THE SHIMIZU BANK,LTD.

Annual Report 2020

ProfileThe Shimizu Bank, Ltd. was established in
1928 with the merger of six banks and has
always been a valuable partner of the local
community.
The Bank has its headquarters in Shizuoka City,
which has the Shimizu Port, the largest in theprefecture.
Shimizu Port, located halfway between
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role in international trade and economic
development.
We will provide customers with a wide range
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expansion as a customer-friendly bank andcontribute to the development of the local
community.

Bank Data
Head Office

As of March 31, 20

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

July 1, 1928
Date of Incorporation:-3¥10,816,260,000
Paid-up Capital:
Number of Branches:78
Number of Sub-branches:1
Number of Employees:
9
Consolidated Capital Adequacy Ratio(based on domestic standards): %Non-Consolidated Capital Adequacy Ratio(based on domestic standards): %Consolidated Subsidiaries

As of June 30, 20(Millions of Yen)

Ratio of Voting
Right

Ratio of Voting Right
Other Group
Companies

Established

The Shimizu Business Service Co., Ltd.

10100.00%−December 10,1981

Calculating cash

The Shimizugin Career Up Co., Ltd.

30

100.00%−

October 22,1990

Delegation of personnel

The Shimizu General Maintenance Co., Ltd.

30

100.00%−December 24,1991

Management of real estate

The Shimizu Regional Economy Research Center, INC

12100.00%−

October 28,1965

Financial and economic
research services,Training

The Shimizu Credit Guarantee Co., Ltd.

50

100.00%−November 1,1978

Credit guaranteeing

The Shimizu Lease and Card Co., Ltd.

60

15.13%

48.32%

April 14,1999

Leasing, Credit card

The Shimizu General Computer Service Co., Ltd.

30

5.00%

50.00%

July 1,1989

Calculation operations

Name of Company

Capital[]Line of Business

THE SHIMIZU BANK,LTD.
1

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Katsuichiro Toyoshima
&KDLrPDn<asuhiro ,ZD\Dma
President

THE SHIMIZU BANK,LTD.
2

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THE SHIMIZU BANK,LTD.
3

Support for Overseas Business Development
Strengthening Support for Overseas Expansion
In July 2017, the Bank opened its first-ever overseas branch, the Bangkok
Representative Office, in Thailand. In addition, in February 2018, we concluded a businesscooperation agreement with the Bangkok Bank, one of Thailand’s major commercial privatesector banks, strengthening our structure for supporting customers in their expansion overseas.
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RIVXSSRUWPHDVXUHVNetwork of Support for Overseas Expansion

The Shimizu Bank Ltd.

(Mexico)Estadode Aguascalientes

Vietcom Bank
(Vietnam)

Estado de Jalisco
Bank of Communication(China)Estadode Nuevo León

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

Estadode Guarajuato

Metropolitan Bank
(Philippines)

Bank Negara Indonesia(Indonesia)

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

Local Financial Institutions

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

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

THE SHIMIZU BANK,LTD.
4

Mt.Fuji -Our Symbol-

Mt. Fuji and The Shimizu Bank
Mt. Fuji is the highest mountain in Japan, located on the border of Shizuoka
prefecture, and is widely known as a symbol of Japan, at home and abroad, for its
elegant appearance.
We have published a calendar about Mt. Fuji every year since 1969 and have beenusing a corporate logo since 1974 whose design includes images of Mt. Fuji and Gulf
of Suruga.
In June of 2013, Mt. Fuji was registered as a World Heritage Site.
In line with the growing recognition of Mt. Fuji across the world, we intend to further
VWUHQJWKHQGHPRQVWUDWHWKHVLJQLÀFDQFHRIRXUH[LVWHQFHIRULQGLYLGXDOFXVWRPHUVTHE SHIMIZU BANK,LTD.
5

Summary of Business
Consolidated Results
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WR ELOOLRQ$VDUHVXOWDQRUGLQDU\ORVVRIELOOLRQZDVSRVWHG
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SHUVRQDOSHQVLRQLQVXUDQFHOHDGLQJWRDQLQFUHDVHRIELOOLRQRYHUWKHHQGRIWKHSUHYLRXVILVFDO\HDUWRELOOLRQ/RDQVDQGELOOVGLVFRXQWHGURVHE\ELOOLRQIURPWKHHQGRIWKHSUHYLRXVILVFDO\HDUWRELOOLRQDVDUHVXOWRIUHVSRQGLQJSURDFWLYHO\DVDUHJLRQDOILQDQFLDOLQVWLWXWLRQWRGHPDQGIURPFXVWRPHUVIRUIXQGLQJ
6HFXULWLHVGHFOLQHGE\ELOOLRQRYHUWKHHQGRIWKHSUHYLRXVILVFDO\HDUWRELOOLRQWKHUHVXOWRINHHSLQJDFORVHH\HRQPDUNHWIOXFWXDWLRQVZKLOHWDNLQJDIOH[LEOHDSSURDFKWRPDQDJHPHQW
(Millions of Yen)

Consolidated Five-years Summary
Ordinary Income
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Comprehensive Income
Total Net Assets
Total Assets¥29,Net Assets per Share in Yen
Net Income per Share in Yen
Consolidated Capital Adequacy Ratio (based on domestic standards)
Number of Employees

4,989
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Non-Consolidated Results
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(Millions of Yen)

Non-Consolidated Five-years Summary
Ordinary Income
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Capital Stock
Number of Shares Issued in Thousand Yen
Total Net Assets
Total Assets
Deposits
Loans and Bills Discounted
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8,670
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Dividends per Share in Yen
Dividends per Share at mid-term in Yen
Net Income per Share in Yen
Dividends Payment ratio
Non-Consolidated Capital Adequacy Ratio (based on domestic standards
Number of Employees

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Ordinary Income(Millionsof Yen)(Millionsof Yen)
,000

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

‐%
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AAA
AA
A
BBB

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Our Bank

A-

BB
B
CCC
CC
C
D

-

Credit Rating : A
Relevant Debt : long-term Preferred Debt
Credit Rating Agency :Japan Credit Rating Agency,Ltd.
(As of March 31, 20)THE SHIMIZU BANK,LTD.
6

Corporate Governance Structure
Fundamental Approach to Corporate Governance
At a time when companies are required to enhance corporate governance, the Shimizu Bank believes its mission is toperform business management fairly through delivering increased transparency to shareholders and customers.
To this end, it is necessary for us to bolster the functions of the Board of Directors, realize swift decision-making and develop
a framework to strictly monitor the business management execution.

1) Outline of our corporate governance system,Q DFFRUGDQFH ZLWK WKH UHVROXWLRQ WR FKDQJH WKH $UWLFOHV RI ,QFRUSRUDWLRQ SDVVHG DW WKH $QQXDO *HQHUDO 0HHWLQJ RI
6KDUHKROGHUVKHOGRQ-XQHWKH%DQNVZLWFKHGWRD&RPSDQ\ZLWKDQ$XGLW 6XSHUYLVRU\&RPPLWWHHV\VWHP7KH$XGLW6XSHUYLVRU\&RPPLWWHHFRPSRVHGRIIRXU'LUHFWRUVVHUYLQJDV$XGLW 6XSHUYLVRU\&RPPLWWHH0HPEHUVKDVEHHQHVWDEOLVKHGZKLFKFRQGXFWVDSSURSULDWHDXGLWVRIWKHEXVLQHVVH[HFXWLRQE\'LUHFWRUVOHDGLQJWRPRUHVXEVWDQWLDOFKHFNVRQPDQDJHPHQW
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EXVLQHVV VXFK DV E\ WDNLQJ GHFLVLRQV RQ LPSRUWDQW PDQDJHPHQW VWUDWHJLHV HWF EDVHG RQ RXU EXVLQHVV SKLORVRSK\ 2UGLQDU\PHHWLQJVRIWKH%RDUGRI'LUHFWRUVDUHKHOGRQFHDPRQWKDVDUXOHLQDGGLWLRQWRZKLFKH[WUDRUGLQDU\PHHWLQJVRIWKH%RDUGRI
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REMHFWLYLW\ DQG H[SODQDWRU\ IXQFWLRQV RI WKH %RDUG RI 'LUHFWRUV WKURXJK WKH DSSURSULDWH LQYROYHPHQW DQG FRXQFLO RI WKH,QGHSHQGHQW 2XWVLGH 'LUHFWRUV ZKHQ FRQVLGHULQJ SDUWLFXODUO\ LPSRUWDQW PDWWHUV VXFK DV WKH QRPLQDWLRQ DQG UHPXQHUDWLRQ RI
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,QGHSHQGHQW2XWVLGH'LUHFWRUVDQGWKH&RPPLWWHHLVFRPSRVHGHQWLUHO\RI'LUHFWRUVZLWKUHSUHVHQWDWLYHULJKWVRU,QGHSHQGHQW
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The Shimizu Bank has in place three categories of management meeting, namely, Ordinary Management Meeting,Expanded Management Meeting and Project Meeting. These serve as consultation bodies designed to haveoperations executed nimbly and with a mutual restraint function. An Ordinary Management Meeting is held daily, inprinciple, to bolster governance and expedite decision-making. To deliberate and resolve more rigorously, an
Expanded Management Meeting is held twice-monthly, in principle, under specified themes such as: 1) loan screening
aimed at reinforcing credit risk control; 2) revenue management for controlling revenue and examining revenue
improvement measures; 3) risk management intended to oversee various risks comprehensively; 4) compliance
control designed to ensure strict compliance with laws and regulations and check and give guidance RQVXFKFRPSOLDQFH
 V\VWHP VWUDWHJLHV WR GHOLEHUDWH RQ V\VWHP VWUDWHJLHV IRU RSHUDWLRQV   ILQDQFLDO UHSRUWLQJ WR GHWHUPLQH D ILQDQFLDO FORVLQJ
SROLF\ DQG   ILQDQFLDO IDFLOLWDWLRQ LQ ZKLFK WR LGHQWLI\ DQDO\]H DVVHVV DQG YHULI\ WKH VWDWXV RI ILQDQFLDO IDFLOLWDWLRQ FRQWUROWDUJHWLQJ VPDOO WR PHGLXPVL]HG HQWHUSULVHV $ 3URMHFW 0HHWLQJ LV DOORZHG WR EH KHOG DQ\ WLPH DV D PHHWLQJ WR UHVROYH
GHOLEHUDWH RQDVSHFLILFVXEMHFWFRQWLQXRXVO\IRUDOLPLWHGSHULRGRIWLPHand an Ordinary Management Meeting is supposed
to resolve on the subjects and operation for such meeting each time. An Ordinary Management Meeting is chaired by the
President and its other members are determined by the Board of Directors, based on a proposal by the Chair. The Chairman
attends such meeting as an observer according WRWKHDJHQGD$Q([SDQGHG0DQDJHPHQW0HHWLQJLVDWWHQGHGE\RIILFHUVFRPSULVLQJ PHPEHUV RI DQ 2UGLQDU\ Management Meeting as well as employees who are designated separately insubsidiary rules on a subject-by-subject basis. Such meeting is attended by full-time Corporate Auditors as observers. A
Project Meeting is attended E\ RIILFHUV PRUH RU OHVV LGHQWLFDO WR DWWHQGHHV RI DQ 2UGLQDU\ 0DQDJHPHQW 0HHWLQJ (DFK0DQDJHPHQW0HHWLQJLVregarded as a body designed to resolve and deliberate at the commission of the Board of Directors,
so minutes are created on the resolutions before being reported to the Board.
The ALM Earnings Management Committee, established as a body to comprehensively manage assets and liabilities and be
involved in the formulation of strategic goals, seeks to bolster the framework for earnings management and asset liability
management (ALM).

System to monitor business execution and management
General Meeting of Shareholders
Election and dismissal

Election and dismissal

Election and dismissal
Collaborate

Board of Directors
$XGLW 6XSHUYLVRU\&RPPLWWHH
Directors serving as Audit &Directors serving as Audit &Supervisory Committee Members

SupervisoryCommittee Members&RQVXOWManagement
Committee,QYROYHDQGDGYLVHCollaborate

1RPLQDWLRQDQG5HPXQHUDWLRQ$GYLVRU\&RPPLWWHH$FFoXQWLQJ Duditors

,QVWUXFWDQGUHSRUW,QWHUQDO$XGLW'LYLVLRQCollaborate

Directors in charge
Division management
Executive Officers
Executionof division operations

Accounting audit

THE SHIMIZU BANK,LTD.
72) State of development of internal control system
In addition to prescribing the following Basic Policy on Internal Control System, the Bank strives to develop its internal control system.
a. System to ensure that duty execution by Directors and employees adheres to laws and regulations as well as theArticles ofIncorporation• Establish the Compliance Manual to specify laws, regulations and rules that directors and employees must observe• Install a business unit charged with supervising compliance and strive to develop the compliance framework of theBank and theShimizu Bank Group as a whole and ascertain compliance issues. Hold an Expanded ManagementMeeting monthly on the themeof compliance as a meeting chaired by the President and attended by our corporatelawyer• Install compliance managers and administrators at the headquarters and branches; they are to verify the conformityof routine
operations to laws. Establish the Compliance Reporting Scheme to prevent any violation from occurringwith respect to the user ofthis reporting scheme, management will not take any action detrimental to the reportingRIILFHUVXFKDVDGLVFLSOLQDU\DFWLRQDQG
HPSOR\HHHYDOXDWLRQGRZQJUDGHRQDFFRXQWRIWKHUHSRUWLQJ
• 7KH$ZDUGVDQG'LVFLSOLQH&RPPLWWHHWDNHVDSHQDOW\DFWLRQDJDLQVWDQHPSOR\HHIRUDYLRODWLRQRIODZVDQGUHJXODWLRQVRUWKH$UWLFOHVRI,QFRUSRUDWLRQ$VIRUDYLRODWLRQRIODZVDQGUHJXODWLRQVRUWKH$UWLFOHVRI,QFRUSRUDWLRQE\D'LUHFWRUWKH0DQDJHPHQW&RPPLWWHHLQYHVWLJDWHVWKHYLRODWLRQSXUVXDQWWRWKH´'LUHFWRU&RPSOLDQFH5XOHVµIROORZLQJZKLFKWKH%RDUGRI'LUHFWRUVUHVROYHVWRWDNHVSHFLILFDFWLRQ• The Bank will battle determinedly against what are generally referred to in Japan as “anti-social forces” and anti-FRPPXQLW\JURXSVWKDWWKUHDWHQRUGHUDQGVHFXULW\LQORFDOFRPPXQLWLHVDQGZLOOQRWSURYLGHDQ\EHQHILWWRVXFKentities.
b. System for the storage and management of information on duty execution by Directors• We store and manage information on duty execution by Directors such as minutes of Board of Directors meetings andringi approval
letters in an appropriate manner pursuant to internal rules
c. Regulations and other systems for management of risk of loss
• To perform risk management appropriately, we establish the Integrated Risk Management Provisions before designatingdepartmentsin charge on a category-by-category basis, thereby building a system to manage various types of risks.
• We also install a department charged with performing risk supervision for the entire Bank. This department is to reporton the stateof various risks to the Board of Directors and the Management Committee, as required.
• In addition to establishing the Business Continuity Regulations for us to continue operations appropriately in anemergency, we will
respond swiftly and adequately, thus developing a system capable of minimizing effects on ourbusiness activities.
d 6\VWHPWRHQVXUHWKDW'LUHFWRUVH[HFXWHWKHLUGXWLHVHIILFLHQWO\• Directors H[FOXGLQJ'LUHFWRUVVHUYLQJDV$XGLW 6XSHUYLVRU\&RPPLWWHH0HPEHUV are to execute their duties according to theOrganization Regulations and the Job Authority Regulations.The Bank has the Management Committee in place as a body todeliberate and resolve within the scope assigned toit by the Board of Directors, and this committee is to expedite decision-making
for business execution.
• The personnel are to report to the Board of Directors on the state of progress for any matter resolved by the Board ofDirectors
every three months, thereby managing and ascertaining the progress until completion.
e. System to secure the appropriateness of operations at the corporate group comprising the Bank and its subsidiaries• We strive to secure the appropriateness of our operations with respect to compliance at the Shimizu Bank GroupFRPSDQLHVDQG
DGHTXDWHUHSRUWLQJWRWKH%DQNDVZHOODVWKHHIILFLHQF\RIRXUULVNPDQDJHPHQWDQGGXW\H[HFXWLRQTo this end, we install asupervision department to be charged with operating and managing the Shimizu Bank Groupcompanies. Moreover, weestablish the Shimizu Bank Group Operation and Management Regulations. Our groupcompanies are to submit reports to the
Bank and consult with it according to the List of Matters for Consultation andReporting by Group Companies.
• The Bank’s personnel are to visit our group companies and audit them, asrequired.
• The Bank and its group companies are to comply with accounting standards and other relevant laws and regulations,DQGGHYHORSDV\VWHPWRVHFXUHWKHWUXVWZRUWKLQHVVRIWKHLUILQDQFLDOUHSRUWLQJ
f. 0DWWHUVUHODWHGWRHPSOR\HHVZKRDUHREOLJHGWRDVVLVWZLWKWKHGXWLHVRIWKH$XGLW 6XSHUYLVRU\&RPPLWWHH• $WOHDVWRQHSHUVRQLVDVVLJQHGWRDVVLVWWKH$XGLW 6XSHUYLVRU\&RPPLWWHHLQLWVGXWLHV
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j. 0DWWHUVUHODWHGWRSROLFLHVIRUWKHSURFHVVLQJRIH[SHQVHVDQGREOLJDWLRQVDULVLQJIURPWKHH[HFXWLRQRIGXWLHVE\WKH$XGLW 6XSHUYLVRU\&RPPLWWHHVXFKDVSURFHGXUHVIRUSUHSD\PHQWRIH[SHQVHVRUIRUUHLPEXUVHPHQWDULVLQJIURPWKHH[HFXWLRQRIVDLGGXWLHV• :KHQDQ$XGLW 6XSHUYLVRU\&RPPLWWHH0HPEHUUHTXHVWVSUHSD\PHQWRIH[SHQVHVUHTXLUHGIRUWKHH[HFXWLRQRIGXWLHVRU
UHLPEXUVHPHQWHWFWKHH[SHQVHRUREOLJDWLRQLQTXHVWLRQVKDOOEHSURFHVVHGSURPSWO\

THE SHIMIZU BANK,LTD.
8

Compliance System
At the Shimizu Bank group, our awareness of our social responsibility and public duties has led us to make compliance a
top priority, building an effective compliance system that will help us earn the trust of our customers and the local
communities we share.
Our management in particular is actively engaged in compliance issues and is working with executives and employees ofall of the companies in our group to foster awareness on these issue and create a corporate culture in which"compliance is the foundation for everything."

Establishing a Framework for Compliance

For through compliance, the Shimizu Bank has created a ”Legal and Regulatory Compliance Policy” as our basic policy
for compliance in keeping with our management policy. This Compliance Policy is widely disseminated across the Shimizu
Bank group.
At monthly expanded management meetings, members of bank management including the president meet withoutside corporate lawyers to discuss matters concerning compliance.
,QDGGLWLRQZHKDYHHVWDEOLVKHGWKH/HJDO2IÀFHZLWKLQWKH&RUSRUDWH$GPLQLVWUDWLRQ'LYLVLRQWRVXSHUYLVHFRPSOLDQFH
DQGHQWUXVWHGWKDWRIÀFHZLWKFHQWUDOL]HGFRQWURORILQIRUPDWLRQSHUWDLQLQJWRFRPSOLDQFHLVVXHVDQGSURYLGLQJJXLGDQFHRQWKHODZVDQGUHJXODWLRQVRIÀFHUVDQGHPSOR\HHVPXVWREVHUYH
Furthermore, we have assigned individuals to be in charge of compliance at each division and branch to facilitate
FRRUGLQDWLRQZLWKWKHRIÀFHWKDWRYHUVHDVFRPSOLDQFH WKH/HJDO2IÀFH DQGH[KDXVWLYHO\HQIRUFHREVHUYDQFHRIODZVand regulations. The Shimizu Bank also assigns regional compliance supervisor and the like in order to properly addresscompliance issues in relevant divisions.

Corporate Culture Attaching Importance to Compliance

The Bank formulated the Compliance Manual which illustrates the Ethics Charter and laws and regulations required to be
REVHUYHGDQGZKLFKVSHFLÀFDOO\RXWOLQHVKRZWRGHDOZLWKDQ\LOOHJDODFWGLVFRYHUHG(DFKWLPHODZVRUUHJXODWLRQVDUH
amended, the provisions of the Compliance Manual are revised with the approval of the Board of Directors. We ensurethat the Compliance Manual is adhered to in the Bank by organizing training and in-branch learning programs.
This manual, in electronic format, is allowed to be viewed by any employee via a PC at all times. Thus, we seek to foster
FRPSOLDQFHDZDUHQHVVLQWKHRUJDQL]DWLRQZKLOHVWULYLQJWRFDXVHVSHFLÀFDFWLRQVWREHWDNHQ
Each fiscal year, we formulate the Compliance Program, a specific action plan aimed at securing the state ofcompliance in the Bank. Thus, we engage in effective monitoring activities while developing a compliance framework.
6SHFLÀFDOO\EDVHGRQRXUWUDLQLQJSURJUDPVDOO6KLPL]X%DQNHPSOR\HHVWDNHHOHDUQLQJEDVHGFRPSOLDQFHVWXG\DQG
testing courses, among other efforts to grasp rules including various laws and regulations.
The results of such courses are analyzed by the Compliance Supervisory Department before being reported to the
Expanded Management Meeting. Then, the personnel discuss measures such as those for preventing any violation of laws
DQGUHJXODWLRQVDQGVWRSSLQJWKHLUUHFXUUHQFHEHIRUHUHÁHFWLQJVXFKPHDVXUHVLQRXUEXVLQHVVH[HFXWLRQLQDPRYHWR
further bolster our compliance system.
The Shimizu Bank Group has in place the Compliance Reporting Scheme, a system in which to report any issue or
SUREOHPGHWHFWHG:HVHFXUHGQHXWUDOLW\IRUWKHV\VWHPE\DUUDQJLQJIRUWKH*HQHUDO0DQDJHURIWKH/HJDO2IÀFHDWWKH
Corporate Administration Division and our corporate lawyers to serve as reporting desks. Moreover, we built a platformto prevent any user of this reporting scheme from being subjected to detrimental treatment on account of the reporting,thereby striving to avert misconduct and fraud.

Charter of Ethics
1. Establishing trust
In order to maintain the structure of credit and to smooth financial processes in the regions, while remaining awareof the social responsibility of banks and the gravity of their public mission, we will conduct business in a sound andappropriate manner, with the goal of establishing unshakable trust.

2. Contributing to the economy and to society by providing high-quality services
In addition to the function of providing infrastructure to support economic activity that we have fulfilled from the
beginning, we contribute to the economy and to society, both in Japan and overseas, by providing high-qualityÀQDQFLDOVHUYLFHVWKDWUHVSRQGWRWKHQHHGVRIXVHUV

3. Compliance with laws, regulations and rules
We comply with laws and regulations as well as with internal rules in the course of executing our business. We respectsocial rules, perform corporate activities with conscientiousness, integrity and fairness.

4. Blocking all relationships with anti-social forces
We resolutely reject illegal demands made by antisocial forces of the kind that threaten the safety and order of society,and will eliminate any and all relationships with them.

5. Proactive communication
In order to obtain wide-ranging understanding and trust from society at large, we will proactively and fairly
disclose business information, make every effort to ensure the soundness of business, and strive to establish broad
communications between the Bank and society.

THE SHIMIZU BANK,LTD.
9

Board of Directors■ Complpliiance System

Directors not serving as Audit &Supervisory Committee Members$XGLW 6XSHUYLVRU\&RPPLWWHH$XGLWDQGVXSHUYLVLRQSupervisory Committee Members

Instruction

ReportInspection Result
ReportManagement Committee
Instruction

ReportConsult

Corporate Lawyers

Corporate Administration Division Legal OfficeInspection

Internal Audit Division( Compliance Supervisory Department )( Compliance Report System )Centralized Control of Compliance( Anti-social Forces Treatment Department )Anti Money Laundaring'Wire-the-money scam'Legislative Remedy

Inspection

Issues Related to Each Works

Report, Contact, Consult

Divisions in Head Office

Operations Division
Report,Contact,
Consult&ROODERUDWH

Directors serving as Audit &Discuss

Consult and Compliants treatment
Financial ADR Treatment
Disclose personal Information

Branch Advisory Division

Discuss

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

Discuss

Inspection

Markets andInternational Division
Report, Contact, Consult

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

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

Branches, Divisions, andGroup Companies, etc

Systems Targeting Anti-social Forces
Due to their public nature and critical economic function, banks are
UHTXLUHGWRH[FOXGHDQWLVRFLDOIRUFHVIURPÀQDQFLDOWUDQVDFWLRQV)RUWKLV
reason, the Shimizu Bank has created a basic policy that we will standÀUPO\DJDLQVWDQWLVRFLDOIRUFHVZKLFKSRVHDWKUHDWWRWKHRUGHUDQG
safety of civic life, and will not provide any favors to such forces.
In addition, at the Shimizu Bank we have given the Corporate
Administration Division the task of collecting, analyzing, and centrally
managing information pertaining to anti-social forces, and haveestablished a system whereby the bank systematically addresses such
issues and excludes anti-social forces from business transactions incooperation with external special agencies including law enforcement
and the national and prefectural centers for the elimination of
boryokudan (violent crime syndicates).
Furthermore, in order to make it clear that we exclude anti-social forcesfrom our business, we have also introduced clauses regarding theexclusion of “boryokudan” crime syndicates in basic loan agreements
and in our rules concerning deposits and other services. We require all
FXVWRPHUVWRFRPSO\ZLWKDQDJUHHPHQWE\ZKLFKWKH\H[SUHVVDQGDIÀUPthat they are not associated with any anti-social forces.

THE SHIMIZU BANK,LTD.
10

Risk Management System%HFDXVHRIFKDQJHVLQWKHVXUURXQGLQJHQYLURQPHQWRIWKHÀQDQFLDOLQVWLWXWLRQVWKHULVNVEDQNVIDFHDUHLQFUHDVLQJO\GLYHUVHDQGKDYHEHFRPHFRPSOH[$VÀQDQFLDOLQVWLWXWLRQVKDYHWKHUHVSRQVLELOLW\WRVDIHO\DQGHIIHFWLYHO\PDQDJH
the deposits they receive from customers, it is increasingly important to upgrade the risk control system, which is used toproperly control various risks according to their characteristics.
7KH6KLPL]X%DQNLVIXOO\DZDUHRIWKHVLJQLÀFDQFHRIULVNPDQDJHPHQWDQGHQGHDYRUVWRVWUHQJWKHQRXUULVNPDQDJHPHQWsystem.

Risk Management System
The Shimizu Bank stipulated the “Integrated risk management provisions” as basic provisions on risk management, andestablished a risk management system, in which the Board of Directors plays the central role. Based on theprovisions, the Shimizu Bank draws up “Risk Management Regulations” and “Risk Management Procedures” according to
YDULRXVULVNFDWHJRULHVZKLFKSUHVFULEHWKHVSHFLÀFPDQDJHPHQWPHWKRGVHWFDVZHOODVUHSRUWLQJWRWKH%RDUGRI
'LUHFWRUVDQGWKH0DQDJHPHQW&RPPLWWHH7KH6KLPL]X%DQNIRUPXODWHVLWVULVNPDQDJHPHQWSODQHYHU\ÀVFDO\HDUWRFRQWUROULVNVHIIHFWLYHO\DQGLGHQWLÀHVDQDO\]HVDQGDVVHVVHVULVNVEDVHGRQWKHVHSODQV■ A Chart of the IntegratedRisk Management System

Board of Directors $XGLW 6XSHUYLVRU\&RPPLWWHH
Directors not Serving as Audit &Supervisory Committee Members

Directors Serving as Audit &Supervisory Committee Members

ManagementCommittee[Integrated Risk Management Section]
Risk Management Office,Corporate Administration Division

Operational Risk
Credit Risk

Market Risk

Liquidity Risk
Adnimistrative
Risk

System Risk

Legal Risk

Reputational
Risk

Other Risk

Divisions Concerned in Risks

Audit
Division
Risk Management Office, Corporate Administration Division

CreditDivision

Risk
Risk
Management Management
Office,Office,Corporate
Corporate
Admnistration Admnistration
Division
Division

Operations
Division

Operations
Division

Risk
Legal Office, Management
Each Division
Office,Corporate
at
Corporate
Administration
Administration Headquarters
Division
Division

Branches, Headquarters, Consolidated Subsidiaries, etc.

THE SHIMIZU BANK,LTD.
11

Integrated Risk Management)URPWKHSHUVSHFWLYHRIHQKDQFLQJVRXQGQHVVLQPDQDJHPHQWWKH6KLPL]X%DQNFRPSUHKHQVLYHO\LGHQWLÀHVPDMRUULVNVWKDWthe bank faces, compares them with our corporate strength (equity capital), then establishes a self-controlling type risk
management environment, as well as addressing the tasks of enhancing risk management so as to maintain a properrisk management environment.

Credit Risk Management

The Shimizu Bank collectively administers loans and bills discounted, assets with a credit risk, and off-balance sheet assets,managing credit risk of the Bank itself and its consolidated subsidiaries.
Our screening system is composed of two sections, Sales Promotion and Screening, in order to maintain and improve
the soundness of loan assets. In addition, the Bank strictly manages credits above a certain level by screening and
SDVVLQJDUHVROXWLRQIRUÀQDQFLQJSROLF\DWWKH0DQDJHPHQW0HHWLQJZKLFKFRQVLVWVRIWKH([HFXWLYHV
0RUHRYHUWKH%DQNGHÀQHGLWVFUHGLWSROLF\ WKHEDVLFFRGHRIFRQGXFWIRUÀQDQFLQJ WRFODULI\WKHEDQN·VEDVLFDFWLRQ
guidance in the loan business, and thoroughly enforces it among our bank clerks, so as to maintain and improve the
OHYHORIRXUEDQNFOHUNV·REVHUYDWLRQRIWKHÀQDQFLQJUXOHV$FUHGLWUDWLQJV\VWHPZDVLQWURGXFHGWRPHDVXUHWKHFUHGLWULVNRIERUURZHUVZLWKDXQLÀHGVWDQGDUGDQGLWLVXWLOL]HGWR
set lending rate guidelines according to creditworthiness. Furthermore, in terms of credit management, the BankHQGHDYRUVWRPDQDJHDSSURSULDWHSRUWIROLRVWRGLVSHUVHULVNVDQGWRHQVXUHVWDEOHSURÀWVE\PHDVXULQJULVNTXDQWLWLHVZLWKWKHFUHGLWUDWLQJV\VWHPHWFDQGDFNQRZOHGJLQJWKHVWDWXVRIORDQFRQFHQWUDWLRQLQVSHFLÀFEXVLQHVVW\SHVHWF

Market Risk Management

7KH6KLPL]X%DQNPDQDJHVPDUNHWULVNWRVHFXUHO\HDUQVWDEOHSURÀWVWKURXJKPDUNHWWUDQVDFWLRQV7KH%DQNKDV
LQVWDOOHGERWKDIURQWRIÀFHDQGEDFNRIÀFHLQWKH0DUNHWVDQG,QWHUQDWLRQDO'LYLVLRQDVZHOODVDPLGGOHRIÀFHLQWKH
5LVN0DQDJHPHQW2IÀFHRIWKH&RUSRUDWH$GPLQLVWUDWLRQ'LYLVLRQZKLFKLVWKH'HSDUWPHQWFRQFHUQHGZLWKULVNWKXV
establishing a system of mutual checks and balances.
The status of measured risks is reported at the Board of Directors and Management Meeting so that the Executives canaccurately acknowledge and appropriately make decisions on the market risks.

Liquidity Risk Management

The Shimizu Bank manages funds daily, weekly, and monthly at the Markets and International Division, which is a fund raising
PDQDJHPHQWVHFWLRQZKLOHWKH5LVN0DQDJHPHQW2IÀFHRIWKH&RUSRUDWH$GPLQLVWUDWLRQ'LYLVLRQZKLFKLVWKH
department concerned with risk, manages the risks.
In addition, as a preparation for contingencies, the Bank set two phases of emergencies and prepares to secureÀQDQFLQJPHWKRGVDFFRUGLQJWRUHVSHFWLYHVLWXDWLRQVOperational Risk Management

The Shimizu Bank recognizes administrative risk, system risk, legal risk, reputational risk, and other risks as operational risk;
endeavors to prevent such risks from becoming tangible; and minimizes the impacts caused by such risks when they
become apparent.
5HJDUGLQJDGPLQLVWUDWLYHULVNIRUWKHSXUSRVHRIHVWDEOLVKLQJDURXWLQHRILPSDUWLDODQGVZLIWRIÀFHZRUNWKH%DQNKDV
EHHQLPSURYLQJWKHTXDOLW\RIRIÀFHZRUNWKURXJKWKHFUHDWLRQRIYDULRXVUXOHVRQRIÀFHZRUNLPSOHPHQWDWLRQRIWUDLQLQJSURJUDPVDQGFHQWUDOL]DWLRQDWWKHKHDGTXDUWHUVRIWKHEUDQFKRIÀFHZRUNIn relation to system risk management, the Bank uses as its core banking system “PROBANK-R2” created by Fujitsu Ltd.
We established a backup center for “PROBANK-R2”, reinforcing security against disasters (like the Tokai earthquake),
whose occurrence is a concern. Moreover, the Internal Audit Division audits the computing systems and programs
regularly, auditing system development and the administrative status of system operations, and verifying theeffectiveness of risk management.
The legal risk is the risk in which the Bank suffers losses by violating laws and regulations, etc. The Shimizu Bank places theobservance of laws and regulations, etc. as its priority issue in management to avoid the occurrence of the legal risk,
and vigorously addresses actions to strengthen our preparedness to further observe laws and regulations.
5HSXWDWLRQDOULVNLVWKHULVNVXIIHUHGIURPXQH[SHFWHGGDPDJHVE\PHGLDFRYHUDJHHWFDERXWWKHHQWLUHÀQDQFLDO
industry and our bank. The Bank takes measures, such as establishing rules and manuals which prescribe our actions, toprevent circulation of unfounded rumors and to respond to them.
The Bank has also established internal control systems to appropriately manage other operational risk, respectively.
In order to be ready for emergency events such as natural disasters, and to continue or swiftly restore our essential
EXVLQHVVLQRUGHUWRSURYLGHVWDEOHÀQDQFLDOIXQFWLRQWRRXUFXVWRPHUVWKH6KLPL]X%DQNHVWDEOLVKHGDQDFWLRQSODQWKDW
assumes the outbreak of a state of emergency, and has built a business continuity management based on this plan.

ALM System
The Shimizu Bank regularly holds Management Meetings, which mainly consist of Executives, and the ALM Earnings
Management Committee which in turn consists of General Managers, to examine proper assets and liability structures,
HWFEDVHGRQWKHÀQDQFLDODQGHFRQRPLFHQYLURQPHQWDQGIRUHFDVWVRIIXWXUHLQWHUHVWUDWHVHWFVRWKDWWKHEDQN
FDQIXOO\H[HUWWKHIXQFWLRQVRI$/0ZLWKWKHJRDOWRPD[LPL]HSURÀWVZKLOHPDQDJLQJDVVHWVDQGOLDELOLWLHVLQDQLQWHJUDO
manner balanced with adequate risks.

THE SHIMIZU BANK,LTD.
12

Corporate Data
Consolidated Balance Sheet
AssetsCash and Due from Banks
Trading Account Securities
Money Held in Trust
Securities
Loans and Bills Discounted
Foreign Exchanges
Lease Receivables and Investments in Leases
Other Assets
Property, Plant and Equipment
Buildings, Net
Land
Leased Assets, Net
Construction in Progress
Other Tangible Fixed Assets
Intangible Assets
SoftwareLeased Assets
Other Intangible Fixed Assets
Deferred Tax Assets
Customers' Liabilities for Acceptances and Guarantees
Allowance for Loan Losses
Total Assets

Liabilities
Deposits
Negotiable Certificates of Deposit
Call Money
Payables under Securities Lending Transactions
Borrowed Money
Foreign Exchanges
Other Liabilities
Provision for Bonuses
Retirement Benefit Liability
Provision for Retirement Benefits for Directors(and Other Officers)
Provision for Reimbursement of Deposits
Deferred Tax Liabilities
Acceptances and Guarantees
Total Liabilities
Net Assets
Share Capital
Capital Surplus
Retained Earnings
Treasury Shares
Total Shareholders' Equity
Valuation Difference on Available-for-Sale Securities
Deferred Gains or Losses on Hedges
Remeasurements of Defined Benefit Plans
Total Accumulated Other Comprehensive Income
Share Acquisition Rights
Non-Controlling Interests
Total Net Assets
Total Liabilities and Net Assets(Millions of Yen)

(Millions of Yen)

(Thousands of U.S.Dollars)

March 31,2019

March 31,2020

March 31,2020¥180,742¥96,769636

575

US$889,177
5,291

1,100

1,200

11,035300,142286,740

2,634,759

1,122,404

1,149,987

10,566,821

1,910

1,922

17,662

11,876

13,419123,306

19,50327,228250,188

18,372

17,817

163,718

8,001

7,524

69,139

9,113

9,113

83,744

9

6

58

31

-

-

1,215

1,172

10,775

751

682

6,273

542

527

4,845

59

39

363

149

115

1,064

1,513

2,934

26,964

3,051

4,634

42,583(5,246)(7,041)(64,705)¥1,656,759¥1,596,871

US$14,673,079(Millions of Yen)

(Millions of Yen)

(Thousands of U.S.Dollars)

March 31,2019

March 31,2020

March 31,2020¥1,386,348¥1,383,133

65,220-

US$12,709,121
-

-

2,176

20,00037,45348,473445,403

67,63067,472619,977

2

1

16

6,501

6,961

63,966

475

468

4,302

765

933

8,575

63

57

525

43

5

49

31

41

381

3,051

4,634

42,583

1,567,585

1,514,358

13,914,902

10,816

10,816

99,386

7,659

7,648

70,27967,19862,534

574,610

(284)

(257)

(2,369)85,38980,741

741,906

2,605

660

6,066

6

27

255

(177)

(320)

(2,947)

2,435

367

3,374

58

59

546

1,289

1,343

12,34989,17382,512

758,177¥1,656,759¥1,596,871

US$14,673,079

Notes
1.The Japanese yen figures are rounded down to the nearest one million yen in this financial report.
2.Figures stated in U.S.dollars are translated solely for convenience at the rate of ￥108.83per U.S.$1, the approximate rate of exchange prevailing on March 31,2020.

THE SHIMIZU BANK,LTD.
13

Consolidated Statement of Income(Millions of Yen)
Years ended
March 31,2019

Ordinary Iｎｃｏｍｅ
Interest Income
Interest on Loans and Discounts
Interest and Dividends on Securities
Interest on Call Loans
Interest on Deposits with Banks
Other Interest Income
Fees and Commissions
Other Ordinary Income
Other Income
Reversal of Allowance for Loan Losses
Other
Ordinary Expenses
Interest Expenses
Interest on Deposits
Interest on Negotiable Certificates of Deposit
Interest on Call Money
Interest on Payables Under Securities Lending Transactions
Interest on Borrowings and Rediscounts
Interest on Bonds
Other Interest Expenses
Fees and Commissions Payments
Other Operating Expenses
General and Administrative Expenses
Other Expenses
Provision of Allowance for Loan Losses
Other
Ordinary Profit (Loss)
Extraordinary Income
Gain on Disposal of Non-Current Assets
Extraordinary Losses
Loss on Disposal of Non-Current Assets
Impairment Loss
Profit(Loss) Before Income Taxes
Income Taxes - Current
Income Taxes - Deferred
Total Income Taxes
Profit(Loss)
Profit Attributable to Non-Controlling Interests
Profit(Loss) Attributable to Owners of Parent(Millions of Yen)
Years ended
March 31,2020(Thousands of U.S.Dollars)
Years ended
March 31,2020¥28,675¥28,974

US$266,234

15,477

15,359141,136

11,777

11,843

108,829

3,602
1

3,414
1

31,374
17

83

83

769

12

15

144

9,719

9,767

89,745

1,155

3,051

28,040

2,322

795

7,312

416

-

-

1,905

795

7,312

25,05433,205305,110

658

946

8,696

394
3

409
0

3,761
0

(15)

(21)

(201)

192

507

4,667

36

36

333

37

-

-

9

14

134

5,739

5,755

52,888

1,472

3,091

28,405

16,10815,673144,017

1,074

7,738

71,102‐

2,190

20,130

1,074

5,547

50,971

3,620(4,230)(38,875)

23

-

-

23

-

-

4

45

415

4

0

0

-

45

415

3,640
625

(4,276)208(39,291)
1,911

435
1,061
2,579
58
¥2,521(575)(367)(3,908)59(¥3,968)(5,284)(3,373)(35,917)547(US$36,465)

Consolidated Statement of Comprehensive Income(Millions of Yen)
Years ended
March 31,2019Profit(Loss)
Other Comprehensive Income
Valuation Difｆerence on Available-for-Sale Securities
Deferred Gains or Losses on Hedges
Remeasurements of Defined Benefit Plans, Net of Tax
Comprehensive Income
Comprehensive Income Attributable to Owners of Parent
Comprehensive Income Attributable to Non-Controlling Interests(Millions of Yen)
Years ended
March 31,2020(Thousands of U.S.Dollars)
Years ended
March 31,2020¥2,579(¥3,908)(US$35,917)(620)(2,071)(19,037)(750)(1,949)(17,910)

(12)

21

193

142

(143)

(1,320)

1,958(5,980)(54,955)¥1,904(¥6,036)(US$55,470)

54

56

514

Notes
1.The Japanese yen figures are rounded down to the nearest one million yen in this financial report.
2.Figures stated in U.S.dollars are translated solely for convenience at the rate of ￥108.83per U.S.$1, the approximate rate of exchange prevailing on March 31,2020.

THE SHIMIZU BANK,LTD.
14

Consolidated Statement of Changes in Net Assets
Years ended March 31,2019(Millions of Yen)
Shareholders' Equity
Capital Stock

Balance at Aprill 1, 2018

Retained
Earnings

Capital Surplus¥8,670¥5,514

2,145

2,145

Total
Shareholders'EquityTreasury Shares¥65,368(¥283)¥79,270

Changes During Period
Issuance of New Shares

4,291

Dividends of Surplus

(691)

(691)

Profit Attributable to Owners of Parent

2,521

2,521

Purchase of Treasury Shares

(1)

(1)

0

0

(0)

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

2,145

2,145

1,829

(1)

6,119

Balance at March 31, 2019¥10,816¥7,659¥67,198(¥284)¥85,389

Accumulated Other Comprehensive Income
Valuation
Difference on
Available-forSale Securities
Balance at Aprill 1, 2018

¥3,352

Total
Deferred Gains Remeasurements Accumulated
or Losses onof Defined
Other
Comprehensive
HedgesBenefit Plans
Income¥18(¥319)¥3,052

Subscription
Non-Controlling
Total Net Assets
Righits to SharesInterests¥42¥1,237¥83,602

Changes During Period

4,291

Issuance of New Shares
Dividends of Surplus(691)

Profit Attributable to Owners of Parent

2,521
(1)

Purchase of Treasury Shares

0

Disposaｌ of Treasury Shares

(746)

(12)

Total Changes During Period

(746)

(12)

142

(616)

15

52

5,570

Balance at March 31, 2019

¥2,605¥6(¥177)¥2,435¥58¥1,289¥89,173

Net Changes in Items Other Than Shareholders' Equity

Years ended

142

(616)

March 31,2020

15

52

(549)

(Millions of Yen)
Shareholders' Equity

Balance at Aprill 1, 2019

Capital Stock

Capital Surplus¥10,816¥7,659--Retained
Earnings

Treasury Shares¥67,198(¥284)

Total
Shareholders'Equity¥85,389

Changes During Period
Issuance of New Shares(694)

Dividends of Surplus(694)(3,968)

Profit Attributable to Owners of Parent
Purchase of Treasury Shares(11)

Disposaｌ of Treasury Shares(3,968)
(1)

(1)

27

16

Net Changes in Items Other Than Shareholders' Equity
Total Changes During Period
Balance at March 31, 2020

-

(11)

(4,663)26(4,648)¥10,816¥7,648¥62,534(¥257)¥80,741

Accumulated Other Comprehensive Income
Valuation
Difference on
Available-forSale Securities
Balance at Aprill 1, 2019

¥2,605

Total
Deferred Gains Remeasurements Accumulated
or Losses onof Defined
Other
Comprehensive
HedgesBenefit Plans
Income¥6(¥177)¥2,435

Non-Controlling
Subscription
Total Net Assets
Interests
Righits to Shares¥58¥1,289¥89,173

Changes During Period-

Issuance of New Shares(694)

Dividends of Surplus(3,968)

Profit Attributable to Owners of Parent
Purchase of Treasury Shares(1)

Disposaｌ of Treasury Shares

16(1,945)21(143)(2,068)1

54

Total Changes During Period(1,945)21(143)(2,068)1

54(6,660)

Balance at March 31, 2020

¥660

¥27

(¥320)¥367¥59¥1,343¥82,512Net Changes in Items Other Than Shareholders' Equity(2,012)

Notes
1.The Japanese yen figures are rounded down to the nearest one million yen in this financial report.
2.Figures stated in U.S.dollars are translated solely for convenience at the rate of ￥108.83per U.S.$1, the approximate rate of exchange prevailing on March 31,2020.

THE SHIMIZU BANK,LTD.
15

Consolidated Statements of Changes in Net Assets
Years ended March 31,2020(Thousands of U.S.Dollars)
Shareholders' Equity

Balance at Aprill 1, 2019

Capital Stock

Capital Surplus

US$99,386

US$70,381--

Retained
Earnings

Treasury Shares

Total
Shareholders'Equity(US$2,613)

US$784,616

US$617,461

Changes During Period
Issuance of New Shares-

Dividends of Surplus(6,385)

Profit Attributable to Owners of Parent(36,465)

Purchase of Treasury Shares(101)

Disposaｌ of Treasury Shares(6,385)(36,465)
(11)

(11)

255

153

Net Changes in Items Other Than Shareholders' Equity
Total Changes During Period

-

(101)

(42,851)

243(42,709)

Balance at March 31, 2020

US$99,386

US$70,279

US$574,610(US$2,369)

US$741,906

Accumulated Other Comprehensive Income
Valuation
Difference on
Available-forSale Securities
Balance at Aprill 1, 2019

US$23,943

Total
Subscription
Non-Controlling
Deferred Gains Remeasurements Accumulated
Righits to SharesInterests
or Losses onof Defined
Other
HedgesBenefit Plans Comprehensive
Income
US$62(US$1,626)

US$22,378

US$534

Total Net Assets

US$11,852

US$819,382

Changes During Period-

Issuance of New Shares
Dividends of Surplus(6,385)

Profit Attributable to Owners of Parent(36,465)(11)

Purchase of Treasury Shares

153

Disposaｌ of Treasury Shares
Net Changes in Items Other Than Shareholders' Equity(17,877)

193(1,320)(19,004)12

496(18,494)

Total Changes During Period(17,877)

193(1,320)(19,004)12

496(61,204)

Balance at March 31, 2020

US$6,066

US$255(US$2,947)

US$3,374

US$546

US$12,349

US$758,177

Notes
1.The Japanese yen figures are rounded down to the nearest one million yen in this financial report.
2.Figures stated in U.S.dollars are translated solely for convenience at the rate of ￥108.83per U.S.$1, the approximate rate of exchange prevailing on March 31,2020.

THE SHIMIZU BANK,LTD.
16

Consolidated Statement of Cash Flows(Millions of Yen)
Years ended
March.31,2019(Millions of Yen) (Thousands of U.S.Dollars)
Years ended
Years ended
March.31,2020
March.31,2020

Cash Flows from Operating Activities
Profit(Loss) Before Income Taxes
Depreciation
Impairment Loss
Increase (Decrease) in Allowance for Loan Losses
Increase (Decrease) in Provision for Bonuses
Increase (Decrease) in Retiremant Benefit Liability
Increase (Decrease) in Provision for Retirement Benefits for Directors(and Other Officers)
Increase(Decrease) in Provision for Reimbursement of Deposits
Interest Income
Interest Expenses
Loss(Gain) Related to Securities
Loss (Gain) on Money Held in Trust
Exchange Gain and Loss(Gain)
Loss(Gain) on Disposal of Non-Current Assets
Net Decrease (Increase) in Trading Account Securities
Net Decrease (Increase) in Loans and Bills Discounted
Net Increase (Decrease) in Deposits
Net Increase (Decrease) in Negotiable Certificates of Deposit
Net Increase (Decrease) in Borrowed Money (Excluding Subordinated Borrowings)
Net Decrease (Increase) in Due from Banks (Excluding Due from Bank of Japan)
Net Decrease (Increase) in Call Money
Net Increase (Decrease) in Payables under Securities Lending Transactions
Net Decrease (Increase) in Foreign Exchanges-Assets
Net Increase (Decrease) in Foreign Exchanges-Liabilities
Net Decrease (Increase) in Lease Receivables and Investments in Leases
Interest Received
Interest Paid
Other, Net
Subtotal
Income Taxes Paid
Net Cash Provided by (Used in) Operating Activities(1,639)
(15)
(104)
(0)
6
(15,477)658(1,594)
(11)
359
(19)
(179)
(30,357)
39,70765,2209,158(48)
37,453(1,077)(39)(1,182)
15,679(628)(2,183)
118,598(983)
117,615(¥4,276)
1,237
45
1,795
(6)
168
(5)
(37)
(15,359)
946
4,853
(13)
2,085
0
60
(27,582)(3,214)(65,220)
(158)
94
2,176
11,019(11)(1)(1,511)
15,839(876)(8,034)(85,988)(246)(86,234)(US$39,291)
11,366415
16,498
(63)
1,545
(54)
(348)
(141,136)
8,696
44,592(124)
19,1650556(253,448)(29,536)(599,283)(1,454)868
20,000101,253(104)(10)(13,884)
145,544(8,051)(73,827)(790,113)(2,263)(792,377)(171,283)
140,754
39,340
(100)
211
(353)
(108)
399
(19)
8,840

(141,632)
121,723
23,345
(100)
12
(297)
(266)
292
3,076

(1,301,411)
1,118,471
214,509(918)
114(2,732)(2,446)
2,685
28,273

4,291
(26)
(1)
0
(687)
(1)
(10,000)(6,426)
1
120,03158,725¥178,756

(25)
(1)
0
(692)
(1)
(721)
(0)
(83,878)
178,756¥94,878

(233)
(11)
0
(6,364)(18)(6,627)(1)(770,733)
1,642,533
US$871,800¥3,6401,272Cash Flows from Investing Activities
Purchase of Securities
Proceeds from Sales of Securities
Proceeds from Redemption of Securities
Increase in Money Held in Trust
Decrease in Money Held in Trust
Purchase of Property, Plant and Equipment
Purchase of Intangible Assets
Proceeds from Sales of Property, Plant and Equipment
Payment for Asset Retirement Obligations
Net Cash Provided by (Used in) Investing Activities
Cash Flows from Financing Activities
Proceeds from Issuance of Shares
Repayments of Lease Obligations
Purchase of Treasury Shares
Proceeds from Sales of Tresury Shares
Dividends Paid
Dividends Paid to Non-Controlling Interests
Redemption of Subordinated Bonds
Net Cash Provided by (Used in) Financing Activities
Effect of Exchange Rate Changes on Cash and Cash Equivalents
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Period
Cash and Cash Equivalents at End of Period

Notes
1.The Japanese yen figures are rounded down to the nearest one million yen in this financial report.
2.Figures stated in U.S.dollars are translated solely for convenience at the rate of ￥108.83per U.S.$1, the approximate rate of exchange prevailing on March 31,2020.

THE SHIMIZU BANK,LTD.
17

%RDUGRI'LUHFWRUV and Executive Officers● &KDiUPDn(Representative Director)
Katsuichiro Toyoshima● Directors
Keiko Higashi
Takashi Aizawa<RVXNH:DNDED\DVKL
Naoyuki Tamura
1DRNL7RED\DPD
0DVDVKL+LUDLZD
Akihiro Mochizuki*
Youichiro Ito*
Kazuaki Isobe*
Makoto Kono*● 3UHVLGHQW(Representative Director)
Yasuhiro Iwayama● Senior Managing Director
Ayato Mochizuki● Managing Director)XPLWRVKL<DEX]DNLAs of June 30,20

● Managing Executive Officer
6DWRVKL.RED\DVKL● Executive Officers
Tetsuya Sugiyama
Masahiro Koyanagi<DVXQREX6XJLPRWR+LURVKL1RQRPXUD<DVX\RVKL2KDWD
1REXKLGH)XND]DZD

0DVDNL6X]XNL*Audit & Supervisory Committee Members

Organization Chart

As of -XQH 3,20

General Meeting of Shareholders

Board of Directors

Chairman

Directors$XGLW 6XSHUYLVRU\&RPPLWWHH

Corporate Administration
Division

Legal Office

President

Risk Management Office

Deputy &KDLUPDQ'HSXW\3UHVLGHQW

Finance Office

Management Planning
Division

Secretariat OfficeSenior Managing Director
Managing Director

Business Information Office Tokyo

Counselor

Business Information Office Nagoya
Bangkok Representative OfficeDirectors in Charge
Executive Officers

%XVLQHVV'HYHORSPHQWDivision

Head Office
Customers
Branch Advisory Division

Customer Services Office

Branches

Loan Center
Markets and InternationalDivision

Securities Office

Credit Division&RRSHUDWH SXSSRUW Office

Operations Division

Operations Center Office

General Affairs and Human
Resources Division

Personnel Rating OfficeInternal Audit Division

Mt. Fuji
FUJI

MARKETS AND INTERNATIONAL DIVISIONHEAD OFFICENUMAZUSHIZUOKAYAIZU
HAMAMATSU

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

TOKYO
NAGOYATHE SHIMIZU BANK,LTD.
18