Annual Report 2022

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, 2022

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:1
906
Number of Employees:
Consolidated Capital Adequacy Ratio(based on domestic standards): 8.95%
Non-Consolidated Capital Adequacy Ratio(based on domestic standards): 8.71%

Consolidated Subsidiaries

As of March 31, 2022

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

Yasuhiro Iwayama
President andRepresentative
Director

Taking on Challenges and Implementing
Reforms with the“Strength to Change”
and“Resolute Commitment”
Introduction
We want to thank all of our customers for your continued patronage at the Shimizu Bank and our group partners. We
have newly published the 2022 Annual Report, Integrated Report and Disclosure Materials. Efforts were made toenhance the disclosure of corporate information of the Shimizu Bank Group more than ever, and we invite you tomake use of these materials to further your understanding of the Shimizu Bank Group.

THE SHIMIZU BANK,LTD.
2

Top Message / Medium-term Management Plan

Thoughts as We Approach Our 100th Anniversary
The Shimizu Bank defines its ideal form as it approaches the 100th anniversary of its foundation on July 1, 2028, fromthe perspectives of MISSION (obligations that the Bank should discharge), VALUE (shared values of the organization)
and VISION (ideal form, ultimate objective). It was by backcasting from this ideal form that the 27th Medium-termManagement Plan “ZENSHIN – Building Bridges –” was formulated as the first phase toward the 100th anniversary. The
first phase, which began in April 2020, has been positioned as an important period for raising the base level ofprofitability.
The “ZENSHIN” motto we have used for this plan incorporates the three Japanese meanings of “conscience,” “whole
body,” and “forward movement,” and is intended to convey the sense of “Using every last bit of effort to move
forward steadily, one step at a time, with a moral conscience.” The subtitle “Building Bridges” reflects ourdetermination to build bridges with customers as well as a bridge to the next phase toward our 100th anniversary.

The 27th Medium-term Management Plan from April 1, 2020 to March 31, 2023 (three years)

ZENSHIN～ Building Bridges ～

Ideal

form

ur

ach o

ppro
s we aary

iversaann
100th

100th anniversary(2028)VISION (ideal form, ultimate objective)“Demonstrate the signiﬁcance of our existence”

VALUE (shared values of the organization)“‘You watch us, understand us, and grant our wishes.’
Shimizu Bank’s goal is to be thought of as such a bank.”

MISSION (obligations that the Bank should discharge)“Concentrate the spirit of reform that ﬂows through theorganization and the power of all the staﬀ who support theorganization, in order to develop communities and secure asustainable future for the Bank.”

90th anniversary(2018)
earscal Y2019 Fi th
(145
r)
a
e
Y
l
Fisca

・・・

-term
edium
26th m ment plan
e
g
”
a
n
Ma
s One
nce A
“Adva

ear
scal Y
2020 Fi th
(146
r)
a
e
Y
Fiscalear
scal Y2021 Fi Fiscal(147thr)
Yea

ear
scal Y2023 Fi Fiscal(149thYear)earscal Y2022 Fi Fiscal(148thYear)nent pla

gem
Mana
-term
edium 1st phase
m
th
27

ear
scal Y2024 Fi Fiscal(150thYear)earscal Y2026 Fi Fiscald(152n r)Yea

ear
scal Y2025 Fi Fiscal(151stYear)nent pla

m
anage
erm M
dium-t d phase
e
m
2n
28th

ear
scal Y2027 Fi Fiscal(153rd
r)
a
e
Y

ear
scal Y2028 Fi Fiscal(154thr)aYen

ent pla

gem
Mana
-term
edium 3rd phase29th m

Shimizu Bank’s Strengths and Value Creation Process
The Bank’s biggest strength is the social capital nurtured in local communities through providing community-oriented
financial services over a long period of more than 90 years. Shizuoka Prefecture, which is the primary business base of
the Bank, is not only blessed with a mild climate but also has in place solid land, sea and air infrastructures such as
the Tokaido main artery running east-west, Chubu-Odan Expressway running north-south, Port of Shimizu and otherports, and Mt. Fuji Shizuoka Airport. With a variety of industrial agglomerations taking advantage of the convenienceof the location among other factors, Shizuoka Prefecture exhibits high potential. The Bank’s branch network
established throughout the prefecture has built strong relationships with local companies, administrative andgovernment organizations, and other entities. We utilize such social capital nurtured in local communities along withfinancial, human, intellectual and natural capital in pursuing business activities to provide our stakeholders withdiverse values.

THE SHIMIZU BANK,LTD.
3

Top Message / Medium-term Management Plan

Financial and Economic Environment
During the fiscal year under review, as the Japanese economy moved toward the normalization of economic
activities, which had been stagnant due to the impact of the novel coronavirus disease (COVID-19), there were signsof improvement generally in consumer spending, corporate activities and capital investment. In some industries,
however, steps toward recovery were at a standstill due to surging raw material prices prompted by the Ukraine
situation and supply restrictions caused by COVID-19.
While the economy of Shizuoka Prefecture, which is the primary business base of the Bank, is also basically on a path
to recovery, the food service and lodging businesses faced challenging conditions mainly as the impact of COVID-19
lingered. Looking at the employment and income environment, although the labor market is improving, the incomeof employees is deteriorating.
In the financial environment, domestic long-term interest rates hovered around 0% under the Bank of Japan’s“Quantitative and Qualitative Monetary Easing with Yield Curve Control” and came to 0.210% at the end of the term.

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)

TargetConsolidated capital
adequacy ratio<Final fiscal year of the plan>

8% or more

Actual (100 millions of yen)

Target

9.03

41
36
25

9,951
27

30

9,770

10,000

8.00

Actual (%)

8.95
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

Progress of the 27th Medium-term Management Plan
While implementing the measures presented in the 27th Medium-term Management Plan “ZENSHIN – Building Bridges–,” which started from April 2020, we concentrated the power of all employees and strove for secure revenue andgreater soundness while staying closely attuned to customers.
In terms of initiatives aimed at corporate customers, we newly established the Solution Sales Division in order to
respond to customer needs that are becoming more diversified and sophisticated. In addition, we worked to expand
external collaborating organizations in areas of expertise relating to customer support, such as diversification offinancing means including sustainable finance, employment placement, decarbonization, digital transformation,etc. and put in place a system for providing high-quality financial services.
As part of our initiatives for individual customers, we launched new inheritance-related services such as atestamentary trust and testamentary substitute trust and made efforts to expand our financial services toaccommodate the 100-year life era. In response to the advancement of digitalization, we began operating accountlinkages with PayPay, pring and other cashless settlement services as well as worked on digitizing the application
process for “SHIMIZU With Card” and individual life insurance products and taking other steps to increase the

THE SHIMIZU BANK,LTD.
4

Top Message / Medium-term Management Plan

convenience of customers.
In our alliance initiatives, we began handling the “SBI DX Database” to incorporate the network with IT ventures that
the SBI Group has nurtured through corporate investments and other means also in the Bank. Furthermore, we
expanded the items of collaboration with Yasai Bus Co., Ltd., a social venture company which operates a common
distribution system that connects producers of agricultural products, etc. in local communities with users, as an
initiative in cross-border business matching.
As part of our initiatives to strengthen the business base, we decided to adopt “STELLA CUBE®” run by NTT DATA
Corporation as our next-generation core system and have been preparing for the start of usage in May 2024. Given
that “STELLA CUBE®” has been continuing stable operation and safe management, which are the elements ofhighest priority for the Bank, we will be able to realize highly reliable system operations and further enhance security
management.
As a result of these initiatives taken, we have achieved two of the three targets set out in the Medium-termManagement Plan; “Core operational net profit of ¥3 billion or more” and “Consolidated capital adequacy ratio of
8% or more,” and have exceeded the plan for the third target “Total loans to small to medium-sized companies of ¥1
trillion or more.”

Adapting to Changes
We at the Bank have overcome numerous challenges together with our customers over a long period of more than
90 years to date. In the two years since the onset of the COVID-19 pandemic in 2020, restrictions were placed on
face-to-face communication which used to be an obvious way of communicating, supply chains spreadingworldwide were disrupted, and other changes came about, causing a paradigm shift that significantly alteredexisting values and lifestyles. In addition, because of the COVID-19 pandemic, matters such as response todigitalization, work style reforms, and strengthening resilience that had been recognized to be necessary from before
but were being addressed slowly have been changing at an accelerated pace.
Under such circumstances, the Bank established the Corporate Support
Office in June 2020 and increased the number of employees specializing inmanagement improvement support in an effort to establish a system tosupport customers that have been significantly affected by the COVID-19
pandemic. In April 2021, we established the Solution Sales Division andassigned specialists in areas of expertise, such as business succession, M&A,
public subsidies, overseas expansion support, healthcare and nursing, etc.
By so doing, we provided a menu of agile solutions to accommodate
customer needs that are becoming more diverse and sophisticated, andresponded flexibly to changes in an effort to promote the sustainable
development of local economies and secure a sustainable future for theBank.
Currently, as SDGs and ESG initiatives spread in society and the economy,
we are working to expand our product lineup alongside taking othermeasures to support the sustainability management of local customers.

Implementation of Sustainability Management
In order to realize sustainable growth with all of our local community residents, we are implementing sustainability
management with our “strength to change” in line with the changing tides of the time and our “resolutecommitment” to stay closely attuned to customers, understand customers, and envision and implement measuresthat please and contribute to customers, based on our basic policies set out in the 27th Medium-term ManagementPlan.
We will continue to identify customer needs that are becoming more diverse and sophisticated, and enhance thequality of financial products we provide by designing products and services to meet these needs. Then we will strive
to strengthen the Bank’s earnings base. We will also maintain a keen awareness of our social responsibility as afinance institution, and in addition to building a robust structure for compliance, we will work to strengthen
governance in order to increase corporate value, thereby responding to the trust and expectations from all
stakeholders. We humbly and sincerely ask for your continued 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 Communication(China)Estadode Nuevo León

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

Estadode Guarajuato

Metropolitan Bank
(Philippines)

Bank Negara Indonesia(Indonesia)

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

Local Financial Institutions

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

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

THE SHIMIZU BANK,LTD.
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 decreased by ¥361 million year on year to ¥27.421 billion due to decreases in revenue related to securities.
Ordinary expenses decreased by ¥871 million year on year to ¥23.436 billion due to decreases in expenses and credit-related
expenses. As a result, an ordinary profit of ¥3.984 billion was posted.
In terms of deposits, as a result of striving to expand our business base, which has close ties to the region, total deposits increasedby ¥24.9 billion from the end of the previous fiscal year to ¥1,515.7 billion.
In personal deposit assets, by responding to increasing diverse customer needs, we succeeded in growing personal deposits andpersonal pension insurance, leading to an increase of ¥53.1 billion over the end of the previous fiscal year, to ¥1,306.8 billion.
Loans and bills discounted rose by ¥13.6 billion from the end of the previous fiscal year to ¥1,217.8 billion, as a result of responding
proactively, as a regional financial institution, to demand from customers for funding.
Securities rose by ¥25.2 billion over the end of the previous fiscal year, to ¥335.3 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

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

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

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

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

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

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

8,629.71
244.5210.30%
1,027

7,584.31
225.839.41%
1,006

7,001.06▲342.58
8.63%
993

7,388.40
186.699.03%
996

6,993.66
222.698.95%
999

Non-Consolidated Results

Ordinary income decreased by ¥645 million year on year to ¥21.229 billion due to decreases in revenue related to securities.
Ordinary expenses decreased by ¥720 million year on year, to ¥17.783 billion. As a result, an ordinary profit of ¥3.445 billion was
posted.
(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
Securities2018¥22,473
3,394
2,573
8,670
9,600
80,1591,499,276
1,350,623
1,097,004
308,1022019¥23,0483,411
2,492
10,816
11,641
85,524
1,646,792
1,390,359
1,129,123
300,5012020¥23,245▲4,464▲3,982
10,816
11,641
78,956
1,585,837
1,386,907
1,156,716
287,1302021¥21,874
3,370
2,208
10,816
11,641
82,912
1,784,805
1,494,257
1,211,117
310,5242022¥21,2293,445
2,239
10,816
11,641
77,904
1,797,996
1,519,359
1,225,136
335,725

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

8,398.51
60
30
269.7922.23%
10.06%
942

7,380.63
65
35
223.2329.11%
9.14%
914

6,810.11
55
30▲343.75
-%
8.42%
901

7,149.32
60
30
190.6531.47%
8.79%
904

6,715.05
60
30
193.2431.04%
8.71%
906

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

30,00023,24521,87420,00021,229

4,000

3,370

3,445

2,500

0

10,0002,000▲ 4,4640▲ 2,500

0

2020

2021

Credit Rating

2022

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.

Profit(Millionsof Yen)

2,208

2,239

2021

2022

▲ 3,982▲ 4,000

2020

2021
AAA
AA
A
BBB
BB
B
CCC
CC
C
D

2022

2020

Our BankA-

Credit Rating : ARelevant Debt : long-term Preferred Debt
Credit Rating Agency :Japan Credit Rating Agency,Ltd.
(As of March 31, 2022)

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, asrequired.
• The‌Bank and its group companies are to comply with accounting standards and other relevant laws and regulations, and develop
a system to secure the trustworthiness of their financial reporting.
f. Matters related to employees who are obliged to assist with the duties of the Audit & Supervisory Committee• At‌ least one person is assigned to assist the Audit & Supervisory Committee in its duties.
‌g. Mattersrelated to ensuring the independence of the employees mentioned in the previous item from Directors (excluding Directors
serving as Audit & Supervisory Committee Members) and the effectiveness of instructions to said employees• In‌ cases where the employees are also obliged to assist in audit operations, for the purposes of assisting in such duties, said employees
are detached from the instructions of the operating departments, such as Directors (excluding Directors serving as Audit &Supervisory Committee Members), and obey the instructions and orders of the Audit & Supervisory Committee.
‌• Withregard to internal transfers and evaluations for employees obliged to assist in such matters, the opinion of the Audit &Supervisory Committee is respected.
h. Systems‌for Directors (excluding Directors serving as Audit & Supervisory Committee Members) and employees to report to the Audit &Supervisory Committee, and other systems for reporting to the Audit & Supervisory Committee.
‌• The
Directors (excluding Directors serving as Audit & Supervisory Committee Members) of the Bank and its group companies are toreport without delay to the Audit & Supervisory Committee on any significant matter that affects the Bank’s operations or financial
results. The employees of the Bank and its group companies are to report on such matter through a control department and by
way of a Director in charge and a group company Director. The Directors (excluding Directors serving as Audit & Supervisory
Committee Members) and employees of the Bank and its group companies must provide cooperation if asked by the Audit &Supervisory Committee to report on operations.
‌• Management
must not take any action detrimental to the reporting officer such as a disciplinary action and employee evaluation
downgrade on account of the above-mentioned reporting.
i. Other systems to ensure that audits of the Audit & Supervisory Committee are conducted effectively• The‌
Audit & Supervisory Committee cooperates with the internal audit department, etc., and regularly exchanges opinions in relation
to issues facing the Bank, issues with internal management structures, and so on. In addition, the Audit & Supervisory Committee
works to achieve appropriate audits, such as by listening to the opinions of the Accounting Auditor and external specialists.
j. Mattersrelated to policies for the processing of expenses and obligations arising from the execution of duties by the Audit & Supervisory‌Committee, such as procedures for prepayment of expenses or for reimbursement arising from the execution of said duties• When‌an Audit & Supervisory Committee Member requests prepayment of expenses required for the execution of duties, or
reimbursement, etc., the expense or obligation in question shall be processed promptly.

THE SHIMIZU BANK,LTD.
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.

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
Relationship of the taliban and others
Investment Trust Sales, etc

Discuss

Inspection

Markets andInternational Division
Report, Contact, Consult

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

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

Branches, Divisions, andGroup Companies, etc

Systems Targeting Anti-social Forces

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

Solicitation Policy
In line with the “Act on 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.

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
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 31,2021

March 31,2022

March 31,2022¥216,190¥186,746

523

563

US$1,525,585
4,606

1,000

1,000

8,173

310,148

335,368

2,739,714

1,204,283

1,217,888

9,949,254

1,939

771

6,301

13,62814,397

117,620

30,48230,723250,984

17,42017,291

141,255

7,169

6,958

56,848

9,113

8,999

73,521

4

4

36

1,132

1,328

10,849

503

621

5,079

366

516

4,218

19

1

8

117

104

852

206

358

2,927

2,308

4,755

38,850

4,658

5,344

43,658(7,897)(7,025)(57,390)¥1,795,397¥1,808,806

US$14,776,620(Millions of Yen)

(Millions of Yen)

(Thousands of U.S.Dollars)

March 31,2021

March 31,2022

March 31,2022¥1,490,782¥1,515,749

69,400-

US$12,382,564-

22,914

41,212336,679

111,455

151,452

1,237,254

9

9

76

8,172

11,271

92,083

469

469

3,831

357

305

2,495

47

38

313

-

295

2,414

60

88

720

4,658

5,344

43,658

1,708,326

1,726,237

14,102,091

10,816

10,81688,360

7,643

7,642

62,42964,06065,922538,535

(248)

(246)

(2,009)82,272

84,134

687,316

2,991(3,785)(30,925)

71

274

2,245

275

415

3,393

3,337

(3,095)(25,286)

72

93

767

1,388

1,436

11,732

87,071

82,569674,528¥1,795,397¥1,808,806

US$14,776,620

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 ￥122.41per U.S.$1, the approximate rate of exchange prevailing on March 31,2022.

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 Call Loans
Interest on Deposits with Banks
Other Interest Income
Fees and Commissions
Other Ordinary Income
Other Income
Other
Ordinary Expenses
Interest Expenses
Interest on Deposits
Interest on Negotiable Certificates of Deposit
Interest on Call Money
Interest Expenses on Cash Collateral Received for Securities Lent
Interest on Borrowings and Rediscounts
Other Interest Expenses
Fees and Commissions Payments
Other Ordinary Expenses
General and Administrative Expenses
Other Expenses
Provision of Allowance for Loan Losses
Other
Ordinary Profit (Loss)
Extraordinary Income
Gain on Disposal of Non-Current Assets
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)
Years ended
March 31,2021(Millions of Yen)
Years ended
March 31,2022(Thousands of U.S.Dollars)
Years ended
March 31,2022¥27,782¥27,421

15,531

15,835

US$224,014
129,361

12,502

12,478

101,943

2,903

3,046

24,885

0

-

-

111

307

2,513

13

2

19

10,276

10,55986,261

1,195

638

5,214

779

388

3,176

779

388

3,176

24,30723,436

191,460

562

454

3,716

345

278

2,272

1

0

0

(1)

(5)

(47)

178

142

1,162

33

29

239

5

10

88

6,008

6,067

49,569

567

911

7,445

15,48815,165

123,888

1,681

837

6,841

1,453

476

3,893

227

360

2,947

3,475

3,984

32,553

-

40

328

-

40

328

27

355

2,907

0

0

6

26

59

486

-

295

2,414

3,447

3,669

29,974

1,144

985

8,047

95

31

258

1,240

1,016

8,306

2,207

2,652

21,667

44

71

587

¥2,163¥2,580

US$21,079

Consolidated Statement of Comprehensive Income
Profit (Loss)
Other Comprehensive Income
Valuation Difference on Available-for-Sale Securities
Deferred Gains or Losses on Hedges
Remeasurements of Defined Benefit Plans, Net of Tax
Comprehensive Income
Comprehensive Income Attributable to Owners of Parent
Comprehensive Income Attributable to Non-Controlling Interests(Millions of Yen)
Years ended
March 31,2021(Millions of Yen)
Years ended
March 31,2022(Thousands of U.S.Dollars)
Years ended
March 31,2022¥2,207¥2,652

2,972(6,441)

US$21,667(52,620)

2,332(6,784)(55,427)

43

203

1,662

596

140

1,144

5,179

(3,788)(30,952)¥5,133(¥3,852)(US$31,473)

46

63

520

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 ￥122.41per U.S.$1, the approximate rate of exchange prevailing on March 31,2022.

THE SHIMIZU BANK,LTD.
16

Consolidated Statement of Changes in Net Assets
Years ended March 31,2021(Millions of Yen)
Shareholders' Equity

Balance at April 1, 2020

Share Capital

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

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

80,741¥62,534-

Cumulative Effects of Changes in Accounting Policies
Restated Balance

Treasury Shares

10,816

7,648-

62,534

Changes During Period
Dividends of Surplus

(637)

(637)

Profit (Loss) Attributable to Owners of Parent

2,163

2,163

Purchase of Treasury Shares(4)

Disposal of Treasury Shares

(0)

(0)

9

5

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

-

(4)

1,525

9

1,530

¥10,816¥7,643¥64,060(¥248)¥82,272

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

¥660

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

Share
Acquisition
Rights¥59

Cumulative Effects of Changes in Accounting Policies
Restated Balance

660

27

(320)

367

59

Non-Controlling
Interests

Total Net Assets¥1,343¥82,512

-

-

1,343

82,512

Changes During Period
Dividends of Surplus(637)

Profit (Loss) Attributable to Owners of Parent

2,163
(0)

Purchase of Treasury Shares

5

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

2,330

43

596

2,970

13

44

3,027

Total Changes During Period

2,330

43

596

2,970

13

44

4,558

Balance at March 31, 2021

¥2,991¥71¥275¥3,337¥72¥1,388¥87,071

Non-Controlling
Interests

Total Net Assets¥1,388¥87,071

Years ended March 31,2022(Millions of Yen)
Shareholders' Equity

Balance at April 1, 2021

Share Capital

Capital Surplus¥10,816¥7,643

Treasury Shares

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

82,248¥64,060(23)

Cumulative Effects of Changes in Accounting Policies
Restated Balance

Retained
Earnings

10,816

7,643

64,036(23)

Changes During Period
Dividends of Surplus

(695)

(695)

Profit (Loss) 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

(13)

(37)

1,374

87,033

Changes During Period
Dividends of Surplus(695)

Profit (Loss) 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

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 ￥122.41per U.S.$1, the approximate rate of exchange prevailing on March 31,2022.

THE SHIMIZU BANK,LTD.
17

Consolidated Statements of Changes in Net Assets
Years ended March 31,2022(Thousands of U.S.Dollars)
Shareholders' Equity

Balance at April 1, 2021

Share Capital

Capital Surplus

US$88,360

US$62,445

Treasury Shares

Total
Shareholders'Equity(US$2,029)

US$672,106(2,029)671,912

US$523,329(194)

Cumulative Effects of Changes in Accounting Policies
Restated Balance

Retained
Earnings

88,36062,445523,134(194)

Changes During Period
Dividends of Surplus(5,679)(5,679)Profit (Loss) Attributable to Owners of Parent

21,07921,079Purchase of Treasury Shares(15)

Disposal of Treasury Shares

(3)

(3)

22

7

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

-

(15)

15,40019

15,404

US$88,360

US$62,429

US$538,535(US$2,009)

US$687,316

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

US$24,434

Total
Deferred Gains Remeasurements Accumulated
or Losses onof Defined
Other
Comprehensive
HedgesBenefit Plans
Income
US$582

US$2,249

US$27,266

Share
Acquisition
Rights
US$593Cumulative Effects of Changes in Accounting Policies
Restated Balance

24,434582

2,249

27,266

593

Non-Controlling
Interests

Total Net Assets

US$11,340

US$711,306

(113)

(307)

11,227710,999

Changes During Period
Dividends of Surplus(5,679)Profit (Loss) Attributable to Owners of Parent

21,079(3)

Purchase of Treasury Shares

7

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

(55,360)

1,662

1,144

(52,553)174

504(51,874)(55,360)

1,662

1,144

(52,553)174

504(36,470)(US$30,925)

US$2,245

US$3,393(US$25,286)

US$767

US$11,732

US$674,528

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 ￥122.41per U.S.$1, the approximate rate of exchange prevailing on March 31,2022.

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 Reimbursement of Deposits
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 Decrease (Increase) in Call Money
Net Increase (Decrease) in Cash Collateral Received for Securities Lent
Net Decrease (Increase) in Foreign Exchanges-Assets
Net Increase (Decrease) in Foreign Exchanges-Liabilities
Net Decrease (Increase) in Lease Receivables and Investments in Leases
Interest Received
Interest Paid
Other, Net
Subtotal
Income Taxes Paid
Net Cash Provided by (Used in) Operating Activities(Millions of Yen)
Years ended
March.31,2021(Millions of Yen)
Years ended
March.31,2022(Thousands of U.S.Dollars)

Years ended
March.31,2022¥3,447
1,150
26
855
0
(206)
(576)
(9)
(5)
(15,531)562(1,065)(9)(2,847)0
51(54,296)
107,648
69,40043,983336(2,176)(25,558)(17)
7(1,302)
15,408(605)
2,809
141,482(333)
141,149¥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

US$29,974
8,322
486(7,125)(1)(1,243)
(421)
(75)
2,414
(129,361)
3,716
1,559
(55)
(43,185)
(321)
(326)
(111,139)
203,963(566,947)
326,747
3,667
149,4859,544(3)(11,296)
132,173(4,465)
16,58812,674(12,041)
632(70,556)
32,941
16,786
209
(385)
(89)
365
(4)
(20,733)(143,874)
97,23319,000
6
(865)
(285)
440
(9)
(28,354)(1,175,348)
794,328
155,224
56(7,072)(2,335)3,596(80)(231,631)

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

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

(182)
(3)
0
(5,676)(16)(5,877)14(236,861)
1,753,410
US$1,516,548

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 ￥122.41per U.S.$1, the approximate rate of exchange prevailing on March 31,2022.

THE SHIMIZU BANK,LTD.
19

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

Keiko Higashi*2
Youichiro Ito*2
Yoshiki Shimma*2
Yosuke Wakabayashi
Naoyuki Tamura
Nobuhide Fukazawa
Akihiro Mochizuki*3
Kazuaki Isobe*2∙*3
Makoto Kono*2∙*3
Shigeyuki Konagaya*2∙*3

Katsuichiro Toyoshima*1● President

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

As of June 30,2022

Satoshi Kobayashi
Masahiro Koyanagi● Executive Officers*1Representative Director*2Outside Director*3Audit & Supervisory Committee Members

Yasunobu Sugimoto
Hiroshi Nonomura
Yoshiyasu Ohata
Masaki Suzuki
Yasumasa Oki

Organization Chart

As of June 30,2022

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