Mizuho Financial Group

Integrated
ReportAnnual Review

April 2022 - March 2023

Mizuho has a legacy of striving forsocioeconomic development.
We will continue to act with
foresight and co-createa prosperous future.

1

Mizuho Financial GroupIntegrated Report 2023

2

Be a catalyst for change.

ValuesMizuho’s
Cor porate
Ident i t y

The specific values
and behaviors torealize the Purpose

・・・・・

Act as a trusted partner by always
upholding solid moral principles.

・・・・・・

Work with enthusiasm and dedication.

・・・・・・・・・
・・・
・・・・・

PurposeMizuho’sraison d'être

Adapt to change and take prompt action.
Drive innovation and think outside the box.
Embrace diverse perspectives andcollaboration to gain new insight.

Proactively innovate together withour clients for a prosperous andsustainable future.

Operating responsibly and transparently
with foresight, Mizuho is deeply committed toserving client needs, enabling our people toflourish, and helping to improve society
and the communities where we do business.

Corporate
Philosophy
Our fundamental
approach tocorporate activities

Editorial policy

Importance/simplicity
Mizuho Financial Group

Mizuho has published this Integrated
Report with the intention ofdeepening our communication with
our stakeholders, and sharing
information with them on how Mizuho
will realize the creation of value forour customers, the economy, andsociety. It was edited with concise and clear explanations in astory-like form, and includes financial information as well as
non-financial information on such subjects as ESG.
The content of this Integrated Report was reported to Mizuho
Financial Group’s Board of Directors and Audit Committee, which
are also attended by outside directors, and verified forappropriateness by the Disclosure Committee, before being given
final approval by the President & Group CEO.
We hope this report will further improve understanding ofMizuho and our Corporate Philosophy: “Operating responsibly
and transparently with foresight, Mizuho is deeply committed toserving client needs, enabling our people to flourish, and helping
to improve society and the communities where we do business.”

3

Mizuho Financial Group

Integrated
ReportAnnual Review

April 2022 - March 2023

Integrated Report
This PDF version of the Integrated Report is a digital version of the Forest StewardshipCouncil (FSC)-certified published version, which is printed on FSC-certified paper.

Non-financial

Financial
On our website: Sustainability

On our website: Financials and Presentations• Overview• Customers• Business activities• Environment• Finance and economic education • Social contributions• Employees• Governance• Human rights• Communication• Company briefing materials • Financial statements• Financial documents• Securities reports (Japanese only)• IR event documents• SEC filings• Briefings for individual investors • Financial statements(under US GAAP)

www.mizuhogroup.com/investors/materials

www.mizuhogroup.com/sustainability

Completeness

Guidelines
referred to●The IFRS Foundation’s International Integrated Reporting Framework (revised in January 2021)

Scope ofthe report

Period covered: From April 1, 2022 to March 31, 2023
Also includes some information from April 2023 onwards
Scope covered: In principle, Mizuho Financial Group and its subsidiaries and affiliates

Publication
information

Date of issue: September 2023

●Ministry of Economy, Trade and Industry’s Guidance for Collaborative Value Creation 2.0 (revised in August 2022)

Mizuho traces its roots back to three of Japan's oldest banks, one of which was First National Bank. The earliest of its kind in Japan, 150 years have passed
since First National Bank was founded in 1873.
With the qualitative changes in globalism, a rapid increase in ESG awareness, the social change that accompanies technological advancements, and theacceleration of Japan’s declining birthrate and aging society, we find ourselves in increasingly uncertain times. There is no solution to be found in carrying on as
we have in the past. To pave the way to the future, Japan—together with the rest of the world—must rise to many challenges. Going forward, we will need toconsistently create innovative solutions at an unprecedented pace while working together with people from all kinds of professional backgrounds.
The foresight and integrity of many of Japan’s early industrialists and entrepreneurs, such as Eiichi Shibusawa and Zenjiro Yasuda, have left their mark on
Mizuho’s DNA. We have a legacy of striving for socioeconomic development. Fast-forwarding to the present day, we have the drive to keep one step ahead ofchange and create new value.
It is in this context that we have defined Mizuho’s corporate purpose: “Proactively innovate together with our clients for a prosperous and sustainable future.”
This purpose means we align ourselves with each customer’s efforts toward achieving their goals and aspirations, and when doing so we use our finance andconsulting capabilities to contribute to making the world a better place. It means we work towards a sustainable future together with corporate clients that are
pushing themselves to develop new technologies and businesses, through collaborations with other companies and through business and finance support. And itmeans that we connect all our people, and that each day we are innovating and improving through new perspectives and contributing to a brighter future.
We will challenge ourselves, while supporting the endeavors of our clients, to co-create a prosperous future.
With renewed determination, we have put this purpose into words.

Proactively innovate together with our clients for a prosperous and sustainable future.

Contents
Executive messages / Features

Business strategies for value creation

Data section

P.5
P.11
P.13
P.25
P.29
P.31
P.33
P.37
P.39

P.49
P.61
P.71
P.75

P.105
P.107
P.109

Message from the Group CEO
Message from the Chairperson of the Board of Directors
Feature Growth strategy and medium-term business plan
Message from the Group CFO
Discussion Corporate Identity and growth strategy
Feature Corporate culture transformation initiatives
Discussion Corporate culture transformation
Messages from the CEOs of group companies
Measures for stable business operations

Mizuho’s value creation process
P.41
P.43
P.45
P.47

Value creation process
Capital for value creation
Materiality / Risks and opportunities
Financial data / Non-financial data

Human capital management
Sustainability
Digital transformation
Business strategies by in-house company/unit▏Retail & Business Banking Company▏Corporate & Investment Banking Company▏Global Corporate & Investment Banking Company▏Global Markets Company▏Asset Management Company▏Global Transaction Banking Unit
▏Research & Consulting Unit

Governance for value creation
P.83
P.95
P.98
P.99
P.101
P.103

Corporate governanceRisk governance
Cybersecurity
Compliance
Customer-oriented approach
Stakeholder communication

Eleven-year major financial data (FY2012 – 2022)
Review and analysis for fiscal 2022
Corporate profile

Appendix
P.111
P.113
P.114
P.130
P.131
P.132
P.133
P.134
P.135
P.137
P.139
P.142
P.144
P.152
P.238

Group companies
Three lines of defense
Risk management structure
Business continuity management
Compliance contacts
Internal audit structure
Support for SMEs and regional revitalization
Compliance with international financial regulations
Non-financial data
Senior executives
Location of offices outside Japan
Investor information
Financial Analysis [Under Japanese GAAP]
Basel Regulatory Disclosures
Disclosure Policy

Integrated Report 2023

4

Message from the Group CEO

Masahiro Kihara
Member of the Board of Directors
President & Group CEO
Mizuho Financial Group

Introduction

We are currently living through a time of significant change. The globalization and financial
capitalism that led the post-Cold War growth cycle are in the midst of a qualitativetransformation. The way the world has functioned to date is displaying contradictions andlimitations in the form of issues such as climate change and various socio-economic
disparities. The rapid development of technology is giving us greater possibilities for the
future and, at the same time, confronting us with difficult questions. Further, people’s
experiences during the COVID-19 pandemic are bringing changes in both individual andsocietal values and behavior.
Japan has endured so-called “lost decades” of long-term economic stagnation andcontinues to steadily draw down its presence in the world. Replacement of social
infrastructure and economic renewal have not kept pace with changing demographics,
and it seems this has caused both individuals and society to lose confidence and pride.
On the other hand, drastic changes in the social and business environment are an
opportunity for Japan and the rest of the world to revitalize. This is the first time in history
that individuals and society have faced such numerous challenges and opportunities atonce. We are very much responsible for the next generation. As one of the first countries

5

Mizuho Financial GroupExecutive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Data section

Appendix

Proactively innovate together with our clientsfor a prosperous and sustainable future.
to experience these challenges, Japan has an even greater responsibility than othernations.
What role should Mizuho take in this changing world? What can we do to resolve
challenges and develop opportunities for our clients and society? What is our mission?
What are we here to do? Asking these questions, we sought to re-discover our roots andDNA.
Among Mizuho’s founders were two capitalists and entrepreneurs of early modern Japan:
Eiichi Shibusawa and Zenjiro Yasuda. Both of them were instrumental figures in themodernization of Japan after the Meiji Restoration of 1868. They were open-minded,
connecting various capitalists and other professionals, and had foresight in taking on newrisks and challenges. In particular, Eiichi Shibusawa advocated for pursuing profit basedon morality and for putting the public interest above self-interest. This is our DNA: pursuing
prosperity for our clients, the economy, and society.
With this in mind, we decided to revise our Corporate Identity and also announce our new
medium-term business plan.

Revision of the
Corporate
Identity

The Corporate Identity is important in motivating and uniting our people toward a sharedgoal. From such a perspective, we aimed to come up with a Corporate Identity that would
be simple to remember and easily adopted throughout our organization. We not only
discussed the theme with our directors and executive officers, but also engaged in
multiple dialogues with our employees through employee-led working groups,
questionnaires, and other channels.

Purpose: Proactively innovate together with our clients for aprosperous and sustainable future.
Our Purpose expresses our raison d'être in light of the positive change we wish to deliver
to society through our corporate activities. As such, I was very keen to include a clear
concept of “innovation”. Many younger colleagues also strongly pushed for “innovation”
as an essential element—a way to be more self-driven, invigorate our organization, andregain our pride.
We need to take on the responsibilities and opportunities unique to the financial industry;elevate our empathy and support our clients in facing challenges; and connect the

Integrated Report 2023

6

Message from the Group CEO

innovations of our clients to build a platform forsolving the difficult issues our society is facing. In
doing so, we also need to undertake our own
innovations to become an indispensable partner
for our clients. With this conviction, we chose thewords “innovate together” and set our new
Purpose as “Proactively innovate together withour clients for a prosperous and sustainable
future”.

Values: Be a catalyst for change.
The Values guide our everyday actions andbehavior to achieve the Purpose. Preparing totake the initiative in a time of immense changes
and challenges, we have decided on “Be acatalyst for change” as our core value. In orderto achieve our core value, we have established five Action Principles: Integrity, Passion,
Agility, Creativity, and Empathy.
We will practice empathy in identifying our clients and society’s needs and pain points andact with integrity, passion, agility, and creativity in seeking solutions to them. We willprioritize long lasting prosperity for our clients. We will remain open to a variety of views,
collaborate with a range of stakeholders, and co-create value for the future. All themembers of our organization will uphold these guiding principles and join with you in
pursuing prosperity.

A mediumterm businessplan for the
coming future

The achievements and challenges of the preceding 5-YearBusiness Plan
Four years ago, we put forth our 5-Year Business Plan. The cornerstone of the plan was
fundamental reforms to our business structure, finance structure, and corporate
foundations. We have achieved significant progress in this regard. For example, we haveenhanced our Corporate & Investment Banking model both domestically andinternationally. In particular, our revenue from our US operations has risen twofold. From afinancial perspective, our Consolidated Net Business Profits are set to meet our target for
the final fiscal year of the plan and our Common Equity Tier 1 (CET1) capital ratio has
already met our target, ahead of schedule.
That said, there are areas where we need to improve, such as digital, wealth management,
and commercial banking. Also, the social environment surrounding us has dramaticallychanged. The challenges and needs of our clients and society are becoming more

7

Mizuho Financial GroupExecutive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Data section

Appendix

complex, and we need to transform ourselves. In light of this, we decided to dissolve ourprevious 5-Year Business Plan and establish a new three-year medium-term business plan.

Deliberating by back-casting from our desired future
In the new medium-term business plan, we have identified five initiatives we will focus on,which I will explain in the next section. Taking into account the revised Corporate Identity,
we identified these initiatives by back-casting from the future we want to see. Our longterm goal for the future is to realize personal well-being and a sustainable society andeconomy. Towards this goal, we have established four themes that underpin our vision for
the world in the coming 10 years.
The first is developing a more inclusive society where people with a variety of viewpoints
and from a variety of backgrounds can demonstrate their abilities and ambition, participate
actively in their workplaces and communities, and lead fulfilling lives. The second isextending the benefits of the evolution of technology to all corners of society, allowing
people to enjoy more convenience and a higher quality of life. The third is ensuring Japan
overcomes its many challenges and setbacks, reverses its long decline, and recovers its
competitiveness. The fourth is supporting the implementation process of various
technologies that will contribute to the realization of a globally sustainable society.
Achieving these aims for the world in 10 years will require a range of endeavors across anumber of locations and situations. We will align ourselves closely with the efforts of ourclients and society and connect these efforts with one another. As part of this, we will
discard the common “wisdom” we have held thus far and take on new challenges. Basedon this perspective, our new medium-term business plan encapsulates five specificinitiatives we will focus on in the next three years, following our Purpose of “Proactively
innovate together with our clients for a prosperous and sustainable future”.

For an inclusive society and best-in-class customer experience

The five
specific
initiatives

The first initiative relates to Japanese household financial assets. We are looking to drivea dramatic shift from savings to investment. The rising uncertainty in society calls foralleviating individual customers’ economic concerns about the future. As such, the Kishidaadministration has announced an ambitious plan to double household investment income.
Also, Japanese society as a whole needs to better utilize the current accumulatedhousehold financial assets, which are part of our national wealth, in order to promote a
self-reinforcing positive growth cycle. Doing so would boost society’s overall
competitiveness. To that end, those of us at Mizuho will enhance our professional
expertise and become partners helping our individual customers preserve and grow theirvaluable assets.

Integrated Report 2023

8

Message from the Group CEO

The second initiative is improving customer experience. We will proactively apply cuttingedge technology to consistently provide services that are easy-to-use and stress-free, notonly for the younger generations but also for the older generations. For our corporateclients, we will aggressively seek opportunities to assist them in rationalizing andtransforming their operational processes. We will also look for opportunities to create newfinancial services leveraging technology. On the other hand, customers will choose
customized in-person service in some cases. Keeping this in mind, we will continue to
optimize our customer touchpoints with consideration to the changing needs of ourcustomers and strive to improve our customers’ experience in every channel we provide.

For Japan’s competitiveness and our commitment to global growth
The third initiative is enhancing the competitiveness of Japanese companies. We think
Japan’s prolonged economic stagnation is to some extent attributable to the financial
industry. Meanwhile, Japanese companies’ technology and experience still haveincredible potential. In our regular conversations with our clients, we hear from many
medium-sized companies struggling to improve their corporate value and find successwith the technology that they have accumulated to date.
Conversely, we know that a number of large corporations, both in Japan and around theworld, are searching for cutting-edge technology as they try to create new business fields
and capture growth opportunities. We will support medium-sized companies inrediscovering their competitive technologies and services and expanding their global
footprint. We see this as the fundamental role of financial institutions and, to that end, arecontinuing to strengthen our relevant capabilities.
The fourth initiative is the global Corporate & Investment Banking (CIB) business model.
There are multiple reasons why we continue expanding globally. We can support
multinational companies with their global growth. We can be a bridge between the rest of
the world and Japan for the latest technology and needs in sustainability anddecarbonization. And we can be a leader in dynamically facilitating risk-hedging
opportunities and capital flow across borders. Looking to the world of global finance, wewill strive to provide more integrated, sophisticated financial services and solutions.

For a sustainable society and economy
The final initiative is sustainability and innovation. This theme runs through all of theaforementioned initiatives. Striking a balance between growth and environmental
measures is essential to achieving a sustainable society. By providing sound risk capitaland connecting people and technology, we will uncover the growth companies oftomorrow and develop with them. To that end, we will accelerate cross-sectional
initiatives inside the Mizuho group, while outside the Mizuho group we will build out an
open network with multiple partners, including those in other industries.

9

Mizuho Financial GroupExecutive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Data section

AppendixEnhancement of our corporate foundations and financial targets
We will enhance our corporate foundations, which are essential for our growth. Two crucial
aspects of this are transforming our corporate culture and reinforcing our human capital. In
laying the groundwork for all of our employees to boldly and enthusiastically take on new
challenges, we will endeavor to improve productivity through IT reforms and digitaltransformation. This will enable everyone in our organization to focus on rigorous activities
for value creation. Given the role we play in societal infrastructure, we will also diligently
maintain our stable business operations.
In terms of our financial targets for fiscal 2023, we will maintain the targets we haveestablished in the preceding 5-Year Business Plan, which include Consolidated Net BusinessProfits of ¥900 billion. In our new three-year business plan, we will aim for Consolidated Net
Business Profits in the range of ¥1 trillion to ¥1.1 trillion and Consolidated ROE of over 8% forfiscal 2025 by transforming our operational processes and allocating our resources to focus
areas. We also acknowledge the importance of improving our price-to-book ratio. For ourcapital management policy, while remaining attentive to rising uncertainty and downside
risk, we will pursue an optimal balance between investment for growth and shareholder
returns.

In conclusion

One of my biggest commitments for fiscal 2023 is to reinforce our dialogue with our
stakeholders. In particular, I look forward to having constructive discussions with ourshareholders about improving our operation. I am steadily sensing signs of change and havehigh expectations for our organization going forward. At the same time, our initiatives have
only just begun. The coming year is a critical one for paving the way towards the future, andwe will spare no effort in doing so.

July 2023

Member of the Board of Directors
President & Group CEO
Mizuho Financial Group

Integrated Report 2023

10

Message from the Chairperson of the Board of Directors

Further deepening coordination withindividual group companies and continuing to
strive for highly effective supervision groupwide
Operation of the Board of Directors in fiscal 2022
In fiscal 2022, the Board of Directors pursued rigorous
activities with an emphasis on two main topics: (1)furthering deliberation about the overarching direction ofMizuho group’s growth strategy, and (2) exercising
functions for management of top risks.
For the first topic, due in large part to the leadership ofGroup CEO Masahiro Kihara and the support of Mizuho
employees, we were able to begin discussions on the
Corporate Identity revision and the growth strategy at an
early stage. These discussions were perfectly aligned
Izumi Kobayashi
with several needs the outside directors had also
Outside director
identified: rallying employees, many of whom had losttheir confidence in the wake of the IT system failures,(Chairperson of theunder an approachable banner and leading them forward
Board of Directors)
again; going back to the starting point of Mizuho’s role in
Mizuho Financial Groupsociety to inspire pride in employees; and taking theopportunity of the recent change in the Group CEO totransform Mizuho. In particular, in the course ofdesigning the new Corporate Identity, there was muchback-and-forth between employees, executive
management, and the outside directors, and I believe
such exchanges were deeply meaningful.
For the second topic, we monitored how the measures
for improvement that came out of the IT system failures
were being implemented and disseminated. Executive
officers and employees have been undertaking initiatives
as a united front. With these initiatives steadily producing
results, we are moving into a new phase of ensuring theinitiatives take root in the organization and are reflectedin every employee’s day-to-day work. Also, the risks
accompanying societal changes are becoming
increasingly diverse and complex. While we remain
vigilant to the obvious risks related to cybersecurity,money laundering, financial crime, and climate change,
we also must keep a sharp eye on the various risks andripple effects associated with such factors as geopolitics
and sudden changes in the financial environment.
11

Mizuho Financial GroupExecutive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Mizuho’s efforts alone are not enough to avoid theserisks; resilience is critical. With this in mind, the Board of
Directors, Audit Committee, and Risk Committee held
discussions—based on their respective roles—with thebusiness execution line about the vision for Mizuho’sbusiness and about improving the frameworks for
managing risk.

Initiatives for multifaceted information gathering
Alongside setting topics for discussion, another task towhich the outside directors gave particular attention was
gathering information on the many different aspects ofbusiness execution. As a holding company, Mizuho
Financial Group has multiple subsidiaries; Mizuho Bank,
Mizuho Trust & Banking, and Mizuho Securities among
them. Through frameworks for comprehensive risk
management, compliance, and similar areas, it performs
business management for the entire group, covering thesubsidiaries as well. To facilitate the provision of
integrated banking, trust banking, and securities
functions to customers, it also sets strategy for each of
the in-house companies—each of which serve a specificcustomer segment—and then tracks implementation.
Given the nature of Mizuho Financial Group as a holding
company, discussions at the Board of Directors ofMizuho Financial Group tend to focus on priority topics,
with a broad view of the Mizuho group as a whole.
Consequently, directors—especially outside directors—cannot easily gain an in-depth understanding of thesituation and condition of business at individual groupcompanies or of the actual business operations at thefrontlines of individual group companies. I have come tosee that, if we are to fully utilize our capabilities as
outside directors and by extension maintain effective
supervision, we should make a greater effort tounderstand the actual conditions of the Mizuho group’s
operations in all of their assorted dimensions. In fiscal
2022, one of our initiatives in this regard was toproactively create more opportunities to talk withexecutive officers and employees responsible for avariety of functions within the group. In addition to thereports from the heads of the in-house companies, we
also had reports from and meetings with the executive
management of the individual group companies, as well
as regular meetings between the outside directors ofMizuho Financial Group and the outside directors of theindividual group companies. All of the outside directors
found these initiatives to be very worthwhile andenthusiastically participated in such off-site meetingsand other activities.

Governance for value creation

Data section

Appendix

Operation of the Board of Directors in fiscal 2023
In fiscal 2022, due to the vigorous drive of Group CEO
Kihara and the wide-ranging engagement from the rest of
the organization with the revision of the Corporate
Identity and Purpose and the formulation of the mediumterm business plan, Mizuho’s direction going forward
became clear.
However, to truly win the trust of customers and society
and secure a growth trajectory will require more thanjust a plan. It will require every employee to become wellversed in the Corporate Identity, Purpose, and mediumterm business plan so that they can confront thechallenges of customers and society as their own andmake such an ethos the pillar of their everyday work.
Mizuho’s ability to be an effective organization in thisway will be subject to much scrutiny.
In my role as Chairperson, I intend to lead the Board of
Directors through fiscal 2023 from just this perspective.
The leadership of the Group CEO and the other membersof executive management will naturally be key. On theother hand, Mizuho also encompasses the employees
who meet customers on a daily basis; the generalmanagers and other members of middle management
who assist employees in developing their capabilities;
and the employees in back office who support front office
operations and contribute added value in a number ofways. I will also listen carefully to these members of theorganization and do everything I can to move forward
executive management’s initiatives for drawing out thefull potential of the organization. By the same token,
when necessary, I will not hesitate to hold backinitiatives until we have given them the time andconsideration they deserve.
Of course, it is not realistic or efficient for the Board of
Directors of Mizuho Financial Group, the holding
company, to carry out all of these activities on its own.
Because of this, at the start of fiscal 2023, we, the Boardof Directors of Mizuho Financial Group, exchanged theabove-mentioned perspectives and relevant action plans
with the Boards of Directors of Mizuho Bank, Mizuho
Trust & Banking, and Mizuho Securities. We will further
deepen the coordination between the outside directorsof Mizuho Financial Group and those of each individual
group company and continue striving for highly effective
supervision group wide.

Integrated Report 2023

12

Feature

Growth strategy andmedium-term business plan

Corporate Identity revision and new growth strategy
In May 2023, Mizuho revised our Corporate Identity and announced our new medium-term business plan, which we launched one year ahead of schedule.
In light of drastic shifts in the external environment and our aim of enabling sustainable growth, we put an emphasis on the following points.
⃝Returning to our roots as a company and positioning the new Purpose and the growth strategy as an integrated set⃝Ensuring executive officers and employees share a common direction for growth over the long term and treat the immediate future as afirst step towards that growth⃝Implementing flexible business development and collaboration that transcends existing boundaries in order to achieve
the growth strategy
Based on the assumption that we will meet our original target for fiscal 2023—our target for the final year

ng
sti
a
c
ck
a
B

of the 5-Year Business Plan—we are starting anew and making fiscal 2023 the first year of the new
medium-term business plan.

Medium New medium-term
term
business plan
(FY2023 – FY2025)
FY20235-Year Business Plan
(FY2019 – FY2023)
Forward-looking structuralreforms to build a stronger andmore resilient financial groupwhich our customers candepend on in the coming era

Make the most effective use of corporate
resources through a flexible businessdevelopment approach
Together with our clients and society, build
the cornerstone of future sustainablegrowth and prosperity

10-yearview

More distantfuture13

Mizuho Financial GroupA three-year journey connecting various
initiatives and co-creating value-added
solutions in order to support our clientsand solve social issues

Purpose

Proactively innovate together with our

Corporate Philosophy... Our fundamental approach to corporate activities

Operating responsibly and transparently with foresight, Mizuho is deeply committed to serving clientExecutive messages / Features

Mizuho’s value creation process

Business strategies for value creation

ng
sti
a
c
ck
a
B

10-yearview

10-year milestones forachieving the long-term vision

Governance for value creation

Data section

AppendixMizuho’s vision for the world(our long-term goal for the future)
Personal well-being anda sustainable society and economy

Mizuho’s aim forthe world in 10 years▶Progress towards a more inclusive society▶Widespread adoption of innovative technology
such as AI▶Reversing Japan’s decline and putting
the Japanese economy on a growth trajectory▶Accelerating the move towards global
sustainability

clients for a prosperous and sustainable futureneeds, enabling our people to flourish, and helping to improve society and the communities where we do business.

Integrated Report 2023

14

Feature

Growth strategy andmedium-term business plan

Revision of the Corporate Identity: Establishing our Purpose
Given the drastic changes in the internal and external environments around us, we once more thoroughly considered what sort of value we can provide to ourclients and society and what sort of contributions we can make. We were looking to have all of us at Mizuho fully share a common direction and a set ofvalues. This was our goal in revising the Corporate Identity and establishing the new Purpose.

Corporate
Philosophy

Operating responsibly and transparently with foresight, Mizuho is deeply committed to serving client needs,
enabling our people to flourish, and helping to improve society and the communities where we do business.

Among Mizuho’s founders were two capitalists and entrepreneurs of early modern Japan: Eiichi Shibusawa and Zenjiro Yasuda. Both of them were instrumental

Eiichi Shibusawa

Zenjiro Yasuda

Courtesy of the Shibusawa
Memorial Museum

Courtesy of the National
Diet Libraryfigures in the modernization of Japan after the Meiji Restoration of 1868. They were open-minded, connecting various capitalists and other professionals, andhad foresight in taking on new risks and challenges. Their actions were based in their belief in morality and in putting the public interest above self-interest.
Their responsibility, transparency, and foresight are still at the core of Mizuho’s identity. Unprecedented paradigm shifts are taking place, and society isconfronting a plethora of urgent challenges. Japan has famously found itself at the forefront of these trends. The new Corporate Philosophy reaffirms therelevance of Mizuho’s legacy to both the present and future and carries forward the essence of what came before.

Purpose

Proactively innovate together with our clients for a prosperous and sustainable future.
We will accompany each client as they take on the challenge of achieving
their dreams, and through the power of finance and consulting we willcontribute to their efforts to lead a prosperous life

We will challenge ourselves, while supporting the endeavors of ourclients, to co-create a prosperous future. The new Purpose
expresses this unwavering determination.

ValuesBy providing business support and financing, we will walk the path
toward a sustainable society side by side with our corporate clients asthey strive to develop new technologies and businesses
All of us at Mizuho will stand united, exercising innovation in our pursuitof day to day improvements and development, and challenging ourselvesto change the future

Be a catalyst for change.

Designed to realize the Purpose, the Values encompass the above core value thateveryone at Mizuho should aim to embody every day and five specific action
principles to support it.

Integrity Act as a trusted partner by always upholding solid moral principles.
Passion Work with enthusiasm and dedication.
Agility
Adapt to change and take prompt action.
Creativity Drive innovation and think outside the box.
Empathy Embrace diverse perspectives and collaboration to gain new insight.

Highlight : Communication through employee surveys
Many of the ideas for the new Corporate Identity came out of the employee surveys weconducted on multiple occasions.
For the Purpose, employees volunteered a variety of ideas about ways to incorporate keywords
such as “future”, “together”, “innovate”, and “change” and express Mizuho’s unique character.
Involving employees in the process of formulating the new Corporate Identity in this way was animportant first step towards instilling in employees throughout the organization a sense ofownership over the new Corporate Identity. In addition to the employee surveys, executive
management sent out messages on the progress of the revision process on several occasions, asa means of two-way communication.

15

Mizuho Financial GroupExecutive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Data section

AppendixMizuho’s vision for the world and our growth strategy
In determining Mizuho’s direction going forward, we first established our long-term vision for the world and our aims for the world in 10 years’ time, and we thendeveloped a growth strategy for achieving these. We also confirmed our materiality areas and compiled the initiatives we should pursue over the next three years
into a new medium-term business plan.

Mizuho’s vision for the world (our long-term goal for the future)
Personal well-being

Sustainable society and economy◦A society where people live actively and without anxiety about the future◦Japan overcoming societal challenges and regaining global competitiveness◦Coexistence between humans and technology◦Achievement of global sustainability

Our aim for the world in 10 years
Progress towards a more inclusive society◦Higher income through economic growth, investment in humancapital and digital transformation, and similar◦Increase in household asset-based income, set off by Nippon
Individual Savings Accounts (NISAs)◦Society where people with a variety of viewpoints and backgrounds
can demonstrate their ability and ambition

Reversing Japan’s decline and putting theJapanese economy on a growth trajectory◦Rise of next-generation technology and companies◦Continuous co-creation of new value through corporate partnerships◦Japan leading the world with globally competitive technology

Virtuous cycle

Widespread adoption of innovativetechnology such as AI

Accelerating the move towards
global sustainability◦Extending the benefits of the evolution of technology to allow people
to enjoy greater convenience◦More opportunities to learn and grow available to anyone with
ambition◦The world coming together organically and accelerating initiatives torealize a low-carbon society / circular economy

Growth strategy direction aiming for 10 years in the future
Based on our foresight, we are working to enable greater personal well-being and a sustainable society and economy. To this end, we willproactively innovate together with our clients, the economy and society, and our colleagues to achieve our aims for the world in 10 years’ time.
Materiality areas:

Declining birthrate
and aging population,plus good health andlengthening lifespans

Industry development
and innovationSoundeconomic
growthEnvironmentand society

Personnel

Governance⇒P.45 Materiality

New medium-term business plan (three years)
A three-year journey connecting various initiatives and co-creating value-added solutions
in order to support our clients and solve social issues
Make the most effective use of corporate resources through a flexible business development approach
Together with our clients and society, build the cornerstone of future sustainable growth and prosperity

Integrated Report 2023

16

Feature

Growth strategy andmedium-term business plan

Overview of the medium-term business plan
Approach of the medium-term business plan
Structural changes in society, the economy, and industry are advancing rapidly. With these changes, client needs and social issues are becoming increasingly
complex and challenging. In response, we will further deepen the expertise we have cultivated under the existing in-house company system while connecting
our capabilities beyond the boundaries of business segments and functions. In doing so, we will innovate to develop new solutions, look to reap the benefitsof our growth over the next three years, and lay the foundation for sustainable growth going forward.
Also, through transforming our operational process and reviewing our business portfolio, we will effectively reallocate corporate resources (personnel, capital,
IT investment, etc.) from underperforming or inefficient areas to growth areas.

Basic policy of the new medium-term business plan (FY2023 – FY2025)

A three-year journey connecting various initiatives and co-creating value-added solutions
in order to support our clients and solve social issues
Make the most effective use of corporate resources through a flexible business development approach
Together with our clients and society, build the cornerstone of future sustainable growth and prosperity
Priority areas for addressing social issues and achieving sustainable growth
Our aim for the world in 10 years

Business focus areas

Progress towards a more
inclusive society

Support for the doubling of asset-based income

Widespread adoption of
innovative technology such as AI

Improving customer experience
Enhancing the competitiveness of Japanese companies

Reversing Japan’s decline and putting theJapanese economy on a growth trajectory
Accelerating the move towards
global sustainability

Enhancing our corporate
foundations

Sustainability and innovation
Global Corporate & Investment Banking (CIB) business model
Corporate culture transformation

Human capital enhancement

Digital transformation

IT reforms

Maintenance of stable business operations

Highlight : Connecting beyond existing boundaries to create new value and solutions
Creating new solutions requires being able to understand the client’s
business model in depth and produce a narrative for growth. When
we work with our clients to do this, we leverage our strengths, suchas our insights into sustainability and our competitive advantages inJapan and the rest of Asia. We will be an active part of designing
growth narratives, and we will connect the information andopportunities that are borne from these narratives both within andoutside the group.

17

Mizuho Financial Group⃝Japan’s large corporations, middle-market firms, and startups/innovative
companies are facing unique challenges. By connecting their needs
with technology and opportunities, we will contribute to enhancing
their corporate value and revitalizing the Japanese economy.
⃝We will connect multinational corporations, startups/innovative
companies, and investors and produce both inbound and outboundopportunities, with Japan as a bridge.

Executive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Data section

Appendix

Targets in the new medium-term business plan
Approach to business targets
In line with our Purpose, which is to “Proactively innovate together with our clients for a prosperous and sustainable future”, we take an integrated approachto creating social value and enhancing corporate value.
At Mizuho, we aim for our business activities to have a positive impact on society. Creating social value enhances our own corporate value, which in turnproduces capital we can direct to creating further social value. We are looking to achieve this sort of virtuous cycle, where we can concurrently create social
value and corporate value.

Business targets in the medium-term business plan
We will seek out ways to have positive social impacts in areas such as the expansion of household financial assets in Japan, realization of a more inclusive
society, improvement in Japan’s global competitiveness, and transition to net-zero carbon emissions worldwide. As we do so, we will create social value andenhance corporate value.
We have set our financial targets as Consolidated ROE of over 8% and Consolidated Net Business Profits in the range of ¥1 trillion to ¥1.1 trillion. These
financial targets will open a pathway towards bringing our price-to-book ratio (P/B ratio) above 1 in the future. We are also remaining focused on our humancapital, which is an especially critical non-financial asset. Accordingly, we have set targets for improving both employee engagement and inclusion.
In establishing this new medium-term business plan one year early, we set fiscal 2023 financial targets based on the assumption that we will meet our original
target for fiscal 2023, the final year of the 5-Year Business Plan.

Mizuho’s vision
for the futureManagement
strategy

Financial
capitalBusinessstrategyNon-financial
capitalEnhancing ourcorporate
foundations

A sustainable society
and economy

Creating social value
Enhancing corporate value
Medium-term businessplan targets

Management
capitalPersonal well-being

Consolidated ROE1
over 8%
Consolidated Net Business Profits2¥1 trillion – ¥1.1 trillion
Engagement score3
Inclusion score3

Pursuing positive social impacte.g., household financial assets, Japan’s

65%
65%

global competitiveness ranking, market
capitalization of Japanese companies

Expansion of management capital (input)[Assumed financial indicators] JGB (10-yr): 0.95%, Nikkei 225: ¥30,000, USD/JPY: ¥120 (FY2025)
1. Excluding Net Unrealized Gains (Losses) on Other Securities. 2. Consolidated Net Business Profits + Net Gains (Losses) related to ETFs and Others.
3. Based on the positive response rate (selection of 4 or 5 on a scale from 1 to 5) for four Staff Survey questions related to engagement and inclusion.

Initiatives to improve the P/B ratio

ROE⃝Improve capital efficiency⃝Generate expectation for growth
Achieve steady and stable profit growth, maintain adequate balance in using capital, improve financial
soundness (Mizuho-specific factors)
Contribute to the growth of the Japanese economy through implementation of the Corporate Identity
and Purpose (macro factors)⇒P. 25 Message from the Group CFO

P/B ratio >1

Improve
capital8%
efficiency
Current

P/B ratio
Approx. 0.6

Generate expectation
for growth
Decrease

8% Cost of capital (broadly defined)

Integrated Report 2023

18

Feature

Growth strategy andmedium-term business plan

Business focus areas

Retail business in JapanAt Mizuho, we are taking part in efforts to double household asset-based income in Japan* by providing individual customers with services for asset
formation, management, and succession. We are also improving customer experience, both digital and in-person. Digital transformation and improved
productivity will lead to increases in income, and greater adoption of Nippon Individual Savings Accounts (NISAs) and individual-type defined contribution
pension plans (iDeCo) will lead to increases in household asset-based income specifically. Through these initiatives, we will contribute to our customers
achieving personal well-being as part of our long-term goal for the future.
* The Kishida administration has announced the Doubling Asset-based Income Plan, which encourages the shift of excess household funds from savings into investment.

Support for the doubling of asset-based income⇒P. 77 Retail & Business Banking Company⇒P. 81 Asset Management Company

Growth narrative
With NISAs as a catalyst, we will further expand the base of individual customers who are interested in investment andasset formation. At the same time, we will leverage our strength in providing consulting as a unified group to capture needs
for asset management and asset succession. Through such services, we will grow together with our customers.

Key initiatives during the medium-term business plan
Make NISAs a core part of the Mizuho brand⃝Improvement of customer experience : In-person consulting at branches, remote consulting through online channels, outreach to employees ofcorporate clients, convenience of websites and apps
⃝Enhancement of human capital : Continued dedication to customer-oriented business operations, comprehensive asset consulting that integratesbanking, trust banking, and securities⃝Investment products : Wide lineup ranging from entry-level products tailored for NISAs’ installment-type / long-term investment style to moreadvanced products covering multiple asset classes or alternative investments
Business⃝Number of NISAs / iDeCo accounts ⃝Balance of individual assets under management⃝Balance of publicly offered investment trust assets under management

Personnel

We will encourage acquisition of personal consulting expertise as one step for customer-oriented
business operations.
⃝Personal consulting (Certified Skilled Professionals of Financial Planning 1st-grade or Certified Financial
Planners): 2,100 employees (FY2025 target)

KPIs

Improving customer experience⇒P. 77 Retail & Business Banking Company

Growth narrative
We will pursue greater convenience through comprehensive digitalization and through alliances and cooperation withother companies. This will make our deposit accounts more attractive and allow us to secure the stable individual deposits
necessary to provide funding to customers, industry, and society. It will also bring in a future customer base for ourinvestment and asset management business.
By shifting to paperless and streamlining branch operations, our branches will focus on providing in-person consulting to meet ourcustomers’ needs more effectively.

Key initiatives during the medium-term business plan
Achieve best-in-class customer experience by improving customer touchpoints across both digital and in-person channels⃝Investment in digital : Provide digital services that allow retail customers and corporate clients to complete transactions and administrative matterswithout visiting a branch⃝Branch reforms : By shifting more basic or administrative services to self-service, turn branches into spaces for providing in-person consulting tocustomers
Business⃝Mizuho Direct (online banking website/app for individual customers) monthly active users⃝Branch self-service tablet usage rate

Personnel⃝Further strengthen employees’ ability to identify customer pain points and develop and implement
solutions(For more details on digital transformation personnel, please refer to “Digital transformation” on p. 23.)

KPIs

19

Mizuho Financial GroupExecutive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Data section

Appendix

Corporate business in JapanAt Mizuho, we are supporting our corporate clients by connecting their businesses and opportunities across different sizes—from small to medium to large—
and different stages—from startup to growth to public offering. In doing so, we are strengthening the competitiveness of Japanese companies. This isenabling us to contribute to efforts to return Japan’s economy to a growth trajectory and restore Japan’s global competitiveness, and it is also helping with thetransition to a low-carbon society and circular economy. Through these initiatives, we are contributing to realizing a sustainable society and economy as partof our long-term goal for the future.

Enhancing the competitiveness of Japanese companies⇒P. 77 Retail & Business Banking Company⇒P. 78 Corporate & Investment Banking Company

Growth narrative

As we continue to thoroughly support business growth and enhancements to corporate value, we will connect large corporations,
small- and medium-sized enterprises (SMEs) and middle-market firms, and startups/innovative companies to facilitate creation of
new value. In doing so, we will positively contribute to enhancing the competitiveness of Japanese companies.

Key initiatives during the medium-term business plan

⃝Large corporations : Leverage our industry insights and expertise throughsector-specific business structure and advance co-creation of value acrosssectors; engage with a focus on sustainability measures for industry as awhole
⃝Listed middle-market firms (mid-cap corporates) : Identify target
middle-market firms with consideration to technological capabilities andbusiness areas and provide thorough support for firms to grow theirbusinesses and enhance their corporate value, including by facilitating
access to capital markets⃝Middle-market firms and SMEs : Support business succession throughfinancial and tax consulting and M&A capabilities⃝Startups/innovative companies : Support corporate growth by utilizing
Mizuho’s network and providing risk capital

Enhancing the competitiveness of Japanese companies
Business growth

Corporate value

Large
ListedMiddle-market Startups/innovative
corporations middle-market firms firms and SMEs
companies
Co-creation /growthTechnologicalcapabilities

Global businessexpansion

Sustainability/transition measures

Business
succession

Innovation

Connect strengths, needs, and opportunities

Business⃝Provision of solutions to corporate clients⃝Greater activity in / expanded access to capital markets in Japan

Personnel

We need to have the insight to delve deeper into global megatrends such as sustainability, as well as into industry
trends and client needs. We also need to have the creativity to design growth stories or equity stories with our
corporate clients. We are establishing an in-house system to certify employee skills in supporting startups/innovative
companies and in business succession. We are also facilitating internal communication of achievements, experience,and knowledge to support our clients. Through these programs, we are developing personnel who will lead ourorganization.
⃝Startups/innovative companies (in-house certified personnel) +200 employees (FY2025 target)⃝Business succession (in-house certified personnel) +100 employees (FY2025 target)

KPIs

Highlight : Reversing Japan’s decline and putting the Japanese economy on a growth trajectory
Japan has been enduring economic stagnation for a prolonged period. Listed middle-market firms have struggled to increase their market capitalization, and alarge proportion of household financial assets has remained in cash and deposits.
Even so, Japanese companies still have technologies and products with incredible potential, and household financial assets are finally beginning to shift fromsavings to investment.
As such, there is the potential for households to further shift financial assets to investment and for Japanese companies to achieve further growth. The
accompanying rise in corporate value would set off a rise in stock prices, which would in turn increase household financial assets. The improvement andgrowth in companies’ performance would also lead to higher wages, enriching households further and driving even larger upturns in individual consumption
and investment. This is the sort of future we at Mizuho are imagining for Japan.
We will continue aiming for this, under our Purpose to “Proactively innovate together with our clients for a prosperous and sustainable future”.

Integrated Report 2023

20

Feature

Growth strategy andmedium-term business plan

Business focus areas

Sustainability-related business
At Mizuho, we are bringing together our insights and our financial and non-financial services to enable sustainability and new innovations. By connecting theworld organically and supporting the movement for sustainability through a low-carbon society / circular economy, we will contribute to the achievement of asustainable society and economy.

Sustainability and innovation⇒P. 61 Sustainability

Growth narrative

In addition to forming a framework to provide funding for transition in industry/business structure, we will facilitate
application and commercialization of new technology and generate opportunities for new business.

Key initiatives during the medium-term business plan
⃝Development of comprehensive design : Connect industries, technology, and the public and private sectors towards achieving carbon neutrality by
2050⃝Funding support for transition : Form framework to provide funding for transition, expected to be large-scale⃝Government and academic network : Proactively participate in policy proposals and rule-making⃝Creation of new business : Thoroughly develop individual business areas such as decarbonization
・E xamples : Development of supply chains for hydrogen and ammonia; restructuring of Japan’s energy supply network; development of supply
chain for carbon capture, utilization, and storage (CCUS); development of carbon credit market; development of platform for battery recycling;development of new technologies for transition; etc.

⃝Extension of our strengths / development of personnel : Deepen our insights into industry and the environment and develop personnel in order tofurther extend our strengths

Business⃝Sustainable finance and environment and climate-related finance

Personnel

To respond to the various challenges our clients are facing, we will further increase the number ofsustainability consultants at Mizuho Research & Technologies, who make up one of the unique attributes ofMizuho. Also, we are encouraging relationship managers for corporate clients to acquire qualifications insustainability as part of ensuring they have the foundational knowledge to discuss ESG- and SDG-related
business issues with a wide range of clients. We will update our qualification requirements as necessary, inline with changes in societal expectations.
⃝Environmental / energy sector consultants: 150 employees (FY2025 target; approx. 130 as of FY2022)⃝Sustainability management experts (in-house certified personnel): 1,600 employees (FY2025 target;
approx. 1,300 as of FY2022)

KPIs

21

Mizuho Financial GroupExecutive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Data section

AppendixGlobal business
At Mizuho, we do business in global financial and capital markets by considering specific regional characteristics and our strengths in each region. We look todemonstrate these strengths in focus markets, in particular the Americas and Asia. As the world becomes more complex, we will gain further businessexperience in such focus markets, connect Japan and other local markets on a global scale, and leverage these connections towards solving the challenges
facing Japan and other countries. In this way, we will contribute to the achievement of a sustainable society and economy as part of our long-term goal for the
future.

Global Corporate & Investment Banking (CIB) business model⇒P. 79 Global Corporate & Investment Banking Company⇒P. 80 Global Markets Company

Growth narrative

One of Mizuho’s strengths is our Corporate & Investment Banking business model in the Americas, which integratesbanking and securities operations as well as primary and secondary markets business. As we further enhance these
integrated functions, we will also scale up our transaction banking and capital markets business in Asia.

Key initiatives during the medium-term business plan
⃝Americas : Use our substantial presence in debt capital markets (top 10, ranking in after US banks) as a base to further deepen our presence in equity
capital markets, M&A, and primary business-linked sales and trading (S&T)✓ Offering both balance sheet and investment banking / financial markets products✓ Business expansion in both primary market (issuer-side) and secondary market (investor-side)⃝Asia : Expand transaction banking business, capturing trade flows with companies entering Asian markets, using trade finance as a starting point, andemploying an approach that balances the cohesiveness of our network in Asia with each jurisdiction’s specific characteristics; adopt the Americas model
for success in derivatives and capital markets⃝EMEA : Transition to a lightweight, selective CIB business model, with an emphasis on sustainability for this region⃝Capturing of new growth opportunities : Generate business opportunities in new energy such as hydrogen and ammonia and in the digital andstartup fields—including for investment in Japan—across India, Australia, the Middle East, and similar locations

Business⃝Presence in US capital markets⃝Transaction banking in Asia

Personnel

While raising Mizuho’s profile in each region, we will secure high-quality local talent that has expertise in eachmarket and is capable of leading our business, and we will maintain the high percentage of locally hired
employees in management positions at our offices outside Japan. We will also cultivate a more globally minded
corporate culture by proactively sending employees hired in Japan on international assignment. We will
especially focus on sending early-career employees on assignment to the Americas so that they can gain
experience doing business with non-Japanese companies. This will enable them to return to Japan familiar withadvanced financial technology outside Japan and adept at making high-level proposals.
⃝Percentage of management positions outside Japan filled by employees hired outside Japan:
Maintain at or above 83%⃝New international assignees from Japan: 150 employees (over three years)

KPIs

Integrated Report 2023

22

Feature

Growth strategy andmedium-term business plan

Enhancing our corporate foundations

Corporate culture transformation⇒P. 31 Feature: Corporate culture transformation initiatives⇒P. 49 Human capital management

We are undertaking cultural transformation throughout the group, with initiatives kicked off by the establishment of theGroup Chief Culture Officer (Group CCuO) and the Culture Transformation Project Team in December 2022. Both theexecutive officer position and the project team came out of recommendations from employee-led working groups, and the
project team was merged into the new Corporate Culture Office in April 2023. Through integrated promotion of internal
communication and brand communication, we will improve employee and customer engagement.

Key initiatives during the medium-term business plan

⃝Promote internal communication for corporate culture transformation; improve employee engagement through regular dialogue between employees andexecutive management, particularly the Group CEO and CEOs of group companies⃝Promote brand communication to improve our brand value; provide brand experiences that convey the meaning of the Purpose while deepening
relationships

Human capital enhancement⇒P. 49 Human capital management

In April 2024, we will launch a new HR framework for Japan, called CANADE, that will align with the goals of individual
employees and unify HR management across the five core companies.* Providing employees with a sense of purpose andsupport will enable them to improve their expertise and capabilities. By developing our personnel in this way in line with
our strategy, we will enhance our human capital.

Key initiatives during the medium-term business plan

⃝Strengthen personnel capabilities⃝Produce personnel who will lead the organization⃝Create a workplace environment that draws out latent potential: Support taking on challenges, reward contributions, and provide a supportive working
environment* Mizuho Financial Group, Mizuho Bank, Mizuho Trust & Banking, Mizuho Securities, and Mizuho Research & Technologies

Digital transformation⇒P. 71 Digital transformation

We have consolidated digital transformation functions under the Group Chief Digital Officer (Group CDO). Having done so,
we are advancing integrated digital transformation through the efforts of our unique group companies, in particular Mizuho
Research & Technologies and Mizuho-DL Financial Technology.

Key initiatives during the medium-term business plan

⃝Reinforce incubation and scaling capabilities by leveraging group strengths to their maximum extent⃝Continually advance digitalization of operations and associated improvements to productivity⃝Bolster foundations for digital transformation by developing digital transformation personnel and facilitating data utilization
KPIs

Personnel

We have launched a group-wide digital transformation employee development
program to cultivate two categories of personnel: (1) Digital transformation personnel
who have high-level digital expertise and are capable of leading clients’ and Mizuho’sbusiness transformation (mainly experts in Mizuho Research & Technologies andMizuho-DL Financial Technology), and (2) Digital transformation basics personnel who
are literate in digital transformation and are capable of applying it to their own work.
⃝Digital transformation: Digital Transformation Skills Certification Lv. 4(equivalent to Level 31 or above in the Skill Standards for IT Professionalsof the Information Technology Promotion Agency, Japan)
100 employees (FY2025)⃝Digital transformation basics: Digital Transformation Skills Certification
Lv. 2 (equivalent to Level 12 or above in the Skill Standards for IT
Professionals of the Information Technology Promotion Agency, Japan)
1,000 employees (FY2025)
1. Able to perform all assigned duties and lead projects independently.
2. Has the basic minimum knowledge required to promote digital transformation.
Information Technology Promotion Agency, Japan: https://www.ipa.go.jp/en/

23

Mizuho Financial Group

Digital transformation personnel
Lv.5

6 personnel categories
Business architect

Pro

Designer
Data scientist

Lv.4

Software engineer

Advanced
Lv.3

Lv.2
Lv.1

Cybersecurity
Digital advisor

Digital transformation
basics personnel

Executive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Data section

Appendix

IT reforms
While allocating the necessary resources to continue stable business operations, wewill review the structure of existing IT systems, and we will reinforce maintenanceand operation frameworks, including by incorporating new technology. In this way, we
will streamline investment for IT system maintenance and upgrades. Doing so will
enable us to secure reserves for investing in the creation of new business and services
and so contribute to the achievement of sustainable growth for Mizuho.

IT investment

Key initiatives during the medium-term business plan

⃝Review structure of existing and new IT systems; review products, services, and operations⃝Coordinate with user departments for higher level IT development and operation and for IT investment
management⃝Governance such as system visualization and risk management⃝Increase the number of IT personnel who are able to understand the nature of Mizuho’s business and facilitate
it with IT systems

Review existing IT systems
and undertake overall
System structure optimization
optimization(resolve any disorganization)

Governance
Visualize IT system information,enhance risk management framework,etc.

IT management reforms

IT reforms

Revenue growth,
productivity
improvements, etc.
Maintenance ofexisting systems

Reinforce development andoperation and IT
investment management

Enhancement of
IT personnel and frameworks

Review of products,
services, and operations

Develop personnel, build sustainable
relationships with partner companies

Conduct group wide (business process re-engineering,elimination of products, services, and operations, etc.)

KPIs⃝Group-wide IT expense trends⃝Percentage of investment in new business and services and in improvements to productivity withinoverall IT investment

Maintenance of stable business operations⇒P. 39 Measures for stable business operations⇒P. 83 Governance for value creation

We are dedicated to stable business operations as an essential component of our growth strategy, of the corporate
foundations that support the growth strategy, and of everything we do here at Mizuho.
In light of the series of IT system failures in Japan in 2021 and 2022, we have put in place preventative measures, elevatedour ability to respond to system failures, and strengthened our governance. Beyond this, we are further reinforcing ourstable business operations through measures such as addressing new risks that arise from changes in the business andsocial environment and from more stringent legal and societal requirements.

Key initiatives during the medium-term business plan

⃝Carry forward the lessons of the IT system failures and enhance ability to respond to crises during times of regular business operations⃝Continually upgrade cybersecurity measures as appropriate for a Global Systemically Important Bank (G-SIB)⃝Further enhance and expand measures for anti-money laundering and combating the financing of terrorism (AML/CFT)⃝Thoroughly strengthen global governance and flexibly control risk

Integrated Report 2023

24

Message from the Group CFO

We are committed tocarrying out our new
medium-term businessplan, to enhance
corporate value andcreate social value.
Takefumi Yonezawa
Senior Executive Officer
Group Chief Financial Officer (Group CFO)

1. Current situation▪Overview of fiscal 2022 results and fiscal 2023
earnings plans
In February 2022, Russia began its invasion of Ukraine. In
March, the Federal Reserve, the central bank of the US,
ended the zero interest rate policy which had been in place
for two years. In this way, the start of fiscal 2022 coincidedwith a string of events that had repercussions for the global
political and economic situation.
Under such an external business environment, weachieved Consolidated Net Business Profits1 of ¥807.1
billion, a year-on-year decrease of ¥46.0 billion. In ourmarkets divisions, we achieved strong performance insales and trading. However, we continued conservative
operations in banking, as interest rates rose significantly inand outside Japan, and chose to realize losses in a portionof our bond portfolio, which improved financial soundness
but also led to a decline in profits. For customer divisions,
our asset management business and capital markets
business struggled. In contrast, loan and deposit revenue
and credit-related fees grew in indirect finance areas suchas corporate lending and deposits and transaction banking.
Overall, customer divisions recorded their highest profits
since the introduction of the in-house company system.
25

Mizuho Financial Group

Profit Attributable to Owners of Parent increased by ¥25.0
billion to ¥555.5 billion. Having achieved our initial target of¥540.0 billion, we increased our annual cash dividends to¥85 per share, marking two consecutive fiscal years ofincreasing dividends.
While we expect the uncertain business environment tocontinue in fiscal 2023, we aim to steadily grow our corebusiness revenue and are setting our target for
Consolidated Net Business Profits as ¥900.0 billion, and forProfit Attributable to Owners of Parent as ¥610.0 billion.
Also, we will look to raise dividends by ¥10 to ¥95 pershare, taking a 40% dividend payout ratio as a guide inconsideration, as per the shareholder return policy.

▪Reflecting on the 5-Year Business Plan andestablishing the new medium-term business planIn our 5-Year Business Plan, which started in fiscal 2019,
we positioned the implementation of forward-looking
structural reforms focused on three interconnected areas(business structure, finance structure, and corporate
foundations) as our basic policy, and we selected Net
Business Profits, ROE, reduction of cross-shareholdings,
and Common Equity Tier 1 (CET1) Capital Ratio as financial
target items. In order to achieve these, we evaluated eachbusiness area from a finance perspective, examining
revenue stability, growth, and effective use of corporate

Executive messages / Features

Mizuho’s value creation process

Business strategies for value creation

resources such as risk-weighted assets and expenses. We
then moved forward with restructuring our businessportfolio through a review of how we allocate corporate
resources.
As a result, we saw improvements to capital efficiency andcost efficiency, as well as the cultivation of business in theAmericas and mezzanine/equity investment as newrevenue sources. Even in a harsh business environment,
we are moving towards establishing a structure thatenables stable earning across the entire business portfolio.
We are making progress towards our financial targets, as
can be seen from the table below, and we have madeimprovements to the balance between financial soundness
and capital efficiency.
FY2023 target

FY2018FY2022(Cont. from 5-YearBusiness Plan)

Consolidated Net
Business Profits¥408.3 billion¥807.1 billion¥900 billion approx.

Consolidated ROE

1.2%

2

Sale of crossshareholdings－

CET1 Capital Ratio3

8.2%

6.6%

7-8% approx.

¥383.8 billion¥450.0 billion

9.5%

Lower end of the
9 – 10% range(Mar 31, 2019 to
Mar 31, 2023)(As of Mar 31, 2023)(Mar 31, 2019 to
Mar 31, 2024)(target level)

We had been making steady progress toward achieving
the goals initially set under the 5-Year Business Plan.
However, over the course of numerous discussions withexecutive officers and employees about how to addresschanges that have occurred in the business environment
over the last four years, we decided to revise our Corporate
Identity—which included creating a new Purpose forMizuho—conclude the 5-Year Business Plan one year
earlier than planned, and establish a new three-year
medium-term business plan.

Governance for value creation

Data section

Appendix

We have set our fiscal 2025 financial targets as
Consolidated ROE of over 8% and Consolidated Net
Business Profits in the range of ¥1 trillion to ¥1.1 trillion.
From the perspective of financial soundness, while keeping
our CET1 Capital Ratio (Basel III finalization fully effective
basis; excluding Net Unrealized Gains (Losses) on Other
Securities) in the lower end of the 9 – 10% range, which isthe necessary level, we will carry out financial
management with a certain amount of flexibility. In thisway, we can ensure a sufficient buffer for capital utilizationsuch as inorganic investment as well as prepare forunexpected impacts brought about by the political andeconomic business environment, which continues tobecome more complicated and less transparent. Further,
we will continue to alleviate the capital burden of stock
price fluctuations by selling ¥300 billion in crossshareholdings over the three-year period.

▪Pursuing effective use of corporate resources
Toward achieving a Consolidated ROE of over 8%, we will
make efforts to improve operational efficiency, which
includes capital efficiency, cost efficiency, and employee
efficiency.
In terms of capital efficiency, we will bring about an
improvement in overall profitability. We will reduce capital
allocation to underperforming areas by setting a
profitability criteria for using risk-weighted assets. Alongwith this, we will reallocate capital to areas where we
expect high profitability, such as high-profit lending(starting with M&A and real estate transactions), startups/
innovative companies, and business in the Americas.
▎Risk-weighted assets
Reduction

Allocation
Global CIB
business

2. Financial strategy in the new medium-term business plan
The new medium-term business plan, which wasformulated with the Purpose as its starting point, not only
takes into account financial capital, but also non-financial
capital such as human capital and social/natural capital. Bytaking the definition of capital broadly and utilizing said
capital to actively provide services to our customers, weare pursuing enhancement of corporate value and creationof social value. We are also aiming to create a cycle
whereby our pursuit of these goals brings various benefits
for our stakeholders.

Residential
mortgages

Other

Crossshareholdings
Underperforming
assetsCorporatebusiness
in JapanGlobal CIB
business

Mar 31, 2023

Asset recycling
Corporatebusiness
in JapanMar 31, 2026

Integrated Report 2023

26

Message from the Group CFO

For cost efficiency, we will proactively allocate spending toensuring stable operations—responding to global financial
regulations, strengthening cybersecurity, and similar—andto developing strategic areas where we see potential for
digitalization and profit increase. For existing expenditure
items, we will conduct meticulous inspections and reviews,
sticking to an expense ratio at the lower end of the 60%– 70% range.
▎Expense

79%

65%

FY2018Control
expense ratio(approx. 60%)

FY2022

FY2025
forecast

With the rate of population decline accelerating and thelabor supply becoming increasingly constrained, our talentis our most valuable corporate resource. For our laborintensive retail business, we will work to improve employee
efficiency by advancing digitalization; enhance humancapital through education, training, and other investment in
HR; and improve productivity.
▎Personnel

Optimization

Specifically, we have positioned asset formation andmanagement, our corporate business in Japan, and our
global CIB business as key business areas. We expect tosee these three areas produce growth in Net BusinessProfits of approximately ¥170.0 billion. In the area of asset
formation and management, taking on board the Japanese
government’s plans for doubling asset-based income, wewill strengthen our Nippon Individual Savings Accounts(NISA)-related initiatives and continually expand our assets
under management. In the area of our corporate businessin Japan, we will focus on responding to demand for ourclients’ investments in transition strategies and othersustainability-related initiatives and on supporting the
growth of middle-market firms. In the area of our global CIB
business, we will further expand our US capital markets
business, and we will roll out our US operational foundationand operational management framework in EMEA andAsia.
In addition, we will move toward a profit structure that isresilient to changes in the external business environment.
This includes controlling interest rate risk throughmanaging an appropriate position in our banking
operations.

▪Improving the price-to-book ratio
Our current price-to-book ratio (P/B ratio) is approximately
0.6, our market cap ratio for the amount of equity capital on
the balance sheet is just over half, and it is being said that
our capital will likely go down in the future. We, executive
management, duly recognize the harsh feedback from thestock market, and we are committed to making
improvements.

P/B ratio ＝Growthareas

Approx.
0.6

ROE

6.1%4

Cost of capital − Expected rate of growth
Around 7%5

Around -4%

Cost of capital (broadly defined)
Approx. 11%
Mar 31, 2023

Mar 31, 2026
forecast▪Realizing steady growth with a resilientbusiness structure
In order to achieve Consolidated Net Business Profits of ¥1
trillion to ¥1.1 trillion, we will invest corporate resources inareas that drive growth.

27

Mizuho Financial Group

The P/B ratio is determined by ROE, cost of capital, andexpected growth rate. We will make steady progress toachieve the new medium-term business plan to reach an
ROE of over 8% in three years’ time. Even after this period,
we will continue to strive for constant improvement. We
will also make efforts to reduce the cost of capital and toExecutive messages / Features

Mizuho’s value creation process

Generating
expectation
for growth

Fundamentals

Improving capitalefficiencyMacrofactors

Eliminate
discount

Business strategies for value creation

Governance for value creation

Data section

Appendix●Improve asset profitability

Reallocate resources from underperforming assets to highly profitable assets●Control on expense ratio

Employ disciplined cost management and improve productivity●Achieve steady profit growth

Aim for sustained growth in profit from core business and expand
non-interest income
Balance of growth investment, investment in intangible assets,
and enhancement of shareholder returns●Adequate balance in using capital●Stabilize profit from core businesses

Global CIB business model in which primary and secondary businesscomplement each other.
Diversify revenue sources, reduce one-time gains/losses,
and make cross-shareholding reductions●Improve financial soundness

Optimize the management of the CET1 Capital Ratio and reduce cost of capital●Contribute to the growth ofJapan’s economy

Increase household financial assets and strengthen the competitiveness ofJapanese companies through carrying out Mizuho’s Purpose●Capture growth opportunities
outside of Japan

improve the expected rate of growth.
We will aim to reduce the cost of capital by minimizing
revenue fluctuations and practicing balanced capitalmanagement.
Further, the current negative growth expectations are theoutcome of combined Mizuho-specific factors andmacroeconomic factors in Japan. However, the profit
growth and business expansion that will come out of oursteady implementation of the new medium-term businessplan will resolve the Mizuho-specific factors. Throughcarrying out Mizuho’s Purpose, I believe we will put theJapanese economy on a growth trajectory, and thus
address the negative macroeconomic factors as well.

covering not only business strategies and capitalmanagement policy, but also the new Corporate Identity
and non-financial areas such as the environment andhuman capital.

FY2022 meetings with institutional investors: 520(includes 190 investors outside of Japan)⃝By executive officers: 190 (includes 50 investors outside of Japan)⃝By IR Dept.: 330 (includes 140 investors outside of Japan)

Key briefings⃝Presentation for individual investors (Jan 2023)⃝IR Select (Feb 2023, May 2023): Briefing from the Group CSuO, Group CCuO/
Group CPO,6 and Chairperson of the Board of Directors⃝IR Day (Jun 2023): Briefing on business strategy from in-house company
heads⃝Outside director session (Jun 2023)

3. Stakeholder communication
My engagement in dialogue with shareholders, investors,
and other stakeholders has brought me a variety of new
insights. We will take these as suggestions to improve ourbusiness, and will further raise the quality of dialogue with
our stakeholders by disclosing Mizuho’s approach andinitiatives. I believe that it is essential to make these kindsof processes into a consistent cycle.
From fiscal 2023, as the Group CFO, I will work towardfurther strengthening dialogue and enhancing ourdisclosures. I would like to have open discussions with ourdiverse stakeholders on a number of topics and implement
feedback into various initiatives. The topics could vary,

1. Includes Net Gains (Losses) related to ETFs (Mizuho Bank and Mizuho Trust & Banking) and Net Gains (Losses) on
Operating Investment Securities (Mizuho Securities consolidated).
2. Calculated by dividing Net Income by Total Shareholders’ Equity + Total Accumulated Other Comprehensive Income(excluding Net Unrealized Gains (Losses) on Other Securities).
3. Basel III finalization fully effective basis. Excluding Net Unrealized Gains (Losses) on Other Securities.
4. FY2022 ROE (Net Income on Equity Capital). Incl. Net Unrealized Gains (Losses) on Other Securities.
5. Estimated based on CAPM.
6. Chief Culture Officer / Chief People Officer

Integrated Report 2023

28

Discussion

Corporate Identity and growth strategy

Masahiro Kihara

Izumi Kobayashi

Member of the Board of Directors
President & Group CEO

Outside Director(Chairperson of the Board of Directors)

Group CEO Masahiro Kihara and Chairperson of the Board of Directors Izumi Kobayashi sat down to talk about the backgroundof the discussions on the Corporate Identity and Mizuho’s growth strategy, as well as the role of the Group CEO going forward.

Mizuho’s raison d’être in the midst of multiple paradigm shifts
Kihara One of the paradigm shifts we are experiencing is sustainability.
The degree of change associated with sustainability is enough to drive awhole new industry. Taking hydrogen as an example, we need to buildhydrogen-related supply chains outside of Japan that will spanmanufacturing and transportation, and we must also develop a domestic
distribution network in Japan. This won’t be possible if we simply carry on
as we have so far. Another paradigm shift is the new globalism. Economic
security has become the main perspective in the rebuilding of supply
chains. This represents a divergence from Japan’s traditional industrial
structure, whereby production is handled in countries with low production
costs, followed by importation to Japan, and it provides one more example
of a transition away from how things were in the past. The whole world istrying to achieve things that cannot be done alone, and making that
happen takes a lot of coordination. The need to deliberate these changes
and decide on Mizuho’s next moves was the starting point forreconsidering Mizuho’s raison d’être.
Kobayashi I, too, feel it is necessary to review the role of financial
institutions. The key words here are “digital transformation” and“sustainability”. When I say “digital transformation”, I’m not simply
referring to online banking. I mean digital transformation on a much larger
scale that encompasses the group as a whole, and even reaches tooutside the group. Mizuho already has a comprehensive financial platform.
What should Mizuho do next? What will Mizuho take into the future? Wemust remain tightly focused on these questions. As for sustainability, likeyou said, we are facing a paradigm shift big enough to reconfigure theindustrial structure of Japan. That sort of industry insight is one ofMizuho’s strengths. Now is the time for the entire company to discuss

29

Mizuho Financial Group

what our purpose as an organization is, and what commitments we will
make to society.
Kihara Actually, the CEO of one of our clients recently told me that
financial institutions are needed now more than ever. He said thateven large global conglomerates with a wide range of business areas
recognize the importance of the roles that financial institutions fulfill as“joining forces” and “conduits”.
Kobayashi The uniqueness and value of financial institutions isexactly that—their ability to connect. We connect diverse industries
with one another, and connect companies of different scales. When I
attend meetings and conferences outside of Japan, one topic that often
comes up is what roles should be fulfilled by humans rather than by AI.
There are times when AI cannot provide a full answer and times when it ishard for AI to come up with a solution from looking at figures and surfacelevel information alone. This is where humans come through: in theiraptitude for thinking and the way humans connect different things. Goingforward, I believe that the ability to attract talent with such ambitionand skill will be the key that enables a company to distinguishitself. Progress will level out the difference between various
forms of technology, but it won’t level out the individualities
between people. Money is at the heart of finance, but we must find new
added value moving forward.

The role of the Group CEO and corporate culture
Kobayashi I was in a top executive position at the Multilateral
Investment Guarantee Agency (MIGA) after the 2008 financial crisis. We

Executive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Data section

Appendix

were receiving more calls for support and investment from around theworld, and we were faced with a dilemma: Private companies expanding
into emerging markets would give rise to economic development, butwould the positives of such economic development outweigh thenegatives? During that time, we lost our direction as an organization. In
response, instead of having a top-down decision on our course ofaction, we talked with one another about what we thought MIGA’s
raison d’être was, and we managed to find an answer and a
direction. Doing this revealed to us what we should be doing in our
everyday work, and what we should be leaving behind. We weren’t
following any sort of manual—rather, we had become able to
make judgement calls based on our understanding of the aims of
our work.
Kihara Right after the IT system failures—before I had been appointed
as Group CEO, when I was still the Head of the Global Products Unit—I
made time to speak to my colleagues every day. Back then, I felt that we
had all lost our confidence and direction. Together, we had to identify
what new direction we should head in, and we had to share the same
direction with one another. I believe these kinds of reflective experiences
are what lead corporate culture to develop over time.
Kobayashi There are so many aspects of corporate culture that can’t besummed up in just that one term. It impacts whether or not employees feelproud of their company, whether or not they like their company—that’s
why corporate culture is extremely important.
Kihara When I visit branch offices, I am often asked how I would define
a positive corporate culture. I answer that it’s an environment where each
person can express their opinions and where those opinions are welcomedby their colleagues. Even so, I feel like the concept is hard to wrap one’s
head around.
Kobayashi Really, a sign of positive corporate culture at Mizuho
would have been if those employees had been able to share theirown thoughts on the kind of corporate culture they would like at
Mizuho, instead of having to ask you. The role of CEO is not to leadthe organization from a top-down position, but to unite us all in asingle direction. When everyone is in alignment and moving in thesame direction, there is no need for the CEO to step in. Indeed, a
CEO needs perseverance. Even if a CEO feels like they have a solution, it isoften necessary for them to hold back and trust the momentum.

Kihara I do actually recall being told by a more experienced colleague tolisten as much as possible and avoid assuming that I’m right. I think I need
to work on creating more opportunities for me to listen. I’m also making
a point of ensuring my responses communicate that I have taken
what I’ve heard on board. I still remember the disappointment I felt
when I was young and received no response from the people above me,even after I had gone to the effort of sharing my thoughts.
Kobayashi It is only after hearing a range of views that we can begin toconsider issues in all of their dimensions and become able to make thebest decisions for the organization. The crux of the matter is whether or
not people will be forthcoming with their differing perspectives. As wellas making time to listen, I believe executive management should
create an open atmosphere and make comments that encourage
people to express their thoughts.
Kihara On that point, I think that process reforms, human capital
strategy, and corporate culture are interconnected. Process reforms areopportunities to trim off excess operations, which allows our people theleeway to look at things more broadly and communicate theirobservations. Complementing this, our human capital strategy provides ameans of recognizing and rewarding people’s efforts to contribute their
viewpoints and take on challenges in this way. I want to make sure we areable to hear lots of constructive opinions.
Kobayashi Middle management also plays an important role inestablishing the necessary momentum. They need to encourage thoseworking under them and fully evaluate them on how much they havevolunteered their opinions and proactively been involved in initiatives. In
this way, employees will gain confidence that they are progressing in theright direction, which will lead to further positive outcomes. When you
visited frontline offices, did you sense that our efforts to date areproducing results? For example, were there any changes in the mindsetsof the employees you met?
Kihara I felt that they were really starting to share forward-looking
opinions. We are still in the initial stages, but I will look to promote thisphilosophy further through my messages while also listening to andencouraging everyone. Thank you for your time today.

Integrated Report 2023

30

Feature

Corporate culture transformation initiatives

In April 2022, Mizuho established a number of employee-led working groups as a mechanism for reflecting employee
ideas and frontline perspectives in executive decision-making. Our corporate culture-focused executive officer role andour structure for promoting corporate culture came about due to recommendations from employees who had cometogether of their own volition to participate in these cross-entity working groups.
Under our dedication to serving customers and society, we are continuing initiatives to transform our corporate culture,putting in place a work environment that encourages employees to speak and act freely and creating an organization
where everyone can take initiative on their own and engage in constructive communication.
Fiscal 2022 employee-led working group activities
150 group employees applied to participate as members of employee-led working groups.
Over the course of six months, working group members engaged executive management in discussions on four themes: 1) Values / Action principles, 2)
Communication transformation, 3) Business style transformation, and 4) Support in proactive actions.
A page showcasing the working groups’ activities was set up on the Mizuho group’s employee intranet, and surveys were held to gain feedback from
employees.

Employee-led working groups

Executive
management
Group CEO,CEOs of group companies,
Group CSO,
and Group CHRO

Mar 2022

Apr

Monthly meetings

May

Application
periodValues / Action principles

Communication transformation

48 people

42 people

Business style transformation

Support in proactive actions

31 people

29 people

Jun

Jul

Aug

Discussions

Sep

Monthly meetings withexecutive management

Oct 2022 onwards

Related departments examine
and implement measures

Operation of employee-led working groups
Discussions withexecutive management commenceGroupemployees

Executive Management Committee meeting(employee recommendations)

Employee recommendations to the Executive Management Committee
Following the suggestion of the Group CEO, an Executive Management Committee
meeting was held in September 2022, attended by executive officers of Mizuho
Financial Group and by members of the employee-led working groups. Working groupmembers made recommendations to executive officers during this meeting.
Numerous recommendations were made, including having employees and executive
officers come together to revise the Corporate Identity; creating both an executive
officer role and a department dedicated to corporate culture, in order to ensure that
corporate culture transformation initiatives do not fade with time; and introducing areverse mentoring system whereby executive officers would be mentored by earlycareer employees.
Later, in December 2022, the executive officer role and project team dedicated tocorporate culture were established, and in March 2023 the revised Corporate Identity
was formally adopted. The Group CEO of Mizuho Financial Group and the President &CEO of Mizuho Bank have both been participating in reverse mentoring as well.

31

Mizuho Financial Group

Executive Management Committee meeting held on
September 29, 2022

Executive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Data section

Appendix

Reflections of employee-led working group members

Every employee is responsible for transforming Mizuho
I realized that you reap what you sow: Mizuho won’t change as long as there are many people like myself acting as bystanders,
wondering whether we should just concentrate on the work in front of us. This realization led me to apply to participate inworking group discussions on the theme of “Support in proactive action”.
Having been appointed as activity leader, I faced challenges in balancing my working group duties with my regular work
responsibilities. However, I managed to gain experience that I wouldn’t get in my everyday job, and in doing so was able toexpand my perspective.

Tae Tamura
Industry Research Department
Mizuho Bank

The recommendations we brought up in September are slowly being put into practice, and Mizuho is starting to change.
However, change at Mizuho is not solely the concern of working group members; it requires many employees working together
to push it forward. There is still a way to go in terms of shifting employee awareness in this regard.
We recommended to executive management that Mizuho take a middle management-centric approach to energizing employees
and revitalizing the organization. I myself started a middle-management role in fiscal 2023, so I am more committed than everto supporting proactive action in the workplace.

Anywhere you go, there are chances to challenge yourself. Act on your initiative and you can make any change.
I joined Mizuho in 2008 as a temporary employee. Inspired by the warmth of the colleagues who supported me in my work, I
decided to become a permanent employee so that I could better support customers in achieving their goals. In February 2022, I
learned about the opportunity to become a member of an employee-led working group through communications that had been
sent to Mizuho group company subsidiaries. I wondered what impact my actions might have at such a working group, andapplied to participate in working group discussions on “Values / Action principles”.
I was nervous at first, worrying that I may be out of place. But when I listened to the other members, I realized that many ofthem shared the same sentiment as me: We want to change, and we want to change Mizuho. I didn’t feel any hierarchal
barriers between myself and the rest of the working group.
I really feel that corporate culture transformation—change that will lead to economic growth through increasing employee
engagement and revitalizing the organization—is already underway at Mizuho. I am committed to continuing to grow as aperson, believing in the importance of respecting and leveraging diversity, and eagerly taking on challenges.

Yoko Sakai
Helpdesk Department
Mizuho EB Service

Closing the distance between executive officers and employees with reverse mentoring
I took part in working group discussions on the theme of “Business style transformation”, and suggested that reverse mentoring
be introduced for executive officers. From November 2022, I began participating in reverse mentoring with Group CEO Kihara.
During these mentoring sessions, I share my unique insights with the Group CEO. These insights include my work experience
both at Mizuho and outside the company, and the thoughts and ideas I’ve had while working at Mizuho. For example, I share myideas on data analysis, which is something I handle as part of my everyday job. I’ve also spoken about the latest trends inquantum technology, which was my field of research when I was a graduate student.

Masahiro Tadokoro
Corporate Advisory Department
Mizuho-DL Financial Technology

I think that holding discussions with people like me—early-career employees in their twenties—is a novel experience for
executive officers, and that it must be advancing communication beyond age groups and seniority hierarchies. The Group CEO
actually started holding live sessions, in which he speaks directly with employees, after a conversation I had with him where I
explained that speaking with him in person had given me a completely different impression of him compared to when I was justwatching his recorded messages.
I would like to make Mizuho an organization where, no matter the place, communication can flow freely without being
hampered by seniority hierarchies.

Integrated Report 2023

32

Discussion

Corporate culture transformation

Masami Yamamoto

Natsumi Akita

Takashi Tsukioka

Outside Director

Senior Executive Officer Group Chief Culture Officer(Group CCuO) Group Chief People Officer (Group CPO)

Outside Director

Natsumi Akita (Group CCuO and Group CPO) and outside directors Takashi Tsukioka and Masami Yamamoto met to talk about
corporate culture transformation at Mizuho, the discussions and initiatives to date, and the challenges going forward.

Impressions of Mizuho
Yamamoto Natsumi, you joined Mizuho in May 2022. At that time, what
were your impressions of Mizuho’s corporate culture and employee
sentiment, and where did you see room for improvement?
Akita Before I joined, I assumed that Mizuho was an organization
where it was hard to instigate change. That was the impression I had

from media coverage of the organization. Actually, even after I joined,
there were times when I could sense that people at Mizuho
tended to confine their interpersonal relationships to within thecompany, and it seemed like quite a few of them believed that
the Mizuho way of doing things was simply the universal
standard. Granted, these issues are not unique to Mizuho; the same
could be said of any large Japanese corporation. However, after
speaking one-on-one with the people here, I came to understand thatmany of them are passionate about contributing to improving thecompany. I could see that they were interested in gaining insight into
the varied experiences and perspectives of people like me, who haveworked outside the company.

Outside director perspectives on issues and challenges
Akita How do you two, as outside directors, feel about the corporate
culture at Mizuho? Since last year we have been discussing the revisionof Mizuho’s Corporate Identity. I would be interested to hear yourthoughts on any challenges you have identified in that regard, also.
Tsukioka I became an outside director right in the middle of theturmoil caused by the IT system failures. Shortly after my appointment,

33

Mizuho Financial GroupExecutive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Data section

Appendix

I began to perceive that Mizuho was not functioning well due toits organizational approach: the holding company would
consider and create strategy, and the group companies would
simply carry out those predetermined strategies. Further, when I
considered the way anxiety was spreading among employees, I thoughtthat it was the right time—a chance, even—to go back to basics,
precisely because we had reached a crisis point. In my experience, foremployees to come together and move in the same direction, it
is critical for them to learn about the origins and history of thecompany. There is a painting by Paul Gauguin titled “Where Do We
Come From? What Are We? Where Are We Going?” These are the veryquestions employees and executive management should consider
together. I felt that Mizuho needed to do that.
Yamamoto Adding onto that, I believe that for Mizuho to keep
growing, we need human capital that can help us to break outof our shell and embrace innovation. As part of the process ofrevising the Corporate Identity, we decided on Mizuho’s Purpose:“Proactively innovate together with our clients for a prosperous andsustainable future”. Through setting this Purpose, we were able toclearly define Mizuho’s role and direction going forward. If we canbuild an environment where each employee can share a
multitude of ideas and act on those ideas, I think we’ll be on theright track.
Tsukioka I agree. Recently, employee-led working groups formed andshared proposals for executive management. One of the great successesof these working groups has been to provide employees with anopportunity to proactively share their thoughts and views with thecompany. Also, regarding the revisions to the Corporate Identity, wewere able to improve executive officer–employee communication by
ensuring that executive management coming together with employees
was a central part of the process.

Initiatives by the Group CPO in fiscal 2022
Yamamoto What did you give particular attention to when you
undertook initiatives in fiscal 2022?
Akita Since joining Mizuho and becoming Group CPO in May 2022,
the theme I have placed the most importance on is developing
connections. Take, for example, the organizational development
initiative that we started last year. Until now, we have mainly prioritized
the growth of individual employees, but through this initiative we began
to work on interpersonal relationships as well through a focus oncommunication and teamwork. By creating connections between teams
and the organization, we are aiming for improved performance acrossthe organization. These kinds of initiatives have become even more
important post-COVID. With regard to developing future female leaders,
we introduced a mentoring program where executive officers act as
mentors for female leadership candidates. We have also been using
training sessions to create lateral connections between women working
in management positions. Further, outside of our support for current
employees, we are also putting emphasis on co-creation of connections
between Mizuho and Mizuho alumni, and we are strengthening ourcooperation with our Mizuho alumni network of approximately 1,000
members.
Yamamoto In order for us, as an organization, to break out of ourshell, we need a working environment where people sharediverse opinions. One issue especially pertinent to this is theadvancement of women in the workplace, which is a topic of serious
discussion at the Board of Directors. Right now, if you look at theexecutive officer makeup of the holding company, there are still only
two positions filled by women—your position being one of them. In
what ways are you looking to promote the advancement of women in
the workplace?
Akita Women have a range of concerns, which relate to factors suchas job role, office environment, and family circumstances. First things
first, we are working hard to provide support that is truly helpful inalleviating these various concerns. Overall, as a company, I think we

Integrated Report 2023

34

Discussion

Corporate culture transformation

should be aware of the importance of listening. This is especially true
for traditional Japanese companies, which tend to have a very topdown chain of command. Many different kinds of people work at
Mizuho but, unfortunately, we have not been making enoughtime to really hear what they have to say.
Yamamoto I feel that, at Mizuho, communication still tends to revolvearound male employees. One outside director who has observed offices
outside Japan said that women are very active in those workplaces andthat they actively participate in extremely energetic discussions. In
order for Mizuho to move in a positive direction, we need tocreate a working environment where it is the norm for anyone,
including women, to be able to freely express their ideas andopinions.
Tsukioka The promotion of women’s advancement in the workplace is
an issue at many Japanese companies. I would definitely like to seeyou, as a female executive officer who has come to Mizuho afterworking elsewhere, continue demonstrating your great leadership. Thisis certain to have an extremely large impact on Mizuho. We will do all
we can to support you as outside directors.

“How to instill ownership over the
Corporate Identity in employees andinspire them to move forward with apositive mindset?
Employee participation is key”. (Akita)

Efforts to achieve corporate culture transformation, andhow these efforts will be sustained
Going forward, it will be crucial to track how firmly
the Corporate Identity becomes established among employees.
Tsukioka

When I learned that Mizuho was creating a Group CCuO role and a
Corporate Culture Office in order to promote the Corporate Identity, I
was able to see Group CEO Kihara’s commitment. As Group CCuO, what
initiatives will you prioritize going forward?
Akita The other members of the Corporate Culture Office and I
are making every effort to instill in our colleagues a sense ofownership over the Corporate Identity and make sure they canmove forward with a positive mindset. Of course, their participation
is key. Progressing such a variety of initiatives requires that employees
become proactively involved from the planning stage so that we canshape the initiatives together. Regardless of whether they will work out
well or not, we will steadily try out ideas put forward by our colleagues.
If, after trying it out, an idea doesn’t work, we won’t develop it any
further. But if the idea has potential, we will go through the process ofdeveloping it to make it even better. In addition to continually carryingout employee-led initiatives in this way, it is also important for us todeepen awareness about these kinds of efforts. As such, we will
enhance the sharing of related information both in and outside Japan.

“We need to create a working
environment where it is the norm foranyone to be able to freely express
their ideas and opinions”. (Yamamoto)

35

Mizuho Financial Group

Yamamoto A very long road lies ahead when it comes tocompleting corporate culture transformation initiatives. For thisreason, it is necessary to devise ways to keep it positioned as a
key management issue. What are your thoughts on this matter?
Akita For our new medium-term business plan KPIs, we set
quantitative targets for the engagement score and inclusionExecutive messages / Features

Mizuho’s value creation process

Business strategies for value creation

score based on our staff surveys, and we communicated thismanagement commitment both inside and outside Mizuho.
Yamamoto We discussed this at the Compensation Committee,
too. Taking on board Group CEO Kihara’s clear sentiments on
the matter, we have incorporated these metrics into the
executive compensation system. We know that these arechallenging targets, so we are asking all executive officers todemonstrate strong leadership to ensure that they can be met.
Tsukioka The staff survey results are just one indicator, and can beaffected by situational circumstances during the period when the survey
is held, which should be kept in mind. It may be helpful to also look atincreasing employee contact points and listening to opinions which may
go unvoiced in surveys.

Signs of change
There is a saying in Japanese which roughly translates as“When you’re at a dead end, something has to give. Once it gives, you’ll
be able to pass”. As we discussed at the Board of Directors meetings,
my perspective has been that if Mizuho doesn’t change now, it won’t beable to go on. However I do actually feel that, bit by bit, various things
are beginning to change in a positive direction. What about you,
Natsumi?
Tsukioka

Akita Yes, I’m also seeing gradual change. For example, in Japan,
Group CEO Kihara regularly holds sessions to talk directly with
employees. The conversation flows easily during these sessions. I
understand that other companies are doing similar things, but I suspect
that, in the case of other companies, the employees are likely briefed
about the course of discussion ahead of time. It is the lack of priorpreparation and the fact that participants really are speaking from theheart that makes Mizuho’s sessions so outstanding. This is just one
example, but we place great importance on this transition
towards opening up more chances for communication, and at
more frequent intervals. When it comes down to it, employees
are the starting point of change. It is essential for us to listen
closely, grasp what it is that lights a fire in their hearts, andtake action based on that knowledge.

Governance for value creation

Data section

Appendix

officers, from CEOs of group companies to geographical area heads,
have been proactively using the internal company social media
networks and other communication tools. Internal communication has
become livelier. I am excited for this kind of communication between
executive officers and employees to lead to an even more vibrantworking environment.
Tsukioka Fundamentally, all corporations exist for a common reason:
to contribute to society and the countries where they do business. If
communications from executive management emphasize thechasing of short-term profit without providing a clear sense of
the corporation’s overarching goal, employees won’t be able toreach customers, and the corporation won’t be able to achievesustainable growth as a company. To make sure that doesn’t
happen, Mizuho needs to use the Corporate Identity, and the
Purpose in particular, to properly communicate our overarchinggoal to employees.
Yamamoto I agree. We, outside directors, would also like tohave robust discussions with executive management at board
meetings and in everyday communications to make sure that
we don't lose sight of the overarching goal, and to ensure that
executive management share the same views on this point.
Akita Thank you. I felt a huge amount of confidence when I visited abranch recently and heard my colleagues there saying that Mizuho isalready changing. Going forward, I will do all I can to increase thenumber of people who share this sentiment. Thank you for your time
today.

“It is important to use the Corporate
Identity, and the Purpose in particular, toproperly communicate Mizuho’s
overarching goal to employees”. (Tsukioka)

Yamamoto When we do that, we should consider not only the holding
company, but also give close attention to the group as a whole,including group companies. By looking at the circumstances of theindividual group companies, we will be able to move forward initiatives
that are appropriate in each instance. Mizuho changing as a wholewill create an even stronger group, and will be the source of
future growth. I want all executive officers and employees totake that in.
Akita

We will, of course, make efforts as a unified group. Executive

Integrated Report 2023

36

Messages from the CEOs of group companies
Mizuho Bank

Becoming an organization that takes on challenges and leads the way
While maintaining stable business operations, we are proactively returning from a defensive to an offensive
stance in our overall business strategy. We are determined to practice this stance throughout our business infiscal 2023.
Accomplishing this will require drawing upon one of our differentiating features, our overwhelmingly large
customer base in Japan, and restoring it as a strength by raising the quality of our customer touchpoints. Each ofour divisions is moving forward initiatives in line with the particular characteristics of its business area.
Underlying all of these initiatives is our fundamental approach of focusing on the customer.
As the core bank of the Mizuho group, we will be a hub for intragroup collaboration, connecting Mizuho’s
strengths—namely, our group-wide business areas and global network—to respond to the evolving anddiversifying needs of our customers.
Stable business operations are essential to implementing our strategy. In addition to stably operating our IT
systems, we are also relentlessly striving to eliminate waste and streamline operations at each of our locations.
“Be a catalyst for change”. These words encapsulate the new Values we have set. All of us will work closelywith our customers, stand at the forefront of our era’s changes, and lead our customers and Mizuho to change.
We will steadily entrust employees with greater responsibilities towards fulfilling this role. Together, we will
become a Mizuho where everyone can proactively develop ideas and bring about change.

Masahiko Kato

Mizuho Trust & Banking

President & CEO

Mizuho Bank

Joining minds and creating a prosperous future

At Mizuho Trust & Banking, we are combining our sophisticated trust functions with the functions of othercompanies across the Mizuho group to provide our clients with wide-ranging value, drive sustainable growth,and create a prosperous future. Specifically, we are undertaking the following three initiatives.
Extend the competitive advantages of our expertise: We will not only respond to our clients’ needs but also
leverage our advanced expertise and foresight to identify future issues for our clients and society and thenpropose solutions in a compelling narrative format.
Deepen coordination: By fully utilizing the client base and resources of the Mizuho group, we will further bothhorizontal coordination, providing group functions in concert, and vertical coordination, expanding business
continuously. This will allow us to create a diverse added-value chain and offer it to a larger number of clients.
Enhance our corporate foundations: We will continue with our initiatives to transform our corporate culture andimprove our expertise, with the aim of becoming a development-centered workplace where employees feel
supported and respected and are always striving to reach a higher standard.
2022 marked 100 years since the introduction of Japan’s trust laws. Looking towards the next 100 years, we will
apply our innovative ideas to provide unique value only we can offer and to serve as a reliable, collaborative
partner, exercising a high level of expertise and creativity to benefit all of our stakeholders.

Kei Umeda

37

Mizuho Financial Group

President & CEO

Mizuho Trust & Banking

Executive messages / Features

Mizuho’s value creation process

Mizuho Securities

Business strategies for value creation

Governance for value creation

Data section

Appendix

Putting our clients first and growing together with themMizuho Securities will always endeavor to transform ourselves and co-create value together with our customers.
We will listen to our customers’ needs and contribute to resolving the increasingly diverse issues faced by ourcustomers and society.
We will work together with our customers towards doubling asset-based income, while tailoring our approach tomeet their needs. This will contribute to creating a better future by more effectively enabling individuals tosecure sound household finances and pass on their assets to the next generation.
We will also deepen our engagement with corporate clients, who are facing multiple issues in relation tosustainability, digital transformation, and the global supply chain.
We will work closely with these clients to design and provide solutions, and thus co-create value. To do so, wewill leverage our wide-ranging client base and investor network across the group and worldwide.
Recently, the outlook for global markets has become increasingly uncertain due to geopolitical risks, inflation,and the US banking crisis. While remaining alert to both signs of change and risks, we will expand as a clientoriented professional organization by overcoming these changing times together with our clients.
For fiscal 2023, we will drive our business growth by focusing on three areas: continuing our thoroughcommitment to customer-focused management; differentiating ourselves and securing competitive advantages
in a way that brings out Mizuho’s strengths; and identifying growth opportunities that can move the entire groupforward. We will also make solid efforts to respect the perspective of frontline employees and other staff,
conduct operations reliably and accurately, and streamline operations.
By proactively innovating together with our customers and other stakeholders for a prosperous and sustainable
future, we will become their most trusted and reliable partner.

President & CEO

Mizuho Securities

Mizuho Research &Technologies

Yoshiro Hamamoto

Combining expertise and technical skills and working
with customers and society to create a better future

Mizuho Research & Technologies brings together research, consulting, and IT / digital functions in an
organization made up of specialists. Fiscal 2023 marks the third year since our founding and the first year of the
new medium-term business plan. As part of this plan, we will pursue initiatives along the following three tracks.
The first is elevating and combining our strengths. The relevant focus areas we have selected in this regard are
strategy, sustainability transformation, and digital. We have already developed significant insights in the fields ofsustainability and sustainability transitions, and we will utilize them to further extend our positive contributions tothe creation of new value beyond finance. Also, staying in step with the rapid progress of technology—
particularly AI—we will further enhance our initiatives for the overall digitalization of society and for solutions tosocial issues. In terms of reinforcing our business, we will rebalance personnel assignments and collaborate
with partners in line with our focus areas. Doing so will enable us to move forward on building a value cocreation framework, rooted in our diverse business portfolio and in the synergies between the respective
strengths of Mizuho and our partners.
The second is operational reforms. As one of the entities that facilitates the stable operation of Mizuho’s IT
systems, we will reform IT operations and optimize IT system structure, with an eye towards medium- to longterm changes in the business environment, among other factors. In addition, we will be diligent in improving
productivity and will advance continual operational improvements, operational process reforms, and IT
infrastructure reforms in each business domain.
The third is restructuring and strengthening the corporate foundations that support the above. Mizuho as a wholeis transforming corporate culture to align with the new Corporate Identity and transitioning to a new humanresources strategy. For our part, at Mizuho Research & Technologies we are promoting more flexible work
styles, which will reach a turning point with a large-scale reorganization of our offices in 2025. We will move
forward the creation of a solid base for making these improvements to our corporate foundations.

President & CEO

Mizuho Research & Technologies

Masatoshi Yoshihara

Integrated Report 2023

38

Measures for stable business operations
Where we standIn the wake of the series of IT system failures, we embarked on various types of initiatives to improve our operations. We are steadily continuing these
initiatives, checking that they are effective, and ensuring that they become further established in the workplace. We will continue with our initiatives tomaintain effectiveness.

End of FY2022

Formation andimplementation of
initiatives

MaintenanceContinuation
Establishment in the workplace⃝As well as consistently preventing large-scale system failures, we have also firmly established timely initial responses and other initiatives for responding to system failures.
⃝Moving forward, we will continue to persistently carry forward the lessons from the IT system failures, increase organizational knowledge on each initiative, and balance
effectiveness and efficiency. In doing so, we will continue our robust initiatives.

Preventing IT system failures
At Mizuho, having reflected on the series of IT system failures, we have been making even greater efforts toensure stable operations. These efforts include conducting inspections aimed at preventing further system failuresand enhancing our ability to respond in the event of a system failure.
The series of initiatives has been carried out as planned, and the initiatives are already solidly demonstrating theireffectiveness in contributing to stable business operations. We will continue to implement such initiatives so that
customers can use our services with peace of mind.
In order for us to maintain stable systems and operational frameworks far into the future, we need to upgrade andoptimize the development, application, and maintenance of these systems and frameworks by making use of
external services and new technology, based on factors such as changes in the business environment,
technological trends, and changes in the level of system usage.
Mizuho, as a whole, will continually conduct qualitative reforms and raise the caliber of our operations from a 5- and10-year perspective. We will achieve this through IT reform initiatives which will transform and optimize operations
in need of review, in response to factors such as changes in the business environment. These qualitative reforms
and other efforts will allow us to meet changing customer needs and provide safe and highly convenient services.

System maintenanceActions taken / Areas for improvement
System failures1

Hardwarerelated

Softwarerelated

Performancerelated

Current status2

Actions taken / Areas for improvement

Current status2

Understanding
the frontline
situation /Personnel
management

Firmly establish personnel
management
Established the improvement
cycle by listening toemployees and reflecting
their real opinions
Interviews with 1,500 employees
60 dialogue sessions between executive
management and frontline employees

Improvements in employee
awareness- Improvement in frontline
perception of middle
management

No. of failures: 0(Feb 28, 2021 – Mar 31, 2022:
2 failures)

Resource
allocation

Securing necessary
management resources,
such as IT investments
and expenses

No. of failures: 1(Feb 28, 2021 – Mar 31, 2022:
2 failures)

Riskmanagement

Enhancement of system
failure analysis

No. of failures: 2(Feb 28, 2021 – Mar 31, 2022:
11 failures)

Complete inspections
380 additional preventive replacements3
Completed for all 95 systems4

No. of failures: 1(Feb 28, 2021 – Mar 31, 2022:
5 failures)

Checked for knock-on effects
among systems

System resourcesenhancement andmonitoring improvement

1. System failures with significant impact (only impact in Japan, excluding externally caused system failures)
2. Actual results from Apr 2022 to Mar 2023
3. Preventive replacement of disks and other parts, based on signs detected during inspection
4. Inspection for finding problems with or room for improvement in system behavior at the time of switching to a backup in the event of a system failure

39

Mizuho Financial Group

Senior Executive Officer
Group Chief Information Officer(Group CIO)

IT governanceーStrengthened system releasecheck structure

Koji Yonei- Response rate on the staff
survey for IT employees
regarding their experiences at
the frontlines increased toabout 80%

Executive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Data section

Appendix

System failures: Response enhancement
Moving forward, we will continue to reinforce the frontlines through visualizing system and operational flows and through increasing organizational
knowledge about the lessons learned. At the same time, we will continue to review our operations and system specifications as part of maintaining stablebusiness operations.
Improving initial response time

ATM system failure response

Actions taken / Areas for improvement

Actions taken / Areas for improvement

Preliminary reportof system failures
being detected

External
announcement

System recovery

Current status1

Current status1

Generally within 30 minutes(Target range: within 1 hour)
Rigorous initial response
operations
No. of drills using actual
equipment
411
Visualization of systems
and operations
Main 30 operations / second
round started

No. of transactions
processed the next
day due to system
failure3

No. of ATMs outof service

Improvement of ATM
functionality
Installation of cameras withspeakers at all ATM sites

Most recently within 1 hour

No. of cases taking more than
3 hours: 0(Feb 28, 2021 – Mar 31, 2022:
10 incidents)
2(Feb 28, 2021 – Mar 31, 2022:
7 incidents)

No. of bankbook
and card captures

Improvement ofspecifications for capturing ofbankbooks and cards

29 units at most2(Feb 28, 2021: 4,318)

0 cases(Feb 28, 2021: 5,244)

1. Actual results from Apr 2022 to Mar 2023
2. Feb 2, 2023: Impact of external line network failure; restored within 46 minutes after the line switchover
3. No. of domestic system failures that resulted in transactions that should have been processed on the current day but that were processed in part on the following day, including transactions in progress, etc. No. of affectedtransactions decreased from several thousand to less than 100.

Governance
Legal compliance

Implementing supervisory functions

Establishment of procedures/structures related to foreign exchange laws
and regulations; multilayered initiatives to promote/ensure the cultivationof essential understanding among employees, including messages to
employees from executive management, employee workshops, and similar- Clarifying the basic approach and action guidelines and communicating these to
all employees through messages from the Group CEO; division heads andgeneral managers also sending messages in response to the actual situation on
the frontlines- Inspection activities and emergency preparedness drills by the frontlines andHead Office, with study sessions held at departments/branches

Carrying out initiatives aimed at enhancing the effective governancestructure of the entire group, such as enhancing the multifaceted
information-gathering capabilities of outside directors and the expertise of
the Board of Directors- Close exchange of opinions with the executive management of core groupcompanies and visits and communication with frontline offices, Mizuho
Research & Technologies offices, Head Office departments, etc.
- Nominated new outside director candidates, including ones with expertise intechnology

Enhancement of the autonomous action structure in place at the frontlines andat Head Office by reviewing training programs based on level of understanding andbehavioral changes and by expanding inspections beyond the scope of foreignexchange laws and regulations* Corporate Governance Report, Supplementary Principle [4.11.3]

Continued improvement activities, including those listed above, based on
the evaluation process of the effectiveness* of the Board of Directors and forthe enhancement of supervisory functions

https://www.mizuhogroup.com/binaries/content/assets/pdf/mizuhoglobal/who-we-are/governance/governance/g_report/g_report.pdf

Carrying forward lessons from the system failures
We have designated February as a month for reexamining the system failures. In February, executive messages are shared with employees and the initiatives
listed below are held in order to ensure that lessons from the system failures are carried forward.
Self-reflective video training sessions-Training sessions that discourage complacency andinstead encourage employees to always act in theinterest of our customers and society(Includes watching a training video and participating
in a workplace discussion)

Exhibition room on the theme of the IT
system failures-Exhibition room where employees can learn andthink about the past IT system failures and themeasures in place to stop them from reoccurring

Group-wide drills-Practical system- and operation-wide drills
Ensuring effectiveness through unannounced
scenario-based system failure response drills

Integrated Report 2023

40

Value creation process
Purpose

Proactively innovate together
with our clients for a prosperous
and sustainable future.

External environment

At Mizuho, following our Purpose, we take an integrated
approach to creating social value and enhancing corporate
value.
We will take on challenges alongside our customers andsociety, and we will grow as a company as we create apositive social impact. We will connect that growth withfurther value creation, aiming for a virtuous cycle of social
value creation and enhancement of corporate value.

Input
Mizuho's DNA
and strengths as a
unified group

Uncertainty inglobal affairs

Declining birthrate
Population decline

Age of longevity

Expansion of SDGsfocused initiatives

Advances in digitaltechnology

Changes due to
COVID-19

Business strategy and activities
Materiality areas●Declining birthrate and aging population, plus good health and lengthening lifespans●Industry development and innovation ●Sound economic growth●Environment and society ●Personnel⇒P. 45 Materiality●Governance

Financial capital●Stable financial base

Human capital●Talent with specialized expertise andinitiative●Group-wide HR framework

Intellectual capital●Financial and non-financial services andPriority areas for addressing social issues
and achieving sustainable growth
Support for the doubling of asset-based income

Improving customer experience

Enhancing the competitiveness of Japanese companies

Global Corporate & Investment Banking (CIB) business model

Sustainability and innovation

insights●Provision of functions as a unified group

Social andrelationship capital

In-house company system●Demonstrating and advancing expertise●Functionality as a unified group●Relationships with our individual andcorporate customers●Office network around the globe andnetworks in and outside Mizuho●Brand and market presence

Natural capital●Use of the environment and natural
resources based on Mizuho’s
Environmental Policy⇒P. 43 Capital for value creation

41

Mizuho Financial Group

Collaboration that transcends
existing boundaries●Connecting initiatives to create new
solutions●Open partnerships and collaboration

Our corporate foundations
Corporate culture transformation

Human capital enhancement

Digital transformation

IT reforms

Maintenance of stable business operations⇒P. 13 Feature: Growth strategy and medium-term business plan⇒P. 75 Business strategies by in-house company/unitExecutive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Data section

AppendixMizuho’s vision for the world (our long-term goal for the future)
Personal well-being and a sustainable society and economy

OutputRetail business in Japan●Increase the number of NISAs / iDeCo accounts●Increase assets under management (AUM) / balance ofinvestment trust AUM●Increase customer use of digital services

Corporate business in Japan●Help clients grow by supporting their business growthand corporate value enhancement●Facilitate greater activity in / expanded access to capital
markets in Japan

Sustainable business●Implement ¥100 trillion in sustainable finance (total from
FY2019 to FY2030)●Build various transition frameworks

Global business●Improve our presence in US capital markets●Act as a bridge to bring Japan together with the rest of
the world

People and organization / Governance●Put the Corporate Identity into practice●Strengthen personnel capabilities and become anorganization where people with diverse backgrounds
and experience can actively contribute●Maintain stable business operations and strengthen
governanceOutcomeCreate social value
Create positive social impact●Expansion of household financial assets in Japan●Progress towards a more inclusive society●Enhancement of Japan’s global competitiveness●Transition to net-zero carbon emissions worldwide

Improve sustainability
Environmental and climate change-related targets●Scope 1 and 2: Carbon neutral by FY2030●Scope 3: Net zero by 2050
Human capital-related targets●Percentage of management positions filled by women
30% (early 2030s)

Contribute for our shareholders and investors●Enhancement of corporate value (pathway towards bringing
our price-to-book ratio above 1 in the future)●Progressive dividends (40% dividend payout ratio as a guide)
and flexible and intermittent share buybacks

Medium-term business plan targets
Financial targets: Foundation for value creation●Consolidated ROE Over 8%●Consolidated Net Business Profits ¥1 trillion – ¥1.1 trillion
Non-financial targets: To grow alongside our employees●Engagement score 65%●Inclusion score 65%

Enhance corporate value⇒P. 47 Financial data / Non-financial data

Integrated Report 2023

42

Capital for value creation
Mizuho's DNA is to solve issues faced by society and pursue the public interest. As part of this, we maintain and cultivate our strengths as a unified group,
which we have been assembling since our three predecessor banks merged to establish Mizuho in 2000. Our DNA and strengths form the basis from which we
strive to enhance our input—our capital for value creation. As an organization in the service industry centered on finance, we are increasing a number of typesof capital: human capital and intellectual capital that exists within Mizuho; social and relationship capital that originates from our connections with customers
and society; and financial capital that is the foundation of our financial intermediary functions. Further, we have a strong awareness of how our businessactivities are supported by the planet and the natural environment, and as such we are striving for the sustainable use of natural resources.

Basic approach: Enhancing our capital for value creation based on Mizuho's DNA and our strengths as a unified group

Mizuho's DNA
and strengths asa unified group
Capital for value creation(Input)Financial
capitalAt the core of societal
and economic value
creation, as it enables
the provision of financial
intermediary functions⃝ 150-year history of contributing for our customers and society⃝ Corporate Philosophy: “Responsible and transparent”, Purpose: “Proactively innovate together with ourclients for a prosperous and sustainable future”⃝ Collaborative structure, nurtured under the “One Mizuho” concept; ability to respond to customer needs andprovide solutions as a unified group, firmly established under the group-wide in-house company system

Current situation / Unique characteristics

Main challenges(Initiatives for further raising each type of capital)⃝ Stable financial base for providing financial

intermediary functions
CET1 Capital Ratio (Basel III finalization fully
effective basis; excluding Net Unrealized Gains(Losses) on Other Securities): 9.5%
Balance of deposits: ¥150 trillion, NPL ratio: 1.00%
External ratings (Moody's: A1; S&P: A-; Fitch: A-)⃝ Improvements to Consolidated ROE and price-to-book

ratio⃝ Effective utilization of corporate resources throughactions such as business portfolio reviews⃝ Corporate culture transformation centered on employee

HumancapitalAt the core of all value
creation, especially as afinancial services group⃝ Talent with the expertise and initiative to support

business on a global basis
No. of group employees1: 49,068⃝ Group-wide transfers and career development
frameworks that support the unified strengths of thegroup

ownership of the Corporate Identity⃝ Raising employee engagement, becoming an even more

inclusive workplace, and further enabling every employee
to feel support and a sense of purpose at work
⃝ HR strategy in alignment with business strategy⃝ Standardized HR system covering five group companies1(Planned for fiscal 2024)
1. Mizuho Financial Group, Mizuho Bank, Mizuho Trust & Banking, Mizuho
Securities, and Mizuho Research & Technologies.

Intellectual
capitalTogether with ourhuman capital, at thecore of all value
creation

Social andrelationshipcapitalOur customers andsociety form the basis
for value creation, andtogether we growthrough that value
creation

NaturalcapitalThe global
environment andnatural capital are thebasis for the existenceof Mizuho

43

Mizuho Financial Group⃝ Wide-ranging financial and non-financial services that

we have developed as a financial services group,complemented by our expertise across industries,
products, and other specialist areas⃝ Provision of seamless financial and non-financial
functions as a unified group⃝ Stable IT system and business operations that form partof social infrastructure⃝ Further improvements to the expertise we havecultivated under our in-house company system, plus
collaboration that transcends existing boundaries⃝ Further improvements to productivity through digitaltransformation and other means⃝ Further strengthening and enhancing of corporate
foundations and corporate governance⃝ Relationships with our customers

Individual customers: Approx. 22 million people
Corporate clients in Japan: Approx. 80% of listed companies
Corporate clients outside Japan: Approx. 90% of major global companies2⃝ Our global network of offices and our internal andexternal networks⃝ Branding, trustworthiness, and dependability⃝ Market presence in areas which align with Mizuho’s strengths,
such as global capital markets and Japanese real estate⃝ Restoration of customer trust, previously damaged due tothe IT system failures⃝ Development of a business base that goes beyond thefive core group companies⃝ Expansion and creation of new business, including

through leveraging partnerships

2. Top 200 companies out of the Forbes Global 2000 (non-Japanese clients).

⃝ Use of the environment and natural resources based on

Mizuho’s Environmental Policy⃝ Client engagement in our responsible financing andinvestment and in our support for clients transitioning to
low carbon⃝ Further increase in sustainable finance

FY2019 – FY2030 target: Total of ¥100 trillion⃝ Achievement of carbon neutrality

Scope 1 and 2: Carbon neutral by FY2030
Scope 3: Net zero by 2050

Mizuho’s value creation process

Executive messages / Features

Business strategies for value creation

Governance for value creation

Data section

Appendix

History: Mizuho’s DNA
2023 marks 150 years since the founding of First National Bank, one of the three banks to which Mizuho traces its roots. Over Mizuho’s long history, we havecontinued to transform our organization in response to societal changes. We will leverage the strong foundations we have built to date to continue
contributing to the development of our customers, the economy, and society.
1873 First National Bank
1896
Name changed to
Dai-Ichi Bank
1971
Establishment of Dai-Ichi
Kangyo Bank through amerger with Nihon
Kangyo Bank・Merger of our three predecessor banks

・Mizuho Trust & Banking becomes wholly
owned subsidiary of Mizuho Financial Group・Establishment of Mizuho Bankand Mizuho Corporate Bank・Transition to a Company withThree Committees model ofcorporate governance・Listed on NYSE

(Photo: National
Diet Library)・Introduction of in-house company system
・Establishment of Asset Management One
・Establishment of Mizuho Americas
・Establishment of Mizuho
Research & Technologies

1880 Yasuda Bank
1948
Name changed to
Fuji Bank

1999

2000

2002

2003

2006

2011

2013

2014

2016

2020

2021

2022

(Photo: National
Diet Library)・Merger of Mizuho Trust & Banking and
Mizuho Asset Trust & Banking
・Establishment of Mizuho Financial Group

1902 Industrial Bank of Japan・Merger of Mizuho Securities and Mizuho
Investors Securities
・Merger of Mizuho Bank and Mizuho
Corporate Bank・Establishment of Mizuho Holdings(Photo: The
Mainichi)・Mizuho Securities
becomes wholly owned
subsidiary of Mizuho
Financial Group・Establishment of Custody Bank of Japan

Medium-term business plans
2005
Channel to Discovery
Plan

2010
Mizuho’s
Transformation Program

2013
One Mizuho New
Frontier Plan

2016
Progressive Developmentof One Mizuho

2019
5-Year Business Plan

2023
Medium-termbusiness plan

Aiming to be a financial
partner that helps
customers shape their
future and achieve their
dreamsAiming to be the mosttrusted financial
institution by ourcustomers in and outside
Japan by focusing on thecore function ofcontributing to socialand economic
development

In response to structuraland regulatory changes
in the economy andsociety in both Japanand overseas, aiming forthe new frontier offinance for the coming
era

Further development of
the One Mizuho strategy
by creating a new
business model as afinancial services
consulting group based on
the foundations ofoperational excellence
and a customer-focused
perspective

Transitioning to the next
generation of financial
services and building astronger and more
resilient financial groupwhich our customers candepend on in the comingera

A three-year journeyconnecting various
initiatives and cocreating value-added
solutions in order tosupport our clients andsolve social issues

Group framework: Strengths as a unified group
Mizuho’s business domains include banking, trust banking, securities, asset management, research and consulting, and other services. We have establishedfive in-house companies, which determine and promote group-wide strategies across banking, trust banking, securities, and other business areas according tocustomer segment, as well as two units that support all of the in-house companies. By leveraging these strengths, we will promptly provide clients withservices that match their needs.

Global Markets Company
Asset Management Company
Global Transaction Banking Unit
Research & Consulting Unit

Mizuho Bank

Global Corporate & Investment Banking Company

Securities

Asset
management

Research andconsulting

Customers
Individual customers / SMEs /middle-market firms

Mizuho Securities

Retail & Business Banking Company
Corporate & Investment Banking Company

Trust banking

Mizuho Trust & Banking

Banking

Large corporations / financial institutions /public-sector entities
Japanese and non-Japanese companies
operating outside Japan
Investors

AssetManagement
One

Investors

MizuhoResearch &Technologies

We carried out organizational reform in April 2023.We integrated the Corporate & Institutional Company with the investment banking functions of the Global Products Unit to establish a new
Corporate & Investment Banking Company. Integrating our customer point of contact and products operations in this way will enable us to better assist our clients in enhancing their corporate
value and to provide more timely support for business growth.The Global Products Unit’s transaction banking functions have become a separate Global Transaction Banking Unit. The new unit
develops stable settlement infrastructure for the medium to long term, produces solutions integrated on a global level, and houses our planning functions for next-generation settlement
infrastructure strategy.With the establishment of the Corporate & Investment Banking Company, the Global Corporate Company changed its name to become the Global Corporate & Investment
Banking Company.

Integrated Report 2023

44

Materiality / Risks and opportunities
At Mizuho, we take an integrated view on sustainability and business strategy. We have designated materiality areas based on (i) the expectations of society1 and(ii) their importance for Mizuho.2 Through our materiality-related initiatives, we will contribute to environmental conservation and the sustainable development andprosperity of the economy, industry, and society both in Japan and around the world. Also, we will engage in management practices that take into consideration
value creation for various stakeholders and will work to enhance our corporate value through the sustainable and steady growth of the Mizuho group.
1. Expectations of society: The expectations stakeholders have about Mizuho’s impact on society.
2. Importance for Mizuho: Medium- to long-term impact on our corporate value and compatibility with Mizuho’s strategies and business areas.

How we define materiality areas

Areas that include medium- to long-term priority issues for the sustainable growth anddevelopment of Mizuho, our clients, our employees, the economy, society, and other stakeholders

Significance of materiality areas
Corporate Identity

Business strategy

Corporate Philosophy

Mizuho's vision for theworld

10-year view

PurposeOur aim for the world in 10 years/ Direction of growth strategy

Materiality areas

3 years

Medium-term business plan

1 yearFiscal year plan

Reference

In principle, the Executive Management Committee and Board of Directors
conduct annual reviews of our materiality areas.

Check alignment with the expectations of society

Extreme long term

Contribution toachieving the SDGs

Revising our materiality areas⃝Shortlisted 16 items from among the top 15 items in Japan and the top 15
globally, using external data based on financial institutions’ disclosures forinvestors, regulatory trends, media sources, and similar.
⃝Shortlisted 14 items, consisting of additional matters for consideration andMizuho-specific matters, based on JFSA’s Strategic Directions and Priorities,
meetings with institutional investors, customer surveys, and similar.

Check alignment with importance for Mizuho⃝Confirmed how materiality areas and strategy relate to one another throughdiscussions on our growth strategy.

Confirm and decide on risks and opportunities and main initiatives

We will contribute to environmental conservation and the sustainable development and prosperity of the economy, industry, and society both inJapan and around the world, while achieving sustainable and steady growth for the Mizuho group. This is what we mean by sustainability at Mizuho.

How materiality areas relate to the growth strategy and medium-term business plan

At the time of discussions and deliberations regarding our growth strategy and medium-term business plan, we reconfirmed the suitability of our materiality areas and how they relate to our growth strategy and medium-term business plan.
Stakeholders

Personal well-being

Corporate

Markets

Sustainableeconomy andsociety

Environment

Foundations forcontribution

45

Mizuho Financial Group

Mizuho’s role / ImportanceMateriality areas

Medium-term business planpriority areas

Relieving worries about the futureeven in an age of longer lifespans
Providing safety, stability, andconvenience

Comprehensive asset management
consulting
Improving customer experience

Declining birthrate and aging
population, plus good healthand lengthening lifespans

Support for the doubling ofasset-based income

Accelerating initiatives andinnovation (such as sustainability
and digital transformation initiatives)

Business succession support
Support for next-generationcompanies and technology

Industry development andinnovation

Putting the Japanese economy on a
growth trajectory
Sound capital markets functions

Financial and non-financial functions
Contribution to market development

Sound economic growth

Acceleration of global initiatives fora low-carbon society

Transition support
Contribution to sustainable growth

Environment and society

Diversity and well-being

Creating a work environment thatgives employees a sense of purpose
Corporate culture that allows employees toplay an active role and reach their full potential

Personnel(Mizuho's vision for the world)

Employees

Economy and society

Customers

RetailExpectations of society / Importance

Corporate
foundations

Improving customer experience
Enhancing the competitiveness ofJapanese companies
Sustainability and innovation
Enhancing the competitiveness ofJapanese companies
Global Corporate & Investment
Banking (CIB) business model
Enhancing the competitiveness ofJapanese companies
Sustainability and innovation

Corporate culture transformation
Human capital enhancement
IT reforms

Sound corporate management

Stable business operations
Establishment of governanceframeworks

GovernanceDigital transformation
Maintenance of stable business
operations

Executive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Data section

Appendix

Risks and opportunities and main initiatives

Personal well-being

Materiality

Declining birthrate
and aging population, plus
good health and lengthening
lifespans
In an age of longer lifespans, provide
safe, stable, and convenient services
tailored to each individual’s needs

Industrydevelopment andinnovation

Sustainable economy and society

Support industry andbusiness development, andcreate new value on a global
basis

Sound
economic growth
Contribute to economic
development by utilizing
financial infrastructure
functions to respond tochanges in the Japanese andglobal business environment

Environmentand society
Cooperate with customers torealize sustainable social
development, including
environmental conservation

Corporate foundations

Personnel
Based on a corporate culture
where employees can act
independently, develop adiverse workforce thatgrows together withcustomers and society

Governance
Implement strong corporate
governance and stable
operational management tocontribute to our customers
and society

Risks for Mizuho

Opportunities for Mizuho

Main initiatives⃝Customer attrition and lost business
opportunities due to insufficientconsideration of aspects such as
diversity, insufficient channels andservices, and other deficiencies
resulting from not fully adapting tochanges in society, including thedeclining birthrate and aging population⃝Retail asset formation, management,
and succession business needs⃝Customer base expansion leveraging
digital channels and in-person
engagement⃝Provide comprehensive consulting on
retail asset formation, management,
and succession⃝Improve the quality and convenienceof customer touchpoints in both
digital channels and in-person
engagement⃝Increase in credit costs caused by thedeteriorated business performance ofcompanies resulting from a delayed
response to such factors as industry
structure transformation⃝Lost opportunities resulting from aninsufficient ability to respond tochanges in client needs⃝Changes in the competitive environment
accompanying advances in digital andsustainability transformation⃝Business needs such as sustainability,
industry/business structuretransformation, and businesssuccession⃝Business opportunities with startups/
innovative companies andopportunities for Mizuho to co-create
value with them⃝Create and capture business opportunities
by approaching industry as a whole, suchas through support for industry/businessstructure transformation in response to
climate change and similar challenges⃝Create positive social impacts bysupporting the growth of, and working
with, startups/innovative companies⃝Support business succession among
Japanese companies with competitivetechnologies⃝Lost opportunities resulting from a lackof solutions that adapt to changes inregulations and financial market
conditions, as well as businessrestrictions and increased compliancecosts arising from regulatory changes⃝Corporate value enhancement andbusiness expansion of our corporateclients, leading to the expansion of avariety of business opportunities infinancial and non-financial areas inand outside Japan.
⃝Expansion of global business sharethrough strengthening and fulfilling
our financial intermediary functions⃝Contribute to enhancing the corporate
value of publicly listed middle-market
firms and revitalizing the Japanese
economy⃝Respond to asset management needs
and extend our origination anddistribution (O&D) model bystrengthening our investment
capabilities⃝Expand our CIB business model inglobal capital markets⃝Increased credit costs resulting from alack of progress in clients’ businessstructure transformations fortransitioning to a low-carbon world⃝Public criticism of issues such as
insufficient consideration to climatechange and human rights in financing,investment, and procurement⃝Increased business opportunities inline with climate change response
and transition support needs⃝Relationships with stakeholders built
and strengthened through theformulation and implementation of
appropriate financing, investment,
and procurement policies, as well as
through social contribution activities⃝Take sustainability as an opportunity
to provide solutions and support
business structure transformation,and communicate these opportunities
across corporate client segments⃝Address climate change and otherenvironmental problems, and pursue
initiatives for society and humanrights⃝Issues such as overwork resulting inrequired payment of government fines
or compensation, as well as public
criticism and weakened employee
morale⃝Stagnation of strategy execution due tohigh turnover and personnel acquisition
constraints⃝Insufficient response to changes in thebusiness environment due to lack ofdiversity⃝Stronger overall business throughfostering a corporate culture thatencourages employees to act on theirown initiative⃝Positive cycle of human capital
investment and higher employee
motivation from fully engaging adiverse workforce in Mizuho’s
development⃝Promote group-wide corporate culture
transformation initiatives⃝Implement an HR strategy that is inalignment with business strategy⃝Realize an organization that supports
taking on challenges, rewards
contributions, and provides asupportive working environment⃝Administrative action, increased costs
related to government fines or
penalties, damage to social credibility,business activity suspensions, andstagnation of strategy execution, due toissues such as inadequate corporate
governance, violations of laws andregulations, IT system failures, andinsufficient responses to cyberattacks⃝Stronger capacity to executestrategies, as well as stronger
management and business baseoverall, through expanded andenhanced corporate governance andmanagement frameworks that reflect
our customers’ best interests andfocus on the situation at thefrontlines⃝Enhance operational resilience, which
is our ability to respond to crises
during times of regular business
operations⃝Continually upgrade our cybersecurity
measures and AML/CFT measures⃝Strengthen global governanceIntegrated Report 2023

46

Financial data

Consolidated ROE¹

Consolidated Net Business Profits¹（¥ billion）
Restoring soundness
in relation to unrealized
foreign bond losses
Approx. 100

TargetOver 8%

Prior to recording
one-time losses²

7.4%
5.9%

5.8%

6.4%

Prior to recording
one-time losses²

6.6%

603.1

853.1

799.7

807.1

1.2%

FY2018672.5

Target of¥1 trillion– ¥1.1 trillion

408.3
FY2019FY2020

FY2021

FY2022

FY2025

1. Excluding Net Unrealized Gains (Losses) on Other Securities
2. Prior to reflecting one-time losses in light of structural reforms

8.8%

FY2019FY2020

FY2021

FY2022

FY2025

1. Includes Net Gains (Losses) related to ETFs (Mizuho Bank and Mizuho Trust & Banking) and Net Gains(Losses) on Operating Investment Securities (Mizuho Securities consolidated)
2. Prior to reflecting one-time losses recorded in light of structural reforms

Common Equity Tier 1 (CET1) Capital Ratio*

9.1%

FY20189.3%

Cross-shareholdings¹（¥ billion）

9.5%

1,419.8

1,272.0

Target sales-422.52
1,167.7¥300.01,077.3

billion

8.2%
997.3

March 31,2019

March 31,2020

March 31,2021

March 31,2022

March 31,2023

* Basel III finalization fully effective basis, excluding Net Unrealized Gains (Losses) on Other Securities

Net Income Attributable to Mizuho Financial Group（¥ billion）

March 31,2019

March 31,2020

March 31,2021

March 31,

March 31,2022

March 31,

2023

2026

1. Acquisition cost basis
2. Of which, -¥383.8 billion from sales

Cash dividend per share*（¥）

Prior to recording
one-time losses*

581.8
448.5

471.0

FY2019FY2020

530.4

95

555.5
75

75

75

FY2018FY2019FY202080

85

FY2021

FY2022（Estimate）

96.5
FY2018FY2021* Prior to reflecting one-time losses recorded in light of structural reforms

47

Mizuho Financial GroupFY2022* Reflects the effect of the reverse stock split conducted in October 2020

FY2023

Executive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Data section

AppendixNon-financial data

Environment and climate change related
Sustainable finance
Environment and climate-related
finance (¥ trillion)

Scope 1 and 2 (GHG emissions across the seven group companies1) (ktCO e)
2

In relation to Scope 2, progress was made on switching to renewable energy in FY2022.

Target:

164

100

151

Of which, environment andclimate-related finance

21.2

FY202050
Total for
FY2019 – FY2030

Scope 3 (GHG emissions from financing and investment)
Medium-term targets were set for the following three sectors in FY2022 towardachieving net zero GHG emissions (Scope 3) in 2050.

SectorElectric
power

109

CarbonNeutralFY2022

FY20301. Mizuho Financial Group, Mizuho Bank, Mizuho Trust & Banking, Mizuho Securities, Mizuho Research & Technologies2, AssetManagement One, and Mizuho Americas (data up to FY2021 are for eight group companies including the former Mizuho Private WealthManagement3).
2. Data up to FY2020 combines figures for the former Mizuho Information & Research Institute and former Mizuho Research Institute.
3. Company liquidated on March 23, 2022; functions taken over by Mizuho Bank.

8.1
Total for
FY2019 – FY2022

FY2021(provisional)

Target
FY2030138-232 kgCO2e/MWh

Outstanding credit balance for coal-fired power
plants based on our Environmental and Social
Management Policy for Financing and Investment
Activity

FY2021 result

TargetFY2022 result

353kgCO2e/MWh

FY2030: Reduce the FY2019 amount by 50%
FY2040: Zero

21.4% reduction

Oil and gas Scope 1 and 2
FY2030 4.2 gCO2e/MJ(¥235.5 billion)

6.5gCO2e/MJ
Exposure to high-risk areas in transition risk sectors

43.2MtCO2e

Scope 3
-12 to -29% (compared to FY2019)

TargetFY2022 result

Reduce over the medium to long term

¥1.6 trillion(-29%)

FY2030 OECD countries: Zero balance
Thermalcoal mining FY2040 Non-OECD countries: Zero balance

1.7MtCO2e⇒P.61 Sustainability

Human capital related
Engagement score1

Inclusion score1

Percentage of management positions filled by women3

TargetFY2022 result

TargetFY2022 result

FY2025 65%

51%

FY2025 65%

55%

Percentage of management positions outside Japan filled by employees hired outside Japan2
Level to be achieved continuously

FY2022 result

83%

84%

Target: 30%● Manager equivalent and above● General manager equivalent4(general managers and equivalent roles)

19%

16%

9%

7%

FY2022

FY2021

1. Based on the positive response rate (selection of 4 or 5 on a scale from 1 to 5) for four Staff Survey questions related to engagement and inclusion.
2. Total of Mizuho Bank, Mizuho Trust & Banking, and Mizuho Securities
3. Japan (Total of Mizuho Financial Group, Mizuho Bank, Mizuho Trust & Banking, Mizuho Securities, and Mizuho Research & Technologies)
4. In FY2023, we revised the standards for calculation to align with the medium-term business plan. FY2021 and 2022 result reflect the new standards.

Results

21%

14%

FY2025

Early 2030s
Target⇒P.49 Human capital management

Integrated Report 2023

48

Human capital management

The source of Mizuho’s corporate value is our people.
Through our new human resources framework inJapan, CANADE, we will continually help our people
develop their skills and careers. In doing so, we will
create social value and enhance corporate value inline with our medium-term business plan.

Nobuhiro Kaminoyama
Member of the Board of Directors
Group Chief Human Resources Officer (Group CHRO)

One of the most indispensable forms of capital for business is humancapital. Even as the relationship between employers and employees shiftswith the changing times and business environment, the need forcompanies to secure a sufficient number of qualified professionals is aconstant. Under the revised Corporate Identity, we are aiming tocontinuously help our people—the source of our corporate value—todevelop their skills and careers. With this goal, we have already begun
moving towards a new HR framework in Japan, and we plan to transition
fully in fiscal 2024. One of our main aspirations in designing the newframework was to ensure a harmony between the organization andindividual employees, enabling collaborative creative input. Accordingly,
we are calling the new framework “CANADE”, a reference to theJapanese word for the beautiful harmony musicians create when they play
together in concert.
The HR system under CANADE will be a unified platform covering five of
our group companies,* previously unseen in either the financial or otherindustries. Employees will be able to transfer between companies basedon business area, allowing for optimal allocation and rigorous
development of personnel. In order to execute our strategies, we willcontinue disciplined optimization across the overall organization. Alongwith this, we will thoroughly implement strategic HR that allows eachbusiness area to take the lead on its own HR management, including inaligning compensation with promotion, roles, and results.
At the foundation of our HR under CANADE will be employees’ narratives.
We believe our people will be able to maximize their latent potential ifthey take their own individuality as a starting point towards building theirown career paths. In addition, we will strive to improve support for themand give them a greater sense of purpose.
CANADE will further develop the talent that supports our business while
also enabling each person to demonstrate their individuality and skills. In
this way, it will be an integral part of our deep commitment to serving
client needs, enabling our people to flourish, and helping to improvesociety and the communities where we do business. We will proactively
innovate together with our colleagues to enhance our human capital andachieve a prosperous and sustainable future.
* ‌Mizuho Financial Group, Mizuho Bank, Mizuho Trust & Banking, Mizuho Securities, and Mizuho
Research & Technologies.

The new Corporate Identity and CANADE
Corporate Identity49

Corporate Philosophy

Operating responsibly and transparently with foresight, Mizuho is deeplycommitted to serving client needs, enabling our people to flourish, andhelping to improve society and the communities where we do business.

Purpose

Proactively innovate together with our clientsfor a prosperous and sustainable future.

ValuesBe a catalyst for change.
▶Integrity▶Passion▶Agility▶Creativity▶EmpathyMizuho Financial GroupNew HR framework CANADE
Mizuho is deeply committed to enabling everyone in ourorganization to be their full selves at work.
Proactively create together with ourcolleagues for a unified and effective organization.
Co-creation
Authenticity
Nurturing
Agility
Diversity, Equity & Inclusion
Engagement

Prioritize employee
narratives
Thoroughly implement
strategic HR

Executive messages / Features

Business strategies for value creation

Mizuho’s value creation process

Governance for value creation

Structure for HR management

Mizuho Financial Group

Important matters of HR management are deliberated by the businessSupervision

execution line and supervised by the Board of Directors. The Group

Data section

Appendix

Management

Board of Directors

Group CEOCHRO is responsible for HR strategy and human capital policy, planning

Executive Management Committee

and facilitating HR management initiatives for the overall group. The
Group Chief People Officer (Group CPO), a position established in May

Group CHRO

Group CPO

HR strategy / human capital policy

Talent and organizational development

Human Rights Awarenessand Promotion Committee

Diversity, Equity & Inclusion
Promotion Committee

2022, promotes talent and organizational development and diversity,
equity, and inclusion as part of HR management. The Group CHRO andGroup CPO work together to enhance our human capital.
Directions and support for initiatives

Mizuho group companies

Human capital KPIs
KPI

FY2022 result

Maintain at 2x or more the2x or more numberof executive officers

N/A+100 employees

Digital transformation basics 2

N/A+1,000 employees

Business succession 4

N/A+100 employees

Startups/innovative companies 5

N/A+200 employees

Global business 6

N/A+150 employees

Sustainability
transformation

Sustainability
management experts

1,300 employees 1,600 employees

Sustainability
transformation

Environmental /energy sector consultants

130 employees 150 employees

Engagement score 7

51%

65%

Inclusion score 7

55%

65%

Percentage of management positions filled
by women (general manager equivalent)

9%

14%

Percentage of management positions filled
by women (manager equivalent and above)

19%

21%

Percentage of paid annual leave takenby employees

78%

Maintain atRealize Corporate Identity

1,790 employees 2,100 employees
Expand and enhance human capital

Personal consulting 3

Ensuring anorganizational
culture that enables
everyone to actively
participate

Develop personnel with qualifications in focus areas
as part of implementing business strategy at Mizuho

Digital transformation 1

Advance diversity inthe organization andmake workplaceseven more inclusive

Prioritize employee narratives

Thoroughly implement strategic HR

Management

CANADEFY2025 target

Target 30%
by early
2030s

70% or above

1. ‌Digital Transformation Skills Certification Lv. 4 (equivalent to Level 3 or above in the Skill Standards for IT Professionals of the Information Technology Promotion Agency, Japan; able to perform all assigned duties and leadprojects independently; program launched in FY2023).
2. ‌Digital Transformation Skills Certification Lv. 2 (equivalent to Level 1 or above in the Skill Standards for IT Professionals of the Information Technology Promotion Agency, Japan; has the basic minimum knowledge required
to promote digital transformation; program launched in FY2023).
3. Certified Skilled Professionals of Financial Planning 1st-grade or Certified Financial Planners (international certification).
4. In-house certified personnel (program launched in FY2023).
5. In-house certified personnel able to support startups/innovative companies (program launched in FY2023).
6. New international assignees from Japan.
7. Based on the positive response rate (selection of 4 or 5 on a scale from 1 to 5) for four Staff Survey questions related to engagement and inclusion.

Integrated Report 2023

50

Human capital management

New HR framework in Japan, CANADEAt Mizuho in Japan, we are launching a new HR framework covering five of our group companies.* It will allow for strategic development of management
candidates and business leaders and for flexible allocation of personnel in line with our business strategy.
What underpins the corporate culture transformation we are currently working towards is the ability of every person to feel support and a sense of purpose atwork. People should be able to demonstrate their strengths and individual talents, remain enthusiastic in both their attitudes and actions, and find fulfillment
in their growth. Through the bold revision of our HR framework, we are aiming to realize this for each individual. The evaluation system will also change tomake Mizuho’s Values the core of the evaluation criteria. The new evaluation system will ensure the Corporate Identity firmly takes root at Mizuho and will
also put greater emphasis on individual contributions to the organization, which will in turn encourage our people to transform their mindsets and behaviors.
CANADE consists of this series of initiatives and will move forward from the following three perspectives.
1. Company initiatives:(1) ‌Support self-driven endeavors: Expand investment in training and reskilling for career development and improve systems that
support people in taking on challenges(2) ‌Reward contributions: Encourage people to strive and grow and reward their contributions through internal systems andmanagement(3) ‌Provide supportive working environments: Improve employee health and become an organization where people from a variety ofbackgrounds and with a range of values respect one another and enjoy engaging in constructive discussions
2. Employee initiatives:
Put the Corporate Philosophy, Purpose, and Values into practice
3. Company and employee joint initiatives:
Co-create the new HR framework with “co-creators” as bridges
The name CANADE comes from the Japanese word for the beautiful harmony musicians create when they play together in concert. It reflects our aspiration of
fostering a harmony between the organization and individual employees to enable collaborative and creative input for the future of Mizuho. Matching thisaspiration, we are giving attention to the views and feedback of employees and outside directors in creating the new framework. Both the business execution
line and Board of Directors will continue their discussions ahead of the full transition in April 2024.
* Mizuho Financial Group, Mizuho Bank, Mizuho Trust & Banking, Mizuho Securities, and Mizuho Research & Technologies.

Realizing the Corporate Identity

CANADE
Flexible allocation of personnel across entity boundaries / development of personnel who will lead our business
Executive leadership development initiatives

Business strategy

1.1

Sync
Strategic HR

Business leadership development enhancement initiatives

HR strategy

1.2

Supporting self-driven endeavors

Rewarding contributions

Encouraging self-driven endeavors and growth and rewarding
contributions through internal systems and management 2.1
Investing in upskilling and reskilling

Emphasizing theindividual and moving
away from uniformity

Encouraging self-driven endeavors and growth and rewarding
contributions through internal systems and management

2.1

2.2

Supporting employees

Employee narratives
Revising work styles

Promoting women's participation andadvancement in the workplace 4.1

Supporting healthWorking environment where everyone
can be their full selves 4.2

3.1
3.2

Organizational development initiatives

5.2

People being their full selves, finding fulfillment in their growth, and feeling a sense of purpose in working at Mizuho

51

Mizuho Financial GroupExecutive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Data section

Appendix

Employee co-creation framework with “co-creators”
The approach of the company and the views of employees are both vital for creating CANADE in Japan. “Co-creators” represent one channel ofcommunication between the company and employees. These are employees that have volunteered to move forward various initiatives for CANADE alongside
their regular duties. Through their activities, we are adapting CANADE to reflect employees’ views and implementing employee narratives.

Implementing employee narratives

CANADE
Instill a sense of ownership across the organization by integrating both the company’s approach and employees’ views

Company’s approach
Employees’ views

Co-creators
Employees volunteer to work on co-creator activities alongside their regular duties.

From a co-creator

I want coming up with ideas and setting a path towards the future to be a collaborative process
I applied to be a co-creator because I wanted to communicate the views of the employees on the frontlines, roll out Mizuho’s
new initiatives both internally and externally, and demonstrate Mizuho’s appeal to a broader audience. I was involved in thecall for applications for the CANADE logo design. I felt this would be a good chance to generate interest in CANADE amongpeople who had not given it much notice yet. In fact, we ended up receiving 160 proposals, and 2,818 colleagues voted in the
final round. It turned out to be a solid first step towards realizing CANADE’s goal of creating and harmonizing together.

Rie Asakura
Mizuho Bank
Utsunomiya Branch

The essence of CANADE is in the relationship between the company and employees and inenabling every person to learn about and exercise their own individuality. I want to encourage
my colleagues to search for their individuality without trying to fit themselves into boxes. By
doing this, more of us at Mizuho will be able to take greater ownership over our initiatives andinformation sharing, and more of us will become co-creators, collaborating with the company
and one another to come up with ideas and set a path towards the future. I hope our co-creator
activities will show everyone that if they take action they can effect change.

Revision of HR systems and management that reflect employee feedback
Employees and Mizuho are engaging in ongoing discussions on both work and work styles, so that every person can enjoy work-life satisfaction. Outside ofco-creator activities, we are accounting for employees’ views in revising our systems and management across a number of areas.

Revisions of awards recognizing employees who havemade outstanding contributions to Mizuho’s development
Employees’
views

There are too many awards, which makes them less meaningful forthe awardees.
Also, in a lot of cases, people don’t seem to know about theawarded initiative, so it would be better to be more selective.

We revised the number of awarded initiatives toraise employee’s motivation for taking onchallenges and to better communicate exemplary
initiatives.

New leave system for accompanying partners
on long-distance personnel transfers
Employees’
views

My partner is moving due to a long-distance personnel transfer.
I want to go with them, but under the current system the only
option for that is to quit my job.

We established a new leave system that allows employees toaccompany partners who are moving due to long-distancepersonnel transfers. The new system is one of our efforts to createa working environment in which employees experiencing various
life events can still have agency over their career development.

Maki Kurusu

Talent Planning and Management Department, Mizuho Financial GroupAkane Tsuchida

Talent Planning and Management Department, Mizuho Financial Group

Integrated Report 2023

52

Human capital management

Developing Mizuho’s personnel through CANADETo ensure we have a talent pool that can sustain our business management going forward, we have reorganized our executive leadership development
program and are cultivating personnel who will lead the organization and individual business areas at Mizuho. Another essential element is the developmentof each individual’s capabilities. As such, we are supporting self-driven endeavors and providing the necessary career design training.

How are we developing and producing personnel who will lead the organization and individual business areas?
1.1

Executive leadership development initiatives

Given the fast-paced changes and uncertainty in the business environment, developing personnel who will lead our business is critical to Mizuho’s sustainablegrowth.

Executive
officers

Select candidate
Reflection

Ensurecandidate poolis 2x or more
the number of
executive
officers

Operatingofficers

Select future business management
candidates from across different generations

Evaluation update

Training
AOI Program,* external assignment program, etc.

Experience

Operating officer
candidates

Study

Strategic assignment
Give stretch assignments based on individual
Career Development Program results

Management
candidates* A selective, job grade-specific, Mizuho-original program for developing management personnel.

Identify potential candidates early on, provide them with multiple assignments, and promote discontinuous and enduring behavioral change

1.2

Business leadership development enhancement initiatives
Business focus areas

Personnel/skill categories for advancing business focus areas

KPIs

Improving customer experience

Digital transformation

Set KPIs for each personnel/skill category⇒ P. 50 Human capital KPIs

Personal consulting

Support for the doubling of asset-based income

Talent portfolio needed to
execute growth strategy
in the future

Business succession

Enhancing the competitiveness of Japanese companies

Startups/innovative companies

Global Corporate & Investment Banking (CIB) business model

Assess gap

Global business

Sustainability and innovation

Current talent portfolio

Sustainability transformation

Human Resources Strategy Council
Monitors gap between current and desired talent portfolio across business lines

Hiring53

Secure professionals with fresh insights andknowledge from outside Mizuho

Mizuho Financial Group

Development

Continuously upgrade employee capabilities
and skills, including through reskilling

Transfers

Strategically transfer and assign employees
and provide them with opportunities toacquire necessary experience and expertiseExecutive messages / Features

Business strategies for value creation

Mizuho’s value creation process

Governance for value creation

Data section

Appendix

Elevating individual employees’ capabilities by encouraging them to strive and growFor employees to take on challenges and build their own unique careers, they must have opportunities to do so that extend beyond entity boundaries. They
must also have support from middle management, which serves as a channel of communication between the company and employees. Because of this, we areworking to provide more cross-entity opportunities and further improve middle managers’ skills. We are also expanding our investment in personnel
development to enable our people to pursue their endeavors in line with their own individual growth and life stages.
2.1

Encouraging self-driven endeavors and growth and rewarding contributions through internal systems and management
Our people’s self-driven endeavors and growth contribute to implementing business strategy

Implement
growth strategy

Initiatives supporting self-driven endeavors

Employee

Employees’
endeavors

Suitable feedback encouraging
self-driven endeavors and growthInternal job posting system

Employees apply for positions they are interested inacross the group

317 assignments

Internal concurrent assignments

Employees spend part of the week working in anotherdepartment while still continuing their main duties

100 assignments

External part-time work system

Employees can use their time after work and their time on
weekends to explore possibilities outside their usual duties

606 approvals

External concurrent assignments

Employees take on assignments at other companies to gain
more diverse outlooks and improve their skills and knowledge

12 assignments

Revision to feedback system to encourage self-driven endeavors and growth
Assess employee’s
growth and provide
accurate feedback

Improvefeedbacksystem

Improve
middle managers’
skills2.2* Percentage of respondents who selected the most positive responses on a four-point scale (FY2021 to FY2022).

Satisfaction with supervisor’s explanation of your individual strengths

55% → 72%*

Satisfaction with supervisor’s explanation of areas for improvement

51% → 69%*

Satisfaction with supervisor’s advice on overcoming challenges

46% → 66%*

Expand management training to improve the skills of those in middle management, who serve as a channel ofcommunication between the company and employees.

Supervisor

Investing in upskilling and reskilling

Enable employees' continuous acquisition and application of new skills for reaching their full potential at work, position this as upskilling and reskilling for Mizuho, and expand investment in it

Initiatives to raise employee expertise

Study through digital learning platforms
ReskillSelfdirectedstudy

Cloud / AI

Sustainability

Analytics

Innovation

531 courses(+485 from fiscal 2019)

Investment in personnel development
FY2025 outlook(estimate)¥100,000/yr
per employee

Skills training
Upskill

Portable skills
training

Training to improve generalskills such as problemsolving and leadership

Studying Internal employee-led seminars
withExpert knowledge inPractical skills and knowledge
applicable to regular duties
colleagues various business fields

Industry exchange
training

Study with others and shareknowledge across the organization

Training on launching new business
and/or working to resolve social issues
with employees from other companies¥70,000/yr
per employee(¥3.3 billion overall)Training¥60,000/yr expenses

1,263 employees

Second–year
employee

Deepen understanding of duties and think about career, preparing to design future career path before
first personnel transfer

By age range

Confirm direction of career in light of changes in life role and values and upskill/reskill(20s to 50s)

from FY2022)
FY2022

Total number ofparticipants

Employees determine their own career goals and take career training in which they design action plans to achieve those goals
Mindset for selfdirected study(+ ¥1 billion overall

per employee(¥2.6 billion overall)

FY2021

Training¥40,000/yr expenses
per employee(¥2 billion overall)

Including associated expenses other than training,such as learning-related IT system infrastructure

Integrated Report 2023

54

Human capital management

Establishing workplaces that support the active participation of people from a variety of backgrounds
To raise our ability to respond to changes in the business environment, continue transforming as an organization and achieve sustainable growth, we will
focus more than ever on providing our people with support and a sense of purpose. We will put in place working environments that promote sound physical,
mental, and financial health and enable our people to reach their full potential at work. This will further acceptance of diverse backgrounds, experiences, andvalues and draw out the strengths and individuality of everyone at Mizuho.

How are we supporting and motivating our people so that they can be themselves and realize their full potential at work?
With the support of outside experts on work style reform, we are changing executive officer and employee mindsets and reviewing work styles at each of ouroffices. We are also making efforts to support employee health. We consider a shift in employee thinking on health to be important for improving their health.
As such, in fiscal 2022 we held a wide range of events and seminars on healthy lifestyles and exercise habits.
3.1

Revising work styles and promoting work-life satisfaction
Set schedule for revising work styles

Training session for
executive officers

Featured insights onwork style reform fromoutside expert

Held training session to communicate the need to revise work styles

Held executive-level session on work styles and publicized the commitment of the
CUG heads** Group head titles were changed to the “Group CxO” pattern in FY2023.
Session between Group CPO Natsumi
Akita and the heads of in-housecompanies, units, and groups (CUGs)

Examples of commitments by CUG heads■Personal work style“I’m going to delegate more and spend appropriate intervals away from work.”
Maintaining intervals of 13 hours or more to make valuable timefor family and personal interests■Organizational work style“Our work style will be family-positive and will set an impressive social standard.”
Respecting individual values and work styles that strike abalance between work and family life

Survey on changing mindsets about work styles
Session between GroupCPO Natsumi Akita andgeneral managers

Trial of new work styles

3.2

Also held session with general managers on revising
work styles

Can you actually put a newwork style into practice?

Understanding and acceptanceof revising work styles

responded yes* Average of responses on a five-point scale

97%

4.7*

Having heard from employees looking for specific work style-related information, in January2023 we began revising work styles in collaboration with the company Work Life Balance.

Supporting employee health so that our people can reach their full potential at work

Improve motivation and productivity by ensuring our people can reach their full potential at work
Physical and mental health

Financial health

Established Mizuho Health Promotion Month

Promoted financial wellness

Held assorted events and significantly improved employee thinking about healthSupported asset formation and acquisition of knowledge to facilitate financial security

3,000 participants

Walking event
Good sleep seminar×

Exercise seminars

×

Asset formation support
Asset formation
support

Relevant methods
Employee savings plan
Corporate-type defined contribution pension plans
Employee shareholder program

Individual-type defined
contribution pension plans (iDeCo)** Subsidy payment only

Eating for better productivity seminar
Improving health literacy seminar
Furthering awareness of women’s health issues seminar

55

Mizuho Financial Group

Seminarparticipants

New hire education

Ongoing education
Internal e-learning

Corporate-type defined
contribution pension plan
education

4,700 in total
Release of tool for
projecting futureliving expenses

Simulation tool using corporate pension savings data
Mizuho Design for Longevity service

Executive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Data section

Appendix

How do we promote the active participation of personnel from a variety of backgrounds?
To raise our ability to respond to various changes in the business environment and achieve sustainable growth, we need to further embrace diverse
perspectives, ideas, and values. We will become a more inclusive organization where everyone respects the diversity of each other’s experiences and values
and where all members can fully exercise their individuality and abilities. We are moving forward a number of measures to advance diversity at the decisionmaking level, including management, as well.

Promoting women’s participation and advancement with supportive workplace environments

4.1

Measures to increase the percentage of executive officer and general manager equivalent and above positions filled by women

Mentoring by executive officers

Training for women newly appointed as general managers
Round table between women newly
appointed as general managers,
Group CPO Natsumi Akita, andwomen who are executive officers
at other companies

One onone

Executive officer

Deputy general manager or similar

Role play exercise

Percentage of management positions filled by women● Manager equivalent and above ● General manager equivalent* (general managers and equivalent roles )16%

FY2021

Gender wage gap

FY2022

Early 2030s
Targets* In FY2023, we revised the standards for calculation to align with the medium-termbusiness plan. FY2021 and 2022 results above reflect the new standards.

Hiring talent from a varietyof backgrounds
Ensuring supportive
working environments

47%
General manager level 90%
Manager level 91%

All employees

FY2025Results

Method for determining compensation: Mizuho determines compensation and other benefits based on the
responsibilities of one’s work and position, without regard for gender.
Main factors in wage gap: Men (1) comprise a higher share of management positions, (2) are more likely to be inpositions that are subject to long-distance personnel transfers and so come with higher salary levels, and (3) tend towork longer hours.
Comparison of management positions: For upper-level management positions, the gap is in the 90% to 100% range.
The primary reason for the gap is that men are more likely to be subject to long-distance personnel transfers.
Policy going forward: We plan to consolidate salary structures in fiscal 2024 to eliminate the current differences
associated with being subject to long-distance personnel transfers. We will also continue to promote women’s
participation and advancement in the workplace and to reform work styles.

(average annual wage for women /average annual wage for men x 100)

14%

9%

7%

30%

21%

19%

Percentage of womenin new graduates hired
Percentage of eligible male employees who take childcare leave

104% (maintaining at 100%)*31% (maintaining at 30% or above)

Percentage of employees returning towork after childcare leave

94%

Percentage of paid annual leave taken by employees

78% (maintaining at 70% or above)* Due to revisions to relevant laws, FY2022 results have been calculated using legally defined rules (percentages of employees who take childcare leave), while FY2021 results have been calculated using
Mizuho’s own methods.

4.2

Creating working environments where people with different values can be their full selves
Locally led organizational management

Globalinitiatives

LGBT+

Promoting theactiveparticipationof employees
withdisabilities

Maintain and expand management base at locations outside Japan

Percentage of management
positions outside Japan filled by
employees hired outside Japan

Locations, regions, and Head Offices work together tocreate succession development plans for key positions(maintaining at 83% or above)

Initiatives at Mizuho

Initiatives outside Mizuho⃝ Implemented training for all
executive officers and employees⃝ Conducted anonymous survey to
be completed alongside thetraining and disseminated resultsinternally

We embarked on a Pride project withJapan’s other megabanks to raiseawareness about LGBT+ issues among
employees and their families⃝ Pride Art: Mosaic art⃝ Pride Learning: Online event for raisingawareness⃝ Pride Movie: Ally-centric video⃝ In October 2022, employees from Mizuho gave a lecture at a university about theimportance of employing people with disabilities to diversity, equity, and inclusion.
⃝ While up until now some employees with disabilities have only worked in backoffice operations, we have begun looking to expand their duties to include
business areas. To this end, we are revising operational processes and helping
our employees to improve their skills.

84%

Each region or Head Office holds
leadership training
Local management

Understand strategy
Broaden outlook
Extend scope of duties

Increase in employee
awareness of LGBT+ issues*2x* The percentage of employees who
responded that they did not know
any LGBT+ people was half that ofthe previous year.

Percentage of employees whoare individuals with disabilities

2.7%

Integrated Report 2023

56

Human capital management

Ensuring an organizational culture that enables everyone to actively participate

Working with colleagues towards a culture of think, act, and deliver
Under our revised Corporate Identity, we are improving working

not possible without corporate culture transformation, and we areenvironments so that everyone can speak their mind and take action

pursuing it from this long-term perspective as well.

without unreasonable restraints, and we are fostering a corporate culture
where everyone can demonstrate initiative and where constructive

Corporate culture transformation and HR system reforms are also tightly

discussions can take place. Instilling in our people a sense of ownershipintertwined. In 2024, we will be transitioning to a new HR framework inover our new Purpose of “Proactively innovate together with our clients forJapan, one that will allow for the company and employees to be fair anda prosperous and sustainable future”—which expresses what we are

equal partners striving and creating value together. Building such aseeking and what we value—will be crucial to transforming our corporate

relationship requires improving engagement with each and every person

culture. As such, those of us in management are leading the way by

and becoming a more inclusive organization. Accordingly, in fiscal 2022

putting the Purpose into practice in our own actions and communicating it

we focused on reflecting our people’s views in management and on

in our attitudes. Along with this, we are implementing messaging based

advancing mutual understanding through organizational development,on the Purpose.

undertaking a range of initiatives in this regard. However, there is stillroom for improvement in our engagement and inclusion scores. We willOn the other hand, corporate culture is not something that can be top-down.

enhance our initiatives going forward while continuing to listen to our

It will move forward only when all of our people identify with the Purpose

colleagues.

and apply it in their actions of their own accord, thus fostering a set ofcommon values. Given this, management is doing all we can to create more

2023 marks 150 years since theopportunities to talk directly with employees, proactively integrate theirfounding of First National Bank, one

views and feedback, and support them in the achievement of their self-of the three banks to which Mizuho

driven efforts and ideas. The success of our corporate culture transformation

traces its roots. Mizuho’s legacy,depends on everyone here adopting the new Purpose as their own.

established over the last 150 years,
is of growth through positive

If we can cultivate a better culture, our people will be able to reach theircontributions for our clients andfull potential at work and, in doing so, identify their own individual sense

society. As we preserve this legacy,of purpose and pride. Part of this cultivation is people from a variety of

we will communicate our new

backgrounds being able to play an active role here, which accelerates

Purpose and our determination as ainnovation, improves our brand value, and ultimately advances our long-unified group to audiences bothterm competitiveness. Producing and maintaining such a virtuous cycle isinside and outside Mizuho.

Structure for corporate culture transformation
Important matters for corporate culture transformation and responses toresults from staff surveys are deliberated by the business execution line,
including at meetings of general managers of relevant departments
chaired by the Group CCuO and at meetings of the Executive Management
Committee. The matters are supervised by the Board of Directors.
The Group CCuO and Corporate Culture Office proactively consult with

Natsumi Akita

Senior Executive Officer
Group Chief Culture Officer (Group CCuO)
and Group Chief People Officer (Group CPO)

Mizuho Financial Group
Supervision

Management

Board of Directors

Group CEO
Executive Management Committee

Group CCuO Corporate culture transformation
Department in charge Corporate Culture Officeoutside experts and utilize their input in corporate culture transformation
initiatives for each group company.

Directions and support for initiatives

Mizuho group companies

57

Mizuho Financial GroupExecutive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Data section

Appendix

How are we drawing out our people’s motivation and improving our organization towards transforming our corporate culture?
In fiscal 2022, we renewed our Staff Survey, implementing a structurethat allows us to more effectively analyze underlying causes anddesign specific approaches. We then came up with comprehensive
scoring for positive response rates on engagement and inclusion andset these scores as KPIs.

FY2022
resultWe are reflecting our people’s views in management and bringing up
their motivation by supporting their efforts to reach their full potential
at work. In tandem, we are improving engagement and our organization
with frameworks and opportunities that further internal communicationand mutual understanding.

FY2025targetComponent items

Engagement score51% 65%

Willingness to recommend
Mizuho, pride in work, sense ofachievement, desire to contribute

Inclusion score55% 65%

Diversity, individual expression,
relationships with colleagues,
sense of belonging

Reflecting the views of our people in management

5.1

Initiatives for our people to take ownership of management areas and lead transformation

Our people’s views are being reflected in management areas such as internal operations and the Corporate Identity⃝Elimination of unnecessary internal processes based on employee recommendations
Recommend

Corporate
Culture Office

Report results

Share progress

Employee recommendations: approx.

Coordinate withdepartments in charge⃝Revision of the Corporate Identity

Departments incharge ofprocedures andother aspects

Employee-led working
groups discuss
Create draft

1,000 ▶ Processes improved or eliminated: approx. 400

Management reviews
Employee survey
Approx.

3,200 submissions

Final Corporate
Identity and tagline

Management discusses

Workplace-led organizational development initiatives

5.2

View from offices involved in organizational development

Organizational development initiatives

Strengthening interpersonal relationships

Improving internal communication and collaboration

Enhancing organizational climate▶Ensuring psychological safety▶Promoting mutual understanding▶Sharing an office vision▶Coordinating and helping one another▶Innovative spirit▶Demonstrating initiative▶Increasing employee engagement▶Organizational performance

Programs

Foundations

Individual support through combination of HR and external consultants
Group training aimed at developing organizational development leaders

Able to feel change in the culture of theworkplace and in colleagues’ behavior

75%

Initiative leaders said:▶We were able to transform mindsets and takeconcrete action with a grassroots approach.
▶I could really feel I was helping myorganization become better, which encouraged
me to be even more forward looking.
▶Talking with one another deepened our mutual
understanding and led to improvements in ouroperational processes.

Collecting and sharing of knowledge, expertise, and success stories
Building and utilizing a network of supporters

Introducing new communication tools to ensure robust connections within the organization

5.3

Improving internal communication

We have introduced new communication tools our people can use to connect with one another, and we are already seeing more vibrant interaction across departmental and operational boundaries.
⃝Launch of internal social media【 会社全体 】

木原社長がダボス会議に参加されました︕【 子育て"あったか " 】

最近、投稿やいいね︕が増えてます︕⃝Launch of tool for sending words of encouragement to colleagues【 進め︕みずほの DX︕ 】

加藤頭取からもコメント頂きました︕

Users have created over 100 communities, and the number ofdaily active users can surpass 2,000.

Eight offices participatedin a trial of the tool. 72%
of participants in the trial
said the tool fostered amore positive atmosphere,
and we plan to roll it out
to more offices.

⃝Redesign of break rooms
Colleagues enjoy tryingout a novel vending
machine that gives out
drinks for free when two
people swipe theirpasses together.

Integrated Report 2023

58

Human capital management

Global initiatives to cultivate organizational culture
Mizuho HR leaders across all of our locations are working together to improve our HR and organizational culture worldwide.

Global HR Conference
Aim▶To gather discussion topics from offices aroundthe world, consider best practices, and build
collaborative relationships on a global basis

MinJeung（SC）

Milan（BK/SC）

Jessie (SC)Paula (BK/SC）

Examples of discussion topics▶Organizational culture,development, hiring,
governance, engagement, DEI

Michele (BK)

Dates▶February 20 and 21, 2023

Paul（SC）

Michelle (BK）

Jessica (SC/BK）

Participants▶HR leaders from core regions outside Japanand executive officers and employees
involved in the discussion topics in Japan

Group CCuO/CPO Natsumi Akita (FG)

FG: Mizuho Financial Group; BK: Mizuho Bank; SC: Mizuho Securities

What sort of culture should offices aim to develop worldwide?

Discussion topic 1

Participants discussed cultivating an organizational culture where people can act and take on challenges on their own initiative as one way of supporting
individual careers and attracting outstanding talent.
Cultivate an organizational culture where everyone can reach their full potential at work

Improve company reputation

Improve ability to attract talent▶︎Create a working environment where people can be their full selves▶Create frameworks and a workplace culture that supports self-driven endeavors and growth

Participants said

It would be good to expand an employee-centeredconcept like CANADE outside Japan as well.

Remaining challenges for Mizuho’s offices outside Japan
Participants said

There is a culture of not giving enough support toinnovation and of being excessively afraid of failure.

Discussion topic 2

Some job candidates have the impression thatJapanese companies are too demanding.

Wouldn’t it be better to delegate more authority tolocal offices?

Globally unified training and development

Participants confirmed with one another that a global perspective and global connections are critical for developing leaders who can drive Mizuho’s business,and they discussed having HR departments in different locations collaborate on training and development platforms.
Greater participation by colleagues outside of Japan

Increase in growth opportunities

Upskilling▶︎Sharing development programs between offices▶︎Reinforcing framework for global mobility*

Participants said

▶︎Offices should share the same vision for what a good leader is and set up common training programs.
▶Offices should coordinate on open positions.

Lack of global coordination opportunities
Participants said

Exchange between offices has dropped off due to factors like thedecline in global mobility assignments during the pandemic.

* Personnel transfers between offices outside Japan

59

Mizuho Financial Group

Different offices and entities are very much independent of one
another and do not have consistent development policies.

Executive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Data section

AppendixGlobal DEI initiatives
In June 2022, we released Mizuho’s Commitment to Diversity, Equity & Inclusion (DEI) to publicize our basic approach to DEI. Each of our offices is undertaking
its own DEI initiatives. Every November, we hold Mizuho Diversity & Inclusion Month (Mizuho D&I Month). Our offices worldwide spend the month holding
events around a common theme for that year as a way to further move forward DEI across our organization.

Mizuho D&I Month

Aim▶A series of employee-led projects that enable our people to broaden their perspectives and learn more about diversity, in doing so acceleratingtransformation in mindsets and behavior and cultivating an organizational culture capable of sustainably producing new corporate value
Dates▶November 1 to 30 every year
Number of participants▶Approx. 8,000 group-wide
Location

Event

SummaryJapan

Events on the themeof being one’s full
self

Results

25 events provided opportunities to learn about and respect one another’s
individuality. Examples below.

Photo7,246 participants

Dialogue between employees and Group CEO Masahiro Kihara

in totalRound table for CEOs of group companies to talk about individuality
Round table between women who are executive officers of financial institutions in Japan

US

Employee Resource
Group* Happy Hour

Five employee resource groups—supporting women, LGBTQ employees and allies,
employees of African descent, employees of Asian heritage, and employees of
Hispanic heritage—introduced their activities as attendees chatted with one another.

UK

Movember: Month formen’s well-being

The event raised awareness about men’s health with a guest lecture andsessions on work-life balance.

Singapore

Mission to Million
Steps step challenge

Members of many different departments, roles, and nationalities formed
teams and competed for the highest number of steps in this walking event.

Hong Kong

Thank You Campaign

To foster a more inclusive corporate culture, participants wrote thank you
messages to their colleagues and posted them in a common space.

Approx. 200
participants
Approx. 110
participants

443 participants

Approx. 100
participants* Employee resource groups are voluntary activity groups comprised of employees from different areas of the organization and of varying ages. They aim to contribute to the growth of members and the organization by creating
connections around specific topics.

Networking beyond the boundaries of the organization: Alumni
We are expanding our network of former Mizuho employees who are now flourishing in diverse fields outside Mizuho. With discussion events between
employee-led working groups and alumni, we are gaining a new perspective on Mizuho’s strengths and issues that we can utilize in corporate culture
transformation. Such networking is offering an opportunity for both Mizuho and alumni to mutually benefit from each other’s insights. Collaborating in thisway, we are striving to be a part of resolving societal challenges.

Connect outside Mizuho

Banking

Think
tanks

Asset
management

Broader perspective

Mizuho was recognized with the grand prize at the Japan Alumni Awards 2022
due to high appraisal in the following areas.

Trust banking

Networking
Talent and business collaboration
Securities

Connect with current employees

Number of registered alumni

350(% increase year-on-year

FY2021 160 alumni➡FY2022 727 alumni
As of July 2023, over 1,000 alumni)

Alignment withbusiness strategy

Utilization in corporate
culture transformation

Group-wide initiatives withinvolvement from management

Meaningful activities forboth alumni and current employees

Integrated Report 2023

60

Sustainability

With Mizuho’s vision for the world in mind, we areworking with stakeholders to design solutions to
issues and advance sustainability.
Yasuhiko Ushikubo
Senior Executive Officer
Group Chief Sustainability Officer (Group CSuO)
Sustainability encompasses a range of topics, including responses toclimate change, conservation of natural capital, development of a circular
economy, and respect for human rights. These pose challenges we mustovercome to reach a better world. In Mizuho’s view, taking on andovercoming such challenges is an opportunity for Japan to take significant
steps forward.
Our role at Mizuho is to support sustainability transformation from every
possible angle as part of contributing to our clients’ and society’s
development. We are doing this by looking at the medium to long term
and by holding discussions and exploring solutions with clients,
governments, and various other stakeholders.
Sustainability and innovation is one of the business focus areas in our
new medium-term business plan, and we have raised our sustainablefinance target to match the expanding demand for funding of solutions toenvironmental and social issues. Also, through our Transition Equity
Investment Facility, we are supplying more risk capital to new technology.

Going forward, we will continue to develop and provide solutions that fully
leverage the functions and expertise of our group companies, based on the
deep understanding of client needs and challenges that we are gaining
through our client engagement.
It goes without saying that Mizuho must undergo our own sustainability
transformation. Regarding our climate change responses, we haveestablished a Net Zero Transition Plan that takes into account 1) risk
management, 2) the capturing of business opportunities, and 3) transitionin the real economy, and we will pursue efforts to achieve net zero by
2050. Alongside our response to climate change, we are making steadyprogress with our other initiatives on a variety of themes, including
respect for human rights, and environmentally and socially responsible
financing and investment.
With Mizuho’s vision for the world in mind, we will continue to engage indialogue with our stakeholders to design solutions to complex issues andwork towards sustainability together.

Sustainability promotion structure
At Mizuho, our system for handling important sustainability-related matters consists of discussions at the business execution line, e.g., the Sustainability
Promotion Committee and Executive Management Committee, and supervision by the Board of Directors and Risk Committee.
The Group CSuO reports directly to the Group CEO, and plans and promotes group-wide sustainability initiatives. Further, under the Group Chief Risk Officer(Group CRO), we strengthen our system for conducting centralized sustainability-related risk management.
Mizuho Financial Group
Supervision

Board of Directors

Management

Group CEO

Executive Management Committee (chaired by the Group CEO) Deliberate important matters

Risk Committee

Risk Management Committee (chaired by the Group CRO)

Monitor risks

Sustainability Promotion Committee* (chaired by the Group CEO)

Deliberate/coordinate* Meetings held seven times in fiscal 2022.

Group CSuO

Group CRO・Sustainability Planning Dept.

Risk Management Group・Sustainable Business Promotion Dept.

Risk Management Dept.

Sustainability Risk Management OfficeDirections and actions to promote initiatives

Group companies

61

Mizuho Financial Group

Est. Apr 2023

Executive messages / Features

Business strategies for value creation

Mizuho’s value creation process

Governance for value creation

Data section

Appendix

Support for sustainability transformation
At Mizuho we are supporting the sustainability transformation of our clients along two tracks that encompass five perspectives. First, we are creating thefoundations to support the promotion of sustainability through 1) structural transformation of the economy and industry and 2) practical application of newtechnologies. Second, we are scaling up and expanding promotion of sustainability through 3) international partnerships, 4) expansion in Japan, and 5)
establishment of frameworks for providing the necessary funding. To these ends, we are also deepening our insights into industry and the environment anddeveloping our personnel.

Society/Clients

Initiatives necessary to realize sustainability
Expand scale and scope

Build foundation to support promotion(1) Structural transformation of economy and industry(3) International partnerships(2) Practical application of new technologies(4) Expansion in Japan (local regions, middle-market firms, and SMEs)(5) Provide financing through public and private partnerships
Deepen initiatives in each area, such as the structural transformation of industry and practical application of technologies

MizuhoStrengthen
initiatives

Focus on the establishment of a framework to provide transition finance
Build government–academia networks and express opinions/contribute to rule-making

Demonstrate strengths

Environmental/industrial knowledge

Human capital

Client baseInitiatives for sustainable financeIn order to direct further capital toward resolving social issues, we raised our sustainable finance targets. We will proactively provide the funding needed forbusiness structure transformation and the risk capital needed for the practical application of technologies.
Sustainable finance targets / results

Target¥100 trillion

Sustainable finance
Of which, environment- and climate-related finance(Applicable period: FY2019 – FY2030)¥25 trillion¥8.1 trillion¥12 trillion

Applicablefinance areas■ Finance for clients where the intended use of funds isenvironmental and/or social projects■ Financing to support and facilitate ESG/SDG-related
responses, including financing requiring clients to meetcertain related conditions, and consideration andassessment of clients’ responses to ESG/SDG-related areas

Applicable business areas ■ Loans, underwriting, investments, asset management¥21.2 trillion¥13.1 trillion

Our definition of sustainable finance¥50 trillion

League tables¥4.6 trillion
Total for period Total for period
up to FY2021
up to FY2022

FY2030 target(before revision)(after revision)#1

Publicly offered SDG bonds in Japan

Arranged amount of sustainablefinance (loans) worldwide

FY2022(fourth year
in a row)

FY2022#1

Created by Mizuho Financial Group, based on source data from Refinitiv.

Enhancing expertise in sustainability transformation / personnel development
At Mizuho, we are strengthening our specialist expertise and functions (which are two of Mizuho’s strengths), and we are building up insights and knowledge
gained through our initiatives as part of our group’s intellectual capital. Further, with the aim of expanding our sustainability transformation support, we aredeveloping our personnel by enhancing the knowledge of each and every employee.
Specialized knowledge
Environmental / energy sector
consultants
Approx. 130 consultants▼
FY2025 150 consultants

Middle-market firms and SMEs (in-house certified personnel)
Sustainability management
SDG initiative support
experts
finance sales certification
Approx. 1,300 experts▼
Approx. 2,000 employees
FY2025 1,600 experts

Large corporations
Large corporate relationship manager workshop(Industries, technologies, success stories, etc.)
Approx. 600 RMs per session

Outside Japan
Global ESG Champions(Employees driving sustainablebusiness in each region)
Approx. 30 employees

Integrated Report 2023

62

Sustainability

Climate change
Reaching net zero by 2050

In order to achieve a decarbonized society and develop a climate change-resilient society by 2050, we will pursue efforts to limit temperature increase to
1.5°C.
We revised the Net Zero Transition Plan that we formulated in 2022, making it more specific in order to promote a more integrated group climate change
response, from the perspectives of facilitating transition in the real economy, capturing business opportunities, and enhancing risk management.
Road map for net zero by 2050
2021

GHG emission reductions

2023

2024

2025

70% of our electricity
consumption to renewable energy1

Scope 1 and 2
Scope 3

(Emissions associated with financing and investment)

Electric power
Oil and gas

2022

Carbon neutral

Setting interim target for each sector:
FY2023 plan: automotive, maritime transport, steel, and real estate(FY2021 results)

353

138 to 232
kgCO2e/MWh
4.2
gCO2e/MJ

kgCO2e/MWh

6.5

Client scope 1 and 2

gCO2e/MJ

43.2

Client scope 3

Absolute GHG emissions -12% to -29%

MtCO2e1.7

Thermal coal mining

・・・ 2030 ・・・ 2040 ・・・ 2050

Absolute GHG emissions

MtCO2eBusiness opportunities

Net zero

3

OECD countries:
Zero balance

Non-OECD countries:
Zero balance(As of FY2022)¥21.2 trillion
E: ¥8.1 trillion

Sustainable finance2of which, environment- and climate-related finance (E)¥100 trillion
E: ¥50 trillion(Mar 2023)

Risk management
Outstanding credit balance for coal-fired power plants¥235.5 billion

High-risk area exposure in transition risk sectors¥1.6 trillion

-50%4

Zero

Reduction in the medium to long term

1. Scope 2 in Japan. 2. Total accumulated financing amount since FY2019. 3. Compared to FY2019. 4. Compared to FY2019.

Overview of Net Zero Transition Plan (Revised in April 2023)
Foundations

PolicyAims and actions

Environmental Policy (climate change-related initiatives)

Mizuho’s Approach to Achieving Net Zero by 2050

Climate-related governance structure for the transition plan

GovernanceApproval/supervision/reporting
Accountability/review
Transparency

The Board of Directors approves the transition plan and supervises its progress as reported and discussed by the execution line.
The business execution line has the responsibility and authority to execute the transition plan and must regularly review and report the progress made to theBoard of Directors.
Disclosures and reports are regularly made to external stakeholders regarding the details and progress of the transition plan.

Identification of priorities
Materiality
Set as environment and society

Strategy

Top risks
Set as the worsening impact ofclimate change

Scenario analysis
Recognized the importance of clients’transition risk responses and engagement

Newly identified

Next-generation tech
Identified next-generation
technologies related to key sectors

Capturing business opportunities

Risk management

Support transition and structural transformation through financial and non-financial solutions- Provision of transition financing, creation of new businesses, etc.

Continual enhancements to risk management structures and policies- Implementation and continuous review of risk control in carbon-related sectors and theEnvironmental and Social Management Policy for Financing and Investment Activity (ES Policy)

Strengthening engagement
Client engagement

Capability building

Representing views for rule-making

Capturing business opportunities

Raised targets

Sustainable finance/Environment- and climate-related finance targets

Metrics andtargets

Newly identified

Key sectors
Identified key sectors for net zerotransitions

Engagement
Progress in status of clients’ transition risk responses

Strengthen sustainability transformation human capital and internal communication

Risk management
Target to reduce the outstanding exposurefor coal-fired power plants

High-risk area exposure in transition risk
sectors

Capability building

Additional metricSustainability transformation human capital KPIs

Additional metric and target

GHG emission reductions
Targets to reduce our own emissions (Scope 1 and 2)

63

Mizuho Financial Group

Targets to reduce emissions associated with financing and investment (Scope 3)

Executive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Data section

AppendixMizuho recognizes the necessity of cross-sector initiatives, not only in terms of the energy supply side but also the energy demand side, for a transition awayfrom an economic and social structure dependent on fossil fuel. We identify sectors to focus on from the perspective of decarbonization while also promoting
relevant next-generation technologies by taking into account emissions (impact on real economy), opportunities, risks, and the characteristics of our portfolios
and client base.
Key sectors for net-zero transitions / Next-generation technologies related to key sectors
Increase of supply toward 2050 according to the International Energy Agency’s NZE1 scenario

Supply reduction

Supply of energy
Power generation

Energy source

1 Generate low-carbon/carbon-free energy

Material production

Product production

CementConstruction materials

Chemicals

Consumer goods

CCU , biomanufacturing, and chemical recycling

Crude oil

Iron and steel

CoalElectric
powerWind power
Floating offshore wind farms
Nuclear power
Innovative next-generation reactors

Non-ferrous metals

Hydrogen/ammonia
Synthetic fuels/gases
Biomass
SAF4

Real estate
ZEB/ZEH3

Telecommunications
Retail sales
Private cars

Paper pulp

4 Electrification and energy transitions
Land transportation

Manufacturing of freight transport vehicles

Collect, store, and absorb CO2
CCS2/DAC5

Machinery/electronics
Storage/fuel cell batteries

Hydrogen steelmaking

Transportation

Manufacturing industry

Natural gas

3 Save energy/adopt renewable energy

Construction

2

Collect and store CO2
5 throughtechnology

Product use

2 Transition materials and processes and save energy in manufacturing processes

EnergySolar power
Next-generation solar power

Sectors to focus on Blue text : Next-generation technologies

Consumption of energy

Households/offices

Key:

Automobiles

Electric/fuel cell vehicles

Rail transportation

Railroads
Maritime transportation

Ships

Hydrogen/ammonia ships

Aircrafts

Next-generation aircrafts/SAF

4

Air freight

7 Leverage a circular economy (use of recycled materials, sharing, etc.) Waste processing/recycling and Digital transformation

Natural absorption of CO2
6 (forest
conservation)

Sectors to focus on / Approach to next-generation technologies
Electric power sector
Through engagement, we are supporting transition initiatives by confirming client
progress on transition risk responses and ensuring clients and Mizuho have ashared understanding of the business landscape and the challenges they face.
Further, we are publicizing thoughts on green transformation policies in order tosupport Japan’s decarbonization.
Engagement with clients to specifically discuss their future capital
Engagement investment plans and energy mix for achieving net zero by 2050. Expansive
case study discussions about strategies for decarbonization partnerships, renewableenergy investments, and enhancing power grids.

Manufacturing (steel/chemical sectors)
Most of the decarbonization technologies needed for converting materials or fuelused in manufacturing are still in the R&D stage. Mizuho is involved in supporting
broad business strategies for decarbonization, based on our insights into industry
and the environment.
Transportation (automotive, maritime transportation, and aviation sectors)
Mizuho supports our clients in shifting to electrification in the automotive sector
and to carbon-free fuels such as SAF4, from both a finance and non-finance
perspective.
Real estate sector

Oil and gas sector
In the lead up to 2050, demand for oil and gas is expected to fall. It is underthese circumstances that Mizuho will support clients in reducing emissions andin initiatives for business diversification and business structure transformationsuch as the development of new technologies and creation of new businesses.
Continued discussions on and support for clients’ business diversification
Engagement initiatives, including commercializing carbon-free energy (such as hydrogencase study and ammonia), adopting CCUS into oil and gas businesses, and supplying
renewable energy.

Mizuho promotes financing and investment for real estate with high energy
efficiency and low GHG emissions and also initiatives that contribute todecarbonization in the real estate investment market.
Next-generation technologies
We are leveraging Mizuho’s business base and financial and research functions
to promote initiatives for the practical application of next-generation
technologies important from the perspective of decarbonization, such astechnology related to hydrogen, offshore wind farms, CCS, biomass (SAF), andsimilar.

1. Net Zero Emissions by 2050 Scenario 2. CCU/CCS: Carbon dioxide Capture and Utilization/Storage
3. ZEB/ZEH: Net Zero Energy Building/House 4. Sustainable Aviation Fuel 5. Direct Air Capture

Integrated Report 2023

64

Sustainability

Decarbonization support business initiatives
At Mizuho, we are moving forward initiatives to support responses to the important and urgent issue of decarbonization and to capture business opportunities
from five perspectives. We are working with clients to 1) enable structural transformation of industry and business and 2) the practical application oftechnologies. We are then 3) transferring these initiatives to other countries in Asia, as well as 4) specifically to middle-market firms and SMEs in Japan. We
are also 5) providing the necessary transition financing through public and private partnerships.
Engagement-based support for industry and business structure transformation

Perspective❶

We are moving forward client engagement (purposeful and constructive dialogue with clients toward support for sustainability transformation) in order to promote
initiatives toward structural transformation in the economy and industry and practical application of new technologies for realizing a decarbonized society.
Discussions related to business and financial strategies

Approx. 800
companies

Provision of advisory services

Approx. 400
companies

Design and provision of finance solutions

Approx. 500
companies

Approx. 1,700 companies in total(Approx. 1,000 of which were climate related)1
1. Preliminary figures for April 2022 to March 2023.

Transition Equity
Investment Facility

Perspective❷❺

We set an investment budget, naming it the Transition Equity Investment Facility,
and are investing in client-operated projects in transition areas that are in thedevelopment or incubation stages, such as the seed or early stages.
No. of projectinquiries
Approx. 190 projects

No. of funding
arrangements 3 projects

Support and action for the establishmentof technology and business models

Perspective❶❷

We are moving forward with initiatives that aim to establish business models
and technologies necessary for decarbonization,such as those related to hydrogen, offshore windfarms, CCS, and biomass.

・Information-sharing through reports
・Participation in international partnerships

Intention to invest more than ¥50 billion over the next 10 years
Contributions to justtransitions in Asia

Perspective❸

Mizuho is a participant in the GFANZ2 Working Group that supports the Vietnam
Just Energy Transition Partnership (JETP).
2. Glasgow Financial Alliance for Net Zero

Active development of support measures forthe decarbonization of middle-market firms and SMEs

Perspective❹

We are supporting our clients’ initiatives at the issue identification, strategy
formulation and implementation, and disclosure phases by collaborating withexternal partners that provide calculations of GHG emissions and otherconsulting services.

Natural capital initiatives
The conservation and recovery of natural capital is an important issue which is closely related to climate change. As a financial institution, we recognizethat this is a field where we must make efforts from both an opportunity and a risk management perspective. We performed an initial analysis of therelationship between Mizuho’s loan portfolios and natural capital using ENCORE.3 We also support clients in their efforts to preserve and restore natural
capital through a variety of solutions, from consulting to financing.
3. Exploring Natural Capital Opportunities, Risks and Exposure. ENCORE is a tool for better understanding and visualizing the impacts of environmental change on the economy and was jointly
developed by the UNEP-FI, UNEP-WCMC, and Global Canopy.

Key natural capital

Water, biodiversity (habitats and species)

Sectors in our loan portfolio that have large
dependencies and impacts on water and biodiversity

Chemicals, automotive, real estate, general wholesale and retail,and oil and gas (mining) sectors

Water and food65

Mizuho Financial Group

Japan’s first blue bonds and blue sustainability
loans
Capital to be used only in environmentally sustainablefisheries / aquaculture projects

Biodiversity Providing Mizuho Nature Positive Design (whichuses satellite data to analyze and make visible theWater and food relationship between businesses and biodiversity)
Chemicals and other consulting services

Executive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Data section

Appendix

Climate-related risk management initiatives
Materiality assessments of climate risks

We conducted qualitative evaluations on the materiality of climate-related risks in each risk category in order to understand the climate-related risks in an
integrated manner. From these evaluations, we recognized the particular consequences of climate-related risks in the categories of credit risk (deterioration inclient business performance) and market risk (decline in the value of stock holdings). We manage high-consequence risks both qualitatively and quantitatively
as necessary and take appropriate responses.
Risk control in carbon-related sectors

Mizuho controls risks through engagement in sectors found in qualitative evaluations to have high transition risks (carbon-related sectors). With the aim offacilitating the business structure transformation of our clients, we have developed a framework to examine the credibility and transparency of clients’transition strategies. When we can confirm that the client’s transition strategy meets these standards, we provide financing for their business in an even moreproactive manner.
Risk control in carbon-related sectors

Response to high-risk areas▪

Assess risks on two axes and determine clients’ risk classifications
Client sectors

Response to transition risks

▪

High

▪

Oil, gas, and otherpower generation

Metallurgicalcoal
Oil and gas

Criteria for transition strategy confirmation

Support for promoting clients’
responses to transition risks▪

High-risk areas

Resources▪

Coal-fired power
generation

Thermal coal▪

We have established a process and criteria to confirm the credibility and transparency ofclients’ transition strategies, following the Climate Transition Finance Handbook
produced by the International Capital Market Association (ICMA) and other referencematerials.
We confirmed that of ¥1.6 trillion in exposure in high-risk areas, ¥700 billion meets theconfirmation criteria for transition strategies.

Strategies and materiality
Materials

Carbon-related sectors

Electric power

Low

Progress of response to transition risks

We pursue greater engagement with clients to support them in formulating effective
strategies for transition risks, in disclosing their progress, and in embarking at an earlystage on business structure transformation for moving into a lower risk sector.
In order to facilitate a client’s business structure transformation, we provide necessarytransition support after verifying that the client has set valid targets and has planned an
appropriate transition strategy in line with international standards.
We carefully consider whether to continue business with a client in the event that theclient is not willing to address transition risks and has not formulated a transition
strategy even one year after our initial engagement.
In the ways described above, we reduce our exposure over the medium to long term.

Steel

Disclosure
Support for business structuretransformation leading to lower risk
fields and sectors

CementGovernance structure

Transition strategies, such as business strategies contributing
to transitions
Confirmation of the transparency and progress of strategies
and targets
Appropriate governance structure for setting strategies andtargets
Science-based targets aligned with the Paris Agreement

Science-based targets
Outlook for decarbonization
technology development/adoption Outlook for adoption of technologies based on strategies

Other

Client progress on transition risk responses

Through engagement, Mizuho confirms the status of client transition risk responses and supports transition responses in a phased manner. We haveconfirmed that clients in all sectors are making steady progress when compared to the status of their transition risk responses of previous years.
Evaluation
criteria

Low① Has no policy to addresstransition risks and has set notargets② Has a strategy to addresstransition risks and has set
targets
43%

53%③ Has set targets aligned with the Paris
Agreement or is implementing specificinitiatives based on those targets

4%

Power
generation

Mar 31, 2021 0%(coal-fired,oil-fired,gas-fired)

Mar 31, 2022 0%

14%

80%

7%

Mar 31, 2023 0%

10%

83%

7%

Resources(coal mining /oil and gas)

Steel

90%

0%

Mar 31, 2023 0% 6%

94%

0%

¥2.2 trillion Mar 31, 2023 Exposure amount

33%

65%

0%

Mar 31, 2022 0%

32%

66%

1%
1%

72%

27%

¥6.8 trillion Mar 31, 2023 Exposure amount10%

Mar 31, 2022 0%

High

Mar 31, 2021 1%

Mar 31, 2023 0%¥4.4 trillion Mar 31, 2023 Exposure amount④ Has had a third-party evaluation toconfirm they are on track or certain
to achieve those targets

CementMar 31, 2022 0%
Mar 31, 2023 0% 1%

27%

31%
59%

42%
39%

¥0.2 trillion Mar 31, 2023 Exposure amountIntegrated Report 2023

66

Sustainability

Initiatives for respecting human rights
Points for strengthening initiatives (Fiscal 2022 onwards)
At Mizuho, as well as committing to respecting internationally recognized human rights in the Mizuho Code of Conduct, we have established the Human
Rights Policy in order to fulfil our responsibility to respect human rights throughout our global operations and value chain in accordance with the UN Guiding
Principles on Business and Human Rights. We revised our Human Rights Policy in 2022, and we are making efforts to strengthen human rights due diligence infinancing and investment and in procurement and to enhance grievance mechanisms.

Policy revision

Enhancing our human rights
due diligence⃝

May 2022 We revised our Human Rights Policy in order to further enhance our initiatives for respecting human rights⃝

Based on the approach to human rights due diligence clarified in the Human Rights Policy, enhanced each policy andoperational process

Financing andinvestment
Procurement

Enhancement of grievancemechanisms⃝⃝⃝

Strengthened our human rights due diligence with regard to forced labor, child labor, humantrafficking, and business activities in conflict-affected areas
Began initial screenings using externally sourced data⃝⃝

Began risk screening using external data
Added a contractual clause* on respect for human rights to contracts with suppliers

Introduced a grievance mechanism run by a third party in order to enhance measures for providing remedy ininstances of human rights violations* Applies to outsourcing contracts

Promotion structure
Governance• The Sustainability Promotion Committee and Executive Management Committee regularly discuss human rights-related topics, then report to the Board of Directors.
Human rights due diligence• Having identified and assessed the human rights risks within Mizuho’s business activities,
we are working to prevent and mitigate adverse impacts on human rights.
• When a human rights-related issue is identified, we conduct enhanced due diligence, and❶ Identify and assess adverse impacts❷ Prevent or mitigate adverse impacts❹ Communicate with stakeholders❸ Monitor the execution and results of
1 and 2carry out additional client engagement and continuous monitoring.
(Fiscal 2022: 4 cases, of which 3 were outside Japan and 1 was in Japan)

Continually improve various policies and operations

Stakeholder engagement and disclosures• As well as using feedback from stakeholders to enhance our initiatives for respecting human rights, we are also working to enhance our disclosures to ensure transparency.
Main initiatives• In addition to engagement and cooperation with our clients and suppliers, we are also working on human rights awareness training for executive officers and employees.
Our clients・Promoting responsible financing and investment
・Information management
・Financial crime risk management (prevention of money laundering)・Ensuring safety related to use of financial services

Our suppliers

・Promoting responsible
procurement

Our employees

・Providing a safe and supportive work environment
・Ensuring employee well-being
・Preventing discrimination and harassment
・Promoting diversity, equity, and inclusion

Strengthening human rights solution offerings
To provide sustainability-related support services to our clients, we have started a collaboration with LSEG (London Stock
Exchange Group), enabling Mizuho to support our customers' efforts to respect human rights through the introduction of
screening platforms and due diligence reports.

For more details on our initiatives for ensuring respect of human rights, please refer to our Human Rights Report.
https://www.mizuhogroup.com/binaries/content/assets/pdf/mizuhoglobal/sustainability/human-rights/solution/human_rights_report_2023.pdf

67Mizuho Financial GroupExecutive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Data section

Appendix

Responsible financing and investment
Mizuho has established the Environmental and Social Management Policy for Financing and Investment Activity (“ES Policy”), which covers responses toclimate change, conservation of biodiversity, and respect for human rights, to prevent and mitigate adverse impacts of financing and investment on theenvironment and society. In March 2023, we revised the policy to strengthen our responses to climate change.

An overview of responsible financing and investment
Provide financing or support for raising capital

Investment (asset management)

Environmental and Social Management Policy for Financing and Investment Activity (“ES Policy”)

Mizuho Trust & Banking

Established by Mizuho Financial Group

Asset Management One

Implemented at Mizuho Bank, Mizuho Trust & Banking, Mizuho Securities, and Mizuho Americas1

・Established policy,
promoted responsible investment

Adoption and application of the Equator Principles
Mizuho Bank   Financing of large-scale development projects
1. Also applies to each company’s subsidiaries, including those outside of Japan.

Overview of our ES Policy
Across sectors (Prohibitions / Additional due diligence)Specific industrial sectors

Forced labor, child labor, human trafficking

Weapons

Coal-fired power generation

Coal mining (thermal coal)Transition risk sectors

Oil and gas

Large-scale hydropower

Large plantations

Power generation (coal-fired, oil-fired, gas-fired), coal mining,
oil and gas, steel, and cement

Palm oil

Lumber and pulp

Policies (excerpt): Revisions

Underlines indicate revisions made in March 2023

Transition risk
sectors

・Engagement for strengthening initiatives in a phased manner・We check at least once per year on the status of transition risk response.
・We make decisions on whether or not to continue our business with a client in the event that the client is not willing to address transition risk and has not formulated atransition strategy even one year after the initial engagement based on careful consideration.

Coal-fired
power
generation

・We do not provide financing or investment to companies with which we have no current financing or investment transactions if the primary business of these companies is coal-fired power generation.
・We do not provide financing or investment which will be used for new construction of coal-fired power plants or the expansion of existing plants.
・We will continue to support development of innovative, clean, and efficient next-generation technology that will contribute to the energy transition leading to a
decarbonized society.

Coal mining(thermal coal)・We do not provide financing or investment to companies with which we have no current financing or investment transactions if the primary business of these companies
is the mining of thermal coal or associated infrastructure.
・We do not provide financing or investment which will be used for new thermal coal mining projects, expansion of existing mining projects, or associated infrastructure.2

Oil and gas

・We will assess if sufficient measures are being taken by the client to reduce greenhouse gas emissions in cases where new financing and investment will be used foroil and gas extraction.
・When providing financing or investment for oil or gas extraction projects in the Arctic Circle; oil sands, shale oil or shale gas mining projects; or pipeline projects, we
conduct appropriate assessments of environmental and social risks based on operation-specific risks.

2. For cases where financing or investment will be used to obtain the rights to an existing thermal coal mining project, we may provide said financing or investment, based on careful consideration, only when it is vital to the stableenergy supply of a country which has announced a target of net-zero greenhouse gas emissions by 2050.

For the full text of our policies and further details, please see our website.
https://www.mizuhogroup.com/sustainability/business-activities/investment■ Implementation of the ES Policy
Regularengagement

GovernanceWe engage (hold constructive dialogue) with clients in transition risk
sectors and specific industrial sectors at least once a year.

■ Target to reduce the outstanding credit balance forcoal-fired power plants based on the ES Policy¥299.5 billion¥235.5 billion

FY2022   Approx. 1,100 companies
Our business execution and supervisory lines regularly review the ES
Policy, with consideration of its implementation performance and theexternal business landscape. Following this review, we revise the ES
Policy and improve its implementation.

Target:Reduce the FY2019
amount by 50%
Target:Zero

FY2019FY2022

FY2030FY2040Integrated Report 2023

68

Sustainability

Status of Mizuho’s response to TCFD Recommendations (Summary)Underlines indicate initiatives strengthened after being disclosed in the Integrated Report 2022 (published in September 2022)

Governance● ‌We built a supervision and business execution governance framework that centers on the Board of Directors.
Supervision: T‌ he Board of Directors and Risk Committee conduct oversight regarding information that is reported to them and deliberated following discussions at the business execution line.
Business execution: The‌ Sustainability Promotion Committee, Risk Management Committee, and Executive Management Committee regularly deliberate and discuss, then report to the Board of Directors.
The Group CSuO (position established in fiscal 2022) and Group CRO move forward initiatives in each field under the management of the Group CEO.
● ‌The Climate Change Response Taskforce and five working groups have been established to coordinate responses with regard to climate change topics being
addressed jointly by multiple departments within the group.
● ‌Sustainability-related indicators have been adopted for evaluating executive compensation. These indicators include sustainable finance amount, climatechange initiatives, and assessments by ESG rating agencies.

Strategy● T‌ he Net Zero Transition Plan has been revised (established in 2022, revised in April 2023) to promote the group’s climate change responses in a more integrated
manner, from the perspectives of facilitating transitions in the real economy, capturing business opportunities, and enhancing risk management. (Please refer to p. 63)- ‌The key sectors that Mizuho will focus on and engage with, and next-generation technologies related to decarbonization, were identified from theperspective of the transition to net-zero emissions.
● Recognition of opportunities and initiatives to capture opportunities:- ‌We recognize industry and business structure transformation for transitioning to a decarbonized society, investments in practical application of newtechnologies, and the social implementation of those technologies as business opportunities.
- Based on our sustainable business strategy, we actively support clients’ transitions to a decarbonized society and their measures to address climate change.
▪Financing for a decarbonized society: We raised our sustainable finance target over the fiscal 2019 to fiscal 2030 period to ¥100 trillion, of which ¥50
trillion is earmarked for environment- and climate-related finance. (Please refer to p. 62)▪Establishment of foundations and scaling up the initiatives for decarbonization: We have set up the Transition Equity Investment Facility and expanded thetarget scope for economic and industrial structure transformation and practical application of technologies. We disseminate initiatives to middle-market
firms and SMEs in Japan and to other countries in Asia through strategic collaborations with external partners.
▪Capability building: We have strengthened our sustainability transformation human capital and enhanced sustainability-related expertise related toenvironmental technologies (targets to be met by the end of fiscal 2025).
● Risk recognition:- We define climate-related risk as “the risk of tangible and intangible losses as a result of transition risks and physical risks from climate change manifesting or amplifying other risks”.
- We ascertain the entirety of risks associated with climate change by identifying the risks manifested or amplified by transition risks and physical risks and assessing their importance ineach risk category. We recognize credit risk (deterioration in client business performance) and market risk (decline in the value of stock holdings) to be of particularly high consequence.
● Scenario analysis:
Transition risk
Scenario
Analysis method
Targeted sectors
Increase incredit costs

Implications
Future actions

Network of Central Banks and Supervisors for Greening the Financial System (NGFS) Current Policies / Below 2°C / Delayed Transition / Net Zero 2050 (1.5°C) scenarios
We specify parameters for evaluating the impact of risks and opportunities faced by clients in the sector being analyzed. We then analyze the increases in Mizuho’s
credit costs caused by transition risks by formulating an outlook for the impact on financial results, based on how the parameters change under the scenario.
Electric utilities, oil and gas, coal, steel, automobile, maritime transportation, and aviation sectors (worldwide)
Cumulative increase in credit costs through 2050 (difference with Current Policies scenario)
Below 2°C: ¥360 billion
Delayed Transition: ¥1.17 trillion
Net Zero 2050: ¥1.65 trillion
・While credit costs will increase over time in all scenarios and may have a commensurate financial impact on Mizuho in the medium to long term, theimpact on Mizuho's short-term financial soundness will be limited.
・The analysis affirms the importance of early transition by clients and the orderly transition by society as a whole.
・We will pursue in-depth engagement with clients to encourage early business structure transformation.
・We will assist governments in developing and implementing policies for orderly transitions in each country.

Physical risk
Types of risk
Scenario

Acute risks
Chronic risks
NGFS Current Policies and Net Zero 2050 (1.5°C) scenarios
NGFS Current Policies and Net Zero 2050 (1.5°C) scenarios
Damage to assets and business stagnation associated with changes in natural disasters
Impact of asset deterioration and labor force reductions associated with temperature increases
Direct impacts • Amount of damages from damage to group assets, credit costs from damage Direct impacts • Amount of damages from deterioration of group assets, credit costs from
Analysisto real estate collateraldeterioration of real estate collateralmethodIndirect impacts • Credit costs from reduced revenue associated with client businessIndirect impacts • Credit costs from reduced revenue associated with client labor force
stagnation
reductions
Areas: In Japan, Outside Japan
Areas: In Japan, Outside Japan
Analysis scope
Targets: M izuho group and credit clients (Middle-market firms, SMEs, and large corporations) Targets: M izuho group and credit clients (Middle-market firms, SMEs, and large corporations)
Maximum increase if a stress event materializes (Current Policies, 2100, single year)
Increase indamage costs / Cyclones and floods: Approx. ¥90 billion
Temperature fluctuations (as a factor in labor force reductions and increased air
Wildfires: Approx. ¥30 billion
credit costs
conditioning usage): Approx. ¥40 billion
Droughts: Approx. ¥1.5 billion
Although the likelihood of the above disasters occurring simultaneously is low, the analysis confirmed the possibility of additional losses of approximately ¥90 billion
Implications
in a single year if the largest stress event (cyclones and floods) materializes.
Future actions We have recognized the importance of controlling operational risk by improving the group’s asset portfolio.

69

Mizuho Financial GroupExecutive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Data section

Appendix

Risk management● ‌Identification of climate-related risk and its integration into our risk appetite framework and comprehensive risk management.
- We have integrated climate-related risks into our risk appetite framework and our comprehensive risk management framework. We have established the Basic
Policy for Climate-related Risk Management in the interest of establishing an effective management system based on the characteristics of climate-related risks.
● ‌Under our management of top risks, we have positioned the worsening impact of climate change as a top risk. We consider additional risk control measures
for top risks and report on the status of our response to the Board of Directors and other committees.
● Risk control in carbon-related sectors (Please refer to p. 66)- We have established a risk control structure to assess risk in carbon-related sectors (electric utilities, oil and gas, coal, steel, and cement sectors) along twoaxes—the client’s sector and the status of the client’s transition risk responses—in order to identify and monitor high-risk areas.
- We control risk and reduce our exposure over the medium to long term in high-risk areas under the following exposure control policy.
▪We are more thoroughly engaging with clients to support them in formulating effective strategies for transition risks, in disclosing their progress, and inembarking on business structure transformation towards a lower risk sector at an early stage.
▪In order to facilitate a client’s business structure transformation, we provide necessary transition support after verifying that the client has set valid
targets and has planned an appropriate transition strategy in line with international standards. (In fiscal 2022, we established criteria and a process forconfirming transition strategies.)▪We make decisions on whether or not to continue our business with a client in the event that the client is not willing to address transition risk and has notformulated a transition strategy even one year after the initial engagement based on careful consideration.
● ES Policy (Please refer to p. 68)- We have established and implemented the financing and investment policy that specifies businesses and sectors with a particularly high likelihood of leading
to adverse impacts on the environment and society.

Metrics and targets
Transition plan item

Monitored metrics

Targets

Recent results

Scope 1 and 2 emissions

Carbon neutral by FY2030(Carbon neutrality to be maintained thereafter)

Scope 3 (emissions from financing and investment)

Net zero by 2050

(Targets and results disclosed by sector)- Electric power sector

FY2030: 138 to 232 kgCO2e/MWh

FY2021: 353 kgCO2e/MWh- Oil and gas sector

FY2030:
Scope 1 and 2: 4.2 gCO2e/MJ
Scope 3: -12 to -29% (compared to FY2019 levels)

FY2021:
Scope 1 and 2: 6.5 gCO2e/MJ
Scope 3: 43.2 MtCO2e (-29% compared to FY2019
levels)- Coal mining (thermal coal) sector

Absolute emissions
OECD countries : Zero by FY2030
Non-OECD countries: Zero by FY2040

FY2021: 1.7 MtCO2e

Sustainable finance / environment- and climaterelated financeTotal for FY2019 to FY2030: ¥100 trillion (of which¥50 trillion is earmarked for environment andclimate-related finance)

Total for FY2019 to FY2022: ¥21.2 trillion(of which ¥8.1 trillion went to environment andclimate-related finance)

Enhance climaterelated risk
management

Outstanding credit balance for coal-fired power
plantsReduce the FY2019 amount by 50% by FY2030, andachieve an outstanding credit balance of zero by
FY2040March 31, 2023: ¥235.5 billion(down 21.4% from March 31, 2020)

Exposure to high-risk areas in transition risk sectors Reduce over the medium to long term

March 31, 2023: ¥1.6 trillion

Bolster engagement

Status of clients’ transition risk responses

N/A

As of March 31, 2023
Steady progress being made in targeted sectors

Capability building

Sustainability transformation human capital KPIs
- Sustainability management experts- Environmental / energy sector consultants

FY2025- 1,600- 150

As of March 2023
- Approx. 1,300- Approx.130

Net-zero GHG
emissions

Strengthen
decarbonization
businesses

FY2021: 150,987 tCO2e● Other disclosure items aside from the monitored metrics:▪Sector-by-sector credit exposure in line with the TCFD Recommendations▪Financed emissions based on PCAF* methodology(Expanded assets and sectors to be measured)* Partnership for Carbon Accounting Financials.

Please see our TCFD Report (Climate-related Report) 2023 for more details
https://www.mizuhogroup.com/binaries/content/assets/pdf/mizuhoglobal/sustainability/overview/report/tcfd_report_2023.pdf

Integrated Report 2023

70

Digital transformation (DX)

Toward a prosperous future with our customers throughco-creation in the DX domain with a wide variety of partners“Proactively innovate together with our clients for a prosperous andsustainable future.”
We believe that our commitment to DX is the very essence of Mizuho’s
new purpose. Technology evolves and advances like a surging wave,
which is about to change the structure of our society with unimaginable
speed. In these uncertain times, it is essential that we continue to update
ourselves and boldly take on new challenges without fear of failure inorder to deliver growth and prosperity to our customers and society.

Looking back over the past year, many of our initiatives have begun to
produce results, such as the embedded finance solution House Coin, local
government DX, and our work with the metaverse. However, looking at thegroup as a whole, these movements are not yet prevalent. And there arestill many issues to be addressed for us to take full advantage of ourstrengths in the DX area, including the cutting-edge technological insights
and IT implementation capabilities accumulated throughout the Mizuho
group, our broad network with highly skilled start-ups and large
corporates, and our open and multifaceted alliances with Google and othercompanies.

We will accelerate our efforts to further promote DX, including developing
DX personnel and promoting data utilization, and blaze a trail to a futureof mutual prosperity by linking our strengths with those of our diverse
partners in order to address the issues facing our customers and society.

Makoto Umemiya
Member of the Board of Directors
Deputy President & Senior Executive Officer (Representative Executive Officer)
Group Chief Digital Officer (Group CDO)

71

Mizuho Financial GroupExecutive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Data section

AppendixMizuho’s digital transformation strategy
We will leverage our strengths in the DX area to improve convenience for customers, contribute to the business strategies of our partner companies, andcreate new businesses. In addition, as the foundation to support these efforts, we will work to transform work styles and develop DX personnel.
Expanding our DX business

Improving customer experience●Services available without visiting a bank branch●Digital marketing platform to offer solutions at
the right time

●Self-service operation

Our DX foundations

Co-creation with clients and innovation●Creating new value through co-creation withclients●Acceleration of new business in Blue Lab1

●Investment and capital injection in DX and otherareas through Mizuho Innovation Frontier2

Transforming workstyles●Utilizing internal data
●Improving productivity with generative AI

Developing DX personnel●Establishing a mechanism for developing DX
personnel
ーSecure human capital to support business promotionーSupport for employees taking on challenges andimproving job satisfaction

Demonstrate our strengths, such as the high level of expertise possessed by Mizuho Research & Technologies
and Mizuho-DL Financial Technology experts along with our open and multifaceted alliances
1. A company specializing in new business creation established in June 2017 owned by Silicon Valley venture capital firm WiL (largest shareholder), Mizuho Bank, and others.
2. Established in April 2023, as a wholly-owned corporate venture capital of Mizuho Financial Group.

Improving customer experience¥100 billion digital investment in the medium term
We will provide digital services that allow retail customers and corporate clients to complete transactions and administrative matters without visiting abranch. By shifting more basic or administrative services to a smooth and quick self-service and reviewing the opening hours of branches, we aim to turnbranches into spaces for providing in-person consulting to customers.

Leveraging digital marketing platforms to provide financial services tailored to each customer
We will analyze customer information, financial data, andbehavioral data, with the customer’s consent, and use theresults to increase the value of the customer experienceby developing personalized marketing that offers solutions
at the right time and through the right channel.

Web & apps

Contact centers
ATM

In-branch self-service tools

channels, personal consultants, and contact centers on

Tellers

Face-to-faceconsulting

RemotechannelBranchData integrationand sharing

For example, we will build a service that allows
customers to receive timely recommendations from digital

Digital

FAQ & AI chat

Back office

Digital marketing platform
to share information

Corporate businesstopics of interest based on their web/app browsing
history, in-branch conversations, and other interactions.

TimelyCustomers
recommendations

Human
adviceIntegrated Report 2023

72

Digital transformation (DX)

Creating new value through co-creation
Mizuho has designated “Financial DX,” “ESG (sustainability transformation),” and “Tech-oriented” as the three DX focus areas to deliver new value tosociety’s and customers’ pain points.

Financial DX

ESG (sustainability transformation)

Tech-oriented
Businesses incorporating advanced

New businesses utilizing embedded finance,

Businesses that digitally resolve

payments and remittance, and blockchain

environmental, social, and governance issues

ExamplesExamplesExamples⃝Embedded finance solution “House Coin”⃝DX for municipalities⃝Providing settlement functions in the metaverse⃝Electronic gift certificate issued by municipalities⃝Corporate bond with digital benefits “Digitaltechnologies such as the metaverse andnon-fungible tokens (NFTs)―Hachijojima Smart Island Project―Sarabetsu Super Village ProjectEngagement Platform”

Mizuho’s Innovations
New business development organization: Blue Lab Co., Ltd.
We have assigned 30 people dedicated to creating new businesses, and

Growth mindset: Unifying executive officers and employees
Over the past two years, we have run workshops covering the design

are strengthening collaboration with external parties such as companies

thinking and growth mindset necessary for innovation and DX—including

and local governments in addition to our own support for businesses

ideas like “Yes, And...” and “Fail Early, Fail Often”—in collaboration withoriginated by Mizuho, in order to carry out proof of concept (PoC) andSilicon Valley venture capital firm WiL. More than 1,200 employees havepursue open innovation in the financial and non-financial domains.

participated so far. Group CEO Kihara and other executives also
participated, fostering a new culture in which executives and employees
are united in taking on challenges.

MizuhoCompanies

Ideas
Personnel

Local governments

Universities

73

Mizuho Financial GroupPoC

Executive messages / Features

DX
Interview

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Data section

Appendix

A prosperous future starts here. Joint development with Panasonic of “everiwa wallet,” aproprietary payment system that enables secure and reliable payment of EV charging fees

EVs are expected to promote carbon neutrality, but their penetration rate in Japan is still 1.4% (in 2022). In order to increase adoption of EVs, wemust develop charging infrastructure throughout Japan so that EVs can be used reliably by anyone, anywhere.
Mizuho Bank and Panasonic Corporation’s Electric Works Company have jointly developed “everiwa wallet,” a dedicated payment service thatenables contactless payment and receipt of charging fees in the “everiwa Charger Share” EV charging infrastructure sharing platform, based on
the embedded finance solution “House Coin.”

Why we chose “House Coin”
We believe that to build a network that can recharge batteries anywhere in Japan, individuals are just as important ascompanies. The primary reason for adopting “House Coin” is that it can provide a system whereby EV charger hosts—both
individuals and companies—can process payments securely and reliably, and even individuals can receive revenue.
Another deciding factor was that it is based on J-Coin Pay, which has a consistent operational track record with a network ofmore than 900 financial institutions and 1.4 million merchant locations across all prefectures.

Mr. Norimitsu Hozumi
Electric Works Company
Panasonic Corporation

The strengths of “House Coin”
Services can be customized to address clients’ specific concerns, such as by developing functions requested by business clientsand incorporating existing services. This flexibility is a major strength.

Kenta Okamura
Digital Innovation Department
Mizuho BankDXInterview

In the market of prepaid e-money used in a limited domain, which has the potential to grow to ¥7 trillion* in the future, Mizuho
will expand its efforts to provide House Coin services to a wide range of companies and local governments, aiming to become aplatform provider.

* 2025 estimate

The Hachijojima Smart Island Project: Utilizing digital technology to make a more desirable
island for tourists and residents

Hachijo Town faces challenges such as a declining birthrate and aging population, decreasing
tourist numbers, and the need to prepare for natural disasters. The town has entered into aComprehensive Partnership Agreement on Sustainability and DX Promotion with Mizuho Bankand Mizuho Research & Technologies to proceed with the “Smart Island Project,” which aims
to achieve a sustainable community that takes advantage of the unique charm of the island.

Why we chose Mizuho as our partner
Mayor Yamashita: Mizuho has a deep understanding of the town’s social and administrative challenges,
knowledge of digital technology and sustainability, specialist personnel with expertise in DX, finance, andmanagement, and a broad network of business partners.
With Mizuho’s help, we are pursuing DX on the island in a number of ways, including Disaster Prevention
DX, which involves installing IoT sensors to detect signs of landslides and fixed-point observation cameras
to monitor tsunamis, and Tourism DX, which involves utilizing fixed-point observation cameras and AI image
recognition technology for whale watching, and developing a travel app for visitors to Hachijojima.

Yasuhiro Sato
Digital Innovation Department
Mizuho BankMr. Tomonari Yamashita
Mayor of Hachijo Town

Mizuho’s strengths in local government DX
Sato: The digital solutions that Mizuho can offer are not limited to cashless and other financial solutions. Mizuho’s strength lies in its ability to co-create a futuresociety with new technologies through collaboration between the Digital Innovation Department, which specializes in digital technology, group companies such as
Mizuho Research & Technologies, and external partners. We will continue to work together to make the Hachijojima Smart Island Project a model of innovation forother municipalities in Japan.

Integrated Report 2023

74

Business strategies by in-house company/unit
Business portfolio
Mizuho’s business domains include banking, trust banking, securities, asset management, research and consulting, and other services. Ourgroup-wide business is centrally managed under a holding company, and we have established five in-house companies with the aim of better
providing services that meet client needs in a timely manner.
Mizuho strives to allocate corporate resources to the in-house companies optimally in line with group strategy, seeking to achieve sustained,stable growth in the corporate value of the entire Mizuho group through the individual in-house companies’ provision of services for customers.
We maintain disciplined financial management by setting targets for each in-house company (including profitability, ROE, and expense ratios) inline with group-wide financial targets, as well as the business characteristics and operating environment of each in-house company, andmonitoring progress toward these targets during the fiscal year. Furthermore, each in-house company provides optimal solutions to customers
by focusing allocation of corporate resources such as expenses, personnel, and risk-weighted assets (RWA) on domains in which it canleverage its own strengths based on an in-house company strategy linked to the group strategy.
Mizuho pursues measures to improve our entire business portfolio’s resilience to changes in markets and the economic environment by
pursuing capital efficiency and growth, expanding our stable revenue base and diversifying our revenue sources, as well as improving the
distribution and complementary effects of revenue within in-house companies, or among business domains spanning multiple in-housecompanies. In fiscal 2022, rising interest rates and weak stock prices caused deterioration in revenues from bond investments in our market
divisions and a downturn in asset formation-related services for individual customers. However, deposit and loan services for corporate clientsin particular achieved revenue growth, while the sales and trading business targeting institutional investors also delivered a robust
performance, enabling us to verify our resilience to changes in the business environment.
Under the new medium-term business plan launched in fiscal 2023, we will aim to achieve our financial targets in terms of consolidated ROE
and consolidated net business profits by making constant efforts to optimize our portfolio in line with the characteristics of individual in-housecompanies, thereby establishing a more resilient business portfolio possessing a combination of growth potential, efficiency, and stability.

Net Income ROE●Retail & Business Banking Company (RBC) ●Corporate & Investment Banking Company (CIBC)●Global Corporate & Investment Banking Company (GCIBC) ●Global Markets Company (GMC)●Asset Management Company (AMC)

Net Income ROE● : FY2025 target: FY2022 results
Size of 〇 : Net Income

15%

CIBC

GCIBC

10%

AMC
7.5%

RBC
4.9%

5%

3.5%

2.0%

7.5%
4.6%

2.0% GMC 3,2200%Internal risk capital

75

Mizuho Financial Group

RBC

10.4%

7.9%

8.8%

Executive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation（

Historical data by in-house company■■ Gross Profits

Retail & BusinessBanking Company
(RBC)

729.1
97.7

717.6

706.6

95.8

90.7

86.1

85.7

FY2018FY2019FY2020■■ Net Business Profits

449.5

80.4

FY2021

FY2022

271.0

298.2

312.9

49.7

44.5

41.2

39.7

FY2018FY2019FY2020

FY2021

FY2022■■ Net Business Profits

449.7

488.7

170.6

188.7

218.7

FY2018FY2019FY2020■■ Net Business Profits

197.8

192.4

FY2018■■ Gross Profits

54.1

FY2025 target

276.3

337.6

52.6

49.3

FY2021

FY2022

332.0

380.0

FY2023 plan

FY2025 target

154.0+¥120.0 billion
compared to FY2022

FY2023 plan

FY2025 target

381.1
314.2

265.7

60.4
150.2

FY2019FY2020■■ Net Business Profits

80.7
59.9

FY2021

FY2022

Expense ratio (%)

59.1

50.4

54.8

56.3
62.2

FY2023 plan

360.0

480.2

44.5

57.6

321.0

Expense ratio (%)

50.7

52.9

FY2025 target

627.2

553.0

57.6

104.9

FY2023 plan

140.0

Expense ratio (%)

60.5

403.1

88.0

508.7

500.8

481.8

46.0

435.0
62.1

）

Expense ratio (%)

228.1

-95

Asset Management
Company (AMC)

103.4

249.0

■■ Gross Profits

Global Markets
Company (GMC)

701.6

68.3

■■ Gross Profits

Global Corporate &Investment Banking
Company (GCIBC)(group aggregate, management accounting, rounded figures) (¥ billion)
Past years’ figures are recalculated based on the new accounting rules for FY2023.
Net Business Profits include Net Gains (Losses) related to ETFs and Others.

698.2

38.0

460.1

Appendix

Expense ratio (%)

31.8■■ Gross Profits

Corporate &Investment Banking
Company (CIBC)■■ Net Business Profits

Data section

65.0

16.0

13.2

10.9

FY2018FY2019FY202019.9

FY202163.9
12.8
FY202214.0
FY2023 plan

20.0

FY2025 target
Integrated Report 2023

76

Business strategies by in-house company/unit

Retail & Business Banking Company
We will address challenges arising from the social and business environments
surrounding our customers around the world, such as the new era of longer
lifespans, sustainability transformation, digital transformation, and asset andbusiness succession, by efficiently allocating corporate resources andundertaking growth investment to sustainably grow our customer base as we
endeavor to shift to a phase of business growth and expansion. This will enable
us to contribute to improved personal well-being for individual customers andKazutoshi Isogai

Senior Executive Officer
Head of Retail & Business Banking Company

support the growth strategies and business transformation of corporate clients.

Business overview
The company is in charge of the customer segments of individual customers, SMEs, and middle-market firms*Materiality areas:

Declining birthrate and aging population,plus good health and lengthening lifespans

Industry development and innovation

Sound economic growth

Environment and society

Strengths

 onsulting and solutions that seamlessly leverage group-wide collaboration between banking, trust banking, securities
Cand other business areas for both individual customers and corporate clients
Capability to respond to customer needs and originate business, strengthened under the new branch network
dedicated respectively to individual customers and corporate clients
Broad network with startups/innovative companies, IT platform providers, and IT players
Focuses

Optimization

 e will build up a comprehensive asset consulting frameworkW
to provide robust support for individual customers’ asset
formation and management. In addition, we will provide
solutions and risk capital to middle market firms, SMEs, andstartups/innovative companies for which business succession
or growth is expected.

 e will simultaneously upgrade the quality of customer services
Wand boost operational efficiency by improving digital channels,
which will enable us to improve customer experience by shifting
human resources to provision of consulting and solutions.

Measures to achieve medium-term business plan
We will improve customer experience by providing highly convenient digital services enabling various transactions to be completed without
visiting our locations, while at the same also bolstering our capacity to serve customers either at branches or remotely by placing importanceon customer touchpoints. For individual customers, we will meet their asset formation and management needs by means of highly convenientservice channels and comprehensive asset consulting; for corporate clients we will provide high added-value solutions leveraging Mizuho’sknow-how, insight, and networks.

Balance of individual assets under management (¥ trillion)
+25％

77

26

25

25

FY2020

FY2021

FY2022

Mizuho Financial GroupFY2025plan

Revenues from Corporate Solutions (¥ billion)
+20％
106.6

113.8

117.7

FY2020

FY2021

FY2022

FY2025planExecutive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Data section

Appendix

Corporate & Investment Banking Company
In order to further strengthen our ability to meet the increasingly diverse andcomplex needs of our clients, we established the new Corporate & Investment
Banking Company by integrating the Corporate & Institutional Company with
the investment banking functions of the Global Products Unit. Increasing
public interest in sustainability and other social issues is accelerating various
structural shifts. By resolving social issues and supporting clients to enhancetheir corporate value, we will contribute to the sustainable growth andMasayuki Sugawara

prosperity of industry, the economy, and society as a whole.

Senior Executive Officer
Head of Corporate & Investment Banking Company

Business overview
As the in-house company in charge of large corporations, financial institutions, and public-sector entities in Japan, thecompany provides products (M&A, real estate, etc.) on a group-wide basis.
*Materiality areas: Industry development and innovation

Sound economic growth

Environment and society

Strengths

Capacity to co-create value with clients through sector coverage structure, aligned among banking, trust banking, andsecurities
Merged organization of sector coverage and product line to enhance capability to connect various functions within the
Mizuho group and provide both financial and non-financial solutions
Ability to provide sound risk capital for co-creating value with clients
Focuses

OptimizationI n terms of sustainability including decarbonization, we aim tocreate businesses in a wide range of domains beyond financeby engaging deeply with clients and taking action to resolve
their issues, as well as the issues affecting society and industry.

 e will establish an appropriate balance of risk & return byW
reviewing our business portfolio. With regard to crossshareholdings, we are continuing their steady reduction andeffectively reallocating capital to highly profitable productareas, mezzanine financing, and the like.

Measures to achieve medium-term business plan
We will bolster our role as a partner that co-creates value with clients by accurately identifying the major trends of structural change in society
and industry and providing a diverse range of financial and non-financial solutions to facilitate clients’ sustainable growth and prosperity. By
integrating coverage and products following the establishment of the new in-house company, we will ensure “market-in” approaches to clients(i.e., approaches informed by client needs), thereby enhancing our ability to provide solutions.

League tables

Strategic investment balance5
FY2019FY2020

FY2021

FY2022

ECM1

#4

#4

#4

#4

DCM2

#1

#1

#1

#1

#3

#15

#5

#5

#1

#1

#1

#1

M&A3
SDG bonds

4

1. Equity underwriting amount worldwide, bookrunner basis. Source: Refinitiv
2. Including straight bonds, investment corporation bonds, zaito institution bonds, municipal bonds (leadmanager method only), samurai bonds, and preferred securities and excluding bonds issued by Mizuho.
Source: Refinitiv.
3. Deals in which Japanese companies were publicly involved. Excluding real estate. Source: Refinitiv
4. Source: Refinitiv

136

132

135

FY2020

FY2021

FY20221006

FY2019FY2025plan

5. Strategic Investment. Hybrid financing, Equity & Mezzanine, etc.
6. With FY2019 results as 100

Integrated Report 2023

78

Business strategies by in-house company/unit

Global Corporate & Investment Banking Company
As a strategic partner supporting our clients’ global
businesses, we will leverage our firm presence in the US
capital markets and our extensive network in Asian
economic zones to provide comprehensive financial
solutions to clients in each region. In addition, we will use
engagement as a means of supporting their businessdevelopment and transition to decarbonization, while also

Hidekatsu Take

helping to resolve social issues.

Senior Executive Officer
Head of Global Corporate & Investment
Banking Company

Business overview
Providing solutions on a unified group basis to clients including both Japanese companies operating outside Japan and
non-Japanese companies.
*Materiality areas: Industry development and innovation

Sound economic growth

Environment and society

Strengths

Corporate & Investment Banking (CIB) business model that offers both balance sheet and capital markets / investmentbanking functions such as DCM, ECM, and M&A, and a firm presence in US capital markets
Extensive international network centered on Asia where the economy is growing
Robust client base and strong loan portfolio
Focuses

OptimizationT he growth drivers in our business outside Japan are the US,
which has the largest fee pool, and Asia, which has strong
economic fundamentals. We are working toward further growthby prioritizing allocation of corporate resources in these regions.

 e will consolidate administrative operations outside JapanW
into Mizuho Global Services India and deploy best practices anddigital transformation to standardize work processes. At thesame time, we will strategically reallocate corporate resources
throughout each region, replacing underperforming assets withhighly profitable assets.

Measures to achieve medium-term business plan
We will take bold steps to improve asset profitability through further enhancement of CIB capabilities in the US, and through expanding noninterest income and revising our portfolio by extending the CIB model to Asia-Pacific and EMEA. We will also take steps to enhance ourframework of internal controls and business expansion to ensure its alignment with increasingly demanding supervisory perspectives andtightened regulations. Towards further business growth and stable operations, we will enhance and diversify our human capital portfolio by
employing professional human resources well-acquainted with each local market and developing the core personnel who can work
internationally in the future.
League tables

Transaction banking+32％(Asia-Pacific ($ million))
FY2019Americas DCM

FY2020

FY2021

FY2022

1

#9

#9

#8

excl. US banks

#3

#3

#2

#2

Share

3.3%

3.4%

3.5%

4.2%

#25

#17

#21

#16

Americas Non-IG
LCM/DCM2
excl. US banks

#11

#8

#10

#6

Share

1.0%

1.4%

1.4%

1.7%

1. Bonds issued by investment grade corporations, fee basis. Source: Dealogic.
2. Bonds and loans issued by non-investment grade corporations, fee basis. Source: Dealogic.

79#8Mizuho Financial Group

874
483

527

FY2020

FY2021

FY2022

FY2025planExecutive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Global Markets Company

Governance for value creation

Data section

Appendix

Regarding our sales and trading business, we will enhance
our ability to respond to diversifying client needs by further
acceleration of integrated banking and securities
operations in each region, and boost our capacity toprovide market solutions, and to pursue digitalization.
With respect to our banking operations, under the situationin which highly uncertain market conditions are expected
to continue, we will realize stable earnings by controlling

Daishi Sasaki

Kenya Koshimizu

Senior Executive Officer
Co–Head of Global Markets Company

Senior Executive Officer
Co–Head of Global Markets Company

risks through flexible operations by early warning signals
management and close market analyses.

Business overview
The company engages in sales and trading (S&T) business offering market products, and banking operations comprisingasset and liability management (ALM) and investment.
*Materiality areas: Sound economic growth

Strengths

S&T business integrated across banking and securities, aligned to regional characteristics in the US, EMEA, Asia
(ex-Japan) and Japan respectively
Stable S&T business underpinned by various clients under the Corporate & Investment Banking (CIB) business model
Global ALM management and flexible portfolio management by capturing early warning signals, etc. in our banking
operations
FocusesI n our S&T business, we will focus on expanding product lines that contribute to growth of the CIB business model around the world, andensure earnings stability through business diversification and transaction flows. In our banking operations, we will improve our Japaneseyen- and foreign currency-based ALM to ensure it is responsive to changes in the market environment and focus on flexible portfolio
management integrating investment and ALM.

Measures to achieve medium-term business plan
We will focus on expanding equities business in Japan and the US, and derivatives business in Asia (ex-Japan), while in the EMEA region wewill focus on products consistent with our CIB business model. This will enable us to further accelerate integrated banking and securities
operations within the S&T business in each region. To manage increasing foreign-currency assets on our balance sheet, we will increase thestability of our capacity to procure foreign currency funding, including by effectively using yen-dominated assets. In investment product salesin Japan, we will aim to increase earning opportunities from corporate clients by furthering acceleration of integrated banking and securities
operations through reinforcement of our capacity to provide financial product intermediary services.
Ex-Japan S&T Revenues (¥ billion)

Medium- to long-term foreign currency funding amounts ($ billion, %)+15％■■ Medium- to long-term foreign currency funding amounts
Medium- to long-term funding ratio

228.6
153.1

FY2020

29.7

141.3

FY202181.0

FY2022

FY2025plan

FY2020

29.8

30.8

85.1

87.7

FY2021

FY2022

FY2025plan

Integrated Report 2023

80

Business strategies by in-house company/unit

Asset Management Company
To cultivate asset formation and management that meets customers’ needs, wewill further strengthen our investment capabilities through selection andconcentration attuned to the demands of the times, while enhancing our
product lineup and provision of solutions. We will aim to grow the asset
management business further by responding as part of a unified group,
including long-term asset formation for individual customers that benefits fromthe support of the tax system for Nippon Individual Savings Accounts (NISAs)

Noriyuki Sato

Senior Executive Officer
Head of Asset Management Company

and individual-type defined contribution pension plans (iDeCo), and investment
diversification needs including alternative investments for institutional investors.

Business overview
The company acts as part of a unified group to provide investment products and solutions that match the asset
management needs of a wide range of customers, from individuals to institutional investors.
*Materiality areas:

Declining birthrate and aging population,plus good health and lengthening lifespansSound economic growth

Environment and society

Strengths

Asset Management One, our in-house asset management arm, characterized by strong investment capabilities andadvanced sustainability initiatives
Distribution network in and outside Mizuho group and robust support platform
Providing solutions to institutional investors as a unified group
Wide-ranging contact points with corporate clients through corporate pension scheme management and theiremployees as potential individual customers
FocusesExpand asset formation and asset management services for individual investors, and enhance investment performancePromote asset formation for individual investors through the pension businessBolster investment solutions and alternative investments capabilities that match the needs of institutional investors

Measures to achieve medium-term business plan
For individual customers, in addition to enhancing our investment capabilities, we will expand our product portfolio, including strategic products
for the new NISA, through appropriate collaboration with our internal distribution network, ensuring our fiduciary duties. We will also support
human capital enhancement for corporate clients and promote asset formation for individual customers through the pension business.
Furthermore, we will develop and provide investment solutions addressing the needs of pension funds and other institutional investors, andstrengthen our alternative investment capabilities.
Publicly offered investment trust assets under management balance* (¥ trillion)+40％*Balance of publicly offered equity investment trusts excluding ETFs.

9.0

8.6

DB/DC pension assets under management balance* (¥ trillion)

+60％

+15％

9.0

8.8

Number of individuals enrolled in iDeCo (thousand)*Total balance of assets in defined benefit (DB) and defined contribution (DC) pensions(corporate and individual-type DC pensions)

9.4

9.4
224

FY202081

FY2021

Mizuho Financial GroupFY2022

FY2025plan

FY2020

FY2021

FY2022

FY2025plan

FY2020269

FY2021314

FY2022

FY2025planExecutive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Data section

AppendixGlobal Transaction Banking Unit
The Global Transaction Banking Unit was set up as a dedicated unit to respondprecisely to needs in relation to transaction banking business, which are
increasing in sophistication and complexity globally. We aim to establish a new,highly secure and convenient business domain in which we take advantage ofadvancing digitalization while continuing to provide reliable settlement services.

Tsutomu Yamamoto

Senior Executive Officer
Head of Global Transaction Banking Unit

Business overview
The Global Transaction Banking Unit provides a range of solutions in the transaction banking area including settlement, cash
management, securities management, and trade finance for corporate clients in Japan and elsewhere around the world.
Strengths

Providing financial products in a client-oriented and multi-layered way, and offering sophisticated product expertise
Ability to provide solutions on a global basis, by leveraging networks both in Japan and around the world
Recognized as top rated bank in custody and trade finance business both in the Japanese and broader Asian markets

Measures to achieve medium-term business plan
We will constantly work to maintain and reinforce our settlement infrastructure and platform in order to provide stable settlement services as aform of social infrastructure. In addition, we will endeavor to create next-generation business opportunities by offering solutions that address
global changes in trade flows, supply chains, and regulations, and also responding flexibly to trends including new settlement technologies orsettlement service providers.

Research & Consulting Unit
Mizuho will differentiate itself by setting its sights one step ahead as it
endeavors to solve the issues of its clients and society. To that end, we will
deliver distinctive research content and provide highly specialized consulting
services in response to rising social, economic, and industrial uncertainty andthe changing needs of our clients.

Yasuhiko Ushikubo
Senior Executive Officer
Head of Research & Consulting Unit

Business overview
The Research & Consulting Unit leverages its knowledge of industry, corporations, economics, and financial markets and its
expertise in business strategy, sustainability, digital transformation, and similar fields to support all the in-house companies.
Strengths

High-quality research functions backed by deep knowledge of industry, corporations, economics, and financial markets
Consulting functions exercising high levels of expertise in business strategy, sustainability, digital transformation, and similar
Combining various areas of expertise and coordinating financial functions within the group to enable high-quality, innovative value creation

Measures to achieve medium-term business plan
● Deliver distinctive research content addressing specific themes or cross-sector businesses, focused either one step ahead or on themedium- to long term

● Strengthen consulting capabilities centering on the business strategy, sustainability, and digital transformation, including combining insights

across multiple areas and collaborating with partners inside and outside Mizuho.

● Sow the seeds for new businesses by strengthening initiatives that utilize external knowledge and other resources to address new fields
Integrated Report 2023

82

Corporate governance

Basic approach
Mizuho has established a corporate governance system centered on the Board of Directors. While conducting management that
contributes to the creation of value for our diverse stakeholders, we fulfill our social roles and mission by enhancing our corporate value
through sustainable and stable corporate growth and contributing to the development of economies and industries in Japan and aroundthe world and to the prosperity of society as a whole. Going forward, we will continue working to further enhance our corporate
governance.

Corporate governance system
Points concerning Mizuho Financial Group’s corporate governance system
Mizuho Financial Group (holding company) has adopted a Company with Three Committees model of corporate governance based on its belief that it is the mosteffective system to realize its basic policy concerning the following corporate governance system. By having various committees comprised mainly of outside
directors, Mizuho Financial Group is building a corporate governance system that adequately utilizes the points of view of personnel outside of the Company.

Ensuring the separationof supervision andmanagement

Secure the effectiveness of corporate governance by ensuring the separation of supervision andmanagement and making supervision of the management, such as the execution of duties by executive
officers, the primary focus of the Board of Directors

Delegating decisions on
business execution to the
executive officers

Make it possible for the management to make swift and flexible decisions and realize expeditious
corporate management by enabling the Board of Directors to delegate decisions regarding businessexecution to the executive officers

Securing independenceof management
supervision

Utilize committees and other forms of oversight, comprised mainly of outside directors who are not members of the
management of Mizuho, and secure transparency and fairness in decision-making processes regarding the appointment
and dismissal of, and compensation for, the management as well as ensure effective supervision of the management

Adopting global
standards

At the holding company level, actively adopting operations and global best practices regarding
corporate governanceCompliance with Japan’s Corporate Governance Code
Our Corporate Governance Guidelines set out the fundamental perspectives regarding corporate governance at Mizuho, and the framework of thecorporate governance system, including the roles, composition, and governing policies regarding the Board of Directors, executive officers, Nominating
Committee, Compensation Committee, and Audit Committee for Mizuho Financial Group (holding company).
In addition, the Corporate Governance Report, which sets out the status of the corporate governance system of the group, is submitted to the Tokyo
Stock Exchange (TSE) and posted on the websites of the TSE and Mizuho Financial Group.
Corporate Governance Guidelines
https://www.mizuhogroup.com/binaries/content/assets/pdf/mizuhoglobal/who-we-are/governance/governance/g_report/g_guideline-202307.pdf
Corporate Governance Reporthttps://www.mizuhogroup.com/binaries/content/assets/pdf/mizuhoglobal/who-we-are/governance/governance/g_report/g_report.pdf

Overview of Independence Standards
For Mizuho Financial Group’s Overview of Independence Standards of Outside Directors, please refer to our website:
https://www.mizuhogroup.com/binaries/content/assets/pdf/mizuhoglobal/who-we-are/governance/governance/g_report/o_director.pdf

83

Mizuho Financial GroupExecutive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Data section

Appendix

DiagramMizuho Financial Group

General Meeting of Shareholders
Determines the content of proposals regarding the appointment and dismissal of directors

Appointment of directors

Supervision

Board of Directors
Outside directors:

Determines
compensation

Chairperson

Internal non-executive
directors:
Audits theexecutionof duties

Internal directors who
concurrently serve as
executive officers:

Nominating
Committee* In principle, all members to
be outside directors.

Chairperson

Compensation
Committee
Chairperson* In principle, all members to
be outside directors.

Audit
Committee* Majority of members
to be outside directors.

Chairperson

Risk Committee
Human Resources Review Meeting* The Chairperson shall, in principle, be an outside director.
* Non-executive directors shall comprise a majority of the directors.

System Failure Response
Evaluation Committee

Outside Director Session●Appoints and dismisses executive officers●Delegates decisions on business execution●Supervises the execution of duties

Management

Executive officers

Audits the executionof duties by executive
officers

Determines thecompensation for
executive officers

President & Group CEO
Makes decisions on business execution, based on delegation from the Board of Directors, and implements business execution

Mizuho Bank, Mizuho Trust & Banking,and Mizuho Securities

General Meeting of Shareholders
Board of Directors

Collaborate

Audit and Supervisory Committee

Composition and skills of the Board of Directors
Roles and composition of the Board of Directors
Mizuho Financial Group believes that, in addition to conducting strategic direction within the group, it is important for our Board of Directors to fulfill the role ofappropriately supervising the implementation of governance functions across the group and for subsidiaries, etc. under group management. As such, our Boardof Directors is composed of an appropriate balance of internal directors who have insight into the group’s business model, and outside directors who possess
complex and diverse perspectives that we may not have within the group.
Percentage of outside directors

Percentage of outside and non-executive directors

Percentage of female directors

50.0%

57.1%

66.7%

71.4%

8.3%

14.3%

6 / 128 / 148 / 1210 / 141 / 122 / 14FY2023

FY2022

FY2023

FY2022

directors

directors

FY2022

directors

after shareholders meeting

Note: Average tenure of directors:

FY2022

2.8 years ▶

directors

directors

after shareholders meeting
FY2023

2.6 years / Average age:

FY202264.7 ▶

directors

FY2023after shareholders meeting

FY202364.8

Approach to appointment and dismissal of directors
Mizuho Financial Group’s Nominating Committee selects director candidates considering the criteria for appointing directors prescribed in the Corporate
Governance Guidelines and the skills that the Board of Directors as a whole should possess.
The Nominating Committee also may submit as an agenda item for deliberation at the General Meeting of Shareholders a proposal to dismiss directors if there
are objective and reasonable grounds for determining that they have become unqualified in respect of the requirements and it is deemed that they are no longer
capable of being entrusted with the performance of director duties.
Integrated Report 2023

84

Corporate governance

Skills that the Board of Directors should possess as a whole
In light of the recent revision of the group’s Corporate Identity and the review and formulation of a new medium-term business plan that takes into account thedirection for growth we will pursue over the long term, Mizuho Financial Group has clarified the areas in which the Board of Directors as a whole should
possess specific skills in order to ensure speedy corporate management and appropriate supervisory functions toward realization of the plan. Specifically, thegroup has selected the eight skill areas of “Management,” “Risk Management / Internal Control,” “Financial Control / Accounting,” “Finance,” “Human
Resources / Organization,” “IT / Digital,” “Sustainability,” and “Global.”
Basic approach to selection of skills

Enhancing the competitivenessof Japanese companies

Global Corporate & Investment
Banking (CIB) business model

Sustainability and innovation
Corporate culture transformation
Digital transformation

Human capital enhancement

Enhancing our corporate foundations

IT reforms

Maintenance of stable business operations

Financial Control/ Accounting

Basic elements
Basic elements based on
Mizuho’s business strategies required for supervision

Improving customer experience

IT / Digital

Business focus areas
Support for the doubling ofasset-based income

Human Resources Risk Management/ Organization/ Internal Control

Proactively innovate together with our clientsfor a prosperous and sustainable future.

GlobalMizuho’s Purpose

Personal well-being
Sustainable society and economy

Management

Mizuho’s vision for the world

Finance

The aim of the group

Areas in which the Board of Directors asa whole should possess specific skills

Sustainability

Characteristics of the Mizuho Financial Group Board of Directors- The Board of Directors is dedicated to supervising management to the maximum extent possible(i.e., separation of supervision and management)

Main reasons for selecting each skill and approach to main experience and knowledge deemed necessary

85

Management

We believe that the experience of management, especially as a member in executive management in a large corporation and othercompanies, is necessary to fulfill the supervisory function of the group.

Risk Management/ Internal Control

We believe that professional experience in and knowledge of risk governance and internal control in corporations, auditing firms,
and/or in the legal profession are necessary for supervision to ensure fair corporate activities and sound business operations bymanagement.

Financial Control/ Accounting

We believe that experience as a CFO or person with similar responsibility in corporations and professional experience and knowledge
as a certified public accountant or as a member of a similar profession are necessary to oversee management, which aims to build asound financial base, pursue capital efficiency and realize growth strategies.

FinanceWe believe that knowledge of the financial business, backed by, among others, business experience at financial institutions, isnecessary to fulfill the supervisory function of the group, which has banking, trust, and securities businesses at its core.

Human Resources/ Organization

Mizuho considers “human resources” to be one of the key corporate resources that will support future growth, and we believe thatexperience in and knowledge of, among others, the development of executive managers, human resources and organizations arenecessary from the perspective of appropriately overseeing efforts by management to transform human capital and corporate culture.

IT / Digital

We believe that experience and knowledge in, among others, technological and business development in the IT and digital fields arenecessary to fulfill the group's supervisory function, as they are the foundation for customers to use Mizuho’s services with peace ofmind and are also key to our future competitiveness.

Sustainability

Mizuho aims to achieve its own growth through facing social issues and contributing to their resolution, and we believe thatexperience in and knowledge of environmental and other sustainability-related operations are necessary to fulfill the supervisory
function of the group.

GlobalAs the Mizuho group is expanding its business globally and aims to contribute increasingly to the sustainable growth of the world, we
believe that experience in, among others, management of global corporations and/or corporations outside Japan is necessary to fulfill
the supervisory function of the group.

Mizuho Financial GroupExecutive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Data section

Appendix

Skill Matrix of the Board of Directors
The table below lists the particular core skill areas that each director possesses in relation to the skills that the Board of Directors as a whole should possess,
and with which Mizuho Financial Group believes the Board of Directors as a whole has the necessary skills. We also believe that each committee is equippedwith the necessary skills based on their respective roles, including securing the knowledge of outside committee members at the meetings of voluntary

Yoshimitsu Kobayashi

Human Resources
Review Meeting
System Failure Response
Evaluation Committee

Risk Committee2☆

●●

Ryoji Sato
Takashi Tsukioka●

Kotaro Ohno●

Hiromichi Shinohara●

Masami Yamamoto●

Izumi Kobayashi1●

Yumiko Noda

Audit Committee

Compensation Committee

Committees (☆ Chairperson of the committee)

Nominating Committee

GlobalSustainability

IT / Digital

Human Resources / Organization

FinanceFinancial Control / Accounting

Name

Risk Management /Internal Control

Management

committees.

●

●

☆

●

●

●

●

●

●

●

●
☆

●
●

●

●

☆

●

Seiji Imai
Hisaaki Hirama
Masahiro Kihara●☆
☆

Makoto Umemiya
Motonori Wakabayashi
Nobuhiro Kaminoyama
Notes
1: Chairperson of the Board of Directors
2: The following two outside experts serve on the committee:
Rintaro Tamaki (President, Japan Center for International Finance)
Hiroshi Naka (Professor, the University of Tokyo Institute for Future Initiatives)

Integrated Report 2023

86

Board of Directors
Outside Directors

Outside
Yoshimitsu Kobayashi Director

OutsideDirector

Ryoji Sato

OutsideDirector

Takashi Tsukioka

Chairperson of the Nominating Committee

Member of the Audit Committee

Member of the Nominating Committee

Member of the Human Resources Review Meeting

Member of the System Failure Response Evaluation Committee

Member of the Human Resources Review Meeting

Brief personal record (major concurrent office indicated in bold)

Brief personal record (major concurrent office indicated in bold)

Brief personal record (major concurrent office indicated in bold)

Dec 1974 Joined Mitsubishi Chemical Industries (current Mitsubishi
Chemical)Apr 2005 Managing Executive Officer of Mitsubishi Chemical
Apr 2007 Representative Director, Member of the Board, Presidentof Mitsubishi Chemical Holdings1
Representative Director, Member of the Board, President
and Chief Executive Officer, of Mitsubishi ChemicalJun 2012 Outside Director of Tokyo Electric Power (until Mar 2015)
Apr 2015 Chairman, Japan Association of Corporate Executives (until
Apr 2019)
Jun 2015 Member of the Board, Chairperson of Mitsubishi Chemical
Holdings1
Sep 2015 Outside Director of Toshiba (until Jul 2020)
Jun 2018 Chairman of Board of Directors, Outside Director of
Toshiba (until Jul 2020)
Jun 2020 Member of the Board of Directors (Outside Director) of FG(current)
Jun 2021 Member of the Board of Mitsubishi Chemical Holdings1(until Jun 2022)
Chairman of the Board of Directors of Tokyo ElectricPower Company Holdings (current)

Apr 1969 Joined Nikko Securities (current SMBC Nikko Securities)
Oct 1971 Joined Tohmatsu Awoki & Co.2
Feb 1975 Registered as Certified Public Accountant
May 1983 Partner of Tohmatsu Awoki & Co.2
Jun 2007 Chief Executive Officer of Tohmatsu & Co.2
Nov 2010 Senior Advisor of Deloitte Touche Tohmatsu (until May
2011)
Sep 2015 Outside Director of Toshiba (until Jun 2019)
Jul 2016 Audit & Supervisory Board Member of Nippon Life
Insurance Company (Outside Director (Audit &Supervisory Committee Member) from July 2022
(current))
Jun 2020 Member of the Board of Directors (Outside Director) of FG(current)

Apr 1975 Joined Idemitsu Kosan
Jun 2007 Executive Officer and General Manager of Supply &Logistics Department of Idemitsu Kosan
Jun 2008 Managing Executive Officer and General Manager ofSupply & Logistics Department of Idemitsu Kosan
Jun 2009 Director and General Manager of Supply & Logistics
Department of Idemitsu Kosan
Jun 2010 Managing Director and Managing Executive Officer andGeneral Manager of Corporate Planning Department ofIdemitsu Kosan
Apr 2011 Managing Director of Idemitsu Kosan
Jun 2012 Executive Vice President and Representative Director of
Idemitsu Kosan
Jun 2013 Representative Director, President and Chief Executive
Officer of Idemitsu Kosan
Apr 2018 Chairman and Representative Director of Idemitsu Kosan
Jun 2020 Special Advisor of Idemitsu Kosan
Jun 2021 Member of the Board of Directors (Outside Director) of FG(current)
Jun 2022 Honorary Advisor of Idemitsu Kosan (current)
Jun 2023 Outside Director of Mitsui-Soko Holdings (current)

2. Current Deloitte Touche TohmatsuMember of the Compensation Committee

Chairperson of the Audit Committee

Member of the System Failure Response Evaluation Committee

1. Current Mitsubishi Chemical Group

OutsideDirector

Kotaro Ohno
Member of the Nominating Committee

Member of the Audit Committee

Member of the Human Resources Review Meeting

87

Member of the System Failure Response Evaluation Committee

Hiromichi Shinohara
Member of the Nominating Committee

OutsideDirector

Member of the Risk Committee

Member of the Human Resources Review Meeting

Member of the System Failure Response Evaluation Committee

Masami Yamamoto
Member of the Nominating Committee

OutsideDirector

Chairperson of the Compensation Committee

Member of the Human Resources Review Meeting

Brief personal record (major concurrent office indicated in bold)

Brief personal record (major concurrent office indicated in bold)

Brief personal record (major concurrent office indicated in bold)

Apr 1976 Appointed as Public Prosecutor
Jul 2009 Vice-Minister of JusticeAug 2011 Superintending Prosecutor at Sendai High Public
Prosecutors Office
Jul 2012 Superintending Prosecutor at Tokyo High Public
Prosecutors Office
Jul 2014 Prosecutor-GeneralNov 2016 Special Counsel of Mori Hamada & Matsumoto (until Dec
2022)
May 2017 Outside Director of AEON (until May 2023)
Jun 2017 Outside Audit & Supervisory Board Member of Itochu (untilJun 2021)
Outside Audit & Supervisory Board Member ofKomatsu (current)
Jan 2023 Advisor of Atsumi & Sakai (current)
Jun 2023 Member of the Board of Directors (Outside Director) of FG(current)

Apr 1978 Joined Nippon Telegraph and Telephone Public
Corporation (current Nippon Telegraph and Telephone)Jun 2009 Senior Vice President, Head of Research and Development
Planning, Member of the Board of Nippon Telegraph andTelephoneJun 2012 Executive Vice President, Head of Research andDevelopment Planning, Member of the Board of Nippon
Telegraph and TelephoneJun 2014 Senior Executive Vice President, Head of Research andDevelopment Planning, Representative Member of theBoard of Nippon Telegraph and TelephoneJun 2018 Chairman of the Board of Directors of Nippon Telegraphand TelephoneJun 2021 Outside Director of Yamaha (current)
Jun 2022 Executive Advisor of Nippon Telegraph andTelephone (current)
Jun 2023 Member of the Board of Directors (Outside Director) of FG(current)

Apr 1976 Joined Fujitsu
Jun 2005 Corporate Vice President (in Jun 2009 the official title waschanged to “Corporate Executive Officer”) of Fujitsu
Jan 2010 Corporate Senior Executive Vice President of Fujitsu
Apr 2010 President of Fujitsu
Jun 2010 Representative Director, President of Fujitsu
Jun 2015 Representative Director, Chairman of Fujitsu
Jun 2017 Director, Chairman of Fujitsu
Outside Director of JFE Holdings (current)
Jun 2019 Member of the Board of Directors (Outside Director) of FG(current)
Director, Senior Advisor of Fujitsu (current)

Mizuho Financial GroupExecutive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Data section

Appendix

Member of the Board of Directors

Izumi Kobayashi
Chairperson of the Board of Directors

Member of the Nominating Committee

Member of the Human Resources Review Meeting

OutsideDirector
Member of the Risk Committee

Member of the System Failure Response Evaluation Committee

Brief personal record (major concurrent office indicated in bold)
Apr 1981 Joined Mitsubishi Chemical Industries (current Mitsubishi
Chemical)Jun 1985 Joined Merrill Lynch Futures JapanDec 2001 President and Representative Director of Merrill Lynch
Japan Securities (current BofA Securities Japan.) (until
Nov 2008)
Nov 2008 Executive Vice President, the Multilateral Investment
Guarantee Agency of the World Bank GroupJul 2013 Outside Director of ANA Holdings (current)
Jun 2014 Outside Director of Mitsui & Co. (until Jun 2023)
Jul 2014 Member of the Risk Committee of FG (as an outside expert
who is not a director) (until Jun 2017)
Jun 2017 Member of the Board of Directors (Outside Director) of FG(current)
Jun 2020 Outside Director of Omron (current)

Yumiko Noda

Seiji Imai

Hisaaki Hirama

Chairperson (Kaicho)3, Member of the Board of
Directors

Member of the Board of Directors

Brief personal record

Brief personal record▪Head of Global Corporate Company▪Head of Corporate & Institutional Company▪Head of Global Products Unit

▪General Manager of Accounting Department▪General Manager of Nagoya Corporate Branch of BK▪Head of Internal Audit Group

Member of the Audit Committee

Chairperson of the Risk Committee

3. Chairperson (Kaicho) Imai engages in the company's external activities,
but does not chair the Board. The Board is chaired by the outside director,
Ms. Izumi Kobayashi.

Masahiro Kihara

Makoto Umemiya

Member of the Board of Directors
President & Group CEO (Representative
Executive Officer)
Chairperson of the Human Resources Review Meeting

Member of the Board of Directors
Deputy President & Senior Executive Officer(Representative Executive Officer)
Group CDO

Brief personal record

Brief personal record▪Project Manager of Risk Governance Enhancement Project Team
▪General Manager of Risk Management Department of SC▪Head of Financial Control & Accounting Group of SC▪Head of Global Products Unit
▪Head of Global Corporate Division of BK▪General Manager of Osaka Branch of BK▪Head of Financial Control & Accounting Group▪Chief Digital Innovation Officer

OutsideDirector

Member of the Compensation Committee
Member of the Risk Committee

Brief personal record (major concurrent office indicated in bold)
Apr 1982 Joined Bank of America, Tokyo
Mar 1996 Deputy General Manager and Head of Structured Financeof the Long-Term Credit Bank of Japan, London
Jan 2000 Partner, Head of PPP and Privatization ofPricewaterhouseCoopers (Japan)
Jun 2007 Deputy Mayor of Yokohama CityJan 2011 Partner, Head of PPP and Infrastructure of PwC AdvisoryOct 2017 President and Representative Director of Veolia JapanJun 2020 Chairman and Representative Director of Veolia
Japan (current)
Jun 2021 Outside Director of Idemitsu Kosan (current)
Outside Director of Benesse Holdings (current)
Jun 2023 Member of the Board of Directors (Outside Director) of FG(current)

Motonori Wakabayashi

Nobuhiro Kaminoyama

Member of the Board of Directors
Senior Executive Officer
Group CRO

Member of the Board of Directors
Senior Executive Officer
Group CHRO

▪General Manager of Industry Research Division of BK▪Head of Research & Consulting Unit
▪Head of Risk Management Group▪General Manager of Corporate Banking Department No.9 of BK▪General Manager of Corporate Secretariat▪Head of Human Resources Group

Brief personal record

Brief personal record

Definitions:
FG: Mizuho Financial Group BK: Mizuho Bank SC: Mizuho Securities
Integrated Report 2023

88

Corporate governanceCompensation for executive officers
Basic policy1
Our executive compensation system is designed toachieve the following objectives and approaches
pursuant to the basic policy on management under
the Mizuho Financial Group’s Corporate Identity.

Objectives⃝Management that contributes to value creation for various stakeholders.
⃝Improvement of corporate value through continuous and stable corporate growth.

Approaches⃝Incentive function encouraging each of the Officers to fulfill their designated roles to the greatest extent.
⃝Compensation for the responsibilities assigned to, and the performance of, each of the Officers.

1. The full text of the “Basic Policy for Executive Compensation” is posted on the Mizuho Financial Group’s website.
https://www.mizuhogroup.com/binaries/content/assets/pdf/mizuhoglobal/who-we-are/governance/governance/g_report/compensation.pdf

Executive compensation system
We have revised the executive compensation system to encourage the executive officers of the group to undertake new challenges and to function as anincentive for each of the executive officers to exercise their designated function to the fullest, based on our new Purpose and medium-term business plan.
Points of the Fiscal 2023 Executive Compensation System
Enhancement of the
incentive functions
Strengthen the evaluation
framework to contribute to
the creation of value forstakeholders⃝Revise the compensation system to a system comprising “Base Compensation” and “Incentive Compensation” ❶⃝Increase the composition ratio of “Incentive Compensation” ❷－ The Group CEO has the maximum composition ratio of “Incentive Compensation”.

⃝Revise the performance evaluation indicators regarding corporate and individual performance-linked compensation－Set indicators with the evaluation axes of the Mizuho Financial Group and our stakeholders, including employees, customers, the economy andsociety as a whole ❸－Strengthen evaluation of sustainability initiatives ❹⃝Pay a portion of compensation as stock compensation to boost medium- to long-term corporate value and sharevalue with shareholders, etc.

Compensation system
Example of composition of compensation
Compensation type ❶Performance-linked
or not (range)

Payment
timingPayment
methodExecutive officers responsible for business execution
Group CEOBase Compensation1

Not linked

Monthly

Cash

40%

Group executive officers

40%
55%

Incentive Compensation

Stock
Compensation I2
Medium- to Long-term
Incentive Compensation

Stock
Compensation II3

Short-term Incentive Compensation4

Not linked

Time ofresignation

Linked(0–150%)

Deferred
payment overthree years
starting the
fiscal year
after next

Linked(0–150%)

Lump sumin the next
fiscal year5

Stock

60%

85%

15%

15%

17.5%

+2.5％
increase

25%

85%
5%

30%

Cash

55%

5%

Stock

Non-executive officers

❷

45%
22.5%

+2.5％
increase❷

Subject to malus and clawback6
1. Payment will be made monthly in cash in accordance with the roles and responsibilities of each of the Officers.
2. Payment in accordance with the roles and responsibilities of each of the Officers as an incentive to increase corporate value over the medium to long term and for other purposes.
3. Payment in accordance with level of achievement of financial indicators emphasized by the Mizuho Financial Group and evaluation of indicators related to stakeholders as an incentive to increase corporate value over the
medium to long term and for other purposes.
4. Payment in accordance with level of achievement of financial indicators emphasized by the Mizuho Financial Group and the evaluation of individual performance as an incentive for fiscal year performance to increase
corporate value.
5. Deferred payment over three years starting the fiscal year after next for payments above a certain amount.
6. A system has been adopted that enables malus (forfeiture of compensation remaining unpaid) and clawback (request for return of compensation) by resolution of the Compensation Committee depending on theperformance of the group or the individual.

89

Mizuho Financial GroupExecutive messages / Features

Mizuho’s value creation process

Governance for value creation

Business strategies for value creation

Data section

Appendix

Performance evaluation indicators for performance-linked compensation ❸❹Medium- to Long-term Incentive Compensation (Stock Compensation II)
Evaluation of Medium- to Long-term performance indicators1
Evaluation axes

Mizuho Financial Groupfinancial indicatorsBaseamountCustomers
Economy and society
Employees

Performance indicators

WeightConsolidated ROE2

25%

Consolidated Net Business Profits3

25%

Total Shareholder Return (TSR)

10%

Customer satisfaction4
Sustainable finance amount4
Assessments by ESG rating agencies5
Climate-related initiatives4
Engagement score6
Inclusion score6

10%

Relationship between achievement
rate and evaluation factor(Example for the Consolidated ROE)
Evaluation factor (%)
150
100

0

100

150 Achievement rate (%)

Sustainability-related initiatives
are reflected in evaluations

10%
20%

1. The Compensation Committee makes the final decision (maximum 150%) based on target achievement rates for performance indicators considering the business environment and theexistence of events that should be reflected individually
2. Excludes Net Unrealized Gains (Losses) on Other Securities.
3. Consolidated Net Business Profits + Net Gains (Losses) related to ETFs and Others
4. Evaluated on the target achievement rates on related internal indicators
5. Evaluated by comparison with results of previous years and peers that have been assessed by four major ESG rating agencies (S&P Global, Sustainalytics, MSCI, and FTSE)
6. Evaluated on the target achievement rate for the positive response rate for four Staff Survey questions related to engagement and inclusion.

Short-term Incentive Compensation1

1. The evaluation factor for the short-term performance indicators and individual evaluation is capped at 150%

Evaluation of short-term performance indicators1
Evaluation axisBaseamountMizuho Financial Groupfinancial indicators

Individual evaluation1

Performance indicators3

WeightMain evaluation perspectives (Group CEO example)

Profit Attributable to
Owners of Parent 2

50%

Gross Profit RORA3

50%⃝Demonstrates leadership in improving the group’s
corporate culture and disseminating the group’s
Purpose and Code of Conduct⃝Succession initiatives for the Group CEO andmanagement team

1. The Compensation Committee makes the final decision based on target achievement rates for performanceindicators considering the business environment and the existence of events that should be reflectedindividually. Varies from 0–140% in the case of the Group CEO.
2. Net Income for the period Attributable to Shareholders of the Parent Company
3. RORA: Return on Risk-weighted Assets

Compensation GovernanceIndividual compensation determination process
The Compensation Committee shall determine the executive compensation
system including the compensation system taking into account the Basic Policy
for Executive Compensation. In addition, in order to ensure fairness andobjectivity concerning the compensation for each officer, the Compensation
Committee shall determine the compensation for each individual director andexecutive officer of Mizuho Financial Group as defined in the Companies Act
and approve the compensation of each individual director of the Three Core
Companies (Mizuho Bank, Mizuho Trust & Banking, and Mizuho Securities).

Appropriateness of compensation level and composition
We conduct a market survey each year with other companies in the same
industry and similar-scale corporate groups as the peer group, and examine theappropriateness of the compensation level and composition.

1. The Compensation Committee makes the decision based on theevaluation perspectives, etc. Varies from 0–110% in the case of
the Group CEO.

Individual compensation determination process diagram

Mizuho Financial Group
Compensation Committee (composed of outside directors)
Determination ofcompensation

President &Group CEOApproval ofcompensation

Application ofcompensation

Approval ofcompensation

Directors

Determination ofcompensation

Executive officers as definedin our internal regulations

Application ofcompensation

CEO of each company
Determination ofcompensation

Directors

Executive officers as definedin the Companies Act

Mizuho Bank,
Mizuho Trust & Banking,and Mizuho Securities

Determination ofcompensation

Executive officers

Integrated Report 2023

90

Corporate governanceStatus of activities of the Board of Directors and each committee
Status of main activities in FY2022
Board of Directors makes decisions on business execution such as the basic management
Board of Directors The
policy and supervises directors and executive officers (as defined in the Companies Act).
Composition in
FY2022Major agenda
items for FY2022

Main points

Number of

6 outside directors and 6 internal directors (including 2 non-executive directors) meetings in
FY2022⃝ R evision of our Corporate Identity and the new medium-term business ⃝plan.
⃝⃝ Establishment of a new group-based human resources framework.
⃝ Status of sustainability initiatives.
⃝

24

Average
attendance

100 %Progress of the business improvement plan
Assessment of the significance of Mizuho Financial Group’s cross-shareholdings inother listed companies.
Report on the status of the performance of duties (current initiatives and recognition ofissues) by top management of major subsidiaries.

⃝ In‌ FY2022, the Board of Directors conducted discussions focused on our Corporate Identity and growth strategy to guide the actions of directors, executive officers, andemployees so that the group can proceed to the next stage, and held a series of discussions regarding areas such as IT systems, anti-money laundering measures, andcombating the financing of terrorism (AML/CFT), as well as cybersecurity and fiduciary duties, which are areas underpinning our Corporate Identity and growth strategy.
⃝ ‌More specifically, opinions were expressed regarding the importance of employee participation in the formulation process for our Corporate Identity and the need toshare with employees our reasons for contributing to economic and social development. Dialogue and exchanges of views also took place between outside directors
and members of our employee working groups.
⃝ ‌With respect to the growth strategy and medium-term business plan, the Board of Directors held active discussions from multifaceted perspectives on matters suchas the need to clarify the role that the group should play in a medium- to long-term vision for society, the business portfolio or strengths and characteristics that will
help us fulfill such a role, formulation of a plan that considers price-to-book ratio, return on equity (ROE), and price earnings ratio (PER), and the need for global
expansion and utilization of technology to fulfill the growth strategy.

other things, the Nominating Committee makes decisions on the content ofNominating Committee Amongproposals regarding the appointment and dismissal of directors that are submitted togeneral meetings of shareholders.
Number ofmeetings in
FY2022Composition in
FY2022

5 outside directors (Outside director ratio: 100%)

Major agenda
items for FY2022⃝ Approach to the composition of the Board of Directors (including skills matrix). ⃝⃝ S uccession of outside directors, and director nominations and appointments (atMizuho Financial Group and its subsidiaries) for FY2023.

Main points

12

Average
attendance

100 %Succession of Group CEO.

‌ FY2022, the Nominating Committee held a series of discussions regarding the composition of Boards of Directors at Mizuho Financial Group and its subsidiaries,⃝ In
and ideal forms of succession, in order to more effectively perform its supervisory functions based on the group’s growth strategy.
⃝ ‌More specifically, opinions were expressed regarding the importance of skills, gender, and other diversity factors in light of changes in the internal and external
environment. In addition, the Nominating Committee held active discussions from multifaceted perspectives on matters such as the need for planned succession of
directors in light of the entire Board of Directors portfolio, the terms of office of outside directors, and other factors at Mizuho Financial Group and its subsidiaries.

Compensation Committee determines the basic policy for determination ofCompensation Committee The
executive compensation and the compensation for each individual director andexecutive officer (as defined in the Companies Act) and conducts other matters.
Composition in
FY2022

3 outside directors (Outside director ratio: 100%)

Major agenda
items for FY2022⃝ R eview of the executive compensation system in light of the internal andexternal environment.
⃝ Determination of corporate and individual performance-linked compensation
for FY2021.

Main points

91

Mizuho Financial Group

Number ofmeetings in
FY2022⃝8

Average
attendance

100 % etermination of compensation for each individual director and executiveD
officer (as defined in the Companies Act).

⃝ In‌ FY2022, based on discussions by the Board of Directors and other governance bodies regarding our new Corporate Identity and growth strategy, the Compensation
Committee held a series of discussions regarding the ideal executive compensation system to provide an incentive for directors and executive officers to work
together in carrying out their respective functions to the fullest.
⃝ ‌More specifically, opinions were expressed regarding the need for an incentive compensation system that enables directors and executive officers to be more
conscious of medium- to long-term growth and the need to incorporate into incentive compensation evaluation indicators that consider multiple stakeholders,
including customers, employees, and the wider economy and society. In addition, the Compensation Committee held active discussions from multifaceted
perspectives on matters such as evaluations that will encourage individual directors and executive officers not only to demonstrate their capabilities in theirrespective areas of responsibility, but also to play leadership roles from the perspective of total optimization that transcends their respective areas of responsibility.

Executive messages / Features

Mizuho’s value creation process

Audit Committee

Business strategies for value creation

Governance for value creation

Data section

Appendix

The Audit Committee audits the legality and appropriateness of the execution of duties by directors
and executive officers (as defined in the Companies Act).
Number ofmeetings in
FY202219

100 %Composition in
FY2022

3 outside directors and 1 internal non-executive director (Outside director ratio: 75%)

Major agenda
items for FY2022⃝⃝⃝

Status of internal controls over financial reporting.
Status of efforts to strengthen internal management systems.
Status of initiatives to ensure stable business operation.

⃝‌ FY2022, in order to ensure stable business operations, the Audit Committee held a series of discussions from the perspective of whether resources were allocatedIn
appropriately based on recognition of risks in the global business environment when implementing the group’s priority measures, and whether management’s
message has been entrenched.
‌In terms of specific activities, the Audit Committee checked the status of progress of priority measures in the group, risk recognition, and efforts to strengtheninternal management systems through on-site inspection of branches and offices of our subsidiaries in addition to receiving reports from, and exchanging opinions
with, directors, executive officers, and employees.
‌The Audit Committee conducted effective and efficient auditing on a group basis by sharing risk recognition in a timely manner through enhanced communication
with the Internal Audit Group, in addition to closely collaborating with the accounting auditors and the Audit & Supervisory Committees of our major subsidiaries.

Main points⃝⃝

Risk Committee
Composition in
FY2022Major agenda
items for FY2022

⃝
⃝
⃝
⃝
⃝

⃝
⃝

⃝

10

Average
attendance

100 %Number ofmeetings in
FY2022

10

Average
attendance

100 % ppointment of executive officers to new posts established during the current ⃝ Appointment of executive officers in FY2023.
A
period.
Determining the requirements of personnel regarding key posts and status of
successions.
‌In FY2022, the Human Resources Review Meeting held a series of discussions on the status of workforce pooling and training from the perspective of the ideal
person required for each post and also the selection of management teams based on the current environment, from the perspective of ensuring stable succession to
key posts that support the medium- to long-term growth of the group.
‌More specifically, opinions were expressed on the need to enhance the next generation of the workforce pool, including ensuring diversity of gender and otherattributes, and other specific areas that training should focus on. In addition, active discussions were held from multifaceted perspectives on matters such as
development of an efficient business execution structure and future succession or allocation of personnel who will contribute to strengthening frontline capabilities
with respect to appointment of executive officers in FY2023.

System Failure Response
Evaluation Committee

The System Failure Response Evaluation Committee continuously monitors the progressof measures to prevent further system failure incidents and the extent to which suchmeasures have taken root, and reports the status to the Board of Directors.

Composition in
FY2022

4 outside directors (Outside director ratio: 100%)

Major agenda
items for FY2022⃝⃝

Main points

Number ofmeetings in
FY2022

The Human Resources Review Meeting deliberates on plans for the appointment and dismissalof Mizuho Financial Group’s executive officers (as defined in the Companies Act) determined by
the Board of Directors.

5 outside directors and Group CEO⃝
Main points

The Risk Committee provides suggestions to the Board of Directors regarding decision-making andsupervision relating to risk governance.

S election of top risks and the direction of risk appetite framework (RAF)⃝ Status of sustainability initiatives.
operations.
⃝ Management of system risk and status of cybersecurity initiatives.
Status of comprehensive risk management and RAF operations.
‌In FY2022, the Risk Committee held a series of discussions regarding the appropriateness of the group’s current risk management, and also the framework for thegroup’s risk management and how it should be operated by identifying changes in the global business environment from a forward-looking perspective.
‌More specifically, in addition to discussions regarding sophistication of the framework for the group’s risk management and monitoring indices with respect to the
management of RAF and comprehensive risk, opinions were expressed regarding the importance of flexibly reviewing the top risks and scenarios as necessary,taking into consideration the uncertain environment.
‌In addition, with respect to sustainability, to improve climate-related risk management, the Risk Committee held active discussions from multifaceted perspectives
on matters such as the need to implement risk control for carbon-related sectors over a long-term timeframe that takes into consideration the perspective of
supporting client-side decarbonization, how client engagements should be monitored, and the importance of policy engagement.

Human Resources
Review Meeting
Major agenda
items for FY2022

Status of the progress of priority measures in each in-house company.
Status of efforts to reform the corporate culture.

1 outside director, 2 external experts, and 1 internal non-executive director

Main points

Composition in
FY2022⃝⃝Average
attendance

Status of progress on the business improvement plan.
Status of efforts to strengthen IT governance.

Number ofmeetings in
FY2022⃝

9

Average
attendance

100 %S tatus of new initiatives to understand the actual situation at frontline offices
and strengthen frontline capabilities.

⃝ In‌ FY2022, the System Failure Response Evaluation Committee reviewed progress on the business improvement plan, and also held discussions from the perspectiveof whether recognition of issues regarding the backdrop of measures to prevent further incidents and related initiatives have been established and instilled at
frontline offices.
⃝ ‌In terms of specific activities, the System Failure Response Evaluation Committee received reports from, and exchanged opinions with, directors, executive officers,
and employees of Mizuho Financial Group, Mizuho Bank, and Mizuho Research & Technologies, visited Mizuho Research & Technologies development andoperational sites for on-site inspections, and engaged in dialogue with directors, executive officers, and employees of Mizuho Research & Technologies. It also
observed training based on system failure scenarios, engaged in dialogue with directors, executive officers, and employees responsible for crisis management, andexchanged opinions with directors experienced in IT and IT systems outside Mizuho Research & Technologies. The System Failure Response Evaluation Committee
held active discussions from multifaceted perspectives on matters such as the establishment status of measures to prevent recurrence and issues to be addressed in
the future.
Integrated Report 2023

92

Corporate governancePrimary initiatives for enhancing the effectiveness of the Board of Directors
Summary of initiatives for enhancing the effectiveness of the Board of Directors
Each year Mizuho Financial Group performs an analysis and evaluation of the effectiveness of the Board of Directors as a whole and discloses a summary of the results.
Mizuho Financial Group also employs a third-party organization to perform an evaluation at least once every three years. Based on the results of the effectivenessevaluation conducted for fiscal 2021 and subsequent activities by the Board of Directors and other governance bodies, Mizuho Financial Group will strive to further
improve the effectiveness of the Board of Directors going forward, as described below.

Review of fiscal 2022 based on the results of the effectiveness evaluation
In light of the results of the effectiveness evaluation conducted for fiscal 2021* and subsequent supervisory activities, the Board of Directors’ recognizes
achievements for fiscal 2022 and issues to be addressed as follows.

▶The evaluation confirmed that, overall, the Board of Directors was able to secure effective management, including:Achievements⃝Implementation of information-gathering activities on a multifaceted basis, such as enhancing opportunities for discussion with CEOs and directors ofsubsidiaries; on-site visits, including at frontline offices and IT locations; and sessions with members of employee-led working groups.
⃝Enrichment of discussions on key agenda items related to group strategies, such as the Corporate Identity and the next medium-term business plan.
⃝Enhancement of monitoring of top risks, such as system risk and cybersecurity risk, including monitoring by the Audit Committee, Risk Committee, etc.
⃝Ongoing follow-up on issues identified through discussions at meetings of the Board of Directors.

▶Issues remain in terms of the efficient and effective management of the Board of Directors. In addition, there is still roomfor enhancement of initiatives to further improve Board of Directors effectiveness.
Issues⃝Redundancy and other inefficiencies have been observed in discussions and activities between Mizuho Financial Group and its subsidiaries,
and in those between the Board of Directors and its committees. Thus, there is still room for improvement in terms of the efficient andeffective management of the Board of Directors as the overall supervisory organization for the group, including subsidiaries.
⃝There are challenges in terms of the framework for reflecting the issues identified and discoveries made through management of the Boardof Directors for the current fiscal year in management for the following fiscal year and beyond.

* Corporate Governance Report [Supplementary Principle 4.11.3]
https://www.mizuhogroup.com/binaries/content/assets/pdf/mizuhoglobal/who-weare/governance/governance/g_report/g_report.pdf

Setting the management policy of the Board of Directors (key topics and supervision perspectives)
As its management policy, the Board of Directors sets key focus topics and supervisory perspectives based on the issues identified through the results of theeffectiveness evaluation in the previous fiscal year and its daily supervisory activities, the fiscal year plan formulated by the business execution line, and otherfactors. The Board of Directors believes that reflecting the results of the effectiveness evaluation conducted for the previous fiscal year in its management
policy for the current fiscal year will enable it to autonomously and continuously enhance its supervisory functions. In addition, the Board of Directors will
formulate an annual plan for effectively and efficiently monitoring its management policy, including key topics, and then operate in a planned manner.

May of each year

Plan

Formulate annual management policy

April of the following year

From June of each year to May of the following year

Identify issues and examine improvement measures

Formulate and implement an annual plan

Act

Do

April of the following year

Check

Evaluate effectiveness93

Mizuho Financial GroupExecutive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Data section

Appendix

Fiscal 2023 Board of Directors management policy
The Board of Directors of the Mizuho Financial Group conducted deliberations on the Board of Directors fiscal 2023 management policy and key topics. Based on the results of thedeliberations, at the Board of Directors meeting held on May 15, the fiscal 2023 Board of Directors management policy (key topics and supervisory perspectives) was decided as follows.
Topics based on medium-term business plan
Business focus areas
Support for the doubling of asset-based incomeKey
topicsEnhancing the competitiveness of Japanese companies

Improving Customer Experience

Global Corporate & Investment Banking (CIB) business model

Corporate culture transformation

Human capital enhancement

Digital transformation

IT reforms

Maintenance of stable business operations Establishment of improvement response measures

Supervisoryperspectives

Sustainability and innovation

Cybersecurity

AML/CFT

Corporate culture

Whether or not changes are seen in the awareness and action of directors, executive officers,
and employees based on the Corporate Identity and Purpose, etc.

Actions based on strategies

Whether or not measures are in line with strategies being made concrete and implemented, etc.

Completeness/continuation/improvement

Whether or not the improvement cycle after measure implementation is being followed up, etc.

Director training
We provide our directors with opportunities to acquire and improve knowledge that is necessary to fulfill their expected roles and duties, at the time of
appointment and continuously thereafter.

1. Offering all directors opportunities for acquiring knowledge and self-improvement⃝Training is provided for newly appointed directors, mainly regarding the duties and responsibilities of directors, and is conducted by an outside instructor (lawyer).
⃝Directors gain an overall perspective of the management of the group by discussing various proposals, reports, and other activities in the Board of Directors’ meetings.
⃝Training is also held and conducted by an outside instructor regarding compliance and customer protection and awareness of human rights related issues.
⃝When necessary for the performance of duties, directors in charge of various areas make individual presentations; advice and instruction isprovided by external specialists, and training is provided (at the company’s expense).

2. Opportunities to acquire and improve knowledge for outside directors
At the time of appointment: Improving understanding of the group’s financial and other businesses⃝Intensive explanation at the time of appointment will be conducted individually for newly appointed outside directors.
－Explanations from executive officers in charge of different business areas and the General Manager of the Corporate Secretariat regarding Mizuho’s
Corporate Identity, business domain, business strategy, business plan, finances, corporate governance system, etc.
Post-appointment (the examples below were conducted for fiscal 2022)⃝Deepening understanding concerning Board of Directors’ proposals－Providing thorough explanations of Board of Directors’ proposals in advance and conducting follow-up (before and after each Board meeting)⃝Improving communication outside of Board of Directors’ meetings－Outside Director Session (held five times)
Outside directors exchange information and engage in consensus building while sharing opinions on management matters, the shape that corporate
governance should take, and other items (exchange opinions with the outside directors of subsidiaries as well)－Offsite meetings on business operations (held nine times) Held so that outside directors can have replete communications with the business execution line and hold high-quality discussions at the Board of Directors based on a sufficientunderstanding of the conditions of the business execution line (Mizuho Financial Group issues based on comparisons with other companies, brand communication, etc.)⃝Other opportunities to acquire/enhance knowledge－Watching the Group-wide General Managers’ Meeting－Provision of opportunities to view IT systems and digital technology training for internal directors and executive officers

Integrated Report 2023

94

Risk governance

Basic approach
To fulfill our responsibility as a global financial institution, the Mizuho group integrates the implementation of risk management with theexecution of business strategy and financial strategy through our risk appetite framework, and we advance appropriate risk-taking and risk
control in order to grow and develop sustainably together with customers, economies, and society as a whole.

Message from the Group CRO
The present international situation is extremely uncertain as the rivalry

high inflation. In the US, an inverted yield curve has already becomeamong superpowers for economic and technological leadership overlaps

prolonged and the cumulative impact of interest rate hikes could transmit

with the Russia-Ukraine conflict, for which there is no end in sight yet.

to credit tightening and a downturn in the real economy. Moreover, if

Amid the concern over further emergence of geopolitical risk, supply

inflation does not subside, additional monetary tightening may becomechains which have spread globally are being fragmented and forced to benecessary and the impact on the macro economy and financial markets

reconstructed, and it seems that globalization is being rolled back.

must be carefully discerned. Furthermore, monetary policy may change
within Japan as well, depending on the inflation trends. Mizuho has

While a low interest rate environment had persisted globally ever since

designated these as top risks and formulated strategies in our new

the global financial crisis in 2008, central banks around the world havemedium-term business plan based on such various risks. For example, thebeen raising interest rates at an unprecedented pace to counter continued

bankruptcies of regional banks in the US at the beginning of 2023 haveunderlined the importance not only of the liquidity and interest-rate risk,
which are traditional management issues for banks, but also the new riskof a “digital bank run” which is particular to today’s digital society. We
will continue to address multifaceted risk management while being

Motonori
Wakabayashi
Member of the Board of Directors
Senior Executive Officer
Group Chief Risk Officer(Group CRO)

mindful of newly emerging risks including the lessons from these recent
events.
Because the environment surrounding Mizuho is constantly changing interms of the macro economy, geopolitics, and regulations, to successfully
implement the new medium-term business plan, we need to discern thedomestic and international environment in a forward-looking manner,realize optimal risk and return under integrated strategy and risk
management, and secure sustainable and stable profits. Also, theimportance of non-financial value as a source of corporate value has
recently been increasing. Mizuho is proactively addressing thestrengthening of risk management in non-financial areas including
preparations against cyberattacks for which the growing risk is salient.
At Mizuho, we will continue to strive to ceaselessly strengthen risk
governance and to contribute to the realization of prosperity together withcustomers, economies, and society as a whole.

95

Mizuho Financial GroupExecutive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Data section

Appendix

Top risk management
We designate risks that we recognize as potentially having a major impact on the Mizuho group as “top risks.” We are ensuring consistency across related
risk management operations by deepening our risk communications across the group through our management of top risks and integrating our perspectives onrisk awareness.

Top risks

The designation of top risks and the status of their control during the period are reported to the Risk Committee, the Board of Directors, and other bodies, andmultifaceted discussions are held including with the participation of outside experts and outside directors.
Moreover, regarding the designated top risks, we are looking into additional risk control measures such as preventative measures and follow-up responses. By
incorporating these into our business plans, we are strengthening our risk governance.

Continuation of high inflation and spillover to credit risk

A shift in monetary policy and growing fiscal concerns

Escalating US-China conflict and sluggish Chinese economy

Global decoupling and growing geopolitical risks

Worsening impact of climate change

IT system failures

Cyberattacks

Money laundering / Financing of terrorism

Improper acts and omissions by executive officers/employees

Stagnation of sustainable growth due to talent shortages

Changes in the competitive environment⇒P. 114 Risk management structure

Risk appetite framework (RAF)
We have positioned our RAF as the corporate management framework for meeting our risk appetite. Risk appetite refers to the types and levels of risk that wewill accept in order to implement our business and financial strategies.
Through our RAF, we manage strategy and risk in an integrated manner and aim to achieve the optimal risk and return through appropriate risk-taking and risk
control. Implementing this requires that a sound risk culture is firmly established among executive officers and employees. In order to do this, Mizuho hasprescribed the “basic stance toward dealing with risk” in the Mizuho Code of Conduct as a guideline for behavior when dealing with risk.
In the actual implementation of our RAF, the Board of Directors determines basic matters concerning the RAF and also decides on a risk appetite statement(RAS), which documents the RAF’s management system and Mizuho’s risk appetite. Operations are supervised based on the Board’s decisions. In addition, theRisk Committee, which advises the Board of Directors, provides advice regarding risk governance. In business operations, the Group CRO, Group CFO, andGroup CSO provide assistance overseen by the Group CEO, and implement business strategy, financial strategy, and risk management from an overall
perspective.
Risk appetite is determined through management discussions on the outlook for external factors such as the macroeconomic, regulatory, and competitiveenvironment, along with top risks and other potential risk events. These are then incorporated into baseline scenarios and risk scenarios that are sharedinternally.
Based on our awareness of these external environments, we then clarify the risk appetite is consistent with the medium-term and fiscal year business plans
and formulate the risk appetite policy as the policy concerning risk-taking. Also, regarding capital strengths, profitability, and liquidity, we set the risk appetite
indices and their levels as quantitative indicators indicating the suitability of risk-taking. The risk appetite operating conditions are regularly monitored andreported to the Board of Directors. The risk appetite is also revised as necessary when there are changes in the environment or strategies.

Comprehensive risk management
Based on our fundamental approach to implementing the RAF, we grasp comprehensive group risk and position comprehensive risk management as a unified
risk management framework intended to enhance corporate value.
In comprehensive risk management, Mizuho has established basic policies for risk management that are applicable to the group as a whole by resolution of
the Board of Directors. In our basic policies for risk management, we stipulate risk areas, and the requisite organizational structure and employee training for
ensuring appropriate levels of risk management. The policies also provide for audits to measure the effectiveness and suitability of the management structure.

Integrated Report 2023

96

Risk governanceIn line with these basic policies, we analyze risk comprehensively from multiple perspectives and adopt a variety of methods to enhance our risk management
system. In fiscal 2022 we newly formulated basic policies regarding third-party risk, cybersecurity risk, and climate-related risk and clarified the management
structure. We are also enhancing the structure on a daily basis to manage new risks that are not sufficiently grasped by the existing risk management
framework.
⇒P. 114 Risk management structure

Mizuho’s risk management system
Mizuho Financial Group
Supervision

Management

Board of Directors●Determines basic mattersregarding RAF andcomprehensive risk
management●Determines risk appetite
policies, indices, and RAS●Supervises businessexecution (riskmanagement conditions) bymanagement

Group CEO
Executive Management Committee

Business policy committees●Deliberates on and coordinates
operation and monitoring
matters concerning importantrisk management●Deliberates on important mattersconcerning risk management(e.g., Risk Management Committee)●Deliberates on and coordinates the basic policy for risk management and the risk management system●Deliberates on and coordinates operation and monitoring matters concerning risk management●Determines top risks

Risk appetite framework

Risk Committee

Promotes appropriate risk-taking and risk control with an awareness of risk and return●Advises the Board of
Directors on decisions andsupervision regarding risk
governanceComprehensive risk management
Implements risk management in accordance with the characteristics of each risk
Operational risk

Credit risk

Reputational risk

Information technology risk
Cybersecurity Risk

Audit Committee●Audits the legality andappropriateness of theperformance of duties bydirectors and executive
officers

Legal risk
Human capital risk

Set risk management policies

Give instructions and approval concerning risk management

Mizuho Trust & Banking

Third-party risk1

Tangible asset risk

Liquidity risk

Regulatory risk

Mizuho Bank

Model risk

Operations risk

Market risk

Mizuho Securities

Report the risk management situation

Mizuho Americas

Climate-related risk2

Submit applications concerning risk management

Other core group companies

1. Complex risk spanning other risks.
2. Risk that could amplify other risks.

Stress testing
At Mizuho, we assess the suitability of our risk appetite and the validity of our business plans through stress testing, calculating and assessing the financial
effect on our capital adequacy ratio and on our performance.
We carry out stress testing based on scenarios formulated taking into account current economic conditions and future outlooks, vulnerabilities in the Mizuho
group’s business and finance structures, and other factors. We can confirm whether our capital adequacy ratio, performance, and other indicators are
sufficient in the case that stress events actually materialize. If such indicators fall below the necessary level, we reconsider and revise our risk appetite andbusiness plans. In addition, we confirm the balance between owned capital and risk capital, including interest rate risk in the banking book, at the post-stressstage to assess the adequacy of the capital level.
In addition, regarding liquidity risk as well, with respect to the future balance sheet and in light of business plans, we implement verifications under a harshscenario whereby stress across the overall market and stress inherent to the Mizuho group occur simultaneously.
Furthermore, to structure robust risk management systems, stress testing is also used to manage risk in various risk categories, such as market risk.
97

Mizuho Financial GroupExecutive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Data section

Appendix

Cybersecurity

Basic approach
We consider cyberattacks to be one of the top risks for our business, and we are continuously pressing forward with cybersecurity measures as per our
Declaration of Cybersecurity Management.
Declaration of Cybersecurity Management

https://www.mizuhogroup.com/who-we-are/activity/cybersecurity

Cyberattacks are on the rise with the advancement of digitalization throughout society
Digitalization continues to advance in many regions around the world, and the Internet has become a space where large volumes of private information
circulate and accumulate. There has been an increase in cyberattacks with suspected state involvement, and the number of cyberattacks that target
confidential information held by companies is also growing.

Mizuho’s cybersecurity initiatives
With Mizuho-CIRT1 taking the lead, we have assigned high-level professionals and are drawing on intelligence and cutting-edge technology developed incollaboration with external specialized organizations, while also establishing a 24-hour, 365-day monitoring framework via integrated SOC2 and strengthening
our resilience frameworks, including the analysis of malware and the development of defense-in-depth measures. We are also working to further strengthen
measures by having independent bodies make objective assessments to supplement in-house testing. To prepare for emergency situations, we conduct testingand drills that include TLPT3 and phishing email drills held at least once every six months and also focus on personnel training and development, measures forthe supply chain, and raising the awareness of customers.
1. Cyber Incident Response Team
2. Security Operation Center
3. Threat Led Penetration Test (a test to verify the strength of security measures by attempting to infiltrate a system using existing technologies)

Mizuho’s cybersecurity management framework
At Mizuho, under the supervision of the Board of Directors, we have established the position of Group Chief Information Security Officer (Group CISO), who
administers overall group-wide / global cybersecurity management, and we have also established CISOs at our main subsidiaries. In the interest of clarifying
how the check-and-balance system applies to the Group Chief Information Officer (Group CIO) as part of our second line of defense, the Group CISO reports toboth the Group CIO and Group Chief Risk Officer (Group CRO). We are striving to enhance our cybersecurity posture by implementing this system of double
reporting. In addition, progress made on the various measures taken is reported to the Executive Management Committee and Board of Directors, which
review policies and resource allocation related to cybersecurity.
Mizuho Financial Group
Supervision

Board of Directors

Management

Group CEO
Executive Management Committee
Internal Audit Committee

Group CIO

Internal Audit Group

Group CRO
Audit

Group Chief Information Security Officer (Group CISO)

Department in charge

Cyber Security Management Department

Monitor and manage

Group companies

Integrated Report 2023

98

Compliance

Basic approach
One of our core business principles is the strict observance of all laws and regulations and the pursuit of fair and honest corporate activities that
conform to socially-accepted norms, and as such we have established a compliance framework befitting a global financial group.

We are committed to implementing a compliance framework to practice fair andhonest corporate activities in order to live up to the trust of our customers andsociety, and we are constantly aware of the weight of our social responsibility
and public mission as a provider of economic and social infrastructure.
- ‌We are committed to enhancing our compliance framework in light of changes in the environment and increasing demands
globally, such as the prevention of money laundering, the severance of relationships with organized crime, and the responseto stricter global regulations regarding market transactions and personal information management.
- ‌We will strive to create a culture, through messages from management and training, in which each and every employee
practices compliance autonomously.
Executive Officer
Makoto Matsubara SeniorGroup Chief Compliance Officer (Group CCO)

Compliance structure
Mizuho Financial Group and its core group companies
discuss important matters concerning compliance at eachcompany’s Compliance Committee (chaired by theirrespective CCOs), and promote compliance under theleadership of the Group Chief Compliance Officer (CCO) andthe companies’ respective CCOs.
At each organizational unit (such as branches anddepartments) in each company, the general manager, as thehead of the organizational unit, is responsible for guidance
and implementation related to compliance matters, and thecompliance officer or compliance administrator at eachorganizational unit reviews the status of compliance.

Mizuho Financial Group
Supervision/Audit
Board of Directors

Management
Group CEO

Executive Management Committee
Compliance Committee

Audit Committee(Chairperson: Group CCO)

Group CCO (Department in charge: Compliance Department)
Every organizational unit
Head of each organizational unit

Compliance officer/compliance administrator

Monitoring/Management

Core group companies (e.g. Mizuho Bank, Mizuho Trust & Banking, and Mizuho Securities)
Monitoring/Management

Subsidiaries of the above group companies

Compliance practices
We have established the Mizuho Code of Conduct which sets forth clear and concrete standards of ethical behavior to be followed when implementing theprecepts of our Corporate Identity. Based on the revision of our Corporate Identity and changes in the outside environment, we have recently revised the Codeof Conduct to make the content simple and enduring while setting forth the key points that all executive officers and employees should understand.
Furthermore, each of our group companies has also prepared a compliance manual, that clarifies the laws and regulations that we must observe in ourbusiness operations and the compliance practices we are required to follow. Mizuho ensures that all executive officers and employees are fully acquainted
with both the Code of Conduct and the compliance manual’s content through ongoing training and messages from management.
We monitor the status of compliance levels through self-assessments by each department and monitoring conducted by the compliance department of eachcompany. In addition, every fiscal year, each of our group companies formulates a compliance program which is a concrete, practical plan for enhancing thecompliance framework, conducting training, checks, and the like in light of changes in the domestic and international market transaction environment andincreasing demands such as for prevention of money laundering and protection and management of personal information on a global basis. Progress on thecompliance program is monitored every six months.
99

Mizuho Financial GroupExecutive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Data section

Appendix

Financial crime risk management
Financial crimes are becoming more diverse and sophisticated, and acts of terrorism continue to occur around the world. In light of these trends, measures foranti-money laundering (AML), combating the financing of terrorism (CFT), and counter-proliferation financing (CPF) are extremely important. Against thisbackdrop, the key challenge for financial institutions is the strengthening of their AML/CFT/CPF measures. As a financial services provider operating globally,
Mizuho Financial Group is subject to the laws and regulations of both Japan and the other jurisdictions where it operates, as well as to supervision fromfinancial regulators based on those laws and regulations. Accordingly, being aware that money laundering / financing of terrorism is one of our top risks, wehave formulated a framework to ensure compliance with the related laws and regulations in each jurisdiction and we are also continually enhancing our AML/
CFT/CPF measures. By preventing the transfer of criminal proceeds and cutting off the supply of funds to terrorist organizations, we contribute to the protectionof our customers, the security of the international community, and the sound development of economic activities.
Recognizing the social importance of preventing bribery, corruption, and corrupt practices, Mizuho has formulated a Policy for Anti-Bribery and Corruption andput in place a framework to prevent bribery and other corrupt practices at all group companies.

Our stance towards organized crime
In order to prevent organized crime from being involved in our business activities and to prevent any harm caused by them, the Mizuho Code of Conduct includes
a policy covering our zero-tolerance stance on business relationships with individuals or organizations that are in any way associated with organized crime andtherefore threaten the order and safety of civil society.
We have also formed an Anti-Organized Crime Committee which includes external experts in industry-specific, in-depth discussions on this subject, in addition
to other initiatives we are implementing on a group-wide basis to ensure that we have no direct or indirect associations with organized crime. Moreover,drawing on the discussions in this committee, these matters are also discussed and reported on at meetings of the compliance committees of Mizuho Financial
Group, Mizuho Bank, Mizuho Trust & Banking, and Mizuho Securities.
Furthermore, core group companies have established departments dedicated to responding to organized crimes, appointed an officer responsible for responding
to unreasonable demands, formulated a manual on how to manage such issues, and established a framework for conducting training. If required, we consult
with third-party experts and authorities on the handling of specific cases.

Measures for ensuring compliance
At Mizuho, compliance-related education and training are key measures for ensuring appropriate compliance.
During fiscal 2022, Mizuho continued to provide effective training tailored to a broad range of roles within the organization. We conducted effective training sessions,
including mandatory compliance training sessions for all employees; role-specific training for executive officers, general managers, compliance officers, and other senior
management members; and 24 e-learning training sessions on specific compliance topics.
In addition to understanding the rules and procedures, the training is designed to deepen understanding of the purpose and background of laws and regulations, and toprovide points to note regarding responding to compliance risks in a timely manner. We will continue to improve this content going forward.
In addition to the measures to ensure compliance, we are also dedicated to detecting potential compliance issues at the earliest stage possible and taking appropriate
action. Furthermore, each group company has established a hotline which executive officers and employees can call in order to speak with dedicated persons in the
Compliance Division or an external law office or compliance professional.

Internal reporting system (Compliance hotline)
We have a group-wide internal reporting system that is available 24 hours a day, every day of the year that connects to external contact points. The system also offers service inEnglish and accepts anonymous reports. We are working to further increase its effectiveness, and in order to ensure that executive officers and employees are fully acquainted
with it, hotline numbers and other relevant information is included on posters within each workplace and distributed to all executive officers and employees on wallet-sized cards.
In fiscal 2022, the Mizuho group received a total of 168 reports through our hotlines from both inside and outside the group, with the response status reported to members of our
Audit Committee.
Following inspection by an authorized registration institute under the Consumer Affairs Agency, our internal reporting system was recognized as operating properly and registered
to the Whistleblowing Compliance Management System (a Self-Declaration System). That system is currently offline pending an overhaul by the Consumer Affairs Agency.

Hotline for accounting and auditing
We have a special hotline to receive reports from both in and outside the company regarding inappropriate matters on accounting and financial reports, which connects to an external law office.

Integrated Report 2023

100

Customer-oriented approach

Basic approach
Mizuho regards adhering to integrity—or, in other words, acting as a trusted partner by always upholding solid moral principles—as one of the values
we pursue in realizing our stated purpose, which is to “Proactively innovate together with our clients for a prosperous and sustainable future.” We
believe that garnering customers’ trust through our customer-oriented approach will lead to garnering trust from all of our stakeholders and this will
underpin our sustainable growth.

“All of our business operations are aimed at acquiring
customers’ trust.”
With this in mind, we view integrity as a basic action principle.
Our customer-oriented approach means thoroughly considering
what will be in customers’ best interests and then pursuing this.
Minako Nakamoto

Senior Executive Officer
Group Chief Governance Officer (Group CGO)

Identifying customer needs and expectations and utilizing them in our corporate activities
Mizuho regards the customer comments that we hear through various channels as a valuable asset in our corporate activities. We work to identify customers’
diverse and constantly changing needs and expectations, improving our service quality accordingly so that we can continue to provide products and services
preferred by customers. We have created a cycle whereby the current status of group companies’ efforts is reported to Mizuho Financial Group for verificationand consultation, leading to further improvements.

Customers
Providing products
and services preferredby customers●Providing
recommendations andinformation promptly●Consulting services
which draw on ouradvanced expertise●Enhancement of oursolutions capabilities

Identification ofeach customer’s
needs andexpectations

Group companies
Direction andverification

Mizuho Financial Group (holding company)

Mizuho Financial Group●Customer
satisfaction survey●Call centers●Website customer
feedback forms, anda dedicated toll-freenumberCustomer feedback channels
Mizuho Bank, Mizuho Trust & Banking, and Mizuho Securities
garner customer feedback through multiple channels:⃝Regular customer satisfaction surveys seeking customer
views on our products, services, and recommendations, etc.
⃝C all centers responding to customer opinions andrequests⃝Website feedback forms and a dedicated toll-freenumber to gather customer opinions and requests

Reporting andsharing101

Customer feedback
systems

Executive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Data section

Appendix

Fulfilling our fiduciary duties** Fiduciary duties is a general term for the broad range of roles and responsibilities that fiduciaries are expected to fulfill when engaging in certain business activities in order to live up to the trust that is placed in them by
their customers.

We have released Policies Regarding Mizuho’s Fiduciary Duties as group-wide policies which ensure that through our asset management-related businesses weoffer products and services that genuinely serve the best interests of customers. In addition, at the holding company and relevant group companies, we haveestablished and made public specific action plans based on these policies.
For more information on Policies Regarding Mizuho’s Fiduciary Duties, please see our website:
https://www.mizuhogroup.com/binaries/content/assets/pdf/mizuhoglobal/news_release/2023/20230630release_eng_3.pdf

Our aims in fulfilling our fiduciary duties

Key Performance Indicators (KPIs)

We believe that protecting and growing financial assets to help our customers achieve
their goals by providing products and services that are truly appropriate for the customer's
interests will lead to the achievement of the customer's best interests.

We have established KPIs to confirm our level of performanceof our fiduciary duties, and we announce them periodicallyalong with the status of initiatives under our Action Plan.

At the same time, we aim to utilize the medium- to long-term growth of Mizuho so as tofurther enhance the level of customer service by expanding our business base andestablishing a brand based on customer satisfaction and trust.

Our aims in fulfilling our fiduciary duties
Fulfilling our fiduciary duties

MizuhoProvision of products and services
that are truly appropriate for thecustomer's interests

Positive and trustworthy public image
Customers

Protecting and growing financial assets
to help our customers achieve their goals

Enhancing customer satisfaction and trust

Results
MizuhoMedium- to long-term growth

Expanding customer base and strengthening our brand

Key Performance Indicators (KPIs)● Balance of assets under management from investment products● Number of customers using our investment products● Ratio of customers receiving different percentage ranges of● Number of personnel with professional qualifications● Number of funds with a rating of 4 stars or higher● TOPIX component ratio of the companies involved in our

engagement activities● Number of publicly offered investment trusts in different
balance ranges● Average balance per publicly offered investment trust● Number of website views● Number of participants enrolled in financial and economic
education courses

returns for investment trusts● Customer satisfaction surveys● Number of funds which have received awards● Survey of satisfaction among investment trust companies● Ratio of customers receiving different percentage ranges ofreturns for foreign currency-denominated insurance products● Average holding period for publicly offered investment trusts● Balance of Asset Management One assets● Balance of asset formation-focused products● Balance of pension trust assets● Balance of publicly offered investment trusts underadministration*In addition to the Key Performance Indicators listed above, the following common KPIs have also been released.
Common (1) Customer ratio by investment profit/loss from investment trust funds/fund wraps, (2) Cost vs. return of the best-selling investment products in terms of the balance of investment trust assets
under management, (3) Risk vs. return of the best-selling investment products in terms of the balance of investment trust assets under management, (4) Customer ratio by investment performance
KPIsof the foreign currency-denominated insurance products (5) Cost vs. return of the foreign currency-denominated insurance products.
Common KPIs are indicators based on the “Common Key Performance Indicators (KPIs) Comparable Across Investment Trust Distributors” published by Japan’s Financial Services Agency in June2018 and the “Common Key Performance Indicators (KPIs) Comparable Across Foreign Currency-denominated Insurance Distributors by Japan’s Financial Services Agency” in January 2022.

E arned S+ score in R&I Customer-Oriented Investment Trust Sales
Company Evaluation
Mizuho Financial Group, Mizuho Bank, Mizuho Trust & Banking, and Mizuho Securities, aspart of our efforts to obtain third-party objective evaluations of our initiatives for our fiduciary
duties, obtain assessments from Rating & Investment Information (R&I) under their CustomerOriented Investment Trust Sales Company Evaluation.
We received the latest results in January 2023. All four companies earned an S+ score forthe third consecutive year, placing them in the top tier of companies in the industry
This evaluation represents R&I’s opinion on the "customer-oriented business operations" initiatives of sales companies engaged in the investment trust sales business, and is not a statement of fact. The information used by R&I
in conducting this evaluation is deemed to be reliable by R&I at its discretion, but R&I does not independently verify the accuracy of such information. In addition, R&I and others do not guarantee the accuracy and completenessof the information, and do not recommend the purchase, sale or holding of specific products or guarantee future performance. All intellectual property rights such as copyrights related to this evaluation and all other rights belong
to R&I and are prohibited from reproduction or reprinting without permission. The evaluation of Mizuho Financial Group combines the evaluations of Mizuho Bank, Mizuho Trust & Banking, and Mizuho Securities.

Integrated Report 2023

102

Stakeholder communication

Basic approach
In addition to disclosing information to our stakeholders proactively, effectively, and fairly, we strive to ensure that our corporate activities are alignedwith social expectations as well as being fair and transparent.
Through constructive dialogue, we seek to garner stakeholders’ understanding and trust, as well as to increase our corporate value, ensure overall
corporate soundness, and enhance service quality.

Stakeholders
Customers

P.101

Shareholders

P.28

Customers

Shareholders

Government
authorities

Suppliers/
competitors

Employees

Regional/local communities

Mizuho's Stakeholders

Employees

P.49

PolicyCollect customer feedback and discuss and implement proposed improvements so as to enhance service quality.
Engage in timely and appropriate disclosure and constructive dialogue to realize highly
transparent management and sustained growth.
Provide numerous opportunities for dialogue and other forms of two-way communication
between management and employees so as to realize highly transparent management
and workplaces where each employee can thrive in their work.

Regional/local
communities

As a good corporate citizen that aligns the organization’s interests with those of society,supports society, and advances in step with society, we are actively engaged in social
contribution initiatives addressing local community issues and needs.

Suppliers/competitors

Put policies in place and engage in fair and impartial business practices.

Government authorities

Engage in dialogue and activities promoting the sustained development of the finance industry.

https://www.mizuhogroup.com/sustainability/communication/mizuho

A closer look at our communication with local communities
Social contribution activities
Since 1965, Mizuho has been delivering yellow safety badges to first
graders across Japan to help them stay safe in traffic on their way toschool. Around 70.82 million badges have been given out to date. In 2023,
the 59th year of the campaign,Mizuho received a letter ofappreciation from the Japan Traffic
Safety Association at the 63rd
Central Meeting of the National
Traffic Safety Campaign as acompany cooperating in traffic
Traffic safety class at Otemachi Tower, Tokyo
safety.

Financial and economic education initiatives
In fiscal 2022, in addition to the online lessons and use of remote teachingmaterials that we bolstered during the COVID-19 outbreak, we resumed
our usual face-to-face lessons, further enhancing the responsiveness of
our financial and economic
education. Over 1,000 children took
part in our Children’s Summer
School, including both face-to-facelessons at Group sales offices andonline lessons.
Class at a branch

T O P I C

Brand communication through sports sponsorship
Mizuho uses sports sponsorship as one means of brand communication targeting a broad range ofstakeholders.
We support the Japan National Football Team, as well as national representatives of judo,
breakdancing, and para sports. In fiscal 2022, we released a TV commercial cheering on the Japan
National Football Team and held public viewings and football lessons for employees.
Football lesson for employees and their families

103

Mizuho Financial GroupData section
Eleven-year major financial data (FY2012 – 2022)…………… P.105
Review and analysis for fiscal 2022……………………………… P.107
Corporate profile………………………………………………………… P.109

Integrated Report 2023

104

Eleven-year major financial data (FY2012 – 2022)



Summary of consolidated performance
FY2012FY2013

FY2014FY2015FY2016

Consolidated gross profits

2,171.7

2,035.2

2,247.7

2,221.6

2,092.7

Net interest income

1,075.8

1,108.3

1,129.4

1,003.6

867.8

Fiduciary income

48.5

52.0

52.6

53.4

50.6

Credit costs for trust accounts

—

—

—

—

—

Net fee and commission income

507.3

560.7

593.3

607.5

603.5

Net trading income

215.0

187.4

262.9

310.5

325.3

Net other operating income

324.8

126.7

209.3

246.4

245.4

General and administrative expenses(1,244.6)(1,258.2)(1,351.6)(1,349.5)(1,467.2)

Consolidated net business profits*

912.1

744.2

876.9

852.8

663.4

Credit-related costs(111.8)

112.8

(4.6)

(30.4)(47.5)

Aggregate figures for the 2 banks(114.1)

116.6

(7.8)

(26.7)(49.3)Net gains (losses) related to stocks(82.9)

77.0

131.9

205.6

242.1

46.6

81.5

143.7

225.3

261.1

Net gains (losses) on sales of stocks
Losses on impairment (devaluation) of stocks
Equity in income from investment in affiliates(125.8)

(5.3)

(5.3)

(10.3)(4.8)(11.1)

15.4

15.0

24.2

18.8

Other

29.2

5.1

(27.5)(74.0)(101.5)

Ordinary profits

750.3

987.5

1,010.8

997.5

737.5

Net extraordinary gains (losses)(32.5)(2.2)(20.2)

10.7

46.6

Income taxes – current(50.4)(137.0)(260.2)(213.2)(196.5)– deferred
Profit(7.4)(77.9)(44.7)(69.2)

58.8

659.9

770.3

685.6

725.7

646.4

Profit attributable to non-controlling interests(99.4)(81.9)(73.7)(54.7)(42.9)

Profit attributable to owners of parent

560.5

688.4

611.9

670.9

603.5

* Consolidated gross profits – G&A expenses (excluding non-recurring losses) + Equity in income from investments in affiliates and certain other consolidation adjustments

Summary of consolidated balance sheet
FY2012

Assets

FY2013

FY2014FY2015FY2016

177,411.0

175,822.8

189,684.7

193,458.5

200,508.6

Loans and bills discounted

67,536.8

69,301.4

73,415.1

73,708.8

78,337.7

Securities

53,472.3

43,997.5

43,278.7

39,505.9

32,353.1

Liabilities

169,674.8

167,518.3

179,884.2

184,105.3

191,235.2

Deposits

84,241.9

89,055.5

97,757.5

105,629.0

120,045.2

Negotiable certificates of deposit

15,326.7

12,755.7

15,694.9

11,827.5

10,631.2

7,736.2

8,304.5

9,800.5

9,353.2

9,273.3

Total shareholders’ equity

5,174.6

5,676.2

6,131.1

6,559.9

7,001.2

Retained earnings

Net assets



1,814.7

2,315.6

2,769.3

3,197.6

3,615.4

Total accumulated other comprehensive income

752.5

781.0

2,029.9

1,607.8

1,520.9

Non-controlling interests

1,806.4

1,844.0

1,635.5

1,182.6

749.3

Financial indicators
FY2012FY2013

FY2014FY2015FY2016

Common Equity Tier 1 capital ratio (consolidated)

8.16

8.80

9.43

10.50

11.34

Tier 1 capital ratio (consolidated)

11.03

11.35

11.50

12.64

13.30

Total capital ratio (consolidated)

14.19

14.36

14.58

15.41

16.28

Net assets per share (Yen)*

229.70253.25322.86322.46335.96

Profit attributable to owners of parent per share (Yen)*

22.96

28.18

24.91

26.94

23.86

Net return on equity (consolidated)

10.99

11.65

8.60

8.37

7.27

* Mizuho Financial Group adopted the share consolidation of the shares of common stock on the basis of one post-consolidation share per ten pre-consolidation shares effective as of October 1, 2020.
Net assets per share (Yen) and Profit attributable to owners of parent per share (Yen) have been calculated under a backdated scenario in which the share consolidation was adopted at the beginning of fiscal 2019.

105

Mizuho Financial GroupExecutive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Data section

Governance for value creation

Appendix(¥ billion)
FY2017FY2018FY2019FY2020

FY2022

FY2021

1,915.3

1,812.7

2,062.2

2,198.6

2,252.4

2,278.4

807.3

762.4

733.5

905.6

993.4

960.5

55.4

55.1

58.5

55.1

60.4

58.9

—

—

—

—

—

—

614.3

610.4

619.2

687.1

740.9

751.6

275.7

297.3

391.2

388.1

287.6

334.7

162.4

87.3

259.5

162.5

169.8

172.4

(1,488.9)(1,430.8)(1,378.3)(1,414.6)(1,392.8)(1,445.2)

457.8

393.3

661.9

797.7

851.2

805.2

156.3

(19.5)(171.7)(204.9)(235.1)(89.3)

153.2(22.7)(173.7)(201.5)(303.7)(36.2)

272.0

274.8

137.1

12.1

(43.8)

86.4

288.3

305.2

153.7

56.8

29.5

98.0

(5.1)

(5.7)

(41.6)(5.8)(41.6)

(2.0)

21.4

51.2

30.3

19.9

25.4

11.8

(93.7)(74.2)(41.7)(74.8)(46.1)(52.5)

782.4

614.1

637.8

536.3

559.8

789.6

17.5

(497.8)(19.1)

115.8

44.0

(10.6)(190.1)(161.3)(150.0)(165.6)(117.3)(170.8)

(1.4)

163.8

(11.4)

(9.0)

56.6

(48.0)

608.3

118.7

457.2

477.3

543.1

560.1

(31.7)(22.1)

(8.6)

(6.3)

(12.7)

(4.6)

576.5

96.5

448.5

471.0

530.4

555.5

(¥ billion)
FY2017FY2018FY2019FY2020

FY2022

FY2021205,028.3

200,792.2

214,659.0

225,586.2

237,066.1

254,258.2

79,421.4

78,456.9

83,468.1

83,704.6

84,736.2

88,687.1

34,183.0

29,774.4

34,907.2

43,697.2

44,641.0

37,363.1

195,207.0

191,598.1

205,995.2

216,224.0

227,865.1

245,049.7

125,081.2

124,311.0

131,189.6

133,312.4

138,830.8

150,498.9

11,382.5

13,338.5

13,282.5

17,192.5

16,868.9

13,788.3

9,821.2

9,194.0

8,663.8

9,362.2

9,201.0

9,208.4

7,388.3

7,303.0

7,561.0

7,807.2

8,130.1

8,471.1

4,002.8

3,915.5

4,174.1

4,421.6

4,756.4

5,093.9

1,677.5

1,445.7

992.9

1,449.0

947.1

662.1

754.2

444.5

109.6

105.7

123.5

75.1

(%)
FY2017FY2018FY2019FY2020

FY2022

FY2021

12.49

12.76

11.65

11.63

12.46

11.80

15.44

15.94

14.52

14.37

15.00

13.91

18.24

18.85

17.25

16.87

17.53

16.05

357.41345.003,372.96

3,650.87

3,581.39

3,603.98

22.72

3.80

176.87185.75209.27219.20

6.55

1.08

5.18

5.29

5.78

6.10

Integrated Report 2023

106

Review and analysis for fiscal 2022
Summary of consolidated operating resultsProfit and loss(¥ billion)
FY2022

FY2021

Change from FY2021

Consolidated gross profits

2,278.4

2,252.4

25.9

General and administrative expenses(1,445.2)(1,392.8)(52.3)

Expenses related to portfolio problems1(96.7)(255.9)159.2

Gains on reversal of reserves for possible
losses on loans and others

7.4

20.7

(13.3)Net gains (losses) related to stocks

86.4(43.8)

130.3

Equity in income from investments in affiliates

11.8

25.4

(13.5)

Other(52.5)(46.1)(6.4)

Ordinary profits

789.6

559.8

229.7

Net extraordinary gains (losses)(10.6)

44.0(54.6)

Income before income taxes

778.9

603.8

175.0

Income taxes(218.8)(60.6)(158.1)

benefit trust recorded in the previous fiscal year.
Income taxes increased by ¥158.1 billion on a year-on-year basis to ¥218.8
billion, partly due to the elimination of the impact of the tax effect of
capital optimization of Mizuho Securities as part of financial structurereforms in the previous fiscal year.
As a result, profit attributable to owners of parent increased by ¥25.0
billion on a year-on-year basis to ¥555.5 billion.

Summary of consolidated financial position
Securities

Securities were ¥37,363.1 billion, decreasing by ¥7,277.9 billion from theend of the previous fiscal year due to a decrease in Japanese government
bonds and other factors.

Profit

560.1

543.1

16.9

Securities (consolidated) (¥ trillion)

Profit attributable to non-controlling interests(4.6)(12.7)

8.1

Profit attributable to owners of parent

555.5

530.4

25.0

Credit-related costs(89.3)(235.1)

145.8

Consolidated net business profits2

805.2

851.2

(45.9)■ Japanese government bonds■ Japanese local government bonds■ Japanese corporate bonds and short-term bonds■ Japanese stocks
43.6■ Other
34.9
15.5

1 Including reversal of [provision for] general reserve for losses on loans
2 C onsolidated gross profits − G&A expenses (excluding non-recurring losses) + Equity in income from investments
in affiliates and certain other consolidation adjustments

We recorded consolidated gross profits of ¥2,278.4 billion for fiscal
2022, an increase of ¥25.9 billion from the previous fiscal year. Thiswas mainly due to a steady performance in the customer divisions,especially overseas, although profit declined from realizing losses on
foreign bonds in the markets divisions.

2.7
2.8
0.2
13.0

General and administrative expenses increased by ¥52.3 billion on a
year-on-year basis to ¥1,445.2 billion, mainly due to an increase in
expenses as a result of currency fluctuations despite further progressin cost reductions through structural reforms.
As a result, consolidated net business profits decreased by ¥45.9
billion on a year-on-year basis to ¥805.2 billion.

Profit attributable to owners of parent

Credit-related costs decreased by ¥145.8 billion on a year-on-year basis to¥89.3 billion, mainly due to the elimination of a large provision forreserves relating to certain clients recorded in the previous fiscal year.
Net gains (losses) related to stocks increased by ¥130.3 billion on a
year-on-year basis to net gains of ¥86.4 billion, mainly due to theelimination of losses on the cancellation of bear funds intended to fix inplace unrealized gains on stocks recorded in the previous fiscal year in
addition to steady progress in the sale of cross-holding stocks.
As a result, ordinary profits increased by ¥229.7 billion on a year-on-yearbasis to ¥789.6 billion.
Extraordinary gains (losses) decreased by ¥54.6 billion on a year-on-yearbasis resulting in net losses of ¥10.6 billion, mainly due to the eliminationof a large amount of gains on cancellation of an employee retirement

107

Mizuho Financial Group

Mar. 31,
2020

12.3

13.2
3.0
3.2
0.5

25.6

21.4

Mar. 31,
2021

37.3

3.2
3.0
0.4

3.5
2.7
0.4

15.9

Consolidated net business profits

44.6

Mar. 31,2022

17.2
Mar. 31,
2023

Loans

Loans were ¥88,687.1 billion, an increase of ¥3,950.8 billion compared tothe end of the previous fiscal year, caused primarily by the increases inloans originating outside Japan, primarily in the Americas.
The aggregate loans of Mizuho Bank (MHBK) and Mizuho Trust & Banking(MHTB) was ¥90,918.5 billion, an increase of ¥4,266.5 billion compared tothe end of the previous fiscal year. For our loan balance in Japan, thebalance increased for SMEs, the Japanese government and others,
resulting in an overall increase of ¥1,119.7 billion (including an increase of¥242.7 billion in loans to the Japanese government and other suchobligors). Our loan balance outside Japan (including loans booked
offshore) increased by ¥3,146.7 billion, mainly due to an increase in loans
in the Americas.
Loan balance (MHBK + MHTB, banking book + trust banking book) (¥ trillion)■ Loan balance in Japan■ Loan balance outside Japan
86.6

85.9

84.8

90.9

25.9

23.9

26.4

29.6

58.9

62.0

60.1

61.3

Mar. 31,2020

Mar. 31,2021

Mar. 31,2022

Mar. 31,2023

Executive messages / Features

Mizuho’s value creation process

Business strategies for value creation

The aggregate deposits in Japan of MHBK and MHTB increased by¥6,651.3 billion compared to the end of the previous fiscal year, due tofactors such as an increase in deposits by corporations.
Deposits in Japan (MHBK + MHTB, banking book + trust banking book) (¥ trillion)■ Corporations■ Financial/government institutions

111.0

106.8

112.5

119.1
9.2

53.3

54.5

55.5

60.0

45.0

47.3

47.6

48.0

Mar. 31,2021

Mar. 31,2022

Total net assets

Net assets amounted to ¥9,208.4 billion, increasing by ¥7.4 billion
compared to the end of the previous fiscal year.

Non-performing loans (NPLs)

The aggregate NPL balance of MHBK and MHTB was ¥1,047.4 billion, adecrease of ¥38.2 billion compared to the end of the previous fiscal year,
and the NPL ratio was 1.00%. Both the NPL balance and ratio decreased.
Non-performing loans based on the Banking Act and Financial
Reconstruction Act of Japan (MHBK + MHTB, banking book + trust
banking book)■ Claims for special attention (restructured claims)■ Claims for special attention (claims delinquent for over three months)■ Claims with collection risk
■ Claims against bankrupt and substantially bankrupt obligors
NPL ratio (%)
1.09
0.82
0.69
0.6

Mar. 31,2020

1.0

BIS capital

Common Equity Tier 1 capital was ¥8,315.5 billion, an increase of ¥248.2
billion compared to the end of the previous fiscal year.

Risk assets

Risk-weighted assets were ¥70,434.1 billion, an increase of ¥5,703.7
billion compared to the end of the previous fiscal year.

BIS capital ratio

The consolidated total capital ratio, consolidated Tier 1 capital ratio, andconsolidated Common Equity Tier 1 capital ratio as of the end of March2023 were 16.05%, 13.91%, and 11.80%, respectively.
Mar. 31,2023

Note: Some of the deposit balances that were previously classified as “Corporations” have been reclassified as“Financial/government institutions”.

Appendix

11.0

8.5

9.1

Mar. 31,2020

Data section

BIS capital ratio and shareholder returns

Deposits

Deposits were ¥150,498.9 billion, an increase of ¥11,668.1 billion
compared to the end of the previous fiscal year.

■ Individuals

Governance for value creation(¥ trillion)

BIS capital ratio (consolidated)(¥ billion)

March 31, 2023

March 31, 2022

Common Equity Tier 1 capital (CET1)

8,315.5

8,067.2

248.2

Additional Tier 1 capital

1,487.8

1,646.0(158.1)(134.8)Change from March 31, 2022

Tier 2 capital

1,503.5

1,638.3

Total capital

11,306.9

11,351.6(44.7)

Risk-weighted assets

70,434.1

64,730.4

5,703.7

Total capital ratio (consolidated)

16.05%

17.53%(1.48%)

Tier 1 Capital ratio (consolidated)

13.91%

15.00%(1.09%)

Common Equity Tier 1 capital ratio (consolidated)

11.80%

12.46%(0.66%)

Shareholder returns

The Board of Directors approved payment of an annual cash dividend of¥85 per share of common stock for fiscal 2022, an increase of ¥5 fromfiscal 2021.
Annual cash dividend per share of common stock (¥)
85
80

1.00
1.0

75

75

FY2019FY2020

FY2021

FY2022

Dividend payout ratio 42%

40%

38%

38%

0.7

Mar. 31,2021

Mar. 31,2022

Mar. 31,2023*Reflects the effects of the share consolidation conducted in October 2020.

Integrated Report 2023

108

Corporate profile (As of March 31, 2023)

Company name:

Mizuho Financial Group, Inc

Stock listing (code):Tokyo Stock Exchange (8411)

Sustainability

New York Stock Exchange (MFG)

Gain insights into our approach to
Location of head office: 1-5-5, Otemachi, Chiyoda-ku, Tokyo 100-8176, Japan
Representative:

Masahiro Kihara, President & Group CEO

Capital:¥2,256.7 billion

Issued shares:

2,539,249,894 shares

sustainability.

www.mizuhogroup.com/sustainability

Financials and Presentations
Access reports, presentations,

Number of employees: 2,270

news, and other investor(Total number of employees on a consolidated basis:

resources and get details on

51,212)upcoming events.
www.mizuhogroup.com/investors/materials

Date of establishment: January 8, 2003
Websitewww.mizuhogroup.com

Website ratings

Internet IR
優良賞

2022

Gold Award in the Gomez IR Site Ranking 2022
(Mizuho Financial Group)Award of Excellence in the Daiwa IR 2022 Internet
IR Awards(Mizuho Financial Group)

Best Website in the Nikko Investor Relations Fiscal 2022
All Japanese Listed Companies’ Website Ranking(Mizuho Financial Group)

Excellent Company in the Gomez ESG Site Ranking 2022
(Mizuho Financial Group)Awards and certifications, etc.

Platinum Kurumin(Five group companies*)

Gold rating in PRIDE Index for
LGBT+-related initiatives(Five group companies*)

Best Workplace Accreditationin the D&I Awards 2022
(Five group companies*)* Mizuho Financial Group, Mizuho Bank, Mizuho Trust & Banking, Mizuho Securities, and Mizuho Research & Technologies

ESG indices which include Mizuho (as of June 2023)

109

Mizuho Financial Group

4.5 stars in the Nikkei Smart WorkManagement Survey(Mizuho Financial Group)

Certified Health & Productivity Management
Outstanding Organization 2023
(Large enterprise category)(Five group companies*)

Executive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Data section

Appendix

ESG indices selected by the GPIF
General indices

Themed indicesParticipation in international initiatives, etc.

United Nations Global Compact(Mizuho Financial Group)

UNEP Finance Initiative (UNEP FI)(Mizuho Financial Group)

Principles for Responsible Banking(Mizuho Financial Group)

Principles for Responsible Investment (PRI)(Mizuho Trust & Banking and Asset Management One)Principles for Financial Action towards a Sustainable Society(Mizuho Bank)

Equator Principles(Mizuho Bank)

Task Force on Climate-related Financial Disclosures (TCFD)(Mizuho Financial Group)

Partnership for Carbon Accounting Financials(Mizuho Financial Group)

CDP Climate Change Program(Mizuho Financial Group)

Net-Zero Banking Alliance(Mizuho Financial Group)
Net Zero Asset Managers initiative(Asset Management One)

Climate Action 100+
(Asset Management One)GX League(Mizuho Financial Group)

Cross-Sector Biodiversity Initiative (CSBI)(Mizuho Bank)

Taskforce on Nature-related Financial Disclosures Forum(Mizuho Financial Group and Mizuho Research &Technologies)

30% Club Japan(Mizuho Financial Group)

Human Capital Management Consortium(Mizuho Financial Group and Asset Management One)All figures contained in this report are calculated using accounting principles generally accepted in Japan (“Japanese GAAP”).
Forward-Looking Statements
This Integrated Report contains statements that constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, including estimates, forecasts, targets and plans. Such forward-looking
statements do not represent any guarantee by management of future performance.
In many cases, but not all, we use such words as “aim,” “anticipate,” “believe,” “endeavor,” “estimate,” “expect,” “intend,” “may,” “plan,” “probability,” “project,” “risk,” “seek,” “should,” “strive,” “target” and similar expressions in relation to us or ourmanagement to identify forward-looking statements. You can also identify forward-looking statements by discussions of strategy, plans or intentions. These statements reflect our current views with respect to future events and are subject to risks,
uncertainties and assumptions.
We may not be successful in implementing our business strategies, and management may fail to achieve its targets, for a wide range of possible reasons, including, without limitation: incurrence of significant credit-related costs; declines in the value of our
securities portfolio; changes in interest rates; foreign currency fluctuations; decrease in the market liquidity of our assets; revised assumptions or other changes related to our pension plans; a decline in our deferred tax assets; the effect of financialtransactions entered into for hedging and other similar purposes; failure to maintain required capital adequacy ratio levels; downgrades in our credit ratings; our ability to avoid reputational harm; our ability to implement our medium-term business plan, realize
the synergy effects of “One Mizuho,” and implement other strategic initiatives and measures effectively; the effectiveness of our operational, legal and other risk management policies; the effect of changes in general economic conditions in Japan andelsewhere; and changes to applicable laws and regulations. Further information regarding factors that could affect our financial condition and results of operations is included in “Item 3.D. Key Information—Risk Factors,” and “Item 5. Operating and Financial
Review and Prospects” in our most recent Form 20-F filed with the U.S. Securities and Exchange Commission (“SEC”) and our report on Form 6-K furnished to the SEC on July 31, 2023, both of which are available in the Financial Information section of our
website at www.mizuhogroup.com and also at the SEC’s website at www.sec.gov.
The content of this Integrated Report was prepared prior to the announcement of our financial results for the first quarter of fiscal 2023.
We do not intend to update our forward-looking statements. We are under no obligation, and disclaim any obligation, to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as may berequired by the rules of the Tokyo Stock Exchange.

Integrated Report 2023

110

Group companies (As of March 31, 2023, except for the rating information and each company's network, which are as of June 30, 2023)
Mizuho Financial Group

Rating information
R&I

JCR

Moody’s

S&P

Fitch

Date of establishment January 8, 2003

Mizuho Financial Group

A＋

AA－

A1

A－

A－

CapitalMizuho Bank

AA－

AA

A1

A

A－

Mizuho Trust & Banking

AA－

AA

A1

A

A－

Mizuho Securities

AA－

AA

A1

A

A－

Reference: Japanese Government

AA＋

AAA

A1

A＋

A

¥2,256.7 billion

Location of head office 1-5-5, Otemachi, Chiyoda-ku, Tokyo 100-8176, Japan
Representative

Masahiro Kihara, President & Group CEO

Number of employees 2,270
Websitewww.mizuhogroup.com

Mizuho Bank
Date of establishment July 1, 2013
Capital¥1,404.0 billion

Location of head office 1-5-5, Otemachi, Chiyoda-ku, Tokyo 100-8176, Japan
Representative

Masahiko Kato, President & CEO

Number of employees 24,652
Network in Japan

461

Network outside Japan 82
Websitewww.mizuhogroup.com/bankMizuho Trust & Banking
Date of establishment March 12, 2003
Capital¥247.3 billion

Location of head office 1-3-3, Marunouchi, Chiyoda-ku, Tokyo 100-8241, Japan
Representative

Otemachi Tower

Kei Umeda, President & CEO

Number of employees 2,921
Network in Japan

59

Network outside Japan 1
Websitewww.mizuhogroup.com/trust-and-banking

Mizuho Securities
Date of establishment January 4, 2013
Capital¥125.1 billion

Location of head office Otemachi First Square, 1-5-1, Otemachi, Chiyoda-ku,
Tokyo 100-0004, Japan
Representative

Yoshiro Hamamoto, President & CEO

Number of employees 6,864
Network in Japan

225

Network outside Japan 19
Website111

Mizuho Financial Group

www.mizuhogroup.com/securities

Mizuho Marunouchi Tower

Executive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Data section

AppendixMizuho Research & Technologies 
As a core group company, Mizuho Research & Technologies provides clients and society withnew added value.
Mizuho Research & Technologies holds wide-ranging research and analysis capabilities coveringsocial and economic trends as well as the challenges our clients face, advisory and consulting
capabilities to solve problems, advanced technical knowledge of digital technologies, andstrength in IT system design and implementation based on an extensive experience and trackrecord. Through the fusion of these capabilities, Mizuho Research & Technologies is able to offer
a full range of services and solutions to meet our clients’ true needs.

Date of establishment April 1, 2021
Capital¥1,627 million
Location of head office 2-3, Kanda-Nishikicho, Chiyoda-ku, Tokyo
Representative
Masatoshi Yoshihara, President & CEO
Number of employees 3,598
Network outside Japan 3
Websitewww.mizuhogroup.com/information-and-research

Asset Management One 
Asset Management One is an asset management company in which Mizuho andDai-ichi Life Holdings both have equity holdings. Asset Management One
collaborates with its offices in Europe, the US, and Asia to offer investment
trust products to individuals and corporations, as well as provide investment
advisory services to customers including Japanese and overseas pension funds.

Date of establishment October 1, 2016
Capital¥2,000 million
Location of head office Tekko Building, 1-8-2, Marunouchi, Chiyoda-ku, Tokyo
Representative
Noriyuki Sugihara, President & CEO (Appointed on April 1, 2023)
Number of employees 813
Network outside Japan 4
Websitewww.am-one.co.jp/english/

Mizuho Innovation Frontier4 Mizuho Innovation Frontier is a venture capital firm with the purpose ofadvancing Mizuho’s business and technology developments. Mizuho Innovation
Frontier pursues more than just simple financial return; it encourages thecreation of new value through selective investments that are strategically
relevant to Mizuho. It also actively facilitates the realization of businessstrategies conceived by Mizuho employees in in-house creation programs.

Date of establishment April 3, 2023
Capital¥100 million
Location of head office 1-5-5, Otemachi, Chiyoda-ku, Tokyo
Representative
Junichi Ikeda, President & CEO
Number of employees 12

Mizuho Americas Mizuho Americas is a US bank holding company with Mizuho’s primary US-basedbanking, trust banking, and securities entities under it. To further increase its
competitiveness in the US, which is the world’s largest financial market, Mizuho
Americas is proactively strengthening its governance framework, and, while promoting
the collaboration of its banking, trust banking, and securities operations, it is conducting
management and other activities that are necessary for expanding its profit base.

Date of establishment June 20, 2016
Capital$3,820 million
Location of head office 1271 Avenue of the Americas, New York, NY 10020, USA
Representative
Shuji Matsuura, CEO
Websitewww.mizuhogroup.com/americas/

Custody Bank of Japan 
As an asset administration bank representing Japan, the Custody Bank of Japan
handles overall management operations for securities and other financial
instruments entrusted by clients. While providing stable, high-quality services
as a part of the financial infrastructure, the Custody Bank of Japan is aiming tobecome the best partner for clients’ diverse needs.

Date of establishment July 27, 2020
Capital¥51,000 million
Location of head office Harumi Island Triton Square Tower Z, 1-8-12, Harumi, Chuo-ku, Tokyo
Representative
Masahiro Tsuchiya, President & CEO
Number of employees 1,875
Websitewww.custody.jp/english/

MI Digital Services MI Digital Services is a joint venture between Mizuho and IBM Japan thatprovides high-quality and highly efficient system management services byintegrating its expertise in operating core IT systems with cutting-edge
technologies.

Date of establishment June 30, 2020
Capital¥20 million
Location of head office IBM Japan Headquarters 11F, 19-21, Nihonbashi,
Hakozaki-cho, Chuo-ku, Tokyo
Representative
Kazuo Fujiwara, President & CEO
Number of employees 693

Mizuho Leasing5 Mizuho Leasing leverages its expertise in equipment and properties, in-depth understanding ofcommercial distribution, and sophisticated financial knowledge to provide a wide range of financial
and business services.
Through combining its new business strategy to increase the sophistication of client businessmodels, its initiatives in core business areas of the Mizuho group, and its strategic initiatives incooperation with alliance partners, the firm seeks to capture increased business opportunities insideand outside Japan, achieve joint value creation with clients, and develop new business areas.

Date of establishment December 1, 1969
Capital¥26,088 million
Location of head office 1-2-6, Toranomon, Minato-ku, Tokyo
Representative
Akira Nakamura, President & CEO (Appointed on April 1, 2023)
Number of employees 814
Network outside Japan 12
Websitewww.mizuho-ls.co.jp/en/

Notes: 1. The representatives of each company have representation rights.
2. The number of employees does not include each company’s employees dispatched outside each company, while it includes employees dispatched to each company from other organizations. This
figure also includes overseas local staff but excludes executive officers and temporary employees.
3. Mizuho’s network consists of our Head Office and branches in Japan, and branches, representative offices, and overseas subsidiaries outside Japan.
4. Mizuho Innovation Frontier was established on April 3, 2023 to serve as a special investment subsidiary of Mizuho Financial Group.
5. The establishment date indicated for Mizuho Leasing is based on the date the leasing business was set up.
Integrated Report 2023

112

Three lines of defense
In accordance with the “three lines of defense” approach in the Corporate Governance Principles for Banks released by the Basel Committee on Banking
Supervision and the definitions and roles outlined below, we ensure appropriate and effective risk governance through autonomous controls (first line;
business lines) and a check-and-balance system (second line; Department(s)in charge of risk management/compliance), along with an independent third line ofinternal auditing (Internal Audit Group). In addition, Mizuho Financial Group (holding company) sets group strategies and allocates resources, monitoring theautonomous controls in the first line at core group companies1 in order to strengthen the system providing appropriate responses.

Third line

Second line

First line

Our definition of the three lines of defense and their roles
Autonomous control function
The first line-of-defense involves daily operations based on the rules, procedures, and risk appetite, and has a primary responsibility for risks and compliance matters accompanying the conduct ofbusiness as a risk owner, and for performing autonomous control activities (to identify, assess, and manage/control risks and compliance matters).

Risk management and compliance function
The second line-of-defense oversees (monitors), measures, and assesses the first line´s autonomous control activities, and is responsible for establishing and implementing basic policies for risk
management and compliance.

Internal audit function
The third line-of-defense is independent of the first and second lines and involves assessment and examination of the operations of the first and second lines, and is responsible for providing
advice and guidance to settle issues.

Our risk management and compliance framework

Mizuho Financial Group
3rd
line

Internal Audit Group

Core group companies*
Basic policies
Submit/report

3rd
line

Internal audit

2nd
line

Department(s)in charge ofrisk management/complianceInternal audit
Internal
audit

Monitoring

1st
line

Internal Audit Group

In-house companies/unitsFirst line-of-defense autonomous control

Basic policies
Submit/report

Report regarding
the first line-of-defense
autonomous control
Formulate strategies,
allocate business resources, etc.

2nd
line

Department(s)in charge ofrisk management/complianceInternal
audit

Monitoring

1st
line

Divisions/unitsFirst line-of-defense autonomous control* Of the core group companies, Mizuho Bank, Mizuho Trust & Banking, Mizuho Securities, Mizuho Americas, and Mizuho Research & Technologies conduct risk management and compliance based on the “threelines of defense” concept.

113

Mizuho Financial GroupExecutive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Data section

Appendix

Risk management structureManagement of top risks
We have identified “top risks” (i.e., risks that are recognized to havea major potential impact on the Mizuho group) as follows, while
taking into consideration factors such as changes in the internal andexternal business environment.
In fiscal 2023, understanding that interest rate hikes in Japanaccompanying changes in monetary policy could lead to an
economic slowdown and to an expansion of concerns regarding
fiscal policy, we added “a shift in monetary policy and growing fiscal
concerns” as a top risk.
In addition, considering the risk that the prolongation of high inflationin the US and Europe and the continuation of interest rate hikes
could cause a worsening of credit and spill over to a worsening of
the foreign currency procurement environment and also the further

heightening of geopolitical risk, for “high inflation and global
recession” and “accelerating global division,” which were identified
as top risks in fiscal 2022, the risk scenario was revised to“continuation of high inflation and spillover to credit risk” and “global
decoupling and growing geopolitical risks.”
We also revised our risk scenarios for other top risks upon
considering factors such as changes in the business environment.
For designated top risks, we have decided on additional risk control
measures, including measures for preventing the designated top
risks and follow-up responses, and we are monitoring the status ofrisk control throughout the fiscal year and reporting to the Risk
Committee and Board of Directors.
(Please see p. 96 for more on our management of top risks.)

Top risks
Risk event
Continuation of high inflation andspillover to credit risk

A shift in monetary policy andgrowing fiscal concerns

Escalating US-China conflict andsluggish Chinese economy

Global decoupling and growing
geopolitical risks

Worsening impact of climatechangeIT system failures

Cyberattacks

Money laundering / Financing ofterrorism
Improper acts and omissions byexecutive officers/employees

Stagnation of sustainable growth
due to talent shortages

Changes in the competitiveenvironment

Risk scenario• Inflation remaining high with the prolongation of wage increases and high resource prices,and pressure on the economy due to continuation of interest rate hikes in the US and Europe• Worsening of corporate cash flow and increasing credit-related expenses due to increased
interest payment burden and the stricter lending stance of financial institutions• Expanding valuation losses on bonds and increasing foreign currency procurement costs
caused by overseas interest rate hikes• Contraction in housing and capital investment, pushing down the economy, caused byincrease in interest rates in Japan accompanying a shift in monetary policy, and increase incredit-related expenses due to worsening of corporate performance• Increase in interest rates in Japan, reminding people of higher interest payments on
government bonds and increasing fiscal concerns• US-China conflict reflecting economic security and human rights and the Taiwan situation,
restraining investment in China and nearby regions and obstructing continuous economic
growth• Credit-related expenses increasing through worsening corporate performance with thestagnation of the Chinese economy due to the delayed response to the prolongation of thereal estate market slump, excessive debt, and other structural problems. On the other hand, asudden recovery of the Chinese economy might cause a sharp increase in resource prices.
• Acceleration of formation of camps based on values from the prolongation of the conflict overUkraine• Acceleration of global decoupling with the formation of economic blocs and intensified
confrontation leading to heightened military tension in each region of the world• Downward pressure on growth potential of the global economy and profitability of companies
due to disruption of supply chains and obstacles to the international business development of
global companies• Increasing climate-related risks due to delayed response to climate change by each country
and company, the return to coal-fired thermal power, and the loss of natural capital, leading
to stricter regulation and supervision of financial institutions• Loss in corporate value due to increased criticism from insufficient efforts by the Mizuho
group, while emergence of transition and physical risk result in higher future credit-related
expenses• System failures resulting from factors such as human negligence, hardware failures, ordisasters causing wide-spread inconvenience or disadvantage to customers and damaging
trust, leading to the loss of business opportunities• Attacks by specific countries for intelligence activities or sabotage and by criminal or terrorist
organizations for monetary demands that result in suspension of services, exposure of
information, and/or unauthorized fund transfers, causing wide-spread inconvenience or
disadvantage to customers and damaging trust, leading to the loss of business opportunities• Financial services being misused for criminal acts, resulting in criticism from the international
community, damaging trust with customers and with other financial institutions, and leading
to the loss of global business opportunities• Damage to trust and loss of business opportunities stemming from criticism accompanying
the occurrence in or outside Japan of legal/regulatory infractions, business operations thatare not customer-oriented and other improper acts and omissions that is not consistent withthe social responsibility and duty sought by the Mizuho group, or out of line with social norms• Stagnation in strategy implementation and deterioration in capacity for providing services
due to difficulties in securing employees and employee development with the increased
mobility in the labor market accompanying diversification of career aspirations and increased
wages• Changes in the competitive environment due to the emergence of new services along withtechnological innovation and deregulation, the entry of companies from other industries, andthe heightened orientation toward interest rates and awareness of sustainability, damaging
the Mizuho group’s business foundations

Primary risk control measures• Credit risk: Analyze the credit-risk impact from changes in monetary policy in Japan and an economic
slowdown in the US, and conduct trial calculations of the impact when geopolitical risk emerges.
• Market risk: Flexibly review the monitoring structure based on interest rate increases and other market
developments, and conduct trial calculations of the impact of changes in domestic monetary policy.
• Foreign currency liquidity risk: Reinforce medium- to long-term and other stable procurement, and examine
response measures to the emergence of geopolitical risk.

• Advance improvement of the management structure through risk importance assessment, etc.
• Implement risk control of the carbon-related sector• Monitor regulatory trends, trends at other banks, and other main changes in the external environment• Implementation of inspections and measures to prevent system failures, strengthening of response
capabilities when failures occur, and upgrading of internal control systems• System risk monitoring from multifaceted perspectives• Advance the upgrading of the group’s global cybersecurity management structure by identifying
vulnerabilities, strengthening supervision systems, strengthening incident response capabilities, andimproving the governance system• Improve the ability to grasp risk conditions, strengthen risk mitigation measures for high-risk customers,
products, and services, strengthen the control system for offices outside Japan, and otherwise promoteupgrading of the structure for countermeasures to money laundering, etc.
• Analyze the causes when an incident occurs and formulate improvement measures• Enhance predictive management toward reducing instances of misconduct• Promote efforts to improve employees’ sense of fulfillment through reducing long working hours and careerdevelopment support, and strengthen recruitment from outside the company• Build a structure toward upgrading the management of human capital risk
• Clarify “DX focus areas” considering the Mizuho group’s strengths and customer needs• Prepare the groundwork to advance DX including the formulation of human resources development programsand examinations of the use of generative AI

Note: The risks described here are only some of the possible risks we are aware of. For more comprehensive information on the Mizuho group’s risks, please refer to the annual securities report,
Form 20-F, and other related documents.

Integrated Report 2023

114

Comprehensive risk management
Comprehensive risk management systems
At Mizuho, under the basic approach to the implementation of our
Risk Appetite Framework (RAF), we construct a comprehensive risk
management structure grasping and assessing overall risk andrestricting risk to within a range that is permissible as management.
Under the comprehensive risk management structure, we classify
and manage the risks that arise in our businesses according to thevarious kinds of risk, including credit risk, market risk, liquidity risk,
and operational risk. Moreover, our group companies manage risk
appropriately according to the nature of their risk, such as
settlement risk, trust banking operations risk, and similar.

The Risk Management Committee chaired by the Group Chief Risk
Officer (Group CRO) which meets monthly provides integrated
monitoring and management of the overall risk for the Mizuho
group. The Group CRO reports the risk management situation to theBoard of Directors, the Risk Committee, and the Executive
Management Committee regularly and as necessary. In addition,
Mizuho Financial Group receives reports and applications forapproval concerning the risk management situation from our coregroup companies* and gives them appropriate instructions
concerning risk management as necessary.
* Mizuho Bank, Mizuho Trust & Banking, Mizuho Securities, Mizuho Research &We have also put in place a system whereby each Mizuho Financial
Group company conducts risk management appropriate for thecompany's business operations and scope and status of risk, andMizuho Financial Group, as the holding company, oversees risk
management across the whole group.

Technologies, Asset Management One, Mizuho Innovation Frontier, Mizuho
Americas, Custody Bank of Japan, MI Digital Services, and Mizuho Leasing.

Risk capital allocation
At Mizuho, under the risk capital allocation framework, we
endeavor to obtain a clear grasp of the group’s overall risk
exposure and implement measures to make sure this exposure is
within limits that are acceptable.
More specifically, we allocate risk capital to our core groupcompanies (including their subsidiaries) to control risk within thelimits set for each company. We also control risk within acceptable
limits by working to ensure that the overall risk on a consolidated

basis does not exceed our financial capacity. To ensure the ongoing
financial soundness of Mizuho Financial Group and our core groupcompanies we regularly monitor the manner in which risk capital isbeing used in order to obtain an accurate grasp of the risk profile
within this framework. Reports are also submitted to the board of
directors and other committees of each company. Risk capital isallocated to Mizuho Bank, Mizuho Trust & Banking, Mizuho
Securities, and Mizuho Americas by risk category, and is further
allocated within their respective business units.

■ Framework for allocating risk capital
ExamplesMizuho Financial Group

Setting of upper limits based on risk capital and exercise ofcontrol over various risks

Risk exposure ofcore group companies*

Mizuho Bank

CapitalMizuho Bank

Risk exposure of the group

Mizuho Trust & Banking
Mizuho Securities

Allocated risk capital

Financial strengthof the group

Credit risk
Market risk
Stock price risk
Operational risk
Group companies

Mizuho Americas
Mizuho Trust & Banking
Mizuho Securities
Other risks
Mizuho Americas*Includes the risk exposure of group companies that are managed by core group companies

115

Mizuho Financial Group

Allocatedtobusinessunits

Executive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Data section

Appendix

Credit risk management
Basic approach
We define credit risk as the Mizuho group’s exposure to the risk oflosses that may be incurred due to a decline in, or total loss of, thevalue of assets (including off-balance-sheet instruments), as aresult of deterioration in obligors’ financial position.

Mizuho Financial Group manages credit risk for the group as awhole. Specifically, Mizuho Financial Group establishes the group’s
fundamental credit risk policy to manage major group companies,
and monitors and manages the credit risks of the group as a whole.

Credit risk management structure
Our Board of Directors determines the Mizuho group’s basic
matters pertaining to credit risk management. In addition, the Risk
Management Committee broadly discusses and coordinates
matters relating to basic policies and operations in connection withcredit risk management and matters relating to credit risk
monitoring for the Mizuho group. Under the control of the Group
CRO, the Credit Risk Management Department and the Risk
Management Department jointly monitor, analyze, and submit
suggestions concerning credit risk and formulate and execute plans
in connection with basic matters pertaining to credit risk
management.
Our principal banking subsidiaries and other core group companies
manage their credit risk according to the scale and nature of their
exposures in line with basic policies set forth by Mizuho Financial
Group. The board of directors of each company determines key
matters pertaining to credit risk management.

The Balance Sheet & Risk Management Committee and the Credit
Committee, each of which is a business policy committee of ourprincipal banking subsidiaries, are responsible for discussing andcoordinating overall management of their individual credit portfolios
and transaction policies towards obligors. The respective Chief Risk
Officers (CRO) of our principal banking subsidiaries are responsible
for matters relating to planning and implementing credit risk
management. The credit risk management departments of ourprincipal banking subsidiaries are in charge of planning andadministering credit risk management and conducting credit risk
measuring and monitoring. Such departments regularly present
reports regarding their risk management situation to Mizuho
Financial Group. The credit departments of our principal banking
subsidiaries determine policies and approve/disapprove individualtransactions in terms of credit review, credit management andcollection from obligors in accordance with the lines of authority
set forth respectively by our principal banking subsidiaries. In
addition, our principal banking subsidiaries have establishedinternal audit groups that are independent of the businessdepartments in order to ensure appropriate credit risk management.

Method of credit risk management
We have adopted two different but mutually complementary
approaches to credit risk management. The first approach is“individual credit management,” in which we manage the process
for each individual transaction and individual obligor from execution
until collection, based on our assessment of the credit quality of theobligor. Through this process, we curb losses in the case of a credit
event. The second is “credit portfolio management,” in which weutilize statistical methods to assess the potential for losses related
to credit risk. Through this process, we identify credit risks andrespond appropriately.

Individual credit management
1. Credit codes
The basic code of conduct for all of our executive officers andemployees engaged in the credit business is set forth in our credit
code. Seeking to fulfill the bank’s mission and social responsibilities,
our basic policy for credit business is determined in light offundamental principles focusing on public welfare, safety, growth,and profitability.
2. Internal rating system
One of the most important elements of the risk management
infrastructure of our principal banking subsidiaries is the use of aninternal rating system that consists of credit ratings and pool
allocations. Credit ratings consist of obligor ratings which represent
the level of credit risk of the obligor, and transaction ratings which
represent the possibility of ultimately incurring losses related toeach individual claim by taking into consideration the nature of any
collateral or guarantee and the seniority of the claim.
In principle, obligor ratings apply to all obligors and are subject toregular reviews at least once a year to reflect promptly the fiscal
period end financial results of the obligors, as well as special
reviews as required whenever an obligor’s credit standing changes.
This enables our principal banking subsidiaries to monitor bothindividual obligors and the status of the overall portfolio in a timely
fashion. Because we consider obligor ratings to be an initial phaseof the self-assessment process regarding the quality of our loans

and off-balance-sheet instruments, such obligor ratings are closely
linked to the obligor classifications and are an integral part of theprocess for determining the provision for credit losses on loans andcharge-offs in our self-assessment of loans and off-balance-sheet
instruments. (Please refer to the chart on the next page regarding
the connection between obligor ratings, definition of obligor
classifications of self-assessments, non performing loans based on
the Banking Act and the Financial Reconstruction Act).
To assign obligor ratings, we have a quantitative evaluation system(rating model) in place to enable proper assessment of an obligor’s
credit standing. The system gives a quantitative rating to an obligor
based on obligor-specific characteristics such as type of business(corporation or individual) and geography (in Japan or outside
Japan). We categorize our rating models for companies in Japan
into those for large companies and those for small and mediumsized companies. The former consist of 13 models according toindustry-specific factors, while the latter consist of three models.
For companies outside Japan, we utilize nine models.
These were developed by the Credit Risk Management Department
based on a statistical methodology and approved by the CRO.
Pool allocations are applied to small claims that are less than aspecified amount by pooling obligors and claims with similar risk
characteristics and assessing and managing the risk for each such

Integrated Report 2023

116

■	Connection between obligor ratings, definition of obligor classifications of self-assessments, non performing loans based on the Banking Act ("BA")and the Financial Reconstruction Act ("FRA")
Definition of
obligorclassifications ofself-assessment

Obligorratings(majorcategory)

Definition of ratings

A1—A3

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

B1—B2

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

C1—C3

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

D1—D3

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

Normalobligors

E1

Watch
obligors

Intensive
control
obligors

Substantiallybankrupt
obligors

Bankrupt
obligors

E2

R

F1

G1

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

Category II

Category III

Category IV(non-collateralized)

All credit given
to normal
obligors.

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

H1

Category I(non-categorized)

Normal claims

Credit given to
watch obligors
other than thoseincluded in
category I.

Credit to obligors
which haspledgedcollateral or iscovered byguarantees,considered ofhigh quality,
such as deposit
collateral.

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

pool. Our principal banking subsidiaries efficiently manage credit
risk and credit screening by dispersing a sufficient number of small
claims within each pool.
Our principal banking subsidiaries generally review theappropriateness and effectiveness of our approach to obligor
ratings and pool allocations once a year in accordance withpredetermined procedures, which is audited by the Internal Audit
Group.

Non performing loans based on
the BA and the FRA

Claims for
specialattention

Credit given to
intensive control
obligors otherthan thoseincluded in
category I andcategory II.
Credit to obligors
which is coveredby generalcollateral, suchas real estateand guarantees.

The difference
between theassessed value
and market valueof collateral on
credit to bankrupt
and substantiallybankrupt obligors(i.e., the portionof loans forwhich final
collection
problems orlosses are
anticipated).

Restructured
loans
Loans past due
for 3 months or
moreClaims with collection risk

Credit tobankrupt andsubstantiallybankrupt
obligors, otherthan those in
category I,
category II andcategory III(credit that isjudged to be
unrecoverable orwithout value).

Claims against bankrupt andsubstantially bankrupt obligors

Mizuho Financial Group defines a Restructured Loan as a loan
extended to a Watch Obligor when the following conditions are met:
an obligor is experiencing financial difficulties and lending
conditions were amended favorably to the obligor such as allowinginterest rate reduction, postponement of principal repayment/interest payment, debt forgiveness, etc.
An overdue loan is defined as a loan for a Watch Obligor of which
the loan principal or interest is overdue for three months or more
following the contractual payment date.

■ Methods for provision for credit losses on loans and off-balance-sheet instruments and charge-offs
Normal obligors

Calculate the value of estimated loss based on the probability of failure over the coming year for loans by obligor rating and appropriate it for the general provision for credit
losses on loans and off-balance-sheet instruments.

Watch obligors

Calculate the estimated loss on loans based on the probability of failure over the next three years and appropriate it for the general provision for credit losses on loans andoff-balance-sheet instruments. Further, in regard to special attention obligors, for obligors with large claims more than a certain amount, if the cash flow from the return ofprincipal and interest payments can reasonably be estimated, set up a provision for credit losses on loans and off-balance-sheet instruments under the DCF method.

Intensive control
obligors
Substantiallybankrupt obligors
Bankrupt obligors

117

Mizuho Financial Group

Provide an amount for specific provision for credit losses on loans and off-balance-sheet instruments as calculated by one of the following methods after deducting amounts
anticipated to be recoverable from the sale of collateral held against the claims and from guarantors of the claims: a) an amount calculated based on the overall ability of theobligor to pay, or b) the estimated loss calculated on the basis of the balance and the probability of failure over the next three years.
Further, for obligors with large claims more than a certain amount, if the cash flow from the return of principal and interest payments can reasonably be estimated, set up aprovision for credit losses on loans and off-balance-sheet instruments under the DCF method.
Provide the entire balance after deducting amounts anticipated to be recoverable from the sale of collateral held against the claims and from guarantors of the claims for
specific provision for credit losses on loans and off-balance-sheet instruments, or charge-off the entire balance.

Executive messages / Features

Mizuho’s value creation process

Business strategies for value creation

3. Self-assessment, provision for credit losses on loans and offbalance-sheet instruments and charge-offs
We conduct self-assessment of assets to ascertain the status ofassets both as an integral part of credit risk management and in
preparation for appropriate accounting treatment, including
provision for credit losses on loans and off-balance-sheet
instruments and charge-offs. During the process of selfassessment, obligors are categorized into certain groups taking into
consideration their financial condition and their ability to makepayments, and credit ratings are assigned to all obligors, inprinciple, to reflect the extent of their credit risks. The related
assets are then categorized into certain classes based on the riskof impairment. This process allows us to identify and control theactual quality of assets and determine the appropriate accounting
treatment, including provision for credit losses on loans andoff-balance-sheet instruments and charge-offs. Specifically, thecredit risk management department of each of our principal
subsidiaries is responsible for the overall control of the selfassessment of assets of the respective banking subsidiaries,
cooperating with the administrative departments specified for eachtype of asset, including loan portfolios and securities, in executing
and managing self-assessments. In our assessment of theprobability of obligor bankruptcy, we deem an obligor that is rated
as being insolvent or lower as being bankrupt.

Governance for value creation

Data section

Appendix

4. Credit review
Prevention of new impaired loans through routine credit
management is important in maintaining the quality of our overallloan assets.
Credit review involves analysis and screening of each potential
transaction within the relevant business department. In case thescreening exceeds the authority of the department, the credit
department in charge at headquarters carries out the review. We
have specialist departments for different industries, business sizes,
and regions, carries out timely and specialized examinations basedon the characteristics of the client and its market, and provides
appropriate advice to the business department.
In addition, in the case of obligors with low credit ratings and highdownside risks, the business department and credit department
jointly clarify their credit policy and in appropriate cases assist the
obligors at an early stage in working towards credit soundness.

Credit portfolio management
1. Risk measurement
We use statistical methodologies that involve a risk measurement
system (enterprise value corporate valuation model, holding periodof one year) to manage the possibility of losses by measuring the
expected average loss for a one-year risk horizon (“Expected Loss”)
and the maximum loss within a certain confidence interval (“Credit
VAR”). The difference between Expected Loss and Credit VAR ismeasured as the credit risk amount (“Unexpected Loss”).
The risk measurement system covers the following account items

In establishing transaction spread guidelines for credit transactions,
we aim to ensure an appropriate return from the transaction in lightof the level of risk by utilizing credit cost data as a reference.
Also, we monitor our credit portfolio from various perspectives andset guidelines noted below so that losses incurred through ahypothetical realization of the full Credit VAR would be within theamount of risk capital and loan loss reserves.

■ Loss distribution
Frequency
Average

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

Credit VAR
ExpectedLossreported by each Mizuho Financial Group company: credit
transactions including loans and discounts; securities; obligors’
liabilities for acceptances and guarantees; deposits and foreignexchange; derivatives including swaps and options; off-balancesheet items including commitments; and other assets involving
credit risk.

Unexpected Loss

Loss amount

2. Risk control methods
Our principal banking subsidiaries have established guidelines tomanage “credit concentration risk,” which stems from granting
excessive credit to certain corporate groups. Our principal banking
subsidiaries also set the credit limit based on a verification of thestatus of capital adequacy. In cases where the limit is exceeded,
our principal banking subsidiaries will formulate a handling policy
and/or action plan.
In addition to the above, our principal banking subsidiaries monitor
total credit exposure, credit exposure per rating, credit
concentration per corporate group, geographic area, and businesssector to make a periodical report to the Balance Sheet & Risk
Management Committee and the Credit Committee.

Integrated Report 2023

118

Market risk management
Basic approach
We define market risk as the risk of losses incurred by the groupdue to fluctuations in interest rates, stock prices, and foreignexchange rates. Our definition includes the risk of losses incurred
when it becomes impossible to execute transactions in the market
because of market confusion or losses arising from transactions at
prices that are significantly less favorable than usual.

Mizuho Financial Group manages market risk for the Mizuho groupas a whole. Specifically, Mizuho Financial Group establishes thefundamental risk management policy for the entire group, manages
the market risk of our principal banking subsidiaries and other coregroup companies, and monitors how the group’s market risk isbeing managed as a whole.

Market risk management structure
Our Board of Directors determines basic matters pertaining tomarket risk management policies. The Risk Management Committeeof Mizuho Financial Group broadly discusses and coordinates
matters relating to basic policies in connection with market risk
management, market risk operations, and market risk monitoring.
The Group CRO is responsible for matters relating to market risk
management planning and operations.
The Risk Management Department of Mizuho Financial Group is
responsible for monitoring market risk, reporting and analyzing,
making proposals, setting limits and guidelines, and formulating andimplementing plans relating to market risk management.

As for the situation of market risk, the Risk Management
Department submits reports to our President & Group CEO on adaily basis and to our Board of Directors on a regular basis. For the
purpose of managing the market risk of our principal banking
subsidiaries and other core group companies, the Department
regularly receives reports from each of them to properly identify
and manage their market risk. These subsidiaries and core groupcompanies, which account for most of the Mizuho group’s exposure
to market risk, establish their basic policies based on ours, and theirboards of directors determine important matters relating to market
risk management.

Market risk management method
To manage market risk, we set limits that correspond to risk capital
allocations according to the risk profile of each of our principal
banking subsidiaries and other core group companies and thereby
prevent the overall market risk we hold from exceeding our financial

strength represented by capital and other indicators. The amount ofrisk capital allocated to market risk corresponds to value-at-risk (the“VAR”) and additional costs that may arise in order to close
relevant positions.

Setting limits
When the above mentioned limits are set, various factors are taken
into account, including business strategies, historical limit usage
ratios, risk-bearing capacity (profits, equity capital, and risk
management framework), profit targets and the market liquidity ofthe products involved. The limits are discussed and coordinated by
the Risk Management Committee, discussed further by the

Executive Management Committee and then determined by our
President & Group CEO. For trading and banking activities, we set
limits for VAR and for losses. For banking activities, we set position
limits based on interest rate sensitivity (10 BPV) as needed. An
excess over any of these limits is immediately reported andaddressed according to a pre-determined procedure.

Monitoring
To provide a system of mutual checks and balances in market
operations, we have established middle offices specializing in risk
management that are independent of front offices which engage inmarket transactions and of back offices which are responsible forbook entries and settlements. When VAR is not adequate to control

119

Mizuho Financial Grouprisk, the middle offices manage risk using additional risk indices,carry out stress testing, and set stop loss limits as needed. We
monitor market liquidity risk for individual financial products in themarket while taking turnover and other factors into consideration.

Executive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Appendix

Data section

Status of Mizuho Financial Group’s market risk
Value-at-risk
We use the VAR method, supplemented with stress testing, as ourprincipal tool to measure market risk. The VAR method measuresthe maximum possible loss that could be incurred due to market
movements within a certain time period (or holding period) anddegree of probability (or confidence interval).

The following graph shows VAR figures for our trading activities forthe fiscal year ended March 31, 2023:
Fiscal 2022 VAR (trading activities)(VAR: ¥ billion)
9

Trading activities
VAR figures for our trading activities are based on the following:• historical simulation method;• confidence interval: one-tailed 99.0%;• holding period of one day; and• historical observation period of three years.

8
7
6
5
4
3

VAR by risk category (trading activities)

2
1
0

04/01/2022
04/20/2022
05/09/2022
05/28/2022
06/16/2022
07/05/2022
07/24/2022
08/12/2022
08/31/2022
09/19/2022
10/08/2022
10/27/2022
11/15/2022
12/04/2022
12/23/2022
01/11/2023
01/30/2023
02/18/2023
03/09/2023
03/28/2023

The following tables show the VAR figures for our trading activities
by risk category for the fiscal years ended March 31, 2021, 2022, and2023 and as of March 31, 2021, 2022, and 2023:(¥ billion)
Fiscal 2020
Daily average

Maximum

Minimum

At March 31

Interest rate

4.3

8.6

1.7

2.6

Foreign exchange

0.7

1.3

0.3

0.4

Equities

1.1

6.6

0.1

0.7

Commodities

0.0

0.0

0.0

0.0

Total

5.4

9.1

2.4

2.7

Fiscal 2021

The following table shows VAR figures for our trading activities forthe fiscal years indicated:
VAR (trading activities)(¥ billion)
Fiscal 2020

Fiscal 2021

Fiscal 2022

As of fiscal year end

2.7

5.3

7.0

1.7

Maximum

9.1

10.2

8.3

(1.9)

2.4

2.9

3.1

0.2

5.4

4.3

5.3

1.0

At March 31

MinimumInterest rate

3.8

5.7

2.8

4.0

Average

Foreign exchange

0.5

1.5

0.3

1.0

Daily average

Maximum

Minimum

Equities

0.8

4.9

0.2

1.1

Commodities

0.0

0.1

0.0

0.0

Total

4.3

10.2

2.9

5.3

ChangeFiscal 2023
Daily average

Maximum

Minimum

At March 31

Interest rate

4.6

7.2

2.7

7.2

Foreign exchange

0.8

1.6

0.4

0.9

Equities

1.1

2.0

0.4

1.0

Commodities

0.1

0.7

0.0

0.7

Total

5.3

8.3

3.1

7.0

Integrated Report 2023

120

Non-trading activities
The VAR figures for our banking activities are based on the same
conditions as those of trading activities, but the holding period is one
month. In addition, as for risk management of banking activities, it isimportant to properly measure interest rate risk so that we calculateinterest rate risk using appropriate methods such as recognizing demand
deposits as “core deposits.”
The following graph shows the VAR figures for our banking activities
excluding our cross-shareholdings portfolio for the fiscal year ended
March 31, 2023:
Fiscal 2022 VAR (banking activities)
VAR
Interest rate on five-year government bonds(VAR: ¥ billion)
450

(%)
0.5

400

0.4

350
300

0.3

250

0.2

200
150

0.1

100

0.0

50
04/01/2022
04/20/2022
05/09/2022
05/28/2022
06/16/2022
07/05/2022
07/24/2022
08/12/2022
08/31/2022
09/19/2022
10/08/2022
10/27/2022
11/15/2022
12/04/2022
12/23/2022
01/11/2023
01/30/2023
02/18/2023
03/09/2023
03/28/2023

0

-0.1

Fiscal2020(¥ billion)
Fiscal2021

Fiscal2022

ChangeAs of fiscal
year end

249.4

209.7

223.5

13.7

Maximum

501.7

321.9

392.2

70.3

Minimum

224.0

191.0

152.1

(38.8)

Average

346.5

266.0

217.6

(48.3)

Characteristics of VAR model
VAR is a commonly used market risk management technique.
However, VAR models have the following shortcomings:• By its nature as a statistical approach, VAR estimates possible
losses over a certain period at a particular confidence level using
past market movement data. Past market movement, however, is
not necessarily a good indicator of future events, particularly
potential future events that are extreme in nature.
• VAR may underestimate the probability of extreme market
movements.
• The use of a 99.0% confidence level does not take account of, nor
makes any statement about, any losses that might occur beyond
this confidence level.

121

Mizuho Financial Group

Cross-shareholdings portfolio management activities
We take the market risk management approach with use of VAR and risk
indices for cross-shareholdings portfolio management activities toproperly manage stock price risk. Specifically, we monitor VAR
measurements and the state of risk capital on a daily basis.
Moreover, in order to control stock price risk, we are working on the
reduction in cross-shareholdings through careful negotiations withcounterparties.
Back testing
In order to evaluate the effectiveness of market risk measurements
calculated using the VAR method, we carry out regular back tests tocompare VAR with assumptive profits and losses. Assumptive profits
and losses accounts for general market risk. The graph below shows
daily VAR of trading activities for the fiscal year ended March 31, 2023
and the corresponding paired distribution of profits and losses.
We had zero cases where losses exceeded VAR during the period.
In addition, we conduct evaluations of the assumptions related to the
VAR models. Based on the number of times losses exceeded VAR
through back testing and the results of the evaluation of the model
assumptions, we will make adjustments to the models as appropriate.
Changes to fundamental portions of the VAR models are subject to theapproval of our Group CRO.
Fiscal 2022 back testing

The following table shows the VAR figures for our banking activities forthe fiscal years indicated:
VAR (banking activities)• VAR does not capture all complex effects of various risk factors
on the value of positions and portfolios and could underestimate
potential losses.

Assumed profit or loss (¥ billion)
6
5
4
3
2
1
0
(1)
(2)
(3)
(4)
(5)
(6)
0
1
2
3

4

5

6

7
8
VAR (¥ billion)

Note: We conduct our back testing and assess the number of cases where losses exceed
VAR based on a 250 business day year. The expected average number of instanceswhere one-day trading losses exceeded VAR at the 99.0% confidence level is 2.5.

Stress testing
Because the VAR method is based on statistical assumptions, we
conduct stress testing to simulate the levels of losses that could beincurred in cases where the market moves suddenly to levels thatexceed these assumptions. The stress testing methods we use include
the calculation of losses under scenarios in which stresses are applied
to interest rate risk and stock price risk based on current and projectedeconomic conditions, historical market events, etc.

Executive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Data section

Appendix

Liquidity risk management
Basic approach
We define liquidity risk as the risk of losses arising from funding
difficulties due to deterioration of our financial position that make it
difficult for us to raise necessary funds or force us to raise funds atsignificantly higher interest rates than usual.
Mizuho Financial Group manages liquidity risks for the Mizuho group as awhole. Specifically, Mizuho Financial Group establishes a fundamental
liquidity risk management policy for the entire group, manages theliquidity risk of our principal banking subsidiaries and other core groupcompanies, and monitors how the group’s liquidity risk is being managed
as a whole.

Liquidity risk management structure
Our Board of Directors determines the basic matters pertaining toliquidity risk management policies. The Risk Management Committee ofMizuho Financial Group broadly discusses and coordinates mattersrelating to the basic policies in connection with the liquidity risk
management, operations, and monitoring, as well as proposes responses
to emergencies such as sudden market changes. Our Group CRO is
responsible for matters relating to liquidity risk management planning andoperations. Our Risk Management Department is responsible formonitoring, reporting and analyzing liquidity risk, making proposals inconnection with liquidity risk, and formulating and implementing plans
relating to liquidity risk management. In addition, our Group CFO is
responsible for matters relating to the planning and operation of funds
management, and the Financial Planning Department is responsible forits monitoring and also for planning and implementing measures relating

to funds management to maintain appropriate funding liquidity. Reportson the liquidity risk management are submitted to our Board of Directors,
the Risk Committee, the Executive Management Committee, our
President & Group CEO, and the Business Policy Committees,
respectively on a regular basis.
For the purpose of managing the liquidity risk of our principal banking
subsidiaries and other core group companies, Mizuho Financial Groupregularly receives reports from each of them to properly identify andmanage their liquidity risk. These subsidiaries and core group companies,
which account for most of the Mizuho group’s exposure to liquidity risk,
establish their basic policies based on ours, and their boards of directors
determine important matters relating to liquidity risk management.

Liquidity risk management method
We manage liquidity risk through the frameworks of “liquidity risk
management indicators” and “liquidity categorization.” The former isdetermined for the purpose of managing limits on funds raised in themarket considering our fund raising capabilities, and the latter isdetermined based on our funding conditions. We also carry out liquidity

stress testing to verify the sufficiency of liquidity reserve assets and theeffectiveness of countermeasures against a possible outflow of funds
during a stress event. The results of stress testing are used for funds
management operations.

Liquidity risk management indicators
Limits on funds raised in the market are set based on a number of time
horizons taking into account the characteristics and strategies of each of
our principal banking subsidiaries and other core group companies. Suchlimits are discussed and coordinated by the Risk Management

Committee, discussed further by the Executive Management Committee,
and determined by our President & Group CEO. An excess over any ofthese limits is immediately reported and addressed in accordance withpre-determined procedures.

Liquidity stress testing
We carry out stress testing regularly based on market-wide factors,
idiosyncratic factors of the group, and a combination of both types offactors to verify the sufficiency of liquidity reserve assets and theeffectiveness of our liquidity contingency funding plans. Furthermore, we
utilize stress testing to evaluate the appropriateness of our annual
funding plan.

Integrated Report 2023

122Liquidity categorization
We have established a group-wide framework of assessing thedaily basis to manage the funding conditions. The EWIs include

levels of the liquidity risks by categorizing them into “normal,”stock prices, credit ratings, amount of liquidity reserve assets such“anxious,” and “crisis,” to reflect the funding conditions. In

as Japanese government bonds, our funding situations, etc.

addition, we set early warning indicators (“EWIs”) and monitor on a

Operational risk management
Basic approach
We define operational risk as the risk of losses that may be incurred

we have separately determined the fundamental risk

resulting from inadequate or failed internal processes or systems,

management policies for these different types of risk. We

human error, or external events. We control operational risk

manage the operational risk associated with our principal banking

management for the Mizuho group as a whole. Considering thatsubsidiaries and other core group companies while monitoring theoperational risk includes information technology risk, operations risk,state of group-wide operational risk.

legal risk, human capital risk, tangible asset risk, and regulatory risk,

Definition

Information
technology risk

Cybersecurity risk

Risk that customers may incur losses or our group companies may incur losses due
to problems (e.g. malfunctions, disruptions, etc.) with the computer systems or
improper use of the computers in these systems, which cause disruptions of theservices provided to customers, or have significant impact on settlement systems,
etc.
Risk that the group may incur losses due to the problems caused by a cyberattack,such as leakage or falsification, etc. of electronic data or the failure of the expected
system functions.

Principal risk management methods• Identify and evaluate the risk by setting specific standards that need to be compliedwith and implementing measures tailored based on evaluation results to reduce
the risk.
• Ensure ongoing project management in systems development and quality control.
• Strengthen security capabilities for rapidly and effectively dealing withcyberattacks or other threats.
• Improve effectiveness of emergency responses by improving backup systems andholding drills.

Operations risk

Risk that customers may incur losses or the group may incur losses due to thedisruption of services to customers or major incidents affecting settlement systems,
etc., as a result of inadequate operations caused by fraudulent acts, errors or
negligence, etc., of senior executives or employees, or inadequacies in theoperational structure itself.

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

Legal risk

Risk that the group may incur losses due to violation of laws and regulations, breachof contract, entering into improper contracts or, other legal factors.

• Review and confirm legal issues, including the legality of material decisions,agreements and documents for external consumption, etc.
• Collect and distribute legal information and conduct internal training programs.
• Analyze and manage issues related to lawsuits.

Human capital risk

Risk that the group may incur losses due to turnover or loss of personnel,
deterioration of morale, inadequate development of personnel, inappropriate working
schedules, inappropriate working and safety environment, inequality or inequity inhuman resource management, or discriminatory conduct.

• Conduct staff satisfaction surveys.
• Understand the status of working hours.
• Understand the status of vacation days taken by personnel.
• Understand the status of voluntary resignations.
• Understand the status of the stress check system.

Tangible asset risk

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

• Manage the planning and implementation of construction projects related to therepair and replacement of facilities.
• Identify and evaluate the status of damage to tangible assets caused by natural
disasters or other causes, and respond appropriately to such damage.

Regulatory risk

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

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

We also recognize and manage information security risk and compliance risk, which constitute a combination of more than one of the above components, as
operational risk.

123

Mizuho Financial GroupExecutive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Data section

Appendix

Operational risk management structure
Our Board of Directors determines basic matters pertaining tooperational risk management policies. The Risk Management Committeeof Mizuho Financial Group broadly discusses and coordinates mattersrelating to basic policies in connection with operational risk management,
operational risk operations, and operational risk monitoring. The GroupCRO is responsible for matters relating to operational risk management
planning and operations. The Risk Management Department of Mizuho
Financial Group is responsible for monitoring market risk, reporting andanalyzing, making proposals, setting limits and guidelines, and formulating

and implementing plans relating to operational risk management.
The Mizuho Financial Group manages the operational risk conditions of
the entire group based on reports from the core group companies
regarding their operational risk management. In particular, companies forwhich the impact of operational risk is deemed to be high set their own
basic policies, similar to the Mizuho Financial Group itself, and the boardof directors of the individual company determines important mattersregarding operational risk management.

Operational risk management method
To manage operational risk, we set common rules for data gathering todevelop various databases shared by the group and measure operationalrisk as operational VAR on a regular basis, taking into account possible
future loss events and changes in the business environment and internalmanagement.
We have established and are strengthening management methods andsystems to appropriately identify, assess, measure, monitor, and control
the operational risks that arise from the growing sophistication anddiversification of financial operations and developments relating to
information technology by utilizing control self-assessments andimproving measurement methods.
• Control self-assessments
An autonomous method of risk management in which risk inherent in
operations is identified and, after evaluating and monitoring risks thatremain despite implementing risk control, the necessary measures are
implemented to reduce risk.

Definition of risks and risk management methods
As shown in the table on the previous page, we have defined eachcomponent of operational risk, and we apply appropriate risk

management methods in accordance with the scale and nature of eachrisk.

Measurement of operational risk equivalent
1. Implementation of the Advanced Measurement Approach (AMA)
We have adopted the AMA for the calculation of operational risk
equivalent in association with capital adequacy ratios based on the
Basel Accords. However, we use the Basic Indicator Approach forentities that are deemed to be less important in the measurement ofoperational risk equivalent.
The measurement results under the AMA are used not only as theoperational risk equivalent in the calculation of capital adequacy
ratios but also as Operational VAR for internal risk management
purposes for implementing action plans to reduce operational risk,
and other countermeasures.

2. Outline of the AMA
Outline of the measurement system
We have established our model by taking into account four
elements: internal loss data; external loss data; scenario analysis
and business environment; and internal control factors (BEICFs).
We calculate the operational risk amount by estimating the
maximum loss, using a 99.9th percentile one-tailed confidence
interval and a one-year holding period as operational risk
equivalent, employing both internal loss data (i.e., actuallyexperienced operational loss events), and scenario data to reflect
unexperienced potential future loss events in the measurement.
In the measurement of operational risk equivalent as of March 31,
2023, we did not exclude expected losses and also did not recognize
the risk mitigating impact of insurance. In addition, we did not take
into account the events related to credit risk in measuring
operational risk equivalent.

Integrated Report 2023

124

Outline of measurement model
Operational risk equivalent is calculated as a simple sum of thoserisk amounts related to the seven loss event types defined in the
Capital Adequacy Notice from Japan’s Financial Services Agency,
large-scale natural disasters, and litigation. In the measurement ofoperational risk equivalent as of March 31, 2023, we did not reflect
the correlation effects among operational risk related to each of theseven loss event types.
Operational risk by loss event type
Loss Distribution (Compound Poisson Distribution) Approach (LDA)
is adopted for the calculation of operational risk. LDA is based on
the assumption that Poisson Distribution applies to the occurrence
frequency of operational risk events, and loss severity is expressed
through a separate distribution. Operational risk is calculated foreach of the seven loss event types employing both internal loss
data, based on our actual experience as operational loss events,and scenario data. Scenario data, expressed as numerical values ofoccurrence frequency and loss severity, reflects external loss data
and BEICFs, in order to estimate unexperienced potential future loss
events (of low frequency and high severity).
Frequency Distribution and Severity Distribution are estimatedemploying the above mentioned internal loss data and scenario
data, and Monte-Carlo simulations are then applied to these
distributions to measure operational risk. The detailed steps ofcreation of scenario data are explained later in the Scenario
Analysis.

Estimation of Frequency Distribution and Loss Severity Distribution
Frequency Distribution is estimated by applying information on
occurrence frequency of both internal loss data and scenario data
to Poisson Distribution. Loss Severity Distribution is generated as
the result of combining, through a statistical approach (Extreme
Value Theory), of the actual distribution for the low severity
distribution portion created by internal loss data and another loss
distribution (Log-normal Distribution or Generalized Pareto
Distribution) for the high severity distribution portion created byscenario data.
Operational risk of large-scale natural disasters
Monte-Carlo simulation is applied to the datasets expressed as a
combination of the probability of occurrence of large-scale natural
disasters and the probable loss amount in case of such occurrence,
as opposed to estimating Frequency Distribution and Loss Severity
Distribution.
Operational risk of litigation
Each litigation is converted into data according to the profile of theindividual litigation to which Monte-Carlo simulation is applied, as
opposed to estimating Frequency Distribution and Loss Severity
Distribution.

■ Outline of measurement modelInternal loss data

Business environment andinternal control factors

External loss data
Scenario analysis

Litigation data

Risk amount for litigation risk＋
Scenario data

Large-scale natural
disaster scenario data

Risk amount for large-scale
natural disasters＋
Risk amount for internal fraud＋

Risk amount for external fraud

Distribution of
scenario data

Unifieddistribution

Frequency
distribution
information

Frequency
distribution
information

Frequency
distribution
information

Loss severity
distribution
information

Loss severity
distribution
information

Loss severity
distribution
information

Loss distribution
Monte-Carlo simulation

Distribution ofinternal loss

Risk amountCalculate risk amountby seven loss event
types defined by BIS

Risk amount for employment
practices and workplace safety
Risk amount for customers,
products, and business practices
Risk amount for damage tophysical assets
Risk amount for businessdisruption and system failure
Risk amount for execution,delivery, and process management

Operational VAR(Total operational risk amount)

125

Mizuho Financial GroupExecutive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Verification
We confirm the appropriateness of the measurement model byverifying it, in principle, semi-annually.
3. Scenario analysis
Outline of scenario analysis
In the process of scenario analysis, scenario data is created as
numerical values of occurrence frequency and loss severity
reflecting external loss data and BEICFs, in order to estimate
unexperienced potential future operational risk events (of low
frequency and high severity).
As for external loss data, we refer to data publicly reported bydomestic and overseas media, and such data are reflected in theestimation of occurrence frequency and Loss Severity Distribution
in the process of scenario analysis. In addition, BEICFs are utilized
as indices to adjust occurrence frequency and Loss Severity
Distribution in the process of scenario analysis.
We categorize scenario analysis into four approaches inaccordance with the characteristics of each loss event type andrisk management structures.
Approach

Loss event type(s) to be applied

A

Internal fraud / external fraud / clients, products, and businesspractices / execution, delivery, and process management

B

Employment practices and workplace safety

C

Damage to physical assets

D

Business disruption and system failure

At Mizuho Financial Group, loss event types to which Approach A isapplied account for a considerable amount of operational risk. The
detailed process of Approach A is explained here as a typicalexample of scenario analysis.

Governance for value creation

Appendix

Data section

threshold) is calculated with reference to the situation of
occurrence of internal loss data of less than the threshold amountand/or external loss data. The basic occurrence frequency is thenadjusted within a pre-determined range for the purpose ofreflecting the most recent BEICFs to determine the final occurrence
frequency.
Estimation of Loss Severity Distribution
In order to estimate Loss Severity Distribution, we use a predetermined series of severity ranges. Basic Loss Severity
Distribution is calculated for each scenario analysis unit as an
occurrence ratio (in percentile figures) of loss at each severity
range when losses at or above a pre-determined thresholdoccurred, with reference to transaction amount data, external loss
data, etc. Then the basic severity distribution is adjusted, if
necessary, from the viewpoint of statistical data processing todetermine the final Loss Severity Distribution.
Creation of scenario data
For each scenario analysis unit, scenario data is generated as aseries of combinations of occurrence frequency per year at eachseverity range, based on the final occurrence frequency and thefinal Loss Severity Distribution.

■ Example of scenario data
Final loss severity distribution
Severity range (¥ billion)
1

5

Total

0.1

0.5

10

Occurrence ratio (%)

40

30

15

10

5

100

Occurrence frequency (times)

0.4

0.3

0.15

0.1

0.05

1

Final occurrence frequency

Setting units for scenario analysis
In order to ensure completeness and sufficiency, we set units thatare commonly applied across group entities that adopt AMA (the“Group Entities”) by referencing and categorizing risk scenarios
recognized through control self-assessment, internal loss data of
the Group Entities, external loss data, etc. Then each of the Group
Entities selects the unit on which scenario analysis is conductedfrom the units established on a group-wide basis in accordancewith its business activities and operational risk profile.
Estimation of occurrence frequency
Basic occurrence frequency (once a year) is calculated for eachscenario analysis unit. If a certain scenario analysis unit has
relevant internal loss data of a pre-determined threshold amount orabove, its basic occurrence frequency is calculated based on suchdata, and if not, the basic occurrence frequency (the occurrence
frequency per year of losses at or above a pre-determined

Integrated Report 2023

126

Reputational risk management
Basic approach
We define reputational risk as the risk that the Mizuho group may

We supervise reputational risk management for the Mizuho group.

incur tangible or intangible losses due to adverse effect to ourSpecifically, we establish the group’s basic policies pertaining to

reputation or Mizuho’s brand when all services provided by and all

reputational risk management, manage core group companies, andactivities conducted by the Mizuho group, officers and employees,

monitor how the group’s reputational risks are being managed as aare recognized as deviating from the expectations and requirements

whole.

of stakeholders, including customers, employees, the economy, andsociety.

Reputational risk management structure
Our Board of Directors determines the Mizuho group’s basic matters

Reports on the reputational risk situations, etc. are made on a regularpertaining to reputational risk management. In addition, the Businessbasis to the Group CSO and the Business Policy Committees.

Policy Committees (specifically the Risk Management Committee)

Regarding the reputational risk management of the core group

comprehensively deliberate and coordinate basic policies pertaining

companies, we identify and manage reputational risks appropriately

to reputational risk management, and matters relating to operations

by receiving their reports on a regular basis. In particular, individualand monitoring. The Group Chief Strategy Officer (Group CSO) is

companies which account for a large part of the group’s reputational

responsible for matters relating to planning and operation ofrisks establish their own basic policies, and the board of directors of

reputational risk management. The Public Relations Office conducts

the individual company determines important matters pertaining tomonitoring and reporting of reputational risks and analyses andreputational risk management.

suggestions thereof, and carries out planning and promotion of basic
matters pertaining to reputational risk management.

Method of reputational risk management
We control reputational risks by carrying out centralized monitoring and

We endeavor to prevent the realization of reputational risks beforehandmanagement of the information that is deemed to have a great impact on

and minimize losses by identifying reputational risks earlier andour group management, and creating an appropriate management

responding appropriately in terms of urgency and impact.

structure suited to the scale and nature of risks, etc.

Model risk management
Basic approach
We define model risk as the risk of the Mizuho group incurring tangible

development and inappropriate use of these models.

and intangible losses due to decision-making based on an inadequate or
failed model and/or inappropriate use of a model.

We supervise model risk management for the Mizuho group and arepromoting comprehensive and effective model risk management

127

In recent years, against the backdrop of the wider and more complex

throughout the group. Specifically, we are currently conducting abusiness operations of financial institutions and technological innovations

complete model survey on a group and global basis covering all businesssuch as artificial intelligence, the opportunities to use models in the

categories, including banking, trust banking, and securities businesses,

operations of financial institutions have been expanding, and theirand covering all of the regions of Japan, the Americas, EMEA andmateriality and impact have been increasing. Under such circumstances,Asia-Pacific. With the commitment of the senior management, we will

there is a growing need to manage model risk by focusing on the risk ofgrasp and visualize the status of model risk, promoting appropriate model

tangible and intangible losses arising from decisions based on improperrisk management on a risk-based approach.

Mizuho Financial GroupExecutive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Data section

Appendix

Model risk management structure
Our Board of Directors determines the Mizuho group’s basic

etc., and makes and promotes plans for model risk management.

matters pertaining to model risk management. In addition, theBusiness Policy Committees (specifically the Risk Management

We manage model risk situations for the entire group based on theCommittee) comprehensively deliberate and coordinate basic

reports received from the core group companies on their model risk

policies pertaining to model risk management, and matters relating

management. In particular, individual companies which areto administration and monitoring. Our Group CRO is responsible fordetermined to be highly susceptible to model risks establish theirmatters relating to planning and administration of model risk

own basic policies, and their respective boards of directors

management. The Risk Management Department is responsible fordetermine important matters pertaining to model risk management.

monitoring model risks, making reports, analyses, and proposals,

Method of model risk management
Our model risk management is carried out through model testing,step of model identification, development, use, change, and exit.

monitoring, etc. by the first line of defense, which consists of model

Furthermore, we carry out model risk management based on aowners, users, developers, etc. and through model validation andrisk-based approach with weighting according to the materiality

other methods by the second line of defense, which controls modeland impact of the models.

risk via reviewing and challenging the first line of defense in every

Third-party risk management
Basic Approach
At the Mizuho Financial Group, third-party risk is defined as “riskas the risk of the company and the group itself, and we grasp,that emerges at the company or the group arising from third parties

assess, and respond to risk appropriately from the perspectives ofwith which the company or the group has business contractual

sound management, appropriate operations, customer protection,

relations,” and it is positioned as complex risk comprising each risk

and business continuity, and thus ensure the proper execution ofof market risk, credit risk, liquidity risk, and operational risk. Based

operations via third parties and other sound and appropriate

on the importance of relations with third parties in the group’s

operations. The Mizuho Financial Group oversees the third-party

operations, the company recognizes risk pertaining to third parties

risk management of the group.

Third-party risk management structure
Our Board of Directors determines the Mizuho group’s basic

proposals in connection with third-party risk, and formulating andmatters pertaining to third-party risk management. The Risk

implementing plans relating to third-party risk management.

Management Committee of Mizuho Financial Group broadly
discusses and coordinates matters relating to basic policies in

The Mizuho Financial Group manages the third-party risk conditions

connection with third-party risk management, third-party riskof the entire group based on reports from the core group companies

operations, and third-party risk monitoring. The Group CRO of

regarding third-party risk management. In particular, individual

Mizuho Financial Group is responsible for matters relating to third-

companies that account for a large part of the group’s third-party

party risk management planning and operations. The Risk

risks establish their own basic policies, and the board of directors

Management Department of Mizuho Financial Group is responsibleof the individual company determines important matters pertaining

for monitoring, reporting and analyzing liquidity risk, making

to third-party risk management.

Third-party risk management method
As a third-party risk management method, we grasp third-party risk

At the Mizuho Financial Group, the assessment and monitoringin a timely and accurate manner and respond appropriately throughconditions of third-party risk and monitoring of any concentration of

appropriate contracts with third parties, third-party assessment andrisks in particular corporate groups are reported to the businessmonitoring, and we monitor any concentration of risks in particularpolicy committees (Risk Management Committee), the Executive

corporate groups.

Management Committee, and the President & Group CEO on aregular basis.

Integrated Report 2023

128

Climate-related risk management
Basic approach
The Mizuho Financial Group defines climate-related risk as “the risk

the core group companies.

of suffering tangible or intangible losses when transition risk andphysical risk arising from climate change manifest or amplify

We continuously enhance our ability to predict various changes

various other risks.” Transition risk refers to “risk caused byrelated to climate change, pay attention to the potential impact ofchanges in the business environment with the transition to a

climate change, and manage climate-related risk from short-term

decarbonized society,” and physical risk refers to “risk caused byand middle- to long-term perspectives. Also, to respond to the highchanges in the physical impact accompanying climate change.”

expectations and demands of wide-ranging stakeholders, we
conduct appropriate risk management based on the Mizuho Code of

The Mizuho Financial Group oversees the group’s climate-related

Conduct, Environmental Policy, and Basic Policy on Sustainability

risk management. Specifically, we set the basic policy regarding

Initiatives.

climate-related risk management for the entire group and manage

Climate-related risk management structure
Our Board of Directors determines the Mizuho group’s basic

appropriately.

matters pertaining to climate-related risk management. The Risk
Management Committee of Mizuho Financial Group broadly

The climate-related risk conditions are compiled by the Risk

discusses and coordinates matters relating to basic policies inManagement Department and reported by the Group CRO to theconnection with climate-related risk management, climate-related

Board of Directors and the Executive Management Committee, etc.

risk operations, and climate-related risk monitoring. The Group CRO

each time. The Mizuho Financial Group manages the conditions ofis responsible for matters pertaining to the planning and operation

the group’s overall climate-related risk through reports on climate-of climate-related risk management. The Risk Management

related risk management from each core group company each time.

Department is responsible for the unitary grasping of climate-

In particular, individual companies which account for a large part ofrelated risk, and conducts and advances basic planning regarding

the group’s climate-related risk set their own basic policies, similar

climate-related risk. Each office responsible for risk management

to the Mizuho Financial Group itself, and the board of directors ofgrasps where the climate-related risk it is responsible for exists andthe individual company determines important matters pertaining to

the scale of its impact in a timely manner and responds

climate-related risk management.

Climate-related risk management method
As the climate-related risk management method, we assess theneeded to highly important climate-related risks both qualitatively

importance of the grasped climate-related risks based on theirand quantitatively.

impact and likelihood, and manage and respond appropriately as

129

Mizuho Financial GroupExecutive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Data section

AppendixBusiness continuity management
In light of our social responsibility and the important role Mizuho plays

collecting and analyzing information, formulating countermeasures, andwithin the social infrastructure as a financial institution, ensuring thetaking other necessary action. In addition, their role includes collecting

continuity of financial settlement functions and the swift and efficientand analyzing signs and indicators of a potential crisis, and reporting theirrecovery of operations in the event of an emergency is one of our top

findings promptly to management.

priorities within the group.
Particular focus is placed on strengthening our response to natural
To improve business continuity management practices across the group,

disasters, covering not only earthquakes and tsunamis but also volcanic

we assess the potential impact of emergencies beforehand and formulate

eruptions, large-scale wind or water damage, and facilitating initialnecessary countermeasures in order to minimize such impact, and toresponses to acts of terrorism and riots as well as cyberattacks that haveensure the swift and efficient recovery of operations.

been occurring with increasing frequency around the world.

One of the ways in which we are working to achieve this is by establishing

Based on the series of IT system failures, we are working to improve the

Crisis Management Offices within Mizuho Financial Group, Mizuho Bank,

effectiveness of our business continuity management system by

Mizuho Trust & Banking, and Mizuho Securities that are responsible for

confirming the content and procedures of our system contingency plansbusiness continuity management and our responses in the event ofand business contingency plans, continuing to strengthen training andemergency. These offices function as a controller in the event of anrealistic drills throughout the group, including with executive management,

emergency that may materially impact business management, by

and incorporating the basic approach of operational resilience.

Integrated Report 2023

130

Compliance contacts
Internal control and audit hotline
A system designed for reporting questionable accounting or
auditing matters

Approaches to financial alternative dispute
resolution (ADR)
In order to deal expeditiously, fairly, and appropriately with complaints

Reporting items: Mizuho Financial Group has established a hotline toand other feedback from customers, Mizuho Bank and Mizuho Trust &receive reports from in and outside the company inBanking have concluded a contract for the implementation of disputeconnection with problems concerning internal control

resolution procedures with the Japanese Bankers Association, which is a

and audits of accounts and financial reports.
Contact point: This hotline has been established within an external law
office. Reports can be made via postal mail or email.
Postal mail: 12th Floor, Kasumigaseki Bldg.,

designated dispute resolution organization for banking services as definedin Japan’s Banking Act. Mizuho Trust & Banking has also concluded acontract for the implementation of dispute resolution procedures with theTrust Companies Association of Japan, which is a designated dispute
resolution organization as defined in Japan’s Trust Business Act and Act

Kasumigaseki 3-2-5, Chiyoda-ku, Tokyo

on Engagement in Trust Business by Financial Institutions. In addition,

100-6012

Mizuho Securities has concluded a contract for the implementation ofMizuho Accounting Hotline, c/o Daiichi Fuyo

dispute resolution procedures with the Financial Instruments Mediation

Law Office
Email: kaikei-mizuho@daiichifuyo.gr.jp○ When a report is received concerning the reporting items stipulated

Assistance Center, which is a designated dispute resolution organization
as defined in Japan’s Financial Instruments and Exchange Act.
The designated dispute resolution organization takes the steps toward

above, Mizuho Financial Group will make a reasonable effort toresolution from a fair and neutral perspective in cases where the solutions

investigate the facts behind the information received and report backto customers’ complaints adopted by our group companies are noton the results.

accepted.

○ Anonymous tips are also acceptable, but there are cases where it will
not be possible to fully satisfy the intentions behind such tips owing toconstraints on investigations and the inability to report back.
○ Information on persons making such reports is not disclosed to third

The designated dispute resolution organization for banking
services as defined in Japan’s Banking Act with which Mizuho
Bank and Mizuho Trust & Banking have contracted
Designated Dispute Resolution Organization for Banking Services:

parties other than the group companies except in cases where theJapanese Bankers Association

assent of the person in question has been obtained or such disclosure

Contact: Japanese Bankers Association Customer Relations Centeris required under laws and ordinances.

Tel: +81-(0)3-5252-3772
The designated dispute resolution organization as defined inJapan’s Trust Business Act and Act on Engagement in TrustBusiness by Financial Institutions with which Mizuho Trust &Banking has contracted
The Designated Dispute Resolution organization:
Trust Companies Association of Japan
Contact: Trust Consultation Center of the Trust Companies Association ofJapan
Tel: +81-(0)3-6206-3988
The designated dispute resolution organization as defined inJapan’s Financial Instruments and Exchange Act with which
Mizuho Securities has contracted
The Designated Dispute Resolution organization:
Financial Instruments Mediation Assistance Center
Contact: Financial Instruments Mediation Assistance Center consultation
centerTel: +81-(0)120-64-5005 (within Japan only)

131

Mizuho Financial GroupExecutive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Appendix

Data section

Internal audit structure
Basic approach
Internal audit refers to the series of activities, ranging from the objective
and comprehensive evaluation of the effectiveness and appropriateness ofeach process relating to governance, risk management, and control, toproviding recommendations and corrective guidance, etc., toward theresolution of problems from an independent standpoint of the departments
and business processes that are subject to the audit, based on a plan
approved by the board of directors of each of our group companies.
Through these series of activities, internal audits assist the board of

directors of each of our group companies to fulfill their managerial duties
efficiently and effectively. In line with the Basic Policy for Internal Audit
established by Mizuho Financial Group, our principal banking subsidiaries
and other core group companies conduct internal audits, which include theinternal auditing of their respective subsidiaries.
In addition, with respect to the management of risks applicable across theMizuho group, we coordinate internal audits throughout the group toassess the risk management status of the group as a whole.

Internal audit management structurebusiness processes.

Mizuho Financial Group (holding company)
Our Internal Audit Group is independent from other departments andbusiness processes at Mizuho Financial Group.
The Internal Audit Group conducts internal audits of Mizuho Financial
Group, and centrally monitors and manages the status of internal audits at
our core group companies, by verifying the internal audits and internal
control structure at each company based on reports submitted by thosecompanies.
The progress of individual audits and plans is reported to the Audit
Committee, and our Internal Audit Group responds to requests forinspections and receives specific instructions from the Audit Committee.
In addition, we have also established an Internal Audit Committee that
discusses and makes decisions on all important matters regarding internal
audits. Its resolutions and important matters for reporting are submitted to
the Audit Committee and our Board of Directors.

Mizuho Bank and Mizuho Trust & Banking
The Internal Audit Groups at both Mizuho Bank and Mizuho Trust &Banking are independent from their respective other departments and

The progress of individual audits and plans is reported to their respective
Audit & Supervisory Committees, and their respective Internal Audit
Groups respond to requests for inspections and receive specificinstructions from their respective Audit & Supervisory Committees.
In addition, they have also both established Internal Audit Committees
that discuss and make decisions on all important matters regarding theirrespective internal audits.
Both banks have established internal audit departments to conduct
internal audits at their respective domestic and overseas business offices,head office departments, and group companies. Specifically, the internal
audit departments assess the suitability and effectiveness of businessactivities associated with compliance and risk management.

Other core group companies
Other core group companies have also established effective and efficientinternal audit structures adapted to the characteristics of their respective
businesses.

Supervision/
Audit
Board of Directors

Audit Committee
Instruction

Managedby Mizuho Financial Group

ReportManagement
Advice, guidance,and remedial recommendations

Group CEOInternal Audit Committee

All organizational units

Internal audit

Internal Audit GroupInternal Audit Department

Report the resultsof internal audits

Subsidiaries of the above group companies

Mizuho Financial Group

Mizuho Bank, Mizuho Trust & Banking,Mizuho Securities, and other core group companies

Internal audit management structure(As of June 30, 2023)

Integrated Report 2023

132

Support for SMEs and regional revitalization
Support for small and medium–sized enterprises (SMEs)
By drawing on our consulting capabilities to provide proposals and solutions thatbusiness expansion and succession, and support the growth of innovative

address the issues SMEs face, we ensure that clients' perspectives are prioritizedcompanies with exceptional technologies or ideas.

when providing support for business expansion, succession, reorganization, andother client needs. We also believe that proactively supporting SMEs is a key part

Furthermore, a specialized business reorganization section within our Head Officeof fulfilling our social responsibility as a financial institution.

provides support for SMEs' business improvement and reorganization needs. In
addition, our Head Office collaborates with frontline offices to provide

In particular, by providing consulting and support for SMEs' growth strategies, weconsultations and support for clients through partnerships with external

can introduce clients to potential M&A opportunities from the standpoint oforganizations, external specialists, and other financial institutions.

Regional revitalization initiatives
In Japan, as a result of the trend toward concentration of businesses and otherdraw people back to local areas and population growth creates more jobs.

economic activity solely in Tokyo, rural populations are expected to decline andUtilizing our office network in Japan, we are striving to promote the revitalization

regional economies are expected to shrink in the future. As a nation, Japan mustof regional economies by providing our clients with funding, supporting thelook for ways to revitalize regional areas through a virtuous cycle in which jobs

operations of local businesses, and collaborating with regional governments.

Case study: Regional revitalization initiative
Mizuho Bank has set up a Regional Revitalization Desk with the headquarters

services.

functions of planning and promoting regional industry revitalization, carbon
neutrality, DX, and other initiatives to resolve issues facing local communities,

We will continue to contribute to regional revitalization by sharing branch efforts

providing regional revitalization support that draws on our strengths as a groupacross the group and engaging in cross-regional business matching, as well aswith offices in all 47 prefectures in Japan.

working with group companies on business creation.

Regional issues

We have also set in place a structure that enables knowledge and knowhow to beaggregated and utilized, including holding Regional Revitalization Summits as aspace for online exchanges of views among our frontline offices nationwide. The

Partnership

Industry-academia- Local authorities
government

Local banks

Regional Revitalization Desk serves as a hub, coordinating with the relevant
Officeparties in relation to enquiries made to our offices by local companies and local
authorities.
For example, we use our client network to introduce regions that want to increase
their foreign visitor numbers to travel agents with knowhow on attracting foreign
visitors and to cross-border e-commerce services that sell products overseas via

OfficeOfficeRegional Revitalization
Regional Revitalization
SummitDesk
Aggregate
Strengths

Information

Functions(knowledge, knowhow)(securities, trusts, leases, etc.)

Client basethe Internet. We also propose DX services such as digital community currency

Finance facilitation and response to the Guidelines for Personal Guarantee Provided by Business Owners
Finance facilitation

Owners established by the Japanese Bankers Association and the Japan Chamber

Mizuho works to promote finance facilitation in accordance with group-wideof Commerce and Industry, as well as the associated special provisions that came

fundamental policies. This includes ensuring that we respond appropriately tointo effect on April 1, 2020.

requests for new loans or loan condition adjustments, and provide tailoredconsulting.

We provide the option for a joint guarantee with a termination clause and multiple
other lending methods as alternatives to personal guarantee provided by business

Guidelines for Personal Guarantee Provided by Business Owners
We are committed to establishing and maintaining good relationships with ourclients in line with the Guidelines for Personal Guarantee Provided by Business
133

Mizuho Financial Groupowners. Also, we have established a structure for cooperation between ourfrontline offices and Head Office to encourage the utilization of these methods.

Executive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Appendix

Data section

Compliance with international financial regulations
along with introducing liquidity requirements to address issues that came tothe soundness of banking institutions, were first created in 1988 (now referred

light in the 2008 global financial crisis. Regulatory reforms following theto as Basel I). As the financial services industry and world affairs havefinancial crisis were largely completed in 2017 (Basel III finalization) with

developed, steps have been taken to steadily enhance this framework.

reforms aimed at reducing discrepancies among banks regarding the calculation

Formulated in 2010, Basel III is a framework that tightened capital requirementsof risk-weighted assets (RWA, which is the denominator of the capital ratio).

Global developments

The Basel standards, a unified international regulatory framework for ensuring

1982
Latin American debt crisis

2008 Global financial crisis

1988
Basel standards

Increasing diversity and complexity of financial systems
More sophisticated risk management systems

Increase in trading activity

Basel I

●Introduction of
the capital ratio

1996

2004

Basel I

●Market risk
incorporated
into RWA calculation2009

Basel II

2010

2017

Basel 2.5

●Allowing the use of banks’internal credit ratings in
RWA calculation●Operational risk
incorporated into RWA
calculation

2019

Basel III finalization●Tightening of
requirements regarding
capital charges forsecuritized products andmarket risk

●Review and revision of RWA
calculation methods●Introduction of output floor(establishment of a floor for RWA
calculated using internal models)Completion of remaining Basel III tasks

Basel III●Strengthening qualitative and ●Finalization of minimum capitalquantitative requirements forrequirements for market risk
capital (numerator of thecapital ratio)●Introduction of leverage ratio
and liquidity requirements

Principal requirements under Basel III and state of compliance
As a Global Systemically Important Bank (G-SIB), Mizuho Financial Group

Capitalratio

must meet some regulatory standards at a higher level. We maintain full

Leverage
ratio

compliance with all the requirements in the standards and, going forward,
we will steadily accumulate capital and control our balance sheet to ensure

Liquidity
coverage
ratio

that we can satisfy any new requirements that are introduced.

Net stable
fundingratio

Capital
RWA (which are calculated by taking account of the risk of assets held)
CapitalExposure (calculated without taking account of the risk of assets held)
Stock of high-quality liquid assets
Total net cash outflows under severe stress conditions over a specified
short-term period (30 days)
Available amount of stable funding (capital, deposits, market funding, etc.)
Required amount of stable funding (loans, securities, etc.)

International financial regulations going forward
With the completion of the post-global financial crisis regulatory reforms,

In addition, the environment that financial institutions operate in has

the Financial Stability Board and the Basel Committee on Banking

reached a critical turning point, including rapidly accelerating digitalization

Supervision, which are responsible for developing international financial

and increasing societal interest in sustainability. There is growing attention

regulatory standards, are turning their attention to new areas. Specifically,

to, and international discussion about, the opportunities and risks

they have shifted their focus from developing new regulatory standards topresented to banks and financial systems by the various impacts of climate

consistent implementation of regulations in individual countries andchange and the popularization of digital assets. For example, various

evaluating the impact of regulatory reforms (e.g., are they having theinternational bodies and local regulatory authorities, foremost among themintended effect without compromising regulatory resilience). Recently,

the Financial Stability Board and the Basel Committee on Banking

responding to the turmoil in financial markets early in 2023, the BaselSupervision, have been looking into responses to risks related to digitalCommittee on Banking Supervision has reaffirmed expectations regarding

assets and climate-related financial risk.

the full and consistent implementation of all aspects of the Basel III
regulations.

To address these various risks, we will work closely with government,
academia, and industry, while also holding proactive internal discussions.
Integrated Report 2023

134

Non-financial data
Corporate governance
Number of directors
Directors

Percentage of outside directors

June 2019

June 2020

June 2021

June 2022

14

13

13

12

June 2023
14

43%

46%

46%

50%

57%

Percentage of director positions filled by women

14%

8%

8%

8%

14%

Average attendance rate for Board of Directors meetings*

100%

100%

100%

100%

－

Nominating Committee

Compensation Committee

Audit Committee

100%

100%

75%

Percentage of outside directors (June 2023)* Fiscal year basis

Human capital
FY2018
Total number of employees3

Employees1

Training

FY2019FY2021

FY202256,22554,05551,05649,068

Employees in Japan

52,60750,244

48,25345,66744,008

Employees hired outside Japan

4,867

4,917

4,728

4,449

4,207

Employees dispatched to our offices from otherorganizations, and similar.

1,253

1,064

1,074

940

853

Average employee age4

39

40

40

40

40

Average employee length of service4

14

14

15

15

16

Total number of participants5

/

/

/

/

1,956,513

48,868

158,448

227,101

354,846///

1,689,113

Training organized by Human Resources Group
Training hours/
Training organized by Human Resources GroupEngagement

FY202058,727

480,125

513,447

506,486

652,048

/

/

/

/

51%

57%

57%

57%

57%

57%

General manager equivalent

5%

5%

6%

7%

9%

General manager and manager equivalent

14%

15%

16%

16%

19%
104%

Engagement score6
Percentage of employees who are female1, 7Percentage of management positions filled by women

8

Diversity, Equity &Percentage of eligible male employees who take childcare leave9
Inclusion /Well-being
Percentage of management positions outside Japan filled by employees hired outside Japan10

100%

93%

98%

97%

44%

64%

64%

66%

84%

/

/

/

/

55%

75%

77%

70%

76%

78%

Inclusion score6
Percentage of paid annual leave taken by employees11

1.
2.
3.
4.
5.

As of March 31. Mizuho Financial Group (including employees seconded to Mizuho Securities), Mizuho Bank, Mizuho Trust & Banking, Mizuho Securities, and Mizuho Research & Technologies.2
Data up to FY2020 reflects figures for the former Mizuho Information & Research Institute.
Definition and breakdown have been updated. The figures have been recalculated retroactively based on the new definition.
Figures are for employees in Japan only, excluding temporary and contract employees.
In Japan (aggregate for Mizuho Financial Group, Mizuho Bank, Mizuho Trust & Banking, Mizuho Securities, and Mizuho Research & Technologies). Up until FY2021, the scope for training was training organized by the
Human Resources Group, but this has been changed as of FY2022 to training organized by all departments, the Human Resources Group included.
6. Based on the positive response rate (selection of 4 or 5 on a scale from 1 to 5) for four Staff Survey questions related to engagement and inclusion.
7. Figures are for employees in Japan only.
8. From FY2022, target, scope, and base date have been changed in conjunction with revision of the medium-term business plan. As of March 31. In Japan, Mizuho Financial Group (including employees seconded to Mizuho
Securities), Mizuho Bank, Mizuho Trust & Banking, Mizuho Securities, and Mizuho Research & Technologies.2 Figures for FY2021 and FY2022 are based on the new criteria.
9. Due to revisions to relevant laws, FY2022 results have been calculated using legally defined rules (percentages of employees who take childcare leave), while FY2021 results have been calculated using Mizuho’s own
methods. In Japan, Mizuho Financial Group (including employees seconded to Mizuho Securities), Mizuho Bank, Mizuho Trust & Banking, Mizuho Securities, and Mizuho Research & Technologies.2
10. Figures up to FY2018 are for Mizuho Bank only. Figures for FY2019 and later are the aggregates for Mizuho Bank, Mizuho Trust & Banking, and Mizuho Securities. Criteria for management positions changed as of FY2022.
11. Figures up to FY2021 are the total of Mizuho Financial Group, Mizuho Bank, Mizuho Trust & Banking, and Mizuho Securities. Mizuho Research & Technologies added as of FY2022.2

Environment
FY2018
Scope 1 and 21, 2 (tCO2e)Electric power sector (kgCO2e/MWh)
Scope 3 (emissions
from fi¬nancing and Oil and gas sector
investment)

Scope 1 and 2 (gCO2e/MJ)
Scope 3

(MtCO2e)(Rate of reduction compared to FY2019)

Thermal coal mining sector (MtCO2e)
Scope 3 (business trips)5 (tCO2e)
Outstanding credit balance for coal-fired power plants based on our Environmental and Social Management Policy for Financing andInvestment Activity (¥ billion)
Exposure to high-risk areas in transition risk sectors (¥ trillion)

FY2019FY2020

FY2021

FY2022

203,466

179,664

164,394

150,987

108,878

/

/

388

353

ー

/

6.6

/

6.5

ー

/

60.6

/

43.2
(29%)

ー

/

/

5.1

1.7

ー

5,480

5,396

1,375

831

2,076

/

299.5

289.1

248.6

235.5

/

/

1.8

1.6

1.6

499,334

453,129

430,690397,704

424,707

Paper usage (Year-on-year change)5(9.0%)(16.7%)(21.9%)(10.3%)(7.3%)

Green procurement ratio for paper5

99.8%

99.9%

99.9%

99.9%

100%

Total energy consumption (Megawatt hours)1, 2, 6

1. These data items include all the facilities of seven group companies: Mizuho Financial Group, Mizuho Bank, Mizuho Trust & Banking, Mizuho Securities, Mizuho Research & Technologies3, Asset Management One, and Mizuho
Americas (data up to FY2021 are for eight group companies including the former Mizuho Private Wealth Management4. Our FY2022 performance, consolidated subsidiaries included, was 128 ktCO2e (provisional figure).
2. The FY2022 figure is provisional.
3. Data up to FY2020 combines figures for the former Mizuho Information & Research Institute and former Mizuho Research Institute.
4. Company liquidated on March 23, 2022; functions taken over by Mizuho Bank.
5. These data items include all the facilities of six group companies: Mizuho Financial Group, Mizuho Bank, Mizuho Trust & Banking, Mizuho Securities, Mizuho Research & Technologies3, and Asset Management One (dataup to FY2021 are for seven companies including the former Mizuho Private Wealth Management4).
6. Direct and indirect energy consumption converted to megawatt hours.

135

Mizuho Financial GroupExecutive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Appendix

Data section

Sustainable finance and environment and climate-related finance
FY2019FY2020

FY2021

FY2022

Sustainable finance (¥ trillion)

2.4

4.7

6.0

8.1

(of which, environment and climate-related finance)

(1.1)

(1.5)

(2.0)

(3.5) ※* Of which, Mizuho Bank accounts for ¥2.6 trillion and Mizuho Trust & Banking accounts for ¥26.1 billion.

Integrated Report 2023

136

Senior executives
Senior Executive Officer
Co-Head of Global Markets Company

Yoshimitsu Kobayashi

Senior Executive Officer
Co-Head of Global Markets Company

Member of the Board of Directors(Outside Director)

Ryoji Sato

Member of the Board of Directors(Outside Director)

Takashi Tsukioka

Member of the Board of Directors(Outside Director)

Kotaro Ohno

Member of the Board of Directors(Outside Director)

Hiromichi Shinohara

Member of the Board of Directors(Outside Director)

Daishi Sasaki

Noriyuki Sato

Senior Executive Officer
Head of Asset Management Company / In
Charge of Specially Assigned Matters

Tsutomu Yamamoto

Senior Executive Officer
Head of Global Transaction Banking Unit

Yasuhiko Ushikubo

Senior Executive Officer
Head of Research & Consulting Unit /Group Chief Sustainability Officer (GroupCSuO)

Naoshi Inomata

Hisashi Kikuchi

Member of the Board of Directors(Audit & Supervisory Committee Member)

Shigeo Ohara

Member of the Board of Directors(Outside Director, Audit & Supervisory
Committee Member)

Shotaro Tochigi

Member of the Board of Directors(Outside Director, Audit & Supervisory
Committee Member)

Kyoichiro UenishiMember of the Board of Directors(Outside Director, Audit & Supervisory
Committee Member)

Naoko Nemoto

Member of the Board of Directors(Outside Director, Audit & Supervisory
Committee Member)

Member of the Board of Directors(Outside Director)

Senior Executive Officer
Group Chief Strategy Officer (Group CSO) /General Manager of Strategic Planning
OfficeMasahiko Tezuka

Masami Yamamoto
Izumi Kobayashi

Minako Nakamoto

Executive Officers(Head of each region outside Japan)

Chairperson, member of the Board of
Directors(Outside Director)

Yumiko Noda

Member of the Board of Directors(Outside Director)

Seiji Imai

Member of the Board of Directors
Chairperson (Kaicho)*

Senior Executive Officer
Group Chief Governance Officer (GroupCGO)

Takefumi Yonezawa

Senior Executive Officer
Group Chief Financial Officer (Group CFO) /General Manager of International
Accounting Standards Project Team

Natsumi Akita

Member of the Board of Directors(Outside Director, Audit & Supervisory
Committee Member)

Shuji Matsuura

Managing Executive Officer
CEO for the Americas

Fumiro Suzuki

Managing Executive Officer
CEO for Europe, Middle East and Africa

Koichi Zaiki

Hisaaki Hirama

Managing Executive Officer
CEO for Asia-Pacific

Member of the Board of Directors

Senior Executive Officer
Group Chief People Officer (Group CPO) /Group Chief Culture Officer (Group CCuO)

Masahiro Kihara

Koji Yonei

Managing Executive Officer
Co-CEO for Asia-Pacific

Member of the Board of Directors
President & Group CEO(Representative Executive Officer)
Group CEO

Makoto Umemiya

Member of the Board of Directors
Deputy President & Senior Executive Officer(Representative Executive Officer)
Group Chief Digital Officer (Group CDO)

Motonori Wakabayashi

Senior Executive Officer
Group Chief Information Officer (Group CIO)

Mitsuhiro Kanazawa

Senior Executive Officer
Group Co-Chief Information Officer (Group Co-CIO) /Group Chief Process Officer (Group CPrO)

Makoto Matsubara

Senior Executive Officer
Group Chief Compliance Officer (Group CCO)

Hisashi Kikuchi

Member of the Board of Directors
Senior Executive Officer
Group Chief Risk Officer (Group CRO)

Senior Executive Officer
Group Chief Audit Executive (Group CAE)

Nobuhiro Kaminoyama

Mizuho Bank
Members of the Board of Directors

Yasuhiro Kubota

Mizuho Trust & Banking
Members of the Board of Directors
Kei Umeda**

President & CEO (Representative Director)

Fumiaki Tanaka**

Executive Managing Director(Representative Director)
Chief Crisis Management Officer (CCMO) /In charge of Trust Companies Association ofJapan

Masahiro Kihara

Member of the Board of Directors

Member of the Board of Directors
Senior Executive Officer
Group Chief Human Resources Officer(Group CHRO)

President & CEO (Representative Director)

Member of the Board of Directors(Audit & Supervisory Committee Member)

Kazutoshi Isogai

Masahiko Kato **Hiroaki Ehara

Senior Executive Officer
Head of Retail & Business Banking Company

Motonori Wakabayashi **Deputy President (Representative Director)
Chief Risk Officer (CRO)

Hisashi Kikuchi

Masayuki Sugawara

Masahiro Kihara

Mikinao Kitada

Senior Executive Officer
Head of Corporate & Investment Banking
Company

Hidekatsu Take

Senior Executive Officer
Head of Global Corporate & Investment Banking Company /In Charge of Specially Assigned Matters

137

Kenya Koshimizu

Mizuho Financial Group
Members of the Board of Directors
Executive Officers as Defined in
the Companies Act

Mizuho Financial Group

Member of the Board of Directors

Masatsugu Shimono

Member of the Board of Directors

Toshiro Egawa

Member of the Board of Directors(Audit & Supervisory Committee Member)

Member of the Board of Directors(Audit & Supervisory Committee Member)
Member of the Board of Directors(Outside Director, Audit & Supervisory
Committee Member)

Tsutomu Takahashi

Member of the Board of Directors(Outside Director, Audit & Supervisory
Committee Member)

Executive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Data section

Appendix

Toshihiro Teshima

Member of the Board of Directors(Outside Director, Audit & Supervisory
Committee Member)

Mizuho Securities
Members of the Board of Directors
Yoshiro Hamamoto**

President & CEO (Representative Director)

Atsushi Takahashi**

Deputy President (Representative Director)

Itaru Shirakawa**

Deputy President (Representative Director)
Chief Compliance Officer (CCO) / In Chargeof Due Diligence Department / Head of
Global Compliance / Internal Administration
Supervisor

Masaki Seki

Member of the Board of Directors
Chairperson

Masahiro Kihara

Member of the Board of Directors

Yasuto Sengoku

Member of the Board of Directors(Audit & Supervisory Committee Member)

Hisashi Kikuchi

Member of the Board of Directors(Audit & Supervisory Committee Member)

Yasuhisa Hashimoto

Member of the Board of Directors(Outside Director, Audit & Supervisory
Committee Member)

Hiroyuki Suzuki

Member of the Board of Directors(Outside Director, Audit & Supervisory
Committee Member)

Seiji Koga

Member of the Board of Directors(Outside Director, Audit & Supervisory
Committee Member)
Notes:
1. * indicates that Chairperson (Kaicho) Imaiengages in our external activities, but does notchair the Board.
2. * * indicates directors concurrently serving as
executive officers.
3. M
 izuho Financial Group executive officers as
defined in our internal regulations have not been
listed.
4. E xecutive officers, excluding the directors
concurrently serving as executive officers andexecutive officers responsible for global regional
operations of Mizuho Bank, have not been listed.
5. E xecutive officers, excluding the directors
concurrently serving as executive officers ofMizuho Trust & Banking and Mizuho Securities,
have not been listed.
(As of June 23, 2023)

Integrated Report 2023

138

Location of offices outside Japan (As of June 30, 2023)
Network of Mizuho Bank
Asia and Oceania(Country/Region)
Australia
Sydney Branch

Level 29, 60 Martin Place, Sydney NSW 2000 Australia
Tel 61-2-8273-3888

CambodiaPhnom Penh Branch
1st Floor, AEON MALL Phnom Penh (I), No132,
Samdach Sothearos Blvd, Sangkat Tonle Basak,
Khan Chamkar Mon, Phnom Penh, Cambodia
Tel 855-23-964-490

China
Mizuho Bank (China), Ltd.
21st Floor (Operation Counter), 23rd Floor(Reception), Shanghai World Financial Center,
100 Century Avenue, Pudong New Area, Shanghai
200120, The People’s Republic of China
Tel 86-21-3855-8888

Mizuho Bank (China), Ltd.
Shanghai Hongqiao Sub-Branch
Room 504; 510; 511; 515 (Nominal No. Room A601; A602;
B601; B602), No. 1226 South Shenbin Road, Minhang District,
Shanghai 201106, The People’s Republic of China
Tel 86-21-3411-8688

Mizuho Bank (China), Ltd.
Beijing Branch
8th Floor, West Wing, World Financial Center,
No. 1 Dong San Huan Zhong Road, Chaoyang District,
Beijing 100020, The People’s Republic of China
Tel 86-10-6525-1888

Mizuho Bank (China), Ltd.
Dalian Branch
23rd Floor, 24th Floor-A, Shenmao Building,
147 Zhongshan Road, Xigang District,
Dalian, Liaoning Province 116011,
The People’s Republic of China
Tel 86-411-8360-2543

Mizuho Bank (China), Ltd.
Guangzhou Branch
25th Floor, International Finance Place, No. 8 Huaxia Road,
Zhujiang New Town, Tianhe District, Guangzhou,
Guangdong Province 510623,
The People’s Republic of China
Tel 86-20-3815-0888

Mizuho Bank (China), Ltd.
Hefei Branch
Room No. 1902-1907, No. 7 Office Building Wanda Plaza,
130 Maanshan Street, Baohe District, Hefei,
Anhui Province, The People’s Republic of China
Tel 86-551-6380-0690

Mizuho Bank (China), Ltd.
Qingdao Branch
44th Floor, Qingdao International Finance Center,
59 Hong Kong Middle Road, Shinan District, Qingdao,
Shandong Province 266071,
The People’s Republic of China
Tel 86-532-8097-0001

Mizuho Bank (China), Ltd.
Shenzhen Branch
30th Floor, Huanggang Business Center Tower1,
Jintian Road, Futian District, Shenzhen,
Guangdong Province 518046,
The People’s Republic of China
Tel 86-755-8282-9000

Mizuho Bank (China), Ltd.
Suzhou Branch
17th Floor, Genway Building, 188 Wangdun Road,
Suzhou Industrial Park, Suzhou, Jiangsu Province 215123,
The People’s Republic of China
Tel 86-512-6733-6888

139

Mizuho Financial Group

Mizuho Bank (China), Ltd.
Tianjin Branch
11th Floor, International Financial Center Building,No.136 Chifeng Road, Heping District, Tianjin,
The People’s Republic of China
Tel 86-22-6622-5588

Mizuho Bank (China), Ltd.
Wuhan Branch

New Delhi - Gurugram Branch
5th floor, Oberoi Corporate Tower, Building No.11,
DLF Cyber City, Phase-II, Gurugram,
Haryana-122 002, India
Tel 91-124-4851900

Ahmedabad Branch
Office-A402, 4th floor, Commerce House-5,
Nr. Vodafone House, Corporate Road, Prahladnagar,
Ahmedabad, Gujarat-380 051, India
Tel 91-79-4014-4666

5th Floor, Tower A, New World Center Tower,
634 Jiefang Avenue, Hankou, Wuhan,
Hubei Province 430032,
The People’s Republic of China
Tel 86-27-8342-5000

Indonesia
PT. Bank Mizuho Indonesia

Mizuho Bank (China), Ltd.
Wuxi Branch

Menara Astra, 53rd Floor, Jl. Jend. Sudirman Kav.
5-6, Jakarta 10220, Republic of Indonesia
Tel 62-21-5091-0888

8th Floor, Wuxi SI Park B, No. 16 Changjiang Road,
WND, Wuxi, Jiangsu Province 214028,
The People’s Republic of China
Tel 86-510-8522-3939

Korea
Seoul Branch

Mizuho Bank (China), Ltd.
Changshu Sub-Branch
Room 701-704, Kechuang Building, No. 33 Dongnan Road,
Changshu New & Hi-tech Industrial Development Zone,
Jiangsu Province, 215500, The People’s Republic of China
Tel 86-512-6733-6888

Mizuho Bank (China), Ltd.
Dalian Economic & Technological
Development Area Sub-Branch
22nd Floor, International Business Building of Gugeng,
No. 81 Hongmei Area, Dalian Economic & Technological
Development Area, Dalian, Liaoning Province 116600,
The People’s Republic of China
Tel 86-411-8793-5670

Mizuho Bank (China), Ltd.
Kunshan Sub-Branch
Room D,E, 18th Floor, Dongan Building,
No. 258 Chunxu Road, Development Zone Kunshan City,
Kunshan, Jiangsu Province 215300,
The People’s Republic of China
Tel 86-512-6733-6888

Nanjing Representative Office
Room 16D, Nanjing IFC, No.1 Hanzhong Road, Qinhuai
District, Nanjing, Jiangsu Province 210005,
The People’s Republic of China
Tel 86-25-8332-9379

Xiamen Representative Office
Room 2102, The Bank Center, No. 189 Xiahe Road,
Siming District, Xiamen, Fujian Province 361003,
The People’s Republic of China
Tel 86-592-239-5571

Hong Kong
Hong Kong Branch
13/F, K11 Atelier, 18 Salisbury Road, Tsim Sha Tsui,
Kowloon, Hong Kong, S.A.R.,
The People’s Republic of China
Tel 852-2306-5000

India
Bangalore - Devanahalli Branch#462/440/339, 2nd floor, Near Jain Temple,
NH 7/4-207, B. B. Road, Vijayapura Cross, Devanahalli,
Bangalore, Karnataka-562 110, India
Tel 91-80-4968-2000

Chennai Branch
Unit-11B, 11th floor, Prestige Palladium Bayan,Nos. 129 to 140, Greams Road, Chennai,
Tamil Nadu-600 006, India
Tel 91-44-4928-6600

Mumbai Branch
Level-17, Tower-A, Peninsula Business Park,
Senapati Bapat Marg, Lower Parel, Mumbai,
Maharashtra-400 013, India
Tel 91-22-4911-2000

5th Floor, Seoul Finance Center, 136,
Sejong-daero, Jung-gu, Seoul, 04520, Korea
Tel 822-3782-8500

Malaysia
Labuan Branch
Level 9 (B) & (C), Main Office Tower,
Financial Park Labuan, Jalan Merdeka,
87000 Federal Territory of Labuan, Malaysia
Tel 60-87-417766

Labuan Branch, Kuala Lumpur
Co-Located Office
Level 27, Menara Maxis, Kuala Lumpur City Centre,
50088 Kuala Lumpur, Malaysia
Tel 60-3-2070-6880

Mizuho Bank (Malaysia) Berhad
Level 27, Menara Maxis, Kuala Lumpur City Centre,
50088 Kuala Lumpur, Malaysia
Tel 60-3-2058-6881

Myanmar
Yangon Branch
Sedona Business Suites, Level 4,
No. 1 Ka Ba Aye Pagoda Road, Yankin Township, Yangon,
Republic of the Union of Myanmar
Tel 95-1-860-5501

Yangon Branch Thilawa Front Office
Room No. 204, Administration Building,Corner of Thilawa Development Road and Dagon-Thilawa
Road, Thilawa SEZ, Thanlyin Township, Yangon,
Republic of the Union of Myanmar
Tel 95-1-230-9046

Philippines
Manila Branch
25th Floor, Zuellig Building, Makati Avenue corner Paseo deRoxas, Makati City 1225, Metro Manila, Philippines
Tel 63-2-8860-3500

Singapore
Singapore Branch
12 Marina View, #08-01 Asia Square Tower 2,
Singapore 018961, Republic of Singapore
Tel 65-6805-2000

TaiwanKaohsiung Branch
12th Floor, No. 2, Chung Cheng 3rd Road,
Kaohsiung 800, Taiwan
Tel 886-7-236-8768

Taichung Branch
8th Floor, No. 169, Fuhui Parkway, Taichung 407, Taiwan
Tel 886-4-2374-6300

Taipei Branch
8-9th Floor, Cathay Landmark Square,
68 Zhong Xiao East Road, Xinyi District,Taipei, Taiwan
Tel 886-2-8726-3000

Executive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Thailand
Bangkok BranchSouth Africa
Johannesburg Representative Office

98 Sathorn Square Office Tower 32nd – 35th floor,
North Sathorn Road, Silom, Bangrak, Bangkok 10500,
ThailandTel 66-2-163-2999, 2-002-0222

2nd Floor, West Tower, Maude Street,
Nelson Mandela Square, Sandton 2196, South Africa,
P.O. Box 785553, Sandton 2146
Tel 27-11-881-5410

Eastern Seaboard Branch

Spain
Mizuho Bank Europe N.V.
Madrid Branch

300/7 ESIE Plaza 2, Unit No. 2-05 Moo 1, Tambol Ta Sit,
Amphoe Pluak Daeng, Rayong 21140, Thailand
Tel 66-3-899-7000

VietnamHanoi Branch
4th Floor, 63 LTT Building, 63 Ly Thai To Street, Hanoi,
Socialist Republic of Vietnam
Tel 84-24-3936-3123/3124

Ho Chi Minh City Branch
18th Floor, Sun Wah Tower,
115 Nguyen Hue Boulevard, District 1,
Ho Chi Minh City, Socialist Republic of Vietnam
Tel 84-28-3827-8260/8292

Europe, the Middle East and Africa(Country/Region)

AustriaMizuho Bank Europe N.V.
Vienna Branch

Calle Orense 34, Planta 8, Edificio Iberia Mart Ⅱ,
28020 Madrid, Spain
Tel 34-91-598-2905

The NetherlandsMizuho Bank Europe N.V.
Atrium Amsterdam, 3rd Floor, Strawinskylaan 3053,
1077 ZX Amsterdam, The Netherlands
Tel 31-20-5734343

TurkeyIstanbul Representative OfficeEsentepe Mah. Buyukdere Cad. No:175
Ferko Signature 21st Floor Suite:5, 34394,
Sisli, Istanbul, Turkey
Tel 90-212-932-8251

UAE
Abu Dhabi Branch

DC Tower 26th Floor, Donau-City-Strasse 7,1220 Vienna, Austria
Tel 43-1-269-1000-00

Al Sila Tower, 24th Floor, Abu Dhabi Global Market Square,
Al Maryah Island, P.O. Box No:764647, Abu Dhabi, UAE
Tel 971-2-694-8551

Bahrain
Bahrain Representative Office

DIFC Branch-Dubai
The Gate Building, East Wing, Level 5, Dubai International
Financial Centre, P.O. Box No: 506607, Dubai, UAE
Tel 971-4-279-4400

Unit 48d, 48th Floor, Harbour Towers - West, Bahrain
Financial Harbour, King Faisal Highway, Municipality No. 4801,
Building 1459, Road 4626, Block 346, Manama, Kingdom of
Bahrain(P.O.BOX 5759, Manama, Bahrain)
Tel 973-17-224522

United Kingdom
London Branch

BelgiumMizuho Bank Europe N.V.
Brussels Branch

RussiaAO Mizuho Bank (Moscow)

Avenue Louise 480, 1050 Brussels, Belgium
Tel 32-2-645-5280

FranceParis Branch
Washington Plaza, 40, rue Washington,
75008 Paris, France
Tel 33-1-5383-4000

GermanyDuesseldorf Branch
Benrather Strasse 18-20, 40213 Duesseldorf, Germany
Tel 49-211-13020

Frankfurt Branch
TaunusTurm 34th Floor, Taunustor 1, 60310 Frankfurt am
Main, Germany
Tel 49-69-29-72-95-0

Iran
Tehran Representative Office
Unit 602, No.22, 7th Street, Velenjak Avenue,
Tehran, Iran, Postal code: 1985834706
Tel 98-21-2635-4711/4722

Italy
Milan Branch

30 Old Bailey, London EC4M 7AU, UK
Tel 44-20-7012-4000

5th floor, 20, bld. 1, Ovchinnikovskaya nab.,
115035 Moscow, Russian Federation
Tel 7-495-212-0333

The Americas(Country/Region)

BrazilBanco Mizuho do Brasil S.A.
Avenida Presidente Juscelino Kubitschek,
2041-Torre E-7 andar, Vila Olimpia, Sao Paulo, SP,
CEP. 04543-011, Brazil
Tel 55-11-5504-9844

CanadaCanada Branch
100 Yonge Street, Suite 1102, Toronto, Ontario,
Canada, M5C 2W1
Tel 1-416-874-0222

Calgary Office
Suite 1000, 888 3rd Street, South West, Calgary, Alberta,
Canada, T2P 5C5
Tel 1-403-444-5375

Chile
Santiago Representative Office

6th Floor, Largo Augusto 7, 20122 Milan, Republic of Italy
Tel 39-02-778-0001

Av. Apoquindo 3650, Oficina 1201, Las Condes,
Santiago, Chile
Tel 56-2-3203-5773

Saudi Arabia
Mizuho Saudi Arabia Company

Mexico
Mexico Representative Office

North Lobby 1st Floor, Al Faisaliah Tower,
King Fahd Road, Olaya District, Riyadh 11544,
Kingdom of Saudi Arabia
Tel 966-11-273-4111

Paseo de la Reforma 342, Piso 10, Colonia Juarez,
Delegacion Cuauhtemoc, 06600, Ciudad de Mexico, MexicoTel 52-55-5281-5037

Data section

AppendixMizuho Bank Mexico, S.A.
Paseo de la Reforma 342, Piso 10, Colonia Juarez,
Delegacion Cuauhtemoc, 06600, Ciudad de Mexico, MexicoTel 52-55-5281-5037

Mizuho Bank Mexico, S.A.
Leon Office
Blvd. Paseo de los Insurgentes 3356, Torre 2,
nivel 2, Col. San Jose de las Piletas, 37530 Leon,
Guanajuato, MexicoTel 52-477-6885-248/249

USA
Chicago Branch
311 South Wacker Drive, Suite 700, Chicago, IL 60606,
USA
Tel 1-312-855-1111

Los Angeles Branch
350 South Grand Avenue, Suite 1500, Los Angeles,
CA 90071, USA
Tel 1-213-243-4500

New York Branch
1271 Avenue of the Americas, New York, NY 10020, USA
Tel 1-212-282-3000

1251 Building Branch
1251 Avenue of the Americas, New York, NY 10020, USA
Tel 1-212-282-3000

Atlanta Representative Office3353 Peachtree Road NE, Atlanta Financial Center,
Suite 500, Atlanta, GA 30326, USA
Tel 1-404-364-1550

Dallas Representative Office5345 Towne Square Drive, Suite 285, Plano, TX 75024,
USA
Tel 1-972-324-3350

Houston Representative Office
2 Houston Center, 909 Fannin Street, Suite 1600, Houston,
TX 77010, USA
Tel 1-713-499-4800

San Francisco Representative Office
235 Pine Street, 19th Floor, San Francisco, CA 94104, USA
Tel 1-415-365-1750

Washington, D.C. Representative Office1275 Pennsylvania Avenue, NW, Suite 310, Washington,
DC 20004, USA
Tel 1-202-292-5080

Mizuho Bank (USA)1271 Avenue of the Americas, New York, NY 10020, USA
Tel 1-212-282-3000

Mizuho Bank (USA)Atlanta Representative Office3353 Peachtree Road NE, Atlanta Financial Center,
Suite 500, Atlanta, GA 30326, USA
Tel 1-404-364-1550

Mizuho Bank (USA)
Chicago Representative Office
311 South Wacker Drive, Suite 700, Chicago, IL 60606,
USA
Tel 1-312-855-1111

Mizuho Bank (USA)
Dallas Representative Office5345 Towne Square Drive, Suite 285, Plano, TX 75024,
USA
Tel 1-972-324-3350

Mizuho Bank (USA)
Houston Representative Office
2 Houston Center, 909 Fannin Street, Suite 1600, Houston,
TX 77010, USA
Tel 1-713-499-4800

Mizuho Bank (USA)Los Angeles Representative Office
350 South Grand Avenue, Suite 1500, Los Angeles,
CA 90071, USA
Tel 1-213-243-4500

Integrated Report 2023

140

Mizuho Bank (USA)1251 Building Branch

Network of Mizuho Trust & Banking

1251 Avenue of the Americas, New York, NY 10020, USA
Tel 1-212-282-3000

Mizuho Trust & Banking(Luxembourg) S.A.

Mizuho Bank (USA)San Francisco Representative Office

1B, rue Gabriel Lippmann, L-5365 Munsbach,Grand Duchy of Luxembourg
Tel 352-42-16-17-1

235 Pine Street, 19th Floor, San Francisco, CA 94104, USA
Tel 1-415-365-1750

Mizuho Desk

Network of Mizuho Securities(Country/Region)

Beijing Representative OfficeUAE
Mashreqbank psc

8011, Chang-Fu-Gong Office Building, Jia 26,
Jianguomenwai Street, Chaoyang District,
Beijing 100022, The People’s Republic of China
Tel 86-10-6523-4779

Japan Desk, Plot No. 345, Umniyati Street(off Al Asayel Street), Burj Khalifa
Community PO Box 1250, Dubai, UAE
Tel 971-4-363-2053“Mizuho Desk”
By forming tie-ups with major financial institutions inregions where Mizuho does not possess offices, weoffer our clients financial services through various
institutions. (Transactions are conducted directly
between the client and the local financial institution.)

Shanghai Representative OfficeMizuho Securities USA LLC
Houston Office
2 Houston Center, 909 Fannin Street, Suite 1600, Houston,
TX 77010, USA
Tel 1-713-499-4800

Mizuho Securities USA LLC
Los Angeles Office
350 South Grand Avenue, Suite 1500, Los Angeles,
CA 90071, USA
Tel 1-213-243-4500

Mizuho Securities USA LLC
San Francisco OfficeMizuho Securities Asia Limited

Mizuho Securities Canada Inc.

14-15/F, K11 Atelier, 18 Salisbury Road,
Tsim Sha Tsui, Kowloon, Hong Kong, S.A.R.,
The People’s Republic of China
Tel 852-2685-2000

5th Floor, Seoul Finance Center, 136,
Sejong-daero, Jung-gu, Seoul, 04520, Korea
Tel 822-2206-1800

Mizuho Securities Asia Limited(Sydney Office)Level 29, 60 Martin Place, Sydney NSW 2000 Australia
Tel 612-7904-3555

Mizuho Securities India Private Limited
Level-17, Tower-A, Peninsula Business Park,
Senapati Bapat Marg, Lower Parel, Mumbai,
Maharashtra-400 013, India
Tel 91-22-4353-7600

Mizuho Securities (Singapore) Pte. Ltd.
12 Marina View, #08-02 Asia Square Tower 2,
Singapore 018961, Republic of Singapore
Tel 65-6603-5688

Mizuho International plc
30 Old Bailey, London EC4M 7AU, UK
Tel 44-20-7236-1090

Mizuho International plc(DIFC Branch)
The Gate Building, East Wing, Level 5,
Dubai International Financial Centre,
P.O.Box No:507206, Dubai, UAE
Tel 971-4-427-5312

Mizuho Securities Europe GmbH
TaunusTurm 34th Floor, Taunustor 1,
60310 Frankfurt am Main, Germany
Tel 49-69-42729-3000

Mizuho Securities Europe GmbH
Madrid Branch
Calle Orense 34, Planta 8, Edificio Iberia Mart II,
28020 Madrid, Spain
Tel 34-917-90-7551

Mizuho Securities Europe GmbH
Paris Branch
Washington Plaza, 40, rue Washington,
75008 Paris, France
Tel 33-1-7037-2700

Mizuho Securities USA LLC
1271 Avenue of the Americas, New York, NY 10020, USA
Tel 1-212-209-9300

Mizuho Securities USA LLC
Boston Office
125 High Street, 4th Floor, Boston, MA 02110, USA
Note: Address changed to the following as of July 10, 2023.
125 High Street, 23rd Floor, Boston, MA 02110, USA

Tel 1-617-235-1722

Mizuho Financial Group

311 South Wacker Drive, Suite 700, Chicago,
IL 60606, USA
Tel 1-312-294-8800

T60 17th Floor, Shanghai World Financial Center,
100 Century Avenue, Pudong New Area, Shanghai
200120, The People’s Republic of China
Tel 86-21-6877-8000

Mizuho Securities Asia Limited
Seoul Branch141

Mizuho Securities USA LLC
Chicago Office

235 Pine Street, 19th Floor, San Francisco, CA 94104, USA
Tel 1-415-268-5500
1271 Avenue of the Americas, New York, NY 10020, USA
Tel 1-212-209-9300

Executive messages / Features

Mizuho’s value creation process

Business strategies for value creation

Governance for value creation

Data section

Appendix

Investor information
Date of establishment
January 8, 2003

Convocation of general meetings of shareholders
An ordinary general meeting of shareholders of the Company
shall be convened no later than 3 months from the last day ofeach business year and an extraordinary general meeting ofshareholders shall be convened whenever necessary.

Paid-in capital¥2,256.7 billion
Issued shares
2,539,249,894 shares
Number of shareholders
Common stock: 653,321
Major shareholders (common stock)
Shares held

Percentageof shares
outstanding(%)

1

The Master Trust Bank of Japan, Ltd. 404,529,400 15.93(Trustee account)2

Custody Bank of Japan, Ltd.
(Trustee account)

130,336,500

5.13

3

JPMorgan Securities Japan Co., Ltd.

79,226,649

3.12

4

STATE STREET BANK WEST CLIENT– TREATY 505234

49,696,645

1.95

5

JPMorgan Chase Bank 385781

33,879,142

1.33

6

Custody Bank of Japan, Ltd.
(Taxable trust money account)

25,911,450

1.02

7

Custody Bank of Japan, Ltd.
(Trustee account 4)25,384,400

1.00

8

SSBTC Client Omnibus Account25,326,904

0.99

9

STATE STREET BANK AND TRUSTCOMPANY 505103

25,234,937

0.99

23,857,823

0.93

10 SMBC Nikko Securities Inc.

Notes: 1. F igures for the percentage of shares outstanding are rounded down
to the nearest second decimal place.
2. T he percentages of shares outstanding are calculated by excluding
the treasury stock (826,676 shares).
(As of March 31, 2023)

Stock listing(common stock)
Tokyo Stock Exchange
Accounting auditors
Ernst & Young ShinNihon LLC
Shareholder register manager
Mizuho Trust & Banking Co., Ltd.

Record date
1. T he Company shall deem shareholders having voting rights
appearing in writing or electronically in the register ofshareholders as of the end of March 31 of each year as theshareholders who are entitled to exercise their rights at theordinary general meeting of shareholders for the relevantbusiness year.
2. T he provision of the preceding paragraph shall apply mutatis
mutandis to the record date for voting rights at the general
meetings of holders of classes of stock, where there is amatter to be resolved at an ordinary general meeting ofshareholders that requires, in addition to such resolution, aresolution by the relevant general meeting of holders of classof stock.
3. In addition to the preceding two paragraphs, the Company
may set an extraordinary record date, when necessary, by adetermination by Executive Officer(s) under the authority
delegated by the Board of Directors and upon giving a priorpublic notice thereof.
Organizations that decide dividends from surplus
The Company may decide distribution of dividends from surplus
and other matters provided for in each item of Article 459,
Paragraph 1 of the Companies Act of Japan, by a resolution of
the Board of Directors, unless otherwise provided for in laws or
regulations.
Record date for distribution of dividends from surplus
The record dates for distribution of dividends from surplus of theCompany shall be March 31 and September 30 of each year.

ADR* information
Outline of Mizuho Financial Group’s ADR
1. Exchange :New York Stock Exchange
2. Ticker symbol :MFG
3. CUSIP :60687Y109
4. Conversion ratio :5 ADRs = 1 common stock
5. Depositary bank :The Bank of New York Mellon
6. Local custodian bank : Mizuho Bank, Ltd.
*A DRs are securities issued for the purpose of trading in the US in place of
the underlying stock of foreign companies. As ADRs are registered with the
SEC as US securities, they are traded, settled and held in custody insubstantively the same manner as the stocks of US companies. ADR is anacronym for American Depositary Receipts.

Share unit
100 sharesFiscal year
April 1 to March 31

Integrated Report 2023

142

143

Mizuho Financial Group2023/09/06 10:45:40 / 23022376_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Financial Analysis[Under Japanese GAAP]

145

Key Indicators of Mizuho Financial Group, Inc.

147

Status of Asset Quality

144

Financial Analysis-Index

2023/09/06 10:45:40 / 23022376_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Financial Analysis

Key Indicators of Mizuho Financial Group, Inc.

Key Indicators of Mizuho Financial Group, Inc. (Consolidated)
Billions of yen

As of or for the Fiscal Years ended March 31,

Total Income

2023

¥

5,829.62022¥

4,041.22021¥

3,360.2

2020¥

3,988.9

2019¥

3,936.9

Profit Attributable to Owners of Parent

555.5

530.4

471.0

448.5

96.5

Comprehensive Income

277.6

47.1

931.8

7.6

(110.5)Net Assets

9,208.4

9,201.0

9,362.2

8,663.8

9,194.0

Total Assets

254,258.2

237,066.1

225,586.2

214,659.0

200,792.2

Deposits

164,287.3

155,699.8

150,504.9

144,472.2

137,649.5

Loans and Bills Discounted

88,687.1

84,736.2

83,704.6

83,468.1

78,456.9

Securities

37,363.1

44,641.0

43,697.2

34,907.2

29,774.4

3,603.98

3,581.39

3,650.87

3,372.96

345.00219.20209.27185.75176.873.80

219.19209.26185.75176.86

3.80

16.05%

17.53%

16.87%

17.25%

18.85%

13.91%

15.00%

14.37%

14.52%

15.94%
12.76%(Note 1)Net Assets per Share (Yen)Profit Attributable to Owners of Parent(Note 1)
per Share (Yen)
Diluted Profit Attributable to Owners of Parent(Note 1)
per Share (Yen)
Total Capital Ratio(Note 2)(International Standard (Basel III))
Tier 1 Capital Ratio(Note 2)(International Standard (Basel III))
Common Equity Tier 1 Capital Ratio(Note 2)(International Standard (Basel III))11.80%

12.46%

11.63%

11.65%Net Return on Equity

6.1%

5.7%

5.2%

5.1%

1.0%

PER (Times)

8.56x

7.48x

8.60x

6.98x

44.99xCash Flow from Operating Activities

8,867.2

4,917.1

16,613.2

1,901.8(2,636.0)

Cash Flow from Investing Activities

6,605.6(1,860.4)(9,763.7)(5,808.5)

5,487.1

Cash Flow from Financing Activities(611.1)(522.0)40.8(281.8)(18.6)

65,825.6

50,136.2

46,981.3

39,863.6

44,254.8

Cash and Cash Equivalents at the end of the fiscal year

Notes: 1. MHFG adopted the share consolidation of the shares of common stock on the basis of one post-consolidation share per ten pre-consolidation shares effective as of October 1, 2020. Net Assets
per Share of Common Stock, Profit Attributable to Owners of Parent per Share of Common Stock and Diluted Profit Attributable to Owners of Parent per Share of Common Stock are calculated
under the assumption that the share consolidation had been adopted at the beginning of fiscal 2020.
2. Total Capital Ratio, Tier 1 Capital Ratio and Common Equity Tier 1 Capital Ratio are based on the “Standards for Determining the Status of Capital Adequacy in consideration of assets held by abank holding company and by its subsidiaries, in accordance with Banking Law Article 52-25” (Financial Services Agency Ordinance Announcement No.20, March 27, 2006)

145

Key Indicators of Mizuho Financial Group, Inc. (Consolidated)

2023

Operating Income
Net Income
Common Stock and Preferred Stock
Number of Shares Issued and Outstanding(

Common Stock

¥

2022

316.3
265.6
2,256.7¥

5,661.1
15,323.1(Note 1)2,233.01
Net Assets per Share (Yen)Dividends per Share (Yen) (Interim Dividends per Share) (Yen)(Note 2)
85.00
Common Stock
Common Stock(Note 1)Net Income per Share (Yen)(Note 1)
Diluted Net Income per Share (Yen)PER (Times)
Dividend Propensity

320.8
405.5
2,256.7

¥

2020

268.9
226.6
2,256.7

¥

2019

75.4
34.0
2,256.7

¥

331.3
354.5
2,256.7) ( 2,539,249,894shares) ( 2,539,249,894shares) ( 2,539,249,894shares) (25,392,498,945shares) (25,392,498,945shares)

Net Assets
Total Assets

(

2021

) (

42.50)
104.77104.7717.92x81.12%(

5,605.4
14,364.2
2,210.76

5,397.7
14,169.2
2,128.26

5,362.4
12,823.7
2,113.67

5,518.7
11,637.1
217.52

80.00

41.25

7.50

7.50

40.00)
159.92
159.919.79x
50.02%

(

3.75)
89.36
89.36
17.89x
83.92%

(

3.75)
13.42
13.42
92.07x558.69%

(

3.75)
13.97
13.97
12.25x53.65%

Appendix

Data section

Governance for value
creation

Notes: 1. MHFG adopted the share consolidation of the shares of common stock on the basis of one post-consolidation share per ten pre-consolidation shares effective as of October 1, 2020. Net Assets
per Share of Common Stock, Profit Attributable to Owners of Parent per Share of Common Stock and Diluted Profit Attributable to Owners of Parent per Share of Common Stock are calculated
under the assumption that the share consolidation had been adopted at the beginning of fiscal 2020.
2. MHFG adopted the share consolidation of the shares of common stock on the basis of one post-consolidation share per ten pre-consolidation shares effective as of October 1, 2020. Dividends
per Share as of the Fiscal Year ended March 31,2021 is the sum of Interim Dividends per Share and Year-end Dividends per share. Interim Dividends per Share and Year-end Dividends per
Share are the dividends on the basis of pre-consolidation share and post-consolidation share respectively.

Mizuho’s value
creation process

Billions of yen

As of or for the Fiscal Years ended March 31,

Business strategies forvalue creation

Key Indicators of Mizuho Financial Group, Inc. (Non-Consolidated)

Executive messages /Features2023/09/06 10:45:40 / 23022376_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）146

Key Indicators of Mizuho Financial Group, Inc. (Consolidated)2023/09/06 10:45:40 / 23022376_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Financial Analysis

Status of Asset Quality○ Credit-related Costs
Credit-related Costs (Consolidated)
Billions of yen

For the Fiscal Years ended March 31,

2023

Credit-related Costs
Expenses related to Portfolio Problems (including Reversal of(Provision for) General Reserve for Possible Losses on Loans)
Losses on Write-offs of Loans
Gains on Reversal of Reserves for Possible Losses on Loans andothersCredit Costs for Trust Accounts

¥

2022

89.3

¥

Change235.1¥(145.8)

96.7
16.2

255.9
11.9

(159.2)
4.2

(7.4)
—

(20.7)—

13.3—○ Overview of Non-performing Loans (NPLs) as of March 31, 2023 (the Two Banks) (Banking Accounts)(Billions of yen)

1.SELF-ASSESSMENT
Categorization

ObligorBankrupt and Substantially
Bankrupt Obligors
34.0

Non-Categorization

Category II

34.0
Collateral, Guarantees, etc.:
Reserves for Possible Losses:

28.9
5.1

Category III

Category IV

Reserve
Ratio
100%

DirectWrite-offs

Intensive Control Obligors
658.4

Watch Obligors
Claims for Special
Attention
354.9

515.8

142.6

Collateral, Guarantees, etc.: 172.8
Reserves for Possible Losses: 342.9

Reserve
Ratio
70.6%

Reserve Ratio against
Uncovered Portion
26.2%
Collateral, Guarantees, etc.: 103.4
Reserves for Possible Losses: 66.0

2.Status of Non Performing Loans based on the
Banking Act ("BA") and the Financial
Reconstruction Act ("FRA")
Claims against Bankrupt and Substantially Bankrupt
Obligors
34.0
Coverage Ratio
100%

Amounts forreserves arerecorded under
NonCategorization

Claims with Collection Risk
658.4
Coverage Ratio
78.3%

354.9

Restructured Loans

Coverage Ratio
47.7%

Special Attention Obligors

354.6

Total Coverage Ratio
68.6%

Other Watch Obligors

Normal Obligors

Loans Past Due for 3
Months or More
0.2

Claims for Special
Attention (Notes 1)

Claims against Special Attention Obligors-Coverage Ratio: 51.5%-Reserve Ratio for Uncovered Portion: 29.7%-Reserve Ratio against Total Amount of Claims: 20.5%
Reserve Ratio against Total Amount of Claims·Other Watch Obligors: 2.91%·Normal Obligors:
0.09%

Total
104,156.9

Total
1,047.4

Notes: 1. Claims for Special Attention is denoted on an individual loans basis. Claims against Special Attention Obligors includes all claims, not limited to Claims for Special Attention.

147

Credit-related Costs、Overview of Non-performing Loans (NPLs)

Executive messages /Features2023/09/06 10:45:40 / 23022376_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）○ Status of Non Performing Loans based on the Banking Act (“BA”) and the Financial Reconstruction Act (“FRA”)
Non Performing Loans based on the BA and the FRA (Consolidated)(Consolidated)
Billions of yen

¥

2022

43.8
655.3
372.4
0.2
372.1
¥ 1,071.6
100,457.0¥101,528.7

¥

50.8
722.2
354.0
2.4
351.5
¥ 1,127.1
96,224.9¥ 97,352.0

2023

2022

Change¥(6.9)(66.8)
18.3
(2.2)
20.6
¥
(55.4)
4,232.1¥ 4,176.7

Note: Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.
Billions of yen

Amount of Partial Direct Write-offs

¥

87.2

¥

108.8

Change¥(21.6)%NPL ratio [1] / [2]

1.05%

1.15%

2023

2022

(0.10)%(Trust Accounts)

Mizuho’s value
creation process

Claims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk
Claims for Special Attention
Loans Past Due for 3 Months or More
Restructured Loans
Sub-total [1]Normal Claims
Total [2]2023

Business strategies forvalue creation

As of March 31,

¥

¥
¥

—
—
—
—
—
—
2.8
2.8

¥

¥
¥

—
—
—
—
—
—
3.8
3.8

¥

¥
¥

—
—
—
—
—
—
(1.0)
(1.0)

Data section

Claims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk
Claims for Special Attention
Loans Past Due for 3 Months or More
Restructured Loans
Sub-total
Normal Claims
Total

ChangeGovernance for value
creation

Billions of yen

As of March 31,(Consolidated and Trust Accounts)
Billions of yen

Claims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk
Claims for Special Attention
Loans Past Due for 3 Months or More
Restructured Loans
Sub-total
Normal Claims
Total

2023

¥

43.8
655.3
372.4
0.2
372.1
¥ 1,071.6
100,459.8¥101,531.5

2022

¥

50.8
722.2
354.0
2.4
351.5
¥ 1,127.1
96,228.7¥ 97,355.8

Change¥(6.9)(66.8)
18.3
(2.2)
20.6
¥
(55.4)
4,231.1¥ 4,175.6

Appendix

As of March 31,

148

Status of Disclosed Claims under the FRA

2023/09/06 10:45:40 / 23022376_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Financial Analysis

Status of Asset Quality

Reserves for Possible Losses on Loans
Billions of yen

As of March 31,

Reserves for Possible Losses on Loans
General Reserve for Possible Losses on Loans
Specific Reserve for Possible Losses on Loans
Reserve for Possible Losses on Loans to Restructuring Countries

2023

¥

720.4
313.0
363.4
43.9

¥

2022

Change

783.8
269.1
460.0
54.7

¥

(63.4)
43.9(96.5)(10.7)

Note: Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.
Billions of yen

2023

Amount of Partial Direct Write-offs

2022

Change

109.1

¥

2023

2022

Change67.22%

69.54%¥

87.5¥(21.5)

Reserve Ratios for Non Performing Loans based on the BA and the FRA%

As of March 31,

After Partial Direct Write-offs
Note: Reserve Ratio = Reserves for Possible Losses on Loans / Total Non-Accrual, Past Due & Restructured Loans.

149

Status of Disclosed Claims under the FRA(2.32)%

As of March 31,

2022
Outstanding
Balance Composition

ChangeOutstanding
Balance Composition

Domestic Total (excluding Loans Booked Offshore)
Manufacturing
Agriculture & Forestry
Fishery
Mining, Quarrying Industry & Gravel Extraction Industry
Construction
Utilities
Communication
Transportation & Postal Industry
Wholesale & Retail
Finance & Insurance
Real Estate
Commodity Lease
Service Industries
Local Governments
Governments
Other
Overseas Total (including Loans Booked Offshore)
Governments
Financial Institutions
Other
Total

¥ 56,142.8
9,847.2
47.5
2.7
205.5
902.2
3,398.3
977.3
2,436.0
4,912.7
4,609.2
10,931.2
3,136.3
2,983.7
540.3
1,079.3
10,132.5
32,544.3
148.1
11,448.4
20,947.6¥ 88,687.1¥ 55,450.2
9,771.0
47.5
2.9
220.7
857.8
3,043.3
1,186.8
2,581.5
5,216.3
4,561.9
10,131.5
2,891.9
3,086.0
587.3
836.5
10,426.5
29,285.9
263.8
10,081.0
18,941.0¥ 84,736.2¥

100.00%
17.62
0.09
0.00
0.40
1.55
5.49
2.14
4.66
9.41
8.23
18.27
5.21
5.56
1.06
1.51
18.80
100.0
0.90
34.42
64.68
/

692.5
76.1
0.0
(0.1)
(15.2)(44.4)
354.9(209.4)(145.4)(303.6)
47.3
799.7
244.3
(102.2)(46.9)
242.7(294.0)3,258.3(115.7)
1,367.4
2,006.6¥ 3,950.8/(0.08)(0.01)
0.01(0.03)
0.06
0.56(0.40)(0.32)(0.66)(0.02)
1.20
0.38(0.25)(0.10)
0.41(0.75)/(0.45)
0.76(0.31)/

Note: Domestic Total = MHFG and its domestic consolidated subsidiaries (excluding their overseas offices).
Overseas Total = Overseas offices of MHFG's domestic consolidated subsidiaries and MHFG's overseas consolidated subsidiaries○ Status of Loans by Nationality of Borrowers
Balance of Loans to Restructuring Countries (Consolidated)
As of March 31, 2023

Billions of yen, %As of March 31, 2022

Billions of yen, %Russia¥161.4

Russia¥7.9

Myanmar0.0

Laos

Myanmar
Laos
Total
Ratio to Total Assets

¥

169.4
0.06%

Total
Ratio to Total Assets

205.1
7.3

Data section

100.00%
17.54
0.08
0.01
0.37
1.61
6.05
1.74
4.34
8.75
8.21
19.47
5.59
5.31
0.96
1.92
18.05
100.0
0.45
35.18
64.37
/

Mizuho’s value
creation process

Billions of yen, %2023
Outstanding
Balance Composition

Business strategies forvalue creation

Outstanding Balances by Industry (Consolidated)

Governance for value
creation○ Status of Loans by Industry

Executive messages /Features2023/09/06 10:45:40 / 23022376_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

0.1
¥

212.5
0.08%

Appendix

Note: Listed are loans to the government and related agents in restructuring countries for which Reserves for Possible Losses on Loans to Restructuring Countries are accounted as stipulated under theJapanese Institute of Certified Public Accountants (JICPA) Banking Audit Committee Report No.4.

150

Status of Loans by Industry、Status of Loans by Nationality of Borrowers

2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

151

白頁

2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Basel Regulatory Disclosures

153

Key Metrics

154

Status of Mizuho Financial Group's
Consolidated Capital Adequacy

154

Scope of Consolidation

155

Risk-based Capital

169

Summary of Risk Management and Risk-weighted
Assets (RWA)

171

Linkages between Financial Statements
and Regulatory Exposures

176

Credit Risk

198

Counterparty Credit Risk

207

Securitization Exposures

214

Market Risk

217

Investment or Equity Exposure

217

Operational Risk

218

Composition of Leverage Ratio

220

TLAC Regulations

226

Geographical distribution of credit exposures usedin the countercyclical buffer

226

Indicators for Assessing Global Systemically
Important Banks (G-SIBs)

227

Status of Sound Management of Liquidity Risk

227

Liquidity Coverage Ratio

228

Net Stable Funding Ratio

230

Status of Major Liquid Assets

230

Status of Major Funding

231

Compensation of Directors and Employees

152

Basel Regulatory Disclosures2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Basel Regulatory Disclosures

Key Metrics

Under the capital adequacy ratio regulations agreed upon by the Basel Committee on Banking Supervision, banks are
required to meet certain minimum capital requirements. We calculate our capital adequacy ratio on a consolidated basis
based on “the criteria used by a bank holding company for deciding whether or not the adequacy of equity capital of thebank holding company and its subsidiaries is appropriate in light of the assets owned by the bank holding company and its
subsidiaries pursuant to Article 52-25 of the Banking Law” (Financial Services Agency, or FSA, Notice No.20 issued in2006).
We also calculate our leverage ratio on a consolidated basis according to “the criteria for evaluating the soundness of theleverage, prescribed as supplemental requirements of the criteria used by a bank holding company in deciding whether or
not the adequacy of equity capital of the bank holding company and its subsidiaries is appropriate in light of the assets
owned by the bank holding company and its subsidiaries, pursuant to Article 52-25 of the Banking Law” (FSA Notice No.12
issued in 2019.)
Liquidity ratio regulations agreed upon by the Basel Committee on Banking Supervision require our liquidity coverage ratio
and net stable funding ratio to surpass certain minimum standards. We calculate our consolidated liquidity coverage ratio(the “Consolidated LCR”) and consolidated net stable funding ratio (the “Consolidated NSFR”) in accordance with theregulation “The Evaluation Criterion on the Sound Management of Liquidity Risk Defined, Based on Banking Law Article
52-25, as One of the Criteria for Bank Holding Companies to Evaluate the Soundness of Their Management and the Onesof Their Subsidiaries and Others, which is also One of the Evaluation Criteria on the Soundness of the Banks'Management”(the FSA Notice No. 62 of 2014 (the “Notice No. 62”)).

■ Key Metrics
KM1: Key Metrics
Basel III
Template
No.

Capital1
Common Equity Tier 1 capital
2
Tier 1 capital3
Total capital
Risk weighted assets
4
Risk weighted assets
Capital ratio
5
Common Equity Tier 1 capital ratio
6
Tier 1 capital ratio
7
Total capital ratio
Capital buffer8
Capital conservation buffer requirement
9Countercyclical buffer requirement
10
Bank G-SIB/D-SIB additional requirements
11
Total of bank CET1 specific buffer requirements
CET1 available after meeting the bank's minimum
12
capital requirements
Leverage ratio
13
Total exposures
14
Leverage ratio
Liquidity coverage ratio (LCR)
Total HQLA allowed to be included in the15
calculation
16
Net cash outflows
17
LCR
Net stable funding ratio (NSFR)
18
Available stable funding
19
Required stable funding
20
NSFR(Millions of yen, except percentages)a
As ofMarch 31,2023

b

Key Metrics

d

e

As of
June 30,
2022

As of
March 31,2022

¥8,315,525
9,803,395
11,306,965¥8,305,822
9,786,067
11,355,628¥8,097,740
9,733,177
11,216,597¥8,080,239
9,719,478
11,147,689¥8,067,279
9,713,290
11,351,682

70,434,154

70,892,406

71,336,840

68,664,591

64,730,439

11.80%
13.91%
16.05%

11.71%
13.80%
16.01%

11.35%
13.64%
15.72%

11.76%
14.15%
16.23%

12.46%
15.00%
17.53%

2.50%
0.06%
1.00%
3.56%

2.50%
0.04%
1.00%
3.54%

2.50%
0.01%
1.00%
3.51%

2.50%
0.01%
1.00%
3.51%

2.50%
0.01%
1.00%
3.51%

7.30%

7.21%

6.85%

7.26%

7.96%

219,441,116
4.46%

221,602,145
4.41%

230,856,457
4.21%

229,778,545
4.22%

212,972,004
4.56%

77,599,942

77,561,476

74,062,471

73,800,022

71,174,101¥59,419,441
130.6%¥63,186,015
122.9%¥58,979,192
125.6%¥56,082,219
131.7%¥52,140,978136.5%

112,497,787¥91,786,308
122.5%

109,646,765¥92,645,294
118.3%

109,960,653¥94,839,510
115.9%

107,243,267¥93,699,823
114.4%

106,664,623¥88,703,857
120.2%

Note: Figures of No. 15 to 17 in the table above are calculated based on the average values for the quarter.

153

c

As of
As of
December 31, September 30,
2022
2022

2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Basel Regulatory Disclosures

Consolidated subsidiaries

As of March 31, 2023

As of March 31, 2022

178

163

Our major consolidated subsidiaries are Mizuho Bank, Ltd., Mizuho Trust & Banking Co., Ltd. and Mizuho Securities Co.,Ltd.
The following table sets forth information with respect to our principal consolidated subsidiaries as of March 31, 2023:

Name

Country oforganization

Domestic
Mizuho Bank, Ltd. ……………………………Japan
Mizuho Trust & Banking Co., Ltd. ……………Japan
Mizuho Securities Co., Ltd. …………………Japan
Mizuho Research & Technologies, Ltd. ………Japan
Asset Management One Co., Ltd. ……………Japan
Mizuho Credit Guarantee Co., Ltd. …………Japan
Mizuho Factors, Limited ………………………JapanUC Card Co., Ltd. ……………………………Japan
Mizuho Realty One Co., Ltd. …………………Japan
Mizuho Business Service Co., Ltd ……………Japan
Mizuho Realty Co., Ltd. ………………………Japan
Defined Contribution Plan Services Co., Ltd. …Japan
Mizuho-DL Financial Technology Co., Ltd. …Japan
Mizuho Capital Co., Ltd. ………………………Japan
J.Score CO., Ltd. ……………………………Japan

Main businessBanking
Trust and banking
Securities
Information technology
and think tankconsulting
Investment
management
Credit guarantee
Factoring
Credit card
Holding company
Subcontracted
operations
Real estate agency
Pension planrelated business
Application andSophisticationof Financial Technology
Venture capital
Lending

Proportion ofownership
interest (%)

Proportion of
votinginterest (%)

100.0%
100.0
100.0
100.0

100.0%
100.0
100.0
100.0

70.0

51.0

100.0
100.0
100.0
100.0
100.0

100.0
100.0
100.0
100.0
100.0

99.5
60.0

95.1
60.0

60.0

60.0

50.0
50.0

50.0
50.0

Mizuho’s value
creation process(b) Number of Consolidated Subsidiaries

Business strategies forvalue creation(a) Difference from the Companies Included in the Scope of Consolidation Based on Consolidation Rules for
Preparation of Consolidated Financial Statements (the “Scope of Accounting Consolidation”)
None as of March 31, 2023 and 2022

Governance for value
creation(1) Scope of Consolidation for Calculating Consolidated Capital Adequacy Ratio

Data section■ Scope of Consolidation

Appendix

The information disclosed herein is in accordance with "Matters Separately Prescribed by the Commissioner of the
Financial Services Agency Regarding Status of the Adequacy of Equity Capital Pursuant to Article 19-2, Paragraph 1, Item
5, Sub-item (d), etc. of the Ordinance for Enforcement of the Banking Law" (the FSA Notice No. 7 issued in 2014).

Executive messages /Features

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

154

Scope of Consolidation、Risk-based Capital2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

Name

Country oforganization

Overseas
Mizuho Americas LLC ………………………U.S.A.
Mizuho Capital Markets LLC …………………U.S.A.
Mizuho Bank (China), Ltd. ……………………China
Mizuho International plc ………………………U.K.
Mizuho Securities Asia Limited ………………China
Mizuho Securities USA LLC …………………U.S.A.
Mizuho Bank Europe N.V. ……………………Netherlands
Banco Mizuho do Brasil S.A. …………………Brazil
Mizuho Trust & Banking (Luxembourg) S.A. …Luxembourg
Mizuho Bank (USA) …………………………U.S.A.
Mizuho Securities Europe GmbH ……………Germany
PT. Bank Mizuho Indonesia …………………Indonesia

Main businessHolding company
Derivatives
Banking
Securities and banking
Securities
Securities
Banking and securities
Banking
Trust and banking
Banking and trust
Securities
Banking

Proportion ofownership
interest (%)

Proportion of
votinginterest (%)

100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
99.0

100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
99.0

(c) Corporations Providing Financial Services for Which Article 9 of the FSA Notice No. 20 is Applicable
None as of March 31, 2023 and 2022.
(d) Companies that are in the Bank Holding Company’s Corporate Group but not Included in the Scope of
Accounting Consolidation and Companies that are not in the Bank Holding Company’s Corporate Group but
Included in the Scope of Accounting Consolidation
None as of March 31, 2023 and 2022.
(e) Restrictions on Transfer of Funds or Capital within the Bank Holding Company’s Corporate Group
None as of March 31, 2023 and 2022.
(f) Names of Any Other Financial Institutions, etc., Classified as Subsidiaries or Other Members of the Bank
Holding Company that are Deficient in Regulatory Capital
None as of March 31, 2023 and 2022.

■ Risk-based Capital(1) Summary of Approach to Assessing Capital Adequacy
In order to ensure that risk-based capital is sufficiently maintained in light of the risk held by us, we regularly conduct thefollowing assessment of capital adequacy in addition to adopting a suitable and effective capital adequacy monitoring
structure.
Maintaining a sufficient BIS capital ratio
We confirm our maintenance of a high level of financial soundness by conducting regular evaluations to examine whether
our risk-based capital is adequate in qualitative as well as quantitative terms, which enables capital utilization and anincrease in risk-weighted assets in accordance with our management strategies, in addition to maintaining our capital above
the minimum requirements of common equity Tier 1 capital ratio, Tier 1 capital ratio, total capital ratio, capital buffer ratio,
leverage ratio and TLAC ratio.
Balancing risk and capitalOn the basis of the framework for allocating risk capital, after obtaining the clearest possible grasp of the group’s overallrisk exposure, we endeavor to control risk so as to keep it within the range of our business capacity by means of allocating
capital that corresponds to the amount of risk to the principal banking subsidiaries, etc., within the bounds of our capital,
and we conduct regular assessments to ensure that a sufficient level of capital is maintained for our risk profile. Whenmaking these assessments, we calculate the potential losses arising from assumed stress events and risk volumes, which
we assess whether they balance with the group’s capital. Stress events are based on risk scenarios that are formulated
based on the current economic condition and the economic outlook, etc. In addition, we examine whether an appropriate
return on risk is maintained in the assessments.

155

Scope of Consolidation、Risk-based Capital(2) Composition of Capital, etc.
(a) CC1: Composition of Capital Disclosure(Millions of yen, except percentage)a
Basel III
TemplatecReference
As of March As of March
to Template31, 2023
31, 2022CC2

1aof which: capital and stock surplus

3,386,035

3,382,092

2

of which: retained earnings

5,093,850

4,756,301

1cof which: treasury stock (-)

8,786

8,342

26

of which: national specific regulatory adjustments (earnings to
be distributed) (-)

107,882

101,542

-

-

5

94

of which: other than above
1b

Subscription rights to common shares

3

Accumulated other comprehensive income and other disclosed
reserves

662,133

947,197

5

Common share capital issued by subsidiaries and held by third
parties (amount allowed in group CET1)

441

16,937

6

Common Equity Tier 1 capital: instruments andreserves

9,025,797

8,992,737

8+9

Total intangible assets (net of related tax liability, excluding thoserelating to mortgage servicing rights)

453,587

451,2888

of which: goodwill (net of related tax liability, including thoseequivalent)

87,94462,9789of which: other intangibles other than goodwill and mortgage
servicing rights (net of related tax liability)

365,643

388,310

10

Deferred tax assets that rely on future profitability excluding thosearising from temporary differences (net of related tax liability)

10,835

12,685

11

Deferred gains or losses on derivatives under hedge accounting(399,086)(164,371)

12

Shortfall of eligible provisions to expected losses

-

-

13

Securitization gain on sale

-

7

14

Gains and losses due to changes in own credit risk on fair valued
liabilities

43,85324,341

15

Net defined benefit asset

596,185599,288

16

Investments in own shares (excluding those reported in the net
assets section)

4,896

2,215

17

Reciprocal cross-holdings in common equity

-

-

18

Investments in the capital of banking, financial and insurance
entities that are outside the scope of regulatory consolidation, net of
eligible short positions, where the bank does not own more than
10% of the issued share capital (amount above the 10% threshold)¥-¥-Common Equity Tier 1 capital: regulatory adjustments

(A)
(2)

(a)

Business strategies forvalue creation¥8,028,508

Governance for value
creation¥8,363,216

Data section

Directly issued qualifying common share capital plus related stock
surplus and retained earnings

Mizuho’s value
creation process(1)

AppendixCommon Equity Tier 1 capital: instruments and reserves
1a+2-1c-26

b

Executive messages /Features2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）156

Composition of Capital Disclosure2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(a) CC1: Composition of Capital Disclosure(Millions of yen, except percentage)a
Basel III
TemplatebcReference
As of March As of March
to Template31, 2023
31, 2022CC2

19+20+21 Amount exceeding the 10% threshold on specified items

¥-

¥-

19

of which: significant investments in the common stock offinancials

-

-

20

of which: mortgage servicing rights

-

-

21

of which: deferred tax assets arising from temporary differences(net of related tax liability)

-

-

22

Amount exceeding the 15% threshold on specified items

-

-

23

of which: significant investments in the common stock offinancials

-

-

24

of which: mortgage servicing rights

-

-

25

of which: deferred tax assets arising from temporary differences(net of related tax liability)

-

-

-

-

(B)

710,271925,457(C)

8,315,525

8,067,279

27

Regulatory adjustments applied to Common Equity Tier 1 due toinsufficient Additional Tier 1 and Tier 2 to cover deductions

28

Common Equity Tier 1 capital: regulatory
adjustments

Common Equity Tier 1 capital (CET1)
29

Common Equity Tier 1 capital (CET1) ((A)-(B))

Additional Tier 1 capital: instruments

(3)

30

31a

Directly issued qualifying Additional Tier 1 instruments plus related
stock surplus of which: classified as equity under applicableaccounting standards and the breakdown

-

-

30

31b

Subscription rights to Additional Tier 1 instruments

-

-

32

Directly issued qualifying Additional Tier 1 instruments plus related
stock surplus of which: classified as liabilities under applicableaccounting standards

1,485,000

1,643,000

Qualifying Additional Tier 1 instruments plus related stock surplus
issued by special purpose vehicles and other equivalent entities

-

-

30
30

34-35

Additional Tier 1 instruments issued by subsidiaries and held by
third parties (amount allowed in group AT1)

16,387

20,60733+35

Eligible Tier 1 capital instruments subject to phase-out
arrangements included in Additional Tier 1 capital: instruments

/

/

33

of which: directly issued capital instruments subject to phase out
from Additional Tier 1

/

/

35

of which: instruments issued by subsidiaries subject to phase
out

/

/

1,501,387

1,663,607

1,500

900

¥-

¥-

36

Additional Tier 1 capital: instruments(D)

Additional Tier 1 capital: regulatory adjustments
37

Investments in own Additional Tier 1 instruments

38

Reciprocal cross-holdings in Additional Tier 1 instruments

157

Composition of Capital Disclosure

cReference
As of March As of March
to Template31, 2023
31, 2022
CC2

39

Investments in the capital of banking, financial and insurance
entities that are outside the scope of regulatory consolidation, net of
eligible short positions, where the bank does not own more than
10% of the issued common share capital of the entity (amountabove 10% threshold)40

Significant investments in the capital of banking, financial andinsurance entities that are outside the scope of regulatory
consolidation (net of eligible short positions)42

Regulatory adjustments applied to Additional Tier 1 due toinsufficient Tier 2 to cover deductions

43

Additional Tier 1 capital: regulatory adjustments¥-¥-

12,017

16,695--(E)

13,517

17,595(F)

1,487,870

1,646,011(G)

9,803,395

9,713,290

Additional Tier 1 capital (AT1)
Additional Tier 1 capital ((D)-(E))

Tier 1 capital (T1 = CET1 + AT1)
45

Tier 1 capital (T1 = CET1 + AT1) ((C) + (F))

Tier 2 capital: instruments and provisions

(4)

46

Directly issued qualifying Tier 2 instruments plus related stock
surplus of which: classified as equity under applicable accounting
standards and the breakdown

-

-

46

Subscription rights to Tier 2 instruments

-

-

46

Directly issued qualifying Tier 2 instruments plus related stock
surplus of which: classified as liabilities under applicable accounting
standards

1,355,807

1,371,349

46

Tier 2 instruments plus related stock surplus issued by special
purpose vehicles and other equivalent entities

39,68973,06448-49

Tier 2 instruments issued by subsidiaries and held by third parties(amount allowed in group Tier 2)

3,516

8,038

47+49

Eligible Tier 2 capital instruments subject to phase-out
arrangements included in Tier 2:instruments and provisions

/

/

47

of which: directly issued capital instruments subject to phase out
from Tier 2

/

/

49

of which: instruments issued by subsidiaries subject to phase
out

/

/

50

Total of general allowance for loan losses and eligible provisions
included in Tier 2

107,325

191,064

50a

of which: general allowance for loan losses

50bof which: eligible provisions

51

Tier 2 capital: instruments and provisions

Tier 2 capital: regulatory adjustments

(H)

5,641

5,480

101,684

185,583

1,506,338

1,643,515(5)52

Investments in own Tier 2 instruments

1,993

4,606

53

Reciprocal cross-holdings in Tier 2 instruments and other TLAC
liabilities

-

-

54

Investments in the capital and other TLAC liabilities of banking,financial and insurance entities that are outside the scope of
regulatory consolidation, net of eligible short positions, where thebank does not own more than 10% of the issued common sharecapital of the entity (amount above the 10% threshold)¥-¥-Appendix

44

Mizuho’s value
creation processb

Business strategies forvalue creationaBasel III
Template

Governance for value
creation(Millions of yen, except percentage)

Data section(a) CC1: Composition of Capital Disclosure

Executive messages /Features2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）158

Composition of Capital Disclosure2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(a) CC1: Composition of Capital Disclosure(Millions of yen, except percentage)a
Basel III
TemplatebcReference
As of March As of March
to Template31, 2023
31, 2022
CC2

54a

Investments in the other TLAC liabilities of banking, financial andinsurance entities that are outside the scope of regulatory
consolidation, where the bank does not own more than 10% of theissued common share capital of the entity: amount previously
designated for the 5% threshold but that no longer meets theconditions

¥775

¥517

55

Significant investments in the capital and other TLAC liabilities ofbanking, financial and insurance entities that are outside the scopeof regulatory consolidation (net of eligible short positions)

-

-

57

Tier 2 capital: regulatory adjustments

(I)

2,769

5,123

(J)

1,503,569

1,638,391(K)

11,306,965

11,351,682

Tier 2 capital (T2)58

Tier 2 capital (T2) ((H)-(I))

Total capital (TC = T1 + T2)
59

Total capital (TC = T1 + T2) ((G) + (J))

Risk weighted assets
60

Risk weighted assets

Capital ratio and buffers (consolidated)

(6)
(L)

¥70,434,154 ¥64,730,439

(7)

61

Common Equity Tier 1 capital ratio (consolidated) ((C)/(L))

11.80%

12.46%

62

Tier 1 capital ratio (consolidated) ((G)/(L))

13.91%

15.00%

63

Total capital ratio (consolidated) ((K)/(L))

16.05%

17.53%

64

Total of bank CET1 specific buffer requirements

3.56%

3.51%

65

of which: capital conservation buffer requirement

2.50%

2.50%

66

of which: countercyclical buffer requirement

0.06%

0.01%

67

of which: bank G-SIB/D-SIB additional requirements

1.00%

1.00%

68

CET1 available after meeting the bank's minimum capitalrequirements

7.30%

7.96%

72

Non-significant investments in the capital and other TLAC liabilitiesof other financials that are below the thresholds for deduction(before risk weighting)¥434,394¥468,660

73

Significant investments in the common stock of financials that are
below the thresholds for deduction (before risk weighting)404,410322,19774

Mortgage servicing rights that are below the thresholds fordeduction (before risk weighting)

-

-

75

Deferred tax assets arising from temporary differences that are
below the thresholds for deduction (before risk weighting)¥662,332¥521,630

Regulatory adjustments

159

Composition of Capital Disclosure(8)(a) CC1: Composition of Capital Disclosure(Millions of yen, except percentage)a
Basel III
TemplatebcReference
As of March As of March
to Template31, 2023
31, 2022
CC2

Provisions (general allowance for loan losses)¥5,641¥5,48077

Cap on inclusion of provisions (general allowance for loan losses)

58,12848,85478

Provisions eligible for inclusion in Tier 2 in respect of exposuressubject to internal ratings-based approach (prior to application ofcap) (if the amount is negative, report as "nil")

101,684

185,583

79

Cap for inclusion of provisions in Tier 2 under internal ratings-based
approach

346,492

317,567

Capital instruments subject to phase-out arrangements

(10)

82

Current cap on AT1 instruments subject to phase-out arrangements

/

/

83

Amount excluded from AT1 due to cap (excess over cap after
redemptions and maturities) (if the amount is negative, report as"nil")//

84

Current cap on T2 instruments subject to phase-out arrangements

/

/

85

Amount excluded from T2 due to cap (excess over cap after
redemptions and maturities) (if the amount is negative, report as"nil")//

Appendix

Data section

Notes: 1. The above figures are calculated based on the international standard applied on a consolidated basis under the FSA Notice No. 20.
2. As an external audit of calculating the consolidated capital adequacy ratio, we underwent an examination under the procedures agreed with by Ernst & Young ShinNihon LLC,
on the basis of "Practical guidance on agreed-upon procedures for the calculation of capital adequacy ratio and leverage ratio" (Practical Guideline for specialized fields No.
4465 of the Japanese Institute of Certified Public Accountants). Note that this examination is not a part of the audit performed on our consolidated financial statements orinternal controls over financial reporting. Ernst & Young ShinNihon LLC does not give its opinion or conclusion concerning the capital adequacy ratio or our internal control
structure regarding the calculation of the capital adequacy ratio. Instead, it performs an examination to the extent both of us agreed to and reports the results to us.

Business strategies forvalue creation

76

Mizuho’s value
creation process(9)

Governance for value
creation

Provisions included in Tier 2 capital: instruments andprovisions

Executive messages /Features2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）160

Composition of Capital Disclosure2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(b) CC2:Reconciliation of regulatory capital to consolidated balance sheet(Millions of yen)
a

Items

b

Consolidated balance Consolidated balance
sheet as in published sheet as in publishedfinancial statements financial statementscdReference toTemplate CC1

Cross-reference toAppended template

As of March 31, 2023 As of March 31, 2022
(Assets)
Cash and Due from Banks
Call Loans and Bills Purchased
Receivables under Resale Agreements
Guarantee Deposits Paid under Securities
Borrowing Transactions
Other Debt Purchased
Trading Assets
Money Held in Trust
Securities
Loans and Bills Discounted
Foreign Exchange Assets
Derivatives other than for Trading Assets
Other Assets
Tangible Fixed Assets
Intangible Fixed Assets
Net Defined Benefit AssetDeferred Tax Assets
Customers' Liabilities for Acceptances andGuarantees
Reserves for Possible Losses on Loans
Reserve for Possible Losses on
Investments
Total Assets(Liabilities)
Deposits
Negotiable Certificates of Deposit
Call Money and Bills Sold
Payables under Repurchase Agreements
Guarantee Deposits Received under
Securities Lending Transactions
Commercial Paper
Trading Liabilities
Borrowed Money
Foreign Exchange Liabilities
Short-term Bonds
Bonds and Notes
Due to Trust Accounts
Derivatives other than for Trading Liabilities
Other Liabilities
Reserve for Bonus Payments
Reserve for Variable Compensation
Net Defined Benefit Liability
Reserve for Director and Corporate Auditor
Retirement Benefits
Reserve for Possible Losses on Sales of
Loans
Reserve for Contingencies
Reserve for Reimbursement of Deposits
Reserve for Reimbursement of Debentures
Reserves under Special Laws

¥67,152,100
1,386,895
11,693,419¥51,359,301
940,008
12,750,363

1,897,429

2,340,089

3,836,735
17,404,494
514,60737,363,140
88,687,155
2,408,587
2,184,875
8,689,547
1,105,851
572,719859,271
316,168

3,476,021
13,221,415
591,183
44,641,060
84,736,280
2,627,492
2,277,160
7,797,796
1,095,977
601,292
863,217
184,594

8,905,643

8,346,878(720,437)(783,886)

(1)

(107)

¥254,258,203¥237,066,142¥150,498,976
13,788,347
1,814,873
25,735,560¥138,830,872
16,868,931
1,278,050
20,068,779

757,842

1,172,248

1,782,111
12,698,007
4,155,480
671,552
477,141
11,371,189
1,534,097
2,749,138
7,777,025
126,694
2,381
68,4291,775,859
9,608,976
6,590,527
1,508,453
537,167
10,714,004
1,167,284
2,770,852
6,301,484
120,052
2,278
71,774539

557

15,0491,309

13,706
13,695
7,798¥3,352

6,622
17,62010,504¥3,132

161

Reconciliation of regulatory capital to consolidated balance sheet

6-a2-b, 6-b
6-c
6-d
6-e
2-a
3
4-a

6-f
8-a
8-b
6-g

(b) CC2:Reconciliation of regulatory capital to consolidated balance sheet(Millions of yen)
a

Items

b

Consolidated balance Consolidated balance
sheet as in published sheet as in publishedfinancial statements financial statementscdReference toTemplate CC1

Cross-reference toAppended template

Executive messages /Features2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Total Net Assets
Total Liabilities and Net Assets

4-b

58,711

59,9624-c

8,905,643¥245,049,740

8,346,878¥227,865,110

2,256,767
1,129,267
5,093,911(8,786)2,256,767
1,125,324
4,756,435(8,342)¥8,471,160¥8,130,185

564,495

719,822(358,102)
129,321
144,093
182,306
19(76,757)
132,156
2,346
169,652(23)¥662,133¥947,197

5
75,163

94
123,555¥9,208,463¥254,258,203¥9,201,031¥237,066,142

5

(a)
7

Appendix

Data section

Note: The regulatory scope of consolidation is the same as the accounting scope of consolidation.

1-a
1-b
1-c
1-d

Business strategies forvalue creation¥30,923

Governance for value
creation

Total Shareholders' Equity
Net Unrealized Gains (Losses) on Other
Securities
Deferred Gains or Losses on Hedges
Revaluation Reserve for Land
Foreign Currency Translation Adjustments
Remeasurements of Defined Benefit Plans
Own Credit Risk Adjustments, Net of Tax
Total Accumulated Other Comprehensive
IncomeStock Acquisition Rights
Non-Controlling Interests¥22,391

Mizuho’s value
creation process

As of March 31, 2023 As of March 31, 2022
Deferred Tax Liabilities
Deferred Tax Liabilities for Revaluation
Reserve for Land
Acceptances and Guarantees
Total Liabilities(Net Assets)
Common Stock
Capital Surplus
Retained Earnings
Treasury Stock162

Reconciliation of regulatory capital to consolidated balance sheet

2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

Appended template
1. Shareholders' Equity(1) Consolidated Balance Sheet(Millions of yen)

Ref.

Consolidated balance sheet items

As of March
31, 2023

As of March
31, 2022

1-a
1-b
1-c
1-d

Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity¥2,256,767
1,129,267
5,093,911(8,786)¥8,471,160¥2,256,767
1,125,324
4,756,435(8,342)¥8,130,185(2) Composition of CapitalBasel III
template

Composition of capital disclosure

Directly issued qualifying commonshare capital plus related stock surplus
and retained earnings
1a
2
1c

31a

of which: capital and stock surplusof which: retained earningsof which: treasury stock (-)
of which: other than above
Directly issued qualifying additional
Tier 1 instruments plus related stock
surplus of which: classified as equity
under applicable accounting standards
and the breakdown

163

Reconciliation of regulatory capital to consolidated balance sheet

Remarks(Millions of yen)
As of March
31, 2023

As of March
31, 2022

Remarks¥8,471,099¥8,130,051

Shareholders' equity
attributable to common shares(before adjusting national
specific regulatory adjustments(earnings to be distributed))

3,386,035
5,093,850
8,786-

3,382,092
4,756,301
8,342
-

-

-

Intangible fixed assets
Securitiesof which: share of goodwill ofcompanies accounted for using theequity method¥572,719
37,363,140¥601,292
44,641,060

38,33010,431

Income taxes related to above¥(157,462)¥(160,434)

2-a
2-b

(2) Composition of CapitalBasel III
template

8
9

20
24
74

Composition of capital disclosure

Goodwill (net of related tax liability,
including those equivalent)
Other intangibles other than goodwill
and mortgage servicing rights (net of
related tax liability)
Mortgage servicing rights (net of
related tax liability)
Amount exceeding the 10%threshold on specified items
Amount exceeding the 15%threshold on specified items
Mortgage servicing rights that are
below the thresholds for deduction(before risk weighting)Consolidated balance sheet items

3 Net defined benefit asset
Income taxes related to above

As of March
31, 2022¥87,944¥62,978

365,643

388,310

-

-

-

-

-

-

-

-

Software and other

As of March
31, 2023

As of March
31, 2022¥859,271¥863,217¥(263,085)¥(263,928)

Remarks(Millions of yen)

Composition of capital disclosure

As of March
31, 2023

As of March
31, 2022

Net defined benefit asset¥596,185¥599,288

Remarks

Appendix

15

Remarks(Millions of yen)

(2) Composition of CapitalBasel III
template

Share of goodwill of companies
accounted for using the equity
method(Millions of yen)
As of March
31, 2023

3. Net defined Benefit Asset(1) Consolidated Balance Sheet
Ref.

Remarks

Mizuho’s value
creation process

As of March
31, 2022

Consolidated balance sheet items

Business strategies forvalue creation

As of March
31, 2023

Ref.

Governance for value
creation(Millions of yen)

Data section

2. Intangible Fixed Assets(1) Consolidated Balance Sheet

Executive messages /Features2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）164

Reconciliation of regulatory capital to consolidated balance sheet

2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

4. Deferred Tax Assets(1) Consolidated Balance Sheet
As of March
31, 2023

As of March
31, 2022

Deferred tax assets
Deferred tax liabilities
Deferred tax liabilities for revaluation
reserve for land

¥316,168
22,391¥184,594
30,92358,711

59,962

Tax effects on intangible fixed assets
Tax effects on net defined benefit asset¥157,462
263,085¥160,434
263,928

Ref.

Consolidated balance sheet items

4-a
4-b
4-c

(Millions of yen)

(2) Composition of CapitalBasel III
template

10

21
25
75

Composition of capital disclosure(Millions of yen)
As of March
31, 2023

As of March
31, 2022

Deferred tax assets that rely on future
profitability excluding those arisingfrom temporary differences (net of
related tax liability)¥10,835¥12,685

Deferred tax assets that rely on future
profitability arising from temporary
differences (net of related tax liability)

662,332

521,630

-

-

-

-

662,332

521,630

Amount exceeding the 10%threshold on specified items
Amount exceeding the 15%threshold on specified items
Deferred tax assets arising from
temporary differences that are below
the thresholds for deduction (before
risk weighting)

165

Reconciliation of regulatory capital to consolidated balance sheet

Remarks

Remarks

This item does not agree withthe amount reported on the
consolidated balance sheet due
to offsetting of assets andliabilities.
This item does not agree withthe amount reported on the
consolidated balance sheet due
to offsetting of assets andliabilities.

5 Deferred gains or losses on hedges

As of March
31, 2023

As of March
31, 2022¥(358,102)¥(76,757)(2) Composition of CapitalBasel III
template

11

Composition of capital disclosure

Deferred gains or losses on derivatives
under hedge accounting

Remarks(Millions of yen)
As of March
31, 2023¥(399,086)

As of March
31, 2022

Remarks¥(164,371)

Excluding those items whose
valuation differences arisingfrom hedged items arerecognized as "Total
accumulated othercomprehensive income"

6. Items Associated with Investments in the Capital of Financial Institutions(Millions of yen)
(1) Consolidated Balance Sheet
As of March
31, 2023

As of March
31, 2022

Trading assets¥17,404,494¥13,221,415

37,363,140
88,687,155

44,641,060
84,736,280

2,184,875

2,277,160

6-e

Securities
Loans and bills discounted
Derivatives other than for trading
assetsOther assets

8,689,547

7,797,796

6-fTrading liabilities

12,698,007

9,608,976

6-g

Derivatives other than for trading
liabilities

2,749,138

2,770,852

Ref.

Consolidated balance sheet items

6-a
6-b
6-c

Including trading accountsecurities and derivatives for
trading assets
Including subordinated loans

Including money invested
Including trading accountsecurities soldAppendix

Data section

6-dRemarks

Mizuho’s value
creation process

Consolidated balance sheet items

Business strategies forvalue creation

Ref.

Governance for value
creation

5. Deferred Gains or Losses on Derivatives under Hedge Accounting(Millions of yen)
(1) Consolidated Balance Sheet

Executive messages /Features2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）166

Reconciliation of regulatory capital to consolidated balance sheet

2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(2) Composition of CapitalBasel III
template

16
37
52

17
38
53

18
39
54

54a

72

19
23
40
55
73

Composition of capital disclosure

Investments in own capital instruments
Common equity Tier 1 capital
Additional Tier 1 capital
Tier 2 capital
Reciprocal cross-holdings in the capitalof banking, financial and insurance
entities
Common equity Tier 1 capital
Additional Tier 1 capital
Tier 2 capital and other TLAC
liabilities
Investments in the capital of banking,financial and insurance entities that areoutside the scope of regulatory
consolidation, net of eligible shortpositions, where the bank does not
own more than 10% of the issued
share capital (amount above 10%threshold)Common equity Tier 1 capital
Additional Tier 1 capital
Tier 2 capital and other TLAC
liabilities
Investments in the other TLAC
liabilities of banking,financial andinsurance entities that are outside
the scope of regulatory
consolidation, where the bank does
not own more than 10% of theissued common share capital of theentity: amount previously designatedfor the 5% threshold but that nolonger meets the conditions
Non-significant investments in thecapital and other TLAC liabilities ofother financials that are below thethresholds for deduction (before risk
weighting)Significant investments in the capital ofbanking, financial and insurance
entities that are outside the scope of
regulatory consolidation, net of eligible
short positions
Amount exceeding the 10%threshold on specified items
Amount exceeding the 15%threshold on specified items
Additional Tier 1 capital
Tier 2 capital and other TLAC
liabilities
Significant investments in thecommon stock of financials that are
below the thresholds for deduction(before risk weighting)

167

Reconciliation of regulatory capital to consolidated balance sheet(Millions of yen)
As of March
31, 2023

As of March
31, 2022¥8,390
4,896
1,500
1,993

¥7,722
2,215
900
4,606

-

-

-

-

-

-

435,170

469,178

-

-

-

-

775

517

434,394

468,660

416,428

338,893

-

-

-

-

12,017

16,695--404,410322,197

RemarksAs of March
31, 2022¥75,163¥123,555(2) Composition of CapitalBasel III
template

530-31ab-32

34-35
46
48-49

Composition of capital disclosure

Common share capital issued bysubsidiaries and held by third parties(amount allowed in group CET1)
Qualifying additional Tier 1 instruments
plus related stock surplus issued by
special purpose vehicles and otherequivalent entities
Additional Tier 1 instruments issued bysubsidiaries and held by third parties(amount allowed in group AT1)
Tier 2 instruments plus related stock
surplus issued by special purpose
vehicles and other equivalent entities
Tier 2 instruments issued bysubsidiaries and held by third parties(amount allowed in group Tier 2)(Millions of yen)
As of March
31, 2023

As of March
31, 2022¥441¥16,937

After reflecting amounts eligible
for inclusion (non-controllinginterest after adjustments)--

After reflecting amounts eligible
for inclusion (non-controllinginterest after adjustments)

16,387

20,607

39,68973,064

3,516

8,038

8. Other Capital Instruments(1) Consolidated Balance Sheet

Remarks

After reflecting amounts eligible
for inclusion (non-controllinginterest after adjustments)
After reflecting amounts eligible
for inclusion (non-controllinginterest after adjustments)
After reflecting amounts eligible
for inclusion (non-controllinginterest after adjustments)(Millions of yen)

Ref.

Consolidated balance sheet items

As of March
31, 2023

As of March
31, 2022

8-aBorrowed money¥4,155,480¥6,590,5278-b

Bonds and notes

11,371,189

10,714,004

Total¥15,526,670¥17,304,532(2) Composition of Capital

Remarks(Millions of yen)

Composition of capital disclosure

As of March
31, 2023

As of March
31, 2022

32

Directly issued qualifying additional
Tier 1 instruments plus related stock
surplus of which: classified as liabilities
under applicable accounting standards¥1,485,000¥1,643,000

46

Directly issued qualifying Tier 2
instruments plus related stock surplusof which: classified as liabilities underapplicable accounting standards

1,355,807

1,371,349

Remarks

Appendix

Basel III
template

Remarks

Mizuho’s value
creation process

7 Non-Controlling interests

As of March
31, 2023

Business strategies forvalue creation

Consolidated balance sheet items

Data section

Ref.

(Millions of yen)

Governance for value
creation

7. Non-Controlling Interests(1) Consolidated Balance Sheet

Executive messages /Features2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）168

Reconciliation of regulatory capital to consolidated balance sheet

2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy■ Summary of Risk Management and Risk-weighted Assets (RWA)(1) Summary of Our Group’s Risk Profile, Risk Management Policies/ Procedures and Structure
See pages 95 to 97 for a summary of our group’s risk profile and risk management policies, etc.
(2) Summary of RWA(A) OV1: Overview of Risk-weighted Assets (RWA)(Millions of yen)

a

b

c

As of March
31, 2023

As of March
31, 2022

As of March
31, 2023

As of March
31, 2022¥42,805,132¥40,885,256¥3,610,442¥3,449,683

2,312,405
38,756,705
1,736,021

1,937,947
37,263,038
1,684,270

184,992
3,286,568
138,881

155,035
3,159,905
129,964

4,779,126

4,606,704

388,728

374,631of which: SA-CCR
of which: current exposure methodof which: expected positive exposure (EPE) methodof which: credit valuation adjustment (CVA) riskof which: central counterparty-related
Others335,109935,129
1,820,083
276,222
1,412,582

243,346
1,008,311
2,108,205
183,747
1,063,093

27,68478,542
145,606
22,097
114,796

20,16984,793
168,656
14,69986,311

7

Equity positions in banking book under market-based approach

3,954,016

2,613,592

335,300

221,6328
94,913,343
832,944
79,7404,090,892
811,245
227,679

415,679
70,6336,490

345,975
68,79318,854RWA

Basel III
Template
No.

1
2
3

4
5
6

Counterparty credit risk (CCR)

10
11

Settlement risk

12

Securitization exposures in banking book

14
15
16
17
18
19
20
21
22
23

Overview of RWA

of which: standardized approach (SA)of which: internal rating-based (IRB) approachof which: significant investmentsof which: estimated residual value of lease transactions
othersEquity investments in funds - Look-through approach
Equity investments in funds - Mandate-based approach
Equity investments in funds - Simple approach (subject to 250% RW)
Equity investments in funds - Simple approach (subject to 400% RW)
Equity investments in funds - Fall-back approach

13

169

Credit risk (excluding counterparty credit risk)of which: Securitisation IRB approach (SEC-IRBA) or internal assessment approach(IAA)of which: Securitisation external ratings-based approach (SEC-ERBA)
of which: Securitisation standardised approach (SEC-SA)of which: 1250% risk weight is applied
Market riskof which: standardized approach (SA)of which: internal model approaches (IMA)
Operational riskof which: basic indicator approachof which: standardized approachof which: advanced measurement approach
Exposures of specified items not subject to regulatory adjustmentsdcapital requirements

4,785

3,179

396

263

1,421,908

972,440

113,752

77,795

1,266,842
153,953204
907

823,411
148,600
255
173

101,347
12,31616
72

65,872
11,88820
132,664,443

2,357,907

213,155

188,632

1,028,809
1,635,634

977,368
1,380,539

82,304130,850

78,189110,4433,274,392

3,244,374

261,951

259,549

939,980
2,334,411

848,593
2,395,780

75,198
186,752

67,887
191,6622,666,857

2,109,475

218,201

172,623-

Amounts included in RWA subject to phase-out arrangements

-

-

-

24

Floor adjustment

-

-

-

-

25

Total (after applying the scaling factor)¥70,434,154¥64,730,439¥5,634,732¥5,178,435

Risk
Weight(%)

EAD

RWA

Risk
Weight(%)¥246,489.4¥50,230.3

20.37¥230,632.9¥46,599.3

20.20

230,154.3

35,914.1

15.60

214,019.1

34,043.4

15.90

109,165.4

32,261.4

29.55

103,063.4

31,013.1

30.09

Ratings A1-B2

80,686.8

16,325.6

20.23

77,065.9

16,019.8

20.78

Ratings C1-D3

25,702.2

13,699.3

53.30

23,378.5

12,721.2

54.41

Ratings E1-E2

1,361.2

1,696.6

124.64

1,431.3

1,748.3

122.15Internal ratings-based approach
Corporate, etc.
Corporate (except specialized
lending)

Ratings E2R-H1

1,415.0

539.7

38.14

1,187.5

523.6

44.09

110,284.2

864.1

0.78

102,621.6

887.6

0.86

Ratings A1-B2

110,076.7

739.2

0.67

102,451.0

765.0

0.74

Ratings C1-D3

200.3

112.9

56.37

158.6

108.1

68.18

Ratings E1-E2

7.1

11.9

167.2511.9

14.3

120.16

Ratings E2R-H1

0.0

0.0

31.00

0.0

0.0

32.59

10,235.1

2,210.4

21.59

7,991.9

1,761.2

22.03

Ratings A1-B2

9,733.3

1,911.5

19.63

7,494.8

1,473.6

19.66

Ratings C1-D3

487.7

270.9

55.55

482.1

265.2

55.00

Ratings E1-E2

5.8

23.5

400.005.9

17.2

289.54

Ratings E2R-H1

8.1

4.3

53.92

8.9

5.1

57.58

Specialized lending

469.4

578.1

123.16

342.1

381.3

111.479,293.3

2,657.5

28.59

9,730.4

2,866.9

29.46

7,565.8

1,820.5

24.06

7,845.7

1,969.5

25.10

SovereignBank

RetailResidential mortgage
Qualifying revolving loan

530.1

446.9

84.32

544.3

450.7

82.80

Others1,197.4

389.9

32.56

1,340.4

446.6

33.31

Equities

4,590.3

8,948.5

194.944,145.6

7,271.5

175.40PD/LGD approach

3,158.9

4,362.1

138.083,215.9

4,259.7

132.45Market-based approach

1,431.3

4,586.4

320.42929.6

3,011.7

323.972,451.4

2,710.0

110.542,737.7

2,417.4

88.30

Standardized approach

6,867.3

4,586.7

66.79

5,599.5

3,844.1

68.65

Equity investments in funds

2,424.4

6,160.0

254.082,351.7

5,420.2

230.47

Securitization exposures

6,659.6

1,421.9

21.35

5,180.7

972.4

18.77

CVA risk／

1,820.0／／

2,108.2／

Central counterparty-related

／

276.2

／

／

183.7

／

¥262,440.8¥64,495.3

23.77¥243,765.1¥59,128.1

23.31

OthersTotal

Mizuho’s value
creation process

RWA

Business strategies forvalue creation

EAD

Governance for value
creation

As of March 31, 2022

Data section(Billions of yen)
As of March 31, 2023

Appendix(B) Credit Risk Weighted Assets by Asset Class and Ratings Segment

Executive messages /Features2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）Note1: "Specialized lending" is specialized lending exposure under supervisory slotting criteria.
Note2: "Equity investments in funds" is total of look-though approach, mandate-based approach, simple approach and fall-back approach.
Note3: "Equity investments in funds" and "Securitization exposures" as of March 31, 2019 are disclosed out of Internal ratings-based approach due to revision of FSA Notice No.20.

170

RWA by asset class and ratings segment

2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy■ Linkages between Financial Statements and Regulatory Exposures(A) LI1: Differences between Accounting and Regulatory Scopes of Consolidation and Mapping of Financial
Statement Categories with Regulatory Risk Categories(Millions of yen)a

AssetsCash and Due from Banks
Call Loans and Bills Purchased
Receivables under Resale Agreements
Guarantee Deposits Paid under
Securities Borrowing Transactions
Other Debt Purchased
Trading Assets
Money Held in Trust
Securities
Loans and Bills Discounted
Foreign Exchange Assets
Derivatives Other than for Trading
AssetsOther Assets
Tangible Fixed Assets
Intangible Fixed Assets
Net Defined Benefit AssetDeferred Tax Assets
Customers' Liabilities for
Acceptances and Guarantees
Reserves for Possible Losses on Loans
Reserve for Possible Losses on
Investments
Total assetsb

As of March 31, 2023def
Carrying values of items:cCarrying
Carrying
values asreported in values underpublished scope offinancial regulatory
statements consolidation

Subject tocreditrisk
framework¥67,152,100
1,386,895
11,693,419¥67,152,100
1,386,895-¥11,693,419

1,897,429-

3,836,735
17,404,494
514,60737,363,140
88,687,155
2,408,587gSubject tothe market
risk
framework

Not subject tocapitalrequirements
or subject todeductionfrom capital

¥-

¥-

¥-

1,897,429---

2,457,064
514,607
36,191,863
86,041,368
2,408,587

9,794,144
813-

1,348,412
1,120,928
2,644,973-

17,404,494-

31,25850,348-2,184,875-

2,184,875---

8,689,547
1,105,851
572,719859,271
316,168

2,333,632
1,105,851
157,462
263,085
305,332

6,212,341-

13,408--130,165
415,257
596,185
10,835

8,905,643

8,874,995

507

30,140--(720,437)(720,465)

-

-

-

27

(1)

-

-

-

-

-

¥254,258,203¥208,472,382¥31,783,531¥5,157,864¥17,404,494¥1,234,077

171

Linkages between Financial Statements and Regulatory Exposures

Subject tocounterparty Subject to thecredit risk securitization
framework
framework

Carrying
Carrying
values asreported in values underpublished scope offinancial regulatory
statements consolidation
Liabilities
Deposits
Negotiable Certificates of Deposit
Call Money and Bills Sold
Payables under Repurchase
Agreements
Guarantee Deposits Received under
Securities Lending Transactions
Commercial Paper
Trading Liabilities
Borrowed Money
Foreign Exchange Liabilities
Short-term Bonds
Bonds and Notes
Due to Trust Accounts
Derivatives other than for trading
liabilities
Other Liabilities
Reserve for Bonus Payments
Reserve for variable compensation
Net Defined Benefit Liability
Reserve for Director and Corporate
Auditor Retirement Benefits
Reserve for possible losses onsales of loans
Reserve for contingencies
Reserve for reimbursement of deposits
Reserve for reimbursement ofdebentures
Reserves under Special Laws
Deferred Tax Liabilities
Deferred Tax Liabilities for
Revaluation Reserve for Land
Acceptances and Guarantees
Total liabilitiescSubject tocreditrisk
framework

Subject tocounterparty Subject to thecredit risk securitization
framework
frameworkg
Not subject tocapitalrequirements
or subject todeductionfrom capital

Subject tothe market
risk
framework¥150,498,976
13,788,347
1,814,873

¥-

¥-

¥-

¥- ¥150,498,976
13,788,347
1,814,873

25,735,560-

25,735,560

-

-

-

757,842-

757,842---

1,782,111
12,698,007
4,155,480
671,552
477,141
11,371,189
1,534,097-

9,142,179--

12,698,007-

1,782,111
4,155,480
671,552
477,141
11,371,189
1,534,097

2,749,138-

2,749,138---

7,777,025
126,694
2,381
68,429-101,235---

7,675,790
126,694
2,381
68,429

539

-

-

-

-

539

15,049----15,04913,706
13,695

8,952
-

-

-

-

4,753
13,695

7,798

-

-

-

-

7,798

3,352
22,391

-

-

-

-

3,352
22,391

58,711----

58,711

8,905,643¥245,049,740¥8,952¥38,485,956¥-

Mizuho’s value
creation processb

Business strategies forvalue creationaGovernance for value
creation(Millions of yen)

As of March 31, 2023def
Carrying values of items:

Data section

LI1-(Continued)

Executive messages /Features2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）8,905,643¥12,698,007 ¥202,999,002

Appendix

Notes: 1. Since the scope of accounting consolidation and that of regulatory consolidation are the same, the column (a) and (b) have been combined.
2. Market risk includes foreign exchange risk and commodities risk in the banking book, but only those items in the trading book are recorded.

172

Linkages between Financial Statements and Regulatory Exposures2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(Millions of yen)a

AssetsCash and Due from Banks
Call Loans and Bills Purchased
Receivables under Resale Agreements
Guarantee Deposits Paid under
Securities Borrowing Transactions
Other Debt Purchased
Trading Assets
Money Held in Trust
Securities
Loans and Bills Discounted
Foreign Exchange Assets
Derivatives Other than for Trading
AssetsOther Assets
Tangible Fixed Assets
Intangible Fixed Assets
Net Defined Benefit AssetDeferred Tax Assets
Customers' Liabilities for
Acceptances and Guarantees
Reserves for Possible Losses on Loans
Reserve for Possible Losses on
Investments
Total assetsb

As of March 31, 2022def
Carrying values of items:cCarrying
Carrying
values asreported in values underpublished scope offinancial regulatory
statements consolidation

Subject tocreditrisk
framework¥51,359,301
940,008
12,750,363¥51,359,301
940,008-¥12,750,363

2,340,089-

3,476,021
13,221,415
591,183
44,641,060
84,736,280
2,627,492gSubject tothe market
risk
framework

Not subject tocapitalrequirements
or subject todeductionfrom capital

¥-

¥-

¥-

2,340,089---

2,314,310
591,183
43,653,277
82,880,713
2,627,492

6,733,692
2,434-

1,130,923
960,655
1,853,131-

13,221,415-

30,78827,126-

2,277,160-

2,277,160---

7,797,796
1,095,977
601,292
863,217
184,594

1,933,788
1,095,977
160,434
263,928
171,909

5,365,849
-

2,498
-

-

495,658
440,857
599,288
12,685

8,346,878

8,339,298

1,110

6,469

-

-

(783,886)(783,890)

-

-

-

4

(107)

-

-

-

-

-

¥237,066,142¥195,547,735¥29,470,702¥3,953,679¥13,221,415¥1,606,409

173

Linkages between Financial Statements and Regulatory Exposures

Subject tocounterparty Subject to thecredit risk securitization
framework
framework

Carrying
Carrying
values asreported in values underpublished scope offinancial regulatory
statements consolidation
Liabilities
Deposits
Negotiable Certificates of Deposit
Call Money and Bills Sold
Payables under Repurchase
Agreements
Guarantee Deposits Received under
Securities Lending Transactions
Commercial Paper
Trading Liabilities
Borrowed Money
Foreign Exchange Liabilities
Short-term Bonds
Bonds and Notes
Due to Trust Accounts
Derivatives other than for trading
liabilities
Other Liabilities
Reserve for Bonus Payments
Reserve for variable compensation
Net Defined Benefit Liability
Reserve for Director and Corporate
Auditor Retirement Benefits
Reserve for possible losses onsales of loans
Reserve for contingencies
Reserve for reimbursement of deposits
Reserve for reimbursement ofdebentures
Reserves under Special Laws
Deferred Tax Liabilities
Deferred Tax Liabilities for
Revaluation Reserve for Land
Acceptances and Guarantees
Total liabilitiescSubject tocreditrisk
framework

Subject tocounterparty Subject to thecredit risk securitization
framework
frameworkg
Not subject tocapitalrequirements
or subject todeductionfrom capital

Subject tothe market
risk
framework¥138,830,872
16,868,931
1,278,050

¥-

¥-

¥-

¥- ¥138,830,872
16,868,931
1,278,050

20,068,779-

20,068,779

-

-

-

1,172,248-

1,172,248---

1,775,859
9,608,976
6,590,527
1,508,453
537,167
10,714,004
1,167,284-

6,138,946--

9,608,976-

1,775,859
6,590,527
1,508,453
537,167
10,714,004
1,167,284

2,770,852-

2,770,852---

6,301,484
120,052
2,278
71,774-

166,561---

6,134,923
120,052
2,278
71,774

557

-

-

-

-

557

1,309

-

-

-

-

1,309

6,622
17,620

2,960
-

-

-

-

3,661
17,62010,504----

10,504

3,132
30,923

-

-

-

-

3,132
30,92359,962----

59,962

8,346,878¥227,865,110¥2,960¥30,317,387¥-

Mizuho’s value
creation processb

Business strategies forvalue creationaGovernance for value
creation(Millions of yen)

As of March 31, 2022def
Carrying values of items:

Data section

LI1-(Continued)

Executive messages /Features2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）8,346,878¥9,608,976 ¥194,074,731

Appendix

Notes: 1. Since the scope of accounting consolidation and that of regulatory consolidation are the same, the column (a) and (b) have been combined.
2. Market risk includes foreign exchange risk and commodities risk in the banking book, but only those items in the trading book are recorded.

174

Linkages between Financial Statements and Regulatory Exposures2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(B) LI2: Main Sources of Differences between Regulatory Exposure Amounts and Carrying Values in Financial
Statements(Millions of yen)

a

1
2
3
4
5
6
7
8
9

Asset carrying value amount under scope of
regulatory consolidation (as per template LI1)
Liabilities carrying value amount under regulatory
scope of consolidation (as per template LI1)
Total net amount under regulatory scope of consolidation
Off-balance sheet amounts
Differences due to consideration of provision forloan losses and write-offs
Differences due to derivative transactions, etc.
Differences due to repurchase transactions
Other differences
Exposure amounts considered for regulatory purposes

Total¥253,024,126

As of March 31, 2023bcde
Items subject to:Counterparty
Credit risk
credit risk Securitization Market risk
framework
framework
framework
framework¥208,472,382 ¥31,783,531¥5,157,864 ¥17,404,494

42,050,737

8,952

38,485,956-

12,698,007

210,973,388
27,196,623
807,273

208,463,429
25,692,847
807,273(6,702,424)-

5,157,864
1,503,775-

4,706,486-(218,113)
31,794,713(226,981)¥270,326,903(878,945)¥234,084,604(218,113)
31,794,713¥24,874,174¥6,661,639¥4,706,486

Notes: 1. Column (a) is not necessarily equal to the sum of columns (b) to (e) due to assets being riskweighted more than once.
2. Differences between regulatory exposure amounts and carrying values in consolidated financial statements and the main sources of the differences are as follows.
･ Off-balance sheet amounts correspond to the differences produced mainly by adding exposures to undrawn commitments and by multiplying customer liabilities for
acceptances and guarantees by the credit conversion factor (CCF) assigned to off-balance sheet items under the regulatory capital requirements.
･ Differences due to consideration of provision for loan losses, and write-offs are produced mainly by adding general provisions for loan losses, specific provisions for loan
losses and partial direct bad debt write-offs to those assets subject to the advanced internal ratings-based approach.
･ Differences due to derivative transactions, etc. are produced mainly by incorporating future market value fluctuations and the effect of netting into regulatory exposureamounts. Derivative transactions, etc. include long-settlement transactions.
･ Differences due to repurchase transactions are mainly produced by adding the exposure amounts related to assets pledged as collateral and considering the effect of
netting and collateral.
･ Other differences are produced mainly by considering the offsetting of deferred tax assets against deferred tax liabilities and the regulatory recognized effectiveness ofhedging and making regulatory prudential adjustments.

(Millions of yen)

a

Total
1
2
3
4
5
6
7
8
9

Asset carrying value amount under scope of
regulatory consolidation (as per template LI1)
Liabilities carrying value amount under regulatory
scope of consolidation (as per template LI1)
Total net amount under regulatory scope of consolidation
Off-balance sheet amounts
Differences due to consideration of provision forloan losses and write-offs
Differences due to derivative transactions, etc.
Differences due to repurchase transactions
Other differences
Exposure amounts considered for regulatory purposes

As of March 31, 2022bcde
Items subject to:Counterparty
Credit risk
credit risk Securitization Market risk
framework
framework
framework
framework¥235,459,732¥195,547,735¥29,470,702¥3,953,679¥13,221,415

33,790,379

2,960

30,317,387-

9,608,976

201,669,353
23,579,456

195,544,774
22,352,343-846,685-

3,953,679
1,227,112

3,612,439-

883,358

883,358---

257,742
23,519,865(67,679)¥249,842,095(662,536)¥218,117,941

257,742
23,519,865¥22,930,923¥5,180,792¥3,612,439

Notes: 1. Column (a) is not necessarily equal to the sum of columns (b) to (e) due to assets being riskweighted more than once.
2. Differences between regulatory exposure amounts and carrying values in consolidated financial statements and the main sources of the differences are as follows.
･ Off-balance sheet amounts correspond to the differences produced mainly by adding exposures to undrawn commitments and by multiplying customer liabilities for
acceptances and guarantees by the credit conversion factor (CCF) assigned to off-balance sheet items under the regulatory capital requirements.
･ Differences due to consideration of provision for loan losses, and write-offs are produced mainly by adding general provisions for loan losses, specific provisions for loan
losses and partial direct bad debt write-offs to those assets subject to the advanced internal ratings-based approach.
･ Differences due to derivative transactions, etc. are produced mainly by incorporating future market value fluctuations and the effect of netting into regulatory exposureamounts. Derivative transactions, etc. include long-settlement transactions.
･ Differences due to repurchase transactions are mainly produced by adding the exposure amounts related to assets pledged as collateral and considering the effect of
netting and collateral.
･ Other differences are produced mainly by considering the offsetting of deferred tax assets against deferred tax liabilities and the regulatory recognized effectiveness ofhedging and making regulatory prudential adjustments.

175

Linkages between Financial Statements and Regulatory ExposuresSee pages 116 to 118 for a summary of our credit risk profile and credit risk management policies, etc.
(2) Summary of Provision for Loan Losses and Write-offs
See page 117 for a summary of provision for loan losses and write-offs.
(3) Quantitative Disclosure on Credit Risk
Counterparty credit risk exposures, securitization exposures, and regarded-method exposures are excluded from theamount of credit risk exposures below.
(A) CR1: Credit Quality of Assets(Millions of yen)

5
6
7
8

Net values(a+b-c)¥1,336,118
9,135
43,745
1,388,999¥84,707,765
30,882,450
72,583,019
188,173,235¥670,527
7,138
677,666¥85,373,356
30,891,586
72,619,626
188,884,568

31,417
128,546
159,964

8,874,486
38,140,209
47,014,696

35,47635,4768,870,428
38,268,756
47,139,185¥1,548,964 ¥235,187,932¥713,142 ¥236,023,754

Notes: 1. Other on-balance sheet debt exposures include deposits, call loans, bills purchased, other debt purchased, money held in trust and foreign exchange assets, etc.
2. Defaulted exposures include restructured loans, loans past due for three months or more, loans to bankrupt borrowers and so on.
3. Reserve corresponds to the amount of reserves for possible loan losses(Millions of yen)

As of March 31, 2022abcGross carrying values of
NonDefaulted
defaulted
Reserve
exposures
exposures
1
2
3
4
5
6
7
8

On-balance sheet exposures
Loans
Debt securities
Other on-balance sheet debt exposures
Total on-balance sheet exposures (1+2+3)
Off-balance sheet exposures
Guarantees
Commitments
Total off-balance sheet exposures (5+6)
Total
Total assets (4+7)

dNet values(a+b-c)¥1,175,493
10,49014,7641,200,747¥81,702,507
38,316,393
56,037,911
176,056,812¥701,722
8,874
710,596¥82,176,278
38,326,883
56,043,801
176,546,964

49,987
58,919108,9078,294,814
34,393,304
42,688,119

52,19052,1908,292,611
34,452,224
42,744,836¥1,309,654 ¥218,744,932

Data section

1
2
3
4

On-balance sheet exposures
Loans
Debt securities
Other on-balance sheet debt exposures
Total on-balance sheet exposures (1+2+3)
Off-balance sheet exposures
Guarantees
Commitments
Total off-balance sheet exposures (5+6)
Total
Total assets (4+7)

dAppendix

As of March 31, 2023abcGross carrying values of
NonDefaulted
defaulted
Reserve
exposures
exposures

Business strategies forvalue creation(1) Summary of Risk Profile, Risk Management Policies/ Procedures and Structure

Governance for value
creation■ Credit Risk

Mizuho’s value
creation process

Executive messages /Features2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）¥762,786 ¥219,291,800

Notes: 1. Other on-balance sheet debt exposures include deposits, call loans, bills purchased, other debt purchased, money held in trust and foreign exchange assets, etc.
2. Defaulted exposures include restructured loans, loans past due for three months or more, loans to bankrupt borrowers and so on.
3. Reserve corresponds to the amount of reserves for possible loan losses

176

Credit Risk、Quantitative Disclosure on Credit Risk

2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(B) Breakdown of Credit Risk Exposures(a) Breakdown by Geographical Area

(Billions of yen)

As of March 31, 2023
Loans,
commitments
and other
non-derivative
off-balancesheet
exposures Securities
Domestic¥71,121.6 ¥23,555.3
Overseas
61,149.7
10,811.2
Asia
12,669.7
2,255.0
Central and South America
4,437.9
32.4
North America
25,317.3
7,249.0
Eastern Europe
392.9Western Europe
12,072.7
331.4
Other areas
6,259.0
943.2
Total¥132,271.4 ¥34,366.6
Standardized approach portion／／

Others¥56,291.5
18,850.0
2,237.3
1,724.5
12,394.8
11.1
2,251.6
230.4¥75,141.5／

As of March 31, 2022
Loans,
commitments
and other
non-derivative
off-balancesheet
Total
exposures Securities¥150,968.6 ¥70,458.1 ¥31,886.3
90,811.0
53,929.8
10,040.4
17,162.1
12,798.4
2,248.6
6,194.9
4,392.7
18.0
44,961.2
20,035.8
6,458.9404.1
397.9
14,655.7
10,913.0476.0
7,432.8
5,391.7
838.8¥241,779.6 ¥124,388.0 ¥41,926.8
4,831.4／／

OthersTotal¥43,598.8 ¥145,943.3
16,219.6
80,190.0
2,326.0
17,373.1
1,464.1
5,874.9
9,645.7
36,140.5
15.2
413.2
2,504.8
13,893.9263.5
6,494.1¥59,818.4 ¥226,133.3
3,936.0／

Notes: 1. Standardized approach portion represents the amount calculated using the standardized approach for business units and asset classes that are immaterial for the purposeof calculating credit RWA
2. Exposure to non-Japanese residents is included in Overseas.
3. Others include cash, deposits, call loans, other debt purchased, money held in trust, foreign exchange assets and other assets, etc.
4. Reclassification of Geographical Area type has been made on the above table as of March 31,2019 for consistency with current figures.

(b) Breakdown by Industry(Billions of yen)

As of March 31, 2023
Loans,
commitments
and other
non-derivative
off-balancesheet
exposures Securities
Manufacturing¥29,962.6¥1,503.3
Construction
2,483.4
161.7
Real estate
15,112.4
1,115.1
Service industries
6,591.2
272.4
Wholesale and retail
12,205.6
703.2
Finance and insurance
21,997.2
7,543.5
Individuals
10,054.2
Other industries
32,785.1
5,829.8
Japanese Government; Bank of Japan
1,079.3
17,237.3
Total¥132,271.4 ¥34,366.6
Standardized approach portion／／

Others¥646.3
6.6
74.4
753.0
723.0
18,674.6
6.2
3,091.7
51,165.3¥75,141.5／

As of March 31, 2022
Loans,
commitments
and other
non-derivative
off-balancesheet
Total
exposures Securities¥32,112.3 ¥28,178.7¥1,837.3
2,651.8
2,307.0
178.8
16,302.0
13,712.9
1,098.7
7,616.7
6,331.5
306.0
13,631.8
12,779.4
699.948,215.4
19,585.0
6,011.9
10,060.5
10,426.4
41,706.7
30,230.1
6,166.5
69,482.0
836.5
25,627.5¥241,779.6 ¥124,388.0 ¥41,926.8
4,831.4／／

OthersTotal¥675.6 ¥30,691.6
4.6
2,490.5
82.3
14,894.0
753.9
7,391.5
957.1
14,436.6
15,786.1
41,383.1
6.6
10,433.0
3,222.0
39,618.7
38,329.9
64,794.0¥59,818.4 ¥226,133.3
3,936.0／

Notes: 1. Standardized approach portion represents the amount calculated using the standardized approach for business units and asset classes that are immaterial for the purposeof calculating credit RWA.
2. Others include cash, deposits, call loans, other debt purchased, money held in trust, foreign exchange assets and other assets, etc.

177

Credit Risk、Quantitative Disclosure on Credit Risk

Mizuho’s value
creation process
Appendix

Data section

Governance for value
creation

Notes: 1. Standardize1. d approach portion represents the amount calculated using the standardized approach for business units and asset classes that are immaterial for the
purpose of calculating credit RWA
2. Others include cash, deposits, call loans, other debt purchased, money held in trust, foreign exchange assets and other assets, etc.

Business strategies forvalue creation(Billions of yen)(c) Breakdown by Residual Contractual Maturity
As of March 31, 2023
As of March 31, 2022
Loans,
Loans,
commitments
commitments
and otherand other
non-derivative
non-derivative
off-balanceoff-balancesheet
sheet
Others
Total
OthersTotal
exposures Securities
exposures Securities
Less than one year
¥31,846.8 ¥17,512.0¥8,945.5 ¥58,304.4 ¥30,292.7 ¥21,749.0¥7,867.2 ¥59,909.0
From one year to less than three years
40,857.8
2,463.2
87.0
43,408.0
40,706.8
6,135.6
89.5
46,932.0
From three years to less than five years
27,932.3
1,223.9
12.4
29,168.7
23,721.7
1,845.9
13.1
25,580.8
Five years or more
30,586.9
9,342.5
90.9
40,020.4
29,066.0
8,315.6
72.0
37,453.7
Other than above
1,047.6
3,824.8
66,005.5
70,877.9
600.5
3,880.5
51,776.5
56,257.7
Total¥132,271.4 ¥34,366.6 ¥75,141.5 ¥241,779.6 ¥124,388.0 ¥41,926.8 ¥59,818.4 ¥226,133.3
Standardized approach portion
4,831.4
3,936.0
／
／
／
／
／
／

Executive messages /Features2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）178

Credit Risk、Quantitative Disclosure on Credit Risk

2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(C) Exposure to Obligors Claims of Whom Meet the Stipulations in the Article 4 Paragraph 2, 3 or 4 of theOrdinance for Enforcement of the Act on Emergency Measures for the Revitalization of the Financial Functions
Enacted in Japan(a) Breakdown by Geographical Area

Domestic
Overseas
Asia
Central and South America
North America
Eastern Europe
Western Europe
Other areas
Total
Standardized approach portion

As of March 31, 2023
Exposure
Reserve
Write-offs¥1,340.8¥384.9
¥10.2
299.9
113.7
6.4
109.3
37.2
2.7
60.0
10.3
0.0
30.8
6.8
3.6
40.7
32.8
49.9
21.3
9.0
5.1
¥1,640.7¥498.7
¥16.6
8.4
4.4
(0.4)

(Billions of yen)

As of March 31, 2022
Exposure
Reserve
Write-offs¥1,207.1¥475.3
¥7.6
218.0
54.1
3.7
87.2
25.2
1.8
26.0
3.7
0.0
29.4
5.0
1.8
7.8
0.5
40.8
14.4
26.6
5.2
¥1,425.1¥529.5
¥11.4
8.7
6.3
0.5

Note: Standardized approach portion represents the amount calculated using the standardized approach for business units and asset classes that are immaterial for the purpose of
calculating credit RWA(b) Breakdown by Industry

Manufacturing
Construction
Real estate
Service industries
Wholesale and retail
Finance and insurance
Individuals
Other industries
Total
Standardized approach portion(Billions of yen)

As of March 31, 2023
Exposure
Reserve
Write-offs¥846.6¥302.4
¥0.8
25.9
5.8
2.7
42.9
2.4
0.0
267.5
54.2
5.1
169.2
33.3
2.3
56.7
11.4
1.0
52.0
5.5
1.5
179.7
83.4
2.8
¥1,640.7¥498.7
¥16.6
8.4
4.4
(0.4)

As of March 31, 2022
Exposure
Reserve
Write-offs¥615.1¥375.4
¥0.8
24.2
6.4
0.0
52.5
3.0
0.0
252.1
45.2
0.5
189.6
31.8
6.0
34.5
10.8
2.2
64.8
7.3
1.3
192.0
49.4
0.2
¥1,425.1¥529.5
¥11.4
8.7
6.3
0.5

Note: Standardized approach portion represents the amount calculated using the standardized approach for business units and asset classes that are immaterial for the purpose of
calculating credit RWA.
.

179

Credit Risk、Quantitative Disclosure on Credit Risk

(D) Exposure by Past Due Period(Billions of yen)

As of March 31, 2023
From one month to less From two months to lessLess than one monthThree months or morethan two months
than three months¥155.3
¥42.1
¥10.1
¥34.4

Total
¥242.2

Note: Excluding claims under bankruptcy or substantial bankruptcy stipulated in the Article 4 paragraph 2 of the Ordinance for Enforcement of the Act on Emergency Measures for
the Revitalization of the Financial Functions as well as high risk claims stipulated in the Article 4 paragraph 3.

Executive messages /Features2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）(E) Exposure to Obligors Claims of Whom have been Restructured for the Purpose of Corporate Restructuring or
Supporting the Customer(Billions of yen)

As of March 31, 2023

Exposure¥856.3

Amount of exposure for which loss
reserve has increased as a result of
restructuring of lending terms¥826.2Others¥30.1

Note: Excluding claims under bankruptcy or substantial bankruptcy stipulated in the Article 4 paragraph 2 of the Ordinance for Enforcement of the Act on Emergency Measures for
the Revitalization of the Financial Functions, high risk claims stipulated in the Article 4 paragraph 3 or claims overdue for more than three months stipulated in the Article 4paragraph 4.

(Billions of yen)

As of March 31, 2022

Exposure¥561.4

Amount of exposure for which loss
reserve has increased as a result of
restructuring of lending terms¥528.6

Others¥32.7

Appendix

Data section

Note: Excluding claims under bankruptcy or substantial bankruptcy stipulated in the Article 4 paragraph 2 of the Ordinance for Enforcement of the Act on Emergency Measures for
the Revitalization of the Financial Functions, high risk claims stipulated in the Article 4 paragraph 3 or claims overdue for more than three months stipulated in the Article 4paragraph 4.

Business strategies forvalue creation¥381.8

Note: Excluding claims under bankruptcy or substantial bankruptcy stipulated in the Article 4 paragraph 2 of the Ordinance for Enforcement of the Act on Emergency Measures for
the Revitalization of the Financial Functions as well as high risk claims stipulated in the Article 4 paragraph 3.

Governance for value
creation

Total

Mizuho’s value
creation process(Billions of yen)

As of March 31, 2022
From one month to less From two months to lessLess than one monthThree months or morethan two months
than three months¥303.3
¥31.2
¥22.5
¥24.8

180

Credit Risk、Quantitative Disclosure on Credit Risk

2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(F) CR2: Changes in Defaulted Loans and Debt Securities(Millions of yen)No.
1

Exposure
Defaulted loans and debt securities as of March 31, 2022

2
3
4

Breakdown of changes in loans
and debt securities during thisreporting period

56¥1,200,747

Defaulted

554,032

Returned to non-defaulted status

119,995

Amounts written off

19,900

Other changes(225,884)

Defaulted loans and debt securities as of March 31, 2023
(1+2-3-4+5)¥1,388,999

Note: Other changes corresponds to the amount of variation in defaulted exposures arising from debt recovery and additional credit to defaulted obligors, etc.

(Millions of yen)No.
1

Exposure
Defaulted loans and debt securities as of March 31, 2021

2
3
4

Breakdown of changes in loans
and debt securities during thisreporting period

56258,398

Returned to non-defaulted status

120,653

Amounts written off

26,403

Other changes
Defaulted loans and debt securities as of March 31, 2022
(1+2-3-4+5)

Note: Other changes corresponds to the amount of variation in defaulted exposures arising from debt recovery and additional credit to defaulted obligors, etc.

181

Credit Risk、Quantitative Disclosure on Credit Risk

¥1,243,701

Defaulted(154,296)¥1,200,747

(4) Credit Risk under Internal Ratings-Based (IRB) Approach(i) Summary of Internal Ratings-Based (IRB) Approach
We have adopted the Advanced Internal Ratings-Based (AIRB) Approach as a method to calculate credit risk weighted
assets (RWA) since March 31, 2009. The following business units have adopted AIRB approach:Mizuho Financial Group, Inc., Mizuho Bank, Ltd., Mizuho Trust & Banking Co., Ltd., Mizuho Credit Guarantee Co., Ltd.,
Mizuho Trust Realty Company Limited, Mizuho Bank (China), Mizuho Bank (USA), Ltd., Mizuho Bank Europe N.V.,
Mizuho Capital Markets LLC., Mizuho Markets Cayman LP., and Mizuho Markets Americas LLC.

Executive messages /Features2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

See pages 114 to 118 for a summary of our internal rating system and rating assignment procedures.
Estimation of parameters and validation
We use our own estimates for the parameters indicated below in the calculation of credit RWA under the Basel
Framework. We generally validate the parameters by backtesting or other methods on an annual basis. Methods of
estimation and validation as well as results are approved by the Chief Risk Officer.
PD
Probability of default (likelihood of default of an obligor over a period of one year)
LGD
Loss given default
EAD
Exposure at default
The definition of default conforms to the Notice issued by Japan’s Financial Services Agency.

Details of Estimates:
PD is determined for corporate, sovereign and bank exposures by obligor rating and retail exposures by pool allocations.
Conservative adjustments such as estimation errors have been added to the long-term average of internal default records
to calculate PD. External data are applied to supplement the estimations for low default portfolios.
We apply the regulatory floor PD (0.03%) to A1-rated and A2-rated obligors in the measurement of credit RWA, except forsovereign exposures. Almost all of estimated parameters exceeded actual defaults in this year. The differences stemmed
from such reasons as: defaults in this year were lower than the long-term average in the entire period; and conservative
adjustments have been made to estimated parameters.

Business strategies forvalue creation(ii) Summary of Our Internal Rating System

Governance for value
creation

The application scope of AIRB is determined through taking into account the importance for each business unit, such as
the ratio of its credit RWA to that of the entire group. AIRB is generally applied to those assets held by the business units
that have adopted AIRB except for some asset classes considered immaterial for the purpose of calculating credit
RWA .In addition, AIRB is used for all equity exposures regardless of what approach the business unit has adopted. With
respect to credit RWA exposures under Regarded-Method, AIRB is used for those of which the look-through approach isapplied except for cases where it is difficult to accurately calculate credit RWA regarding their underlying assets based on
the IRB Approach and therefore reliability of credit RWA cannot be secured. The standardized approach will be applied toany of those business units and asset classes that do not meet the above conditions.

Mizuho’s value
creation process

Note: Special purpose companies (SPCs) controlled by the above companies have also adopted the AIRB approach due to theirbusiness operations integrated with their parent companies.

Data section

We estimate LGD based on obligor classifications in our self-assessments or pool allocations, and protection coverage.
For LGD per obligor classifications, we estimate LGD under normal economic circumstances based on prior defaulted
obligor data, making adjustments in consideration of periods of economic downturn using stochastic methods. Ourestimation is based on validation of the time between the default event and the closure of the exposure as well as LGD
for low default portfolios etc. With regard to protection, we estimate LGD per type of collateral using some external data.
We estimate EAD based on prior defaulted obligor data.
(iii) Asset Class-based EAD Ratios to the Total EAD by Credit RWA Calculation Approach
As of March 31, 2023
98.17%
89.62%
4.02%
1.98%
1.48%
1.06%
1.82%
100.00%

As of March 31, 2022
98.43%
89.15%
4.52%
1.92%
1.56%
1.26%
1.56%
100.00%Appendix

Internal Ratings-based Approach
Corporate
RetailEquities
Purchase Receivables
OthersStandardized Approach
Total

Notes: 1. Counterparty credit risk exposures, securitization exposures, and regarded-method exposures are excluded from the amount of credit risk exposures above.
2. As for any portfolio to which the standardized approach is applied, exposure instead of EAD is used for calculation.

182

Qualitative Disclosure on Credit Risk under IRB approach2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(iv) Quantitative Disclosure on Credit Risk under Internal Ratings-based Approach(A) CR6: IRB - Credit Risk Exposures by Portfolio and PD Range

PD scale

1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9

(Millions of yen, %, number in the thousands, year)

a
b
c
d
e
f
g
h
Original Off-balance
EAD
Average post CRM Average Number Averageon-balance
sheet
AveragePDof
LGD
sheet gross exposures CCF
andmaturity(%)(%)
obligors(%)
exposure pre CCF
post-CCF
As of March 31, 2023

Sovereign¥92,687,843¥416,695
77.47 ¥94,992,398
0.00 to <0.15
140
1
0.15 to <0.25
62,99959,7120.25 to <0.50
0.50 to <0.75
143,896
123,468
0.75 to <2.50
44,434
2,853
75.00
10,0912.50 to <10.00
12,762
7,173
10.00 to <100.00
545
0
100.00 (Default)
92,952,620
419,548
77.45 95,192,846
Sub-total
Banks
5,926,492
895,15858.28
7,022,409
0.00 to <0.15
48,91076,29825.72
106,769
0.15 to <0.25
93,564
95,88873.34
180,499
0.25 to <0.50
0.50 to <0.75
164,000
99,135
65.56
203,4440.75 to <2.50
39,532
5,376
71.15
16,5712.50 to <10.00
5,416
534
75.00
5,817
10.00 to <100.00
8,119
8,119
100.00 (Default)
6,286,037
1,172,391
58.08
7,543,631
Sub-total
Corporate (except SME and specialized lending)
45,650,841 34,179,345
73.78 71,083,785
0.00 to <0.15
6,133,416
2,529,373
75.46
7,742,073
0.15 to <0.25
4,010,597
1,656,556
75.96
4,859,123
0.25 to <0.50
0.50 to <0.75
4,320,608
1,838,067
74.29
5,326,215
0.75 to <2.50
2,372,169
931,71073.52
2,439,705
2.50 to <10.00
683,989
122,41978.15
529,21310.00 to <100.00
1,147,106
153,761
72.82
1,239,812
100.00 (Default)
64,318,729 41,411,234
74.00 93,219,930
Sub-total
SME
281,458
38,051
72.61
334,9620.00 to <0.15
700,281
50,40974.09
711,6430.15 to <0.25
636,329
31,584
74.18
636,356
0.25 to <0.50
0.50 to <0.75
1,037,210
59,82381.51
1,057,743
0.75 to <2.50
463,972
20,94878.54
464,2142.50 to <10.00
177,940
4,110
73.93
169,405
10.00 to <100.00
135,732
1,326
73.85
124,788
100.00 (Default)
3,432,924
206,25376.43
3,499,113
Sub-total
Specialized Lending
5,147,398
447,87876.24
5,218,950
0.00 to <0.15
498,544
235,57876.42
638,5430.15 to <0.25
461,708250,37875.94
531,250
0.25 to <0.50
0.50 to <0.75
580,753
209,880
72.46
611,3230.75 to <2.50
125,365
157,189
75.00
130,151
2.50 to <10.00
22,853
1,565
78.23
24,07810.00 to <100.00
45,531
1,682
50.00
23,347100.00 (Default)
6,882,155
1,304,152
75.43
7,177,645
Sub-total
Equities (PD/LGD approach)
2,604,374
114,516100.002,718,890
0.00 to <0.15
48,963
48,9630.15 to <0.25
21,52021,5200.25 to <0.50
0.50 to <0.75
25,41825,4180.75 to <2.50
56,113
56,1132.50 to <10.00
21,73021,73010.00 to <100.00
7,757
7,757
100.00 (Default)¥2,785,877¥114,516
100.00 ¥2,900,394
Sub-total

183

Quantitative Disclosure on Credit Risk under IRB approach

i

j

k

l

RWA

RWA
density(%)

EL

Provisions

0.00
0.18
0.41
0.78
2.70
12.97
100.00
0.00

0.2
0.0
0.0
0.0
0.0
0.0
0.0
0.2

37.05
37.03
36.88
36.98
37.03
36.44
96.18
37.05

1.3
1.0
1.0
1.1
1.9
1.0
1.0
1.3

¥557,569
023,171
68,177
9,827
11,3180670,063

0.58
23.85
38.80
55.21
97.38
157.79
29.25
0.70

¥887
0
91
357
101
339
0
1,777

／
／
／
／
／
／
／
／
1,852

0.04
0.18
0.41
0.96
2.71
12.97
100.00
0.20

0.3
0.0
0.0
0.0
0.0
0.0
0.0
0.5

37.17
36.82
36.74
35.70
33.52
71.89
58.75
37.16

2.5
1.6
1.6
1.5
0.9
4.6
1.5
2.4

1,237,314
21,67375,697
137,482
13,857
22,1074,130
1,512,263

17.61
20.29
41.93
67.57
83.62
380.04
50.87
20.04

1,097
48
240
698
151
542
4,440
7,218

／
／
／
／
／
／
／
／
7,524

0.06
0.18
0.41
1.17
3.34
12.97
100.00
1.64

7.6
5.0
3.3
3.9
1.5
3.2
0.6
25.3

37.16
33.49
32.61
31.16
32.40
30.45
36.71
36.11

2.3
2.4
2.5
2.6
2.4
2.7
2.7
2.4

13,383,361
2,449,699
2,295,917
3,538,502
2,295,135
767,154452,073
25,181,844

18.82
31.64
47.24
66.43
94.07
144.9636.46
27.01

17,873
4,917
6,555
19,22026,272
20,912
419,046
514,797

／
／
／
／
／
／
／
／
536,620

0.06
0.18
0.41
1.08
2.81
12.97
100.00
5.01

0.0
3.2
2.9
4.1
1.4
1.5
0.7
14.2

34.66
23.67
22.69
20.93
19.30
17.22
36.19
23.27

2.2
2.9
3.1
3.4
3.5
3.1
2.1
3.1

43,959143,801
185,357
412,356
214,533
116,764
38,675
1,155,446

13.12
20.20
29.12
38.98
46.21
68.92
30.99
33.02

66
319
597
2,422
2,581
3,786
42,07951,852

／
／
／
／
／
／
／
／
54,050

0.07
0.18
0.41
1.14
3.65
12.97
100.00
0.63

0.6
0.1
0.0
0.0
0.0
0.0
0.0
0.9

31.74
36.67
36.58
39.48
35.93
32.91
54.74
33.35

4.1
4.0
4.0
3.5
4.2
3.1
4.6
4.0

1,288,790
296,314350,304
562,740
162,692
38,534
12,3792,711,756

24.69
46.40
65.93
92.05
125.00160.03
53.02
37.78

1,333
444
803
7,549
1,723
1,028
11,792
24,675

／
／
／
／
／
／
／
／
25,721

0.04
0.18
0.41
1.08
4.28
12.97
100.00
0.50

0.9
0.3
0.1
0.1
0.0
0.0
0.1
1.8

90.00
90.00
90.00
90.00
90.00
90.00
90.00
90.00

5.0
5.0
5.0
5.0
5.0
5.0
5.0
5.0

2,851,079
64,55940,063
66,391
231,793
135,841
87,273¥3,477,002

104.86131.85186.17261.18413.08625.131124.99119.88

／
／
／
／
／
／
／
／
／

／
／
／
／
／
／
／
／
／

Provisions

¥677
219
140
475
2,529
292
2,977
7,312

／
／
／
／
／
／
／
／
7,622

-

／
／
／
／
／
／
／
／
-

271
117
56
120
232
2,191
2,990

／
／
／
／
／
／
／
／
／

0
0
5,500
7,477
5,239
369
18,587

／
／
／
／
／
／
／
／
19,375

393
778
1,818
3,356
3,993
2,333
3,175
15,05030,899

／
／
／
／
／
／
／
／
32,209

65
142
148
219
2,576
549
1,527
17,08322,314

／
／
／
／
／
／
／
／
23,260¥682,425

708,237

Mizuho’s value
creation process

EL

Business strategies forvalue creationlGovernance for value
creationk

Data section(Millions of yen, %, number in the thousands, year)

a
b
c
d
e
f
g
h
i
j
Original Off-balance
EAD
Average post CRM Average Number Average
RWA
on-balance
sheet
AveragePDof
LGD
density
sheet gross exposures CCF
andPD scaleRWA
maturity(%)(%)
obligors(%)(%)
exposure pre CCF
post-CCF
As of March 31, 2023
Purchased receivables (Corporate, etc.) - Default Risk Equivalent¥2,450,340¥244,416
75.76¥2,635,346
0.06
0.7
37.03
1.3
¥329,916
12.51
1 0.00 to <0.15
289,263
29,77777.99
312,488
0.18
0.1
37.03
0.5
64,98820.79
2 0.15 to <0.25
81,867
12,51280.47
91,935
0.41
0.0
37.03
1.5
39,86143.35
3 0.25 to <0.50
4 0.50 to <0.75
55,30180,983
75.66
116,580
1.10
0.0
37.03
3.8
104,201
89.38
5 0.75 to <2.50
206,796
60,21575.00
251,957
2.71
0.0
37.03
0.9
218,056
86.54
6 2.50 to <10.00
6,084
6,084
12.97
0.0
37.03
4.5
11,741
192.97
7 10.00 to <100.00
9,840
9,840
100.00
0.0
33.05
1.7
3,438
34.94
8 100.00 (Default)
9 Sub-total
3,099,494
427,904
75.93
3,424,234
0.62
1.1
37.01
1.3
772,204
22.55
Purchased receivables (Retail) - Default Risk Equivalent
1 0.00 to <0.15
2 0.15 to <0.25
3 0.25 to <0.50
4 0.50 to <0.75
5 0.75 to <2.50
6 2.50 to <10.00
7 10.00 to <100.00
8 100.00 (Default)
9 Sub-total
Purchased receivables (Dilution Risk Equivalent)
983,620
86,58678.92
1,051,956
0.06
0.1
36.98
130,56312.41
1 0.00 to <0.15
161,041
5,841
100.00166,882
0.18
0.0
37.03
39,81023.85
2 0.15 to <0.25
37,144
37,144
0.41
0.0
36.62
14,45538.91
3 0.25 to <0.50
4 0.50 to <0.75
25,87025,870
1.25
0.0
37.03
16,55363.98
5 0.75 to <2.50
23,23523,235
2.70
0.0
37.03
20,29087.32
6 2.50 to <10.00
7 10.00 to <100.00
7,294
7,294
100.00
0.0
32.90
2,617
35.88
8 100.00 (Default)
9 Sub-total
1,238,206
92,42780.25
1,312,384
0.72
0.1
36.95
224,290
17.09
Retail – qualifying revolving retail exposures (QRRE)／
1 0.00 to <0.15／
2 0.15 to <0.25
8
0.35
0.0
79.55
1
13.50
／
3 0.25 to <0.50
10
0.53
0.3
81.25
1
19.24
／
4 0.50 to <0.75
173,923
800,31213.01
278,079
2.43
508.1
81.25
167,398
60.19／
5 0.75 to <2.50
144,821849,8138.26
215,059
4.27
1,910.3
81.25
188,340
87.57／
6 2.50 to <10.00
29,67623,17328.92
36,379
17.72
208.5
81.25
65,282179.44／7 10.00 to <100.00
429
1,126
13.25
576
100.00
1.7
73.31
671
116.37／8 100.00 (Default)
9 Sub-total
348,851
1,674,426
10.82
530,1134.33
2,629.3
81.24
421,694
79.54／
Retail – Residential mortgage
1,647,412
1,685,823
0.08
195.0
29.29
96,4175.71／
1 0.00 to <0.15
1,260,428
1,277,625
0.20
141.4
29.81
154,882
12.12／
2 0.15 to <0.25
1,536,340
12,702100.001,570,330
0.36
216.9
31.79
309,20219.69／
3 0.25 to <0.50
1,744,835
17,27891.19
1,682,251
0.61
224.1
32.42
491,06229.19／
4 0.50 to <0.75
1,212,41188
100.001,213,952
1.05
148.0
31.65
492,668
40.58／
5 0.75 to <2.50
76,511696
100.0077,236
8.82
11.0
34.23
114,041147.65／
6 2.50 to <10.00
16,945794
100.0017,742
47.79
2.9
37.33
31,708178.71／
7 10.00 to <100.00
40,574309
100.0040,847100.003.9
42.24
27,54767.43／
8 100.00 (Default)
9 Sub-total
7,535,461
31,86995.22
7,565,808
1.17
943.6
31.11
1,717,529
22.70／
Other retail19
204,221
0.07
23.6
45.67
16,9708.30／
1 0.00 to <0.15
36
164,537
0.19
9.4
45.01
29,13117.70／
2 0.15 to <0.25
96,2588100.0096,743
0.30
2.6
49.67
25,91226.78／
3 0.25 to <0.50
50,974252
75.00
49,368
0.68
55.9
62.91
26,88354.45／
4 0.50 to <0.75
596,919
2,771
77.22
511,952
1.38
17.1
38.13
212,030
41.41／
5 0.75 to <2.50
321,461
1,623
53.23
102,199
6.59
7.5
12.16
18,09917.70／
6 2.50 to <10.00
67,001
5,066
50.62
25,343
16.90
10.3
33.21
17,20767.89／
7 10.00 to <100.00
56,953
1,756
95.64
42,704100.001.8
44.03
21,49150.32／
8 100.00 (Default)
9 Sub-total
1,189,623
11,47964.87
1,197,071
5.17
128.5
40.20
367,726
30.71／
Total (all portfolios)¥190,069,983 ¥46,866,203
71.53 ¥223,563,172
0.89
3,746.1
36.94
2.00 ¥38,211,823
17.09

AppendixCR6-(Continued)

Executive messages /Features2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Notes: 1. Counterparty credit risk exposures, securitization exposures, and regarded-method exposures are excluded from the amount of credit risk exposures above.
2. On-balance sheet exposures, pre-CCF and pre- CRM off-balance sheet exposures, and the average CCF are allocated to the PD ranges based on pre- CRM PD
estimates.
3. The number of credits is disclosed as the number of data of obligors for QRRE, residential mortgage and other retail excluding credit for business purpose. From the fiscal
year ended March 31, 2023, the amount of accrued interest on business credit for which the specific obligor is unknown in the data are excluded.

184

Quantitative Disclosure on Credit Risk under IRB approach2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(Millions of yen, %, number in the thousands, year)

PD scale

1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9

a
b
c
d
e
f
g
h
Original Off-balance
EAD
Average post CRM Average Number Averageon-balance
sheet
AveragePDof
LGD
sheet gross exposures CCF
andmaturity(%)(%)
obligors(%)
exposure pre CCF
post-CCF
As of March 31, 2022

Sovereign¥85,095,670¥304,196
75.96 ¥87,475,276
0.00 to <0.15
1,905
1,465
0.15 to <0.25
4,276
00.25 to <0.50
0.50 to <0.75
182,872
149,350
0.75 to <2.50
42,978
1,738
75.00
12,4792.50 to <10.00
4,507
144
10.00 to <100.00
642
0
100.00 (Default)
85,332,853
305,935
75.95 87,638,716
Sub-totalBanks4,302,783
899,81955.61
5,340,165
0.00 to <0.15
55,20438,96638.82
84,5690.15 to <0.25
67,732
57,72476.97
130,5900.25 to <0.50
0.50 to <0.75
224,796
75,78655.72
247,8800.75 to <2.50
14,127
5,495
74.94
14,9062.50 to <10.00
00
10.00 to <100.00
8,974
16
20.00
8,977
100.00 (Default)
4,673,619
1,077,808
56.25
5,827,090
Sub-total
Corporate (except SME and specialized lending)
44,821,422 31,496,129
73.65 68,453,327
0.00 to <0.15
4,705,467
1,898,181
74.22
5,948,725
0.15 to <0.25
3,756,468
1,366,857
74.40
4,313,491
0.25 to <0.50
0.50 to <0.75
5,018,000
1,838,952
75.08
5,924,564
0.75 to <2.50
2,170,218
873,27071.90
2,172,781
2.50 to <10.00
653,354
90,79378.75
480,771
10.00 to <100.00
955,015
103,52871.41
1,003,194
100.00 (Default)
62,079,947 37,667,712
73.74 88,296,857
Sub-total
SME
273,908
42,38072.32
315,1540.00 to <0.15
717,80239,854
71.86
721,934
0.15 to <0.25
669,228
19,972
72.85
655,3970.25 to <0.50
0.50 to <0.75
1,175,123
57,55885.19
1,183,793
0.75 to <2.50
473,775
19,88076.62
469,806
2.50 to <10.00
215,243
5,034
74.77
200,029
10.00 to <100.00
161,326
1,962
81.81
149,187
100.00 (Default)
3,686,407
186,64276.87
3,695,303
Sub-total
Specialized Lending
4,547,034
373,75676.42
4,436,765
0.00 to <0.15
456,568
208,11076.32
595,808
0.15 to <0.25
513,578
118,850
74.60
454,239
0.25 to <0.50
0.50 to <0.75
572,368
146,406
75.33
434,7250.75 to <2.50
107,776
152,08874.78
104,951
2.50 to <10.00
41,4303,482
76.36
44,09010.00 to <100.00
52,97549
99.99
26,193100.00 (Default)
6,291,732
1,002,744
75.78
6,096,773
Sub-total
Equities (PD/LGD approach)
2,794,831
3,765
100.002,798,597
0.00 to <0.15
49,90649,9060.15 to <0.25
27,86627,8660.25 to <0.50
0.50 to <0.75
34,61534,6150.75 to <2.50
39,132
39,1322.50 to <10.00
19,89319,89310.00 to <100.00
12,034
12,034100.00 (Default)¥2,978,279¥3,765100.00 ¥2,982,045
Sub-total

185

Quantitative Disclosure on Credit Risk under IRB approach

i

j

k

l

RWA

RWA
density(%)

EL

Provisions

0.00
0.19
0.41
0.87
5.35
13.00
100.00
0.00

0.2
0.0
0.0
0.0
0.0
0.0
0.0
0.2

37.62
30.66
37.61
37.59
37.61
5.29
96.38
37.62

1.4
3.3
1.0
1.6
1.0
1.1
1.0
1.4

¥565,390476
094,095
14,16533
0674,162

0.64
32.53
39.36
63.00
113.50
23.17
30.75
0.76

¥856
0
0
488
251
0
0
1,598

／
／
／
／
／
／
／
／
1,832

0.05
0.19
0.41
1.04
3.83
13.00
100.00
0.26

0.3
0.0
0.0
0.0
0.0
0.0
0.0
0.5

37.57
37.17
36.80
36.67
44.67
37.61
58.35
37.56

2.0
1.9
1.1
0.7
2.3
1.0
1.4
2.0

896,283
22,711
46,285
156,596
22,7510
4,877
1,149,507

16.78
26.85
35.44
63.17
152.62
162.97
54.32
19.72

964
49
165
947
294
0
4,849
7,271

／
／
／
／
／
／
／
／
8,335

0.07
0.19
0.41
1.14
3.52
13.00
100.00
1.45

7.4
4.7
3.2
4.1
205.3
3.3
0.6
228.9

37.75
33.57
32.04
32.46
32.77
27.32
43.89
36.73

2.3
2.3
2.5
2.7
2.6
2.2
2.3
2.3

13,229,922
1,819,743
1,954,938
4,117,057
2,132,361
610,212430,305
24,294,541

19.32
30.59
45.32
69.49
98.13
126.9242.89
27.51

18,1793,812
5,751
21,65825,282
17,090405,890497,665

／
／
／
／
／
／
／
／
570,521

0.08
0.19
0.41
1.13
2.85
13.00
100.00
5.58

0.0
3.3
3.0
4.6
75.5
1.7
0.9
89.4

35.98
23.42
23.39
22.24
20.93
17.64
35.74
23.97

2.5
3.0
3.2
3.3
3.4
3.1
2.3
3.1

56,909147,322
198,483
497,042
242,026
142,42147,381
1,331,586

18.05
20.40
30.28
41.98
51.51
71.20
31.75
36.03

89
322
637
3,044
2,877
4,591
49,544
61,107

／
／
／
／
／
／
／
／
70,053

0.08
0.19
0.41
0.93
3.45
13.00
100.00
0.75

0.6
0.0
0.0
0.0
0.0
0.0
0.0
0.8

32.52
37.10
36.91
39.85
35.71
34.33
56.93
33.99

4.2
4.2
4.1
3.9
4.2
3.6
3.8
4.1

1,164,461
289,701
307,958
405,286
128,942
75,644
12,0632,384,057

26.24
48.62
67.79
93.22
122.85
171.56
46.05
39.10

1,200
422
697
1,587
1,309
1,969
13,947
21,132

／
／
／
／
／
／
／
／
24,226

0.05
0.19
0.41
1.20
3.80
13.00
100.00
0.60

0.9
0.3
0.2
0.2
0.1
0.0
0.1
1.9

90.00
90.00
90.00
90.00
90.00
90.00
90.00
90.00

5.0
2,824,121
5.0
65,863
5.0
51,562
5.0
92,4145.0
147,162
5.0
124,430
5.0
135,384
5.0 ¥3,440,940

100.91131.97185.03266.97376.06625.491124.99115.38

／
／
／
／
／
／
／
／
／

／
／
／
／
／
／
／
／
／

Mizuho’s value
creation process
Business strategies forvalue creation
Governance for value
creation
Data section(Millions of yen, %, number in the thousands, year)

a
b
c
d
e
f
g
h
i
j
k
l
Original Off-balance
EAD
Average post CRM Average Number Average
RWA
on-balance
sheet
AveragePDof
LGD
density
sheet gross exposures CCF
andPD scale
RWA
EL
Provisions
maturity(%)(%)
obligors(%)(%)
exposure pre CCF
post-CCF
As of March 31, 2022
Purchased receivables (Corporate, etc.) - Default Risk Equivalent¥2,458,754¥213,874
77.96 ¥2,625,298
0.06
0.7
37.61
1.2
¥314,753
11.98
¥686
／
1 0.00 to <0.15
314,132
40,82978.43
346,156
0.19
0.1
37.61
0.7
77,94522.51
248／
2 0.15 to <0.25
159,231
17,471
78.43
172,936
0.41
0.0
37.61
1.5
77,58344.86
270／
3 0.25 to <0.50／
4 0.50 to <0.75
90,54537,773
76.05
119,273
1.22
0.0
37.61
1.8
87,06872.99
548／
5 0.75 to <2.50
94,707
94,707
2.91
0.0
37.61
0.8
84,597
89.32
1,038
／
6 2.50 to <10.00
5,475
5,475
13.00
0.0
37.61
5.0
10,979200.52267／
7 10.00 to <100.00
1,102
1,102
100.00
0.0
26.60
1.1
405
36.74
260
／
8 100.00 (Default)
9 Sub-total
3,123,949
309,94977.81
3,364,949
0.27
1.1
37.60
1.2
653,333
19.41
3,320
3,806
Purchased receivables (Retail) - Default Risk Equivalent／
1 0.00 to <0.15／
2 0.15 to <0.25／
3 0.25 to <0.50／
4 0.50 to <0.75／
5 0.75 to <2.50／
6 2.50 to <10.00／
7 10.00 to <100.00／
8 100.00 (Default)
9 Sub-total
Purchased receivables (Dilution Risk Equivalent)
1,243,390
42,432100.001,285,823
0.06
0.0
37.56
149,405
11.61
314／
1 0.00 to <0.15
153,305693
100.00
153,999
0.19
0.0
37.61
37,48024.33
110／
2 0.15 to <0.25
26,662
26,662
0.41
0.0
37.61
10,51039.41
41／
3 0.25 to <0.50／
4 0.50 to <0.75
51,40751,407
1.28
0.0
37.32
33,68865.53
247／
5 0.75 to <2.50
39,71939,719
2.71
0.0
37.61
35,26688.78
405／
6 2.50 to <10.00／
7 10.00 to <100.00
7,685
7,685
100.00
0.0
53.04
4,428
57.62
3,722
／
8 100.00 (Default)
9 Sub-total
1,522,171
43,126100.001,565,297
0.68
0.1
37.63
270,779
17.29
4,841
／
Retail – qualifying revolving retail exposures (QRRE)／／
1 0.00 to <0.15／／
2 0.15 to <0.25
4
0.42
0.0
77.76
0
15.15
0
／
／
3 0.25 to <0.50
19
0.55
0.4
81.08
3
19.72
0
／
／
4 0.50 to <0.75
187,298
819,63613.13
294,968
2.41
528.1
81.08
176,047
59.68
5,770
／
／
5 0.75 to <2.50
146,062
856,667
7.97
214,384
4.27
1,945.9
81.08
186,966
87.21
7,424
／
／
6 2.50 to <10.00
28,26821,41428.23
34,314
17.45
201.3
81.08
61,496179.214,856／／
7 10.00 to <100.00
488
1,134
14.65
652
100.00
1.7
73.32
722
110.68420／／
8 100.00 (Default)
9 Sub-total
362,118
1,698,853
10.72
544,3424.21
2,677.7
81.07
425,236
78.11
18,472
21,177／Retail – Residential mortgage
1,699,325
1,740,189
0.08
205.6
29.28
102,390
5.88
421
／
／
1 0.00 to <0.15
1,133,155
1,137,859
0.20
110.8
31.42
144,515
12.70
723
／
／
2 0.15 to <0.25
1,689,700
1,716,373
0.35
206.5
31.11
321,611
18.73
1,870
／
／
3 0.25 to <0.50
1,887,626
38,68893.70
1,850,726
0.62
280.7
34.28
575,337
31.08
3,947
／
／
4 0.50 to <0.75
1,253,851
160
100.001,254,825
1.06
150.1
32.62
530,531
42.27
4,324
／
／
5 0.75 to <2.50
73,356814
100.0074,256
8.99
10.8
35.40
114,305
153.932,364／／
6 2.50 to <10.00
18,943828
100.0019,796
47.30
3.1
38.27
36,491
184.33
3,603／／
7 10.00 to <100.00
51,159535
100.0051,682100.004.7
42.10
32,90463.66
19,127／／8 100.00 (Default)
9 Sub-total
7,807,118
41,02894.05
7,845,709
1.30
972.7
31.87
1,858,087
23.68
36,382
41,708／Other retail22
237,610
0.07
25.1
46.10
20,6178.67
81／／
1 0.00 to <0.15
27
177,699
0.20
5.8
45.50
33,588
18.90
168
／
／
2 0.15 to <0.25
104,44259
100.00104,899
0.31
2.8
49.35
28,332
27.00
163
／
／
3 0.25 to <0.50
65,830113
75.00
64,145
0.69
63.8
62.82
34,917
54.43
285
／
／
4 0.50 to <0.75
658,294
2,325
81.56
565,735
1.36
21.1
37.96
232,352
41.07
2,791
／
／
5 0.75 to <2.50
346,275
1,629
56.08
108,073
6.56
11.7
14.29
22,501
20.82
689
／
／
6 2.50 to <10.00
94,552
6,211
54.88
35,416
16.67
11.6
34.41
24,796
70.01
2,154
／
／
7 10.00 to <100.00
62,402
1,678
95.97
46,244100.002.1
45.53
24,02951.96
19,134／／8 100.00 (Default)
9 Sub-total
1,331,849
12,01766.36
1,339,824
5.09
144.3
40.74
421,136
31.43
25,46929,198／¥179,190,046 ¥42,349,584
70.92 ¥209,196,911
0.85
4,118.1
37.56
2.0 ¥36,903,368
17.64 ¥677,263 ¥770,860
Total (all portfolios)

AppendixCR6-(Continued)

Executive messages /Features2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Notes: 1. Counterparty credit risk exposures, securitization exposures, and regarded-method exposures are excluded from the amount of credit risk exposures above.
2. On-balance sheet exposures, pre-CCF and pre- CRM off-balance sheet exposures, and the average CCF are allocated to the PD ranges based on pre- CRM PD
estimates.
3. The number of credits is disclosed as the number of data of obligors for QRRE, residential mortgage and other retail excluding credit for business purpose.

186

Quantitative Disclosure on Credit Risk under IRB approach2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(B) CR8:RWA flow statements of credit risk exposures under IRB approach(Billions of yen)

No.
1
2
3
4
5
6
7
8
9

RWA
RWA as of March 31, 2021

Breakdown of changes during thisreporting period¥43,762.5(1,256.0)(1,185.0)
1,404.4
50.9¥42,778.2

Asset size
Portfolio quality
Model updates
Methodology and policy
Acquisitions and disposals
Foreign currency fluctuations
Other

RWA as of March 31, 2022

Notes: 1. Counterparty credit risk exposures, securitization exposures, and regarded-method exposures are excluded from the amount of credit risk exposures above.
2. Asset size corresponds to the amount of variation in RWA arising from changes in book size and composition, increased assets resulting from origination of new
businesses, decreased assets due to matured receivables, etc.
3. Portfolio quality corresponds to the amount of variation in RWA arising from changes in obligor’s and facilities’ ratings, changes in collateral values and guarantees, etc.
4. Methodology and policy corresponds to the amount of variation in RWA arising from methodological changes in calculations driven by regulatory policy changes including
revisions to existing regulations.
5. Foreign currency fluctuations correspond to the amount of variation in RWA arising from the effect of fluctuations in foreign exchange rates involving exposures totransactions denominated in foreign currencies.

(Billions of yen)

No.
1
2
3
4
5
6
7
8
9

RWA
RWA as of March 31, 2022

Breakdown of changes during thisreporting period

RWA as of March 31, 2023

Asset size
Portfolio quality
Model updates
Methodology and policy
Acquisitions and disposals
Foreign currency fluctuations
Other¥42,778.2
2,461.0(284.3)
1,259.9(55.8)¥46,159.0

Notes: 1. Counterparty credit risk exposures, securitization exposures, and regarded-method exposures are excluded from the amount of credit risk exposures above.
2. Asset size corresponds to the amount of variation in RWA arising from changes in book size and composition, increased assets resulting from origination of new
businesses, decreased assets due to matured receivables, etc.
3. Portfolio quality corresponds to the amount of variation in RWA arising from changes in obligor’s and facilities’ ratings, changes in collateral values and guarantees, etc.
4. Methodology and policy corresponds to the amount of variation in RWA arising from methodological changes in calculations driven by regulatory policy changes including
revisions to existing regulations.
5. Foreign currency fluctuations correspond to the amount of variation in RWA arising from the effect of fluctuations in foreign exchange rates involving exposures totransactions denominated in foreign currencies.

187

Quantitative Disclosure on Credit Risk under IRB approach

Portfolio

PD
Range
(%)

c
External rating equivalent

0.00 to<0.10
0.10 to<0.20
Corporate, 0.20 to
<1.00
etc.
1.00 to<5.00
5.00 to<100.00
0.00 to<0.10
0.10 toRetail –<0.20
qualifying
0.20 torevolving retail <1.00
exposures
1.00 to(QRRE)<5.00
5.00 to<100.00
0.00 to<0.10
0.10 to<0.20
Retail –0.20 toResidential <1.00
mortgage
1.00 to<5.00
5.00 to<100.00
0.00 to<0.10
0.10 to<0.20
Other
0.20 to<1.00
retail1.00 to<5.00
5.00 to<100.00f
Number ofobligorsghi
AverageArithmeticof which:
Weighted
historicalDefaulted
averagenewaverageannualobligors
PD bydefaulted
As of
As of
PD
default
obligors
March
March in the year obligors
(%)
rate
(%)
in the year
31, 2018 31, 2019
(%)

S&P

Moody’
Fitch
s

R&I

JCR

AAA～A-

Aaa～A3 AAA～A-

AAA～A-

AAA～A-

0.05

0.06

5,290

5,359

2

-

0.01

BBB+～BBB-

Baa1～Baa3

BBB+～BBB-

BBB+～BBB-

0.13

0.13

2,624

2,710

4

1

0.07

BB+～BB- Ba1～Ba3 BB+～BB- BB+～BB- BB+～BB-

0.47

0.48

19,563

19,445

61

3

0.37

B+～B-

2.19

3.09

7,636

6,711

152

1

1.91

11.47

14.35

2,199

1,905

190

5

7.93

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

2.86

3.00

272,011257,573

4,816

412

1.78

12.55

9.64

139,028

137,197

7,317

362

7.02

0.06

0.06

72,452

67,765

10

-

0.03

0.14

0.13

66,46765,449

16

-

0.05

0.45

0.46

372,274

365,777

617

2

0.22

1.17

1.14

82,547

83,338

250

-

0.42

16.51

17.46

8,170

8,361

808

-

10.48

-

-

-

-

-

-

-

-

-

-

-

-

-

-

0.75

0.64

192,586

157,717

525

8

0.29

1.01

1.33

29,12325,731

277

10

0.90

7.08

17.19

11,424

8,852

671

1

5.44

B1～B3

BBB+～BBB-

B+～B-

B+～B-

B+～B-

CCC+～CCC- Caa1～Caa3 CCC+～CCC- CCC+～CCC- CCC+～CCC-

Mizuho’s value
creation processb

Business strategies forvalue creationaGovernance for value
creation(%, the number of data)

As of March 31, 2023
deData section(C) CR9: IRB - Backtesting of Probability of Default (PD) per Portfolio

Executive messages /Features2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Appendix

Notes: 1. Counterparty credit risk exposures, securitization exposures, and regarded-method exposures are excluded from the amount of credit risk exposures above.
2. Exposures to sovereign and bank is included in the category of corporate, etc. because their obligors can be presumably specified. Likewise, exposures to corporate(except specialized lending), specialized lending, equity and purchased receivables (corporate) is included in the category of corporate, etc. because the data of therespective portfolios is not separately used for PD estimation. Since purchased receivables (retail) account for a small portion of the entire exposure, they are incorporated
with any one of QRRE, residential mortgage or other retail depending on the portfolio classification of the purchased receivables.
3. PD Range indicates the ranges of PD estimates for multiple consolidated internal ratings groups.
4. The following shows the percentages accounted for by the respective portfolios among the credit RWA calculated by the AIRB: Corporate, etc. : 76%, QRRE: 1%,
Residential mortgage : 4%, Other retail : 1%.
5. The number of credits is disclosed as the number of data of obligors for QRRE, residential mortgage and other retail excluding credit for business purpose.
6. The back testing covers the period from September 30, 2021 to September 30, 2022.

188

Quantitative Disclosure on Credit Risk under IRB approach2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(%, the number of data)ab

Portfolio

PD
Range
(%)

As of March 31, 2022dec
External rating equivalent

0.00 to<0.10
0.10 to<0.20
Corporate, 0.20 to
<1.00
etc.
1.00 to<5.00
5.00 to<100.00
0.00 to<0.10
0.10 toRetail –<0.20
qualifying
0.20 torevolving retail <1.00
exposures
1.00 to(QRRE)<5.00
5.00 to<100.00
0.00 to<0.10
0.10 to<0.20
Retail –0.20 toResidential <1.00
mortgage
1.00 to<5.00
5.00 to<100.00
0.00 to<0.10
0.10 to<0.20
Other
0.20 to<1.00
retail1.00 to<5.00
5.00 to<100.00f
Number ofobligorsghi
AverageArithmeticof which:
Weighted
historicalDefaulted
averagenewaverageannualobligors defaulted
PD by
As of
As of
PD
default
in the year obligors
obligors
March
March
(%)
rate
(%)
in the year
31, 2018 31, 2019
(%)

S&P

Moody’
Fitch
s

R&I

JCR

AAA～A-

Aaa～A3 AAA～A-

AAA～A-

AAA～A-

0.05

0.07

5,358

5,292

1

-

0.01

BBB+～BBB-

Baa1～Baa3

BBB+～BBB-

BBB+～BBB-

0.14

0.14

2,864

2,624

2

-

0.07

BB+～BB- Ba1～Ba3 BB+～BB- BB+～BB- BB+～BB-

0.41

0.41

21,167

19,562

130

3

0.37

B+～B-

2.03

2.70

8,026

7,636

214

1

1.91

9.32

12.35

2,156

2,198

202

7

7.93

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

2.88

3.00

290,058

272,011

4,101

407

1.79

12.53

9.54

142,796

139,028

6,869

275

7.76

0.07

0.06

80,18972,452

27

2

0.03

0.14

0.13

57,91052,946

38

-

0.05

0.44

0.45

388,762

389,538

858

1

0.24

1.14

1.12

81,76482,506

310

1

0.46

17.04

17.76

8,503

8,176

811

-

10.32

-

-

-

-

-

-

-

-

-

-

-

-

-

-

0.73

0.65

241,236

192,586

637

12

0.30

1.03

1.31

36,39929,126

365

10

0.80

6.95

17.32

14,496

11,427

791

2

5.05

B1～B3

BBB+～BBB-

B+～B-

B+～B-

B+～B-

CCC+～CCC- Caa1～Caa3 CCC+～CCC- CCC+～CCC- CCC+～CCC-

Notes: 1. Counterparty credit risk exposures, securitization exposures, and regarded-method exposures are excluded from the amount of credit risk exposures above.
2. Exposures to sovereign and bank is included in the category of corporate, etc. because their obligors can be presumably specified. Likewise, exposures to corporate(except specialized lending), specialized lending, equity and purchased receivables (corporate) is included in the category of corporate, etc. because the data of therespective portfolios is not separately used for PD estimation. Since purchased receivables (retail) account for a small portion of the entire exposure, they are incorporated
with any one of QRRE, residential mortgage or other retail depending on the portfolio classification of the purchased receivables.
3. PD Range indicates the ranges of PD estimates for multiple consolidated internal ratings groups.
4. The following shows the percentages accounted for by the respective portfolios among the credit RWA calculated by the AIRB: Corporate, etc. : 79%, QRRE: 1%,
Residential mortgage : 6%, Other retail : 1%.
5. The number of credits is disclosed as the number of data of obligors for QRRE, residential mortgage and other retail excluding credit for business purpose.
6. The back testing covers the period from September 30, 2020 to September 30, 2021.

189

Quantitative Disclosure on Credit Risk under IRB approachStrong

Good

Expected
losses

¥-

¥-

¥-

2,808

1,965

11

1,254

-

70%

-

1,255

-

-

1,255

878

5

Equal to or morethan 2.5 years

0

-

90%

-

0

-

-

0

0

0

3,460
80,762
7,983
96,269
HVCRE

-

-

3,460
80,762
7,983
96,2693,980
201,905
208,730

96
6,460
3,991
10,565RW

ExposureamountRWA

Expected
losses70%

108,52975,970434

3,460
54,151
6,812
65,680- 115%
35,443 250%
39,187-

OnOffbalance balance
sheet
sheet
amount amountLess than 2.5 years 102,544
7,964
Remainingmaturity

Equal to or morethan 2.5 years

177,086

66,04895%

226,650

215,317906

Less than 2.5 years

1,502

-

95%

1,502

1,426

6

Equal to or morethan 2.5 years

19,33822,463120%

36,19743,436

144

372,878

336,151

1,491

Exposureamount

RWA

Satisfactory
Weak
Default
Total

Categories
Exchangetraded
equityexposures
Privateequityexposures
Other
equityexposures
Total
Equity exposures to which
a risk weight of 100% isapplied- 250%
300,471
96,476Equity exposures under the market-based approach etc.
Equity exposures under the market-based approach
OnOffbalance balance
RW
sheet
sheet
amount amount140%

751,030

420,590 300%

106,906

2,038 400%

-

-

-

857,936 422,629
Equity exposures to which a risk weight of 100% is applied

5,484- 100%

Mizuho’s value
creation process

RWA

Less than 2.5 years

Satisfactory
Weak
Default
Total

Regulatory
categorieslBusiness strategies forvalue creation

Good

Total

k

1,171,620 3,514,862

108,417433,669--

1,280,038 3,948,531

5,484

Appendixthan 2.5 yearsj

Governance for value
creation(Millions of yen, %)As of March 31, 2023
a
b
c
d
e
f
g
h
i
Specialized lending under slotting criteria approach
Other than HVCRE
OnOffExposure amount
Regulatory
Remainingbalance balance
RW
categories
maturity
sheet
sheet
PF
OF
CF
IPRE
amount amountLess than 2.5 years¥¥- 50%¥¥¥¥Strong
Equal to or more
3,744 70%2,808-

Data section(D) CR10: IRB -Specialized Lending under the Slotting Criteria Approach and Equity Exposures under the Marketbased Approach etc.

Executive messages /Features2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）5,484

Notes: 1. Counterparty credit risk exposures, securitization exposures, and regarded-method exposures are excluded from the amount of credit risk exposures above.
2. PF, OF, CF and IPRE respectively stand for project finance, object finance, commodity finance and income-producing real estate.

190

Quantitative Disclosure on Credit Risk under IRB approach2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(Millions of yen, %)As of March 31, 2022
a
b
c
d
e
f
g
h
i
Specialized lending under slotting criteria approach
Other than HVCRE
OnOffExposure amount
Regulatory
Remainingbalance balance
RW
categories
maturity
sheet
sheet
PF
OF
CF
IPRE
amount amountLess than 2.5 years ¥25,010¥- 50%¥- ¥25,010¥¥Strong
Equal to or more
1,702 70%
1,276
than 2.5 years

Good

Strong

Good

Total

k

l

RWA

Expected
losses¥25,010¥12,505

¥-

1,276

893

5

Less than 2.5 years

-

-

70%

-

-

-

-

-

-

-

Equal to or morethan 2.5 years

1,715

-

90%

-

1,715

-

-

1,715

1,543

13

16,293
12,8436,770
62,632

23,651 115%
27,593 250%
52,946-

34,04033,5678,321- 103,930
HVCRE

-

-

34,04033,5678,321
103,930

39,146
83,918138,006

953
2,685
4,160
7,817

RW

ExposureamountRWA

70%

24,553

17,187

98

95%

199,709

189,724

798

Satisfactory
Weak
Default
Total

Regulatory
categoriesj

OnOffbalance balance
sheet
sheet
amount amountLess than 2.5 years
23,855920
Remainingmaturity

Expected
lossesEqual to or morethan 2.5 years

150,919

65,012Less than 2.5 years

7,023

-

95%

7,030

6,678

28

Equal to or morethan 2.5 years

4,497

2,970

120%

6,727

8,073

26

238,020

221,663

952

Exposureamount

RWA

Satisfactory
Weak
Default
Total

Categories
Exchangetraded
equityexposures
Privateequityexposures
Other
equityexposures
Total
Equity exposures to which
a risk weight of 100% isapplied- 250%
186,295
68,902Equity exposures under the market-based approach etc.
Equity exposures under the market-based approach
OnOffbalance balance
RW
sheet
sheet
amount amount140%

697,223

40,596 300%

737,820 2,213,461

97,1072,338 400%

98,844395,376

-

-

-

-

-

794,33142,935Equity exposures to which a risk weight of 100% is applied

4,754- 100%

836,664 2,608,837

4,754

4,754

Notes: 1. Counterparty credit risk exposures, securitization exposures, and regarded-method exposures are excluded from the amount of credit risk exposures above.
2. PF, OF, CF and IPRE respectively stand for project finance, object finance, commodity finance and income-producing real estate.

191

Quantitative Disclosure on Credit Risk under IRB approachExecutive messages /Features2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）(5) Credit Risk under Standardized Approach(i) Status of portfolios to which the standardized approach is applied
Eligible external credit assessment institutions used for determining the risk weight for portfolios to which thestandardized approach is applied are Rating and Investment Information, Inc. (R&I) in Japan and S&P Global Ratings
overseas.
We apply a risk weight of 100% for all of our corporate exposure.

1
2
3
4
5
6
7
8
9
10
11

12
13
14
15
16
17
18
19
20
21
22

Risk weight
Asset classes
CashJapanese sovereigns and Bank of Japan
Foreign central sovereigns and central
banksBank for International Settlements,etc.
Japanese non-central governmental PSEs
Non-central governmental PSEs otherthan foreign central sovereigns, etc.
International development banks
Japan Finance Organization for
Municipalities
Japanese government institutions
Three regional public sectors of Japan
Financial institutions and business
operators conducting the type I
financial instruments businessCorporates, etc.
Regulatory retail portfolios and individuals
Mortgage housing loan
Real estate acquisition business, etc.
Claims past due for 3 months or more
(excluding mortgage housing loan)
Claims past due for 3 months or moreregarding mortgage housing loanBills in process of collection
With guarantee of Credit Guarantee
Corporations, etc.
With guarantee of Regional Economy
Vitalization Corporation of Japan
Investments, etc.(excluding significant
investments)
Total

0%

k
Total

¥274
915,971
113,515¥-¥113,733¥-¥162,565¥-¥82,503

¥-

¥-

¥-

¥274
915,971472,317

1,326
-

-

4,234

-

16

-

2

-

-

-

1,326
4,254

-

-

-

-

-

-

-

-

-

-

-

-

1,773
-

351,161-

166,388-

24,604

-

-

-

1,773
542,154

-

-

-

-

25

- 1,946,740
9

28

-

- 1,946,740
63

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

¥- ¥2,053,861

¥28

¥-

¥- ¥3,884,877¥1,031,087¥1,773 ¥469,130¥- ¥328,995

Business strategies forvalue creationaGovernance for value
creation(Millions of yen)

As of March 31, 2023
b
c
d
e
f
g
h
i
j
Credit exposures amount (post CCF and post-CRM)
10% 20% 35% 50% 75% 100% 150% 250% 1,250%

Data section(A) CR5: Standardized Approach - Exposures by Asset Classes and Risk Weights

Mizuho’s value
creation process(ii) Quantitative disclosure on credit risk under standardized approach

Appendix

Note: Counterparty credit risk exposures, credit risk related to securitization transactions, and fund exposures are excluded from the amount of credit risk exposures above.

192

Credit Risk under Standardized Approach2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(Millions of yen)

a

1
2
3
4
5
6
7
8
9
10
11

12
13
14
15
16
17
18
19
20
21
22

Risk weight
Asset classes
CashJapanese sovereigns and Bank of Japan
Foreign central sovereigns and central
banksBank for International Settlements,etc.
Japanese non-central governmental PSEs
Non-central governmental PSEs otherthan foreign central sovereigns, etc.
International development banks
Japan Finance Organization for
Municipalities
Japanese government institutions
Three regional public sectors of Japan
Financial institutions and business
operators conducting the type I
financial instruments businessCorporates, etc.
Regulatory retail portfolios and individuals
Mortgage housing loan
Real estate acquisition business, etc.
Claims past due for 3 months or more
(excluding mortgage housing loan)
Claims past due for 3 months or moreregarding mortgage housing loanBills in process of collection
With guarantee of Credit Guarantee
Corporations, etc.
With guarantee of Regional Economy
Vitalization Corporation of Japan
Investments, etc.(excluding significant
investments)
Total

0%

As of March 31, 2022
b
c
d
e
f
g
h
i
j
Credit exposures amount (post CCF and post-CRM)
10% 20% 35% 50% 75% 100% 150% 250% 1,250%

Credit Risk under Standardized Approach

Total

¥190
472,838
117,634¥-¥120,364¥-¥144,989¥-¥17,893

¥0

¥-

¥-

¥190
472,838
400,882

1,462
-

-

6

-

2

-

11

-

-

-

1,462
20

-

-

-

-

-

-

-

-

-

-

-

-

5,015
-

413,904-

49,307-

37,172

-

-

-

5,015
500,385

-

-

-

-

27

- 1,678,282
9

37

-

- 1,678,282
75

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

¥- ¥1,733,369

¥37

¥-

¥- ¥3,059,154¥592,126¥5,015 ¥534,276¥- ¥194,328

Note: Counterparty credit risk exposures, credit risk related to securitization transactions, and fund exposures are excluded from the amount of credit risk exposures above.

193k

(ii) Quantitative Disclosure on Credit Risk Mitigation Techniques
Counterparty risk exposures, securitization exposures, and regarded-method exposures are excluded from the amount ofcredit risk exposures below.
(A) CR3: Credit Risk Mitigation Techniques - Overview(Millions of yen)

a

1
2
3
4
5

Loans
Debt securities
Other on balance debt assets
Total (1+2+3)
Of which defaulted

Exposures
unsecured¥67,609,724
29,907,285
72,504,486¥170,021,496
393,206

As of March 31, 2023bcde
Exposures secured Exposures secured
Exposures secured
by financial
by credit
Exposures secured
by collateralguarantees
derivatives¥17,763,631¥8,001,576¥6,999,075¥813
984,300
388,878475,156
115,139
3,153
83,789¥18,863,072¥8,393,608¥7,558,021¥813
508,536
188,081
66,562-

Notes: 1. Other on-balance debt assets include deposits, call loans, bills purchased, monetary claims bought, money held in trust, and foreign exchange assets, etc.
2. Defaulted exposures include restructured loans, loans past due for three months or more, loans to bankrupt borrowers and so on.

(Millions of yen)

a

1
2
3
4
5

Loans
Debt securities
Other on balance debt assets
Total (1+2+3)
Of which defaulted

Exposures
unsecured¥64,996,863
37,495,095
55,925,476¥158,417,435
354,069

As of March 31, 2022bcde
Exposures secured Exposures secured
Exposures secured
by financial
by credit
Exposures secured
by collateralguarantees
derivatives¥17,179,414¥7,279,365¥7,525,234¥3,937
831,788356,888364,375
118,325
4,627
100,836¥18,129,528¥7,640,881¥7,990,446¥3,937
325,603
143,463
81,808-Mizuho’s value
creation process

We obtain collateral and guarantees as a means of securing credit. In obtaining the collateral and guarantees, weevaluate the value of the collateral, guarantee performance capability of guarantor and legal enforceability, and we also
conduct periodical subsequent re-evaluations. Furthermore, we monitor any concentration of risks in particular corporategroups including indirect credit exposure such as collateral issuers and guarantees. When calculating the credit risk
weighted assets for capital adequacy ratio regulations, the effect of credit risk mitigation through financial collateral(mainly deposits and securities), other collateral (mainly real estate) and guarantees by "sovereign, banks or corporations
above a certain credit rating" is reflected.

Business strategies forvalue creation(i) Summary of Risk Profile, Risk Management Policies/ Procedures and Structure

Governance for value
creation(6) Credit Risk Mitigation Techniques

Executive messages /Features2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Appendix

Data section

Notes: 1. Other on-balance debt assets include deposits, call loans, bills purchased, monetary claims bought, money held in trust, and foreign exchange assets, etc.
2. Defaulted exposures include restructured loans, loans past due for three months or more, loans to bankrupt borrowers and so on.

194

Credit Risk Mitigation Techniques、Equity investments in funds

2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(B) CR4: Standardized Approach - Credit Risk Exposure and Credit Risk Mitigation (CRM) Effects(Millions of yen, except percentages)

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22

Asset classes
CashJapanese sovereigns and Bank of Japan
Foreign central sovereigns and central banks
Bank for International Settlements,etc.
Japanese non-central governmental PSEs
Non-central governmental PSEs other thanforeign central sovereigns, etc.
International development banks
Japan Finance Organization for Municipalities
Japanese government institutions
Three regional public sectors of Japan
Financial institutions and business operators
conducting the type I financial instruments businessCorporates, etc.
Regulatory retail portfolios and individuals
Mortgage housing loan
Real estate acquisition business, etc.
Claims past due for 3 months or more
(excluding mortgage housing loan)
Claims past due for 3 months or moreregarding mortgage housing loanBills in process of collection
With guarantee of Credit Guarantee
Corporation, etc.
With guarantee of Regional Economy
Vitalization Corporation of Japan
Investments, etc.(excluding significant
investments)
Total

As of March 31, 2023abcdExposures before CCF andExposures post-CCF andCRM
CRM
On-balance
Off-balanceOn-balance
Off-balance
sheet amount sheet amount sheet amount sheet amount
¥274
¥¥274
¥915,971
915,971472,317472,317
1,326
1,326
-

e

f

¥186,532-

RWA
density
0.00
0.00
39.49
0.00

RWA

4,254

-

4,254

-

858

20.16

1,773
-

-

1,773
-

-

177
-

10.00
-

512,358

79,217501,990

40,164

178,030

32.83

1,668,197-

375,198-

1,667,299-

279,441-

1,946,740-

100.00
-

63

-

63

-

65

102.68

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

¥3,576,537¥454,415¥3,565,271¥319,605¥2,312,405

59.52

195

Credit Risk Mitigation Techniques、Equity investments in funds

7
8
9
10
11
12
13
14
15
16
17
18
19
20
21

20

-

20

-

14

68.07

5,015
-

-

5,015
-

-

501
-

10.00
-

438,638

146,028

431,040

69,345

144,60728.89

1,438,056-

347,511-

1,425,002-

253,280-

1,678,282-

100.00
-

75

-

75

-

80

106.78

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

¥2,757,181¥493,540¥2,736,528¥322,625¥1,937,947

63.34

Appendix

Data section

22¥114,461-

RWA
density
0.00
0.00
28.55
0.00

RWA

Mizuho’s value
creation process

6fBusiness strategies forvalue creation

1
2
3
4
5

Asset classes
CashJapanese sovereigns and Bank of Japan
Foreign central sovereigns and central banks
Bank for International Settlements,etc.
Japanese non-central governmental PSEs
Non-central governmental PSEs other thanforeign central sovereigns, etc.
International development banks
Japan Finance Organization for Municipalities
Japanese government institutions
Three regional public sectors of Japan
Financial institutions and business operators
conducting the type I financial instruments businessCorporates, etc.
Regulatory retail portfolios and individuals
Mortgage housing loan
Real estate acquisition business, etc.
Claims past due for 3 months or more
(excluding mortgage housing loan)
Claims past due for 3 months or moreregarding mortgage housing loanBills in process of collection
With guarantee of Credit Guarantee
Corporation, etc.
With guarantee of Regional Economy
Vitalization Corporation of Japan
Investments, etc.(excluding significant
investments)
Total

e

Governance for value
creation(Millions of yen, except percentages)

As of March 31, 2022abcdExposures before CCF andExposures post-CCF andCRM
CRM
On-balance
Off-balanceOn-balance
Off-balance
sheet amount sheet amount sheet amount sheet amount
¥190
¥¥190
¥472,838
472,838
400,882
400,882
1,462
1,462
-

Executive messages /Features2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）196

Credit Risk Mitigation Techniques、Equity investments in funds

2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(C) CR7: IRB - Effect on RWA of Credit Derivatives Used as CRM Techniques(Millions of yen)

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

Portfolios
Sovereign - FIRB
Sovereign - AIRB
Banks - FIRB
Banks - AIRB
Corporate (except Specialized lending) - FIRB
Corporate (except Specialized lending) - AIRB
Specialized lending - FIRB
Specialized lending - AIRB
Retail - qualifying revolving retail exposures (QRRE)
Retail - residential mortgage exposures
Other retail exposures
Equity - FIRB
Equity - AIRB
Purchased receivables - FIRB
Purchased receivables - AIRB
Total

As of March 31, 2023abPre-credit
Actual RWA
derivatives RWA¥¥540,327
540,327
1,420,323
1,420,323
26,505,064
26,504,979
3,310,626
3,310,626
421,694
421,694
1,717,529
1,717,529
367,726
367,726
3,477,002
3,477,002
996,494
996,494¥38,756,790¥38,756,705

Portfolios
Sovereign - FIRB
Sovereign - AIRB
Banks - FIRB
Banks - AIRB
Corporate (except Specialized lending) - FIRB
Corporate (except Specialized lending) - AIRB
Specialized lending - FIRB
Specialized lending - AIRB
Retail - qualifying revolving retail exposures (QRRE)
Retail - residential mortgage exposures
Other retail exposures
Equity - FIRB
Equity - AIRB
Purchased receivables - FIRB
Purchased receivables - AIRB
Total

As of March 31, 2022abPre-credit
Actual RWA
derivatives RWA¥¥528,068
528,068
1,076,926
1,076,926
25,756,143
25,755,968
2,832,561
2,832,561
425,236425,236
1,858,087
1,858,087
421,136
421,1363,440,940
3,440,940
924,113924,113¥37,263,213¥37,263,038(Millions of yen)

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

(7) Equity investments in funds(Millions of yen)

Equity investments in funds - Look-through approach
Equity investments in funds - Mandate-based approach
Equity investments in funds - Simple approach (subject to 250% RW)
Equity investments in funds - Simple approach (subject to 400% RW)
Equity investments in funds - Fall-back approach
Total

197

Credit Risk Mitigation Techniques、Equity investments in funds

As of March 31, 2023
Exposure¥2,209,784
208,236
6,379¥2,424,399

As of March 31, 2022
Exposure¥2,130,723
202,811
18,214¥2,351,749

(2) Quantitative Disclosure on Counterparty Credit Risk
(A) CCR1: Analysis of Counterparty Credit risk (CCR) Exposure by Approach(Millions of yen)

1
2
3
4
5
6

SA-CCR
Current Exposure Method
Expected Positive Exposure Method
Simple Approach for credit risk mitigation
Comprehensive Approach for credit
risk mitigation
VAR for SFTs
Total

As of March 31, 2023cdAlpha used forcomputingregulatory
EEPE
EAD
1.4
／
／
／
2,469,562
1.4
／
／

a

b

e

f

Replacementcost¥373,710／／

Potential
futureexposure¥521,124
／
／

／

／

／

／

17,214,494

1,352,842

／
／

／
／

／
／

／
／

／

¥2,682,821

EAD
post-CRM¥894,835
3,457,387
129,099

RWA¥335,109
935,129
59,739Mizuho’s value
creation process(1) Summary of Risk Profile, Risk Management Policies/ Procedures and Structure
In managing the risk pertaining to counterparty credit risk (including central counterparty) in derivatives transactions andrepurchase transactions etc., we generally allocate risk capital together with loans, etc., (we take into account wrong way
risk for derivatives transactions). For derivatives transactions and repurchase transactions, in cases in which a bilateral
netting agreement is valid in light of the legal system of the relevant jurisdiction, we take its effect into consideration. As
to derivatives transactions with financial institutions, etc., we periodically, where necessary, deliver and receive collateral
to and from the counterparty based on the replacement cost to mitigate credit risk (collateralized derivatives
transactions). In conducting such transactions, there is a risk in which we may be required to provide additional collateralin cases where our credit profile deteriorates.

Business strategies forvalue creation■ Counterparty Credit Risk

Executive messages /Features2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

2
3
4
5
6

SA-CCR
Current Exposure Method
Expected Positive Exposure Method
Simple Approach for credit risk mitigation
Comprehensive Approach for credit
risk mitigation
VAR for SFTs
Total

b

Replacementcost¥374,559／／

Potential
futureexposure¥382,670
／
／

／

／

／

／
／

／
／

／
／

e

f

EAD
post-CRM¥757,230
3,286,948
122,908¥243,346
1,008,311
80,888／16,298,724

982,204／／／¥2,314,751

RWA

Data section

1aGovernance for value
creation(Millions of yen)

As of March 31, 2022cdAlpha used forcomputingregulatory
EEPE
EAD
1.4
／
／
／
2,347,820
1.4／／(B) CCR2: Credit Valuation Adjustment (CVA) Capital Charge(Millions of yen)

As of March 31, 2023
a
EAD post-CRM
1
2
3
4
5

Total portfolios subject to the Advanced CVA capital charge(i) VAR component (including the 3×multiplier)(ii) Stressed VAR component (including the 3×multiplier)
All portfolios subject to the Standardized CVA capital charge
Total subject to the CVA capital charge

b
RWA

¥／
／
4,321,419¥4,321,419¥1,820,083¥1,820,083

Appendix(Millions of yen)

As of March 31, 2022a
EAD post-CRM
1
2
3
4
5

Total portfolios subject to the Advanced CVA capital charge(i) VAR component (including the 3×multiplier)(ii) Stressed VAR component (including the 3×multiplier)
All portfolios subject to the Standardized CVA capital charge
Total subject to the CVA capital charge¥／／
3,994,694¥3,994,694b
RWA¥2,108,205¥2,108,205

198

Risk Management of Counterparty Credit Risk、Quantitative Disclosure on Counterparty Credit Risk

2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(C) CCR3: Standardized Approach - CCR Exposures by Regulatory Portfolio and Risk Weights(Millions of yen)

As of March 31, 2023
b
c
d
e
f
g
h
Credit exposures amount (post CCF and post-CRM)
10%
20%
50%
75%
100% 150% Other

a

1
2
3
4
5
6
7
8
9
10
11
12
13
14

Risk weight
Regulatory portfolio
Japanese sovereigns and Bank of Japan
Foreign central sovereigns and central banks
Bank for International Settlements,etc.
Japanese non-central governmental PSEs
Non-central governmental PSEs other thanforeign central sovereigns, etc.
International development banks
Japan Finance Organization for Municipalities
Japanese government institutions
Three regional public sectors of Japan
Financial institutions and business operators
conducting the type I financial instruments businessCorporates, etc.
Regulatory retail portfolios and individuals
Other assets
Total

0%

i
Total

¥15,173
12,280-¥-¥7,862-¥23,524
-

¥-

¥550
-

¥5,226-¥-¥15,173
49,445---62,661

5,725

-

4,370

-

-

72,757

638
-

703
-

-

-

-

-

-

-

638
703
-

-

-

645,778

29,494-96,598--771,871¥28,092¥703¥716,302¥58,745- 1,157,102¥- ¥1,258,621¥5,226- 1,157,102¥- ¥2,067,692(Millions of yen)

As of March 31, 2022
b
c
d
e
f
g
h
Credit exposures amount (post CCF and post-CRM)
10%
20%
50%
75%
100% 150% Other

a

1
2
3
4
5
6
7
8
9
10
11
12
13
14

Risk weight
Regulatory portfolio
Japanese sovereigns and Bank of Japan
Foreign central sovereigns and central banks
Bank for International Settlements,etc.
Japanese non-central governmental PSEs
Non-central governmental PSEs other thanforeign central sovereigns, etc.
International development banks
Japan Finance Organization for Municipalities
Japanese government institutions
Three regional public sectors of Japan
Financial institutions and business operators
conducting the type I financial instruments businessCorporates, etc.
Regulatory retail portfolios and individuals
Other assets
Total

0%

i
Total

¥31,648
17,022-¥-¥17,725-¥5,816-¥-¥6,046-¥-¥-¥31,648
46,611---

18,112

1,894

-

4,770

-

-

24,777

1,927
-

1,274
-

-

-

-

-

-

-

1,927
1,274
-

-

-

646,951

16,753-

104,495--

768,199¥50,598¥1,274¥682,789¥24,464¥-

820,799¥936,112¥-

820,799¥- ¥1,695,238

199

Risk Management of Counterparty Credit Risk、Quantitative Disclosure on Counterparty Credit Risk

1
2
3
4
5
6
7
8
9

f

¥14,650,473
6,442
166
434
14,657,516

0
0.41
0.77
2.7
0

0
0
0
0
0

37.03
37.03
37.03
37.03
37.03

4.8
4.9
1.2
1.6
4.8

¥82,414
4,860
93
410
87,778

0.56
75.44
56.22
94.41
0.59

2,635,921
35,236
4,591
508
126
0
2,676,383

0.04
0.18
0.41
1.28
2.7
100
0.05

0.2
0
0
0
0
0
0.3

37.03
37.03
37.01
36.34
37.03
96.18
37.02

2.7
1.6
3
1
1
1
2.7

554,910
12,428
3,029
329
110
0
570,808

21.05
35.27
65.98
64.9
87.32
29.24
21.32

1,801,432
82,82458,33489,966
66,042
4,052
3,318¥2,105,971

0.06
0.18
0.41
0.95
2.82
12.97
100
0.38

2.4
1
0.7
0.8
0.2
0.1
0
5.5

37
36.21
36.3
36.34
36.64
34.75
26.33
36.89

2.9
2.6
2.8
3.1
1.7
1.8
1.3
2.9

392,386
29,77932,19570,42040,592
6,370
1,095¥572,842

21.78
35.95
55.19
78.27
61.46
157.2
33.01
27.2

RWA

g
RWA density(%)

Appendix

Data section

1
2
3
4
5
6
7
8
9

b
AveragePD (%)

Mizuho’s value
creation process

1
2
3
4
5
6
7
8
9

PD scale
Sovereign0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
100.00 (Default)
Sub-totalBanks
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
100.00 (Default)
Sub-total
Corporate
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
100.00 (Default)
Sub-totalaEAD
post-CRM

Business strategies forvalue creation(Millions of yen, %, number in the thousands,year)

As of March 31, 2023cde
Number of
Average
Averagecounterparty LGD (%)
maturity

Governance for value
creation(D) CCR4: IRB - CCR Exposures by Portfolio and PD Scale

Executive messages /Features2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）200

Risk Management of Counterparty Credit Risk、Quantitative Disclosure on Counterparty Credit Risk

2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

CCR4-(Continued)

PD scaleSME
1 0.00 to <0.15
2 0.15 to <0.25
3 0.25 to <0.50
4 0.50 to <0.75
5 0.75 to <2.50
6 2.50 to <10.00
7 10.00 to <100.00
8 100.00 (Default)
9 Sub-total
Specialized Lending
1 0.00 to <0.15
2 0.15 to <0.25
3 0.25 to <0.50
4 0.50 to <0.75
5 0.75 to <2.50
6 2.50 to <10.00
7 10.00 to <100.00
8 100.00 (Default)
9 Sub-total
Purchased receivables
1 0.00 to <0.15
2 0.15 to <0.25
3 0.25 to <0.50
4 0.50 to <0.75
5 0.75 to <2.50
6 2.50 to <10.00
7 10.00 to <100.00
8 100.00 (Default)
9 Sub-total
Retails
1 0.00 to <0.15
2 0.15 to <0.25
3 0.25 to <0.50
4 0.50 to <0.75
5 0.75 to <2.50
6 2.50 to <10.00
7 10.00 to <100.00
8 100.00 (Default)
9 Sub-total
Total (all portfolios)(Millions of yen, %, number in the thousands,year)aEAD
post-CRM

As of March 31, 2023cde
Number of
Average
Averagecounterparty LGD (%)
maturityb
AveragePD (%)fg
RWA density
(%)

RWA

¥240
4,131
24,629
3,702
2,150
587
261
35,704

0.13
0.18
0.41
1.04
2.78
12.97
100
1.52

0
0.5
0.4
0.6
0.1
0.1
0
2

21.55
26.55
35.69
24.09
19.65
20.02
39.59
32.14

3.5
3
3.4
2.8
3.5
2.4
2.7
3.3

¥46
1,029
12,454
1,621
1,014
455
106
16,728

19.44
24.91
50.56
43.8
47.18
77.54
40.57
46.85

66,41137,924
26,972
15,920
2,759
413
1,513
151,916

0.1
0.18
0.41
1.14
3.22
12.97
100
1.37

0.2
0
0
0
0
0
0
0.3

41.3
37.03
37.03
37.33
37.03
37.03
52.26
39.08

4.1
4.7
4.6
4.3
3.1
4.9
3.5
4.3

25,001
19,602
19,37015,400
3,136
816
826
84,155

37.64
51.68
71.81
96.73
113.65197.25
54.62
55.39

-

-

-

-

-

-

-

341
3
15
1
362
¥19,627,854

1.74
3.65
14.4
100
2.63
0.06

0.8
0
0
0
0.9
9.2

27.83
19.61
15.88
29.23
27.25
37.02

／
／
／
／
／
／
／
／
／
4.3

118
1
4
0
124
¥1,332,439

34.67
28.07
30.02
27.42
34.38
6.78

201

Risk Management of Counterparty Credit Risk、Quantitative Disclosure on Counterparty Credit Risk

1
2
3
4
5
6
7
8
9

¥14,555,099
15
7,137
12
14,562,265

0.00
0.19
0.87
2.71
0.00

0.0
0.0
0.0
0.0
0.0

37.61
37.61
37.61
37.61
37.61

4.8
2.0
4.7
1.0
4.8

¥94,1115
6,813
11100,942

0.64
32.53
95.47
88.78
0.69

2,102,528
27,91812,717
3,201
2,703
0
2,149,069

0.05
0.19
0.41
1.17
2.71
100.00
0.06

0.2
0.0
0.0
0.0
0.0
0.0
0.3

37.61
37.61
37.59
37.60
37.60
96.38
37.60

2.5
1.4
2.6
0.8
1.7
1.0
2.5

485,467
10,026
8,591
2,283
2,714
0
509,083

23.08
35.91
67.55
71.30
100.4130.74
23.68

1,476,856
56,79931,79062,13337,661
4,525
5,419¥1,675,187

0.06
0.19
0.41
1.15
3.10
13.00
100.00
0.54

2.4
1.0
0.7
0.9
0.3
0.1
0.0
5.7

37.56
36.38
35.87
36.82
35.62
34.79
40.98
37.42

2.9
2.5
2.4
2.7
2.1
2.1
1.3
2.9

341,551
19,913
16,58349,32523,6977,261
2,513¥460,846

23.12
35.05
52.16
79.38
62.92
160.45
46.38
27.51

RWA

g
RWA density(%)

Mizuho’s value
creation processfAppendix

Data section

1
2
3
4
5
6
7
8
9

b
AveragePD (%)

Business strategies forvalue creation

1
2
3
4
5
6
7
8
9

PD scale
Sovereign0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
100.00 (Default)
Sub-totalBanks
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
100.00 (Default)
Sub-total
Corporate
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
100.00 (Default)
Sub-totalaEAD
post-CRM

Governance for value
creation(Millions of yen, %, number in the thousands,year)

As of March 31, 2022cde
Number of
Average
Averagecounterparty LGD (%)
maturity

Executive messages /Features2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）202

Risk Management of Counterparty Credit Risk、Quantitative Disclosure on Counterparty Credit Risk

2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

CCR4-(Continued)

PD scaleSME
1 0.00 to <0.15
2 0.15 to <0.25
3 0.25 to <0.50
4 0.50 to <0.75
5 0.75 to <2.50
6 2.50 to <10.00
7 10.00 to <100.00
8 100.00 (Default)
9 Sub-total
Specialized Lending
1 0.00 to <0.15
2 0.15 to <0.25
3 0.25 to <0.50
4 0.50 to <0.75
5 0.75 to <2.50
6 2.50 to <10.00
7 10.00 to <100.00
8 100.00 (Default)
9 Sub-total
Purchased receivables
1 0.00 to <0.15
2 0.15 to <0.25
3 0.25 to <0.50
4 0.50 to <0.75
5 0.75 to <2.50
6 2.50 to <10.00
7 10.00 to <100.00
8 100.00 (Default)
9 Sub-total
Retails
1 0.00 to <0.15
2 0.15 to <0.25
3 0.25 to <0.50
4 0.50 to <0.75
5 0.75 to <2.50
6 2.50 to <10.00
7 10.00 to <100.00
8 100.00 (Default)
9 Sub-total
Total (all portfolios)(Millions of yen, %, number in the thousands,year)aEAD
post-CRM

As of March 31, 2022cde
Number of
Average
Averagecounterparty LGD (%)
maturityb
AveragePD (%)fg
RWA density
(%)

RWA

¥8,0793,830
23,42011,648
2,843
1,166
410
51,399

0.12
0.19
0.41
0.95
2.76
13.00
100.00
1.68

0.0
0.6
0.4
0.7
0.2
0.1
0.0
2.3

36.96
23.13
35.09
30.77
20.58
22.24
30.47
32.38

4.5
3.2
4.2
4.2
3.8
3.2
3.0
4.1

¥2,885854
12,984
7,363
1,435
1,060
144
26,728

35.70
22.30
55.44
63.21
50.49
90.92
35.14
52.00

187,025
66,49735,66433,232
5,266
2,156
2,046
331,888

0.09
0.19
0.41
1.01
4.11
13.00
100.00
1.00

0.2
0.0
0.0
0.0
0.0
0.0
0.0
0.3

39.78
37.64
37.61
37.61
37.61
37.61
53.04
38.93

4.3
4.6
4.6
4.2
2.7
4.4
4.6
4.4

67,91434,506
26,21031,546
6,285
4,222
1,179
171,864

36.31
51.89
73.49
94.92
119.35
195.79
57.62
51.78

-

-

-

-

-

-

-

558
5
38
0
601
¥18,770,412

1.75
3.73
14.32
100.00
2.66
0.08

0.9
0.0
0.0
0.0
1.0
9.8

25.81
24.57
19.01
39.86
25.39
37.60

／
／
／
／
181
／
1
／
13
／
0
／
197
／
4.3 ¥1,269,661

32.50
35.24
35.80
47.03
32.75
6.76

(E) CCR5: Composition of Collateral for CCR Exposure(Millions of yen)

As of March 31, 2023abcdCollateral used in derivative transactions
Fair value of collateral received Fair value of posted collateral

1
2
3
4
5
6
7
8
9

Cash – domestic currency
Cash – other currencies
Domestic sovereign debt
Other sovereign debt
Government agency debt
Corporate bonds
Equity securities
Other collateral
Total

e
f
Collateral used in SFTs

Fair value ofcollateral
Segregated Unsegregated Segregated Unsegregatedreceived¥4,784¥495,588¥59,179¥1,297,214¥5,531,882
697,171947,507643,622676,237
19,124,102
44,651
446,386
164,028
382,5133,059,219
563,164
158,230
576,469
60,3027,514,463
12
781
781
171,125－474
26,602386
1,172
1,322,845
655
339,934
178,7942,648,329－
17,477－－－－¥1,310,915¥2,415,031¥1,443,686¥2,597,016¥39,389,446

203

Risk Management of Counterparty Credit Risk、Quantitative Disclosure on Counterparty Credit Risk

Fair value of
postedcollateral¥3,851,531
9,829,580
6,835,251
14,573,241
36,5613,106,921
2,632,480
213,358¥41,078,925

1
2
3
4
5
6
7
8
9

Cash – domestic currency
Cash – other currencies
Domestic sovereign debt
Other sovereign debt
Government agency debt
Corporate bonds
Equity securities
Other collateral
Total

e
f
Collateral used in SFTs

Fair value ofcollateral
Segregated Unsegregated Segregated Unsegregatedreceived¥6,240¥695,229¥26,722¥1,383,312¥1,702,994
1,785,781
723,023
1,357,031
1,090,892
19,581,491
48,211
300,275
170,797
307,897
2,540,677
324,799
6,326
290,172
26,85010,120,775
795
795
218,030－－
922
16,2591,137
6,268
1,010,788
532
734,402190,297
2,442,850－
12,173－－－－¥2,166,487¥2,476,313¥1,845,862¥3,006,313 ¥37,629,781

Fair value of
postedcollateral¥3,486,394
11,806,293
2,117,423
17,464,681
44,082
1,621,788
2,164,943
200,271¥38,905,878

Mizuho’s value
creation process(Millions of yen)

As of March 31, 2022abcdCollateral used in derivative transactions
Fair value of collateral received Fair value of posted collateral

Executive messages /Features2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）(F) CCR6: Credit Derivatives Exposures¥2,807,446
8,139,561
368,520－－¥11,315,528¥2,419,988
7,844,865
1,172,962－－¥11,437,815

15,480(105,366)

139,676(22,246)(Millions of yen)

As of March 31, 2022aProtection bought
Notionals
Single-name credit default swaps
Index credit default swaps
Total return swaps
Credit options
Other credit derivatives
Total notionals
Fair values
7 Positive fair value (asset)
8 Negative fair value (liability)¥1,989,928
4,029,840
32,224－500¥6,052,493¥1,525,002
3,602,120
758,041－－¥5,885,164

9,556(108,448)

113,235(12,628)

Appendix

1
2
3
4
5
6

b
Protection sold

Governance for value
creation

Notionals
Single-name credit default swaps
Index credit default swaps
Total return swaps
Credit options
Other credit derivatives
Total notionals
Fair values
7 Positive fair value (asset)
8 Negative fair value (liability)
1
2
3
4
5
6

b
Protection sold

Data sectionaProtection bought

Business strategies forvalue creation(Millions of yen)

As of March 31, 2023

204

Risk Management of Counterparty Credit Risk、Quantitative Disclosure on Counterparty Credit Risk

2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(G) CCR7: RWA flow statements of CCR exposures under EPE method(Billions of yen)

No.
1
2
3
4
5
6
7
8
9

RWA
RWA as of March 31, 2021

Breakdown of changes during thisreporting period¥1,078.4(120.4)(13.6)
62.2
1.7¥1,008.3

Asset size
Credit quality of counterparties
Model updates (EPE only)
Methodology and policy (EPE only)
Acquisitions and disposals
Foreign currency fluctuations
Other

RWA as of March 31, 2022

(Billions of yen)

No.
1
2
3
4
5
6
7
8
9

RWA
RWA as of March 31, 2022

Breakdown of changes during thisreporting period¥1,008.3(103.7)(18.7)
49.5(0.1)¥935.1

Asset size
Credit quality of counterparties
Model updates (EPE only)
Methodology and policy (EPE only)
Acquisitions and disposals
Foreign currency fluctuations
Other

RWA as of March 31, 2023

(H) CCR8: Exposures to Central Counterparties(Millions of yen)

As of March 31, 2023
a
EAD (post-CRM)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

Exposures to QCCPs (total)
Exposures for trades at QCCPs (excluding initial margin and default fundcontributions); of which(i) OTC derivatives(ii) Exchange-traded derivatives(iii) Securities financing transactions(iv) Netting sets where cross-product netting has been approved
Segregated initial marginNon-segregated initial margin
Pre-funded default fund contributions
Unfunded default fund contributions
Exposures to non-QCCPs (total)
Exposures for trades at non-QCCPs (excluding initial margin and default fundcontributions); of which(i) OTC derivatives(ii) Exchange-traded derivatives(iii) Securities financing transactions(iv) Netting sets where cross-product netting has been approved
Segregated initial marginNon-segregated initial margin
Pre-funded default fund contributions
Unfunded default fund contributions

205

Risk Management of Counterparty Credit Risk、Quantitative Disclosure on Counterparty Credit Risk

／

b
RWA
¥276,222¥1,807,262¥18,577

303,892
390,059
1,113,310－
1,208,150
763,395
606,874
－
／

2,551
8,034
7,991
－
／
14,904
242,740
－
－

－

－

－
－
－
－
－
－
－
－

－
－
－
－
／
－
－
－

1
2
3
4
5
6
7
8
9
10
11
12

／
¥1,250,368¥16,049

309,791
415,192
525,384－
1,669,885
767,755446,381
－
／

2,483
9,035
4,530
－
／
14,215
153,481
－
－

－

－

－
－
－
－
－
－
－
－

－
－
－
－
／
－
－
－

Appendix

Data section

Governance for value
creation

13
14
15
16
17
18
19
20

Exposures to QCCPs (total)
Exposures for trades at QCCPs (excluding initial margin and default fundcontributions); of which(i) OTC derivatives(ii) Exchange-traded derivatives(iii) Securities financing transactions(iv) Netting sets where cross-product netting has been approved
Segregated initial marginNon-segregated initial margin
Pre-funded default fund contributions
Unfunded default fund contributions
Exposures to non-QCCPs (total)
Exposures for trades at non-QCCPs (excluding initial margin and default fundcontributions); of which(i) OTC derivatives(ii) Exchange-traded derivatives(iii) Securities financing transactions(iv) Netting sets where cross-product netting has been approved
Segregated initial marginNon-segregated initial margin
Pre-funded default fund contributions
Unfunded default fund contributionsb
RWA¥183,747

Mizuho’s value
creation processaEAD (post-CRM)

Business strategies forvalue creation(Millions of yen)

As of March 31, 2022

Executive messages /Features2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）206

Risk Management of Counterparty Credit Risk、Quantitative Disclosure on Counterparty Credit Risk

2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy■ Securitization Exposures
We classify transactions as securitization exposures based on two characteristics, “non-recourse” and“senior/subordinated structure,” pursuant to the definitions set forth in the FSA Notice No. 20, etc.; provided that thetransactions do not include those which fall within specialized lending exposure.
(1) Summary of Risk Management Regarding Securitization Exposures
Our role in securitization transactions
We are associated with securitization transactions from various purposes and positions through our banking book andtrading book.
(a) Securitization of our assets (“Securitization as originator”)
For the purposes of mitigating credit risk and credit concentration risk, controlling economic capital and responding to
the needs of our investors, etc., we engage in securitization transactions, the underlying assets of which include
mortgage loans and loans to our corporate customers. When conducting a securitization as an originator, we consider
such transactions from various aspects, including the effects of reduction of economic capital and improvement ofreturn on risk as well as the practical effects of risk transfers, and make a comprehensive judgment on the structure
and appropriateness of such transactions.
(b) Securitization program (ABCP/ABL) sponsor
As a means of supporting our customers in the securitization of their account receivables and notes receivables, etc.,
we retain securitization exposure by providing asset-backed loans (ABLs, which are on-balance-sheet transactions),
and providing asset-backed commercial paper (ABCP) backup lines (off-balance-sheet transactions), as sponsor to
special purpose companies (in the form of Cayman Islands Corporations, etc.). In such cases, in addition to gaining
firm understanding of the actual risk profile through due diligence from the viewpoint of investors, we assign internalratings and make evaluations by assessing such transactions and carefully managing the exposure together with otherdirect loan assets.
(c) Investment in alternative credit risk assets (“Securitization Transactions as an Investor”)
We hold securitization products, such as ABS, CMBS, RMBS, and CDO, and resecuritization products, the underlying
assets of which are mainly RMBS and CDO, etc., for the purpose of investing in alternative credit risk assets that are
different from conventional credit risk assets in order to diversify our investment portfolio. The Risk Management
Committee, etc. set limits on the amount of investment for Securitization Transactions as an Investor, and we maintaina stringent structure for management of such transactions. In addition, we implement stress tests based on scenarios
under the market liquidity depletion and sharp price declines.
In addition, we undertake various securitization program arrangements such as ABL, ABCP and trust schemes, etc., asa means of financing for our customers. We endeavor to understand the actual risk profile, including the underlying
assets, and to appropriately disclose the risks and terms of the program to the customers who invest in the product.
Furthermore, we actively act as servicer for securitization transactions, offer settlement account facilities (servicer cash
advance) and provide interest rate swaps to securitization conduits.
One of our affiliated entities, Mizuho Leasing Company, Ltd, holds securitization products in which we are involved asoriginators or sponsors.
The securitization conduits included within the scope of consolidation are as follows:ROCK FIELD CORPORATION, FANTASTIC FUNDING CORPORATION, N&M FUNDING CORPORATION, Denshi
Saiken Kaitori Godo Kaisha, JAPAN SECURITIZATION CORPORATION, Allstar Funding Co., Ltd, SPARCS FUNDINGCORPORATION, PERPETUAL FUNDING CORPORATION, and Working Capital Finance CO., Inc.
There are no securitization conduits that provide credit enhancement beyond what is provided in agreements.
Overview of risk profile of securitization transactions and monitoring system
In addition to price fluctuation and market liquidity risks, securitization and resecuritization products are exposed to risks
related to default, recovery and granularity of underlying asset portfolio. The structure of these products also contains
risks related to the originators, the administrators, trustees and managers of the underlying assets.
To address these risks, we also analyze the structure in terms of the underlying assets and credit events. We monitor theability, quality and operating performance of originators and managers in charge of controlling the underlying assets aswell as covenant information and credit status of the parties related to the program. In addition, for resecuritization
products, we pay attention to the underlying assets of the underlying securitization products. We also assign internalratings to all products and review the rating at least once a year. If there is a change in the credit situations, we will
review the internal rating as appropriate. As mentioned above, we have established a system to comprehensively
understand the risk characteristics of securitization exposures and manage these exposures.
We conduct credit risk measurements on all credit transactions, including securitization transactions. Furthermore, we

207

Summary of Securitization Exposure and Its Risk Management、Accounting Policies for Securitization Transactions、Quantitative Disclosure Items for Securitiza

(3) Quantitative Disclosure on Securitization Exposures(A) SEC1: Securitization Exposures in the Banking Book by Type of Underlying Assets(Millions of yen)

As of March 31, 2023
a
b
c
d
e
f
g
h
i
Bank acts as originator
Bank acts as sponsor
Banks acts as investor
type of underlying assets Traditional Synthetic Sub-total Traditional Synthetic Sub-total Traditional Synthetic Sub-total
1 Retail (total) - of which¥¥¥- ¥2,242,683¥- ¥2,242,683 ¥2,105,480¥- ¥2,105,480
2
residential mortgage
568,648568,6483
credit card
- 1,029,428- 1,029,428
91,222
91,2224other retail exposures- 1,213,254- 1,213,254 1,445,609- 1,445,609
5re-securitization
6 Wholesale (total) - of which
237,504
15,999253,503
212,469
212,469 1,845,464- 1,845,464
7loans to corporates
237,504
15,999253,503200
200
320,889
320,8898commercial mortgage
9lease and receivables
212,268
212,268 1,161,571- 1,161,571
10
other wholesale
363,002363,002
11
re-securitization-

Mizuho’s value
creation process
Business strategies forvalue creation(2) Accounting Policies for Securitization Transactions
The point at which financial assets and liabilities relating to securitization transactions begin or cease to be recognized,
their evaluation and accounting treatment are pursuant to "Accounting Standards Relating to Financial Products"(Business Accounting Standards No. 10).

Governance for value
creation

Response to Basel Framework
In calculating credit risk-weighted assets of securitization exposure, we apply the internal-ratings-based approach(“IRBA”) if we have sufficient information regarding all the underlying assets for IRBA. If IRBA cannot be applied to acertain asset and it has a rating obtained from an eligible external credit assessment institution, we apply the Externalrating-based approach (“ERBA”) We apply the standardized approach (“SA”) in other cases pursuant to the FSA NoticeNo. 20. We apply a risk weight of 1250% under Basel III when neither IRBA, ERBA nor SA can be applied.
In terms of securitization exposure in our trading book that is subject to market risk regulations, we adopt thestandardized measurement method and calculate market risk equivalent amounts in connection with the specific risks of
securitization products based on risk weights according to ratings assigned by eligible external credit assessment
institutions pursuant to the FSA Notice No. 20.
As for the eligible external credit assessment institutions, we refer to Rating and Investment Information, Inc. (R&I),
Japan Credit Rating Agency, Ltd. (JCR), Moody's Investors Service Inc. (Moody's), Standard & Poor's (S&P) and Fitch
Ratings, Ltd. in determining securitization exposure risk weight.

Data section

carry out periodic monitoring on investment amount and performance on securitization transactions and report thesituations to our Risk Management Committee, etc.

Executive messages /Features2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）(Millions of yen)

Appendix

As of March 31, 2022
a
b
c
d
e
f
g
h
i
Bank acts as originator
Bank acts as sponsor
Banks acts as investor
type of underlying assets Traditional Synthetic Sub-total Traditional Synthetic Sub-total Traditional Synthetic Sub-total
1 Retail (total) - of which¥¥¥- ¥1,687,542¥- ¥1,687,542 ¥1,626,852¥- ¥1,626,852
2
residential mortgage
505,965
505,965
3
credit card
826,182
826,182
67,33867,3384other retail exposures
861,360
861,360 1,053,549- 1,053,549
5re-securitization
6 Wholesale (total) - of which
150,517
57,684208,202
233,908
233,908 1,424,286- 1,424,286
7loans to corporates
150,517
57,684208,202309,437
309,437
8commercial mortgage
9lease and receivables
145,848
145,848
910,190
910,19010other wholesale
88,06088,060204,658
204,658
11
re-securitization-

208

Summary of Securitization Exposure and Its Risk Management、Accounting Policies for Securitization Transactions、Quantitative Disclosure Items for Securitiza

2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(B) SEC2: Securitization Exposures in the Trading Book by Type of Underlying Assets(Millions of yen)

As of March 31, 2023
a
b
c
d
e
f
g
h
i
Bank acts as originator
Bank acts as sponsor
Banks acts as investor
type of underlying assets Traditional Synthetic Sub-total Traditional Synthetic Sub-total Traditional Synthetic Sub-total
1 Retail (total) - of which¥¥¥¥¥¥- ¥13,624¥- ¥13,624
2
residential mortgage
12,212
12,2123
credit card4other retail exposures
1,412
1,412
5
re-securitization00
6 Wholesale (total) - of which
31,282
31,2827loans to corporates
31,282
31,2828commercial mortgage
9lease and receivables
10
other wholesale
11
re-securitization(Millions of yen)

As of March 31, 2022
a
b
c
d
e
f
g
h
i
Bank acts as originator
Bank acts as sponsor
Banks acts as investor
type of underlying assets Traditional Synthetic Sub-total Traditional Synthetic Sub-total Traditional Synthetic Sub-total
1 Retail (total) - of which¥¥¥¥¥¥¥9,937¥¥9,9372
residential mortgage
5,969
5,969
3
credit card4other retail exposures
3,073
3,073
5
re-securitization
893
893
6 Wholesale (total) - of which
13,00513,0057loans to corporates
13,00513,0058commercial mortgage
9lease and receivables
10
other wholesale
11
re-securitization-

209

Summary of Securitization Exposure and Its Risk Management、Accounting Policies for Securitization Transactions、Quantitative Disclosure Items for Securitiza

f

g

h

Of which
Of which
Total
Traditional
Of which
Of which
Of which Of which
retailreexposures securitization securitization underlying wholesale securitization senior non-senior
Exposure values (by RW bands)
1 ≤20% RW¥2,276,607 ¥2,261,865 ¥2,261,865 ¥1,822,823
2 >20% to 50% RW
315,260
315,260
315,260
308,128
3 >50% to 100% RW
58,30658,30658,30658,2214 >100% to <1250% RW
58,41857,161
57,16153,4475 1250% RW
62
62
62
62
Exposure values (by regulatory approach)
6 Internal Ratings-Based Approach (SEC-IRBA)
2,708,593 2,692,594 2,692,594 2,242,620
7 External Ratings-Based Approach (SEC-ERBA)
8 Standardised Approach (SEC-SA)
9 1250%6262
6262
RWA (by regulatory approach)
10 Internal Ratings-Based Approach (SEC-IRBA)
622,461
620,250
620,250
523,991
11 External Ratings-Based Approach (SEC-ERBA)
12 Standardised Approach (SEC-SA)
13 1250%
782
782
782
782
Capital charge after cap
14 Internal Ratings-Based Approach (SEC-IRBA)
49,796
49,62049,62041,91915 External Ratings-Based Approach (SEC-ERBA)
16 Standardised Approach (SEC-SA)
17 1250%
62
62
62
62

i

j

k

¥439,042
7,131
84
3,713
-

¥-

¥-

¥-

449,973----

96,258
-

-

-

-

7,700
-

-

-

-

As of March 31, 2023
l
m

n

o

Of which
Of which
Of which
Of which Of which
Synthetic Of which
retailresecuritization securitization underlying wholesale securitization senior non-senior
Exposure values (by RW bands)
1 ≤20% RW¥14,742
2 >20% to 50% RW
3 >50% to 100% RW
4 >100% to <1250% RW
1,257
5 1250% RW
Exposure values (by regulatory approach)
6 Internal Ratings-Based Approach (SEC-IRBA)
15,9997 External Ratings-Based Approach (SEC-ERBA)
8 Standardised Approach (SEC-SA)
9 1250%RWA (by regulatory approach)
10 Internal Ratings-Based Approach (SEC-IRBA)
2,211
11 External Ratings-Based Approach (SEC-ERBA)
12 Standardised Approach (SEC-SA)
13 1250%
Capital charge after cap
14 Internal Ratings-Based Approach (SEC-IRBA)
176
15 External Ratings-Based Approach (SEC-ERBA)
16 Standardised Approach (SEC-SA)
17 1250%-¥14,742
1,257
-

¥-

¥14,742
1,257
-

¥-

¥-

¥-

15,999--15,999
-

-

-

-

2,211
-

-

2,211
-

-

-

-

176
-

-

176
-

-

-

-

Mizuho’s value
creation processc

Business strategies forvalue creationb

Governance for value
creationaData section(Millions of yen)

As of March 31, 2023
de

Appendix(C) SEC3: Securitization Exposures in the Banking Book and Associated Regulatory Capital Requirements - Bank
Acting as Originator or as Sponsor

Executive messages /Features2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）210

Summary of Securitization Exposure and Its Risk Management、Accounting Policies for Securitization Transactions、Quantitative Disclosure Items for Securitiza

2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(Millions of yen)ab

As of March 31, 2022
d
e

c

f

g

h

Of which
Of which
Traditional
Of which
Of which
Of which Of which
Total
retailreexposures securitization securitization underlying wholesale securitization senior non-senior
Exposure values (by RW bands)
1 ≤20% RW¥1,783,508 ¥1,731,725 ¥1,731,725 ¥1,401,678
2 >20% to 50% RW
178,079
178,079
178,079
132,788
3 >50% to 100% RW
153,620
153,620
153,620
153,071
4 >100% to <1250% RW
14,4418,539
8,539
5 1250% RW33
3
3
Exposure values (by regulatory approach)
6 Internal Ratings-Based Approach (SEC-IRBA)
2,129,649 2,071,964 2,071,964 1,687,538
7 External Ratings-Based Approach (SEC-ERBA)
8 Standardised Approach (SEC-SA)
9 1250%33
3
3
RWA (by regulatory approach)
10 Internal Ratings-Based Approach (SEC-IRBA)
436,207427,426
427,426
324,543
11 External Ratings-Based Approach (SEC-ERBA)
12 Standardised Approach (SEC-SA)
13 1250%
48
48
48
48
Capital charge after cap
14 Internal Ratings-Based Approach (SEC-IRBA)
34,89634,19434,19425,96315 External Ratings-Based Approach (SEC-ERBA)
16 Standardised Approach (SEC-SA)
17 1250%
3
3
3
3

i

j

k

¥330,046
45,291
549
8,539
-

¥-

¥-

¥-

384,426----

102,882
-

-

-

-

8,230
-

-

-

-

As of March 31, 2022
l
m

n

o

Of which
Of which
Synthetic Of which
Of which
Of which Of which
retailresecuritization securitization underlying wholesale securitization senior non-senior
Exposure values (by RW bands)
1 ≤20% RW¥51,782
2 >20% to 50% RW
3 >50% to 100% RW
4 >100% to <1250% RW
5,902
5 1250% RW
Exposure values (by regulatory approach)
6 Internal Ratings-Based Approach (SEC-IRBA)
57,684
7 External Ratings-Based Approach (SEC-ERBA)
8 Standardised Approach (SEC-SA)
9 1250%RWA (by regulatory approach)
10 Internal Ratings-Based Approach (SEC-IRBA)
8,781
11 External Ratings-Based Approach (SEC-ERBA)
12 Standardised Approach (SEC-SA)
13 1250%
Capital charge after cap
14 Internal Ratings-Based Approach (SEC-IRBA)
702
15 External Ratings-Based Approach (SEC-ERBA)
16 Standardised Approach (SEC-SA)
17 1250%-¥51,782
5,902
-

¥-

¥51,782
5,902
-

¥-

¥-

¥-

57,684--

57,684
-

-

-

-

8,781
-

-

8,781
-

-

-

-

702
-

-

702
-

-

-

-

211

Summary of Securitization Exposure and Its Risk Management、Accounting Policies for Securitization Transactions、Quantitative Disclosure Items for Securitiza

f

g

h

Of which
Of which
Total
Traditional
Of which
Of which
Of which Of which
retailreexposures securitization securitization underlying wholesale securitization senior non-senior
Exposure values (by RW bands)
1 ≤20% RW¥3,349,690 ¥3,349,690 ¥3,349,690 ¥1,746,626 ¥1,603,063
2 >20% to 50% RW
428,506
428,506
428,506
232,181
196,324
3 >50% to 100% RW
162,245
162,245
162,245
126,672
35,573
4 >100% to <1250% RW
10,492
10,492
10,492
10,4925 1250% RW
10
10
10
10
Exposure values (by regulatory
approach)
6 Internal Ratings-Based Approach (SEC-IRBA)
3,063,437 3,063,437 3,063,437 1,538,147 1,525,290
7 External Ratings-Based Approach (SEC-ERBA)
886,134
886,134
886,134
567,333
318,801
8 Standardised Approach (SEC-SA)
1,362
1,362
1,362
1,362
9 1250%10101010RWA (by regulatory approach)
10 Internal Ratings-Based Approach (SEC-IRBA)
644,381644,381644,381334,317
310,063
11 External Ratings-Based Approach (SEC-ERBA)
153,953
153,953
153,953
61,132
92,82012 Standardised Approach (SEC-SA)
204
204
204
204
13 1250%
125
125
125
125
Capital charge after cap
14 Internal Ratings-Based Approach (SEC-IRBA)
51,55051,55051,55026,74524,805
15 External Ratings-Based Approach (SEC-ERBA)
12,316
12,316
12,3164,890
7,425
16 Standardised Approach (SEC-SA)
16
16
16
16
17 1250%
10
10
10
10

i

j

k

As of March 31, 2023
l
m

¥-

¥-

¥-

-

-

-

-

-

-

-

-

-

n

o

Of which
Of which
Synthetic Of which
Of which
Of which Of which
retailresecuritization securitization underlying wholesale securitization senior non-senior
Exposure values (by RW bands)
1 ≤20% RW
2 >20% to 50% RW
3 >50% to 100% RW
4 >100% to <1250% RW
5 1250% RW
Exposure values (by regulatory
approach)
6 Internal Ratings-Based Approach (SEC-IRBA)
7 External Ratings-Based Approach (SEC-ERBA)
8 Standardised Approach (SEC-SA)
9 1250%RWA (by regulatory approach)
10 Internal Ratings-Based Approach (SEC-IRBA)
11 External Ratings-Based Approach (SEC-ERBA)
12 Standardised Approach (SEC-SA)
13 1250%
Capital charge after cap
14 Internal Ratings-Based Approach (SEC-IRBA)
15 External Ratings-Based Approach (SEC-ERBA)
16 Standardised Approach (SEC-SA)
17 1250%

¥-

¥-

¥-

¥-

¥-

¥-

¥-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Mizuho’s value
creation processc

Business strategies forvalue creationb

Governance for value
creationaData section(Millions of yen)

As of March 31, 2023
de

Appendix(D) SEC4: Securitization Exposures in the Banking Book and Associated Regulatory Capital Requirements - Bank
Acting as Investor

Executive messages /Features2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）212

Summary of Securitization Exposure and Its Risk Management、Accounting Policies for Securitization Transactions、Quantitative Disclosure Items for Securitiza

2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(Millions of yen)ab

As of March 31, 2022
d
e

c

f

g

h

Of which
Of which
Of which
Of which
Of which Of which
Total
Traditional
retailreexposures securitization securitization underlying wholesale securitization senior non-senior
Exposure values (by RW bands)
1 ≤20% RW¥2,815,200 ¥2,815,200 ¥2,815,200 ¥1,482,727 ¥1,332,472
2 >20% to 50% RW
167,224
167,224
167,224
118,250
48,974
3 >50% to 100% RW
58,52258,52258,52225,87432,648
4 >100% to <1250% RW
10,181
10,181
10,181
10,1815 1250% RW
10
10
10
10
Exposure values (by regulatory
approach)
6 Internal Ratings-Based Approach (SEC-IRBA)
2,230,380 2,230,380 2,230,380 1,119,371 1,111,009
7 External Ratings-Based Approach (SEC-ERBA)
819,046
819,046
819,046
505,779
313,267
8 Standardised Approach (SEC-SA)
1,702
1,702
1,702
1,702
9 1250%10101010RWA (by regulatory approach)
10 Internal Ratings-Based Approach (SEC-IRBA)
387,203387,203387,203
193,234
193,969
11 External Ratings-Based Approach (SEC-ERBA)
148,600
148,600
148,600
56,312
92,28712 Standardised Approach (SEC-SA)
255
255
255
255
13 1250%
125
125
125
125
Capital charge after cap
14 Internal Ratings-Based Approach (SEC-IRBA)
30,97630,97630,976
15,45815,517
15 External Ratings-Based Approach (SEC-ERBA)
11,888
11,888
11,8884,505
7,383
16 Standardised Approach (SEC-SA)
20
20
20
20
17 1250%
10
10
10
10

i

j

k

As of March 31, 2022
l
m

¥-

¥-

¥-

-

-

-

-

-

-

-

-

-

n

o

Of which
Of which
Synthetic Of which
Of which
Of which Of which
retailresecuritization securitization underlying wholesale securitization senior non-senior
Exposure values (by RW bands)
1 ≤20% RW
2 >20% to 50% RW
3 >50% to 100% RW
4 >100% to <1250% RW
5 1250% RW
Exposure values (by regulatory
approach)
6 Internal Ratings-Based Approach (SEC-IRBA)
7 External Ratings-Based Approach (SEC-ERBA)
8 Standardised Approach (SEC-SA)
9 1250%RWA (by regulatory approach)
10 Internal Ratings-Based Approach (SEC-IRBA)
11 External Ratings-Based Approach (SEC-ERBA)
12 Standardised Approach (SEC-SA)
13 1250%
Capital charge after cap
14 Internal Ratings-Based Approach (SEC-IRBA)
15 External Ratings-Based Approach (SEC-ERBA)
16 Standardised Approach (SEC-SA)
17 1250%

¥-

¥-

¥-

¥-

¥-

¥-

¥-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

213

Summary of Securitization Exposure and Its Risk Management、Accounting Policies for Securitization Transactions、Quantitative Disclosure Items for Securitiza

(1) Trading Activities
In the calculation of the market risk equivalent amounts under the regulatory capital requirements, the risk arising fromfluctuations in common factors across the market as a whole (e.g. foreign exchange and interest rates, etc.) is referred toas general market risk, and the risk arising from a deterioration in creditworthiness or market liquidity inherent in bonds andstocks is referred to as specific risk. In principle, we calculate market risk equivalent amounts by determining both generalmarket risk and specific risk by applying the Internal Models Approach (IMA) to the former and the standardized approachto the latter, and by simply adding up both amounts. The Internal Models Approach is applied to trading transactions andcalculated by adding up VAR and stressed VAR.

No.
1
2
3
4
5
6
7
8
9

(Millions of yen)
As of March 31, 2023

As of March 31, 2022

RWA
(Risk equivalent / 8%)

RWA(Risk equivalent / 8%)

Interest rate risk (general and specific)
Equity risk (general and specific)
Foreign exchange risk
Commodity risk
Options
Simplified approach
Delta-plus method
Scenario approach
Securitization
Total¥537,664
262,976
17,176
14,868¥508,296
252,183
48,03049,537

3,447
192,675¥1,028,809

2,255
117,064¥977,368(B) MR2:RWA flow statements of market risk exposures under IMA(Billions of yen)No.
RWA as of March 31, 2022
Adjustment to RWA as of March 31, 2022
IMA values as of March 31, 2022
Change in risk levels
Model updates/changes
Breakdown of
Methodology and policychanges during
this reporting
Acquisitions and disposals
periodForeign currency fluctuations
Other
IMA values as of March 31, 2023
Adjustment to RWA as of March 31, 2023
RWA as of March 31, 2023

B

C

D

E

F

VAR

Stressed
VAR

IRC

CRM

Other

Total

¥467.52.56
182.3(164.7)(214.6)
468.4
271.3
2.49
676.6

¥912.92.55
356.7(130.3)(144.1)
260.9
343.1
2.79
959.0

¥-

¥-

／ ¥1,380.5
2.56
／
539.0
／
(295.0)／／／／(358.8)
／
729.3
／
614.4
／
2.66
／
1,635.6／

Appendix

1a
1b
1c
2
3
4
5
6
7
8a
8b
8c

A

Data section(A) MR1：Market risk under standardized approach

Business strategies forvalue creation

See pages 119 to 121 for information regarding our market risk management structure, etc.

Governance for value
creation■ Market Risk

Mizuho’s value
creation process

Executive messages /Features2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）214

Trading Activities、Banking Activities2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(Billions of yen)

No.
1a
1b
1c
2
3
4
5
6
7
8a
8b
8c

RWA as of March 31, 2021
Adjustment to RWA as of March 31, 2021
IMA values as of March 31, 2021
Change in risk levels
Model updates/changes
Breakdown of
Methodology
and policychanges during
this reporting
Acquisitions and disposals
periodForeign currency fluctuations
Other
IMA values as of March 31, 2022
Adjustment to RWA as of March 31, 2022
RWA as of March 31, 2022

A

B

C

D

E

F

VAR

Stressed
VAR

IRC

CRM

Other

Total

¥288.03.05
94.2(24.0)(79.0)(191.2)
182.3
2.56
467.5

¥880.43.02
290.5(52.7)(74.8)
193.7
356.7
2.55
912.9

¥-

¥-

(C) MR3：IMA values for trading portfolios
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17

(Millions of yen)
As of March 31, 2023

VAR (10 day 99%)
Maximum value
Average value
Minimum value
Period end
Stressed VAR (10 day 99%)
Maximum value
Average value
Minimum value
Period end
Incremental Risk Charge (99.9%)
Maximum value
Average value
Minimum value
Period end
Comprehensive Risk Capital Charge (99.9％)
Maximum value
Average value
Minimum value
Period end
Floor (standardized measurement method)／ ¥1,168.5
3.03
／
384.8
／
(76.8)／／／／(153.8)
／
384.9
／
539.0
／
2.56
／
1,380.5／

As of March 31, 2022

¥25,643
17,1049,303
21,704¥24,256
10,585
6,716
14,58735,08825,213
16,212
27,45459,964
20,336
12,28428,538----Notes: 1. The historical simulation method is used for the calculation of VAR and stressed VAR under the Internal Models Approach.
2. VAR is measured based on the observation period of 3 years (801 business days), a 99% confidence interval and a 1-day holding period. This 1-day VAR is scaled up to 10business day VAR using the square-root-of-time (√T) rule. We update historical data on a daily basis, in principle, and do not weight such data. When re-pricing instruments,
we use the full revaluation method, a sensitivity-based approach and the like. We consider change width or rate as market volatility of risk factors according to productattributes.
3. When measuring stressed VAR, the same measurement approach as VAR is used except for the observation period of 1 year (265 business days). As a stressed period, weselect a period which has an adequate length of time and is considered the most stressful under a certain set of criteria established based on the most recent portfolio.
4. When applying the internal model, we regularly verify the preconditions used for VAR measurement.

215

Trading Activities、Banking Activities

Executive messages /Features2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）(D) MR4：Back testing results of IMA
As of March 31, 2022

Mizuho’s value
creation process

As of March 31, 2023

(A) IRRBB1：Interest rate risk

(Millions of yen)
a

b
ΔEVE

No.
1
2
3
4
5
6
7

8

Parallel up
Parallel down
Steepener
Flattener
Short rate up
Short rate down
Maximum

Tier1 capital

c

d
ΔNII

As of March
31, 2023

As of March
31, 2022

As of March
31, 2023

As of March
31, 2022¥363,912
0
110,826
106,377
202,748
26,321
363,912¥622,1220228,046
59,514
251,479
17,108622,122¥(488,285)
702,418／／／／
702,418¥(381,094)
517,757／／／／
517,757ef

As of March 31, 2023

As of March 31, 2022

¥9,803,395

Governance for value
creation

To comply with Interest Rate Risk in the Banking Book (IRRBB) requirements, we are required to calculate expectedchanges in the economic value of equity (ΔEVE) arising from banking activities and expected changes in net interest
income (ΔNII) from the reference date until the date no later than 12 months from the reference date under interest rate
shock scenarios (i.e. parallel up and downwards shifts in the yield curve and the like). ΔEVE and ΔNII change according tochanges in the banking portfolio.

Data section(2) Banking Activities

Business strategies forvalue creation

Note: The number of cases where VAR on a particular day was exceeded by losses on the following business day for the past 250 business days was 0 as of March 31, 2023 (0 as ofMarch 31, 2022).

¥9,713,290

Appendix

Notes: 1. Decreased economic values and interest income are shown as positive values.
2. As for some of those current deposits and ordinary deposits whose interest rates are not changed at predetermined intervals and from which depositors can withdraw moneyas desired on demand, we measure the interest rate risk associated with such deposits by applying an appropriate method after recognizing them as core deposits. The
average repricing maturities are 0.8 years for yen deposits and 0.5 years for dollar deposits respectively. The longest repricing maturities are 10.0 years for yen deposits and
5.0 years for dollar deposits respectively. We measure interest rate risk associated with term deposits and loans in an appropriate manner by estimating their early
redemption rates based on their historical prepayment and cancellation data.
3. When aggregating the respective ΔEVE of multiple currencies, we use the internal model that estimates the correlations between the key currencies based on historical data.
When aggregating the respective ΔNII of multiple currencies, we simply add their respective ΔNII.
4. For the calculation of ΔEVE and ΔNII, we set an appropriate interest rate and spread according to a certain discount rate and reference rate.
5. When making the calculations above, we use regulatory defined preconditions including an interest rate shock scenario.

216

Trading Activities、Banking Activities2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy■ Investment or Equity Exposure(1) Summary of Risk Profile, Risk Management Policies/ Procedures and StructureWith regard to equities, we manage default risk through our credit risk management structure and price fluctuation risk
through our market risk management structure. With regard to subsidiaries and related companies in which we invest, wemanage their risks on a consolidated basis, and manage them appropriately in accordance with their managementclassification. In addition, securities, a part of equity exposure, are valued as follows: Securities are stated at market price(cost of securities sold is calculated primarily by the moving average method). Stocks and others without a quoted market
price are stated at acquisition cost and determined by the moving average method.

■ Operational risk
(1) Summary of Operational Risk Management and Procedures
See pages 123 to 124 for a summary of our operational risk management policies, etc.

(2) Approach Used for the Measurement of Operational Risk Equivalent
We use the Advanced Measurement Approach for the calculation of operational risk equivalent. See pages 124 to 126 forthe outline of the Advanced Measurement Approach. In the measurement of operational risk equivalent, we do notrecognize the risk mitigating impact of insurance. The following entities have adopted the Advanced Measurement
Approach as of March 31, 2023. In the measurement of operational risk equivalent, we do not recognize the risk mitigating
impact of insurance.
Mizuho Financial Group, Inc.; Mizuho Bank., Ltd., Mizuho Trust & Banking Co., Ltd.; Mizuho Securities; Mizuho Credit
Guarantee Co., Ltd.; Mizuho Business Service Co., Ltd.; Mizuho Trust Operations Co., Ltd.; Mizuho Trust Business
Operations Co., Ltd.; Mizuho Trust Retail Support Co., Ltd.; Mizuho Bank Europe N.V.; and Mizuho International plc.

217

Summary of Risk Profile, Risk Management Policies/ Procedures and Structure、Summary of Operational Risk Management and Procedures、Approach Used for the Mea

Mizuho’s value
creation process
Business strategies forvalue creation
Governance for value
creation
Data section(Millions of yen, except percentage)
Correspon Correspon
ding line # ding line #on Basel on Basel
As of March 31, As of March 31,
Item
III
III
2023
2022
disclosure disclosure
template
template(Table 2) (Table 1)
On-balance sheet exposures(1)
1
On-balance sheet exposures before deducting adjustment items¥166,753,759¥164,121,871
1a1Total assets reported in the consolidated balance sheet
202,281,158
198,455,311
The amount of assets of subsidiaries that are not included in
1b
2
the scope of the leverage ratio on a consolidated basis (-)
The amount of assets of subsidiaries that are included in the scope of1c7
the leverage ratio on a consolidated basis (except those included in
the total assets reported in the consolidated balance sheet)
The amount of assets that are deducted from the total assets reported in the
1d
335,527,399
34,333,440
consolidated balance sheet (except adjustment items) (-)
2
7
The amount of adjustment items pertaining to Tier1 capital (-)
1,079,022
1,083,075
3
Total on-balance sheet exposures(a) ¥165,674,736¥163,038,795
Exposures related to derivative transactions(2)
4
RC multiplied by 1.4 associated with derivatives transactions, etc.
Replacement cost associated with derivatives transactions, etc.
3,144,682
3,723,706
5
PFE multiplied by 1.4 associated with derivatives transactions, etc.
Add-on amount associated with derivatives transactions, etc.
11,713,117
10,104,140
The amount of receivables arising from providing cash margin
1,051,886
1,885,254
in relation to derivatives transactions, etc.
The amount of receivables arising from providing collateral,
6
provided where deducted from the consolidated balance sheet
pursuant to the operative accounting framework
The amount of receivables arising from providing cash margin,
158,919
144,143
provided where deducted from the consolidated balance sheet
pursuant to the operative accounting framework
The amount of deductions of receivables (out of those arising7
from providing cash variation margin) (-)
The amount of client-cleared trade exposures for which a bank8
holding company acting as a clearing member is not obliged to／／make any indemnification (-)
9Adjusted effective notional amount of written credit derivatives
10,323,616
5,225,478
The amount of deductions from effective notional amount of
10
9,986,163
4,880,742
written credit derivatives (-)
11
4
Total exposures related to derivative transactions(b)¥16,406,058¥16,201,981
Exposures related to repo transactions(3)
12
The amount of assets related to repo transactions, etc.
13,590,848
15,090,453
13
The amount of deductions from the assets above (line 12) (-)
3,689,303
5,119,912
The exposures for counterparty credit risk for repo
14
1,075,699
624,315transactions, etc.
15
The exposures for agent repo transactions／／
16
5
Total exposures related to repo transactions, etc.
(c)
¥10,977,214¥10,594,856
Exposures related to off-balance sheet transactions(4)
17
Notional amount of off-balance sheet transactions
56,452,814
51,267,489
The amount of adjustments for conversion in relation to off18
30,069,707
28,131,119
balance sheet transactions (-)
19
6
Total exposures related to off-balance sheet transactions(d)¥26,383,107¥23,136,369

Appendix■Composition of Leverage Ratio

Executive messages /Features2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）218

Composition of Leverage Ratio

2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

Correspon Correspon
ding line # ding line #on Basel on Basel
Item
III
III
disclosure disclosure
template
template(Table 2) (Table 1)
Leverage ratio on a consolidated basis
20
The amount of capital (Tier1 capital)
21
8
Total exposures ((a)+(b)+(c)+(d))
22Leverage ratio on a consolidated basis ((e)/(f))
National minimum leverage ratio requirement
Applicable leverage buffers
Leverage ratio on a consolidated basis (excluding the impact of any applicable
temporary exemption of deposits with the Bank of Japan)
Total exposures (f)The amount of deposits with the Bank of Japan
Total exposures (excluding the impact of any applicable
temporary exemption of deposits with the Bank of Japan) (f’)
Leverage ratio on a consolidated basis (excluding the impactof any applicable temporary exemption of deposits with the
Bank of Japan) ((e)/(f’))

As of March 31, As of March 31,
2023
2022

(5)
(e)
(f)

9,803,395¥219,441,166
4.46%
3.00%
0.05%

9,713,290¥212,972,004
4.56%
／
／

¥219,441,116
51,977,044¥212,972,004
38,610,831¥271,418,161¥251,582,835

3.61%

3.86%

(6)

Note: As an external audit of calculating the leverage ratio on a consolidated basis, we underwent an examination under the procedures agreed with by Ernst& Young ShinNihon LLC, on the basis of "Practical guidance on agreed-upon procedures for the calculation of capital adequacy ratio and leverage
ratio" (Practical Guideline for specialized fields No. 4465 of the Japanese Institute of Certified Public Accountants). Note that this examination is not apart of the audit performed on our consolidated financial statements or internal controls over financial reporting. Ernst & Young ShinNihon LLC does
not give its opinion or conclusion concerning the leverage ratio or our internal control structure regarding the calculation of the leverage ratio. Instead, it
performs an examination to the extent both of us agreed to and reports the results to us.

219

Composition of Leverage Ratio

■ TLAC Regulations(1) TLAC1: TLAC composition for G-SIBs (at resolution group level)

4,334,870

／

／

／
／
2,465,195／／
2,265,565

7,961,936

6,600,436

19,438,645

17,972,039--

12,53919,426,106

6,284
17,965,755

70,434,154
219,441,116

64,730,439
212,972,004

27.58%

27.75%

24.02%
8.85%
7.30%
3.56%
2.50%
0.06%
1.00%

24.24%
8.43%
7.96%
3.51%
2.50%
0.01%
1.00%

Business strategies forvalue creation

5,496,741

Governance for value
creation¥8,067,279
1,646,011
20,607
1,625,404
1,638,391(121,630)
73,064
8,038
1,678,919
11,371,603

Data section¥8,315,525
1,487,870
16,387
1,471,482
1,503,569(229,337)
39,6893,516
1,689,701
11,476,709

Appendix

Basel III
Items
Template
No.
Preferred resolution strategy(1)
The SPE (Single Point of Entry) resolution strategy is considered to be the preferred resolution
strategy for Mizuho Financial Group, Inc. (MHFG) and its subsidiaries.
More concretely, at the time of a stress, following the relevant authority's determination that one
or more of the material sub-groups, i.e. Mizuho Bank, Ltd., Mizuho Trust & Banking Co., Ltd. andMizuho Securities Co., Ltd. have reached the point of non-viability, losses incurred to them would
be passed to MHFG, the ultimate holding company. While this could lead to a resolution of
MHFG, the material sub-groups are expected to continue their business as usual under theSpecified Bridge Financial Institution, etc. incorporated by the Deposit Insurance Corporation ofJapan (DICJ) to which MHFG transfers its business.
Regulatory capital elements of TLAC and adjustments(2)
1
Common Equity Tier 1 capital (CET1)(A)
2
Additional Tier 1 capital (AT1) before TLAC adjustments(B)
3
AT1 ineligible as TLAC as issued out of subsidiaries to third parties (C)4
Other adjustments(D)
5
AT1 instruments eligible under the TLAC framework ((B)-(C)-(D))(E)
6Tier 2 capital (T2) before TLAC adjustments(F)
7
Amortised portion of T2 instruments where remaining maturity > 1 year (G)8T2 capital ineligible as TLAC as issued out of subsidiaries to third parties(H)
9
Other adjustments(I)
10
T2 instruments eligible under the TLAC framework ((F)-(G)-(H)-(I))(J)
11
TLAC arising from regulatory capital ((A) + (E) + (J))(K)
Non-regulatory capital elements of TLAC
(3)
External TLAC instruments issued directly by the bank and(L)12subordinated to excluded liabilities
External TLAC instruments issued directly by the bank which are not subordinated13
to excluded liabilities but meet all other TLAC term sheet requirements
14of which: amount eligible as TLAC after application of the caps
15
External TLAC instruments issued by funding vehicles prior to 1 January 2022
16
Eligible ex ante commitments to recapitalise a G-SIB in resolution(M)
TLAC arising from non-regulatory capital instruments before(N)
17
adjustments ((L) + (M))
Non-regulatory capital elements of TLAC: adjustments(4)
18
TLAC before deductions ((K) + (N))(O)
Deductions of exposures between MPE resolution groups that(P)
19
correspond to items eligible for TLAC (not applicable to SPE G-SIBs)
20
Deduction of investments in own other TLAC liabilities(Q)
21
Other adjustments to TLAC
(R)
22
TLAC after deductions ((O)-(P)-(Q)-(R))(S)
Risk-weighted assets and leverage exposure measure for TLAC purposes(5)
23
Total RWA
(T)
24
Leverage ratio exposure measure(U)
TLAC ratios and buffers(6)
TLAC before deduction of CET1 specific buffer requirement (as a25percentage of RWA) ((S)/(T))
25a
TLAC as a percentage of RWA
26
TLAC as a percentage of leverage ratio exposure measure ((S)/(U))
27
CET1 available after meeting the bank's minimum capital requirements
28
Total of bank CET1 specific buffer requirements
29of which: capital conservation buffer requirement30
of which: countercyclical buffer requirement31of which: bank G-SIB/D-SIB additional requirements

Mizuho’s value
creation process(Millions of yen, except percentage)ab
As of March 31, As of March 31,
2023
2022

Executive messages /Features2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）220

TLAC Regulations

2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(Millions of yen, except percentage)ab
Basel III
Items
Template
As of March 31, As of March 31,
No.
2023
2022
TLAC as a percentage of leverage ratio exposure measure (excluding the impact (7)of any applicable temporary exemption of deposits with the Bank of Japan)
Leverage ratio exposure measure(U)¥219,441,116¥212,972,004
The amount of deposits with the Bank of Japan
51,977,044
38,610,831
Leverage ratio exposure measure (excluding the impact of any(U')
271,418,161
251,582,835
applicable temporary exemption of deposits with the Bank of Japan)
TLAC as a percentage of leverage ratio exposure measure (excluding the
7.15%
7.14%
impact of any applicable temporary exemption of deposits with the Bankof Japan) ((S)/(U'))

221

TLAC Regulations

Items1

Is the resolution entity the creditor/investor?

2

Description of creditor ranking

3
4
5
6
7
8
9

Total capital and liabilities net of credit risk mitigation (A)Subset of row 3 that are excluded liabilities (B)Total capital and liabilities less excluded liabilities ((A) -(B) )Subset of row 5 that are eligible as TLAC
Subset of row 6 with 1 year ≤ residual maturity < 2 years
Subset of row 6 with 2 years ≤ residual maturity < 5 years
Subset of row 6 with 5 years ≤ residual maturity < 10 years
Subset of row 6 with 10 years ≤ residual maturity,but
excluding perpetual securities
Subset of row 6 that is perpetual securities

10
11

1
most junior✓Commonequity3,663,453
3,663,453
3,663,453-

1,676,832
1,676,832
1,493,217
482,807965,410-4
most senior✓
Other internal
TLAC eligible
instruments
4,806,149
4,806,149
4,334,870
439,183
1,879,230
1,760,867
-

2

3

✓
Additional Tier 1
capitalinstruments- 1,643,000- 1,643,000- 1,643,000--✓

Tier 2 capital
instruments

Sum of
1 to 4

11,789,435
11,789,435
11,134,541
439,183
2,362,037
2,726,277

-

-

-

-

45,000-255,590-

300,590

3,663,453-

1,643,000

-

-

-

-

-

5,306,453(Millions of yen)Mizuho Bank (Non-consolidated)
As of March 31, 2023
Creditor ranking
Basel III
Template

Items

1

Is the resolution entity the creditor/investor?

2

Description of creditor ranking

3
4
5
6
7
8
9

Total capital and liabilities net of credit risk mitigation (A)Subset of row 3 that are excluded liabilities (B)Total capital and liabilities less excluded liabilities ((A) -(B) )Subset of row 5 that are eligible as TLAC
Subset of row 6 with 1 year ≤ residual maturity < 2 years
Subset of row 6 with 2 years ≤ residual maturity < 5 years
Subset of row 6 with 5 years ≤ residual maturity < 10 years
Subset of row 6 with 10 years ≤ residual maturity,but
excluding perpetual securities
Subset of row 6 that is perpetual securities

10

Commonequity3,663,453
3,663,453
3,663,453-

1,785,505
1,785,505
1,585,195
105,000
436,155
1,019,040-

4
most senior✓
Other internal
TLAC eligible
instruments
5,698,529
5,698,529
5,496,741
996,157
1,953,695
2,100,682
-

2

3

✓
Additional Tier 1
capitalinstruments- 1,485,000- 1,485,000- 1,485,000--✓

Tier 2 capital
instruments

Sum of
1 to 4

12,632,488
12,632,488
12,230,389
1,101,157
2,389,850
3,119,722

-

-

-

-

25,000-446,207-471,2073,663,453-

1,485,000

-

-

-

-

-

5,148,453

Appendix11

1
most junior✓-Mizuho’s value
creation process

Basel III
Template

Business strategies forvalue creation

As of March 31, 2022
Creditor ranking

Governance for value
creation(Millions of yen)Mizuho Bank (Non-consolidated)

Data section(2) TLAC2:Material subgroup entity – creditor ranking at legal entity level

Executive messages /Features2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）222

TLAC Regulations

2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(Millions of yen)Mizuho Trust & Banking (Non-consolidated)
As of March 31, 2022
Creditor ranking
Basel III
Template1
most junior

Items

1

Is the resolution entity the creditor/investor?

✓

2

Description of creditor ranking

Common equity

3
4
5
6
7
8
9

Total capital and liabilities net of credit risk mitigation (A)Subset of row 3 that are excluded liabilities (B)Total capital and liabilities less excluded liabilities ((A) -(B) )Subset of row 5 that are eligible as TLAC
Subset of row 6 with 1 year ≤ residual maturity < 2 years
Subset of row 6 with 2 years ≤ residual maturity < 5 years
Subset of row 6 with 5 years ≤ residual maturity < 10 years
Subset of row 6 with 10 years ≤ residual maturity , but
excluding perpetual securities
Subset of row 6 that is perpetual securities

262,874
262,874
262,874----

262,874-

10
11

Sum of
1 to 22
most senior-✓
Other internal TLAC eligible
instruments--

262,874
262,874
262,874
-

-

-

-

-

-

262,874(Millions of yen)Mizuho Trust & Banking (Non-consolidated)
As of March 31, 2023
Creditor ranking
Basel III
Template

Is the resolution entity the creditor/investor?

✓

2

Description of creditor ranking

Common equity

3
4
5
6
7
8
9

Total capital and liabilities net of credit risk mitigation (A)Subset of row 3 that are excluded liabilities (B)Total capital and liabilities less excluded liabilities ((A) -(B) )Subset of row 5 that are eligible as TLAC
Subset of row 6 with 1 year ≤ residual maturity < 2 years
Subset of row 6 with 2 years ≤ residual maturity < 5 years
Subset of row 6 with 5 years ≤ residual maturity < 10 years
Subset of row 6 with 10 years ≤ residual maturity , but
excluding perpetual securities
Subset of row 6 that is perpetual securities

262,874
262,874
262,874----

262,874-

11

TLAC Regulations

Items

Sum of
1 to 22
most senior

1

10

223

1
most junior-✓
Other internal TLAC eligible
instruments--

262,874
262,874
262,874
-

-

-

-

-

-

262,874

Items1
most junior✓-32
most senior✓✓Long-term subordinated
Other internal TLAC
debt/Short-term subordinated debt
instruments
399,000 90,000
399,000 90,000
399,000
180.000
219,000-

Sum of
1 to 31

Is the resolution entity the creditor/investor?

2

Description of creditor ranking

Common equity

3
4
5
6
7
8
9

Total capital and liabilities net of credit risk mitigation (A)Subset of row 3 that are excluded liabilities (B)Total capital and liabilities less excluded liabilities ((A) -(B) )Subset of row 5 that are eligible as TLAC
Subset of row 6 with 1 year ≤ residual maturity < 2 years
Subset of row 6 with 2 years ≤ residual maturity < 5 years
Subset of row 6 with 5 years ≤ residual maturity < 10 years
Subset of row 6 with 10 years ≤ residual maturity, but
excluding perpetual securities
Subset of row 6 that is perpetual securities

454,107454,107454,107-52,70852,70852,708
-

-

-

-

-

-

-

-

454,10752,708----506,81610
11995,816
995,816
905,816
180,000
219,000(Millions of yen)Mizuho Securities (Non-consolidated)
As of March 31, 2023
Creditor ranking
Basel III
Template

Items

1most junior✓-

Sum of
1 to 33
2
most senior✓✓Long-term subordinated
Other internal TLAC
debt/Short-term subordinated debt
instruments
444,000 90,000- 1,066,238
444,000 90,000- 1,066,238
444,000
976,238
270,000
270,000
174,000
174,000

1

Is the resolution entity the creditor/investor?

2

Description of creditor ranking

Common equity

3
4
5
6
7
8
9

Total capital and liabilities net of credit risk mitigation (A)Subset of row 3 that are excluded liabilities (B)Total capital and liabilities less excluded liabilities ((A) -(B) )Subset of row 5 that are eligible as TLAC
Subset of row 6 with 1 year ≤ residual maturity < 2 years
Subset of row 6 with 2 years ≤ residual maturity < 5 years
Subset of row 6 with 5 years ≤ residual maturity < 10 years
Subset of row 6 with 10 years ≤ residual maturity, but
excluding perpetual securities
Subset of row 6 that is perpetual securities

532,238
532,238
532,238
-

-

-

-

-

-

-

-

-

532,238

-

-

-

-

-

532,238

10

Appendix

Data section

11

Mizuho’s value
creation process

Basel III
Template

Business strategies forvalue creation

As of March 31, 2022
Creditor ranking

Governance for value
creation(Millions of yen)Mizuho Securities (Non-consolidated)

Executive messages /Features2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）224

TLAC Regulations

2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(3) TLAC3:Resolution entity – creditor ranking at legal entity level(Millions of yen)Mizuho Financial Group (Non-Consolidated)
As of March 31, 2022
Creditor ranking
Basel III
Template

Items

1

Description of creditor ranking

2
3
4
5
6
7
8

Total capital and liabilities net of credit risk mitigation (A)Subset of row 2 that are excluded liabilities (B)Total capital and liabilities less excluded liabilities ((A) - (B))
Subset of row 4 that are eligible as TLAC
Subset of row 5 with 1 year ≤ residual maturity < 2 years
Subset of row 5 with 2 years ≤ residual maturity < 5 years
Subset of row 5 with 5 years ≤ residual maturity < 10 years
Subset of row 5 with 10 years ≤ residual maturity,but
excluding perpetual securities
Subset of row 5 that is perpetual securities

9
10

1
2
most juniorCommonAdditional Tier 1
equitycapital instruments
3,453,427
1,643,000
3,453,427
1,643,000
3,453,427
1,643,000-

3Tier 2 capital
instruments
1,676,832
1,676,832
1,493,217
482,807965,410

Sum of 1 to 44
most senior
Unsecuredsenior debts
4,811,993 11,585,253
5,844
5,844
4,806,149 11,579,408
4,334,870 10,924,515
439,183
439,183
1,879,230
2,362,037
1,760,867
2,726,277--

45,000255,590

300,590

3,453,427

1,643,000--

5,096,427*1 :Internal transactions are excluded from unsecured senior debts*2 :Excluded liabilities are recognized on a conservative basis in consideration of the materiality of the amounts(Millions of yen)Mizuho Financial Group (Non-Consolidated)
As of March 31, 2023
Creditor ranking
Basel III
Template

Items

1

Description of creditor ranking

2
3
4
5
6
7
8

Total capital and liabilities net of credit risk mitigation (A)Subset of row 2 that are excluded liabilities (B)Total capital and liabilities less excluded liabilities ((A) - (B))
Subset of row 4 that are eligible as TLAC
Subset of row 5 with 1 year ≤ residual maturity < 2 years
Subset of row 5 with 2 years ≤ residual maturity < 5 years
Subset of row 5 with 5 years ≤ residual maturity < 10 years
Subset of row 5 with 10 years ≤ residual maturity,but
excluding perpetual securities
Subset of row 5 that is perpetual securities

9
10

1
2
most juniorCommonAdditional Tier 1
equitycapital instruments
3,453,427
1,485,000
3,453,427
1,485,000
3,453,427
1,485,000-

3Tier 2 capital
instruments
1,785,505
1,785,505
1,585,195
105,000
436,155
1,019,040--

25,000446,207471,2073,453,427

1,485,000--

4,938,427*1 :Internal transactions are excluded from unsecured senior debts*2 :Excluded liabilities are recognized on a conservative basis in consideration of the materiality of the amounts

225

TLAC Regulations

Sum of 1 to 44
most senior
Unsecuredsenior debts
5,706,109 12,430,041
7,579
7,579
5,698,529 12,422,461
5,496,741 12,020,363
996,157
1,101,157
1,953,695
2,389,850
2,100,682
3,119,722

Notes: Credit risk-weighted assets used in the computation of the countercyclical buffer of each country or region are calculated based on wherecounterparties are located.
Some equity exposures, regarded-method exposures, securitization exposures and standardized approach portion which are difficult to calculate basedon the locations of counterparties, are calculated based on the country or region in which the reporting office is located.

(Millions of yen, except percentage)
As of March 31, 2022a
GeographicalbreakdownCountercyclical buffer
rate

Hong Kong SAR
Luxembourg
Subtotal
Total

1.00%
0.50%
／
／

b
Risk-weighted assets
used in the computationof the countercyclicalbuffer
578,464
256,389
834,854
51,775,197cdCountercyclical buffer
requirements

Countercyclical buffer
amount

／
／
／
0.01%

／
／
／
6,473

Notes: Credit risk-weighted assets used in the computation of the countercyclical buffer of each country or region are calculated based on wherecounterparties are located.
Some equity exposures, regarded-method exposures, securitization exposures and standardized approach portion which are difficult to calculate basedon the locations of counterparties, are calculated based on the country or region in which the reporting office is located.

Mizuho’s value
creation process
Business strategies forvalue creation(1) CCyB1: Geographical distribution of credit exposures used in the countercyclical buffer(Millions of yen, except percentage)
As of March 31, 2023
abcd
Risk-weighted assets
GeographicalCountercyclical buffer used in the computation Countercyclical buffer Countercyclical buffer
breakdown
rate
requirements
amountof the countercyclicalbufferAustralia
1.00%
734,263／／
Germany
0.75%
378,367／／
Hong Kong SAR
1.00%
530,286／／
Luxembourg
0.50%
362,665／／
Sweden
1.00%
77,637／／
United Kingdom
1.00%
1,649,423／／
Subtotal
3,732,644
／
／
／
Total
56,564,949
0.06%
42,260／Governance for value
creation■ Geographical Distribution of Credit Exposures Used in the Countercyclical Buffer

Executive messages /Features2023/11/13 9:19:11 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Data section■Indicators for Assessing Global Systemically Important Banks (G-SIBs)(1) GSIB1:Disclosure of G-SIB indicators

1
2
3
4
5
6
7
8
9
10
11
12
13

Cross-jurisdictional
activity
SizeInterconnectedness

Substitutability /Financial institution
infrastructure

Complexity

Individual indicator
Cross-jurisdictional claims
Cross-jurisdictional liabilities
Total exposures
Intra-financial system assets
Intra-financial system liabilities
Securities outstanding
Assets under custody
Payment activity
Underwritten transactions in debt and equity markets
Trading Volume
Notional amount of over-the-counter derivatives
Level 3 assets
Trading and available for sale securities

AppendixCategory(Millions of yen)
As of March 31, As of March 31,
2023
2022
75,553,860
64,930,927
58,777,726
49,145,555
272,497,184
252,665,910
17,766,338
16,725,890
20,555,882
18,730,071
32,178,060
33,867,668
99,167,933
109,934,549
7,846,267,374 5,867,823,821
17,396,622
17,220,101
869,498,886
787,039,330
2,073,565,642 1,644,372,374
601,213685,929
11,079,594
10,666,922

226

Geographical Distribution of Credit Exposures Used in the Countercyclical Buffer、Indicators for assessing Global Systemically Important Banks(G-SIBs)

2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Basel Regulatory Disclosures

Status of Sound Management of Liquidity Risk

The information disclosed herein is in accordance with "Matters Separately Prescribed by the Commissioner of the Financial
Services Agency Regarding Status of Sound Management of Liquidity Risk, etc. pursuant to Article 19-2, Paragraph 1, Item 5,
Sub-item (e), and other related provisions of the Regulation for Enforcement of the Banking Act" (the FSA Notice No. 7 of 2015).

■ Liquidity Coverage Ratio(1) Disclosure of quantitative information regarding the Liquidity Coverage Ratio (Consolidated)(Millions of yen, %, the number of data)
Item

For the three months ended March 31, 2023

High-Quality Liquid Assets
1

Cash Outflows
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

22
23
24

(3)

Cash inflows related to secured lending, etc.
Cash inflows related to collections of loans, etc.
Other cash inflows
Total cash inflows

Consolidated liquidity coverage ratio
21(2)Cash outflows related to unsecured retail fundingof which, Stable depositsof which, Less stable deposits
Cash outflows related to unsecured wholesalefundingof which, Qualifying operational depositsof which, Cash outflows related to unsecured
wholesale funding other than qualifying
operational deposits and debt securitiesof which, Debt securities
Cash outflows related to secured funding, etc.
Cash outflows related to derivative transactions,etc. funding programs, credit and liquidity facilitiesof which, Cash outflows related to derivativetransactions, etc.
of which, Cash outflows related to funding
programsof which, Cash outflows related to credit andliquidity facilities
Cash outflows related to contractual funding
obligations, etc.
Cash outflows related to contingencies
Total cash outflows

Cash Inflows
17
18
19
20

(1)

Total high-quality liquid assets (HQLA)

227

Liquidity Coverage Ratio//¥77,599,942¥77,561,476

TOTAL UNWEIGHTEDVALUETOTAL WEIGHTEDVALUETOTAL UNWEIGHTEDVALUETOTAL WEIGHTED
VALUE

51,918,288
16,908,718
35,009,570

4,010,561
507,261
3,503,299

51,834,457
16,803.402
35,031,054

4,009,652
504,1023,505,550

95,458,462

54,831,620

95,596,134

56,806,382

-

-

-

-

85,791,078

45,164,237

84,397,181

45,607,429

9,667,383/

9,667,383
2,121,814

11,198,953/

11,198,953
2,102,484

39,514,895

12,871,076

40,505,186

13,121,258

3,863,852

3,863,852

4,021,398

4,021,398

34,08634,08628,28228,28235,616,956

8,973,137

36,455,505

9,071,577

6,947,838

1,827,116

8,158,705

1,948,030

81,997,107/

717,251
76,379,441

83,244,351/

737,346
78,725,154

TOTAL UNWEIGHTEDVALUETOTAL WEIGHTEDVALUETOTAL UNWEIGHTEDVALUETOTAL WEIGHTED
VALUE

15,668,424
17,127,272
11,155,879
43,951,576

1,409,791
13,022,937
2,527,270
16,960,000

15,088,371
15,138,488
12,945,355
43,172,215

1,488,056
11,283,843
2,767,238
15,539,139(4)

Total HQLA allowed to be included in thecalculation
Net cash outflows
Consolidated liquidity coverage ratio (LCR)
The number of data used to calculate the averagevalue

For the three months ended December 31, 2022

/

/

/

77,599,942/

77,561,476//¥59,419,441
130.6%//¥63,186,015
122.9%

60

62

(D) Other matters regarding the Liquidity Coverage Ratio (Consolidated)
We do not apply the "exceptional treatment regarding qualifying operational deposits" in Article 28 of the Notice No. 62 and"the amount of additional collateral required due to market valuation changes to derivatives transactions estimated by the
scenario approach" in Article 37 of the Notice No. 62. "Cash outflows from other contracts" in Article 59 of the Notice No. 62
includes "cash outflows related to small consolidated subsidiaries." There are no material items that require detailed
explanation of "cash outflows from other contingent events" in Article 52 of the Notice No. 62 and "cash inflows from othercontracts" in Article 72 of the Notice No. 62. Monthly or quarterly data is used for some of our consolidated subsidiaries.

■ Net Stable Funding Ratio(1) Disclosure of quantitative information regarding the Net Stable Funding Ratio (Consolidated)

Item

As of March 31, 2023
Unweighted value by residual maturity
No maturity < 6 months 6 months to <1yr
≥1yr

(Millions of yen, %)As of December 31,2022
Unweighted value by residual maturity
Weightedvalue
No maturity < 6 months 6 months to <1yr
≥1yr

Weighted
value

Available stable funding (ASF) items (1)
1

2

3
4
5
6
7
8
9
10
11
12
13
14

Capital; of which:Common Equity Tier 1 capital,
Additional Tier 1 capital and Tier 2
capital (excluding the proportion ofTier 2 instruments with residual
maturity of less than one year)
before the application of capital
deductions
Other capital instruments that are
not included in the above category
Funding from retail and small
business customers; of which:Stable deposits
Less stable deposits
Wholesale funding; of which:Operational deposits
Other wholesale funding
Liabilities with matchinginterdependent assets
Other liabilities; of which:
Derivative liabilities
All other liabilities and equity notincluded in the above categories
Total available stable funding¥9,153,027¥0¥0¥3,109,884 ¥12,262,911 ¥9,118,093¥0¥0¥3,267,775 ¥12,385,868

9,153,027002,880,496

12,033,523

9,118,093

002,915,290

12,033,384

0

0

0

229,387

229,387000352,484

352,484

51,842,735

33,695050,94347,584,795 52,545,506

2,649

31,08350,68948,235,137

16,901,260
034,941,475
33,69568,826,656 69,139,837
68,826,656 69,139,837

00
5,056,678
5,056,678

050,943
11,180,269
11,180,269

16,056,197
31,528,597
52,536,551
52,536,551

17,262,635
035,282,871
2,649
57,980,858 74,027,036
57,980,858 74,027,036

0
31,083
4,747,152
4,747,152

050,6898,281,627
8,281,627

16,399,503
31,835,633
48,912,725
48,912,725

-

-

-

-

-

-

-

-

-

-

7,310,668/

3,973,458/

0/68,1100

113,529/

8,573,991/

2,873,841/

0/86,2600

113,033/

7,310,668

3,973,458

068,110113,529

8,573,991

2,873,841

086,260113,033//// 112,497,787

/

/

/

Business strategies forvalue creation(C) Composition of the total HQLA allowed to be included in the calculation
There are no significant changes in the composition, such as by currency or type, and geographic distribution of the HQLA
allowed to be included in the calculation. In addition, there is no significant currency mismatch between the total amount of
the HQLA allowed to be included in the calculation and net cash outflow regarding main currencies (those currencies ofwhich the aggregate liabilities denominated amount to 5% or more of our total liabilities).

Governance for value
creation(B) Evaluation of the Liquidity Coverage Ratio Level (Consolidated)
Our Consolidated LCR surpasses the regulatory standard (100%), with no issues.
We do not expect our Consolidated LCR to deviate significantly from the current level in the future, and our Consolidated
LCR disclosed herein does not differ significantly from our expectations.

Data section(A) Chronological changes in the Liquidity Coverage Ratio (Consolidated)
Our Consolidated LCR has remained stable over the past two years.

Appendix(2) Disclosure of qualitative information regarding the Liquidity Coverage Ratio (Consolidated)

Mizuho’s value
creation process

Executive messages /Features2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）/ 109,646,765

228

Liquidity Coverage Ratio

2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Basel Regulatory Disclosures

Status of Sound Management of Liquidity Risk

Item

As of March 31, 2023
Unweighted value by residual maturity
No maturity < 6 months 6 months to <1yr
≥1yr

As of December 31,2022
Unweighted value by residual maturity
No maturity < 6 months 6 months to <1yr
≥1yr

Weightedvalue

Weighted
value

Required stable funding (RSF) items (2)15 HQLA
Deposits held at financial institutions
16
for operational purposes
Loans, repo transactions-related
17 assets, securities and other similar
assets; of which:Loans to- and repo transactions
18
with- financial institutions (secured
by level 1 HQLA)
Loans to- and repo transactions
19
with- financial institutions (notincluded in item 18)
Loans and repo transactions20
related assets (not included initem 18, 19 and 22); of which:With a risk weight of less thanor equal to 35% under the21
Standardised Approach forcredit risk
22
Residential mortgages; of which:With a risk weight of less thanor equal to 35% under the23
Standardised Approach forcredit risk
Securities that are not in default
24
and do not qualify as HQLA andother similar assets
Assets with matching interdependent
25
liabilities
26 Other assets; of which:Physical traded commodities,
27
including gold
Assets posted as initial margin forderivative contracts and contributions
28
to default funds of CCPs (including
those that are not recorded on
consolidated balance sheet)
29
Derivative assets
Derivative liabilities (before
30
deduction of variation margin
posted)All other assets not included in the
31
above categories
32 Off-balance sheet items
33 Total required stable funding
Consolidated net stable funding ratio
34(NSFR)////

2,970,422

/

/

/

/

2,945,288

429,004

00

0

214,636

452,113000226,190

5,982,701 32,929,251

8,355,987

65,576,489

73,870,385

5,159,371 40,114,276

7,812,401

65,082,160

75,371,537

211,469

5,906,362

2,464

133,734

136,873

166,2428,438,239

2,976

131,055

132,833

3,078,778

7,137,185

1,803,707

10,037,899

12,582,166

1,948,187

7,236,973

1,944,368

9,624,282

12,064,524

538,018 19,010,870

6,042,468

43,887,274

49,695,812

830,307 23,495,104

5,468,066

43,844,817

51,720,103

01,831,697

459,598

1,628,247

1,895,659

4,988

1,512,015

437,481

1,599,194

1,874,131

0

5,048

40,8977,510,273

5,546,039

0

4,703

39,3807,592,708

5,615,932

0

1,618

2,592

4,303,333

2,799,271

0

1,690

2,597

4,299,555

2,796,855

2,154,435

869,784

466,450

4,007,307

5,909,494

2,214,633

939,254357,6103,889,296

5,838,142

-

-

-

-

-

-

-

-

-

-

6,858,938

5,418,963

129,1435,580,046

12,138,443

6,878,264

4,775,991

100,400

6,107,028

11,489,399

0

/

/

/

0

0

/

/

/

0

/

/

/

1,273,784

1,082,717///

1,261,707

1,072,451///

132,627

132,627

/

/

/

0

0

/

/

/

2,955,565

147,778///

3,925,671

196,2836,858,938

5,418,963

129,143

1,218,069

10,775,320

6,878,264

4,775,991

100,400

919,649

10,220,664

/
/

/
/

/
/

124,431,099
2,592,420/ ¥91,786,308

/
/

/
/

/
/

122,737,607
2,612,879/ ¥92,645,294

/

/

/

/

/

/

/

/

122.5%

118.3%(2) Disclosure of qualitative information regarding the Net Stable Funding Ratio (Consolidated)(A) Chronological changes in the Net Stable Funding Ratio (Consolidated)
Our Consolidated NSFR has remained stable since its implementation on September 30, 2021.
(B) Interdependent assets and liabilities
We do not apply the "exceptional treatment against interdependent assets and liabilities" in Article 99 of the Notice No. 62.
(C) Other matters regarding the Net Stable Funding Ratio (Consolidated)
Our Consolidated NSFR surpasses the regulatory standard (100%), with no issues.
We do not expect our Consolidated NSFR disclosed herein to deviate significantly from the current level in the future, and
our Consolidated NSFR does not differ significantly from our expectations.

229

Liquidity Coverage Ratio

Notes: 1. All securities included in the above table have fair value.
2. The portion pledged as collateral mainly consists of securities and others collateralized for borrowed money, foreign and domestic exchange transactions or derivatives
transactions, or substituted for margins for futures transactions.
3. Figures in the above table do not represent high quality liquid assets under the liquidity ratio regulation.

■ Status of Major Funding(Billions of yen)
Types of Financial Instruments
Deposits
Negotiable Certificates of Deposit
Call Money and Bills Sold
Borrowed Money
Commercial Paper
Issued Bonds
Due to Trust AccountTotal

Within 1 year
¥147,305.9
13,247.6
1,814.8
1,118.8
477.1
968.3
1,534.0¥166,466.8

1-3 years¥2,393.8546.3
2,267.1
2,215.1¥7,422.4

As of March 31, 2023
3-5 years
5-7 years¥578.3
¥24.3
249.9
106.5
2,308.1
1,309.0¥3,136.4¥1,439.9

1-3 years¥2,525.9
578.5
221.9
2,383.3¥5,709.8

As of March 31, 2022
3-5 years
5-7 years¥608.5
¥32.9
0.5
330.3
89.5
1,673.6
972.8¥2,613.0¥1,095.3

7-10 years Over 10 years¥59.8¥136.7193.1
189.8
1,863.8
1,236.6¥2,116.8¥1,563.2

Mizuho’s value
creation process

As of March 31, 2023 As of March 31, 2022
¥67,152.1¥51,359.3
7,610.3
6,487.7
36,179.8
43,367.9
2,048.1
1,517.5
34,131.6
41,850.3
2,515.7
2,577.3
20,239.2
28,620.4
16,449.2
25,158.7
554.6
419.6
3,235.3
3,042.0
11,376.6
10,652.6
9,554.5
8,937.5
1,822.1
1,715.0
110,942.3
101,214.9(20,243.8)(13,372.3)¥90,698.4¥87,842.6

Business strategies forvalue creation(Billions of yen)
Item
Cash and Due from Banks (including Due from Central Banks)
Trading Securities
Securities
Bonds Held to Maturity
Other Securities
Japanese Stocks
Japanese Bonds
Japanese Government Bonds
Japanese Local Government Bonds
Japanese Corporate Bonds
Other
Foreign Bonds
Other
Total
Portion pledged as collateral
Total after the deduction above

Governance for value
creation■ Status of Major Liquid Assets

Executive messages /Features2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）(Billions of yen)

Within 1 year
¥135,508.1
16,290.4
1,278.0
5,592.4
537.1
1,329.4
1,167.2¥161,702.9

7-10 years Over 10 years¥34.4¥120.8142.2
183.9
1,847.9878.6¥2,024.6¥1,183.4

Data section

Types of Financial Instruments
Deposits
Negotiable Certificates of Deposit
Call Money and Bills Sold
Borrowed Money
Commercial Paper
Issued Bonds
Due to Trust AccountTotal

Appendix

Notes: 1. Regarding Deposits, Demand deposits are included in "Within 1 year"
2. Borrowed money or issued bonds with open ended, ¥30.0 billion, ¥1,628.0 billion, respectively, at March 31, 2022, and ¥30.0 billion, ¥1,470.0 billion, respectively, at March
31, 2023, are excluded.

230

Liquidity Coverage Ratio

2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Basel Regulatory DisclosuresCompensation of Directors and Employees■ Compensation of Directors and Employees(1) Qualitative Disclosure(A) State of the Organizational System Relating to Compensation of "Subject Directors and Employees" of Mizuho
Group
1. Scope of "Subject directors and employees""Subject directors, etc." and "Subject employees, etc." subject to disclosure as provided for in the FSA Notice(collectively, "Subject directors and employees") are as follows:(1) Scope of "Subject directors, etc.""Subject directors, etc." are directors and executive officers as defined in the Companies Act of Mizuho Financial
Group, Inc. ("MHFG"). Outside directors are excluded.
(2) Scope of "Subject employees, etc.""Subject employees, etc." who are subject to disclosure are executive officers (as defined in our internal regulations),
and employees of MHFG and directors and employees of its "Major consolidated subsidiaries", who are "persons who
receive large amounts of compensation" and "materially affect the operation of business or the state of assets ofMizuho group or its major consolidated subsidiaries."(a) Scope of "Major consolidated subsidiaries"
A "Major consolidated subsidiary" is a consolidated subsidiary, etc., (i) whose total assets as a percentage ofconsolidated total assets exceeds 2% of a bank holding company or bank and (ii) who materially affects the
management of our group. Specifically, those are Mizuho Bank, Ltd. ("MHBK"), Mizuho Bank (USA) and othersubsidiaries who conduct banking business similar to a branch of MHBK, Mizuho Trust & Banking Co., Ltd.
("MHTB"), Mizuho Securities Co., Ltd. ("MHSC") and Mizuho Securities USA LLC and Mizuho International plc.
(b) Scope of "Persons who receive large amounts of compensation"
A "Person who receives large amounts of compensation" refers to a person who receives compensation thatexceeds the base amount from MHFG or its "Major consolidated subsidiaries." The base amount at MHFG has
been set at ¥80 million. Such base amount has been set based on the average amounts of the compensation of
directors and executive officers (as defined in the Companies Act) of MHFG, MHBK and MHTB for the last threefiscal years (excluding persons who resigned or retired during each of such fiscal years), taking into accountfluctuations in amounts of compensation over past fiscal years. The preceding base amount has been adopted as
the common base in order to unify the selection criteria of persons who receive large amounts of compensation ateach of the companies in this paragraph.
(c) Scope of "Persons who materially affect the operation of business or the state of assets of Mizuho group"
A "Person who materially affects the operation of business or the state of assets of Mizuho group" means aperson who exerts significant influence on the operation of the business of MHFG or a "Major consolidated
subsidiary" through his or her work in conducting transactions or management, or who materially affects the stateof assets by incurring losses on transactions. Specifically, it includes executive officers (as defined in our internal
regulations) of MHFG and directors, executive officers (as defined in our internal regulations)and market
department employees of "Major consolidated subsidiaries."
2. Decisions on compensation of "Subject directors and employees" and the name, composition and duties of thecommittee to supervise business execution and other major organizations relating to payment of compensation and othercompensation, etc.
(1) State of maintaining and ensuring the Compensation Committee, etc.
MHFG is a Company with Three Committees, and has established the Compensation Committee as a statutory
committee.
The chairperson of the statutory Compensation Committee shall be an outside director, and in principle its members
shall be appointed from among the outside directors (or at least non-executive directors) in order to ensure objectivity
and transparency in director and executive officer compensation. As of March 2023, all three members of theCompensation Committee, including the chairperson, were outside directors. The Compensation Committee shalldetermine the compensation for each individual director and executive officer of MHFG, exercise approval rights in
MHFG for compensation for each individual director of MHBK, MHTB and MHSC, determine the basic policy andcompensation system for directors and executive officers of MHFG and exercise approval rights in MHFG for thebasic policy and compensation system for directors and executive officers of MHBK, MHTB and MHSC.
In addition, the president of each of MHBK, MHTB and MHSC determines the amount of compensation for each of its
executive officers and specialist officers.

231

Qualitative disclosure

8Note: The total amount of compensation is not set out above as it is not possible to separately calculate the amounts that are paid as consideration for the execution of duties by thecompensation committee.

(B) Evaluating the Appropriateness of the Design and Operation of the System Relating to Compensation of"Subject Directors and Employees" of Mizuho Group
1. Policies relating to compensation(1) Policies relating to compensation of "Subject directors, etc. "Mizuho Financial Group set out the “Mizuho Financial Group Basic Policy for Executive Compensation” (the “Basic
Policy for Executive Compensation”) concerning the determination of compensation for each individual director andexecutive officer (“Officers, etc.”) of Mizuho Financial Group .
a.“Mizuho Financial Group Basic Policy for Executive Compensation”(i) Basic Principle
Executive compensation shall be provided as compensation for the responsibilities assigned to and the performanceof each individual director and executive officer (the “Officers”) and function as an incentive for each of the Officers to
exercise their designated function to the fullest in our effort to realize management that contributes to value creationfor various stakeholders and improve corporate value through continuous and stable corporate growth, based on ourbasic management policies under our corporate philosophy.
(ii) Executive Compensation System(a) Executive compensation for each Officer shall be determined based on a pre-determined executive compensation
system.
(b)The executive compensation system shall include systems and rules related to, among other factors, payment
compensation standard (standard amounts), structure (such as fixed and variable portions), form (such as cash orstocks) and timing (such as regular payment or payment at resignation).
(c)The executive compensation system shall be established in accordance with both domestic and foreign rules andguidelines concerning executive compensation.
(d) The executive compensation system shall reflect our economic and social environment as well as our group’s
medium- and long-term business performance, and we shall establish our system appropriately by referring to such
systems of other companies, including our competitors, in its establishment.
(iii) Control(a) Part of an Officer’s executive compensation shall be provided on a deferred payment basis over multiple years inorder to mitigate risks stemming from actions taken for short-term gains that are excessively risky or could
compromise value creation for various stakeholders.

Mizuho’s value
creation process
Business strategies forvalue creation

Compensation Committee(MHFG)

Governance for value
creation

Number of meetings held
(April 2022 – March 2023)

Data section

3. Total amount of compensation paid to members of the compensation committee and number of meetings held by theCompensation Committee

Appendix(2) Decisions on compensation of "Subject employees, etc."
Matters relating to executive officers (as defined in our internal regulations) and specialist officers of MHFG anddirectors, executive officers (as defined in our internal regulations) of MHBK, MHTB and MHSC are as set out in (1)State of maintaining and ensuring the Compensation Committee, etc.. With regard to the compensation of directors of
MHBK, MHTB and MHSC, it is determined through approval by the Compensation Committee, pursuant to eachstatutory procedure for directors who are Audit & Supervisory Committee Members and for directors who are not
Audit & Supervisory Committee Members, and set within the scope of the total amount of compensation of directors
resolved at the ordinary general meeting of shareholders.
The compensation of subject employees, etc., is decided and paid in accordance with the salary and bonus systemestablished by MHFG and the "Major consolidated subsidiaries." Such system is designed and put into writing by thehuman resources departments of MHFG and the "Major consolidated subsidiaries" which are independent of
departments furthering business. In terms of the compensation of overseas employees, each overseas office oroperation determines its own compensation policy based on local laws and regulations as well as employment
relationships.

Executive messages /Features2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）232

Qualitative disclosure2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Basel Regulatory DisclosuresCompensation of Directors and Employees(b) We shall introduce, as necessary, methods to decrease or compel forfeiture of such deferred amounts or to compel
forfeiture of, in whole or in part, compensation already paid.
(iv) Governance(a)In order to effectively secure objectivity, appropriateness and fairness with respect to executive compensation, theCompensation Committee shall determine important related matters such as this policy, the design of the executive
compensation system and the executive compensation for each of director and executive officer as defined in the
Companies Act.
(b)All members of the Compensation Committee shall be in principle appointed from among outside directors (or atleast non-executive directors), and the Chairperson thereof shall be an outside director.
(v) Disclosure
In order to effectively secure transparency with respect to executive compensation, this policy, the executive
compensation system and executive compensation that has been decided, shall be disclosed in a lawful, appropriatemanner through suitable means.
b. Compensation System
I. Compensation for the Officers responsible for business execution shall, in principle, consist of Basic Salary, Stock
Compensation and Performance Payments. In addition, the composition ratio of fixed compensation and corporate
performance linked compensation and others (variable compensation) will be determined according to the functions
and responsibilities of each of the Officers and the composition ratio of fixed compensation of the Group CEO isdetermined to be the minimum composition ratio. From the perspective of ensuring the effectiveness of thesupervisory function, compensation for non-executive officers responsible for management supervision shall be, in
principle, in the form of fixed compensation consisting of Basic Salary and Stock Compensation I and suchcomposition shall be, in principle, 85% and 15%, respectively.
(i) “Basic Salaries” shall factor in the functions and responsibilities of each of the Officers, and payment will be mademonthly in cash.
(ii) “Performance Payment” shall be made as a monetary incentive for Officers, etc., to achieve our Buisiness Plan andas compensation for their achievement. The payment thereof shall reflect the results of organizations (our in-housecompanies and units, etc.) that each Officer, etc., is in charge of and the performance of each Officer, etc., inaddition to the standard amount for the functions and responsibilities of each of the Officers. “Performance Payment"
shall be paid, in principle, within the range of 0% to 170% of the standard amount for the functions andresponsibilities of each of the Officers. A system shall be adopted which, based on resolution by the Compensation
Committee, etc., enables certain amounts of deferred payments of the performance payment over three years, aswell as a decrease or forfeiture of the deferred amount depending on performance, etc., of the company or theindividual.
(iii) “Stock Compensation” shall be paid in the form of shares of common stock of Mizuho Financial Group consisting of“Stock Compensation I” and “Stock Compensation II,” (together “Stock Compensation I and II”) acquired from thestock market through a trust with an aim to align the interests of Officers, etc., with those of the shareholders andincrease the incentive to enhance corporate value.
(a) “Stock Compensation I” shall be paid at the time of retirement of each Officer, etc., in the form of shares ofcommon stock of Mizuho Financial Group calculated based on the functions and responsibilities of each of the
Officers. A system shall be adopted which enables a decrease or forfeiture of the amount by resolution of theCompensation Committee, etc., depending on performance of the company or the individual.
(b) “Stock Compensation II” shall be paid in accordance with the status of achieving our Business Plan and ascompensation for their achievement in addition to the standard amount for the functions and responsibilities ofeach of the Officers. "Stock Compensation II" shall be paid, in principle, within the range of 0% to 130% of thestandard amount for the functions and responsibilities of each of the Officers.
A system shall be adopted which enables the entire amount of deferred payments over three years, as well as adecrease or forfeiture of the deferred amount by resolution of the Compensation Committee, etc., depending on
performance of the company or the individual.
II. There are cases where compensation for some personnel, including those officers recruited locally in countries otherthan Japan, may be designed individually in compliance with local compensation regulations while taking into
consideration local compensation practices and the responsibilities, business characteristics and market value, etc.,
of each respective officer.
For cases where compensation is designed individually, payment of compensation is also made in accordance with

233

Qualitative disclosureMizuho’s value
creation process
Appendix

Data section

2. The effect of the overall level of compensation, etc., on equity capital
The Compensation Committee of MHFG receives reports on the amount of compensation paid to directors, executive
officers (as defined in the Companies Act), executive officers (as defined in our internal regulations) of MHFG, MHBK,MHTB and MHSC in the previous fiscal year and confirms that there is no material effect on the Mizuho group’s
performance or the adequacy of equity capital.

Business strategies forvalue creationc. Compensation Determination Process
I. The Compensation Committee shall determine the compensation for each individual director and executive officer of
MHFG, exercise approval rights in MHFG for compensation for each individual director of MHBK,MHTB and MHSC,
determine the basic policy and compensation system for directors and executive officers of MHFG and exercise
approval rights in MHFG for the basic policy and compensation system for directors and executive officers of MHBK,MHTB and MHSC, in order to effectively secure the transparency and objectivity of compensation.
II. The President & CEO, pursuant to this policy and regulations and detailed rules, etc., shall determine thecompensation for each executive officer, as defined in our internal regulations, and approve at the MHFG thecompensation of each individual executive officer of MHBK, MHTB and MHSC.
III. The Compensation Committee will verify the validity of the compensation system and standards based on economic
and social conditions and survey data with respect to management compensation provided by external specializedorganizations.
IV. All members of the Compensation Committee shall be appointed from among outside directors (or at least nonexecutive directors) and the Chairperson thereof shall be an outside director.
V. The Compensation Committee may have officers who are not members of the committee (including officers of
MHBK, MHTB and MHSC) such as the President & CEO and external experts, etc., attend its meetings and provide
their opinion in order to facilitate adequate and appropriate discussions and determinations.
(2) Policies relating to compensation of "Subject employees, etc."
The policies relating to compensation for executive officers (as defined in our internal regulations) of MHFG anddirectors, executive officers (as defined in our internal regulations) of MHBK, MHTB and MHSC are also the same as
the policies described in (1) Policies relating to compensation of "Subject directors, etc." above. Compensation forother employees, etc., is determined in accordance with their duties and responsibilities. Some bonuses that arelinked to performance are determined after comprehensively evaluating the employee’s contribution to business,
including any qualitative contributions to the organization, in a manner that does not place an excessive emphasis on
results.

Governance for value
creationthe performance of the company or the individual. Payment of compensation is designed to avoid excessive risktaking through a system which enables certain amount or a portion of deferred payments and non-monetary
payments such as stock, as well as a decrease or forfeiture of the deferred amount depending on the performance,
etc., of the company or the individual.

Executive messages /Features2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）234

Qualitative disclosure2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Basel Regulatory DisclosuresCompensation of Directors and Employees(C) Compatibility between System for Compensation of "Subject Directors and Employees" of Mizuho Group and
Risk Management and Matters Relating to Linking Compensation with Performance
1. Compatibility between system for compensation of "Subject directors and employees" and risk management
The compensation of employees in risk management department, compliance department and internal audit department
is decided in accordance with the salary and bonus system, and specific payment amounts are conclusively determinedin accordance with employee performance evaluations made by the relevant department and the human resources
department, independent from departments furthering business.
Each employee of the risk management department, the compliance department and the internal audit department sets
their own objectives in the employee performance evaluations, subject to the approval of their superiors. The degree towhich the objectives are achieved is evaluated by taking into account the degree of the employee's contribution to theestablishment of a system for risk management, compliance and internal audit.
2.Linking compensation of "Subject directors and employees" with performance
The performance payments and performance-based stock compensation for "Officers Responsible for Business
Execution" shall be determined by multiplying the standard amount, which is determined based on the functions andresponsibilities of each of the Officers, by a corporate performance linked coefficient. To determine the coefficient, thequantitative items are evaluated based on the target achievement rates for the “Consolidated Net Business Profits + Net
Gains (Losses) related to ETFs and others" (which indicates the profitability of the core operations), the “Profit
Attributable to Owners of Parent” (which is the final result of management’s performance), the “Consolidated ROE” andthe “Expense Ratio” (which indicate the management’s efficiency). The target achievement rate for each indicator will becapped at 150% and will be set at 0% if it falls below the target by a certain degree. In addition, the qualitative items areevaluated comprehensively, ranging from 0 to 150%, from the perspective of increasing corporate value through thegroup’s sustainable and stable growth based on items that, for example, cannot be recognized only by the target
achievement rates, such as the “quality of profits” (which takes into account the comparisons with previous years andother companies) and the “sustainability initiatives” (which utilized the comparisons with previous years and othercompanies that were evaluated by four major ESG evaluation institutions (S&P Global, Sustainalytics, MSCI and FTSE)).
In addition to the above, for the Officers other than the Group CEO, the evaluation on, among other matters, the resultsof each organization that each of the Officers is in charge of (in-house companies and units) will also be taken into
consideration. A certain amount of the performance payments and the entire amount of the performance-based stockcompensation shall be made or paid in deferred payments over three years, and a decrease or forfeiture of the deferred
amount may be made depending on the performance, etc., of the company and such officer. It should be noted thatcertain "Subject directors and employees" have entered into compensation-related contracts. Stock compensation for"Non-Executive Officers Responsible for Management Supervision" shall be made in accordance with the standard
amount set for the functions and responsibilities of each of the Officers, and the payment level shall not change based on
the performance of each officer. With regard to compensation for other employees, salary is determined according totheir job duties and responsibilities. In addition, the proportion linked to the performance bonus is determined throughappropriately and comprehensively evaluating the contribution to performance, including the degree of contribution to theorganization, etc., so as not to become excessively performance based.

235

Qualitative disclosure

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23

b
“Subject
employees, etc.”

21¥1,108
931
24
177
177
－
－
19
621
323
14
297
297
－
－
－
－
－
－
－
－
¥1,730231¥11,860
11,174
305
22
22
663
－
229
20,241
19,471
8,655
769
2,856
－
－
－
－
－
12
453
－
¥32,555

Number of “Subject directors, etc.” and “Subject employees, etc.”
Fixed compensation amount (3+5+7)
Cash compensation amount
Of which, deferred amountFixedcompensation
Stock compensation amount or stock-based type compensation amount
Of which, deferred amount
Other compensation amount
Of which, deferred amount
Number of “Subject directors, etc.” and “Subject employees, etc.”
Variable compensation amount (11+13+15)
Cash compensation amount
Of which, deferred amount
Variablecompensation
Stock compensation amount or stock-based type compensation amount
Of which, deferred amount
Other compensation amount
Of which, deferred amount
Number of “Subject directors, etc.” and “Subject employees, etc.”
Retirement
Retirement benefits amountbenefits
Of which, deferred amount
Number of “Subject directors, etc.” and “Subject employees, etc.”
Other
Other compensation amountcompensation
Of which, deferred amountCompensation amount (2+10+18+21)

Notes: 1. Amounts of compensation of “Subject directors, etc.” include amounts of compensation received for duties performed as a director or executive officer of a "Major
consolidated subsidiary."
2. The number of employees is the actual number of persons (a) for the compensation for the fiscal year ended March 31, 2023 and (b) for the compensation for the fiscal year
ended March 31, 2022 for the payments made or anticipated payments for which the amount became clear during the fiscal year ended March 31, 2023 are stated.
3. The stated amount is the total amount for the fiscal year ended March 31, 2023 and the fiscal year ended March 31, 2022.
4. No. 7, “Fixed compensation,” “Other compensation amount,” includes condolence money insurance premiums, based on the decision of our Compensation Committee.
5. No. 11, “Variable compensation” “Cash compensation amount,” includes the recorded performance payment for the fiscal year ended March 31, 2022 for directors, executive
officers (as defined in the Companies Act),and executive officers (as defined in our internal regulations) of MHFG, MHBK, MHTB and MHSC. For portions that exceed acertain amount, we plan to defer payment over the three-year period from the fiscal year ending March 31, 2024.
6. No. 13, “Variable compensation” “Stock compensation amount or stock-based type compensation amount” includes the amount obtained by multiplying the stockcompensation and performance-based stock compensation ownership points (with one point to be converted into one share of MHFG stock) granted to the directors,
executive officers (as defined in the Companies Act), and executive officers (as defined in our internal regulations) of MHFG, MHBK, MHTB and MHSC for the fiscal year
ended March 31, 2022 by the book value of MHFG's shares (1,607.087 yen per share). For stock compensation and performance-based stock compensation for the fiscal
year ended March 31, 2022, we plan to defer payment over the three-year period from the fiscal year ending March 31, 2024.
7. Because the amounts of the stock compensation, performance payment and performance-based-type stock compensation for the directors, executive officers (as defined in
the Companies Act), and executive officers (as defined in our internal regulations) MHFG, MHBK, MHTB and MHSC for the fiscal year ended March 31, 2023 have not been
determined at this time, they are not included in the above compensation. However, we have recorded the required reserves for accounting purposes.
8. The exercise periods for the stock compensation-type stock options (stock acquisition rights) are as set out below. Under the stock option agreements, exercise of theoptions is postponed, even during the exercise period, until the time of retirement of the director or employee.

Mizuho’s value
creation process

No.

a“Subjectdirectors, etc.”

Business strategies forvalue creation(Millions of yen, except people)

Governance for value
creation(A) REM1：Compensation Assigned to the Relevant Fiscal Year

Data section(2) Quantitative Disclosure Items

Executive messages /Features2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

December 9, 2011 to December 8, 2031

Fifth Series of stock Acquisition Rights of MHFG

September 3, 2012 to August 31, 2032

Sixth Series of stock Acquisition Rights of MHFG

February 18, 2014 to February 17, 2034

Seventh Series of stock Acquisition Rights of MHFG

December 2, 2014 to December 1, 2034

Appendix

Exercise period
Fourth Series of stock Acquisition Rights of MHFG

236

Quantitative Disclosure Items

2023/09/06 10:47:03 / 23006176_株式会社みずほフィナンシャルグループ_ディスクロージャー誌（通期）

Basel Regulatory DisclosuresCompensation of Directors and Employees(B) REM2：Special Compensation(Millions of yen, except people)
a

b

c
d
Lump sum payments
at the time of recruitment
PeopleJPY

Bonus guarantees
People“Subject directors, etc.”“Subject employees, etc.”

JPY

－
－

－
¥－

－
－

e

f

Additional retirement benefits
People－¥－－9(C) REM3：Deferred Compensation

Cashcompensation
amountStockcompensation“Subjectamount or stockdirectors,
based type
etc.”
compensation
amountOther
compensation
amountCashcompensation
amountStockcompensation“Subjectamount or stockemployees,
based type
etc.”
compensation
amountOther
compensation
amountTotal amount

JPY

－
¥450
(Millions of yen)ab

Deferredcompensation
amountOf which, thedeferredcompensation
amount subject toadjustment orvariationcRegardingcompensation
after allocation,
variable amounts
adjusted but notlinked tovariations for the
relevant fiscal
yeardRegardingcompensation
after allocation,
variable amounts
adjusted andlinked tovariations for the
relevant fiscal
yeareAmount ofdeferredcompensation
paid in the
relavent fiscal
year

¥32

¥32

¥－

¥－

¥10

539

539

－

105

216

－

－

－

－

－

16,584

13,573

(0)

－

5,285

3,469

963

－

(304)

160

－

－

－

－

－

¥20,625¥15,107¥(0)¥(198)¥5,673(D) Other Relevant Matters Relating to Our System of Compensation for "Subject Directors and Employees" ofMizuho GroupNot applicable, other than those covered in the above.

237

Quantitative Disclosure Items

Disclosure Policy
1. Basic Principles
Our Corporate Philosophy is “Operating responsibly andtransparently with foresight, Mizuho is deeply committed toserving client needs, enabling our people to flourish, and helping
to improve society and the communities where we do business.”
We place one of the highest management priorities oncontinuing to disclose information to our customers,
shareholders, and investors both in and outside Japan in a fair,timely and appropriate manner, in order that they may form
proper judgments and appraisals of the group. To achieve thisaim, we observe applicable domestic and international laws andregulations as well as stock exchange rules relating tocorporate disclosure, and we establish and implement
appropriate Disclosure Controls and Procedures.
2. Disclosure Controls and Procedures(1) Establishment and Implementation of Disclosure Controls
and Procedures
Our Disclosure Controls and Procedures are established toobserve applicable domestic and international laws andregulations as well as stock exchange rules and to
implement fair, timely and appropriate corporate disclosure.
The Disclosure Controls and Procedures are the processcarried out by executive officers and employees of Mizuho
Financial Group and include Internal Controls over Financial
Reporting designed to provide reasonable assurance
regarding the reliability of Financial Reporting and thePreparation of Financial Statements. We have established
the basic principles underlying our Disclosure Controls andProcedures as well as our internal rules related to Disclosure
Controls and Procedures that govern the management
framework for the entire Mizuho Financial Group includinggroup companies, and we are striving to establish, implement
and continuously improve our Disclosure Controls andProcedures. Our Disclosure Committee is the Business Policy
Committee that is responsible for discussing andcoordinating matters relating to Disclosure Controls andProcedures.
(2) Evaluation of Effectiveness of Disclosure Controls andProcedures
Our Disclosure Controls and Procedures are documented,
and evaluation of the overall effectiveness of our Disclosure
Controls and Procedures is conducted regularly by reviewing
the contents of such documentation and theirimplementation. In addition, evaluation of the effectivenessand appropriateness of Disclosure Controls and Proceduresis conducted through internal audits.
(3) Others
We established a “Code of Ethics for Financial Professionals”
to be observed by all executive officers and employees
within Mizuho Financial Group who engage in financial
reporting, accounting or disclosure. We have also developed
the “Internal Controls and Audit Hotline”, a system designed
for reporting questionable accounting, internal control, orauditing matters from both inside and outside Mizuho
Financial Group.

follow the defined disclosure procedures such as publishingsuch information in business reports (Jigyo–Hokoku), annual
securities reports (Yukashoken–Hokokusho), Integrated
Report (Annual Review) and other disclosure publications, aswell as providing such information through the information
distribution systems of domestic and international stock
exchanges and through press releases. We also endeavor todisclose other information in a fair, timely and appropriatemanner. When we disclose such information, we basicallypublish on our website the information we disclose. In
addition, we endeavor to utilize the latest disclosure methods
and tools to provide more fair and widespread disclosure.
(2) Investor Relations Activities
Investor Relations activities to market participants both inand outside Japan such as shareholders, investors andsecurities analysts are conducted by the President & Group
CEO, Group CFO, Deputy Group CFO, Chief IR Officer, andexecutive officers and employees designated by them. In
accordance with our Basic Principles described in section 1
above, and with due attention to two–way communication,
we endeavor sincerely to facilitate a proper understanding of
our management strategies, financial condition and othermatters. In this way, we aim to earn the trust of the market
and obtain an appropriate market reputation.
Beginning with the disclosure required by applicable
domestic and international laws and regulations as well as
stock exchange rules, we endeavor to grasp properly thetypes of information desired by the market and to disclose
useful and appropriate information voluntarily andproactively, in accordance with the so-called Fair Disclosure
Rule (“FDR”). Regarding disclosure of information we
consider particularly important, we communicate suchinformation on an ad hoc basis as and when necessary, even
if a press release has already been issued, through suchmeans as special briefing sessions.
As we respect various disclosure principles including fairdisclosure in regards to individual calls, private meetings orconferences hosted or attended by representatives ofMizuho Financial Group, we strive to limit carefully our
explanations to matters already disclosed and facts
commonly known.
Should we happen to disclose important information such as
information subject to insider trading regulations and/or
undisclosed financial results that might have a significant
influence on stock prices, we take necessary action such as
officially announcing the information as soon as possible, in
accordance with FDR.
(3) Correction of Misconceptions in the Markets
If we identify significant misconceptions regarding Mizuho
Financial Group in the market due to the spread of rumors orotherwise, we endeavor to investigate their causes andcorrect such misconceptions promptly.

3. Disclosure Methods, Other(1) Disclosure Methods
With respect to the information which is required to bedisclosed pursuant to applicable domestic and internationallaws and regulations as well as stock exchange rules, we
Integrated Report 2023

3
238

Mizuho Financial Group, Inc.
1-5-5, Otemachi, Chiyoda-ku, Tokyo 100-8176, Japan
www.mizuhogroup.com

This PDF version of the Integrated Report is a digital version of the Forest StewardshipCouncil (FSC)-certified published version, which is printed on FSC-certified paper.