Mizuho Financial Group2015 Integrated Report–Annual Review–(April 2014 – March 2015)

Mizuho has adopted a new brand slogan,“One MIZUHO: Building the future with you”, to indicate our commitment tobecome “The most trusted financial services group with a global presence and a broad customer base,contributing to the prosperity of the world, Asia, and Japan”.
All Mizuho employees are committed to realizing the ideas embodied in our brand slogan,and together we pledge to all of our stakeholders to help
Mizuho achieve its vision for the future.

(Domestic) Branches:

Approx.

800 branches, covering every prefecture in Japan(of which 180 are joint branches between MHBK, MHTB, and MHSC)
Approx. 6,700 (including joint ATMs between MHBK and Aeon)
ATMs:
ATMs Outside Branches: Approx. 50,000 locations (including joint ATMs with convenience stores)(Overseas) 110 offices worldwide, covering 38 countries and regions

Mizuho is the sole megabank to have branches in all 47 prefectures.
Additionally, it has the No.1* ATM network in Japan.
It also has approx. 50,000 remote ATMs nationwide (including those located in convenience stores).
As for overseas, Mizuho’s global network is comprised ofapprox. 110 offices in 38 countries and regions.
* Mizuho is No.1 in terms of the number of each megabank’s own ATM locations along with the number ofother ATM locations offering the same usage commission fees as MHBK membership service.
(This is based on the number of ATM locations following the arrangement for the joint usage of MHBK ATMs and Aeon Bank ATMs
<As of March 31, 2015, there were 1,826 MHBK ATM locations and 4,881 Aeon Bank ATM locations.>)2

Mizuho’s balance of assets under management amounts to approx. ¥50 trillion.
In addition, the number of individuals, who designate Mizuho as
an administrator for their Corporate Defined Contribution Pension Schemes, amounts to approx. 1 million.
Leveraging the overall integrated financial power of the Group, including the Group’s asset management companies,
Mizuho is in the top class of Japanese institutions regarding
asset management and pension fund trust services.

Balance of Assets under Management: Approx. ¥50 trillion
Number of Defined Contribution Plan customers: Approx. 1 million

3No.1 in Syndicated Loan Arrangement Amount in Japan
Arranged Amount: ¥9 trillion
Number of Deals: 489 deals

Syndicated loan arrangement requires a high level of coordination
capabilities to promote cooperation among multiple financial institutions.
Mizuho is in the top class of Japanese institutions regarding its syndication specialist staff and investor network.
Utilizing those strengths, Mizuho has maintained the top position in syndicated loan arrangements in Japanfor six consecutive fiscal years, with a 38.5% share in the league table for fiscal 2014.
This is an overwhelmingly strong position,
as Mizuho’s market share is 9.8 percentage points greater than that of the No.2 institution.

4

The number of M&A* transactions among Japanese companies
as well as among companies based in different countries is trending upward.
By means of concerted collaboration among its group companies in Japan andoverseas and drawing on its high levels of specialized expertise and abundant knowledge,
Mizuho earned the No.1 position in M&A advisory deals involving Japanese companies during fiscal 2014.
* Corporate mergers and acquisitions

No.1 in Number of Announced M&A Deals Involving Japanese Companies
Number of Deals: 167 Deals
Amount: ¥3.75 trillion

5Environment-related Funding:Approx.

¥626 billion(balance as of the end of fiscal 2014)

Heartful Loans and Heartful Private Placement*: Approx. ¥91 billion(balance as of the end of fiscal 2014)

Mizuho considers the provision of financial support for its customers’ environmental andsocial consideration-based initiatives to be a part of its social mission as a financial institution.
We are proactively promoting business that contributes to the sustainable development of society.
* Loans and private placements for companies offering products and services for and promoting employment among the elderly or disabled6

Mizuho supports financial education both in Japan and overseas,
based on the belief that it is essential for children,
who carry on our future, to have a deep understanding offinance in order to live independently in an increasingly complex and globalized society.

Participants of Mizuho’s Financial Education Programs: Approx. 41,000 participants(fiscal 2006-2014)7

Editorial Policy

Besides financial information, this Integrated Report
includes information regarding such subjects as corporate identity, corporate strategies, and ESG (environment, society, and governance). The report presents
information on Mizuho’s efforts related to strategies,
governance, corporate culture, and other subjects
along with information on how those activities are leading to the creation of value for Mizuho and the society
over the short-, medium-, and long-terms. It was editedwith the intention of providing stakeholders with concise
and clear explanations in a story-like form.
We hope this report will further improve understandingof Mizuho and its goal of being “the most trusted financial services group with a global presence and a broadcustomer base, contributing to the prosperity of theworld, Asia, and Japan.”This report serves as an annual report for the disclosure of key financial and business results, and it also
incorporates corporate social responsibility (CSR) disclosure functions that were previously carried out
th ro u g h th e i s s u a n c e of s e p a r ate C S R R e p o r t.
More-detailed information on CSR activities is posted
on Mizuho’s website, so readers are invited to utilize thisreport in conjunction with the website.

Guidelines Referred To

Scope of the report

International Integrated Reporting Council’s International Integrated Reporting Framework (published on December 2013)

Period covered: This report covers the period from April 1,2014 to March 31, 2015. However, it also
includes some information after April 2015.
Scope covered: In principle, MHFG and its subsidiaries andaffiliates

Publication Information
Date of issue: September 2015
Next scheduled publication date: September 2016

MHFG: Mizuho Financial Group
MHBK: Mizuho BankMHTB: Mizuho Trust & Banking
MHSC: Mizuho Securities

Inclusion in Socially Responsible Investment (SRI) Index (As of March 2015)
SRI is an investment approach that takes into consideration
not only approaches to finance but also approaches to social
responsibilities of companies. Mizuho is a component of both
the global SRI index “FTSE4Good Global Index” and “Morningstar Socially Responsible Investment Index” in Japan.
Strengthening Management Foundations on page 85 for participation in external initiatives

All figures contained in this report are calculated using accounting principles generally accepted in Japan (“Japanese GAAP”).

Forward-Looking Statements
This Integrated Report (Annual Review) contains statements that constitute forward-looking statements within the meaning of the United States Private
Securities Litigation Reform Act of 1995, including estimates, forecasts, targets and plans. Such forward-looking statements do not represent any guarantee by management of future performance.
In many cases, but not all, we use such words as “aim,” “anticipate,” “believe,” “endeavor,” “estimate,” “expect,” “intend,” “may,” “plan,” “probability,”“project,” “risk,” “seek,” “should,” “strive,” “target” and similar expressions in relation to us or our management to identify forward-looking statements.
You can also identify forward-looking statements by discussions of strategy, plans or intentions. These statements reflect our current views withrespect to future events and are subject to risks, uncertainties and assumptions.
We may not be successful in implementing our business strategies, and management may fail to achieve its targets, for a wide range of possible
reasons, including, without limitation: incurrence of significant credit-related costs; declines in the value of our securities portfolio; changes in interest
rates; foreign currency fluctuations; decrease in the market liquidity of our assets; revised assumptions or other changes related to our pension plans; adecline in our deferred tax assets; the effect of financial transactions entered into for hedging and other similar purposes; failure to maintain required
capital adequacy ratio levels; downgrades in our credit ratings; our ability to avoid reputational harm; our ability to implement our Medium-term Business Plan, realize the synergy effects of “One MIZUHO,” and implement other strategic initiatives and measures effectively; the effectiveness of ouroperational, legal and other risk management policies; the effect of changes in general economic conditions in Japan and elsewhere; and changes toapplicable laws and regulations. Further information regarding factors that could affect our financial condition and results of operations is included in“Item 3.D. Key Information—Risk Factors,” and “Item 5. Operating and Financial Review and Prospects” in our most recent Form 20-F filed with the U.S.
Securities and Exchange Commission (“SEC”). In addition, information regarding market developments after March 31, 2015 and their effects on our
financial condition and results of operations is included in the report on Form 6-K furnished to the SEC on July 24, 2015 containing financial information
for the first quarter of this fiscal year under accounting principles generally accepted in Japan. These reports are available in the Financial Information
section of our web page at www.mizuho-fg.co.jp/english/ and also at the SEC’s website at www.sec.gov.
The contents of this Integrated Report (Annual Review) were prepared prior to the announcement of our financial results for the first quarter of fiscal 2014.
We do not intend to update our forward-looking statements. We are under no obligation, and disclaim any obligation, to update or alter our forward-looking
statements, whether as a result of new information, future events or otherwise, except as may be required by the rules of the Tokyo Stock Exchange.

8

Contents[Appendix]
Mizuho’s Strengths
Financial Highlights

Inside of page 8

Profiles of Group Companies

92

Compliance Contacts

94

Risk Management Structure

95

Internal Audit Structure

109

Senior Executives

110

Location of Overseas Offices

112

Investor Information

115

Disclosure Policy

117

Privacy Policy Regarding Customer Information

118

Financial Analysis [Under Japanese GAAP]

119

Inside of page 9

Message from the Group CEO

10

Value Creation Process

20

Special Feature

22

Special Feature 1 “Growth-Oriented” Governance Reform Measures
Special Feature 2 Integrated Strategy between “Banking,Trust Banking and Securities” Functions
Special Feature 3 Fostering Industries with the Aim ofGenerating Business Opportunities

Growth Strategies

37

Business Environments
Medium-term Business Plan and Its Progress
Key Strategies for Fiscal 2015
Realizing the “New Frontier” of FinanceContributing to the Solution of Social Issues toPromote Sound Economic and Social Development

Business Approaches

49
Financial Data of Mizuho Financial Group, Inc.
[Under Japanese GAAP]

Personal Banking Unit
Retail Banking Unit
Corporate Banking Unit
Corporate Banking Unit (Large Corporations)
Financial Institutions & Public Sector Business Unit
International Banking UnitManagement Support for SME Customers andRegional Revitalization Initiatives

Strengthening Management Foundations

Non-Consolidated Financial Statements ofMizuho Financial Group, Inc. andThree Subsidiaries [Under Japanese GAAP]
Status of Capital Adequacy

127

227

241

65

Corporate GovernanceRisk Appetite Framework (RAF)
Risk Management
Compliance
IT Strategy
Measures to Form a Common Culture throughout the Group
Human Resources Strategy
Social Contribution Activities
Stakeholder Communications

Mizuho’s Office Network

86

Corporate Profile

88

Websites

89

9

Mizuho’s Strengths

1Mizuho’s Customer Base

2

Products Capability—Outstanding Performa
Convenient and High-Quality Products for In

Syndicated Loans (Japan)

Individual Customers
million(Approx. 1 in 5 Japanese Citizens)* Bookrunner basis(April 2014 to March 2015, financial closing date basis)

Proceeds (billions of ¥)Share (%)

1

Mizuho Financial Group

9,025.7

38.5

2

Mitsubishi UFJ Financial Group

6,713.5

28.7

3

Sumitomo Mitsui Financial Group

5,780.7

24.7

Rank Company Name

(Source) Thomson Reuters

amongJapanesebanks

Syndicated Loans (Asia, excl. Japan)* Bookrunner basis (USD, EUR, JPY, AUD, HKD, SGD)
(April 2014 to March 2015)

Comprehensive Securities Accounts
millionProceeds (millions of US$)

Share (%)

1Standard Chartered

8,484.1

6.6

2

ANZ Banking Group

6,674.7

5.2

3

DBS Group

6,628.9

5.2

4

Mizuho Financial Group

6,039.2

4.7

7

Mitsubishi UFJ Financial Group

5,227.2

4.1

12

Sumitomo Mitsui Financial Group

3,548.3

2.8

Rank Company Name

(Source) Prepared by MHBK based on data from Thomson Reuters

SME & Middle Market Borrowers, etc.

M&A Advisory forAnnounced Deals(Japan Corporations)based on No. ofDeals (No.2 in termsof rank value)* Number of deals basis (any Japanese involvement announced, excluding realestate deals)(April 2014 to March 2015)

No. of deals

Rank Value (billions of ¥)1

Mizuho Financial Group

167

3,753.4

2

Sumitomo Mitsui Financial Group

140

1,086.5

3

Nomura112

3,825.2

Rank Company Name

(Source) Thomson Reuters

Coverage of Listed Companies
in Japan%Cash Management Poll 2014 (Asia Money)
in CMS customer satisfactionlevel in Japan (MHBK)
Survey of three categories—large, medium, andsmall—based on net sales.
MHBK won the No.1 ranking in the large category.

Coverage of Forbes Global 200(Non-Japanese Corporate Customers)%

Inside page 1

in Product Enhancement in
the “Retail Banking Survey”
of Finance and investment
information paper
Nikkei Veritas

3

ance in the Corporate Finance Field andndividuals
Total Japan Publicly Offered Bonds* Underwriting amount basis (deals including straight bonds, investment corporation
bonds, Zaito agency bonds, municipal bonds (lead manager method only), Samurai
bonds and preferred securities)(April 2014 to March 2015, pricing date basis)

Underwriting Amount (billions of ¥)Market Share (%)

1

Mizuho Securities

3,036.5

19.6

2

Nomura2,789.8

18.0

3Mitsubishi UFJ Morgan Stanley

2,688.0

17.4

Rank Company Name

(Source) Prepared by MHSC based on data from I-N Information Systems

in bothunderwriting amountand market share

ABS Lead Manager*Amount basis(April 2014 to March 2015, settlement date basis)

No. of deals Underwriting Amount (billions of ¥)Rank Company Name
1

Mizuho Financial Group

179

1,155.6

2

Morgan Stanley

17

394.3

3

Sumitomo Mitsui Financial Group

8

342.8

(Source) Prepared by MHSC based on data from Thomson Reuters

Custody Annual Survey (Japan)

for 4
consecutive
years*Average score of six evaluation items. Mizuho won the top score for each of thesix evaluation items.
(January to December 2014)

Rank Company Name

Points1

Mizuho Bank

6.33

2

Bank of Tokyo-Mitsubishi UFJ

6.02

3

HSBC

5.83

(Source) Global Custodian Magazine’s “2014 Agent Banks in Major Markets Survey”

MCPC* award
Winner of the MCPC* award forconsecutive
years (MHBK)* Mobile Computing Promotion Consortium(industry-wide mobile computing promotion association)in the Annual Analyst Ranking(Overall Company Ranking) of
the finance and investment
information paper
Nikkei Veritas (MHSC)
in the 2015 All-Japan
Research Team Ranking ofInstitutional Investor,
the financial magazine for
global investors (MHSC)

Inside page 2

Industry Expertise—No.1 Industry
Research Unit among Japanese Banks

Organization
A global network of research bases in Japan, Europe, theUnited States, and Asia with staff members of approximately
170 people conducting research on a wide range of industry
categories and industries.

Functions
The Industry Research Division proposes global and comprehensive solutions to customers by integrating its “three functions” based on its “deep understanding and accumulated
expertise on industries and companies.”• “Industry analyst function”
Provides a wide range of industry expertise regarding industry trends in Japan and overseas.
• “Strategist function”
Provides business strategy development support and policy
advice based on a background of solid industry expertise.
• “Corporate finance support function”
Supports the formulation of customers’ financial and management strategies.

“Industry analyst
function”“Strategist
function”“Corporate
finance support
function”

Japan

Overseas

Disseminating Information
Publishes Mizuho Industry Research, Mizuho Industry Focus,
and other research reports offering a wide range of perspecouttives on overall structural changes in industries, industry out
looks, and other industry-related issues.

Financial Highlights
Consolidated Net Income(billions of ¥)800

Net Business Profits (Two Banks)(billions of ¥)

1,000
688.4
630.0

611.9
600

846.3

560.5
800

484.5

742.3

413.2

728.1

721.3

400

642.6
600

200

0

FY2010FY2011FY2012FY2014FY2013Gross Profits (Two Banks)

FY2015(Estimate)(billions of ¥)

2,000

0

FY2011FY2012FY2013

G&A Expenses (Two Banks)

FY2014(billions of ¥)2,000
1,611.1

1,686.1

1,607.5

1,629.7
1,506.8

1,500

1,500

1,000

1,000

500

500

0

FY2010FY2010FY2011FY2012FY2013

FY2014Gross Profits by Business Segment(managerial accounting)

FY2014

Domestic
Individuals
12%

Securities
15%

Banking75%(1)

Trust Banking
7%(3) Corporate Banking Unit
(Large Corporations) 14%(4) Corporate Banking Unit 8%

879.3

839.7

864.2

908.3

FY2010FY2011FY2012FY2013

FY2014

Proportion of Income from
Overseas Customers(Net Business Profits)

Proportion from Non-interest
Income from Customer Groups(Gross Profits)(MHBK+MHTB+MHSC, managerial
accounting)(MHBK+MHTB+MHSC, managerial
accounting)

FY2014FY2014(2)
Overseas
Customers
33%(3)(1) Personal Banking Unit 12%(2) Retail Banking Unit 6%

0

868.7

(8)
(4)

(7)

(5) Financial Institutions &Public Sector Business Unit 3%

(6)

(5)

Domestic
Corporations
30%

Domestic
Customers
67%

Net interest
Income50%

Non-interest
Income50%(6) International Banking Unit 14%(7) Trading & Others 11%(8) Others (including Overseas Subsidiaries) 8%

Overseas
14%

Notes: 1. Two Banks: Aggregate figures for MHBK and MHTB on a non-consolidated basis.
2. BK+TB+SC: Aggregate figures for MHBK, MHTB and MHSC (including major subsidiaries) on a non-consolidated basis.

Inside page 3

Consolidated Balance Sheet (as of March 31, 2015)
Consolidated Total Assets ¥189 trillion

Loans¥73 trillion

Deposits,
Negotiable Certificates of Deposits (NCDs)¥113 trillion

Securities ¥43 trillion
JGB ¥21 trillion

Stock ¥4 trillion

Other Liabilities¥66 trillion

Other Assets¥72 trillion

Net Assets ¥9 trillion

Loan Balance * (Average balance, Two Banks)
80

BIS Capital Ratio(%)

Domestic Offices
Common Equity Tier 1 Capital Ratio

70
60(trillions of ¥)Overseas Offices

61.1

62.3

6.6

8.1

71.5

68.2

64.5

Total Capital Ratio

16.7

13.1

10.7

Tier 1 Capital Ratio

20

50

54.4

54.1

55.0

53.7

54.7

10

11.50

11.35

11.03
30

14.58

14.36

14.19

15

40

9.43

8.80

8.16

20
5
10
0

FY2010FY2011FY2012FY2013

FY20140

As of March
31, 2013

As of March
31, 2014

As of March
31, 2015* Excluding loans to MHFG. “Overseas offices” is calculated based on an aggregate ofbanking and trust account basis and represents loans booked at overseas offices,
including the impact of foreign exchange translation

Balance of Disclosed Claims under the
Financial Reconstruction Act (FRA)(trillions of ¥, %)Cash Dividend per Share of Common Stock
8(Two Banks)
Claims against Bankrupt and Substantially Bankrupt Obligors

(¥)

7.5

7.5

FY2014FY2015(Estimate)

6.5

Claims with Collection Risk
Claims for Special Attention

6

6.0

6.0

6.0

FY2010FY2011FY2012

Non-performing Loan (NPL) Ratio(trillions of ¥)
2.0
1.5
1.0

1.2
1.72%

(%)
4

1.1
1.63%

3

1.2
1.71%

0.9

1.0

1.21%

1.20%

0.5
0.0

4

2

2

1

As of March
31, 2011

As of March
31, 2012

As of March
31, 2013

As of March
31, 2014

As of March
31, 2015

00FY2013

Note: The above contains statements that constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of1995. See the disclaimer at the bottom of page 8 of this Integrated Report (Annual Review) for information regarding factors that could cause actual results todiffer from those in the forward-looking statements.

Inside page 4

Message from the Group CEO

Preparing to Realize“Competitive

Yasuhiro Sato
President & Group CEO
Member of the Board of Directors
Mizuho Financial Group, Inc.

Phase I(-1980s)

History of the
Financial Industry
Mizuho’s History

10

Commercial banks,
securities companies andinsurance companies
coexisted Independently

Regulatoryenvironment
Introductionof Basel I(1988)

Mizuho’s Vision through Utmost Efforts to Establish
Advantages” and Dedication to Mizuho’s Social Mission
I, as President & CEO of Mizuho Financial Group, would

To enable readers of this report to gain a better under-

like to express our deep appreciation for your continued

standing of Mizuho, I would like to offer a review of our Cor-

interest in and support of our Group.

porate Identity and the key concepts associated with ourDuring the two years that have passed since we adopted a new Corporate Identity and began implementing our

medium-term business plan before explaining our fiscal 2014business results and our plans for the current fiscal year.

three-year medium-term business plan, the “One Mizuho

When conceiving our Corporate Identity and drafting

New Frontier Plan—Stepping Up to the Next Challenge—,”our medium-term business plan, our first step was to con-

we have been implementing an strategy for meeting cus-sider the things that a financial institution can do on behalf

tomers’ diverse needs by comprehensively integrating ourof its customers and society at large. Next—while over-“banking, trust banking, and securities functions” (the One

viewing the economic and societal structural changes,

Mizuho strategy). Regarding our management foundations,changes in the regulatory environment taking place in

we have strengthened our holding company functions,Japan and other countries as well as reviewing the course

transitioned into a “Company with Three Committees”

of industrial history and financial history, surveying the(referred to as a “Company with Committees” prior tokinds of business model transitions that have been madeenforcement of amendments to the Companies Act), andin the financial industry, and finally considering the pasttaken other initiatives to build an advanced governancedecade or so of Mizuho’s own history—we moved forward

system while also striving to establish and deeply embed awith deliberations about the essential elements of our own

strong corporate culture.

prospective business model.

Phase II

Phase IIIEra of conglomerates
and mega banks

Era of investment banks
and proprietary transactions(1990s)(2000s)Financial system reform Merger between Citicorp and Travelers(1992)(1998)

Japanese“Big Bang”
financial reform(1996)US GrammLeachBliley Act(1999)End ofhigh return business model of
non-conventional
investment banking

Phase IV
(2010s-)Pursuit of“New Financial Services”

Subprime
Mortgage
CrisisLehman Crisis

Introductionof Basel II(2003)

Tightening of regulations
US Dodd-Frank Act(2010)

Always standing at the forefront of its time, Mizuho’s
DNAPhase-in introductionof Basel III(2013)

Pursuit of ideal model
for Financehas carved out history“One Mizuho New Frontier Plan
—Stepping Up to the Next Challenge”(FY2013-2015)

Announcement ofmerger of the three
former banks(1999)

Establishment of
MHFG(2000)

Establishment of
first mega bank in Japan

Turning of
MHTB and MHSC
into wholly-owned
subsidiaries of
MHFG

Establishment of
MHBK and
former Mizuho
Corporate Bank
(2002)

Listedon NYSE(2006)(2011)

Organization based on customer
segments, created through split and merger
method, the first full-scale case in Japan

Substantive
One Bank
Unified managementof banking,trust banking andsecurities functions(2012)

Merger of banks
Merger of securities
companies(2013)

Single bank andsingle securities structure

Transition to“Company with Three
Committees” structure
Strengthening
functions of theholding company(2014)

Further promoting the integrated
strategy between banking,trust banking and securities functions

11

Message from the Group CEO

During the first decade of this century, which corresponds to Phase III of Mizuho’s history (see chart on pagecustomers’ needs and fulfilling its social mission as afinancial institution.”11), we achieved strong performance by assuming excessive risks in propriety trading designed to generate highMizuho’s Corporate Identity

profit levels, but that business model met its demise after
the emergence of the subprime mortgage crisis and theBased on this kind of historical perspective and ourLehman Crisis. I now view our Phase III as a “financial

intense consciousness of what our customers and society

capital supremacy” period during which we unduly dis-are expecting from us, we have created our Corporate Phi-tanced ourselves from our customers’ actual needs, andlosophy, which states that our primary role is—“bringing

we are rethinking the question of “what a financial institu-

fruitfulness for each customer and the economies and thetion ideally should be” based on the lessons learned

societies in which we operate. Mizuho creates lastingfrom that phase. Having entered the century’s second

value. It is what makes us invaluable.”

decade (Mizuho’s Phase IV), we are continuing to explore

In other words, we are fundamentally committed to main-

and refine our conception of “new frontier” of finance,

taining close relationships with individual customers andbut the Mizuho DNA that has evolved over the course

providing them with the support they need at importantof our history is clearly telling us that a financial institu-

points in their lives to realize their hopes and dreams, andtion’s most important role is “thoroughly responding to

we are equally committed to maintaining close relationships

Mizuho’s Corporate Identity

Corporate
Philosophy
Mizuho’s fundamental
approach tobusiness activities,
based on the raisond’etre of Mizuho

VisionCorporate Identity

Vision of
medium-termbusiness plan
Mizuho’s vision
for the future,
realized through thepractice of“Corporate Philosophy”

Mizuho, the leading Japanese financial services group with a global presence and abroad customer base, is committed to:Providing customers worldwide with the highest quality financial services withhonesty and integrity;
Anticipating new trends on the world stage;
Expanding our knowledge in order to help customers shape their future;
Growing together with our customers in a stable and sustainable manner; andBringing together our group-wide expertise to contribute to the prosperity of
economies and societies throughout the world.
These fundamental commitments support our primary role in bringing fruitfulness foreach customer and the economies and the societies in which we operate. Mizuho
creates lasting value. It is what makes us invaluable.

The most trusted financial services group with a global presence and a broad customer base, contributing to the prosperity of the world, Asia, and Japan.
The most trusted
financial services group

The best financial
services provider

The most cohesive
financial services group

To maximize our extensive
expertise and collective
capabilities as experienced
financial services professionals

To continuously provide
the best leading-edge
financial services

To be our customer’s
most trusted partner

Mizuho Values

Values
The shared values andprinciples of Mizuho’s people,
uniting all executives andemployees together to pursue “Vision”

12

CustomerFirst:

Innovative
Spirit:Team Spirit:

Speed:

Passion:The most trusted
partner lighting
the future

Progressive andflexible thinking

Diversity andcollective strength

Sharpness andpromptness

Communicationand challenge
for the future

with our corporate customers and utilizing sophisticated risktaking and financial intermediary functions to facilitate M&Atransactions, capital investments, and other initiatives those

The Medium-term Business Plan
“One Mizuho New Frontier Plan
—Stepping Up to the Next Challenge—”customers undertake to realize their plans for vigorous corporate development in the future. By providing support for

We consider our medium-term business plan’s implemen-

our customers’ sustained growth, we believe we can help

tation to be the first step toward realizing Mizuho’s “Vision.”

customers shape their future and contribute to the prosperi-

Based on our deliberations about the essential elements of

ty of economies and societies throughout the world.

“new frontier” of finance and our analyses of Mizuho’s cur-

Secondly, to realize our Corporate Philosophy, we haverent situation, we drafted the plan’s ten basic strategies

set Mizuho’s “Vision,” which describes what we consider

and five basic policies with an eye to responding to current

to be the ideal nature of our corporate evolution over thechallenges and guiding the direction of our corporate

medium- to long-term. This “Vision” calls for Mizuho todevelopment going forward.

become—“The most trusted financial services group withAmong these strategies and policies, we consider thea global presence and a broad customer base, contribut-

One Mizuho strategy to be of central importance in realiz-ing to the prosperity of the world, Asia, and Japan”—by

ing our vision. There are two main reasons for our empha-

means of efforts to be “the most cohesive financial ser-sis on the One Mizuho strategy.

vices group,” “the best financial services provider,” and“the most trusted financial services group.”First, the One Mizuho strategy is a key means of effectively responding to customers’ needs. Because custom-

Finally, we have the Mizuho Values—the shared values

ers’ needs have become increasingly diverse and sophis-and principles that coordinate our efforts to pursue ourticated over the years, it has become increasingly difficult“Vision.” We have instituted five Mizuho Values, which are

to respond to those needs by separately providing bank-shown in the chart on the left. Our objective is to ensure

ing, trust banking, and securities services. We believe thatthat each and every employee puts the Mizuho Values into

the most effective way to respond to customers’ needs

practice in a sustained manner and thereby fostering aentails coordinating banking, trust banking, and securities

sense of unity. We intend to pervasively promote the pro-functions so that we can offer powerful and sophisticatedgressive embedding of that sense of unity to fortify andconsulting capabilities and provide solutions that compre-

augment the kind of corporate culture that we consider tohensively address the challenges customers are facing. In

be a core characteristic of Mizuho’s identity.

view of this, the One Mizuho strategy was designed to be a

Five Basic Policies and Ten Basic Strategies in Our Medium-term Business Plan
<Five Basic Policies>
1. Further develop integrated strategies
across the group for each customer
segment to respond to the diverse
needs of our customers
2. Contribute to sustainable developmentof the world and Japan by proactively
responding to change<Ten Basic Strategies>

Business
Strategy(1) Strengthen integrated financial services by unifying banking, trust banking, and securities functions to respond to finely detailed corporate and personal banking segments(2) Perform consulting functions taking advantage of our industry and business knowledge and forward-looking perspective(3) Support formation of personal financial assets in Japan and invigorate their investment(4) Strengthen proactive risk-taking functions for growth industries and corporations(5) Strengthen and expand Asia-related business in Japan and on a global basis(6) Cultivate multi-level transactions by capturing the accelerating global capital andtrade flows

Business
Management,
Management
Foundations,etc.

(7) Strengthen stable financial foundations based on abundant liquidity and appropriate
capital levels(8) Establish the optimal management foundations (human resources and business
infrastructure) to support business strategy(9) Further strengthen proactive governance and risk management(10) Embed the new Mizuho corporate identity toward forming a common culture throughout the group and take actions toward being the best financial services provider

3. Mizuho Means Asia: accelerate globalization
4. Build strong financial and managem e nt fo u n d ati o ns to su p p o r t th eessence of Mizuho
5. Form strong corporate governance andculture in the spirit of One MIZUHO

13

Message from the Group CEOmeans of responding to customers’ needs with great
effectiveness, and one of the reasons we are emphasizing
the One Mizuho strategy is that we strongly desire to
respond to customers’ needs as thoroughly as possible.
A second reason for emphasizing the One Mizuho strategy is our desire to concurrently respond to regulatory
requirements and cater to the interests of stakeholders
centered on shareholders and investors. Trends in the
post-Lehman crisis regulatory environment have required
increases to our Common Equity Tier 1 (CET1) capital ratio
and other equity ratios, but investors and other stakeholders are simultaneously demanding that we make moves in
the opposite direction to boost our return on equity (ROE).
To concurrently respond to both kinds of demands, it isimportant for us to elevate our return on risk-weighted
assets (RORA), and this basically means expanding our
non-interest income. We are combining the Group’s comprehensive range of strengths to thoroughly respond to
customers’ needs without excessive dependence on business leveraging our balance sheet, and this requires us toincrease the diversity of our non-interest income sources
associated with such fee-based services as transaction

Accordingly, we are implementing the One Mizuho strat-

and advisory services, product- and securities-related

egy as a means of thoroughly responding to customers’

businesses, trust-related businesses, and asset manage-

needs while at the same time responding to regulatory

ment businesses.

requirements and the expectations of our shareholders
and investors.

Fiscal 2014 Results and Progress in
Implementing the Medium-Term Business Plan

Collaboration between Banking,Trust Banking and Securities Functions
Meet all customers needs
Trust
agreement
agent

Multi-layer transactions

Bankagencyservice

Trust
Bank

dated net income amounted to ¥611.9 billion, a favorable

Bank

Lending, Deposit,
Remittance,
Securitization/Liquidation,
Pension, Derivatives,
etc.
Real Estate, Customers
M&A,
Pension,Equity, Bond,
Transfer Agent,
Investment Trust,
Securitization,etc.
Testamentary,etc.

Turning to our financial results for fiscal 2014, our consoli-

Financial
instrumentsintermediaryserviceresult exceeding our ¥550.0 billion target. Concerning capital
adequacy ratio, our Common Equity Tier 1 (CET1) capitalratio (on a fully-effective basis, including the Eleventh
Series Class XI Preferred Stock)* was 10.46%, exceeding the
8% target level we set in our medium-term business plan.
As for the progress of our current medium-term business plan, the transformation of profit structure centeredon Customer Groups, the synergies generated by the One

Securities

Mizuho strategy, and other factors enabled us to meet various business plan targets ahead of schedule. Overall, theplan’s implementation proceeded smoothly.

Trust agreement agent

14* Estimated figures under fully-effective basis as expected to be in effect at theend of fiscal 2018. Although preferred stocks are not classified as CET1 capital
under Basel III, our calculation includes the Eleventh Series Class XI Preferred
Stock (mandatory conversion date: July 2016) in CET1 capital.

A Year of Establishing “Competitive
Advantages” and Accelerating Reforms

years of strong performance and other factors indicate tous that the promotion of a business model based on thecollaboration of banking, trust banking and securities

We are positioning fiscal 2014—the third and final year offunctions ahead of our competitors is generating positive

our medium-term business plan—as a year in which we

results in line with our expectations. To realize the “Cus-will do our utmost to establish “competitive advantages”

tomer First” value that is a core element of Mizuho’s Vision,and attain the business plan’s various targets.

however, we see a need to promote still further evolution of

We have drafted and been implementing the medium-term

the One Mizuho strategy. One important way of doing thisbusiness plan to realize Mizuho’s Vision for the future.

is to view the customers of individual group companies as

Earning power based on strong competitiveness and acustomers of the entire Group and move ahead withsolid capital base is an important prerequisite for realizing

efforts to provide those group customers with services in a

the Vision, and we believe that continuing to augment thegroup-wide manner. In addition, aiming to further polishscale and stability of our profitability and establish compet-

the specialized capabilities of MHBK, MHTB, and MHSC

itive advantages will enable us to take on an even greaterand thereby elevate the competitive power of each ofsocial mission than ever before.

these companies, we are planning to undertake the following measures during the current fiscal year.

Further Evolution of the One Mizuho Strategy

Our plans call for MHBK to leverage the Group’s customer base by striving to establish even stronger relation-

We are taking two specific approaches to establishingships with customers as a means of expanding business“competitive advantages.”

operations in Japan as well as overseas while also endeav-

The first approach involves promoting the additional
evolution of the One Mizuho strategy. Two consecutive

Medium-term Business Plan

ROE(Consolidated)

Approx. 9%

TargetFiguresCommonRORA(FY2015)
Equity Tier 1(Consolidated
Capital Ratio*1
Net Income on(Fully-effective basis*2)
Risk-weighted Assets)

8% or higher

Approx. 0.9%

Profitability
Efficiency

Soundnessoring to augment its transactional and profit bases in amanner that supports sustained growth.

Financial Highlights (inside pages 3 and 4)
FY2014 Results

FY2015 Plan

Plan for the final year of theMedium-term Business Plan

Consolidated ROE

10.0%*3(8.3%)Mid 9% range*3(Approx. 8%)

Approx. 9%

RORA(Consolidated Net Income on
Risk-weighted Assets)

0.9%

Approx. 0.9%

Approx. 0.9%

Common Equity Tier 1
Capital Ratio*1

10.46%

10 to 11%8% or higher

Consolidated Net Income¥611.9 billion¥630 billion¥550 billion level

Group Expense Ratio*4

59.0%

Mid 50% range

Mid 50% range

Expense Ratio(Banking Subsidiaries)*5

55.7%

Lower 50% level

Lower 50% level

Ratio of Stock Portfolio
against Tier 1 Capital*6

25.5%

25% or lower

Approx. 25%(Fully-effective basis*2)*1. Common Equity Tier 1 (CET1) capital ratio was 9.43% as of March 31, 2015. Although preferred stocks are not classified as CET1 capital under Basel III, both ourplanned and actual figures include the Eleventh Series Class XI Preferred Stock (mandatory conversion date: July 2016) in CET1 capital.
*2. Estimated figures under fully-effective basis as expected to be in effect at the end of fiscal 2018.
*3. Excluding Net Unrealized Gains on Other Securities basis. Figure shown in ( ) includes Net Unrealized Gains on Other Securities.
*4. MHBK+MHTB+MHSC*5. MHBK+MHTB*6. After taking into consideration the hedging effects. Also, although preferred stocks are not classified as CET1 capital under Basel III, both our planned and actual
figures include the Eleventh Series Class XI Preferred Stock (mandatory conversion date: July 2016) in CET1 capital.

15

Message from the Group CEO

Operating as “trust professionals,” MHTB will be work-

Our allocation of management resources is being con-ing to further increase the sophistication of its specialized

centrated in those key focus areas, and we are stepping

capabilities related to real estate, consulting, and asset

up our efforts to further increase the intensity of collabora-

succession, and other trust business areas.

tion among group companies in those areas.

To provide customers with high-value-added financial

As announced in March 2015, we have formed a strate-services, MHSC will be further strengthening its securities

gic policy for integrating our asset management groupfunctions with respect to the domestic business promo-companies in order to strengthen our asset managementtion, markets and products, and investment banking areas.

business. By implementing this policy, Mizuho aims to

As each company augments its specialized capabili-

become a leading player in the industry in terms of bothties and competitive power in these ways and thereby

quality and size, providing the highest quality solutions andcombining them as One Mizuho, we will be placing themanaging one of the highest volume of assets under man-Group in a still stronger position to build close relation-

agement in Japan. Aiming to make asset management theships with customers of the Group, earn still stronger

fourth pillar of group businesses—after banking, trustevaluations from customers regarding its capabilities forbanking, and securities businesses—we are deepening themeeting their needs, and consequently increase its provi-

level of group-wide collaboration in the asset management

sion of a comprehensive range of high-value-added prod-

area and are thereby putting the Group in a better positionucts and services.

to utilize its comprehensive range of capabilities to respondto customer needs.

Thoroughly Strengthening Capabilities inFour Key Focus Areas
The second approach is selecting key business areas andconcentrating our resources in those areas. We have

Financial Strategy Focused on
Transformation in Quality of the Profit
Structure and Capabilities for Responding toStricter Regulations and Risks

selected four key focus areas—transactions with large corporations, transactions with corporations and their owners,

Further reforming our profit structure is a key objective oftransactions with non-Japanese blue chip companies, andour financial strategy for fiscal 2015. In the final year of ourasset management—and have established a structure incurrent medium-term business plan, measures centering

which the entire Group will focus its efforts in those areas.

on our One Mizuho strategy will be taken to increase theFour Key Focus Areas
Transactions withlarge corporate customers

Transactions with
Non-Japanese blue chip customers

Establish competitiveness in thearea of financial transactions with large
corporate customers

Development of the Super 30 Strategy
Expand overseas customer base and strengthen thecollaboration between banking and securities functions

Further progress of collaboration between banking,trust and securities functions

Transactions with
SMEs and middle-market corporations

16

Four Key
Focus Areas
Asset Management Business

Enhance integrated approach toboth corporations and their owners

Make asset management
the “Fourth Pillar” of our business

Further strengthen the collaboration between banking,trust banking, and securities functions
as well as consulting functions

Collaboration between banking, trust banking,securities and asset management functions,and internal restructuring of asset management functions

proportion of income from Customer Groups with particu-

corporate governance owing to the initiatives it has taken

lar emphasis on non-interest income, which will lead to a

to strengthen holding company functions, shift to a “Com-qualitative transformation of our profit structure. In addi-pany with Three Committees,” and promote various othertion, we are concurrently aiming to increase proportion ofkinds of reforms aimed at enhancing its governance sys-

income from overseas customers, which is considered atems. In addition, we have begun the full-scale use of our

growth field.

Risk Appetite Framework during the current fiscal year.

As a financial service group with global operations, we

The Risk Appetite Framework is designed not only to

are working on transformation in quality of our profit struc-constrain excessive risk taking but also to encourage ade-ture and other measures to achieve a steady strengthening

quate risk taking based on the concept that “risks worthof our capital base in light of the global trend toward stricter

taking should be taken.” The framework facilitates effective

financial regulations. We are also diversifying and stabiliz-

utilization of our resources and we consider it to be a key

ing our foreign currency funding base as well as imple-

foundation for supporting the Group’s sustainable growth

menting efficient balance sheet management by promoting

going forward.

a business model based on asset turnover and other mea-

We have defined Mizuho’s risk appetite as the level andsures. Regarding cross-holdings of shares, unless we con-type of risk management is willing to assume in order tosider these holdings to be meaningful, we will not hold therealize our business and financial strategies. In addition,

shares of other companies as cross-shareholdings. Going

we have established our Risk Appetite Policy in threeforward, we will be rigorously examining whether suchlayers which articulates our qualitative risk appetite from aholdings are meaningful.

universal, medium-term and short-term perspective. The
first layer which expresses our universal risk-taking

Enhancing Corporate Governance with
Emphasis on “Growth-Oriented Governance”
and Promoting Risk-Taking with a Focus on
Customers’ Actual Circumstancesdomain, focuses on taking appropriate risk where our cus-

Mizuho is working to increase the sophistication of theRepor t with the Tok yo Stock E xchange. This repor t

management foundation supporting its business strategies

describes our actions in response to the Corporate Gover-and financial strategies.

nance Code. The Corporate Governance Code aims to

tomers’ actual needs exist. This approach is in harmony
with our Corporate Identity, and provides foundation forrisk governance in order to realize our Corporate Identity.
In June 2015, we filed our Corporate Governance

Mizuho is already a leading company with respect torealize growth-oriented governance by promoting timely

Mizuho’s Risk Appetite Policy
Universal Risk Appetite Policy
I

Universal risk-taking domain for realizing Mizuho’s Corporate Identity

By taking risk and providing solution based on our customers’ actual needs, establish our competitive advantage against ourpeers, maximize our corporate value by acquiring sustainable and stable revenue and fulfill our social responsibility

Short- to Medium-Term Risk Appetite Policy
II

Risk Appetite Policy based on our medium-term objectives

III

Risk Appetite Policy based on our single-year objectives

17

Message from the Group CEO(PT). Having myself assumed the position of PT leader, I
have been working to ensure the PT expeditiously performs its missions of making each group employee familiar
with the various features of Mizuho’s Corporate Identity
and the medium-term business plan as well as promoting
each group employee’s practice of Mizuho Values. One
par t of the PT’s campaign has called for each of theGroup’s offices to create “Visions of Individual Offices” byarranging for each employee of the office in question toconsider related issues on their own; participate in discussions of those issues together with their superiors, subordinates, and colleagues as well as sometimes with colleagues from other offices; and proactively deliberate
about the kinds of characteristics that their office should
be seeking to cultivate. In the course of those discussions,
I was pleased to note signs that a corporate culture thatencourages individual employee’s self-directed actions
was taking root, as reflected in numerous employees’comments about the pride they feel for their office andtheir desire to further improve their office for the benefit ofcustomers. The PT’s campaign is promoting more-active
exchanges between group employees and customers aswell as other people in local communities.
and decisive decision making based upon transparent andWe are taking various other measures to foster a strong

fair decision making through the fulfillment of companies’

corporate culture. These include the arrangement of “Dis-accountability in responsibilities to various stakeholders

cussions with senior management,” in which executive offi-

including shareholders. Mizuho has decided to comply

cers are visiting each office in Japan and overseas towith all of the principles after considering each principle ofexchange ideas with those offices’ employees, and “Gen-the code.

eral Managers Off-Site Meetings,” in which general manag-

G o i n g fo r wa rd, b a s e d o n d u e c o n s i d e r a ti o n ofers of MHBK, MHTB, and MHSC offices gather and dis-demands for the strengthening of corporate governancecuss such agenda items as the action plans each manager

both in Japan and overseas, Mizuho will sustain its efforts

is planning to implement as a means of establishing a

to enhance its corporate governance systems and ensure

strong corporate culture in their respective offices. I believe

they are appropriate for a Global Systemically Importantthat these measures are steadily increasing the permeation

Financial Institution (G-SIFI).

of Mizuho Values into the minds of each group employee,
and I am confident that this process is effectively enabling

Forming a Strong Corporate Culture that
Supports Strong Governance

us to make a strong corporate culture take shape and put

One important prerequisite for effectively moving forward

CSR Initiatives

down deep roots.

with our business strategies and enhancing our gover-

18

nance system is the establishment of a strong common

As a Japan-based comprehensive financial group, Mizuho isculture throughout the Group.

undertaking corporate social responsibility (CSR) activities

In 2015, along with the establishment of our Corporate

designed to make contributions to Japan’s economic and

Identity and start of our new medium-term business plan,social development and to the strengthening of Japanese

we established our One Mizuho Promotion Project Team

industries’ competitiveness. Regarding agriculture, medicalcare, energy, and other industries, we are taking such initia-

geopolitical risks, and market environments remain unstabletives as those to invest in funds for fostering the develop-with respect to interest rates, forex rates, and natural

ment of the sixth industry for the agriculture, forestry, andresource prices. Amid this environment, Mizuho will contin-

fishing sectors and of the health and medical care indus-

ue doing its utmost to be invaluable to its customers bytries, and to finance renewable energy businesses.

effectively supporting their sustained growth and develop-

Furthermore, Mizuho continues to offer its combined

ment and to bring customers fruitfulness by acting as theirgroup strengths to assist in rebuilding the lives of people

most trusted partner. In accordance with the fundamental

afflicted by the Great East Japan Earthquake and reviving

meaning of the One Mizuho concept, all group employees

the industries and economies that have suffered as awill be working as one to provide customers with optimal

result of the earthquake, as well as support the recovery ofsolutions for all the challenges they face.

disaster-stricken areas. For example, the Mizuho Forest
Project is aimed at reviving the disaster-prevention forest

We sincerely appreciate your continuing support forthese endeavors.

planted along the coast of Fukushima Prefecture, which
was severely affected by the earthquake-driven tsunami.
We also continue to proactively support social contribution

July 2015

initiatives associated with our business, such as ongoing
financial education support programs that encompass
offerings of donated lectures and courses, visits to elementary, middle and high schools by our employees toteach classes as guest instructors, and accepting students
for work experience.

Yasuhiro Sato
President & Group CEO
Member of the Board of Directors
Mizuho Financial Group, Inc.

Further Strengthening the Mizuho Brand
Aiming to further strengthen the Mizuho Brand, we areendeavoring to undertake effective brand communications
activities through our efforts to achieve our fiscal 2015
business plan targets and the April 2015 inauguration of

Note: The above contains statements that constitute forward-looking
statements within the meaning of the United States Private
Securities Litigation Reform Act of 1995. See the disclaimer atthe bottom of page 8 of this Integrated Report (Annual Review)for information regarding factors that could cause actual results
to differ from those in the forward-looking statements.

the Mizuho Heartful Action Project, which has engaged indiverse activities that benefit people facing challenges,
including those associated with age and disabilities.
Moreover, Mizuho is making conspicuous contributions
to Japan’s national growth strategy in a manner thatreflects its position as Japan’s leading comprehensive
financial group. For example, MIZUHO is the SUPPORTING
COMPANY of the Japan National Soccer Team and also
extends it full support to the Tokyo 2020 Olympic andParalympic Games as a Tokyo 2020 Olympic and Paralympic Games Gold Banking Partner. Going forward, we
intend to sustain these kinds of efforts to further strengthen the Mizuho Brand.

In Conclusion
Despite sustained trends of gradual recovery in the Japanese and global economies, we are seeing an increase in
19

Value Creation Process
Mizuho’s Value Creation Process
Mizuho, the leading Japanese financial services group with a global presence and a broad customer base, is committed to:Providing customers worldwide with the highest quality financial services with honesty and integrity;
Anticipating new trends on the world stage;
Expanding our knowledge in order to help customers shape their future;
Growing together with our customers in a stable and sustainable manner; andBringing together our group-wide expertise to contribute to the prosperity of economies and societies throughout the world.
These fundamental commitments support our primary role in bringing fruitfulness for each customer andthe economies and the societies in which we operate. Mizuho creates lasting value. It is what makes us invaluable.

VisionThe most trusted financial services group witha global presence and a broad customer base, contributing
to the prosperity of the world, Asia, and Japan.
Financial Capital(shareholders’ equity, liquidity, etc.)

Human Capital and Intellectual Capital(human resources, industrial
expertise, products, etc.)

Social and Relationship Capital(stakeholders, community,society, etc.)

Risk and
Opportunities
RAF(pages 70 and 71)

Governance

Strategy andResource
Allocation

Strengthening
Management Foundations(pages 65 to 85)

GrowthStrategies(pages 37 to 47)

Business Model
InputsBusiness
Activities

Outputs

Outcomes

One Mizuho Strategy
Integrating the Group’s functions centered on“banking, trust banking and securities” to provide
a wider range of services for each customer segment

Special Features (pages 22 to 35)
Growth Strategies (pages 37 to 47)
Business Approaches (pages 49 to 63)

Performance
Financial
Highlights(inside pages 3 and 4)
Medium-term
Business Plan
(pages 40 and 41)

OutlookBusiness
Environments(pages 38 and 39)

External Environment
Business Environments (pages 38 and 39)
20

Value Creation over Time

Financial Capital• Build a group earnings structure with stability and growth• Abundant liquidity and appropriate capital levels

Human Capital and Intellectual Capital• Exercise financial intermediary function through sophisticated risk-taking• Establish competitive edge by focusing actions on growing markets and businesses
in which we have competitive advantages• Establish strong corporate governance supported by strong corporate culture

Social and Relationship Capital• Contribute to the sustainable development of society• Strengthen the Mizuho brand through actions to improve customer service• Improve global presenceThis diagram was prepared in reference to International Integrated Reporting Council’s International Integrated Reporting Framework21

1SpecialFeature“Growth-Oriented” Governance Reform Measures

We are engaged ingovernance reform designed tosupport a strong Mizuho
towards increase of
its corporate value.

One of the basic policies of Mizuho’s medium-term business plan is to–“Form strong corporate governance and culture in the spirit of One
Mizuho”–and we are seeking to realize this objective by implementing“growth-oriented” governance reform measures. A key element of thesereforms is the June 2014 transition of the Group’s holding company, MHFG,
to what is currently called a “Company with Three Committees” structure.
We asked Ms. Hiroko Ota, outside director and Chairman of theBoard of Directors at MHFG, about the achievements by the transition
to a “Company with Three Committees” structure and the issues theBoard of Directors is addressing to augment Mizuho’s corporate value.

Q: About a year has passed since you became an outside director. Has theBoard of Directors been changing during that period? Also, please tellus the objectives you are most intent on addressing as Chairman.

A : Mizuho has outstanding human resources, a solid customer base, and other resources, but
it is not making full use of the potential power of those resources… that is the impression
I had when I first became an outside director. Aiming to improve that situation, I havebeen emphasizing measures to enhance the Board during the past year.
Because the “Company with Three Committees” structure shifts a greater range ofauthority to executive officers, the Board can focus on being the core forum fordiscussions of key management issues. The fiscal 2015 business plan was drafted fromscratch by means of deliberations of the Board. Because each industry has its own
concept about what constitutes “common sense,” the addition of outside directors who
have accumulated experience in other industries and fields has given the Board new
perspectives on management issues. While each Board meeting is scheduled to last
about three hours, lively discussions at each of the meetings have exceeded that
allotted time frame.
As the Chairman, I carefully go through agenda items and related materials in
advance so that discussions can focus on more substantive issues. These preparatory
efforts are particularly important since reference materials tend to become voluminous and difficult to understand unless vigorous measures are taken to effectively
22

counter that tendency.
Governance reform has just begun. Going forward, I intend to manage the Board inorder to maintain a sense of urgency as required steps are taken to realize all
Mizuho’s latent strengths.

Q: What do you consider necessary for augmenting Mizuho’s corporate
value going forward?

A : Above all, I believe Mizuho’s “earning potential” must be elevated. If expeditious andsteady progress is made in improving performance, I anticipate that it will promote arise in employees’ pride and confidence. I have been exchanging ideas about this topic
with not only the management but also with employees at branches and headquarters,and I am confident that the Group is fully endowed with the potential strengths
needed to achieve a considerable surge in performance.
What is necessary is, first, make sure that we effectively shape medium-term strategies.
Second, I think that the series of incidents has imperceptibly fostered the spread of a kind of
introspective risk-averse posture that may discourage employees from taking many kinds ofinitiatives that they may consider to be superfluously ‘sticking their necks out,’ and I believe
this way of thinking must be thoroughly extirpated.
During fiscal 2015, Mizuho will be emphasizing the key theme of “earning potential.” I
am determined to make this year a period in which people both within and outside theGroup will generally gain a clear perception that Mizuho has been changing for the better.

Hiroko Ota
2004 Director General, Cabinet Ofﬁce2005 Professor, National Graduate Institute for Policy Studies
2006 Minister of State for Economic andFiscal Policy
2008 Professor, National Graduate Institutefor Policy Studies (current)
2014 Director of MHFG (Chairman of theBoard of Directors)(current)

Mizuho’s “Growth-Oriented” Governance Reform Measures
As a front-runner in the ﬁeld of corporate governance, Mizuho is introducing “growth-oriented” governance reforms
designed to foster “earning potential” and thereby realize an increase in corporate value

Enhancement of Group Governance System

Strengthening the supervisory function of the Board of Directors• The majority of the Board of Directors consists of non-executive directors (of the total of 13
members, six are outside directors and two are internal non-executive directors).
• In principle, the Chairman of the Board of Directors shall be an outside director.
Transition to a“Company with Three
Committees” Structure

Strengthening of the
Functions of the Holding Company

Formation of a Common Corporate
Culture throughout the Group

Make it possible for the management to make swift and flexible decisions• The Board of Directors delegates decisions on business execution to executive ofﬁcers.
Secure transparency and fairness in the process of appointment of directors anddetermination of compensation• In principle, all members of the Nominating and Compensation Committees shall be
appointed from among outside directors.
• Establish cross-entity systems for appointing directors and determining compensation.

Promotion of integrated strategies between banking, trust banking, and securities functions• Holding company acts as the “control tower” of group-wide strategies and planning.

Form a strong corporate culture in the spirit of One Mizuho• Implement measures in Japan and overseas to realize our “Vision” within Mizuho’s
Corporate Identity.

Please refer to MHFG’s websites for the Corporate Governance Guidelines (established in May 2014), the guidelines that set out the fundamental
perspectives regarding corporate governance in Mizuho and the framework and governing policies of the corporate governance system in MHFG.

23

2

SpecialFeatureIntegrated Strategy between “Banking, Trust Banking andWorking in close cooperation, MHBK,MHTB and MHSC are proactively
moving ahead with measures tocomprehensively integrate the group’s“banking, trust banking and securities”
functions.

As the only financial group in Japan with banks, trust banks andsecurities companies under one umbrella, we offer group-wideservices by integrating “banking, trust banking and securities”
functions to respond to the ever more diverse and sophisticatedneeds of our customers.

Mizuho’s Group Operational Structure
MHFG(holding company)

MHBK

Corporate
Planning andManagement

Group Chief Ofﬁcer

MHTB

MHSC

The Group Chief Ofﬁcer is at the
top of the chain of command andi m p l e m e nts i nte g r ate d g ro u p
management.

Individual Banking Unit
Retail Banking Unit
Each unit in MHFG

Corporate Banking Unit
(Large Corporations)

Corporate Banking Unit

Each unit established in MHFG determines and promotes group-wide strategies across banking, trust banking,securities and other business areas.

Financial Institutions &Private Sector Business Unit

International Banking Unit
Investment Banking Unit
Transaction Banking Unit
Asset Management Unit

Customers of each group comp a ny a re v i ewe d a s M i zu h o’s
common customers and we offer
them group-wide services.

Markets Unit
* In principle, group companies other than the above belong to each segment depending on the characteristics of their businesses.

For information on each unit,

24

Business Approaches (pages 50 to 61)

Securities” Functions

Based on our integrated strategy between “banking, trust banking andsecurities” functions, MHBK will focus on strengthening its frontline
business capabilities, thereby providing our customers with thefinancial services best suited to helping them achieve their goals.
MHBK is striving to improve customer convenience and satisfaction by providing aneffective and multifaceted range of comprehensive financial services throughcollaboration with MHTB and MHSC to draw on the Group’s integrated capabilities.
Since fiscal 2014, we have been working to leverage the Group’s comprehensive
capabilities to further meet customers’ needs by implementing the Area One Mizuho
Promotion Project. With respect to each geographical area, this project has brought
RMs of MHBK, MHTB and MHSC together to engage in discussions about the special characteristics of the region and customers in that region. Based on a good graspof those characteristics and drawing on their various kinds of expertise, the participants consider the best means of becoming “the most trusted financial services
group” from diverse perspectives. As a result, we have in one year considerably
expanded our number of customers seamlessly using our group company’s products
and services centered on asset management by tens of thousands.
We have made steady progress in generating positive results through collaboration
with MHTB related to individual customers’ testamentary trusts and corporate

Nobuhide Hayashi
President & CEO
Mizuho Bank, Ltd.

Case

1

Collaboration between MHBK, MHTB and MHSC to Support Customers’ Growth Strategies

A growing company developing “earth music & ecology” andnumerous other fashion brands, CROSS COMPANY is
proactively expanding its network of retail stores in Japanand overseas. While emphasizing a growth strategy centeredon the “acceleration of overseas expansion and employment
of M&A strategies,” it was also considering such options as
those involving fund procurement from capital markets.
Aiming to make a contribution to realizing the company’s
growth strategy, MHBK continually worked to deﬁne thec o m pa ny’s n e e d s a nd of fe r a s so c i ate d pro p os a ls. It
highly evaluated MHBK’s proposal on overseas businessd e v e l o p ment—created based on collaboration among
MHBK’s wide overseas network and specialized head ofﬁce
units—and, based on that proposal, MHBK has provided
effective support for the company’s initiatives such as theestablishment of a subsidiary in China. In response to its
requests for advice on such subjects as M&A strategies andfund procurement from capital markets, MHBK collaborated
closely with MHTB and MHSC to build a support system tocater to the company’s needs effectively and promptly aswell as in an integrated manner between banking, trust
banking and securities functions. These initiatives have beenhighly regarded, and Mizuho is continuing to make concerted
efforts to comprehensively support the company and help it
realize its various objectives.
As part of this comprehensive support, we are regularly
holding “One Mizuho Meetings” that bring the company’s
representatives together with branch managers of MHBK,MHTB, and MHSC branches to discuss and share ideas
about its needs and visions. Going forward, MHBK, MHTB
and MHSC will continue collaborating closely and sharing
their expertise with the objective of offering the company
optimal proposals and solutions.

earth music & ecology

25

Special
Feature2 Integrated Strategy between “Banking, Trust Banking andowners’ business successions and through collaboration with MHSC in such fields as
POs, IPOs, and M&A transactions. In this way, we have a clear perception that Area
One Mizuho Promotion Project initiatives have been effectively strengthening groupcapabilities and promoting greater customer satisfaction.
Going forward, we will continue to work as a financial institution that has theGroup’s largest number of branch offices and customers to play a central role in promoting the integrated strategy between “banking, trust banking and securities functions”
under the “One Mizuho” slogan. At the same time, each of MHBK’s employees will
maintain his or her efforts to strengthen our capabilities for constantly coming up withand implementing new approaches to overcoming customers’ challenges and resolving
their issues (what MHBK refers to as “frontline capabilities”). In these ways, we aredoing our utmost to support our customers and help them realize their dreams.

By promoting the integrated strategy between “banking, trust banking
and securities” functions, MHTB endeavors to offer products andservices that make use of the special features of trusts to meet thevarious needs of customers of the entire Group.

Takeo Nakano
President & CEO
Mizuho Trust & Banking Co., Ltd.

By promoting the integrated strategy between “banking, trust banking and securities”
functions, MHTB endeavors to offer products and services that make use of the special features of trusts to meet the various needs of customers of the entire Group.
For individual customers, we offer products such as testamentary trusts andqualif ied educational f und giving t r usts at branches of MHBK and MHSC,
assigning inheritance consultants at all MHBK branches, and are making various
other efforts to leverage group capabilities in an integrated manner to meet a wide
range of customers’ inheritance and asset succession needs. Regarding corporate
owners’ business succession needs, we work in close collaboration with MHBK to

Case

2

Drawing on Strengths of MHBK, MHTB, and MHSC to Respond to Needs of Both
Corporations and Their Owners

PeptiDream is a venture company that has sustained steady
growth in drug discovery business involving collaboration
with universities. Highly evaluating PeptiDream’s founding
philosophy—“We want patients who are suf fering from
diseases—even if it is just one patient—to say ‘Thank You’ forour work”—and advanced technology, MHBK has built astrong relationship of trust with the company and been its
main bank ever since the company’s establishment in 2006.
When the company listed its shares, MHSC leveraged its
abundant advisory experience to provide IPO consulting
services, and Mizuho’s group capabilities earned a high evaluation in connection with those services.
Moreover, while PeptiDream’s smooth post-listing business expansion has been accompanied by various challenges
to the company’s management and shareholders, Mizuho

26

has continuously provided support regarding needs of both
corporations and their owners through such measures as theoffering of order-made consulting services by MHTB.
To promote the company’s sustained development going
forward, Mizuho is promoting the integrated management ofbanking, trust banking and securities functions to provide its
utmost support.

Securities” Functions

provide consulting functions that make full use of our high level of trust-related
specialized expertise.
For corporate customers, we provide trust-related solutions in the areas of realestate, securitization, stock transfer agency business and pensions. With respect tocustomers aiming to make public offerings, we collaborate with MHBK and MHSC toprovide a wide range of IPO-related support. In the asset management field, we arestrengthening our asset management capabilities by moving ahead with the integration of group asset management functions.
Going forward, MHTB will continue striving under the “One Mizuho” slogan toaccelerate our development of Mizuho’s distinctive initiatives by fully leveraging theGroup’s capabilities. Working in close collaboration with MHBK and MHSC, we areendeavoring to position ourselves to benefit our customers by providing even moresophisticated and specialized trust products and services.

Trust Lounges
MHTB’s ofﬁces which specialize in consultations, located within the same buildings
as MHBK branches.

Case

3

Mizuho’s Group-wide Support for IPOs

SFP Dining is a company operating more than 150 restaurants mainly under the brands of “Toriyoshi” and “Isomaru
Suisan.” In accordance with its chairman’s strong commitment to the concepts of “working for all employees’ happiness” and “the company’s sustained growth itself will lead tothe happiness of all types of stakeholders,” it was making
company-wide efforts to undertake an IPO.
Mizuho built a group-wide support system to help realize
the company’s IPO. As its main bank, MHBK supported thediversiﬁcation of the company’s loan-based fund procurement methods, and MHSC provided advisory services. In

Toriyoshi

addition, at the time of the IPO, MHSC acted as lead manager while MHTB handled stock transfer agency processes.
SFP Dining’s shares were listed on the Second Section of
the Tokyo Stock Exchange in December 2014, and the company has subsequently continued striving to achieve further
growth and “to be a food service provider enriching people’sl i ve s i n Ja p a n.” We a s a g ro u p i nte n d to s u s t a i n o u rgroup-wide ef for ts to suppor t grow th while continuing
to provide the company with proposals that contribute to
the resolution of their management challenges.

Isomaru Suisan

27

Special
Feature2 Integrated Strategy between “Banking, Trust Banking andUnder the slogan of “One Mizuho,” MHSC is implementing the
integrated management of “banking, trust banking and securities”
functions, to provide high-value-added securities services to
Mizuho’s customers.

Hiroshi Motoyama
President & CEO
Mizuho Securities Co., Ltd.

Under the slogan of “One Mizuho,” MHSC is implementing the integrated management of “banking, trust banking and securities” functions, to provide high-value-added
securities services to Mizuho’s customers.
As the trend of “shift from savings to investments” accelerates, we are boldly transforming our marketing approach and are focusing on a more customer-centric
approach with the objective of contributing to individual customers’ asset building in
the medium- to long-term. In addition to offering services including financial products that meet the needs of our customers and high-quality research information, we
are improving services as a whole group. Our initiatives range from having MHBK
introduce its customers who need securities services to us, all the branches of MHBK
nationwide offering financial instruments intermediary services and expanding
our testamentary-related business by making all our branches agents of MHTB.

Case

4

MHBK and MHSC Collaboratively Arranged Financing for the Largest
Global M&A Transaction of 2014

Actavis is the third-largest U.S.-based company in the
global generic pharmaceuticals industry, and, while theglobal healthcare industry is undergoing reorganization, it has
been working to strengthen its operations in the highly proﬁtable ﬁeld of specialty pharmaceuticals on the back of stable
cash ﬂow from its generic pharmaceutical business. In connection with this strategy, Actavis recently acquired Allergan,a major U.S.-based pharmaceutical company, for a total of
US$66.4 billion.
Together with J.P. Morgan and Wells Fargo, Mizuho
became the joint lead arranger of the acquisition’s ﬁnancings
as the only Japan-based bank, and MHBK provided ﬁnancing for the deal. Subsequently, MHSC acted as underwriter
for bonds and equity issued by Actavis. The transaction was
the world’s largest corporate acquisition ﬁnancing deal of2014.

Based on the Super 30 Strategy, which is focused on
non-Japanese blue chip customers, MHBK and MHSC iscollaborating to make industry-sector analyses. Mizuho isusing those analyses to present business strategy proposals
designed to elevate corporate values while concurrently
moving ahead with efforts to develop close relationships with
its customers’ top executives and with measures to build risk
management systems capable of large-scale ﬁnancing transactions. These strategies have begun bearing fruit in suchforms as Mizuho’s participation in such major transactions as
the Allergan acquisition.
Going for ward, Mizuho will continue endeavoring to
respond to global companies’ diverse growth opportunities
associated with corporate acquisitions and industry reorganization by integrating the efforts of MHBK and MHSC to provide optimal ﬁnancing packages.

MHBK

28

MHSC

Finance: US$462 billion

Bond Issuance: US$21 billion

Equity Issuance: US$9.2 billion

Joint Lead Arranger
Joint Bookrunner

Joint Bookrunner (All Notes)

Joint Bookrunner

J.P. Morgan, Mizuho, Wells Fargo

J.P. Morgan, Mizuho, Wells Fargo

J.P. Morgan, Mizuho,
Wells Fargo, and others

Securities” Functions

In corporate business, we are meeting securities needs of Mizuho’s customers byleveraging MHSC’s strengths regarding the offerings of such investment banking
solutions as those involving equity and bond underwriting, M&A advisory services,and structured finance as well as by providing asset management products, investment information, and other solutions.
We have set goals of “contributing to the economic growth of Japan, Asia, and theworld” and “becoming a company that shares in the joy of our customers’ success.” To
achieve these two objectives, we will substantially step up our drive to offer evenhigher-value-added products and services in a timely manner, as we further accelerate
our collaboration with Mizuho’s banking and trust banking arms.

Planet Booths
MHSC’s consulting booths located in thelobbies of MHBK’s branches.

Major Business Results Achieved through Collaboration between MHBK, MHTB and MHSC
1. [MHBK+MHTB+MHSC collaboration]
Balance of Investment Products*
MHBK

MHTB

(trillions of ¥)(No. of deals)
2. [MHBK+MHSC collaboration]
M&A Advisory for Publicly Announced Deals

MHSC

25

200
20.8

20

18.5

17.1

15

6.0
5.9

5.9

1.8

1.7

150

1.9
100

10
10.8

9.6

12.9

5
0

As of March
31, 2013

As of March
31, 2014

As of March
31, 2015* Total of individual annuities, investment trusts, JGBs sold to individuals,
foreign currency deposits, etc.

(No. of deals)
3. [MHBK+MHSC collaboration]
Number of Contracts to Undertake the
Execution of Wills Service
1,600

50
0
FY2012FY2013

FY2014* Number of transactions basis, any Japanese involvement publicly
announced, excluding real estate transactions(Source) Prepared by MHSC based on data from Thomson Reuters(billions of ¥)4. [MHBK+MHSC collaboration]
Gross Proﬁts from Overseas DCM* Business

20
15

1,400

10
5

0

0
FY2012FY2013

FY2014FY2012FY2013

FY2014* DCM: Debt Capital Markets (bond underwriting)29

3SpecialFeatureFostering Industries with the Aim of Generating BusinessAs a financial institution based in Japan, Mizuho
aims to contribute to the development of Japan’s
economy and society and strengthen the competitiveness of Japanese industries from a financial perspective. Active initiatives include “participation in establishing systems and frameworks through making
policy recommendation and other activities,” “providing support for structuring business models, business matching, industry and business reorganizationand other assistance,” and “supplying risk money anddemonstrating risk-taking capabilities.” Having positioned such areas as “environment and energy,” “agriculture, forestry and fisheries,” and “medical careand health” as growth industries, we are moving
ahead with group-wide efforts to foster industries
from the medium- to long-term perspective while
also generating business opportunities.

Mizuho adopts a
medium- to long-term perspective
in its initiatives based ongroup-wide collaboration to help
foster the industries of the future.

Category 1 Environment and Energy
In view of strong needs for promoting the use of renewable energy, energy conservation, and resolving environmental problems in both developed and emerging countries, Mizuho is leveraging its abundant expertise and know-how in those areas tooffer support regarding global policies as well as business strategies.
(billions of ¥)Forecast of Global Power Generation Investment(total ﬁgures for the 2014-2035 period)
3,000

2,634

2,500
2,000

Gas
1,054

1,500
1,000
5,00

Oil
52

1,989
1,507

1,061
Coal
1,528

Marine560

1,276

Terrestrial
1,429

639

447

0
ThermalNuclearBiomass

Hydraulic

Wind

Solar

Others(geothermal, etc.)(Source) Prepared by MHFG based on the International Energy Agency’s World Energy Outlook 2014 (IEA WEO2014).

Case

1

Arrangement of Ultralong-term Financing forLarge-Scale Geothermal Power Generation Project

Owing to challenges regarding the cost, scale, siting, and other aspects of large-scale
geothermal power generation projects, there has been no progress regarding such projects in Japan since 1996. Japan is considered to be the world’s third richest country in
geothermal resource volume, however, and in light of the 2012 introduction of a
fixed-price power purchasing system for renewable energy and recent regulatory
relaxation measures, there are rising expectations in Japan regarding geothermal
power projects, which are superior to other kinds of renewable energy projects interms of the cost and stability of the power they generate.
30

Opportunities

In January 2015, MHBK utilized a Japan Oil, Gas and Metals National Corporation(JOGMEC) liabilit y g uarantee scheme to ar range a total of ¥26.2 billion ofultralong-term financing for a large-scale geothermal power generation project (Wasabisawa Geothermal Power Plant) in Yuzawa City, Akita Prefecture, that is being jointly
invested in by Electric Power Development, Mitsubishi Materials, and Mitsubishi Gas
Chemical. The plant is expected to have a power generation capacity of 42,000 kW,
and the project is the first such large-scale project requiring an environmental assessment for which JOGMEC has provided a liability guarantee.
Leveraging its experience and know-how regarding renewable energy project
financing, MHBK provided its customers with a comprehensive range of services fromthe initial stage of considering the application of the JOGMEC liability guarantee
system–including finance scheme design, risk analysis, the invitation of other financial
institutions to participate in the financing scheme, contract negotiations, and post-financing
paperwork–and has thereby made a large contribution to the project’s realization.
Case2

Hot water reinjection bases

Reinjected hot water transport pipe

Power generation plant

Steam production plant

Wasabisawa Geothermal Power Plant Facilities

Participation in Smart Community Demonstration
Project in Slovenia

Project implementation areas

In accordance with EU directives that include reductions in the emission of greenhousegases, Slovenia is working to expand its use of renewable energy sources and improve its
energy efficiency, and those efforts require additional initiatives regarding the country’s
aging power distribution infrastructure and increasing demand for electric power.
In this regard, MHBK, Mizuho Information & Research Institute (MHIR), Hitachi
and THE Power Grid Solution were selected to carry out a feasibility study for a“smart community demonstration project in Slovenia” of the New Energy and Industrial

Integrated DMS and DR Solution

Micro-grid
Service
centerAEMS

Hydroelectric
power generation

Integrated DMS
Visualize distribution network
Optimize voltage and reactive power

Cloud
Service

Solar power
generation

Interact with EMS andcreate DR plan
Peak shaving

Hydroelectric
power generation
Wind-power
generation Solar power
generation Thermal power
generation
Factories

FEMS
Buildings

BEMS* 1. BEMS: Building-Energy Management System* 2. FEMS: Factory-Energy Management System* 3. AEMS: Area-Energy Management System

The illustration shows a DR solution thatwill minimize peak demand and realize local
production and consumption of energy(via micro-grids) by means of interacting acloud-based integrated distribution management system (DMS: control system of
distribution networks) that can be used bymultiple electricity distribution companies
with energy management systems (EMSs:
systems that use IT for the managementof electric power, gas and other forms ofenergy) installed by consumers.

31Special
Feature3 Fostering Industries with the Aim of Generating BusinessTechnology Development Organization (NEDO), which is designed to build anddemonstrate systems for the low-cost strengthening of Slovenia’s power distribution
network and stabilization of the country’s power supply-demand situation.
The demonstration project aims to utilize advanced Japanese technologies in thefields of power distribution and information and communication technology (ICT) toensure the stability of the distribution network, achieve efficient operations, establish
demand response (DR) solutions to minimize peak demand, and realize local energy
production and consumption of energy.
Leveraging the know-how it has accumulated in connection with eco-city projects,
Mizuho conducted surveys and analyses of the electric power industry and related regulatory systems as well surveys of equipment suppliers, approached government officials,
and implemented other measures required to build and evaluate the feasibility of a business model designed to benefit all Japanese and Slovenian parties involved in the project.

Category 2 Medical Care and Health
As Japan is an advanced country regarding the challenges associated with the aging
population and declining birthrate, measures to overcome the challenges through theprogress of the medical care and health industry are a crucial means of enabling
Japan’s sustained growth. Based on its abundant industry expertise, Mizuho is promoting the establishment of medical care and health-related government policies andis building support systems for a wide range of customers.

Japanese Average Life Expectancy and Healthy Life
Expectancy by Gender (2013)
Average life expectancy

80.21

Male
71.19

Healthy life expectancy

Difference between
average life expectancy andhealthy life expectancy

9.02 years

Average life expectancy

86.61

Female12.40 years

74.21

Healthy life expectancy
50

55

60

65

70

75

80

85

90
(Age)

(Source) Prepared by MHFG based on materials issued by the Ministry of Health, Labour and Welfare’s Health Science Council.

Case

1

Investment in Regional Healthcare Industry Support Fund

Owing to the rapid progress of aging population and declining birthrate, Japan has astrong need to expeditiously devise means of restraining growth in its social security
expenses, and fostering the growth of the industries related to the extending of healthy
life expectancy has, therefore, become one of the country’s top-priority tasks. Aiming
to help overcome related challenges, the Regional Economy Vitalization Corporation ofJapan (REVIC) and AGS Consulting cooperatively established the Regional Healthcare
Industry Support Fund as a joint public-/private-sector fund in September 2014.
Approximately 20 regional financial institutions and other entities from throughout
Japan have invested in the fund. In addition to its having undertaken the largest single
investment in the fund, MHBK intends to take various initiatives to help foster andpromote the healthcare industry’s development in various regions going forward.
32

Opportunities

Overview of the Regional Healthcare Industry Support Fund

REVIC Capital
AGS Consulting

Case

2

New healthcare businesses
Financial investment
Allocate management personnel

REVIC

Regional Healthcare Industry Support Fund

Regional Financial
Institutions

Financial investment

MHBK• Creation of newhealthcare industry
model cases(medical institutions, nursing careproviders and peripheral business entities
as well as those parties’ joint ventures)

Collaboration• Responding to theaging population anddeclining birthrate

Collaboration

By providing growth-stage healthcare
providers and other entities withnecessary risk money along with management personnel, the fund is aiming tohelp invigorate regional economies bydeveloping and promoting the expanded
use of new business models. As of April
2015, the f und had exe cute d seve ninvestments.

• Invigorating regional
economies
Cross-industry
entities, etc.

Regional core
hospitals, etc.

• Creating new jobs

Participation in the Wellness Point Project

Aiming to help Japan realize a society with long healthy life expectancies, MHBK and
MHIR are participating in the Wellness Point Project, a joint public-/private-sector
demonstration project being implemented by participants, including relevant government ministries and agencies such as the Ministry of Internal Affairs and Communications and the Ministry of Education, Culture, Sports, Science and Technology, Universityof Tsukuba, and Tsukuba Wellness Research and other private-sector companies.
By employing ICT and an incentive system, the project is seeking to promote behavior
changes in the approximately 70% of the population that is believed to be relatively
uninterested in health issues. The project aims to provide individuals opportunities toproactively extend their healthy life expectancy by visualizing their health conditions
along with rewarding “wellness points” that are exchangeable for gift certificates.
In its first fiscal year, the pilot project designed an efficacious incentive system andbuilt a measurement and verification system for evaluating the effects on regional
economic vitalization and reduction of medical care expense of pilot initiatives taken
in cooperation with six partner cities*. Plans call for continuing to analyze this pilot
data going forward.
Mizuho is playing an important role in the project. MHIR is the project’s representative company that oversees the whole project, while MHBK is considering related
business models.

Earn points byparticipating
Muscle training andwalking with fellow participants in exercise classes

Earn points by walking

Earn points byobtaining results

Foregoing the use of cars
for walkable destinations

Put on more muscles,
weight reduction

Accumulate points

Exchange points

Use at supermarkets and shops* These include Urayasu City, Chiba Prefecture; Ohtawara City, Tochigi Prefecture;
Okayama City, Okayama Prefecture;
Takaishi City, Osaka; Date City, Fukushima Prefecture; and Mitsuke City, Niigata
Prefecture.
The “Wellness Point” System
In light of the recognized health beneﬁts
of walking, individuals are rewarded wellness points when they join and continue
participation in exercise classes sponsored by local governments and exercise
programs by private sector. They are also
rewarded wellness points in accordancewith improvements in health conditions aseffects of individuals’ regular walking andother daily health promotion activities.
The six participating cities offer a totalof more than 100 programs to facilitate
participation by residents with low levelsof health awareness. A system has been
built to enable the conversion of wellness
points into such forms as membershipcard system points, regional gift certiﬁcates, and social contributions (donations).

33

Special
Feature3 Fostering Industries with the Aim of Generating Business
Category 3 Agriculture, Forestry, and Fisheries
Believing that transforming Japan’s agriculture, forestry, and fisheries industries into
growth industries is a key means of overcoming issues associated with expanding
domestic demand, creating domestic employment, and invigorating regional economies, Mizuho is leveraging its industry expertise and other capabilities as well as its
nationwide base of customers to support the transformation of agriculture, forestry,
and fisheries industries into growth industries.

Agricultural and Fishery Products and Food Product Export Trends and theGovernment’s Growth Target(billions of ¥)1,200
1,000.0

1,000
800
600

550.5

445.4

492.0

451.1

449.7

2009

2010

2011

2012

611.7

400
200
0
2013

2014

2020

(Source) Prepared by MHFG based on the Ministry of Finance’s Trade Statistics and the Ministry of Agriculture,
Forestry and Fisheries’ Exports of Agriculture, Forestry and Marine Products, Etc.

Case

1

* Sixth Industry initiatives: This is a drive

Scheme of the Agriculture, Forestry, and Fisheries Sixth Industry Fund
Direct investment

Investments
Loans

Investment
Sub-fundInvestments
Private-sector (ﬁnancial institutions, local governments)

Management
supportBusiness entities that willturn into a “Sixth Industry”

Subordinated loan (quasi-capital)

A-FIVE(Industrial investment)(Partly private sector)

34

There have been increasing efforts to rebuild and revitalize Japan’s agriculture, forestry, and fisheries industries in recent years by means of sixth industry transformation*
initiatives.
The Agriculture, Forestr y and Fisheries Fund Cor poration for Innovation,
Value-chain and Expansion Japan (A-FIVE), financial institutions, and local government entities provide funds to establish the Agriculture, Forestry, and Fisheries Sixth
Industry Fund (hereinafter, “the Fund”). The Fund is established for each region andeach theme.
Believing that the Fund is an effective means of transforming agriculture, forestry,
and fisheries industries into growth industries, Mizuho has established the “Sixth
Industry Initiative Support Desk” within MHBK across multiple related divisions to

National levelto promote stable growth and development of the agriculture, forestry, and ﬁsheries industries and promote revival of
the regions’ economies by increasing
added value in the agriculture, forestry,
and ﬁsheries industries through the integration of their production, processing,and logistical operations under a modelin which their practitioners (primar ysector entities) not only supply the raw
materials, but also take a core, comprehensive role in the secondar y sector(manufacturing and processing), and theter tiar y sector (wholesale, retail, andtourism) businesses.

Proactive Promotion of Sixth Industry Transformation

Opportunities

cooperate with regional financial institutions and A-FIVE by proactively participatingin the establishment of sub-funds.
In management of these sub-funds, MHBK is drawing on its broad customer base andknowledge of industries, collaborating with joint sub-fund investors, including regional
financial institutions, local governments and their entities, and A-FIVE, to play the rolesof supporting business matching at the global level for technology and sales channels. In
addition, Mizuho Capital, which has abundant experience providing venture companies
with capital and management support, is taking part in the management of some of the
sub-funds. As of March 31, 2015, Mizuho had invested a total of ¥1.7 billion in 13
sub-funds (total investments made by these 13 funds amounts to ¥16.8 billion) and had
made investments in nine business entities that will turn into a “Sixth Industry.”
Case

2

Proactively contributing
to creating a prosperous
future by fostering
growth industries.

Establishment of the Gulf Japan Food FundJapan is seeking to create specific initiatives toward expanding the export offood-related products, as the government has stated a target of doubling foodstuff
and agriculture, forestry, and fisheries product exports by 2020 under its “Japan isBack strategy.” Improving food security is also a significant policy challenge in each
Middle East nation. Accordingly, we believe that there is strong demand for both safeand high-quality food products as well as technology to support improving efficiency
and adding value to food production and processing within the region.
With the objective of responding to these needs of Middle East nations and providing support on the financing side for the expansion of exports such as foodstuffs, agricultural, forestry, and fisheries products, and related products and technologies fromJapan into the Middle East region, MHBK is preparing to establish the Gulf Japan
Food Fund, a private equity fund that is scheduled to be established during autumn
2015.

Gulf Japan Food Fund

Background

Structure

Japan

Gulf
Investment
Corporation

Partners(investors, etc.)

Double agricultural product and foodexports to ¥1 trillion by 2020
Transform agriculture into a
growth industry
Gulf Japan Food Fund

GCC* countries
Investments in food-related companies
Aims to improve food security
Demand for safe and high-quality foodNeeds for food production andprocessing technologies

Production

Processing

Distribution

Facilities* Gulf Cooperation Council: Saudi Arabia, the United Arab Emirates, Oman, Kuwait, Qatar, and Bahrain

Establishment of this fund is an initiative
based on the memorandum of unders t a n d i n g fo r b u s i n e s s c o o p e r a ti o nsigned in August 2013 between MHBK
and the Kuwait-based Gulf Investment
Corporation (GIC), a government-owned
investment corporation formed throughequal investment by the six member
states of the Cooperation Council for the
Arab States of the Gulf. In addition toproviding ﬁnancial support through thefund, MHBK and the GIC will take mutualadvantage of the broad networks that
our two companies enjoy to ﬁnd business par tners in both Japan and the
Middle East and provide various support
to the investment targets of the fund.

35

36

Growth Strategies

37

Growth Strategies

Business Environments
Economic and Financial Environments inJapan and Overseas
Reviewing the economic environment over the fiscal year
ended March 31, 2015, although the global economy as awhole continued to recover gradually, weakness in the recovery is seen in some regions. As for the future direction of theeconomy, although continued recovery is expected particularly in the major industrialized countries, the effect of decline inoil prices and increase of geopolitical risk need continued andcareful observation.
In the United States, the economy continues to recover as
employment conditions improved and consumer spending
picked up. As for the future direction of the economy,
although the possible effects of movements toward normalization of monetary policy should be noted, steady recovery in
the economy is expected to continue.
On the other hand, in Europe, the economies of the Euro
area continued to recover gradually, in addition to steadyrecovery in the United Kingdom. It is expected that the economies of the region will continue to be on a gradual recovery
trend on the back of the U.S. economy’s steady recovery andincrease in exports owing to the depreciated euro; however,such factors as the consequence of debt problems (including
developments in Greece) and high unemployment rates, theeffect of the slowdown of the Russian economy, and trends inmonetary policy still require attention.
In Asia, China’s economy continued to grow in a stablemanner, although the growth speed was slightly reduced.
This trend is expected to continue; however, a possibility of aslowdown in the growth rate began to be recognized mainly
due to the issue of excess equipment in the manufacturingsector and weakness in the real estate market. Recognizing
the advent of the “new normal,” the Chinese government
itself has announced that it believes it to be desirable toguide a transition from high speed growth to medium- tohigh-speed growth. Continuing from last year, the government is working to employ fiscal and financial policies tosupport the economy while also working to deepen reforms

Japan Private Consumption Integrated Estimates (Real)(2005=100)
116
114
112
110
108
106
104
102
1 3 5 7 9 11 1
2012(Consumption tax rate hike)Environment for Financial Institutions3

5 7 9 11 12013

3

5 7 9 11 1
2014
2015

(Source) Prepared by Mizuho Research Institute based on the Cabinet Office, Government of Japan’s Private Consumption Integrated Estimates

38

that promote sustainable development.
As for the economies of the region as a whole, the situation inwhich growth momentum was lacking continued partially due tothe weakening of exports to Europe. As for the future directionof the economy, while domestic demand is expected to beboosted by the decline in oil prices, since there are some concerns including depreciation of currencies that may be causedby the expected increase in interest rates in the United States,
the rate of economic expansion is expected to remain gradual.
Going forward, it will be important to keep an eye on theimpact of lower oil prices on oil exporting countries’ economies,
the possibility of economic deceleration in a portion of emerging countries, and the rise of geopolitical risks centered on the
Middle East and Russia. In addition to these increasing uncertainty factors, the global economy’s persistent excess liquidity
will sustain an environment in which numerous markets arecharacterized by occasional bouts of volatility and sharp pricesurges, and that situation calls for close attention.
In Japan, the gradual economic recovery trend continued,
and improvement was seen in employment conditions and corporate earnings. On the other hand, it remains undeniable that
there are weaknesses remaining in some parts of the Japanese
economy. In particular, the burden on households stemmingfrom the consumption tax rate hike and yen depreciation has
grown heavy, causing a somewhat of a delay in the recovery of
consumption, and companies had been maintaining prudent
stance regarding the economic outlook. Currently, however, theprudent stances of both households and companies are gradually becoming more relaxed. Going forward, the Japanese
economy can be expected to continue picking up, supported
by such factors as consumer spending growth backed by arecovery in employee compensation and increased exports
due to the continued trend of yen depreciation against othermajor currencies encouraged by the declining oil prices.
Given the economic situations reviewed above, there seems
to have been a transition from the “government policy-led
economic recovery” phase to a “creating firm foundation foreconomic recovery led by vitality of the private sector” phase.
In fields including agriculture, medical care, and tourism, newbusinesses such as the Japanese government’s “Cool Japan”
strategy and infrastructure industry are taking shape both inJapan and overseas. Such additional factors as the Trans-PacificPartnership (TPP) negotiations, the drafting of new energy
policies, the Tokyo Global Financial Center concept, and theTokyo 2020 Olympic and Paralympic Games are spurring
moves that appear likely to make Japan’s medium- tolong-term growth outlook firm within the global society.

Regarding financial institutions’ business environment, we
believe that due attention should be given to the following
four points.

First, the economic environment for banks’ traditional businesses is harsh. Against the backdrop of persistent ultralowinterest rates, rates of return on loans and bills discounted arecontinuing to decrease, and the economic environment forloan business and other traditional businesses is severe overall. In the housing loan market, for example, the intensity ofcompetition is increasing.
Second, social demands for financial institutions are changing. Rather than on traditional financing functions, there has
been a further rise in emphasis on consulting functions thatenable a grasp of issues and needs that customers themselves
are not aware of and enable the offerings of specific solutions
for those issues and needs. In particular, there has been a risein the diversity and importance of institutions’ role in the areasof fostering the development of SMEs and middle-market corporations that support regional economies to promote regional
revitalization as well as fostering the development of companies
and industries that are globally competitive.
Third, financial institutions are facing competition fromother industries as well as new business opportunities. In
recent years, a series of companies from other industries havebeen establishing presences in fields centered on such retail

The Economic Impact of the Tokyo 2020
Olympic and Paralympic Gamesbanking services as settlement services, and this trend is creating a competitive environment quite different from the previous environment. On the other hand, the use of informationand communication technology (ICT), artificial intelligence (AI),and other leading-edge technologies is making it possible tooffer a growing number of innovative services, and the scopeof associated new business opportunities is becoming progressively broader.
Fourth, while there is an intensifying debate proceedingregarding the revision of financial regulations, the direction ofregulatory trends remains unclear. The outlines of Basel III
regulations and the response to the “too big to fail” issue areapproaching their final forms, but there remain movements
toward the introduction of noteworthy new regulations, andthe situation is one that will require prudent responses tosuch developments.

(trillions of yen)
Value-addedinduction amountTypes of effects
Economic effect estimated based on a macro-economic approach

36.0

Economic effect estimated by building up individual effects

28.9

Direct impact (facility improvement, games operating expenses)

1.3

Incidental impact

27.7

Urban infrastructure improvements, acceleration of
investment in Tokyo Olympics-related industries, accelerationof improvements in earthquake resistance

15.2

Acceleration in measures addressing diversity

1.1

Increase in sports-related spending, facility improvements

0.5

Increase in tourism demand

7.8

Other (accelerated purchases of 4K/8K televisions, etc.)

3.0

Prepared by Mizuho Research Institute

Introduction of Basel III by Stages
Summary/Objectives

Introduction schedule

Capital Adequacy Requirement

Raising minimum capital adequacy ratios, strengthening capitalquality and risk capture, etc.

• Application by stages from 2013
• Complete implementation in 2019

Leverage Ratio

Non-risk-based leverage ratio regulation(complementing the capital adequacy requirements)• Ratio disclosure starting from 2015
• Aiming to introduce mandatory leverage
ratio requirements from 2018

Liquidity Coverage Ratio (LCR)

Sufficient high-quality liquid assets required to respond to fundoutflows under stressed conditions• Application by stages from 2015
• Complete implementation in 2019

Net Stable Funding Ratio (NSFR)

Medium- to long-term stable funding required with respect to assets
for which short-term disposal is difficult• Application from 2018

Prepared by Mizuho Financial Group39

Growth Strategies

Medium-term Business Plan and Its Progress
Five Basic Policies

Ten Basic Strategies

1.
Further develop
integrated strategies
across the Group foreach customer
segment to respondto the diverse needsof our customers

1

Strengt
Strengthen
integrated ﬁnancial services by unifying banking,banking, and securities functions to respond to ﬁnely delineatedtrust ba
corporate and personal banking segments
corpor2

Perform consulting functions taking advantage of our industry andbusiness knowledge and forward-looking perspective

3

Support formation of personal ﬁnancial assets in Japan and invigorate
their investment

4

Strengthen proactive risk-taking functions for growth industries andcorporations

5

Strengthen and expand Asia-related business in Japan and on a
global basis

6

Cultivate multi-level transactions by capturing the accelerating global
capital and trade ﬂows

7

Strengthen stable ﬁnancial foundations based on abundant liquidity andappropriate capital levels

8

Establish the optimal management foundations (human resources andbusiness infrastructure) to support business strategy

9Further strengthen proactive governance and risk management

10

Embed the new Mizuho corporate identity toward forming a common
culture throughout the Group and take actions toward being the best
ﬁnancial services provider

2.
Business Strategies

Contribute tosustainable
development of theworld and Japan byproactively
responding tochange3.

Mizuho Means Asia:
accelerate
globalization

5.

40

Build strong financial
and managementfoundations to
support the essenceof Mizuho

Form strong
corporate
governance andculture in the spirit of
One Mizuho

Business Management,
Management Foundations, etc.

4.

Overview of Achievements
By promoting the integration of banking, trust banking, and securities functions and thebroad-ranging cross-divisional sharing of the Group’s ﬁnancial know-how and industry expertise,
we are quickly responding to all types of customer needs by combining the Group’s comprehensive capabilities to provide diverse ﬁnancial services. Concurrently, we are taking such measures
as those to create joint branches of MHBK, MHTB and MHSC.

We are performing sophisticated consulting functions on a global basis taking advantage of ourindustry and business knowledge and forward-looking perspective through activities such asarrangement of project ﬁnance for a post-combustion carbon capture-enhanced oil recovery project in the United States and participation in a smart community demonstration project in Slovenia.

To respond to customers’ wide range of asset management needs, we are striving to develop
and strengthen our lineup of such products as investment trusts to meet the asset formationneeds that are a particular focus of working age households as well as the asset management
needs that are emphasized by the retired generation. In addition, we are proceeding with preparations and discussions concerning the integration of our asset management group companies.

Regarding such ﬁelds as agriculture, medical care, and energy, we are investing in funds that
support sixth industry transformation initiatives for the agriculture, forestry, and ﬁsheries industries as well as foster the development of health care and medical/nursing care businesses, andwe are also providing funding for renewable energy businesses. Through these activities, we will
actively provide broad support for the initiatives of our customers in growth ﬁelds.

We acquired a North American wholesale business credit portfolio from Royal Bank of Scotland andthereby accelerated the expansion of transactions with non-Japanese global corporations. Furthermore, we have created a system to enable our ofﬁces throughout the world to collaborate in providing support to customers with the aim of offering them a global business development. In addition,
we are devoting resources to further develop our global network, centered on the Asia region.

We respond to customers’ needs on a global basis by offering sophisticated cash management
services. Furthermore, we provide cutting-edge solutions including cross-border settlement
services for various emerging currencies, hedges against foreign exchange risk, issuing bonds
for foreign trade, securitization of overseas accounts receivable, and trade ﬁnance ECA (export
credit agencies) ﬁnance.
Transformation toward stable and sustainable proﬁt structure centered on income from Customer Groups makes steady progress. At the same time, we have ensured a sufﬁcient level of capitalas of March 31, 2015.

Financial Highlights(Inside pages 3 and 4)

Along with optimizing the training and use of human resources as well as business operations
from a groupwide perspective, we are working to develop stable management foundations,
including next-generation IT systems.

Strengthening Management Foundations(pages 76 and 77, pages 80 and 81)

In addition to strengthening the functions of the holding company, we transformed into a “Company
with Three Committees” in June 2014. We will move ahead with establishing a further advanced
governance structure appropriate for a ﬁnancial services group with a global presence.

Special Features (pages 22 and 23)
Strengthening Management Foundations(pages 66 to 75)

The One Mizuho Promotion Project Team is leading diverse measures. Speciﬁcally, they are providing
support for the realization of their visions created by each of the Group’s divisions and branches andare sustaining such programs as the “Discussions with Senior Management” programs.

Strengthening Management Foundations(pages 78 and 79)

41

Growth Strategies

Key Strategies for Fiscal 2015
Thoroughly Strengthen Operations in the Four Key Focus Areas(1) Establish Competitive Edge in the Area of
Financial Transactions with Large Corporate Customers

Transactions with
Large Corporate Customers

Business Strategies

We are seeking to “establish an overwhelming competitive edge in the area of ﬁnancial transactions with large
corporate customers” by fully leveraging our large corporate customer base, which encompasses approximately
70% of listed companies in Japan; the capabilities of more than 100 “dual hat” employees, who are concurrently
assigned to units within both MHBK and MHSC; and our Industry Research Division, which is the largest such unitof any Japan-based bank.
Speciﬁcally, we are using our industry expertise on a global basis to provide optimal solutions and present strategic conditions, and thereby expanding our proﬁtability from the non-interest business in all sectors of the banking,trust banking, and securities subsidiaries. We intend to expeditiously strengthen the Mizuho brand in the area ofﬁnancial transactions with large corporate customers and realize our objective of becoming No.1 in comprehensive
business promoting capability.

(2) Enhance Our Integrated Approach to
Both corporations and Their Owners

Transactions with
SMEs and Middle-Market Corporations

We are ahead of other ﬁnancial institutions in promoting an integrated approach to both corporations and theirowners, which enables us to provide optimal solutions in an integrated manner between banking, trust banking,and securities functions for dealing with business succession and asset inheritance needs and other needs that
corporations owners have both as company owners and as individuals. We have established a solid managementfoundation in the form of joint branches providing banking, trust banking, and securities functions, ofﬁces with an
integrated approach to both corporations and their owners, and other channels, in addition to building up expertiseand know-how on business succession and real estate.
Going forward, we will be leveraging our strengths as a pioneer in this ﬁeld to provide consulting functions to anincreasingly broad range of customers with business succession and asset inheritance needs, and we will thereby
progressively strengthen our integrated approach to both corporations and their owners.

Financial Strategies to Support Our Business Strategies(1) Additional profit structure reform to achieve growth in non-interest income

Financial Strategies

By promoting further growth in non-interest income and a further rise in RORA, we will realize increases in both our
Common Equity Tier 1 (CET1) capital ratio and ROE.

(2) Financial strategies responding to stricter regulations
To respond to stricter global ﬁnancial regulations, we will take measures to steadily strengthen our capital base andimplement efﬁcient balance sheet management practices.

(3) Measures for achieving our cross-shareholdings reduction target
By reducing our stock portfolio taking into account of the market trends, we seek to reduce our balance of stock
portfolio to “approximately 25% of Tier 1 capital,”* a target set forth in our medium-term business plan.

* Hedging effects are included. Although preferred stocks are not classiﬁed as CET1 capital under Basel III, our calculation includes the Eleventh Series Class XI Preferred
Stock (mandatory conversion date: July 2016) in CET1 capital.

42

(3) Development of the Super 30 Strategy

Transactions with
Non-Japanese Blue Chip Customers

Business Strategies

In our Super 30 strategy, we have selected approximately 30 non-Japanese blue chip customers (a total of approximately 120) at each of our four overseas regional units (the Americas, the Europe, Middle East and Africa, Asia andOceania, and the East Asia units) and begun working to increase multifaceted transactions such as lending as well
as settlement and securities with those customers, aiming to build long-term relationships. These efforts are steadily bearing fruit in such forms as our leading role in arranging large-scale ﬁnance for industry sectors undergoingreorganization.
Going forward, we will further promote our differentiation strategies—such as those for expanding our non-Japaneseblue chip customer base, for strengthening our industry sector-focused approach by operating a proposal-basedmodel and for strengthening the integrated management of banking and securities functions—with the objective of
becoming a global core bank for non-Japanese blue chip companies with strong presences in Japan and Asia.

(4) Make Asset Management the “Fourth Pillar” of Our Business

Asset Management Business

The shift from savings to investments, pension system reforms, and other trends are spurring major changes in theenvironment for asset management business. Amid this environment, we are promoting group-wide strategies
across our banking, trust banking, securities, and asset management subsidiaries to precisely respond to thediverse needs of a wide variety of customers ranging from individuals to pension funds and regional ﬁnancial institutions and offer the highest quality solutions.
Going forward, we are strengthening our asset management business to make it the “fourth pillar” of our business, after the banking, trust banking, and securities. To establish a top brand in the asset management sector inboth qualitative and quantitative terms, we are striving to invigorate Japan’s ¥1,700 trillion in monetary assets andthereby contribute to the expansion of the Japanese asset management market while also undertaking pension
asset management that facilitate Japan’s adjustment to the progress in country’s aging trend.

Building Governance Systems and Establishing Culture(1) Highly transparent management centered on RAF

Management Foundations

Positioning its Risk Appetite Framework (RAF) as the cornerstone of its risk governance, we establish risk appetiterelated policies. By sharing those policies throughout our organization and making sure that operations are managed in accordance with those policies, we are seeking to realize management characterized by a high level ofself-discipline and transparency.

(2) Spreading the One Mizuho Culture throughout the GroupThe One Mizuho Promotion Project Team, which promotes the practice of “Mizuho Values (values and standards of
behavior shared by all employees) is playing the central role in supporting the realization of the “Vision of Individual
Ofﬁces,” which deﬁnes the visions to be aimed for by each division and branch; organizing the “General Managers
Off-site Meeting,” which serves as a forum for general managers to discuss corporate culture-related issues; andmoving ahead with a variety of other measures designed to spread the One Mizuho culture throughout the group.

43

Growth Strategies

Realizing the “New Frontier” of FinanceLooking ahead at the next 10 years, we will aim to contribute to the recovery and ongoing growth of the Japanese economy, andgrowth in Asia and its associated effects on Japan’s economic development. To this end, in April 2013, we have newly formed four
project teams, namely: “Next-generation Retail Service,” “Next-generation Industry Development,” “Next-generation Asia-related
Business,” and “Invigoration of Domestic Financial Assets,” thus, implementing consideration and initiatives for the realization of the“new frontier” of finance.

Developing Next-generation Industries
What Mizuho Aims to Be
Assuming the changes in Japan’s industrial structure overthe next ten years, we will endeavor to contribute to Mizuho’s
growth strategy by nurturing “new industries that will benecessary” and “industries that have growth potential,” with aview especially to restructuring and sustainable developmentof the Japanese economy.

Overview
Based on the discussion of the Japanese government’s
Industrial Competitiveness Council, Mizuho’s Next-Generation
Industry Development PT (Project Team) has selected threefocus fields—“environment and energy,” “agriculture,” and“medical care and silver industries”—and established individual
teams to focus on each field. These teams progressively deepened their studies and took measures to address individual
issues. Also, we have adopted a 10-year perspective on industry development and are striving to identify additional development themes based on analyses of Mizuho’s expertise and its

customers’ needs in the aggregate as well as by drawing on
the know-how of external organizations and specialists.
These initiatives have generated concrete results in suchforms as the establishment of funds and arrangement of advisory contracts focused on industry development. They arecontributing to foster next-generation industries while also
promoting the expansion of Mizuho’s business operations.
Special Feature (pages 30 to 35)

Providing Next-Generation Retail Services
What Mizuho Aims to Be
The progress of IT and expansion of social media has beenaccompanied by a diversification of communications methods, expanded use of electronic settlement methods in individuals’ day-to-day lives, and other trends that are propelling
noteworthy progress in financial technologies. Amid thissituation, Mizuho is employing leading-edge technologies as
it seeks to maintain close relationships with its customers
and provide them with services characterized by ever higher
levels of convenience and amenity.

Overview
In fiscal 2013, we established “Next-generation Retail PT”
comprised of mainly young employees across several divisions to envisage financial services in the future. In April
2014, we also established the Incubation Department. Whileaggregating expertise, technologies, and other resourcesfrom within and outside the Group, the PT has worked togain a deeper understanding of customer needs and moveahead with efforts to develop new services.
In fiscal 2014, we introduced new call center systems thatincorporate Watson* speech recognition technology, andthese systems have made it possible to provide responses
with even greater speed and accuracy. Moreover, we haveinaugurated a new service through a system that undertakes
real-time analysis of the situations of customers accessing
MHBK’s website and offers effective chat-based advice

when the system determines that customers are experiencing difficulties.

Introduced combined service of Speech Recognition
system and IBM Watson Technology at call centers(1) Inquiry

SpeechRecognition
system

WatsonTechnology
Customer(3) Display
response(4) Response

Operator* Watson Technology is IBM’s cognitive computing technology (computer technology aiming to emulate human cognitive capabilities).

44(2) Transcription

Developing Business in Asia
What Mizuho Aims to Be
Mizuho positions Asia as an extremely important region due
to the excellent prospects for ongoing economic growth. To
respond to the strong demand for funds that will be neededalong with the high growth and increases in infrastructure

investments in Asia, we are taking initiatives to create andbuild new businesses in Asia by drawing on our accmulated
know-how regarding financial markets and financial services.

Overview
The Next-generation Asia Business PT is engaged in efforts
centered on the Asia Bond Market Development Project.
Besides private-sector-level efforts to promote bond market
development through mutual cooperation with Asian financial
institutions, the PT is realizing bond issuances based on the
ASE AN+3 Multi- Curre ncy Bond Issuance Framewor k(AMBIF) that are contributing to the additional developmentof bond markets in the Asia region.
In April 2015, we acquired regulatory approval from the
Ministry of Finance of Thailand to issue THB-denominatedbonds in the Thai domestic market (up to THB3.2 billion)
under the AMBIF. Accordingly, we have commenced specificpreparation work toward issuance. This will be the first issuance of bonds under the AMBIF.

Invigorating Domestic Financial Assets
What Mizuho Aims to Be
Amid the economic environment shift from deflation to inflation, maintaining and expanding households’ financial assets
requires more than investments in such safe assets as savings
accounts and government bonds. It is becoming increasingly
important for individuals to equip themselves with adequatelevels of financial literacy so that they can select the mostappropriate financial products.

Mizuho has established a project team to invigorate Japan’s
approximately ¥1,700 trillion in monetary assets. Through measures including those to provide services in line with changes
in the environment, the project team is moving ahead withefforts to realize fund flows that enable growth in household
assets and also promote the growth of Japan’s economy.

Overview
Noting that a high share of Japan’s households’ financial
promote medium- to long-term asset accumulation- andassets are held by seniors and that those assets are generalmaintenance-related objectives in light of the trends of rising
ly fixed in forms centered on savings accounts, the Domesinflation and increasingly long lifespans. For working age housetic Financial Asset Invigoration PT studied cases of financial
holds, we are making government policy recommendations andasset invigoration in other developed countries. We are at an
taking other initiatives to promote the use of long-term andappropriate stage for considering concerted public- andfund-based asset formation methods and encourage greater
private-sector ef for ts over the long term centered on
diffusion of defined contribution pension and NISA systems.
medium- to long-term investments as well as
on defined contribution pension systems,
Financial assets held by households (comparison Percentage ratio to the
NISAs*, and others. As a financial institution
total financial assets (%)
of Japan and U.S., as of December 2014)
with such assets as channels, consulting
Currency and deposits
Insurance and pension reserves
Shares and equities
capabilities, and an array of financial product,Investment trusts
Bonds
Others1.7
Mizuho is working based on a long-term
52.5
26.4
9.5 5.5 4.4
perspective to act as a leader in the financial
Japan
industry and contribute to the invigoration of(¥1,694 trillion)
13.4
32.5
33.4
13.1 4.7
domestic financial assets by implementing
United States
diverse measures.
(USD68.0 trillion)
2.9
Specifically, for the retired generation, we are
0
10
20
30
40
50
60
70
80
90
100
promoting the provision of consulting services* “Others” is the residual which is the remaining after deducting “Currency and deposits,” “Insurance andpension reserves,” “Shares and equities,” “Investment trusts” and “Bonds” from total financial assets.
that not only respond to asset management
Source: Prepared by MHFG based on Bank of Japan’s “Flow of Funds—Overview of Japan, US, and the Euro area—”needs emphasizing short-term gains but also
* NISA: Nippon Individual Savings Accounts

45Growth Strategies

Contributing to the Solution of Social Issues to Promote Sound Economic
Mizuho recognizes that CSR initiatives help contribute to the sustainable development of society and provide the platform for creating and advancing our group’s corporate value. Based on this idea, we have identiﬁed the strengthening efforts to promote businesses that contribute to the sustainable development of society as one of our CSR initiative policies to address over the mediumto long-term. Therefore, in addition to harnessing our broad ﬁnancial service functions and supporting the real economy from themedium- and long-term perspective, we are promoting business that contributes to the sustainable development of society inresponse to the renewed expectations of stakeholders as a global ﬁnancial group.

Social Issues

Mizuho’s Major Initiatives

Toward sustainable social development

Environment
andEnergyProtect the
Global Environment
while Simultaneously
Providing Stable
Supply of Energy• Applies the Equator Principles to promote ﬁnance-related considerationof environmental and social impacts• Offers ﬁnancial products and services that encourage society to promote
environmental consideration• Provides eco-friendly loans and ﬁnancings for renewable energy projects• Implements initiatives for environmental city projects• Engages in environment-related consulting services, surveys and researchSpecial Features (pages 30 to 32)

Toward the realization of a safe and dynamic society

Aging
Societywith
Declining
Birthrate

Initiatives
addressing an
aging society
with a declining
birthrate• Promotes the application of barrier-free and universal design concepts• Develops and provides products that respond to needs related to effective
asset utilization and asset inheritance• Provides services that are simple and convenient, as well as easy tounderstand and use• Makes efforts to prevent ﬁnancial crimes
Business Approaches (pages 50 to 55)

Toward contributions to social andeconomic development over the coming 10 years

Industrial
Development
andInnovation

Responding
to Changes
in Social
and Industrial
Structure• Activities to support growth companies and nurture next-generationindustries
Special Features (pages 30 to 35)• Pursues next-generation business models in retail ﬁnance• Fosters the development of Asian bond markets with an eye to promoting
economic growth and increased infrastructure investment• Works to invigorate domestic asset ﬂows to promote growth in household
assets and economic growth
Growth Strategies (pages 44 and 45), Business Approaches (pages 49 to 63)

Regional
Revitalization

Revitalizing
Regional Economies
Based onConsideration of
Challenges Associatedwith Population
Decreases

Toward regional revivals andthe recovery of disaster-stricken areas• Cooperates with local government entities and regional ﬁnancial institutions to revitalize regions• Leverages ﬁnancing and consulting functions to help solve challenges
faced by local companies• Provides sustained support for the recovery of industries and societies ofthe disaster-stricken areas of the Great East Japan Earthquake in ways thatgenerate employment opportunities
Business Approaches (pages 58 and 59, 62 and 63)46

and Social Development
Initiatives for the Equator Principles
Consistently Applying the Equator Principles to Financing Projects
The Equator Principles are guidelines to conﬁrm that whenﬁnancial institutions are participating in large scale infrastructure projects, these projects are taking environmental andsocial risk impacts into consideration. Under the Equator
Principles framework, Equator Principles Financial Institutions(EPFIs) will assess the impact of projects on the environment

and the communities and incorporate compliance measures
to meet the guidelines as a requirement of their funding.
MHBK became the ﬁrst Asian bank to adopt the Equator
Principles in 2003 and since its adoption, it applies the principles globally through the original Mizuho Equator Principles
Implementation Manual and consistent in-house training.

Exerting Leadership in Equator Principles Association Activities
More than ten years since its adoption, MHBK has been involvedin operation and planning of the Equator Principles Association(EPA). In May 2014, it assumed the role of the Chair of the Equator
Principles Association as the ﬁrst bank in Asia and plays a leadership role in the organizational management of the Association.
These activities have been highly evaluated, and MHBK has
been selected for special recognition for its good practices inaccordance with the “Principles for Financial Action towards a

Sustainable Society,” which have been signed by approximately 190 ﬁnancial institutions and other companies in Japan.

Annual Meetingof the Equator
Principles Association (EPA)

Promotes the application of barrier-free and universal design concepts
The Mizuho Heartful Project—Aiming to be “a Bank that Is Easy for Anyone to Use”
Aiming to be “a bank that is easy for anyone to use regardlessof age, gender, or disability,” MHBK has been implementing its
Heartful Project since 2005. The Heartful Project is promoting
the use of barrier-free and universal design concepts throughthree kinds of initiatives—facility-related initiatives (buildings,
facilities, devices, etc.), service-related initiatives (customer
forms and documents, Internet contents, etc.), and psychological initiatives (education and training to improve customer relation skills, etc.). Since ﬁscal 2013, MHTB and MHSC havebeen implementing the same kinds of measures.
Service-related initiatives in ﬁscal 2014 included MHBK’srevision of its ATM screen formats to increase customer convenience and MHTB’s introduction of white boards at all its
branches to facilitate written communications with customers

who have difﬁculty communicating orally. Regarding psychological initiatives during the ﬁscal year, MHBK and MHTB
implemented “dementia supporter” training courses for morethan 1,200 participants, bringing the cumulative number ofparticipants to more than 3,000. While regarding facility-related
initiatives, MHSC made preparations for the installation of
automated external deﬁbrillators (AED) at all of its branches.

Signs are posted by the entrances andexits of each MHBK branch to explain
the branch’s barrier-free status.

Mizuho Heartful Business—Aiming to Spread Heartful Practices throughout Society
Since ﬁscal 2010, MHBK has been pursuing its “Mizuho Heartful Business,” which supports initiatives undertaken by corporate and individual customers to promote barrier-free concepts
and Universal Design Principles. MHBK’s ﬁnancial support
program for Heartful Companies* among its corporate customers offers such products as Mizuho Heartful Loans andMizuho Heartful Private Placements and also undertakes business matching services and other services for companies
focused on business aimed at elderly customers.

* Heartful Companies• Companies that offer products or services that improve
the lives of the elderly or disabled.
• Companies that actively employ the elderly or disabled
and improve workplace environments toward that end.
• Companies that recognize diverse work styles and create
workplaces that are open to all.

47

48

Business Approaches

49

Business Approaches Personal Banking Unit

To be a financial group that continues to bechosen by customers by improving ability toprovide services
In order to satisfy the needs of individual customers throughout their lives, Mizuho
prepares ﬁnancial plans to meet the various stages and circumstances of their lives
and provides each customer with optimal products and services. By fully leveraging
our banking, trust banking, and securities functions, we will respond to a wide range
of ﬁnancial needs of our customers.

Tetsuhiko Saito Head of Personal Banking Unit

Business Environment and Mizuho’s Strategies

Achievements in Fiscal 2014

While the Japanese economy is gradually recovering, theprogress of demographic graying is increasing customer’s
needs related to asset formation and management. Given thatroughly 60% of Japan’s approximately ¥1,700 trillion in monetary assets is held by people aged 60 and above, the current“shift from savings to investment” trend is expected to be
going forward by growing moves to transfer assets to the next
generation.
Moreover, individual customers’ lifestyles are changing withthe progress of digital technologies and diffusion of social
media, and ﬁnancial needs related to those lifestyles are
becoming increasingly diverse.
Recognizing these changes in the business environment,
we are striving to provide products and services of MHBK,MHTB, and MHSC in ways that comprehensively satisfy theneeds of individual customers throughout their lives, including
the asset accumulation needs that are a particular focus ofworking age households along with the asset management
needs that are emphasized by the retired generation.
In addition, given the growing diversity of transaction settlement methods—including those involving Internet transactions
and those involving electronic money—we are proactively
striving to provide customers with increasingly convenientservices by leveraging the latest technologies with the goal of
anticipating and pioneering next-generation ﬁnancial methods.

Aiming to more accurately address customers’ increasingly
diverse needs, Mizuho is maintaining its efforts to further augment its banking, trust banking, and securities functions.
Responding to customers’ wide range of asset management needs, MHBK and MHSC are increasing their lineup ofasset management products, and each MHBK branch has
begun undertaking Financial Instruments Intermediary Service
for MHSC’s ﬁnancial products as well as promoting asset
formation methods involving Nippon Individual Savings
Accounts (NISAs).
To support the customers’ asset inheritance processes
smoothly, MHTB has signed testamentary trust agency contracts with MHBK and MHSC, which are expanding their related consultation window operations. In addition, MHTB has
begun offering qualiﬁed educational fund giving trusts named“Manabi no Okurimono” as well as Mizuho Family Trust and“Omoi no Okurimono” aged donation trust products.
Aiming to further increase customers’ convenience in using
Mizuho services, we are expanding our branch network andare also striving to upgrade our Internet banking and smartphone banking services, revise ATM interface screen formats,and take a continuing series of other measures designed tomake use of our services easy for all kinds of customers.

External Environment and Mizuho’s Strong Points
Balance of Investment Products(trillions of ¥)
25

120%

20
15
10
5
0

50

FY2012FY2013

FY2014

MHBK

MHTB

MHSC

Mizuho offers a variety
of investment products,
and MHBK has taken
the initiative to introduce
its customers with securities investment needs
to MHSC. As a result,the balance of investment products is steadily increasing.

Number of Inheritance Distribution Service(No. of contracts)

130%

1,200
1,000
800
600
400
200
0

FY2011FY2012FY2013

FY2014

MHBK+MHSC
Collaboration

Industry-leading
performance
MHTB acts as agent forheirs in executing theprocedure s of inherit a n c e. C u s to m e r s of
MHBK and MHSC are
also making use of thisservice.

Providing ﬁnancial functions in line with customers’ life stages and life events
Asset buildup stage
Life Stageof Customers

Financial needs

Mizuho’s
Approach

10s

20s

Entrance
into
College

30s

Employment Marriage

Daily settlements

Asset management and inheritance stage

40s

50s

60s

House
purchase

Children’s
entrance
into school

Retirement

Loans, Insurance, Monthly deposits

70s

80s
To the next generation

Asset management

Asset inheritance

Provide products and services withstrong emphasis on customer convenience

Practice consulting-based marketing that leverages
integrated banking, trust banking, and securities functions

Provide advanced products and services while expanding
provision channels in line with customers’ lifestyles

Offer asset management and asset inheritance products
and services in line with customers’ needs

Case (1)Case (2)

Revision of ATM Screens

Expansion of Branch Network

Based on the opinions expressed by customers, MHBK has
revised and enhanced its ATM interface screen formats.
Having adopted universal design elements for the layouts,
colors, and other aspects of these screens, MHBK became theﬁrst company in Japan’s ﬁnancial industry to receive Usability
Veriﬁed by User Testing mark certiﬁcation from JITSUKENINSTITUTE.

T h e n u m b e r of M i zu h o’s j o i nt
branches providing banking, trust
banking, and securities functions,has increased to 186 branches
as of March 31, 2015. On top ofthis, Mizuho has banking branches in ever y prefecture, and theindustry-leading securities branch
network in Japan.

Case (3) Example of Efforts to Promote Medium- to Long-Term Growth
Enhancing Services Provided through Internet, Smartphone, and Other Channels
MHBK has begun offering a housing
loan refunding, for which application can be completed via the Internet without visiting a branch ofﬁce.
Moreover, MHBK has begunof fering Charging-up/Debiting
functions to “LINE Pay”, so MHBK
customers can now easily transfer
money to other LINE users without

knowing transferees’ detailed bankaccount information.
Mizuho is developing andreleasing new applications andservices on smartphones, and it
has become the ﬁrst company in
any industry to receive the MCPCAward’s Encouragement Prize forfour consecutive years.

*MCPC: Mobile Computing Promotion Consortium

Number of ATMs
ATMs of MHBK:
approximately 1,800 Locations
ATMs of Aeon Bank:
approximately 4,900 Locations
No.1 ATM Network among
Japanese Megabanks
approximately 6,700 Locations

No.1 ATM Network
AEON Bank ATMs arelocated nationwide inJapan in supermarkets,convenience stores, andelsewhere. Customers
will have access to ATM
se r v ic e s at the s a m efees charged via MHBK
ATMs.

Controlled using
LINE Pay
Charging up

Debiting

Funds can be transferred without knowing
transferees’ detailed bank account information
LINE Pay Account Charging-up/Debiting Functions“Retail Banking Survey” on ProductOffering Adequacy*
Rank Bank

Score

1

Mizuho Bank

75.8

2

THE NISHI-NIPPON CITY BANK

74.6

3

Sumitomo Mitsui Trust Bank

73.6

4

Sumitomo Mitsui Banking Corporation

71.7

5

Resona Bank

71.3

No.1 in Survey
Mizuho has been rated
No.1 on "Product Offering Ad e quacy" in th ebanking industry in the
sur vey conducte d by
Nikkei.

* Nikkei survey conducted in September 201451

Business Approaches Retail Banking Unit / Corporate Banking Unit

Retail Banking Unit

Realizing our goal of being a long-term business
partner with regard to both corporations andtheir owners
In line with our “Connecting customers’ businesses and assets as a long-term business partner regarding both corporations and their owners” policy, we are meetingthe needs of customers centered on corporate owners by leveraging our “integrated
approach to both corporations and their owners” and our “integrated strategy forbanking, trust banking, and securities functions” to provide comprehensive solutions.

Keiichiro Ogushi Head of Retail Banking Unit / Head of Corporate Banking Unit

Business Environment and Mizuho’s Strategies

Achievements in Fiscal 2014

Currently, the average age of presidents of Japanese companies is progressively rising, while the rate of president succession is remaining low. Moreover, against the backdrop ofincreases in the Nikkei Stock Average and in land prices, theinheritance-related costs of corporate owners and land owners
are trending upward. Amid this environment, business andasset inheritance issues are becoming increasingly urgent, andthe methods are becoming increasingly diverse, so there is astrong need for solutions that enable customers to handle
inheritance processes in an appropriate and smooth manner.
Positioned as a specialized unit, this unit has since ﬁscal
2013 been augmenting its efforts to address issues centeredon those related to business and asset inheritance in line withthe “integrated approach to both corporations and theirowners” and “integrated strategy for banking, trust banking,and securities functions.” Although competition in this ﬁeld isintensifying, we are positioned to leverage ﬁve competitive
advantages that enable us to continue providing customers
with optimal solutions, in addition to the advantage we have asa pioneer in this ﬁeld. Aiming to further accelerate our integrated approach to both corporations and their owners strategy
going forward, we are establishing training and other systems
that enable us to foster the development of human resources
equipped with the skills needed to approach customers withrespect to both corporations- and their owner-related issues.

As a result of our strengthening of such pioneering efforts, wewere able in ﬁscal 2014 to increase the number of new customers to 1.8 times the level in ﬁscal 2012 and further expand
our customer base. Reﬂecting our approach focused on
business and asset inheritance, we increased the value ofreal estate for lease-related lending to corporate owners andasset administration companies to 1.3 times, and asset
management-related income grew to 1.4 times the ﬁscal 2012
level. Moreover, we have prepared brochures and other tools
for group-wide use that explain various kinds of succession
and inheritance methods, and we are developing additionalpresentation tools that enable corporate owners to moreeasily understand their options.
To still further upgrade our services, the general managers
are beginning to directly meet with and handle relations withapproximately 20,000 selected customers while making useof the functions of various group companies and businessdivisions. Regarding ultra-high net-worth individuals, ourgroup company exclusively providing private bank ing
services, Mizuho Private Wealth Management, is leveraging
integrated banking, trust banking, and securities functions toaddress ﬁnancial issues and is also providing non-ﬁnancial
services through such means as referrals to medical institutions, education-related companies, and others.

External Environment and Mizuho’s Strong Points
Average Age of President

President Succession Rate and AverageAge of President

52

President Succession Rate

(Age)
60

(%)
5

58

4

56

3

54

2

52
1
1992 1995 1998 2001 2004 2007 2010 2013

The average age of presidents is steadily rising.
More ove r, the pre sident succe ssion rate
has been trending
downward since 2010.
(Source)Teikoku Databank

Number of New Customers(times)2.0

1.8 times

1.5
1.0

0.5

FY2012FY2013

FY2014In ﬁscal 2014, the numberof new loan transaction
customers rose to 1.8
times the number inﬁscal 2012, and we arecontinuing our efforts to
fur ther expand ourcustomer base.

“Owner” business model of Mizuho
Corporations

Business matching

Provide solutions related to succession in
an integrated approach to “both corporations and theirowners” as well as in an integrated manner between“banking, trust banking and securities” functions

Business succession
Business
succession

MHBK
MHTB

Succession consulting

Testamentary trust

MHTB

MBOs/M&As

Stable management of
total assets
Investment trust & insurance
Equity & bonds

Asset inheritanceAssetsuccession

MHSC

Obtain “main bank status” leveraging
succession / inheritance services

Nextgeneration

MHBK

Financing
Investment trust & insurance

MHTB

Real estate
Trust products

Assetbuild-up

InheritanceMHSC

IPOs/POs
Equity & bonds

Perpetuate individual business relationship

Perpetuate corporate business relationship

Business
expansion

Financing

Five Competitive Advantages of Mizuho“Corporate owner”

Business expansion

Differentiation from other banks

OwnersExpansion of the customer baseOfﬁce network in Tokyo Metropolitan
Area for integrated sales promotion toboth corporations and their owners
No.1 in the number of joint branches
between “banking, trust banking andsecurities” functions
Expertise of the trust function in realestate business
Consulting knowledge of successions (30years for MHTB and 10 years for MHBK)Capabilities to provide ﬁnancial
solutions to corporate customers
leveraging industry knowledge

Case (1)Case (2)Integrated Approach to both Corporations and Their Owners

Strengthening Proposal Capabilities through Use of Tablet Terminals

As part of its efforts to build close ties with regional communities, Mizuho is proactively approaching chambers of commerce and other regional assembly as a means of strengthening its relationships with corporate owners. In addition to
responding to owners’ business inheritance needs, we offer
advice on methods of passing personal assets on to the next
generation (asset inheritance).

Mizuho is equipping all of its relat i o n s h i p m a n a g e r s ( R M s) w i t htablet terminals loaded with diverse
kinds of information and presentation tools, such as sof tware forcalculating inheritance taxes. When
RMs are assessing every customer’s needs, the tablets make it possible for them to speedily provide
information and offer solutions.

Case (3) Example of Efforts to Promote Medium- to Long-Term Growth
Strengthening Relationships with Customers through Seminars and Corporate Membership Associations for Corporate Owners
As part of our activities addressing corporate owners, we utilize
an integrated strategy for banking, trust banking, and securities
functions to organize top owners’
seminars and seminars focusedon individual topics related tobusiness and asset inheritanceand asset management. We do
our utmost through these activities

Value of Loans related to Real Estate
for Lease(times)1.5

1.3 times

1.0

0.5

FY2012FY2013

FY2014

to provide owners with information and advice in accordancewith their needs.
In addition, more than 20,000
business owners have become
members of the Group’s FORUM-M
association, which is exclusively
for corporate owners.

Reﬂecting our approachfo c u s e d o n b u s i n e s s
and asset inheritance,
Mizuho Bank increased
the value of its realestate for lease-related
l e n d i n g to i n d i v i d u a lcustome rs a nd as set
administration compan i e s to 1.3 ti m e s th eﬁscal 2012 level.

Asset Management-Related Proﬁt(times)1.5

1.4 times

1.0

0.5

FY2012FY2013

FY2014

O w i n g to M i z u h o’s
integrated approach toboth corporations andtheir owners, theMizuho Group’s asset
m a n ag e m e nt-re l ate d
proﬁt grew to 1.4 times
the ﬁscal 2012 level.

53

Business Approaches Retail Banking Unit / Corporate Banking Unit

Corporate Banking Unit

Contributing to economic growth in Japan by
performing a wide range of financial functions andsupporting the growth strategies of corporations
We are utilizing the group-wide capabilities to meet the diverse needs of our SME andmiddle-market corporate customers in line with their development stages—not only
providing funds and settlement solutions but also offering growth strategy support inmanagement issues, such as those related to business strategies and ﬁnancial strategies, including M&A, business inheritance, overseas business expansion support.

Keiichiro Ogushi Head of Retail Banking Unit / Head of Corporate Banking Unit

Business Environment and Mizuho’s Strategies

Achievements in Fiscal 2014

The Japanese economy’s gradual recovery trend has beenaccompanied by rising expectations of a gradual recovery in
the funding demands of our SME and middle-market corporate customers. As our customers’ ﬁnancial needs are
becoming increasingly diverse, sophisticated, and global, we
are seeking to provide them with optimal products and solutions to contribute to the resolution of customers’ management challenges and to the elevation of their corporate value.
Amid this environment, the Corporate Banking Unit isworking to expand its customer base and seeking to gain
good understandings of the special management challenges
so that it can make full use of the Group’s advisory and consulting functions and thereby proactively move ahead withmeasures to support customers’ growth strategies.
Speciﬁcally, we are enhancing our efforts to identify promising companies at their creation and growth stages, andworking to supply business matching- and integrated banking, trust banking, and securities function-related support forcustomers’ IPOs. For customers at mature and transitional
development stages of their life cycles, we are offering growthstrategy support such as those related to MBOs, businessinheritance, entries into new business ﬁelds, business reorganizations, and the launch of overseas operations. In all theserespects, Mizuho as a whole is striving to work to provide
customers with sophisticated ﬁnancial solutions.

Owing to our intensiﬁcation of these efforts during ﬁscal 2014,
we were able to increase the number of new customers to alevel 1.3 times the ﬁscal 2012 level. By responding to diverse
kinds of funding needs, we realized year-on-year growth in thevalue of our loans to SMEs and middle-market corporations.
In light of rising needs related to M&A transactions andoverseas business launches in connection with the growthstrategies of owner-managed companies at maturing stages,
we have been striving to appropriately respond to management issues characteristic of customers’ corporate life-cycle
stages through the integrated responses by various groupdivisions and companies that are designed to elevate customers’ corporate value. Regarding suppor t for customers’
launches of overseas operations, we are endeavoring to provide optimal information and services related to such processes as overseas business strategy formulation, the establishment of overseas subsidiaries, and the post-establishment
business management of overseas subsidiaries. Consequently, the value of our business supporting launches of overseas
operations during ﬁscal 2014 was 1.2 times the 2012 level.
In collaboration with MHSC, MHTB, and other group companies, we are proactively working to provide services tostrengthen our response to customers’ M&A strategy-related
advisory and ﬁnance arrangement needs and meet the needsof customers planning IPOs.

External Environment and Mizuho’s Strong Points
BOJ Tankan (Short-Term Economic Surveyof Enterprises in Japan) Business Conditions
DI (Manufacturing/ Results)(% points)
40
20

Large Enterprises
Medium-sized Enterprises*Diffusion index of“Favorable” minus“Unfavorable”(Source) Bank of Japan

Number of New Customers(times)1.50

1.3 times

1.25

0
1.00
–20
–40

54

FY2010FY2011 FY2012

FY2013 FY2014

0.75

FY2012FY2013

FY2014Reﬂecting our efforts to
expand our customer
base, the number of ourloan-transaction customers in ﬁscal 2014 was
1.3 times the ﬁscal 2012
level.

Addressing Customers’ Management Issues According to the Growth Stages of a Company
Business start-up stage, Growth stage· Expansion of sales
channels· Financing· Stabilize business
infrastructure· Stable ﬁnancing, etc.

Business
start-up stage· Expansion of sales channels(overseas)· Acquisition of competitors· Establishing brand· Funding· Risk management
Growth· Securing humanstage
resources· Strengthening ﬁnancial bases· Cutting costs· POs, IPOs

Maturing stage, Transition stage· Launching new businesses and growing and transforming
existing businesses
Expansion· Expansion of sales channels (overseas)stage· Increasing the sophistication of funding and management methods· Acquisition of competitors · Cross-industry acquisitions, etc.
· Business reorganization· Intra-family business inheritance· Rationalizing and increasing the efﬁciency of funding· Review of capital structure, etc.

Maturing
stage· Business renovation, organization, and disposal· Debt reduction, management reform· Cut costs, etc.

Declinephase

Case (1)Case (2)Business Matching

Business Inheritance

To provide its customers withvenues for encountering prospective business par tners, MHBK
organizes sessions of the Business Matching Forum. In ﬁscal
2014, approximately 200 business discussions between customers took place in each forum
held by Mizuho.

Business inheritance is one of the most important management issues for SME and middle-market corporate customers
because it simultaneously raises succession issues pertaining
to the company’s ownership and the owner’s own assets.
Regarding business inheritance-related challenges, Mizuho
offers custom designed proposals based on an understandingof the special aspects of each business.

Case (3) Example of Efforts to Promote Medium- to Long-Term Growth
IPO Support Framework
To facilitate active exchanges of
information among customers
planning IPOs, Mizuho has
become the only mega-bankgroup to offer networking events
for such custome rs (Mizuho
Wakaba Association meetings)
that are jointly organized by theGroup’s banking, trust banking,and securities companies.

Balance of Loans to SMEs, etc.
(trillions of ¥)
31

30

29

The meeting held in July 2014
was attended by representativesof approximately 140 corporate
customers.
Going forward, Mizuho groupcompanies will continue closelycollaborating to support customers’ IPO-related activities andthe re by contribute to Japan’s
industrial development.

We are proactively
responding to SME andmiddle-market corporate customers’ wideranging growth fundingneeds.

A Mizuho Wakaba Association
meeting jointly organized by
MHBK, MHTB and MHSC.

Number of Customers Provided with
Overseas Business Launch Support(times)1.25

1.2 times

1.00

End of FY2012 End of FY2013 End of FY2014

0.75

FY2012FY2013

FY2014

As a result of our efforts
to provide optimal solutions to custom e r s’management challenges, the number of ourc u s to m e r s p r o v i d e dwith suppor t for overseas business launches
is rising.

55

Business Approaches Corporate Banking Unit (Large Corporations)

Fully leveraging Mizuho’s No.1 customer base andindustry expertise in the industry and establishingcompetitive edge for large corporate customers
Based on its strong and long-lasting relationships with approximately 1,600 groupsof large corporate customers, Mizuho is positioned to offer a full lineup of ﬁnancial
solutions that combine its specialized functions in banking, trust banking, and securities to meet customer needs for fund-raising and management as well as ﬁnancial
strategies.

Daisuke Yamada Head of Corporate Banking Unit

Business Environment and Mizuho’s Strategies

Achievements in Fiscal 2014

With the increasingly diversiﬁed, sophisticated, and globalizedﬁnancial needs of large corporate customers, ﬁnancial institutions need to offer comprehensive solutions to their customers.
To respond to those needs, Mizuho is moving ahead with
its integrated management of banking, trust banking, andsecurities businesses. Staff members are concurrently working in some divisions at both MHBK and MHSC, thus promoting further collaboration within the Group at home and overseas. In addition, RMs of MHBK and MHTB are working
together to offer the optimal trust solutions to their customers
such as real estate, pensions, and securities administration.
We are also collaborating with Mizuho’s Industry Research
Division, which acts as the research team, proposing global
and comprehensive solutions to customers on the basis of its
deep understanding of industry. By fully leveraging theseadvantages, Mizuho’s RMs for large corporate customers
accurately identify their customers’ management issues andoffer diversiﬁed solutions to help them realize their growthstrategies. Services range from precisely identifying customers’ management issues to providing support for realignmentof domestic businesses, implementing cross-border M&A,
and global business development. Furthermore, we will leverage our sophisticated risk-taking functions to pursue “newgrowth business” initiatives, such as agriculture, energy, andhealthcare.

In ﬁscal 2014, the Corporate Banking Unit (Large Corporations) implemented initiatives centered on ﬁve kinds of measures. The ﬁrst kind of measures relates to “seamless management of integrated banking, trust banking, and securities
operations.” We systematically strengthened MHSC’s coverage and developed domestic and overseas collaboration
related to cross-border M&A transactions, and emphasized
proposal-based marketing utilizing our consulting power intrust banking. The second, focused on the “borderless management of integrated domestic-overseas operations,” weadvanced with the building of global-basis marketing postures
for each type of operations while also emphasizing the obtaining of new overseas customers with ties to Japan. The third—“effectively utilizing risk money”—included hybrid ﬁnance- andreal estate-related equity investments, and we also moved
forward with efforts to make contributions to the government’s
growth strategies for the ﬁelds of agriculture, energy, andhealthcare. The fourth, to the “development and strengtheningof a stable proﬁt foundation,” we took steps to strengthen ourlending-related responses to customers’ needs as well as tostrengthen our transaction business. The ﬁfth—“corporate/individual coordination”—we progressively strengthened thecoordination of our marketing departments and branches inconnection to efforts to respond to the needs of large domestic companies’ afﬁliated companies and employees.

External Environment and Mizuho’s Strong Points
Proportion of Overseas Production and
Proportion of Overseas Capital Expenditure(%)
30(Source) Ministr y of
Ec o n o my, Tr a d e a n d
Industry’s 44th Surveyof Overseas Business
Activities Survey (Survey
held in July 2014)

25
20
15
10
5

56

0
FY2004

Proportion of Overseas
Production
Proportion of Overseas
Capital Expenditure

FY2007FY2010FY2013

Any Japanese Involvement M&A Amountand Proportion of Overseas M&A(trillions of ¥)
(%)
9
70
60
8
7
50
6
40
5
30
20
4
3
10
2
0
FY2010 FY2011 FY2012 FY2013 FY2014

IN-OUT Amount
IN-OUT Proportion(Source) Thomson Financial

Image of the Corporate Banking Unit (Large Corporations)
Large Corporate Customers
Accounting andTreasury divisions

Management andPlanning divisions

Human resources andAdministration divisions

Business divisions

Marketing units are the keystone of efforts via all kinds of channels to grasp customer needs and become No.1 in comprehensive business promoting capability

Each function divisions

RMs for large
corporate customers

Industry Research Division

The One Mizuho strategy’s ‘hub functions’ are key drivers of the Group’s growth.
Domestic ofﬁces

MHTB

MHSC

Overseas ofﬁces

Group companies

Case (1)Case (2)Softbank’s Subordinated Bond for Retail Investors

Project Financing for JX Nippon Oil & Gas Exploration

Centering on the Corporate Banking Divisions of MHBK and
MHSC, which work in close cooperation, the two group companies have engaged in sustained discussions about customers’ ﬁnancial and business strategies going forward and how
best to meet those needs. One result of those efforts is theunder writing of a large-scale subordinated corporate bondissuance for retail investors, for which MHSC served as the
top-left bookrunner.

This project ﬁnance loan is for theworld’s largest “Post-Combustion
Carbon Capture-Enhanced Oil
Recovery Project.”
MHBK arranged loans as thesole mandated lead arranger,
leveraging its sophisticated expertise in the areas of natural resources and environmental business aswell as its know-how on ﬁnance.

WA Par ish Powe r Plant in
Te x a s , U S A ( c o n c e p t u a ldrawing)

Case (3) Example of Efforts to Promote Medium- to Long-Term Growth
Development of Medical Device Business Incubation Fund
Together with Innovation Network
C o r p o r ati o n of Ja p a n (IN C J),MHBK established the Medical
Device Business Incubation Fund
(MPI-1 Investment Limited Partnership). This fund was established to become a bridge
between the technology seeds
held by Japanese universities,
research institutes, and SMEs

and medical device manufacturers, aiming to develop a road map
for and successful model for thecommercialization of Japanese
medical device technology, inhope of improving the incubation
environment for medical devices
in Japan.

Domestic Straight Bond League Table
Amount(billions of ¥)

Share
(%)

Mizuho Securities

1,584.7

22.4

Nomura1,516.9

21.5

Daiwa Securities

1,194.3

16.9

Rank

Company Name

1
2
3

The role of the fund in the commercialization process
Business
designIdea

Development Clinical testing(including pre-clinicalstudies)(including clinicalstudies)

Regulatory
approval

Commercialization

MPI-1 Investment
Limited Partnership
Funding
Clinicalneeds
Innovativetechnologies

Sell

Medical device manufacturers

Sell

Medical device
start-up company

Special-Purpose
Companies

Sell

Medicaldevicemanufacturers(Source) Compiled by MHBK based on the MedVenture Partners website* Underwriting amountbasis, including wholesale bonds, electr ic
power bonds, andretail bonds (April 2014
to March 2015, pricing
date basis)(Source) Compiled by
MHBK, based on datafrom I-N Information
Systems

M&A Advisory Ranking for Publicly
Announced Deals
Rank Company Name

AmountNo. ofdeals (billions of ¥)1

Mizuho FG

167

3,753.4

2

Sumitomo Mitsui Finl Grp

140

1,086.5

3

Nomura112

3,825.2* Based on No. of deals
Japanese companies
were involved in (April
2014 to March 2015)(Source) Compiled by
MHBK, based on information from Thomson
Reuters57

Business Approaches Financial Institutions & Public Sector Business Unit

Providing customers among financial institutions
and public-sector entities with comprehensive
financial services and enhancing regional innovation
Mizuho offers optimal solutions to meet the needs of customers among ﬁnancial institutions and public-sector entities. These include advise on ﬁnancial strategies, proposals for investment products, underwriting public bonds and performing services
as a designated ﬁnancial institution. Moreover, by collaborating with customers
among those institutions, we are working to enhance regional innovation.

Kenji Tsujitsugu Head of Financial Institutions & Public Sector

Business Environment and Mizuho’s Strategies

Achievements in Fiscal 2014

In ﬁelds emphasized by the Japan Revitalization Strategy,—such as business related to agriculture and public-private
partnerships and private ﬁnancing initiatives (PPPs and PFIs),
businesses are being created and opportunities are emerging
that are related to the Tokyo 2020 Olympic and Paralympic
Games and other initiatives. In addition, to promote the creation of autonomously sustainable societies in each region ofJapan, the government is moving ahead with various initiatives designed to support the reinvigoration of regions.
Working in cooperation with regional ﬁnancial institutions aswell as central and regional government units, we are striving
to contribute to regional revitalization by offering consulting
services, funding arrangements, and other kinds of support.
Speciﬁcally, we have joined and are funding the Agriculture,
Forestry, and Fisheries Sixth Industry Fund and are supporting regional development in growth ﬁelds.
Against the backdrop of such trends as rising needs associated with major insurance companies’ moves to step up
their overseas business development, needs related to theincreasingly diverse and sophisticated asset management
operations of public pension funds and ﬁnancial institutions,and growing needs related to regional ﬁnancial institutions
capital policies, Mizuho is striving to enable its customers to
overcome the challenges they face by providing optimal solutions based on cooperation among group companies.

In ﬁscal 2014, Mizuho organized collaboration among its
group companies to provide numerous ﬁnancial institution
customers with optimal solutions by providing supports related to the overseas M&A initiatives of major insurance companies, offering ﬁnance-associated responses being madebased on responses to new regulations, proposing a wide
range of asset management products, and other issues.
For our customers among public-sector entities, we offeredcomprehensive ﬁnancial services including the provision ofﬁnancing support through the underwriting of public bonds,
the performance of designated ﬁnancial institution services forsuch customers as the Tokyo metropolitan government, participation in PFI/PPP schemes, and the arrangement of syndicated loans.
To revitalize regional economies, we worked in cooperation
with ﬁnancial institution and public-sector entity customers toprovide risk money to growth sectors and offer investee companies growth-related support. Collaborating with regional
ﬁnancial institutions and with central and local governments,
we are funding 13 Agriculture, Forestry, and Fisheries Sixth
Industry Fund. Through this funding, we are supporting thetransformation of these industries into growth sectors inJapan. In addition, we are providing Mizuho’s industry expertise and a comprehensive range of group capabilities to promote the vitality of regional economies.

External Environment and Mizuho’s Strong Points
Publicly offered local government bonds

58

Rank

Financial Institutions

Share

1

Mizuho Bank

12.1%

2

Nomura9.3%

3

Daiwa Securities

9.1%* Fiscal 2014
* 10 - y e a r s y n d i c a t i o nmethod weighted average(Source) Compiled by
MHBK, based on publicmaterials from Japan
Local Government
Bond Association

No. of PPP/PFI deals Mizuho is involved in
Rank

Company Name

No. of deals

1

Paciﬁc Consultants

61

2Mizuho Research Institute

37

3

PWC

35

4

The Japan Economic Research Institute35* As of April 1, 2014
(Source) Japan PFI/PPP
Association

Financial Services for Customers of Financial Institutions & Public-Sector Business Unit
Advice on ﬁnancial strategies,
proposals for investment
products, the Agriculture,
Forestry, and Fisheries Sixth
Industry Fund, etc.

Customers of ﬁnancial institutions & public-sector entities

Financial
institutions

Central ﬁnancial institutions(Life and casualty insurance companyrelated central ﬁnancial institutions, etc.)

Regional ﬁnancial companies(Regional banks, second-tierregional banks, credit unions, etc.)

Public-sector
entities

Central Government and Related Institutions(public ofﬁces, incorporated
administrative agencies, etc.)

Local governments(prefectural and city governments, etc.)

MizuhoUnderwriting public bonds,
performing services as adesignated ﬁnancial institution,
PPP/PFI, etc.

Case (1)Case (2)Business Revitalization Agreement

SME Support Agreement

Mizuho has signed a cooperation agreement with the Tajima
Bank and Yabu City, that has been designated a National Strategic Special Zone. Besides establishing an Agriculture, Forestry, and Fisheries Sixth Industry Fund, the agreement calls forhelping revitalize Yabu’s economy through such measures as
those to provide Yabu-based businesses seeking to expand
their operations with management support and assistance in
expanding marketing channels.

Mizuho and Chofu City signed the Comprehensive Cooperation Agreement related to Support for Small and Medium-Sized
Enterprises in Chofu City. The agreement calls for collaboratively utilizing the know-how of Chofu City and Mizuho topromote support for SMEs through the implementation of“Business Creation Support Field” measures, “Business Succession Field” measures, and other measures and thereby contributing to regional economic revitalization and development.

Case (3) Example of Efforts to Promote Medium- to Long-Term Growth
Supporting the Recovery from the Great East Japan Earthquake
Mizuho is working closely withentities such as regional ﬁnancial
institutions and local governmentsof the Tohoku region.
With the aim of contributing toth e re c ove r y a n d m e d iu m- tolong-term growth of the Tohoku
region, we established the Mizuho
Tohoku Industr y Development
Fund to provide equity-related

Map of the Agriculture, Forestry, andFisheries Sixth Industry Fund
Mizuho is funding and involved incapital in such forms as shareacquisitions for the fostering of
local industries. We have invested
in a total of three companies,
including a shipbuilding companyt h r o u g h t h e f u n d s o f a r. O u r
post-ear thquake revitalization
efforts aims to make the Tohoku
r e g i o n a n e w l y r e i n v i g o r a te dregion that creatively realizes its

potentials, and we have becomea founding member of the “NewTohoku” Council for Promoting
Public- and Private-Sector
Cooperation.
Launching of a new shipc o n s t r u c te d b y a n i n v e s te ecompany of the Mizuho Tohoku
Industry Development FundIn cooperation with
regional ﬁnancial institutions and regional
public entities throughout Japan, Mizuho has
i n v e s t e d i n 13 s i x t hindustr y funds for the
agriculture, forestry, andﬁshing sectors

59

Business Approaches International Banking Unit

Aiming to be the top financial group in Asia, capableof providing integrated financial services between
banking, trust banking, and securities functions
By leveraging advanced ﬁnancial technologies and know-how to provide highly specialized services, the International Banking Unit is providing integrated domestic andoverseas support for Japanese companies’ overseas business development. Utilizing
Mizuho’s global network, we are proactively working to promote transactions with
non-Japanese corporate customers in countries throughout the world.

Tatsufumi Sakai Head of International Banking Unit

Business Environment and Mizuho’s Strategies

Achievements in Fiscal 2014

In recent years, Asian economies’ high growth rates havebeen a key locomotive for the global economy, and Japaneseand other Asian banks have been elevating their presence.
Amid this environment, Mizuho is seeking to reinforce its position as a ﬁnancial institution with a top-level presence byfocusing on global ﬁnancial business stemming from the“Japan and other Asian countries” and is striving to increase
its proﬁt by simultaneously promoting both “customer-based”
and “function-based” initiatives. With respect to our customerbased initiatives, we are supporting the overseas businessexpansion of our Japanese corporate customers. For
non-Japanese blue-chip customers, we have selected
approximately 30 non-Japanese customers for focused business promotion as Super 30 customers at each of the 4 overseas regional units (total of approximately 120 customers) andare seeking to expand our business by establishing along-term relationship with these customers. On the other
hand, as our function-based initiative, we are integrating awide range of products in banking, securities, and trust banking at a high level, as well as strengthening transaction banking functions and implementing initiatives to increase deposits.
Furthermore, as part of developing our business infrastructure, we are striving to strategically expand the ofﬁce networkand enhance the business portfolio by utilizing investments
and acquisitions as required.

The International Banking Unit steadily increased its performance during ﬁscal 2014, attaining new record high levels ofoverseas gross operating proﬁt and overseas loans for theﬁfth consecutive year. We are strengthening our support
structures for Japanese customers considering new entrance
into overseas markets such as Asia and expansion of their
existing operations. For non-Japanese customers, we are
seeking to develop the Super 30 strategy by (1) expanding ourblue chip customer base (toward Super 50), (2) strengthening
the industr y sector focused approach, and (3) fur therstrengthening banking and securities cooperation. This strategy is steadily bearing fruit and as an initiative to acceleratethese activities, we acquired the North American wholesale
asset portfolio from RBS.
Regarding business infrastructure, we established theSingapore-based Asia Transaction Banking Division as ameans of offering one-stop responses to a wide range of
Asia-centered needs. In addition, we are engaging proactively
in expanding our ofﬁce network and in Asia, MHBK’s subsidiary in China opened a Changshu Sub-branch and MHBK
opened the Eastern Seaboard Branch in Thailand. In SouthAmerica, MHBK also opened the Santiago Representative
Ofﬁce in Chile. Furthermore, we are forming alliances withmajor ﬁnancial institutions and government-afﬁliated institutions worldwide.

External Environment and Mizuho’s Strong Points
Real GDP Growth of Each Region(%)
12(Figures from ﬁscal 2014 and on are forecasts)

9
6
3
0
–3

60

–6
2000

2003

2006

2009

2012

2015

Emerging andDeveloping Asia
ASEAN-5
G7
Japan* Emerging and Developing Asia: Composedof 27 countries(Source) IMF’s Global
Economic Outlook (April
2015)

Overseas Gross Proﬁts (Customer Groups)
and Loan Balance(millions of $)
4,000
3,000
2,000

2,445
126.6

3,037
144.8

3,262
159.5

3,527 (billions of $)182.0 200
863

150

790

837

1,056

100

1,121

1,474

1,598

1,608

FY2011FY2012FY2013

FY2014

657

774

827

668
1,000
0

50
0

EuropeAmericas
Asia
Loan Balance (right axis)

Aim to increase proﬁt by simultaneously promoting both “customer-based” and “function-based” initiatives
Function-based

Customer-based
NonJapanese
Customers

Strategy focusing on blue-chip core customers
Promote the deepening of business throughintegrated management between banking andsecurities functions

Japanese
Customers

Strengthen capturing businesses related tooverseas expansion
Obtain settlement business and foreign currency
deposits by capturing customer trade ﬂows

Infrastructure
Development

Cross-regional
Strengthen global
collaboration
between ofﬁces
based in Japan andelsewhere in Asia

Investment
Banking
Products

Integrate a wide range of banking, securities,
and trust products at a high level

Transaction
Banking

Strengthen transaction banking functions withan aim to capture customers’ trade ﬂows
Implement initiatives to increase deposits withan aim to strengthen the funding baseDevelop business infrastructure to support business expansion
Strategically expand the ofﬁce network and enhance the business portfolio by utilizing investments and acquisitions as required

Case (1)Case (2)Building an Even Stronger Network in Asia

Collaboration Agreement with the Australian
Trade Commission

In March 2015, MHBK opened abranch ofﬁce in the Eastern Seaboard Industrial Estate in Rayong
Province in Thailand, making it
our second ofﬁce in Thailand.

Opening Ceremony of theEastern Seaboard Branch

In March 2015, MHBK signed acollaboration agreement with theAustralian Trade Commis sion
(Austrade). Mizuho will use thisagreement to further strengthen
our support structures for customers considering new entrance into
the Australian market or expansionof their existing operations.

Case (3) Example of Efforts to Promote Medium- to Long-Term Growth
Acquisition of North American Asset Portfolio from Royal Bank of Scotland (RBS)
principally high-quality investment
grade corporations, in the wholesale market in North America andi s m a d e u p of a p p r ox i m a te l y$ 3 6.5 b i l l i o n i n l o a n c o m m i tments, including $3.2 billion ofdrawn assets.

Overseas Loan Portfolio(As of March 2015)
Americas35%

Europe16%

Approx. US$36.5 billion(Approx. US$3.2 billion)

Number ofcustomers

Approx. 200 customer groups(incl. existing customers)

Investment
grade ratio

Approx. 90%· Can improve the relationshipstatus with existing customers
and cultivate relationships withnew customers in the short term
· Aim for high RORA by increasing
non-interest income throughbanking and securities cooperation· More than 100 front, middle,
and back ofﬁce staff members
joining from RBS, including
management-level personnel* Based on MHBK’s press release on February 26, 2015

Proﬁtability of Super 30 Customers(millions of $)1,500
Asia 49%

Total$182.0 billion

Portfolio Outline*
Exposure(o/w drawn assets)Strengthen lending and bond business

In Fe b r u a r y 2015, M H B K a n d
RBS reached a deﬁnitive agreement for the acquisition by MHBK
of North American credit portfolio, f u r th e r ac c e l e rating th e
expansion of transactions with
non-Japanese global corporate
customers. The portfolio consistsof a p p rox im ate l y 20 0 l e ading
U.S. and Canadian customers,

4.19

900
600

4.0

3.81

1,200
3.47

899
627

725

3.5
3.0
2.5

300
0

(%)
4.5

Super 30 gross profits
Super 30 RORA
(right axis)

FY2012FY2013

FY20142.0

61

Business Approaches Management Support for SME Customers and Regional Revitalization

Management Support for SME Customers
SME Customer Management Support Policies
Mizuho will strive to strengthen its follow-up measures after
consultations and applications regarding ﬁnancing, the adjustment of loan conditions and other items and to proactively
offer consulting services regarding management challenges
aimed at providing problem resolution proposals, thereby
fulﬁlling its responsibilities as a ﬁnancial institution to provide
support for customers’ business expansion, business improvement, business revitalization, and other efforts based on agood understanding of customers’ perspectives.
Creation of SME Customer Management Support Systems
The specialized section to support the business revitalization
within the credit group in Mizuho works intensively to provide
support for SME customers’ business improvement and business revitalization while the Bank’s Corporate Finance Support Department and Financial Facilitation Promotion Department provide consultation and guidance to branches withrespect to collaboration with external organizations, external
specialists, and other ﬁnancial institutions.
SME Customer Management Support Initiatives
Based on a strong recognition of its role as a ﬁnancial institution, Mizuho is strengthening its capabilities for responding to
its customers’ fund procurement needs. In the course of ourmanagement-related discussions with customers and ourmanagement support efforts, we proactively offer consulting
functions tailored to meet the special needs associated witheach of our customers’ life stages.
Furthermore, MHBK partnered with Small and Medium
Enterprise Management Consultant Association (SMECA) of
each region in Japan to organize a new program in which the
SME business consultants who are members of SMECA provide support to help Mizuho’s customers draft business
improvement plans.

Responding to Customers’ Funding Needs
Mizuho proactively works to provide funding support to suchcustomers as those founding new companies, new businesses, and expanding businesses in growth ﬁelds. Representative efforts include the following.
Support for New Companies and New Businesses
MHBK and Mizuho Capital jointly syndicated the “Mizuho
Growth Support Fund,” which provides risk money for diverse
purposes, including business start-ups, mezzanine funding,and MBO-related needs.
Support for Growth Businesses and Investments in Growth Fields
We have formed the Regional Healthcare Industry Support
Fund and Medical Device Business Incubation Fund to fosterand support launches of new businesses with strong growthpotential in medical care- and nursing-related ﬁelds.
Tokyo Metropolitan Government “Special Policy Loans”
MHBK is leveraging its special know-how to utilize the Tokyo
Metropolitan Government’s “Special Policy Loan” system as ameans of promoting the development of growth SMEs andhelping them overcome management challenges.

Regional Revitalization Initiatives
Utilizing its network of branches in each of Japan’s prefectures, Mizuho is striving to promote the revitalization of regional economies and industries by providing its customers withsmooth supplies of funding, engaging in management consultations, and supplying various other kinds of management
support as well as through such initiatives as those to invest in
the Mizuho Tohoku Industry Development Fund and the Agriculture, Forestry, and Fisheries Sixth Industry Fund.

Finance Facilitation and Management
Guarantee Guideline Initiatives
Finance Facilitation Initiatives
Earnestly determined to fulﬁll a ﬁnancial institution’s social role

SME Customers
Consulting
External institutions / external experts

MHFG

Other ﬁnancial institutions, etc.

SME Management Consultants

Tax accountants / accountants /lawyers

Group companies(real-estate/leasing/think tank/etc.)

Divisions in charge ofsolution support• Business matching• M&A• Support for overseas
business launches• Syndicated loans• Business inheritance, etc.

Financial Facilitation
Promotion Department• Guidance for Credit Groupand branches

Corporate Finance Support
Department• Promoting support related
to management/consulting/guidance, etc.

62

Collaboration

Consulting ﬁrms

Support

Regional Economy Vitalization
Corporation of Japan

Specialized section to support
the business revitalization

SME Business Rehabilitation
Support Co-operative

Branches and Corporate Banking
DivisionsInitiatives

activities throughout the Group. Besides establishing specialized ﬁnancing facilitation management units and complaint
reception units, we have appointed “Finance Facilitation Promotion Managers” at each domestic ofﬁce.

of facilitating ﬁnance, Mizuho works to promote facilitating
ﬁnance in accordance with the Group’s fundamental policies
by appropriately responding to such customer requests as
those for new loans and loan condition adjustments while also
striving to utilize consulting functions.

Initiatives Related to “Guidelines for Management Guarantee”
Having created systems to promote appropriate responses tocustomer consultations and other interactions with customers, Mizuho is earnestly striving to meet customer needs inaccordance with the “Guidelines for Management Guarantee.”

Organization and Systems
Mizuho has appointed “Finance Facilitation Managers” to be
responsible for the promotion of facilitating ﬁnance as a meansof undertaking uniﬁed ﬁnancing facilitation management

Management Support Efforts for SME Customers
Utilizing Consulting Functions
Besides implementing support for customers
through the use of such tools as ﬁnancial diagnosis reports, we strive to provide solutions
that utilize such MHBK functions as thoserelated to real estate and business inheritance and such MHRI functions as thoserelated to research studies and consulting.
During ﬁscal 2014, we cooperated with
the Small and Medium Enterprise Agency,
the Organization for Small and Medium
Enterprises and Regional Innovation, andvarious small and medium enterprise consultant associations to organize Seminars
on the Utilization of Subsidies Etc. for Smalland Medium Enterprises for SME customers
facing such management challenges as
those associated with new corporate andb u s i n e s s e s e s t a b l i s h m e n t s, b u s i n e s s
improvement, and business inheritance.
Seminal sessions were held in Tokyo andOsaka, and approximately 270 customers
participated in them.

Regional Revitalization Efforts
Fostering the Development of Tohoku Region Automobile-Related Enterprises
In cooperation with the Tohoku Bureau of
Economy, Trade and Industry as well as theJapan Industrial Location Center, MHBK
established the “Tohoku Intercompany Teamwork Platform” to develop automobile-related
enterprises in the Tohoku region. The platform is helping to strengthen the competitive
power of automobile-related enterprises in
the Tohoku region while also meeting suchneeds as those of Chubu region companies to reduce manufacturing costs anddelivery costs.

Advisory support
(2)

(1)

TohokuIntercompany
Teamwork Platform

Companies outside
Tohoku(1)(3)

Tohokucompanies(1) A p p l i c ati o n fo r p a r ti c i p ati o n,registration of corporate information(2) Business matching by means ofadvisory support* and other advice
based on registered information*Such support is obtained by meansof conferences with former automobile manufacturer employees andothers with relevant expertise.
(3) One-on-one matching

Overview of the Tohoku Intercompany Teamwork Platform

Efforts Based on Business Viability Evaluations
Proactive Measures to Fund New Child Care Establishments
Mizuho is proactively working to provide
funding for the establishment of new childcare facilities.
Mizuho assiduously undertakes markets t u d i e s b a s e d o n c o o p e r a ti o n a m o n g
MHBK’s Industr y Research Division andother group research units together withventure capital ﬁrms and shares strategic
information with child care facility operators, seeking to evaluate the child carefacility operators’ business viability andappropriateness. As a result, we were able
to provide the funding needed to help establish several dozens of new child care facilities during ﬁscal 2014.
By continuing to provide funding in thisway g o i n g fo r wa rd, M i zu h o i nte n d s tosustain its support for augmented measures
to meet social needs along with its support
for the corporate growth of companies meeting such needs.

63

64

Strengthening Management Foundations

65

Strengthening Management Foundations
Corporate Governance

RAF

Risk Management

Compliance

IT Strategy

Measures to Form a Common Culture throughout the Group

Corporate Governance
Basic Policy regarding
Corporate Governance Systemcompliance with Japanese and foreign laws and regulations
as a ﬁnancial group expanding across the globe.

The basic policy regarding corporate governance system of
MHFG, the holding company, is shown below:(1) Secure the effectiveness of corporate governance byensuring the separation of supervision and management
and making supervision of the management such as theexecution of duties, etc., by executive ofﬁcers the primary
focus of the Board of Directors.
(2) Make it possible for the management to make swift andﬂexible decisions and realize expeditious corporate management by the Board of Directors’ delegating decisions
on business execution to executive ofﬁcers.
(3) Utilize committees, etc., comprising mainly of outside
directors who are independent from the managementof Mizuho, and secure transparency and fairness indecision-making processes and the effective supervisionof the management.
(4) In the course of designing the organizations, etc., comprising the corporate governance system that realizes mattersset out in items (1) through (3) above, MHFG is to actively
adopt operations and practices that are recommended ata global level regarding corporate governance as well as

Corporate Governance Structure
We have adopted a Company with Three Committees structure with the belief that, under the current legal system, aCompany with Three Committees is the most effective as asystem to realize our fundamental perspectives regarding ourcorporate governance system.

Supervision
Board of Directors
The main roles of the Board of Directors of MHFG are making
decisions on business execution such as basic management
policies, which are legally matters to be determined solely by
the Board of Directors, and supervising the execution ofduties by directors and executive ofﬁcers. The Board of Directors, in principle, delegate to our President & Executive Ofﬁcer, who is also the Group CEO, decisions on business execution (excluding matters that are legally required to be
determined solely by the Board of Directors), for the purposeof realizing swift and ﬂexible decision-making and expeditious

MHFG’s Corporate Governance Structure
General Meeting of Shareholders

Nominating Committee
Compensation Committee

Board of Directors

Audit Committee

Outside Directors (all the members)

Human Resources Review Meeting

Outside Directors, Internal Directors(Non-Executive Directors arein the majority)

Audit

Supervision

Audit

Non-Executive Directors(Outside Directors arein the majority)

Risk Committee
External Director Session

Executive Management Committee

Internal Audit Committee

CEO (Group CEO)

Executive Ofﬁcers

Group Strategy Conferences

Business Policy Committees

Unit, Group, etc.

66

Includes outside advisors

Internal Audit GroupHuman Resources Strategy

Social Contribution Activities

corporate management and strengthening the supervision of
directors and executive ofﬁcers by the Board of Directors.
In light of the role of the Board of Directors to supervise
management, the majority of the members of the Board of
Directors consist of outside directors and internal directors
who do not concurrently serve as persons performing executive roles (“Internal Non-Executive Directors,” and together
with outside directors, “Non-Executive Directors”). At least six
directors shall be outside directors.
Composition of the Board of Directors (as of June 23, 2015)

Directors received reports on such topics as the execution ofmanagement strategies, business performance and otherimportant issues.
Nominating Committee
The Nominating Committee of MHFG determines the contents
of proposals regarding the appointment and dismissal of
directors of MHFG to be submitted to the general meeting ofshareholders and exercises the approval rights held by MHFG
with respect to the appointment and dismissal of directors ofeach of the Core Subsidiaries (MHBK, MHTB, and MHSC)
and exercises the approval rights held by MHFG with respect
to the appointment and removal of representative directors
and senior directors of the Core Subsidiaries.

Chairman

Hiroko Ota (Outside Director)

Percentage of
Non-Executive Directors

62% (8 out of 13)

Percentage of
Outside Directors

How it is operated•Regarding
appointment of directors and other issues of

46% (6 out of 13)

MHFG and the Core Subsidiaries, the President & CEO drafted proposals in accordance with the Nominating Committee
Chairman’s instructions and the Nominating Committee
engaged in repeated deliberations regarding those proposals.
During this process, the Human Resources Review Meeting(see page 68) undertook deliberations based on considerationof objective indicators of external evaluations, specialized
expertise fostered through work experience, and other factors; undertook such measures as those to ensure opportunities to obtain information from individual personal interviews
and reports presented by ofﬁcers to the Board of Directors;
and thereby has striven to realize a highly transparent andobjective process of appointing directors by mainly outside
directors, ensuring the assignment of the appropriate persons
in appropriate positions.
In ﬁscal 2014, the Nominating Committee held 7 meetingsand passed resolutions concerning such matters as the determination of MHFG director candidates and the appointment of
the directors of Core Subsidiaries.

The Chairman of the Board of Directors shall, in principle, bean outside director in light of the role of the Board of Directors
to supervise management. Currently, an outside director
serves as the Chairman of the Board of Directors.
Each outside director has the following qualiﬁcations. He or
she has deep insight and knowledge and extensive experience in areas such as corporate management, risk management, compliance with laws and regulations, crisis management, ﬁnancial accounting, internal control, macroeconomic
policy, organizational and cultural reform, or global management. Each outside director also has the ability to get an overview and understanding of the overall management of Mizuho,
the ability to grasp essential issues and risks, and the ability toappropriately interview management and express opinions
to and persuade them. In addition, all the outside directors
satisfy the Independence Standards of Outside Directorsof MHFG.
How it is operated•Regarding
the Board of Directors, the Chairman of the Boardof Directors plays a central role in narrowing down the agendas’ to enable concentration on truly necessary proposals
and, regarding proposals associated with core management
issues, promotes comprehensive discussions of essential
points in a free and vigorous manner with the inclusion ofhigh-quality opinions and suggestions from outside directors.
Regarding the Board of Directors’ operations, initiatives arebeing taken to prepare materials that clearly articulate issues
and challenges and to ensure that the delivery of such materials and explanations is implemented prior to meetings.
In ﬁscal 2014, the Board of Directors held 16 meetings todeliberate and pass resolutions about the ﬁscal 2015 businessplan and other issues. In addition, to realize such objectives
as providing directors with a good understanding of the overall management from a panoramic perspective, the Board ofCompensation Committee
The Compensation Committee of MHFG determines the compensation for each individual director and executive ofﬁcer of
MHFG, exercises the approval rights held by MHFG regarding
compensation of each individual director of the Core Subsidiaries, and determines the basic policies and compensation
system for directors and executive ofﬁcers of MHFG and theCore Subsidiaries.
How it is operated•Consideringsuch factors as MHFG’s medium- to long-termbusiness performance and economic and societal environment, the President & CEO drafted proposals with respect tothe compensation policy based on the role and responsibility
assigned to and the performance of each of the Directors, inaccordance with the Compensation Committee Chairman’s
instructions, and the Compensation Committee engaged in
repeated deliberations regarding those proposals. Based on a

67

Strengthening Management Foundations
Corporate Governance

RAF

Risk Management

Compliancehighly transparent and objective consideration process by
mainly outside directors and in light of sound incentivization forsustainable growth and restraint on excessive risk taking, performance payments and performance-based stock compensation systems were introduced to more appropriately reﬂect eachdirector’s performance, the ratios of variable compensation toﬁxed compensation were determined, and other measures weretaken to create a compensation system that gives due consideration to value creation on behalf of diverse stakeholders.
In ﬁscal 2014, the Compensation Committee held 6 meetings and passed resolutions concerning such matters as thepolicy for determination of the executive compensation, thedetermination of compensation for individual MHFG’s directors and executive ofﬁcers, as deﬁned in the Companies Act,and the approval of compensation for individual directors of
the Core Subsidiaries.
Audit Committee
The Audit Committee of MHFG audits the execution of duties
by the directors and executive ofﬁcers, monitors and inspects
the establishment and management of the internal control
system of MHFG and its subsidiaries, monitors and inspects
the condition of the execution of duties with respect to corporate management of subsidiaries and others by executiveofﬁcers, and prepares audit reports.
In addition, the Audit Committee audits the legality andappropriateness of the execution of duties by directors andexecutive ofﬁcers and executes its duties through effective
coordination with the Internal Audit Group, etc., on the premise of the establishment and management of an internal control system of MHFG and its subsidiaries. The members of the
Audit Committee who have been authorized to collect reports
and investigate business property shall directly execute auditsof directors, executive ofﬁcers and the management level ofeach department and subsidiary.
Given that it is necessary for the Audit Committee to gather

IT Strategy

information through internal directors who are familiar with theﬁnancial business and related regulations, share information
among the Audit Committee, and to have sufﬁcient coordination with internal control departments, we in principle appoint
one or two Internal Non-Executive Directors as full-time members of the Audit Committee.
How it is operated•Regarding
items necessary for audits of directors’ and execu-

tive ofﬁcers’ performance of duties, the Audit Committee
obtained timely and appropriate reports and explanations
from directors, executive ofﬁcers, as deﬁned in the Companies Act, employees, and the accounting auditor (hereinafter,“directors, etc.”) and gave instructions and recommendations
when necessar y. In addition, the Audit Committee has
ensured the effectiveness of its audits by conﬁrming the processes and contents of decision making by the business execution division through such measures by full-time Audit
Committee members as those to arrange for the attendance
at important meetings held by the business execution division,
examine impor tant decision-related documents, obtainreports from directors, etc., and coordinate operations with
the Internal Audit Group and other group units.
In ﬁscal 2014, the Audit Committee held 14 meetings andpassed resolutions concerning such matters as the formulation of audit plans and determination of auditing standards
and also conﬁrmed such matters as the situation regarding
the execution of duties by directors and by executive ofﬁcers,
as deﬁned in the Companies Act, etc.
MHFG has established committees and other organizations on a
voluntary basis in addition to the above three legally-requiredcommittees as set forth below:
Human Resources Review Meeting
We established the Human Resources Review Meeting thatconsists of the President & Executive Ofﬁcer and outside

Composition of the Legally-required Three Committees (as of June 23, 2015)
Nominating Committee
ChairmanCommittee
members

68

Measures to Form a Common Culture throughout the Group

Outside: outside directors

Compensation Committee

Non-executive: Internal Non-Executive Directors

Audit Committee

OutsideMitsuo Ohashi

OutsideTatsuo Kainaka

Non-executive

Hideyuki Takahashi

OutsideTakashi Kawamura

OutsideTetsuo Seki

OutsideTetsuo Seki

OutsideTatsuo Kainaka

OutsideTakashi Kawamura

OutsideTatsuo Kainaka

OutsideHiroko Ota

OutsideHirotake Abe

Non-executive

Nobukatsu Funaki

Human Resources Strategy

Social Contribution Activities

directors who serve as members of the Nominating Committee and Compensation Committee as a deliberative body thatmainly conducts the deliberation of proposals to appoint
executive ofﬁcers, as deﬁned in the Companies Act, andexecutive ofﬁcers, as deﬁned in our internal regulations, withtitle of MHFG and executive ofﬁcers, as deﬁned in our internal
regulations, with title of Core Subsidiaries and assessment ofexecutive ofﬁcers.
Risk Committee
We established the Risk Committee that in principle fully consists of Non-Executive Directors or external experts as anadvisory body that mainly advises the Board of Directors withrespect to the supervision of the determination and the implementation relating to risk governance.
External Director Session
We established the External Director Session that consists ofall outside directors and the President & Executive Ofﬁcer as aforum for free discussions with an aim to deepen outside
directors’ understanding of our group and share the top management’s awareness of issues through communication
among directors.

Execution of Duties
Executive Officers
Executive ofﬁcers of MHFG take charge making decisions on
business execution delegated by a resolution of the Board of
Directors and implementing the business execution of MHFG.
We appoint the Group CEO and, in principle, the following(1) and (2) as executive ofﬁcers based on the policy that it isnecessar y to appoint as executive of ﬁcers people who
assume a managing role. (1) Persons with the right to give
instructions to Unit Heads, Group Heads, or the Head of Internal Audit to the extent that they have been so instructed by
the Group CEO; and (2) All Unit Heads, Group Heads, and theHead of Internal Audit.
While the President & Executive Ofﬁcer is responsible forthe business execution of MHFG, from the perspective of providing a checks and balances function and ensuring sufﬁcientconsideration in connection with decision-making, in principle,
determination of delegated matters relating to making decisions on business execution following the transition to a Company with Three Committees structure shall be based on
deliberation of the Executive Management Committee, which
serves as an advisory body for the President & Executive Ofﬁcer (however, excluding matters ensured to be deliberated and discussed under sufﬁcient checks and balances by
Non-Executive Directors such as through the Nominating
Committee, Compensation Committee and Human Resources Review Meeting).
The Executive Management Committee discusses importantmatters concerning the execution of business operations asnecessary. The business policy committees and group strategy
conferences have been established to comprehensively
discuss and coordinate cross-sectional issues and importantmatters in terms of group business strategy. The business
policy committees meetings and group strategy conferences
are held as necessary.
Group Operational Structure centered on the Holding Company
With the aim of promoting the implementation of rapid andintegrated group strategy and planning, MHFG has moved toa group operational structure* under which it determines andpromotes strategy and plans across group-wide banking,trust banking, securities and other business areas. Speciﬁcally, we established 10 units which are responsible for businessstrategy implementation across group-wide business areas.
* For group operational structure, refer to Special Features on page 24.

Internal Audit Function and Others
The Internal Audit Committee fulﬁlls an internal audit function
under the President & Executive Ofﬁcer. The committee
discusses and determines important matters concerninginternal audit on the basis of the basic policy determined by
the board and reports decisions made by the committee andimportant matters to the board.
To ensure independence of the internal audit function fromthe audited sections, we separate the Internal Audit Group
from the groups which it audits and establish it as an independent group in its own right under the control of the Internal
Audit Committee.
External experts in their ﬁeld (consisting at present of one
lawyer and one CPA) are also on the Internal Audit Committee
to strengthen the specialist nature and impartiality of thecommittee.
The internal audit infrastructure MHFG has established is
as follows: MHFG has set up an Internal Audit Division to carryout internal audits based on the basic audit policies and theinternal audit regulations determined by the Board of Directors. It also checks the internal control structure of the various
companies on the basis of the reports it receives from the
major group companies of the results of internal audits andproblems and issues that have been investigated by them.
Thus, all information on the status of the major group companies’ internal audits is held and controlled by MHFG’s Internal
Audit Division.
The results of both MHFG’s and the major group companies’ internal audits are reported to the Internal Audit Committee on a regular basis and at other times as necessary by thehead of the Internal Audit Group.

69

Strengthening Management Foundations
Corporate Governance

RAF

Risk Management

Compliance

IT Strategy

Measures to Form a Common Culture throughout the Group

Risk Appetite Framework (RAF)
The Purpose of Introducing
Risk Appetite Framework
Mizuho’s Risk Appetite Framework (R AF ) is a common
intra-group framework designed to promote discussion,understanding, and evaluation of the level of risk Mizuho iswilling to assume.
The purpose of our RAF is to maximize our corporate value
and fulﬁll our social responsibilities by taking risk and providing solution based on our customers’ actual needs, establishing our competitive advantage against our peers.
Speciﬁcally, we have determined our business strategies
and measures as well as our resource allocation and ﬁnancial
plans based on our risk appetite. By integrating businessstrategy, ﬁnancial strategy and risk taking in this manner we
aim to balance our risk-return.

Risk Appetite Framework Control Structure
The RAF is the cornerstone of Mizuho’s risk governance, andthe Board of Directors is responsible for determining our risk
appetites and other fundamental matters including the governance structure of RAF and the documentation of the Risk
Appetite Statement (RAS).
In addition, the Risk Committee (comprised of NonExecutive Directors and external experts), which is an advisory
body to the Board of Directors, advises the Board of Directors
as well as makes proposals to the management.
At the management level, the Management Governance

Enhancement Committee deliberates issues related to theenhancement and establishment of our RAF. Under the leadership of the Group CEO, Group CRO *1, Group CFO *2 and theGroup CSO *3 will take the initiative to integrate business strategy, ﬁnancial strategy and risk management. In addition thehead of each line of business are responsible for managing
business operations in accordance with our risk appetite, andthey also attend the committee.
The Risk Management Committee, chaired by the Group
CRO, monitors the operation of the RAF during the ﬁscal year.
The group CRO may directly present reports on matters
discussed at the Risk Management Committee to the Boardof Directors and the Risk Committee.
The Balance Sheet Management Committee, chaired by
the Group CFO, has the task of formulating and promoting theimplementation of balance sheet-centered strategies related
to risk control and risk taking.
*1. Head of Risk Management Group*2. Head of Financial Control & Accounting Group*3. Head of Strategic Planning Group

Formulation and Monitoring of Risk Appetite
When formulating our business plan, we will ﬁrst discussbusiness areas to focus on and the level of risk taking
required in realizing our business strategy and ﬁnancial
strategy.
Simultaneously, we will discuss external risk factors related
to our business such as the global economic environment and

MHFG’s Risk Appetite Framework Control Structure

Board of Directors
Supervision
President & CEO

Audit Committee• Audits the execution of duties by the directors and the management regarding RAF

Risk Committee• Advises the Board of Directors and makes proposals to the management regarding risk governanceManagement Committee

Management

Management Governance Enhancement Committee[Chairperson: Group CEO]Risk Management Committee[Chairperson: Group CRO]
Balance Sheet Management Committee[Chairperson: Group CFO]

70

• Determines basic matters regarding RAF and RAS• Supervises business execution by the management based on the above determinations

Group CEO / Group CRO / Group CFO / Group CSO

Head of Each Unit / Head of Each Group• Formulates Risk Appetite Policy• Establishes Risk Appetite Metrics and level• Formulates RAS• Conducts business operations consistent
with the risk appetite• Embed sound risk culture to each line of business• Monitors the operation of RAF• Formulates and promotes balance sheet management-centered strategies
related to risk control and risk taking

Human Resources Strategy

Social Contribution Activities

regulatory developments. In particular, several risk scenarios
related to global economic environments will be established
for the purpose of running a stress test. Stress test will enable
us to capture the effect of stress events on our earnings andcapital. The results of stress test will be analyzed to makesure that our business plan aligns with our risk appetite.
Mizuho’s risk appetite consists of a Risk Appetite Policythat serves as the fundamental policy regarding our risktaking activity and Risk Appetite Metrics that serve as meansof quantif ying the level of risk taking based on the Risk
Appetite Policy.
The Risk Appetite Policy includes three main elements—auniversal risk-taking domain encompassing the risk taking
required to maximize Mizuho’s corporate value and fulﬁll
Mizuho’s social responsibilities, a medium-term objective
based on the medium-term business plan and changes in thebusiness environment, and a single-year objective based onﬁscal year business plan.
R is k A p p eti te M etr ic s a re d ete r m in e d by se l e c tingappropriate indices for measuring capital, risk-return, liquidity
etc., and then the level of risk (risk appetite level) we are willingto assume is established taking into account our businessand ﬁnancial strategy.
Group level risk appetite is cascaded down into each line ofbusiness. Each line of business formulates their own businessplans and manages their operations based on reference toMizuho’s group-wide risk appetite.
In order to ensure that business is conducted within ourestablished risk appetite, regular monitoring activity isundertaken during the year. Monitoring elements include
whether external economic and market condition requirechange in our risk scenario or not, whether business strategy
is pursued within the risk appetite policy or not and ourfor ward looking risk proﬁle in comparison with our risk
appetite.
A sound and healthy risk culture is vital for ef fective
implementation of RAF within the Group. Accordingly, we are
striving to embed a sound risk culture by promoting risk
awarene ss and elevating capabilitie s in adapting andresponding to risks.

Image of Mizuho’s Formulation of Risk Appetite

Universal Risk-taking Domain

Mizuho’s
Risk Appetite Policy

Medium-term Objective

Strategies and Measures
Single-year Objective

Mizuho’s Risk Appetite Metrics
CapitalRisk-return

Stress Test

Resource Allocation

Liquidity

Profit Plan
Risk Appetite Metrics for Each Line of Business
CapitalRisk-return

Liquidity

Risk Culture

71

Strengthening Management Foundations
Corporate Governance

RAF

Risk Management

Compliance

IT Strategy

Measures to Form a Common Culture throughout the Group

Risk Management
Basic Approach
We recognize the conducting of operations tailored to various
types of risk and managing such risks as a key issue relating tooverall management. In order to implement our business strategy while maintaining our ﬁnancial stability, we maintain comprehensive risk management and control measures.
MHFG maintains basic policies for risk management established by its Board of Directors that are applicable to theentire Group. These policies clearly deﬁne the kinds of risks to
be managed, set forth the organizational structure and provide for the human resources training necessary for appropriate levels of risk management. The policies also provide for

audits to measure the effectiveness and suitability of the risk
management structure. In line with these basic policies, we
maintain various measures to strengthen and enhance thesophistication of our risk management system.

Risk Management Structure
Each of our subsidiaries adopts appropriate risk management
measures for its business based on the size and nature of its
risk exposures, while MHFG controls risk management for theGroup as a whole.
At MHFG, the Risk Management Committee chaired by theGroup Chief Risk Ofﬁcer (Group CRO) provides integrated

MHFG

Board of Directors

Supervision,
Board of Directors
Audit

Audit Committee

Strategic Planning
Division

Corporate Communications
Division

Regulatory Change
Risk

Reputational Risk

Administration
Division

Global Career Management
DivisionGroup Human Resources
Division

Legal Division

Operations Planning
Division

Operational Risk
Tangible Asset Risk

Human Resources
Risk

Human Resources
Risk

Legal Risk

Operations Risk

Information Technology
Risk

Credit Risk

Operational Risk

Market Risk, Liquidity Risk

Credit Risk

MHSC

Board of Directors
President & CEO

Executive Management Committee

Ofﬁcers responsible for risk management(CRO, etc.)

Business Policy Committees

Departments responsible for risk management
Corporate Planning
Department

Administration
Department

Human Resources
Department

Legal & Trust Credit
Department

Operations Planning
Department

Credit Risk Management
Department

IT & Systems Planning
Department

Risk Management
Department
Comprehensive Risk

Operational Risk
Reputational Risk

Tangible Asset Risk

Regulatory Change
Risk

Human Resources
Risk

Legal Risk

Operations Risk

Information Technology
Risk

Credit Risk

Operational Risk

Market Risk, Liquidity Risk

Major group companies otherthan MHBK, MHTB and MHSC

Report the risk management situation
Submit applications concerning risk management

Reputational Risk

Regulatory Change Risk

Tangible Asset Risk

Human Resources Risk

Human Resources Risk

Legal Risk

Operations Risk

Information Technology Risk

Credit Risk

Operational Risk

Market Risk, Liquidity Risk

Credit Risk

72

Operational Risk

Divisions responsible for risk management

Comprehensive Risk

MHTB

Corporate Communications Division

Strategic Planning Division

Administration Division

Global Career Management Division

Group Human Resources Division

Legal Division

Operations Planning Division

IT & Systems Planning Division

Credit Risk Management Division

Risk Management Division
Comprehensive Risk

Business Policy Committees

IT & Systems Planning
Division

Divisions responsible for risk management

Ofﬁcers responsible for risk management(CRO, etc.)

Credit Risk Management
DivisionOfﬁcers responsible forrisk management(Group CRO, etc.)

Executive Management Committee

Risk Management
Division

Business Policy Committees(Risk Management
Committee, etc.)

MHBK

President & Group CEO(Group CEO)Set risk management policies
Give instructions and approval concerning risk management

Manage- Executive Management
Committee
mentPresident & CEO

Human Resources Strategy

Social Contribution Activities

monitoring and management of the overall risk for the Group.
The Group CRO reports the risk management situation to theBoard of Directors, the Audit Committee, the Executive Management Committee and the President & Group CEO, on aregular basis and as needed. MHFG regularly receives reports
and applications concerning the risk management situationfrom our core group companies and gives them appropriate
instructions concerning risk management.
Our core group companies each maintains its own systems
for managing various types of risk, regularly receiving reportson the status of risk at their respective subsidiaries, and gives
them appropriate instructions concerning risk management.

General Concept of Risk Management
Basic Approach
We classify our risk exposures according to the various kindsof risk, including credit risk, market risk, liquidity risk andoperational risk, and manage each type of risk according to
its characteristics.
In addition to managing each type of risk individually, we
have established a risk management structure to identify andevaluate overall risk and, where necessary, to devise appropriate responses to keep risk within limits that are manageriallyacceptable in both qualitative and quantitative terms.
In line with the basic policies relating to overall risk management laid down by MHFG, companies within the Groupidentify risk broadly and take a proactive and sophisticatedapproach to risk management, including methodologies for
operations that involve exposures to multiple categories of risksuch as settlement and trust businesses.

within the Group’s ﬁnancial base in accordance with the risk
capital allocation framework.
More speciﬁcally, we allocate risk capital to our coregroup companies, including their respective subsidiaries, tocontrol risk within the limits set for each company. We also
control risk within managerially acceptable limits by working toensure that the overall risk we hold on a consolidated basis
does not exceed shareholders’ equity and other measures ofﬁnancial strength. To ensure the ongoing ﬁnancial health of
MHFG and our core group companies, we regularly monitor
the manner in which risk capital is being used in order toobtain a proper grasp of the risk proﬁle within this framework.
Reports are also submitted to the Board of Directors andother committees of each company. Risk capital is allocatedto MHBK, MHTB and MHSC by risk category, and is further
allocated within their respective business units based on
established frameworks.

Risk Capital Allocation
We endeavor to obtain a clear grasp of the Group’s overall risk
exposure and have implemented measures to keep such risks

Risk Category

Definition

Credit risk

The Group’s exposure to the risk of losses that may be incurred due to a decline in, or total loss of, the value of assets(including off-balance-sheet instruments), as a result of deterioration in obligors’ ﬁnancial position.

Market risk

The risk of losses incurred by the Group due to ﬂuctuations in interest rates, stock prices and foreign exchange rates. Ourdeﬁnition includes the risk of losses incurred when it becomes impossible to execute transactions in the market becauseof market confusion or losses arising from transactions at prices that are signiﬁcantly less favorable than usual.

Liquidity risk

The risk of losses arising from funding difﬁculties due to a deterioration in our ﬁnancial position that makes it difﬁcult for us
to raise necessary funds or that forces us to raise funds at signiﬁcantly higher interest rates than usual.

Operational risk

The risk of losses that the Group may incur resulting from inadequate or failed internal processes, people and systems, orfrom external events. Operational risk consists of several components such as technology risk, operations risk, etc.
Risk Management Structure on page 106 of the Appendix for speciﬁc components of operational risk.

73

Strengthening Management Foundations
Corporate Governance

RAF

Risk Management

Compliance

IT Strategy

Measures to Form a Common Culture throughout the Group

Compliance
Basic Compliance Policy
As the leading Japanese ﬁnancial services group with a global
presence and a broad customer base, we remain consciousof the importance of our social responsibilities and public mission at all times. We deﬁne compliance as “the strict observance of all laws and regulations and the pursuit of fair andhonest corporate activities that conform to the norms accepted by society” and view ongoing compliance as one of thebasic principles of sound business management. Each of ourgroup companies maintains its own compliance structure inline with the basic policies established by MHFG.

the compliance administrator at each unit reviews the statusof compliance.
MHFG has established the Internal Controls and Audit
Hotline*1, a system designed for obtaining concerns regarding
questionable accounting or auditing matters from in and outside the company.
As shown in the diagram below, MHFG monitors the statusof compliance of the group through reports submitted by ourcore group companies and adopts appropriate responses
when necessary. Compliance at subsidiaries of our coregroup companies is monitored and managed by their respective parent.

Compliance Structure*1. Internal Controls and Audit Hotline: Refer to “Contacts regarding Compliance” on page 94 of the Appendix.

The chief executive ofﬁcer of MHFG, MHBK, MHTB, and
MHSC each generally oversees compliance matters of therespective company, and the chief executive ofﬁcer, etc. alsohead their respective Compliance Committees at which
important matters concerning compliance are discussed. The
four companies also have individual compliance divisions
under a chief compliance ofﬁcer. These divisions are responsible for compliance planning and implementation and control
overall compliance management at the respective companies.
At the level of each organizational unit (such as branches anddivisions) at the four companies, the head of the unit is
responsible for guidance and implementation related to compliance matters within such unit, and the compliance ofﬁcer orCompliance Structure
MHFG
Supervision, Audit

Board of Directors

Audit Committee

President & CEO (Group CEO)

Executive Management Committee

Management

Compliance Committee(Chairman: President & CEO)Group Chief Compliance Ofﬁcer (Group CCO)
(Compliance Division)
Every organizational unit
Compliance Ofﬁcer /Compliance Administrator

Head of each unit

Compliance Activities“Mizuho Code of Conduct” and “Compliance Manual”
We have established the Mizuho Code of Conduct, which sets
forth clear and concrete standards of ethical behavior. Furthermore, each of our group companies has also prepared acompliance manual, which serves as a practical guidebook
for rigorous compliance enforcement and clariﬁes the laws
and regulations that the group companies must observe inpursuing their business activities and the compliance activities
they are required to follow.
Enforcing Compliance
The Mizuho Code of Conduct is distributed to all directors,
senior management and employees of the group so that they
are well aware of its content and act accordingly. We also
conduct compliance training for directors, senior management and employees so that they are fully acquainted with thecontents of the compliance manual. In addition, we monitor
the status of compliance levels through self assessments conducted by individual organizational units and monitoring conducted by the compliance division of each company.
Putting PDCA into PracticeEvery ﬁscal year, each of our group companies establishes acompliance program, which contains concrete measures forcompliance enforcement such as measures related to the
management of the compliance framework, training andassessments. Progress regarding the implementation of thecompliance program is monitored every six months.

Implementing Group Strategies
MHBK, MHTB, MHSC and other major group companies

Subsidiaries of the above group companies

74

The integrated strategy of banking, trust banking, and securities functions that we are implementing includes progressively
increasing the sophistication of compliance divisions’ compliance management systems to enable the expansion anddeepening of business involving the collaboration of banking,Human Resources Strategy

Social Contribution Activities

trust banking, and securities functions and the smooth progress of increasingly diverse and complex projects.

Approaches to the Financial Alternative
Dispute Resolution (ADR) System
In order to deal expeditiously, fairly and appropriately withcomplaints, etc., from customers, MHBK and MHTB haveconcluded contracts with dispute resolution institutions *2
respectively.
*2. For more information on dispute resolution institutions, refer to “Contacts regarding Compliance” on page 94 of the Appendix.

Information Management
Along with the evolution of the advanced informationtelecommunication society, use of information increases
exponentially and further attention is paid to protection of personal information. For these reasons, we, as providers of comprehensive ﬁnancial services in Japan and abroad, believe thatappropriate protection and use of informational resources are
extremely important issues. We have clariﬁed the management system, various safety management measures andmanagement methods for information security management
as well as fully communicate them to every employee, thereby
appropriately protecting informational assets and strengthening our information security management system.

Efforts to Prevent Money Laundering, Etc.
In response to an increase in international demands foranti-money laundering and countering terrorist ﬁnancing measures in recent years, the Group is positioning the implementation of measures for preventing money laundering, terrorist
ﬁnancing, and other ﬁnancial crimes as a top management
priority. We are striving to prevent ﬁnancial crimes throughsuch activities as those to ensure that each branch thoroughly
conﬁrms requisite items based on applicable laws and regulations when new accounts are opened and through the establishment of specialized units that undertake the systematic
monitoring of transactions that are improper, suspicious, orotherwise potentially problematic.

the CEO or a president), and these committees take action tosever relations with anti-social elements through a group-wide
cooperation.
Furthermore, major group companies maintain centralized
divisions or appoint an ofﬁcer to manage anti-social element
issues and make efforts to maintain effective frameworks, forexample, by establishing a manual on how to manage such
issues and conducting training sessions. If required for specific cases, we consult with third party experts and authorities
and handle the cases.

Maintaining Sound and Normal Relations with
Political and Governmental Administrative Entities
The Group has relations with numerous countries throughout
the world including Japan in connection with various occasions. With respect to laws and regulations associated with
conducting business operations, the use of public services
necessary for business operations, the loaning of funds tocountries and national enterprises, the procurement of funds
from central banks, and other occasions, the Group complies
with national laws and regulations in each and every one ofthese occasions and maintains sound and normal relationships with each country’s government entities and politicianswith jurisdiction over the Group’s businesses.
The Group is committed to a fundamental policy of maintaining sound and transparent relationships with political andgovernmental administrative entities and persons, and it does
not take any actions that could be construed as entering into
“cozy” or collusive relationships with respect to such entities
and persons. Within the Group’s compliance manual, this fundamental policy and other points to be considered are clearly
noted. Through compliance training courses and other measures, the Group is working to ensure that all senior management and employees are thoroughly familiar with this policy,
and it is simultaneously taking measures to rigorously monitor
and manage the implementation of this policy.

Severing Transactions with Anti-Social Elements
In order to prevent anti-social elements from inﬂuencing corporate management and to avoid any harm caused byanti-social elements, MHFG established the “Mizuho Codeof Conduct” which sets out a policy to sever any ties with
anti-social elements that threaten the rule of law, public orderand safety.
MHFG, MHBK, MHTB and MHSC have each establishedan Anti-Social Elements Elimination Committee (chaired by75

Strengthening Management Foundations
Corporate Governance

RAF

Risk Management

Compliance

IT Strategy

Measures to Form a Common Culture throughout the GroupIT Strategy
Internet banking, and other businesses.
As we move ahead with the development of various IT systems, we are seeking to build on our past efforts in ensuring
stable systems operations and responding to customers’
service- and business-related needs to develop the nextgeneration IT systems*1, and we are making steady progress.

Basic Approach
IT systems are crucial elements of ﬁnancial institutions’ management and business strategies, and high-quality IT strategies are key means of differentiating an institution from its
competitors and establishing superior competitiveness.
Based on this understanding and the lessons learned frompast system troubles, we are engaged in risk management
designed to ensure the stable operations of IT systems that play
important roles in our settlement infrastructure. Amid a societal
environment characterized by changes—such as those related
to the growing pervasiveness of the Internet, globalization of
economy, and the tightening supervisory regulations—we are
striving to meet customer needs by leveraging IT systems to provide secure, safe and seamless services in an “integrated manner
between the banking, trust banking, and securities entities.”
During the period of Mizuho’s Transformation Program, webegan developing a common IT system on a group-wide basis
and promoted reforms of system structures and IT-cost structures. Moreover, under our current medium-term business plan,
we are planning IT investments on an unprecedented scale
and are engaged in systems development to meet the various
needs associated with the expansion of Asia-related business,*1. Next-generation IT systems for deposits, exchange, loans, forex, andother areas.

Efforts to Strengthen IT Governance and Ensure Stable
Systems Operations to Support the Group’s Businesses
We are continually making efforts to ensure stable systems
operations by developing frameworks for the safe and reliable
development of IT systems and implementing such IT investments as those that promote common operational infrastructure, strengthen the management and increase the stability ofalready operating systems.
Fu r th e r m o re, by p ro m oti n g m e a s u re s to e s t a b l i s hgroup-wide data management systems and countermeasures
for frequent and sophisticated cyber attacks, we are striving
to strengthen our system infrastructure to efﬁciently support
our business while elevating levels of safety and security.

Efforts to Stabilize IT System Operations and Advancement in IT Systems
From April 2002

December 2004

April 2010 to March 2013

July 2013

December 2016 (scheduled)

Current medium-term business plan
Merger of Three Banks
Integration and reorganization into Two Banks

Mizuho’s
Transformation Program

Integration of systems
Migration to branches

Integrated strategy between
the “banking, trust banking,and securities entities”

Stable operation of IT system
Improvement of systems risk assessment

Thorough system risk management/
system quality management

Improvement of response capabilities to cyber attacks

Domestic

Upgrade services and functions
Common infrastructure
Cost reduction

Improvefunctions

One Bank
project

Strategic
rebuilding“System integration” and“the new frontier offinance” —One System

Reform of legacy
IT systems
Build core accounting
systems(rebuild areas including
deposits, exchange,loans and forex; replace
existing systems)• Improvement of products
and services(new channels, big data)

Next-generation IT systems• Globalization of finance(strengthening of global
competitiveness)

Introduce hub &spoke system

Overseas

Return to Japan*2. G-SIFIs: Global Systemically Important Financial Institutions

76

Rebuild peripheral
IT systems in stages

Introduce common
IT infrastructure

Expansion of global network
Renewal of core systems• Respond to ﬁnancial regulations(respond as a G-SIFI*2)

Human Resources Strategy

Social Contribution Activities

Efforts to Strengthen IT Governance and Ensure Stable Systems Operations to Support the Group’s Businesses
Customers

MHBK

MizuhoProvide customers with secure, safe and seamlessservices in an “integrated manner between banking,trust banking, and securities functions”

MHTB

Group strategy(regarding IT,
business,
and management)

MHSC
Other group companies

Efforts to strengthen IT governance and ensure stable systems operations to support the group’s businesses
Group-wide IT governance centered on the holding company
IT system infrastructure
Data center

Data management

Organizational structure

Stable systems operations

Development of
IT human resources

Data Management
Owing to the tightening of international ﬁnancial regulations
and the progress in IT, increasing attention is being focusedon “data management” for compiling and analyzing data to be
put into practical use in management. Aiming to develop andupgrade data infrastructure and to promote the analysis andutilization of data, we have established the Data Management
Department and is striving to increase the sophistication ofrisk governance by developing data base of management
information and to increase the sophistication of
non-face-to-face channel marketing that make use of data
analysis infrastructure.

Data Management

Project management

Information security

Cyber security

Cyber Security
As cyber-space is becoming an increasingly important platform for economic activities and it is forecast that the threat
from cyber attacks will escalate, we are determined to protect
our customers’ safety by implementing diverse countermeasures designed to prevent illegal money transfer.
Mizuho-CIRT *3 is taking the initiative in collaborating withspecialized institutions outside the Group to strengthen ourcapabilities for rapidly and effectively dealing with cyberattacks.
*3. Cyber Incident Response Team

Cyber Security
Attackers

Customers and others
MHBK, MHTB and MHSC

Customers

Illegal money transfers
Internetbanking
Branches

WebsitesAccounting systems
Targeted cyber attacks
ATMs

Call
centers

Treasury systems

Countermeasures

Website alteration

MizuhoDistributed denial ofservice (DDoS) attack

Information systems

Security measures for illegal money transfers

Sophistication of marketing

Risk, profit data

Sophistication of risk governanceOne-time password card
One-time password
distributed by e-mailAdditional authentication
using secret passwords
Monitoring of illegalmoney transfers

For corporate customers

Marketing data

Management information
database

For individual customers

Data analysis
infrastructure

Electronic certificate
Anti-virus software
Authority setting for every user
One-time password

77

Strengthening Management Foundations
Corporate Governance

RAF

Risk Management

Compliance

IT Strategy

Measures to Form a Common Culture throughout the Group

Measures to Form a Common Culture throughout the Group
Basic Approach

General Managers Off-site Meetings

As one of the ten basic strategies in our medium-term business plan, we have set “Embed the new Mizuho corporate
identity toward forming a common culture throughout thegroup and take actions toward being the best ﬁnancial
services provider.” Established in 2015, the One Mizuho Promotion Project Team (PT) is continuing its efforts in Japan andoverseas to ensure that each and every group employee
shares a common value system that encourages them to takea ﬂexible approach to changes in society and proactively step
up to the challenges they face, and it is also striving to drive
the self-starting actions of each and every employee acrossthe group.

We are continuing to hold “General Managers Off-site Meetings” for the managers of all of MHBK, MHTB and MHSC ofﬁces in Japan and overseas. In ﬁscal 2013 and ﬁscal 2014, a totalof 1,251 people participated in the meetings. By providing aforum for free and vigorous discussions among managers fromdifferent ofﬁces throughout the Group, we have enabled all
managers to share their ideas about how to realize the Group’s
Vision. Besides fostering a
sense of group unity andsolidarity, the meetings havefacilitated our efforts to cultivate a corporate culture inwhich employees can articulate their ideas in an open
and frank manner.

Creation of “Vision of Individual Offices”
and Supporting the Initiatives towards
Realizing These Visions
By combining the ideas and actions of individual employees,
Mizuho seeks to realize its Vision for the future within Mizuho’s
Corporate Identity as a whole group. Based on this concept,
employees and managers at every ofﬁce of MHBK, MHTB and
MHSC in Japan and overseas have undertaken discussions
culminating in the drafting of “Vision of Individual Ofﬁces.”
The staff members of each ofﬁce are striving to effectively promote progress toward the realization of their respective visions.
In addition, each ofﬁce has organized the “One Mizuho Day”
meetings to evaluate the actions taken in the previous ﬁscal
year and deliberate about the initiatives that should be implemented in the current ﬁscal
year. These ef for ts havefostered a shared desire
among each ofﬁce’s staff
members to proactively work
to improve their ofﬁces, andthis desire has led to anincrease in the self-directed
efforts of each ofﬁce.

Efforts to Become “the Best Financial Services Provider”
We are putting the “Mizuho Service Spirit (MSS),” which is theGroup’s common approach to improving customer satisfaction (CS), into practice.
Becoming “the Best Financial Services Provider”
through the Practice of MSS
Cycle of Interaction with Customers

I
IV

IV

Provide friendly service

Take prompt
actionTake prompt
actionIII

II

Think of the best solution
for the customer

Know the customer

IV Take prompt action

Discussion Meetings with Senior Management

78

Becoming the best ﬁnancial services provider
Customer satisfaction

All of MHBK, MHTB and MHSC ofﬁces in Japan and overseas haveheld “Discussion Meetings with Senior Management.” Thesemeetings are promoting a
sense of unity among employees and the senior management and they are also
fostering a sense of ownership regarding the respectiveroles and responsibilities ofindividual par ticipants inrealizing Mizuho’s Vision.

Positive
impressionof Mizuho!

Continual implementation of MSS initiatives

Human Resources Strategy

Social Contribution Activities

In addition, we are implementing the “Best Financial Services Provider Promotion Group Activities” initiative, whichorganizes discussions among members of branch and headofﬁces aimed at upgrading
the quality of services. In
ﬁscal 2014, a total of 74
employees participated in
discussions of eight themes,
and proposals regarding
each theme were compiled.

The Mizuho Values
1. Customer First: The most trusted partner lighting the future

Operational Process Reevaluation
Aiming to upgrade customer convenience and also spur still
greater energetic vitality on the parts of each employee
when providing services to customers, we are undertaking
an “Operational Process Reevaluation” initiative that isseeking to streamline, systematize, and otherwise improve
operational processes. In accordance with Mizuho’s efforts
to foster a common corporate culture throughout the Group,
we solicited opinions and proposals from a wide range of
employees. Based on that feedback, we are moving ahead
with efforts to go paperless and promote increased operational efﬁciency.

Events for Employees
As part of our efforts to promote group unity and solidarity,
we organize such group-wide events as “Japan National
Soccer Team Match Live Viewing” as well as “Mizuho Volunteer Day” events, through which the employees of ofﬁces
in each region undertakesocial contribution activities. Approximately 3,100
employees, including employees of each groupcompany, par ticipated in
the “Japan National Soccer
Team Match Live Viewing”
events.

One Mizuho Culture Prize

We are proud to be our customers’ most trusted partner lighting
the future. We put our customers ﬁrst and place their interests atthe core of our business. We bring together our group-wide expertise and provide the best ﬁnancial products and services to themwith honesty and integrity. We thereby earn our customers’ trust,which is fundamental to Mizuho, and contribute with our customers
to the prosperity of economies and societies.

2. Innovative Spirit: Progressive and flexible thinking
We consistently adopt a progressive and for ward thinking
approach, identifying new trends in the movements on the worldstage with wider vision. We value, encourage, and implement innovative ideas in a ﬂexible way of thinking to respond effectively tocustomer needs and changes in both local and global economies
and societies.

3. Team Spirit: Diversity and collective strength
We always keep an open mind, embrace diversity in all its forms,
and foster a strong team spirit to maximize our collective strength
as experienced ﬁnancial service professionals.

4. Speed: Acuity and promptness
We strive to provide our customers with the best products andservices with a focus on promptness and accuracy. We are acutely
sensitive to our customers’ needs and respond quickly.

5. Passion: Communication and challenge for the future
We are passionate about overcoming any challenges to open theway to a bright future of our customers, society and ourselves. We
bring fruitfulness to them by acting as our customers’ most trusted
partner and fulﬁlling our social responsibilities. Mizuho provides
them with lasting value. It is what makes us invaluable.

To spread the Mizuho Values which are the shared values
and principles of Mizuho’s employees, uniting all senior
management and employees together to pursue Mizuho’s
Vision, the One Mizuho Culture Prize is awarded by theGroup CEO in recognition of outstanding examples of putting the Mizuho Values into practice. In ﬁscal 2014, 53
employees won this prize.
79

Strengthening Management Foundations
Corporate Governance

RAF

Risk Management

Compliance

IT Strategy

Measures to Form a Common Culture throughout the Group

Human Resources Strategy
Human Resources (HR) Vision
In order to realize the corporate philosophy within Mizuho’s
Corporate Identity of creating lasting value for our customers
and the economies and communities of which we are a part,
it is important for employees to be able to relate to and takeaction in line with Mizuho’s Corporate Identity. To create sucha corporate culture, Mizuho is implementing human resources
initiatives in line with its HR Vision.

MHSC, and other group companies, we also are proactively
using programs for training and seconding personnel andtransferring personnel hired outside of Japan (“National Staff,”hereinafter NS) to the Head Ofﬁce as a means of fostering
employee development on a group-wide and global scale. By
enabling employees to obtain work experience in each groupcompany, we are broadening individual employees’ range ofexperience and perspective while also increasing the depth ofmutual understanding among employees in various groupcompanies in a manner that promotes the strengthening ofgroup integration and coordination.

HR Vision

Mizuho Financial Group ﬁrmly believes that thepersonal development of individual employees contributes to the stable and sustainable grow th ofMizuho as a whole.
Mizuho recognizes those employees who make aneffort to put the Mizuho Values into practice and helps
employees to create a more fulﬁlling life through theirwork.

• Mizuho encourages employees to utilize their strengths,
and provides opportunities for them to use their skills
and to develop their abilities.
• Mizuho encourages employees who differ in terms ofgender, country of origin, cultural background, andvalues to understand, respect, and inspire each other.
• Mizuho works with its employees to create a corporate culture that encourages people to be passionate
about and to take pride in their work.

Developing Employees to Better Equip them toSupport Business Strategies
Cross-Company Personnel Transfers
In addition to personnel transfers across MHBK, MHTB,

Number of Cross-company
Personnel Transfers between
MHBK, MHTB and MHSC

Number of MHBK, MHTB and MHSC
Employees with Experience at
Multiple Group Companies

Group-wide Training Programs
In addition to the training programs of each group company
designed to enable employees to equip themselves with specialized expertise and business skills in accordance with thestrategies of each group unit, our “Mizuho University” framework encompasses training programs focused on MBA curriculum topics, programs to dispatch employees to study at graduate schools and other educational institutions in Japan andaround the world, and programs inviting applications for overseas study opportunities as well as group-wide programs thatenable NS and Japanese staff to train together at the Head
Ofﬁce. To foster a sense of unity among all the group companies and to create the foundations of close collaboration
between those companies, the Group’s banking, trust banking,and securities arms cooperatively implement suchcareer-stage-speciﬁc training programs as “joint training for
newly hired personnel,” “managerial training,” and “managementlevel training courses.”
Fostering the Development of Globally-minded Employees
In step with the expansion of our business outside of Japan,
we have proactively transferred Japanese staff to overseas
posts and training assignments in line with our emphasis on
fostering the development of employees who can dynamicallybeneﬁt our businesses in a global manner.
We are also proactively hiring NS and, to enable NS to realize diverse career paths and fully make use of their potential forcontributing to Mizuho’s business, we are moving ahead withsuch measures as those to transfer NS to other countries,

Percentage of Female Management-level Employees(%)
20

Goal: around 15%
15.9

15
11.6

employees(ﬁscal 2014)

employees

13.0

10

(as of March 31, 2015)

8.1

9.2

14.3
12.0
10.5 Goal: around 12%

5
March 2012 March 2013 March 2014 March 2015

80

Banking division(MHBK and MHTB)
Securities division(MHSC)* March 2012 ﬁgure for
the S e c u r i t i e s d i v i s i o n is the sum of the
pre-merger MHSC andthe pre-merger Mizuho
Investor Securities.

Human Resources Strategy

Social Contribution Activities

appoint NS to high-level positions, and offer NS an augmented
range of training opportunities. The Global Career Management
Division, which is responsible for NS-related personnel management, has become the ﬁrst Head Ofﬁce division in Japan
headed by a non-Japanese general manager.

Human Resource Management that
Encourages Employees to Be Passionate
about and Take Pride in Their Work
Putting the Mizuho Values into Practice
We believe that realizing Mizuho’s Corporate Identity will require
fostering the development of a corporate culture in which each
employee takes self-directed action in line with the “Mizuho
Values.”The Mizuho Values provide an important reference point
regarding employee evaluation, and we are creating systems
that facilitate employees’ efforts to effectively implement theMizuho Values during the course of their daily work.
Furthermore, we are measuring the degree of individual employees’ efforts to effectively implement the Mizuho Values
through the means of “360-degree evaluations,” which is asystem where an employee is evaluated by colleagues, including direct reports. The 360-degree evaluations not only
improve the transparency and acceptance of employee evaluations, but also encourage employees to be proactive inchanging their behavior.
Support for Career Development
Mizuho provides diverse kinds of support to enable employees to think about, plan, and develop their own careers going
for ward. These suppor t methods—such as the “Career
Sheet” system, which enables employees to share information
about their work experience, area of specialty, and hoped-for
assignments with their managers; a career interview systemthat provides consultations with specialist advisors; the “Job
Application System,” which enables employees to directly
submit applications for new posts; and the “Global Opportunity Program,” which offers young NS opportunities to work in
Head Ofﬁce positions—are all designed to help employees
pursue the career development paths of their own choice and

Employee Opinion Survey Results
Fiscal 2013
Job satisfaction
Pride in being a
Mizuho employee

3.7
3.7

Fiscal 2014
3.7
3.7

* Figures represent group-wide averages of
responses on a scale of 1 (low) to 5 (high).

Each group company annually conﬁrms the natureof employee opinions byimplementing an employee opinion survey, including questions regarding
the level of respondents’“Job satisfaction” and“Pride in being a Mizuho
employee.”thereby encourage employees to be passionate about andtake pride in their work.
Promoting Diversity
Mizuho is working to create work environments in which employees of different nationality, race, gender, and values canconsistently maintain mutual respect for each other while
taking full advantage of opportunities to make the most of theirindividual and collective abilities.
In accordance with our “Four Rs” basic policy on promoting
the career development of female employees, we are supporting
female employees’ careers by enhancing our systems for helping women realize an optimal balance between work and raisinga child or assisting family members who require special care,organizing training courses and seminars designed to support
female employees’ career development, and proactively promoting female employees to management posts. In these and otherways, we are encouraging female employees to be highly motivated and ambitiously seek to fully realize their potential.
We are striving to deepen employees’ understanding ofdiversity and spur changes of perspectives and behavior
through initiatives such as regular articles in the group communication magazine and organizing managerial training. At
the same time, we are working to establish ﬂexible work systems and tools that support the diverse work styles of employees with a wide variety of personal backgrounds.

The “Four Rs”: Basic Policy for Empowering Women in the Workplace

Promote active
hiring of women

Support the activities of womenin diverse areas and promote
them to managerial positions

Create environmentsthat sustain
motivation andprevent turnover

Actively promote internal andexternal dialog to encouragea change in mindset for theorganization as a whole

EuropeThe Americas
Asia

Change in the Number of NS(No. of NS)
10,000
8,000
6,000
4,000
2,000
0

8,218
1,560

6,745
1,303
1,460

7,163
1,325
1,546

7,745
1,427
1,679

1,805

3,982

4,292

4,639

4,853

March 2012 March 2013 March 2014 March 2015

81

Strengthening Management Foundations
Corporate Governance

RAF

Risk Management

Compliance

IT Strategy

Measures to Form a Common Culture throughout the Group

Social Contribution Activities
One key goal ar ticulated within Mizuho’s Medium- andLong-term CSR Initiative Policy is “Promote social contributions activities that take into consideration the needs of local
regions and society.” Based on this objective, Mizuho has
drafted its “Standards for Social Contribution Initiatives,”
which include such items as Policies for Social Contribution
Initiatives and priority initiatives, and group companies arecooperating to promote its social contribution activities inaccordance with these policy frameworks.

Policies for Social Contribution Initiatives
harmonizes its own proﬁt-making activities with
• Mizuhoinitiatives that beneﬁt society, and, as “a good corporate•••

citizen” striving to support society and develop together
with society, Mizuho fulﬁlls its responsibilities for contributing to society.
Mizuho believes that, through its social contribution initiatives, it contributes to the sustainable development of society and, thereby, works to realize the vision of Mizuho’s
Corporate Identity and build the base for creating its corporate value and developing its activities.
Mizuho believes the social contribution initiatives of Mizuho
employees contribute to employee growth and development of a sense of being members of society. Accordingly,
Mizuho actively supports these initiatives.
Mizuho proactively discloses information regarding our corporate stance toward social contribution initiatives and ouractual activities. In addition, Mizuho will continue to improvethese initiatives, by encouraging close communication withsociety through dialogue with stakeholders to ensure that
our corporate activities conform to social standards andexpectations.

Priority Initiatives

well as government organizations, NPOs, regional communities, and others
For more details, please access MHFG’s websites.
http://www.mizuho-fg.co.jp/english/csr/local/index.html

Support for Financial Education
Mizuho has drawn on its practical knowledge and know-how
as a provider of comprehensive ﬁnancial services to moveahead with the provision of support for ﬁnancial education at
two levels—elementary and secondary level and the higher
education level. In ﬁscal 2005, we clariﬁed our policy regarding the proactive promotion of support for ﬁnancial education
and, as a result of our progressive efforts in this regard, theaggregate number of people who have participated in ﬁnancial education programs implemented by Mizuho has reachedapproximately 41,000. In addition, Mizuho is implementing awide range of initiatives overseas based on local needs.
Activities in Elementary and Secondary Education
Mizuho has been conducting a joint research on ﬁnancial education with Tokyo Gakugei University since ﬁscal 2006. By leveraging the special strengths and networks of each of the two partners, including Mizuho’s ﬁnance-related resources and Tokyo
Gakugei University’s education-related resources, the research
project has developed ﬁnancial education tools as well as taken
diverse initiatives designed to promote the implementation ofﬁnancial education programs on a broader scale.
Based on the results of the research, Mizuho has arranged
for its employees to visit
schools and teach ﬁnancerelated classes as guest
instructors, and it is also
cooperating in accepting
children and students forwork experience.

that take full advantage of our management• Initiatives
resources and promote initiatives that contribute to•regional and social development
Initiatives in collaboration and cooperation with regionalsocieties that are the basis for the activities of Mizuho as

Activities in Higher Education
In the area of higher education, as an effort to develop humanresources with high-level ﬁnancial knowledge who will be

Number of Yellow Badges*1 Delivered to First Graders

Corporate Citizenship Outlays
Environment and others 5.0%
Activities to revitalize local
communities and createa safe society 6.2%
Humanitarian activities
and social welfare 7.6%
Health and sports 19.1%
Arts and culture 19.5%

82

A total of
Total outlay¥915 million
Fiscal 2014

1965 to 2015
Education, research andinternational exchange 42.6%(20% of which are
ﬁnancial education)

million badges*1. Yellow Badges: Badges with trafﬁc accident insurance
presented to ﬁrst graders nationwide with the intent of
ensuring daily safe commutes for schoolchildren.
*2. In cooperation with Sompo Japan Nipponkoa Insurance, Meiji
Yasuda Life Insurance and The Dai-ichi Life Insurance.

Human Resources Strategy

Social Contribution Activities

responsible for the next generation, we started offering
full-scale, donated lectures and courses at universities inﬁscal 2006.
Employees with hands-on expertise are deployed to givelectures and courses that leverage knowledge Mizuho has
acquired through the comprehensive ﬁnancial services it offers
in banking, trust banking, securities and asset management.
Furthermore, we endeavor
to establish themes to take
into account the latest ﬁnancial environment andissues affecting the ﬁnancial sector in order to makethe lectures and courses
more practical.

Fukushima Prefecture, which was severely affected by the Tsunami. In April 2013, Mizuho signed an agreement with Fukushima
Prefecture, Iwaki City and the owners of the disaster-prevention
forest to restore the approximately 1.3 hectare forest of Iwaki
City, Fukushima Prefecture by March 2019. As of May 2015, a
total of approximately 260 employee volunteers have participated together with local
government associates andlocal residents in two treeplanting campaigns thatsucceeded in planting approximately 9,000 Japanese
black pine tree seedlings.

Activities in India
MHBK is conducting a ﬁnancial literacy program at its branchofﬁces in India in concert with the concept of the Reserve
Bank of India (India’s central bank)’s Financial Inclusion Project. Each branchjoined with NGOs and othergroups to teach students
and youth about the importance of prudent spending
and saving.

Mizuho proactively encourages volunteer activities in the communities that are the foundation of its activities. The aims ofthese activities include strengthening relationships with local
communities and contributing to nurturing a unity of purpose
among all management and employees as well as developing
a sense of being members of society.

Social Contribution Activities in the
Disaster-Stricken Areas
To promote the recovery of industries and regions that sufferedfrom the Great East Japan Earthquake Disaster, Mizuho isengaging in various social contribution activities in a sustainedmanner. These activities include providing employee volunteers, offering information to persons who have ﬂed from thestricken areas, and organizing ﬁnancial education programs.

Volunteer Activities by Employees

Mizuho Volunteer Day
Since ﬁscal 2006, a period has been designated each year for“Mizuho Volunteer Day” for management and employees tofocus on engaging actively in substantive volunteer activities.
Employees are engaged in a wide range of activities that were
designed to meet community needs.
During the period from July to November 2014, a total of
approximately 5,100 Mizuho employees, the members of theirfamilies, and others at 61 locations in 19 countries participated in the Mizuho Volunteer Day.

Mizuho Forest Project
Mizuho is engaging in the Mizuho Forest Project, aimed at reviving the disaster-prevention forest planted along the coast ofParticipants of Mizuho’s Financial Education Programs

During ﬁscal
2006 to 2014

Approximately

Number of Participants of the Mizuho Volunteer Day

peopleDuring ﬁscal
2006 to 2014

Approximately

people83

Strengthening Management Foundations

Stakeholder Communications
Having articulated its fundamental ethical posture towards its stakeholders in Mizuho Code of Conduct, Mizuho proactively
undertakes communication activities and strives to ensure that its corporate activities are in harmony with common sense as
well as being fair and transparent.

Mizuho’s Stakeholder Communication• Dialog at branches and through our sales staff• Customer feedback cards• Call centers• Website• Questionnaires for customers and customer
satisfaction surveys• PR activities• Appropriate responses to super visor yauthorities• Activities through industry associations• Public-private partnership initiatives• Policy recommendations

Customers

Government
Authorities• General meeting of shareholders, brochure
entitled the “Report to Our Shareholders”• Investor Briefings, IR contact page
• Dissemination of information throughwebsites and disclosure materials• PR activities• Responding to socially responsible
investment surveys, etc.

Shareholders

MizuhoSuppliers andCompetitors• Purchasing activities and outsourcing
contracts based on the Mizuho Code of
Conduct as well as on compliance regulations, outsourcing regulations, etc.
• Coordination and cooperation in businessactivities• Cooperation through industry associations and diverse initiatives

84

FY2013

FY2014• Education and training• In-house communication activities• Employee opinion surveys• Labor-management consultations• Arrangement for responding to consultations and complaints

Regional/
Local Communities• Social contribution activities• Support for financial education• Stakeholder dialog• PR activities* Sum of MHBK, MHTB
and MHSC

The Number of Customer
Feedback Cards Collected(thousand cards)
30
25
20
15
10
5
0
FY2012

Employees

The Number of Phone Inquiries
Received at Call Centers(thousand inquiries)
350
300
250
200
150
100
50
0
FY2012FY2013

FY2014* Sum of MHBK, MHTB
and MHSC

Communication Activities Example (1) –Communication with customers
Mizuho is improving customer satisfaction by putting theGroup’s common approach, Mizuho Service Spirit into practice.
We consider customer feedback to be an important management resource that facilitates our efforts to investigate andanalyze the causes of problems, clarify the tasks that must be
addressed, and implement the measures required to elevatethe level of the entire Group’s management quality andimprove the Group’s products and services going forward.

Communication Activities Example (2) –Communication with shareholders
We are striving to be understood well taking advantage ofinteractive communication with shareholders and otherinvestors.

The 13th ordinary general meetingof shareholders
Held on June 23, 2015 at Tokyo
International Forum.
Participants: 3,303 shareholders

Customer Feedback Cards

Call centers
Investor briefings for institutional andindividual investors
Seven briefings were held in fiscal
2014.
Participants: approximately 1,000
investors in total

Communication Activities Example (3) – Participation in Initiatives
Mizuho, given its global perspective and role as a financial institution, participates in domestic and overseas initiatives to advance
activities for the formation of a sustainable society.

United Nations Global Compact

UNEP Finance Initiative (UNEP FI)

Ten principles addressing matterslike human rights, labor, the environment, and anti-corruption.

International partnership of financial
institutions concerning sustainable
practices in the various operations
in which financial institutions are
involved.

Equator Principles
Applies the Equator Principles torequire consideration of environmental and social impacts of large-scalep r o j e c t- r e l a t e d fi n a n c i n g a s afundamental principle.

Principles for Financial Action forthe 21st Century Website

UN’s “Principles for
Responsible Investment” (PRI)

Business and Biodiversity
Offsets Program (BBOP)

Principles which ensure environmental, social, and corporate governanceissues are incorporated into thedecision-making processes.

I n i ti ati ve s to c re ate a c o m m o n
global framework for protection of
biodiversity. Mizuho is a member ofthe BBOP advisory group.

Initiatives by financial institutions inJapan for financial action towards asustainable society.

July 2015
Published the Integrated Repor t for the firsttime

R a n ke d N o.1 a m o n gbanks in “Gomez IR
website ranking 2015”
for the second consecutive year.

85

Mizuho’s Office Network

We utilize our office network, which covers every prefecture in Japan as well as major overseas cities, to respond to ourcustomers’ diversified and globalizing financial needs while supporting the smooth progress of economic activities.

Europe, the Middle East and Africa
MHBK 18 offices
MHTB 1 office
MHSC 4 offices
DIAM
1 office

Asia and Oceania
MHBK 43 offices
MHSC 7 offices
DIAM
2 offices

Amsterdam

Brussels

Düsseldorf

LondonBeijingFrankfurt

Luxembourg

Moscow
Paris

ViennaMadridMilan

New Delhi
Bahrain
Dubai

Seoul
SuzhouWuhan

TehranRiyadhDalianQingdaoNanjing
Wuxi
Hefei

Istanbul

ZurichTianjin

XiamenShenzhen
Guangzhou

ShanghaiHong Kong
Taipei

Hanoi

MumbaiTaichung
KaohsiungBangalore-Devanahalli
Chennai

YangonBangkok
Eastern Seaboard

ManilaPhnom Penh
Ho Chi Minh City
Kuala Lumpur

LabuanSingapore
Jakarta
Johannesburg
Sydney86

International Network (As of June 30, 2015)
MHBK: 81 offices
Overseas branch or relevant office
Overseas representative office
Overseas subsidiary

MHTB: 2 offices
Overseas subsidiary

MHSC: 24 offices
Overseas subsidiary
Overseas representative office

DIAM: 4 offices
Overseas subsidiary

Note: Overseas subsidiaries include head offices, branches or relevant offices, and representative offices of overseas subsidiaries.

Americas
MHBK 20 offices
MHTB 1 office
MHSC 13 offices
DIAM
1 office

ChicagoCalgary

TorontoBostonVancouver
HobokenSan Francisco

New York
Atlanta
HoustonLos Angeles

NassauCaymanMexico City

Network in Japan (As of May 31, 2015)
MHBK
Head Office and Branches: 421
Sub-branches: 40
MHTB
Head Office and Branches: 36
Sub-branches: 17
MHSC
Head Office and Departments: 3
Branches: 105
Planet Booths: 165
Financial Advisors Sales Department: 1*Planet Booths are the consulting boothsof MHSC located in MHBK’s BranchesSão Paulo
Santiago

M H B K o p e n e d th e E a s te r n S e a b o a rd
Branch in March 2015.
Mizuho Bank Nederland opened the Vienna
Branch in July 2015.
M H B K o p e n e d th e Ya n g o n B r a n c h i nAugust 2015.
MHBK opened the San Francisco Representative Office in September 2015.
MHBK opened the Ahmedabad Branch in
September 2015.

87Corporate Profile

Company Name:

Mizuho Financial Group, Inc.

Stock Listing (Code):Tokyo Stock Exchange (8411)
New York Stock Exchange (MFG)

Location of Head Office:1-5-5, Otemachi, Chiyoda-ku, Tokyo 100-8176, Japan
Tel. +81-(0)3-5224-1111

Representative:

Yasuhiro Sato, President & CEO

Capital:¥2,255,404 million

Issued Shares:

25,536,649,967 shares
Common Stock: 24,621,897,967 shares
Preferred Stock: 914,752,000 shares

Number of Employees: 1,152(Total number of employees on a consolidated
basis: 54,784)
Date of Establishment:

January 8, 2003
(As of March 31, 2015)

Mizuho’s Group Structure
Mizuho Financial Group

Mizuho Private Wealth Management

Mizuho Information & Research InstituteMizuho Research InstituteDIAM

Mizuho Asset Management

Trust & Custody Services Bank

Mizuho Securities

Mizuho Trust & Banking

Mizuho Bank

88

Websites

Information useful to our customers can be found on our website including company information and introductions of business operations at group companies. Moreover, information on IR, finance, exchange rates and branch guidance, various financial products andservices, as well as industrial and economic reports are available. Some of the banking transactions and inquires can also be made.

Mizuho Financial Group
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Investor Relations
Financial Information
IR Information
Stock Information
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CSR Report
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http://www.mizuhobank.com/index.html
About Mizuho Bank
Corporate Information
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Products & Services
Markets & Reports
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Economic ReportNews Release
Overseas Offices

Mizuho Trust & Banking

Mizuho Securities

http://www.mizuho-tb.co.jp/english/index.html

http://www.mizuho-sc.com/english/index.html

89

90

Appendix91Profiles of Group Companies (As of March 31, 2015 except for each company’s office network, which is as of May 31, 2015)

Mizuho Bank (MHBK)

Mizuho Securities (MHSC)

Date of Establishment:

July 1, 2013

Date of Establishment:

January 4, 2013

Capital:¥1,404,065 million

Capital:¥125,167 million

Location of Head Office: 1-5-5, Otemachi, Chiyoda-ku,
Tokyo 100-8176, Japan
Tel. +81-(0)3-3214-1111

Location of Head Office: Otemachi First Square, 1-5-1, Otemachi,
Chiyoda-ku, Tokyo 100-0004, Japan
Tel. +81-(0)3-5208-3210

Representative:

Representative:

Nobuhide Hayashi, President & CEO

Hiroshi Motoyama, President & CEO

Number of Employees: 26,561

Number of Employees: 6,848

Domestic Network

Domestic Network

Overseas Network

Head Office and Branches: 421
Sub-branches: 40
Branches or Relevant Offices: 38
Representative Offices: 7
Subsidiaries: 36

Mizuho Trust & Banking (MHTB)
Date of Establishment:

March 12, 2003

Capital:¥247,369 million

Location of Head Office: 1-2-1, Yaesu, Chuo-ku, Tokyo 103-8670,
Japan
Tel. +81-(0)3-3278-8111
Representative:

Takeo Nakano, President & CEO

Overseas Network

Head Office and Departments: 3
Branches: 105
Planet Booths: 165
Financial Advisors Sales Department: 1
Representative Offices: 2
Subsidiaries: 22

Trust & Custody Services Bank (TCSB)As Mizuho’s trust bank specializing in asset administration, TCSB willcontinue to provide high-quality, high-value-added trust and custody
services to customers including large institutional investors. As of
March 31, 2015, the balance of assets under custody and administration exceeded ¥380 trillion, the largest scale in Japan.
Date of Establishment:

January 22, 2001

Capital:¥50,000 million

Location of Head Office: Tower Z, Harumi Triton Square, 1-8-12,
Harumi, Chuo-ku, Tokyo

Number of Employees: 3,152
Representative:
Domestic Network
Overseas Network

92

Head Office and Branches: 36
Sub-branches: 17 (Trust Lounges: 16)
Subsidiaries: 2

Akira Moriwaki, President & CEO

Number of Employees: 603

Mizuho Asset Management (MHAM)
MHAM’s core businesses are investment trust business, mainly for
individuals and financial institutions, and investment advisory business,principally for public and private pensions, financial institutions andcorporations. MHAM’s asset management products and services
cover a wide range from equities and bonds to alternative investments.
Date of Establishment:

July 1, 2007

Capital:¥2,045 million

Mizuho Information & Research Institute (MHIR)
With IT as its core technology, MHIR is a professional organization
with more than 4,000 employees that provides assistance to corporations in increasing their corporate value through its consulting,system integration and outsourcing services.
Date of Establishment:

October 1, 2004

Capital:¥1,627 million

Location of Head Office: 2-3 Kanda-Nishikicho, Chiyoda-ku, Tokyo
Location of Head Office: 3-5-27, Mita, Minato-ku, Tokyo
Representative:
Representative:

Junichi Nishizawa, President & CEO

Hidetake Nakamura, President
Number of Employees: 4,245

Number of Employees: 229

Mizuho Private Wealth Management (MHPW)
DIAM
DIAM is an asset management company in which The Dai-ichi Life Insurance
and Mizuho both have equity holdings. DIAM collaborates with its offices in
Europe, the United States and Asia to offer investment trust products toindividuals and corporate customers, as well as provide investment advisory
services to customers including Japanese and overseas pension funds.
Date of Establishment:

October 1, 1999

Capital:¥2,000 million

MHPW offers consulting services tailored to the needs of its customers.
These services range from consulting on customers’ financial matterssuch as wealth management, arranging for business inheritance toadvice on customers’ individual matters, including health of the customers themselves as well as family members and children’s education.
Date of Establishment:

October 3, 2005

Capital:¥500 million

Location of Head Office: 1-1-5, Uchisaiwaicho, Chiyoda-ku, Tokyo
Location of Head Office: New Tokyo Building 5th Floor, 3-3-1,
Marunouchi, Chiyoda-ku, Tokyo
Representative:

Representative:

Takeru Watanabe, President(Appointed on April 1, 2015)

Yasumasa Nishi, President & CEO
Number of Employees: 35

Number of Employees: 433
Overseas Network

Subsidiaries: 4

Mizuho Research Institute (MHRI)MHRI is a think tank with high-level research and solution-development
divisions as well as its own corporate membership organization.
MHRI’s missions are working to contribute to the wide prosperityof its customers and the development of society.
Date of Establishment:

October 1, 2002

Capital:¥900 million

Location of Head Office: 1-2-1, Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative:

Mitsuaki Tsuchiya, President & CEO

Number of Employees: 291

Mizuho Financial Strategy (MHFS) merged with Mizuho
Office Management on July 1, 2015, with Mizuho Office
Management as the absorbing company and MHFS as thedissolving company.
Notes: 1. The representatives of each company have representation rights.
2. The numbers of employees do not include each company’s
employees dispatched outside each company while it includes
employees dispatched from outside each company. This figure
also includes overseas local staff but excludes executive officers
and temporary employees.
3. Overseas subsidiaries includes head offices, branches and representative offices of subsidiaries.

93

Compliance Contacts“Internal Controls and Audit Hotline”—A system designed for obtaining concerns
regarding questionable accounting or auditing
matters—
Reporting Items: MHFG has established a hotline to receive
reports from in and outside the company inconnection with problems concerning internal
controls and audits of accounts and financial
reports.
Contact Point: This hotline has been established within an
external law office. Please use conventional
mail or e-mail for reporting.
Conventional mail:12th Floor, Kasumigaseki Bldg.,
Kasumigaseki 3-2-5, Chiyoda-ku,
Tokyo 100-6012
Mizuho Accounting Hotline, c/o Daiichi
Fuyo Law OfficeE-mail: kaikei-mizuho@daiichifuyo.gr.jp• When reported matters are within the scope of the reporting
items, MHFG will do reasonable efforts to investigate thefacts behind the information received and report back on the
results.
• Anonymous tips are also acceptable, but there are cases
where it will not be possible to fully satisfy the intentions
behind such tips owing to constraints on investigations andthe inability to report back.
• Information on persons making such reports is not disclosed
to third parties other than the group companies except incases where the assent of the person in question has beenobtained or such disclosure is required under laws and ordinances, etc.

94

Approaches to the Financial Alternative
Dispute Resolution (ADR) System
In order to deal expeditiously, fairly and appropriately withcomplaints, etc., from customers, MHBK and MHTB have concluded the basic contract for the implementation of dispute
resolution procedures with the Japanese Bankers Association,
which is a designated dispute resolution institution as definedin Japan’s Banking Act. MHTB has also concluded the basic
contract for the implementation of dispute resolution procedures with the Trust Companies Association of Japan, which isa designated dispute resolution institution as defined inJapan’s Trust Business Act and Act on Concurrent Operation,etc. of Trust Business by Financial Institutions.
The designated dispute resolution institution takes the steps
towards resolution from a fair and neutral perspective in cases
where the solutions to customers’ complaints adopted by thetwo banks are not accepted.
The Designated Dispute Resolution Institution as Defined inJapan’s Banking Act which MHBK and MHTB Concluded
the Basic Contract withThe Designated Dispute Resolution Institution:
the Japanese Bankers Association
Contact: Advisory Center of the Japanese Bankers Association
Tel.: +81-(0)3-5252-3772
The Designated Dispute Resolution Institution as Defined inJapan’s Trust Business Act and Act on Concurrent
Operation, etc. of Trust Business by Financial Institutions
which MHTB Concluded the Basic Contract withThe Designated Dispute Resolution Institution:
Trust Companies Association of Japan
Contact: Trust Consultation Center of the Trust Companies
Association of Japan
Tel.: +81-(0)3-6206-3988

Risk Management Structure

Commitment to Risk Management

Board of Directors

Audit Committee

President & Group CEO(Group CEO)

Executive Management
Committee
Business Policy Committees(Risk Management
Committee, etc.)

Management

Risk Management Structure
Each of our subsidiaries adopts appropriate risk management
measures for its business based on the size and nature of its
risk exposures, while MHFG controls risk management for theGroup as a whole. At MHFG, the Risk Management Committee
chaired by the Group Chief Risk Officer (Group CRO) provides
integrated monitoring and management of the overall risk for
the Group. The Group CRO reports the risk management situation to the Board of Directors, the Audit Committee, theExecutive Management Committee and the President & Group
CEO, on a regular basis and as needed. MHFG regularly
receives reports and applications concerning the risk management situation from our core group companies and gives themappropriate instructions concerning risk management. Our
core group companies each maintains its own system for managing various types of risk, regularly receiving reports on thestatus of risk at their respective subsidiaries, and gives themappropriate instructions concerning risk management.

MHFG
Supervision,
Audit

Basic Approach
Progress in financial deregulation and internationalization has
led to growth in the diversity and complexity of banking operations, exposing financial institutions to various risks, including
credit, market operations, information technology, legal, settlement and other risks. We recognize the conducting of operations tailored to the risks and managing such risks as a key
issue relating to overall management. In order to implement ourbusiness strategy while maintaining our financial stability, we
maintain comprehensive risk management and control measures. MHFG maintains basic policies for risk management
established by its Board of Directors that are applicable to theentire group. These policies clearly define the kinds of risks to
be managed, set forth the organizational structure and provide
for the human resources training necessary for appropriate levels of risk management. The policies also provide for audits tomeasure the effectiveness and suitability of the risk management structure. In line with these basic policies, we maintainvarious measures to strengthen and enhance the sophistication of our risk management system.

Risk Management Structure

Officer responsible for risk management(Group CRO, etc.)
Risk Management Division
Credit Risk Management Division
Divisions responsible for risk management• Report the risk management
situations• Submit applications concerning risk management• Set risk management policies• Give instructions and approvals concerning risk
management

Core group companies
MHBK

MHSC

MHTB

Other
core groupcompanies

MHBK MHTB

Board of Directors

Executive Management
Committee

President & CEO

Business Policy Committees
CRO<Market operations>Middle offices

Risk Management Division
Credit Risk Management Division
Divisions responsible for risk management• Set risk management policies• Give instructions and approvals concerning risk
management• Report the risk management
situations• Submit applications concerning risk management

Subsidiaries managed by the core group companies

95

Risk Management Structure

Approach to the Basel Regulatory Framework
Basel III Framework, the regulations for international standards of the health of banks, is being phased in from 2013,
which consists of minimum capital requirements, a leverage ratio and a global liquidity standard. Basel III is basedon the Basel II framework which requires the observance of“three pillars.” “Pillar 1” is minimum requirements relating torisk which should be maintained by banks. “Pillar 2” is theself-disciplined risk management by financial institutions
with a supervisory review process. “Pillar 3” is market discipline allowing for assessment by the market throughappropriate disclosure.
We have been calculating our capital adequacy ratios byapplying the Advanced Internal Ratings Based approachfor the calculation of credit risk from March 31, 2009 and
the Advanced Measurement Approaches for the calculation of operational risk from September 30, 2009. In Japan,
from March 31, 2013, the minimum capital requirements
based on Basel III began to be phased in, and we havebeen calculating capital adequacy ratios based on the revisions to capital adequacy guidelines published by the
Financial Services Agency. The Basel Committee continues

General Concept of Risk Management
Basic Approach
We classify our risk exposures according to the various kindsof risk, including credit risk, market risk, liquidity risk and operational risk, and manage each type of risk according to its
characteristics. In addition to managing each type of risk individually, we have established a risk management structure to
identify and evaluate overall risk and, where necessary, todevise appropriate responses to keep risk within limits that aremanagerially acceptable in both qualitative and quantitative
terms. In line with the basic policies relating to overall risk management laid down by MHFG, companies within the Groupidentify risk broadly and take a proactive and sophisticatedapproach to risk management, including methodologies for
operations that involve exposures to multiple categories of risksuch as settlement and trust businesses.
Risk Capital Allocation
We endeavor to obtain a clear grasp of the group’s overall risk
exposure and have implemented measures to keep such risks
within the Group’s financial base in accordance with the risk
capital allocation framework. More specifically, we allocate risk
capital to our core group companies, including their respective
subsidiaries, to control risk within the limits set for each company. We also control risk within managerially acceptable limits
by working to ensure that the overall risk we hold on a consolidated basis does not exceed shareholders’ equity and other96

to review the treatments related to capital requirements.
We will comply with new requirements appropriately. And
we have been identified as a G-SIB by the Financial
Stability Board in November 2014. In case we are to be
identified as a G-SIB, the stricter capital requirements will
be applied.
A leverage ratio also has been implemented under “Pillar
3” from March 31, 2015 and we began disclosing it. And a
global liquidity standard has been implemented under“Pillar 1” from March 31, 2015 in Japan and we have been
calculating our liquidity coverage ratio.
Glossary
Advanced Internal Ratings Based (AIRB) Approach
AIRB is one of the calculation methods for credit risk assets provided for by
Basel II. Under AIRB, both probability of default and loss given default used
for calculation of credit risk assets are estimated by the bank’s own internal
experiences.

Advanced Measurement Approaches (AMA)
AMA is one of the calculation methods for operational risk assets provided forby Basel II. AMA is a risk asset calculation method based on statistics that not
only utilizes data from internal losses experienced by the company, but alsoutilizes scenario data to calculate the impact of events that may be experienced in the future.

measures of financial strength. To ensure the ongoing financial
health of MHFG and our core group companies, we regularly
monitor the manner in which risk capital is being used in orderto obtain a proper grasp of the risk profile within this framework. Reports are also submitted to the Board of Directors andother committees of each company. Risk capital is allocated to
MHBK, MHTB and MHSC by risk category, and is further allocated within their respective business units based on established frameworks.
Stress Testing
We conduct stress testing based on several scenarios, such as
economic recession and turmoil in financial markets. We measure and analyze the impacts on us from each scenario. The
results of stress testing are utilized for setting the level of risk
appetite, identifying the appropriateness of our business planning, and assessing our internal capital adequacy. Our stresstesting scenarios are formulated through discussions regarding
down-side risks in the macro-environment based on underlying
macroeconomic events and economic outlook and significant
risks for us specified through analysis of our business portfolio.
We estimate the impact on us by setting parameters such as
economic output, stock market and interest rate levels for eachscenario.

Allocation of Risk Capital(Example)

MHFG
The group’s risk
exposure

The group’s financial
strength

Core groupcompanies’
risk exposure*

MHTB

Risk limits, etc., based on risk capital are set, and controls are
imposed on each type of risk.

Allocated risk capital

MHBK

MHBK

MHSC

Capital, etc.

Credit risk
Market risk
Equity risk

Allocation toeach business unit

Operational riskGroupcompanies, etc.

MHTB
Other risk exposure

MHSC* Including risk exposures of the subsidiaries of the core group companies.

The Process of our Stress Testing
Define and generate through discussion
regarding external and internal environment

1.
Developmentof stress
testing
scenarios[Major macroeconomic indices]
GDP growth rates, stock prices, interest rates,
foreign exchange rates, etc.
External environment (economic
environment, economic outlook)
Specify downside risks of macro
environment
Internal environment (business portfolio, etc.)
Specify significant risks for us*1

2.
Measurement
and analysisof the impacts

3.
Utilizing
the result

Measure and analyze the impact on us fromeach scenario[Major items measured]Pre-provision net revenue,
capital adequacy ratios, VAR, etc.

Utilize for setting the level of risk appetite,
identifying the appropriateness of ourbusiness planning, and assessing our internal
capital adequacy*2*1. Examples would include: an increase in provision for loan losses due todeterioration of credit; and a sharp deterioration in the profit and loss
status of stockholdings due to a stock market decline*2. In assessing our internal capital adequacy, we add the scenario based on
historical stress events, etc., to the scenario developed under process1
above

Credit Risk Management
Basic Approach
We define credit risk as the Group’s exposure to the risk oflosses that may be incurred due to a decline in, or total loss of,the value of assets (including off-balance-sheet instruments),
as a result of deterioration in obligors’ financial position. We
have established the methods and structures necessary forgrasping and managing credit risk, which has become increasingly complex due to financial deregulation, internationalizationand the growing sophistication of transactions. MHFG manages credit risk for the Group as a whole. More specifically, we
have adopted two different but mutually complementary
approaches in credit risk management. The first approach is“credit management,” in which we manage the process foreach individual transaction and individual obligor from execution until collection, based on our assessment of the credit
quality of the customer. Through this process, we curb losses
in the case of a credit event. The second is “credit portfolio
management,” in which we utilize statistical methods to assess
the potential for losses related to credit risk. Through thisprocess, we identify credit risks and respond appropriately.
Credit Risk Management Structure
Risk Management of MHFG
•OurCredit
Board of Directors determines the Group’s basic matterspertaining to credit risk management. In addition, the Risk
Management Committee of MHFG discusses and coordinates
matters relating to basic policies and operations in connection
with credit risk management and matters relating to credit risk
monitoring for the Group. Under the control of the Group Chief97

Risk Management Structure

Risk Officer of MHFG, the Risk Management Division and theCredit Risk Management Division jointly monitor, analyze andsubmit suggestions concerning credit risk and formulate andexecute plans in connection with basic matters pertaining tocredit risk management.
Risk Management at Our Core Group Companies•OurCredit
core group companies manage their credit risk according

to the scale and nature of their exposures in line with basic
policies set forth by MHFG. The Board of Directors of eachcompany determines important matters pertaining to credit
risk management. The respective business policy committeesof MHBK and MHTB (the two banks) are responsible for discussing and coordinating overall management of their individual credit portfolios and transaction policies towards obligors.
The Chief Risk Officer of each bank is responsible for mattersrelating to planning and implementing credit risk management.
The credit risk management division of each bank is responsible for planning and administering credit risk management andconducting credit risk measuring and monitoring, and such
division regularly presents reports regarding its risk management situation to MHFG. Each credit division determines policies

and approves/disapproves individual transactions in terms ofcredit review, credit management and collection from customers in accordance with the lines of authority set forth byeach bank. In addition, each bank has established internal
audit divisions that are independent of the business divisions inorder to ensure appropriate credit risk management.
Individual Credit Management
Codes•TheCredit
basic code of conduct for all of our officers and employ-ees engaged in the credit business is set forth in our credit
code. Seeking to fulfill the bank’s public and social role, ourbasic policy for credit business is determined in light of fundamental principles focusing on public welfare, safety, growthand profitability.
Rating System•OneInternalof the most important elements of the risk management

infrastructure of the two banks is the use of an internal rating
system that consists of credit ratings and pool allocations.
Credit ratings consist of obligor ratings which represent thelevel of credit risk of the obligor, and transaction ratings which

Connection between Obligor Ratings, Definition of Obligor Classifications of Self-Assessments, Claims Disclosed under the
FRA and Non-Accrual, Past Due & Restructured Loans
Definition of
ObligorObligor Classifi- Ratings
cations of Self- (Major
Assessment Category)
A1–A3

Obligors whose certainty of debt fulfillment
is very high, hence their level of credit risk is
excellent.

B1–B2

Obligors whose certainty of debt fulfillment poses
no problems for the foreseeable future, hence
their level of credit risk is sufficient.

C1–C3

Obligors whose certainty of debt fulfillment
and their level of credit risk pose no problems for the foreseeable future.

D1–D3

Obligors whose current certainty of debt fulfillment poses no problems, however, their resistance to future environmental changes is low.

NormalObligors

E1
Watch
Obligors

Intensive
Control
Obligors

98

Definition of Ratings

E2 R

F1

Category I(NonCategorized)

Substantially
Bankrupt
Obligors

G1

Obligors who have not yet gone legally orformally bankrupt but who are substantiallybankrupt because they are in serious financial difficulties and are not deemed to becapable of restructuring.

Bankrupt
Obligors

H1

Obligors who have already gone bankrupt,
from both a legal and/or formal perspective.

Category III

Claims Non-Accrual,
Category IV
Disclosed Past Due &(Nonunder the
RestrucCollateralized)
FRA
tured Loans

All credit given
to Normal
Obligors.

Obligors who require close watching going
forward because there are problems with
their borrowings, such as reduced or suspended interest payments, problems withfulfillment such as de facto postponements
of principal or interest payments, or problems with their financial positions as aresult of their poor or unstable businessconditions.
Obligors who are not yet bankrupt but are in
financial difficulties and are deemed to bevery likely to go bankrupt in the future
because they are finding it difficult to makeprogress in implementing their management
improvement plans (including obligors who
are receiving ongoing support from financial
institutions).

Category II

NormalClaimsCredit given to
Watch Obligors
other than thoseincluded in
Category I.

Credit to
obligors whichhas pledged
collateral or iscovered byguarantees,considered ofhigh quality,
such as deposit
collateral.

Credit to obligors which iscovered by general collateral,such as realestate andguarantees.

Claims forSpecialAttention

Credit given to
Intensive Control Obligors
other than thoseincluded in Category I and Category II.
The difference
between theassessed value andmarket value of collateral on credit toBankrupt and Substantially Bankrupt
Obligors (i.e., theportion of loans forwhich final collection
problems or losses
are anticipated).

Restructured
Loans
Loans Past Duefor 3 Months or
MoreClaims with
Collection
Risk
Non-Accrual
Delinquent
Loans
Credit to Bankrupt and Substantially Bankrupt
Obligors, otherthan those in Category I, Category
II and Category III(credit that isjudged to be
unrecoverable orwithout value).

ClaimsagainstBankrupt andSubstantially
Bankrupt
Obligors, and Loans toBankrupt
equivalent
Obligorsrepresent the possibility of ultimately incurring losses related toeach individual claim by taking into consideration the nature of
any collateral or guarantee and the seniority of the claim. In
principle, obligor ratings apply to all obligors and are subject toregular reviews at least once a year to reflect promptly the fiscal period end financial results of the obligors, as well as special reviews as required whenever the obligor’s credit standing
changes. This enables the two banks to monitor both individual
obligors and the status of the overall portfolio in a timely fashion. Because we consider obligor ratings to be an initial phaseof the self-assessment process regarding the quality of ourloans and off-balance-sheet instruments, such obligor ratings
are closely linked to the obligor classifications and are an integral part of the process for determining the reserves for loan
losses and write-offs in our self-assessment of loans and offbalance-sheet instruments. (Please refer to Connection
between Obligor Ratings, Definition of Obligor Classifications of
Self-Assessments, Claims Disclosed under the FRA and NonAccrual, Past Due & Restructured Loans).
Pool allocations are applied to small claims that are lessthan a specified amount by pooling customers and claims withsimilar risk characteristics and assessing and managing therisk for each such pool. We efficiently manage credit risk andcredit screening by dispersing a sufficient number of small
claims within each pool. We generally review the appropriateness and effectiveness of our approach to obligor ratings andpool allocations once a year in accordance with predetermined
procedures.
Reserves for loan losses, Off-balance-sheet• Self-assessment,
Instruments and Write-offs

We conduct self-assessment of assets to ascertain the statusof assets both as an integral part of credit risk management
and in preparation for appropriate accounting treatment,
including reserves for loan losses and off-balance-sheet instruments and write-offs. During the process of self-assessment,
obligors are categorized into certain groups taking into consideration their financial condition and their ability to make payments, and credit ratings are assigned to all obligors, in principle, to reflect the extent of their credit risks. The related assets
are then categorized into certain classes based on the risk of
impairment. This process allows us to identify and control theactual quality of assets and determine the appropriate
accounting treatment, including reserves for loan losses andoff-balance-sheet instruments and write-offs. Specifically, thecredit risk management division of each bank is responsible forthe overall control of the self-assessment of assets of therespective banks, cooperating with the administrative divisions
specified for each type of asset, including loan portfolios andsecurities, in executing and managing self-assessments.
Credit Review•Preventionof new non-performing loans through routine credit

management is important in maintaining the quality of our overall loan assets. Credit review involves analysis and screening ofeach potential transaction within the relevant business division.
In case the screening exceeds the authority of the division, thecredit division at headquarters carries out the review. The credit division has specialist departments for different industries,
business sizes and regions, carries out timely and specialized
examinations based on the characteristics of the customer andits market, and provides appropriate advice to the businessdivision. In addition, in the case of obligors with low obligor ratings and high downside risks, the business division and credit
division jointly clarify their credit policy and in appropriate cases
assist obligors at an early stage in working towards credit
soundness.
Restructuring, Collection and Disposal of• Corporate
Non-performing Loans

With respect to collection and disposal of non-performing
loans, our specialist unit maintains central control and pursues
corporate restructuring or collection efforts, as appropriate,toward taking the non-performing loans off-balance.
Specifically, we believe that supporting the restructuring efforts
of corporations is an important role for financial institutions,and we support corporations undergoing restructuring byreviewing business plans, advising on restructuring methods
and utilizing corporate restructuring schemes such as divestitures and mergers and acquisitions, taking advantage of ourgroup-wide resources. These efforts have been steadily producing satisfactory results. In addition, we work on final disposal of non-performing loans efficiently and swiftly by conducting bulk sales and by utilizing Mizuho Servicing, our subsidiary that specializes in performing debt collection services

Method for Reserves and Write-Offs
Normal Obligors

Calculate the value of estimated loss based on the probability of failure over the coming year for loans by obligor rating and appropriate it for the
General Reserve for Possible Losses on Loans.

Watch Obligors

Calculate the estimated loss on loans based on the probability of failure over the next three years and appropriate it for the General Reserve for Possible Losses on Loans. Further, in regard to Special Attention Obligors, for obligors with large claims more than a certain amount, if the cash flowfrom the return of principal and interest payments can reasonably be estimated, set up a reserve under the DCF method.

Intensive Control
Obligors

Provide an amount for Specific Reserve for Possible Losses on Loans as calculated by one of the following methods after deducting amounts anticipated to be recoverable from the sale of collateral held against the claims and from guarantors of the claims: a) an amount calculated based on theoverall ability of the obligor to pay, or b) the estimated loss calculated on the basis of the balance and the probability of failure over the next three
years.
Further, for obligors with large claims more than a certain amount, if the cash flow from the return of principal and interest payments can reasonably be estimated, set up a reserve under the DCF method.

Substantially Bankrupt
Obligors
Bankrupt Obligors

Provide the entire balance after deducting amounts anticipated to be recoverable from the sale of collateral held against the claims and from guarantors of the claims for Specific Reserve for Possible Losses on Loans, or write-off the entire balance.

99

Risk Management Structure

for our group companies.
In the case of debt forgiveness, we examine the borrower’s
condition carefully and make a determination based on thepossible impact on the interests of shareholders and depositors. We provide debt forgiveness as per industry guidelinesthat are shared among members of the Japanese Bankers
Association.
Portfolio Management
Risk Measurement•
We use statistical methods to manage the possibility of losses

by measuring the expected average loss for a one-year risk
horizon (Expected Loss) and the maximum loss within a certain
confidence interval (“credit Value-at-Risk (VaR)”). The difference
between expected loss and credit VaR is measured as thecredit risk amount (Unexpected Loss).
In establishing transaction spread guidelines for credit transactions, we aim to ensure an appropriate return from the transaction in light of the level of risk by utilizing credit cost data as areference. Also, we monitor our credit portfolio from various
perspectives and set guidelines noted below so that losses
incurred through a hypothetical realization of the full credit VaR
would be within the amount of risk capital and loan loss
reserves.

Loss Distribution
Frequency
Average

This amount depends on theconfidence interval. For
example, if the confidence
interval is set at 99%, it is the
9,900th smallest loss figureout of 10,000 trials.

Loss AmountCredit VaR
Expected
Loss

Unexpected Loss

Control Methods•WeRiskrecognize two types of risk arising from allowing unexpect-

ed loss to become too large. One type is “credit concentration
risk,” which stems from granting excessive credit to certain
individual counterparties or corporate groups. The other type is“chain-reaction default risk,” which arises from granting excessive credit to certain areas, industrial sectors and other groupings. We make appropriate management to control these risks
in line with our specific guidelines for each. The individual risk
management divisions of the two banks are responsible formonitoring adherence to these guidelines and reporting to theirrespective business policy committees (please refer to
Allocation of Risk Capital and Control of Credit Risk).

Market and Liquidity Risk Management
Basic Approach
We define market risk as the risk of losses incurred by theGroup due to fluctuations in interest rates, stock prices andforeign exchange rates. Our definition includes the risk of losses incurred when it becomes impossible to execute transactions in the market because of market confusion or losses arising from transactions at prices that are significantly less favorable than usual. We define liquidity risk as the risk of losses
arising from funding difficulties due to a deterioration in our
financial position that makes it difficult for us to raise necessary
funds or that forces us to raise funds at significantly higher
interest rates than usual. MHFG manages market and liquidity
risk for the Group as a whole.
Market Risk Management Structure
Risk Management of MHFG
•OurMarket
Board of Directors determines basic matters pertaining tomarket risk management policies. The Risk Management
Committee of MHFG broadly discusses and coordinates matters relating to basic policies in connection with market risk
management, market risk operations and market risk monitoring. The Group Chief Risk Officer of MHFG is responsible formatters relating to market risk management planning andoperations.
The Risk Management Division of MHFG is responsible for

Allocation of Risk Capital and Control of Credit Risk
Credit VaR

Allocation of risk capital

Credit concentration risk

Chain reaction default risk
3 Geographical area/country-based

1 Individual company credit guidelines
2 Corporate group-based credit

Controlguidelines

MHBK: Sets 1 , 2 , 3 , 4
MHTB: Sets 1 , 2 , 4100

Equivalent to credit concentration risk amounts

credit guidelines
4 Industrial sector-based credit

guidelines

Equivalent to chain reaction default risk amounts

monitoring market risk, reports and analyses, proposals,setting limits and guidelines, and formulating and implementing plans relating to market risk management. The Risk
Management Division assesses and manages the overallmarket risk of the Group. It also receives reports from our coregroup companies on their market risk management that enable
it to obtain a solid grasp of the risk situation, submitting reports
to the President & Group CEO on a daily basis and to our
Board of Directors and the Executive Management Committeeof MHFG on a regular basis.
To manage market risk, we set limits that correspond to risk
capital allocations according to the risk profiles of our coregroup companies and thereby prevent market risk fromexceeding our ability to withstand losses based on our financial
strength represented by capital, etc. The amount of risk capital
allocated to market risk corresponds to VaR and additionalcosts that may arise in order to close relevant positions. For
trading and banking activities, we set limits for VaR and forlosses. For banking activities, we set position limits based oninterest rate sensitivity as needed.
These limits are discussed and coordinated by the Risk
Management Committee, discussed further by the Executive
Management Committee, then determined by the President &Group CEO. Various factors are taken into account including
business strategies, historical limit usage ratios, risk-bearing
capacity (profits, total capital and risk management systems),
profit targets and the market liquidity of the products involved.
Market Risk Management at Our Core Group Companies•MHBK,MHTB and MHSC, which account for most of theGroup’s exposure to market risk, have formulated their basic
policies in line with the basic policies determined by MHFG.
Their Boards of Directors determine important matters relating
to market risk management while their Chief Executive Officers
are responsible for controlling market risk. Their respective
business policy committees, including their ALM & Market Risk
Management Committees, are responsible for overall discussion and coordination of market risk management. Specifically,
these committees discuss and coordinate matters relating tobasic asset and liability management policies, risk planning andmarket risk management. The Chief Risk Officer of each subsidiary is responsible for matters pertaining to planning andimplementing market risk management. Based on a common
group risk capital allocation framework, the above-mentioned
companies manage market risk by setting limits according to
the risk capital allocated to market risk by MHFG.
These companies have established specialized companywide market risk management divisions to provide integrated
monitoring of market risk, submit reports, analyses and proposals, set limits and formulate and implement plans relating tomarket risk management. The risk management divisions ofeach company submit reports on the status of market risk
management to their respective Chief Executive Officers andtop management on a daily basis, and to their Board of
Directors and Executive Management Committee on a regularbasis. They also provide regular reports to MHFG. To provide asystem of mutual checks and balances in market operations,they have established middle offices specializing in risk management that are independent of their front offices, which
engage in market transactions, and their back offices, which
are responsible for book entries and settlements. When VaR is
not adequate to control risk, the middle offices manage risk
using additional risk indices, carry out stress tests and set stop
loss limits as needed. They monitor their market liquidity risk forindividual financial products in the market while taking turnoverand other factors into consideration.
Status of MHFG’s Market Risk
Risk
•WeValue-at
use the VaR method, supplemented with stress testing, as

our principal tool to measure market risk. The VaR methodmeasures the maximum possible loss that could be incurred
due to market movements within a certain time period (or holding period) and degree of probability (or confidence interval).
Trading Activities
VaR related to our trading activities is based on the following:• variance co-variance model for linear risk and Monte-Carlosimulation for non-linear risk, which are simply aggregatedto determine total risk;• confidence interval: one-tailed 99.0%;• holding period of one day; and• historical observation period of one year.
The following tables show the VaR related to our trading
activities by risk category for the fiscal years ended March 31,
2013, 2014 and 2015 and as of March 31, 2013, 2014 and2015:

VaR by Risk Category (Trading Activities)(billions of yen)
Fiscal 2012
Interest rate
Foreign exchange
Equities
Commodities
Total

Daily average

Maximum

Minimum

At March 31

1.6
2.3
0.5
0.0
3.4

2.2
3.4
0.9
0.0
4.6

1.1
1.1
0.1
0.0
2.6

1.2
2.7
0.4
0.0
3.5

Daily average

Maximum

Minimum

At March 31

2.0
4.1
1.0
0.0
5.7

2.7
5.6
3.1
0.0
7.4

1.5
1.1
0.2
0.0
3.3

1.6
4.8
0.4
0.0
5.4

Daily average

Maximum

Minimum

At March 31

1.8
3.0
0.5
0.0
4.4

2.6
5.8
1.3
0.0
7.1

1.4
1.6
0.2
0.0
3.1

1.5
5.6
0.3
0.0
6.5

Fiscal 2013
Interest rate
Foreign exchange
Equities
Commodities
Total

Fiscal 2014
Interest rate
Foreign exchange
Equities
Commodities
Total

101

Risk Management Structure

The following graph shows VaR figures of our trading activities for the fiscal year ended March 31, 2015:

Fiscal 2014 VaR (Banking Activities)(VaR: billions of yen)
400

(%)
0.4

(VaR: billions of yen)
8

300

0.3

7

200

0.2

Fiscal 2014 VaR (Trading Activities)

6
5

0.1

100
VaR
Interest rate on five-year government bonds

4
3

04/01/2014
04/15/2014
04/29/2014
05/13/2014
05/27/2014
06/10/2014
06/24/2014
07/08/2014
07/22/2014
08/05/2014
08/19/2014
09/02/2014
09/16/2014
09/30/2014
10/14/2014
10/28/2014
11/11/2014
11/25/2014
12/09/2014
12/23/2014
01/06/2015
01/20/2015
02/03/2015
02/17/2015
03/03/2015
03/17/2015
03/31/2015
04/01/2014
04/15/2014
04/29/2014
05/13/2014
05/27/2014
06/10/2014
06/24/2014
07/08/2014
07/22/2014
08/05/2014
08/19/2014
09/02/2014
09/16/2014
09/30/2014
10/14/2014
10/28/2014
11/11/2014
11/25/2014
12/09/2014
12/23/2014
01/06/2015
01/20/2015
02/03/2015
02/17/2015
03/03/2015
03/17/2015
03/31/2015

1
0

0.0

0

2

The following table shows the VaR figures relating to ourbanking activities for the fiscal years indicated:

The following table shows VaR figures of our trading activities for the fiscal years indicated:

VaR (Banking Activities)(billions of yen)
Fiscal 2012

Fiscal 2013

Fiscal 2014

ChangeAs of fiscal year end

215.9

281.7

325.6

43.8

Maximum

297.9

300.7

349.0

48.3

Fiscal 2014 Change

Minimum

213.3

186.8

265.0

78.2

Average

246.3

253.5

307.9

54.4

VaR (Trading Activities)(billions of yen, except number of cases)
Fiscal 2012 Fiscal 2013
As of fiscal year end

3.5

5.4

6.5

1.1

Maximum

4.6

7.4

7.1

(0.3)

Minimum

2.6

3.3

3.1

(0.2)

Average

3.4

5.7

4.4

(1.2)

1

0

2

2

The number of cases where
losses exceeded VaR

Non-Trading Activities
The VaR related to our banking activities is based on the same
conditions as those of trading activities, but the holding period
is one month.
The following graph shows the VaR related to our banking
activities excluding our strategically-held equity portfolio for theyear ended March 31, 2015.

Characteristics of VaR Model
VaR is a commonly used market risk management technique.
However, VaR models have the following shortcomings:• By its nature as a statistical approach, VaR estimates possible losses over a certain period at a particular confidence
level using past market movement data. Past market
movement, however, is not necessarily a good indicator of
future events, particularly potential future events that are
extreme in nature.
• VaR may underestimate the probability of extreme market
movements.
• The use of a 99.0% confidence level does not take accountof, nor makes any statement about, any losses that mightoccur beyond this confidence level.
• VaR does not capture all complex effects of various risk
factors on the value of positions and portfolios and could
underestimate potential losses.
Sensitivity Analysis•WeInterest
also conduct interest sensitivity analyses of interest risk,

our main source of market risk. The following table shows sensitivity to yen interest risk in our banking activities as of thedates indicated. Interest rate sensitivity (10 BPV ) shows how
much net present value varies when interest rates rise by 10
basis points (0.1%), and it explains the impact of interest rate
movements on net present value when short- and long-term
interest rates behave differently.

102

Interest Sensitivity by Maturity
At March 31, (billions of yen)
2013

2014

Up to one year

(7)

(2)

2015 Change(1)1From one to five years

(56)

(47)

(35)

11

Over five years

(35)

(12)

(14)

(2)

Total

(99)

(62)

(51)

11

Value-at-Risk•TheStressedstressed value-at-risk (“stressed VaR”) measurement isbased on a continuous 12-month period of significant financial
stress. Stressed VaR related to our trading activities is basedon the following:• variance co-variance model for linear risk and Monte-Carlosimulation for non-linear risk, which are simply aggregatedto determine total risk;• confidence interval: one-tailed 99.0%;• holding period of one day; and• historical observation period of one year of significant
financial stress.
The following table shows stressed VaR figures of our trading activities for the fiscal years indicated:

Stressed VaR (Trading Activities)(billions of yen)
Fiscal 2012

Fiscal 2013

Fiscal 2014

ChangeAs of fiscal year end

9.2

12.6

20.2

7.5

Maximum

12.0

15.3

24.8

9.5

Minimum

5.0

8.3

8.5

0.2

Average

8.0

11.6

13.2

1.5

Equity Portfolio Management Activities•WeStrategically-heldtake the market risk management approach with use of

VaR and risk indices for strategically-held equity portfolio management activities as well as for trading activities and nontrading activities. The risk index for strategically-held equity
portfolio management for the fiscal year ended March 31,
2015, consisting of the sensitivity of the strategically-heldequity portfolio to a 1% change in the equity index of TOPIX,
was ¥37.4 billion.
Back Testing and Stress Testing•In order
to evaluate the effectiveness of market risk measure-ments calculated using the value-at-risk method, we carry out
regular back tests to compare value-at-risk with assumptive
profits and losses. Assumptive profits and losses accounts forgeneral market risk. The following graph shows daily value-atrisk of trading activities for the fiscal year ended March 31,
2015, and the corresponding paired distribution of profits andlosses. We had two cases where losses exceeded value-at-risk
during the period. In addition, we conduct evaluations of theassumptions related to the value-at-risk models. Based on thenumber of times losses exceeded VaR through back testing

and the results of the evaluation of the model assumptions, wewill make adjustments to the models as appropriate. Changes
to fundamental portions of the VaR models are subject to theapproval of our Group Chief Risk Officer.

Fiscal 2014 Back Testing
Assumptive profit or loss (billions of yen)
8
7
6
5
4
3
2
1
0
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
0
1
2
3

4

5

6

7
8
VaR (billions of yen)

Note: We conduct our back testing and assess the number of cases where
losses exceed VaR based on a 250 business day year. The expected
average number of instances where one-day trading losses exceeded
VaR at the 99% confidence level is 2.5.

Because the value-at-risk method is based on statisticalassumptions, we conduct stress testing to simulate the levelsof losses that could be incurred in cases where the market
moves suddenly to levels that exceed these assumptions. The
stress testing methods we use include the calculation of losseson the basis of the largest fluctuations occurring over a periodof more than five years and the calculation of losses based onmarket fluctuations occurring during historical market events.
In addition, we conduct stress testing based on a sharp dropin the price of securitization and other products due to diminished market liquidity. The table below shows the assumed
maximum loss results of stress testing in trading activities using
the methods described above:

Fiscal 2014 Stress Testing
At March 31, 2015 (billions of yen)
Assumed maximum loss result calculated by stress testing(holding period: one month)

69.2

Assumed maximum loss result calculated by stress testing basedon a sharp drop in the price of securitization and other products
due to diminished market liquidity (holding period: one year)

9.0

Criteria•AsOutlier
part of the capital adequacy requirements under Basel

Regulatory Framework, the losses arising from a banking
book in hypothetical interest rate shock scenarios under certain stress conditions are calculated and compared with103

Risk Management Structure

Broadly-defined capital. If the interest rate risk of the banking
book leads to an economic value decline of more than 20%
of Broadly-defined capital, we will be deemed an “outlier” andmay be required to reduce the banking book risk or adopt
other responses. We measure losses arising from our banking book each month as a part of our stress tests.
The table below shows the results of calculations of losses
in the banking book in cases where interest rate fluctuations
occur under stress conditions. The results of calculations oflosses in the banking book show that they are 5.5% ofBroadly-defined capital. Because the amount of risk on thebanking book is therefore well under the 20% threshold andwithin controllable limits, we do not fall under the “outlier” category. The loss ratio to capital increased from the previous
fiscal year due mainly to the increase of interest rate risk.

multiplication factor as used in the bullet point above.
The following table shows total market risk equivalent as ofthe dates indicated calculated using the standardized measurement method and internal models:

Fiscal 2014 Market Risk Equivalent
At March 31, (billions of yen)
2014

2015

ChangeCalculated using standardized
measurement method

62.8

78.8

15.9

Calculated using internal models

170.6

199.0

28.4

Total market risk equivalent

233.5

277.9

44.3

Note: VaR and stressed VaR used to calculate market risk equivalent is basedon the following:• variance co-variance model for linear risk and Monte-Carlo simulation
for non-linear risk, which are simply aggregated to determine total risk;• confidence interval: one-tailed 99.0%;• holding period of 10 days; and• historical observation period of one year.

Fiscal 2014 Results of Calculations under the Outlier
Framework(billions of yen)Amountof loss

Broadlydefined
capitalLoss ratio
to capital

At March 31, 2013

499.1

8,344.5

5.9%

At March 31, 2014

386.6

8,655.9

4.4%

At March 31, 2015

529.2

9,508.4

5.5%

Effect of yen interest rate

77.9

Effect of dollar interest rate

364.7

Effect of euro interest rate

69.3

Notes:1. In the above results of calculations of losses, a part of demand deposits without fixed intervals for amending applicable interest rates isdeemed core deposits and is treated accordingly in the calculation.
2. For the interest rate shock scenario used in connection with theabove figures, we generate annual rate fluctuation data for five years
derived from daily raw historical interest rate data of the past six
years and then apply the actual fluctuation data, which show a risein interest rates, at a 99.0% confidence level to the shock scenario.

Market Risk Equivalent•In order
to calculate the amount of capital necessary to meetthe capital requirements relating to market risk (the “market risk
equivalent”), we apply internal models to calculate general market risk (risks related to factors that apply generally to the market, e.g., interest rates, foreign exchange rates) and the standardized measurement method to calculate specific risks (risks
other than general market risk, e.g., credit quality and market
liquidity of an individual security or instrument). In addition, ourinternal models are applied to trading transactions with market
liquidity based on the relevant holding period.
Under the internal models, the market risk equivalent isexpressed as the sum of;
The higher of (i) VaR on the calculation date and (ii) the average of VaR for the preceding 60 business days (including the
calculation date) multiplied by a multiplication factor ranging
from 3.00 to 4.00 that is determined based on the number oftimes VaR is exceeded upon back testing; andThe higher of (i) stressed VaR on the calculation date and (ii)the average of stressed VaR for the preceding 60 businessdays (including the calculation date) multiplied by the same104

Liquidity Risk Management Structure
Risk Management of MHFG•OurLiquidity
Board of Directors determines basic matters pertaining toliquidity risk management policies. The Risk Management
Committee of MHFG broadly discusses and coordinates matters relating to basic policies in connection with liquidity risk
management, operations, monitoring and proposes responses
to emergencies such as sudden market changes. The Group
Chief Risk Officer of MHFG is responsible for matters relating
to liquidity risk management planning and operations. The Risk
Management Division of MHFG is responsible for monitoring
liquidity risk, reports and analyses, proposals, and formulating
and implementing plans relating to liquidity risk management.
In addition, the Group Chief Financial Officer of MHFG isadditionally responsible for matters relating to planning andrunning cash flow management operations, and the Financial
Planning Division is responsible for monitoring and adjusting
the cash flow management situation and for planning andimplementing cash flow management to maintain appropriate
funding liquidity. Reports on the liquidity risk management are
submitted to the Risk Management Committee, the Executive
Management Committee and the President & Group CEO on aregular basis.
To manage liquidity risk, we use indices pertaining to cash
flow, such as limits on funds raised in the market. Limits on liquidity risk set for Japanese yen and foreign currencies taking
into account characteristics and strategies of each core groupcompanies, are discussed and coordinated by the Risk
Management Committee, discussed further by the Executive
Management Committee and determined by the President &Group CEO. In addition, limits on liquidity risk are set for eachcurrency at core group companies.
We have established a group-wide framework of liquidity
risk stage such as “Normal,” “Anxious” and “Crisis,” whichreflects funding conditions. In addition, we set Early Warning
Indicators (“EWIs”) and monitor on a daily basis to manage

liquidity conditions. As EWIs, we select stock prices, credit ratings, amount of liquidity reserve assets such as Japanese government bonds, our funding situations and so on.
We have established a liquidity contingency funding plan for
emergency situations which are deemed to fall into the“Anxious” or “Crisis.” In emergency situations, we will consider
measures such as a reduction in the amount of investments
made, an expansion of funding from financial markets anddeposits, the sale of investment securities and borrowings fromthe central bank.
In order to evaluate the sufficiency of liquidity reserve assets
and the effectiveness of liquidity contingency funding plan, we
conduct stress testing under market-wide, idiosyncratic andcombined scenario. Furthermore, we utilize stress testing forevaluating the appropriateness of our annual funding plan.
Liquidity Risk Management at Our Core Group Companies•MHBK,MHTB and MHSC have formulated their basic policies

in line with the basic policies determined by MHFG. Their
Boards of Directors determine important matters relating to liquidity risk management while their Chief Executive Officers are
responsible for controlling liquidity risk. Their respective business policy committees, including their ALM & Market Risk
Management Committees, are responsible for overall discussion and coordination of liquidity risk management. Specifically,
these committees discuss and coordinate matters relating torisk planning, cash flow management planning and proposes
responses to emergencies such as sudden market changes.
The Chief Risk Officer is responsible for matters relating toliquidity risk management planning and operations and thesenior executives of the ALM and trading units are responsible for matters pertaining to planning and conducting cash
flow management.
The methodologies used for ensuring precise control of liquidity risk include the formulation of management indices pertaining to cash flow, such as limits on funds raised in the market. As with MHFG, the above-mentioned companies haveestablished liquidity risk stage, such as “Normal” to “Anxious”
and “Crisis,” which reflects funding conditions and have established liquidity contingency funding plan for emergency situations which are deemed to fall into the “Anxious” or “Crisis”
categories.
Each subsidiary has adopted stringent controls that callfor the submission of reports on liquidity risk management
and cash flow management to the ALM & Market Risk
Management Committee and other business policy committees, the Executive Management Committee and the Chief
Executive Officer of each subsidiary.

regulatory change risk and reputational risk. We have determined risk management policies for each kind of risk. MHBK,MHTB, MHSC and TCSB respectively manage operational riskin an appropriate manner pursuant to risk management policies determined by MHFG.
Operational Risk Management Structure
MHFG, MHBK, MHTB, MHSC and TCSB share common
rules for data gathering, and we measure operational risk on aregular basis, taking into account possible future loss eventsand the changes in the business environment and internalmanagement.
We have established and are strengthening management
methods and systems to appropriately identify, assess, measure, monitor and control the operational risks which arise fromthe growing sophistication and diversification of financial operations and developments relating to information technology byutilizing control self-assessments and improving measurement
methods.
Glossary
Control Self-Assessments
An autonomous method of risk management in which risk inherent in operations is
identified and, after evaluating and monitoring risks that remains despite implementing risk control, the necessary measures are implemented to reduce risk.

Definition of Risks and Risk Management Methods
As shown in the table on page 106, we have defined eachcomponent of operational risk and we apply appropriate risk
management methods in accordance with the scale andnature of each risk.

Operational Risk Management
Basic Approach
We define operational risk as the risk of loss that we may
incur resulting from inadequate or failed internal processes,
people and systems or from external events. We recognizethat operational risk includes information technology risk, operations risk, legal risk, human resources risk, tangible asset risk,

105

Risk Management Structure

Definition

Information Technology
Risk

Principal Risk Management Methods• Identify and evaluate the risk by setting specific standards that need to be complied with
Risk that customers may suffer service disruptions,and implementing measures tailored based on evaluation results to reduce the risk.
or that customers or the group may incur losses• Ensure ongoing project management in systems development and quality control.
arising from system defects such as failures, faults,• Strengthen security to prevent information leaks.
or incompleteness in computer operations, or illegal• Improve effectiveness of emergency responses by improving backup systems and holding
or unauthorized use of computer systems.
drills.

Operations Risk

Risk that customers may suffer service disruptions,as well as the risk that customers or the group may
incur losses because senior executives or employees fail to fulfill their tasks properly, cause accidents
or otherwise act improperly.

• Establish clearly defined procedures for handling operations.
• Periodically check the status of operational processes.
• Conduct training and development programs by headquarters.
• Introduce information technology, office automation and centralization for operations.
• Improve the effectiveness of emergency responses by holding drills.

Legal Risk

• Review and confirm legal issues, including the legality of material decisions, agreements
Risk that the group may incur losses due to violationand external documents, etc.
of laws and regulations, breach of contract, entering• Collect and distribute legal information and conduct internal training programs.
into improper contracts or other legal factors.
• Analyze and manage issues related to lawsuits.

Human Resources Risk

Risk that the group may incur losses due to drain
or loss of personnel, deterioration of morale, inadequate development of human resources, inappropriate working schedule, inappropriate working andsafety environment, inequality or inequity in humanresource management or discriminatory conduct.

• Conduct employee satisfaction surveys.
• Understand the status of vacation days taken by personnel.
• Understand the status of voluntary resignations.

Tangible Asset Risk

Risk that the group may incur losses from damage
to tangible assets or a decline in the quality ofworking environment as a result of disasters, criminal actions or defects in asset maintenance.

• Manage the planning and implementation of construction projects related to the repair andreplacement of facilities.
• Identify and evaluate the status of damage to tangible assets caused by natural disasters,
etc., and respond appropriately to such damage.

Regulatory Change Risk

Risk that the group may incur losses due tochanges in various regulations or systems, such as
those related to law, taxation and accounting.

• Understand important changes in regulations or systems that have significant influence on
our business operations or financial condition in a timely and accurate manner.
• Analyze degree of influence of regulatory changes and establish countermeasures.
• Continuously monitor our regulatory change risk management mentioned above.

Reputational Risk

Risk that the group may incur losses due to damage to our credibility or the value of the Mizuho
brand when market participants or others learn
about, or the media reports on, various adverse
events, including actual materialization of risks orfalse rumors.

• Establish framework to identify and manage, on an integrated basis, information that may
have a serious impact on group management and respond to such risk in a manner appropriate to its scale and nature.
• Swiftly identify rumors and devise appropriate responses depending on the urgency andpossible impact of the situation to minimize possible losses.

We also recognize and manage Information Security Risk and Compliance Risk, which constitute a combination of more than one of the above components of operational risk,
as operational risk.

Measurement of Operational Risk Equivalent•We have adopted the Advanced Measurement Approach
Implementation of Advanced Measurement Approach(AMA) from September 30, 2009, for the calculation of operational risk equivalent in association with capital adequacy ratios
based on Basel II. However, we use the Basic Indicator
Approach (BIA) for entities that are deemed to be less important in the measurement of operational risk equivalent and forentities that are preparing to implement the AMA. The measurement results under the AMA are used not only as the operational risk equivalent in the calculation of capital adequacy
ratios but also as Operational VAR for internal risk management purposes for implementing action plans to reduce operational risk, etc.
Outline of the AMA•Outlineof Measurement System

We have established the model by taking account of four elements: internal loss data; external loss data; scenario analysis
and business environment; and internal control factors(BEICFs). We calculate the operational risk equivalent amountby estimating the maximum loss using a 99.9th percentile onetailed confidence interval and a one-year holding period etc.,

106

employing both internal loss data (i.e., actually experienced
operational loss events) and scenario data to reflect unexperienced potential future loss events in the measurement.
In the measurement of operational risk equivalent as ofMarch 31, 2015, we did not exclude expected losses and also
did not recognize the risk mitigating impact of insurance. In
addition, we did not take into account the events related tocredit risk in measuring operational risk equivalent.
Outline of Measurement Model
Operational risk equivalent is calculated as a simple sum of
those related to the seven loss event types defined by Basel II,
large-scale natural disasters and litigation. In the measurement ofoperational risk equivalent as of March 31, 2015, we did notreflect the correlation effects among operational risk related toeach of the seven loss event types.
Operational Risk by the Loss Event Type
Loss Distribution (Compound Poisson Distribution) Approach(LDA) is adopted for the calculation of operational risk. LDA is
based on the assumption that Poisson Distribution applies tothe occurrence frequency of operational risk events, and loss
severity is expressed through a separate distribution.
Operational risk is calculated for each of the seven loss event

occurrence, as opposed to estimating Frequency Distribution
and Loss Severity Distribution.
Operational Risk of Litigation
Each litigation is converted into data according to the profile ofthe individual litigation to which Monte-Carlo simulation isapplied, as opposed to estimating Frequency Distribution and
Loss Severity Distribution. In the measurement process, we
assume that final decisions will be made on all litigation within
one year.
Verification
We confirm the appropriateness of the measurement model byverifying it, in principle, semi-annually.

types employing both internal loss data, based on our actual
experience as operational loss events and scenario data.
Scenario data, expressed as numerical values of occurrence
frequency and loss severity, reflects external loss data and
BEICFs, in order to estimate unexperienced potential future
loss events (of low frequency and high severity).
Frequency Distribution and Severity Distribution are estimated employing the above mentioned internal loss data and scenario data, and Monte-Carlo simulations are then applied tothese distributions to measure operational risk. The detailed
steps of creation of scenario data are explained later in
Scenario Analysis.
Estimation of Frequency Distribution and Loss Severity
Distribution
Frequency Distribution is estimated by applying information on
occurrence frequency of both internal loss data and scenario
data to Poisson Distribution. Loss Severity Distribution is generated as the result of combining, through a statistical
approach (Extreme Value Theory), of the actual distribution forthe low severity distribution portion created by internal loss
data and another loss distribution (Log-normal Distribution or
Generalized Pareto Distribution) for the high severity distribution portion created by scenario data.
Operational Risk of Large-scale Natural Disasters
Monte-Carlo simulation is applied to the datasets expressed as
a combination of the probability of occurrence of large-scale
natural disasters and the probable loss amount in case of such

Scenario Analysis•Outlineof Scenario Analysis

In the process of scenario analysis, scenario data is created as
numerical values of occurrence frequency and loss severity
reflecting external loss data and BEICFs, in order to estimate
unexperienced potential future operational risk events (of low
frequency and high severity).
As for external loss data, we refer to data publicly reported
by domestic and overseas media, and such data are reflectedin the estimation of occurrence frequency and loss severity distribution in the process of scenario analysis. In addition, BEICFs
are utilized as indices to adjust occurrence frequency and loss
severity distribution in the process of scenario analysis.
We categorize scenario analysis into four approaches inaccordance with the characteristics of each loss event type

Outline of Measurement Model
Internal loss data

Business environment andinternal control factors

External loss data

Scenario analysis

Risk amount for litigation risk

Large-scale natural
disaster scenario data

Scenario data

Litigation data

Risk amount for large-scale
natural disasters

Risk amount for internal fraud
Risk amount for external fraud

Distribution of
scenario data

Unifieddistribution

Frequency
distribution
information

Frequency
distribution
information

Frequency
distribution
information

Loss severity
distribution
information

Loss severity
distribution
information

Loss severity
distribution
information

Loss distribution
Monte-Carlo simulation

Distribution ofinternal loss

Risk amount for employment
practices and workplace safety
Risk amount for customers,
products and business practices
Risk amount for damage tophysical assets

Risk amount

Risk amount for businessdisruption and system failure

Calculate risk amountby seven loss event
types defined by BIS

Risk amount for execution,delivery and process management

Operational VaR(Total operational risk amount)107

Risk Management Structure

and risk management structures.
Example of Scenario Data
Approach

Loss event type(s) to be applied

A

Internal fraud/External fraud/Customers, products & business practices/Execution, delivery & process management

B

Employment practices and workplace safety

C

Damage to physical assets

D

Business disruption and system failure

Final loss severity distribution
Severity range (billions of yen)
0.1

0.5

1

5

10

Total

Occurrence ratio (%)

40

30

15

10

5

100

Occurrence frequency (times)

0.4

0.3

0.15

0.1

0.05

1

Final occurrence frequency

At MHFG, loss event types to which Approach A is applied
account for a considerable amount of operational risk. The
detailed process of Approach A is explained below as a typicalexample of scenario analysis.
Setting Units for Scenario Analysis
In order to ensure completeness and sufficiency, we set units
that are commonly applied across group entities that adopt
AMA (hereinafter, the Group Entities) by referencing and categorizing risk scenarios recognized through control selfassessment, internal loss data of the Group Entities and external loss data, etc. Then each of the Group Entities selects theunit on which scenario analysis is conducted from the units
established on a group-wide basis in accordance with its business activities and operational risk profile.
Estimation of Occurrence Frequency
Basic occurrence frequency (once a year) is calculated for eachscenario analysis unit. If a certain scenario analysis unit has relevant internal loss data of a pre-determined threshold amountor above, its basic occurrence frequency is calculated basedon such data, and if not, the basic occurrence frequency (theoccurrence frequency per year of losses at or above a predetermined threshold) is calculated with reference to the situation of occurrence of internal loss data of less than the threshold amount and/or external loss data. The basic occurrence
frequency is then adjusted within a pre-determined range forthe purpose of reflecting the most recent BEICFs to determine
the final occurrence frequency.
Estimation of Loss Severity Distribution
In order to estimate loss severity distribution, we use a predetermined series of severity ranges. Basic loss severity distribution is calculated for each scenario analysis unit as an occurrence ratio (in percentile figures) of loss at each severity range
when losses at or above a pre-determined threshold occurred,with reference to transaction amount data, external loss data,etc. Then the basic severity distribution is adjusted, if necessary, from the viewpoint of statistical data processing to determine the final loss severity distribution.
Creation of Scenario Data
For each scenario analysis unit, scenario data is generated asa series of combinations of occurrence frequency per year ateach severity range, based on the final occurrence frequency
and the final loss severity distribution.

108(As of June 23, 2015)

Internal Audit StructureInternal Audit Management Structure
MHFG
Supervision,
Audit
Management

Basic Approach
Internal audits are designed as an integrated process, independent from other business operations, for evaluating theextent to which internal control achieves its objectives in key
areas, including appropriate risk management, efficient andeffective business operations, reliable financial reporting andcompliance with laws, regulations and internal rules. We conduct internal audits from an objective and comprehensive
standpoint, independent of operational reporting lines, andoffer advice and remedial recommendations in connection
with any problems that may be identified. Through thisprocess, internal audits assist the Boards of Directors of eachof our group companies to fulfill their managerial duties efficiently and effectively.
In line with the Basic Policy for Internal Audit establishedby MHFG, our core group companies conduct internal audits,which include the auditing of their respective subsidiaries. In
addition, with respect to the management of risks applicable
across the Group, we coordinate internal audits throughout
the Group to assess the risk management status of theGroup as a whole.

Board of Directors

Audit Committee

President & CEO(Group CEO)Internal Audit Committee(Chairman: President & CEO)Internal Audit Group

Everyorganizational
unitManagement
by MHFG

Internal Audit

Internal Audit
Division

Advice, guidance
and remedialrecommendations

Report theresults of internal
audit, etc.

MHBK, MHTB, MHSC and othercore group companies

Internal Audit Management Structure•OurMHFGInternal Audit Committee determines all important mattersconcerning internal audits. The committee is chaired by the
President & CEO and is independent of our other business
operations.
Our Internal Audit Committee monitors and manages internal audits at our core group companies through internal audit
reports submitted by such subsidiaries. Our Internal Audit
Committee discusses and makes decisions regarding internal
audits at our core group companies and submits the results,
together with the results of their examination of the internal
audit reports, to our Board of Directors.

Subsidiaries of the above group companies(As of June 23, 2015)

MHBK and MHTB•MHBKand MHTB have also established Internal Audit

Committees that are independent of their other business
operations.
The two banks have established internal audit divisions andcredit review divisions (Credit Assessment and Auditing Officeat MHTB) to conduct internal audits at their respective domestic and overseas business offices, head office divisions andgroup companies. Specifically, the internal audit divisions
assess the suitability and effectiveness of business activities
associated with compliance and risk management. The credit
review divisions (Credit Assessment and Auditing Office at
MHTB) audit credit ratings and the status of credit management in addition to auditing the self-assessment of assets toverify the accuracy and suitability of matters deemed necessary to assure the soundness of assets.
Other Core Group Companies•Othercore group companies have also established effective

and efficient internal audit structures adapted to the characteristics of their respective businesses.

109

Senior Executives

Mizuho Financial Group
Executive Officers as Defined in
the Companies Act

Katsunobu Motohashi

Kazuhisa Sawa

Managing Executive Officer

Managing Executive Officer

Head of Asset Management Unit

Yasuhiro SatoManaging Executive Officer

Deputy Head of Strategic Planning Group / Deputy
Head of Financial Control & Accounting Group / Deputy
Head of IT & Systems Group / Deputy Head ofOperations Group

President & Group CEO
Member of the Board of Directors(Representative Executive Officer)

Head of Retail Banking Unit / Head of Corporate
Banking Unit

Takashi KamadaGroup CEO

Keiichiro Ogushi

Tatsufumi Sakai
Managing Executive Officer

Shusaku Tsuhara

Head of International Banking Unit

Director and Senior Managing Executive Officer

Daisuke Yamada

Head of Compliance Group (Group CCO)Managing Executive Officer

Ryusuke Aya

Head of Corporate Banking Unit (Large Corporations)

Director and Managing Executive Officer

Kazuya Kobayashi

Head of Risk Management Group (Group CRO)Managing Executive Officer

Deputy Head of Personal Banking Unit / Deputy Headof Retail Banking Unit

Yoshihito BandoManaging Executive Officer
Deputy Head of Asset Management Unit

Shuichi Shimada
Managing Executive Officer

Head of Investment Banking Unit / Head of Transaction
Banking Unit

Deputy Head of International Banking Unit / Deputy
Head of Investment Banking Unit / Deputy Head of
Strategic Planning Group

Head of Financial Control & Accounting Group (Group CFO)

Kenji Tsujitsugu

Hidefumi Kobayashi

Koji Fujiwara

Managing Executive Officer

Managing Executive Officer

Head of Strategic Planning Group (Group CSO)

Head of Financial Institutions & Public Sector Business
Unit

Deputy Head of Financial Control & Accounting Group /Deputy Head of Risk Management Group

Hideyuki Takahashi

Satoshi Ishii

Yoshio Shimizu

Managing Executive Officer

Managing Executive Officer

Head of Human Resources Group (Group CHRO)

Deputy Head of International Banking Unit / Deputy
Head of Investment Banking Unit

Executive Officers as Defined in
Our Internal Regulations

Tatsuya Yamada

Director (Outside Director)

Masaaki Kono

Deputy Head of IT & Systems Group / Deputy Head ofOperations Group

Tetsuo Seki

Deputy President & Executive Officer

Junichi Shinbo
Director and Managing Executive Officer

Director and Managing Executive Officer

Director

Nobukatsu Funaki
Director

Mitsuo Ohashi

Director (Outside Director)

Takashi Kawamura

Deputy President (Western Japan (Kinki, Chugoku, andShikoku regions))

Managing Executive Officer

Tetsuhiro Sakamoto
Managing Executive Officer
Deputy Head of Human Resources Group

Director (Outside Director)

Hiroshi Suehiro
Senior Managing Executive Officer

Junichi Yamada

Tatsuo Kainaka

In charge of Compliance with US FBO Regulation

Managing Executive Officer

Director (Outside Director)

Haruki Nakamura

Deputy Head of Financial Institutions & Public Sector
Business Unit / Deputy Head of Markets Unit

Hirotake Abe

Managing Executive Officer

Director (Outside Director)

Joint Head of IT & Systems Group

Hiroko Ota

Koji Arita

Director (Outside Director)

Toshitsugu Okabe
Deputy President & Executive Officer(Representative Executive Officer)

Managing Executive Officer

Masuo Fukuda
Managing Executive Officer
Deputy Head of Corporate Banking Unit (Large
Corporations)

Joint Head of Operations Group

Masahiro Otsuka
Managing Executive Officer

Shinya Hanamura
Managing Executive Officer

Head of Strategic Planning and Management Control(Personal Banking, Retail Banking and Corporate
Banking) and Strategic Planning (Priority Assignments)

Joint Head of Personal Banking Unit

Deputy Head of Financial Institutions & Public Sector
Business Unit

Tadashi Ohi

Hiroto Koda

Managing Executive Officer

Managing Executive Officer

Daisaku Abe

Deputy Head of Human Resources Group

Deputy President & Executive Officer

Shinya Tanaka

Deputy Head of Retail Banking Unit / Deputy Head ofCorporate Banking Unit

Head of IT & Systems Group (Group CIO) / Head ofOperations Group (Group COO)

Tadashi Kanki
Senior Managing Executive Officer
Head of Internal Audit Group (Group CA)

Akira Sugano
Senior Managing Executive Officer
Head of Strategic Planning and Management Control(International Banking, Investment Banking,Transaction and Asset Management) and Strategic
Planning (Priority Assignments)

Tetsuhiko Saito
Senior Managing Executive Officer
Head of Personal Banking Unit

Junichi KatoManaging Executive Officer
Head of Markets Unit

110

Managing Executive Officer

Managing Executive Officer

Naomi Tsumura

Deputy Head of Investment Banking UnitManaging Executive Officer

Masato Monguchi

Deputy Head of Compliance GroupManaging Executive Officer

Yasuto Hamanishi

Deputy Head of Risk Management Group / Deputy
Head of Compliance GroupManaging Executive Officer

Makoto Okayama

Kouji Yonei

Managing Executive Officer

Executive Officer

Deputy Head of Corporate Banking Unit (Large
Corporations) / Deputy Head of Corporate Banking Unit
/ Deputy Head of Financial Institutions & Public Sector
Business Unit

General Manager of IT & Systems Planning Division

Nobumitsu Watanabe

Deputy Head of Corporate Banking Unit

Takahiko Yasuhara
Executive Officer
General Manager of International Coordination Division

Managing Executive Officer

Shinji Taniguchi

Deputy Head of International Banking Unit / Deputy
Head of Investment Banking Unit / Deputy Head ofTransaction Banking Unit / Deputy Head of Markets Unit

Executive Officer
General Manager of Investment Banking Coordination
Division

Executive Officer

Executive Officers(Head of Each Region Overseas)

General Manager of Personal Banking Coordination
Division

Hiroshi Suehiro

Hidenobu Mukai

Masamichi Ishikawa
Executive Officer

Senior Managing Executive Officer
Head of the Americas

Hidefumi Kobayashi *Managing Director & Managing Executive Officer
Head of Global Finance / Head of Research Group /Head of Finance & Accounting Group / In charge of
Due Diligence Department

Masaya Usuha*

Hokuto Nakano

Managing Director & Managing Executive Officer

Managing Executive Officer
Head of East Asia

SC Group Chief Audit Executive / Head of Internal
Audit Division

Executive Officer

Katsuyuki Mizuma

Naomi Tsumura*

General Manager of Financial Planning Division

Managing Executive Officer

Managing Director & Managing Executive Officer

Head of Asia & Oceania excl. East Asia

Head of Compliance Group

Executive Officer

Teiji Teramoto

Masaya Oishi*

General Manager of Executive Secretariat

Managing Executive Officer

Managing Director & Managing Executive Officer

Head of Europe, Middle East and Africa

In charge of JA Sales Department of Markets &Products Division / In charge of Corporate Investment
Services & Retail Business Division

General Manager of Asset Management Coordination
Division

Makoto Umemiya

Goji Fujishiro

Shuji Kojima
Executive Officer
General Manager of Compliance Division

Naoto Takahashi
Executive Officer
General Manager of Next-Generation IT Systems
Coordination Project Team

Mizuho Bank

Mizuho Trust & Banking
Directors
Takeo Nakano*Keizo Ohashi
Director
Chairman of Mizuho Securities UK / Chairman ofMizuho International

President & CEO (Representative Director)

Kenji Fujii *Tadashi Ohi *Director

Deputy President (Representative Director)

Head of Global Risk Management / Head of Risk
Management Group

Directors

Head of Human Resources Group / Head of Internal
Audit Group

Nobuhide Hayashi *Masato Monguchi *Director

President & CEO (Representative Director)

Managing Director
Head of Risk Management Group / Head ofCompliance Group / In charge of Credit Department

Yasuhiro Sato

Masaaki Kono*
Deputy President (Representative Director)
Deputy President (Western Japan (Kinki, Chugoku andShikoku regions))

Kosuke Nakamura*
Deputy President (Representative Director)

Kazuhisa Sawa*
Managing Director
Head of Strategic Planning, Financial Control &Accounting Group / Head of IT & Systems Group / Headof Operations Group / In charge of Executive Secretariat

Yasushi Higo

Director

Hidetaka Kawakita
Director (Outside Director)

Masaru Ono
Director (Outside Director)

Head of Business Promotion

Nobuyuki Fujii *Senior Managing Director (Representative
Director)

Tsuyoshi Hatsuzawa
Director

Yasuhiro Sato

Head of Business Promotion

Director

Shusaku Tsuhara*

Masayuki Satake

Senior Managing Director

Director (Outside Director)

Head of Compliance Group

Ryusuke Aya*Managing Director
Head of Risk Management Group

Junichi Shinbo*

Masaru Ono
Director (Outside Director)

Eiji Ogawa
Director (Outside Director)

Managing Director
Head of Financial Control & Accounting GroupKoji Fujiwara*
Managing Director

Mizuho Securities
Directors

Head of Strategic Planning Group

Hiroshi Motoyama*

Hideyuki Takahashi

President & CEO (Representative Director)

Director

Yasuhiko Imaizumi *Hirohisa Kashiwazaki

Deputy President (Representative Director) &Deputy President - Executive Officer

Director

Yasuhiro Sato
Director

Yukio MachidaDirector (Outside Director)

Seiji Koga
Director (Outside Director)

Head of Corporate BusinessYasuo Agemura*
Deputy President & Deputy President Executive Officer
Head of Global Markets / Head of Markets & Products
Division / Head of Global Business & Markets

Shuichi Shimada*Managing Director & Managing Executive Officer
Head of Strategic Planning Group / In charge ofInvestment Department

Notes:
1. indicates directors concurrently serving as executive officers, as defined in the Companies Act.
2.The Chairman and the Deputy Chairman of theBoard of Directors, and the committee member
and the Chairman of each committee of Mizuho
Financial Group are as follows:
Chairman of the Board of Directors: Hiroko Ota
Deputy Chairman of the Board of Directors:
Hideyuki Takahashi
Nominating Committee members: Mitsuo Ohashi(Chairman), Takashi Kawamura, Tatsuo Kainaka
and Hiroko Ota
Compensation Committee members: Tatsuo
Kainaka (Chairman), Tetsuo Seki and Takashi
Kawamura
Audit Committee members: Hideyuki Takahashi(Chairman), Tetsuo Seki, Tatsuo Kainaka, Hirotake
Abe and Nobukatsu Funaki
Risk Committee members: Hideyuki Takahashi(Chairman), Hidetaka Kawakita (outside expert)
and Izumi Kobayashi (outside expert)
3.The corporate auditors and executive officers,
excluding the directors concurrently serving as executive officers and executive offices responsible for
global regional operations of Mizuho Bank, have notbeen listed.
4.The corporate auditors and executive officers,
excluding the directors concurrently serving as executive officers of Mizuho Trust & Banking and Mizuho
Securities, have not been listed.

*(As of June 23, 2015)111

Location of Overseas Offices(As of June 30, 2015)

Network of Mizuho Bank

Mizuho Bank (China), Ltd.
Wuxi Branch

Asia and Oceania

8th Floor, Wuxi SI Park B, No.16 Changjiang Road,
WND, Wuxi, Jiangsu Province 214028,
The People’s Republic of China
TEL 86-510-8522-3939(Country/Region)
China

Mizuho Bank (China), Ltd.
23rd Floor, Shanghai World Financial Center,
100 Century Avenue, Pudong New Area, Shanghai
200120, The People’s Republic of China
TEL 86-21-3855-8888

Mizuho Bank (China), Ltd.
Shanghai Pilot Free Trade Zone Sub-Branch
Room 01, 08, 09, 10, 11, 12, 7F, Shanghai
International Communication and Trade Building, 55
Jilong Road, Shanghai 200131,
The People’s Republic of China
TEL 86-21-3855-8888

Mizuho Bank (China), Ltd.
Beijing Branch
8th Floor, West Wing, World Financial Center,No.1 Dong San Huan Zhong Road, Chaoyang District,
Beijing 100020, The People’s Republic of China
TEL 86-10-6525-1888

Mizuho Bank (China), Ltd.
Dalian Branch
23rd Floor, 24th Floor-A, Senmao Building, 147
Zhongshan Road, Xigang District, Dalian, Liaoning
Province 116011, The People’s Republic of China
TEL 86-411-8360-2543

Mizuho Bank (China), Ltd.
Guangzhou Branch

22nd Floor, International Business Building of Gugeng,
No.81 Hongmei Area, Dalian Economic &Technological Development Area, Dalian, Liaoning
Province 116600, The People’s Republic of China
TEL 86-411-8793-5670

Mizuho Bank (China), Ltd.
Kunshan Sub-Branch
Room D,E, 18th Floor, Dongan Building, No.258
Chunxu Road, Development Zone Kunshan City,
Kunshan, Jiangsu Province 215300,
The People’s Republic of China
TEL 86-512-6733-6888

Mizuho Bank (China), Ltd.
Changshu Sub-Branch
Room701-704, Kechuang Building, No.333 Dongnan
Road, Changshu New&Hi-tech Industrial Development
Zone, Jiangsu Province, 215500,
The People’s Republic of China
TEL 86-512-6733-6888

Mizuho Bank (China), Ltd.
Tianjin Heping Sub-Branch
Room 1902, Tianjin International Building, No.75
Nanjing Road, Heping Area, Tianjin 300050,
The People’s Republic of China
TEL 86-22-6622-5588

25th Floor, International Finance Place, No.8 Huaxia
Road, Zhujiang New Town, Tianhe District,
Guangzhou, Guangdong Province 510623,
The People’s Republic of China
TEL 86-20-3815-0888

Nanjing Representative OfficeMizuho Bank (China), Ltd.
Hefei Branch

Xiamen Representative Office

Room No.1902-1907, No.7 Office Building Wanda
Plaza, 130 Maanshan Street, Baohe District, Hefei,
Anhui Province, The People’s Republic of China
TEL 86-551-6380-0690

Room 2220, Suning Universal Hotel, 188 Guangzhou
Road, Nanjing, Jiangsu Province 210024,
The People’s Republic of China
TEL 86-25-8332-9379

Room 2102, The Bank Center, No.189 Xiahe Road,
Siming District, Xiamen, Fujian Province 361003,
The People’s Republic of China
TEL 86-592-239-5571

Hong Kong

Mizuho Bank (China), Ltd.
Qingdao Branch

Hong Kong Branch

44th Floor, Qingdao International Finance Center, 59
Hong Kong Middle Road, Shinan District, Qingdao,
Shandong Province 266071,
The People’s Republic of China
TEL 86-532-8097-0001

Kowloon Sub-Branch

Mizuho Bank (China), Ltd.
Shenzhen Branch
30th Floor, Huanggang Business Center Tower1,
Jintian Road, Futian District, Shenzhen, Guangdong
Province 518046, The People’s Republic of China
TEL 86-755-8282-9000

Mizuho Bank (China), Ltd.
Suzhou Branch
17th Floor, Genway Building, 188 Wangdun Road,
Suzhou Industrial Park, Suzhou, Jiangsu Province
215123, The People’s Republic of China
TEL 86-512-6733-6888

Mizuho Bank (China), Ltd.
Tianjin Branch
5th Floor, E2 ABC, East Wing Binhai Finance Zone,
No.20 Xinchengdong Road, TEDA, Tianjin 300457,
The People’s Republic of China
TEL 86-22-6622-5588

Mizuho Bank (China), Ltd.
Wuhan Branch
5th Floor, Tower A, New World Center Tower,
634 Jiefang Avenue, Hankou, Wuhan, Hubei Province
430032, The People’s Republic of China
TEL 86-27-8342-5000

112

Mizuho Bank (China), Ltd.
Dalian Economic & Technological
Development Area Sub-Branch

17th Floor, Two Pacific Place, 88 Queensway,
Hong Kong, S.A.R., The People’s Republic of China
TEL 852-2103-3000

16th Floor, Sun Life Tower, The Gateway,
Tsim Sha Tsui, Kowloon,
Hong Kong, S.A.R., The People’s Republic of China
TEL 852-2102-5399

New Delhi Branch
1st Floor, DLF Capitol Point, Baba Kharag SinghMarg, Connaught Place, New Delhi, 110001, India
TEL 91-11-3041-0900

Indonesia

PT. Bank Mizuho Indonesia
Sinar Mas Land Plaza Menara 2, 24th Floor, Jl. M. H.
Thamrin No.51, Jakarta 10350, Republic of Indonesia
TEL 62-21-392-5222

Cambodia

Phnom Penh Representative Office
13A Floor, Phnom Penh Tower, #445, Monivong Blvd
(St. 93/232) Sangkat Boeung Pralit, Khan 7 Makara,
Phnom Penh, Cambodia
TEL 855-23-964-490

Korea

Seoul Branch
19th Floor, Seoul Finance Center, 136, Sejong-daero,Jung-gu, Seoul, Korea
TEL 822-3782-8500

Malaysia

Labuan Branch
Level 9 (B) & (C), Main Office Tower, Financial Park
Labuan, Jalan Merdeka, 87000 Federal Territory ofLabuan, Malaysia
TEL 60-87-417766

Labuan Branch, Kuala Lumpur
Marketing Office
Level 27, Menara Maxis, Kuala Lumpur City Centre,
50088 Kuala Lumpur, Malaysia
TEL 60-3-2070-6880

Mizuho Bank (Malaysia) Berhad
Level 27, Menara Maxis, Kuala Lumpur City Centre,
50088 Kuala Lumpur, Malaysia
TEL 60-3-2058-6881

Myanmar

Yangon Representative Office
Room #03-12, Level 3, Sedona Business Suites,
No.1, Ka Ba Aye Pagoda Road, Yankin Township,
Yangon, Republic of the Union of Myanmar
TEL 95-1-544-071

Philippines

Manila Branch
25th Floor, Zuellig Building, Makati Avenue corner
Paseo de Roxas, Makati City 1225, Metro Manila,
Philippines
TEL 63-2-860-3500

Singapore

Mizuho Capital Markets (HK) Limited

Singapore Branch

16th Floor, Two Pacific Place, 88 Queensway,
Hong Kong, S.A.R., The People’s Republic of China
TEL 852-2537-3815

12 Marina View, #08-01 Asia Square Tower 2,
Singapore 018961, Republic of Singapore
TEL 65-6805-2000

India

TaiwanBangalore-Devanahali Branch

Kaohsiung Branch#462/440/339, 2nd Floor, Near Jain Temple,
N.H.7/4-207, B.B. Road, Vijayapura Cross,
Devanahalli Town, Bangalore Rural District – 562 110,
Karnataka, India
TEL 91-80-4968-2000

12th Floor, No.2, Chung Cheng 3rd Road, Kaohsiung
800, Taiwan
TEL 886-7-236-8768

Chennai Branch
Unit No.11B, 11th Floor, Prestige Palladium Bayan,Nos. 129 to 140, Greams Road, Chennai – 600 006,
Tamil Nadu, India
TEL 91-44-4928-6600

Mumbai Branch
Maker Chamber III , 1st Floor, Jamnalal Bajaj Road,
Nariman Point, Mumbai, 400 021, India
TEL 91-22-2288-6638

Taichung Branch
8th Floor, No.169, Fuhui Parkway, Taichung 407,
TaiwanTEL 886-4-2374-6300

Taipei Branch
2nd Floor, Hung Kuo Building, 167 Tun Hua
North Road, Taipei 105, Taiwan
TEL 886-2-2715-3911

Thailand

Bangkok Branch
18th Floor, TISCO Tower, 48 North Sathorn Road,
Silom, Bangrak, Bangkok 10500, Thailand
TEL 66-2-638-0200

Eastern Seaboard Branch
300/7 ESIE Plaza 2, Unit No. 2-05 Moo 1, Tambol Ta
Sit, Amphoe Pluak Daeng, Rayong 21140, Thailand
TEL 66-3-899-7000

VietnamHanoi Branch
4th Floor, 63 LTT Building, 63 Ly Thai To Street,
Hanoi, Socialist Republic of Vietnam
TEL 84-4-3936-3123/3124

Ho Chi Minh City Branch
18th Floor, Sun Wah Tower, 115 Nguyen Hue
Boulevard, District 1, Ho Chi Minh City,
Socialist Republic of Vietnam
TEL 84-8-3827-8260/8292

Australia

Sydney Branch
Level 33, 60 Margaret Street, Sydney, N.S.W. 2000,
Australia
TEL 61-2-8273-3888

Mizuho Australia Ltd.
Level 33, 60 Margaret Street, Sydney, N.S.W. 2000,
Australia
TEL 61-2-8273-3888

Spain

Mizuho Bank Nederland N.V.
Madrid Representative Office
Calle Orense 34, Planta 6, Edificio Iberia Mart II ,28020 Madrid, SpainTEL 34-91-598-2905

The Netherlands

Mizuho Bank Nederland N.V.
Apollolaan 171, 1077 AS Amsterdam, The Netherlands
TEL 31-20-5734343

United Kingdom

London Branch
Bracken House, One Friday Street, London,
EC4M 9JA, UK
TEL 44-20-7012-4000

Mizuho Capital Markets (UK) Limited
One Friday Street, London, EC4M 9JA, UK
TEL 44-20-3192-1300

Bahrain

Bahrain Representative Office
Suite 201-202, Entrance 4, 2nd Floor, Manama
Center, Manama, Bahrain (P.O. BOX 5759, Manama,
Bahrain)
TEL 973-17-224522

Iran

Tehran Representative Office
3rd Floor, No.1, 14th Street, Khaled Eslamboli
Avenue, Tehran 15117, IranTEL 98-21-8872-6593

Europe, the Middle East and Africa(Country/Region)
AustriaMizuho Bank-BA Investment ConsultingGmbH
Landhausgasse 4/7, 1010 Vienna, Austria
TEL 43-1-5355868

BelgiumMizuho Bank Nederland N.V.
Brussels Branch
Avenue Louise 480, 1050 Brussels, Belgium
TEL 32-2-645-5280

FranceParis Branch
Washington Plaza 40, rue Washington,
75408 Paris Cedex 08, France
TEL 33-1-5383-4100

Germany

Duesseldorf Branch
Benrather Strasse 18-20, 40213 Duesseldorf,
F.R. Germany
TEL 49-211-13020

Frankfurt Branch
An der Hauptwache 7, 60313 Frankfurt am Main,
F.R. Germany
TEL 49-69-29-72-95-0

Italy

Milan Branch
6th Floor, Largo Augusto 7, 20122 Milan,
Republic of Italy
TEL 39-02-778-0001

TurkeyIstanbul Representative Office
Office 813, Tekfen Tower 8th Floor, Buyukdere
Caddesi No.209, 4. Levent 34394, Istanbul, Turkey
TEL 90-212-371-8474

U.A.E

Dubai Branch
The Gate Village, Building Number 5, Level 2, Dubai
International Financial Centre, P.O.Box No:506607,
Dubai, United Arab Emirates
TEL 971-4-425-9200

RussiaAO Mizuho Bank (Moscow)
5th floor, 20, bld.1, Ovchinnikovskaya nab., 115035
Moscow, Russian Federation
TEL 7-495-212-0333

Moscow Representative Office
Millennium House Business Center, 12, Trubnaya
Street, Moscow 107045, Russian Federation
TEL 7-495-787-2771

South Africa

Johannesburg Representative Office
2nd Floor, West Tower, Maude Street, Nelson
Mandela Square, Sandton 2196, South Africa,
P.O.Box 785553, Sandton 2146
TEL 27-11-881-5410

Saudi Arabia

Mizuho Saudi Arabia Company
North Lobby 1st Floor, Al Faisaliah Tower,
King Fahd Road, Olaya District, Riyadh 11544,
Kingdom of Saudi Arabia
TEL 966-11-273-4111

The Americas(Country/Region)
BahamasMizuho Bank (USA)Nassau Branch
308 East Bay Street, P.O. Box N-7768, Nassau,
BahamasBrazilBanco Mizuho do Brasil S.A.
Avenida Engenheiro Luiz Carlos Berrini,
716- 10andar, Brooklin Novo, São Paulo, SP, CEP.
04571-000, Brazil
TEL 55-11-5504-9844

CanadaCanada Branch
100 Yonge Street, Suite 1102, Toronto, Ontario,
Canada, M5C 2W1
TEL 1-416-874-0222

Calgary Office
Suite 1000, 888 3rd Street, South West, Calgary,Alberta, Canada, T2P 5C5
TEL 1-403-444-5375

Vancouver Office
Suite 305, South Tower, 5811 Cooney Road,
Richmond, British Columbia, Canada, V6X 3M1
TEL 1-604-231-3725

Cayman Islands

Cayman Branch
190 Elgin Avenue, Grand Cayman KY1-9005,
Cayman Islands

Chile

Santiago Representative Office
Av. Apoquindo 3472, Piso 7, Las Condes, Santiago,
Chile
TEL 56-2-3203-5773

MexicoMexico Representative Office
Torres E3, Blvd. Manuel Avila Camacho No.32, Piso 7,
Oficina 702 Col. Lomas de Chapultepec, Delegacion
Miguel Hidalgo, 11000, Mexico, D.F., Mexico
TEL 52-55-5281-5037

U.S.A.

Chicago Branch
311 South Wacker Drive, Suite 2020, Chicago,
IL 60606, USA
TEL 1-312-855-1111

New York Branch
1251 Avenue of the Americas, New York,NY 10020, USA
TEL 1-212-282-3000

Los Angeles Branch
350 South Grand Avenue, Suite 1500, Los Angeles,
CA 90071, USA
TEL 1-213-243-4500

Atlanta Representative Office3353 Peachtree Road NE, Atlanta Financial Center,
Suite 500, Atlanta, GA 30326, USA
TEL 1-404-364-1550

Houston Representative Office2700 Post Oak Blvd., Suite 1270, Houston,
TX 77056, USA
TEL 1-713-499-4800

113

Location of Overseas Offices

Mizuho Bank (USA)1251 Avenue of the Americas, New York,NY 10020, USA
TEL 1-212-282-3030

Mizuho Bank (USA)Atlanta Representative Office3353 Peachtree Road NE, Atlanta Financial Center,
Suite 500, Atlanta, GA 30326, USA
TEL 1-404-364-1550

Network of Mizuho Securities

Mizuho Securities USA Inc.
Chicago Office

Beijing Representative Office

311 South Wacker Drive, Suite 700, Chicago,
IL 60606, USA
TEL 1-312-294-8800

8th Floor, Chang-Fu-Gong Office Building, Jia 26,
Jianguomenwai Street, Chaoyang District,
Beijing 100022, The People’s Republic of China
TEL 86-10-6523-4779

Shanghai Representative OfficeMizuho Bank (USA)
Chicago Representative Office

17th Floor, Shanghai World Financial Center,No.100, Century Ave., Pudong New Area,
Shanghai 200120, The People’s Republic of China
TEL 86-21-6877-8000

311 South Wacker Drive, Suite 2020, Chicago,
IL 60606, USA
TEL 1-312-855-1111

Mizuho Investment Consulting(Shanghai) Co., Ltd.

Mizuho Bank (USA)
Houston Representative Office2700 Post Oak Blvd., Suite 1270, Houston,
TX 77056, USA
TEL 1-713-499-4800

Mizuho Bank (USA)Los Angeles Representative Office

33th Floor, Shanghai World Financial Center, No.100,
Century Ave., Pudong New Area,
Shanghai 200120, The People’s Republic of China
TEL 86-21-6877-5888

Mizuho Investment Consulting(Shanghai) Co., Ltd.
Beijing Office

350 South Grand Avenue, Suite 1500, Los Angeles,
CA 90071, USA
TEL 1-213-243-4500

6010, Chang-Fu-Gong Office Building, Jia 26,
Jianguomenwai Street, Chaoyang District,
Beijing 100022, The People’s Republic of China
TEL 86-10-6526-7577

Mizuho Alternative Investments, LLC

Mizuho Securities Asia Limited

757 Third Avenue, 8th Floor, New York,NY 10017, USA
TEL 1-212-282-4804

Mizuho Capital Markets Corporation
1440 Broadway, 25th Floor, New York,NY 10018, USA
TEL 1-212-547-1500

12th Floor, Chater House, 8 Connaught Road Central,
Hong Kong, S.A.R., The People’s Republic of China
TEL 852-2685-2000

Mizuho Securities India Private Limited
Unit 141-144, 14th Floor, Free Press House,
215 Free Press Journal Marg, Nariman Point,
Mumbai-400 021, India
TEL 91-22-6121-7600

Mizuho Securities (Singapore) Pte. Ltd.

Mizuho Desk(Country/Region)
Austria

Raiffeisen Bank International AG
Am Stadtpark 9, A-1030 Vienna, Austria
TEL 43-1-71707-1375

U.A.E

Mashreqbank psc
Japan Desk, Mashreqbank Building 3F,
Dubai Internet City, Mashreqbank, P.O.Box 1250,
Dubai, United Arab Emirates
TEL 971-4-363-2324/2285“Mizuho Desk”
By forming tie-ups with major financial institutions inregions where Mizuho does not possess offices, weoffer our customers financial services through various institutions. (Transactions are conducted directly between the customer and the local financial
institution.)

One Raffles Quay, North Tower Unit 32-02,
Singapore 048583, Republic of Singapore
TEL 65-6603-5688

Mizuho Bank (Switzerland) Ltd
Loewenstrasse 32, 8021 Zurich, Switzerland
TEL 41-44-216-9111

Mizuho International plc
Bracken House, One Friday Street, London EC4M
9JA, U.K.
TEL 44-20-7236-1090

Mizuho Trust & Banking (Luxembourg)
S.A.
1B, rue Gabriel Lippmann, L-5365 Munsbach,Grand Duchy of Luxembourg
TEL 352-42-16-17-1

Mizuho Trust & Banking Co. (USA)135 W. 50th Street, 16th Floor, New York,NY 10020, USA
TEL 1-212-373-5900

Mizuho Securities USA Inc.
Hoboken Office
Waterfront Corporate Center, 111 River Street,
Suite 1100, Hoboken, NJ 07030, USA
TEL 1-201-626-1000

Mizuho Securities USA Inc.
Houston Office (Investment Banking)2700 Post Oak Boulevard, Suite 1270, Houston,
TX 77056, USA
TEL 1-713-499-4800

Mizuho Securities USA Inc.
Los Angeles Office
1875 Century Park East, Suite 700, Los Angeles,
CA 90067, USA
TEL 1-310-284-3270

Mizuho Securities USA Inc.
Los Angeles Office (Investment Banking)
350 South Grand Avenue, Los Angeles,
CA 90071, USA
TEL 1-214-243-4500

Mizuho Securities USA Inc.
New York Office (Investment Banking)1251 Avenue of the Americas, New York,NY 10020, USA
TEL 1-212-282-3000

Mizuho Securities USA Inc.
San Francisco Office
3 Embarcadero Center, Suite 1620, San Francisco,
CA 94111, USA
TEL 1-415-268-5500

Mizuho Securities USA Inc.
San Francisco Office (Investment Banking)
One Market, Spear Tower, 36th floor, San Francisco,
CA 94105, USA
TEL 1-415-293-8071

An der Welle 4, 60322 Frankfurt am Main, Germany
TEL 47-160-910-72-690

Mizuho Securities USA Inc.
London Office
Bracken House, One Friday Street, London EC4M
9JA, U.K.
TEL 44-20-7776-5800

Mizuho Securities USA Inc.

Mizuho Securities USA Inc.
Atlanta Office

Network of DIAM
DIAM Asset Management (HK) Limited
Suites 1221-22, Two Pacific Place, 88 Queensway,
Hong Kong, S.A.R, The People’s Republic of China
TEL 852-2918-9030

DIAM SINGAPORE PTE. LTD.
2 Shenton Way #12-01 SGX Centre I,
Singapore 068804
TEL 65-6532-5470

DIAM International Ltd

3455 Peachtree Road, 5th Floor, Atlanta,
GA 30326, USA
TEL 1-404-995-6830

Bracken House, One Friday Street, London, EC4M
9JA, UK
TEL 44-207-329-3777

Mizuho Securities USA Inc.
Atlanta Office (Investment Banking)

DIAM U.S.A., Inc.

3353 Peachtree Road NE, Suite 500, Atlanta,
GA 30326, USA
TEL 1-404-364-1550

Mizuho Securities USA Inc.
Boston Office
125 High Street, 21st Floor, Boston, MA 02210, USA
TEL 1-617-235-1722

114

311 South Wacker Drive, Suite 2020, Chicago,
IL 60606, USA
TEL 1-312-855-1111

Mizuho International plc
Frankfurt Office

320 Park Avenue, 12th Floor, New York,NY 10022, USA
TEL 1-212-209-9300

Network of Mizuho Trust & Banking

Mizuho Securities USA Inc.
Chicago Office (Investment Banking)1133 Avenue of the Americas, 28th Floor, New York,NY 10036, USA
TEL 1-212-350-7650

Investor Information

Date of Establishment(Eleventh Series Class XI Preferred Stock)
Percentageof shares
outstanding
Shares held(%)

January 8, 2003

Paid-in Capital¥2,255,404 million

Issued Shares
25,536,649,967 shares
Common Stock: 24,621,897,967 shares
Eleventh Series Class XI Preferred Stock: 914,752,000 shares

Number of Shareholders
Common Stock: 895,176
Eleventh Series Class XI Preferred Stock: 1,045

Major Shareholders(Common Stock)

Percentageof shares
outstanding
Shares held(%)

Japan Trustee Services Bank, Ltd.
(Trustee account)

866,823,400

3.52

The Master Trust Bank of Japan, Ltd.
(Trustee account)

783,003,000

3.18

THE BANK OF NEW YORKMELLON SA/NV 10

420,887,691

1.71

Nomura Securities Co., Ltd.

353,151,143

1.43

STATE STREET BANKWEST CLIENT - TREATY 505234

310,622,516

1.26

STATE STREET BANK AND
TRUST COMPANY 505223

304,023,553

1.23Japan Trustee Services Bank, Ltd.
(Trustee account 9)286,686,100

1.16Japan Trustee Services Bank, Ltd.
(Trustee account 5)284,612,800

1.15Japan Trustee Services Bank, Ltd.
(Trustee account 1)

283,836,500

1.15Japan Trustee Services Bank, Ltd.
(Trustee account 6)

282,791,500

1.14

Marubeni Corporation

14,500,000

6.80

SHIMIZU CORPORATION

10,000,000

4.69

ANA HOLDINGS INC.

6,000,000

2.81

Kyushu Electric Power Company,
Incorporated

5,000,000

2.34

Shiseido Company, Limited

5,000,000

2.34

Chubu Electric Power Company,
Incorporated

5,000,000

2.34

FUJI ELECTRIC CO., LTD.

5,000,000

2.34

NIPPON STEEL & SUMITOMOMETAL CORPORATION

4,200,000

1.97

Century Tokyo Leasing Corporation

4,000,000

1.87

Hitachi Urban Investment, Ltd.

4,000,000

1.87

Notes:1. Figures for the percentage of shares outstanding are rounded
down to the nearest second decimal place.
2. The percentages of shares outstanding are calculated by excluding
the treasury stock (701,631,100 shares). Furthermore, the treasury
stock is not included in the above list of major shareholders.

(As of March 31, 2015)

Notes:1. Figures for the percentage of shares outstanding are rounded
down to the nearest second decimal place.
2. The percentages of shares outstanding are calculated by excluding the treasury stock (8,695,754 shares).

115

Investor Information

Stock Listing(Common Stock)

Record Date for Distribution of Dividends from
SurplusTokyo Stock Exchange

The record dates for distribution of dividends from surplus of
the Company shall be March 31 and September 30 of eachyear.

Accounting Auditors
Ernst & Young ShinNihon LLC

Shareholder Register Manager
Mizuho Trust & Banking Co., Ltd.

Share Unit

ADR* Information

100 shares

Outline of Mizuho Financial Group’s ADR

Fiscal Year
April 1 to March 31

Convocation of General Meetings of Shareholders
An ordinary general meeting of shareholders of the Company
shall be convened no later than 3 months from the last day ofeach business year and an extraordinary general meeting ofshareholders shall be convened whenever necessary.

Record Date
1. The Company shall deem shareholders having voting rights
appearing in writing or electronically in the register of shareholders as of the end of March 31 of each year as the shareholders who are entitled to exercise their rights at the ordinary general meeting of shareholders for the relevant business year.
2. The provision of the preceding paragraph shall apply mutatis
mutandis to the record date for voting rights at the general
meetings of holders of classes of stock, where there is amatter to be resolved at an ordinary general meeting ofshareholders that requires, in addition to such resolution, aresolution by the relevant general meeting of holders of classof stock.
3. In addition to the preceding two paragraphs, the Company
may set an extraordinary record date, when necessary, by adetermination by Executive Officer(s) under the authority delegated by the Board of Directors and upon giving a priorpublic notice thereof.

Organizations that Decide Dividends from Surplus,
Etc.
The Company shall decide distribution of dividends from surplus and other matters provided for in each item of Article 459,
Paragraph 1 of the Companies Act of Japan, not by a resolution of a general meeting of shareholders, but by a resolution of
the Board of Directors, unless otherwise provided for in laws or
regulations.

116

1. Exchange :2. Ticker Symbol :3. CUSIP :4. Conversion ratio :5. Depositary bank :New York Stock Exchange
MFG
60687Y109
1 ADR = 2 common shares
The Bank of New York Mellon
101 Barclay Street
New York, NY 10286
Phone: 1-201-680-6825
U.S. Toll Free: 888-269-2377
http://www.adrbnymellon.com/
6. Local custodian bank : Mizuho Bank, Ltd.
* ADRs are securities issued for the purpose of trading in the U.S. in placeof the underlying stock of foreign companies. As ADRs are registered with
the SEC as U.S. securities, they are traded, settled and held in custodyin substantively the same manner as the stocks of U.S. companies. ADR
is an acronym for American Depositary Receipts.

Disclosure Policy

Basic Principles
We are committed to growing together with our customers ina stable and sustainable manner and bringing together ourgroup-wide expertise to contribute to the prosperity of
economies and societies throughout the world as the leading
Japanese financial services group with a global presence anda broad customer base. For this reason, we place one of thehighest management priorities on continuing to disclose information to our customers, shareholders, and investors both inand outside Japan in a fair, timely and appropriate manner, inorder that they may form proper judgments and appraisals of
the group. To achieve this aim, we observe applicable
domestic and international laws and regulations as well as
stock exchange rules relating to corporate disclosure, and weestablish and implement appropriate Disclosure Controls andProcedures.

Disclosure Controls and Procedures(1) Establishment and Implementation of Disclosure Controls
and Procedures
Our Disclosure Controls and Procedures are established toobserve applicable domestic and international laws andregulations as well as stock exchange rules and to implement fair, timely and appropriate corporate disclosure. The
Disclosure Controls and Procedures are the process carried out by directors, officers and employees of Mizuho
Financial Group and include internal controls designed toprovide reasonable assurance regarding the reliability of
Financial Reporting and the Preparation of Financial
Statements. We have established the basic principles
underlying our Disclosure Controls and Procedures as wellas our internal rules related to Disclosure Controls andProcedures that govern the management framework for theentire Mizuho Financial Group including group companies,
and we endeavor to establish, implement and continuously
improve our Disclosure Controls and Procedures. Our
Disclosure Committee is the principal management bodythat is responsible for discussing and exploring mattersrelating to Disclosure Controls and Procedures.
(2) Evaluation of Effectiveness of Disclosure Controls andProcedures
Our Disclosure Controls and Procedures are documented,
and evaluation of the overall effectiveness of our Disclosure
Controls and Procedures is conducted regularly by reviewing the contents of such documentation and their implementation. In addition, evaluation of the effectiveness andappropriateness of Disclosure Controls and Procedures isconducted through internal audits.
(3) Others
We established a “Code of Ethics for Financial
Professionals” to be observed by all directors and executive
officers, as well as all managers and other employees within
Mizuho Financial Group who engage in financial reporting,accounting or disclosure. We have also developed the“Internal Controls and Audit Hotline”, a system designed for
obtaining concerns regarding questionable accounting or

auditing matters from both inside and outside Mizuho
Financial Group.

Disclosure Methods, Other(1) Disclosure Methods
With respect to the information which is required to be disclosed pursuant to applicable domestic and internationallaws and regulations as well as stock exchange rules, wefollow the defined disclosure procedures such as publishing such information in business reports (Jigyo-Hokoku),
annual securities reports (Yukashoken-Hokokusho),Integrated Report (Annual Review) and other disclosure
publications, as well as providing such information throughthe information distribution systems of domestic and international stock exchanges and through press releases. We
also endeavor to disclose other information in a fair, timely
and appropriate manner. When we disclose such information, we basically publish on our website the information
we disclose. In addition, we endeavor to utilize the latest
disclosure methods and tools to provide more fair andwidespread disclosure.
(2) Investor Relations Activities
In accordance with our Basic Principles described above,
and with due attention to two-way communication, we
endeavor sincerely to facilitate a proper understanding of
our management strategies, financial condition and othermatters. In this way, we aim to earn the trust of the market
and obtain an appropriate market reputation.
Beginning with the disclosure required by applicable
domestic and international laws and regulations as well as
stock exchange rules, we endeavor to grasp properly thetypes of information desired by the market and to disclose
useful and appropriate information voluntarily and proactively. Regarding disclosure of information we consider particularly important, we communicate such information on
an ad hoc basis as and when necessary, even if a press
release has already been issued, through such means as
special briefing sessions.
In addition, we respect various disclosure principles
including fair disclosure. Accordingly, at individual calls, private meetings or conferences hosted or attended by representatives of Mizuho Financial Group we endeavor to limit
carefully our explanations to matters already disclosed andfacts commonly known.
(3) Correction of Misconceptions in the Markets
If we identify significant misconceptions regarding Mizuho
Financial Group in the market due to the spread of rumors
or otherwise, we endeavor to investigate their causes andcorrect such misconceptions promptly.

117

Privacy Policy Regarding Customer Information

Mizuho Financial Group, Inc. (“MHFG”) hereby establishes
and announces the “Privacy Policy Regarding Customer
Information” applicable to Mizuho Financial Group which iscomposed of MHFG, its consolidated subsidiaries and affiliates (which are accounted for by the equity method) that arelisted in MHFG’s Financial Reports.

Policy of Management
Mizuho Financial Group recognizes appropriate protection
and use of personal information to be important social
responsibilities, and makes every effort to appropriately protect and use personal information complying with the
Personal Data Protection Law in Japan, other related regulations and the internal rules of Mizuho Financial Group, including the “Privacy Policy Regarding Customer Information”
when Mizuho Financial Group conducts business.

Management of Sensitive Information
Mizuho Financial Group will not acquire, use and provide to
any third party sensitive information (e.g. political affiliation,
religion, participation in labor union, race, ethnic group, family origin, legal address on family registry and medical information) unless authorized by law or it is necessary to
conduct business on condition that Mizuho Financial Grouphas customer consent.

Security Measures
Mizuho Financial Group will maintain and manage accurate
and up to date personal information, and prevent leakage of
information with rational security measures. Mizuho Financial
Group will properly supervise employees and parties
entrusted with handling personal information.

Continuous Improvement
Proper Acquisition
Mizuho Financial Group will acquire personal information thatis necessary to conduct its business by proper and lawfulmeans.

Mizuho Financial Group will continuously review this policy
according to the development of information technologies
and the changes in social demand, and improve the management of personal information.

Purpose of Use

Procedures to Request Disclosure

Mizuho Financial Group will specify the purpose of use of
personal information and will not use it beyond the specified
purpose. Furthermore, Mizuho Financial Group will not use
personal information beyond the purpose limited by related
regulations.
The purpose of use of personal information is set forththrough the web site or other measures provided by eachcompany of Mizuho Financial Group.

Mizuho Financial Group will endeavor to properly andpromptly cope with following requests from customers:• notification of the purpose of use• disclosure of personal data
• correction, addition and deletion of personal data that do
not reflect the facts• suspension of use and elimination of personal data• suspension of providing personal data to a third party

Limitation on Providing Personal Information to a
Third Party

Customer Request

Mizuho Financial Group will not provide personal information
to any third party in principle unless the individual concerned
has agreed to such use or it is authorized by law. However,Mizuho Financial Group may provide personal information to
relevant entities without customer consent in following
cases:• Mizuho Financial Group entrusts management of personal information that is necessary to achieve the purpose of use to a third party.
• Mizuho Financial Group is one of the parties in a consolidation transaction.
• Mizuho Financial Group uses personal information jointlywith designated entities that are publicly informed.

118

Mizuho Financial Group will endeavor to cope with customer
requests for the management of personal information sincerely and promptly.

Financial Analysis[Under Japanese GAAP]Key Indicators of Mizuho Financial Group, Inc.

120

Status of Asset Quality

122

119

Financial Analysis

Key Indicators of Mizuho Financial Group, Inc.

Key Indicators of Mizuho Financial Group, Inc. (Consolidated)
Billions of yen

As of or for the Fiscal Years ended March 31,

Total Income
Net Income
Comprehensive Income
Net Assets
Total Assets
Deposits
Debentures
Loans and Bills Discounted
Securities
Net Assets per Share (Yen) (Note 1)
Net Income per Share (Yen) (Note 1)
Diluted Net Income per Share (Yen) (Note 1)

2015

¥

3,180.8
611.9
1,941.09,800.5
189,684.7
113,452.4—
73,415.1
43,278.7

2014¥

2,940.7
688.4
832.9
8,304.5
175,822.8
101,811.2—
69,301.4
43,997.5

2013¥

2,914.0
560.5
1,270.8
7,736.2
177,411.0
99,568.7—
67,536.8
53,472.3

2012¥

2,808.5
484.5
627.5
6,869.2
165,360.5
90,636.6—
63,800.5
51,392.8

2011¥

2,777.0
413.2
266.6
6,623.9
160,812.0
88,884.1
740.9
62,777.7
44,782.0

322.8624.91
24.10

253.2528.18
27.12

229.7022.96
22.05

187.1920.62
19.75

177.53
20.47
19.27

Capital Adequacy Ratio (BIS Standard) (Note 2)
Total Capital Ratio(International Standard (Basel III)) (Note 2)

/

/

/

15.50%

15.30%

14.58%

14.36%

14.19%//

Tier 1 Capital Ratio(International Standard (Basel III)) (Note 2)

11.50%

11.35%

11.03%//

Common Equity Tier 1 Capital Ratio(International Standard (Basel III)) (Note 2)

9.43%

8.80%

8.16%

/

/

Net Return on Equity
PER (Times)

8.6%
8.47x

11.6%
7.23x

10.9%
8.66x

11.3%
6.54x

11.7%
6.74x

6,654.9
2,619.2(903.4)(2,286.0)
10,607.4(305.7)

5,858.6(749.6)(283.8)4,163.0(6,175.6)(680.6)

6,051.5(1,667.4)
155.0

Cash and Cash Equivalents at the end of the fiscal year 27,840.7

19,432.4

11,347.5

6,483.1

9,182.4

Cash Flow from Operating Activities
Cash Flow from Investing Activities
Cash Flow from Financing Activities

Notes: 1. “Net Assets per Share,” “Net Income per Share” and “Diluted Net Income per Share” are calculated in accordance with “Accounting Standard for Earnings per Share” (ASBJ Statement No.2)
and “Guidance for Accounting Standards for Net Earning per Share” (ASBJ Guidance No.4, September 25, 2002).
2. Capital Adequacy Ratio, Total Capital Ratio, Tier 1 Capital Ratio and Common Equity Tier 1 Capital Ratio are based on the “Standards for Determining the Status of Capital Adequacy inconsideration of assets held by a bank holding company and by its subsidiaries, in accordance with Banking Law Article 52-25” (Financial Services Agency Ordinance Announcement No.20,
March 27, 2006). Mizuho Financial Group, Inc. has applied the new framework(Basel III) starting the fiscal year ended March 31, 2013.

120

Key Indicators of Mizuho Financial Group, Inc. (Non-Consolidated)
Billions of yen

As of or for the Fiscal Years ended March 31,

2015

Operating Income¥
377.7
Net Income
349.0
Common Stock and Preferred Stock2,255.4
Number of Shares Issued and Outstanding
Common Stock
24,621,897,967 shares
Eleventh Series Class XI Preferred Stock914,752,000 shares— sharesThirteenth Series Class XIII Preferred Stock
Net Assets
5,096.2
Total Assets
6,603.1
198.15Net Assets per Share (Yen) (Note 1)
Dividends per Share (Yen) (Interim Dividends per Share) (Yen)Common Stock
7.5
Eleventh Series Class XI Preferred Stock20
Thirteenth Series Class XIII Preferred Stock (Note 2)—
Common Stock
3.5
Eleventh Series Class XI Preferred Stock10
Thirteenth Series Class XIII Preferred Stock (Note 2)—
14.11
Net Income per Share (Yen) (Note 1)
Diluted Net Income per Share (Yen) (Note 1)
13.74
PER (Times)
14.95xDividend Propensity
53.12%

2014

¥

316.8
285.8
2,254.9

2013

¥

262.1
241.3
2,254.9

2012

¥

37.7
10.2
2,254.9

2011

¥

46.4
18.5
2,181.3

24,263,885,187 shares
914,752,000 shares— shares4,900.4
6,251.3
188.9024,164,864,477 shares
914,752,000 shares
36,690,000 shares
4,788.9
6,202.1
182.4324,048,165,727 shares
914,752,000 shares
36,690,000 shares
4,688.3
6,128.4
177.82

21,782,185,320 shares
914,752,000 shares
36,690,000 shares
4,652.8
6,035.1
192.32

6.5
20
—
3
10
—
11.53
11.25
17.68x56.33%

6
20
30
3
10
15
9.69
9.46
20.53x61.91%

6
20
30
3
10
15
0.06
0.06
2,017.69x
8,967.54%

6
20
30
—
—
—
0.46
0.45
299.99x1,304.32%

Notes: 1. “Net Assets per Share,” “Net Income per Share” and “Diluted Net Income per Share” are calculated in accordance with “Accounting Standard for Earnings per Share” (ASBJ Statement No.2)
and “Guidance for Accounting Standards for Net Earning per Share” (ASBJ Guidance No.4, September 25, 2002).
2. As Mizuho Financial Group Inc. acquired and cancelled all of the Thirteenth Series Class XIII Preferred Stock as of July 11, 2013, the cash dividends per share of the Thirteenth Series Class XIII
Preferred Stock for and after fiscal 2013 have not been recorded.

121Financial Analysis

Status of Asset Quality

 Credit-Related Costs
Credit-Related Costs (Consolidated)
Billions of yen

For the Fiscal Years ended March 31,

2015

Credit-related Costs
Expenses related to Portfolio Problems (including Provisionfor (Reversal of) General Reserve for Possible Losses on Loans)
Losses on Write-offs of Loans
Reversal of Reserves for Possible Losses on Loans, etc.
Credit Costs for Trust Accounts

¥

4.6

2014

¥

Change(112.8)

¥

117.5

87.0

23.3

63.6

84.5
(82.3)—

22.4(136.2)
—

62.0
53.8
—

 Overview of Non-performing Loans (NPLs) as of March 31, 2015 (the Two Banks) (Banking Accounts)
Billions of yen

1. Self-Assessment
Categorization

NonCategory II
Categorization

Bankrupt and Substantially
Bankrupt Obligors
56.6

ObligorCategory III

Category IV

Collateral, Guarantees, etc.:
53.9
Reserves for Possible Losses:
2.7

Reserve
Ratio
100%

DirectWrite-offs

339.4

60.1

Collateral, Guarantees, etc.:
200.9
Reserves for Possible Losses:
138.4

Reserve
Ratio
69.6%

56.6

Watch Obligors

Intensive Control
Obligors
399.5

Claims for Special
Attention
542.9

Reserve Ratio against
Uncovered Portion
37.3%
Collateral, Guarantees, etc.:
192.8
Reserves for Possible Losses:
130.7

2. Disclosed Claims under
the Financial Reconstruction Act (FRA)

3. Non-Accrual, Past
Due & Restructured
Loans

Claims against Bankrupt
and Substantially Bankrupt
Obligors
56.6

Loans to Bankrupt Obligors
5.9

Coverage Ratio 100%

Amounts forreserves arerecorded under
Non-Categorization

Claims against Special
Attention Obligors·Coverage Ratio: 62.6%·Reserve Ratiofor Uncovered Portion: 39.7%·Reserve Ratio
against Entire Claims: 24.6%

Claims with Collection Risk
399.5

Non-Accrual
Delinquent Loans
396.4

Coverage Ratio 84.9%
53.8 (Note 2)

Claims for Special
Attention (Note 1)
542.9
Coverage Ratio 59.5%

Loans Past Due forThree Months or More
3.4
Restructured Loans
539.4

Special Attention Obligors
Other Watch Obligors
Normal Obligors

Total
83,027.1

Reserve Ratio
against Total Claims·Other Watch Obligors: 3.72%·Normal Obligors: 0.07%

Total Coverage
Ratio 72.1%

Total
999.1

Total
945.3

Notes: 1. Claims for Special Attention is denoted on an individual loans basis. Claims against Special Attention Obligors includes all claims, not limited to claims for Special Attention.
2. The difference between total Non-Accrual, Past Due & Restructured Loans and total Disclosed Claims under the FRA represents the amount of claims other than loans included in Disclosed Claims
under the FRA.

122

 Status of Disclosed Claims under the FRA
Disclosed Claims under the FRA (Consolidated)(Consolidated)
Billions of yen

As of March 31,

Claims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk
Claims for Special Attention
Total

2015

¥

77.3
404.2
618.4

2014

¥

Change

80.2
484.9
508.7

¥

(2.9)
(80.7)
109.7¥ 1,100.0¥ 1,073.9

¥

26.0

2015

2014

Note: Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.
Billions of yen

Amount of Partial Direct Write-offs

¥

226.6

¥

194.5

Change¥32.1(Trust Accounts)
Billions of yen

As of March 31,

Claims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk
Claims for Special Attention
Total

2015

2014

Change

¥

—
2.9
—

¥

—
3.0
—

¥

—
(0.0)
—

¥

2.9

¥

3.0

¥

(0.0)

(Consolidated and Trust Accounts)
Billions of yen

As of March 31,

Claims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk
Claims for Special Attention
Total

2015

¥

77.3
407.2
618.4

¥ 1,103.0

2014¥

Change

80.2
488.0
508.7

¥

(2.9)
(80.7)
109.7¥ 1,076.9

¥

26.0

123

Financial Analysis

Status of Asset Quality

 Status of Non-Accrual, Past Due & Restructured Loans (Consolidated)(Consolidated)
Non-Accrual, Past Due & Restructured Loans
Billions of yen

As of March 31,

Loans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans
Total

2015

¥

10.2
425.7
3.4
614.9

2014

¥

Change

12.1
508.0
4.1
504.6

¥

(1.9)
(82.2)(0.6)
110.3¥ 1,054.4¥ 1,028.9

¥

25.5

2015

2014

Note: Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.
Billions of yen

Amount of Partial Direct Write-offs

¥

205.0

¥

166.7

Change¥38.2

Ratio to Total Loans%

As of March 31,

2015

2014

ChangeLoans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

0.01%
0.57
0.00
0.83

0.01%
0.73
0.00
0.72

(0.00)%(0.15)(0.00)
0.10

1.43%

1.48%

(0.04)%

2015

2014

Non-Accrual, Past Due & Restructured Loans / Total Loans
Note: Above figures are presented net of partial direct write-offs.

Reserves for Possible Losses on Loans
Billions of yen

As of March 31,

Reserves for Possible Losses on Loans
General Reserve for Possible Losses on Loans
Specific Reserve for Possible Losses on Loans
Reserve for Possible Losses on Loans to Restructuring Countries

¥

525.4
344.4
180.3
0.6

¥

616.3
398.7
216.7
0.7

Change¥(90.8)(54.2)(36.4)(0.1)

Note: Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.
Billions of yen

2015

Amount of Partial Direct Write-offs

¥

227.2

2014

¥

195.1

Change¥32.0

Reserve Ratios for Non-Accrual, Past Due & Restructured Loans%

As of March 31,

2015

2014

ChangeAfter Partial Direct Write-offs

49.83%

59.89%(10.06)%

Note: Reserve Ratio = Reserves for Possible Losses on Loans / Total Non-Accrual, Past Due & Restructured Loans.

124

(Trust Accounts)
Non-Accrual, Past Due & Restructured Loans
Billions of yen

As of March 31,

Loans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans
Total

2015

2014

Change

¥

—
2.9
—
—

¥

—
3.0
—
—

¥

—
(0.0)
—
—

¥

2.9

¥

3.0

¥

(0.0)

Ratio to Total Loans%

As of March 31,

2015

2014

ChangeLoans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

.—%
18.68
.—.
.—

.—%
17.38
.—.
.—

.—%
1.29
.—
.—

18.68%

17.38%

1.29%

2015

2014

Non-Accrual, Past Due & Restructured Loans / Total Loans(Consolidated and Trust Accounts)
Non-Accrual, Past Due & Restructured Loans
Billions of yen

As of March 31,

Loans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

10.2
428.7
3.4
614.9

¥

Change

12.1
511.0
4.1
504.6

¥

(1.9)
(82.2)(0.6)
110.3¥ 1,057.4¥ 1,031.9¥

25.4

As of March 31,

2015

2014

ChangeLoans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

0.01%
0.58
0.00
0.83

0.01%
0.73
0.00
0.72

(0.00)%(0.15)(0.00)
0.10

1.44%

1.48%

(0.04)%

Total¥

Note: Above figures are presented net of partial direct write-offs.

Ratio to Total Loans%

Non-Accrual, Past Due & Restructured Loans / Total Loans
Note: Above figures are presented net of partial direct write-offs.

125

Financial Analysis

Status of Asset Quality

 Status of Loans by Industry
Outstanding Balances by Industry (Consolidated)
Billions of yen, %2015
Outstanding
Balance Composition

As of March 31,

2014
Outstanding
Balance Composition

ChangeOutstanding
Balance Composition¥

Domestic Total (excluding Loans Booked Offshore) ¥ 52,540.1
Manufacturing
7,953.8
Agriculture & Forestry
42.3
Fishery
0.9
Mining, Quarrying Industry & Gravel Extraction Industry
264.0
Construction
758.4
Utilities
2,424.5
Communication
1,231.3
Transportation & Postal Industry
2,283.1
Wholesale & Retail
5,047.1
Finance & Insurance
3,915.8
Real Estate
6,453.1
Commodity Lease
1,784.4
Service Industries
2,488.9
Local Governments
1,005.5
Governments
3,605.2
Other
13,281.1

100.00%
15.14
0.08
0.00
0.50
1.44
4.62
2.34
4.35
9.61
7.45
12.28
3.40
4.74
1.91
6.86
25.28

¥ 53,447.2
7,620.7
36.8
2.0
239.9
757.1
2,397.0
1,218.0
2,467.4
4,791.3
3,604.9
6,312.5
1,536.7
2,419.6
1,112.7
5,619.6
13,310.3

100.00%
14.26
0.07
0.00
0.45
1.42
4.48
2.28
4.62
8.96
6.75
11.81
2.88
4.53
2.08
10.51
24.90

Overseas Total (including Loans Booked Offshore)
Governments
Financial Institutions
Other

20,874.9681.9
5,252.8
14,940.1

100.00
3.27
25.16
71.57

15,854.1
522.0
4,095.8
11,236.2¥ 73,415.1/¥ 69,301.4

Total(907.0)
333.1
5.4
(1.0)
24.0
1.3
27.5
13.2
(184.2)
255.8
310.9
140.6
247.7
69.2
(107.2)(2,014.3)(29.2)/
0.88)%
0.01(0.00)
0.05
0.02
0.14
0.06
(0.27)
0.65
0.70
0.47
0.52
0.21
(0.17)(3.65)
0.38

100.00
3.29
25.84
70.87

5,020.8
159.9
1,157.0
3,703.9/(0.02)(0.68)
0.70/¥ 4,113.7/

Note: Domestic Total = MHFG and its domestic consolidated subsidiaries (excluding their overseas offices).
Overseas Total = Overseas offices of MHFG's domestic consolidated subsidiaries and MHFG's overseas consolidated subsidiaries.

 Status of Loans by Nationality of Borrowers
Balance of Loans to Restructuring Countries (Consolidated)
As of March 31, 2015

Billions of yen, %As of March 31, 2014

Billions of yen, %Egypt
Argentina

¥

5.2
0.0

Egypt
Venezuela
Argentina
Ecuador

¥

5.0
0.3
0.0
0.0

Total
Ratio to Total Assets

¥

5.2
0.00%

Total
Ratio to Total Assets

¥

5.3
0.00%

Note: Listed are loans to the government and related agents in restructuring countries for which Reserves for Possible Losses on Loans to Restructuring Countries are accounted as stipulated under theJapanese Institute of Certified Public Accountants (JICPA) Banking Audit Committee Report No.4.

126

Financial Data of Mizuho Financial Group, Inc.
[Under Japanese GAAP]

Independent Auditors' Report

128

Consolidated Financial Statements

129

Notes to Consolidated Financial Statements

141

127

Financial Data of Mizuho Financial Group, Inc.

Independent Auditors’ Report

The Board of Directors
Mizuho Financial Group, Inc.
We have audited the accompanying consolidated financial statements of Mizuho Financial Group, Inc., which comprise the consolidated balance sheet as of March 31, 2015, and the consolidated statements of income, comprehensive income, changes in
net assets, and cash flows for the year then ended and a summary of significant accounting policies and other explanatory information, all expressed in Japanese yen.
Management's Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordancewith accounting principles generally accepted in Japan, and for designing and operating such internal control as management
determines is necessary to enable the preparation and fair presentation of the consolidated financial statements that are free frommaterial misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit
in accordance with auditing standards generally accepted in Japan. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial
statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. The purpose of an audit of the consolidated
financial statements is not to express an opinion on the effectiveness of the entity's internal control, but in making these risk
assessments the auditor considers internal controls relevant to the entity's preparation and fair presentation of the consolidated
financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as
well as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
OpinionIn our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated
financial position of Mizuho Financial Group, Inc. as of March 31, 2015, and their consolidated financial performance and cash
flows for the year then ended in conformity with accounting principles generally accepted in Japan.
Convenience Translation
We have reviewed the translation of these consolidated financial statements into U.S. dollars, presented for the convenience ofreaders, and, in our opinion, the accompanying consolidated financial statements have been properly translated on the basis
described in Note 1.

June 22, 2015
Tokyo, Japan
128

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Balance Sheet
Millions of yen
2015

As of March 31,

AssetsCash and Due from Banks (Notes 17, 39, 41 and 42)
Call Loans and Bills Purchased (Note 41)
Receivables under Resale Agreements (Note 41)
Guarantee Deposits Paid under Securities Borrowing Transactions(Note 41)
Other Debt Purchased (Notes 41 and 42)
Trading Assets (Notes 10, 17, 41 and 42)
Money Held in Trust (Notes 41 and 42)
Securities (Notes 11, 17, 26, 41 and 42)
Loans and Bills Discounted (Notes 12, 17 and 41)
Foreign Exchange Assets (Note 13)
Derivatives other than for Trading Assets (Notes 41 and 43)
Other Assets (Notes 14, 17 and 42)
Tangible Fixed Assets (Notes 15, 28 and 40)
Intangible Fixed Assets (Note 40)
Net Defined Benefit Asset (Note 25)
Deferred Tax Assets (Note 27)
Customers' Liabilities for Acceptances and Guarantees (Note 26)
Reserves for Possible Losses on Loans (Notes 16 and 41)
Reserve for Possible Losses on Investments
Total Assets¥

29,096,166
444,115
8,582,239¥

2014

20,610,276
467,758
8,349,528

Thousands of
U.S. dollars (Note 1)
2015$

241,923,727
3,692,653
71,358,105

4,059,340
3,239,831
10,781,735
157,728
43,278,733
73,415,170
1,623,736
3,544,243
4,066,424
1,078,051
657,556
743,382
36,9385,404,843(525,486)(2)5,010,740
3,263,057
11,469,811
168,369
43,997,517
69,301,405
1,576,167
2,820,468
2,840,720
925,266
531,501
413,073
104,909
4,588,646(616,307)(27)

33,751,897
26,937,985
89,646,095
1,311,451
359,846,456
610,419,643
13,500,761
29,469,060
33,810,793
8,963,593
5,467,335
6,180,950
307,13144,939,251(4,369,226)(21)¥ 189,684,749¥ 175,822,885$ 1,577,157,639

129

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Balance Sheetー(Continued)
Millions of yen
2015

As of March 31,

Thousands of
U.S. dollars (Note 1)
2014

Liabilities and Net Assets
Liabilities
Deposits (Notes 17, 18 and 41)¥ 113,452,451 ¥ 101,811,282
Call Money and Bills Sold (Notes 17, 19 and 41)
5,091,198
7,194,432
Payables under Repurchase Agreements (Notes 17 and 41)
19,612,120
16,797,803
Guarantee Deposits Received under Securities Lending
Transactions (Notes 17 and 41)
2,245,639
6,085,331
Commercial Paper (Note 20)538,511
677,459
Trading Liabilities (Notes 10 and 41)
8,743,196
8,183,037
Borrowed Money (Notes 17, 21 and 41)
7,195,869
7,838,357
Foreign Exchange Liabilities (Note 13)
473,060
323,327
Short-term Bonds (Note 22)
816,705
584,568
Bonds and Notes (Notes 23 and 41)
6,013,731
5,245,743
Due to Trust Accounts
1,780,768
1,300,655
Derivatives other than for Trading Liabilities (Notes 41 and 43)
3,474,332
3,004,497
Other Liabilities (Note 24)
4,261,955
3,570,902
Reserve for Bonus Payments
59,86952,641Net Defined Benefit Liability (Note 25)
47,51846,006
Reserve for Director and Corporate Auditor Retirement Benefits
1,527
1,547
Reserve for Possible Losses on Sales of Loans
13
1,259
Reserve for Contingencies
7,845
6,309
Reserve for Reimbursement of Deposits
15,851
16,451
Reserve for Reimbursement of Debentures
48,87854,956
Reserves under Special Laws
1,607
1,273
Deferred Tax Liabilities (Note 27)
524,32150,783
Deferred Tax Liabilities for Revaluation Reserve for Land (Note 28)
72,392
81,060Acceptances and Guarantees (Note 26)
5,404,843
4,588,646

2015$

943,314,641
42,331,405
163,067,432
18,671,651
4,477,520
72,696,401
59,830,961
3,933,319
6,790,600
50,001,929
14,806,419
28,887,773
35,436,566
497,792
395,10212,702
110
65,234
131,797
406,407
13,3694,359,539
601,916
44,939,251

Total Liabilities
Net Assets
Common Stock and Preferred Stock (Note 29)
Capital Surplus
Retained Earnings
Treasury Stock (Note 29)¥ 179,884,211¥ 167,518,336$ 1,495,669,836

¥

¥

$

Total Shareholders' Equity
Net Unrealized Gains (Losses) on Other Securities (Note 42)
Deferred Gains or Losses on Hedges
Revaluation Reserve for Land (Note 28)
Foreign Currency Translation Adjustments
Remeasurements of Defined Benefit Plans (Note 25)
Total Accumulated Other Comprehensive Income
Stock Acquisition Rights (Note 30)
Minority Interests
Total Net Assets
Total Liabilities and Net Assets

6,131,166
1,737,348
26,635
146,419(40,454)
160,005
2,029,955
3,820
1,635,595
9,800,538¥ 189,684,749

2,255,404
1,110,006
2,769,371(3,616)

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

130

2,254,972
1,109,508
2,315,608(3,874)

5,676,215
733,522(6,677)140,745(63,513)(22,979)
781,096
3,179
1,844,057
8,304,549¥ 175,822,885

18,752,846
9,229,290
23,026,283(30,066)

50,978,353
14,445,404
221,465
1,217,424(336,363)
1,330,389
16,878,319
31,764
13,599,367
81,487,803$ 1,577,157,639

Consolidated Statement of Income

2014

Thousands of
U.S. dollars (Note 1)2015¥ 1,468,976
52,641
729,341
262,963
365,264
301,652¥ 1,417,569
52,014682,400
189,020
255,422344,275$ 12,213,991
437,694
6,064,200
2,186,441
3,037,041
2,508,131

3,180,840

2,940,702

26,447,498

339,543
135,981—
155,924
1,351,611
207,147

309,266
121,631
1,598
128,647
1,258,227
135,9622,823,177
1,130,633—
1,296,453
11,238,145
1,722,351

2,190,208
990,632

1,955,335
985,366

18,210,759
8,236,739

260,268
44,723304,992
685,640
73,705137,010
77,960214,970
770,396
81,9802,164,036
371,860
2,535,896
5,700,843
612,831

Millions of yen
2015

For the Fiscal Years ended March 31,

IncomeInterest Income (Note 31)
Fiduciary Income
Fee and Commission Income
Trading Income (Note 32)
Other Operating Income (Note 33)
Other Income (Note 35)
Total Income
Expenses
Interest Expenses (Note 31)
Fee and Commission Expenses
Trading Expenses (Note 32)
Other Operating Expenses (Note 34)
General and Administrative Expenses (Note 30)
Other Expenses (Note 36)
Total Expenses
Income before Income Taxes and Minority Interests
Income Taxes:
Current
Deferred
Total Income Taxes
Income before Minority Interests
Minority Interests in Net Income
Net Income¥

611,935¥

688,415$

5,088,012

131

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Per Share of Common Stock
Yen
2015

As of March 31,

Net Income:
Basic
DilutedCash Dividends

¥

24.91
24.10
7.50

2014

¥

28.18
27.12
6.50

U.S. dollars (Note 1)
2015

$

0.21
0.20
0.06

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

Consolidated Statement of Comprehensive Income
Millions of yen
2015

For the Fiscal Years ended March 31,

Income before Minority Interests
Other Comprehensive Income(Note 37):
Net Unrealized Gains (Losses) on Other Securities
Deferred Gains or Losses on Hedges
Revaluation Reserve for Land
Foreign Currency Translation Adjustments
Remeasurements of Defined Benefit Plans
Share of Other Comprehensive Income of Associates
Accounted for Using Equity Method
Comprehensive Income
Comprehensive Income Attributable to Owners of the Parent:
Comprehensive Income Attributable to Minority Interests:¥¥¥

685,640
1,255,433
1,004,848
33,252
7,531
15,144
183,108
11,548
1,941,073
1,862,651
78,422

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

132

¥

¥
¥

2014

770,396
62,531135,024(91,618)
3
15,979—3,142
832,927
741,562
91,365

Thousands of
U.S. dollars (Note 1)
2015

$

$
$

5,700,843
10,438,458
8,354,935
276,481
62,621
125,921
1,522,480
96,02016,139,301
15,487,248
652,053

Consolidated Statement of Changes in Net Assets
Millions of yen
Shareholders' Equity

For the Fiscal Year ended
March 31, 2015

Balance as of the beginningof the period
Cumulative Effects of
Changes in Accounting
Policies
Balance as of the beginningof the period reflecting
Changes in Accounting
Policies

CommonStock andPreferred
Stock

CapitalSurplusRetained
Earnings

Treasury
Stock

Total
Shareholders'Equity¥ 2,254,972 ¥ 1,109,508¥ 2,315,608¥ (3,874)¥ 5,676,215

16,107¥ 2,254,972 ¥ 1,109,508¥ 2,331,715

16,107¥ (3,874)¥ 5,692,322

Changes during the period
Issuance of New Shares

431

431

Cash Dividends
Net Income
Repurchase of Treasury
Stock
Disposition of Treasury
Stock
Transfer from Revaluation
Reserve for Land

863
(176,136)(176,136)

611,935

611,935

66

(273)

(273)

531

598

1,856

1,856

Net Changes in Items otherthan Shareholders' Equity
Total Changes during theperiodBalance as of the end of theperiod431

498

437,655258

438,843¥ 2,255,404 ¥ 1,110,006¥ 2,769,371¥ (3,616)¥ 6,131,166

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

133

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Statement of Changes in Net Assetsー(Continued)
Millions of yen
Accumulated Other Comprehensive Income

For the Fiscal Year ended
March 31, 2015

Balance as of the beginningof the period
Cumulative Effects of
Changes in Accounting
Policies
Balance as of the beginningof the period reflecting
Changes in Accounting
PoliciesNet
Unrealized
Gains(Losses) on
Other
Securities

Deferred
Gains or
Losses on
Hedges¥ 733,522 ¥Revaluation
Reserve forLand(6,677) ¥140,745

Foreign
Currency
Translation
Adjustments

Remeasure-ments ofDefinedBenefitPlans¥ (63,513) ¥ (22,979)

Total
Accumulated
Other
Comprehensive
Income¥Stock
Acquisition
Rights781,096 ¥Minority
Interests

3,179 ¥ 1,844,057 ¥ 8,304,549
573¥ 733,522 ¥(6,677) ¥140,745¥ (63,513) ¥ (22,979)¥

781,096 ¥Total
Net Assets

16,681

3,179 ¥ 1,844,631 ¥ 8,321,230

Changes during the period863

Issuance of New Shares(176,136)

Cash Dividends

611,935Net Income
Repurchase of Treasury
Stock
Disposition of Treasury
Stock
Transfer from Revaluation
Reserve for Land
Net Changes in Items otherthan Shareholders' Equity
Total Changes during theperiodBalance as of the end of theperiod

(273)
598
1,856
1,003,826

33,313

5,674

23,059

182,985

1,248,859

640(209,035)

1,040,464

1,003,826

33,313

5,674

23,059

182,985

1,248,859

640(209,035)

1,479,307¥1,737,348 ¥

26,635 ¥146,419¥ (40,454) ¥ 160,005

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

134¥ 2,029,955 ¥

3,820 ¥ 1,635,595 ¥ 9,800,538

Consolidated Statement of Changes in Net Assetsー(Continued)
Millions of yen
Shareholders' Equity

For the Fiscal Year ended
March 31, 2014

Balance as of the beginningof the period

CommonStock andPreferred
Stock

Retained
Earnings

Total
Treasury
Shareholders'
Stock
Equity¥ 2,254,972 ¥ 1,109,508 ¥ 1,814,782¥ (4,661) ¥ 5,174,601(152,265)(152,265)

688,415

688,415

CapitalSurplus

Changes during the period
Cash Dividends
Net Income
Repurchase of Treasury
Stock
Disposition of Treasury
Stock
Cancellation of Treasury
Stock
Transfer from Revaluation
Reserve for Land
Change of scope of
consolidation
Increase in Retained
Earnings due to change ofaccounting period ofsubsidiaries(37,387)(37,387)

(31)

1,177

1,145

(36,997)

36,997

－

1,604

1,604

(3)

(3)

104

104

Net Changes in Items otherthan Shareholders' Equity
Total Changes during theperiodBalance as of the end of theperiod－－500,826¥ 2,254,972 ¥ 1,109,508 ¥ 2,315,608

787

501,614¥ (3,874) ¥ 5,676,215

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

135

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Statement of Changes in Net Assetsー(Continued)
Millions of yen
Accumulated Other Comprehensive Income

For the Fiscal Year ended
March 31, 2014

Balance as of the beginningof the period

Net
Unrealized
Gains(Losses) on
Other
Securities¥ 615,883 ¥Deferred
Gains or
Losses on
Hedges

Revaluation
Reserve forLand

84,634 ¥142,345

Foreign
Currency
Translation
Adjustments

Remeasure-ments ofDefinedBenefitPlans¥ (90,329) ¥

－

Total
Accumulated
Other
Comprehensive
IncomeStock
Acquisition
Rights¥ 752,533 ¥Minority
Interests

Total
Net Assets

2,687 ¥ 1,806,407 ¥ 7,736,230

Changes during the period(152,265)

Cash Dividends

688,415Net Income
Repurchase of Treasury
Stock
Disposition of Treasury
Stock
Cancellation of Treasury
Stock
Transfer from Revaluation
Reserve for Land(37,387)
1,145
－
1,604

Change of scope of
consolidation
Increase in Retained
Earnings due to change ofaccounting period ofsubsidiaries
Net Changes in Items otherthan Shareholders' Equity
Total Changes during theperiodBalance as of the end of theperiod(3)
104

117,638(91,311)(1,600)26,816(22,979)

28,562492

37,64966,705

117,638(91,311)(1,600)26,816(22,979)

28,562492

37,649568,319¥ 733,522 ¥(6,677) ¥ 140,745 ¥(63,513) ¥ (22,979)

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

136¥ 781,096 ¥3,179 ¥ 1,844,057 ¥ 8,304,549

Consolidated Statement of Changes in Net Assetsー(Continued)
Thousands of U.S. dollars (Note 1)
Shareholders' Equity

For the Fiscal Year ended
March 31, 2015

Balance as of the beginningof the period
Cumulative Effects of
Changes in Accounting
Policies
Balance as of the beginningof the period reflecting
Changes in Accounting
Policies

Common Stockand Preferred
Stock

CapitalSurplusRetained
Earnings$ 18,749,255 $ 9,225,147 $19,253,417 $Treasury
Stock

Total
Shareholders'Equity(32,211)$ 47,195,608

133,925$ 18,749,255 $ 9,225,147 $19,387,342 $

133,925(32,211)$ 47,329,533

Changes during the period
Issuance of New Shares

3,591

3,591

7,182

Cash Dividends(1,464,511)(1,464,511)

Net Income

5,088,012

5,088,012

Repurchase of Treasury
Stock
Disposition of Treasury
Stock
Transfer from Revaluation
Reserve for Land

552

(2,276)(2,276)

4,421

4,973

15,44015,440Net Changes in Items otherthan Shareholders' Equity
Total Changes during theperiodBalance as of the end of theperiod

3,591

4,143

3,638,941$ 18,752,846 $ 9,229,290 $23,026,283 $

2,145

3,648,820(30,066) $ 50,978,353

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

137

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Statement of Changes in Net Assetsー(Continued)
Thousands of U.S. dollars (Note 1)
Accumulated Other Comprehensive Income

For the Fiscal Year ended
March 31, 2015

Balance as of the beginningof the period
Cumulative Effects of
Changes in Accounting
Policies
Balance as of the beginningof the period reflecting
Changes in Accounting
PoliciesNet
Unrealized
Gains(Losses) on
Other
Securities

RemeasureTotal
ments ofAccumulated
Defined
Other
Benefit Comprehensive
Plans
IncomeDeferred
Gains or
Losses on
Hedges

Revaluation
Reserve forLand

Foreign
Currency
Translation
Adjustments$6,098,961 $ (55,521)$1,170,242$ (528,092) $ (191,068)

Stock
Acquisition
Rights$ 6,494,522 $Minority
Interests

26,441 $15,332,646 $69,049,217
4,772$6,098,961 $ (55,521)$1,170,242$ (528,092) $ (191,068)$ 6,494,522 $Total
Net Assets

138,697

26,441 $15,337,418 $69,187,914

Changes during the period
Issuance of New Shares

7,182

Cash Dividends(1,464,511)

Net Income

5,088,012

Repurchase of Treasury
Stock
Disposition of Treasury
Stock
Transfer from Revaluation
Reserve for Land
Net Changes in Items otherthan Shareholders' Equity
Total Changes during theperiodBalance as of the end of theperiod(2,276)
4,973
15,4408,346,443

276,986

47,182

191,729

1,521,457

10,383,797

5,323 (1,738,051)

8,651,069

8,346,443

276,986

47,182

191,729

1,521,457

10,383,797

5,323 (1,738,051)

12,299,889$14,445,404 $

221,465$1,217,424$ (336,363)$1,330,389$16,878,319 $

31,764 $13,599,367 $81,487,803

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

138

Consolidated Statement of Cash Flows

For the Fiscal Years ended March 31,

Cash Flow from Operating Activities
Income before Income Taxes and Minority Interests
Depreciation
Losses on Impairment of Fixed Assets
Amortization of Goodwill
Gains on Negative Goodwill Incurred
Equity in Loss (Gain) from Investments in Affiliates
Increase (Decrease) in Reserves for Possible Losses on Loans
Increase (Decrease) in Reserve for Possible Losses on
Investments
Increase (Decrease) in Reserve for Possible Losses on Sales of
Loans
Increase (Decrease) in Reserve for Contingencies
Increase (Decrease) in Reserve for Bonus Payments
Decrease (Increase) in Net Defined Benefit Asset
Increase (Decrease) in Net Defined Benefit Liability
Increase (Decrease) in Reserve for Director and Corporate
Auditor Retirement Benefits
Increase (Decrease) in Reserve for Reimbursement of Deposits
Increase (Decrease) in Reserve for Reimbursement ofDebentures
Interest Income—accrual basis
Interest Expenses—accrual basis
Losses (Gains) on Securities
Losses (Gains) on Money Held in Trust
Foreign Exchange Losses (Gains)—net
Losses (Gains) on Disposition of Fixed Assets
Decrease (Increase) in Trading Assets
Increase (Decrease) in Trading Liabilities
Decrease (Increase) in Derivatives other than for Trading Assets
Increase (Decrease) in Derivatives other than for Trading
Liabilities
Decrease (Increase) in Loans and Bills Discounted
Increase (Decrease) in Deposits
Increase (Decrease) in Borrowed Money (excluding
Subordinated Borrowed Money)
Decrease (Increase) in Due from Banks (excluding Due fromCentral Banks)
Decrease (Increase) in Call Loans, etc.
Decrease (Increase) in Guarantee Deposits Paid under
Securities Borrowing Transactions
Increase (Decrease) in Call Money, etc.
Increase (Decrease) in Commercial Paper
Increase (Decrease) in Guarantee Deposits Received under
Securities Lending Transactions
Decrease (Increase) in Foreign Exchange Assets
Increase (Decrease) in Foreign Exchange Liabilities
Increase (Decrease) in Short-term Bonds (Liabilities)
Increase (Decrease) in Bonds and Notes

Millions of yen
2015

2014

Thousands of
U.S. dollars (Note 1)
2015¥ 990,632
156,946
11,3583,698—(15,052)(103,554)¥ 985,366
153,098
6,506
3,672(5,621)(15,491)(143,059)$

8,236,739
1,304,955
94,44630,748—(125,154)(861,015)

(25)

(14)

(209)

(1,245)1,600
5,113(38,437)
4,297

1,210
(16,385)
4,331(32,414)3,011(10,359)
13,30542,517(319,596)
35,733

(19)
(600)

(88)
(12)

(163)
(4,992)(6,078)(1,468,976)
339,543(219,340)(145)(645,471)
8,541
999,513359,772(639,290)

19,538(1,417,569)
309,266(115,111)(97)(903,027)
6,500
2,944,549
228,270
1,809,906(50,537)(12,213,991)
2,823,177(1,823,736)(1,210)(5,366,854)
71,0228,310,582
2,991,370(5,315,458)

386,732(2,289,581)
9,815,972(1,537,943)(1,853,147)
611,766

3,215,539(19,037,015)
81,616,131(544,370)

186,454(4,526,233)

471,141
918,102

195,716
1,920,731

3,917,367
7,633,677

951,399(1,521,429)(253,152)

533,173(1,620,912)(108,048)

7,910,533(12,650,113)(2,104,872)(3,839,692)
88,558
149,446
232,137¥ 992,919(5,240,107)(68,099)
140,124
107,168¥ 25,941(31,925,605)
736,335
1,242,594
1,930,135$ 8,255,751

139

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Statement of Cash Flowsー(Continued)
Millions of yen
2015

For the Fiscal Years ended March 31,

Increase (Decrease) in Due to Trust Accounts
Interest and Dividend Income—cash basis
Interest Expenses—cash basis
Other—net¥

Subtotal
Cash Refunded (Paid) in Income Taxes
Net Cash Provided by (Used in) Operating Activities
Cash Flow from Investing Activities
Payments for Purchase of Securities
Proceeds from Sale of Securities
Proceeds from Redemption of Securities
Payments for Increase in Money Held in Trust
Proceeds from Decrease in Money Held in Trust
Payments for Purchase of Tangible Fixed Assets
Payments for Purchase of Intangible Fixed Assets
Proceeds from Sale of Tangible Fixed Assets
Proceeds from Sale of Intangible Fixed Assets
Payments for Purchase of Stocks of Subsidiaries (affecting thescope of consolidation)
Net Cash Provided by (Used in) Investing Activities
Cash Flow from Financing Activities
Repayments of Subordinated Borrowed Money
Proceeds from Issuance of Subordinated Bonds
Payments for Redemption of Subordinated Bonds
Proceeds from Issuance of Common Stock
Proceeds from Investments by Minority Shareholders
Repayments to Minority Shareholders
Cash Dividends Paid
Cash Dividends Paid to Minority Shareholders
Payments for Repurchase of Treasury Stock
Proceeds from Sale of Treasury Stock
Net Cash Provided by (Used in) Financing Activities
Effect of Foreign Exchange Rate Changes on Cash and Cash
Equivalents
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at the Beginning of the Fiscal Year
Increase (Decrease) in Cash and Cash Equivalents Due toChange of Accounting Period of Subsidiaries
Cash and Cash Equivalents at the End of the Fiscal Year
(Note 39)¥

480,112 ¥
1,476,736(346,060)(84,770)

179,958
1,497,731(328,747)(631,487)

6,826,983(172,024)(2,163,391)(122,650)

56,763,809(1,430,319)

6,654,958(2,286,042)

55,333,490(81,055,617)
76,467,302
7,599,068(5,770)16,408(216,299)(187,451)
1,585
0(72,279,170)
73,065,653
10,156,411(76,215)
3,871(89,425)(142,229)
5,172
0(673,947,100)
635,796,981
63,183,411(47,977)
136,427(1,798,445)(1,558,589)
13,1840—2,619,227(36,584)
10,607,483—
21,777,892(100,000)
150,000(464,705)6
866(241,729)(176,186)(71,644)(12)
2(903,401)(52,500)
154,380(130,700)—
1,069—(152,162)(88,829)(37,013)10(305,744)(831,463)
1,247,194(3,863,848)
51
7,208(2,009,890)(1,464,924)(595,693)(100)
24(7,511,441)

37,565
8,408,350

69,1908,084,887

312,340
69,912,281

19,432,425

11,347,537

161,573,340

—

0

—

27,840,775 ¥ 19,432,425

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

140

2014

Thousands of
U.S. dollars (Note 1)
2015

$

$

3,991,957
12,278,507(2,877,361)(704,838)

231,485,621

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

1. Basis for Presentation
The accompanying consolidated financial statements have been prepared from the accounts maintained by Mizuho
Financial Group, Inc. (“MHFG”) and its consolidated subsidiaries in accordance with the provisions set forth in the
Company Law of Japan and the Financial Instruments and Exchange Law, and in conformity with accounting principles
generally accepted in Japan (“Japanese GAAP”) which are different in certain respects from the application and disclosure
requirements of International Financial Reporting Standards.
Certain items presented in the consolidated financial statements which were previously filed with the Director General of
the Kanto Local Finance Bureau are reclassified for the convenience of readers outside Japan. The notes to theconsolidated financial statements include information which is not required under Japanese GAAP but is presented herein
as additional information.
The amounts indicated in millions of yen are rounded down by truncating the figures below one million. Totals may not
add up exactly because of such truncation. Amounts in U.S. dollars are included solely for the convenience of readers
outside Japan. The rate of ¥120.27=US$1.00, the foreign exchange rate on March 31, 2015 has been used for translation.
The inclusion of such amounts is not intended to imply that Japanese yen has been or could be readily converted, realized
or settled into U.S. dollars at that rate or any other rate.

2. Scope of Consolidation(a) The consolidated financial statements include the accounts of MHFG and its consolidated subsidiaries (collectively, “theGroup”), including Mizuho Bank, Ltd. (“MHBK”), Mizuho Trust & Banking Co., Ltd. (“MHTB”), Mizuho Securities Co., Ltd.
(“MHSC”) and certain other subsidiaries. The numbers of consolidated subsidiaries as of March 31, 2015 and 2014
were 150 and 159, respectively.
In the fiscal year ended March 31, 2015, Mizuho AsiaInfra Capital Pte. Ltd. and two other companies were newly
included in the scope of consolidation as a result of new establishment.
During the period, Mizuho Capital No.2 Limited Partnership and 11 other companies were excluded from the scope of
consolidation as a result of dissolution and other factors.
(b) There were no non-consolidated subsidiaries as of March 31, 2015 and 2014.

3. Application of the Equity Method(a) There were no non-consolidated subsidiaries under the equity method as of March 31, 2015 and 2014.
(b) The numbers of affiliates under the equity method as of March 31, 2015 and 2014 were 21 for each year.
Investments in affiliates include Orient Corporation, The Chiba Kogyo Bank, Ltd., Joint Stock Commercial Bank for
Foreign Trade of Vietnam and certain other affiliates.
(c) There were no non-consolidated subsidiaries not under the equity method as of March 31, 2015 and 2014.
(d) Certain other affiliates, including Asian-American Merchant Bank Limited, are not accounted for under the equity
method, as they are not significant to the consolidated financial statements of MHFG.

141

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

4. Balance Sheet Dates of Consolidated Subsidiaries(a) Balance sheet dates of consolidated subsidiaries for the fiscal year ended March 31, 2015 are as follows:
July 31

1 company

December 29

16 companies

December 31

52 companies

March 3181 companies(b) Consolidated subsidiaries with balance sheet dates of December 29 were consolidated based on their tentative
financial statements as of and for the period ended December 31.
The consolidated subsidiary with balance sheet dates of July 31 was consolidated based on its tentative financial
statement as of and for the period ended the consolidated balance sheet date.
Other consolidated subsidiaries were consolidated based on their financial statements as of and for the period ended
their respective balance sheet dates.
The necessary adjustments have been made to the financial statements for any significant transactions that took
place between their respective balance sheet dates and the date of the consolidated financial statements.

142

5. Standards of Accounting Method(1) Credited Loans pursuant to Trading Securities and Trading Income & Expenses

Credited loans held for the purpose of trading are, in line with trading securities, recognized on a trade date basis andrecorded in Other Debt Purchased on the consolidated balance sheet. Other Debt Purchased related to the relevant
credited loans is stated at fair value at the consolidated balance sheet date.
Interest received and the gains or losses on the sale of the relevant credited loans during the fiscal year, including
the gains or losses resulting from any change in the value between the beginning and the end of the fiscal year, arerecognized in Other Operating Income and Other Operating Expenses on the consolidated statement of income.

(2)Trading Assets & Liabilities and Trading Income & Expenses

Trading transactions intended to take advantage of short-term fluctuations and arbitrage opportunities in interest rates,
currency exchange rates, market prices of securities and related indices are recognized on a trade-date basis andrecorded in Trading Assets or Trading Liabilities on the consolidated balance sheet. Income or expenses generated on
the relevant trading transactions are recorded in Trading Income or Trading Expenses on the consolidated statement ofincome.
Securities and other monetary claims held for trading purposes are stated at fair value at the consolidated balance
sheet date. Derivative financial products, such as swaps, futures and option transactions, are stated at their fair values,
assuming that such transactions are terminated and settled at the consolidated balance sheet date.
Trading Income and Trading Expenses include the interest received and paid during the fiscal year, the gains orlosses resulting from any change in the value of securities and other monetary claims between the beginning and theend of the fiscal year, and the gains or losses resulting from any change in the value of financial derivatives between the
beginning and the end of the fiscal year, assuming they were settled at the end of the fiscal year.

(3) Securities

In accordance with “Accounting Standard for Financial Instruments” (the Business Accounting Deliberation Council,
January 22, 1999), MHFG classifies securities, excluding those of investments in non-consolidated subsidiaries andaffiliates, into three categories based upon management's intent. These securities are accounted for as follows:(i) Trading securities are carried at market value and included in Trading Assets.
(ii) Bonds held to maturity are stated at amortized cost (straight-line method) and determined by the moving averagemethod.
(iii) Other securities are securities which are not classified as either trading securities or bonds held to maturity. Other
securities which have readily determinable fair value are stated at fair value with changes in net unrealized gains orlosses, net of applicable income taxes after excluding gains and losses as a result of the fair-value hedge method,
included directly in Net Assets. The fair value of Japanese stocks is determined based on the average quoted
market price over the month preceding the consolidated balance sheet date. The fair value of securities other thanJapanese stocks is determined at the quoted market price if available, or other reasonable value at the consolidatedbalance sheet date (cost of securities sold is calculated primarily by the moving-average method). Other securities,
the fair values of which are extremely difficult to determine, are stated at acquisition cost or amortized cost which isdetermined by the moving-average method.
In addition, investments in affiliates not under the equity method are stated at acquisition cost as determined by themoving average-method.
Securities which are held as trust assets in Money Held in Trust accounts are valued in the same way as Securities
above.
Certain Securities other than Trading Securities (excluding Securities for which it is deemed to be extremely difficult todetermine the fair value) are devalued to the fair value, and the difference between the acquisition cost and the fairvalue is treated as a loss for the fiscal year (“impairment (devaluation)”), if the fair value (primarily the closing market
price at the consolidated balance sheet date) has significantly deteriorated compared with the acquisition cost (including
amortized cost), and unless it is deemed that there is a possibility of a recovery in the fair value. The amounts of
impairment (devaluation) were ¥3,206 million ($26,661 thousand) and ¥9,366 million for the fiscal years ended March
31, 2015 and 2014, respectively.
The criteria for determining whether a security's fair value has “significantly deteriorated” are outlined as follows:
・Security whose fair value is 50% or less of the acquisition cost143

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

・Security whose fair value exceeds 50% but is 70% or less of the acquisition cost and the quoted market pricemaintains a certain level or lower(4) Bills Discounted

In accordance with “Accounting and Auditing Treatment relating to Adoption of Accounting Standards for Financial
Instruments for Banks” (The Japanese Institute of Certified Public Accountants (“JICPA”) Industry Audit Committee
Report No. 24), bills discounted are accounted for as financing transactions. The banking subsidiaries have rights to sellor pledge these bankers' acceptances, commercial bills, documentary bills and foreign exchange bills purchased. The
face value of these bills amounted to ¥1,370,730 million ($11,397,108 thousand) and ¥1,321,639 million as of March 31,
2015 and 2014, respectively.

(5) Derivative Transactions

Derivative transactions are valued at fair value with changes in fair value included in current income. Derivatives
qualifying as hedges are mainly accounted for using either the fair-value hedge method or the deferred method ofhedge accounting (see (21) Hedge Accounting).

(6) Tangible Fixed Assets (Except for Lease Assets)

Depreciation of buildings is computed mainly by the straight-line method, and that of others is computed mainly by the
declining-balance method. The range of useful lives is as follows:
Buildings 3 years to 50 years
Others2 years to 20 years(7) Intangible Fixed Assets (Except for Lease Assets)

Amortization of Intangible Fixed Assets is computed by the straight-line method. Development costs for internally-usedsoftware are capitalized and amortized over their estimated useful lives of mainly from five to ten years as determinedby MHFG and its consolidated subsidiaries.

(8) Lease Assets

Depreciation of lease assets booked in Tangible Fixed Assets and Intangible Fixed Assets which are concerned withfinance lease transactions that do not transfer ownership is mainly computed by the same method as the one applied to
fixed assets owned by us.

(9) Deferred Assets

Bond issuance costs are expensed as incurred.

144

(10) Reserves for Possible Losses on Loans

Reserves for Possible Losses on Loans of major domestic consolidated subsidiaries are maintained in accordance withinternally established standards for write-offs and reserve provisions:• For claims extended to obligors that are legally bankrupt under the Bankruptcy Law, Special Liquidation under theCompany Law or other similar laws (“Bankrupt Obligors”), and to obligors that are effectively in similar conditions(“Substantially Bankrupt Obligors”), reserves are maintained at the amounts of claims net of direct write-offs
described below and the expected amounts recoverable from the disposition of collateral and the amounts
recoverable under guarantees.
• For claims extended to obligors that are not yet legally or formally bankrupt but are likely to be bankrupt (“Intensive
Control Obligors”), reserves are maintained at the amounts deemed necessary based on overall solvency analyses of
the amounts of claims net of expected amounts recoverable from the disposition of collateral and the amounts
recoverable under guarantees.
• For claims extended to Intensive Control Obligors and Obligors with Restructured Loans (defined in Note 12 below)
and others, if the exposure to an obligor exceeds a certain specific amount, reserves are provided as follows:(i) if future cash flows of the principal and interest can be reasonably estimated, the discounted cash flow method isapplied, under which the reserve is determined as the difference between the book value of the loan and its
present value of future cash flows discounted using the contractual interest rate before the loan was classified asa Restructured Loan, and(ii) if future cash flows of the principal and interest cannot be reasonably estimated, reserves are provided for thelosses estimated for each individual loan.
• For claims extended to other obligors, reserves are maintained at rates derived from historical credit loss experienceand other factors.
• Reserve for Possible Losses on Loans to Restructuring Countries is maintained in order to cover possible losses
based on analyses of the political and economic climates of the countries. All claims are assessed by each claim
origination department in accordance with the internally established “Self-assessment Standard,” and the results of
the assessments are verified and examined by the independent examination departments.
In the case of claims to Bankrupt Obligors and Substantially Bankrupt Obligors, which are collateralized or
guaranteed by a third party, the amounts deemed uncollectible (calculated by deducting the anticipated proceeds fromthe sale of collateral pledged against the claims and amounts that are expected to be recovered from guarantors of theclaims) are written off against the respective claim balances. The total directly written-off amounts were ¥227,209 million($1,889,166 thousand) and ¥195,157 million as of March 31, 2015 and 2014, respectively.
Other consolidated subsidiaries provide the amount necessary to cover the loan losses based upon past experienceand other factors for general claims and the assessment for each individual loan for other claims.

(11) Reserve for Possible Losses on Investments

Reserve for Possible Losses on Investments is maintained to provide against possible losses on investments insecurities, after taking into consideration the financial condition and other factors concerning the investee company.

(12) Reserve for Bonus Payments

Reserve for Bonus Payments, which is provided for future bonus payments to employees, is maintained at the amountaccrued at the end of the fiscal year, based on the estimated future payments.

(13) Reserve for Director and Corporate Auditor Retirement Benefits

Reserve for Director and Corporate Auditor Retirement Benefits, which is provided for future retirement benefit
payments to directors, corporate auditors, and executive officers, is recognized at the amount accrued by the end of therespective fiscal year, based on the internally established standards.

(14) Reserve for Possible Losses on Sales of Loans

Reserve for Possible Losses on Sales of Loans is provided for possible future losses on sales of loans at the amountdeemed necessary based on a reasonable estimate of possible future losses.

145

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(15) Reserve for Contingencies

Reserve for Contingencies is maintained to provide against possible losses from contingencies, which are not coveredby other specific reserves. The balance is an estimate of possible future losses considered to require a reserve.

(16) Reserve for Reimbursement of Deposits

Reserve for Reimbursement of Deposits is provided against the losses for the deposits derecognized from Liabilities atthe estimated amount of future claims for withdrawal by depositors.

(17) Reserve for Reimbursement of Debentures

Reserve for Reimbursement of Debentures is provided for the debentures derecognized from Liabilities at the estimatedamount for future claims.

(18) Reserve under Special Laws

Reserve under Special Laws is Reserve for Contingent Liabilities from Financial Instruments and Exchange of ¥1,607
million ($13,369 thousand) and ¥1,273 million as of March 31, 2015 and 2014, respectively. This is the reserve pursuant
to Article 46-5 of the Financial Instruments and Exchange Law and Article 175 of the Cabinet Office Ordinanceregarding Financial Instruments Business, etc. to indemnify the losses incurred from accidents in the purchase and saleof securities, other transactions or derivative transactions.

(19) Accounting Method for Retirement Benefits

In calculating retirement benefit obligations, a benefit formula basis is used as a method of attributing expected
retirement benefits to the period up to the end of this fiscal year. Unrecognized actuarial differences are recognized asincome or expenses from the following fiscal year under the straight-line method over a certain term within the averageremaining service period of the employees (mainly 10 years) of the respective fiscal years.
Certain consolidated subsidiaries apply the simplified method that assumes the amount required for voluntary
resignation at the end of the term to be retirement benefit obligations in computing net defined benefit liability andretirement benefit expenses.

(20) Assets and Liabilities Denominated in Foreign Currencies

Assets and liabilities denominated in foreign currencies and accounts of overseas branches of domestic consolidatedbanking subsidiaries and a domestic consolidated trust banking subsidiary are translated into Japanese yen primarily atthe exchange rates in effect at the consolidated balance sheet date, with the exception of the investments in affiliates
not under the equity method, which are translated at historical exchange rates.
Assets and liabilities denominated in foreign currencies of the consolidated subsidiaries, except for the transactions
mentioned above, are translated into Japanese yen primarily at the exchange rates in effect at the respective balance
sheet dates.

146

(21) Hedge Accounting(a) Interest Rate Risk
The deferred method, the fair-value hedge method or the exceptional accrual method for interest rate swaps areapplied as hedge accounting methods.
The portfolio hedge transaction for a large volume of small-value monetary claims and liabilities of domestic
consolidated banking subsidiaries and some of domestic consolidated trust banking subsidiaries is accounted for by
the method stipulated in the JICPA Industry Audit Committee Report No.24.
The effectiveness of hedging activities for the portfolio hedge transaction for a large volume of small-valuemonetary claims and liabilities is assessed as follows:(i) as for hedging activities to offset market fluctuation risks, the effectiveness is assessed by bracketing both thehedged instruments, such as deposits and loans, and the hedging instruments, such as interest-rate swaps, inthe same maturity bucket.
(ii) as for hedging activities to fix the cash flows, the effectiveness is assessed based on the correlation between thebase interest rate index of the hedged instrument and that of the hedging instrument.
The effectiveness of the individual hedge is assessed based on the comparison of the fluctuation in the market orof cash flows of the hedged instruments with that of the hedging instruments.
Deferred Gains or Losses on Hedges recorded on the consolidated balance sheet resulted from the application of
the macro-hedge method based on the “Tentative Accounting and Auditing Treatment relating to Adoption of
Accounting Standards for Financial Instruments for Banks” (JICPA Industry Audit Committee Report No.15), underwhich the overall interest rate risks inherent in loans, deposits and other instruments are controlled on a macro-basis
using derivatives transactions. These deferred hedge gains/losses are amortized as interest income or interest
expenses over the remaining maturity and average remaining maturity of the respective hedging instruments.
The unamortized amounts of gross deferred hedge losses on the macro-hedges, before net of applicable income
taxes, were ¥856 million ($7,123 thousand) and ¥1,849 million as of March 31, 2015 and 2014, respectively. The
unamortized amounts of gross deferred hedge gains on the macro-hedges, before net of applicable income taxes,
were ¥704 million ($5,860 thousand) and ¥1,500 million as of March 31, 2015 and 2014, respectively.
(b) Foreign Exchange Risk
Domestic consolidated banking subsidiaries and some of domestic consolidated trust banking subsidiaries apply thedeferred method of hedge accounting to hedge foreign exchange risks associated with various financial assets andliabilities denominated in foreign currencies as stipulated in the “Accounting and Auditing Treatment relating to
Adoption of Accounting Standards for Foreign Currency Transactions for Banks” (JICPA Industry Audit Committee
Report No.25). The effectiveness of the hedge is assessed by confirming that the amount of the foreign currency
position of the hedged monetary claims and liabilities is equal to or larger than that of currency-swap transactions,exchange swap transactions, and similar transactions designated as the hedging instruments of the foreignexchange risk.
In addition to the above methods, these subsidiaries apply the deferred method or the fair-value hedge method toportfolio hedges of the foreign exchange risks associated with investments in subsidiaries and affiliates denominatedin foreign currency and Other securities denominated in foreign currency (except for bonds) identified as hedged
items in advance, as long as the amount of foreign currency payables of spot and forward foreign exchange
contracts exceeds the amount of acquisition cost of the hedged foreign securities denominated in foreign currency.
(c) Inter-company Transactions
Inter-company interest rate swaps, currency swaps and similar derivatives among consolidated companies or
between trading accounts and other accounts, which are designated as hedges, are not eliminated and related gains
and losses are recognized in the statement of income or deferred under hedge accounting, because these intercompany derivatives are executed according to the criteria for appropriate outside third-party cover operations which
are treated as hedge transactions objectively in accordance with JICPA Industry Audit Committee Reports No.24 and25.
As for certain assets and liabilities of MHFG and its consolidated subsidiaries, the deferred method, the fair-value
hedge method or the exceptional accrual method for interest rate swaps are applied.

147

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(22) Consumption Taxes and OtherWith respect to MHFG and its domestic consolidated subsidiaries, Japanese consumption taxes and local consumption
taxes are excluded from transaction amounts.

(23) Amortization Method of Goodwill and Amortization Period

Goodwill of Mizuho Trust & Banking Co., Ltd. is amortized over a period of 20 years under the straight-line method.
Other Goodwill is amortized over an appropriate period not to exceed 20 years under the straight-line method. The fullamount of Goodwill that has no material impact is expensed as incurred.

(24) Scope of Cash and Cash Equivalents on Consolidated Statement of Cash Flows

In the consolidated statement of cash flows, Cash and Cash Equivalents consist of cash and due from central banks
included in “Cash and Due from Banks” on the consolidated balance sheet.

6. Change in Accounting Policies

Application of “Accounting Standard for Retirement Benefits” and others
Mizuho Financial Group has applied “Accounting Standard for Retirement Benefits” (ASBJ Statement No. 26, May 17,2012) (hereinafter, the “Accounting Standard”) and “Guidance on Accounting Standard for Retirement Benefits” (ASBJ
Guidance No. 25, March 26, 2015) (hereinafter, the “Guidance”), in terms of regulations stipulated in the text of the
Accounting Standard, Paragraph 35 and the Guidance, Paragraph 67, beginning with the fiscal year ended March 31,
2015. We have reviewed the calculation methods of retirement benefit obligations and service cost, changed themethod of attributing the expected retirement benefits to periods of service from a straight-line basis to a benefit formulabasis, and changed the method of determining the discount rate from the method using the discount rate based on the
average period up to the estimated timing of the benefit payment and another period to the method using different
discount rates according to the estimated timing of each benefit payment.
The Accounting Standard and the Guidance have been applied in accordance with the transitional treatment
stipulated in the Accounting Standard, Paragraph 37, and the amount of financial impact resulting from the change inthe calculation method of retirement benefit obligations and service cost was added to or deducted from retained
earnings at the beginning of the fiscal year ended March 31, 2015.
As a result of this, Net Defined Benefit Asset increased by ¥19,795 million ($164,594 thousand), Net Defined Benefit
Liability decreased by ¥2,787 million ($23,175 thousand), Retained Earnings increased by ¥16,107 million ($133,925
thousand) and Minority Interests increased by ¥573 million ($4,772 thousand) at the beginning of the fiscal year ended
March 31, 2015. Ordinary Profits and Income before Income Taxes and Minority Interests for the fiscal year ended
March 31, 2015 increased by ¥8,217 million ($68,324 thousand), respectively.

7. Issued but not yet Adopted Accounting Standard and Others

Accounting Standard for Business Combinations (September 13, 2013)(i) Overview
This accounting standard was revised mainly focusing on (a)the treatment of the parent company’s changes inequity of its subsidiary while the parent company’s control is continuing because of additional acquisition of sharesof the subsidiary, (b)the treatment of acquisition-related expenses, (c)the treatment of provisional accounting, and(d)the presentation of Net Income and the change from minority interests to non-controlling interests.
(ii) Scheduled Date of Application
Mizuho Financial Group is scheduled to apply this accounting standard after revision from the beginning of the fiscal
year starting on April 1, 2015.
(iii) Effect of Application of this accounting standard
The effect of the application of this accounting standard is under consideration.

8. Change in Presentation of Financial Statements

Refund of Income Taxes separately presented in the previous fiscal year has been included within Current Income
Taxes from this fiscal year due to decreased materiality. Refund of Income Taxes presented in the previous fiscal year
was ¥(5,629) million.

148

9. Securities Lending and Borrowing Transactions

MHFG does not have unsecured loaned securities which the borrowers have the right to sell or repledge as of March 31,
2015 and 2014. MHFG has the right to sell or repledge some of unsecured borrowed securities, securities purchased underresale agreements and securities borrowed with cash collateral. Among them, the totals of securities repledged were¥12,240,951million ($101,778,924 thousand) and ¥9,853,276 million as of March 31, 2015 and 2014, respectively, andsecurities neither repledged nor re-loaned were ¥1,264,787 million ($10,516,236 thousand) and ¥1,681,484 million as ofMarch 31, 2015 and 2014, respectively.

10. Trading Assets and Liabilities
As of March 31,

Trading Assets:
Trading Securities
Derivatives for Trading
Transactions
Derivatives for Trading Securities
Total
Trading Liabilities:
Trading Securities Sold Short
Derivatives for Trading
Transactions
Derivatives for Trading Securities
Total

Millions of yen
2015

2014

Thousands of U.S. dollars
2015¥ 5,042,005¥ 7,038,301$ 41,922,387

5,526,350
213,379

4,231,907
199,60245,949,537
1,774,171¥ 10,781,735¥ 11,469,811$ 89,646,095¥ 3,200,813¥ 4,309,956$ 26,613,564

5,335,870
206,5123,690,911
182,168

44,365,763
1,717,074¥ 8,743,196¥ 8,183,037$ 72,696,401

149

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

11. Securities
Millions of yen
2015

As of March 31,

Japanese Government Bonds
Japanese Local Government Bonds
Japanese Short-term Bonds
Japanese Corporate Bonds
Japanese Stocks*1
Other*2
Total¥ 21,775,918
238,58799
2,674,037
4,500,792
14,089,298¥ 43,278,733

2014

Thousands of U.S. dollars
2015¥ 26,097,592
244,66299
2,792,469
3,525,077
11,337,616¥ 43,997,517$ 181,058,602
1,983,769
831
22,233,617
37,422,400
117,147,237$ 359,846,456*1 Japanese Stocks included investments in non-consolidated subsidiaries and affiliates of ¥229,160 million ($1,905,386 thousand) and ¥214,799 million as ofMarch 31, 2015 and 2014, respectively.
*2 Other included investments in non-consolidated subsidiaries and affiliates of ¥62,814 million ($522,276 thousand) and ¥58,695 million as of March 31, 2015
and 2014, respectively.

12. Loans and Bills Discounted
Millions of yen
2015

2014

Thousands of U.S. dollars
2015¥ 61,263,590
7,960,639
3,216,933
418,171¥ 58,101,716
7,862,209
2,603,952
343,933$ 509,383,807
66,189,736
26,747,594
3,476,937

551,112
4,723
73,415,170

385,181
4,412¥ 69,301,405

4,582,292
39,277$ 610,419,643

As of March 31,

Loans on Deeds
Overdrafts
Loans on Notes
Bills Discounted
Financing Receivables, including
Factoring, Leasing and Property
Financing
Other
Total

¥

Loans and Bills Discounted as of March 31, 2015 and 2014 include the following:
Millions of yen
2015

As of March 31,

Loans to Bankrupt Obligors*1
Non-Accrual Delinquent Loans*2
Loans Past Due for Three Months or More*3
Restructured Loans*4
Total

2014

Thousands of U.S. dollars
2015¥

10,246425,778
3,496
614,928¥

12,194
508,001
4,109
504,600$

85,2003,540,192
29,075
5,112,898¥

1,054,450¥

1,028,905$

8,767,365*1 Loans to Bankrupt Obligors represent non-accrual loans to obligors who are legally bankrupt as defined in Article 96, Paragraph 1, Items 3 and 4 of the
Corporate Tax Law Enforcement Ordinance (Government Ordinance No.97, 1965).
*2 Non-Accrual Delinquent Loans represent non-accrual loans other than (i) Loans to Bankrupt Obligors and (ii) loans of which payments of interest are
deferred in order to assist or facilitate the restructuring of obligors in financial difficulties.
*3 Loans to Bankrupt Obligors or Non-Accrual Delinquent Loans, both of which are classified as non-accrual, are not included in this category.
*4 Restructured Loans represent loans on which contracts were amended in favor of obligors (e.g., the reduction of or exemption from stated interest, thedeferral of interest payments, the extension of maturity dates, or renunciation of claims) in order to assist or facilitate the restructuring of obligors in financial
difficulties.
Note: The amounts given in the above table are gross amounts before deduction of amounts for the Reserves for Possible Losses on Loans.

150

Commitment Line for Loans
Overdraft protection on current accounts and contracts of the commitment line for loans are contracts by which banking
subsidiaries are bound to extend loans up to the prearranged amount, at the request of customers, unless the customer isin breach of contract conditions. The unutilized balance of these contracts amounted to ¥82,839,928 million ($688,782,972
thousand) and ¥69,141,157 million as of March 31, 2015 and 2014, respectively. Of these amounts, ¥64,322,076 million($534,813,969 thousand) and ¥57,623,467 million as of March 31, 2015 and 2014, respectively, relate to contracts ofwhich the original contractual maturity is one year or less, or which are unconditionally cancelable at any time.
Since many of these contracts expire without being exercised, the unutilized balance itself does not necessarily affectfuture cash flows. A provision is included in many of these contracts that entitles the banking subsidiaries to refuse theexecution of loans, or reduce the maximum amount under contracts when there is a change in the financial situation,necessity to preserve a claim, or other similar reasons. The banking subsidiaries require collateral such as real estate andsecurities when deemed necessary at the time the contracts are entered into. In addition, they periodically monitor
customers’ business conditions in accordance with internally established standards and take necessary measures tomanage credit risks such as amendments to contracts.

13. Foreign Exchange Assets and Liabilities
Millions of yen
2015

As of March 31,

Foreign Exchange Assets:
Foreign Bills Bought
Foreign Bills Receivable
Due from Banks (Foreign)
Advance to Foreign Banks
Total
Foreign Exchange Liabilities:
Due to Banks (Foreign)
Advance from Foreign Banks
Foreign Bills Payable
Foreign Bills Sold
Total

¥

952,558
416,944
254,167
65

¥

2014

977,705
449,024
136,836
12,600Thousands of U.S. dollars
2015$

7,920,171
3,466,741
2,113,307
542¥ 1,623,736¥ 1,576,167$ 13,500,761¥

416,320
25,80026,251
4,688¥

289,017
9,455
20,226
4,628$

3,461,551
214,519
218,268
38,981¥

473,060¥

323,327$

3,933,319

Millions of yen
2015

2014

14. Other Assets
As of March 31,

Accrued Income
Prepaid Expenses
Other
Total

¥

281,063
43,2583,742,102¥ 4,066,424¥

264,605
40,114
2,536,000¥ 2,840,720

Thousands of U.S. dollars
2015$

2,336,940
359,675
31,114,178$ 33,810,793

151

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

15. Tangible Fixed Assets
Millions of yen
2015

As of March 31,

Land
Buildings
Lease Assets
Construction in Progress
Other
Total
Accumulated Depreciation
Book Value Adjusted for Gains on
Sales of Replaced Assets andOthers2014

Thousands of U.S. dollars
2015¥

612,901
340,101
18,566
13,786
92,695¥459,986
323,194
18,83834,83088,415$5,096,047
2,827,820
154,372
114,629
770,725¥

1,078,051¥

925,266$

8,963,593¥

842,605¥

814,210$

7,005,948

35,68536,189296,7112014

Thousands of U.S. dollars
2015

16. Reserves for Possible Losses on Loans
Millions of yen
2015

As of March 31,

General Reserve for Possible
Losses on Loans
Specific Reserve for Possible
Losses on Loans
Reserve for Possible Losses on
Loans to Restructuring Countries
Total

¥

(344,496)¥(180,386)¥(603)(525,486)(398,737)$(216,787)¥(782)(616,307)

Millions of yen
2015

2014

(2,864,358)(1,499,849)$(5,019)(4,369,226)

17. Assets Pledged as Collateral
The following assets were pledged as collateral:
As of March 31,

Trading Assets
Securities
Loans and Bills Discounted
Other Assets¥ 2,567,206
11,209,154
6,580,383
1,006¥ 4,455,104
15,486,954
8,528,194
1,112

Thousands of U.S. dollars
2015$

21,345,362
93,199,924
54,713,423
8,371

The following liabilities were collateralized by the above assets:
Millions of yen
2015

As of March 31,

Deposits
Call Money and Bills Sold
Payables under Repurchase
Agreements
Guarantee Deposits Received
under Securities Lending
Transactions
Borrowed Money152¥

772,816
1,265,000¥

2014

877,876
1,708,200

Thousands of U.S. dollars
2015$

6,425,681
10,518,001

7,861,692

6,883,769

65,367,032

2,121,374
5,516,730

6,049,378
5,934,019

17,638,435
45,869,552

In addition, the settlement accounts of foreign and domestic exchange transactions or derivatives transactions and others
were collateralized, and margins for futures transactions were substituted by Cash and Due from Banks of ¥34,156 million($284,001 thousand) and ¥30,438 million, Trading Assets of ¥210,434 million ($1,749,687 thousand) and ¥152,908 million,
Securities of ¥4,518,541 million ($37,569,980 thousand) and ¥3,172,665 million, and Loans and Bills Discounted of¥191,639 million ($1,593,407 thousand) and ¥159,954 million as of March 31, 2015 and 2014, respectively.
Other Assets included guarantee deposits of ¥119,437 million ($993,078 thousand) and ¥127,301 million, collateralpledged for derivatives transactions of ¥529,449 million ($4,402,174 thousand) and ¥275,812 million, margins for futurestransactions of ¥193,743 million ($1,610,907 thousand) and ¥141,401 million, and other guarantee deposits of ¥41,713
million ($346,836 thousand) and ¥35,637 million as of March 31, 2015 and 2014, respectively.

18. Deposits
Millions of yen
2015

As of March 31,

Current Deposits
1
Ordinary Deposits*
Deposits at NoticeTime Deposits
Negotiable Certificates of Deposit
Other
Total

¥

7,183,120
45,900,575
863,870
38,409,156
15,694,906
5,400,823¥ 113,452,451

2014

Thousands of U.S. dollars
2015

6,625,385
41,564,578
909,863
35,409,276
12,755,776
4,546,400¥ 101,811,282$ 59,724,955
381,646,093
7,182,757
319,357,749
130,497,265
44,905,822$ 943,314,641¥*1 Ordinary Deposits includes savings deposits.

19. Call Money and Bills Sold
Millions of yen
2015

As of March 31,

Call Money
Bills Sold
Total

¥
¥

5,091,198—
5,091,198

¥
¥

2014

Thousands of U.S. dollars
2015

7,194,432—
7,194,432$$

42,331,405—
42,331,405

20. Commercial Paper
As of March 31,

Commercial Paper

Millions of yen
2015¥538,511

2014¥677,459

Thousands of U.S. dollars
2015$ 4,477,520

Average interest rates*1
2015
2014

0.22%

0.20%

*1 Average interest rates are the weighted-average interest rates of debts calculated from the interest rates and outstanding balances at the end of the fiscal
year.

153

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

21. Borrowed Money
Millions of yen
2015

As of March 31,

Borrowed Money
Bills rediscounted¥7,195,869―

2014¥7,838,357―

Thousands of U.S. dollars
2015

7,195,869

7,838,357

59,830,961

2,3

Other Borrowings*$ 59,830,961―

Average interest rates*1
2015
2014

0.32%
—%

0.32%
—%

0.32%

0.32%

*1 Average interest rates are the weighted-average interest rates of debts calculated from the interest rates and outstanding balances at the end of the fiscal
year.
*2 Other Borrowings included subordinated debt of ¥456,000 million ($3,791,469 thousand) and ¥556,000 million as of March 31, 2015 and 2014, respectively.
*3 Repayments for Other Borrowings are scheduled for the next five years as follows:
Fiscal year ending March 31, 2016 ¥ 965,869 million ($ 8,030,842 thousand)2017 ¥ 982,827 million ($ 8,171,840 thousand)2018 ¥ 122,026 million ($ 1,014,601 thousand)2019 ¥ 4,246,985 million ($ 35,312,094 thousand)2020 ¥
58,987 million ($490,457 thousand)

22. Short-term Bonds
Major components of Short-term Bonds at March 31, 2015 were as follows:
IssuerIssue

Millions of yen Thousands of U.S. dollars

MHFG

Jan. 2015–Mar. 2015

¥

MHBK

Mar. 2015

MHSC

Oct. 2014–Mar. 2015

*1

Oct. 2014–Mar. 2015

Total

¥

261,000[261,000]
25,000[25,000]
456,500[456,500]
74,205[74,205]
816,705$$2,170,117[2,170,117]
207,866[207,866]
3,795,627[3,795,627]
616,990[616,990]
6,790,600

Interest rates

0.11%
0.06%
0.03%–0.12%
0.12%–0.28%

Due

Apr. 2015–
Jun. 2015
Apr. 2015
Apr. 2015–
Oct. 2015
Apr. 2015–
May 2015*1 indicates the total amount of Short-term Bonds issued by the domestic consolidated subsidiary, Allstar Funding Co., Ltd, and theoverseas consolidated subsidiaries, BLUE HEAVEN FUNDING CORPORATION, ASTRO CAPITAL CORPORATIONⅡand ETERNALFUNDING CORPORATION.

Notes: 1. Figures indicated in brackets [ ] represent the amounts to be redeemed within one year.
2. No collateral was provided for the above Short-term Bonds.
Major components of Short-term Bonds at March 31, 2014 were as follows:
IssuerIssue

Millions of yen

MHFG

Jan. 2014–Feb. 2014

¥

MHBK

Interest rates

182,000

0.22%

Mar. 2014

25,000

0.08%

MHSC

Oct. 2013–Mar. 2014

290,100

0.06%–0.11%*1Oct. 2013–Mar. 2014

87,468

0.13%–0.31%

Total

¥

584,568*1 indicates the total amount of Short-term Bonds issued by the domestic consolidated subsidiary, Allstar Funding Co., Ltd, and theoverseas consolidated subsidiaries, BLUE HEAVEN FUNDING CORPORATION and ASTRO CAPITAL CORPORATIONⅡ.

Note: No collateral was provided for the above Short-term Bonds.

154

Due

Apr. 2014–
May 2014
Apr. 2014
Apr. 2014–
Sep. 2014
Apr. 2014–
May 2014

23. Bonds and Notes
Major components of Bonds and Notes as of March 31, 2015 were as follows:
IssuerDescription

Issue

MHFG

Straight Bonds

MHTB

Straight Bonds

MHBK

Straight Bonds*1

Straight Bonds

Jul. 2012–
Mar. 2014*2

Straight Bonds*3

Straight Bonds

Jul. 1995–
May 2012
Jan. 2003–
Mar. 2015

Total

Jul. 2014–
Dec.2014
Dec. 2005–
Aug. 2009
Aug. 2005–
Mar. 2015

Millions of yen¥ 150,000[—]
42,200[30,000]
4,624,117[540,420](US$ 14,249,587 thousand)(AUD 660,000 thousand)(SGD 100,000 thousand)
359,949[—](US$ 2,992,846 thousand)
54,000[—]783,464[179,556](US$ 655,930 thousand)(AUD 18,970 thousand)(EUR 371,047 thousand)(BRL 14,500 thousand)¥ 6,013,731

Thousands of U.S.
dollars$ 1,247,194[—]
350,877[249,439]
38,447,805[4,493,392]

Interest
rates

0.62%–
4.25%
1.91%–
3.19%
0.10%–
9.00%

Due

Jul. 2024Dec. 2029
Dec. 2015–
Apr. 2015–

2,992,847[—]

4.20%– Jul. 2022–
4.60%
Mar. 2024

448,990[—]
6,514,216[1,492,942]

1.30%–
3.90%
0.00%–
18.80%

Jun. 2018–
Apr. 2015–
Mar. 2045$ 50,001,929*1 indicates the total amount of straight bonds issued by the overseas consolidated subsidiaries, Mizuho Financial Group (Cayman) Limited, Mizuho Financial
Group (Cayman) 2 Limited and Mizuho Financial Group (Cayman) 3 Limited.
*2 indicates the total amount of straight bonds issued by the overseas consolidated subsidiaries, Mizuho Finance (Cayman) Limited,
Mizuho Finance (Curaçao) N.V. and Mizuho Finance (Aruba) A.E.C.
*3 indicates the total amount of straight bonds issued by the domestic consolidated subsidiary, MHSC, and the overseas consolidated subsidiaries, Mizuho
International plc, Mizuho Bank (China),Ltd and Mizuho Securities USA Inc.

Notes: 1. Figures indicated in brackets [ ] represent the amounts to be redeemed within one year.
2. The amounts of foreign currency-denominated bonds are shown in original currencies in parentheses ( ).
3. Repayments for Bonds and Notes are scheduled for the next five years as follows:
Fiscal year ending March 31, 2016 ¥ 1,566,681 million ($13,026,373 thousand)2017 ¥ 740,623 million ($ 6,158,005 thousand)2018 ¥ 1,366,009 million ($11,357,858 thousand)2019 ¥ 406,159 million ($ 3,377,064 thousand)2020 ¥ 844,199 million ($ 7,019,199 thousand)4. Bonds and Notes as of March 31, 2015 included subordinated bonds and notes of ¥1,409,149 million($11,716,552 thousand).
5. No collateral was provided for the above Bonds and Notes.

155

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Major components of Bonds and Notes as of March 31, 2014 were as follows:
IssuerDescription

Issue

MHBK

Straight Bonds

Aug. 2004–
Mar. 2014

MHTB

Straight Bonds*1

Straight Bonds*2

Straight Bonds*3

Straight Bonds

Dec. 2005–
Aug. 2009
Mar. 2004–
Mar. 2014
Jul. 1995–
May 2012
Sep. 2002–
Mar. 2014

Total

Millions of yen¥ 3,958,105(US$ 5,796,166 thousand)(AUD 180,000 thousand)
61,500462,323(US$ 4,492,068 thousand)
57,400706,414(US$ 326,370 thousand)(AUD
10,320 thousand)(EUR 160,800 thousand)(CNY 1,249,507 thousand)¥ 5,245,743

Interest
rates

0.10%–
7.12%

Due

Apr. 2014–

1.91%– Dec. 2015–
3.38%
4.20%– Apr. 2014–
5.79%
Mar. 2024
1.30%– Jun. 2018–
3.90%
0.00%– Apr. 2014–18.10% Mar. 2044

*1 indicates the total amount of straight bonds issued by the overseas consolidated subsidiaries, Mizuho Financial Group (Cayman) Limited, Mizuho Financial
Group (Cayman) 2 Limited and Mizuho Financial Group (Cayman) 3 Limited.
*2 indicates the total amount of straight bonds issued by the overseas consolidated subsidiaries, Mizuho Finance (Cayman) Limited,
Mizuho Finance (Curaçao) N.V. and Mizuho Finance (Aruba) A.E.C.
*3 indicates the total amount of straight bonds issued by the domestic consolidated subsidiary, MHSC, and the overseas consolidated subsidiaries, Mizuho
International plc, Mizuho Bank (China),Ltd and Mizuho Securities USA Inc.

Notes: 1. The amounts of foreign currency-denominated bonds are shown in original currencies in parentheses ( ).
2. Repayments for Bonds and Notes are scheduled for the next five years as follows:
Fiscal year ending March 31, 2015 ¥ 1,506,088 million
2016 ¥ 646,269 million
2017 ¥ 707,242 million
2018 ¥ 922,000 million
2019 ¥ 365,998 million
3. Bonds and Notes as of March 31, 2014 included subordinated bonds and notes of ¥1,645,823 million.
4. No collateral was provided for the above Bonds and Notes.

24. Other Liabilities
Millions of yen
2015

As of March 31,

Accrued Expenses
Unearned Income
Income Taxes Payable
1 2
Lease Liabilities* *
Other
Total

¥

139,417
149,019
158,755
29,1283,785,635¥ 4,261,955

2014

¥

137,297
151,975
57,132
26,6793,197,817¥ 3,570,902

Thousands of U.S. dollars
2015$

1,159,202
1,239,039
1,319,989
242,194
31,476,142$ 35,436,566*1 Average interest rate is 1.78% and 2.03% in the fiscal year ended March 31, 2015 and 2014, respectively. It is the weighted-average interest rate of debts
calculated from the interest rates and outstanding balances at the end of the fiscal year.
*2 Repayments for Lease Liabilities are scheduled for the next five years as follows:
Fiscal year ending March 31, 2016 ¥ 7,171 million ($ 59,625 thousand)2017 ¥ 6,481 million ($ 53,895 thousand)2018 ¥ 5,889 million ($ 48,965 thousand)2019 ¥ 5,229 million ($ 43,482 thousand)2020 ¥ 3,309 million ($ 27,514 thousand)156

25. Reserve for Employee Retirement Benefits(1) MHFG and its domestic consolidated subsidiaries have adopted the Corporate Pension Fund Plans (“Kigyo Nenkin
Kikin Seido”), and the Termination Allowance Plans (“Taishoku Ichijikin Seido”) as Defined-Benefit Corporate Pension
Plans. In addition, MHFG and certain domestic consolidated subsidiaries have adopted Defined- Contribution Pension
Plans as a part of the Termination Allowance Plans while certain other domestic consolidated subsidiaries haveestablished employee retirement benefit trusts.
(2) Defined-Benefit Corporate Pension Plans(i) Adjustment between the balances of Retirement Benefit Obligations at the beginning and at the end of the period
Thousands of U.S. dollars

Millions of yen
For the Fiscal Years ended March 31,

Balance of Retirement Benefit Obligations
at the beginning of the period
Cumulative Effects of Changes in Accounting
Policies
Balance as of the beginning of the period
reflecting Changes in Accounting Policies
Service Cost
Interest Cost
Unrecognized Actuarial Differences incurred
Retirement Benefits paid
Other
Balance of Retirement Benefit Obligations
at the end of the period

2015

2014

2015

¥ 1,319,387¥ 1,326,443$ 10,970,215(22,582)―(187,769)

1,296,804
33,703
11,97582,747(67,070)
2,795¥ 1,326,443
31,901
22,496
4,499(67,993)
2,039$ 10,782,446
280,230
99,568688,014(557,670)
23,240¥ 1,360,954¥ 1,319,387$ 11,315,828¥

Note: The above Retirement Benefit Obligations includes the amount measured by certain consolidated subsidiaries under
the simplified method.
(ii) Adjustment between the balances of Plan Assets at the beginning and at the end of the period
Millions of yen
For the Fiscal Years ended March 31,

Balance of Plan Assets
at the beginning of the period
Expected Return on Plan Assets
Unrecognized Actuarial Differences incurred
Contributions from employer
Contributions from employee
Retirement Benefits paid
Other
Balance of Plan Assets at the end of theperiodThousands of U.S. dollars

2015

2014

2015

¥ 1,686,455
36,875
332,40248,776
1,178(49,929)1,058¥ 1,512,741
36,046
134,779
49,524
1,181(49,693)
1,875$ 14,022,243
306,605
2,763,806
405,5629,803(415,145)
8,802¥ 2,056,818¥ 1,686,455$ 17,101,676

157

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(iii) Adjustment between the balances of Retirement Benefit Obligations and Plan Assets at the end of the period andAdjustment to the balances of Net Defined Benefit Liability and Net Defined Benefit Asset recorded in the Consolidated
Balance Sheet
Millions of yen

Retirement Benefit Obligations
Plan Assets
Net amount of Liability and Asset recordedin the Consolidated Balance Sheet

As of March 31,

Net Defined Benefit Liability
Net Defined Benefit Asset
Net amount of Liability and Asset recordedin the Consolidated Balance Sheet(iv)

Thousands of U.S. dollars

2015

2014

2015

¥ 1,360,954(2,056,818)¥ 1,319,387(1,686,455)$ 11,315,828(17,101,676)¥ (695,863)¥(367,067)$ (5,785,848)

2014

Thousands of U.S. dollars
2015

As of March 31,

Millions of yen
2015¥

47,518(743,382)¥

46,006(413,073)$

395,102(6,180,950)¥ (695,863)¥(367,067)$ (5,785,848)

Employee Retirement Benefit Expenses and the breakdown
Millions of yen

For the Fiscal Years ended March 31,

Service Cost
Interest Cost
Expected Return on Plan Assets
Amortization of Unrecognized Actuarial Differences
Other
Net Retirement Benefit Expenses for DefinedBenefit Corporate Pension Plans

2015

Thousands of U.S. dollars
2014

2015

¥

32,967
11,975(36,875)
22,5485,411¥

30,94722,496(36,046)
21,162
5,236$

274,10999,568(306,605)
187,480
44,991¥

36,026¥

43,797$

299,543

Notes: 1. The amount of employee contributions to Mizuho Pension Fund is deducted from Service Cost.
2. Retirement benefit expenses of some consolidated subsidiaries which adopt the simplified method for calculating
retirement benefit obligations are included in Service Cost in full.
(v)

Remeasurements of Defined Benefit Plans in Other Comprehensive Income

Breakdown of Remeasurements of Defined Benefit Plans in Other Comprehensive Income (before deducting tax effect)
was as follows:
For the Fiscal Years ended March 31,

Unrecognized Actuarial Differences
Total
(vi)

¥
¥

Millions of yen
2015

2014

Thousands of U.S. dollars
2015

¥
¥

―
―

$ (2,263,352)$ (2,263,352)(272,213)(272,213)

Remeasurements of Defined Benefit Plans in Total Accumulated Other Comprehensive Income

Breakdown of Remeasurements of Defined Benefit Plans in Total Accumulated Other Comprehensive Income (before
deducting tax effect) was as follows:
Millions of yen
2015

As of March 31,

Unrecognized Actuarial Differences
Total

158

¥
¥

(229,825)(229,825)

¥
¥

2014

Thousands of U.S. dollars
2015

42,38842,388$ (1,910,910)$ (1,910,910)

(vii)

Plan Assets(a) Ratio of each category to the total amount of Plan Assets was as follows:
As of March 31,

Japanese Stocks
Japanese Bonds
Foreign Stocks
Foreign Bonds
General account of life insurance companies
Other
Total

2015

2014

56.33%
16.59%
12.65%
4.65%
5.73%
4.05%
100.00%49.68%
19.09%
14.23%
5.05%
6.60%
5.35%
100.00%Note: The total amount of Plan Assets includes 57.20% and 52.11% of Employee Retirement Benefit Trusts established for
the Corporate Pension Fund Plans and the Termination Allowance Plans as of March 31, 2015 and 2014, respectively.
(b) Calculation of Expected Long-term Rate of Return on Plan Assets
In determining the Expected Long-term Rate of Return on Plan Assets, current and expected allocation of Plan
Assets and current and expected future long-term rate of return from various assets constituting Plan Assets havebeen considered.
(viii) Basis of Actuarial Calculation
Major Basis of Actuarial Calculation
2015

mainly 0.07%- 1.62%

2014

Discount Rate
Expected Long-term Rate of Return on Plan Assets

mainly 1.82%- 2.40%

mainly 1.70%
mainly 1.93%- 2.80%

For the Fiscal Years ended March 31,(3) Defined- Contribution Pension Plans
The required amount of contributions to Defined- Contribution Pension Plans of MHFG and its domestic consolidated
subsidiaries was ¥2,498 million ($ 20,776 thousand) and ¥2,437 million for the fiscal years ended March 31, 2015
and 2014, respectively.

26. Acceptances and Guarantees(1) All commitments and contingent liabilities of a material nature resulting from guarantees or otherwise are included in thecontra-accounts Acceptances and Guarantees and Customers' Liabilities for Acceptances and Guarantees.
The outstanding balances of the accounts were as follows:
Millions of yen
2015

As of March 31,

Guarantees
Letters of Credit
Acceptances
Total

2014

Thousands of U.S. dollars
2015¥

5,170,320
163,196
71,327¥

4,414,505
126,552
47,588$42,989,276
1,356,917
593,058¥

5,404,843¥

4,588,646$

44,939,251

Note: Liabilities for guarantees on corporate bonds included in Securities, which were issued by private placement (Article
2, Paragraph 3 of the Financial Instruments and Exchange Law (the Securities and Exchange Law as of March 31,2007)) amounted to ¥1,036,575 million ($8,618,733 thousand) and ¥986,577 million as of March 31, 2015 and 2014,
respectively.
(2) The principal amounts promised to be indemnified for money trusts which are entrusted to domestic consolidated trust
banking subsidiaries, were ¥701,373 million ($5,831,661 thousand) and ¥749,550 million as of March 31, 2015 and2014, respectively.

159

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

27. Deferred Tax Assets and Liabilities(1) Deferred Tax Assets and Liabilities consisted of the following:
Millions of yen
2015

As of March 31,

Deferred Tax Assets:
Tax Losses Carried Forward
Devaluation of Securities
Reserves for Possible Losses on
Loans
Securities Contributed to
Employee Retirement Benefit
Trust
Other

¥

Deferred Tax Assets Subtotal:
Valuation Allowance
Total
Deferred Tax Liabilities:
Net Defined Benefit Asset
Net Unrealized Gains on Other
Securities
Other
Total
Net Deferred Tax Assets

110,959
148,106¥2014

139,463
217,797

Thousands of U.S. dollars
2015$

922,587
1,231,447

197,846

229,671

1,645,020

197,383
185,948

212,273
201,350

1,641,167
1,546,092

840,243(294,907)

1,000,557(399,648)

6,986,313(2,452,042)¥

545,336¥

600,908$

4,534,271¥(239,199)¥(146,897)$(1,988,854)(690,581)(102,939)(307,491)(92,394)(5,741,925)(855,900)¥(1,032,719)¥(546,783)$(8,586,679)¥(487,383)¥

54,125$(4,052,408)

Notes: 1. In addition to the balances shown in the above table, there is an equivalent amount of deferred tax assets
corresponding to tax losses carried forward of ¥281,403 million ($2,339,764 thousand) and ¥309,462 million as ofMarch 31, 2015 and 2014, respectively.
Since the tax losses carried forward resulted from transactions among consolidated subsidiaries, the deferred tax
assets in the above table and in the consolidated balance sheet exclude the equivalent amount of deferred tax
assets.
2. MHFG and domestic subsidiaries are subject to a number of different income taxes.
(2) For the fiscal years ended March 31, 2015 and 2014, the reconciliation of the statutory tax rate of MHFG to theeffective income tax rate was as follows:
For the Fiscal Year ended March 31,

2015

2014

Statutory Tax Rate
Adjustments
Change in Valuation Allowance
Permanent Differences (e.g., Cash Dividends
Received)
Tax Rate Differences between theConsolidated Subsidiaries
Adjustment to reduce the amount of deferred
tax assets at the end of period due tochanges in tax rates
Other

35.64%

38.01%(3.83)(11.72)(1.89)(2.46)(5.07)(5.73)

2.70
3.24

0.89
2.83

Effective Income Tax Rate

30.79%

21.82%

160

(3) The revision of the amount of deferred tax assets and deferred tax liabilities due to the change in tax rate of thecorporate tax, etc:
“Act on Partial Amendment to the Income Tax Act, etc.” (Act No. 9, 2015) and “Act on Partial Amendment to the Local
Tax Act, etc.” (Act No. 2, 2015) were promulgated on March 31, 2015, and accordingly, the corporate tax rate andother rates have been lowered from the fiscal year beginning on or after April 1, 2015.
Due to this change, the effective statutory tax rate used for the calculation of deferred tax assets and deferred tax
liabilities has been revised from the previous rate of 35.64%. The rate of 33.06% has been applied to the temporary
differences, expected to be either deductible, taxable or expired in the fiscal year beginning on April 1, 2015, while therate of 32.26% has been applied to the temporary differences, expected to be either deductible, taxable, or expired inor after the fiscal year beginning on April 1, 2016.
In addition, due to the revision of the carry-forward system of the net operating losses, the amount of net operating
losses that can be deducted has been limited to the equivalent of 65% of taxable income before such deductions fromthe fiscal year beginning on April 1, 2015 through the fiscal year beginning on April 1, 2016, while the amount of net
operating losses that can be deducted has been limited to the equivalent of 50% of taxable income before suchdeductions in or after the fiscal year beginning on April 1, 2017.
As a result of the changes in tax rates and the carry-forward system of the losses, Deferred Tax Liabilities decreasedby ¥51,997 million ($432,342 thousand), Net Unrealized Gains on Other Securities increased by ¥70,180 million($583,522 thousand), Deferred Gains or Losses on Hedges increased by ¥872 million ($7,256 thousand),Remeasurements of Defined Benefit Plans increased by ¥7,685 million ($63,902 thousand), and Deferred Income
Taxes increased by ¥26,739 million ($222,326 thousand). Deferred Tax Liabilities for Revaluation Reserve for Landdecreased by ¥7,531 million ($62,622 thousand) and Revaluation Reserve for Land increased by the same amount.

28. Revaluation of Land
In accordance with the Land Revaluation Law (Proclamation No.34 dated March 31, 1998), land used for business
operations of domestic consolidated banking subsidiaries was revalued. The applicable income taxes on the entire excess
of revaluation are included in Deferred Tax Liabilities for Revaluation Reserve for Land under Liabilities, and the remainder,
net of applicable income taxes, is stated as Revaluation Reserve for Land included in Net Assets.
Revaluation date: March 31, 1998
Revaluation method as stated in Article 3, Paragraph 3 of the above law: Land used for business operations wasrevalued by calculating the value on the basis of the valuation by road rating stipulated in Article 2, Paragraph 4 of
the Enforcement Ordinance relating to the Land Revaluation Law (Government Ordinance No.119 promulgated on
March 31, 1998) with reasonable adjustments to compensate for sites with long depth and other factors, and also on
the basis of the appraisal valuation stipulated in Paragraph 5.
The difference at the consolidated balance sheet date between the total fair value of land for business operation
purposes, which has been revalued in accordance with Article 10 of the above-mentioned law, and the total bookvalue of the land after such revaluation was ¥147,005 million ($1,222,293 thousand) and ¥156,731 million as ofMarch 31, 2015 and 2014, respectively.

161

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

29. Common Stock and Preferred Stock
Common Stock and Preferred Stock at March 31, 2015 and 2014 were as follows:
Number of shares
As of March 31, 2015
Class of stock

Common Stock
Eleventh Series Class XI
Preferred Stock

Authorized

Issued andoutstanding

48,000,000,000 24,621,897,967
914,752,000

914,752,000

Per share (Yen)Interimcash
dividend

Year-end
cash Liquidation
dividend
value

¥

¥

3.5
10

4 ¥
10

Convertible
or notWith
Redemption
or not

—

No

No

1,000

Yes

No

Notes: 1.Treasury Stock and stocks held by subsidiaries and affiliates are not excluded. The numbers are as follows:
Common Stock
8,695 thousand shares
Eleventh Series Class XI Preferred Stock
701,631 thousand shares
2. Each total number of shares which are authorized to be issued is as follows:First Series Class XIV Preferred Stock
900,000 thousand shares
Second Series Class XIV Preferred Stock
900,000 thousand shares
Third Series Class XIV Preferred Stock
900,000 thousand shares
Fourth Series Class XIV Preferred Stock
900,000 thousand sharesFirst Series Class XV Preferred Stock
900,000 thousand shares
Second Series Class XV Preferred Stock
900,000 thousand shares
Third Series Class XV Preferred Stock
900,000 thousand shares
Fourth Series Class XV Preferred Stock
900,000 thousand sharesFirst Series Class XVI Preferred Stock
1,500,000 thousand shares
Second Series Class XVI Preferred Stock
1,500,000 thousand shares
Third Series Class XVI Preferred Stock
1,500,000 thousand shares
Fourth Series Class XVI Preferred Stock
1,500,000 thousand shares
The total number of shares of the First to Fourth Series Class XIV Preferred Stock, which are authorized to beissued, shall not exceed 900,000,000 in total.
The total number of shares of the First to Fourth Series Class XV Preferred Stock, which are authorized to beissued, shall not exceed 900,000,000 in total.
The total number of shares of the First to Fourth Series Class XVI Preferred Stock, which are authorized to beissued, shall not exceed 1,500,000,000 in total.

162

Number of shares
As of March 31, 2014
Class of stock

Common Stock
Eleventh Series Class XI
Preferred Stock

Authorized

Issued andoutstanding

48,000,000,000 24,263,885,187
914,752,000

914,752,000

Per share (Yen)Interimcash
dividend¥

Year-end
cash Liquidation
dividend
value

3 ¥

3.5 ¥

10

10

Convertible
or notWith
Redemption
or not

—

No

No

1,000

Yes

No

Notes: 1.Treasury Stock and stocks held by subsidiaries and affiliates are not excluded. The numbers are as follows:
Common Stock
10,637 thousand shares
Eleventh Series Class XI Preferred Stock602,100 thousand shares
2. All of the shares of the Thirteenth Series Class XIII Preferred Stock were acquired and cancelled on July 11,
2013. Accordingly, the common stock shareholders approved an amendment to the Articles of Incorporationaccompanied by a decrease in the total number of authorized shares and the total number of authorized sharesof the Class XIII preferred stock at the Ordinary General Meeting of Shareholders of MHFG held on June 24,
2014.
As a result of the amendment, each total number of authorized shares, effective on the same day, shall be as
follows:
Common Stock
48,000,000 thousand shares
Eleventh Series Class XI Preferred Stock914,752 thousand sharesFirst Series Class XIV Preferred Stock
900,000 thousand shares
Second Series Class XIV Preferred Stock
900,000 thousand shares
Third Series Class XIV Preferred Stock
900,000 thousand shares
Fourth Series Class XIV Preferred Stock
900,000 thousand sharesFirst Series Class XV Preferred Stock
900,000 thousand shares
Second Series Class XV Preferred Stock
900,000 thousand shares
Third Series Class XV Preferred Stock
900,000 thousand shares
Fourth Series Class XV Preferred Stock
900,000 thousand sharesFirst Series Class XVI Preferred Stock
1,500,000 thousand shares
Second Series Class XVI Preferred Stock
1,500,000 thousand shares
Third Series Class XVI Preferred Stock
1,500,000 thousand shares
Fourth Series Class XVI Preferred Stock
1,500,000 thousand shares
The total number of shares of the First to Fourth Series Class XIV Preferred Stock, which are authorized to beissued, shall not exceed 900,000,000 in total.
The total number of shares of the First to Fourth Series Class XV Preferred Stock, which are authorized to beissued, shall not exceed 900,000,000 in total.
The total number of shares of the First to Fourth Series Class XVI Preferred Stock, which are authorized to beissued, shall not exceed 1,500,000,000 in total.

163

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

30. Stock Options(1) Total amount of stock options expensed were as follows:
Millions of yen
2015

For the Fiscal Years ended March 31,

General and administrative expenses
Total

2014

Thousands of U.S. dollars
2015¥ 1,795¥ 1,527$14,929¥ 1,795¥ 1,527$14,929(2) Outline of stock options and changes
For the fiscal year ended March 31, 2015(i) Outline of stock options
As of March 31, 2015

Number of grantees

Number of stock
options*1
Grant dateCondition for vesting

Required service
periodExercise period

164

First Series of Stock
Acquisition Rights of MHFG

Second Series of Stock
Acquisition Rights of MHFG

Third Series of Stock
Acquisition Rights of MHFG

Directors
Executive
Officers
Directors ofsubsidiaries of
MHFG
Executive
Officers ofsubsidiaries of
MHFG

4 Directors
Executive
4
Officers
Directors of
14 subsidiaries of
MHFG
Executive
Officers of71
subsidiaries of
MHFG

4 Directors
Executive
4
Officers
Directors of
14 subsidiaries of
MHFG
Executive
Officers of71
subsidiaries of
MHFG

Common stock

5,409,000 Common stock

5,835,000 Common stock

4
4

12

71
6,808,000

February 16, 2009
September 25, 2009
August 26, 2010
The grantee may exercise the Stock Acquisition Rights which have been allotted based on his
or her capacity as a Director or an Executive Officer of MHFG, MHBK or MHCB immediately
following the date on which such grantee loses the status as a Director or an Executive Officer
of MHFG, MHBK or MHCB.
July 1, 2008
April 1, 2009
April 1, 2010
to March 31, 2009
to March 31, 2010
to March 31, 2011
February 17, 2009
September 28, 2009
August 27, 2010
to February 16, 2029
to September 25, 2029
to August 26, 2030

As of March 31, 2015

Number of grantees

Number of stock
options*1
Grant dateCondition for vesting

Required service
periodExercise period

As of March 31, 2015

Number of grantees

Number of stock
options*1
Grant dateCondition for vesting

Required service
periodExercise period

Fourth Series of Stock
Acquisition Rights of MHFG

Fifth Series of Stock
Acquisition Rights of MHFG

Sixth Series of Stock
Acquisition Rights of MHFG

Directors
Executive
Officers
Directors ofsubsidiaries of
MHFG
Executive
Officers ofsubsidiaries of
MHFG

6 Directors
Executive
6
Officers
Directors of
26 subsidiaries of
MHFG
Executive
Officers of
130
subsidiaries of
MHFG

6 Directors
Executive
11
Officers
Directors of
23 subsidiaries of
MHFG
Executive
Officers of150
subsidiaries of
MHFG

Common stock

12,452,000 Common stock

11,776,000 Common stock

6

36
22

134
7,932,000

December 8, 2011
August 31, 2012
February 17, 2014
The grantee may exercise the Stock Acquisition Rights which The grantee may exercise thehave been allotted based on his or her capacity as a Director Stock Acquisition Rights which
or an Executive Officer of MHFG, MHBK, MHCB, MHTB or
have been allotted based on
MHSC immediately following the date on which such grantee his or her capacity as aloses the status as a Director or an Executive Officer of MHFG, Director or an Executive Officer
MHBK, MHCB, MHTB or MHSC.
of MHFG, MHBK, MHTB or
MHSC immediately following
the date on which such grantee
loses the status as a Director
or an Executive Officer of
MHFG, MHBK, MHTB or
MHSC.
April 1, 2011
April 1, 2012
April 1, 2013
to March 31, 2012
to March 31, 2013
to March 31, 2014
December 9, 2011
September 3, 2012
February 18, 2014
to December 8, 2031
to August 31, 2032
to February 17, 2034
Seventh Series of Stock
Acquisition Rights of MHFG

2

Directors
Executive Officers as definedin the Companies Act
Executive Officers as definedin our internal regulations
Directors of subsidiaries of
MHFG
Executive Officers ofsubsidiaries of MHFG
Common stock

12
37
32
113
9,602,000

December 1, 2014
The grantee may exercise the Stock Acquisition
Rights which have been allotted based on his or
her capacity as a Director, an Executive Officer as
defined in Companies Act or an Executive Officer
as defined in our internal regulations of MHFG,MHBK, MHTB or MHSC immediately following thedate on which such grantee loses the status as a
Director, an Executive Officer as defined inCompanies Act or an Executive Officer as definedin our internal regulations of MHFG, MHBK,MHTB or MHSC.
April 1, 2014 to March 31, 2015
December 2, 2014 to December 1, 2034

*1: Shown in number of shares

165

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(ii) Size of stock options and changes(a) Number of stock options (in shares)
For the Fiscal Year ended
March 31, 2015

Non-vested
As of March 31, 2014
GrantedForfeited
VestedOutstanding
VestedAs of March 31, 2014
VestedExercised
Forfeited
Outstanding

For the Fiscal Year ended
March 31, 2015

Non-vested
As of March 31, 2014
GrantedForfeited
VestedOutstanding
VestedAs of March 31, 2014
VestedExercised
Forfeited
Outstanding

First Series ofStock Acquisition
Rights of MHFG

Second Series ofStock Acquisition
Rights of MHFG

Third Series ofStock Acquisition
Rights of MHFG

Fourth Series ofStock Acquisition
Rights of MHFG

Fifth Series ofStock Acquisition
Rights of MHFG

345,000－－
181,000
164,000

740,000－－
292,000
448,000

1,230,000－－
425,000
805,000

4,391,000－－
1,549,000
2,842,000

7,275,000－－
2,435,000
4,840,000

82,000
181,000
263,000－－

179,000
292,000
471,000－－

227,000
425,000
652,000－－

82,0001,549,000
1,631,000－－

60,0002,435,000
2,495,000－－

Sixth Series ofStock Acquisition
Rights of MHFG

Seventh Series ofStock Acquisition
Rights of MHFG

7,932,000－－
2,675,000
5,257,000－
9,602,000－－
9,602,000－
2,675,000
2,675,000
－
－

－
－
－
－
－

Third Series ofStock Acquisition
Rights of MHFG

Fourth Series ofStock Acquisition
Rights of MHFG

Fifth Series ofStock Acquisition
Rights of MHFG

Note: The above table is shown in number of shares.
(b) Price information

As of March 31, 2015

Exercise price
Average stock priceupon exercise
Fair value at grant date

As of March 31, 2015

Exercise price
Average stock priceupon exercise
Fair value at grant date

166

First Series ofStock Acquisition
Rights of MHFG

¥ 1 per share

Second Series ofStock Acquisition
Rights of MHFG

¥ 1 per share¥ 1 per share¥ 1 per share¥ 1 per share¥

204.31¥204.38¥204.34¥204.08¥203.81¥190.91
per share¥

168.69per share¥

119.52
per share¥

91.84
per share¥

113.25per share

Sixth Series ofStock Acquisition
Rights of MHFG

¥ 1 per share¥

203.94¥

192.61
per share

Seventh Series ofStock Acquisition
Rights of MHFG

¥ 1 per share－¥

186.99per share

(iii) Calculation for fair value of stock options
The fair value of Seventh Series of Stock Acquisition Rights of MHFG granted in the fiscal year ended March 31, 2015
was calculated as follows:●

Calculation method: The Black-Scholes Model●

Assumptions used in calculation
As of March 31, 2015

Seventh Series of Stock Acquisition Rights of MHFG

Volatility of stock price*1
Estimated remaining outstanding period*2
Expected dividend*3

25.905%
2.46years¥ 7 per share

Risk-free interest rate*40.011%*1: Historical volatility calculated from MHFG stock prices over the 128 weeks ending on the business day (November 28, 2014) prior to the
grant date, an interval equivalent to the estimated remaining outstanding period of 2.46 years.
*2: The average period of service of directors at MHFG.
*3: The expected dividend on common stock for the fiscal year ended March 31, 2015.
*4: Japanese government bond yield applicable to the estimated remaining outstanding period of the stock options.

(iv) Estimated number of stock options to be vested
Only the number of stock options actually forfeited is reflected because the number of stock options that will be
forfeited in the future cannot be readily estimated.

For the fiscal year ended March 31, 2014(i) Outline of stock options
As of March 31, 2014

Number of grantees

Number of stock
options*1
Grant dateCondition for vesting

Required service
periodExercise period

First Series of Stock
Acquisition Rights of MHFG

Second Series of Stock
Acquisition Rights of MHFG

Third Series of Stock
Acquisition Rights of MHFG

Directors
Executive
Officers
Directors ofsubsidiaries of
MHFG
Executive
Officers ofsubsidiaries of
MHFG

4 Directors
Executive
4
Officers
Directors of
14 subsidiaries of
MHFG
Executive
Officers of71
subsidiaries of
MHFG

4 Directors
Executive
4
Officers
Directors of
14 subsidiaries of
MHFG
Executive
Officers of71
subsidiaries of
MHFG

Common stock

5,409,000 Common stock

5,835,000 Common stock

4
4

12

71
6,808,000

February 16, 2009
September 25, 2009
August 26, 2010
The grantee may exercise the Stock Acquisition Rights which have been allotted based on his
or her capacity as a Director or an Executive Officer of MHFG, MHBK or MHCB immediately
following the date on which such grantee loses the status as a Director or an Executive Officer
of MHFG, MHBK or MHCB.
July 1, 2008
April 1, 2009
April 1, 2010
to March 31, 2009
to March 31, 2010
to March 31, 2011
February 17, 2009
September 28, 2009
August 27, 2010
to February 16, 2029
to September 25, 2029
to August 26, 2030

167

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

As of March 31, 2014

Number of grantees

Number of stock
options*1
Grant dateCondition for vesting

Required service
periodExercise period*1: Shown in number of shares

168

Fourth Series of Stock
Acquisition Rights of MHFG

Fifth Series of Stock
Acquisition Rights of MHFG

Sixth Series of Stock
Acquisition Rights of MHFG

Directors
Executive
Officers
Directors ofsubsidiaries of
MHFG
Executive
Officers ofsubsidiaries of
MHFG

6 Directors
Executive
6
Officers
Directors of
26 subsidiaries of
MHFG
Executive
Officers of
130
subsidiaries of
MHFG

6 Directors
Executive
11
Officers
Directors of
23 subsidiaries of
MHFG
Executive
Officers of150
subsidiaries of
MHFG

Common stock

12,452,000 Common stock

11,776,000 Common stock

6

36
22

134
7,932,000

December 8, 2011
August 31, 2012
February 17, 2014
The grantee may exercise the Stock Acquisition Rights which The grantee may exercise thehave been allotted based on his or her capacity as a Director Stock Acquisition Rights which
or an Executive Officer of MHFG, MHBK, MHCB, MHTB or
have been allotted based on
MHSC immediately following the date on which such grantee his or her capacity as aloses the status as a Director or an Executive Officer of MHFG, Director or an Executive Officer
MHBK, MHCB, MHTB or MHSC.
of MHFG, MHBK, MHTB or
MHSC immediately following
the date on which such grantee
loses the status as a Director
or an Executive Officer of
MHFG, MHBK, MHTB or
MHSC.
April 1, 2011
April 1, 2012
April 1, 2013
to March 31, 2012
to March 31, 2013
to March 31, 2014
December 9, 2011
September 3, 2012
February 18, 2014
to December 8, 2031
to August 31, 2032
to February 17, 2034

(ii) Size of stock options and changes(a) Number of stock options (in shares)
For the Fiscal Year
ended
March 31, 2014

Non-vested
As of March 31,
2013
GrantedForfeited
VestedOutstanding
VestedAs of March 31,
2013
VestedExercised
Forfeited
Outstanding

First Series of Second Series of Third Series of Fourth Series of
Stock
Stock
Stock
Stock
Acquisition
Acquisition
Acquisition
Acquisition
Rights of MHFG Rights of MHFG Rights of MHFG Rights of MHFG

Fifth Series ofSixth Series of
Stock
Stock
Acquisition
Acquisition
Rights of MHFG Rights of MHFG

648,000－－
303,000
345,000

1,374,000－－
634,000
740,000

2,452,000－－
1,222,000
1,230,000

7,452,000－－
3,061,000
4,391,000

11,208,000－－
3,933,000
7,275,000－
7,932,000－－
7,932,000

40,000303,000
261,000－
82,00064,000634,000
519,000－
179,000

81,0001,222,000
1,076,000－
227,000

216,000
3,061,000
3,195,000－
82,000

328,000
3,933,000
4,201,000－
60,000－－－－－First Series of Second Series of Third Series of Fourth Series of
Stock
Stock
Stock
Stock
Acquisition
Acquisition
Acquisition
Acquisition
Rights of MHFG Rights of MHFG Rights of MHFG Rights of MHFG

¥ 1 per share¥ 1 per share¥ 1 per share¥ 1 per share

Fifth Series ofStock
Acquisition
Rights of MHFG

Sixth Series ofStock
Acquisition
Rights of MHFG¥

214.08¥213.78¥213.63¥212.06¥212.27¥－¥190.91
per share¥

168.69per share¥

119.52
per share¥

91.84
per share¥

113.25per share¥

192.61
per share

Note: The above table is shown in number of shares.
(b) Price information

As of March 31, 2014

Exercise price
Average stock priceupon exercise
Fair value at grantdate¥ 1 per share¥ 1 per share

169

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(iii) Calculation for fair value of stock options
The fair value of Sixth Series of Stock Acquisition Rights of MHFG granted in the fiscal year ended March 31, 2014
was calculated as follows:●

Calculation method: The Black-Scholes Model●

Assumptions used in calculation
As of March 31, 2014

Volatility of stock price*1
Estimated remaining outstanding period*2
Expected dividend*3
Risk-free interest rate*4

Sixth Series of Stock Acquisition Rights of MHFG

28.156%
2.46years¥ 6.5 per share
0.081%*1: Historical volatility calculated from MHFG stock prices over the 128 weeks ending on the business day (February 14, 2014) prior to the
grant date, an interval equivalent to the estimated remaining outstanding period of 2.46 years.
*2: The average period of service of directors at MHFG.
*3: The expected dividend on common stock for the fiscal year ended March 31, 2014.
*4: Japanese government bond yield applicable to the estimated remaining outstanding period of the stock options.

(iv) Estimated number of stock options to be vested
Only the number of stock options actually forfeited is reflected because the number of stock options that will be
forfeited in the future cannot be readily estimate

170

31. Interest Income and Interest Expenses
Millions of yen
2015

For the Fiscal Years ended March 31,

Interest Income:Loans and Bills Discounted
Securities
Call Loans and Bills Purchased
Due from Banks
Receivables under Resale
Agreements
Guarantee Deposits Paid under
Securities Borrowing
Transactions
Other Interest Income
Total
Interest Expenses:
Deposits
Call Money and Bills Sold
Payables under Repurchase
Agreements
Guarantee Deposits Received
under Securities Lending
Transactions
Commercial Paper
Borrowed Money
Other Interest Expenses¥

931,883
351,801
7,611
50,093¥

2014

920,295
324,340
6,013
35,771Thousands of U.S. dollars
2015$

7,748,263
2,925,093
63,287
416,51327,99529,602

232,769

7,096
92,495

7,664
93,88059,001
769,065¥ 1,468,976¥ 1,417,569$ 12,213,991

¥

¥

$

153,6547,609

133,876
7,731

1,277,583
63,27330,537

27,947

253,904

7,549
1,682
19,287
119,222

9,860
1,826
26,527
101,497

62,771
13,989160,371991,286

Total¥

339,543

Net¥ 1,129,433¥

309,266$

2,823,177¥ 1,108,303$

9,390,814

171

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

32. Trading Income and Trading Expenses
Millions of yen
2015

2014

Thousands of U.S. dollars
2015¥ 149,251¥ 137,351$ 1,240,971

113,71151,668945,470¥ 262,963¥ 189,020$ 2,186,441

For the Fiscal Years ended March 31,

Trading Income:Net Gains on Trading Securities
Net Gains on Derivatives for
Trading Transactions
Total
Trading Expenses:
Net Losses on Trading Securities

—

Total

¥

—

Net

¥ 262,963

1,598
¥

—

1,598

$

—

¥ 187,421$ 2,186,441

2014

Thousands of U.S. dollars
2015

33. Other Operating Income
Millions of yen
2015

For the Fiscal Years ended March 31,

Gains on Foreign Exchange
Transactions
Gains on Sales of Bonds
Other
Total

¥

99,447
175,364
90,452¥ 365,264¥

74,672
118,865
61,883$826,872
1,458,093
752,076¥ 255,422$ 3,037,041

2014

Thousands of U.S. dollars
2015

34. Other Operating Expenses
Millions of yen
2015

For the Fiscal Years ended March 31,

Losses on Sales of Bonds
Expenses on Derivatives other thanfor Trading or Hedging
Losses on Devaluation of Bonds
Other
Total

¥

97,058¥72,070$807,006

10,062
1,438
47,365

6,466
9,717
40,392

83,663
11,961
393,823¥ 155,924¥ 128,647$ 1,296,453

2014

Thousands of U.S. dollars
2015

35. Other Income
Millions of yen
2015

For the Fiscal Years ended March 31,

Gains on Sales of Stock
Recovery on Written-off Loans
Reversal of Reserves for Possible
Losses on Loans
Gains on Disposition of Fixed
Assets
Other
Total

172

¥

152,029
16,862¥87,47725,160$1,264,069
140,20973,301

103,690

609,473615
58,843

428
127,5175,115
489,265¥ 301,652¥

344,275$

2,508,131

36. Other Expenses
Millions of yen
2015

For the Fiscal Years ended March 31,

Write-offs of Loans
Losses on Disposition of Fixed
Assets
Losses on Impairment of Fixed
Assets
Other
Total

¥

¥

84,5042014¥

22,431Thousands of U.S. dollars
2015$

702,624

9,156

6,929

76,136

11,358102,126

6,506
100,094

94,446
849,145

207,147¥

135,962$

1,722,351

37. Comprehensive Income
Reclassification adjustments and the related tax effects concerning Other Comprehensive Income
For the Fiscal Years ended March 31,

Net Unrealized Gains on Other Securities:
The amount arising during the period
Reclassification adjustments
Before adjustments to tax effects
The amount of tax effects
Net Unrealized Gains on Other Securities
Deferred Gains or Losses on Hedges:
The amount arising during the period
Reclassification adjustments
Adjustment to acquisition cost of assets
Before adjustments to tax effects
The amount of tax effects
Deferred Gains or Losses on Hedges
Revaluation Reserve for Land:
The amount arising during the period
Reclassification adjustments
Before adjustments to tax effects
The amount of tax effects
Revaluation Reserve for Land
Foreign Currency Translation Adjustments:
The amount arising during the period
Reclassification Adjustments
Before adjustments to tax effects
The amount of tax effects
Foreign Currency Translation Adjustments
Remeasurements of Defined Benefit Plans:
The amount arising during the period
Reclassification Adjustments
Before adjustments to tax effects
The amount of tax effects
Remeasurements of Defined Benefit Plans
Share of Other Comprehensive Income of Associates
Accounted for Using Equity Method:
The amount arising during the period
The total amount of Other Comprehensive
IncomeMillions of yen
2015¥ 1,630,152(241,126)
1,389,026(384,178)
1,004,848¥

2014

314,090(130,934)
183,156(48,132)
135,024

Thousands of U.S. dollars
2015$

13,554,108(2,004,875)
11,549,233(3,194,298)
8,354,935

80,563(30,961)—
49,602(16,349)
33,252(97,898)(36,274)(8,217)(142,390)
50,771(91,618)

669,858(257,436)—
412,422(135,941)
276,481

—
—
—
7,531
7,531

—
—
—
3
3

—
—
—
62,62162,621

13,1082,035
15,144—
15,144

15,979—15,979—15,979108,995
16,926125,921—125,921249,665
22,548272,213(89,104)
183,108—————2,075,872
187,480
2,263,352(740,872)
1,522,480

11,5483,142

96,020¥ 1,255,433¥

62,531$

10,438,458

173

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

38. Changes in Net Assets
For the fiscal year ended March 31, 2015(i) Types and number of issued shares and of treasury stock are as follows:
Thousands of Shares

Issued shares
Common stock
Eleventh Series Class XI Preferred
Stock
Total
Treasury stock
Common stock
Eleventh Series Class XI Preferred
Stock
Total

As of
April 1, 2014

Increase during
the fiscal year

Decrease during
the fiscal year

As of
March 31, 2015

Remarks

24,263,885

358,012—24,621,897*1914,752——

914,752

25,178,637

358,012—25,536,649

13,817

1,235

3,404

11,649*2

602,100

99,530—701,631*3

615,918

100,766

3,404

713,280*1 Increases are due to request for acquisition (conversion) of preferred stock (351,822 thousand shares) and exercise of stock acquisition rights (stock
option) (6,190 thousand shares).
*2 Increases are due to repurchase of shares constituting less than one unit and other factors. Decreases are due to exercise of stock acquisition rights(stock option) (1,997 thousand shares) and repurchase of shares constituting less than one unit and other factors (1,407 thousand shares).
*3 Increases are due to request for acquisition (conversion) of preferred stock.

(ii) Stock acquisition rights and treasury stock acquisition rights are as follows:

Category

MHFG

Breakdown ofstockacquisitionrightsStockacquisitionrights(Treasurystock
acquisitionrights)Stockacquisitionrights as
stock option
Consolidated
subsidiaries (Treasury
stock acquisition rights)
Total

174

Class ofshares to
be issuedortransferred
upon
exercise ofstock
acquisitionrights－Number of shares to be issued or transferred
upon exercise of stock acquisition rights(Shares)

As ofApril 1,
2014

Increaseduringthe fiscal
year

Decreaseduringthe fiscal
year

As of
March
31, 2015

－
(－)

－
(－)

－
(－)

－
(－)

Balance as ofMarch 31,
2015
(Millions of
yen)

¥

－
(－)

Balance asof March
31, 2015(Thousandsof
U.S.dollars)

$

－
(－)

－

3,820

31,764

－

－
(－)

－
(－)

－

¥ 3,820(－)$ 31,764(－)

Remarks

(iii) Cash dividends distributed by MHFG are as follows (non-consolidated basis):
Cash dividends paid during the fiscal year ended March 31, 2015

Resolution

Type

Cash
Dividends(Millions ofyen)June 24,2014

Common Stock¥(

Ordinary
GeneralMeeting of
Shareholders)

Eleventh Series Class XI
Preferred Stock

November 14,
Common Stock2014(

The Board of
Directors)¥

Eleventh Series Class XI
Preferred Stock

Total

84,886

Cash
Dividends(Thousand of
U.S. dollars)$ 705,798

Cash
Cash
Dividends
Dividends
per Shareper Share(Yen) (U.S. dollars)¥ 3.5$ 0.03

RecordDate

March 31,
2014

3,126

25,99610

0.08

March 31,
2014

85,344$ 709,611¥ 3.5$ 0.03September 30,
2014

2,778

23,10610¥ 176,136$ 1,464,511/

Effective
Date

September 30,
0.08
2014

June 24,2014

December 5,
2014/Cash dividends with record dates falling in the fiscal year ended March 31, 2015 and effective dates coming after the endof the fiscal year

Resolution

May 15,2015(

The Board of
Directors

Total

)

Type

Cash
Dividends(Millions of
yen)

Cash
Dividends(Thousand of
U.S. dollars)

Cash
Cash
Resource Dividends
Dividends
of per Shareper Share
Dividends(Yen) (U.S. dollars)Common Stock¥$ 818,598

Retained
Earnings¥4

Retained
Earnings

10

Eleventh Series Class XI
Preferred Stock¥98,452

2,131

17,720100,584$ 836,318/

Record Effective
Date
Date

$ 0.03 March 31,
2015

June 4,2015
March 31,
0.08
2015
/

175

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

For the fiscal year ended March 31, 2014(i) Types and number of issued shares and of treasury stock are as follows:
Thousands of Shares

Issued shares
Common stock
Eleventh Series Class XI Preferred
StockThirteenth Series Class XIII Preferred
Stock
Total
Treasury stock
Common stock
Eleventh Series Class XI Preferred
StockThirteenth Series Class XIII Preferred
Stock
Total

As of
April 1, 2013

Increase during
the fiscal year

Decrease during
the fiscal year

As of
March 31, 2014

Remarks

24,164,864

99,020—24,263,885*1

914,752——

914,752

36,690—36,690—25,116,306

99,02036,69025,178,637

22,128

1,472

9,783

13,817*3

574,087

28,012—602,100*4—

36,69036,690—*5596,216

66,17546,473615,918*2*1 Increases are due to request for acquisition (conversion) of preferred stock.
*2 Decreases are due to cancellation of treasury stock (preferred stock).
*3 Increases are due to repurchase of shares constituting less than one unit and other factors. Decreases are due to exercise of stock acquisition rights(stock option) (9,252 thousand shares) and repurchase of shares constituting less than one unit and other factors (531 thousand shares).
*4 Increases are due to request for acquisition (conversion) of preferred stock.
*5 Increases and decreases are due to repurchase and cancellation of treasury stock (preferred stock).

(ii) Stock acquisition rights and treasury stock acquisition rights are as follows:

Category

MHFG

Breakdown ofstockacquisitionrightsStockacquisitionrights(Treasurystock
acquisitionrights)Stockacquisitionrights as
stock option
Consolidated
subsidiaries (Treasury
stock acquisition rights)
Total

176

Class ofshares to
be issuedortransferred
upon
exercise ofstock
acquisitionrights－Number of shares to be issued or transferred
upon exercise of stock acquisition rights(Shares)

As ofApril 1,
2013

Increaseduringthe fiscal
year

Decreaseduringthe fiscal
year

As of
March
31, 2014

－
(－)

－
(－)

－
(－)

－
(－)

Balance as ofMarch 31,
2014
(Millions of
yen)

¥

－
(－)

Balance asof March
31, 2014(Thousandsof
U.S.dollars)

$

－
(－)

－

3,179

30,897

－

－
(－)

－
(－)

－

¥ 3,179(－)$ 30,897(－)

Remarks

(iii) Cash dividends distributed by MHFG are as follows (non-consolidated basis):
Cash dividends paid during the fiscal year ended March 31, 2014

Resolution

Type

Cash
Dividends(Millions ofyen)June 25,
2013

Common Stock¥(

Eleventh Series Class XI
Preferred StockThirteenth Series ClassXIII Preferred Stock

Ordinary
GeneralMeeting of
Shareholders)

November 14,
Common Stock2013(

The Board of
Directors)¥

Eleventh Series Class XI
Preferred Stock

Total

Cash
Dividends(Thousand of
U.S. dollars)

Cash
Cash
Dividends
Dividends
per Shareper Share(Yen) (U.S. dollars)

72,435$ 703,800

¥3

3,406

33,100

10

550

5,348

15

72,562$ 705,036

¥3

3,310

32,16810¥ 152,265$ 1,479,452/$ 0.03

RecordDate

Effective
Date

March 31,2013

March 31,2013
March 31,0.15
2013
September 30,$ 0.032013

June 25,
2013

0.10

September 30,
0.10
2013

December 6,
2013/

Cash dividends with record dates falling in the fiscal year ended March 31, 2014 and effective dates coming after the endof the fiscal year

Resolution

June 24,
2014(

Ordinary
GeneralMeeting of
Shareholders

Total

)

Type

Cash
Dividends(Millions of
yen)

Cash
Dividends(Thousand of
U.S. dollars)

Cash
Cash
Resource Dividends
Dividends
of per Shareper Share
Dividends(Yen) (U.S. dollars)Common Stock¥$ 824,780

Retained
Earnings¥ 3.5

Retained
Earnings

10

0.10

/

/

Eleventh Series Class XI
Preferred Stock¥84,886

3,126

30,37888,012$ 855,158

Record Effective
Date
Date

$ 0.03 March 31,
2014

June 24,2014
March 31,
2014

177

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

39. Cash Flows
Cash and Cash Equivalents on the consolidated statement of cash flows reconciles to Cash and Due from Banks on the
consolidated balance sheet as follows:
As of March 31,

Millions of yen
2015

2014

Thousands of U.S. dollars
2015¥ 20,610,276$241,923,727

Cash and Due from Banks
Less: Due from Banks excluding
due from Central Banks¥ 29,096,166(1,255,391)(1,177,851)(10,438,106)

Cash and Cash Equivalents¥ 27,840,775¥ 19,432,425$231,485,621

178

40. Lease Transactions
Finance Leases (Lessees)
Finance lease transactions that do not transfer ownership:(1) Lease Assets:• Tangible fixed assets: mainly equipment• Intangible fixed assets: software(2) The method for computing the amount of depreciation is described in “5 Standards of Accounting Method (8) Lease
Assets.”Operating Leases
The future lease payments subsequent to the end of the fiscal year for noncancelable operating lease transactions are
summarized as follows:
Lessees:Millions of yen
2015

As of March 31,

Due in One Year or Less
Due after One Year
Total

2014

Thousands of U.S. dollars
2015¥

48,614
201,780¥

48,233
211,167$

404,210
1,677,730¥

250,394¥

259,401$ 2,081,940

2014

Thousands of U.S. dollars
2015

Lessors:
Millions of yen
2015

As of March 31,

Due in One Year or Less
Due after One Year
Total

¥

779
4,350

¥

820
4,447

$

6,484
36,172

¥

5,130

¥

5,267

$

42,656179

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

41. Financial Instruments
1. Matters Relating to the Conditions of Financial Instruments(1) Policy on Financial Instruments

Mizuho Financial Group (MHFG), which primarily engages in banking business, incurs financial liabilities such as
customer deposits and market deposits on the funding side while holding financial assets such as customer loans, stocks
and bonds on the investment side, and also engages in trading business for certain financial products. Some majorityowned consolidated subsidiaries and other subsidiaries conduct securities business and other financial business.
For above funding and investment business, MHFG appropriately manages risks of each financial instrument andcarefully watches term-gaps and other risk factors.

(2) Contents and Risk of Financial Products

The main financial assets of the Mizuho group consist of loans to customers and securities such as Japanese stocks andgovernment bonds. The Group holds these securities for the purpose of reserves for deposit payments reserves and as
investments. These financial assets are subject to various types of risk that may be incurred by the Group due to a
decline in, or total loss of, the value of assets, as a result of deterioration in a counterparty’s and an issuer’s financial
position (“credit risk”), or incurred by the Group due to fluctuations in interest rates, stock prices and foreign exchange
rates and so on (“market risk”).
The main financing source of the Mizuho group is a stable source of deposits from its customers in addition to direct
funding from the financial market. These financing sources are subject to the risk of losses (“liquidity risk”) arising fromfunding difficulties due to market disruption or a deterioration in our financial position that makes it difficult for us to raise
the necessary funds or that forces us to raise funds at significantly higher interest rates than usual.
In addition, the Mizuho group uses derivative financial products to control the interest rate risk related to the assets
and liabilities of the Group, as part of our asset and liability management (“ALM”). The Group primarily utilizes theportfolio hedge by grouping numerous financial assets and liabilities such as loans and deposits into similar interest risk
units in accordance with risk management policies. Some derivative products like interest rate swaps are used as
hedging methods for cash-flow hedges or fair value hedges. The Group applies hedge accounting to the majority ofthese products, treating them as deferred hedges. The effectiveness of the hedges is assessed periodically byregression analysis and other methods to ensure whether the derivative financial products effectively work in order tooffset the exposure to changes in fair value and variable cash flows from hedged items. It should be noted that theMizuho group uses derivative financial products for trading purposes and so on as well.
Progress in financial deregulation and internationalization has led to growth in the diversity and complexity of financial
assets and liabilities of the Mizuho group, exposing the Group to various risks, including credit risk, liquidity risk andother risks.

(3) Risk Management for Financial Products(a) Commitment to Risk Management
We recognize the conducting of operations tailored to the risks and managing such risks as a key issue relating tooverall management. In order to implement our business strategy while maintaining our financial stability, we
maintain comprehensive risk management and control measures.
We maintain basic policies for risk management established by our board of directors that are applicable to theentire Mizuho group. These policies clearly define the kinds of risks to be managed, set forth the organizational
structure and provide for the human resources training necessary for appropriate levels of risk management. The
policies also provide for audits to measure the effectiveness and suitability of the risk management structure. In linewith these basic policies, we maintain various measures to strengthen and enhance the sophistication of our risk
management system.
(b) General Concept of Risk Management
We classify our risk exposures according to the various kinds of risk, including credit risk, market risk, liquidity risk
and operational risk, and manage each type of risk according to its characteristics.
In addition to managing each type of risk individually, we have established a risk management structure to identify
and evaluate overall risk and, where necessary, to devise appropriate responses to keep risk within limits that aremanagerially acceptable in both qualitative and quantitative terms.

180

More specifically, we allocate risk capital to our principal banking subsidiaries, including their respective
subsidiaries, and other core group companies to control risk within the limits set for each company. We also control
risk within managerially acceptable limits by working to ensure that the overall risk we hold on a consolidated basis
does not exceed shareholders’ equity and other measures of financial strength. To ensure the ongoing financial
health of Mizuho Financial Group, our principal banking subsidiaries and other core group companies, we regularly
monitor the manner in which risk capital is being used in order to obtain a proper grasp of the risk profile within thisframework. Reports are also submitted to the board of directors and other committees of each company.
(c) Credit Risk Management
The board of directors of Mizuho Financial Group determines basic matters pertaining to credit risk management. In
addition, we have established the Portfolio Management Committee as one of its business policy committees. This
committee broadly discusses and coordinates basic policy in connection with credit risk management and matters inconnection with overall credit portfolio management and credit risk monitoring for the Mizuho group. Under thecontrol of the Chief Risk Officer of Mizuho Financial Group, the Risk Management Division and the Credit Risk
Management Division jointly monitor, analyze and submit suggestions concerning credit risk and formulate andexecute plans in connection with basic matters pertaining to credit risk management.
We have adopted two different but mutually complementary approaches in credit risk management. The first
approach is “credit management,” in which we manage the process for each individual transaction and individual
obligor from execution until collection, based on our assessment of the credit quality of the customer. Through thisprocess, we curb losses in the case of a credit event. The second is “credit portfolio management,” in which weutilize statistical methods to assess the potential for losses related to credit risk. Through this process, we identify
credit risk and respond appropriately.
We use statistical methods to manage the possibility of losses by measuring the expected average loss for a oneyear risk horizon (“expected loss”) and the maximum loss within a certain confidence interval (“credit VAR”). The
difference between expected loss and credit VAR is measured as the credit risk amount (“unexpected loss”). We
recognize two types of risk arising from allowing unexpected loss to become too large. One type is “credit
concentration risk,” which stems from granting excessive credit to certain individual counterparties or corporategroups. The other type is “chain-reaction default risk,” which arises from granting excessive credit to certain areas,industrial sectors and other groupings. We manage these risks appropriately in line with our specific guidelines foreach.
The board of directors of each of our principal banking subsidiaries and other core group companies determines
key matters pertaining to credit risk in line with basic policies set forth by Mizuho Financial Group. Their respective
business policy committees are responsible for discussing and coordinating overall management of their individual
credit portfolios and transaction policies towards obligors.
The Chief Risk Officer of each principal banking subsidiary and core group company is responsible for mattersrelating to planning and implementing credit risk management. The credit risk management division of each principal
banking subsidiary is responsible for planning and administering credit risk management and conducting credit risk
measuring and monitoring. Each credit division determines policies and approves/disapproves individualtransactions regarding review and management of and collection from customers in accordance with the lines ofauthority set forth by each principal banking subsidiary. In addition, each of our principal banking subsidiaries has
also established internal audit divisions that are independent of the business divisions in order to ensure appropriate
credit risk management.
(d) Market Risk Management
The board of directors of Mizuho Financial Group determines basic matters pertaining to market risk management
policies. In addition, we have established the ALM & market risk management committee as one of its business
policy committees. The committee broadly discusses and coordinates matters relating to basic asset and liability
management policies risk planning and market risk management and proposes responses to emergencies such assudden market changes.
The Chief Risk Officer of Mizuho Financial Group is responsible for matters relating to market risk management
planning and operations. The Risk Management Division of Mizuho Financial Group is responsible for monitoringmarket risk, reports and analyses, proposals, setting limits and guidelines, and formulating and implementing plans
relating to market risk management. In addition, the division assesses and manages the overall market risk of theMizuho group as a whole and keeps track of the market risk situation of our principal banking subsidiaries and othercore group companies. The division also submits reports to the President & CEO on a daily basis and to our boardof directors and the executive management committee of Mizuho Financial Group on a regular basis.

181

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

To manage market risk, we set limits that correspond to risk capital allocations. The amount of risk capital
allocated to market risk corresponds to VAR and additional costs that may arise in order to close relevant positions.
For trading and banking activities, we set limits for VAR and for losses. For banking activities, we set position limits
based on interest rate sensitivity as needed.
Our principal banking subsidiaries and certain other core group companies have formulated their basic policies inline with the basic policies determined by Mizuho Financial Group. Their boards of directors determine importantmatters relating to market risk management while their Chief Executive Officers are responsible for controllingmarket risk. Based on a common Mizuho group risk capital allocation framework, the above-mentioned companies
manage market risk by setting limits according to the risk capital allocated to market risk by Mizuho Financial Group.
Our principal banking subsidiaries and certain other core group companies have the same market risk
management structure as the Mizuho Financial Group, such as their business policy committees being responsible
for overall discussion and coordination of the market risk management, including their ALM & market risk
management committees.
In addition, they have established middle offices specializing in risk management that are independent of theirfront offices, which engage in market transactions, and their back offices, which are responsible for book entries andsettlements. This system enables them to achieve mutual checks and control over market operations.
When VAR is not adequate to control risk, the middle offices manage risk using additional risk indices such as 10
BPV (Basis Point Value), carry out stress tests and set stop loss limits as needed.
(e) Situation of Market Risk
i. Overview of Banking Activities
The following table shows the VAR figures relating to our banking activities for the fiscal years indicated:
Billions of yen
For the Fiscal Years ended March 31,

As of fiscal year end
Maximum
Minimum
Average

¥

2015

325.6
349.0
265.0
307.9

Thousands of U.S. dollars

¥

2014

281.7
300.7
186.8
253.5

$

2015

2,707,355
2,902,266
2,204,112
2,560,870[Definition of Banking business]
The following transactions are categorized as banking business, with trading business and strategically-heldequity being categorized separately.
(1) Deposits and loans as well as related funding activities, and hedge against interest rate risk.
(2) Equity (excluding strategically-held equity), bonds, investment trusts, etc. and hedges against related
market risk.
The core deposit of liquid deposits is to be specified and incorporated into the measurement of market risk.
Banking business VAR used to calculate Market Risk Equivalent is based on the following:• variance co-variance model for linear risk and Monte-Carlo simulation for non-linear risk;• VAR : the total amount of linear risk and non-linear risk;• confidence interval: one-tailed 99%;
• holding period of one month ; and• historical observation period of one year.

182

ii. Trading Business
The following table shows VAR figures of our trading activities for the fiscal years indicated :Billions of yen
For the Fiscal Years ended March 31,

As of fiscal year end
Maximum
Minimum
Average

¥

2015

6.5
7.1
3.1
4.4

Thousands of U.S. dollars

¥

2014

5.4
7.4
3.3
5.7

$

2015

54,71559,22926,24837,234[Definition of trading activities](1) Transactions held for the purpose of short-term resale.
(2) Transactions held for the purpose of making a profit from price fluctuations over a short period as well as
fixing a profit from arbitrage activities.
(3) Deals that have both aspects of (1) and (2) above.
(4) Deals held for broking business or market making business.
Trading business VAR used to calculate Market Risk Equivalent is based on the following:• variance co-variance model for linear risk and Monte-Carlo simulation for non-linear risk;• VAR: the total amount of linear risk and non-linear risk;• confidence interval: one-tailed 99%;
• holding period of one trading day; and• historical observation period of one year.
iii. Strategic Equity Holding
We make the same market risk management based on VAR and risk indices for strategic equity holding portfolio
as banking business and trading business.
The risk index of the strategic equity holding portfolio (sensitivity of the portfolio to a 1% change in TOPIX index)
is set as ¥37.4 billion ($310,963 thousand) and ¥30.0 billion for the fiscal years ended March 31, 2015 and 2014,
respectively.
iv. Risk management using VAR
VAR is a commonly used market risk management technique with statistical assumptions to measure maximum
possible loss in the market, which will be incurred to the holding portfolio in a certain period with some probability.
It should be noted that in general VAR model has the following shortcomings:• VAR estimates could differ by assumptions of holding period, confidence interval level and approaches forthe measurement.
• VAR which is calculated based on historical data does not necessarily indicate an accurate future possible
maximum loss.
• VAR might underestimate the probability of extreme market movements when the market gets inactive as
VAR assumes sales of holding portfolio and hedges in the market during the holding period for the
calculation.
• The use of a 99% confidence level does not take account of, nor makes any statement about, any losses
that might occur beyond this confidence level.
The variance co-variance model used as the measurement technique of VAR assumes that change in a market
movement follows a normal distribution. Therefore, the model might underestimate the risk under thecircumstance that the market is likely to move extremely beyond the assumption. The model might also
underestimate the risk when the normal correlation assumption between interest rate and share price collapses
under the circumstances when a rise in the interest rate and a deterioration of share price happen simultaneously.
We check the validity of the market risk measurement made by VAR approach periodically by the back-test
which compares VAR with actual profit and loss. In addition to VAR, we make a wide variety of management andcontrols such as risk indices monitoring, implementation of stress tests, loss limit monitoring in order to make strictrisk management by capturing carefully all risks, including what VAR approach is not able to cover.
(f) Liquidity Risk Management
Our liquidity risk management structure is generally the same as the market risk management structure describedabove (“Item (d) Market Risk Management”). However, the head of the Financial Control & Accounting Group of
Mizuho Financial Group is additionally responsible for matters relating to planning and running cash flow
management operations, while the Financial Planning Division is responsible for monitoring and adjusting the cash
183

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

flow management situation and for planning and implementing cash flow management. Reports on the cash flow
situation are submitted to the ALM & market risk management committee, the executive management committee
and the President & CEO.
We measure liquidity risk using indices pertaining to cash flow, such as limits on funds raised in the market. Limits
on liquidity risk are discussed and coordinated by the ALM & market risk management committee, discussed further
by the executive management committee and determined by the President & CEO. We have establishedclassifications for the cash flow conditions affecting the Group, ranging from “normal” to “anxious” and “crisis,” andhave established procedures for dealing with cases which are deemed to fall into the “anxious” or “crisis” categories.
In addition, we have constructed a system under which we will be able to respond smoothly in the event ofemergency situations that affect our funding by establishing action plans.

(4) Supplementary Explanation of Matters Relating to Fair Value of Financial Instruments and Others

Fair values of financial instruments include the values based on market prices, and the values deemed as market prices
obtained by the reasonable estimate when the financial instruments do not have market prices. Since certain
assumptions and others are adopted for calculating such values, they may differ when adopting different assumptions
and others.

184

2. Matters Relating to Fair Value of Financial Instruments and Others
The following are the consolidated balance sheet amounts, fair values and differences between them as of March 31,
2015 and 2014. Unlisted stocks and others, the fair values of which are extremely difficult to determine, are excluded
from the table below (see (Note 2)).

As of March 31, 2015

(1) Cash and Due from Banks *1(2) Call Loans and Bills Purchased *1(3) Receivables under Resale Agreements(4) Guarantee Deposits Paid under Securities Borrowing
Transactions(5) Other Debt Purchased *1(6) Trading Assets
Trading Securities*1(7) Money Held in Trust(8) Securities
Bonds Held to Maturity
Other Securities(9) Loans and Bills Discounted
Reserves for Possible Losses on Loans *1¥

Total Assets(1) Deposits(2) Negotiable Certificates of Deposit(3) Call Money and Bills Sold
(4) Payables under Repurchase Agreements(5) Guarantee Deposits Received under Securities
Lending Transactions(6) Trading Liabilities
Securities Sold, Not yet Purchased(7) Borrowed Money(8) Bonds and Notes
Total Liabilities
Derivative Transactions *2
Derivative Transactions not Qualifying for Hedge
Accounting
Derivative Transactions Qualifying for Hedge
Accounting*1
Reserves for Derivative Transactions
Total Derivative Transactions¥¥

Consolidated Balance
Sheet Amount

29,094,362
443,394
8,582,239

Millions of yen¥

Fair Value

29,094,362
443,394
8,582,239¥

Difference———

4,059,340
3,239,582

4,059,340
3,239,662—
79

5,042,005
157,225

5,042,005
157,225——

5,647,341
37,001,945
73,415,170(461,940)
72,953,230
166,220,667
97,757,545
15,694,906
5,091,198
19,612,120

5,677,806
37,001,945

30,465—¥¥74,059,603
167,357,586
97,725,179
15,694,463
5,091,198
19,612,120¥¥

1,106,373
1,136,918(32,366)(442)——

2,245,639

2,245,639—¥

3,200,813
7,195,869
6,013,731
156,811,824¥

3,200,813
7,171,622
6,151,033
156,892,070¥—(24,247)
137,301
80,245¥

313,667¥[23,904](13,797)
275,965¥

275,965¥—*1 General and specific reserves for possible losses on loans relevant to Loans and Bills Discounted and reserves for derivative transactions are excluded.
Reserves for Cash and Due from Banks, Call Loans and Bills Purchased, Other Debt Purchased, Money Held in Trust and others are directly written off
against the consolidated balance sheet amount due to immateriality.
*2 Derivative Transactions recorded in Trading Assets, Trading Liabilities, Derivatives other than for Trading Assets, Derivatives other than for Trading
Liabilities, and others are presented as a lump sum.
Net claims and debts that arose from derivative transactions are presented on a net basis, and the item that is net debts in total is presented in brackets.

185

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

As of March 31, 2014

(1) Cash and Due from Banks *1(2) Call Loans and Bills Purchased *1(3) Receivables under Resale Agreements*1(4) Guarantee Deposits Paid under Securities Borrowing
Transactions(5) Other Debt Purchased *1(6) Trading Assets
Trading Securities*1(7) Money Held in Trust(8) Securities
Bonds Held to Maturity
Other Securities(9) Loans and Bills Discounted*1
Reserves for Possible Losses on Loans¥

Total Assets(1) Deposits(2) Negotiable Certificates of Deposit(3) Call Money and Bills Sold
(4) Payables under Repurchase Agreements(5) Guarantee Deposits Received under Securities
Lending Transactions(6) Trading Liabilities
Securities Sold, Not yet Purchased(7) Borrowed Money(8) Bonds and Notes
Total Liabilities
Derivative Transactions *2
Derivative Transactions not Qualifying for Hedge
Accounting
Derivative Transactions Qualifying for Hedge
Accounting*1
Reserves for Derivative Transactions
Total Derivative Transactions¥¥

Consolidated Balance
Sheet Amount

20,609,087
467,479
8,349,032

Millions of yen¥

Fair Value

20,609,087
467,479
8,349,032¥

Difference———

5,010,740
3,262,798

5,010,740
3,261,309—(1,489)7,038,301
168,367

7,038,301
168,367——

4,040,082
39,267,868
69,301,405(554,631)
68,746,774
156,960,533
89,055,505
12,755,776
7,194,432
16,797,803

4,057,817
39,267,868

17,734—¥¥

69,863,796
158,093,800
89,016,879
12,755,204
7,194,432
16,797,803¥¥

1,117,022
1,133,267(38,626)(572)——

6,085,331

6,085,331—¥

4,309,956
7,838,357
5,245,743
149,282,908¥

4,309,956
7,846,427
5,348,781
149,354,817

¥

—
8,069
103,037
71,908¥615,267¥[330,703](11,710)
272,852¥

272,852¥—*1 General and specific reserves for possible losses on loans relevant to Loans and Bills Discounted and reserves for derivative transactions are excluded.
Reserves for Cash and Due from Banks, Call Loans and Bills Purchased, Receivables under Resale Agreements, Other Debt Purchased, Money Held inTrust and others are directly written off against the consolidated balance sheet amount due to immateriality.
*2 Derivative Transactions recorded in Trading Assets, Trading Liabilities, Derivatives other than for Trading Assets, Derivatives other than for Trading
Liabilities, and others are presented as a lump sum.
Net claims and debts that arose from derivative transactions are presented on a net basis, and the item that is net debts in total is presented in brackets.

186As of March 31, 2015$
(1) Cash and Due from Banks *1*1(2) Call Loans and Bills Purchased(3) Receivables under Resale Agreements(4) Guarantee Deposits Paid under Securities Borrowing
Transactions(5) Other Debt Purchased *1(6) Trading Assets
Trading Securities(7) Money Held in Trust *1(8) Securities
Bonds Held to Maturity
Other Securities(9) Loans and Bills Discounted
Reserves for Possible Losses on Loans *1
Total Assets(1) Deposits(2) Negotiable Certificates of Deposit(3) Call Money and Bills Sold
(4) Payables under Repurchase Agreements(5) Guarantee Deposits Received under Securities
Lending Transactions(6) Trading Liabilities
Securities Sold, Not yet Purchased(7) Borrowed Money(8) Bonds and Notes
Total Liabilities
Derivative Transactions *2
Derivative Transactions not Qualifying for Hedge
Accounting
Derivative Transactions Qualifying for Hedge
Accounting*1
Reserves for Derivative Transactions
Total Derivative Transactions

Consolidated Balance
Sheet AmountThousands of U.S. dollars
Fair Value

241,908,723
3,686,660
71,358,105

33,751,897
26,935,914

33,751,897
26,936,577—
663

41,922,387
1,307,274

41,922,387
1,307,274——

46,955,525
307,657,318
610,419,643(3,840,859)
606,578,784
1,382,062,587 $
812,817,376 $
130,497,265
42,331,405
163,067,432

47,208,836
307,657,318

253,311—615,777,865
1,391,515,642
812,548,260
130,493,587
42,331,405
163,067,432

18,671,651

18,671,651—$

26,613,564
59,830,961
50,001,929
1,303,831,583 $

26,613,564
59,629,354
51,143,542
1,304,498,795$—(201,607)
1,141,613
667,212$2,608,025$[198,758](114,718)
2,294,549 $2,294,549

$

—

$
$

$

Difference

241,908,723 $
3,686,660
71,358,105

$
$

—
—
—

9,199,081
9,453,055(269,116)(3,678)——*1 General and specific reserves for possible losses on loans relevant to Loans and Bills Discounted and reserves for derivative transactions are excluded.
Reserves for Cash and Due from Banks, Call Loans and Bills Purchased, Other Debt Purchased, Money Held in Trust and others are directly written off
against the consolidated balance sheet amount due to immateriality.
*2 Derivative Transactions recorded in Trading Assets, Trading Liabilities, Derivatives other than for Trading Assets, Derivatives other than for Trading
Liabilities, and others are presented as a lump sum.
Net claims and debts that arose from derivative transactions are presented on a net basis, and the item that is net debts in total is presented in brackets.

187

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(Note 1) Calculation method of fair value of financial instruments
Assets(1) Cash and Due from Banks
For Due from Banks which have no maturity, since fair values of these items approximate book values, we deem thebook values to be fair values. For Due from Banks which have maturity, since contractual terms of these items aremainly short (i.e., within six months) and fair values of these items approximate book values, we deem the book values
to be fair values.
(2) Call Loans and Bills Purchased, (3) Receivables under Resale Agreements and (4) Guarantee Deposits Paid under
Securities Borrowing Transactions
Since contractual terms of these items are mainly short (i.e., within six months) and fair values of these items
approximate book values, we deem the book values to be fair values.
(5) Other Debt Purchased
Fair values of Other Debt Purchased are based on the values deemed as market prices obtained by the reasonableestimate such as those obtained from brokers and financial information vendors.
(6)Trading Assets
Fair values of securities held for trading, such as bonds held for trading, are based on the market prices and others.
(7)Money Held in Trust
As to securities managed as trust assets in a directed money trust for separate investment with the management of
securities as its primary purpose, fair values of these items are calculated using the method stated in (8). For other
Money Held in Trust, since fair values of these items approximate book values, we deem the book values to be fairvalues.
The notes to Money Held in Trust based on holding purpose are stated in “42.Fair Value of Securities and Money
Held in Trust.”(8)Securities
Fair values of stocks are based on the prices on securities exchanges, and those of bonds and others are based on themarket prices, valuations obtained from brokers and information vendors and others. Fair values of investment trusts are
based on the disclosed net asset value and others. Fair values of private placement bonds are calculated by discounting
the total amount of principal and interest and others at interest rates based on the discount rate reflecting expected loss
and various risk factors by categories according to the internal ratings and terms.
Fair values of securitized products are based on valuations obtained from brokers and others, and reasonably
calculated prices based on the reasonable estimates of our management. In deriving reasonably calculated prices
based on the reasonable estimates of our management mentioned above, we used the discounted cash flow method.
The price decision variables include default rates, recovery rates, pre-payment rates, and discount rates.
Fair values of Floating-rate Japanese Government Bonds, according to our determination that current market prices
may not reflect the fair value, are based on the reasonably calculated prices as book value at the end of the current
fiscal year. In deriving the reasonably calculated prices, we used the discount cash flow method as well as othermethods. The price decision variables include the yield of 10-year Japanese Government Bonds and the volatilities ofinterest rate swap options for 10-year Japanese Government Bonds as underlying assets.
The notes to Securities based on holding purpose are stated in “42.Fair Value of Securities and Money Held inTrust.”(9)Loans and Bills Discounted
Fair values of Loans and Bills Discounted are calculated by the total amount of principal and interest and others at
interest rates based on the discount rate reflecting expected loss and various risk factors by categories according to thetypes, internal ratings and terms of the Loans and Bills Discounted. In addition, as to claims against bankrupt obligors,
substantially bankrupt obligors and intensive control obligors, since the estimated amount of bad debts is calculated
based on the present value of the expected future cash flows or the estimated amounts that we would be able to collectfrom collateral and guarantees, fair values approximate the amount of Debentures and others minus the amount ofReserves for Possible Losses on Loans in the consolidated balance sheet as of the consolidated balance sheet date
and we thus deem such amount to be fair values.
188

Of the Loans and Bills Discounted, for those without a fixed maturity due to loan characteristics such as limiting loans
to within the value of pledged assets, we deem book values to be fair values since fair values are expected toapproximate book values based on the estimated loan periods, interest rates and other conditions.
Liabilities(1)Deposits (2) Negotiable Certificates of Deposit
For demand deposits, we deem the payment amounts required on the consolidated balance sheet date (i.e., bookvalues) to be fair values. In addition, fair values of fixed deposits and negotiable certificates of deposits are calculated byclassifying them based on their terms and by discounting the future cash flows. The discount rates used in suchcalculations are the interest rates. Since fair values of those whose deposit terms are short (i.e., within six months)
approximate book values, we mainly deem the book values to be fair values.
(3)Call Money and Bills Sold, (4) Payables under Repurchase Agreements and (5) Guarantee Deposits Received under
Securities Lending Transactions
Since contractual terms of these financial instruments are mainly short (i.e., within six months) and fair values
approximate book values, we deem the book values to be fair values.
(6)Trading Liabilities
Fair values of Securities Sold, Not yet Purchased in Trading Liabilities are based on the market prices and others.
(7)Borrowed Money
Fair values of Borrowed Money are calculated mainly by discounting the total amount of the principal and interest ofsuch Borrowed Money classified by certain period at the interest rates considered to be applicable to similar loans.
(8)Bonds and Notes
Fair values of Bonds and Notes issued by MHFG and its consolidated subsidiaries are based on the market prices for
Bonds and Notes which have market prices, and calculated by discounting the total amount of principal and interest by
the interest rates considered to be applicable to similar Bonds and Notes for those which do not have market prices.
Derivative Transactions
Derivative transactions include interest rate-related transactions (futures, options, swaps and others), currency-relatedtransactions (futures, options, swaps and others), bond-related transactions (futures, futures options and others), andare based on the prices on securities exchanges, discounted value of future cash flows, option pricing models andothers.

189

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(Note 2) Consolidated balance sheet amounts of financial instruments whose fair values are deemed to be extremely
difficult to determine are indicated below, and are not included in “Assets (5) Other Debt Purchased”, “Assets (7)Money Held in Trust” and “Assets (8) Other Securities” in fair value information of financial instruments.

As of March 31,
Category(i) Unlisted Stocks *1(ii) Investments in Partnerships and others *2*3(iii) Other
*4
Total

Millions of yen
Thousands of U.S. dollars
2015
2014
2015
Consolidated Balance
Consolidated Balance
Consolidated Balance
Sheet Amount
Sheet Amount
Sheet Amount¥¥

163,219
74,158100,595
337,974¥¥

213,486
102,239
100,350
416,076$ 1,357,112
616,599
836,417$ 2,810,128*1 We do not treat Unlisted Stocks as being subject to disclosure of fair values as there are no market prices and they are deemed extremely difficult todetermine fair values.
*2 Of the Investments in Partnerships and others, we do not treat those whose assets consist of unlisted stocks and other financial instruments that are
deemed extremely difficult to determine fair values as being subject to disclosure of fair values.
*3 We do not treat Preferred Securities and others included in Other as being subject to disclosure of fair values as there are no market prices andother factors and they are deemed extremely difficult to determine fair values.
*4 During the fiscal years ended March 31, 2015 and 2014, the amounts of impairment (devaluation) were ¥3,525 million ($29,317 thousand) and¥5,674 million, respectively, on a consolidated basis.

(Note 3) Projected redemption amounts after the consolidated balance sheet date for financial assets and securities withmaturities
As of March 31, 2015
Types of Financial Instruments

Due from Banks
Call Loans and Bills Purchased
Other Debt Purchased*1
Securities
Bonds Held to Maturity
Japanese Government Bonds
Foreign Bonds
Other Securities with Maturities
Japanese Government Bonds
Japanese Local Government
Bonds
Japanese Corporate Bonds
Foreign Bonds
Other*2
Loans and Bills Discounted
Total

190

Within 1 year

1-3 years

3-5 years

5-7 years

7-10 years

Millions of yen
Over 10 years¥ 28,079,235 ¥
0 ¥
— ¥
— ¥
— ¥
444,115————
2,830,119
104,074
49,705
10,511
6,419
7,140,210 11,439,072
9,166,962
1,705,388
2,859,863
600,000
1,800,000
1,480,000—
480,000
600,000
1,800,000
1,480,000—
480,000—————
6,540,210
9,639,072
7,686,962
1,705,388
2,379,863
3,619,984
7,753,929
4,552,600
422,500
996,630——
235,890
3,501,455
1,195,442—
1,195,442
2,306,012—

36,161
60,92843,536
15,20377,738732
489,761
762,405427,237
125,564
55,091
781,179
2,377,181
924,204
2,595,350
1,088,601
1,238,094
1,518,367
17,121
137,604
68,23853,51912,3095,732
28,131,562 15,736,232 11,785,704
5,302,236
4,078,615
7,294,016¥ 66,625,243 ¥ 27,279,379 ¥ 21,002,373 ¥ 7,018,136 ¥ 6,944,899 ¥ 11,031,361

As of March 31, 2014
Types of Financial Instruments

Within 1 year

1-3 years

3-5 years

5-7 years

7-10 years

Millions of yen
Over 10 years¥ 19,259,245 ¥2,527 ¥
— ¥
— ¥
— ¥
—
467,758—————
2,787,584
74,96760,35130,122
12,505
293,408
8,786,147 11,631,227
10,708,846
2,545,570
1,884,094
2,661,588
600,000
1,300,000
1,780,000—
360,000—
600,000
1,300,000
1,780,000—
360,000
—
—
—
—
—
—
—
8,186,147 10,331,227
8,928,846
2,545,570
1,524,094
2,661,588
5,925,125
7,789,736
5,981,000
1,294,200
919,830—

Due from Banks
Call Loans and Bills Purchased
Other Debt Purchased*1
Securities
Bonds Held to Maturity
Japanese Government Bonds
Foreign Bonds
Other Securities with Maturities
Japanese Government Bonds
Japanese Local Government
Bonds
Japanese Corporate Bonds
Foreign Bonds
Other*2
Loans and Bills Discounted
Total

30,25856,37573,922
15,57564,604779
421,781651,551
489,320
133,671
53,531
1,007,218
1,796,757
1,778,151
2,334,421
1,093,728
467,120
1,650,999
12,22455,41250,182
8,393
19,0082,590
27,834,054 13,956,403 10,609,798
4,760,685
3,830,892
7,209,394¥ 59,134,791 ¥ 25,665,125 ¥ 21,378,996 ¥ 7,336,378 ¥ 5,727,492 ¥ 10,164,391

As of March 31, 2015
Types of Financial Instruments

Within 1 year

Due from Banks
Call Loans and Bills Purchased
Other Debt Purchased
Securities *1
Bonds Held to Maturity
Japanese Government Bonds
Foreign Bonds
Other Securities with Maturities
Japanese Government Bonds
Japanese Local Government
Bonds
Japanese Corporate Bonds
Foreign Bonds
Other*2
Loans and Bills Discounted
Total

1-3 years

1 $$233,468,328 $—3,692,653
23,531,386
865,339
59,368,174 95,111,603
4,988,775 14,966,326
4,988,775 14,966,326——
54,379,399 80,145,277
30,098,813 64,471,020

3-5 years

5-7 years

Thousands of U.S. dollars
7-10 years Over 10 years

—$
—$
—$
—
—
—
—
—
413,283
87,39853,3791,961,341
76,219,863 14,179,669
23,778,696 29,113,290—
9,939,658
12,305,645
3,991,020——
12,305,645
3,991,020
9,939,658———
63,914,218 14,179,669
19,787,676 19,173,632
37,853,164
3,512,930
8,286,605—

300,668
506,596
361,989
126,410646,362
6,092
4,072,185
6,339,119
3,552,318
1,044,019
458,0636,495,218
19,765,378
7,684,413 21,579,369
9,051,313 10,294,295 12,624,656
142,355
1,144,129
567,378444,997
102,351
47,666
233,903,403 130,840,883 97,993,719 44,086,108
33,912,163 60,647,012$553,963,944 $226,817,826 $174,626,865 $ 58,353,175 $ 57,744,238 $ 91,721,643*1 Securities include those of which fair values are extremely difficult to determine.
*2 Amounts do not include loans to bankrupt, substantially bankrupt, and intensive control obligors and other loans, of which redemption amounts cannot be
projected, of ¥434,565 million ($3,613,250 thousand) and ¥518,604 million, and loans with no maturities of ¥652,236 million ($5,423,105 thousand) and¥581,570 million as of March 31, 2015 and 2014, respectively.

191

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(Note 4) Projected repayment amounts after the consolidated balance sheet date for Bonds and Notes, Borrowed Money,
and other interest-bearing liabilities
As of March 31, 2015

Types of Financial Instruments

Deposits *1
Negotiable Certificates of
DepositCall Money and Bills Sold
Borrowed Money *2
Short-term Bonds
Bonds and Notes *2
Total

Within 1 year¥

Types of Financial Instruments

As of March 31, 2015
Types of Financial Instruments

Deposits *1
Negotiable Certificates of
DepositCall Money and Bills Sold
Borrowed Money *2
Short-term Bonds
Bonds and Notes *2
Total

93,499,413 ¥ 3,298,473 ¥3-5 years

5-7 years

819,434 ¥

78,103 ¥15,642,151
52,968——
5,091,198—
965,869
1,104,853
4,305,972—
816,705—
749,976
2,106,632
1,250,358¥ 116,765,313 ¥ 6,562,928 ¥ 6,375,766 ¥As of March 31, 2014

Deposits *1
Negotiable Certificates of
DepositCall Money and Bills Sold
Borrowed Money *2
Short-term Bonds
Bonds and Notes *2
Total

1-3 years

Within 1 year¥

1-3 years

84,980,956 ¥ 3,180,878 ¥Within 1 year

1-3 years

5-7 years

759,550 ¥78,984 ¥3-5 years$ 777,412,597 $ 27,425,575 $ 6,813,292 $

62,120————124,314363,692——
193,731
1,025,914
396,149 ¥ 1,451,727

3-5 years

12,746,255
9,699
—
—
7,194,432—
5,494,545
1,478,979
145,201—
584,568—
921,520
1,353,512
1,287,998¥ 111,922,278 ¥ 6,023,068 ¥ 2,192,750 ¥

7-10 years

7-10 years

55,135————
105,313
317,958——
311,135
661,207495,433 ¥ 1,034,302
5-7 years

649,401 $Millions of yen

Over 10 years

¥

—

¥

—
—
238,115—
647,078885,194

Millions of yen

Over 10 years

¥

—

¥

—
—
163,313—650,985
814,299

Thousands of U.S. dollars
7-10 years
Over 10 years

516,510 $—

130,058,631
440,413
—
—
—
—
—
—
—
—
—
42,331,405
8,030,841
9,186,441
35,802,552
1,033,630
3,023,967
1,979,844—————
6,790,600
6,235,773
17,515,863
10,396,263
1,610,806
8,530,093
5,380,215$ 970,859,847 $ 54,568,292 $ 53,012,107 $ 3,293,837 $ 12,070,570 $ 7,360,059*1 Demand deposits are included in “Within 1 year.”*2 Amounts do not include Borrowed Money and Bonds and Notes with no maturities of ¥93,051 million ($773,686 thousand) and ¥40,900 million ($340,068
thousand), and ¥133,044 million and ¥60,200 million as of March 31, 2015 and 2014, respectively.

192

42. Fair Value of Securities and Money Held in Trust
The following tables contain information relating to “Securities,” Trading Securities, Short-term Bonds, certain other items in“Trading Assets,” Negotiable Certificates of Deposit in “Cash and Due from Banks,” certain items in “Other Debt
Purchased,” certain items in “Other Assets,” and “Money Held in Trust.”

As of March 31, 2015

Bonds Held-to-Maturity (Total)
Bonds Whose Fair Values Exceed the Consolidated
Balance Sheet Amount Bonds Held-to-Maturity:
Japanese Government Bonds
Foreign Bonds
Bonds Whose Fair Values Do Not Exceed the Consolidated
Balance Sheet Amount Bonds Held-to-Maturity:
Japanese Government Bonds
Foreign Bonds

Difference

5,647,341¥

5,677,806¥

30,465¥5,191,248
4,260,214
931,033¥

5,222,508
4,289,216
933,292¥

31,26029,001
2,259¥

456,092
99,911
356,181¥455,298
99,738355,560

¥

(794)
(173)
(621)
Millions of yen

Consolidated
Balance
Sheet Amount

Fair value

Difference¥

4,040,082¥

4,057,817¥

17,734¥

3,830,230
3,830,230—¥

3,848,185
3,848,185—¥

17,954
17,954—¥

209,852
209,852—¥

209,632
209,632
—

¥

(220)
(220)
—

Thousands of U.S. dollars

Consolidated
Balance
Sheet Amount

As of March 31, 2015

Bonds Held-to-Maturity (Total)
Bonds Whose Fair Values Exceed the Consolidated
Balance Sheet Amount Bonds Held-to-Maturity:
Japanese Government Bonds
Foreign Bonds
Bonds Whose Fair Values Do Not Exceed the Consolidated
Balance Sheet Amount Bonds Held-to-Maturity:
Japanese Government Bonds
Foreign Bonds

Fair value¥

As of March 31, 2014

Bonds Held-to-Maturity (Total)
Bonds Whose Fair Values Exceed the Consolidated
Balance Sheet Amount Bonds Held-to-Maturity:
Japanese Government Bonds
Foreign Bonds
Bonds Whose Fair Values Do Not Exceed the Consolidated
Balance Sheet Amount Bonds Held-to-Maturity:
Japanese Government Bonds
Foreign Bonds

Millions of yen

Consolidated
Balance
Sheet Amount

Fair value

Difference$

46,955,525$

47,208,836$

253,311$

43,163,284
35,422,091
7,741,193$

43,423,201
35,663,224
7,759,977$

259,917
241,133
18,784$

3,792,241
830,726
2,961,515$

3,785,635
829,284
2,956,351$(6,606)(1,442)(5,164)193

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

As of March 31, 2015

Other Securities*1 (Total)
Other Securities Whose Consolidated Balance Sheet
Amount Exceeds Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Short-term Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Other Securities Whose Consolidated Balance Sheet
Amount Does Not Exceed Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Short-term Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Money Held in Trust
Other Money Held in Trust

194

Consolidated Balance
Sheet AmountMillions of yen
Acquisition Cost

Difference¥

37,704,504¥

35,173,125¥

2,531,378*2¥

26,539,885
3,838,387
14,292,166
12,180,998
223,065—
1,888,103
8,409,331
6,207,461
188,534
2,013,335¥

23,916,691
1,651,030
14,236,356
12,156,981
218,882—
1,860,492
8,029,303
6,126,701
184,285
1,718,317¥

2,623,193
2,187,357
55,80924,016
4,183—
27,610380,027
80,7604,249
295,018¥

11,164,618
283,518
6,036,256
5,234,793
15,522
99785,840
4,844,843
3,825,059
299,661
720,122¥

11,256,434
311,919
6,047,965
5,236,173
15,53899
796,153
4,896,549
3,865,759
301,081
729,708

¥

3,415

¥

3,415

¥

¥

(91,815)(28,401)(11,708)(1,379)(15)—(10,312)(51,705)(40,699)(1,419)(9,586)—

As of March 31, 2014

Other Securities*1 (Total)
Other Securities Whose Consolidated Balance Sheet
Amount Exceeds Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Short-term Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Other Securities Whose Consolidated Balance Sheet
Amount Does Not Exceed Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Short-term Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Money Held in Trust
Other Money Held in Trust

Consolidated Balance
Sheet AmountMillions of yen
Acquisition Cost

Difference¥

40,212,540¥

39,084,860¥

1,127,679*2¥

21,440,137
2,687,603
13,767,572
11,480,120
182,761—
2,104,690
4,984,962
3,414,577
229,037
1,341,347¥

19,964,600
1,489,738
13,719,445
11,462,298
179,978—
2,077,168
4,755,416
3,382,425
223,935
1,149,054¥

1,475,537
1,197,864
48,126
17,821
2,783—
27,521
229,546
32,151
5,101
192,293¥

18,772,402
423,227
11,326,974
10,577,389
61,90099
687,584
7,022,200
5,699,638
485,888836,673¥

19,120,260
514,097
11,343,728
10,581,809
62,006
99
699,811
7,262,434
5,902,426
488,822871,185¥(347,858)(90,869)(16,753)(4,420)(105)—(12,227)(240,234)(202,787)(2,934)(34,512)

¥

1,513

¥

1,513

¥

—

195

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Thousands of U.S. dollars

Consolidated Balance
Sheet Amount

As of March 31, 2015

Other Securities*1 (Total)
Other Securities Whose Consolidated Balance Sheet
Amount Exceeds Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Short-term Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Other Securities Whose Consolidated Balance Sheet
Amount Does Not Exceed Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Short-term Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Money Held in Trust
Other Money Held in Trust

Acquisition Cost

Difference$

313,498,828$

292,451,365$

21,047,463*2$

220,669,207
31,914,757
118,834,010
101,280,436
1,854,704—
15,698,870
69,920,440
51,612,716
1,567,595
16,740,129$

198,858,332
13,727,702
118,369,975
101,080,751
1,819,922—
15,469,302
66,760,655
50,941,226
1,532,265
14,287,164$

21,810,875
18,187,055
464,035
199,685
34,782—229,568
3,159,785
671,490
35,3302,452,965$

92,829,621
2,357,347
50,189,215
43,525,349
129,065831
6,533,970
40,283,059
31,803,937
2,491,576
5,987,546$

93,593,033
2,593,496
50,286,564
43,536,818
129,198831
6,619,717
40,712,973
32,142,341
2,503,379
6,067,253$

28,400$28,400$(763,412)(236,149)(97,349)(11,469)(133)—(85,747)(429,914)(338,404)(11,803)(79,707)$—*1 The fair value of Japanese stocks is determined based on the average quoted market price over the month preceding the consolidated balance sheet date.
The fair value of securities other than Japanese stocks is determined at the quoted market price if available, or other reasonable value at the consolidatedbalance sheet date.
*2 Unrealized Gains (Losses) or Difference include gains of ¥52,059 million ($432,857 thousand) and ¥37,413 million in the fiscal years ended March 31, 2015
and 2014, respectively, by applying the fair-value hedge method and others.

Note: A summary of Trading Securities and Money Held in Trust for investment purposes and related unrealized gains andlosses recognized in the statement of income are as follows: *Millions of yen

2015

Unrealized
gains (losses)

As of March 31,

Trading Securities

Money Held in Trust for
Investment¥(19,036)$(42,438)
Thousands of U.S. dollars
2015
Unrealized
Fair value gains (losses)¥(5,103)
Millions of yen

2015
As of March 31,

Unrealized
gains (losses)

Thousands of U.S. dollars
2015
Unrealized
gains (losses)

2014

2014

Fair value

Unrealized
gains (losses)

Fair value

Unrealized
gains (losses)¥154,312¥¥166,856

¥

25

31

* Fair values of trading securities as of March 31, 2015 and 2014 are described in “41. Financial Instruments.”

196$1,283,051$

211

Other Securities Sold during the Fiscal Year
Millions of yen
Total amount Total amount
Proceedsof gainsof losses
from sales
on saleson sales

For the Fiscal Year ended March 31,
2015

Stocks
Bonds
Japanese Government Bonds
Japanese Local
Government Bonds
Japanese Corporate Bonds
Other
Total

¥

175,816
57,275,999
56,125,675¥ 81,295
63,01452,782¥ 2,228
4,322
4,069

$ 1,461,850
476,228,477
466,663,968$

67,442
1,082,881
19,379,289¥ 76,831,104

53
10,178208,921¥ 353,23147
204
102,348¥ 108,898

560,757
9,003,752
161,131,530$638,821,857

442
84,631
1,737,106$ 2,936,988

Millions of yen
Total amount
Proceedsof gains
from sales
on salesTotal amountof losses
on sales

For the Fiscal Year ended March 31,
2014

Stocks
Bonds
Japanese Government Bonds
Japanese Local
Government Bonds
Japanese Corporate Bonds
Other
Total

Thousands of U.S. dollars
Total amount Total amount
Proceedsof gainsof losses
from sales
on saleson sales¥152,135
61,282,363
60,283,392¥ 43,367
61,37555,395¥ 2,978
18,111
16,420101,652
897,318
11,655,380¥ 73,089,879

280
5,699
113,884¥ 218,627

53
1,637
57,236¥ 78,326

675,940
523,942438,869$

18,52835,936
33,838398
1,700
850,988$ 905,452

Note: The above table contains Other Securities that are deemed extremely difficult to determine fair values.

Unrealized Gains/Losses on Other Securities
Unrealized Gains/Losses on Other Securities as of March 31, 2015 and 2014 are as follows:
Millions of yen
2015

As of March 31,

Difference between Acquisition Cost and Fair Value*1*2
Other Securities
Other Money Held in Trust
Deferred Tax Liabilities
Difference between Acquisition Cost and Fair Value, net of Taxes
Amount Corresponding to Minority Interests
Amount Corresponding to Net Unrealized Gains (Losses) on Other
Securities
Owned by Affiliated Companies, which is attributable to MHFGNet Unrealized Gains (Losses) on Other Securities¥

2,479,388
2,479,388—(693,523)
1,785,865¥

55,379¥6,863
1,737,348¥

2014

Thousands of
U.S. dollars
2015

1,090,304
1,090,304—(309,344)
780,959$20,615,184
20,615,184—(5,766,385)
14,848,799

51,543

460,459

4,105
57,064
733,522 $ 14,445,404*1 The difference between acquisition cost and fair value excludes ¥(52,059) million ($(432,857) thousand) and ¥(37,413) million were recognized in the fiscal

years ended March 31, 2015 and 2014, respectively, by applying the fair-value hedge method and others, and includes translation differences regarding
securities which do not have readily determinable fair value.
*2 Other securities includes translation differences regarding securities which do not have readily determinable fair value.

197

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

43. Derivatives Information
The fair value of derivatives not qualifying for hedge accounting and derivatives qualifying for hedge accounting as ofMarch 31, 2015 and 2014 is shown in the tables below. In the following tables:(i) Contract value represents notional amounts for swap transactions and contract amounts for other transactions.
Contract value amounts do not indicate the market risk related to derivative transactions.
(ii) Fair values of listed contracts are based on the closing prices of the Osaka Exchange, the Tokyo Financial
Exchange, the New York Mercantile Exchange and others. Fair values of over-the-counter contracts and intercompany or internal transactions are based on the discounted value of future cash flows, option pricing models andothers.

(1) Derivative Transactions not Qualifying for Hedge Accounting

Transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated
statement of income.

(a) Interest Rate-Related Transactions
Contract value
Total
Over one year

As of March 31, 2015

Listed:Futures:
Sold
BoughtOptions:
Sold
BoughtOver-the-Counter:
FRAs:
Sold
BoughtSwaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Receive Fixed / Pay Fixed
Options:
Sold
BoughtInter-company or Internal Transactions:Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Total

198

¥

20,114,158
18,446,654¥

10,963,649
8,159,936

Millions of yen
Unrealized
gains (losses)

Fair value¥(72,633)
66,886¥(72,633)
66,886

1,400,403
2,237,975

171,604
216,340(2,288)
2,977

1,258
(1,663)

10,996,182
10,280,528

2,026,655
901,965(7,643)
4,519(7,643)
4,519

469,271,002
465,176,624
77,934,862
759,547

367,963,727
361,554,098
54,389,480
702,891

9,081,978(8,881,155)
24,135
15,6929,081,978(8,881,155)
24,135
15,692

12,678,598
8,857,843

7,466,690
5,410,994(175,701)
146,701(175,701)
146,701

4,955,416
11,634,436
42,678/4,692,702
10,636,915—/

92,893(140,360)(5)
155,997

92,893(140,360)(5)
154,904¥¥

Contract value
Total
Over one year

As of March 31, 2014

Listed:Futures:
Sold
BoughtOptions:
Sold
BoughtOver-the-Counter:
FRAs:
Sold
BoughtSwaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Receive Fixed / Pay Fixed
Options:
Sold
BoughtInter-company or Internal Transactions:Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Total

¥

11,434,707
9,827,139¥

6,223,939
5,320,408

Millions of yen
Unrealized
gains (losses)

Fair value¥(21,915)
23,324¥(21,915)
23,3242,186,768
1,999,072

595,526
529,727(4,124)
3,435

315
(472)

8,433,201
8,632,960

412,133
595,270(1,240)1,172(1,240)1,172

407,440,608
403,412,602
78,629,699
548,055

306,247,246
302,059,018
51,655,329
510,5886,628,141(6,518,422)
18,800
10,242

6,628,141(6,518,422)
18,800
10,242

11,831,701
9,905,879

8,344,424
6,449,245(154,320)
143,026(154,320)
143,026

4,501,399
9,999,717
41,922/

4,096,364
8,903,953
41,922/

42,775(24,133)(2)
146,759

42,775(24,133)(2)
147,292¥¥

199

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

As of March 31, 2015

Listed:Futures:
Sold
BoughtOptions:
Sold
BoughtOver-the-Counter:
FRAs:
Sold
BoughtSwaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Receive Fixed / Pay Fixed
Options:
Sold
BoughtInter-company or Internal Transactions:Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Total

200

Thousands of U.S. dollars
Unrealized
Fair value
gains (losses)

Contract value
Total
Over one year

$ 167,241,694
153,377,025$

91,158,637
67,846,815$(603,917)
556,139$(603,917)
556,139

11,643,833
18,607,929

1,426,828
1,798,786(19,031)24,757

10,467(13,828)

91,429,138
85,478,745

16,850,885
7,499,505(63,550)
37,582(63,550)
37,582

3,901,812,606
3,867,769,388
647,999,186
6,315,352

3,059,480,565
3,006,186,897
452,228,161
5,844,283

75,513,250(73,843,481)
200,679
130,478

75,513,250(73,843,481)
200,679
130,478

105,417,800
73,649,647

62,082,734
44,990,395(1,460,891)
1,219,765(1,460,891)
1,219,765

41,202,430
96,735,984
354,852/

39,018,068
88,441,966—/

772,374(1,167,046)(46)$
1,297,062

772,374(1,167,046)(46)
1,287,975$

(b) Currency-Related Transactions
Contract value
Total
Over one year

As of March 31, 2015

Listed:Futures:
Sold
BoughtOptions:
Sold
BoughtOver-the-Counter:
Swaps
Forwards:
Sold
BoughtOptions:
Sold
BoughtInter-company or Internal Transactions:
Swaps
Forwards:
Bought
Total

¥

¥

2,329
21,625

Fair value

¥

¥

—
—

¥

—
—

—
—

—
—

—
—

—
—

39,935,672

25,590,121(23,922)(68,615)61,859,800
27,467,918

3,505,977
1,866,989(729,229)
883,713(729,229)
883,713

4,079,543
3,666,208

1,354,653
1,159,267(318,638)
145,563(184,339)
18,0542,293,679

1,534,304

184,643

3,577

158,892/—/¥

Contract value
Total
Over one year

As of March 31, 2014

Listed:Futures:
Sold
BoughtOptions:
Sold
BoughtOver-the-Counter:
Swaps
Forwards:
Sold
BoughtOptions:
Sold
BoughtInter-company or Internal Transactions:
Swaps
Forwards:
BoughtTotal

26,33344,356

Millions of yen
Unrealized
gains (losses)

23,65336,577¥2,370—(2,766)
139,364¥

Millions of yen
Unrealized
gains (losses)

Fair value

¥

1,155
(12)

(2,766)(79,605)

¥

1,155
(12)

1,591
1,591

—
—

(2)
1

(2)
1

37,982,073

23,686,551

72,286

81,56748,353,520
21,270,382

2,396,363
1,582,140(521,989)
584,296(521,989)
584,296

4,092,234
3,717,363

1,968,449
1,723,713(254,982)
149,686(79,347)(28,017)2,530,888

1,213,503

392,733

4,255

142,564
/

—
/

¥

858
424,032¥858
42,764201

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

As of March 31, 2015

Listed:Futures:
Sold
BoughtOptions:
Sold
BoughtOver-the-Counter:
Swaps
Forwards:
Sold
BoughtOptions:
Sold
BoughtInter-company or Internal Transactions:
Swaps
Forwards:
BoughtTotal

Thousands of U.S. dollars
Unrealized
Fair value
gains (losses)

Contract value
Total
Over one year$

218,951
368,808$

19,372
179,809

$

—
—

$

—
—

—
—

—
—

—
—

—
—

332,050,155

212,772,274(198,908)(570,515)

514,341,066
228,385,455

29,150,886
15,523,321(6,063,267)
7,347,749(6,063,267)
7,347,749

33,919,876
30,483,149

11,263,440
9,638,876(2,649,360)
1,210,304(1,532,715)
150,116

19,071,087

12,757,165

1,535,245

29,745

1,321,135
/

—
/

$

(23,003)
1,158,760$(23,003)(661,890)(c) Stock-Related Transactions
Contract value
Total
Over one year

As of March 31, 2015

Listed:Index Futures:
Sold
BoughtIndex Futures Options:
Sold
BoughtOver-the-Counter:
Equity Linked Swaps
Options:
Sold
BoughtOther:
Sold
Bought
Total

202

¥

390,456
27,315¥

18,332
1,430

Millions of yen
Unrealized
gains (losses)

Fair value¥(3,833)196¥(3,833)
196

663,199645,806

172,682
145,100(68,155)
58,483(36,499)
28,089181,297

173,993

3,473

3,473

495,265
317,510364,698
218,019(124,602)
133,441(111,770)
120,027

12,127
143,454/—
132,512/220
11,05010,275220
11,05010,955¥¥

Contract value
Total
Over one year

As of March 31, 2014

Listed:Index Futures:
Sold
BoughtIndex Futures Options:
Sold
BoughtOver-the-Counter:
Equity Linked Swaps
Options:
Sold
BoughtOther:
Sold
Bought
Total

¥

¥

3,127
1,375

Fair value¥$(5,833)694¥(5,833)694

813,856
747,113160,012
108,037(52,217)57,001(21,940)
26,616

316,375

269,784

9,384

9,384

474,013391,844

253,480
240,158(107,163)
122,104(86,543)
106,053—
99,119/—72,600/—(1,103)
22,866—(1,103)27,328¥3,246,497
227,121$

152,427
11,894¥

Thousands of U.S. dollars
Unrealized
Fair value
gains (losses)

Contract value
Total
Over one year

As of March 31, 2015

Listed:Index Futures:
Sold
BoughtIndex Futures Options:
Sold
BoughtOver-the-Counter:
Equity Linked Swaps
Options:
Sold
BoughtOther:
Sold
BoughtTotal

239,437
19,249Millions of yen
Unrealized
gains (losses)$(31,871)
1,631$(31,871)
1,631

5,514,257
5,369,643

1,435,790
1,206,452(566,691)
486,266(303,476)
233,554

1,507,417

1,446,687

28,882

28,882

4,117,946
2,639,985

3,032,332
1,812,754(1,036,021)
1,109,520(929,330)
997,983

100,833
1,192,772/—
1,101,794/

1,838
91,88285,436

1,838
91,882
91,093$$203

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(d) Bond-Related Transactions

Contract value
As of March 31,

Listed:Futures:
Sold
BoughtFutures Options:
Sold
BoughtOver-the-Counter:
Options:
Sold
Bought
Total

Total

2015

Over
one year

Fair
Unrealized
value gains (losses)¥ (3,524)
2,738¥ (3,524)
2,738

908,250
45,968

—
—

(155)
35

(44)
0

350,070
306,172

—
—

(362)
618

80
(133)

831,084
843,332/

165,564
165,564/(22,095)
21,287¥ (1,713)(19,935)
19,923¥(840)

642,479
538,920/

38,617
38,617/(9,294)
8,279
¥
(772)

(5,703)
5,989
¥
219

Contract value

Listed:Futures:
Sold
BoughtFutures Options:
Sold
BoughtOver-the-Counter:
Options:
Sold
Bought
Total

204

Total

Over
One year

Fair
Unrealized
value gains (losses)$ 5,419,122 $4,466,798——$ (29,303)
22,772$ (29,303)
22,7727,551,763
382,209——(1,293)
292

(372)
6

6,910,155 1,376,610
7,011,990 1,376,610//(183,716)
177,000$ (14,248)(165,752)
165,660$ (6,989)¥

1,047(1,061)

Unrealized
gains (losses)——

Thousands of U.S. dollars¥ 711,733 ¥ 4,144
854,379
2,220

Fair
value

¥ 651,757 ¥
537,2212015
As of March 31,

Contract value
Over
Total one year

Millions of yen

2014

¥

1,047
(1,061)(e) Commodity-Related Transactions
2015

Contract value
As of March 31,

Listed:Futures:
Sold
BoughtOver-the-Counter:
Swaps
Options:
Sold
BoughtTotal¥

10,301
10,330¥163,398
149,067/

85,65385,891

597
(618)

—

$

Fair
value

Unrealized
gains (losses)

(322)
385

(37)

(37)

—

—

—

—

93,254
9,049
76,317(4,657)/ ¥ 4,332

9,049(4,657)¥ 4,332

201,003184,254/

90,993(10,918)
74,98917,683/ ¥ 6,828(10,918)
17,683¥ 6,828

2015

1,420
3,043

¥

Over
one year

1,373 ¥
1,452

¥

(322)
385

Thousands of U.S. dollars

Over
one year

Total

$

170 ¥
365

Total

40,507 ¥
37,531

Contract value

Listed:Futures:
Sold
BoughtOver-the-Counter:
Swaps
Options:
Sold
BoughtTotal

Fair
Unrealized
value gains (losses)

597 ¥
(618)

197

As of March 31,

Contract valueOver
one year

Total

Millions of yen

2014

Fair
Unrealized
value gains (losses)

$

4,970
(5,145)$4,970(5,145)

1,646

—

(315)

(315)

1,358,594
1,239,442/

775,379
634,553/

75,240(38,725)$ 36,025

75,240(38,725)$ 36,025

Note: Commodities include oil, copper, aluminum and others.

205

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(f) Credit Derivative Transactions
Contract value
Total
Over one year

As of March 31, 2015

Over-the-Counter:
Credit Derivatives:
Sold
BoughtTotal¥

As of March 31, 2015

Over-the-Counter:
Credit Derivatives:
Sold
BoughtTotal¥

2,098,088
2,290,170/¥

2,201,564
2,548,197/¥

1,876,471
2,129,993/¥¥$ 20,297,968
21,832,602/$

17,444,819
19,041,907/

33,718(28,307)
5,410

¥
¥

¥
¥

24,493(8,940)15,552

33,718(28,307)
5,410
Millions of yen
Unrealized
gains (losses)

Fair value¥¥

24,493(8,940)15,552Thousands of U.S. dollars
Unrealized
Fair value
gains (losses)

Contract value
Total
Over one year

Note: “Sold” and “Bought” indicate assumption and cession of credit risk, respectively.

206

Fair value

Contract value
Total
Over one year

As of March 31, 2014

Over-the-Counter:
Credit Derivatives:
Sold
BoughtTotal

2,441,236
2,625,807/

Millions of yen
Unrealized
gains (losses)$$

280,358(235,368)
44,990$$280,358(235,368)
44,990(2) Derivative Transactions Qualifying for Hedge Accounting(a) Interest Rate-Related Transactions

As of March 31, 2015

Primary Method :Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Fair Value Hedge Method :Swaps:
Receive Float / Pay Fixed
Receive Float / Pay Float
Exceptional Accrual Method :Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Total

As of March 31, 2014

Primary Method :Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Fair Value Hedge Method :Swaps:
Receive Float / Pay Fixed
Receive Float / Pay Float
Exceptional Accrual Method :Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Total

Primary
hedged items

Loans, deposits, bonds andnotes, borrowings andothersOther securities and others

Loans, borrowings andothers¥ 25,936,670
7,459,578
42,678¥ 23,540,848
7,216,778—

291,094
1,774

239,313
1,199

Loans, deposits, bonds andnotes, borrowings andothersOther securities and others

Loans, borrowings andothersFair value¥

256,734(120,535)
5(1,384)(190)
Note 2.

30,00060,945/

Primary
hedged items

Millions of yen

Contract value
Total
Over one year

10,00048,652/¥Millions of yen

Contract value
Total
Over one year

¥ 25,093,042
7,384,122
121,922¥ 20,684,955
6,892,414
71,922

218,436—

206,607—

134,629

Fair value¥

182,200(103,681)
65(1,004)—Note 2.

30,00093,122/30,00083,213/¥77,580207

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

As of March 31, 2015

Primary Method :Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Fair Value Hedge Method :Swaps:
Receive Float / Pay Fixed
Receive Float / Pay Float
Exceptional Accrual Method :Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Total

Primary
hedged items

Loans, deposits, bonds andnotes, borrowings andothersOther securities and others

Loans, borrowings andothersThousands of U.S. dollars
Contract value
Total
Over one year
Fair value$ 215,653,702
62,023,598
354,852$ 195,733,338
60,004,810—

2,420,340
14,754

1,989,800
9,970$

2,134,653(1,002,211)
46(11,514)(1,580)Note 2.

249,439506,737/

83,146
404,524/$

1,119,394

Notes: 1. Primarily the deferred method is applied under “Accounting and Auditing Treatment Relating to Adoption of
Accounting Standards for Financial Instruments for Banks” (JICPA Industry Audit Committee Report No. 24).
2. Since derivative transactions qualifying for the exceptional accrual method are treated as a unit of loans andborrowings, hedged items, those fair values are included in fair values of such loans and borrowings in “41.
Financial Instruments.”

208

(b) Currency-Related Transactions

As of March 31, 2015

Primary Method :Swaps
Forwards:
Sold
Allocation Method :Forwards:
Sold
Total

As of March 31, 2014

Primary Method :Swaps
Forwards:
Sold
Allocation Method :Forwards:
Sold

Loans, deposits, borrowings,
parent company’s interest of
subsidiaries’ net assets andothersPrimary Method :Swaps
Forwards:
Sold
Allocation Method :Forwards:
Sold
Total

7,560,770¥

281,490

Primary
hedged items

Loans, deposits, borrowings,
parent company’s interest of
subsidiaries’ net assets andothersShort-term bonds¥(136,735)(33)
Note 2.

—/¥¥

6,803,174
276,593¥

1,544,593(136,769)
Millions of yen

Contract value
Total
Over one year

Primary
hedged items

Short-term bonds

2,045,971

Fair value

—

2,729
/

Total

As of March 31, 2015¥

Short-term bonds

Loans, deposits, borrowings,
parent company’s interest of
subsidiaries’ net assets andothersMillions of yen

Contract value
Total
Over one year

Primary
hedged items

Fair value¥—(406,588)(2,496)Note 2.

3,391

—

/

/

¥

(409,084)

Thousands of U.S. dollars
Contract value
Total
Over one year
Fair value$ 62,864,975$ 17,011,488$ (1,136,907)

2,340,486—(277)
Note 2.

22,696/—/$ (1,137,184)

Notes: 1. Primarily the deferred method is applied under “Accounting and Auditing Treatment Relating to Adoption of
Accounting Standards for Foreign Currency Transactions for Banks” (JICPA Industry Audit Committee Report No.
25).
2. Forward Exchange Contracts qualifying for the allocation method are treated as a unit of short-term bonds,
hedged items.

209

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(c) Stock-Related Transactions

As of March 31, 2015

Fair Value Hedge Method :Forward Stock Agreements:
Sold
Index Futures:
Sold
BoughtTotal

As of March 31, 2014

Fair Value Hedge Method :Forward Stock Agreements:
Sold
Index Futures:
Sold
BoughtTotal

As of March 31, 2015

Fair Value Hedge Method :Forward Stock Agreements:
Sold
Index Futures:
Sold
BoughtTotal

210

Millions of yen

Contract value
Total
Over one year

Primary
hedged items

Other securities¥

113,707

¥

—

131
277

—
—

/

/

Fair value¥(21,765)¥(3)
3(21,764)

Millions of yen

Contract value
Total
Over one year

Primary
hedged items

Other securities¥

23,327

¥

—

106
252

—
—

/

/

Fair value

¥

800

¥

2
(3)
800

Thousands of U.S. dollars
Contract value
Total
Over one year
Fair value

Primary
hedged items

Other securities$

945,436

$

—

1,090
2,311

—
—

/

/

$

(180,970)

$

(28)
30
(180,968)44. Segment Information
Segment Information by Management Approach
1. Summary of Reportable Segment
We engage in banking, trust banking, securities and other businesses through consolidated subsidiaries and affiliates. As
these subsidiaries and affiliates are in different industries and regulatory environments, we disclose business segment
information based on the relevant principal consolidated subsidiaries such as MHBK, MHTB and MHSC for investors tomeasure the present and future cash flows properly.
Operating segments of MHBK are aggregated based on the type of customer characteristics and are aggregated into thefollowing seven reportable segments: Personal Banking; Retail Banking; Corporate Banking (Large Corporations);
Corporate Banking; Financial Institutions & Public Sector Business; International Banking; and Trading and others.

2. Calculating Method of Gross Profits (excluding the amounts of credit costs of trust accounts), Net
Business Profits (excluding the amounts of credit costs of trust accounts, before reversal of(provision for) general reserve for losses on loans), and the Amount of Assets by Reportable
Segment
The following information of reportable segment is based on internal management reporting.
Gross profits (excluding the amounts of credit costs of trust accounts) is the total amount of Interest income, Fiduciaryincome, Fee and commission income, Trading income, and Other operating income.
Net business profits (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) generalreserve for losses on loans) is the amount of which General administrative expenses (excluding non-recurring expenses)
and Other (Equity in income from investments in affiliates and certain other consolidation adjustments) are deducted from
Gross profits (excluding the amounts of credit costs of trust accounts).
Asset information by segment is not prepared on the grounds that management does not use asset information of eachsegment for the purpose of asset allocation or performance evaluation.
Gross profits (excluding the amounts of credit costs of trust accounts) relating to transactions between segments
is based on the current market price.

211

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

3. Gross Profits (excluding the amounts of credit costs of trust accounts) and Net Business Profits or
Losses (excluding the amounts of credit costs of trust accounts, before reversal of (provision for)general reserve for losses on loans) by Reportable Segment
Millions of yen
MHBK (Consolidated)
MHBK (Unconsolidated)

For the Fiscal Year
ended March 31,
2015

Gross Profits(excluding theamounts ofcredit costs oftrust accounts)
Net Interest
IncomeNet Noninterest Income
Total
General and
Administrative
Expenses(excluding NonRecurring
Losses)OthersNet BusinessProfits(excluding theamounts ofcredit costs oftrust accounts,
before reversalof (provisionfor) generalreserve forlosses onloans)

212

Financial
Institutions& Public
sectorbusiness

International

OthersTradingandothersRetailbanking

Corporatebanking(Largecorporations)¥ 217,500 ¥ 78,400¥ 179,400¥ 100,500¥ 33,500¥ 141,900 ¥ 183,696¥ 934,896¥ 152,401¥ 1,087,298

49,80053,300¥ 267,300 ¥ 131,700

127,800¥ 307,200

79,400¥ 179,900

27,300¥ 60,800

170,100
52,874
560,574¥ 312,000 ¥ 236,571 ¥ 1,495,471

37,845¥ 190,247

598,420¥ 1,685,718

118,400—

94,400—76,500—30,300—92,600—188,037—

833,737—

70,963(43,198)

904,700(43,198)¥ 33,800 ¥ 13,300¥ 212,800¥ 103,400¥ 30,500¥ 219,400¥ 48,533¥ 661,733¥ 76,085¥ 737,819

Personalbanking

233,500—

CorporatebankingMHTB(Consolidated)

Gross Profits(excluding theamounts ofcredit costs oftrust accounts)
Net Interest
IncomeNet Noninterest Income
Total
General and
Administrative
Expenses(excluding NonRecurring
Losses)OthersNet BusinessProfits(excluding theamounts ofcredit costs oftrust accounts,
before reversalof (provisionfor) generalreserve forlosses onloans)MHSC(Consolidated)¥ 39,484¥

122,565¥ 162,049

1,753

Others¥

MHFG(Consolidated)897¥ 1,129,433

335,799¥ 337,552

61,520¥ 62,418

1,118,305¥ 2,247,738

94,527(3,697)

267,97032

54,025(2,689)1,321,224(49,552)¥ 63,824¥ 69,614¥ 5,703¥ 876,961

213

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Millions of yen
MHBK (Consolidated)
MHBK (Unconsolidated)

For the Fiscal Year
ended March 31,
2014

Gross Profits(excluding theamounts ofcredit costs oftrust accounts)
Net Interest
IncomeNet Noninterest Income(expense)
Total
General and
Administrative
Expenses(excluding NonRecurring
Losses)OthersNet BusinessProfits(excluding theamounts ofcredit costs oftrust accounts,
before reversalof (provisionfor) generalreserve forlosses onloans)

214

Financial
Institutions& Public
sectorbusiness

International

OthersTradingandothers

Personalbanking

Retailbanking

Corporatebanking(Largecorporations)¥ 164,600¥ 60,400¥ 170,700¥ 77,300¥ 30,700¥ 128,900 ¥ 167,508¥ 800,108¥ 133,741¥ 933,849

31,60038,000¥ 196,200 ¥ 98,400

135,400¥ 306,100

55,800¥ 133,100

21,700¥ 52,400

139,800(24,097)398,202¥ 268,700 ¥ 143,410 ¥ 1,198,310

9,121¥ 142,862

407,323¥ 1,341,173

87,800—83,800—58,800—25,100—82,500—149,728—

659,028—

52,263(56,037)

711,291(56,037)¥ 24,900 ¥ 10,600¥ 222,300¥ 74,300¥ 27,300¥ 186,200¥ (6,317)¥ 539,282¥ 34,561¥ 573,844

171,300—

CorporatebankingGross Profits(excluding theamounts ofcredit costs oftrust accounts)
Net Interest
IncomeNet Noninterest Income(expense)
Total
General and
Administrative
Expenses(excluding NonRecurring
Losses)OthersNet BusinessProfits(excluding theamounts ofcredit costs oftrust accounts,
before reversalof (provisionfor) generalreserve forlosses onloans)

MHFG(Consolidated)

MHSC(Consolidated)

Others¥ 40,181¥

2,937¥ 131,334¥ 1,108,303

108,155¥ 148,337

283,853¥ 286,791

127,644¥ 258,979

926,978¥ 2,035,281

90,927(2,929)246,21036

180,824(2,831)

1,229,253(61,762)¥ 54,480¥ 40,617¥ 75,323¥ 744,264

MHTB(Consolidated)

215

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements（Aggregate of the former MHBK for the first quarter, the former MHCB for the first quarter, and MHBK after the merger from thesecond quarter to the fourth quarter ）Millions of yen

For the Fiscal Year
ended March 31,
2014

Gross Profits(excluding theamounts ofcredit costs oftrust accounts)
Net Interest
IncomeNet Noninterest Income(expense)
Total
General and
Administrative
Expenses(excluding
Non-Recurring
Losses)OthersNet BusinessProfits(excluding theamounts ofcredit costs oftrust accounts,
before reversalof (provisionfor) generalreserve forlosses onloans)

216

Personalbanking

Aggregate of the former MHBK for the first quarter, the former MHCB for the first quarter,and MHBK after the merger from the second quarter to the fourth quarter
Trading
InterFinancial
Corporate
Corporate
Retailandnational
Institutions
bankingbankingbankingothers& Public(Largesectorcorporation)business¥ 218,000¥ 80,700¥ 173,300¥ 102,500¥ 35,500¥ 128,900¥ 184,852¥ 923,752

39,800¥ 257,800

49,800¥ 130,500

140,400¥ 313,700

70,100¥ 172,600

24,100¥ 59,600

139,800¥ 268,700(3,636)¥ 181,215

460,363¥ 1,384,115

226,400—

116,700—

87,200—77,700—29,000—82,500—171,616—

791,116—¥ 31,400¥ 13,800¥ 226,500¥ 94,900¥ 30,600¥ 186,200¥ 9,598¥ 592,998

Thousands of U.S. dollars

For theFiscal Year
ended
March 31,
2015

Gross
Profits(excluding theamountsof credit
costs oftrust
accounts)
Net
Interest
IncomeNet Noninterest
Income
Total
Generaland
Administrative
Expenses(excluding NonRecurring
Losses)OthersNet
Business
Profits(excluding theamountsof credit
costs oftrust
accounts,
beforereversalof(provisionfor)generalreservefor losses
on loans)

Personalbanking

Retailbanking

Corporatebanking(Largecorporations)$1,808,431$ 651,867$1,491,644

414,068$2,222,499

443,170$1,095,037

1,941,465—$ 281,034

MHBK (Consolidated)
MHBK (Unconsolidated)
Corporatebanking

OthersFinancial
Institutions& Public
sectorbusiness

International

Tradingandothers$ 835,619$278,540$1,179,845$1,527,369 $ 7,773,315$1,267,160

1,062,609$2,554,253

660,182$1,495,801

226,989$505,529

1,414,318$2,594,163

439,632
4,660,968$1,967,001 $12,434,283

314,675
4,975,643$1,581,835 $14,016,118

984,452—

784,901—

636,069—

251,933—

769,934—$ 110,585$1,769,352$ 859,732$253,596$1,824,229

1,563,460—$ 9,040,475

6,932,214—590,035(359,177)

7,522,249(359,177)$ 403,541 $ 5,502,069$ 632,623$ 6,134,692

217

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

MHTB(Consolidated)

Gross Profits(excluding theamounts ofcredit costs oftrust accounts)
Net Interest
IncomeNet Noninterest Income
Total
General and
Administrative
Expenses(excluding NonRecurring
Losses)OthersNet BusinessProfits(excluding theamounts ofcredit costs oftrust accounts,
before reversalof (provisionfor) generalreserve forlosses onloans)MHSC(Consolidated)$ 328,299$

1,019,085$ 1,347,384

14,576

Others$

MHFG(Consolidated)

7,464$ 9,390,814

2,792,045$ 2,806,621

511,519$ 518,983

9,298,292$ 18,689,106

785,965(30,746)

2,228,075
271

449,201(22,359)

10,985,490(412,011)$ 530,673$ 578,817$ 47,423$ 7,291,605

Notes: 1.Gross profits (excluding the amounts of credit costs of trust accounts) is reported instead of sales reported by general
corporations.
2. “Others” includes elimination of transactions between each subsidiary.
3. Following the change in the allocation method between customer segments made in April, 2014, reclassification was made on
the above table for the fiscal year ended March 31, 2014 to reflect the relevant change.
4. In the above table for the fiscal year ended March 31, 2014, “MHBK (Unconsolidated)” reports the results of the former MHCB for
the first quarter and MHBK after the merger from the second quarter to the fourth quarter. “Others” includes the result of theformer MHBK for the first quarter.

218

4. The Difference between the Total Amounts of Reportable Segments and the Recorded Amounts inConsolidated Statement of Income, and the Contents of the Difference (Matters relating toadjustment to difference)
The above amount of Gross profits (excluding the amounts of credit costs of trust accounts) and that of Net businessprofits (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) general reserve forlosses on loans) derived from internal management reporting by reportable segment are different from the amounts
recorded in Consolidated Statement of Income.
The contents of the difference for the period are as follows:(a) The Total of Gross Profits (excluding the amounts of credit costs of trust accounts) of Segment Information and
Ordinary Profits
Thousands of
U.S. dollars

Millions of yen
2015

2014

2015

Gross Profits (excluding the amounts of credit costs of trust
accounts):
Total Amount of the Above Segment Information¥ 2,247,738¥ 2,035,281$ 18,689,105
Other Ordinary Income
301,037
331,333
2,503,016
General and Administrative Expenses(1,351,611)(1,258,227)(11,238,145)
Other Ordinary Expenses(186,296)(120,800)(1,548,987)
Ordinary Profits¥ 1,010,867¥
987,587$ 8,404,989
Note: Ordinary profits represents Total Income excluding certain special income less Total Expenses excluding certain
special expenses.

(b) The Total of Net Business Profits (excluding the amounts of credit costs of trust accounts, before reversal of(provision for) general reserve for losses on loans) of Segment Information and Income before Income Taxes andMinority Interests Recorded in Consolidated Statement of Income
Thousands of
U.S. dollars

Millions of yen

Net Business Profits (excluding the amounts of credit costs oftrust accounts, before reversal of (provision for) general reserve
for losses on loans):
Total Amount of the Above Segment Information
Credit Costs for Trust Accounts
General and Administrative Expenses (non-recurring losses)
Expenses Related to Portfolio Problems (including reversal of(provision for) general reserve for losses on loans)
Gains on Reversal of Reserves for Possible Losses on Loans,and other
Net Gains (Losses) Related to Stocks
Net Extraordinary Gains (Losses)
Other
Income before Income Taxes and Minority Interests Recordedin Consolidated Statement of Income

2015

¥

¥

876,961—(30,386)

2014¥

744,264—(28,973)2015$

7,291,605—(252,655)(87,051)(23,355)(723,798)

82,351
131,910(20,235)
37,082

136,235
77,031(2,220)82,384

684,724
1,096,789(168,250)
308,324

990,632¥

985,366$

8,236,739

219

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

5. Related Information(a) Information about Geographic Areas(i) Ordinary income

2015

Ordinary Income

2014

Ordinary Income

2015

Ordinary IncomeJapan¥ 2,375,535

Americas¥Japan¥ 2,275,599

Europe¥Americas¥Japan$ 19,751,689

284,770$

202,888

184,355

Europe¥180,856

Americas

Europe2,367,756$ 1,532,847

Asia/Oceania
excluding Japan

¥335,564

Millions of yen
Total

¥

Millions of yen

Asia/Oceania
excluding Japan

¥

268,415

3,180,225

Total

¥

2,927,760

Thousands of U.S. dollars
Asia/Oceania
excluding Japan
Total$ 2,790,092$ 26,442,384

Notes: 1. Geographic analyses are presented based on geographic contiguity, similarities in economic activities, andrelation of business operations. The above table shows Ordinary Income instead of sales of non-financial
companies.
2.Japan includes Ordinary Income of MHFG and domestic consolidated subsidiaries excluding overseas
branches, Americas includes Ordinary Income of consolidated subsidiaries and branches in Canada, theUnited States of America and others, Europe includes Ordinary Income of consolidated subsidiaries andbranches in the United Kingdom and others and Asia/Oceania includes Ordinary Income of consolidated
subsidiaries and branches in Hong Kong, the Republic of Singapore and others.
(ii) Tangible fixed assets
Information on tangible fixed assets by geographical areas as of March 31, 2015 and 2014 is not disclosed sincetangible fixed assets in Japan accounted for more than 90% of tangible fixed assets.
(b) Information about Major Customers
Information about major customers is not disclosed since there are no outside customers accounted for more than
10% of Ordinary Income of the Company.

220

6. Information about Impairment Loss on Tangible Fixed Assets by Reportable Segment
Millions of yen
MHBK (Consolidated)
MHBK (Unconsolidated)
Personalbanking
For the Fiscal Year
ended March 31, 2015

Impairment Loss¥

Retailbanking— ¥—¥Corporatebanking— ¥MHSC(Consolidated)

MHTB(Consolidated)

Impairment Loss

Corporatebanking(Largecorporations)

¥ 59

¥

859

—

Financial
Institutions& Public
sectorbusiness¥— ¥OthersTradingandothers— ¥10,387 ¥ 10,387 ¥0 ¥ 10,387

MHFG(Consolidated)

Others¥International52¥ 11,358

Millions of yen
MHBK (Consolidated)
MHBK (Unconsolidated)
Personalbanking
For the Fiscal Year
ended March 31, 2014

Impairment Loss¥

Retailbanking

— ¥

—

MHTB
(Consolidated)

Impairment Loss

¥ 1,153

Corporatebanking(Largecorporations)¥

Corporatebanking— ¥MHSC(Consolidated)

¥

149

—

Financial
Institutions& Public
sectorbusiness¥— ¥OthersTradingandothers— ¥ 3,538 ¥ 3,538¥ 1,645 ¥ 5,184

MHFG(Consolidated)

Others¥International19¥ 6,506221

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Thousands of U.S. dollars
MHBK (Consolidated)
MHBK (Unconsolidated)

For the Fiscal
Year ended
March 31, 2015

Impairment
Loss

$

— $

MHTB
(Consolidated)

Impairment
Loss

—

$

— $

$

—

$

7,143

$

OthersTradingandothersInternational— $—$ 86,364 $ 86,364$ 6 $ 86,370

MHFG(Consolidated)

OthersMHSC(Consolidated)$ 493

Financial
Institutions& Public
sectorbusiness

Corporatebanking

Corporatebanking(Largecorporations)

Retailbanking

Personalbanking440$ 94,446

7. Information about Amortization and Unamortized Balance of Goodwill by Reportable Segment
Millions of yen
MHBK (Consolidated)
MHBK (Unconsolidated)
Personalbanking

For the Fiscal Year ended
March 31, 2015

Amortization of Goodwill ¥Unamortized Balance of¥Goodwill

Amortization of Goodwill
Unamortized Balance ofGoodwill

222

Retailbanking

— ¥

—

— ¥

—

Corporatebanking(Largecorporations)

Corporatebanking

¥

— ¥

—

¥

— ¥

—

OthersFinancial
Institutions& Public
sectorbusiness

International

¥

—

¥

— ¥

— ¥

—

¥

¥

—

¥

— ¥

— ¥

—

¥10,553 ¥10,553

Others

MHFG(Consolidated)

MHTB(Consolidated)

MHSC(Consolidated)

¥

—

¥

—

¥

2,912

¥

¥

—

¥

—

¥

48,063¥ 58,617

3,698

Tradingandothers785 ¥785Millions of yen
MHBK (Consolidated)
MHBK (Unconsolidated)
Personalbanking

For the Fiscal Year ended
March 31, 2014

Amortization of Goodwill ¥Unamortized Balance of¥Goodwill

Retailbanking

— ¥

—

— ¥

—

Corporatebanking(Largecorporations)

Corporatebanking

¥

— ¥

—

¥

— ¥

—

International

¥

—

¥

— ¥

— ¥

—

¥

¥

—

¥

— ¥

— ¥

—

¥ 11,262 ¥11,262

Tradingandothers

685 ¥

685

MHFG
(Consolidated)

OthersMHTB(Consolidated)

MHSC(Consolidated)

¥

—

¥

—

¥

2,986

¥

¥

—

¥

—

¥

50,976¥ 62,238

Amortization of Goodwill
Unamortized Balance ofGoodwill

OthersFinancial
Institutions& Public
sectorbusiness

3,672

Thousands of U.S. dollars
MHBK (Consolidated)
MHBK (Unconsolidated)
Personalbanking

Retailbanking

For the Fiscal Year ended
March 31, 2015

Amortization of Goodwill $Unamortized Balance of$Goodwill

Amortization of Goodwill
Unamortized Balance ofGoodwill

Corporatebanking(Largecorporations)

Corporatebanking

Financial
Institutions& Public
sectorbusiness

International

OthersTradingandothers

— $

—

$

— $

—

$

—

$

— $

—

$

—

$ 6,528 $ 6,528

— $

—

$

— $

—

$

—

$

— $

—

$

—

$ 87,751 $ 87,751

OthersMHTB(Consolidated)

MHSC(Consolidated)

$

—

$

—

$

$

—

$

—

$ 399,630

24,220MHFG(Consolidated)$

30,748$ 487,381

223

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

8. Information about Gain on Negative Goodwill Incurred by Reportable Segment
For the fiscal years ended March 31, 2015
・There is no applicable information.
Millions of yen
MHBK (Consolidated)
MHBK (Unconsolidated)

For the Fiscal Year
ended March 31,
2014

Gain on
Negative
Goodwill
Incurred

Personalbanking¥

Retailbanking— ¥Corporatebanking(Largecorporations)—¥

Corporatebanking

— ¥

—

MHTB
(Consolidated)

MHSC(Consolidated)

Others¥¥¥Gain on
Negative
Goodwill
Incurred——Financial
Institutions& Public
sectorbusiness¥

International

— ¥
MHFG
(Consolidated)—¥ 5,62145. Related Party
For the fiscal years ended March 31, 2015 and 2014
・There are no material additions to the current scope subject to disclosure.

224

OthersTradingandothers

— ¥

— ¥

—

¥

5,621 ¥

5,621

46. Per Share Information
Per share information as of or for the fiscal years ended March 31, 2015 and 2014 are calculated based on the following
information:
As of or for the fiscal years ended March 31,

2015

Net Assets per Share of Common StockNet Income per Share of Common Stock
Diluted Net Income per Share of Common Stock

Yen

U.S. dollars
2015

2014

¥ 322.86
24.91
24.10

$ 2.680.21
0.20¥ 253.25
28.18
27.12

Notes: 1. Total Net Assets per Share of Common Stock is based on the following information.
Millions of yen
2015

As of March 31,

2014

Thousands of U.S. dollars
2015

Total Net Assets¥ 9,800,538¥ 8,304,549
Deductions from Total Net Assets
1,854,668
2,163,015
Paid-in Amount of Preferred Stock
213,120
312,651
Cash Dividends on Preferred Stock
2,131
3,126
Stock Acquisition Rights
3,820
3,179
Minority Interests
1,635,595
1,844,057
Net Assets (year-end) related to Common
Stock7,945,869
6,141,534
Year-end Outstanding Shares of Common
Stock, based on which Total Net Assets
per Share of Common Stock was
24,250,067 Thousand sharescalculated
24,610,248 Thousand shares$ 81,487,803
15,420,872
1,772,021
17,72031,764
13,599,367
66,066,931/

2. Net Income per Share of Common Stock is based on the following information.
Millions of yen
2015

For the fiscal years ended March 31,

Net Income
Amount not attributable to Common Stock
Cash Dividends on Preferred Stock
Cancellation differences on Dividend
Preferred StockNet Income related to Common Stock
Average Outstanding Shares of Common
Stock (during the period)¥

611,935
4,910
4,910

¥

—
607,025
24,368,115 Thousand shares

2014

Thousands of U.S. dollars
2015

688,415
6,744
6,437

$ 5,088,012
40,82640,826307
681,670—
5,047,186

24,189,669 Thousand shares/

3. Diluted Net Income per Share of Common Stock is based on the following information.
Millions of yen
2015

For the fiscal years ended March 31,

Adjustments to Net Income
Cash Dividends on Preferred Stock
Increased Number of Shares of Common
Stock
Preferred Stock
Stock Acquisition Rights
Description of Dilutive Securities whichwere not included in the Calculation of
Diluted Net Income per Share ofCommon Stock as they have no dilutive
effects

¥

4,910
4,910
1,012,931 Thousand shares
994,744 Thousand shares
18,186 Thousand shares
—

2014

¥

Thousands of U.S. dollars
2015

6,437
6,437
1,181,582 Thousand shares
1,164,941 Thousand shares
16,641 Thousand shares—$

40,82640,826
/
/
/
/

225

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

4. As indicated in “6. Change in Accounting Policies”, Mizuho Financial Group has applied “Accounting Standard
for Retirement Benefits” (ASBJ Statement No. 26, May 17, 2012) (hereinafter, the “Accounting Standard”) and“Guidance on Accounting Standard for Retirement Benefits” (ASBJ Guidance No. 25, March 26, 2015)(hereinafter, the “Guidance”), in terms of regulations stipulated in the text of the Accounting Standard,Paragraph 35 and the Guidance, Paragraph 67, beginning with the fiscal year ended March 31, 2015 and the
Accounting Standard and the Guidance have been applied in accordance with the transitional treatment
stipulated in the Accounting Standard, Paragraph 37.
As a result of this, the impact on Net Assets per Share of Common Stock at the beginning of the fiscal year
ended March 31, 2015, Net Income per Share of Common Stock, and Diluted Net Income per Share ofCommon Stock for the fiscal year ended March 31, 2015 is immaterial.

47. Subsequent Events
Mizuho Financial Group, Inc. decided to redeem in full preferred securities issued by its group’s overseas special purpose
subsidiaries on May 15, 2015, as set forth below.
(1) Issuers(2) Type of securities(3) Total redemption amount(4) Scheduled redemption date(5) Major reasons for the redemption

226

a. Mizuho Capital Investment (JPY) 4 Limitedb. Mizuho Capital Investment (JPY) 5 Limited
Non-cumulative Perpetual Preferred Securitiesa. ¥355,000 million
b. Series B ¥72,500 million, Series C ¥25,000 million
June 30, 2015
Arrival of optional redemption dateNon-Consolidated Financial Statements of Mizuho Financial Group, Inc. andThree Subsidiaries [Under Japanese GAAP]

Mizuho Financial Group, Inc.
Non-Consolidated Balance Sheet

228

Non-Consolidated Statement of Income

229

Mizuho Bank, Ltd.
Non-Consolidated Balance Sheet

230

Non-Consolidated Statement of Income

232

Mizuho Trust & Banking Co., Ltd.
Non-Consolidated Balance Sheet

233

Non-Consolidated Statement of Income

235

Mizuho Securities Co., Ltd.
Non-Consolidated Balance Sheet

236

Non-Consolidated Statement of Income

239

227

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Mizuho Financial Group, Inc.

Non-Consolidated Balance Sheet
Millions of yen
2015

As of March 31,

AssetsCurrent Assets
Cash and Due from Banks
Other Current Assets
Fixed Assets
Tangible Fixed Assets
Intangible Fixed Assets
Investments in Subsidiaries and Affiliates
Other Investments
Total Assets
Liabilities and Net Assets
Liabilities
Current Liabilities
Short-term Borrowings
Short-term Bonds
Other Current Liabilities
Non-Current Liabilities
Total Liabilities
Net Assets
Shareholders' Equity
Common Stock and Preferred Stock
Capital Surplus
Capital Reserve
Other Capital Surplus
Retained Earnings
Appropriated Reserve
Other Retained Earnings
Retained Earnings Brought Forward
Treasury Stock
Valuation and Translation Adjustments
Net Unrealized Gains on Other Securities, net of Taxes
Stock Acquisition Rights
Total Net Assets
Total Liabilities and Net Assets

2014

¥

90,636
12,72977,9076,512,468
166,381
4,269
6,023,428
318,389¥

86,866
17,26969,597
6,164,457
7,655
4,064
6,023,433
129,304$

753,608
105,837
647,771
54,148,732
1,383,398
35,49750,082,551
2,647,286¥

6,603,104¥

6,251,324$

54,902,340¥

1,208,717
700,135
500,000
8,582
298,181¥1,070,361
561,460
500,000
8,901
280,546$

10,050,030
5,821,360
4,157,313
71,3572,479,267¥

1,506,898

1,350,907

12,529,297

5,041,680
2,255,404
1,195,363
1,195,296
66
1,593,924
4,350
1,589,574
1,589,574(3,011)50,70450,704
3,820
5,096,205
6,603,104

4,866,470
2,254,972
1,194,864
1,194,864―
1,419,866
4,350
1,415,516
1,415,516(3,233)30,76630,7663,179
4,900,417
6,251,324

41,919,686
18,752,845
9,938,998
9,938,445
553
13,252,885
36,16913,216,716
13,216,716(25,042)421,593421,593
31,76442,373,043$ 54,902,340¥

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥120.27=US$1.00, the foreign exchange rate on March 31, 2015, has been used for translation.

228

Thousands of
U.S. dollars
2015Non-Consolidated Statement of Income
Millions of yen
2015

For the Fiscal Years ended March 31,

Operating Income
Cash Dividends Received from Subsidiaries and Affiliates
Fee and Commission Income Received from Subsidiaries andAffiliates
Operating Expenses
General and Administrative Expenses
Operating Profits
Non-Operating Income
Non-Operating Expenses
Income before Income Taxes
Income Taxes:
Current
Deferred
Net Income¥¥

377,777
344,668¥

Thousands of
U.S. dollars
2105

2014

316,886
285,129$

3,141,076
2,865,786

33,10926,85426,85431,756
22,591
22,591

275,290
223,285
223,285

350,922
10,150
11,630349,442294,294
12,527
20,332
286,489

2,917,791
84,397
96,701
2,905,487

325
116
349,001

288
339
285,861

2,705
967
2,901,815¥$

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥120.27=US$1.00, the foreign exchange rate on March 31, 2015, has been used for translation.

229

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Mizuho Bank, Ltd.

Non-Consolidated Balance Sheet

Millions of yen
2015

As of March 31,

AssetsCash and Due from Banks¥
Call Loans
Receivables under Resale Agreements
Guarantee Deposits Paid under Securities Borrowing Transactions
Other Debts Purchased
Trading Assets
Money Held in Trust
Securities
Loans and Bills Discounted
Foreign Exchange Assets
Other Assets
Tangible Fixed Assets
Buildings
Land
Lease Assets
Construction in Progress
Other Tangible Fixed Assets
Intangible Fixed Assets
SoftwareLease Assets
Other Intangible Fixed Assets
Prepaid Pension Cost
Deferred Tax Assets
Customers' Liabilities for Acceptances and Guarantees
Reserves for Possible Losses on Loans
Reserve for Possible Losses on Investments
Total Assets

230

25,803,781 ¥
396,839525,653
133,336543,683
5,761,693
3,249
41,235,710
70,873,844
1,559,516
6,798,521
828,583
304,662
423,722
16,711
13,582
69,904
469,546
245,869
7,305
216,371415,694―
6,193,731(434,828)(1)¥ 161,108,555

Thousands of
U.S. dollars
2015

2014

19,218,757
434,458
642,344
388,060
480,372
4,972,189
2,807
42,174,781
66,836,553
1,507,927
4,988,999
834,166
286,062
428,307
16,57534,45568,765344,173
227,409
4,245
112,518
378,416
47,591
5,668,241(510,675)(15)¥ 148,409,149$

214,548,777
3,299,573
4,370,613
1,108,642
4,520,524
47,906,320
27,015
342,859,487
589,289,464
12,966,797
56,527,160
6,889,364
2,533,157
3,523,096
138,952
112,931581,228
3,904,103
2,044,311
60,746
1,799,046
3,456,344―
51,498,555(3,615,435)(10)$ 1,339,557,293

Non-Consolidated Balance Sheetー(Continued)

As of March 31,

Liabilities and Shareholders' Equity
Liabilities
Deposits
Call Money
Payables under Repurchase Agreements
Guarantee Deposits Received under Securities Lending
Transactions
Trading Liabilities
Borrowed Money
Foreign Exchange Liabilities
Short-term Bonds
Bonds and Notes
Other Liabilities
Reserve for Bonus Payments
Reserve for Possible Losses on Sales of Loans
Reserve for Contingencies
Reserve for Reimbursement of Deposits
Reserve for Reimbursement of Debentures
Deferred Tax Liabilities
Deferred Tax Liabilities on Revaluation Reserve for Land
Acceptances and Guarantees
Total Liabilities
Net Assets
Shareholders' Equity
Common Stock and Preferred Stock
Capital Surplus
Capital Reserve
Other Capital Surplus
Retained Earnings
Appropriated Reserve
Other Retained Earnings
Retained Earnings Brought Forward
Valuation and Translation Adjustments
Net Unrealized Gains on Other Securities, net of Taxes
Net Deferred Hedge Gains(Losses), net of Taxes
Revaluation Reserve for Land, net of Taxes
Total Net Assets
Total Liabilities and Net Assets

Millions of yen
2015¥ 108,358,400
3,469,055
10,131,327¥

Thousands of
U.S. dollars
2015

2014

97,903,395
6,058,995
7,656,634$

900,959,511
28,843,897
84,238,197

513,983
4,397,160
8,315,873
625,566
25,0004,624,117
6,647,270
19,93313
1,544
14,772
48,878337,508
72,392
6,193,731

3,159,574
3,144,085
8,968,740
436,106
25,0003,958,105
4,989,613
19,3891,259
215
15,30754,956―
81,0605,668,241

4,273,579
36,560,745
69,143,377
5,201,347
207,866
38,447,805
55,269,566
165,743110
12,845
122,824
406,4072,806,260
601,916
51,498,555

153,796,531

142,140,682

1,278,760,550

5,673,213
1,404,065
2,286,795
655,324
1,631,471
1,982,352
121,296
1,861,055
1,861,055
1,638,811
1,497,419(5,028)146,419
7,312,024¥ 161,108,555

5,531,648
1,404,065
2,286,795
655,324
1,631,471
1,840,787
63,545
1,777,242
1,777,242
736,818
597,410(1,337)140,745
6,268,466¥ 148,409,149

47,170,643
11,674,275
19,013,851
5,448,779
13,565,072
16,482,517
1,008,538
15,473,979
15,473,979
13,626,100
12,450,486(41,810)1,217,424
60,796,743$ 1,339,557,293

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥120.27=US$1.00, the foreign exchange rate on March 31, 2015, has been used for translation.

231

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Mizuho Bank, Ltd.

Non-Consolidated Statement of Income

2014

Thousands of
U.S. dollars
2015¥ 1,258,141
807,368
327,025
471,563
48,535
248,620
211,888¥ 1,096,265
711,695
274,925
384,827
38,994142,975
216,915$ 10,460,977
6,712,966
2,719,096
3,920,872
403,553
2,067,185
1,761,772

Total Income
Expenses
Interest Expenses
Deposits
Fee and Commission Expenses
Trading Expenses
Other Operating Expenses
General and Administrative Expenses
Other Expenses

2,238,748

1,879,97818,614,359

323,247
119,269
88,033―
120,110855,795
183,516

296,160
99,94472,351556
95,688675,728
86,321

2,687,684
991,682
731,966―
998,677
7,115,617
1,525,874

Total Expenses
Income before Income Taxes
Income Taxes:
Current
Deferred

1,570,704
668,044

1,226,806
653,171

13,059,818
5,554,541

209,116
35,74071,924136,019

1,738,722
297,166445,228$ 3,518,653

Millions of yen
2015

For the Fiscal Years ended March 31,

IncomeInterest Income
Loans and Bills Discounted
Securities
Fee and Commission Income
Trading Income
Other Operating Income
Other Income

Net Income¥

423,188¥

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥120.27=US$1.00, the foreign exchange rate on March 31, 2015, has been used for translation.

232

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Mizuho Trust & Banking Co., Ltd.

Non-Consolidated Balance Sheet

As of March 31,

AssetsCash and Due from Banks
Call Loans
Other Debts Purchased
Trading Assets
Money Held in Trust
Securities
Loans and Bills Discounted
Foreign Exchange Assets
Other Assets
Tangible Fixed Assets
Buildings
Land
Other Tangible Fixed Assets
Intangible Fixed Assets
Software
Other Intangible Fixed Assets
Prepaid Pension Cost
Deferred Tax Assets
Customers' Liabilities for Acceptances and Guarantees
Reserves for Possible Losses on Loans
Reserve for Possible Losses on Investments
Total Assets

2014

Thousands of
U.S. dollars
2015¥ 1,457,944
6,852
48,71367,185
3,415
1,887,153
3,068,451
7,088
79,017
26,561
10,541
11,246
4,773
17,624
14,535
3,089
45,785―41,828(6,811)(1)¥ 1,028,662
202,058
57,59160,9181,513
1,837,573
3,137,852
1,580
88,917
26,384
10,56012,762
3,062
14,444
14,278165
42,8036,524
40,151(12,709)(11)$ 12,122,263
56,976
405,034
558,624
28,40015,690,975
25,513,027
58,938657,004
220,851
87,651
93,507
39,693
146,543
120,855
25,688
380,686―
347,787(56,632)(11)¥ 6,750,811¥ 6,534,256$ 56,130,465

Millions of yen
2015

233

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Mizuho Trust & Banking Co., Ltd.

Non-Consolidated Balance Sheetー(Continued)

As of March 31,

Liabilities and Shareholders' Equity
Liabilities
Deposits
Call Money
Payables under Repurchase Agreements
Guarantee Deposits Received under Securities Lending
Transactions
Trading Liabilities
Borrowed Money
Foreign Exchange Liabilities
Bonds and Notes
Due to Trust Accounts
Other Liabilities
Reserve for Bonus Payments
Reserve for Reimbursement of Deposits
Deferred Tax Liabilities
Acceptances and Guarantees
Total Liabilities
Net Assets
Shareholders' Equity
Common Stock and Preferred Stock
Capital Surplus
Capital Reserve
Retained Earnings
Appropriated Reserve
Other Retained Earnings
Retained Earnings Brought Forward
Valuation and Translation Adjustments
Net Unrealized Gains on Other Securities, net of Taxes
Net Deferred Hedge Gains (Losses), net of Taxes
Total Net Assets
Total Liabilities and Net Assets

2014

Thousands of
U.S. dollars
2015¥ 3,216,851
1,072,860
12,022¥ 3,151,242
996,045
10,291$ 26,746,917
8,920,430
99,958436,750
63,242
221,967―
42,2001,008,363
43,236
1,909
1,079
22,342
41,828446,947
61,320168,5628
61,5001,084,938
45,542
2,013
1,144
―
40,151

3,631,415
525,838
1,845,579―
350,877
8,384,165
359,499
15,8798,973
185,772
347,787

6,184,654

6,069,708

51,423,089

431,810247,369
15,505
15,505
168,935
17,471
151,464
151,464
134,345
136,022(1,676)566,156¥ 6,750,811

401,231247,369
15,505
15,505
138,356
12,041
126,315
126,315
63,316
67,616(4,300)464,548¥ 6,534,256

3,590,341
2,056,786
128,920
128,920
1,404,635
145,265
1,259,370
1,259,370
1,117,035
1,130,976(13,941)
4,707,376$ 56,130,465

Millions of yen
2015

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥120.27=US$1.00, the foreign exchange rate on March 31, 2015, has been used for translation.

234

Non-Consolidated Statement of Income

2014

Thousands of
U.S. dollars
2015¥ 51,947
49,68330,524
17,07554,6782,494
18,016
15,902¥ 51,434
52,66433,923
17,33949,524
2,405
9,086
27,930$ 431,922
413,102
253,803
141,976454,635
20,742
149,800
132,222

Total Income
Expenses
Interest Expenses
Deposits
Fee and Commission Expenses
Trading Expenses
Other Operating Expenses
General and Administrative Expenses
Other Expenses

192,723

193,044

1,602,423

10,392
2,596
25,538―6,625
78,4603,791

12,6182,810
25,899116
3,720
76,4186,188

86,407
21,592
212,343―
55,092652,373
31,525

Total Expenses
Income before Income Taxes
Income Taxes:
Current
Deferred

124,808
67,914

124,962
68,082

1,037,740
564,683

5,643
5,027

17,169(1,384)46,92041,802¥ 57,243¥ 52,297$ 475,961

For the Fiscal Years ended March 31,

IncomeFiduciary Income
Interest Income
Loans and Bills Discounted
Securities
Fee and Commission Income
Trading Income
Other Operating Income
Other Income

Net Income

Millions of yen
2015

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥120.27=US$1.00, the foreign exchange rate on March 31, 2015, has been used for translation.

235

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Mizuho Securities Co., Ltd.

Non-Consolidated Balance Sheet
Millions of yen
2015

As of March 31,

AssetsCurrent Assets
Cash and Due from Banks
Cash Segregated as Deposits for Customers and Others
Trading Assets
Trading Securities and Others
Derivatives
Receivables - unsettled Trades
Operating Investment Securities
Operating Loans Receivable
Receivables Related to Margin Transactions
Loans Receivable under Margin Transactions
Cash Collateral for Borrowed Securities under Margin
Transactions
Collateralized Short-term Financing Agreements-receivable
Deposits Paid for Securities Borrowed
Securities Purchased under Agreements to Resell
Advances Paid
Short-term Guarantee Deposits
Securities: Fail to Deliver
Variation Margin Paid
Short-term Loans Receivable
Advance Payments
Prepaid Expenses
Accounts Receivable-otherAccrued income
Deferred Tax Assets
Other Current Assets
Less: Allowance for Doubtful Accounts
Total Current Assets
Noncurrent Assets
Tangible Fixed Assets
Intangible Fixed Assets
Investments and Other Assets
Investment Securities
Long-term Guarantee Deposits
Prepaid Pension Cost
Deferred Tax Assets
Other
Less: Allowance for Doubtful Accounts
Total Noncurrent Assets
Total Assets

236¥

320,613
151,401
4,184,018
2,494,775
1,689,243
580,287
17,516
3,240
74,79450,849¥Thousands of
U.S. dollars
2015

2014

153,502
164,937
5,262,651
4,174,833
1,087,818
82,26718,483
3,598
85,274
69,407$2,665,778
1,258,847
34,788,546
20,743,121
14,045,425
4,824,870
145,643
26,939621,892
422,798

23,945
4,109,246
4,060,231
49,014
189
208,013
25,582
4,826
46,084
600
2,926
4,527
24,167
21,1606,091(12)

15,867
4,926,123
4,789,303
136,820662
108,208
3,843
1,353
59,677
988
2,703
1,669
20,74921,84234(21)

199,094
34,166,848
33,759,307
407,541
1,573
1,729,552
212,70940,127383,172
4,996
24,33737,648200,948
175,939
50,652(106)

9,785,276

10,918,552

81,360,910

15,67834,344
297,869
241,190
12,67012,746
8,297
28,018(5,055)

17,28430,210308,211
230,933
16,843
7,138
18,98638,929(4,619)130,360
285,560
2,476,671
2,005,411
105,353
105,985
68,989232,964(42,031)

347,891355,706¥ 10,133,168¥ 11,274,259

2,892,591$

84,253,501

Non-Consolidated Balance Sheetー(Continued)
Millions of yen
2015

As of March 31,

Liabilities
Current Liabilities
Trading Liabilities
Trading Securities and Others
Derivatives
Payables Related to Margin Transactions
Borrowings on Margin Transactions
Cash Collateral for Loaned Securities under Margin
Transactions
Collateralized Short-term Financing Agreements-payable
Deposits Received for Securities Loaned
Securities Sold under Agreements to Repurchase
Deposits Received
Guarantee Deposits Received
Securities: Fail to Receive
Short-term Borrowings
Commercial Paper
Bonds and Notes Due within One year
Lease Obligations
Advances Received
Accounts Payable-otherAccrued Expenses
Income Taxes Payable
Reserve for Bonus Payments
Provision for Bonus point Redemption
Other Current Liabilities¥

3,909,239
2,294,228
1,615,010
33,922
8,383¥

Thousands of
U.S. dollars
2015

2014

4,209,557
3,216,324
993,232
22,643
6,782$

32,503,863
19,075,652
13,428,211
282,052
69,70325,5393,052,857
1,417,601
1,635,255
160,613110,135
8,685
626,792
456,500
67,220
414
1,363
3,221
24,301
2,549
14,757783
1,524

15,8614,251,865
2,630,804
1,621,061
131,547
70,936
5,352
509,698
290,100
48,353
432
497
2,375
22,533
1,112
12,627695
2,752

212,349
25,383,366
11,786,828
13,596,538
1,335,438
915,732
72,2205,211,546
3,795,627
558,913
3,443
11,334
26,783202,054
21,196
122,7026,512
12,677

Total Current Liabilities
Noncurrent Liabilities
Bonds and Notes
Long-term Borrowings
Lease Obligations
Provision for Retirement Benefits
Other Noncurrent Liabilities

8,474,880

9,583,084

70,465,458

496,002524,000
1,351
16,9522,431

455,877
616,900
1,730
16,094
2,065

4,124,073
4,356,864
11,237140,958
20,216

Total Noncurrent Liabilities
Statutory Reserves
Reserve for Financial Instrument Transaction Liabilities

1,040,738

1,092,668

8,653,348

1,589

1,254

13,215

Total Statutory Reserves
Total Liabilities

¥

1,589

1,254

9,517,208¥ 10,677,007

13,215$

79,132,021

237

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Mizuho Securities Co., Ltd.

Non-Consolidated Balance Sheetー(Continued)
Millions of yen
2015

As of March 31,

Net Assets
Shareholders' Equity
Common Stock
Capital Surplus
Additional Paid in Capital
Other Capital Surplus
Total Capital Surpluses
Retained Earnings
Other Retained Earnings
Retained Earnings Brought Forward
Total Retained Earnings
Total Shareholders’ Equity
Valuation and Translation Adjustments
Net Unrealized Gains on (Operating) Investment Securities, net ofTax
Net Deferred Gains or Losses on Hedges, net of Tax
Total Valuation and Translation Adjustments
Total Net Assets
Total Liabilities and Net Assets¥

125,167¥2014

125,167$

1,040,719

285,831
95,817
381,649

285,831
95,817
381,649

2,376,581
796,691
3,173,272

112,125
112,125
618,941

91,516
91,516598,333

932,277
932,277
5,146,268

24,524(27,505)(2,981)
615,960¥ 10,133,168

16,865(17,946)(1,081)
597,251¥ 11,274,259

203,909(228,697)(24,788)
5,121,480
84,253,501

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥120.27=US$1.00, the foreign exchange rate on March 31, 2015, has been used for translation.

238

Thousands of
U.S. dollars
2015$Non-Consolidated Statement of Income
Millions of yen
2015

For the Fiscal Years ended March 31,

Operating Revenues
Commissions
Brokerage Commissions
Underwriting and Selling Fees, and Commissions from
Solicitation to Qualifying Investors
Offering, Selling, and Other Commissions and Fees, andCommissions from Solicitation to Qualifying Investors
Other commissions and Fees
Net Gain on Trading
Net Gain (loss) on Operating Investment Securities
Interest and Dividend Income
Total Operating Revenues
Interest Expenses
Net Operating Revenues
Selling, General and Administrative Expenses
Transaction-related Expenses
Personnel Expenses
Real Estate Expenses
Administrative Expenses
Depreciation and Amortization
Taxes and Dues
Provision of Allowance for Doubtful Accounts
Other
Operating Income
Non-operating Income
Non-operating Expenses
Ordinary Income
Extraordinary gain
Gain on Sales of Noncurrent Assets
Gain on Sale of Investment Securities
Extraordinary loss
Loss on Disposal of Noncurrent Assets
Loss on Sale of Investment Securities
Loss on Impairment of Investment Securities
Loss on Impairment of Investments in Subsidiaries and Affiliates
Loss on Impairment of Golf Club Membership
Impairment Losses
Merger Expenses
Head office transfer cost
Provision of Reserve for Financial Instruments Transaction
Liabilities
Income before Income Taxes
Income Taxes - current
Income Taxes - deferred
Total Income Taxes
Net Income¥¥

146,782
33,795¥

Thousands of
U.S. dollars
2015

2014

148,149
43,105$1,220,443
280,996

28,62624,470238,021

34,22850,131
117,865
2,680
34,249301,578
26,850274,727
217,63145,15485,94425,63438,685
15,065
3,106
431
3,608
57,0964,720
581
61,235
588
89
499
2,530
386
69
―
―
0
858
―
881

37,13143,442
95,563
1,998
33,373
279,085
26,345
252,739
202,775
41,30682,762
26,95930,04615,023
2,390
126
4,158
49,964
5,148
792
54,320
5,705
―
5,705
5,983
421
417
19
489
7
149
2,115
2,293

284,599
416,827
980,01122,286
284,7732,507,513
223,2542,284,259
1,809,522
375,446714,599
213,143
321,653
125,260
25,831
3,585
30,005474,737
39,250
4,834
509,153
4,892
743
4,149
21,043
3,215
576
―
―
0
7,142
―
7,328

334
59,293
4,485
10,734
15,21944,073

69
54,042
2,169(8,248)(6,078)60,121

2,782
493,00237,29389,255
126,548
366,454¥$

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥120.27=US$1.00, the foreign exchange rate on March 31, 2015, has been used for translation.

239

240

Status of Capital Adequacy

Capital Adequacy Ratio Highlights

242

Status of Mizuho Financial Group's Consolidated
Capital Adequacy

244

Scope of Consolidation

244

Composition of Capital

246

Risk-based Capital

262

Credit Risk

265

Methods for Credit Risk Mitigation

281

Counterparty Risk in Derivatives Transactionsand Long-settlement Transactions

283

Securitization Exposure

285

Market Risk

307

Operational Risk

307

Equity Exposure in Banking Book

307

Composition of Leverage Ratio

310

Indicators for assessing Global Systemically
Important Banks (G-SIBs)

311

Compensation of Directors, Corporate Auditorsand Employees

312

241

Status of Capital Adequacy

Capital Adequacy Ratio Highlights

The Basel Framework, based on the “International Convergence of Capital Measurement and Capital Standards: A
Revised Framework” issued by the Basel Committee on Banking Supervision, requires the disclosure of capital adequacy
information to ensure the enhanced effectiveness of market discipline. Our disclosure is made under the “Matters
Separately Prescribed by the Commissioner of the Financial Services Agency Regarding Capital Adequacy Conditions, etc.
pursuant to Article 19-2, Paragraph 1, Item 5, Subitem (d), etc. of the Ordinance for Enforcement of the Banking Law(Ministry of Finance Ordinance No. 10 of 1982)” (the FSA Notice No. 7 of 2014, etc.).
With respect to the calculation of capital adequacy ratio, we have applied the international standard and adopted (a) theadvanced internal ratings-based approach as a method to calculate the amount of credit risk weighted assets and (b) theadvanced measurement approach as a method to calculate the amount equivalent to the operational risk.

■ Capital adequacy ratio highlights
Mizuho Financial Group (Consolidated)
Total capital ratio(International standard)
Tier 1 capital ratio
Common equity Tier 1 capital ratio
Total capital
Tier 1 capital
Common equity Tier 1 capital
Risk weighted assets(Billions of yen)
As of March 31, 2015

As of March 31, 201414.58%

14.36%

11.50%
9.43%¥9,508.4
7,500.3
6,153.1¥65,191.9

11.35%
8.80%¥8,655.9
6,844.7
5,304.4¥60,274.0

As of March 31, 2015

As of March 31, 201415.30%

15.48%

12.13%
10.42%¥8,753.5
6,943.1
5,965.7¥57,201.8

12.35%
10.19%¥8,180.6
6,525.3
5,386.5¥52,823.7

As of March 31, 2015

As of March 31, 201415.35%

15.58%

12.01%
10.33%¥8,597.5
6,727.5
5,787.3¥55,981.4

12.29%
10.15%¥8,071.7
6,369.6
5,260.2¥51,803.7

As of March 31, 2015

As of March 31, 201419.21%

17.80%

16.68%
16.67%¥511.6444.4
444.1¥2,663.4

14.76%
14.76%¥456.6378.7
378.7¥2,564.6

Mizuho Bank (Consolidated)
Total capital ratio(International standard)
Tier 1 capital ratio
Common equity Tier 1 capital ratio
Total capital
Tier 1 capital
Common equity Tier 1 capital
Risk weighted assets(Billions of yen)Mizuho Bank (Non-Consolidated)
Total capital ratio(International standard)
Tier 1 capital ratio
Common equity Tier 1 capital ratio
Total capital
Tier 1 capital
Common equity Tier 1 capital
Risk weighted assets(Billions of yen)Mizuho Trust & Banking (Consolidated)
Total capital ratio(International standard)
Tier 1 capital ratio
Common equity Tier 1 capital ratio
Total capital
Tier 1 capital
Common equity Tier 1 capital
Risk weighted assets

242(Billions of yen)Mizuho Trust & Banking (Non-consolidated)
Total capital ratio(International standard)
Tier 1 capital ratio
Common equity Tier 1 capital ratio
Total capital
Tier 1 capital
Common equity Tier 1 capital
Risk weighted assets(Billions of yen)
As of March 31, 2015

As of March 31, 201419.33%

17.79%

16.79%
16.79%¥502.8436.7
436.7¥2,600.9

14.76%
14.76%¥451.2374.5
374.5¥2,536.1

243

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy■ Scope of consolidation(1) Scope of consolidation for calculating consolidated capital adequacy ratio(a) Difference from the companies included in the scope of consolidation based on consolidation rules for
preparation of consolidated financial statements (the “scope of accounting consolidation”)
None as of March 31, 2015 and 2014(b) Number of consolidated subsidiaries
As of March 31, 2015

As of March 31, 2014

150

159

Consolidated subsidiaries

Our major consolidated subsidiaries are Mizuho Bank, Ltd., Mizuho Trust & Banking Co., Ltd. and Mizuho Securities Co.,Ltd.
The following table sets forth information with respect to our principal consolidated subsidiaries as of March 31, 2015

Name

Country oforganization

Domestic
Mizuho Bank, Ltd. ............................................Japan
Mizuho Trust & Banking Co., Ltd. ....................Japan
Mizuho Securities Co., Ltd. ..............................Japan
Trust & Custody Services Bank, Ltd. ..............Japan
Mizuho Asset Management Co., Ltd. ..............Japan
Mizuho Research Institute Ltd. ........................Japan
Mizuho Information & Research Institute Inc. ..Japan
Mizuho Financial Strategy Co., Ltd. ................Japan
Mizuho Private Wealth Management Co., Ltd. Japan
Mizuho Credit Guarantee Co., Ltd. .................Japan
Mizuho Factors, Limited ..................................Japan
Shinko Asset Management Co., Ltd. ..............Japan
Mizuho Trust Realty Company Limited ............Japan
Defined Contribution Plan Services Co., Ltd. ...Japan
Mizuho-DL Financial Technology Co., Ltd. .....JapanUC Card Co., Ltd. ...........................................Japan
Mizuho Capital Co., Ltd. ...................................Japan

244

Main businessBanking
Trust and banking
Securities
Trust and banking
Investment
management
Research andconsulting
Information technology
Consulting
Consulting
Credit guarantee
Factoring
Investment
management
Real estate agency
Pension plan-related
business
Application andSophistication of
Financial Technology
Credit card
Venture capital

Proportion ofownership
interest (%)

Proportion of
votinginterest (%)

100.0%
100.0
95.8
54.0
98.7

100.0%
100.0
95.8
54.0
98.7

98.6

98.6

91.5
100.0
100.0
100.0
100.0
94.3

91.5
100.0
100.0
100.0
100.0
94.8

86.7
60.0

76.9
60.0

60.0

60.0

51.0
50.0

51.0
50.0

Name

Country oforganization

Overseas
Mizuho International plc ..................................U.K.
Mizuho Bank (China), Ltd. ...............................China
Mizuho Securities Asia Limited ........................China
Mizuho Bank Nederland N.V. ..........................Netherlands
Mizuho Securities USA Inc. .............................U.S.A.
Mizuho Trust & Banking (Luxembourg) S.A. Luxembourg
Mizuho Bank (USA) ........................................U.S.A.
Mizuho Bank (Switzerland) Ltd .......................Switzerland
Mizuho Trust & Banking Co. (USA) .................U.S.A.
Mizuho Capital Markets Corporation ...............U.S.A.
PT. Bank Mizuho Indonesia ............................Indonesia

Main business

Securities and banking
Banking
Securities
Banking and securities
Securities
Trust and banking
Banking
Trust and banking
Trust and banking
Derivatives
Banking

Proportion ofownership
interest (%)

Proportion of
voting

100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
99.0

100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
99.0

interest (%)(c) Corporations providing financial services for which Article 9 of the FSA Notice No. 20 is applicable
None as of March 31, 2015 and 2014.
(d) Companies that are in the bank holding company’s corporate group but not included in the scope ofaccounting consolidation and companies that are not in the bank holding company’s corporate group but
included in the scope of accounting consolidation
None as of March 31, 2015 and 2014.
(e) Restrictions on transfer of funds or capital within the bank holding company’s corporate group
None as of March 31, 2015 and 2014.
(f) Names of any other financial institutions, etc., classified as subsidiaries or other members of the bank holding
company that are deficient in regulatory capital
None as of March 31, 2015 and 2014.

245

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy■ Composition of capital(2) Composition of capital, etc.
(a) Composition of capital disclosure (International standard)
As of March 31, 2015

(Millions of yen)
As of March 31, 2014

Amounts
excludedundertransitionalarrangements

Basel III
template

Amounts
excludedundertransitionalarrangements

Common equity Tier 1 capital: instruments and reserves (1)1a+2-1c26

Directly issued qualifying common sharecapital plus related stock surplus and retained
earnings¥5,816,601¥/¥5,274,735¥/

1aof which: capital and stock surplus

3,152,290/

3,051,830/

2of which: retained earnings

2,768,510/

2,314,792/

1cof which: treasury stock (-)
of which: national specific regulatory
adjustments (earnings to be distributed) (-)
of which: other than above

3,616

/

3,874

/

100,584/

88,012

/

26

1b
3
5

6

Subscription rights to common shares
Accumulated other comprehensive income andother disclosed reserves
Common share capital issued by subsidiaries
and held by third parties (amount allowed ingroup CET1)
Total of items included in common equity Tier
1 capital: instruments and reserves subject tophase-out arrangementsof which: amount allowed in group CET1
capital subject to phase-out arrangementson common share capital issued bysubsidiaries and held by third parties
Common equity Tier 1 capital:(A)
instruments and reserves

-

/

-

/

3,820

/

3,179

/

811,982

1,217,973

156,219624,876

12,106/

10,867/

49,114/

61,593/

49,114/

61,593/

6,693,624/

5,506,594/

205,759

308,639

85,091

340,365

42,91964,37824,554

98,219

162,840

244,261

60,536242,145

4,559

6,839

5,773

23,092¥10,654¥15,981¥(1,335)¥(5,342)

Common equity Tier 1 capital: regulatory adjustments (2)
8+9
8
9

10

11

246

Total intangible assets (net of related tax
liability, excluding those relating to mortgage
servicing rights)
of which: goodwill (net of related tax
liability, including those equivalent)of which: other intangibles other than
goodwill and mortgage servicing rights (netof related tax liability)
Deferred tax assets that rely on future
profitability excluding those arising from
temporary differences (net of related tax
liability)
Deferred gains or losses on derivatives underhedge accounting

(a) Composition of capital disclosure (Internal standard)-(Continued)
As of March 31, 2015

(Millions of yen)
As of March 31, 2014

Amounts
excludedundertransitionalarrangements

Amounts
excludedundertransitionalarrangements

Basel III
template
12
13
14
15
16
17

18

19+20
+21
19
20
21
22
23
24
25

27
28

Shortfall of eligible provisions to expected
lossesSecuritization gain on sale
Gains and losses due to changes in own credit
risk on fair valued liabilities
Net defined benefit asset
Investments in own shares (excluding thosereported in the net assets section)
Reciprocal cross-holdings in common equity
Investments in the capital of banking, financial
and insurance entities that are outside thescope of regulatory consolidation, net of
eligible short positions, where the bank does
not own more than 10% of the issued sharecapital (amount above the 10% threshold)Amount exceeding the 10% threshold on
specified itemsof which: significant investments in thecommon stock of financialsof which: mortgage servicing rightsof which: deferred tax assets arising from
temporary differences (net of related tax
liability)
Amount exceeding the 15% threshold on
specified itemsof which: significant investments in thecommon stock of financialsof which: mortgage servicing rightsof which: deferred tax assets arising from
temporary differences (net of related tax
liability)
Regulatory adjustments applied to common
equity Tier 1 due to insufficient additional Tier
1 and Tier 2 to cover deductions
Common equity Tier 1 capital:(B)
regulatory adjustments¥16,617¥24,806¥834¥3,065

154

231

658

2,632

456

685

281

1,125

201,673

302,50953,235

212,941

1,948

2,923

616

2,466

-

-

-

-

98,658147,987

57,027228,110

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

/

-

/

540,483/

202,182/¥6,153,141¥/¥5,304,412¥/

Common equity Tier 1 capital (CET1)
29

Common equity Tier 1 capital (CET1)((A)-(B))

(C)

247

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(a) Composition of capital disclosure (Internal standard)-(Continued)
As of March 31, 2015

(Millions of yen)
As of March 31, 2014

Amounts
excludedundertransitionalarrangements

Amounts
excludedundertransitionalarrangements

Basel III
template
Additional Tier 1 capital: instruments (3)
30

31
a

30

31
b

30

32

30

34-35

33+35
33
35

36

Directly issued qualifying additional Tier 1
instruments plus related stock surplus ofwhich: classified as equity under applicableaccounting standards and the breakdown
Subscription rights to additional Tier 1
instruments
Directly issued qualifying additional Tier 1
instruments plus related stock surplus ofwhich: classified as liabilities under applicableaccounting standards
Qualifying additional Tier 1 instruments plus
related stock surplus issued by special
purpose vehicles and other equivalent entities
Additional Tier 1 instruments issued bysubsidiaries and held by third parties (amountallowed in group AT1)
Eligible Tier 1 capital instruments subject tophase-out arrangements included in additional
Tier 1 capital: instrumentsof which: directly issued capital instruments
subject to phase out from additional Tier 1of which: instruments issued bysubsidiaries subject to phase out
Total of items included in additional Tier 1
capital: instruments subject to phase-out
arrangementsof which: foreign currency translation
adjustments
Additional Tier 1 capital: instruments

(D)

¥-

¥/

¥-

¥/

-

/

-

/

-

/

-

/

-

/

-

/

29,598/25,376/

1,458,197/

1,666,511/

1,458,197/

1,666,511

/

-

/

-

/

(24,272)/(50,810)/(24,272)/(50,810)/

1,463,523/

1,641,076

/

-

-

-

-

¥-

¥-

¥-

¥-

Additional Tier 1 capital: regulatory adjustments
37
38

248

Investments in own additional Tier 1
instruments
Reciprocal cross-holdings in additional Tier 1
instruments

(a) Composition of capital disclosure (Internal standard)-(Continued)
As of March 31, 2015

(Millions of yen)
As of March 31, 2014

Amounts
excludedundertransitionalarrangements

Amounts
excludedundertransitionalarrangements

Basel III
template

39

Investments in the capital of banking, financial
and insurance entities that are outside thescope of regulatory consolidation, net of
eligible short positions, where the bank does
not own more than 10% of the issued commonshare capital of the entity (amount above 10%threshold)
Significant investments in the capital ofbanking, financial and insurance entities thatare outside the scope of regulatory
consolidation (net of eligible short positions)
Total of items included in additional Tier 1
capital: regulatory adjustments subject tophase-out arrangements

¥377

¥566

¥327

¥1,31150,30175,451

21,04984,19965,636/79,365/35,170/49,791/

17,771/

25,272

/

231

/

2,632

/

12,462

/

1,668

/

-

/

-

/

116,315/

100,742/(F)

1,347,208/

1,540,334/(G)

7,500,349/

6,844,746/

46

Directly issued qualifying Tier 2 instruments
plus related stock surplus of which: classified
as equity under applicable accounting
standards and the breakdown

-

/

-

/

46

Subscription rights to Tier 2 instruments

¥-

¥/

¥-

¥/

40

of which: goodwill equivalent

42
43

of which: intangible fixed assets recognized
as a result of a mergerof which: capital increase due tosecuritization transactionsof which: 50% of excess of expected losses
relative to eligible reserves by banks
adopting internal ratings-based approach
Regulatory adjustments applied to additional
Tier 1 due to insufficient Tier 2 to coverdeductions
Additional Tier 1 capital: regulatory(E)
adjustments

Additional Tier 1 capital (AT1)44

Additional Tier 1 capital ((D)-(E))

Tier 1 capital (T1 = CET1 + AT1)
45

Tier 1 capital (T1 = CET1 + AT1)((C)+(F))

Tier 2 capital: instruments and provisions (4)249Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(a) Composition of capital disclosure (Internal standard)-(Continued)
As of March 31, 2015

(Millions of yen)
As of March 31, 2014

Amounts
excludedundertransitionalarrangements

Amounts
excludedundertransitionalarrangements

Basel III
template

46

46

48-49

47+49
47
49
50
50a
50b

51

Directly issued qualifying Tier 2 instruments
plus related stock surplus of which: classified
as liabilities under applicable accounting
standards
Tier 2 instruments plus related stock surplus
issued by special purpose vehicles and otherequivalent entities
Tier 2 instruments issued by subsidiaries andheld by third parties (amount allowed in group
Tier 2)
Eligible Tier 2 capital instruments subject tophase-out arrangements included in Tier 2:
instruments and provisionsof which: directly issued capital instruments
subject to phase out from Tier 2of which: instruments issued bysubsidiaries subject to phase out
Total of general allowance for loan losses andeligible provisions included in Tier 2of which: general allowance for loan lossesof which: eligible provisions
Total of items included in Tier 2 capital:
instruments and provisions subject to phaseout arrangementsof which: 45% of unrealized gains on othersecuritiesof which: 45% of revaluation reserve for
land
Tier 2 capital: instruments and(H)provisions¥150,000

¥/

¥-

¥/

180,405/

154,380

/

9,250

/

8,161

/

1,108,804/

1,349,648/

180,405/

146,480/928,399/

1,203,167

/

4,621

/

7,051

/

4,621

/

7,051

/

-

/

-

/

730,789/

474,042/

671,710/394,192/

59,079/79,849/2,183,870/

1,993,284

/

1,680

2,520

4

16

Tier 2 capital: regulatory adjustments

250

52

Investments in own Tier 2 instruments

53

Reciprocal cross-holdings in Tier 2 instruments

-

-

-

-

54

Investments in the capital of banking, financial
and insurance entities that are outside thescope of regulatory consolidation, net of
eligible short positions, where the bank does
not own more than 10% of the issued commonshare capital of the entity (amount above the
10% threshold)¥54,114¥81,171¥41,748¥166,993

(a) Composition of capital disclosure (Internal standard)-(Continued)
As of March 31, 2015

(Millions of yen)
As of March 31, 2014

Amounts
excludedundertransitionalarrangements

Amounts
excludedundertransitionalarrangements

Basel III
template

55

Significant investments in the capital banking,financial and insurance entities that are outside
the scope of regulatory consolidation (net of
eligible short positions)

¥-

¥-

¥-

¥-

119,954/

140,287/

107,491/

138,618/

12,462

/

1,668

/

(I)

175,748/

182,040/(J)

2,008,122/

1,811,244/(K)

9,508,471/

8,655,990/

Total of items included in risk weighted assets
subject to phase-out arrangements

858,200/

979,439/of which: intangible assets (net of related
tax liability, excluding those relating tomortgage service rights)

226,489/

216,873/of which: deferred tax assets that rely on
future profitability excluding those arisingfrom temporary differences (net of related
tax liability)

6,839

/

23,092/of which: net defined benefit asset

302,509/

212,941/of which: investments in the capitalbanking, financial and insurance entities

322,361/

526,532/¥65,191,951¥/¥60,274,087

¥/

9.43%

/

8.80%

/

Total of items included in Tier 2 capital:
regulatory adjustments subject to phase-out
arrangementsof which: investments in the capitalbanking, financial and insurance entitiesof which: 50% of excess of expected losses
relative to eligible reserves by banks
adopting internal ratings-based approach
57

Tier 2 capital: regulatory adjustments

Tier 2 capital (T2)58

Tier 2 capital (T2) ((H)-(I))

Total capital (TC = T1 + T2)
59

Total capital (TC = T1 + T2) ((G) + (J))

Risk weighted assets (5)60

Risk weighted assets(L)

Capital ratio (consolidated)
61

Common equity Tier 1 capital ratio(consolidated) ((C)/(L))

251

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(a) Composition of capital disclosure (Internal standard)-(Continued)
As of March 31, 2015

(Millions of yen)
As of March 31, 2014

Amounts
excludedundertransitionalarrangements

Amounts
excludedundertransitionalarrangements

Basel III
template
62

Tier 1 capital ratio (consolidated) ((G)/(L))

11.50%/

11.35%/

63

Total capital ratio (consolidated) ((K)/(L))

14.58%/

14.36%/

Regulatory adjustments (6)72Non-significant investments in the capital ofother financials that are below the thresholds
for deduction (before risk weighting)¥675,780¥/¥534,399¥/

73

Significant investments in the common stock offinancials that are below the thresholds fordeduction (before risk weighting)

150,800/

145,996/74

Mortgage servicing rights that are below thethresholds for deduction (before risk weighting)

-

/

-

/

75

Deferred tax assets arising from temporary
differences that are below the thresholds fordeduction (before risk weighting)

75,937/302,251/

Provisions included in Tier 2 capital: instruments and provisions (7)76Provisions (general allowance for loan losses)

4,621

/

7,051

/

77

Cap on inclusion of provisions (generalallowance for loan losses)

45,586/57,825/78

Provisions eligible for inclusion in Tier 2 inrespect of exposures subject to internalratings-based approach (prior to application ofcap) (if the amount is negative, report as "nil")

-

/

-

/

79

Cap for inclusion of provisions in Tier 2 underinternal ratings-based approach

310,879/

280,561/

1,458,197/

1,666,511/

257,085/

364,873/

1,180,942/

1,349,648

/

¥-

¥/

¥81,139¥/

Capital instruments subject to phase-out arrangements (8)

252

82

Current cap on T1 instruments subject tophase-out arrangements

83

Amount excluded from AT1 due to cap (excess
over cap after redemptions and maturities) (ifthe amount is negative, report as "nil")

84

Current cap on T2 instruments subject tophase-out arrangements

85

Amount excluded from T2 due to cap (excess
over cap after redemptions and maturities) (ifthe amount is negative, report as "nil")Notes:1. The above figures are calculated based on International standard applied on a consolidated basis under the FSA Notice No. 20.
2. In calculating the consolidated capital adequacy ratio, we underwent an examination following the procedures agreed with Ernst & Young ShinNihon LLC, on thebasis of “Treatment in implementing examination by agreed-upon procedures for calculating capital adequacy ratio” (Industry Committee Practical Guideline No. 30 of
the Japanese Institute of Certified Public Accountants). Note that this is not a part of the accounting audit performed on our consolidated financial statements. Thisconsists of an examination under agreed-upon procedures performed by Ernst & Young ShinNihon LLC on a portion of the internal control structure concerning the
calculation of the capital adequacy ratio and a report of the results to us. As such, they do not represent an opinion regarding the capital adequacy ratio itself nor theinternal controls related to the calculation of the capital adequacy ratio.

253

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(b) Explanation of (a) Composition of capital disclosure
Reconciliation between "Consolidated balance sheet" and items of consolidated balance sheet and “Composition of capital
disclosure”(Millions of yen)

Items

(Assets)
Cash and due from banks
Call loans and bills purchased
Receivables under resaleagreements
Guarantee deposits paid under
securities borrowing transactions
Other debt purchased
Trading assets
Money held in trust
Securities
Loans and bills discounted
Foreign exchange assets
Derivatives other than for trading
assetsOther assets
Tangible fixed assets
Intangible fixed assets
Net defined benefit asset
Deferred tax assets
Customers' liabilities for
acceptances and guarantees
Reserves for possible losses on
loans
Reserve for possible losses oninvestments
Total assets(Liabilities)
Deposits
Negotiable certificates of deposit
Call money and bills soldPayables under repurchaseagreements
Guarantee deposits received under
securities lending transactions
Commercial paper
Trading liabilities
Borrowed money
Foreign exchange liabilities
Short-term bonds
Bonds and notes

254

Consolidated balance sheet as in publishedfinancial statements

Cross-reference
to Appended
template

As of March 31, 2015

As of March 31, 2014

¥29,096,166
444,115¥20,610,276
467,758

8,582,239

8,349,528

4,059,340

5,010,740

3,239,831
10,781,735
157,728
43,278,733
73,415,170
1,623,736

3,263,057
11,469,811
168,369
43,997,517
69,301,405
1,576,167

3,544,243

2,820,468

6-d

4,066,424
1,078,051
657,556
743,382
36,9382,840,720
925,266
531,501
413,073
104,9096-e

5,404,843

4,588,646(525,486)(616,307)

(2)

(27)

¥189,684,749¥175,822,885¥97,757,545
15,694,906
5,091,198¥89,055,505
12,755,776
7,194,432

19,612,120

16,797,803

2,245,639

6,085,331

538,511
8,743,196
7,195,869
473,060
816,705
6,013,731

677,459
8,183,037
7,838,357
323,327584,568
5,245,743

6-a2-b, 6-b
6-c

2-a
3
4-a

6-f
8-a

8-b

Reference # ofBasel III template
under theComposition ofcapital disclosure

(b) Explanation of (a) Composition of capital disclosure-(Continued)(Millions of yen)
Consolidated balance sheet as in publishedfinancial statements

Items

Due to trust accounts
Derivatives other than for trading
liabilities
Other liabilities
Reserve for bonus payments
Net defined benefit liability
Reserve for director and corporate
auditor retirement benefits
Reserve for possible losses onsales of loans
Reserve for contingencies
Reserve for reimbursement ofdeposits
Reserve for reimbursement ofdebentures
Reserves under special laws
Deferred tax liabilities
Deferred tax liabilities forrevaluation reserve for land
Acceptances and guarantees
Total liabilities(Net assets)
Common stock and preferred stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Net unrealized gains (losses) onother securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation
adjustment
Remeasurements of defined benefit
plans
Total accumulated othercomprehensive income
Stock acquisition rights
Minority interests
Total net assets
Total liabilities and net assets
Note:

Cross-reference
to Appended
template

As of March 31, 2015

As of March 31, 2014

1,780,768

1,300,655

3,474,332

3,004,497

4,261,955
59,86947,5183,570,902
52,64146,006

1,527

1,547

13

1,259

7,845

6,309

15,851

16,451

48,87854,956

1,607
524,321

1,273
50,7834-b

72,392

81,0604-c5,404,843¥179,884,211

4,588,646¥167,518,336

2,255,404
1,110,006
2,769,371(3,616)¥6,131,166

2,254,972
1,109,508
2,315,608(3,874)¥5,676,215

1,737,348

733,522

26,635
146,419(6,677)140,745(40,454)(63,513)160,005(22,979)¥2,029,955¥781,096

3,820
1,635,595¥9,800,538¥189,684,749

3,179
1,844,057¥8,304,549¥175,822,885

Reference # ofBasel III template
under theComposition ofcapital disclosure

6-g

1-a
1-b
1-c
1-d

5

3
7

1b

The regulatory scope of consolidation is the same as the accounting scope of consolidation.

255

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

Appended template
1. Shareholders' equity(1) Consolidated balance sheet(Millions of yen)

Ref.

Consolidated balance sheet items

As of March
31, 2015

As of March 31,
2014

1-a

Common stock and preferred stock¥2,255,404¥2,254,972

1-bCapital surplus

1,110,006

1,109,508

1-c1-dRetained earnings
Treasury stock
Total shareholders' equity

2,769,371(3,616)¥6,131,166

2,315,608(3,874)¥5,676,215

As of March
31, 2015

As of March 31,
2014(2) Composition of capitalBasel III
template

1a
2
1c

31a

256

Composition of capital disclosure

Including eligible Tier 1 capital
instruments subject to phaseout arrangements
Including eligible Tier 1 capital
instruments subject to phaseout arrangements(Millions of yen)

Directly issued qualifying commonshare capital plus related stock surplus
and retained earnings¥5,917,185¥5,362,748

of which: capital and stock surplusof which: retained earningsof which: treasury stock (-)
of which: other than above

3,152,290
2,768,510
3,616-

3,051,830
2,314,792
3,874-

Directly issued qualifying additional
Tier 1 instruments plus related stock
surplus of which: classified as equity
under applicable accounting standards
and the breakdown

Remarks--

Remarks

Shareholders' equity
attributable to common shares(before adjusting national
specific regulatory adjustments(earnings to be distributed))

Shareholders' equity
attributable to preferred shareswith a loss absorbency clauseupon entering into effectively
bankruptcy

2. Intangible fixed assets(1) Consolidated balance sheet(Millions of yen)

Ref.

Consolidated balance sheet items

As of March
31, 2015

As of March 31,
2014

2-a
2-b

Intangible fixed assets
Securities¥657,556
43,278,733¥531,501
43,997,517

48,68060,535¥ (191,837)¥ (166,580)

Composition of capital disclosure

As of March
31, 2015

As of March 31,
2014

8

Goodwill (net of related tax liability,
including those equivalent)¥107,297¥122,774

9

Other intangibles other than goodwill
and mortgage servicing rights (net of
related tax liability)

407,101

302,681

-

-

-

-

-

-

-

-

Consolidated balance sheet items

As of March
31, 2015

As of March 31,
2014

Net defined benefit asset¥743,382¥413,073¥ (239,199)¥ (146,897)

Composition of capital disclosure

As of March
31, 2015

As of March 31,
2014

Net defined benefit asset¥504,183¥266,176of which: share of goodwill ofcompanies accounted for using theequity method
Income taxes related to above(2) Composition of capitalBasel III
template

20
24
74

Mortgage servicing rights (net of
related tax liability)
Amount exceeding the 10%threshold on specified items
Amount exceeding the 15%threshold on specified items
Mortgage servicing rights that are
below the thresholds for deduction(before risk weighting)3

Income taxes related to above

15

Remarks

Software and other(Millions of yen)

(2) Composition of capitalBasel III
template

Share of goodwill of companies
accounted for using the equity
method(Millions of yen)

3. Net defined benefit asset(1) Consolidated balance sheet
Ref.

Remarks

Remarks(Millions of yen)
Remarks

257

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

4. Deferred tax assets(1) Consolidated balance sheet
As of March
31, 2015

As of March 31,
2014

Deferred tax assets
Deferred tax liabilities
Deferred tax liabilities for revaluation
reserve for land

¥36,938
524,321¥104,909
50,78372,392

81,060Tax effects on intangible fixed assets
Tax effects on net defined benefit asset¥191,837
239,199¥166,580
146,897

As of March
31, 2015

As of March 31,
2014

Ref.

Consolidated balance sheet items

4-a
4-b
4-c

(Millions of yen)

(2) Composition of capitalBasel III
template

10

Composition of capital disclosure

Deferred tax assets that rely on future
profitability excluding those arising from
temporary differences (net of related
tax liability)
Deferred tax assets that rely on future
profitability arising from temporary
differences (net of related tax liability)

21
25

75

258

Amount exceeding the 10%threshold on specified items
Amount exceeding the 15%threshold on specified items
Deferred tax assets arising from
temporary differences that are
below the thresholds for deduction(before risk weighting)Remarks(Millions of yen)
Remarks¥28,865

This item does not agree withthe amount reported on the
consolidated balance sheet
due to offsetting of assets andliabilities.

75,937302,251

This item does not agree withthe amount reported on the
consolidated balance sheet
due to offsetting of assets andliabilities.

-

-

-

-

75,937302,251¥11,399

5. Deferred gains or losses on derivatives under hedge accounting(1) Consolidated balance sheet
Ref.

5

Consolidated balance sheet items

Deferred gains or losses on hedges

As of March
31, 2015

As of March 31,
2014¥26,635¥ (6,677)(2) Composition of capitalBasel III
template

11

Composition of capital disclosure

Deferred gains or losses on derivatives
under hedge accounting(Millions of yen)
Remarks(Millions of yen)
As of March
31, 2015

As of March 31,
2014¥26,635¥ (6,677)

Remarks

6. Items associated with investments in the capital of financial institutions(Millions of yen)
(1) Consolidated balance sheet
As of March
31, 2015

As of March 31,
2014

Remarks

Trading assets¥10,781,735¥11,469,811

43,278,733
73,415,170

43,997,517
69,301,405

3,544,243

2,820,468

6-eSecurities
Loans and bills discounted
Derivatives other than for trading
assetsOther assets

Including trading accountsecurities and derivatives for
trading assets

4,066,424

2,840,720

6-fTrading liabilities

8,743,196

8,183,037

6-g

Derivatives other than for trading
liabilities

3,474,332

3,004,497

Ref.

Consolidated balance sheet items

6-a
6-b
6-c
6-d

Including subordinated loans

Including money invested
Including trading accountsecurities sold259

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(2) Composition of capitalBasel III
template

16
37
52

17
38
53

Composition of capital disclosure

Investments in own capital instruments
Common equity Tier 1 capital
Additional Tier 1 capital
Tier 2 capital
Reciprocal cross-holdings in the capitalof banking, financial and insurance
entities
Common equity Tier 1 capital
Additional Tier 1 capital
Tier 2 capital
Investments in the capital of banking,financial and insurance entities that areoutside the scope of regulatory
consolidation, net of eligible shortpositions, where the bank does not
own more than 10% of the issued
share capital (amount above 10%threshold)

18
39
54
72

Common equity Tier 1 capital
Additional Tier 1 capital
Tier 2 capitalNon-significant investments in thecapital of other financials that are
below the thresholds for deduction(before risk weighting)Significant investments in the capital ofbanking, financial and insurance
entities that are outside the scope of
regulatory consolidation, net of eligible
short positions

19
23
40
55
73

260

Amount exceeding the 10%threshold on specified items
Amount exceeding the 15%threshold on specified items
Additional Tier 1 capital
Tier 2 capitalSignificant investments in thecommon stock of financials that are
below the thresholds for deduction(before risk weighting)(Millions of yen)

As of March
31, 2015

As of March 31,
2014¥9,072
4,872
4,200¥3,103
3,083
20

-

-

-

-

1,058,656

1,029,919

246,646943
135,285

285,138
1,638
208,742

675,780

534,399

276,553

251,246

-

-

-

-

125,753-

105,249-

150,800

145,996

Remarks

7. Minority interests(1) Consolidated balance sheet
Ref.

7(Millions of yen)

Consolidated balance sheet items

As of March
31, 2015

As of March 31,
2014

Minority interests¥1,635,595¥1,844,057(2) Composition of capitalBasel III
template

Remarks(Millions of yen)
As of March
31, 2015

As of March 31,
2014¥12,106¥10,867

After reflecting amounts
eligible for inclusion (minority
interest after adjustments)

30-31ab-32

Qualifying additional Tier 1 instruments
plus related stock surplus issued by
special purpose vehicles and otherequivalent entities--

After reflecting amounts
eligible for inclusion (minority
interest after adjustments)

34-35

Additional Tier 1 instruments issued bysubsidiaries and held by third parties(amount allowed in group AT1)

29,59825,376After reflecting amounts
eligible for inclusion (minority
interest after adjustments)

46

Tier 2 instruments plus related stock
surplus issued by special purpose
vehicles and other equivalent entities

180,405

154,380

After reflecting amounts
eligible for inclusion (minority
interest after adjustments)

48-49

Tier 2 instruments issued bysubsidiaries and held by third parties(amount allowed in group Tier 2)

9,250

8,161

After reflecting amounts
eligible for inclusion (minority
interest after adjustments)

As of March
31, 2015

As of March 31,
2014¥7,195,869¥7,838,357

6,013,731¥13,209,601¥13,084,101

5Composition of capital disclosure

Common share capital issued bysubsidiaries and held by third parties(amount allowed in group CET1)

8. Other capital instruments(1) Consolidated balance sheet
Ref.

Consolidated balance sheet items

8-a
8-b

Borrowed money
Bonds and notes
Total

Remarks(Millions of yen)
Remarks

5,245,743

261

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(2) Composition of capitalBasel III
template(Millions of yen)
As of March
31, 2015

As of March 31,
2014

32

Directly issued qualifying additional
Tier 1 instruments plus related stock
surplus of which: classified as liabilities
under applicable accounting standards

¥-

¥-

46

Directly issued qualifying Tier 2
instruments plus related stock surplusof which: classified as liabilities underapplicable accounting standards

150,000-

Note:

Composition of capital disclosure

Remarks

Amounts in the "Composition of capital disclosure" are based on those before considering amounts under transitional arrangements and include "Amounts excluded
under transitional arrangements" disclosed in "(A) Composition of capital disclosure" as well as amounts included as regulatory capital. In addition, items for regulatory
purposes under transitional arrangements are excluded from this table.

■Risk-based capital(3) Summary of approach to assessing capital adequacy
In order to ensure that risk-based capital is sufficiently maintained in light of the risk held by us, we regularly conduct thefollowing assessment of capital adequacy in addition to adopting a suitable and effective capital adequacy monitoring
structure.
Maintaining a sufficient BIS capital ratio
We confirm our maintenance of a high level of financial soundness by conducting regular evaluations to examine whether
our risk-based capital is adequate in qualitative as well as quantitative terms, in light of our business plans and strategic
targets to match the increase in risk-weighted assets acquired for growth, in addition to maintaining common equity Tier 1
capital ratio, Tier 1 capital ratio and total capital ratio that exceed the minimum requirements.
Balancing risk and capitalOn the basis of the framework for allocating risk capital, after obtaining the clearest possible grasp of the group’s overallrisk exposure, we endeavor to control risk so as to keep it within the range of our business capacity by means of allocating
capital that corresponds to the amount of risk to the business groups and units of our banking subsidiaries, etc., within thebounds of our capital, and we conduct regular assessments to ensure that a sufficient level of capital is maintained for ourrisk profile. When making these assessments, we estimate the impact of the stress on our capital from risk scenarios thatare formulated based on external environment, risks inherent to our business portfolio, etc. and from scenarios such as theoccurrence of historical stress events. In addition, we examine whether an appropriate return on risk is maintained in theassessments.

262

(4) Required capital by portfolio classification(Billions of yen)
As of March 31, 2014

As of March 31, 2015

Credit risk
Internal ratings-based approach
Corporate (except specialized
lending)
Corporate (specialized lending)
SovereignBank
RetailResidential mortgage
Qualifying revolving loan
Other retail
Equities
PD/LGD approach
Market-based approach (simple
risk weight method)
Market-based approach (internal
models approach)Transitional measure applied
Regarded-method exposure
Purchase receivables
Securitizations
OthersStandardized approach
Sovereign
Bank
Corporate
Residential mortgage
Securitizations
Others
CVA risk
Central counterparty-relatedMarket risk
Standardized approach
Interest rate risk
Equities risk
Foreign exchange risk
Commodities risk
Option transactions
Internal models approach
Operational risk
Advanced measurement approach
Basic indicator approach
Total required capital (consolidated)
Notes

EAD

Required capital

EAD

Required capital¥195,982.4
188,787.2¥5,456.6
4,926.2¥180,860.3
173,716.9¥5,114.7
4,530.0

68,175.7

2,434.9

59,100.4

2,360.0

3,574.5
77,681.9
7,239.8
13,346.9
10,173.4
499.0
2,674.4
5,628.1
4,831.4

323.9
92.8
155.8
546.0
344.5
38.1
163.3
695.3
489.4

2,977.2
77,644.8
6,511.3
13,531.9
10,366.2
434.7
2,730.9
4,299.9
1,199.5

258.1
82.2
148.5
587.7
380.4
35.0
172.2
485.9
131.1

796.7

205.9

490.7

129.0

-

-

-

-

/
2,073.3
5,111.1
3,340.6
2,614.8
7,195.2
2,881.6
1,274.6
2,447.9
21.9
569.0
/
/
/
/
/
/
/
/
/
/
/
/
/
¥/

/
382.1
140.1
24.0
130.9
279.0
7.8
25.0
183.7
9.5
52.8
220.4
31.0
277.9
78.8
42.3
22.9
10.3
3.1
199.0
249.2
210.4
38.8
¥5,215.3

2,609.6
1,761.0
1,935.4
3,038.7
2,916.0
7,143.4
1,505.0
1,527.7
3,619.6
20.6
470.4
/
/
/
/
/
/
/
/
/
/
/
/
/
¥/

225.7
344.2
60.0
46.6
156.2
370.0
6.0
38.9
272.4
9.9
42.7
195.8
18.7
233.5
62.8
39.9
13.5
8.4
0.9
170.6
262.9
230.9
31.9
¥4,821.9

1. EAD: Exposure at default.
2. PD: Probability of default.
3. LGD: Loss given default.
4. Required capital: For credit risk, the sum of (i) 8% of credit risk-weighted assets and (ii) expected losses. For market risk, the market risk equivalent amount. For
operational risk, the operational risk equivalent amount.
5. Total required capital (consolidated): 8% of the denominator of the capital adequacy ratio.
6. The major exposures included in each portfolio classification of internal ratings-based approach are as follows:263

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

Corporate (excluding
specialized lending)Credits to corporations and sole proprietors (excluding credits to retail customers)

Corporate (specialized
lending)

Credits which limit interest and principal repayment sources to cash flow derived from specific real estate, chattel, businesses, etc,
including real estate non-recourse loan, ship finance and project finance, etc.

SovereignCredits to central governments, central banks and local governmental entities

Bank

Credits to banks and securities companies, etc.

RetailHousing loans (residential mortgage), credit card loans (qualifying revolving retail loan) and other individual consumer loans andloans to business enterprises with total credit amount of less than ¥100 million, etc. (other retail).

Equities

Capital stock, preferred securities, perpetual subordinated debt, etc. (excluding trading assets)
The transitional measure (Article 13 of supplementary provision of the FSA Notice No. 20) applies to those held from September 30,
2004 or earlier in the fiscal year ended March 31, 2014. Either the PD/LGD approach or the market-based approach applies in thefiscal year ended March 31, 2015 as the transitional period ended.

Regarded-method exposure

Investment trusts and funds, etc.

Purchase receivables

Receivables purchased from third parties excluding securities (excluding securitizations)

Securitizations

Transactions in the form of “non-recourse” and having a “senior/subordinated structure,” etc. (excluding specialized lending).

7. EAD calculated using the standardized approach for credit risk represents the amount before the deduction of specific reserve for possible losses on loans, reserve forpossible losses on loans to restructuring countries and partial direct write-offs.

264

■ Credit risk
(5) Credit risk management○ Summary of credit risk management
See pages 97 to 100 for a summary of our credit risk management policies and procedures.

We apply the advanced internal ratings-based approach to calculate credit risk-weighted assets under
Basel Framework. With regard to some business units or asset classes that are deemed to be immaterial
for purposes of calculating credit risk-weighted assets, we apply the standardized approach. Meanwhile,
we have applied the advanced internal ratings-based approach to Mizuho Bank Nederland N.V. since theend of March 2015. We use our estimates of PD (probability of default) and LGD (loss given default) in
calculating credit risk-weighted assets. In accordance with regulations, we estimate PD by using long-term
averages of actual defaults, to which conservative adjustments are made, based on internal data, andmake adjustments to LGD taking into account recessionary periods. We regularly perform verifications of
PD and LGD through back testing and other methods. We also utilize these estimates for measuring credit
risks for internal use, allocating risk capital and other purposes.
○ Status of portfolios to which the standardized approach is applied
Eligible external credit assessment institutions used for determining the risk weight for portfolios to which thestandardized approach is applied are Rating and Investment Information, Inc. (R&I) in Japan and Standard & Poor’s
Ratings Services (S&P) overseas.
We apply a risk weight of 100% for all of our corporate exposure.
○ Summary of our internal rating system
See pages 98 to 99 for a summary of our internal rating system and rating assignment procedures.

265

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(6) Credit risk exposure, etc.
We exclude regarded-method exposure and securitization exposure from the amount of credit risk exposure.
The outstanding balance is based on exposure at default.
No significant difference exists between period-end credit risk position and the average credit risk position during the fiscal
years ended March 31, 2014 and 2015.
○ Status of credit risk exposure(a) Breakdown by geographical area
(Billions of yen)
As of March 31, 2015

Domestic
Overseas
Asia
Central andSouth America
North America
Eastern Europe
WesternEuropeOther areas
Total
Exempt portion

Loans,
commitments andother nonderivative offbalance-sheet
exposures

Securities

Derivatives

OthersTotal¥69,662.6
37,120.2
9,175.5¥28,131.5
11,831.1
2,076.8¥1,130.5
2,545.7
319.9¥25,941.1
7,010.2
1,764.3¥124,865.8
58,507.3
13,336.8

3,157.2

162.9

141.2

578.4

4,039.9

15,445.9394.9

7,256.7
-

629.6
1.3

3,967.6
15.3

27,299.9411.6

5,620.9

1,825.4

1,267.6464.3

9,178.3

3,325.5¥106,782.8/

509.1¥39,962.7/

185.7¥3,676.2/

220.0¥32,951.3/

4,240.6¥183,373.2
7,173.2(Billions of yen)

As of March 31, 2014

Domestic
Overseas
Asia
Central andSouth America
North America
Eastern Europe
Western Europe
Other areas
Total
Exempt portion
Notes:

266

Loans,
commitments andother nonderivative offbalance-sheet
exposures

Securities

Derivatives

OthersTotal¥74,327.0
24,724.6
7,108.6¥31,575.7
9,530.9
1,697.0¥1,062.4
1,996.2
211.9¥20,235.8
5,464.1
1,662.1¥127,201.0
41,716.0
10,679.8

2,460.0

133.0

136.1

633.5

3,362.9

8,839.9
33.8
4,004.3
2,277.8¥99,051.6/

5,120.9
2,244.9335.0¥41,106.7
/

503.5
0.3
1,015.9
128.4¥3,058.7/

2,648.2
9.0
336.4
174.5
¥25,699.9/

17,112.5
43.2
7,601.6
2,915.8¥168,917.1
7,122.7

1. Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans to restructuring
countries and partial direct write-offs, calculated using the standardized approach for business units and asset classes that are immaterial for the purpose of
calculating credit risk-weighted assets.
2. Exposure to non-Japanese residents is included in “Overseas.”
3. “Others” include cash, deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.

(b) Breakdown by industry(Billions of yen)
As of March 31, 2015

Manufacturing
Construction
Real estate
Service industries
Wholesale and retail
Finance and insurance
Individuals
Other industries
Japanese Government;
Bank of Japan
Total
Exempt portion

Loans,
commitments andother nonderivative offbalance-sheet
exposures

Securities

Derivatives

OthersTotal¥19,834.1
1,470.3
7,799.4
4,625.9
9,008.8
13,070.3
11,949.5
25,245.1¥2,653.2
194.8
592.5
459.4
745.4
3,578.9
10,133.2¥511.1
14.2
63.0
78.9
113.9
2,007.5
0.2
882.7¥672.0
61.6
14.9
46.6
1,089.7
2,042.5
10.6
8,035.2¥23,670.5
1,741.0
8,469.9
5,210.8
10,958.1
20,699.4
11,960.3
44,296.3

13,779.1

21,605.0

4.3

20,977.8

56,366.4¥106,782.8/¥39,962.7/¥3,676.2/¥32,951.3/¥183,373.2
7,173.2(Billions of yen)

As of March 31, 2014

Manufacturing
Construction
Real estate
Service industries
Wholesale and retail
Finance and insurance
Individuals
Other industries
Japanese Government;
Bank of Japan
Total
Exempt portion
Notes:

Loans,
commitments andother nonderivative offbalance-sheet
exposures

Securities

Derivatives

OthersTotal¥15,958.4
1,327.2
7,191.9
3,841.7
7,838.4
11,293.9
12,004.9
19,534.6¥2,229.5
163.0
503.8
398.9
676.6
2,567.1
8,647.9¥299.6
7.8
56.8
73.0
137.8
1859.80.2
617.4¥683.3
45.4
17.4
45.3
1,080.1
1,857.7
11.3
7,013.7¥19,170.9
1,543.4
7,770.1
4,358.9
9,733.0
17,578.8
12,016.5
35,813.7

20,060.3

25,919.4

6.0

14,945.4

60,931.3¥99,051.6/¥41,106.7/¥3,058.7/¥25,699.9/¥168,917.1
7,122.7

1. Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans to
restructuring countries and partial direct write-offs, calculated using the standardized approach for business units and asset classes that are immaterial forthe purpose of calculating credit risk-weighted assets.
2. “Others” include cash, deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.

267

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(c) Breakdown by residual contractual maturity(Billions of yen)
As of March 31, 2015

Less than one year
From one year to lessthan three years
From three years toless than five years
Five years or more
Other than above
Total
Exempt portion

Loans, commitments
and other non- derivative
off-balance-sheet
exposures

Securities

Derivatives

OthersTotal¥30,032.6¥6,663.3¥723.6¥5,310.1¥42,729.7

18,221.8

10,934.4

1,645.7604.0

31,406.1

19,111.8

9,387.3

473.1

21.9

28,994.2

26,942.5
12,474.0¥106,782.8/

7,529.5
5,448.0¥39,962.7/

833.7¥3,676.2/

5.8
27,009.4¥32,951.3/

35,311.6
44,931.4¥183,373.2
7,173.2(Billions of yen)

As of March 31, 2014

Less than one year
From one year to lessthan three years
From three years toless than five years
Five years or more
Other than above
Total
Exempt portion
Notes:

1.

2.

268

Loans, commitments
and other non- derivative
off-balance-sheet
exposures

Securities

Derivatives

OthersTotal¥29,175.7¥8,360.1¥455.7¥4,813.1¥42,804.8

14,691.3

11,291.2

1,448.3

537.8

27,968.7

14,945.4

10,846.7

553.2

18.8

26,364.3

24,670.2
15,568.8¥99,051.6/

6,308.2
4,300.3¥41,106.7/

601.3¥3,058.7/

8.6
20,321.4¥25,699.9/

31,588.4
40,190.7¥168,917.1
7,122.7

Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans to restructuring
countries and partial direct write-offs, calculated using the standardized approach for business units and asset classes that are immaterial for the purpose of
calculating credit risk-weighted assets.
“Others” include cash, deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.

○ Status of exposure past due three months or more or in default(d) Breakdown by geographical area

(Billions of yen)
As of March 31, 2015

Domestic
Overseas
Asia
Central and SouthAmerica
North America
Eastern Europe
Western Europe
Other areas
Total
Exempt portion
Notes:

Loans, commitments
and other nonderivative off-balancesheet exposures

Securities

Derivatives

OthersTotal¥1,124.1
349.1
44.8

¥24.2
1.9
0.0

¥4.9
23.6
0.6

¥24.6
6.9
1.2

¥1,178.0
381.6
46.7

83.9

0.0

10.6

0.0

94.6

16.2
6.0
72.1
125.9
¥1,473.3
/

1.9
0.0
¥26.2
/

0.9
0.1
11.4
¥28.5
/

2.0
3.5
0.0
¥31.5
/

21.1
6.1
87.0
125.9
¥1,559.6
4.4

1. Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans to restructuring
countries and partial direct write-offs, calculated using the standardized approach for business units and asset classes that are immaterial for the purpose of
calculating credit risk-weighted assets.
2. Exposure to non-Japanese residents is included in “Overseas.”
3. “Others” include deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.

(Billions of yen)
As of March 31, 2014

Domestic
Overseas
Asia
Central and SouthAmerica
North America
Eastern Europe
Western Europe
Other areas
Total
Exempt portion
Notes:

Loans, commitments andother non- derivative offbalance-sheet exposures

Securities

Derivatives

OthersTotal¥1,017.8
296.9
36.2

¥14.1
2.0
0.0

¥7.8
28.8
0.6

¥33.4
10.2
41.0

¥1,073.3
338.1
41.0

171.6

0.0

19.8

0.1

191.6

1.2
4.3
66.7
16.6
¥1,314.7
/

2.0
0.0
¥16.2
/

8.3
¥36.7
/

2.1
3.8
0.0
¥43.7
/

5.3
4.3
78.9
16.6
¥1,411.4
4.4

1. Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans to restructuring
countries and partial direct write-offs, calculated using the standardized approach for business units and asset classes that are immaterial for the purpose of
calculating credit risk-weighted assets.
2. Exposure to non-Japanese residents is included in “Overseas.”
3. “Others” include deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.

269

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(e) Breakdown by industry(Billions of yen)
As of March 31, 2015

Manufacturing
Construction
Real estate
Service industries
Wholesale and retail
Finance and insurance
Individuals
Other industries
Total
Exempt portion

Loans, commitments
and other non- derivative
off-balance-sheet
exposures

Securities

Derivatives

OthersTotal¥516.7
27.1
105.6
99.7
212.9
73.4
126.1
311.5
¥1,473.3
/

¥15.9
0.2
3.5
0.7
3.4
1.5
0.7
¥26.2
/

¥3.5
0.0
8.0
0.7
0.0
16.2
¥28.5
/

¥6.2
0.6
0.5
3.1
13.0
3.8
1.2
2.8
¥31.5
/

¥542.3
28.0
109.8
111.7
230.0
78.8
127.3
331.4
¥1,559.6
4.4(Billions of yen)

As of March 31, 2014

Manufacturing
Construction
Real estate
Service industries
Wholesale and retail
Finance and insurance
Individuals
Other industries
Total
Exempt portion
Notes:

270

Loans, commitments
and other non- derivative
off-balance-sheet
exposures

Securities

Derivatives

OthersTotal¥271.1
40.8
144.1
123.7
196.9
21.0
174.4
342.5
¥1,314.7
/

¥4.8
2.7
3.5
1.6
1.2
1.4
0.7
¥16.2
/

¥3.5
0.0
0.0
5.5
2.3
2.9
22.3
¥36.7
/

¥10.6
0.6
0.9
3.5
17.3
4.1
1.1
5.1
¥43.7
/

¥290.1
44.3
148.6
134.5
217.9
29.5
175.5
370.7
¥1,411.4
4.4

1. Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans to restructuring
countries and partial direct write-offs, calculated using the standardized approach for business units and asset classes that are immaterial for the purpose of
calculating credit risk-weighted assets.
2. “Others” include deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.

○ Status of reserves for possible losses on loans
The amounts associated with regarded-method exposure and securitization exposure are excluded.
(f) Fiscal year-end balances of reserves for possible losses on loans and changes during the fiscal year (afterpartial direct write-offs)

General reserve for possible
losses on loans

Specific reserve for possible
losses on loans

Reserve for possible losses
on loans to restructuring
countries
Total

note:

Beginning balance
Increase during the fiscal year
Decrease during the fiscal year
Ending balance
Beginning balance
Increase during the fiscal year
Decrease during the fiscal year
Ending balance
Beginning balance
Increase during the fiscal year
Decrease during the fiscal year
Ending balance
Beginning balance
Increase during the fiscal
year
Decrease during the fiscal
year
Ending balance

As of, or for the fiscal year
ended, March
31, 2015(Billions of yen)
As of, or for the fiscal year
ended, March
31, 2014¥398.7¥503.0

344.4
398.7
344.4
216.7
180.3
216.7
180.3
0.7
0.6
0.7
0.6
¥616.3
525.4

398.7
503.0
398.7
235.7
216.7
235.7
216.7
1.0
0.7
1.0
0.7
¥739.8
616.3

616.3

739.8

525.4

616.3

General reserve for possible losses on loans in the above table represents the amount recorded in our consolidated balance sheet, and the amounts associated withregarded-method exposure and securitization exposure are not excluded.

271

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(g) Specific reserve for possible losses on loans by geographical area and industry
Domestic
Manufacturing
Construction
Real estate
Service industries
Wholesale andretailFinance andinsurance
Individuals
Other industries
Overseas
Exempt portion
Total

Domestic
Manufacturing
Construction
Real estate
Service industries
Wholesale and retail
Finance and insurance
Individuals
Other industries
Overseas
Exempt portion
Total

Note:

272

As of March 31, 2014

As of March 31, 2013

(Billions of yen)
Change¥138.4¥171.3¥ (32.9)

32.1

38.2

(6.1)

0.0

0.1

(0.1)

35.9
8.1
71.1
7.1
¥216.7

41.8
11.6
57.8
6.4
¥235.7

(5.8)
(3.5)
13.2
0.7
¥ (18.9)

As of March 31, 2015

As of March 31, 2014

(Billions of yen)
Change¥120.0¥138.4¥ (18.3)

30.7
7.5
11.7
12.0

29.5
5.5
5.0
11.4
35.0
0.8
25.6
6.9
49.9
10.4
¥180.3

35.1
7.0
24.9
12.3

30.7
7.5
11.7
12.0
32.1
0.0
35.9
8.1
71.1
7.1
¥216.7(4.3)
0.4(13.1)
(0.2)

(1.2)
(2.0)
(6.7)
(0.6)
2.9
0.7
(10.2)(1.2)(21.2)
3.2¥ (36.4)

Exempt portion represents the amount calculated using the standardized approach for business units and asset classes that are immaterial for purposes of calculating
credit risk-weighted assets.

(h) Write-offs of loans by industry
For the fiscal year ended March
31, 2015

Manufacturing
Construction
Real estate
Service industries
Wholesale and retail
Finance and insurance
Individuals
Other industries
Exempt portion
Total
Notes:

¥3.6

0.3
1.2
1.3
8.9
0.0
6.2
62.4
0.2
¥84.5

(Billions of yen)
For the fiscal year ended March
31, 2014

¥2.8

0.4
0.7
1.6
6.1
0.1
7.6
2.8
0.0
¥22.4

1. The above table represents the breakdown of losses on write-offs of loans recorded in our consolidated statement of income after excluding the amounts
associated with regarded-method exposure and securitization exposure.
2. Exempt portion represents the amount calculated using the standardized approach for business units and asset classes that are immaterial for purposes ofcalculating credit risk-weighted assets.
3. “Other industries” include overseas and non-Japanese resident portions.

273

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy○ Status of exposure to which the standardized approach is applied(i) Exposure by risk weight category after applying credit risk mitigation(Billions of yen)
As of March 31, 2015

Risk weight

0%
10%
20%
35%
50%
100%
150%
250%
350%
625%
937.5%
1,250%

Total

On-balance sheet

Off-balance sheet

Total

With externalrating¥2,013.6¥583.3¥2,597.0

¥76.5

149.2
468.6
85.0
1,974.4
0.1
63.6¥4,754.7

723.0
13.1
1,098.8
0.0
0.0¥2,418.5

149.2
1,191.7
98.1
3,073.2
0.1
63.6
0.0
0.0
¥7,173.2

26.9
45.3
63.3
¥212.1(Billions of yen)

As of March 31, 2014

Risk weight

Total
Notes:

274

0%
10%
20%
35%
50%
100%
150%
250%
350%
625%
937.5%
1,250%

On-balance sheet

Off-balance sheet

Total

With externalrating¥623.3¥729.4¥1,352.8¥129.3

81.8
482.1
63.9
2,835.9
0.0
55.9¥4,143.2

0.0
790.3
3.8
1,455.8
0.0
0.0¥2,979.5

81.8
1,272.4
67.8
4,291.7
0.0
55.9
0.0
0.0
¥7,122.7

25.2
36.0
45.8
¥236.4

1. The amounts in the above table are before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans to restructuring
countries and partial direct write-offs.
2. Off-balance-sheet exposure shows credit equivalent amount.

(j) Amount of exposure to which a risk weight of 1,250% is applied
As of March 31, 2015

(Billions of yen)
As of March 31, 2014

¥6.1

¥7.5

Amount of exposure to which a risk weight of 1,250% is applied○ Status of exposure to which the internal ratings-based approach is applied(k) Specialized lending exposure under supervisory slotting criteria by risk weight category

Risk weight

50%
70%
90%
95%
115%
120%
140%
250%
Default

Total

As of March 31, 2015

(Billions of yen)
As of March 31, 2014

¥0.6
37.7
7.1
94.3
30.5
24.3
28.3
¥223.2

¥0.0
23.1
5.9
70.6
15.0
23.6
90.8
30.1
¥259.4(l) Equity exposure under simple risk weight method of market-based approach by risk weight category
Risk weight
Total
Note:

300%
400%

As of March 31, 2015

(Billions of yen)
As of March 31, 2014

¥729.567.2¥796.7¥430.759.9¥490.7Of the equity exposure under the simple risk weight method, a risk weight of 300% is applied for listed equities and 400% for unlisted equities.

275

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(m) Portfolio by asset class and ratings segment (Corporate, etc.)(Billions of yen, except percentages)
As of March 31, 2015

Corporate
Investment
grade
zone
Noninvestment
grade
zone
Default
Sovereign
Investment
grade
zone
Noninvestment
grade
zone
Default
Bank
Investment
grade
zone
Noninvestment
grade
zone
Default
Equityexposure
under
PD/LGDapproach
Investment
grade
zone
Noninvestment
grade
zone
Default
Total
Investment
grade
zone
NonInvestment
grade
zone
Default

276

EL default(EAD
weighted
average)
(%)

PD
(EAD
weighted
average)
(%)

LGD
(EAD
weighted
average)
(%)

36.34

/

0.09

37.76

1.45

2.04

Risk
weight(EAD
weighted
average)(%)

EAD(Billionsof yen)On-balancesheet

Off-balance
sheet

Amount ofundrawn
commitments

Weighted
average ofcreditconversion
factor
(%)

36.84¥76,322.9¥54,372.9¥21,950.0¥21,339.9

74.99

/

25.67

53,727.3

35,036.9

18,690.4

18,600.1

74.99

32.41

/

64.92

21,403.3

18,186.8

3,216.5

2,735.3

75.00

100.00
0.01

42.93
38.61

40.22
/

35.88
1.50

1,192.2
77,968.1

1,149.1
64,807.8

43.1
13,160.3

4.3
953.3

75.00
75.00

0.00

38.61

/

1.42

77,851.4

64,704.3

13,147.1

941.0

75.00

0.85

37.70

/

59.14

116.6

103.4

13.1

12.2

75.00

100.00
0.20

57.51
36.25

52.76
/

62.89
25.61

0.0
7,268.8

0.0
4,406.6

2,862.2

462.4

75.00

0.09

36.18

/

22.11

6,620.6

3,968.7

2,651.9

375.6

75.00

0.81

36.62

/

61.55

644.5

434.2

210.2

86.7

75.00

100.00

97.29

95.04

29.81

3.6

3.6

-

-

-

0.47

90.00

/

126.62

4,831.4

4,691.1

140.2

-

-

0.06

90.00

/

115.134,502.9

4,362.7

140.2

-

-

1.06

90.00

/

235.79

311.8

311.8

-

-

-

100.00
0.96

90.00
38.96

/
/

1,192.50
22.40

16.6
¥166,391.4

16.6¥128,278.5¥38,112.9¥22,755.6

74.99

0.04

39.80

/

15.10

142,702.5

108,072.6

34,629.8

19,916.9

74.99

1.43

33.35

/

67.17

22,476.3

19,036.3

3,439.9

2,834.3

75.00

100.00

43.74

40.38

51.73

1,212.5

1,169.4

43.1

4.3

75.00

(Billions of yen, except percentages)

Corporate
Investment
grade
zone
Noninvestment
grade
zone
Default
Sovereign
Investment
grade
zone
Noninvestment
grade
zone
Default
Bank
Investment
grade
zone
Noninvestment
grade
zone
Default
Equityexposure
under
PD/LGDapproach
Investment
grade
zone
Noninvestment
grade
zone
Default
Total
Investment
grade
zone
Noninvestment
grade
zone
Default
Notes:

As of March 31, 2014

PD
(EAD
weighted
average)
(%)

LGD
(EAD
weighted
average)(%)

EL default(EAD
weighted
average)(%)

Riskweight(EAD
weighted
average)(%)¥15,675.9

Amount ofundrawn
commitments¥13,690.8

Weighted
average ofcreditconversion
factor
(%)

39.99¥63,438.6¥47,762.7

0.10

37.10

/

26.08

42,215.3

29,168.8

13,046.5

11,656.6

75.13

2.45

31.69

/

69.43

20,207.7

17,619.2

2,588.4

2,029.5

75.41

100.00
0.01

43.22
38.23

40.77
/

32.55
1.32

1,015.6
77,930.3

974.6
61,723.6

41.0
16,206.6

4.7
500.8

75.00
75.55

0.00

38.23

/

1.22

77,845.4

61,642.8

16,202.5

498.8

75.55

1.68

37.00

/

86.14

84.8

80.6

4.1

2.0

75.00

100.00
0.34

57.72
35.94

53.15
/

60.49
26.53

0.0
6,540.7

0.0
3,811.0

2,729.7

397.8

75.00

0.09

35.88

/

23.06

5,981.1

3,485.2

2,495.9

324.4

75.00

0.93

36.11

/

64.10

547.7

317.0

230.7

73.4

75.00

100.00

59.57

56.39

42.14

11.8

8.7

3.0

-

-

0.43

90.00

/

136.67

1,199.5

1,199.5

-

-

-

0.07

90.00

/

123.091,090.3

1,090.3

-

-

-

1.94

90.00

/

252.67

106.8

106.8

-

-

-

100.00
1.06

90.00
37.37

/
/

1,192.50
19.97

2.2¥149,109.3

2.2¥114,496.9¥34,612.3¥14,589.6

75.18

0.04

38.19

/

11.55

127,132.2

95,387.3

31,744.9

12,479.9

75.14

2.40

32.12

/

70.30

20,947.2

18,123.8

2,823.3

2,104.975.39

100.00

43.52

40.95

35.23

1,029.8

985.7

44.0

4.7

75.00

2.45

35.48

/

EAD
(Billionsof yen)On-balancesheet

Off-balance
sheet

75.17

1. Investment grade zone includes obligor ratings A1 through B2, non-investment grade zone includes C1 through E2 (excluding E2R), and default includes E2R through H1 (seepage 16 for details of obligor ratings).
2. “Corporate” does not include specialized lending exposure under supervisory slotting criteria.
3. Each asset class includes purchased receivables.
4. The commitments that can be terminated at any time without condition or terminated automatically are not included in the amount of undrawn commitments and weighted averageof credit conversion factor.
5. Regarding equity exposure under the PD/LGD approach, we recognize the risk-weighted assets by multiplying 1,250% by the expected loss (“EL”).

277

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(n) Portfolio by asset class and ratings segment (Retail)(Billions of yen, except percentages)
As of March 31, 2015

Residential
mortgage
Nondefault
Default
Qualifying
revolvingloan (retail)Nondefault
Default
Other retail
Nondefault
Default
Total
Nondefault
Default

PD(EAD
weighted
average)
(%)

LGD
(EAD
weighted
average)(%)

EL default(EAD
weighted
average)(%)

Riskweight(EAD
weighted
average)(%)

EAD(Billions ofyen)

On-balance
sheet

Offbalance
sheet

1.81

41.44

/

32.44

¥101,734.0¥9,990.1¥183.3

¥8.9

75.25

0.77

41.37

/

32.45

10,066.3

9,885.7

180.6

8.9

75.25

100.00

47.74

45.33

31.87

107.0

104.3

2.6

-

-

3.22

77.26

/

64.63

499.0

333.5

165.4

1,562.1

10.59

Weighted
Amount of average ofundrawn
creditcommit- conversion
ments factor (%)

3.03

77.27

/

64.65

498.0

332.7

165.2

1,560.4

10.59

100.00
4.60

73.17
53.30

69.25
/

51.70
50.93

0.9
2,674.4

0.7
2,659.3

0.2
15.0

1.6
17.5

12.81
66.35

1.64

53.54

/

51.43

2,594.0

2,582.7

11.3

13.7

58.32

100.00
2.42

45.38
45.15

42.73
/

35.03
37.35

80.3
¥13,346.9

76.6¥12,983.0

3.7¥363.83.8¥1,588.7

95.01
11.57

1.03

45.13

/

37.41

13,158.4

12,801.2

357.2

1,583.1

11.37

100.00

46.86

44.35

33.32

188.4

181.8

6.5

5.5

70.16

(Billions of yen, except percentages)
As of March 31, 2014

Residential
mortgage
Nondefault
Default
Qualifying
revolvingloan (retail)Nondefault
Default
Other retail
Nondefault
Default
Total
Nondefault
Default
Notes:

278

PD
(EAD
weighted
average)
(%)

LGD
(EAD
weighted
average)(%)

EL default(EAD
weighted
average)(%)

Riskweight(EAD
weighted
average)(%)

EAD(Billions ofyen)

Onbalance
sheet

2.26

42.14

/

33.23

¥10,366.2

0.79

42.05

/

33.31

100.00

48.29

46.23

3.41

78.51

3.17

Offbalance
sheet

Amount ofundrawn
commitments

Weighted
average ofcreditconversion
factor (%)¥10,153.8¥212.3

¥7.8

75.00

10,212.8

10,004.3

208.4

7.8

75.00

27.42

153.4

149.5

3.9

-

-

/

67.66

434.7

288.1

146.6

1,507.9

9.72

78.52

/

67.72

433.7

287.3

146.4

1,506.1

9.72

100.00
4.95

74.08
53.78

70.63
/

45.62
50.51

1.0
2,730.9

0.8
2,713.8

0.2
17.0

1.7
18.4

11.76
69.80

1.69

54.01

/

51.15

2,640.2

2,626.7

13.5

14.7

63.66

100.00
2.84

47.17
45.66

44.77
/

31.80
37.82

90.6
¥13,531.9

87.0¥13,155.8

3.5¥376.1

3.6¥1,534.2

94.41
10.78

1.05

45.62

/

37.98

13,286.8

12,918.4

368.4

1,528.7

10.58

100.00

47.99

45.79

29.12

245.1

237.4

7.6

5.4

67.35

1. Each asset class includes purchased receivables.
2. The commitments that can be terminated at any time without condition or terminated automatically are not included in the amount of undrawn commitments andweighted average of credit conversion factor.

(o) Actual losses by asset class
For the period from April 1, 2014
through March 31, 2015
Actual losses(Billions of yen)
For the period from April 1, 2013
through March 31, 2014
Actual losses¥128.1
0
(1.2)
(0.7)
2.2
5.1
¥133.6¥ (41.2)(13.5)
(1.2)
(3.2)
0.4
1.4
¥ (57.4)

Corporate
SovereignBank
Residential mortgage
Qualifying revolving loan (retail)
Other retail
Total
Note:

Actual losses are the sum of the net increase (decrease) in the amount of partial direct write-offs, specific reserve for possible losses on loans and general reserve forpossible losses on loans (for claims against special attention obligors or below), etc., as well as tax-qualified direct write-offs, losses from sales of non-performing loans,losses from debt forgiveness and losses from debt-equity swaps during the relevant period. Equity exposure under the PD/LGD approach is not included in the amount of
actual losses.
<Analysis>

The total amount of actual losses was increased by ¥191.0 billion from the previous period to ¥133.6 billion due to significant increase of losses from
corporate exposure.

(p) Comparison of estimated and actual losses by asset class
For the period from April 1, 2014 through March
31, 2015
Estimated losses (expected
Actual losses
losses As of March 31, 2014)
After
deduction ofreserves

Corporate
SovereignBank
Residential mortgage
Qualifying revolving loan (retail)
Other retail
Total

Corporate
SovereignBank
Residential mortgage
Qualifying revolving loan (retail)
Other retailTotal¥596.0
1.5
10.3
104.8
11.5
61.9
¥786.3¥195.5
1.5
5.6
46.1
3.8
23.8
¥276.6¥128.1
0.0
(1.2)
(0.7)
2.2
5.1
¥133.6(Billions of yen)
For the period from April 1, 2013 through March
31, 2014
Estimated losses (expected
Actual losses
losses as of March 31, 2013)
After
deduction ofreserves¥785.1
1.7
12.5
123.7
11.2
69.1
¥1,003.5¥246.9(11.9)
6.4
50.5
3.9
26.2
¥322.3¥ (41.2)(13.5)
(1.2)
(3.2)
0.4
1.4
¥ (57.4)

For the period from April 1, 2012 through March
31, 2013
Estimated losses (expected
Actual losses
losses as of March 31, 2012)
After
deduction ofreserves(Billions of yen)
For the period from April 1, 2011 through March
31, 2012
Estimated losses (expected
Actual losses
losses as of March 31, 2011)
After
deduction ofreserves¥828.0
3.1
18.4
134.8
10.8
73.5
¥1,068.8¥989.6
1.3
31.9
150.4
12.2
74.7
¥1,260.3¥272.6(10.2)
6.3
41.6
3.7
24.2
¥338.4

¥75.6
0.2
(5.0)
(9.2)
0.3
0.2
¥62.1

¥373.2(11.7)
4.1
43.2
4.2
24.1
¥437.2

¥29.2
0.2
(1.4)
(2.9)
(0.7)
5.2
¥29.5

279

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

Corporate
SovereignBank
Residential mortgage
Qualifying revolving loan (retail)
Other retail
Total

Corporate
SovereignBank
Residential mortgage
Qualifying revolving loan (retail)
Other retail
Total
Notes:

280

For the period from April 1, 2010 through March
31, 2011
Estimated losses (expected
Actual losses
losses as of March 31, 2010)
After
deduction ofreserves(Billions of yen)
For the period from April 1, 2009 through March
31, 2010
Estimated losses (expected
Actual losses
losses as of March 31, 2009)After
deduction ofreserves¥1,296.9
1.5
38.4
122.6
10.2
51.2
¥1,521.1¥1,313.1
1.7
35.5
95.8
10.3
51.3
¥1,508.0¥454.0(11.4)
8.3
31.1
3.5
15.0
¥500.6

¥22.9
0.2
(0.4)
31.5
1.4
23.1
¥78.7

¥473.3(10.8)
6.5
24.8
3.8
15.6
¥513.3¥166.5
0.3
1.0
33.2
0.2
4.3
¥205.8For the period from April 1, 2008 through March
31, 2009
Estimated losses (expected
Actual losses
losses as of March 31, 2008)
After
deduction ofreserves(Billions of yen)
For the period from April 1, 2007 through March
31, 2008
Estimated losses (expected
Actual losses
losses as of March 31, 2007)
After
deduction ofreserves¥1,121.0
1.3
2.9
86.6
7.9
51.9
¥1,271.8¥1,086.0
5.4
6.4
78.2
7.2
52.9
¥1,236.5¥350.0(11.1)
2.5
22.7
3.2
16.4
¥383.9¥345.3
0.0
28.6
17.2
2.1
3.8
¥397.3¥217.0
(7.0)
2.6
6.8
2.3
8.8
¥230.5

1. Estimated losses after deduction of reserve are the amount after deductions of partial direct write-offs, specific reserves for possible losses on loans
and general reserves for possible losses on loans (for claims against special attention obligors or below), etc., as of the beginning of each period.
Equity exposure under the PD/LGD approach is not included in the amount of estimated losses.
2. Actual losses are the sum of the net increase (decrease) in the amount of partial direct write-offs, specific reserves for possible losses on loans andgeneral reserves for possible losses on loans (for claims against special attention obligors or below), etc., as well as tax-qualified direct write-offs,
losses from sales of non-performing loans, losses from debt forgiveness and losses from debt-equity swaps during the relevant period. Equity
exposure under the PD/LGD approach is not included in the amount of actual losses.

¥74.6
0.0
(2.6)
5.1
(0.1)
(2.8)
¥74.1

■ Methods for credit risk mitigation(7) Risk management regarding credit risk mitigation
We obtain collateral and guarantees as a means of securing credit. In obtaining the collateral and guarantees, weevaluate the value of the collateral, guarantee performance capability of guarantor and legal enforceability, and we also
conduct periodical subsequent re-evaluations. Furthermore, we monitor the state of concentration of collateral type andconcentration of credit risks in individual companies, including indirect credit exposure such as guarantees.
When calculating the credit risk weighted assets for capital adequacy ratio regulations, the effect of credit risk mitigation
through financial collateral (mainly deposits and securities), other collateral (mainly real estate) and guarantees by“sovereign, banks or corporations above a certain credit rating” is reflected.
For derivatives transactions and repurchase transactions, in cases in which a bilateral netting contract is valid in light of
the legal system of the relevant jurisdiction, we take its effect into consideration.

(8) Credit risk mitigation by portfolio classification
The amounts of exposure to which the method of credit risk mitigation through collateral and guarantees is applied are as
follows:(Billions of yen)
Financial collateralInternal ratings-based
approachCorporate
SovereignBank
RetailResidential
mortgage
Qualifying revolving
loan
Other retail
OthersStandardized approach
Sovereign
Bank
Corporate
Residential mortgage
Securitizations
OthersTotal

As of March 31, 2015
Other collateral
Guarantees

Credit derivatives

Total¥2,103.9¥5,157.4¥8,183.5¥43.7¥15,488.7

1,715.0
2.5
359.0
27.4

4,769.8
13.0
157.2
217.3

6,763.0
672.0
47.7
700.6

43.7
-

13,291.7
687.5
564.0
945.4

-

-

154.7

-

154.7

-

-

0.2

-

0.2

27.4
195.3
180.0
4.6
10.7
¥2,299.3

217.3
/
/
/
/
/
/
/
¥5,157.4

545.6
104.6
104.6
¥8,288.2

¥43.7

790.4
300.0
284.6
4.6
10.7
¥15,788.8

281

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(Billions of yen)Internal ratings-based
approachCorporate
SovereignBank
RetailResidential
mortgage
Qualifying
revolving loan
Other retail
OthersStandardized
approach
Sovereign
Bank
Corporate
Residential
mortgage
Securitizations
OthersTotal

282

Financial collateral

Other collateral

As of March 31, 2014
Guarantees¥2,463.0¥4,917.9¥6,963.4¥29.0¥14,373.5

2,071.0
2.5
363.2
26.1

4,604.9
16.8
97.5
198.6

5,867.3
282.5
24.6
789.0

29.0
-

12,572.3
301.9
485.4
1,013.8

-

-

181.8

-

181.8

-

-

0.2

-

0.2

26.1
-

198.6
-

606.8
-

-

831.6
-

285.7

/

53.8

-

339.5

250.0
6.3
29.4

/
/
/

53.8
-

-

303.8
6.3
29.4

-

/

-

-

-

¥2,748.8//¥4,917.9¥7,017.2¥29.0¥14,713.1

Credit derivatives

Total

■ Counterparty risk in derivatives transactions and long-settlement transactions(9) Management of counterparty risk in derivatives transactions and long-settlement transactions
In managing the risk pertaining to counterparty risk in derivatives transactions and long-settlement transactions, we
generally allocate risk capital together with loans, etc. As to derivatives transactions with financial institutions, etc., weperiodically, where necessary, deliver and receive collateral to and from the counterparty based on the replacement cost to
mitigate credit risk (collateralized derivative transactions). In conducting such transactions, there is a risk in which we may
be required to provide additional collateral in cases where our credit profile deteriorates. We calculate reserves forderivatives transactions by multiplying the same reserve ratio that we use for loans, etc., against the replacement cost.

(10) Status of counterparty risk in derivatives transactions and long-settlement transactions(a) Status of derivatives transactions and long-settlement transactions
Derivative transactions

Current exposure method
Foreign exchangerelated transactions
Interest rate-relatedtransactions
Gold-relatedtransactions
Equity-relatedtransactions
Transactions related
to precious metals(other than gold)
Other commodityrelated transactions
Credit derivatives
transactions
Subtotal(A)
Netting benefits by(B)
close-out netting
settlement
contracts
Subtotal(C)=(A)+(B)
Effect of credit risk(D)
mitigation bycollateral
Total(C)+(D)

Standardized method
Total
Note:

(Billions of yen)
As of March 31, 2015
Gross
Gross
replacement
add-oncost

CreditequivalentamountAs of March 31, 2014
Gross
Gross
replacement
add-oncost

Creditequivalentamount¥2,867.1¥2,812.2¥5,679.3¥1,636.4¥2,377.2¥4,013.6

4,018.4

1,408.4

5,426.9

4,255.8

1,794.5

6,050.3

-

-

-

-

-

-

102.6

78.8

181.5

119.8

84.4

204.2

59.8

162.7

222.6

25.7

93.9

119.6

1,001.3

1,313.3

2,314.7

382.9

1,279.8

1,662.7

38.0

224.9

262.9

53.6

250.2

303.9

8,087.5

6,000.5

14,088.0

6,474.4/

5,880.1/

12,354.6
7,578.6//

8,533.5//

5,554.4//

1,100.1////

4,775.9
631.9

¥/

¥/

¥4,454.3¥/¥/¥4,144.0

Creditequivalentamount¥311.6

Creditequivalentamount¥193.0The current exposure method and standardized method are used as the method to calculate credit equivalent amounts.

283

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital AdequacyLong-settlement transactions
As of March 31, 2015
Gross
Gross
Creditreplacement
add-onequivalentcostamountLong-settlement transactions
Notes:¥0.9¥2.9(Billions of yen)
As of March 31, 2014
Gross
Gross
Creditreplacement
add-onequivalentcostamount¥3.8¥5.0

As of March 31, 2015

Financial collateral
Other collateral
Guarantees, others
Total

¥8.7
26.3
23.6
¥58.7

(c) Notional amount of credit derivatives subject to credit equivalent amount calculations

Credit derivatives type:
Credit default swap
Total return swap

(Billions of yen)
As of March 31, 2014

¥17.3

29.9
19.3
¥66.6

As of March 31, 2015

(Billions of yen)
As of March 31, 2014

Notional amount

Notional amountProtection bought¥1,957.9¥2,169.2

Protection soldProtection bought
Protection soldProtection
boughtProtection sold

1,983.9-

2,018.6¥2,169.2¥1,957.9

1,983.9

Note: Credit derivatives used for credit risk mitigation are as follows:

Credit derivatives used for credit risk mitigation

284

¥7.4

1. The current exposure method is used as the method to calculate credit equivalent amounts.
2. Neither the “netting benefits by close-out netting settlement contracts” nor the “effect of credit risk mitigation by collateral” applies to long-settlement transactions.

(b) Amounts of credit risk mitigation by type

Total

¥2.3

2,018.6

As of March 31, 2015

(Billions of yen)
As of March 31, 2014

¥60.9

¥79.5

■ Securitization exposure
We classify transactions as securitization exposure based on two characteristics, “non-recourse” and “senior/subordinatedstructure,” pursuant to the definitions set forth in the FSA Notice No. 20, etc.; provided that the transactions do not include
those which fall within specialized lending exposure.

(11) Summary of securitization exposure and its risk management
We are associated with securitization transactions from various purposes and positions through our banking book andtrading book. Quantitative information related to (a) to (c) below is disclosed in “(13) Quantitative disclosure items forsecuritization exposure,” in accordance with the definitions set forth in the FSA Notice No. 20. Securitization exposures are
separately disclosed for calculation of credit risk-weighted assets and market risk equivalent amounts.
○The role of our securitization transactions(a) Securitization of our assets (“Securitization as originator”)
For the purposes of mitigating credit risk and credit concentration risk, controlling economic capital and responding to theneeds of our investors, etc., we engage in securitization transactions the underlying assets of which include mortgage
loans and loans to our corporate customers. When conducting a securitization as an originator, we consider suchtransaction from various aspects, including the effects of reduction of economic capital and improvement of return on risk
as well as the practical effects of risk transfers, and make a comprehensive judgment on structure and appropriateness oftransaction.
(b) Securitization program (ABCP/ABL) sponsor
As a means of supporting our customers in their securitization of their account receivables and notes receivables, etc., weretain securitization exposure by providing asset-backed loans (ABLs, which are on-balance-sheet transactions), andproviding asset-backed commercial paper (ABCP) backup lines (off-balance-sheet transactions), as sponsor to special
purpose companies (in the form of Cayman Islands Corporations, etc.). In such cases, in addition to gaining firm
understanding of the actual risk profile through due diligence from the viewpoint of investors, we assign internal ratings andmake evaluations by assessing such transactions and carefully managing the exposure together with other direct loan
assets.
(c) Investment in alternative credit risk assets (“Securitization transactions as investor”)
We hold securitization products, such as ABS, CMBS, RMBS, and CDO, and resecuritization products, the underlying
assets of which are mainly RMBS and CDO, etc., for the purpose of investing in alternative credit risk assets that are
different from conventional credit risk assets in order to diversify our investment portfolio. The Risk Management
Committee, etc. set limits on the amount of investment for securitization transactions as investor, and we maintain astringent structure for management of such transactions. In addition, we implement stress tests based on scenarios underthe market liquidity depletion and sharp price declines.
In addition, we undertake various securitization program arrangements such as ABL, ABCP and trust schemes, etc., as ameans of financing for our customers. We endeavor to understand the actual risk profile, including the underlying assets,
and to disclose appropriately the risks and terms of the program to the customers who invest in the product.
Furthermore, we actively act as servicer for securitization transactions, offer settlement account facilities (servicer cash
advance) and provide interest rate swaps to securitization conduits.
None of our affiliated entities hold securitization products in which we are involved as originators or sponsors.
○ Overview of risk characteristics in securitization and monitoring system
In addition to price fluctuation and market liquidity risks, securitization and resecuritization products are exposed to risks
related to default, recovery and granularity of underlying asset portfolio.

285

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

The structure of these products also contains risks related to the originators, the administrators, trustees and managers of
the underlying assets.
To address these risks, we also analyze the structure in terms of the underlying assets and credit events. We monitor theability, quality and operating performance of originators and managers in charge of controlling the underlying assets as wellas covenant information and credit status of the parties related to the program.
In addition, for resecuritization products, we pay attention to the underlying assets of the underlying securitization products.
We also assign internal ratings to all products and review the rating at least once a year. If there is a change in the credit
situations, we will review the internal rating as appropriate. As mentioned above, we have established a system tocomprehensively understand the risk characteristics of securitization exposures and manage these exposures.
We conduct credit risk measurements on all credit transactions, including securitization transactions. Furthermore, we
carry out periodic monitoring on investment amount and performance on securitization transactions and report thesituations to our Risk Management Committee, etc.
○Status of response to Basel Framework
In calculating credit risk-weighted assets of securitization exposure under the internal ratings-based approach, we apply theratings-based approach (“RBA”) if the asset has a rating obtained from eligible external credit assessment institutions andapply the supervisory formula approach (“SF”) in other cases pursuant to the FSA Notice No. 20. We apply a risk weight of
1,250% under Basel III when neither RBA nor SF can be applied.
In addition, in calculating credit risk-weighted assets of securitization exposure under the standardized approach, we
calculate based on risk weight according to ratings by eligible external credit assessment institutions and weighted averagerisk weight of underlying assets.
In terms of securitization exposure in our trading book that is subject to market risk regulations, we adopt the standardized
measurement method and calculate market risk equivalent amounts in connection with the specific risks of securitization
products based on risk weights according to ratings assigned by eligible external credit assessment institutions pursuant to
the FSA Notice No. 20.
As for the eligible external credit assessment institutions, we refer to Rating and Investment Information, Inc. (R&I), Japan
Credit Rating Agency, Ltd. (JCR), Moody's Investors Service Inc. (Moody's), Standard & Poor's (S&P) and Fitch Ratings,
Ltd. in determining securitization exposure risk weight (We do not separately designate eligible external credit assessment
institutions for each type of securitization exposure).
(12) Accounting policies for securitization transactions
The point at which financial assets and liabilities relating to securitization transactions begin or cease to be recognized,
their evaluation and accounting treatment are pursuant to “Accounting Standards Relating to Financial Products” (BusinessAccounting Standards No. 10), etc., and we applied (a) valuations obtained from brokers and others or (b) reasonably
calculated prices based on the reasonable estimates of our management as fair value, unless it is deemed to be extremely
difficult to determine the fair value. In deriving reasonably calculated prices based on the reasonable estimates of ourmanagement, we used the discounted cash flow method, and the price decision variables include default rates, recovery
rates, pre-payment rates and discount rates.
Furthermore, we apply appropriate accounting treatment on compound financial products based on “Report on auditing
Securitized Instruments”, announced by the Japanese Institute of Certified Public Accountants on March 26, 2008.

286

(13) Quantitative disclosure items for securitization exposure○ Securitization exposure as originator (for calculation of credit risk-weighted assets)(a) Information by type of underlying assets

Traditional securitizations
Amount of underlying assets(a)Default exposure
Losses during the fiscal year
Amount of exposures
securitized during the fiscal
year
Gains and losses recognizedon sales during the fiscal
year
Securitization subject to early
amortization treatment
Synthetic securitizations
Amount of underlying assets(b)Default exposure
Losses during the fiscal year
Amount of exposures
securitized during the fiscal
year
Total amount of underlying
assets (a)+(b)(Billions of yen)
As of, or for the fiscal year ended, March 31, 2015
Lease
Auto
payment
CorpoRealloans
receivables
rate
estateCreditcards

Residential
mortgageloans

Securitization
products

Total

¥-

¥98.3
1.1

¥-

¥-

¥-

¥-

¥-

¥98.3
1.1

-

0.1

-

-

-

-

-

0.1

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

173.5
-

-

-

173.5
-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

¥-

¥98.3

¥-

¥-

¥173.5¥-¥-¥271.8287

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(Billions of yen)

Traditional securitizations
Amount of underlying assets(a)Default exposure
Losses during the fiscal year
Amount of exposures
securitized during the fiscal
year
Gains and losses recognizedon sales during the fiscal
year
Securitization subject to early
amortization treatment
Synthetic securitizations
Amount of underlying assets(b)Default exposure
Losses during the fiscal year
Amount of exposures
securitized during the fiscal
year
Total amount of underlying
assets (a)+(b)Notes:

As of, or for the fiscal year ended, March 31, 2014
Lease
Auto
payment
CorpoRealloans
receivables
rate
estateCreditcards

Residential
mortgageloans

Securitization
products

Total

¥-

¥117.6

¥-

¥-

¥-

¥-

¥-

¥117.6

-

1.4
0.3
-

-

-

-

-

-

1.4
0.3
-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

366.3

-

-

366.3

-

-

-

-

113.2

-

-

113.2

¥-

¥117.6¥-¥-¥366.3¥-¥-¥484.01. Items that refer to “during the fiscal year” show amounts accumulated during the fiscal year ended March 31, 2014 and 2015.
2. “Amount of underlying assets” and “Losses during the fiscal year” include those related to, in addition to exposure originated by us, exposure to assets originatedby other financial institutions if they are contained in the same securitization program.
3. “Default exposure” and “Losses during the fiscal year” with respect to synthetic securitization transactions are based on the definition of default as set forth in therespective transactions.
4. Classification based on type of underlying assets is conducted according to the principal underlying asset type for each transaction
5. “Credit cards” include shopping credit receivables, card loans, etc.
6. The effects of risk mitigation, in the context of calculating capital adequacy ratio, of transfers (hedges) of risk through synthetic securitization transactions arereflected in “Required capital” of “(B) Information of securitization exposure retained or purchased.”
7. Of the securitization exposure retained or purchased whose risk has been transferred (hedged) through securitization schemes, we have categorized securitization
exposure as investor if the risk transfer (hedge) effects are not reflected in the calculation of capital adequacy ratio, following the definition for classification of
securitization exposure set forth in the FSA Notice No. 20, etc.

288─Exposure intended to be securitized─
(Billions of yen)

Exposure intended to be
securitized

Creditcards

Residential
mortgage
loans

Auto
loans

¥-

¥-

¥-

As of March 31, 2015
Lease
payment
Corporeceivables
rate

¥-

¥-

Real
estateSecuritization
products

Total

¥-

¥-

¥-

(Billions of yen)

Exposure intended to be
securitized

Creditcards

Residential
mortgage
loans

Auto
loans

¥-

¥-

¥-

As of March 31, 2014
Lease
payment
Corporeceivables
rate

¥-

¥-

Real
estateSecuritization
products

Total

¥-

¥-

¥-

(b) Information of securitization exposure retained or purchased
─Exposure by type of underlying asset─
(Billions of yen)On-balance sheet
Exposure on resecuritizations
Off-balance sheet
Exposure on resecuritizations
Total
Exposure on resecuritizations
Exposure on securitizations
to which a risk weight of
1,250% is applied
Exposure whose underlying
assets are overseas assets

As of March 31, 2015
Lease
payment
Corporeceivables
rate

Creditcards

Residential
mortgage
loans

Auto
loans

Real
estateSecuritization
products

¥¥-

¥32.6
¥32.6
-

¥¥-

¥¥-

Total

¥168.74.8¥173.5-¥¥-¥¥-¥201.44.8¥206.2
-

-

-

-

-

-

-

-

-

-

-

-

-

121.5

-

-

121.5

(Billions of yen)On-balance sheet
Exposure on resecuritizations
Off-balance sheet
Exposure on resecuritizations
Total
Exposure on resecuritizations
Exposure on securitizations
to which a risk weight of
1,250% is applied
Exposure whose underlying
assets are overseas assets
Notes:

As of March 31, 2014
Lease
payment
Corporeceivables
rate

Creditcards

Residential
mortgage
loans

Auto
loans

¥-

¥34.5

¥-

¥-

-

-

-

-

-

-

-

34.5
-

-

Real
estateSecuritization
products

Total¥364.2¥-¥-¥398.8

-

-

-

-

-

-

110.9

-

-

110.9

-

2.0
366.3
-

-

-

2.0
400.8
-

1.Classification based on type of underlying asset is conducted according to the principal underlying asset type for each transaction.
2.“Credit cards” include shopping credit receivables, card loans, etc.
3.“Exposure whose underlying assets are overseas assets” is classified based on the principal underlying asset type for each transaction.
4.“Exposure on resecuritizations” as of both March 31, 2014 and 2015 are classified following Article 1, Paragraph 2-2 of the FSA Notice No. 20 (hereinafter the same).

289

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

─Exposure by risk weight category─(Billions of yen)RiskweightUp to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Less
than1,250%
1,250%

Total

As of March 31, 2015
Offbalance
Exposure on
sheet
resecuritizations

On-balance
sheet

Exposure on
resecuritizations¥145.3
41.4
4.0
3.2

¥-

¥4.5
-

7.3
¥201.4

¥-

0.2
¥4.8

Total

Exposure on
resecuritizations¥-¥149.9
41.4
4.0
3.2

¥-

¥-

7.6
¥206.2¥(Billions of yen)RiskweightUp to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Less than1,250%
1,250%

Total

On-balance
sheet

Exposure on
resecuritizations¥320.6
6.2
34.5
11.9
17.4
8.0
¥398.8¥¥-

As of March 31, 2014
Offbalance
Exposure on
sheet
resecuritizations

¥1.9
0.1
¥2.0

¥¥-

Total

Exposure on
resecuritizations¥322.6
6.2
34.5
11.9
17.4
8.1
¥400.8¥¥-

─Amount of required capital by risk weight category─(Billions of yen)RiskweightTotal

290

Up to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Less
than1,250%
1,250%

As of March 31, 2015
Offbalance
Exposure on
sheet
resecuritizations

On-balance
sheet

Exposure on
resecuritizations

¥1.0
1.3
0.3
-

¥-

¥0.0
-

0.7
¥3.4

¥-

0.0
¥0.0

Total

Exposure on
resecuritizations

¥-

¥1.0
1.3
0.3
-

¥-

¥-

0.7
¥3.5

¥-

(Billions of yen)RiskweightUp to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Less than1,250%
1,250%

Total

As of March 31, 2014
OffExposure onbalanceresecuritizations
sheet

On-balance
sheet

Exposure on
resecuritizations

¥1.9

¥-

¥0.0

0.1
1.4
0.8
0.8
0.4
¥5.7

¥-

¥0.0

Total

Exposure on
resecuritizations

¥-

¥2.0

¥-

¥-

0.1
1.4
0.8
0.8
0.4
¥5.7

¥-

─Credit risk mitigation against exposure on resecuritizations─(Billions of yen)
As of March 31, 2014

As of March 31, 2015

Risk
weightUp to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Over 650%

Total
Note:

¥-

¥-

¥-

¥-

The above table shows the exposure on resecuritizations based on the risk weight after taking into consideration the effect of method to mitigate credit risk.

─Capital increase due to securitization transactions─(Billions of yen)

Capital increase due tosecuritizationtransactions

Creditcards

Residential
mortgage
loans

Auto
loans

¥-

¥0.2

¥-

As of March 31, 2015
Lease
payment
receivables
Corporate

¥-

¥-

Real
estateSecuritization
products

Total

¥-

¥-

¥0.2

(Billions of yen)

Capital increase due tosecuritizationtransactions

Creditcards

Residential
mortgage
loans

Auto
loans

¥-

¥1.7

¥-

As of March 31, 2014
Lease
payment
receivables
Corporate

¥-

¥-

Real
estateSecuritization
products

Total

¥-

¥-

¥1.7

291

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy○ Securitization exposure as sponsor of securitization programs (ABCP/ABL) (for calculation of credit riskweighted assets)(c) Information by type of underlying assets

Creditcards

Amount of underlying
assetsDefault exposure
Estimated loss amountrelated to underlying
assets during the fiscal
year
Amount of exposures
securitized during the
fiscal year

(Billions of yen)

As of, or for the fiscal year ended, March 31, 2015
Residential
Lease
Account
mortgageAutopayment
and note
Real
loans
loans
receivables
receivables
estateOthersTotal¥139.0

¥-

¥21.9

¥50.2

¥477.0¥-¥102.6¥790.9

-

-

-

-

6.2

-

-

6.2

2.4

-

0.8

0.1

8.1

-

1.3

12.9

¥1,085.7¥-¥210.8¥526.0¥2,640.1¥-¥634.2¥5,097.0(Billions of yen)Amount of underlying
assetsDefault exposure
Estimated loss amountrelated to underlying
assets during the fiscal
year
Amount of exposures
securitized during the
fiscal year
Notes:

292

As of, or for the fiscal year ended, March 31, 2014
Lease
Account
Autopayment
and noteReal
loans
receivables
receivables
estateCreditcards

Residential
mortgage
loans

¥50.3

¥-

¥14.3

¥61.3

¥464.8

-

-

-

-

1.1

-

0.1

¥296.4¥-¥316.4

Others

Total

¥-

¥71.9

¥662.7

7.1

-

-

7.1

0.0

8.9

-

0.7

11.0

¥646.1¥3,308.2¥-¥723.3¥5,290.6

1. Items that refer to “during the fiscal year” show amounts accumulated during the fiscal year ended March 31, 2014 and 2015.
2. Securitization exposure that is acquired in securitization of customer’s claims other than as sponsor (in the form of asset-backed securities, trust beneficiary rights andother transferable instruments) is categorized as securitization exposure as investor.
3. The amount of default exposure is the amount of the underlying assets recognized as default in the calculation of capital adequacy ratio.
4. Estimated loss amount related to underlying assets is based on the amount of the underlying assets as of the relevant date and the following parameters that are used in
the calculation of capital adequacy ratio:
・ parameters used in the calculation of required capital for an underlying asset when applying the supervisory formula (e.g., PD); and・ with respect to underlying assets classified as securitization exposure, the conservative application of risk weights used in the ratings-based approach.
5. Classification based on type of underlying assets is conducted according to the principal underlying asset type for each transaction. Transactions that are difficult toclassify are included under “Others.”
6. “Credit cards” include shopping credit receivables, card loans, etc.

(d) Information of securitization exposure retained or purchased
─Exposure by type of underlying asset─
(Billions of yen)On-balance sheet
Exposure on
resecuritizations
Off-balance sheet
Exposure on
resecuritizations
Total
Exposure on
resecuritizations
Exposure on
securitizations towhich a risk weightof 1,250% isapplied
Exposure whose
underlying assets
are overseas
assets

As of March 31, 2015
Lease
Account
payment
and note
receivables
receivables

Creditcards

Residential
mortgage
loans

Auto
loans

¥81.9

¥-

¥20.7

¥50.2

¥542.3

-

-

-

-

-

Real
estateOthersTotal¥-¥106.9¥802.1

-

-

-

108.5
-

-

42.8
-

-

145.9
-

-

36.6

-

333.9
-

¥190.4

¥-

¥63.5

¥50.2

¥688.2¥-¥143.6¥1,136.0

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

135.3

-

63.1

8.1

379.7

-

110.9

697.3

(Billions of yen)On-balance sheet
Exposure on
resecuritizations
Off-balance sheet
Exposure on
resecuritizations
Total
Exposure on
resecuritizations
Exposure on
securitizations towhich a risk weightof 1,250% isapplied
Exposure whose
underlying assets
are overseas
assets
Notes:

As of March 31, 2014
Lease
Account
payment
and note
receivables
receivables

Creditcards

Residential
mortgage
loans

Auto
loans

¥35.8

¥-

¥13.0

¥61.3

-

-

-

75.4

-

-

Real
estateOthersTotal¥471.2¥-¥70.2¥651.6

-

-

-

-

-

46.6

-

111.8

-

2.2

236.1

-

-

-

-

-

-

-

¥111.2

¥-

¥59.7

¥61.3

¥583.0¥-¥72.4¥887.8

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

58.3

-

56.6

11.7

257.1

-

60.6

444.4

1. Securitization exposure retained or purchased includes unused portions of securitization programs that are subject to allocation of required capital.
2. Classification based on type of underlying assets is conducted according to the principal underlying asset type for each transaction. Transactions that are difficult toclassify are included under “Others.”
3. Credit cards” include shopping credit receivables, card loans, etc.

293

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

4. The classification of transactions of which the underlying assets are overseas assets is conducted according to the principal underlying assets of each transaction.
5. “Exposure on resecuritizations” as of both March 31, 2014 and 2015 are classified following Article 1, Paragraph 2-2 of the FSA Notice No. 20 (hereinafter the same).

─Exposure by risk weight category─(Billions of yen)
As of March 31, 2015

Risk
weightUp to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Less
than1,250%
1,250%

Total

Onbalance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations¥782.9
14.9
2.5
1.7
-

¥-

¥333.9-¥-¥1,116.8
14.9
2.5
1.7
-

¥-

¥802.1¥-¥333.9¥-¥1,136.0¥(Billions of yen)

As of March 31, 2014

Risk
weightTotal

Onbalance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations

Up to 20%¥631.1Up to 50%
9.7
Up to 100%
9.8
Up to 250%
1.0
Up to 650%
Less than 1,250%
1,250%¥651.6¥¥-¥236.1¥236.1¥¥-¥867.39.7
9.8
1.0¥887.8¥¥-

─Amount of required capital by risk weight category─(Billions of yen)
As of March 31, 2015

Risk
weightTotal

294

Up to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Less than
1,250%
1,250%

Onbalance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations

¥4.5
0.4
0.1
0.1
-

¥-

¥1.9
-

¥-

¥6.4
0.4
0.1
0.1
-

¥-

¥5.2

¥-

¥1.9

¥-

¥7.1

¥-

(Billions of yen)
As of March 31, 2014

Risk
weightUp to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Less than
1,250%
1,250%

Total

Onbalance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations

¥3.9

¥-

¥1.4

¥-

¥5.3

¥-

0.3
0.5
0.1
-

-

-

-

0.3
0.5
0.1
-

-

-

-

-

-

-

-

¥4.9

¥-

¥1.4

¥-

¥6.3

¥-

─Credit risk mitigation against exposure on resecuritizations─(Billions of yen)
As of March 31, 2014

As of March 31, 2015

Risk
weightUp to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Over 650%

Total
Note:

¥-

¥-

¥-

¥-

The above table shows the exposure on resecuritizations based on the risk weight after taking into consideration the effect of method to mitigate credit risk.

○ Securitization exposure as investor (for calculation of credit risk-weighted assets)(e) Information of securitization exposure retained or purchased
─Exposure by type of underlying asset─
(Billions of yen)On-balance sheet
Exposure on
resecuritizations
Off-balance sheet
Exposure on
resecuritizations
Total
Exposure on
resecuritizations
Exposure on
securitizations towhich a risk weightof 1,250% is applied
Exposure whose
underlying assets
are overseas assets

As of March 31, 2015
Lease
payment
receivables
Corporate

Creditcards

Residential
mortgage
loans

Auto
loans

¥41.3

¥948.0¥236.8

¥9.2

-

9.7

-

120.2

-

-

Real
estateOthersTotal¥241.3¥31.2¥255.8¥1,763.7

-

11.9

-

-

21.7

89.0

-

32.9

0.1

14.8

257.2

-

-

-

-

-

-

-

¥161.5¥948.0¥325.9¥9.2¥274.2¥31.3¥270.6¥2,021.0

-

9.7

-

-

11.9

-

-

21.7

-

0.0

-

-

-

6.9

-

6.9

156.5

0.0

288.2

-

274.2

0.5

216.4

936.1

295

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(Billions of yen)On-balance sheet
Exposure on
resecuritizations
Off-balance sheet
Exposure on
resecuritizations
Total
Exposure on
resecuritizations
Exposure on
securitizations towhich a risk weightof 1,250% is applied
Exposure whose
underlying assets
are overseas assets
Notes:

As of March 31, 2014
Lease
payment
receivables
Corporate

Creditcards

Residential
mortgage
loans

Auto
loans

¥65.3

¥1,167.9

¥42.9

¥48.7

-

18.8

-

22.4

-

-

Real
estateOthersTotal¥138.4

¥80.9

¥73.7

¥1,618.3

-

70.8

-

-

89.6

116.2

6.8

2.8

0.3

3.6

152.3

0.3

-

-

-

-

-

0.3

¥87.8

¥1,167.9¥159.1¥55.6¥141.3

¥81.3

¥77.3

¥1,770.6

-

19.1

-

-

70.8

-

-

89.9

-

2.2

0.8

1.3

-

16.1

0.6

21.2

77.0

56.7

107.4

38.0

141.2

23.2

8.1

451.9

1. Subordinated contributions for managed collateralized loan obligations (“CLO”), etc., are included in the above table as exposure as investor even when theassets underlying those CLOs, etc., include exposures that were originated by us. Our subordinated contributions for those managed CLOs, etc. (a risk weight of
1,250% was applied for purpose of capital adequacy ratio calculation), were ¥0.8 :billions of March 31, 2014 and none as of March 31, 2015.
2. Classification based on type of underlying assets is conducted according to the principal underlying asset type for each transaction. Transactions that are difficult
to classify are included under “Others.”
3. “Credit cards” include shopping credit receivables, card loans, etc.
4. The classification of transactions of which the underlying assets are overseas assets is conducted according to the principal underlying assets of eachtransaction.
5. Securitization exposure retained or purchased whose risk transfer (hedge) effects are reflected in the calculation of capital adequacy ratio is categorized as
securitization exposure as originator.
6. “Exposure on resecuritizations” as of both March 31, 2014 and 2015 are classified following Article 1, Paragraph 2-2 of the FSA Notice No. 20 (hereinafter thesame).

─Exposure by risk weight category─(Billions of yen)
As of March 31, 2015

Risk
weightTotal

296

Up to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Less
than1,250%
1,250%

On-balance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations¥1,700.6
39.4
8.8
8.0

¥9.7
11.9
-

¥254.03.0¥-¥1,954.7
39.4
8.8
11.0

¥9.7
11.9
-

6.7
¥1,763.7

¥21.7

0.1
¥257.2¥-6.9¥2,021.0¥21.7

(Billions of yen)
As of March 31, 2014

Risk
weightTotal

Up to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Less than1,250%
1,250%

On-balance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

153.0
10.2
4.4
13.2
20.1
¥1,618.3

70.8
¥89.6

6.8
2.9
1.0
¥152.3¥0.3¥1,417.0¥18.8¥141.5

¥0.3

Total

Exposure on
resecuritizations

159.8
10.2
4.4
16.2
21.2
¥1,770.6

70.8
¥89.9

¥1,558.6

─Amount of required capital by risk weight category─¥19.1(Billions of yen)
As of March 31, 2015

Risk
weightTotal

Up to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Less
than1,250%
1,250%

Onbalance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations

¥10.1
1.0
0.7
2.2

¥0.1
0.3
-

¥1.7
0.8

¥-

¥11.9
1.0
0.7
3.0

¥0.1
0.3
-

6.7
¥20.8

¥0.4

0.1
¥2.7

¥-

6.9
¥23.6

¥0.4
(Billions of yen)

As of March 31, 2014

Risk
weightTotal

Up to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Less
than1,250%
1,250%

Onbalance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

4.3
0.7
0.9
5.0
-

2.0
-

0.1
0.8
-

-

¥9.5

20.9

¥41.5

¥0.3

-

¥2.4

¥0.8

1.0

¥2.9

¥-

Risk
weight
Total

Note:

Exposure on
resecuritizations

4.4
0.7
0.9
5.8
-

2.0
-

¥10.4

-

¥0.3

22.0

¥-

-

¥44.5

─Credit risk mitigation against exposure on resecuritizations─
Up to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Over 650%

Total

¥2.4

As of March 31, 2015

(Billions of yen)
As of March 31, 2014

¥¥-

¥12.5

¥12.5
-

The above table shows the exposure on resecuritizations based on the risk weight after taking into consideration the effect of method to mitigate credit risk.

297

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy○ Securitization exposure as originator (for calculation of market risk equivalent amounts)(f) Information by type of underlying assets

Traditional securitizations
Amount of underlying assets(a)Amount of exposures
securitized during the fiscal
year
Gains and losses recognizedon sales during the fiscal
year
Securitization subject to early
amortization treatment
Synthetic securitizations
Amount of underlying assets(b)Amount of exposures
securitized during the fiscal
year
Gains and losses recognizedon sales during the fiscal
year
Total amount of underlying
assets (a)+(b)Creditcards(Billions of yen)
As of, or for the fiscal year ended, March 31, 2015
Residential
LeasemortgageAutopayment
CorporReal
loans
loans
receivables
ate
estateSecuritization
products

Total

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

(Billions of yen)

Traditional securitizations
Amount of underlying assets(a)Amount of exposures
securitized during the fiscal
year
Gains and losses recognizedon sales during the fiscal
year
Securitization subject to early
amortization treatment
Synthetic securitizations
Amount of underlying assets(b)Amount of exposures
securitized during the fiscal
year
Gains and losses recognizedon sales during the fiscal
year
Total amount of underlying
assets (a)+(b)
Note:

298

Creditcards

As of, or for the fiscal year ended, March 31, 2014
Residential
LeasemortgageAutopayment
CorporReal
loans
loans
receivables
ate
estateSecuritization
products

Total

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

10.0

-

-

10.0

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

¥-

¥-

¥-

¥-

¥10.0

¥-

¥-

¥10.0

Classification based on type of underlying assets is conducted according to the principal underlying asset type for each transaction.

─Exposure intended to be securitized─

Exposure intended to be
securitized

Creditcards¥-(Billions of yen)
Residential
mortgage
loans

¥-

Auto
loans

As of March 31, 2015
Lease
payment
Corporreceivables
ate

Auto
loans

As of March 31, 2014
Lease
payment
Corporreceivables
ate

¥-

¥-

¥-

Real
estate¥-Securitization
products

¥-

Total

¥-

(Billions of yen)

Exposure intended to be
securitized

Creditcards¥-

Residential
mortgage
loans

¥-

¥-

¥-

¥-

Real
estate¥-Securitization
products

¥-

Total

¥-

(g) Information of securitization exposure retained or purchased
─Exposure by type of underlying asset─
(Billions of yen)On-balance sheet
Exposure on
resecuritizations
Off-balance sheet
Exposure on
resecuritizations
Total
Exposure on
resecuritizations
Exposure on securitizations
to which a risk weight of
100% is applied
Exposure whose underlying
assets are overseas
assetsCreditcards

Residential
mortgage
loans

Auto
loans

-

-

-

¥-

¥-

¥-

As of March 31, 2015
Lease
payment
receivables
CorporateRealestateSecuritization
products

Total

¥-

¥-

¥-

¥-

¥-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

(Billions of yen)On-balance sheet
Exposure on
resecuritizations
Off-balance sheet
Exposure on
resecuritizations
Total
Exposure on
resecuritizations
Exposure on securitizations
to which a risk weight of
100% is applied
Exposure whose underlying
assets are overseas
assets
Notes:

Creditcards

Residential
mortgage
loans

Auto
loans

-

-

-

¥-

¥-

¥-

As of March 31, 2014
Lease
payment
receivables
CorporateRealestateSecuritization
products

¥-

¥0.0

¥-

Total

¥-

¥0.0

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

¥-

¥-

¥-

¥-

¥0.0

¥-

¥-

¥0.0

-

-

-

-

-

-

-

-

-

-

-

-

0.0

-

-

0.0

-

-

-

-

0.0

-

-

0.0

1. Classification based on type of underlying asset is conducted according to the principal underlying asset type for each transaction.
2. “Exposure whose underlying assets are overseas assets” is classified based on the principal underlying asset type for each transaction.

299

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

─Exposure by risk capital charge category─(Billions of yen)
As of March 31, 2015

Risk
capitalchargeOn-balance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations

Up to 1.6%

¥-

¥-

¥-

¥-

¥-

¥-

Up to 4%

¥-

¥-

¥-

¥-

¥-

¥-

Up to 8%Up to 20%
Up to 52%
Less than 100%
100%

Total

(Billions of yen)
As of March 31, 2014

Risk
capitalchargeUp to 1.6%
Up to 4%Up to 8%Up to 20%
Up to 52%
Less than 100%
100%

Total

On-balance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations

¥-

¥-

¥-

¥-

¥-

¥-

0.0
¥0.0

¥-

¥-

¥-

0.0
¥0.0

¥-

─Amount of required capital by risk capital charge category─(Billions of yen)
As of March 31, 2015

Risk
capitalchargeTotal

300

On-balance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations

Up to 1.6%

¥-

¥-

¥-

¥-

¥-

¥-

Up to 4%

-

-

-

-

-

-

¥-

¥-

¥-

¥-

¥-

¥-

Up to 8%Up to 20%
Up to 52%
Less than
100%
100%

(Billions of yen)
As of March 31, 2014

Risk
capitalchargeUp to 1.6%
Up to 4%Up to 8%Up to 20%
Up to 52%
Less than
100%
100%

Total

On-balance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations

¥-

¥-

¥-

¥-

¥-

¥-

-

-

-

-

-

-

0.0
¥0.0

¥-

¥-

¥-

0.0
¥0.0

¥-

─Subject to Comprehensive Risk Measure─(Billions of yen)
As of March 31, 2015
Securitizations
Resecuritizations

Total amount of securitization exposure
Total amount of required capital

¥-

¥-

¥-

¥-

─Subject to Comprehensive Risk Measure─(Billions of yen)
As of March 31, 2014
Securitizations
Resecuritizations

Total amount of securitization exposure
Total amount of required capital

¥-

¥-

¥-

¥-

─Capital increase due to securitization transactions─(Billions of yen)

Capital increase due tosecuritizationtransactions

Creditcards

Residential
mortgage
loans

Auto
loans

-

-

-

As of March 31, 2015
Lease
payment
receivables
Corporate

-

-

Real
estateSecuritization
products

Total

-

-

-

(Billions of yen)

Capital increase due tosecuritizationtransactions

Creditcards

Residential
mortgage
loans

Auto
loans

-

-

-

As of March 31, 2014
Lease
payment
receivables
Corporate

-

-

Real
estateSecuritization
products

Total

-

-

-

301

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy○ Securitization exposure as sponsor of securitization programs (ABCP/ABL) (for calculation of market risk
equivalent amounts)(h) Information by type of underlying assets

Amount of underlying
assetsEstimated loss amountrelated to underlying
assets during the fiscal
year
Amount of exposures
securitized during the
fiscal year

(Billions of yen)
As of, or for the fiscal year ended, March 31, 2015
Lease
Account
Autopayment
and noteReal
loans
receivables
receivables
estateCreditcards

Residential
mortgage
loans

¥-

¥-

¥-

¥-

¥-

-

-

-

-

¥-

¥-

¥-

¥-

Others

Total

¥-

¥-

¥-

-

-

-

-

¥-

¥-

¥-

¥(Billions of yen)Amount of underlying
assetsEstimated loss amountrelated to underlying
assets during the fiscal
year
Amount of exposures
securitized during the
fiscal year

As of, or for the fiscal year ended, March 31, 2014
Lease
Account
Autopayment
and noteReal
loans
receivables
receivables
estateCreditcards

Residential
mortgageloans

Others

Total

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

-

-

-

-

-

-

-

-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

(i) Information of securitization exposure retained or purchased
─Exposure by type of underlying asset─
(Billions of yen)On-balance sheet
Exposure on
resecuritizations
Off-balance sheet
Exposure on
resecuritizations
Total
Exposure on
resecuritizations
Exposure on
securitizations towhich a risk weight of
100% is applied
Exposure whose
underlying assets areoverseas assets

302

Creditcards

Residential
mortgage
loans

Auto
loans

-

-

-

¥-

¥-

¥-

As of March 31, 2015
Lease
Account
payment
and note
receivables
receivables

RealestateOthers

Total

¥-

¥-

¥-

¥-

¥-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

(Billions of yen)On-balance sheet
Exposure on
resecuritizations
Off-balance sheet
Exposure on
resecuritizations
Total
Exposure on
resecuritizations
Exposure on
securitizations towhich a risk weight of
100% is applied
Exposure whose
underlying assets areoverseas assets

As of March 31, 2014
Lease
Account
payment
and note
receivables
receivables

Creditcards

Residential
mortgage
loans

Auto
loans

¥-

¥-

¥-

¥-

-

-

-

-

-

-

Real
estateOthers

Total

¥-

¥-

¥-

¥-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

─Exposure by risk capital charge category─(Billions of yen)
As of March 31, 2015

Risk
capitalchargeUp to 1.6%
Up to 4%Up to 8%Up to 20%
Up to 52%
Less than
100%
100%

Total

On-balance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥(Billions of yen)

As of March 31, 2014

Risk
capitalchargeTotal

Up to 1.6%
Up to 4%Up to 8%Up to 20%
Up to 52%
Less than
100%
100%

On-balance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

303

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

─Amount of required capital by risk capital charge category─(Billions of yen)
As of March 31, 2015

Risk
capitalchargeUp to 1.6%
Up to 4%Up to 8%Up to 20%
Up to 52%
Less than
100%
100%

Total

On-balance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

(Billions of yen)
As of March 31, 2014

Risk
capitalchargeTotal

304

Up to 1.6%
Up to 4%Up to 8%Up to 20%
Up to 52%
Less than
100%
100%

On-balance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

Securitization exposure as investor (for calculation of market risk equivalent amounts)(j) Information of securitization exposure retained or purchased
─Exposure by type of underlying asset─
(Billions of yen)On-balance sheet
Exposure on
resecuritizations
Off-balance sheet
Exposure on
resecuritizations
Total
Exposure on
resecuritizations
Exposure on
securitizations towhich a risk weightof 100% is applied
Exposure whose
underlying assets
are overseas assets

As of March 31, 2015
Lease
payment
receivables
Corporate

CreditCards

Residential
mortgage
loans

Auto
loans

¥0.2

¥2.5

¥12.2

¥-

-

-

-

-

-

-

Real
estateOthers

Total

¥1.0

¥3.8

¥9.3

¥29.2

-

-

-

2.7

2.7

-

-

-

-

-

-

-

-

-

-

-

-

-

¥0.2

¥2.5

¥12.2

¥-

¥1.0

¥3.8

¥9.3

¥29.2

-

-

-

-

-

-

2.7

2.7

-

2.3

-

-

0.0

0.2

0.1

2.6

0.2

2.2

12.2

-

1.0

2.0

9.2

27.1

(Billions of yen)On-balance sheet
Exposure on
resecuritizations
Off-balance sheet
Exposure on
resecuritizations
Total
Exposure on
resecuritizations
Exposure on
securitizations towhich a risk weightof 100% is applied
Exposure whose
underlying assets
are overseas
assets
Notes:

As of March 31, 2014
Lease
payment
receivables
Corporate

CreditCards

Residential
mortgage
loans

Auto
loans

¥17.6

¥4.8

¥5.5

¥-

-

-

-

-

-

-

Real
estateOthers

Total

¥0.2

¥3.9

¥1.8

¥33.9

-

-

-

0.1

0.1

-

-

-

-

-

-

-

-

-

-

-

-

-

¥17.6

¥4.8

¥5.5

¥-

¥0.2

¥3.9

¥1.8

¥33.9

-

-

-

-

-

-

0.1

0.1

-

3.1

-

-

0.2

0.4

0.1

4.0

17.6

4.6

5.5

-

0.0

2.1

0.8

30.7

1. Classification based on type of underlying assets is conducted according to the principal underlying asset type for each transaction. Transactions that are
difficult to classify are included under “Others.”
2. “Credit cards” include shopping credit receivables, card loans, etc.
3. The classification of transactions of which the underlying assets are overseas assets is conducted according to the principal underlying assets of eachtransaction.
4. “Exposure on resecuritizations” are classified following Article 1, Paragraph 2-2 of the FSA Notice No. 20 (hereinafter the same).

305

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

─Exposure by risk capital charge category─(Billions of yen)
As of March 31, 2015

Risk
capitalchargeOn-balance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Up to 1.6%

¥19.6

¥-

¥19.6

1.7
3.7
1.4

¥0.9
0.5
1.0

¥-

Up to 4%

-

-

1.7
3.7
1.4

¥0.9
0.5
1.0

2.6
¥29.2

0.1
¥2.7

¥-

¥-

2.6
¥29.2

0.1
¥2.7

Up to 8%Up to 20%
Up to 52%
Less than
100%
100%

Total

Exposure on
resecuritizations(Billions of yen)
As of March 31, 2014

Up to 1.6%
Up to 4%
Risk
capitalchargeUp to 8%Up to 20%
Up to 52%
Less than
100%
100%

Total

On-balance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations

¥24.6
1.2
3.8
0.1

¥-

¥-

¥-

¥24.6
1.2
3.8
0.1

¥-

4.0
¥33.9

0.1
¥0.1

¥-

¥-

4.0
¥33.9

0.1
¥0.1

─Amount of required capital by risk capital charge category─(Billions of yen)
As of March 31, 2015

Risk
capitalchargeOn-balance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations

Up to 1.6%

¥0.3

¥-

¥-

¥-

¥0.3

¥-

Up to 4%

0.0
0.3
0.6

0.0
0.0
0.5

-

-

0.0
0.3
0.6

0.0
0.0
0.5

2.6
¥4.0

0.1
¥0.7

¥-

¥-

2.6
¥4.0

0.1
¥0.7

Up to 8%Up to 20%
Up to 52%
Less than
100%
100%

Total

306

(Billions of yen)
As of March 31, 2014

Risk
capitalchargeTotal

Up to 1.6%
Up to 4%Up to 8%Up to 20%
Up to 52%
Less than
100%
100%

On-balance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations

¥0.3
0.0
0.3
0.0
-

¥-

¥-

¥-

¥0.3
0.0
0.3
0.0
-

¥-

4.0
¥4.8

0.1
¥0.1

¥-

¥-

4.0
¥4.8

0.1
¥0.1

─Subject to Comprehensive Risk Measure─(Billions of yen)
As of March 31, 2015
Securitization
Resecuritiation

Total amount of securitization exposure
Total amount of required capital

¥¥-

¥¥-

(Billions of yen)
As of March 31, 2014
Securitization
Resecuritiation

Total amount of securitization exposure
Total amount of required capital

¥¥-

¥¥-

■ Market risk
See pages 100 to 104 for information regarding market risk.

■ Operational risk
See pages 105 to 108 for information regarding operational risk.

■ Equity exposure in banking book(14) Risk management related to equity exposure in banking book
With regard to equities in our banking book, we manage default risk through our credit risk management
structure and price fluctuation risk through our market risk management structure.
With regard to subsidiaries and related companies in which we invest, we manage their risks on aconsolidated basis, and manage them appropriately in accordance with their management classification.
In addition, securities, a part of equity exposure, are valued as follows: Japanese stocks with quoted market
prices are valued based on the average quoted market price over the month preceding the consolidatedbalance sheet date; other securities which have readily determinable fair values are valued at the quoted
market price if available, or otherwise based on their reasonable value at the consolidated balance sheet date(cost of securities sold is calculated primarily by the moving average method); and other securities the fairvalues of which are extremely difficult to determine are stated at acquisition cost or amortized cost anddetermined by the moving average method.

307

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(15) Status of equity exposure in banking book(a) Amounts stated in consolidated balance sheet(Billions of yen)
As of March 31, 2014
Consolidatedbalance sheet
amountFair value

As of March 31, 2015
Consolidatedbalance sheet
amountFair value

Exposure of listed stock, etc.
Other equity exposure
Total¥4,579.9¥4,711.1

306.1¥4,886.1¥3,479.2¥-

362.7¥3,841.9¥3,616.0-¥-

Note: The above figures include only Japanese and foreign stocks.

(b) Gains and losses on sales related to equity exposure(Billions of yen)
For the Fiscal year ended March 31, 2014

For the Fiscal year ended March 31, 2015

Sale of equity
exposureGainsandlosses on
sales

Gains onsales

¥143.7¥152.0Losses on
sales

Gains
and
losses on
sales

Gains onsales

Losses on
sales

¥8.3

¥81.5

¥87.4

¥5.9

Note: The above figures represent gains and losses on sales of stocks in our consolidated statement of income.

(c) Gains and losses from write-offs related to equity exposure
For the Fiscal year ended
March 31, 2015
Gains and losses from writeoffs

Write-offs of equity exposure(Billions of yen)
For the Fiscal year ended March 31,
2014
Gains and losses from write-offs¥ (5.3)¥ (5.3)

Note: The above figures represent gains and losses on devaluation of stocks in our consolidated statement of income.

(d) Unrealized gains and losses recognized in the consolidated balance sheet and not recognized in the
consolidated statement of income(Billions of yen)

As of March 31, 2015

Equity exposure

Net unrealized
gains

Unrealized
gains

Unrealized
lossesNet unrealized
gains

Unrealized
gains

Unrealized
losses¥2,331.7¥2,360.4¥28.6¥1,241.4¥1,332.3¥90.8

Note: The above figures include only Japanese and foreign stocks.

308

As of March 31, 2014

(e) Unrealized gains and losses not recognized in the consolidated balance sheet or in the consolidated statementof income(Billions of yen)

As of March 31, 2015

Equity exposure

As of March 31, 2014

Net

Unrealized
gains

Unrealized
lossesNet

Unrealized
gains

Unrealized
losses¥131.1¥139.1¥8.0¥136.8¥145.2¥8.3

Note: The above figures include only Japanese and foreign stocks.

(f) Equities exposure by portfolio classification
As of March 31, 2015

PD/LGD approach
Market-based approach (simple risk weight
method)Market-based approach (internal models
approach)Transitional measure applied
Total(Billions of yen)
As of March 31, 2014

¥4,831.4¥1,199.5

796.7

490.7

-

-

/
¥5,628.1

2,609.6¥4,299.9309

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy■Composition of Leverage Ratio(Millions of yen)
Correspon Correspon
ding line # ding line #on Baselon BaselIIIIII
disclosure disclosure
template
template(Table 2)(Table 1)

Item

On-balance sheet exposures (1)1On-balance sheet exposures before deducting adjustment items
1a
1 Total assets reported in the consolidated balance sheet
The amount of assets of subsidiaries that are not included in the1b2
scope of the leverage ratio on a consolidated basis (-)
The amount of assets of subsidiaries that are included in the scope of1c
7 the leverage ratio on a consolidated basis (except those included in
the total assets reported in the consolidated balance sheet)
The amount of assets that are deducted from the total assets reported
1d
3
in the consolidated balance sheet (except adjustment items) (-)
2
7 The amount of adjustment items pertaining to Tier1 capital (-)
3
Total on-balance sheet exposures
Exposures related to derivative transactions (2)4Replacement cost associated with derivatives transactions, etc.
5
Add-on amount associated with derivatives transactions, etc.
The amount of receivables arising from providing cash margin in
relation to derivatives transactions, etc.
The amount of receivables arising from providing cash margin,
6
provided where deducted from the consolidated balance sheet
pursuant to the operative accounting framework
The amount of deductions of receivables (out of those arising from7
providing cash variation margin) (-)
The amount of client-cleared trade exposures for which a bank8
holding company acting as a clearing member is not obliged to makeany indemnification (-)
9Adjusted effective notional amount of written credit derivatives
The amount of deductions from effective notional amount of written
10credit derivatives (-)
11
4 Total exposures related to derivative transactions
Exposures related to repo transactions (3)12The amount of assets related to repo transactions, etc
13
The amount of deductions from the assets above (line 12) (-)
14
The exposures for counterparty credit risk for repo transactions, etc
15
The exposures for agent repo transactions
16
5 Total exposures related to repo transactions, etc.
Exposures related to off-balance sheet transactions (4)17Notional amount of off-balance sheet transactions
The amount of adjustments for conversion in relation to18
off-balance sheet transactions (-)
19
6 Total exposures related to off-balance sheet transactions
Leverage ratio on a consolidated basis (5)20The amount of capital (Tier1 capital)
21
8 Total exposures ((a)+(b)+(c)+(d))
22Leverage ratio on a consolidated basis ((e)/(f))
310

As of March 31, 2015

¥161,631,157

189,684,749
28,053,591
645,302(a)¥160,985,855

2,942,592
5,912,591
723,193
144,073/2,446,530
2,163,910(b)¥10,005,070(c)

12,641,579
5,486,696
328,632/¥7,483,516
46,576,954
29,687,744(d)¥16,889,209

(e)
(f)

¥195,363,652

7,500,349

3.83%

■ Indicators for assessing Global Systemically Important Banks (G-SIBs)

Item
No.

1

2

3

4
5
6
7

8
9
10

Item
No.

11

12
Notes:

Description

Total exposures (= a + b + c + d):a. Counterparty exposure of derivatives contracts
b. Gross value of securities financing transactions (SFTs) and counterparty
exposure of SFTs
c. Other assets (other than assets specifically identified above and regulatory
adjustments to Tier 1 and CET1 capital under the fully phased-in Basel III
framework)
d. Notional amount of off-balance sheet items (other than derivatives
contracts and SFTs )Intra-financial system assets (= a + b + c + d):a. Funds deposited with or lent to other financial institutions and undrawn
committed lines extended to other financial institutions
b. Holdings of securities issued by other financial institutions (Note 1)
c. Net positive current exposure of SFTs with other financial institutions
d. Over-the-counter (OTC) derivatives with other financial institutions thathave a net positive fair value
Intra-financial system liabilities (=a + b + c):a. Deposits due to, and undrawn committed lines obtained from, otherfinancial institutions
b. Net negative current exposure of SFTs with other financial institutions
c. OTC derivatives with other financial institutions that have a net negative
fair value
Securities outstanding(Note 1)
Assets under custody
Notional amount of OTC derivatives
Held-for-trading(HFT) securities and available-for-sale(AFS) securities ,
excluding HFT and AFS securities that meet the definition of Level 1 assets
and Level 2 assets with haircuts (Note 2)
Level 3 assets (Note 3)
Cross-jurisdictional claims
Cross-jurisdictional liabilities

Description

Payments (settled through the BOJ-NET, the Japanese Banks' Payment
Clearing Network and other similar settlement systems, excluding intragroup
payments)
Underwritten transactions in debt and equity markets (Note 4)

As of March 31,
2015(Billions of yen)
As of March 31,
2014¥215,213.7¥192,609.0

10,080.9

8,643.1

21,344.4

12,596.1

28,259.0
138,937.1
1,115,373.0
10,234.5

24,210.5
144,710.9
1,058,347.6
9,578.8

1,416.7
44,114.4
31,864,2

1,482.2
35,165.0
22,889.7

For the fiscal
year ended
March 31, 2015

For the fiscal
year ended
March 31, 2014

¥6,782,567.1¥6,029,806.1

9,226.0

7,131.7

1. Securities refer to secured debt securities, senior unsecured debt securities, subordinated debt securities, commercial paper, certificate of deposits, and common
equities.
2. Level 1 and Level 2 assets with haircuts are defined in the Basel III Liquidity Coverage Ratio (LCR).
3. The amount is calculated in accordance with the U.S.GAAP.
4. This refers to underwriting of securities defined article 2 paragraph 8 item 6 of the Financial Instruments and Exchange Act.

311

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy■ Compensation of directors, corporate auditors and employees(16) Qualitative disclosure(a) State of the organizational system relating to compensation of “Subject directors, corporate auditors andemployees” of Mizuho group
1. Scope of “Subject directors, corporate auditors and employees”“Subject directors, etc.,” and “Subject employees, etc.,” subject to disclosure as provided for in the FSA Notice(collectively, “Subject directors, corporate auditors and employees”) are as follows:(1) Scope of “Subject directors, etc.”“Subject directors, etc.,” are directors, executive officers as defined in the Companies Act and corporate auditors ofMizuho Financial Group, Inc. (“MHFG”). Outside directors and outside corporate auditors are excluded.
(2) Scope of “Subject employees, etc.”“Subject employees, etc.,” who are subject to disclosure are executive officers as defined in our internal regulations
and employees of MHFG and directors, corporate auditors and employees of its major consolidated subsidiaries, whoare “persons who receive large amounts of compensation” and “materially affect the operation of business or the stateof assets of Mizuho group or its major consolidated subsidiaries.”(a) Scope of “Major consolidated subsidiaries”
A “Major consolidated subsidiary” is a consolidated subsidiary, etc., (i) whose total assets as a percentage ofconsolidated total assets exceeds 2% of a bank holding company or bank and (ii) who materially affects the
management of our group. Specifically, those are Mizuho Bank, Ltd. (“MHBK”), Mizuho Bank (USA) and othersubsidiaries who conduct banking business similar to a branch of MHBK, Mizuho Trust & Banking Co., Ltd.
(“MHTB”), Mizuho Securities Co., Ltd. (“MHSC”), Mizuho Securities USA Inc. and Mizuho International Plc.
(b) Scope of “Persons who receive large amounts of compensation”
A “Person who receives large amounts of compensation” refers to a person who receives compensation thatexceeds the base amount from MHFG or its major consolidated subsidiaries. The base amount at MHFG has been
set at ¥50 million. Such base amount has been set based on the average amounts of the compensation of
directors, executive officers as defined in the Companies Act and corporate auditors of MHFG, MHBK and MHTB
for the last three fiscal years (excluding persons who resigned or retired during each of such fiscal years), taking
into account fluctuations in amounts of compensation over past fiscal years. The preceding base amount has been
adopted as the common base in order to unify the selection criteria of persons who receive large amounts ofcompensation at each of the companies in this paragraph.
(c) Scope of “Persons who materially affect the operation of business or the state of assets of Mizuho group”
A “Person who materially affects the operation of business or the state of assets of Mizuho group” means a person
who exerts significant influence on the operation of the business of MHFG or a major consolidated subsidiarythrough his or her work in conducting transactions or management, or who materially affects the state of assets byincurring losses on transactions. Specifically, it includes executive officers of MHFG and directors, corporate
auditors, executive officers, and market department employees of major consolidated subsidiaries.
2. Decisions on compensation of “Subject directors, corporate auditors, and employees”(1) Decisions on compensation of subject directors, etc.
MHFG has transformed into a Company with Three Committees from a Company with Board of Corporate Auditors inJune 2014, and has established the Compensation Committee as a statutory committee.
Prior to the transformation in June 2014, the Compensation Committee, which advised the board of directors of
MHFG, was composed of three outside directors and one in-house director (the President & CEO of MHFG). The
committee discussed, among other matters, basic policies to determine the compensation of directors andexecutive officers, the compensation system, and the amounts of compensation of MHFG, MHBK, MHTB and MHSC,
and the president & CEO of MHFG reported to the board of directors of MHFG and notified each of the above
companies of the results of the committee’s discussions. Based on the results of discussions by the Compensation
Committee of MHFG, each of the above companies, including MHFG, decided its own policies in determining
compensation for directors and executive officers as defined in our internal regulations, compensation systems, and312

amounts of compensation.
After the transformation into a Company with Three Committees, the chairman of the statutory Compensation
Committee shall be an outside director, and in principle its members shall be appointed from among the outside
directors (or at least non-executive directors) in order to ensure objectivity and transparency in director andexecutive officer compensation. In 2014, all four members of the Compensation Committee, including the chairman,
were outside directors. The Compensation Committee shall determine the basic policy and compensation system fordirectors and executive officers of MHFG, MHBK, MHTB and MHSC, determine the compensation for each individual
director and executive officer of MHFG, and exercise approval rights in MHFG for compensation for each individual
director of MHBK, MHTB, and MHSC.
In addition, the president of each of MHBK, MHTB and MHSC determines the amount of compensation for each
executive officer of its own.
The compensation of corporate auditors is decided through discussion among corporate auditors within the scope ofthe total amount of corporate auditors’ compensation decided at our ordinary general meeting of shareholders.
(2) Decisions on compensation of “Subject employees, etc.,”
Matters relating to executive officers as defined in the internal regulations of MHFG and directors, corporate auditorsand executive officers of MHBK, MHTB and MHSC are as set out in (1) Decisions on compensation of subject
directors and corporate auditors.
The compensation of subject employees, etc., is decided and paid in accordance with the salary and bonus systemestablished by MHFG and the major consolidated subsidiaries. Such system is designed and put into writing by thehuman resources departments of MHFG and the major consolidated subsidiaries which are independent of
departments furthering business. In terms of the compensation of overseas employees, each overseas office oroperation determines its own compensation policy based on local laws and regulations as well as employment
relationships.
3. Decisions on compensation of employees in risk management departments, compliance departments and internal audit
departments
The compensation of employees in risk management departments, compliance departments and internal audit
departments is decided in accordance with the salary and bonus system, and specific payment amounts are conclusively
determined in accordance with employee performance evaluations made by the relevant department and the humanresources department, independent from departments furthering business. Each employee of the risk management
departments, the compliance departments and the internal audit departments sets their own items for evaluation in theemployee performance evaluations, subject to the approval of their superiors. The degree to which the items are fulfilled
is evaluated taking into account the degree of the employee's contribution to risk-management, compliance and internal
audit.
4. Total amount of compensation paid to members of the compensation committee and number of meetings held by theCompensation Committee
Number of meetings held
(April 2014 – June 2014)
Before transition toCompany with Three
Committees

1

Number of meetings held
(June 2014 – March 2015)
After transition to Company
with Three Committees

6Note: The total amount of compensation is not set out above as it is not possible to separately calculate the amounts that are paid as consideration for the execution of duties by thecompensation committee.

(b) Evaluating the appropriateness of the designed operation of the system relating to compensation of subject
directors, corporate auditors, and employees of Mizuho group
1. Policies relating to compensation(1) Policies relating to compensation of subject directors, executive officers and corporate auditors
The “Mizuho Financial Group Compensation Policy” sets out the policy concerning the determination of compensationfor each individual director, executive officer as defined in the Companies Act and executive officer as defined in the313Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

internal regulations (“directors, etc.”) of MHFG MHBK, MHTB and MHSC.
a. Purpose of the Policy
Executive compensation for MHFG, MHBK, MHTB and MHSC pursuant to such policy aims to function as incentive
and compensation for each officer to exercise the designated function to the fullest with respect to striving to realize
management with consideration to value creation for various stakeholders and improve corporate value throughcontinuous and stable corporate growth based on our basic management policies under our Corporate Identity.
b. Basic Policy
The basic policy with respect to the determination concerning the individual compensation of directors, etc., of MHFG,MHBK, MHTB and MHSC is set forth below:(i) The executive compensation shall be based on the function and responsibility assigned to and the performance ofeach of the Directors, etc.
(ii) The executive compensation shall give consideration to improving corporate value and creating value for various
stakeholders over the medium to long term.
(iii) The executive compensation shall reflect the management environment and business performance of our group.
(iv) The executive compensation shall enable compensation for securing expert personnel such as professionals with acompetitive edge in the market.
(v) The compensation system and standards shall be reevaluated based on such factors as the economic and social
conditions and survey data with respect to management compensation provided by external specializedorganizations.
(vi) Regulations and guidelines, etc., concerning executive compensation, both in Japan and overseas, shall becomplied with.
c. Compensation System
I. The compensation system for executive officers (including executive officers who are directors), executive officers as
defined in our internal regulations, and directors and executive officers of MHBK, MHTB and MHSC responsible forbusiness execution (“Officers Responsible for Business Execution”) shall be separate from that for the non-executive
directors of MHFG and the directors of MHBK, MHTB and MHSC responsible for management supervision (“NonExecutive Officers Responsible for Management Supervision”).
II. The basic compensation system for Officers Responsible for Business Execution shall consist of basic salaries in theform of fixed compensation as well as variable compensation consisting of performance payments and performancebased stock compensation.
(i) The basic salaries shall factor in each officer’s function and responsibility in addition to the standard amount for eachposition.
(ii) The performance payments shall be monetary made as officers’ incentive to achieve the annual budget and ascompensation for their achievement. The payment thereof shall reflect each officer’s performance in addition to thestandard amount for each position.
(iii) The variable compensation intended for professional personnel, etc., appointed from outside the group shall be
individually designed based on the duties and characteristics of business responsibilities and market values, etc., ofeach officer, a system which enables certain amount or a portion of deferred payments and non-monetary payments
such as stock, as well as a decrease or forfeiture (clawback) of the deferred amount depending on the performance,
etc., of the company and such personnel.
III. The compensation for Non-Executive Officers Responsible for Management Supervision, in principle, shall be in theform of fixed compensation from the perspective of ensuring the effectiveness of the supervisory function and shallconsist of basic salaries and stock compensations.
(i) The basic salaries shall factor in each officer’s function and responsibilities in addition to the standard amount foreach of the full-time and part-time non-executive officers.
(ii) The stock compensation shall be paid to full-time internal directors excluding outside directors in accordance withthe standard amount based on each position. However, the payment standards shall not fluctuate depending oneach officer’s level of performance.
d. Compensation Determination Process
I. The Compensation Committee shall determine the determination policy of executive compensation for MHFG, MHBK,MHTB and MHSC. In addition, the Compensation Committee shall determine the compensation for each individual
director and executive officer of MHFG and approve at MHFG the compensation of each individual director of MHBK,MHTB and MHSC.

314

II. The President & Executive Officer, pursuant to this policy and regulations and detailed rules, etc., shall determine thecompensation for each executive officer, as defined in our internal regulations, of MHFG and approve at MHFG thecompensation of each individual executive officer of MHBK, MHTB and MHSC.
III. All members of the Compensation Committee shall be appointed from among outside directors (or at least nonexecutive directors) and the chairman thereof shall be an outside director.
IV. The Compensation Committee, where necessary, may have officers who are not members of the committee(including officers of MHBK, MHTB and MHSC) such as the President & Executive Officer and external experts, etc.,
attend its meetings and request their opinion.
The compensation of corporate auditors is discussed and decided among the corporate auditors themselves within
the scope of the total amount of corporate auditors’ compensation decided at our ordinary general meeting ofshareholders.
(2) Policies relating to compensation of subject employees, etc.
The policies relating to compensation for executive officers as defined in our internal regulations of MHFG, MHBK,MHTB and MHSC are also the same as the policies described in (1) Policies relating to compensation of subject
directors and corporate auditors above.
Compensation for other employees, etc., is determined in accordance with their duties and responsibilities. Somebonuses that are linked to performance are determined after comprehensively evaluating the employee’s contribution
to business, including any qualitative contributions to the organization, in a manner that does not place an excessiveemphasis on results.
2. The effect of the overall level of compensation, etc., on equity capital
The Compensation Committee of MHFG receives reports on the amount of compensation paid to directors and executive
officers of MHFG, MHBK, MHTB and MHSC in the previous fiscal year and confirms that there is no material effect on
the Mizuho group’s performance or the adequacy of equity capital.

(c) Compatibility between system for compensation of subject directors, corporate auditors, and employees ofMizuho group and risk management and matters relating to linking compensation with performance
The variable compensation intended for professional personnel, etc., appointed from outside the group shall be
individually designed based on the duties and characteristics of business responsibilities and market values, etc., of each
officer, a system which enables certain amount or a portion of deferred payments and non-monetary payments such as
stock, as well as a decrease or forfeiture (clawback) of the deferred amount depending on the performance, etc., of thecompany and such personnel.
There is no system of performance-linked compensation for corporate audit

315

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(17) Quantitative disclosure items(a) Matters relating to types and total amounts of, and payment method for, compensation of subject directors,
corporate auditors, and employees of Mizuho group─Total amount of the compensation, etc., of subject directors, corporate auditors and employees─
(Millions of yen)
For the fiscal year ended March 31, 2015

Subject directors andcorporate auditors(excluding outside
directors and outside
corporate auditors)
Subject employees, etc.
Overseas
employees, etc.

Base
compensation

Stockcompensationtype stock
options

OthersNumber of
persons

Total amount ofcompensation

Total amount of
fixed
compensation

15

¥873

¥854

¥591

¥262

¥1

234

19,941

9,175

7,910

565

698

192

17,106

7,120

6,348

74

697

(Millions of yen)
For the fiscal year ended March 31, 2015

Subject directors andcorporate auditors(excluding outside
directors and outside
corporate auditors)
Subject employees, etc.
Overseas employees,
etc.
Notes:

Total amount ofvariablecompensation

Base
compensation

Bonus

OthersRetirement benefits

Others

¥-

¥-

¥-

¥-

¥18

¥-

10,291-

10,287

3

-

471

9,579

-

9,575

3

-

406

1. Amounts of compensation of subject directors and corporate auditors include amounts of compensation received for duties performed as a director or corporate auditor of a major consolidated
subsidiary.
2. Total amount of fixed compensation includes ¥827 million of deferred compensation that arose during the fiscal year ended March 31, 2015 (subject directors and corporate auditors: ¥262 million;
subject employees, etc. : ¥565 million). The amount of fixed compensation deferred prior to the fiscal year ended March 31, 2015 and paid during the fiscal year ended March 31, 2015 was ¥406
million (subject directors and corporate auditors: ¥227 million; subject employees, etc. : ¥178 million) and the outstanding amount of deferred fixed compensation as of March 31, 2015 was ¥2,050
million (subject directors and corporate auditors: ¥598 million; subject employees, etc. : ¥1,451 million).
3. Total amount of variable compensation includes ¥2,591 million of deferred compensation that arose during the fiscal year ended March 31, 2015, all of which was for Subject Employees, etc., andcould in the future be taken back in the event of poor business results or other detrimental factors. The amount of variable compensation deferred prior to the fiscal year ended March 31, 2015 andpaid during the fiscal year ended March 31, 2015 was ¥998 million (subject employees, etc. : ¥998 million) and the outstanding amount of deferred variable compensation as of March 31, 2015 was¥3,887 million (subject employees, etc. : ¥3,887 million).
4. Total amount of compensation for subject employees, etc., includes ¥170 million of allowance for termination and resignation (number of subject persons: 3), multi-year guarantees of bonus of ¥284
million (number of subject persons: 4) , retirement allowance of ¥10 million (number of subject persons: 1)and signing bonus of ¥244 million (number of subject persons: 16).
5. The exercise periods of the stock compensation-type stock options (stock acquisition rights) are as set out below. Under the stock option agreements, exercise of the options is postponed, evenduring the exercise period, until the time of retirement of the director or employee.

First Series of Stock Acquisition Rights of Mizuho Financial Group, Inc.
Second Series of Stock Acquisition Rights of Mizuho Financial Group, Inc.
Third Series of Stock Acquisition Rights of Mizuho Financial Group, Inc.
Fourth Series of Stock Acquisition Rights of Mizuho Financial Group, Inc.
Fifth Series of Stock Acquisition Rights of Mizuho Financial Group, Inc.
Sixth Series of Stock Acquisition Rights of Mizuho Financial Group, Inc.

Exercise Period
from February 17, 2009 to February 16, 2029
from September 28, 2009 to September 25, 2029
from August 27, 2010 to August 26, 2030
from December 9, 2011 to December 8, 2031
from September 3, 2012 to August 31, 2032
from February 18, 2014 to February 17, 2034

Seventh Series of Stock Acquisition Rights of Mizuho Financial Group, Inc.

from December 2, 2014 to December 1, 2034(b)Other relevant matters relating to our system of compensation for subject directors, corporate auditors andemployees of Mizuho group
Not applicable, other than those covered in the above.
316

Contact Information
Mizuho Financial Group

Mizuho Bank

Mizuho Trust & Banking

1-5-5, Otemachi, Chiyoda-ku,
Tokyo 100-8176, Japan
Tel. +81-(0)3-5224-1111

1-5-5, Otemachi, Chiyoda-ku,
Tokyo 100-8176, Japan
Tel. +81-(0)3-3214-1111

1-2-1, Yaesu, Chuo-ku,
Tokyo 103-8670, Japan
Tel. +81-(0)3-3278-8111

Printed in Japan