in higher yield bonds in the held-to-maturity account.

請翻到第 24 頁。我們維持了包括股票在內的可供出售證券的整體未實現收益，並努力遏制因外國利率上升而導致的外國債券未實現損失的惡化。除了將利率風險降至歷史低點外，我們還利用熊市基金等對沖工具出售未實現損失的債券。出售後，我們也回收並再投資於持有至到期帳戶中的較高收益債券。

As shown in the lower left, we think we successfully controlled the deterioration of unrealized losses to a certain extent, amid the significant rise in interest rates. In the second half, we plan to control unrealized losses by continuing our prudent operations under strict control of the amount of interest rate risk.

正如左下圖所示，我們認為在利率大幅上升的情況下，我們在一定程度上成功地控制了未實現損失的惡化。下半年，我們計劃繼續審慎經營，嚴格控制利率風險額度，控制未實現損失。

Please turn to Page 25. As explained earlier, credit costs, excluding the impact of the accounting treatment in connection with the decision to sell MUB, were JPY 11.8 billion in real terms, remaining at a low level. In addition, the balance of nonperforming loans in the right bar graph has remained almost unchanged from the end of FY '21, and the risk monitored loan ratio shown by the line graph also remains at a low level.

請參閱第25頁。此外，右側長條圖中的不良貸款餘額與21財年末相比幾乎沒有變化，折線圖所示的風險監控貸款比率也維持在較低水準。

Page 26 shows our capital status. The CET1 ratio on the finalized Basel III reforms basis, excluding unrealized gains as of the end of September on the bottom left, was 9.9%, which is close to the upper 10% target range in the medium-term business plan or MTBP and remains at a satisfactory level from the soundness perspective.

第26頁顯示了我們的資本狀況。在最終確定的巴塞爾協議III 改革基礎上（不包括左下角截至9 月底的未實現收益），CET1 比率為9.9%，接近中期業務計劃或MTBP 中10% 目標範圍的上限，並且仍保持不變。

From Page 28, I will explain the progress of the MTBP starting with the progress of financial targets. ROE, which is positioned our largest commitment was 2.91% for the first half of FY '22. But after taking into account the amount to be reversed when the sale of MUB is completed, ROE is actually around 8.4%, which is, we believe, is a reasonable level.

從第28頁開始，我將從財務目標的進展開始解釋MTBP的進展。我們最大的承諾是 22 財年上半年的 ROE 為 2.91%。但考慮到 MUB 出售完成後要轉回的金額，ROE 實際上約為 8.4%，我們認為這是一個合理的水平。

The bottom half shows the progress of profits, expenses and RWA, risk-weighted assets, which we positioned as the 3 drivers for achieving the ROE target. In profits on the lower left, net operating profits increased substantially, thanks to strong customer segments earnings. Profits attributable to owners of parent is trending steadily on the actual basis. Expenses and risk-weighted assets, which will be explained later, are well under control in line with our policy.

下半部顯示了利潤、費用和 RWA、風險加權資產的進展情況，我們將其定位為實現 ROE 目標的 3 個驅動因素。在左下角的利潤中，淨利潤大幅成長，得益於強勁的客戶群獲利。實際歸屬於母公司所有者的利潤趨勢穩定。費用和風險加權資產（稍後將對此進行解釋）根據我們的政策得到了很好的控制。

Page 29 shows the status of our earning power. The various measures set forth in the MTBP are making steady progress. And as shown in the left graph, customer segment net operating profits increased substantially by JPY 218.4 billion. Excluding foreign exchange effects, net operating profits increased by approximately JPY 110 billion. We believe that our earning power is steadily improving, thanks to improved spread, strong foreign exchange transactions and reductions in base costs. I will explain the progress of the main strategies of the MTBP from the next page.

第29頁顯示了我們的獲利能力狀況。中期戰略計劃提出的各項措施正在穩步推進。如左圖所示，客戶部門淨利大幅增加2,184億日圓。剔除匯率影響，淨利增加約1100億日圓。我們相信，由於利差改善、外匯交易強勁和基本成本降低，我們的獲利能力正在穩步提高。我將從下一頁開始解釋MTBP主要策略的進展。

Please turn to Page 30, which shows the first pillar of our corporate transformation, which is digital transformation. On this page, I will talk about our efforts to improve convenience, both in branch and online. As shown in the graph at the top, we plan to consolidate more than 50 branches in FY '22. At the same time, we are promoting the digitalization of over-the-counter transactions so that our customers can transact with us comfortably.

請翻到第30頁，其中展示了我們企業轉型的第一個支柱，即數位轉型。在此頁面上，我將討論我們為提高分行和線上便利性所做的努力。如上圖所示，我們計劃在 22 財年整合 50 多個分公司。同時，我們正在推動場外交易的數位化，以便我們的客戶可以放心地與我們進行交易。

Since July of this year, we have been gradually introducing account opening using the over-the-counter tablets, and we'll continue to expand the number of transactions that can be self processed. In addition, starting this October, we are gradually introducing a new reception system that allows customers to check the waiting time at the counter on their own smartphone. Please look at the lower part of the page. Through continuous functional improvements of the app, online transactions are steadily increasing. In addition, we are also improving our system to meet investment consultation needs. Starting this November, for some of our products, customers will be able to complete the entire process from asset management consultation to execution online without visiting our branches.

自今年7月起，我們已逐步推出透過櫃檯平板電腦開戶的方式，並將繼續擴大可自助處理的交易數量。此外，從今年10月開始，我們將逐步引入新的接待系統，顧客可以透過自己的智慧型手機查看櫃檯的等待時間。請查看頁面的下半部。透過應用程式的不斷功能改進，線上交易量穩定成長。此外，我們也正在完善系統，滿足投資諮詢需求。從今年11月開始，我們的部分產品，客戶無需親臨網點，即可在線上完成從資產管理諮詢到執行的全流程。

Page 31 shows the progress of our efforts to become a financial and digital platform operator. First is Busikul, a service for our corporate clients in the upper left. Busikul is a platform to help solve nonfinancial sector issues, such as DX and decarbonization and was rolled out across all branches in April this year. Currently, we are providing more than 100 nonfinancial solutions per month through this platform and are also strengthening collaboration with regional banks to expand beyond MUFG customers.

第31頁展示了我們努力成為金融和數位平台營運商的進展。首先是 Busikul，這是為左上角的企業客戶提供的服務。 Busikul 是一個幫助解決 DX 和脫碳等非金融部門問題的平台，今年 4 月在所有分行推出。目前，我們每月透過該平台提供超過 100 個非金融解決方案，並且還在加強與區域銀行的合作，以擴展到三菱日聯銀行客戶以外的領域。

Progmat, bottom left, is a platform to issue and manage tokens using blockchain technology. Starting with the first deal in July last year, we have steadily built up our track record and expect the balance of assets managed to exceed JPY 40 billion by the end of this fiscal year. We also plan to issue Progmat coin, a stable coin in FY '23. Top right is Money Canvas, our asset management platform. Since its release in December last year, it has been accessed by 1.45 million people and also offers a full lineup of insurance and other products. D-Canvas, on the lower right, is an app for defined contribution pension plan subscribers. We are continuously improving the UI/UX with the keywords, easy and convenient and employees of over 2,300 companies with defined contribution pension plan are currently using the app.

Progmat（左下角）是一個使用區塊鏈技術發行和管理代幣的平台。從去年 7 月的第一筆交易開始，我們穩步建立了業績記錄，預計到本財年末資產餘額將超過 400 億日圓。我們也計劃在 23 財年發行 Progmat 幣，這是一種穩定幣。右上角是我們的資產管理平台 Money Canvas。自去年12月發布以來，已有145萬人使用，並提供全系列的保險和其他產品。右下角的 D-Canvas 是一款針對固定繳款退休金計畫訂戶的應用程式。我們不斷以「簡單、方便」為關鍵字改進 UI/UX，目前有 2,300 多家擁有固定繳款退休金計畫的公司的員工正在使用該應用程式。

Page 32 shows our open innovation initiatives. First is Mars Growth Capital, AI-based startup financing shown on the upper left. In January, we established the second fund for business expansion, which has been performing well. So we are considering further business expansion and new business development.

第 32 頁展示了我們的開放式創新措施。首先是火星成長資本（Mars Growth Capital），這是基於人工智慧的新創企業融資，如左上方所示。 1月份，我們設立了第二期業務拓展基金，目前表現良好。所以我們正在考慮進一步的業務擴張和新業務的開發。

Lower left is the MUFG Ganesha Fund, an investment facility for Indian startups. The first investment was made in September of this year, and the pipeline is steadily expanding with plans for second investment by the end of the year. NFT Web 3-related business is on the upper right. In August, we invested in Animoca Brands, a partner in the Web 3-related business. We aim to create a safe and secure trading environment and business opportunities through further collaboration with Animoca Brands.

左下角是三菱日聯金融集團甘尼薩基金 (MUFG Ganesha Fund)，這是一家針對印度新創企業的投資機構。第一筆投資已於今年9月完成，管道正在穩步擴大，計劃在年底前進行第二筆投資。 NFT Web 3相關業務在右上角。 8 月份，我們投資了 Web 3 相關業務的合作夥伴 Animoca Brands。我們的目標是透過與 Animoca Brands 的進一步合作，創造一個安全可靠的貿易環境和商業機會。

Lower right is our collaboration with Grab. In Thailand, Bank of Ayudhya is steadily accumulating small loans to drivers and food merchants and began offering loans to general users from June this year. In Indonesia, the number of co-branded credit cards issued with Bank Danamon is increasing steadily.

右下是我們與 Grab 的合作。在泰國，大城銀行正在穩步累積向司機和食品商提供的小額貸款，並從今年六月開始向普通用戶提供貸款。在印度尼西亞，與Bank Danamon發行的聯名信用卡數量正在穩步增長。

Please turn to Page 33. One of our corporate transformation is transformation of corporate culture. In order to take action built on our purpose committed to empowering a brighter future, we have been working to nurture the sense of ownership in each employee. To strengthen this momentum, we launched MUFG Way Boost Project. By communicating good examples of employees embodying our purpose, both internally and externally, we will encourage more employees to put MUFG Way into practice.

請翻第33頁。為了採取行動，致力於創造更美好的未來，我們一直致力於培養每位員工的主人翁意識。為了加強這一勢頭，我們啟動了 MUFG Way Boost 計畫。透過在內部和外部傳播體現我們宗旨的員工的好榜樣，我們將鼓勵更多員工將三菱日聯之道付諸實踐。

On Page 34, let me introduce our efforts to put MUFG Way into practice. In the Spark X new business incubation program on the left, 650 ideas were submitted, and the final screening session was held on November 7. The ideas selected for this program will be put into full-scale activities for commercialization in the future. In the MUFG headquarters project on the right, a working group across the entire group, bank, trust bank and securities, played a central role in determining the project concept and other details. I feel that this review process itself is serving as an opportunity to promote corporate culture reform and embody the MUFG way. The plans for the MUFG headquarters and temporary relocation are still under consideration but will be finalized and announced by the end of this fiscal year.

在第34頁，我將介紹我們為實踐MUFG Way所做的努力。左邊的Spark X新業務孵化計劃中，共提交了650個創意，並於11月7日舉行了最終篩選。在右側的三菱日聯總部專案中，橫跨整個集團、銀行、信託銀行和證券的工作小組在確定專案概念和其他細節方面發揮了核心作用。我覺得這次審查過程本身就是一個推動企業文化改革、體現MUFG方式的機會。三菱日聯總部和臨時搬遷計畫仍在考慮中，但將在本財年年底前敲定並公佈。

Page 35 shows the progress of our strategy for growth and structural reforms. As shown in the left graph, we are targeting an increase in net operating profits of JPY 150 billion in strategy for growth and JPY 100 billion in structural reforms over the 3-year MTBP period, and we have already achieved steady progress, achieving JPY 215 billion in strategy for growth and JPY 65 billion in structural reforms.

第 35 頁顯示了我們成長和結構改革策略的進展。如左圖所示，我們的目標是在3年MTBP期間將成長策略的淨利潤增加1,500億日元，將結構改革的淨利潤增加1,000億日元，並且我們已經取得了穩步進展，實現了215日圓10億日圓用於成長策略，650億日圓用於結構改革。

Right side is a summary of the progress of our strategy for growth and structural reforms. First is Wealth Management. Wealth Management revenues were strong, particularly in cross transactions, thanks to the increased use of proposals based on recommendations delivered to the staff from the Wealth Management digital platform. In addition, Mitsubishi UFJ Morgan Stanley Securities won first place in the Full-Service Securities category in J.D. Power's 2022 Japan Investor Satisfaction Study.

右邊是我們成長和結構改革策略進展的總結。首先是財富管理。財富管理收入強勁，尤其是在交叉交易中，這要歸功於基於財富管理數位平台向員工提供的建議的提案的使用增加。此外，三菱日聯摩根士丹利證券在 J.D. Power 2022 年日本投資者滿意度研究中榮獲全方位服務證券類別第一名。

Second is the approach of proposing solutions to customers' issues. JCIB achieved year-on-year growth in both gross profit and net operating profits, mainly due to improved lending spread while reducing risk-weighted assets. We are working to strengthen our risk-taking capabilities in real estate finance and other areas and to provide new solutions to encourage our large Japanese corporate clients to address environmental and social issues and help them grow over the medium to long term.

二是針對客戶問題提出解決方案的方法。 JCIB的毛利潤和淨利潤均實現同比增長，主要得益於貸款利差改善，同時減少了風險加權資產。我們正在努力加強我們在房地產金融和其他領域的風險承擔能力，並提供新的解決方案，鼓勵我們的大型日本企業客戶解決環境和社會問題，幫助他們實現中長期成長。

Third is Asia business. GDP growth in both Thailand and Indonesia is solid in 2022, and both Bank of Ayudhya and Bank Danamon have steadily increased their ROE. Bank of Ayudhya is actively capturing growth in neighboring countries through its inorganic strategy. Bank Danamon is accelerating group-wide collaboration centering on the area of consumer finance.

第三是亞洲業務。 2022 年泰國和印尼的 GDP 成長穩健，大城銀行和金融銀行的 ROE 均穩定提高。大城銀行正透過其無機策略積極捕捉鄰國的成長。金融銀行正加速以消費金融領域為中心的集團範圍內的合作。

Fourth is GCIB and Global Markets. ROE improved as a result of strengthening highly profitable institutional investors finance and strong sales and trading activities while offsetting the sluggish corporate bond market by capturing loan demand in light of the recent changes in the market environment.

第四是 GCIB 和全球市場。淨資產收益率的改善得益於高利潤機構投資者融資的加強以及強勁的銷售和交易活動，同時根據近期市場環境的變化，透過抓住貸款需求來抵消公司債市場的低迷。

Fifth is global AM/IS. Global AM continued to exceed its targets in terms of performance of assets under management, despite highly volatile market conditions. Global IS increased its funds under administration mainly, due to synergies from the combined provisions of higher value-added services such as finance and foreign exchange.

第五是全球AM/IS。儘管市場條件高度波動，但全球資產管理公司在管理資產的績效方面繼續超越其目標。 Global IS管理資金的增加主要是由於金融、外匯等高附加價值服務綜合提供的綜效。

Next, I will explain our progress in structural reforms. Please turn to Page 41, which shows cost and risk-weighted asset control. In expenses, we are making steady progress in reducing base expenses. Excluding the impact of FX fluctuations, the first half of this fiscal year, following last year, achieved year-on-year reductions, and we are pretty confident about the progress of our expense control.

以下我介紹一下結構性改革的進展。請翻到第41頁，其中顯示了成本和風險加權資產控制。在費用方面，我們在減少基礎費用方面正在穩步取得進展。剔除匯率波動的影響，本財年上半年繼去年之後，實現了同比下降，我們對費用控制的進展還是很有信心的。

Page 42 shows risk-weighted asset, which increased from March 31, 2021 but decreased by JPY 3 trillion in real terms, excluding the foreign exchange impact, indicating our solid control. The risk return ratio has also improved as evidenced by an increase in the lending spread, and we will continue to ensure disciplined management of our operations.

第42頁顯示風險加權資產，較2021年3月31日增加，但扣除匯率影響，實際減少了3兆日元，顯示我們的控制紮實。風險回報率也有所改善，貸款利差的擴大證明了這一點，我們將繼續確保對業務的嚴格管理。

Please turn to Page 43. I will discuss our initiatives to enhance corporate value sustainably. This 4-quadrant map shows our approach to investment, risk-taking, alliances for growth and the overall picture, including what I have explained so far. In addition to taking on various risk-taking challenges in the upper left quadrant, existing business fields, we are actively investing capital and pursuing alliances, including nonfinancial areas in Asia and AM/IS in the upper right quadrant and digital in the lower right quadrant as our major growth strategies. Also, lower left is ESG and sustainability. For example, we are also pursuing investments and alliances in the area of green transformation in order to lead the response to climate change.

請翻到第43頁。這張四象限圖顯示了我們的投資方法、風險承擔、成長聯盟和整體情況，包括我到目前為止所解釋的內容。除了在左上象限、現有業務領域承擔各種風險挑戰外，我們還積極投入資本並尋求聯盟，包括亞洲的非金融領域和右上象限的AM/IS以及右下象限的數位領域作為我們的主要成長戰略。此外，左下角是 ESG 和永續性。例如，我們也在綠色轉型領域尋求投資和聯盟，以引領應對氣候變遷。

Page 44 introduces examples of our most recent initiatives. As a new piece of information, we are taking on a challenge in new business fields and considering entering the advertising business in Japan, as shown on the upper left. In June, we also decided to acquire Capital Nomura Securities to strengthen our business in Asia. The initiatives in the 4 quadrants for growth include those undertaken by each business group, those that cut across business groups and challenges in completely new fields. We will continue to consider the use of capital and partnering with other companies to determine where and how to invest resources to achieve sustainable growth.

第 44 頁介紹了我們最新舉措的範例。作為一個新的訊息，我們正在挑戰新的業務領域，並考慮進入日本的廣告業務，如左上所示。 6月，我們也決定收購資本野村證券，以加強我們在亞洲的業務。四個成長象限中的舉措包括每個業務集團採取的舉措、跨業務集團的舉措以及全新領域的挑戰。我們將繼續考慮利用資本並與其他公司合作，以確定在何處以及如何投資資源以實現永續成長。

Please turn to Page 47. From here, I will talk about capital policy. In the current MTBP, we announced that we will operate with a CET1 ratio target of 9.5% to 10% as our capital management policy. In line with this target range of capital management, we are considering capital allocations, including investments in growth and additional shareholder returns while taking into account the current capital position and future prospects.

請翻到第47頁，從這裡開始我要講的是資本政策。在目前的MTBP中，我們宣布將以9.5%至10%的CET1比率目標作為我們的資本管理政策。根據此資本管理目標範圍，我們正在考慮資本配置，包括成長投資和額外股東回報，同時考慮到當前資本狀況和未來前景。

Please turn to Page 51, which shows our shareholder returns. Regarding dividends, we will pay an interim dividend of JPY 16 per stock as forecasted at the beginning of the fiscal year and maintain our FY '22 dividend forecast of JPY 32 per stock, an increase of JPY 4 year-on-year. Regarding the share repurchase, we resolved to repurchase JPY 150 billion. This is in consideration of the capital release effect from the sale of MUB, which is confirmed to be executed on December 1.

請翻到第51頁，其中顯示了我們的股東回報。關於股息，我們將依照財年年初的預測，支付每股16日圓的中期股息，並維持22財年每股32日圓的股利預測，較去年同期增加4日圓。關於股份回購，我們決定回購1500億日圓。這是考慮到出售MUB的資金釋放效果，該出售已確定於12月1日執行。

In considering the amount of the share buyback, we decided on JPY 150 billion judging that it is desirable to hold capital buffer for the time being, given the increasing uncertainty in the outlook of the business environment, including global inflation trends, rising volatility in financial markets and heightened geopolitical risks. There is no change in our policy of disciplined capital management aimed at improving ROE. We will continue to consider implementing this policy flexibly while keeping a close eye on future changes in the situation.

在考慮股票回購金額時，我們認為考慮到商業環境前景的不確定性不斷增加，包括全球通膨趨勢、金融波動性上升等，暫時持有資本緩衝是可取的，因此決定回購金額為1500億日圓。我們旨在提高股本回報率的嚴格資本管理政策並沒有改變。我們將繼續考慮靈活執行這項政策，同時密切關注未來情勢的變化。

Page 52 shows our equity holdings. As shown on the table on the right, in the first half of FY 2022, we reduced our holdings by JPY 57 billion on an acquisition cost basis and recorded a gain on sales of JPY 117 billion.

第 52 頁顯示了我們持有的股權。如右表所示，2022財年上半年，我們以收購成本為基礎減持了570億日元，銷售收益為1,170億日圓。

Please turn to Page 54. From here, I will explain our approach to sustainability, starting with our approach to carbon neutrality. Left side, sustainable finance is progressing steadily, reaching JPY 19.4 trillion as of the first half of FY '22 against our cumulative target of JPY 35 trillion by FY 2030. In addition, as shown on the right side, we are building up a track record of support for a wide range of financing, including renewable energy in Asia, Europe and the Americas.

請翻到第 54 頁。左側，永續金融正在穩步進展，截至22 財年上半年達到19.4 兆日元，而我們的累計目標是到2030 財年達到35 兆日圓。建立一條軌道對各種融資的支持記錄，包括亞洲、歐洲和美洲的可再生能源。

Page 55 shows the progress on supporting customers' decarbonization. On the left side, in the first half of FY '22, we proactively supported industrial transitions by serving as the lead manager for transition bond issuance for customers in various sectors. As shown on the right side, we are also making steady progress in providing decarbonization support services to customers through collaboration with other companies including 251 companies collaborating with Zero Board, a provider of GHG emissions visualization services.

第 55 頁顯示了支持客戶脫碳的進展。左邊，22財年上半年，我們以主導經辦人為各產業客戶發行轉型債券，積極支持產業轉型。如右圖所示，我們也透過與其他公司的合作，在為客戶提供脫碳支援服務方面取得穩步進展，其中包括與溫室氣體排放視覺化服務供應商 Zero Board 合作的 251 家公司。

Page 56 is on rulemaking and communicating our view. We have been leading discussions on rulemaking in Asia and globally. And as an outcome of these discussions, we formulated and published the agent transition finance study group guidelines in September and NZBA transition finance guide in October. Furthermore, in October, we published the MUFG transition white paper with the aim of communicating the pathways for decarbonizing Japan's materials and electric power industries to financial authorities and government officials in Europe and the U.S. We also communicated this concept of transition at COP 27 in Egypt.

第 56 頁是關於規則制定和傳達我們的觀點的。我們一直在主導亞洲和全球規則制定的討論。作為這些討論的成果，我們在 9 月制定並發布了代理人轉型金融研究小組指南，並於 10 月發布了 NZBA 轉型金融指南。此外，我們在10月發布了MUFG轉型白皮書，旨在向歐洲和美國的金融當局和政府官員傳達日本材料和電力行業脫碳的路徑。轉型概念。

Page 57 is on reduction of GHG emissions and organizational structure. Upper left, regarding net zero finance emissions, we plan to disclose new interim target for some sectors in the progress report to be issued next spring In addition to the results for the power and oil and gas sectors, where interim targets have already been disclosed. Lower left, for GHG emissions in our own operations, we shifted our domestic electricity procurement by all domestic consolidated subsidiaries, including NICOS and ACOM, in addition to bank, trust bank and securities to 100% renewable sources.

第57頁是關於減少溫室氣體排放和組織結構的。左上，關於金融淨零排放，我們計劃在明年春天發布的進度報告中披露一些行業新的中期目標。左下，對於我們自己業務中的溫室氣體排放，我們將NICOS和ACOM等所有國內合併子公司以及銀行、信託銀行和證券的國內電力採購改為100%可再生能源。

Upper right shows the details of the NZAM interim targets for 2030, which we disclosed at the end of October as part of our efforts to decarbonize through responsible investment. Lower right is a description on enhancing our organizational structure. Mr. Fuma, an ESG management consultant has been newly appointed as an external adviser. In addition, Ms. Zeniya, who has deep insight into the field of sustainability, has been appointed as the full-time Chief Sustainability Officer and the Chair of Sustainability Committee to strengthen our structure.

右上角顯示了 NZAM 2030 年中期目標的詳細信息，我們於 10 月底披露了該目標，作為我們透過負責任投資實現脫碳努力的一部分。右下是關於加強我們的組織架構的描述。 ESG管理顧問福馬先生新被任命為外部顧問。此外，對永續發展領域有著深刻見解的Zeniya女士被任命為全職首席永續發展長和永續發展委員會主席，以加強我們的架構。

Page 58 is on our approach to natural capital and biodiversity. We recognize that loss of natural capital leads to increased risks in investment and loans while activities to preserve natural capital also lead to new opportunities for investments in loans. Therefore, we believe it is important to properly assess risks and opportunities associated with natural capital and are currently working on this initiative. In preparation for TNFD disclosure in 2023 and beyond, we joined the TNFD Forum in February and started a risk analysis based on the LEAP approach. We also participate in UNEP-FI's pilot program to analyze offshore wind power in Europe.

第 58 頁介紹了我們對待自然資本和生物多樣性的方法。我們認識到，自然資本的損失會導致投資和貸款風險增加，而保護自然資本的活動也會為貸款投資帶來新的機會。因此，我們認為正確評估與自然資本相關的風險和機會非常重要，目前正在致力於這項措施。為了準備 2023 年及以後的 TNFD 揭露，我們於 2 月加入了 TNFD 論壇，並開始基於 LEAP 方法進行風險分析。我們也參與了 UNEP-FI 的試點項目，以分析歐洲的離岸風電。

Please turn to Page 59 on our approach to human capital investment. MUFG is developing and recruiting human resources in line with its management plan, while aiming to be a company where employees are empowered to work lively, making decisions and taking action autonomously, while taking advantage of their diverse values and strength. As shown on the lower left, MUFG is actively promoting systems that encourage employees to take on challenges and develop their careers such as the job challenge as well as training and hiring in priority areas such as digital.

請參閱第 59 頁以了解我們的人力資本投資方法。三菱日聯金融集團正在按照其經營計畫開發和招募人力資源，同時致力於成為一家讓員工積極工作、自主決策和採取行動的公司，同時發揮他們多樣化的價值觀和優勢。如左下所示，三菱日聯正在積極推行鼓勵員工接受挑戰和發展職業生涯的製度，例如工作挑戰以及數位化等優先領域的培訓和招聘。

In inclusion and diversity on the right side, we are promoting various initiatives to increase the ratio of women in management in particular. We have especially strengthened our executive mentoring program where management provides support to women in resolving issues related to career development and have doubled the number of female employees in this program compared to FY '21.

在右側的包容性和多樣性方面，我們正在推動各種舉措，特別是提高女性在管理階層中的比例。我們特別加強了我們的高階主管指導計劃，管理層為女性解決與職業發展相關的問題提供支持，與 21 財年相比，參與該計劃的女性員工人數增加了一倍。

That concludes my explanation. We, MUFG, will uphold our purpose, committed to empowering a brighter future and continue to vigorously pursue challenge and transformation in order to empower all our stakeholders, including society, customers and employees who are in the process of transformation to move forward to the next stage. Let me sincerely ask all our investors and rating agencies for your continued support and further understanding. That concludes my presentation. Thank you for your attention.

我的解釋到此結束。我們三菱日聯將秉承我們的宗旨，致力於賦能更美好的未來，繼續大力追求挑戰和轉型，以賦能所有利益相關者，包括社會、客戶和處於轉型過程中的員工，邁向下一個目標。衷心請求各位投資者和評級機構繼續支持和進一步理解。我的演講到此結束。感謝您的關注。