THE SHIMIZU BANK,LTD.

Annual Report 2013

ProfileThe Shimizu Bank, Ltd. was establishedin 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 the prefecture.
Shimizu Port, located halfway between
Tokyo and Osaka, plays a significant
role in international trade andeconomic development.
We will provide customers with a wide
range of financial services, seek further
business expansion as a customerfriendly bank and contribute to thedevelopment of the local community.

Bank Data

Head Office

As of March 31, 2013

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

Date of Incorporation:
July 1, 1928
Paid-up Capital:¥8,670,500,000
Number of Branches:78
Number of Sub-branches:1
Number of Employees:
1,007
Consolidated Capital Adequancy Ratio(based on domestic standards): 10.51%
Non-Consolidated Capital Adequancy Ratio(based on domestic standards): 10.10%

Consolidated Subsidiaries

As of June 30, 2013

CapitalName of Company(Millions of Yen)

Ratio of Voting
Right

Ratio of Voting Right
Other Group

EstablishedLine of BusinessCompanies
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 Lease and Card Co., Ltd.

60

16.01%

45.32%

April 14, 1999

Leasing, Factoring, Credit card

The Shimizu Credit Guarantee Co., Ltd.

50

5.00%

90.00%

November 1, 1978

Credit guaranteeing

The Shimizu General Computer Service Co., Ltd.

30

5.45%

45.45%

July 1, 1989

Calculation operations

The Shimizu Regional Economy Research Center, INC

1235.84%

64.15%

October 28, 1965

Financial and economic
research services, Training

THE SHIMIZU BANK , LTD.
1

MessageThank you very much for your continuing trust andCapital investments showed signs of recovery because

patronage to the Shimizu Bank. We created a disclosureof manufacturers’ sound investment in strengthening/

document this year again, making you feel at ease inmaintaining/ upgrading production capacities, soundusing our Bank group. We would greatly appreciate it if

investment in business continuity plans, as well as steadyyou could review this document, as it includes theurban redevelopment investments. Moreover, thesummary of our settlement of accounts in the period, thedesignation of the “Inland Frontier Initiative” withbusiness environment surrounding our bank, and will

Comprehensive Special Zones in February 2013 brought

enrich your understanding of our bank group further.

prospects that the bases of distribution and food-related
businesses would take hold and agriculture promotion

In the Japanese economy in the period, foreign demand

would progress in the inland region around thedecreased due to the sluggish overseas economy andShin-Tomei Expressway, which created a positive

the continued high yen, and production activities, mainly

atmosphere for economic recovery. Regarding

at export-oriented companies, continued to stagnate in

consumer spending, there are some moves towards

the first half of the period. In the second half of the period,

improvement, such as an increase in housing starts due

the business conditions of primarily large businesses

to a prospective increase in consumption tax, and sales

showed recovery, because the strong yen had been

recovery in high-ticket items backed by the asset effects

adjusted due to the sense of hope toward the economicof high stock prices.

policies of the new government, the recovery of the U.S.
economy, and an increase in demand from AsianIn this environment, we have been implementing various

countries, including Indonesia, Thailand and Taiwan.

measures, by making “reinforcing marketing,” “strength-

Moreover, consumer spending has been improving, sinceening human resource development,” “reforming

bright spots for the income environment were witnessed,

business operations,” and “enhancing organizational

including improvement in business sentiment backed bystrength” as our basic policies in the 24th medium-termhigh stock prices and the moves towards wage increases

management plan, “Bold Advancement.” We areat some companies.

making efforts to create more time for business meetings
with our clients through complete work restructuring, andRegarding the economy in Shizuoka prefecture, which isfostering many human resources who can find the best

the primary base of the Shimizu Bank, production activities

solutions for clients based on the trusting relationshipbecame sluggish because of a downturn in foreign

which we have been established. We shall develop

demand and policy effects such as subsidies put into

marketing in which we are always available for clients, inplace for purchasing ecologically friendly cars. However,which we worry and think together with clients, so thattoward the second half of the period, the businesseach one of the executives and staff shall demonstrateconditions of automobiles, automotive parts, and electro-

the significance of our existence. Also, in order to bemechanical industries recovered due to an increase inable to stably provide high quality financial services, we

exports triggered by the weakened yen as the market

shall enhance organizational strength to demonstrateentered correction phase.

the significance of the existence of our bank, andestablish community-based finance.
All directors and employees shall continue ourconcerted efforts to further deserve your trust, and shall
implement various measures to improve businessperformance.
Your continued support and patronage will be greatly
appreciated.
July 2013

Noriji Yamada
Chairman

Katsuichiro Toyoshima
President
THE SHIMIZU BANK , LTD.
2

The 24th Medium-term Management Plan

From April 1, 2012 toMarch 31, 2014 (Two years)

Bold Advancement 《 Demonstrate the significance of our existence 》
In the 24th medium-term management plan, while further promoting the expansion of sound relationships with customers andkeeping its 90th anniversary of foundation in mind, we shall build a trusting relationship with clients by proposing their best solutions
and establishing community-based finance, in order to “demonstrate the significance of our existence” for individual customers in
Shizuoka prefecture.

We named its 24th medium-term management plan “Bold Advancement” because each one of all directors and employees shalltake a bold approach toward realization of “demonstrating the significance of our existence.”
We set a management goal to “exercise strong on-site capability further by superb human resources and a robust organization so as toestablish community-based finance,” and achieve “demonstrating the significance of our existence” by steadily carrying out the“basic policy in management” and “key measures.”Management
philosophy

Value social and public interests and pursue sound management of the company.
Make the Shimizu Bank which is familiar to, appreciated by, and useful for customers.
Create a workplace where workers respect personal relationships andare satisfied with their job requirements.

Ideal goals“Demonstrate the significance of our existence”

Management
goals“Exercise strong on-site capability further by superb human resources anda robust organization so as to establish community-based finance.”

Basic policy inmanagement

1) Reinforcing marketing, 2) Strengthening human resource development,
3) Reforming business operations, 4) Enhancing organizational strength

1) Reinforcing marketing

2) Strengthening humanresource development[ Promotion in the corporate
sector business ][ Revision of the personnel system ][ Reviewing the block system andmeasures at branch offices ]Key measures3) Reforming business
operations[ Strengthening OJT ]Demonstrate
the significanceof our existence[ Promotion in the retail sectorbusiness ][ Reinforcing the training
system ]“Exercise strong on-site

capability further by superb

4) Enhancing
organizational strength

human resources and a robust
organization so as to establish[ Creation of sales staff bystreamlining business
operations ]community-based
finance.”[ Creation of business hours bystreamlining business
operations ][ Enhancing functions ofaffiliated companies][ Advancing the business
management attitude ][ Cost reduction ]Support for Overseas Business Development
We made our efforts to meet the customer needs of overseas business development through expansion of external
network. In the fiscal year 2012, we formed a business alliance with Bank Negara Indonesia and State Bank of India under
MOU with Japan Bank for International Cooperation(JBIC).
As a result, we handle 58 cases of support for overseas business development in this period.

Customer

Consultation■Trade business■Overseas business■Overseas information

AdviceTHE SHIMIZU BANK【Support for overseas business 】●Provision of information●Business support●Consultation etc.
【Support for foreign exchange】●Foreign exchange（Remittance, L/C）
●Trade consultation etc.
Introduction, visit with an expert●Provision of information●Business support●Consultation

Consultation

External network■Shizuoka International Business
Association（SIBA）■Daiwa Securities Co, Ltd.

Advice■Cooperators under MOU with the Japan
Bank for International Cooperation（JBIC）
・Kasikorn Bank（Thailand）
・Bank Negara Indonesia（Indonesia）
・State Bank of India（India）■Major consulting company

Information of various seminars and subsidy, Latest information of market trends and laws and regulations
Business conference with overseas buyers, On-site inspection
Trade consultation, Import and export transactions, Advice for establishment of overseas subsidiary etc.

THE SHIMIZU BANK , LTD.
3

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 been using a corporate logo
since 1974 whose design includes images of Mt. Fuji and Gulf of Suruga.
It was decided this year that Mt. Fuji would be inaugurated 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.
4

Management Environment and Financial Results
Environment of Financial Economy

In the Japanese economy in the period, foreign demand
declined due to the sluggish overseas economy andcontinued high yen, and production activities, mainly at
export-oriented companies, continued to stagnate in thefirst half of the period. In the second half of the period, thebusiness conditions of primarily large businesses showed
recovery, because the strong yen had been adjusted dueto the sense of hope toward the economic policies of the
new government, the recovery of U.S. economy, and anincrease in demand from Asian countries, includingIndonesia, Thailand and Taiwan. In addition, consumer
spending has been improving, since bright spots for theincome environment were observed, including improvement in business sentiment backed by high stock prices
and the moves towards wage increases at some companies.
Regarding the economy in Shizuoka prefecture, which isthe primary base of the Shimizu Bank, production activities
became stagnant because of a downturn in foreign
demand and policy effects such as subsidies put into place
for purchasing ecologically friendly cars. However, toward
the second half of the period, the business conditions ofautomobiles, automotive parts, and electromechanicalindustries recovered due to an increase in exports triggeredby the weakened yen as the market entered a correction
phase. Capital investments showed signs of recovery
because of manufacturers’ healthy investment instrengthening/ maintaining/ upgrading production
capacities, sound investment in business continuity plans, aswell as steady urban redevelopment investment. Moreover,the designation of the “Inland Frontier Initiative” with
Comprehensive Special Zones in February 2013 broughtprospects that the bases of distribution and food-related
businesses would take hold and agriculture promotion

Consolidated Results

Operating income was JPY 29.636 billion, an increase of JPY
331 million from the previous term, because of an increasein profits from service transactions. Operating expenses
were JPY 26.118 billion, an increase of JPY 1.267 billion fromthe previous term, because of an increase in the provisionof allowance for doubtful accounts. Consequently,
operating profit resulted in JPY 3.518 billion, a JPY 935 million
decrease from the previous term.
Deposits increased to JPY 1,346 billion, an increase of JPY
40.8 billion from the end of the preceding term, as a resultof our efforts to expand the business base in the local
community. The total of personal assets under management reached JPY 1,027.4 billion, an increase of JPY 22.5
billion from the end of the last fiscal year, due to soundConsolidated Five-year Summary

would progress in the inland region around the Shin-Tomei
Expressway, which created a positive atmosphere for
economic recovery. Regarding consumer spending, there
are some moves towards improvement, such as anincrease in housing starts due to a prospective increase in
consumption tax, and sales recovery in high-ticket items
backed by the asset effects of high stock prices.
Concerning the financial environment, the Nikkei Stock
Average plunged to the JPY 8,000 level in the first half ofthe fiscal year. However, due to expectations toward
economic stimulus measures such as implementation of
additional monetary easing measures by the Bank ofJapan, which aims to break away from the deflationary
economy, and the fiscal policy of the national government,
the stock price was restored to the pre-Lehman Shock levelof JPY 12,000 by the end of the term. The long-term interest
rate kept falling toward the term end, reaching a historicallow.

sales of investment trust and other financial products whileaccommodating the diversifying needs of customers.
On account of positively meeting capital demands fromlocal customers as a regional banking institution, loans forsmall and medium-sized enterprises increased, so that
outstanding loans and discounts became JPY 1,011.3
billion, an increase of JPY 36.5 billion from the end of theprior period.
Outstanding securities decreased by JPY 53.8 billion fromthe previous year-end to JPY 284.8 billion, as a result of agile
securities management while watching market trends.

Millions of Yen
2011

2009

2010

2012

2013

Operating Income¥32,320¥29,863¥30,788¥29,304¥29,636

Operating Profit(Loss)(6,246)

3,631

3,545

4,453

3,518

Net Income (Loss)(6,285)

3,449

3,037

1,636

2,430

-

-

843

3,755

5,868

Net Assets

61,461

66,43966,702

69,87974,432

Total Assets

1,334,308

1,353,833

1,416,408

1,408,745

1,488,023

Net Assets per Share in Yen

6,173.01

6,691.82

6,703.33

7,026.55

7,571.05

Net Income (Loss) per Share in Yen(658.35)

361.42318.34171.53254.72Comprehensive Income

THE SHIMIZU BANK , LTD.
5

Non-consolidated Results
Operating income was JPY 24.905 billion, an increase of JPY 398 million compared to the previous term, due
to an increase in profits from service transactions. Operating expenses increased by JPY 1.35 billion from theprior year to JPY 21.666 billion due to an increase in the provision of allowance for doubtful accounts.
As a result, operating profit was JPY 3.238 billion, a decrease of JPY 952 million compared with the previous
term.
Non-Consolidated Five-year Summary

Millions of Yen
2011

2009

2010

2012

2013

Operating Income¥26,541¥24,423¥25,333¥24,506¥24,905

Operating Profit(Loss)(6,383)

3,423

3,265

4,191

3,238

Net Income (Loss)(6,276)

3,438

3,078

1,644

1,824

Common Stock

8,670

8,670

8,670

8,670

8,670

Net Assets

58,326

63,25063,394

66,47871,060Total Assets

1,324,850

1,345,707

1,409,868

1,402,363

1,482,692

Deposits

1,222,050

1,255,582

1,292,464

1,309,404

1,350,435

Loans and Bills Discounted

955,885

966,350

969,457

979,7311,017,400

Securities

240,132

253,928

295,382338,770

285,174

Net Assets per Share in Yen

6,110.52

6,627.46

6,643.52

6,967.52

7,448.37

Cash Dividends per Share in Yen
Net Income(Loss) per Share in Yen( Millions of Yen )

60

60

60

60

360.30322.61

172.37191.24( Millions of Yen )Deposits
1,400,000

60(657.42)Net Income(Loss)

5,000

1,050,000
1,350,435

4,000

1,350,000

1,017,400

1,000,000
1,309,404
1,300,000( Millions of Yen )Loans and Bills Discounted

1,292,464

969,457

3,000

979,731

3,078

2,000

950,000
1,250,000

1,644

1,824

1,000
0

900,000

1,200,000
2011

2012

2013

2011

2012

2013

Credit Rating
Credit rating is assigned to debts as follows:
Concerning the relevant debt, a credit rating agency,
which is a fair and disinterested third party, rates thecertainty of payment of its principals and interest on acontractual basis, and such rating is represented using asimple code.

Issues We Need to Address
We have been enhancing its regional presence andproviding meticulous financial services based on the
deep relationship with our regional customers. However,when looking toward the future, there is concern thatthe environment surrounding the regional financial
institutions will be increasingly severe in the future, as thecompetition among financial institutions intensifies
because of changes in the social structure due to a
population decrease, and longevity coupled with a lowbirth rate.
With this recognition, we have been implementing
various measures, by making “reinforcing marketing,”“strengthening human resource development,” “reforming business operations,” and “enhancing organizational
strength” as our basic policies in the 24th medium-term
management plan, “Bold Advancement.” We aremaking efforts to create more time for business meetings

2011

2012

2013

AAA
AA
A
BBB

A

BB

Credit Rating : A
Relevant Debt : Long-term
Preferred Debt
Credit Rating Agency : Japan Credit Rating
Agency, Ltd.
(As of March 31, 2013)

B
CCC
CC
C
D

with our clients through complete work restructuring, andfostering many human resources who can find the bestsolutions for clients based on the trusting relationshipwhich we have been established. We shall develop
marketing in which we are always available for clients, inwhich we worry and think together with clients, so thateach one of the executives and staff shall demonstrate
the significance of our existence. Also, in order to beable to stably provide high quality financial services, weshall enhance organizational strength to exert thesignificance of the existence of our bank, and establish
community-based finance.
Furthermore, we shall have full awareness of our social
responsibilities as a regional financial institution, enhancecustomer reliance and satisfaction through corporate
compliance, and devote ourselves further to establishinga robust business base.

THE SHIMIZU BANK , LTD.
6

Corporate Data
Consolidated Balance Sheets(Millions of Yen)

(Millions of Yen)

(Thousands of U.S.Dollars)

March 31,2012

March 31,2013

March 31,2013

AssetsCash and Due from Banks
Call Loans
Trading Account Securities
Money Held in Trust
Securities
Loans and Bills Discounted
Foreign Exchanges
Lease Receivables and Investment Assets
Other Assets
Tangible Fixed Assets
Buildings
Land
Lease Assets
Construction in Progress
Other Tangible Fixed Assets
Intangible Fixed Assets
SoftwareLease Assets
Others Intangible Fixed Assets
Deferred Tax Assets
Customers' Liabilities for Acceptances andGuarantees
Allowance for Possible Loan Losses
Total Assets

Liabilities
Deposits
Negotiable Certificates of Deposit
Call Money
Borrowed Money
Foreign Exchanges
Bonds with Notes
Bonds with Warrants
Other Liabilities
Reserve for Employees' Bonus
Reserve for Employees' Retirement Benefits
Reserve for Directors' Retirement Benefits
Reserve for Reimbursement of Deposits
Acceptances and Guarantees
Total Liabilities

Net Assets

Common Stock
Capital Surplus
Retained Earnings
Treasury Stock
Total Shareholders' Equity
Net Unrealized Gain (Loss) on Securities
Available for Sale,Net of Taxes
Net Deferred Gain(Loss) on Hedging
Instruments,Net of Taxes
Total Accumulated Other Comprehensive Income
Minority Interests
Total Net Assets
Total Liabilities and Net Assets¥59,457
155
1,800
338,755
974,814
761
8,585
6,291
20,93010,356
9,033
483
8
1,048
1,063
673
67
321
4,144

¥87,63170,000206
1,800
284,899
1,011,388
724
9,194
5,832
20,472
10,066
9,081
345
0
978
954
686
38
230
1,780

US$931,751
744,284
2,195
19,1393,029,230
10,753,730
7,707
97,76162,012
217,682
107,029
96,5633,678
5
10,405
10,153
7,301
405
2,446
18,926

3,194(11,208)
1,408,745

3,077(9,938)1,488,023

32,724(105,674)
15,821,625(Millions of Yen)

(Millions of Yen)

(Thousands of U.S.Dollars)

March 31,2012

March 31,2013

March 31,2013¥1,305,199
821
4,830
32
8,000
5,999
6,858
566
3,235
100
27
3,194
1,338,865¥1,346,000
31,900
3,978
4,046
10
8,000
5,999
6,683
559
3,190
110
35
3,077
1,413,591

US$14,311,541
339,181
42,30043,021
106
85,061
63,78571,0605,949
33,9281,173
375
32,72415,030,208

8,670
5,272
51,766(285)
65,4238,670
5,272
53,624(287)
67,27992,19056,063570,165(3,056)715,362

1,617

4,951

52,648

(0)
1,617
2,838
69,8791,408,745

(0)
4,951
2,201
74,432
1,488,023(0)52,647
23,405
791,416
15,821,625

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 ¥94.05 per U.S.$1, the approximate rate of exchange prevailing on March 31, 2013.

THE SHIMIZU BANK , LTD.
7

Consolidated Statements of Income

Operating 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 Operating Income
Other Income
Recovery of Written-off Claims
OthersOperating Expenses

Interest Expenses
Interest on Deposits
Interest on Negotiable Certificates of
DepositInterest on Call Money
Interest on Borrowings and Rediscounts
Interest on Bonds and Notes
Interest on Bonds with Warrants
Other Interest Expenses
Fees and Commissions
Other Operating Expenses
General and Administrative Expenses
Other Expenses
Provision for Possible Loan Losses
OthersOperating Profit (Loss)
Extraordinary Profit

Gain on Disposal of Fixed Assets
Gain on Bargain Purchase

Extraordinary Loss

Loss on Disposal of Fixed Assets
Impairment Loss
Income Before Income Taxes and Minority Interests
Income Taxes - Current
Income Taxes - Deferred
Total Income Taxes
Income Before Minority Interests
Minority Interests in Income
Net Income(Millions of Yen)

(Millions of Yen)

(Thousands of U.S.Dollars)

Years ended
March 31, 2012

Years ended
March 31, 2013

Years ended
March 31, 2013

¥29,304
19,022
16,395
2,558
55
5
7
7,933
2,095
252
1
250
24,8501,397
1,096¥29,636
18,51915,709
2,726
64
2
16
7,961
2,466
689
4
684
26,1181,197
927

US$315,110
196,909
167,028
28,987689
24
179
84,64926,224
7,327
49
7,277
277,703
12,730
9,863

0
48
63
169
5
13
4,691
36
17,569
1,156
416
739
4,453
197
197
159
53
105
4,491
324
2,430
2,754
1,737
100
1,636

5
14
51
169
5
22
4,574
296
17,366
2,683
1,654
1,029
3,518
518
518
107
2
104
3,928
663
713
1,377
2,551
120
2,430

54
156
548
1,800
63
244
48,6393,152
184,647
28,533
17,591
10,94237,406
5,507
5,507
1,142
31
1,110
41,772
7,057
7,589
14,64627,126
1,286
25,840Consolidated Statements of Comprehensive Income(Millions of Yen)

(Millions of Yen)

(Thousands of U.S.Dollars)

Years ended
March 31, 2012

Years ended
March 31, 2013

Years ended
March 31, 2013

Income Before Minority Interests¥1,737¥2,551

US$27,126

Other Comprehensive Income

2,018

3,317

35,275

2,017

3,317

35,274

Net Unrealized Gain (Loss) on Securities
Available for Sale,Net of Taxes
Net Deferred Gain(Loss) on Hedging
Instruments, Net of Taxes
Comprehensive Income

1

0

1

3,755

5,868

62,402

3,652

5,760

61,251

103

108

1,150

Comprehensive Income Attributable to
Owners of the Parent
Comprehensive Income Attributable to
Minority Interests

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 ¥94.05 per U.S.$1, the approximate rate of exchange prevailing on March 31, 2013.

THE SHIMIZU BANK , LTD.
8

Consolidated Statements of Changes in Net Assets(Millions of Yen)

(Millions of Yen)

(Thousands of U.S.Dollars)

Years ended
March 31, 2012

Years ended
March 31, 2013

Years ended
March 31, 2013

Shareholders' Equity
Common Stock
Balance at the Beginning of Current Period¥8,670¥8,670

US$92,190

Changes of Items During the Period
Total Changes of Items During the Period
Balance at the End of Current Period

-

-

-

8,670

8,670

92,190

5,272

5,272

56,063

Capital Surplus
Balance at the Beginning of Current Period
Changes of Items During the Period
Total Changes of Items During the Period
Balance at the End of Current Period

-

-

-

5,272

5,272

56,06350,702

51,766550,412Retained Earnings
Balance at the Beginning of Current Period
Changes of Items During the Period
Dividends from Surplus

(572)

(572)

(6,086)Net Income

1,636

2,430

25,840Total Changes of Items During the Period

1,064

1,857

19,75351,76653,624570,165

(282)

(285)

(3,038)Purchase of Treasury Stock

(3)

(1)

(18)

Total Changes of Items During the Period

(3)

(1)

(18)

(285)

(287)

(3,056)64,36365,423

695,628

Balance at the End of Current Period
Treasury Stock
Balance at the Beginning of Current Period
Changes of Items During the Period

Balance at the End of Current Period
Total Shareholders' Equity
Balance at the Beginning of Current Period
Changes of Items During the Period
Dividends from Surplus

(572)

(572)

(6,086)Net Income

1,636

2,430

25,840

(3)

(1)

(18)

1,060

1,856

19,73465,42367,279715,362

(396)

1,617

17,200Net Changes of Items Other Than Shareholders' Equity

2,014

3,333

35,447

Total Changes of Items During the Period

2,014

3,333

35,447

1,617

4,951

52,648

(1)

(0)

(2)

Net Changes of Items Other Than Shareholders' Equity

1

0

1

Total Changes of Items During the Period

1

0

1

(0)

(0)

(0)

(398)

1,617

17,198Net Changes of Items Other Than Shareholders' Equity

2,015

3,334

35,449Total Changes of Items During the Period

2,015

3,334

35,449Balance at the End of Current Period

1,617

4,951

52,647

Balance at the Beginning of Current Period

2,737

2,838

30,179Net Changes of Items Other Than Shareholders' Equity

101

(637)

(6,773)

Total Changes of Items During the Period

101

(637)

(6,773)

2,838

2,201

23,40566,702

69,879743,005

Purchase of Treasury Stock
Total Changes of Items During the Period
Balance at the End of Current Period

Accumulated Other Comprehensive Income
Net Unrealized Gain (Loss) on Securities Available for Sale, Net of Taxes
Balance at the Beginning of Current Period
Changes of Items During the Period

Balance at the End of Current Period
Net Deferred Gain (Loss) on Hedging Instruments, Net of Taxes
Balance at the Beginning of Current Period
Changes of Items During the Period

Balance at the End of Current Period
Total Accumulated Other Comprehensive Income
Balance at the Beginning of Current Period
Changes of Items During the Period

Minority Interests

Changes of Items During the Period

Balance at the End of Current Period

Total Net Assets
Balance at the Beginning of Current Period
Changes of Items During the Period
Dividends from Surplus

(572)

(572)

(6,086)Net Income

1,636

2,430

25,840

(3)

(1)

(18)

2,116

2,696

28,675Purchase of Treasury Stock
Net Changes of Items Other Than Shareholders' Equity
Total Changes of Items During the Period
Balance at the End of Current Period

3,177

4,553

48,41069,87974,432

791,416

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 ¥94.05 per U.S.$1, the approximate rate of exchange prevailing on March 31, 2013.

THE SHIMIZU BANK , LTD.
9

Consolidated Statements of Cash Flows(Millions of Yen)

(Millions of Yen)

(Thousands of U.S.Dollars)

Years ended
March.31, 2012

Years ended
March.31, 2013

Years ended
March.31, 2013

¥4,491¥3,928

US$41,772

1,454

1,413

15,030

105

104

1,110

-

(518)

(5,507)(1,639)(1,270)(13,505)

0

(6)

(71)

(24)

(44)

(470)

Increase (Decrease) in Reserve for Directors' Retirement Benefits

13

9

102

Increase (Decrease) in Reserve for Reimbursement of Deposits

(1)

8

87

(19,022)(18,519)(196,909)

Cash Flows from Operating Activities
Income Before Income Taxes and Minority Interests
Depreciation and Amortization
Impairment Loss
Gain on Bargain Purchase
Increase (Decrease) in Allowance for Possible Loan Losses
Increase (Decrease) in Reserve for Employees' Bonuses
Increase (Decrease) in Reserve for Employees' Retirement Benefits

Interest Income

1,397

1,197

12,730(1,689)(1,929)(20,519)

Loss (Gain) on Money Held in Trust

(13)

(14)

(153)

Loss (Gain) on Disposal of Fixed Assets

(143)

2

31

Net Decrease (Increase) in Trading Account Securities

(40)

(50)

(539)

Net Decrease (Increase) in Loans and Bills Discounted(10,631)(36,573)(388,876)

16,90040,801

433,823(16,250)

31,900339,181

(182)

(784)

(8,339)

813

(62)

(660)

Net Decrease (Increase) in Call Loans

10,000(70,000)(744,284)

Net Increase (Decrease) in Call Money(10,452)

3,156

33,561

(371)

36

392

24

(22)

(241)

Interest Expenses
Loss (Gain) on Securities

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 Other than the Bank of JapanNet Decrease (Increase) in Foreign Exchange Assets
Net Increase (Decrease) in Foreign Exchange Liabilities

(313)

(485)

(5,158)Interest Received

18,68318,194

193,455

Interest Paid

(1,696)(1,437)(15,281)

Other, net

1,076(4,271)(45,415)

Subtotal(7,511)(35,236)(374,655)

Net Decrease (Increase) in Lease Receivables and Investment Assets

Income Taxes Paid
Net Cash Provided by (Used in) Operating Activities

(84)

(452)

(4,812)(7,595)(35,688)(379,467)

Cash Flows from Investing Activities(249,204)(232,793)(2,475,207)

Proceeds from Sales of Securities

150,619

243,530

2,589,373

Proceeds from Maturities of Securities

60,45954,810582,781

Increase in Money Held in Trust

(300)

-

-

Decrease in Money Held in Trust

14

14

152

Purchases of Tangible Fixed Assets

(345)

(670)

(7,126)

Purchases of Intangible Fixed Assets

(285)

(222)

(2,362)

402

111

1,180

-

(221)

(2,353)(38,640)

64,559686,438

Purchases of Securities

Proceeds from Sales of Tangible Fixed Assets
Purchases of investments in subsidiaries
Net Cash Provided by (Used in) Investing Activities

Cash Flows from Financing Activities
(571)

(571)

(6,072)

Cash Dividends Paid to Minority Shareholders

(2)

(2)

(25)

Purchases of Treasury Stock

(3)

(1)

(18)

Repayments of Lease Liabilities

(170)

(174)

(1,852)Net Cash Provided by (Used in) Financing Activities

(748)

(749)

(7,968)

4

(9)

(99)

Net Increase (Decrease) in Cash and Cash Equivalents(46,980)

28,111

298,902

Cash and Cash Equivalents at Beginning of Period

105,188

58,207

618,902

Cash and Cash Equivalents at End of Period

58,20786,319917,804

Cash Dividends Paid

Effect of Exchange Rate Changes on Cash and Cash Equivalents

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 ¥94.05 per U.S.$1, the approximate rate of exchange prevailing on March 31, 2013.

THE SHIMIZU BANK , LTD.
10

Board of Directors and Corporate Auditors••

Managing Directors
Masaki Sano

Chairman(Representative Director)
Noriji Yamada•

Shigeru Nonoyama••

President(Representative Director)
Katsuichiro Toyoshima

Naoki Tobayama

Senior Managing Director
Akihiro Mochizuki•

Managing Executive Officers
Hiroshi Inaba
Akihiro Sei

Toshiaki Iwaoka

Shoichi Tanaka

Keisuke Takeshita

Directors
Sumiko Suzuki•

Corporate Auditors
Kazuhito Kobayashi

Naoyuki Shirakawa

As of June 30, 2013

Tetsuya Iikawa

Fujio Kaneda

Syunji Usami

Youichiro Ito

Syuji Sano
Fumitoshi Yabuzaki

Ayato Mochizuki

Organization Chart

As of March 31, 2013

General Meeting of Shareholders

Board of Directors

Chairman

Directors

Auditors

Management Planning
Division

Business Information Office Nagoya

President

Senior Managing Director

Corporate Administration
Division

Directors in Charge
Executive Officers

Finance Office
Legal Office

Managing Director
Counselor

Secretariat OfficeBusiness Information Office TokyoManagement Committee
Deputy President

Board of Auditors

Risk Management Office
General Affairs and Human
Resources Division

Personnel Rating Office

Career Development Division

Head OfficeBusiness Planning Division

Branches
Branch Advisory Division

Customer

Customer Services Office
Loan Center

Markets and International
Division

Securities Office

Credit DivisionCorporate Support Division
Operations Division

Operations Center Office
Loan Administration OfficeInternal Audit Division

FUJI

MARKETS AND INTERNATIONAL DIVISIONTEL 81-54-353-5164 SWIFT : SMZGJPJT
http://www.shimizubank.co.jp/

HEAD OFFICENUMAZUSHIZUOKAYAIZU
HAMAMATSUTOKYO
NAGOYATHE SHIMIZU BANK , LTD.
11