Annual Report 2023

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, 2023

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:
1892
Number of Employees:
Consolidated Capital Adequacy Ratio(based on domestic standards): 8.69%
Non-Consolidated Capital Adequacy Ratio(based on domestic standards): 8.47%

Consolidated Subsidiaries

As of March 31, 2023

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 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

Top Message / Medium-term Management Plan

With love for the
local community,
we consider andco-create thefuture together
with our customers.
Yasuhiro Iwayama
President andRepresentative
Director

Looking Back Over the 27th Medium-term Management Plan
We positioned our 27th Medium-term Management Plan “ZENSHIN – Building Bridges – ,” launched in April
2020, as the first phase toward our 100th anniversary, and as an important period to raise our level ofprofitability, and have rolled out the various measures. We have strengthened systems supporting ourcustomers through collaboration between sales branches and headquarters, including establishing the
Corporate Support Office, which provides prompt and detailed cash management and business
improvement support to corporate customers, and the Solution Sales Division, which has specialists inspecialized fields such as business succession and M&A. We have also started handling sustainable finance,and have been working to provide funds in support of achieving a sustainable society. For our retailcustomers, we have reviewed financial products and services that contribute to asset creation to meet awide range of needs at different life stages, and we have expanded our inheritance-related services tohelp customers pass on their assets smoothly.
As a result, despite growth in core business earnings such as interest on loans and discounts, and corporate
service revenues, core operational net profit fell short of the target figure for the final fiscal year of the plandue to an increase in interest expenses associated with rising overseas interest rates. The balance of loans tosmall to medium-sized companies remained strong, achieving the target. The consolidated capital
adequacy ratio remained above the target 8%, despite a trend increase in the amount of risk-weighted
assets due to our proactive response to the financing needs of small to medium-sized companies in
Shizuoka Prefecture. Although some targets were not achieved due to market factors, we believe that wehave made steady progress in increasing the level of profitability, particularly in interest on loans anddiscounts, and fees and commissions.

THE SHIMIZU BANK,LTD.
2

Top Message / Medium-term Management Plan

Medium-term Management Plan “ZENSHIN – Building Bridges –”-- Basic Policies and Target Figures
Basic policies

Pursuing customeroriented businessMaximizing the powerof human resources

Strengthening thebusiness baseTarget figures

Core operational net profit<Final fiscal year of the plan>¥3 billion or more
TargetTotal loans to small to
medium-sized companies<Final fiscal year of the plan>¥1 trillion or more

Actual (100 millions of yen)

Target<Final fiscal year of the plan>

8% or more

Actual (100 millions of yen)

9,951
30

27

9,770

24

10,000

Actual (%)

Target9.03

10,16441
36
25

Consolidated capital
adequacy ratio

8.00

8.95

8.69

8.00

8.00

9,750

9,500

FYE March 31,
2021

FYE March 31,
2022

FYE March 31,
2023

FYE March 31,
2021

FYE March 31,
2022

FYE March 31,
2023

FYE March 31,
2021

FYE March 31,
2022

FYE March 31,
2023

Establishing our Purpose
In formulating the 28th Medium-term Management Plan, we formed a project team including young
employees from the headquarters and sales branches for cross-organizational discussions. The environment
surrounding financial institutions remains uncertain due to the effects of monetary tightening around theworld. Turning to look at the local economy, in addition to shrinking and aging population with fewer
children expected in the medium- to long-term, we face a range of changes, such as balancing infectious
disease control and economic activity, responding to the advance of digitalization, and building adecarbonized society, and the issues facing our customers are growing increasingly sophisticated anddiverse. Recognizing this, the project team held discussions and decided to take a fresh look at thesignificance of the Bank’s presence in society in these rapidly changing times, and to clearly define thesignificance of the Bank’s existence in the community and its aspirations for the future in the form of a
Purpose. Purpose: “With love for the local community, we consider and co-create the future together withour customers” expresses our desire, as a bank with its main business base in Shizuoka Prefecture, to know
our customers well from the past to the present, to consider a sustainable future together with ourcustomers, and with them co-create their future and that of our community.

Management
Philosophy

1. Promote sound management that respects the social public interest
2. Create a bank that is familiar, pleasing, and useful to its customers
3. Respect human relationships and create a rewarding workplace
Ideal form as we approach our 100th anniversary

Mission (obligations that the Bank should discharge)

Purpose100thanniversary“Concentrate the spirit of reform that flows through theorganization and the power of all the staff who support
the organization, in order to develop communities andsecure a sustainable future for the Bank.”

VALUE (shared values of the organization)

28th Medium-termManagement Plan“‘You watch us, understand us, and grant our wishes.’
Shimizu Bank’s goal is to be thought of as such a bank.”

VISION (ideal form, ultimate objective)“Demonstrate the significance of our existence”

THE SHIMIZU BANK,LTD.
3

Top Message / Medium-term Management Plan

From “ZENSHIN” to “SHINKA”
In April 2023, we launched our 28th Medium-term Management Plan, “SHINKA – Creating Connections – .”This plan, the second phase as we move toward the Bank’s 100th anniversary, is positioned as a key period
for maintaining and expanding the earnings base that was raised during the first phase. SHINKA has thethree meanings, “evolution,” “deepening,” and “true value,” and expresses our desire to demonstrate andprovide real value by further advancing and strengthening the various measures implemented in the 27th
Medium-term Management Plan, ZENSHIN, and by moving forward with new measures.
“More sophisticated solutions sales,” “Improved human capital,” and “Implement sustainable
management” have been chosen as its basic policies. By accelerating investment in human capital(employees) and enhancing the strength of the organization as a whole, we will achieve moresophisticated solution sales to local customers, and practice sustainable management that contributes tothe sustainable development of “environment,” “society,” and “economy.”
The numerical targets (for the final fiscal year of the plan) are “core operational net profit of ¥4 billion or
more,” “profit of ¥2.5 billion or more,” “¥1 trillion or more in total loans to small to medium-sized companies in
the prefecture” and “consolidated capital adequacy ratio of 8% or more.” As a regional financial
institution, we will actively supply funds to small to medium-sized companies in Shizuoka Prefecture, andmaintain a sound capital adequacy ratio in the 8% range, while accumulating risk-weighted assets. By
strengthening top-line earnings through the implementation of various measures and reducing costs byimproving management efficiency, we are aiming for core operational net profit of ¥4 billion, and adding a
new target of ¥2.5 billion in profit, thereby demonstrating our commitment to continuing to pay stabledividends to shareholders while improving ROE.

Overview of the 28th Medium-term Management Plan

Name

Planning
periodBasic
policyTarget figure(Final fiscal year)

SH I N K A– Creating Connections –April 1, 2023 - March 31, 2026 (three years)
More sophisticatedsolutions sales

Improved
human capital( i ) Core operational net profit( ii ) Profit(iii) Total loans to small to medium-sizedcompanies in the prefecture(iv) Consolidated capital adequacy ratio

Implement sustainable
management¥4 billion or more
¥2.5 billion or more
¥1 trillion or more
8% or more

Linkages Between Basic Policies
In this medium-term management plan, through the sharing of our Purpose between all our employees ascommon values, as well as accelerating investment in human capital (employees), we aim to realize ourmanagement philosophy through the interconnection of three basic policies. Each of these policies sets out
what we want the bank to be and the cycle for achieving it. By implementing this cycle, we will increase
the Bank’s corporate value and create connections with our stakeholders, including the community,
customers, employees and shareholders.
THE SHIMIZU BANK,LTD.
4

Top Message / Medium-term Management Plan
<Achieving our Management Philosophy>

Accelerate investment
in human capital (employees)

Respect human relationships and create a rewarding workplace

Improved human capital<What we aim to become>Viewing all employees as capital and systematically supporting the growth andjob satisfaction of each individual, strengthens the power of the organization as a whole.

Creating connections with employees
Shimizu Bank’s Purpose

With love for the local community, we consider andco-create the future together with our customers.
Creating connections
with customers<Achieving our Management Philosophy>

Create a bank that is familiar, pleasing, and useful to its customers

Creating connections with the local
community and shareholders<Achieving our Management Philosophy>

Promote sound management that respects the social public interest

More sophisticated solutions sales

Implement sustainable management<What we aim to become>We know our customers well, share in their challenges andvisions, and provide solutions suited to their needs.

<What we aim to become>We contribute to the sustainable development of the local
environment, society and economy through highly efficientbusiness operations and a stable management base.

Dividend Policy and Reduction of Shares Held as Cross-shareholdings
The Bank’s basic policy is to ensure stable earnings and to pay stable dividends to its shareholders bypromoting sound management and by meeting the funding needs of local customers by providing greater
convenience and information to our customers. We will maintain and improve dividend levels byimplementing measures to increase corporate value, including medium-term management plan, and byincreasing net income per share and net assets per share.
It is our policy to strategic investment shares only where it is deemed that such shareholdings will contributeto maintaining and expanding transactions with the investee company and the development of stable andsustainable corporate activities of both the investee company and the Bank. The Bank’s policy is to reducecross-shareholdings by periodically reviewing the significance of each of its holdings, taking into
consideration whether the growth potential, future prospects, and medium- to long-term economic
rationality of individual portfolio companies are commensurate their associated benefits and cost of capital.

Creating Connections With All Stakeholders
Many regional banks, including us, must as financial institutions maintain a certain capital adequacy ratio,
conduct highly public-oriented business that contributes to the development of the local economy, while atthe same time, as a publicly listed company, we must increase profitability and capital efficiency, improveshareholder returns, and invest in further growth to increase its corporate value. While the Bank is required toconsider various stakeholders such as the community, customers, employees, and shareholders, the Bank’s
newly established Purpose and its 28th Medium-term Management Plan focus on its employees, startingfrom the acceleration of investment in human capital (employees), the source of value creation. We are
already engaged in ongoing dialogue with our employees as we move toward revision of the personnel
system, scheduled for October 2023, and plan to improve our human capital through measures including“increasing the compensation paid to younger employees,” “establishing a support system for careerdevelopment,” “lifting restrictions on double-employment and side jobs,” and “improving our leave system.”
We believe that having all our employees act according to our Purpose and rolling out the measures set out
in the 28th Medium-term Management Plan will generate a virtuous cycle that leads to the increased
sophistication of solutions sales that solve customer problems, expand our revenue base, and increase theBank’s corporate value.
Lastly, we will continue to live up to the trust and expectations of our stakeholders. We appreciate yourcontinued support and patronage.

THE SHIMIZU BANK,LTD.
5

Support for Overseas Business Development
Network of Support for Overseas Expansion

The Shimizu Bank Ltd.

(Mexico)Estadode Aguascalientes

Vietcom Bank
(Vietnam)

Estado de Jalisco
Bangkok Bank
(Thailand)

Bank of Communications(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.
6

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.
7

Summary of Business
Consolidated Results

Ordinary income increased by ¥981 million year on year to ¥28,403 million due to increases in interest on loans and discounts aswell as in fees and commissions. Ordinary expenses increased by ¥3,369 million year on year to ¥26,806 million due to an increase
in interest expenses. As a result, an ordinary profit of ¥1,596 million 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 increased by ¥27.1 billion from the end of the previous fiscal
year to ¥1,542.9 billion. In personal deposit assets, by responding to increasing diverse customer needs, we succeeded in growing
personal deposits and personal pension insurance, leading to an increase of ¥30.2 billion over the end of the previous fiscal yearto ¥1,337.1 billion. Loans and bills discounted rose by ¥27.4 billion from the end of the previous fiscal year to ¥1,245.3 billion, as aresult of responding proactively, as a regional financial institution, to demand from customers for funding. Securities decreased by¥6.7 billion over the end of the previous fiscal year to ¥328.6 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 Parent
Comprehensive Income
Total Net Assets
Total Assets

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

2022¥27,4213,984
2,580▲3,78882,5691,808,806

2023¥28,403
1,596
1,474▲6,64275,1581,889,075

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

7,584.31
225.839.41%
1,006

7,001.06▲342.58
8.63%
993

7,388.40
186.699.03%
996

6,993.66
222.698.95%
999

6,384.27
127.55
8.69%
985

Non-Consolidated Results

Ordinary income increased by ¥764 million year on year to ¥21,994 million due to increases in interest on loans and discounts aswell as in fees and commissions. Ordinary expenses increased by ¥3,034 million year on year to ¥20,818 million. As a result, ordinary
profit decreased by ¥2,269 million year on year to ¥1,175 million.
(Millions of Yen)

Non-Consolidated Five-years Summary
Ordinary Income
Ordinary Profit
ProfitCapital Stock
Number of Shares Issued in Thousand Shares
Total Net Assets
Total Assets
Deposits
Loans and Bills Discounted
Securities

2019¥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
310,5242022¥21,2293,445
2,239
10,816
11,641
77,904
1,797,996
1,519,359
1,225,136
335,725

2023¥21,994
1,175
1,265
10,816
11,641
70,383
1,876,516
1,546,805
1,251,148
329,005

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

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

6,715.05
60
30
193.2431.04%
8.71%
906

6,098.80
60
30
109.4054.84%
8.47%
892

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

30,00021,87420,00021,22921,9944,000

Profit(Millionsof Yen)
4,000

3,370

3,000

3,445

2,208

3,000

2,239

2,000
2,000

10,000

1,175

1,000
0

2021

2022

Credit Rating

2023

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.

0

2021

2022
AAA
AA
A
BBB
BB
B
CCC
CC
C
D

1,265
1,000

0

2023

2021

2022

2023

Our BankA-

Credit Rating : ARelevant Debt : long-term Preferred Debt
Credit Rating Agency :Japan Credit Rating Agency,Ltd.
(As of March 31, 2023)

THE SHIMIZU BANK,LTD.
8

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.
9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, as required.
• 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.
10

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.

Systems Targeting Anti-social Forces

Due to their public nature and critical economic function, banks are required to exclude anti-social forces from financialtransactions. For this reason, the Shimizu Bank has created a basic policy that we will stand firmly against anti-social
forces which pose a threat to the order and safety 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 have established a system whereby the banksystematically addresses such issues and excludes anti-social forces from business transactions in cooperation withexternal 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 forces from our business, we have also introduced
clauses regarding the exclusion 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.

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.
11

■ 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 of Persons
with Frozen Assets, etc.
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

Basic Policy on Preventing Money Laundering andCountering the Financing of Terrorism
Basic Policy on Preventing Money Laundering andCountering the Financing of Terrorism
With the diversification of payment methods and the globalization oftransactions, the proceeds of crime are being transferred across national
borders and becoming a source of activity for criminal organizations
and terrorists, making preventing money laundering and countering thefinancing of terrorism international challenges. The Bank considers
preventing money laundering and countering the financing of terrorism
to be important management issues. We have established an effective
control system and are working to maintain and improve the healthinessand appropriateness of our business operations through theestablishment of various regulations and ongoing customer
management.
The details of our basic policy are posted on our website.
https://www.shimizubank.co.jp/footer/maneron/english.html

Solicitation Policy
In line with the “Act on the Provision of Financial Services,” 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.
12

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.
13

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.

Cyber Security

The risk of cyber-attacks is continuing to increase due to the advancement of digital technology and changes in theinternational situation. As attack methods become more diverse and sophisticated, the difficulty of managing systemvulnerabilities and other issues is also increasing. The Bank recognizes cybersecurity management as one of its mostimportant management issues. We have established “Cybersecurity Management Regulations” to clarify our basic policies,
management structure, and roles during normal operations and in the event of an incident, and have also established a
Computer Security Incident Response Team (CSIRT) to conduct cyber attack-related training, exercises, and education to
improve the effectiveness of our countermeasures.

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.
14

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
Construction in Progress
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
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 Loss on Cancellation of System Contracts
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 31,2022

March 31,2023

March 31,2023¥186,746¥248,749

563

577

US$1,862,730
4,324

1,000

1,000

7,493

335,368

328,664

2,461,168

1,217,888

1,245,342

9,325,613

771

1,601

11,994

14,397

14,542

108,900

30,723

27,979209,518

17,291

17,012

127,399

6,958

6,631

49,657

8,999

8,999

67,393

4

6

50

-

74

557

1,328

1,300

9,738

621

955

7,153

516

832

6,235

1

4

31

104

118

886

358

265

1,987

4,755

4,584

34,326

5,344

5,587

41,841(7,025)(7,787)(58,318)¥1,808,806¥1,889,075

US$14,146,136(Millions of Yen)

(Millions of Yen)

(Thousands of U.S.Dollars)

March 31,2022

March 31,2023

March 31,2023¥1,515,749¥1,542,937-

79,550

US$11,554,119
595,701

41,21250,235376,182

151,452

126,685

948,674

9

54

409

11,271

7,542

56,481

469

462

3,461

305

438

3,286

38

51

386

295

283

2,120

88

87

656

5,344

5,587

41,841

1,726,237

1,813,916

13,583,322

10,816

10,81680,996

7,642

7,642

57,22665,922

66,701

499,489

(246)

(346)

(2,595)

84,13484,813635,117(3,785)(11,819)(88,512)

274

297

2,227

415

257

1,928

(3,095)(11,264)(84,355)

93

123

926

1,436

1,485

11,12582,56975,158562,814¥1,808,806¥1,889,075

US$14,146,136

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 ￥133.54per U.S.$1, the approximate rate of exchange prevailing on March 31,2023.

THE SHIMIZU BANK,LTD.
15

Consolidated Statement of Income
Ordinary Income
Interest Income
Interest on Loans and Discounts
Interest and Dividends on Securities
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 Income
Gain on Disposal of Non-Current Assets
Reversal of Provision for Loss on Cancellation of System Contracts
Extraordinary Losses
Loss on Disposal of Non-Current Assets
Impairment Losses
Provision for Loss on Cancellation of System Contracts
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)
Year ended
March 31,2022(Millions of Yen)
Year ended
March 31,2023(Thousands of U.S.Dollars)Year ended
March 31,2023¥27,421¥28,403

15,835

15,982

US$212,694
119,679

12,47812,757

95,536

3,046

2,812

21,061

307

366

2,745

2

44

336

10,55911,31584,736

638

151

1,136

388

953

7,141

388

953

7,141

23,43626,806200,738

454

1,659

12,425

278

238

1,786

0

0

7

(5)

(13)

(97)

142

1,404

10,515

29

26

199

10

1

13

6,067

6,388

47,838911

2,252

16,865

15,165

15,208113,887

837

1,298

9,722

476

816

6,118

360

481

3,604

3,984

1,596

11,955

40

12

93

40

0

0

-

12

92

355

30

226

0

30

226

59

-

-

295

-

-

3,669

1,578

11,822

985

271

2,033

31

(217)

(1,628)

1,016

54

404

2,652

1,524

11,417

71

49

372

¥2,580¥1,474

US$11,045

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)
Year ended
March 31,2022(Millions of Yen)
Year ended
March 31,2023(Thousands of U.S.Dollars)Year ended
March 31,2023¥2,652¥1,524(6,441)(8,167)

US$11,417(61,162)(6,784)(8,032)(60,150)

203

22

169

140

(157)

(1,181)(3,788)(6,642)(49,744)(¥3,852)(¥6,694)(US$50,130)

63

51

386

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 ￥133.54per U.S.$1, the approximate rate of exchange prevailing on March 31,2023.

THE SHIMIZU BANK,LTD.
16

Consolidated Statement of Changes in Net Assets
Year ended March 31,2022(Millions of Yen)
Shareholders' Equity

Balance at April 1, 2021

Share Capital

Capital Surplus¥10,816¥7,643Retained
Earnings

Total
Shareholders'Equity(¥248)¥82,272(248)

82,248¥64,060(23)

Cumulative Effects of Changes in Accounting Policies
Restated Balance

Treasury Shares

10,816

7,643

(23)

64,036

Changes During Period
Dividends of Surplus

(695)

(695)

Profit Attributable to Owners of Parent

2,580

2,580

Purchase of Treasury Shares(1)

Disposal of Treasury Shares

(0)

(0)

2

0

Net Changes in Items Other Than Shareholders' Equity
Total Changes During Period
Balance at March 31, 2022

-

(1)

1,885

2

1,885

¥10,816¥7,642¥65,922(¥246)¥84,134

Accumulated Other Comprehensive Income
Valuation
Difference on
Available-forSale Securities
Balance at April 1, 2021

¥2,991

Total
Deferred Gains Remeasurements Accumulated
or Losses onof Defined
Other
Comprehensive
HedgesBenefit Plans
Income¥71¥275¥3,337

Share
Acquisition
Rights¥72

Cumulative Effects of Changes in Accounting Policies
Restated Balance

2,991

71

275

3,337

72

Non-Controlling
Interests

Total Net Assets¥1,388¥87,071

(13)

(37)

1,374

87,033

Changes During Period
Dividends of Surplus(695)

Profit Attributable to Owners of Parent

2,580
(0)

Purchase of Treasury Shares

0

Disposal of Treasury Shares
Net Changes in Items Other Than Shareholders' Equity(6,776)203

140(6,433)21

61(6,349)Total Changes During Period(6,776)203

140(6,433)21

61(4,464)

Balance at March 31, 2022(¥3,785)

¥274

¥415

(¥3,095)¥93¥1,436¥82,569

Non-Controlling
Interests

Total Net Assets

Year ended March 31,2023(Millions of Yen)
Shareholders' Equity

Balance at April 1, 2022

Share Capital

Capital Surplus¥10,816¥7,642

10,816

7,642

Treasury Shares

Total
Shareholders'Equity¥65,922(¥246)¥84,134

65,922(246)

84,134Retained
Earnings-

Cumulative Effects of Changes in Accounting Policies
Restated Balance
Changes During Period
Dividends of Surplus

(695)

(695)

Profit Attributable to Owners of Parent

1,474

1,474

Purchase of Treasury Shares-

Disposal of Treasury Shares

(100)

(100)

-

-

Net Changes in Items Other Than Shareholders' Equity
Total Changes During Period
Balance at March 31, 2023

-

-

779

(100)

679

¥10,816¥7,642¥66,701(¥346)¥84,813

Accumulated Other Comprehensive Income
Valuation
Difference on
Available-forSale Securities
Balance at April 1, 2022

Total
Deferred Gains Remeasurements Accumulated
or Losses onof Defined
Other
Comprehensive
HedgesBenefit Plans
IncomeShare
Acquisition
Rights(¥3,785)

¥274

¥415

(¥3,095)¥93¥1,436¥82,569(3,785)274

415(3,095)93

1,436

82,569-Cumulative Effects of Changes in Accounting Policies
Restated Balance
Changes During Period
Dividends of Surplus(695)

Profit Attributable to Owners of Parent

1,474

Purchase of Treasury Shares

(100)
-

Disposal of Treasury Shares
Net Changes in Items Other Than Shareholders' Equity(8,034)22(157)(8,169)29

49(8,090)Total Changes During Period(8,034)22(157)(8,169)29

49(7,410)

Balance at March 31, 2023(¥11,819)

¥297

¥257

(¥11,264)¥123¥1,485¥75,158

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 ￥133.54per U.S.$1, the approximate rate of exchange prevailing on March 31,2023.

THE SHIMIZU BANK,LTD.
17

Consolidated Statements of Changes in Net Assets
Year ended March 31,2023(Thousands of U.S.Dollars)
Shareholders' Equity

Balance at April 1, 2022

Share Capital

Capital Surplus

US$80,996

US$57,226

80,99657,226

Treasury Shares

Total
Shareholders'Equity

US$493,650(US$1,842)

US$630,031

493,650(1,842)630,031

Retained
Earnings-

Cumulative Effects of Changes in Accounting Policies
Restated Balance
Changes During Period
Dividends of Surplus(5,206)(5,206)

Profit Attributable to Owners of Parent

11,045

11,045Purchase of Treasury Shares-

Disposal of Treasury Shares

(752)

(752)

-

-

Net Changes in Items Other Than Shareholders' Equity
Total Changes During Period
Balance at March 31, 2023

-

-

5,838

(752)

5,086

US$80,996

US$57,226

US$499,489(US$2,595)

US$635,117

Accumulated Other Comprehensive Income
Valuation
Difference on
Available-forSale Securities
Balance at April 1, 2022

Total
Deferred Gains Remeasurements Accumulated
or Losses onof Defined
Other
Comprehensive
HedgesBenefit Plans
IncomeShare
Acquisition
Rights

Non-Controlling
Interests

Total Net Assets(US$28,348)

US$2,058

US$3,110(US$23,179)

US$703

US$10,754

US$618,309(28,348)

2,058

3,110

(23,179)703

10,754

618,309-

Cumulative Effects of Changes in Accounting Policies
Restated Balance
Changes During Period
Dividends of Surplus(5,206)

Profit Attributable to Owners of Parent

11,045(752)

Purchase of Treasury Shares-

Disposal of Treasury Shares
Net Changes in Items Other Than Shareholders' Equity
Total Changes During Period
Balance at March 31, 2023

(60,163)169(1,181)(61,176)

223

371(60,581)(60,163)169(1,181)(61,176)

223

371(55,495)(US$88,512)

US$2,227

US$1,928(US$84,355)

US$926

US$11,125

US$562,814

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 ￥133.54per U.S.$1, the approximate rate of exchange prevailing on March 31,2023.

THE SHIMIZU BANK,LTD.
18

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 Loss on Cancellation of system contracts
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 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)
Year ended
March.31,2022(Millions of Yen)
Year ended
March.31,2023(Thousands of U.S.Dollars)Year ended
March.31,2023¥3,669
1,018
59
(872)
(0)
(152)
(51)
(9)
295
(15,835)
454
190
(6)
(5,286)(39)(39)(13,604)
24,967(69,400)
39,997448
18,2981,168(0)(1,382)
16,179
(546)
2,030
1,551
(1,474)77¥1,578
994
762
(6)
92
133
13
(12)
(15,982)
1,659
899
(8)
(6,504)30(13)(27,454)
27,18779,550(24,766)
351
9,022
(830)
45
(760)
16,569(1,687)(1,599)59,263(939)
58,323

US$11,822
7,445
5,711
(50)
695
999
98
(92)
(119,679)
12,4256,735(62)(48,707)226(102)(205,588)
203,589595,701(185,460)
2,628
67,563(6,218)339(5,695)
124,077(12,636)(11,980)
443,785(7,037)436,748(143,874)
97,23319,000
6
(865)
(285)
440
(9)
(28,354)(60,534)
49,721
16,153
8
(440)
(486)
404
4,826

(453,303)
372,334
120,960
60(3,297)(3,641)
3,032
36,145

(22)
(0)
0
(694)
(1)
(719)
1
(28,994)
214,634¥185,640

(3)
(100)
(691)
(1)
(797)
0
62,353
185,640¥247,993

(25)
(752)
(5,181)(14)(5,974)
5
466,924
1,390,150
US$1,857,075

Cash Flows from Investing Activities
Purchase of Securities
Proceeds from Sale of Securities
Proceeds from Redemption of Securities
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 ￥133.54per U.S.$1, the approximate rate of exchange prevailing on March 31,2023.

THE SHIMIZU BANK,LTD.
19

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

Keiko Higashi*2
Yoshiki Shimma*2
Makoto Kono*2
Naoyuki Tamura
Nobuhide Fukazawa
Masaki Yagi
Akihiro Mochizuki*3
Kazuaki Isobe*2∙*3
Shigeyuki Konagaya*2∙*3
Kanako Ito*2∙*3

Katsuichiro Toyoshima*1● President

Yasuhiro Iwayama*1● Senior Managing Directors
Ayato Mochizuki*1
Fumitoshi Yabuzaki● Managing Director
Masashi Hiraiwa

As of June 30,2023

Hiroshi Nonomura● Executive Officers*1Representative Director*2Outside Director*3Audit & Supervisory Committee Members

Yasunobu Sugimoto
Yoshiyasu Ohata
Masaki Suzuki
Yasumasa Oki
Takafumi Okada
Kunihiko Maeda

Organization Chart

As of June 30,2023

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.
20