Mitsubishi BANK Presentation Strategy e

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Mit subishi UFJ Financial Group

April 2012

The Americas St rategy



1

This document cont ains forw ard-looking st atements in regard t o forecasts, t argets andplans of Mit subishi UFJ Financial Group, I nc. ( “ MUFG” ) and i t s group companies(collect ively, “ t he group” ). These forw ard-looking statement s are based on informat ioncurrent ly available t o t he group and are stated here on the basis of t he outlook at t he tim ethat t his document w as produced. I n addition, in producing t hese st atements certainassumpt ions (premises) have been ut ilized. These statement s and assumpt ions (premises)are subj ect ive and may prove to be incorrect and may not be realized in t he fut ure.Underlying such circumstances are a large number of r isks and uncertaint ies t hat couldcause actual result s to dif fer materially. Please see other disclosure and publi c filingsmade or t hat w ill be made by MUFG and the other companies compr ising t he group,including the latest kessant anshin, financial report s, Japanese and U.S. secur it ies repor t s

and annual reports and filings, for addit ional informat ion regarding such risks anduncert ainties. The group has no obligation or int ent t o update any forw ard-lookingstatements cont ained in t his document .

I n addit ion, information on companies and other entit ies outside the group t hat isrecorded in t his document has been obtained from publicly available inform ation and ot hersources. The accuracy and appropriat eness of t hat information has not been veri fied bythe group and cannot be guarant eed.

< The Peer Group i s compr ised of t he follow ing 19 banks>

Bank of Ameri ca Corp , JP Morgan Chase, Cit igr oup, Wells Fargo Co., U.S. BanCorp , PNC Financial Services Group, I nc.,SunTrust Banks, I nc., BB&T Corp , Regions Financial Corp , Fif t h Third Bancorp, KeyCorp , M&T Bank Corp , Comerica, I nc.,

Hunt ingt on Bancshares I nc., Frist Niagara Financial Group, I nc., Zions Bancorporat ion, First Horizon National Corp,Associated Banc-Corp, City National Corporation



Contents

Weight of t he Americas business w ithi n 4

MUFG

Customer coverage in t he Americas 5

Ext ensive netw ork 6

Overview of t he Americas Business

BTMU.U.S Holdings

(1) Organization 9

(2) Achievements 10

(3) Our aspiration in the U.S. 11

(4) High level Strategy 12

(5) Alliance with Morgan Stanley 13

(6) Non-organic growth 14

Head Quart ers for t he Americas

(1) Overview 18

(2) Overall strategy 19

(3) U.S corporate banking strategy 20

The Americas St rat egy

(4) Latin America strategy 21

(5) Financial results 22

Union Bank

(1) Overview 25

(2) Organization 27

(3) Business characteristics 29

(4) Strategy 30

(5) Financial results for FY11 31

The Ameri cas St rat egy (Cont ’d)

Summary

Regulatory environment 41

Regulatory environm ent

2



3

Overview of t he Americas business

The Americas st rategy

Regulatory environment



The Ameri cas net operating prof it s (JPY bn) * 1Net operating pr ofit s by cust omer segment ( FY11 Q1-3)

4

Weight of t he Americas business w it hin MUFG

“ Global” net operating profit s approx. 22% of MUFG’s tot al. The Americas profits apporx. 45% of

“ Global” tota l.

More grow th of Ameri cas business is one of t he key point s of overseas st rat egy

(JPY 803.4bn) (JPY 176.4bn)

MUFG t ot al By regions

TheAmericasbusinessApprox.

45%

*1. Exchange rates: Those adopted in our business plan ($/¥=95, etc.)

Asia

Europe

Global22%

UNBC26%

Americas19% 54.1

76.1

53.3

108.8

101.7

76.3

162.9

174.2

129.6

64.8

109.5

177.9

46.4

82.7

129.1

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

200.0

FY08 FY09 Q1-3

FY11

Americas UB

FY10 Q1-3

FY10



30%

6%

7%

37%

18%

Revenues by Segment (Oct- Dec 2011)

5

Customer coverage in t he Americas

Comm ercial Banking business model w it h w ell-balanced cust omer coverage

1

2

3

4

5

Large corporate custom ers

Across the U.S.

Asian Corpor ate

Asian (primarily Japanese) corporate customers

Significant customer penetration (Japanese)

Across the U.S.

Retail

1.05 mn households

Primarily in West Coast(California, Oregon, Washington)

Lat in America and Canada

Small/ Middle corporate custom ers

Primarily in West Coast(California, Oregon, Washington)

1

2

3

4

5



66

Ext ensive netw ork

BTMU:17 locat ions in Nort h America, 7 locations in Sout h Ameri ca

UB:414 branches, mainly i n Calif orn ia, good coverage in m any desirable w est coast

Net w ork in t he Americas

North America

South America

Vancouver

Seattle

San Francisco

Los Angeles

Minnesota

Chicago

Kentucky

Dallas

Houston

Mexico City

Montreal

Toronto

New York

Washington

Atlanta

Cayman

Boston

Caracas

Bogota

Rio de Janeiro

Sao Paulo

Buenos AiresSantiago

Lima

UB netw ork

San Francisco

Los Angeles

Seattle

Dallas

Houston

Chicago

Boston

New York

Loan production office only



7






88

BTMU.U.S Holdings

Union Bank

Head Quart ers for t he Americas



9

(1) Organizat ion

Established on Jul 1, 2011 f or enhanced governance and oversight t o suppor t large and grow ing U.S.business.

I nt egrated operat ions of BTMU’s Headquart ers for t he Americas (HQA) and Union Bank ( UB) under t hesingle leadership o f Chief Execut ive Off icer f or t he Amer icas (Single U.S. CEO) .

BTMU U.S. Holdings

Advisory Board

U.S. HoldingsDivision

Co-COOA

(COOA of HQA)

Head Quartersfor t he Americas (USA)

Co-COOA

(UB CEO)

Union Bank

U.S. Management

Committee

CEO for t he Amer icas

ERM Sub-Commit t ee

Financial Mgmt.Sub-Committee

HR Sub-Commit t ee

OperationsSub-Committee

I T Sub-Comm it t ee

CMS Sub-Committee

Enhance risk management based onshared market and risk recognition

Establish financial reporting on acombined BTMU U.S. Holdings basis

Coordinate talent management andcompensation structures

Enhance service and efficiency viacommon operational platform

Enhance quality and efficiency in ITsystems

Enhance transactional bankingbusiness across the Americas



1010

(2) Achievement s

I nt egrated plat form for str ategic planning and business promotion, governance and riskmanagement , I nfr ast ructure development and human capital and comm unicationenhancement in t he U.S.

Ranked number one in the project finance league table for the Americas for two consecutive years in

2010-2011. The power & utility segment is the largest contributor where joint marketing has beencarried out under MUFG brand

Integrated CMS and transaction banking platform of BTMU HQA and Union Bank under singleleadership (Union Bank’s director responsible for corporate deposits)

Redefined custom er segment s (large companies, Asia companies including Japanese,m id-ranked/ SMEs (comm ercial), retail customers) and cust omer coverage t o clarify t hero les of BTMU HQA and Union Bank . St rengt hened business areas w here BTMU HQA andUB have compet it ive advantage t hrough effect ive use of r esources

Developed a st ructu re t o st reaml ine operat ions in areas w here BTMU HQA and UnionBank had overlapping businesses t o seek synergies t o improve services and reduce costs



1111

“ BTMU U.S. Holdings aspires t o achieve a premier posit ion among U.S. banks bybecoming one of the top 10 banking groups as measured by size and prof it abilit y. “

(3) Our aspiration in t he U.S.

BTMU U.S. Holdings “ Vision & Aspirat ion”

Ranking in t he U.S. as of Dec 2011

Rank Bank Holding Com pany Nam eTotal Domesti c

Loans ($ bn)

1 Bank of America Corp. 869

2 Wells Fargo & Co. 797

3 JPMorgan Chase & Co. 645

4 Citigroup Inc. 390

5 U.S. Bancorp 214

6 PNC Financial Services Group 160

・・・

10 BB&T Corp. 111

11 Ally Financial Inc. 98

12 BTMU U.S. Hold ings 95

Rank Bank Holding Com pany Nam eTotal Domesti cDeposits ($ bn )

1 Bank of America Corp. 957

2 JPMorgan Chase & Co. 852

3 Wells Fargo & Co. 849

4 Citigroup Inc. 343

5 U.S. Bancorp 215

6 PNC Financial Services Group 186

・・・

10 Capital One Financial Corp. 127

・・・

16 BTMU U.S. Hold ings 81

(Source) SNL



1212

(4) High level st rategy

Layer 2Organizational Synergy betw eenBTMU / UB

MAXI MI ZE OPPORTUNI TI ES

Revenue Synergies Cost Synergies

Layer 1 Organic Grow t h

ACCELERATE GROWTH ACHI EVE STRONG FOUNDATI ON

Expand Customer Base

MUFG Group Collaboration

Support Functions (HR/IT/Risk)

Layer 3 Non-Organic Grow th

UNLOCK STRATEGI C POTENTI AL

High Value Acquisition(Incremental & Transformational /Bank & Non-bank)



1313

BTMU and Mor gan Stanley

BTMU and Morgan Stanley collaborate through Morgan Stanley MUFG Loan Partners, LLC, a loan marketing joint venture, to providecorporate customers in the Americas with access to world-class lending and capital markets services by leveraging the expertise of MUFGand Morgan Stanley

(5) Alliance w it h Morgan Stanley

Alliance w it h Morgan Stanley in the Americas

UB and Morgan Stanley

UB and Morgan Stanley collaborate through commercial lending and asset management (e.g. marketing of UB investment products through

Morgan Stanley Smith Barney’s distribution channels).

Morgan Stanley MUFG Loan Partners, LLC

50% 50%

BTMU and Mor gan Stanley j oi nt ly conduct mar ket ing

Custom ers in t he Americas

(U.S., Canada, Latin America)(Source)： Calculated by BTMU based on Loan Pricing Corporation data

5.3212,670189MUFG+ Morgan Stanley5

4.1164,295152MUFG* 17

17.6703,640688Bank of America Merrill Lynch2

12.8512,708267Citi3

1.248,37537Morgan Stanley*114

8.8349,960519Wells Fargo & Company4

18.7748,258600JP Morgan1

Share(% )

Amount($ mn)

#Bank Holding CompanyRank

(Jan 2011 to Dec 2011)U.S Syndicated loan (I nvestment Grade Agent only)

*1. Including U.S. Loans which were not arranged by Morgan Stanley MUFG Loan Partners, LLC



1414

(6) Non-organic grow t h

I n order t o become a t op 10 U.S. bank, act ively pursue qualit y acquisit ionopport unit ies t hat meet key st rategic and f inancial crit eria

(Examples of invest ment crit eria)

St rat egic fit

- Expand geographic reach

- I mprove market share in exist ing markets

- Diversify revenue and prof it st reams

- Scale benefi t s

- Business model f it

Cost synergies

Revenue synerg ies

I nvestm ent ret urn



15

Front ier Bank

Dat e of acquisit ion

Apr 30, 2010

Assets and liabilities acquired

Assets: USD 3.2 bn (including USD 2.8 bn in loans)

Deposits: USD 2.5 bn

Branch net w ork

Washington: 47 branches, Oregon: 4 branches

Str ategic im plicat ions

Washington is a highly promising market; market size andpopulation growth ranked high among 50 US states.

Establishment of solid branch network in Seattle to createextensive network to cover the entire U.S. West Cost.

15

Tamalpais Bank

Dat e of acquisit ion

Apr 16, 2010

Assets and liabilities acquired

Assets: USD 0.6 bn (including USD 0.5 bn in loans)


Branch net w ork

California Marin County: 7 branches

St rategic im plicat ions

Expansion of branch network and customer base in MarinCounty having a high concentration of high earners.

Enables a smooth entry into the area where branchestablishment is highly competitive.

(6) Non-organic grow th

I n Apr 2010, Union Bank acquir ed Tamalpais Bank and Fron t ier Bank t hrough an FDI C-assisted deal

Union Bank complet ed the acquisit ion of both banks as planned, current ly t ransforming commercialmor t gage business model t o housing loan business model w hile str iving t o achieve cost synergies



Outline

Pacific Capital Bancorp is a NASDAQ-listed bank holding

company which owns Santa Barbara Bank & Trust (SBB&T). SBB&T is a mid-sized bank operating 47 branches in

California’s Central Coast area.

Primary focus is deposits/lending to commercial and smallbusiness along with wealth management. Pacific CapitalBancorp retains the top deposit share in Santa Barbara.

Branch net w ork

Operating 47 branches mostly in Santa Barbara (including 4in-store branches)

1616

(6) Non-organic grow t h

On Mar 12, 2012 , UnionBancal Corporati on ( UNBC) and it s prim ary subsidiary, Union Bank, announced

t hat UNBC has entered int o a definit ive agreement t o acquir e Pacif ic Capit al Bancorp, a bank holdingcompany, for USD 46 per share in cash

Asset s and liabilit ies

Assets: USD 5.9 bn


Deal out line

Acquisition Price: USD 1,517 mn

Adjusted tangible book value : USD 941 mn

Price to adjusted tangible book value: 1.6 times

Planned closing: fourth quarter of 2012

Str ategic im plicat ions

Acquisition of a leading bank in Santa Barbara.

Expansion of retail business and branch network.

Provision of community-based banking services tocustomers in Santa Barbara and California’s Central Coastarea.

Provision of products and services in commercial and smallbusiness lending along with wealth management; expansionof revenue through enhancement of cross-selling and otherapproaches.

Santa Barbara

Los Angeles

San Diego

San Francisco

Sacramento

Union Bank Santa Barbara Bank & TrustCA

Pacific Capit al Bancorp



1717

BTMU U.S. Holdings

Union Bank

Head Quarters for t he Americas



1818

(1) Overv iew

Customer Base

U.S./ CanadianCorporate

Primary focus on investment grade customers. Approximately550 customers

Stronger tie with UB in wholesale banking business

Asian Corporate Solid Japanese customer base as a biggest Japanese bank

Customer base recently expanded to Non-Japanese Asiancorporates

3,500 Asian corporate customers in the U.S. market (Ranked1st among Japanese Banks)

Lat in AmericanCorporate

Approximately 150 of existing and prospect Latin Americancustomers

In Brazil, increase customer base with resource enhancement

Lima Rep established in Feb 2011(Chaged Sub-office in Mar2012) to expand customer base in the Andes

Business Lines

Corporate BankingDivision for theAmericas No.1

Promote Japanese & Asian corporate business

(NY)

InvestmentBanking Divisionfor the Americas

Promote syndicated loans, asset finance and

structured finance in the Americas


Promote Japanese & Asian corporate business(Chicago)

Global MarketsDivision for theAmericas

Promote market business including foreign currencytreasury & exchange


Promote Japanese & Asian corporate business

(LA and SF)

Overseas branches Promote Japanese & Non-Japanese corporatebusiness

Corporate BankingDivision for the

Americas No.4

Promote business with blue-chip Non-Japanese

companies mainly included in Fortune 500

Management

CEO for the Americas, Chief Operating Officer forthe Americas

Head of Corporate & Investment Banking

Head of Asian Corporate Banking

Chief Risk Officer for the Americas

Chief HR Officer for the Americas

Chief Credit Officer for the Americas

General Manager Planning Division

Chief Administrative Officer for the Americas

General Counsel



1919

(2) Overall st rategy

Expansion of customer base, and enhancement of product line

Enhanced alliance with MUFG affiliates

Enhancement of banking model (including local currency deposits)

Promotion and enhancement of Central and South America business (allocation of resources according to country strategies)

Achievement of St able and Sustainable Grow th

Development of organizational and governance structures covering the entire Americas

Enhancement of compliance and risk management structures to accommodate

expanding business and tighter regulation Drastic reform of local staff management through the establishment of Human

Resources Division for the Americas

Enhancement of communications in the Americas

Enhancement of Organizat ional St ructu re, I nfrast ructure,and Human Capit al across t he Americas



2020

(3) U.S. corporate bank ing str ategy

Expand client coverage

Utilize current market challenges to up-tier relationships

Maximize credit revenue, through increasing quality assets and effectively balancingrisk and return

Organic Grow t h

Continue to develop higher margin products solutions(Supply Chain, Global Financial Solutions)

Global approach to platform capabilities, close gaps where possible

Product Development/ Expansion

Early engagement of DCM and Advisory on Acquisition Finance opportunities

Tightly integrated coverage with MUS(USA) and Morgan Stanley

Continue to build platform and capabilities

Drive Capital Markets Grow th





Latin American

Corporate etcU.S./Canadian

Corporate Asian and

Japanese

Corporate

5.4

4.92.6

0

20

40

60

80

100

Gross profi t s by segment (JPY bn) * 1 Breakdow n of changes in gross profit s (JPY bn) * 1

22

(5) Financial result s Out line of result s by business segment

Gross prof it s FY11 Q1-3 increased in all segment s compared to FY10 Q1-3

The main dr ivers were increase of Non-Japanese CI B business (syndicate loan, proj ect fi nance）, andLatin Amercia business

*1. BTMU consolidated. Exchange rates: Those adopted in our business plan ($/¥=95, etc.)

6.4 11.8

48.0

52.9

15.8

18.4

83.1

70.2

0

20

40

60

80

100

FY10 Q1-3 FY11 Q1-3

Latin American Corporate etc U.S./Canadian Corporate

Asian and Japanese Corporate FY10 Q1-3 FY11 Q1-3

70.2

83.1



Average exposures balance／Average loan balance($ mn)

96,77799,472

106,214109,966

115,914

40,95738,32136,65233,67032,358

0

30,000

60,000

90,000

120,000

FY10 Q3 FY10 Q4 FY11 Q1 FY11 Q2 FY11 Q3

Exposure Loan

23

Exposures by segment * 1

23

(5) Financial result s Exposures(Loan, Comm itment , LC, Securit ization)

FY11 Q3 exposures increased 20% fr om FY10 Q3

62% U.S. and Canadian corporate, 29% Asian and Japanese corporat e, 7% Lat in American corporat e

*1. Average balance for FY11 Q3

Latin

AmericanCorporate

7%

Others

2%

U.S./Canadian

Corporate

62%

Asian and

Japanese

Corporate

29%



24

BTMU U.S. Holdings

Union Bank

Headquart ers for t he Americas



25

(1) Overview Company prof ile and hist ory

UB Company Prof ile* 1

Head off ice San Francisco

Branches 414 (mainly in California)

Employees 10,437

Total asset s USD 89.6 bn / JPY 7.4tn

Total loans USD 53.5 bn / JPY 4.4tn

Total deposit s USD 64.4 bn / JPY 5.2tn

Net businessprof i ts

USD 879 mn / JPY 72.1bn

Net I ncome USD 778 mn / JPY 63.8bn

The second largest bank headquar tered in Califor nia, w it happroxim ately 150 years of hist ory

*1. Figures are for FY11 or as of end of FY11, converted at 82 yen to a dollar

History

1864 The Bank of California established as the first

commercial bank in the west coast of the USA

1883 First National Bank of San Diego (later changed

its name to Southern California First NationalBank) established

1914 Kaspare Cohn Commercial and Savings Bank

(later changed name to Union Bank) established

1975

Bank of Tokyo California acquired SouthernCalifornia First National Bank to form CaliforniaFirst Bank

1984 The Mitsubishi Bank acquired The Bank of

California

1988 California First Bank acquired Union Bank

(Union Bank name retained)

1996

As a result of the merger of The Mitsubishi Bank and The Bank of Tokyo, The Bank of Californiaand Union Bank merged to form Union Bank of California

2008 Became a wholly owned subsidiary of BTMU and

Bank name was changed to Union Bank



26

(1) Overview Ranking in t he U.S.

Ranking in t he U.S.* 1

Bank nameTotal deposit s

($ bn)

1 Bank of America 949

2 Wells Fargo 761

3 JPMorgan Chase Bank 743

4 Citibank 318

5 U.S. Bank 198

6 PNC Bank 181

・・・

10 The Bank of New York Mellon 106・・・

21 Union Bank 56

Ranked 21st i n t he U.S. and 4t h in Califor nia in t erms of t otal deposit s as of Jun 2011

*1. As of end Jun 2011

(Source) SNL

Ranking in Calif orni a* 1

Bank nameTotal deposit s

($ bn)

1 Bank of America 226

2 Wells Fargo Bank 172

3 JPMorgan Chase Bank 65

4 Union Bank 53

5 Citibank 45

6 U.S. Bank 31

7 Bank of the West 26

8 City National Bank 18

9 Onewest Bank 16

10 First Republic Bank 15

(Source) FDIC



27

(2) Organizat ion Corporate governance

UnionBanCal’s Board of Dir ect ors has 15 m embers, 11 of w hich are independent

Established 4 comm it tees under the Board, all chaired by independent directors Comm it ted to good disclosure, including volunt arily issuing quarterly earnings releases

Filing quart erly and annual financial stat ements wit h the SEC

MUFG Shareholder

Other subsidiaries(Leasing, etc.)

100%

BTMU

UnionBanCalCorporation

(Holding company)

Union Bank, N.A.(Bank subsidiary)

Other subsidiaries(Securit ies, et c.)

100%

100%

Board of Director s

Audit & Finance Comm it tee

Risk Commi tt ee

Executive Compensation &

Benefits Commi t teeNominating &

Governance Comm it t ee

Directors

Nobuo Kuroyanagi

(UnionBanCal Corp director only) Tatsuo Tanaka (Deputy president of

MUFG)

Masaaki Tanaka (Senior ManagingExecutive officer, BTMU)

Masashi Oka (President & CEO)

I ndependent Direct ors

Aida Alvarez (former Administrator, Small Business

Administration) David Andrews (retired SVP, Governmental Affairs,

General Counsel & Secretary, PepsiCo, Inc.)

Nicholas Binkley (Partner, Forest Binkley & Brown)

Dale Crandall (President, Piedmont Corporate Advisors,Inc.)

Murray Dashe (retired Chairman, CEO & President, CostPlus, Inc.)

Mohan Gyani (Vice Chairman, Roamware, Inc.)

Christine Garvey (former global head of Corporate Real

Estate & Services, Deutsche Bank AG) Takeo Hoshi (Professor, University of California, San

Diego)

Fernando Niebla (President, International TechnologyPartners, LLC)

Barbara Rambo (CEO, Taconic Management Services)

Dean Yoost (retired Partner, PriceWaterhouseCoopers)



28

(2) Organizat ion Management team

A U.S.-based management t eam of m ost ly Ameri can execut ives

Execut ive Comm it t ee mem bers:

Chief Liaison Officer & DeputyChief Financial Officer

President &Chief Execut ive Off icer

Vice Chairman & Chief Corporate Banking Officer

Vice Chairman & CFO

Commercial Banking

Global TreasuryManagement

Real Estate Industries

Community Banking

Human Resources

Chief Information & Operations Officer

Vice Chairman & Chief Risk Officer

Vice Chairman & Chief Retail Banking Officer

Independent Risk Monitoring

General Counsel



29

(3) Business characterist ics

Port folio is w ell balanced betw een corporate and retail segment s

Retail Bank(Approximately One-Third of Revenue)

Deposit and lending products for individuals and smallbusinesses, served primarily through our branches and

online banking

Products include mortgages, home equity lines of credit, small business loans and a broad array of personal and business deposit and investment

products Serves approximately 1.05 mn households and

small businesses

High-touch, high-quality customer service

High-quality residential mortgage portfolio

Corporate Bank(Approxim ately Half of Revenue)

Offers a wide array of credit and non-credit productsto a variety of customer segments including a focus on

the wealth market, as well as middle market andcorporate businesses headquartered throughout theU.S.

Lending activities also centered around severalspecialized industries such as power and utilities, real

estate, technology, healthcare, petroleum as well asgeneral corporate lending in various U.S. regionalmarkets

Broad product categories:

Capital Markets

Treasury Management Services

Brokerage

Asset Management



30

(4) St rategy

Union Bank w ill use “ St rategic Levers” t o make focused changes to it s business model and address the

new operating environment

Total Cost Rebase

Use Creativi t y and I nnovation t o

Captu re Organic Opport uni t ies

Build St rong Foundat ion

B/ S & Capital Opt im izat ion

M&A

Operational Excellence

Retail & Corporate Banking

E-commerce Enhancements

Retail Distribution

Business Banking

Cross-Sell

Wealth Platform

Value Proposition

Treasury Investments/BS Optimization

Strong Risk Management Connected to Strategy

Invest in Technology Infrastructure

Bank Acquisitions / Sources of New Fee & Product Businesses



31

(5) Financial result s for FY11 I ncome statement summary

Consolidated I ncome Stat ement ($ mn)

FY10 FY11

Change

1 Total revenue 3,347 3,294 (53)

2 Net int erest income 2,424 2,478 54

3 Noninterest income 923 816 (107)

4 Servi ce charges on depositsaccounts

250 228 (22)

5Trust and investmentmanagement fees

133 132 (1)

6 Merchant banking f ees 83 97 14

7Brokerage commissions andfees

40 47 7

8 Card processing f ees, net 41 37 (4)

9 Trading account act ivit ies 111 126 15

10 Securities gains, net 105 58 (47)

11 Noninterest expense 2,372 2,415 43

12Salaries and employeebenefits

1,230 1,385 155

13 Other t han above 1,142 1,030 (112)

14 Pre-t ax, pre-provision income 975 879 (96)

15 Provision f or l oan losses ▲182 202 384

16 I ncome (loss) before incometaxes and includingnoncontrol l ing interests

793 1,081 288

17 Net income (loss) 573 778 205

Pre-tax,pre-provisionincome

Net interest income increased primarily due to:

Higher loan volumes in both corporate andretail banking

Noninterest income decreased primarily due to:

Declining deposit fees due to regulatorypressures , an industry-wide challenge

Lower gains on the sale of securities (relatedto gains in FY10 from securities portfolio re-balancing)

Operating expenses increased primarily due to:

Increase in salaries and employee benefitsexpense, including acquisition and productivity

initiative costs The increase was partially offset by reduction

in significant one-time charges recorded inFY10 and reduction in regulatory assessmentexpense

Pre-tax pre-provision income down 10% due to

lower noninterest income

Provisionfor loanlosses

Total provision for credit losses was a benefitof USD 202 mn due to improvement in creditquality throughout the portfolio

Netincome

Strong growth in FY2011 with net income of USD 778 mn

(5) Fi i l l f FY11 O li f l b b i



Breakdown of changes in total revenue ($ mn)

32

Total revenue by segment ($ mn)

(5) Financial result s for FY11 Out line of result s by business segment

Total revenue increased for corporat e and retail segment s fr om FY10 t o FY11:

Corporate and retail r evenue grow th driven prim arily by increased interest income due t o loan grow t h

Other revenue decreased prim aril y as a result of low er gains on the sale of securit ies

0309

127

1,7751,817

1,2631,350

3,2943,347

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

FY10 FY11

Others Corporate Retail

3,3473,294

Others

(182)Retail

87Corporate

42

1,500

2,000

2,500

3,000

3,500

4,000

FY10 Corporate Retail Others FY11

(5) Fi i l lt f FY11 B l h t



33

Loans Increased due to loan growth across

most loan categories, reflectingimproved lending conditions in FY11

Securities

Year-end balance increased due toincrease in government sponsoredagencies and commercial mortgage-backed securities

Deposits Year-end balance increased partially

due to increase in non-interest bearingdeposits

Non-performingassets

NPA levels improved as economystrengthened and asset qualityimproved across the board

NPA ratio*1 continued to improve to0.70%, favorable compared to peers

(5) Financial result s for FY11 Balance sheet sum mary

Consolidated Balance Sheet ($ m n)

EndDec

2010 Change

1 Total assets 79,097 89,676 10,579

2 Loans 48,094 53,540 5,446

3 Securities 22,114 24,106 1,992

4 Available for sale 20,791 22,833 2,042

5 Held to maturit y 1,323 1,273 (50)

6 Total l iabilit ies 68,706 77,846 9,140

7 Deposits 59,954 64,420 4,466

8 Noninterest bearing 16,343 20,598 4,255

9 I nterest bearing 43,611 43,822 211

10 Total equity 10,391 11,830 1,439

11Net i nt erest margin

FY103.24%

FY113.38% 0.14%

12 Nonperforming assets 1,142 782 (360)

13 Nonperforming assetst o tot al assets* 1 1.15% 0.70% (0.45%)

*1. Excluding FDIC covered assets

EndDec

2011

(5) Fi i l lt f FY11 L



34

Period-end Loans ($ mn) Loan Port fol io* 1

(5) Financial result s for FY11 Loans

St rong 11% loan grow th during FY11 reflects franchise st rength and balance

UB has a w ell-balanced loan port folio w it h a relatively low concent rat ion in CRE

*1. Loans as of end Dec 2011

Construction

1%

Commercial

Mortgage

15%

Lease

Financing

2%

Residential

Mortgage

37%

Commercial &

Industrial

36%

Home Equity

& Other

Consumer

7%

FDIC Covered

Loans

2%

46,584 46,715 47,718 49,90452,591

1,510 1,390 1,2491,094

94948,094 48,105 48,967

50,99853,540

0

10,000

20,000

30,000

40,000

50,000

60,000

FY10 Q4 FY11 Q1 FY11 Q2 FY11 Q3 FY11 Q4

FDIC Covered Loans

Loans Held for Investment, excluding FDIC Covered Loans

(5) Financial result s for FY11 Credit Qualit y



Net charge-offs／Average loans (year-t o-date)

0.03%

1.02%

0.04%

0.79%

0.48%0.37%0.33%

2.59%

1.39%

2.47%

1.40%

0.53%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

FY06 FY07 FY08 FY09 FY10 FY11

UB Peers Average

NPL/ Total loans (at period-end)

35

(5) Financial result s for FY11 Credit Qualit y

NPL ratio consistently low er t han peers, due to diff erentiated business model, loan m ix, and long-t erm

commi tm ent t o conservative credit m anagement UB manages risk t hrough por tf olio diversification, industr y concentration lim it s, loan limit s, geographic

distr ibution, and type of borrow er

No subprim e or opt ion ARM resident ial mor tgages loans

Low r esident ial mor tgage delinquency rat e due to focus on prim e loans, high FI CO scores, and low LTVs

(Source) SNL. Excludes FDIC covered assets for Union Bank (Source) SNL. Excludes FDIC covered assets for Union Bank

0.14%

2.79%

0.46%

0.84%1.12%

1.82%

0.11%

1.03%

2.31%

4.04%

3.46%

4.65%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

FY06 FY07 FY08 FY09 FY10 FY11

UB Peers Average

(5) Financial result s for FY11 Deposit s



Period -end Core* 1 Deposits ($ bn )

15 15 16 18 18 20 21

5 5 5 4 44 45 5 4

5 55 5

29 27 25 22 2122 23

54.252.0

50.1 49.450.7

52.8

48.2

0

10

20

30

40

50

60

FY10 Q2 FY10 Q3 FY10 Q4 FY11 Q1 FY11 Q2 FY11 Q3 FY11 Q4

Core Noninterest Bearing Deposits Domestic Time <= $250K

Core Savings Core Transaction & MMA

36

(5) Financial result s for FY11 Deposit s

Recent grow th in deposit s has been driven by customers w it h lim it ed invest ment alternat ives due to

low interest rates, consist ent w it h industr y t rends Reduct ion in t otal and core deposit s from early-FY10 t hrough mid-FY11 reflect ed planned runoff of

t argeted higher rate deposit s; recent return t o grow t h has been in Core Noninterest Bearing Deposit s

Average cost of in terestbearing deposit s

0.59% 0.56% 0.50% 0.50% 0.53% 0.53% 0.51%

*1. Excludes brokered deposits, foreign time deposits, and time deposits > $250k

(5) Financial result s for FY11 Net int erest margin



Net I nt erest I ncome and Net I nt erest Margin Trend ($ mn)

37

(5) Financial result s for FY11 Net int erest margin

Declining t rend in net int erest margin due to im pact of conti nued low interest rate environment, w hile

t he margin i s leveling off in recent quart ers due to low er average deposit rates Net int erest income averaged higher in FY11 pr imarily due t o grow th in average earning assets,

part icularly securi t ies and tot al loans

578574

601

618

631

618614 606

640

3.09%2.98%

3.11%

3.36%3.53% 3.49% 3.44%

3.31% 3.29%

500

550

600

650

700

FY09 Q4 FY10 Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY11 Q1 FY11 Q2 FY11 Q3 FY11 Q4

0.00%

1.00%

2.00%

3.00%

4.00%

Net Interest Income NIM

(5) Financial result s for FY11 Liquidit y



38

Deposits & Wholesale Funding ($ bn)

(5) Financial result s for FY11 Liquidit y

UB maintains a robust l iquidit y profi le anchored by a strong deposit base w it h diverse source of

w holesale funding capacity Port foli o of high-qualit y securit ies, mainly U.S. government bonds and Agency RMBS, can be readily

convert ed to cash or serve as collateral

UB has secured borr ow ing facilit ies w it h t he FHLB and t he Federal Reserve Bank ( FRB)

Securi t ies available for sale ($ mn )

AmortizedCost

GrossUnreal ized Fai r Value

Total 22,626 207 22,833

U.S. Gov' t

Sponsored AgencyDebentures

6,943 54 6,997

MBS-U.S.Government &Gov't agencies

13,307 178 13,485

MBS-private label 800 (62) 738

ABS and debtsecurities

1,495 37 1,532

Equit y securit ies 81 0 81

Deposits

60.0

Fed Funds

Purchased

and other1.0

Commercial

Paper

2.5

FHLB

4.1

Negotiable

CDs

4.4

Medium- and

Long-termd

Debt

3.1

$75.1 bill ionAs of end Dec 2011

(5) Financial result s for FY11 Capital posit ion



39

(5) Financial result s for FY11 Capital posit ion

Tier 1 common and TCE rat ios compared very favorably w it h peers at end Dec 2011

At end Dec 2011: BI S Tier 1 rat io 13.82% , tot al capital rat io 15.98%

No government funds in capital st ructu re

Sizable capital cushion, available to support organic grow th and acquisit ions

Select Capital Ratios ($ mn)

EndDec. 10 Change

1 Total capital rat io 15.01% 15.98% 0.97%

2 Tier 1 rat io 12.44% 13.82% 1.38%

3Tangible comm onequity ratio

9.67% 10.20% 0.53%

4 Tier 1 capital 8,029 9,641 1,612

5 Tier 2 capital 1,656 1,501 (155)

6 Total capit al 9,685 11,142 1,457

7 Risk-w eighted assets 64,516 69,738 5,222

Comparison of Capital Rati os w it h Peers (As of end Dec 2011)

(Source) Company disclosures

13.82%

10.20%10.12%

7.79%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

Tier 1 common capital ratio Tangible common equity

ratio

UnionBanCal Peers Average

EndDec

2011

EndDec

2010



40




Regulatory Environment



41

Regulatory Environment

1. Dodd-Frank Act (as of Mar 2012)Descr ipt ion I mplicat ions

EnhancedPrudentialStandards forU.S. SI FI s* 1

Enhanced capital & liquidity standards, single-counterparty credit limit, stress test, etc

Collins Amendment: Sets BASEL I capital requirements asfloor for BHCs and excludes TruPS from Tier 1 Capital

Application to MUFG not clear yet. UNBC needs to meetthe same requirement as US BHCs

In Jan 2012, UNBC filed its Capital Plan Review with theFederal Reserve. In Mar, the Federal Reserve notified thatit did not object to UNBC’s plan as submitted

Impact of Collins Amendment relatively small for UNBCcompared to other US BHCs

ResolutionPlan(“ Living Wil l”)

Annual submission of Resolution Plan required for U.S.SIFIs

Separately from Dodd-Frank, FDIC has required insureddepository institutions with USD 50 bn or more in total

assets to submit a resolution plan

In the U.S., 2 resolution plans need to be prepared: MUFGU.S. Plan, and UB Plan

Project underway in accordance with the global Living Willproject , which MUFG is requested by the JFSA as G-SIFI

OTC

Derivatives

Regulating the OTC derivatives transactions

Swap push-out provision: Banks need to push-out non-traditional swap operation outside the bank. (Differenttreatment for insured depository and others.)

Higher cost and compliance efforts

Collaboration among the MUFG group in determining thesolution for swap push-out

Volcker Rule Prohibition from engaging in proprietary trading andrestrictions on fund ownership/investment

Wide scope of application globally

Carve-outs for FBOs operations conducted ”solelyoutside of the U.S.”, but not for U.S. banks

Heavy concern stated by various actors (foreigngovernments, agencies, banks, etc.) regarding itsextraterritorial effect

Loss of potential profits from prop trading assumed to besmaller compared to other U.S. and European banks

Unclear definitions and high compliance burden forconducting permitted activities

Extraterritorial effect yet to be seen. (Impact to the JGBmarket, non-U.S. entities, etc.)

*1. U.S. & foreign BHCs with USD 50 bn or more in total assets and non-banks supervised by the FRB

Regulatory Environment (Cont’d)



42

g y ( )

1. Dodd-Frank Act ( cont’d)Descr ipt ion I mplicat ions

ConsumerProtection

More aggressive consumer regulation by newly establishedConsumer Financial Protection Bureau (CFPB) in addition tobeing subjected to additional state consumer protectionlaws

Durbin Amendment: FRB regulating the cap of interchange

fees banks can charge on debit card transactions. Appliesto banks with USD10 bn or more in total assets only

UB facing new regulators (CFPB and State Agencies), highercompliance burden to be expected

Banks and non-banks both being supervised by the CFPBreduces aggressive practice for competition. Inherent scaleadvantages of large banks in consumer lending

Monthly debit interchange income estimated asapproximately half of pre-regulation level at UB.Disadvantage compared to banks which have assets underUSD10 bn, but other fee changes not competitively feasible

Others FDIC Deposit Insurance Assessment: Change in assessmentmethod. Banks taking more risks and systemicallyimportant to bear higher deposit insurance cost

Orderly Liquidation Fund: U.S. SIFIs may have to bear costof FDIC liquidating a financial institution under its OrderlyLiquidation authority

OFR assessment fee: U.S. SIFIs would need to bear cost of newly established agencies under Dodd-Frank

For UB, decrease in deposit insurance cost. Larger U.S.banks such as JP Morgan and Goldman Sachs to pay highercost

Higher cost for maintaining business in the U.S

2. Non Dodd-Frank I t em

Descr ipt ion I mplicat ions

Basel I I I Requires higher capital standards (capital ratio, newdefinitions for capital, leverage ratios, etc.) to be met underphased approach. Also introduces liquidity standards(Liquidity Coverage Ratio and Net Funding Stable Ratio)

G-SIFI capital surcharge to be applied within a range of 1%to 2.5%, depending on the bank’s systemic importance

MUFG named as one of the G-SIFIs and will be appliedcapital surcharge .U.S. implementation of Basel III not yet clear and impactsto UB still unknown

Summary



43

y

Strengthencollaboration w ith

MUFG, Morgan Stan ley

Accelerat e organicgrowth

Address regulationchanges

Cent ral and Sout hAmerica St rat egy

Synergy betweenBTMU/ UB

Operat ional excellence St rong foundat ion

One of t he top 10 U.S. bank ing groups as measured by size and prof it abilit y

Non-organic grow t h

Documents

Mitsubishi BANK Presentation Strategy e