THE SHIMIZU BANK,LTD.

Annual Report 2014

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, 2014

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:
77
Number of Sub-branches:1
Number of Employees:
1,002
Consolidated Capital Adequancy Ratio(based on domestic standards): 11.93%
Non-Consolidated Capital Adequancy Ratio(based on domestic standards): 11.57%

Consolidated Subsidiaries

As of June 30, 2014

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 Regional Economy Research Center, INC

12100.00%−

October 28, 1965

Financial and economic
research services, Training

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

5.00%

50.00%

July 1, 1989

Calculation operations

THE SHIMIZU BANK , LTD.
1

Message
We want to thank all of our customers for your continued patronage at the Shimizu Bank and our group partners. We have put
together a packet of Disclosure Materials the 2014 fiscal year to share the financial highlights and our efforts of the 2013 fiscal year.
We invite you to read these materials to further your understanding of the Shimizu Bank and our group partners.
Japan’s economy in the current period has become stronger, with business results seeing recovery owing to the effects of thecurrent administration’s economic policies and corrections meant to counteract a strong yen, and the peace of mind in spending
in both households and businesses has been improved, and domestic demand has increased its bedrock. Public investments areup, and money is being put into equipment investments once again. The period saw many efforts being undertaken in industries
related to growth fields such as power generation business using renewable energy, with activity in mega-solar endeavors andmore. As for personal consumption, increases in residential investment and sales of luxury goods showed strong movement due tothe wealth effect due to rising stock prices, and there has been a last-minute surge in demand just before consumption tax
increases took effect.
In terms of the economy of Shizuoka Prefecture, the primary service area for the Shimizu Bank, conditions continued to improve,
particularly for large corporations in the industries of transport equipment, general machinery, electrical machinery thanks to therecovery of domestic demand and a partial improvement in overseas markets. Consumer spending showed steady growth thanks
to gradual improvement in the employment and income environment. There was also an upsurge of interest in tourist sites due toevents such as the registration of Mt. Fuji as a World Heritage Site, and the number of hotel guests and visitors to tourist facilities
increased.
It was in this context that we launched our 25th Medium-term Management Plan, which we call “Combined Rush ’14-’15,” in Aprilof 2014. Following last year’s 24th Medium-term Management Plan, we have made it our ideal to “demonstrate the significanceof our existence,” and our three basic policies are “strengthen sales and support,” “improve management quality,” and“strengthen human resources.” To “strengthen sales and support,” bolstering solutions consulting business and expanding ourcustomer base by reconstructing sales structure and expanding on points of contact with customers, simultaneously advancing
management improvements and business revitalization support. Toward “improve management quality”, we pursue efficiency
through BPR and push low-cost operation, aiming for maximum efficacy at minimal costs. We will also move forward with bolstering market operating strength as well as functions and cooperation between group companies, working to continue tostrengthen the business management system, while continuing to make our internal management even more deeply aware of
how to protect customers such as the elderly in Japan’s aging society. Finally, as part of our policy to “strengthen humanresources”, we have filled out our training curriculum and are bolstering efforts toward OJT, and are establishing a culture thatencourages self-guided study by employees through a dedicated website for training. We believe that by increasing the skills andknowledge of every individual working at our banks and educating our employees to enable them to provide optimal solutions to
our customers will tie into our work toward our other two policies of “strengthen sales and support” and “improving management
quality”.
We want to build relationships of trust by
deepening our local community-based
financing and providing financial
services appropriate to the life stage ofeach individual customer, with all the
Shimizu Bank employees and executives
coming together as one to embody a“demonstration of the significance of
our existence.”
We look forward to serving and supporting our customers, and we want to takethis opportunity to thank you andrequest your continued patronage.
July 2014

Katsuichiro Toyoshima
President

Noriji Yamada
Chairman

THE SHIMIZU BANK , LTD.
2

The 25th Medium-term Management Plan

From April 1, 2014
to March 31, 2016 (Two years)

COMBINED RUSH '14-'15
In line with the 25th Medium-term Management Plan, the Shimizu Bank want to build relationships of trust by deepening
our local community-based financing and providing financial services appropriate to the life stage of each individual
customer, with all the Shimizu Bank employees and executives coming together as one to embody a “demonstrationof the significance of our existence”.
In an effort to grow together with the region, bank employees will focus our combined power on carrying out ourplans meant to allow us to adapt to changes in the business environment and adopt a brave stance. We are calling
our plan to do all this “Combined Rush ’14-’15,” and its three basic policies are “strengthen sales and support”,“improve management quality”, and “strengthen human resources”.

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 and are satisfied with their job requirements.
Ideal goals

Demonstrate the significance of our existence
Name

COMBINED RUSH '14-'15
From April 1,2014 to March 31,2016(Two years)
Basic policy

I. Strengthen sales and support
1. Expand our customer base
2. Strengthen marketing of solutions for corporateclients
3. Strengthen marketing of consultation with retailclients
4. Expand and enhance contact with clients.
5. Reconstruct our sales structure
6. Bolster support for management improvements
and business revitalization
7. Contribute to vitalization of the regional economy

II. Improve management quality

III. Strengthen human resources

1. Pursue improvements in business operations andefficiency through BPR
2. Lower operating expenses
3. Strengthen market investment capabilities
4. Reinforce functions of, and cooperation between
group companies
5. Strengthen the business management system
6. Fortify operational management systems suchas customer protection

1. Enhance the training system
2. Establish a climate that encourages self-study
3. Strengthen OJT
4. Familiarize staff with the new personnel system

Support for Overseas Business Development

We made our efforts to continue to meet the customer needs of overseas business development through expansion of
external network. In June of 2013, we formed a business alliance with Bank of Communications(China). And we formed
a business alliance with Metro Bank(Philippines) in July of 2013, and Vietcom Bank(Vietnam) in December of 2013 under
MOU with Japan Bank for International Cooperation(JBIC). In December of 2013, we also formed a business alliancewith ORIX Corporation and by its cooperation of the company, which is widely providing financial services in domestic
and international, we more deeply expanded overseas business development for the customer. Also for we support thecustomer's overseas sales development, in September of 2013, we opened "Visiting tour in Factory network business
conference of Japan and China" and conducted the customer in Shanghai of China.

Customer

THE SHIMIZU BANK
Consultation

Trade business
Overseas business

AdviceOverseas information【 Support for overseas business 】●Provision of information●Business support●Consultatin etc.
【 Support for foreign exchange 】●Foreign exchange

Funding(Remittance,L/C)

Introduction

Cooperation

External network
Consultation●Trade consultation●Examination of Standby Credit

AdviceShizuoka International
Business Association(SIBA)
Daiwa Securities Co.,Ltd
The Japan Bank for International
Cooperation(JBIC)
Cooperators under MOU with
the Japan Bank for International
Cooperation(JBIC)· Kasikorn Bank(Thailand)· Bank Negara Indonesia(Indonesia)· State Bank of India(India)· Metro Bank(Philippines)· Vietcom Bank(Vietnam)
Bank of Communications(China)
ORIX Corporation
Major consulting company

Provision of information : Market trends , laws regulations and subsidy of foreign country and various seminars
Business support: Indroduction of International fair and business conference , On-site inspection
Consultation: Cosponsored by business conference , 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.
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.

Photo by Akira Tsutsui
THE SHIMIZU BANK , LTD.
4

Summary of Business
Consolidated Results

Operating income was JPY 30.265 billion, an increase of JPY 628 million from the previous term, owing primarily to
an increase in interest and dividends on securities. Operating expenses were JPY 26.64 billion, an increase of JPY
486 million from the previous term, because of the costs of the system migration and the like. Consequently,
operating profit reached JPY 3.66 billion, a JPY 142 million increase from the previous term.
Deposits increased to JPY 1,377.4 billion, an increase of JPY 31.4 billion from the end of the preceding term as aresult of our efforts to expand our business base in the local community. The total of personal assets undermanagement reached JPY 1,048.3 billion, an increase of JPY 20.9 billion from the end of the previous term, due toan increase in personal deposits while accommodating the diversifying needs of customers.
On account of positively meeting capital demands from customers as a regional financial institution, outstandingloans and discounts reached JPY 1,031.4 billion, an increase of JPY 20 billion from the end of the previous term.
Outstanding securities increased by JPY 16.3 billion from the previous term to JPY 301.2 billion, as a result of agile
securities management while watching market trends.

Consolidated Five-year Summary

Millions of Yen
2012

2014

2010

2011

Operating Income¥29,863¥30,788¥29,304¥29,636¥30,265

Operating Profit

3,631

3,545

4,453

3,518

3,660

Net Income

3,449

3,037

1,636

2,430

2,077

-

843

3,755

5,868

668

Net Assets

66,43966,702

69,87974,432

74,250Total Assets

1,353,833

1,416,408

1,408,745

1,488,023

1,494,830

Net Assets per Share in Yen

6,691.82

6,703.33

7,026.55

7,571.05

7,552.19

Net Income per Share in Yen

361.42318.34171.53254.72217.78Comprehensive Income2013

Non-consolidated Results

Operating income was JPY 25.52 billion, an increase of JPY 615 million from the previous term, due to increases ininterest and dividends on securities. Operating expenses were JPY 22.014 billion, an increase of JPY 348 million fromthe previous term, because of the costs of the system migration and the like.
As a result, operating profit was JPY 3.505 billion, an increase of JPY 266 million from the previous term.
Consolidated Five-year Summary

Millions of Yen
2012

2014

2010

2011

Operating Income¥24,423¥25,333¥24,506¥24,905¥25,520

Operating Profit

3,423

3,265

4,191

3,238

3,505

Net Income

3,438

3,078

1,644

1,824

1,999

Common Stock

8,670

8,670

8,670

8,670

8,670

Net Assets

63,25063,394

66,47871,06070,974

Total Assets

1,345,707

1,409,868

1,402,363

1,482,692

1,487,974

Deposits

1,255,582

1,292,464

1,309,404

1,350,435

1,382,325

Loans and Bills Discounted

966,350

969,457

979,7311,017,400

1,036,413

Securities

253,928

295,382338,770

285,174

301,501

Net Assets per Share in Yen

6,627.46

6,643.52

6,967.52

7,448.37

7,440.33

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

1,050,000

60

60

60

172.37191.24209.55

1,017,400

3,000

2,000

1,644

1,999

1,824

1,000,000

1,309,404

979,731

2012(Millions of Yen)

Net Income(Loss)

1,036,413

1,350,435

1,300,000

1,250,00060
322.61Loans and Bills Discounted
1,382,325

1,350,00060
360.30(Millions of Yen)

Deposits
1,400,000

2013

2013

2014

950,000

2012

1,000

2013

2014

0

2012

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 the certainty of payment of its principals andinterest on a contractual basis, and such rating isrepresented using a simple code.

2013

2014

AAA
AA
A
BBB

Credit rating : A
Relevant Debt : Long-term
Preferred Debt
Credit rating Agency : Japan
Credit Rating Agency,Ltd(As of March 31, 2014)

A

BB
B
CCC
CC
C
D

THE SHIMIZU BANK , LTD.
5

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 thorough 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 oversees 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.

Board of Directors

Compliance System
ReportAudit & Supervisory Board
Instruction

Management Committee
ReportConsult

Corporate Lawyers

Instruction

Corporate Administration Division Legal OfficeInspection

Internal Audit Division(Compliance Supervisory Department)(Compliance Report System)

Centralized Control of Compliance(Anti-social Forces Treatment Department)

Anti Money Laundaring'Wire-the-money scam'Legislative Remedy

Report, Contact, Consult

Operations Division
Report,Contact,
Consult

Inspection Result
ReportDiscuss

Consult and Compliants treatment
Financial ADR Treatment
Disclose personal Information

Branch Advisory DivisionInspection

Issues Related to Each Works

Divisions in Head Office
Discuss

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

Discuss
Inspection

Markets and International 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 havealready recognized as a top priority, we will continue
to foster awareness of compliance and instill it in all
executives and employees at all of our groupcompanies to make sure that they all understand it
and get into the habit of applying it.
Preventing Legal and Regulatory Violations
We have taken action to prevent legal and regulatory
violations by forming a corporate culture which allows
us to detect weaknesses and problem areas in ourefforts toward legal and regulatory compliance,
reflect on past conduct, and make improvements in
those areas promptly.

Branches,Divisions, andGroup Companies, etc

Systems Targeting Anti-social Forces

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

THE SHIMIZU BANK , LTD.
6

Corporate Data
Consolidated Balance Sheets(Millions of Yen)

(Millions of Yen)

(Thousands of U.S.Dollars)

Years ended
March 31,2013

Years ended
March 31,2014

Years ended
March 31,2014

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¥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

¥123,208
5,000
253
1,800
301,265
1,031,426
590
9,543
5,070
20,311
9,545
9,174
207
1,384
802
611
18
173
2,336

US$1,197,129
48,581
2,463
17,4972,927,178
10,021,632
5,735
92,72949,270
197,351
92,744
89,1422,014
13,450
7,800
5,940
175
1,684
22,704

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

2,756(9,536)
1,494,830

26,782(92,655)
14,524,199(Millions of Yen)

(Millions of Yen)

(Thousands of U.S.Dollars)

Years ended
March 31,2013

Years ended
March 31,2014

Years ended
March 31,2014

Liabilities¥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¥1,377,456
10,45416
18,000
7,813
529
3,379
115
58
2,756
1,420,580

US$13,383,761
101,578
161
174,893
75,9185,142
32,836
1,126
564
26,78213,802,765

Common Stock
Capital Surplus
Retained Earnings
Treasury Stock
Total Shareholders' Equity

8,670
5,272
53,624(287)
67,2798,670
5,272
55,129(290)
68,781

84,245
51,231535,651(2,826)
668,302

Net Unrealized Gain (Loss) on Securities
Available for Sale,Net of Taxes

4,951

3,452

33,543

(0)
4,951
2,201
74,432
1,488,023

0
(191)
3,260
2,208
74,2501,494,830

0(1,865)31,67821,453
721,434
14,524,199

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
Net Defined Benefit Liabilities
Reserve for Directors' Retirement Benefits
Reserve for Reimbursement of Deposits
Acceptances and Guarantees
Total Liabilities

Net Assets

Net Deferred Gain(Loss) on Hedging
Instruments,Net of Taxes
Remeasurements of Defined Benefit Plans
Total Accumulated Other Comprehensive Income
Minority Interests
Total Net Assets
Total Liabilities and Net Assets

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 ¥102.92per U.S.$1, the approximate rate of exchange prevailing on March 31, 2014.

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, 2013

Years ended
March 31, 2014

Years ended
March 31, 2014

¥29,636
18,51915,709
2,726
64
2
16
7,961
2,466
689
4
684
26,1181,197
927¥30,265
18,404
14,866
3,481
20
34
0
7,929
1,515
2,415
1
2,414
26,604
1,249
892

US$294,064
178,818
144,444
33,829202335
677,04814,723
23,473
11
23,462
258,496
12,142
8,669

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

5
44
54
220
5
26
4,575
195
17,441
3,143
2,516
626
3,660
84
84
17
1
15
3,727
1,289
285
1,575
2,152
74
2,077

57
428
533
2,138
58
256
44,457
1,895
169,461
30,53924,452
6,087
35,567
818
818
166
19
147
36,21912,5272,778
15,306
20,913726
20,187

Consolidated Statements of Comprehensive Income(Millions of Yen)

(Millions of Yen)

(Thousands of U.S.Dollars)

Years ended
March 31, 2013

Years ended
March 31, 2014

Years ended
March 31, 2014

Income Before Minority Interests¥2,551¥2,152

US$20,913

Other Comprehensive Income

3,317(1,484)(14,422)3,317(1,484)(14,422)

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

0

0

0

5,868

668

6,491

5,760

578

5,620

108

89

871

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 ¥102.92per U.S.$1, the approximate rate of exchange prevailing on March 31, 2014.

THE SHIMIZU BANK , LTD.
8

Consolidated Statements of Changes in Net Assets
Years ended March 31,2013(Millions of Yen)

Shareholders' Equity
Common Stock
Balance at the Beginning of Current Period

Capital Surplus¥8,670Retained Earnings¥5,272

Treasury Stock¥51,766

Total Shareholders' Equity(¥285)¥65,423

Changes of Items During the Period
Dividends from Surplus

(572)

(572)

Net Income

2,430

2,430
(1)

Purchase of Treasury Stock(1)

Net Changes of Items Other Than Shareholders' Equity
Total Changes of Items During the Period
Balance at the End of Current Period

-

-

1,857

(1)

1,856

8,670

5,272

53,624(287)

67,279

Accumulated Other Comprehensive Income

Balance at the Beginning of Current Period

Net Unrealized Gain(Loss)on Securities Available
for Sale, Net of Taxes

Net Deferred Gain(Loss)on Hedging Instruments,
Net of Taxes

Remeasurements ofDefined Benefit Plans

Total Accumulated Other
Comprehensive Income¥1,617(¥0)-¥1,617

Minority Interests

Total Net Assets¥2,838¥69,879

Changes of Items During the Period
Dividends from Surplus(572)

Net Income

2,430
(1)

Purchase of Treasury Stock
Net Changes of Items Other Than Shareholders' Equity

3,333

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

-

3,334

3,333

0

-

3,334

(637)

4,553

4,951

(0)

-

4,951

2,201

74,432Years ended March 31,2014

(637)

2,696

0

(Millions of Yen)

Shareholders' Equity
Common Stock
Balance at the Beginning of Current Period

Capital Surplus¥8,670Retained Earnings¥5,272

Treasury Stock¥53,624

Total Shareholders' Equity(¥287)¥67,279

Changes of Items During the Period
Dividends from Surplus

(572)

(572)

Net Income

2,077

2,077
(3)

Purchase of Treasury Stock(3)

Net Changes of Items Other Than Shareholders' Equity
-

-

1,505

(3)

1,501

8,670

5,272

55,129(290)

68,781

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

Accumulated Other Comprehensive Income

Balance at the Beginning of Current Period

Net Unrealized Gain(Loss)on Securities Available
for Sale, Net of Taxes

Net Deferred Gain(Loss)on Hedging Instruments,
Net of Taxes

Remeasurements ofDefined Benefit Plans

Total Accumulated Other
Comprehensive Income¥4,951(¥0)-¥4,951

Minority Interests

Total Net Assets¥2,201¥74,432

Changes of Items During the Period
Dividends from Surplus(572)

Net Income

2,077
(3)

Purchase of Treasury Stock
Net Changes of Items Other Than Shareholders' Equity(1,499)0(191)(1,691)

Total Changes of Items During the Period(1,499)0(191)(1,691)

6

(182)

3,452

0

(191)

3,260

2,208

74,250

Balance at the End of Current Period

Years ended March 31,2014

6(1,684)(Thousands of U.S.Dollars)

Shareholders' Equity
Common Stock
Balance at the Beginning of Current Period

Capital Surplus

US$84,245.00

Retained Earnings

US$51,231.00

Treasury Stock

US$521,026.00(US$2,793.00)

Total Shareholders' Equity
US$653,710.00

Changes of Items During the Period
Dividends from Surplus(5,561)Net Income

20,187(5,561)
20,187(33)

Purchase of Treasury Stock(33)

Net Changes of Items Other Than Shareholders' Equity
Total Changes of Items During the Period
Balance at the End of Current Period--

14,625(33)

14,591

84,245

51,231535,651(2,826)

668,302

Accumulated Other Comprehensive Income

Balance at the Beginning of Current Period

Net Unrealized Gain(Loss)on Securities Available
for Sale, Net of Taxes

Net Deferred Gain(Loss)on Hedging Instruments,
Net of Taxes

Remeasurements ofDefined Benefit Plans

Total Accumulated Other
Comprehensive Income

US$48,110.00(US$0.00)-

US$48,110.00

Minority Interests
US$21,388.00

Total Net Assets
US$723,209.00

Changes of Items During the Period
Dividends from Surplus(5,561)Net Income

20,187(33)

Purchase of Treasury Stock
Net Changes of Items Other Than Shareholders' Equity(14,567)0(1,865)(16,432)

Total Changes of Items During the Period(14,567)0(1,865)(16,432)65(1,775)33,5430(1,865)31,67821,453

721,434

Balance at the End of Current Period

65(16,366)

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 ¥102.92per U.S.$1, the approximate rate of exchange prevailing on March 31, 2014.

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, 2013

Years ended
March.31, 2014

Years ended
March.31, 2014

¥3,928¥3,727

US$36,219

1,413

1,386

13,470

104

15

147

-

(84)

(818)

Cash Flows from Operating Activities
Income Before Income Taxes and Minority Interests
Depreciation and Amortization
Impairment Loss
Gain on Disposal of Fixed Assets
Gain on Bargain Purchase
Increase (Decrease) in Allowance for Possible Loan Losses

(518)

-

-

(1,270)(402)(3,911)

Increase (Decrease) in Reserve for Employees' Bonuses

(6)

(30)

(294)

Increase (Decrease) in Reserve for Employees' Retirement Benefits(44)(3,190)(31,004)

Increase (Decrease) in Net Defined Benefit Liability

-

3,085

29,975

Increase (Decrease) in Reserve for Directors' Retirement Benefits

9

5

54

Increase (Decrease) in Reserve for Reimbursement of Deposits

8

22

221

Interest Income(18,519)(18,404)(178,818)Interest Expenses

1,197

1,249

12,142(1,929)(3,059)(29,729)

(14)

(12)

(117)

2

1

19

Net Decrease (Increase) in Trading Account Securities

(50)

(47)

(457)

Net Decrease (Increase) in Loans and Bills Discounted(194,695)

Loss (Gain) on Securities
Loss (Gain) on Money Held in Trust
Loss (Gain) on Disposal of Fixed Assets(36,573)(20,038)Net Increase (Decrease) in Deposits

40,801

31,456

305,638Net Increase (Decrease) in Negotiable Certificates of Deposit

31,900(31,900)(309,949)

Net Increase (Decrease) in Borrowed Money Excluding Subordinated Borrowings

(784)

6,408

62,264

Net Decrease (Increase) in Due from Banks Other than the Bank of Japan

(62)

(131)

(1,278)Net Decrease (Increase) in Call Loans(70,000)

65,000631,558

Net Increase (Decrease) in Call Money

3,156(3,978)(38,654)

Net Decrease (Increase) in Foreign Exchange Assets

36

134

1,308

Net Increase (Decrease) in Foreign Exchange Liabilities

(22)

6

64

Net Decrease (Increase) in Lease Receivables and Investment Assets

(485)

150

1,460

Interest Received

18,194

18,884

183,484

Interest Paid

(1,437)(1,389)(13,497)

Other, net(4,271)(4,304)(41,827)

Subtotal(35,236)

44,561

432,974

(452)

(757)

(7,364)(35,688)

43,803425,609

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

Cash Flows from Investing Activities(232,793)(200,733)(1,950,379)

Proceeds from Sales of Securities

243,530

151,660

1,473,580

Proceeds from Maturities of Securities

54,81037,843367,694

14

11

110

Purchases of Tangible Fixed Assets

(670)

(317)

(3,084)Purchases of Intangible Fixed Assets

(222)

(168)

(1,637)

111

101

988

(221)

-

-

64,559(11,601)(112,727)

Purchases of Securities

Decrease in Money Held in Trust

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)

(570)

(5,542)

Cash Dividends Paid to Minority Shareholders

(2)

(2)

(20)

Purchases of Treasury Stock

(1)

(3)

(33)

(174)

(175)

(1,700)

Redemption of Bonds with Warrants-(5,999)(58,287)

Proceeds from issuance of subordinated bond-

10,00097,162

(749)

3,249

31,577

(9)

(5)

(58)

28,11135,445

344,400

Cash Dividends Paid

Repayments of Lease Liabilities

Net Cash Provided by (Used in) Financing Activities

Effect of Exchange Rate Changes 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

58,20786,319838,705

86,319

121,765

1,183,105

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 ¥102.92per U.S.$1, the approximate rate of exchange prevailing on March 31, 2014.

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

Directors
Sumiko Suzuki
Fujio Kaneda•

Senior Managing Director
Akihiro Mochizuki

Corporate Auditors
Kazuhito Kobayashi•

Managing Executive Officers
Akihiro Sei

Toshiaki Iwaoka

Syuji Sano

Keisuke Takeshita

Yasuhiro Iwayama

Youichiro Ito

Masashi Harada

Kazuaki Isobe

Naoki Tobayama

As of June 30, 2014•

Executive Officer
Fumitoshi Yabuzaki

Naoyuki Shirakawa
Ayato Mochizuki
Syunji Usami

Organization Chart

As of March 31,2014

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
HEAD OFFICENUMAZUSHIZUOKAYAIZU
HAMAMATSU

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

TOKYO
NAGOYATHE SHIMIZU BANK , LTD.
11