Annual Report 2021

ProfileThe Shimizu Bank, Ltd. was established in
1928 with the merger of six banks and has
always been a valuable partner of the local
community.
The Bank has its headquarters in Shizuoka City,
which has the Shimizu Port, the largest in theprefecture.
Shimizu Port, located halfway between
Tokyo and Osaka, plays a significant
role in international trade and economic
development.
We will provide customers with a wide rangeof financial services, seek further businessexpansion as a customer-friendly bank andcontribute to the development of the local
community.

Bank Data
Head Office

As of March 31, 2021

2-1 Fujimicho, Shimizu-ku, Shizuoka-shi,
Shizuoka 424-0941 Japan

Date of Incorporation:
July 1, 1928
JP¥10,816,260,000
Paid-up Capital:
78
Number of Branches:
Number of Sub-branches:1904
Number of Employees:
Consolidated Capital Adequacy Ratio(based on domestic standards): 9.03%
Non-Consolidated Capital Adequacy Ratio(based on domestic standards): 8.79%

Consolidated Subsidiaries

As of March 31, 2021

Capital(Millions of Yen)

Ratio of Voting
Right

Ratio of Voting Right
Other Group
Companies

Established

The Shimizu Business Service Co., Ltd.

10100.00%−December 10,1981

Calculating cash

The Shimizugin Career Up Co., Ltd.

30

100.00%−

October 22,1990

Delegation of personnel

The Shimizu General Maintenance Co., Ltd.

30

100.00%−December 24,1991

Management of real estate

The Shimizu Regional Economy Research Center, INC

12100.00%−

October 28,1965

Financial and economic
research services,Training

The Shimizu Credit Guarantee Co., Ltd.

50

100.00%−November 1,1978

Credit guaranteeing

The Shimizu Lease and Card Co., Ltd.

60

15.13%

48.32%

April 14,1999

Leasing, Credit card

The Shimizu General Computer Service Co., Ltd.

30

5.00%

50.00%

July 1,1989

Calculation operations

Name of Company

Line of Business

THE SHIMIZU BANK,LTD.
1

Message
We want to thank all of our customers for your continued
patronage at the Shimizu Bank and our group partners.
We have put together a packet of Disclosure Materials the2021 fiscal year to share the financial highlights and ourefforts of the 2020 fiscal year. We invite you to read thesematerials to further your understanding of the Shimizu Bankand our group partners.
During the fiscal year under review, the challenging
situation continued in general for the Japanese economy
due to the stagnation of economic activity in Japan andoverseas as a result of the impact of the novel coronavirus
disease (COVID-19). Despite preparing measures toprevent the spread of infection while steadily restarting
economic activity, we saw signs of partial improvement incorporate profits as production recovered, mainly in the
manufacturing industry. However, the situation continues
to be challenging in the service industry, such as in therestaurant industry and the tourism industry. Despite
showing signs of recovery in some industries after thechanges to peoples' lifestyles and purchasing behaviors as
a result of self-restraint in going out, there are concernsthat the impact on consumer spending will be prolonged
due to the resurgence of COVID-19.
In general, the economy of Shizuoka Prefecture, which isthe primary business base of the Bank, continues to be in achallenging situation overall, but trends differ by industry
as exports and production have partially recovered.
Although efforts are being made to stop the deteriorationof the labor market, the outlook of the employment andincome environment is unclear.
Looking at the financial environment, monetary easing
policies from the major central banks in Japan, the U.S.
and Europe continued due to the impact of the global
spread of COVID-19. Domestic long-term interest rates
hovered around 0% under the Bank of Japan's“Quantitative and Qualitative Monetary Easing (QQE) with
Yield Curve Control.”It was in this context that we developed the measurespresented in the 27th Medium-term Management Plan“ZENSHIN – Building Bridges –,” which started from April
2020, concentrated the power of all employees andstrove for secure revenue and greater soundness whilestaying closely attuned to customers.
In terms of initiatives aimed at corporate customers, wenewly established the “Solution Sales Division” in order to
respond to diversifying customer needs and management
issues. The “Solution Sales Division” strengthens the systemthat works to solve local customers' issues by assigning
specialists in areas of expertise, such as businesssuccession, M&A, business matching, public subsidies,
overseas expansion support, healthcare and nursing, etc.
Furthermore, in order to enhance the solutions programthat responds to needs such as labor shortages in local
companies, we made it possible to carry out humanresources placement operations by obtaining thepermission of fee-charging employment placementbusinesses.
As part of our initiatives for individual customers, we madepersonal seals unnecessary for some procedures forclosing deposit accounts in order to reduce the burden on
customers, and also worked to improve our branches byintroducing antivirus and antibacterial films for ATM touch
panels so that customers can feel easy about visiting.
Furthermore, the number of loans increased as the loansthat can be concluded in a non-face-to-face manner“Shimizu Web Auto Loan” and “Shimizu Web Education
Loan,” which we began to offer in June 2020, were rated
very highly by customers.

As part of our initiatives to contribute to SDGs and CSR, we
protected the abundant nature of the area, and wereawarded the “Distinguished Service Award” as a supporterof Shizuoka's future forests due to our initiatives being
recognized for the conservation of the world heritage site
Miho no Matsubara as well as the forests we hold in Kiyoji,
Shimizu-ku, Shizuoka-shi, which we have continued formany years in order to realize a green society.
Furthermore, the “Shimizu Regional Revitalization Private
Placement Bond,” which donates a portion of feescollected from issuers of private placement bonds toorganizations, etc. working to achieve SDGs, reached acumulative total of 190 issuances and ¥15.2 billion inamount issued as of March 31, 2021.
By means of such initiatives we have worked to provide amore substantial lineup of services to satisfy customers.
Going forward, we will continue to maintain a keenawareness of our social responsibility as a financeinstitution, and in addition to building a robust structure forcompliance, we will work to strengthen governance inorder to increase corporate value. In order to respond to
the trust and expectations from shareholders and local
community residents, we will increase all of our employees'
response capabilities, concentrate power and work totake on the challenge of and implement reform. We
humbly and sincerely request your continued support andwarm patronage.

Yasuhiro Iwayama
President

THE SHIMIZU BANK,LTD.
2

The 27th Medium-term Management Plan
From April 1,2020 to March 31,2023 (Three Years)

ZENSHIN
The 27th Medium-term Management Plan is the first phase of the three phases of three years each,totaling nine
years from the start year and ending in the 100th anniversary of the founding of the Company. During the first
three-year phase, which has been positioned as an important period for raising the base level of profitability, we
will work on the three basic policies of “pursuing customer-oriented business,” “maximizing the power of humanresources,” and “strengthening our business base.
The “ＺＥＮＳＨＩＮ” label we have used for this plan incorporates the three Japanese meanings of “conscience,”“whole body,” and “forward movement,” and is intended to convey the sense of “Using every last bit of effort
to move forward unstoppably, one step at a time, with a pure heart.” The subtitle “– Building Bridges –” reflects
both our determination to build bridges to customers, and our intent to build a bridge to the leap forward
represented by our 100th anniversary.

M

‘
’

’

・・・

M
Pursuing customer-oriented business①②③

THE SHIMIZU BANK,LTD.
3

Support for Overseas Business Development
Network of Support for Overseas Expansion

The Shimizu Bank Ltd.

(Mexico)Estadode Aguascalientes

Vietcom Bank
(Vietnam)

Estado de Jalisco
Bank of Communication(China)Estadode Nuevo León

State Bank of India(India)Bangkok
Representative Office(Thailand)

Estadode Guarajuato

Metropolitan Bank
(Philippines)

Bank Negara Indonesia(Indonesia)

Domestic External Network
The Japan Bank for International Cooperation (JBIC)
Daiwa Securities Co.,Ltd
Shizuoka International Business Association(SIBA)MIRAI Consulting
Meinan Group
Orix Corporation
Japan Halal Business Association

Local Financial Institutions

Banco Nacionalde Mexico, s.a.
Integrante del Gpupo
Financiero Banamex

Wide Area Cooperationof Regional BanksThe Shimizu Bank, Ltd.
The Shikoku Bank, Ltd.
Tsukuba Bank, Ltd.
The Hokuto Bank, Ltd.
The Bank of Toyama, Ltd.

THE SHIMIZU BANK,LTD.
4

Mt.Fuji -Our Symbol-

Mt. Fuji and The Shimizu Bank

Mt. Fuji is the highest mountain in Japan, located on the border of Shizuoka
prefecture, and is widely known as a symbol of Japan, at home and abroad, for its
elegant appearance.
We have published a calendar about Mt. Fuji every year since 1969 and have beenusing a corporate logo since 1974 whose design includes images of Mt. Fuji and Gulf
of Suruga.
In June of 2013, Mt. Fuji was registered as a World Heritage Site.
In line with the growing recognition of Mt. Fuji across the world, we intend to further
strengthen "demonstrate the significance of our existence" for individual customers.

THE SHIMIZU BANK,LTD.
5

Summary of Business
Consolidated Results

Ordinary income decreased by ¥1,191 million year on year to ¥27.782 billion due to decreases in revenue related to securities.
Ordinary expenses decreased by ¥8,897 million year on year to ¥24.307 billion due to decreases in expenses and credit-related
expenses. As a result, an ordinary profit of ¥3.475 billion was posted.
In terms of deposits, as a result of striving to expand our business base, which has close ties to the region, total deposits increasedby ¥107.6 billion from the end of the previous fiscal year to ¥1,490.7 billion.
In personal deposit assets, by responding to increasing diverse customer needs, we succeeded in growing personal deposits andpersonal pension insurance, leading to an increase of ¥75.0 billion over the end of the previous fiscal year, to ¥1,253.7 billion.
Loans and bills discounted rose by ¥54.2 billion from the end of the previous fiscal year to ¥1,204.2 billion, as a result of responding
proactively, as a regional financial institution, to demand from customers for funding.
Securities rose by ¥23.4 billion over the end of the previous fiscal year, to ¥310.1 billion, the result of keeping a close eye on market
fluctuations while taking a flexible approach to management.
(Millions of Yen)

Consolidated Five-years Summary
Ordinary Income
Ordinary Profit
Profit Attributable to Owners of The Parent
Comprehensive Income
Total Net Assets
Total Assets

2017¥28,760
3,948
2,978
1,684
81,6591,590,062

2018¥27,637
3,345
2,332
2,509
83,602
1,510,013

2019¥28,675
3,620
2,521
1,958
89,173
1,656,759

2020¥28,974▲4,230▲3,968▲5,98082,512
1,596,871

2021¥27,782
3,475
2,163
5,179
87,071
1,795,397

Net Assets per Share in Yen
Net Income per Share in Yen
Consolidated Capital Adequacy Ratio (based on domestic standards)
Number of Employees

8,408.00
312.2910.60%
1,044

8,629.71
244.5210.30%
1,027

7,584.31
225.839.41%
1,006

7,001.06▲342.58
8.63%
993

7,388.40
186.699.03%
996

Non-Consolidated Results

Ordinary income decreased by ¥1,371 million year on year to ¥21.874 billion due to decreases in revenue related to securities.
Ordinary expenses decreased by ¥9,206 million year on year, to ¥18.503 billion. As a result, an ordinary profit of ¥3.370 billion was
posted.
(Millions of Yen)

Non-Consolidated Five-years Summary
Ordinary Income
Ordinary Profit
ProfitCapital Stock
Number of Shares Issued in Thousand Yen
Total Net Assets
Total Assets
Deposits
Loans and Bills Discounted
Securities2017¥23,632
3,472
2,697
8,670
9,600
78,2891,581,427
1,373,814
1,073,777
253,9732018¥22,473
3,394
2,573
8,670
9,600
80,1591,499,276
1,350,623
1,097,004
308,1022019¥23,0483,411
2,492
10,816
11,641
85,524
1,646,792
1,390,359
1,129,123
300,5012020¥23,245▲4,464▲3,982
10,816
11,641
78,956
1,585,837
1,386,907
1,156,716
287,1302021¥21,874
3,370
2,208
10,816
11,641
82,912
1,784,805
1,494,257
1,211,117
310,524

Net Assets Per Share in Yen
Dividends per Share in Yen
Dividends per Share at mid-term in Yen
Net Income per Share in Yen
Dividends Payment ratio
Non-Consolidated Capital Adequacy Ratio (based on domestic standards)
Number of Employees

8,205.68
60
30
282.8721.21%
10.30%
951

8,398.51
60
30
269.7922.23%
10.06%
942

7,380.63
65
35
223.2329.11%
9.14%
914

6,810.11
55
30▲343.75
-%
8.42%
901

7,149.32
60
30
190.6531.47%
8.79%
904

Ordinary Income(Millionsof Yen)Ordinary Profit(Millionsof Yen)
5,000

30,00023,04823,24521,87420,000

4,000

3,411

3,370

2,492

2,500

▲ 4,464

2019

2020

Credit Rating

2021

Credit rating is assigned to debts as follows:
Concerning the relevant debt, a credit rating
agecy, which is a fair and disinterested third
party, rates the certainty of payment of its
principals and interest on a contractual basis,and such rating is represented using a simple
code.

▲ 3,9820▲ 2,500

0

2,208

2,000

0

10,000

Profit(Millionsof Yen)▲ 4,000

2019

2020
AAA
AA
A
BBB
BB
B
CCC
CC
C
D

2021

2019

2020

2021

Our BankA-

Credit Rating : ARelevant Debt : long-term Preferred Debt
Credit Rating Agency :Japan Credit Rating Agency,Ltd.
(As of March 31, 2021)

THE SHIMIZU BANK,LTD.
6

Corporate Governance Structure
Fundamental Approach to Corporate Governance
At a time when companies are required to enhance corporate governance, the Shimizu Bank believes its mission is toperform business management fairly through delivering increased transparency to shareholders and customers.
To this end, it is necessary for us to bolster the functions of the Board of Directors, realize swift decision-making and develop
a framework to strictly monitor the business management execution.

1) Outline of our corporate governance system

The Audit & Supervisory Committee composed of four Directors serving as Audit & Supervisory Committee Members has been
established, which conducts appropriate audits of the business execution by Directors, leading to more substantial checks on
management.
The Board of Directors consists of eleven Directors (excluding Directors serving as Audit & Supervisory Committee Members), of
which three are Outside Directors, and four Directors serving as Audit & Supervisory Committee Members, of which three are
Outside Directors, for a total of 15. The Chairman of the Bank serves as the Chair, and the Board supervises the execution ofbusiness, such as by taking decisions on important management strategies, etc., based on our business philosophy. Ordinary
meetings of the Board of Directors are held once a month as a rule, in addition to which extraordinary meetings of the Board of
Directors are held as required.
The Audit & Supervisory Committee deliberates and reports on the status of audits, with a particular focus on the duties of
Directors. Ordinary meetings of the Audit & Supervisory Committee are held once a month as a rule, in addition to which
extraordinary meetings are held as required.
The Nomination and Remuneration Advisory Committee has been established with the aim of strengthening the independence,
objectivity, and explanatory functions of the Board of Directors through the appropriate involvement and council of the
Independent Outside Directors when considering particularly important matters such as the nomination and remuneration of
Directors (excluding Directors serving as Audit & Supervisory Committee Members). A majority of the Committee members are
Independent Outside Directors, and the Committee is composed entirely of Directors with representative rights or Independent
Outside Directors (excluding Directors serving as Audit & Supervisory Committee Members).
The Shimizu Bank has in place three categories of management meeting, namely, Ordinary Management Meeting,Expanded Management Meeting and Project Meeting. These serve as consultation bodies designed to haveoperations executed nimbly and with a mutual restraint function. An Ordinary Management Meeting is held daily, inprinciple, to bolster governance and expedite decision-making. To deliberate and resolve more rigorously, an
Expanded Management Meeting is held twice-monthly, in principle, under specified themes such as: 1) loan screening
aimed at reinforcing credit risk control; 2) revenue management for controlling revenue and examining revenue
improvement measures; 3) risk management intended to oversee various risks comprehensively; 4) compliance
control designed to ensure strict compliance with laws and regulations and check and give guidance on such compliance;5) system strategies to deliberate on system strategies for operations; 6) financial reporting to determine a financial closing
policy. A Project Meeting is allowed to be held any time as a meeting to resolve (deliberate) on a specific subject continuously
for a limited period of time, and an Ordinary Management Meeting is supposed to resolve on the subjects and operation forsuch meeting each time. An Ordinary Management Meeting is chaired by the President and its other members are determinedby the Board of Directors, based on a proposal by the Chair. An Expanded Management Meeting is attended by officers
comprising members of an Ordinary Management Meeting as well as employees who are designated separately in subsidiaryrules on a subject-by-subject basis. A Project Meeting is attended by officers more or less identical to attendees of an Ordinary
Management Meeting. Each Management Meeting is regarded as a body designed to resolve and deliberate at thecommission of the Board of Directors, so minutes are created on the resolutions before being reported to the Board.
The ALM Earnings Management Committee, established as a body to comprehensively manage assets and liabilities and be
involved in the formulation of strategic goals, seeks to bolster the framework for earnings management and asset liability
management (ALM).

System to monitor business execution and management
General Meeting of Shareholders
Election and dismissal

Election and dismissal

Election and dismissal
Collaborate

Board of Directorsouditors

Collaborate

Management
Committee

Collaborate

Directors in charge
Division management
Executive Officers
Executionof division operations

Accounting audit

THE SHIMIZU BANK,LTD.
72) State of development of internal control system
In addition to prescribing the following Basic Policy on Internal Control System, the Bank strives to develop its internal control system.
a. ‌System to ensure that duty execution by Directors and employees adheres to laws and regulations as well as the Articles ofIncorporation• Establish the Compliance Manual to specify laws, regulations and rules that directors and employees must observe‌• Installa business unit charged with supervising compliance and strive to develop the compliance framework of the Bank and theShimizu Bank Group as a whole and ascertain compliance issues. Hold an Expanded Management Meeting monthly on the themeof compliance as a meeting chaired by the President and attended by our corporate lawyer• Install‌
compliance managers and administrators at the headquarters and branches; they are to verify the conformity of routine
operations to laws. Establish the Compliance Reporting Scheme to prevent any violation from occurring with respect to the user ofthis reporting scheme, management will not take any action detrimental to the reporting officer such as a disciplinary action andemployee evaluation downgrade on account of the reporting.
• The‌Awards and Discipline Committee takes a penalty action against an employee for a violation of laws and regulations or the
Articles of Incorporation. As for a violation of laws and regulations or the Articles of Incorporation by a Director, the Management
Committee investigates the violation pursuant to the “Director Compliance Rules,” following which the Board of Directors resolves
to take specific action.
‌• The
Bank will battle determinedly against what are generally referred to in Japan as “anti-social forces” and anti-community groups
that threaten order and security in local communities, and will not provide any benefit to such entities.
b. System for the storage and management of information on duty execution by Directors• We
store and manage information on duty execution by Directors such as minutes of Board of Directors meetings and ringi approval‌
letters in an appropriate manner pursuant to internal rules
c. Regulations and other systems for management of risk of loss• To‌ perform risk management appropriately, we establish the Integrated Risk Management Provisions before designating departmentsin charge on a category-by-category basis, thereby building a system to manage various types of risks.
• We‌also install a department charged with performing risk supervision for the entire Bank. This department is to report on the stateof various risks to the Board of Directors and the Management Committee, as required.
• In‌ addition to establishing the Business Continuity Regulations for us to continue operations appropriately in an emergency, we will
respond swiftly and adequately, thus developing a system capable of minimizing effects on our business activities.
d. System to ensure that Directors execute their duties efficiently• Directors‌(excluding Directors serving as Audit & Supervisory Committee Members) are to execute their duties according to theOrganization Regulations and the Job Authority Regulations. The Bank has the Management Committee in place as a body todeliberate and resolve within the scope assigned to it by the Board of Directors, and this committee is to expedite decision-making
for business execution.
• The‌
personnel are to report to the Board of Directors on the state of progress for any matter resolved by the Board of Directors
every three months, thereby managing and ascertaining the progress until completion.
e. System to secure the appropriateness of operations at the corporate group comprising the Bank and its subsidiaries‌• We
strive to secure the appropriateness of our operations with respect to compliance at the Shimizu Bank Group companies andadequate reporting to the Bank, as well as the efficiency of our risk management and duty execution. To this end, we install asupervision department to be charged with operating and managing the Shimizu Bank Group companies. Moreover, weestablish the Shimizu Bank Group Operation and Management Regulations. Our group companies are to submit reports to the
Bank and consult with it according to the List of Matters for Consultation and Reporting by Group Companies.
• The Bank’s personnel are to visit our group companies and audit them, asrequired.
• The‌Bank and its group companies are to comply with accounting standards and other relevant laws and regulations, and develop
a system to secure the trustworthiness of their financial reporting.
f. Matters related to employees who are obliged to assist with the duties of the Audit & Supervisory Committee• At‌ least one person is assigned to assist the Audit & Supervisory Committee in its duties.
‌g. Mattersrelated to ensuring the independence of the employees mentioned in the previous item from Directors (excluding Directors
serving as Audit & Supervisory Committee Members) and the effectiveness of instructions to said employees• In‌ cases where the employees are also obliged to assist in audit operations, for the purposes of assisting in such duties, said employees
are detached from the instructions of the operating departments, such as Directors (excluding Directors serving as Audit &Supervisory Committee Members), and obey the instructions and orders of the Audit & Supervisory Committee.
‌• Withregard to internal transfers and evaluations for employees obliged to assist in such matters, the opinion of the Audit &Supervisory Committee is respected.
h. Systems‌for Directors (excluding Directors serving as Audit & Supervisory Committee Members) and employees to report to the Audit &Supervisory Committee, and other systems for reporting to the Audit & Supervisory Committee.
‌• The
Directors (excluding Directors serving as Audit & Supervisory Committee Members) of the Bank and its group companies are toreport without delay to the Audit & Supervisory Committee on any significant matter that affects the Bank’s operations or financial
results. The employees of the Bank and its group companies are to report on such matter through a control department and by
way of a Director in charge and a group company Director. The Directors (excluding Directors serving as Audit & Supervisory
Committee Members) and employees of the Bank and its group companies must provide cooperation if asked by the Audit &Supervisory Committee to report on operations.
‌• Management
must not take any action detrimental to the reporting officer such as a disciplinary action and employee evaluation
downgrade on account of the above-mentioned reporting.
i. Other systems to ensure that audits of the Audit & Supervisory Committee are conducted effectively• The‌
Audit & Supervisory Committee cooperates with the internal audit department, etc., and regularly exchanges opinions in relation
to issues facing the Bank, issues with internal management structures, and so on. In addition, the Audit & Supervisory Committee
works to achieve appropriate audits, such as by listening to the opinions of the Accounting Auditor and external specialists.
j. Mattersrelated to policies for the processing of expenses and obligations arising from the execution of duties by the Audit & Supervisory‌Committee, such as procedures for prepayment of expenses or for reimbursement arising from the execution of said duties• When‌an Audit & Supervisory Committee Member requests prepayment of expenses required for the execution of duties, or
reimbursement, etc., the expense or obligation in question shall be processed promptly.

THE SHIMIZU BANK,LTD.
8

Compliance System
At the Shimizu Bank group, our awareness of our social responsibility and public duties has led us to make compliance a
top priority, building an effective compliance system that will help us earn the trust of our customers and the local
communities we share.
Our management in particular is actively engaged in compliance issues and is working with executives and employees ofall of the companies in our group to foster awareness on these issue and create a corporate culture in which"compliance is the foundation for everything."

Establishing a Framework for Compliance

For through compliance, the Shimizu Bank has created a ”Legal and Regulatory Compliance Policy” as our basic policy
for compliance in keeping with our management policy. This Compliance Policy is widely disseminated across the Shimizu
Bank group.
At monthly expanded management meetings, members of bank management including the president meet withoutside corporate lawyers to discuss matters concerning compliance.
In addition, we have established the Legal Office within the Corporate Administration Division to supervise complianceand entrusted that office with centralized control of information pertaining to compliance issues and providing
guidance on the laws and regulations officers and employees must observe.
Furthermore, we have assigned individuals to be in charge of compliance at each division and branch to facilitate
coordination with the office that overseas compliance (the Legal Office) and exhaustively enforce observance of laws
and regulations. The Shimizu Bank also assigns regional compliance supervisor and the like in order to properly addresscompliance issues in relevant divisions.

Corporate Culture Attaching Importance to Compliance

The Bank formulated the Compliance Manual which illustrates the Ethics Charter and laws and regulations required to beobserved and which specifically outlines how to deal with any illegal act discovered. Each time laws or regulations areamended, the provisions of the Compliance Manual are revised with the approval of the Board of Directors. We ensurethat the Compliance Manual is adhered to in the Bank by organizing training and in-branch learning programs.
This manual, in electronic format, is allowed to be viewed by any employee via a PC at all times. Thus, we seek to foster
compliance awareness in the organization while striving to cause specific actions to be taken.
Each fiscal year, we formulate the Compliance Program, a specific action plan aimed at securing the state ofcompliance in the Bank. Thus, we engage in effective monitoring activities while developing a compliance framework.
Specifically, based on our training programs, all Shimizu Bank employees take e-learning-based compliance study andtesting courses, among other efforts to grasp rules including various laws and regulations.
The results of such courses are analyzed by the Compliance Supervisory Department before being reported to the
Expanded Management Meeting. Then, the personnel discuss measures such as those for preventing any violation of laws
and regulations and stopping their recurrence before refiecting such measures in our business execution, in a move tofurther bolster our compliance system.
The Shimizu Bank Group has in place the Compliance Reporting Scheme, a system in which to report any issue or
problem detected. We secured neutrality for the system by arranging for the General Manager of the Legal Office at the
Corporate Administration Division and our corporate lawyers to serve as reporting desks. Moreover, we built a platformto prevent any user of this reporting scheme from being subjected to detrimental treatment on account of the reporting,thereby striving to avert misconduct and fraud.

Charter of Ethics
1. Establishing trust

In order to maintain the structure of credit and to smooth financial processes in the regions, while remaining awareof the social responsibility of banks and the gravity of their public mission, we will conduct business in a sound andappropriate manner, with the goal of establishing unshakable trust.

2. Contributing to the economy and to society by providing high-quality services

In addition to the function of providing infrastructure to support economic activity that we have fulfilled from the
beginning, we contribute to the economy and to society, both in Japan and overseas, by providing high-quality
financial services that respond to the needs of users.

3. Compliance with laws, regulations and rules

We comply with laws and regulations as well as with internal rules in the course of executing our business. We respectsocial rules, perform corporate activities with conscientiousness, integrity and fairness.

4. Blocking all relationships with anti-social forces

We resolutely reject illegal demands made by antisocial forces of the kind that threaten the safety and order of society,and will eliminate any and all relationships with them.

5. Proactive communication

In order to obtain wide-ranging understanding and trust from society at large, we will proactively and fairly
disclose business information, make every effort to ensure the soundness of business, and strive to establish broad
communications between the Bank and society.

THE SHIMIZU BANK,LTD.
9

■ Compl
pliiance System

Board of Directors

Instruction

ReportInspection Result
ReportManagement Committee
Instruction

ReportConsult

Corporate Lawyers

Corporate Administration Division Legal Office( Compliance Report System )Audit Division

Centralized Control of Compliance( Anti-social Forces Treatment Department )Anti Money Laundaring'Wire-the-money scam'Legislative Remedy

Inspection
Issues Related to Each Works

Report, Contact, Consult

Divisions in Head Office

Operations Division
Report,Contact,
Consult

Inspection( Compliance Supervisory Department )Discuss

Consult and Compliants treatment
Financial ADR Treatment
Disclose personal Information

Branch Advisory Division

Discuss

Foreign Exchange Trading
Relationship of the taliban and others
Investment Trust Sales, etc

Discuss

Inspection

Markets andInternational Division
Report, Contact, Consult

Block Compliance Supervisor
Block Compliance Officer
Compliance Officer, Manager
All Employees (Bank Clerk, Staff, etc)

Legal and Regulatory Compliance Policy
Bolster Readiness for Legal and Regulatory
Compliance
Regarding the observance of laws and regulations,which the Shimizu Bank and its group companies
have already recognized as a top priority, we willcontinue to foster awareness of compliance and instill
it in all executives and employees at all of our groupcompanies to make sure that they all understand it
and get into the habit of applying it.
Preventing Legal and Regulatory Violations
We have taken action to prevent legal and regulatory
violations by forming a corporate culture which allows
us to detect weaknesses and problem areas in ourefforts toward legal and regulatory compliance,
reflect on past conduct, and make improvements in
those areas promptly.

Branches, Divisions, andGroup Companies, etc

Systems Targeting Anti-social Forces

Due to their public nature and critical economic function, banks are
required to exclude anti-social forces from financial transactions. For thisreason, the Shimizu Bank has created a basic policy that we will standfirmly against anti-social forces which pose a threat to the order andsafety of civic life, and will not provide any favors to such forces.
In addition, at the Shimizu Bank we have given the Corporate
Administration Division the task of collecting, analyzing, and centrally
managing information pertaining to anti-social forces, and haveestablished a system whereby the bank systematically addresses such
issues and excludes anti-social forces from business transactions incooperation with external special agencies including law enforcement
and the national and prefectural centers for the elimination of
boryokudan (violent crime syndicates).
Furthermore, in order to make it clear that we exclude anti-social forcesfrom our business, we have also introduced clauses regarding theexclusion of “boryokudan” crime syndicates in basic loan agreements
and in our rules concerning deposits and other services. We require all
customers to comply with an agreement by which they express and affirm
that they are not associated with any anti-social forces.

Solicitation Policy
In line with the “Act on Sales, etc. of Financial Instruments,” the Bank observes the following matters as its solicitation policy whensoliciting the sale of financial instruments.
❶The Bank works to make appropriate solicitations by referring to customers' knowledge, experience, asset status and purpose forconcluding the agreement.
❷The Bank sufficiently explains significant matters, such as the details and risks of financial instruments.
❸The Bank will not make solicitations that invite misunderstandings through declarative conclusions and the provision of factually
incorrect information.
❹The Bank will not make solicitations during times and in places that are inconvenient.
❺The Bank will work to acquire knowledge of financial instruments so that it may make appropriate solicitations

THE SHIMIZU BANK,LTD.
10

Risk Management System
Because of changes in the surrounding environment of the financial institutions, the risks banks face are increasingly
diverse and have become complex. As financial institutions have the responsibility to safely and effectively manage
the deposits they receive from customers, it is increasingly important to upgrade the risk control system, which is used toproperly control various risks according to their characteristics.
The Shimizu Bank is fully aware of the significance of risk management and endeavors to strengthen our risk management
system.

Risk Management System
The Shimizu Bank stipulated the “Integrated risk management provisions” as basic provisions on risk management, andestablished a risk management system, in which the Board of Directors plays the central role. Based on theprovisions, the Shimizu Bank draws up “Risk Management Regulations” and “Risk Management Procedures” according tovarious risk categories which prescribe the specific management methods, etc., as well as reporting to the Board of
Directors and the Management Committee. The Shimizu Bank formulates its risk management plan every fiscal year tocontrol risks effectively, and identifies, analyzes and assesses risks based on these plans.

■ A Chart of the Integrated Risk Management System

Board of Directors
S

S

Management Committee[Integrated Risk Management Section]
Risk Management Office,Corporate Administration Division

Operational Risk
Credit Risk

Market Risk

Liquidity Risk
Adnimistrative
Risk

System Risk

Legal Risk

Reputational
Risk

Other Risk

Divisions Concerned in Risks

Audit
Division
Risk Management Office, Corporate Administration Division

CreditDivision

Risk
Risk
Management Management
Office,Office,Corporate
Corporate
Admnistration Admnistration
Division
Division

Operations
Division

Operations
Division

Risk
Legal Office, Management
Each Division
Office,Corporate
at
Corporate
Administration
Administration Headquarters
Division
Division

Branches, Headquarters, Consolidated Subsidiaries, etc.

THE SHIMIZU BANK,LTD.
11

Integrated Risk Management

From the perspective of enhancing soundness in management, the Shimizu Bank comprehensively identifies major risks thatthe bank faces, compares them with our corporate strength (equity capital), then establishes a self-controlling type risk
management environment, as well as addressing the tasks of enhancing risk management so as to maintain a properrisk management environment.

Credit Risk Management

The Shimizu Bank collectively administers loans and bills discounted, assets with a credit risk, and off-balance sheet assets,managing credit risk of the Bank itself and its consolidated subsidiaries.
Our screening system is composed of two sections, Sales Promotion and Screening, in order to maintain and improve
the soundness of loan assets. In addition, the Bank strictly manages credits above a certain level by screening andpassing a resolution for financing policy at the Management Meeting, which consists of the Executives.
Moreover, the Bank defined its credit policy (the basic code of conduct for financing) to clarify the bank's basic action
guidance in the loan business, and thoroughly enforces it among our bank clerks, so as to maintain and improve thelevel of our bank clerks' observation of the financing rules.
A credit rating system was introduced to measure the credit risk of borrowers with a unified standard, and it is utilized to
set lending rate guidelines according to creditworthiness. Furthermore, in terms of credit management, the Bank
endeavors to manage appropriate portfolios, to disperse risks, and to ensure stable profits by measuring risk quantities
with the credit rating system, etc. and acknowledging the status of loan concentration in specific business types, etc.

Market Risk Management

The Shimizu Bank manages market risk to securely earn stable profits through market transactions. The Bank has
installed both a front office and back office in the Markets and International Division, as well as a middle office in the
Risk Management Office of the Corporate Administration Division, which is the Department concerned with risk, thus
establishing a system of mutual checks and balances.
The status of measured risks is reported at the Board of Directors and Management Meeting so that the Executives canaccurately acknowledge and appropriately make decisions on the market risks.

Liquidity Risk Management

The Shimizu Bank manages funds daily, weekly, and monthly at the Markets and International Division, which is a fund raising
management section, while the Risk Management Office of the Corporate Administration Division, which is thedepartment concerned with risk, manages the risks.
In addition, as a preparation for contingencies, the Bank set two phases of emergencies and prepares to secure
financing methods according to respective situations.

Operational Risk Management

The Shimizu Bank recognizes administrative risk, system risk, legal risk, reputational risk, and other risks as operational risk;
endeavors to prevent such risks from becoming tangible; and minimizes the impacts caused by such risks when they
become apparent.
Regarding administrative risk, for the purpose of establishing a routine of impartial and swift office work, the Bank has
been improving the quality of office work through the creation of various rules on office work, implementation oftraining programs, and centralization at the headquarters of the branch office work.
In relation to system risk management, the Bank uses as its core banking system “PROBANK-R2” created by Fujitsu Ltd.
We established a backup center for “PROBANK-R2”, reinforcing security against disasters (like the Tokai earthquake),
whose occurrence is a concern. Moreover, the Internal Audit Division audits the computing systems and programs
regularly, auditing system development and the administrative status of system operations, and verifying theeffectiveness of risk management.
The legal risk is the risk in which the Bank suffers losses by violating laws and regulations, etc. The Shimizu Bank places theobservance of laws and regulations, etc. as its priority issue in management to avoid the occurrence of the legal risk,
and vigorously addresses actions to strengthen our preparedness to further observe laws and regulations.
Reputational risk is the risk suffered from unexpected damages by media coverage, etc. about the entire financial
industry and our bank. The Bank takes measures, such as establishing rules and manuals which prescribe our actions, toprevent circulation of unfounded rumors and to respond to them.
The Bank has also established internal control systems to appropriately manage other operational risk, respectively.
In order to be ready for emergency events such as natural disasters, and to continue or swiftly restore our essential
business in order to provide stable financial function to our customers, the Shimizu Bank established an action plan thatassumes the outbreak of a state of emergency, and has built a business continuity management based on this plan.

ALM System

The Shimizu Bank regularly holds Management Meetings, which mainly consist of Executives, and the ALM Earnings
Management Committee which in turn consists of General Managers, to examine proper assets and liability structures,etc. based on the financial and economic environment and forecasts of future interest rates, etc., so that the bankcan fully exert the functions of ALM, with the goal to maximize profits while managing assets and liabilities in an integral
manner balanced with adequate risks.

THE SHIMIZU BANK,LTD.
12

Corporate Data
Consolidated Balance Sheet
AssetsCash and Due from Banks
Trading Securities
Money Held in Trust
Securities
Loans and Bills Discounted
Foreign Exchanges
Lease Receivables and Investments in Leases
Other Assets
Property, Plant and Equipment
Buildings, Net
Land
Leased Assets, Net
Other Tangible Fixed Assets
Intangible Assets
SoftwareLeased Assets
Other Intangible Fixed Assets
Retirement Benefit AssetDeferred Tax Assets
Customers' Liabilities for Acceptances and Guarantees
Allowance for Loan Losses
Total Assets

Liabilities
Deposits
Negotiable Certificates of Deposit
Call Money
Cash Collateral Received for Securities Lent
Borrowed Money
Foreign Exchanges
Other Liabilities
Provision for Bonuses
Retirement Benefit Liability
Provision for Retirement Benefits for Directors(and Other Officers)
Provision for Reimbursement of Deposits
Deferred Tax Liabilities
Acceptances and Guarantees
Total Liabilities
Net Assets
Share Capital
Capital Surplus
Retained Earnings
Treasury Shares
Total Shareholders' Equity
Valuation Difference on Available-for-Sale Securities
Deferred Gains or Losses on Hedges
Remeasurements of Defined Benefit Plans
Total Accumulated Other Comprehensive Income
Share Acquisition Rights
Non-Controlling Interests
Total Net Assets
Total Liabilities and Net Assets(Millions of Yen)

(Millions of Yen)

(Thousands of U.S.Dollars)

March 31,2020

March 31,2021

March 31,2021¥96,769¥216,190575

523

US$1,952,760
4,731

1,200

1,000

9,038

286,740

310,1482,801,450

1,149,987

1,204,283

10,877,821

1,922

1,939

17,51913,41913,628123,101

27,22830,482

275,333

17,817

17,420157,355

7,524

7,169

64,758

9,113

9,113

82,322

6

4

42

1,172

1,132

10,231

682

503

4,550

527

366

3,314

39

19

176

115

117

1,058

-

206

1,861

2,934

2,308

20,853

4,634

4,658

42,075(7,041)(7,897)(71,334)¥1,596,871¥1,795,397

US$16,217,119(Millions of Yen)

(Millions of Yen)

(Thousands of U.S.Dollars)

March 31,2020

March 31,2021

March 31,2021¥1,383,133¥1,490,782

US$13,465,653-

69,400626,862

2,176

-

-

48,473

22,914

206,976

67,472

111,455

1,006,730

1

9

87

6,961

8,172

73,817

468

469

4,238

933

357

3,225

57

47

430

5

-

-

41

60

542

4,634

4,658

42,075

1,514,358

1,708,326

15,430,640

10,816

10,816

97,699

7,648

7,643

69,04462,53464,060578,635

(257)

(248)

(2,243)80,741

82,272

743,135

660

2,991

27,016

27

71

644

(320)

275

2,487

367

3,337

30,147

59

72

655

1,343

1,388

12,53982,512

87,071

786,478¥1,596,871¥1,795,397

US$16,217,119

Notes

1.The Japanese yen figures are rounded down to the nearest one million yen in this financial report.
2.Figures stated in U.S.dollars are translated solely for convenience at the rate of ￥110.71per U.S.$1, the approximate rate of exchange prevailing on March 31,2021.

THE SHIMIZU BANK,LTD.
13

Consolidated Statement of Income
Ordinary Income
Interest Income
Interest on Loans and Discounts
Interest and Dividends on Securities
Interest on Call Loans
Interest on Deposits with Banks
Other Interest Income
Fees and Commissions
Other Ordinary Income
Other Income
Other
Ordinary Expenses
Interest Expenses
Interest on Deposits
Interest on Negotiable Certificates of Deposit
Interest on Call Money
Interest Expenses on Cash Collateral Received for Securities Lent
Interest on Borrowings and Rediscounts
Other Interest Expenses
Fees and Commissions Payments
Other Ordinary Expenses
General and Administrative Expenses
Other Expenses
Provision of Allowance for Loan Losses
Other
Ordinary Profit (Loss)
Extraordinary Losses
Loss on Disposal of Non-Current Assets
Impairment Losses
Profit (Loss) Before Income Taxes
Income Taxes - Current
Income Taxes - Deferred
Total Income Taxes
Profit (Loss)
Profit Attributable to Non-Controlling Interests
Profit (Loss) Attributable to Owners of Parent(Millions of Yen)
Years ended
March 31,2020(Millions of Yen)
Years ended
March 31,2021(Thousands of U.S.Dollars)
Years ended
March 31,2021¥28,974¥27,782

15,35915,531

US$250,952
140,285

11,843

12,502112,931

3,414

2,903

26,227

1

0

1

83

111

1,003

15

13

121

9,767

10,27692,820

3,051

1,195

10,802

795

779

7,043

795

779

7,043

33,20524,307

219,563

946

562

5,079

409

345

3,116

0

1

14

(21)

(1)

(17)

507

178

1,616

36

33

299

14

5

50

5,755

6,008

54,271

3,091

567

5,121

15,673

15,488

139,903

7,738

1,681

15,186

2,190

1,453

13,127

5,547

227

2,059

(4,230)3,475

31,388

45

27

244

0

0

2

45

26

242

(4,276)

3,447

31,143208

1,144

10,340

(575)

95

861

(367)

1,240

11,202(3,908)2,207

19,941

59

44

402

(¥3,968)¥2,163

US$19,538

Consolidated Statement of Comprehensive Income
Profit (Loss)
Other Comprehensive Income
Valuation Difference on Available-for-Sale Securities
Deferred Gains or Losses on Hedges
Remeasurements of Defined Benefit Plans, Net of Tax
Comprehensive Income
Comprehensive Income Attributable to Owners of Parent
Comprehensive Income Attributable to Non-Controlling Interests(Millions of Yen)
Years ended
March 31,2020(Millions of Yen)
Years ended
March 31,2021(Thousands of U.S.Dollars)
Years ended
March 31,2021(¥3,908)¥2,207(2,071)

2,972

US$19,941
26,845(1,949)2,332

21,068

21

43

393

(143)

596

5,384

(5,980)5,179

46,787(¥6,036)¥5,133

US$46,370

56

46

417

Notes

1.The Japanese yen figures are rounded down to the nearest one million yen in this financial report.
2.Figures stated in U.S.dollars are translated solely for convenience at the rate of ￥110.71per U.S.$1, the approximate rate of exchange prevailing on March 31,2021.

THE SHIMIZU BANK,LTD.
14

Consolidated Statement of Changes in Net Assets
Years ended March 31,2020(Millions of Yen)
Shareholders' Equity

Balance at April 1, 2019

Share Capital

Capital Surplus¥10,816¥7,659Retained
Earnings

Treasury Shares

Total
Shareholders'Equity(¥284)¥85,389¥67,198

Changes During Period
Dividends of Surplus
Loss Attributable to Owners of Parent

(694)

(694)

(3,968)(3,968)Purchase of Treasury Shares(11)

Disposal of Treasury Shares

(1)

(1)

27

16

Net Changes in Items Other Than Shareholders' Equity
Total Changes During Period
Balance at March 31, 2020

-

(11)

(4,663)26(4,648)¥10,816¥7,648¥62,534(¥257)¥80,741

Accumulated Other Comprehensive Income
Valuation
Difference on
Available-forSale Securities
Balance at April 1, 2019

¥2,605

Total
Deferred Gains Remeasurements Accumulated
or Losses onof Defined
Other
Comprehensive
HedgesBenefit Plans
Income¥6(¥177)¥2,435

Share
Acquisition
Rights¥58

Non-Controlling
Interests

Total Net Assets¥1,289¥89,173

Changes During Period(694)

Dividends of Surplus(3,968)Loss Attributable to Owners of Parent
Purchase of Treasury Shares(1)

Disposal of Treasury Shares

16(1,945)21(143)(2,068)1

54

Total Changes During Period(1,945)21(143)(2,068)1

54(6,660)

Balance at March 31, 2020

¥660

¥27

(¥320)¥367¥59¥1,343¥82,512

Non-Controlling
Interests

Total Net Assets¥1,343¥82,512Net Changes in Items Other Than Shareholders' Equity

Years ended March 31,2021(2,012)(Millions of Yen)
Shareholders' Equity

Balance at April 1, 2020

Share Capital

Capital Surplus¥10,816¥7,648Retained
Earnings

Treasury Shares

Total
Shareholders'Equity(¥257)¥80,741¥62,534

Changes During Period
Dividends of Surplus

(637)

(637)

Profit Attributable to Owners of Parent

2,163

2,163

Purchase of Treasury Shares(4)

Disposal of Treasury Shares

(0)

(0)

9

5

Net Changes in Items Other Than Shareholders' Equity
Total Changes During Period
Balance at March 31, 2021

-

(4)

1,525

9

1,530

¥10,816¥7,643¥64,060(¥248)¥82,272

Accumulated Other Comprehensive Income
Valuation
Difference on
Available-forSale Securities
Balance at April 1, 2020

¥660

Total
Deferred Gains Remeasurements Accumulated
or Losses onof Defined
Other
Comprehensive
HedgesBenefit Plans
Income¥27(¥320)¥367

Share
Acquisition
Rights¥59

Changes During Period
Dividends of Surplus(637)

Profit Attributable to Owners of Parent

2,163
(0)

Purchase of Treasury Shares

5

Disposal of Treasury Shares
Net Changes in Items Other Than Shareholders' Equity

2,330

43

596

2,970

13

44

3,027

Total Changes During Period

2,330

43

596

2,970

13

44

4,558

Balance at March 31, 2021

¥2,991¥71¥275¥3,337¥72¥1,388¥87,071

Notes

1.The Japanese yen figures are rounded down to the nearest one million yen in this financial report.
2.Figures stated in U.S.dollars are translated solely for convenience at the rate of ￥110.71per U.S.$1, the approximate rate of exchange prevailing on March 31,2021.

THE SHIMIZU BANK,LTD.
15

Consolidated Statements of Changes in Net Assets
Years ended March 31,2021(Thousands of U.S.Dollars)
Shareholders' Equity

Balance at April 1, 2020

Share Capital

Capital Surplus

US$97,699

US$69,086

Retained
Earnings

Treasury Shares

Total
Shareholders'Equity(US$2,329)

US$729,308

US$564,852

Changes During Period
Dividends of Surplus(5,756)(5,756)

Profit Attributable to Owners of Parent

19,53819,538Purchase of Treasury Shares(41)

Disposal of Treasury Shares

(4)

(4)

90

48

Net Changes in Items Other Than Shareholders' Equity
Total Changes During Period
Balance at March 31, 2021

-

(41)

13,78285

13,827

US$97,699

US$69,044

US$578,635(US$2,243)

US$743,135

Accumulated Other Comprehensive Income
Valuation
Difference on
Available-forSale Securities
Balance at April 1, 2020

US$5,963

Total
Deferred Gains Remeasurements Accumulated
or Losses onof Defined
Other
Comprehensive
HedgesBenefit Plans
Income
US$251(US$2,897)

US$3,316

Share
Acquisition
Rights
US$537

Non-Controlling
Interests

Total Net Assets

US$12,139

US$745,302

Changes During Period
Dividends of Surplus(5,756)

Profit Attributable to Owners of Parent

19,538Purchase of Treasury Shares(4)

Disposal of Treasury Shares

48

Net Changes in Items Other Than Shareholders' Equity
Total Changes During Period
Balance at March 31, 2021

21,053393

5,384

26,831

118

399

21,053393

5,384

26,831

118

399

27,23041,176

US$27,016

US$644

US$2,487

US$30,147

US$655

US$12,539

US$786,478

Notes

1.The Japanese yen figures are rounded down to the nearest one million yen in this financial report.
2.Figures stated in U.S.dollars are translated solely for convenience at the rate of ￥110.71per U.S.$1, the approximate rate of exchange prevailing on March 31,2021.

THE SHIMIZU BANK,LTD.
16

Consolidated Statement of Cash Flows
Cash Flows from Operating Activities
Profit (Loss) Before Income Taxes
Depreciation
Impairment Losses
Increase (Decrease) in Allowance for Loan Losses
Increase (Decrease) in Provision for Bonuses
Decrease (Increase) in Retirement Benefit Asset
Increase (Decrease) in Retirement Benefit Liability
Increase (Decrease) in Provision for Retirement Benefits for Directors (and Other Officers)
Increase (Decrease) in Provision for Reimbursement of Deposits
Interest Income
Interest Expenses
Loss (Gain) Related to Securities
Loss (Gain) on Money Held in Trust
Foreign Exchange Losses (Gains)
Loss (Gain) on Disposal of Non-Current Assets
Net Decrease (Increase) in Trading Securities
Net Decrease (Increase) in Loans and Bills Discounted
Net Increase (Decrease) in Deposits
Net Increase (Decrease) in Negotiable Certificates of Deposit
Net Increase (Decrease) in Borrowed Money (Excluding Subordinated Borrowings)
Net Decrease (Increase) in Due from Banks (Excluding Due from Bank of Japan)
Net Decrease (Increase) in Call Money
Net Increase (Decrease) in Cash Collateral Received for Securities Lent
Net Decrease (Increase) in Foreign Exchanges-Assets
Net Increase (Decrease) in Foreign Exchanges-Liabilities
Net Decrease (Increase) in Lease Receivables and Investments in Leases
Interest Received
Interest Paid
Other, Net
Subtotal
Income Taxes Paid
Net Cash Provided by (Used in) Operating Activities(Millions of Yen)
Years ended
March.31,2020(Millions of Yen)
Years ended
March.31,2021(Thousands of U.S.Dollars)

Years ended
March.31,2021(¥4,276)
1,237
45
1,795
(6)
168
(5)
(37)
(15,359)
946
4,853
(13)
2,085
0
60
(27,582)(3,214)(65,220)
(158)
94
2,176
11,019(11)(1)(1,511)
15,839(876)(8,034)(85,988)(246)(86,234)¥3,447
1,150
26
855
0
(206)
(576)
(9)
(5)
(15,531)562(1,065)(9)(2,847)0
51(54,296)
107,648
69,40043,983336(2,176)(25,558)(17)
7(1,302)
15,408(605)
2,809
141,482(333)
141,149

US$31,143
10,391242
7,727
8(1,861)(5,204)(86)(48)(140,285)
5,079(9,619)(83)(25,723)2
469(490,438)
972,348
626,862
397,281
3,035(19,660)(230,862)(156)
71(11,766)
139,182(5,470)25,3791,277,959(3,008)1,274,950(141,632)
121,723
23,345
(100)
12
(297)
(266)
292
3,076

(70,556)
32,941
16,786
209
(385)
(89)
365
(4)
(20,733)(637,309)
297,547
151,623
1,892(3,483)
(806)
3,299
(37)
(187,274)

(25)
(1)
0
(692)
(1)
(721)
(0)
(83,878)
178,756¥94,878

(24)
(0)
0
(634)
(1)
(661)
1
119,756
94,878¥214,634

(219)
(4)
0
(5,731)(17)(5,973)14
1,081,717
856,995
US$1,938,713

Cash Flows from Investing Activities
Purchase of Securities
Proceeds from Sale of Securities
Proceeds from Redemption of Securities
Increase in Money Held in Trust
Decrease in Money Held in Trust
Purchase of Property, Plant and Equipment
Purchase of Intangible Assets
Proceeds from Sale of Property, Plant and Equipment
Payments for Asset Retirement Obligations
Net Cash Provided by (Used in) Investing Activities
Cash Flows from Financing Activities
Repayments of Lease Obligations
Purchase of Treasury Shares
Proceeds from Sale of Treasury Shares
Dividends Paid
Dividends Paid to Non-Controlling Interests
Net Cash Provided by (Used in) Financing Activities
Effect of Exchange Rate Change on Cash and Cash Equivalents
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Period
Cash and Cash Equivalents at End of Period

Notes

1.The Japanese yen figures are rounded down to the nearest one million yen in this financial report.
2.Figures stated in U.S.dollars are translated solely for convenience at the rate of ￥110.71per U.S.$1, the approximate rate of exchange prevailing on March 31,2021.

THE SHIMIZU BANK,LTD.
17

Board of Directors and Executive Officers● Chairman● Directors● Managing Executive Officers

Keiko Higashi*1
Takashi Aizawa*1
Youichiro Ito*1
Yosuke Wakabayashi
Naoyuki Tamura
Masashi Hiraiwa
Nobuhide Fukazawa
Akihiro Mochizuki*2
Kazuaki Isobe*1∙*2
Makoto Kono*1∙*2
Shigeyuki Konagaya*1∙*2(Representative Director)
Katsuichiro Toyoshima● President(Representative Director)
Yasuhiro Iwayama● Senior Managing Director
Ayato Mochizuki● Managing Director

As of June 30,2021

Satoshi Kobayashi
Masahiro Koyanagi● Executive Officers

Yasunobu Sugimoto
Hiroshi Nonomura
Yoshiyasu Ohata
Masaki Suzuki
Yasumasa Oki*1Outside Director*2Audit & Supervisory Committee Members

Fumitoshi Yabuzaki

Organization Chart

As of June 30,2021

General Meeting of Shareholders

Board of Directors

Chairman

Directors
Management Planning
Division

President

Secretariat OfficeBusiness Information Office Tokyo

DeputyBusiness Information Office Nagoya
Bangkok Representative OfficeSenior Managing Director
Managing Director
Counselor

Corporate Administration
Division

Finance Office
Legal OfficeDirectors in Charge

Risk Management Office

Executive Officers
Branch Advisory Division

Customer Services Office
Loan Center

Head Office

Customers

Branches

Solution Sales DivisionMarkets and International
Division

Securities Office

Credit Division

S

OfficeOperations Division

Operations Center Office

General Affairs and Human
Resources Division

Personnel Rating Office

Audit Division

Mt. Fuji
FUJI

MARKETS AND INTERNATIONAL DIVISIONHEAD OFFICENUMAZUSHIZUOKAYAIZU
HAMAMATSU

TEL 81-54-353-5164 SWIFT : SMZGJPJT
https://www.shimizubank.co.jp/

TOKYO
NAGOYATHE SHIMIZU BANK,LTD.
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