Mitsubishi UFJ Financial Group, Inc. (8306) Earnings Call Transcript & Summary

I am Hironori Kamezawa. Thank you very much for viewing this MUFG Investors Day presentation video. In this MUFG Investors Day, we will talk about the strategies of each business group in the new medium-term business plan that started in April. In developing the medium-term business plan, we defined the purpose of MUFG that is to be committed to empowering a brighter future. This medium-term business plan is about what kind of force MUFG will be in the next 3 years to empower all the stakeholders, including the community, investors and shareholders to move forward. In developing the plan, we acknowledged the harsh reality that we missed the medium-term targets in the past 2 periods in a row, ensured the sense of crisis with heads of each business group that our future cannot be found on an extension of the current course. Then we analyzed the progress and challenges of the programs of the previous medium-term business plan and formulated our concrete strategy for our future growth. As I said at the investor briefing in May, our biggest commitment in the new medium-term business plan is to achieve an ROE target of 7.5%. And to achieve this target, we will have an ROE focused business operation in this medium-term business plan. The ROE targets for each business group that will be discussed today have been cascaded down from the MUFG's overall ROE target. And these have been committed to by the heads of each business group as a result of the intensive discussions we had. First, the entire company will be working as one to achieve this ROE target. In achieving the ROE target, we need to grow the top line and control our resources. So the key is growth strategy and control of expenses and risk-weighted assets at each business group, including the digital service business group that was launched on April 1. Today, the heads of 7 business groups will first review the previous medium-term, and will give an overview of the new medium-term business plan and then discuss in detail key strategies and the path to achieving the ROE target. Through this video, we hope that you will gain a deeper understanding of our business strategy of MUFG new medium-term business plan. The presentations are about 10 minutes each. It will be about 70 minutes in total. I hope you will view the video until the very end.

I am Miyata, serving as the Head of Retail and Commercial Banking Business Group and Head of Wealth Management unit from April this year. Let me share with you the review of the previous medium-term business plan, MTBP, in R&C business group and the strategy under the new MTBP. Lower left chart shows the review of the previous MTBP. The decreases in income in asset management as well as deposits, loans, card and foreign settlement due to lower interest rates and COVID-19 were not fully offset by expense reductions. Therefore, net operating profits in FY '20 was JPY 258.3 billion and failed to achieve the target. The right side shows our achievements and remaining challenges. The two achievements were: one, we accelerated cost structure reforms and reduced our expenses by JPY 110 billion on gross basis, centered on optimization of branches and personnel; and two, we rapidly deepened our cooperation between BK, TB and MUMSS in business domains, including asset management and real estate. On the other hand, we still have remaining challenges in strengthening our profitability and profit structure, such as shifting to advisory business model and enhancing the shift from deposit to investment in asset management as well as enhancing high-added value, high return lending from medium- to long-term perspective in Corporate Solutions. As shown on the lower right chart, we recognize the stronger needs for customer asset and value given the acceleration of aging, population and low birth rate. We will address them and support the resolution of these challenges and enhance our earning capability as a result of that. We also newly established digital services business group in April in order to incorporate the accelerating digital shift into our company-wide strategy. We will collaborate thoroughly to reduce costs further and establish non-face-to-face business model. Please turn to the next page. Next, let me explain the overview of the new MTBP starting with our basic policy and vision. In order to execute our new MUFG way, we aim to help enrich people's lives, support and drive the growth and development of business partners and by extension, the continued prosperity of the Japanese economy. For that purpose, we want to continue being a challenger that delivers value-added services from a new perspective. Our financial targets shown on the right is net operating profits of JPY 140 billion, expense ratio of 77% and ROE of 5%. And the four key strategies to achieve them are listed on the left side. In addition to the enhancement of the existing business foundation, we will strengthen our strategy on earning capability centered on wealth management business and reduce our costs further by rebuilding our sales network and optimizing our personnel in order to realize our plan. Lower left shows our KPIs. Net operating profits in wealth management will increase by JPY 41 billion by FY '23. And base expenses of R&C business group, excluding our growth investment and business volume-linked expenses is planned to be reduced by JPY 24 billion. I will explain the specific actions to realize the main KPIs later. As shown in the lower right chart, our highest priority in achieving ROE target from the top line perspective is to thoroughly approach not only asset management but also customers' assets to expand our business and profit opportunities. Together with the increase in domestic and foreign settlement transactions following the recovery of commercial flow from COVID-19, we will improve ROE by over 2 percentage points. We will also reduce costs restrained credit costs that increased in FY '20 due to COVID-19, as the economic activities normalize and replace RWA with high-return transactions such as business succession lending and improve ROE by over 1 percentage point to achieve the 5% target. Please turn to the next page. Let me explain our business strategies, starting with our strategy concept, namely market opportunity and promotion model. Our business group has 1.6 million retail and 200,000 corporate clients. We have so far focused on profiling that serves as the basis of all transactions. And the asset amount ascertained reached a total of JPY 100 trillion. High net worth individuals have even higher potential, and we plan to increase the profiling assets to JPY 130 trillion by FY '23. Market cap of owners of 2,500 listed companies and total net asset value of 55,000 non-listed clients that have transactions with our business group combined is as large as JPY 150 trillion. It is our mission to resolve challenges on customers' irreplaceable assets such as financial assets, real estate and company's treasury stocks. And this is precisely where we think the opportunity lies. As shown on the right side, we will leverage the group's robust comprehensive capability, including BK, TB, MUMSS, affiliates and business partners to address this market, approach customers' fundamental issues such as capital strategy, succession, real estate, asset management and other needs, pursue value chain businesses and further expand cross transactions. Please turn to the next page that explains each strategy in more detail. First is expand retail value-chain business. In asset management, we will capture the JPY 45 trillion financial asset that has been profiled, real estate sales proceeds and NNA funds to increase our stock balance by JPY 2.6 trillion by the end of FY '23 to enhance stable source of profit. Profit from collaboration with MUMSS is growing steadily along with a number of transactions, and we will expand it further. We need to thoroughly establish our advisory business model as shown on the lower left to make it happen. More specifically, we will provide high-added value advice that captures customer needs through asset management advice chain starting from MUFG Wealth Management GMAP, which is MUFG's health view developed for wealth management customers. We will also strengthen each engine, such as enhancing GMAP using Morgan Stanley's know-how and developing investment products referring to GMAP to differentiate ourselves from our competitors. Next is retail real estate business based on inheritance needs. Please look at the upper right. Gross profits from asset management, insurance and real estate brokerage will double by implementing total asset-based sales for the interest of testamentary trust. Current implementation ratio for wealth management segment remains at around 20%, but we will leverage digital means such as wealth management digital platform that I will elaborate on later to promote behavioral change of the person in charge and efficient sales activities and approach our customers thoroughly. By strengthening such approach, while acquiring 50,000 interested cases and JPY 12 trillion balance by the end of FY '23, we will steadily increase real estate brokerage fee income. For that purpose, BK will proactively improve the knowledge and skills of person in charge, improve the quality of the deals where we share information and strengthen our origination while TB established real estate department in key areas to handle large quantity of deals and strengthen execution. Please turn to the next page, which explains unified promotion of corporate times wealth management solution. The value of corporate owners treasury stocks reached JPY 150 trillion and capital business backed by the age of great succession is expanding. Business and asset succession amount shown on the lower left, increased to JPY 1.2 trillion in FY '20 and cross transactions derived from it is also showing solid track record. Upper right shows our relation metrics with owner companies. For clients in the second quadrant, where our corporate relationship is strong, we will offer wealth management solutions, leveraging the corporate relationship. For clients in the first and third quadrant with weaker corporate relationship, we will aim to utilize wealth management approach in BK, TB and MUMSS and activate owner-driven transactions. Please look at the lower right chart. We are strengthening our promotion structure as a foundation of these activities in BK,TB and MUMSS. Our wealth management business reaches corporate solution so we encourage the management in each branch to execute it, hands on and our strengthening various structures, including the front organization. Please turn to the next page. The foundation of these businesses is supported by digital platform developed with the know-how of Morgan Stanley, which will be fully deployed throughout the group from FY '22. We will promote the business model that I explained earlier through an effective and efficient group-wide approach to our customers. A trial is underway in several branches in BK, TB and MUMSS network. And we see good traction with positive feedback from our customers and our people in charge. Please look at the right side. Cost reduction that we have pursued strenuously will be executed further toward FY '23. We will optimize the entire channel through operational efficiency and sophistication of online channel and optimize our personnel by streamlining our head office organization in order to reduce our costs by over JPY 30 billion on a gross basis. That concludes my explanation. Thank you very much for your attention.

Hello. I am Masakazu Osawa, Head of the Digital Service Business Group. Thank you for viewing the presentation. This business group was created by carving out from the former retail and commercial banking business group, the mass retail and mass corporate segments that do not have assigned account representatives and integrated them with the digital planning division that is driving our digital transformation. It is a new business group. In the past, the digital transformation promotion function of MUFG resided in the corporate center, which is independent from business groups. But in order to thoroughly change the business model of the mass segment, we made a deliberate decision to merge it with the business group. It will also support the digital transformation of other business groups as well. So it is an L-shaped organization, as can be seen in the lower right-hand corner. In our business group, our purpose is to eliminate customers' concerns about money. Our aim is to become a financial digital platformer that customers can always depend on as a financial services expert. As more and more nonfinancial players are entering into financial services, we must ask ourselves what our customers truly want from our services. We will leverage our strengths of the comprehensive capabilities of the group and our customer base to steadily deliver digital services that are appreciated by our customers. Our key strategies in the medium-term business plan are to promote a digital shift of operations and to reform the digital channel business model. Our financial targets are to increase our net operating profits by JPY 30 billion and to improve our ROE by 2 percentage points in fiscal 2023 compared to fiscal 2020. In working to achieve these targets, in addition to increases in gross profit from consumer finance business expected, as consumption recovers from COVID-19, we believe we need steady cost reductions through a digital shift. The first key pillar of our strategy is the promotion of a digital shift of operations. A lot of progress has been made in the digital shift at our branches. More than 40% of procedures for account opening and change of address are already conducted online, and this percentage is growing by the year. While the number of customers coming to our branches is declining sharply, the number of users of our internet banking direct service has doubled over the past 5 years. And online fund transfer transactions have also grown twofold. As a result, the number of over-the-counter transactions at our branches has been halved over the past 5 years, offering us a chance to drastically review our channel network. In the medium-term business plan, we are promoting further paperless operations and at our branches, our vision is that customers won't have to bring anything with them nor fill out paper forms or wait. We will reduce customers waiting time by taking reservations, shorten processing time by completing all the procedures on the tablet and will digitalize payments of taxes and other bills. Although not listed in this material at our operation centers in Tokyo, Osaka and Nagoya, various procedures are now being automated to steadily reduce the workload. As a result of these efforts, the financial impact of this channel review will be about JPY 30 billion, far larger than the JPY 17 billion achieved in the previous medium-term business plan. The second pillar of our strategy is reforming the digital channel business model. As can be seen in the lower left of the page, in order to offer new financial services fit for the new normal, we will enhance the competitiveness of our products and services through internal collaboration within MUFG. And with functions supplemented by advanced banking service companies and joint ventures that are unique to us, we will enhance the confidence of our digital banking. As for our customer contact points in the mass domain, we will not be simply limited to MUFG specific channels, such as internet banking and our household finances app, Mable, rather, we will actively collaborate with outside operators who have wide customer points of contact to broaden our base. While acquiring access to the customer base and nonfinancial data held by these outside operators, the financial service function will be delivered by MUFG. This so-called banking as a service model, or BaaS, is a win-win model as it would rejuvenate the business of these outside operators as well. In our joint venture with Recruit, which was established last fall, we aimed to offer our payment platform where the merchants themselves will be able to manage and use customer data. In our alliance with NTT DOCOMO agreed to in May of this year, by using financial and nonfinancial data, we will jointly develop new digital account service that would not have been possible with either set of data alone. In our alliance with Money Forward, which we announced in June, with a view to the introduction of the invoice legislation expected in fiscal 2023, we will take on a new challenge of making a breakthrough into the world of inefficient indirect finance. We will be carving out a new world where MUFG's financial services will be offered through a banking-as-a-service model to outside operators with a strong presence in various business domains. In developing new financial services, upgrading of data marketing methods is a must. We will be pursuing a data infrastructure operation that can efficiently and effectively analyze huge volumes of data at high speeds, both for MUFG proprietary data as well as for data fused with outside operators. As can be seen in the lower right, the number of online transactions for our products and services is growing every year through the development of high value-added digital services. We will restore our loan outstanding balance within the medium-term business plan, which had weakened during the pandemic. Let me now talk about the other mission of this business group, which is supporting digital transformation of the entire company. The open innovation effort to strengthen the financial services of MUFG, by utilizing external expertise and technologies, has made significant progress. Development of start-ups through the accelerator program has reached more than 30 companies in the last 5 years. We have invested in more than 40 companies totaling more than JPY 120 billion. Such open innovation investments are being made, mainly through our corporate venture capital, MUFG Innovation Partners or MUIP since 2019. As can be seen in the upper right-hand corner, the investments are broad, both in terms of country and category, which is one of the strengths of the company. In terms of collaboration with investee companies, already more than 10 products and services of MUFG have incorporated new technologies and solutions. Currently, the valuation of these investments is more than double the book value. And there's already a cycle being created, where proceeds from these investments will be used for new innovation programs. At other companies driving digital transformation other than MUIP, professionals in respective fields have been appointed as CEO to create new financial services. Lastly, let me talk about the business model reforms promoted at each business group and internal control divisions in creating new businesses through Mars Growth Capital and joint venture with Money Forward in lines 1 and 2. We will create new lending opportunities in Japan and abroad through the use of alternative data, and we expect growth to about JPY 20 billion to JPY 30 billion in fiscal 2023. Line 3, in our joint venture with Akamai, the GO-NET business, payment network service for credit cards started from April. Service for vending machines started from this month and use cases will continue to be built up. Line 4, program aiming for a full rollout of a digital securitization market. The first case of issuance is scheduled for the first half of this year. We are aiming to have accumulated interested balance of JPY 100 billion during the medium-term period. The data Trust Bank, Dprime, has started its full rollout on the first of this month. It is receiving inquiries from several hundred corporates wishing to use data. We're realizing the strength of its demand. We have appointed Mr. Hidetoshi Nakata, as a brand ambassador to appeal to individual customers, who will be offering their data on the benefits of the service. We're currently aiming at more than 1 million downloads. In operations efficiency, line 6 and below, through digitalization of paper documents, we aim to reduce 200 million pages. Through corporate center digitalization, we aim to reduce the workload by more than 2,000 full-time equivalents. Currently, steady progress is being made. In utilization of AI, we will expand its application to all business groups to further enhance productivity improvement. Also, although not mentioned here, we will promote operational efficiency through slimming down our credit screening and corporate center organizations. We'll be making a contribution to the firm-wide structural reform benefits of JPY 100 billion, centering around cost reductions set in the medium-term business plan. That is all for me. Thank you for the attention.

I am Hayashi, Head of Japanese Corporate and Investment Banking Business Group. Let me share with you the review of the previous medium-term business plan, MTBP, and the key strategies under the new MTBP. Please turn to Page 17. Our results for FY '20 are shown on the upper left. Net operating profits increased by JPY 20.2 billion during the previous MTBP. The main factors are shown in the step chart on the lower left. First, lending interest income increased by JPY 43.6 billion, yen lending spread hit the bottom and non-Japanese yen lending spread also improved. In addition, yen loan balance increased by JPY 4.4 trillion vis-a-vis FY '17 due to the finance needs from COVID-19. Trust income and securities income increased by JPY 9.7 billion and JPY 7.2 billion, respectively. On the other hand, deposit interest income decreased by JPY 16.5 billion, as non-Japanese yen was impacted by the U.S. interest rate decline. In addition, noninterest income, including foreign exchange, decreased by JPY 26.4 billion as our customers' activities stagnated due to COVID-19. Net operating profits of our business group grew steadily until FY '19, but it decelerated in the final year of the MTBP due to the significant impact of COVID-19. ROE was 8%, down by 2 percentage points vis-a-vis FY '17 due to credit costs from large borrower in the final year. Achievements and challenges in the previous MTBP are shown on the upper right. Our achievements include further integrated management of the bank, the Trust Bank and in MUMSS with the establishment of RM-PO model and effective control of non-Japanese yen balance sheet. We also overachieved the reduction target of our equity holdings. Our challenges are threefold, which I will explain later with our strategy. Regarding business environment on the lower right, the societal challenges that had already emerged accelerated with COVID-19. Customers management issues are becoming ever more complex and the time line to take action is becoming shorter. On the other hand, customers' expectation for us is not necessarily high. We will rebuild our large corporate business model and change the way we take risks to enhance our capability to respond to our customers' new management issues. Please turn to Page 18, which shows the overview of the new MTBP. Our 2 visions under the new MTBP are shown on the upper left. Grow together with the customers by sharing business risk and realize staircase management steady growth year-on-year, as we move up the stairs towards the MTBP 3 years from now. Key strategies and our thoughts to realize this is threefold: one, establish a sustainable business model focusing on ROE; two, strengthen our risk-taking capabilities to meet new needs of customers and three, strengthen our ability to respond to new areas. Please look at the financial targets for the new MTBP on the right. Japan CIB business group's ROE target for fiscal year '23 is 9%. The road map to realize this ROE target is shown in the bottom right step chart. It is crucial to grow steadily as we move up the stairs from year 1 in order to achieve our targets 3 years from now. Our operation does not assume no growth or flat results in year 1 and 2 and reach the target in one go in the final year. I call this staircase management, on which I place the highest priority. We will utilize our precious RWA effectively in the new MTBP, accumulate net operating profits every year and achieve our ROE target in the final year. On Page 17, I explained that our ROE in FY '20 was 8%, but here, it says 5% on the bottom right. This difference comes from the change in the allocation of RWA of equity holdings from the corporate center to each business group and the change in the RWA calculation method to the finalized Basel III reform spaces as explained in asset risk 3 of the footnote. We decided to manage our business group squarely starting from the most difficult position. KPIs for the new MTBP is shown on the lower left. In lending spread, Japanese yen lending turnaround in the second half of FY '20, and this improvement trend continues for both Japanese yen and non-Japanese yen this year. We will control RWA appropriately and work to improve our lending spread. Please turn to Page 19, which explains our key strategies and ideas behind. First is establishing a sustainable business model focused on ROE. We will build a business that we can grow solidly year-on-year despite low interest rate and tighter Basel regulation. Please look at the left side. We will increase gross profit, reduce costs and operate RWA efficiently to achieve our ROE target mentioned earlier. To achieve the ROE target, it is essential to establish a structure where each RM constantly focus on RORA as opposed to gross profit. So first, we integrated the ROE metrics of financial and management accounting and frontline performance evaluation and fundamentally upgraded our performance evaluation system in order to articulate what actions by RMs lead to ROE improvement. As mentioned earlier, our business group received all the RWA allocation that was shelved in corporate center and also took in as much cost as possible. Furthermore, we also started reflecting the capital costs and customer profitability. Next, we built a theme where we plot and visualize the profitability of transaction by customer measured this way in the matrix to improve ROE. More specifically, the matrix consists of the level of RORA and the amount of RWA used as shown on the upper right. By reflecting the capital cost, we were able to identify many customer groups in quadrant 4 on the lower right with relatively low return despite large RWA injection. We will focus our improvement actions on these customers. Lower right chart shows the reduction of equity holdings. We already announced our plan in the full year financial results briefing in May to reduce our equity holdings by over JPY 300 billion in the next 3 years. However, given the social trends and investors criteria for the exercise of voting rights becoming more stringent regarding equity holdings, we think we need further reduction. We will deepen our dialogue with our customers and accelerate the reduction of our equity holdings. Please turn to Page 20. Our second key strategy is strengthening our risk-taking capabilities to meet new needs of customers. Business environment is changing dramatically and customer actions to restructure their business and asset portfolio are accelerating. To address customers' financing needs associated with this, we will proactively offer capital financing in addition to senior loan. We will enhance risk taking and provide group-based integrated solutions to develop new businesses and secure high return deals. In addition, we will leverage O&D function in MUFG and thoroughly pursue asset turnover business. Our recent track record includes LBO mezzanine loan and green hybrid bond underwriting, as shown on the lower left. Right side shows strengthening of our real estate business. Since we integrated corporate banking divisions of The Bank and the Trust Bank in April 2018, the collaboration between the frontline and product office deepened. Real estate revenue shows a linear growth and the integrated management between The Bank and the Trust Bank in large corporate sector has become a key strength for MUFG. In the new MTBP, we established a new planning and umbrella organization for real estate business to facilitate a cross-functional collaboration between The Bank and the Trust Bank as well as other affiliate companies in the group. Under this collaboration structure, we will offer solutions proactively, responds to customer sophisticated needs quickly and increase our engagement in highly profitable deals. Please turn to Page 21. Our last key strategy is strengthening our ability to respond to new areas. Our customers are taking on challenges to revisit their business portfolio and develop new businesses in order to address the changes in the industrial structure and environment and social issues. MUFG will also take on challenges for new investment type business by sharing business risks with our customers and growing together. As shown on the upper left, we are promoting organizational culture reform, including human resource development, active incorporation of external knowledge and business creation program. In business creation program, we received over 100 applications from members in Japan and abroad, and I myself listened to the presentations of all ideas. We will follow up on them thoroughly until the ideas materialize. In July of this year, Sustainable Business division was established in order to support our customers to realize carbon-neutral society and resolve social challenges. We will engage with our customers and aim to create sustainable business by realizing policies and systems through public-private partnerships and by promoting corporate partnerships. Right side shows our efforts on climate change. The engagement we started with our customers in key industries from sustainable business division and project teams and corporate banking division is leading to various activities. We will expand the target industries going forward, continue constructive dialogue with our customers and offer effective solutions. Let me share with you some concrete examples. We recently became the lead underwriter for the issuance of transition bond by a major shipping company, which was the first in Japan and first in the shipping industry. This deal was the first transition finance model project to be certified by METI. We also structured debt finance for hydrogen fuel station operator in California as the first MUFG's financing that specializes in hydrogen-related business. We will accumulate such leading-edge initiatives, enhance our engagements with our customers and contribute to the realization of a sustainable society from the financial side. That concludes my explanation. Thank you very much for your attention.

I am Takayoshi Futae, Head of the Global Commercial Banking Business Group. I will talk about the current status of our business group and our strategy in this medium-term business plan. Please look at the next slide. Fiscal 2020 results. Net operating profit was JPY 275.6 billion. Although we didn't quite hit the initial plan, it was higher by about JPY 100 billion over fiscal 2017. The final year of the previous medium-term business plan, the expense ratio was 65%, showing progress in efficiency. On the other hand, the change in the accounting standard and the COVID-19 impact led to higher credit costs and the ROE was 1%, which was down 5 percentage points from fiscal 2017. During our previous business plan, Bank Danamon became our consolidated subsidiary, completing our partner bank network in ASEAN. Krungsri showed steady growth and rose to third place in Thailand based on net profit. On the other hand, challenges we have identified include restructuring MUFG Union Bank, supporting Danamon for further growth and providing solutions that leverage the completed ASEAN partner bank network. Interest rates remain low in respective countries. New car sales have declined in Indonesia due to the impact of COVID-19, but the U.S. economy is recovering. And with progress in vaccination expected in respective countries, we will aim at steady growth towards fiscal 2023. In this medium-term business plan, our vision is to empower a brighter future for customers in ASEAN. We will focus on supporting the autonomous growth of Bank Danamon restructuring MUFG Union Bank and strategies that cover the entire ASEAN operations. The financial targets for the final year of this business plan are net operating profit of JPY 290 billion, expense ratio of 64% and ROE of 6%. Net operating profit is expected to decline in fiscal 2021 due to market conditions, but with the growth of partner banks, we expect a profit growth of JPY 70 billion by fiscal 2023. With credit costs down by about JPY 100 billion compared to fiscal 2020, we plan to achieve our ROE target. Next, MUFG Union Bank, fiscal 2020 results. We had bond underwriting and syndication fee increases plus gains from bond sales. But because of prepayments of mortgages due to lower interest rates, our gross profit was JPY 559.3 billion, down JPY 3.8 billion year-on-year. We are working to reduce our expenses, but due to increases in regulatory costs and IT systems-related expenses, excluding goodwill amortization, our net operating profit was at JPY 125.3 billion, down JPY 9.5 billion year-on-year. Also, introduction of the new accounting standard and the COVID-19 impact significantly increased our credit costs and our pretax net profit, excluding goodwill amortization, was JPY 37.9 billion, down JPY 73.8 billion year-on-year. Our new CEO, Kevin Cronin, is currently working on the 100-day plan. Prior to joining MUFG, he assumed important responsibilities in large corporate business at Bank of America. And at MUFG, he headed our Global Corporate and Investment Banking operations in the Americas over many years. He will leverage that experience to enhance our SME business at a reduced costs. In regional banking, we're making progress in the back to basic strategy we introduced last year. We are starting to see results in SME business, our focus area. We're seeing loan growth and improvement in customer satisfaction. We are also achieving lower funding costs through increases in low-cost deposits. Also, we are making steady progress in the consolidation of branches as part of our rationalization initiative. There are still ongoing challenges, including the mortgage prepayments continuing from last year as well as higher regulatory costs. But under the new leader, we will complete the turnaround as soon as possible to be able to contribute to the MUFG's results. Next, I will discuss Krungsri of Thailand. In spite of the downturn in Thailand's economy in fiscal 2020, thanks to higher gross profit and cost reductions in areas such as personnel and advertising, net operating profit was up JPY 13.4 billion year-on-year. On the other hand, introduction of the new accounting standard and the COVID impact significantly increased credit costs and the net profit was down JPY 12.5 billion year-on-year at JPY 79.2 billion. But as you can see in the graph in the bottom left corner, Krungsri rose to third place in net profits among domestic banks in Thailand for the first time. With gains expected from a planned IPO of an affiliated company, we expect solid results for fiscal 2021 as well. Also, while NPL ratios appears -- have been rising over the past 5 years, Krungsri has maintained a low NPL ratio and continues to manage an appropriate risk return profile. It is retail consumer finance that supported this growth. As you can see in the pie chart at top right, we have achieved an increase in gross profit of JPY 121.7 billion since 2015, when the Bank was merged with our former [bank of branch] leveraging the relationship that MUFG has with automakers auto loan business posted phenomenal growth, and Krungsri became #1 in Thailand in auto loans, along with personal loans and credit cards. Krungsri has also concluded many deals in collaboration with MUFG including cross-border M&A finance deals and supporting the first government issued ESG bond in ASEAN. Next, I will discuss Bank Danamon of Indonesia, fiscal 2020 results. With a drop in auto sales due to COVID-19, auto loans declined and gross profit was down, but through expense reductions, mainly in personnel costs, net operating profit was up 4.5 billion year-on-year. On the other hand, with the increase in credit costs by JPY 18.2 billion year-on-year, net profit fell sharply to JPY 7.4 billion. Collaboration with MUFG has progressed steadily since it became a consolidated subsidiary. It has concluded many deals, including dealer finance, housing loans and [SME] finance leveraging the capabilities of Danamon. In this medium-term business plan, we will build a new collaboration framework, which links Bank Danamon with MUFG banks, Jakarta branch, and pursue further collaboration as a team. Also, we will make further efforts to strengthen consumer finance. We have assigned Dan Harsono, former Head of Retail Consumer Finance at Krungsri, who led Krungsri's growth to the MUFG adviser and Commissioner of Bank Danamon to accelerate the transfer of expertise from Krungsri. The first step will be to strengthen housing loans and auto loans, both are areas where we have had success at Krungsri. We will make full use of Dan's knowledge, experience and contacts to capitalize growth at Danamon. Next, our collaboration with Grab. In our collaboration with Grab, we are working to provide new digital financial services. Last year, we began to offer micro loans in Thailand to drivers and food merchants, a cumulative total of about 100,000 loans have been made. And we are planning to offer loan products to Grab's users as well. We will also pursue the launch of collaborative products with other partner banks as well. In this medium-term business plan, we will pursue further collaboration with Grab to acquire unbanked customers in ASEAN, facilitate transaction lending and accelerate digitalization at our partner banks. Lastly, I will talk about our outlook on credit costs. Our credit costs increased significantly in fiscal 2020, but we anticipate major declines in fiscal 2021 onward at all partner banks. At MUAH, thanks to the economic recovery helped by the fiscal stimulus and the vaccine rollout, credit costs fell substantially in the first quarter of fiscal 2021, down JPY 71.4 billion year-on-year. As can be seen in the table on the right-hand side. While charge-off rates have been low in past economic downturns, we have set aside ample loan loss reserves, and we expect credit costs to come down sharply this fiscal year. Krungsri is also making solid progress in normalizing and collecting on its rescheduled debts. And credit costs for the first quarter of this year declined by JPY 7.8 billion year-on-year. The Bank has kept its NPL ratio at a low level over the past 5 years, proving conservative management. Bank Danamon is also making progress in normalizing and collecting on its rescheduled debts, the majority of which being auto loans. Its credit costs in the first quarter of fiscal 2021 were down JPY 9.2 billion from the fourth quarter of fiscal 2020 and is expected to continue to decline through fiscal 2021. While we must continue to be vigilant as COVID-19 cases and vaccine rollouts are uneven across countries, we will work on our initiatives with the main emphasis on restructuring Union Bank and supporting growth of Bank Danamon with the goal of empowering a brighter future for our customers in ASEAN. Thank you for your attention.

I am Miyachi, Head of Global Corporate and Investment Banking Business Group. Let me explain the medium-term business plan, MTBP of Global CIB Business Group. First is the review of the previous MTBP. Last fiscal year, which was the final year of the previous MTBP, net operating profits increased slightly and ROE was 5%, down by 2 percentage points vis-a-vis FY '17, as we faced unexpected changes in the business environment, including the spread of COVID-19. While we had a certain level of achievement in our balance sheet optimization, including the improvement in loan NIM and non-Japanese yen loan-to-deposit gap, challenges remained in expanding fee income under disciplined RWA control and optimizing our business structure under sluggish gross profit as a result of a fundamental review of our RWA plan. We are advancing and sophisticating our business strategies by being attentive to not only these achievements and challenges, but also the business environment including continued low interest rate environment, changes in the corporate activities post-COVID and heightened interest in ESG. In the new MTBP, we aim to develop a sustainable business model delivering satisfactory portfolio returns in a dynamic business environment and become a global financial partner of clients with world-class expertise and capabilities. Our financial targets will focus on quality and ROE target is positioned as the highest priority. Our key strategies to achieve this target is GCIB and Global Markets. In other words, enhancing our product offering capability by advancing the integrated management with Global Markets Business Group and upgrading a sustainable business management foundation to support that. Expansion of fee income remained the key to our profitability improvement. We need to acquire O&D and cross-sell transaction by further leveraging our balance sheet so we will share KPIs, such as ROE and noninterest income ratio with Global Markets Business Group in order to promote product neutral business management. We also understand that enhanced transaction with institutional investors is the key and set institutional investor portfolio ratio target to optimize our business portfolio. Approximately half of the improvement in ROE from 3% to 7% comes from leveling off of the onetime increase in credit costs last year. And the remaining half will be realized from the expansion of interest and noninterest income, cost reduction and RWA control . Next, let me explain the direction of our key strategies. The bar graph on the left shows the revenue plan, which serves as the underlying assumption for GCIB and Global Markets integrated ROE target. One and two at the top are categorized as balance sheet-related income that uses assets. And three and below are categorized as non-balance sheet income, including cross-sell, in other words, noninterest fee income. Expected CAGR of balance sheet-related income is 5.1% through NIM improvement, while we plan to fully leverage balance sheet usage and expand our nonbalance sheet income by CAGR of 5.8%. One of the important themes to realize this is the enhancement of institutional investor business. The main institutional investor targets here are asset management companies and financial sponsors. Investment money around the world is flowing into these companies as monetary easing and low interest rate environment continues, which makes it important for us to offer services to address the expanding money flow. We identified approximately 120 target clients and will offer solutions on one MUFG basis, namely GCIB, Global Markets and AM/IS. There are three focuses in this transaction. First is strengthening of secured finances by taking the investment portfolio of these company's funds as collateral, which enables us to secure higher loan NIM than that of the conventional unsecured loans for corporate clients. Next is strengthening of flow products cross-sell such as exchange, bond and derivative transactions based on the relationship through this lending. And the last focus is origination and distribution of loan and bond for non-IG corporates, which are the investee portfolio companies. By capturing the money flow originating from institutional investors through a comprehensive approach, we will accumulate a trading portfolio with over 10% ROE. In addition to increasing high-return deals by expanding institutional investor portfolio ratio, we will continue and enhance our portfolio management based on the conventional four quadrant analysis for the existing portfolio. As I mentioned at the outset, portfolio optimization until now has led to a certain level of achievement, including NIM improvement. On the other hand, we need to continue recycling the low-return portfolio categorized in quadrants C and D in order to improve our profitability further. We will raise the return threshold of the low-return monitoring area, enhance origination management through disciplined deal screening and exit from low-return relationships in accordance with ROE target. The apparent average ROE declined from this MTBP, as RWA calculation method changed to finalized Basel III reforms basis. During the transitional period towards the application of the finalized basis in 2028, pricing threshold and asset preference may be different depending on the measurement method adopted by each bank, but MUFG's policy is to pursue proactive profitability management looking beyond 2028 through advanced application. In addition, development of investment banking business centered on our collaboration with Morgan Stanley as MUFG's unique strength is an important theme in IG space. We have so far created synergy in collaborative underwriting in large-scale event finance deals. Our wallet ranking dropped last year due to a lack of large-scale deals under COVID-19, but the business confidence is recovering centering on the U.S. and market recovery is expected. Our target is defending the top 10 position in IG wallet ranking, as we will pursue asset control, but we'll continue capturing deals based on our collaboration with Morgan Stanley. We will also develop further collaboration opportunities in institutional investor and non-IG area in alignment with our strategic direction. Morgan Stanley has strong market presence in ECM and M&A advisory business where market wallet expanded significantly last year. Equity accounted profit attributable to this area is not counted under GCIB on management accounting basis, but we consider that leveraging this professional function is the best option from management efficiency perspective in our alliance strategy with Morgan Stanley, and we'll continue capitalizing on the strength. In order to be successful with this business strategy, it is crucial that we optimize risk appetite focusing on risk return. As institutional investor business in particular requires even more sophisticated risk taking, we will enhance our risk management in line with our strategy. More specifically, we will develop account planning, share it with credit division and conduct deal screening aligned with individual business strategy. Marketable credit risk management on loans and collateral are important from credit monitoring viewpoint, so we will enhance our organization, talent and MIS. As a new challenge to higher risk return, we will expand Mars Growth Capital, digital tech-driven financing for startups. Deals are increasing steadily so we will consider expanding our capital commitment going forward. Next is our sustainability initiatives. In addition to our traditional strength, including renewable energy finance, we will exert our financial intermediary function, focusing on O&D and OtoD such as ESG, bond origination and distribution to investors and contribute to achieving MUFG's sustainable finance target of JPY 35 trillion. In decarbonization initiatives, on the other hand, we will work to enhance credit exposure management of related sectors and correctly understand the direction of transition in each country and support the business transition of our business partners. The last point is expense control. Direct expense, which our business group can control directly, will be managed flexibly with a focus on operating leverage. In other words, the progress of gross profit against the plan. We will also optimize HR allocation aligned with the business strategy and portfolio to improve our earning capability. On the other hand, the reduction of indirect expense, which accounts for over 60% of our business group's total expense is an urgent task. The cost is expected to decrease as overseas regulatory costs peak out, but that is not enough so we will achieve further reduction by reshaping our business platform in collaboration with corporate center. That is global CIB's key strategies under the new MTBP. It is no easy task to achieve the ROE target for FY '23, but 7% level is by no means satisfactory. We will continue transforming ourselves to achieve this target by executing our strategies and demonstrate that further profitability improvement can be expected going forward. Thank you very much for your attention.

I am Shigeru Yoshifuji, Head of the Global Markets Business Group. I will review the previous medium-term business plan and then discuss the overview of the new medium-term business plan. In fiscal 2020, because of the reshuffling of the portfolio, the target was not achieved, but our institutional investor business posted steady growth. And our net operating profit was up JPY 11.7 billion over fiscal 2017 at JPY 377.4 billion. On the other hand, with the impact of COVID-19 and the associated growth in the risk amount, leading to a onetime increase in economic capital, ROE was down two points compared to fiscal 2017 at 5%. Next, achievements and challenges of the previous medium-term business plan. In sales and trading, institutional investors business expanded through collaboration among the three business groups, namely Global Markets, Asset Management Investor Services and GCIB. In the corporate business, we had certain progress in the enhancement of our GCIB collaboration approach. On the other hand, there is further room for growth in the institutional investor business including optimization of risk appetite and enhancement of products. We also need further structural reform in the corporate business. In the treasury business, we diversified our non-yen funding and established a group governance system to strengthen our group treasury operations. On the other hand, with a global low interest rate environment and continued compression of the spread between long and short-term interest rates, we need to deal with further expansion of excess deposits over loans and enhance profitability of the balance sheet. In addition, the trend of digitalization in the Global Markets operations is accelerating further. The change in the environment in Japan and abroad is dramatic. And in order to maintain sustainability of the business, we need to work on innovation in both the new and existing domains of business. Based on such an awareness of the challenges and given our strength, namely our ability to offer solutions, risk controls and strong products, we decided on the slogan of the Global Markets Business Group to drive growth and transformation. Our vision in 3 years' time is to steadily grow our earning power and to challenge ourselves to change daringly to be an organization to continue to contribute to sustain the growth of our customers as well as MUFG. In sales and trading, we will strengthen our business in the Japanese market and through integrated operation with GCIB, we will aim to grow steadily by providing solutions to corporates and institutional investors, both in Japan and abroad. In treasury, we will leverage the expertise held at the commercial bank and the Trust Bank and will aim to balance soundness and profitability. While the commercial bank and the Trust Bank will both maintain their respective styles of operation, by enhancing investment diversification at the whole of MUFG level, we will boost our net interest income. As uncertainties arise, we will pay due attention to both market risk and liquidity risk and elevate the level of sophistication of our treasury operations. Furthermore, to secure new sources of revenue and to strengthen our competitiveness as a financial group, we will start our new investment business, which will carry out long-term diversified investing. In promoting such business, the main KPI will include GCIB Global Markets combined ROE and KPIs for the new investment business. Also, through a full digital shift with e-business times innovation, including upgrading of ESX and development of business tools that utilize AI. And through our ESG/SDGs program with ESG-related product development and investment, we will forcefully drive growth and transformation. Next, please look at the right hand of the slide. In fiscal 2023, our target ROE for the whole of the Global Markets Business Group is 8% in sales and trading. Although shrinkage of the market wallet is expected compared to 2020, we will make it up by implementing various initiatives to realize steady growth in the next 3-year period. In Treasury, decline in net interest income and deterioration in the unrealized gains and losses in a highly uncertain environment will be offset by enhanced investment diversification at the group level and balance sheet and ALM management that pursues soundness and profitability so as to make stable financial contributions. On expenses, although there are increases in overhead and onetime expenses, we will work to contain the direct expenses that we can control compared to 2020 to improve the expense ratio. Through CBA control upgrades, we will refine and reduce our economic capital in the existing business domain and reallocate it to growth investment, including a new investment business and to more profitable transactions to aim at improving efficiency of our resources and capital. In the following slides, I will talk about the initiatives of our key strategies. First, strengthening of the sales and trading business. By implementing various initiatives, we will grow profits in each product domain, such as rates, credit, foreign exchange and structured solutions and raise our ROE to 11% in fiscal 2023. In foreign exchange in Japan, through integrated operations with customer business group and expansion of direct deal customers, we will increase the number of transactions led by product officers to provide high value-added products to our customers and increase volume and profitability. With a higher need for foreign exchange outsourcing at asset management companies, in addition to the flow-type foreign exchange business that is highly competitive, we will capture contract-based foreign exchange business with automated execution of foreign exchange transactions leveraging the investor services business and the high administrative capabilities of the Trust Bank to expand the stable stock-based foreign exchange business. In structured solutions, we will enhance the bank securities dual-head organization. And through sharing of solutions expertise, we will develop a solution business on MUFG group basis and strengthen sourcing channels and distribution functions of finance transactions. Next slide. Through integrated management with GCIB, we will optimize our risk appetite and enhance collaboration on a global basis. And by enhancing our product lineup, both in Japan and abroad, we will maximize the impact of the initiative, both for the export of yen products as well as imports of non-yen products and enhance cross-sell in the institutional investor business on a global basis. Also, we will allocate people to offices in Asia with higher growth potential and enhanced coordination with the office in Japan to strengthen our Asian business with Japanese corporates. Please look at the right-hand side of the slide. The EFX that was developed in the previous medium-term covers a wide range of customers from corporates in Japan and abroad to institutional investors. The penetration of remote work is accelerating the digitalization of the foreign exchange business and the customers' need for electronic trading is increasing. In the current medium-term business plan, we will continue to make IT systems investment that meets the needs of customers and our salespeople. We will fully demonstrate our strength of in-house development to further differentiate ourselves from our peers. We will also further raise the digitalization rates of customer business as well as internal operations to free up resources for provision of value-added solutions and will develop functions to maintain stable business operations in the COVID-19 environment. In the next slide, I will talk about the upgrading of treasury operations. In addition to treasury operations at the commercial bank and the Trust Bank, with the newly added new investment business, these three operations will leverage their strength to make stable financial contributions. We will work actively on ESG investing as well. In treasury operations, the bank will manage flexibly the balance between the interest rate risk of the balance sheet and the equity risk, including the equity holdings to generate stable financial profit and control unrealized gains and losses. At the Trust Bank, through diversified investment with a mid- to long-term perspective between rates, equity and credit on a global basis, we will aim to generate stable net interest income. In balance sheet management for the yen-based balance sheet to deal with increasing excess deposits, by working with customer groups, we will enhance our efforts to promote a shift from savings to investment and to expand investments in securities. In the non-yen balance sheet, while controlling liquidity risk, we will try to improve profitability by reducing market funding costs. Through these operations and programs to improve capital efficiency, we will improve the ROE of the treasury business to 7% in fiscal 2023 from 5% in fiscal 2020. In the last slide, I will talk about the new investment business. In the tough business environment with low interest rates around the globe and continued excess of deposits over loans, we will start long-term diversified investment with a view to securing new sources of revenue and enhancing our competitiveness as a financial group by diversifying thoroughly in terms of asset type, duration and price ranges. And with the policy of buy and hold plus rebalance, it will make a sustained and stable contribution to both financial profits and ROE improvements over the long term. It will be a holding company-based operation and in investing in diverse products, we will build a framework to fully leverage the expertise and know-how held at the commercial bank and the Trust Bank. In addition to traditional assets such as government bonds and equities, alternatives and credit assets with different risk and return characteristics will be included in the investment portfolio for higher ROE over the long term. We will also work actively on sustainability investing by conducting ESG investing after considering the balance between social responsibility and the risk return profile. We will aim to improve the corporate value of MUFG. Through the key strategies I have discussed, we will grow solidly our earning power and by challenging ourselves to change daringly new areas such as digital and ESG/SDGs will make a contribution to the sustained growth of our customers and MUFG and achieve an ROE of 8% for the business group. That concludes my presentation.

I am Takayuki Yasuda, Head of Asset Management and Investor Services Business Group. Let me share with you the review of the previous medium-term business plan, MTBP, in our business group, the overview of the new MTBP and our initiatives in global AM/IS strategy and responsible investment, which are expected to be the growth drivers. First is the review of the previous MTBP. Our self-evaluation of 3 years is that we felt a good traction of solid progress every year against our MTBP financial plan and business volume target. This is our results. Net operating profit in FY '20 was JPY 84.1 billion, up by JPY 13.1 billion vis-a-vis FY '17. We achieved our MTBP target as negative impacts compared with FY '17, including lower AMP ratio and increase in expenses for strategic investment were offset by the acquisition of FSI and increase in the sales of investment products to domestic corporates in AM business as well as increase in comprehensive income by offering bundled services in Japan and abroad in IS business. Upper right shows our achievements and challenges. The overall achievements were mentioned earlier but expense ratio was 72%, which is 10 percentage points higher than FY '17. So the reduction of expense ratio driven by the expansion of global AM/IS business is our challenge in the new MTBP. In AM business, we completed the acquisition of FSI and increased the sales of investment products to domestic corporates through flexible and agile product offering. We will enhance FSI's investment capabilities and expand our alternative products in order to grow further. In IS business, we expanded our business foundation steadily through bundled offering of fund administration services, along with fund finance and exchange transactions by capturing customers' needs. The expansion of cross-sell through institutional investors business, which is a cross-functional initiative of the business group also contributed to the profit growth. We will continue focusing on strengthening and enhancing services that cater to our customers' needs. In pension business, we are acquiring new business opportunities through consulting services that integrate pension scheme and investment and will enhance our capabilities of investment sales further by establishing specialized team. Lower right shows our business environment. We expect the same environment to continue in the new MTBP term in AM/IS and pension. Next is the outline of the new MTBP. The basic policy is shown on the upper left. AM/IS business is a stock business where we received AUM-based fees from customers. AUM is based on our contribution to solving issues of the customers and society. And the accumulation of trust leads to the sustainable growth of the business. Therefore, we aim to demonstrate high degree of expertise as fiduciary so that we can continue being the global AM and IS player of choice. Global AM/IS and responsible investment initiatives that have recently drawn attention are the key strategies in the new MTBP. I will explain the details later. Upper right shows our financial targets. Net operating profit is JPY 100 billion, up by JPY 25 billion vis-a-vis FY '20 and global AM/IS, our growth driver, accounts for approximately 70% of the JPY 25 billion increase. Expense ratio target is 69%, down by 3 percentage points vis-a-vis FY '20 by utilizing the platform developed in the previous MTBP and through the business expansion with the strategy, I will explain from the next page. As a result, ROE target is 28%, up by 3 percentage points from FY '20. Next, let me explain our strategy on global AM business. This business domain centers around FSI, which we acquired in the previous MTBP. FSI has long led the industry in the area of responsible investment so we will fully leverage their experience, encourage the retention and development of specialized human resources and teams with strong expertise, which is the basis of AM business, and constantly generate benefit for our customers, employees, society and our shareholders. Regarding the business environment, asset management needs is expected to grow centered on alternatives that has high growth potential backed by the low interest rate environment and heightened interest in ESG. On the other hand, negative impacts, including tighter regulations in each country and downward pressure on AM fees are also anticipated. Under such circumstances, FSI will accelerate AUM increase by investing its resources, mainly in infrastructure investment, which is the growth area and strengthen its investment capabilities. Gross profit of infrastructure investment is expected to grow by 21%, which is higher than the annual industry average of 4%. Based on the business environment mentioned earlier, we will utilize seed investments, develop new products that meet customers' needs in the medium- to long-term perspective and achieve sustainable growth. Lower right shows on actual case of infrastructure fund, which is FSI's strong suit. It leveraged the skills and knowledge of the investment team, promoted added value improvement from a long-term perspective and sold in 2021. FSI received a part of gain on investments as performance fee. It was a result of exerting its years of knowledge on infrastructure investment and high level of expertise without losing sight of the long-term view. We will continue striving to deliver constant benefit. Next is our strategy on global IS business. We will capture our customers' needs comprehensively, strengthen high value-added services, including fund finance, lending and FX and offer bundled services with fund administration under MUFG IS brand and aim to become a global comprehensive service provider. Regarding the business environment, continued high growth rate of alternatives and further oligopoly by major players are expected. In addition, needs for flexible global and one-stop service is expected to continue, backed by tighter regulation on AM industry. Against such backdrop, we will focus on strengthening high value-added services and offering bundled services as shown on the upper right. In fund finance, we will expand product types and increase lending limits by enhancing risk management. In security lending, we will not only promote our own custody asset but also other companies' custody asset and strengthen our profitability by capturing profit opportunities through infrastructure improvement, including our internal systems. In fund FX, we will offer flexible reporting according to client needs and fully automate hedge transactions for designated schemes. Gross profits, CAGR from this service utilizing these banking functions is planned at 17% during the current MTBP. In addition, we planned for another 7% growth in gross profit in IS, including fund administration and custody from synergy effect with such services, which outpaced the industry growth. As a concrete example of bundled service, Company A that had mainly focused on traditional asset management, such as equity and bond, considered to invest in alternative funds for the first time, and we offered various bundled services of MUFG IS from multiple locations from the fund examination phase and acquired the customers trust. The company expressed its intention to leave the next alternative investment in the hands of MUFG IS. So we can expect further growth of this business. The last key strategy is responsible investment. We will aim to become the front runner in responsible investment in the industry with the experience of FSI that has long led this area and MUFG management's commitment and by strengthening our investment process and dissemination capability to the world. Business environment is shown on the lower left. Europe had traditionally led the responsible investment, but now Japan and the U.S. under Suga and Biden administration are declaring the shift to decarbonization and following suit. Responsible investment, AUM, in Japan is still smaller than in Europe and the U.S. and have much room to grow. There is also a shift in focus in ESG from G, governance, to E, environment and the expectation for AM industry to achieve net 0 greenhouse gas emissions by 2050 is rising. Under such circumstances, we will strengthen our initiatives on decarbonization. In addition to our participation in various collaborative engagements so far, we will strengthen our practical processes and product development capabilities. More specifically, we are considering to participate in the AM industry's net 0 asset managers initiative and formulating specific policies related to climate changes and so on to strengthen our responsible investment process. We will also develop impact investment funds that we manage by ourselves. In addition, the key is the enhancement of dissemination capabilities. We established first sentier MUFG Sustainable Investment Institute in May 2021 in order to raise MUFG's presence in responsible investment and lead the industry. We will combine the expertise of MUFG FSI and external experts and disseminate information by issuing reports. That concludes my explanation on the review of the previous MTBP, overview of the new MTBP and our key strategies. Although we are faced with difficult environment with radical changes, we will strive to capture growth opportunities through flexible management in response to the environment in Japan and abroad. Thank you very much for your attention. [Statements in English on this transcript were spoken by an interpreter present on the live call.]