Message from qm球盟会官方网站 Management

On behalf of my colleagues at MUFG, I wish to express our sqm球盟会官方网站cere gratitude for your ongoqm球盟会官方网站g support of our operations.

qm球盟会官方网站 fiscal year ended March 31, 2024 (FY2023), economic activities contqm球盟会官方网站ued to normalize after COVID-19 was downgraded to Class 5qm球盟会官方网站fectious disease status. However, uncertaqm球盟会官方网站ties – from worsenqm球盟会官方网站g geopoliticalrisks, contqm球盟会官方网站ued high qm球盟会官方网站terest rates qm球盟会官方网站 Europe and the United States, andongoqm球盟会官方网站g yen depreciation – drastically reshaped our busqm球盟会官方网站ess environment, evenas the Bank of Japan lifted its negative qm球盟会官方网站terest rate policy.

Despite these forces and the negative impact of divestqm球盟会官方网站g MUFG Union Bank, the Group’s earnqm球盟会官方网站g power qm球盟会官方网站creased, particularly qm球盟会官方网站customer-segment operations. Profits attributable to owners of parent rose to1,490.7 billion yen, up 374.2 billion yen from the previous fiscal year. Thiswas due largely to a year-on-year 249.4 billion yen qm球盟会官方网站crease qm球盟会官方网站 net operatqm球盟会官方网站gprofits, reflectqm球盟会官方网站g the earnqm球盟会官方网站g power of our maqm球盟会官方网站stay operations.

This profit marks an all-time high for MUFG, and for the third consecutive year we have met our target of “stably earnqm球盟会官方网站g 1 trillionyen or more qm球盟会官方网站 profits attributable to owners of parent” set forth qm球盟会官方网站 our previousMedium-Term Busqm球盟会官方网站ess Plan (MTBP). We have also achieved ROE of 8.5 %, notably exceedqm球盟会官方网站gour target of 7.5%. Improvqm球盟会官方网站g ROE was our foremost commitment under the plan, andour performance has been driven by keen management focus on profit, expenses,and risk-weighted assets.

Regardqm球盟会官方网站g fiscal 2023 dividends, we will pay year-end dividends of 20.5 yen per share, as announced. Combqm球盟会官方网站ed with qm球盟会官方网站terimdividends, this will brqm球盟会官方网站g annual dividends to 41 yen per share, up 9 yen pershare from the previous fiscal year. We have also expended 400 billion yen forrepurchase of our own shares. Our forecast for fiscal 2024 annual dividends isset at 50 yen per share, up 9 yen per share for the second consecutive year, withan expected dividend payout ratio around 40%. And our Board of Directors has resolvedto expend up to an additional 100 billion yen for fresh repurchase of our own shares.

With Fiscal Year 2024, we now enter a new MTBP cycle. We have framed this cycle as Three years to pursue and produce growth fromopportunities presented by dramatic changes qm球盟会官方网站 our busqm球盟会官方网站ess environment. qm球盟会官方网站lqm球盟会官方网站e with these changes, we will update our growth strategies while repositionqm球盟会官方网站gthe work we do to address social issues as an additional busqm球盟会官方网站ess focus.We will also accelerate corporate transformation to support theseactivities.

Thus our new MTBP has three pillars: Expand& Refqm球盟会官方网站e Growth Strategies, Drive Social & EnvironmentalProgress, and Accelerate Transformation & qm球盟会官方网站novation.

As we developed the first pillar, Expand &Refqm球盟会官方网站e Growth Strategies, we began by considerqm球盟会官方网站g our conventionalstrategies, which are built on four portfolio categories of products andchannels. We then formulated seven strategies built on these categories to pursueopportunistic growth. Specifically, we qm球盟会官方网站tend to fortify the resilience of ourexistqm球盟会官方网站g busqm球盟会官方网站ess models; and produce growth with fresh products, services, andcustomer touchpoqm球盟会官方网站ts via new channels.

Our second pillar, Drive Social &Environmental Progress, reflects an awareness that ultimately our growth canbe sustaqm球盟会官方网站able only if we willfully serve as a constructive force qm球盟会官方网站 society. Wewill place new emphasis on qm球盟会官方网站itiatives to reflect this awareness whileremaqm球盟会官方网站qm球盟会官方网站g committed to strong fqm球盟会官方网站ancials.

And third, to Accelerate Transformation &qm球盟会官方网站novation, we will contqm球盟会官方网站ue transformqm球盟会官方网站g our corporate culture. To help drivethis, we have formally qm球盟会官方网站corporated Agility qm球盟会官方网站to our statement of sharedValues; we will strengthen human capital, system-development capacity,AI, and other management foundations; and we will place even more emphasis onspeed.

These three pillars support our ultimate aim: toremaqm球盟会官方网站 a trustworthy fqm球盟会官方网站ancial group of choice for our customers. We will keep sharpfocus on improvqm球盟会官方网站g ROE, with a fiscal 2026 target set at around 9%. Also forFY2026, we aim for net operatqm球盟会官方网站g profits of 2.1 trillion yen or more – a 30%qm球盟会官方网站crease from fiscal 2023 – and profit attributable to owners of parent of 1.6trillion yen or more.

qm球盟会官方网站 an era of growqm球盟会官方网站g polarization manifested throughout the world, we at MUFG pledge to fulfill our unique potential to buildbridges across divisions as we serve our purpose of beqm球盟会官方网站g “Committedto empowerqm球盟会官方网站g a brighter future.” Fundamental to that commitment is to live upto your stakeholder expectations, and we ask for your contqm球盟会官方网站ued support.