2 0 0 1

Printed in Japan on recycled paper

Annual Report(April 2000~March 2001)

N o .1 F i n a n c i a l
The Mizuho Financial Group is an innovative financialgroup that will lead the new era through cutting-edge

Contact Information

Mizuho Holdings, Inc.
1-6-1, Marunouchi,
Chiyoda-ku, Tokyo 100-0005,
Japan
Tel. +81-(0)3-5224-1111
URL: http://www.mizuho-fg.co.jp

comprehensive financial services.
The Dai-Ichi Kangyo Bank, Limited
1-1-5, Uchisaiwaicho,
Chiyoda-ku, Tokyo 100-0011,
Japan
Tel. +81-(0)3-3596-1111
URL: http://www.dkb.co.jp

DKB

Fuji Bank

MizuhoSecurities

IBJ

Mizuho Trust& BankingBASIC PRINCIPLES OF THE CONSOLIDATION
We will create a new financial services group that will lead the 21st century based on
the following five basic principles: Offer a wide range of the highest-quality financial services to our customers.
 Maximize shareholder value and, as the leader of Japan’s financial services industry,earn the trust of society at large.

The Fuji Bank, Limited
1-5-5, Otemachi,
Chiyoda-ku, Tokyo 100-0004,
Japan
Tel. +81-(0)3-3216-2211
URL: http://www.fujibank.co.jp

The Industrial Bank of Japan, Limited
1-3-3, Marunouchi,
Chiyoda-ku, Tokyo 100-8210,
Japan
Tel. +81-(0)3-3214-1111
URL: http://www.ibjbank.co.jp

 Offer attractive and rewarding job opportunities for employees.
 Fully utilize the advantages and strengths of each bank and maximize the benefits ofthe consolidation through cost reductions.
 Create a new corporate climate and culture.

Group Name:

Mizuho Financial Group (“MHFG”)

Holding Company Name: Mizuho Holdings, Inc. (“MHHD”)
Meaning:

In Japanese, mizuho () means “fresh harvest of rice,” and the phrase “mizuho
country”—meaning “fruitful country”—is used to refer poetically to Japan.

Reason for Selection:

The name “Mizuho” expresses the commitment of MHFG, as Japan’s leading financial institution, tooffer highly “fruitful” products and services to all of its customers, both domestic and overseas.
We feel that the youthful and energetic image of freshness projected by this name is perfectly suitedfor the new corporate culture of MHFG, and that it is a name with which everyone can easily become
familiar.

The Mizuho Logo:I MIZUHO

The logo is the combination of the initial letter “M” of “Mizuho” and a deep blue arc. The “M”
appears to be in dynamic motion, expressing liveliness and action, while the deep-blue arc depicts theearth. The colors used in the logo also have a special meaning—the bright red highlighting passion,action and dynamism and the deep blue highlighting reliability and stability.

Mizuho Securities Co., Ltd.
Otemachi First Square,
1-5-1, Otemachi,
Chiyoda-ku, Tokyo 100-0004,
Japan
Tel. +81-(0)3-5208-3210
URL: http://www.mizuho-sc.com

Mizuho Trust & Banking Co., Ltd.
1-6-2, Marunouchi,
Chiyoda-ku, Tokyo 100-0005,
Japan
Tel. +81-(0)3-3240-7000
URL: http://www.mizuho-tb.co.jp

No.1 Financial Group MIZUHOThe Mizuho Financial Group is highly ranked in a wide range of financial services.
Supporting the financial needs of households

Supporting Global Business Approx. ¥34.2 trillion in personal assets under management (No. 1 in Japan)
 Approx. ¥8.4 trillion in residential housing loan portfolio (No. 1 in Japan)
 Approx. 420,000 subscribers of Internet banking services (top among
Japanese banks)
 Approx. 35% share of total debit card sales by affiliated merchants (No. 1
among Japanese banks)

 70% coverage of Fortune 500 companies
 US$70.7 billion in arrangement of global syndicated loans (No. 1 among Japanese banks)

Total Debit Card Salesby Affiliated Merchants(Sales in fiscal 2000: ¥191 billion)(January~December 2000)

 US$1.9 billion in arrangement of global project finance (No. 1 among Japanese banks)

Mizuho’s share:

Approx. 35%(January~December 2000)

MIZUHO No. 1 Japanese bank (Approx. 32% share) in foreign exchange/yen clearance services(All figures are the aggregate of three banks as of March 31, 2001.)(as of September 30, 2000)

 No. 1 Japanese bank (Approx. 45% share) in yen custody services for foreign institutional
investors

Loans to Small and Medium-Sized Enterprises(As of March 31, 2001)
40•
35

30•

20•

(trillion yen)

MHFG
Sumitomo Mitsui
Banking Corp. (SMBC)
UFJ Group
Mitsubishi
Tokyo
Financial Group

Supporting the financial needs of corporations(as of September 30, 2000)

 ¥35 trillion in loans to small and medium-sized enterprises (No. 1 in Japan)

Global Syndicated Loan Arrangers(aggregate of three banks as of March 31, 2001)

 ¥27.5 trillion in loans to large corporations (No. 1 in Japan)

Ranking

1 JP Morgan
2 Bank of America
3 Citibank/SSB
4 Barclays
5 Deutsche Bank
6 BancOne
7 ABN AMRO
8 MHFG
9 CSFB
10 HSBC
11 FleetBoston
12 BNP Paribas
13 Societe Generale
14 First Union
15 Commerzbank
16 Bank of Tokyo-Mitsubishi
17 RBS
18 Dresdner KB
19 UBS Warburg
20 Goldman Sachs
Source: IFR.

(aggregate of three banks as of March 31, 2001)10•

 US$41.7 billion (40% share) in arrangement of domestic syndicated loans (No. 1 in Japan)(fiscal 2001)

0•

Source: Preliminary financial results for fiscal 2000
(comparison of outstanding loans to small
and medium-sized enterprises after
subtracting outstanding consumer loans).
Researched by Mizuho Holdings.

Loans to Large Corporations(trillion yen)

(As of March 31, 2001)
40•

MHFG
30•
27.5

Mitsubishi Tokyo
Financial GroupUFJ Group

20•

SMBC

Global Project Finance Arrangers(Amounts arranged, January 1~December 31, 2000)

 Transactions with 1,170 financial institutions (No. 1 in Japan)(aggregate of three banks as of March 31, 2001)

 Mizuho Securities: No. 1 (21% share) in value in lead management of domestic straight bondissues for institutional investors (excluding city bank SBs, etc.)(October 2000~March 2001)

 Mizuho Securities: No. 1 (45% share) in value of domestic asset-backed securities issues inwhich it acted as lead manager(October 2000~March 2001)

 Ranked 7th in M&A advisory banking transactions involving purchases of Japanese companies(based on transaction value; from research by Thomson Corporation, Japan)

Amount (US$ million)

305,202.59
299,576.03
225,739.05
115,782.74
87,994.16
81,617.35
76,381.92
70,731.70
51,708.89
46,433.24
44,929.89
41,427.00
41,424.85
34,655.90
32,921.27
32,130.23
31,798.41
30,379.32
28,505.08
27,473.55(Results for January 1~December 31, 2000)
AmountNo. of(US$ million) Deals

Ranking

1 Citigroup
2 Societe Generale
3 Bank of America Securities
4 ABN AMRO
5 JP Morgan
6 CSFB
7 WestLB
8 Deutsche Bank AG
9 BNP Paribas
10 Barclays Capital
11 Dresdner KB
12 Merrill Lynch
13 Bank of Nova Scotia
14 MHFG
15 Goldman Sachs
16 HSBC
17 Credit Lyonnais
18 Bank of Tokyo-Mitsubishi
19 Abbey National
20 Bank of Montreal
Source: PFI.

11,927
9,616
9,370
7,875
7,472
6,719
6,716
6,487
3,712
3,423
3,155
2,631
2,165
1,976
1,832
1,464
1,339
1,272
1,200
1,040

51
30
33
31
24
10
37
22
24
23
24
4
6
14
3
1
9
7
7
5

(January~December 2000)

10•

 Top-class Japanese bank in firm banking, with contracts with approx. 84,000 companies(aggregate of three banks as of March 31, 2001)

0•

Source: Preliminary financial results for fiscal 2000.
Researched by Mizuho Holdings.

Domestic Syndicated Loan Arrangements(billion U.S. dollars)(Fiscal 2000)
50•

Domestic ABS League Table(Wholesale bonds, excluding city bank SBs, etc.)(Second half, fiscal 2000)
Lead Management Issues
Total issues: ¥2,097.0 billion(Second half, fiscal 2000)
Lead Management Issues
Total issues: ¥309.1 billion

MHFG
41.7

40•

Domestic SB League Table

Bank of Tokyo-Mitsubishi
Sumitomo Bank

30•

Sanwa Bank
Citigroup

20•

Sakura Bank

10•

J.P. Morgan
Chase

0•

Source: IFR Securities Data.

III MIZUHO

Ranking

Securities company

Leadmanagement
issues(¥ billions)

1 Mizuho Securities
452.0
2 Nomura Securities
383.3
3 Nikko Salomon Smith Barney 311.7
4 Daiwa Securities SMBC
233.3
5 Morgan Stanley Dean Witter 155.0
6 Sakura Securities
146.5
7 Tokyo-Mitsubishi Securities 133.3
8 Merrill Lynch
93.3
9 Kokusai Securities
40.0
10 Shinko Securities
36.0
Source: Mizuho Securities research.

Market
share
(%)

21.55
18.28
14.86
11.13
7.39
6.99
6.36
4.45
1.91
1.72

Ranking

Securities company

Leadmanagement
issues(¥ billions)

1 Mizuho Securities
140.5
2 Sanwa Securities
32.9
3 Deutsche Securities
29.4
4 Daiwa Securities SMBC
25.9
5 BNP Paribas
19.2
6 Goldman Sachs
16.7
7 CSFB
16.7
8 Tokai International Securities
Co., Ltd.
16.2
9 Nikko Salomon Smith Barney 10.5
10 J.P. Morgan Securities
1.1
Source: Mizuho Securities research.

Custody and Foreign Exchange
Agency Settlements
Yen custody assets
of foreign investors(Sept. 2000)
Market
share
(%)

45.46
10.65
9.51
8.38
6.21
5.39
5.39
5.25
3.40
0.36

Number of foreignexchange agency
settlement customers(Sept. 2000)
MIZUHOMIZUHO

Mizuho’s share:

Approx.
45%, No. 1

Mizuho’s share:

Approx.
32%, No. 1*Aggregate totals of the three banks are calculated basedon the non-consolidated figures of Dai-Ichi Kangyo Bank,
Fuji Bank and Industrial Bank of Japan.
MIZUHO IV

Group MIZUHOThe Mizuho Financial Group is a top financial institution that
supports the Japanese economy.

¥163.4¥211.2

No. 1 in Consolidated Total Assets
No. 1 in Consolidated Net Income

trillionbillion Supporting the financial needs of households

No. 1 in personal assets under management

approx.

No. 1 in residential housing loan portfolio¥34.2

approx.

trillion¥8.4 trillion

 Supporting the financial needs of corporations

No. 1 in loans to small and medium-sized enterprises
No. 1 in loans to large corporations
No. 1 in arrangement of domestic syndicated loans

¥35
¥27.5

trilliontrillion

US$41.7 billion

 Supporting global business

US$70.7 billion
No. 1 Japanese bank in share of yen custody for foreign institutional investors approx. 45%
No. 1 Japanese bank as global syndicated loan arranger

MIZUHO II

Financial Highlights (Consolidated)
Mizuho Holdings, Inc.

For the Fiscal Year ended March 31, 2001
Total Income
Total Expenses
Income before Income Taxes and Minority Interests
Net Income
Cash Dividends

At March 31, 2001
Total Assets
Securities
Loans and Bills Discounted
Deposits
Total Shareholders’ Equity

For the Fiscal Year ended March 31, 2001
Per Share
Net Income
Cash Dividends:
Common Shares
Preferred Shares:
First Series Class I Preferred Shares
Second Series Class II Preferred Shares
Third Series Class III Preferred Shares
Fourth Series Class IV Preferred Shares
Fifth Series Class V Preferred Shares
Sixth Series Class VI Preferred Shares
Seventh Series Class VII Preferred Shares
Eighth Series Class VIII Preferred Shares
Ninth Series Class IX Preferred Shares
Tenth Series Class X Preferred Shares
At March 31, 2001
Capital Adequacy
Risk-based Capital Ratio (BIS Capital Ratio)

V MIZUHO¥

Millions of yen

Thousands of
U.S. dollars

Fiscal 2000

Fiscal 2000

5,913,742
5,433,665
480,077
211,260
43,407$47,729,963
43,855,248
3,874,715
1,705,087
350,341

Millions of yen

Thousands of
U.S. dollars

2001

2001

¥163,455,480
28,062,563
92,286,772
80,176,482
6,254,270$1,319,253,271
226,493,654
744,848,850
647,106,400
50,478,376

Yen

U.S. dollars

Fiscal 2000

Fiscal 2000

¥20,524.13$165.65

7,000

56.50

22,5008,200
14,00047,6007,500
42,00011,0008,000
17,5005,380

181.6066.18
112.99384.1860.53
338.9888.78
64.57
141.2443.42

11.39%

CEO MESSAGE
CHAPTER 1
CHAPTER 2

Annual Report 2001

CHAPTER 3

Contents2

Mizuho Holdings’ Board of Directors and Executive Officers

6

Disclosure Policy of MIZUHO8Management Strategy of MIZUHO

9Chapter 2
Consolidation Synergy of MIZUHO

19

29

Chapter 4
39

Chapter 5Internal Control Systems of MIZUHO

61Community Activities of MIZUHO

72

Chapter 7
Environmental Awareness of MIZUHO

74

75

Chapter 9
97

Chapter 10
Non-Consolidated Financial Statements of Mizuho Holdings
and the Five Core Subsidiaries

133

Chapter 11
Corporate Data of MIZUHO146

MIZUHO 1

CHAPTER 10 CHAPTER 11

Financial Data of MIZUHOCHAPTER 9

Chapter 8
Financial Analysis of MIZUHOCHAPTER 8

Chapter 6

CHAPTER 7

Business Strategy of MIZUHOCHAPTER 6

Chapter 3
Evolution of MIZUHOCHAPTER 5

Chapter 1

CHAPTER 4

A Message from the Management

A Message from the Management

From left: Masao Nishimura, Chairman & Co-CEO,
Katsuyuki Sugita, President & Co-CEO,
Yoshiro Yamamoto, Chairman & Co-CEO

Fa c i n g t h e C h a l l e n g e sof Creating a Business Modelfor the 21st Century
We would like to start by thanking our shareholders
and customers for your continued support. The following sections of this annual report are designed to deepen the understanding of the Mizuho Financial Groupby introducing our policies and undertakings.

2 MIZUHOCEO MESSAGE

 THE LAUNCHING OF MHFG

In fiscal 2000, we moved ahead with measures to

The economic situation in fiscal 2000 was influenced to a

streamline our management infrastructure with a view toconsiderable extent by events in the U.S. economy, which

manage and administer the group as a whole. More specifi-

decelerated sharply from the second half of the year aftercally, we built a BU-based profit management system thatseveral years of sustained expansion.

aims to optimize our business portfolio and maximize prof-

While there was growing concern that this might cause

its. We continued to work on strengthening and enhancing

an economic downturn in certain parts of Asia, the recovery

our various internal management systems in line with ourtrend in Europe continued to be firm overall. In Japan,

basic policies on group risk management, compliance andalthough corporate plant and equipment investment con-internal audit.

tinued to underpin the economy, personal consumption

With respect to human resources, we are building a sys-

stayed stagnant, and, combined with the tapering off of growth

tem that is better suited to the new era. Its main featuresin exports, the domestic economic recovery remained weak.

are the deployment of the right people to the right jobs,

In the financial sector, the Japanese “Big Bang” reforms

and an emphasis on fair evaluation and treatment accord-have made steady progress, and the authorities have taken

ing to duties and performance, as well as specialization. Its

steps to promote further integration of financial regulators.

objective is to enable each employee to give full rein to his

There was also real progress in the realignment of theor her abilities in providing a speedy and appropriate

financial sector as consolidations and alliances among

response to customers’ requirements.

financial institutions gathered momentum, while competition intensified as new players from outside the financial
sector began to enter the market.

 MAXIMIZING THE SYNERGIES ARISINGFROM THE CONSOLIDATION

Against this backdrop, The Dai-Ichi Kangyo Bank, Limited

MHFG’s plan to become an innovative financial services(“DKB”), The Fuji Bank, Limited (“Fuji Bank”) and The

group that will lead the new era through cutting-edge

Industrial Bank of Japan, Limited (“IBJ”) carried out a stock-

comprehensive financial services is based on exploiting tofor-stock exchange to establish Mizuho Holdings, Inc.

the full its enormous financial strengths, which are backed(“MHHD”) on September 29, 2000. This event marked theby a powerful customer base and state-of-the-art financial

inauguration of the Mizuho Financial Group (“MHFG”) andtechnology (“FT”) and information technology (“IT”).

put the three banks firmly at the vanguard of financial
industry consolidation.

The following sections cover the principal measures wetook toward realizing this plan during fiscal 2000.

Following this, by merging the subsidiaries of the three

In the area of consumer banking, the three banks

banks, Mizuho Securities Co., Ltd. and Mizuho Trust &launched a joint credit card called the Mizuho UC Card in

Banking Co., Ltd. were established on October 1, 2000.

September 2000. They also started selling the Mizuho Fund
Collection of investment trusts in October 2000 as part of MANAGEMENT STRUCTURE OF MHFG

their efforts to satisfy customers’ investment needs. During

In MHHD, we established a Business Unit (“BU”) structure

the same month, DKB and Fuji Bank launched a range ofbased on customer segments and business lines that oper-

unsecured loan products in the high-demand areas of loans

ates across the three banks. The holding company’s role isfor house remodeling, new car purchases and education.

to maximize the synergies arising from within the entire

Following the partial removal of the ban on sales of insur-

group through group-wide strategic planning and manage-

ance products by banks, they also started selling long-term

ment and risk management systems centered on the fivefire insurance policies associated with housing loans.

core subsidiaries.

MIZUHO 3

A Message from the Management

In the area of corporate banking, the three banks estab-

now aims to exploit the resulting synergies between its

lished the Mizuho Venture Fund in May 2000, and are now

securities and investment banking operations. Mizuho Trust

focusing on identifying and supporting the new businesses,& Banking’s goal is to become a leading specialist in trust

venture companies and technologically advanced firms thatbanking for corporations, and it continues its aggressive

will play a leading role in the 21st century.

efforts in the areas of pension trusts, asset management

We also used our advanced FT, resulting in the groupand transfer agency business.

posting solid gains in asset securitization, project financeAnticipating further expansion in the market for asset

and advisory services associated with M&A. In the area ofadministration services, Mizuho Trust & Banking teamed up

syndicated loans in particular, we were able to secure anwith The Asahi Mutual Life Insurance Company, The Dai-ichi

overwhelming share of the total amount handled in the

Mutual Life Insurance Company, The Fukoku Mutual Life

domestic market using our customer base and network of

Insurance Company and The Yasuda Mutual Life Insurance

financial institutions, both of which are the largest in Japan.

Company to establish the Trust & Custody Services Bank,The efforts we have put into the syndication arrangement

Ltd. in January 2001. The new bank is actively engaged inbusiness overseas have paid off handsomely, securing for us

the master trust and securities management businesses.

the number one position in Asia in terms of market share

Also, in September 2000, it combined with the four life

and a top ten ranking in terms of global performance.

insurance companies mentioned above to establish the

One of our goals is to develop new joint Internet busi-

Defined Contribution Plan Services Co., Ltd. to develop

nesses that transcend traditional business parameters in thetools for educating policyholders about defined contribu-

area of e-business and other multimedia banking, settle-

tion pension plans.

ment and clearing services. In line with this, the three banks
established the em-town Corporation in September 2000

 BUSINESS RESULTS AND MANAGEMENT ISSUES

with the capital participation of numerous cooperating

Against the background of the severe earnings environ-

financial institutions and leading companies. We have cre-ment prevailing in fiscal 2000, we endeavored to raise prof-

ated and now run an attractive shopping mall offering

its by implementing the above-mentioned business plans

financial products and services on the Internet. In January

and maximizing the synergies arising from the consolida-

2001, we opened the Fuji Bank “em-town Branch” in thistion. We also took steps to rationalize management. The

mall. The branch specializes in offering banking services

main efforts of the three banks were devoted to closing

such as deposits, loans and transfers over the Internet.

and consolidating business offices in Japan and overseas

The three banks’ securities and trust banking subsidiaries

while giving top priority to customer convenience. This

were respectively merged into Mizuho Securities andresulted in reductions of 20 domestic branches, four over-Mizuho Trust & Banking in October 2000. We have alsoseas branches and 11 overseas subsidiaries. As for stream-

made steady progress in consolidating the three banks’lining the workforce, thoroughgoing efforts to improveoverseas securities and trust banking subsidiaries and set up

business efficiency led to staff cuts of over 1,500 employees.

Mizuho International plc in the U.K., Mizuho Bank

Our efforts to dispose of non-performing loans (“NPLs”)(Schweiz) AG in Switzerland and Mizuho Trust & Banking

focused on making appropriate write-offs and provisions to(Luxembourg) S.A. Mizuho Securities has already secured

ensure the soundness of our assets. We also took measures

for itself a top share as a lead manager in underwriting

to promote the final disposal of NPLs as a key management

domestic issues of public straight corporate bonds. In May

issue. As a result, the three banks disposed of ¥695.5 bil-

2001, the investment banking divisions of the three banks

lion in NPLs during the fiscal year.

were brought together under Mizuho Securities, which

4 MIZUHOCEO MESSAGE

As a result, ordinary income for fiscal 2000 came to

Our search for the ideal business model has convinced us¥5,756.9 billion, ordinary profits to ¥574.8 billion and netthat this will enable us to create a truly excellent compre-

income to ¥211.2 billion on a consolidated basis.

hensive financial services group that can respond to the

We expect the economic environment to remain severe,

complex and broadly based needs of customers by allowing

while competition is likely to intensify because of the start

the legally separate subsidiaries to refine their high-levelof competition among the “Big Four” financial groups inexpertise in accordance with the characteristics of their

Japan and the entry into the financial sector of institutions

respective markets and businesses, and ensuring that they use

from overseas and newly emerging competitors from non-the latest FT and secure highly professional personnel resources.

financial business sectors.
Against this background, we will continue to offer the CONCLUSION

best-quality financial services quickly and with precision

We intend to establish our status and brand as a financial

through a rich variety of channels to meet customers’ evergroup with overwhelming advantages in the Japanese mar-diversifying, ever more sophisticated needs. In order toket. We also aim to become a leading Japanese player inachieve the goals of our “Revitalization Plan,” we will

global markets and one of the top five financial groups indevote our full efforts to build a powerful financial structure

the world. Since we will continue our sincere efforts to sat-by boosting profitability and drastically cutting costs.

isfy customers by adhering firmly to our policy of putting
the customer first and dedicating the group’s total

 MHFG’S BUSINESS MODEL

strengths to providing the best possible financial products

Subject to approval from the appropriate regulatory author-and services, we look forward to the continuing support ofities, our operations will be consolidated and reorganized inour shareholders and customers.

April 2002. The three banks will be realigned into twobanks—Mizuho Bank, Ltd. and Mizuho Corporate Bank,

July 2001

Ltd.—and along with these two banks, Mizuho Securities
and Mizuho Trust & Banking will also become direct subsidiaries of MHHD.
Mizuho Bank’s main customers will be individuals, domestic companies and local governments. Mizuho Corporate

Masao Nishimura

Bank will primarily focus on major corporations, financial

Chairman & Co-CEO

institutions, national governmental public sector entities
and overseas corporations.
We must be able to provide customers with wide-ranging,highly specialized services worthy of a comprehensive finan-

Yoshiro Yamamotocial services group in the 21st century, and respond speedily

Chairman & Co-CEOand dynamically to the various environmental changes
expected in the future. In order to do this, we concluded
that the best and most appropriate business model available was a management format whereby legally separate

Katsuyuki Sugita

subsidiaries were established under a holding company

President & Co-CEO

according to customer segments and business lines.

MIZUHO 5

Mizuho Holdings’ Board of Directors and Executive Officers

Masao Nishimura
Chairman & Co-CEO

Yoshiro Yamamoto
Chairman & Co-CEO

Hiroshi Araki
Director

Tsunehiro Nakayama
Tadao Noda
Managing Executive Officer
Managing Executive Officer
Head of Strategic Planning Head of Risk Management Group /Chief Risk Officer
Group / Chief Strategy Officer
Mitsuru Machida
Managing Executive Officer
Head of Financial Control and Accounting
Group / Chief Financial Officer
6 MIZUHO

Masatake Matsuda
Director

Katsuyuki Sugita
President & Co-CEO

Glen S. Fukushima
Director

Fumito Ishizaka
Managing Executive Officer
Head of IT, Systems & Operations
Group / Chief Information Officer

Makoto Kikkawa
Managing Executive Officer
Head of Human Resources Group /Chief Human Resources Officer

Masaaki SatoManaging Executive Officer
Head of Consumer and Private
Banking Business Unit

Takashi Goto
Managing Executive Officer
Head of Audit and Compliance Group /Chief Compliance Officer

Takanori Yano
Managing Executive Officer
Head of Small Business & Middle
Market Banking Business Unit

Yozo Okumoto
Deputy President

Toshiyuki Ogura
Deputy President

Kenji Nakamura
Corporate Auditor

Yoriaki Sakata
Corporate Auditor

Hiroshi Saito
Managing Executive Officer
Head of Corporate and Financial
Institutions Banking Business Unit

Kuniya Sakai
Deputy President

Shusai Nagai
Corporate Auditor

Minoru Itosaka
Managing Executive Officer
Head of International Banking
Business Unit

Shinji Kubo
Managing Executive Officer
Head of Public Sector Banking
Business Unit

Kisaburo Ikeda
Deputy President

Setsuo Umezawa
Corporate Auditor

Toshikuni Nishinohara
Deputy President

Yukio Nozaki
Corporate Auditor

Yoneo Sakai
Managing Executive Officer
Head of e-Business and Global
Transaction Services Business Unit

Yasuo Tsunemi
Managing Executive Officer
Head of ALM and Trading Business
Unit

Isao Hiraide
Deputy President

Toshiaki Hasegawa
Corporate Auditor

Seiji Sugiyama
Managing Executive Officer
Head of Trust and AssetManagement Business Unit

Mitsunori Kanesaka
Managing Executive Officer
Head of Securities and Investment
Banking Business Unit

(As of June 26, 2001)

MIZUHO 7

Disclosure Policy of MIZUHO

Mizuho Holdings aims to provide customers and shareholders
with various information on MHFG’s “value.” Voluntary, Proactive Disclosure
One of our basic principles is to maximize shareholder value and earn the trust of society atlarge as the leader of Japan’s financial services industry. For this reason, we attach the highest
management priority to disclosing to our customers, shareholders and investors in Japan andoverseas the information they need to form accurate judgments and appraisals of MHFG’s status at any given time.
Since we aim to become one of the top five players in the global financial market, we arecommitted to fair, timely and ongoing disclosure as a means of achieving levels of management transparency that surpass global standards.
Specifically, we intend to use the following tools to promote further understanding ofgroup activities:
 London Stock
Exchange Listing
On March 30, 2001,
MHHD became the firstJapanese bank holding
company to list and trade
its common stocks on the
London Stock Exchange.

• Company briefings and IR meetings by members of top management.
• More detailed annual reports and publications on group performance.
• Diversification and effective use of disclosure channels such as our Internet Web site, conference calls and Internet conferencing.
 Disclosure in Connection with ComplianceIn accordance with the provisions of the Japanese Banking Law, the Securities and Exchange

 Investor Relations
Briefings on MHHD’s
Home Page
Our IR briefings given bymembers of our top management are available forviewing on the MHFG
home page.

Law and the regulations laid down by stock exchanges in Japan and around the world, we will
endeavor to disclose pertinent information in a timely and appropriate manner.

Composition of the Annual Report
This annual report is composed so as to give an overall understanding of the policies andstrategies of MHFG and progress in the consolidation, an introduction to its operations,and details of business topics and financial data relating to the five core subsidiaries—
DKB, Fuji Bank, IBJ, Mizuho Securities and Mizuho Trust & Banking—in a single volume.

8 MIZUHOCHAPTER 1Management Strategy of MIZUHO

Chapter 1
Contents
Framework of Consolidation

10

Management Structure

12

Building a Robust Financial Structure

14

Measures to Enhance Customer Satisfaction (“CS”)

16

Taking Full Advantage of IT and FT to Tranform the Business Structure17

High-quality, High-volume Information Based on Advanced Analytical Capabilities 18

MIZUHO 9

Management Strategy of Mizuho

 FRAMEWORK OF CONSOLIDATIONThe consolidation process will be carried out in two

On September 29, 2000, The Dai-Ichi Kangyo Bank, Limited

stages, Phase 1 from September 29, 2000 to the end of(“DKB”), The Fuji Bank, Limited (“Fuji Bank”) and The

March 2002, and Phase 2 from April 2002.

Industrial Bank of Japan, Limited (“IBJ”) (collectively, the“three banks”) established Mizuho Holdings, Inc. (“MHHD”),

Phase 1marking the inauguration of the Mizuho Financial GroupOn September 29, 2000, the three banks carried out a stock-(“MHFG”), the first financial services group in Japan to be

for-stock exchange to establish a holding company creating

formed through consolidation under a holding company. On

MHFG. MHFG has adopted a Business Unit (“BU”) structure

October 1, 2000, the three banks consolidated their respec-

within the holding company to manage the entire group

tive securities subsidiaries into Mizuho Securities Co., Ltd.

according to customer segments and business lines and(“Mizuho Securities”), and their respective trust subsidiaries

operating across the three banks.

into Mizuho Trust & Banking Co., Ltd. (“Mizuho Trust &Phase 2

Banking”).
Subject to receiving approval from the regulatory authori-

Making use of legislative and tax code changes for corporate

ties, MHFG operations will be consolidated and reorganized

splits, MHFG will take advantage of the changes to consoli-in April 2002. The three banks will be realigned into twodate and reorganize its existing operations. It will realign thelegally separate entities—Mizuho Bank, Ltd. (“Mizuho Bank”)

three banks into Mizuho Bank and Mizuho Corporate Bankand Mizuho Corporate Bank, Ltd. (“Mizuho Corporate Bank”)

and, together with Mizuho Securities and Mizuho Trust &(see page 31). With these two banks, Mizuho Securities andBanking, manage them as legally separate subsidiaries

Mizuho Trust & Banking will also become direct subsidiaries

according to customer segments and business lines.

of MHHD.

Phase 1

Phase 2 (Beginning April 2002)
Mizuho Holdings, Inc. (holding company)
Planning and Administration Headquarters

Mizuho Holdings, Inc. (holding company)

Business Unit (BU) Headquarters

DKB

Fuji Bank

IBJ

Mizuho Bank, Ltd.

Consumer and Private Banking BU
Small Business & Middle Market Banking BU
Corporate and Financial Institutions Banking BU

Mizuho Corporate Bank, Ltd.

Public Sector Banking BU
International Banking BU

Mizuho Securities Co., Ltd.

ALM and Trading BU
e-Business and Global Transaction Services BU

Mizuho Trust & Banking Co., Ltd.

Securities and Investment Banking BU
Trust and Asset Management BU
Other financial subsidiaries
Mizuho Securities Co., Ltd.

10 MIZUHO

Mizuho Trust & Banking Co., Ltd.

 Business Strategies

As we enter the 21st century, we will create a strong andOur business strategies are designed to capitalize on the follow-

dynamic financial services group based on the following fiveing “three primary strengths” gained through consolidation

basic principles:

to construct an optimal group business portfolio that is bal-

 Offer a wide range of the highest-quality financial services

anced and leads in each business sector.

to our customers.
 Maximize shareholder value and, as the leader of Japan’s
financial services industry, earn the trust of society at large.
 Offer attractive and rewarding job opportunities for
employees.

 An overwhelming customer base in the domestic market.
 High-quality and comprehensive financial service capabilities.
 Expanded IT investment capability for high-growth areas.
Specifically, we aim to increase our earning power by Fully utilize the advantages and strengths of each bankexpanding our high-quality loans and assets under manage-and maximize the benefits of the consolidation throughment and increasing fee income, while aggressively striving

cost reductions.

to create and develop new business sectors.

 Create a new corporate climate and culture.
 Vision and Management Goals
We have established the following management goals as ameans of realizing our future concept of becoming an innovative financial group that will lead the new era through cutting-edge comprehensive financial services: One of the top five global banks and the leading financial
institution in Japan.
 A top financial group in terms of customer satisfaction.
 A front-runner in information technology (“IT”) and financial technology (“FT”).
 No. 1 in domestic commercial banking.
 A market leader in the securities business and investmentbanking.
 A top-class institution in the trust, asset management andsettlement businesses.
 A management structure with best practices.

MIZUHO 11

CHAPTER 1

 Basic Principles of the Consolidation

Management Strategy of Mizuho

 MANAGEMENT STRUCTURE

specific Groups and BUs and entrusts them with the execu-

 Active Use of the Business Unit Structuretion of duties under the supervision of the Chief Executive

We have adopted a BU structure that operates across the

Officer. This arrangement encourages Directors to makethree banks, aligning their operations according to customer

speedy decisions and Executive Officers to carry out theirsegments and business lines under MHHD. MHHD formu-

duties swiftly, ensuring that the group is managed smoothly.

lates group management policy and manages and administers the group as a whole, while the group’s five core

 Appointment of Outside Directors

subsidiaries (the three banks, Mizuho Securities and Mizuho

To segregate the decision-making and execution functions

Trust & Banking) manage their respective operations infurther and to make the monitoring of performance moreaccordance with MHHD policy.

effective, we invited three outside directors to join the Board
in June 2001. At a time when the scope of group operations

 Adoption of the Executive Officer

is expanding to cope with the diversification and increasing
sophistication of customers’ financial needs, we believe thatManagement System
MHHD has adopted an Executive Officer system in order tothe addition of outside directors who bring specialist knowl-

separate managerial decision-making and execution, andedge and a wealth of experience to the Board of Directors

clarify levels of authority and responsibility. The Board ofwill improve management judgment and strengthen the

Directors appoints Executive Officers who are responsible for

auditing function.

Management Structure (Phase 1)
GeneralMeeting of Shareholders
Mizuho Holdings (holding company)
Corporate Auditors
Board of Corporate Auditors
Board of Directors
Executive Management Committee

CEO

Business Policy Committees

Internal Audit & Compliance Committee

Planning and Administration Headquarters
Strategic
Planning Group

Financial Control
and Accounting
Group

Risk
Management
Group

Human
Resources GroupIT, Systems &Operations
Group

Audit andComplianceGroup

Business Unit (BU) Headquarters
Trust and AssetManagement BU

Securities andInvestment Banking BU

e-Business and Global
Transaction Services BU

ALM and Trading BU

International Banking BU

Public Sector Banking BU

12 MIZUHOCorporate and Financial
Institutions Banking BU

IBJ

Small Business & Middle
Market Banking BU

Fuji Bank

Consumer and Private
Banking BU

DKB

Mizuho Securities

Mizuho Trust &Banking

CHAPTER 1

 Profit Management System
BU-based profit management
Profit management of
MHFG

Consolidated profit management
Allocation of risk capitalSpecifically, in addition to the group’s five core subsid-

BU-Based Profit Management
We adopted a basic policy that aims to create a strong finan-

iaries, strategically important subsidiaries have been assigned

cial structure through vigorous measures to increase prof-

to specific BUs, each of which draws up and manages profit

itability and cut costs, and manage profit for the group’s fiveplans for these subsidiaries.

core subsidiaries on a BU basis.
More specifically, the following management measures for

Allocation of Risk Capitaleach of the nine BUs are being implemented:

In an environment where the financial sector faces progres- Formulation of plans for gross profits, expenses and net

sive deregulation and globalization, and financial technology

business profits, and performance management.
 Allocation of management resources such as personnel,
investment, expenses and risk assets.
 Risk control and profitability assessment based on alloca-

grows in sophistication, financial institutions must strengthen
their profitability while managing various types of risk. In fiscal 2001, we introduced a management structure underwhich risk capital drawn from equity capital and othertion of risk capital.

sources is allocated to each BU, which then engages in busi-

Through these measures, we seek to optimize our busi-

ness activities within the limits of that risk capital.

ness portfolio and maximize group earnings. Further, each

Under this new framework, RAROC is used as a perfor-

branch, as well as each division responsible for business pro-mance index to evaluate the return on allocated risk capital.

motion, of the five core subsidiaries establishes and manages

We aim to improve capital efficiency by allocating resources

its own profit plan based on the profit plan and resource

more efficiently based on the results of these evaluations.

allocations drawn up by MHHD.
Glossary
Consolidated Profit Management
We manage the group’s profits on a consolidated basis as a

RAROC (Risk-Adjusted Return on Capital)
RAROC is a measure of the profitability of allocated capital and is used as anindex for assessing capital efficiency. RAROC is calculated by dividing riskadjusted profits (profits adjusted to reflect statistically expected risk) by capital.

means of constructing an optimal business portfolio that isbalanced and leads in each business sector.

Risk capital allocation

Allocation of risk capital to BUsManagement resources allocation function

Risk-based profitability assessments

Risk control function

Management to preserve allocated risk capital

MIZUHO 13

Management Strategy of Mizuho

 BUILDING A ROBUST FINANCIAL STRUCTURE
In addition to the competition between the so-called “Big Four” banking groups in Japan, the rivalry with other domestic andforeign financial institutions, including foreign institutions and newly emerging competitors from other sectors, is intensifying
all the more. In order to satisfy customers’ increasingly diverse and complex needs quickly and with precision in such a competitive environment, we must strengthen our earning power and promote cost cutting to build a robust financial structure worthyof a financial institution. Specifically, we have adopted the following measures.
 Boost Earning PowerStrengthen Domestic Commercial Banking Operations and Powerful Revenue Base We will work to increase lending to private and corporate customers by offering ample, high-quality funds to the widest possible customer base, while building up a stable fund-raising mechanism.
 We will strive to raise asset efficiency on loans by ensuring that pricing is properly matched to the credit risks involved.
 We will use IT and other tools to expand our range of convenient, low-cost channels in order to satisfy the diversifying, evermore sophisticated requirements of our customers quickly and precisely.
ATM Network of
the Three Banks

Outstanding
Balances ofResidential
Housing Loans

8.5•(trillion yen)

8.3•

(number of locations)

10,000•8.4•
8,000•

8.2•
6,000•

8.1•
8.0•

4,000•

7.9•
7.8•

2,000•

7.7•
7.6•

Mar. 2000

Sept. 2000

0•Mar. 2001

Mar. 2000

Mar. 2001

Mar. 2002

Mar. 2003*Number of locations where CDs and ATMs are situated, including ATMs inconvenience stores (E-net and others). The dotted line signifies expected
increase.

Fusing Enormous Customer Base with Fully Comprehensive Financial Services
 We are devoting a great deal of effort to strengthen our FT and IT to provide corporate customers at home and overseas withvarious solutions, not just in banking but also in strategic areas like securities, investment banking, asset management andtrust banking.
 We are promoting the private banking business through high-quality comprehensive group strengths and expert staff.

14 MIZUHO We have diversified and stabilized our profit structure to raise capital efficiency. In order to achieve this, we worked toincrease fee income from various sources such as foreign exchange and settlement-related business, as well as increase earnings in growth sectors such as investment banking, asset management and loan syndications.
Outstanding Balances of Investment Trusts

Arrangement of Domestic Syndicated Loans(trillion yen)(billion U.S. dollars)

Mizuho’s share: Approx. 47%(Calendar year)
50•

1.2•
1.0•

40•

0.8•

30•

0.6•

20•

0.4•

10•

0.2•
0•

Mar. 2000

Sept. 2000

Mar. 2001

Source: IFR database.

0•

1998

1999

2000

 Intensive Group-Wide Drive toward Rationalization and Higher Efficiency
 On the one hand, we are using IT to diversify and reduce the cost of our channels. On the other, we are steamlining domestic and overseas offices while giving top priority to customer convenience.
 We are also working to improve the efficiency of our human resources by thoroughly rationalizing all aspects of management.
Domestic and Overseas Offices

Number of Employees

800•

35,000•750•

34,000•700•

33,000•650•
32,000•600•
Overseas subsidiaries

31,000•550•

Overseas branches
Domestic branches

500•

Mar. 1999

Mar. 2000

30,000•Mar. 2001

Mar. 1999

Mar. 2000

Mar. 2001

 Asset Portfolio Management Approach We are striving to improve the health of our assets by carrying out strict assessments and making appropriate write-offs andreserves, as well as promoting the recovery and final disposal of non-performing loans.
 In order to avert price fluctuation risk, we have adopted efficient asset management methods that include sales of crossshareholdings.
Balance of Non-Performing Loans

Book Value of Stocks(Aggregate of Three Banks)(Aggregate of Three Banks)(trillion yen)(trillion yen)
6.0•

9.0•

5.5•

8.5•

5.0•

8.0•

4.5•

7.5•

4.0•

7.0•
6.5•

3.5•
*Under Financial
Reconstruction Law.

3.0•

Mar. 1999

Mar. 2000

Mar. 2001*Stocks of“Other Securities.”

6.0•

Mar. 1998

Mar. 1999

Mar. 2000

Mar. 2001

MIZUHO 15

CHAPTER 1

Improve Profit Structure and Raise Capital Efficiency through an Increase in Non-Interest Income

Management Strategy of Mizuho

 MEASURES TO ENHANCE CUSTOMER

Any expressions of dissatisfaction or criticisms received
from our customers are taken very seriously, and every effort

SATISFACTION (“CS”)
 Management Geared to Becoming “A Top

is made to provide appropriate solutions rapidly. Going one

Financial Group in Terms of Customer

step further, we regard our customers’ views as a manage-

Satisfaction”

ment resource, and incorporate them into our efforts to

We are working hard to establish the corporate culture of a

improve management quality throughout the group. To thiscustomer-oriented service business and ensure that employ-end, we conduct investigations and analyses to clarify theirees provide customers with the best available services at allunderlying causes, then feed the results back into the systemtimes. As a conduit to this end, we established the Customer

to devise preventative measures and assist in product devel-

Satisfaction Office in MHHD whose goal is to provide timely

opment and service improvements.

customer feedback that can be used quickly in productdevelopment and service enhancement.

Management Geared to Secure Top Ranking in Customer Satisfaction
Enhancing customer satisfaction and loyalty by providing the best-quality products and services
Customers
Establish two-way communications
with customers
Five Core Subsidiaries
MizuhoSecurities• Provide proposals and information quickly• Highly professional consulting services• Full-fledged business solution function

IBJ

Fuji Bank

DKB

Offer products and services of true value to customers

Mizuho Trust& Banking[Tools for collecting customer opinions]• Unified Customer Voice Cards• Customer Service Telephone Centers• Customer Satisfaction Surveys• Service Recovery Questionnaires

Mizuho Holdings
Customer Satisfaction Office[Messages to customers]• Improve business information development tools(Web site, direct mail, etc.)• Proactive public relations and advertising

Develop CS awareness among all group employees• Create cross-unit CS promotion structure• Implement CS training• Prepare common tools to improve CS
throughout the group• Incentive measures• Plan and execute group-wide measures toenhance customer satisfaction• Collect CS-related information andconduct theoretical research How Three “CSs” Can Engender a Fourthgroup on improving customer satisfaction and, in prepara-

We are convinced that customer satisfaction based on thetion for Phase 2 of the consolidation, to prepare common“three CSs” outlined below is essential for achieving a fourthcommunications tools that can be used in all aspects of cus-

CS—Company Success. The objective is to focus the entire

tomer relations.

 Customer-centric Sense:
Nurture a consistent, customer-oriented CS consciousness.
 Communication System:
Construct a framework for two-way communications with customers.
 Customer Strategy:
Provide valuable products and services through marketing activities.
16 MIZUHOCompany Success(Corporate prosperity and longevity)

TRANSFORM THE BUSINESS STRUCTURE

CHAPTER 1

 TAKING FULL ADVANTAGE OF IT AND FT TO

 Creating the “Mizuho e-business Model”(B2B, B2C, G2C, G2B)

As a front-runner in IT and FT, we are using IT to improve the

The creation of a new business model in the field of e-business

effectiveness and efficiency of our business strategies, estab-covers several areas. B2C involves Internet businesses such as

lish the “Mizuho e-business model,” and provide businessour “em-town” (see page 20) and card businesses using IC

solutions that fully exploit the capabilities of our FT. Throughcards. B2B involves corporate settlement and certificationthese activities, we will reform our internal business process-businesses such as trade finance EDI (electronic data inter-es, provide high-quality services that anticipate the needs ofchange) and electronic certification. G2C and G2B involve

the times and proactively develop new business models.

multi-payment network infrastructures such as electronic billpresentment and payment infrastructure. We are actively

 Using IT to Improve the Effectiveness andengaged in all of these sectors.

Efficiency of Business Strategies
We are concentrating our IT investments on strategically Business Solutions that Exploit FT Capabilities

important areas. To this end, we are taking the following

In addition to hedges against interest and exchange rate fluc-steps to create the infrastructure needed to support our busi-

tuation risk, there has been an increase in the number of risk

ness strategies:

hedging methods involving derivatives that utilize FT, including Build customer databases to support market strategies.

hedging against business risks borne by companies such as Build global risk measurement systems.

product price fluctuation risks and weather-related risks. We

 Build advanced systems to support domestic and overseas

are involved in developing high value-added financial products

trading activities.
 Build an information infrastructure to promote group-wideknowledge management.

and sophisticated risk assessment and management techniques in areas that require leading-edge FT such as derivatives, structured finance and asset management techniques, Alter platforms that employ the latest technologies as a

as well as credit risk, market risk and integrated risk manage-

means of building a systems infrastructure that offers

ment. In this way, we can provide finely tuned solutions tosuperior flexibility and cost-competitiveness, thus allowing

customers’ diversified and increasingly sophisticated needs.
p ga more dynamic response to new products and services.

Create a Business Model Proactive Pursuit of Business Model Patents
The remarkable progress in IT in recent years has fueled the creation of countless new business models, leading to a rapid increase in the number of applications for business model patents. The finance industry is no exception to thistrend, and patent applications for advanced financial business models are on
the rise, especially in the United States. We are also proactively applying forbusiness model patents pertaining to fund settlement systems and other areasof electronic commerce.

B2B+B2C+G2C G2B
Corporate Settlement/Certification
Trade Finance EDI/Electronic Certification
Alliances in the Marketplace

Wholesale
Domestic andGlobal CMS

em-town
Debit/IC Cards

Internet Business

Card Business

Multi-payment
Electronic Bill
Network
Presentment
and Payment
Infrastructure
Business Process Reengineering(BPR)

RetailInternet
Banking

Glossary
B2B=Business to Business, B2C=Business to Customer, G2C=Government toCitizen, G2B=Government to Business

MIZUHO 17

Management Strategy of Mizuho

 HIGH-QUALITY, HIGH-VOLUME INFORMATIONBASED ON ADVANCED ANALYTICAL

our customers with optimal business solutions on such issues
as follows:Business strategy and formation

CAPABILITIESThe changes affecting social, economic, financial and indus-

Business portfolio reconstruction

trial structures in Japan and around the world are enormous

Shareholder value analysis

and are occurring at an unprecedented pace. Against thisbackdrop, our highly specialized, professional research staff

 MHFG’s Think Tank Function

conduct independent analyses of high-quality, high-volume

Our research and consulting affiliate companies engage in

information gathered worldwide and support our customers

high-quality, practical consulting activities that support solu-

in making rapid and appropriate decisions by providing accu-

tions to a variety of management issues according to the circum-

rate assessments of their business environment. Our research

stances of individual corporate customers. They formulate

is characterized by the depth and breadth of its coverage.

management plans, operational and organizational reforms

The coverage, extending to every aspect of the business envi-and human resource policy as well as strengthen the man-ronment, includes:

agement and control structure. They also respond to diverse

Macro economy and micro economy

customer requirements through advisory services, seminars

Monetary policy and financial markets

and membership-based services. Professionals with expertise in

Financial policy and social policy

various fields provide advice by answering customers’ questions

Legislation and taxation

concerning matters ranging from taxation and legal prob-

This approach has earned us high praise because it allows

lems to management succession and personal tax matters.

accurate and rapid responses to the diversified and increasingly sophisticated needs of customers.

 Mizuho Securities Analysts Win High Ratingsfrom Institutional Investors Identifying Industry and Corporate Trends

As the result of the merger of DKB Securities, Fuji Securities

and Business Strategy Advisory Services

and IBJ Securities, Mizuho Securities analysts have strength-

Our industrial and corporate research section, based on theened their analytical capabilities to provide Japanese andanalysis of the current status, concerns and outlook for eachoverseas institutional investors with valuable information in aindustry, formulates forward-looking scenarios for industrial

timely manner.

structures and future business concepts for our customers.

Although these analysts have achieved high ratings in

Utilizing its analytical expertise and extensive networks, thepolls conducted by leading financial publications, they are

section also makes the invaluable contribution of providing

proactive in making every effort to expand the depth andbreadth of their coverage.

Analyst Ranking Surveys

Survey Sponsor (Name of ranking)Announcement date

Overall ranking(ranking among Japanese
securities companies)

Bond Analysts

Nikkei Newsletter on Bonds & Money(popularity survey of bond analysts and economists)

March 2001

2nd (1st)

4

Equity Analysts

The Nikkei Financial Daily(ranking of popular analysts)

April 2001

10th (3rd)27

Institutional Investor(All-Japan Research Team)

April 2001

11th (3rd)4Category

18 MIZUHONo. of Mizuho
analysts ranked

Consolidation Synergy of MIZUHOCHAPTER 2

Chapter 2
Contents
Development of the “em-town” Business

20

Strategy for the New Business Environment

22

Progress of Consolidation

26

MIZUHO 19

Consolidation Synergy of MIZUHO DEVELOPMENT OF THE “em-town” BUSINESS“em-town” Business Modelem-town (http://www.em-town.com) is an Internet bank-Tie-ups withpartner companies

EC Community

ing/shopping town managed and operated by The em-town
PCs/Software

ISP

TravelBooks

Tickets

Music

CDs

AdvertisingLife
insurance
Internetsecurities trading

Non-life
insurance

Trust
services

Securities
Definedcontribution
pensions

CreditConvenience
Stores
DeliveryServices

Customers

Tie-ups withpartner companies

industries under the leadership of MHFG.

Financial portals

Tie-ups with trading companies

Managed by
The em-town Corporation(portal company)

investment from 47 partner companies from a wide range of

Local
Specialties

Mail-order

Trading

Corporation, a portal company, which was established with

 The combination of a financial portal, EC Community andexclusive Internet banking services is an epoch-making
attempt at developing e-business unseen even in the U.S.
or Europe.

The em-town virtual shopping mall accommodates financial
institutions and around 70 merchants, including a wide

Settlement tie-ups(SET debit, bank transfers, etc.)

range of manufacturers, distributors, retailers and travel
agents. The choice ranges from financial products such as

Banking services
Managedby MHFGdeposits, loans, insurance and securities to a variety of con-

The em-town Branchsumer goods, including gourmet foods, fashion goods andSpecialist Internet banking service(Deposits, loans, fund transfers, etc.)

furnishings, electrical appliances, sporting goods, travel services, books and games. Customers can pay for their purchases through Internet banking at Fuji Bank’s exclusive

em-town Cash Card
The card can be used in automatedteller machines and cash dispensers
of financial institutions at 60,000
locations in Japan. Overseas, it canbe used in automated teller machinesdisplaying themark in over 100
countries.

My em-town Site

online em-town Branch (http://www.em-town-bank.com) orother Internet banking services of MHFG. These services support one-stop shopping using online debit settlements aswell as credit transactions and fund transfers. In addition, theem-town Branch offers a full range of banking services similar to those available at conventional branches, including
deposits, loans and investment trusts.
 em-town uses advanced IT to set new standards
in content and usability.

Users who register as em-town members access the service
via a members-only site called “My em-town.” This site canbe configured to provide personalized information based ondata previously registered by each user. One of the many
unique services offered by MHFG is money planning andanalysis tailored to personal life plans. Simply by entering theCash Flow Simulations
Based on the financial advisory
expertise of the three banks, thesystem features a wide array ofmenus, including cash flow simulations.

necessary information, the user can obtain a range of analyses, including future cash flow simulations, readouts of current asset portfolios, and insurance and pension simulations.
Of course, the privacy of every customer’s personal andfinancial information is carefully protected. Thanks to the useof powerful SSL 128-bit encryption, the level of security
throughout the em-town complex is extremely high.

20 MIZUHOThe Making of em-town
The unique concepts used in the development and operation ofem-town represent a radical departure from earlier B2C busi-

 The most important feature of em-town is its business model, which differs
totally from Web services developed by banks in the past.

Announcing em-town at a press conference

The development of em-town was guided by an awareness that a business model
based on pure Internet banking is not necessarily the most efficient and logical approach. Setting up a new exclusive
Internet bank and building the systems necessary to ensure that it delivers full-banking functions would take an enormous
amount of time and money. We, therefore, adopted the “exclusive Internet branch” concept rather than the “exclusive
Internet bank” concept because it allows us to use existing systems and know-how with maximum efficiency and effectiveness. Moreover, we believed that running an all-round portal site that offers a shopping mall, as well as banking functions, would enable us to answer a wider range of customer needs. Carrying out joint marketing activities together with
our partners also delivers greater efficiency and effectiveness in terms of cost and speed.
Our em-town operations are thus designed to pass on the benefits of cost reductions tocustomers to the maximum extent possible.
 The time actually spent preparing for starting up em-town was just four months. Looking
ahead, em-town will continue to change. This ability to evolve through rapid adaptation
to the changing needs of the times is one of the concept’s greatest strengths.

From the establishment of The em-town Corporation on September 20, 2000 to the startup of the em-town site on January 31, 2001 took just 132 days. During that time, the business model was finalized, systems were designed and built, and contents developed. Of
course, this achievement would not have been possible without the cooperation of partnercompanies, especially partners in the high-tech industry. We believe it is essential to beable to act quickly in the Internet era. At em-town, the emphasis is on menus that offer
users higher value-added, and on the continuous availability of services. Our commitment
to improve services is clearly demonstrated by em-town’s user-friendly screens. Another“em-town’s mission is to offer
customers services that provide
genuine value. We have achieved
this goal by building allianceswith a wide range of partnercompanies.”—Tadashi Katagiri, President,
The em-town Corporation

characteristic is the promotion of innovative marketing methods such as the em-town auction system with its highly original content. em-town will continue to set new standards inservice innovation.
 The em-town Branch is accessed by customers who represent a completely different groupfrom traditional users of Internet banking services.

It used to be that Internet banking was used mainly by businessmen in their 30s and 40s.
The em-town Branch has attracted customers across a much wider range of age-groups.
Increasingly, people in areas where there are no MHFG branches are establishing accounts
in the em-town Branch. Under the leadership of the branch manager, the expert staff“The challenge that we face
every day is to develop a newfrontier in customer communications. What we are doing isbeyond the experience of conventional banks.”—Junko Watanabe, General
Manager, em-town Branch

respond to a wide range of customer inquiries by e-mail and telephone. In the world of theInternet, there is a tendency for businesses to lose sight of their customers due to excessive
reliance on impersonal systems. The em-town Branch aims to strengthen one-to-one communications with its customers by providing personal services that add a touch of reality tothis virtual environment.

MIZUHO 21

CHAPTER 2

ness models. The following section covers them in more detail.

Consolidation Synergy of MIZUHO STRATEGY FOR THE NEW BUSINESS

services business. In addition, the synergies achieved by combining the human resources and knowledge of the partici-

ENVIRONMENT Joint Asset Services Business, Including

pating companies will allow Trust & Custody Services Bank tobuild a sophisticated asset management infrastructure andMaster Trust Operations
Trust & Custody Services Bank, Ltd., established in January 2001,
starts operations.

offer superior products and services to a wide range of customers, including Japanese institutional investors.

Establishment of Trust & Custody Services Bank
The three banks of MHFG and Mizuho Trust & Banking,Trust & Custody Services Bank’s business operations

along with four life insurance companies (The Asahi Mutual

Trust & Custody Services Bank initiated the development ofLife Insurance Company, The Dai-ichi Mutual Life Insurance

its master trust operations with the introduction of informa-

Company, The Fukoku Mutual Life Insurance Company andtion-consolidating services in February 2001. Also in February

The Yasuda Mutual Life Insurance Company), reached agree-

2001, it began to offer fiduciary services, including custody

ment on the development of a joint business in the area ofand settlements, for securities held by life insurance compa-

asset services business, including master trust operations.

nies, as part of its securities-related asset services. It will take

Trust & Custody Services Bank was established in January

over the custodial services of Mizuho Trust & Banking start-

2001 for this purpose under the joint ownership of Mizuho

ing from the second half of fiscal 2001. In fiscal 2002, Trust

Trust & Banking and the four life insurance companies.

& Custody Services Bank plans to offer full securities management, including accounting services, for life insurance

Basic Strategy of Trust & Custody Services Bank

companies. At the same time, it aims to expand its business

The outsourcing needs of such customers as Japanese insti-

by offering asset services business to a wide range of cus-

tutional investors are becoming increasingly sophisticatedtomers, including Japanese institutional investors.

and diverse. This reflects the growing importance of administrative rationalization, and the need to adapt efficiently andappropriately to various changes, in the asset services business,
including the introduction of market value accounting andsecurities-settlement system reform. Trust & Custody Services
Bank was established jointly with MHFG and the four life
insurance companies for the purpose of maximizing scale
merits and cost-competitiveness by integrating their asset

Glossary
Securities-Settlement System Reform
The Japanese securities market is seen to have fallen behind European and
U.S. markets in terms of market systems. The Financial System Council of the
Ministry of Finance and the Japan Securities Dealers Association (JSDA) studied
the issue in 1999. The results of their deliberations form the basis of the system reform program now under way. The key features of this reform process
are the introduction of DVP (Delivery versus Payment) settlements, whereby
the securities and funds involved in a transaction are settled simultaneously,
and T+1 settlements (settlement on the day after the transaction date).

Tie-ups with Four Insurance Companies’ Asset Services Business
MHFG

Asahi
Mutual Life
Insurance(DKB, Fuji Bank, IBJ)

Mizuho Trust & Banking

Dai-ichiMutual Life
Insurance

FukokuMutual Life
Insurance

YasudaMutual Life
Insurance

Trust & Custody Services Bank, Ltd.

Master Trust Business Provision of high value-added information (information integration
services, investment evaluations, risk management) Securities management (custody/settlement, accounting) Efficient asset management (securities lending, investment)

Asset Administration
 Administration of securities assets• Administration of life insurance companies’ securities holdings(custody/settlement, accounting)• Securities administration of pension trusts, specified money trusts, investment trusts• Custody business Asset administration for defined contribution pension plans

22 MIZUHO Establishment of Mizuho Venture Fund

Defined Contribution Plan Services Co., Ltd. was established in
September 2000. Its aim is to become a front-runner in the defined
contribution pension market when the new system is expected tostart in Japan in October 2001.

With maximum assets of ¥30 billion, the Mizuho Venture Fund is
one of the largest funds of its type in Japan. It has already invested¥9.3 billion in four individual funds.

There is growing interest in the defined contribution pension

the three banks. With maximum assets of ¥30 billion, it

plan, both as an effective way to improve corporate employ-ranks among the largest funds of its type in Japan. It has

ee welfare plans and reform personnel and pension systems,

already invested ¥9.3 billion in four individual funds and isand as a new retirement fund building tool for individuals.

helping to discover and nurture the new businesses, venture

We are determined to become a leader in this field and webusinesses and high growth and emerging markets that will

have channeled maximum resources and energies into realiz-play a leading role in the 21st century.

The Mizuho Venture Fund was established in May 2000 by

ing this goal. Top-class consulting companies of MHFG assist
corporate customers to design schemes for the introduction
Mizuho Venture Fundof defined contribution pension plans. Defined Contribution
Plan Services was established jointly with four life insurancecompanies (Asahi Mutual Life Insurance, Dai-ichi Mutual Life

Establishment of multiple funds under Mizuho Venture Fund(joint venture of the three banks),
each fund managed under different investment aims
and concepts (e.g., target industry, growth stage)

Insurance, Fukoku Mutual Life Insurance, and Yasuda MutualLife Insurance) in September 2000. It uses a call center, the

DKB

Fuji Bank

IBJ

Investment

Investment

Investment

Internet and other methods to provide convenient support
services, including educational tools, for individuals who wish
to join such plans. In cooperation with various group affiliates, including asset management companies in MHFG, itoffers a wide range of investment products to meet the various asset-building needs of customers who have joined theMizuho Venture Fund
Investment

Investment

Investment

Investment

New businesses in IT, biotechnology, environment, etc.
Fund A

Fund B

Fund C

Fund Dplans. Both corporate and individual users of the defined contribution pension plans benefit from this integrated, grouplevel approach.

Web pages of Defined Contribution Plan Services (DCPS)MIZUHO 23

CHAPTER 2

 Defined Contribution Pension BusinessConsolidation Synergy of MIZUHO Establishment of Real Estate Fund
Preparations for launching of fund and listing on Tokyo Stock Exchange (“TSE”).
This real estate fund is a Japanese ver-Real Estate Fundsion of the real estate investment trust
Equity contribution,
dispatch of personnel

Mitsui
FudosanWincome
Property TrustManagement

Primarily offers real estatereferral andmanagement
Real estate trusts
functions

Equity contribution,
dispatch of personnel(REIT). To set up this fund, MHFG and
MHFG

Mitsui Fudosan Co., Ltd. jointly established Wincome Property Trust Manage-

Primarily offers financial
functionsment Co., Ltd., a fund managementcompany, in October 2000. Preparations
are now under way for the rapid start-(Real estate owners)
Life insurance
Real estate companies
Corporations
OthersTrust banks

Real estate funds(investment trusts)

up of the fund, along with the prepa-

TSE listingration for the listing of its equities on
the TSE.
The fund will be able to draw on
the total resources and capabilities ofLife
insurance

Real estatecompanies

Pensionfunds

Institutional
investors

MHFG as it works to expand andIndividual
customers,
etc.

enhance its products to meet theneeds of corporate and individual customers. We will also work to play acore role in sound market formation.

 Trade Finance Electronic Data Inter-change (“EDI”)
World Gateway Inc. was established in April 2001. It is now working in partnership with trading companies and other organizations
toward the early implementation of trade finance EDI.
EDI allows different companies toTie-up with Trading Companies in Trade Finance EDI

exchange orders and invoices, by elecMHFG

ItochuCorporation

Marubeni
Corporation

Systemvendors, non-life
insurance companies, shipping
companies,etc.

tronic means, using standardized formats. We established World Gateway
in April 2001 through a joint invest-

EDI infrastructure

Customers'clients

Provide inter-company EC transaction
services using the Internet, etc.
 Trade-related Document Preparation
Service
 ASP
 Trade finance EDI connection services
 Other value-added services

 Electronic documentation
 Seamless distribution to settlement process using the Internet
 Increase in foreign exchangetransactions

24 MIZUHOOutlookConnection

BOLERONet

Corporations (customers)

ment with trading companies andWorld Gateway(Joint operating company established April 2001)

Europe’s first global
trade finance
EDI project

TEDI
Original Japanese tradefinance EDI project,supported by the Ministryof Economy,
Trade and Industry (METI)

other organizations. The new company
will help to accelerate the introduction

Shipping
companies
Non-life
insurancecompaniesof trade finance EDI services and toensure that customers’ trade transactions
are completed promptly and safely.

Banks

 Provide domestic distribution services
 Provide marine insurance services, etc.

Glossary
ASP (Application Service Provider)
An Internet service that provides businessrelated applications for use by companies.

 Identrus Electronic Certification Service
Responding proactively to growing security needs fueled by expansion in e-business.

leading financial institutions and was
Identrus Root

established to provide general-purpose
Certificate issuancesolutions to security needs relating to

Certificate issuanceB2B transactions over the Internet.

3) Validation request

Buyer’s BankMHFG is a partner in Identrus and isSeller’s Bank

actively working to establish electronic
Certificate issuance

Certificate issuance2) Validation
requestMHFG is also developing applications

1) Transaction

Buyer’s Web Browser

certification services.

Seller’s B2B Web Sitethat provide payment and credit functionality on this electronic certification
platform.

 Mizuho Advanced CMS
Centralized cash management enables corporate groups to improve the efficiency of group-level financial operations and administration.
FeaturesThe

introductionofconsolidated

 Deposit and loan balance management and interest pooling.

accounting has created a rapidly grow- Intra-group cash netting.

ing need for systems to improve the Centralized statements of accounts payable (agency payment services).

efficiency of cash management at the Processing of group company cash flow requests and forecasting of total group

group level, especially within large corporate groups. More and more com-

cash flows (cash flow management).

panies are looking into establishing
financial subsidiaries or introducing
netting and similar procedures. We
have responded to this need by jointly
developing a new type of cash management service (CMS). The new service was launched in December 2000
as the Mizuho Advanced CMS.
This system allows corporate groups
to improve their financial efficiency
Mizuho Advanced CMS Web pages

and reduce transfer charges by netting
deposits and loans among group companies. Participants also benefit from an
improvement in administrative efficiency
through centralized administration.

MIZUHO 25

CHAPTER 2

Identrus is a consortium of the world’s

Identrus System

Consolidation Synergy of MIZUHO PROGRESS OF CONSOLIDATION
 Consolidation of Overseas Subsidiaries, Accelerated Consolidation of Overseas Branches
To realize the synergies arising from consolidation as quickly

We are making steady progress in consolidating our over-as possible, we initiated efforts to consolidate our overseas

seas branches and subsidiaries, and expect to complete con-operations in October 2000. As of July 31, 2001, we hadsolidation of all our overseas operations by April 2002.

completed the consolidation of three branches, one representative office and eight subsidiaries.

MHFG’s Consolidated Overseas Offices

Dai-Ichi Kangyo Bank Düsseldorf Branch (June 2001)
Mizuho Capital Markets (UK) Limited(January 2001)

Mizuho Bank Nederland N.V. (October 2000)
Mizuho International plc(December 2000)

Mizuho Bank (Schweiz) AG (October 2000)

Fuji Bank Paris Branch(June 2001)

Mizuho Capital Markets (HK) Limited
Mizuho Trust & Banking (Luxembourg) S.A.

(January 2001)(October 2000)

Fuji Bank Kuala Lumpur Representative Office(March 2001)

Fuji Bank Labuan Branch(includes the Kuala Lumpur Marketing Office)(March 2001)

26 MIZUHO Establishment of Mizuho Trust & Banking

Mizuho Securities was launched on October 1, 2000 throughMizuho Trust & Banking was launched on October 1, 2000

the merger of The DKB Securities Co., Ltd., The Fuji Securities

through the merger of Dai-Ichi Kangyo Fuji Trust & Banking

Co., Ltd. and The IBJ Securities Co., Ltd.

with IBJ Trust & Banking.

In addition to responding to customers’ financing and

Mizuho Trust & Banking specializes in corporate trust

investment needs through underwriting and selling corpo-banking business, and boasts a strong financial structure andrate bonds and stocks, we are working to promote a dynamic

a high degree of expertise. It provides high-level consulting

fusion of these activities with our investment banking ser-services using the latest technologies and systems, andvices using sophisticated FT such as structured finance busi-

know-how and services backed by a high degree of trans-

ness and M&A. In this way, we are aiming to create the first,

parency and top-quality back-office systems. It also intends tofully fledged Japanese-style investment bank to resolve themaintain its high credit ratings and take a stategic approachcustomers’ issues in the areas of business and financial strategy.

to securing business in key areas as part of its effort tobecome a trust bank specializing in corporate business
whose strengths and excellence are truly of world standards.

Main Businessesof Mizuho Securities Bond trading Equities trading Investment banking
 Debt financing
 Equity financing
 IPOsMain Businessesof Mizuho Trust& Banking Pension trust Asset management services
 Custodial services
 Stock transfer agency services
 Securitization services

Mizuho Bank (Canada) (November 2000)

Mizuho Capital Markets Corporation (January 2001)

Branches and marketing offices
Representative offices
 Overseas subsidiaries* Date of consolidation in parentheses.

MIZUHO 27

CHAPTER 2

 Establishment of Mizuho Securities

Consolidation Synergy of MIZUHO Reorganizing Investment Banking
Operations
On May 1, 2001, we reorganized our investment banking
business structure, including our advisory activities in areas
such as M&A, securitization and liquidation arrangementbusiness, and our business in the area of arranging leases
and other financial products. These businesses that had beenhandled by the three banks were relaunched under the aegis
of Mizuho Securities, which now offers a full range of key
investment banking services.
The three banks and their affiliates will continue to handle
business related to asset-backed commercial paper (ABCP),
finance for acquisitions (including MBOs) and business associated with non-recourse real estate loans.
(Please refer to page 51 for details on MBOs.)

Reorganizing Investment Banking Business Structure

Mizuho Securities

Three banks and their affiliates

 Securitization/liquidation arrangement business Other treasury product arrangement business Advisory business such as M&A
 Securitization arrangement business
BeforeReorganization

 Lease and other treasury product arrangement business ABCP-related business Business related to acquisition finance(including MBOs)
 Non-recourse real estate loan-related businessMizuho Securities

Three banks and their affiliates

 Advisory business such as M&A
 Securitization/liquidation arrangement business Lease and other treasury product arrangement business

28 MIZUHO

After
Reorganization

 ABCP-related business Business related to acquisition finance (including MBOs)
 Non-recourse real estate loan-related businessEvolution of MIZUHOCHAPTER 3

Chapter 3
Contents
Business Model for Phase 2 (from April 2002)

30

Overview of Mizuho Bank and Mizuho Corporate Bank

32

What’s Phase 2?

34

Human Resources System for Phase 2

38

MIZUHO 29

Evolution of MIZUHO BUSINESS MODEL FOR PHASE 2(FROM APRIL 2002)

Attaining a high degree of expertise
In addition to offering comprehensive financial services, a Consolidation into Legally Separate Subsid-high degree of expertise is necessary if we are to take fulliaries According to Customer Segments andadvantage of our scale and extensive transactional relation-

Business Lines

ships with customers and create a truly powerful financial

Subject to approval from the appropriate regulatory authori-group.

ties, we will consolidate and reorganize our existing opera-

Such expertise includes leading-edge financial technology

tions into legally separate subsidiaries under MHHD according

and know-how, a sales approach that delivers meticulous

to customer segments and business lines on April 1, 2002.

customer service and develops and cultivates close transac-

Through a process of the corporate splits and merger, thetional relationships and the ability to provide products that

operations of DKB, Fuji Bank and IBJ will be consolidated andrespond to customer needs.

reorganized into Mizuho Bank and Mizuho Corporate Bank.

We aim to become a comprehensive financial services

Mizuho Bank’s customer base will mainly consist of indi-group that offers accurate and rapid responses to customer

viduals, domestic companies and local governments. Mizuho

requirements by ensuring that group companies enhance

Corporate Bank will primarily serve major corporations,

their expertise and provide high value-added financial ser-financial institutions, their group companies, national gov-

vices on the one hand and reinforcing cooperation among

ernmental public sector entities and overseas corporations.

group companies on the other.

Mizuho Securities and Mizuho Trust & Banking will also
become direct subsidiaries of MHHD.
 Rapid Progress in Strengthening Ability to
Adapt to the Management Environment andRespond to Customers
Creating a flexible, speedy and versatile management
structure
During the next five to ten years, economic, financial andmarket structures are more than ever likely to undergo majorchanges that will transcend national borders. To cope withsuch major environmental changes head-on, a company’s
management structure must be flexible, speedy and versatile.
We have adopted a management structure whereby operations are consolidated and reorganized into legally separate
subsidiaries according to customer segments and businesslines. We believe this allows greater flexibility in dealing withthe ever-changing business environment and is the mostdesirable business model in light of the scope and scale of ourbusiness.

30 MIZUHOGlossary
Corporate Split
A corporate split is a legal framework whereby a company transfers all or partof its business to another company. Introduced through revisions of theJapanese Commercial Code in 2000, this method of restructuring companies
is designed to facilitate corporate reorganization and increase international
competitiveness.

Business Model: Core Companies of MHFG

Mizuho Holdings

Mizuho Holdings

April 1, 2002:
corporate splits
and merger
DKB

Fuji Bank

Mizuho Bank

IBJ
Mizuho Corporate BankCHAPTER 3

Mizuho Securities

MizuhoSecurities

Mizuho Trust& BankingMizuho Trust & Banking

Other Financial Subsidiaries* The corporate splits and merger process scheduled to take effect
April 1, 2002 is subject to the approval of the regulatory agencies
in Japan and abroad.

In Phase 2 (from April 2002), core group companies—Mizuho Bank, Mizuho Corporate Bank, Mizuho Securities and Mizuho Trust & Banking—will each provide high value-added financial services to customers as subsidiaries of Mizuho Holdings.
The group will enhance its comprehensive financial service capabilities by strengthening synergies among these companies.

 Features of Mizuho Bank and Mizuho
Corporate Bank

Mizuho Corporate Bank
Mizuho Corporate Bank’s goal is to become the premier pro-

Mizuho Bank

fessional bank in the domestic and international corporate

Mizuho Bank aims to become Japan’s most powerful com-finance markets, accurately responding to the increasingly

mercial bank by providing comprehensive, high value-added

diverse and sophisticated financial needs of customers byfinancial services as the customers’ bank of choice and thetaking full advantage of leading-edge IT and FT to provide

best business partner. Specifically, for individual customers,

world-class business solutions. Specifically, Mizuho Corporate

in addition to products and services they already enjoy, andBank will engage aggressively in project financing, MBO

with membership banking services at its core, Mizuho Bankfinancing, securitization and other areas of the investment

will offer highly convenient services for each customer. It willbanking business, as well as asset management functions

also take advantage of the group’s all-round capabilities tosuch as services related to defined contribution pension plansprovide highly specialized private banking services.

(the Japanese equivalent of 401(k)). Mizuho Corporate Bank

Corporate customers will benefit from a smooth and sta-

will strengthen its activities in such cross-border businesses

ble supply of high-quality funds. Furthermore, Mizuho Bank

as state-of-the-art funding and securities settlement services

intends to provide leading-edge business solutions that match

utilizing a next-generation clearance and settlement infra-

the business strategies of each customer. The products andstructure, as well as in the syndication business and otherservices to be offered will include syndications, derivatives,various arrangement businesses.

support for IPOs and business information support. Mizuho
Bank also intends to increase its efforts to support thegrowth of new businesses and venture companies.

MIZUHO 31

Evolution of MIZUHO OVERVIEW OF MIZUHO BANK AND MIZUHO CORPORATE BANK

Mizuho Bank(MHBK)

Customers

Individuals

Domestic Companies

Local Governments

Businesses

Businesses conducted by MHBK and MHCB deposits, bank debentures, lending(incl. non-recourse loans,
commitment facilities)
 foreign exchange derivatives
 payment and settlement services(bill / check clearing, payment andothers) e-solution business(firm banking, CMS, debit cards)
 corp. bond trustee services
 investment trusts, defined contribution pension business treasury
 syndicated loans others

Businesses conducted by MHBK consumer loans(housing/educational, etc.)
 personal credit cards
 loyalty program (membership services)
 company-sponsored employeebanking services (savings / loans) channel marketing-based services(ATMs, Internet, etc.)

 “em-town Branch”(an Internet-based virtual branch) private banking
 T/C, foreign currency exchange bill clearing agent
 a designated financial institutionof local governments
 lottery services
 others

Mizuho Securities

32 MIZUHO

Syne

Mizuho Corporate Bank(MHCB)

CHAPTER 3

Overseas Corporations(including subsidiaries of Japanese corporations)Customers

Large Corporations • Financial Institutions

National Governmental Public Sector Entities deposits, bank debentures, lending(incl. non-recourse loans,
commitment facilities)
 foreign exchange derivatives
 payment and settlement services(bill / check clearing, payment andothers) e-solution business(firm banking, CMS, debit cards)
 corp. bond trustee services
 investment trusts, defined contribution pension business treasury
 syndicated loans others

Businesses

Businesses conducted by MHBK and MHCB

Businesses conducted by MHCBrgy

 overseas business• deposits, lending• syndicated loans• project finance• MBOs, LBOs
• leasing, trade finance, etc.
 cross-border business• custody business(for non-resident entities)• offshore loans, etc.

 various clearing services• foreign exchange/yen settlement• CLS (simultaneous multi-currency
settlement), RTGS others

Mizuho Trust & Banking* The corporate splits and merger process scheduled to take effect April 1, 2002 is subject to the approval of the regulatory agencies in Japan and abroad.
MIZUHO 33

Evolution of MIZUHOW h a t ’s P h a s e 2 ?
 QUESTIONS CONCERNING THE OVERALL BUSINESS MODEL
Question 1
What types of customers will Mizuho Bank and Mizuho Corporate Bank serve?
Mizuho Bank’s main customers will be individuals, domestic companies and local governments, and it
will be one of Japan’s leading banks in terms of assets. Its customer base will far outstrip those ofother banks because it will lead the industry in terms of both the number of corporate clients and thenumber of personal accounts.
Mizuho Corporate Bank will focus on corporate finance, primarily serving companies listed on thefirst sections of domestic stock exchanges and other major corporations, financial institutions, theirgroup companies, national governmental public sector entities as well as overseas corporations andoverseas subsidiaries of Japanese corporations. It will have an enormous customer base, extendingloans to about 70% of listed companies in Japan and serving as main bank to about 40% of them.
Overseas, it will do business with about 70% of the Fortune 500 companies.
Question 2
Why launch two separate banks, Mizuho Bank and Mizuho Corporate Bank?
Our objective in launching two banks is to realize the ideal management profile for a financial institution that boasts the world’s largest asset base and, above all, our aim to develop closer relationships
with our customers by providing meticulously tailored services. Our goal is to become a comprehensive financial services group that delivers a high degree of expertise in meeting the demands of eachcustomer and business sector.
We will take full advantage of each bank’s capabilities to satisfy the increasingly varied and complex needs of our customers with unprecedented speed and exactitude.
Question 3
What benefits can investors expect from the consolidation and reorganization in April 2002?
The April 2002 consolidation and reorganization will establish four key pillars to support the group’sbusiness strategy, launching Mizuho Bank and Mizuho Corporate Bank and aligning Mizuho
Securities and Mizuho Trust & Banking as subsidiaries, all under the direct control of Mizuho
Holdings.
These four core subsidiaries will provide customers with high value-added financial services.
Moreover, the group will strengthen cooperation among the four core subsidiaries and focus thecapabilities of all group companies on becoming an innovative financial services group that will leadthe new era through cutting-edge comprehensive financial services and enjoy an overwhelming

34 MIZUHOcompetitive advantage over other financial groups. All these efforts are designed to meet investors’
expectations by enhancing enterprise value.
Question 4
Why utilize the legal framework for corporate splits in the April 2002 consolidation and reorganization?
We decided to utilize the corporate splits and merger method to achieve the planned large-scale corporate reorganization of the three banks into two banks under MHHD according to customer seg-result of changes in the Japanese Commercial Code in 2000.
A corporate split is a legal framework whereby a company transfers all or part of its business toanother company. It differs from the transfers of business used in previous corporate splits because it
does not involve procedures for transferring individual rights and obligations. This system was introduced recently in April 2001 to facilitate corporate restructuring and increase the international competitiveness of corporations, and since it was created in response to strong requests from thebusiness community, many companies are expected to take advantage of it. We are confident thatthe corporate splits and merger method used by MHFG will serve as an exemplary case study of thesystem in action.
Question 5
I hold shares in Mizuho Holdings. What sort of procedures will I have to go through as a result of the corporate splits and merger of the threebanks?
The shares issued by the three banks involved in the corporate splits and merger are entirely held by
MHHD, which is the three banks’ holding company. Investors who hold shares in MHHD will not haveto do anything as a result of the corporate splits and merger of the three banks.

Question 6
What is the schedule for the corporate splits and merger?
First, we need to obtain approval for the corporate splits and merger from the shareholders of DKB,
Fuji Bank and IBJ at each respective bank’s shareholders’ meeting. Then after we receive the approvalof the appropriate financial authorities in Japan and other related countries, we plan to register the
corporate splits and merger on April 1, 2002, on which date Mizuho Bank and Mizuho Corporate
Bank will commence business.

MIZUHO 35

CHAPTER 3

ments. This type of corporate reorganization, which was difficult in the past, was made possible as a

Evolution of MIZUHO QUESTIONS CONCERNING DOMESTIC INDIVIDUAL CUSTOMERSQuestion 7
Which bank will handle my transactions?
From April 2001, Mizuho Bank will handle products and services for individual customers, and, basically, there will be no changes in transactions currently being conducted by customers. Furthermore,customers of the three banks already enjoy free reciprocal ATM access, and we aim to increase theexcellent lineup of products and services after Mizuho Bank starts operations.
Question 8
How will my transactions be transferred to the new bank? What procedures will I have to complete?
In the case of corporate splits, a company’s businesses are divided and the assets and liabilities to betransferred are inherited by another company in their entirety. Transactions of individual customers
will be transferred in their entirety to Mizuho Bank; therefore, in principle, no transfer procedures arenecessary for individual customers. However, customers may be notified of and asked to complete
certain formalities as a result of changes in branch names and branch code numbers. We ask for thecustomer’s understanding and cooperation in such cases.
Question 9
Will I be able to utilize products and services that are currently offered by the three banks, such as deposits, loans and bank debentures, evenafter the consolidation?
Yes, customers can continue to utilize these products and services at Mizuho Bank after the consolidation. However, customers should be aware that there may be cases where the content of someproducts and services may be changed coinciding with the consolidation. Customers will be notifiedof changes and we will make every effort to not inconvenience our customers.
With regard to bank debentures, designated branches of Mizuho Bank will offer this product andcustomers will be notified of the location of such branches at a later date.
Question 10
What benefits will banking with Mizuho Bank bring?
Mizuho Bank will strive to deliver long-term customer satisfaction by offering the best possible products and services for each individual customer. Specifically, we will continue to create attractive products and services such as membership banking services and lending programs while establishing an
operating structure that can respond to customer needs rapidly and with precision. We will enhance
our efforts to raise customer satisfaction levels through greater convenience by providing services
through our vast nationwide network, which consists of manned branches, more than 1,100 fully
automated service centers, ATMs located in convenience stores and an Internet branch.

36 MIZUHO QUESTIONS CONCERNING DOMESTIC CORPORATE CUSTOMERSQuestion 11
How will the business with corporations being handled by the three banks be transferred to Mizuho Bank or Mizuho Corporate Bank as aresult of the corporate splits and merger?
The three banks will be reorganized into Mizuho Bank and Mizuho Corporate Bank based on cus-

Taking advantage of the changes to the legal framework for corporate splits that went into effectin April 2001, we will consolidate and reorganize our banking operations into two banks. Mizuho
Bank’s main corporate customer base will comprise domestic companies and local governments.
Mizuho Corporate Bank, on the other hand, will primarily serve major corporations, financial institutions, national governmental public sector entities and overseas corporations.
Question 12
Will we be able to bank with both the new banks?
In principle, one of the two banks will be responsible for a customer’s entire business. However, taking into consideration customer convenience, there will be cases where customers will have transactions with both banks depending on the nature of the transactions involved. For example, Mizuho
Bank customers can deal in euro-yen impact loans and other overseas transactions with Mizuho
Corporate Bank, while Mizuho Corporate Bank customers’ branches can deal in transactions with
Mizuho Bank in certain cases.
Question 13
Won’t launching the new banks result in lower quality services?
Both Mizuho Bank and Mizuho Corporate Bank will take full advantage of leading-edge financial
technology and expertise in their respective business sectors to provide customers with better quality
services than ever. We will also strengthen the cooperative relationships between the group’s coresubsidiaries, including Mizuho Securities and Mizuho Trust & Banking, focusing the overall capabilitiesof all group companies on providing high value-added, high-quality comprehensive financial services.
We are therefore confident that we can deliver very high levels of customer satisfaction.
Question 14
Mizuho Bank has no overseas offices. Won’t this be inconvenient for a company like ours that does business with Mizuho Bank?
The group’s overseas operations will include branches, marketing offices and subsidiaries of Mizuho
Corporate Bank. Mizuho Corporate Bank will operate in 17 locations in Japan and over 50 locations
overseas, covering all major cities around the globe. We plan to establish a structure that will provide
powerful support for our customers’ global business endeavors.
Although Mizuho Bank’s customers will be asked to do business with Mizuho Corporate Bank
when dealing with the group’s overseas branches, subsidiaries and affiliates, as well as conducting
international business like euro-yen transactions, all current services will remain available and customers will in no way be inconvenienced. Mizuho Bank will continue to act as the domestic point ofcontact for Japanese customers with business overseas, and it will endeavor to provide even higher
levels of service in the future.

MIZUHO 37

CHAPTER 3

tomer segments.

Evolution of MIZUHO HUMAN RESOURCES SYSTEM FOR PHASE 2
Vision for Human Resources: ROE on Human Resources Investment
MHFG and its employees set a shared vision for human resources as follows:‘We promote the “ROE” principle for human resources with a view to lasting value creation and create an attractive and fulfilling working environment for employees.’
In this vision, “ROE” stands for the following:
Responsibility: Observe the principles of independent judgement and self-accountability.
Opportunity:

Provide equal opportunity.

Employability: Develop expertise to enhance competitiveness.
Optimize uniqueness of group companies and synergies
Essenceof HumanResources
System

A compensation system linked to job and performance
Provide “Professional Career Path”

Optimize uniqueness of group companies and synergies
Employees will be employed by one of the group companies, in order that we can create a group of specialists that can deliver
maximum innovativeness and speed for actions and decisions. At the same time, we will maximize synergies between personnel
and promote optimal human resources allocation across group companies, which will be facilitated by the common basic compensation system (Common Platform for Human Resources).
A compensation system linked to job and performance
We will introduce a compensation system linked to job and performance.
As for salaries, we will pay according to job grade that is determined by job responsibilities and other factors.
As for retirement benefits, we will introduce a combination of “basic retirement benefits” (based on job grades) and “performance-based retirement benefits.”
Provide “Professional Career Path”
We will design multi-featured compensation systems that meet the needs of employees and an increasingly fluid labor market.
One example is the Professional Career Path with a salary system that is in line with market standards.
Common Platform for Human Resources
MizuhoHoldings

MizuhoBank

MizuhoCorporate
Bank

MizuhoSecurities

Mizuho Trust& Banking

Management-class platform (stock options, etc.)
Reflect the independenceof each group company
through market pricing,risk/return structure
and value-added

Promote cross-company personnel exchanges using a portable retirement benefits system, etc.,
while maintaining the culture and autonomy of each group company

Proactive personnel exchanges across group companies
Welfare benefits platform(health insurance association, employees’ pension funds, cafeteria plan, etc.)
Human resources framework platform(career paths, job groups, job grades, group internal recruiting system, etc.)

38 MIZUHOCommon Platform

Business Strategy of MIZUHOCHAPTER 4

Chapter 4
Contents
Consumer and Private Banking Business Unit

40

Small Business & Middle Market Banking Business Unit

42

Corporate and Financial Institutions Banking Business Unit

44

Public Sector Banking Business Unit

46

International Banking Business Unit

48

Securities and Investment Banking Business Unit

50

Trust and Asset Management Business Unit

52

e-Business and Global Transaction Services Business Unit

54

ALM and Trading Business Unit

56

Business Topics

58

MIZUHO 39

Business Strategy of MIZUHOC

onsumer and P rivate Banking
Business Unit

The BU for individual customers.

We aim to become the consumers’ bank of choice by providing themwith the highest level of satisfaction throughout their lives.
 BASIC STRATEGY
Become the leader in the consumer and private banking sector
1) Developing relationship marketing still further by making maximum use of our enormous
customer base and overall strengths.
 We aim to win long-lasting customer satisfaction by providing products and services that meet individual requirements. This requires the development of business structures capable of responding
quickly and appropriately to customer needs, and the use of advanced IT to create attractive products
and services.

2) Selecting strategic markets and focusing resource allocation.
 Advanced marketing techniques will be used to select strategic markets, and to establish a strong
position in the personal banking market by focusing our total resources and capabilities.

Masaaki SatoManaging Executive Officer
Head of the Consumer andPrivate Banking BU

 MHFG’S STRENGTHS Approximately ¥34.2 trillion in personal assets under management (No. 1 in Japan)
 Approximately ¥8.4 trillion residential housing loan portfolio (No. 1 in Japan)(The figures above are the aggregated totals of the three banks as of March 31, 2001.)

 ACHIEVEMENTS IN FISCAL 2000 AND PLANS FOR FISCAL 2001
 Business Environment
and Customer Needs
 Increasingly Diverse and SophisticatedNeeds• Emphasis on relationships.
• Growing demand for consulting services.
• Convenience a priority.
 Deregulation, Escalating Competition• Accelerating influx of competitors fromnon-financial industries.
• Competition from foreign financial institutions.
• Growing involvement of competing
Japanese financial groups in personalbanking.
• Expanding range of available services.
 Advances in IT• Reviewing conventional business models.
• Diversifying channels for supplying
products and services.
• Wider scope for development of newservices.

40 MIZUHO Achievements in Fiscal 2000
 Increase in Personal Assets
under Management• Wider range of investment trusts,
foreign currency deposits, etc.
• “Mizuho Fund Collection” launched.
 Expansion in Housing Loan Business• ¥480 billion increase in balance of residential housing loans during the year.
 Development of “Mizuho” Brand Products• Integrated Mizuho loan products
launched.
• Mizuho UC Card and Mizuho Spark
Card launched.
 More Convenient Channels• No fee charged for access to intergroup CDs and ATMs.
• Uniform fees for inter-group transfers
using ATMs, etc.
 Providing New Services• “em-town” launched.
• Use of will trusts and other functions
offered by The Yasuda Trust and Banking
Co., Ltd. commences.
• Joint lectures and seminars.

 Plans for Fiscal 2001
 Expand and Reinforce Transaction Base
• Improve staff skills to strengthen relationship marketing.
• Increase emphasis on corporate retailmarket taking advantage of corporate
customer base.
 Achieve Market Advantage throughExpansion of Assets under Managementand Loans• Expand assets under management
through appropriate asset arrangement
services.
• Expand consumer loan services throughstronger marketing.
• Full-scale utilization of group-based
financial functions.
 Development of Competitive Products
and Services• Introduce cross-group insurance products.
• Launch bank debentures covered bydeposit insurance.
 Strategic IT Investment• Develop individual customer database.
• Involvement in settlement payment
systems and IC card projects.
 Preparations for Consolidation• Consolidation of existing products andservices.

 Promoting Relationship Marketing
Developing Sophisticated Membership-Style Banking Services
The three banks have considerable expertise in the area of membership-style banking services
and have been enjoying strong customer support. This expertise will be used to develop suchservices into programs designed to meet a wide range of customer needs.
Developing Advanced Individual Customer Databases
A variety of information will be integrated to create databases that can be used to support
MHFG’s sophisticated marketing activities. The database will also be used to optimize our
responses and services to individual customers through various channels.
Optimizing Asset Management Advisory Services
We will respond to our customers’ needs by maintaining a range of high-quality products,
expanding our force of highly trained specialized staff and using proactively our IT infrastructure. We will optimize our asset management services, including portfolio proposals, for eachcustomer.

Number of Customers Utilizing
Membership-Style Banking Services(customers in millions)

6•
5•
4•
3•
2•
1•
0•

Mar. 1999 Sept. 1999 Mar. 2000 Sept. 2000 Mar. 2001

 Strategic Market Selection and Prioritized Commitment
Outstanding Balance of Residential
Housing Loans(trillion yen)

8.5•
8.4•
8.3•
8.2•
8.1•
8.0•
7.9•
7.8•
7.7•
7.6•

Mar. 2000

Mar. 2001

Sept. 2000

 Using IT to Improve Customer Convenience
Banking and Shopping Town - The Start of “em-town”
We opened our “em-town Branch,” the first Internet-based virtual branch among Japanesecity banks. The branch is located in “em-town,” an Internet community established to meet
new customer needs. Customers of em-town can enjoy a variety of activities, including shopping.
Expanding Remote Banking Services such as Internet Banking
We offer a unique range of services unmatched by any other bank, including online sales oflottery tickets and a sophisticated and extremely secure shopping payment system. We arealso increasing convenient services which can be accessed via conventional or mobile telephones.
Introducing New Service Channels
We are actively developing new service channels, including multifunction ATMs in convenience stores, and full-service in-store branches that are open also on weekends. We are also
continually introducing new services, such as sales of lottery tickets through ATMs.
Multi-Payment Network
The three banks are leading the development of new infrastructure for the payment of suchitems as taxes, treasury funds and public utility charges.
Expanding Card-Related Businesses
We offer superior services and advanced settlement and payment systems, including IC cards.

ATM Network of the Three Banks(number of locations)

10,000•8,000•

6,000•

4,000•

2,000•

0•Mar. 2000

Mar. 2001

Mar. 2002

Mar. 2003*Number of locations where CDs and ATMs are
situated, including ATMs in convenience stores(E-net and others). Dotted line signifies expected
increase.

MIZUHO 41

CHAPTER 4

of Resources
Reinforcing the Personal Loan BusinessWe offer an extensive range of loans to match the lifestyles of our customers. Our lineup
includes a variety of housing loan products to meet the funding needs of customers who plan
to buy or replace their homes.
Serving the Private Banking Market
We aim to foster customer confidence in this area by offering a wide spectrum of finely
tuned asset management services based on the overall group strengths and the skills of ourhighly specialized staff.
Developing Corporate Retail Market
We will use our resources, including our solid corporate customer base and expert knowledgeof a wide range of products and services to respond to the needs of corporate customers andtheir employees.

Business Strategy of MIZUHOS

mall Business & Middle Market
Banking Business Unit

This BU serves small and medium-sized, and middle market enterprises (“SMEs”) in Japan(excluding major corporations such as those listed on the first section of stock exchanges).

We aim to become the “best partner” for SMEs by speedily offeringhigh-quality finance and sophisticated products and services that are
carefully tailored to their requirements.

Takanori Yano
Managing Executive Officer
Head of the Small Business &Middle Market Banking BU

 BASIC STRATEGY
1) Supply smooth and stable funds to SMEs, which are the backbone of the Japanese economy.
2) Expand and enhance our solutions business in line with business strategies.
3) Use IT to provide a rapid response to customers’ requirements.
4) Identify new businesses in high-growth sectors and provide them with the support theyneed to develop.
5) Build an efficient, high-quality business promotion structure.
 MHFG’S STRENGTHS ¥35 trillion portfolio of loans to small and medium-sized enterprises (No. 1 in Japan).
(The figure above is the aggregated total of the three banks as of March 31, 2001. Based on preliminary financial
results for fiscal 2000 (balance after subtracting outstanding consumer loans from loans to small and medium-sizedenterprises).) ACHIEVEMENTS IN FISCAL 2000 AND PLANS FOR FISCAL 2001
 Business Environment andCustomer Needs
 Transactions with SMEs are broadly
based and underpin the Japanese
economy.
 Although the funds procurement
needs of corporations remain weak,
we will respond positively to thechanging financial needs of our customers by expanding our range ofloan products, and by enhancing ourinternal systems.
 We will offer advanced solutions
tailored to the business strategies
of each customer with increasingly
sophisticated and diverse requirements.
 We will increase our efforts to identify and foster new businesses and venture companies.

42 MIZUHO Achievements in Fiscal 2000

 Plans for Fiscal 2001

 Establishment of Mizuho Venture
Fund• One of the largest funds in Japan, withtotal assets of ¥30 billion.
 Promotion of Solutions Business• Solutions business based on derivatives,
M&A, support for IPOs, syndicatedloans, etc. Rapid growth in the numberof new contracts and fee income.
 Proactive Development of New
Markets and Customers• A dedicated staff of 500 to develop new
business enabled us to maintain steady
growth in the number of customers andthe amount of business transacted.
 Utilizing the Three Banks’ Networks• Excellent results were achieved throughthe use of the three banks’ extensive
networks to assist customers’ businessactivities by providing information andother services.
 Automatic Credit Evaluation System• The network of branches using the system
was expanded substantially in preparation for commercial introduction.

 Proactive Response to Healthy
Demand for Funds• Respond positively to healthy demand
for financing by expanding and enhancing the range of loan products.
 Offer Advanced Solutions• Provide advanced solutions to businessneeds, including restructuring and balance sheet improvements.
 Support for Development of New
Businesses and Venture Companies• Increase support for the new businessesof the 21st century, including support
through the Mizuho Venture Fund.
 Strategic Approach to the Small
Business Sector• Make full use of the automatic credit evaluation system and the Business Finance Center.
 Improve Asset Structure• Reinforce credit risk management tomaintain and improve the quality of theloan portfolio.
 Utilize the Three Banks’ Networks• Utilize the extensive networks of thethree banks to support customers’ business activities by providing informationand other services.

 Proactive Response to Healthy Demand for Funds

 Advanced Solutions Tailored to Business Activities

The Role of the Mizuho Venture FundWith total assets of ¥30 billion, the Mizuho Venture Fund is one of the largest funds of its
type in Japan. Its role is to identify and foster the new businesses, venture companies andhigh-tech growth companies that will drive the economy in the 21st century.
Expanding Specialist Staff
We will further expand and enhance our specialist staff to provide enhanced management
advice and business support for new businesses and venture companies.
Providing Solutions to Match Business Strategies
We will enhance and expand our M&A and MBO services and strengthen our listing support
and capital policy advisory services. We will offer solutions linked to customers’ businessstrategies through forums such as study groups and seminars.

40•

30•

20•

MHFG
Sumitomo Mitsui
Banking Corp. (SMBC)
UFJ Group
Mitsubishi
Tokyo
Financial Group

10•

0•

Source: Preliminary financial results for fiscal 2000
(comparison of outstanding loans to small
and medium-sized enterprises after
subtracting outstanding consumer loans).
Researched by Mizuho Holdings.

Outstanding Venture Capital Investment(billion yen)

70•

MHFG

60•
50•

UFJ Group40•

Mitsubishi Tokyo
Financial Group

30•

SMBC

20•
10•
0•

Source: Nihon Keizai Shimbun,
FY1999 Venture Capital Survey(July 7, 2000).

 Strategic Approach to the Small Business Sector
Automatic Credit Evaluation System for Small and Medium-sized Enterprises
We are developing a practical automatic credit evaluation system based on a scoring model
as part of our proactive response to the financing needs of small and medium-sized enterprises.
Efficient Direct Marketing through the Business Finance Center
We will further enhance and expand the organization of our Business Finance Center, which
has sophisticated loan officers. The center specializes in direct marketing via telephone, facsimile, direct mail and other means, centered on loans guaranteed by the Credit Guarantee
Corporation.

MIZUHO 43

CHAPTER 4

 Support for New Businesses and Venture Companies(As of March 31, 2001)(trillion yen)58.1

Reinforcing Solutions Capabilities
We will further expand our professional human resources and strengthen branch-level support to meet the needs of SMEs in such areas as investment banking products. We will alsooffer advanced solutions to meet the diverse management needs of customers.
Derivatives
We will enhance and expand our range of derivative products to meet the changing risk management requirements of our customers.
Support for M&As and IPOs
We offer comprehensive advice based on close cooperation with affiliated companies to meet
the business restructuring needs of customers.
Syndicated Loans
We have gained considerable expertise through our involvement in arranging syndicatedloans for overseas borrowers and major corporations, and will exploit this to provide
enhanced support for SMEs.

Loans to Small and Medium-Sized
Enterprises

35

Responding Positively to Financing Needs
As their “best partner,” we will serve our customers as a reliable source of smooth and stable
funds to meet sound financing needs.
Developing New Markets and Customers
A staff of 500 will work exclusively to attract new customers and expand the customer baseamong successful SMEs.
Expanding and Enhancing Loan Products
We will continue to respond to changes in the interest rate environment by developing newloan products, including smaller fixed-interest loans for small and medium-sized enterprises.
We will also expand and enhance our range of loan products, including strategic funding
products for small and medium-sized enterprises, based on loans with Credit Guarantee
Corporation guarantees.

Business Strategy of MIZUHOCor porate and Financial Institutions
Banking Business Unit

This BU works primarily with major corporations and financial institutions, and their groupcompanies.

With our comprehensive information resources and financial expertise,
we aim to become the No. 1 Japanese wholesale bank in the global
market.

Hiroshi Saito
Managing Executive Officer
Head of the Corporate andFinancial Institutions Banking BU

 BASIC STRATEGY
1) Build an enhanced full-line service menu that fully uses the capabilities of MHFG.
2) Create a strategic portfolio based on a high level of managerial competence.
3) Offer innovative financial services through the application of cutting-edge IT and FT.
4) Serve as a partner in building new businesses and management structures by taking anactive role in assisting customers with their strategic management and business needs.
5) Offer optimized solutions for the various investment and management needs of Japanesefinancial institutions.
 MHFG’S STRENGTHS ¥27.5 trillion in loans to large corporations (No. 1 in Japan)(The figure is the aggregated total of the three banks as of March 31, 2001.)

 US$41.7 billion (40% share) in arrangement of domestic syndicated loans in fiscal 2000
(No. 1 in Japan)
 Transactions with 1,170 financial institutions (No. 1 in Japan)(The figure is the aggregated total of the three banks as of March 31, 2001.)

 ACHIEVEMENTS IN FISCAL 2000 AND PLANS FOR FISCAL 2001
 Business Environment andCustomer Needs
 Increased Need for Financial
Restructuring• Economic stagnation reflected in customers’ continuing efforts to reduce
debt and increase off-balance-sheettransactions.
 Business Restructuring Driven by
Drastic and Accelerating Changes in
Business Environment• Infrastructural changes resulting fromaltered accounting standards, the IT revolution and deregulation.
• Need for market- and shareholderoriented management.
• Sharp increase in customer need forbusiness restructuring and improvements in efficiency.
 Diversification of Investment Needs• Diversification of investment needs has
accelerated, especially among financial
institutions and institutional investors.

44 MIZUHO Achievements in Fiscal 2000

 Plans for Fiscal 2001

 Excellent Results Achieved with
Optimized Financing Schemes• Commitment lines, syndicated loans,securitization schemes and other methods
used to provide a finely tuned response
to customer needs.
 Expansion of M&A and Derivatives
Businesses• Enhanced ability to propose solutions
in response to customers’ business andfinancial strategy needs.
• Substantial increase in fee income from
M&A and other activities.
• Substantial increase in income from derivatives.
 Cross-Selling of Products and Services• Reciprocal promotion of network products, derivatives and overseas offices of
the three banks, etc.
 Integrated Marketing of Services for
Financial Corporations• Subscriptions for bank debentures (subscription bonds) secured from numerous
financial corporations.
• Full-service transactions through theprovision of asset management products
and solution services.

 Development of Advanced Services
Based on Group Capabilities• Closer cooperation with group companies, including Mizuho Securities andMizuho Trust & Banking.
 Enhanced Response to SophisticatedFinancial and Management Needs• Emphasize proposals for solutions.
• Provide competitive products based on
financial services and arrangement
capabilities.
 Aggressive Expansion into New Areasof Business• Response to electronic data inter-change.
• Ongoing contribution to the creationof a secondary loan market as a core
member of the Japan Syndication and
Loan-trading Association (JSLA).
 Improvement in Asset Portfolios• Proactive response to funding demand.
• Restructure portfolios and shift to active
control with proper emphasis on risks
and returns.

 Corporations

Loans to Large Corporations(As of March 31, 2001)(trillion yen)
40•

MHFG
30•
27.5

Mitsubishi Tokyo
Financial GroupUFJ Group

20•

SMBC

10•

0•

Source: Preliminary financial results for fiscal 2000.
Researched by Mizuho Holdings.

(Fiscal 2000)(billion U.S. dollars)

50•

40•

MHFG
Bank of Tokyo-Mitsubishi
Sumitomo Bank

30•

Sanwa Bank
Citigroup

20•

Sakura Bank

10•

J.P. Morgan
Chase

0•

Source: IFR Securities Data.

 Financial Institutions
Responding to Changing Financial Needs
As the “best partner” for managing the assets of financial institutions, we offer a wide rangeof products and services to meet their diverse financing needs. In addition to bank debentures (subscription bonds), we sell investment trusts, securitization products and other products through group companies. We are also involved in referrals in connection with domestic
syndicated loan deals.
Development of Advisory Business
The cooperative relationships that MHFG is building with other financial institutions extend
beyond asset management to a wide range of other activities. In recent cases, we provided
assistance in such areas as management advisory services relating to mergers and consolidations of financial institutions and improvements in internal control systems such as integrated
risk management and portfolio management.
Responding to Outsourcing Needs
In recent years, financial institutions have increasingly turned to outsourcing as a way of
improving the efficiency of in-house operations. We regard catering to outsourcing needs as
an important area of business. We offer a wide range of assistance in such areas as foreignexchange/yen settlements, foreign exchange/yen clearing services and defined contribution
pension plans.

Glossary
Cross-selling
Cross-selling each other’s products and services
enables DKB, Fuji Bank, IBJ and other MHFG
companies to respond to customers’ needs with
an optimized mix of financial services and capabilities.
EDI (Electronic Data Inter-change)
EDI allows orders, invoices and other transaction
data to be exchanged electronically between different companies in standardized formats.

MIZUHO 45

CHAPTER 4

Domestic Syndicated Loan Arrangements

41.7

Full Range of Services Based on Closer Cooperation
This BU is responsible for relationship management and has close cooperative links withgroup companies such as Mizuho Securities and Mizuho Trust & Banking and with other BUs,
as a means of coordinating and introducing their various functions in the most appropriate
and timely manner. Specifically, we offer prompt support across a wide spectrum of financial
services, ranging from assistance with fund settlements to the provision of various financing
schemes, including the use of bonds, investment banking services, as well as services for
employees, securities transfer agency services and master trust services, just to name a few.
Development of Financial Services Centered on Proposal-Type Solutions
We use our research and advisory capabilities to respond to the changing and increasingly
sophisticated requirements of customers in the areas of management and business strategy
and advanced financial management. We actively offer high added-value solutions and optimized proposals, including M&A advisory services, MBO programs, derivatives and securitization schemes based on the latest FT and expertise.
Dynamic Development of Products Based on Arrangement Capabilities
We enjoy an excellent reputation in areas requiring sophisticated arrangement expertise suchas asset and debt securitization deals. This reputation is reflected in our 40% share of theJapanese syndicated loan market. We possess an extensive network with business corporations, financial institutions and institutional investors, allowing us to enhance our ability toarrange schemes at both the origination and distribution stages.
Enhanced Support for Overseas Subsidiaries of Japanese Companies
We dynamically support the overseas activities of our customers by providing an extensive
range of locally oriented services that are integrated seamlessly with their transactions inJapan. Customers may make full use of the three banks’ branch networks to support theirglobal business activities.
IT and e-Business Models
We recently started our Mizuho Advanced CMS and Global CMS online services. These Webbased systems offer advanced cash management networks to help customers improve theirfinancial efficiency and assist them with managing their group accounts on a consolidated
basis. We are also working actively to expand our IT-based business infrastructure, including
trade finance EDI and the electronic commerce infrastructure.

Business Strategy of MIZUHOP

ublic Sector Banking
Business Unit

This BU serves national and local public sector entities and their affiliated organizations.

We aim to become the leading bank in the public sector market.
 BASIC STRATEGY
Based on the following characteristics and strengths, we will offer rapid and appropriate
solutions to the increasingly diverse and sophisticated needs that customers face as a resultof institutional reforms and deregulation.
1) A service network consisting of branches located throughout Japan.
2) Reliable, high-quality administrative services as a designated financial institution of local
governments.
3) Securities-related services and top-quality financial services using state-of-the-art financial
technology.
Shinji Kubo
Managing Executive Officer
Head of the Public Sector Banking
BU

 MHFG’S STRENGTHS We have extensive experience in dealing with national and local governments, special public corporations and other public agencies.

 ACHIEVEMENTS IN FISCAL 2000 AND PLANS FOR FISCAL 2001
 Business Environment
and Customer Needs
National Government
 Wide-Ranging Administrative Reform• Reform of the Fiscal Investment and
Loan Program (FILP).
• Reorganization of national government
ministries and agencies.
• Reform of special public corporations.
Local Governments
 Local Governments and Local Budgets
Play Increasingly Important Role
• Progress in decentralization, administrative and fiscal reform.
• Development of community welfare systems to cope with an aging society anda falling birthrate.
Responding to Increasingly Diverse,
Sophisticated Customer Needs
 Helping Organizations Provide More
Efficient, More Effective PublicServices• Diversified financing and investment
needs.
• Operational efficiency needs.
• Cost-cutting needs.

46 MIZUHO Achievements in Fiscal 2000

 Plans for Fiscal 2001

National Government
 Involvement in FILP Agency Bond Issues• As part of the reforms of FILP, 20 institutions are due to issue FILP agency
bonds worth approximately ¥1.1 trillion
from fiscal 2001 onwards.
• Mizuho Holdings has played an activerole in efforts to ensure that the issues
go smoothly. For example, in November
2000 it cooperated with the group’s
five core subsidiaries in hosting the“Mizuho Public Sector Seminar” concerning FILP agency bonds.
Local Governments
 Actively Contributing to Improving
the Efficiency of Public Services• We actively supported private financeinitiatives (PFIs) as part of our response todiversifying government administrative needs.
• We played the role of arranger and agent,and participated in a syndicated loan
formed for a PFI scheme undertaken by
the Tokyo Metropolitan Bureau of Waterworks. (A permanent power generation
facility for the Tokyo Metropolitan Government’s Kanamachi Purification Plants).

National Government
 Response to FILP Reform andReorganization of Government
Ministries and Agencies• A number of institutional reforms willtake effect in fiscal 2001, including
issues of FILP agency bonds, a shift
to own-account investments of postal
savings and pension reserves and theestablishment of independent administrative institutions.
• We will respond appropriately andpromptly to these institutional reforms
and to the resulting need for efficiency
improvements in financing, investment,
and administrative organizations andservices.
Local Governments
 Provide Appropriate Solutions to
Meet Changing Administrative Needs• Provide stronger branch network services.
• Propose efficient financing and investment methods.
• Maintain and improve the reliability andefficiency of operational services.
• Propose methods, such as PFIs, toimprove the efficiency of public services.

 Business Strategy of the Public Sector Banking BU
The customer base of the Public Sector Banking BU consists of public sector organizations,
including national and local governments and related organizations. The BU offers a numberof advantages and strengths, including (1) branch network services covering all of Japan, (2)reliable, high-quality administrative services as a designated financial institution of local governments and (3) securities-related services, including activities as commissioned bank andunderwriting of public bonds, and superior financial services based on new FT. The BU uses
these advantages and strengths to provide prompt and appropriate solutions to meet thediverse needs of its customers. In this way, the BU aims to build solid relationships based on
mutual trust.

The Vision of the Public
Sector Banking BU
The Leading Bankin the Public Sector Market

Approach basedon the useof the nationwide
branch network
Marketingto localgovernments

 Business with National Public Sector Entities—Proactive Response to Needs Arising Out of FILP Reforms
and Reorganization of Ministries and Agencies

Activities asa designatedfinancial institution

Approach basedon long-term
financing needs
Government-guaranteedbonds, private subscription bonds, fixed
long-term loans, etc.

CHAPTER 4

FILP Reforms
With sweeping reforms based on legislation, drastic changes are being made to the FILP. As
part of the new legislation, the old system, under which all postal savings and pension
reserves were deposited with the Trust Fund Bureau of the Ministry of Finance, has beenabolished, and starting in April 2001, in addition to the funds and reserves being allowed to
be invested autonomously through financial markets, a new system has also been put inplace whereby special public corporations and other organizations are permitted to raise necessary policy funds in the market, preparing the way for issues of FILP agency bonds to be
publicly subscribed. We will continue to respond dynamically to these increasingly diverse
investment and financing needs.
Reorganization of Ministries and Agencies
In January 2001, the government implemented a restructuring program under The Basic Law
for Central Government Reform that reduced the number of ministries and offices from 23 to
13. Starting in April 2001, services previously provided directly by the government will be progressively transferred to approximately 60 newly established independent administrative institutions. Under the administrative reform master plan adopted by the cabinet in December
2000, the activities and organizations of special public corporations will be reviewed througha rationalization plan that will be formulated during fiscal 2001. We will continue to provide
an appropriate response to the need for improvements in the efficiency of administrative
organizations.

Approach basedon payment anddisbursement
operations

Mizuho Public Sector Seminar on the subject of
FILP agency bonds.

 Business with Local Public Sector Entities—Effective Response to Diversifying Administrative Needs
Local Government Administration
The devolution of authority from the national to the local level has increased the importanceof the roles played by local governments and the fiscal measures that they implement. Efforts
now focus on developing and establishing simple, efficient administrative structures capableof dealing with new administrative issues and responding to the diverse needs of residents,and on reforms designed to balancing local government finances. Moreover, to ensure thatpublic services are provided efficiently and effectively, numerous deregulatory measures havebeen introduced, including the contracting out of services to the private sector. We will
actively provide financial services designed to contribute to efficiency improvements in local
government, arranging PFIs and introducing electronic payment systems for public charges.
Business as a Designated Financial Institution
We are currently the designated financial institution for 35 local governments, most of which
are based in the Tokyo metropolitan area. We are determined to fulfill the expectations ofthese customers by maintaining and enhancing our reliable, high-quality administrative services. In addition, our network includes a nationwide chain of manned branches, more than
1,100 fully automated service centers, ATMs in convenience stores and an Internet branch.
We use these resources to provide finely tuned financial services to meet the needs of local
governments and related organizations throughout Japan.

Glossary
Fiscal Investment and Loan Program Agency
Bonds
Public bonds issued without government guarantees by individual special public corporations andother government institutions in private sector
financial markets.
Private Finance Initiatives
PFIs are financial structures whereby private sector
funds and expertise are used in the design, construction and operation of public facilities, etc.,
and are an effective and efficient approach to theprovision of public services.

MIZUHO 47

Business Strategy of MIZUHOInternational Banking
Business Unit

The customers of this BU include non-Japanese companies in the overseas market and theirgroup companies, and overseas financial institutions.

We are determined to become the “best partner” for customers who are
engaged in global business activities.
 BASIC STRATEGY
Provide the best possible solutions to customers through our vast global network.
1) Offer leading-edge financial products on a global basis.
2) Provide advisory services based on a solid business base and presence in overseas financial
markets.
3) Wide-ranging services via MHFG’s global network.

Minoru Itosaka

 MHFG’S STRENGTHS Balanced global customer base.
 70% coverage of Fortune 500 companies.

Managing Executive Officer
Head of the International Banking
BU

 ACHIEVEMENTS IN FISCAL 2000 AND PLANS FOR FISCAL 2001
 Business Environment
and Customer Needs
 Need for Global Financial Products
in a Globalized, Borderless World
Economy.
 Need for Highly Specialized Advice
to Cope with the Rapid Growth ofForeign Business Investment and M&A
Activity in Japan.
 Need for Competitive, High ValueAdded Financial Services Geared
toward Escalating Global Competitionin Financial Markets.

48 MIZUHO Achievements in Fiscal 2000

 Plans for Fiscal 2001

 Cooperation among the Three Banks• Providing financial services that integrate the combined strengths of thethree banks.
• Joint hosting of lectures and seminars.
• Producing major financing deals basedon the combined underwriting capabilities of the three banks.
 Consolidation of Overseas Offices• Mizuho Bank Nederland N.V. starts
operations (October 2000).
• Mizuho Bank (Canada) starts operations(November 2000).
• Consolidation of the Labuan Branch(including the Kuala Lumpur Marketing
Office) (March 2001).
• Consolidation of the Kuala Lumpur
Representative Office (March 2001).
• Consolidation of the Düsseldorf andParis Branches (June 2001).

 Promotion of the Mizuho Brand• Increased emphasis on business basedon greater cooperation among thethree banks.
 Completion of Overseas Office
Consolidation• Plans call for consolidation to be completed by April 2002. Among otherthings, the operations of all overseas
offices of the three banks are to bebrought together and consolidated into
integrated offices during fiscal 2001.

 Regional Business Strategies

 Main Products and Services
Syndicated Loans—Global Top Ten Status
A syndicated loan is a solution to satisfy a customer’s financing needs when a single bankcannot provide the necessary funds. With one bank acting as lead manager, or arranger, agroup of multiple financial institutions raises the funds under specific lending terms and provides a loan based on a single loan agreement. This method allows companies to borrowlarge amounts of money through a single transaction. There are significant cost advantages
because there is only one contract and loan repayments are made via a single contact.
We have built a powerful distribution capability through our business relationships with awide range of foreign banks. This capability has enabled us to act as arranger in numerous
syndicated loans in countries throughout the world. We compared favorably with the world’s
leading banks in the 2000 world rankings published by International Financing Review (IFR)
magazine, and were the highest-placed Japanese bank.
Project Finance—Leading the Japanese Banking Sector
Project finance is used for development and construction projects that require a substantialcommitment of money and time such as resource and energy development schemes, plant
construction, and the development of telecommunications and transportation infrastructure.
Such projects continue for long periods of time and become economic units in their own
right since repayments are funded from future cash flow.
We are involved in project finance on a global scale. We have stationed expert staff in a
number of overseas locations, including New York, London, Singapore and Hong Kong andhave acted as financial adviser or arranger for numerous projects. Our excellent reputation in
the market is a reflection of our expertise in this field. We were the highest-ranking Japanesefinancial institution in the fiscal 2000 rankings published by Project Finance International (PFI)
magazine.

(Amounts arranged, January 1–December 31, 2000)
RankingAmount (US$ million)

1 JP Morgan
2 Bank of America
3 Citibank/SSB
4 Barclays
5 Deutsche Bank
6 BancOne
7 ABN AMRO
8 MHFG
9 CSFB
10 HSBC
11 FleetBoston
12 BNP Paribas
13 Societe Generale
14 First Union
15 Commerzbank
16 Bank of Tokyo-Mitsubishi
17 RBS
18 Dresdner KB
19 UBS Warburg
20 Goldman Sachs
Source: IFR.

305,202.59
299,576.03
225,739.05
115,782.74
87,994.16
81,617.35
76,381.92
70,731.70
51,708.89
46,433.24
44,929.89
41,427.00
41,424.85
34,655.90
32,921.27
32,130.23
31,798.41
30,379.32
28,505.08
27,473.55

Global Syndicated Loan Arrangers(Numbers of loans arranged, January 1–December 31, 2000)
Ranking

No. of Deals

1 Bank of America
2 JP Morgan
3 Citibank/SSB
4 BancOne
5 FleetBoston
6 Deutsche Bank
7 ABN AMRO
8 Barclays
9 MHFG
10 First Union
11 BNP Paribas
12 Societe Generale
13 Commerzbank
14 Bank of Nova Scotia
15 CSFB
16 Credit Lyonnais
17 WestLB
18 Bank of Tokyo-Mitsubishi
19 Dresdner KB
20 HSBC
Source: IFR.

1,465
977
799
442
437
400
365
351
330
298
212
210
203
188
182
176
171
166
154
152

Global Project Finance Arrangers(Results for January 1–December 31, 2000)
Ranking

1 Citigroup
2 Societe Generale
3 Bank of America Securities
4 ABN AMRO
5 JP Morgan
6 CSFB
7 WestLB
8 Deutsche Bank AG
9 BNP Paribas
10 Barclays Capital
11 Dresdner KB
12 Merrill Lynch
13 Bank of Nova Scotia
14 MHFG
15 Goldman Sachs
16 HSBC
17 Credit Lyonnais
18 Bank of Tokyo-Mitsubishi
19 Abbey National
20 Bank of Montreal
Source: PFI.

AmountNo. of(US$ million) Deals

11,927
9,616
9,370
7,875
7,472
6,719
6,716
6,487
3,712
3,423
3,155
2,631
2,165
1,976
1,832
1,464
1,339
1,272
1,200
1,040

51
30
33
31
24
10
37
22
24
23
24
4
6
14
3
1
9
7
7
5

MIZUHO 49

CHAPTER 4

To be the No. 1 Comprehensive Financial Services Group in Asia
While there are considerable variations in the economic performances of individual countries,
Asia as a whole is now recovering from the currency crisis of 1997 and moving toward a newphase of economic growth.
Asia is our home ground. In addition to our dealings with numerous Japanese companies
that have expanded their operations in the region, we also work with major local companies
as well as European and U.S. business groups and are actively involved in areas of businessthat require specialized financial expertise such as project finance and the arrangement ofsyndicated loans with the Japan Bank for International Cooperation (JBIC) and other institutions. We aim to become the leading comprehensive financial services group in Asia by contributing to the region’s economic development.
Global companies from Europe and North America are increasingly moving into Japan. We
offer the best range of products and services and the most powerful network of any financialgroup in Japan. By using the full potential of these resources, we aim to establish a position
for ourselves as the best partner for these companies.
Aiming to Become the No. 1 Foreign Bank in the North American Market
The United States is the world’s most sophisticated financial market. We provide not only
conventional banking services for a wide range of customers, but we are also developing
business activities based on advanced FT, including securitization and other forms of structured finance, as well as lease finance, project finance and derivatives. We aim to be thenumber one foreign bank in the North American market.
Major Global Player in Europe
The creation of the “eurozone” through monetary union has been followed by an upsurge inindustry restructuring and M&A activity in European markets.
We see this as an opportunity to become a major global player in Europe by offering highvalue-added financial products throughout the region.

Global Syndicated Loan Arrangers

Business Strategy of MIZUHOS

ecurities and Investment Banking
Business Unit

This BU handles all the securities business and investment banking business conductedby MHFG companies.

Creating the first fully fledged Japanese-style investment bank.
 BASIC STRATEGYThe BU is engaged in the securities and investment banking business conducted by Mizuho
Securities as a core company.
1) Establish a business base for Mizuho Securities.
2) Create a multi-faceted collaboration of the securities and investment banking functions.

Mitsunori Kanesaka
Managing Executive Officer
Head of the Securities andInvestment Banking BU

 MHFG’S STRENGTHS Mizuho Securities: No. 1 in value in lead management of the domestic straight bond issues
for institutional investors (21% share excluding city bank SBs, etc.) (October 2000–March 2001).
 Mizuho Securities: No. 1 in value of the domestic asset-backed securities issues in which it
acted as lead manager (45% share) (October 2000–March 2001).
 Ranked 7th in M&A advisory banking in transactions involving purchases of Japanesecompanies (based on transaction value; from research by Thomson Corporation, Japan)(January–December 2000).

 ACHIEVEMENTS IN FISCAL 2000 AND PLANS FOR FISCAL 2001
 Business Environment andCustomer Needs
 Sustained Expansion of Direct
Financing Markets
 Escalation of Competition acrossIndustry Boundaries (Among Big FourFinancial Groups, Major Securities
Firms and Foreign Financial
Institutions, etc.)
 Growing Trend toward Efficient
Corporate Management Focusedon ROA and ROE
 Increasing Need for Company Balance
Sheet Improvements Following
Introduction of Market Value
Accounting and Other New
Accounting Standards
 Buoyant Demand for Products that
Match Companies’ Business andFinancial Strategies
 Increased Need for BusinessRestructuring Services Following the
Enforcement of the Civil
Rehabilitation Law and Progress in
Disposing of Non-Performing Loans

50 MIZUHO Achievements in Fiscal 2000

 Plans for Fiscal 2001

 Mizuho Securities• Started business in October 2000 following the merger of DKB Securities,
Fuji Securities and IBJ Securities.
 Swiss and U.K. Securities Subsidiaries
Consolidated• Mizuho Bank (Schweiz) established(October 2000)• Mizuho International established(December 2000)
 Increase in Investment Banking
Earnings• Dramatic increase of approximately
60% over the previous fiscal year’s
result, mainly because of growth in
M&A, acquisition financing, etc.
 Planning of Investment Banking
Structure for Phase 2 and Beyond Preparations to Establish the Real
Estate Investment Trust Establishing a Business Structure with
Mizuho Securities as a Core Company• Establish business base and develop
integrated operations with overseas
securities subsidiaries.
 Full-Scale Start-up of Investment
Banking Services by Mizuho Securities Consolidation of Overseas Securities
Subsidiaries• Consolidation of U.S. subsidiaries.
 Reinforce Cooperation with Mizuho
Investors Securities and Shinko
Securities
 Studies on Consolidation of Venture
Capital Companies and Commissioned
Bank Business Full-Scale Launch of the Real Estate
Investment Trust Active Development of New Securities
Products

On May 1, 2001, we established an enhanced investment banking business structure thatencompasses advisory services relating to M&A and other activities (hereinafter referred to as“M&A”), the arrangement of securitization and liquidation and the arrangement of leases
and other financial products (hereinafter referred to as “structured finance”).
Inaugurating these services, which were previously handled by the three banks, will allow
Mizuho Securities to provide a comprehensive range of services in the key area of investmentbanking.

Multi-Faceted Collaborationof Securities Business and IB Business
Mizuho Securities
Approx. 1,000 people
after IB consolidation
Capital market trading
Capital markets
Equities Establishing a Business Structure with Mizuho Securities as a

IBCore Company
Integrating the Operations of Mizuho Securities and Overseas Securities

Multi-Faceted Collaboration

 Mizuho Securities Starts Full-Scale Investment Banking Services

The Three Banksand Their Group
Companies
Approx. 300 people
Entrustment
IB
ABCP
Real estate
non-recourse loans
Acquisition finance,etc.

M&A advisory businessArrangement of securitization and liquidation
Arrangement of leases and other financial products

Subsidiaries
We will build a global network with Mizuho Securities as its hub to provide customers with awide range of products and services in Japan and overseas.

Closer Cooperation between Mizuho Securities and MHFG Retail Firms
Domestic SB League Table(Wholesale bonds, excluding city bank SBs, etc.)(Second half, fiscal 2000)
Lead Management Issues
Total issues: ¥2,097.0 billion

 Overview of the Securities Business
Mizuho Securities’ Bond-Related Business
The bond-related services of Mizuho Securities include underwriting, sales and trading. It
rivals Japan’s Big Three securities firms in terms of its underwriting share of domestic SBs andits share of customer trading in public and corporate bonds. Mizuho Securities aims to holdits position as a market leader by using the strength of its product lineup and the overwhelming size of its customer base.
Mizuho Securities’ Equity-Related Business
Equity-related services provided by Mizuho Securities include underwriting, sales and tradingand equity derivatives business. Since the full deregulation of the equity business in October
1999, Mizuho Securities has established a business infrastructure to create its equity businessbase. Achievements in the area of equity underwriting include the appointment of Mizuho
Securities as lead manager for six IPOs. It is also in the top ten in analysts’ rankings.
Progress in Consolidation in Preparation for Phase 2 (Venture Capital)
In the area of venture capital, we are looking into consolidating our three venture capital
firms as a way of maximizing the group’s overall resources and capabilities in this field.

Ranking

Securities company

1 Mizuho Securities
452.0
2 Nomura Securities
383.3
3 Nikko Salomon Smith Barney 311.7
4 Daiwa Securities SMBC
233.3
5 Morgan Stanley Dean Witter 155.0
6 Sakura Securities
146.5
7 Tokyo-Mitsubishi Securities 133.3
8 Merrill Lynch
93.3
9 Kokusai Securities
40.0
10 Shinko Securities
36.0
Source: Mizuho Securities research.

21.55
18.28
14.86
11.13
7.39
6.99
6.36
4.45
1.91
1.72

Domestic ABS League Table(Second half, fiscal 2000)
Lead Management Issues
Total issues: ¥309.1 billion

 Overview of Investment Banking Business
Structured Finance-Related Business
Mizuho Securities works closely with the three banks in providing a full range of services inthis area, including ABCPs, ABSs, leases and other financial products, and real estate nonrecourse loans.
M&A
We tailor our advisory services relating to business M&A to customers’ business strategies.
These services include analyses of corporate data, calculations of acquisition prices and merger
ratios and advice about financing. We also see M&A as a way of supporting corporate rehabilitation, including the arrangement of potential purchasers for companies whose businesses
still have the potential for recovery.
Acquisition Finance (Including MBOs) and Related BusinessWe provide advice on financing for various types of acquisition deals. We also handle
arrangements for all aspects of MBOs. In addition, we are engaged in arranging finance forcompanies that are undergoing rehabilitation and have the potential for recovery.
Full-Scale Start-Up of Real Estate Fund
We plan to launch a corporate-type investment trust real estate fund, and to list the fund’s
equities on the Tokyo Stock Exchange.

Leadmanagement Market
issuesshare(¥ billions)(%)

Ranking

Securities company

Leadmanagement Market
issuesshare(¥ billions)(%)

1 Mizuho Securities
140.5
2 Sanwa Securities
32.9
3 Deutsche Securities
29.4
4 Daiwa Securities SMBC
25.9
5 BNP Paribas
19.2
6 Goldman Sachs
16.7
7 CSFB
16.7
8 Tokai International Securities
Co., Ltd.
16.2
9 Nikko Salomon Smith Barney 10.5
10 J.P. Morgan Securities
1.1
Source: Mizuho Securities research.

45.46
10.65
9.51
8.38
6.21
5.39
5.39
5.25
3.40
0.36

Glossary
IPO=Initial Public Offering, MBO=Management
Buyout, ROA=Return on Assets, ROE=Return on
EquityMIZUHO 51

CHAPTER 4

Mizuho Securities will work in unison with Mizuho Investors Securities and strengthen cooperation with Shinko Securities. This will enable us to offer integrated services covering both
the wholesale market and the middle/retail market.

Business Strategy of MIZUHOT

rust and Asset Management
Business Unit

This BU handles asset management and administration services for group companies.

We aim to become a top player in the areas of asset services businessand defined contribution pension plans.
 BASIC STRATEGY
1) Become one of the world’s leading asset management groups in terms of both quality andassets under management.
2) Secure a position as a front-runner in the field of defined contribution pension plans.
3) Commit resources to priority areas, including master trusts and other forms of asset services
business.

Seiji Sugiyama
Managing Executive Officer
Head of the Trust and AssetManagement BU

 MHFG’S STRENGTHS
 Total assets managed by group-affiliated asset management firms: ¥12 trillion, including¥5 trillion in pension funds in Japan.
 Net investment trust assets managed by group-affiliated asset management firms: ¥3 trillion.
 Mizuho Trust & Banking: Outstanding assets managed through trust services: ¥11 trillion.
Assets under management: ¥31 trillion(All figures as of March 31, 2001)

 ACHIEVEMENTS IN FISCAL 2000 AND PLANS FOR FISCAL 2001
 Business Environment
and Customer Needs
 Low Interest Rates and Increased
Need for Asset Management
 Preparing for Retirement in an Aging
Society with a Falling Birthrate Expanding Pension Systems• Ongoing enhancement of pension systems, including a review of defined benefit pension plans and the introductionof defined contribution pension plans
and changes in design of company pension schemes.
 Diversifying and Increasingly Sophisticated Asset Administration Needs• Need for an appropriate and efficient
response to the introduction of market
value accounting and reforms of securities settlement systems (T+1, etc.).
Growing need for administrative rationalization.
• Asset administration outsourcing needsof investors, including Japanese institutional investors, become more sophisticated and diverse.

52 MIZUHO Achievements in Fiscal 2000

 Plans for Fiscal 2001

 “Mizuho Fund Collection” Launched Defined Contribution Plan Services
Established• The three banks, Mizuho Trust &Banking and four life insurance companies (Asahi Mutual Life Insurance,
Dai-ichi Mutual Life Insurance, Fukoku
Mutual Life Insurance and Yasuda MutualLife Insurance—“the four life insurancecompanies”) jointly established DefinedContribution Plan Services to provide
services relating to defined contribution
pensions.
 Mizuho Trust & Banking Established• Mizuho Trust & Banking was createdin October 2000.
• Mizuho Trust & Banking (Luxembourg)
was established in October 2000 throughthe merger of four overseas subsidiaries.
 Trust & Custody Services Bank
Established• A trust bank specializing in asset services business, including master trust
business, was established jointly by
Mizuho Trust & Banking and the fourlife insurance companies.

 Increase Range of Product Lineupof the Mizuho Fund Collection
 Prepare for Launch of DefinedContribution Pension Plans• We will make preparations for providing
a full range of products and services inreadiness for the expected introductionof these plans in order to become aleader in this field.
 Develop a Product Marketing
Structure for Mizuho Trust & Banking• We will enhance its marketing capabilities by establishing specialist productmarketing structures for each major
business area.
• The introduction of a trust agency
system is being considered for whennecessary legislation takes effect.
 Establish a Market Presence for the
Trust & Custody Services Bank
• The asset services operations of theeight participating companies, including
the four life insurance companies, will
be integrated and their human resourcesand expertise will be pooled to establish
a solid position for itself in the market.

 Asset Management

15 •

12 •

9•

12•

9•

6•

6•

3•

3•

0•

Mar. 2000
Investment advisory

Sept. 2000

Mar. 2001

Investment trusts

Awards and Ratings(Asset Management Products)
ResultSponsor/evaluator• Dai-Ichi Kangyo Asset Management
Morningstar Fund of theYear 1999
Morningstar
Standard & Poor’s
Select Fund (June 2000)
Standard & Poor’s• Fuji Investment Management
U.K. subsidiary ranked firstamong 49 U.K. pension
Source: CAPS*
funds in terms of nine-year
CAPS is ainvestment results.
leading(Range of ranking survey:
U.K.-based“Mixed with Property”
provider(wide range of investments,
of investment
including U.K. stocks, world
performancestocks and real estate)).
measurement
services.
(as of December 2000)• DLIBJ Asset Management
Morningstar Fund of theYear 2000
Morningstar
Three funds awarded highest
rating (AAAfp) (fiscal 2000)
Rating andInvestment
Information(R&I)

Outstanding Trust Assetsof Mizuho Trust & Banking(trillion yen)
40 •

30 •

20 •

10 •

0•

Mar. 2000

Sept. 2000

Mar. 2001*Asset management services were transferred from Yasuda
Trust & Banking in October 1999.

MIZUHO 53

CHAPTER 4

0•

30.9

Mizuho Trust & Banking
Since April 2001, Mizuho Trust & Banking has been building product-specific business structures capable of providing specialized support in the key business areas of pension trusts,
asset management, custody administration and stock transfer agency services, and securitization. For when the necessary legislation is in place, we are considering making the threebanks trust agents of Mizuho Trust & Banking as part of our efforts to provide the best possible services to customers. As for the consolidation of overseas trust subsidiaries, Mizuho Trust& Banking (Luxembourg) and Mizuho Trust & Banking (U.S.A.) in New York have been completed.
Asset Services Business
In January 2001, we established Trust & Custody Services Bank with joint equity participationfrom Mizuho Trust & Banking and the four life insurance companies. The new bank provides
asset services business, including master trust operations. The asset services operations of theeight participants, including the four life insurance companies, have been centralized under
the new bank. The synergies achieved by combining the human resources and expertise of
the eight companies will allow Trust & Custody Services Bank to build the sophisticated asset
services infrastructure required to provide customers with high-quality services.
The domestic and foreign securities custody services provided by the three banks toJapanese institutional investors will also be integrated under Trust & Custody Services Bank.

(trillion yen)

8.8

 Trust Services

Trends in Outstanding Assets underManagement by Affiliated
15•
Asset
Management Companies

2.8

Enhancing the Investment Trust Product Lineup and Developing a High-Quality
Investment Trust Business Structure
The Mizuho Fund Collection has been very popular since its launch in October 2000. In June
2001, the three banks added three other highly respected funds to the collection. The range
will be steadily expanded in the future, and the products will be marketed through the threebanks’ network of 640 offices in Japan to meet the asset management needs of customers.
The three banks will share the resources they have accumulated in the area of sales expertise and systems infrastructures, including the methods they use for analyzing customer
needs, building portfolios and providing after-sales care. This combined marketing approach
will allow us to provide our customers with high-quality services.
Defined Contribution Pension Services
We are applying our total resources and capabilities to the creation of a structure capable ofoffering integrated services for the introduction of defined contribution pension schemes. The
structure will include consulting services for companies, an extensive range of products andmember support provided by a newly established company, Defined Contribution Plan Services.
Unique Asset Management Companies
With some ¥12 trillion in assets under management as of March 31, 2001 (including ¥5 trillion in domestic pension investments), Dai-Ichi Kangyo Asset Management, Fuji Investment
Management and DLIBJ Asset Management (DIAM) are among Japan’s leading asset management companies.
All three offer a variety of investment products based on their own unique investment
philosophies and styles. They handle numerous funds, including funds that have maintained
long-term growth, and funds that are highly rated by independent investment trust evaluation organizations. We will continue to strengthen our capabilities in this field in order to provide customers with the best possible products and services.

e

Business Strategy of MIZUHO-Business and Global Transaction
Services Business Unit

This BU specializes in developing new products and services that take full advantage of IT andin streamlining settlement infrastructure.

We will establish advanced settlement and e-business models.
 BASIC STRATEGY
1) Establish a de facto standard for next-generation settlement systems, perhaps leading topotential strategic alliances.
2) Build up the clearing business by centralizing settlement operations and using IT more
extensively.

Yoneo Sakai
Managing Executive Officer
Head of the e-Business and Global
Transaction Services BU

 MHFG’S STRENGTHS A leading Japanese bank in the field of Internet banking, with approximately 420,000
subscribers.
 The No. 1 Japanese bank in the debit card business, with an approximately 35% shareof total sales by affiliated merchants.
 Top-class Japanese bank in the field of firm banking (“FB”), with contracts with some
84,000 companies.
(The figures above are the aggregated totals of the three banks as of March 31, 2001.)

 The No. 1 Japanese bank (approximately 32% share) in foreign exchange/yen clearance
services.
 The No. 1 Japanese bank (approximately 45% share) in yen custody services for foreign
institutional investors.
(The figures above are the aggregated totals of the three banks as of September 30, 2000.) ACHIEVEMENTS IN FISCAL 2000 AND PLANS FOR FISCAL 2001
 Business Environment andCustomer Needs
 We are rapidly expanding our involvement in new frontier areas, responding
to the rapid growth of e-commerce andcross-border business by integrating our
e-commerce services such as EDI, Identrus
and global CMS with our settlement
and foreign exchange services.
 Supply Chain Management (SCM):
Customers require increasingly sophisticated support, including morediverse settlement formats and theability to use Web-based systems.
 We provide advanced IT solutions thatprecisely match customer needs.
 By integrating our know-how andprocessing resources and applying IT,
we are able to improve efficiency andstrengthen settlement risk management.

54 MIZUHO Achievements in Fiscal 2000

 Plans for Fiscal 2001

 “em-town” Opens for Business• The “em-town” portal site and the Fuji
Bank “em-town Branch” opened in
January 2001.
 Expanded Internet Banking Services• Service levels were further enhanced by
the addition of new services, including
sales of lottery tickets and links with
online securities companies.
 New CMS Service Launched• The three banks jointly launched
Mizuho Advanced CMS in December
2000. The system supports centralized
cash management for corporate groups.
 Yen Custody Services Expanded• Fuji Bank and IBJ received top ratings by
the Global Custodian magazine in its
September 2000 edition.
 New Fund and Securities Settlement
Services Launched• Following the introduction of Real-Time
Gross Settlements into Japan, we began
to offer settlement processing services
to life insurance companies and securities companies.

 Promote “em-town” Business• The portal site will be marketed aggressively.
• Alliances will be used to expand market
share.
 Launch of New Global CMS• The new system was jointly developedby the three banks and introduced in
April 2001.
 Identrus Electronic Certification System• Develop an electronic certification scheme
specifically by financial institutions.
 Enhance the Yen Clearing System• We will introduce a settlement service
for financial institutions based on thesystem operated by the Continuous
Linked Settlement Bank (“CLSB”), a
newly established institution for international settlements in multiple currencies.
 Develop a New Yen Custody System• The new system is being developed in
anticipation of changes in international
securities settlement systems. It is expected
to gain considerable support in the market.
 Promote e-Commerce Systems for
Cross-Border Settlements• We have established World Gateway topromote trade finance EDI in Japan.

 e-Business: Building the Next Generation of Businesses Global Transaction Services and Foreign Exchange:

Global CMS Web Pages

Reinforcement of Clearing Business and Improvements
in Foreign Exchange Administration

Accounts
processing

Settlement
creditSales

Shipment
and distribution

Financing

Credit check
Credit guarantee

Selective
bidding by
counterparties

Yen Clearing Services
Custody and Foreign Exchange Agency Settlements
In addition to our overwhelming market presence, we offer attractive products and services
Yen custody assets
Number of foreign
geared toward IT and e-commerce. We are working to expand our foreign exchange/yenof foreign investors
exchange agency(Sept. 2000)
settlement customers
clearing services and our agency settlement services for the CLSB with regional banks, as well
(Sept. 2000)
as our foreign exchange/yen clearing services with foreign banks. We are also working to
MIZUHO
build strong links with other banks and to improve our profitability.
MIZUHO
Mizuho’s share:
Approx. 32%,
Mizuho’s share:
Yen Custody
No. 1
Approx. 45%,
The consolidation of the three banks has given us an important advantage in the area of
No. 1
Japanese stocks and bonds. We are a top custodian among Japanese banks, and our services
are used extensively by many overseas institutional investors. We
have started work on developing a new system in anticipation of
MHFG’s Involvement in Cross-Border Net-Related Projects
the shift to DVP (Delivery versus Payment) settlements and a shorter
settlement cycle (T+1).
Next-Generation, Cross-Border Settlement Systems
and Foreign Exchange Services
We are an active participant in various next-generation, cross-border
Normaltransaction
settlement system projects, namely Bolero, TEDI, Eleanor/SURF andflow
Bolero/TEDI
GCMS/FB
Identrus. Based on this extensive know-how, we established World
World Gateway
Gateway with the aim of providing quick, efficient e-solutions instep with the take-up of IT by customers. Also, as part of our conEleanor/SURF
solidation process, we will integrate our foreign exchange adminisIdentrus (electronic certification service)tration subsidiaries and external communications systems. This will
result in a structure that is able to meet a wide range of customer
needs.
MIZUHO 55

CHAPTER 4

IC Cards
We will lead the way in issuing IC cards with combined credit andMizuho’s IC Card Strategy
cash card functions, based on the specifications established by theHigh-level Settlement Payment Systems Designed
Japanese Bankers Association, and multifunction IC cash cards for
to Take Advantage of Opportunities
closely associated companies.
General Users
Internet Users
In conjunction with the “em-town” project, we will work tobring the real and virtual worlds together by introducing new funcReal
Virtualtions, including the ability to download applications and points.
MizuhoCash cards, J-Debit
Internet banking
IC CardCredit and other banking
Shopping-linked settlement
Internet Banking
functionsservices
Public acceptance of the Internet is reflected in rapid growth in the
Identity certification,
e-money, etc.
transaction certification, etc.
Identity certification,
number of Internet banking users and the number of transactions.
Loyalty programs
transaction certification
The Internet is an extremely convenient channel for individual
Multi-application
IC cardcustomers, and we will continue to expand our involvement in thisImages on IC Card Chiparea, including the development of exclusive services. We will also
Aims of Cash/IC Cash Card Services
Cash cards
Credit cards
adapt dynamically to new media, including mobile Internet access1) Improve customer convenience
Debit cards
and satisfaction
service and BS digital broadcasting.
e-money2) Provide stronger security
Points3) Create new business opportunities
Global CMS
Additional services
4) Reduce costs, rationalize administration
In April 2001, we started a new Web-based service jointly developed
Multi-application operating systems (OS)by the three banks to meet the cross-border cash management
requirements of companies that have expanded overseas.
The new system includes screen displays in Japanese, English and Chinese and 24-hour
help-desk support. It will be introduced progressively as overseas branches are consolidated.
B2B e-Commerce
Thanks to our broad customer base and extensive know-how, we are able to provide a variety
of financial services, including settlement and credit, to meet the needs of the marketplace.
We are also building alliances with the leading software vendors and independent Internet sites.

Business Strategy of MIZUHOALM and Trading Business Unit

The role of this BU is to supply customers with foreign exchange, derivatives and other market
products, and to handle trading operations, including market making. It is also responsible forcomprehensive asset and liability management (“ALM”) for all banking activities.

Our aim is to build a stable earnings structure by reinforcing our risk
management capabilities and establishing ourselves as a global player.
 BASIC STRATEGY
1) Respond accurately to a wide range of customer needs.
2) Enhance our risk management functions.
 MHFG’S STRENGTHS Synergies arising from the largest customer base in Japan.
 Ability to develop products based on IT and FT.
 Skilled personnel with highly specialized knowledge.
 Advanced ALM methods.
Yasuo Tsunemi
Managing Executive Officer
Head of the ALM and Trading BU

 ACHIEVEMENTS IN FISCAL 2000 AND PLANS FOR FISCAL 2001
 Business Environment andCustomer Needs
 Market Environment in Fiscal 2000
• Domestic market interest rates rose
temporarily in summer. However, rates
subsequently fell again because of economic stagnation. U.S. interest rates
peaked after the FRB’s rate hike in May
but shifted to a downward trend andthat has accelerated since the end of theyear after a slow growth forecast.
 Growing Customer Demand for
Hedging Services• Balance sheet management has taken
on growing importance for companies inrecent years. In addition to risk associatedwith exchange and interest rates, companies increasingly need to hedge against
risks relating to equities, products, credit
and various events.
 Advances in IT and FT• There is a need to develop optimized hedging tools capable of controlling businessrisk using leading-edge FT. In addition, therapid trend toward Net business has created a need for business models capable ofaccommodating new advances in IT and FT.
56 MIZUHO Achievements in Fiscal 2000

 Plans for Fiscal 2001

 Operations in Fiscal 2000
• We worked closely with our offices toprovide a more proactive response tocustomer needs. By responding flexibly
to declining U.S. and yen interest rates
in the second half of the year, we wereable to achieve a successful performance.
 Expanding Customer Transactions• We assisted more customers than everin a wide range of products, including
foreign exchange, derivatives and CP,
by providing risk hedging schemes
tailored to customer needs.
 New Derivative Products• We introduced a variety of new derivatives in response to customer needs.
These included “weather derivatives”
to hedge against weather-related risks
associated with temperature and rainfall.
 Consolidation of Overseas Derivatives
Subsidiaries• Overseas subsidiaries specializing inderivatives were consolidated into
Mizuho Capital Markets Corporationin January 2001.

 Operations in Fiscal 2001
• We will continue to use our sophisticated know-how to respond positively tocustomers’ needs. We will also strengthen our market-making functions andmaintain ALM and trading operations
that reflect trends in interest rates,
exchange rates and other factors.
 Maximizing Synergies• We will continue to provide optimized
solutions for the three banks’ customers
through cross-selling, whereby derivatives
and other advanced financial products
are supplied and sold within the group.
 Utilizing IT and FT• Customer convenience is a top priority
for us. We are actively seeking new
business through the development of
new products and services, including an
Internet-based foreign exchange systemthat allows customers to carry out directtransactions, an Internet-based derivatives
system for branches and new derivatives
products based on advanced FT.

 Market Operations: Sales and Trading

Mizuho Dealing Room.

 Banking Operations: ALM
Asset and Liability Management
ALM for all three banks is managed by the ALM Market Risk Committee of Mizuho Holdings,
which is chaired by the Deputy President. This committee and other organizational elements
discuss and adjust risk planning and monitor the operational situation. The three banks use
indicators such as VAR (Value at Risk) and BPV (Basis Point Value) for managing their individual bond portfolios and monitoring interest rate gaps arising in connection with their deposits
and loans. The ALM committee of each bank assesses risks and uses derivatives and othertools to manage them. This approach stabilizes and strengthens the group’s earning structure.
Cash Flow Management
We successfully established integrated cash flow management skills for both yen and foreign
currencies by analyzing the funds gap, calculating available and required fund amounts accurately.
We keep sufficient liquid assets that can readily be turned into cash in the event of sudden
market shifts, and to maintain precise control of fund flows, we introduced a variety of risk
management indicators.

Using Advanced Financial Technology.

MIZUHO 57

CHAPTER 4

Responding to Customer Needs
The environment in which businesses operate changes dynamically.
Business Risks and Derivative Transactions
We offer risk hedging schemes and advice to meet the financial risk
control needs of our customers in addition to supplying derivatives
Hedging tools for various business risks
Project(swaps and options, etc.), foreign exchange, CP and other short-term
Finance
Arrangement of financing schemes
financial products.
Liquidation
M&A
In recent years, investors have increasingly paid attention to theProfit and loss
risk management capabilities of companies. In addition to conven[Assets][Liabilities]
Cash and deposits
Borrowings
tional interest and exchange rate derivatives, we are able to offer
Corporate bonds issued
Securities
customers a wide range of new derivatives based on such factors as
Raw materials
Facilities
crude oil and other commodities, credit, the weather and equities.
(factories, etc.)
These products help customers exercise proper control over business
CapitalWeather,
Equities
risks in their balance sheets. We are also actively involved in the Netetc.
business sector, including direct transactions with customers via theInternet.
Commodities
Interest rates, exchange rates
CreditUsing the networks, human resources, expertise and productdevelopment capabilities of the three banks, we are able to offer
services and market-linked products that are finely tuned to theneeds of our customers.
Global Network
We maintain a market trading network that links Tokyo, London, New York, Singapore andHong Kong. This network enables us to provide services to meet the needs of our globally
active customers. We are also equipped to provide timely services under the best possible
terms and conditions, thanks to a 24-hour market-making system for currency options andforeign exchange.
Trading Based on Advanced Risk Management
Links among the world’s major markets are expanding. We are building a structure capableof using advanced financial engineering and risk management systems to provide a wide
range of financial products, including exotic derivatives, at competitive prices.

Business Strategy of MIZUHO BUSINESS TOPICSDKB introduces easy-to-use ATMs
DKB has introduced a new ATM that will make ATM
usage easier, especially for physically challenged customers such as customers with eyesight difficulties and forcustomers unfamiliar with the operation of ATMs. In addition to a telephone-based assistance system, the newATMs offer audio and on-screen guidance which matches
the customer’s pace. Also, the new ATMs are designed sothat they can be easily accessed and used by customers inwheelchairs.

April 2000

Fuji Bank arranges financing for Russian giant gas
pipeline projectFuji Bank acted as sole lead arranger and agent for a
US$630 million facility to finance a gas pipeline link
between Russia and Turkey. The project, proudly stated by
the Japanese government as symbolic of the reopening offinance to Russia, involves support from Nippon Export
and Investment Insurance and the Japan Bank forInternational Cooperation. The project is the first largescale financing project involving Russia from the westernworld since that country’s financial crisis in 1998.

April 2000

58 MIZUHOIBJ advises on major M&A deal
Leveraging its experience gained through involvement in alarge number of past transactions, IBJ continued to provide
advisory services for numerous M&A deals in 2000. Major
deals during the year included the sale of Nissan MotorCo., Ltd.’s aerospace division to Ishikawajima-Harima
Heavy Industries Co., Ltd. and the consolidation of The
Setouchi Bank, Ltd. and The Hiroshima-Sogo Bank, Ltd.

Photo courtesy of NASDA

June 2000

DKB serves as lead arranger
of Japan’s first PFI projectAs lead arrangers, DKB and the Development Bank ofJapan signed an agreement in October 2000 to provide
financing for the Tokyo Metropolitan Bureau of
Waterworks’ co-generation power project, Japan’s first
Private Finance Initiative (PFI) project. The financing for the
project was provided in November 2000.

Photos courtesy of Tokyo Metropolitan Bureau of
Waterworks

October 2000

Fuji Bank begins sales of Balance Monogatarilifecycle investment trust
Fuji Bank has begun sales of the Balance Monogatari lifecycle investment trust, a product made up of three fundswith different risk levels. With Balance Monogatari, it ispossible for investors to freely switch among the funds at
no charge. As of April 2001, the outstanding balance ofthe fund exceeded ¥30 billion.

December 2000

December 2000

Fuji Bank serving as financial advisor for Taiwan
high-speed rail (Taiwan Shinkansen) projectFuji Bank is serving as financial advisor to a consortium ofJapanese companies (four trading companies and threemanufacturers) involved in Japan’s first Shinkansen trainsystem export project, a high-speed railway in Taiwan
to link Taipei with Kaohsiung, a distance of 345km. Fuji
Bank helped to lead the consortium to the successful signing of a US$3 billion contract for the export of railroad
equipment.

Seven IBJ project financing deals signed in 2000
receive Deal of the Year awards
Including the CBK Power Project in the Philippines, sevenproject financing deals for which IBJ acted as leadarranger and signed in 2000 were selected for Deal of theYear awards by the Project Finance International (“PFI”), theInternational Financing Review (“IFR”) and other publications.

CHAPTER 4DKB Internet Bank offers lottery tickets,foreign currency deposit services
and investment trust services online
DKB has expanded and enhanced the service menu of its
Internet banking services. In addition to around-the-clock
account balance inquiries, funds transfers and deposit andother traditional services, the DKB Internet Bank now handles lottery tickets, foreign currency deposits and investment trusts. This is the first time that a Japanese bank hasoffered lottery tickets over the Internet.

December 2000

PFI Yearbook 2001

January and February 2001

MIZUHO 59

Business Strategy of MIZUHOIBJ arranges three major MBO deals
During fiscal 2000, IBJ arranged three major managementbuyout (MBO) deals, including Nissan Motor Co., Ltd.’ssale of Vantec Corporation, a logistics subsidiary. All threedeals ranked among the largest ever in Japan, and eachdeal brought to bear IBJ’s advanced capabilities of analyzing business risks and creating innovative financial structures.

Lottery tickets offered for sale at Fuji Bank ATMs
Fuji Bank has started the Fuji Takarakuji Service by which it
is possible to easily purchase numbers-style lottery tickets(Numbers 3, Numbers 4, Mini Lotto, Lotto 6) from 3,000
Fuji Bank ATMs nationwide. This service marks the firsttime for lottery tickets to be sold through bank ATMs
in Japan.

January 2001

March 2001

IBJ securitization deal selected
for Deal of the Year award
IFR has selected The Dai-ichi Mutual Life Insurance Company’s MAGIC home mortgage securitization deal for its
Japanese Securitization Deal of the Year 2000 award.
Arranged by IBJ and involving more than ¥230 billion,
MAGIC is the largest securitization deal ever concludedin Japan.

Japan’s first comprehensive payment
management system
DKB has developed and launched the Payment Manager,
Japan’s first payment management system that enables
centralized management of payments via bank transfers
for everything from public utilities and lease fees to taxes
and rent.

January 2001

April 2001

60 MIZUHOInternal Control Systemsof MIZUHOCHAPTER 5

Chapter 5
Contents
Risk Management Structure of MIZUHO

62

Compliance Structure of MIZUHO70Internal Audit Structure of MIZUHO71

MIZUHO 61

Internal Control Systems of MIZUHO RISK MANAGEMENT STRUCTURE OF MIZUHO

levels of risk management and provide for audits to measure
the effectiveness and suitability of the risk management Commitment to Risk Management

structure. In line with these policies, we are working to

Basic Approach

strengthen risk management by adopting various measures

Progress in financial deregulation and internationalizationand striving to enhance the sophistication of our risk man-

has led to rapid growth in the diversity and complexity ofagement procedures.

banking operations, exposing financial institutions more thanever to various kinds of risk such as credit, market opera-

Overview of the Risk Management Structure

tions, IT, legal and settlement risks. We are well aware that

Each group subsidiary adopts the most appropriate risk man-in order to raise our corporate value while promoting theagement measures for its own business, while MHHD controls

health and stability of our banking business, adopting man-risk management for the group as a whole. More specifically,

agement and control measures that match our operations

the five core subsidiaries (DKB, Fuji Bank, IBJ, Mizuho

and their inherent risks is an issue of key importance to man-

Securities and Mizuho Trust & Banking) manage various

agement. Based on this awareness, MHHD’s Board oftypes of risk for themselves, their subsidiaries and affiliatedDirectors has laid down risk management policies that arecompanies, under the risk management policies of MHHD.

applicable to MHFG. These policies clearly define the kinds ofMHHD monitors the risk profile throughout the entire group,

risks to be managed, establish the organizational structure

and provides the five core subsidiaries with appropriate

and training of the human resources necessary for appropriate

instructions concerning risk management.

Risk Management Structure
Put forward risk
management policies
Give instructions concerning
risk management
MizuhoHoldings

Report on
risk profile

Give instructions concerning
risk management
Five Core Subsidiaries
DKB
Fuji Bank
IBJ
Mizuho Securities
Mizuho Trust & Banking

Subsidiaries
and affiliatedcompanies
Report on
risk profile

Individual subsidiaries manage risk for themselves, their subsidiaries and affiliates

Manage risk for the entire group

62 MIZUHO Consolidated Risk Managementof financial strength. To ensure the ongoing financial health

Basic Approachof the group, we regularly monitor how this risk capital is

There are two types of risk management. Credit and market

being used in order to obtain a proper grasp of the risk pro-risk management aim to secure profits by controlling their

file within this framework.

respective types of risk. Operations risk, IT risk and legal risk
management seeks to avoid losses by averting the occur-

Dealing with “Operational Risk”

rence of their respective types of risk.

We refer to operations risk, IT risk and legal risk collectively

For the first type, we use quantitative methods to control

as “operational risk.” Not only is it vital to manage these

total credit and market risk. For the second type, we also taketypes of risk by risk type according to their characteristics,

a proactive approach to enhance the sophistication of our

but they must also be controlled across the group on therisk management methods by tailoring them to the charac-

basis of loss-causing factors and the nature of the businessteristics of different types of risk.

line in question. It is important to grasp the risks involved ina quantitative manner and reduce them in a cost-effective
way. We are working aggressively to raise the sophistication

We have introduced an integrated risk management frame-of our operational risk management while keeping an eye on

work as a means of obtaining the clearest possible grasp ofprogress in the debate on minimum capital requirements

the group’s overall risk exposure. Starting in fiscal 2001, we

under BIS and the developments on quantitative methods ofhave initiated measures to keep such risk within the group’s

operational risk.

financial base.
More specifically, we allocate risk capital (economic capital
covering risk) to each BU and set ceilings to control the risk.
We also work to ensure that overall group risk (consolidated

 Minimum Capital Requirements for Operational Risk
Based on the recognition that a certain portion of capital should be allocatedfor operational risk (embracing operations risk, IT risk and legal risk), the BaselCommittee on Banking Supervision is currently studying concrete quantitative
methods with a view to introducing them in fiscal 2005.

basis) does not exceed the capital account and other measures

Allocation of Risk Capital

MHFG’s financial strength

MHFG’s risk exposure

BUs’ risk exposure
Capital account, etc.

Other risks exposure

MIZUHO 63

CHAPTER 5

Risk Capital Allocation

Internal Control Systems of MIZUHO Credit Risk Management

risk management policy. Also, as one of the business policy

Basic Approachcommittees, the Portfolio Management Committee was

We define credit risk as a financial institution’s exposure toestablished to discuss and coordinate overall credit portfolio

the risk that it might incur losses because of a decline in, ormanagement for MHFG. The Risk Management Department

total loss of, the value of assets (including off-balance sheet

and the Credit Risk Management Department, both of whichassets) as a result of deterioration in a counterparty’s finan-

are under the responsibility of the Chief Risk Officer

cial position. The group has already established the methods(“CRO”), jointly formulate and execute plans in connection

and structures necessary for grasping and managing credit

with basic matters relating to credit risk management.

risk, which has become increasingly complex because of

Of the five core subsidiaries, the three banks have estab-financial deregulation, internationalization and the growing

lished a system whereby their credit risk management divi-

sophistication of transactions.

sions, credit supervision divisions and credit assessment andWe have adopted two different but mutually complemen-

audit divisions are independent from their business divisions.

tary approaches toward credit risk management. The first ofSpecifically, they use the credit rating system and credit riskthese is to manage each individual transaction by controllingmeasurement tools to ascertain and monitor the status ofover the entire process for each individual transaction, fromthe portfolio, and manage it within credit limits. They are

granting the credit through to recovery, on the basis ofalso improving their credit decisions and post-transaction

assessments of the credit standing of the counterparties

management functions by assessing individual transactions

involved. This is primarily the responsibility of the five corefrom these viewpoints, auditing the results of self-assess-subsidiaries. The second is to manage the entire portfolio byments and providing risk management guidance to individual

accessing the possibility of loss given by the defaults of the

branches. Mizuho Securities and Mizuho Trust & Banking fol-counterparties through statistical methods. This is the respon-

low credit risk management procedures that suit the charac-sibility of MHHD as well as the five core subsidiaries.

teristics of their respective business sectors.
Based on reports from our five core subsidiaries, we draw

Credit Risk Management Structure

an overall picture of the group’s risk profile and adopt what-

The Board of Directors determines the most important mat-ever measures we may deem necessary.

ters pertaining to credit risk in accordance with our credit

Credit Risk Management Structure
Board of Directors

Mizuho Holdings

Executive Management Committee

CEO

Portfolio Management Committee

CRO

Risk Management Department

Credit Risk Management Department•Setting of basic policy•Guidance regarding risk management

DKB

64 MIZUHOFuji Bank•Report on risk profile

IBJ

MizuhoSecurities

Mizuho Trust& BankingOne of the most important elements of our risk manage-

Portfolio Management Structure

ment is to follow objective indications of a customer’s credit-

Portfolio-based credit risk management uses statistical meth-worthiness through our credit rating system. We determine aods to calculate the possibility that our credit portfolio may

customer’s credit rating using quantitative financial assess-generate bad debt losses. There are two key figures.

ments as well as qualitative judgements such as the assess-“Expected loss” is the average amount of loss forecast forment on the client’s strength in its business. Starting with

the next 12 months. “Unexpected loss” is the maximum

their overseas offices, the three banks have introduced theexcess amount in the case where losses exceed the expected

new unified credit ratings since April 2001. The rating sys-loss. “Expected loss” should be covered out of profits ontem, which is the product of their accumulated know-how,credit transactions, and is used as a reference value when

now provides integrated coverage of companies ranging

setting transaction guidelines. And “Unexpected loss”

from large to small and medium-sized enterprises, and takes

should be covered out of total capital, when it actually mate-ample steps to ensure consistency with the ratings of exter-rializes. The credit portfolio, therefore, is monitored fromnal rating agencies and internal borrower classifications.

various angles to ensure that unexpected losses are kept

We have also drawn up strict, unified standards for self-

applied to the portfolio where necessary.

by the Financial Services Agency, and have applied them to

In practice, credit portfolio management involves monitor-

our self-assessments since the March 2000 accounting period.

ing concentration risk (the uneven accretion of credit to certain major counterparties) and, where necessary, setting
credit limits to curtail any increase in risk arising from grant-

Credit Rating Flowchart

ing too much credit to certain individual counterparties or
Financial statements

Financial data

corporate groupings. It also involves the regular monitoringof credit concentration in certain industrial sectors or geographical areas to avoid any deterioration in the credit stand-

Quantitativemodelsing of transactions caused by economic fluctuations affecting
the sectors or geographical areas in question. Credit portfo-

Initial rating

three subsidiary banks in principle, but MHHD also monitors

Characteristics of operations
Business baselio management mentioned above is the responsibility of the

Qualitative
assessments

the group’s entire credit portfolio.

Marketing strengths, etc.
Credit rating

MIZUHO 65

CHAPTER 5

assessment based on the Financial Inspections Manual issued

within the level of the allocated risk capital, and limits areInternal Control Systems of MIZUHO Market and Liquidity Risk Management

and coordination of market risk management. The commit-

Basic Approachtee determines the entire group’s monthly funding andMarket risk means the risk that the company could incur

investment policies, discusses and coordinates matters relat-

losses because of a decrease in the value of assets and liabilities

ing to ALM policies, risk planning and market risk manage-(including off-balance-sheet assets) caused by fluctuations inment and proposes responses to emergencies such as

market risk factors such as interest rates, foreign exchange

sudden market changes. The CRO is responsible for matters

rates and bond and stock prices. It includes the risk of losses

relating to market risk management planning and opera-

incurred when it becomes impossible to execute transactions

tions. The Risk Management Department is responsible forin the market because of market confusion, or risk arisingmonitoring market risk, reports and analyses, proposals, set-from transactions at prices that are markedly less favorable

ting limits and guidelines, and for formulating and imple-

than normal.

menting plans relating to market risk management.

We have adopted a system whereby MHHD stipulates

The five core subsidiaries have established risk manage-

market and liquidity risk management for the group as ament divisions according to the scale and nature of theirwhole. More specifically, MHHD formulates market and liq-

market risk exposures to manage them at the individual

uidity risk management policies for the entire group, and thecompany level. Offices that engage in trading have also set

five core subsidiaries follow these policies in managing risk

up specialized risk management sections (middle offices) at

for themselves and other subsidiaries and affiliated compa-

their respective levels.
On the reporting side, the Risk Management Departmentnies. This system also allows MHHD to monitor and manage

receives the necessary data from the five core subsidiaries, as

the overall market and liquidity risk profile for the group.

well as reports on risk profile and compliance with risk limits,
both on a regular basis and as deemed necessary.

Market Risk Management Structure
Under our management system, the Board of Directors

Glossary

determines key matters pertaining to market risk manage-

ALM
Asset and Liability Management

ment in line with risk management policies. We have established the ALM & Market Risk Committee as one of thebusiness policy committees responsible for overall discussion

MHFG’s Market and Liquidity Risk Management Structure
Board of Directors

Mizuho Holdings

Executive Management Committee

CEO

ALM & Market Risk Committee

CRO

Risk Management Department•Report on risk profile•Application for limits• Put forward risk management policies• Approval of limits• Give instructions concerning risk management

DKB

66 MIZUHOFuji Bank

IBJ

MizuhoSecurities

Mizuho Trust& BankingBased on these reports, MHHD obtains a solid grasp of
the market risk management profile. Reports on the status ofnecessary funds, or when it is forced to procure funds atmuch higher interest rates than usual.

market risk and compliance with risk limits are submitted to

The management and reporting structures are fundamen-

the CEO on a daily basis, and to the Board of Directors andtally the same as those of the market risk management struc-the Executive Management Committee, both on a regularture described above, although the head of the ALM andbasis and as deemed necessary.

Trading BU is additionally responsible for matters relating to

We manage market risk using Value at Risk (“VAR”) as

planning and running cash flow management operations.

our principal measuring tool, supplementing it with stress

We measure liquidity risk using indices pertaining to cash

testing. In the second half of fiscal 2000, VAR on trading

flow such as ceilings on funds raised in the market. Limits on

activities averaged ¥9.8 billion (confidence interval: one-liquidity risk are discussed and coordinated by the ALM &tailed 99%; holding period: one day), ranging from a mini-

Market Risk Committee, discussed further by the Executive

mum of ¥7.2 billion to a maximum of ¥13.4 billion.

Management Committee, then determined by the CEO andFor management purposes, VAR limits and position limits

reported to the Board of Directors.
MHHD’s risk management policies have established classi-

nature of the various businesses in which the five core sub-fications for the cash flow conditions affecting MHFG, rang-

sidiaries engage. These limits are discussed and coordinateding from “normal” to “cause for concern” and “critical,”by the ALM & Market Risk Committee, discussed further by

and has laid down response procedures for dealing with

the Executive Management Committee, then determined bycases where conditions are deemed “cause for concern” or

the CEO. At each stage, various factors are taken into account,are “critical.”such as business strategies, historical ceiling usage rates, riskbearing capacity (profits, total capital and risk management
systems), profit targets and the market liquidity of the products involved.
Market liquidity risk to close positions is monitored andmanaged using the most-suitable methods available for each

Glossary
VAR (value-at-risk)
VAR is one of several methods used to measure market risk. It is defined as
the maximum possible loss that could be incurred on our portfolio as a resultof market movements within a certain period (holding period) and degree ofprobability (confidence interval). The actual amount of the VAR may vary
according to the length of the holding period and the confidence interval, as
well as the models used for measuring the volatility of market risk factors.

type of financial instrument.

Liquidity Risk Management Structure
We define liquidity risk as the risk of losses arising when afinancial institution faces funding difficulties because a deterioration in its financial position makes it difficult to raise the

MIZUHO 67

CHAPTER 5

based on interest rate sensitivity are set according to theInternal Control Systems of MIZUHO Management of Other Risks

incompleteness in computer operations, or illegal or unau-

Operations Risk Management

thorized use of computer systems.

Operations risk is the risk of incurring tangible or intangible

We have drawn up a unified basic policy for use by thelosses because operations are performed incorrectly or inap-

entire group as the basis for our IT risk management frame-

propriately.

work. Each of the five core subsidiaries has set out its own

We have compiled the “Fundamental Policy for Operations

security policy in line with this basic policy and is working to

Risk Management” for use by the entire MHFG. The five coreensure the protection and safety of informational assets

subsidiaries, in turn, have set out their own basic policies for

relating to systems.

managing operational risk in conformance with MHHD’s pol-The IT & Systems Planning Department receives reports onicy, creating a uniform framework for managing this kind of

IT risk from the five core subsidiaries both regularly and as

risk throughout MHFG.

required. The head of the IT, Systems & Operations Group

MHHD receives reports on the operations risk manage-

ascertains the sources, scale and nature of IT risk and, after

ment situation at the five core subsidiaries on a regular basis

overall assessment and monitoring, submits reports to theand as required. These reports provide the head of the IT,

CEO and other members of top management both regularly

Systems & Operations Group with an appropriate picture ofand as required.

the risk situation throughout MHFG, enabling him to manage overall operations risk. He also submits reports on the

Legal Risk Management

management situation to the CEO and other members ofLegal risk is the risk of incurring tangible or intangible losses

top management on a regular basis or as required.

as a result of infringements of laws and contracts, conclud-

We are well aware that speedy and accurate operations

ing inappropriate contracts and other legal factors.

are the foundations upon which customer trust is built, andWhile deregulation has resulted in considerable progress

we will continue to do everything in our power to raise thein liberalizing and diversifying the banking business, banklevel of our operations risk management procedures.

managements are also required to be fully accountable for
their actions. In this environment, we recognize that legal

IT Risk Management

risk management is an issue of key importance for managing

IT risk is the risk of being exposed to tangible or intangible

the group, and the Legal Affairs Department of the Audit

losses arising from system defects such as failures, faults, orand Compliance Group is responsible for the basic planningand administration of legal risk management.

68 MIZUHOWe have drawn up a uniform basic policy on legal risk man-

It usually encompasses various kinds of risk, including credit

agement. To mitigate legal risk, we perform legal checks inrisk, liquidity risk, operations risk and legal risk. In recent

connection with management decisions, new products andyears, moreover, finding international solutions for Herstattnew businesses, provide centralized management of legalrisk—the risk arising from time zone differences in interna-

information concerning the enactment, revision and aboli-tional currency settlements—has attracted a great deal oftion of legislation, and identify and respond to legal risks

attention.

such as litigation. The five core subsidiaries manage legal risk

We have adopted various methods for averting different

in accordance with MHHD’s basic policy, and adopt andtypes of settlement risk. We use netting procedures toimplement similar measures.

reduceactualsettlement

amounts,

Real-TimeGross

Settlements (RTGS) to minimize the settlement time lag and
Settlement Risk Management

the Continuous Linked Settlement Bank (CLSB) to cut settle-

Settlement risk is the risk of incurring losses because settle-

ment risk.

ments are not executed according to schedule for some reason.
CHAPTER 5

MIZUHO 69

Internal Control Systems of MIZUHO COMPLIANCE STRUCTURE OF MIZUHOEach subsidiary has established its own compliance struc-

Basic Compliance Policy

ture in line with the policies laid down by MHHD. MHHD

We are acutely conscious of our social responsibilities andobtains a direct picture of the status of compliance through-public mission at all times as Japan’s leading comprehensive

out the group from reports submitted by the five core sub-financial group. We, therefore, work to ensure that we

sidiaries, and adopts appropriate responses wheneverobserve all laws and regulations, and pursue corporate activi-

necessary. Affiliates of the five core subsidiaries are managed

ties in a fair and honest manner that conforms to the norms

in a similar way through their parent companies.

accepted by society. MHHD and the five core subsidiaries see
rigorous compliance as a fundamental principle of manage-Compliance Structure

ment. For this reason, we have laid down a basic common
policy that satisfies the highest global standards for compliance, and, by promoting this stance, are working to win highMizuho Holdings
Board of Directors

praise from shareholders and the markets, and to earn forourselves the broadly based trust of society. Furthermore, torealize the Basic Principles of the Consolidation, we have

CEOInternal Audit & Compliance Committee

drawn up the Mizuho Code of Conduct, which lays down
clear and concrete standards of ethical behavior. We have
distributed it to all executives and employees of MHFG, andHead of Audit and Compliance Group(Department in charge: Compliance Department)

are doing all we can to ensure that they are fully acquainted
with its contents and act in accordance with them.
Five Core Subsidiaries

Compliance Activities
In order to check that our business activities are appropriate
in terms of compliance and audits, we have established theInternal Audit & Compliance Committee, which consists ofall heads of the Planning and Administration Headquarters
and includes external specialists in legal and accounting matters among its members. Moreover, we have established theCompliance Department under the head of the Audit andCompliance Group, who is a managing executive officer ofMHHD. This department is responsible for compliance planning and implementation, and controls compliance management throughout MHFG. The head of every organizational
unit within MHHD is made responsible for compliance, andtakes charge of guidance and implementation in connection
with compliance in the workplace.

70 MIZUHO

Affiliates of Five Core Subsidiaries INTERNAL AUDIT STRUCTURE OF MIZUHOThe head of the Audit and Compliance Group also chairs

Basic Internal Audit Policies

the Internal Audit & Compliance Committee, and submits

Internal audits are independent, comprehensive and objective

reports on decisions of the committee and other important

assessments of the effectiveness of internal control systems,

matters directly to the Board of Directors.

and include advice, guidance and remedial recommendations
in connection with any problems that may be unearthed.

MHHD’s Internal Audit Management Structure

The internal audit divisions of the five core subsidiaries

MHHD’s Internal Audit & Compliance Committee discusses

assess the appropriateness and effectiveness of businessand determines important matters relating to compliance

operations at each subsidiary in accordance with the basic

and audits at MHHD and subsidiaries managed by MHHD ininternal audit policies that MHHD establishes for the group,line with basic policies determined by the Board of Directors.

and offer advice, guidance and remedial recommendations

In addition to controlling internal audits for the entire

in connection with any problems.

group under the head of the Audit and Compliance Group,
MHHD’s Internal Audit Department carries out internal audits

healthy development of group management by monitoringof the holding company itself, thus providing the checks andthe extent to which internal control achieves its objectives—balances necessary to ensure that its business is being run inappropriate risk management, efficient and effective busi-

an appropriate manner.

ness operations, reliable financial reporting and compliancewith laws, regulations and internal rules.

MHHD provides centralized assessment and management of
the execution of internal audits in the five core subsidiaries.
The latter have established their own management systems for internal audits in line with the basic policies laid
down by MHHD. In principle, the management system
extends via the five core subsidiaries to their affiliates.

Mizuho Holdings
Advice, guidance and remedial recommendations

MHFG’s Internal Audit Management Structure

MHFG’s Internal Audit Management Structure

Board of Directors
CEOInternal Audit & Compliance Committee

Head of Audit
and Compliance Group(Department in Charge: Internal Audit Department)

MHHD makes assessments based on reports on the resultsof internal audits submitted by the five core subsidiaries
whether the audits are appropriate in terms of structure,methodologies and depth, and whether the internal control
systems adopted by the core subsidiaries and their affiliates
are effective. Where necessary, MHHD offers advice, guid-Five Core Subsidiaries
Board of Directors

Executive in Charge of Internal Audit
Internal Audit Divisions

ance and remedial recommendations. Reports on the resultsof these assessments are submitted to MHHD’s Internal
Audit & Compliance Committee, CEO and Board of
Directors.

MIZUHO 71

CHAPTER 5

The purpose of internal audits is to contribute to theCommunity Activities of MIZUHO MHFG’s Community Activities

Safety Association recognized the Bank’s contribution overWe are conscious of the importance of the responsibility to

the years when it commended the Bank for its promotion ofcontribute to society as a “good corporate citizen,” and will

traffic safety at the 41st National Traffic Safety Convention.

actively engage in various local community activities. We will

Contributions to Local Communities

also support volunteer activities of our executives andin the United States

employees.

Group employees have been very active in community activities in the United States under the Community Reinvestment

 Corporate Citizenship Activities

Act (CRA). Not only have staff members and their families

MHFG participates in many charitable activities at home andparticipated in various volunteer activities, but the DKB

abroad.

Foundation and the IBJ Foundation have

Support for Disaster Relief

also donated funds to support groups

Employee donations and corporate contributions wereandactively collected for funds raised to help victims in the after-

working in low-income areas. Last year,

math of disasters at home and abroad, including victims of

The Fuji Bank and Trust Company (Fuji

volcanic eruptions in the islands off Japan’s Izu Peninsula andBank’s subsidiary in New York) was rec-earthquakes in western India.

ognized by the U.S. Treasury Depart-other

non-profit

organizations

In February 2001, executives and employees of the five core

ment for its donations, lending andRight: Lawrence H.
Summers, former
Secretary of the
U.S. Treasury

subsidiaries collected approximately ¥11.5 million for the Izu

investments in community organizations,island victims and the money was sent to them via the Tokyoand won the Bank Enterprise Act Prizemetropolitan government.

for the second successive year.

Support for the All-Japan “Small Kindness”

Contributions to Local Communities

Composition Contest

in Asia

To support the 25th All-Japan “Small Kindness” Composition

Our employees both in Japan and at our operations inContest held in December 2000, MHFG presented theThailand, Indonesia, China and Taiwan contributed to the local“Mizuho Prize” as an award for special excellence. This

communities by donating funds and engaging in support

annual contest is sponsored by the “Small Kindness”

activities for disadvantaged children. MHFG provided assistance

Movement, which invites elementary and junior high schoolwith scholarships in Southeast Asia and engaged in philan-

students throughout Japan to send in compositions on theirthropic activities in Taiwan through the DKB Asian Fund andexperiences of kindness.

the DKB Aishin Charity Fund. It also instituted the “Fuji Bank

Traffic Safety Campaign

International Finance and Eco-

Each year, as part of Fuji Bank’s “Yellow Badge Traffic Safety

nomics Lectures” at the China

Campaign,” first-graders throughout Japan are provided yel-Institute of Financing in Beijing,

low badges that, when worn, signify they are automaticallywhich was set up by the People’s

covered by traffic accident insurance if they are involved in

Bank of China and others.
With Thai children

an accident on their way to or from school. Fiscal 2000
marked the 37th year of this campaign, which started in1965 and has now provided insurance coverage for a totalof 45.86 million children. In January 2001, the Japan Traffic

72 MIZUHOGlossary
CRA (Community Reinvestment Act)The CRA obliges enterprises involved in the financial sector to contribute to
the local communities in which they do business.

 Activities of Philanthropic Foundations

Fuji Bank International Foundation

The following five philanthropic foundations have close rela-

The Fuji Bank International Foundation was set up in 1991,

tionships with MHFG, and provide grants for various purpos-

primarily to provide scholarships for overseas students study-es,

ing in Japan. Since its founding, it has assisted a cumulative

includingsocialwelfare,education,scholarships,

total of 102 students, 22 of them earning doctoral degrees.

Heart Foundation

Kawakami Memorial Foundation

The Heart Foundation was created in 1972. Its activities

The Kawakami Memorial Foundation was established ininclude making social contributions by supporting education

1957 to encourage academic research by young people. It

in rural areas, and providing education for physically chal-

provides grants for young engineering researchers recom-

lenged children and welfare assistance for senior citizens. It

mended by universities, holds essay contests in the areas ofhas also donated a cumulative total of 221 welfare vehicles,

law and economics (from among the public) and offers

or “Heart” automobiles, to nursing care homes for senior cit-

scholarships to overseas students studying in Japan who areizens throughout Japan.

specified by their universities.

Fuji Memorial Foundation

Koeikai

The Fuji Memorial Foundation was set up in 1980 to provide

This foundation was established in December 1954. Among

grants for social welfare, funds for translating books into

other things, it provides loans for education-related expenses

Braille for visually impaired university students (cumulative

to excellent students recommended by universities who facetotal of 100) and electrically powered wheelchairs (cumula-economic hardships, and over the years has granted scholar-

tive total of 485). Since its founding, it has also donated aships to 662 people.

total of 171 buses and microbuses equipped with elevators
for the mentally and physically handicapped.

 Topics: Support for Art, Culture and Sports
Coming-of-Age Day Concerts
This year’s “Coming-of-Age Day Concert” took place at the Suntory Hall in Tokyo on the
Coming-of-Age Day national holiday (January 8, 2001).
These annual concerts are held with a view to supporting young artists and popularizingclassical music among the next generation of young people.

“Sanba-so” performed by theNoh comic actor Mansai Nomura

Main Sponsor of Tokyo International Women’s Marathon
MHFG acted as main sponsor of the 2000 Tokyo International Women’s Marathon held on
November 19, 2000. We contribute to the promotion of sports by creating opportunities foras many people as possible to come into contact with sports through events such as
marathons.

Start of the 2000 Tokyo International Women’s Marathon

MIZUHO 73

CHAPTER 6

international exchange and academic research.

Environmental Awareness of MIZUHO MHFG’S ENVIRONMENTAL ACTIVITIESFund for Nature (WWF) Japan, and personal loans for pur-

 Basic Approachchasers of environmental protection equipment such as

We are aware that it is our social responsibility to take into

garbage disposal equipment.

account environmental issues as we try to maintain a balance

Moreover, the three banks and their affiliates, Mizuho

between economic development and environmental preser-

Securities, Dai-Ichi Kangyo Research Institute, Fuji Researchvation. Our specific objectives are as follows:

Institute Corporation and IBJ-DL Financial Technology Co.,

 In compliance with laws and ordinances relating to theLtd. evaluate the environmental risks that customers faceenvironment, we will engage in energy and resource con-and provide research and advice on how to manage theseservation efforts that include separating and collecting

issues in line with the Kyoto Mechanisms on emissions

garbage by type, and using recycled materials.

reductions and trading schemes. They also provide wide- In addition to supporting environmental protection organi-ranging advisory services, including advice on using weather

zations and our customers’ programs for dealing with

derivatives to cover potential business losses arising fromenvironmental issues, we will offer financial products andunusual weather conditions, support for LCA activities andservices that contribute to environmental preservation.

assistance with putting environment business related venturefirms on an active business footing.

Fuji Bank supports the “All-Japan Elementary
and Junior High School Students’ Environmental
Art Contest.“

 Environmental Risk Assessment
in Financial Operations
There has been an increase in the number of cases where

CHAPTER 7

 The Environmental Issues Committee

MHFG evaluates the environmental risk associated with com-

We have established an in-house Environmental Issues

panies and businesses. In the area of M&A, some cases

Committee

basic

involve factoring in the environmental risks posed by theapproach. The committee is responsible for discussing poli-potential acquisition. In credit transactions such as projectcies relating to the environmental issues affecting the group,

finance that have clearly defined objectives, there are cases

implementing countermeasures and educational activities.

where assessments of the project’s impact on the environ-

For the foreseeable future, its main task is to build an envi-

ment are reflected in the credit decision or the terms of theronmental management system for the group.

contract. We are studying ways to better reflect environmen-

in

line

with

the

above-mentioned

tal risk in our financial operations.
 Developing Financial Products and Services
that Contribute to Environmental Endeavors
and Supporting New Businesses
We develop and offer financial products and services specifically designed to contribute to the endeavors of customers in
the environmental area. Financial products offered by DKB
include deposits which allow donations to the World Wide

74 MIZUHOGlossary
LCA (Life Cycle Assessment)
LCA is a process for evaluating the environmental burdens imposed by a product throughout its life cycle, from production of raw materials to eventual disposal as waste.

Financial Analysis of MIZUHO
Mizuho Holdings’ Performance and Financial Position

Chapter 8
Key Indicators of Consolidated Performancefor the Fiscal Year Ended March 31, 2001

76

Key Indicators of Non-Consolidated Performancefor the Fiscal Year Ended March 31, 2001

77

The Financial and Economic Environment

78

Results for the Fiscal Year Ended March 31, 2001

79

Disclosure of Asset Quality

88

Implementation of the Revitalization Plan (Fiscal 2000)

95

MIZUHO 75

CHAPTER 8

Contents

Financial Analysis of MIZUHO KEY INDICATORS OF CONSOLIDATED PERFORMANCE FOR THE FISCAL YEAR ENDED MARCH 31, 2001
(Billions of yen)

Fiscal year ended March 31, 2001

Total Income
Net Income¥

5,913.7
211.2

Total Shareholders’ Equity
Total Assets
Deposits
Debentures
Loans and Bills Discounted
Securities

6,254.2
163,455.4
80,176.4
17,848.2
92,286.7
28,062.5

Total Shareholders’ Equity per Share (yen) (Note 1)
Net Income per Share (yen) (Note 2)
Net Income per Share Assuming Dilution (yen)450,667.56
20,524.13
20,109.99

Risk-based Capital Ratio (BIS Capital Ratio)

11.39%Net Return on Equity
PER (Times)

4.5%
34.34xCash Flows from Operating Activities
Cash Flows from Investment Activities
Cash Flows from Financing Activities

2,918.7(3,362.1)(334.7)

Cash and Cash Equivalent at the End of the Year2,219.8

Notes: 1. Total Shareholders’ Equity per Share: (Total Shareholders’ Equity – (Shares of Preferred Stock x Issued Value)) / Shares of Common Stock (excluding Treasury Stock).
2. Net Income per Share: (Net Income – Cash Dividends Declared (Preferred Stock)) / Average Outstanding Shares of Common Stock (excluding Treasury Stock).

76 MIZUHO KEY INDICATORS OF NON-CONSOLIDATED PERFORMANCEFOR THE FISCAL YEAR ENDED MARCH 31, 2001
(Billions of yen)

Fiscal year ended March 31, 2001

Operating Income
Net Income
Common Stock and Preferred Stock
Number of Shares Issued and Outstanding¥ 114.0
97.7
2,572.0
Common SharesFirst Series Class I Preferred Shares
Second Series Class II Preferred Shares
Third Series Class III Preferred Shares
Fourth Series Class IV Preferred Shares
Fifth Series Class V Preferred Shares
Sixth Series Class VI Preferred Shares
Seventh Series Class VII Preferred Shares
Eighth Series Class VIII Preferred Shares
Ninth Series Class IV Preferred Shares
Tenth Series Class X Preferred Shares(

Total Shareholders’ Equity
Total Assets
Total Shareholders’ Equity per Share (Yen) (Note 1)
Dividend per Share of Common Stock(Interim dividends per share) (Yen) (Note 2)

9,205,856.53 shares
33,000 shares
100,000 shares
100,000 shares
150,000 shares
52,411 shares
150,000 shares
125,000 shares
125,000 shares
140,000 shares
140,000 shares)

6,561.4
7,412.6
483,949.97
7,000
22,5008,200
14,00047,6007,500
42,00011,0008,000
17,5005,380

Common SharesFirst Series Class I Preferred Shares
Second Series Class II Preferred Shares
Third Series Class III Preferred Shares
Fourth Series Class IV Preferred Shares
Fifth Series Class V Preferred Shares
Sixth Series Class VI Preferred Shares
Seventh Series Class VII Preferred Shares
Eighth Series Class VIII Preferred Shares
Ninth Series Class IX Preferred Shares
Tenth Series Class X Preferred Shares

3,500
11,2504,100
7,000
23,8003,750
21,000
5,500
4,000
8,750
2,690

(
Net Income per Share of Common Stock (Yen) (Note 3)
Net Income per Share Assuming Dilution (Yen)

9,404.65
9,218.80

PER (Times)
Dividend Propensity (Note 4)

74.96x37.21%)

Notes: 1. Total Shareholders’ Equity per Share: (Total Shareholders’ Equity – Shares of Preferred Stock x Issued Value) / Shares of Common Stock.
2. With regard to Dividends per Share of Common Stock, “Stock Transfer Payments” were paid to shareholders of common stock of DKB, Fuji Bank and IBJ as of September 27, 2000
instead of interim cash dividends for fiscal 2000. The figures mentioned for interim dividends per share comprise said “Stock Transfer Payments.”
3. Net Income per Share: (Net Income – Cash Dividends Declared (Preferred Stock)) / Average Outstanding Shares of Common Stock.
4. Dividend Propensity: Cash Dividends Declared (Common Stock) / (Net Income – Cash Dividends Declared (Preferred Stock)). The Dividend Propensity does not include the abovementioned Stock Transfer Payments.

MIZUHO 77

CHAPTER 8

Common SharesFirst Series Class I Preferred Shares
Second Series Class II Preferred Shares
Third Series Class III Preferred Shares
Fourth Series Class IV Preferred Shares
Fifth Series Class V Preferred Shares
Sixth Series Class VI Preferred Shares
Seventh Series Class VII Preferred Shares
Eighth Series Class VIII Preferred Shares
Ninth Series Class IX Preferred Shares
Tenth Series Class X Preferred SharesFinancial Analysis of MIZUHO THE FINANCIAL AND ECONOMIC ENVIRONMENT The Economic Conditions in Japan and Overseas
The overseas economic condition in fiscal 2000 was influenced to a considerable extent by the U.S. economy, which decelerated sharply from the second half of the year after several years of sustained expansion. There was growing concern that thismight cause an economic downturn in certain parts of Asia. Despite the slowdown in the U.S. economy, the recovery trend inEurope remained firm overall. Regarding the Japanese economy, a real self-sustained recovery was not achieved due to sluggish
individual consumption from a severe labor/earnings environment, despite the increase in capital expenditures made to support
the economy and to improve corporate earnings. Until the autumn of 2000, exports increased favorably, but from winteronwards, the growth rate declined under the impact of the deceleration of the U.S. economy, slowing down the recovery inJapan’s production activity.
Given the economic environment, the Bank of Japan (“BOJ”) abandoned its zero interest rate policy in August 2000, but has
followed a quantitative easing policy since February 2001. In March 2001, the prolonged decline in demand prompted the government to recognize officially that the economy was experiencing a gradual deflation, and in April, it adopted the Emergency
Economic Package containing numerous initiatives designed to promote structural reform of the Japanese economy.
 The Financial Markets and the Financial Sector
Looking back at the financial markets in fiscal 2000, the yen weakened against the dollar in the foreign exchange market,
reaching just over ¥120=US$1 at the fiscal year-end of March 31, 2001. After the BOJ abandoned its zero interest rate policy,
long-term yields on Japanese government bonds (“JGBs”) climbed to over 2% through the autumn, but the subsequent deterioration in business sentiment has caused their yields to fall to 1-1.5%. Japanese stock prices followed a downward trend as
they moved in tandem with U.S. stock prices.
In the financial sector, the “Big Bang” reforms have made steady progress, and the authorities have taken steps to promotefurther integration of financial regulators. There was also significant progress in the realignment of the financial sector as consolidations and alliances among financial institutions gathered momentum under the impact of revisions to Japan’s Commercial
Code and related tax regimes, while competition intensified as new players from other sectors began to enter the market.

Trends in Japanese Financial Markets(%)(Yen/Dollar)
130

3.0

Yen/Dollar Market(right scale)

2.5

125

Long-Term Prime Rate
Newly Issued Government Bond Yield (10-Year)

2.0

1.5

120

115

Short-Term Prime Rate
Euroyen TIBOR(3-month)

1.0

110

Call Rate(Uncollateralized
overnight)

0.5

0Jan. 2000

78 MIZUHO

105

100

Apr. 2000

July 2000

Oct. 2000

Jan. 2001

Apr. 2001

 RESULTS FOR THE FISCAL YEAR ENDED MARCH 31, 2001
 Consolidated Accounts
1. Scope of Consolidation and Application of the Equity Method
March 31, 2001

Number of consolidated subsidiaries
Number of affiliates accounted for under the equity method

290 companies
91 companies

The main consolidated subsidiaries are The Dai-Ichi Kangyo Bank, Ltd. (“DKB”), The Fuji Bank, Ltd. (“Fuji Bank”), The Industrial
Bank of Japan, Ltd. (“IBJ”) (collectively, the “three banks”), Mizuho Securities Co., Ltd. and Mizuho Trust & Banking Co., Ltd.
The main affiliates accounted for by the equity method were The CIT Group, Inc., The Chiba Kogyo Bank, Ltd. and Shinko
Securities Co., Ltd.

2. Consolidated Profits and Losses(Billions of yen)

Fiscal year ended March 31, 2001

Consolidated Gross Profits
Net Interest Income
Net Fiduciary Income
Net Fee and Commissions Income
Net Trading Income
Net Other Operating Income
General and Administrative Expenses¥

2,149.3
1,353.9
65.1
427.9
156.5
145.8
1,228.6

Credit-related Costs

851.9

Net Gains related to Stocks and Other Securities

515.0

Equity in Earnings from Investment in Affiliates

18.0

Others(121.7)

Income before Income Taxes and Minority Interests

480.0

Income Tax Expenses–Current

51.6

Income Tax Expenses–Deferred

146.3
70.8

Net Income

211.2

Net Income per Share of Common Stock (Yen)¥20,524.13

Notes: 1. Consolidated Gross Profits: Net Interest Income + Net Fiduciary Income + Net Fee & Commission Income + Net Trading Income + Net Other Operating Income.
2. Credit-related Costs = Expenses related to Portfolio Problems + Provision of General Reserve for Possible Losses on Loans.

(1) Consolidated Gross Profits
Consolidated Gross Profits amounted to ¥2,149.3 billion.
Net Interest Income reached ¥1,353.9 billion, made up of ¥2,472.4 billion in Loans and Bills Discounted and ¥1,039.5 billion
in Interest in Deposits and Debentures.
Net Fiduciary Income was ¥65.1 billion, primarily from Mizuho Trust & Banking and The Yasuda Trust & Banking Co., Ltd.
Net Fee and Commissions Income amounted to ¥427.9 billion, mainly from commissions related to deposit, bond and lending operations, and exchange fees and commissions received/paid.
Net Trading Income was ¥156.5 billion.
Other Operating Income amounted to ¥145.8 billion, mainly due to Net Gains related to Bonds.

MIZUHO 79

CHAPTER 8

Minority Interests in Net Income

Financial Analysis of MIZUHO(2) General and Administrative Expenses
Although the Accounting Standard for Employee Retirement Benefits was implemented, efforts to cut costs resulted in Generaland Administrative Expenses of ¥1,228.6 billion.
(3) Credit-related Costs
Credit-related Costs was ¥851.9 billion, as a result of writing off claims and providing for the reserve for possible loan losses
based on strict self-assessment on a whole group basis.
(4) Net Gains / Losses Related to Stocks and Other Securities
As a result of the unwinding of the cross shareholdings, Net Gains related to Stocks and Other Securities reached ¥515.0 billion.
(5) Net Income
As a result of the above, Income before Income Taxes and Minority Interests amounted to ¥480.0 billion after accounting for
General and Administrative Expenses, Credit-related Costs, and Others.
Net Income was ¥211.2 billion after taking ¥51.6 billion in Income Tax Expenses–Current, ¥146.3 billion in Income Tax
Expenses–Deferred and ¥70.8 billion in Minority Interests in Net Income into account for Income before Income Taxes andMinority Interests.
Use and Source of Funds(Billions of yen)

Fiscal year ended March 31, 2001
Average balance

Yield

Use of Funds
Loans and Bills Discounted
Securities
Call Loans and Bills Purchased
Due from Banks¥129,208.3
91,543.6
29,571.9
3,773.6
3,157.1

2.71%
2.70
1.52
9.08
4.36

Source of Funds
Deposits
Debentures
Call Money and Bills Sold
Commercial Paper
Borrowed Money

121,224.4
76,960.1
19,923.5
12,528.8
1,424.1
4,216.5

1.76
1.06
1.04
3.82
2.48
2.77

Net Fee and Commission Income(Billions of yen)

Fiscal year ended March 31, 2001

Fee and Commission Income
Deposits, Debentures and Lending Business
Remittance Business
Securities-related BusinessAgency Business
Safe Custody and Safety Deposit Box Business
Guarantee Business
Trust-related BusinessFee and Commission Expenses
Remittance Business

80 MIZUHO¥513.1
116.3
114.8
78.3
30.6
7.8
29.8
35.9
85.2
27.7

3. Consolidated Assets and Liabilities(Billions of yen)March 31, 2001

Total Assets
Loans and Bills Discounted
Securities
Trading Assets
Customers’ Liabilities for Acceptances and Guarantees
Other Assets¥163,455.4
92,286.7
28,062.5
10,877.4
6,129.6
14,940.7

Total Liabilities
Deposits
Debentures
Call Money and Bills Sold
Other Liabilities

156,449.2
80,176.4
17,848.2
13,208.0
21,186.8

Minority Interests

751.9

Shareholders’ Equity

6,254.2(1) Assets
Securities at year-end balance was ¥28,062.5 billion.
With regard to unrealized gains/losses on other securities (available for sale) at year-end, the downward trend of the stock
market resulted in unrealized losses of ¥275.6 billion.
Loans and Bills Discounted at year-end was ¥92,286.7 billion.
Non-Accrual, Past Due & Restructured Loans amounted to ¥4,556.2 billion, or 4.94% of total Loans and Bills Discounted.
Total Assets came to ¥163,455.4 billion.
(2) Liabilities and Minority Interests
Total Liabilities was ¥156,449.2 billion, made up of ¥80,176.4 billion in Deposits, and ¥17,848.2 billion in Debentures.
Minority Interests was ¥751.9 billion.
(3) Shareholders’ Equity
Shareholders’ Equity stood at ¥6,254.2 billion.
MHHD had a Risk-based Capital Ratio (BIS Capital Ratio) of 11.39%.
Risk-Based Capital Ratio (BIS Capital Ratio)(Billions of yen)

BIS Capital Ratio (%)
Tier I Ratio (%)
Tier I
Tier II
Unrealized Gains and Losses on Securities Posted
Revaluation Difference
Subordinated Debt
Deductions from Capital

11.39
5.97
¥ 6,292.6
5,914.6—
401.5
4,718.5
202.3

Capital12,004.9

Risk-based Assets

105,317.9

MIZUHO 81

CHAPTER 8

March 31, 2001

Financial Analysis of MIZUHO Aggregated Figures of the Three Banks
1. Aggregated Figures of the Three Banks
Aggregated figures of the three banks are made up of simple totals of the non-consolidated results of DKB, Fuji Bank and IBJ.
Since the consolidated financial statements of MHHD are mainly made up of the non-consolidated financial statements ofthe three banks and no comparative figures were available due to this being the first fiscal year of MHHD, the following table isprepared for the readers’ information.
Differences between MHHD Figures and Aggregated Figures of the Three Banks(Billions of yen)

Fiscal year ended March 31, 2001
MHHD
(Consolidated)(A)

Gross Profits
Net Interest Income
Net Fiduciary Income
Net Fee and Commissions Income
Net Trading Income
Net Other Operating Income¥

2,149.3
1,353.9
65.1
427.9
156.5
145.8

Aggregated Figuresof the Three Banks(B)¥

1,639.4
1,194.8
–
234.7
107.1
102.6

¥

(A) – (B)(B) / (A)

509.8
159.1
65.1
193.1
49.3
43.1

76.28%
88.25
0.00
54.86
68.47
70.41

Credit-related Costs

851.9

693.8

158.1

81.44

Net Income

211.2

202.6

8.6

95.91

163,455.4
92,286.7
28,062.5

148,971.4
85,697.7
27,310.7

14,484.0
6,589.0
751.8

91.14
92.86
97.32

Total Assets
Loans and Bills Discounted
Securities

2. Profits and Losses
 Profits and Losses
Aggregated Net Business Profits for the three banks (before Provision of General Reserve for Possible Losses on Loans)decreased by ¥23.6 billion from the previous year to ¥782.9 billion, primarily because of a fall in market-related profits.
As a result of the unwinding of cross shareholdings, Net Gains related to Stocks and Other Securities reached ¥321.5 billion.
Although Expenses related to Portfolio Problems decreased by ¥171.6 billion from the previous year, we nevertheless posted¥695.5 billion in Expenses related to Portfolio Problems owing to strict self-assessments as part of our ongoing efforts to build arobust financial structure.
Net Income decreased by ¥48.6 billion from the previous year to ¥202.6 billion.

82 MIZUHOProfits and Losses (Aggregated Figures of the Three Banks)(Billions of yen)

Fiscal year ended
March 31, 2001

Fiscal year ended
March 31, 2000

Change¥1,249.0¥1,344.7¥ (95.7)

390.4

317.5

72.8

Gross Profits
Net Interest Income
Net Fee and Commissions Income
Net Trading Income
Net Other Operating Income
Net Gains related to Bonds

1,639.4
1,194.8
234.7
107.1
102.6
71.9

1,662.3
1,330.1
200.0
44.8
87.2
35.6

(22.8)(135.3)
34.7
62.2
15.4
36.3

General and Administrative Expenses(Excluding Non-recurring Expenses)

856.4

850.2

6.2

—

5.4

(5.4)

782.9

806.6

(23.6)

711.0

771.0

(59.9)

Domestic Gross Profits
International Gross Profits

Debenture Costs
Net Business Profits (before Provision of General Reserve
for Possible Losses on Loans)Excluding Net Gains related to Bonds
Provision of General Reserve for Possible Losses on Loans

1.6

25.0

(23.3)Net Business Profits

784.6

831.6

(47.0)Net Non-recurring Gains / Losses
Net Gains related to Stocks and Other Securities
Expenses related to Portfolio Problems
Others(469.3)321.5(695.5)(95.3)(259.2)691.7(867.1)(83.8)(210.0)(370.1)
171.6(11.5)

Income before Income Taxes

315.3

572.4

(257.1)

Income Tax Expenses—Current

23.0

77.5

(54.4)

Income Tax Expenses—Deferred

89.6

243.5

(153.9)¥ 202.6¥ 251.2¥ (48.6)

Net Income Gross Profits
Gross Profits decreased by ¥22.8 billion compared with the previous year to ¥1,639.4 billion, mainly because of a decrease of¥135.3 billion in Net Interest Income.
Breakdown of Gross Profits (Aggregated Figures of the Three Banks)(Billions of yen)

Fiscal year ended
March 31, 2000

Change¥1,194.8
1,064.5
130.2¥1,330.1
1,163.8
166.3¥(135.3)(99.2)(36.0)Net Fee and Commission Income
Domestic Operations
International Operations

234.7
156.7
78.0

200.0
139.8
60.1

34.7
16.8
17.8

Net Trading Income
Domestic Operations
International Operations

107.1
7.0
100.1

44.8
17.7
27.0

62.2
(10.7)
73.0

Net Other Operating Income
Domestic Operations
International Operations

102.6
20.6
81.9

87.2
23.2
63.9

15.4
(2.6)
18.0

¥1,639.4¥1,662.3¥ (22.8)

Net Interest Income
Domestic Operations
International Operations

Gross Profits

MIZUHO 83

CHAPTER 8

Fiscal year ended
March 31, 2001

Financial Analysis of MIZUHO(1) Net Interest Income
Because of a decrease in market-related profits, Net Interest Income fell by ¥135.3 billion from the previous year to ¥1,194.8
billion. Domestic operations decreased by ¥99.2 billion to ¥1,064.5 billion, and international operations decreased by ¥36.0 billion to ¥130.2 billion.
Breakdown of Investment Balance (Aggregated Figures of the Three Banks)(Billions of yen)

Average balance

Yield

Fiscal year ended
March 31, 2001

Fiscal year ended
March 31, 2000

ChangeFiscal year ended
March 31, 2001

Fiscal year ended
March 31, 2000

ChangeUse of Funds
Loans and Bills Discounted
Securities¥116,061.9
84,440.4
24,685.7¥111,973.6
84,101.6
21,303.9¥4,088.3
338.7
3,381.7

2.44%
2.49
1.78

3.36%
2.37
1.84

(0.92)%
0.12(0.06)

Source of Funds
Deposits and Debentures¥109,997.2
92,504.3¥108,300.9
92,947.7¥1,696.3(443.3)

1.49%
1.07

2.24%
0.92

(0.75)%
0.15

/

/

/

0.95

1.12

(0.17)

/

/

/

1.42

1.45

(0.03)

Use of Funds
Loans and Bills Discounted
Securities¥ 95,008.9
71,981.3
20,023.0¥ 94,437.9
71,433.6
17,640.2¥ 570.9547.6
2,382.7

1.67%
1.86
0.95

2.20%
1.94
1.24

(0.53)%(0.08)(0.29)

Source of Funds
Deposits and Debentures¥ 90,041.2
78,349.8¥ 90,985.7
80,643.7¥ (944.4)(2,293.9)

0.58%
0.44

1.00%
0.49

(0.42)%(0.05)

Interest Margins

/

/

/

1.09

1.20

(0.11)

Loan and Deposit Rate Margin(including Expenses)

/

/

/

1.42

1.45

(0.03)

Use of Funds
Loans and Bills Discounted
Securities¥ 22,781.2
12,459.1
4,662.6¥ 21,167.6
12,668.0
3,663.6¥1,613.6(208.8)
998.9

5.90%
6.10
5.32

8.04%
4.80
4.72

(2.14)%
1.30
0.60

Source of Funds
Deposits and Debentures¥ 21,684.2
14,154.5¥ 20,947.1
12,303.9¥ 737.0
1,850.5

5.60%
4.57

7.33%
3.70

(1.73)%
0.87

Interest Margins

/

/

/

0.30

0.71

(0.41)

Loan and Deposit Rate Margin(including Expenses)

/

/

/

1.53

1.10

0.43

 TotalInterest Margins
Loan and Deposit Rate Margin(including Expenses)
 Domestic Operations

 International Operations

Note: Deposits and Debentures include NCDs.

(2) Net Fee and Commissions Income
As a result of higher commissions on M&A, structured finance, syndicated loans and the sale of mutual funds, etc., Net Fee andCommissions Income increased by ¥34.7 billion from the previous year to ¥234.7 billion.

84 MIZUHOBreakdown of Net Fee and Commissions Income (Aggregated Figures of the Three Banks)(Billions of yen)

Fiscal year ended
March 31, 2001

Fiscal year ended
March 31, 2000

Change¥329.8
86.7
113.7
29.2
27.3
6.4
20.7

¥292.8
62.6
110.4
28.9
24.7
6.3
18.1

¥36.9
24.1
3.2
0.3
2.5
0.1
2.5

95.0
29.0

92.8
27.5

2.2
1.4

Fee and Commissions Income
Deposits, Debentures and Lending Business
Remittance Business
Securities-related BusinessAgency Business
Safe Custody and Safety Deposit Box Business
Guarantee BusinessFee and Commissions Expenses
Remittance Business(3) Net Trading Income
Net Trading Income increased by ¥62.2 billion from the previous year to ¥107.1 billion.
(4) Net Other Operating Income
Net Other Operating Income increased by ¥15.4 billion year-to-year to ¥102.6 billion, owing to Net Gains related to Bonds, etc.
Breakdown of Net Other Operating Income (Aggregated Figures of the Three Banks)(Billions of yen)

Fiscal year ended
March 31, 2001

Fiscal year ended
March 31, 2000

Change¥102.6
29.7
71.9

¥87.2
60.6
35.6

¥15.4
(30.8)
36.3

Domestic Operations
Net Gains related to Bonds

20.6
12.6

23.2
22.6

(2.6)
(9.9)

International Operations
Profits on Foreign Exchange Transactions
Net Gains related to Bonds

81.9
29.7
59.3

63.9
60.6
13.0

18.0
(30.8)
46.3

Total
Profits on Foreign Exchange Transactions
Net Gains related to Bonds

Breakdown of General and Administrative Expenses (Excluding Non-Recurring Expenses)(Aggregated Figures of the Three Banks)(Billions of yen)

Fiscal year ended
March 31, 2001

Fiscal year ended
March 31, 2000

ChangePersonnel Expenses
Salaries and Remuneration¥352.8278.2¥349.3293.6¥ 3.5(15.3)

Non-personnel Expenses

458.9

454.0

4.8

Miscellaneous Taxes

44.6

46.7

(2.1)

¥856.4¥850.2

¥ 6.2

Total

MIZUHO 85

CHAPTER 8

 Expenses
Despite ongoing efforts to rationalize general management and increase efficiency, General and Administrative Expenses
increased by ¥6.2 billion from the previous year to ¥856.4 billion as a result of higher Personnel Expenses following the adoption of the Accounting Standard for Employee Retirement Benefits.
Although personnel cutbacks helped to reduce Personnel Expenses, adopting the Accounting Standard for Employee
Retirement Benefits resulted in an increase of ¥3.5 billion, for a total of ¥352.8 billion.
Non-personnel Expenses increased by ¥4.8 billion from the previous year to ¥458.9 billion, largely because of the expense
related to the establishment of the holding company.

Financial Analysis of MIZUHO Net Business Profits
Net Business Profits (before Provision of General Reserve for Possible Losses on Loans) decreased by ¥23.6 billion from theprevious year to ¥782.9 billion.
By business segment, profit from ALM and trading was down by ¥78.0 billion, but other business segments registered an
overall increase of ¥54.4 billion.
Net Business Profits by Business Segment (before Provision of General Reserve for Possible Losses on Loans)(Aggregated Figures of the Three Banks)(Billions of yen)
Fiscal year ended
March 31, 2001

Fiscal year ended
March 31, 2000

ChangeRetail and Middle Market Business
Wholesale
Securities/Investment Banking/Trust/Asset Management,
e-Business/Global Transaction Services
ALM and Trading¥216.2428.4¥208.3
417.6

¥ 7.9
10.8

31.8
153.1

17.4
231.1

14.4
(78.0)

Total¥782.9¥806.6¥(23.6)

 Net Non-Recurring Gains / Losses and Net Income(1) Net Gains Related to Stocks and Other Securities
Efforts to sell off stocks in line with our policy of reducing our stock holding portfolio paid off in ¥321.5 billion in Net Gains
related to Stocks and Other Securities. We also retired shares worth ¥130.7 billion as part of our measures to strengthen our
financial position.
(2) Expenses Related to Portfolio Problems
Expenses related to Portfolio Problems decreased by ¥171.6 billion from the previous year but still amounted to ¥695.5 billion
in total. In light of the decline of the collateral value along with land prices and the deterioration of the financial condition ofcertain borrowers under the stagnant economy, the three banks took tough measures such as making write-offs and provisions,following self-assessments based on uniform standards.
By segment, Losses on Write-offs of Claims was ¥266.7 billion and Provision of Specific Reserve for Possible Losses on Loanswas ¥241.9 billion.
(3) Others
Others includes a loss of ¥89.0 billion arising from the adoption of the Accounting Standard for Employee Retirement Benefits,etc.
Breakdown of Net Non-Recurring Gains / Losses (Aggregated Figures of the Three Banks)(Billions of yen)

Fiscal year ended
March 31, 2001

Fiscal year ended
March 31, 2000

Change¥ 321.5
578.0(46.6)(130.7)(77.6)(1.4)¥ 691.7
1,015.1(76.1)(236.8)(10.4)—¥(370.1)(437.0)29.4
106.1(67.1)(1.4)

Expenses related to Portfolio Problems
Write-offs of Claims
Provision of Specific Reserve for Possible Losses on Loans
Losses on Sales of Loans to CCPC
Provision of Reserve for Possible Losses on Loans Sold
Losses on Support of Specific Borrowers
Provision of Reserve for Possible Losses on Support of Specific Borrowers
Provision of Reserve for Possible Losses on Loans to Restructuring Countries
Other Losses on Sales of Loans

695.5
266.7
241.9
34.0
52.0
23.2
59.7
(2.5)
20.4

867.1
272.3
373.4
40.7
100.0
80.3
(34.2)(2.4)
36.7(171.6)(5.6)(131.5)(6.7)(48.0)(57.0)
93.9
0(16.3)

Others(95.3)(83.8)(11.5)¥ (469.3)¥ (259.2)¥(210.0)

Net Gains related to Stocks and Other Securities
Gains on Sales of Stocks and Other Securities
Losses on Sales of Stocks and Other Securities
Losses on Devaluation of Stocks and Other Securities
Provision of Reserves for Possible Losses on Securities
Gains/Losses on Derivatives other than for Trading

Net Non-recurring Losses

86 MIZUHO

(4) Current Income Tax Expenses, Etc.
Current Income Tax Expenses amounted to ¥23.0 billion, and Deferred Income Tax Expenses to ¥89.6 billion. The introductionof business taxes by the Osaka Prefectural Government had an impact of ¥19.4 billion.
(5) Net Income
Net Income thus decreased by ¥48.6 billion from the previous year to ¥202.6 billion.
3. Assets and Liabilities
Assets and Liabilities (Aggregated Figures of the Three Banks)(Billions of yen)

Fiscal year ended
March 31, 2001

Fiscal year ended
March 31, 2000

ChangeTotal Assets
Loans and Bills Discounted
Securities
Trading Assets
Customers’ Liabilities for Acceptances and Guarantees
Other Assets¥148,971.4
85,697.7
27,310.7
8,314.7
7,941.4
11,239.9¥134,364.0
85,952.7
21,185.6
5,748.7
6,971.8
6,045.8¥14,607.3(255.0)6,125.0
2,565.9969.6
5,194.0

Total Liabilities
Deposits
Debentures
Other Liabilities

142,356.8
75,923.6
18,395.8
16,420.2

127,817.5
73,371.6
19,933.8
9,274.3

14,539.3
2,552.0(1,538.0)
7,145.8

7,941.4

6,971.8

969.6

Acceptances and Guarantees
Shareholders’ Equity¥

6,614.5¥

6,546.5¥

68.0(1) Assets
Total Assets increased by ¥14,607.3 billion compared with the previous year to ¥148,971.4 billion.
Securities increased by ¥6,125.0 billion compared with the previous year to ¥27,310.7 billion. This resulted from the fact thatwhile efforts to reduce the stock portfolio continued, outstanding JGBs increased. With regard to Other Unrealized Gains/Losses
on Securities at year-end, the downward trend of the stock market resulted in unrealized losses of ¥253.9 billion.
Loans to small and medium-sized enterprises and residential housing loans increased, but overall Loans and Bills Discounted
fell by ¥255.0 billion from the previous year-end to ¥85,697.7 billion as efforts to dispose of non-performing loans continued.
Non-Accrual, Past Due & Restructured Loans amounted to ¥4,094.1 billion, or 4.78% of total Loans and Bills Discounted.

(3) Shareholders’ Equity
Shareholders’ Equity increased by ¥68.0 billion from the previous year-end to ¥6,614.5 billion as Retained Earnings increased.

MIZUHO 87

CHAPTER 8(2) Liabilities
Total Liabilities increased by ¥14,539.3 billion compared with the previous year to ¥142,356.8 billion.
Because of a rise in time deposits, Deposits increased by ¥2,552.0 billion compared with the previous year-end to¥75,923.6 billion.
Debentures decreased by ¥1,538.0 billion compared with the previous year-end to ¥18,395.8 billion. The balance consistedof ¥13,006.5 billion in interest-bearing bonds and ¥5,389.2 billion in discounted bonds.

Financial Analysis of MIZUHO DISCLOSURE OF ASSET QUALITY
Aggregated figures of the three banks are made up of simple totals of the non-consolidated results of DKB, Fuji Bank and IBJ.
 Self-Assessments, Write-Offs and Provisions“Self-assessments” are carried out by the three banks on their own responsibility to enable them to prepare financial statementsthat reflect the actual quality of their assets by ascertaining the status of these assets in preparation for making appropriate
write-offs and provisions based on corporate accounting principles.
The first step in making self-assessments is to categorize borrowers into the following five obligor classifications according totheir financial and management positions.
 Bankrupt Obligors

Obligors who have already gone bankrupt, from both legal and/or formal perspectives.

 Substantially Bankrupt Obligors

Obligors who have not yet gone legally or formally bankrupt but who are substantiallybankrupt because they are in serious management difficulties and are not deemed to becapable of restructuring.

 Intensive Control Obligors

Obligors who are not yet bankrupt but are in management difficulties and are deemed
to be very likely to go bankrupt in the future because they are finding it hard to makeprogress in implementing their management improvement plans (including obligors who
are receiving ongoing support from financial institutions).

 Watch Obligors

Obligors who require close watching going forward because there are problems with
their borrowings, such as reduced or suspended interest payments, problems with fulfillment such as de facto postponements of principal or interest payments, or problems
with their financial positions as a result of poor or unstable business conditions.

 Normal Obligors

Obligors whose business conditions are favorable and who are deemed not to have any
particular problems in terms of financial position.

Next, assets are evaluated according to the likelihood that they will be collectible, based on collateral and guarantees foreach obligor classification, and classified into Category I (Non-categorization), Category II, Category III and Category IV according to asset recovery risk in ascending order.
Write-offs and provisions are made according to obligor classifications and asset classifications on the basis of self-assessment
results. The results as of March 31, 2001 are given on the following page.
 Non-Accrual, Past Due & Restructured Loans
Non-Accrual, Past Due & Restructured Loans are disclosed under the provisions of the Banking Law of Japan and refer collectively to Loans to Bankrupt Obligors, Non-Accrual Delinquent Loans, Loans Past Due for 3 Months or More and Restructured
Loans.
They are based on the obligor classifications used for self-assessments: loans to Bankrupt Obligors are disclosed as Loans
to Bankrupt Obligors, loans to Substantially Bankrupt Obligors and Intensive Control Obligors are disclosed as Non-Accrual
Delinquent Loans, and loans to Watch Obligors that meet certain conditions are disclosed as Loans Past Due for 3 Months
or More or Restructured Loans.
On a consolidated basis, Non-Accrual, Past Due & Restructured Loans amounted to ¥4,556.2 billion as of March 31, 2001.
On the basis of aggregated figures of the three banks, they amounted to ¥4,094.1 billion, decreasing by ¥571.1 billion compared with the previous year.

88 MIZUHO Disclosed Claims under the Financial Reconstruction Law
Based on the provisions of the Financial Reconstruction Law (“FRL”), Disclosed Claims under the FRL are classified as Claims
against Bankrupt and Substantially Bankrupt Obligors, Claims with Collection Risk and Claims for Special Attention.
They are based on the obligor classifications used for self-assessments: claims on Bankrupt and Substantial Bankrupt Obligors
are disclosed as Claims against Bankrupt and Substantially Bankrupt Obligors, claims on Intensive Control Obligors as Claims
with Collection Risk, and among those claims on Watch Obligors, figures equivalent to Loans Past Due for 3 Months or Moreand Restructured Loans under Non-accrual, Past Due & Restructured Loans are disclosed as Claims for Special Attention.
On the basis of aggregated figures of the three banks, the balance of Disclosed Claims under the FRL as of March 31, 2001
decreased by ¥543.4 billion to ¥4,195.6 billion. Of this total, Claims against Bankrupt and Substantially Bankrupt Obligors was¥805.9 billion, Claims with Collection Risk was ¥1,613.0 billion and Claims for Special Attention was ¥1,776.7 billion.
The difference of ¥101.5 billion between total Non-Accrual, Past Due & Restructuring Loans and total Disclosed Claims under
the FRL represents claims other than loans included in Disclosed Claims under the FRL.
We believe MHHD has ample real coverage against the above claims in the form of reserves, collateral and guarantees.
Coverage ratios at the end of March 2001 stood at 100% for Claims against Bankrupt and Substantially Bankrupt Obligors,
85.4% for Claims with Collection Risk, 50.3% for Claims for Special Attention and 73.3% overall.

 Overview of Disclosure on Problem Loans (Aggregated Figures of the 3 Banks)(Billions of yen)

1. Self-Assessment
Categorization
Obligor

1) Bankrupt and Substantially
Bankrupt Obligors
805.92) Intensive Control
Obligors
1,613.0

Category I(Non-Categorization)

Category II

805.9
Covered by Reserves,
Good Quality Collateralor Guarantees

Category III

Reserve
Ratio
100%

1,377.9

Covered by Reserves,
Good Quality Collateralor Guarantees

Category IV(Non-Collateralized)

DirectWrite-offs

235.0
Reserve
Ratio
72.7%

2. Disclosed Claims
under the FRL

3. Non-Accrual, Past
Due & Restructured
Loans

Claims against Bankrupt
and Substantially Bankrupt
Obligors 805.9
Coverage Ratio 100%Loans to Bankrupt Obligors
427.6

Claims with Collection Risk
1,613.0

Non-Accrual
Delinquent Loans
1,889.7

Coverage Ratio 85.4%

3) Watch Obligors

Claims for Special
Attention
1,776.7(Special Attention Obligors)
Other Watch Obligors
4) Normal Obligors

5) Total
97,904.7

Reserve Ratio for
Uncovered Portion
27.9%



Claims for Special
Attention (Note 1)
1,776.7
Coverage Ratio 50.3%

Reserved based on
estimated credit losses

Restructured Loans
1,639.4

Aggregate Coverage
Ratio 73.3%

Total
4,195.6

Total
4,094.1

Notes: 1. Claims for Special Attention includes loans only and is equal to the total amount of Loans Past Due for 3 Months or More and Restructured Loans.
The figure under Special Attention Obligors represents the total amount of claims against the obligors of claims for Special Attention.
2. The difference between total Non-Accrual, Past Due & Restructuring Loans and total Disclosed Claims under the FRL represents claims included
in Disclosed Claims under the FRL other than loans.

MIZUHO 89

CHAPTER 8

101.5 (Note 2)Loans Past Due for 3 Months
or More 137.2

Financial Analysis of MIZUHO Status of Non-Accrual, Past Due & Restructured Loans (Consolidated)
Non-Accrual, Past Due & Restructured Loans (After Direct Charge-offs of Category IV Loans)(Billions of yen)

Fiscal year ended March 31, 2001

Loans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for 3 Months or More
Restructured Loans¥ 470.0
2,169.6
124.8
1,791.7

Total¥4,556.2

Note:(Billions of yen)

Fiscal year ended March 31, 2001
Amount of Direct Charge-offs¥2,735.6

Ratio to Total Loans (Balance as of March 31, 2001) (After Direct Charge-offs of Category IV Loans)Fiscal year ended March 31, 2001

Loans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for 3 Months or More
Restructured Loans

0.51%
2.35
0.14
1.94

Non-Accrual, Past Due & Restructured Loans / Total Loans (at March 31, 2001)

4.94%

Status of Loan Loss Reserves(Billions of yen)

Fiscal year ended March 31, 2001

Reserve for Possible Losses on Loans(After Direct Charge-offs of Category IV Loans)
General Reserve for Possible Losses on Loans
Specific Reserve for Possible Losses on Loans
Reserve for Possible Losses on Loans to Restructuring Countries¥1,627.6
780.7
817.9
28.9

Reserve for Possible Losses on Support of Specific Borrowers

159.6

Reserve for Possible Losses on Loans Sold

199.0

Note:

(Billions of yen)

Fiscal year ended March 31, 2001
Amount of Direct Charge-offs (Specific Reserve for Possible Losses on Loans)¥2,838.0

Reserve Ratios for Non-Accrual, Past Due & Restructured Loans
Fiscal year ended March 31, 2001

Before Direct Charge-offs of Category IV Loans
After Direct Charge-offs of Category IV Loans
Note: Reserve ratio: (Reserve for Possible Losses on Loans + Reserve for Possible Losses on Support of Specific Borrowers) / Total Non-Accrual, Past Due & Restructured Loans.

90 MIZUHO

63.43%
39.23

 Status of Non-Accrual, Past Due & Restructured Loans (Aggregated Figures of the Three Banks)
Non-Accrual, Past Due & Restructured Loans (After Direct Charge-offs of Category IV Loans)(Billions of yen)

Fiscal year ended March 31, 2001

Fiscal year ended March 31, 2000

Loans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for 3 Months or More
Restructured Loans¥ 427.6
1,889.7
137.2
1,639.4¥ 330.5
2,631.2
199.6
1,503.8

Total¥4,094.1¥4,665.2

Note:(Billions of yen)Amount of Direct Charge-offs(Specific Reserve for Possible Losses on Loans)Fiscal year ended March 31, 2001

Fiscal year ended March 31, 2000

¥2,125.3¥1,918.9

Ratio to Total Loans (Balance at March 31, 2001) (After Direct Charge-offs of Category IV Loans)Fiscal year ended March 31, 2001

Fiscal year ended March 31, 2000

Loans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for 3 Months or More
Restructured Loans

0.50%
2.21
0.16
1.91

0.39%
3.07
0.23
1.76

Non-Accrual, Past Due & Restructured Loans / Total Loans(at March 31, 2001)

4.78%

5.45%

Status of Loan Loss Reserves(Billions of yen)

Fiscal year ended March 31, 2001

Fiscal year ended March 31, 2000

Reserve for Possible Losses on Loans(After Direct Charge-offs of Category IV Loans)
General Reserve for Possible Losses on Loans
Specific Reserve for Possible Losses on Loans
Reserve for Possible Losses on Loans to Restructuring Countries¥1,339.7
553.8
760.0
25.8

¥1,797.2
546.4
1,223.2
27.4

Reserve for Possible Losses on Support of Specific Borrowers

176.7

224.7

195.3

300.6

Loans to CCPC

311.8

528.1

Fiscal year ended March 31, 2001

Fiscal year ended March 31, 2000

¥2,202.9¥1,986.1

Fiscal year ended March 31, 2001

Fiscal year ended March 31, 2000

59.80%
37.04%

60.87%
43.34%

Notes: 1.

(Billions of yen)Amount of Direct Charge-offs(Specific Reserve for Possible Losses on Loans)
2. CCPC: Cooperative Credit Purchasing Company, Ltd.

Reserve Ratios for Non-Accrual, Past Due & Restructured Loans

Before Direct Charge-offs of Category IV Loans
After Direct Charge-offs of Category IV Loans

Note: Reserve ratio: (Reserve for Possible Losses on Loans + Reserve for Possible Losses on Support of Specific Borrowers) / Total Non-Accrual, Past Due & Restructured Loans.

MIZUHO 91

CHAPTER 8

Reserve for Possible Losses on Loans Sold

Financial Analysis of MIZUHO Status of Disclosed Claims under the FRL (Aggregated Figures of the Three Banks)
Disclosed Claims under the FRL (After Direct Charge-offs of Category IV Loans)(Billions of yen)

Fiscal year ended March 31, 2001

Claims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk
Claims for Special Attention

¥

805.9
1,613.0
1,776.7

Fiscal year ended March 31, 2000

¥

754.2
2,281.4
1,703.4

Subtotal

4,195.6

4,739.1

Normal Claims

93,709.1

90,488.7

Total¥97,904.8

Note:¥95,227.9(Billions of yen)Amount of Direct Charge-offs(Specific Reserve for Possible Losses on Loans)Fiscal year ended March 31, 2001

Fiscal year ended March 31, 2000

¥2,202.9¥1,986.1

Status of Coverage on Disclosed Claims under the FRL(Billions of yen)

Fiscal year ended March 31, 2001

Fiscal year ended March 31, 2000

Coverage AmountReserve for Possible Losses on Loans
Reserve for Possible Losses on Support of Specific Borrowers
Collateral and Guarantees¥3,077.1
879.5
176.4
2,021.1¥3,752.0
1,305.3
224.7
2,222.0

Coverage Ratio (after Direct Charge-offs of Category IV Loans)
Claims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk
Claims for Special Attention
Coverage Ratio (before Direct Charge-offs of Category IV Loans)

73.3%
100.0
85.4
50.3
82.5

79.2%
100.0
88.1
57.9
85.3

Reserve Ratio against Non-collateralized Claims
Claims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk
Claims for Special Attention

100.0%
72.7
27.9

100.0%
79.5
32.3

Reserve Ratio against Other Claims (%)
Claims against Watch Obligors excluding Claims for Special Attention
Normal Claims

3.94%
0.10

3.74%
0.13

92 MIZUHO Status of Loans by Industry
Outstanding Loans by Industry (Aggregated Figures of the Three Banks)(Billions of yen)March 31, 2001

March 31, 2000

ChangeDomestic Offices (excluding loans booked at offshore markets)
Manufacturing
Agriculture
Forestry
Fishery
MiningConstruction
Utilities
Transportation & Communication
Wholesale, Retail & Restaurant
Finance & Insurance
Real Estate
Services
Local Government
Others¥75,203.8
11,491.7
106.7
3.9
59.9
82.8
2,912.4
1,729.9
4,461.4
11,057.5
9,469.3
8,122.3
11,752.9
257.0
13,695.5¥76,365.5
11,841.2
109.4
3.9
58.1
102.5
3,013.5
2,028.3
3,854.0
11,355.3
10,095.5
8,237.0
12,065.3
349.7
13,251.0¥(1,161.6)(349.4)
(2.6)
(0.0)
1.7
(19.6)(101.1)(298.4)607.3(297.7)(626.2)(114.6)(312.3)(92.7)
444.5

Overseas Offices and loans booked at offshore markets
Governments
Financial Institutions
Others

10,493.8
436.9
549.9
9,506.8

9,231.9
535.5
867.0
7,829.4

1,261.8(98.5)(317.0)1,677.4¥85,697.7¥85,597.4

Total

Non-Accrual, Past Due & Restructured Loans and Disclosed Claims under the FRL by Industry(Aggregated Figures of the Three Banks)
March 31, 2001

Overseas Offices and loans booked at offshore markets
Governments
Financial Institutions
Others
Total

100.2

(Billions of yen)March 31, 2000

Non-Accrual,
Past Due &Restructured
Loans

Disclosed
Claimsunder the FRL

Non-Accrual,
Past Due &Restructured
Loans

Disclosed
Claimsunder the FRL¥3,745.4
206.8
21.3
0.1
0.4
1.8
492.6
2.1
47.5
556.6
303.4
1,031.8
781.2
—
299.1

¥3,794.4
208.3
21.3
0.1
0.4
1.9
493.1
2.1
47.6
569.5
315.9
1,033.7
797.6
—
302.4

¥4,405.8
183.2
21.5
—
0.1
3.0
554.2
4.1
57.8
720.3
439.0
1,050.1
1,091.3—
280.4¥4,462.8
186.5
21.6
—
0.1
7.8
561.2
4.1
57.9
734.7
439.8
1,052.7
1,112.2
—
283.6

348.6
17.4
9.0
322.2

401.1
21.5
9.0
370.6

259.4
19.4
9.6
230.3

276.3
19.4
9.6
247.2

¥4,094.1¥4,195.6¥4,665.2¥4,739.1

MIZUHO 93

CHAPTER 8

Domestic Offices (excluding loans booked at offshore markets)
Manufacturing
Agriculture
Forestry
Fishery
MiningConstruction
Utilities
Transportation & Communication
Wholesale, Retail & Restaurant
Finance & Insurance
Real Estate
Services
Local Government
Others¥Financial Analysis of MIZUHO Results of Off-Balancing Problem Loans (Aggregated Figures of the Three Banks)
 Problem Loans in the First Half of Fiscal 2000 and Before (Accumulated Problem Loans)
The Outstanding Balance of Claims against Bankrupt and Substantially Bankrupt Obligors
and Claims with Collection Risk (under the FRL)

(Billions of yen)

End of first halfof fiscal 2000

End of second halfof fiscal 2000

ChangeClaims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk

¥1,040.0
1,425.5¥ 663.8
1,080.9¥(376.0)(344.5)

Total¥2,465.6¥1,744.8¥(720.7)(A)(B)

Types of Off-Balancing Problem Loans(Billions of yen)

Second half of fiscal 2000

Liquidation
Reconstruction
Securitization
Direct Charge-offs
Others¥(218.3)(45.8)(169.1)41.1(328.2)

Total¥(720.7)(B)

Note: “Others” includes collection and improvements in obligors’ situation.

 Problem Loans in the Second Half of Fiscal 2000 (Problem Loans generated additionally)(Billions of yen)

Second half of fiscal 2000

Claims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk

¥141.9
531.9

Total

¥673.9(C)

Note: The above is the amount of newly generated Claims against Bankrupt and Substantially Bankrupt Obligors and Claims with Collection Risk generated additionallyin the second half of fiscal 2000.

The Outstanding Balance of Claims against Bankrupt and Substantially Bankrupt Obligors
and Claims with Collection Risk in the Second Half of Fiscal 2000
(Billions of yen)
Second half of fiscal 2000

Claims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk

¥ 805.9
1,613.0

Total¥2,418.9

94 MIZUHO(A)+(C) IMPLEMENTATION OF THE REVITALIZATION PLAN (FISCAL 2000)
Aggregated figures of the three banks are made up of simple totals of the non-consolidated results of DKB, Fuji Bank and IBJ.
 Income Trends
Aggregated Net Business Profits for the three banks (before Provision of General Reserve for Possible Losses on Loans) stoodat ¥782.9 billion. In the market trading operations, this was ¥46.3 billion below the planned targets, largely because of adecline in market-related profits, but, excluding market-related profits, Net Business Profits was ¥48.5 billion above the plannedtargets. Net Income amounted to ¥202.6 billion, ¥38.3 billion less than the plan. MHHD’s Consolidated BIS Capital Adequacy
Ratio was 11.39%, which is above the planned level.
(Billions of yen)

Net Business Profits (before Provision of General Reserve for
Possible Losses on Loans) (Aggregated Figures of the Three Banks)
Ordinary Profits (Aggregated Figures of the Three Banks)
Net Income (Aggregated Figures of the Three Banks)
Net Income (Five Core Subsidiaries) (Note 1)
Consolidated Risk-based Capital Ratio (BIS Capital Adequacy Ratio)

Fiscal 2000

Fiscal 2000 (Plan)¥782.9
388.1
202.6
190.7
11.39%¥829.2
409.3
240.9
247.4
11.15%

Fiscal 1999

¥806.6
581.1
251.2
245.9
11.68% (Note 2)

Notes: 1. “Five Core Subsidiaries” refers to DKB, Fuji Bank, IBJ, Mizuho Securities and Mizuho Trust & Banking.
2. Results for fiscal 2000 are computed by aggregating the figures of the BIS Capital Adequacy Ratio for the three banks.
3. A “fiscal year” is the period from April to March each year.

 Progress in Restructuring Measures
As a result of the steady implementation of various restructuring measures, expenses amounted to ¥856.4 billion. This reduction was greater than initially planned.
The following tables also show the results achieved in meeting the planned targets for domestic offices, overseas offices andnumber of directors and employees.
Expenses (Aggregated Figures of the Three Banks)

Expenses
Personnel Expenses
Non-personnel Expenses(Billions of yen)

Fiscal 2000

Fiscal 2000 (Plan)

Fiscal 1999

¥856.4352.8
458.9¥912.2350.8 (Note)
507.8¥850.2349.3
454.0

Note: ¥371.5 billion, if the figure at the time the plan was drawn up is revised to reflect the impact of the change in the Accounting Standard for Employee Retirement Benefits.

CHAPTER 8

MIZUHO 95

Financial Analysis of MIZUHO

Number of Domestic and Overseas Offices (Aggregated Figures of the Three Banks)
Fiscal 2000

Fiscal 2000 (Plan)

Fiscal 1999

588
45
37

588
45
44

608
49
48

Number of Domestic Branches
Number of Overseas Branches (Note 2)(Reference) Number of Overseas Subsidiaries (Note 3)(Note 1)

Notes: 1. Excluding sub-branches, agencies, in-store branches, branches for remittance-receiving purposes only, specialist joint-use ATM management branches and the exclusive Internet
branch.
2. Excluding marketing offices and representative offices.
3. Consolidated subsidiaries in which MHHD has a direct equity position of over 50%, excluding special-purpose companies (SPCs).

Number of Directors and Employees (Aggregated Figures of MHHD and the Three Banks)

Members of the Board of Directors and Auditors
Employees (Note 2)(Note 1)

Fiscal 2000

Fiscal 2000 (Plan)

Fiscal 1999

51
32,06859
32,44990
33,631

Notes: 1. Includes directors of MHHD.
2. Aggregate for clerical employees and general employees. Includes full-time employees seconded to other companies; excludes part-time employees, part-timers and temporary staff.

 Progress in Domestic Lending
Lending to Small/Medium-Sized Companies increased by ¥381.2 billion, ¥131.2 billion more than the target contained in theplan. Although demand for funds remained weak, efforts to broaden the range of loan products available and strengthen
acceptance procedures in response to the healthy funding needs of customers brought rewards.
(Billions of yen)

Fiscal 2000

Domestic Lending (Aggregated Figures of the Three Banks)
Lending to Small/Medium-Sized Companies
Housing Loans
Note: Domestic Lending and Lending to Small/Medium-Sized Companies (excluding impact loans).

96 MIZUHOFiscal 2000

Fiscal 1999

Balance

ChangePlanned Change

Balance¥75,719.9
33,695.4
11,255.2¥(226.5)
381.2
313.7

¥665.0250.0—¥75,946.4
33,314.2
10,941.5

Financial Data of MIZUHO
Mizuho Holdings’ Financial Data

Chapter 9
Contents
98

Consolidated Balance Sheet

99

Consolidated Statement of Income

100

Consolidated Statement of Shareholders’ Equity

101

Consolidated Statement of Cash Flows102

Notes to the Consolidated Financial Statements

104

MIZUHO 97

CHAPTER 9

Report of Independent Certified Public Accountants

Report of Independent Certified Public Accountants

The Board of Directors
Mizuho Holdings, Inc.

We have audited the accompanying consolidated balance sheet of Mizuho Holdings, Inc. (“MHHD”) and its consolidated subsidiaries as of March 31, 2001, and the related consolidated statements of income, shareholders’ equity and cash flows for theyear then ended, all expressed in Japanese yen. Our audit was made in accordance with auditing standards, procedures andpractices generally accepted and applied in Japan and, accordingly, included such tests of the accounting records and suchother auditing procedures as we considered necessary in the circumstances.

In our opinion, the consolidated financial statements referred to above present fairly the consolidated financial position of
MHHD and its consolidated subsidiaries as of March 31, 2001, and the consolidated results of their operations and their cash
flows for the year then ended in conformity with accounting principles and practices generally accepted in Japan.

The amounts expressed in U.S. dollars in the accompanying consolidated financial statements are provided solely for the convenience of the reader. We have also reviewed the translation of Japanese yen into U.S. dollar amounts and, in our opinion, suchtranslation has been made on the basis set forth in Note 1 to the consolidated financial statements.

ChuoAoyama Audit Corporation

Century Ota Showa & Co.

Tokyo, Japan
June 26, 2001

See Note 1 to the consolidated financial statements which explains the basis of presentation of the consolidated financial statements of MHHD and its consolidated
subsidiaries under Japanese accounting principles and practices.

98 MIZUHOConsolidated Balance Sheet
Mizuho Holdings, Inc.
March 31, 2001

Thousands of
U.S. dollars (Note 1)

March 31, 2001

March 31, 2001¥

5,011,232
2,343,046
703,619
10,877,475
392,367
28,062,563
92,286,772
845,277
14,940,725
1,713,356
9,531
1,663,971
107,764
6,129,641(1,627,632)(4,233)¥163,455,480$

40,445,783
18,910,784
5,678,928
87,792,378
3,166,812
226,493,654
744,848,850
6,822,257
120,586,966
13,828,544
76,926
13,429,952
869,772
49,472,490(13,136,660)(34,165)$1,319,253,271¥ 80,176,482
17,848,257
13,208,076
2,369,254
4,687,700
3,871,945
273,849
3,998,017
8,088
1,826,412
21,186,842
126,050
199,093
159,628
24,74011,462
343,728
6,129,641
156,449,275
751,933$ 647,106,400
144,053,734
106,602,715
19,122,315
37,834,551
31,250,566
2,210,248
32,268,102
65,28014,741,024
170,999,538
1,017,360
1,606,885
1,288,365
199,685
92,5182,774,243
49,472,490
1,262,706,019
6,068,876

2,572,000
2,203,747
548,533
1,107,231(175,430)
6,256,083(1,812)
6,254,270¥163,455,480

20,758,676
17,786,505
4,427,226
8,936,497(1,415,901)
50,493,003(14,627)
50,478,376$1,319,253,271

See accompanying “Notes to Consolidated Financial Statements” which are an integral part of these statements.

MIZUHO 99

CHAPTER 9

ASSETSCash and Due from Banks
Call Loans and Bills Purchased
Other Debt Purchased
Trading Assets (Note 4)
Money Held in Trust
Securities (Note 5)Loans and Bills Discounted (Note 6)
Foreign Exchange Assets (Note 7)
Other Assets (Note 8)
Premises and Equipment (Note 9)
Deferred Debenture Charges (Note 10)
Deferred Tax Assets (Note 34)
Consolidation Differences
Customers’ Liabilities for Acceptances and Guarantees (Note 23)
Reserve for Possible Losses on Loans (Note 11)
Reserve for Possible Losses on Securities
Total Assets
LIABILITIES, MINORITY INTERESTS AND SHAREHOLDERS’ EQUITY
Liabilities
Deposits (Note 13)
Debentures (Note 14)
Call Money and Bills Sold (Note 15)
Commercial Paper (Note 16)
Trading Liabilities (Note 4)
Borrowed Money (Note 17)
Foreign Exchange Liabilities (Note 7)
Bonds and Notes (Note 18)
Convertible Bonds (Note 19)
Due to Trust Account
Other Liabilities (Note 20)
Reserve for Employee Retirement Benefits (Note 21)
Reserve for Possible Losses on Loans Sold
Reserve for Possible Losses on Support of Specific Borrowers
Other Reserves (Note 22)
Deferred Tax Liabilities (Note 34)
Deferred Tax Liabilities for Revaluation Reserve for Land (Note 24)
Acceptances and Guarantees (Note 23)
Total Liabilities
Minority Interests
Shareholders’ Equity
Common Stock and Preferred Stock (Note 25)
Capital Surplus
Revaluation Reserve for Land, net of Taxes (Note 24)
Retained Earnings
Foreign Currency Translation Adjustments
Subtotal
Treasury Stock
Total Shareholders’ Equity
Total Liabilities, Minority Interests and Shareholders’ Equity

Millions of yen

Consolidated Statement of Income
Mizuho Holdings, Inc.
For the fiscal year ended March 31, 2001

IncomeInterest Income (Note 26)
Fiduciary Income
Fee and Commissions Income
Trading Income (Note 27)
Other Operating Income (Note 28)
Other Income (Note 29)
Total Income
Expenses
Interest Expenses (Note 26)
Fee and Commissions Expenses
Other Operating Expenses (Note 30)
General and Administrative Expenses
Other Expenses (Note 31)
Total Expenses
Income before Income Taxes and Minority Interests
Income Tax Expenses:
Current
Deferred
Minority Interests in Net Income
Net Income

Per Share of Common StockNet Income:
Basic
DilutedCash Dividends

Millions of yen

Thousands of
U.S. dollars (Note 1)

Fiscal 2000

Fiscal 2000

¥3,512,272
65,111
513,194
156,508
577,125
1,089,530$28,347,641
525,513
4,142,004
1,263,186
4,657,992
8,793,627

5,913,742

47,729,963

2,158,303
85,262
431,320
1,228,618
1,530,161

17,419,719
688,153
3,481,198
9,916,210
12,349,968

5,433,665

43,855,248

480,077

3,874,715

51,621
146,376
70,819416,635
1,181,406
571,587¥ 211,260$ 1,705,087

Yen

U.S. dollars¥20,524.13
20,109.99
7,000*$165.65
162.3156.50*Stock transfer payments of ¥3,500 per common stock instead of interim cash dividends paid to shareholders of DKB, Fuji Bank and IBJ as of September 27, 2000,
are included.
See accompanying “Notes to Consolidated Financial Statements” which are an integral part of these statements.

100 MIZUHOConsolidated Statement of Shareholders’ Equity
Mizuho Holdings, Inc.
For the fiscal year ended March 31, 2001

Millions of yen

Retained
Earnings

Foreign
Currency
Translation
Adjustments¥565,652 ¥ 917,065——¥(194,129)—

Common Stockand Preferred
Stock

Revaluation
Reservefor Land

CapitalSurplus

Balance at April 1, 2000
Stock Transfer Payments
Effect of the Change in Scopeof Consolidated Subsidiaries
Transfer from Revaluation
Reserve for Land
Transfer from Deferred Tax
Liabilities Related to Land
Effect on the Change in Scopeof Consolidated Subsidiaries
Exclusion from Consolidationof Affiliates
Change during the Year
Cash Dividends
Bonuses to Directors
and Statutory Auditors
Net Income
Treasury Stock Transactions¥2,572,000—¥2,247,155(43,407)

—

—

—

730

—

—

730

—

—

(21,748)

21,748

—

—

—

—

—

4,629

—

—

—

4,629

—

—

—

(147)

—

—

(147)

—
—
—

—
—
—

—
—
—

(17)
—
(43,407)—
18,699
—

—
—
—

(17)
18,699(43,407)

—
—
—

—
—
—

—
—
—

(0)
211,260
—

—
—
—

—
—
5,785

(0)
211,260
5,785

Balance at March 31, 2001

¥2,572,000¥2,203,747¥548,533 ¥1,107,231¥(175,430)

Treasury
Stock

Total
Shareholders’Equity¥(7,597) ¥6,100,145—(43,407)¥(1,812) ¥6,254,270

Thousands of U.S. dollars (Note 1)

Common Stockand Preferred
Stock

CapitalSurplus

Revaluation
Reservefor LandRetained
Earnings

Foreign
Currency
Translation
Adjustments

Treasury
Stock

Total
Shareholders’EquityBalance at March 31, 2001

$20,758,676 $17,786,505 $4,427,226 $8,936,497 $(1,415,901) $(14,627) $50,478,376

See accompanying “Notes to Consolidated Financial Statements” which are an integral part of these statements.

MIZUHO 101

CHAPTER 9

Balance at April 1, 2000
$20,758,676 $18,136,847 $4,565,392 $7,401,659 $(1,566,827) $(61,319) $49,234,428
Stock Transfer Payments—(350,342)————(350,342)
Effect of the Change in Scopeof Consolidated Subsidiaries
—
—
—
5,894
—
—
5,894
Transfer from Revaluation
Reserve for Land——(175,531)
175,531———Transfer from Deferred Tax
Liabilities related to Land——37,365———37,365
Effect on the Change in Scopeof Consolidated Subsidiaries———(1,188)——(1,188)
Exclusion from Consolidationof Affiliates
—
—
—
(137)
—
—
(137)
Change during the Year————
150,926—
150,926
Cash Dividends———(350,341)——(350,341)
Bonuses to Directors
and Statutory Auditors
—
—
—
(7)
—
—
(7)
Net Income——— 1,705,086——
1,705,086
Treasury Stock Transactions
—
—
—
—
—
46,692
46,692

Consolidated Statement of Cash Flows
Mizuho Holdings, Inc.
For the fiscal year ended March 31, 2001

I. Cash Flows from Operating Activities
Income before Income Taxes and Minority Interests
Depreciation
Amortization of Consolidation Differences
Equity in Earnings from Investments in Affiliates
Decrease in Reserve for Possible Losses on Loans
Decrease in Reserve for Possible Losses on Securities
Decrease in Reserve for Possible Losses on Loans Sold
Decrease in Reserve for Possible Losses on Support of Specific Borrowers
Increase in Reserve for Contingencies
Decrease in Reserve for Retirement Allowance
Increase in Reserve for Employee Retirement Benefits
Interest Income—accrual basis
Interest Expenses—accrual basis
Gains on Securities
Losses from Money Held in Trust
Translation Differences
Losses on Disposal of Premises and Equipment
Gains on Establishment of Retirement Benefit Trusts
Net Increase in Trading Assets
Net Decrease in Trading Liabilities
Net Decrease in Loans and Bills Discounted
Net Increase in Deposits
Net Decrease in Debentures (excluding Subordinated Debentures)
Net Decrease in Borrowed Money (excluding Subordinated Borrowed Money)
Net Decrease in Due from Banks (excluding Deposits with Central Banks)
Net Increase in Negotiable Certificates of Deposit
Net Decrease in Call Loans
Net Decrease in Cash Placed as Collateral on Securities Borrowed
Net Increase in Call Money
Net Increase in Commercial Paper
Net Increase in Cash Received as Collateral for Securities Lent
Net Decrease in Foreign Exchange Assets
Net Decrease in Foreign Exchange Liabilities
Net Decrease in Issuance, Redemption of Bonds and Notes
Net Increase in Due to Trust AccountInterest Income—cash basis
Interest Expenses—cash basis
Others—net
Subtotal
Cash Paid in Income Taxes
Net Cash Provided by Operating Activities

102 MIZUHOMillions of yen

Thousands of
U.S. dollars (Note 1)

Fiscal 2000

Fiscal 2000

¥ 480,077
75,28323,002(18,036)(421,915)(7,631)(110,663)(64,023)
10,094(145,991)
125,957(3,512,272)
2,158,303(700,515)
9,000(578,274)
38,337(11,789)(582,053)(79,145)442,2312,203,779(1,531,894)(182,296)
253,674(46,169)
716,387
192,795
2,053,226
981,573
907,528
54,677(77,391)(104,109)
246,308
3,526,703(2,210,161)(1,154,274)
2,960,333$

3,874,715
607,611
185,655(145,573)(3,405,288)(61,596)(893,168)(516,731)
81,473(1,178,303)
1,016,607(28,347,641)
17,419,719(5,653,876)
72,644(4,667,266)
309,427(95,154)(4,697,764)(638,786)
3,569,264
17,786,756(12,363,956)(1,471,320)
2,047,415(372,636)
5,781,979
1,556,056
16,571,643
7,922,306
7,324,688
441,303(624,627)(840,267)
1,987,962
28,464,111(17,838,272)(9,316,180)
23,892,930(41,535)(335,233)¥2,918,798$ 23,557,697

II. Cash Flows from Investing Activities
Payments from Purchase of Securities
Proceeds from Sale of Securities
Proceeds from Redemption of Securities
Payments from Increase in Money Held in Trust
Proceeds from Decrease in Money Held in Trust
Payments from Purchase of Premises and Equipment
Proceeds from Sale of Premises and Equipment
Payments from Purchase of Stock of Subsidiaries(not affecting the scope of consolidation)
Proceeds from Sale of Stock of Subsidiaries(not affecting the scope of consolidation)
Net Cash Used in Investing Activities
III. Cash Flows from Financing Activities
Proceeds from Issuance of Subordinated Borrowed Money
Repayments of Subordinated Borrowed Money
Proceeds from Issuance of Subordinated Bonds, Notes and Convertible Bonds
Repayments from Redemption of Subordinated Bonds, Notes and Convertible Bonds
Proceeds from Investments in Minority Interests
Dividends Paid
Stock Transfer Payments
Dividends Paid for Minority Interests
Payments from Purchase of Treasury Stock
Proceeds from Sales of Treasury Stock
Net Cash Used in Financing Activities
IV. Effects of Exchange Rate Changes on Cash and Cash Equivalents

Millions of yen

Thousands of
U.S. dollars

Fiscal 2000

Fiscal 2000¥(80,782,961)
58,620,081
18,957,642(756,913)
655,289(117,718)
63,299$(652,001,302)
473,124,146
153,007,610(6,109,066)
5,288,854(950,106)
510,890(961)(7,757)47386(3,362,193)(27,136,345)

166,000(306,778)
316,134(381,781)
800(43,407)(43,351)(42,259)(2,814)
2,693

1,339,790(2,476,015)
2,551,526(3,081,364)
6,457(350,341)(349,889)(341,076)(22,712)
21,743(334,763)(2,701,881)

15,074

121,663

V. Net Decrease in Cash and Cash Equivalents(763,083)(6,158,866)

VI. Cash and Cash Equivalents at the Beginning of the Year2,982,889

24,074,976

(0)

(4)

¥ 2,219,805$ 17,916,106

VII. Net Decrease in Cash and Cash Equivalents Resolved
from Exclusion of Subsidiaries from the Scope of Consolidation
VIII. Cash and Cash Equivalents at the End of the Year
See accompanying “Notes to Consolidated Financial Statements” which are an integral part of these statements.

CHAPTER 9

MIZUHO 103

Notes to the Consolidated Financial Statements

1. BASIS OF PRESENTATION
The accompanying consolidated financial statements have been prepared from the accounts maintained by Mizuho Holdings,
Inc. (“MHHD”) and its consolidated subsidiaries in accordance with the provisions set forth in the Commercial Code of Japanand the Securities and Exchange Law, and in conformity with accounting principles and practices generally accepted in Japan(the “Japanese GAAP”). The Japanese GAAP may differ to some degree from accounting principles and practices generally
accepted in countries and jurisdictions other than Japan.
Certain items presented in the consolidated financial statements filed with the Director of the Kanto Finance Bureau arereclassified for the convenience of readers outside Japan. In addition, the Consolidated Statement of Shareholders’ Equity ispresented and included in the consolidated financial statements, though it is not required to be filed with the Director of the
Kanto Finance Bureau. The notes to the consolidated financial statements include information which is not required underJapanese GAAP but are presented herein as additional information.
On September 29, 2000, The Dai-Ichi Kangyo Bank, Limited (“DKB”), The Fuji Bank, Limited (“Fuji Bank”) and The Industrial
Bank of Japan, Limited (“IBJ”) (collectively, the “Three Banks”) established MHHD by way of stock transfers. As a result of thistransaction, each of the Three Banks has become a wholly-owned subsidiary of MHHD.
The formation of MHHD and the stock-for-stock exchange of the Three Banks ( the “Combination”) were accounted for using
the pooling-of-interests method in accordance with “Accounting for the consolidation of the holding company established by
Stock Exchange or Stock Transfers” (JICPA Accounting Committee Research Report No. 6) and, as such, the assets and liabilitiesof the Three Banks are combined at book value. In addition, the Consolidated Statement of Income gives effect to the transaction
as if the transaction occurred at the beginning of the fiscal year presented, regardless of when the Combination was in effect.
As there are no accounting requirements for the financial statements to be restated for prior periods under Japanese GAAP,
the opening balances of the fiscal year in the Consolidated Statement of Shareholders’ Equity are presented, assuming MHHD
had existed as of April 1, 2000.
The amounts indicated in millions of yen are rounded down by truncating the figures below one million. Totals may not add
up exactly because of such truncation. Amounts in U.S. dollars are included solely for the convenience of readers outside Japan.
The rate of ¥123.90=US$1.00, the foreign exchange rate on March 31, 2001, has been used for translation. The inclusion ofsuch amounts is not intended to imply that Japanese yen has been or could be readily converted, realized or settled into U.S
dollars at that rate or any other rate.
2. PRINCIPLES OF CONSOLIDATION(1) Scope of consolidation
The consolidated financial statements include the accounts of MHHD and its subsidiaries (collectively, “MHFG”), including
DKB, Fuji Bank, IBJ, Mizuho Securities Co., Ltd., Mizuho Trust & Banking Co., Ltd. and 285 other subsidiaries. The consolidated financial statements do not include the accounts of ONKD, Inc., Nippon Carriere Co., Ltd. and other subsidiaries, as
they are considered immaterial in terms of the respective group ownerships of Total Assets and Net Income / Net Loss andRetained Earnings.
Investments in 91 affiliates, including The CIT Group, Inc., The Chiba Kogyo Bank, Ltd. and Shinko Securities Co., Ltd.,are accounted for under the equity method. Non-consolidated subsidiaries, including ONKD, Inc. and Nippon Carriere Co.,
Ltd. and certain affiliates, are not accounted for under the equity method, as they are not significant on the consolidated
financial statements of MHHD.
All significant intercompany accounts and transactions have been eliminated. In addition, all significant unrealized profit
included in assets resulting from transactions within the MHFG has also been eliminated.
The accounting standard for consolidated financial statements requires a company to consolidate all subsidiaries of which
the company controls the operations, irrespective of whether or not the company owns a majority of their shares. Control isconsidered to exist where the company has (a) the power to appoint or remove the majority of the Board of Directors or anequivalent governing body, and/or (b) the power to cast the majority of the votes at a meeting of the Board of Directors oran equivalent governing body.
(2) Year-end dates of consolidated subsidiaries
The accompanying consolidated financial statements include the accounts of subsidiaries whose fiscal year-ends are otherthan March 31. Fiscal year-ends of such subsidiaries are principally December 31.
Subsidiaries with fiscal year-ends of June 30, 2000, October 31, 2000 and November 30, 2000, performed tentative
annual closing and prepared financial statements as of and for the year ended December 31, 2000. Other consolidated
subsidiaries are consolidated based on respective fiscal year-ends after making necessary adjustments for significant transactions recorded during the period between these subsidiaries’ fiscal year-ends and the date of the consolidated financial
statements.

104 MIZUHO(3) Application of pooling-of-interests method
The Combination is accounted for by the pooling-of-interests method as risks and benefits are mutually shared by the former shareholders of the Three Banks and the acquiring entity is unable to be identified. The basis for this conclusion is asfollows:
1) Almost all of the common stocks with voting rights of the Three Banks are exchanged with those of MHHD with substantially identical rights, and there are no significant restrictions to voting rights, etc., on those exchanged stocks.
2) Fair values of the Three Banks are not significantly different from one another. Market capitalizations of each of the Three
Banks as of August 18, 1999, the day before the announcement of the Combination, were not significantly different
from one another. Market capitalizations, calculated by the number of voting common stocks issued multiplied by theclosing price at the Tokyo Stock Exchange on August 18, 1999, were as follows:
DKB:
1.094
Fuji Bank: 1.258
IBJ:
1.000
(Market capitalization of IBJ = 1.000)
Furthermore, market capitalizations based on the average closing price for the period from April 1, 1999 throughAugust 18, 1999, which were used to calculate the stock exchange ratio, were not significantly different from one anotheras follows:
DKB:
1.078
Fuji Bank: 1.192
IBJ:
1.000
(Market capitalization of IBJ = 1.000)
3) None of the Three Banks has dominance in decision-making processes of MHHD relating to significant financial, operating or business policies.
4) None of the Three Banks has dominance in the Board of Directors or other decision-making bodies of MHHD.
(4) Amortization of difference between cost and underlying interests
In principle, the difference between the fair value of net assets and the cost of the acquired subsidiary is being amortizedover a period within 20 years from the date of acquisition, and the unamortized balance is recorded as Consolidation
Differences on the Consolidated Balance Sheet. If these amounts have no material impact on the consolidated financial
statements of MHHD, it is charged or credited to income in the year of acquisition.

(2) Securities
MHHD adopted the Accounting Standard for Financial Instruments which requires securities to be classified into three categories based upon the management’s intent and these securities to be accounted for as follows:ii(i) trading securities are carried at market value and included in Trading Assets.
i(ii) bonds held to maturity are stated at amortized cost as determined by the moving average method although MHHD had
no such bonds as of March 31, 2001.
(iii) securities being available for sale, which are not classified as either of the above securities, are stated at cost or amortizedcost as determined by mainly the moving average method.
In addition, investments in non-consolidated subsidiaries and affiliates which are not accounted for by the equity
method are valued at cost as determined by the moving average method.
Securities included in Money Held in Trust are valued mainly on a mark-to-market basis.

MIZUHO 105

CHAPTER 9

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(1) Trading Assets and Trading Liabilities
Trading transactions intended to take advantage of short-term fluctuations and arbitrage opportunities in interest rates,
currency exchange rates, market prices of securities and related indices are recognized on a trade date basis and recordedin Trading Assets or Trading Liabilities on the Consolidated Balance Sheet.
Securities and other short-term credit instruments held for trading purposes are stated at fair value at the balance sheet
date. Derivative financial products, such as swaps, forward contracts and option transactions, are stated at their fair values,
assuming that such transactions were terminated and settled at the balance sheet date.
Trading Income and Trading Expenses include the interest received and interest paid during the fiscal year, the gains orlosses resulting from any change in the value of securities and monetary claims between the beginning and the end of the
fiscal year and the gains or losses resulting from any change in the value of financial derivatives between the beginning andthe end of the fiscal year, assuming they were settled at the end of the fiscal year.

(3) Derivatives
Derivative transactions other than for trading purposes are valued at fair value with changes in value charged to income.
Derivatives, which are qualified as hedges, are mainly accounted for using the deferral method of hedge accounting (see thefollowing note).
(4) Hedge Accounting
The macro-hedge method is adopted by the domestic banking and certain trust banking consolidated subsidiaries to manage the overall interest rate risks inherent in various financial assets and liabilities, such as loans and deposits, using derivatives. This risk management method is referred to as the “Risk-Adjusted Approach” in “Tentative Accounting and Auditing
Treatment relating to Adoption of ‘Accounting for Financial Instruments’ for Banks” (JICPA Industry Audit Committee
Report No.15), under which the deferral method of hedge accounting is used. The effectiveness of hedges is assessed bychecking (i) whether the total net risk amount of derivative instruments, used to reduce risk, falls within the risk limit determined in the risk management policy, and (ii) whether interest risk exposures from hedged items have been reduced.
For certain other assets or liabilities, MHHD applies the deferral method, the fair value method or accrual method specifically allowed for certain interest swaps under the new accounting standard for financial instruments. Under the deferral
method, the recognition of income or expenses arising from a hedging instrument is deferred when income or expense arising on the hedged items is recognized. Under the fair value method, any changes in the fair value of the hedged item or
hedging instrument are recognized as income or expense as incurred.
Hedge accounting similar to the above-mentioned is adopted by consolidated subsidiaries other than certain domestic
consolidated leasing subsidiaries. “Portfolio Hedge for Liabilities” is adopted by such leasing subsidiaries to manage, using
derivatives, cash flow risk inherent in the gaps between lease payments received (long-term, fixed rate) and funding liabilities (short-term, variable rate). This hedge method is prescribed in “Tentative Accounting and Auditing Treatment relating to
Adoption of ‘Accounting for Financial Instruments’ for Leasing Companies“ (JICPA Industry Audit Committee Report No.19)
and the deferral method is adopted for hedge accounting. The contract amount and the unrealized losses of derivativetransactions used for this Portfolio Hedge for Liabilities, mainly interest rate swaps, are ¥79,800 million ($644,068 thousand)and ¥1,857 million ($14,995 thousand), respectively.
(5) Translation of Foreign Currencies
Assets and liabilities, held by the domestic banking and trust banking consolidated subsidiaries, denominated in foreign
currencies are translated into yen primarily using the exchange rates prevailing at the balance sheet date. However, thefollowing items are translated at historical exchange rates: (i) investments in foreign companies, excluding those fundedby foreign currencies, and (ii) foreign currency assets and liabilities which were determined inappropriate to be included in
the balance of spot foreign currency assets and liabilities by the domestic banking and trust banking consolidated subsidiaries. The accounts of overseas branches are translated into yen using the exchange rates prevailing at the balance sheet
date. Foreign currency assets and liabilities held by other consolidated subsidiaries are translated into yen at the exchange
rates prevailing at the end of the fiscal years of the respective subsidiaries.
(6) Premises and Equipment
Depreciation of buildings has been computed mainly by the straight-line method, and that of equipment has been computed
mainly by the declining-balance method with the following range of useful lives:
Buildings
3 years to 50 years
Equipment 2 years to 20 years(7) Software
Development costs for internally used software are capitalized and amortized under the straight-line method over their estimated useful lives of mainly five years.
(8) Deferred Debenture Charges
Deferred Debenture Charges are amortized as follows:
Debenture discounts are amortized over the term of the debenture.
Debenture issuance costs are amortized over the term of the debentures, up to the maximum of three years, which is thelongest period permitted under the Commercial Code of Japan.

106 MIZUHO(9) Reserve for Possible Losses on Loans
Reserves for Possible Losses on Loans of major domestic consolidated subsidiaries are maintained in accordance with internally established standards for write-offs and provisions:• For credits extended to obligors that are legally bankrupt under the Bankruptcy Law, Special Liquidation in the Commercial
Law or the like (“Bankrupt Obligors”), and to obligors that are effectively in similar conditions (“Substantially Bankrupt
Obligors”), reserves are maintained at 100% of amounts of claims net of expected amounts recoverable from the disposalof collateral and/or the amounts recoverable under guarantees.
• For credits extended to obligors that have not yet gone legally or formally bankrupt but who are substantially bankrupt,
reserves are maintained at the amount deemed necessary based on overall solvency analyses, out of the amount of claims
less expected amounts recoverable from the disposal of collateral and/or the amounts recoverable under guarantees.
• For credits extended to other obligors, reserves are maintained at rates derived from historical credit loss experiences, etc.
• Reserves for Possible Losses on Loans to Restructuring Countries (including Reserves for Losses on Overseas Investments
prescribed in Article 55-2 of the Exceptions to the Tax Laws Act) are maintained in order to cover possible losses based on
the analyses of political and economic climates of the countries.
All credits are assessed by each credit origination department, and the results of the assessments are verified and examined by the independent examination department. Reserves for Possible Losses on Loans are provided on the basis of suchaudited assessments.
In case of loans to bankrupt obligors or substantially bankrupt obligors, who are collateralized or guaranteed by a third
party, the amounts deemed uncollectible are charged off against the respective loan balances. The total charge-off amountis ¥2,838,028 million ($22,905,796 thousand) at the end of the fiscal year.
Other consolidated subsidiaries provide the amount necessary to cover the loan losses based upon past experience forgeneral claims, and their management’s assessment for other claims.
(10) Reserve for Possible Losses on Securities
Reserves for Possible Losses on Securities are maintained to provide against possible losses on securities, after taking into
consideration the financial conditions and other relevant factors concerning the subject entity.
(11) Reserve for Employee Retirement Benefits
Reserve for Employee Retirement Benefits, which is provided for the future pension payment to employees, is recorded as
the amount accrued at the end of the fiscal year, based on the projected benefit obligation and the estimated pension plan
asset amounts at the end of the fiscal year.
Unrecognized actuarial gains or losses are recognized as income or expenses from the following fiscal year under thestraight-line method over a certain term within the average remaining service period of the current employees.
With respect to unrecognized net obligation at the date of initial application amounting to ¥351,530 million ($2,837,213
thousand), ¥144,166 million ($1,163,573 thousand) has currently been expensed due to the establishment of the retirement benefit trust, and the remainder is to be recognized equally as an expense over mainly five years.
The consolidated subsidiaries principally have funded pension plans for their employees.
(12) Reserve for Possible Losses on Loans Sold
Reserve for Possible Losses on Loans Sold is provided to cover possible losses on loans sold to the Cooperative Credit
Purchasing Company, Limited, taking into account the value of collateral pledged.

(14) Lease Transactions
Finance leases of MHHD and domestic consolidated subsidiaries that do not involve the transfer of ownership to the lessee
at the end of the lease term are accounted for as operating leases.
Lease transactions of foreign consolidated subsidiaries are principally accounted for as either capital leases or operatingleases.
(15) Scope of Cash and Cash Equivalents in Consolidated Statement of Cash Flows
In the Consolidated Statement of Cash Flows, Cash and Cash Equivalents consist of cash and due from central banks.

MIZUHO 107

CHAPTER 9(13) Reserve for Possible Losses on Support of Specific Borrowers
Reserve for Possible Losses on Support of Specific Borrowers is provided to cover losses on write-offs of loans to assist or
facilitate the restructuring of certain borrowers.

(16) Income Taxes
Deferred Tax Accounting is adopted for corporate income taxes, local inhabitants’ taxes and enterprise taxes. The asset
and liabilities method is used to provide income taxes on all transactions recorded in the consolidated financial statements.
Deferred income taxes are determined based on the differences between the tax bases of assets and liabilities and those asreported in the consolidated financial statements, using enacted tax rates which will be in effect when the differences are
expected to reverse.
(17) Appropriation of Retained Earnings
Cash dividends and bonuses to directors and statutory auditors are recorded in the fiscal year in which the proposed appropriation of Retained Earnings is approved by the Board of Directors and/or by the general meeting of the shareholders.
(18) Net Income per ShareNet Income per Share is computed based on the weighted-average number of shares of common stock outstanding during
the fiscal year.
Net Income per Share (diluted) is computed based on the average number of shares of common stock outstanding during
the fiscal year, after giving effect to the dilutive potential of the shares of common stock to be issued upon the conversion
of preferred stock.
4. TRADING ASSETS AND LIABILITIES
Trading Assets and Liabilities at March 31, 2001 consisted of the following:

Trading Assets:
Trading Securities
Derivatives for Trading Securities
Securities Held to Hedge Trading Transactions
Derivatives for Securities Held to Hedge Trading Transactions
Derivatives for Trading Transactions
Other Trading Assets
Total
Trading Liabilities:
Trading Securities Oversold
Derivatives for Trading Securities
Securities Oversold to Hedge Trading Transactions
Derivatives for Securities Held to Hedge Trading Transactions
Derivatives for Trading Transactions
Total

Millions of yen

Thousands of
U.S. dollars¥ 6,116,519
2,449
47,602382
2,952,840
1,757,680$49,366,585
19,772384,201
3,087
23,832,447
14,186,286¥10,877,475$87,792,378¥1,425,289
1,402
45,691491
3,214,825$11,503,548
11,323368,775
3,966
25,946,939¥4,687,700$37,834,551

5. SECURITIESSecurities at March 31, 2001 consisted of the following:

Japanese National Government Bonds
Japanese Local Government Bonds
Japanese Corporate Bonds
Japanese Stock and Shares*1
Others*2
Total

Millions of yen

Thousands of
U.S. dollars¥11,641,796
476,375
1,126,151
8,391,951
6,426,288$ 93,961,228
3,844,839
9,089,199
67,731,653
51,866,735¥28,062,563$226,493,654*1 Japanese Stock and Shares included investments in non-consolidated subsidiaries and affiliates which are not accounted for under the equity method of ¥141,211 million ($1,139,718 thousand)at March 31, 2001.
*2 Others included investments in non-consolidated subsidiaries and affiliates which are not accounted for under the equity method of ¥234,687 million ($1,894,165 thousand) at March 31, 2001.

108 MIZUHO

6. LOANS AND BILLS DISCOUNTED
Loans and Bills Discounted at March 31, 2001 consisted of the following:

Bills Discounted
Loans on Notes
Loans on Deeds
Overdrafts
Financing Receivables, including Factoring, Leasing
and Property Financing

Millions of yen

Thousands of
U.S. dollars¥ 1,278,023
13,167,367
58,106,258
18,593,064$ 10,314,959
106,274,155
468,977,065
150,065,091

1,142,058

9,217,580¥92,286,772$744,848,850

Millions of yen

Thousands of
U.S. dollars¥ 470,031
2,169,692$ 3,793,636
17,511,643

Restructured Loans*4

124,800
1,791,770

1,007,272
14,461,423

Total¥4,556,295$36,773,974

Total

Loans and Bills Discounted at March 31, 2001 included the following:

Loans to Bankrupt Borrowers*1
Non-Accrual Delinquent Loans*2
Loans Past Due for 3 Months or More*3*1 Loans to Bankrupt Borrowers represent nonaccrual loans to borrowers who are legally bankrupt as defined in Article 96-1-3 and 4 of the Japanese Tax Law Enforcement Regulation(Article 97 of 1965 Cabinet Order).
*2 Non-Accrual Delinquent Loans represent nonaccrual loans other than (i) Bankruptcy Loans and (ii) loans of which payments of interest are deferred in order to assist or facilitate therestructuring of borrowers in financial difficulties.
*3 Loans to Bankrupt Borrowers or Non-Accrual Delinquent Loans, both of which are classified as nonaccrual, are not included in this category.
*4 Restructured Loans represent loans on which contracts were amended in favor of borrowers (e.g., the reduction of or exemption from stated interest, the deferral of interest payments,
the extension of maturity dates, or renunciation of claims) in order to assist or facilitate the restructuring of borrowers in financial difficulties.

Commitment Line for Loans
Overdraft protection on current accounts and contracts for the commitment line for loans are contracts by which consolidated
subsidiaries are bound to extend loans up to the prearranged amount, at the request of customers, unless the customer is inbreach of contract conditions. The unutilized balance of these contracts amounts to ¥46,196,982 million ($372,857,004 thousand). ¥39,820,509 million ($321,392,328 thousand) of this amount relates to contracts of which original contractual terms areof a term of one year or less, or unconditionally cancelable at any time.
Since many of these contracts expire without the rights exercised, the unutilized balance itself does not necessarily affectfuture cash flows of MHHD and its consolidated subsidiaries. A provision is included in many of these contracts that entitles
the consolidated subsidiaries to refuse the execution of loans, or reduce the maximum amount under contracts when there is achange in the financial situation, necessity to preserve a claim, or other similar reasons. The consolidated subsidiaries obtain,
moreover, real estate or securities as collateral at the time the contracts are entered into, if needed, and subsequently monitor
a customer‘s business condition periodically, based on and in accordance with procedures established, and take measures tocontrol credit risks such as amendments to the contracts, if needed.

CHAPTER 9

MIZUHO 109

7. FOREIGN EXCHANGE ASSETS AND LIABILITIESForeign Exchange Assets and Liabilities at March 31, 2001 consisted of the following:

Foreign Exchange Assets:
Foreign Bills Bought
Foreign Bills Receivable
Advance to Foreign Banks
Due from Banks (Foreign)
Total
Foreign Exchange Liabilities:
Foreign Bills Sold
Foreign Bills Payable
Advance from Foreign Banks
Due to Banks (Foreign)
Total

Millions of yen

Thousands of
U.S. dollars¥486,300
269,833
7,165
81,978$3,924,943
2,177,833
57,829661,652¥845,277$6,822,257¥ 33,081
27,65475,929137,183$ 267,001
223,204
612,832
1,107,211¥273,849$2,210,248

8. OTHER ASSETS
Other Assets at March 31, 2001 consisted of the following:Thousands of
U.S. dollars

Millions of yen

Accrued Income
Prepaid Expenses
Cash Placed as Collateral on Securities Borrowed
Securities in Custody and Other
Deferred Hedge Losses*1
Derivatives
Others*2
Total¥

442,344
97,462
2,785,176
4,787,890
516,356
2,190,966
4,120,529¥14,940,725$

3,570,174
786,624
22,479,226
38,643,180
4,167,524
17,683,343
33,256,895$120,586,966*1 Deferred Hedge Losses is net realized or unrealized losses from hedging instruments. The gross amounts of deferred hedge gains and losses before netting are ¥1,901,193 million($15,344,579 thousand) and ¥2,417,549 million ($19,512,103 thousand), respectively.
*2 Others included provisional tax payments of ¥222,682 million ($1,797,276 thousand) made by IBJ. These payments were made upon receipt of the Correction Notice from the Tokyo
Regional Taxation Bureau (“TRTB”) on August 23, 1996 in connection with the write-off of credits due from Japan Housing Loan, Inc., amounting to ¥376,055 million ($3,035,149 thousand) recorded in the fiscal year ended March 1996. The subsidiary disputed the rationale for the proposed correction and filed an application seeking to void the proposed correction to
the National Tax Tribunal for administrative review. This was dismissed on October 28, 1997. On October 30, 1997, the subsidiary filed a lawsuit with the Tokyo District Court seeking tovoid the TRTB’s administrative action against the subsidiary and won the case entirely on March 2, 2001, but this has been appealed to the Tokyo High Court on March 16, 2001.

9. PREMISES AND EQUIPMENT
Premises and Equipment at March 31, 2001 consisted of the following:

Land
Buildings
Equipment
Others
Total
Accumulated Depreciation

110 MIZUHOMillions of yen

Thousands of
U.S. dollars¥1,093,175
288,300
79,333
252,547$ 8,823,049
2,326,879
640,300
2,038,316¥1,713,356$13,828,544¥ 793,130$ 6,401,377

10. DEFERRED DEBENTURE CHARGES
Deferred Debenture Charges at March 31, 2001 consisted of the following:

Deferred Discount on Debentures
Deferred Debenture Issuance Costs
Total

Millions of yen

Thousands of
U.S. dollars¥7,617
1,913$61,479
15,447¥9,531$76,926

11. RESERVE FOR POSSIBLE LOSSES ON LOANS
Reseve for Possible Losses on Loans at March 31, 2001 consisted of the following:

General Reserve for Possible Losses on Loans
Specific Reserve for Possible Losses on Loans
Reserve for Possible Losses on Loans to Restructuring Countries
Total

Millions of yen

Thousands of
U.S. dollars¥ 780,774
817,943
28,914$ 6,301,648
6,601,644
233,368¥1,627,632$13,136,660

Millions of yen

Thousands of
U.S. dollars

12. ASSETS PLEDGED AS COLLATERALThe following assets were pledged as collateral at March 31, 2001.

Cash and Due from Banks
Call Loans and Bills Purchased
Trading Assets
Securities
Loans and Bills Discounted
Other Assets
Premises and Equipment

¥

1,761
50,0001,002,499
7,473,073
3,273,799
344,964
136$

14,217
403,551
8,091,200
60,315,367
26,422,921
2,784,220
1,102

The following liabilities were collateralized by the above assets:

Deposits
Call Money and Bills Sold
Trading Liabilities
Borrowed Money
Other Liabilities

Millions of yen

Thousands of
U.S. dollars¥ 452,944
5,870,347
235,254
77,27464,898$ 3,655,725
47,379,718
1,898,748
623,685
523,797

MIZUHO 111

CHAPTER 9

In addition, Borrowed Money amounting to ¥7,593 million ($61,288 thousand) was pledged by stocks which are depositedby customers as collateral for loan transactions in relation to sales of securities. In addition, the settlement accounts of foreign
currency transactions or margins for futures transactions are collateralized or substituted by Cash and Due from Banks of¥95,536 million ($771,076 thousand), Trading Assets of ¥15,943 million ($128,681 thousand), Securities of ¥3,454,548 million($27,881,746 thousand), Loans and Bills Discounted of ¥368,116 million ($2,971,077 thousand) and Other Assets of ¥45,734
million ($369,128 thousand). None of the assets pledged are collateral in connection with borrowings by the unconsolidated
subsidiaries and the affiliates.
Guarantee deposits amounting to ¥184,914 million ($1,492,448 thousand) were included in Premises and Equipment.
Margins for futures transactions amounting to ¥46,429 million ($374,735 thousand) and margins on securities borrowed
amounting to ¥2,785,176 million ($22,479,226 thousand) were included in Other Assets.

13. DEPOSITS
Deposits at March 31, 2001 consisted of the following:
Millions of yen

Thousands of
U.S. dollars

Current Deposits
Ordinary Deposits
Deposits at NoticeTime Deposits
Certificates of Deposit
Others¥ 4,902,910
17,662,700
1,935,274
37,020,164
12,851,673
5,803,760$ 39,571,513
142,556,095
15,619,645
298,790,674
103,726,175
46,842,298

Total¥80,176,482$647,106,400

14. DEBENTURES
IBJ issues debentures twice a month and offers them to institutional and private investors as a main source of funds for its operations. It provides debentures with a variety of different terms in order to attract more investors. Debentures at March 31, 2001,
were as follows:
Description of Debentures

Millions of yen

Thousands of U.S. dollars

Interest rates¥ 5,388,567[5,388,567]$ 43,491,259[43,491,259]

0.11%–0.34%

400
[400]

3,232
[3,232]Five-Year Coupon Debentures (Series A)

9,478,533[2,169,188]

76,501,477[17,507,571]

1.00%–2.70%

Five-Year Coupon Debentures (Series B)

198,578[52,441]

1,602,732[423,256]

0.20%–2.30%

Five-Year Coupon Debentures(with compounding interests)

940,695[209,228]

7,592,381[1,688,691]

0.20%–2.30%

Five-Year Coupon Debentures (savings-type)802,892[109,821]

6,480,164[886,369]

0.20%–2.30%

Five-Year Coupon Debentures(savings-type with compounding interests)

93,158[16,380]

751,888[132,211]

0.20%–2.30%

Two-year Coupon Debentures

917,900[598,100]

7,408,394[4,827,280]

0.30%–0.75%

27,531[—](US$85,000)

222,207[—]3.60%–9.37%¥17,848,257$144,053,734

One-Year Discount Debentures
One-Year Discount Debentures (custody only)

Debentures Denominated in Foreign Currencies

Total

0.06%

Notes: 1. Figures indicated in brackets [ ] represent the amounts to be redeemed within one year.
2. The amount of foreign currency denominated bonds is shown in original currency in parentheses ( ).
3. Repayments for Debentures are scheduled for the next five years as follows:
Fiscal 2001 ¥8,544,127 million ($68,959,870 thousand)2002 ¥2,685,858 million ($21,677,635 thousand)2003 ¥2,165,786 million ($17,480,118 thousand)2004 ¥2,118,029 million ($17,094,671 thousand)2005 ¥2,324,734 million ($18,762,994 thousand)4. No collateral was provided for the above Debentures.

15. CALL MONEY AND BILLS SOLD
Call Money and Bills Sold at March 31, 2001 consisted of the following:
Millions of yen

Thousands of
U.S. dollars

Call Money
Bills Sold

¥11,810,988
1,397,087$ 95,326,786
11,275,929

Total¥13,208,076$106,602,715

112 MIZUHO16. COMMERCIAL PAPER
Commercial Paper at March 31, 2001 consisted of the following:

Commercial Paper

Millions of yen

Thousands of
U.S. dollars¥2,369,254$19,122,315

Averageinterest rate*1

1.72%*1 The average interest rate is the weighted-average interest rate of debts calculated from the interest rates and outstanding balances at year-end.

17. BORROWED MONEY
Borrowed Money at March 31, 2001 consisted of the following:
Millions of yen

Thousands of
U.S. dollars

Averageinterest rate*1

Bills Rediscounted
Other Borrowings*2,3¥ 10,680
3,861,264$
86,20031,164,366

5.21%
3.56

Total

¥3,871,945$31,250,566

3.57%*1 Average interest rates are weighted-average interest rates of debts calculated from the interest rates and outstanding balances at year-end.
*2 Other Borrowings included subordinated debt of ¥2,261,707 million ($18,254,296 thousand) at March 31, 2001.
*3 Repayments for Other Borrowings are scheduled for the next five years as follows:
Fiscal 2001
¥856,278 million ($6,911,047 thousand)
2002¥904,598 million ($7,301,038 thousand)
2003¥173,815 million ($1,402,872 thousand)
2004¥316,366 million ($2,553,399 thousand)
2005¥351,478 million ($2,836,795 thousand)

18. BONDS AND NOTES
Major components of Bonds and Notes at March 31, 2001 were as follows:
IssuerDescription

Issue

Millions of yen

Thousands of U.S. dollars

Interest rates

Due

MizuhoHoldings

Straight Bonds

Nov. 22, 2000

¥ 850,000[—]$ 6,860,371[—]

0.88%–1.23%

Mar. 2008–*1

Straight Bonds

Mar. 1998–
Mar. 2001

168,100[—]

1,356,740[—]

1.38%–2.58%

Dec. 2010–*2

Straight Bonds

Sept. 1997

3,100
[—]

25,020[—]3.00%

Nov. 2012*3

Straight Bonds

Dec. 1991–
Mar. 2001

797,523[10,380](US$505,000)(GBP 7,000)

6,436,829[83,782]

0.51%–8.39%

Jan. 2001–*4

Straight Bonds

Mar. 1993–
Mar. 2001

1,583,650[275,721](US$8,393,058)

12,781,679[2,225,353]

0.40%–8.62%

Apr. 2001–*5

Straight Bonds

June 1989–
Dec. 2000

595,644[34,769](US$414,442)(EUR 9,130)

4,807,463[280,628]

0.05%–8.80%

Apr. 2001–¥3,998,017$32,268,102

Total*1 indicates the total amount of straight bonds issued by the domestic consolidated subsidiary, The Yasuda Trust and Banking Company, Ltd.
*2 indicates the amount of straight bonds issued by IBJ.
*3 indicates the total amount of straight bonds issued by the overseas consolidated subsidiaries such as DKB Finance (Aruba) A.E.C., Dai-Ichi Kangyo Australia Ltd., DKB Asia Ltd. and others.
*4 indicates the total amount of straight bonds issued by the overseas consolidated subsidiaries such as The Fuji Bank and Trust Company, Fuji International Finance (Australia) Ltd.,
Heller Financial, Inc., YTB Finance (Aruba) A.E.C., and Fuji Finance (Cayman) Ltd.
*5 indicates the total amount of straight bonds issued by the overseas consolidated subsidiaries such as The Industrial Bank of Japan Finance Company N.V.,
Mizuho International plc, IBJ Australia Bank Ltd.

MIZUHO 113

CHAPTER 9

Notes: 1. Figures indicated in brackets [ ] represent the amounts to be redeemed within one year.
2. The amount of foreign currency denominated bonds is shown in original currencies in brackets ( ).
3. Repayments for Bonds and Notes are scheduled for the next five years as follows:
Fiscal 2001 ¥320,871 million ($2,589,763 thousand)2002 ¥236,867 million ($1,911,766 thousand)2003 ¥135,422 million ($1,092,995 thousand)2004 ¥ 76,357 million ($ 616,284 thousand)2005 ¥ 28,482 million ($ 229,886 thousand)4. Bonds and Notes at March 31, 2001 includes subordinated bonds and notes of ¥3,191,880 million ($25,761,745 thousand).

19. CONVERTIBLE BONDS
Convertible Bonds at March 31, 2001 consisted of the following:
Issuer Description of Debentures

Issue* Convertible Bonds

Nov. 1986–
July 1988

Millions of yen

Thousands of
U.S. dollars¥8,088$65,280[371](US$65,280)
Notes: 1. Figures indicated in brackets [ ] represent the amounts to be redeemed within one year.
2. The amount of foreign currency denominated bonds is shown in original currency in brackets ( ).
3. Details of conditions are as follows:
Description

Convertible Period

Conversion
priceInterest rates

Due

1.75%–2.87%

Sept. 2001–
Sept. 2003

Issuing share

US$ denominated convertible bonds due Sept. 30, 2003 Aug. 15, 1988–Sept. 22, 2003 ¥1,814.90
US$ denominated convertible bonds due Sept. 30, 2001 Dec. 1, 1986–Sept. 20, 2001 ¥1,119.30
US$ denominated convertible bonds due Sept. 30, 2002 Oct. 1, 1987–Sept. 20, 2002 ¥2,163.90
US$ denominated convertible bonds due Sept. 30, 2003 Aug. 15, 1988–Sept. 22, 2003 ¥1,814.90
4. Repayments for Convertible Bonds are scheduled for the next five years as follows:
Fiscal 2001 ¥ 371 million ($ 3,000 thousand)2002 ¥4,078 million ($32,920 thousand)2003 ¥3,637 million ($29,360 thousand)2004 ¥— million
2005 ¥— million

Capitalization

Common stock ¥ 908/share
Common stock ¥ 560/share
Common stock ¥1,082/share
Common stock ¥ 908/share* The Yasuda Trust and Banking Company, Ltd. (the domestic consolidated subsidiary)

20. OTHER LIABILITIESOther Liabilities at March 31, 2001 consisted of the following:Thousands of
U.S. dollars

Millions of yen

Accrued Expenses
Unearned Income
Income Taxes Payable
Cash Received as Collateral on Securities Lent
Securities Borrowed
Derivatives
OthersTotal¥

477,474
206,898
91,973
4,605,260
4,474,393
2,143,396
9,187,445¥21,186,842$

3,853,707
1,669,886
742,318
37,169,176
36,112,942
17,299,406
74,152,103$170,999,538

21. RESERVE FOR RETIREMENT BENEFITS(1) Employees of major domestic consolidated subsidiaries are entitled, with some conditions, to receive lump-sum indemnities
or annuity payments for life upon their termination of employment. The amount of the benefits is determined by the current
rate of pay, length of service and the conditions under which their termination occurs.
The major domestic consolidated subsidiaries have contributory funded defined benefit pension plans under the Japanese
Welfare Pension Insurance Law (the “JWPIL”) and which are qualified by the tax authority and severance indemnity plans.
The pension plans under the JWPIL cover a portion of the governmental welfare pension program, under which the contributions are made by such subsidiaries and their employees.
Certain domestic consolidated banking subsidiaries establish self-insured pension plans and certain overseas consolidated
subsidiaries also establish defined benefit pension plans.
In addition, domestic banking and certain trust banking consolidated subsidiaries establish employee retirement benefit
trusts.

114 MIZUHO(2) Reserve for Retirement Benefits at March 31, 2001 was analyzed as follows:
Millions of yen

Thousands of
U.S. dollars¥(1,331,938)
989,281$(10,750,107)
7,984,517

Unfunded Retirement Benefit Obligations
Unrecognized Net Obligation at Date of Initial Application
Unrecognized Actuarial Differences
Unrecognized Prior Service Cost

(342,656)
165,714141,722—(2,765,590)
1,337,482
1,143,843—

Net Amounts Reported in the Consolidated Balance Sheet
Prepaid Pension Cost
Other Liabilities(35,220)
91,027(196)(284,265)
734,682(1,587)¥ (126,050)$ (1,017,360)

Projected Benefit Obligations
Plan Assets

Reserve for Retirement Benefit

Note: The above Projected Benefit Obligations includes the governmental welfare program, but does not include additional retirement benefits
paid to their employees.
It also includes the amount measured by certain consolidated subsidiaries under the non-actuarial method.

(3) The breakdown of Pension Expenses for the year ended March 31, 2001 was as follows.

Service Cost*1
Interest Cost
Expected Return on Plan Assets
Amortization of Prior Service Cost
Amortization of Actuarial Differences
Amortization of Unrecognized Net Obligation at Date of Initial Application*2
Others (such as Extra Retirement Benefit)
Net Pension Expenses

Millions of yen

Thousands of
U.S. dollars¥ 37,666
45,411(36,610)—316
185,8162,017$ 304,007
366,521(295,484)—
2,552
1,499,731
16,284¥234,618$1,893,611*1 Retirement expenses of some consolidated subsidiaries which adopt the simplified method for calculating projected benefit obligations are included in Service Cost in full.
*2 Amortized projected benefit obligations at the beginning of this fiscal year arising from the establishment of the retirement benefit trust amounting to ¥144,166 million ($1,163,573 thousand) is included in the above table.

(4) Assumptions used in calculation of the above information were as follows:
Discount rate
Expected rate of return on plan assets
Method of attributing the projected benefits to periods of services
Amortization of unrecognized actuarial differences

2.5–7.7%
1.0–9.0%
Straight-line basis
1–15 years

Unrecognized actuarial differences are recognized as income or expenses from the following fiscal
year under the straight-line method over the average remaining service period of the current employee. For some consolidated subsidiaries, differences are charged to income in the year of change.

Amortization of unrecognized net obligation at date of initial application

Mainly 5 years
CHAPTER 9

Unrecognized net obligation at the date of initial application is generally to be recognized by thestraight-line method as an expense over five years. Some consolidated subsidiaries amortized theentire net obligation to income in the current fiscal year.

22. OTHER RESERVES
Other Reserves at March 31, 2001 consisted of the following:Reserve for Contingencies*1
Reserve for Contingent Liabilities from Futures Transactions
Reserve for Contingent Liabilities from Securities Transactions
Total

Millions of yen

Thousands of
U.S. dollars¥24,032
104
603$193,968
844
4,873¥24,740$199,685*1 Reserve for Contingencies is maintained to cover losses arising from matters not covered by other specific reserves that are probable to take place and that are determinable in amounts.

MIZUHO 115

23. ACCEPTANCES AND GUARANTEES(1) All commitments and contingent liabilities of a material nature resulting from guarantees or otherwise are included in thecontra-accounts “Acceptances and Guarantees” and “Customers’ Liabilities for Acceptances and Guarantees.”
The outstanding balance of the accounts at March 31, 2001 consisted of the following:Thousands of
U.S. dollars

Millions of yen

Acceptances
Letters of Credit
Guarantees
Total

¥

33,281
683,543
5,412,816$

268,618
5,516,895
43,686,977¥6,129,641$49,472,490(2) The principal amounts indemnified for jointly operated designated money trusts and loan trusts, which are entrusted todomestic consolidated trust banking subsidiaries, are ¥665,796 million ($5,373,658 thousand) and ¥2,394,557 million($19,326,532 thousand), respectively.
24. REVALUATION OF LAND
In accordance with the Land Revaluation Law, land used for business operations of domestic consolidated banking subsidiaries
was revalued on March 31, 1998. In accordance with Article 119 of the 1998 Cabinet Order Article 2-4 of the Enforcement
Ordinance relating to the Land Revaluation Law, the revaluation was performed by the method of calculating the value alongwith reasonable adjustments, such as for the shape of land.
The income tax on the entire excess of revaluation is included in Deferred Tax Liabilities for Revaluation Reserve for Land, andthe remainder, net of the tax, is stated as Revaluation Reserve for Land in Shareholders’ Equity.
The difference at the balance sheet date between the total fair value of land for business operation purposes, which has
been revalued in accordance with Article 10 of the above-mentioned law, and the total book value of the land after such
revaluation is ¥189,246 million ($1,527,411 thousand). Similar treatment has been adopted for certain consolidated overseas
subsidiaries.
25. COMMON STOCK AND PREFERRED STOCK
Common Stock and Preferred Stock at March 31, 2001 consisted of the following:
Number of sharesClass of shares

Common SharesFirst Series Class I Preferred Shares
Second Series Class II Preferred Shares
Third Series Class III Preferred Shares
Fourth Series Class IV Preferred Shares
Fifth Series Class V Preferred Shares
Sixth Series Class VI Preferred Shares
Seventh Series Class VII Preferred Shares
Eighth Series Class VIII Preferred Shares
Ninth Series Class IX Preferred Shares
Tenth Series Class X Preferred Shares

Per shares (Yen)

Authorized

Issued andoutstanding

Interimcash dividend

Year-end
cash dividend

Liquidation
value

Convertible
or notWith
redemption
or not25,000,000
33,000100,000
100,000
150,000
52,411150,000
125,000
125,000
140,000
140,000

9,205,856.53
33,000100,000
100,000
150,000
52,411150,000
125,000
125,000
140,000
140,000¥ 3,500
11,2504,100
7,000
23,8003,750
21,000
5,500
4,000
8,750
2,690

¥ 3,500
11,2504,100
7,000
23,8003,750
21,000
5,500
4,000
8,750
2,690

—
3,000,000
2,000,000
2,000,000
2,000,000
3,000,000
2,000,000
2,000,000
2,000,000
1,250,000
1,250,000

—
*
*
*
—
*
—
*
*
*
*

—
—
—
—
*
—
*
*
*
—
—

Holders or registered pledgees of Preferred Shares are entitled to receive annual dividends, and distribution of residual assetsof MHHD, as set out above in priority to holders of the Shares but pari passu among themselves.
MHHD may pay up to one-half of the annual dividend payable on each class of Preferred Shares as an interim dividend.
Dividends on the Preferred Shares are not cumulative. Holders of Preferred Shares are not entitled to vote at a general meetingof shareholders except where the law entitles holders of Preferred Shares to vote.

116 MIZUHOAll Preferred Shares except Class IV preferred shares and Class VI preferred shares are convertible into Shares at the option of
the holder. Material terms and conditions of conversion are as follows:First Series Class I
Preferred Shares

Conversion period*1

Conversion ratio*2

September 29, 2000 to
July 31, 2005

3.766 to be reset on August 1 every year (each, a “Reset Date”) as¥3,000,000/(current market price), where the current market price is theaverage price of daily closing prices (including closing bid or offered price)of Shares as reported by the Tokyo Stock Exchange (the “TSE”) for the 30
consecutive trading days (excluding trading days on which no closing price,closing bid or offered price is reported) commencing on the 45th trading dayprior to the Reset Date, provided that the reset conversion ratio shall be neither
less than the conversion ratio applicable on the date immediately prior to the
Reset Date nor more than 4.000.
¥2,000,000/(current market price x 1.025), where the current market price isthe higher of (x) the average price of daily closing prices (including closing bid
or offered price) of Shares as reported by the TSE for the 30 consecutive trading days (excluding trading days on which no closing price, closing bid oroffered price is reported) commencing on the 45th trading day prior toAugust 1, 2004 and (y) ¥637,600, to be reset on August 1, 2005 using thesame formula mutatis mutandis.

Third Series Class III
Preferred Shares

August 1, 2005 toJuly 31, 2008

¥2,000,000/(current market price x 1.025), where the current market price isthe higher of (x) the average price of daily closing prices (including closing bid
or offered price) of Shares as reported by the TSE for the 30 consecutive trading days (excluding trading days on which no closing price, closing bid oroffered price is reported) commencing on the 45th trading day prior toAugust 1, 2005 and (y) ¥637,600, to be reset on August 1, 2006 and August
1, 2007 using the same formula mutatis mutandis.

Fifth Series Class V
Preferred Shares

September 29, 2000 to
January 31, 2002

¥1,279,300.

Seventh Series Class
VII Preferred Shares

October 1, 2006 to
January 31, 2011

¥2,000,000/(conversion price), where the conversion price is the higher of (x)the average price of daily closing prices (including closing bid or offered price)of Shares as reported by the TSE for the 30 consecutive trading days (excluding trading days on which no closing price, closing bid or offered price isreported) commencing on the 45th trading day prior to October 1, 2006
multiplied by 1.025 and (y) ¥420,000; to be reset on October 1 of each year
between 2007 and 2010 (each, a “Reset Date”) as ¥2,000,000/(conversion
price), where the conversion price is the lower of (x) the average price of daily
closing prices (including closing bid or offered price) of Shares as reported by
the TSE for the 30 consecutive trading days (excluding trading days on which
no closing price, closing bid or offered price is reported) commencing on the
45th trading day prior to the Reset Date and (y) the conversion price effective
as of the Reset Date, provided that the conversion price shall not be less than
80% of the initial conversion price.

MIZUHO 117

CHAPTER 9

Second Series Class II August 1, 2004 to
Preferred Shares
July 31, 2006

Eighth Series ClassVIII Preferred Shares

October 1, 2004 to
January 31, 2009

¥2,000,000/(conversion price), where the conversion price is the higher of (x)the average price of daily closing prices (including closing bid or offered price)of Shares as reported by the TSE for the 30 consecutive trading days (excluding trading days on which no closing price, closing bid or offered price isreported) commencing on the 45th trading day prior to October 1, 2004 multiplied by 1.025 and (y) ¥540,000; to be reset on October 1 of each year
between 2005 and 2008 (each, a “Reset Date”) as ¥2,000,000/(conversion
price), where the conversion price is the lower of (x) the average price of daily
closing prices (including closing bid or offered price) of Shares as reported by
the TSE for the 30 consecutive trading days (excluding trading days on which
no closing price, closing bid or offered price is reported) commencing on the
45th trading day prior to the Reset Date and (y) the conversion price effective
as of the Reset Date, provided that the conversion price shall not be less than
70% of the initial conversion price.

Ninth Series Class IX September 1, 2003 to
Preferred Shares
August 31, 2009

¥1,250,000/(conversion price), where the conversion price is the higher of (x)the average price of daily closing prices (including closing bid or offered price)of Shares as reported by the TSE for the 30 consecutive trading days (excluding trading days on which no closing price, closing bid or offered price isreported) commencing on the 45th trading day prior to September 1, 2003
multiplied by 1.025 and (y) ¥331,000; to be reset on September 1 of eachyear between 2004 and 2008 using the same formula mutatis mutandis.

Tenth Series Class X
Preferred Shares¥565,000 to be reset on September 1 of each year between 2003 and 2008
(each, a “Reset Date”) as ¥1,250,000/(conversion price), where the conversion price is the higher of (x) the average price of daily closing prices (including closing bid or offered price) of Shares as reported by the TSE for the 30
consecutive trading days (excluding trading days on which no closing price,closing bid or offered price is reported) commencing on the 45th trading dayprior to the Reset Date multiplied by 1.025 and (y) ¥331,000.

July 1, 2003 toAugust 31, 2009

Notes: 1. If the date to determine the shareholders entitled to exercise their voting rights at a general meeting of the shareholders of MHHD (the “Record Date”) is prescribed, the period fromand including the date immediately following such Record Date to and including the date on which such general meeting is concluded shall be excluded.
2. Subject to adjustment, where allotment of new Shares for a subscription price below the “current market price” or “conversion price”, a stock split, allotment of securities convertible into Shares at a conversion ratio more favorable than the Preferred Shares, merger or amalgamation, or a capital decrease or consolidation occurs and in certain other circumstances.

Each Preferred Share which has not been converted as described above by the end of the relevant conversion period will be
converted into Shares on the day following the end of the conversion period on the following terms:
First Series Class I
Preferred Shares

August 1, 2005

¥3,000,000/(current market price), where the current market price is the average price of daily closing prices (including closing bid or offered price) of
Shares as reported by the TSE for the 30 consecutive trading days (excluding
trading days on which no closing price, closing bid or offered price is reported) commencing on the 45th trading day prior to August 1, 2005, provided
that the conversion ratio shall not be more than 4.000 (1).

Second Series Class II August 1, 2006
Preferred Shares¥2,000,000/(current market price), where the current market price is the average price of daily closing prices (including closing bid or offered price) of
Shares as reported by the TSE for the 30 consecutive trading days (excluding
trading days on which no closing price, closing bid or offered price is reported) commencing on the 45th trading day prior to August 1, 2006, provided
that the conversion ratio shall not be more than 3.137 (1).

118 MIZUHOAugust 1, 2008

¥2,000,000/(current market price), where the current market price is theaverage price of daily closing prices (including closing bid or offered price) of
Shares as reported by the TSE for the 30 consecutive trading days (excluding
trading days on which no closing price, closing bid or offered price is reported) commencing on the 45th trading day prior to August 1, 2008, provided
that the conversion ratio shall not be more than 3.137 (1).

Fifth Series Class V
Preferred Shares

February 1, 2002

¥3,000,000/(current market price), where the current market price is theaverage price of daily closing prices (including closing bid or offered price) of
Shares as reported by the TSE for the 30 consecutive trading days (excluding
trading days on which no closing price, closing bid or offered price is reported) commencing on the 45th trading day prior to February 1, 2002, provided that the conversion ratio shall not be more than the number obtained by
dividing ¥3,000,000 by the higher of ¥700,700 or the par value of Shares.

Seventh Series Class VII February 1, 2011
Preferred Shares¥2,000,000/(current market price), where the current market price is theaverage price of daily closing prices (including closing bid or offered price) of
Shares as reported by the TSE for the 30 consecutive trading days (excluding
trading days on which no closing price, closing bid or offered price is reported) commencing on the 45th trading day prior to February 1, 2011, provided that the conversion ratio shall not be more than the figure obtained by
dividing ¥2,000,000 by the higher of the amount equal to 60% of theamount obtained by dividing ¥2,000,000 by the initial conversion ratio or
the par value of Shares.

Eighth Series Class VIII February 1, 2009
Preferred Shares¥2,000,000/(current market price), where the current market price is theaverage price of daily closing prices (including closing bid or offered price) of
Shares as reported by the TSE for the 30 consecutive trading days (excluding
trading days on which no closing price, closing bid or offered price is reported) commencing on the 45th trading day prior to February 1, 2009, provided that the conversion ratio shall not be more than the figure obtained by
dividing ¥2,000,000 by the higher of the amount equal to 60% of theamount obtained by dividing ¥2,000,000 by the initial conversion ratio or
the par value of Shares.

Ninth Series Class IX September 1, 2009
Preferred Shares¥1,250,000/(current market price), where the current market price is theaverage price of daily closing prices (including closing bid or offered price) of
Shares as reported by the TSE for the 30 consecutive trading days (excluding
trading days on which no closing price, closing bid or offered price is reported) commencing on the 45th trading day prior to September 1, 2009, provided that the conversion ratio shall not be more than the number obtainedby dividing ¥1,250,000 by the higher of ¥331,000 or the par value of the
Shares.

Tenth Series Class X
Preferred Shares¥1,250,000/(current market price), where the current market price is theaverage price of daily closing prices (including closing bid or offered price) of
Shares as reported by the TSE for the 30 consecutive trading days (excluding
trading days on which no closing price, closing bid or offered price is reported) commencing on the 45th trading day prior to September 1, 2009, provided that the conversion ratio shall not be more than the number obtainedby dividing ¥1,250,000 by the higher of ¥331,000 or the par value of the
Shares.

September 1, 2009

* Subject to adjustment, where a stock split or consolidation of share capital occurs.

MIZUHO 119

CHAPTER 9

Third Series Class III
Preferred Shares26. INTEREST INCOME AND INTEREST EXPENSES
Interest Income and Interest Expenses for the fiscal year ended March 31, 2001 consisted of the following:

Interest Income:Loans and Bills Discounted
Securities
Call Loans and Bills Purchased
Due from Banks
Other Interest Income
Total
Interest Expenses:
Deposits
Debentures
Amortization of Debenture Charges
Call Money and Bills Sold
Commercial Paper
Borrowed Money
Bonds and Notes
Convertible Bonds
Other Interest Expenses

Millions of yen

Thousands of
U.S. dollars¥2,472,492
451,472
342,679
137,942
107,685$19,955,552
3,643,843
2,765,773
1,113,337
869,1363,512,272

28,347,641

817,917
207,599
14,047
478,666
35,390116,958
173,959
218

6,601,431
1,675,541
113,381
3,863,332
285,634
943,977
1,404,034
1,763

313,5442,530,626

Total

2,158,303

17,419,719

Net¥1,353,969$10,927,922

Millions of yen

Thousands of
U.S. dollars¥ 22,350
10,029119,467
4,662$ 180,389
80,945964,224
37,628¥156,508$1,263,186

Millions of yen

Thousands of
U.S. dollars¥ 22,754
198,171356,199$ 183,654
1,599,444
2,874,894¥577,125$4,657,992

27. TRADING INCOME
Trading Income for the fiscal year ended March 31, 2001 consisted of the following:

Trading Income:Net Gains on Trading Securities and Derivatives
Net Gains on Securities Held to Hedge Trading Transactions
Net Gains on Derivatives for Trading Transactions
Other Trading Income
Total

28. OTHER OPERATING INCOME
Other Operating Income for the fiscal year ended March 31, 2001 consisted of the following:

Gains on Foreign Exchange Transactions
Gains on Sales of Bonds
OthersTotal

120 MIZUHO

29. OTHER INCOME
Other Income for the fiscal year ended March 31, 2001 consisted of the following:

Gains on Sales of Stock and Other Securities
Gains on Money Held in Trust
Gains on Sales of Premises and Equipment
Gains on Minority Interests
Recovery on Written-off Claims
Gains on Securities Contributed to Employee Retirement Benefit Trust
Others
Total

Millions of yen

Thousands of
U.S. dollars¥ 706,968
6,175
3,386
18,036
16,471
85,681
252,809$5,705,963
49,84527,334
145,574
132,943
691,537
2,040,431¥1,089,530$8,793,627

Millions of yen

Thousands of
U.S. dollars

30. OTHER OPERATING EXPENSES
Other Operating Expenses for the fiscal year ended March 31, 2001 consisted of the following:

Amortization of Debenture Issuance Costs
Losses on Sales of Bonds
Losses on Redemption of Bonds
Losses on Devaluation of Bonds
Others
Total

¥

4,646
64,48967781
361,335$

37,504520,494547
6,309
2,916,344¥431,320$3,481,198

Millions of yen

Thousands of
U.S. dollars¥ 289,823
376,615
46,724
140,672
15,31940,150$ 2,339,174
3,039,670
377,115
1,135,372
123,642
324,053

185,816
435,039

1,499,731
3,511,211¥1,530,161$12,349,968

31. OTHER EXPENSES
Other Expenses for the fiscal year ended March 31, 2001 consisted of the following:

Provision of Reserve for Possible Loan Losses
Write-offs of Claims
Losses on Sales of Stocks and Other Securities
Losses on Devaluation of Stocks and Other Securities
Losses on Money Held in Trust
Losses on Dispositions of Premises and Equipment
Amortization of Unrecognized Net Obligation at Date of Initial Applicationof the Accounting Standard for Employee Retirement Benefits
Others
Total

Others included the following losses:
Thousands of
U.S. dollars¥52,472
43,421
34,40355,262$423,505
350,459
277,675
446,023

MIZUHO 121

CHAPTER 9

Provision of Reserve for Possible Losses on Loans Sold
Provision of Reserve for Possible Losses on Support of Specific Borrowers
Losses on Sales of Loans to CCPC
Other Losses on Sales of Loans

Millions of yen

32. CASH AND CASH EQUIVALENTS
Cash and Cash Equivalents at March 31, 2001 was reconciled to Cash and Due from Banks on the Consolidated Balance Sheetas follows:

Cash and Due from Banks
Less: Due from Banks except for due from Central Banks
Cash and Cash Equivalents

Millions of yen

Thousands of
U.S. dollars¥5,011,232(2,791,427)$40,445,783(22,529,677)¥2,219,805$17,916,106

33. LEASE TRANSACTIONS
Finance Leases
Lessees:
The Acquisition Cost Equivalents, Accumulated Depreciation Equivalents and Book Value equivalents relating to finance leasetransactions accounted for as operating leases at March 31, 2001, were summarized as follows:
Millions of yen

Thousands of U.S. dollars

Equipment

Others

Total

Equipment

Others

Total

Acquisition Cost Equivalents¥66,254¥1,905¥68,159$534,738$15,380$550,118

Accumulated Depreciation Equivalents

36,334

1,119

37,454

293,259

9,037

302,296

Book Value Equivalents¥29,919¥ 785¥30,705$241,479$ 6,343$247,822

Future lease payments subsequent to March 31, 2001 for finance leases accounted for as operating leases (including theinterest portion thereon) were summarized as follows:

Due in One Year or Less
Due after One Year
Total

Millions of yen

Thousands of
U.S. dollars¥ 9,755
35,755$ 78,739
288,585¥45,511$367,324

Lease expense, depreciation equivalents and interest expense equivalents relating to finance leases accounted for as operating leases amounted to ¥11,606 million ($93,675 thousand), ¥12,928 million ($104,350 thousand) and ¥1,347 million($10,872 thousand), respectively.
Notes: 1. The computing method for the amount of depreciation equivalents is as follows:
Depreciation equivalents are calculated by the declining-balance method, computed by multiplying the amounts by 10/9, which itself
is computed assuming that the useful life is the lease term and that the residual value at the end of the lease term is 10% of theacquisition cost.
2. The computing method for the amount of interest expenses equivalents is as follows:
The amounts are defined as the difference between total lease payments and acquisition equivalents, which are allocated over thelease term by the interest method.

Lessors:
The Acquisition Cost, Accumulated Depreciation and Book Value relating to finance lease transactions accounted for as operating leases at March 31, 2001, were summarized as follows:
Millions of yen

Thousands of U.S. dollars

Equipment

Others

Total

Equipment

Others

Total

Acquisition Cost
Accumulated Depreciation¥1,014,188
511,183¥2,0081,289¥1,016,196
512,473$8,185,542
4,125,778$16,207
10,408$8,201,749
4,136,186

Book Value¥ 503,004¥ 718¥ 503,723$4,059,764$ 5,799$4,065,563

122 MIZUHOFuture lease payments to be received subsequent to March 31, 2001 for finance leases accounted for as operating leases(including the interest portion thereon) were summarized as follows:

Due in One Year or Less
Due after One Year
Total

Millions of yen

Thousands of
U.S. dollars¥179,302
348,991$1,447,151
2,816,715¥528,293$4,263,866

Of the above future lease payments to be received, ¥210,034 million ($1,695,196 thousand) is pledged.
Lease income, depreciation and interest income equivalents relating to finance leases accounted for as operating leases
amounted to ¥217,609 million ($1,756,332 thousand), ¥190,604 million ($1,538,372 thousand) and ¥15,880 million($128,172 thousand), respectively.
Note: The computing method for the amount of interest income equivalents is defined as the difference between total lease payments and acquisition cost, which is allocated over the leaseterm by the interest method.

Operating Leases
The future lease payments subsequent to March 31, 2001 for operating lease transactions were summarized as follows:
Lessees:Due in One Year or Less
Due after One Year
Total

Millions of yen

Thousands of
U.S. dollars¥ 14,280
88,793$115,258
716,658¥103,074$831,916

Millions of yen

Thousands of
U.S. dollars¥3,451
3,797$27,855
30,646¥7,248$58,501

Lessors:

Due in One Year or Less
Due after One YearTotal

34. DEFERRED TAX ASSETS AND LIABILITIESDeferred Tax Assets and Liabilities at March 31, 2001 consisted of the following:Thousands of
U.S. dollars

Deferred Tax Assets:
Reserve for Possible Losses on Loans
Tax Losses Carried Forward
Securities
Reserve for Contingent Losses related to Loans Sold
Others¥1,035,529
372,919
223,276
75,454326,239$ 8,357,787
3,009,847
1,802,073
608,998
2,633,086

Deferred Tax Assets Subtotal:
Valuation Allowance

2,033,420(311,511)

16,411,791(2,514,214)¥1,721,909$13,897,577

Deferred Tax Liabilities:
Prepaid Pension Cost
Others¥(35,434)(33,967)$(285,993)(274,150)

Total

¥

(69,401)$(560,143)

Net Deferred Tax Assets¥1,652,508

Net$13,337,434

MHHD and domestic subsidiaries are subject to a number of different income taxes.
The statutory tax rate applicable to MHHD for fiscal 2000 is 42.05%. The difference between the effective tax rate applicable
to MHHD and its subsidiaries and the statutory tax rate applicable to MHHD is immaterial.

MIZUHO 123

CHAPTER 9

Millions of yen

35. SEGMENT INFORMATION(a) Segment Information by Type of Business
MHFG is engaged in securities, trust, leasing and other activities as well as banking business. Such segment information,
however, has not been presented, as the percentages of those activities are insignificant.
(b) Segment Information by Geographic Area
Segment information by geographic area at March 31, 2001 and for the fiscal year ended March 31, 2001 was as follows:
Millions of yen

Ordinary Income
from Outside
Customers

Inter-segment
Ordinary
IncomeOrdinary
IncomeOrdinary
Expenses

Ordinary
ProfitTotal Assets

Japan
AmericasAsia/Oceania excluding Japan
Europe¥4,014,636
1,136,941
269,768
335,629¥162,040
76,45569,28135,201¥4,176,676
1,213,396
339,049
370,831¥3,735,873
1,112,686
286,742353,817¥440,803
100,71052,307
17,013¥145,299,161
16,435,655
7,902,182
7,205,854

Total
Elimination and General Corporate Assets

5,756,975—

342,978(342,978)6,099,954(342,978)5,489,120(307,002)

610,833(35,976)

176,842,853(13,387,373)¥5,756,975¥¥5,756,975¥5,182,118¥574,857¥163,455,480

Geographic Area

Consolidated Results—

Thousands of U.S. dollars

Geographic Area

Ordinary Income
from Outside
Customers

Inter-segment
Ordinary
IncomeOrdinary
IncomeOrdinary
Expenses

Ordinary
ProfitTotal Assets

Japan
AmericasAsia/Oceania excluding Japan
Europe$32,402,230
9,176,279
2,177,309
2,708,877$1,307,831
617,078
559,169
284,114$33,710,061
9,793,357
2,736,478
2,992,991$30,152,328
8,980,523
2,314,307
2,855,673$3,557,733
812,834
422,171
137,318$1,172,713,166
132,652,587
63,778,709
58,158,634

Total
Elimination and General Corporate Assets

46,464,695—

2,768,192(2,768,192)

49,232,887(2,768,192)

44,302,831(2,477,824)

4,930,056(290,368)

1,427,303,096(108,049,825)$46,464,695$$46,464,695$41,825,007$4,639,688$1,319,253,271

Consolidated Results—

Notes: 1. Geographic analyses are presented based on geographic contiguity, similarities in economic activities, and relation of business operations.
2. Ordinary Income represents Total Income less certain special income and Ordinary Expenses represent Total Expenses less certain
special expenses.
3. Ordinary Profit represents Ordinary Income less Ordinary Expenses.
4. Americas includes the United States of America and Canada. Asia/Oceania includes Hong Kong and the Republic of Singapore.
Europe includes the United Kingdom.

(c) Ordinary Income of Overseas Entities
Ordinary Income from Overseas Entities for the fiscal year ended March 31, 2001 was analyzed as follows:

Ordinary Income from Overseas Entities
Total Ordinary Income
Ordinary Income from Overseas Entities’ Ratio

Millions of yen

Thousands of
U.S. dollars¥1,742,339
5,756,975$14,062,465
46,464,695

30.26%

30.26%

Notes: 1. Ordinary Income from Overseas Entities represents Ordinary Income recorded by overseas branches of DKB, Fuji Bank, IBJ and otheroverseas subsidiaries excluding Inter-segment Ordinary Income. Ordinary Income from international operations is presented in lieu ofSales as is the case for non-financial companies.
2. Segment information on Ordinary Income from Overseas Entities is not presented as no such information is compiled.

124 MIZUHO

36. SUBSEQUENT EVENTSThe Sale of Shares of The CIT Group, Inc.—An Affiliated Company
DKB entered into a contract for the sale of shares of The CIT Group, Inc., an affiliated company, with TYCO ACQUISITION
CORP. XIX (NV) on March 12, 2001, and completed the contract on June 1, 2001. Details of the contract are as follows:(1) Shares soldOrdinary shares of The CIT Group, Inc.
(2) Number of shares 71 million shares(3) Gain on sales
US$858 million(4) Sale proceeds
US$2,486 million
37. APPROPRIATION OF RETAINED EARNINGS
The following Appropriation of Retained Earnings was approved at the shareholders’ meeting held on June 26, 2001.
Millions of yen

Cash Dividends:
First Series Class I Preferred Shares
Second Series Class II Preferred Shares
Third Series Class III Preferred Shares
Fourth Series Class IV Preferred Shares
Fifth Series Class V Preferred Shares
Sixth Series Class VI Preferred Shares
Seventh Series Class VII Preferred Shares
Eighth Series Class VIII Preferred Shares
Ninth Series Class IX Preferred Shares
Tenth Series Class X Preferred Shares
Common Shares

Thousands of
U.S. dollars¥11,250 per Share¥ 4,100 per Share¥ 7,000 per Share¥23,800 per Share¥ 3,750 per Share¥21,000 per Share¥ 5,500 per Share¥ 4,000 per Share¥ 8,750 per Share¥ 2,690 per Share

¥

371
410
700
3,570
196
3,150
687
500
1,225
376

$

2,996
3,309
5,650
28,814
1,586
25,424
5,549
4,035
9,887
3,039

¥ 3,500 per Share

32,220260,052

Note: In accordance with the Commercial Code of Japan, MHHD is required to appropriate as a legal reserve an amount equivalent to at least
10% of the amount of cash disbursements until such reserve equals 25% of its common stock. The legal reserve is not available for dividends but may be used to reduce a deficit by approval at the shareholders’ meeting or may be capitalized by resolution of the Board of
Directors.

38. MARKET VALUE OF SECURITIES AND MONEY HELD IN TRUSTThe following tables contain information relating to Securities, Trading Assets (trading securities, negotiable certificates ofdeposit and commercial paper), Cash and Due from Banks (negotiable certificates of deposit) and Other Debt Purchased(commercial paper, etc.) at March 31, 2001.
Millions of yen

Gross unrealized
Cost¥ 7,921,803—
25,932,871
7,912,749
12,363,591
11,641,796
261,816
459,979
5,656,530
386,918
5,449

Gains

¥

—
—
864,467
765,889
45,01225,457
8,107
11,44653,565—196

LossesMarket value——
1,140,119
1,073,119
12,688
11,843
119725
54,310¥ 7,921,803—
25,657,219
7,605,519
12,395,915
11,655,409
269,804
470,700
5,655,785——

386,918
5,645¥

MIZUHO 125

CHAPTER 9

Trading Securities*1
Held-to-maturity Securities
Other Securities*2, 3, 4, 5
StocksBonds:
National Bonds
Local Government Bonds
Corporate Bonds
OthersMoney Held in Trust*3
For investment purpose
For other than investment purposes*6

Thousands of U.S. dollars

Gross unrealized
Cost

Trading Securities*1
Held-to-maturity Securities
Other Securities*2, 3, 4, 5
StocksBonds:
National Bonds
Local Government Bonds
Corporate Bonds
OthersMoney Held in Trust*3
For investment purpose
For other than investment purposes*6$ 63,937,072—
209,304,855
63,864,003
99,786,856
93,961,228
2,113,125
3,712,503
45,653,996
3,122,829
43,982

Gains

$

—
—
6,977,137
6,181,512
363,294
205,468
65,43892,388432,331

LossesMarket value——
9,201,930
8,661,178
102,408
95,590964
5,854
438,344$ 63,937,072—
207,080,062
61,384,337
100,047,742
94,071,106
2,177,599
3,799,037
45,647,983——

3,122,829
45,565$—
1,583*1 The cost of Trading Securities as of March 31, 2001 was ¥7,921,803 million ($63,937,072 thousand) with unrealized gains of ¥6,489 million ($52,373 thousand) charged to income.
*2 Other Securities included unlisted stock (excluding OTC stock) of ¥337,990 million ($2,727,933 thousand) and non-public offering bonds of ¥880,731 million ($7,108,410 thousand) as ofMarch 31, 2001.
*3 Other Securities and securities held in Money Held in Trust other than investment purposes are valued at cost as of March 31, 2001 in accordance with the accounting standard for financial
instruments. If those securities were valued at market price, unrealized losses of ¥162,354 million ($1,310,370 thousand), net of tax, minority interests and investments in affiliates would
be stated as a component of shareholders' equity and deferred tax assets of ¥105,613 million ($852,409 thousand), minority interests of ¥3,675 million ($29,667 thousand) and investments in affiliates of ¥3,811 million ($30,765 thousand) would be recorded in Deferred Tax Assets, Minority Interests and Securities, respectively.
*4 The cost of Other Securities, classified by contractual maturity range as of March 31, 2001, consisted of the following:
Millions of yen

Securities:
National Bonds
Local Government Bonds
Corporate Bonds
Others
Total

Within 1 year

1–5 years

5–10 years

Over
10 years¥7,213,291
7,085,545
24,539103,206¥3,371,463
2,581,204
97,345692,913¥2,623,373
1,975,045
343,394
304,934¥ 15,698—
11,096
4,602

756,858

3,167,870

1,208,409

781,854¥7,970,150¥6,539,334¥3,831,782¥797,552

Thousands of U.S. dollars

Securities:
National Bonds
Local Government Bonds
Corporate Bonds
Others
Total

Within 1 year

1–5 years

5–10 years

Over
10 years$58,218,657
57,187,618
198,059
832,980$27,211,170
20,832,969
785,681
5,592,520$21,173,316
15,940,641
2,771,542
2,461,133$ 126,701—
89,557
37,144

6,108,624

25,567,965

9,753,100

6,310,368$64,327,281$52,779,135$30,926,416$6,437,069*5 Other Securities sold during the fiscal year are as follows:
Fiscal year ended March 31, 2001

Other Securities

Millions of yen

Thousands of U.S. dollars

Proceeds
from sales

Total amountof gains
on salesTotal amountof losses
on salesProceeds
from sales

Total amountof gains
on salesTotal amountof losses
on sales¥58,047,079¥955,377¥(62,658)$468,499,432$7,710,876$(505,718)*6 The cost of Money Held in Trust as of March 31, 2001 was ¥386,918 million ($3,122,829 thousand) with unrealized losses of ¥13,645 million ($110,132 thousand) charged to income.

126 MIZUHO

39. DERIVATIVES INFORMATION(A) RISK CONTROL OF DERIVATIVES(1) Details of Derivative Financial Products
MHFG transacts primarily in the following derivative financial products:(i) Interest rate-related products
Swaps, interest rate guarantees (FRA options), futures, futures options, and options(ii) Currency-related products
Futures, futures options, options, swaps, and forward trading(iii)Bond-related products
Futures, futures options, and over-the-counter options(iv) Stock-related products
Index futures, index futures options, and over-the-counter options(v) Others products
Credit derivatives, futures, options, weather derivatives, etc.
(2) Purposes for Using Derivative Financial Products
MHFG uses derivative financial products in response to the diverse needs of customers, for risk control related to assets andliabilities of MHFG as a part of asset and liability management (“ALM”), and for trading purposes.
As risk control related to assets and liabilities, MHFG primarily utilizes macro-hedges for the total management of interest
risk related to numerous financial assets and liabilities, such as loans and deposits, by using interest swaps, etc., as hedging
methods. MHFG applies hedge accounting to the majority of these products, treating them as deferred hedges. The effectiveness of hedges is assessed by periodically checking whether the total net risk amount of derivative financial products falls
within the risk limit as set out in the risk management policy, and whether interest risk exposures from hedged items havebeen reduced.
(3) Trading Guidelines
In accordance with the purposes of using derivative financial products, MHFG deals in derivative financial products based on
the following guidelines:(i) In response to the diverse needs of customers
Having carefully ascertained the customer’s needs and selected the products best suited to those needs, MHFG engages infair sales activities according to the Law Concerning the Sale of Financial Products. With regard to sales activities, MHFG
carefully explains to the customer the details of the products, the inherent risks, and ensures the customer understands therisk profile of the products.
(ii) Risk control of assets and liabilities of MHFG (ALM: Asset and Liability Management)
MHFG periodically convenes the ALM & Market Risk Committee and lays down trading guidelines for the purposes of
securing stable income while appropriately controlling risk.
(iii)Trading activities
MHFG engages in trading activities to maximize income under reasonable risk limits and strict management.

MIZUHO 127

CHAPTER 9(4) Details of Trading-related Risk
The following are the main risks, inherent in derivatives trading.
(i) Credit risk:
The risk of incurring a loss because the counter-parties are unable to fulfill their obligations due to bankruptcy or other reasons.
(ii) Market risk:
The risk of incurring a loss because the value of the derivative products decrease caused by fluctuations in market risk factors
such as interest rates, foreign exchange rates and bond and stock prices.
(iii)Market liquidity risk:
The risk of incurring a loss because of the inability to execute transactions in the market because of market confusion, or
arising from transactions at prices that are markedly less favorable than normal.

(5) Derivative Trading Risk Control Structure(i) Credit risk management structure
The Board of Directors determines important items concerning credit risk in accordance with the Credit Risk Management
Policy. MHFG has established the Portfolio Management Committee as one of its business policy committees. This committee conducts overall deliberation on and adjustment of MHFG’s credit portfolio management. Under the jurisdiction of the
Chief Risk Officer, the Risk Management Department and the Credit Risk Management Department jointly formulate andimplement plans for basic matters related to credit risk management.
The amount of credit risk on derivatives trading (credit risk equivalent) calculated into the BIS capital adequacy ratio(international capital adequacy standards) is ¥4,337,831 million.
(ii) Market risk management structure
The Market Risk Management Policy is determined by the Board of Directors, and MHFG has established the Risk Management Department. This department is responsible for monitoring market risk, reports and analyses, proposals, setting limits,and for formulating and implementing plans relating to market risk management as a specialized risk management section.
MHFG and its consolidated subsidiaries have established a solid management structure for market risk including comprehensive management (ALM) of interest risk and other types of risk. Through this structure, they comprehensively ascertain
and manage risk, managing assets to secure stable income while appropriately controlling risk.
MHFG has established the ALM & Market Risk Committee as one of the business policy committees charged with conducting overall deliberation on and adjustment of market risk management. The committee decides the entire group’smonthly funding and investment policies, discusses and coordinates matters relating to ALM policies, risk planning andmarket risk management, and responds to emergencies such as sudden market changes.
On the reporting side, the Risk Management Department receives the necessary data from the five core subsidiaries, aswell as reports on risk profile and compliance with risk limits, both on a regular basis and as deemed necessary. Based onthese reports, MHHD obtains a solid grasp of the market risk management situation. Reports on the status of market risk
and compliance with risk limits are submitted to the CEO on a daily basis, and to the Board of Directors and the Executive
Management Committee, both on a regular basis and as deemed necessary.
Value at Risk
Value at Risk (VAR) related to MHFG’s trading activities is as follows:(a) The standards used for calculating VAR• Confidence interval: one-tailed 99.0% (two-tailed 98%)
• Holding period: 1 day• Historical observation period: 1 year (265 business days, 264 return)(b) VAR results during the period covered• Maximum: ¥13.4 billion• Average: ¥ 9.8 billion
The period covered is from October 2, 2000 to March 30, 2001.
Note: Value at Risk (VAR) is a method of measuring market risk. It is defined as the maximum possible loss that could be incurred on our portfolio as a result of market movements withina certain period (holding period) and degree of probability (confidence interval). The actual amount of the VAR may vary according to the length of the holding periods and theconfidence interval, as well as the models used for measuring the volatility of market risk factors.

Credit risk equivalent amountCredit risk equivalent amounts at March 31, 2001 consisted of the following:

Interest Swaps
Currency Swaps
Foreign Exchange Forward Transactions
Interest Options (Buy)Currency Options (Buy)
Other Financial Derivative Products
Effect of Reduction in the Credit Risk Equivalent Amount due toLump-sum Settlement Netting Contracts
Total

Millions of yen

Thousands of
U.S. dollars¥7,358,096
1,137,870
2,227,921
71,456
221,859
119,521$59,387,384
9,183,784
17,981,612
576,7311,790,633
964,665(6,798,896)(54,874,063)¥4,337,831$35,010,746

Note: The above is the credit risk equivalent amount based on the consolidated capital adequacy ratio (a uniform international standard).

128 MIZUHO(B) MARKET VALUE OF DERIVATIVES
The market value of derivatives at March 31, 2001 was as follows:
In the following tables:(i) Contract value represents notional amounts for swap transactions and contract amounts for other transactions.
(ii) Market value of listed contracts is based on the closing prices of the Tokyo Stock Exchange and the Tokyo International
Financial Futures Exchange and others. Market value of over-the-counter contracts is based on the discounted value of
future cash flows or option pricing models.
(1) Interest Rate-Related Transactions
At March 31, 2001

Millions of yen

Contract value
Total

Over one year

Marketvalue

Unrealized
gain (loss)

Listed:Futures:
Sold
BoughtOptions:
Sold¥ 31,653,308
35,499,788¥ 10,386,242
12,938,286¥ (385,162)
387,515¥ (385,162)
387,5158,224,799

421,994

7,307(3,255)

Bought6,486,581

578,949

10,165

5,682

27,079,298
22,619,539

6,220,724
5,657,425

29,800(28,396)

29,800(28,396)259,626,266
262,599,202
10,375,720
2,626,411

145,525,033
145,215,353
5,251,600
1,995,516

6,021,782(6,164,663)
1,633
3,125

6,021,782(6,164,663)
1,633
3,125

8,824,099
7,087,622

5,742,276
4,739,979

11,40363,914(9,753)45,046¥000,000,00 /¥000,000,00 /¥0,000,00 /Type of Transactions

Over-the-Counter:
FRAs:
Sold
BoughtSwaps:
Receive Fixed/Pay Float
Receive Float/Pay Fixed
Receive Float/Pay Float
Receive Fixed/Pay Fixed
Options:
Sold
BoughtTotal¥(96,645)

CHAPTER 9

MIZUHO 129

At March 31, 2001

Thousands of U.S. dollars

Contract valueOver one year

Marketvalue

Unrealized
gain (loss)

83,827,624
104,425,233$ (3,108,658)
3,127,647$ (3,108,658)
3,127,647

66,382,562
52,353,359

3,405,925
4,672,719

58,97882,046(26,279)
45,863

218,557,693
182,562,866

50,207,625
45,661,222

240,524(229,190)

240,524(229,190)

2,095,450,093
2,119,444,736
83,742,702
21,197,836

1,174,536,185
1,172,036,753
42,385,802
16,105,863

48,601,955(49,755,153)
13,18425,22548,601,955(49,755,153)
13,18425,225

71,219,528
57,204,376

46,346,058
38,256,492

92,041
515,855(78,718)
363,571$2,095,450,09 /$1,172,036,75 /$48,601,95 /Type of Transactions

Total

Listed:Futures:
Sold
BoughtOptions:
Sold
Bought$ 255,474,644
286,519,680

Over-the-Counter:
FRAs:
Sold
BoughtSwaps:
Receive Fixed/Pay Float
Receive Float/Pay Fixed
Receive Float/Pay Float
Receive Fixed/Pay Fixed
Options:
Sold
BoughtTotal$$(780,029)

Note: The above transactions are marked to market and unrealized gains/losses are charged to the consolidated statement of income.
Derivative transactions being used for hedge accounting are excluded from the above table.

(2) Currency-Related Transactions
At March 31, 2001

Millions of yen

Contract value
Type of Transactions

Total

Over
one yearMarketvalue

Unrealized
gain (loss)

Over-the-Counter:
Currency Swaps¥17,372,314¥12,285,917¥225,082¥101,465

At March 31, 2001

Thousands of U.S. dollars

Contract value
Type of Transactions

Total

Over
one yearMarketvalue

Unrealized
gain (loss)

Over-the-Counter:
Currency Swaps$140,212,389$99,159,945$1,816,650$818,928

Notes: 1. The above transactions are marked to market and unrealized gains/losses are charged to the Consolidated Statement of Income.
Derivative transactions being used for hedge accounting and the following transactions described in note 2 are excluded from theabove table.
2. Currency swap transactions which are accrued in accordance with “Tentative Auditing Treatment for the continuing adoption of’New Foreign Exchange Accouting Standards’ in banking industries” issued by JICPA dated April 10, 2000 are excluded from theabove tables.
Currency swap transactions accounted for under the accrual method are as follows:
At March 31, 2001

Type of Transactions

Currency Swaps

Millions of yen

Thousands of U.S. dollars

Contract
value

Marketvalue

Unrealized
gain (loss)

Contract
value

Marketvalue

Unrealized
gain (loss)¥1,576,084¥10,348¥(5,114)$12,720,616$83,524$(41,283)

3. The following currency forwards, currency options and other transactions are excluded from the above table:* Transactions which are marked to market and of which unrealized gain or loss is charged to the Consolidated Statement of Income.
* Transactions which are for financial assets and liabilities denominated in foreign currencies and recognized on the Consolidated
Balance Sheet.
* Transactions denominated in foreign currencies which are eliminated in the consolidation process.

130 MIZUHOCurrency-related derivatives which are marked to market are as follows:
At March 31, 2001

Thousands of
U.S. dollars

Millions of yen

Type of Transactions

Contract value

Listed:Futures:
Sold
BoughtOver-the-Counter:
Forwards:
Sold
BoughtOptions:
Sold
Bought

¥

1,469
209

$

11,861
1,693

24,321,306
28,970,975

196,297,869
233,825,469

4,608,183
4,571,896

37,192,767
36,899,888(3) Stock-Related Transactions
At March 31, 2001

Millions of yen

Thousands of U.S. dollars

Contract valueMarketvalue

Unrealized
gain (loss)

Total

—
—

¥1,002(224)¥1,002(224)$559,635
128,990

35,494
12,046

—
—

128
293

(12)
35

6,182
15,555

1,300
4,673

372
986

¥69,33 /¥9,33 /

¥6,33 /

Type of Transactions

Listed:Index Futures:
Sold
BoughtIndex Options:
Sold
BoughtOver-the-Counter:
Options:
Sold
BoughtTotal

Contract value

Total¥69,338
15,981Over
one year¥Over
one yearMarketvalue

Unrealized
gain (loss)$——$8,091(1,811)$ 8,091(1,811)

286,473
97,224

—
—

1,033
2,370

(100)
284

(102)
717

49,900125,551

10,492
37,718

3,006
7,963

(825)
5,788

¥1,415$ 69,33 /$69,33 /$69,3 /

$11,427

Notes: 1. The above transactions are marked to market and unrealized gains/losses are charged to the Consolidated Statement of Income.
2. Derivative transactions being used for hedge accounting are excluded from the above table.

(4) Bond-Related Transactions
At March 31, 2001

Millions of yen

Thousands of U.S. dollars

Contract value
Type of Transactions¥621,019
441,976
503,069
440,881Over
one yearMarketvalue

Unrealized
gain (loss)

Total

¥

—
—

¥ (876)944¥ (876)944$5,012,266
3,567,201

—
—

204
898

402
415

4,060,289
3,558,365

Over
one year$Marketvalue

Unrealized
gain (loss)——$(7,077)
7,622$ (7,077)
7,622

—
—

1,653
7,253

3,250
3,351

86,079

—

217

(18)

694,751

—

1,759

(147)

Bought

89,530

3,315

702

590

722,60226,757

5,671

4,763

Total

¥621,01 /¥3,31 /

¥601 /¥1,457$5,012,26 /$69,33 /$(7,07 /$11,762

Notes: 1. The above transactions are marked to market and unrealized gains/losses are charged to the Consolidated Statement of Income.
2. Derivative transactions being used for hedge accounting are excluded from the above table.

MIZUHO 131

CHAPTER 9

Listed:Index Futures:
Sold
BoughtFutures Options:
Sold
BoughtOver-the-Counter:
Options:
Sold

Total

Contract value

(5) Commodity-Related Transactions
At March 31, 2001

Millions of yen

Thousands of U.S. dollars

Contract value
Total

Over
one yearMarketvalue

Unrealized
gain (loss)

—
—

¥ —
—

¥ —
—

¥ —
—

—
—
—

—
—
—

—
—
—

—
—
—

—
—
—

5,031
5,031

496
496

330
330

101
(82)

¥5,03 /

¥49 /

¥33 /

¥ 18

Type of Transactions

Listed:Futures:
Sold
BoughtOver-the-Counter:
Forwards:
Sold
BoughtSwaps:
Options:
Sold
Bought¥Total

Contract valueMarketvalue

Unrealized
gain (loss)

—
—

$ —
—

—
—
—

—
—
—

—
—
—

40,60640,606

4,005
4,005

2,666
2,666

817
(669)

$69,33 /$6,33 /

$9,33 /

$148

Total

$

—
—

Over
one year

$

—
—

$

Notes: 1. The above transactions are marked to market and unrealized gains/losses are charged to the Consolidated Statement of Income.
2. Derivative transactions being used for hedge accounting are excluded from the above table.
3. Commodities are oil and copper.

(6) Credit Derivatives Transactions
At March 31, 2001

Millions of yen

Thousands of U.S. dollars

Contract value
Total

Over
one yearMarketvalue

Unrealized
gain (loss)

Total

Over
one yearMarketvalue

Unrealized
gain (loss)¥ 64,101
124,363¥ 60,021
113,189¥ (504)
1,016¥ (528)1,019$ 517,362
1,003,743$484,434
913,553$(4,071)
8,207$(4,265)
8,225¥000,00 /¥000,00 /¥0,00 /

¥ 490

$0,000,00 /$000,00 /$(0,00 /$ 3,960

Type of Transactions

Over-the-Counter:
Credit Default Swaps:
Sold
BoughtTotal

Contract value

Notes: 1. The above transactions are marked to market and unrealized gains/losses are charged to the Consolidated Statement of Income.
2. Derivative transactions being used for hedge accounting are excluded from the above table.

(7) Weather Derivatives Transactions
At March 31, 2001

Millions of yen

Thousands of U.S. dollars

Contract value

Contract value

Type of Transactions

Total

Over
one yearMarketvalue

Unrealized
gain (loss)

Total

Over
one yearMarketvalue

Unrealized
gain (loss)

Over-the-Counter:
Weather Derivatives (Options):
Sold
Bought

¥595
595

¥—
—

¥38
31

¥33
(7)

$4,805
4,805

$—
—

$314
258

$274
(58)

¥00 /

¥0 /

¥0 /

¥26

$0,00 /

$ /

$00 /

$216

Total

Notes: 1. The above transactions are marked to market and unrealized gains/losses are charged to the Consolidated Statement of Income.
2. Derivative transactions being used for hedge accounting are excluded from the above table.

132 MIZUHONon-Consolidated Financial Statementsof Mizuho Holdings and the Five Core Subsidiaries

Chapter 10
Contents
Mizuho Holdings:
Non-Consolidated Balance Sheet

134

Non-Consolidated Statement of Income

135

Dai-Ichi Kangyo Bank:
Non-Consolidated Balance Sheets

136

Non-Consolidated Statements of Income

137

Fuji Bank:
Non-Consolidated Balance Sheets

138

Non-Consolidated Statements of Income

139

Industrial Bank of Japan:
140

Non-Consolidated Statements of Income

141

Mizuho Securities:
Non-Consolidated Balance Sheet

142

Non-Consolidated Statement of Income

143

Mizuho Trust & Banking:
Non-Consolidated Balance Sheet

144

Non-Consolidated Statement of Income

145

MIZUHO 133

CHAPTER 10

Non-Consolidated Balance SheetsNon-Consolidated Balance Sheet
Mizuho Holdings, Inc.
March 31, 2001

ASSETS
Current Assets
Cash and Due from Banks
Other Current Assets
Non-current Assets
Tangible Fixed Assets
Intangible Fixed Assets
Investments in Subsidiaries (Stocks)
Investments in Subsidiaries (Bonds)
Long-term Loans to Subsidiary
Other Investments
Deferred Charges
Total Assets
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Current Liabilities
Accrued Expenses
Accrued Taxes
Other Current Liabilities
Non-current Liabilities
Bonds
Total Liabilities

Millions of yen

Thousands of
U.S. dollars

March 31, 2001

March 31, 2001¥

47,27828,244
19,0337,362,267
2,344
876
6,507,049
650,000
200,000
1,996
3,086

$

¥7,412,632$59,827,541

¥

$

1,225
279
766
178
850,000
850,000

381,587
227,966
153,62259,421,043
18,924
7,074
52,518,560
5,246,166
1,614,205
16,11424,910

9,889
2,258
6,187
1,444
6,860,371
6,860,371

851,225

6,870,261

2,572,000
3,891,642
97,76420,758,676
31,409,541
789,062

Total Shareholders’ Equity

6,561,407

52,957,280

Total Liabilities and Shareholders’ Equity¥7,412,632$59,827,541

Shareholders’ Equity
Common Stock and Preferred Stock
Capital Surplus
Retained Earnings

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥123.90=US$1.00, the foreign exchange rate on March 31, 2001, has been used for translation.

134 MIZUHONon-Consolidated Statement of Income
Mizuho Holdings, Inc.
For the fiscal year ended March 31, 2001

Millions of yen

Thousands of
U.S. dollars

Fiscal 2000

Fiscal 2000

¥114,020
95,957
12,3384,439
1,283$920,262
774,479
99,58735,833
10,363Operating Expenses
Interest Expenses on Bonds
General and Administrative Expenses

13,961
5,723
8,237

112,682
46,196
66,486

Operating Profit

100,059

807,581

54
820

442
6,624

99,293801,399

1,678
(149)

13,545(1,208)¥ 97,764$789,062

Operating Income
Dividends on Investments in Subsidiaries (Stocks)
Fees and Commissions Received from Subsidiaries
Interest Income on Investments in Subsidiaries (Bonds)
Interest Income on Loans to SubsidiaryNon-operating Income
Non-operating Expenses
Income before Income Taxes
Income Tax Expenses:
Current
Deferred
Net Income
Notes: 1. Fiscal 2000 represents the fiscal year from September 29, 2000 to March 31, 2001.
2. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
3. The rate of ¥123.90=US$1.00, the foreign exchange rate on March 31, 2001, has been used for translation.

CHAPTER 10

MIZUHO 135

Non-Consolidated Balance Sheets
The Dai-Ichi Kangyo Bank, Limited
March 31, 2001 and 2000

Thousands of
U.S. dollars

Millions of yen

March 31, 2001

March 31, 2000

March 31, 2001

¥ 1,820,781
197,108
1,538
3,947,367
328,785
7,151,958
31,550,945
315,527
3,009,652
765,632
522,539
2,811,452(603,214)(1,787)¥ 2,351,281
101,8102,801
2,421,254
173,770
7,054,022
32,452,559
288,499
1,360,492
779,568
545,374
2,679,760(795,606)(111,566)$ 14,695,575
1,590,871
12,41731,859,301
2,653,640
57,723,635
254,648,470
2,546,634
24,290,981
6,179,443
4,217,428
22,691,306(4,868,559)(14,431)¥51,818,289¥49,304,022$418,226,711¥33,883,192
4,087,584
573,000
1,125,595
1,836,786
166,538
4,519,755—
113,4856
202,950
2,811,452¥35,056,563
2,348,134
98,500632,276
1,876,649
135,335
3,609,098
38,763
142,4836
212,408
2,679,760$273,472,094
32,990,995
4,624,697
9,084,709
14,824,753
1,344,133
36,479,060—
915,94152
1,638,022
22,691,306

49,320,347

46,829,980

398,065,762

Shareholders’ Equity
Common Stock and Preferred Stock
Capital Surplus
Revaluation Reserve for Land, net of Taxes
Retained Earnings:
Appropriated Reserve
Unappropriated Retained Earnings

858,784
747,181319,176572,799
465,597
107,201

858,784
747,181327,247
540,828445,328
95,4996,931,274
6,030,519
2,576,081
4,623,075
3,757,850
865,225

Total Shareholders’ Equity

2,497,941

2,474,042

20,160,949¥51,818,289¥49,304,022$418,226,711

ASSETSCash and Due from Banks
Call Loans and Bills Purchased
Other Debt Purchased
Trading Assets
Money Held in Trust
Securities
Loans and Bills Discounted
Foreign Exchange Assets
Other Assets
Premises and Equipment
Deferred Tax Assets
Customers’ Liabilities for Acceptances and Guarantees
Reserve for Possible Losses on Loans
Reserve for Possible Losses on Securities
Total Assets
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Deposits
Call Money and Bills Sold
Commercial Paper
Trading Liabilities
Borrowed Money
Foreign Exchange Liabilities
Other Liabilities
Reserve for Retirement Allowances
Reserve for Possible Losses on Loans Sold
Other Reserves
Deferred Tax Liabilities on Revaluation Reserve for Land
Acceptances and Guarantees
Total Liabilities

Total Liabilities and Shareholders’ Equity

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥123.90=US$1.00, the foreign exchange rate on March 31, 2001, has been used for translation.

136 MIZUHONon-Consolidated Statements of Income
The Dai-Ichi Kangyo Bank, Limited
For the fiscal years ended March 31, 2001 and 2000

Thousands of
U.S. dollars

Millions of yen

Fiscal 2000

Fiscal 1999

Fiscal 2000

IncomeInterest Income
Loans and Bills Discounted
Securities
Fee and Commissions Income
Trading Income
Other Operating Income
Other Income¥ 949,887
759,361
123,412120,865
42,893
93,233285,954¥1,058,529
737,640
114,490
110,317
20,729102,159
582,764$ 7,666,568
6,128,822
996,069
975,512346,198
752,486
2,307,948

Total Income

1,492,835

1,874,500

12,048,712

422,349
231,037
32,890—49,498374,311503,504

466,549
213,027
33,3804,378
47,657400,127
715,2813,408,794
1,864,710
265,457—
399,507
3,021,074
4,063,794

Total Expenses

1,382,553

1,667,374

11,158,626

Income before Income Taxes
Income Tax Expenses:
Current
Deferred

110,281

207,126

890,086

21,717
16,021

39,52578,702

175,286
129,314

Expenses
Interest Expenses
Deposits
Fee and Commissions Expenses
Trading Expenses
Other Operating Expenses
General and Administrative Expenses
Other Expenses

Net Income¥

72,541¥

88,897$585,486

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥123.90=US$1.00, the foreign exchange rate on March 31, 2001, has been used for translation.
3. From fiscal 2000, the Accounting Standard for Employee Retirement Benefits has been adopted. As a result, Income before Income Taxes decreased by¥15,346 million ($123,862 thousand), compared to the previous method. The establishment of the employee retirement benefit trust during fiscal 2001
resulted in an increase in Income before Income Taxes of ¥38,505 million ($310,776 thousand).
4. From fiscal 2000, the Accounting Standard for Financial Instruments has been adopted, which changed the valuation methods for securities and derivative
contracts, as well as the accounting method for hedge transactions. These changes resulted in an increase in Income before Income Taxes of ¥33,538 million($270,686 thousand), compared to the previous method.

CHAPTER 10

MIZUHO 137

Non-Consolidated Balance Sheets
The Fuji Bank, Limited
March 31, 2001 and 2000

Thousands of
U.S. dollars

Millions of yen

March 31, 2001

March 31, 2000

March 31, 2001

¥ 1,985,789
316,494
53,8352,003,435
26,364
10,526,340
31,666,743
305,079
2,692,520
522,999565,485
3,343,835(473,026)(98,425)¥ 2,541,682
171,967
34,983
1,163,889
50,401
6,427,786
31,267,681
316,136
1,594,605
525,119605,896
2,800,360(464,024)(27,037)$ 16,027,355
2,554,433
434,511
16,169,777
212,788
84,958,360
255,583,082
2,462,305
21,731,401
4,221,138
4,564,051
26,988,184(3,817,808)(794,395)¥53,437,473¥47,009,449$431,295,182¥33,731,546
3,457,195
579,000
1,171,579
1,998,304
88,389300,000
6,108,022—
57,022
62,48835,712
78
83,122
3,343,835¥32,015,560
3,661,101
565,000
691,730
2,028,227
140,514300,000
2,103,427
44,693—
110,61957,50668
85,5892,800,360$272,248,153
27,903,110
4,673,123
9,455,849
16,128,366
713,396
2,421,308
49,298,005—
460,233
504,343
288,233
632
670,884
26,988,184

51,016,298

44,604,399

411,753,819

Shareholders’ Equity
Common Stock and Preferred Stock
Capital Surplus
Revaluation Reserve for Land, net of Taxes
Retained Earnings:
Appropriated Reserve
Unappropriated Retained Earnings

1,039,544
929,907
134,475
317,247
223,873
93,373

1,039,544
929,907135,229
300,368
174,135
126,233

8,390,186
7,505,309
1,085,357
2,560,511
1,806,889
753,622

Total Shareholders’ Equity

2,421,174

2,405,050

19,541,363¥53,437,473¥47,009,449$431,295,182

ASSETSCash and Due from Banks
Call Loans and Bills Purchased
Other Debt Purchased
Trading Assets
Money Held in Trust
Securities
Loans and Bills Discounted
Foreign Exchange Assets
Other Assets
Premises and Equipment
Deferred Tax Assets
Customers’ Liabilities for Acceptances and Guarantees
Reserve for Possible Losses on Loans
Reserve for Possible Losses on Securities
Total Assets
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Deposits
Call Money and Bills Sold
Commercial Paper
Trading Liabilities
Borrowed Money
Foreign Exchange Liabilities
Bonds and Notes
Other Liabilities
Reserve for Retirement Allowances
Reserve for Employee Retirement Benefits
Reserve for Possible Losses on Loans Sold
Reserve for Possible Losses on Support of Specific Borrowers
Other Reserves
Deferred Tax Liabilities on Revaluation Reserve for Land
Acceptances and Guarantees
Total Liabilities

Total Liabilities and Shareholders’ Equity

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥123.90=US$1.00, the foreign exchange rate on March 31, 2001, has been used for translation.

138 MIZUHONon-Consolidated Statements of Income
The Fuji Bank, Limited
For the fiscal years ended March 31, 2001 and 2000

Thousands of
U.S. dollars

Millions of yen

Fiscal 2000

Fiscal 1999

Fiscal 2000

IncomeInterest Income
Loans and Bills Discounted
Securities
Fee and Commissions Income
Trading Income
Other Operating Income
Other Income¥1,010,628
784,299
113,214
127,418
38,541
32,460400,565¥1,366,251
724,641
97,478116,037
11,965
139,600
412,160$ 8,156,805
6,330,105
913,757
1,028,397
311,070
261,986
3,232,978Total Income

1,609,614

2,046,014

12,991,236

519,475
358,632
48,07915,573
15,902
346,140
556,846872,865
233,898
45,352
1,450
113,164
350,394435,881

4,192,703
2,894,533
388,048
125,695
128,349
2,793,708
4,494,320

Total Expenses

1,502,017

1,819,109

12,122,823

Income before Income Taxes
Income Tax Expenses:
Current
Deferred

107,596

226,904

868,413274
39,176

248
124,501

2,217
316,195

68,145¥ 102,154

Expenses
Interest Expenses
Deposits
Fee and Commissions Expenses
Trading Expenses
Other Operating Expenses
General and Administrative Expenses
Other Expenses

Net Income¥$

550,001

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥123.90=US$1.00, the foreign exchange rate on March 31, 2001, has been used for translation.
3. From fiscal 2000, the Accounting Standard for Employee Retirement Benefits has been adopted. As a result, Income before Income Taxes decreased by¥12,644 million ($102,055 thousand), compared to the previous method. The establishment of the employee retirement benefit trust during fiscal 2001
resulted in a decrease in Income before Income Taxes of ¥21,224 million ($171,301 thousand).
4. From fiscal 2000, the Accounting Standard for Financial Instruments has been adopted, which changed the valuation methods for securities and derivative
contracts, as well as the accounting method for hedge transactions. These changes resulted in an increase in Income before Income Taxes of ¥33,232 million ($268,222 thousand), compared to the previous method.

CHAPTER 10

MIZUHO 139

Non-Consolidated Balance Sheets
The Industrial Bank of Japan, Limited
March 31, 2001 and 2000

Thousands of
U.S. dollars

Millions of yen

March 31, 2001

March 31, 2000

March 31, 2001

¥ 1,040,678
354,657
32,141
2,363,954
6,274
9,632,464
22,480,014
176,692
5,537,755
235,0399,540
323,827
1,786,157(263,538)¥

841,161
558,002
7,197
2,163,616
10,123
7,703,889
22,232,483
222,663
3,090,749
257,462
8,742
363,922
1,491,724(901,118)$¥43,715,659¥38,050,621$352,830,185¥ 8,308,958
18,395,801
4,015,726
611,000
1,303,747
1,483,347
31,5405,792,429—
50,107
19,425141,025
24,03256,933
1,786,157¥ 6,299,480
19,933,842
2,084,358
164,000
908,652
1,537,621
60,271
3,561,784
49,332—47,506167,198
13,93863,484
1,491,724$ 67,061,810
148,472,975
32,411,026
4,931,396
10,522,576
11,972,133
254,563
46,750,844—
404,417
156,780
1,138,218
193,968
459,512
14,416,121

42,020,231

36,383,195

339,146,339

Shareholders’ Equity
Common Stock and Preferred Stock
Capital Surplus
Revaluation Reserves for Land, net of Taxes
Retained Earnings:
Appropriated Reserves
Unappropriated Retained Earnings

673,605
570,132
91,061
360,630
275,154
85,475

673,605
570,132
99,212
324,475
248,178
76,296

5,436,685
4,601,551
734,956
2,910,654
2,220,778
689,876

Total Shareholders’ Equity

1,695,428

1,667,425

13,683,846¥43,715,659¥38,050,621$352,830,185

ASSETSCash and Due from Banks
Call Loans and Bills Purchased
Other Debts Purchased
Trading Assets
Money Held in Trust
Securities
Loans and Bills Discounted
Foreign Exchange Assets
Other Assets
Premises and Equipment
Deferred Debenture Charges
Deferred Tax Assets
Customers’ Liabilities for Acceptances and Guarantees
Reserves for Possible Losses on Loans
Total Assets
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Deposits
Debentures
Call Money and Bills Sold
Commercial Paper
Trading Liabilities
Borrowed Money
Foreign Exchange Liabilities
Other Liabilities
Reserves for Retirement Allowances
Reserves for Employee Retirement Benefits
Reserves for Possible Losses on Loans Sold
Reserves for Possible Losses on Support of Specific Borrowers
Other Reserves
Deferred Tax Liabilities on Revaluation Reserve for Land
Acceptances and Guarantees
Total Liabilities

Total Liabilities and Shareholders’ Equity

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥123.90=US$1.00, the foreign exchange rate on March 31, 2001, has been used for translation.

140 MIZUHO

8,399,343
2,862,447
259,416
19,079,538
50,64277,743,865
181,436,760
1,426,089
44,695,366
1,897,008
77,001
2,613,617
14,416,121(2,127,028)

Non-Consolidated Statements of Income
The Industrial Bank of Japan, Limited
For the fiscal years ended March 31, 2001 and 2000

Thousands of
U.S. dollars

Millions of yen

Fiscal 2000

Fiscal 1999

Fiscal 2000

IncomeInterest Income
Loans and Bills Discounted
Securities
Fee and Commissions Income
Trading Income
Other Operating Income
Other Income¥ 873,448
555,845
201,994
81,564
41,293
105,378
168,329¥1,333,240
531,095
180,375
66,515
18,1601,007,451
298,786$ 7,049,627
4,486,242
1,630,301
658,312333,278
850,514
1,358,595

Total Income

1,270,015

2,724,155

10,250,326

702,009
212,123
14,041
174,980
14,947—
61,899140,508
253,172

1,098,353
255,932
20,224
128,825
14,861171
1,005,385
140,684
326,2665,665,936
1,712,052
113,333
1,412,270
120,638—
499,591
1,134,051
2,043,362

Total Expenses

1,172,537

2,585,723

9,463,578

Income Before Income Taxes
Income Tax Expenses:
Current
Deferred

97,478138,432

786,748

1,105
34,43937,811
40,388

8,918
277,960

Expenses
Interest Expenses
Debentures
Amortization of Debenture Discounts
Deposits
Fee and Commissions Expenses
Trading Expenses
Other Operating Expenses
General and Administrative Expenses
Other Expenses

Net Income¥

61,933¥60,232$499,870

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥123.90=US$1.00, the foreign exchange rate on March 31, 2001, has been used for translation.
3. From fiscal 2000, the Accounting Standard for Employee Retirement Benefits has been adopted. As a result, Income before Income Taxes decreased by¥3,448 million ($27,836 thousand), compared to the previous method. The establishment of the employee retirement benefit trust during fiscal 2001
resulted in a decrease in Income before Income Taxes of ¥2,876 million ($23,218 thousand).
4. From fiscal 2000, the Accounting Standard for Financial Instruments has been adopted, which changed the valuation methods for securities and derivative
contracts, as well as the accounting method for hedge transactions. These changes resulted in an increase in Income before Income Taxes of ¥334 million($2,699 thousand), compared to the previous method.

CHAPTER 10

MIZUHO 141

Non-Consolidated Balance Sheet
Mizuho Securities Co., Ltd.
March 31, 2001

ASSETSCash and Due from Banks
Receivables:
Securities Purchased under Resale Agreements
Securities Borrowed
Call Loans and Short-term Loans
Accrued Income
OthersTrading Assets
Securities in Custody
Premises and Equipment
Investment Securities
Other Assets
Total Assets
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Short-term Borrowings
Trading Liabilities
Payables:Payables to Customers
Unsettled-trade
Securities Sold under Repurchase Agreements
Securities Loaned
Others
Accrued Liabilities and Others:
Income Taxes Payable
OthersSecurities Borrowed and Deposited
Statutory Reserves
Total Liabilities
Shareholders’ Equity
Common Stock
Capital Surplus
Retained Earnings
Total Shareholders’ Equity
Total Liabilities and Shareholders’ Equity
Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥123.90=US$1.00, the foreign exchange rate on March 31, 2001, has been used for translation.

142 MIZUHOMillions of yen

Thousands of
U.S. dollars

March 31, 2001

March 31, 2001

¥

$

3,500

44,394

1,253,402
1,282,966
20,0005,865
2,043
2,074,448
1,665,736
5,130
46,957
12,375

10,116,242
10,354,858
161,42147,340
16,48816,742,929
13,444,201
41,408378,993
99,882¥6,374,426$51,448,156¥$

10,055667,372

81,156
5,386,379

1,738
113,980
1,185,621
2,474,141879

14,032919,937
9,569,183
19,968,858
7,097

6
6,962
1,665,736
139

48
56,197
13,444,201
1,127

6,126,633

49,448,215

150,200
95,3242,268

1,212,268
769,367
18,306

247,792

1,999,941¥6,374,426$51,448,156

Non-Consolidated Statement of Income
Mizuho Securities Co., Ltd.
For the fiscal year ended March 31, 2001

Millions of yen

Thousands of
U.S. dollars

Fiscal 2000

Fiscal 2000

¥13,121
3,642
9,933
78

$105,908
29,40280,174635

Subtotal
Less: Interest Expenses

26,777(6,207)

216,119(50,097)

Total Revenue

20,570166,022

19,187
3,043
534

154,862
24,565
4,314

22,765

183,741(2,195)(17,719)

126
(946)

1,019
(7,636)¥ (1,375)$ (11,102)

Revenues
Commissions
Net Gain on Trading
Interest Income
Other Income

Expenses
Selling, General, and Administrative Expenses
Merger-related Cost
Other Expenses
Total Expenses
Loss before Income Taxes
Income Tax Expenses:
Current
Deferred
Net Loss
Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥123.90=US$1.00, the foreign exchange rate on March 31, 2001, has been used for translation.

CHAPTER 10

MIZUHO 143

Non-Consolidated Balance Sheet
Mizuho Trust & Banking Co., Ltd.
March 31, 2001

Millions of yen

Thousands of
U.S. dollars

March 31, 2001

March 31, 2001

¥107,576
11,85811,000196,904
1,102
96,181
4,589
11,688(33)$ 868,255
95,71088,781
1,589,218
8,896
776,280
37,041
94,339(270)¥440,867$3,558,250¥ 41,243
230,124
14,9003,059$ 332,880
1,857,342
120,263
24,693289,328

2,335,178

115,000
55,000(18,461)

928,168
443,906(149,002)

Total Shareholders’ Equity

151,538

1,223,072

Total Liabilities and Shareholders’ Equity¥440,867$3,558,250

ASSETSCash and Due from Banks
Call Loans
Money Held in Trust
Securities
Foreign Exchanges
Other Assets
Premises and Equipment
Deferred Tax Assets
Reserve for Possible Losses on Loans
Total Assets
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Deposits
Due to Trust Account
Other Liabilities
Reserve for Employee Retirement Benefits
Total Liabilities
Shareholders’ Equity
Common Stock
Capital Surplus
Deficits

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥123.90=US$1.00, the foreign exchange rate on March 31, 2001, has been used for translation.

144 MIZUHONon-Consolidated Statement of Income
Mizuho Trust & Banking Co., Ltd.
For the fiscal year ended March 31, 2001

Millions of yen

Thousands of
U.S. dollars

Fiscal 2000

Fiscal 2000

IncomeFiduciary Income
Interest Income
Securities
Call Loans
Fee and Commissions Income
Other Operating Income
Other Income¥40,202
1,051
464
475
13,633576
164$324,475
8,490
3,751
3,834
110,035
4,650
1,328

Total Income

55,628448,978651
15
797
33,87730,528

5,259
128
6,434
273,422
246,395

65,854

531,510

Loss before Income Taxes
Income Tax Expenses:
Current
Deferred(10,225)(82,532)

35(4,152)284(33,518)

Net Loss¥ (6,107)$ (49,298)

Expenses
Interest Expenses
Deposits
Fee and Commissions Expenses
General and Administrative Expenses
Other Expenses
Total Expenses

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥123.90=US$1.00, the foreign exchange rate on March 31, 2001, has been used for translation.

CHAPTER 10

MIZUHO 145

Corporate Data of MIZUHO

Chapter 11
Contents

CHAPTER 11
146 MIZUHOInvestor Information on Mizuho Holdings

147

Office Network of MIZUHO148

Investor Information on Mizuho Holdings

Date of Establishment

Accounting Auditors

September 29, 2000

¥2,572,000 million

Century Ota Showa & Co.
(Century Ota Showa & Co. has changed its name to
Shin Nihon & Co. effective July 1, 2001.)
ChuoAoyama Audit Corporation

Outstanding Shares

Transfer Agent

10,321,267.53 shares
Common Shares: 9,205,856.53 shares
Preferred Shares: 1,115,411 shares

Mizuho Trust & Banking Co., Ltd.

Paid-in Capital

Fiscal Year
April 1 to March 31

Number of Shareholders
Common Shares:
Preferred Shares:

Convocation of General Meetings of Shareholders

134,475
10

Principal Shareholders (Common Stock)

A regular general meeting of shareholders of the Company
shall be convened no later than three months from the last
day of each business year and an extraordinary general
meeting of shareholders shall be convened whenevernecessary.

Shares held

Percentageof shares
outstanding(%)

The Dai-ichi Mutual Life Insurance
Company

379,160.00

4.11

Japan Trustee Services Bank, Ltd.
(Trust account)

323,673.00

3.51

NIPPON LIFE INSURANCE COMPANY 236,663.76

2.57

THE YASUDA MUTUAL LIFE
INSURANCE COMPANY

188,231.40

2.04

Asahi Mutual Life Insurance
Company

175,608.00

1.90

The Mitsubishi Trust and Banking
Corporation (Trust account)

148,938.00

1.61

The Company shall deem shareholders having voting rights
appearing on the last register of shareholders (including theregister of beneficial shareholders; the same shall apply hereinafter) as of March 31 of each year as the shareholders
who shall be entitled to exercise their rights at the regular
general meeting of shareholders for the relevant fiscal term.
In addition to the preceding paragraph, the Company may
temporarily set the record date whenever necessary, pursuant
to a resolution of the Board of Directors and upon giving aprior public notice thereof.

STATE STREET BANK AND TRUSTCOMPANY

122,368.00

1.32

Dividends

The Yasuda Fire and Marine
Insurance Co., Ltd.

104,694.00

1.13

The Toyo Trust and Banking
Company, Limited (Trust account A)

103,278.00

1.12

THE CHASE MANHATTAN BANK,
N.A. LONDON

93,622.00

1.01

Record Date(as of March 31, 2001)

Stock Listings
Tokyo Stock Exchange
Osaka Securities Exchange
London Stock Exchange

Dividends on shares shall be paid to the shareholders or
registered pledgees appearing on the last register of shareholders as of March 31 of each year or to the holders offractional shares appearing on the last register of holdersof fractional shares as of March 31 of each year.
Interim Dividends
The Company may, by a resolution of the Board of Directors,
make cash distributions pursuant to the provisions of Article
293-5 of the Commercial Code (referred to as “Interim
Dividends” in these Articles of Incorporation) to the shareholders or registered pledgees appearing on the last registerof shareholders as of September 30 of each year or to theholders of fractional shares appearing on the last register ofholders of fractional shares as of September 30 of each year.

CHAPTER 11

MIZUHO 147

Office Network of MIZUHO(As of June 30, 2001)

MIZUHO OFFICES (as of July 31, 2001)
Mizuho Trust & Banking Co. (USA) (New York)
Mizuho Capital Markets Corporation (New York)
Mizuho Bank (Canada) (Toronto)
Mizuho Nederland N.V. (Amsterdam)
Mizuho Bank (Schweiz) AG (Zurich)
Mizuho International plc (London)
Mizuho Capital Markets (UK) Limited (London)
Mizuho Trust & Banking (Luxembourg) S.A.
Mizuho Capital Markets (HK) Limited (Hong Kong)
Mizuho Securities Asia Limited (Hong Kong)DKB OFFICES
Domestic Network (as of March 31, 2001)
Branches: 319
Sub-branches: 39
Agencies: 5
Automated Service Centers: 477
International Network (as of July 31, 2001)
The Americas
Branches and Agency
New York, Chicago, Los Angeles (Agency), Panama, Cayman
Representative Offices
Mexico, São Paulo, Caracas, Buenos Aires
Subsidiaries and Affiliates
DKB Financial Futures Corp., Dai-Ichi Kangyo Bank of California,
DKB Data Services (USA) Inc.,
UNIBANCO-UNIÃO DE BANCOS BRASILEIROS S.A.,
Dai-Ichi Kangyo Trust Company of New York, The CIT Group, Inc.
Europe and the Middle East
Branches
London, Düsseldorf
Representative Office
Bahrain
Subsidiary
DKB Investment Management International Limited
Asia and Oceania
BranchesSeoul, Shanghai, Dalian, Hong Kong, Taipei, Kaohsiung, Bangkok, Singapore,
SydneyRepresentative Offices
Beijing, Wuhan, Xiamen, Guangzhou, Manila, Ho Chi Minh City, Yangon,
Jakarta, Bombay

148 MIZUHOSubsidiaries and Affiliates
DKB Leasing (Thailand) Co., Ltd., TISCO Finance Public Company Limited,
Chekiang First Bank Ltd., DKB Asia Limited, P.T. Bank Dai-Ichi Kangyo
Indonesia, P.T. Dai-Ichi Kangyo Panin Leasing, DKB Merchant Bank (Singapore)
Limited, Dai-Ichi Kangyo Australia Limited

FUJI BANK OFFICES
Domestic Network (as of March 31, 2001)
Branches: 261
Sub-branches: 43
Agencies: 2
Automated Service Centers: 650
International Network (as of July 31, 2001)
The Americas
Branches and Agencies
New York, Chicago, Los Angeles (Agency), Houston (Agency),
Grand Cayman
Representative Offices
São Paulo, Colombia
Subsidiaries and Affiliates
Fuij America Holdings, Inc., Fuji Futures Inc., Heller Financial, Inc.,
Heller International Group, Inc., Fuji Securities Inc.,The Fuji Bank & Trust Company
Europe and the Middle East
Branches
London, Paris
Representative Offices
Bahrain, Tehran
Subsidiaries and Affiliates
Fuji Leasing (UK) Limited,
Fuji Investment Management Company (Europe) Limited* International Banking Facility

MIZUHO 149

CHAPTER 11

Asia and Oceania
Branches, International Banking Facility and Marketing OfficeSeoul, Shanghai, Dalian, Shenzhen, Hong Kong, Taipei, Manila, Hanoi,
Bangkok (IBF*), Labuan, Kuala Lumpur (Marketing Office), Singapore, Mumbai
Representative Offices
Beijing, Tianjin, Nanjing, Guangzhou, Kuala Lumpur
Subsidiaries and Affiliates
Bangkok Fuji Holding Company, Limited, P.T. Bank Fuji International
Indonesia, P.T. Jaya Fuji Leasing Pratama, Fuji International Finance(Singapore) Pte., Limited, The Fuji Futures (Singapore) Pte., Limited,
Fuji International Finance (Australia) Limited

IBJ OFFICES
Domestic Offices (as of March 31, 2001)
Branches: 24
International Offices (as of July 31, 2001)
The Americas
Branches, Office and Agencies
New York, Chicago, Los Angeles (Agency), San Francisco (Office),
Atlanta (Office), Houston (Office), Grand Cayman
Representative Offices
Mexico, São Paulo
Subsidiaries and Affiliates
Aubrey G. Lanston & Co. Inc., DLIBJ Asset Management U.S.A., Inc.,
IBJ Whitehall Bank & Trust Company,
The Bridgeford Group, Inc., The Industrial Bank of Japan Trust Company
Europe and the Middle East
Branches
London, Madrid, Milan
Representative Office
Bahrain
Subsidiaries and Affiliates
Industriebank von Japan (Deutschland) Aktiengesellschaft (Frankfurt),
DLIBJ Asset Management International Ltd.,IBJ-BA Consulting Investitionberatung GmbH
Asia and Oceania
Branches
Shanghai, Dalian, Beijing, Hong Kong, Bangkok, Singapore
Representative Offices
Seoul, Wuhan, Guangzhou, Jakarta
Subsidiaries and Affiliates
P.T. Bumi Daya-IBJ Leasing, P.T. Bank IBJ Indonesia,
IBJ Lanston Futures Pte. Ltd., IBJ Australia Bank Limited

150 MIZUHON o .1 F i n a n c i a l
The Mizuho Financial Group is an innovative financialgroup that will lead the new era through cutting-edge

Contact Information

Mizuho Holdings, Inc.
1-6-1, Marunouchi,
Chiyoda-ku, Tokyo 100-0005,
Japan
Tel. +81-(0)3-5224-1111
URL: http://www.mizuho-fg.co.jp

comprehensive financial services.
The Dai-Ichi Kangyo Bank, Limited
1-1-5, Uchisaiwaicho,
Chiyoda-ku, Tokyo 100-0011,
Japan
Tel. +81-(0)3-3596-1111
URL: http://www.dkb.co.jp

DKB

Fuji Bank

MizuhoSecurities

IBJ

Mizuho Trust& BankingBASIC PRINCIPLES OF THE CONSOLIDATION
We will create a new financial services group that will lead the 21st century based on
the following five basic principles: Offer a wide range of the highest-quality financial services to our customers.
 Maximize shareholder value and, as the leader of Japan’s financial services industry,earn the trust of society at large.

The Fuji Bank, Limited
1-5-5, Otemachi,
Chiyoda-ku, Tokyo 100-0004,
Japan
Tel. +81-(0)3-3216-2211
URL: http://www.fujibank.co.jp

The Industrial Bank of Japan, Limited
1-3-3, Marunouchi,
Chiyoda-ku, Tokyo 100-8210,
Japan
Tel. +81-(0)3-3214-1111
URL: http://www.ibjbank.co.jp

 Offer attractive and rewarding job opportunities for employees.
 Fully utilize the advantages and strengths of each bank and maximize the benefits ofthe consolidation through cost reductions.
 Create a new corporate climate and culture.

Group Name:

Mizuho Financial Group (“MHFG”)

Holding Company Name: Mizuho Holdings, Inc. (“MHHD”)
Meaning:

In Japanese, mizuho () means “fresh harvest of rice,” and the phrase “mizuho
country”—meaning “fruitful country”—is used to refer poetically to Japan.

Reason for Selection:

The name “Mizuho” expresses the commitment of MHFG, as Japan’s leading financial institution, tooffer highly “fruitful” products and services to all of its customers, both domestic and overseas.
We feel that the youthful and energetic image of freshness projected by this name is perfectly suitedfor the new corporate culture of MHFG, and that it is a name with which everyone can easily become
familiar.

The Mizuho Logo:I MIZUHO

The logo is the combination of the initial letter “M” of “Mizuho” and a deep blue arc. The “M”
appears to be in dynamic motion, expressing liveliness and action, while the deep-blue arc depicts theearth. The colors used in the logo also have a special meaning—the bright red highlighting passion,action and dynamism and the deep blue highlighting reliability and stability.

Mizuho Securities Co., Ltd.
Otemachi First Square,
1-5-1, Otemachi,
Chiyoda-ku, Tokyo 100-0004,
Japan
Tel. +81-(0)3-5208-3210
URL: http://www.mizuho-sc.com

Mizuho Trust & Banking Co., Ltd.
1-6-2, Marunouchi,
Chiyoda-ku, Tokyo 100-0005,
Japan
Tel. +81-(0)3-3240-7000
URL: http://www.mizuho-tb.co.jp

2 0 0 1

Printed in Japan on recycled paper

Annual Report(April 2000~March 2001)