MUFG Report 2021 Integrated Report
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Committed to empowering a brighter future. MUFG Report 2021 Integrated Report Mitsubishi UFJ Financial Group MUFG’s Pursuit of Management Strategies Leadership and Financial Data / Introduction Value Creation and Performance Governance Corporate Data CONTENTS Introduction 03 MUFG Way 05 Message from the CEO 14 A Guide to Quickly Understanding Where MUFG Is Now MUFG’s Pursuit of Value Creation 15 MUFG’s History 17 The Seven Business Group Structure 19 MUFG’s Unique Strengths 21 Value Creation Process 23 Stakeholder Engagement In the coming era of centenarians, what will you do next? 25 Sustainability Management Focused on Addressing 10 Priority Issues Editorial Overview 27 Response to Opportunities and Risks To best explain our efforts to create sustained value to our investors and other stakeholders, we, Mitsubishi UFJ Financial Group, or MUFG, have Management Strategies and Performance compiled this integrated report, MUFG Report 2021, with reference to such guidelines as the framework provided by the International 29 Review of the Medium-Term Business Plan (MTBP) Integrated Reporting Council (IIRC)*1 as well as the Guidance for 31 Overview of the New Medium-Term Business Plan (MTBP) Collaborative Value Creation issued by the Ministry of Economy, Trade and Industry. As you move on to the next life stage, 35 Message from the CFO we, too, will move on to empower you. 43 Financial Review for Fiscal 2020 Further details on our financial status and sustainability initiatives are available on our website. In addition, our plans call for issuing the MUFG 47 Eleven-Year Summary of Major Financial Data Sustainability Report 2021, a publication detailing our response to 49 Financial and Non-Financial Highlights sustainability issues, in autumn 2021. 51 Business Group Performance *1 A private-sector foundation established in 2010 by companies, investors, accounting organizations and administrative agencies to develop an 53 Digital Service Business Group (DS) international framework for corporate reporting. Committed to empowering a brighter future. 55 Retail & Commercial Banking Business Group (R&C) 57 Japanese Corporate & Investment Banking Business Group (JCIB) Definitions of Specific Terms Used in This Report 59 Global Corporate & Investment Banking Business Group (GCIB) 61 Global Commercial Banking Business Group (GCB) MUFG/The Group: Mitsubishi UFJ Financial Group, Inc. and its subsidiaries and affiliates 63 Asset Management & Investor Services Business Group (AM/IS) The Bank: MUFG Bank, Ltd. 65 Global Markets Business Group The Trust Bank: Mitsubishi UFJ Trust and Banking Corporation The Securities: 67 Evolving into a Financial and Digital Platform Operator Mitsubishi UFJ Securities Holdings Co., Ltd. and its subsidiaries 69 Transform Our Corporate Culture NICOS: Mitsubishi UFJ NICOS Co., Ltd. MUAH: MUFG Americas Holdings Corporation 71 Human Resources Strategy Krungsri (KS): Bank of Ayudhya Public Company Limited 75 Sustainability Initiatives Bank Danamon (BDI): PT Bank Danamon Indonesia, Tbk. 6 7 Message from the Chief Sustainability Officer (CSuO) FSI: First Sentier Investors Holdings Pty Ltd DS: Digital Service Business Group 77 Climate Change Measures & Environmental Protection R&C: Retail & Commercial Banking Business Group 79 Climate Change Measures & Environmental Protection JCIB: Japanese Corporate & Investment Banking Business Group (Disclosure Based on TCFD Recommendations) GCIB: Global Corporate & Investment Banking Business Group GCB: Global Commercial Banking Business Group 83 Addressing Issues Society Is Now Confronting AM/IS: Asset Management & Investor Services Business Group 86 ESG-Related External Recognition and Participation in Global Markets: Global Markets Business Group Global Initiatives Leadership and Governance Disclaimer 87 Dialogue between Outside Directors and Institutional This report contains forward-looking statements with regard to the Investors expectations, forecasts, targets and plans of Mitsubishi UFJ Financial Group, Inc. and its subsidiaries and affiliates. These forward-looking A new Green Bond project, sharply focused on 89 Corporate Governance statements are based on information currently available to the Group and financing renewable energy and energy-saving 99 Risk Management are stated in this document on the basis of the outlook at the time that projects, is set to launch. this document was produced. In producing these forward-looking 103 Cyber Security statements, certain assumptions (premises) have been utilized that are 105 Compliance subjective and may prove to be incorrect. Should any underlying 107 Internal Audit assumption prove to be incorrect, actual results in the future may vary materially from some of the forward-looking statements in this 108 Initiatives for Practicing a Customer-Oriented Approach document. The Group has no obligation or intent to update any forward- looking statements contained in this document. In addition, information Financial Data / Corporate Data on companies and other entities outside the Group that is included in this document has been obtained from publicly available information and 109 Consolidated Financial Statements other sources. The accuracy and appropriateness of that information has 113 Performance Comparisons with Competitors not been verified by the Group and cannot be guaranteed. All figures contained in this report are calculated according to generally accepted We acted fast establish a medical fund worth a total 114 Company Overview accounting principles in Japan, unless otherwise noted. of ¥10.0 billion to facilitate the development of vaccines and remedies. 1 MUFG Report 2021 MUFG Report 2021 2 MUFG’s Pursuit of Management Strategies Leadership and Financial Data / Introduction Value Creation and Performance Governance Corporate Data Introduction MUFG Way MUFG has newly defined its Purpose while formulating To Empower All Our Stakeholders the MUFG Way (previously the Corporate Vision) in line with this Purpose. The MUFG Way is designed to provide guiding principles The challenges faced by our stakeholders will be the starting point for our strategic proposals and their execution. Through our for all our business activities and consists of our Purpose, Values and Vision. actions, we will help all of our stakeholders resolve challenges confronting them. To empower our To empower our To empower the To empower the To empower customers and communities and future employees of shareholders business partners society generations MUFG MUFG Way Across generations, We will make our We will help create a We will provide our We will live up to we will empower our society more resilient world in which employees with shareholder Purpose customers to achieve by upgrading the human society and opportunities for expectations by a quality of life that reliability and stability the natural personal growth and continuously Committed to empowering a brighter future. affirms who they are. of our functions environment can co- offer an environment enhancing our We will assist our and by pursuing exist in harmony. in which they can business sustainability customers in thriving innovation. direct their energies and corporate value. Values amid these rapidly We will contribute to into working with a 1. Integrity and Responsibility changing times and the digital shift sense of fulfillment. Values Purpose Vision 2. Professionalism and Teamwork achieving sustainable across society. 3. Challenge Ourselves to Grow growth. Vision Be the world’s most trusted financial group Reorganized Positioning of Business Strategies Based on Purpose Code of Conduct Code of Conduct To live up to our commitment to empowering a brighter future in line with our Purpose, over the next three years we will implement the business strategies presented below, leveraging our strengths to address the issues our stakeholders are facing. For the detail of our New Medium-Term Business Plan (MTBP), please also refer to pages 31–34. Purpose WHAT Our value Committed to empowering a brighter future. Digital services that proposition for Appealing investment are easy to use for the next 3 years products and Today, all of our stakeholders are striving to overcome challenges and everyone investment advice find a way to the next stage toward sustainable growth. Will and testament Recommending optimal HOW services, inheritances, products and services We at MUFG will make every effort to help realize these goals. Which of business succession our strengths to This will be our unchanging purpose now, and into the future. Advanced digital leverage Japan’s largest technology and A wide variety of Face-to-face and customer base online channels for abundant data opportunities for the next generation WHY financing: IPOs, M&As, etc. Values The reason for The solutions our company’s Cross-border capabilities to achieve existence Business foundations transactions and In addition to our unchanging primary value of Integrity and Responsibility, Sustainable finance a sustainable in Japan and Asia, overseas business environment and Committed to with a global reach expansion we also value Professionalism and Teamwork and will Challenge Ourselves to Grow. society empowering a brighter future. Transitioning to 100% A company with renewable energy Diversity of human Vision procurement a high level of resources on a global basis soundness and stability Stable provision of funds By empowering our stakeholders to find a way to the next stage toward sustainable growth, Next-generation support we will make every effort