THE SHIMIZU BANK,LTD.
Annual Report 2018

ProfileThe Shimizu Bank, Ltd. was established in 1928 with themerger of six banks and has always been a valuable
partner of the local community.
The Bank has its headquarters in Shizuoka City, which
has the Shimizu Port, the largest in the prefecture.
Shimizu Port, located halfway between Tokyo andOsaka, plays a significant role in international tradeand economic development.
We will provide customers with a wide range offinancial services, seek further business expansion
as a customer-friendly bank and contribute to thedevelopment of the local community.

Bank Data

As of March 31, 2018

2-1 Fujimicho, Shimizu-ku, Shizuoka-shi,
Head Office					Shizuoka 424-0941 Japan
Date of Incorporation:
July 1, 1928
Paid-up Capital:			¥8,670,500,000
Number of Branches:			
78
Number of Sub-branches:		
1
Number of Employees:			942
Consolidated Capital Adequacy Ratio(based on domestic standards): 10.30%
Non-Consolidated Capital Adequacy Ratio(based on domestic standards): 10.06%

Consolidated Subsidiaries

As of June 30, 2018

(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

Message
We want to thank all of our customers for your continued
patronage at the Shimizu Bank and our group partners. We
have put together a packet of Disclosure Materials the 2018
fiscal year to share the financial highlights and our efforts ofthe 2017 fiscal year. We invite you to read these materials
to further your understanding of the Shimizu Bank and ourgroup partners.
During the fiscal year under review, the Japanese economy
maintained its recovery trend. This was driven by suchfactors as rising capital investment, against a backdropof strong corporate earnings, and conducted primarily inthe areas of rationalization and labor-saving, as well as byimproved exports resulting from the moderate recovery
in overseas economies. Consumer spending also showedsigns of recovery, in the context of further improvements in
employment and income conditions. On the other hand,
the impact of labor shortages on employment has become
clear, and retention of has become an issue. However, due
to the conduct of policy in the U.S., the political situationin Europe and geopolitical risks in Asia, the outlook foroverseas economies remains uncertain.
The economy of Shizuoka Prefecture, which is theprimary business base of the Bank, grew steadily, driven
by improvements in productivity, primarily at large andmedium-sized manufacturers, and by further increases incapital expenditures related to research and development.
In addition, exports were on a rising trend, mainly as aresult of increases in shipments of vehicles and motorcycles
bound for Europe. With employment and income
conditions improving, consumer spending also continued torecover gently, leading to resilient sales of food, household
electricals and so on.
It was in this context that the Bank worked on a variety ofmeasures to demonstrate the significance of our existence,
one of the goals expressed in the “Advance As One –Toward the realization of sustainable growth together withour community and customers” The 26th medium-termManagement plan.

with housing loans, and with extensive coverage of 11
different illnesses.
From October 2017, as part of the measures being taken toincrease productivity, we began a new marketing systemwith the goal of expanding revenue opportunities by
increasing contact with customers. Also, we introduced RPA
in July 2017, and in March 2018 we began implementing thisin the area of loan administration. Furthermore, in March2018 we began work with Shizuoka Prefectural Credit
Federation of Agricultural Cooperatives to commonalize
the administration of operations for exchanging bills andchecks, an initiative that began full-scale operation in April
2018.
In March 2018 we transitioned the Sodeshi branch to a
newly built office, and moved the Ihara and Tsuji branches
inside the new Sodeshi branch. At new branches, in order
to meet the diversifying needs of customers we havestrengthened the consulting functions, such as by increasing
the number of advice booths and meeting rooms, andassigning staff to guide customers through the branch.
This year, the Shimizu Bank celebrates the 90th anniversaryof its founding. I would like to take this opportunity to express
our heartfelt thanks for the support you have shown us over
the years. As we face a new future, we will strive to realize
our goal of demonstrating the significance of our existence.
Going forward, we will continue to maintain a keenawareness of our social responsibility as a financeinstitution, and in addition to building a robust structure forcompliance, we will work to further strengthen governancein order to increase corporate value. We humbly andsincerely request your continued support and war mpatronage..
July 2018

In terms of initiatives aimed at corporate customers, theBank opened its first-ever overseas branch in Thailand in July
2017, the Bangkok Representative Office. In February 2018,
the Bank concluded a business cooperation agreementwith the Bangkok Bank, strengthening its structure forsupporting customers in their expansion overseas. The
Bank also offered Shimizu Regional Revitalization Private
Placement Bond and Shimizu Regional Revitalization Loan,
with the aim of diversifying financing options.
With regard to initiatives for individual customers, we
added 12 new investment trust products and seven newlife insurance products to support stable asset formation bycustomers, as well as launching the Shimizu iDeCo personal
defined contribution pension plan. In addition, we opened
Japan's first-ever joint branch, in association with SBI
Money Plaza Co., Ltd., in Hamamatsu City, enabling us tostrengthen our consulting functions as well as provide highvalue-added financial services.
In loan-related products, we strove to further expand ourrange of goods and services for customers. In addition tolaunching the Shimizu Free Loan, we began offering newgroup credit life insurance products, aimed at customers

Katsuichiro Toyoshima
President

THE SHIMIZU BANK,LTD.
2

The 26th Medium-term Management Plan

From April 1,2016
to March 31,2020 (Four years)

Toward the realization of sustainable growth together
with our community and customers■ Amid the many changes taking place around us, we will achieve our vision of demonstrate thesignificance of our existence and remain a bank that is needed by the community, by honing ourclose relationships with the community and our customers and bringing all members of the Shimizu
Bank Group together to Advance As One.
■ This 26th medium-term business plan covers an important four-year period ahead of the 90th and100th anniversaries of our foundation, during which time we will implement priority measures based on
our basic policies of “improving financial intermediary functionality,” “increasing productivity,”“securing our business base,” and “creating more dynamic human resources” in order to realize abenevolent cycle toward a future that gives each and every employee a sense of satisfaction.

VisionDemonstrate the significance of our existence

Period of plan

April 1, 2016 to March 31, 2020 (4 years)

Basic policies

Improving ﬁnancial
intermediaryfunctionality

Target ﬁgures① Core operational net proﬁt¥ 4 billion or more
② Core OHR
70% level

Increasing
productivity

Securing ourbusiness baseCreating more
dynamic humanresources③ Total loans to small to medium-sized companies¥ 880 billion or more
④ Total personal deposits¥1 trillion or more

Cost as a proportion of core operational gross proﬁt

Improvingﬁnancial
intermediaryfunctionality

Enhancement of personal sales
by market-oriented strategy

Realization of operational reformin pursuit of efficiency

Sophistication of investment
in financial market

Raising awareness of time cost

Proactive participationin community formation

Community
Customers

Strengthening of cooperation andearning power of group companies
Optimum store location and reformof head office structure

Thorough implementation of
low cost management
Career paths to bring out
maximum ability

Work-life balance reform

Increased corporate value
through branding

Promotion of diversity

Strengthening of governanceand risk management system

Securing ourbusiness base

Increasing
productivity

Enhancement of corporate sales bycustomer-oriented strategy

Thorough implementationof compliance

Enhancement of practical training

Creating more
dynamic humanresources

CSR activities that respect links
with community

THE SHIMIZU BANK,LTD.
3

Support for Overseas Business Development
Strengthening support for overseas expansion
On July 3, 2017, the Bank opened its first-ever overseas branch, the Bangkok Representative Office, inThailand. On September 7, 2017, we signed an agreement related to an overseas operations alliance with
Hokuto Bank, Ltd. of Akita Prefecture. Our twin aims are to increase business opportunities with companies
expanding overseas beyond their regional origins, and to broadcast to the world something of the culture ofboth our prefectures.
In addition, on February 15, 2018, we concluded a business cooperation agreement with the Bangkok Bank,
one of Thailand's major commercial private-sector banks, in anticipation of the expansion of our customers'
overseas networks, and with the aim of diversifying financing options. Through this agreement with the
Bangkok Bank, we plan to further enhance our support for overseas expansion, such as by providing financial
assistance in the form of standby L/Cs and so on for companies entering Thailand.

Profile of the Bangkok Representative OfficeName

The Shimizu Bank, Ltd. Bangkok Representative Office

Date of opening

July 3, 2017Staff

2 persons (comprising 1 banker posted from Japan and 1 local staff member)

Principal businessactivities(1) Support service for overseas expansion and trading transactions by
Japan-based customers(2) Gathering and dissemination of information on economic developments,
market trends and investment climate(3) Bolstering of relations with partners such as local financial institutions

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
strengthen "demonstrate the significance of our existence" for individual customers.

All Photos of Mt. Fuji by Shizuoka Prefecture Tourism Association

THE SHIMIZU BANK,LTD.
5

Summary of Business
Consolidated Results
Ordinary revenue fell by ¥1,123 million year on year to ¥27.637 billion, due to declines in trading income.
Operating expenses fell by ¥519 million year on year as a result of reductions in expenses etc., to ¥24.291 billion. As a result,ordinary profit declined by ¥603 million year on year to ¥3.345 billion. In terms of deposits, we worked to expand our businessbase, which has close ties to the region, and as a result of prioritizing the profitability of funding we were able to growdeposits for both corporate and individual customers. However, public deposits declined, leading to total deposits falling by¥22.5 billion from the end of the previous fiscal year, to ¥1,346.6 billion.
In personal deposit assets, we strove to meet diversifying customer needs, as a result of which personal deposits andpersonal pension insurance rose by ¥16.4 billion over the end of the previous fiscal year, to ¥1,115.7 billion.
Loans rose by ¥24.3 billion from the end of the previous fiscal year to ¥1,092.0 billion, as a result of responding proactively, asa regional financial institution, to demand from customers for funding.
Securities increased by ¥54.0 billion over the end of the previous fiscal year, to ¥307.7 billion, the result of focusing on market
fluctuations while taking a flexible approach to management.
(Millions of Yen)

Consolidated Five-years Summary
Ordinary Income
Ordinary Profit
Profit Attributable to Owners of The Parent
Comprehensive Income
Total Net Assets
Total Assets

2014¥30,265
3,660
2,077
668
74,2501,494,830

2015¥29,070
4,615
3,400
7,463
80,717
1,591,910

2016¥29,539
4,989
3,299
372
80,5281,483,918

2017¥28,760
3,948
2,978
1,684
81,6591,590,062

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

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

7,552.19
217.7811.93%
1,109

8,329.77
356.4510.82%
1,103

8,302.98
345.9210.75%
1,071

8,408.00
312.2910.60%
1,044

8,629.71
244.5210.30%
1,027

Non-Consolidated Results
Ordinary revenue fell by ¥1,159 million year on year to ¥22.473 billion, due to declines in trading income.
Operating expenses fell by ¥1,081 million year on year as a result of reductions in expenses, etc., to ¥19.079 billion.
As a result, ordinary profit declined by ¥78 million year on year to ¥3.394 billion.

(Millions of Yen)

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

2014¥25,520
3,505
1,999
8,670
9,600
70,974
1,487,974
1,382,325
1,036,413
301,5012015¥24,459
4,464
2,527
8,670
9,600
77,161
1,584,920
1,404,405
1,050,470
318,4422016¥24,650
4,662
3,210
8,670
9,600
77,857
1,477,336
1,353,887
1,070,463
254,2962017¥23,632
3,472
2,697
8,670
9,600
78,2891,581,427
1,373,814
1,073,777
253,9732018¥22,473
3,394
2,573
8,670
9,600
80,1591,499,276
1,350,623
1,097,004
308,102

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

7,440.33
60
30
209.5528.63%
11.57%
1,002

8,089.85
60
30
264.9922.64%
10.49%
999

8,161.97
60
30
336.6517.82%
10.43%
974

8,205.68
60
30
282.8721.21%
10.30%
951

8,398.51
60
30
269.7922.23%
10.06%
942

Ordinary Income(Millionsof Yen)

5,000

30,00024,65023,632

22,47320,000Ordinary Profit(Millionsof Yen)

4,662

4,000

Profit(Millionsof Yen)
4,000

3,210
3,472

3,000

3,394

2,697

2,573

3,000
2,000
2,000

10,000

1,000

1,000
0

2016

2017

2018

0

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.

2016

2017

0

2018

AAA

Our Bank

AA

A

A
BBB

2016

2017

2018

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, 2018)

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 isto perform 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 anddevelop a framework to strictly monitor the business management execution.

1) Outline of our corporate governance system
The Shimizu Bank, using the corporate auditor system, has in place the Board of Auditors comprising four Corporate
Auditors (including two Outside Corporate Auditors). The Board of Auditors appropriately audits the businessexecution by Directors and provides an enhanced function to check our business administration.
The Board of Directors, being composed of 11 Directors including three Outside Directors (part-time), determinessignificant operational strategies in light of our business philosophy. We elected Outside Directors in order to fully
utilize the function for external professionals to supervise business execution by Directors.
The Board of Auditors consists of four Corporate Auditors, including two Outside Corporate Auditors (part-time). To
enhance the functions of Corporate Auditors, we elected fair and highly specialized Outside Corporate Auditors.
We designated three Outside Directors (part-time) and two Outside Corporate Auditors (part-time) as “Independent
Directors” under the Securities Listing Regulations of the Tokyo Stock Exchange (Outside Directors and Outside
Corporate Auditors who are unlikely to experience any conflict of interest with ordinary shareholders).
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,
in principle, 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 guidanceon such compliance; 5) system strategies to deliberate on system strategies for operations; 6) financial reporting todetermine a financial closing policy; and 7) financial facilitation in which to identify, analyze, assess and verify thestatus of financial facilitation control targeting small- to medium-sized enterprises. A Project Meeting is allowed tobe held any time as a meeting to resolve (deliberate) on a specific subject continuously for a limited period of time,and an Ordinary Management Meeting is supposed to resolve on the subjects and operation for such meeting eachtime. 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
to the agenda. An Expanded Management Meeting is attended by officers comprising members of an Ordinary
Management Meeting as well as employees who are designated separately in subsidiary rules on a subject-bysubject basis. Such meeting is attended by full-time Corporate Auditors as observers. A Project Meeting is attended
by officers more or less identical to attendees of an Ordinary Management Meeting. Each Management Meeting isregarded 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 andasset liability management (ALM).

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

Election and dismissal

Board of Auditors

Board of Directors
Directors (11)

Auditors (4)Outside Directors (3)Outside Auditors (2）Collaborate

Management
Committee

Internal
Audit DivisionInternal audit

Directors in charge
Division management
Executive Officers
Executionof division operations

reportElectionanddismissal

Collaborate

Accounting auditors
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 of Incorporation• 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 the Shimizu Bank Group as a whole and ascertain compliance issues. Hold an Expanded Management
Meeting monthly on the theme of 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 conformityof routine operations to laws. Establish the Compliance Reporting Scheme to prevent any violation from occurringwith respect to the user of this reporting scheme, management will not take any action detrimental to the reporting
officer such as a disciplinary action and employee evaluation downgrade on account of the reporting.
• The Awards and Discipline Committee takes a penalty action against an employee for a violation of laws, regulationsor the Articles of Incorporation. As for a violation by a Director of laws, regulations or the Articles of Incorporation, theManagement Committee investigates the violation pursuant to the Director Compliance Rules, following which a
Board of Directors meeting resolves to take specific action.
• The Bank will battle determinedly against what are generally referred to in Japan as “anti-social forces” and anticommunity groups that threaten order and security in local communities, and will not provide any benefit to such
entities.
b. System for the storage and management of information on duty execution by Directors• We store and manage information on duty execution by Directors such as minutes of Board of Directors meetings andringi 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
departments in 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 reporton the state of 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 ourbusiness activities.
d. System to ensure that Directors execute their duties efficiently• Directors are to execute their duties according to the Organization Regulations and the Job Authority Regulations.
The Bank has the Management Committee in place as a body to deliberate and resolve within the scope assigned to
it by the Board of Directors, and this committee is to expedite decision-making for business execution.
• The personnel are to report to the Board of Directors on the state of progress for any matter resolved by the Board of
Directors every three months, thereby managing and ascertaining the progress until completion.
e. System to secure the appropriateness of operations at the corporate group comprising the Bank and its subsidiaries• We strive to secure the appropriateness of our operations with respect to compliance at the Shimizu Bank Group
companies and adequate reporting to the Bank, as well as the efficiency of our risk management and duty execution.
To this end, we install a supervision department to be charged with operating and managing the Shimizu Bank Group
companies. Moreover, we establish the Shimizu Bank Group Operation and Management Regulations. Our groupcompanies are to submit reports to the Bank and consult with it according to the List of Matters for Consultation andReporting by Group Companies.
• The Bank’s personnel are to visit our group companies and audit them, as required.
• The Bank and its group companies are to comply with accounting standards and other relevant laws and regulations,and develop a system to secure the trustworthiness of their financial reporting.
f. Matters on the employees required by Corporate Auditors to be installed as assistant for the Corporate Auditors’ duties• The Bank installs at least one employee in the charge of the Board of Auditors as an assistant for their duties.
g. Matters on the independence of the employees set forth in the preceding item from Directors and on the securementof effectiveness of Corporate Auditor’s instructions to the employees• The opinion of the Board of Auditors is to be respected for a personnel change and evaluation involving an employee
in the charge of the Board of Auditors.
h. System for Directors and employees to report to Corporate Auditors and other system for reporting to Corporate
Auditors• The Directors of the Bank and its group companies are to report without delay to Corporate Auditors on any
significant matter that affects, or may affect, the Bank’s operations or financial results. The employees of the Bank andits group companies are to report on such matter through a control department and by way of a Director in charge
and a group company Director. The Directors and employees of the Bank and its group companies must provide
cooperation if asked by a Corporate Auditor to report on operations.
• Management must not take any action detrimental to the reporting officer such as a disciplinary action andemployee evaluation downgrade on account of the above-mentioned reporting.
i. Other system to ensure that Corporate Auditors’ audit is conducted effectively• The President strives to foster mutual awareness by exchanging opinions regularly on challenges the Bank must
address and the state of environmental development for audits by Corporate Auditors as well as significant auditrelated issues.
j. Matters on the policy to process expenses or liabilities to be incurred due to the execution of Corporate Auditor
duties such as the procedure to make an advance payment for, or refund of, expenses to be incurred due to theperformance of Corporate Auditor duties, among others• If requested by a Corporate Auditor for an advance payment or a refund of expenses required due to the executionof his/her duties, the Bank will promptly process such expenses or liability.

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.
In addition, we have established the Legal Office within the Corporate Administration Division to supervise complianceand entrusted that office with centralized control of information pertaining to compliance issues and providing
guidance on the laws and regulations officers and employees must observe.
Furthermore, we have assigned individuals to be in charge of compliance at each division and branch to facilitate
coordination with the office that overseas compliance (the Legal Office) and exhaustively enforce observance of laws
and regulations. The Shimizu Bank also assigns regional compliance supervisor and the like in order to properly addresscompliance issues in relevant divisions.

Corporate culture attaching importance to compliance

The Bank formulated the Compliance Manual which illustrates the Ethics Charter and laws and regulations required to beobserved and which specifically outlines how to deal with any illegal act discovered. Each time laws or regulations areamended, the provisions of the Compliance Manual are revised with the approval of the Board of Directors. We ensurethat the Compliance Manual is adhered to in the Bank by organizing training and in-branch learning programs.
This manual, in electronic format, is allowed to be viewed by any employee via a PC at all times. Thus, we seek to foster
compliance awareness in the organization while striving to cause specific actions to be taken.
Each fiscal year, we formulate the Compliance Program, a specific action plan aimed at securing the state ofcompliance in the Bank. Thus, we engage in effective monitoring activities while developing a compliance framework.
Specifically, based on our training programs, all Shimizu Bank employees take e-learning-based compliance study andtesting courses, among other efforts to grasp rules including various laws and regulations.
The results of such courses are analyzed by the Compliance Supervisory Department before being reported to the
Expanded Management Meeting. Then, the personnel discuss measures such as those for preventing any violation of laws
and regulations and stopping their recurrence before reflecting such measures in our business execution, in a move tofurther bolster our compliance system.
The Shimizu Bank Group has in place the Compliance Reporting Scheme, a system in which to report any issue or
problem detected. We secured neutrality for the system by arranging for the General Manager of the Legal Office at the
Corporate Administration Division and our corporate lawyers to serve as reporting desks. Moreover, we built a platformto prevent any user of this reporting scheme from being subjected to detrimental treatment on account of the reporting,thereby striving to avert misconduct and fraud.

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

2. Contributing to the economy and to society by providing high-quality services
In addition to the function of providing infrastructure to support economic activity that we have fulfilled from the
beginning, we contribute to the economy and to society, both in Japan and overseas, by providing high-quality
financial services that respond to the needs of users.

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

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

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

THE SHIMIZU BANK,LTD.
9

■Compliance System

Board of Directors
ReportAudit & Supervisory Board
Instruction

Management 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

Inspection Result
ReportDiscuss

Consult and Compliants treatment
Financial ADR Treatment
Disclose personal Information

Branch Advisory Division

Discuss

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

Discuss

Inspection

Markets andInternational Division
Report, Contact, Consult

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

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

Branches, Divisions, andGroup Companies, etc

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

THE SHIMIZU BANK,LTD.
10

Risk Management System
Because of changes in the surrounding environment of the financial institutions, the risks banks face are increasingly
diverse and have become complex. As financial institutions have the responsibility to safely and effectively manage
the deposits they receive from customers, it is increasingly important to upgrade the risk control system, which is used toproperly control various risks according to their characteristics.
The Shimizu Bank is fully aware of the significance of risk management and endeavors to strengthen our risk management
system.

Risk Management System
The Shimizu Bank stipulated the “Integrated risk management provisions” as basic provisions on risk management, andestablished a risk management system, in which the Board of Directors plays the central role. Based on theprovisions, the Shimizu Bank draws up “Risk Management Regulations” and “Risk Management Procedures” according tovarious risk categories which prescribe the specific management methods, etc., as well as reporting to the Board of
Directors and the Management Committee. The Shimizu Bank formulates its risk management plan every fiscal year tocontrol risks effectively, and identifies, analyzes and assesses risks based on these plans.

■ A Chart of the integrated

risk management system

Auditors/
Board of Auditors

Board of Directors
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

Reputationalrisk

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
From the perspective of enhancing soundness in management, the Shimizu Bank comprehensively identifies major risks thatthe bank faces, compares them with our corporate strength (equity capital), then establishes a self-controlling type risk
management environment, as well as addressing the tasks of enhancing risk management so as to maintain a properrisk management environment.

Credit risk management
The Shimizu Bank collectively administers loans and bills discounted, assets with a credit risk, and off-balance sheet assets,managing credit risk of the Bank itself and its consolidated subsidiaries.
Our screening system is composed of two sections, Sales Promotion and Screening, in order to maintain and improve
the soundness of loan assets. In addition, the Bank strictly manages credits above a certain level by screening andpassing a resolution for financing policy at the Management Meeting, which consists of the Executives.
Moreover, the Bank defined its credit policy (the basic code of conduct for financing) to clarify the bank’s basic action
guidance in the loan business, and thoroughly enforces it among our bank clerks, so as to maintain and improve thelevel of our bank clerks’ observation of the financing rules.
A credit rating system was introduced to measure the credit risk of borrowers with a unified standard, and it is utilized to
set lending rate guidelines according to creditworthiness. Furthermore, in terms of credit management, the Bank
endeavors to manage appropriate portfolios, to disperse risks, and to ensure stable profits by measuring risk quantities
with the credit rating system, etc. and acknowledging the status of loan concentration in specific business types, etc.

Market risk management
The Shimizu Bank manages market risk to securely earn stable profits through market transactions. The Bank has
installed both a front office and back office in the Markets and International Division, as well as a middle office in the
Risk Management Office of the Corporate Administration Division, which is the Department concerned with risk, thus
establishing a system of mutual checks and balances.
The status of measured risks is reported at the Board of Directors and Management Meeting so that the Executives canaccurately acknowledge and appropriately make decisions on the market risks.

Liquidity risk management
The Shimizu Bank manages funds daily, weekly, and monthly at the Markets and International Division, which is a fund raising
management section, while the Risk Management Office of the Corporate Administration Division, which is thedepartment concerned with risk, manages the risks.
In addition, as a preparation for contingencies, the Bank set two phases of emergencies and prepares to secure
financing methods according to respective situations.

Operational risk management
The Shimizu Bank recognizes administrative risk, system risk, legal risk, reputational risk, and other risks as operational risk;
endeavors to prevent such risks from becoming tangible; and minimizes the impacts caused by such risks when they
become apparent.
Regarding administrative risk, for the purpose of establishing a routine of impartial and swift office work, the Bank has
been improving the quality of office work through the creation of various rules on office work, implementation oftraining programs, and centralization at the headquarters of the branch office work.
In relation to system risk management, the Bank uses as its core banking system “PROBANK-R2” created by Fujitsu Ltd.
We established a backup center for “PROBANK-R2”, reinforcing security against disasters (like the Tokai earthquake),
whose occurrence is a concern. Moreover, the Internal Audit Division audits the computing systems and programs
regularly, auditing system development and the administrative status of system operations, and verifying theeffectiveness of risk management.
The legal risk is the risk in which the Bank suffers losses by violating laws and regulations, etc. The Shimizu Bank places theobservance of laws and regulations, etc. as its priority issue in management to avoid the occurrence of the legal risk,
and vigorously addresses actions to strengthen our preparedness to further observe laws and regulations.
Reputational risk is the risk suffered from unexpected damages by media coverage, etc. about the entire financial
industry and our bank. The Bank takes measures, such as establishing rules and manuals which prescribe our actions, toprevent circulation of unfounded rumors and to respond to them.
The Bank has also established internal control systems to appropriately manage other operational risk, respectively.
In order to be ready for emergency events such as natural disasters, and to continue or swiftly restore our essential
business in order to provide stable financial function to our customers, the Shimizu Bank established an action plan thatassumes the outbreak of a state of emergency, and has built a business continuity management based on this plan.

ALM System
The Shimizu Bank regularly holds Management Meetings, which mainly consist of Executives, and the ALM Earnings
Management Committee which in turn consists of General Managers, to examine proper assets and liability structures,etc. based on the financial and economic environment and forecasts of future interest rates, etc., so that the bankcan fully exert the functions of ALM, with the goal to maximize profits while managing assets and liabilities in an integral
manner balanced with adequate risks.

THE SHIMIZU BANK,LTD.
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 Investment Assets
Other Assets
Tangible Fixed Assets
Buildings, Net
Land
Leased Assets, Net
Construction in Progress
Other Tangible Fixed Assets
Intangible Fixed Assets
SoftwareLease 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 and Bills Sold
Borrowed Money
Foreign Exchanges
Bonds Payable
Other Liabilities
Provision for Bonuses
Net Defined Benefit Liability
Provision for Directors' Retirement Benefits
Provision for Reimbursement of Deposits
Deferred Tax Liabilities
Acceptances and Guarantees
Total Liabilities
Net Assets
Capital Stock
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
Subscription Rights to Shares
Non-Controlling Interests
Total Net Assets
Total Liabilities and Net Assets(Millions of Yen)

(Millions of Yen)

(Thousands of U.S.Dollars)

March 31,2017

March 31,2018

March 31,2018¥216,802
449
1,201
253,703
1,067,716
619
9,989
22,164
19,571
8,737
9,393
19
1,420
1,112
786
92
233
1,797
2,693
(7,758)¥1,590,062¥60,662457
1,200
307,776
1,092,046
833
11,074
18,34819,061
8,344
9,267
165
67
1,216
960
688
80
191
1,803
2,671
(6,885)¥1,510,013$570,998
4,305
11,2952,896,993
10,279,055
7,846
104,243
172,709
179,41978,54487,233
1,554
639
11,448
9,045
6,481
757
1,805
16,97725,148(64,811)$14,213,228(Millions of Yen)

(Millions of Yen)

(Thousands of U.S.Dollars)

March 31,2017

March 31,2018

March 31,2018¥1,369,182
59,71011,21947,5291
10,000
6,347
496
1,071
85
40
24
2,693
1,508,403¥1,346,641
58,47142
10,000
7,088
490
869
63
36
35
2,671
1,426,410$12,675,462
550,371401
94,126
66,720
4,616
8,180
595
341
338
25,14813,426,303

8,670
5,272
63,608(300)
77,250
3,496
28
(598)
2,926
41
1,440
81,659¥1,590,062

8,670
5,514
65,368(283)
79,270
3,352
18
(319)
3,052
42
1,237
83,602¥1,510,013

81,612
51,901
615,294(2,666)746,141
31,557178(3,007)28,728403
11,651
786,924$14,213,228

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 ¥106.24 per U.S.$1, the approximate rate of exchange prevailing on March 30,2018.

THE SHIMIZU BANK,LTD.
13

Consolidated Statement of Income
Ordinary Income
Interest Income
Interest on Loans and Discounts
Interest and Dividends on Securities
Interest on Call Loans
Interest on Deposits with Banks
Other Interest Income
Fees and Commissions
Other Ordinary Income
Other Income
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
OthersOrdinary Profit
Extraordinary Income
Gain on Disposal of Non-Current Assets
Extraordinary Losses
Loss on Disposal of Non-Current Assets
Loss on Disposal of Fixed Assets
Impairment Loss
Income Before Income Taxes
Income Taxes - Current
Income Taxes - Deferred
Total Income Taxes
ProfitProfit Attributable to Non-Controlling Interests
Profit Attributable to Owners of The Parent(Millions of Yen)

(Millions of Yen)

Years ended
March 31,2017¥28,760
16,444
12,445
3,905
2
84
7
8,655
1,822
1,837
24,811
824
494
4
162

52
88
23
5,031
2,032
16,409
513
147
365
3,948
141
141
46
31

14
4,043
752
206
958
3,085
106
¥2,978(Thousands of U.S.Dollars)

Years ended
March 31,2018¥27,637
15,95911,843
4,018
1
83
11
9,233
1,093
1,350
24,291
612
388
0
37
49
38
88
10
5,365
1,465
16,194
654
406
247
3,345
5
5
55
1
0
54
3,294
973
(65)
908
2,386
54
¥2,332Years ended
March 31,2018$260,137
150,221
111,476
37,82817790
109
86,91010,28912,715
228,650
5,764
3,659
0
352
462
363
828
97
50,501
13,795
152,431
6,158
3,829
2,328
31,487
49
49
523
10
0
512
31,012
9,163
(616)
8,547
22,465511$21,954

Consolidated Statement of Comprehensive Income(Millions of Yen)

ProfitOther Comprehensive Income
Valuation Difference on Available-for-Sale Securities
Deferred Gains or Losses on Hedges
Remeasurements of Defined Benefit Plans
Comprehensive Income
Comprehensive Income Attributable to Owners of The
ParentComprehensive Income Attributable to Non-Controlling
Interests(Millions of Yen)

(Thousands of U.S.Dollars)

Years ended
March 31,2017¥3,085(1,400)(1,713)
28
283
1,684

Years ended
March 31,2018¥2,386
123
(146)
(9)
279
2,509

Years ended
March 31,2018$22,465
1,158(1,375)(93)
2,627
23,624¥1,568¥2,458$23,136

115

51

487

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 ¥106.24 per U.S.$1, the approximate rate of exchange prevailing on March 30,2018.

THE SHIMIZU BANK,LTD.
14

Consolidated Statement of Changes in Net Assets
Years ended

March 31,2017(Millions of Yen)

Shareholders' Equity

Balance at Aprill 1, 2016

Capital Stock

Capital Surplus

Retained Earnings

Treasury Shares

Total Shareholders'Equity¥8,670¥5,272¥61,202(¥298)¥74,847

Changes of Items During The Period
Dividends of Surplus

(572)

(572)

Profit Attributable to Owners of The Parent

2,978

2,978

Purchase of Treasury Shares(0)

Disposal of Treasury Shares

(2)

(2)

0

0

Purchase of Shares of Consolidated Subsidiaries
Net Changes of Items Other Than Shareholders' Equity

-

(0)

2,405

(2)

2,403

¥8,670¥5,272¥63,608(¥300)¥77,250

Total Changes of Items During The Period
Balance at March 31, 2017

Accumulated Other Comprehensive Income
Total
Valuation
Deferred Gains Remeasurements Accumulated
Difference on
Or Losses on of Defined Benefit
Other
Available-forComprehensive
Hedges
Plans
Sale Securities
IncomeBalance at Aprill 1, 2016

¥5,218¥0(¥882)

Subscription
Righits toShares

NonControlling
Interests¥18¥1,327¥4,335

Total Net
Assets¥80528Changes of Items During The Period
Dividends of Surplus(572)

Profit Attributable to Owners of The Parent

2,978

Purchase of Treasury Shares(2)

Disposal of Treasury Shares

0

Purchase of Shares of Consolidated Subsidiaries(1,721)28

283(1,409)22

133

Total Changes of Items During The Period(1,721)28

283(1,409)

22

133

1,130

Balance at March 31, 2017

¥3,496¥28(¥598)¥2,926¥41¥1,440¥81,659

Net Changes of Items Other Than Shareholders' Equity

Years ended

March 31,2018(1,273)(Millions of Yen)

Shareholders' Equity

Balance at Aprill 1, 2017

Capital Stock

Capital Surplus

Retained Earnings

Treasury Shares

Total Shareholders'Equity¥8,670¥5,272¥63,608(¥300)

77,250Changes of Items During The Period
Dividends of Surplus

(572)

(572)

Profit Attributable to Owners of The Parent

2,332

2,332

Purchase of Treasury Shares(7)

Disposal of Treasury Shares

(2)

(2)

20

13

248

Purchase of Shares of Consolidated Subsidiaries

248

Net Changes of Items Other Than Shareholders' Equity

-

241

1,760

17

2,019

¥8,670¥5,514¥65,368(¥283)¥79,270

Total Changes of Items During The Period
Balance at March 31, 2018

Accumulated Other Comprehensive Income
Total
Valuation
Deferred Gains Remeasurements Accumulated
Difference on
Or Losses on of Defined Benefit
Other
Available-forComprehensive
Hedges
Plans
Sale Securities
IncomeBalance at Aprill 1, 2017

¥3,496¥28(¥598)(¥2,926)

Subscription
Righits toShares

NonControlling
Interests¥41¥1,440Total Net
Assets¥81,659

Changes of Items During The Period
Dividends of Surplus(572)

Profit Attributable to Owners of The Parent

2,332

Purchase of Treasury Shares(2)

Disposal of Treasury Shares

13
248

Purchase of Shares of Consolidated Subsidiaries
Net Changes of Items Other Than Shareholders' Equity
Total Changes of Items During The Period
Balance at March 31, 2018

(143)

(9)

279

125

1

(202)

(75)

(143)

(9)

279

125

1

(202)

1,943

¥3,352¥18(¥319)¥3,052¥42¥1,237¥83,602Notes
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 ¥106.24 per U.S.$1, the approximate rate of exchange prevailing on March 30,2018.

THE SHIMIZU BANK,LTD.
15

Consolidated Statement of Changes in Net Assets
Years ended

March 31,2018(Thousands of U.S.Dollars)

Shareholders' Equity

Balance at Aprill 1, 2017

Capital Stock

Capital Surplus

Retained Earnings

Treasury Shares

Total Shareholders'Equity$81,612$49,627$598,726($2,830)$727,136

Changes of Items During The Period
Dividends of Surplus(5,386)(5,386)

Profit Attributable to Owners of The Parent

21,954

21,954Purchase of Treasury Shares(66)

Disposal of Treasury Shares

(25)

(25)

189

123

2,339

Purchase of Shares of Consolidated Subsidiaries

2,339

Net Changes of Items Other Than Shareholders' Equity

-

2,273

16,567164

19,005$81,612$51,901$615,294($2,666)$746,141

Total Changes of Items During The Period
Balance at March 31, 2018

Accumulated Other Comprehensive Income
Total
Valuation
Deferred Gains Remeasurements Accumulated
Difference on
Or Losses on of Defined Benefit
Other
Available-forComprehensive
Hedges
Plans
Sale Securities
IncomeBalance at Aprill 1, 2017$32,909$271($5,634)$27,545

Subscription
Righits toShares

NonControlling
Interests$389$13,558

Total Net
Assets$768,630

Changes of Items During The Period
Dividends of Surplus(5,386)

Profit Attributable to Owners of The Parent

21,954Purchase of Treasury Shares(25)

Disposal of Treasury Shares

123
2,339

Purchase of Shares of Consolidated Subsidiaries
Net Changes of Items Other Than Shareholders' Equity
Total Changes of Items During The Period
Balance at March 31, 2018

(1,351)

(93)

2,627

1,182

13

(1,907)(710)(1,351)

(93)

2,627

1,182

13

(1,907)

18,294$31,557$178($3,007)$28,728$403$11,651$786,924

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 ¥106.24 per U.S.$1, the approximate rate of exchange prevailing on March 30,2018.

THE SHIMIZU BANK,LTD.
16

Consolidated Statement of Cash Flows(Millions of Yen)

(Millions of Yen)

(Thousands of U.S.Dollars)

Years ended
March 31,2017

Years ended
March 31,2018

Years ended
March 31,2018

Cash Flows from Operating Activities
Income Before Income Taxes
Depreciation
Impairment Loss
Increase (Decrease) in Allowance for Loan Losses¥4,043
1,213¥3,294
1,281$31,012
12,057

14

54

512

(1,192)(873)(8,219)

(9)

(6)

(59)

(2,071)(202)(1,904)

Increase (Decrease) in Reserve for Directors' Retirement Benefits

(7)

(22)

(209)

Increase(Decrease) in Provision for Reimbursement of Deposits

(2)

(4)

(39)

(16,444)(15,959)(150,221)

Increase (Decrease) in Reserve for Employees' Bonuses
Increase (Decrease) in Net Defined Benefit Liability

Gain on Fund Management

824

612

5,764

(1,673)(1,296)(12,206)

Loss (Gain) on Money Held in Trust

(12)

(10)

(101)

Loss (Gain) on Disposal of Non-Current Assets

(109)

(4)

(38)

Net Decrease (Increase) in Trading Account Securities

(60)

(8)

(78)

Net Decrease (Increase) in Loans and Bills Discounted(2,565)(24,330)(229,014)

Net Increase (Decrease) in Deposit

19,793(22,541)(212,178)

Net Increase (Decrease) in Negotiable Certificates of Deposit

54,710(59,710)(562,029)

Net Increase (Decrease) in Borrowed Money (Excluding Subordinated Borrowings)

21,52910,941

102,990

(214)

(103)

(975)

11,219(11,219)(105,600)

Net Decrease (Increase) in Foreign Exchanges Assets

(9)

(214)

(2,017)Net Increase (Decrease) in Foreign Exchanges Liabilities

(4)

41

388

Net Decrease (Increase) in Lease Receivables and Investment Assets(64)(1,514)(14,256)

Proceeds from Fund Management

16,728

16,210152,586

Payments for Finance
Other, net(895)(15,852)

(565)
7,807

(5,325)73,493

Subtotal

88,887(98,343)(925,669)

Income Taxes Paid

(1,444)(520)(4,896)Net Cash Provided by (Used in) Operating Activities

87,442(98,863)(930,566)(274,114)
244,457(247,694)
156,397(2,331,459)
1,472,113
326,263

Financing Expenses
Loss (Gain) Related to Securities

Net Decrease (Increase) in Deposit (Excluding Deposit Paid to Bank of Japan)
Net Decrease (Increase) in Call Money

Cash Flows from Investing Activities
Purchase of Securities
Proceeds from Sales of Securities

28,60934,662

Decrease in Money Held in Trust

12

11

111

Purchase of Tangible Fixed Assets

(912)

(404)

(3,812)

Purchase of Intangible Fixed Assets

(107)
363

(171)
426

(1,618)4,010(1,690)(56,773)(534,391)

(11)
(2)

(27)

(254)

(2)

(25)

0

0

0

(570)

(5,359)(19)

Proceeds from Redemption of Securities

Proceeds from Sales of Tangible Fixed Assets
Net Cash Provided by (Used in) Investing Activities

Cash Flows from Financing Activities
Repayments of Lease Liabilities
Purchase of Treasury Shares
Proceeds from Sales of Tresury Shares
Dividends Paid to Non-Controlling Interests

(2)

(569)
(2)

Payments from Changes in Ownership Interests in Subsidiaries That do not Result in
Change in Scope of Consolidation Fin CF

-

(3)

(35)

(586)

(605)
(1)

(5,694)(10)(156,243)
214,968(1,470,662)
2,023,423¥58,725$552,760

Cash Dividends Paid

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 The Period
Cash and Cash Equivalents at End of The Period

585,171
129,797¥214,968

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 ¥106.24 per U.S.$1, the approximate rate of exchange prevailing on March 30,2018.

THE SHIMIZU BANK,LTD.
17

Board of Directors, Corporate Auditors and Executive Officers
As of June 30,2018●President(Representative Director)
Katsuichiro Toyoshima●Managing Directors
Shigeru Nonoyama
Ayato Mochizuki
Yasuhiro Iwayama●Senior Managing Director(Representative Director)
Akihiro Mochizuki●Directors
Fujio Kaneda
Keiko Higashi
Takashi Aizawa
Syunji Usami
Fumitoshi Yabuzaki
Yosuke Wakabayashi●Corporate Auditors
Naoki Tobayama
Akihiro Sei
Youichiro Ito
Kazuaki Isobe

Organization Chart●Executive Officers
Kiminori Sugiyama
Tetsuya Sugiyama
Masahiro Koyanagi
Satoshi Kobayashi

As of March 31,2018

General Meeting of Shareholders

Board of Directors

Chairman

Directors

Management Planning
Division

President

Business Information Office Nagoya

Deputy President

Bangkok Representative OfficeSenior Managing Director
Corporate Administration
DivisionCounselor

Finance Office
Legal OfficeDirectors in Charge
Executive Officers

Secretariat OfficeBusiness Information Office TokyoManagement Committee

Managing Director

Board of Auditors

Auditors

Risk Management Office

General Affairs and Human
Resources Division

Personnel Rating Office

Head Office

Customers

Branches
Branch Advisory Division

Customer Services Office
Loan Center

Markets and International
Division

Securities Office

Credit Division

Operations Division

Operations Center Office

Loan Administration OfficeInternal Audit Division

Mt. Fuji
FUJI

MARKETS AND INTERNATIONAL DIVISIONTEL 81-54-353-5164 SWIFT : SMZGJPJT
http://www.shimizubank.co.jp/

HEAD OFFICENUMAZUSHIZUOKAYAIZU
HAMAMATSUTOKYO
NAGOYATHE SHIMIZU BANK,LTD.
18