A trust bank that provides services for individual and corporate clients The Chuo Mitsui Trust and Banking Company, Limited

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1 A trust bank that provides services for individual and corporate clients The Chuo Mitsui Trust and Banking Company, Limited Review of Operations Management Structure Corporate Data Individual Services Investment Trusts Annuity Insurance Deposit and Trust Products Investment Trust Wrap Accounts Loans to Individuals Real Estate Services Testamentary and Inheritance Services Corporate Services Financial Services Diverse Financing Techniques Advisory Functions Business Matching Fund-management Products Real Estate Business Real Estate Brokerage Real Estate Securitization Real Estate Appraisals and Assessment Consulting on Effective Use of Real Estate Stock Transfer Agency Services Stock-related Services Advice on IPOs Practical, Stock-related Legal Assistance IT Support Services Support Services for Investor Relations Activities 30

2 Review of Operations: The Chuo Mitsui Trust and Banking Individual Services 1. Business Outline The businesses for individual clients of the Chuo Mitsui Trust and Banking Company, Limited ( CMTB ) include investment trust and annuity insurance-related business, individual loan business, real estate business, and testamentary-related business. CMTB conducts each business on the basic premise that it will strive to actively offer new products and services tailored to meet client needs. In the investment trust and annuity insurance-related business, responding to the increasing needs for asset management against the backdrop of the mass retirement of baby boomers and the reform of the public pension system, CMTB provides a variety of products (investment trusts, annuity insurance, deposit and trust products, and invest- 2. Product and Service Outline ment trust wrap accounts) that meet clients diverse needs, as well as high-quality consulting services. CMTB s individual loan business strategy aims at differentiation from other banks. CMTB provides a wide selection of products that reflect its unique qualities, to meet user requirements, taking into account the different lifestyles of each generation. In the real estate and testamentary-related businesses, against a backdrop of the aging society and a declining birthrate, CMTB applies its asset utilization expertise through high-quality consulting to meet the needs for effective asset utilization, smooth asset succession from one generation to the next, and strategies for asset preservation. Notable Achievements in Sales of Investment Trusts and Annuity Insurance CMTB handles a rich variety of investment trusts and annuity insurance geared to client needs, and complements these funds with expanded access to accurate, highquality consulting services. As a result, CMTB is able to CMTB s Expanding Lineup of Investment Trust Products Investment trusts and other securities investments are attracting growing attention as a means of asset management that can be expected to deliver comparatively high profits, if managed effectively, during an extended period of low interest rates. CMTB is working to expand its lineup of investment trust products so that it can better accommodate clients increasingly diverse needs in line with changing lifestyles. In May 2010, CMTB began offering the Australia Public and Corporate Bond Fund (the Aussie Bond, established and managed by Chuo Mitsui Asset Management Company, Limited), which invests in Australian public and corporate bonds, and delivers a monthly dividend payment. maintain its position in the vanguard in its market, in terms of the balances of both investment trust sales and annuity insurance sales. Review of Operations Management Structure Corporate Data 31

3 In February 2011, CMTB began selling the Nomura World REIT Currency Selection Fund series ( World REIT Plus, established and managed by Nomura Asset Management Co., Ltd.), which allows investors to select from among four currencies (Japanese yen, U.S. dollar, Australian dollar, and Brazilian real), each of which invests in the world s real estate investment trusts (REITs). Investment Trust Wrap Accounts Market conditions are becoming more complex nowadays, and there are increasing expectations for the advanced asset management expertise of specialists. Expanded Lineup of Single-Payment Whole Life Insurance CMTB handles investment trust wrap accounts, and provides comprehensive asset management services that include the design of custom-tailored portfolios based on each client s management needs and risk tolerance, and the reporting of results. Review of Operations Management Structure Corporate Data Amid growing interest in planning and preparing an inheritance, single-payment whole life insurance is attracting more attention for goals such as the smooth division of inheritance assets and the preparation of funds necessary for inheritance tax payment. CMTB began offering Sekai no Kajitsu single-payment whole life insurance (underwritten by Mitsui Sumitomo Primary Life Insurance Company, Limited) in July In December 2010, CMTB also began offering Yume no Katachi single-payment whole life insurance (underwritten by Nippon Life Insurance Company). Best Quality CMTB created Best Quality, a members-only service for clients with an individual aggregate transaction balance exceeding 10 million. Members enjoy access to special information and various privileges, including preferential interest rates and reduced fees, information about theater productions, and ticket sales (service content varies depending on the transaction balance). CMTB also publishes a biannual information magazine for members, offering a variety of useful information on topics ranging from finance to lifestyles. 32

4 Wide Variety of Loans Geared to the Lifestyles of Individuals CMTB provides loans to first-time homeowners for the opt into a package that carries a rider against all three purchase or construction of a new home, the purchase of a major diseases in Japan cancer, stroke and heart attack home upon the sale of an older dwelling, or the refinancing and one specifically for cancer. of a home. However, the scope of lending choices also Responding to diversifying lifestyles and a range of retail includes formats with added convenience, such as an banking requirements, CMTB complements its housing option to combine miscellaneous expenses into a loan, as loans with a selection of products that utilize homes as collateral. This includes home-backed card loans ( -style), a well as loans with repayment provisions that grant borrowers added peace of mind in the event of unforeseen circumstances, such as illness. For the latter, borrowers can funds for any purpose of their choosing. secured financial instrument that enables clients to acquire Home-Backed Loans for Seniors Ensure Comfort in Old Age Leading the way in the finance industry, CMTB has been handling reverse mortgages since 2005, providing elderly homeowners with funds that enable them to maintain a comfortable lifestyle in their retirement years. In addition, in October 2009, CMTB began offering home remodeling loans for older clients (with a lump-sum principal repayment) for use by seniors in the funding of home renovations for improved barrier-free access. Applying Asset Utilization Expertise through High-Quality Consulting Capitalizing on Real Estate CMTB maintains close ties with Chuo Mitsui Realty Co., including seminars and individual sessions arranged with Ltd., a member of the Chuo Mitsui Trust Group with years Chuo Mitsui Realty, to enhance consultation services covering all real estate categories. For members and special of experience in the market and an extensive service network, to precisely address all the issues that emerge in members of CMTB s members-only Best Quality service dealing with real estate from a client s perspective. CMTB who seek real estate brokerage services, CMTB maintains a lists numerous buildings on Chuo Mitsui Realty s website preferred system that discounts brokerage fees at the time and optimizes a wide range of information opportunities, of contract signing. Review of Operations Management Structure Corporate Data 33

5 Testamentary Trusts Inheritance Coordination Services Review of Operations CMTB s comprehensive view of testamentary-related business covers all angles, including taxation and legal considerations. CMTB utilizes the testamentary trust expertise only a trust bank can possess to extend pertinent advice on the preparation of wills for the expeditious transfer of wealth. CMTB also offers subsequent assistance, such as custody of wills and executor services to guarantee accurate distribution of assets according to the stated wishes of the deceased. Japan s First Life Insurance Trust Jointly Developed Across Industries Together with Prudential Life Insurance Co., Ltd., CMTB developed Chuo Mitsui s Anshin Support Trust (a life insurance trust) and began offering this product in July This new product enables clients to flexibly designate CMTB also offers inheritance coordination services to smooth the succession process. CMTB can complete burdensome inheritance procedures on behalf of the successor, including investigating inherited assets, creating an asset inventory, documenting discussions of how to divide assets and carrying out associated procedures (including registering real estate, transferring ownership of assets such as deposits and stocks, and converting assets into cash), and paying inheritance tax on behalf of the successor. in advance the parties to whom life insurance proceeds will be disbursed, how they are to be disbursed, and the ways such proceeds are to be used. This product, which includes the flexible asset disbursement function as an extra feature, is the first life insurance trust product to be offered in Japan and consequently has helped boost CMTB s reputation for its product development capability. Enhancing the Network through Initiatives like the Development of Distinctive Branch Offices Management Structure Corporate Data Consulplaza Openings CMTB has established a network of Consulplaza consulting-oriented offices at highly convenient locations frequented by clients in their daily lives, for example at train stations Introduction of a New Branch Terminal System CMTB has introduced a new branch terminal system known as Palette for use by clients visiting branches to conduct banking transactions. Among the system s capabilities is functionality for dramatically reducing the amount of information that must be filled in by clients as part of investment trust related procedures. It also provides more detailed and timely market information through displays that can be viewed by clients. CMTB will continue making efforts to reduce the amount and commercial facilities, such as department stores. Consulplazas are generally open year-round, and the offices remain open during evening hours, for people returning home from work. Clients can discuss various topics, including asset management, loans, wills, inheritance, and real estate. of time needed for banking transactions, as CMTB provides more robust support for clients asset management needs, leveraging the enhanced capabilities to provide valuable information in addition to expertise developed over many years. 34

6 Corporate Services Financial Services 1. Business Outline CMTB draws on a wealth of experience and expertise developed over its many years in the industry to provide financing that is carefully geared to the needs of its clients. CMTB supplies funds through its diverse financing functions for a broad range of activities, including corporate restructuring. 2. Product and Service Outline Broaden Fund Supply through Varied Financing Techniques Real estate asset finance, such as non-recourse loans and real estate securitization utilizing the real estate-managed trusts CMTB runs and special-purpose companies, has numerous applications ranging from securitization of company-owned properties to real estate investment projects. For clients interested in corporate restructuring, CMTB provides leveraged finance services for increasing corporate value through restructuring by such means as management buyouts and leveraged buyouts. For clients interested in revitalizing their operations, CMTB supplies funds to meet needs throughout the corporate rehabilitation process through debtor-in-possession financing and other means. Assorted Solutions to Support Clients Efforts to Enhance Operations CMTB maximizes the unique characteristics inherent in a trust bank to provide clients with a wide selection of corporate value-enhancing solutions, from introductions that can lead to mergers and acquisitions involving business divisions and subsidiaries to the liquidation of assets and the restructuring of corporate real estate (CRE strategies). CMTB also presents workable business strategies, such as methods to facilitate business succession and measures to deflect hostile takeover bids. Real Estate Business 1. Business Outline CMTB has a number of real estate specialists, including real estate appraisers, on staff. Drawing on the many years of experience and expertise accumulated by these professionals and their predecessors, CMTB is able to offer clients a comprehensive range of real estate-related consultations from various starting points, including brokerage and securitization, effective land utilization and real estate appraisals and assessment, to respond accurately to demand for financial solutions for client companies. 2. Product and Service Outline Comprehensive Skills of Real Estate Professionals Reinforce Consultation Capabilities Real Estate Brokerage and Securitization Services In the field of property sales and purchase for business use, CMTB s seasoned professionals boast solid experience and expertise in various real estate-related matters, including taxation and law. They respond with finely tuned precision to the needs of corporate clients and take on everything from structural surveys to the preparation of transfers of ownership. In the area of improved balance sheet composition and funding, CMTB assists clients in creating financial strategy solutions such as securitization and other methods. Real Estate Appraisals and Effective Use of Property CMTB makes full use of accumulated real estate development and management know-how to extend advice on the design of suitable plans for eliciting greater practical value from old buildings and idle land. CMTB also draws on the considerable expertise of its own real estate appraisers to address heightened demand for accurate assessment of property values, paralleling the move to introduce international accounting standards. Review of Operations Management Structure Corporate Data 35

7 Corporate Real Estate Strategies The importance of real estate in corporate management strategies is growing. Against this backdrop, CMTB is actively encouraging clients to undertake a review of respective property holdings and related utilization strategies. CMTB is also reinforcing its proposal-making activities, with a focus on real estate sales and securitization. Integral to this process is the know-how acquired over many years in financing and real estate-related operations, and the ability to pinpoint the changing needs and perceptions of each client with regard to property holdings. Aggressively Promote Real Estate Fund-related Business Review of Operations CMTB energetically promotes its real estate fund-related business to capitalize on emerging opportunities, such as the trend among companies to reduce and recombine assets through securitization of real estate, an expanded J- REIT market, as well as demand for private fund formation fueled by diversifying investment needs. Administration of Securitized Real Estate Trusts The formation of real estate securitization schemes and real estate funds almost always includes the establishment of trusts to manage the subject property. Trusts to manage and dispose of real estate represent a fundamental structure of real estate securitization, and in the administration of such trusts, CMTB suggests securitization schemes matched to user requirements and offers administration-related services of a high caliber. The value of trusts under administration stood at about 4.7 trillion, as of March 31, Asset Custody and General Administration for Listed J-REITs J-REIT investment companies are legally obligated to outsource to trust banks and other financial institutions the administration of investor lists as well as asset custody services, such as the creation of accounting books for asset holdings, including cash, title deeds and marketable securities, as well as actual custody of these assets, and the execution of general office work, such as corporate administrative processes. CMTB has participated in the establishment of a number of listed investment companies and as of March 31, 2011, provided asset custody and other administration services to 10 of the 35 listed investment companies. The high quality of its services has earned CMTB high marks from these clients. Management Structure Corporate Data Fulfill Investment Needs with Pertinent Real Estate Investment Consultations While a true recovery in the real estate market is expected to take more time, demand for real estate remains firm. For many companies, real estate transactions still form the backbone of corporate management and financial strategies, while investors remain keen to acquire and operate revenue-generating real estate that they can count on to deliver a steady cash flow. CMTB designated its real estate investment advisory department and real estate investment promotion departments as specialized sections. CMTB is registered as a general real estate investment advisory and therefore has a structure in place to facilitate responses to any real estate investment need that clients may have. CMTB s capabilities are enhanced by consistent efforts to enhance the content of its consultations. A Subsidiary to Handle the Investment Management Business In order to expand its asset management services for domestic and overseas institutional investors, CMTB established Chuo Mitsui Trust Realty Company, Limited in November 2009 to handle the investment management business by offering investors securities such as trust beneficiary rights with real estate as the underlying asset. The new company, which began operations in March 2010, will offer investment management and advisory services associated with investments such as real estate trust beneficiary rights by bringing together the Chuo Mitsui Trust Group s skilled personnel and expertise in the asset management and real estate businesses. 36

8 Stock Transfer Agency Services 1. Business Outline Stock transfer agency services ensure swift and accurate execution of a multifaceted array of corporate actions, assumed on behalf of stock-issuing clients and all done in accordance with legal and taxation rules. These services encompass annual tasks, namely, maintaining shareholder lists, sending out voting notices and invitations to shareholders general meetings, and calculating and distributing dividends, in addition to stock-related events, including capital increases, stock splits and the transfer of shares. 2. Product and Service Outline Strengthen Information Management System in Back Office Operations CMTB outsources its back office operations to Japan Stockholders Data Service Company, Limited, a 50:50 joint venture established with Mizuho Trust Banking Co., Ltd., in April Japan Stockholders Data Service is working to improve its stock transfer agency-related services by strengthening its information management system. The company was granted use of the Privacy Mark by Japan Information Processing Development Corporation Practical, Stock-related Legal Assistance CMTB s specialized staff possessing a wealth of experience offer various seminars and study sessions on an individual basis for stock-issuing companies on such themes as the Companies Act and the handling of the general shareholders meeting. CMTB published Heisei 23 Nenban Kabushiki Jitsumu Kabunushi Sokai no Point ( Stock Matters: Hints on Executing General Shareholders Meetings (2011 edition) ) in February 2011, and Kabunushi Investor Relations (IR)* and Shareholder Relations (SR)* Support CMTB offers beneficial shareholder survey services to identify domestic and overseas institutional investors not listed in shareholders registries such as domestic institutional investor beneficial shareholder data creation services and foreign beneficial shareholder surveys. In addition, CMTB provides an extensive selection of services designed to offer comprehensive support for corporate IR and SR activities, including individual shareholder analysis reports. (JIPDEC) in July The Privacy Mark is granted to an entity who has developed a system for taking appropriate protection measures in the handling of personal information, based on the Privacy Mark System operated by JIPDEC. CMTB will continue working to enhance its information management system, including the protection of personal information. Sokai Torishimariyakukai Kansayakukai Gijiroku Sakusei no Jitsumu ( Practices for Creating the Minutes of General Shareholders Meetings, Board of Directors Meetings and Board of Auditors Meetings ) in March These provide explanations on the operation of shareholders meetings based on the latest laws, using model cases and making full use of the writers actual experiences. * Investor Relations (IR) and Shareholder Relations (SR) Investor relations (IR) refers to public relations activities targeting investors, specifically the full range of activities by which corporations provide the information needed to make investment decisions to shareholders and investors in a timely, fair, and ongoing manner. Shareholder relations (SR) refers to those activities targeting shareholders. Review of Operations Management Structure Corporate Data 37