2021
Mizuho Financial Group

Integrated
reportAnnual Review

April 2020 – March 2021

CONTENTS
P. 3

Message from the Group CEO

P. 9

Identifying the cause of IT system
failures at Mizuho Bank andpreventing further incidents

 orporate & Institutional Company
CGlobal Corporate Company
Global Markets Company
Asset Management Company
Global Products Unit
Research & Consulting Unit
P. 51 Sustainability
P. 63 Digitalization
P. 65 Employee engagement

P. 13 Dialogue between the Chairmanof the Board of Directors and theGroup CEO

About Mizuho
P. 17
P. 19
P. 21
P. 23
P. 25
P. 26

Mizuho’s journey
Value creation process
Materiality/Risks and opportunities
Business domain
Financial data
Non-financial data

Foundations for our corporate value

P. 27 Message from the Group CFO

Corporate governanceRisk governanceCompliance
Fiduciary duties
Compliance with international
financial regulations
P. 92 Stakeholder communication

Our strategies for creating value

Data section

P. 35 Progress on the 5-Year Business
Plan
P. 37 Business strategies by company/
unitRetail & Business Banking
Company

P. 71
P. 81
P. 87
P. 90
P. 91

P. 97 Eleven-year major financial data
(FY2010-2020)
P. 99 Review and analysis for fiscal 2020
P. 103 Five-year non-financial data
P. 104 ESG evaluation, Participation ininternational initiatives

P. 105 Mizuho’s global network
P. 106 Corporate profile

Appendix

P. 107 Group companies
P. 109 Compliance contacts
P. 110 Support for SMEs and regional
revitalization
P. 111 Internal audit structure
P. 112 Risk management structure
P. 124 Business continuity management
P. 125 Senior executives
P. 126 Location of offices outside JapanP. 129 Investor information
P. 130 Financial Analysis [Under Japanese
GAAP]
P. 138 Financial Data of Mizuho Financial
Group, Inc. [Under Japanese GAAP]
P. 244 Non-Consolidated Financial
Statements of Mizuho Financial
Group, Inc. and Three Subsidiaries[Under Japanese GAAP]
P. 258 Basel Regulatory Disclosures
P. 342 Disclosure Policy

Editorial policy
This Integrated Report includes financial information as well as non-financial information on such subjects as ESG. The report presents
information on Mizuho’s efforts related to strategies, governance, and other subjects along with information on how those activities areleading to the creation of value for our customers, society, and Mizuho over the short, medium, and long terms. It was edited with theintention of providing stakeholders with concise and clear explanations in a story-like form.
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, after verification of appropriateness by the Disclosure
Committee, the report was given final approval by the President & Group CEO.
We hope this report will further improve understanding of Mizuho and its goal of being “the most trusted financial services
group with a global presence and a broad customer base, contributing to the prosperity of the world, Asia, and Japan.”
Importance/simplicity
2021

Guidelines
referred toMizuho Financial Group

Integrated
reportAnnual Review
Mizuho Financial Group

April 2020 – March 2021|

Integrated Report 2021

Integrated Report
Mizuho Financial Group, Inc.
1-5-5, Otemachi, Chiyoda-ku, Tokyo 100-8176, Japan

International Integrated Reporting
Council’s* “International Integrated
Reporting Framework” (revised in
January 2021)
Ministry of Economy, Trade andIndustry’s “Guidance for Collaborative
Value Creation” (published in May 2017)www.mizuho-fg.com

Nonfinancial

005_7080587912109.indd

カスタム 縦090_7080587912109.indd

12021/08/18

11:25:09
18:26:39

Financial
On our website: Sustainability
https://www.mizuhogroup.com/sustainability• Sustainability• Business Activities• Finance and Economic
Education• Employees• Human Rights• Customers• Environment• Social Contributions• Governance• Communication

On our website: Financials and Presentations
https://www.mizuhogroup.com/investors/materials• Company briefing
materials• Financial documents• IR event documents• Briefings for individual
investors• Financial Statements• Securities Reports(Japanese only)• SEC Filings• Financial Statements(under US GAAP)

Completeness

Scope of thereportPeriod covered: From April 1, 2020 toMarch 31, 2021
Also includes some information after
April 2021
Scope covered: In principle, Mizuho
Financial Group and its subsidiaries andaffiliates

Publication
information

Date of issue: September 2021

* Now the Value Reporting Foundation

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 our management to identify forward-looking statements. You can also identify forward-looking statements by discussions of strategy,plans or intentions. These statements reflect our current views 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 ourassets; revised assumptions or other changes related to our pension plans; a decline in our deferred tax assets; the effect of financial transactions entered into for hedging and other similar
purposes; failure to maintain required capital adequacy ratio levels; downgrades in our credit ratings; our ability to avoid reputational harm; our ability to implement our 5-Year 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 and elsewhere; 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 30, 2021, both of which are available in the Financial
Information section of our web page at www.mizuhogroup.com and also at the SEC’s website at www.sec.gov.
The contents of this Integrated Report were prepared prior to the announcement of our financial results for the first quarter of fiscal 2021.
We do not intend to update our forward-looking statements. We are under no obligation, and disclaim any obligation, to update or alter our forward-looking statements, whether as a result of
new information, future events or otherwise, except as may be required by the rules of the Tokyo Stock Exchange.

1

Mizuho Financial GroupCorporate Identity

Mizuho’s fundamental approach to

Corporate
Philosophy

business activities, based on the
raison d’être of Mizuho

Mizuho’s vision for the future,

Visionrealized through the practice of
the Corporate Philosophy

The shared values and principles ofMizuho’s people, uniting all executives

The Mizuho Values

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

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

The best

The most cohesive

financial services groupfinancial services provider

financial services group

The Mizuho Values
Customer First

Innovative Spirit

Team Spirit

Speed

PassionThe most trusted partner

Progressive andDiversity and

Acuity andCommunication andlighting the future

flexible thinking

collective strength

promptness

challenge for the future

Integrated Report 2021

2

Message from the Group CEO

Becoming an evenmore essential andreliable partner,in step with ourcustomers and society
COVID-19 is accelerating structural changes,
and the movement towards a moresustainable society has become stronger
than ever. Today, the world is facing
enormous change.
We must reflect on the lessons learned inlight of the IT system failures, and stride into
the future in step with our customers andsociety. In this message, I would like to sharewith you the strategies and initiatives we are
implementing towards Mizuho’s continuous
growth.

Tatsufumi Sakai
Member of the Board of Directors
President & Group CEO
Mizuho Financial Group, Inc.

3

Mizuho Financial GroupIntroduction
First of all, I would like to express my heartfelt sympathies for all of those who have contracted COVID-19 and themany people who have been impacted in various ways by the spread of the virus.

Message from theGroup CEO

Message from the Group CEO

Globally, following the dramatic deterioration the COVID-19 pandemic brought about in the real economy in 2020, we
have begun to see signs of a recovery in economic activity, accompanying the rollout of vaccines and control of
infection. Of course, there are still many uncertainties surrounding the new variants, the ongoing progress of vaccine
rollouts, and other factors, and we cannot allow ourselves to become complacent. However, the world does seem tobe gradually shifting from a pandemic to a post-pandemic state.
Interest in sustainability is also on the rise worldwide. The increasing attention towards various sustainability issues
has become a significant trend, focusing most prominently on the environment and mitigation of climate change but
also on respect of human rights in procurement and in business and on gender equality.

The world amidst and after the pandemic
The COVID-19 pandemic is constraining economic activity and physical movement, directly impacting the economy
and society. While the downturn in the economy is expected to subside with the rollout of vaccines, the changes insociety and in people’s behavior may be in part irreversible.

Message from theGroup CFO
Our strategies forcreating value

Global trends and structural changes

Foundations for our
corporate value

Under this unprecedented situation, Mizuho Bank recently experienced a series of IT system failures. I would like toapologize again for the considerable inconvenience and concern this caused our customers and stakeholders. We view
this as an issue for management to address and will reflect on what we can do to improve, taking this opportunity tostrengthen our resolution to fulfil our social responsibilities and public mission as a financial services group. We will
ensure that this situation never repeats itself by renewing the dedication of all members of the group to takeresponsibility for fully implementing efforts to prevent further incidents. I will lead these efforts and aim to achieve
continuous growth for Mizuho.

About Mizuho

Although this crisis has continued for over a year, we are beginning to see the light at the end of the tunnel as
vaccination rates rise. At the same time, some of the structural changes stemming from or accelerated by the
pandemic are beginning to take hold under the “new normal”, and this is having a variety of impacts on our customers
and society.

Appendix

Data section

Digitalization, the aging population and declining birthrate, and globalization—these megatrends have existed since
before the pandemic and have each been the cause of societal vulnerabilities and issues. COVID-19 threw thesevulnerabilities and issues into sharp relief and accelerated behavioral changes. Digitalization is driving governmental,
corporate, and individual activity—including activity that was previously thought to be ill-suited to digital formats—toshift to the online, virtual sphere, drawn by rapidly expanding needs for contact-free services. The aging populationand declining birthrate is creating anxieties about the future and urgency about asset and business succession for the
next generation; a growing number of people are taking the pandemic as an opportunity to review their life planningin a broad sense and are placing greater priority on health, healthcare, and inheritance. Globalization is advancing andprompting movement towards development of an optimal global system for handling the various business issues
exposed by the pandemic, exemplified by the imbalances in supply chains, and for handling the intensifying
complexities of geopolitics.
The business activities of both the finance industry in general and Mizuho in particular can be of use here. We see it as
our role to leverage our real estate, consulting, digital, and other non-financial capabilities; our industry insights; andour global network to fully address the current challenges.

Integrated Report 2021

4

Message from the Group CEO

Sustainability
As sustainability gains momentum worldwide, the COVID-19 pandemic has brought to the surface the obstacles tosustainability inherent in society as a whole and also induced changes in the behavior of governments, corporations, andindividuals. In response to climate change, Japan is calling for large-scale initiatives towards becoming carbon neutral by
2050, and every Japanese company is seeing their responsibilities and strategies in relation to climate change take on
greater importance. They are considering what risks and opportunities sustainability entails as a whole and what effects
these will have on their organizations. They are also questioning how to incorporate these into their strategies. Particularly
clients in sectors with a large environmental impact are confronting the considerable hurdle of designing a pathway totransition to low carbon, and we see every day that they are seeking a partner to guide them on such a pathway.
Based on the current organization we have built and the differentiating factors we have evolved over the years, how
can Mizuho assist our clients and positively contribute to society in the midst of these dramatic changes? The answer
to this question is part of our strategy for creating value.

Steadily improving our fundamental earnings power
The basic policy of the 5-Year Business Plan we launched in fiscal 2019 is to update our organization by implementing
structural reforms in three interconnected areas: business structure, finance structure, and corporate foundations. This
will enable us to respond to our customers’ and society’s considerable structural changes and achieve the goal which
we set as the title of the plan: “Transitioning to the Next Generation of Financial Services”.
Fiscal 2020 was the second year of this plan. Despite being under an unprecedented situation with the COVID-19
pandemic, we mitigated risk from the uncertain business environment, demonstrated our financial capabilities, andcaptured opportunities. At the same time, while coping with the realities of the pandemic on a daily basis, we moved
forward with our reforms in order to respond to accelerating structural changes and prepare for the post-pandemic
era. Through these efforts, we were able to achieve our initial 5-Year Business Plan targets of establishing a stablerevenue base and of reaching ¥700 billion in Consolidated Net Business Profits by fiscal 2021, achieving the latter one
year ahead of schedule and exceeding the target amount. In comparison to our results from past fiscal years, we also
performed above the level we had achieved prior to the Bank of Japan’s introduction of negative interest rates in fiscal
2015, and we recorded our highest profits since our introduction of the in-house company system in fiscal 2016.
In customer divisions, our support for clients’ cash flow needs during the COVID-19 pandemic and our retailinvestment business were both robust, and the profitability of loan spreads and other business outside Japan
improved. We were also able to capture the activity of primary markets for corporate and other bonds, mainly in Japan
and North America. Our response to financing demands throughout the pandemic has further strengthened ourrelationships with our clients and enabled more active dialogue with their senior management. Our efforts have also
led to business strategy deals based on new forms of partnership with large corporate clients, replacing crossshareholdings as the basis of the relationship.
In markets divisions, our banking business accumulated carry income, mainly from foreign bonds, to improve revenue
quality. Our sales and trading business successfully expanded product offerings with a focus on North America, aneffort that had been ongoing for some time. The business also captured client flow trading during the rise in volatility
caused by the COVID-19 pandemic, leading to strong performance.
As for expenses, we were able to off-set the increases from amortization of the core banking system and investment infocus areas by steadily moving forward with our reforms reflecting structural changes in customer needs. Both the
improvement of our revenue during the fiscal year and the steady strengthening of our fundamental earnings power,
focused on stable revenue, indicate we are seeing positive results. Credit-related costs remained within the range ofinitial estimates, even as we prepared for the future by recording reserves from a forward-looking perspective. Profits
also increased in comparison to the previous year.
In fiscal 2021, we will continue building firm foundations for achieving the effects of our structural reforms during thesecond half of our 5-Year Business Plan and for ensuring future growth. Under the prolonged COVID-19 pandemic, wehave again been reminded of the importance of demonstrating our stable business operations and financial intermediaryfunctions to uphold our social responsibilities as a financial institution. In addition to this, we will assess changes in the5Mizuho Financial GroupOn that note, our deep understanding of our customers is what enables us to go beyond the conventional boundaries
of finance. In the case of our retail customers, this is our ability to offer advice tailored to each individual’s personalgoals and life plans in an age of longer lifespans. In the case of our corporate clients, this is our industry insight,
including cross-sector insight, and our expertise in building convincing corporate and business strategies. In May
2021, we reorganized our branch network to have separate operational frameworks for retail customers and corporateclients, establishing a structure for responding to customers’ unique needs in a more specialized way. In addition, we
reorganized our industry-specific operational frameworks for banking and securities, which serve large corporateclients, into five industry groups composed of industries with mutual affinities. As our clients shift to businessstructures spanning multiple industries, we will also further enhance our perspective on inter-industry activity andfurther advance our business model as a financial services group.
For example, we will sharpen our insight both into individual industries and inter-industry activity and further cultivate
our dialogue with the senior management of large corporations. Leveraging our research and consulting functions, wewill discuss with our clients the post-COVID-19 business challenges of business structure transformation and new
business expansion and offer them support from the strategy design phase, standing upstream, so to speak. By
holding these discussions with an eye to how we can assist in turning such strategies into action, we will also be able
to provide optimal financial services when our clients come to the implementation phases of their strategies. Drawing
on our collective strength will enable us to positively contribute to our clients’ entire value chains, from strategy
formulation to implementation, and develop partnerships that go beyond providing simple financial services.

Message from theGroup CFO
Our strategies forcreating value

It will exercise such non-financial capabilities not only in providing consulting services directly to clients but also insynergizing with our in-house companies’ strategies to create and capture new value chains across the financial andnon-financial spectrum. Further, it will apply these non-financial capabilities to new business arising from open
innovation with external partners.

Foundations for our
corporate value

Regarding the medium- to long-term businessenvironment, the significant changes taking
place make it likely that our customers’
needs, including their latent needs, willfurther diversify going forward. The nonfinancial capabilities which complement our
financial capabilities will be one key way ofdifferentiating Mizuho from our competitors.
In April 2021, we established Mizuho Research& Technologies, which consolidates andintegrates our research, consulting, and IT
development into a single core groupcompany for non-financial functions. Mizuho
Research & Technologies has knowledge andexperience in consulting and IT implementation in the fields of digital transformation and sustainability transformation.

Data section

business environment, pursue revenue
potential in a flexible manner, and steadily
move forward with our structural reforms.

About Mizuho

Message from theGroup CEO

Message from the Group CEO

Appendix

These sorts of insights can also be helpful to our clients outside Japan. We are currently accelerating our Global 300
strategy of developing high-level relationships with the senior management of international corporations. Along with
our network of offices in Asia and our base of Japanese corporate clients, our industry insight has been a greatstrength in sharing business strategy with our clients worldwide.
While leveraging our non-financial capabilities to deepen our differentiation in select domains, we are also continuing
to pursue new business. One example is our strategic partnerships with tech companies in industries such as IT andcommunications. Separately from our strategic partnerships, we are also already embarking on new business ventures
inspired by our own employees’ ideas.
These assorted initiatives are one way we are strongly differentiating ourselves from our competitors in responding toour customers’ changing needs in the pandemic and post-pandemic eras. We will connect them to our creation ofvalue going forward and continue making steady progress towards achieving our business plan.
Integrated Report 2021

6

Message from the Group CEO

Making sustainability a core part of Mizuho’s brand
The global trend toward sustainability is an irreversible structural change. Within this trend, climate change is a crucial
global issue which threatens to impact the stability of financial markets, an issue which we see as requiring action
from society, our customers, and ourselves.
At Mizuho, we are approaching sustainability as a core part of our strategy. In particular, in light of the external businessenvironment, we have identified key sustainability areas (materiality) based on society’s expectations in these areas andtheir importance for Mizuho, and we are incorporating these into specific initiatives in the course of formulating
business strategy and targets at in-house companies and units, while also taking risks and opportunities into account.
Our basic approach to promoting sustainability is dialogue, also known as engagement. There are multiple reasons for this.
For example, the transition to a low-carbon society has been drawing greater attention recently, and in our
relationships with clients who are facing issues in this regard we have been focusing on engagement rather thandivestment. In other words, we are not simply considering whether or not to reduce our credit exposure. We are first
holding dialogue with clients across multiple sessions, driven by a constructive purpose, as a way of working together
with them towards a low-carbon society. That is the approach we have chosen.
Here as well our non-financial capabilities are key to differentiating Mizuho. We apply our understanding of industry
characteristics and of our clients to this dialogue, our experience and knowledge in sustainability transformation to thedevelopment of decarbonization roadmaps, and our financial functions to support for specific initiatives. In doing so
we are utilizing our support functions from upstream to downstream in order to both create business opportunities
and enhance risk management.
There are other reasons for engagement: dialogue with a wide range of stakeholders and improvement of disclosure.
In June 2021, we published our second TCFD Report. Over the last year, we have revised our Environmental Policy toclarify our support for the objective of the Paris Agreement, enhanced our environmental management in our
financing and investment activity, produced estimates as a first step towards measurement and management of Scope
3 emissions, and strengthened our environmental and social management of our suppliers, among otheradvancements. By proactively disclosing such information, we are promoting dialogue with all of our stakeholders.
We will continue to promote sustainability as part of our strategy going forward, with the aim of becoming our clients’
primary partner for sustainability consulting. In our dialogue with stakeholders, we will gain their understanding andwork with them together towards decarbonization. By establishing sustainability as part of Mizuho’s brand, we will
positively contribute to the sustainable development and prosperity of the economy, industry, and society both inJapan and around the world and to environmental conservation, in turn positively contributing to the achievement of
the Sustainable Development Goals.

Continuous enhancement of our people and organization
Our people are an absolutely vital aspect of the implementation of these strategies. Personnel who have a range ofexpertise and can be relied on by customers are indispensable. In our HR strategy, we are putting in place a foundation
for development, evaluation, compensation, workplace environments, and flexible work styles which enable all of ouremployees to fully maintain their health and safety, expand their areas of responsibility in line with their expertise, andachieve professional growth. We are also further accelerating diversity and inclusion, such as women’s advancement,so that all employees are able to take pride in their work, exercise their abilities to the utmost, and improve
productivity.
Under our HR management, we are supporting career development while placing emphasis on areas of expertise,allowing employees to experience related divisions, such as the IT systems and customer divisions or the products
and industry research and customer divisions, in a cross-divisional fashion. We are also more proactively hiring midcareer professionals in an effort to bring in new perspectives. Personnel evaluations have changed over to a dialogue
format and are encouraging independent action and growth on the part of each employee.

7Mizuho Financial GroupThis HR strategy and management will enable our employees to have a strong commitment to developing themselvesin order to move forward in step with our customers and society. Simultaneously, we are endeavoring across thegroup to further enhance our ability to act as a unified organization not limited by rules and the scope of duties.

Message from theGroup CEO

Message from the Group CEO

In conclusion: Continuous growth, together with our customers and society
For our customers and society, fiscal 2021 is a critical year to determine the path to recovery from the COVID-19
pandemic and to carry out overarching structural changes oriented towards the post-pandemic era. It is also the thirdyear of our 5-Year Business Plan, an important year for us to steadily deepen our ongoing initiatives, enhance ourpeople and organization, and connect them to continuous growth.
We will become an even more essential and reliable partner, striding into the future in step with our customers andsociety. All of us will put forth our best effort to pursue these objectives as a united group. We appreciate yourcontinued support and understanding and will do everything in our power to exceed your expectations.

Message from theGroup CFO
Data section

July 2021

Our strategies forcreating value

Within Mizuho are a number of business segments, each with their own roles and expertise. Some of these depend on
trial and error, and others depend on steady and reliable operations. Through our initiatives, every one of ouremployees will renew their day-to-day perspective and dedication for our customers and society, while fully
accounting for their business segment and the nature of their work, and apply these to maintain consistently swift
operational management. I will lead these efforts and ensure they take root throughout the organization.

Foundations for our
corporate value

We will also review our internal rule-making and our everyday communication methods. For example, we will instituterules to positively assess constructive proposals and recommendations rather than negatively assessing
administrative mistakes. We will consider a “discussion-first” communication style founded on sharing the overallsituation and discussion points prior to preparing comprehensive and precise documents.

About Mizuho

This requires transformation in behaviors. In tandem with introducing mechanisms to reinforce horizontal, vertical, anddiagonal communication and raise our ability to act as a unified organization, we will strengthen the effectiveness of our
in-house company system and our system for dual-hat assignments between Mizuho Financial Group, Mizuho Bank, and otherentities. An example of this within executive management is our integrating the senior managing executive officer andmanaging executive officer levels to simplify the vertical layers of the organization. For employees, we will create mechanismsthat allow for easy communication on a daily basis—and urgent communication when required for emergencies—between
branches, branches and Head Office, and departments within Head Office, and we will allocate personnel for this effort.

Member of the Board of Directors
President & Group CEO

AppendixMizuho Financial Group, Inc.

Integrated Report 2021

8

Identifying the cause of IT system failures at Mizuho Bank andpreventing further incidents
We sincerely apologize to our customers and other affected parties for significant disruptions caused by the series of IT
system failures which occurred at Mizuho Bank.
The Mizuho group has experienced three major system failures up to now—in April 2002, March 2011, and the latest
situation—with significant disruptions affecting customers and society more broadly. We are keenly aware of the needto take steps overall as an organization to fundamentally prevent further incidents so that this type of situation does not
happen again.
To ensure that our customers can reliably engage in transactions with Mizuho Bank, Mizuho Financial Group and
Mizuho Bank will pursue efforts as an overall organization to strengthen multilayer responsive capabilities in the eventof system failures by bolstering initiatives concerning IT systems and response to customers & crisis management andintegrating these activities dynamically and cross-divisionally with the aim of preventing further incidents. These actions
will be based on thorough reflection on past system failure incidents and of recommendations from the System Failure
Special Investigative Committee, which was established on March 17, 2021 to ensure that the issues which occurred inthis recent incident are addressed in a fundamental and sustainable way.

1. Summary of incidents
The latest situation involved four system failures over a short period of time, specifically occurring on February 28,
March 3, March 7, and March 12 of 2021.

(1) February 28
Due to implementation of e-account bulk change processing for the Mizuho e-account service on February 28, 2021,
the final Sunday of the month, all update processing involving access to the time deposits system was disabled, andthis led to retention of bankbooks and cards in ATMs that accessed this system and prevented transactions involving
time deposits in Mizuho Direct, an online banking service. The impact of these errors widened and led to closures ofATMs and subsequently Mizuho Direct processing sections. This triggered many errors in ATM transactions and otheractivities besides time deposits and numerous instances of ATMs failing to return inserted bankbooks and cards.
This system failure affected customers through (1) suspension of ATM operations (as many as 4,318 machines), (2)retention of inserted bankbooks and cards at ATMs (5,244 cases), and (3) disabling of some ATM and Mizuho Directtransactions.
Regarding the retention of bankbooks and cards, despite the recovery and return of some bankbooks and cards via
remote operation from the ATM monitoring locations and via the direct involvement of security companies and branch
employees, it was difficult to respond sufficiently, and since February 28 was a Sunday too, numerous customers wereunable to retrieve their bankbooks and cards from ATMs for a lengthy amount of time. It was only possible to return
retained bankbooks and cards on the same day in 1,244 cases, and returns for up to 5,152 cases took until March 7, a
week after the date of the system failure, and returns for all cases required until April 22.

(2) March 3
On March 3, 2021, a network card in network equipment at a Mizuho Bank data center failed, and this problem
destabilized communications for three minutes until the switch to a network card in a different system. Impacts during
this period were (1) retention of inserted bankbooks and cards at ATMs (29 cases) and (2) partial failure in Numbers
Lottery ticket purchase transactions via ATM or Mizuho Direct service (7 cases).

(3) March 7
On March 7, 2021, when Mizuho Bank released a program related to consumer loan products, errors occurred related
to consolidated account time deposits because of a mistake in said program’s design.
Customers who experienced failed time deposit transactions via ATMs or Mizuho Direct service received notificationof the system failure and failed transaction and an explanation of the circumstances. We temporarily suspended sometime deposit services at ATMs with the aim of preventing ATMs from retaining bankbooks and cards.

9

Mizuho Financial GroupThe System Failure Special Investigative Committee conducted a detailed cause analysis of the various events andbroadly reviewed not only system failure cases from 2002 and 2011 but also other system failures to investigate past
incidents and identified common points with the latest occurrences.
The Investigative Report cites deficiencies in the following areas as causes of the latest series of system failures: (1)Organizational capability to respond to crisis situations, (2) IT system management (reassignment of IT personnel,
preparedness to ensure stable IT system operation, and points in common with the cause of past system failures),and (3) Focus on the customer's perspective (awareness of issues regarding the ATM bankbook and card capturing
mechanisms, consideration of customers’ interests in regard to the response to the failures, sensitivity to the needsof ATM users). Additionally, it stipulates an underlying cause of (4) Underlying conditions or corporate culture thatprevents straightforward improvement of these issues. These are the primary issues the report identifies that should
be addressed through measures to prevent further incidents.
We think these points offer important guidelines that the Mizuho group should reflect into its efforts to prevent further
incidents.
We accept our responsibility for the series of system failures and have clarified where responsibility lies. (Asannounced on June 15, 2021).

3. Efforts to prevent further incidents at Mizuho Financial Group and Mizuho Bank
Considering the cause analysis presented by the System Failure Special Investigative Committee, Mizuho Financial
Group and Mizuho Bank think it is necessary to go beyond just surface-level and formal actions in our efforts toprevent further incidents and aim to enhance our multilayered system failure response capabilities as an overall
organization with awareness of customer convenience and social infrastructure stability through ensuring thathorizontal and vertical communication are conducted effectively (including branches and Head Office).
In essence, we intend to build frameworks to strengthen system failure response capabilities in a multilayered way forthe purpose of preventing system failure occurrence and ensuring early detection and recovery if failures do occur in
the IT system divisions, in addition to ensuring early detection of system failures and efforts to minimize the impact
on customers in the divisions responsible or responding to customers and crisis management. We also plan to build
a multilayered defense framework that minimizes impact on customers in the event of a crisis by centrally managing
the abovementioned functions flexibly. This will be achieved through contingency planning on both the IT system andbusiness side involving training drills, organizational preparation, personnel, and other aspects.

About Mizuho
Message from theGroup CFO

2. Cause analysis

Our strategies forcreating value

Considering the occurrence of four system failures in a short period of time, we realize the need to identify the root
causes in the group’s organization, based on a thorough review of the events that occurred this time along with thebackground and causes of past situations and measures taken to address them, and implement fundamental andsustainable measures to prevent further incidents.

Foundations for our
corporate value

Due to this incident, 263 transfers to other domestic banks did not meet the deadline for March 12 and 761 foreign
currency transfers did not complete deposit notification processing during the same day. Regarding transfers,
negotiations took place with the receiving banks, including the deposit date, premised on Mizuho Bank handling theback-value costs. For transfer recipients, Mizuho Bank contacted receiving parties to confirm their view of the deposit
date and confirmed completion of all deposits as of March 31.

Data section

Late at night on March 11, 2021, failure of communications control equipment within storage equipment in MINORI’s
common platform shut off communication between the storage equipment and server and thereby halted businesssystems running on the affected server. This resulted in mainly delays in foreign currency transfer processing.

Appendix(4) March 12

Message from theGroup CEOIdentifying the cause of IT system failures at Mizuho Bank and preventing further incidents

Additionally, we intend to pursue continuous enhancement of our people and organization from the perspectiveof ensuring the efficacy of this multilayered system failure response capability and fundamentally resolving rootissues throughout the entire organization that lead to issues in our IT systems and response to customers & crisis
management.
Integrated Report 2021

10

Identifying the cause of IT system failures at Mizuho Bank and preventing further incidents(1) IT systems
We will aim to establish operations that suitably address MINORI’s characteristics by assigning highly capable
personnel and ensuring organic collaboration within and among organizations.
i. ATM specification changes and hardware equipment updatesii. Improvement of the monitoring system and revisions to the collaboration framework between IT systemdevelopment and operation divisionsiii. Implementation of a comprehensive inspection related to MINORI· Reassess risk in the portion of MINORI services and functions that have never been used (6% of the overallsystem)· Conduct a mock test by intentionally causing system errors with the potential to be severe failures in the test
environment and confirm the ripple effects and countermeasures
iv. Enhancement of IT system division training drills focused on system failures
v. Visualize staff portfolios and enhance organizational controla) Visualization of staff portfolios and personnel reassignment
		 · Consolidate a detailed list of skills and experience for personnel and assign suitable personnel (including
external hires)b) Improvement of organizational preparation
		 · Create an IT Infrastructure & Project Management Department to oversee technology and quality mattersc) Improvement of system development and maintenance management capabilitiesd) Reinforcement of IT system risk control and internal audit operations(2) Response to customers and crisis management
We will continuously apply a customer-focused perspective for the overall organization during crisis situations and innormal times.
i. Establishment of organizational capabilities to ascertain customer views and utilize them in our initiatives· Assign a service quality improvement officer at all retail branches· Create an organization within Head Office to analyze social media and other sourcesii. Establishment of operations and preparation for emergencies during normal times with consideration of impact on
customers and settlements· Group the detailed business contingency plan (BCP) into about 30 important business areas and integrate it withthe system contingency plan (SCP) in light of various system diagrams to facilitate utilization from a customer
perspective in the event of a system failure· Implement not only a conventional procedure confirmation process but also a realistic assessment of customer
impact in drill exercises and training· Ensure rapid information collection capabilities in emergencies by building cross-divisional personnel networks
by service type in normal times· Convene a meeting within one hour of detecting a system failure as a general rule and ensure prompt discussionof the initial response policy
iii. Assign an executive officer in charge of crisis management and strengthen crisis management capabilities
including at the executive level(3) Continuous enhancement of our people and organization, in step with our customers andsociety
We recognize the need to strengthen our people and organization from the perspective of enhancing and increasing
the effectiveness of multilayered system failure response capabilities through horizontal and vertical communication.
In particular, we believe it is necessary to further strengthen organizational action that goes beyond rules andindividual scopes of responsibility in addressing issues within our IT systems and response to customers & crisis
management, and in light of the latest system failure incidents we believe this should be addressed as a challenge forthe organization as a whole.
i. Enhancement of our people and organizational capabilities· Enhance our people and organizational capabilities company-wide with personnel development and organizational
measures in the areas of IT systems and response to customers & crisis management as well as through proactive
utilization of specialists with broad viewpoints
		 Design a framework to promote cross-divisional career development in related divisions and hire externally		 I mplement personnel performance reviews, with emphasis on feedback, that promote employees’ self-directedbehavior and growth11

Mizuho Financial GroupTo reliably and rapidly implement the above-mentioned system failure response measures, we established the System
Failure Improvement Promotion Committee headed by Mizuho Financial Group and Mizuho Bank president and CEOs.
From a management supervision standpoint, Mizuho Financial Group has already established the System Failure
Response Evaluation Committee comprised of only outside directors. It intends to shift the role and objective of
this Committee from “cause discovery and assessing the suitability of measures to prevent further incidents” to“supervising the implementation of measures to prevent further incidents” and continue addressing the recent
incidents. Additionally, Mizuho Bank, which is the entity implementing the full range of prevention measures, hasestablished a similar committee comprised of outside and internal directors.
In order to meet the expectations of our customers and stakeholders, we will reaffirm our role as a financial institution
and ensure that all members of the organization work together with commitment and responsibility toward preventing
further incidents and connect these efforts to Mizuho’s continuous growth.

About Mizuho
Message from theGroup CFO
Our strategies forcreating value

Mizuho Financial Group and Mizuho Bank plan to have their executive management clarify what should be targetedin the measures to prevent further incidents of IT system failures to ensure efficacy and continuity in light of theirfundamental roles and responsibilities and involve all executive officers and employees in the pursuit of these goals.
· Recognizing the seriousness of the recent system failure incidents, Mizuho Financial Group intends to formulate
basic policies for the group (group-wide HR system operations, IT system failure training drills basic policy, etc.),
allocate necessary corporate resources, and horizontally deploy actions at other group companies related to therecent system failures from the standpoint of ensuring suitable operations as a group. As Mizuho Bank’s managing
company, Mizuho Financial Group also plans to manage and supervise progress at Mizuho Bank in regard tomeasures to prevent further incidents.
· As the entity with jurisdiction of MINORI and which is in charge of development, operation, and managementof the system in addition to being a provider of a variety of financial services to customers under Mizuho
Financial Group management, Mizuho Bank aims to strengthen multilayered system failure response capabilities
with the goal of ensuring efficacy from the customer perspective in the full range of the above-mentioned
prevention measures through rigorous implementation within frontline operations, including at group companies(outsourcing partners), and will promote cross-organizational knowledge retention through continuous drill
exercises and training.

Foundations for our
corporate value

4. Stance in future efforts

Data section

Each of these measures to prevent further incidents has been evaluated by the Special Investigative Committee tobe formulated from a multi-angle and comprehensive perspective, and to be effective as a means of preventing
reoccurrence of the recent incidents. However, the Committee advises that it is not enough to change the organization,
rules, and procedures superficially and formally, but rather it is essential to also ensure the effectiveness andcontinuity of the measures. All members of executive management are committed to taking action in line with thisvaluable advice.

Appendix

		 S
 implify layers in the organization including integration of executive-level ranks within the group (Mizuho
Financial Group: Abolish senior managing executive officer and managing executive officer roles)· Steadily promote structural reforms while continuing to carefully assess allocation of necessary corporate
resources repare a personnel and expenses budget in advance in fiscal 2021 with a plan for 160 people, ¥8 billion in		 P
expenses, and ¥10 billion in investment
ii. Transform behavior· Introduce various frameworks, such as promoting communication from the standpoint of bolstering organizational
action (through these initiatives enhance the efficacy of existing operational frameworks, such as the in-housecompany system and dual hat system between group companies)
		  Shift from communication centered on documentation to “discussion first” communication		  Proactively assess constructive proposals and recommendations rather than negatively assessing administrative
mistakes		  Assign “branch communicators” and “Head Office instructors” and build a network

Message from theGroup CEOIdentifying the cause of IT system failures at Mizuho Bank and preventing further incidents*This section is based on the June 15, 2021 press release from Mizuho Financial Group and Mizuho Bank titled “Identifying the cause of IT system failures at Mizuho Bank andpreventing further incidents”.

Integrated Report 2021

12

Dialogue between the Chairman of the Board of Directors
and the Group CEO

Progress towards achieving continuous growth:Mizuho’s role in society as a whole and our strategic priorities
Chairman of the Board of Directors Izumi Kobayashi sat down with Group CEO Tatsufumi Sakai to reflect
back on fiscal 2020 and discuss the role of finance and Mizuho in society as well as our progress towards
achieving continuous growth.

Member of the Board of Directors

Tatsufumi Sakai President & Group CEO

Chairman of the

Izumi Kobayashi Board of Directors

Looking back on fiscal 2020
Kobayashi I recall that when I was appointed to Mizuho’s Board of Directors in 2017, the main priority was how toenhance capital and earnings power. In 2019 with the launch of the 5-Year Business Plan, at a time when the shape offinance was greatly evolving, Mizuho was resolving on its next step while also improving its capital and earnings
power. Then, as we entered fiscal 2020, we were unexpectedly faced with the pandemic and our major concern waswhether it would truly be possible to achieve the objectives of the 5-Year Business Plan. Now, as we reflect on the
results, there are two major points to note.

The first is the role that finance plays in society. In particular, the pandemic has prompted us to reaffirm the importanceof financial institutions’ traditional role. It was clear that it acted as a major support structure during this tumultuous time.
The other point is that Mizuho’s results for fiscal 2020 exceeded the initial estimates in the 5-Year Business Plan. Thisis due to the steady progress on reforms which were an organization-wide focus, including efforts to strengthen
corporate foundations. This is not only my belief but also that of the other directors.
Sakai
As you mentioned, in formulating the 5-Year Business Plan we were aware of the need to constantly update
ourselves amidst structural changes in the business environment, and so we decided to implement structural reforms
in three areas—to our business model, the corporate foundations that support it, and finance. In fiscal 2019, the firstfiscal year of the plan, I would say it went well overall. Fiscal 2020 was a crucial point at which our overall initiatives
would finally take root. Of course the pandemic occurred just at that moment, but there are also two points I would
like to reflect on regarding fiscal 2020.

The first is that structural changes have only accelerated as a result of COVID-19. Looking ahead to the post-COVID-19
era, we are beginning to see a variety of developments and changes to megatrends which are particularly impactful
on our business, such as digitalization, an aging population and declining birthrate, and globalization.

13

Mizuho Financial GroupBringing prosperity to society: Mizuho’s expected role
Sakai
The major trend towards sustainability has also been affected by COVID-19 and a wide range of themes are
becoming apparent. Sustainability is linked to the underlying issue of the expansion of economic disparity and social
inequity, as well as to geopolitical issues and the destabilization of the global order. Under our 5-Year Business Plan,
we are directly addressing these facets of the global agenda.

As global interest in the environment and climate change is rising significantly, governments around the world arestrengthening their response, including Japan which has pledged to become carbon neutral by 2050. Sustainability is
now one of the top priorities for corporate management. At Mizuho, when we discuss management and businessstrategy with our clients, sustainability is the first thing we consider.
We want to deliver benefits to our customers and other stakeholders, as set forth in our Corporate Philosophy andembodied in the name Mizuho, which evokes images of a “bountiful harvest of rice” in Japanese. We have built in to
our strategy a range of sustainability issues and challenges in order to minimize risk and maximize business
opportunities, an approach which has points in common with the thinking behind stakeholder capitalism, a concept
which has been gaining traction recently.
Kobayashi Yes, sustainability is built into Mizuho’s business and is at the core of its growth model. And the success ofMizuho’s business activities brings prosperity to society. I think that all executives, regardless of the industry orcompany, are currently grappling with how to synchronize and synergize sustainability with their business and make ita source of growth for their company and of benefit for their stakeholders. This is what newly emerging businessmodels seek to achieve. In this regard, Mizuho has taken the initiative in building such a business model and has been
conducting dialogue with its clients since the early stages. My impression is that, as a result, a wide range ofstakeholders now have an understanding of Mizuho’s thinking and business model. As sustainability is becoming
even more crucial, cooperation and collaboration with stakeholders is likely to become easier to pursue.

About Mizuho
Message from theGroup CFO
Our strategies forcreating value

Kobayashi Exactly, Mizuho was able to transition the role it should fulfill as a part of the social infrastructure, forexample by switching the anchor of a client relationship from cross-shareholdings to quasi-equity financing. I think
this was a year in which we began to see the emergence of a single next-generation model for financial services
unique to Mizuho as the company leveraged its capabilities in digital, fintech, industry insight, and other areas.

Foundations for our
corporate value

All members of the organization around the world came together through these efforts to realize our strategic
initiatives, and this enabled us to enhance our fundamental earnings power.

Data section

For example, providing quasi-equity financing as a strategic domain within our business targeting large corporations. Whenclient demand was suddenly rising due to the effects of the pandemic, we fully leveraged our understanding of clients’businesses and our industry insight in order to not only support clients’ cash flow needs but also to support them in termsof capital where necessary. I think that among financial institutions, our reaction was especially swift. By supporting
companies in their time of need, we deepened our relationships with clients and further accelerated our strategic initiatives.
These efforts formed a new foundation for our relationship with our clients, and with their understanding, we were able to
make more progress than expected on reducing cross-shareholdings, including those held in our retirement benefit trust.

Appendix

The second point is that, as you mentioned in regards to the role of finance, amidst all these changes there are somethings that remain constant, and the true value of financial institutions is one thing that has been reaffirmed. I believethat financial functions which serve as a lifeline for corporations and people’s lifestyles are a true form of lasting value.
There was an urgent and large-scale rise in demand for financing outside Japan during the January to March periodof 2020 and in Japan during the April to June period of 2020; however, unlike the 2008 global financial crisis, thefinancial system remained robust. At Mizuho, early on we recognized that this was a time for us to commit to returning
to our fundamental mission and fulfilling our role as a financial institution. We were also able to use this as anopportunity to advance our transition to the different business models which we had envisioned.

Message from theGroup CEO

Dialogue between the Chairman of the Board of Directors and the Group CEO

On the other hand, I think that a customized approach to sustainability on the frontlines of our business will be an
important task going forward. Currently, there is a movement towards creating a globally consistent standard forevaluating sustainability, but sustainability can intrinsically vary depending on the natural environment and social
environment in each country or region, so it is not necessarily globally homogenous. The thinking is that, even when
Integrated Report 2021

14

Dialogue between the Chairman of the Board of Directors and the Group CEO

aimed at the same goal, sustainability initiatives may differ between countries and regions, and ultimately form acycle that is positive on a global basis. In that sense, it is essential for employees on the frontlines to proactively think,act, and deliver in line with what is best for their local environment and society in order for Mizuho to bring prosperity,
as you mentioned. This is especially challenging, but that is why it is worth accomplishing.
Sakai
Although there are common global goals such as those in the Paris Agreement, the steps taken to achieve themwill vary depending on economic and social circumstances and values, or on access to resources and other such factors.
There will also be differences in industrial policy, including energy policy, and in corporate action. With this in mind, we
can enhance the steps toward and feasibility of reaching these common global goals through a harmonious approach. I
think that a customized approach to sustainability, as you mentioned, can be a source of added value for Mizuho.
Kobayashi Certainly if you consider sustainability in terms of a product-oriented or market-oriented philosophy, a “onesize fits all” product-oriented approach does not work. A customized approach containing multiple traditionallyrecognizable elements is the most easily accepted, and each client requires advice and solutions that fit the social
environment they operate in. I think that Mizuho has a major role to play in that respect.
Sakai
With a firm understanding of the many variances between different countries and regions, we aim tosupport industry and business transformation which is both feasible and aligned with the local economy and society.
As for Mizuho, we are drawing on our research and consulting capabilities as well as industry insight to communicate
with our clients’ executive management, relevant authorities, and others in order to act as a catalyst. We will start tofurther develop these initiatives going forward.
Kobayashi I think that Mizuho can fully utilize the value it has built up in order to differentiate itself. In terms of
securing both its own value and stakeholders’ understanding, I think Mizuho is in a good position and can focus on
non-financial value and fully leveraging it in order to transform business models.

Also, in terms of the connection between a prosperous society and business development, I think there are more waysthat Mizuho can contribute indirectly. For example, in the sense of bringing prosperity to each individual, including
those who are not Mizuho customers, Mizuho’s role is not limited to direct finance but includes contributing to thesound development of companies, which is a vital element of a stable society. A kind of virtuous cycle can be formed
as Mizuho provides services and shares knowledge, in addition to finance, through a range of channels.
Sakai
We are not only providing funding, products, and services but also support with a human touch. We also
facilitate corporate networking, including assisting innovative startups and providing business matching, which is one
aspect of our “Open & Connected” action principle. Using the channels and networks we have formed from financialtransactions, we support clients’ new business development, as you mentioned, and this in turn plays a role in job
creation within society. Our role is to be a supportive presence for our clients and society from multiple angles basedon our trustworthiness and reliability.
Kobayashi From the perspective of ensuring that Mizuho remains just such a presence, the issues brought to the forefront by
the recent IT system failures are important to address. Apart from IT related issues, what I feel is that the organization has yet
to fully utilize the diversity of its people. I am not referring only to diversity in terms of gender, nationality, or similar but also to
the unique qualities of each individual, their areas of specialty versus
areas of inexperience, or in other words diversity of perspective. I
believe that Mizuho is strong when everyone is working together
towards a shared objective. However, when something irregularoccurs, Mizuho is weak when it comes to exercising the capabilities ofthe organization by ensuring each individual looks at the issue fromdifferent angles and acts independently. Of course, this is not
something that can be completely changed within a year or two. It isnecessary to steadily and repeatedly affirm the need for change within
the organization as well as to make it a habit for executive management
to always consider how meaning can change when something isviewed from a different angle. Mizuho has many strengths, including in
non-financial areas, and whether these strengths are put into practicedepends on the capabilities of its people. Leveraging Mizuho’s diversity
will surely draw out the organization’s strengths.

15

Mizuho Financial GroupAchieving continuous growth
Kobayashi Mizuho’s strategies and its ability to realize them as well as its financial situation are both at a level where
we can hold a certain degree of confidence. Its central role in society has become clearer as a result of the pandemic.
The areas where Mizuho still has work to do and must make a greater effort have also become clearer following theseries of IT system failures. If consistent progress can be made in regards to these three areas, I believe that Mizuho
can truly become stronger as an organization as well as in terms of its business model.

In the remaining three years of the 5-Year Business Plan, enhancing the organization and its people must be a priority,
in addition to achieving financial performance goals. By facing and overcoming this challenge, Mizuho can build atruly robust foundation for the years beyond the end of the current business plan. 2021 will be the year to prove this.
In terms of Mizuho’s social mission, amidst the pandemic we are not only being tested in terms of financial capabilities
but also on whether our services are truly useful to society. The remaining three years of the 5-Year Business Plan will
surely be very challenging and a crucial juncture for Mizuho, but also a period with a lot to look forward to.
Sakai
In order to achieve continued growth within the current environment, we must ensure a win-win
relationship with our stakeholders. To accomplish this, we not only need to become stronger from a fiscal perspective
but also enhance and fully draw on our financial and non-financial capabilities through our expanding role in society.
In doing so, we can deliver benefits to our stakeholders as embodied in the name “Mizuho” and its original meaning.
We need to reconsider the role we have fulfilled thus far and concretely determine what we want to achieve going
forward. In step with our customers, society, and our employees, we can work towards future continuous growth.
Thank you for taking the time to share your thoughts with me today.

Integrated Report 2021

About Mizuho
Message from theGroup CFO
Our strategies forcreating value
Foundations for our
corporate value

Sakai
There are many such initiatives we would like to implement going forward. As you said, the organizationand its people, as well as corporate culture, are things that cannot change overnight, but encouraging confidence andfostering enjoyment, as well as diverse perspectives and a willingness to see things from a different angle, these arechanges that I will work to effect within the organization.

Data section

Kobayashi What is important is that each employee is motivated day-to-day, in a certain sense, simply by enjoying
their jobs. There are many potential sources for this enjoyment—being thanked by a customer, being the one to solve
an issue that everyone was struggling with, or feeling the value that one brings to the organization, which creates
confidence. And when members of the organization are enjoying themselves, customers will feel this enthusiasm too.
What is important is to create an environment where being a part of this company is enjoyable and each individual
can consider how to approach their work in a way that makes it enjoyable. I believe this can be a catalyst fortransforming the organization. I hope you will foster that kind of environment.

Appendix

Sakai
I strongly feel that we must reflect on the lessons
learned from the IT system failures and become a more robust andresilient organization so that in the future our customers, the public,
and our employees will look back on this moment as a catalyst
which transformed Mizuho. To realize this, the basic foundation forour efforts is to enhance our people and organization, and diversity
in the broader sense is a necessary part of this. As we move
forward with a range of initiatives, with the aim of better
understanding our customers and society we will seek toproactively develop a broader perspective of our ways of doing
things and our role, in part through utilizing externally hired talentand enabling each individual to consider a range of perspectives
and to move in the directions that seem most promising. As for our
objectives in terms of diversity, there is no single answer and it is
not something executive management can simply give orders on.
We will create a variety of frameworks enabling executive management to encourage and support the efforts of eachmember of the organization. As a result, all employees will be able to take the initiative, further align themselves withour customers and society, adopt a more positive approach, and move forward with confidence and pride. Together,
executive management and employees can foster this kind of organization and corporate culture.

Message from theGroup CEO

Dialogue between the Chairman of the Board of Directors and the Group CEO

16

About Mizuho

Mizuho’s journey

Always standing at theforefront of our time,
trailblazing is in our

The Dai-ichi Bank
(photo: National Diet Library)

DNA

1873

1880

1902

The Dai-ichi
Kangyo BankThe Fuji BankThe Industrial
Bank of Japan1873 Establishmentof The Dai-ichi
Bank, 1971
Establishment of
the Dai-ichi Kangyo
Bank through amerger with Nihon
Kangyo Bank

Yasuda Bank
(photo: National Diet Library)1880 Establishment
of Yasuda Bank,
1948 Changed to
The Fuji Bank

(photo: The Mainichi)

1902 Establishment
as a public sectorbank that not onlyoffers long-term
funding but also
securities and trust
banking services

2003
Establishment of Mizuho Financial Group
Establishment of Mizuho Trust & Banking
Merger with Mizuho Asset Trust & Banking

1999

2010

Merger of our threepredecessor banks

2007

2008

European debt crisis

Global financial crisis
リーマンショック発生

Sub-prime mortgage
crisis
サブプライ
ムローン問題発生

2004
Banks are permitted to act as銀行に証券仲介業務が解禁
securities brokerages
Establishmentofthe
産業再生機構設置
Industrial Revitalization
Corporation of Japan

2003

2002
2000
Establishment of Mizuho
Holdings

17

Mizuho Financial Group

Establishment of Mizuho Bank andMizuho Corporate Bank

2005

2006
Completion of public fund repayment
Listed on NYSE

2010

Announcement of businessstrategy: Channel to Discovery
Plan

Announcement of medium-term
policy: Mizuho’s Transformation
ProgramAiming to be a financial partner that helps
customers shape their future and achieve
their dreams

Aiming to be the most trusted financial
institution by its customers in and outside
Japan by focusing on the core functionof contributing to social and economic
development

Message from theGroup CEO

Mizuho’s journey

2011

2014

2019

Transition to a Company withThree Committees model of2017
corporate
米国でトランプ政権発足2020
governance
2016

2015
2013
2011
東日本大震災発生

2011

Great East Japan
Earthquake

COVID-19 pandemic

2016
2015

日銀が｢量的･質的金融緩和」導入

2013

日銀がマイナス金利政策導入

Bank of Japan introduces negativeinterest rates

The United Nations adopts theSustainable Development Goals

Bank of Japan introduces quantitativeand qualitative monetary easing

2016

2020

新型コロナウィルス
感染拡大

2021
Establishmentof Mizuho
Research &Technologies

Establishment of Custody
Bank of Japan
Establishment of MI Digital
Services

Introduction of in-house company system
Establishment of Asset Management One
Establishment of Mizuho Americas

2019
2013
Announcement of mediumterm business plan: One
Mizuho New Frontier Plan
In response to structural and regulatorychanges in the economy and society inboth Japan and overseas, aiming for the
new frontier of finance for the coming
era

2016
Announcement of mediumterm business plan:
Progressive Development of“One Mizuho”
Further development of the One Mizuho
Strategy by creating a new businessmodel as a financial services consulting
group based on the foundations ofoperational excellence and a customerfocused perspective

Announcement of
5-Year Business Plan
Transitioning to the next generationof financial services by building
new forms of partnerships with ourcustomers so that we can respondto their needs as the times change,
with the objective to build a stronger
and more resilient financial groupwhich our customers can depend onin the coming era

Integrated Report 2021

Our strategies forcreating value

2020

Foundations for our
corporate value

Merger with Mizuho Investors Securities

Data section

Merger of Mizuho Bank and Mizuho
Corporate Bank
Establishment of Mizuho Securities

Appendix2013

Message from theGroup CFO

About Mizuho

Mizuho Trust & Banking and Mizuho
Securities become wholly-owned
subsidiaries of Mizuho Financial Group18

About Mizuho

Value creation process
We are committed to addressing the challenges faced by customers and society in this new era, during and after COVID-19.
Through our action principles, Open & Connected and Passionate & Professional, we will build new forms of partnerships
and transition to the next generation of financial services. Our objective is to build a stronger and more resilient financialgroup which our customers can depend on in the coming era. Even in these times of change, we will continue to create
lasting value and deliver benefits for our customers and the economies and communities in which we operate.

Megatrends / Structural issues arising from changing times
Digitalization

Declining birthrate andaging population

Globalization

Structural changes accelerated by COVID-19
Digital transformation / sustainability trends

Determining materiality with respect to expectations of society and importance to Mizuho

Mizuho’s business initiatives to create new

Input (Mizuho’s strengths)

Develop new forms of partnerships with our customers and create new

Human & intellectual capital

Materiality

Financial functions
Ability to respond to non-financial needs
Excellent team of professionals

Business eclining birthrate and aging population,
D
Industry development & innovation

Corporate foundations

Corporate governance  
Human capital
Open partnerships and collaboration withSocial & relationship capital
Customer base and network
Trustworthiness and dependability
Market presence

Incorporate inGroup-wide sustainablefoundations

Group-wide medium-term
strategy and action principles

Employee engagement

Open & Connected

Financial capital

P65

Create new, more open
value chains spanning

Stable capital raising structure

Digitalization

Sound loan assets

both finance and adjacent
P63

Sufficient equity capital

Corporate governance
P71
Approach business as a unified group
P23

fieldsPassionate & Professional
Anticipate customer
needs and then think, act,and deliver

Risk governance

P35
P81

Sustainability: Position sustainability as an integral part of our business strategy, endeavor to limit impacts on the19

Mizuho Financial Groupvalue incorporating both financial and non-financial products and services
business strategy and pursue specific initiatives

P21

plus good health and lengthening lifespansSound economic growth  
Environmental considerations
Environment & society
a diverse range of stakeholders

Group-wide organization and business strategies
tailored to individual customer attributes
Retail & Business Banking Company

P37

Corporate & Institutional Company

P39

Global Corporate Company

P41

Global Markets Company

P43

Asset Management Company

P45

Global Products Unit

P47

Research & Consulting Unit

P49

Retail customers & business owners
Medium-term strategy: Be a partner thathelps customers design their lives in achanging society
Provide safe, stable, and convenient services
tailored to each individual’s needs in asset
formation, business succession, digitalization,and other areas.
P37, 45

Corporate & institutional clients
Medium-term strategy: Be a strategic
partner for business development undera changing industrial structure
Leverage our industry insight to support ourclients in sustainably improving their corporate
value through global expansion and innovation
P37, 39, 41Market Participants
Medium-term strategy: Be a partnerwith expert knowledge of market
mechanisms and the ability to draw on
a range of intermediary functions
Respond to participant needs and provide
intermediary services facilitating market
development by making use of our global
network and optimum products framework
P43, 45

Diverse workforce in step with our customers and society

Message from theGroup CFO

OutputOur strategies forcreating value

value in finance and adjacent fields

Foundations for our
corporate value

Create value in finance and adjacent fields and provide value to a wide range of stakeholders

Data section

Contribute to the sustainable development and prosperity of society by providing safe, stable,
and convenient infrastructure
Contribute by addressing environmental concerns and climate change and driving sustainable
Environmental value
business
Economic value
Improve corporate value and individuals’ lives both at Mizuho and among our stakeholders
Social value

AppendixCreate lasting value for our customers and the economies and communities in which we operate

About Mizuho

Message from theGroup CEOValue creation process

P65

environment while also creating new business, and develop a business structure for sustainable growth

P51

Integrated Report 2021

20

About Mizuho

Materiality/Risks and opportunities
Key sustainability areas (materiality)
At Mizuho, we have defined key sustainability areas in our 5-Year Business Plan in line with the expectations and requirements of stakeholders and based on the importance and affinity of such initiatives with our strategy, as well as on themedium- to long-term impact on our corporate value. On top of considering risks and opportunities, each in-house company, unit, and group has established a strategy incorporating sustainability initiatives. Additionally, we have set targets/
KPIs based on our key sustainability areas. The key sustainability areas and other items are revised each fiscal year andreflected into our business plan.

Key sustainability areas (materiality)‌
Assetformation to prepare for the future‌Expand services that respond to a society witha declining birthrate and aging population‌‌Convenient services in line with diversifying
lifestyles
P38, P46, P50, P63

L‌ ost opportunities due to a lack of appropriate channels andservices‌Customer attrition due to insufficient consideration of aspects suchas diversity, resulting from not fully adapting to changes in society
including the declining birthrate and aging population

Industry development& innovation‌Smooth business succession‌‌Industry transformation‌Acceleration of innovation‌Growth in Asian economic zones‌Creating resilient social infrastructure
P38, P40, P42, P44, P46, P48, P50, P63

I‌ ncrease in credit costs caused by the deteriorated businessperformance of companies resulting from a delayed response tosuch factors as industry transformation‌Lost opportunities resulting from an insufficient ability to respond tochanges in client needs‌Stagnation in or weakened competitiveness of our digital strategies
due to the rapid advancement of digital transformation

Sound economic
growth‌Strengthening
capital markets functions‌Transition to a cashless society‌Environmentally conscious social programs
P38, P40, P42, P44, P46, P48, P50, P63

L‌ ost opportunities resulting from a lack of solutions that adapt tochanges in regulations and financial market conditions‌Business restrictions and increased compliance costs arising from
regulatory changes‌Deterioration in the competitiveness of our services due to an
insufficient response to the advancing shift toward cashless
payments

Environmental
considerations‌Promotingaction to address climate change
and supporting the transition to a low-carbon
societyP40, P42, P46, P48, P50, P55 to 58

I‌ ncreased credit costs resulting from deteriorated businessperformance in companies with delayed responses to technologicalinnovations aimed at transitioning to a low-carbon society, as wellas to changes in stakeholder behavior‌Lost opportunities due to insufficient solutions

Corporate
governance‌Enhancing
corporate governance‌Risk management, strengthening our IT
infrastructure, and compliance‌Disclosure of information in a fair, timely, andappropriate manner, and holding dialogue withstakeholders
P31 to 32, P40, P42, P44, P71 to 95‌Damageto social credibility or business activity suspensions due toissues such as inadequate corporate governance or large-scale IT
system failures‌Increased costs related to government fines or penalties resulting
from issues such as IT system failures or violations of laws andregulations

Human capital‌
Talentdevelopment and creating workplaces
that give employees a sense of purpose
P46, P48, P65 to 68‌Impacts
on strategy execution such as stagnation resulting froma high turnover or difficulty in securing personnel due to an HR
system or a workplace environment with a low level of appeal‌Issues such as overwork resulting in required payment ofgovernment fines or compensation, as well as public criticism andweakened employee morale

Environment &Society‌Environmental
and human rights considerations
for investment and lending‌Addressing climate change‌Improving financial and economic literacy, andpromoting activities that contribute to society
based on regional and societal needs
P42, P53 to 54, P59 to 62, P95‌Publiccriticism of issues such as insufficient initiatives concerning
climate change and human rights in financing and investment‌Deterioration in financial positions due to factors such as increased
credit costs resulting from delayed support for clients

Corporate foundations

Business

Declining birthrate
and aging population,plus good health andlengthening lifespans

Open partnerships and collaboration with a diverse range of stakeholders

21

Risks for Mizuho

Mizuho Financial GroupE‌ nhancing investment management and stewardship activities
leveraging ESG informationP‌ romoting the shift to cashless payments through services such as
J-CoinA‌ dvancing the provision of solutions aligned with changes in society,the economy, companies, and consumer behavior‌ reparing and providing expertise and solutions in line with
P
increasing climate change response and transition support needs‌ eveloping and providing products and services, and carrying out
D
engagement to support climate change countermeasures and thetransition to a low-carbon society‌Enhancement and utilization of climate-related scenario analysis inrisk management and strategies‌Strengthening
our capacity to execute strategies by expanding andenhancing corporate governance and management frameworks‌Improving stakeholder communication

Strengthening‌
our operations, business, and risk management systems
on a group-wide and global basis
Building‌and enhancing our IT infrastructure, and improving our
cybersecurity
Strengthening‌
our information provision and communication

Securing‌
personnel and raising employee motivation by fully engaging
a diverse workforce‌
Building
frameworks that provide robust support for the growth andengagement of each individual employee‌Providing an HR system and opportunities for learning and taking onchallenges appropriate for specialist personnel‌Firmly establishing new workstyles that realize more flexible andhighly productive ways of working‌Promoting the health of employees and building healthy work
environments

Building‌and strengthening relationships with stakeholders throughthe formulation and implementation of appropriate financing andinvestment policies, as well as through social contribution activities‌
Implementing
and enhancing appropriate financing and investment
policies that are environmentally and socially responsible‌Strengthening climate change responses leveraging frameworks inline with the TCFD Recommendations‌Carrying out financial and economic education based on regional
needs, as well as activities that contribute to local communities andsociety

Message from theGroup CFO

‌ apturing revenue opportunities that result from supportingC
sustainable economic growth with the sound provision of risk capital‌Providing services aligned with cashless trends‌Expanding solutions and leveraging intermediary functions that
include non-financial areas capturing the increasing interest inenvironmental and social impact

Our strategies forcreating value

I‌ ncreased financial and non-financial needs arising from various
changes such as business succession and industry transformation‌Speedy development and expansion of solutions that also
leverage specialized knowledge and utilize external resources andtechnologies‌ roviding solutions that meet diversifying business succession needs
P‌Providing information and solutions leveraging cross-sector expertiseand digital transformation support functions‌Supporting business model transformation that anticipates trends insociety‌Promoting the digitalization of financial infrastructure‌Diversifying and enhancing sustainability solutions‌Appropriate risk management through the identification and analysisof portfolios that require management

Foundations for our
corporate value‌ roviding diverse services and responsive customer care in line with
Pchanging needs including for medium- to long-term asset formation‌‌Expanding products and services that support medium- to long-term
asset formation
Providing solutions that leverage expertise in areas including medical
and long-term care
‌Enhancing digital marketing and digital channels
Group-wide implementation of customer experience initiatives

Related SDGs

Data section

Main initiatives

Appendix

Opportunities for Mizuho

About Mizuho

Message from theGroup CEO

Materiality/Risks and opportunities

Note: Icons indicate relation to major Sustainable Development Goals (SDGs)
Integrated Report 2021

22About Mizuho

Business domain

The Mizuho group’s business domains include banking, trust banking, securities, and other financial services.
Our group-wide business is centrally managed under a holding company, and in order to leverage Mizuho’s uniquecharacteristics, in April 2016 we established five in-house companies covering each customer segment and two units
with the aim of better providing services that meet customer needs in a timely manner.
In-house companies:
Determine and promote strategies group-wide according to the attributes of customers.
Units:
Mizuho has a Global Products Unit, which covers investment banking and transaction banking, and a Research &Consulting Unit that serves as the starting point for Mizuho’s value creation in non-financial areas. Both units leverage
their expertise to support all of the in-house companies.

Banking

Trust banking

Mizuho Bank (MHBK)

Mizuho Trust & Banking (MHTB)

Mizuho Financial Group
Securities

Corporate & Institutional
Company

Global Corporate Company

Global Markets Company

Asset Management Company

Global
Products Unit

Research &Consulting
Unit
Other core groupcompanies

MizuhoAmericas1
1. US bank holding company, which is one of Mizuho Financial Group’s core group companies and Mizuho Bank’s subsidiaries.

23

Mizuho Financial Group

Mizuho Securities (MHSC)

Retail & Business Banking
CompanyResearch &consulting

Retail & Business Banking Company

61.0

75.0

Corporate & Institutional Company

270.0

270.0

Global Corporate Company

207.0

202.0

Global Markets Company

272.0

253.0

Asset Management Company

11.0

19.0

In-house company total

822.0

819.0

Group consolidated

799.7

790.0

Other core groupcompanies
MizuhoPrivate WealthManagement(MHPW)

Customers
Individual customers / SMEs /middle-market corporations
Large corporations / financial
institutions / public-sector entities
Americas / EMEA / East Asia /Asia & Oceania

Investors
AssetManagement
One

About Mizuho

FY2021 targets

Message from theGroup CFO

Assetmanagement

FY2020 results

Our strategies forcreating value• New management accounting rules were applied in FY2021. Figures for
FY2020 are recalculated based on the new rules.
• Including impact of the changes to the in-house company in charge due toreorganization of branches (FY2020 Net Business Profits: Retail & BusinessBanking Company + ¥15 billion, Corporate & Institutional Company - ¥15billion).
• Net Business Profits for the Global Markets Company include Net Gains(Losses) related to ETFs (MHBK + MHTB).
• Mizuho Financial Group’s consolidated figures include Consolidated Net
Business Profits and Net Gains (Losses) related to ETFs and others

Foundations for our
corporate value(group aggregate, management accounting, rounded figures) (¥ billion)

Reference Net Business Profits by in-house company

Message from theGroup CEOBusiness domain

Data section

Investors

Custody Bankof Japan

AppendixMizuho Research& Technologies(MHRT)2
MI Digital
Services

2. Mizuho Research & Technologies is the company that was formed when Mizuho Information & Research Institute and Mizuho Research Institute merged and changed theirtrade name on April 1, 2021.

Integrated Report 2021

24

About Mizuho

Financial data
Historical data
Consolidated Net Business Profits1

Profit Attributable to Owners of Parent(¥ billion)(¥ billion)
Prior to recording
one-time losses2

699.7
538.0

672.5

603.1

Prior to recording
one-time losses*

799.7
603.5

576.5

581.8

FY2017FY2018408.3
FY2016FY2017FY2018FY2019

448.5

471.0

FY2019FY202096.5
FY20201. Consolidated Gross Profits (including Net Gains (Losses) related to ETFs and others) – G&A
Expenses (excluding Non-Recurring Losses) + Equity in Income from Investments in Affiliates
and certain other consolidation adjustments
2. Prior to reflecting one-time losses recorded in light of structural reforms

FY2016* Prior to reflecting one-time losses recorded in light of structural reforms

Progress on the 5-Year Business Plan (FY2019-FY2023)
Financial targets
Consolidated ROE1

Consolidated Net Business Profits1

Exceeded the thirdyear target ofTarget ofapprox. ¥700 billion
approx. ¥900
one year in advancebillion(¥ billion)

Approx.
7 – 8%

Prior to recording
one-time losses2

7.4%

603.1

5.9%

5.8%

Prior to recording
one-time losses2

799.7

672.5

1.2%
408.3
FY2018FY2019FY2020

FY2023

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

FY2018FY2019FY2020

FY2023

1. Consolidated Gross Profits (including Net Gains (Losses) related to ETFs and others) – G&A
Expenses (excluding Non-Recurring Losses) + Equity in Income from Investments in Affiliates
and certain other consolidation adjustments
2. Prior to reflecting one-time losses recorded in light of structural reforms

Other key indicators
Common Equity Tier 1 (CET1) Capital Ratio*
Achieved in thesecond year

9.1%

Target level:
Lower end of
the 9 – 10%
range by
March 31, 2024

8.8%

Reduction of cross-shareholdings1(¥ billion)

Reduction of ¥300 billion-252.1 (Progress 84%)2

1,419.8

1,272.0

1,167.7

March 31,2020

March 31,
2021

8.2%
March 31,2019

March 31,2020

March 31,2021

* Calculated on a Basel III fully effective basis (includes the effect of partially fixing unrealized
gains on stocks through hedge transactions, excluding Net Unrealized Gains (Losses) on Other
Securities).

25

Mizuho Financial Group

March 31,2019

1. Acquisition cost basis
2. Of which, - ¥219.4 billion from sales (Progress 73%)

March 31,2022

Financial & Non-financial data

FY2020 performance

289.1
Target:Reduce the
FY2019 amountby 50%Of which,environmental
finance¥805.1 billion

Number of individual customers who
use investment products

1.526 million
customers

Net increase in publicly offeredequity investment trust assets undermanagement¥982.3 billionS mooth business succession

FY2020 performance

Number of clients provided with
consulting for business succession

7.1

A cceleration of innovation

12

FY2019FY2020

FY2030

FY2020 performance

Target:Zero

Rank in the number of IPOs as leadunderwriter#2

FY2040Rank in terms of IPO underwriting
amount#3

2.6
Total forTotal for
FY2019-FY2020 FY2019-FY2030

2,183 clients

Human capital/Diversity & Inclusion Percentage of management positions filled byOtherwomen (general manager and manager equivalent)1

Target:20%
15%

July 2019

July 2020

July 2021

July 2024

Level to beachieved
continuously

FY2020
performance

Percentage of management
positions filled by employees hired
outside Japan2

65%

64%

Percentage of women in new
graduates hired1, 3

30%

37%

Percentage of paid annual leave
taken by employees1

70%

70%

Percentage of eligible male
employees who take childcare
leave1100%

98%

1. Japan (Total of Mizuho Financial Group, Mizuho Bank, Mizuho Trust & Banking, and Mizuho Securities)
2. Except Japan (Total of Mizuho Bank, Mizuho Trust & Banking, and Mizuho Securities)
3. For new employees hired with plans to start in April of the following year

Environment and society
Reduction of environmental footprint
Target achieved

Target:-10.5%

Paper-related items

99.9%-34.8%

Item

Target:-19.0%

 umber of participants in Mizuho’sNfinancial and economic education
programs

93.1%
Green purchasing

Numerical

50000●% target 目標FY2020 results
95%以上
40000

●% At least

ratio target for paper2

85%

Paper recycling ratio
target (major offices
in Japan)

At least
95%※4● 紙のグリーン購入比率

FY2020

FY2030Target: More than
60,000 participants

60000

85%以上

● のリサイクル率（国内主要事業所）

28,365

99.9% 30000 participants

Appendix

CO2 emissions basic unit of electricity used1, 2, 4

Reduction amountCorporate foundations

18%

16%

Item

Message from theGroup CFO

299.5

Our strategies forcreating value

25

Net increase in investment products(individual investors)

Foundations for our
corporate value

BusinessA sset formation for the futureand Social Management Policy for Financing andInvestment Activity(¥ billion)

Target(¥ trillion)

credit balance for coal-fired power Outstanding
generation facilities based on our Environmental

Data sectionS ustainable finance
Environmental finance

About Mizuho

FY2020 performance on sustainability performance targets and KPIs

Message from theGroup CEONon-financial data

20000

92.1% 10000
0Total forTotal for
FY2019-FY2020 FY2019-FY2023
1. CO2 emissions basic unit of electricity used at our offices in Japan (CO2 emissions/total floor area)
2019年度
2020年度2. Mizuho Financial Group, Mizuho Bank, Mizuho Trust & Banking, Mizuho Securities, Mizuho Information & ResearchInstitute3, Mizuho Research Institute3, Asset Management One, and Mizuho Private Wealth Management.
3. Now integrated as Mizuho Research & Technologies
4. Compared to FY2009 levels

Integrated Report 2021

26

Message from the Group CFO

In order to fulfill our social
responsibilities as a financial
institution and facilitatecontinuous growth, we are
steadily advancing financestructure reforms

MakotoUmemiya

Overview of the 5-Year Business Plan’s
second year
Fiscal 2020 performance
Amid the unprecedented crisis caused by the COVID-19
pandemic in fiscal 2020, we were able to fulfill our financial
intermediary functions and respond to client needs such as forfunding support while also making steady progress towardfinance structure reforms through the thorough implementationof proactive financial management from a forward-looking
perspective.
Our Consolidated Net Business Profits, which indicate the profits
of our core business operations, performed strongly in bothcustomer and markets divisions, increasing significantly year-onyear by ¥127.1 billion to ¥799.7 billion. Performance in thecustomer divisions surpassed the levels recorded prior to theintroduction of Japan’s negative interest rate policy in fiscal 2015,
reaching the highest level of profits since we introduced thein-house company system in fiscal 2016.
Although Credit-related Costs increased as a result of therecording of additional Reserves for Possible Losses on Loansfrom a forward-looking perspective in response to the prolonged
impact of the COVID-19 pandemic, the strong performance of our
Consolidated Net Business Profits has driven an increase in Net

27

Mizuho Financial Group

Member of the Board of Directors
Senior Executive Officer
Head of Financial Control &Accounting Group (Group CFO)

Historical data(¥ billion)

799.7

Consolidated Net Business Profits
699.7

672.5
603.1

1

538.0

549.6
Of which,customerdivisions2

339.3

333.1

FY2016FY2017

456.8

446.8

FY2018FY2019FY2020

1. Prior to reflecting one-time losses of ¥194.7 billion recorded in light ofstructural reform initiatives
2. Total for the Retail & Business Banking Company, Corporate & Institutional
Company, Global Corporate Company, and Asset Management Company.
Past fiscal year results were recalculated based on fiscal 2020 management
accounting rules.

Loan spread1
Outside Japan2

Risk & return (gross profits ROE)
Toward improving risk & return, we worked to shift corporate
resources from less-profitable business areas to high-profit
business areas while also diligently and consistently proceedingwith negotiations with individual clients to improve profitability. I
would like to explain the results of these efforts in detail, namely
the improvement in the loan spread outside Japan and the
reduction of cross-shareholdings.
With regard to client relations outside Japan, we advanced our
Global 300 strategy and built a portfolio that focuses on nonJapanese blue-chip companies with a high credit profile.
However, due to the highly competitive environment, there werealso transactions that failed to lead to expanded ancillarytransactions, leaving them at a low level of profitability. To
address this, we reviewed our invested corporate resources,
evaluating the potential for future improvements in the
profitability of transactions with each company. Such continual
efforts resulted in the achievement of a 0.99% loan spread outside
Japan in the second half of fiscal 2020, up significantly from
0.80% two years ago and 0.82% one year ago.
Regarding the reduction in cross-shareholdings, for which weestablished a target to reduce cross-shareholdings by ¥300 billion
over three years through the end of fiscal 2021, we have madesteady progress through sincere dialogue with clients, selling a
total amount of ¥219.4 billion (a total reduction of ¥252.1 billion
including impairment losses) over two years. In our shift frombusiness relationships dependent on cross-shareholdings, we arereforming our business structure while simultaneously improving
risk & return. This is being accomplished through such means as
investing, over a span of two years, approximately ¥0.8 trillion of
the resources secured from reducing cross-shareholdings intoquasi-equity loans or preferred stock that facilitate the businessstructure transformation of clients.

0.89%
0.84%

0.64%

0.48%

0.62%

0.48%

0.60%

0.48%

0.80%
0.58%

0.47%

0.81%

0.82%

0.55%

0.54%

0.49%

0.49%

0.52%

0.48%

0.54%

0.49%

FY2017 FY2017 FY2018 FY2018 FY2019 FY2019 FY2020 FY2020
H1
H2
H1
H2
H1
H2
H1
H2
1. Mizuho Bank, management accounting
2. Mizuho Bank (including subsidiaries in China, the US, the Netherlands,
Indonesia, Malaysia, Russia, Brazil, Mexico). Figures, including past figures,
were calculated based on the FY2020 planned rate in US dollars.

Reduction of cross-shareholdings1(¥ billion)

About Mizuho

0.90%

Message from theGroup CFO

In our 5-Year Business Plan that began in fiscal 2019, we aim totransition to the next generation of financial services byimplementing structural reforms in the three interconnectedareas of business, finance, and corporate foundations.
Particularly for finance structure reforms, in addition toevaluating the efficiency of returns on invested corporate
resources for each business area based on risk & return and cost
& return, we are reallocating corporate resources with a focus on
the stability and growth potential of revenue as well. It is throughsuch initiatives that we aim to further strengthen our stablerevenue base and continue building our business portfolio toalign with growth areas.

0.89%

0.99%

Reduction of ¥300 billion

Our strategies forcreating value

Progress on finance structure reforms

For large corporations-252.1 (Progress rate: 84%) 2
1,419.8

March 31,2019

1,272.0

March 31,2020

1,167.7

March 31,2021

March 31,2022

1. Acquisition cost basis
2. Of which, - ¥219.4 billion from sales (Progress rate: 73%)

Cost & return (expense ratio)
As structural changes progress, including the declining birthrate
and aging population, digitalization, and the prolongation of the
low interest rate environment, the most pressing issue regarding
cost & return is transforming the cost structure of our retailbusiness in Japan to a structure balanced with revenue. In
addition to transitioning toward an appropriate businessstructure for the coming era, including with our IT systems,
operations, and channels, we have also reviewed our sales
framework to be more closely aligned with the diversifying
needs of clients.
It is through such initiatives that we achieved Net BusinessProfits of ¥42.5 billion for the Retail & Business Banking
Company in fiscal 2020, a ¥30.3 billion increase year-on-year, andwe are setting the stage to continue the trend of growing profits.

Foundations for our
corporate value

Dividends per share were ¥75, matching our estimate at the
beginning of the fiscal year based on the shareholder return
policy through fiscal 2020 and in light of the performance of Net
Income Attributable to Mizuho Financial Group.

For SMEs and middle-market firms

Data section

As of March 31, 2021, our Common Equity Tier 1 (CET1) Capital
Ratio, which indicates financial soundness, was 9.1%, reachingour 5-Year Business Plan target of the lower end of the 9 – 10%
range during the second year of the plan.

Appendix

Income Attributable to Mizuho Financial Group by ¥22.4 billion
year-on-year to ¥471 billion.

Message from theGroup CEO

Message from the Group CFO

 or information about the progress of the fundamental
F
structural reforms, refer to P36.

Integrated Report 2021

28

Message from the Group CFO

As a result, our total Consolidated Net Business Profits exceededthe ¥700 billion third year target of the 5-Year Business Plan one
year in advance at ¥799.7 billion.

Stable revenue and upside revenue
Financial business involves a profit structure with profit levels
that fluctuate largely with the business environment, including
with interest rates, foreign exchange rates, stock prices, andother economic trends. In considering our business portfolio, it
is crucial that we strengthen our stable revenue base to beresistant to the effects of the business environment while alsoestablishing a foundation that is able to reliably capture revenue
opportunities during times of strong business trends.

Fiscal 2021 financial management
Fiscal 2021 will be a crucial year as a midway point in our 5-YearBusiness Plan, in which we deepen the initiatives that we have
implemented so far and link them to continuous growth. While
preparing ourselves thoroughly for the risk of the COVID-19
pandemic continuing, resulting in a prolonged economic
downturn, we will steadily advance finance structure reforms toensure that we meet our fiscal 2023 goals.

At Mizuho, we are monitoring the progress behind thestrengthening of our revenue base and the restructuring of ourbusiness portfolio by analyzing our Consolidated Net BusinessProfits divided into stable revenue and upside revenue.

Fiscal 2021 earnings plans

In fiscal 2020, our stable revenue increased by ¥59 billion yearon-year to ¥370 billion, resulting mainly from factors such asincreased loans and improved loan spreads amid the COVID-19
pandemic, as well as a reduction in costs focused on the Retail &Business Banking Company. In fiscal 2021, we anticipate ourstable revenue to surpass the ¥380 billion level recorded prior to
the introduction of the negative interest rate policy in fiscal 2015.

With the exceedingly strong fiscal 2020 performance of capital
markets-related business leveling off, we anticipate a drop in
Consolidated Net Business Profits centered on markets divisions.
However, as a result of the advancement of our structuralreforms to enhance stable revenue, including the improvementof lending income among other enhancements, we expect only aslight decline from fiscal 2020 with a Consolidated Net BusinessProfits estimate of ¥790 billion.

Our upside revenue in fiscal 2020 was ¥295 billion, reaching the¥270 billion planned for the final year of the 5-Year Business Plan
three years ahead of schedule. On top of the strong performancein capital markets-related business both in and outside Japan,
our asset management business also trended favorably on theback of rising stock prices, among other factors, allowing us to
fully capture the strong tailwinds. Although revenue will fluctuate
depending on the business environment, the strength of our
fundamental earnings power is steadily on the rise.

We expect Credit-related Costs to decrease to -¥100 billion,
halving the amount on a year-on-year basis, as reserves were set
to the greatest extent possible for credit risks from fiscal 2021
onward on a forward-looking basis in the fiscal 2020 financial
results. Although reserves have been recorded financially, as we
expect the difficult business environment due to the COVID-19
pandemic to continue primarily in Japan for some time, we willcontinue to ensure thorough credit management.

Stable revenue and upside revenue1(¥ billion)

Consolidated Net
Business Profits

672.5

799.7

790.0

Approx. 900

Banking revenue

143.0

137.0

138.0

160.0

295.0

253.0

270.0

+112.0Upside revenue

183.0

Exceeded the 380 level achievedprior to the introduction ofnegative interest rates+59.0

Stable revenue

311.0

370.0

FY2019FY2020Banking revenue: Revenue such as banking book revenue, excluding ALM revenue2
Upside revenue: Non-recurring customer-related revenue + trading-related revenue
Stable revenue: Recurring customer-related revenue + ALM revenue2

29

Mizuho Financial Group

Steady increaseof revenue

404.0
FY2021targets

500.0

FY2023
initial targets

1. Group aggregate, management accounting, rounded figures (Excluding special factors suchas one-time gains. The aggregate figures of banking revenue, upside revenue, and stablerevenue do not match Consolidated Net Business Profits in the same period).
2. Banking book revenue resulting from overall management of assets and liabilities.

Year-on-year

We will also make timely and appropriate decisions regarding
share buybacks with consideration to our business results andcapital adequacy, our stock price, and opportunities for growthinvestment, among other factors.

Consolidated Net BusinessProfits(+ Net Gains/Losses Related
to ETFs)

799.7

790.0

-9.7

Credit-related Costs-204.9-100.0+104.9New capital management policy

Net Gains (Losses) related
to Stocks(- Net Gains/Losses Related
to ETFs)

10.0

50.0

+39.9

Strengthen
capitaladequacy

Ordinary Profits

536.3

720.0

+183.6Net Income Attributable to
Mizuho Financial Group

471.0

510.0

+38.9

Capital management policy/shareholder
return policy
In light of such factors as our CET1 Capital Ratio reaching thelower end of the 9 – 10% range, as is targeted in the 5-YearBusiness Plan, as well as our forecasts for our capital andearnings levels, we have revised our capital management
policy. Rather than pursuing the optimum balance between
strengthening our capital base and steady returns toshareholders, as we have done so far, we will now pursue theoptimum balance between capital adequacy, growthinvestment, and the enhancement of shareholder returns.
Additionally, we also reviewed our shareholder return policy
and set progressive dividends as our principle approach, where
we decide dividends based on the steady growth of our stableearnings base, taking a 40% dividend payout ratio into
consideration as a guide. Estimates for fiscal 2021 annual

CET1 Capital Ratio
Target level:
Lower end of the
9 – 10% range

9.1%(March 31, 2021)
9.0%
8.8%
(March 31, 2020)

Ensure capital buffer

+0.9%

+
Ensure stressresistance

Secure stress resistanceand a certain level ofcapital buffer

About Mizuho

Targets

Message from theGroup CFO

performance

Optimal balance
Growthinvestment
Investments that will strengthen the revenue baseof existing business

Enhanceshareholder
returns
Revision of the shareholder
return policy

Evaluate each inorganic investment based on
factors including its consistency with our strategy,
appropriateness of price, and risk & returnTax initiatives
The fulfillment of tax duties is one of the most important social
responsibilities for companies. In addition to fulfilling tax duties
and complying rigorously with tax laws of applicable countries
and international tax rules such as the Action Plan on Base
Erosion and Profit Shifting*, we strive to sustainably increase
corporate value.
Specifically, we ensure that all employees understand thecontents of our Tax Policy and pursue the improvement of tax
literacy through training sessions, and we will continue working
to improve the fulfillment of our tax duties based on our Tax
Policy. From the perspective of appropriate management of tax
costs, in fiscal 2021 we have started the implementation of theconsolidated taxation system in Japan.
* Base Erosion and Profit Shifting (BEPS): Tax planning strategies
utilized by multinational companies to leverage gaps innational and international tax rules and artificially shift theirprofits to avoid taxation.

Our strategies forcreating value(¥ billion)

FY2021

Foundations for our
corporate value

FY2020

Data section

Fiscal 2021 earnings targets

dividends will be maintained at ¥75 per share of common stock,unchanged from fiscal 2020. We set these figures based on theuncertain business environment that remains as a result of the
prolonged impact from the COVID-19 pandemic, and we willcontinue our efforts toward increasing the probability ofreaching our ¥510 billion target for Net Income Attributable to
Mizuho Financial Group, reviewing our dividend estimates asnecessary.

Appendix

Including Net Gains (Losses) Related to Stocks centered on the
reduction of cross-shareholdings, we expect Net Income
Attributable to Mizuho Financial Group to reach ¥510 billion, an
8% increase year-on-year.

Message from theGroup CEO

Message from the Group CFO

8.2%(March 31, 2019)

Integrated Report 2021

30

Message from the Group CFO

Our engagement with shareholders andinvestors

holding presentations for individual investors via online
video linkup since 2015. With a consideration to the
COVID-19 pandemic, we are also carrying out meetingsand IR events through remote channels. For example, in
addition to the usual fiscal year and interim financial
results explanations, we hold online conferences for
institutional investors following the publication of first
and third quarter financial results. We also proactively
utilize remote environments, which are free fromconstraints such as time and region, to hold meetings
with investors outside Japan.

 nhancing engagement with shareholders andEinvestors
In recent years, the relationship between companies andtheir shareholders and investors is changing, with theinterests of shareholders and investors expanding toinclude not only business strategy and capitalmanagement policy, but also the sustainableimprovement of corporate value from a broad range ofperspectives such as environmental sustainability. In
light of this, we at Mizuho are making efforts in our IR
activities to further enhance engagement with ESG
investors, as well as further strengthen our disclosure.

We will continue striving to enhance our disclosureswhile proactively engaging with shareholders andinvestors.
Improving Mizuho’s initiatives through engagement

At Mizuho, we hold events on a regular basis asopportunities for engagement, including presentations
on our financial results for institutional investors, IR Day,
which is a briefing about the business strategies of eachin-house company, and IR Select, which is an event
covering specific strategic topics. We have also continued

At Mizuho, we are working to improve our many
initiatives and disclosures, listening closely to theopinions received from our shareholders, investors, andother varied stakeholders.

The year in engagement

April
2020

Fiscalyear
results

June

SeptemberInterimresults

Online meetings with investors in and outside Japan

General Meeting of Shareholders

IR SelectPresentation for individual investors

IR DayAt this event we covered our strengthening ofsustainability initiatives. An outside director
session was also held.

Presentation covering Mizuho’s strategies
and shareholder return policy. Currently, over
20,000 investors have viewed the presentation,
including those who viewed the recording of
the event.

The head of each in-house company gave
presentations covering their businessstrategies. An outside director session was
also held.

FY2020Meetings with institutional investors

440 (includes 160 overseas investors)
31

Mizuho Financial GroupBy executive officers

By IR Dept.

(includes 50
overseas investors)(includes 110
overseas investors)

200

240

(Total number, rounded, of meetings
with stock, fixed income securities, and
ESG investors.)

Furthermore, in addition to enhancing our disclosure ofmatters related to the COVID-19 pandemic and our inhouse companies in our financial results materials, we
also started providing earlier disclosure regarding crossshareholdings in the convocation notice for the General
Meeting of Shareholders.
We will continue to listen closer yet to the opinions of
our shareholders and investors and strive to reflect thesein our initiatives.

Definitions for figures in the Message from the Group CFO
Consolidated Net business Profits: Includes Net Gains (Losses) related to
ETFs (Mizuho Bank and Mizuho Trust & Banking) and Net Gains on Operating
Investment Securities (Mizuho Securities consolidated)
CET1 Capital Ratio: Calculated on a Basel III finalization basis (includes theeffect of partially fixing unrealized gains on stocks through hedge transactions,excluding Net Unrealized Gains (Losses) on Other Securities).

April
2021

DecemberFiscalyear
results

June

Online meetings with investors in and outside Japan

General Meeting of Shareholders
Engagement for the transition to
the capital utilization phase*

IR SelectPresentation focusing on our performance inlight of the COVID-19 pandemic as well as on
our revised plan.

Presentation on Mizuho Securities regarding
our initiatives to improve the earnings powerof each business division.

About Mizuho

Financial results presentation

Presentation focusing on the FY2021
Management Policy and transition to thecapital utilization phase.

Appendix

Data section

Financial results presentation

Message from theGroup CFOAs the General Meeting of Shareholders is an
important engagement opportunity to hold dialogue
directly with shareholders, we at Mizuho are driving
various related initiatives. In particular, in addition toenhancing communications including the convocation
notice and providing videos of the meeting online, we
are also implementing measures such as enabling theexercise of voting rights via mobile devices. Due tothe COVID-19 pandemic, we are also implementing an
online video feed in addition to the on-site meeting.

With a rise in the number of meetings we have in recent
years as a result of a heightened interest in sustainability,
we are also strengthening our initiatives in this area. We
released details about our initiatives in our press release“Strengthening our sustainability action” in May 2021,
and our TCFD Report 2021 in June 2021.

Our strategies forcreating value

Initiatives pertaining to the General Meeting of Shareholders

Foundations for our
corporate value

As part of these initiatives, we revised our basic policy
on capital strategy and shareholder return policy aftergathering opinions from institutional investors andanalysts and holding multiple meetings with outside
directors.

Message from theGroup CEO

Message from the Group CFO* Engagement for the transition to the capital utilization phase• In light of the CET1 Capital Ratio of 8.9% as of December 31, 2020, approaching the lower end of the 9 – 10% range, various
opportunities for discussion with institutional investors and analysts in and outside Japan were gained in addition to proactive
discussions held with outside directors.
• In May 2021, we revised our basic policy on capital strategy and our shareholder return policy based on the opinions received
through engagement.

Integrated Report 2021

32

33

Mizuho Financial GroupOur strategies for creating value

Progress on the 5-Year Business Plan� P. 35
Business strategies by company/unit
Retail & Business Banking Company� P. 37
Corporate & Institutional Company� P. 39
Global Corporate Company����� P. 41
Global Markets Company������ P. 43
Asset Management Company��� P. 45
Global Products Unit��������� P. 47
Research & Consulting Unit����� P. 49
Sustainability���������������� P. 51
Digitalization����������������� P. 63
Employee engagement���������� P. 65

Integrated Report 2021

34

Our strategies for creating value

Progress on the 5-Year Business Plan
5-Year Business Plan
Mizuho’s 5-Year Business Plan for fiscal 2019 through 2023 is focused on transitioning to the next generation of financial
services—building new forms of partnerships with our customers so that we can respond to their needs as the times change.
This business plan aims to build a stronger and more resilient financial group which our customers can depend on in the coming era.
In addition to the megatrends such as digitalization, the declining birthrate and aging population, and globalization, the global
spread of COVID-19 has triggered major, rapid changes in people’s lifestyles and the state of the economy and society. In order
to be a company that provides new value that goes beyond the conventional boundaries of finance in the coming era, we will
steadily implement forward-looking structural reforms in three interconnected areas as we transition to the next generation offinancial services.

Summary of initiatives up until fiscal 2020
The 5-Year Business Plan is composed of two phases. In the three-year period from fiscal 2019 to 2021 we will focus on thefull implementation of the structural reforms, building the foundations for the next generation of financial services.
We have been making steady progress on the strategies outlined in the 5-Year Business Plan since the first year. In the second year (fiscal 2020), when faced with the unprecedented changes in the business environment arising from the COVID-19
pandemic, we further advanced our strategies and achieved strong performance, exceeding our initial targets. As for our
financial results, Consolidated Net Business Profits for fiscal 2020 were ¥799.7 billion. In customer divisions, we surpassed
our performance for fiscal 2015, the last fiscal year before the introduction of negative interest rates in Japan, reaching thehighest level of profits since the introduction of our in-house company system in fiscal 2016. Additionally, we significantly
exceeded the 5-Year Business Plan’s initial target of ¥700 billion for fiscal 2021, reaching this level a year in advance.
In order to maintain the momentum of this growth, it is essential that we align ourselves with customers’ needs amidst the
pandemic as well as in the new world which will emerge after the pandemic, steadily advancing business structure reforms inorder to build new partnerships with our customers. Fiscal 2021, the third year of the 5-Year Business Plan, is a crucial year for
us to further advance the steady progress we are making on our initiatives and connect them to continued growth. While
adeptly responding to changing customer needs, we will steadily advance our structural reforms.
Consolidated Net Business Profits(¥ billion)

799.7

699.7

Consolidated
Net BusinessProfits

538.0

Of which,customerdivisions2

339.3

333.1

FY2016FY2017672.5

603.11

456.8

446.8

549.6

FY2018FY2019FY2020

1. Prior to recording one-time losses of ¥194.7 billion inlight of structural reforms.
2. Total for the Retail & Business Banking Company,
Corporate & Institutional Company, Global Corporate
Company, and Asset Management Company.
(Past fiscal year results were recalculated based on
fiscal 2020 management accounting rules.)5-Year Business Plan: Transitioning to the Next Generation of Financial Services
Basic policy

Implement forward-looking structural reforms focused on three interconnectedareas: business structure, finance structure, and corporate foundations

Resolve the mismatch that has arisen in the allocation of corporate resources and respond to new customer
needs in order to transition to the next generation of financial services

Go beyond the conventional boundaries of finance and create new value
incorporating both financial and non-financial products and services in order toforge new forms of partnerships with our customers
Open & Connected

Key strategy

Passionate & Professional

Draw on the strengths that Mizuho has cultivated thus far

1

Customer base, network,
trustworthiness &dependability

2

Financial functions,market presence, ability torespond to non-financial
needs

3

Approach business as a
unified group

Accelerate our digitalization initiatives and proactive collaboration with external partners

Our objective

35

Mizuho Financial Group

Build a stronger and more resilient financial group which our customers candepend on in the coming era

Finance structure reforms
By reallocating corporate resources and strengthening our stable revenue base, we are working to transition to a more effective business portfolio well-suited to capture stable revenue. Our CET1 capital ratio has increased to 9.1% on a Basel III
finalization basis, reaching our 5-Year Business Plan target level of the lower end of the 9 - 10% range.
ReferenceFor the finance structure reforms refer to the Message from the Group CFO beginning on P27
Corporate foundations reforms
Mizuho Research & Technologies, which consolidates and integrates our research, consulting, and IT functions into a single
core group company supporting non-financial domains, was formed through a merger in 2021. Mizuho Research &Technologies will go beyond the boundaries of a thinktank or IT system development company and collaborate with eachin-house company in order to create new added value by providing a combination of financial and non-financial services tomeet the diverse needs of our clients and society.
As for our HR strategy, we are making steady progress on the transition to a new group-wide HR framework that supports ourbusiness strategy. Also, in light of the COVID-19 pandemic, we are implementing initiatives to support flexible and diverse
workstyles.
ReferenceFor details on our HR strategy, refer to the Employee engagement section starting on P65
Reference Quantitative overview of our fundamental structural reforms
We are expanding our fundamental structural reforms initiatives announced in November 2017, and despite the impact of the
COVID-19 pandemic in fiscal 2020, we are making solid progress on all of our initiatives. Although we have achieved a level ofsuccess, there is still much more to accomplish and we will continue to advance these structural reforms.
FY2020
Reduction of approx.19,000 people
Approx. 80,000 people

Results-8,000 people-8,000 people(compared to the end of March 2017)

Reduction of approx.130 branches
Approx. 500 branches

Reduction of approx.¥140 billion1¥1.47 trillion2(compared to FY20173)

FY2023-8,000 people

FY2024FY2026-14,000 people -19,000 people

About Mizuho

On track-80 branches(compared to the end of March 2017)

Reduction excl. amortization expenses
related to the new core banking system

FY2021

Target-81 branches-100 branches-130 branches

Appendix

Expenses

Japanese branch
network

Workforce(estimates)

Message from theGroup CFO

We also reorganized our industry-specific operational frameworks for banking and securities, which serve large corporateclients, into five industry groups composed of industries with mutual affinities. We will leverage this framework to further
strengthen our ability to make proposals, which will enable us to strongly support clients’ business structure transformation inlight of shifts in industry structure after the pandemic and the movement towards a sustainable society. Outside of Japan, weare steadily capturing business opportunities from multiple angles by focusing our corporate resources on about 300 blue-chip
corporate groups worldwide having stable credit and potential for ancillary transactions via our Global 300 strategy, which is a
key strength.
ReferenceFor details on the specific business structure reforms, refer to the in-house company sections in this report(starting from P37)

Our strategies forcreating value

Business structure reforms
Structural changes to the economy and society—such as digitalization, the declining birthrate and aging population, and globalization—are accelerating as we look ahead to the post-COVID-19 era. In light of this external environment, in May 2021 wereorganized our branch network to have separate operational frameworks for retail customers and corporate clients, establishing a structure for responding to customers’ unique needs in a more specialized way.

Foundations for our
corporate value

We are implementing business structure reforms which draw on Mizuho’s strengths in order to address structural issues inthe economy, industry, and society in addition to implementing finance structure reforms to transition to more flexible business and revenue structures to respond to changes in the business and competitive environments. We are also implementing
corporate foundations reforms to support the continued competitive advantage of our business.

Data section

Three areas of structural reform

Message from theGroup CEO

Progress on the 5-Year Business Plan

-1 branch- ¥106 billion4- ¥118 billion4- ¥120 billion- ¥140 billion- ¥12 billion

1. Reduction excl. amortization expenses related to the new core banking system.
2. Group aggregate. New management accounting rules were applied from FY2019. Amount prior to change: ¥1.45 trillion.
3. Compared to estimate for FY2017 at the announcement of the fundamental structural reforms (Nov. 2017).
4. Excluding the effect of foreign exchange.

Integrated Report 2021

36

Our strategies for creating value

Retail & Business Banking Company

Individual customers

SMEs

Middle market corporations

To realize the wishes, hopes, andgrowth of our customers, we will
aim to be a partner that helps
retail customers design their lives,and a strategic partner for
corporate clients’ businessstructure transformation andgrowth strategy needs.

Naofumi Fuke

Masahiro Otsuka

Co-Head of Retail &Business Banking Company

Head of Retail & Business Banking Company

Basic policy

Business environment and challenges

We will aim to transition to a more stable revenue basethrough channel optimization and expansion into new
business areas. Our basic policy is to realize the wishes andhopes of our retail customers and the continued growth of
our corporate clients, working to build a sustainable retailbusiness which is responsive to the needs of our customers inthis new era. As we implement structural reforms in threeinterconnected areas—business structure, finance structure,and corporate foundations—we will create new value in bothfinance and non-finance domains by focusing the allocation of
our corporate resources on enhancements including for
digital marketing in a way that enables us to better respond to
customer needs, as well as on new business areas throughalliances with other companies.

As structural changes in customer needs accelerate, recently
society as a whole has been undergoing considerable changes
including changes to people’s lifestyles and the increasing
adoption of remote technology. In such times, retail customers
are in need of support for designing their lives in an era ofincreased longevity. And among SMEs and middle market
clients, there is increasing demand for solutions in areas suchas business structure transformation and growth support, inlight of the uncertain business environment. It is essential that
we fully respond to these changing needs and advanceinitiatives to address the accelerating use of online
communication. Amidst these changes in the businessenvironment, we must seek to take advantage of thesechanges in customer needs in order to create new business
opportunities while also allocating our finite corporate
resources in a way that enables us to establish a stablerevenue base.

Trends in performance
In fiscal 2020, amid challenges such as a decline in consumption and investment due to the COVID-19 pandemic, we
achieved Net Business Profits exceeding that of the previous fiscal year. This was the result of improving our top line,
including in corporate and retail investment business, as well as measures such as a reduction of expenses achieved
through our steady implementation of structural reforms. We will continue enhancing structural reforms in order to reduce
fixed costs and expand our stable revenue base.
(Group aggregate, management accounting, rounded figures, ¥ billion)

FY2016FY2017FY2018

676.4

679.9

698.0

12.2

42.5

75.0

FY2019FY2020

FY2021 Targets

Net Business Profits

1. Gross Profits and Net Business Profits include Net Gains related to ETFs.
2. Results are based on FY2020 management accounting rules, targets are estimates based on FY2021 management accounting rules.

37

Mizuho Financial GroupGross Profits

FY2020
results

 eclining birthrate and aging population, plus good health andDlengthening lifespans
Industry development & innovation
Sound economic growth

Building an optimal channel network
With the emphasis on remote technology growing stronger throughout society during
the COVID-19 pandemic, we will position our mobile and other related services as ourprimary channels and expand the remote and online services we offer, leveraging
digital technologies to enable transactions without the need to visit a branch. At thesame time, we will transform branches into consulting spaces offering one-stop
service for banking, trust banking, and securities, as well as remote consultations,allowing us to respond to a diverse range of customer consultation needs.
Related key sustainability areas (materiality)
Industry development & innovation

Number of core customers (10,000 users)

138

FY2018results152

159

FY2019results

FY2020results

Expanding into new business domains
Utilizing open collaboration and the adoption of advanced technology throughalliances with other companies, we are creating new value beyond the traditionalboundaries of finance in fields such as online lending, cashless payments, and thedata business, in order to formulate a new business model aligned to the ways thatsociety and our customers are changing. By combining the non-finance mobile-based
services of tech companies with our financial capabilities, we will also work to expand
transactions with new customer demographics.

Clients with business succession needs(thousand companies)

16.7

18.2

13.2

Related key sustainability areas (materiality)
Industry development & innovation

Sound economic growth
December 31, December 31, December 31,
2018
2019
2020

Highlights

Reorganizing our branch network into separate frameworks for retail customers and corporate clients

With the effects of changes in the social and business environment, including from lifestylechanges and the accelerated adoption of remote technology, structural changes in customer
and client needs are rapidly progressing, further expanding the importance of specialist
advice from financial institutions. In order to respond to the unique needs of retail customers
and corporate clients in a more specialized way, we have reorganized our branch network
into separate operational frameworks for retail customers and corporate clients. Throughthese measures, we aim to respond continually to increasingly sophisticated customer andclient needs, as well as to changes in society.

Highlights

The launch of the Digitalization Project

In response to new lifestyles that have resulted from changes in customer needs
in recent years, as well as from the impact of the COVID-19 pandemic, welaunched the Digitalization Project in January 2021 to expand the digital andremote services we offer for a wide range of transactions. Through this project, we will endeavor to provide transaction
services that are both convenient and environmentally friendly, enabling paperless services available anywhere, anytime,
without the need to visit a branch.

Integrated Report 2021

About Mizuho

FY2019results

Message from theGroup CFO

FY2018results

26.0
20.9

Our strategies forcreating value

Related key sustainability areas (materiality)

22.5

Foundations for our
corporate value

We aim to be a partner that helps retail customers design their lives in an age of
longevity. We are providing consulting on asset formation/management and asset
succession to match each individual customer’s unique goals, considering theirfinancial objectives and future outlook according to their different stages in life. We
also aim to be a strategic partner for SMEs and middle-market clients as they seek tomaintain or expand their businesses in a business environment with an uncertain
outlook. By offering sophisticated solutions as a united group, we are supporting ourclients’ business structure transformation and growth strategies.

Data section

Retail assets under management (¥ trillion)

Strengthening consulting

Appendix

Key strategies

Message from theGroup CEO

Retail & Business Banking Company

38

Our strategies for creating value

Corporate & Institutional Company

Large corporations

Financial institutions

Public-sector entities

Demonstrating our intrinsic worth as a value cocreation partner and establishing a reputation
as the most trusted bank in the corporate &institutional sector by supporting clients withsolutions for challenges they face andenhancing their corporate value.

Seiji ImaiHead of Corporate & Institutional Company

Basic policy

Business environment and challenges

In the current uncertain and rapidly changing businessenvironment, we support our clients in identifying actualissues and making strategy-level decisions through repeated,in-depth talks on their myriad and increasingly complex
business challenges. In addition, in the strategy execution
phase, the entire Mizuho group provides optimal solutions bydrawing on our industry and products knowledge, ourmeasured risk-taking capabilities, and our consulting
capabilities that effectively combine these elements. Throughcomprehensive support for the strategic management ofJapan’s leading large corporations, financial institutions, andpublic sector businesses, we are aiming to contribute to thesustainable growth and development of industry, theeconomy, and society.

As the impact of the COVID-19 pandemic becomes prolonged,
in addition to significant changes to the business environment
faced by clients, the transformation of industry structures isalso proceeding at an accelerating pace. The pursuit ofsustainability is another irreversible structural change, and isbecoming a key business challenge for clients as well. Under
this business environment, we will steadily address needs forfunding support and other forms of financing throughappropriate credit management based on the strong client
relationships that we have cultivated thus far. Additionally, we
recognize the importance of accurately understanding the
major trends of structural changes in society and industry,and of further demonstrating our role as a partner co-creating
value with our clients, not only through lending, but also
through efforts such as joint investment and business tie-ups
in fields other than finance, in order to support the sustainable
development of our clients.

Trends in performance
In fiscal 2020 the downside impact of the COVID-19 pandemic was less severe than we had estimated at the beginning of
the fiscal year, and by appropriately responding to client requests for financing support and capital base expansion needs
we achieved a new all-time-high for profitability since the launch of our in-house company system. In fiscal 2021, despitea decline in Gross Profits year-on-year, we are maintaining a high target of ¥270 billion for Net Business Profits in part due
to the cost-reduction effect of the structural reforms.
(Group aggregate, management accounting, rounded figures, ¥ billion)

459.5

245.7

491.9

466.0

286.1

270.0

Gross Profits
Net Business Profits

FY2016FY2017FY2018FY2019FY2020

FY2021 Targets

1. Gross Profits and Net Business Profits include Net Gains related to ETFs.
2. Results are based on FY2020 management accounting rules, targets are estimates based on FY2021 management accounting rules.

39

Mizuho Financial GroupKey strategies
Strengthening approaches to sustainability

Total equity underwriting worldwide (rank)

As we conduct in-depth engagement with a focus on sustainability, we aim togenerate business in a wide range of fields, not only in terms of finance, but also by
working to resolve challenges faced by clients, industries, and society as a whole.

2

Message from theGroup CEOCorporate & Institutional Company

Related key sustainability areas (materiality)
Sound economic growth

Environmental considerations

4

4

FY2018results

FY2019results

FY2020results

FY2021targets

About Mizuho

3

In particular, as priority areas we will strongly emphasize responding to client needs
for asset rebalancing in connection with business portfolio reviews, supporting theestablishment of long-term business plans for decarbonization, and transition finance.

In May of 2021, we revised our operational framework to integrate our banking andsecurities functions with the launch of the industry group (IG) system, and built astructure under which the head of each IG takes the lead in proposing, promoting, andexecuting sector strategy. In order to enable the prompt detection of rapidly changing
industry trends, and to ensure that corporate resources are invested both efficiently
and in a way that opportunities are not lost, we aim to create a continuous deal
origination structure under which IG heads flexibly allocate and reallocate corporate
resources and promote the training and development of specialist personnel wellversed in each sector.

1

1

1

FY2018results

FY2019results

FY2020results

FY2021targets

Our strategies forcreating value

Industry development & innovation

1

5

Foundations for our
corporate value

Related key sustainability areas (materiality)

Domestic straight bonds(underwriting amount) (rank)

Rebalancing corporate resources
As the finalization of the new Basel standards is on the horizon, we are working to build
a portfolio that realizes appropriate risk and return. Cross-shareholdings are a key topic
for the Corporate & Institutional Company, and in addition to continuing to gradually
reduce such holdings, we will take steps to minimize our assets in low-profitability areasand invest instead in, for example, more profitable financial products.

M&A amount (deals related toJapanese companies) (rank)
3
6

Related key sustainability areas (materiality)
Corporate governance
15
FY2019results

FY2020results

FY2021targets

Data section

FY2018results

Highlights

Supporting the first sustainability-linked bond issuance in Japan

AppendixMizuho arranged the issuance of Japan’s first sustainability-linked bonds (SLBs) for Hulic,which were issued for the purpose of widely disseminating the company’s sustainability
initiatives based on their long-term environmental vision. SLBs are a new type of SDG
bond in which the conditions of the bond are linked to the company’s achievement ofsustainability performance targets (targets based on the issuer’s corporate strategy), andthis corporate bond has been recognized by the Ministry of the Environment as the firstmodel case.

Highlights

Message from theGroup CFO

Enhancing sector strategies

Revision of our operational framework

In order to provide even more sophisticated financial services in response to clients’increasingly complex business challenges, which include sustainability, digitaltransformation, and transformation of business beyond conventional business models,
we conducted a fundamental revision of our operational framework. Our five industry
groups, restructured to integrate banking and securities and classified by industry
category, and two regional groups, restructured based on region and industry category,
will provide clients with optimal solutions.

Integrated Report 2021

40

Our strategies for creating value

Global Corporate Company

Americas

EMEA

East Asia

Asia & Oceania

We aim to be a strategic partner leveraging ourglobal network and comprehensive financial
solutions spanning banking, trust banking, andsecurities to support our clients’ global businessdevelopment.

Seiji ImaiHead of Global Corporate Company

Basic policy

Business environment and challenges

As a strategic partner supporting our clients’ global businessdevelopment, we will leverage our extensive network in Asian
economic zones and our presence in the US capital markets
to provide comprehensive financial solutions to clients in eachregion.

In addition to varying degrees of economic recovery from the
COVID-19 pandemic in each region and industry due todifferences in vaccine availability and economic measures,the global economy faces various risk factors including
concerns of the spread of COVID-19 variants and growing
geopolitical risk. Furthermore, increasing interest in the SDGs
and ESG topics has triggered the transformation of businessstructures in all industries and business categories.

We will build a stable and profitable business portfolio toenable sustainable growth while being aware of constraining
factors, including the external regulatory environment andnon-JPY currency funding, and recognize the acceleratingtransformation of business structures triggered by COVID-19
and the SDGs/ESG as business opportunities as we provide
clients with sophisticated financial services.

Under this business environment, in addition to sophisticatedfinancial intermediary capabilities, financial institutions must
be able to provide clients with consultations regarding
revisions to their supply chains and shifting to carbon neutral,and deliver multi-faceted solutions and financial products.

Trends in performance
In fiscal 2020, in addition to growth in interest income due to facilitating lending to support clients’ challenging situations
and efforts to improve profitability, as well as steady efforts to capture business in the European and US capital markets—
which were thriving in light of the supply of liquidity and the low interest rate environment—we significantly grew ourGross Profits. Additionally, through strict control of costs outside of Japan and Credit Costs, we realized profit growth
exceeding the fiscal 2020 target outlined in the 5-Year Business Plan.
(Group aggregate, management accounting, rounded figures, ¥ billion)

410.9

175.6

450.6

457.0

210.0

202.0
Gross Profits
Net Business Profits

FY2016FY2017FY2018FY2019FY2020

FY2021 Targets

1. Gross Profits and Net Business Profits include Net Gains related to ETFs.
2. Results are based on FY2020 management accounting rules, targets are estimates based on FY2021 management accounting rules.

41

Mizuho Financial GroupEnvironmental

Expanding into new business domains
As outlined in the 5-Year Business Plan, we are continuing to focus on transaction
banking in Asia and business in US capital markets by strengthening our solution
capabilities and expanding our product line-up.

FY2020Americas DCM

No. 8

No. 10No. 9(excluding US banks)(No. 2)(No. 4)(No. 3)

Share

5.4%

3.4%

4.7%

2

Americas LCM

No. 7

No. 7

No. 8

(excluding US banks)(No. 2)(No. 3)(No. 2)

Share

3.4%

3.5%

3.3%

1. Bonds issued by investment-grade companies, bookrunner basis
Source: Dealogic
2. Loans issued by investment-grade companies, bookrunner basis
Source: Refinitiv

Transaction banking

Impact of decreased
interest rates
Average annual
growth rate
4.3%

In addition, in light of the growing awareness around the world of the SDGs and ESG
topics, on a global basis we are strengthening our advisory services for green financeand green transitions in order to contribute to the resolution of environmental andsocial challenges through our business operations.
Related key sustainability areas (materiality)
Industry development & innovation
Sound economic growthconsiderations
Corporate governance
Environment & society

FY2018results

Environmental

Addressing structural issues

FY2019results

FY2020results

Amount of arranged ESG-related financing
Average annual
growth rate
58.6%

In light of constraints including the international regulatory environment and non-JPY
currency funding, by shifting corporate resources from areas with little potential for
profit to high-profitability businesses and growth fields, we will increase the quality ofour business portfolio.
In addition, by consolidating international operations and utilizing technology to
optimize costs outside of Japan, we are working to enhance the services we provide
to clients by streamlining operations.
FY2018results

Highlights

FY2019results

FY2020results

FY2021targets

Strengthening our presence in the North American capital markets and transitioning to the next generation offinancial services

In the area of North American capital markets business, which is a focus area of our key
strategies, we significantly grew our share of DCM underwriting for investment grade
issuances in North America. In addition, we joined DirectBooks, a consortium formed for the
purpose of standardizing and streamlining the process of connecting underwriting financial
institutions with investors for investment grade DCM issuances, as the consortium’s only
Asian financial institution to be designated a “Premier Partner Bank”. We will continue working
to enhance our high level of service for financing in the North American capital markets.

Realizing sustainability for the environment and society

Appendix

Highlights

About Mizuho

Industry development & innovation
Sound economic growthconsiderations
Corporate governance
Environment & society

FY2019Message from theGroup CFO

Related key sustainability areas (materiality)

FY20181

Our strategies forcreating value

League tables

Foundations for our
corporate value

Enhancing current business areas
Thus far we have leveraged our global network to provide consulting services toJapanese corporate clients operating outside of Japan, and by focusing our corporate
resources on about 300 blue-chip corporate groups worldwide having stable credit
and potential for ancillary transactions via our Global 300 strategy, we areendeavoring to bolster stable revenue and diversify our revenue sources.
Furthermore, we are working to strengthen risk management in light of changes toindustry structures during and after the COVID-19 pandemic, and we are building ahigh quality portfolio in terms of both stability and profitability.

Data section

Key strategies

Message from theGroup CEOGlobal Corporate Company

At Mizuho, we undertake various initiatives to contribute to the achievement of the SDGs,
such as green finance initiatives and the provision of financial education for children fromunderserved households.
We have also designated ESG Champions in each region for the purpose of strengthening ourfinancial advisory capabilities on ESG topics. By sharing our ESG expertise globally andproviding clients with sophisticated solutions, we will contribute to solving social issues froma financial perspective.

Integrated Report 2021

42

Our strategies for creating value

Global Markets Company

Investors

As a partner with expert knowledgeof market mechanisms and theability to draw on a range ofintermediary functions, we willfurther integrate our banking, trust
banking, and securities capabilities
to offer the best products andservices for our clients’ varied
needs.

Masatoshi Yoshihara

Yasuhiro Shibata

Co-Head of Global Markets Company

Co-Head of Global Markets Company

Basic policy

Business environment and challenges

The Global Markets Company engages in sales and trading(S&T) in order to provide clients with market product-based
solutions, and we also conduct banking operations, including
asset and liability management, securities investment, andother related activities.

According to projections from the International Monetary
Fund, the global economy is expected to stabilize and achieve
growth of 6.0% in 2021. However, gaps in recovery between
countries are widening, and a high level of uncertainty
continues. While the economy is likely to return to normal asa result of the fiscal and monetary policies of each country, as
well as the rollout of COVID-19 vaccines, the structure of themarket appears to be undergoing considerable changes witha growing interest toward whether the US Federal Reserve
Board will phase out monetary easing policies amid concerns
over a rise in inflation rates.

We have set out a basic strategy to develop a framework foroffering optimal products and services, as well as tostrengthen our market presence.
In our S&T operations, by optimizing our global network andproducts framework, we will provide a broad range ofintermediary functions. In our banking operations, we will
enhance the sophistication of our flexible ALM and portfolio
management while maintaining a focus on achieving abalance between realized gains and unrealized gains/losses.

In this environment, we will strive to consistently respond to
our clients’ increasingly varied risk hedging needs andinvestment needs. At the same time, we will also strive toenhance our ALM and portfolio management and promotesustainability in each field.

Trends in performance
Our Net Business Profits fell temporarily in fiscal 2018 when we began restructuring our securities portfolio amid suchfactors as a shrinking difference in long- and short-term interest rates in the US. However, as a result of our ALM andportfolio management based on a balance between realized gains and unrealized gains/losses, as well as further
promoting our strategy to integrate banking and securities businesses, we recorded high Net Business Profits at ¥207.8
billion in fiscal 2019 and ¥268.2 billion in fiscal 2020. We expect to achieve Net Business Profits of ¥253 billion in fiscal 2021.
(Group aggregate, management accounting basis, rounded figures, ¥ billion)

487.2

471.0

268.2

253.0

411.5
207.8

Gross Profits
Net Business Profits

FY2016FY2017FY2018FY2019FY2020

FY2021 Targets

1. Gross Profits and Net Business Profits include Net Gains Related to ETFs.
2. Results are based on FY2020 management accounting rules, targets are estimates based on FY2021 management accounting rules.

43

Mizuho Financial GroupEnhance global ALM management

Volume of Asian/emerging market
foreign exchange transactions
by non-Japanese companies

We will contribute to Mizuho’s overall business strategy through diversified foreign
currency funding sources, including with efficient cash flow management and the useof yen asset collateral, as well as by enhancing our management methods of ALM in
yen and other measures. We will also contribute through balance sheet managementthat accomplishes both stability and efficiency on a global basis.

(With FY2019 results as 100)

100

113

120

Related key sustainability areas (materiality)
Corporate governance
FY2019results

FY2020results

FY2021targets

Volume of interest rate derivatives(With FY2019 results as 100)

142

125
100

Related key sustainability areas (materiality)
Sound economic growth

Corporate governance

Structural reforms for corporate foundations
In order to continue providing high quality services to our clients in the future, we arebuilding next-generation trading rooms and market IT systems in line withtechnological advancements. We are also allocating our corporate resources
strategically toward upgrading our infrastructure and reducing our costs in order tomaintain and strengthen our competiveness. Moreover, we are improving our inhouse company-based HR management and planning functions based on reforms to
our HR framework. In addition, we are also advancing sustainability initiatives in eachfield for investment, financing, and S&T.

FY2019results

FY2021targets

Internal management accounting basis

Foreign currency funding amounts
utilizing yen-denominated asset
collateral(With FY2019 results as 100)

175

145
100

Related key sustainability areas (materiality)
Sound economic growth
Corporate governance

FY2020results

Industry development & innovation
FY2019results

FY2020results

FY2021targets

Data section

Internal management accounting basis. Net increaseamounts are accumulated from FY2019 onward.

Highlights

Developed and patented an early warning market management system

The early warning market management system provides visualizations of structuralchanges, market stage definitions, forecasted return distributions, among other items, inthe financial markets based on the analysis of large volumes of market data leveraging
machine learning. At the Global Markets Company we started using this system inMarch 2018 as a tool to support investment decisions in investment-related
departments. We also acquired a patent for the system in March 2021.

Highlights

Our strategies forcreating value

We are strengthening our solution-based approach to meet the wide-ranging market
needs of our clients through unified operations under common management acrossbanking and securities. While reforming our foreign exchange business, we willcontinue to strengthen and diversify our product lines toward diversifying andstabilizing our business portfolio to further enhance our presence in the global
markets.

Message from theGroup CFO

Internal management accounting basis

Foundations for our
corporate value

 tabilize revenue by diversifying product lines and enhancing businessSmodels that reflect client needs through further promotion of our strategy tointegrate banking and securities businesses

Advancing futurization through a leading-edge lab created by IBM and Mizuho’s Global Markets Company

The Global Markets Company launched a project together with IBM Japan and IBM
Research, aiming for such goals as transforming business with leading technology.
Through efforts to provide support to trader operations with technologies such as AI for
the optimization of credit portfolios, and by investigating the use of quantum computing
in market operations, we will work to realize the provision of valuable solutions thatleverage cutting-edge technologies and data.

Integrated Report 2021

Appendix

Sound economic growth

About Mizuho

Key strategies

Message from theGroup CEOGlobal Markets Company

44

Our strategies for creating value

Asset Management Company

Investors

Becoming our customers’ best partner for mediumto long-term asset formation while positively
contributing to the realization of a sustainable
society and economy through asset management.

Masamichi Ishikawa
Head of Asset Management Company

Basic policy

Business environment and challenges

By strengthening our investment capabilities and ability toprovide solutions in order to enhance the added value
provided by our asset management business, we act as partof a unified group to provide products and consulting services
which meet customers’ ever changing needs. We areproviding retail investors with support for medium- to longterm asset formation and providing institutional investors,
such as pension funds and financial institutions, withsolutions in order to positively contribute to the realization ofa sustainable society and achieve medium- to long-term
growth in our asset management business. In addition, weare transforming our business processes using digital
innovation to build an effective and advanced business base.

In addition to factors such as the aging population anddeclining birthrate and negative interest rates, the prolonged
COVID-19 pandemic is also making the future increasingly
uncertain. Within this uncertain environment going forward,
retail investors require greater access to a wealth of
information and a wider range of investment products andservices to assist with asset formation for the future. Pension
funds, financial institutions, and similar clients require highlevel consulting and investment capabilities responding to theincreasing diversification of pension plans and investment
needs. Given the growing public interest in a sustainable
society and economy, including in decarbonization andmeasures to address climate change, we are also pursuing
initiatives to positively contribute to the sustainable growth ofcompanies in our investment portfolio through asset
management, as well as to expand investors’ medium- tolong-term investment returns.

Trends in performance
While the highly uncertain market environment persisted under the COVID-19 pandemic, our Net Business Profits
exceeded our fiscal 2020 target due to factors including an increase in our balance of assets under management,
primarily from investment inflow to our publicly traded investment trust business. Going forward, we will continuehoning our competitiveness and aiming to achieve growth at the Asset Management Company over the medium to longterm by strengthening our investment capabilities and ability to provide solutions and by pursuing efficiency.
(Group aggregate, management accounting, rounded figures, ¥ billion)

60.0

52.9

50.4

13.3

10.9

FY2019FY202019.0
Gross Profits
Net Business Profits

FY2016FY2017FY2018FY2021 Targets

1. Gross Profits and Net Business Profits include Net Gains related to ETFs.
2. Results are based on FY2020 management accounting rules, targets are estimates based on FY2021 management accounting rules.

45

Mizuho Financial GroupKey strategies

To respond to institutional investors’ diverse needs, we are focusing on an expanded
line of alternative asset products and on ESG investments. For our pension fundclients, we are offering investment solutions which are based on multi-faceted
analysis and which account for clients’ investment and financial situations, as well as
consulting proposals which cover pension plan configuration. For our financial
institution clients, we are offering solutions for both assets and liabilities, addressing
needs for outsourcing investment of securities and business issues related to deposits
in excess of loans.
Related key sustainability areas (materiality)
Declining birthrate and aging population, plus good health and lengthening lifespansSound economic growth
Environmental considerations

Strengthening our foundations for growth over the medium to long term
To focus on core competencies, we are consolidating our corporate resources,
beginning with our personnel, into focus areas. This is enabling us to refine ourinvestment capabilities and our ability to provide solutions and to elevate the added
value of our asset management functions. Additionally, we are reinforcing ourfinancial foundations by working to resolve medium- to long-term issues in our costand revenue structures, and we are strengthening our foundations for businessgrowth over the medium to long term by undertaking innovation and transforming
our business processes, among other efforts.

Highlights

Sound economic growth

Human capital

FY2020results

FY2021targets

Balance of publicly traded investment trusts
excluding ETFs.

DB/DC pension assets undermanagement balance(¥ trillion)

9.5

9.0
7.7

FY2019results

FY2020results

FY2021targets

Total balance of assets in defined benefit (DB) anddefined contribution (DC) pensions (corporate andindividual-type DC pensions).

Number of individuals enrolled
in iDeCo*(thousand)

267
224

173

FY2020results

FY2021targets*Individual-type defined contribution pension plans

Participation in Net Zero Asset Managers initiative

In December 2020, Asset Management One became the only Japanese asset management firm to be
an initial signatory of the Net Zero Asset Managers initiative, which is committed to achieving net
zero greenhouse gas emissions. With the impacts of climate change materializing across a number offields, we will continue to act as a responsible institutional investor by facilitating the transition to a
low-carbon society through engagement and by fulfilling our fiduciary duties to our clients.

Positively contributing to achievement of the SDGs through a global infrastructure debt fundAppendix

Highlights

About Mizuho

FY2019results

FY2019results

Related key sustainability areas (materiality)
Industry development & innovation

5.9

Message from theGroup CFO trenthening our ability to provide products and consulting to institutionalS
investors

9.6

8.6

Our strategies forcreating value

Declining birthrate and aging population, plus good health and lengthening lifespansSound economic growth
Environmental considerations(¥ trillion)

Foundations for our
corporate value

Related key sustainability areas (materiality)

Publicly traded investment trust
assets under management balance

Data section

Focusing on asset management services for retail investors
To respond to the asset formation needs of retail investors, we are offering a broad
range of products, from products focused on capturing stable medium- to long-term
returns to products invested in global stocks likely to produce high long-term growth.
We are also optimizing investment in fund wraps and providing products tailored todefined contribution corporate pensions, individual-type defined contribution pension
plans (iDeCo), and installment-type NISA. Additionally, we are positively contributing
to proactive investment of financial assets in Japan by improving our provision of
educational materials on investing and information on products and markets as well
as by working together with distributors to provide after-sale services for retailinvestors.

Message from theGroup CEO

Asset Management Company

In January 2021, Asset Management One Alternative Investments (AMOAI) launched its third
global infrastructure debt fund. In making investment decisions for the fund, AMOAI assesses
the impacts large-scale projects will have on the natural environment and local communities
and invests only in those projects which have taken measures to comply with the Equator
Principles. In addition, AMOAI has reflected its commitment to positively contributing toachievement of the SDGs through the fund by incorporating in the investment process bothmeasurement and assessment of the impacts of infrastructure projects. We will continue todevelop investment products to meet clients’ needs going forward.

Integrated Report 2021

46

Our strategies for creating value

Global Products Unit

Investment banking

Transaction banking

We aim to fortify our sophisticated expertise ineach product area as a team of specialists as we
promptly ascertain changing trends in thebusiness environment and economic activities
and integrate our global operations and intragroup functions to offer optimal solutions.

Masahiro Kihara
Head of Global Products Unit

Basic policy

Business environment and challenges

At the Global Products Unit, our activities are primarily
divided into two areas: investment banking and transaction
banking. In the field of investment banking, we offer financing
services through the capital markets—such as syndicatedloans and corporate bond issuance—and we also offer
intermediary, advisory, and finance arrangement services in
the M&A and real estate fields. In the field of transaction
banking, we offer settlement services in Japan andinternationally, funds management, as well as foreignexchange and other trade-related financial services.

The business environment that our clients are faced with isshifting at a rapid pace as uncertainty rises in the global
economy and social conditions amid the continuing COVID-19
pandemic. In particular, we recognize that trends such astransforming business structures to realize sustainablebusiness and the reconstruction of global supply chains arebringing about changes in clients’ business itself, andbecoming a strong and intensifying undercurrent.

We will continue fulfilling our corporate social responsibilities
as a financial institution while supporting the strategies of
in-house companies and the Mizuho group as a whole toovercome challenges faced by our clients and society. To thisend, as a unified group, we will provide solutions founded on
our sophisticated financial product expertise, and utilize thatexpertise to take measured risks when providing financing.
In addition, by continually reviewing the allocation of
corporate resources based on the characteristics of eachfinancial product, and through digitalization, we will work to
improve operational efficiency and expand new businessareas, thereby enhancing productivity and broadening
business opportunities from a medium- to long-term
perspective.

At the Global Products Unit, we aim to continue providing
ideal solutions for client needs by combining our
sophisticated expertise in each business field with the various
functions that Mizuho provides.
Specifically, as we work to realize sustainable businesses, wewill continue to offer our expertise and services and provide
support for business fields including M&A and real estate, andsecuritization in order to supply the funding necessary totransform business structures for decarbonization and expand
new, growing business areas through financial advisory andother services.
In addition, in response to the trend of reconstruction of
supply chains, the Global Products Unit will also continue
working closely with offices in Japan and around the world toaddress client needs.

Key strategies
Providing effective solutions across banking, trust banking, securities, and other group companies
Together as a united group we aim to provide optimal, situation-specific solutions to offer the best support for initiatives basedon clients’ corporate and growth strategies. In addition to offering our expertise leveraging the strengths of our banking, trust
banking, securities, and other group companies, by further strengthening coordination between these entities we are working toprovide clients with seamless solutions.
Related key sustainability areas (materiality)
Industry development & innovation

47

Mizuho Financial Group

Environmental considerations

 rincipal accomplishments inPinvestment banking

As our clients accelerate their global operations, we are addressing these needs byenhancing Mizuho’s operating framework on a global basis through close
coordination with offices in Japan and other countries—especially those in Asia. We
are also striving for stable operations by gradually upgrading infrastructure whichforms the foundation from which we provide our solutions.

FY2020 results
1

For example, in the field of transaction banking, we are working to enhance financial
management, foreign exchange control, and other functions, along with strengthening
our operational capabilities.

Syndicated loans

No. 1

Japan publicly offeredbonds2

No. 1

ABS lead underwriter3

No. 1

1. Amount basis, bookrunner basis
2. Underwriting amount basis (excluding our own bonds)
3. Amount basis, asset-backed securities

About Mizuho nhancing our global operating framework and honing financial productEexpertise

Message from theGroup CEOGlobal Products Unit

FY2020 results

Expansion into new business areas
In order to meet the increasingly diverse and complex needs of our clients, Mizuho
must create and provide solutions beyond those offered in our existing line-up, taking
into account the changing trends in society.
In addition to our financial product expertise, we will work to expand business from along-term perspective by developing and enhancing products based on the growing
awareness of sustainability and advances in digitalization.
Related key sustainability areas (materiality)
Industry development & innovation
Sound economic growthHighlights

Cashmanagement
services4

Cash Management
Survey No. 1(5 years in a row)

Custody5

Custody survey No. 1(10 years in a row)

4. CMS survey rankings (in the Japanese market) in Euromoney
magazine
5. Holding and managing securities for securities investments.
Custody bank survey rankings (in the Japanese market) in
Global Custodian magazine

Environmental considerations

Providing solutions amid the COVID-19 pandemic

1. C ontributing to the stabilization of client companies
through financeAmid restrictions on economic activities as aresult of the COVID-19 pandemic, we at Mizuho
have appropriately responded to financial
support requests from our clients.
While taking into consideration matters suchas clients’ unique situations and theenvironmental changes that affect theirbusinesses, we have provided funding support
in the form of syndicated loans and corporate
bonds, and responded agilely to their needs,
including securing liquidity on hand andtransforming their business structures.

Total publicly offered bonds (Japan)
Underwriting amount (¥ billion)

3,718.8

4,163.2

Share (%)

Syndicated loans
Underwriting amount (¥ trillion)

4,642.4

10.2
8.3

21

20

21

FY2018FY2019FY2020Source: Mizuho Securities FY2020 financial results
available on the Mizuho Securities website

Share (%)

9.0

35

38

40

FY2018FY2019FY2020

Our strategies forcreating value

 rincipal accomplishments inPtransaction banking

Human capitalFoundations for our
corporate value

Industry development & innovation

Data section

Related key sustainability areas (materiality)

Message from theGroup CFO

We are also continuously working to hone our expertise as an organization bystrategically cultivating the pool of professional talent in each product field.

Source: Mizuho Financial Group FY2020 financial results
available on the Mizuho Financial Group website

We will continue our efforts to respond toclient needs in a timely manner.

Appendix

2. Supporting the digitalization of clients’ general meeting of shareholders
Mizuho Trust & Banking has developed “Smart Benefits”, a service through whichshareholders can apply for benefits via a smartphone.
In addition to enhancing convenience for shareholders, this service enables theissuing companies to reduce mailing and aggregation costs, and devise additional
reduction of mailing costs through the use of digital gifts.
We will continue our efforts to digitalize shareholder-related services and to provide
tools for communication with shareholders.

Integrated Report 2021

48

Our strategies for creating value

Research & Consulting Unit

As the starting point of Mizuho’s value creation,
we leverage our extensive insights into industry,the economy, and society, as well as our highlevel of expertise, including in sustainability anddigitalization, to contribute to the creation of newvalue for our clients and society.

Yasuhiko Ushikubo
Head of Research &Consulting Unit

Basic policy

Business environment and challenges

To respond to structural changes in client needs and fulfill ourrole as the starting point of Mizuho’s value creation, we areworking to provide sophisticated, cutting-edge value that
contributes to solving issues for our clients and society,including through sustainability and digitalization, bydeepening and expanding our non-financial functions andcombining them with the capabilities of the entire group.

In addition to the establishment of new perspectives andbehaviors and the acceleration of digitalization in light of the
COVID-19 pandemic, the trend toward sustainability is also
rapidly advancing, including through a growing corporate
focus on initiatives for decarbonization and a recycling-basedsociety. Against the backdrop of accelerating structuralchanges in the economy, society, and industry, as well as thegrowing diversity and sophistication of client and societal
challenges and needs, we aim to create new value for ourclients and society through the early identification of suchdevelopments, and by fully drawing on the financial andnon-financial capabilities of the Mizuho group.

Business structure reforms
We will continue advancing the optimization of business
operations and resources in swift response to signs of change
in the economy, society, and industry, as well as transforming
our business based on changes in the business environment
during and after the COVID-19 pandemic.
Finance structure/corporate foundations reforms
In addition to furthering unified management within the unit
to achieve an increased level of various synergy effects andimproving operational efficiency through such measures as
consolidating redundant tasks, we are advancing various
initiatives, including strengthening our personnel capabilities
through the implementation of our new HR strategy, which
focuses on the action principle of “Passionate &Professional”.

The Research & Consulting Unit possesses extensive
knowledge related to industry, the economy, and society, as
well as sophisticated expertise in sustainability anddigitalization. We are working together as a unit in initiatives
such as providing information from research backed by ourknowledge and expertise and supporting business throughconsulting services. In this way, we aim to become a sourceof Mizuho’s value creation and strengthen our capabilities asa trusted partner sharing knowledge with our clients andsociety.

Key strategies
Enhancing research and origination capabilities
By conducting thorough research with a clear sense of purpose and with the aim of enhancing Mizuho’s corporate strategy andexpanding in-house companies’ business, we contribute to strengthening Mizuho’s earnings power as well as our brand andreputation.
We will strengthen our origination capabilities linking research to business with a focus on Mizuho’s management and in-housecompany priority areas such as cross-sector and new business. We can accomplish this by strengthening our researchcapabilities via further collaboration within the unit and by deepening the integration between macro and semi-macro areas.
Related key sustainability areas (materiality)
Industry development & innovation

49

Mizuho Financial GroupSound economic growth

Environmental considerations

While shifting our resources to sustainability transformation and digital transformation areas, where we expect growing clientneeds, we are also working to expand the areas in which we can serve clients by combining the consulting capabilities of the
newly established Mizuho Research & Technologies.
Related key sustainability areas (materiality)
Declining birthrate and aging population, plus good health and lengthening lifespansSound economic growth
Environmental considerations

Industry development & innovation

About Mizuho

Promoting value chain-based consulting
We are promoting a value chain-based model of consulting which enables us to leverage our consulting services to generatebusiness for the entire Mizuho group, thereby contributing to the expansion of business for each in-house company.

Message from theGroup CEO

Research & Consulting Unit

Also, we will enhance collaboration between the consulting capabilities and the IT capabilities of the newly established Mizuho
Research & Technologies.
Related key sustainability areas (materiality)
Industry development & innovation

MMOne’s evolution
Mizuho Membership One (MMOne) is our member-exclusive service for corporations offering access to and applications ofMizuho’s insights. We will enhance both face-to-face and remote service channels and evolve MMOne into a platform thatprovides high added value, including in non-finance fields. This will enable us to contribute to a broad range of needs andsolutions in line with the growth stage of corporate clients, particularly SMEs and middle market firms.
Related key sustainability areas (materiality)

Highlights

Foundations for our
corporate value

Industry development & innovation

Providing information from research on climate change issues

Data section

In regard to climate change issues, which have been gaining attention
around the world, we formed a cross-unit project with a wide range of
departments and issued two comprehensive reports entitled “The true natureand future of climate change issues”.
The reports provide an overview of matters such as the true nature of climatechange issues and the impacts these issues have on corporate activities, andintroduce topics such as trends in policies, the private sector, finance, andconsumer preferences outside of Japan, as well as climate change policy
trends in Europe, the US, and China. The reports also explore the responsethat is required from Japan.

Supporting the initiatives for the implementation of MaaS in society
Appendix

Highlights

Our strategies forcreating value

We are driving the digital transformation of clients and Mizuho itself by leveraging the digital technology expertise of our unit topursue the digitalization of operations, the shift to data monetization, the building of value co-creation models, and businessdesign, among others.

Message from theGroup CFO

Strengthening initiatives for the active use of IT/digital

Mobility as a service (Maas), a next-generation mobility service, is expandingaround the world, including in regions in Europe, and serious considerations
are beginning to be made in Japan as well.
At the Research & Consulting Unit, we work to support policymaking andbusiness creation toward the adoption of new services in society by
combining our industrial research capabilities with our digital and corporate
management consulting capabilities.

Integrated Report 2021

50

Our strategies for creating value

Sustainability
By promoting sustainability initiatives, we at Mizuho aim to operate in a way that considers creation of value for ourvaried stakeholders and improve corporate value through sustainable, stable growth for the entire group, thus
contributing to the achievement of the Sustainable Development Goals (SDGs).
We are advancing sustainability initiatives group-wide as an integral part of our strategy, in line with both our key
sustainability areas and our Basic Policy on Sustainability Initiatives, which sets forth our definition of sustainability at
Mizuho, our fundamental approach, and our methods.
In fiscal 2020, we have strengthened our action on climate change, environmental and social risk in the value chain,and sustainable business, based on thorough discussions between our business execution and supervisory lines andwith attention to both opportunity and risk. We have taken this step in light of the changes in the social context, ourown strategy and initiatives, and our stakeholders’ evaluations and expectations.

Sustainability for
MizuhoMizuho’s sustainable and steady growth, environmental conservation, and the sustainable development andprosperity of the economy, industry, and society both in Japan and around the world

Corporate Identity

Basic Policy on Management
Basic Policy on Sustainability Initiatives

Mizuho’s group strategy

5-Year Business Plan
Key sustainability areas
Business

Management that takes into
consideration the creation of value
for various stakeholders

Corporate foundations

Improvement of corporate value
through sustainable and stable
growth of the company

Contribution to environmental conservationand the sustainable development andprosperity of the economy, industry, andsociety both in Japan and around the world

51

Mizuho Financial Group

Contribution toachieve the SDGs

Specific initiatives
Approaches toimplementing
initiatives
In regards to the economy,
industry, society, andenvironment, Mizuho
shall increase its positive
impacts and decrease its
negative impacts, both
direct and indirect.

Mizuho, as a financialgroup, shall focus on
indirect impacts it
generates through its
business and dialogue withclients (engagement).

In the event of differencesof opinions among
stakeholders, the groupshall make a comprehensive
decision by employing along-term perspective
towards harmony with theeconomy, industry, society,and environment.

Execution

President &Group CEORisk Committee

Overseessustainability
initiatives

Executive
Management
Committee

Chief Strategy In charge of items relating to theplanning and administration of
Officersustainability initiatives(Group CSO)
Department in charge: Strategic Planning Department

Relevant departments

Set key sustainability areas
Provide the necessary instructions and support for the promotion ofsustainability initiatives appropriate for each company

Group companies
Mizuho Bank
Mizuho Securities

Mizuho Trust & Banking
Mizuho Research & Technologies

Other group companies

In addition, the Risk Committee (an advisory body to
the Board of Directors) and Board of Directors provide
oversight. Active discussions take place with outside
directors and committee members who haveexperience and expertise in sustainability.
Resolutions and reports at the Board of Directors (FY2020)
Revision of Environmental Policy
Resolutions Key sustainability areas / sustainability
target reporting
Status of sustainability initiatives
Reports

Status of response to TCFD
Recommendations
Review of management system for
responsible financing, investment, andother services

Deliberations related to oversight(Comments from outside directors / committee members)• Mizuho’s strengthening of its sustainability initiatives isheading in a positive direction.
Mizuho must find a balance with trends inside and outside
Japan.

• Mizuho must go beyond simply stating its group initiatives

and demonstrate progress on its initiatives in a visible way.

• It is important that Mizuho’s executive officers andemployees gain a thorough understanding of the status ofinitiatives.

AwardsData section

Mizuho Financial Group received the highest award, the Minister of the Environment’s
Gold Award, in the Indirect Finance (General) Category of the Japan Ministry of theEnvironment’s 2nd ESG Finance Awards Japan. In addition, Mizuho Securities
received the Bronze Award in the Financial Services (Securities) Category.

Message from theGroup CFO

Board of Directors

The Executive Management Committee deliberates
and reports on important matters and progress of
initiatives in relation to sustainability.

Our strategies forcreating value

Oversight

Mizuho Financial Group

Corporate governanceFoundations for our
corporate value

Our holding company, Mizuho Financial Group, promotes
integrated sustainability initiatives throughout the group.

About Mizuho

Sustainability promotion structure

Message from theGroup CEO

Sustainability

ESG indices which include Mizuho (as of June 2021)

General index

Appendix

ESG indicesselected by the
GPIF

Themed indices

Integrated Report 2021

52

Our strategies for creating value

Sustainability: Strengthening our response to environmental andsocial risk in the value chain
Responsible financing and investment
At Mizuho, in light of the expectations and perspectives of our stakeholders and for the purpose of avoiding andreducing negative environmental and social impacts from financing and investment, we previously established an
Environmental and Social Management Policy for Financing and Investment Activity. In March 2021, we revised thepolicy and strengthened our initiatives to further address climate change, biodiversity, and human rights.
An overview of responsible financing and investment

Provide financing or support for raising capitalMizuho Financial Group (holding company)

Investment (asset management)
Mizuho Trust & BankingE stablished Environmental and Social Management
Policy for Financing and Investment Activity

Establish and implement policies on responsible

Mizuho Bank, Mizuho Trust & Banking, Mizuho
Securities, and Mizuho Americas
Implement Environmental and Social Management
Policy for Financing and Investment Activity

Financing large-scale development projects
Mizuho Bank
Adoption and application of the Equator Principles*

investment in our asset management businessEstablish and implement policies on Japan’s
Stewardship CodeAsset Management One
Establish and implement policies on ESG investment
Establish and implement policies on Japan’s*A financial industry benchmark for determining, assessing, and managing environmental andsocial risk related to financing of large-scale development projects.

Stewardship CodeOverview of our Environmental and Social Management Policy for Financing and Investment Activity
When determining whether to engage in transactions, we account for the degree to which the client has taken steps to avoid or
mitigate risk and other due diligence as appropriate, based on the characteristics of the services we are providing.

Prohibited

Regardless ofsectorAdditional due
diligence rojects with an adverse impact on wetlands designated as Wetlands of International Importance underP
the Ramsar Convention
Projects violating the Convention on International Trade in Endangered Species of Wild Fauna and Flora(Washington Convention)
Projects with an adverse impact on UNESCO World Heritage sites
Projects involving child labor or forced labor rojects with adverse impacts on indigenous peoples’ local communities
PProjects involving land expropriation that causes forced relocation of residents

Transition risk sectors

Specific industrial
sectors

Weapons

Coal-fired power
generation

Coal mining

Oil and gas

Large-scalehydropower

Large-scale
agriculture

Palm oil
Lumber andpulp

Implementation of Environmental and Social Management Policy for Financing and Investment Activity

Regularengagement
Governance
Education andtraining
Stakeholder
communication• We undertake engagement (constructive dialogue) with ourclients in transition risk sectors and specific industrial sectors
once or more per year.
• With consideration to changes in the external environment
and the results of implementation, our business execution andsupervisory lines* conduct regular reviews, revise our policies,and enhance implementation.

• Confirmed status of measures to e conduct training to enhance executive officers’ and•W
employees’ understanding of appropriate risk management.

• Held dialogue on addressing climate• We place a strong emphasis on engagement with diverse
stakeholders.

FY2020 engagement
Approx. 900 clients
address environmental and social riskschange risks with clients in transition
risk sectors* Business execution: Executive Management Committee, Risk Management Committee. Supervisory: Board of Directors, Risk Committee.

Target to reduce the outstanding credit balance for coal-fired power generation facilities based on our Environmental andSocial Management Policy for Financing and Investment Activity

Reduce the FY2019 amount by 50% by FY2030, and achieve
an outstanding credit balance of zero by FY2040
53

Mizuho Financial Group

RevisedTarget clients

Policies

New

Companies whose primary businesses are in coal-fired power generation, oil-fired power generation, gas-fired power generation,coal mining, and/or other oil and gas operations• We undertake engagement to ensure clients make progress on addressing transition risks.
• If a client does not make progress on addressing their transition risks even after a certain period of time, we carefully consider ourtransactions with the client.

• In these policies, we also take into account the role of the client in national energy policies aligned with the Paris Agreement.
An overview of our Policies on Specific Industrial Sectors

Targeted sectors

Policies

Underlines indicate revisions made in March 2021

About Mizuho

An overview of our Policies on Transition Risk Sectors

Message from theGroup CEO

Sustainability• We avoid providing financing or investment which will be used for the manufacture of weapons designed to kill orbiochemical weapons.

• We do not provide financing or investment which will be used for new construction of coal-fired power plants.
• However, when a proposed coal-fired power plant is essential to the relevant country’s stable energy supply and will
1

Coal-fired power
generation

contribute to reduction of greenhouse gas emissions by replacing an existing power plant, we may provide financing
or investment for the project, based on careful consideration.
• We will continue to support development of innovative, clean, and efficient next-generation technology that willcontribute to the energy transition, as well as other initiatives for the transition to a low-carbon society.

• Our decisions involve a thorough examination of the impacts on the environment, industrial safety and health, andThermal coalminingother areas.

• We do not provide financing or investment which will be used for new thermal coal mining projects.
• When an existing thermal coal mining project contributes to the stable energy supply of a country which hasannounced policies aligned with the Paris Agreement, we may provide financing or investment for the project, basedon careful consideration, only in these cases.

• Our decisions involve a thorough examination of the impacts on the environment and of the potential for conflicts
Oil and gas

with indigenous peoples or local communities.

• When providing financing or investment for oil or gas extraction projects in the Arctic Circle or oil sands, shale oil, or

Message from theGroup CFO

inflict structural damage during wars or armed conflicts.

• We avoid providing financing or investment to any manufacturer of cluster munitions, antipersonnel landmines, or

Our strategies forcreating value

Weapons

Large-scale hydropower• Our decisions involve a thorough examination of the impacts on the environment and of the potential for conflictsNew• We recommend the client perform an environmental and social impact assessment based on the Hydropower

Large-scale agriculture• Our decisions involve a thorough examination of the client’s measures to address environmental and social issues.
• We urge our clients to formulate No Deforestation, No Peat, and No Exploitation (NDPE) policies , and to respectNewwith indigenous peoples or local communities.
Sustainability Assessment Protocol.

2Free, Prior, and Informed Consent (FPIC) in relation to local communities.

Foundations for our
corporate value

shale gas projects, we conduct appropriate assessments of environmental and social risks.

Palm oil
Lumber and pulp

certifications and whether there are any potential conflicts involving indigenous peoples or local communities.

• For the palm oil sector, we require that all plantations be certified by the Roundtable on Sustainable Palm Oil (RSPO).
When the client does not have any plans to be certified by the RSPO, we ask that they take measures equivalent tothose required for the certification and periodically report the status of said measures.
• We urge our clients to formulate NDPE policies2, and to respect FPIC in relation to local communities.

1. This revision removes the “This excludes business to which Mizuho is already committed” qualifier. “New construction of coal-fired power
plants” includes expansion of existing facilities.
2. “NDPE policies”: Sustainable environmental and human rights policy such as for NDPE.

Data section• Our business decisions involve a thorough examination of whether the client/project has received international

Newly established Procurement Policy
We are enhancing our responsible procurement by clarifying our basic approach to procurement and ourrequirements for suppliers from the perspectives of consideration for the environment, respect for human rights,

Appendix

Responsible procurement

and compliance and information management.
For our primary suppliers
By providing this policy to our primary suppliers and urging them to pursue ESG initiatives in their business
operations, we are working together with our suppliers to contribute to the development of a sustainable society.
Integrated Report 2021

54

Our strategies for creating value

Sustainability: Strengthening support for sustainable business

Sustainability-centered business promotion
The trend toward sustainability is an irreversible structural change, and sustainability initiatives are a criticalbusiness challenge for our clients as well. We engage in proactive, constructive dialogue with our clients to develop
a deep understanding of their individual concerns and needs and support their efforts to develop and implement
sustainability strategies, especially in regard to climate change countermeasures and the transition to a low-carbon
society.
At Mizuho, we are strengthening our structure for promotion to further enhance our initiatives, while also developing
and providing both financial and non-financial solutions to meet our clients’ diversifying needs.
By supporting our clients’ continual growth, we are increasing medium- to long-term business opportunities andimproving corporate value.

Supporting our clients’ sustainability initiatives as a unified group
Facilitating sustainable business tailored to the particular characteristics and needs of our client segments

RetailMiddle-market firms and SMEs

Large corporations

Responding to customers’ varied
needs as a partner helping them
design their lives

Advising our clients on sustainability
initiatives as a strategic partner forbusiness structure transformation andgrowth strategy

Working with our clients to change
the industrial structure, beginningwith decarbonization, as a strategic
partner supporting our clients’ global
business development• Support for asset formation in

preparation for the future• Expand services that respond to asociety with a declining birthrate
and aging population• Convenient services in line withdiversifying lifestyles• Support for achieving the SDGs
• Support for business succession• Support for innovative startup

companies• Support for advancement ofenvironmental initiatives at suppliersof international companies• Support for adoption of renewableenergy with strong ties to the local
community• Support for sustainability strategy

and long-term business planning
through C-suite level engagement
and other methods• Finance solutions for implementing
sustainability strategies, including
decarbonization• Solutions for clients’ global needs,
matched to the unique features ofeach region

Developing and providing sustainability solutions group-wide to meet clients’ needs
Financial

Non-financial

Mizuho’s sustainable business network

Sustainable Business
Strategy Meeting
ESG Champions
At offices outside Japan as well,
employees responsible for promoting
sustainable business are developing a
global information network and sharing
knowledge and insights.

55

Mizuho Financial Group

Working-level staff members involvedin the group’s sustainable businessparticipate, sharing information related
to changes in the business environment
and the status of group initiatives
and holding discussions toward
strengthening our business.

Supportingclients’development andimplementationof sustainability
strategies withadvanced expertise• Formulate strategy by adding sustainability as a newdecision-making criterion• Support clients closely across upstream discussions,downstream consulting, and financial businessConventional decision-making criteria

Mizuho Bank
Industry
Research
Department

Core business

Non-core businessContributing

Enhance /maintain

Focus(Convert to corebusiness)

Noncontributing

Businesstransformation(Convert tocontributing)Streamline / saleSustainability

Mizuho Research& Technologies

Enhancing support for clients’ transitions toward a low-carbon society
The global issue of climate change demands an urgent response both from government and from individual
corporations. Mizuho is supporting the transitions of companies which promote decarbonization toward achieving a
low-carbon society.

ExampleArranged first transition loan in JapanIn March 2021, Mizuho extended a transition loan to Kawasaki Kisen for funds to build anext-generation environmentally friendly car carrier ship fueled by liquefied natural gas. Thistransition loan is the first loan in Japan to follow the Climate Transition Finance Handbook(International Capital Market Association) and the Green Loan Principles (Loan Market
Association).
(Photo: Kawasaki Kisen)

Comment from the arranger

The reason for proposing a transition loan
Transition loans are a type of financial product whichaims to support the initiatives of companies working to
reduce greenhouse gas emissions in line with long-term
strategies and toward achieving a low-carbon society.
Kawasaki Kisen has set rigorous decarbonization targets
which go beyond those of the International Maritime
Organization (IMO), and the company is taking bold action
to achieve these targets through innovation.
When looking for ways Mizuho could offer financial
support for these cutting-edge and ambitious
environmental initiatives as Kawasaki Kisen’s primarybanking institution, we explored the possibility of atransition loan and decided on making it our
proposal.

Comment from Kawasaki Kisen

The reason for selecting the transition loan
As a marine transportation company, we have incorporated conservationof marine resources and other forms of sustainability into our business
management from an ESG perspective, and we are pursuing them proactively.

About Mizuho

Example Support for sustainability-centered business portfolio review

Message from theGroup CFO

Mizuho Bank
Mizuho Trust & Banking
Corporate Strategy
Advisory Department

Our strategies forcreating value

Supporting
improvement incorporate value
through businessstrategy proposals
based on industry
insights

When we received Mizuho’s proposal for a transition loan, we saw it as anopportunity to gain broader trust and recognition from our stakeholders for ourcommitment to addressing climate change and environmental conservation,
and we settled on adopting it.

The value of engagement with financial institutions
Financial institutions are valuable business partners in raising the necessary
funds to further elevate our sustainability management.
In aiming to transition to a low-carbon society, we believe sharing ourcompany’s intended direction and gaining trust and support will
advance our sustainability strategy and improve our medium- tolong-term corporate value.

Integrated Report 2021

Appendix

An extensive trackrecord and highlevel expertise forpolicy support andprivate consulting
on the environment,
society, and digitaltechnologies

Foundations for our
corporate value

 upporting improvement in corporate value through both financial and non-financial solutions leveraging ourScombined strengths in industry insight and SDG/ESG consulting
We are supporting our clients’ development and implementation of sustainability strategies by applying our in-depth
insight into industry, the economy, and society and our high-level expertise in sustainability.

Data section

Support for clients’ medium- to long-term sustainability strategies

Message from theGroup CEO

Sustainability

56

Our strategies for creating value

Sustainable solutions
We strive to meet our clients’ diversifying needs to address the SDGs and ESG issues, and we have been proactively
developing and providing both financial and non-financial solutions.

Key sustainability
areas

Nonfinancial

Declining birthrate
and aging population,plus good health andlengthening lifespans

Industrydevelopment &innovation

Sustainable solutions

 omprehensive asset
C
consulting

ESG investment products
Trust products tailored to an aging societyOther asset management products for medium- to long-term
asset formation

Business succession consulting

Business succession solutions (e.g., financing) usiness matching /Bpitch event*SDG-related open innovation
platformCashless payments supportSoundeconomic
growth upport for real estateS
development and brokeragealigned with ESG factors
SDG/ESG consulting• Support for business structuretransformation• Support for addressing climate change

Environmental
considerations

Financial

SDG initiative support financeMizuho Positive Impact Finance ustainability-linked bonds/
Sloans
Transition financeMizuho Eco Finance

ESG investment
Finance for innovative
startup companies
Social bonds/loans
Infrastructure financeImpact investment/loans
Sustainability bonds/
loansGreen bonds/loans
Finance for renewableenergy* Pitch events promote open innovation by allowing startup companies to pitch their ideas and technologies to other parties.

Major results and initiatives
SDG/ESG consulting

Responding to the declining birthrate and aging population

We are supporting clients in resolving SDG- and
ESG-related challenges, with a focus onenvironmental and social aspects.

We are meeting our customers’ needs as a partner
helping them design their lives in an age of
longevity.

FY2020 Approx. 440 consultations*

Scope of climate change-related consulting(outline)
Decarbonization initiatives

AssessGreenhouse Gas Protocol

TCFD scenario
analysis

Set reduction targets

Transition risk
ESG investment products
Physical risk

ReduceRE100* Figures: New consultations by Mizuho Research & Technologies
in fiscal 2020.

Mizuho Financial Group ersonalized trusts tailored to the needs of older customers
PTrusts providing support for customers in the event they
develop dementia, fostering a society in which people affectedby dementia can maintain their lifestyles
Letter to the Future, a private data trust supporting
management and inheritance of valuable information

Disclose

SBTs

57

Major products

ExampleWe provide ESG investment products in our publicly
offered investment trust lineup.
In July 2020, we built on the investment philosophy
and process for our existing Future World fund to
newly establish the Future World (ESG) fund, which
integrates ESG evaluation more proactively.

Sustainable finance and environmental finance initiatives(of which, ¥12 trillion inenvironmental finance)

Total:¥7.1 trillion

16％

67%

Environmental
finance(of which, ¥2.6 trillion in environmental finance)

21％

Environmental financeOur definition of sustainable finance and environmental finance

Breakdown of FY2019 – FY2020 results• Environmental considerations• Sound economic growth• Industry development & innovation
Applicable finance • Finance for clients where the intended use

Type of finance
Project finance for renewable energy (loans)
Green bonds (underwriting)Mizuho Eco Finance (loans)
Other environmental finance (loans / investment)
Environmental finance (total)
Project finance for infrastructure (loans)
Social/sustainability bonds (underwriting)
Net increase in ESG/SDG investment products undermanagement (asset management)
Other sustainable finance (investment / loans)
Sustainable finance (total)

Primary key
sustainability
areas referencedof funds is environmental and/or social
projects• Financing to support and facilitate ESG/
SDG-related areas, including financing
requiring clients to meet certain related
conditions, and consideration andassessment of clients’ responses to ESG/
SDG-related areas

areas

Applicablebusiness areas• Loans, underwriting, investments, asset¥ trillion
0.7
0.9
0.6
0.5
2.6
0.6
0.9
1.8
1.3
7.1

management

Sustainable finance league tables1

Sustainablefinance (loans)#2 worldwide2

Publicly offered
SDG bonds#1 in Japan3

SDG initiative support finance

We are supporting the SDG initiatives of middlemarket firms and SMEs.
Ascertain the status

2 of clients’ initiatives

We are supporting our clients’ sustainability strategies
by providing sustainability-linked bonds and loans
which link preferential terms to the borrower’s
achievement of sustainability performance targets.
Mizuho arranged Japan’s first sustainability-linked
bond (SLB), and we are also issuing sustainabilitylinked loans (SLL) both inside and outside Japan.
 rranged SLL focused on marine• A
resource conservation, in addition togreenhouse gas reductions• Included enhancement of traceability
for procurement of marine resources
in KPIsfor SDG initiatives

Publicize initiative
targets

1. April 2020 to March 2021 league table results
2. Source: Refinitiv
3. Source: Capital Eye

Sustainability-linked bonds/loans

Support setting

3 targets and actions

Simple assessment of SDG
response(Client)

Discuss importance

4 support achievement

1 of SDG initiatives

Provide financing,

Message from theGroup CFO

trillionJapan

Our strategies forcreating value¥25

Environmental
financeFoundations for our
corporate value

Total:

33%

Data section

FY2019–FY2030OutsideJapan

FY2019 – FY2020 resultsof targets

Finance for renewable energy

To facilitate the adoption of renewable energy,
we proactively finance a wide range of projects,
from those on a large scale to those rooted in local
communities. In fiscal 2019 to 2020, we arranged
approximately ¥700 billion in project finance andapproximately ¥160 billion in asset based lending.

Integrated Report 2021

AppendixLong-term target

About Mizuho

In order to direct capital toward environmental conservation and achievement of the SDGs, we have set long-termsustainable finance and environmental finance targets, and we are proactively providing financing. Our initiatives
are broad in scope, ranging from financing environmental projects, most prominently renewable energy, and social
projects to offering ESG investment products.

Message from theGroup CEO

Sustainability

58

Our strategies for creating value

Sustainability: Addressing climate change

At Mizuho, we have supported the intent and aims of the Task Force on Climate-related Financial Disclosures (TCFD)
Recommendations since 2017. Based on our awareness that climate change is one of the most crucial global issues
having the potential to impact the stability of financial markets, we have positioned addressing climate change as a
key part of our corporate strategy and have bolstered various initiatives as a result of numerous discussions at bodies
including the Executive Management Committee, Risk Committee, and the Board of Directors. Our main progress infiscal 2020 is as below.
Main progress on TCFD Recommendations in fiscal 2020

Governance

Strategy• Our progress on responding to the TCFD Recommendations and our challenges are reported to the Risk Committee and theBoard of Directors following deliberation at the Executive Management Committee.
• Revised our Environmental Policy and clarified our transformation to a portfolio aligned with the targets in the Paris Agreement.
• Utilized scenario analysis results and expanded the scope of analysis.
• Utilized engagement as a starting point to proactively develop and provide both financial and non-financial solutions.
• Strengthened structure for promoting sustainable business.

Risk
Management• Monitored as an emerging risk. In fiscal 2021, designated as a “top risk” and enhanced our monitoring.
• Updated our Environmental and Social Management Policy for Financing and Investment Activity.
• Enhanced measures to address transition risk (expanded engagement, improved risk control for carbon-related sectors, etc.).

Metrics andTargets• Set new medium- to long-term targets for reducing Mizuho’s greenhouse gas emissions.
• Revised target to reduce the outstanding credit balance for coal-fired power generation facilities.
• Calculated greenhouse gas emissions (Scope 3) associated with project finance for power generation projects.

Governance

Revised our Environmental Policy and clarified our transformation to a portfolio alignedwith the targets in the Paris Agreement.

In April 2020, we established our Environmental Policy in order to clarify our stance on climate change as well as ourenvironmental awareness and specific actions that we will take on environmental initiatives, including those targetingclimate change, as we work toward transitioning to a low-carbon society. Our group companies also adopted similar
policies, allowing us to pursue our initiatives in an integrated manner.
In April 2021, we revised our Environmental Policy, clarifying our contribution to achieving a low-carbon society (netzero greenhouse gas emissions) by 2050, our support for the objective of the Paris Agreement, and our transformation
to a portfolio aligned with the targets in the Paris Agreement.

Underlined portions indicate April 2021 revisions

Efforts to address climate change
We recognize climate change as one of the most crucial global issues with the potential to impact the stability of financial
markets, representing a threat to the environment, society, people’s lifestyles and businesses.
At the same time, we believe there are new business opportunities arising from the need to transition to a low-carbon
society, such as the field of renewable energy and other businesses and innovations which contribute to mitigating andadapting to the impact of climate change.
Mizuho supports the Paris Agreement’s objective to “strengthen the global response to the threat of climate change”.
In light of this, we have included responding to climate change as a key pillar of our business strategy and will take thefollowing actions in order to proactively fulfill our role as a financial services group in the effort to achieve a low-carbon
society (achieve net-zero greenhouse gas emissions) and to develop a climate change resilient society by 2050.

• We are directing finance flows towards achievement of the Paris Agreement targets to limit global average temperature rise, and we areundertaking phased transformation to a finance portfolio aligned with said targets.

• We will engage in proactive, constructive dialogue in response to our clients’ individual concerns and needs, and in support of theirefforts to introduce climate change countermeasures and transition to a low-carbon society in both the medium and long term.

• We will proactively develop and offer financial products and services designed to support clients’ efforts to introduce climate change
countermeasures and transition to a low-carbon society.

• We understand the importance of climate-related financial disclosures, and we utilize the framework under the Recommendations of
the TCFD in order to leverage growth opportunities and strengthen risk management as well as disclose information in a transparent
manner regarding our progress.

Strategy59

Mizuho Financial GroupStrengthened structure for promoting sustainable business

P55

In-depth
engagementwith clients

Examples ofengagement
topicsMetrics andTargets

Approx. 530 clients

Approx. 900 clients

Clients in sectors subject to theEnvironmental and Social Management
Policy for Financing and Investment Activity(oil and gas, coal-fired power generation,coal mining, palm oil, lumber, and pulp)
Approx. 30 clients

Approx. 70 clients• Status of measures to address criticalenvironmental and social risks in eachsector• Risks and opportunities related to ESG
issues and climate change• Approaches to and response plans
for transition risks (business structuretransformation strategies and similar)• CO2 emissions and medium- to long-term
reduction plans• Capital raising plans related to renewableenergy business, technologicaldevelopment for CO2 emission reductions,
etc.

•

High

Projectfinance

Carbon-related sectors
Coal-fired
PowerElectric
power generation Oil, gas, other(utilities)
Power transmission
Resources(energy)

Coal

ThermalMetallurgical
Oil and gas
Key:High-risk area

Exposure in carbon-related sectors is ¥12.8 trillion,
representing 5.5% of overall exposure, and within thisamount exposure in high-risk areas composes ¥1.8
trillion (both figures are as of March 2021).
Response policy for high-risk areas
We are more thoroughly engaging with clients to support
them in formulating effective strategies for their transition
risks, in disclosing their progress, and in embarking on
business structure transformation towards a lower risk
sector at an early stage. In undertaking such engagementwith our clients, if a client does not make progress on
addressing their transition risks even after a certain
period of time, we carefully consider our transactions
with the client. In this way, we are enhancing our risk
control and reducing our exposure in high-risk areas overthe medium to long term.

New indicators and targets, Scope 3 emission measures

Climate change-related indicators and targets
Set new target to reduce the Mizuho group’s1
worldwide Scope 1 and Scope 2 greenhouse gas
emissions2• Reduce the FY2019 amount by 35% by FY2030• Aim to become carbon neutral by FY2050
Revised target to reduce the outstanding credit
balance for coal-fired power generation facilities• Reduce the FY2019 amount by 50% by FY2030, andachieve an outstanding credit balance of zero by
FY2040•Transition risk response

Message from theGroup CFO

Target clients

FY2020

Corporate credit
Low

Measurement and management of Scope 3 greenhousegas emissions3 from financing and investment• As a first step toward Scope 3 measurement, estimated greenhouse••gas emission intensity (basic units) in relation to project finance forpower generation projects, based on the Financial Sector ScienceBased Targets Guidance and the Partnership for Carbon Accounting
Financials Global GHG Accounting and Reporting Standard for the
Financial Industry
Plan to set medium- to long-term targets for Scope 3 emissions by
the end of fiscal 2022 and gradually expand scope of measurement
Became the first Japanese financial institution to join the Partnershipfor Carbon Accounting Financials, a global initiative to develop an
accounting standard for indirect greenhouse gas emissions fromfinancial institutions’ financing and investment (July 2021)

Data section

Engagement withclients

FY2019Mapping of risk assessment

Mapping of risk assessment

Our strategies forcreating value

 ngagement with clients from a perspective of responsibleE
financing and Investment

Risk assessment in carbon-related sectors
At Mizuho, in line with the TCFD Recommendations, wehave been measuring and disclosing the percentage ofour credit exposure in carbon-related sectors. We haveassessed risk along two axes—our clients’ sectors andour clients’ measures to address transition risk—in order
to identify high-risk areas (figure below; to be managed
as a monitoring indicator going forward).

Foundations for our
corporate value

Expanded engagement
In light of our fiscal 2019 scenario analysis results andother factors, since fiscal 2020 we have been further
strengthening our constructive dialogue (engagement)with our clients concerning their efforts to address
climate change. Providing solutions based on a deep
understanding of our clients’ challenges and needs
allows us to capture business opportunities andstrengthen risk management.

About Mizuho

Enhanced response to transition risks

Appendix

Risk
Management

Message from theGroup CEO

Sustainability

1. Eight group companies (Mizuho Financial Group, Mizuho Bank, Mizuho Trust & Banking, Mizuho Securities, Mizuho Research & Technologies,
Asset Management One, Mizuho Private Wealth Management, and Mizuho Americas).
2. Scope 1: Direct emissions of greenhouse gases from company-owned or –controlled sources (such as from burning of fuel). Scope 2: Indirectemissions of greenhouse gases from the use of energy of similar resources provided by other parties.
3. Scope 3: Greenhouse gas emissions from other parties involved in financial institutions’ activities.
Integrated Report 2021

60

Our strategies for creating value

Status of Mizuho’s response to TCFD Recommendations
The TCFD Recommendations call for disclosures on governance, strategy, risk management, and metrics and targets
relevant to climate change-related risks and opportunities. The current status of our response to the TCFD
Recommendations is as follows.

Disclose the organization’s governance around climate-related risks andopportunities.

Governance• The Board of Directors approved and established the Environmental Policy, which clarifies our stance on climate change as

we work toward transitioning to a low-carbon society. We revised our Environmental Policy in April 2021 and clarified ourcontribution to achieving a low-carbon society (net-zero greenhouse gas emissions) by 2050, our support for the objectiveof the Paris Agreement, and our phased transformation to a portfolio aligned with the targets in the Paris Agreement.
• Based on our Environmental Policy, we assess our progress on environmental initiatives, including the status of our
response to the TCFD Recommendations, and other relevant information under the oversight of the Board of Directors, withconsideration of the deliberations of executive management and the advice of the Risk Committee.
• We have identified key sustainability areas, including responses to climate change, and incorporated them into our 5-YearBusiness Plan, based on deliberation by our Executive Management Committee and Board of Directors. These enable us toadvance our sustainability initiatives as an integral part of our strategy.

Disclose the actual and potential impacts of climate-related risks and opportunities
on the organization’s businesses, strategy, and financial planning where suchinformation is material.

Strategy• We have identified the following climate-related risks and opportunities and impacts on business activities. We have further
strengthened our structure for promoting sustainable business group-wide, with engagement as our starting point, tosupport the transition to a low-carbon society. We conduct appropriate risk management based on international concerns,
trends, and other factors.

Opportunities for Mizuho— Utilizing engagement with clients as a starting point, expand business opportunities to support the transition to a lowcarbon society and climate change responses.
• Provide sustainable finance, transition finance, and environmental finance.
• Provide financial and non-financial solutions that meet the diverse needs of clients.
— Enhance our reputation in society through strengthened climate change response and proactive disclosure.
Risks for Mizuho— Our transition risks include credit risk related to financing and investment clients who are impacted by more stringent
carbon taxes, fuel efficiency regulations, or other policies or by delays in shifting to new technologies. Our transition risks
also include operational risk related to reputational damage from financing fossil fuel projects.
— Our physical risks include both acute risks, consisting of operational risk related to the possibility of extreme weather
causing damage to our assets and similar risk of damage to customer assets, and chronic risks, consisting of credit risk
arising from deterioration in the macro economy due to increased instances of infectious disease, heatstroke, and similar.
Scenario analysis— Transition risk
ScenarioInternational Energy Agency (IEA)’s World Energy Outlook 2020 Sustainable Development Scenario (SDS)1 / Stated Policies Scenario (STEPS)2

Analysis method

We analyzed changes in Mizuho’s credit costs by formulating an outlook for the impact on clients’ financial results, based on changes to the parameter under
the scenario. We employ two scenarios: a static scenario which assumes that no attempt is made to transform the present business structure, and a dynamic
scenario under which the business structure is transformed. We determine the scenario to apply based on the client’s progress in responding to transition risk.

Targeted sectors

Electric utilities and oil, gas & coal sectors (worldwide)
Automobile sector (worldwide)

Period2050 (while the IEA scenarios are until 2040, the period for this analysis is until 2050)

Credit costs

The increase in credit costs for the targeted sectors combined is estimated to be around ¥620 billion through 2050 (with March 31, 2021 as the base point).

Implications andnecessary actions

We confirmed the importance of advancing business structure transformation over the medium to long term in order to transition to a low-carbon society.
Further strengthening engagement with clients and responding with a deep understanding of their challenges and needs will allow us to capture business
opportunities and strengthen risk management.

— Physical risk
Types of risk

Acute risks

Chronic risks

ScenarioIntergovernmental Panel on Climate Change (IPCC) Representative Concentration Pathway (RCP) 8.5 scenario (4°C scenario) / RCP 2.6 scenario (2°C
scenario)

Analysis method

We calculated the rates at which typhoons and other storms cause wind- andwater-related building loss or damage. We then analyzed the potential direct(collateral value) and indirect (business stagnation) impacts on credit costs
from the loss or damage of mortgaged real estate (buildings) in Japan.

We analyzed the impacts on credit costs from changes in the macroeconomic
environment brought about by increases in infectious disease and heatstroke
as well as by heatstroke prevention practices causing decreases in working
hours among outdoor laborers.

Target of analysis

Japan only, for impact of business stagnation this is based on the locationof the client’s headquarters (this analysis targeted middle-market firms and
SMEs)

Japan only

Credit costs

Impact on mortgage lending value: limited
Impact of business stagnation: Up to ¥52 billion as of 2050

Up to ¥4 billion through 2100

Implications

The analysis confirmed that there will not be a significant impact compared to our income during the period.

1. Sustainable Development Scenario: A scenario under which a surge in clean energy policies and investment puts the energy system on track to achievesustainable energy objectives in full, including the Paris Agreement, energy access and air quality goals.
2. Stated Policies Scenario (STEPS): Scenarios which reflect the impact of existing policy frameworks and today’s announced policy intentions.
(Underlined portions indicate initiatives that we have enhanced since our previous Integrated Report was released in September 2020.)

61

Mizuho Financial GroupDisclose the metrics and targets used to assess and manage relevant climaterelated risks and opportunities where such information is material.

Metrics and Targets

Targets— Sustainable finance & Environmental finance targets:
FY2019 – FY2030 total: ¥25 trillion (of which the target for environmental finance is ¥12 trillion)— Target to reduce the outstanding credit balance for coal-fired power generation facilities based on our Environmental
and Social Management Policy for Financing and Investment Activity:
Reduce the FY2019 amount by 50% by FY2030, and achieve an outstanding credit balance of zero by FY2040— Target to reduce our own environmental footprint:
Reduce the FY2019 amount of worldwide Scope 1 and Scope 2 greenhouse gas emissions from the eight groupcompanies by 35% by FY2030, and aim to become carbon neutral by FY2050
Monitoring indicators— Scope 1 and Scope 2: CO2 emissions and energy usage— Scope 3: Environmental footprint from business trip-related CO2 emissions and new large-scale power generation
projects (amount of contribution to CO2 emissions)— Environmental conservation associated with new large-scale power generation projects (amount of contribution toCO2 emission reductions)— Exposure to high-risk areas within transition risk sectors• As a first step toward Scope 3 measurement, we estimated greenhouse gas emission intensity (basic units) in relation
to project finance for power generation projects, based on the Financial Sector Science-Based Targets Guidance and
the Partnership for Carbon Accounting Financials Global GHG Accounting and Reporting Standard for the Financial
Industry. Going forward, we will set medium- to long-term targets for Scope 3 emissions by the end of fiscal 2022 andpursue initiatives to gradually expand the range of sectors subject to measurement and other factors.

About Mizuho
Appendix(Underlined portions indicate initiatives that we have enhanced since our previous Integrated Report released in September 2020.)

Message from theGroup CFO

Enhanced response to transition risks— Based on the results of our FY2019 scenario analysis, we strengthened engagement with clients (undertook
engagement with approximately 900 clients from the perspective of responsible financing and investment and,among these, in-depth engagement with approximately 70 large credit and similar clients).
— Strengthened risk management by improving risk control in carbon-related sectors and revising our Environmental
and Social Management Policy for Financing and Investment Activity (enhanced it to further address climate change,
biodiversity, and human rights).

Our strategies forcreating value

Management of top risks— Under our management of “top risks”, which are risks recognized by management as having major potential impact
on the group, we position the rapid advancement of social change occurring due to climate change as a “top risk”.
We determine related indicators which require monitoring as well as risk control measures. Reports on the status of
our response are made to the Board of Directors and other bodies.

Foundations for our
corporate value

Identification of climate change risks and integration with comprehensive risk management— By identifying physical and transition risks resulting from climate change and integrating them into our overallrisk management framework for credit, operational, and other types of risk, we are ensuring comprehensive risk
management.

Data section

Disclose how the organization identifies, assesses, and manages climate-relatedrisks.

Risk Management

Message from theGroup CEO

Sustainability

Please see our TCFD Report for more details on our initiatives responding to the
TCFD Recommendations.
https://www.mizuhogroup.com/binaries/content/assets/pdf/mizuhoglobal/sustainability/
overview/report/tcfd_report_2021.pdf

Integrated Report 2021

62

Our strategies for creating value

Digitalization
Creating a next-generation financial model by bringing together digitaltechnologies and social contribution
Mizuho is proactively engaging with the process of using digital technologies to create new forms of social living,such as those imagined in Society 5.0* and smart city concepts. Through our engagement, we will create new ways ofinteracting with finance that will positively contribute to solving social issues.
*A major policy promoted by the Japanese Cabinet Office’s Council for Science, Technology and Innovation for creating a “Super Smart Society”(Society 5.0) through advances in science and technology.

Digitalization initiatives
How digital technologies will be incorporated into
finance to establish sustainable business models is oneof the most important areas of focus. With changes inthe business environment during and after the COVID-19
pandemic, we believe that digitalization, such as the shift
toward remote and contactless services, will continue toaccelerate at an increasing pace.
Taking such changes in the business environment
as opportunities for creating innovation, we arecollaborating openly with other companies to meet the
emerging needs of our customers (create new business)and to transform our own business operations (enhanceexisting services and improve productivity).

Strengths of partners

Customer base andinformation infrastructure

Innovation and technology

Trustworthiness and reliability

Customer base andinformation infrastructure

Financial expertise andskill

Insight(e.g. security, information management)

Agility

Trial and error

Act with speed andflexibility

Allow ten attempts to
produce even one success

Open innovation

Communication andcollaboration

Work with partners

Timely information sharing
and coordination

Development framework for digital domains

Create new business

The digital innovation departments of Mizuho Financial
Group and Mizuho Bank, as well as Mizuho Research &Technologies, which is a core non-financial subsidiary,
are working together to create new business. Throughsuch efforts, we are combining our capacity to create
new financial business and leverage the scale of ourbusiness, backed by our customer base, with ourcapacity to create new non-financial business andadopt IT systems to promote fast-paced innovation
and business development based on original ideas forsolutions that span financial and non-financial areas.

We are working to provide services that meet
expectations for remote and contactless digital services
in financial areas, and toward solving social issues in
non-financial areas such as the healthcare field and incommunity relations.

We openly engage with startup companies and otherorganizations through Blue Lab*, carrying out open
innovation through ideas and viewpoints that flow freely
without being limited to finance.
*A company aiming to create new business, established as a joint
venture with partners including Silicon Valley venture capital firm WiL,
companies from other industries, and regional financial institutions.

63

Mizuho’s strengths

Mizuho Financial Group

Also, in order to realize such services, we are advancing
the utilization of digital technologies such as blockchain
technology and AI.*
*AI Powerhouse was established as Mizuho’s AI technology researchorganization inside Mizuho Research & Technologies.

J-Coin Pay smartphone payments service (finance/remote/contactless)	Digital local gift cards that contribute to the regional
revitalization measures of local governments and otherorganizations (finance/remote/contactless)	J.Score service leveraging AI for individuals’ credit scores(finance/AI)
	Service for issuing digital corporate bonds targeting
individual investors using blockchain technology (finance/
blockchain)	Unified management of capital flows, trade flows, andlogistics (finance/blockchain)	Healstep, a consulting service for Japanese health insurance
associations leveraging AI (healthcare/AI)
	Smiile, an exchange service for local communities tofacilitate the mutual support of neighborhood residents(community relations)	Cybersecurity
Cyberattacks are on the rise with the advancement of digitalization throughout society
As digitalization continues to advance, communicationand economic activities that take place over the Internet
have become a part of daily life in many regions aroundthe world. With the Internet becoming a public space
where large volumes of private information circulate
and accumulate, the number of cyberattacks that target
such information is also growing. Means of carryingout cyberattacks are increasingly being offered asservices and are becoming more specialized, allowing
cyberattacks to be executed by collaborating parties
regardless of whether each party possesses all thenecessary skills for an attack. Such developments lay
behind the increase in cyberattacks.

About Mizuho

Message from theGroup CEO

Digitalization

Mizuho’s cybersecurity initiatives
At Mizuho as well, we are advancing financial services
and data business that leverage digital technologies.
In order to provide safe and reliable services to ourcustomers, it is important that we address the risks that
accompany the use of digital technologies, particularly
with regard to cybersecurity.
As we stated in the Declaration of Cybersecurity
Management that we released in June 2018, we consider
cyberattacks to be one of the top risks for our business,and have developed our management policies anddeclared our intentions to address cybersecurity as amanagement priority. Specifically, with Mizuho-CIRT1
taking the lead, we have assigned high-levelprofessionals and are drawing on intelligence andcutting-edge technology developed in collaboration withexternal specialized organizations, while alsoestablishing a monitoring framework via integrated
SOC2. We are also focusing on personnel development in
the medium to long term together with our initiatives tostrengthen our resilience frameworks, including theanalysis of computer viruses and the development ofdefense-in-depth measures. In addition, to strengthen
our global cybersecurity frameworks across the group,
we have assigned a Group CISO3 under the direction of
executive management.

Mizuho-CIRT

Collaborate

External
specializedorganizations

Message from theGroup CFO

Cybersecurity at Mizuho

Integrated SOC
Forensics

Targeted attacks

Protect

Website alteration
DDoS attack
Hacking
Illegal money transfer

Assets/services
to be protected

Information assets

Foundations for our
corporate value

Attacker

Defense-in-depth measures

Monitor/respond

Customer information

Declaration of Cybersecurity Management
https://www.mizuhogroup.com/who-we-are/strategy/it/cybersecurity

Data section

1. Cyber Incident Response Team
2. Security Operation Center
3. Chief Information Security Officer

Assessing cyber risks at Mizuho

Identify

Respond

0 Corresponding

controls to threats

Assessment
results

Attack method
assessment

Risk scenario
assessment

4

Level
of security measuresfor each attack method

Prevent

3

Residual riskof each scenario

Attacker actions

Phase
assessment

1 Threats2

Sufficiency
of countermeasuresfor each phase

Sort scenarios
chronologically1

Threatassessment

2 Phases

ers

ecu

rity

Series of actions
3 Riskscenarios by attackers

0Countermeasures

Sort attack methods
in four categories

Assessment pointsrisk

4 Attack
methods

Flow of cyber risk assessments

Sufficiency
of countermeasuresfor each threat

Approach to cyberattack risks

Cyb

One of our initiatives
for cybersecurity at
Mizuho is cyber risk
assessment, in which
we assess the maturity
level of organizational
management systems andthe IT system defensesof all companies in the
Mizuho group on a regularbasis for cyberattack risks.
Actions are then takenin accordance with theresults of the assessment.

Integrated Report 2021

Appendix

Gather information/implement
countermeasures/investigate

Our strategies forcreating value

Rescue/support

64

Our strategies for creating value

Employee engagement
Our HR objectives
As society and our customers’ needs undergo major changes, in order to forge new partnerships with our customers
we will need to enhance the expertise and skills of our personnel. Additionally, in Japan, workers’ perspectives are
shifting away from the idea of belonging to a company with the assumption of lifetime employment, to the idea of
belonging to a profession, which assumes a lifelong active role in one’s field, and the focus is on increasing one’s
individual value.
Our HR objectives also take these changes in customer needs and employee perspectives into consideration, and we
aim to contribute to the sustainable growth of our corporate value by focusing thoroughly on maximizing employees’
universally recognizable value and ensuring each employee can be fully engaged.
Overview
Changes in external environment
Declining birthrate
and aging population

Digitalization

Changes in the attitudes and perspectives of workers

Globalization

Emphasize universally
recognizable expertise

Changes in customer needs(Must provide value beyond the realm of finance alone)

Belong to a company

Belong to a profession

Mandatory retirement

Age of longevity / Lifelong
active role in one’s field

Focus on successwithin the company

Focus on growth

New HR strategy

Shift from a model where the source of competition is limited to within the company to a model that enhances employees’
universally recognizable value and maximizes ambition by comprehensively supporting their career development
Career development revolving around expertise
Career development support
Provide a range of work opportunities(career field management)
Provide opportunities for learning and taking on challenges

Support growth through personnel evaluations

Revision of compensation system

Focus on expertise

Emphasis on job duties and performance

Dialogue-based feedback

Ensure flexible compensation

A work environment that enhances employee engagement

Promote the full engagement of each employee and aim for sustainable growth of our corporate value– Create a win-win situation enabling employee growth and company growth –Career development revolving around expertise
Career development support
Career field management
Through dialogue between the company and the employee,
develop careers that span across business fields with afocus on fields where they can strengthen and demonstrate
their expertise
Business Business Business Business Business BusinessfieldsfieldsfieldsfieldsfieldsfieldsFields where employees canstrengthen and demonstrate their expertise(Career fields)(Personnel development that spans across business fields)

Fields where employees canstrengthen and demonstrate their expertise(Career fields)(Personnel development that spans across business fields)

Careers that span across group entities and businesses

65

Mizuho Financial GroupThrough HR management with visualized criteria (for personnel transfers, personnel
evaluations, training, etc.) and active dialogue, we will ascertain each employee’s fieldof proficiency at an early stage and help them reach their full potential.
Specifically, each employee will define their career path by developing expertisethrough experience in their respective business fields, and through dialogue between
the company and the employee, we will support self-directed career development with afocus on work experience in career fields where each individual can strengthen anddemonstrate their expertise.
Additionally, by enabling career development that spans multiple fields, we will develop
personnel who are highly specialized but also have an understanding of the big picture.

At Mizuho, in addition to providing employees with opportunities tolearn and take on challenges through roles that have global reach, weare also working proactively to provide and create an environment forconnecting to such opportunities outside the company.

As for external opportunities, the concurrent assignment program via
which employees work some days at Mizuho and other days at anothercompany, and the part-time work program for employees to operate
their own businesses outside of work hours, have enabled around 300
employees to begin new initiatives in the year and a half since thelaunch of these programs. These, along with other initiatives, aresteadily heightening the awareness of each employee to theimportance of proactively learning and taking on challenges.

955
820
522

FY2018FY2019FY2020

Example of concurrent assignment
outside Mizuho
External company
3 days/wk 2 days/wk

Gain diverse perspectives and external insightFoundations for our
corporate value

Furthermore, we have also introduced “second career” job postings
and a flexible retirement age system as opportunities for middle-age
and older employees to take on new challenges for the next step intheir careers.

Supporting growth through personnel evaluations

Also, we will increase opportunities for communication between
managers and employees in the course of the evaluation process, andin addition to providing thorough feedback on issues hindering growth
and the employee’s actions in a 1-on-1 setting, we will focus on
improving managers’ skills as evaluators.

Focus on expertise

Beginningof year

Dialogue cycle

As business grows increasingly complex and specialized, and as
customer needs become more diverse, personnel evaluations mustalso be conducted with a focus on the expertise required for each typeof business, and using this as criteria for personnel development willcontribute to the enhancement of employees’ universally recognizablevalue.

Endof yearSetting goals

Message from theGroup CFO

For our internal job postings we are strengthening support frameworks
to dispel any doubts that potential applicants may have, for example
by holding discussion meetings where information is exchanged
beforehand, and implementing programs that provide support after
taking up the new post. As a result of these initiatives, the number ofinternal job applicants has increased significantly over the last two
years. Also, the number of applicants for the concurrent assignment
program, which provides opportunities for employees to be involvedin other work they are interested in while maintaining their primary
duties, increased 30% year-on-year to over 160 applicants.

About Mizuho

No. of applicants for internal job postings(no. of people)

Our strategies forcreating value

In order for each employee to maximize their universally recognizablevalue, it is essential to continually learn and take on challenges
proactively, no matter one’s age or position.

Reflection
Feedback
Dialoguecycle

Dialoguecycle

Dialoguecycle

Dialoguecycle

Enhanceuniversally
recognizable
value

…

Dialogue
cycle

Data section

Providing opportunities for learning and taking onchallenges

Message from theGroup CEO

Employee engagement

Go through the cycle continuously throughout the year (1-on-1)

Appendix

Revising the compensation system
As we promote career development that revolves around expertise, wewill draw out employees’ motivation and ambition and encourage
proactivity by building a new compensation framework that focuses onjob duties and performance based on each employee’s acquisition anddemonstration of expertise, rather than seniority or years ofexperience.
Additionally, to encourage employees’ ambitions, we will strive forflexible compensation based on fair evaluations.
Integrated Report 2021

66

Our strategies for creating value

A work environment that enhances employee engagement
Achieving a more flexible working styleMizuho received 5 stars on the Nikkei
Smart Work Survey

As we take account of new discoveries resulting from the COVID-19 pandemic, look ahead to a
post-COVID-19 society, and give consideration to increasing employee interest, we are reexamining what it means to “work”, and by adopting working styles and management
frameworks that are based on the assumption of employees flexibly choosing where and when
they work, we are promoting increased productivity for each employee.
In fiscal 2020, in addition to expanding remote working arrangements and the utilization ofstaggered working hours and flextime, we newly established “3- or 4-day workweek” and “6hour workday” arrangements, which can be used to balance self-improvement activities,
childcare, or caregiving responsibilities with work.
We are also aiming to create a work environment that encourages healthy and efficient working
styles by focusing on eliminating overwork. Going forward we will continue to promote tailoredlabor management practices in partnership with industrial physicians.

Mizuho received Platinum Kurumin
certification in recognition of oursignificant efforts to implement andmaintain systems that assist workers
in balancing work and childcare.

Diversity and inclusion
We aim to proactively incorporate the perspectives and ideas of our diverse workforce into oureveryday work, strategic planning, and decision-making in order to create new value. We arecommitted to valuing the voices of diverse groups including women, non-Japanese nationals,
individuals with disabilities, and individuals who identify as LGBT.
By integrating diversity and inclusion (D&I) into every aspect of our HR strategy, we are
increasing our efforts to fully engage our diverse workforce, promote diverse and flexible
working styles, and transform the mindsets and behaviors of all employees and executive
officers. (Refer to page 26 for D&I related KPI.)

A global campaign aimed atincreasing the percentage of women
involved in important decision-making
bodies within corporations

By offering a systematic strategic development program for management-level personnel as ameasure supporting career development for women, we are proactively supporting thedevelopment of their skills, and in June 2021 we joined the 30% Club Japan in an effort to further
accelerate these initiatives. Also, in order to ensure that women can continue to develop theircareers throughout different life events, we offer programs to support working parents andcaregivers, remote work options, and other support systems that enable diverse and flexible
work arrangements. Additionally, we are working to change mindsets throughout theorganization via a range of initiatives, including encouraging 100% of applicable men to takechildcare leave.
Strategic development programs for female employees

Mizuho received the top rating of“Gold” on the PRIDE Index which
evaluates LGBT-related initiatives.

General manager
equivalent

Cultivate an executive
management perspective in future
executive leader candidates

Strategic assignments
Coaching / Mentoring

Managerequivalent

Learn skills and mindsets usefulfor career development andfoster an awareness of careeradvancement

Leadership skills training
Enhancing assignments

Supervisor
equivalent(under Supervisor
equivalent)

While cultivating their career
perspective, develop eachindividual’s strengths

Career design programH R management tailored to theindividual (including transforming
management mindsets)

Company-led initiatives

M-WIN
MIW-NetNetworks for women
working at Mizuho
Network expansion
Access to role models

Employee-led initiatives

Promoting employee resource groups (ERGs)
Aiming to contribute to the creation of a corporate culture that facilitates new business ideas anddiscoveries, Mizuho supports ERGs as employee-led platforms for mutual learning. In ERGs,
employees from different areas of the organization of varying ages and national backgrounds
come together for a variety of self-improvement opportunities to contribute to their own personal
growth and that of the organization.
ERG event (Online talk on theengagement of employees withdisabilities)

67

Mizuho Financial GroupMessage from theGroup CEO

Employee engagement

Fiscal 2020 saw the creation of two new ERGs in Japan, focused respectively on data utilizationand supporting women’s career advancement. There is growing momentum for theestablishment of new ERGs, and the number of employees involved in these groups has grown
to around 5,000 globally.

Mizuho Diversity & Inclusion Month is an interactive project held on a group-wide
and global basis to broaden employees’ connections with others as they are
exposed to a wide variety of ideas and discuss and communicate while participatingin events held throughout the month.

We will host Mizuho Diversity & Inclusion Month on a continued basis to transform
employee mindsets and behaviors, thus encouraging the creation of new corporate
value on a broad scale across the group.

Interactive communication between
senior management and employees(Online video streaming in Japan)

Promoting employee health and wellness

Our strategies forcreating value

In our response to the COVID-19 pandemic, we are prioritizing the health and safety of customers
and employees, and in addition to basic measures such as wearing face masks, we are also
encouraging remote work, ascertaining employee health on a daily basis, and making
consultations available for employees.
Through these and other initiatives promoting employees’ physical and mental health as well as
their health literacy, we are aiming to enhance the performance of each individual and increase
the productivity of the organization as a whole.
In 2021, Mizuho was recognized for the fourth consecutive year under the Health & Productivity
Stock Selection for a number of initiatives, including those aimed at preventing overwork, suchas encouraging the use of paid leave, as well as efforts to prevent increases in the severity ofhealth conditions through measures such as requiring employees to receive subsequent testingin the event of irregularities in their annual health exam, and ensuring that the company
subsidizes part of the cost of the subsequent testing, and offers special leave for comprehensive
medical checkups and gynecological exams. We were also recognized for the way in which wepursue these goals through an integrated framework enabling collaboration between thecompany, health insurance providers, and occupational health services providers.

Mizuho was selected under the 2021
Health & Productivity Stock Selection,
which is jointly administered by
the Ministry of Economy, Tradeand Industry and the Tokyo Stock
Exchange.

Foundations for our
corporate value

Fiscal 2020 was the second year for this event, which featured presentations andworkshops by a range of departments across group companies, events held in
collaboration with other companies, and ERG-hosted events, with a total of over 50
events held around the world on an online basis over the course of one month. A
total of about 13,000 employees participated globally.

Message from theGroup CFO

About Mizuho

Mizuho Diversity & Inclusion MonthBy promoting the active engagement of each employee, our HR strategy aims to maximize the value that we provide tosociety and our customers, thoroughly address changing needs and expectations, and as a result, contribute to thesustainable growth of corporate value.
Also, in light of analysis into the cause of Mizuho Bank’s series of IT system failures, we have also recognized that
continuous enhancement of our people and organization is essential to foster resilienceand support our multilayered system failure response capabilities.

Specifically, in addition to providing opportunities to learn and take on challenges which
we have expanded thus far, through career field management we will provide a wide
range of opportunities for employees to reach their full potential, and revise our personnel
evaluation and compensation frameworks. As for career development, we will enable
employees to accumulate experience in a wide range of fields at Mizuho and provide
thorough, dialogue-based feedback while encouraging each employee to enhance anddemonstrate their expertise, and proactively utilize specialist personnel who have broad
perspectives.

Appendix

In order to realize our objectives and address challenges, we will promote a new HR
strategy which focuses thoroughly on developing each employee’s field of proficiency(expertise) and maximizing their universally recognizable value.

Data section

Our HR strategy as a foundation underpinning corporate value

Nobuhiro KaminoyamaGroup Chief Human Resources Officer

Integrated Report 2021

68

69

Mizuho Financial GroupFoundations for our corporate value

Corporate governance�������� P. 71
Risk governance������������ P. 81
Compliance��������������� P. 87
Fiduciary duties������������� P. 90
Compliance with international
financial regulations���������� P. 91
Stakeholder communication���� P. 92

Integrated Report 2021

70

Foundations for our corporate value

Corporate governanceAs the holding company for a financial services group, Mizuho Financial Group is conducting management that
contributes to the creation of value for our diverse stakeholders, realizing improved corporate value for thegroup through continuous and stable corporate growth, and as a result, contributing to economic and industrial
development and the prosperity of society inside and outside of Japan. With this goal, we have established our
corporate governance system with the Board of Directors at its core, and are working to further enhance our corporate
governance.

Corporate governance system
Basic policy
Ensuring the separation ofsupervision and management

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

Delegating decisions on businessexecution 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 business execution to the executive
officers

Securing independence ofmanagement supervision

Utilize committees and other forms of oversight, comprised mainly of outside directors who are not members ofthe management of Mizuho, and secure transparency and fairness in decision-making processes regarding theappointment 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 governancePrincipal features
Organizational structure

Fairness and transparency

Adopted a Company with Three Committees model of corporate governanceThis structure consists of a Board of Directors, Nominating Committee,
Compensation Committee, and Audit Committee, and enables executive
officers to perform their duties most effectively.

The members of the Nominating Committee and the Compensation Committee
shall all be outside directors.

The chairman of the Board of Directors shall be an outside director.

The Chairmen of the Nominating, Compensation, and Audit Committees shallbe outside directors.
Decision-making regarding the appointment and dismissal of, andcompensation for, the management is primarily conducted by outside directors.

Appropriate disclosure in line with Japan’s Corporate Governance CodeCompliance with Japan’s Corporate Governance Code
Our Corporate Governance Guidelines set out the fundamental perspectives regarding corporate governance at Mizuho, and theframework of the corporate governance system, including the roles, composition, and governing policies regarding the Boardof Directors, executive officers, Nominating Committee, Compensation Committee, and Audit Committee for Mizuho Financial
Group.
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-202104.pdf

71Mizuho Financial GroupCorporate Governance Reporthttps://www.mizuhogroup.com/binaries/content/assets/pdf/mizuhoglobal/who-we-are/governance/governance/g_report/g_report.pdf

Mizuho Financial Group

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

Supervision Appointment of directors

Note: The persons appointed as chairs of the Nominating,Compensation, and Audit Committees are outside directors.

Board of Directors
Outsidedirectors:

Determines the content ofproposals for the General
Meeting of Shareholders regarding
the appointment and dismissalof directors

Chairman

All members, in principle, shall be outside directors.

ChairmanInternal non-executive
directors:
Internal directors who
concurrently serve as
executive officers:
The Chairman shall, in principle, be an outside director.
Non-executive directors shall comprise a majority ofthe directors.

Determines
compensation

Human Resources Review Meeting

Audits theexecution ofduties omposition of the Board ofC
Directors
6 outside
directors

5 directors who
concurrently
serve asexecutive
officers

Determines the compensationfor each individual director andexecutive officer

Compensation Chairman
Committee

All members, in principle, shall be outside directors.

Audit
Committee

Audits the legality andappropriateness of theexecution of duties by directors
and executive officers

Chairman

The majority of members shall be outside directors.

8 non-executive
directors

Risk Committee

Outside Director Session

7 internal
directors

Supervises the execution of duties

Management

Executive
officers

Mizuho Bank
Mizuho Trust & Banking
Mizuho Securities

Audits the execution of duties byexecutive officers

Determines the compensationfor executive officers

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

8 directors

3 years or more but
less than 6 years:

3 directors

6 or more years:

General Meeting of
Shareholders

Board of Directors

Tenure of directors
Less than 3 years:

Audit and Supervisory
Committee

2 directors

Collaborate

Directors
Appointment or dismissal of directors
Mizuho Financial Group’s Nominating Committee selects director candidates. The
requirements that these candidates must satisfy in order to be considered for an
appointment consist of criteria that include qualities such as high integrity anddeep insight, high ethical standards, and commitment to compliance with laws andregulations, in addition to criteria regarding capabilities, utilizing their extensive
experience and knowledge which we expect will enable them to contribute to
Mizuho’s continued and stable growth and improvement in corporate value.

 verview of IndependenceO
Standards
For Mizuho Financial Group’s
Overview of IndependenceStandards 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

Additionally, outside director candidates must meet criteria regarding the ability
to perform supervisory functions in specific areas of expertise, such as corporate
management, risk management, law, and financial accounting.

Appendix

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 becomeunqualified in respect of the requirements and it is deemed that they are no longer
capable of being entrusted with the performance of director duties.

Foundations for our
corporate value

Delegates decisions on business execution●

Our strategies forcreating value

Appoints and dismisses executive officers●

Data section●

Nominating
Committee

Message from theGroup CFO

Diagram

About Mizuho

Message from theGroup CEOCorporate governanceIntegrated Report 2021

72

Foundations for our corporate value

Director skills (experience, expertise, etc.)
Year ofappointment

Name

2018

Member of the Board of Directors
President & Group CEO(Representative Executive Officer)

Seiji Imai

2021

Member of the Board of Directors
Deputy President & Senior Executive
Officer (Representative Executive
Officer)
Head of Corporate & Institutional
Company
Head of Global Corporate Company

MakotoUmemiya2017

Member of the Board of Directors
Senior Executive Officer
Head of Financial Control &Accounting Group (Group CFO)

Motonori
Wakabayashi

2019

Member of the Board of Directors
Senior Executive Officer
Head of Risk Management Group(Group CRO)

Nobuhiro
Kaminoyama

2021

Member of the Board of Directors
Senior Executive Officer
Head of Human Resources Group(Group CHRO)

Yasuhiro Sato2009

Member of the Board of Directors,
Chairman (Kaicho) 2

Hisaaki Hirama

2019

Member of the Board of Directors

Tatsuo Kainaka

2014

Member of the Board of Directors

Yoshimitsu
Kobayashi

2020

Member of the Board of Directors

Ryoji Sato

2020

Member of the Board of Directors

Takashi
Tsukioka

2021

Member of the Board of Directors

Masami
Yamamoto

2019

Member of the Board of Directors

Izumi
Kobayashi

2017

Chairman of the Board of Directors

Nonexecutive
directors

Directors who concurrently serve as
executive officers

Tatsufumi Sakai

Outside directors

Current title andassignment at Mizuho
Financial Group

Three statutory
committees
Nominating Compensation

Audit

Experience and expertise1
Management

Legal affairs andRisk management

Finance andAccounting

Sustainability

International
business

Technology andCybersecurity

Chairman
1. The fields in the chart above are not representative of all of the areas of expertise the directors possess.
2. Chairman (Kaicho) Sato engages in the company’s external activities, but does not chair the Board meetings.
The Board meetings are chaired by the independent director chair, Ms. Kobayashi.

Outside directors and reason for their appointment
Name

73

Reason for appointment as an outside director

Tatsuo Kainaka

Expected to contribute to (i) strengthening the effectiveness of both the decision-making and supervisory functions of Mizuho Financial
Group’s Board of Directors and (ii) the further enhancement of the corporate governance, compliance, and risk management system ofMizuho Financial Group, leveraging his extensive experience, deep insight, and high level of expertise in the legal industry.

Yoshimitsu Kobayashi

Expected to contribute to strengthening the effectiveness of both the decision-making and supervisory functions of Mizuho Financial
Group’s Board of Directors, leveraging his extensive experience as the CEO of a global company and his deep insight into corporate
governance.

Ryoji Sato

Expected to contribute to strengthening the effectiveness of both the decision-making and supervisory functions of Mizuho Financial
Group’s Board of Directors, leveraging his extensive experience, deep insight, and high level of expertise as a certified public accountant.

Takashi Tsukioka

Expected to contribute to strengthening the effectiveness of both the decision-making and supervisory functions of the Board of Directors,
leveraging his deep insight that he has cultivated in Japan and overseas as a CEO in the energy field and his extensive knowledge andexpertise pertaining to sustainability from his work on aspects such as renewable energy.

Masami Yamamoto

Expected to contribute to strengthening the effectiveness of both the decision-making and supervisory functions of Mizuho Financial
Group’s Board of Directors, leveraging his extensive experience as the CEO of a global company and his deep insight and expertise intechnology fields.

Izumi Kobayashi

Expected to contribute to strengthening the effectiveness of both the decision-making and supervisory functions of Mizuho Financial
Group’s Board of Directors, leveraging her extensive experience and deep insight as the head of the Japanese arm of a global financial
institution as well as a representative director of an international institution.

Mizuho Financial GroupChairman

Masami Yamamoto
Chairman

Audit Committee

Tetsuo Seki
Chairman

15 meetings(100%)

With an eye to the social and economic
situation after the COVID-19 pandemic,
the Board discussed medium- to longterm management priorities, including
sustainability initiatives and othermatters, with an understanding of theimportance of efforts such as expanding
the business base. The Board also
monitored progress on the 5-YearBusiness Plan, the status of efforts
to identify the cause of the IT system
failures that occurred at Mizuho Bank andrespond to customers, and other matters.

The Nominating Committee determines the content ofproposals regarding the appointment and dismissal of
directors of Mizuho Financial Group to be submitted to
the General Meeting of Shareholders. The Committee
also approves personnel matters concerning thedirectors of Mizuho Bank, Mizuho Trust & Banking, andMizuho Securities (“Three Core Companies”), including
the appointment and dismissal of directors and theselection of representative directors and senior directors.

7 meetings(100%)

To establish a more effective governancesystem and strengthen the businessexecution framework for pursuing a nextgeneration financial business model, theCommittee selected director candidates
for Mizuho Financial Group, approved
the selection of directors of the Three
Core Companies, and performed otherrelated duties. In addition, the Committee
discussed the status of the creation andoperation of the succession plan andtalent development.

The Compensation Committee determines thecompensation for each Mizuho Financial Group
individual director and executive officer as defined in
the Companies Act, exercises the approval rights heldby Mizuho Financial Group regarding compensation ofeach individual director of the Three Core Companies,
determines the basic policy and executive compensation
system for Mizuho Financial Group, and exercises
the approval rights held by Mizuho Financial Group
regarding the basic policy and executive compensation
system for the Three Core Companies.

5 meetings(100%)For the purpose of ensuring theobjectivity and transparency of
executive compensation, the Committee
revised the basic policy for executive
compensation in light of regulations,social and economic circumstances, andother factors in and outside Japan, anddiscussed matters including the ideal
form of executive compensation which
will act as an incentive for each director
and executive officer to maximize theirperformance in their respective roles.

The Audit Committee audits the execution of duties bydirectors and executive officers; inspects and monitors
the establishment and operation status of the internal
control systems of Mizuho Financial Group and its
subsidiaries; monitors and inspects the execution ofduties of executive officers regarding the corporate
management of subsidiaries and affiliates; and creates
audit reports. In addition the committee determines
the content of proposals regarding the appointment,
dismissal, or non-reappointment of accounting auditors
to be submitted to the General Meeting of Shareholders.

17 meetings(100%)The Committee confirmed theeffectiveness of the structure for ensuring
appropriate conduct of operations(internal control system) and monitored
progress on the 5-Year Business Planand structural reforms, focusing on
confirming the status of efforts to identify
the cause of the IT system failures that
occurred at Mizuho Bank and prevent
further incidents, and other related
matters.

Major agenda items for fiscal 2020 Board of Directors’ meetings
Board of Directors’ meeting agendas

Report/Discussion

Business performance review

Monitoring the progress of each in-house company’s fiscal business plan toward theachievement of the 5-Year Business Plan

Status of response to IT system failures

Response to customers in light of the IT system failures, identification of the cause,
establishment of the System Failure Special Investigative Committee, etc.

Reorganization of customer-facing in-housecompanies

Reconfiguration to an optimal customer relations framework in response to changes in thebusiness environment (RBC/CIC)

Sustainability initiatives

Annual review of management system for responsible financing and investment, revision ofEnvironmental Policy in order to respond to the Paris Agreement, etc.

Evaluation of Board of Directors’
effectivenessIn order to enhance the effectiveness of the Board of Directors, identifying points to address inorder to expand discussion on medium- to long-term management priorities and other matters

Merger of Mizuho Research Institute, Mizuho
Information & Research Institute, and othergroup companies

Establishment of a new company in the non-financial domain to consolidate Mizuho’s strengths
in research, consulting, and IT/digital

Integrated Report 2021

About Mizuho

The main roles of the Board of Directors are making
decisions on business execution such as the basic
management policy, which are matters to be determinedsolely by the Board of Directors under laws andregulations, and supervising the execution of duties bydirectors and executive officers. The Board of Directors
shall, in principle, delegate to the President & CEO
of Mizuho Financial Group, decisions on businessexecution, excluding matters to be determined solely
by the Board of Directors under laws and regulations,for the purpose of realizing quick and flexible decisionmaking and expeditious corporate management andstrengthening the supervision of executive officers andother personnel by the Board of Directors.

Message from theGroup CFO

Tatsuo Kainaka

Operation in FY2020

Our strategies forcreating value

Chairman of the Board of
Directors

Number ofmeetings in
FY2020 (averageattendance)

Foundations for our
corporate valueCompensation Committee

Nominating Committee

Board of Directors

Izumi Kobayashi

Main roles

Data section

Board/Committee
ChairmanAppendix

Operation of the Board of Directors and each committee

Message from theGroup CEOCorporate governance74

Foundations for our corporate value

Primary initiatives for enhancing the effectiveness of the Board of Directors
Evaluation of Board of Directors’ effectiveness
The Board of Directors conducts annual evaluations regarding the operation of the Board of Directors, the content ofdeliberations, and other items in order to continuously enhance the effectiveness of the Board of Directors.
The most recent evaluation was conducted for the period of June 2019 to June 2020 (director tenure period) and theresults were deliberated on at the September 2020 meeting of the Board of Directors.
1. Evaluation Method
Each director who held office during the period under review conducted a self-evaluation related to the overall
operation of the Board of Directors and each committee.
The evaluation consists of a survey covering items such as the utilization of the Board of Directors’ capabilities,
matters to be discussed, operation, communication between the supervisory and business execution lines,
committees, and areas identified in the previous evaluation of effectiveness. Based on the responses to the survey,
the effectiveness of the Board of Directors, initiatives to enhance the effectiveness, and other matters aredeliberated on.
2. Evaluation results
The evaluation results are as follows:
Evaluation(1) Utilization of theBoard of Directors’capabilities(2) Matters to be
discussed• The Board of Directors is fulfilling its role thoroughly and appropriately utilizing its capabilities.

The Board of Directors proved its effectiveness in regards to monitoring the progress on the 5-Year Business Plan
Strong contribution to sustainability initiatives• The contribution of each director and the degree of substantial discussion were sufficient.

Outside directors gave their advice proactively and executives took this into consideration in their business execution
Non-executive directors gave their opinion based on their respective experience and knowledge• The overall operation of the Board of Directors was appropriate, but there is room for improvement in the explanations(3) Operation(4) Communication
between the supervisoryand business executionline(5) Committees

and materials. Additionally, there were some requests for more expansive discussion of topics concerning medium- tolong-term management priorities.
In some cases the information concerning an agenda item was too voluminous and the point needing to be addressed
was unclear
There should have been an agenda item regarding the effects of COVID-19 on business strategy, sustainability, etc.

• Off-site meetings on management issues are meaningful. Good communication between the supervisory and businessexecution line.
Some requests for more interaction with the frontlinesSome evaluated the remote operations of the Board of Directors as being sensible, while others would prefer in-person
meetings• In general, the composition and management of and discussions at each committee were appropriate.
Confirmed that the committees continue to demonstrate sufficient functions.

In regard to areas identified in the previous evaluation of effectiveness (June 2018 – June 2019) from the perspective offurther enhancing the effectiveness of the Board of Directors, namely monitoring the 5-Year Business Plan andcontinuous communication aimed at increasing the quality of discussions, improvements were made by selecting
these as agenda items at off-site meetings on management issues and other efforts. Also, key topics of importance tomanagement were deliberated on in detail, including the new HR strategy, key initiatives in Japan and outside Japan,
objectives in terms of returns to shareholders, and initiatives at each entity going forward.
3. Summary
The Board of Directors and the Committees are performing their functions and have been evaluated to be highly
effective. On the other hand, from the perspective of further enhancing the effectiveness of the Board of Directors,
the following items identified through the most recent evaluation will be addressed.
• Build a platform as a foundation for substantive discussions at the Board of Directors• Expand agenda items related to medium- to long-term management priorities

75

Mizuho Financial Group9

Reference: Status of the response to the IT system failures that occurred at Mizuho Bank
In regards to the IT system failures that occurred at Mizuho Bank in February and March of 2021, the Board of Directorsof Mizuho Financial Group requested a report on the response to customers, identification of the cause, and otheritems. Additionally, a System Failure Response Evaluation Committee, composed only of outside directors, wasestablished and it monitored the formulation of measures to prevent further incidents. Going forward, this Committee
will continue to follow up on the status of implementation of measures to prevent further incidents and other matters
as appropriate.

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.

• Training is provided for newly

appointed directors, mainly
regarding the duties andresponsibilities of directors, and isconducted by an outside instructor(lawyer).
• Directors gain an overall perspectiveof the management of the group by
discussing various proposals,
reports, and other activities in the
Board of Directors’ meetings.
• In light of the recent IT system
failures, a seminar regarding risk
management led by an external
instructor was held.
• Training is also held and conductedby an outside instructor regarding
compliance and customer protection
and awareness of human rights
related issues.
• When necessary for the
performance of duties, directors incharge of various areas makeindividual presentations; advice andinstruction is provided 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 thegroup’s financial and otherbusinesses• Intensive explanation at the timeof appointment will be conductedindividually 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, businessdomain, business strategy,
business plan, finances,
corporate governance system,
etc.

Post-appointment (the examples below were conducted for fiscal 2020)

Deepening understanding concerning Board of Directors’ proposals• Providing for thorough explanations of Board of Directors’ proposals

in advance and follow-up (after each Board meeting)
Improving communication at times other than the Board of Directors’
meetings• Outside Director Session
At which outside directors mutually exchange information and share
their understanding while exchanging opinions on management
matters, the shape that corporate governance should take, and otheritems (held once).
● Off-site meetings on management issues (held 9 times between April
2020 and March 2021)
Details are provided above
Other opportunities to acquire/enhance knowledge● Watching the Group-wide General Managers’ Meeting
Each meeting is held on an as-needed basis via the online meetingsystem.

Appendix1

Offering all directors
opportunities for acquiringknowledge and self-improvement

About Mizuho

Topics included the current status and future initiatives related to (1) progress on structural reforms,(2) key strategies of in-house companies, and (3) situation at each entity.

Message from theGroup CFO

Number oftimes held

OutlineOur strategies forcreating value

Fiscal 2020 initiatives and number of times held

Foundations for our
corporate value

Off-site meetings on management issues serve an important function that complements the Board of Directors. Thesemeetings are designed to enable outside directors to enhance their communications with executives, to fully
understand the status of business execution, and to lead to high-quality discussions at Board of Directors’ meetings.
They cover themes such as topics of concern to senior management.

Data section

Off-site meetings on management issues

Message from theGroup CEOCorporate governanceIntegrated Report 2021

76

Foundations for our corporate valueCompensation for executive officers
At Mizuho Financial Group, the Compensation Committee resolves on the basic policy for executive compensation
which determines matters regarding the components of compensation for each individual director, executive officer as
defined in the Companies Act, and executive officer as defined in our internal regulations (collectively, “Officers”).

Outline of the basic policy for executive compensation

Management that contributes to value

Improve corporate value throughcreation for various stakeholders

continuous and stable corporate growth

Executive compensation which leads to the above
Functions as an incentive for Officers
to exercise their designated function to
the fullest

Compensation aligned to the
responsibilities and performance ofeach Officer

Governance to ensure fair and objective executive compensation

Compensation Committee
The members of the Compensation Committee are all outside directors (as of March 2021)
Determination of compensation

Directors and executive officers as defined in the Companies Act

President & CEO

Directors

Approval ofcompensation
Determination of compensation
Approval ofcompensation

Directors

Directors

Executive officers as definedin our internal regulations

Three Core Companies
77

Mizuho Financial Group

Executive officers as definedin the Companies Act ompensation for officers responsible for business execution shall, in principle, consist of Base Salary, StockC
Compensation, and Performance Payments. Additionally, the ratio and composition of fixed compensation andperformance-based compensation (variable compensation) is determined based on the role and responsibilities ofthe officer and for the Group CEO the ratio of fixed compensation is set at a minimum.
From the perspective of ensuring the effectiveness of the supervisory function, compensation for non-executive
officers responsible for management supervision shall, in principle, be in the form of fixed compensation, consistingof Base Salary and Stock Compensation I. Such composition shall, in principle, be 85% and 15% for Base Salary andStock Compensation I, respectively.
Example of composition of compensation for
executives responsible for business execution

A standard amount based on position,with additions based on each officer’srole and duties, paid monthly in cash.

42.5%
60.0%

(cash
compensation)

85.0%
100.0%

Deferred
payments overthree years ofMizuho Financial
Group stock.
Deferred
payment overthree years forthe portion
above a certain
amount.

Subject to malus/clawback

Ratio of
Stock
Compensation

5.0%
10.5%

32.5%

7.5%

15.5%

25.0%

50.0%

35.0%
15.0%

24.5%

Low

Our strategies forcreating value

Ratio of
Stock
Compensation

25.0%

Ratio of variable compensation/
stock compensationHigh

1. Depending on factors including the performance of the company and the individual, a portion of the deferred payment may be
reduced or forfeited (via malus/clawback) upon the resolution of the Compensation Committee.
2. For officers hired outside Japan, the base amount and the composition and content of executive compensation may be
determined individually based on the local compensation system and practices as well as industry compensation benchmarks.

Determined based on a comprehensive evaluation of the factors below, with weight given to Consolidated Net
Business Profits + Net Gains (Losses) related to ETFs and others— Financial indicators (Consolidated ROE, expense ratio, Consolidated Gross Profits RORA, CET1 capital ratio)— Results taking into consideration the amount of reduction in cross-shareholdings and other factors— Results for the organization (in-house company, unit, group) they are in charge of compared to targets,compared to past fiscal years, and compared to other companies— Medium- to long-term initiatives, including sustainability-related initiatives, and other factors

Compensation determination process
The Compensation Committee shall determine the executive compensation system including the compensation
structure taking into account the basic policy for executive compensation. In addition, in order to ensure fairness andFoundations for our
corporate value

Performance
Payments

Factors including
progress onachievement of the
5-Year Business Plan
and the results oforganizations (e.g.
in-housecompany/unit) thateach officer is incharge of arereflected to a baseamount based on
position.

65.0%

Data section

Stock
Compensation II(non-cash
compensation)

Based on position, paid upon theofficer’s retirement in the form ofMizuho Financial Group stock.

50.0%

Appendix

Stock
Compensation I(non-cash
compensation)

Group CEO

Message from theGroup CFO

Executive officers
Fixed compensation only

Stock
Compensation(cash
compensation)

Example of composition ofcompensation for
non-executive officers
responsible for management
supervision

Stock
Compensation

Base Salary

Description

Stock
Compensation

Performance-based compensation

Fixed compensation

Compensation
type

About Mizuho

Compensation system

Message from theGroup CEOCorporate governanceobjectivity concerning the compensation for each officer, the Compensation Committee shall determine thecompensation for each individual director and executive officer of Mizuho Financial Group as defined in the
Companies Act and approve the compensation of each individual director of the Three Core Companies.
Integrated Report 2021

78

Foundations for our corporate value

Board of Directors
b

c

a
Newly
appointedg Internal director
Outside directora Takashi Tsukioka
Outside director
Member of the Nominating Committee /Member of the Compensation Committee /Chairman of the Audit Committee

 irector who concurrentlyD
serves as an executive
officerNon-executive director
For further details on the
backgrounds of directors,
please refer to our website:https://www.mizuhogroup.
com/who-we-are/companyinformation/executivesihCareer highlights

b Yasuhiro Sato
Member of the Board of
Directors
Chairman (Kaicho)** Chairman (Kaicho) Sato engages in thecompany’s external activities, but does
not chair the Board meetings.
The Board meetings are chaired by the
independent director chair, Ms.
Kobayashi.

Career highlights (entity)

Outside director
Member of the Nominating Committee

Career highlights

President & CEO (BK, CB)

President, Mitsubishi Chemical

Chairman, Idemitsu Kosan

President & Group CEO (FG)

Holdings

Special Advisor, Idemitsu

Director, Mitsubishi Chemical

Kosan (current)

Holdings (current)

Motonori Wakabayashi
Member of the Board of Directors
Senior Executive Officer / Head of Risk
Management Group (Group CRO)

Career highlights (entity)

h Izumi Kobayashi
Outside director
Chairman of the Board of Directors
Member of the Nominating Committee /Member of the Risk Committee

Career highlights

i Makoto Umemiya
Member of the Board of Directors
Senior Executive Officer /Head of Financial Control & Accounting
Group (Group CFO)

Career highlights (entity)

General Manager of Industry

President and Representative

General Manager of Osaka

Research Department (BK, CB)

Director, Merrill Lynch Japan

Branch (BK)Executive Officer in charge of

Securities

General Manager of Financial

Banking (BK)Executive Vice President, thePlanning Department (FG, BK)Head of Research & Consulting

Multilateral Investment

Unit (FG, BK)

Guarantee Agency, the WorldBank Group

Mizuho Financial Group

Yoshimitsu Kobayashi

CEO, Idemitsu Kosan

g

79

c

Message from theGroup CEOCorporate governance

e

l

k

m

Message from theGroup CFOj

Newly
appointed

Career highlights

Outside director
Member of the Audit Committee

Career highlights

f Tatsuo Kainaka
Outside director
Chairman of the Nominating Committee /Member of the Compensation Committee /Member of the Audit Committee

Lawyer (current)

The former Mizuho Bank and theformer Mizuho Corporate Bank
conducted a merger on July 1,
2013, whereby the former Mizuho
Corporate Bank was the surviving
company in an absorption-typemerger and changed its tradename to Mizuho Bank.

l Seiji Imaim Hisaaki Hirama

Career highlights

President, Fujitsu

CEO, Tohmatsu & Co.

Director & Senior Advisor,

Certified Public Accountant

the Tokyo High Public

Fujitsu (current)(current)

Prosecutors OfficeSuperintending Prosecutor ofJustice of the Supreme Courtj

Nobuhiro Kaminoyama
Member of the Board of Directors
Senior Executive Officer /Head of Human Resources Group(Group CHRO)

Career highlights (entity)

k Tatsufumi Sakai
Member of the Board of Directors
President & Group CEO (Representative
Executive Officer)

Career highlights (entity)

Definition of terms
FG: Mizuho Financial Group
BK: Mizuho Bank
TB: Mizuho Trust & Banking
SC: Mizuho Securities
CB: Mizuho Corporate Bank

Member of the Board of Directors
Deputy President & Senior Executive
Officer (Representative Executive Officer) /Head of Corporate & Institutional
Company /Head of Global Corporate Company

Career highlights (entity)

General Manager of Corporate

Head of Investment Banking

General Manager of Seoul

Banking Department No. 9 (BK)

Unit (FG, BK, CB)

Branch (BK)General Manager of Corporate

Head of International Banking

Head of Asia & Oceania excl.

Secretariat (FG, BK, TB, SC)

Unit (FG, BK)

East Asia (FG, BK)

President & CEO (SC)Head of Global Products Unit
(FG)

Data section

Outside director
Member of the Nominating Committee /Chairman of the Compensation Committee

e Ryoji Sato

Member of the Board of Directors
Member of the Audit Committee /Chairman of the Risk Committee

Career highlights (entity)
 eneral Manager ofG
Accounting Department (FG,BK, CB)
General Manager of Nagoya
Corporate Banking Department(BK)
Head of Internal Audit Group(BK)

Integrated Report 2021

Appendixd Masami Yamamoto

Foundations for our
corporate value

Our strategies forcreating value

Newly
appointedf
About Mizuhod80

Foundations for our corporate value

Risk governanceRisk governance overview
Risk governance is a part of Mizuho’s corporate governance framework, centered on our risk appetite framework(RAF). The Board of Directors determines fundamental matters regarding the RAF, along with its management systems
and specific risk appetites, and incorporates these in document form as the risk appetite statement (RAS).
At Mizuho, we also work to foster and promote a sound risk culture to support this risk governance framework. The
effective administration of the RAF leads to the creation of a sound risk culture, and at the same time, cultivating asound risk culture creates a foundation for the disciplined risk-taking and risk communication which are promoted aspart of the administration of the RAF.
To ensure strong risk governance, we maintain a risk management and compliance structure that operates inaccordance with the principles of the “three lines of defense.”

Risk culture
We foster a sound risk culture in which all executive
officers and employees maintain a high level ofawareness regarding risk, and endeavor to make proper
judgments and take appropriate actions rooted in good
sense and ethical standards. Such judgments and actions
allow us to achieve our risk appetite and enhance ourcorporate value.
We have also established Behavioral Guidelines for a
Sound Risk Culture, and work to ensure that executive
officers and employees understand these principles
through messages from senior management, training
sessions and other measures. For Mizuho to put the“customer first principle” into practice and enhance ourcorporate value, it is essential that all members maintainan attitude of not simply avoiding risk, but rather taking

appropriate risk. These guidelines provide a foundation
for the appropriate values and courses of action for
Mizuho’s executive officers and employees to take whenapproaching risks. The guidelines are aligned with thefive Mizuho Values that form a part of Mizuho’s Corporate
Philosophy, and executive officers and employees canrefer to them when they are unsure of a risk-related
judgment that needs to be made in their daily work.
Putting these guidelines into practice improves ourability to address and counter risks, and fosters a soundrisk culture.
These initiatives are also important from the standpointof internal control, ultimately helping to prevent
inappropriate behavior by executive officers andemployees.

Risk appetite framework (RAF)
The purpose of our RAF is to maximize our corporate
value by securing sustainable and stable profits, and tofulfill our social responsibilities. Based on such purpose,
our core risk appetite is to take appropriate risk andprovide solutions based on our customers’ actual needs,
establishing our competitive advantage against ourpeers.
We have positioned the RAF as the corporate
management framework to support taking the types and81

Mizuho Financial Grouplevels of risk that we will accept in order to implement
our business and financial strategies. We will further
concretely define our risk appetite in our medium-term
and fiscal year business plans. The risk appetite forms
the basis for establishing our business strategy, resource
allocation, and earnings plans as well as monitoring theoperating status, thus integrating risk management,
business strategy, and profits in order to achieve
disciplined risk-taking that achieves an optimal balanceof risk and return.

Formulation and monitoring of risk appetite
Risk appetite is determined through management
discussions on the outlook for external factors such as
the macroeconomic, regulatory, and competitiveenvironment, along with potential risk events such as
economic slowdown and turbulence in financial markets.
These are then incorporated into main and risk scenariosthat are shared internally.

Further, the risk appetite for the entire group is shared with
the in-house companies that implement strategies, toensure the effectiveness of the RAF. The in-housecompanies in turn formulate individual risk appetite policies
to implement the group’s overall policy, and set risk
appetite metrics and levels to meet group metrics andlevels.

We then formulate a group-wide risk appetite policy basedon our awareness of these external environments, create
specific strategies and measures according to this policy,
and determine corporate resource allocation and earnings
plans. Our risk appetite metrics are expressed in terms ofcapital strength, profitability, and liquidity, utilizing
measures such as CET1 Capital Ratio, ROE, and LCR.

Monitoring of the operational status for the establishedrisk appetite is conducted by the Risk Management
Committee (Chairman: Group CRO) on a quarterly basis
and as necessary. As part of this process, the Group CRO
and each in-house company work to identify issues
related to risk and share information on these issues.
This monitoring enables timely and appropriate actions,
including flexible revisions to our risk appetite andstrategies, to be discussed and carried out in the event ofchanges in the external environment that increase risk or
impede our risk appetite and strategies.

Supervision

Management

Board of Directors

Audit Committee• Audits the execution of duties by the executive
officers and the management regarding RAF

Risk Committee• Advises the Board of Directors and makes

proposals to the management regarding risk
governancePresident & Group CEO

About Mizuho

Executive Management Committee•••

Formulates risk appetite policy
Establishes risk appetite metrics/level
Formulates RAS• Conducts business operations consistent withthe risk appetite• Embeds a sound risk culture in each line ofbusiness

Risk Management Committee (Chairman: Group CRO1)• Monitors the operation of RAF

Appendix• D etermines basic matters regarding RAF and RAS• S upervises business execution by the
management based on the above determinations

Data section

Mizuho’s RAF Control Structure

Message from theGroup CFO

In implementing the RAF, the Board of Directors decides
on basic matters, including the risk appetite policy,
metrics, and levels of risk, and operations are supervised
based on the Board’s decisions. In addition, the Risk
Committee, which advises the Board of Directors,
provides advice regarding risk governance and offers
suggestions to management.

On the other hand, to implement the RAF in the courseof 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. Also,
heads of in-house companies, units, and groups are
responsible for planning and implementing strategies
based on risk appetite, and as the individuals in chargeof risk-taking, conduct operations. The Internal Audit
Group provides objective and comprehensive
assessments of the effectiveness of the RAF from an
independent perspective and offers advice andrecommendations for addressing any issues that arise.

Our strategies forcreating value

Our risk appetite consists of a risk appetite policy thatserves as the fundamental policy regarding our risktaking activities, and risk appetite metrics that serve as ameans of quantifying the level of risk-taking based on therisk appetite policy.

Foundations for our
corporate value

Systems for operating the risk appetite framework

Message from theGroup CEORisk governance

Balance Sheet Management Committee (Chairman: Group CFO2)• Formulates and promotes balance sheet management-centered strategies related to risk
control and risk-taking

1. Group Chief Risk Officer

2. Group Chief Financial Officer

Integrated Report 2021

82

Foundations for our corporate value

Three lines of defense
system (second line), along with an independent thirdline of internal auditing. In addition, Mizuho Financial
Group sets group strategies and allocates resources,
monitoring the autonomous controls in the first line atcore group companies in order to strengthen the systemproviding appropriate responses.

Our definition of the three lines of defense and their roles

Our risk management and compliance framework

The third line-of-defense is independent of the first and second lines
and involves assessment and examination of the operations of thefirst and second lines, and is responsible for providing advice andguidance to settle issues.

Department(s)in charge of risk Internal
audit
management/compliance3rd line

3rd line

Monitoring

In-house companies/unitsFirst line-of-defense
autonomous control

Internal Audit GroupInternal audit

Basic policies
Submit/report

Report regarding
the first
line-of-defense
autonomous
control
Formulatestrategies,
allocate businessresources, etc.

2nd line

Internal audit function

The second line-of-defense oversees (monitors), measures, andassesses the first line’s autonomous control activities, and is
responsible for establishing and implementing basic policies for risk
management and compliance.

Submit/report

Department(s)in charge of risk Internal
audit
management/compliance
Monitoring

1st line

Risk management and compliance function

Internal Audit Group

Core group companies*
Basic policies

Internal audit

2nd line

Second line

The first line-of-defense involves daily operations based on the rules,
procedures, and risk appetite, and has a primary responsibility forrisks and compliance matters accompanying the conduct of businessas a risk owner, and for performing autonomous control activities (toidentify, assess, and manage/control risks and compliance matters).

Mizuho Financial Group

1st line

Autonomous control function

Third line

First line

In accordance with the “three lines of defense” approachin the Corporate Governance Principles for Banks
released by the Basel Committee on Banking Supervisionand the definitions and roles outlined below, we ensure
appropriate and effective risk governance throughautonomous controls (first line) and a check-and-balance

Divisions/unitsFirst line-of-defense
autonomous control*O f 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 “three lines of defense” concept.

Comprehensive risk management
Basic approach
For the group as a whole, in order to ensure sound andstable corporate management and enhance ourcorporate value, appropriately managing risk andcontrolling risk are key issues relating to overallmanagement, and therefore we are working to put inplace risk management systems.
Mizuho Financial Group has established basic policies
for risk management that are applicable to the group asa whole. In line with these basic policies, as a group weanalyze risk comprehensively from multiple perspectives
and adopt a variety of measures to strengthen andenhance the sophistication of our risk management
system.
We have positioned our RAF as the corporate
management framework for realizing our risk appetite aswell as comprehensive risk management as a framework
for managing risk from every angle.

Comprehensive risk management systems
We recognize that conducting operations tailored to therisks and managing such risks is a key issue relating tooverall management. In order to implement our businessstrategies while maintaining our financial stability, we
maintain comprehensive risk management and control
measures.

83

Mizuho Financial Group

Mizuho Financial Group maintains basic policies for risk
management established by the Board of Directors thatare applicable to the entire group. These policies clearly
define the kinds of risks to be managed, set forth theorganizational structure, and provide for the employee
training necessary to ensure appropriate levels of risk
management. The policies also provide for audits tomeasure the effectiveness and suitability of the
management structure. In line with these basic policies,

The Risk Management Committee chaired by the GroupCRO provides integrated monitoring and management of
the overall risk for the group. The Group CRO reports therisk management situation to the Board of Directors, theRisk Committee, and the Executive Management
Committee regularly and as necessary. In addition,
Mizuho Financial Group receives reports and applications
for approval concerning the risk management situationfrom our core group companies and gives themappropriate instructions concerning risk management as
necessary.

In addition to managing each type of risk individually, we
have established a risk management structure to identify
and evaluate overall risk and to keep risk within limits
that are acceptable.
In line with the basic policies relating to overall risk
management established by Mizuho Financial Group, we
are working to take even more proactive andsophisticated approaches to risk management.

For more information on our risk management, please visit our website.

https://www.mizuhogroup.com/who-we-are/internal/r_management

About Mizuho

We classify and manage the risks that arise in ourbusinesses according to the various kinds of risk,
including credit risk, market risk, liquidity risk, andoperational risk. Moreover, in each of our groupcompanies we adopt the same approach of managing
risks, such as settlement risk, trust banking operations
risk, and other risks appropriately given their nature.

Message from theGroup CFO

we maintain various measures to strengthen andenhance the sophistication of our risk management
system.

Message from theGroup CEORisk governanceMarket risk
Liquidity risk

Risk Management Department

Operational risk
Credit Risk Management
Department

Officers responsible
for riskmanagement(e.g. Group CRO)

Operational risk

Board of Directors

President &Group CEO

Credit risk

Risk Committee

Set risk management policies
Give instructions and approval concerning risk management

Mizuho Bank

Mizuho Trust & Banking

Mizuho Securities

Information technology risk

IT & Systems Planning Department

Operations risk

Operations Planning Department

Legal risk

Legal Department

Human capital risk

Global Talent Planning andManagement Department

Tangible asset risk

Facility Management Department

Regulatory risk

Strategic Planning Department

Reputational risk

Corporate Communications
Department

Report the risk management situation
Submit applications concerning risk management

Mizuho Americas

Other core group companies

Integrated Report 2021

AppendixBusiness policy
committees(e.g. Risk Management Committee)

Credit risk

Foundations for our
corporate value

Departments responsible for risk management

Executive Management
Committee

Data section

Management
Comprehensive risks

Supervision/Audit

Our strategies forcreating value

Mizuho Financial Group84

Foundations for our corporate value

Risk capital allocation
We endeavor to obtain a clear grasp of the group’s
overall risk exposure and implement measures to makesure this exposure is within limits that are acceptable
and are in accordance with the risk capital allocation
framework.
More specifically, we allocate risk capital to our coregroup companies (including their subsidiaries) to control
risk within the limits set for each company. We also
control risk within acceptable limits by working to ensurethat the overall risk on a consolidated basis does notexceed our financial strength. To ensure the ongoing
financial soundness of Mizuho Financial Group and ourcore group companies we regularly monitor the mannerin which risk capital is being used in order to obtain an
accurate grasp of the risk profile within this framework.
Reports are also submitted to the Board of Directors andother 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 capitalMizuho Financial Group (holding company)

Mizuho Bank

Risk exposure of the group

Setting of upper limits based on risk capitaland exercise of control over various risks

Allocated risk capital

Financial strengthof the group

ExamplesCapitalRisk exposure ofcore group companies*

Mizuho Bank

Mizuho Trust & Banking
Mizuho Securities

Credit risk
Market risk
Stock price risk
Operational risk

Allocatedtobusiness
units

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

Top risk management
At Mizuho Financial Group, we specify risks that arerecognized to have a major potential impact on the groupas “top risks”, and have introduced top risk management
methods.

Through this approach, we endeavor to deepen
communication regarding risks, seek to create common
perspectives regarding risks, and work to secure
consistency in awareness of various types of risks.

We gather wide-ranging information on potential risk
events which may harm our corporate value in light of ourparticular vulnerabilities, the external businessenvironment, and other factors. With this information, we
assess risk contagion channels, probabilities, impacts, andsimilar to identify critical potential risk events. We thendesignate top risks with consideration to the difficulty ofrisk control and based on discussions at the executive
management level.

For the top risks that are identified, the status of controls
is confirmed, and, when deemed necessary consideration
is given to additional risk controls. In addition, the Risk
Committee, Board of Directors, and other bodies receive
reports on these top risks, allowing for multifaceted
confirmation from external experts and outside directors
regarding the appropriateness of the designation of top
risks, status of controls, and other considerations.
As of March 2021, the items on page 86 have been
designated as top risks.

85

Mizuho Financial GroupTop risks

Rapid advancement ofsocial change occurring due
to climate change

IT system failure/
Cyber attacks

Money laundering/
Financing of terrorism
Inappropriate behavior or
nonfeasance by employees/
executive officers

arising from deteriorating performance and difficulty in securing
financing at clients with a delayed response to the sudden
increase in momentum toward climate change action.
• Damage to our own corporate value due to a delay in the Mizuho
group’s response to climate change or similar factors.

• Large-scale data breach due to a major IT system failure or cyberattack causing wide-spread inconvenience or disadvantage tocustomers and damaging trust, leading to the loss of business
opportunities.

• Economic losses stemming from government fines/penalties as aresult of insufficient AML/CFT measures. Loss of business
opportunities due to reduced industry standing on a global basis
and damage to customer trust.

• Damage to customer trust and loss of business opportunities

stemming from public disapproval of inappropriate behavior or
nonfeasance deemed to be out of line with social norms.

• Stagnation in Mizuho’s digitalization strategy due to factors
Rapid development ofdigital society

including the rapid expansion of revolutionary financial services,
the rise of new economic landscapes, and the resulting
intensification of competition as companies from other industries
enter the field of finance.

• Strengthen our response to transition risk via stronger

engagement, enhanced risk control for carbon-related sectors,
and other efforts.

• Revise our Environmental Policy in order to clarify ourtransformation to a portfolio aligned with the targets in the Paris
Agreement and other efforts.
• Set a target for reducing the Mizuho group’s greenhouse gas(GHG) emissions.
• Predictive management based on monitoring changes in theexternal environment and other information.
• Formulate and implement measures to prevent further incidents
following a recent series of IT system failures (revise system
failure management and prepare a system contingency plan
(SCP)).
• Strengthen management in response to expanded use of cloudservices and the remote access environment.
• Continue to enhance anti-money laundering measures and otherefforts in line with laws/regulations and guidelines from Japan’s
Financial Services Agency.
• Ascertain/analyze trends in economic sanctions and formulate
measures for potential risks.
• Analyze the cause of the incident and formulate improvement
measures.
• Enhance predictive management in order to reduce instances of
misconduct* in line with KRI or other goals.
relevant to our digitalization strategy and initiatives at othercompanies.

Stress testing

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, andother factors. We can confirm whether our capital
adequacy ratio, performance, and other indicators are
sufficient in the case that stress events actuallymaterialize. If such indicators fall below the necessarylevel, 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-stress stage toassess the adequacy of the capital level.
Furthermore, to structure robust risk management
systems, stress testing is also used to manage risk invarious risk categories, such as market risk.
This process also serves as a foundation forunderstanding the characteristics of our businessportfolio and enables planning in advance regarding thecourse of action which should be taken if a stress event
occurs, and is conducted regularly to enhance our risk
management capabilities.

Mizuho’s stress testing

1. Preparing scenarios

2. Calculation of risk impact

3. Analysis and use of results• C urrent economic conditions and future outlook• V ulnerabilities of the group’s business and• Calculation of the impact on the group when

• Assessment of the suitability of our risk appetite

financial structure

About Mizuho• Predictive management based on monitoring policy trends*A violation of laws, regulations, or rules; or an action or misfeasance in conflict with the social responsibility or public duty expected of the Mizuho group.
Note: The risks described here are only some of the possible risks we are aware of. For more comprehensive information on the group’s risks, please refer to ourForm 20-F and other related documents.

We assess the suitability of our risk appetite and thevalidity of our business plans through stress testing,calculating and assessing the financial effect on ourcapital adequacy ratio and on our business.

Message from theGroup CFO

• Increased credit costs and loss in value of cross-shareholdings

which should be subject to stronger management in light of the
impacts on our clients’ business environment and other factors,
then record additional reserves or take other steps as needed.
• Market risk management: Monitor the amount of risk and losses
based on the market environment, including interest rate hikes
and declines in stock prices, and promote hedging strategies for
asset holdings.
• Foreign currency liquidity risk management: Expand monitoring
indicators and increase monitoring frequency.
• Predictive management based on monitoring changes in theexternal environment and other information.

Our strategies forcreating value

Inflation concerns andinterest rate hikes in the US• Credit risk management: Specify and revise areas of our portfolio

the risk scenario materializes• Main items to calculate: Capital adequacy
ratio, losses, VAR, etc.

Foundations for our
corporate value

Intensification of
US-China friction

corporate earnings, affected by a delayed end to the pandemic
resulting from the spread of variants and other factors, as well as
rapid social change.
• Deterioration of markets-related earnings due to interest rate
hikes, increased volatility, and other factors resulting from fiscal
uncertainty. Instability in foreign currency funding and expansionof the loan-to-deposit ratio due to increased demand for foreign
currency financing.
• Increase in credit costs due to factors including the conflation offriction in areas such as technological competition, national
security, and human rights, supply chain disruption, and tensions
in regard to conditions in East Asia, particularly Taiwan. Turmoil infinancial markets resulting in deterioration of markets-related
earnings.
• Deterioration of markets-related earnings due to the
manifestation of inflation concerns resulting from improved
employment rates and other factors and a sudden rise inlong-term US interest rates based on an outlook for an early
return to normal for monetary policy measures.
• Business stagnation resulting from cash flow issues at clientswith low credit ratings in the Americas region and therepercussions to emerging economies.

Data section

Prolonged impact of
COVID-19

Primary risk control measures

Risk scenario• Increased credit costs due to prolonged impact of COVID-19 on

Appendix

Risk event

Message from theGroup CEORisk governanceand our business plans• Assessment of capital adequacy

Preparation of scenarios common across the group

Integrated Report 2021

86

Foundations for our corporate value

Compliance
Compliance
As a leading Japanese financial services group with a global presence and a broad customer base, we remain
conscious at all times of the importance of our social responsibilities and duty to the public. We define compliance as
the strict observance of all laws and regulations and the pursuit of fair and honest business operations that conformto socially-accepted norms, and we view ongoing compliance as one of the basic principles of sound business
management. Each of our group companies maintains their own compliance structure in line with the basic policies
established by Mizuho Financial Group.

Compliance structure

The four core group companies also have individualcompliance departments overseen by the Head of theCompliance Group. These departments are responsible
for compliance planning and implementation and control
overall compliance management at each company.
At each organizational unit (such as branches anddepartments) within the four core group companies,
the head of the organizational unit is responsible for
guidance and implementation related to compliancematters, and the compliance officer or complianceadministrator at each organizational unit reviews thestatus of compliance.
Mizuho Financial Group monitors the status ofcompliance of the group through reports submitted
by our core group companies and adopts appropriate
responses as necessary. Compliance at subsidiaries ofour core group companies is monitored and managed bytheir respective parent company.

Compliance structure

Supervision/
audit

Mizuho Financial GroupManagement

The President & CEO of Mizuho Financial Group, Mizuho
Bank, Mizuho Trust & Banking, and Mizuho Securities
each generally oversee compliance matters for theirrespective company, and important matters concerningcompliance are discussed at the Compliance Committees
chaired by the head of the relevant Compliance Group.

Board of Directors

Audit Committee

President & Group CEO

Executive Management
Committee
Compliance Committee(Chairman: Head of the Compliance Group)Group Chief Compliance Officer(Department in charge: Compliance Department)

Every organizational unit
Head of each organizational
unit

Compliance officer/
compliance administrator

Core group companies (e.g. MHBK, MHTB, and MHSC)

Subsidiaries of the above group companies

Compliance practices
We have established the Mizuho Code of Conduct
which sets forth clear and concrete standards of ethicalbehavior. Furthermore, each of our group companies has
also prepared a compliance manual, which serves as apractical guidebook for rigorous compliance enforcement
and clarifies the laws and regulations that we mustobserve in our business operations and the compliancepractices we are required to follow. Mizuho ensures that
all executive officers and employees are fully acquainted
with both the Code of Conduct and the compliancemanual’s content through, for example, training uponjoining the company.

87

Mizuho Financial GroupWe monitor the status of compliance levels throughself-assessments by each department and monitoring
conducted by the compliance department of eachcompany. In addition, every fiscal year, each of our groupcompanies establishes a compliance program whichcontains concrete measures for compliance enforcement
such as compliance framework management, training,
and assessments. Progress on the compliance programis monitored every six months.

In order to prevent organized crime from influencing
the management of our clients and to avoid any
association with the harm caused by organized crime,
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 and therefore threaten
the rule of law, public order, and safety.
We have also formed an Anti-Organized Crime
Committee which includes external experts in industryspecific, in-depth discussions on this subject, in addition
to other initiatives we are implementing on a groupwide 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 compliancecommittees of Mizuho Financial Group, Mizuho Bank,
Mizuho Trust & Banking, and Mizuho Securities.
Furthermore, core group companies maintain centralized
departments or appoint an officer to manage antiorganized crime efforts and to maintain effective
frameworks, for example, by establishing a manual on
how to manage such issues and conducting training
sessions. 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 2020, Mizuho provided effective
training tailored to a broad range of roles within theorganization, from employees to senior management.
We conducted 14 training sessions in total, including
mandatory compliance training sessions for all
employees; role-specific training for executive officers,
general managers, compliance officers, and othersenior management members; and e-learning training
sessions on specific compliance topics.
In addition to training sessions and other programs
designed to promote compliance, we are also
dedicated to detecting potential compliance issues

at the earliest stage possible and taking appropriate
action. When we become aware of potential complianceissues, such matters must be reported immediately
to department and branch managers in accordancewith our compliance manual. Furthermore, each groupcompany has established a hotline which employees
can call in order to speak with someone within the
Compliance Division or an external law office orcompliance professional.
For matters related to inappropriate accounting,internal control on financial reporting, and auditing, aninternal control and auditing hotline, which connects
to an external law office, is available to receive reports
from both in and outside the company.

Internal reporting systems (Compliance hotline)

About Mizuho
Appendix

We have a robust internal reporting system in place, and are working to further increase its
effectiveness by establishing group-wide reporting channels outside the workplace that are available
in the evenings, on Saturdays and Sundays, and also by making such services available in foreign
languages. To ensure that employees at each group company are fully acquainted with these systems,
hotline numbers and other relevant information is included on posters within each workplace anddistributed to all employees on wallet-sized cards. In fiscal 2020, Mizuho Financial Group and our coregroup companies received a total of 176 reports through our hotlines from both inside and outside thegroup, 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 in accordance with the guidelines set by the Agency, andregistered to the Whistleblowing Compliance Management System (a Self-declaration System).

Message from theGroup CFO

Our stance towards organized crime

Our strategies forcreating value

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, we have devised AML and CFT policies andprocedures that conform to the laws and regulations ineach jurisdiction and we are also continually enhancing
our AML and CFT measures.

Foundations for our
corporate value

Financial crimes are becoming more diverse andsophisticated, and acts of terrorism continue to occur
around the world. In light of these trends, anti-money
laundering (AML) and combating the financing ofterrorism (CFT) are extremely important. Against thisbackdrop, the key challenge for financial institutions
is the strengthening of their AML measures and CFT
initiatives. As a financial services provider operating

Data section

Financial crime risk management

Message from theGroup CEO

ComplianceInternal control and audit hotline
Our audit hotline, which connects to an external law office, is available to receive reports from both in and outside thecompany in connection with concerns regarding accounting and financial reports.

Integrated Report 2021

88

Foundations for our corporate value

Compliance

Customer protection management
We give first priority to our customers, and we believe that earning their trust is the basis for ensuring sound management and therefore earning the trust of other stakeholders as well. With this in mind, a core part of our compliance is
to continuously seek to monitor and improve the operations of the group from the perspective of what is in the bestinterests of our customers in order to ensure that our operations are appropriate and to improve customer convenience. We manage customer protection uniformly throughout the group in order to achieve this objective.

Customer protection management structure

Supervision/
audit

Mizuho Financial Group

Board of Directors

Audit Committee

President & Group CEO

Executive Management
Committee
Compliance Committee(Chairman: Head of the Compliance Group)Management

At Mizuho, customer protection management refers to
the efforts we make to improve the protection of ourcustomers and improve customer convenience from thefollowing perspectives:
1. Ensuring the appropriateness and sufficiency of explanations provided to customers prior to conducting
transactions, purchasing products, etc. as well as theprovision of information (e.g. product explanations) tocustomers.
2. Ensuring the appropriateness and sufficiency of thehandling of customer inquiries, complaints, and othercommunications (customer service).
3. Ensuring the appropriateness of the management ofcustomer information (customer information management).
4. Ensuring the appropriateness of customer interaction
and the handling of customer information in cases
where group operations are outsourced (outsourcing
management).
5. Ensuring the appropriateness of the management of
measures to be taken in order to address conflicts ofinterest arising from transactions with customers (conflict of interest management).
Our President & Group CEO generally oversees the
management of customer protection, and important matters are discussed at Compliance Committee meetings(chaired by the Head of the Compliance Group). Further,
the Mizuho Financial Group divisions responsible foreach area of management described above also provide
centralized monitoring and implementation of our coregroup companies’ customer protection management.
Core group companies oversee customer protection
management at their own subsidiaries.

Officers responsible for the general management of customer protection(Department in charge: Compliance Department)

Divisions in charge

Customer information management

Explanation of products

Outsourcing management

Customer service management Conflict of interest management

Core group companies (e.g. MHBK, MHTB, and MHSC)

Subsidiaries of the above group companies

Information management

Customer service management

Advances in information technology have enabled
greater utilization of data. At the same time, many
countries have tightened legislation protecting personal
information. There has also been closer public scrutinyof the methods companies use to protect personal
information. Mizuho is aware of the vital importance ofmanaging information in a way that ensures appropriate
protection and use of information assets. We areconstantly working to strengthen our information
management practices. For example, we aim to ensurethat our security management measures and information
administration methods for information assets are clear
and straightforward. Also, we implement training andawareness-building exercises to ensure that all membersof our organization have a firm understanding regarding
the proper protection of information assets.

At Mizuho, we engage in business with a wide range ofcustomers, and we put a strong emphasis on responding
appropriately to feedback, complaints, or othercommunication from customers in addition to our efforts
to offer customers stronger protections and higher
convenience.
In the case of receiving a complaint or other criticalfeedback, we not only emphasize the importance of
responding quickly and politely, but also require reports
to be drawn up in order to monitor these situations.
Furthermore, we regard all customer feedback as animportant asset and work continuously to improve ouroperations and prevent the recurrence of issues with theaim of increasing customer satisfaction.
For more information on Mizuho’s customer protection
measures, please see our website:
https://www.mizuhogroup.com/who-we-are/internal/customer

89

Mizuho Financial GroupFoundations for our corporate value

Fiduciary duties**F iduciary duties is a general term for the broad range ofWe have released Policies Regarding Mizuho’s Fiduciary Duties as group-wide policies which ensure that through ourasset management-related businesses we offer products and services that are in the best interest of our customers
and that we continue to be our customers’ most trusted financial services partner and long-term partner. In addition,at the holding company and relevant group companies, we have established and made public specific action plans for
ensuring we are always aligned with customers’ best interests.
For more information on Policies Regarding Mizuho’s Fiduciary Duties, please see our website:
https://www.mizuhogroup.com/binaries/content/assets/pdf/mizuhoglobal/news/2017/03/20170330_2release_jp_1-1.pdf

With the objective of creating shared value with ourcustomers, we have established KPIs to confirm our levelof performance of our fiduciary duties, and we announce
them periodically along with the status of initiatives
under our Action Plan.

At the same time, by expanding our business base andestablishing a brand built on customer satisfaction andtrust, we aim to create shared value with our customers
that will also lead to medium- to long-term growth for
Mizuho, which will allow us to further enhance the levelof customer service we provide.
Creating shared value between customers and Mizuho
Fulfilling our fiduciary duties

Positive and trustworthy public image

Results

MizuhoCustomers

MizuhoProviding optimal financial products andservices to customers
Pursuing our customers’ best interests

Increase in financial assets over the medium to long term

Medium- to long-term growth

Creating
shared value
Enhancing customer satisfaction and trust

Expanding customer base andstrengthening our brand

Key Performance Indicators (KPIs)
Number of personnel with professional qualifications
Number of funds with a rating of 4 stars or higher
Number of companies involved in our engagement
activities
Number of publicly offered investment trusts indifferent balance ranges
Average balance per publicly offered investment trust
Total number of seminar attendees
Number of participants enrolled in financial education
coursesCustomer satisfaction surveys
Number of funds which have received fund awards
Survey of satisfaction among investment trust
companies alance of assets under management from investment products
BNumberof customers using our investment products
Ratio of customers receiving different percentage ranges ofreturns, including realized returns, for publicly offered investment
trustsAverage holding period for publicly offered investment trusts
Balance of funds in publicly offered and privately placed
investment trusts
Balance of funds invested in DC specialized funds and installmenttype NISA funds
Balance of pension trust assets
Balance of publicly offered investment trusts under administration

In addition to the Key Performance Indicators listed above, the following common KPIs have also been released.
Common KPIs Common KPIs (1) Ratio of customers receiving different percentage ranges of returns for 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

Foundations for our
corporate value

Through fulfilling our fiduciary duties, Mizuho aims toensure a high level of customer satisfaction and to earn
the trust of customers by increasing their financial assets
in the medium to long term.

Key Performance Indicators (KPIs)

Data section

Our commitment to fulfilling our fiduciary duties tocreate shared value between customers and Mizuho

About Mizuho

Mizuho’s Corporate Identity includes our central values—the Mizuho Values—starting with putting our customers first,
and these values are shared by everyone at Mizuho. As a team of financial professionals providing a broad range offinancial services, we are committed to providing the best, most appropriate solutions in response to our customers’
diverse needs.

Message from theGroup CFO

order to live up to the trust that is placed in them by
their customers.

Our strategies forcreating value

to fulfill when engaging in certain business activities in

Message from theGroup CEOroles and responsibilities that fiduciaries are expected

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 June 2018.

Mizuho Financial Group, Mizuho Bank, Mizuho
Trust & Banking, and Mizuho Securities, as partof our efforts to obtain third-party objective
evaluations of our initiatives for our fiduciary
duties, obtains assessments from Rating &Investment Information (R&I) under their
Customer-Oriented Investment Trust Sales
Company Evaluation.

Appendix

Earned S+ score in R&I Customer-Oriented Investment Trust Sales Company Evaluation
We received the latest results in December 2020.
All four companies earned an industry-first S+
score, placing them in the top tier of companies
in the industry.

The R&I Customer-Oriented Investment Trust Sales Company Evaluation ("this evaluation") represents R&I’s opinion on the "customer-oriented business operations" initiatives of sales companies engaged in theinvestment 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 completeness of the information, and do not recommend the purchase, sale or holding of specific products orguarantee 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 2021

90

Foundations for our corporate value

Compliance with international financial regulations

Basel standards

Globaldevelopments

The Basel standards, a unified international regulatory framework for ensuring the soundness of banking institutions,were first created in 1988 (now referred to as Basel I). As the financial services industry and world affairs havedeveloped, steps have been taken to steadily enhance this framework. Formulated in 2010, Basel III is a framework thattightened capital requirements along with introducing liquidity requirements to address issues that came to light inthe 2008 global financial crisis. Regulatory reforms following the financial crisis were largely completed in 2017 (BaselIII finalization) with reforms aimed at reducing discrepancies among banks regarding the calculation of risk-weighted
assets (RWA, which is the denominator of the capital ratio). The Group of Central Bank Governors and Heads ofSupervision (GHOS) agreed to postpone the initial schedule for implementing Basel III finalization by one year due tothe COVID-19 outbreak, with this being phased in between 2023 and 2028.

1982 Latin American debt crisis

Increase in trading activity

1988

1996

• I ntroduction of the capital ratio arket risk incorporated into•M

Basel I

Basel I
RWA calculation

Increasing diversity andcomplexity of financial systems
More sophisticated risk
management systems

2008 Global Financial Crisis

2004
Basel II2010

Basel 2.5

• A llowing the use of banks’internal credit ratings in RWA
calculation

 perational risk incorporated•O
into RWA calculation

2009

2017

2019

Basel III finalization• T ightening of requirements• R eview and revision of RWA calculation

regarding capital charges forsecuritized products and market
risk

methods• Introduction of output floor (establishmentof a floor for RWA calculated using internal
models)Basel III• S trengthening qualitative andCompletion of remaining Basel III tasks

quantitative requirements for capital(numerator of the capital ratio)• Introduction of leverage ratio andliquidity requirements• F inalization of minimum capital requirements
for market risk

Principal requirements under Basel III and state of compliance
As a Global Systemically Important Bank (G-SIB), Mizuho
Financial Group must meet some regulatory standards
at a higher level. We maintain full compliance with all therequirements in the standards and, going forward, we
will steadily accumulate capital and control our balance
sheet to ensure that we can satisfy any new requirementsthat are introduced.

Capital ratio
Leverage ratio
Liquidity
coverage ratio
Net stable funding ratio

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, the Financial Stability Board andthe Basel Committee on Banking Supervision, which
are responsible for developing international financial
regulatory standards, are turning their attention to newareas. Specifically, they have shifted their focus fromdeveloping new regulatory standards to consistent
implementation of regulations in individual countries
and evaluating the impact of regulatory reforms (e.g., arethey having the intended effect without compromising
regulatory resilience).
In addition, the environment that financial institutions
operate in has reached a critical turning point, including
rapidly accelerating digitalization and increasing societal
interest in sustainability. There is growing attention
to the opportunities and risks presented to banks and91

Mizuho Financial Groupfinancial systems by new trends. Aside from fintech,these trends also encompass climate change-related
issues such as stricter approaches to responsible
financing and stronger risk management. This has led to
an uptick in international discussions about these issues.
For example, various international bodies, foremost
among them the Financial Stability Board and the BaselCommittee on Banking Supervision, have been looking
into responses to climate-related financial risk (the riskthat climate change could threaten the stability of thefinancial system by causing deterioration in the assets offinancial institutions, associated reductions of capital, andother consequences).
To address these various risks, we will work closely withgovernment, academia, and industry, while also holding
proactive internal discussions.

Foundations for our corporate value

Our stakeholders
We communicate with our broad base of stakeholders using a wide range of communication tools and channels andaim to reflect their opinions and ideas into our corporate activities.

Suppliers/
competitors

Regional/local
communities

General Meeting of Shareholders, investor
briefings
P31

Employees

Various briefings and othercommunications, employee opinion
surveys 
P94

Regional/local
communities

Social contribution activities, support for
financial education
P95

Suppliers/
competitors

Purchasing activities and outsourcing
contracts

Government
authorities

Policy recommendations, participation in industry
groups, appropriate responses to supervisory authorities

A closer look at our communication with customers

Data section

In our Vision, we at Mizuho have adopted a goal of being our customers’ best financial services provider and we have
put a number of initiatives in place in order to achieve this objective. Using a range of communication channels, we
actively stay abreast of the constantly changing needs of our customers and strive to improve the level of services that
we can offer.

Customers

Providing attractive products
and services
Providing recommendations andinformation promptly
Consulting services which draw
on our advanced expertiseEnhancement of our solutions
capabilities

Customer feedback systems
Identification of each customer’s
needs and expectations

Customer feedback cards
Call centers
Customer satisfaction survey

Group companies

Appendix

Employees

Shareholders

Message from theGroup CFO

Government
authorities

Shareholders

Customers

Our strategies forcreating value

Customers

Principal communication channels

Customer feedback cards, customer satisfaction
surveys, call centers, and our website customer
feedback forms for gathering opinions or complaints
Dedicated toll-free number
P93

Foundations for our
corporate value

Stakeholders

About Mizuho

In addition to articulating our commitment to maintain an ethical stance towards our stakeholders within the Mizuho
Code of Conduct, we aim to communicate with our stakeholders proactively and we strive to ensure that our corporate
activities are aligned with social expectations as well as fair and transparent.

Message from theGroup CEO

Stakeholder communication

Mizuho Financial Group (holding company)
Increase customer satisfaction (CS) awareness throughout the group
Integrated Report 2021

92

Foundations for our corporate value

Systems to capture customer feedback
Customer feedback cards

Customer satisfaction surveys

Mizuho Bank, Mizuho Trust & Banking, and Mizuho
Securities have made customer feedback cards available
in the lobby areas of retail branches in order to gather
customer opinions and requests.

Call centers

Mizuho Bank, Mizuho Trust & Banking, and Mizuho
Securities regularly conduct customer satisfaction
surveys, the results of which are used to improve groupproducts and services.

Website feedback forms

Our call centers are available for responding to customer
opinions and requests and data collected from thesecenters is a valuable resource.

The feedback forms available on our website are anothermethod we use to field comments and requests directed
at Mizuho Bank, Mizuho Trust & Banking, and Mizuho
Securities.

Dedicated toll-free number
Mizuho Bank, Mizuho Trust & Banking, and Mizuho
Securities have established a dedicated toll-free line togather customer opinions and requests.

Reflecting customer feedback into
our corporate activities
At Mizuho Bank, we draw on the opinions
expressed by customers in discussions
held at branches and management levelmeetings, including those of the Executive
Management Committee at Head Office.

Customer feedback
For matters thatcannot be addressed
immediately, we
devise and implement
improvement plans on
a group-wide basis.

We respond immediately
for matters that can behandled at the branchlevel.

Customer opinions, requests,
complaints, and other feedback
are received at our branches or
via other channels such as ourcall centers and our website.

Branches
Head Office: Executive Management Committee and other venues

93

Mizuho Financial GroupInitiatives to raise quality and quantity of communication
Executive management, led by the Group CEO, communicate with employees in messages and open
management meetings delivered through a range of channels, among which are briefings, videos, and emails. In
addition to this communication, management and employees have the opportunity to engage in direct dialogue
with each other in town hall meetings and other venues. Such dialogue enables all employees to deepen theirunderstanding of our Corporate Identity and 5-Year Business Plan and to think and act on their own initiative.
Our other initiatives for communication between management and employees include the posting function on
Mizuho Web (our internal group website for employees), the annual staff survey of group employees, and ad hoc
quick pulse surveys.
Briefings for employees

Briefing for employees

Posting function on Mizuho Web

Video messages

Data section

Executive management shares timely information with employees through message videos.

Foundations for our
corporate value

Employees are also able to submit their comments tomanagement through the posting function on Mizuho Web after
the briefing.

Our strategies forcreating value

In addition to the quarterly presentation of financial results toemployees, we also hold briefings for employees as needed.
In these briefings, employees around the world hear frommanagement about the latest developments and can ask
questions of management directly, engaging in a lively exchange.

About Mizuho

We are endeavoring to substantially raise the quality and quantity of the internal communications within our group aspart of our efforts to build reciprocal, horizontal relationships between our management, Head Office, and frontlines
and foster a corporate culture in which each employee acts independently and proactively.

Message from theGroup CFO

A closer look at our internal communications

Message from theGroup CEO

Stakeholder communication

Direct dialogue between the Group CEO and employees

Appendix

As part of Mizuho Diversity & Inclusion Month (see page 68), we held an event in which
the Group CEO and other employees spoke with each other in a direct dialogue. Morethan 3,000 employees worldwide attended, participating in reciprocal communication
on topics such as new work styles and business transformation.

Integrated Report 2021

94

Foundations for our corporate value

Stakeholder communication

A closer look at our communication with local communities
Members of our organization play an active role in contributing to the development of local communities beyond ourcontribution as a business. Giving back to the community improves members’ social awareness and imbues themwith a sense of pride in the Mizuho group that changes how they approach their duties and their sense of purpose,and this ultimately contributes to Mizuho’s sustainable and stable development.

Financial and economic education initiatives
Work experience & school visits

Number of participants in Mizuho’s financial and economic

As Japan’s population has aged and cashless payments havebecome more common, financial crime such as fraudulent invoicing
and transactions have also been on the rise. There is now an evengreater need for people to receive financial and economic education
so that they can understand the financial system, acquire correctknowledge as consumers, and form their own sense of financial
literacy and responsibility.
We apply our practical knowledge and insight as a financial services
group to support financial and economic education both in primary,secondary, and higher education and in continuing educationfor employees of municipal governments and corporations andmembers of the general public.

education programs(Persons)

20,00015,00018,66015,147

16,17812,859
9,705

10,0005,000

0FY2016FY2017FY2018FY2019FY2020Due to the impact of the COVID-19 pandemic, we were not able tohold as many sessions in fiscal 2020 and the number of participants
declined compared to the previous year. However, in response to
the changing situation, we endeavored to set up online courses andexpand our online educational tools.

Community & social contribution activities
 ocial contribution activities
S
in local communities
At our offices worldwide,
employees and theirfamilies undertakevolunteer activities in local
communities.

 ssistance for naturalA
disaster victims
We provide donations andemployees participate
in recovery efforts asvolunteers to rebuild thelives of victims of natural
disasters inside and outside
Japan.

COVID-19-related initiatives

95

Establishment of the J-Coin Fund
Combining a ¥500 million contribution from Mizuho withdonations from a wide range of donors including regional
financial institutions involved with J-Coin and J-Coin users,
we established the J-Coin Fund as a framework to provide
far-reaching support to those that need it. Over three calls
for applications, the fund has supported 205 groups across
43 prefectures in Japan.

Mizuho Private Placement Bonds responding to COVID-19
Through these private placement bonds, we donated¥200,000 to medical-related institutions for each private
placement bond issuance as a way of contributing to themaintenance and expansion of the medical system preventing infections. The initiative produced a total of 200
private placement bond issuances and ¥40 million in contributions to medical-related institutions.

Project supporting new lifestyles via financial services
For each customer to use certain applicable services andapply for this project, Mizuho Bank would donate ¥55 toan organization working in a field the customer chose tosupport.

International
We donated to and volunteered for institutions and organizations outside of Japan to support their efforts, including
those to halt the spread of COVID-19.

Mizuho Financial GroupData section

Eleven-year major financial data
(FY2010-2020)�������������� P. 97
Review and analysis
for fiscal 2020�������������� P. 99
Five-year non-financial data���� P. 103
ESG evaluation, Participation ininternational initiatives������� P. 104
Mizuho’s global network������ P. 105
Corporate profile����������� P. 106

Integrated Report 2021

96

Data section

Eleven-year major financial data (FY2010-2020)
Summary of consolidated performance
FY2010FY2011FY2012FY2013

FY2014

Consolidated gross profits

2,025.3

2,003.0

2,171.7

2,035.2

2,247.7

Net interest income

1,109.4

1,088.3

1,075.8

1,108.3

1,129.4

Fiduciary income

52.6

49.3

49.0

48.5

52.0

Credit costs for trust accounts

—

—

—

—

—

Net fee and commission income

458.8

458.9

507.3

560.7

593.3

Net trading income

243.9

150.3

215.0

187.4

262.9

Net other operating income

163.6

256.4

324.8

126.7

209.3

General and administrative expenses(1,277.8)(1,283.8)(1,244.6)(1,258.2)(1,351.6)

Consolidated net business profits*

741.7

719.1

912.1

744.2

876.9

Credit-related costs(16.6)

27.7(111.8)

112.8

(4.6)

Aggregate figures for the 2 banks

16.0

24.7

(114.1)

116.6

(7.8)

Net gains (losses) related to stocks(70.5)(38.1)(82.9)

77.0

131.9

Net gains (losses) on sales of stocks

25.7

15.6

46.6

81.5

143.7

Losses on impairment (devaluation) of stocks(94.4)(49.3)(125.8)

(5.3)

(5.3)

Equity in income from investment in affiliates

(6.1)

2.6

(11.1)

15.4

15.0

Other
Ordinary profits(6.1)(62.9)

29.2

5.1(27.5)

588.4

648.5

750.3

987.5

1,010.8

Net extraordinary gains (losses)

46.9

67.8

(32.5)(2.2)(20.2)

Income taxes – current(18.3)(55.3)(50.4)(137.0)(260.2)– deferred(120.1)(97.4)(7.4)(77.9)(44.7)

496.9

563.6

659.9

770.3

685.6

ProfitProfit attributable to non-controlling interests(83.7)(79.1)(99.4)(81.9)(73.7)

Profit attributable to owners of parent

413.2

484.5

560.5

688.4

611.9

* 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
FY2010Assets

FY2011FY2012FY2013

FY2014

160,812.0

165,360.5

177,411.0

175,822.8

189,684.7

Loans and bills discounted

62,777.7

63,800.5

67,536.8

69,301.4

73,415.1

Securities

44,782.0

51,392.8

53,472.3

43,997.5

43,278.7

Liabilities

154,188.0

158,491.2

169,674.8

167,518.3

179,884.2

Deposits

79,233.9

78,811.9

84,241.9

89,055.5

97,757.5

Negotiable certificates of deposit

9,650.2

11,824.7

15,326.7

12,755.7

15,694.9

6,623.9

6,869.2

7,736.2

8,304.5

9,800.5

Total shareholders’ equity

4,248.2

4,762.7

5,174.6

5,676.2

6,131.1

Retained earnings

1,132.3

1,405.0

1,814.7

2,315.6

2,769.3

80.9

146.6

752.5

781.0

2,029.9

2,292.1

1,957.6

1,806.4

1,844.0

1,635.5

Net assets

Total accumulated other comprehensive income
Non-controlling interests

Financial indicators
FY2010FY2011FY2012FY2013

FY2014

Common Equity Tier 1 capital ratio (consolidated)

／

／

8.16

8.80

9.43

Tier 1 capital ratio (consolidated)

／

／

11.03

11.35

11.50

15.30

15.50

／

／

／

／

／

14.19

14.36

14.58

Net assets per share (Yen)*

177.53187.19229.70253.25322.86

Profit attributable to owners of parent per share (Yen)*

20.47

20.62

22.96

28.18

24.91

Net return on equity (consolidated)

11.78

11.36

10.99

11.65

8.60

Capital adequacy ratio (BIS standard) (consolidated)
Total capital ratio (consolidated)* 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 shareseffective 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.

97

Mizuho Financial GroupFY2019

FY20202,221.6

2,092.7

1,915.3

1,812.7

2,062.2

2,198.6

1,003.6

867.8

807.3

762.4

733.5

905.6

53.4

50.6

55.4

55.1

58.5

55.1

—

—

—

—

—

—

607.5

603.5

614.3

610.4

619.2

687.1

310.5

325.3

275.7

297.3

391.2

388.1

246.4

245.4

162.4

87.3

259.5

162.5

(1,349.5)(1,467.2)(1,488.9)(1,430.8)(1,378.3)(1,414.6)

852.8

663.4

457.8

393.3

661.9

797.7

(30.4)(47.5)

156.3(19.5)(171.7)(204.9)(26.7)(49.3)

153.2(22.7)(173.7)(201.5)

205.6

242.1

272.0

274.8

137.1

12.1

225.3

261.1

288.3

305.2

153.7

56.8

(10.3)

(4.8)

(5.1)

(5.7)

(41.6)

(5.8)

24.2

18.8

21.4

51.2

30.3

19.9

(74.0)(101.5)(93.7)(74.2)(41.7)(74.8)

997.5

737.5

782.4

614.1

637.8

536.3

10.7

46.6

17.5

(497.8)(19.1)

115.8(213.2)(196.5)(190.1)(161.3)(150.0)(165.6)(69.2)

58.8

(1.4)

163.8

(11.4)

(9.0)

725.7

646.4

608.3

118.7

457.2

477.3

(54.7)(42.9)(31.7)(22.1)

(8.6)

(6.3)

670.9

603.5

576.5

96.5

448.5

471.0

(¥ billion)
FY2016FY2017FY2018FY2019FY2020

193,458.5

200,508.6

205,028.3

200,792.2

214,659.0

225,586.2

73,708.8

78,337.7

79,421.4

78,456.9

83,468.1

83,704.6

39,505.9

32,353.1

34,183.0

29,774.4

34,907.2

43,697.2

184,105.3

191,235.2

195,207.0

191,598.1

205,995.2

216,224.0

105,629.0

120,045.2

125,081.2

124,311.0

131,189.6

133,312.4

11,827.5

10,631.2

11,382.5

13,338.5

13,282.5

17,192.5

9,353.2

9,273.3

9,821.2

9,194.0

8,663.8

9,362.2

6,559.9

7,001.2

7,388.3

7,303.0

7,561.0

7,807.2

3,197.6

3,615.4

4,002.8

3,915.5

4,174.1

4,421.6

1,607.8

1,520.9

1,677.5

1,445.7

992.9

1,449.0

1,182.6

749.3

754.2

444.5

109.6

105.7

Data section

FY2015

About Mizuho

FY2018Message from theGroup CFO

FY2017

Our strategies forcreating value

FY2016

Foundations for our
corporate value(¥ billion)
FY2015

Message from theGroup CEO

Eleven-year major financial data(%)
FY2016FY2017FY2018FY2019FY2020

10.50

11.34

12.49

12.76

11.65

11.63

12.64

13.30

15.44

15.94

14.52

14.37

／

／

／

／

／

／

15.41

16.28

18.24

18.85

17.25

16.87

322.46335.96357.41345.003,372.96

3,650.87

26.94

23.86

22.72

3.80

176.87185.75

8.37

7.27

6.55

1.08

5.18

5.29

Integrated Report 2021

Appendix

FY201598

Data section

Review and analysis for fiscal 2020
Summary of consolidated performance
Historical data(¥ billion)
FY2009FY2010FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020Consolidated gross profits

1,996.6

2,025.3

2,003.0

2,171.7

2,035.2

2,247.7

2,221.6

2,092.7

1,915.3

1,812.7

2,062.2

2,198.6

Consolidated net business profits1

702.6

741.7

719.1

912.1

744.2

876.9

852.8

663.4

457.8

393.3

661.9

797.7

603.5

576.5

448.5

471.0

Net income (losses)2

413.2

560.5

484.5

688.4

611.9

670.9

239.4
96.5

1. Consolidated gross profits – G&A expenses (excluding non-recurring losses) + Equity in income from investments in affiliates and certain other consolidation adjustments
2. Profit attributable to owners of parent from FY2015 onward

Consolidated(¥ billion)
FY2020FY2019Change from
FY2019Consolidated gross profits

2,198.6

2,062.2

136.4

General and administrative expenses(1,414.6)(1,378.3)(36.2)

Expenses related to portfolio problems1(209.9)(183.3)(26.6)

Gains on reversal of reserves forpossible losses on loans and others

4.9

11.6

(6.6)

Net gains (losses) related to stocks

12.1

137.1

(125.0)Equity in income from investments in affiliates

19.9

30.3

(10.4)

Other(74.8)(41.7)(33.0)

Ordinary profits

536.3

637.8

(101.5)Net extraordinary gains (losses)

115.8(19.1)

135.0

Income before income taxes

652.1

618.7

33.4

Income taxes(174.7)(161.4)(13.2)

Profit

477.3

457.2

20.1

Profit attributable to non-controlling interests

(6.3)

(8.6)

2.2

Profit attributable to owners of parent

471.0

448.5

22.4

Credit-related costs(204.9)(171.7)(33.2)

Consolidated net business profits2

797.7

661.9

135.7

1. Including reversal of [provision for] general reserve for losses on loans
2. Consolidated gross profits G&A expenses (excluding non-recurring losses) +Equity in income from investments in affiliates and certain other consolidation
adjustments izuho Bank + Mizuho Trust & Banking*M(Aggregate figures on a non-consolidated basis)
FY2020FY2019Gross profits

1,477.3

1,437.5

39.7

G&A expenses(excluding non-recurring losses)(897.0)(922.2)

25.1

Net business profits

580.2

515.2

64.9

Credit-related costs(201.5)(173.7)(27.7)Net gains (losses) related to stocks(12.3)

125.4(137.8)

Ordinary profits

321.9

480.4

(158.4)

Net income

311.7

343.1

(31.4)*Abbreviated as MHBK + MHTB

99(¥ billion)
Change from
FY2019Mizuho Financial Group

Consolidated net business profits
We recorded consolidated gross profits of ¥2,198.6 billion forfiscal 2020, an increase of ¥136.4 billion from the previous
fiscal year due to factors including steady performance inboth customer and markets divisions.
General and administrative expenses increased by ¥36.2
billion on a year-on-year basis to ¥1,414.6 billion, despite
decreased expenses from steady progress on structuralreforms, due to factors including increased amortization
expenses in unrecognized actuarial differences.
As a result, consolidated net business profits increased by¥135.7 billion on a year-on-year basis to ¥797.7 billion.

Profit attributable to owners of parent
Credit-related costs increased by ¥33.2 billion on a year-onyear basis to ¥204.9 billion due to recording reserves forpossible losses on loans from a forward-looking perspective,in light of the prolonged impacts of COVID-19.
Net gains (losses) related to stocks decreased by ¥125.0 billion
on a year-on-year basis to ¥12.1 billion due to improvementsin the book value of bear funds.
As a result, ordinary profits decreased by ¥101.5 billion on a
year-on-year basis to ¥536.3 billion.
As for net extraordinary gains (losses), gains increasedby ¥135.0 billion on a year-on-year basis to ¥115.8 billion,
reflecting the recording of extraordinary gains on cancellationof employee retirement benefit trust assets and gains inconnection with the revision of the pension plan.
Income taxes increased by ¥13.2 billion on a year-on-yearbasis to ¥174.7 billion.
As a result, profit attributable to owners of parent increasedby ¥22.4 billion on a year-on-year basis to ¥471.0 billion.

Summary of consolidated balance sheet

225,586.2

214,659.0

10,927.1

43,697.2

34,907.2

8,790.0

Japanese government bonds

21,400.5

13,081.8

8,318.6

Japanese local government
bonds

463.5

272.5

190.9

Japanese corporate bonds
and short-term bonds

2,760.9

2,828.0(67.1)

Japanese stocks

3,570.1

2,796.1

774.0

Other

AssetsSecurities

15,502.1

15,928.6(426.5)Loans and bills discounted

83,704.6

83,468.1

236.4

Loans
(MHBK + MHTB, banking
account + trust account)

85,984.5

84,873.2

1,111.3

62,044.2

58,947.6

3,096.6

Loans to SMEs andindividual customers

35,601.0

33,892.4

1,708.6(Housing loans forowner’s residential
housing)

8,125.6

8,463.4(337.8)23,940.2

25,925.5(1,985.2)

Liabilities

216,224.0

205,995.2

10,228.7

Deposits

133,312.4

131,189.6

2,122.7

Domestic total

Overseas total

Domestic deposits(MHBK + MHTB)

111,043.3

106,876.1

4,167.2

Individual deposits

47,321.6

45,018.6

2,303.0

Corporate deposits

54,592.7

53,344.5

1,248.2

Financial/government
institutions

9,128.8

8,513.0

615.8

Negotiable certificates of deposit

17,192.5

13,282.5

3,910.0

9,362.2

8,663.8

698.3

Net assets

7,807.2

7,561.0

246.2

Common stock

2,256.7

2,256.7—

Capital surplus

1,135.9

1,136.4(0.5)

Retained earnings

4,421.6

4,174.1

247.4

(7.1)

(6.4)

(0.7)

Total shareholders’ equity

Treasury stock
Total accumulated othercomprehensive income

1,449.0

992.9

456.0

Net unrealized gains (losses) on other securities

1,132.4

823.0

309.3

Deferred gains or losses
on hedges

31.6

72.0

(40.4)

Revaluation reserve for land

136.3

136.6

(0.2)

Foreign currency translation adjustments(139.5)(133.1)(6.3)

Remeasurements ofdefined benefit plans

288.0

94.3

193.7

Stock acquisition rights

0.1

0.2

(0.0)

Non-controlling interests

105.7

109.6

(3.8)

Securities were ¥43,697.2 billion, increasing by ¥8,790.0 billion
from the end of the previous fiscal year due to an increase in
short-term Japanese government bonds and other factors.
JGB balance (MHBK + MHTB)1
Medium- and long-term bonds2(Acquisition cost basis)

Floating-rate notesTreasury discount bills(¥ trillion)

20.9
13.3

13.3

12.6

11.8

3.4
0.6

4.6
0.3

5.4

9.2

0.6
5.8

Mar. 31, 2018

Mar. 31, 2019

7.6

7.6

Mar. 31, 2020

Mar. 31, 2021

2.4 years

1.1 years

Average remaining period3
2.5 years

2.1 years

1. Other securities which have readily determinable fair values
2. Including bonds with remaining period of one year or less
3. Excluding floating-rate notes

Japanese stocks (consolidated)* (¥ billion)

(Acquisition cost basis)

1,564.8
1,419.8
1,272.0
1,167.7

Mar. 31, 2018

Mar. 31, 2019

Message from theGroup CFO

Change fromMarch 31,2020

Our strategies forcreating value

March 31,2020

Mar. 31, 2020

Foundations for our
corporate value

March 31,
2021

Securities

Mar. 31, 2021

*Other securities which have readily determinable fair values

Data section(¥ billion)

Appendix

Consolidated

About Mizuho

Message from theGroup CEO

Review and analysis for fiscal 2020

Note: Some of the domestic deposit balances that were previously classified as“Corporate deposits” have been reclassified as “Financial/government
institutions”.

Integrated Report 2021

100

Data section

Loans

Total net assets

The total of loans was ¥83,704.6 billion, an increase of ¥236.4
billion from fiscal 2019, caused primarily by the increases inloans for middle-market firms and small- and medium-sizedenterprises.

Net assets amounted to ¥9,362.2 billion, increasing by ¥698.3
billion from fiscal 2019 due to an increase in net unrealized
gains (losses) on other securities, and other factors.

The combined total of loans for MHBK and MHTB was¥85,984.5 billion, an increase of ¥1,111.3 billion. For our loanbalance in Japan, while the balance of personal loans andJapanese government loans decreased, that of large, medium,and small businesses increased, resulting in an overall increaseof ¥3,096.6 billion (including a decrease of ¥219.8 billion in loans
to the Japanese government and other such obligors). Ourloan balance outside Japan (including loans booked offshore)decreased by ¥1,985.2 billion, due to factors including adecrease in loans across multiple regions, mainly the Americas.

Loan balance (MHBK + MHTB, banking book + trust banking book)
Loan balance in Japan

Loan balance outside Japan

19.4

55.7

Mar. 31,
2018

25.9

57.4

58.9

Mar. 31,
2020

0.82

0.66

0.62

0.69

0.5

0.5

0.6

Mar. 31,2018

Mar. 31,2019

Mar. 31,2020

0.7

Mar. 31,2021

Mar. 31,2021

 on-performing loans based on the Financial
N
Reconstruction Act (MHBK + MHTB, banking book + trust
banking book)(¥ billion)

The combined deposits in Japan of MHBK and MHTB
increased by ¥4,167.2 billion from fiscal 2019 due to factors
such as an increase in individual deposits.
D eposits in Japan (MHBK + MHTB)
Corporations

Financial/government institutions(¥ trillion)

111.0
9.1

7.4

101.6
8.1

106.8
8.5

46.4

49.5

53.3

54.5

42.8

43.9

45.0

47.3

Mar. 31,2018

Mar. 31,2019

Mar. 31,2020

Mar. 31,2021

Note: Some of the domestic deposit balances that were previously classified as“Corporate deposits” have been reclassified as “Financial/government
institutions”.

101

Claims for special attention (¥ trillion)
Claims with collection risk (¥ trillion)
Claims against bankrupt and substantially bankrupt obligors (¥ trillion)
NPL ratio (%)

62.0

The total deposits were ¥133,312.4 billion, an increase of¥2,122.7 billion from fiscal 2019, mainly attributable to anincrease in individual deposits in Japan.

96.7

Act (MHBK + MHTB, banking book + trust banking book)

23.9

Deposits

Individuals

Non-performing loans based on the Financial Reconstruction

85.9

22.6

Mar. 31,2019

The combined NPL balance of MHBK and MHTB was ¥792.7
billion, an increase of ¥131.7 billion from fiscal 2019, and the
NPL ratio was 0.82%. Both the NPL balance and ratio remain
stable at a low level.

(¥ trillion)

84.8

80.0

75.2

Non-performing loans (NPLs)

Mizuho Financial Group

March 31,2021

March 31,2020

Change fromMarch 31,2020

Claims against bankrupt andsubstantially bankrupt obligors

48.7

51.0

(2.3)

Claims with collection risk

411.0

386.5

24.5

Claims for special attention

333.0

223.4

109.5

Subtotal

792.7

661.0

131.7

Normal claims

95,144.3

93,890.9

1,253.4

Total

95,937.1

94,551.9

1,385.1

NPL ratio

0.82%

0.69%

0.12%

Risk-weighted assets were ¥67,481.9 billion, an increase of¥5,340.7 billion from fiscal 2019, due to an increase in credit
risk-related assets and other factors.

BIS capital ratio
The consolidated total capital ratio, consolidated Tier 1 capitalratio, and consolidated Common Equity Tier 1 capital ratio asof the end of March 2021 were 16.87%, 14.37%, and 11.63%,
respectively.

BIS capital ratio (consolidated)(¥ billion)

March 31,2021

March 31,2020

Change fromMarch 31,
2020

Common Equity Tier 1 capital (CET1)

7,849.9

7,244.7

605.1

Capital stock, surplus, andretained earnings

7,807.0

7,560.7

246.3

Additional Tier 1 capital

1,851.9

1,779.6

72.3

Additional Tier 1 capital
instruments

1,873.0

1,805.0

68.0

1,683.4

1,697.8(14.4)

1,505.8

1,346.0

159.7

Tier 2 capital
Tier 2 capital instruments
Eligible Tier 2 capital
instruments subject tophase-out arrangements

168.7

337.4

(168.7)

Total capital

11,385.3

10,722.2

663.1

Risk-weighted assets

67,481.9

62,141.2

5,340.7

Credit risk assets

61,960.7

56,308.2

5,652.4

Market risk equivalent assets

2,328.6

2,476.9(148.2)

Operational risk equivalent
assets3,192.5

3,355.9(163.4)

Total capital ratio (consolidated)

16.87%

17.25%(0.38%)

Tier 1 capital ratio (consolidated)

14.37%

14.52%(0.15%)

Common Equity Tier 1 capitalratio (consolidated)

11.63%

11.65%(0.02%)

Based on this policy, annual cash dividends for fiscal 2020
were ¥75 per share of common stock (both interim and yearend cash dividends were ¥37.5 per share of common stock,with the interim dividends reflecting the share consolidation(one post-consolidation share per ten pre-consolidation
shares) implemented on October 1, 2020), which wassubstantially the same amount as the previous fiscal year.
In fiscal 2020, our profit attributable to owners of parent cameto ¥471.0 billion, outperforming the earnings estimate weannounced at the beginning of the fiscal year. Our Common
Equity Tier 1 capital ratio (Basel III finalization fully effective basis,
excluding net unrealized gains on other securities) was 9.1%,
reaching the lower end of the 9 – 10% range, which is the target
set in our 5-Year Business Plan. In making this decision on annual
cash dividends, the Board of Directors took into account ourbusiness environment comprehensively, including our businessresults, our capital adequacy, and domestic and international
regulatory trends, including the Basel regulatory framework.
Annual cash dividend per share of common stock (¥)
75.0

75.0

75.0

75.0

FY2017FY2018FY2019FY2020

197%

42%

40%

Dividend payout ratio
33%

We implemented the share consolidation of the shares of common stock on thebasis of one post-consolidation share per ten pre-consolidation shares effective asof October 1, 2020.
The amounts for annual cash dividends per share of common stock from
FY2017 through FY2019 reflect the effect of the share consolidation. If the shareconsolidation is not taken into consideration, the amount would be ¥7.5 in each year.

In light of our progress on accumulating capital, we have revised
our capital management policy for fiscal 2021 onwards. Our new
approach will be to pursue the optimum balance between
capital adequacy, growth investment, and enhancement ofshareholder returns. Our shareholder return policy is to haveprogressive dividends as our principal approach while executing
flexible and intermittent share buybacks. For dividends, we will
decide based on the steady growth of our stable earnings base,taking a 40% dividend payout ratio as a guide into consideration.
For share buybacks, we will consider our business results andcapital adequacy, our stock price, and opportunities for growthinvestment in determining the execution.
Integrated Report 2021

Data section

Risk-weighted assets

AppendixCommon Equity Tier 1 capital was ¥7,849.9 billion, an increaseof ¥605.1 billion from fiscal 2019.

About Mizuho

Our approach to capital management in fiscal 2020 was toimplement disciplined capital management by pursuing
the optimum balance between strengthening our stable
capital base and steady returns to shareholders. In line withthis approach, we set forth our shareholder return policy ofmaintaining the current level of dividends for the time being
while aiming to strengthen our capital base further to enhance
returns to shareholders at an early stage.

Message from theGroup CFOBIS capital

Our strategies forcreating value

Dividend policy

Foundations for our
corporate value

BIS capital

Message from theGroup CEO

Review and analysis for fiscal 2020102

Data section

Non-financial data/ESG-related information
Five-year non-financial data
Corporate governanceDirectors

Number of directors
Percentage of outside directors
Percentage of director positions filled by women
Average attendance rate for Board of
Directors meetings1

Percentage of outside directors (June 2021)

June 2017

June 2018

June 2019

June 2020

June 2021

13
46%
15%

14
43%
14%

14
43%
14%

13
46%
8%

13
46%
8%

98%

100%

100%

100%

-

Nominating Committee

Compensation Committee

Audit Committee

100%

100%

75%

1. Fiscal year basis

TalentEmployees1
Training

Diversity &Inclusion

Number of employees
Average employee age
Average employee length of service
Voluntary employee turnover rate3
Total number of participants4
Percentage of employees who arefemale1
Percentage of management positions
filled by women (general manager andmanager equivalent)5Percentage of management positions
filled by employees hired outside Japan6
Percentage of women in new graduates
hired7
Percentage of paid annual leave takenby employees8
Percentage of eligible male employees
who take childcare leave8
Percentage of employees who areindividuals with disabilities9

FY2016FY2017FY2018FY2019FY202059,61938
14
2.5%
148,951

60,34639
14
2.7%
139,504

57,54539
14
3.1%
128,863

55,17440
15
2.9%
146,538

53,01439
15
3.1%
208,274

52%

52%

52%

52%

52%

10%

12%

14%

15%

16%

41%

44%

44%

64%

64%

33%

36%

32%

36%

37%

68%

73%

75%

77%

70%

23%

79%

100%

93%

98%

2.11%

2.00%

2.21%

2.49%

2.53%

1. As of March 31. Mizuho Financial Group (including employees seconded to Mizuho Securities), Mizuho Bank, Mizuho Trust & Banking, Mizuho Securities, and Mizuho
Information & Research Institute.2
2. Now Mizuho Research & Technologies.
3. Mizuho Financial Group, Mizuho Bank, and Mizuho Trust & Banking.
4. In Japan (aggregate for Mizuho Financial Group, Mizuho Bank, Mizuho Trust & Banking, Mizuho Securities, and Mizuho Information & Research Institute2).
5. In Japan as of July (aggregate for Mizuho Financial Group, Mizuho Bank, Mizuho Trust & Banking, and Mizuho Securities).
6. Outside Japan. 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.
7. For new employees hired in Japan with plans to start in April of the following year (aggregate for Mizuho Financial Group, Mizuho Bank, Mizuho Trust & Banking, and Mizuho
Securities).
8. In Japan (aggregate for Mizuho Financial Group, Mizuho Bank, Mizuho Trust & Banking, and Mizuho Securities).
9. As of June. Figures up to FY2019 are aggregates for Mizuho Financial Group, Mizuho Bank, Mizuho Trust & Banking, Mizuho Securities, and Mizuho Business Challenged(special subsidiary company). Figures for FY2020 and later also include Mizuho Information & Research Institute2 and Mizuho Research Institute.2

Environment1
Total energy consumption (Megawatt hours)3
Scope 1CO2 emissions
Scope 2
(tons of CO2)
Scope 3 (business trips)

FY2016FY2017FY2018FY2019FY20204

523,309
16,026
213,709
5,894

512,691
16,028202,9396,088

499,334
15,845
191,730
5,480

453,129
14,756
168,5225,396

434,289
13,999156,877
1,375

1. In principle, these data items include all the facilities of eight group companies: Mizuho Financial Group, Mizuho Bank, Mizuho Trust & Banking, Mizuho Securities, Mizuho
Research Institute2, Mizuho Information & Research Institute2, Asset Management One, Mizuho Private Wealth Management, and Mizuho Americas (data up to FY2017 arefor nine companies including the former Trust & Custody Services Bank).
2. Now Mizuho Research & Technologies.
3. Value obtained by converting “Direct Energy Consumption” and “Indirect Energy Consumption” into megawatt hours.
4. Provisional values

Sustainable finance & Environmental finance
Sustainable finance (¥ trillion)(of which, environmental finance)

103

Mizuho Financial GroupFY2018FY2019FY2020

1.1
(0.6)

2.4
(1.1)

4.7
(1.5)

In light of the expectations and requirements that investors hold in regards to ESG evaluations, Mizuho Financial Group uses
external ESG evaluations to consider our key sustainability areas and to improve our related initiatives. We will continue to focus
on expanding ESG information disclosure and engaging with stakeholders, including ESG evaluation institutions.
Inclusion in indices based on ESG evaluation

3.7(Out of a maximum possible score of 5)

S&P Global
ESG Score

66(Out of a maximum possible score of 100)

Sustainalytics
ESG Risk Rating

20.9(Numbers closer to 100 indicate higher risk)

 ur FTSE Russell ESG Score dropped from 4.1 in FY2019 to 3.7
O
in FY2020.

Message from theGroup CFO

ESG Score ur S&P Global ESG Score rose from 65 in FY2019 to 66 in
O
FY2020. Our ranking within the financial industry (converted toa scale of 100) rose from 26th to 19th.
On the basis of this score, Mizuho Financial Group was selected as a constituent of the Dow Jones Sustainability Asia/PacificIndex.
 ur Sustainalytics ESG Risk Rating rose from 20.2 in FY2019 toO
20.9 in FY2020.
On the basis of this score, Mizuho Financial Group was selected
as a constituent of the STOXX Global ESG Leaders Index.

Our strategies forcreating value

FTSE

Inclusion in ESG indices (page 52)

Participation in international initiatives
In an effort to promote activities aimed at fostering a sustainable society, Mizuho participates in a variety of initiatives both inand outside Japan.

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, Asset Management One)

Impact Management Project(Mizuho Financial Group, Mizuho Bank)

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 Asset Managers initiative(Asset Management One)

Climate Action 100+
(Asset Management One)Montreal Carbon Pledge(Asset Management One)

Cross-Sector Biodiversity Initiative (CSBI)(Mizuho Bank)

30% Club(Mizuho Financial Group)
Integrated Report 2021

Foundations for our
corporate value(Third out of seven stages AAA – CCC)
Continuingfrom FY2019, our MSCI ESG rating remained at “A”
in FY2020.

Data sectionA

ESG Rating

Appendix

MSCI

About Mizuho

ESG evaluation

Message from theGroup CEONon-financial data/ESG-related information

104

Data section

Mizuho’s global network (As of June 30, 2021)

Amsterdam
Brussels
Duesseldorf
Frankfurt
ViennaTianjin
DalianQingdao
Seoul

LondonNanjing
Moscow

Wuhan

Paris

MunsbachCalgary

ChicagoTorontoBostonXiamenMilan

MadridBeijing

Hefei

ShenzhenIstanbul

Guangzhou

TehranBahrainRiyadhAbu Dhabi
Dubai
Ahmedabad

New Delhi
Hanoi

MumbaiBangalore

New York

Shanghai

Atlanta

Wuxi
TaipeiTaichung
Kaohsiung
Hong Kong
ManilaSan Francisco

Washington, DC

Los Angeles

NassauDallasCayman Islands

HoustonLeon
Mexico City

LabuanChennai

Ho Chi Minh City

YangonPhnom Penh

Thilawa
Johannesburg

Suzhou, Kunshan, Changshu

Bangkok

Sao Paulo

RayongJakarta
SydneyKuala Lumpur

Santiago

Singapore

Europe, the Middle East, and Africa 

Asia and Oceania Mizuho Bank

Mizuho Bank

41 offices

Mizuho Bank

26 offices

Mizuho Bank

17 offices

Americas 

84 offices

Mizuho Trust & Banking

1 officeMizuho Securities

7 officesMizuho Securities

7 officesMizuho Trust & Banking

Mizuho Securities

5 offices

Asset Management One

2 offices

Asset Management One

1 officeMizuho Securities

19 offices

Asset Management One

1 officeMizuho Research & Technologies 2 offices

Asset Management One

4 officesMizuho Research & Technologies

1 office

Note: Mizuho’s global network consists of branches, representative offices and overseas subsidiaries.

105

Total Mizuho Financial Group

1 officeMizuho Research & Technologies 3 offices

Data section

Tatsufumi Sakai, President & Group CEO

Capital:¥2,256.7 billion

Issued shares:

2,539,249,894 shares

Number of employees: 1,949(Total number of employees on a consolidated
basis: 54,492)
Date of establishment: January 8, 2003

R&I

JCR Moody’s S&P

Mizuho Financial Group

A+

AA-

A1

A-

A-

Mizuho Bank

AA-

AA

A1

A

A-

Mizuho Trust & Banking

AA-

AA

A1

A

A-

Mizuho Securities

AA-

AA

A1

A

—

Reference
Japanese Government

AA+

AAA

A1

A+

A

Historical stock price data Tokyo Stock Exchange

Shareholders (common stock)Mizuho Financial Group

Foreign investors

22.35%
National & municipal
government

Fitch

Individuals and others

160

29.61%

140

0.03%

Nikkei Index

120

Other domestic
companies

100

11.23%

80

Securities
companies

6.18%

60

Financial institutions

30.60%

40

Mar-19Sep-19Mar-20

Sep-20

About Mizuho

Representative:(As of June 30, 2021)

Message from theGroup CFO

Location of head office: 1-5-5, Otemachi, Chiyoda-ku, Tokyo
100-8176, Japan

Rating information

Mar-21

The graph showing Mizuho Financial Group’s stock price and the Nikkei stock
price average has been prepared as an index with the closing prices on March
31, 2019 as 100.
Mizuho Financial Group conducted a 1-for-10 share consolidation on October
1, 2020. The effect of the share consolidation is reflected in the stock price data
given above.

Our website provides additional information regarding
the business operations of Mizuho Financial Group andour group companies. Sections covering IR, financial
information, and our products and services are available
in addition to in-depth industry and economic reports.
Additionally, you can sign up for our News ReleaseE-mail Distribution Service to receive updates by email.
‌www.mizuhogroup.com/

Financials and Presentations

Gain insights into our approach to sustainability.

Access reports, presentations, news, and other investor resourcesand get details on upcoming events.

Appendix

Sustainability

Our strategies forcreating value

Tokyo Stock Exchange (8411)
New York Stock Exchange (MFG)

Foundations for our
corporate value

Mizuho Financial Group, Inc

Stock listing (code):

Data section

Company name:Message from theGroup CEOCorporate profile (As of March 31, 2021)‌‌https://www.mizuhogroup.com/sustainability‌‌https://www.mizuhogroup.com/investors/materials

Integrated Report 2021

106

Appendix

Group companies (As of March 31, 2021, except for each company’s network, which is as of June 30, 2021)

Mizuho Financial Group
Date of establishment

January 8, 2003

Capital¥2,256.7 billion

Location of head office 1-5-5, Otemachi, Chiyoda-ku, Tokyo
100-8176, Japan
Representative

Tatsufumi Sakai, President & Group CEO

Number of employees

1,949

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

Koji Fujiwara, President & CEO

Number of employees

27,659

Network in Japan

463

Network outside Japan 84
Websitewww.mizuhogroup.com/bankMizuho Trust & Banking
Date of establishment

March 12, 2003

Capital¥247.3 billion

Otemachi Tower

Location of head office 1-2-1, Yaesu, Chuo-ku, Tokyo
103-8670, Japan
Note: We plan to move to the following address on
November 22, 2021
1-3-3 Marunouchi, Chiyoda-ku, Tokyo
100-8241, Japan

Representative

Kei Umeda, President & CEO

Number of employees

3,265

Network in Japan

60

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(Appointed on April 1, 2021)

Number of employees

7,331

Network in Japan

237

Network outside Japan 19
Website107

Mizuho Financial Group

www.mizuhogroup.com/securities

Mizuho Marunouchi Tower

Group companies

Date of establishment
CapitalLocation of head office
Representative
Number of employees

October 3, 2005
¥500 million
1-3-3, Marunouchi, Chiyoda-ku, Tokyo
Naoyuki Machinaga, President
37

Date of establishment
CapitalLocation of head office

June 20, 2016
$3,820 million
1271 Avenue of the Americas, New York,NY 10020, USA
Shuji Matsuura, CEO(Appointed on April 1, 2021)
www.mizuhogroup.com/americas

Mizuho Private Wealth Management
Mizuho Private Wealth Management offers consulting services
tailored to the needs of its customers. These services range
from consulting on customers’ financial matters such as wealthmanagement and arranging for business inheritance to advice on
customers’ individual matters, including the health of the customers
themselves and their family members, as well as children’s
education.

Mizuho Americas
Mizuho Americas is a US bank holding company with Mizuho’s
primary US-based banking, 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 thecollaboration of its banking, trust banking, and securities operations,
it is conducting management and other activities that are necessaryfor expanding its profit base.

Representative
WebsiteCustody Bank of JapanAs 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 to become the best partner
for clients’ diverse needs. Its balance of assets under management
currently stands at approximately ¥700 trillion, the highest in Japan.

Date of establishment
CapitalLocation of head office
Representative
Number of employees
WebsiteJuly 27, 2020
¥51,000 million
Harumi Island Triton Square Tower Z,
1-8-12, Harumi, Chuo-ku, Tokyo
Yoshikazu Tanaka, President & CEO
1,878
www.custody.jp/english/index.html

MI Digital Services
MI Digital Services is a joint venture between Mizuho and IBM Japanthat provides high-quality and highly efficient system management
services by integrating its expertise in operating core IT systems with
cutting-edge technologies.

Date of establishment
CapitalLocation of head office

Representative
Number of employees

June 30, 2020
¥20 million
IBM Japan Headquarters 11F
19-21, Nihonbashi, Hakozaki-cho,
Chuo-ku, Tokyo(as of May 24, 2021)
Kazuo Fujiwara, President & CEO
742

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 eachcompany 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 Research & Technologies is the company that was formed when Mizuho Information & Research Institute and Mizuho Research Institute merged andchanged their trade name on April 1, 2021.

Integrated Report 2021

About Mizuho

Representative
Number of employees
Network outside Japan
WebsiteOctober 1, 2016
¥2,000 million
Tekko Building, 1-8-2, Marunouchi,
Chiyoda-ku, Tokyo
Akira Sugano, President & CEO
839
4
www.am-one.co.jp/english/

Message from theGroup CFO

Asset Management One is an asset management company in which
Mizuho and Dai–ichi Life Holdings both have equity holdings. AssetManagement One collaborates with its offices in Europe, the US, andAsia to offer investment trust products to individuals andcorporations, as well as provide investment advisory services tocustomers including Japanese and overseas pension funds.

Our strategies forcreating value

Date of establishment
CapitalLocation of head office

Asset Management One

Foundations for our
corporate value

April 1, 2021
¥1,627 million
2-3, Kanda-Nishikicho, Chiyoda-ku, Tokyo
Masahiro Otsuka, President & CEO
4,605
3
www.mizuhogroup.com/information-and-research

Data section

Mizuho Research & Technologies holds wide-ranging research andanalysis capabilities covering social and economic trends as well as
the challenges our clients face, advisory and consulting capabilities
to solve problems, advanced technical knowledge of digitaltechnologies, and strength in IT system design and implementation
based on an extensive experience and track record. Through thefusion of these capabilities, Mizuho Research & Technologies is able
to offer a full range of services and solutions to meet our clients’ trueneeds.

Date of establishment
CapitalLocation of head office
Representative
Number of employees
Network outside Japan
WebsiteAppendix

As a core group company driving Mizuho’s non-financial business,
Mizuho Research & Technologies provides clients and society withnew added value.

Message from theGroup CEO

Mizuho Research & Technologies4

108

Appendix

Compliance contacts

Internal control and audit hotline—A system designed for reporting questionable accounting or auditing matters—
Reporting items: M izuho Financial Group has established a hotline• When a report is received concerning the reporting items stipulated

to receive reports from in and outside the company

on the left, Mizuho Financial Group will make a reasonable effort

in connection with problems concerning internal

to investigate the facts behind the information received and reportcontrol and audits of accounts and financial reports.
Contact point: This hotline has been established within an externalback on the results.
• Anonymous tips are also acceptable, but there are cases where it

law office. Reports can be made via postal mail orwill not be possible to fully satisfy the intentions behind such tips

email.

owing to constraints on investigations and the inability to report

Postal mail: 12th Floor, Kasumigaseki Bldg.,
Kasumigaseki 3-2-5, Chiyoda-ku, Tokyoback.
• Information on persons making such reports is not disclosed to100-6012

third parties other than the group companies except in cases whereMizuho Accounting Hotline, c/o Daiichi

the assent of the person in question has been obtained or such

Fuyo Law Officedisclosure is required under laws and ordinances.

Email: kaikei-mizuho@daiichifuyo.gr.jp

Approaches to financial alternative dispute resolution (ADR)
In order to deal expeditiously, fairly, and appropriately withThe designated dispute resolution institution as defined in Japan’scomplaints and other feedback from customers, Mizuho Bank

Banking Act with which Mizuho Bank and Mizuho Trust & Banking

and Mizuho Trust & Banking have concluded a contract for thehave contracted

implementation of dispute resolution procedures with the Japanese

The Designated Dispute Resolution Institution: Bankers Association, which is a designated dispute resolution
institution as defined in Japan’s Banking Act. Mizuho Trust & Banking
has also concluded a contract for the implementation of dispute

Japanese Bankers Association
Contact: Japanese Bankers Association Customer Relations Center
Tel: +81-(0)3-5252-3772

resolution procedures with the Trust Companies Association of Japan,
which is a designated dispute resolution institution as defined in

The designated dispute resolution institution as defined in Japan’sJapan’s Trust Business Act and Act on Engagement in Trust Business

Trust Business Act and Act on Engagement in Trust Business by

by Financial Institutions. In addition, Mizuho Securities has concluded

Financial Institutions with which Mizuho Trust & Banking has

a contract for the implementation of dispute resolution procedures

contractedwith the Financial Instruments Mediation Assistance Center, which

The Designated Dispute Resolution Institution: 

is a designated dispute resolution institution as defined in Japan’s
Financial Instruments and Exchange Act.

Trust Companies Association of Japan
Contact: Trust Consultation Center of the Trust Companies
Association of JapanThe designated dispute resolution institution takes the steps toward

Tel: +81-(0)3-6206-3988

resolution from a fair and neutral perspective in cases where thesolutions to customers’ complaints adopted by our group companies

The designated dispute resolution institution as defined in Japan’s

are not accepted.

Financial Instruments and Exchange Act with which Mizuho Securities
has contracted
The Designated Dispute Resolution Institution: Financial Instruments Mediation Assistance Center
Contact: Financial Instruments Mediation Assistance Center
consultation center
Tel: +81-(0)3-3669-9833

109

Mizuho Financial GroupAppendix

In Japan, as a result of the trend toward concentration of businesses
and other economic activity solely in Tokyo, rural populations are
expected to decline and regional economies are expected to shrink
in the future. As a nation, Japan must look for ways to revitalize
regional areas through a virtuous cycle in which jobs draw people
back to local areas and population growth creates more jobs.

Utilizing our office network in Japan, we are striving to promote
the revitalization of regional economies by providing our clientswith funding, supporting the operations of local businesses, andcollaborating with regional governments.

Case example
Transforming Hachijojima into a “smart island”

Mobility
supportCreating safe and secure lifestyles
Creating new value

Wellbeing
monitoring

Solving local challenges(mobility support, wellbeing
monitoring, disaster prevention)

Tourism

Disasterprevention

Finance, technology,
data utilization
EnergyCashlesspayments

Mizuho Bank, Tokyo Prefecture’s Hachijo Town, and the Hachijo Town
Chamber of Commerce and Industry entered into a comprehensive
partnership agreement for promoting cashless payments. With cashless
payments as a starting point, the partnership is working to transformHachijojima into a “smart island” by applying digital technology aimed atsolving local challenges.
Mizuho Financial Group, Mizuho Research & Technologies, Blue Lab, andother group companies are providing their combined knowledge andknowhow regarding finance and digital technology, as well as the technicalinsights of our clients via open collaboration, in order to contribute to therevitalization of Hachijo Town through disaster prevention to protect thesafety and security of community members, tourism promotion, and otherefforts. Additionally, we hope these leading-edge initiatives for boosting the
local community will serve as a model for other regions.

Finance facilitation and response to the Guidelines for Personal Guarantee Provided by Business Owners
Finance facilitation
Mizuho works to promote finance facilitation in accordance withgroup-wide fundamental policies. This includes ensuring that we
respond appropriately to requests for new loans or loan condition
adjustments, with consideration for the impacts of the COVID-19
pandemic, and provide tailored consulting.

Guidelines for Personal Guarantee Provided by Business Owners
We are committed to establishing and maintaining good relationships
with our clients in line with the Guidelines for Personal Guarantee
Provided by Business Owners established by the Japanese Bankers
Association and the Japan Chamber of Commerce and Industry, as
well as the associated special provisions that came into effect on
April 1, 2020.

About Mizuho
Message from theGroup CFO

Regional revitalization initiatives

Our strategies forcreating value

In particular, by providing consulting and support for SMEs’ growthstrategies, we can introduce clients to potential M&A opportunities
from the standpoint of business expansion and succession, andsupport the growth of innovative companies with exceptional
technologies or ideas.

Foundations for our
corporate value

Furthermore, a specialized business reorganization section within
our Head Office provides support for SMEs’ business improvement
and reorganization needs. In addition, our Head Office collaborates
with frontline offices to provide consultations and support for clients
through partnerships with external organizations, external specialists,and other financial institutions.

Data section

By drawing on our consulting capabilities to provide proposals andsolutions that address the issues SMEs face, we ensure that clients’perspectives are prioritized when providing support for businessexpansion, succession, reorganization, and other client needs.
We also believe that proactively supporting SMEs is a key part offulfilling our social responsibility as a financial institution.

Appendix

Support for small and medium-sized enterprises (SMEs)

Message from theGroup CEOSupport for SMEs and regional revitalization

We provide the option for a joint guarantee with a termination clauseand multiple other lending methods as alternatives to personal
guarantee provided by business owners. Also, we have establisheda structure for cooperation between our frontline offices and Head
Office to encourage the utilization of these methods.
Integrated Report 2021

110

Appendix

Internal audit structure

Basic approach
Internal audits refers to the series of activities, ranging from theobjective and comprehensive evaluation of the effectivenessand appropriateness of each process relating to governance,risk management and control, to providing recommendations andcorrective guidance, etc., toward the resolution 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 boardof directors of each of our group companies.

In line with the Basic Policy for Internal Audit established by Mizuho
Financial Group, our principal banking subsidiaries and other coregroup companies conduct internal audits, which include the internal
auditing of their respective subsidiaries. In addition, with respect tothe management of risks applicable across the Mizuho group, we
coordinate internal audits throughout the group to assess the risk
management status of the group as a whole.

Through these series of activities, internal audits assist the boards of
directors of each of our group companies to fulfill their managerial
duties efficiently and effectively.

Internal audit management structure

Our Internal Audit Committee monitors and manages internal audits
at our principal banking subsidiaries and other core group companies
through internal audit reports submitted by such subsidiaries. Our
Internal Audit Committee discusses and makes decisions regarding
internal audits at our principal banking subsidiaries and other coregroup companies and submits the results, together with the resultsof their examination of the internal audit reports, to the Audit
Committee and our Board of Directors.

Audit Committee

President & Group CEO

Internal Audit Committee(Chairman: President &Group CEO)

ReportBoard of Directors

Instruction

Mizuho Financial Group
Supervision,
audit

The Head of the Internal Audit Group reports the progress of
individual audits and plans to the Audit Committee, responds torequests for inspections, and receives specific instructions from thecommittee.

Internal audit management structureManagement

Mizuho Financial Group
Our Internal Audit Committee determines all important mattersconcerning internal audits. The committee is chaired by our President& Group CEO and is independent of our other business operations.

Internal Audit GroupInternal Audit
All organizational units

Internal Audit
Department

Mizuho Bank and Mizuho Trust & Banking
Both Mizuho Bank and Mizuho Trust & Banking have also established
an internal audit committee that is independent of their otherbusiness operations and maintains the independence of the Internal
Audit Group. Also, in both banks, the Head of the Internal Audit Group
reports the progress of individual audits and plans to the Audit &Supervisory Committee, responds to requests for inspections, andreceives specific instructions from the committee.
Both banks have established internal audit departments to conduct
internal audits at their respective domestic and overseas businessoffices, head office departments and group companies. Specifically,
the internal audit departments assess the suitability and effectivenessof business activities associated with compliance and risk management.

Management by Mizuho
Financial Group

Advice, guidance
and remedialrecommendations

Report the resultsof internal audits

Mizuho Bank, Mizuho Trust & Banking, Mizuho Securities,
and other core group companies

Subsidiaries of the above group companies

Other core group companies
Other core group companies have also established effective andefficient internal audit structures adapted to the characteristics oftheir respective businesses.

111

Mizuho Financial Group(As of June 30, 2021)

Appendix

Message from theGroup CEORisk Management Structure

Credit risk management

The Balance Sheet & Risk Management Committee and the Credit

matters pertaining to credit risk management. In addition, the Risk

Committee, each of which is a business policy committee of ourManagement Committee broadly discusses and coordinates mattersprincipal banking subsidiaries, are responsible for discussing

relating to basic policies and operations in connection with credit

and coordinating overall management of their individual credit

risk management and matters relating to credit risk monitoring for

portfolios and transaction policies towards obligors. The respective

the Mizuho group. Under the control of the Group Chief Risk Officer

Chief Risk Officers of our principal banking subsidiaries areof Mizuho Financial Group, the Credit Risk Management Department

responsible for matters relating to planning and implementing

and the Risk Management Department jointly monitor, analyze, andcredit risk management. The credit risk management departments

submit suggestions concerning credit risk and formulate and executeof our principal banking subsidiaries are in charge of planning andplans in connection with basic matters pertaining to credit risk

administering credit risk management and conducting credit risk

management.

measuring and monitoring. Such departments regularly present
reports regarding their risk management situation to Mizuho

Our principal banking subsidiaries and other core group companies

Financial Group. The credit departments of our principal banking

manage their credit risk according to the scale and nature of theirsubsidiaries determine policies and approve/disapprove individual

exposures in line with basic policies set forth by Mizuho Financialtransactions in terms of credit review, credit management andGroup. The Board of Directors of each company determines key

collection from obligors in accordance with the lines of authority set

matters pertaining to credit risk management.

forth respectively by our principal banking subsidiaries. In addition,
our principal banking subsidiaries have established internal audit
groups that are independent of the business departments in order toensure appropriate credit risk management.

Method of credit risk management
We have adopted two different but mutually complementary

obligor. Through this process, we curb losses in the case of a credit

approaches to credit risk management. The first approach is

event. The second is “credit portfolio management,” in which we“individual credit management,” in which we manage the process

utilize statistical methods to assess the potential for losses related tofor each individual transaction and individual obligor from execution

credit risk. Through this process, we identify credit risks and respond

until collection, based on our assessment of the credit quality of theappropriately.

Individual credit management
1. Credit Codes

2. Internal rating system

The basic code of conduct for all of our executive officers andOne of the most important elements of the risk management

employees engaged in the credit business is set forth in our credit

infrastructure of our principal banking subsidiaries is the use ofcode. Seeking to fulfill the bank’s mission and social responsibilities,

an internal rating system that consists of credit ratings and pool

our basic policy for credit business is determined in light ofallocations. Credit ratings consist of obligor ratings which represent

fundamental principles focusing on public welfare, safety, growth,

the level of credit risk of the obligor, and transaction ratings whichand profitability.

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

Message from theGroup CFO

Credit risk management structure
Our Board of Directors determines the Mizuho group’s basic

Our strategies forcreating value

and monitors and manages the credit risks of the group as a whole.

Foundations for our
corporate value

fundamental credit risk policy to manage major group companies,

of deterioration in obligors’ financial position.

Data section

whole. Specifically, Mizuho Financial Group establishes the group’s

value of assets (including off-balance-sheet instruments), as a result

AppendixMizuho Financial Group manages credit risk for the group as alosses that may be incurred due to a decline in, or total loss of, theAbout Mizuho

Basic approach
We define credit risk as the Mizuho group’s exposure to the risk ofperiod 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 both individual

Integrated Report 2021

112

Appendix

obligors and the status of the overall portfolio in a timely fashion.

based on obliger-specific characteristics such as type of business

Because we consider obligor ratings to be an initial phase of the(corporation or individual) and geography (in Japan or outside

self-assessment process regarding the quality of our loans and off-

Japan). We categorize our rating models for companies in Japanbalance-sheet instruments, such obligor ratings are closely linked

into those for large companies and those for small and medium-to the obligor classifications and are an integral part of the process

sized companies. The former consist of 13 models according tofor determining the provision for credit losses on loans andindustry-specific factors, while the latter consist of three models. For

charge-offs in our self-assessment of loans and off-balance-sheet

companies outside Japan, we utilize nine models.

instruments. (Please refer to the chart below regarding the connection
between obligor ratings, definition of obligor classifications of self-

These were developed by the Credit Risk Management Department

assessments, claims disclosed under the FRA and non-accrual, andbased on a statistical methodology and approved by the Chief Risk

past due & restructured loans).

Officer.

To assign obligor ratings, we have a quantitative evaluation system

Pool allocations are applied to small claims that are less than a(rating model) in place to enable proper assessment of an obligor’s

specified amount by pooling obligors and claims with similar risk

credit standing. The system gives a quantitative rating to an obligor

characteristics and assessing and managing the risk for each such

Connection between obligor ratings, definition of obligor classifications of self-assessments, claims disclosed under the FRA and
non-accrual, past due & restructured loans
Definitionof obligor
classifications ofself-assessment

Obligorratings(major
category)
A1—A3

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

B1—B2

Obligors whose certainty of debt
fulfillment poses no problems for theforeseeable future, hence their level ofcredit risk is sufficient.

C1—C3

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

D1—D3Obligors 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

113

Definition of ratings

E2

R

F1

G1

H1

Mizuho Financial Group

Category I(noncategorized)

Obligors who have not yet gone legallyor formally bankrupt but who aresubstantially bankrupt because they are
in serious financial difficulties and are notdeemed to be capable of restructuring.

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

Category III

Category IV(noncollateralized)

All credit given
to normal
obligors.

Obligors who require close watching
going forward because there areproblems with their borrowings, such as
reduced or suspended interest payments,
problems with fulfillment such as defacto postponements of principal orinterest payments, or problems with theirfinancial positions as a result of theirpoor or unstable business conditions.
Obligors who are not yet bankrupt but arein financial difficulties and are deemed
to be very likely to go bankrupt in the
future because they are finding it difficult
to make progress in implementing
their management improvement plans(including obligors who are receiving
ongoing support from financial
institutions).

Category II

Non-accrual,
past due &restructured
loans

Normal claims

Credit given to
watch obligors
other thanthose included
in category I.

Credit to
obligors whichhas pledged
collateral oris covered byguarantees,consideredof highquality, suchas deposit
collateral.

Claimsdisclosed
under the FRA

Claims for
specialattention

Credit given
to intensive
control
obligors otherthan thoseincluded in
category I andcategory II.
Credit to
obligors whichis coveredby generalcollateral,such as realestate andguarantees.

The difference
between theassessedvalue andmarket valueof collateralon credit tobankrupt andsubstantiallybankrupt
obligors (i.e.,
the portion ofloans for which
final collection
problems orlosses are
anticipated).

Restructured
loans
Loans past due
for 3 months
or moreClaims withcollection risk
Non-accrualdelinquent
loans
Credit tobankrupt andsubstantiallybankrupt
obligors, otherthan thosein categoryI, category II
and category
III (credit thatis judged to be
unrecoverable
or without
value).

Claims against
bankrupt andsubstantiallybankrupt
obligors, andequivalent
Loans tobankrupt
obligorspool. Our principal banking subsidiaries efficiently manage credit

Mizuho Financial Group defines a Restructured Loan as a loanrisk and credit screening by dispersing a sufficient number of small

extended to a Watch Obligor when the following conditions are met:claims within each pool.

an obligor is experiencing financial difficulties and lending conditions

Message from theGroup CEORisk Management Structure

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
Normalobligors

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 thegeneral 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 and off-balance-sheet instruments. Further, in regard to special attention obligors, for obligors with large claims more thana certain amount, if the cash flow from the return of principal 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

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 theclaims: a) an amount calculated based on the overall ability of the obligor to pay, or b) the estimated loss calculated on the basis of the balance
and the probability of failure over the next three years.
Further, for obligors with large claims more than a certain amount, if the cash flow from the return of principal and interest payments canreasonably be estimated, set up a provision 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 fromguarantors of the claims for specific provision for credit losses on loans and off-balance-sheet instruments, or charge-off the entire balance.

Bankrupt
obligors

3. Self-assessment, Provision for Credit Losses on Loans and OffBalance-Sheet Instruments and Charge-Offs

4. Credit review
Prevention of new impaired loans through routine credit

We conduct self-assessment of assets to ascertain the status of assets

management is important in maintaining the quality of our overallboth as an integral part of credit risk management and in preparationloan assets.

for appropriate accounting treatment, including provision for credit
losses on loans and off-balance-sheet instruments and charge-offs.

Credit review involves analysis and screening of each potential

During the process of self-assessment, obligors are categorized intotransaction within the relevant business department. In

certain groups taking into consideration their financial condition andcase the screening exceeds the authority of the department, thetheir ability to make payments, and credit ratings are assigned tocredit department in charge at headquarters carries out the review.

all obligors, in principle, to reflect the extent of their credit risks. The

We have specialist departments for different industries, business

related assets are then categorized into certain classes based on thesizes, and regions, carries out timely and specialized examinations

risk of impairment. This process allows us to identify and control thebased on the characteristics of the client and its market, and provides

actual quality of assets and determine the appropriate accounting

appropriate advice to the business department.

Message from theGroup CFO

An overdue loan is defined as a loan for a Watch Obligor of which

Our strategies forcreating value

procedures, which is audited by the Internal Audit Group.

Foundations for our
corporate value

debt forgiveness, etc.

and pool allocations once a year in accordance with predetermined

Data section

reduction, postponement of principal repayment/interest payment,

appropriateness and effectiveness of our approach to obligor ratings

About Mizuho

were amended favorably to the obligor such as allowing interest rate
Our principal banking subsidiaries generally review thebalance-sheet instruments and charge-offs. Specifically, the credit

In addition, in the case of obligors with low credit ratings and highrisk management department of each of our principal subsidiaries

downside risks, the business department and credit department

is responsible for the overall control of the self-assessment ofjointly clarify their credit policy and in appropriate cases assist theassets of the respective banking subsidiaries, cooperating withobligors at an early stage in working towards credit soundness.

the administrative departments specified for each type of asset,
including loan portfolios and securities, in executing and managing
self-assessments. In our assessment of the probability of obligor

Appendixtreatment, including provision for credit losses on loans and off-bankruptcy, we deem an obligor that is rated as being insolvent or
lower as being bankrupt.

Integrated Report 2021

114

Appendix

Credit portfolio management
1. Risk measurement
We use statistical methodologies that involve a risk measurement

liabilities for acceptances and guarantees; deposits and foreignsystem (enterprise value corporate valuation model, holding period

exchange; derivatives including swaps and options; off-balance-sheetof one year) to manage the possibility of losses by measuring theitems including commitments; and other assets involving credit risk.

expected average loss for a one-year risk horizon (“Expected Loss”)
and the maximum loss within a certain confidence interval (“Credit

In establishing transaction spread guidelines for credit transactions,

VAR”). The difference between Expected Loss and Credit VAR is

we aim to ensure an appropriate return from the transaction in lightmeasured as the credit risk amount (“Unexpected Loss”).

of the level of risk by utilizing credit cost data as a reference.

The risk measurement system covers the following accountAlso, we monitor our credit portfolio from various perspectives

items reported by each Mizuho Financial Group company: credit

and set guidelines noted below so that losses incurred through atransactions including loans and discounts; securities; obligors’

hypothetical realization of the full Credit VAR would be within theamount of risk capital and loan loss reserves.
2. Risk control methods

Loss distribution

Our principal banking subsidiaries have established guidelines toFrequency

manage “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 the

Averagestatus of capital adequacy. In cases where the limit is exceeded, ourprincipal banking subsidiaries will formulate a handling policy and/or
action plan.
This amount depends onthe 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.

Loss amountCredit VAR
Expected
Loss

115

Unexpected Loss

Mizuho Financial GroupIn addition to the above, our principal banking subsidiaries monitor
total credit exposure, credit exposure per rating, credit concentration
per corporate group, geographic area, and business sector to
make a periodical report to the Balance Sheet & Risk Management
Committee and the Credit Committee.

Message from theGroup CEORisk Management StructureMarket risk management

managed as a whole.

Market risk management structure
Our Board of Directors determines basic matters pertaining to market

As for the situation of market risk, the Risk Management Department

risk management policies. The Risk Management Committee ofsubmits reports to the President and Group CEO on a daily basis

Mizuho Financial Group broadly discusses and coordinates mattersand to the Board of Directors on a regular basis. For the purpose

relating to basic policies in connection with market risk management,of managing the market risk of our principal banking subsidiaries

market risk operations, and market risk monitoring. The Group CRO

and other core group companies, the Department regularly receivesof Mizuho Financial Group is responsible for matters relating toreports from each of them to properly identify and manage theirmarket risk management planning and operations.

market risk. These subsidiaries and core group companies, which
account for most of the Mizuho group’s exposure to market risk,

The Risk Management Department of Mizuho Financial Group isestablish their basic policies based on ours, and their Boards of

responsible for monitoring market risk, reporting and analysing,Directors determine important matters relating to market risk

making proposals, setting limits and guidelines, and formulating andmanagement.

implementing plans relating to market risk management.

Market risk management method
To manage market risk, we set limits that correspond to risk capitalstrength represented by capital and other indicators. The amount ofallocations according to the risk profile of each of our principal

risk capital allocated to market risk corresponds to value-at-risk (thebanking subsidiaries and other core group companies and thereby“VAR”) and additional costs that may arise in order to close relevant

prevent the overall market risk we hold from exceeding our financial

positions.

Setting limits

Monitoring

When the above mentioned limits are set, various factors are

To provide a system of mutual checks and balances in market

taken into account, including business strategies, historical limit

operations, we have established middle offices specializing in risk

usage ratios, risk-bearing capacity (profits, equity capital, and risk

management that are independent of front offices which engage inmanagement framework), profit targets and the market liquidity ofmarket transactions and of back offices which are responsible forthe products involved. The limits are discussed and coordinated bybook entries and settlements. When VAR is not adequate to control

the Risk Management Committee, discussed further by the Executive

risk, the middle offices manage risk using additional risk indices,Management Committee and then determined by the President &carry out stress testing, and set stop loss limits as needed. We

Group CEO. For trading and banking activities, we set limits for VAR

monitor market liquidity risk for individual financial products in theand for losses. For banking activities, we set position limits based

market while taking turnover and other factors into consideration.

on interest rate sensitivity (10 BPV) as needed. An excess over anyof these limits is immediately reported and addressed according to a

Message from theGroup CFO

group companies, and monitors how the group’s market risk is being

are significantly less favorable than usual.

Our strategies forcreating value

the market risk of our principal banking subsidiaries and other coreof market confusion or losses arising from transactions at prices that

Foundations for our
corporate value

fundamental risk management policy for the entire group, manages

becomes impossible to execute transactions in the market because

Data section

as a whole. Specifically, Mizuho Financial Group establishes therates. Our definition includes the risk of losses incurred when it

AppendixMizuho Financial Group manages market risk for the Mizuho groupto fluctuations in interest rates, stock prices, and foreign exchange

About Mizuho

Basic approach
We define market risk as the risk of losses incurred by the group due

pre-determined procedure.

Integrated Report 2021

116

Appendix

The following graph shows VAR figures of our trading activities for

Status of Mizuho Financial Group’s market risk

the fiscal year ended March 31, 2021:

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) andFiscal 2020 VAR (trading activities)(VAR: ¥ billion)
10
9degree of probability (or confidence interval).

8
7

Trading activities

6

VAR related to our trading activities is based on the following:5• historical simulation method;4• confidence interval: one-tailed 99.0%;

3• holding period of one day; and2• historical observation period of three years.

1

VAR by risk category (trading activities)(¥ billion)

Fiscal 2018
Maximum

Minimum

At March 31

Interest rate

2.0

2.9

1.3

2.0

Foreign exchange

0.8

2.8

0.1

0.3

Equities

0.6

7.7

0.2

0.5

Commodities

0.0

0.0

0.0

0.0

Total

3.4

9.2

2.4

2.6

Daily average

Maximum

Minimum

At March 31

Interest rate

2.7

7.2

1.3

6.7

Foreign exchange

0.4

1.1

0.1

0.8

Equities

0.6

4.5

0.2

1.7

Commodities

0.0

0.0

0.0

0.0

Total

3.8

11.8

2.3

8.3

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 2020

Mizuho Financial Group

03/28/2021

03/09/2021

02/18/2021

01/30/2021

01/11/2021

12/23/2020

12/04/2020

11/15/2020

10/27/2020

10/08/2020

09/19/2020

08/31/2020

08/12/2020

07/24/2020

07/05/2020

06/16/2020

05/28/2020

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

Daily average

Fiscal 2019117

05/09/2020

2021 and as of March 31, 2019, 2020 and 2021:

04/20/2020

by risk category for the fiscal years ended March 31, 2019, 2020 and

04/01/2020

0

The following tables show the VAR related to our trading activities

VAR (trading activities)(¥ billion)

Fiscal 2018

Fiscal 2019

Fiscal 2020

ChangeAs of fiscal year end

2.6

8.3

2.7

(5.5)

Maximum

9.2

11.8

9.1

(2.7)

Minimum

2.4

2.3

2.4

0.1

Average

3.4

3.8

5.4

1.6

Non-trading activities• VAR does not capture all complex effects of various risk

The VAR related to our banking activities is based on the same

factors on the value of positions and portfolios and could

conditions as those of trading activities, but the holding period is one

underestimate potential losses.

Message from theGroup CEORisk Management Structure

important to properly measure interest rate risk so that we calculate

Cross-shareholdings portfolio management activities

interest risk using appropriate methods such as recognizing demand

We take the market risk management approach with use of VAR anddeposits as “core deposits.”

risk indices for cross-shareholdings portfolio management activities
to properly manage stock price risk. Specifically, we monitor

The following graph shows the VAR related to our banking activities

VAR measurements and the state of risk capital on a daily basis.

excluding our cross-shareholdings portfolio for the year ended March

Moreover, in order to control stock price risk, we are working on the31, 2021:

reduction in cross-shareholdings through careful negotiations with

About Mizuho

month. In addition, as for risk management of banking activities, it is

0.5

550
500

0.4

450
400

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

0.3

daily VAR of trading activities for the fiscal year ended March 31,

300

0.2

2021 and the corresponding paired distribution of profits and losses.

250

0.1

200

0.0

150
100
50

In addition, we conduct evaluations of the assumptions related to
the VAR models. Based on the number of times losses exceeded-0.1

VAR through back testing and the results of the evaluation of the-0.2

model assumptions, we will make adjustments to the models as

03/28/2021

03/09/2021

02/18/2021

01/30/2021

01/11/2021

12/23/2020

12/04/2020

11/15/2020

10/27/2020

10/08/2020

09/19/2020

08/31/2020

08/12/2020

07/24/2020

07/05/2020

06/16/2020

05/28/2020

05/09/2020

04/20/2020

04/01/2020

0

We had one case where losses exceeded VAR during the period.

appropriate. Changes to fundamental portions of the VAR models are
subject to the approval of our Group Chief Risk Officer.

Foundations for our
corporate value

350

Fiscal 2020 back testing
The following table shows the VAR figures relating to our banking
activities for the fiscal years indicated:

Assumed profit or loss (¥ billion)
6
5
4

Fiscal 2018(¥ billion)

Fiscal 2019

Fiscal 2020

Change321

As of fiscal
year end

194.4

361.4

249.4

(111.9)Maximum

298.5

361.4

501.7

140.3

(1)

Minimum

194.4

167.9

224.0

56.0

(2)

Average

255.5

215.7

346.5

130.7

0

Data section

VAR (banking activities)

(3)
(4)
(5)

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

(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% confidence level is 2.5.

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,

Stress testing

particularly potential future events that are extreme in nature.

Because the VAR method is based on statistical assumptions, we• VAR may underestimate the probability of extreme market

conduct stress testing to simulate the levels of losses that could

movements.

be incurred in cases where the market moves suddenly to levels• The use of a 99.0% confidence level does not take account of,that exceed these assumptions. The stress testing methods we use

nor makes any statement about, any losses that might occur

include the calculation of losses under scenarios in which stresses

beyond this confidence level.

are applied to interest rate risk and stock price risk based on current

Appendix(%)

Our strategies forcreating value

Back testing
VAR
Interest rate on five-year government bonds(VAR: ¥ billion)

Message from theGroup CFO

counterparties.

Fiscal 2020 VAR (banking activities)

and projected economic conditions, historical market events, etc.
Integrated Report 2021

118

Appendix

Liquidity risk management
Basic approach
We define liquidity risk as the risk of losses arising from funding

as a whole. Specifically, Mizuho Financial Group establishes thedifficulties due to a deterioration in our financial position that

fundamental liquidity risk management policy for the entire group,

makes it difficult for us to raise necessary funds or that forces

manages the liquidity risk of our principal banking subsidiaries andus to raise funds at significantly higher interest rates than usual.

other core group companies, and monitors how the group’s liquidity

Mizuho Financial Group manages liquidity risk for the Mizuho grouprisk is being managed as a whole.

Liquidity risk management structure
Our Board of Directors determines basic matters pertaining tomatters relating to planning and running cash flow management

liquidity risk management policies. The Risk Management Committee

operations, and the Financial Planning Department is responsibleof Mizuho Financial Group broadly discusses and coordinates

for monitoring and adjusting the cash flow management situation

matters relating to basic policies in connection with liquidity risk

and for planning and implementing cash flow management tomanagement, operations, and monitoring, and proposes responses

maintain appropriate funding liquidity. Reports on liquidity risk

to emergencies such as sudden market changes. The Group Chiefmanagement are submitted to the Risk Management Committee

Risk Officer of Mizuho Financial Group is responsible for mattersand the Balance Sheet Management Committee (each of which is arelating to liquidity risk management planning and operations.

business policy committee), the Executive Management Committee

The Risk Management Department of Mizuho Financial Group is

and the President & Group CEO on a regular basis.

responsible for monitoring liquidity risk, reporting and analysing,making proposals, and formulating and implementing plans relating

Our principal banking subsidiaries and other core group companies

to liquidity risk management. In addition, the Group Chief Financial

also establish their basic policies on liquidity risk management to

Officer of Mizuho Financial Group is additionally responsible forproperly identify and manage liquidity risk.

Liquidity risk management method
We manage liquidity risk with the use of “liquidity risk management

testing to verify the sufficiency of liquidity reserve assets and theindicators” and “liquidity categorization.” The former is determined

effectiveness of countermeasures against a possible outflow of funds

for the purpose of managing limits on funds raised in the market

during a stress event. The results of stress testing are used for cash

considering our fund raising capabilities, and the latter is determinedflow management operations.

based on our funding conditions. We also carry out liquidity stress

Liquidity risk management indicators

Liquidity stress testing

Limits on funds raised in the market are set based on a number of

We carry out stress testing regularly based on market-wide factors,

time horizons taking into account characteristics and strategies ofidiosyncratic factors of the group, and a combination of both types

each of our principal banking subsidiaries and other core groupof factors to verify the sufficiency of liquidity reserve assets and thecompanies. Such limits are discussed and coordinated by theeffectiveness of our liquidity contingency funding plans. Furthermore,

Risk Management Committee, discussed further by the Executive

we utilize stress testing for evaluating the appropriateness of ourManagement Committee, and determined by the President & Groupannual funding plan.

CEO. An excess over any of these limits is immediately reported andaddressed according to a pre-determined procedure.

Liquidity categorization
We have established a group-wide framework of liquidity risk stages
such as “normal,” “anxious,” and “crisis,” which reflects funding
conditions. In addition, we set early warning indicators (“EWIs”)
and monitor on a daily basis to manage funding conditions. The
EWIs we use include stock prices, credit ratings, amount of liquidity
reserve assets such as Japanese government bonds, and our funding
situation.

119

Mizuho Financial GroupMessage from theGroup CEORisk Management Structure

Operational risk management

Definition

Principal risk management methods

Information
technology risk

Information technology risk (“IT risk”) refers to the risk thatproblems (e.g. malfunctions, disruptions, etc.) with thecomputer systems or improper use of the computers in thesesystems, which cause disruptions of the services provided tocustomers, or have significant impact on settlement systems,
etc., will result in losses for customers, and the incurrence oflosses (tangible or intangible) by our group companies.

• Identify and evaluate the risk by setting specific standards that need
to be complied with and implementing measures tailored based on
evaluation results to reduce the risk.
• Ensure ongoing project management in systems development andquality control.
• Strengthen security to prevent information leaks.
• Strengthen capabilities for rapidly and effectively dealing withcyberattacks.
• Improve effectiveness of emergency responses by improving
backup systems and holding drills.

Operations risk

The risk of customers incurring a loss or the risk of the group
incurring tangible and/or intangible 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
the operational 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, andcentralization 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, breach of 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 lossof personnel, deterioration of morale, inadequate
development of personnel, inappropriate working schedules,
inappropriate working and safety environment, inequality or
inequity in human resource management, or discriminatory
conduct.

• Conduct employee 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, or defects in asset
maintenance.

• Manage the planning and implementation of construction projects
related to the repair and replacement of facilities.
• Identify and evaluate the status of damage to tangible assets caused
by natural disasters or other causes, and respond appropriately tosuch damage.

Regulatory risk

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

• Understand important changes in regulations or systems that havesignificant 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.

Reputational risk

Risk that the group may incur losses due to damage to ourcredibility or the value of the “Mizuho” brand when market
participants or others learn about, or the media reports on,
various adverse events, including actual materialization ofrisks or false rumors.

• Establish framework to identify and manage, on an integrated basis,
information that may have a serious impact on group management
and respond to such risk in a manner appropriate to its scale andnature.
• Swiftly identify rumors and devise appropriate responses dependingon the urgency and possible impact of the situation to minimize
possible losses.

We also recognize and manage information security risk and compliance risk, which constitute a combination of more than one of the above components, as operationalrisk.

Integrated Report 2021

Message from theGroup CFO

state of group-wide operational risk.

legal risk, human capital risk, tangible asset risk, regulatory risk, andOur strategies forcreating value

subsidiaries and other core group companies while monitoring theoperational risk includes information technology risk, operations risk,

Foundations for our
corporate value

manage the operational risk associated with our principal banking

management for the Mizuho group as a whole. Considering that

Data section

risk management policies for these different types of risk. We

human error, or external events. We control operational risk

Appendix

reputational risk, we have separately determined the fundamental

resulting from inadequate or failed internal processes or systems,

About Mizuho

Basic approach
We define operational risk as the risk of losses that may be incurred

120

Appendix

Operational risk management structure
Our Board of Directors determines basic matters pertaining tomarket risk, reporting and analysing, making proposals, setting limits

operational risk management policies. The Risk Management

and guidelines, and formulating and implementing plans relating toCommittee of Mizuho Financial Group broadly discusses andoperational risk management.

coordinates matters relating to basic policies in connection with
operational risk management, operational risk operations, andOur principal banking subsidiaries and core group companies

operational risk monitoring. The Group Chief Risk Officer of Mizuho

establish their basic policies on operational risk management, andFinancial Group is responsible for matters relating to operational

their Boards of Directors determine important matters relating torisk management planning and operations. The Risk Management

operational risk management.

Department of Mizuho Financial Group is responsible for monitoring

Operational risk management method
To manage operational risk, we set common rules for data gatheringsophistication and diversification of financial operations andto develop various databases shared by the group and measuredevelopments relating to information technology by utilizing control

operational risk as operational VAR on a regular basis, taking into

self-assessments and improving measurement methods.

account possible future loss events and changes in the businessenvironment and internal management.

Control self-assessments
An autonomous method of risk management in which risk inherent

We have established and are strengthening management methods

in operations is identified and, after evaluating and monitoringand systems to appropriately identify, assess, measure, monitor,risks that remain despite implementing risk control, the necessary

and control the operational risks that arise from the growing

measures are implemented to reduce risk.

Definition of risks and risk management methods
As shown in the table on the previous page, we have definedmanagement methods in accordance with the scale and nature ofeach component of operational risk, and we apply appropriate riskeach risk.

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

2. Outline of the AMA
Outline of the measurement system
We have established our model by taking account of four elements:
internal loss data; external loss data; scenario analysis and businessenvironment; 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 oneyear holding period as operational risk equivalent, employing bothinternal loss data (i.e., actually experienced operational loss events),
and scenario data to reflect unexperienced potential future loss
events in the measurement.

purposes for implementing action plans to reduce operational risk,
and other countermeasures.

In the measurement of operational risk equivalent as of March 31,
2021, 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 operationalrisk equivalent.

121

Mizuho Financial GroupEstimation of Frequency Distribution and Loss Severity

Operational risk equivalent is calculated as a simple sum of those risk

Distribution

amounts related to the seven loss event types defined in the CapitalFrequency Distribution is estimated by applying information on

Adequacy Notice from Japan’s Financial Services Agency, large-scaleoccurrence frequency of both internal loss data and scenario data tonatural disasters, and litigation. In the measurement of operational

Poisson Distribution. Loss Severity Distribution is generated as therisk equivalent as of March 31, 2021, we did not reflect the correlation

result of combining, through a statistical approach (Extreme Valueeffects among operational risk related to each of the seven loss event

Theory), of the actual distribution for the low severity distribution

types.

portion created by internal loss data and another loss distribution(Log-normal Distribution or Generalized Pareto Distribution) for thehigh severity distribution portion created by scenario data.

Operational risk by loss event type

About Mizuho

Outline of measurement model

Message from theGroup CEORisk Management Structure

Loss Distribution (Compound Poisson Distribution) Approach (LDA)
is adopted for the calculation of operational risk. LDA is based on

Message from theGroup CFO

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

employing 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 of creation of scenario
data are explained later in the Scenario Analysis.

Outline of measurement modelBusiness environment andinternal control factors

External loss data

Scenario analysis

Scenario data

Litigation data

Risk amount for litigation risk

Large-scale natural
disaster scenario data

Risk amount for large-scale
natural disasters

Risk amount for internal 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

Risk amount for external fraud

Loss distribution
Monte-Carlo simulation

Distribution ofinternal loss

Risk amount for employment
practices and workplace safety
Risk amount for customers,
products, and business practices
Risk amount for damage tophysical assets

Risk amountCalculate risk amountby seven loss event
types defined by BIS

Risk amount for businessdisruption and system failure
Risk amount for execution,delivery, and process management

Appendix

Internal loss data

Data section

Frequency Distribution and Severity Distribution are estimatedFoundations for our
corporate value

Our strategies forcreating value

events (of low frequency and high severity).

Operational VAR(Total operational risk amount)Integrated Report 2021

122

Appendix

Operational risk of large-scale natural disasters

Setting units for scenario analysis

Monte-Carlo simulation is applied to the datasets expressed as a

In order to ensure completeness and sufficiency, we set units thatcombination of the probability of occurrence of large-scale natural

are commonly applied across group entities that adopt AMA (thedisasters and the probable loss amount in case of such occurrence,“Group Entities”) by referencing and categorizing risk scenarios

as opposed to estimating Frequency Distribution and Loss Severity

recognized through control self-assessment, internal loss data ofDistribution.

the Group Entities, external loss data, etc. Then each of the Group
Entities selects the unit on which scenario analysis is conducted fromOperational risk of litigation

the units established on a group-wide basis in accordance with its

Each litigation is converted into data according to the profile of thebusiness activities and operational risk profile.

individual litigation to which Monte-Carlo simulation is applied, as
opposed to estimating Frequency Distribution and Loss Severity

Estimation of occurrence frequency

Distribution.

Basic occurrence frequency (once a year) is calculated for eachscenario analysis unit. If a certain scenario analysis unit has relevant

Verificationinternal loss data of a pre-determined threshold amount or above,

We confirm the appropriateness of the measurement model by

its basic occurrence frequency is calculated based on such data, andverifying it, in principle, semi-annually.

if not, the basic occurrence frequency (the occurrence frequency per
year of losses at or above a pre-determined threshold) is calculated

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 highseverity).

with reference to the situation of occurrence of internal loss data ofless than the threshold amount and/or external loss data. The basic
occurrence frequency is then adjusted within a pre-determined range
for the purpose of reflecting the most recent BEICFs to determine thefinal occurrence frequency.
Estimation of Loss Severity Distribution
In order to estimate Loss Severity Distribution, we use a pre-As for external loss data, we refer to data publicly reported bydetermined series of severity ranges. Basic Loss Severity Distribution

domestic and overseas media, and such data are reflected in theis calculated for each scenario analysis unit as an occurrence ratio

estimation of occurrence frequency and Loss Severity Distribution in(in percentile figures) of loss at each severity range when losses

the process of scenario analysis. In addition, BEICFs are utilized asat or above a pre-determined threshold occurred, with referenceindices to adjust occurrence frequency and Loss Severity Distribution

to transaction amount data, external loss data, etc. Then the basicin the process of scenario analysis.

severity distribution is adjusted, if necessary, from the viewpointof statistical data processing to determine the final Loss Severity

We categorize scenario analysis into four approaches in accordanceDistribution.

with the characteristics of each loss event type and risk management
structures.

Creation of scenario data
For each scenario analysis unit, scenario data is generated as a series

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 failureof combinations of occurrence frequency per year at each severity
range, based on the final occurrence frequency and the final Loss
Severity Distribution.

Example of scenario data
Final loss severity distribution
Severity range (¥ billion)

At Mizuho Financial Group, loss event types to which Approach A is
0.1

applied account for a considerable amount of operational risk. The
detailed process of Approach A is explained here as a typical exampleof scenario analysis.

0.5

1

5

Total

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

123

Mizuho Financial GroupAppendix

These offices function as a controller in the event of an emergency

plays within the social infrastructure as a financial institution,that may materially impact business management, by collecting andensuring the continuity of financial settlement functions and the swift

analyzing information, formulating countermeasures, and taking

and efficient recovery of operations in the event of an emergency isother necessary action. In addition, their role includes collecting andone of our top priorities within the group.

analyzing signs and indicators of a potential crisis, and reporting
their findings promptly to management.

To improve business continuity management practices across thegroup, we assess the potential impact of emergencies beforehandParticular focus is placed on strengthening our response to naturaland formulate necessary countermeasures in order to minimize suchdisasters, covering not only earthquakes and tsunamis but also

impact, and to ensure the swift and efficient recovery of operations.

volcanic eruptions, large-scale wind or water damage, and facilitating

About Mizuho

In light of our social responsibility and the important role Mizuho

Message from theGroup CEOBusiness continuity management

Also, to secure the effectiveness of our measures to deal withresponses in the event of emergency.

emergencies, group-wide practice drills and training sessions are
conducted on an annual basis.

Response to COVID-19
In our response to the prolonged COVID-19 pandemic, we

continuity by implementing such measures as shift work inestablished Emergency Response Headquarters at Mizuho

response to local outbreaks and levels of crowding at peak

Financial Group, Mizuho Bank, Mizuho Trust & Banking, andbusiness hours. In addition to limiting the percentage ofMizuho Securities. Coordinating our efforts through these

employees working from our offices by expanding theheadquarters, we have been taking measures to prevent

implementation of remote work, our Head Office has

further spread of the virus, with our customers’ health andpromoted methods to minimize contact between employees

safety as our highest priority. Because we provide financial

through, for example, the proactive utilization of online

infrastructure that is indispensable for the functioning of

meetings.

society, we have been working as a unified group to maintainour provision of business funding to clients, our settlement

Regarding COVID-19 vaccines, to enable us to reduce theservices, and our other financial functions.

burden on local municipalities and contribute toward theacceleration of vaccination in Japan, we opened mass

A primary example of our infection prevention and businessvaccination centers for employees on July 1, 2021, with threecontinuity measures is that we have been asking customers tosites in Tokyo and one site in Osaka.

schedule appointments to visit our branches and issuing
Going forward, Mizuho will quickly respond to the structural

avoiding congestion in lobbies and other places in order toshifts COVID-19 is causing in the economy, industry, andprevent potential transmission among customers. We havesociety and continue working as a unified group to support

also implemented thorough measures to prevent droplet

our customers and society in facing these new challenges.

transmission, installing acrylic partitions at our counters andThrough this support, we will build new forms of partnerships

having our staff wear face guards. For our employees, wewith our customers and aim to transition to the next

have endeavored to prevent infection and ensure businessgeneration of financial services.

Appendix

numbered tickets as required by the level of crowding,

Our strategies forcreating valuethat are responsible for business continuity management and ourFoundations for our
corporate value

world.

Group, Mizuho Bank, Mizuho Trust & Banking, and Mizuho Securities

Data sectionthat have been occurring with increasing frequency around theestablishing Crisis Management Offices within Mizuho Financial

Message from theGroup CFO

initial responses to acts of terrorism and riots as well as cyberattacks
One of the ways in which we are working to achieve this is byIntegrated Report 2021

124Senior executives

Mizuho Financial Group
Members of the Board of Directors
Executive Officers as Defined in
the Companies Act

Yasuhiko Ushikubo

Tatsufumi Sakai

Head of Research & Consulting Unit

Soushi Fukuda

Tatsufumi Sakai

Koji Yonei

Member of the Board of Directors
President & Group CEO(Representative Executive Officer)

Seiji Imai

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

Head of Corporate & Institutional Company / Head of
Global Corporate Company

Makoto Umemiya

Member of the Board of Directors
Senior Executive Officer
Head of Financial Control & Accounting Group(Group CFO)

Motonori Wakabayashi

Member of the Board of Directors
Senior Executive Officer

Naoshi Inomata

Senior Executive Officer

Head of Strategic Planning Group (Group CSO)

Senior Executive Officer

Co-Head of IT & Systems Group

Masaomi Takada

Senior Executive Officer

Head of Compliance Group (Group CCO)

Hisashi Kikuchi

Senior Executive Officer

Head of Internal Audit Group (Group CA)

Mizuho Bank
Members of the Board of Directors

Member of the Board of Directors
Member of the Board of Directors(Audit & Supervisory Committee Member)

Hisashi Kikuchi

Member of the Board of Directors(Audit & Supervisory Committee Member)

Mikinao Kitada

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)

Yoshikazu Nishiwaki

Member of the Board of Directors (Outside Director,
Audit & Supervisory Committee Member)

Koji Fujiwara**

President & CEO (Representative Director)

Mizuho Securities
Members of the Board of Directors

Masahiko Kato**

Deputy President (Representative Director)

Yoshiro Hamamoto**

Head of Risk Management Group (Group CRO)

Nobuhiro Kaminoyama

Masaki Seki**

Kiyoshi Miyake**

Head of Corporate & Institutional Division

Yuzo Kanamori**

Member of the Board of Directors
Senior Executive Officer

Head of Human Resources Group (Group CHRO)

Yasuhiro Sato

Member of the Board of Directors
Chairman (Kaicho)*

Hisaaki Hirama

Member of the Board of Directors

Tatsuo Kainaka

Member of the Board of Directors (Outside Director)

Yoshimitsu Kobayashi

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)

Deputy President (Representative Director)

Toshitsugu Okabe

Member of the Board of Directors

Tatsufumi Sakai

Member of the Board of Directors

Takuya Sakaguchi

Head of Risk Management Group / Head ofCompliance Group / In Charge of Due Diligence
Department / Head of Global Risk Management /Head of Global Compliance / Internal Administration
Supervisor

Head of IT & Systems Group / Head of Operations
Group / Head of Global IT / Head of Global Operations

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

Izumi Kobayashi

Naoko NemotoGroup Chief Digital Innovation Officer (Group CDIO)/ Head of IT & Systems Group (Group CIO) / Head ofOperations Group (Group COO)

Deputy President (Representative Director)

Hisashi Kikuchi

Member of the Board of Directors(Outside Director, Audit & Supervisory Committee
Member)Senior Executive Officer(Representative Executive Officer)

ChairmanAtsushi Takahashi**Member of the Board of Directors (Outside Director)

Satoshi Ishii

President & CEO (Representative Director)

Member of the Board of Directors(Audit & Supervisory Committee Member)

Masami Yamamoto

Chairman, member of the Board of Directors(Outside Director)

Member of the Board of Directors(Outside Director, Audit & Supervisory Committee
Member)Executive Officers(Head of Each Region Outside Japan)
Shuji Matsuura

Deputy President (Representative Director)

Tatsufumi Sakai

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

Managing Executive Officer

Member of the Board of Directors (Outside Director,
Audit & Supervisory Committee Member)Head of Retail & Business Banking Company

Shinsuke Toda

Notes:

Naofumi Fuke

CEO for Europe, Middle East and Africa

Masahiro Otsuka

Senior Executive Officer

Senior Executive Officer

CEO for the Americas

Managing Executive Officer

Co–Head of Retail & Business Banking Company

Masayuki Sugawara

Masatoshi Yoshihara

CEO for East Asia

Senior Executive Officer

Managing Executive Officer

Co–Head of Global Markets Company

Yasuhiro Kubota

Yasuhiro Shibata

CEO for Asia & Oceania excl. East Asia

Senior Executive Officer

Co–Head of Global Markets Company

Managing Executive Officer

Masamichi Ishikawa

Mizuho Trust & Banking
Members of the Board of Directors

Head of Asset Management Company / Deputy Headof Strategic Planning GroupKei Umeda**

Senior Executive Officer

Masahiro Kihara

Senior Executive Officer

Head of Global Products Unit / Deputy Head ofCorporate & Institutional Company / Deputy Head of
Global Corporate Company

125

Senior Executive Officer

Mizuho Financial Group

President & CEO (Representative Director)

Hiroaki Ehara**

Deputy President (Representative Director)

Head of IT & Systems Group / Head of Operations
Group / Chief Crisis Management Officer

1. * indicates that Chairman (Kaicho) Sato engages
in our external activities, but does not chair the
Board meetings.
2. ** indicates directors concurrently serving as
executive officers.
3. Mizuho Financial Group executive officers as
defined in our internal regulations have notbeen listed.
4. Executive officers, excluding the directors
concurrently serving as executive officers
and executive officers responsible for global
regional operations of Mizuho Bank, have notbeen listed.
5. Executive officers, excluding the directors
concurrently serving as executive officers ofMizuho Trust & Banking and Mizuho Securities,
have not been listed.
(As of July 1, 2021)

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), Hongqiao Sunnyworld Center,
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, Senmao Building,
147 Zhongshan Road, Xigang District,
Dalian, Liaoning Province 116011,
The People’s Republic of China
Tel 86-411-8360-2543

Mizuho Bank (China), Ltd.
Guangzhou Branch

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

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

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

Mizuho Bank (China), Ltd.
Wuxi Branch

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

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 2220, Suning Universal Hotel, 188 Guangzhou Road,
Nanjing, Jiangsu Province 210024,
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

Mumbai Branch

Level-17, Tower-A, Peninsula Business Park,
Senapati Bapat Marg, Lower Parel, Mumbai,
Maharashtra-400 013, India
Tel 91-22-4911-2000

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

Indonesia
PT. Bank Mizuho Indonesia
Menara Astra, 53rd Floor, Jl. Jend. Sudirman Kav.
5-6, Jakarta 10220, Republic of Indonesia
Tel 62-21-5091-0888

Korea
Seoul Branch
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
Marketing Office

Level 27, Menara Maxis, Kuala Lumpur City Centre,
50088 Kuala Lumpur, Malaysia
Tel 60-3-2070-6880

Mizuho Bank (Malaysia) Berhad

Level 27, Menara Maxis, Kuala Lumpur City Centre,
50088 Kuala Lumpur, Malaysia
Tel 60-3-2058-6881

Message from theGroup CEO
About Mizuho

Level 29, 60 Martin Place, Sydney NSW 2000 Australia
Tel 61-2-8273-3888

Mizuho Bank (China), Ltd.
Tianjin Branch

Message from theGroup CFO

Australia
Sydney BranchSuzhou Industrial Park, Suzhou, Jiangsu Province 215123,
The People’s Republic of China
Tel 86-512-6733-6888

Unit-11B, 11th floor, Prestige Palladium Bayan,Nos. 129 to 140, Greams Road, Chennai,
Tamil Nadu-600 006, India
Tel 91-44-4928-6600

Our strategies forcreating value(Country/Region)

17th Floor, Genway Building, 188 Wangdun Road,

Chennai Branch

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

Data section

Asia and Oceania

Mizuho Bank (China), Ltd.
Suzhou BranchAppendix

Network of Mizuho Bank

Foundations for our
corporate value

Location of offices outside Japan (As of June 30, 2021)

12 Marina View, #08-01 Asia Square Tower 2,
Singapore 018961, Republic of Singapore
Tel 65-6805-2000

Integrated Report 2021

126

TaiwanKaohsiung Branch

Iran
Tehran Representative OfficeBrazilBanco Mizuho do Brasil S.A.

12th Floor, No. 2, Chung Cheng 3rd Road,
Kaohsiung 800, Taiwan
Tel 886-7-236-8768

Unit 602, No.22, 7th Street, Velenjak Avenue,
Tehran, Iran, Postal code: 1985834706
Tel 98-21-2635-4711/4722

Taichung Branch

Italy
Milan Branch

Avenida Presidente Juscelino Kubitschek,
2041- Torre E-7 andar, Vila Olimpia, Sao Paulo, SP,
CEP. 04543-011, Brazil
Tel 55-11-5504-9844

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

Thailand

Bangkok Branch
98 Sathorn Square Office Tower 32nd – 35th floor,
North Sathorn Road, Silom, Bangrak, Bangkok 10500,
ThailandTel 66-2-163-2999, 2-002-0222

Eastern Seaboard Branch

300/7 ESIE Plaza 2, Unit No. 2-05 Moo 1, Tambol Ta Sit,
Amphoe Pluak Daeng, Rayong 21140, Thailand
Tel 66-3-899-7000

VietnamHanoi Branch
4th Floor, 63 LTT Building, 63 Ly Thai To Street, Hanoi,
Socialist Republic of Vietnam
Tel 84-24-3936-3123/3124

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)
AustriaMizuho Bank Europe N.V.
Vienna Branch

DC Tower 26th Floor, Donau-City-Strasse 7,1220 Vienna, Austria
Tel 43-1-269-1000-00

Bahrain

Bahrain Representative Office
Suite 201-202, Entrance 4, 2nd Floor, Manama Center,
Manama, Bahrain(P.O. BOX 5759, Manama, Bahrain)
Tel 973-17-224522

BelgiumMizuho Bank Europe N.V.
Brussels Branch

Avenue Louise 480, 1050 Brussels, Belgium
Tel 32-2-645-5280

FranceParis 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

127Mizuho Financial Group

6th Floor, Largo Augusto 7, 20122 Milan, Republic of Italy
Tel 39-02-778-0001

Saudi Arabia
Mizuho Saudi Arabia Company
North Lobby 1st Floor, Al Faisaliah Tower,
King Fahd Road, Olaya District, Riyadh 11544,
Kingdom of Saudi Arabia
Tel 966-11-273-4111

South Africa

Johannesburg Representative Office
2nd Floor, West Tower, Maude Street,
Nelson Mandela Square, Sandton 2196, South Africa,
P.O. Box 785553, Sandton 2146
Tel 27-11-881-5410

Spain
Mizuho Bank Europe N.V.
Madrid 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

TurkeyIstanbul 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
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

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

United Kingdom

London Branch
Mizuho House, 30 Old Bailey, London EC4M 7AU, UK
Tel 44-20-7012-4000

RussiaAO Mizuho Bank (Moscow)
5th floor, 20, bld. 1, Ovchinnikovskaya nab.,
115035 Moscow, Russian Federation
Tel 7-495-212-0333

The Americas(Country/Region)
BahamasMizuho Bank (USA) Nassau Branch
308 East Bay Street, P.O. Box N-7768, Nassau, Bahamas

CanadaCanada Branch
100 Yonge Street, Suite 1102, Toronto, Ontario,
Canada, M5C 2W1
Tel 1-416-874-0222

Calgary Office

Suite 1000, 888 3rd Street, South West, Calgary, Alberta,
Canada, T2P 5C5
Tel 1-403-444-5375

Cayman Islands
Cayman Branch
P. O. Box 1353, Harbour Place, 5th Floor,
103 South Church Street, George Town,
Grand Cayman KY1-1108, Cayman Islands

Chile
Santiago Representative Office
Av. Apoquindo 3650, Oficina 1201, Las Condes,
Santiago, Chile
Tel 56-2-3203-5773

MexicoMexico Representative Office
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.
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 2100, Chicago, IL 60606,
USA
Tel 1-312-855-1111
Note: Address changed to the following as of July 1, 2021.
311 South Wacker Drive, Suite 700, Chicago,
IL 60606, USA

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

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

Network of Mizuho Securities
Beijing Representative Office8011, Chang-Fu-Gong Office Building, Jia 26,
Jianguomenwai Street, Chaoyang District,
Beijing 100022, The People’s Republic of China
Tel 86-10-6523-4779

Shanghai Representative Office

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

311 South Wacker Drive, Suite 2100, Chicago, IL 60606,
USA
Tel 1-312-855-1111
Note: Address changed to the following as of July 1, 2021.
311 South Wacker Drive, Suite 700, Chicago,
IL 60606, USA

Mizuho Securities Asia Limited

Mizuho Bank (USA)
Dallas Representative OfficeMizuho Securities Asia Limited
Seoul Branch5345 Towne Square Drive, Suite 285, Plano, TX 75024,
USA
Tel 1-972-324-3350

5th Floor, Seoul Finance Center, 136,
Sejong-daero, Jung-gu, Seoul, 04520, Korea
Tel 822-2206-1800

Mizuho Bank (USA)
Houston Representative OfficeMizuho Securities Asia Limited(Sydney Office)2700 Post Oak Blvd., Suite 1270, Houston, TX 77056, 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

Mizuho Bank (USA)1251 Building Branch

1251 Avenue of the Americas, New York, NY 10020, USA
Tel 1-212-282-3000

Mizuho Bank (USA)San Francisco Representative Office

235 Pine Street, 19th Floor, San Francisco, CA 94104, USA
Tel 1-415-365-1750

Mizuho Desk(Country/Region)

UAE
Mashreqbank psc

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.)

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

311 South Wacker Drive, Suite 700, Chicago,
IL 60606, USA
Tel 1-312-294-8800

Mizuho Securities USA LLC
Houston Office2700 Post Oak Blvd., Suite 1270, Houston,
TX 77056, 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 Office

235 Pine Street, 19th Floor, San Francisco, CA 94104, USA
Tel 1-415-268-5500

Mizuho Securities Canada Inc.

1271 Avenue of the Americas, New York, NY 10020, USA
Tel 1-212-209-9300

Level 29, 60 Martin Place, Sydney NSW 2000 Australia
Tel 612-7904-3555

Mizuho Securities India Private Limited
Level-18, Tower-A, Peninsula Business Park,
Senapati Bapat Marg, Lower Parel, Mumbai,
Maharashtra-400 013, India
Tel 91-22-4353-7600

Foundations for our
corporate value

1275 Pennsylvania Avenue, NW, Suite 310, Washington,
DC 20004, USA
Tel 1-202-292-5080

Mizuho Securities USA LLC
Chicago OfficeMizuho 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

Mizuho House, 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

Data section

Washington, D.C. Representative Office

1B, rue Gabriel Lippmann, L-5365 Munsbach,Grand Duchy of Luxembourg
Tel 352-42-16-17-1

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

Appendix

235 Pine Street, 19th Floor, San Francisco, CA 94104, USA
Tel 1-415-365-1750

125 High Street, 21st Floor, Boston, MA 02110, USA
Tel 1-617-235-1722

Message from theGroup CEO

Mizuho Trust & Banking(Luxembourg) S.A.

About Mizuho

San Francisco Representative OfficeMizuho Securities USA LLC
Boston OfficeMessage from theGroup CFO

Network of Mizuho Trust & Banking

2700 Post Oak Blvd., Suite 1270, Houston, TX 77056, USA
Tel 1-713-499-4800

Our strategies forcreating value

Houston Representative OfficeMizuho 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

Integrated Report 2021

128

Investor information

Date of establishment

Convocation of general meetings of shareholders¥2,256.7 billion

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.

Issued shares

Record date

January 8, 2003

Paid-in capital

2,539,249,894 shares

Number of shareholders
Common stock: 712,351

Major shareholders (common stock)
Shares held

Percentageof shares
outstanding(%)

1

The Master Trust Bank of Japan, Ltd.
(Trustee account)

210,539,400

8.29

2

Custody Bank of Japan, Ltd.
(Trustee account)

114,941,800

4.52

3

State Street BankWest Client – Treaty 505234

41,977,995

1.65

4

Custody Bank of Japan, Ltd.
(Trustee account 5)

41,106,300

1.61

5

Custody Bank of Japan, Ltd.
(Trustee account 6)

36,427,700

1.43

6

Custody Bank of Japan, Ltd.
(Trustee account 7)

33,474,400

1.31

The Company may decide distribution of dividends fromsurplus and other matters provided for in each item of Article
459, Paragraph 1 of the Companies Act of Japan, but by aresolution of the Board of Directors, unless otherwise provided
for in laws or regulations.

7

Custody Bank of Japan, Ltd.
(Trustee account 1)

32,692,100

1.28

Record date for distribution of dividends from surplus

8

JPMorgan Chase Bank 385781

30,723,102

1.21

9

Custody Bank of Japan, Ltd.
(Trustee account 4)

26,582,760

1.04

10

Custody Bank of Japan, Ltd.
(Taxable trust money account)

26,416,350

1.04

Notes: 1. Figures for the Percentage of Shares Outstanding are rounded
down to the nearest second decimal place.
2. The Percentages of Shares Outstanding are calculated by excluding
the treasury stock (552,914 shares).

(As of March 31, 2021)



Stock listing(common stock)

Tokyo Stock Exchange

Accounting auditors

Ernst & Young ShinNihon LLC

Shareholder register manager
Mizuho Trust & Banking Co., Ltd.

Share unit
100 sharesFiscal year

April 1 to March 31

129

1. The 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. The provision of the preceding paragraph shall apply mutatis
mutandis to the record date for voting rights at the general
meetings of holders of classes of stock, where there is amatter to be resolved at an ordinary general meeting ofshareholders that requires, in addition to such resolution, aresolution by the relevant general meeting of holders of classof stock.
3. In addition to the preceding two paragraphs, the Company
may set an extraordinary record date, when necessary, by
a determination by Executive Officer(s) under the authority
delegated by the Board of Directors and upon giving a priorpublic notice thereof.

Mizuho Financial Group

Organizations that decide dividends from surplus

The record dates for distribution of dividends from surplus of
the Company shall be March 31 and September 30 of each year.

ADR* information

Outline of Mizuho Financial Group’s ADR
New York Stock Exchange
1. Exchange :MFG
2. Ticker symbol :60687Y109
3. CUSIP :4. Conversion ratio :1 ADR = 2 common shares
The Bank of New York Mellon
5. Depositary bank :6. Local custodian bank : Mizuho Bank, Ltd.
* ADRs 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.

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Analysis[Under Japanese GAAP]131

Key Indicators of Mizuho Financial Group, Inc.

133

Status of Asset Quality

130

Financial Analysis-Index

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

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
Profit Attributable to Owners of Parent
Comprehensive Income
Net Assets
Total Assets
Deposits
Loans and Bills Discounted
Securities

2021

¥

3,360.2471.0
931.8
9,362.2
225,586.2
150,504.9
83,704.6
43,697.2

2020¥

3,988.9448.5
7.6
8,663.8
214,659.0
144,472.2
83,468.1
34,907.2

2019¥3,936.9
96.5(110.5)
9,194.0
200,792.2
137,649.5
78,456.9
29,774.4

2018¥

3,590.8576.5
765.5
9,821.2
205,028.3
136,463.8
79,421.4
34,183.0

2017¥

3,351.7
603.5
558.1
9,273.3
200,508.6
130,676.4
78,337.7
32,353.1

3,650.87

3,372.96

345.00357.41335.96

per Share (Yen) (Note 1)
Diluted Profit Attributable to Owners of Parent

185.75176.87

3.80

22.72

23.86

per Share (Yen) (Note 1)

185.75176.86

3.80

22.72

23.78

(International Standard (Basel III)) (Note 2)
Tier 1 Capital Ratio

16.87%

17.25%

18.85%

18.24%

16.28%(International Standard (Basel III)) (Note 2)
Common Equity Tier 1 Capital Ratio

14.37%

14.52%

15.94%

15.44%

13.30%(International Standard (Basel III)) (Note 2)

11.63%

11.65%

12.76%

12.49%

11.34%

5.2%
8.60x

5.1%
6.98x

1.0%
44.99x

6.5%
8.42x

7.2%
8.54x

16,613.2(9,763.7)
40.8
46,981.3

1,901.8(5,808.5)(281.8)39,863.6(2,636.0)
5,487.1(18.6)
44,254.8

2,966.7(2,316.1)
149.9
46,334.3

4,690.1
5,796.3(24.5)
45,523.6

Net Assets per Share (Yen) (Note 1)
Profit Attributable to Owners of Parent

Total Capital Ratio

Net Return on Equity
PER (Times)
Cash Flow from Operating Activities
Cash Flow from Investing Activities
Cash Flow from Financing Activities
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)

131

Key Indicators of Mizuho Financial Group, Inc. (Consolidated)

Operating Income
Net Income

(

268.9
226.6

¥

Common Stock and Preferred Stock
Number of Shares Issued and Outstanding
Common Stock

2020

¥

2,256.7

2019

75.4
34.0

¥

2,256.7

2018

331.3
354.5

¥

2,256.7

2017

305.0
257.1

¥

2,256.5

378.0
326.6
2,256.2) ( 2,539,249,894shares) (25,392,498,945shares) (25,392,498,945shares) (25,389,644,945shares) (25,386,307,945shares)

Net Assets
Total Assets

5,397.7
14,169.2

5,362.4
12,823.7

5,518.7
11,637.1

5,441.3
10,584.8

5,342.5
9,269.3

2,128.26
Net Assets per Share (Yen) (Note 1)
Dividends per Share (Yen) (Interim Dividends per Share) (Yen)2,113.67

217.52214.43210.51

41.25

7.50

7.50

7.50

7.50

Common Stock (Note 2)(

Common Stock

) (

3.75)

(

3.75)

(

3.75)

(

3.75)

(

3.75)

Net Income per Share (Yen) (Note 1)

89.36

13.42

13.97

10.13

Diluted Net Income per Share (Yen) (Note 1)
PER (Times)
Dividend Propensity

89.36

13.42

13.97

10.13

12.91
12.86

17.89x
83.92%

92.07x558.69%12.25x53.65%

18.88x73.98%

15.79x58.06%

Appendix

Data section

Foundations for our
corporate value

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.

About Mizuho

2021

Message from theGroup CFO

Billions of yen

As of or for the Fiscal Years ended March 31,

Our strategies forcreating value

Key Indicators of Mizuho Financial Group, Inc. (Non-Consolidated)

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

132

Key Indicators of Mizuho Financial Group, Inc. (Consolidated)2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Analysis

Status of Asset Quality○ Credit-related Costs
Credit-related Costs (Consolidated)
Billions of yen

For the Fiscal Years ended March 31,

2021

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

204.9

2020

¥

Change

¥

171.7

33.2

209.9

183.3

26.6

18.3

21.9

(3.6)

(4.9)

(11.6)

6.6

—

—

—

○ Overview of Non-performing Loans (NPLs) as of March 31, 2021 (the Two Banks) (Banking Accounts)(Billions of yen)

1.SELF-ASSESSMENT
Categorization

ObligorBankrupt and Substantially
Bankrupt Obligors
48.7

Non-Categorization

Category II

48.7
Collateral, Guarantees, etc.:
Reserves for Possible Losses:

42.3
6.3

Category III

Reserve
Ratio
100%

Watch Obligors
Claims for Special
Attention
333.0

DirectWrite-offs

2.Non Performing Loans
based on the Financial
Reconstruction Act
Claims against Bankrupt
and Substantially Bankrupt
Obligors
48.7

3.Non-Accrual, Past Due& Restructured Loans
Loans to Bankrupt Obligors
19.0

Coverage Ratio 100%
Non-Accrual

Intensive Control Obligors
411.0

Category IV

332.4

78.6

Collateral, Guarantees, etc.: 164.7
Reserves for Possible Losses: 167.6

Reserve
Ratio
68.0%

Amounts forreserves arerecorded under
NonCategorization

Claims with Collection Risk
411.0

43.1 (Notes 2)
Claims for Special
Attention (Notes 1)

Collateral, Guarantees, etc.: 100.9
Reserves for Possible Losses: 57.5

Coverage Ratio 47.5%

Other Watch Obligors

Normal Obligors

397.5

Coverage Ratio 80.8%

Reserve Ratio against
Uncovered Portion
24.7%

Special Attention Obligors

Delinquent Loans

333.0

Loans Past Due for 3
Months or More
0.5
Restructured Loans
332.4

Total Coverage Ratio
68.0%
Claims against Special Attention Obligors-Coverage Ratio: 43.3%-Reserve Ratio for Uncovered Portion: 28.7%-Reserve Ratio against Total Amount of Claims: 22.8%
Reserve Ratio against Total Amount of Claims·Other Watch Obligors: 4.87%·Normal Obligors:
0.10%

Total
95,932.3

Total
792.7

Total
749.5

Notes: 1. Claims for Special Attention is denoted on an individual loans basis. Claims against Special Attention Obligors includes all claims, not limited to Claims for Special Attention.
2. The difference between total Non-Accrual, Past Due & Restructured Loans and total Non Performing Loans based on the FRA represents the amount of claims other than loans included in Non
Performing Loans based on the FRA.

133

Credit-related Costs、Overview of Non-performing Loans (NPLs)

Non Performing Loans based on the FRA (Consolidated)(Consolidated)
Billions of yen

As of March 31,

2021

2020

ChangeClaims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk
Claims for Special Attention

¥

55.5
409.7
377.5

¥

59.2
383.7
257.8

¥

(3.7)
26.0
119.6

Sub-total [1]Normal Claims

¥

842.8
93,186.7¥

700.8
92,661.2

¥

141.9
525.5

¥ 94,029.6¥ 93,362.1

¥

667.4

2021

2020

Change

0.89%

0.75%

0.14%

2021

2020

ChangeTotal [2]%NPL ratio [1] / [2]Note: Above figures are presented net of partial direct write-offs.

Message from theGroup CFO

○ Status of Non Performing Loans based on the FRA

About Mizuho

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

¥

—
—
—

¥

—
—
—

¥

—
—
—

Sub-total
Normal Claims

¥

—
4.7

¥

—
8.7

¥

—
(3.9)

¥

4.7

¥

8.7

¥

(3.9)

Total

(Consolidated and Trust Accounts)
Billions of yen

As of March 31,

2021

2020

ChangeClaims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk
Claims for Special Attention

¥

55.5
409.7
377.5

¥

59.2
383.7
257.8

¥

(3.7)
26.0
119.6

Sub-total
Normal Claims

¥

842.8
93,191.5¥

700.8
92,670.0

¥

141.9
521.5

¥ 93,370.9

¥

663.5

¥ 94,034.4

Appendix

Total

Foundations for our
corporate value

Claims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk
Claims for Special Attention

Data section

Billions of yen

As of March 31,

Our strategies forcreating value(Trust Accounts)

134

Status of Disclosed Claims under the FRA

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Analysis

Status of Asset Quality○ Status of Non-Accrual, Past Due & Restructured Loans (Consolidated)(Consolidated)
Non-Accrual, Past Due & Restructured Loans
Billions of yen

As of March 31,

Loans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

Total

2021

2020

Change

¥

19.5
415.3
0.5
377.0

¥

15.9
401.0
1.4
256.4

¥

3.6
14.3
(0.9)
120.6

¥

812.4

¥

674.8

¥

137.6

Note: Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.
Billions of yen

2021

Amount of Partial Direct Write-offs

¥

105.3

2020

¥

79.8

Change¥25.5

Ratio to Total Loans%

As of March 31,

Loans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

Non-Accrual, Past Due & Restructured Loans / Total Loans

2021

2020

Change

0.02%
0.49
0.00
0.45

0.01%
0.48
0.00
0.30

0.00%
0.01
(0.00)
0.14

0.97%

0.80%

0.16%

2021

2020

ChangeNote: Above figures are presented net of partial direct write-offs.

Reserves for Possible Losses on Loans
Billions of yen

As of March 31,

Reserves for Possible Losses on Loans
General Reserve for Possible Losses on Loans
Specific Reserve for Possible Losses on Loans
Reserve for Possible Losses on Loans to Restructuring Countries

¥

575.5
383.0
191.2
1.3

¥

424.4
239.0
185.4
―

¥

151.1
144.0
5.7
1.3

Note: Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.
Billions of yen

2021

Amount of Partial Direct Write-offs

¥

116.8

2020

¥

89.2

Change¥27.6

Reserve Ratios for Non-Accrual, Past Due & Restructured Loans%

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.

135

Status of Non-Accrual, Past Due & Restructured Loans (Consolidated)

2021

2020

Change70.84%

62.89%

7.94%

(Trust Accounts)
Non-Accrual, Past Due & Restructured Loans
Billions of yen

Loans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

Total

2021

2020

Change

¥

—
—
—
—

¥

—
—
—
—

¥

—
—
—
—

¥

—

¥

—

¥

—

About Mizuho

As of March 31,

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

2021

2020

ChangeLoans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

—%
—
—
—

—%
—
—
—

—%
—
—
—

—%

—%

—%

2021

2020

ChangeNon-Accrual, Past Due & Restructured Loans / Total Loans(Consolidated and Trust Accounts)
Non-Accrual, Past Due & Restructured Loans

Loans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

Total

¥

19.5
415.3
0.5
377.0

¥

15.9
401.0
1.4
256.4

¥

3.6
14.3
(0.9)
120.6

¥

812.4

¥

674.8

¥

137.6

Foundations for our
corporate value

Billions of yen

As of March 31,

Our strategies forcreating value%

As of March 31,

Message from theGroup CFO

Ratio to Total Loans

Note: Above figures are presented net of partial direct write-offs.

Ratio to Total Loans

Loans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

Non-Accrual, Past Due & Restructured Loans / Total Loans

2021

2020

Change

0.02%
0.49
0.00
0.45

0.01%
0.48
0.00
0.30

0.00%
0.01
(0.00)
0.14

0.97%

0.80%

0.16%

Data section%

As of March 31,

Appendix

Note: Above figures are presented net of partial direct write-offs.

136

Status of Non-Accrual, Past Due & Restructured Loans (Consolidated)2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Analysis

Status of Asset Quality○ Status of Loans by Industry
Outstanding Balances by Industry (Consolidated)
Billions of yen, %As of March 31,

2021
Outstanding
Balance Composition

2020
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¥ 57,293.1
10,904.9
50.7
2.2
315.8
728.3
2,852.6
1,225.0
2,647.7
5,095.4
4,775.7
9,598.6
3,066.0
3,345.0
673.9
1,223.6
10,786.8
26,411.5
228.4
9,212.4
16,970.6¥ 55,147.0
9,642.2
54.7
3.3
226.9
725.7
2,834.9
1,436.6
2,360.1
4,930.1
4,795.2
8,713.2
2,884.9
3,108.7754.7
1,443.5
11,231.5
28,321.1
355.3
9,106.0
18,859.7¥ 2,146.0
1,262.6
(4.0)
(1.1)
88.9
2.5
17.6
(211.6)287.6
165.2(19.4)
885.3
181.0
236.2
(80.7)(219.8)(444.6)(1,909.6)(126.9)106.3(1,889.0)

Total

100.00%
19.03
0.09
0.00
0.55
1.27
4.98
2.14
4.62
8.89
8.34
16.75
5.35
5.84
1.18
2.14
18.83
100.0
0.87
34.88
64.25

¥ 83,704.6/¥ 83,468.1

100.00%
17.48
0.10
0.01
0.41
1.32
5.14
2.60
4.28
8.94
8.69
15.80
5.23
5.64
1.37
2.62
20.37
100.00
1.26
32.15
66.59
/

¥

/
1.55
(0.01)(0.01)
0.14(0.05)(0.16)(0.46)
0.34(0.05)(0.35)
0.95
0.12
0.20
(0.19)(0.48)(1.54)/(0.39)
2.73(2.34)

236.4/

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, 2021

Billions of yen, %As of March 31, 2020

Billions of yen, %Myanmar
Laos

¥

7.2
0.1

―
―

¥

―
―

Total
Ratio to Total Assets

¥

7.3
0.00%

Total
Ratio to Total Assets

¥

―
―%

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.

137

Status of Loans by Industry、Status of Loans by Nationality of Borrowers

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.
[Under Japanese GAAP]139

Independent Auditor’s Report

143

Consolidated Financial Statements

155

Notes to Consolidated Financial Statements

138

Financial Data of Mizuho Financial Group, Inc.-Index

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Independent Auditor’s Report

Independent Auditor’s Report
The Board of Directors
Mizuho Financial Group, Inc.

OpinionWe have audited the accompanying consolidated financial statements of Mizuho Financial Group, Inc. and its consolidated
subsidiaries (the Group), which comprise the consolidated balance sheet as at March 31, 2021, and the consolidated
statements of income, comprehensive income, changes in net assets, and cash flows for the year then ended, and notes tothe consolidated financial statements.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated
financial position of the Group as at March 31, 2021, and its consolidated financial performance and its consolidated cash
flows for the year then ended in accordance with accounting principles generally accepted in Japan.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities underthose standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial
Statements section of our report. We are independent of the Group in accordance with the ethical requirements that are
relevant to our audit of the consolidated financial statements in Japan, and we have fulfilled our other ethical responsibilities
in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of theconsolidated financial statements of the current period. These matters were addressed in the context of the audit of theconsolidated financial statements as a whole, and in forming the auditor’s opinion thereon, and we do not provide aseparate opinion on these matters.
(1) Reasonableness of self-assessment of loans, write-offs and reserve provisions
Description of Key Audit Matter

Auditor’s Response

As described in (10) “Reserves for Possible Losses on
Loans” in Note 5 “Standards of Accounting Method”, theGroup recognizes the reserves for loan losses based on
the internally established standards for self-assessment ofloans and for write-offs and reserve provisions. The
standards consider the obligor’s financial condition,
valuation of collateral and expectation of future economic
conditions.
When the credit risk of receivables held at the end of the
fiscal year is significantly different from the past due tochanges in the environment or other factors, the reserve isadjusted by management to consider factors such as
economic uncertainty.
In this fiscal year, the Group made additional reserves forloan portfolios of similar credit risk characteristics with ahigh probability of losses by using the existing credit risk
management framework and considering economic
uncertainty of the external environment.
The Group has Loans of ¥83,704,675 million, which
represent approximately 37% of total assets, and theReserves for Possible Losses on Loans of ¥575,572
million as of March 31, 2021.
In estimating the reserves for loan losses, the Group uses

We obtained an understanding, evaluated the design andtested the operating effectiveness of the controls over theGroup’s process for establishing the reserves for loan
losses. The controls tested included, but were not limited
to, controls to evaluate and monitor obligor ratings,
controls that evaluate the expected future cash flows used
to determine reserve amounts and controls that evaluate
the adjustments to reflect management’s consideration
including identification of specific loan portfolios where
losses are likely to occur and determination of the method
for adjusting the reserves for loan losses. We performed
the following substantive procedures.
･ We selected a sample of obligors to substantively test
“Forecast for obligors used for assigning internal credit
ratings and for discounted cash flow method” inconsidering both quantitative and qualitative perspective.
Our sample considered various risks, such as the type ofindustry, sector and financial condition of the obligor.
We assessed the obligors’ business performance,
fulfillment of obligation, industry characteristics, businessplan establishment and progress as well as their ability toearn a profit under COVID-19 pandemic and comparedthose to available external sources and made inquiries to139

Independent Auditor’s Reportseveral assumptions. As described in Note 9 “Critical
Accounting Estimates”, the Group considers “Forecast for
obligors used for assigning internal credit ratings and for
discounted cash flow method” and “Forecast of theexternal environment used for making necessary
adjustment to expected loss” as key assumptions.
“Forecast for obligors used for assigning internal credit
ratings and for discounted cash flow method” is based on
the obligors’ business performance, status of obligors’
debt, industry characteristics, business plan establishment
as well as their ability of earning a profit under COVID-19
pandemic.
“Forecast of the external environment used for making
necessary adjustment to expected loss” is based on
macroeconomic scenarios, specifically, the Group
incorporated the estimated impact of COVID-19 pandemic
into macroeconomic scenario by using assumptions suchas anticipated business recovery period by industry andcurrent forecast for the growth rate of gross domestic
product.
These key assumptions used for estimating the reserves
for loan losses involve significant judgment bymanagement and have a significant impact on the financial
statements. Accordingly, we have identified thereasonableness of self-assessment of loans, write-offs andreserve provisions as a key audit matter.

the credit risk management division.
･ In assessing “Forecast of the external environment used
for making necessary adjustment to expected loss”, withsupport of our specialist, we evaluated the
management’s assumption by comparing significant
inputs and underlying data such as growth rate of grossdomestic product and the future prospect of thebusiness environment for each industry with externalsources, when available.

Our strategies forcreating value

As described in Note 43 “Financial Instruments,” the Group
carries various types of over-the-counter derivatives(equity related contracts, interest rate contracts, foreignexchange contracts, and credit-related contracts) for
banking and certain trading activities and for securities
related business at certain subsidiaries.
The Group carried financial instruments at fair value as ofMarch 31, 2021. Among those, derivative assets andliabilities classified within Level 3 of the fair value
hierarchy, which are measured at fair value using
unobservable inputs that are supported by little or nomarket activity, are ¥123,523 million and ¥68,186 million,
respectively.
In calculating fair value of Level 3 derivatives,
management utilizes internally developed valuation models
and unobservable inputs such as correlation between
interest rates and foreign exchange rates and volatility
which is difficult to prove with market data.
These valuation models and unobservable inputs used bymanagement to estimate the fair value of these derivatives
involve significant judgments and have a significant impact
on the fair value of the derivatives.
Accordingly, we have identified the fair value measurementof derivatives classified within Level 3 as a key audit matter.

We obtained an understanding, evaluated the design andtested the operating effectiveness of the controls over theGroup’s derivatives fair valuation processes performed bymiddle-office and back-office. The controls tested included,
but were not limited to, controls over significant inputs
included in the fair value measurements and controls over
the appropriateness of the valuation techniques utilized
within the internally developed valuation models.
We involved our specialists to assist us in performing thefollowing substantive procedures:･ Inspecting the outcome of the Group’s independent priceverification (IPV) process and assessed any issues in
the fair value measurement identified through IPV andevaluated the management judgment.
･ Evaluating significant unobservable inputs by comparing
the inputs with available information we obtained
independently. To select samples, we considered therisks in terms of the degree of subjectivity involved insetting those unobservable inputs as well as thequantitative impact on the fair value measurement･ Evaluating the valuation techniques used by comparing
them with our understanding of market practices, andTesting the mathematical accuracy of the Group’svaluation calculation. To select samples, we consideredrisks associated with the complexity of the valuation
techniques used in addition to the quantitative impact on
the fair value measurements.

140

Foundations for our
corporate value

Auditor’s Response

Data section

Description of Key Audit Matter

Appendix(2) Appropriateness of fair value measurement of derivatives classified within Level 3

Independent Auditor’s Report

About Mizuho

Auditor’s Response

Message from theGroup CFO

Description of Key Audit Matter

Message from theGroup CEO

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2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Independent Auditor’s Report

Responsibilities of Management and the Audit Committee for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements inaccordance with accounting principles generally accepted in Japan, and for such internal control as management
determines is necessary to enable the preparation of consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue
as a going concern and disclosing, as required by accounting principles generally accepted in Japan, matters related togoing concern.
The Audit Committee is responsible for overseeing the Group’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are freefrom material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial
statements.
As part of an audit in accordance with auditing standards generally accepted in Japan, we exercise professional judgment
and maintain professional skepticism throughout the audit. We also:･ Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion.
･ Consider internal control relevant to the audit in order to design audit procedures that are appropriate in thecircumstances for our risk assessments, while the purpose of the audit of the consolidated financial statements is not
expressing an opinion on the effectiveness of the Group’s internal control.
･ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
･ Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on
the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to
draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if suchdisclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going
concern.
･ Evaluate the overall presentation, structure and content of the consolidated financial statements, including thedisclosures, and whether the consolidated financial statements represent the underlying transactions and events in amanner that achieves fair presentation in accordance with accounting principles generally accepted in Japan.
･ Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within
the Group to express an opinion on the consolidated financial statements. We are responsible for the direction,
supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with the Audit Committee regarding, among other matters, the planned scope and timing of the audit andsignificant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the Audit Committee with a statement that we have complied with the ethical requirements regarding
independence that are relevant to our audit of the financial statements in Japan, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with the Audit Committee, we determine those matters that were of most significance inthe audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe
these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Interest Required to Be Disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in the Group which is required to be disclosed
pursuant to the provisions of the Certified Public Accountants Act of Japan.

141

Independent Auditor’s ReportConvenience Translation

About Mizuho

The U.S. dollar amounts in the accompanying consolidated financial statements with respect to the year ended March 31,
2021 are presented solely for convenience. Our audit also included the translation of Japanese yen amounts into U.S.
dollar amounts and, in our opinion, such translation has been made on the basis described in Note 1 to the consolidated
financial statements.

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Ernst & Young ShinNihon LLC
Tokyo, Japan

Message from theGroup CFO

June 22, 2021

Our strategies forcreating value

Ryuji Takagi
Designated Engagement Partner
Certified Public Accountant

Foundations for our
corporate value

Toru Nakagiri
Designated Engagement Partner
Certified Public Accountant

Data section

Shinichi Hayashi
Designated Engagement Partner
Certified Public Accountant

Appendix

Mitsuhiro Nagao
Designated Engagement Partner
Certified Public Accountant

142

Independent Auditor’s Report

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Balance Sheet
Millions of yen
2021

As of March 31,

AssetsCash and Due from Banks (Notes 19, 41, 43 and 44)
Call Loans and Bills Purchased (Note 43)
Receivables under Resale Agreements (Note 43)
Guarantee Deposits Paid under Securities Borrowing Transactions(Note 43)
Other Debt Purchased (Notes 43 and 44)
Trading Assets (Notes 12, 19, 43 and 44)
Money Held in Trust (Notes 43 and 44)
Securities (Notes 11, 13, 19, 28, 43 and 44)
Loans and Bills Discounted (Notes 14, 19 and 43)
Foreign Exchange Assets (Note 15)
Derivatives other than for Trading Assets (Notes 43 and 45)
Other Assets (Notes 16, 19 and 44)
Tangible Fixed Assets (Notes 17, 30 and 42)
Intangible Fixed Assets (Note 42)
Net Defined Benefit Asset (Note 27)
Deferred Tax Assets (Note 29)
Customers' Liabilities for Acceptances and Guarantees (Note 28)
Reserves for Possible Losses on Loans (Notes 18 and 43)
Reserve for Possible Losses on Investments
Total Assets

143

Consolidated Balance Sheet¥

47,981,981 ¥
589,776
11,623,654

2020

41,069,745
584,686
18,581,488

2,707,711
2,243,161
3,208,004
2,688,273
12,589,294
13,248,734
582,368
411,847
43,697,262
34,907,234
83,704,675
83,468,185
2,084,756
2,044,415
1,719,349
1,944,060
6,174,020
5,206,121
1,135,449
1,103,622
620,224
636,139
1,109,107
846,782
31,40232,4936,602,744
6,066,527(575,572)(424,446)―(0)¥ 225,586,211 ¥ 214,659,077

Thousands of
U.S. dollars (Note 1)
2021$

433,363,270
5,326,737
104,982,433

24,455,484
28,974,027
113,703,888
5,259,834
394,664,583
756,003,209
18,829,084
15,528,811
55,762,466
10,255,148
5,601,741
10,017,232
283,61759,634,617(5,198,454)(8)$ 2,037,447,719

8,653,801

2,105,067
411,089
8,115,377
9,604,890
7,441,822
5,209,947
532,042
509,405
456,045
373,658
10,321,672
8,906,432
1,160,608
1,055,510
1,739,671
1,619,151
5,862,013
6,111,195
104,13175,1752,935
2,559
71,04962,113
683
944
1,074
637
6,762
6,443
22,09927,851
14,41918,6723,135
2,509
215,557
53,15061,91562,695
6,602,744
6,066,527¥ 216,224,003 ¥ 205,995,229

19,012,533
73,296,404
67,212,992
4,805,293
4,118,912
93,223,197
10,482,372
15,712,349
52,944,483
940,498
26,511
641,700
6,176
9,707
61,074
199,598
130,236
28,321
1,946,869
559,21059,634,617$ 1,952,890,206¥$

2,256,767 ¥
1,135,940
4,421,655(7,124)
7,807,239
1,132,460
31,618136,384(139,514)
288,088
1,449,035

Stock Acquisition Rights (Note 32)

134

2,256,767
1,136,467
4,174,190(6,414)
7,561,010
823,085
72,081
136,655(133,178)
94,317
992,960
213

20,382,655
10,259,581
39,935,476(64,348)
70,513,364
10,228,144
285,569
1,231,793(1,260,069)
2,601,952
13,087,389
1,217

Non-controlling Interests

105,797

109,662955,543

Total Net Assets

9,362,207

8,663,847

84,557,513¥ 225,586,211 ¥ 214,659,077$ 2,037,447,719

Total Liabilities and Net Assets

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

144

Consolidated Balance Sheet

About Mizuho

1,108,255

Appendix

958,148

Message from theGroup CFO

$ 1,359,329,648
11,856,848
168,056,857

Our strategies forcreating value¥ 150,504,978 ¥ 144,472,235
1,312,790
2,263,076
18,607,255
17,971,098

As of March 31,

Liabilities and Net Assets
Liabilities
Deposits (Notes 19, 20 and 43)
Call Money and Bills Sold (Notes 21 and 43)
Payables under Repurchase Agreements (Notes 19 and 43)
Guarantee Deposits Received under Securities Lending
Transactions (Notes 19 and 43)
Commercial Paper (Note 22)
Trading Liabilities (Notes 12 and 43)
Borrowed Money (Notes 19, 23 and 43)
Foreign Exchange Liabilities (Note 15)
Short-term Bonds (Note 24)
Bonds and Notes (Notes 25 and 43)
Due to Trust Accounts (Note 43)
Derivatives other than for Trading Liabilities (Notes 43 and 45)
Other Liabilities (Note 26)
Reserve for Bonus Payments
Reserve for Variable Compensation
Net Defined Benefit Liability (Note 27)
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
Deferred Tax Liabilities (Note 29)
Deferred Tax Liabilities for Revaluation Reserve for Land (Note 30)
Acceptances and Guarantees (Note 28)
Total Liabilities
Net Assets
Common Stock (Note 31)
Capital Surplus
Retained Earnings
Treasury Stock (Note 31)
Total Shareholders' Equity
Net Unrealized Gains (Losses) on Other Securities (Note 44)
Deferred Gains or Losses on Hedges
Revaluation Reserve for Land (Note 30)
Foreign Currency Translation Adjustments
Remeasurements of Defined Benefit Plans (Note 27)
Total Accumulated Other Comprehensive Income

Foundations for our
corporate value

2020

Thousands of
U.S. dollars (Note 1)
2021

Millions of yen
2021

Data section

Consolidated Balance Sheet—(Continued)

Message from theGroup CEO

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2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Statement of Income
Millions of yen
2021

For the Fiscal Years ended March 31,

IncomeInterest Income (Note 33)
Fiduciary Income
Fee and Commission Income
Trading Income (Note 34)
Other Operating Income (Note 35)
Other Income (Note 37)
Total Income
Expenses
Interest Expenses (Note 33)
Fee and Commission Expenses
Trading Expenses (Note 34)
Other Operating Expenses (Note 36)
General and Administrative Expenses
Other Expenses (Note 38)
Total Expenses

2020

Thousands of
U.S. dollars (Note 1)
2021¥ 1,333,509
55,160843,953
388,441
358,254
380,978
3,360,298¥ 2,014,440
58,565
778,842406,539
412,114
318,438
3,988,940

427,826
156,805311
195,683
1,414,608
512,900
2,708,135

1,280,897
159,598
15,239152,547
1,378,398
383,542
3,370,223

3,864,037
1,416,231
2,813
1,767,370
12,776,451
4,632,410
24,459,312

Income before Income Taxes
Income Taxes:
Current
Deferred
Total Income Taxes

652,163

618,717

5,890,204

165,688
9,099
174,788

150,088
11,408161,496

1,496,462
82,188
1,578,650

Profit477,375

457,221

4,311,554

Profit Attributable to Non-controlling Interests
Profit Attributable to Owners of Parent

6,355
¥

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

145

Consolidated Statement of Income

471,020

$

8,652
¥

448,568

12,043,983
498,194
7,622,408
3,508,327
3,235,683
3,440,921
30,349,516

57,398$4,254,156

¥

185.75185.7541.25¥

176.87176.86
75.0

U.S. dollars (Note 1)
2021

$

1.68
1.68
0.37

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements (Note 48).

Consolidated Statement of Comprehensive Income
Millions of yen
2021

For the Fiscal Years ended March 31,

ProfitOther Comprehensive Income (Note 39):
Net Unrealized Gains (Losses) on Other Securities
Deferred Gains or Losses on Hedges
Foreign Currency Translation Adjustments
Remeasurements of Defined Benefit Plans
Share of Other Comprehensive Income of Associates
Accounted for Using Equity Method
Comprehensive Income
Comprehensive Income Attributable to Owners of Parent:
Comprehensive Income Attributable to Non-controlling Interests:¥¥¥

477,375
454,513305,969(40,294)(1,874)
187,7442,968
931,888
927,366
4,522

¥

¥
¥

2020

Thousands of
U.S. dollars (Note 1)
2021

457,221(449,547)(359,779)
94,536(20,650)(157,693)$ 4,311,554
4,105,070
2,763,451(363,933)(16,932)
1,695,670(5,961)
7,673(3,123)
10,797

26,814$ 8,416,624$ 8,375,778
40,846

Appendix

Data section

Foundations for our
corporate value

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

About Mizuho

Net Income:
Basic
DilutedCash Dividends

2020

Message from theGroup CFO

Yen
2021

As of March 31,

Our strategies forcreating value

Per Share of Common Stock

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

146

Per Share of Common Stock、Consolidated Statement of Comprehensive Income

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Statement of Changes in Net Assets
Millions of yen
Shareholders' Equity

For the Fiscal Year ended
March 31, 2021

Balance as of the beginningof the period
Cumulative Effects of
Changes in
Accounting Policies
Balance as of the beginningof the period reflecting
Changes in Accounting
Policies

CapitalSurplusRetained
Earnings

Treasury
Stock

Total
Shareholders'Equity¥ 2,256,767 ¥ 1,136,467¥ 4,174,190¥ (6,414)¥ 7,561,010

CommonStock(32,639)2,256,767

1,136,467

4,141,550(32,639)(6,414)

7,528,370

Changes during the period
Cash Dividends
Profit Attributable to Ownersof Parent
Repurchase of Treasury
Stock
Disposition of Treasury
Stock
Transfer from Revaluation
Reserve for Land
Change in Treasury Sharesof Parent Arising fromTransactions with Noncontrolling Shareholders(190,418)

471,020

471,020(99)(2,545)(2,545)

1,835

1,736

271

271

(526)

Decrease in retained
earnings by increasing ofequity method affiliates
Transfer from Retained
Earnings to Capital Surplus
Net Changes in Items otherthan Shareholders' Equity
Total Changes during theperiodBalance as of the end of theperiod(190,418)

(526)

(668)

(668)

99

(99)

―

(526)

280,105(709)

278,869¥ 2,256,767 ¥ 1,135,940¥ 4,421,655¥ (7,124)¥ 7,807,239―

See accompanying “Notes to Consolidated Financial Statements ,” which are an integral part of these statements (Note 40).

147

Consolidated Statement of Changes in Net Assets

Millions of yen
Accumulated Other Comprehensive Income

823,085¥ 72,081

Foreign
Currency
Translation
Adjustments¥ 136,655¥ (133,178)

Remeasurements ofDefinedBenefit Plans¥

94,317

Stock
Total
Accumulated Acquisition
Rights
Other
Comprehensive
Income¥992,960

NonControlling
Interests

Total
Net Assets¥ 213 ¥ 109,662¥ 8,663,847―

823,085

72,081

136,655(133,178)

94,317

992,960(32,639)

213

109,6628,631,208

Changes during the period
Cash Dividends(190,418)

Profit Attributable to Ownersof Parent
Repurchase of Treasury
Stock
Disposition of Treasury
Stock
Transfer from Revaluation
Reserve for Land
Change in Treasury Sharesof Parent Arising fromTransactions with Noncontrolling Shareholders

471,020(2,545)
1,736
271

(526)

Decrease in retained
earnings by increasing ofequity method affiliates
Transfer from Retained
Earnings to Capital Surplus
Net Changes in Items otherthan Shareholders' Equity
Total Changes during theperiodBalance as of the end of theperiodMessage from theGroup CFO¥

Hedges

Revaluation
Reserve for
Land

(668)

―
309,374(40,463)(271)(6,336)

193,770456,074(79)(3,865)452,130

309,374(40,463)(271)(6,336)

193,770456,074(79)(3,865)730,999¥ 1,132,460¥ 31,618¥ 136,384¥ (139,514)¥ 288,088¥ 1,449,035¥ 134 ¥ 105,797¥ 9,362,207

Appendix

Data section

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements (Note 40).

Our strategies forcreating value

Balance as of the beginningof the period
Cumulative Effects of
Changes in
Accounting Policies
Balance as of the beginningof the period reflecting
Changes in Accounting
Policies

Deferred
Gains or
Losses on

Foundations for our
corporate value

For the Fiscal Year ended
March 31, 2021

Net
Unrealized
Gains(Losses) on
Other
Securities

About Mizuho

Consolidated Statement of Changes in Net Assets—(Continued)

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

148

Consolidated Statement of Changes in Net Assets

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Statement of Changes in Net Assets—(Continued)
Millions of yen
Shareholders' Equity

For the Fiscal Year ended
March 31, 2020

Balance as of the beginningof the period

CapitalSurplusRetained
Earnings

Treasury
Stock

Total
Shareholders'Equity¥ 2,256,767 ¥ 1,138,449¥ 3,915,521¥ (7,703)¥ 7,303,034

CommonStock

Changes during the period
Cash Dividends
Profit Attributable to Ownersof Parent
Repurchase of Treasury
Stock
Disposition of Treasury
Stock
Transfer from Revaluation
Reserve for Land
Change in Treasury Sharesof Parent Arising fromTransactions with Noncontrolling Shareholders
Transfer from Retained
Earnings to Capital Surplus
Net Changes in Items otherthan Shareholders' Equity
Total Changes during theperiodBalance as of the end of theperiod(190,405)(190,405)

448,568

448,568(625)(1,908)(1,908)

3,197

2,571

1,117

1,117

(1,968)(1,968)

611

(611)

(1,981)

258,668

1,288

257,975¥ 2,256,767 ¥ 1,136,467¥ 4,174,190¥ (6,414)¥ 7,561,010――

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements (Note 40).

149

Consolidated Statement of Changes in Net Assets

Millions of yen
Accumulated Other Comprehensive Income¥ 1,186,401

Hedges¥ (22,282)

Revaluation
Reserve forLand

Foreign
Currency
Translation
Adjustments

Remeasurements ofDefinedBenefit Plans¥ 137,772¥ (111,057)¥ 254,936

Stock
Total
Accumulated Acquisition
Rights
Other
Comprehensive
Income¥ 1,445,770

NonControlling
Interests

Total
Net Assets¥ 707 ¥ 444,525¥ 9,194,038

Changes during the period
Cash Dividends
Profit Attributable to Ownersof Parent
Repurchase of Treasury
Stock
Disposition of Treasury
Stock
Transfer from Revaluation
Reserve for Land
Change in Treasury Sharesof Parent Arising fromTransactions with Noncontrolling Shareholders
Transfer from Retained
Earnings to Capital Surplus
Net Changes in Items otherthan Shareholders' Equity
Total Changes during theperiodBalance as of the end of theperiod(190,405)
448,568(1,908)
2,571
1,117

(1,968)―¥(363,316)

94,364(1,117)(22,120)(160,619)(452,809)(493)(334,862)(788,165)(363,316)

94,364(1,117)(22,120)(160,619)(452,809)(493)(334,862)(530,190)

823,085¥ 72,081¥ 136,655¥ (133,178)

992,960¥ 213 ¥ 109,662¥ 8,663,847¥

94,317¥

Appendix

Data section

Foundations for our
corporate value

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements (Note 40).

Message from theGroup CFO

Balance as of the beginningof the period

Deferred
Gains or
Losses on

Our strategies forcreating value

For the Fiscal Year ended
March 31, 2020

Net
Unrealized
Gains(Losses) on
Other
Securities

About Mizuho

Consolidated Statement of Changes in Net Assets—(Continued)

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

150

Consolidated Statement of Changes in Net Assets

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Statement of Changes in Net Assets—(Continued)
Thousands of U.S. dollars (Note 1)
Shareholders' Equity

For the Fiscal Year ended
March 31, 2021

Balance as of the beginningof the period
Cumulative Effects of
Changes in
Accounting Policies
Balance as of the beginningof the period reflecting
Changes in Accounting
Policies

CommonStockCapitalSurplusRetained
Earnings

Treasury
Stock

Total
Shareholders'Equity$ 20,382,655 $ 10,264,340 $ 37,700,417$ (57,939) $ 68,289,473(294,797)(294,797)

20,382,655

10,264,340

37,405,620(57,939)

67,994,676

Changes during the period
Cash Dividends
Profit Attributable to Ownersof Parent
Repurchase of Treasury
Stock
Disposition of Treasury
Stock
Transfer from Revaluation
Reserve for Land
Change in Treasury Sharesof Parent Arising fromTransactions with Noncontrolling Shareholders(1,719,816)

4,254,156

4,254,156(899)(22,988)(22,988)

16,57915,680

2,449

2,449

(4,759)Decrease in retained
earnings by increasing ofequity method affiliates
Transfer from Retained
Earnings to Capital Surplus
Net Changes in Items otherthan Shareholders' Equity
Total Changes during theperiodBalance as of the end of theperiod(1,719,816)―(4,759)(6,034)(6,034)

899

(899)

―

(4,759)2,529,856$ 20,382,655 $ 10,259,581 $ 39,935,476(6,409)2,518,688$ (64,348) $ 70,513,364

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements (Note 40).

151

Consolidated Statement of Changes in Net Assets

Thousands of U.S. dollars (Note 1)
Accumulated Other Comprehensive Income$ 7,433,934$ 651,030$ 1,234,242 $ (1,202,843)

Foreign
Currency
Translation
Adjustments

Total
RemeasureStockments ofAccumulated Acquisition
DefinedOther
RightsBenefit Comprehensive
Plans
IncomeNonControlling
Interests$ 851,854 $ 8,968,217$ 990,452 $ 78,250,073$ 1,931―7,433,934

651,030

1,234,242(1,202,843)

851,854

8,968,217

Total
Net Assets(294,797)

1,931

990,452

77,955,276

Changes during the period
Cash Dividends(1,719,816)

Profit Attributable to Ownersof Parent
Repurchase of Treasury
Stock
Disposition of Treasury
Stock
Transfer from Revaluation
Reserve for Land
Change in Treasury Sharesof Parent Arising fromTransactions with Noncontrolling Shareholders

4,254,156(22,988)
15,6802,449(4,759)Decrease in retained
earnings by increasing ofequity method affiliates
Transfer from Retained
Earnings to Capital Surplus
Net Changes in Items otherthan Shareholders' Equity
Total Changes during theperiodBalance as of the end of theperiodMessage from theGroup CFO

Revaluation
Reserve forLand(6,034)―
2,794,210(365,461)(2,449)(57,226)

1,750,098

4,119,172(714)(34,909)

4,083,549

2,794,210(365,461)(2,449)(57,226)

1,750,098

4,119,172(714)(34,909)6,602,237$ 10,228,144$ 285,569$ 2,601,952 $ 13,087,389$ 1,217$ 1,231,793 $ (1,260,069)$ 955,543 $ 84,557,513

Appendix

Data section

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements (Note 40).

Our strategies forcreating value

Balance as of the beginningof the period
Cumulative Effects of
Changes in
Accounting Policies
Balance as of the beginningof the period reflecting
Changes in Accounting
Policies

Deferred
Gains or
Losses on
HedgesFoundations for our
corporate value

For the Fiscal Year ended
March 31, 2021

Net
Unrealized
Gains(Losses) on
Other
Securities

About Mizuho

Consolidated Statement of Changes in Net Assets—(Continued)

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

152

Consolidated Statement of Changes in Net Assets

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Statement of Cash Flows
Millions of yen
2021

For the Fiscal Years ended March 31,

Cash Flow from Operating Activities
Income before Income Taxes
Depreciation
Losses on Impairment of Fixed Assets
Amortization of Goodwill
Equity in Loss (Gain) from Investments in Affiliates
Increase (Decrease) in Reserves for Possible Losses on Loans
Increase (Decrease) in Reserve for Possible Losses on
Investments
Increase (Decrease) in Reserve for Possible Losses on Salesof Loans
Increase (Decrease) in Reserve for Contingencies
Increase (Decrease) in Reserve for Bonus Payments
Increase (Decrease) in Reserve for Variable Compensation
Decrease (Increase) in Net Defined Benefit Asset
Increase (Decrease) in Net Defined Benefit Liability
Increase (Decrease) in Reserve for Director and Corporate
Auditor Retirement Benefits
Increase (Decrease) in Reserve for Reimbursement of Deposits
Increase (Decrease) in Reserve for Reimbursement ofDebentures
Interest Income—accrual basis
Interest Expenses—accrual basis
Losses (Gains) on Securities
Losses (Gains) on Money Held in Trust
Foreign Exchange Losses (Gains)—net
Losses (Gains) on Disposition of Fixed Assets
Losses (Gains) on Revision of Retirement Benefit Plan
Losses (Gains) on Cancellation of Employee Retirement Benefit
Trust
Decrease (Increase) in Trading Assets
Increase (Decrease) in Trading Liabilities
Decrease (Increase) in Derivatives other than for Trading Assets
Increase (Decrease) in Derivatives other than for Trading
Liabilities
Decrease (Increase) in Loans and Bills Discounted
Increase (Decrease) in Deposits
Increase (Decrease) in Borrowed Money (excluding
Subordinated Borrowed Money)
Decrease (Increase) in Due from Banks (excluding Due fromCentral Banks)
Decrease (Increase) in Call Loans, etc.
Decrease (Increase) in Guarantee Deposits Paid under
Securities Borrowing Transactions
Increase (Decrease) in Call Money, etc.
Increase (Decrease) in Commercial Paper
Increase (Decrease) in Guarantee Deposits Received under
Securities Lending Transactions
Decrease (Increase) in Foreign Exchange Assets
Increase (Decrease) in Foreign Exchange Liabilities
Increase (Decrease) in Short-term Bonds (Liabilities)
Increase (Decrease) in Bonds and Notes

153

Consolidated Statement of Cash Flows¥¥

652,163
163,231
12,793
3,743(19,912)143,127¥

2020

618,717
152,666
15,224
4,062(30,382)
139,940

Thousands of
U.S. dollars (Note 1)
2021$

5,890,204
1,474,276
115,547
33,809(179,847)
1,292,698

0

―

8

437
1,564
27,295375
86,807
(869)

6
1,793
8,611
(307)
(91,950)
2,590

3,948
14,130246,525
3,391
784,023(7,857)

(260)

(439)

(2,351)(5,751)

8,782(51,948)(4,253)(6,893)(38,413)(1,333,509)
427,826(49,071)(1,647)(173,635)
6,576(58,855)(2,014,440)
1,280,897(231,382)(121)
103,125
3,898―(12,043,983)
3,864,037(443,208)(14,879)(1,568,238)
59,396(531,574)(76,996)―(695,418)

1,188,511(2,021,852)
308,891(1,435,994)
1,488,005(638,977)

10,734,385(18,260,955)
2,789,843

36,977475,833

333,975

1,355,723
4,239,233(5,967,287)
8,099,383

12,244,611
38,287,874

2,191,633

2,165,756

19,794,377

239,094
6,873,070(365,564)(5,758,002)

2,159,455
62,076,143(464,549)

334,971(4,195,715)(812,714)
1,686,839

3,128,355(511,609)(7,340,267)
15,235,180(150,107)(376,328)(1,355,735)

43,75418,92382,387
1,187,520(106,795)(159,598)
18,119308,937

395,185
170,915
744,109
10,725,438

¥

$

¥

2020

(46,563)2,047,339(1,315,446)
650,590
1,999,524(97,631)
1,901,893$

949,220
13,042,042(4,481,952)(245,257)
152,007,147(1,959,862)
150,047,285(97,434,015)
51,925,747
36,114,600(183,852)
14,515(107,392)(108,812)
13,61844(72,474,752)
48,136,966
18,815,661(78,650)
18,523(85,840)(151,011)
6,353
3,144

(880,003,755)
468,982,544
326,179,554(1,660,515)
131,102(969,948)(982,774)
123,003406

1,799(9,763,746)

1,067(5,808,537)

16,255(88,184,128)

45,000―555,000(360,000)
2,988
(627)
(190,497)(4,676)15,000(30,000)
483,000(213,000)
2,883(303,000)(190,386)(9,568)406,431―
5,012,644(3,251,445)
26,996(5,666)(1,720,537)(42,238)―(4,653)

―

40

―

369

(1,848)854(5,414)40,819(1,441)
1,516(32,199)(281,849)(16,699)
7,714(48,900)
368,669

227,487
7,117,795(202,776)(4,391,269)

2,054,619
64,286,445

39,863,604

44,254,874

360,039,782

―

(0)

―

46,981,399¥ 39,863,604$ 424,326,227

Cash Flow from Financing Activities
Proceeds from Subordinated Borrowed Money
Repayments of Subordinated Borrowed Money
Proceeds from Issuance of Subordinated Bonds
Payments for Redemption of Subordinated Bonds
Proceeds from Investments by Non-controlling Shareholders
Repayments to Non-controlling Shareholders
Cash Dividends Paid
Cash Dividends Paid to Non-controlling Shareholders
Payments for Purchase of Stocks of Subsidiaries (not affecting
the scope of consolidation)
Proceeds from Sale of Stocks of Subsidiaries (not affecting thescope of consolidation)
Payments for Repurchase of Treasury Stock
Proceeds from Sale of Treasury Stock
Paymenys for Repurchase of Treasury Stock of Subsidiaries
Net Cash Provided by (Used in) Financing Activities
Effect of Foreign Exchange Rate Changes on Cash and Cash
Equivalents
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at the beginning of the fiscal year
Decrease in Cash and Cash Equivalents resulting from
Exclusion of Subsidiaries from Consolidation
Cash and Cash Equivalents at the end of the fiscal year (Note41)¥

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

154

Consolidated Statement of Cash Flows

About Mizuho

105,097
1,444,014(496,241)(27,154)
16,830,231(216,995)
16,613,235

Message from theGroup CFO¥

Our strategies forcreating value

Increase (Decrease) in Due to Trust Accounts
Interest and Dividend Income—cash basis
Interest Expenses—cash basis
Other—net
Subtotal
Cash Refunded (Paid) in Income Taxes
Net Cash Provided by (Used in) Operating Activities
Cash Flow from Investing Activities
Payments for Purchase of Securities
Proceeds from Sale of Securities
Proceeds from Redemption of Securities
Payments for Increase in Money Held in Trust
Proceeds from Decrease in Money Held in Trust
Payments for Purchase of Tangible Fixed Assets
Payments for Purchase of Intangible Fixed Assets
Proceeds from Sale of Tangible Fixed Assets
Proceeds from Sale of Intangible Fixed Assets
Proceeds from Sales of Stocks of Subsidiaries (affecting thescope of consolidation)
Net Cash Provided by (Used in) Investing Activities

Foundations for our
corporate value

For the Fiscal Years ended March 31,

Thousands of
U.S. dollars (Note 1)
2021

Data section

Millions of yen
2021

Appendix

Consolidated Statement of Cash Flows—(Continued)

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

1. Basis for Presentation
The accompanying consolidated financial statements have been prepared from the accounts maintained by Mizuho
Financial Group, Inc. (“MHFG”) and its consolidated subsidiaries in accordance with the provisions set forth in the Company
Law of Japan and the Financial Instruments and Exchange Law, and in conformity with accounting principles generally
accepted in Japan (“Japanese GAAP”) which are different in certain respects from the application and disclosure
requirements of International Financial Reporting Standards.
Certain items presented in the consolidated financial statements which were previously filed with the Director General of
the Kanto Local Finance Bureau are reclassified for the convenience of readers outside Japan. The notes to theconsolidated financial statements include information which is not required under Japanese GAAP but is presented herein
as additional information.
The amounts indicated in millions of yen are rounded down by truncating the figures below one million. Totals may not
add up exactly because of such truncation. Amounts in U.S. dollars are included solely for the convenience of readers
outside Japan. The rate of ¥110.72=US$1.00, the foreign exchange rate on March 31, 2021 has been used for translation.
The inclusion of such amounts is not intended to imply that Japanese yen has been or could be readily converted, realized
or settled into U.S. dollars at that rate or any other rate.

2. Scope of Consolidation(a) The consolidated financial statements include the accounts of MHFG and its consolidated subsidiaries (collectively, “theGroup”), including Mizuho Bank, Ltd. (“MHBK”), Mizuho Trust & Banking Co., Ltd. (“MHTB”), Mizuho Securities Co., Ltd.
(“MHSC”) and certain other subsidiaries. The numbers of consolidated subsidiaries as of March 31, 2021 and 2020 were
160 and 126, respectively.
During the period, Mizuho After Corona Business Succession Assist Fund Limited Partnership and 58 othercompanies were newly included in the scope of consolidation as a result of establishment.
During the period, Mizuho Capital Partners Co.,Ltd. and 24 other companies were excluded from the scope of
consolidation as a result of decreasing the shares and other factors.
(b) There were no non-consolidated subsidiaries as of March 31, 2021 and 2020.

3. Application of the Equity Method(a) There were no non-consolidated subsidiaries under the equity method as of March 31, 2021 and 2020.
(b) The numbers of affiliates under the equity method as of March 31, 2021 and 2020 were 28 and 26, respectively.
Investments in affiliates include Custody Bank of Japan, Ltd., Orient Corporation, Mizuho Leasing Company, Limited
and certain other affiliates.
During the period, PayPay Securities Corporation and 3 other companies were newly included in the scope of the equity
method as a result of increasing the shares and other factors.
During the period, JTC Holdings, Ltd. and another company were excluded from the scope of the equity method as aresult of merger.
(c) There were no non-consolidated subsidiaries not under the equity method as of March 31, 2021 and 2020.
(d) Pec International Leasing Co., Ltd. ,an affiliate not under the equity method, is not accounted for under the equity
method, as it is not significant to the consolidated financial statements of MHFG.

155

Basis for Presentation、Scope of Consolidation、Application of the Equity Method

(a) Balance sheet dates of consolidated subsidiaries for the fiscal year ended March 31, 2021 are as follows:
July 31
1 company
December 31
39 companies
March 31
120 companies(b) The consolidated subsidiary with balance sheet dates of July 31 was consolidated based on its tentative financial
statement as of and for the period ended the consolidated balance sheet date.
Other consolidated subsidiaries were consolidated based on their financial statements as of and for the period ended
their respective balance sheet dates.
The necessary adjustments have been made to the financial statements for any significant transactions that took
place between their respective balance sheet dates and the date of the consolidated financial statements.

About Mizuho

4. Balance Sheet Dates of Consolidated Subsidiaries

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In accordance with “Accounting Standard for Financial Instruments” (the Business Accounting Deliberation Council,
January 22, 1999), MHFG classifies securities, excluding those of investments in non-consolidated subsidiaries andaffiliates, into three categories based upon management's intent. These securities are accounted for as follows:(i) Trading securities are carried at market value and included in Trading Assets.
(ii) Bonds held to maturity are stated at amortized cost (straight-line method) and determined by the moving averagemethod.
(iii) Other securities are securities which are not classified as either trading securities or bonds held to maturity. Other
securities 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. The net unrealized gains (losses) on Other securities are included directly in Net Assets, net of
applicable income taxes after excluding gains and losses as a result of the fair-value hedge method.
In addition, investments in affiliates not under the equity method are stated at acquisition cost as determined by themoving average method.

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Balance Sheet Dates of Consolidated Subsidiaries、Standards of Accounting Method

Our strategies forcreating value

Trading transactions intended to take advantage of short-term fluctuations and arbitrage opportunities in interest rates,
currency exchange rates, market prices of securities and related indices are recognized on a trade-date basis andrecorded in Trading Assets or Trading Liabilities on the consolidated balance sheet. Income or expenses generated on
the relevant trading transactions are recorded in Trading Income or Trading Expenses on the consolidated statement ofincome.
Securities and other monetary claims held for trading purposes are stated at fair value at the consolidated balance
sheet date. Derivative financial products, such as swaps, futures and option transactions, are stated at their fair values,
assuming that such transactions are terminated and settled at the consolidated balance sheet date.
Trading Income and Trading Expenses include the interest received and paid during the fiscal year, the gains orlosses resulting from any change in the value of securities and other monetary claims between the beginning and theend of the fiscal year, and the gains or losses resulting from any change in the value of financial derivatives between the
beginning and the end of the fiscal year, assuming they were settled at the end of the fiscal year.
For financial derivatives, fair value is calculated on the basis of net assets or liabilities after offsetting financial assets
and liabilities with respect to specific market risks and specific credit risk.

Foundations for our
corporate value(2)Trading Assets & Liabilities and Trading Income & Expenses

Data section

Credited loans held for the purpose of trading are, in line with trading securities, recognized on a trade date basis andrecorded in Other Debt Purchased on the consolidated balance sheet. Other Debt Purchased related to the relevant
credited loans is stated at fair value at the consolidated balance sheet date.
Interest received and the gains or losses on the sale of the relevant credited loans during the fiscal year, including thegains or losses resulting from any change in the value between the beginning and the end of the fiscal year, arerecognized in Other Operating Income and Other Operating Expenses on the consolidated statement of income.

Appendix(1) Credited Loans pursuant to Trading Securities and Trading Income & Expenses

Message from theGroup CFO

5. Standards of Accounting Method

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Securities which are held as trust assets in Money Held in Trust accounts are valued in the same way as Securities
above.
Certain Securities other than Trading Securities (excluding Stocks and others without a quoted market price andInvestments in Partnerships) are devalued to the fair value, and the difference between the acquisition cost and the fairvalue is treated as a loss for the fiscal year (“impairment (devaluation)”), if the fair value (primarily the closing market
price at the consolidated balance sheet date) has significantly deteriorated compared with the acquisition cost (including
amortized cost), and unless it is deemed that there is a possibility of a recovery in the fair value. The amounts of
impairment (devaluation) were ¥4,657 million ($42,062 thousand) and ¥41,655 million for the fiscal years ended March
31, 2021 and 2020, respectively.
The criteria for determining whether a security's fair value has “significantly deteriorated” are outlined as follows:• Security whose fair value is 50% or less of the acquisition cost
• Security whose fair value exceeds 50% but is 70% or less of the acquisition cost and the quoted market pricemaintains a certain level or lower(4) Bills Discounted
In accordance with “Accounting and Auditing Treatment relating to Adoption of Accounting Standards for Financial
Instruments for Banks” (The Japanese Institute of Certified Public Accountants (“JICPA”) Industry Committee Practical
Guideline No. 24), bills discounted are accounted for as financing transactions. The banking subsidiaries have rights tosell or pledge these commercial bills, foreign exchange bills purchased and others. The face value of these bills
amounted to ¥1,614,811 million ($14,584,639 thousand) and ¥1,341,367 million as of March 31, 2021 and 2020,
respectively.

(5) Derivative Transactions
Derivative transactions are valued at fair value with changes in fair value included in current income. Fair value iscalculated on the basis of net assets or liabilities after offsetting financial assets and liabilities with respect to specificmarket risks and specific credit risk. Derivatives qualifying as hedges are mainly accounted for using either the fair-value
hedge method or the deferred method of hedge accounting (see (22) Hedge Accounting).

(6) Tangible Fixed Assets (Except for Lease Assets)
Depreciation of buildings is computed mainly by the straight-line method, and that of others is computed mainly by the
declining-balance method. The range of useful lives is as follows:
Buildings 3 years to 50 years
Others 2 years to 20 years(7) Intangible Fixed Assets (Except for Lease Assets)
Amortization of Intangible Fixed Assets is computed by the straight-line method. Development costs for internally-usedsoftware are capitalized and amortized over their estimated useful lives of mainly from five to ten years as determinedby MHFG and its consolidated subsidiaries.

(8) Lease Assets
Depreciation of lease assets booked in Tangible Fixed Assets and Intangible Fixed Assets which are concerned withfinance lease transactions that do not transfer ownership is mainly computed by the same method as the one applied to
fixed assets owned by us.

(9) Deferred Assets
Bond issuance costs are expensed as incurred.

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(11) Reserve for Possible Losses on Investments
Reserve for Possible Losses on Investments is maintained to provide against possible losses on investments insecurities, after taking into consideration the financial condition and other factors concerning the investee company.

(12) Reserve for Bonus Payments
Reserve for Bonus Payments, which is provided for future bonus payments to employees, is maintained at the amountaccrued at the end of the fiscal year, based on the estimated future payments.

About Mizuho
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Foundations for our
corporate value

Reserves for Possible Losses on Loans of major domestic consolidated subsidiaries are maintained in accordance withinternally established standards for write-offs and reserve provisions:• For claims extended to obligors that are legally bankrupt under the Bankruptcy Law, Special Liquidation under theCompany Law or other similar laws (“Bankrupt Obligors”), and to obligors that are effectively in similar conditions(“Substantially Bankrupt Obligors”), reserves are maintained at the amounts of claims net of direct write-offs described
below and the expected amounts recoverable from the disposition of collateral and the amounts recoverable underguarantees.
• For claims extended to obligors that are not yet legally or formally bankrupt but are likely to be bankrupt (“Intensive
Control Obligors”), reserves are maintained at the amounts deemed necessary based on overall solvency analyses of
the amounts of claims net of expected amounts recoverable from the disposition of collateral and the amounts
recoverable under guarantees.
• For claims extended to Intensive Control Obligors and Obligors with Restructured Loans (defined in Note 14 below)
and others, if the exposure to an obligor exceeds a certain specific amount, reserves are provided as follows:(i) if future cash flows of the principal and interest can be reasonably estimated, the discounted cash flow method isapplied, under which the reserve is determined as the difference between the book value of the loan and its present
value of future cash flows discounted using the contractual interest rate before the loan was classified as a
Restructured Loan, and(ii) if future cash flows of the principal and interest cannot be reasonably estimated, reserves are provided for thelosses estimated for each individual loan.
• For claims extended to other obligors, reserves for the next one year or three years are maintained at rates derived
from historical credit loss experience or historical bankruptcy experience for one or three years and making necessary
adjustments such as future prospects and others.
• Reserve for Possible Losses on Loans to Restructuring Countries is maintained in order to cover possible losses
based on analyses of the political and economic climates of the countries. All claims are assessed by each claim
origination department in accordance with the internally established “Self-assessment Standard,” and the results of theassessments are verified and examined by the independent examination departments.
In the case of claims to Bankrupt Obligors and Substantially Bankrupt Obligors, which are collateralized or guaranteed
by a third party, the amounts deemed uncollectible (calculated by deducting the anticipated proceeds from the sale ofcollateral pledged against the claims and amounts that are expected to be recovered from guarantors of the claims) are
written off against the respective claim balances. The total directly written-off amounts were ¥116,834 million ($1,055,229
thousand) and ¥89,216 million as of March 31, 2021 and 2020, respectively.
Other consolidated subsidiaries provide the amount necessary to cover the loan losses based upon past experienceand other factors for general claims and the assessment for each individual loan for other claims.

Data section(10) Reserves for Possible Losses on Loans

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(13) Reserve for Variable Compensation

Appendix

To prepare for the payments of performance payments and stock compensation to be paid as variable compensation
within compensation for directors, and executive officers of Mizuho Financial Group, Inc., Mizuho Bank, Ltd., Mizuho
Trust & Banking Co., Ltd., and Mizuho Securities Co., Ltd., the estimated payment based on the standard amountregarding variable compensation of the fiscal year is provided.

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(14) Reserve for Director and Corporate Auditor Retirement Benefits
Reserve for Director and Corporate Auditor Retirement Benefits, which is provided for future retirement benefit
payments to directors, corporate auditors, and executive officers, is recognized at the amount accrued by the end of the
fiscal year, based on the internally established standards.

(15) Reserve for Possible Losses on Sales of Loans
Reserve for Possible Losses on Sales of Loans is provided for possible future losses on sales of loans at the amountdeemed necessary based on a reasonable estimate of possible future losses.

(16) Reserve for Contingencies
Reserve for Contingencies is maintained to provide against possible losses from contingencies which are not coveredby other specific reserves. The balance is an estimate of possible future losses considered to require a reserve.

(17) Reserve for Reimbursement of Deposits
Reserve for Reimbursement of Deposits is provided against the losses for the deposits derecognized from liabilities atthe estimated amount of future claims for withdrawal by depositors.

(18) Reserve for Reimbursement of Debentures
Reserve for Reimbursement of Debentures is provided for the debentures derecognized from liabilities at the estimatedamount for future claims.

(19) Reserve under Special Laws
Reserve under Special Laws is Reserve for Contingent Liabilities from Financial Instruments and Exchange of ¥3,135
million ($28,321 thousand) and ¥2,509 million as of March 31, 2021 and 2020, respectively. This is the reserve pursuant
to Article 46-5 of the Financial Instruments and Exchange Law and Article 175 of the Cabinet Office Ordinanceregarding Financial Instruments Business, etc. to indemnify the losses incurred from accidents in the purchase and saleof securities, other transactions or derivative transactions.

(20) Accounting Method for Retirement Benefits
In calculating retirement benefit obligations, a benefit formula basis is used as a method of attributing expected
retirement benefits to the period up to the end of this fiscal year. Unrecognized prior service cost and unrecognizedactuarial differences are recognized as follows:
Unrecognized prior service cost: Recognized mainly as income or expenses in the period of occurrence.
Unrecognized actuarial difference: Recognized as income or expenses from the following fiscal year under thestraight-line method over a certain term within the average remaining service
period of the employees (mainly 10 years) of the respective fiscal years.
Certain consolidated subsidiaries apply the simplified method that assumes the amount required for voluntary
resignation at the end of the term to be retirement benefit obligations in computing net defined benefit liability andretirement benefit expenses.

(21) Assets and Liabilities Denominated in Foreign Currencies
Assets and liabilities denominated in foreign currencies and accounts of overseas branches of domestic consolidatedbanking subsidiaries and a domestic consolidated trust banking subsidiary are translated into Japanese yen primarily atthe exchange rates in effect at the consolidated balance sheet date, with the exception of the investments in affiliates
not under the equity method, which are translated at historical exchange rates.
Assets and liabilities denominated in foreign currencies of the consolidated subsidiaries, except for the transactions
mentioned above, are translated into Japanese yen primarily at the exchange rates in effect at the respective balance
sheet dates.

159

Standards of Accounting Method

160Standards of Accounting Method

About Mizuho
Message from theGroup CFO
Our strategies forcreating value
Foundations for our
corporate value
Data section(a) Interest Rate Risk
The deferred method, the fair-value hedge method or the exceptional accrual method for interest rate swaps areapplied as hedge accounting methods.
The portfolio hedge transaction for a large volume of small-value monetary claims and liabilities of domestic
consolidated banking subsidiaries and domestic consolidated trust banking subsidiaries is accounted for by themethod stipulated in the JICPA Industry Committee Practical Guideline No.24, October 8, 2020.
The effectiveness of hedging activities for the portfolio hedge transaction for a large volume of small-valuemonetary claims and liabilities is assessed as follows:(i) as for hedging activities to offset market fluctuation risks, the effectiveness is assessed by bracketing both thehedged instruments, such as deposits and loans, and the hedging instruments, such as interest-rate swaps, inthe same maturity bucket.
(ii) as for hedging activities to fix the cash flows, the effectiveness is assessed based on the correlation between thebase interest rate index of the hedged instrument and that of the hedging instrument.
The effectiveness of the individual hedge is assessed based on the comparison of the fluctuation in the market orof cash flows of the hedged instruments with that of the hedging instruments.
(b) Foreign Exchange Risk
Domestic consolidated banking subsidiaries and domestic consolidated trust banking subsidiaries apply the deferred
method of hedge accounting to hedge foreign exchange risks associated with various financial assets and liabilities
denominated in foreign currencies as stipulated in the “Accounting and Auditing Treatment relating to Adoption of
Accounting Standards for Foreign Currency Transactions for Banks” (JICPA Industry Committee Practical Guideline
No.25, October 8, 2020). The effectiveness of the hedge is assessed by confirming that the amount of the foreign
currency position of the hedged monetary claims and liabilities is equal to or larger than that of currency swap
transactions, exchange swap transactions, and similar transactions designated as the hedging instruments of theforeign exchange risk.
In addition to the above methods, these subsidiaries apply the deferred method or the fair-value hedge method toportfolio hedges of the foreign exchange risks associated with investments in subsidiaries and affiliates denominatedin foreign currency and Other securities denominated in foreign currency (except for bonds) identified as hedged
items in advance, as long as the amount of foreign currency payables of spot and forward foreign exchange
contracts exceeds the amount of acquisition cost of the hedged foreign securities denominated in foreign currency.
(c) Inter-company Transactions
Inter-company interest rate swaps, currency swaps and similar derivatives among consolidated companies or
between trading accounts and other accounts, which are designated as hedges, are not eliminated and related gains
and losses are recognized in the statement of income or deferred under hedge accounting, because these intercompany derivatives are executed according to the criteria for appropriate outside third-party cover operations which
are treated as hedge transactions objectively in accordance with JICPA Industry Committee Practical Guideline No.
24 and 25.
As for certain assets and liabilities of MHFG and its consolidated subsidiaries, the deferred method, the fair-value
hedge method or the exceptional accrual method for interest rate swaps are applied.
(d) Hedging relationships which apply “Treatment of Hedge Accounting for Financial Instruments that Reference LIBOR”
Among above (a) to (c), all hedging relationships included in the scope of applying the “Treatment of Hedge
Accounting for Financial Instruments that Reference LIBOR” (ASBJ Practical Solutions No.40, September 29, 2020)are subject to this exceptional treatment. The detail of the hedging relationships which apply the treatment are as
follows.
Hedging method: the deferred method, the fair-value hedge method or the exceptional accrual method
Hedging instruments: interest-rate swaps, currency-swap transactions or exchange swap transactions, etc
Hedged instruments: financial assets and liabilities, financial assets and liabilities denominated in foreign
currencies, etc
The variety of Hedge transactions: to offset market fluctuation risks, to fix the cash flows

Appendix(22) Hedge Accounting

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2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(23) Consumption Taxes and OtherWith respect to MHFG and its domestic consolidated subsidiaries, Japanese consumption taxes and local consumption
taxes are excluded from transaction amounts.

(24) Amortization Method of Goodwill and Amortization Period
Goodwill is amortized over an appropriate period not to exceed 20 years under the straight-line method. The full amountof Goodwill that has no material impact is expensed as incurred.

(25) Scope of Cash and Cash Equivalents on Consolidated Statement of Cash Flows
In the consolidated statement of cash flows, Cash and Cash Equivalents consist of cash and due from central banks
included in “Cash and Due from Banks” on the consolidated balance sheet.

6. Changes in Accounting Policies(Accounting Standard for Fair Value Measurement and Others)
MHFG has applied "Accounting Standard for Fair Value Measurement" (ASBJ Statement No.30 July 4, 2019) and others fromthe beginning of the consolidated fiscal year ended March 31, 2021.
In accordance with Article 8 of "Accounting Standard for Fair Value Measurement", the fair value adjustment method used todetermine the fair value of derivatives is revised to maximize the use of relevant observable inputs estimated from derivatives
and others traded in the market.
In accordance with Article 20 of "Accounting Standard for Fair Value Measurement", the cumulative effects arising from theretroactive application of these new accounting policies to all the previous fiscal years were reflected in Retained Earnings as ofApril 1, 2020.
As a result, Retained Earnings decreased by ¥32,639 million, Trading Assets decreased by ¥50,380 million, Derivatives otherthan for Trading Assets decreased by ¥6,379 million, Trading Liabilities decreased by ¥6,529 million, Derivatives other than for
Trading Liabilities decreased by ¥3,184 million, Deferred Tax Assets increased by ¥14,405 million, and Net Assets per Sharedecreased by ¥12.87 as of April 1, 2020. The share consolidation was taken place at a ratio of ten pre-consolidation shares to
one post-consolidation share on October 1, 2020. Net Asset per share is calculated under the assumption that the shareconsolidation had been taken place at the beginning of fiscal 2019.
And in accordance with the transitional treatment set forth in Article 19 of "Accounting Standard for Fair Value Measurement"
and Article 44-2 of "Accounting Standard for Financial Instruments" (ASBJ Statement No. 10, July 4, 2019), MHFG has applieda new accounting policy prescribed by "Accounting Standard for Fair Value Measurement" and others from the consolidated
fiscal year ended March 31, 2021.
As a result, in principle, while fair value of Japanese stocks was previously determined based on the average quoted market
price over the month preceding the consolidated balance sheet date, from the end of the consolidated fiscal year ended March
31, 2021, fair value of Japanese stocks is determined based on the quoted market price as of the consolidated balance sheet
date.

161

Standards of Accounting Method、Changes in Accounting Policies

8. Change in Presentation of Financial Statements

About Mizuho
Message from theGroup CFO
Appendix

Data section(Change in Presentation according to applying “Accounting Standard for Disclosure of Accounting Estimates”)
MHFG has applied “Accounting Standard for Disclosure of Accounting Estimates” (ASBJ Statement No.31 March 31, 2020)
from the end of this fiscal year, and has noted “Critical Accounting Estimate.” However the contents for the previous fiscal year
ended 31 March, 2020 are unstated in the notes in accordance with the transitional treatment set forth in the proviso of Article
11.

Our strategies forcreating value

・Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan ("ASBJ") Statement No.29, March 31,
2020)
・Implementation Guidance on Accounting Standard for Revenue Recognition (ASBJ Guidance No.30, March 26, 2021)
・Implementation Guidance on Disclosures about Fair Value of Financial Instruments (ASBJ Guidance No.19, March 31, 2020)(1) Overview
International Accounting Standards Board ("IASB") and Financial Accounting Standards Board ("FASB") jointly establishedthe comprehensive accounting standard for revenue recognition and issued "Revenue from contracts with customers"(International Financial Reporting Standards ("IFRS") 15 / FASB Topic 606). Considering the application of IFRS 15 from thefiscal year beginning on and after January 1, 2018 and Topic 606 from the fiscal year beginning after December 15, 2017,
ASBJ has established the comprehensive accounting standard for revenue recognition and issued the accounting standard
together with the implementation guidance.
As a basic policy in establishing the accounting standard for revenue recognition, ASBJ has initiated deliberation on theaccounting standard, incorporating the basic principles of IFRS 15 from the standpoint of maintaining comparability between
financial statements that is one of benefits of ensuring consistency with IFRS 15. If there were items that should giveconsideration to practical businesses conducted in Japan, the alternative treatment shall be provided as long as
comparability is not harmed.
(2) Scheduled Date of Application
MHFG is scheduled to apply this accounting standard from the beginning of the consolidated fiscal year starting on April 1,
2021.
(3) Effect of Application of this accounting standard
The effect of the application of this accounting standard is under assessment.

Foundations for our
corporate value

7. Issued but not yet Adopted Accounting Standard and Others

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162

Issued but not yet Adopted Accounting Standard and Others、Change in Presentation of Financial Statements

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

9. Critical Accounting Estimates
1. Reserves for Possible Losses on Loans(1) Amount on Consolidated Balance Sheet as of March 31, 2021
Reserves for Possible Losses on Loans ¥575,572 million(2) Information for understanding the contents of critical accounting estimates(a) Calculating method
Calculation method is stated on "5. Standards of Accounting Method (10) Reserves for Possible Losses on Loans."
In addition, we have updated the expected loss amount for portfolio with similar characteristics of credit risk, which arehighly likely to incur losses. We judged the possibility to incur losses based on future prospects of external environments
utilizing our credit risk management framework.
(b) Key assumptions
Key assumptions are “Forecast for obligors used for assigning internal credit ratings and for discounted cash flow method”
and “Forecast of the external environment used for making necessary adjustment to expected loss”.
“Forecast for obligors used for assigning internal credit ratings and for discounted cash flow method” has been determinedaccording to obligor’s earnings, debt repayment status, industry characteristics, development and progress of businessplan and obligor’s earnings capabilities based on the impact of COVID-19.
“Forecast of the external environment used for making necessary adjustment to expected loss” is determined based on
macroeconomic scenario, etc.
More specifically, we have reflected the potential impact of the spread of COVID-19 and its prolongation on Reserves for
Possible Losses on Loans. For the relevant estimates, we used the future prospect of business environment of eachindustry and the forecasted GDP growth rate as Key assumptions.
(c) Impact on Consolidated Financial Statements for the following consolidated fiscal year
Due to the business trends in Japan and overseas and changes in the economic environment in certain industries, credit
related costs may increase due to new portfolio problems that exceeds expectations, deterioration in the credit condition of
obligors in certain industries, declines in the value of collateral and guarantees, etc.
2. Fair Value of Financial Instruments(1) Amount on Consolidated Balance Sheet as of March 31, 2021
The amount is stated on “43. Financial Instruments 3. Matters relating to breakdown of fair value of financial instruments bylevel (1) Financial instruments recorded at fair value in the interim consolidated balance sheet.”(2) Information for understanding the contents of critical accounting estimates(a) Calculating method
Calculation method is stated on "43. Financial Instruments 3. Matters relating to breakdown of fair value of financial
instruments by level (Note 1) Explanation of valuation techniques and valuation inputs used in fair value measurements."(b) Key assumptions
Key assumptions are the inputs used in the valuation model, and we may use observable inputs such as interest rates,
exchange rates and market value of securities etc. and may also use unobservable inputs including significant estimatessuch as prepayment rate, default rate, recovery rate, discount rate, correlation and volatility, etc.
(c) Impact on Consolidated Financial Statements for the following consolidated fiscal year
Due to changes in the inputs as Key assumptions by the change of market environments, the fair value of financial
instruments may increase or decrease.

163

Critical Accounting Estimates

About Mizuho
Message from theGroup CFO
Appendix

Data section

Foundations for our
corporate value

Our strategies forcreating value

3. Net Defined Benefit Asset and Net Defined Benefit Liability(1) Amount on Consolidated Balance Sheet as of March 31, 2021
The amount is stated on “27. Reserve for Employee Retirement Benefits.”(2) Information for understanding the contents of critical accounting estimates(a) Calculating method
Mizuho Financial Group, majority-owned consolidated subsidiaries sponsor severance indemnities and pension plan as
defined benefit plan. Net Defined Benefit Asset and Net Defined Benefit Liability is calculated based on a number ofactuarial assumptions including mortality, withdrawals, discount rates, expected long-term rates of return on plan assets
and rates of increase future compensation level.
(b) Key assumptions
Key assumptions are actuarial assumptions. Net Defined Benefit Asset and Net Defined Benefit Liability is calculated
based on a number of actuarial assumptions including mortality, withdrawals, discount rates, expected long-term rates ofreturn on plan assets and rates of increase future compensation level.
(c) Impact on Consolidated Financial Statements for the following consolidated fiscal year
Differences in results and actuarial assumptions and changes Key assumptions may affect Net Defined Benefit Asset andNet Defined Benefit Liability for the following consolidated fiscal year.

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164

Critical Accounting Estimates

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

10. Additional Information(The Board Benefit Trust (“BBT”) Program)Since MHFG operates its business to contribute to the creation of value for diverse stakeholders and realize improved corporate
value through the continuous and stable growth of MHFG group pursuant to MHFG’s basic management policy defined under
the Mizuho Financial Group’s Corporate Identity, MHFG has introduced a stock compensation program using a trust (the“Program”) that functions as an incentive for each Director, Executive Officer, and Specialist Officer to exert maximum effort inperforming his or her duties, and also as consideration for such exertion of effort.
(1) Outline of the Program
The Program has adopted the Board Benefit Trust (“BBT”) framework. MHFG’s shares on the stock market will be acquired
through a trust established based on the underlying funds contributed by MHFG, and MHFG’s shares will be distributed to
Directors and Executive Officers of MHFG, Mizuho Bank, Ltd., Mizuho Trust & Banking Co., Ltd., and Mizuho Securities Co.,
Ltd. (the “Company Group”) in accordance with the Rules on Distribution of Shares to be prescribed in advance. The
framework consists of the stock compensation program based on the Company Group Officer’s position in their respective
company (“Stock Compensation I”) and the stock compensation program based on the performance evaluation of theCompany Group (“Stock Compensation II”).
Stock Compensation I will be paid at the time of retirement in the form of shares of MHFG calculated based on their position.
A system is adopted which enables a decrease or forfeiture of the amount depending on the performance of the company or
the individual.
Stock Compensation II will be paid in the form of shares of MHFG and will be deferred over three years, which is calculated
based on the status of achieving our Five-Year Business Plan. A system is adopted which enables a decrease or forfeiture of
the amount depending on the performance of the company or the individual.
Upon the payment of stock compensation under the Program, MHFG may, for a certain portion, pay a monetary amountequivalent to the market value of its stock in lieu of stock compensation in accordance with the Rules on Distribution of
Shares.
Voting rights related to MHFG’s shares belonging to the trust assets under the trust shall not be exercised.
(2) MHFG’s Shares Outstanding in the Trust
MHFG’s shares outstanding in the trust are recognized as Treasury Stock under Net Assets at the carrying amount(excluding the amount of incidental expenses) in the trust. The carrying amount of such Treasury Stock as of March 31, 2021
was ¥4,144 million ($37,436 thousand) for 2,544 thousand shares (the carrying amount as of March 31, 2020 was ¥3,485
million for 19,636 thousand shares). 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. The number of Treasury Stockas of March 31, 2021 is recorded at the amount after the share consolidation. The number of Treasury Stock as of March 31,
2020 is recorded at the amount before the share consolidation.
(Adoption of the Consolidated Taxation System)
MHFG and some domestic consolidated subsidiaries of the Group apply the accounting treatments on the premise of the
adoption of the Consolidated Taxation System under “Practical Solution on Tentative Treatment of Tax Effect Accounting Under
Consolidated Taxation System (Part 1)” (Practical Solutions No.5 January 16, 2015) and “Practical Solution on Tentative
Treatment of Tax Effect Accounting Under Consolidated Taxation System (Part 2)” (Practical Solutions No.7 January 16, 2015)
from the fiscal year ended March 31, 2021 because the adoption has been approved from fiscal 2021 by Commissioner of
National Tax Agency.
(Application of tax-effect accounting to the Transition from the Consolidated Taxation System to the Group
Aggregation System)
MHFG and some domestic consolidated subsidiaries of the Group record amounts of deferred tax assets and deferred tax
liabilities based on the provisions of tax laws prior to amendment under the treatment in Paragraph 3 of "Treatment of theapplication of the tax-effect accounting in relation to the transition from the consolidated tax system to the aggregate groupsystem" (Practical Solutions No.39 March 31, 2020), without applying the provisions of Paragraph 44 of "Guidance on
Accounting Standard for tax-effect accounting" (Implementation Guidance No.28 February 16, 2018), regarding the tax items forwhich review of the non-consolidated Tax Payment System was implemented in accordance with the transition to theaggregated group system established under the "Act for Partial Revision of the Income Tax Act, etc." (Act No. 8 of 2020) andthe transition to the aggregated group system.

165

Additional Information

Millions of yen
2021

2020

Thousands of U.S. dollars
2021¥ 6,421,348¥ 5,377,182$ 57,996,281

5,616,260
551,685¥ 12,589,294

7,404,811
466,740¥ 13,248,734

50,724,899
4,982,708$ 113,703,888¥ 2,402,420¥ 2,213,074$ 21,698,161

5,382,333
330,624¥ 8,115,377

7,034,850
356,966¥ 9,604,890

48,612,115
2,986,128$ 73,296,404

As of March 31,

Appendix

Data section

Foundations for our
corporate value

Trading Assets:
Trading Securities
Derivatives for Trading
Transactions
Derivatives for Trading Securities
Total
Trading Liabilities:
Trading Securities Sold Short
Derivatives for Trading
Transactions
Derivatives for Trading Securities
Total

About Mizuho

12. Trading Assets and Liabilities

Message from theGroup CFO

Unsecured loaned securities which the borrowers have the right to sell or repledge amounted to ¥ - million ($ thousand) and ¥ 80,056 million as of March 31, 2021 and 2020, respectively, and are included in Japanese Government
Bonds under Securities. MHFG has the right to sell or repledge some of unsecured borrowed securities, securities
purchased under resale agreements and securities borrowed with cash collateral. Among them, the totals of securities
repledged were ¥13,417,819 million ($121,186,956 thousand) and ¥19,960,803 million as of March 31, 2021 and 2020,
respectively, and securities neither repledged nor re-loaned were ¥1,520,936 million ($13,736,778 thousand) and¥1,998,251 million as of March 31, 2021 and 2020, respectively.

Our strategies forcreating value

11. Securities Lending and Borrowing Transactions

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

166

Securities Lending and Borrowing Transactions、Trading Assets and Liabilities2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

13. Securities
Millions of yen
2021

As of March 31,

Japanese Government Bonds
Japanese Local Government Bonds
Japanese Corporate Bonds
Japanese Stocks*1
Other*2
Total¥21,400,540
463,559
2,760,906
3,570,120
15,502,136¥43,697,262

2020

Thousands of U.S. dollars
2021¥13,081,871
272,5672,828,044
2,796,100
15,928,651¥34,907,234$193,285,231
4,186,772
24,935,931
32,244,582
140,012,067$394,664,583*1 Japanese Stocks included investments in non-consolidated subsidiaries and affiliates of ¥257,712 million ($2,327,607 thousand) and ¥245,025 million as ofMarch 31, 2021 and 2020, respectively.
*2 Other included investments in non-consolidated subsidiaries and affiliates of ¥91,180 million ($823,521 thousand) and ¥87,364 million as of March 31, 2021

and 2020, respectively.

14. Loans and Bills Discounted
Millions of yen
2021

2020

Thousands of U.S. dollars
2021¥ 71,127,895
8,909,927
3,018,081
391,261¥ 70,211,197
9,182,140
3,548,262
325,228$ 642,412,353
80,472,613
27,258,688
3,533,791

257,508¥ 83,704,675

201,355¥ 83,468,185

2,325,764$ 756,003,209

As of March 31,

Loans on Deeds
Overdrafts
Loans on Notes
Bills Discounted
Financing Receivables, including
Factoring, Leasing and Property
Financing
Total

Loans and Bills Discounted as of March 31, 2021 and 2020 include the following:
Millions of yen
2021

As of March 31,

Loans to Bankrupt Obligors*1
Non-Accrual Delinquent Loans*2
Loans Past Due for Three Months or More*3
Restructured Loans*4
Total

¥

¥

19,554415,318534
377,049
812,457

¥

¥

2020

15,938401,016
1,468
256,429674,853

Thousands of U.S. dollars
2021

$

$

176,6093,751,072
4,831
3,405,435
7,337,947*1 Loans to Bankrupt Obligors represent non-accrual loans to obligors who are legally bankrupt as defined in Article 96, Paragraph 1, Items 3 and 4 of the

Corporate Tax Law Enforcement Ordinance (Government Ordinance No.97, 1965).
*2 Non-Accrual Delinquent Loans represent non-accrual loans other than (i) Loans to Bankrupt Obligors and (ii) loans of which payments of interest are

deferred in order to assist or facilitate the restructuring of obligors in financial difficulties.
*3 Loans to Bankrupt Obligors or Non-Accrual Delinquent Loans, both of which are classified as non-accrual, are not included in this category.
*4 Restructured Loans represent loans on which contracts were amended in favor of obligors (e.g., the reduction of or exemption from stated interest, thedeferral of interest payments, the extension of maturity dates, or renunciation of claims) in order to assist or facilitate the restructuring of obligors in financial
difficulties.
Note: The amounts given in the above table are gross amounts before deduction of amounts for the Reserves for Possible Losses on Loans.

167

Securities、Loans and Bills Discounted

2020

Thousands of U.S. dollars
2021

Foreign Exchange Assets:
Foreign Bills Bought
Foreign Bills Receivable
Due from Banks (Foreign)
Advance to Foreign Banks
Total
Foreign Exchange Liabilities:
Due to Banks (Foreign)
Advance from Foreign Banks
Foreign Bills Payable
Foreign Bills SoldTotal

¥ 1,223,549
544,583
315,973649¥ 2,084,756¥ 1,016,138
489,312538,316648¥ 2,044,415$ 11,050,848
4,918,564
2,853,805
5,867$ 18,829,084

¥

¥

$

¥

479,188
29,38921,6001,863
532,042¥454,643
35,656
14,4184,686
509,405

Millions of yen
2021

2020

$

4,327,932
265,441
195,088
16,8324,805,293

16. Other Assets
As of March 31,¥

315,263
79,136
5,779,619¥ 6,174,020¥

318,983
68,7694,818,368¥ 5,206,121$

2,847,398
714,748
52,200,320$ 55,762,466

About Mizuho
Appendix

Accrued Income
Prepaid Expenses
Other
Total

Thousands of U.S. dollars
2021

Message from theGroup CFO

Millions of yen
2021

As of March 31,

Our strategies forcreating value

15. Foreign Exchange Assets and Liabilities

Foundations for our
corporate value

Overdraft protection on current accounts and contracts of the commitment line for loans are contracts by which banking
subsidiaries are bound to extend loans up to the prearranged amount, at the request of customers, unless the customer isin breach of contract conditions. The unutilized balance of these contracts amounted to ¥107,724,379 million ($972,944,177
thousand) and ¥90,835,753 million as of March 31, 2021 and 2020, respectively. Of these amounts, ¥80,332,843 million($725,549,526 thousand) and ¥68,937,304 million as of March 31, 2021 and 2020, respectively, relate to contracts of which
the original contractual maturity is one year or less, or which are unconditionally cancelable at any time.
Since many of these contracts expire without being exercised, the unutilized balance itself does not necessarily affectfuture cash flows. A provision is included in many of these contracts that entitles the banking subsidiaries to refuse theexecution of loans, or reduce the maximum amount under contracts when there is a change in the financial situation,necessity to preserve a claim, or other similar reasons. The banking subsidiaries require collateral such as real estate andsecurities when deemed necessary at the time the contracts are entered into. In addition, they periodically monitor
customers’ business conditions in accordance with internally established standards and take necessary measures tomanage credit risks such as amendments to contracts.

Data section

Commitment Line for Loans

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

168

Loans and Bills Discounted、Foreign Exchange Assets and Liabilities、Other Assets

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

17. Tangible Fixed Assets
Millions of yen
2021

As of March 31,

Land
Buildings
Lease Assets
Construction in Progress
Other
Total
Accumulated Depreciation
Book Value Adjusted for Gains on
Sales of Replaced Assets andOthers¥624,429
268,587
7,622
124,049
110,762¥ 1,135,449¥
875,6742020¥

610,305
287,038
13,29372,290120,694¥ 1,103,622¥
894,792

32,485

Thousands of U.S. dollars
2021$

5,639,713
2,425,823
68,842
1,120,387
1,000,383$ 10,255,148$ 7,908,911

33,155

293,407

2020

Thousands of U.S. dollars
2021¥ (383,062)¥ (239,035)$ (3,459,737)(191,208)(185,410)(1,726,958)(1,301)¥ (575,572)―¥ (424,446)(11,759)$ (5,198,454)

18. Reserves for Possible Losses on Loans
Millions of yen
2021

As of March 31,

General Reserve for Possible
Losses on Loans
Specific Reserve for Possible
Losses on Loans
Reserve for Possible Losses on
Loans to Restructuring Countries
Total

19. Assets Pledged as Collateral
The following assets were pledged as collateral:
Millions of yen
2021

As of March 31,

Trading Assets
Securities
Loans and Bills Discounted¥ 2,217,478
6,913,993
10,142,050

2020

Thousands of U.S. dollars
2021¥ 1,281,698
5,551,273
3,584,065$ 20,027,801
62,445,752
91,600,892

The following liabilities were collateralized by the above assets:
Millions of yen
2021

As of March 31,

Deposits
Payables under Repurchase
Agreements
Guarantee Deposits Received
under Securities Lending
Transactions
Borrowed Money

¥

2020

Thousands of U.S. dollars
2021

764,255¥ 1,057,282

6,333,580

5,479,619

57,203,585

935,121
6,282,906

778,766
4,073,507

8,445,819
56,745,907

169

Tangible Fixed Assets、Reserves for Possible Losses on Loans、Assets Pledged as Collateral$

6,902,594

Millions of yen
2021

As of March 31,

Current Deposits
Ordinary Deposits*1
Deposits at NoticeTime Deposits
Negotiable Certificates of Deposit
Other
Total

¥ 14,632,991
77,487,819
865,357
33,471,395
17,192,572
6,854,842¥ 150,504,9782020

Thousands of U.S. dollars
2021¥ 12,863,193
71,429,036
976,230
38,805,967
13,282,561
7,115,245¥ 144,472,235$ 132,162,130
699,853,858
7,815,730
302,306,678
155,279,738
61,911,514$ 1,359,329,648

About Mizuho

20. Deposits

Message from theGroup CFO

In addition, the settlement accounts of foreign and domestic exchange transactions or derivatives transactions and others
were collateralized, and margins for futures transactions were substituted by Cash and Due from Banks of ¥63,463 million($573,191 thousand) and ¥65,745 million, Trading Assets of ¥179,925 million ($1,625,049 thousand) and ¥124,676 million,
Securities of ¥3,353,832 million ($30,291,118 thousand) and ¥2,454,991 million, and Loans and Bills Discounted of ¥99,964
million ($902,863 thousand) and ¥142,757 million as of March 31, 2021 and 2020, respectively.
Other Assets included guarantee deposits of ¥110,674 million ($999,593 thousand) and ¥113,053 million, collateralpledged for derivatives transactions of ¥963,985 million ($8,706,520 thousand) and ¥980,077 million, margins for futurestransactions of ¥185,323 million ($1,673,805 thousand) and ¥500,066 million, and other guarantee deposits of ¥922,075
million ($8,327,996 thousand) and ¥945,916 million as of March 31, 2021 and 2020, respectively.

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Millions of yen
2021

As of March 31,

Call Money
Bills SoldTotal

¥ 1,312,790―¥ 1,312,790

2020

Thousands of U.S. dollars
2021¥ 2,263,076―¥ 2,263,076$ 11,856,848―$ 11,856,848

22. Commercial Paper
As of March 31,

Commercial Paper

Millions of yen
2021¥2,105,067

2020

Thousands of U.S. dollars
2021¥411,089$19,012,533

Average interest rates*1
2021
2020

0.19%

1.74%

*1 Average interest rates are the weighted-average interest rates of debts calculated from the interest rates and outstanding balances at the end of the fiscal

Foundations for our
corporate value

21. Call Money and Bills Sold

Our strategies forcreating value*1 Ordinary Deposits includes savings deposits.

As of March 31,

Borrowed Money
Bills Rediscounted
Other Borrowings*2,3Millions of yen
2021¥7,441,822―¥7,441,822

2020

Thousands of U.S. dollars
2021¥5,209,947―¥5,209,947$67,212,992―$67,212,992

Average interest rates*1
2021
2020

0.12%
―%
0.12%

0.72%
―%
0.72%

*1 Average interest rates are the weighted-average interest rates of debts calculated from the interest rates and outstanding balances at the end of the fiscal

year.
*2 Other Borrowings included subordinated debt of ¥213,000 million ($1,923,772 thousand) and ¥168,000 million as of March 31, 2021 and 2020, respectively.
*3 Repayments for Other Borrowings are scheduled for the next five years as follows:

Fiscal year ending March 31, 2022
2023
2024
2025
2026

¥6,375,199 million¥147,031 million¥86,213 million¥125,524 million¥147,637 million($57,579,472 thousand)($1,327,961 thousand)($778,661 thousand)($1,133,712 thousand)($1,333,432 thousand)170

Assets Pledged as Collateral、Deposits、Call Money and Bills Sold、Commercial Paper、Borrowed Money

Appendix

23. Borrowed Money

Data sectionyear.

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

24. Short-term Bonds
Major components of Short-term Bonds as of March 31, 2021 were as follows:
Issuer

Issue

MHSC

Oct. 2020–Mar. 2021

*1

Nov. 2020–Mar. 2021

Total

Millions of yen Thousands of U.S. dollars¥423,500[423,500]
32,545[32,545]¥456,045$3,824,964[3,824,964]
293,948[293,948]$4,118,912

Interest rates

0.00%–0.02%
0.07%–0.13%

Due

Apr. 2021–
Sep. 2021
Apr. 2021–
Aug. 2021*1 indicates the total amount of Short-term Bonds issued by the domestic consolidated subsidiary, Allstar Funding Co., Ltd, and the overseas consolidated

subsidiary, JAPAN SECURITIZATION CORPORATION.

Notes: 1. Figures indicated in brackets [ ] represent the amounts to be redeemed within one year.
2. No collateral was provided for the above Short-term Bonds.
Major components of Short-term Bonds as of March 31, 2020 were as follows:
Issuer

Issue

MHSC

Sep. 2019–Mar. 2020

*1Oct. 2019–Mar. 2020

Total

Millions of yen

Interest rates¥319,000[319,000]
54,658[54,658]¥373,658

0.00%–0.00%
0.06%–0.12%

Due

Apr. 2020–
Sep. 2020
Apr. 2020–
Jun. 2020*1 indicates the total amount of Short-term Bonds issued by the domestic consolidated subsidiary, Allstar Funding Co., Ltd, and the overseas consolidated

subsidiary, JAPAN SECURITIZATION CORPORATION.

Notes: 1. Figures indicated in brackets [ ] represent the amounts to be redeemed within one year.
2. No collateral was provided for the above Short-term Bonds.

171

Short-term Bonds

Major components of Bonds and Notes as of March 31, 2021 were as follows:

Description

Issue

MHFG

Straight Bonds

Jul. 2014–
Feb. 2021

MHBK

Straight Bonds

Jan. 2006–
Mar. 2020*1

Straight Bonds

Jul. 2012–
Mar. 2014*2

Straight Bonds

Apr. 2006–
Mar. 2021

Total

Millions of yen¥7,681,894[877,720](US$ 33,450,000 thousand)(EUR 6,000,000 thousand)(AUD 625,000 thousand)
911,779[157,916](US$ 4,620,345 thousand)(AUD 685,000 thousand)(HKD 920,000 thousand)
331,942[—](US$ 2,998,039 thousand)
1,396,055[375,802](US$ 5,097,804 thousand)(AUD 159,853 thousand)(EUR 758,693 thousand)(CNY 3,790,000 thousand)(BRL 3,673 thousand)(GBP 40,159 thousand)(TRY 16,776 thousand)¥10,321,672

Thousands of U.S.
dollars

Interest
rates$69,381,268[7,927,384]

0.00%–
4.35%

Apr. 2021–

8,235,003[1,426,264]

0.50%–
4.40%

Apr. 2021–

2,998,040[—]

4.20%–
4.60%

Jul. 2022–
Mar. 2024

12,608,886[3,394,172]

0.00%–
52.00%

Apr. 2021–
Dec. 2060

Due

Our strategies forcreating value

IssuerMessage from theGroup CFO

25. Bonds and Notes

About Mizuho

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）$93,223,197

Foundations for our
corporate value*1 indicates the total amount of straight bonds issued by the overseas consolidated subsidiaries, Mizuho Financial Group (Cayman) 2 Limited and Mizuho

Financial Group (Cayman) 3 Limited.
*2 indicates the total amount of straight bonds issued by the domestic consolidated subsidiary, MHSC, and the overseas consolidated subsidiaries, Mizuho

International plc, Mizuho Securities USA LLC, Mizuho Capital Markets LLC, Banco Mizuho do Brasil S.A. and Mizuho Bank (China), Ltd.

Appendix

Data section

Notes: 1. Figures indicated in brackets [ ] represent the amounts to be redeemed within one year.
2. The amounts of foreign currency-denominated bonds are shown in original currencies in parentheses ( ).
3. Repayments for Bonds and Notes are scheduled for the next five years as follows:
Fiscal year ending March 31, 2022 ¥1,411,438 million ($12,747,821 thousand)2023 ¥1,073,273 million ($9,693,584 thousand)2024 ¥530,279 million ($4,789,376 thousand)2025 ¥1,371,764 million ($12,389,496 thousand)2026 ¥383,775 million ($3,466,177 thousand)4. Bonds and Notes as of March 31, 2021 included subordinated bonds and notes of ¥3,796,982 million($34,293,560 thousand).
5. No collateral was provided for the above Bonds and Notes.

172

Bonds and Notes

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Major components of Bonds and Notes as of March 31, 2020 were as follows:
IssuerDescription

Issue

MHFG

Straight Bonds

Jul. 2014–
Feb. 2020

MHTB

Straight Bonds

Dec. 2005

MHBK

Straight Bonds

Aug. 2005–
Mar. 2020*1

Straight Bonds

Jul. 2012–
Mar. 2014*2

Straight Bonds

Sep. 2005*3

Straight Bonds

Jan. 2003–
Mar. 2020

Total

Millions of yen¥6,414,818[—](US$ 26,950,000 thousand)(EUR 4,500,000 thousand)(AUD 625,000 thousand)
10,000[10,000]
1,100,670[196,393](US$ 5,849,635 thousand)(AUD 905,000 thousand)(SGD 50,000 thousand)(HKD 1,540,000 thousand)(CNY 500,000 thousand)
326,182[—](US$ 2,997,174 thousand)
30,000[—]1,024,760[249,616](US$ 2,360,301 thousand)(AUD 72,340 thousand)(EUR 889,300 thousand)(BRL 1,007 thousand)(GBP 20,000 thousand)(MXN 9,000 thousand)(TRY 58,276 thousand)¥8,906,432

Interest
rates

Due

0.10%–
4.35%

Apr. 2021–

2.24%

Dec. 2020

0.22%–
5.30%

Apr. 2020–

4.20%–
4.60%

Jul. 2022–
Mar. 2024

2.21%

Sep. 2025

0.00%–
51.60%

Apr. 2020–
Dec. 2059*1 indicates the total amount of straight bonds issued by the overseas consolidated subsidiaries, Mizuho Financial Group (Cayman) 2 Limited and Mizuho

Financial Group (Cayman) 3 Limited.
*2 indicates the total amount of straight bonds issued by the overseas consolidated subsidiaries, Mizuho Finance (Cayman) Limited and Mizuho Finance(Curaçao) N.V.
*3 indicates the total amount of straight bonds issued by the domestic consolidated subsidiary, MHSC, and the overseas consolidated subsidiaries, Mizuho

International plc, Mizuho Securities USA LLC, Mizuho Capital Markets LLC and Banco Mizuho do Brasil S.A.

Notes: 1. Figures indicated in brackets [ ] represent the amounts to be redeemed within one year.
2. The amounts of foreign currency-denominated bonds are shown in original currencies in parentheses ( ).
3. Repayments for Bonds and Notes are scheduled for the next five years as follows:
Fiscal year ending March 31, 2021 ¥456,009 million
2022 ¥1,217,464 million
2023 ¥936,038 million
2024 ¥461,467 million
2025 ¥1,041,730 million
4. Bonds and Notes as of March 31, 2020 included subordinated bonds and notes of ¥3,594,804 million.
5. No collateral was provided for the above Bonds and Notes.

173

Bonds and Notes

249,187
97,87368,556
72,702
5,622,875¥ 6,111,195$

1,765,125855,752
511,787
587,737
49,224,082$ 52,944,483. It is the weighted-average interest rate of debts*1 Average interest rate is 2.74% and 2.59% in the fiscal year ended March 31, 2021 and 2020, respectively

calculated from the interest rates and outstanding balances at the end of the fiscal year.
*2 Repayments for Lease Liabilities are scheduled for the next five years as follows:
Fiscal year ending March 31, 2022
¥8,156 million ($73,667 thousand)
2023¥6,434 million ($58,113 thousand)
2024¥4,184 million ($37,795 thousand)
2025¥3,638 million ($32,862 thousand)
2026¥3,019 million ($27,269 thousand)

27. Reserve for Employee Retirement Benefits(1) MHFG and its certain consolidated subsidiaries have adopted the Corporate Pension Fund Plans (“Kigyo Nenkin Kikin
Seido”), and the Termination Allowance Plans (“Taishoku Ichijikin Seido”) as Defined-Benefit Corporate Pension Plans.
In addition, MHFG and certain consolidated subsidiaries have adopted Defined- Contribution Pension Plans other thanrisk-sharing corporate pension as a part of the Termination Allowance Plans. MHFG and its certain consolidated
subsidiaries revised the Employee Retirement Benefit Plans and transferred a part of the Defined-Benefit Corporate
Pension Plans to the Defined-Contribution Pension Plans in this consolidated fiscal year. Certain consolidated
subsidiaries have established employee retirement benefit trusts.
(2) Defined-Benefit Corporate Pension Plans(i) Adjustment between the balances of Retirement Benefit Obligations at the beginning and at the end of the period
For the Fiscal Years ended March 31,

Balance of Retirement Benefit Obligations
at the beginning of the period
Service Cost
Interest Cost
Unrecognized Actuarial Differences incurred
Retirement Benefits paid
Unrecognized Prior Service Cost incurred
Decrease resulting from Transfer toDefined Contribution Pension Plans
Other
Balance of Retirement Benefit Obligations
at the end of the period

Millions of yen
2021

2020

Thousands of U.S. dollars
2021¥1,440,341
38,124
4,315
17,898(82,322)(62,404)¥1,462,237
44,797
4,013
3,352(74,766)
2,734$13,008,861
344,331
38,979161,659(743,522)(563,626)(21,638)―(195,435)

1,576(2,027)

14,238¥1,335,890¥1,440,341$12,065,485

Note: The above Retirement Benefit Obligations includes the amount measured by certain consolidated subsidiaries under
the simplified method.

174

Other Liabilities、Reserve for Employee Retirement Benefits

About Mizuho¥

Message from theGroup CFO

195,434
94,74856,66565,0745,450,090¥ 5,862,013

Our strategies forcreating value¥

Thousands of U.S. dollars
2021Foundations for our
corporate value

Accrued Expenses
Unearned Income
Income Taxes Payable
Lease Liabilities*1*2
Other
Total

2020

Data section

Millions of yen
2021

As of March 31,

Appendix

26. Other Liabilities

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(ii) Adjustment between the balances of Plan Assets at the beginning and at the end of the period
Millions of yen
2021

For the Fiscal Years ended March 31,

Balance of Plan Assets
at the beginning of the period
Expected Return on Plan Assets
Unrecognized Actuarial Differences incurred
Contributions from employer
Contributions from employee
Retirement Benefits paid
Cancellation of Employee Retirement Benefit
Trust
Decrease resulting from Transfer toDefined Contribution Pension Plans
Other
Balance of Plan Assets at the end of theperiod2020

Thousands of U.S. dollars
2021¥2,225,010
39,092349,857
22,483
1,131(53,636)¥2,384,168
39,117(163,708)
18,207
1,199(52,314)$20,095,828
353,072
3,159,837
203,064
10,216(484,436)(188,298)―(1,700,676)(23,845)―(215,372)

2,157(1,659)19,483¥2,373,949¥2,225,010$21,441,016(iii) Adjustment between the balances of Retirement Benefit Obligations and Plan Assets at the end of the period andAdjustment to the balances of Net Defined Benefit Liability and Net Defined Benefit Asset recorded in the Consolidated
Balance Sheet
Millions of yen
2021

2020

Thousands of U.S. dollars
2021¥1,335,890(2,373,949)¥1,440,341(2,225,010)$12,065,485(21,441,016)¥(1,038,058)¥(784,668)$(9,375,531)

2020

Thousands of U.S. dollars
2021¥71,049(1,109,107)¥62,113(846,782)$641,700(10,017,231)¥(1,038,058)¥(784,668)$(9,375,531)

2020

Thousands of U.S. dollars
2021¥37,103
4,315(39,092)(22,563)(62,117)
8,922¥43,697
4,013(39,117)(60,477)
2,803
8,813

$335,114
38,979(353,072)(203,790)(561,037)
80,590¥(73,431)¥(40,266)$(663,216)¥(76,996)―$(695,418)¥3,320―$29,987

As of March 31,

Retirement Benefit Obligations
Plan Assets
Net amount of Liability and Asset recordedin the Consolidated Balance Sheet

Millions of yen
2021

As of March 31,

Net Defined Benefit Liability
Net Defined Benefit Asset
Net amount of Liability and Asset recordedin the Consolidated Balance Sheet(iv) Employee Retirement Benefit Expenses and the breakdown
For the Fiscal Years ended March 31,

Service Cost
Interest Cost
Expected Return on Plan Assets
Amortization of Unrecognized Actuarial Differences
Amortization of Unrecognized Prior Service Cost
Other
Net Retirement Benefit Expenses for DefinedBenefit Corporate Pension Plans
Gains on Cancellation of Employee
Retirement Benefit Trust
Losses on Transfer to Defined Contribution
Pension Plan

Millions of yen
2021

Notes: 1. The amount of employee contributions to Mizuho Pension Fund is deducted from Service Cost.
2. Retirement benefit expenses of some consolidated subsidiaries which adopt the simplified method for calculating
retirement benefit obligations are included in Service Cost in full.

175

Reserve for Employee Retirement Benefits

3. Except for certain part, Amortization of Unrecognized Prior Service Cost, incurred in connection with the revisionof the Employee Retirement Benefit Plans for MHFG and its certain consolidated subsidiaries in this consolidated
fiscal year is included in Other Income (¥62,176 million).
4. Gains on Cancellation of Employee Retirement Benefit Trust is included in Other Income.
5. Losses on Transfer to Defined Contribution Pension Plan is included in Other Expenses.

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Thousands of U.S. dollars
2021¥227,368(69)¥227,299$(2,442,910)(2,589)$(2,445,499)(vi) Remeasurements of Defined Benefit Plans in Total Accumulated Other Comprehensive Income
Breakdown of Remeasurements of Defined Benefit Plans in Total Accumulated Other Comprehensive Income (before
deducting tax effect) was as follows:

As of March 31,

Unrecognized Actuarial Differences
Other
Total

Millions of yen
2021¥(409,679)(112)¥(409,792)

2020

Thousands of U.S. dollars
2021¥(138,808)
173¥(138,635)$(3,700,139)(1,019)$(3,701,158)(vii) Plan Assets(a) Ratio of each category to the total amount of Plan Assets was as follows:
As of March 31,

Japanese Stocks
Japanese Bonds
Foreign Stocks
Foreign Bonds
General account of life insurance companies
Other
Total

2021

2020

57.86%
13.50%
13.30%
9.23%
4.85%
1.26%
100.00%56.39%
14.77%
10.17%
10.44%
5.08%
3.15%
100.00%Note: The total amount of Plan Assets includes 55.47% and 56.59% of Employee Retirement Benefit Trust established for
the Corporate Pension Fund Plans and the Termination Allowance Plans as of March 31, 2021 and 2020,
respectively.
(b) Calculation of Expected Long-term Rate of Return on Plan Assets

Message from theGroup CFO¥(270,479)(286)¥(270,765)2020

Our strategies forcreating value

Unrecognized Actuarial Differences
Other
Total

Millions of yen
2021

Foundations for our
corporate value

For the Fiscal Years ended March 31,

Data section

Breakdown of Remeasurements of Defined Benefit Plans in Other Comprehensive Income (before deducting tax effect)
was as follows:

About Mizuho(v) Remeasurements of Defined Benefit Plans in Other Comprehensive Income

Appendix

In determining the Expected Long-term Rate of Return on Plan Assets, current and expected allocation of Plan Assets
and current and expected future long-term rate of return from various assets constituting Plan Assets have been
considered.

176

Reserve for Employee Retirement Benefits2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(viii) Basis of Actuarial Calculation
Major Basis of Actuarial Calculation
For the Fiscal Years ended March 31,

Discount Rate
Expected Long-term Rate of Return on Plan Assets

2021

2020

mainly (0.07)%- 0.82%
mainly 1.22%- 1.90%

mainly (0.00)%- 0.62%
mainly 1.27%- 1.90%(3) Defined- Contribution Pension Plans
The required amount of contributions to Defined- Contribution Pension Plans of MHFG and its consolidated
subsidiaries was ¥4,644 million ($41,944 thousand) and ¥3,140 million for the fiscal years ended March 31, 2021 and2020, respectively.

28. Acceptances and Guarantees(1) Liabilities for guarantees on corporate bonds included in Securities, which were issued by private placement (Article 2,
Paragraph 3 of the Financial Instruments and Exchange Law (the Securities and Exchange Law as of March 31, 2007))
amounted to ¥1,407,731 million ($12,714,335 thousand) and ¥1,548,136 million as of March 31, 2021 and 2020,
respectively.
(2) The principal amounts promised to be indemnified for money trusts which is entrusted to a domestic consolidated trust
banking subsidiary, was ¥842,669 million ($7,610,818 thousand) and ¥883,781 million as of March 31, 2021 and 2020,
respectively.

177

Reserve for Employee Retirement Benefits、Acceptances and Guarantees¥151,383
115,206¥163,264
139,889$1,367,261
1,040,519

193,394

139,748

1,746,699

164,504
153,500
212,641
990,630

200,851
181,041
191,484
1,016,280

1,485,769
1,386,387
1,920,538
8,947,173(135,444)(144,829)(1,223,305)(135,143)(167,297)(1,220,591)(270,588)¥720,042(312,127)¥704,152(2,443,896)$6,503,277¥(437,275)¥(339,009)$(3,949,381)(339,576)(127,346)¥(904,198)¥(184,155)(259,332)(126,468)¥(724,809)¥(20,656)(3,066,983)(1,150,166)$(8,166,530)$(1,663,252)

Note1: MHFG and domestic subsidiaries are subject to a number of different income taxes.
Note2:Tax Losses Carried Forward and amounts according to expiration of carryforward of their Deferred Tax Assets:
As of March 31, 2021

Tax Losses Carried Forward*
Valuation Allowance
Deferred Tax Assets

Within 1 year

1-2 years

2-3 years

3-4 years

¥47
(45)
2

¥1,045
(19)
1,025

¥897
(22)
875

¥23
(23)
0

Within 1 year

1-2 years

2-3 years

3-4 years

¥59
(47)
11

¥64
(64)
―

¥1,901
(19)
1,882

¥912
(21)
890

Within 1 year

1-2 years

2-3 years

3-4 years

$431
(409)
22

$9,439(179)
9,259$8,110
(202)
7,908

$216
(215)
1

4-5 years Over 5 years¥85,354(74,607)
10,747¥64,013(60,725)
3,287¥151,383(135,444)
15,9384-5 years Over 5 years

Millions of yen
Total

As of March 31, 2020

Tax Losses Carried Forward*
Valuation Allowance
Deferred Tax Assets
As of March 31, 2021

Tax Losses Carried Forward*
Valuation Allowance
Deferred Tax Assets

Millions of yen
Total

¥23
(23)
0

¥160,302(144,652)
15,649¥163,264(144,829)
18,434

Thousands of U.S. dollars
4-5 years Over 5 years
Total$770,906(673,837)
97,069$578,159 $1,367,261(548,463) (1,223,305)
29,696
143,955*Tax Losses Carried Forward is the amount multiplied by the effective statutory tax rate.

178

Deferred Tax Assets and Liabilities

About Mizuho

Deferred Tax Assets:
Tax Losses Carried Forward
Devaluation of Securities
Reserves for Possible Losses on
Loans
Securities Contributed to
Employee Retirement Benefit
Trust
Depreciation and Impairment
Other
Deferred Tax Assets Subtotal:
Valuation Allowance - Tax Losses
Carried Forward
Valuation Allowance - Deductible
Temporary Differences, etc.
Valuation Allowance Subtotal:
Total
Deferred Tax Liabilities:
Net Unrealized Gains on Other
Securities
Net Defined Benefit Asset
Other
Total
Net Deferred Tax Assets

Message from theGroup CFO

Thousands of U.S. dollars
2021

Our strategies forcreating value

2020

AppendixMillions of yen
2021

As of March 31,

Foundations for our
corporate value(1) Deferred Tax Assets and Liabilities consisted of the following:

Data section

29. Deferred Tax Assets and Liabilities

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(2) For the fiscal years ended March 31, 2021 and 2020, the reconciliation of the statutory tax rate of MHFG to the effective
income tax rate was as follows:
For the Fiscal Year ended March 31,

Statutory Tax Rate
Adjustments
Change in Valuation Allowance
Permanent Differences (e.g., Cash Dividends
Received)
Tax Rate Differences between theConsolidated Subsidiaries
Equity in Income from Investments in Affiliates
Controlled Foreign Company Rules
Other
Effective Income Tax Rate

2021

2020

30.62%

30.62%(3.37)(0.15)(1.11)(1.24)(1.42)(0.94)
1.12
1.90
26.80%(1.52)(1.50)
0.09(0.20)
26.10%(Change in Presentation of Financial Statements)
Controlled Foreign Company Rules included within Other in the previous consolidated year has been separately
presented from this consolidated fiscal year due to increased materiality. In order to reflect the change in presentation of
the financial statements, reclassification of the previous consolidated fiscal year has been made accordingly.
As a result, Other of (0.11)% presented in the consolidated statements for the previous consolidated fiscal year has
been reclassified as Controlled Foreign Company Rules of 0.09% and Other of (0.20)%.

30. Revaluation of Land
In accordance with the Land Revaluation Law (Proclamation No.34 dated March 31, 1998), land used for business
operations of domestic consolidated banking subsidiaries was revalued. The applicable income taxes on the entire excess
of revaluation are included in Deferred Tax Liabilities for Revaluation Reserve for Land under Liabilities, and the remainder,
net of applicable income taxes, is stated as Revaluation Reserve for Land included in Net Assets.
Revaluation date: March 31, 1998
Revaluation method as stated in Article 3, Paragraph 3 of the above law: Land used for business operations wasrevalued by calculating the value on the basis of the valuation by road rating stipulated in Article 2, Paragraph 4 of
the Enforcement Ordinance relating to the Land Revaluation Law (Government Ordinance No.119 promulgated on
March 31, 1998) with reasonable adjustments to compensate for sites with long depth and other factors, and also on
the basis of the appraisal valuation stipulated in Paragraph 5.
The difference at the consolidated balance sheet date between the total fair value of land for business operation
purposes, which has been revalued in accordance with Article 10 of the above-mentioned law, and the total bookvalue of the land after such revaluation was ¥51,009 million ($460,710 thousand) and ¥47,148 million as ofMarch 31, 2021 and 2020, respectively.

179

Deferred Tax Assets and Liabilities、Revaluation of Land

Common Stock and Preferred Stock at March 31, 2021 and 2020 were as follows:
Number of shares
As of March 31, 2021
Class of stock

Common Stock

Authorized*2

Issued andoutstanding*1

Interimcash
dividend

4,800,000,000

2,539,249,894¥37.50Per share (Yen)
Year-end
cash Liquidation
dividendvalue¥37.50¥―With
Convertible Redemption
or notor notNo

No

Appendix

Data section

Foundations for our
corporate value

Our strategies forcreating value

Message from theGroup CFO

Notes: 1. Treasury Stock is included. The number is as follows:
Common Stock
552 thousand shares
2. Each total number of other shares which are authorized to be issued is as follows:First Series Class XIV Preferred Stock
90,000 thousand shares
Second Series Class XIV Preferred Stock
90,000 thousand shares
Third Series Class XIV Preferred Stock
90,000 thousand shares
Fourth Series Class XIV Preferred Stock
90,000 thousand sharesFirst Series Class XV Preferred Stock
90,000 thousand shares
Second Series Class XV Preferred Stock
90,000 thousand shares
Third Series Class XV Preferred Stock
90,000 thousand shares
Fourth Series Class XV Preferred Stock
90,000 thousand sharesFirst Series Class XVI Preferred Stock
150,000 thousand shares
Second Series Class XVI Preferred Stock
150,000 thousand shares
Third Series Class XVI Preferred Stock
150,000 thousand shares
Fourth Series Class XVI Preferred Stock
150,000 thousand shares
The total number of shares of the First to Fourth Series Class XIV Preferred Stock, which are authorized to beissued, shall not exceed 90,000,000 in total.
The total number of shares of the First to Fourth Series Class XV Preferred Stock, which are authorized to beissued, shall not exceed 90,000,000 in total.
The total number of shares of the First to Fourth Series Class XVI Preferred Stock, which are authorized to beissued, shall not exceed 150,000,000 in total.
3. 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. Interim cash dividend per share is
calculated under the assumption that the share consolidation had been adopted at the beginning of fiscal 2020.

About Mizuho

31. Common Stock and Preferred Stock

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

180

Common Stock and Preferred Stock2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Number of shares
As of March 31, 2020
Class of stock

Common Stock

Authorized*2

Issued andoutstanding*1

Interimcash
dividend

48,000,000,000

25,392,498,945¥3.75

Per share (Yen)
Year-end
cash Liquidation
dividend
value

¥3.75

¥―

With
Convertible Redemption
or notor notNo

No

Notes: 1. Treasury Stock is included. The number is as follows:
Common Stock
3,622 thousand shares
2. Each total number of other shares which are authorized to be issued is as follows:First Series Class XIV Preferred Stock
900,000 thousand shares
Second Series Class XIV Preferred Stock
900,000 thousand shares
Third Series Class XIV Preferred Stock
900,000 thousand shares
Fourth Series Class XIV Preferred Stock
900,000 thousand sharesFirst Series Class XV Preferred Stock
900,000 thousand shares
Second Series Class XV Preferred Stock
900,000 thousand shares
Third Series Class XV Preferred Stock
900,000 thousand shares
Fourth Series Class XV Preferred Stock
900,000 thousand sharesFirst Series Class XVI Preferred Stock
1,500,000 thousand shares
Second Series Class XVI Preferred Stock
1,500,000 thousand shares
Third Series Class XVI Preferred Stock
1,500,000 thousand shares
Fourth Series Class XVI Preferred Stock
1,500,000 thousand shares
The total number of shares of the First to Fourth Series Class XIV Preferred Stock, which are authorized to beissued, shall not exceed 900,000,000 in total.
The total number of shares of the First to Fourth Series Class XV Preferred Stock, which are authorized to beissued, shall not exceed 900,000,000 in total.
The total number of shares of the First to Fourth Series Class XVI Preferred Stock, which are authorized to beissued, shall not exceed 1,500,000,000 in total.
3. Number of authorized common stock, number of issued and outstanding common stock, interim cash dividend
par share, year-end cash dividend par share are recorded at the amount before the share consolidation effective
as of October 1, 2020.

181

Common Stock and Preferred StockMessage from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

32. Stock Options
Outline of stock options and changes
For the fiscal year ended March 31, 2021

6
26

130

1,245,200

Directors
Executive
Officers
Directors ofsubsidiaries of
MHFG
Executive
Officers ofsubsidiaries of
MHFG
Common stock

6
11
23

150

1,177,600

December 8, 2011
August 31, 2012
The grantee may exercise the Stock Acquisition Rights whichhave been allotted based on his or her capacity as a Director
or an Executive Officer of MHFG, MHBK, MHCB, MHTB or
MHSC immediately following the date on which such grantee
loses the status as a Director or an Executive Officer of
MHFG, MHBK, MHCB, MHTB or MHSC.

April 1, 2011
to March 31, 2012
December 9, 2011
to December 8, 2031

April 1, 2012
to March 31, 2013
September 3, 2012
to August 31, 2032

Directors
Executive
Officers
Directors ofsubsidiaries of
MHFG
Executive
Officers ofsubsidiaries of
MHFG
Common stock

6
36
22

134

793,200

February 17, 2014
The grantee may exercise theStock Acquisition Rights whichhave been allotted based on
his or her capacity as a
Director or an Executive
Officer of MHFG, MHBK,MHTB or MHSC immediately
following the date on whichsuch grantee loses the status
as a Director or an Executive
Officer of MHFG, MHBK,MHTB or MHSC
April 1, 2013
to March 31, 2014
February 18, 2014
to February 17, 2034

Appendix

Data section

Required service
periodExercise period

Common stock6

Sixth Series of Stock
Acquisition Rights of MHFG

Message from theGroup CFO

Number of stock
options*1
Grant dateCondition for vesting

Directors
Executive
Officers
Directors ofsubsidiaries of
MHFG
Executive
Officers ofsubsidiaries of
MHFG

Fifth Series of Stock
Acquisition Rights of MHFG

Our strategies forcreating value

Number of grantees

Fourth Series of Stock
Acquisition Rights of MHFG

Foundations for our
corporate value

As of March 31, 2021

About Mizuho(1) Outline of stock options

182

Stock Options

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

As of March 31, 2021

Number of grantees

Number of stock
options*1
Grant dateCondition for vesting

Required service
periodExercise period*1: Shown in number of shares.

Seventh Series of Stock
Acquisition Rights of MHFG

Directors
Executive Officers as definedin the Companies Act
Executive Officers as definedin our internal regulations
Directors of subsidiaries of
MHFG
Executive Officers ofsubsidiaries of MHFG
Common stock

Stock Options

12
37
32
113
960,200

December 1, 2014
The grantee may exercise the Stock Acquisition
Rights which have been allotted based on his or
her capacity as a Director, an Executive Officer
as defined in Companies Act or an Executive
Officer as defined in our internal regulations of
MHFG, MHBK, MHTB or MHSC immediately
following the date on which such grantee loses
the status as a Director, an Executive Officer as
defined in Companies Act or an Executive
Officer as defined in our internal regulations of
MHFG, MHBK, MHTB or MHSC.
April 1, 2014
to March 31, 2015
December 2, 2014
to December 1, 2034

The Number reflects the share consolidation effective as of October 1, 2020.

183

2

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(2) Size of stock options and changes

Non-vested
As of March 31, 2020
GrantedForfeited
VestedOutstanding
VestedAs of March 31, 2020
VestedExercised
Forfeited
Outstanding

Fourth Series ofStock Acquisition
Rights of MHFG

Fifth Series ofStock Acquisition
Rights of MHFG

Sixth Series ofStock Acquisition
Rights of MHFG

Seventh Series ofStock Acquisition
Rights of MHFG

10,200───
10,20022,300───
22,30021,000──10,40010,60074,200──31,60042,600

─
─
─
─
─

─
─
─
─
─

─
10,40010,400───
31,60031,600──

Message from theGroup CFO

For the Fiscal Year ended
March 31, 2021

About Mizuho(i) Number of stock options (in shares)

Note: The above table is shown in number of shares.
The Number reflects the share consolidation effective as of October 1, 2020.

As of March 31, 2021

Exercise price
Average stock priceupon exercise
Fair value at grant date

Fourth Series ofStock Acquisition
Rights of MHFG

Fifth Series ofStock Acquisition
Rights of MHFG

Sixth Series ofStock Acquisition
Rights of MHFG

Seventh Series ofStock Acquisition
Rights of MHFG

¥1 per share¥1 per share¥1 per share¥1 per share──¥1,212.00¥1,212.00

Our strategies forcreating value(ii) Price information

Appendix

Data section

Foundations for our
corporate value¥918.40¥1,132.50¥1,926.10¥1,869.90
per shareper shareper shareper share
Note: Average stock price upon exercise and Fair value at grant date are recorded at the amount after the shareconsolidation effective as of October 1, 2020.

184

Stock Options

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(3) Estimated number of stock options to be vested
Only the number of stock options actually forfeited is reflected because the number of stock options that will be forfeitedin the future cannot be readily estimated.
For the fiscal year ended March 31, 2020
(1) Outline of stock options

As of March 31, 2020

Number of grantees

Number of stock
options*1
Grant dateCondition for vesting

Required service
periodExercise period

185

Stock Options

Third Series of Stock
Acquisition Rights of MHFG

Directors
Executive
Officers
Directors ofsubsidiaries of
MHFG
Executive
Officers ofsubsidiaries of
MHFG
Common stock

Fourth Series of Stock
Acquisition Rights of MHFG

4 Directors
Executive
4
Officers
Directors of
12 subsidiaries of
MHFG
Executive
Officers of71
subsidiaries of
MHFG
6,808,000

August 26, 2010
The grantee may exercise theStock Acquisition Rights
which have been allottedbased on his or her capacity
as a Director or an Executive
Officer of MHFG, MHBK orMHCB immediately following
the date on which suchgrantee loses the status as a
Director or an Executive
Officer of MHFG, MHBK or
MHCB.
April 1, 2010
to March 31, 2011
August 27, 2010
to August 26, 2030

Common stock

Fifth Series of Stock
Acquisition Rights of MHFG

6 Directors
Executive
6
Officers
Directors of
26 subsidiaries of
MHFG
Executive
Officers of
130
subsidiaries of
MHFG
12,452,000

Common stock

6
11
23

150

11,776,000

December 8, 2011
August 31, 2012
The grantee may exercise the Stock Acquisition Rights whichhave been allotted based on his or her capacity as a Director
or an Executive Officer of MHFG, MHBK, MHCB, MHTB or
MHSC immediately following the date on which such grantee
loses the status as a Director or an Executive Officer of MHFG,MHBK, MHCB, MHTB or MHSC.

April 1, 2011
to March 31, 2012
December 9, 2011
to December 8, 2031

April 1, 2012
to March 31, 2013
September 3, 2012
to August 31, 2032

6

Executive
Officers

36

Directors ofsubsidiaries of
MHFG
Executive
Officers ofsubsidiaries of
MHFG
Number of stock
options*1
Grant dateCondition for vesting

Required service
periodExercise period

Common stock

Directors
Executive Officers as definedin the Companies Act
Executive Officers as definedin our internal regulations

2
12
37

22

Directors of subsidiaries of
MHFG

32

134

Executive Officers ofsubsidiaries of MHFG

113

7,932,000

February 17, 2014
The grantee may exercise theStock Acquisition Rights
which have been allottedbased on his or her capacity
as a Director or an Executive
Officer of MHFG, MHBK,MHTB or MHSC immediately
following the date on whichsuch grantee loses the status
as a Director or an Executive
Officer of MHFG, MHBK,MHTB or MHSC
April 1, 2013
to March 31, 2014
February 18, 2014
to February 17, 2034

Common stock

About Mizuho

Directors

Seventh Series of Stock
Acquisition Rights of MHFG

9,602,000

December 1, 2014
The grantee may exercise the Stock Acquisition
Rights which have been allotted based on his or
her capacity as a Director, an Executive Officer
as defined in Companies Act or an Executive
Officer as defined in our internal regulations of
MHFG, MHBK, MHTB or MHSC immediately
following the date on which such grantee loses
the status as a Director, an Executive Officer as
defined in Companies Act or an Executive
Officer as defined in our internal regulations of
MHFG, MHBK, MHTB or MHSC.

Message from theGroup CFO

Number of grantees

Sixth Series of Stock
Acquisition Rights of MHFG

Our strategies forcreating value

As of March 31, 2020

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

April 1, 2014
to March 31, 2015
December 2, 2014
to December 1, 2034

Foundations for our
corporate value*1: Shown in number of shares.

Appendix

Data section

The Number is recorded at the amount before the share consolidation effective as of October 1, 2020.

186

Stock Options

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(2) Size of stock options and changes(i) Number of stock options (in shares)
For the Fiscal Year ended
March 31, 2020

Non-vested
As of March 31, 2019
GrantedForfeited
VestedOutstanding
VestedAs of March 31, 2019
VestedExercised
Forfeited
Outstanding

Third Series ofStock Acquisition
Rights of MHFG

Fourth Series ofStock Acquisition
Rights of MHFG

Fifth Series ofStock Acquisition
Rights of MHFG

Sixth Series ofStock Acquisition
Rights of MHFG

Seventh Series ofStock Acquisition
Rights of MHFG

52,000──52,000─

271,000──
169,000
102,000

847,000──
624,000
223,000

891,000──
681,000
210,000

2,184,000
──
1,442,000
742,000

─
52,00052,000───
169,000
169,000───
624,000
624,000───
681,000
681,000───
1,442,000
1,442,000
──

Note: The above table is shown in number of shares.
The Number is recorded at the amount before the share consolidation effective as of October 1, 2020.
(ii) Price information

As of March 31, 2020

Exercise price
Average stock priceupon exercise
Fair value at grant date

Third Series ofStock Acquisition
Rights of MHFG

Fourth Series ofStock Acquisition
Rights of MHFG

Fifth Series ofStock Acquisition
Rights of MHFG

Sixth Series ofStock Acquisition
Rights of MHFG

Seventh Series ofStock Acquisition
Rights of MHFG

¥1 per share¥1 per share¥1 per share¥1 per share¥1 per share¥172.50¥172.50¥172.50¥172.50¥171.58¥119.52¥91.84¥113.25¥192.61¥186.99
per shareper shareper shareper shareper share
Note: Average stock price upon exercise and Fair value at grant date are recorded at the amount before the shareconsolidation effective as of October 1, 2020.

187

Stock Options

2020

Thousands of U.S. dollars
2021¥942,426
240,494
2,190
45,411¥1,242,279
266,861
5,356
105,257$8,511,801
2,172,100
19,785410,148

41,535

251,830

375,144

2,946
58,503¥1,333,509

18,779124,074¥2,014,440

26,615528,390$12,043,983¥166,312
1,907¥607,219
8,686$1,502,098
17,231

56,199351,012507,583

788
3,564
16,867
182,185¥427,826¥905,683

7,041
15,48433,949257,503¥1,280,897¥733,542

7,123
32,194
152,343
1,645,465$3,864,037$8,179,946

2020

Thousands of U.S. dollars
2021¥239,950¥221,563$2,167,185

148,491¥388,441

184,975¥406,539

1,341,142$3,508,327

311
¥311
¥388,130

15,239¥15,239¥391,299

2,813$2,813$3,505,514

34. Trading Income and Trading Expenses
For the Fiscal Years ended March 31,

Appendix

Trading Income:Net Gains on Trading Securities
Net Gains on Derivatives for
Trading Transactions
Total
Trading Expenses:
Net Losses on Trading Securities
Total
Net

Millions of yen
2021

About Mizuho

Interest Income:Loans and Bills Discounted
Securities
Call Loans and Bills Purchased
Due from Banks
Receivables under Resale
Agreements
Guarantee Deposits Paid under
Securities Borrowing
Transactions
Other Interest Income
Total
Interest Expenses:
Deposits
Call Money and Bills Sold
Payables under Repurchase
Agreements
Guarantee Deposits Received
under Securities Lending
Transactions
Commercial Paper
Borrowed Money
Other Interest Expenses
Total
Net

Millions of yen
2021

Message from theGroup CFO

For the Fiscal Years ended March 31,

Our strategies forcreating value

33. Interest Income and Interest Expenses

Foundations for our
corporate value

Only the number of stock options actually forfeited is reflected because the number of stock options that will be forfeitedin the future cannot be readily estimated.

Data section(3) Estimated number of stock options to be vested

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

188

Stock Options、Interest Income and Interest Expenses、Trading Income and Trading Expenses

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

35. Other Operating Income
Millions of yen
2021

2020

Thousands of U.S. dollars
2021¥110,093
117,748¥29,538
224,830$994,340
1,063,476―
130,413¥358,254

23,969133,776¥412,114―
1,177,867$3,235,683

2020

Thousands of U.S. dollars
2021¥116,363¥103,320$1,050,973

21,295
3,332
54,691¥195,683―
2,185
47,040¥152,547

192,338
30,096493,963$1,767,370

2020

Thousands of U.S. dollars
2021¥204,293¥226,005$1,845,138

76,996―695,418

62,176―

561,561

5,034

11,90145,474

3,030
29,447¥380,978

2,239
78,291¥318,438

27,367265,963$3,440,921

2020

Thousands of U.S. dollars
2021¥180,636¥161,005$1,631,472

147,457

72,2581,331,809

12,793

15,224

115,547

9,606

6,138

86,763

3,320―

29,987

159,085¥512,900

128,915¥383,542

1,436,832$4,632,410

For the Fiscal Years ended March 31,

Gains on Foreign Exchange
Transactions
Gains on Sales of Bonds
Gains on Derivatives other thanfor Trading or Hedging
Other
Total

36. Other Operating Expenses
Millions of yen
2021

For the Fiscal Years ended March 31,

Losses on Sales of Bonds
Expenses on Derivatives other thanfor Trading or Hedging
Losses on Devaluation of Bonds
Other
Total

37. Other Income
Millions of yen
2021

For the Fiscal Years ended March 31,

Gains on Sales of Stock
Gains on Cancellation of
Employee Retirement
Benefit Trust
Accumulation (Amortization) of
Unrecognized Prior Service Cost
Recovery on Written-off Loans
Gains on Disposition of Fixed
AssetsOther
Total

38. Other Expenses
Millions of yen
2021

For the Fiscal Years ended March 31,

Provision for Reserves for Possible
Losses on Loans
Losses on Sales of Stocks
Losses on Impairment of Fixed
Assets
Losses on Disposition of Fixed
Assets
Losses on Transfer to DefinedContribution Pension Plan
Other
Total

189

Other Operating Income、Other Operating Expenses、Other Income、Other Expenses

2021¥467,344(59,699)407,644(101,675)
305,969¥(218,565)(255,014)(473,580)
113,800(359,779)$4,220,956(539,191)
3,681,765(918,314)
2,763,451(41,749)(16,330)(58,080)
17,785(40,294)116,234
20,025
136,260(41,723)
94,536(377,076)(147,492)(524,568)
160,635(363,933)(4,078)2,203(1,874)—(1,874)(20,650)—(20,650)—(20,650)(36,832)
19,900(16,932)—(16,932)

330,453(59,687)
270,765(83,021)
187,744(166,891)(60,407)(227,299)
69,605(157,693)

2,984,586(539,086)
2,445,500(749,830)
1,695,670

2,968¥454,513(5,961)¥(449,547)

26,814$4,105,070

About Mizuho

Thousands of U.S. dollars
2020

Appendix

Data section

Net Unrealized Gains on Other Securities:
The amount arising during the period
Reclassification adjustments
Before adjustments to tax effects
The amount of tax effects
Net Unrealized Gains on Other Securities
Deferred Gains or Losses on Hedges:
The amount arising during the period
Reclassification adjustments
Before adjustments to tax effects
The amount of tax effects
Deferred Gains or Losses on Hedges
Foreign Currency Translation Adjustments:
The amount arising during the period
Reclassification Adjustments
Before adjustments to tax effects
The amount of tax effects
Foreign Currency Translation Adjustments
Remeasurements of Defined Benefit Plans:
The amount arising during the period
Reclassification Adjustments
Before adjustments to tax effects
The amount of tax effects
Remeasurements of Defined Benefit Plans
Share of Other Comprehensive Income of Associates
Accounted for Using Equity Method:
The amount arising during the period
The total amount of Other Comprehensive Income

2021

Message from theGroup CFO

Millions of yen
For the Fiscal Years ended March 31,

Our strategies forcreating value

Reclassification adjustments and the related tax effects concerning Other Comprehensive Income

Foundations for our
corporate value

39. Comprehensive Income

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

190

Comprehensive Income

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

40. Changes in Net Assets
For the fiscal year ended March 31, 2021
(i) Types and number of issued shares and of treasury stock are as follows:

Issued shares
Common stock
Total
Treasury stock
Common stock
Total

Thousands of Shares
As ofMarch 31, 2021
Remarks

As ofApril 1, 2020

Increase during
the fiscal year

Decrease during
the fiscal year

25,392,498
25,392,498——

22,853,249
22,853,249

2,539,249
2,539,249*1,2

32,10632,106

14,585
14,58542,80242,802

3,889
3,889

*1,3

*1 MHFG adopted the share consolidation of the shares of common stock on the basis of one post-consolidation share per ten pre-consolidation shareseffective as of October 1, 2020.
*2 Decrease is due to the share consolidation of the shares of common stock.
*3 Increases are due to acquisition of treasury stock by BBT trust account (10,958 thousand shares) and repurchase of shares constituting less than one unit

and other factors (3,627 thousand shares). Decreases are due to the share consolidation of the shares of common stock (34,814 thousand shares),
distribution and sale of treasury stock through BBT trust account (5,032 thousand shares), exercise of stock acquisition rights (stock options) (420 thousand
shares), and repurchase of shares constituting less than one unit and other factors (2,535 thousand shares). The number of shares as of March 31, 2021
includes the number of treasury stock held by BBT trust account (2,554 thousand shares).

(ii) Stock acquisition rights and treasury stock acquisition rights are as follows:

Category

Breakdown ofstockacquisitionrightsStockacquisitionrights(Treasurystock
acquisitionrights)Stockacquisitionrights as
stock option
Consolidated
subsidiaries (Treasury
stock acquisition rights)

Class ofshares to
be issuedortransferred
upon
exercise ofstock
acquisitionrightsNumber of shares to be issued or transferred
upon exercise of stock acquisition rights(Shares)
Balance asof March
31, 2021(Thousandsof
U.S.dollars)

As ofApril 1,
2020

Increaseduringthe fiscal
year

Decreaseduringthe fiscal
year

As of
March
31, 2021

Balance as ofMarch 31,2021
(Millions of
yen)

—
(—)

—
(—)

—
(—)

—
(—)

¥—
(—)

$—
(—)

—

134

1,217

—

—
(—)

—
(—)

—

¥134
(—)

$1,217
(—)

MHFG

Total

191

Changes in Net Assets—

Remarks

Resolution

May 15,
2020(

The Board of
Directors

Type)

November 12,
2020(

The Board of
Directors

)

Cash
Cash
Dividends
Dividends(Millions of (Thousands ofyen)
U.S. dollars)

Cash
Cash
Dividends
Dividends
per Shareper Share(Yen) (U.S. dollars)Common Stock¥95,208$859,901

¥3.75

$0.03

Common Stock¥95,209$859,915

¥3.75

$0.03

¥190,418$1,719,816

/

/

Total

RecordDate

Effective
Date

March 31,2020

June 8,2020

September 30, December 7,
2020
2020

(Notes) 1. Cash dividends based on the resolution of the Board of Directors held on May 15, 2020 include ¥73 million of
cash dividends on treasury stock held by BBT trust account.
2. Cash dividends based on the resolution of the Board of Directors held on November 12, 2020 include ¥95 millionof cash dividends on treasury stock held by BBT trust account.

About Mizuho

Cash dividends paid during the fiscal year ended March 31, 2021

Message from theGroup CFO(iii) Cash dividends distributed by MHFG are as follows (non-consolidated basis):

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

the amount before the share consolidation.
Cash dividends with record dates falling in the fiscal year ended March 31, 2021 and effective dates coming after the end of
the fiscal year

Resolution

May 14,2021(

The Board of
Directors

Total

Type

)

Common Stock

Cash
Cash
Dividends
Dividends(Millions of (Thousands of
U.S. dollars)yen)¥95,201$859,837¥95,201$859,837

Cash
Cash
Resource Dividends
Dividends
of per Shareper Share
Dividends(Yen) (U.S. dollars)

Retained
Earnings¥37.50

$0.34

/

/

Record Effective
Date
Date

March 31, June 8,
2021
2021

Foundations for our
corporate value

share per ten pre-consolidation shares effective as of October 1, 2020. Cash Dividends per Share is recorded at

Our strategies forcreating value

3. MHFG adopted the share consolidation of the shares of common stock on the basis of one post-consolidation(Note) Cash dividends based on the resolution of the Board of Directors held on May 14, 2021 include ¥95 million of cash

Appendix

Data section

dividends on treasury stock held by BBT trust account.

192

Changes in Net Assets

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

For the fiscal year ended March 31, 2020(i) Types and number of issued shares and of treasury stock are as follows:

Issued shares
Common stock
Total
Treasury stock
Common stock
Total

Thousands of Shares
As ofMarch 31, 2020
Remarks

As ofApril 1, 2019

Increase during
the fiscal year

Decrease during
the fiscal year

25,392,498
25,392,498

—
—

—
—

25,392,498
25,392,498

33,96233,962

12,14912,14914,00414,004

32,10632,106*1*1 Increases are due to acquisition of treasury stock by BBT trust account (9,030 thousand shares) and repurchase of shares constituting less than one unit andother factors (3,119 thousand shares). Decreases are due to distribution and sale of treasury stock through BBT trust account (8,311 thousand shares),exercise of stock acquisition rights (stock options) (2,968 thousand shares), and repurchase of shares constituting less than one unit and other factors(2,725 thousand shares). The number of shares as of March 31, 2020 includes the number of treasury stock held by BBT trust account (19,636 thousand
shares).

(ii) Stock acquisition rights and treasury stock acquisition rights are as follows:

Category

Breakdown ofstockacquisitionrightsStockacquisitionrights(Treasurystock
acquisitionrights)Stockacquisitionrights as
stock option
Consolidated
subsidiaries (Treasury
stock acquisition rights)

Class ofshares to
be issuedortransferred
upon
exercise ofstock
acquisitionrightsNumber of shares to be issued or transferred
upon exercise of stock acquisition rights(Shares)

As ofApril 1,
2019

Increaseduringthe fiscal
year

Decreaseduringthe fiscal
year

As of
March
31, 2020

Balance as ofMarch 31,
2020
(Millions of
yen)

—
(—)

—
(—)

—
(—)

—
(—)

¥—
(—)

MHFG

Total

193

Changes in Net Assets

—

—

213

—

—
(—)

—

¥213
(—)

Remarks

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(iii) Cash dividends distributed by MHFG are as follows (non-consolidated basis):)

November 14,
2019(

The Board of
Directors

Common Stock¥95,197¥3.75

Common Stock¥95,208¥3.75)¥190,405/

Total

RecordDate

Effective
Date

March 31,2019

June 4,2019

September 30, December 6,
2019
2019

(Notes) 1. Cash dividends based on the resolution of the Board of Directors held on May 15, 2019 include ¥70 million of
cash dividends on treasury stock held by BBT trust account.
2. Cash dividends based on the resolution of the Board of Directors held on November 14, 2019 include ¥73 millionof cash dividends on treasury stock held by BBT trust account.
Cash dividends with record dates falling in the fiscal year ended March 31, 2020 and effective dates coming after the end of
the fiscal year

Resolution

May 15,
2020(

The Board of
Directors

Total

Type

)

Common Stock

Cash
Dividends(Millions ofyen)¥95,208¥95,208

Cash
Resource Dividendsof per ShareDividends(Yen)

Retained
Earnings¥3.75

Record Effective
Date
Date

March 31, June 8,
2020
2020

/

(Note) Cash dividends based on the resolution of the Board of Directors held on May 15, 2020 include ¥73 million of cash

Appendix

Data section

dividends on treasury stock held by BBT trust account.

Message from theGroup CFO(

The Board of
Directors

Type

Our strategies forcreating value

May 15,2019

Cash
Dividends
per Share(Yen)

Foundations for our
corporate value

Resolution

Cash
Dividends(Millions ofyen)

About Mizuho

Cash dividends paid during the fiscal year ended March 31, 2020

194

Changes in Net Assets

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

41. Cash Flows
1. Cash and Cash Equivalents on the consolidated statement of cash flows reconciles to Cash and Due from Banks on the
consolidated balance sheet as follows:
As of March 31,

Cash and Due from Banks
Less: Due from Banks excluding duefrom Central Banks
Cash and Cash Equivalents

Millions of yen
2021

2020

Thousands of U.S. dollars
2021¥47,981,981¥41,069,745$433,363,270(1,000,581)¥46,981,399(1,206,141)¥39,863,604(9,037,043)$424,326,227

42. Lease Transactions
Finance Leases (Lessees)
Finance lease transactions that do not transfer ownership:(1) Lease Assets:• Tangible fixed assets: mainly equipment• Intangible fixed assets: software(2) The method for computing the amount of depreciation is described in “5 Standards of Accounting Method (8) Lease
Assets.”Operating Leases
The future lease payments subsequent to the end of the fiscal year for non-cancelable operating lease transactions are
summarized as follows:
Lessees:
As of March 31,

Due in One Year or Less
Due after One Year
Total

Millions of yen
2021¥52,280275,241¥327,521

2020

Thousands of U.S. dollars
2021¥51,062
241,446¥292,508$472,183
2,485,927$2,958,110

2020

Thousands of U.S. dollars
2021

¥790
6,867
¥7,657$64,951
14,373$79,324

Lessors:
As of March 31,

Due in One Year or Less
Due after One Year
Total

195

Cash Flows、Lease Transactions

Millions of yen
2021¥7,191
1,591¥8,782

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

43. Financial Instruments

1. Matters Relating to the Conditions of Financial Instruments(1) Policy on Financial Instruments

About Mizuho

Mizuho Financial Group (MHFG), which primarily engages in banking business, incurs financial liabilities such as
customer deposits and market deposits on the funding side while holding financial assets such as customer loans,stocks and bonds on the investment side, and also engages in trading business for certain financial products. Some
majority-owned consolidated subsidiaries and other subsidiaries conduct securities business and other financial
business.
For above funding and investment business, MHFG appropriately manages risks of each financial instrument andcarefully watches term-gaps and other risk factors.

196

Financial Instruments

Our strategies forcreating value
Foundations for our
corporate value(a) Commitment to Risk Management
We recognize the conducting of operations tailored to the risks and managing such risks as a key issue relating tooverall management. In order to implement our business strategy while maintaining our financial stability, we
maintain comprehensive risk management and control measures.
We maintain basic policies for risk management established by our Board of Directors that are applicable to theentire Mizuho group. These policies clearly define the kinds of risks to be managed, set forth the organizational
structure and provide for the human resources training necessary for appropriate levels of risk management. The
policies also provide for audits to measure the effectiveness and suitability of the risk management structure. In linewith these basic policies, we maintain various measures to strengthen and enhance the sophistication of our risk
management system.
(b) General Concept of Risk Management
We classify our risk exposures according to the various kinds of risk, including credit risk, market risk, liquidity risk
and operational risk, and manage each type of risk according to its characteristics.
In addition to managing each type of risk individually, we have established a risk management structure to identify
and evaluate overall risk and, where necessary, to devise appropriate responses to keep risk within limits that aremanagerially acceptable in both qualitative and quantitative terms.
More specifically, we allocate risk capital to core group companies, including their respective subsidiaries, tocontrol risk within the limits set for each company. We also control risk within managerially acceptable limits by

Data section(3) Risk Management for Financial Products

Appendix

The main financial assets of the Mizuho group consist of loans to customers, government bonds and stocks. These
financial assets are subject to various types of risk that may cause the Group to incur losses due to a decline in, or total
loss of, the value of assets, as a result of deterioration in a counterparty’s and/or an issuer’s financial position (“creditrisk”), or due to a decline in the value of assets caused by fluctuations in interest rates, stock prices and foreignexchange rates and so on (“market risk”). The Group may also be exposed to the risk of incurring losses when it
becomes impossible to execute transactions in the market because of market confusion or losses arising fromtransactions at prices that are significantly less favorable than usual (“market liquidity risk “).
The main financing source of the Mizuho group is a stable source of deposits from its customers in addition to direct
funding from the financial market. These financing sources are subject to the risk of losses (“liquidity risk”) arising fromfunding difficulties due to market disruption or a deterioration in our financial position that makes it difficult for us to raise
the necessary funds or that forces us to raise funds at significantly higher interest rates than usual.
In addition, the Mizuho group uses derivative financial products to control the interest rate risk related to the assets
and liabilities of the Group, as part of our asset and liability management (“ALM”). The Group primarily utilizes theportfolio hedge by grouping numerous financial assets and liabilities such as loans and deposits into similar interest risk
units in accordance with risk management policies. Some derivative products like interest rate swaps are used as
hedging methods for cash-flow hedges or fair value hedges. The Group applies hedge accounting to the majority ofthese products, treating them as deferred hedges. The effectiveness of the hedges is assessed periodically byregression analysis and other methods to ensure whether the derivative financial products effectively work in order tooffset the exposure to changes in fair value and variable cash flows from hedged items. It should be noted that theMizuho Group uses derivative financial products for trading purposes and so on as well.

Message from theGroup CFO

(2) Contents and Risk of Financial Products

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

working to ensure that the overall risk we hold on a consolidated basis does not exceed the Group’s financial
strength. To ensure the ongoing financial health of Mizuho Financial Group, we regularly monitor the manner inwhich risk capital is being used in order to obtain a proper grasp of the risk profile within this framework. Reports arealso submitted to the Board of Directors and other committees of each company.
(c) Credit Risk Management
The Board of Directors of Mizuho Financial Group determines basic matters pertaining to credit risk management. In
addition, we have established the Risk Management Committee, as one of its Business Policy Committees. This
committee broadly discusses and coordinates basic policy in connection with credit risk management matters inconnection with overall credit portfolio management and credit risk monitoring for the Mizuho group. Under thecontrol of the Chief Risk Officer of Mizuho Financial Group, the Credit Risk Management Department and the Risk
Management Department jointly monitor, analyze and submit suggestions concerning credit risk and formulate andexecute plans in connection with basic matters pertaining to credit risk management.
We have adopted two different but mutually complementary approaches in credit risk management. The first
approach is “credit management,” in which we manage the process for each individual transaction and individual
obligor from execution until collection, based on our assessment of the credit quality of the customer. Through thisprocess, we curb losses in the case of a credit event. The second is “credit portfolio management,” in which weutilize statistical methods to assess the potential for losses related to credit risk. Through this process, we identify
credit risk and respond appropriately.
We use statistical methods to manage the possibility of losses by measuring the expected average loss for a oneyear risk horizon (“expected loss”) and the maximum loss within a certain confidence interval (“credit VAR”). The
difference between expected loss and credit VAR is measured as the credit risk amount (“unexpected loss”).Our
principal banking subsidiaries have established guidelines to manage “credit concentration risk,” which stems from
granting excessive credit to certain corporate groups.
The Board of Directors of each of our principal banking subsidiaries and other core group companies determines
key matters pertaining to credit risk management by establishing their respective basic policies in line with the basic
policies for credit risk management set forth by Mizuho Financial Group. Their respective Business Policy
Committees are responsible for discussing and coordinating overall management of their individual credit portfolios
and transaction policies towards obligors.
The Chief Risk Officer of each principal banking subsidiary and core group company is responsible for mattersrelating to planning and implementing credit risk management. Departments in charge of credit risk management are
responsible for planning and administering credit risk management and conducting credit risk measuring andmonitoring. Credit Departments determine policies and approves/disapproves individual transactions regarding
review and management of and collection from customers in accordance with the lines of authority set forth by eachprincipal banking subsidiary. In addition, each of our principal banking subsidiaries has also established internal audit
groups that are independent of the business departments in order to ensure appropriate credit risk management.
(d) Market Risk Management
The Board of Directors of Mizuho Financial Group determines basic matters pertaining to market risk management
policies. In addition, we have established the Risk Management Committee, as one of its Business Policy
Committees. The committee broadly discusses and coordinates matters concerning basic policy and operations inconnection with market risk management and market risk monitoring, and proposes measures to be taken in
emergencies such as sudden market changes.
The Chief Risk Officer of Mizuho Financial Group is responsible for matters relating to market risk management
planning and operations. The Risk Management Department of Mizuho Financial Group is responsible for monitoringmarket risk, reports and analyses, proposals, setting limits and guidelines, and formulating and implementing plans
relating to market risk management. In addition, the department assesses and manages the overall market risk of
the Mizuho group as a whole and keeps track of the market risk situation of our principal banking subsidiaries andother core group companies. The department also submits reports to the President & CEO on a daily basis and to
our Board of Directors and the executive management committee of Mizuho Financial Group on a regular basis.
To manage market risk, we set limits that correspond to risk capital allocations. The amount of risk capital
allocated to market risk corresponds to VAR and additional costs that may arise in order to close relevant positions.

197

Financial Instruments

2020

2021

¥249.4
501.7
224.0
346.5

¥361.4
361.4
167.9
215.7

$2,253,352
4,532,031
2,023,753
3,129,843[Definition of Banking Business]
The following transactions are categorized as banking business, with trading business and cross-shareholdings
being categorized separately.
(1) Deposits and loans as well as related funding activities, and hedge against interest rate risk.
(2) Equity (excluding cross-shareholdings), bonds, investment trusts, etc. and hedges against related market
risk.
The core deposit of liquid deposits is to be specified and incorporated into the measurement of market risk.

About Mizuho
Appendix

Data section

Banking business VAR used to calculate Market Risk Equivalent is based on the following:• VAR : historical simulation method;• confidence interval: one-tailed 99%;
• holding period of one month ; and• historical observation period of three years.

Message from theGroup CFO

As of fiscal year end
Maximum
Minimum
AverageThousands of U.S. dollars

2021

Our strategies forcreating value

Billions of yen
For the Fiscal Years ended March 31,

Foundations for our
corporate value

For trading and banking activities, we set limits for VAR and for losses. For banking activities, we set position limits
based on interest rate sensitivity as needed.
The Board of Directors of each of our principal banking subsidiaries and other core group companies determine
key matters pertaining to market risk by establishing their respective basic policies in line with the basic policies formarket risk management set forth by Mizuho Financial Group. Based on a common Mizuho Group risk capital
allocation framework, the above-mentioned companies manage market risk by setting limits according to the risk
capital allocated to market risk by Mizuho Financial Group. They have the same market risk management structure
as the Mizuho Financial Group, such as their Business Policy Committees being responsible for overall discussion
and coordination of the market risk management.
In addition, they have established middle offices specializing in risk management that are independent of theirfront offices, which engage in market transactions, and their back offices, which are responsible for book entries andsettlements. This system enables them to achieve mutual checks and control over market operations.
When VAR is not adequate to control risk, the middle offices manage risk using additional risk indices such as 10
BPV (Basis Point Value), carry out stress tests and set stop loss limits as needed.
(e) Situation of Market Risk
i. Banking Business
The following table shows the VAR figures relating to our banking activities for the fiscal years indicated:

Message from theGroup CEO

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198

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2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

ii. Trading Business
The following table shows VAR figures of our trading activities for the fiscal years indicated :Billions of yen

Thousands of U.S. dollars

For the Fiscal Years ended March 31,

2021

2020

2021

As of fiscal year end
Maximum
Minimum
Average

¥2.7
9.1
2.4
5.4

¥8.3
11.8
2.3
3.8

$25,226
82,54622,442
49,153[Definition of Trading Business](1) Transactions held for the purpose of short-term resale.
(2) Transactions held for the purpose of making a profit from price fluctuations over a short period as well as
fixing a profit from arbitrage activities.
(3) Deals that have both aspects of (1) and (2) above.
(4) Deals held for broking business or market making business.
Trading business VAR used to calculate Market Risk Equivalent is based on the following:• VAR: historical simulation method;• confidence interval: one-tailed 99%;
• holding period of one trading day; and• historical observation period of three years.
iii. Cross-shareholdings
For cross-shareholdings, we take the same market risk management approach as that for Banking and Tradingbusinesses with the use of VAR and risk indices.
The risk index for the cross-shareholdings (sensitivity of the portfolio to a 1% change in the equity index of
TOPIX) is ¥24.6 billion ($222,805 thousand) and ¥13.9 billion for the fiscal years ended March 31, 2021 and 2020,
respectively.
iv. Risk management using VAR
VAR is a commonly used market risk management technique with statistical assumptions to measure maximum
possible loss in the market, which will be incurred to the holding portfolio in a certain period with some probability.
It should be noted that in general VAR model has the following shortcomings:• VAR estimates could differ by assumptions of holding period, confidence interval level and approaches forthe measurement.
• VAR which is calculated based on historical data does not necessarily indicate an accurate future possible
maximum loss.
• VAR might underestimate the probability of extreme market movements when the market gets inactive as
VAR assumes sales of holding portfolio and hedges in the market during the holding period for the
calculation.
• The use of a 99% confidence level neither takes account of, nor makes any statement about, any losses
that might occur beyond this confidence level.
The historical simulation method used as the measurement technique of VAR assumes that change in a market
movement follows an empirical distribution. Therefore, the model might underestimate the risk under thecircumstance that the market is likely to move extremely beyond the assumption. We check the validity of themarket risk measurement made by VAR approach periodically by the back-test which compares VAR with actual
profit and loss. In addition to VAR, we make a wide variety of management and controls such as risk indicesmonitoring, implementation of stress tests, loss limit monitoring in order to make strict risk management by
capturing carefully all risks, including what VAR approach is not able to cover.
(f) Liquidity Risk Management
Our liquidity risk management structure is generally the same as the market risk management structure describedabove (“Item (d) Market Risk Management”). However, the head of the Financial Control & Accounting Group of
Mizuho Financial Group is additionally responsible for matters relating to planning and running cash flow
management operations, while the Financial Planning Department is responsible for monitoring and adjusting

199

Financial Instruments

(4) Supplementary Explanation of Matters Relating to Fair Value of Financial Instruments and Others

About Mizuho

the cash flow management situation and for planning and implementing cash flow management. Reports on the
cash flow situation are submitted to the Risk Management Committee, the Balance Sheet Management Committee,
the executive management committee and the President & CEO.
We measure liquidity risk using indices pertaining to cash flow, such as limits on funds raised in the market. Limits
on liquidity risk are discussed and coordinated by the Risk Management Committee, discussed further by the
executive management committee and determined by the President & CEO. We have established classifications forthe cash flow conditions affecting the Group, ranging from “normal” to “anxious” and “crisis,” and have establishedprocedures for dealing with cases which are deemed to fall into the “anxious” or “crisis” categories. In addition, we
have constructed a system under which we will be able to respond smoothly in the event of emergency situations
that affect our funding by establishing action plans.

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Appendix

Data section

Foundations for our
corporate value

Our strategies forcreating value

Message from theGroup CFO

Since certain assumptions and others are adopted for calculating fair values of financial instruments, they may differ
when adopting different assumptions and others.

200

Financial Instruments

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

2. Matters Relating to Fair Value of Financial Instruments and Others
The following are the consolidated balance sheet amounts, fair values and differences between them. Stocks and others
without a quoted market price and Investments in Partnerships and others are excluded from the table below (see (Note1)). In addition, Cash and Due from Banks, Call Loans and Bills Purchased, Receivables under Resale Agreements,
Guarantee Deposits Paid under Securities Borrowing Transactions, Call Money and Bills Sold, Payables under
Repurchase Agreements, Guarantee Deposits Received under Securities Lending Transactions, and Due to Trust
Accounts are omitted since these instruments are mainly settled in the short term and the fair values approximate thebook values.
Millions of yen
As of March 31, 2021

(1) Other Debt Purchased(2) Trading Assets
Trading Securities(3) Money Held in Trust(4) Securities
Bonds Held to Maturity
Other Securities(5) Loans and Bills Discounted
Reserves for Possible Losses on Loans *1
Total Assets(1) Deposits(2) Negotiable Certificates of Deposit(3) Trading Liabilities
Securities Sold, Not yet Purchased(4) Borrowed Money(5) Bonds and Notes
Total Liabilities
Derivative Transactions *2
Derivative Transactions not Qualifying for Hedge
Accounting
Derivative Transactions Qualifying for Hedge
Accounting *3
Total Derivative Transactions

Consolidated Balance
Sheet Amount

Fair Value

Difference¥3,208,004¥3,208,136¥132

6,421,348
579,764

6,421,348
579,764――

885,529
41,681,945
83,704,675(513,832)
83,190,843¥135,967,435¥133,312,406
17,192,572

903,599
41,681,945

18,069―84,213,843¥137,008,638¥133,303,018
17,191,241

1,023,000¥1,041,203¥(9,387)(1,331)

2,402,420
7,441,822
10,321,672¥170,670,893

2,402,420
7,435,289
10,529,372¥170,861,341―(6,533)
207,700¥190,447¥397,225¥―¥272,522
124,703¥397,225*1 General and specific reserves for possible losses on loans relevant to Loans and Bills Discounted are excluded.

Items other than Loans and Bills Discounted are recorded at the consolidated balance sheet amounts due to immateriality of their reserves.

*2 Derivative Transactions recorded in Trading Assets, Trading Liabilities, Derivatives other than for Trading Assets, Derivatives other than for Trading

Liabilities, and others are presented as a lump sum.
Net claims and debts that arose from derivative transactions are presented on a net basis, and the item that is net debts in total is presented in brackets.
*3 The deferred method is mainly applied. “Treatment of Hedge Accounting for Financial Instruments that Reference LIBOR” (ASBJ Practical Solutions No.40,
September 29, 2020) is applied to these hedge transactions.

201

Financial Instruments (2)Difference¥2,688,383¥109

5,377,182
409,524

5,377,182
409,524――

860,233
33,026,789
83,468,185(386,686)
83,081,498¥125,443,502¥131,189,673
13,282,561

875,329
33,026,789

15,096―

84,254,484¥126,631,694¥131,196,960
13,281,929

1,172,985¥1,188,191¥7,287(632)

2,213,074
5,209,947
8,906,432¥160,801,689

2,213,074
5,148,053
8,847,784¥160,687,801―(61,894)(58,647)¥(113,887)¥725,356¥―

About Mizuho

Total Assets(1) Deposits(2) Negotiable Certificates of Deposit(3) Trading Liabilities
Securities Sold, Not yet Purchased(4) Borrowed Money(5) Bonds and Notes
Total Liabilities
Derivative Transactions *2
Derivative Transactions not Qualifying for Hedge
Accounting
Derivative Transactions Qualifying for Hedge
Accounting
Total Derivative Transactions

Fair Value¥2,688,273¥367,402
357,953¥725,356*1 General and specific reserves for possible losses on loans relevant to Loans and Bills Discounted are excluded.

Appendix

Data section(Change in Presentation)
While the reserves for items other than Loans and Bills Discounted were directly written off against the consolidated balance sheet amounts due toimmateriality in the fiscal year ended March 31, 2020, these items are recorded at the consolidated balance sheet amounts without write-off of the reserves
from the fiscal year ended March 31, 2021.
*2 Derivative Transactions recorded in Trading Assets, Trading Liabilities, Derivatives other than for Trading Assets, Derivatives other than for Trading
Liabilities, and others are presented as a lump sum.
Net claims and debts that arose from derivative transactions are presented on a net basis, and the item that is net debts in total is presented in brackets.

Our strategies forcreating value(1) Other Debt Purchased(2) Trading Assets
Trading Securities(3) Money Held in Trust(4) Securities
Bonds Held to Maturity
Other Securities(5) Loans and Bills Discounted
Reserves for Possible Losses on Loans *1

Foundations for our
corporate value

As of March 31, 2020

Message from theGroup CFO

Millions of yen
Consolidated Balance
Sheet Amount

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

202

Financial Instruments (2)2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Thousands of U.S. dollars
As of March 31, 2021

(1) Other Debt Purchased(2) Trading Assets
Trading Securities(3) Money Held in Trust(4) Securities
Bonds Held to Maturity
Other Securities(5) Loans and Bills Discounted
Reserves for Possible Losses on Loans *1
Total Assets(1) Deposits(2) Negotiable Certificates of Deposit(3) Trading Liabilities
Securities Sold, Not yet Purchased(4) Borrowed Money(5) Bonds and Notes
Total Liabilities
Derivative Transactions *2
Derivative Transactions not Qualifying for Hedge
Accounting
Derivative Transactions Qualifying for Hedge
Accounting *3
Total Derivative Transactions

Consolidated Balance
Sheet Amount

Fair Value

Difference$28,974,028$28,975,226$1,19857,996,281
5,236,311

57,996,281
5,236,311――

7,997,917
376,462,662
756,003,209(4,640,826)
751,362,383$1,228,029,582$1,204,049,910
155,279,738

8,161,119
376,462,662

163,202―760,601,914$1,237,433,513$1,203,965,122
155,267,715

9,239,531$9,403,931$(84,788)(12,023)

21,698,161
67,212,992
93,223,197$1,541,463,998

21,698,161
67,153,984
95,099,102$1,543,184,084―(59,008)
1,875,905$1,720,086$3,587,656$―$2,461,363
1,126,293$3,587,656*1 General and specific reserves for possible losses on loans relevant to Loans and Bills Discounted are excluded.

Items other than Loans and Bills Discounted are recorded at the consolidated balance sheet amounts due to immateriality of their reserves.

*2 Derivative Transactions recorded in Trading Assets, Trading Liabilities, Derivatives other than for Trading Assets, Derivatives other than for Trading

Liabilities, and others are presented as a lump sum.
Net claims and debts that arose from derivative transactions are presented on a net basis, and the item that is net debts in total is presented in brackets.
*3 The deferred method is mainly applied. “Treatment of Hedge Accounting for Financial Instruments that Reference LIBOR” (ASBJ Practical Solutions No.40,
September 29, 2020) is applied to these hedge transactions.

203

Financial Instruments (2)2021
Consolidated Balance
Sheet Amount

2020
Consolidated Balance
Sheet AmountThousands of U.S.
dollars2021
Consolidated Balance
Sheet Amount¥479,094¥451,348$4,327,084

304,404

238,797

2,749,315

Millions of yen
As of March 31,
Category

Stocks and others without a quoted market
price *1
Investments in Partnerships and others *2*1 Stocks and others without a quoted market price include unlisted stocks and others and in accordance with Article 5 of “Implementation Guidance on

About Mizuho(Note 1) The following are the consolidated balance sheet amounts of Stocks and others without a quoted market price, andInvestments in Partnerships and others. These amounts are not included in Money Held in Trust and Other
Securities in fair value information of financial instruments.

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Disclosures about Fair Value of Financial Instruments” (ASBJ Guidance No.19, July 4, 2019), these items are not subject to disclosure of the fair value.

(Note 2) Projected redemption amounts after the consolidated balance sheet date for financial assets and securities withmaturities

3-5 years

5-7 years

7-10 years

Millions of yen
Over 10 years

Due from Banks¥47,312,441¥―¥―
Other Debt Purchased
2,920,324
145,801
26,982
Securities
18,471,690
6,750,883
2,706,519
Bonds Held to Maturity―
380,000
100,000
Japanese Government Bonds―
380,000
100,000
Foreign Bonds―――
Other Securities with Maturities
18,471,690
6,370,883
2,606,519
Japanese Government Bonds 15,458,468
3,583,610
780,500
Japanese Local Government
54,93359,155
159,603
Bonds
Japanese Corporate Bonds
361,194
712,751
638,370
Foreign Bonds
2,592,883
1,987,119
967,820
Other
4,209
28,24660,224*1
30,366,752
20,280,400
13,527,653
Loans and Bills Discounted
Total¥99,071,209 ¥27,177,085 ¥16,261,154¥―
15,866
1,498,794―――
1,498,794
200,800¥―
8,262
2,251,801―――
2,251,801
804,200¥―
90,243
6,176,695
382,335―
382,335
5,794,360
55,00022,363

148,939

18,500Within 1 year

1-3 years

295,898
936,577
43,155
6,894,499¥8,409,160

167,419592,403
1,054,307
4,616,420
76,935512,036
5,062,497
6,481,961¥7,322,561 ¥12,748,901

Appendix

Data section

As of March 31, 2021
Types of Financial Instruments

Our strategies forcreating value

million, respectively, on a consolidated basis.

Foundations for our
corporate value

partnership as the component of the trust property. In accordance with Article 27 of “Implementation Guidance on Accounting Standard for Fair Value
Measurement” (ASBJ Guidance No.31, July 4, 2019), these items are not subject to disclosure of the fair value.

3 During the fiscal years ended March 31, 2021 and 2020, the amounts of impairment (devaluation) were ¥4,490 million ($40,562 thousand) and ¥2,221

Message from theGroup CFO

*2 Investments in Partnerships and others are mainly silent partnership, investment partnership, and money held in trust with the investment in a silent

204

Financial Instruments (2)2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

3-5 years

5-7 years

7-10 years

Millions of yen
Over 10 years

Due from Banks¥40,014,084¥0¥―
Other Debt Purchased
2,424,118
79,12061,267
Securities
9,470,526
5,932,9784,199,417
Bonds Held to Maturity―
100,000
380,000
Japanese Government Bonds―
100,000
380,000
Foreign Bonds―――
Other Securities with Maturities
9,470,526
5,832,9783,819,417
Japanese Government Bonds
5,868,042
3,000,800
1,908,920
Japanese Local Government
11,51078,84992,608
Bonds
Japanese Corporate Bonds
385,739
729,659
606,761
Foreign Bonds
3,190,027
1,957,887
1,167,700
Other
15,20665,781
43,42630,971,690
18,612,197
14,023,152
Loans and Bills Discounted *1
Total¥82,880,419 ¥24,624,297 ¥18,283,836¥―
12,1552,202,884―――
2,202,884
407,400¥―
9,337
2,731,895―――
2,731,895
1,254,700¥―
101,0105,284,320
359,242―359,242
4,925,077
45,00013,82470,7984,400

As of March 31, 2020
Types of Financial Instruments

As of March 31, 2021
Types of Financial Instruments

Within 1 year

Within 1 year

1-3 years

1-3 years

3-5 years

265,524
1,476,926
39,2086,589,499¥8,804,540

266,738
576,830
1,109,641
3,387,349
30,017
911,497
4,699,673
7,462,871¥7,440,906 ¥12,848,202

5-7 years

Thousands of U.S. dollars
7-10 years Over 10 years

Due from Banks$427,316,125
$―
$―
$―
$―
$―
Other Debt Purchased
26,375,766
1,316,847
243,696
143,300
74,630815,063
Securities
166,832,463
60,972,576
24,444,718 13,536,803 20,337,799
55,786,633
Bonds Held to Maturity―
3,432,081
903,179――
3,453,178
Japanese Government Bonds―
3,432,081
903,179―――
Foreign Bonds
―
―
―
―
―
3,453,178
Other Securities with Maturities 166,832,463
57,540,495
23,541,539 13,536,803 20,337,799
52,333,455
Japanese Government Bonds 139,617,674
32,366,420
7,049,314
1,813,584
7,263,367
496,749
Japanese Local Government
496,151534,281
1,441,507
201,986
1,345,188
167,088
Bonds
Japanese Corporate Bonds
3,262,235
6,437,427
5,765,630
2,672,496
1,512,097
5,350,466
Foreign Bonds
23,418,387
17,947,253
8,741,152
8,458,969
9,522,284
41,694,548
Other
38,016
255,114543,936
389,768
694,8634,624,604
274,266,191 183,168,356 122,178,952 62,269,688 45,723,422
58,543,728
Loans and Bills Discounted *1
Total$894,790,545 $245,457,779 $146,867,366 $75,949,791 $66,135,851 $115,145,424*1 Amounts do not include loans to bankrupt, substantially bankrupt, and intensive control obligors and other loans, of which redemption amounts cannot be

projected, of ¥434,062 million ($3,920,358 thousand) and ¥416,117 million, and loans with no maturities of ¥656,847 million ($5,932,514 thousand) and¥692,982 million as of March 31, 2021 and 2020, respectively.
2 Financial assets, which all of the balance are constantly redeemed within one year, is omitted.

205

Financial Instruments (2)1-3 years

3-5 years

5-7 years

7-10 years

Millions of yen
Over 10 years

Deposits *1
Negotiable Certificates of
DepositBorrowed Money
Bonds and Notes *2
Total¥129,715,782¥2,688,012¥708,678¥28,581¥34,614¥136,736

16,870,942
6,375,199
1,411,438¥154,373,363

236,921233,245
1,603,553¥4,761,732

84,900273,162
1,755,540¥2,822,280―
233,861
1,465,924¥1,728,367―
125,876
1,362,291¥1,522,782―
170,477865,140¥1,172,355

As of March 31, 2020
Types of Financial Instruments

Within 1 year

1-3 years

3-5 years

5-7 years

7-10 years

Millions of yen
Over 10 years

Deposits *1
Negotiable Certificates of
DepositBorrowed Money
Bonds and Notes *2
Total¥127,327,062¥2,904,265¥742,661¥46,167¥42,651¥126,864

12,985,294
4,104,930
456,009¥144,565,541

232,271376,271
2,153,502¥5,666,310

66,280
192,518
1,503,198¥2,504,658―
220,485
1,170,849¥1,437,502―
112,980
1,126,630¥1,282,262―
202,761
676,550¥1,006,175

As of March 31, 2021
Types of Financial Instruments

Within 1 year

1-3 years

3-5 years

5-7 years

Thousands of U.S. dollars
7-10 years
Over 10 years$1,171,565,955$24,277,569$6,400,636$258,144$312,627$1,234,978152,374,844
57,579,472
12,747,821$1,394,268,092

2,139,827
2,106,621
14,482,960$43,006,977

766,799
2,467,144
15,855,673$25,490,252―
2,112,189
13,239,926$15,610,259―
1,136,891
12,303,938$13,753,456―
1,539,721
7,813,770$10,588,469

Deposits *1
Negotiable Certificates of
DepositBorrowed Money
Bonds and Notes *2
Total*1 Demand deposits are included in “Within 1 year.”*2 Amounts do not include Bonds and Notes with no maturities of ¥1,858,000 million ($16,781,069 thousand) and ¥1,820,000 million as of March 31, 2021 and2020, respectively.

About Mizuho

Within 1 year

Message from theGroup CFO

As of March 31, 2021
Types of Financial Instruments

Our strategies forcreating value(Note 3) Projected repayment amounts after the consolidated balance sheet date for Bonds and Notes, Borrowed Money,
and other interest-bearing liabilities

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Appendix

Data section

Foundations for our
corporate value

3Interest-bearing liabilities, which all of the balance are constantly paid within one year, is omitted.

206

Financial Instruments (2)2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

3. Matters relating to breakdown of fair value of financial instruments by level
Fair values of financial instruments are categorized into three levels as below on the basis of the observability and themateriality of the valuation inputs used in fair value measurements.
Fair values of Level 1: Fair values measured by quoted prices of the assets or liabilities being measured which are givenin active markets among observable valuation inputs
Fair values of Level 2: Fair values measured by inputs other than inputs included within Level 1 among observablevaluation inputs
Fair values of Level 3: Fair values measured by unobservable valuation inputs
When several inputs that have significant impact on fair value measurement are used and those inputs are categorized
into different levels, the fair value is categorized into the lowest priority level for fair value measurement among the levels
in which each of the inputs belongs.

207

Financial Instruments (3)Level 3

Total

¥－

¥46,102¥636,815¥682,918

1,797,490

11,106－

1,808,597－

108,835－

108,835－
98,183
770,911－

1,518,933
0
1,879,783
551,395

1,897
223
130,5323

1,520,830
98,4072,781,227
551,399

2,857,921
20,597,775－
322,807

8,063－

2,865,985
20,920,582－

463,559－

463,559－
5,157,651
40,067653,764
6,502,601－

2,107,142
773,659
13,9202,760,906
12,433,912
53,988

57,1024,601,052

28,902

4,687,057－
168,398
3,538－¥31,549,042

3,305,074
338,917
8,339
91,452¥20,403,726

25,58348,563
17,472
3,002¥3,795,782

3,330,657
555,879
29,35094,454¥55,748,550¥2,082,161¥264,577¥132¥2,346,872

57,232

4,412,401

3,960

4,473,594－
200,835－－¥2,340,229

3,323,191
116,626
9,443
112,257¥8,238,497

725
45,11916,631
1,750¥68,319

3,323,916
362,581
26,075
114,007¥10,647,046

Appendix* Investment trust and others applying the transitional measures set forth in Article 5, Item 6 of “Cabinet Office Ordinance for Partial Revision of the Ordinanceon the Terminology, Forms, and Preparation Methods of the financial statements” (Cabinet Office Ordinance No. 9 March 6, 2020) are not included in abovetable. The financial assets and liabilities of the relevant investment trust and others in the consolidated balance sheet is ¥2,307,126 million and ¥55,548
million.

About Mizuho

Level 1

Message from theGroup CFO

Other Debt Purchased
Trading Assets
Trading Securities
Japanese Government Bonds
Japanese Local Government
Bonds
Japanese Corporate Bonds
StocksOther
Money Held in Trust
Securities
Other Securities
StocksJapanese Government Bonds
Japanese Local Government
Bonds
Japanese Corporate Bonds
Foreign Bonds
Other
Derivative Transactions
Interest Rate and Bond-Related
Transactions
Currency-Related Transactions
Stocks-Related Transactions
Commodity-Related Transactions
Credit Derivative Transactions
Total Assets
Trading Liabilities
Securities Sold, Not yet Purchased
Derivative Transactions
Interest Rate and Bond-Related
Transactions
Currency-Related Transactions
Stocks-Related Transactions
Commodity-Related Transactions
Credit Derivative Transactions
Total Liabilities

Our strategies forcreating value

As of March 31, 2021

Foundations for our
corporate value

Millions of yen
Fair Value
Level 2

Data section(1)Financial instruments recorded at fair value in the consolidated balance sheet

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

208

Financial Instruments (3)2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Thousands of U.S. dollars
As of March 31, 2021

Other Debt Purchased
Trading Assets
Trading Securities
Japanese Government Bonds
Japanese Local Government
Bonds
Japanese Corporate Bonds
StocksOther
Money Held in Trust
Securities
Other Securities
StocksJapanese Government Bonds
Japanese Local Government
Bonds
Japanese Corporate Bonds
Foreign Bonds
Other
Derivative Transactions
Interest Rate and Bond-Related
Transactions
Currency-Related Transactions
Stocks-Related Transactions
Commodity-Related Transactions
Credit Derivative Transactions
Total Assets
Trading Liabilities
Securities Sold, Not yet Purchased
Derivative Transactions
Interest Rate and Bond-Related
Transactions
Currency-Related Transactions
Stocks-Related Transactions
Commodity-Related Transactions
Credit Derivative Transactions
Total Liabilities

Level 1

Fair Value
Level 2

Level 3

Total$－

$416,386$5,751,588$6,167,974

16,234,564

100,314－

16,334,878－

982,977－

982,977－
886,775
6,962,716－

13,718,690－
16,977,814
4,980,093

17,1352,022
1,178,939
33

13,735,825
888,797
25,119,469
4,980,126

25,812,156
186,034,819－
2,915,530

72,830－25,884,986
188,950,349－

4,186,772－

4,186,772－
46,582,832
361,882－

5,904,663
58,730,146－－

19,031,268
6,987,529
125,728－

24,935,931
112,300,507
487,610－515,736

41,555,750

261,045

42,332,531－
1,520,945
31,958－$284,944,383

29,850,744
3,061,030
75,325825,977$184,282,211

231,062438,613
157,809
27,113$34,282,714

30,081,806
5,020,588
265,092
853,090$503,509,308$18,805,649$2,389,611$1,200$21,196,460

516,90939,851,889

35,77340,404,571－
1,813,906－－$21,136,464

30,014,371
1,053,348
85,296
1,013,882$74,408,397

6,555
407,505150,208
15,808$617,049

30,020,926
3,274,759
235,504
1,029,690$96,161,910* Investment trust and others applying the transitional measures set forth in Article 5, Item 6 of “Cabinet Office Ordinance for Partial Revision of the Ordinanceon the Terminology, Forms, and Preparation Methods of the financial statements” (Cabinet Office Ordinance No. 9 March 6, 2020) are not included in abovetable. The financial assets and liabilities of the relevant investment trust and others in the consolidated balance sheet is $20,837,482 thousand and $501,701
thousand .

209

Financial Instruments (3)Total¥11,397－¥2,513,688
7,700¥2,525,086
7,700

489,514－－¥489,514
¥－
－
－
－
¥－

－
414,085－¥425,482¥133,303,018
17,191,241
7,349,171
9,712,019¥167,555,450－－
84,213,843¥86,735,232¥－－
86,117
817,353¥903,470

489,514414,085
84,213,843¥87,650,229¥133,303,018
17,191,241
7,435,289
10,529,372¥168,458,921

Thousands of U.S. dollars
As of March 31, 2021

Other Debt Purchased
Money Held in Trust
Securities
Bonds Held to Maturity
Japanese Government Bonds
Foreign Bonds
Loans and Bills Discounted
Total Assets
Deposits
Negotiable Certificates of Deposit
Borrowed Money
Bonds and Notes
Total Liabilities

Level 1

Fair Value
Level 2

Level 3

Total

$－
－

$102,943－$22,703,110
69,546$22,806,053
69,546

4,421,189－－$4,421,189
$－
－
－
－
$－

－
3,739,930－$3,842,873$1,203,965,122
155,267,715
66,376,189
87,716,936$1,513,325,962－－
760,601,914$783,374,570$－－
777,796
7,382,165$8,159,961

4,421,189
3,739,930
760,601,914$791,638,632$1,203,965,122
155,267,715
67,153,985
95,099,101$1,521,485,923(Note 1) Explanation of valuation techniques and valuation inputs used in fair value measurements
AssetsOther Debt Purchased
Fair values of securitized products of other debt purchased are based on the values deemed as market prices
obtained by the reasonable estimate such as those obtained from brokers and financial information vendors and are
categorized as Level 3 when significant unobservable valuation inputs are used for the obtained price and as Level 2
when other inputs are used.
With respect to other debt purchased other than those described above, when the present values of the expected
future cash flows are considered to be fair values, those other debt purchased are mainly categorized as Level 3
since the discount rate and other significant valuation inputs are unobservable. When those are short term in natureand the book values are considered to be fair values, those other debt purchased are categorized as Level 3.
Trading Assets
Fair values of trading assets for which unadjusted quoted market prices in active markets are available arecategorized as Level 1, which includes mainly government bonds.
In the case the market is inactive even if the quoted market price is available, those trading assets are categorized
as Level 2, which includes mainly local government bonds and corporate bonds.
When fair vales are measured at the present value of the expected future cash flows and others using significant
unobservable inputs, those trading assets are categorized as Level 3, which includes mainly bonds with warrants
and trust beneficiary rights.

210

Financial Instruments (3)About Mizuho

Level 3¥－－Message from theGroup CFO

Level 1

Our strategies forcreating value

Other Debt Purchased
Money Held in Trust
Securities
Bonds Held to Maturity
Japanese Government Bonds
Foreign Bonds
Loans and Bills Discounted
Total Assets
Deposits
Negotiable Certificates of Deposit
Borrowed Money
Bonds and Notes
Total Liabilities

Foundations for our
corporate value

As of March 31, 2021

Data section

Millions of yen
Fair Value
Level 2

Appendix(2) Financial instruments other than financial instruments recorded at fair value in the consolidated balance sheet

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Money Held in Trust
With respect to securities managed as trust assets in a directed money trust for separate investment with the
management of securities as its primary purpose, fair values of stocks are measured at the price in stock exchanges
and bonds are measured at market price or valuation price obtained from brokers or financial information vendors
and are categorized as Level 2 or Level 3 based on the level of components.
The notes to Money Held in Trust based on holding purpose are stated in “42.Fair Value of Securities and Money
Held in Trust.”
Securities
Fair values of securities for which unadjusted quoted market prices in active markets are available are categorized
as Level 1 which includes mainly stocks and government bonds. In the case the market is inactive even if the quoted
market price is available, those securities are categorized as Level 2, which includes mainly local government bonds
and corporate bonds.
Fair values of investment trusts are measured at the disclosed net asset value and others. Those are not categorized
into Levels by applying the transitional measures set forth in Article 26 of “Implementation Guidance on AccountingStandard for Fair Value Measurements.”
Fair values of private placement bonds are measured by discounting the total amount of principal and interest andothers at interest rates based on the discount rate reflecting expected loss and various risk factors by categories
based on the internal ratings and terms and are mainly categorized as Level 3 since the discount rate isunobservable.
Fair values of securitized products are based on valuations obtained from brokers and others, and reasonably
measured prices based on the reasonable estimates of our management and are categorized as Level 3 whensignificant unobservable valuation inputs are used and as Level 2 when other inputs are used. In deriving reasonably
measured prices based on the reasonable estimates of our management mentioned above, we used the discounted
cash flow method. The price decision variables include default rates, recovery rates, prepayment rates, and discountrates.
The notes to Securities based on holding purpose are stated in “42.Fair Value of Securities and Money Held in Trust.”
Loans and Bills Discounted
Fair values of loans and bills discounted are measured by discounting the total amount of principal and interest andothers at interest rates based on the discount rate reflecting expected loss and various risk factors by categories
according to the types, internal ratings and terms of the loans and bills discounted and are categorized as Level 3
since the discount rate is unobservable.
In addition, fair values of claims against bankrupt obligors, substantially bankrupt obligors, and intensive control
obligors whose bad debts are measured at the present value of the expected future cash flows or the estimatedamounts calculated based on the recoverability from collateral and guarantees approximate the amount of claims
and others minus the amount of reserves for possible losses on loans in the consolidated balance sheet as of theconsolidated balance sheet date and those amount are considered to be fair values which are categorized as Level 3.
Among the loans and bills discounted, for those without a fixed maturity due to loan characteristics such as limiting
loans to within the value of pledged assets, book values are considered to be fair values since fair values are
expected to approximate book values based on the estimated loan periods, interest rates and other conditions. Fairvalues of those loans and bills discounted are categorized as Level 3.
Liabilities
Deposits and Negotiable Certificates of Deposit
For demand deposits, the payment amounts required on the consolidated balance sheet date (i.e., book values) areconsidered to be fair values.
In addition, fair values of time deposits and negotiable certificates of deposits are calculated by classifying thembased on their terms and by discounting the future cash flows. The discount rates used in such calculations are themarket interest rates. Since fair values of those whose deposit terms are short (i.e., within six months) approximatebook values, the book values are considered to be fair values and those fair values are categorized as Level 2.

211

Financial Instruments (3)About Mizuho
Appendix

Data section

Derivative Transactions
Derivative transactions that can be measured at unadjusted quoted prices in active markets are categorized as Level1, which includes such transactions as bonds futures and interest rate futures.
However, since most derivative transactions are over-the-counter transactions and there are no quoted market
prices, market values are measured using valuation techniques such as the discounted cash flow method and theBlack-Scholes model, depending on the type of transaction and the maturity period. The main inputs which are usedin those valuation techniques are interest rate, currency rate, volatility and others. In addition, price adjustments
based on credit risk of counterparty and credit risk of majority-owned consolidated subsidiaries and otherconsolidated subsidiaries themselves and price adjustments for unsecured funding are made. When unobservable
inputs are not used or impact of unobservable inputs are not material, transactions are categorized as Level 2, which
includes such transactions as plain vanilla interest rate swaps and foreign exchange forwards. When significant
unobservable inputs are used, transactions are categorized as Level 3, which includes transactions such ascommodity related transactions.

Message from theGroup CFO

Bonds and Notes
With respect to bonds and notes issued by MHFG and its majority-owned consolidated subsidiaries and otherconsolidated subsidiaries, fair values of bonds and notes with market prices are measured at the market prices andfair values of those without market prices are calculated by discounting the total amount of the principal and interestat the interest rates considered to be applicable to similar bonds and notes. Bonds and notes with market prices are
categorized as Level 2. Those without market prices are categorized as Level 3 when the impact from unobservablevaluation inputs is significant and as Level 2 when it is not significant.

Our strategies forcreating value

Borrowed Money
Fair values of borrowed money are measured mainly by discounting the total amount of the principal and interest ofsuch borrowed money classified by period lengths at the interest rates considered to be applicable to similar loans
and are categorized as Level 3 when the impact from unobservable valuation inputs is significant and as Level 2
when it is not significant.

Foundations for our
corporate value

Trading Liabilities
Fair values of trading liabilities for which unadjusted quoted market prices in active markets are available arecategorized as Level 1, which includes mainly listed stocks and government bonds.
In the case the market is inactive even if the quoted market price is available, those trading liabilities are categorized
as Level 2, which includes mainly corporate bonds.
When significant unobservable inputs are used, those trading liabilities are categorized as Level 3.

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

212

Financial Instruments (3)2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(Note 2)Information relating to fair values of Level 3 among the financial instruments recorded at fair value in the
consolidated balance sheet(1) Quantitative information of significant unobservable valuation inputs

As of March 31, 2021

Other Debt Purchased
Securitized products

Principal valuation
techniqueSignificant
unobservablevaluation input

Range of valuation
input

Discounted cash
flow method

Prepayment rate
Default rate
Discount rate

1.7％ － 16.5％
0.0％ － 1.0％
0.2％ － 1.7％

6.7％
0.0％
0.5％

Discounted cash
flow method

Discount rate

0.4％ － 4.3％

1.0％

Discounted cash
flow method

Discount rate

0.0％ － 6.6％

0.7％

Discounted cash
flow method

Prepayment rate
Default rate
Recovery rate
Discount rate

10.1％ － 18.2％
1.0％ － 24.2％
10.0％ － 67.7％
0.4％ － 1.4％

18.1％
1.7％
65.6％
1.1％

Discounted cash
flow method

Discount rate

0.0％ － 5.0％

0.4％

Discounted cash
flow method

Discount rate

1.4％

1.4％

IR – IR correlation

35.0％ － 100.0％－

FX – IR correlation
FX – FX correlation
Equity – IR
correlation
Equity – FX
correlation
Equity correlation
Equity volatility

22.9％ － 49.6％
42.5％ － 64.7％

－
－

25.0％

－

(32.5)％ － 50.0％－

0.0％ － 100.0％
8.4％ － 70.7％－－

Commodity volatility

0.0％ － 63.1％－

Default rate
Credit correlation

0.0％ － 4.8％
17.2％ － 100.0％－－

Weighted average

Trading Assets
Trading Securities
Securities
Japanese Corporate Bonds
Private placement bonds
Foreign Bonds
Securitized products

Other
Trading Liabilities
Securities Sold, Not yet Purchased
Derivative Transactions
Interest Rate and Bond-Related
Transactions
Currency-Related Transactions

Option valuation
model
Option valuation
model

Stocks-Related Transactions
Option valuation
model

Commodity-Related Transactions
Credit Derivative Transactions

213

Financial Instruments (3)Option valuation
model
Discounted cash
flow method

Other Debt Purchased
Trading Assets
Trading Securities
Japanese
Corporate Bonds
StocksOther
Money Held in Trust
Securities
Other Securities
StocksJapanese
Corporate Bonds
Foreign Bonds
Other
Trading Liabilities
Securities Sold,
Not yet Purchased
Derivative Transactions
Interest Rate andBond-Related
Transactions
Currency-Related
Transactions
Stocks-Related
Transactions
Commodity-Related
Transactions
Credit Derivative
Transactions¥151,219¥(3)¥(125)¥485,724

¥－

797

(6)

－

1,106

－

－

1,897

(2)

206
156,666
3

－
6,344
0

－
－
－

17
(31,596)
0

－
116
－

－
(999)
－

223
130,532
3

－
4,968
－

6,317

－

296

1,450

－

－

8,063

－

2,201,133

533

(633)

(70,069)－(23,821)

2,107,142－

847,601
18,66339,316548

40,442(897)(166,932)(4,393)

13,230－－－773,659
13,920

－
－

232

0

－

(100)

－

－

132

(0)

7,696

4,387

－

12,858－－24,942

13,343

16,277

10,141－(1,561)－－

24,857

10,526

69,571(67,728)

－

1,601

－

－

3,444

(33,744)

1,240

525

－

(924)

－

－

841

49

3,516

(2,522)

－

(246)

1,252

(748)

1,251

(3,471)(*1)Those amounts are included in the consolidated statement of income.
(*2)Those amounts are included in Net Unrealized Gains (Losses) on Other Securities of Other Comprehensive Income in the consolidated statement ofcomprehensive income.
(*3)Those are the transfers from Level 2 to Level 3, due to changes in observability of valuation inputs which are used in fair value measurements based onmarket liquidity. The transfer was made on the beginning of the accounting period.
(*4)Those are the transfers from Level 3 to Level 2, mainly due to increase of the observability of the discount rate which is used in fair value measurements forprivate placement bonds.

214

Financial Instruments (3)About Mizuho
Message from theGroup CFO

As of March 31, 2021

Our strategies forcreating value

Net amountTransfer toRecorded to of purchase, fair values
Recordedsale, issue,othertoof Level 3
andgains(losse comprehensi(*3)
settlements) for theve incomeperiod (*1)(*2)

Foundations for our
corporate value

BeginningbalanceMillions of yen
Unrealized
gains(losses)
on financial
assets andliabilities
held as ofTransferthefrom fairEndingconsolidatedbalanceasvalues ofbalanceof period
Level 3sheet(*4)
date among
the amountrecorded to
gains(losses)
for the period(*1)¥－¥636,815¥－

Data section

Gains(losses) for theperiod/ othercomprehensive income

Appendix(2) Adjustment sheet from beginning balance to ending balance as of period and unrealized gains (losses) recognized asgains (losses) for the period

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Gains(losses) for theperiod/ othercomprehensive income

Net amount
Beginningbalance

Recorded to of purchase,
Recordedsale, issue,
other
to
and
gains(losse comprehensis) for theve income settlement
period (*1)(*2)

Transfer tofair valuesof Level 3(*3)

As of March 31, 2021

Other Debt Purchased
Trading Assets
Trading Securities
Japanese
Corporate Bonds
StocksOther
Money Held in Trust
Securities
Other Securities
StocksJapanese
Corporate Bonds
Foreign Bonds
Other
Trading Liabilities
Securities Sold,
Not yet Purchased
Derivative Transactions
Interest Rate andBond-Related
Transactions
Currency-Related
Transactions
Stocks-Related
Transactions
Commodity-Related
Transactions
Credit Derivative
Transactions

Thousands of U.S. dollars
Unrealized
gains(losses)
on financial
assets andliabilities
held as ofTransferthefrom fairEndingconsolidatedbalance asvalues ofbalanceof period
Level 3sheet(*4)
date among
the amountrecorded to
gains(losses)
for the period(*1)$－$5,751,588$－$1,365,787$(28)$(1,129)$4,386,958

$－

7,205

(61)

－

9,991

－

－

17,135(26)

1,864
1,414,983
31－
57,304
－

－
－
－

158
(285,375)
2

－
1,051
－

－
(9,024)－2,022
1,178,939
33－
44,878－57,055－

2,674

13,101－－

72,830－19,880,183

4,814(5,724)(632,856)－(215,149)

19,031,268－

7,655,363
168,561

355,099
4,954

365,271(8,102)(1,507,698)(39,685)

119,494－－－

6,987,529
125,728

－
－

2,103

1

－

(904)

－

－

1,200

－

69,51339,627－116,132－－

225,272

120,517

147,014

91,593－(14,100)－－

224,507

95,075628,351(611,711)－

14,468－－31,108(304,775)

11,205

4,745－(8,349)

－

－

7,601

444

31,757(22,781)－(2,229)11,316(6,758)11,305(31,354)(*1)Those amounts are included in the consolidated statement of income.
(*2)Those amounts are included in Net Unrealized Gains (Losses) on Other Securities of Other Comprehensive Income in the consolidated statement ofcomprehensive income.
(*3)Those are the transfers from Level 2 to Level 3, due to changes in observability of valuation inputs which are used in fair value measurements based onmarket liquidity. The transfer was made on the beginning of the accounting period.
(*4)Those are the transfers from Level 3 to Level 2, mainly due to increase of the observability of the discount rate which is used in fair value measurements forprivate placement bonds.

215

Financial Instruments (3)Recovery rate
The recovery rate is an estimate of the percentage of contractual payments that would be collected in the event of a
default. A significant increase (decrease) in recovery rate would generally be accompanied by a decrease (increase)in the default rate. It would also generally significantly impact the valuation of the fair values of financial instruments
positively (negatively).
Discount rate
The discount rate is an adjustment rate to a benchmark market interest rate such as LIBOR or swap rates. It
primarily consists of a risk premium component which is the amount of compensation that market participants requiredue to the uncertainty inherent in the financial instruments’ cash flows resulting from credit risk. A significant increase(decrease) in discount rate would generally significantly impact the valuation of the fair values of financial
instruments negatively (positively).
Correlation
Correlation is the likelihood of the movement of one input relative to another based on an established relationship. A
significant change in correlation would significantly impact the valuation of derivatives either positively or negatively,
depending on the nature of the underlying assets.

About Mizuho
Message from theGroup CFO
Appendix

Volatility
Volatility is a measure of the expected change in variables over a fixed period of time. Some financial instruments
benefit from an increase in volatility and others benefit from a decrease in volatility. Generally, a significant increase(decrease) in volatility would result in a significant increase (decrease) in option values and, for a long position in an
option, it would result in a significant increase (decrease) in the fair values of financial instruments.

Our strategies forcreating value

Default rate
The default rate is an estimate of the likelihood of not collecting contractual payments. A significant increase(decrease) in the default rate would generally be accompanied by a decrease (increase) in the recovery rate and anincrease (decrease) in the discount rate. It would also generally significantly impact the valuation of the fair values offinancial instruments negatively (positively).

Foundations for our
corporate value(4) Explanation of the impact on fair values in the case where significant unobservable inputs are varied
Prepayment rate
The prepayment rate is the estimated rate at which voluntary unscheduled repayments of the principal of theunderlying assets are expected to occur. The movement of the prepayment rate is generally negatively correlatedwith borrower delinquency. A significant change in the prepayment rate would generally significantly impact thevaluation of the fair values of financial instruments either positively or negatively, depending on the structure offinancial instruments.

Data section(3) Explanation of the process of fair value measurement
In MHFG, middle-offices and back-offices have established policies and procedures related to the measurement of fairvalues and procedures related to usage of the valuation model. For the fair values and the level categories, the validity ofthe valuation techniques and valuation inputs used in fair value measurement are verified.
In fair value measurement, valuation models in which the nature, characteristics and risks of individual assets are mostappropriately reflected are used. In addition, when quoted prices obtained from third parties are used, the validity of theprices is verified by appropriate methods such as confirmation of valuation techniques and used valuation inputs andcomparison with the fair values of similar financial instruments.

Message from theGroup CEO

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216

Financial Instruments (3)2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

44. Fair Value of Securities and Money Held in Trust
The following tables contain information relating to “Securities,” Trading Securities, Short-term Bonds, certain other items in“Trading Assets,” Negotiable Certificates of Deposit in “Cash and Due from Banks,” certain items in “Other Debt
Purchased,” certain items in “Other Assets,” and “Money Held in Trust.”
Millions of yen

As of March 31, 2021

Bonds Held-to-Maturity (Total)
Bonds Whose Fair Values Exceed the Consolidated
Balance Sheet Amount Bonds Held-to-Maturity:
Japanese Government Bonds
Foreign Bonds
Bonds Whose Fair Values Do Not Exceed the Consolidated
Balance Sheet Amount Bonds Held-to-Maturity:
Japanese Government Bonds
Foreign Bonds

Consolidated
Balance
Sheet Amount

Fair value

Difference¥885,529¥903,599¥18,069¥754,131
479,958
274,173¥775,356
489,514285,842¥21,225
9,555
11,669¥131,397―
131,397¥128,242―
128,242¥(3,155)―(3,155)
Millions of yen

As of March 31, 2020

Bonds Held-to-Maturity (Total)
Bonds Whose Fair Values Exceed the Consolidated
Balance Sheet Amount Bonds Held-to-Maturity:
Japanese Government Bonds
Foreign Bonds
Bonds Whose Fair Values Do Not Exceed the Consolidated
Balance Sheet Amount Bonds Held-to-Maturity:
Japanese Government Bonds
Foreign Bonds

Consolidated
Balance
Sheet Amount

Fair value

Difference¥860,233¥875,329¥15,096¥743,537
479,936
263,600¥759,004
493,293265,711¥15,467
13,356
2,110¥116,696―
116,696¥116,325―
116,325¥(370)―(370)

Thousands of U.S. dollars

As of March 31, 2021

Bonds Held-to-Maturity (Total)
Bonds Whose Fair Values Exceed the Consolidated
Balance Sheet Amount Bonds Held-to-Maturity:
Japanese Government Bonds
Foreign Bonds
Bonds Whose Fair Values Do Not Exceed the Consolidated
Balance Sheet Amount Bonds Held-to-Maturity:
Japanese Government Bonds
Foreign Bonds

217

Fair Value of Securities and Money Held in Trust

Consolidated
Balance
Sheet Amount

Fair value

Difference$7,997,917$8,161,119$163,202$6,811,162
4,334,882
2,476,280$7,002,862
4,421,189
2,581,673$191,700
86,307
105,393$1,186,755―
1,186,755$1,158,257―
1,158,257(28,498)―(28,498)

Difference¥40,931,595¥1,603,253¥25,032,198
2,726,040
14,440,198
12,716,957
196,757
1,526,483
7,865,959
6,246,882
44,4181,574,659¥23,042,398
981,426
14,415,433
12,713,374
196,213
1,505,845
7,645,538
6,180,203
43,662
1,421,672¥1,989,800
1,744,614
24,765
3,583
544
20,637
220,42166,678755
152,986¥17,502,649
139,945
9,704,849
8,203,625
266,801
1,234,423
7,657,854
6,187,029
638,500
832,325¥17,889,197
186,294
9,774,593
8,238,926
267,459
1,268,208
7,928,309
6,286,717
638,687
1,002,904¥(386,547)(46,348)(69,743)(35,301)(657)(33,785)(270,454)(99,687)(187)(170,579)¥9,804¥9,804¥―

About Mizuho

Acquisition Cost

¥42,534,848

Appendix

Data section

Foundations for our
corporate value

Other Securities*1 (Total)
Other Securities Whose Consolidated Balance Sheet
Amount Exceeds Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Other Securities Whose Consolidated Balance Sheet
Amount Does Not Exceed Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Money Held in Trust
Other Money Held in Trust

Message from theGroup CFO

As of March 31, 2021

Our strategies forcreating value

Millions of yen
Consolidated
Balance
Sheet Amount

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

218

Fair Value of Securities and Money Held in Trust2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Millions of yen

As of March 31, 2020

Other Securities*1 (Total)
Other Securities Whose Consolidated Balance Sheet
Amount Exceeds Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Other Securities Whose Consolidated Balance Sheet
Amount Does Not Exceed Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Money Held in Trust
Other Money Held in Trust

219

Fair Value of Securities and Money Held in Trust

Consolidated
Balance
Sheet Amount

Acquisition Cost

Difference¥33,429,383¥32,256,623¥1,172,759*2¥19,735,511
2,021,965
5,670,266
4,029,441
73,9891,566,835
12,043,279
10,833,455
60,832
1,148,991¥18,188,232
854,061
5,640,229
4,022,901
73,3401,543,988
11,693,942
10,587,358
59,442
1,047,141¥1,547,278
1,167,903
30,0376,540
649
22,847349,337
246,097
1,389
101,850¥13,693,871
316,463
10,032,246
8,572,492
198,578
1,261,175
3,345,161
1,868,757
140,256
1,336,146¥14,068,390
418,007
10,116,384
8,623,055
199,072
1,294,256
3,533,999
1,913,900
140,407
1,479,690¥(374,519)(101,543)(84,137)(50,562)(494)(33,081)(188,837)(45,142)(150)(143,544)¥7,125¥7,125¥―

$226,085,611
24,621,031
130,420,867
114,856,914
1,777,076
13,786,877
71,043,713
56,420,541
401,175
14,221,997$208,114,144
8,864,037
130,197,193
114,824,552
1,772,162
13,600,479
69,052,914
55,818,315
394,348
12,840,251$17,971,467
15,756,994
223,674
32,362
4,914
186,398
1,990,799
602,226
6,827
1,381,746$158,080,292
1,263,955
87,652,185
74,093,435
2,409,696
11,149,054
69,164,152
55,879,966
5,766,799
7,517,387$161,571,509
1,682,569
88,282,098
74,412,266
2,415,635
11,454,197
71,606,842
56,780,323
5,768,496
9,058,023$(3,491,217)(418,614)(629,913)(318,831)(5,939)(305,143)(2,442,690)(900,357)(1,697)(1,540,636)$88,553$88,553$―*1 The fair value of Japanese stocks is determined based on the quoted market price as of March 31, 2021 (fair value of Japanese stocks with a quoted market

price is determined based on the average quoted market price, or other reasonable value during the last month of the fiscal year ended March 31, 2020).
*2 Unrealized Gains (Losses) or Difference include gains (losses) of ¥32,481 million ($293,362 thousand) and ¥(5,191) million which were recognized in thestatements of income for the fiscal years ended March 31, 2021 and 2020, respectively, by applying the fair-value hedge method.

Note: A summary of Trading Securities and Money Held in Trust for investment purposes and related unrealized gains andlosses recognized in the statement of income are as follows: *Unrealized
gains (losses)

Unrealized
gains (losses)

Thousands of U.S. dollars
2021
Unrealized
gains (losses)

As of March 31,¥7,238¥(16,818)$65,375
Thousands of U.S. dollars
2021
Unrealized
Fair value gains (losses)

Trading Securities

2020

Millions of yen
2021

2020

As of March 31,

Fair value

Unrealized
gains (losses)

Fair value

Unrealized
gains (losses)

Money Held in Trust for
Investment¥572,564¥2,305¥404,721¥(2,031)$5,171,281$20,821
AppendixMillions of yen
2021* Fair values of trading securities as of March 31, 2021 and 2020 are described in “43. Financial Instruments.”

220

Fair Value of Securities and Money Held in Trust

About Mizuho$14,480,250*2

Message from theGroup CFO

Difference$369,685,653

Our strategies forcreating value

Acquisition Cost

$384,165,903

Foundations for our
corporate value

As of March 31, 2021

Other Securities*1 (Total)
Other Securities Whose Consolidated Balance Sheet
Amount Exceeds Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Other Securities Whose Consolidated Balance Sheet
Amount Does Not Exceed Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Money Held in Trust
Other Money Held in Trust

Data section

Thousands of U.S. dollars
Consolidated
Balance
Sheet Amount

Message from theGroup CEO

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2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Other Securities Sold during the Fiscal Year
Millions of yen
Total amount Total amount
Proceedsof gainsof losses
from sales
on saleson sales

For the Fiscal Year ended March 31,
2021

Stocks
Bonds
Japanese Government Bonds
Japanese Local
Government Bonds
Japanese Corporate Bonds
Other
Total

¥208,758
29,396,462
29,359,467¥162,569
11,0998,991¥130,328
24,94524,912$1,885,460
265,502,735
265,168,601$1,468,289
100,248
81,206$1,177,098
225,306
225,009

697

4

-

6,299

40

-

36,297
24,257,982¥53,863,203

2,103
149,581¥323,249

32
103,619¥258,893

327,835
219,093,054$486,481,249

19,002
1,350,988$2,919,525

297
935,868$2,338,272

Millions of yen
Total amount Total amount
Proceedsof gainsof losses
from sales
on saleson sales

For the Fiscal Year ended March 31,
2020

Stocks
Bonds
Japanese Government Bonds
Japanese Local
Government Bonds
Japanese Corporate Bonds
Other
Total

Thousands of U.S. dollars
Total amount Total amount
Proceedsof gainsof losses
from sales
on saleson sales¥306,902
21,039,917
20,354,622¥189,638
40,971
38,972¥47,389
11,757
11,754

51,191

747-

634,103
27,028,303¥48,375,123

1,250
237,333¥467,943

2
112,126¥171,273

Unrealized Gains/Losses on Other Securities
Unrealized Gains/Losses on Other Securities as of March 31, 2021 and 2020 are as follows:

As of March 31,

Difference between Acquisition Cost and Fair Value*1
Other Securities*2
Deferred Tax Liabilities
Difference between Acquisition Cost and Fair Value, net of Taxes
Amount Corresponding to Non-controlling Interests
Amount Corresponding to Net Unrealized Gains (Losses) on
Other Securities Owned by Affiliated Companies, which is
attributable to MHFGNet Unrealized Gains (Losses) on Other Securities

2020

Thousands of
U.S. dollars
2021¥1,585,324
1,585,324(439,907)
1,145,417
16,783¥1,177,927
1,177,927(338,232)
839,695
18,922$14,318,324
14,318,324(3,973,155)
10,345,169
151,588

3,826

2,311

34,563¥1,132,460¥823,085$10,228,144

Millions of yen
2021*1 The difference between acquisition cost and fair value excludes ¥(32,481) million ($(293,362) thousand) and ¥5,191 million which were recognized in thestatements of income for the fiscal years ended March 31, 2021 and 2020, respectively, by applying the fair-value hedge method.
*2 Other Securities includes translation differences regarding Stocks and others without a quoted market price and Investments in Partnerships and others.

221

Fair Value of Securities and Money Held in Trust(a) Interest Rate and Bond-Related Transactions

As of March 31, 2021

Listed:Interest Rate Futures:
Sold
BoughtInterest Rate Options:
Sold
BoughtBond Futures:
Sold
BoughtBond Futures Options:
Sold
BoughtOver-the-Counter:
FRAs:
Sold
BoughtInterest Rate Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Receive Fixed / Pay Fixed
Interest Rate Options:
Sold
BoughtBond Options:
Sold
BoughtBond Other:
Sold
BoughtInter-company or Internal Transactions:Interest Rate Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Total

Contract value
Total
Over one year

Fair value

Millions of yen
Unrealized
gains (losses)¥5,352,260
11,939,410¥3,517,173
5,980,115¥(1,120)
2,199¥(1,120)
2,199

239,583
425,653

6,863
―

(111)
268

(3)
(315)

165,894
175,412

―
―

556
(455)

556
(455)

18,04877,541

―
―

(46)
169

(46)
119

42,665,863
42,609,545――

45,060(46,135)

45,060(46,135)

449,922,359
442,383,440
147,723,342
291,810

341,882,271
332,409,368
121,666,164
235,5023,014,574(2,817,850)
5,791(1,088)3,014,574(2,817,850)
5,791(1,088)13,900,704
14,152,261

9,346,439
9,516,824(53,039)
49,285(53,039)
49,285385,389
385,457

109,950
109,950(8,336)8,610(7,564)
7,707

8,120
21,342

―
―

(37)
188

(37)
188

5,083,479
13,498,632/

4,451,482
11,151,452/

983(106,637)¥92,832

983(106,637)¥92,174

222

Derivatives Information

Message from theGroup CFO

Transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated
statement of income.

Our strategies forcreating value(1) Derivative Transactions not Qualifying for Hedge Accounting

Foundations for our
corporate value

Contract value represents notional amounts for swap transactions and contract amounts for other transactions.
Contract value amounts do not indicate the market risk related to derivative transactions.

Data section

The fair value of derivatives not qualifying for hedge accounting and derivatives qualifying for hedge accounting as ofMarch 31, 2021 and 2020 is shown in the tables below. In the following tables:

Appendix

45. Derivatives Information

About Mizuho

Message from theGroup CEO

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2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

As of March 31, 2020

Listed:Interest Rate Futures:
Sold
BoughtInterest Rate Options:
Sold
BoughtBond Futures:
Sold
BoughtBond Futures Options:
Sold
BoughtOver-the-Counter:
FRAs:
Sold
BoughtInterest Rate Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Receive Fixed / Pay Fixed
Interest Rate Options:
Sold
BoughtBond Options:
Sold
BoughtBond Other:
Sold
BoughtInter-company or Internal Transactions:Interest Rate Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Total

223

Derivatives Information

Contract value
Total
Over one year

Fair value

Millions of yen
Unrealized
gains (losses)¥5,529,634
5,887,309¥1,591,823
2,471,820¥(31,113)
35,315¥(31,113)
35,315419,803757,178

40,35329,771(1,901)
2,961

(767)
1,352

624,565
625,248――(11,223)
6,551(11,223)
6,551

―
―

―
―

―
―

―
―

43,095,911
39,476,804

108,830
108,830(27,342)
29,903(27,342)
29,903444,709,861
431,142,776
121,038,451
329,536

336,523,057
326,305,878
95,223,531
313,093(9,755,139)
10,260,575
46,160(1,072)(9,755,139)
10,260,575
46,160(1,072)

13,056,382
12,156,026

7,542,710
7,821,714(255,511)
192,734(255,511)
192,734

579,001
577,602145,808
145,808(2,593)
4,993

(851)
3,096

―
15,585

―
―

―
422

―
422

4,718,469
13,413,792/

4,347,933
12,916,374/

131,693(273,174)¥352,242

131,693(273,174)¥351,611

$(10,123)
19,8682,163,870
3,844,414

61,993―(1,008)2,425(34)(2,852)

1,498,328
1,584,294

―
―

5,028
(4,112)

5,028(4,112)

163,013700,336

―
―

(416)
1,534

(416)
1,082

385,349,199
384,840,550――

406,978(416,690)

406,978(416,690)

4,063,605,127
3,995,515,176
1,334,206,487
2,635,571

3,087,809,531
3,002,252,241
1,098,863,483
2,127,010

27,227,014(25,450,237)
52,310(9,835)27,227,014(25,450,237)
52,310(9,835)125,548,269
127,820,277

84,415,098
85,953,981(479,037)
445,140(479,037)
445,140

3,480,754
3,481,376

993,050
993,050(75,296)
77,772(68,317)
69,61373,344
192,765

―
―

(335)
1,702

(335)
1,702

45,912,930
121,916,842/

40,204,860
100,717,601/

8,887(963,130)$838,439

8,887(963,130)$832,504

Appendix(Changes in Presentation)
With the enactment of "Accounting Standard for Fair Value Measurement" (ASBJ Statement No. 30, July 4, 2019) and otherstandards, Interest Rate-Related Transactions and Bond-Related Transactions are presented as Interest Rate and BondRelated Transactions from the fiscal year ended March 31, 2021.

About Mizuho$(10,123)
19,868Message from theGroup CFO

$31,766,383
54,011,161

Our strategies forcreating value$48,340,503
107,834,275

Foundations for our
corporate value

Listed:Interest Rate Futures:
Sold
BoughtInterest Rate Options:
Sold
BoughtBond Futures:
Sold
BoughtBond Futures Options:
Sold
BoughtOver-the-Counter:
FRAs:
Sold
BoughtInterest Rate Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Receive Fixed / Pay Fixed
Interest Rate Options:
Sold
BoughtBond Options:
Sold
BoughtBond Other:
Sold
BoughtInter-company or Internal Transactions:Interest Rate Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Total

Thousands of U.S. dollars
Unrealized
Fair value
gains (losses)

Data section

As of March 31, 2021

Contract value
Total
Over one year

Message from theGroup CEO

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224

Derivatives Information

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(b) Currency-Related Transactions

As of March 31, 2021

Listed:Futures:
Sold
BoughtOver-the-Counter:
Swaps
Forwards:
Sold
BoughtOptions:
Sold
BoughtInter-company or Internal Transactions:
Swaps
Forwards:
Sold
BoughtTotal

As of March 31, 2020

Listed:Futures:
Sold
BoughtOver-the-Counter:
Swaps
Forwards:
Sold
BoughtOptions:
Sold
BoughtInter-company or Internal Transactions:
Swaps
Forwards:
Sold
BoughtTotal

225

Derivatives Information

Contract value
Total
Over one year

Fair value

Millions of yen
Unrealized
gains (losses)¥15,615
78,356¥3,54032,799¥――¥――69,875,350

52,691,198

44,712

44,67063,766,682
37,077,896

3,575,704
1,863,936(735,730)
715,575(735,730)
715,575

4,513,631
4,015,482

1,676,580
1,645,075(81,683)
60,985(38,378)5,3652,214,554

1,773,095(10,879)

14,122

15
1,099
/

―
―
/

(0)
28
¥(6,992)(0)
28¥5,653

Fair value

Millions of yen
Unrealized
gains (losses)

Contract value
Total
Over one year

¥13,092
48,893¥329
14,608¥――¥――57,638,817

43,894,609

1,219(68,637)

75,494,594
37,624,376

3,175,535
1,697,421(199,399)
242,910(199,399)
242,910

5,145,203
4,805,185

1,383,542
1,114,200(82,922)67,035(36,588)
13,0262,858,190

1,991,772(151,891)

8,698

101
7,026
/

―
―
/

0
19
¥(123,027)

0
19¥(39,970)

$――631,099,623

475,895,936

403,833

403,451575,927,406
334,879,847

32,295,021
16,834,685(6,644,968)
6,462,927(6,644,968)
6,462,927

40,766,182
36,267,007

15,142,524
14,857,976(737,748)
550,805(346,624)
48,46220,001,399

16,014,227(98,264)

127,555

140
9,927
/

―
―
/

(0)
259
$(63,156)(0)
259$51,062

Fair value

Millions of yen
Unrealized
gains (losses)(c) Stock-Related Transactions

As of March 31, 2021

¥346,971
332,196¥40,915
8,219¥(37,863)(162)¥(37,863)(162)

2,008,214
1,476,846

456,209362,320(195,420)
187,767(106,406)
102,582

801,742526,254(4,324)(4,324)575,890465,704

435,591
392,903(57,255)
62,373(57,255)
62,373352,860
781,318/

281,444507,521/52,158
195,685¥202,959

52,158
195,685¥206,788

Appendix

Listed:Index Futures:
Sold
BoughtIndex Futures Options:
Sold
BoughtOver-the-Counter:
Equity Linked Swaps
Options:
Sold
BoughtOther:
Sold
BoughtTotal

Contract value
Total
Over one year

About Mizuho$――

Message from theGroup CFO

$31,973
296,241

Our strategies forcreating value$141,036
707,696

Foundations for our
corporate value

Listed:Futures:
Sold
BoughtOver-the-Counter:
Swaps
Forwards:
Sold
BoughtOptions:
Sold
BoughtInter-company or Internal Transactions:
Swaps
Forwards:
Sold
BoughtTotal

Thousands of U.S. dollars
Unrealized
Fair value
gains (losses)

Data section

As of March 31, 2021

Contract value
Total
Over one year

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

226

Derivatives Information

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

As of March 31, 2020

Listed:Index Futures:
Sold
BoughtIndex Futures Options:
Sold
BoughtOver-the-Counter:
Equity Linked Swaps
Options:
Sold
BoughtOther:
Sold
BoughtTotal

As of March 31, 2021

Listed:Index Futures:
Sold
BoughtIndex Futures Options:
Sold
BoughtOver-the-Counter:
Equity Linked Swaps
Options:
Sold
BoughtOther:
Sold
BoughtTotal

227

Derivatives Information

Contract value
Total
Over one year

Fair value

Millions of yen
Unrealized
gains (losses)¥251,436
425,430¥22,541
22,852¥(3,119)
10,721¥(3,119)
10,721

2,170,366
1,906,816

464,262
383,082(155,113)
146,827(49,255)
40,266471,137

374,198

91,88891,888476,111225,048

217,740
59,822(50,480)
57,065(50,480)
57,065

13,676429,384/

13,676
296,005/237
28,439¥126,467

237
28,439¥125,764

Contract value
Total
Over one year

Thousands of U.S. dollars
Unrealized
Fair value
gains (losses)$3,133,777
3,000,333$369,539
74,239$(341,972)(1,463)$(341,972)(1,463)

18,137,775
13,338,572

4,120,385
3,272,403(1,764,996)
1,695,877(961,043)
926,5027,241,167

4,753,024(39,057)(39,057)

5,201,322
4,206,142

3,934,170
3,548,624(517,116)
563,346(517,116)
563,346

3,186,963
7,056,708/

2,541,948
4,583,833/

471,084
1,767,390$1,833,093

471,084
1,767,390$1,867,671

2020

Contract value
As of March 31,

Listed:Futures:
Sold
BoughtOver-the-Counter:
Options:
Sold
BoughtTotal

Contract value
Fair
Unrealized
value gains (losses)

Total

Over
one year¥37,845
60,560¥11,877
27,336¥(6,361)
9,900

167,743
145,003/

74,372
58,215/(24,310)24,048¥3,275Total

Over
one year

Unrealized
Fairvalue gains (losses)¥(6,361)
9,900¥13,086
24,556¥6,097
13,371¥3,098(5,794)¥3,098(5,794)(24,310)24,048¥3,275

172,561
161,781/

73,05065,707/30,337(25,017)¥2,62330,337(25,017)¥2,623Thousands of U.S. dollars
2021
Contract valueOver
one year$341,812
546,973$107,274
246,900$(57,459)
89,417$(57,459)
89,417

1,515,026
1,309,640/

671,718
525,788/(219,572)
217,201$29,587(219,572)
217,201$29,587

Our strategies forcreating value

Listed:Futures:
Sold
BoughtOver-the-Counter:
Options:
Sold
BoughtTotal

Fair
Unrealized
value gains (losses)

Total

Foundations for our
corporate value

As of March 31,

About Mizuho

Millions of yen
2021

Message from theGroup CFO(d) Commodity-Related Transactions

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Appendix

Data section

Note: Commodities include oil, copper, aluminum and others.

228

Derivatives Information

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(e) Credit Derivative Transactions

As of March 31, 2021

Over-the-Counter:
Credit Derivatives:
Sold
BoughtTotal

As of March 31, 2020

Over-the-Counter:
Credit Derivatives:
Sold
BoughtTotal

As of March 31, 2021

Over-the-Counter:
Credit Derivatives:
Sold
BoughtTotal

Contract value
Total
Over one year

¥4,559,481
6,033,371/¥4,310,774
5,749,780/

Contract value
Total
Over one year

¥1,815,742
3,022,474/¥1,545,558
2,712,677/

Contract value
Total
Over one year

$41,180,288
54,492,155/$38,934,023
51,930,819/

Note: “Sold” and “Bought” indicate assumption and cession of credit risk, respectively.

229

Derivatives Information

Fair value

Millions of yen
Unrealized
gains (losses)¥88,213(107,766)¥(19,553)¥88,213(107,766)¥(19,553)

Fair value

Millions of yen
Unrealized
gains (losses)¥(4,725)
13,821¥9,096¥(4,725)
13,821¥9,096

Thousands of U.S. dollars
Unrealized
Fair value
gains (losses)$796,726(973,326)$(176,600)$796,726(973,326)$(176,600)

(2) Derivative Transactions Qualifying for Hedge Accounting(a) Interest Rate and Bond-related Transactions
Millions of yen¥17,600,318
5,784,000¥14,654,574
5,175,765¥121,074
185

7,150
5,876

6,146
5,818

(256)
(371)

37,083/33,658/Loans and others

Loans and others
Note 2¥120,631
Millions of yen

As of March 31, 2020

Loans, deposits,
borrowings, othersecurities and others

Contract value
Total
Over one year

Fair value¥18,151,743
6,140,649¥16,342,026
5,720,537¥293,030(133,511)

9,913
8,092

9,249
8,011

(136)
(69)

40,817/36,444/Loans and others

Loans and others
Note 2¥159,313

Appendix

Data section

Primary Method :Interest Rate Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Fair Value Hedge Method :Interest Rate Swaps:
Receive Float / Pay Fixed
Receive Float / Pay Float
Exceptional Accrual Method :Interest Rate Swaps:
Receive Float / Pay Fixed
Total

Primary
hedged items

About Mizuho

Fair value

Message from theGroup CFO

Loans, deposits,
borrowings, othersecurities and others

Our strategies forcreating value

Primary Method :Interest Rate Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Fair Value Hedge Method :Interest Rate Swaps:
Receive Float / Pay Fixed
Receive Float / Pay Float
Exceptional Accrual Method :Interest Rate Swaps:
Receive Float / Pay Fixed
Total

Contract value
Total
Over one year

Foundations for our
corporate value

As of March 31, 2021

Primary
hedged items

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

230

Derivatives Information

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

As of March 31, 2021

Primary Method :Interest Rate Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Fair Value Hedge Method :Interest Rate Swaps:
Receive Float / Pay Fixed
Receive Float / Pay Float
Exceptional Accrual Method :Interest Rate Swaps:
Receive Float / Pay Fixed
Total

Primary
hedged items

Loans, deposits,
borrowings, othersecurities and others

Thousands of U.S. dollars
Contract value
Total
Over one year
Fair value$158,962,413
52,239,890$132,357,065
46,746,435$1,093,520
1,673

64,57953,07255,51252,550(2,316)(3,357)334,928/

303,999/

Loans and others

Loans and others
Note 2$1,089,520

Notes: 1. Primarily the deferred method is applied under “Accounting and Auditing Treatment Relating to Adoption of
Accounting Standards for Financial Instruments for Banks” (JICPA Industry Committee Practical Guidelines No.
24, October 8, 2020).
2. Since derivative transactions qualifying for the exceptional accrual method are treated as a unit of hedged items
such as loans, those fair values are included in fair values of such loans in “43. Financial Instruments.”(Changes in Presentation)
With the enactment of "Accounting Standard for Fair Value Measurement" (ASBJ Statement No. 30, July 4, 2019) and otherstandards, Interest Rate-Related Transactions and Bond-Related Transactions are presented as Interest Rate and BondRelated Transactions from the fiscal year ended March 31, 2021.

231

Derivatives Information¥2,320,014¥13,718

1,099
15

―
―

(28)
0

1,192

1,192

(535)

10,783
10,783
/

2,506
2,506
/

(517)
1,096
¥13,733

Loans and other securities

Millions of yen
As of March 31, 2020

Primary Method :Swaps
Forwards:
Sold
BoughtFair Value Hedge Method :Swaps
Forwards:
Sold
BoughtTotal

As of March 31, 2021

Primary Method :Swaps
Forwards:
Sold
BoughtFair Value Hedge Method :Swaps
Forwards:
Sold
BoughtTotal

Primary
hedged items

Loans, deposits, borrowings,
parent company’s interest of
subsidiaries’ net assets andothersContract value
Total
Over one year

Fair value¥6,925,267¥2,692,960¥173,713

7,026
101

―
―

(19)
(0)

2,167

2,167

(52)

4,242
4,242
/

3,690
3,690
/

25
(57)
¥173,609

Loans and other securities

Primary
hedged items

Loans, deposits, borrowings,
parent company’s interest of
subsidiaries’ net assets andothersThousands of U.S. dollars
Contract value
Total
Over one year
Fair value$55,378,729$20,953,888$123,901

9,927
141

―
―

(258)
0

10,76910,769(4,834)

97,39597,395/

22,63822,638/(4,673)
9,901$124,037

Loans and other securities

Note: Primarily the deferred method is applied under “Accounting and Auditing Treatment Relating to Adoption of
Accounting Standards for Foreign Currency Transactions for Banks” (JICPA Industry Committee Practical Guidelines
No. 25, October 8, 2020).

232

Derivatives Information

About Mizuho¥6,131,532

Message from theGroup CFO

Fair value

Our strategies forcreating value

Loans, deposits, borrowings,
parent company’s interest of
subsidiaries’ net assets andothersFoundations for our
corporate value

As of March 31, 2021

Primary Method :Swaps
Forwards:
Sold
BoughtFair Value Hedge Method :Swaps
Forwards:
Sold
BoughtTotal

Contract value
Total
Over one year

Data section

Millions of yen
Primary
hedged items

Appendix(b) Currency-Related Transactions

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(c) Stock-Related Transactions
Millions of yen
As of March 31, 2021

Primary Method :Index Futures:
Sold
Fair Value Hedge Method :Forward Stock Agreements:
Sold
Total

Primary
hedged items

Contract value
Total
Over one year

Fair value

Other securities¥289,960¥―¥(3,940)

171,353/

145,695/(5,721)¥(9,661)

Other securities

Millions of yen
As of March 31, 2020

Primary Method :Index Futures:
Sold
Fair Value Hedge Method :Forward Stock Agreements:
Sold
Total

As of March 31, 2021

Primary Method :Index Futures:
Sold
Fair Value Hedge Method :Forward Stock Agreements:
Sold
Total

233

Derivatives Information

Primary
hedged items

Contract value
Total
Over one year

Fair value

―
¥―

¥―

¥―

148,913/

148,913/

25,031¥25,031

Other securities

Primary
hedged items

Thousands of U.S. dollars
Contract value
Total
Over one year
Fair value

Other securities$2,618,865$―$(35,588)

1,547,629/

1,315,889/(51,676)$(87,264)

Other securities46. Segment Information
Segment Information by Management Approach

1. Summary of Reportable Segment

Global Markets Company:
Investment services with respect to interest rates, equities and credits, etc., and other services
Asset Management Company:
Development of products and provision of services that match the asset management needs of its wide rangeof customers from individuals to institutional investors.
The reportable segment information, set forth below, is derived from the internal management reporting systems used bymanagement to measure the performance of the Group’s operating segments.
Management measures the performance of each of the operating segments in accordance with internal managerial
accounting rules and practices.

2. Calculating Method of Gross Profits (excluding the amounts of credit costs of trust accounts) + Net
Gains or Losses Related to ETFs and Others, Net Business Profits or Losses (excluding the amountsof credit costs of trust accounts, before reversal of (provision for) general reserve for losses onloans) + Net Gains or Losses Related to ETFs and Others, and Fixed Assets by Reportable Segment
The following information of reportable segment is based on internal management reporting:Gross profits (excluding the amounts of credit costs of trust accounts) + Net gains or losses related to ETFs and others isthe total amount of Interest Income, Fiduciary Income, Fee and Commission Income, Trading Income, Other Operating
Income,and Net gains or losses related to ETFs and others.
Net business profits or losses (excluding the amounts of credit costs of trust accounts, before reversal of (provision for)general reserve for losses on loans) + Net gains or losses related to ETFs and others is the amount of which General andadministrative expenses (excluding non-recurring expenses and others), Equity in income from investments in affiliates,
Amortization of goodwill and others (including amortization of intangible assets),and Others (consolidation adjustments) are
deducted from, or added to, Gross profits (excluding the amounts of credit costs of trust accounts) + Net gains or losses
related to ETFs and others.
Gross profits (excluding the amounts of credit costs of trust accounts) + Net gains or losses related to ETFs and others
relating to transactions between segments is based on the current market prices.
Fixed assets disclosed as asset information by segment are the total amount of tangible fixed assets and intangible fixed
assets. Fixed assets pertaining to Mizuho Bank, Ltd., Mizuho Trust & Banking Co., Ltd., and Mizuho Securities Co., Ltd.
have been allocated to each segment.

234

Segment Information

Foundations for our
corporate value

Global Corporate Company:
Services for Japanese overseas affiliated corporate customers and non-Japanese corporate customers, etc.

Data section

Corporate & Institutional Company:
Services for large corporations, financial institutions and public corporations in Japan

Appendix

Retail & Business Banking Company:
Services for individual customers, small and medium-sized enterprises and middle market firms in Japan

Our strategies forcreating value

Message from theGroup CFOMHFG has introduced an in-house company system based on the group’s diverse customer segments. The aim of thissystem is to leverage MHFG’s strengths and competitive advantage, which is the seamless integration of MHFG’s banking,trust and securities functions under a holding company structure, to speedily provide high-quality financial services thatclosely match customer needs.
Specifically, the company system is classified into the following five in-house companies, each based on a customer
segment: the Retail & Business Banking Company, the Corporate & Institutional Company, the Global Corporate Company,
the Global Markets Company, and the Asset Management Company. The services that each in-house company is incharge of are as follows:

About Mizuho

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

3. Gross Profits (excluding the amounts of credit costs of trust accounts) + Net gains or losses related
to ETFs and others, Net Business Profits or Losses (excluding the amounts of credit costs of trust
accounts, before reversal of (provision for) general reserve for losses on loans) + Net Gains or
Losses Related to ETFs and Others, and Fixed Assets by Reportable Segment
Millions of yen
MHFG (Consolidated)
For the Fiscal Year
ended March 31,2021

Gross profits:(excluding theamounts of credit
costs of trust
accounts) + Net
gains or losses
related to ETFs
and others¥
General andadministrative
expenses(excluding NonRecurring Losses
and others)
Equity in income
from investments
in affiliates
Amortization of
goodwill andothersOthersNet businessprofits or losses(excluding theamounts of credit
costs of trust
accounts, before
reversal of(provision for)general reserve
for losses onloans) + Net gains
or losses related
to ETFs and others ¥Fixed assets¥

235

Segment Information

Retail &Business
BankingCompany

Corporate &Institutional
Company

Global Corporate Global Markets
Company
Company

AssetManagement
Company

Others(Note 2)

Total

679,878 ¥491,861 ¥450,623 ¥487,212 ¥50,404 ¥40,750 ¥ 2,200,728

640,566

209,551

251,133

218,20232,94656,275

1,408,673

5,446

3,920

10,913―

1,114(1,480)19,912

2,256
―

99
―

360
―

839
―

7,642
―

1,005
―

12,201―42,502 ¥546,985 ¥

286,131 ¥
185,096 ¥

210,043 ¥
162,089 ¥

268,171 ¥
93,896 ¥10,930 ¥87 ¥(18,010) ¥799,766
767,521 ¥ 1,755,674

AssetManagement
Company

Others(Note 2)

Total

459,540 ¥

410,900 ¥411,472 ¥

52,883 ¥61,613 ¥ 2,072,822

673,132

215,687

245,324

202,645

33,08541,565

1,411,438

11,762

1,957

10,355

―

1,292

5,016

30,382

2,825
―

124
―

360
―

1,050
―

7,774
―

1,105
(5,942)

13,238(5,942)

12,219 ¥520,056 ¥245,686 ¥
197,279 ¥

175,571 ¥
160,978 ¥

207,777 ¥
92,308 ¥13,316 ¥90 ¥18,016 ¥672,585
769,051 ¥ 1,739,762

Our strategies forcreating value

676,414 ¥About Mizuho

Global Corporate Global Markets
Company
Company

Appendix

Data section

Gross profits:(excluding theamounts of credit
costs of trust
accounts) + Net
gains or losses
related to ETFs
and others¥
General andadministrative
expenses(excluding NonRecurring Losses
and others)
Equity in income
from investments
in affiliates
Amortization of
goodwill andothersOthersNet businessprofits or losses(excluding theamounts of credit
costs of trust
accounts, before
reversal of(provision for)general reserve
for losses onloans) + Net gains
or losses related
to ETFs and others ¥Fixed assets¥

Corporate &Institutional
Company

Foundations for our
corporate value

For the Fiscal Year
ended March 31,2020

Retail &Business
BankingCompany

Message from theGroup CFO

Millions of yen
MHFG (Consolidated)

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

236

Segment Information

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Thousands of U.S. dollars
MHFG (Consolidated)
For the Fiscal Year
ended March 31,2021

Retail &Business
BankingCompany

Corporate &Institutional
Company

Global Corporate Global Markets
Company
Company

Gross profits:(excluding theamounts of credit
costs of trust
accounts) + Net
gains or losses
related to ETFs
and others$ 6,140,517 $ 4,442,386 $General andadministrative
expenses(excluding NonRecurring Losses
and others)
5,785,459
1,892,621
Equity in income
from investments
in affiliates
49,18735,405
Amortization of
goodwill andothers
20,376894
Others――Net businessprofits or losses(excluding theamounts of credit
costs of trust
accounts, before
reversal of(provision for)general reserve
for losses onloans) + Net gains
or losses related
to ETFs and others $383,869 $ 2,584,276 $Fixed assets$ 4,940,255 $ 1,671,748 $AssetManagement
Company

Others(Note 2)

Total

4,069,933 $ 4,400,397 $

455,239 $368,049 $ 19,876,521

2,268,181

1,970,755

297,562508,270

12,722,848

98,564―

10,061(13,370)

179,847

3,251
―

7,578
―

69,021―

9,077―

110,197―

1,897,065 $ 2,422,064 $1,463,954 $
848,049 $

98,717 $ (162,668) $ 7,223,323
786 $ 6,932,097 $ 15,856,889

Notes: 1.Gross profits (excluding the amounts of credit costs of trust accounts) + Net gains or losses related to ETFs and others is reported
instead of sales reported by general corporations. Net gains or losses related to ETFs and others amounted to ¥ 2,034 million and¥ 10,602 million, of which ¥ (1,277) million and ¥ 7,334 million are included in the Global Markets Company for the fiscal year
ended March 31 2021 and 2020, respectively.
2.“Others” includes items which should be eliminated as internal transactions between each segment on a consolidated basis.
3.“Others” in Fixed assets includes assets of headquarters that have not been allocated to each segment, Fixed assets pertaining toconsolidated subsidiaries that are not subject to allocation, consolidated adjustments, and others. Among Fixed assets that havenot been allocated to each segment, some related expenses are allocated to each segment using the reasonable criteria of
allocation.
4.Following the change in allocation method for transactions between each segment and “Others” made in April, 2020,
reclassification was made on the above table for the fiscal year ended March 31 2020, to reflect the relevant change.

237

Segment Information

Gross Profits(excluding the amounts of credit costs of trust accounts) + Net
gains or losses related to ETFs and others¥
Net gains or losses related to ETFs and others
Other Ordinary Income
General and Administrative Expenses
Other Ordinary Expenses
Ordinary Profits recorded in Consolidated Statement of Income ¥2,200,728 ¥(2,034)
238,776(1,414,608)(486,554)
536,306 ¥2020

2,072,822 $(10,602)316,198(1,378,398)(362,142)
637,877 $Thousands of
U.S. dollars
2021

19,876,521(18,377)
2,156,576(12,776,451)(4,394,461)
4,843,808(b) The Total of Net Business Profits (excluding the amounts of credit costs of trust accounts, before reversal of(provision for) general reserve for losses on loans) + Net gains or losses related to ETFs and others of Segment
Information and Income before Income Taxes Recorded in Consolidated Statement of Income
Millions of yen
2021

2020

799,766 ¥—
6,266

672,585 $—46,2787,223,323—
56,594(209,915)(183,308)(1,895,915)

4,940

11,60544,624

10,091
115,857(74,842)

126,571(19,159)(35,854)

91,142
1,046,396(675,960)

652,163 ¥618,717 $

5,890,204

About Mizuho
Appendix

Net Business Profits(excluding the amounts of credit costs of trust accounts, before
reversal of (provision for) general reserve for losses on loans) +Net Gains (Losses) related to ETFs and others¥
Credit Costs for Trust Accounts
General and Administrative Expenses (non-recurring losses)
Expenses Related to Portfolio Problems (including reversal of(provision for) general reserve for losses on loans)
Gains on Reversal of Reserves for Possible Losses on Loansand others
Net Gains (Losses) Related to Stocks- Net Gains (Losses) related
to ETFs and others
Net Extraordinary Gains (Losses)
OthersIncome before Income Taxes Recorded in Consolidated¥
Statement of Income

Thousands of
U.S. dollars
2021

Message from theGroup CFO

Millions of yen
2021

Our strategies forcreating value(a) The Total of Gross Profits (excluding the amounts of credit costs of trust accounts) + Net gains or losses related to
ETFs and others of Segment Information and Ordinary Profits recorded in the Consolidated Statement of Income

Foundations for our
corporate value

The above amount of Gross profits (excluding the amounts of credit costs of trust accounts) + Net gains or losses related
to ETFs and others and that of Net business profits (excluding the amounts of credit costs of trust accounts, before
reversal of (provision for) general reserve for losses on loans) + Net gains or losses related to ETFs and others derived
from internal management reporting by reportable segment are different from the amounts recorded in Consolidated
Statement of Income.
The contents of the difference for the period are as follows:

Data section

4. The Difference between the Total Amounts of Reportable Segments and the Recorded Amounts inConsolidated Statement of Income, and the Contents of the Difference (Matters relating toadjustment to difference)

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

238

Segment Information

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

5. Related Information(a) Information about Geographic Areas(i) Ordinary income
Millions of yen
2021

Ordinary Income

Japan

¥

2,204,477 ¥Americas455,904

Europe¥Asia/Oceania
excluding Japan

192,099 ¥365,614 ¥Total

3,218,095
Millions of yen

2020

Ordinary Income

Japan

¥

2021

Ordinary Income

2,362,597 ¥

Japan

$

19,910,386 $Americas809,986 ¥Americas4,117,632 $EuropeAsia/Oceania
excluding Japan

256,126 ¥Europe557,990 ¥Total

3,986,701

Thousands of U.S. dollars
Asia/Oceania
excluding Japan
Total

1,735,002 $3,302,151 $

29,065,171

Notes: 1.The above table shows Ordinary Income instead of sales of non-financial companies.
2.Ordinary income is segmented by country and region based on the location of our group office inconsideration of geographical proximity, similarity of economic activities, and interrelationship of businessactivities.
(ii) Tangible fixed assets
Information on tangible fixed assets by geographical areas as of March 31, 2021 and 2020 is not disclosed sincetangible fixed assets in Japan accounted for more than 90% of tangible fixed assets.
(b) Information about Major Customers
Information about major customers is not disclosed since there are no outside customers accounted for more than
10% of Ordinary Income of the Company.

239

Segment Information

6. Information about Impairment Loss on Tangible Fixed Assets by Reportable Segment
Millions of yen
MHFG (Consolidated)

4,720 ¥

1,194 ¥

Asset
Management
Company

Global Markets
Company

2,367 ¥

1,957 ¥

― ¥

Total

Others2,555 ¥

12,793

Millions of yen
MHFG (Consolidated)
For the Fiscal Year
ended March 31, 2020

Retail & BusinessBanking Company

Impairment Loss¥

Corporate &Institutional
Company

4,579 ¥

Global Corporate
Company

1,206 ¥

Global Markets
Company

3,847 ¥

Asset
Management
Company

3,784 ¥

― ¥

Total

Others1,808 ¥

15,224

Thousands of U.S. dollars
MHFG (Consolidated)
For the Fiscal Year
ended March 31, 2021

Retail & BusinessBanking Company

Impairment Loss$

Corporate &Institutional
Company

42,630 $Global Corporate
Company

10,784 $Global Markets
Company

21,378 $AssetManagement
Company

17,675 $

― $

Total

Others23,080 $115,547

7. Information about Amortization and Unamortized Balance of Goodwill by Reportable Segment
Millions of yen
MHFG (Consolidated)
For the Fiscal Year ended
March 31, 2021

Amortization of Goodwill
Unamortized Balance ofGoodwill

Retail & BusinessBankingCompany

Corporate &Institutional
Company

Global Corporate Global Markets
Company
Company

AssetManagement
Company

About Mizuho¥

Global Corporate
Company

Message from theGroup CFO

Impairment Loss

Corporate &Institutional
Company

Others

Our strategies forcreating value

Retail & BusinessBanking Company

Total

¥

― ¥

― ¥

360 ¥

― ¥

2,670 ¥

713 ¥

3,743

¥

― ¥

― ¥

2,648 ¥

― ¥41,352 ¥12,249 ¥56,249Millions of yen

Foundations for our
corporate value

For the Fiscal Year
ended March 31, 2021

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Amortization of Goodwill
Unamortized Balance ofGoodwill

Retail & BusinessBankingCompany

Corporate &Institutional
Company

Global Corporate Global Markets
Company
Company

AssetManagement
Company

Others

Total

¥

— ¥

— ¥

360 ¥

― ¥

2,670 ¥

1,032 ¥

4,062

¥

— ¥

— ¥

3,899 ¥

― ¥44,020 ¥13,357 ¥61,276

Thousands of U.S. dollars
MHFG (Consolidated)
For the Fiscal Year ended
March 31, 2021

Amortization of Goodwill
Unamortized Balance ofGoodwill

Retail & BusinessBankingCompany

Corporate &Institutional
Company

Global Corporate Global Markets
Company
Company

AssetManagement
Company

Others

Total

$

― $

― $

3,251 $

― $24,115 $6,443 $

33,809

$

― $

― $

23,916 $― $373,483 $

110,634 $508,033

240

Segment Information

Appendix

For the Fiscal Year ended
March 31, 2020

Data section

MHFG (Consolidated)2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

8. Information about Gain on Negative Goodwill Incurred by Reportable Segment
For the fiscal years ended March 31, 2021 and 2020
・There is no applicable information.

47. Related Party

1. Related Party Transactions(1)Transactions with related parties
For the fiscal years ended March 31, 2021 and 2020
・There are no material transactions to disclose.
(2)Transactions between consolidated subsidiaries of MHFG and related parties
Corporate pension for employee
For the fiscal year ended March 31, 2021
Type

Corporate
pensionName ofCompanyorIndividual

Employee
Retirement
Benefit
Trust

Location─

Capital orlnvestment(Millions ofyen)─Descriptionof Businessor
Occupation

─

Share of
VotingRights(%)

Relationwith Related
Party

Descriptionof theTransaction

Transaction
Amount(Millions ofyen)

Items of
Account

Balance atthe End of
the Period(Millions ofyen)─

Pensionassetsunder theaccountingfor
employeeretirement
benefit

Partialreturn on
pensionassets¥ 225,709

──For the fiscal year ended March 31, 2020
・There are no material transactions to disclose.

2. Notes to Parent Company and Significant Affiliate
For the fiscal years ended March 31, 2021 and 2020
・There is no applicable information.

241

Segment Information、Related Party¥3,650.87¥3,372.96$32.97185.75176.87

1.68

185.75176.86

1.68

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 andDiluted Profit Attributable to Owners of Parent per Share of Common Stock are calculated under the assumptionthat the share consolidation had been adopted at the beginning of fiscal 2020.
2. Total Net Assets per Share of Common Stock is based on the following information.
Millions of yen
As of March 31,

Total Net Assets
Deductions from Total Net Assets
Stock Acquisition Rights
Non-Controlling Interests
Net Assets (year-end) related to Common
StockYear-end Outstanding Shares of Common
Stock, based on which Total Net Assets
per Share of Common Stock was
calculated

2021

2020

Thousands of U.S. dollars
2021¥9,362,207
105,932
134
105,797¥8,663,847
109,876213
109,662$84,557,513
956,760
1,217
955,543

9,256,275

8,553,971

83,600,753

2,535,360 Thousand shares

2,536,039 Thousand shares/

3. Profit Attributable to Owners of Parent per Share of Common Stock is based on the following information.
Millions of yen
For the fiscal years ended March 31,

Profit Attributable to Owners of Parent
Amount not attributable to Common Stock
Profit Attributable to Owners of Parent
related to Common Stock
Average Outstanding Shares of Common
Stock (during the period)

2021

2020

Thousands of U.S. dollars
2021¥471,020—¥448,568—$4,254,156—

471,020

448,568

4,254,156

2,535,683 Thousand shares

2,536,066 Thousand shares/

4. Diluted Profit Attributable to Owners of Parent per Share of Common Stock is based on the following information.
Millions of yen
For the fiscal years ended March 31,

Adjustment to Profit Attributable to Ownersof Parent
Increased Number of Shares of Common
Stock
Stock Acquisition Rights
Description of Dilutive Securities whichwere not included in the Calculation of
Diluted Profit Attributable to Owners of
Parent per Share of Common Stock asthey have no Dilutive effects

2021

2020

Thousands of U.S. dollars
2021

¥—

¥—

$—

89 Thousand shares
89 Thousand shares

158 Thousand shares
158 Thousand shares

/
/

—

—

/

242

Per Share Information

About Mizuho

U.S. dollars
2021

Message from theGroup CFO

2020

Data section

Net Assets per Share of Common Stock
Profit Attributable to Owners of Parent per Share ofCommon Stock
Diluted Profit Attributable to Owners of Parent per
Share of Common Stock

2021

Appendix

Yen
As of or for the fiscal years ended March 31,

Our strategies forcreating value

Per share information as of or for the fiscal years ended March 31, 2021 and 2020 are calculated based on the following
information:

Foundations for our
corporate value

48. Per Share Information

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

5. In the calculation of Net Assets per Share of Common Stock, MHFG shares outstanding in BBT trust account thatwere recognized as Treasury Stock in Shareholders’ Equity are included in Treasury Stock shares deducted fromthe number of issued shares. The number of such Treasury Stock shares deducted during the period is 2,554
thousand and 1,963 thousand as of March 31, 2021 and 2020, respectively.
In the calculation of Profit Attributable to Owners of Parent per Share of Common Stock and Diluted Profit
Attributable to Owners of Parent per Share of Common Stock, such Treasury Stock shares are included in
Treasury Stock shares deducted in the calculation of the Average Outstanding Shares of Common Stock during
the period. The average number of such Treasury Stock shares deducted during the period is 2,350 thousand and1,925 thousand as of March 31, 2021 and 2020, respectively.

49. Subsequent Events

Acquisition of Treasury Shares of Consolidated SubsidiaryMizuho Securities Co., Ltd. ("MHSC"), a consolidated subsidiary of MHFG, resolved in the board of directors meeting heldon June 16, 2021 to include the acquisition of its own shares in the agenda for General Meeting of Shareholders to be heldon June 23, 2021.
The details are as follows.
(1) Purpose for MHSC’s acquisition of its treasury shares
MHSC conducted the acquisition of its own shares for capital improvement following the MHFG Group's capital policy,
which MHFG, the parent company of MHSC, had presented in light of the MHFG Group's financial structure reforms.
(2) Details of the acquisition
Type of shares to be acquired: Common stock
The number of shares to be acquired: Up to 1,450 millions of shares
The acquisition price: Up to 370,000 millions of yen
The schedule of the acquisition: From June 23, 2021 to June 22, 2022
(3) Impact of MHSC's acquisition of its treasury shares on the MHFG Group's future consolidated results of operations or
financial condition
The sale of some of MHSC's shares is expected to impact the results of operations such as decreasing MHFG's taxable
income.

243

Per Share Information、Subsequent Events

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Non-Consolidated Financial Statements ofMizuho Financial Group, Inc. and Three Subsidiaries[Under Japanese GAAP]

Mizuho Financial Group, Inc.
245

Non-Consolidated Balance Sheet

246

Non-Consolidated Statement of Income

Mizuho Bank, Ltd.
247

Non-Consolidated Balance Sheet

249

Non-Consolidated Statement of Income

Mizuho Trust & Banking Co., Ltd.
250

Non-Consolidated Balance Sheet

252

Non-Consolidated Statement of Income

Mizuho Securities Co., Ltd.
253

Non-Consolidated Balance Sheet

256

Non-Consolidated Statement of Income

244

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries-Index

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Mizuho Financial Group, Inc.

Non-Consolidated Balance Sheet
Millions of yen
2021

As of March 31,

AssetsCurrent Assets
Cash and Due from Banks
Other Current Assets
Fixed Assets
Tangible Fixed Assets
Intangible Fixed Assets
Investments in Subsidiaries and Affiliates
Other Investments
Total Assets
Liabilities and Net Assets
Liabilities
Current Liabilities
Short-term Borrowings
Other Current Liabilities
Non-Current Liabilities
Total Liabilities
Net Assets
Shareholders' Equity
Common Stock
Capital Surplus
Capital Reserve
Retained Earnings
Appropriated Reserve
Other Retained Earnings
Retained Earnings Brought Forward
Treasury Stock
Valuation and Translation Adjustments
Net Unrealized Gains ( Losses) on Other Securities, net of Taxes
Stock Acquisition Rights
Total Net Assets
Total Liabilities and Net Assets

¥

¥

¥

¥

130,137
44,96585,171
14,039,114
52,5716,100
6,079,112
7,901,329
14,169,252¥

887,161
850,000
37,1617,884,373
8,771,534¥

5,397,584
2,256,767
1,196,659
1,196,659
1,949,956
4,350
1,945,606
1,945,606(5,798)(1)(1)
134
5,397,718
14,169,252¥¥

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥110.72=US$1.00, the foreign exchange rate on March 31, 2021, has been used for translation.

245

Non-Consolidated Balance Sheet

Thousands of
U.S. dollars
2021

2020

90,273
43,23347,03912,733,504
67,3188,117
6,079,198
6,578,869
12,823,777$

1,175,378
406,123
769,255
126,798,364
474,818
55,09554,905,283
71,363,168$ 127,973,742

893,384
860,000
33,384
6,567,949
7,461,334$

5,362,232
2,256,767
1,196,659
1,196,659
1,913,787
4,350
1,909,437
1,909,437(4,982)(3)(3)
213
5,362,442
12,823,777

48,749,864
20,382,655
10,807,980
10,807,980
17,611,598
39,28817,572,310
17,572,310(52,369)
(11)
(11)
1,217
48,751,070$ 127,973,742

8,012,655
7,677,023
335,632
71,210,017
79,222,672

For the Fiscal Years ended March 31,

Operating Income
Cash Dividends Received from Subsidiaries and Affiliates
Fee and Commission Income Received from Subsidiaries andAffiliates
Operating Expenses
General and Administrative Expenses
Operating Profits
Non-Operating Income
Non-Operating Expenses
Income before Income Taxes
Income Taxes:
Current
Deferred
Net Income¥¥

268,904
231,972¥

2020

75,42436,673Thousands of
U.S. dollars
2021$

2,428,691
2,095,123

36,932
37,97937,979230,925
132,777
136,930
226,771

38,75038,951
38,951
36,472
135,156
131,631
39,997

333,568
343,019
343,0192,085,672
1,199,215
1,236,732
2,048,155

1,229(1,143)
226,685

29
5,912
34,056

11,104(10,327)
2,047,378¥$

Appendix

Data section

Foundations for our
corporate value

Our strategies forcreating value

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥110.72=US$1.00, the foreign exchange rate on March 31, 2021, has been used for translation.

About Mizuho

Millions of yen
2021

Message from theGroup CFO

Non-Consolidated Statement of Income

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

246

Non-Consolidated Statement of Income

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Mizuho Bank, Ltd.

Non-Consolidated Balance Sheet

As of March 31,

AssetsCash and Due from Banks
Call Loans
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
Other Assets
Tangible Fixed Assets
Buildings
Land
Lease Assets
Construction in Progress
Other Tangible Fixed Assets
Intangible Fixed Assets
SoftwareLease Assets
Other Intangible Fixed Assets
Prepaid Pension Cost
Deferred Tax Assets
Customers' Liabilities for Acceptances and Guarantees
Reserves for Possible Losses on Loans
Reserve for Possible Losses on Investments
Total Assets

247

Non-Consolidated Balance Sheet

2020

Thousands of
U.S. dollars
2021¥38,833,234
958,3598,599,865
122,001430,330
5,013,413
503
34,372,765
80,871,269
1,966,593
8,103,925
843,058
244,714515,264
12,55929,83040,689357,432
301,586
4,061
51,784556,273
36,9506,535,786(385,129)(2,458)¥187,214,174$410,589,519
8,738,300
21,463,336
1,366,351
4,360,888
42,049,005
4,549
394,875,881
741,280,633
18,215,011
80,550,798
7,962,103
2,068,712
4,781,874
63,419721,833
326,265
3,254,122
2,716,474
24,690512,958
4,734,176―
61,669,849(4,841,954)―$1,796,272,567

Millions of yen
2021¥45,460,471
967,504
2,376,420
151,282
482,837
4,655,665
503
43,720,657
82,074,591
2,016,766
8,918,584
881,564
229,047
529,449
7,021
79,921
36,124360,296
300,768
2,733
56,794524,167―
6,828,085(536,101)―¥198,883,298

Total Liabilities and Net Assets¥139,043,379
1,213,576
7,469,615$1,309,282,696
9,583,676
79,126,036

170,648
2,105,067
3,255,476
15,084,290
717,422
911,779
7,465,797
25,042
983
1,074
3,092
20,54014,41938,723
61,915
6,828,085
191,490,080

276,869
411,089
3,795,423
11,394,924
716,394
1,100,670
8,018,493
19,841
765
637
1,770
25,943
18,672―
62,695
6,535,786
180,106,550

1,541,261
19,012,533
29,402,784
136,238,173
6,479,614
8,235,003
67,429,526
226,183
8,881
9,707
27,928
185,521130,236
349,741559,210
61,669,849
1,729,498,558

6,204,236
1,404,065
2,286,167
655,450
1,630,716
2,514,003
353,908
2,160,095
2,160,095
1,188,982
1,023,139
29,458136,384
7,393,218

6,163,034
1,404,065
2,286,328
655,418
1,630,910
2,472,640
315,177
2,157,463
2,157,463
944,588736,239
71,693
136,655
7,107,623

56,035,370
12,681,223
20,648,186
5,919,892
14,728,294
22,705,961
3,196,430
19,509,531
19,509,531
10,738,639
9,240,780
266,066
1,231,793
66,774,009¥198,883,298¥187,214,174$1,796,272,567

Appendix

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥110.72=US$1.00, the foreign exchange rate on March 31, 2021, has been used for translation.

About Mizuho¥144,963,780
1,061,104
8,760,834

Message from theGroup CFO2020

Our strategies forcreating value

Liabilities and Shareholders' Equity
Liabilities
Deposits
Call Money
Payables under Repurchase Agreements
Guarantee Deposits Received under Securities Lending
Transactions
Commercial Paper
Trading Liabilities
Borrowed Money
Foreign Exchange Liabilities
Bonds and Notes
Other Liabilities
Reserve for Bonus Payments
Reserve for Variable Compensation
Reserve for Possible Losses on Sales of Loans
Reserve for Contingencies
Reserve for Reimbursement of Deposits
Reserve for Reimbursement of Debentures
Deferred Tax Liabilities
Deferred Tax Liabilities for Revaluation Reserve for Land
Acceptances and Guarantees
Total Liabilities
Net Assets
Shareholders' Equity
Common Stock and Preferred Stock
Capital Surplus
Capital Reserve
Other Capital Surplus
Retained Earnings
Appropriated Reserve
Other Retained Earnings
Retained Earnings Brought Forward
Valuation and Translation Adjustments
Net Unrealized Gains (Losses) on Other Securities, net of Taxes
Net Deferred Hedge Gains (Losses), net of Taxes
Revaluation Reserve for Land, net of Taxes
Total Net Assets

Foundations for our
corporate value

As of March 31,

Thousands of
U.S. dollars
2021

Millions of yen
2021

Data section

Non-Consolidated Balance Sheet—(Continued)

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

248

Non-Consolidated Balance Sheet2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Mizuho Bank, Ltd.

Non-Consolidated Statement of Income

For the Fiscal Years ended March 31,

IncomeInterest Income
Loans and Bills Discounted
Securities
Fee and Commission Income
Trading Income
Other Operating Income
Other Income
Total Income
Expenses
Interest Expenses
Deposits
Fee and Commission Expenses
Trading Expenses
Other Operating Expenses
General and Administrative Expenses
Other Expenses
Total Expenses
Income before Income Taxes
Income Taxes:
Current
Deferred
Net Income

2020

Thousands of
U.S. dollars
2021¥1,146,971
828,466
227,314514,834
83,910204,734
297,966
2,248,418¥1,642,866
1,113,358
258,265
476,787
150,596
238,043
255,2032,763,497$10,359,212
7,482,534
2,053,059
4,649,882
757,858
1,849,120
2,691,173
20,307,245

361,789
138,759
91,804
349
148,741
802,123
469,828
1,874,636

1,013,852
570,830
91,650809
97,383
789,552
356,673
2,349,922

3,267,609
1,253,243
829,163
3,153
1,343,404
7,244,609
4,243,391
16,931,329

373,781413,574

3,375,916

95,987
10,404¥267,389

109,151(3,364)¥307,788

866,935
93,971$2,415,010

Millions of yen
2021

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥110.72=US$1.00, the foreign exchange rate on March 31, 2021, has been used for translation.

249

Non-Consolidated Statement of Income

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries¥2,010,405
22,134―26,092
130,476
9,804
321,504
3,362,267
6,313
321,181
102,139
7,176
65,721
27,2372,004
25,486
24,532953
65,962
14,008(4,196)¥6,413,579¥1,766,799
14,678198,053
32,493
169,750
7,125
958,624
3,367,475
7,865
359,752
86,7058,219
65,721―
12,76430,52927,8952,634
65,75914,755(3,689)¥7,076,682$18,165,769
200,000―
235,768
1,178,971
88,5932,905,071
30,381,016
57,0482,902,154
922,92164,843593,855
246,113
18,110230,289
221,673
8,616
596,027
126,578(37,916)$57,952,289

About Mizuho

2020

Appendix

Data section

Foundations for our
corporate value

AssetsCash and Due from Banks
Call Loans
Guarantee Deposits Paid under Securities Borrowing Transactions
Other Debt Purchased
Trading Assets
Money Held in Trust
Securities
Loans and Bills Discounted
Foreign Exchange Assets
Other Assets
Tangible Fixed Assets
Buildings
Land
Construction in Progress
Other Tangible Fixed Assets
Intangible Fixed Assets
Software
Other Intangible Fixed Assets
Prepaid Pension Cost
Customers' Liabilities for Acceptances and Guarantees
Reserves for Possible Losses on Loans
Total Assets

Message from theGroup CFO

As of March 31,

Thousands of
U.S. dollars
2021

Millions of yen
2021

Our strategies forcreating value

Non-Consolidated Balance Sheet

Message from theGroup CEO

Mizuho Trust & Banking Co., Ltd.

250

Non-Consolidated Balance Sheet2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Mizuho Trust & Banking Co., Ltd.

Non-Consolidated Balance Sheet―(Continued)

As of March 31,

Liabilities and Shareholders' Equity
Liabilities
Deposits
Call Money
Guarantee Deposits Received under Securities Lending
Transactions
Trading Liabilities
Borrowed Money
Foreign Exchange Liabilities
Bonds and Notes
Due to Trust Accounts
Other Liabilities
Reserve for Bonus Payments
Reserve for Variable Compensation
Provision for Retirement Benefits
Reserve for Reimbursement of Deposits
Reserve for Loss of Transfer
Deferred Tax Liabilities
Acceptances and Guarantees
Total Liabilities
Net Assets
Shareholders' Equity
Common Stock and Preferred Stock
Capital Surplus
Capital Reserve
Retained Earnings
Appropriated Reserve
Other Retained Earnings
Retained Earnings Brought Forward
Valuation and Translation Adjustments
Net Unrealized Gains (Losses) on Other Securities, net of Taxes
Net Deferred Hedge Gains (Losses), net of Taxes
Total Net Assets
Total Liabilities and Net Assets

2020

Thousands of
U.S. dollars
2021¥3,498,331
581,838¥3,761,075
807,706$31,610,477
5,257,415―
131,235
375,082――
1,160,608
23,141
3,199
380
260
1,558
4,814
15,51514,0085,809,974

289,789
170,146
255,860
23
10,0001,055,510
142,457
2,153
368
―
1,907
―
3,220
14,755
6,514,977―
1,185,825
3,389,201――
10,487,108
209,100
28,9103,435
2,353
14,08443,506140,195
126,579
52,498,188

538,824
247,369
15,505
15,505275,949
45,865230,083
230,083
64,781
67,360(2,579)603,605

516,339
247,369
15,505
15,505
253,465
41,484211,980
211,980
45,36549,981(4,615)561,705

4,868,745
2,235,201
140,103
140,1032,493,441
414,432
2,079,009
2,079,009
585,356
608,665(23,310)5,454,101¥6,413,579¥7,076,682$57,952,289

Millions of yen
2021

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥110.67=US$1.00, the foreign exchange rate on March 31, 2021, has been used for translation.

251

Non-Consolidated Balance SheetIncome before Income Taxes
Income Taxes:
Current
Deferred
Net Income¥55,962
38,922
21,25915,497
68,275
1,657
11,911
32,131
208,860¥59,132
37,305
24,61910,65470,6101,526
24,31917,124210,019$505,672
351,695
192,098
140,033
616,929
14,977
107,630
290,333
1,887,236

8,606
458
34,743―
3,847
80,986
21,787
149,970

13,445665
35,02720
11,45881,211
18,967160,130

77,7644,141
313,934―
34,768731,786
196,865
1,355,117

58,88949,888532,119

8,573
5,928
¥44,388

10,342
4,147¥35,398

77,46553,570$401,084

Appendix

Data section

Foundations for our
corporate value

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥110.67=US$1.00, the foreign exchange rate on March 31, 2021, has been used for translation.

About Mizuho

2020

Message from theGroup CFO

For the Fiscal Years ended March 31,

IncomeFiduciary Income
Interest Income
Loans and Bills Discounted
Securities
Fee and Commission Income
Trading Income
Other Operating Income
Other Income
Total Income
Expenses
Interest Expenses
Deposits
Fee and Commission Expenses
Trading Expenses
Other Operating Expenses
General and Administrative Expenses
Other Expenses
Total Expenses

Thousands of
U.S. dollars
2021

Millions of yen
2021

Our strategies forcreating value

Non-Consolidated Statement of Income

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

252

Non-Consolidated Statement of Income

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Mizuho Securities Co., Ltd.

Non-Consolidated Balance Sheet

As of March 31,

AssetsCurrent Assets
Cash and Due from Banks
Cash Segregated as Deposits for Customers and Others
Trading Assets
Trading Securities and Others
Derivatives
Operating Investment Securities
Receivables Related to Margin Transactions
Loans Receivable under Margin Transactions
Cash Collateral for Borrowed Securities under Margin
Transactions
Collateralized Short-term Financing Agreements-receivable
Deposits Paid for Securities Borrowed
Securities Purchased under Agreements to Resell
Advances Paid
Short-term Guarantee Deposits
Securities: Fail to Deliver
Variation Margin Paid
Short-term Loans Receivable
Advance Payments
Prepaid Expenses
Accounts Receivable-otherAccrued income
Other Current Assets
Less: Allowance for Doubtful Accounts
Total Current Assets
Noncurrent Assets
Tangible Fixed Assets
Intangible Fixed Assets
Investments and Other Assets
Investment Securities
Long-term Guarantee Deposits
Prepaid Pension Cost
Deferred Tax Assets
Other
Less: Allowance for Doubtful Accounts
Less: Allowance for Possible Losses on Securities
Total Noncurrent Assets
Total Assets

253

Non-Consolidated Balance Sheet

2020

Thousands of
U.S. dollars
2021¥369,894
554,281
6,222,426
2,776,197
3,446,228
34,33832,553
28,105¥533,288
387,043
6,461,814
2,366,879
4,094,934
33,43022,055
20,172$3,340,814
5,006,153
56,199,657
25,074,040
31,125,617
310,137
294,020
253,840

4,448
4,520,477
2,597,115
1,923,362
441
373,90915,26530,44036,085259
3,436
18,97434,426263(276)
12,247,197

1,883
4,296,231
2,131,439
2,164,792
579
544,402
12,971―37,298275
3,080
10,75634,2743,040(7)12,380,536

40,18040,828,010
23,456,604
17,371,406
3,987
3,377,076
137,871
274,936
325,9142,340
31,039171,371
310,935
2,380(2,498)110,614,142

19,77566,544314,486
240,729
11,75322,893
19,443
23,115(3,448)―400,806

11,196
61,637
302,584
237,673
10,572
21,27518,73918,308(3,435)(548)
375,419

178,611
601,0122,840,375
2,174,220
106,153
206,766
175,606
208,777(31,147)―
3,619,998¥12,648,003¥12,755,956$114,234,140

Millions of yen
2021

$43,039,760
15,143,496
27,896,264
2,291,674
359,40957,658
301,751
31,710,371
7,938,059
23,772,312
4,011,132
3,767,543
25,779―7,286,201
3,824,964
1,152,890
995
40,872
410,402104,453
229,094
7,122―
427
98,263,088

623,175
150,400
21,216
4,194
3,132
802,120620,079
135,600
19,828―2,111
777,618

5,628,394
1,358,381
191,626
37,88828,295
7,244,584

3,135
3,135

2,509
2,509

28,321
28,321¥11,684,945¥11,867,565$105,535,993

About Mizuho¥5,032,193
1,197,319
3,834,873
61,66847,395
7,427
39,9683,660,235
790,395
2,869,840
350,409
370,607
2,029
12,074
1,035,215
319,000
137,358
127
1,789
38,9593,022
13,531816
487
514
11,087,436

Message from theGroup CFO

¥4,765,362
1,676,687
3,088,674
253,734
39,793
6,383
33,4093,510,972
878,901
2,632,070
444,112417,1422,854―
806,728
423,500
127,648
110
4,525
45,43911,56525,365788―
47
10,879,689

Appendix

Total Liabilities

2020

Our strategies forcreating value

Liabilities
Current Liabilities
Trading Liabilities
Trading Securities and Others
Derivatives
Payables - unsettled trades
Payables Related to Margin Transactions
Borrowings on Margin Transactions
Cash Collateral for Loaned Securities under Margin Transactions
Collateralized Short-term Financing Agreements-payable
Deposits Received for Securities Loaned
Securities Sold under Agreements to Repurchase
Deposits Received
Guarantee Deposits Received
Securities: Fail to Receive
Variation Margin Received
Short-term Borrowings
Commercial Paper
Bonds and Notes Due within One year
Advances Received
Accounts Payable-otherAccrued Expenses
Income Taxes Payable
Reserve for Bonus Payments
Provision for Variable Compensation
Provision for Bonus Point Redemption
Other Current Liabilities
Total Current Liabilities
Noncurrent Liabilities
Bonds and Notes
Long-term Borrowings
Provision for Retirement Benefits
Provision for Loss on Head Office Transfer
Other Noncurrent Liabilities
Total Noncurrent Liabilities
Statutory Reserves
Reserve for Financial Instruments Transaction Liabilities
Total Statutory Reserves

Foundations for our
corporate value

As of March 31,

Thousands of
U.S. dollars
2021

Millions of yen
2021

Data section

Non-Consolidated Balance Sheet―(Continued)

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

254

Non-Consolidated Balance Sheet2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Mizuho Securities Co., Ltd.

Non-Consolidated Balance Sheet―(Continued)

As of March 31,

Net Assets
Shareholders' Equity
Common Stock
Capital Surplus
Additional Paid in Capital
Other Capital Surplus
Total Capital Surpluses
Retained Earnings
Other Retained Earnings Retained Earnings Brought Forward
Total Retained Earnings
Total Shareholders’ Equity
Valuation and Translation Adjustments
Net Unrealized Gains on (Operating) Investment Securities, net ofTax
Net Deferred Gains or Losses on Hedges, net of Tax
Total Valuation and Translation Adjustments
Total Net Assets
Total Liabilities and Net Assets

2020

Thousands of
U.S. dollars
2021¥125,167¥125,167$1,130,485

285,831
95,817
381,649

285,831
95,817
381,649

2,581,570
865,4083,446,978440,661
440,661
947,478

371,261
371,261
878,078

3,979,966
3,979,966
8,557,429

25,339(9,759)15,58020,066(9,754)
10,312

228,862(88,144)
140,718

Millions of yen
2021

963,058

888,3908,698,147¥12,648,003¥12,755,956$114,234,140

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥110.72=US$1.00, the foreign exchange rate on March 31, 2021, has been used for translation.

255

Non-Consolidated Balance Sheet35,642

30,166321,916

42,78674,437
152,257
630
73,514
408,177
56,850351,326
264,682
73,476
100,958
22,14839,411
19,994
5,797
283
2,612
86,643
4,210
221
90,632
13,748
―
7,099
―
6,649
15,830
38
318
67
―
―
8
728
267
33
58
648
739
―
8,032
68
4,194

31,52563,940111,981
2,621
90,075354,192
82,590271,602
237,737
57,92986,215
24,15142,322
19,702
4,436
(20)
3,000
33,864
4,744
179
38,429
1,110
23
607
480
―
2,860
8
253
17
41
151
4
1,262
720
―
―
132
―
96
―
134
―

386,439
672,307
1,375,156
5,696
663,967
3,686,572
513,465
3,173,107
2,390,560
663,629
911,838
200,038
355,960
180,588
52,3582,558
23,591
782,547
38,028
2,002
818,573
124,174―
64,119―60,055
142,974
351
2,875
606
―
―
72
6,580
2,418
298
531
5,860
6,681
―
72,547616
37,888

625

36

5,651

88,55014,761(3,167)
11,594¥76,956

36,679
5,158
2,310
7,468
¥29,210

799,773
133,319(28,604)
104,715$695,058

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥110.72=US$1.00, the foreign exchange rate on March 31, 2021, has been used for translation.

256

Non-Consolidated Statement of Income

About Mizuho$1,641,753
261,091

Message from theGroup CFO

¥149,514
23,881

Our strategies forcreating value¥181,774
28,907

Foundations for our
corporate value

2020

Data section

For the Fiscal Years ended March 31,

Operating Revenues
Commissions
Brokerage Commissions
Underwriting and Selling Fees, and Commissions from
Solicitation to Qualifying Investors
Offering, Selling, and Other Commissions and Fees, andCommissions from Solicitation to Qualifying Investors
Other commissions and Fees
Net Gain on Trading
Net Gain on Operating Investment Securities
Interest and Dividend Income
Total Operating Revenues
Interest Expenses
Net Operating Revenues
Selling, General and Administrative Expenses
Transaction-related Expenses
Personnel Expenses
Real Estate Expenses
Administrative Expenses
Depreciation and Amortization
Taxes and Dues
Provision of Allowance for Doubtful Accounts
Other
Operating Income
Non-operating Income
Non-operating Expenses
Ordinary Income
Extraordinary gain
Gain on Sales of Noncurrent Assets
Gain on Sales of Investment Securities
Gain on Sales of Shares of Subsidiaries and Affiliates
Gain on Extinguishment of Tie-in Shares
Extraordinary loss
Loss on Sales of Noncurrent Assets
Loss on Disposal of Noncurrent Assets
Loss on Sales of Investment Securities
Loss on Impairment of Investment Securities
Loss on Liquidation of Subsidiaries and Affiliates
Loss on Impairment of Golf Club Membership
Impairment Losses
Special Retirement Benefits
Loss Due to Transition to a Defined Contribution Pension Plan
Merger Expenses
Head Office Transfer Cost
Loss Related to Novel Coronavirus Disease
Loss on Liquidation of Business
Loss Related to System Migration
Provision of Allowance for Possible Losses on Securities
Provision of Allowance for Loss on Head Office Transfer
Provision of Reserve for Financial Instruments Transaction
Liabilities
Income before Income Taxes
Income Taxes – current
Income Taxes – deferred
Total Income Taxes
Net Income

Thousands of
U.S. dollars
2021

Millions of yen
2021

Appendix

Non-Consolidated Statement of Income

Message from theGroup CEO

2021/09/08 9:11:57 / 21754588_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

257

白頁

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

259

Key Metrics

260

Status of Mizuho Financial Group's
Consolidated Capital Adequacy

260

Scope of Consolidation

261

Risk-based Capital

275

Summary of Risk Management and Risk-weighted
Assets (RWA)

277

Linkages between Financial Statements
and Regulatory Exposures

282

Credit Risk

303

Counterparty Credit Risk

312

Securitization Exposures

319

Market Risk

322

Investment or Equity Exposure

322

Operational Risk

323

Composition of Leverage Ratio

325

TLAC Regulations

331

Geographical distribution of credit exposures usedin the countercyclical capital buffer

331

Indicators for Assessing Global Systemically
Important Banks (G-SIBs)

332

Status of Sound Management of Liquidity Risk

332

Liquidity Coverage Ratio

334

Status of Major Liquid Assets

334

Status of Major Funding

335

Compensation of Directors and Employees

258

Basel Regulatory Disclosures2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

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 standards agreed upon by the Basel Committee on Banking Supervision require our liquidity coverage ratio tosurpass certain minimum standards. We calculate our consolidated liquidity coverage ratio (the “Consolidated LCR”) in
accordance with the regulation “The Evaluation Criterion on the Sound Management of Liquidity Risk Defined, Based on
Banking Law Article 52-25, as One of Criteria for Bank Holding Companies to Evaluate the Soundness of Their
Management and the Ones of Their Subsidiaries and Others, which is also One of 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
12minimum 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
Note: Base Ⅲ Template No. from 15 to 17 are quarterly averages.

259

Key Metrics(millions of yen, except percentages)a
As ofMarch 31,
2021

b

c

As of
As of
December 31, September 30,
2020
2020

d

e

As of
June 30,
2020

As of
March 31,2020

¥7,849,969
9,701,931
11,385,395¥7,684,114
9,543,742
11,316,192¥7,452,628
9,467,504
11,132,750¥7,407,199
9,187,258
10,914,882¥7,244,776
9,024,404
10,722,278

67,481,983

66,124,705

64,404,983

65,180,377

62,141,217

11.63%
14.37%
16.87%

11.62%
14.43%
17.11%

11.57%
14.69%
17.28%

11.36%
14.09%
16.74%

11.65%
14.52%
17.25%

2.50%
0.01%
1.00%
3.51%

2.50%
0.01%
1.00%
3.51%

2.50%
0.01%
1.00%
3.51%

2.50%
0.01%
1.00%
3.51%

2.50%
0.01%
1.00%
3.51%

7.13%

7.12%

7.07%

6.86%

7.15%

200,546,630
4.83%

192,563,485
4.95%

195,811,781
4.83%

197,278,551
4.65%

220,977,568
4.08%

72,792,220

71,926,717

66,704,578

61,500,758

60,112,726¥53,607,048
135.8%¥51,806,256
138.9%¥49,157,712
135.6%¥49,131,828
125.2%¥43,816,756
137.3%

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

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, Subitem (d), etc. of the Ordinance for Enforcement of the Banking Law" (the FSA Notice No. 7 issued in 2014).

■ Scope of Consolidation

Message from theGroup CEO

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

About Mizuho(1) Scope of Consolidation for Calculating Consolidated Capital Adequacy Ratio(a) Difference from the Companies Included in the Scope of Consolidation Based on Consolidation Rules for
Preparation of Consolidated Financial Statements (the “Scope of Accounting Consolidation”)
None as of March 31, 2021 and 2020

As of March 31, 2021

As of March 31, 2020

160

126

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, 2021:

Mizuho Private Wealth Management Co., Ltd. Japan
Mizuho Credit Guarantee Co., Ltd. .................Japan
Mizuho Factors, Limited ..................................JapanJapan
UC Card Co., Ltd. .................................
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

J.Score CO., Ltd. ........................................... Japan
Mizuho Capital Co., Ltd. ..................................Japan

Banking
Trust and banking
Securities
Research andconsulting
Information technology
Investment
management
Consulting
Credit guarantee
Factoring
Credit card
Holding company
Subcontracted
operations
Real estate agency
Pension planrelated business
Application andSophisticationof Financial Technology
Lending
Venture capital

100.0%
100.0
95.8
100.0

100.0%
100.0
95.8
100.0

100.0
70.0

100.0
51.0

100.0
100.0
100.0
100.0
100.0
100.0

100.0
100.0
100.0
100.0
100.0
100.0

99.8
60.0

95.1
60.0

60.0

60.0

50.0
50.0

50.0
50.0

Foundations for our
corporate value

Mizuho Information & Research Institute, Inc. . Japan
Asset Management One Co., Ltd. .................. Japan

Main business

Proportion of
votinginterest (%)

Data section

Domestic
Mizuho Bank, Ltd. ...........................................Japan
Mizuho Trust & Banking Co., Ltd. ...................Japan
Mizuho Securities Co., Ltd. .............................Japan
Mizuho Research Institute Ltd. .......................Japan

Proportion ofownership
interest (%)

Appendix

Name

Country oforganization

260

Scope of Consolidation

Our strategies forcreating value

Consolidated subsidiaries

Message from theGroup CFO(b) Number of Consolidated Subsidiaries

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

Name

Country oforganization

Overseas
Mizuho Americas LLC .....................................U.S.A.
Mizuho Bank (China), Ltd. .............................. China
Mizuho International plc ..................................U.K.
Mizuho Capital Markets LLC ........................... U.S.A.
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
Banking
Securities and banking
Derivatives
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, 2021 and 2020.
(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, 2021 and 2020.
(e) Restrictions on Transfer of Funds or Capital within the Bank Holding Company’s Corporate Group
None as of March 31, 2021 and 2020.
(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, 2021 and 2020.

■ 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, in light of our business plans and strategic
targets to match the increase in risk-weighted assets acquired for growth, in addition to maintaining our capital above theminimum requirements of common equity Tier 1 capital ratio, Tier 1 capital ratio, total capital ratio, capital buffer ratio,
adequate 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.

261

Scope of Consolidation、Risk-based Capital(2) Composition of Capital, etc.
(a) CC1: Composition of Capital Disclosure(Millions of yen, except percentage)abc¥7,711,821¥7,465,494

1aof which: capital and stock surplus

3,392,708

3,393,235

2of which: retained earnings

4,421,438

4,173,882

1cof which: treasury stock (-)

7,124

6,414

26

of which: national specific regulatory adjustments (earnings to
be distributed) (-)

95,201

95,208

-

-

134

213

of which: other than above
1b

Subscription rights to common shares

3

Accumulated other comprehensive income and other disclosed
reserves

1,449,035

992,960

5Common share capital issued by subsidiaries and held by third
parties (amount allowed in group CET1)

7,361

7,549

6

Common Equity Tier 1 capital: instruments andreserves

9,168,353

8,466,218

8+9

Total intangible assets (net of related tax liability, excluding thoserelating to mortgage servicing rights)

459,854469,463

8

of which: goodwill (net of related tax liability, including thoseequivalent)

65,884

68,2489of which: other intangibles other than goodwill and mortgage
servicing rights (net of related tax liability)

393,969401,215

10

Deferred tax assets that rely on future profitability excluding thosearising from temporary differences (net of related tax liability)

12,34815,053

11

Deferred gains or losses on derivatives under hedge accounting

30,475

124,838

20,856

-

-

92

(2)

12

Shortfall of eligible provisions to expected losses

13

Securitization gain on sale

14

Gains and losses due to changes in own credit risk on fair valued
liabilities

21,49921,89615

Net defined benefit asset

769,795

587,912

16

Investments in own shares (excluding those reported in the net
assets section)

3,552

2,185

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, netof eligible short positions, where the bank does not own more than
10% of the issued share capital (amount above the 10% threshold)¥-¥-Foundations for our
corporate value

Common Equity Tier 1 capital: regulatory adjustments

(A)

(a)

Our strategies forcreating value

Directly issued qualifying common share capital plus related stock
surplus and retained earnings

Data section

1a+2-1c-26(1)AppendixCommon Equity Tier 1 capital: instruments and reserves

About Mizuho

Reference
As of March As of March
to Template31, 2020
31, 2021
CC2

262

Composition of Capital Disclosure

Message from theGroup CFO

Basel III
Template

Message from theGroup CEO

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(a) CC1: Composition of Capital Disclosure(Millions of yen, except percentage)abcBasel III
Template

Reference
As of March As of March
to Template31, 2021
31, 2020
CC2¥¥-

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

-

-

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)

1,318,383

1,221,441(C)

7,849,969

7,244,776

23

Amount exceeding the 15% threshold on specified items

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

-

-

30

32

Directly issued qualifying Additional Tier 1 instruments plus related
stock surplus of which: classified as liabilities under applicableaccounting standards

1,873,000

1,805,000

Qualifying Additional Tier 1 instruments plus related stock surplus
issued by special purpose vehicles and other equivalent entities

-

-

30
34-35

Additional Tier 1 instruments issued by subsidiaries and held by
third parties (amount allowed in group AT1)

17,43920,27733+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 phaseout from Additional Tier 1

-

-

35

of which: instruments issued by subsidiaries subject to phase
out

-

-

1,890,439

1,825,277

2,400

1,700

¥-

¥-

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

263

Composition of Capital Disclosure

(a) CC1: Composition of Capital Disclosure(Millions of yen, except percentage)abcBasel III
Template

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¥-¥-

36,07843,950--(E)38,47845,650(F)

1,851,961

1,779,627(G)

9,701,931

9,024,404

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 applicableaccounting standards

1,406,564

1,215,858

46

Tier 2 instruments plus related stock surplus issued by special
purpose vehicles and other equivalent entities

99,266130,184

48-49

Tier 2 instruments issued by subsidiaries and held by third parties(amount allowed in group Tier 2)

5,173

5,955

47+49

Eligible Tier 2 capital instruments subject to phase-out
arrangements included in Tier 2:instruments and provisions

168,706

337,412

Message from theGroup CFO

39

Investments in the capital of banking, financial and insurance
entities that are outside the scope of regulatory consolidation, netof eligible short positions, where the bank does not own more than
10% of the issued common share capital of the entity (amountabove 10% threshold)

About Mizuho

Reference
As of March As of March
to Template31, 2021
31, 2020
CC2

Additional Tier 1 capital (AT1)44

Additional Tier 1 capital ((D)-(E))

Tier 1 capital (T1 = CET1 + AT1)

47

of which: directly issued capital instruments subject to phaseout from Tier 2

30,73974,72549

of which: instruments issued by subsidiaries subject to phaseout

137,966

262,68650

Total of general allowance for loan losses and eligible provisions
included in Tier 2

5,476

10,782

5,476

4,228

-

6,554

1,685,186

1,700,193

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)

Our strategies forcreating value(4)

Foundations for our
corporate value

Tier 2 capital: instruments and provisions

Data section

Tier 1 capital (T1 = CET1 + AT1) ((C) + (F))

(5)

52

Investments in own Tier 2 instruments

1,388

970

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)¥-¥-Appendix45

264

Composition of Capital Disclosure

Message from theGroup CEO

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(a) CC1: Composition of Capital Disclosure(Millions of yen, except percentage)abcBasel III
Template

Reference
As of March As of March
to Template31, 2021
31, 2020
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¥334¥1,34955

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)

1,722

2,319

(J)

1,683,464

1,697,873(K)

11,385,395

10,722,278

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)

¥67,481,983 ¥62,141,217

(7)

61

Common Equity Tier 1 capital ratio (consolidated) ((C)/(L))

11.63%

11.65%

62

Tier 1 capital ratio (consolidated) ((G)/(L))

14.37%

14.52%

63

Total capital ratio (consolidated) ((K)/(L))

16.87%

17.25%

64

Total of bank CET1 specific buffer requirements

3.51%

3.51%

65

of which: capital conservation buffer requirement

2.50%

2.50%

66

of which: countercyclical buffer requirement

0.01%

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

7.13%

7.15%

Regulatory adjustments

(8)

72

Non-significant investments in the capital and other TLAC liabilitiesof other financials that are below the thresholds for deduction(before risk weighting)¥460,375¥455,356

73

Significant investments in the common stock of financials that are
below the thresholds for deduction (before risk weighting)

295,131

268,070

74

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)¥265,832¥351,227

265

Composition of Capital Disclosure

(a) CC1: Composition of Capital Disclosure(Millions of yen, except percentage)abcReference
As of March As of March
to Template31, 2021
31, 2020
CC2

Provisions (general allowance for loan losses)¥5,476¥4,22877

Cap on inclusion of provisions (general allowance for loan losses)

44,922

43,991

78

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")

-

6,554

79

Cap for inclusion of provisions in Tier 2 under internal ratingsbased approach

337,311

302,928

208,313416,627--

Capital instruments subject to phase-out arrangements

Message from theGroup CFO

76

About Mizuho

(9)

(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

168,706

337,41285

Amount excluded from T2 due to cap (excess over cap after
redemptions and maturities) (if the amount is negative, report as"nil")¥64,355¥1,270Appendix

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 or internal controls over financial reporting. Ernst & Young ShinNihon LLC does not give its opinion or conclusion concerning the capital adequacy ratio or ourinternal 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.

Our strategies forcreating value

Provisions included in Tier 2 capital: instruments andprovisions

Foundations for our
corporate value

Basel III
Template

Message from theGroup CEO

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

266

Composition of Capital Disclosure2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

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, 2021 As of March 31, 2020
(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

¥47,981,981
589,776
11,623,654¥41,069,745
584,686
18,581,488

2,707,711

2,243,161

3,208,004
12,589,294
582,368
43,697,262
83,704,675
2,084,756
1,719,349
6,174,020
1,135,449
620,224
1,109,107
31,402

2,688,273
13,248,734
411,847
34,907,234
83,468,185
2,044,415
1,944,060
5,206,121
1,103,622
636,139
846,782
32,4936,602,744

6,066,527(575,572)(424,446)(0)-¥225,586,211¥214,659,077¥133,312,406
17,192,572
1,312,790
18,607,255¥131,189,673
13,282,561
2,263,076
17,971,098

958,148

1,108,255

2,105,067
8,115,377
7,441,822
532,042456,045
10,321,672
1,160,608
1,739,671
5,862,013
104,131
2,935
71,049411,089
9,604,890
5,209,947
509,405
373,658
8,906,432
1,055,510
1,619,151
6,111,195
75,1752,559
62,113

683

944

1,074

637

6,762
22,09914,419¥3,135

6,443
27,851
18,672¥2,509267

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

Message from theGroup CEO

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(b) CC2:Reconciliation of regulatory capital to consolidated balance sheet(Millions of yen)

Items

b

Consolidated balance Consolidated balance
sheet as in published sheet as in publishedfinancial statements financial statementscdReference toTemplate CC1

Cross-reference toAppended template

About Mizuho

a¥53,1504-b

61,91562,6954-c

6,602,744¥216,224,003

6,066,527¥205,995,229

2,256,767
1,135,940
4,421,655(7,124)¥7,807,239

2,256,767
1,136,467
4,174,190(6,414)¥7,561,010

1,132,460

823,085

31,618136,384(139,514)
288,088

72,081
136,655(133,178)
94,317¥1,449,035¥992,960

134
105,797¥9,362,207¥225,586,211

213
109,662¥8,663,847¥214,659,077

1-a
1-b
1-c
1-d

5
Our strategies forcreating value

Deferred Tax Liabilities for Revaluation
Reserve for Land
Acceptances and Guarantees
Total Liabilities(Net Assets)
Common Stock
Capital Surplus
Retained Earnings
Treasury Stock
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
Total Accumulated Other Comprehensive
IncomeStock Acquisition Rights
Non-Controlling Interests
Total Net Assets
Total Liabilities and Net Assets¥215,557(a)7Foundations for our
corporate value

Deferred Tax Liabilities

Message from theGroup CFO

As of March 31, 2021 As of March 31, 2020

Appendix

Data section

Note: The regulatory scope of consolidation is the same as the accounting scope of consolidation.

268

Reconciliation of regulatory capital to consolidated balance sheet

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Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

Appended template
1. Shareholders' Equity(1) Consolidated Balance Sheet(Millions of yen)

Consolidated balance sheet items

As of March
31, 2021

As of March
31, 2020

1-a Common stock
1-b Capital surplus
1-c Retained earnings
1-d Treasury stock
Total shareholders' equity¥2,256,767
1,135,940
4,421,655(7,124)¥7,807,239¥2,256,767
1,136,467
4,174,190(6,414)¥7,561,010

Ref.

(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

269

Reconciliation of regulatory capital to consolidated balance sheet

Remarks(Millions of yen)
As of March
31, 2020

Remarks¥7,807,022¥7,560,702

Shareholders' equity
attributable to common shares(before adjusting national
specific regulatory adjustments(earnings to be distributed))

3,392,708
4,421,438
7,124-

3,393,235
4,173,882
6,414
-

-

-

As of March
31, 2021

(Millions of yen)
As of March
31, 2021

As of March
31, 2020

2-a Intangible fixed assets
2-b Securitiesof which: share of goodwill ofcompanies accounted for using theequity method¥620,224
43,697,262¥636,139
34,907,234

9,635

6,971

Income taxes related to above¥(170,006)¥(173,648)(2) Composition of Capital

Goodwill (net of related tax liability,
including those equivalent)
Other intangibles other than goodwill
9 and mortgage servicing rights (net of
related tax liability)
Mortgage servicing rights (net of
related tax liability)
Amount exceeding the 10%
20
threshold on specified items
Amount exceeding the 15%
24
threshold on specified items
Mortgage servicing rights that are74
below the thresholds for deduction(before risk weighting)
8(Millions of yen)
As of March
31, 2021

As of March
31, 2020¥65,884¥68,248

393,969401,215

-

-

-

-

-

-

-

-

3. Net defined Benefit Asset(1) Consolidated Balance Sheet
Ref.

Consolidated balance sheet items

3 Net defined benefit asset
Income taxes related to above

As of March
31, 2020¥1,109,107¥846,782¥(339,312)¥(258,870)

Remarks(Millions of yen)

Composition of capital disclosure

As of March
31, 2021

As of March
31, 2020

Net defined benefit asset¥769,795¥587,912

Remarks

Appendix

15

Software and other(Millions of yen)
As of March
31, 2021(2) Composition of CapitalBasel III
template

Remarks

Message from theGroup CFO

Composition of capital disclosure

Share of goodwill of companies
accounted for using the equity
methodOur strategies forcreating value

Basel III
template

Remarks

Foundations for our
corporate value

Consolidated balance sheet items

Data section

Ref.

About Mizuho

2. Intangible Fixed Assets(1) Consolidated Balance Sheet

Message from theGroup CEO

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

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Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

4. Deferred Tax Assets(1) Consolidated Balance Sheet(Millions of yen)
As of March
31, 2021

As of March
31, 2020

Ref.

Consolidated balance sheet items

4-a
4-b

Deferred tax assets
Deferred tax liabilities
Deferred tax liabilities for revaluation
reserve for land

¥31,402
215,557¥32,493
53,15061,91562,695

Tax effects on intangible fixed assets
Tax effects on net defined benefit asset¥170,006
339,312¥173,648
258,8704-c(2) Composition of CapitalBasel III
template

10

21
25

75

Composition of capital disclosure(Millions of yen)
As of March
31, 2021

As of March
31, 2020

Deferred tax assets that rely on future
profitability excluding those arisingfrom temporary differences (net of
related tax liability)¥12,348¥15,053

Deferred tax assets that rely on future
profitability arising from temporary
differences (net of related tax liability)

265,832

351,227

-

-

-

-

265,832

351,227

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)

271

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.

Message from theGroup CEO

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

5. Deferred Gains or Losses on Derivatives under Hedge Accounting(Millions of yen)
(1) Consolidated Balance Sheet

Deferred gains or losses on hedges

As of March
31, 2021

As of March
31, 2020¥31,618¥72,081(2) Composition of CapitalBasel III
template

11

Composition of capital disclosure

Deferred gains or losses onderivatives under hedge accounting

Remarks(Millions of yen)
As of March
31, 2021¥30,475

As of March
31, 2020

Remarks¥124,838

Excluding those items whose
valuation differences arisingfrom hedged items arerecognized as "Total
accumulated othercomprehensive income"About Mizuho

5Consolidated balance sheet items

Message from theGroup CFO

Ref.

6. Items Associated with Investments in the Capital of Financial Institutions(Millions of yen)
(1) Consolidated Balance Sheet¥12,589,294¥13,248,734

6-b Securities
6-c Loans and bills discounted
Derivatives other than for trading
6-dassets6-e Other assets

43,697,262
83,704,675

34,907,234
83,468,185

1,719,349

1,944,060

6,174,020

5,206,121

6-fTrading liabilities

8,115,377

9,604,890

6-gDerivatives other than for trading
liabilities

1,739,671

1,619,151

Trading assets

Including trading accountsecurities and derivatives for
trading assets
Including subordinated loans

Including money invested
Including trading accountsecurities soldAppendix

Data section

6-aRemarks

Our strategies forcreating value

As of March
31, 2020

Consolidated balance sheet items

Foundations for our
corporate value

As of March
31, 2021

Ref.

272

Reconciliation of regulatory capital to consolidated balance sheet

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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 thecapital of banking, financial andinsurance 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 thatare outside 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
designated for the 5% threshold butthat no longer 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 capitalof banking, 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)

273

Reconciliation of regulatory capital to consolidated balance sheet(Millions of yen)
As of March
31, 2021

As of March
31, 2020¥7,340
3,552
2,400
1,388

¥4,855
2,185
1,700
970

-

-

-

-

-

-

460,709456,706

-

-

-

-

334

1,349

460,375

455,356

331,209

312,020

-

-

-

-

36,07843,950--295,131

268,070

Remarks

7. Non-Controlling Interests(1) Consolidated Balance Sheet
Consolidated balance sheet items

As of March
31, 2020

Non-Controlling interests¥105,797¥109,662(2) Composition of Capital¥7,361¥7,549After reflecting amounts eligible
for inclusion (non-controllinginterest after adjustments)--

After reflecting amounts eligible
for inclusion (non-controllinginterest after adjustments)

17,43920,277

99,266130,184

5,173

5,955

8. Other Capital Instruments(1) Consolidated Balance Sheet
Ref.

Consolidated balance sheet items

8-a
8-b

Borrowed money
Bonds and notes
Total

32

As of March
31, 2020¥7,441,822
10,321,672¥17,763,494¥5,209,947
8,906,432¥14,116,380

Directly issued qualifying additional
Tier 1 instruments plus related stock
surplus of which: classified asliabilities under applicable accounting
standards
Directly issued qualifying Tier 2
instruments plus related stock surplusof which: classified as liabilities underapplicable accounting standards

Remarks(Millions of yen)
As of March
31, 2021

As of March
31, 2020¥1,873,000¥1,805,000

1,406,564

1,215,858

Remarks

Appendix

46

Composition of capital disclosure

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)
As of March
31, 2021(2) Composition of CapitalBasel III
template

Remarks

About Mizuho

Common share capital issued by
5 subsidiaries and held by third parties(amount allowed in group CET1)
Qualifying additional Tier 1
instruments plus related stock surplus
30-31ab-32
issued by special purpose vehicles
and other equivalent entities
Additional Tier 1 instruments issued by
34-35 subsidiaries and held by third parties(amount allowed in group AT1)
Tier 2 instruments plus related stock
46 surplus issued by special purpose
vehicles and other equivalent entities
Tier 2 instruments issued by
48-49 subsidiaries and held by third parties(amount allowed in group Tier 2)

As of March
31, 2020

Message from theGroup CFO

Composition of capital disclosure(Millions of yen)
As of March
31, 2021

Our strategies forcreating value

Basel III
template

Remarks

Foundations for our
corporate value

7(Millions of yen)
As of March
31, 2021

Data section

Ref.

Message from theGroup CEO

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

274

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2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

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 81 to 86 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)aBasel III
Template
No.

Overview of RWAcdcapital requirements

As of March
31, 2021¥41,573,999

As of March
31, 2020¥38,378,848

As of March
31, 2021¥3,508,692

As of March
31, 2020¥3,237,808

1,871,761
38,077,677
1,624,560

1,943,907
34,895,880
1,539,061

149,740
3,228,987
129,964

155,5122,959,170
123,124

1
2
3

Credit risk (excluding counterparty credit risk)of which: standardized approach (SA)of which: internal rating-based (IRB) approachof which: significant investmentsof which: estimated residual value of lease transactions
others4
54,459,369

4,515,574

363,487

367,950

6Counterparty credit risk (CCR)
of which: SA-CCR
of which: current exposure methodof which: expected positive exposure (EPE) methodof which: credit valuation adjustment (CVA) riskof which: central counterparty-related
Others448,051
1,078,444
1,982,240
166,104
784,529

165,699
1,216,072
2,137,870
163,062
832,869

37,51090,701
158,579
13,28863,407

13,700102,437
171,029
13,04467,737

7

Equity positions in banking book under market-based approach

3,427,692

2,327,117

290,668

197,3398910Equity 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

6,166,277
609,005
156,266

5,104,213
588,916
93,039521,846
51,643
12,519431,577
49,9407,443

11

Settlement risk

12
13
14
15

Securitization exposures in banking bookof 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

2,730
1,150,473

17,3801,050,808

230
92,037

1,462
84,064

921,663
228,207
249
353

799,189242,645
8,973

73,733
18,25619
28

63,935
19,411
717

16
17
18

Market riskof which: standardized approach (SA)of which: internal model approaches (IMA)

2,328,664

2,476,959

186,293

198,156

1,160,121
1,168,542

1,063,932
1,413,026

92,80993,483

85,114
113,042

19
20
21
22

Operational riskof which: basic indicator approachof which: standardized approachof which: advanced measurement approach

3,192,568

3,355,977

255,405

268,478

701,380
2,491,188

664,565
2,691,412

56,110199,295

53,165215,31223

Exposures of specified items not subject to regulatory adjustments
Amounts included in RWA subject to phase-out arrangements
Floor adjustment
Total (after applying the scaling factor)

1,402,410¥67,481,983

1,548,246¥62,141,217

115,734¥5,398,558

127,076¥4,971,297

24
25

275

b
RWA

RWA
¥47,821.1
34,213.2

Risk
Weight(%)
21.23
16.41

EAD
¥198,839.2
182,320.4

RWA¥43,413.0
31,777.0

Risk
Weight(%)
21.83
17.42

100,828.4

31,248.2

30.99

93,791.9

29,262.6

31.19

75,866.4
22,283.6
1,437.6
1,240.7
99,303.2
99,100.5
196.6
6.0
0.0
7,917.9
7,510.0
383.2
6.2
18.4
317.9
10,155.0
8,079.9573.1
1,501.9
4,700.5
3,542.0
1,158.4
2,002.2
4,968.5
2,640.2
5,177.2／／¥238,011.4

15,548.7
13,229.7
1,979.7
490.0
872.0
743.3
121.1
7.6
0.0
1,760.5
1,515.1
221.9
17.4
6.0
332.3
3,092.5
2,104.3465.4
522.6
8,650.6
4,911.0
3,739.6
1,864.8
3,515.6
7,325.1
1,150.4
1,982.2
166.1¥61,960.7

20.49
59.36
137.70
39.49
0.87
0.75
61.60
126.75
36.54
22.23
20.17
57.92
277.4633.12
104.52
30.45
26.04
81.21
34.80
184.03138.64322.8093.13
70.75
277.43
22.22
／
／
25.13

70,774.5
21,307.8
1,004.3
705.2
81,438.2
81,340.6
95.8
1.7
0.0
6,852.8
6,327.0
524.7
0.0
0.9
237.4
10,528.8
8,403.2
618.7
1,506.7
3,599.3
2,809.8
789.4
2,390.5
5,226.3
2,647.1
4,669.0／／¥211,381.7

14,921.1
12,738.3
1,326.2
276.9
792.7
722.0
67.8
2.8
0.0
1,480.7
1,136.0
344.2
0.1
0.3
240.8
3,324.1
2,241.0
496.6
586.5
6,270.8
3,707.2
2,563.6
2,040.8
3,431.4
6,112.0
1,050.8
2,137.8
163.0¥56,308.2

21.08
59.78
132.05
39.27
0.97
0.88
70.76
165.14
32.86
21.6
17.95
65.61
132.32
32.85
101.4
31.57
26.66
80.26
38.92
174.22131.93324.7385.37
65.65
230.89
22.5
／
／
25.54

Appendix

Data section

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.

About Mizuho

EAD¥225,225.3
208,367.5

Message from theGroup CFO

Internal ratings-based approach
Corporate, etc.
Corporate (except specialized
lending)
Ratings A1-B2
Ratings C1-D3
Ratings E1-E2
Ratings E2R-H1
Sovereign
Ratings A1-B2
Ratings C1-D3
Ratings E1-E2
Ratings E2R-H1Bank
Ratings A1-B2
Ratings C1-D3
Ratings E1-E2
Ratings E2R-H1
Specialized lending
RetailResidential mortgage
Qualifying revolving loan
Other retail
Equities
PD/LGD approach
Market-based approach
OthersStandardized approach
Equity investments in funds
Securitization exposures
CVA risk
Central counterparty-related
Total

As of March 31, 2020

Our strategies forcreating value(Billions of yen)
As of March 31, 2021

Foundations for our
corporate value(B) Credit Risk Weighted Assets by Asset Class and Ratings Segment

Message from theGroup CEO

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

276

RWA by asset class and ratings segment

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

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, 2021def
Carrying values of items:cCarrying
Carrying
values as
valuesreported inunderpublished scope offinancial regulatory
statements consolidation

Subject tocreditrisk
framework¥47,981,981
589,776
11,623,654¥47,981,981
589,776-¥11,623,654

2,707,711-

3,208,004
12,589,294
582,368
43,697,262
83,704,675
2,084,756

2,285,493
582,368
42,337,957
82,187,404
2,084,756

1,719,349

gSubject tothe market
risk
framework

Not subject tocapitalrequirements
or subject todeductionfrom capital

¥-

¥-

¥-

2,707,711---

6,167,946
959-

886,008
1,313,592
1,516,310-

12,589,294-

36,50245,713--

1,719,349---

6,174,020
1,135,449
620,224
1,109,107
31,402

1,644,268
1,135,449
170,006
339,312
19,053

4,262,689
-

3,048
-

-

264,013450,218
769,795
12,3486,602,744

6,599,620

785

2,339

-

-

(575,572)(575,565)

-

-

-

(7)

Subject tocounterparty Subject to thecredit risk securitization
framework
framework

(0)

(0)

-

-

-

-

¥225,586,211¥187,381,881¥26,483,097¥3,721,298¥12,589,294¥1,578,585

277

Linkages between Financial Statements and Regulatory Exposures

Carryingvalues as
Carrying
reported 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¥133,312,406
17,192,572
1,312,790

¥-

¥-

¥-

¥- ¥133,312,406
17,192,572
1,312,790

18,607,255-

18,607,255

-

-

-

958,148-

958,148---

2,105,067
8,115,377
7,441,822
532,042456,045
10,321,672
1,160,608-

5,712,957--

8,115,377-

2,105,067
7,441,822
532,042456,045
10,321,672
1,160,608

1,739,671-

1,739,671---

5,862,013
104,131
2,935
71,049-266,287---

5,595,725
104,131
2,935
71,049

683

-

-

-

-

683

1,074

-

-

-

-

1,074

6,762
22,099

3,092
-

-

-

-

3,669
22,09914,419----14,4193,135
215,557

-

-

-

-

3,135
215,557

61,915----61,915

6,602,744¥216,224,003¥3,092¥27,284,320¥-

6,602,744¥8,115,377 ¥186,534,170

Appendix

Data section

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.

Message from theGroup CFOb

Our strategies forcreating valueaAbout Mizuho(Millions of yen)

As of March 31, 2021def
Carrying values of items:

Foundations for our
corporate valueLI1-(Continued)

Message from theGroup CEO

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

278

Linkages between Financial Statements and Regulatory Exposures2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

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
Total assetsb

As of March 31, 2020def
Carrying values of items:cCarrying
Carrying
values as
valuesreported inunderpublished scope offinancial regulatory
statements consolidation

Subject tocreditrisk
framework¥41,069,745
584,686
18,581,488¥41,069,745
584,686-¥18,581,488

2,243,161-

2,688,273
13,248,734
411,847
34,907,234
83,468,185
2,044,415

2,014,799
411,847
33,530,914
81,703,282
2,044,415

1,944,060gSubject tothe market
risk
framework

Not subject tocapitalrequirements
or subject todeductionfrom capital

¥-

¥-

¥-

2,243,161---

7,871,551
1,097-

636,282
1,325,398
1,763,806-

13,248,734-

37,19150,921--

1,944,060---

5,206,121
1,103,622
636,139
846,782
32,493

1,406,740
1,103,622
173,648
258,870
17,4402,309,333
-

6,277
-

-

1,483,770
462,491
587,912
15,053

6,066,527

6,064,816

-

1,711

-

-

(424,446)¥214,659,077(424,435)¥169,960,395¥32,950,693¥3,733,474¥13,248,734(10)¥2,637,330

279

Linkages between Financial Statements and Regulatory Exposures

Subject tocounterparty Subject to thecredit risk securitization
framework
framework

Carryingvalues as
Carrying
reported 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¥131,189,673
13,282,561
2,263,076

¥-

¥-

¥-

¥- ¥131,189,673
13,282,561
2,263,076

17,971,098-

17,971,098--

1,108,255-

1,108,255---

411,089
9,604,890
5,209,947
509,405
373,658
8,906,432
1,055,510-

7,391,816--

9,604,890-

411,089
5,209,947
509,405
373,658
8,906,432
1,055,510

1,619,151-

1,619,151---

6,111,195
75,1752,559
62,113-

165,027---

5,946,167
75,1752,559
62,113

944

-

-

-

-

944

-

637

-

-

-

-

637

6,443
27,851

1,770
-

-

-

-

4,672
27,851

18,672----

18,672

2,509
53,150

-

-

-

-

2,509
53,15062,695----62,695

6,066,527¥205,995,229¥1,770¥28,255,349¥-

6,066,527¥9,604,890 ¥175,525,035

Appendix

Data section

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.

Message from theGroup CFOb

Our strategies forcreating valueaAbout Mizuho(Millions of yen)

As of March 31, 2020def
Carrying values of items:

Foundations for our
corporate valueLI1-(Continued)

Message from theGroup CEO

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

280

Linkages between Financial Statements and Regulatory Exposures2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

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

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, 2021bcde
Items subject to:Counterparty
credit risk Securitization Market risk
Credit risk
framework
framework
framework
framework¥224,007,626¥187,381,882¥26,483,097¥3,721,298¥12,589,294

29,689,833

3,092

27,284,320-

8,115,377

194,317,793
25,177,439

187,378,790
23,721,495(801,223)-

3,721,298
1,455,943

4,473,916-

683,736

683,736---

2,116,257
22,836,729(320,910)¥244,811,044(775,897)¥211,008,124

2,116,257
22,836,729¥24,151,762¥5,177,242¥4,473,916

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, 2020bcde
Items subject to:Counterparty
credit risk Securitization Market risk
Credit risk
framework
framework
framework
framework¥212,021,746¥169,960,395¥32,950,693¥3,733,474¥13,248,734

30,470,193

1,770

28,255,349-

9,604,890

181,551,552
18,475,125

169,958,625
17,539,554

4,695,343-

3,733,474
935,570

3,643,844-

509,631509,631---2,193,674
14,196,805
37,306¥216,964,093(442,430)¥187,565,380

2,193,674
14,196,805¥21,085,824¥4,669,045¥3,643,844

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.

281

Linkages between Financial Statements and Regulatory Exposures

Message from theGroup CEO

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）■ Credit Risk
(1) Summary of Risk Profile, Risk Management Policies/ Procedures and Structure
See pages 112 to 115 for a summary of our credit risk profile and credit risk management policies, etc.
(2) Summary of Provision for Loan Losses and Write-offs

About Mizuho

See page 114 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¥513,488
5,187
518,676¥81,675,117
36,349,053
52,311,881
170,336,052

20,07937,801
57,8806,582,648
34,914,384
41,497,032

44,35244,352

6,558,375
34,952,185
41,510,560¥1,301,582 ¥211,108,060¥563,028 ¥211,846,613

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, 2020abcGross carrying values of
NonDefaulted
defaulted
exposures
exposures
Reserve
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)¥730,173
9,071
8,646
747,891¥80,974,338
28,171,768
44,692,354
153,838,461¥386,006
3,273
389,280¥81,318,505
28,180,839
44,697,726
154,197,072

19,68325,42845,111

6,047,710
26,659,617
32,707,327

30,80830,8086,036,585
26,685,045
32,721,631¥793,003 ¥186,545,789¥420,088 ¥186,918,703

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

282

Credit Risk、Quantitative Disclosure on Credit Risk

Our strategies forcreating value¥80,964,842
36,336,427
52,309,757
169,611,027

Foundations for our
corporate value

8¥1,223,764
12,626
7,311
1,243,701

Data section

5
6
7

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)

Appendix

12
3
4

Net values(a+b-c)d

Message from theGroup CFO(Millions of yen)

As of March 31, 2021abcGross carrying values of
NonDefaulted
defaulted
exposures
exposures
Reserve2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

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, 2021
Loans,
commitments
and other
non-derivative
off-balancesheet
exposures Securities
Domestic¥73,833.3 ¥27,572.7
Overseas
48,628.2
12,669.2
Asia
11,620.5
2,180.7
Central and South America
3,945.5
31.4
North America
17,412.9
8,836.4
Eastern Europe
404.3
Western Europe
10,257.5
727.1
Other areas
4,987.2
893.4
Total¥122,461.6 ¥40,242.0
Standardized approach portion／／

As of March 31, 2020

Loans,
commitments
and other
non-derivative
off-balancesheet
OthersTotal
exposures Securities¥43,820.6 ¥145,226.7 ¥67,436.7 ¥18,415.0
11,402.2
72,699.8
45,712.5
12,818.0
1,832.2
15,633.6
11,547.1
2,185.8
1,654.9
5,631.9
4,026.1
69.4
6,115.1
32,364.5
16,646.2
8,935.1
11.3
415.6
406.4
1,598.1
12,582.8
8,790.0
1,170.4
190.4
6,071.0
4,296.5
457.1¥55,222.8 ¥217,926.5 ¥113,149.3 ¥31,233.0／／／
3,527.8

OthersTotal¥36,438.8 ¥122,290.6
11,083.1
69,613.8
2,308.8
16,041.8
1,324.7
5,420.3
5,700.6
31,282.0
7.5
414.0
1,491.9
11,452.4
249.3
5,003.0¥47,522.0 ¥191,904.5／
3,744.5

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, 2021
Loans,
commitments
and other
non-derivative
off-balancesheet
exposures Securities
Manufacturing¥29,349.3¥2,130.4
Construction
2,070
188.2
Real estate
12,735.4
1,095.9
Service industries
6,627.7
365.2
Wholesale and retail
11,087772
Finance and insurance
17,896.1
6,352.6
Individuals
10,746.3
Other industries
30,725.8
7,948.2
Japanese Government; Bank of Japan
1,223.6
21,389.2
Total¥122,461.6¥40,242
Standardized approach portion／／

As of March 31, 2020

Loans,
commitments
and other
non-derivative
off-balancesheet
OthersTotal
exposures Securities¥619.1 ¥32,098.9 ¥25,758.1¥1,666.1
3.1
2,261.4
1,961.4
205.9
32
13,863.4
11,204.0
986.1
721.5
7,714.5
6,032.6
390.3
642.3
12,501.4
10,350.8
720.8
11,284.9
35,533.6
17,394.2
4,918.6
7
10,753.3
11,216.9
2,295
40,96927,787.4
9,408.5
62,230.5
39,617.5
1,443.5
12,936.3¥55,222.8 ¥217,926.5 ¥113,149.3 ¥31,233.0／／／
3,527.8

OthersTotal¥496.4 ¥27,920.7
9.1
2,176.6
5.1
12,195.4
721.9
7,144.9
553.0
11,624.8
11,332.9
33,645.8
7.6
11,224.6
2,650.5
39,846.5
46,124.9
31,745.0¥47,522.0 ¥191,904.5／
3,744.5

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.

283

Quantitative Disclosure on Credit Risk

About Mizuho
Appendix

Data section

Foundations for our
corporate value

Our strategies forcreating value

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.

Message from theGroup CFO

(Billions of yen)(c) Breakdown by Residual Contractual Maturity
As of March 31, 2021
As of March 31, 2020
Loans,
Loans,
commitments
commitments
and otherand other
non-derivative
non-derivative
off-balanceoff-balancesheet
sheet
exposures Securities
OthersTotal
exposures Securities
Others
Total
Less than one year
¥27,879.9 ¥18,064.3¥7,249.4 ¥53,193.7 ¥28,526.3¥9,030.5¥6,564.8 ¥44,121.7
From one year to less than three years
42,202.6
6,569.7
28.6
48,801.0
31,566.8
5,548.0
12.0
37,126.9
From three years to less than five years
21,195.1
2,578.0
10.7
23,784.0
23,188.8
3,980.3
5.9
27,175.0
Five years or more
30,441.0
8,880.1
84.3
39,405.6
29,260.8
9,475.9
108.6
38,845.5
52,742.1
44,635.2
Other than above
742.7
4,149.7
47,849.5
606.5
3,198.1
40,830.6
Total¥122,461.6 ¥40,242.0 ¥55,222.8 ¥217,926.5 ¥113,149.3 ¥31,233.0 ¥47,522.0 ¥191,904.5
Standardized approach portion
／
／
／
／
／
／
3,527.8
3,744.5

Message from theGroup CEO

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

284

Quantitative Disclosure on Credit Risk

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

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, 2021
Exposure
Reserve
Write-offs¥1,224.1¥300.0
¥15.1
233.5
59.4
2.2
59.1
24.5
0.8
30.5
4.7
0.0
44.1
11.9
69.6
15.3
29.9
2.7
1.3
¥1,457.6¥359.5
¥17.3
13.0
5.7
0.9

(Billions of yen)

As of March 31, 2020
Exposure
Reserve
Write-offs¥652.7¥147.8
¥18.4
229.7
77.4
3.2
67.6
28.0
0.4
25.9
4.5
0.1
70.9
5.9
2.5
32.7
12.6
0.0
32.3
26.3
0.0
¥882.5¥225.3
¥21.6
6.3
1.3
0.2

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, 2021
Write-offs
Exposure
Reserve¥686.1¥201.6
¥3.1
22.0
6.4
0.3
61.8
2.4
0.0
213.7
47.8
3.4
199.2
43.0
5.5
38.7
12.4
0.0
77.6
7.9
1.9
158.1
37.6
2.9
¥1,457.6¥359.5
¥17.3
13.0
5.7
0.9

As of March 31, 2020
Exposure
Reserve
Write-offs¥214.1
¥73.1
¥2.1
24.1
7.0
0.2
58.4
4.0
0.1
114.4
39.5
2.4
191.3
46.6
11.6
26.8
4.2
74.1
9.3
2.6
178.9
41.4
2.3
¥882.5¥225.3
¥21.6
6.3
1.3
0.2

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.
.

285

Quantitative Disclosure on Credit Risk

(Billions of yen)

As of March 31, 2021
From one month to less From two months to lessthan two months
than three months
Three months or more
Less than one month¥387.6
¥42.2
¥30.3
¥16.5

Total
¥476.8

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.

(Billions of yen)

As of March 31, 2020
From one month to less From two months to lessthan two months
than three months
Three months or more
Less than one month¥364.1¥30.7¥17.4¥121.6

Total

About Mizuho(D) Exposure by Past Due Period

Message from theGroup CEO

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）¥533.9As of March 31, 2021

Exposure¥886.9Amount of exposure for which loss
reserve has increased as a result of
restructuring of lending terms¥844.2Others¥42.7

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, 2020

Exposure¥332.1

Amount of exposure for which loss
reserve has increased as a result of
restructuring of lending terms¥297.4

Others¥34.6

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.

Our strategies forcreating value(Billions of yen)Foundations for our
corporate value(E) Exposure to Obligors Claims of Whom have been Restructured for the Purpose of Corporate Restructuring or
Supporting the Customer

Message from theGroup CFO

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.

286

Quantitative Disclosure on Credit Risk

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

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, 2020

2
3
4

Breakdown of changes in loans
and debt securities during thisreporting period

56¥747,891

Defaulted

750,220

Returned to non-defaulted status

89,676

Amounts written off

49,473

Other changes(115,260)

Defaulted loans and debt securities as of March 31, 2021
(1+2-3-4+5)¥1,243,701

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, 2019

2
3
4

Breakdown of changes in loans
and debt securities during thisreporting period

6

320,167

Returned to non-defaulted status

64,729Amounts written off

28,448Other changes

5

Defaulted loans and debt securities as of March 31, 2020
(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.

287

Quantitative Disclosure on Credit Risk

¥640,879

Defaulted(119,976)¥747,891

We have adopted 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., andMizuho Capital Markets LLC., Mizuho Markets Cayman LP., and Mizuho Markets Americas LLC.
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.

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-throughapproach is applied 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 to any of those business units and asset classes that do not meet the above conditions.
(ii) Summary of Our Internal Rating System
See pages 112 to 114 for a summary of our internal rating system and rating assignment procedures.

About Mizuho(i) Summary of Internal Ratings-Based (IRB) Approach

Message from theGroup CFO

(4) Credit Risk under Internal Ratings-Based (IRB) Approach

Message from theGroup CEO

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

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.
Probability of default (likelihood of default of an obligor over a period of one year)
PD
LGD
Loss given default
EAD
Exposure at default
The definition of default conforms to the Notice issued by Japan’s Financial Services Agency.

Our strategies forcreating value

Estimation of parameters and validation(iii) Asset Class-based EAD Ratios to the Total EAD by Credit RWA Calculation Approach
As of March 31, 2021
98.53%
88.99%
4.88%
2.26%
1.45%
0.93%
1.46%
100.00%

As of March 31, 2020
98.18%
87.78%
5.70%
1.95%
1.45%
1.29%
1.81%
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.

288

Qualitative Disclosure on Credit Risk under IRB approach

Data section

We estimate PD of corporate, sovereign and bank exposures per obligor rating, and that of retail exposures per pool
allocations. In making estimations, we make conservative adjustments such as accounting for estimation error on thelong-term average of internal default records. We supplement estimations for low default portfolios with external data.
We apply the regulatory floor PD (0.03%) to A1-rated and A2-rated obligors in the measurement of credit RWA, except
for sovereign exposures. The estimated parameters in almost all the PD categories such as obligor rating or pool
allocations exceeded actual defaults in the last three years. The differences stemmed from such reasons as: actual
defaults in the last few years were lower than the long-term average of the defaults over the entire period, which was thebasis for our estimation; conservative adjustments have been made to estimated parameters.
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.

Foundations for our
corporate value

Details of Estimates:2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

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(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

b
c
d
e
f
g
h
a
Original
Offon-balance balance
EAD
sheet
sheet Average post CRM Average Number Averagegross exposures CCF
and
PD
of
LGD Average
exposure pre CCF(%)
post-CCF(%)
obligors(%)
maturity
As of March 31, 2021

Sovereign¥80,804,537¥241,909
79.05 ¥82,938,386
0.00 to <0.15
0.15 to <0.25
70,60570,1650.25 to <0.50
0.50 to <0.75
155,200
3,321
75.00
118,0250.75 to <2.50
65,259
4,437
74.99
6,394
2.50 to <10.00
312
157
10.00 to <100.00
710
0
100.00 (Default)
81,096,626
249,668
78.92 83,133,129
Sub-total
Banks
4,041,374
652,341
66.98
4,955,774
0.00 to <0.15
0.15 to <0.25
115,31445,19560.47
157,2090.25 to <0.50
0.50 to <0.75
182,541
37,04960.58
187,904
0.75 to <2.50
22,028
8,338
53.01
21,9192.50 to <10.00
10.00 to <100.00
1,004
1,004
100.00 (Default)
4,362,263
742,92566.11
5,323,812
Sub-total
Corporate (except SME and specialized lending)
44,821,030 31,001,092
74.12 68,405,226
0.00 to <0.15
0.15 to <0.25
8,264,733
3,130,169
74.64 10,104,350
0.25 to <0.50
0.50 to <0.75
4,592,776
1,467,456
74.31
5,186,712
0.75 to <2.50
2,050,541
813,95472.28
2,040,749
2.50 to <10.00
605,045
251,69473.15
617,61710.00 to <100.00
1,021,631
52,60773.88
1,023,786
100.00 (Default)
61,355,758 36,716,975
74.12 87,378,441
Sub-total
SME
311,947
71,81273.58
365,4480.00 to <0.15
0.15 to <0.25
1,403,575
65,06574.99
1,390,724
0.25 to <0.50
0.50 to <0.75
1,160,881
72,61484.62
1,172,995
0.75 to <2.50
554,747
49,342
81.09
557,839
2.50 to <10.00
198,746
4,648
72.58
185,692
10.00 to <100.00
164,807
1,027
90.64
152,183
100.00 (Default)
3,794,706
264,51178.41
3,824,884
Sub-total
Specialized Lending
3,662,782
376,86276.43
3,554,029
0.00 to <0.15
0.15 to <0.25
847,194
365,956
75.39
917,720
0.25 to <0.50
0.50 to <0.75
513,499
210,153
74.00
419,989
0.75 to <2.50
98,404
95,816
75.11
76,0912.50 to <10.00
76,587
5,826
76.68
53,23610.00 to <100.00
30,044135
100.0029,773100.00 (Default)
5,228,512
1,054,750
75.47
5,050,841
Sub-total
Equities (PD/LGD approach)
3,051,403
17,793100.003,069,196
0.00 to <0.15
0.15 to <0.25
106,398
106,398
0.25 to <0.50
0.50 to <0.75
39,891
39,8910.75 to <2.50
20,97920,9792.50 to <10.00
5,845
5,845
10.00 to <100.00
42,14542,145100.00 (Default)¥3,266,664¥17,793
100.00 ¥3,284,457
Sub-total

289

Quantitative Disclosure on Credit Risk under IRB approach

i

j

k

l

RWA

RWA
density(%)

EL

Provisions

0.00
0.27
0.96
6.07
15.12
100.00
0.00

0.2
0.0
0.0
0.0
0.0
0.0
0.2

37.90
37.71
37.85
37.88
5.19
91.43
37.90

1.5
3.2
1.0
1.0
2.0
1.0
1.5

¥564,962
35,02971,2337,660
39
0678,926

0.68
49.92
60.35
119.80
25.05
34.47
0.81

¥767
72
432
147
1
0
1,421

¥／
／
／
／
／
／
／
／
1,265

0.05
0.33
1.21
4.04
100.00
0.13

0.3
0.0
0.0
0.0
0.0
0.5

37.77
36.46
36.97
41.26
96.42
37.73

2.3
1.2
0.9
1.7
5.0
2.2

925,691
53,988
127,529
29,094313
1,136,616

18.67
34.34
67.86
132.73
31.24
21.34

929
172
834
411
943
3,291

／
／
／
／
／
／
／
／
2,930

0.06
0.37
1.18
3.88
15.12
100.00
1.53

7.5
8.3
4.3
214.7
3.5
0.6
239.3

37.91
33.59
32.18
32.23
31.06
35.90
36.86

2.3
2.4
2.7
2.5
2.3
2.6
2.3

12,969,822
4,505,944
3,645,265
2,016,740
941,499
386,806
24,466,078

18.96
44.59
70.28
98.82
152.4437.78
28.00

17,574
12,80919,74025,65429,021
336,656
441,458

／
／
／
／
／
／
／
／
393,012

0.08
0.38
1.16
3.26
15.12
100.00
5.69

0.0
6.7
5.0
79.8
1.7
1.0
94.5

35.76
24.34
21.56
21.43
18.88
37.15
24.40

2.9
3.2
3.4
3.4
2.9
2.4
3.2

79,213419,936492,286
299,543
145,644
48,6201,485,245

21.67
30.19
41.96
53.69
78.43
31.94
38.83

103
1,303
3,001
3,976
5,303
52,657
66,345

／
／
／
／
／
／
／
／
59,064

0.08
0.37
0.94
3.95
15.12
100.00
1.01

0.5
0.1
0.0
0.0
0.0
0.0
0.8

33.14
37.59
40.77
36.17
33.83
62.11
34.81

4.2
4.2
4.3
4.4
3.5
4.0
4.2

970,808604,680
430,255
99,251
93,533
13,4162,211,944

27.31
65.88
102.44130.43175.69
45.06
43.79

979
1,290
1,666
1,085
2,724
17,421
25,168

／
／
／
／
／
／
／
／
22,406

0.04
0.35
1.22
4.31
15.12
100.00
1.40

0.9
0.6
0.2
0.1
0.0
0.1
2.1

90.00
90.00
90.00
90.00
90.00
90.00
90.00

5.0
3,106,865
5.0
184,847
5.0
108,475
5.0
82,291
5.0
38,844
5.0
474,137
5.0 ¥3,995,461

101.22173.73271.92392.25664.49
1,125.00
121.64

／
／
／
／
／
／
／
／
¥／

／
／
／
／
／
／
／
／
¥／

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

Total (all portfolios) ¥173,304,630 ¥41,171,558

71.52 ¥202,716,028

0.94

4,235.3

37.89

RWA

RWA
density(%)

EL

Provisions¥287,982
141,894
84,09358,5466,993
1,396
580,906

11.34
43.93
75.70
106.36
195.82
37.68
19.14

¥584
513
512
752
204
1,560
4,128

¥／
／
／
／
／
／
／
／
3,675

-

-

-

／
／
／
／
／
／
／
／
-

169,965
60,617
26,934
19,592
14,995292,104

13.16
39.52
66.60
93.70
57.54
19.06

386
245
171
247
12,261
13,312

／
／
／
／
／
／
／
／
／

0
2
3
185,419
191,768
61,342561
439,097

6.73
13.81
23.76
58.79
86.13
177.81
99.29
76.61

0
0
0
6,069
7,615
4,811
366
18,862

／
／
／
／
／
／
／
／
16,792

99,773
159,097
337,192
558,845624,549
140,936
26,26838,592
1,985,258

5.88
12.46
19.45
31.37
43.83
157.84
182.42
58.17
24.57

410
799
1,965
3,842
5,068
2,944
2,830
25,08742,949

／
／
／
／
／
／
／
／
38,236

21,456
40,57430,38829,422289,748
28,85728,16524,174
492,788

8.58
19.04
27.38
51.64
43.67
24.03
71.73
50.99
32.82

84
203
178
237
3,399
912
2,490
20,14027,647

／
／
／
／
／
／
／
／
24,6132.0 ¥37,764,428

18.62¥644,586¥561,997

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.

290

Quantitative Disclosure on Credit Risk under IRB approach

About MizuholMessage from theGroup CFOk

Our strategies forcreating value

1
2
3
4
5
6
7
8
9

j

Foundations for our
corporate value

1
2
3
4
5
6
7
8
9

i

Data section

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
OffEADon-balance balance
post CRM
sheet
sheet Average
andAverage Number Averagegross exposures CCF
PDofLGD Average
postPD scale
exposure pre CCF
(%)
CCF
(%)
obligors(%)
maturity
As of March 31, 2021
Purchased receivables (Corporate, etc.) - Default Risk Equivalent¥2,399,964¥174,731
79.14 ¥2,538,215
0.06
0.7
38.23
1.3
0.00 to <0.15
0.15 to <0.25
272,882
64,81377.22
322,936
0.41
0.2
37.88
1.4
0.25 to <0.50
0.50 to <0.75
89,702
27,61977.40
111,080
1.21
0.0
37.88
1.9
0.75 to <2.50
41,448
17,77776.47
55,045
3.61
0.0
37.88
1.7
2.50 to <10.00
1,112
3,210
76.56
3,571
15.12
0.0
37.88
3.4
10.00 to <100.00
3,644
80
75.00
3,704
100.00
0.0
45.14
0.8
100.00 (Default)
2,808,755
288,232
78.35
3,034,554
0.34
1.0
38.18
1.4
Sub-total
Purchased receivables (Retail) - Default Risk Equivalent
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
Purchased receivables (Dilution Risk Equivalent)
1,265,764
25,247100.001,291,012
0.07
0.1
37.88
0.00 to <0.15
0.15 to <0.25
145,5817,767
100.00
153,349
0.42
0.0
37.84
0.25 to <0.50
0.50 to <0.75
40,43940,439
1.12
0.0
37.88
0.75 to <2.50
20,90820,908
3.11
0.0
37.88
2.50 to <10.00
10.00 to <100.00
26,05826,058100.000.0
51.65
100.00 (Default)
1,498,753
33,015100.001,531,768
1.88
0.1
38.11
Sub-total
Retail – qualifying revolving retail exposures (QRRE)
0
0.14
0.0
80.14
／
0.00 to <0.15／
0.15 to <0.25
19
0.36
0.3
79.31
／
0.25 to <0.50
12
0.71
0.4
80.14
／
0.50 to <0.75
203,220
834,72213.43
315,393
2.40
549.8
80.14
／
0.75 to <2.50
153,621866,552
7.96
222,639
4.26
1,988.0
80.14／
2.50 to <10.00
28,965
19,96627.71
34,498
17.40
200.4
80.14
／
10.00 to <100.00
428
1,186
11.70
565
100.001.7
72.82／
100.00 (Default)
386,235
1,722,429
10.85
573,1294.12
2,740.8
80.13／
Sub-total
Retail – Residential mortgage
1,656,690
1,694,670
0.08
199.2
29.12
／
0.00 to <0.15
1,273,842
1,275,967
0.20
133.8
30.66
／
0.15 to <0.25
1,698,370
1,733,622
0.35
201.9
32.03
／
0.25 to <0.50
1,796,443
63,06997.12
1,780,946
0.63
257.4
34.41
／
0.50 to <0.75
1,423,328262
100.001,424,693
1.05
180.4
34.25
／
0.75 to <2.50
87,5471,433
100.0089,290
9.14
12.3
36.06
／
2.50 to <10.00
13,181
1,218
100.0014,399
50.03
2.3
39.25
／
10.00 to <100.00
65,478872
100.0066,335100.005.6
42.47／
100.00 (Default)
8,014,883
66,85697.28
8,079,926
1.46
993.2
32.26
／
Sub-total
Other retail24249,812
0.07
28.4
46.49
／
0.00 to <0.15
24
213,086
0.20
7.4
45.94
／
0.15 to <0.25
110,57341
100.00110,979
0.33
3.0
48.74
／
0.25 to <0.50
59,137367
75.00
56,969
0.67
71.3
60.38
／
0.50 to <0.75
769,447
2,833
79.35
663,489
1.34
22.7
40.84
／
0.75 to <2.50
393,938
1,926
63.06
120,078
6.52
14.2
16.43
／
2.50 to <10.00
97,822
7,260
54.55
39,264
17.07
12.6
35.06
／
10.00 to <100.00
60,501
1,971
94.88
47,402100.002.2
46.56／
100.00 (Default)
1,491,470
14,40066.74
1,501,082
4.81
162.2
41.91
／
Sub-total

AppendixCR6-(Continued)

Message from theGroup CEO

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

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
Offon-balance balance
EAD
sheet
sheet Average post CRM Average Number Averagegross exposures CCF
and
PD
of
LGD Average
exposure pre CCF(%)
post-CCF(%)
obligors(%)
maturity
As of March 31, 2020

Sovereign¥66,112,950¥284,237
78.99 ¥67,508,131
0.00 to <0.15
0.15 to <0.25
2,460
2,980
0.25 to <0.50
0.50 to <0.75
131,986
4,897
75.00
87,5300.75 to <2.50
64,275
5,125
75.00
1,011
2.50 to <10.00
4,385
1,670
10.00 to <100.00
00
100.00 (Default)
66,316,058
294,260
78.85 67,601,324
Sub-total
Banks
3,973,105
698,395
69.81
4,864,573
0.00 to <0.15
0.15 to <0.25
173,975
33,42372.06
235,649
0.25 to <0.50
0.50 to <0.75
223,190
45,001
65.04
233,3510.75 to <2.50
63,182
19,94874.85
56,7842.50 to <10.00
10.00 to <100.00
991
991
100.00 (Default)
4,434,445
796,76869.76
5,391,351
Sub-total
Corporate (except SME and specialized lending)
44,317,396 24,501,726
73.90 63,304,761
0.00 to <0.15
0.15 to <0.25
7,892,615
2,151,506
73.83
9,062,547
0.25 to <0.50
0.50 to <0.75
5,063,138
1,051,317
75.99
5,676,328
0.75 to <2.50
1,969,104
338,000
69.57
1,619,745
2.50 to <10.00
491,111120,282
79.77
433,252
10.00 to <100.00
533,830
39,705
74.42
538,661
100.00 (Default)
60,267,197 28,202,538
73.95 80,635,297
Sub-total
SME
210,259
31,48575.08
233,3120.00 to <0.15
0.15 to <0.25
1,473,199
67,14574.51
1,500,923
0.25 to <0.50
0.50 to <0.75
1,248,134
39,86972.70
1,245,572
0.75 to <2.50
542,492
23,79778.15
550,519
2.50 to <10.00
182,839
1,633
79.07
175,400
10.00 to <100.00
139,341
569
78.49
131,649
100.00 (Default)
3,796,267
164,499
74.77
3,837,379
Sub-total
Specialized Lending
3,321,192
362,71376.59
3,076,754
0.00 to <0.15
0.15 to <0.25
700,504
293,804
76.59
791,4890.25 to <0.50
0.50 to <0.75
429,914169,232
75.79
348,6930.75 to <2.50
70,7095,836
90.14
48,8882.50 to <10.00
41,074
5,861
77.37
18,69710.00 to <100.00
28,492240
99.99
27,606100.00 (Default)
4,591,887
837,68876.54
4,312,130
Sub-total
Equities (PD/LGD approach)
2,396,268
2,396,268
0.00 to <0.15
0.15 to <0.25
97,112
97,1120.25 to <0.50
0.50 to <0.75
28,01328,0130.75 to <2.50
47,27247,2722.50 to <10.00
2,208
2,208
10.00 to <100.00
4,801
4,801
100.00 (Default)¥- ¥2,575,676¥2,575,676
Sub-total

291

Quantitative Disclosure on Credit Risk under IRB approach

i

j

k

l

RWA

RWA
density(%)

EL

Provisions

0.00
0.33
1.21
3.25
14.88
100.00
0.00

0.2
0.0
0.0
0.0
0.0
0.0
0.3

37.86
32.66
37.83
37.83
34.49
96.38
37.85

1.7
4.4
1.0
1.4
1.1
1.0
1.7

¥542,559
1,680
57,127
1,000
2,623
0
604,991

0.80
56.38
65.26
98.87
157.03
31.00
0.89

¥776
3
402
12
85
0
1,280

¥／
／
／
／
／
／
／
／
1,133

0.05
0.38
0.99
3.06
100.00
0.16

0.3
0.0
0.0
0.0
0.0
0.5

37.61
36.96
36.65
40.51
96.38
37.58

1.6
1.6
0.9
2.2
5.0
1.6

745,059
95,667
153,226
66,961307
1,061,223

15.31
40.59
65.66
117.92
30.99
19.68

958
295
844
705
931
3,735

／
／
／
／
／
／
／
／
3,307

0.06
0.35
1.14
3.68
14.88
100.00
0.99

7.7
8.7
4.7
247.7
3.7
0.6
273.2

37.84
33.24
32.19
31.73
29.62
40.31
36.78

2.4
2.5
2.9
2.9
2.5
2.5
2.5

12,346,249
3,991,325
4,065,920
1,628,857
638,624
201,350
22,872,327

19.50
44.04
71.62
100.56147.4037.37
28.36

15,826
10,841
20,961
19,03919,109201,042286,822

／
／
／
／
／
／
／
／
253,974

0.08
0.37
1.13
3.23
14.88
100.00
5.09

0.0
7.1
5.6
89.0
1.7
0.8
104.5

34.11
24.71
21.95
21.90
18.57
37.19
24.13

3.0
3.1
3.3
3.6
3.3
2.3
3.2

46,542456,313514,452
305,964
137,401
41,547
1,502,221

19.94
30.40
41.30
55.57
78.33
31.55
39.14

63
1,370
3,092
3,939
4,851
45,64458,962

／
／
／
／
／
／
／
／
52,209

0.08
0.37
0.92
3.61
14.88
100.00
0.94

0.5
0.1
0.0
0.0
0.0
0.0
0.7

34.35
38.30
39.15
37.31
37.83
60.41
35.68

4.3
4.2
4.0
3.8
4.2
4.3
4.2

867,321528,996328,763
61,26437,678
14,698
1,838,722

28.18
66.83
94.28
125.31201.52
53.24
42.64

855
1,132
1,255
661
1,053
15,501
20,460

／
／
／
／
／
／
／
／
18,116

0.04
0.33
1.16
5.68
14.88
100.00
0.37

1.0
0.6
0.2
0.0
0.0
0.1
2.1

90.00
90.00
90.00
90.00
90.00
90.00
90.00

5.0
2,405,221
5.0
164,235
5.0
74,961
5.0
205,930
5.0
14,294
5.0
54,016
5.0 ¥2,918,659

100.37169.11
267.58435.62647.35
1,125.00
113.31

／
／
／
／
／
／
／
／
¥／

／
／
／
／
／
／
／
／
¥／

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.

292

Quantitative Disclosure on Credit Risk under IRB approach

About Mizuho
Message from theGroup CFO
Our strategies forcreating value
Foundations for our
corporate value
Data section(Millions of yen, %, number in the thousands, year)

a
b
c
d
e
f
g
h
i
j
k
l
Original
OffEADon-balance balance
post CRM
RWA
sheet
sheet Average
andAverage Number Averagedensitygross exposures CCF
PDofLGD Average
postProvisions
PD scale
exposure pre CCF
(%)
(%)
EL
CCF
(%)
obligors(%)
maturity RWA
As of March 31, 2020
Purchased receivables (Corporate, etc.) - Default Risk Equivalent¥2,180,942¥243,041
77.54 ¥2,369,298
0.06
0.7
38.12
1.4
¥299,332
12.63
¥581
¥／
1 0.00 to <0.15／
2 0.15 to <0.25
187,781
25,22380.65
208,126
0.32
0.2
37.83
1.9
87,92342.24
258／
3 0.25 to <0.50／
4 0.50 to <0.75
61,612
3,297
85.45
64,430
1.20
0.0
37.83
2.6
52,91782.13
294／
5 0.75 to <2.50
23,611
10,83886.30
32,966
3.23
0.0
37.83
1.8
33,954102.99403／
6 2.50 to <10.00
753
753
14.88
0.0
37.83
0.1
1,237
164.3042／
7 10.00 to <100.00
917
917
100.00
0.0
45.30
0.9
474
51.66
377
／
8 100.00 (Default)
2,455,620
282,399
78.25
2,676,492
0.19
1.0
38.09
1.5
475,839
17.77
1,959
1,734
9 Sub-total
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)
1,100,298
36,485100.001,136,783
0.06
0.1
37.83
136,42212.00
295／
1 0.00 to <0.15／
2 0.15 to <0.25
89,397
11,380100.00100,777
0.32
0.0
37.67
34,19933.93
124／
3 0.25 to <0.50／
4 0.50 to <0.75
42,22942,229
1.52
0.0
37.83
32,24276.35
243／
5 0.75 to <2.50
42,26442,264
3.24
0.0
37.83
39,99894.63
519／
6 2.50 to <10.00
843
843
14.88
0.0
37.83
1,451
171.9847／
7 10.00 to <100.00
26,636
26,636100.000.0
51.23
15,21857.13
12,429／8 100.00 (Default)
1,301,669
47,865100.001,349,534
2.21
0.1
38.08
259,532
19.23
13,659／9 Sub-total
Retail – qualifying revolving retail exposures (QRRE)／／
1 0.00 to <0.15
2
0.15
0.0
72.62
／
0
6.42
0
／
2 0.15 to <0.25
30
0.33
0.7
79.32
／
3
12.90
0
／
3 0.25 to <0.50
27
0.73
1.6
79.32
／
6
23.94
0
／
4 0.50 to <0.75
227,008
842,372
13.74
342,771
2.38
571.9
79.31
／
198,228
57.83
6,472
／
5 0.75 to <2.50
167,858
875,085
7.89
236,8444.24
2,044.5
79.32／
201,203
84.95
7,976
／
6 2.50 to <10.00
33,264
17,65329.19
38,417
18.69
207.4
79.32
／
68,507178.32
5,696／
7 10.00 to <100.00
507
1,239
10.86
639
100.00
1.9
72.11
／
572
89.50
415
／
8 100.00 (Default)
428,639
1,736,351
10.94
618,733
4.20
2,828.2
79.31／
468,52275.72
20,561
18,2069 Sub-total
Retail – Residential mortgage
1,802,107
1,837,359
0.08
217.3
28.77
／
107,5285.85
443／
1 0.00 to <0.15
1,069,410
1,071,224
0.20
100.6
31.92
／
138,852
12.96
696／
2 0.15 to <0.25
1,843,518
1,900,321
0.34
217.0
32.11
／
360,340
18.96
2,077
／
3 0.25 to <0.50
1,968,725
76,43996.76
1,947,361
0.63
278.1
34.38
／
611,736
31.41
4,210
／
4 0.50 to <0.75
1,458,221415
100.001,459,858
1.07
183.3
34.82
／
657,889
45.06
5,371
／
5 0.75 to <2.50
100,8612,131
100.00103,246
9.29
14.3
36.29
／
165,152
159.953,483／
6 2.50 to <10.00
20,2481,560
100.0021,814
50.21
3.3
39.32
／
39,824182.554,305／
7 10.00 to <100.00
60,942
1,178
100.0062,104100.005.0
44.12／
32,82952.86
24,779／8 100.00 (Default)
8,324,037
81,72496.97
8,403,291
1.43
1,019.2
32.51／
2,114,155
25.15
45,36840,1739 Sub-total
Other retail19
231,398
0.06
32.9
47.27
／
17,7187.65
69／
1 0.00 to <0.15
13
63,248
0.17
3.5
46.22
／
10,94517.30
52／
2 0.15 to <0.25
114,025
104
90.38
114,254
0.34
3.2
48.19
／
31,63427.68
188／
3 0.25 to <0.50
19,38984
75.00
19,518
0.65
0.9
18.72
／
3,047
15.61
24
／
4 0.50 to <0.75
890,961
3,053
77.88
838,185
1.34
102.7
44.61
／
396,337
47.28
4,595
／
5 0.75 to <2.50
329,655
1,551
64.73
147,700
6.50
16.0
18.32
／
39,839
26.97
1,331
／
6 2.50 to <10.00
77,356
7,855
53.54
40,363
17.97
14.0
34.30
／
28,552
70.73
2,696
／
7 10.00 to <100.00
64,1902,178
96.24
50,786100.002.6
47.82／
24,69248.61
22,313／8 100.00 (Default)
1,495,612
14,82866.38
1,505,455
5.29
176.0
42.27
／
552,767
36.71
31,271
27,6909 Sub-total
70.72 ¥178,906,668
0.73
4,406.4
37.7
2.2 ¥34,668,964
19.37 ¥484,080 ¥416,548
Total (all portfolios) ¥155,987,112 ¥32,458,925

AppendixCR6-(Continued)

Message from theGroup CEO

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

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, 2019

Breakdown of changes during thisreporting period¥38,783.5
1,240.6
106.2(433.4)(86.1)¥39,610.9

Asset size
Portfolio quality
Model updates
Methodology and policy
Acquisitions and disposals
Foreign currency fluctuations
Other

RWA as of March 31, 2020

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, 2020

Breakdown of changes during thisreporting period

RWA as of March 31, 2021

Asset size
Portfolio quality
Model updates
Methodology and policy
Acquisitions and disposals
Foreign currency fluctuations
Other¥39,610.9
1,452.0
2,016.1
577.6
105.7¥43,762.5

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.

293

Quantitative Disclosure on Credit Risk under IRB approachcExternal rating equivalent

Portfolio

PD
Range
(%)

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
Retail –0.10 to<0.20
qualifying
torevolving retail 0.20
<1.00
exposures
1.00 to<5.00(QRRE)
5.00 to<100.00
0.00 to<0.10
0.10 to<0.20
Retail –to
Residential 0.20
<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<100.00fghi
Number of
AverageArithmeticof which:
Weighted
obligors
historical
average
Defaulted
newaverageannual
PD byobligors defaulted
As of
As of
PD
default
obligors
March
March in the year obligors
(%)
rate
(%)
in the year
31, 2018 31, 2019(%)

Moody’
Fitch
s

R&I

JCR

AAA～A-

Aaa～A3 AAA～A-

AAA～A-

AAA～A-

0.05

0.06

5,492

5,354

1

-

0.01

BBB+～BBB-

Baa1～Baa3

BBB+～BBB-

BBB+～BBB-

0.12

0.12

2,760

2,865

4

1

0.06

S&P

BBB+～BBB-

BB+～BB- Ba1～Ba3 BB+～BB- BB+～BB- BB+～BB-

0.47

0.47

21,593

21,163

126

2

0.32

B+～B-

2.02

3.04

8,399

8,026

233

4

1.72

12.35

14.17

1,948

2,155

173

7

7.72

-

-

-

-

-

-

-

-

-

-

-

-

-

-

B1～B3

B+～B-

B+～B-

B+～B-

CCC+～CCC- Caa1～Caa3 CCC+～CCC- CCC+～CCC- CCC+～CCC-

-

-

-

-

-

-

-

2.78

2.96

310,140

290,058

5,438

512

1.88

13.79

10.00

149,075

142,796

9,601

431

8.66

0.06

0.06

89,687

97,863

39

3

0.03

0.15

0.14

65,89762,674

47

-

0.05

0.48

0.49

382,579

371,520

1,187

4

0.25

1.22

1.19

82,274

77,180

465

-

0.48

16.18

16.83

10,757

8,503

1,091

-

10.51

-

-

-

-

-

-

-

-

-

-

-

-

-

-

0.80

0.61

306,402

301,470

872

11

0.30

1.49

1.47

50,604

49,167

543

10

0.67

8.46

17.92

24,91824,293

1,341

1

4.70

Appendix

Data section

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 areincorporated 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, 2019 to September 30, 2020.

About MizuhobMessage from theGroup CFOa

Our strategies forcreating value(%, the number of data)

As of March 31, 2021deFoundations for our
corporate value(C) CR9: IRB - Backtesting of Probability of Default (PD) per Portfolio

Message from theGroup CEO

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

294

Quantitative Disclosure on Credit Risk under IRB approach2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(%, the number of data)ab

Portfolio

PD
Range
(%)

As of March 31, 2020decExternal 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
Retail –0.10 to<0.20
qualifying
torevolving retail 0.20
<1.00
exposures
1.00 to<5.00(QRRE)
5.00 to<100.00
0.00 to<0.10
0.10 to<0.20
Retail –to
Residential 0.20
<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
historical
average
Defaulted
newaverageannual
PD byobligors defaulted
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-

0.04

0.05

2,428

2,448

1

-

0.00

BBB+～BBB-

Baa1～Baa3

BBB+～BBB-

BBB+～BBB-

0.12

0.12

5,415

5,793

4

-

0.05

BBB+～BBB-

BB+～BB- Ba1～Ba3 BB+～BB- BB+～BB- BB+～BB-

0.48

0.50

21,637

21,594

48

1

0.24

B+～B-

B+～B-

2.04

2.53

8,470

8,398

146

2

1.42

CCC+～CCC- Caa1～Caa3 CCC+～CCC- CCC+～CCC- CCC～C

12.53

13.08

1,949

1,949

139

3

7.47

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

B1～B3

B+～B-

B+～B-

2.75

2.94

331,852

310,140

6,405

475

1.89

13.19

9.12

146,854

149,075

11,657

743

9.13

0.06

0.06

87,23077,325

33

-

0.02

0.14

0.14

78,90078,259

46

1

0.06

0.50

0.51

385,619382,771

872

2

0.24

1.25

1.22

82,71882,274

338

-

0.47

20.37

21.31

9,024

10,757

1,050

-

10.70

-

-

-

-

-

-

-

-

-

-

-

-

-

-

0.79

0.67

400,105

306,402

1,268

24

0.31

2.72

3.14

80,66550,604

855

10

0.53

13.04

22.53

34,136

24,918

1,850

2

4.34

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 areincorporated 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. : 80%, QRRE: 1%,
Residential mortgage : 6%, Other retail : 2%
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, 2018 to September 30, 2019.

295

Quantitative Disclosure on Credit Risk under IRB approach

Satisfactory
Weak
Default
Total
Regulatory
categories
StrongGood

Categories
Exchangetraded
equityexposures
Privateequityexposures
Other
equityexposures
Total
Equity exposures towhich a risk weight of
100% is applied¥25,017¥12,508

¥-

-

-

-

-

70%

-

-

-

-

-

-

-

-

90%

-

2,175

-

-

2,175

1,957

17

8,415
6,612
42,221- 115%
20,436 250%
20,436-

HVCRE

23,886
8,883
59,964--23,886
8,883
59,96459,717
74,183

1,910
4,441
6,370

164,698

53,929

95%

2,830

-

95%

6,147

7,170 120%

1,377
- 140%- 250%
211,51261,412Equity exposures under the market-based approach etc.
Equity exposures under the market-based approach
OnOffbalance balance
RW
sheet
sheet
amount amount
756,644286,587 300%

72,163

1,690 400%

-

-

-

828,808 288,277
Equity exposures to which a risk weight of 100% is applied

4,268- 100%

ExposureamountExpected
lossesRWA

36,69325,685

146

205,188

194,929

820

2,830

2,688

11

11,527

13,833

46

1,377
257,617

1,929
239,064

38
1,063

ExposureamountRWA

1,043,232 3,129,698

73,431

293,725--

1,116,664 3,423,423
4,268

About Mizuho

Expected
losses-

OnOffbalance balance
RW
sheet
sheet
amount amountLess than 2.5 years
36,458313 70%Satisfactory
Weak
Default
Total

RWA

2,174

Remainingmaturity

Equal to or morethan 2.5 years
Less than 2.5 years
Equal to or morethan 2.5 yearslFoundations for our
corporate value

Good

Total

k

Data section

than 2.5 years
Less than 2.5 years
Equal to or morethan 2.5 yearsjMessage from theGroup CFO(Millions of yen, %)As of March 31, 2021
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¥25,017¥- 50%¥- ¥25,017¥¥Equal to or more
Strong- 70%-

Our strategies forcreating value(D) CR10: IRB -Specialized Lending under the Slotting Criteria Approach and Equity Exposures under the Marketbased Approach etc.

Message from theGroup CEO

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

4,268

Appendix

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.

296

Quantitative Disclosure on Credit Risk under IRB approach2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(Millions of yen, %)As of March 31, 2020
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%¥¥¥¥Equal to or more
Strong25,007- 70%
25,007than 2.5 years
Less than 2.5 years
Equal to or morethan 2.5 years

Good
Satisfactory
Weak
Default
Total
Regulatory
categories
Strong---Satisfactory
Weak
Default
Total

Categories
Exchangetraded
equityexposures
Privateequityexposures
Other
equityexposures
Total
Equity exposures towhich a risk weight of
100% is appliedl

RWA

Expected
losses¥-¥-¥-

25,007

17,505

100

-

-

-

70%

2,634

-

90%

-

2,635

-

-

2,635

2,371

21

3,838
8,657
6,525
46,662

23,370 115%
- 250%
23,370-HVCRE

21,3698,756
9,312
67,081--

21,3698,756
9,312
67,081

24,57521,89066,343

598
700
4,656
6,076

OnOffbalance balance
RW
sheet
sheet
amount amountLess than 2.5 years
16,351
- 70%

-

Total

k

-

Remainingmaturity

Equal to or morethan 2.5 years
Less than 2.5 years
Equal to or morethan 2.5 years

Good

-

j

ExposureamountExpected
lossesRWA

16,35811,45065

113,965

31,991

95%

137,982

131,083

551

3,120

-

95%

3,122

2,965

12

6,369

8,250 120%

12,56015,07250

170,023

160,572

680

ExposureamountRWA- 140%- 250%
139,80740,241Equity exposures under the market-based approach etc.
Equity exposures under the market-based approach
OnOffbalance balance
RW
sheet
sheet
amount amount
511,441

170,264 300%

68,124

1,661 400%

-

-

-

579,566 171,925
Equity exposures to which a risk weight of 100% is applied

4,517- 100%

681,705 2,045,116

69,370277,483--

751,076 2,322,599
4,517

4,517

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.

297

Quantitative Disclosure on Credit Risk under IRB approach(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.
(ii) Quantitative disclosure on credit risk under standardized approach(A) CR5: Standardized Approach - Exposures by Asset Classes and Risk Weights(Millions of yen)

7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22

¥97
392,166
64,431¥-¥72,997¥-¥109,379¥-¥15,163

¥0

¥-

¥-

¥97
392,166
261,973

816
-

-

465

-

2

-

0

-

-

-

816
467

-

4

-

-

-

-

-

-

-

-

4

-

6,214
-

346,126-

33,056-

63,971

-

-

-

6,214
443,155

-

-

-

-

225

- 1,636,755
12

26

-

- 1,636,755
264

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

¥- ¥1,715,903

¥26

¥-

¥- ¥2,741,915¥457,513¥6,218 ¥419,589¥- ¥142,664

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.

Message from theGroup CFO

Total

Our strategies forcreating value

4
5
6

0%

Foundations for our
corporate value

1
2
3

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

k

Data sectiona

As of March 31, 2021
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%

About Mizuho

Message from theGroup CEO

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

298

Credit Risk under Standardized Approach2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

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, 2020
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

¥80
508,644
107,321¥-¥63,522¥-¥151,255¥-¥46,736

¥1

¥-

¥-

¥80
508,644368,837

2,838
-

-

431

-

0

-

0

-

-

-

2,838
432

0
-

7

-

-

-

-

-

-

-

-

0
7

-

5,259
-

374,887-

63,908-77,204

-

-

-

5,259
516,000

-

-

-

-

232

- 1,623,973
12

28

-

- 1,623,973
272

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

¥- ¥1,747,926

¥30

¥-

¥- ¥3,026,345¥618,884¥5,267 ¥438,841¥- ¥215,395

Note: Counterparty credit risk exposures, credit risk related to securitization transactions, and fund exposures are excluded from the amount of credit risk exposures above.

299k(i) Summary of Risk Profile, Risk Management Policies/ Procedures and Structure
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.
(ii) Quantitative Disclosure on Credit Risk Mitigation Techniques
Counterparty risk exposures, securitization exposures, and regarded-method exposures are excluded from the amountof credit risk exposures below.

About Mizuho(6) Credit Risk Mitigation Techniques

Message from theGroup CEO

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

1
2
3
4
5

Loans
Debt securities
Other on balance debt assets
Total (1+2+3)
Of which defaulted

Exposures
unsecured¥65,015,186
35,863,398
52,242,536¥153,121,122
564,119

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¥65,503,018
27,701,052
44,625,456¥137,829,527
279,426

As of March 31, 2020bcde
Exposures secured Exposures secured
Exposures secured
by financial
by credit
Exposures secured
by collateralguarantees
derivatives¥15,815,487¥6,493,163¥7,043,960¥3,019479,786
303,452
81,134
72,2702,198
56,783¥16,367,544¥6,798,814¥7,181,879¥3,019254,343
135,921
43,523-

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.

Our strategies forcreating valueaFoundations for our
corporate value(Millions of yen)

As of March 31, 2021bcde
Exposures secured Exposures secured
Exposures secured
by financial
by credit
Exposures secured
by collateralguarantees
derivatives¥16,659,931¥6,795,255¥7,400,226¥5,846
485,654346,319
29,734
69,3442,350
52,901¥17,214,930¥7,143,925¥7,482,862¥5,846331,171
138,736
63,834-

Message from theGroup CFO

(A) CR3: Credit Risk Mitigation Techniques - Overview

300

Credit Risk Mitigation Techniques

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

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 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
Corporation, etc.
With guarantee of Regional Economy
Vitalization Corporation of Japan
Investments, etc.(excluding significant
investments)
Total

a
b
Exposures before CCF andCRM
On-balance
Off-balance
sheet amount sheet amount¥97¥392,166
261,973816-

As of March 31, 2021cdExposures post-CCF andCRM
On-balance
Off-balance
sheet amount sheet amount¥97¥392,166
261,973
816
-

e

f

¥84,453-

RWA
density
0.00
0.00
32.23
0.00

RWA

467

-

467

-

94

20.20

4
6,214
-

-

4
6,214
-

-

0
621
-

10.00
10.00
-

390,618

137,472

377,727

65,427

149,72533.78

1,371,666-

355,120-

1,371,228-

265,527-

1,636,701
-

99.99
-

264

-

264

-

164

62.30

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

¥2,424,289¥492,592¥2,410,960¥330,954¥1,871,761

68.26(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 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
Corporation, etc.
With guarantee of Regional Economy
Vitalization Corporation of Japan
Investments, etc.(excluding significant
investments)
Total

301

Credit Risk Mitigation TechniquesabExposures before CCF andCRM
On-balance
Off-balance
sheet amount sheet amount¥80¥508,644
368,837
2,838-

As of March 31, 2020cd
Exposures post-CCF andCRM
On-balance
Off-balance
sheet amount sheet amount¥80¥508,644
368,837
2,838
-

e

f

¥135,071-

RWA
density
0.00
0.00
36.62
0.00

RWA

432

-

432

-

87

20.14

80
7
5,259
-

-

0
7
5,259
-

-

0
525
-

0.00
10.00
10.00
-

455,861

131,306

453,575

62,425

184,13635.68

1,409,004-

270,006-

1,408,323-

215,650-

1,623,915
-

99.99
-

272

-

272

-

170

62.55

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

¥2,751,318¥401,312¥2,748,270¥278,075¥1,943,907

64.23

(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)

As of March 31, 2020
Exposure¥2,492,474
147,229
7,443¥2,647,147

Appendix

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

As of March 31, 2021
Exposure¥2,475,542
152,251
12,501¥2,640,294

About Mizuho

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, 2020ab
Pre-credit
derivatives RWA
Actual RWA¥¥517,251
517,251
1,005,223
1,005,223
24,415,292
24,414,538
2,169,388
2,169,388
468,522468,522
2,114,155
2,114,155
552,767
552,767
2,918,659
2,918,659
735,372
735,372¥34,896,634¥34,895,880

Message from theGroup CFO

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

Our strategies forcreating value

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

Foundations for our
corporate value(Millions of yen)

As of March 31, 2021abPre-credit
derivatives RWA
Actual RWA¥¥527,672
527,672
1,073,775
1,073,775
26,066,862
26,066,080
2,624,532
2,624,532
439,097
439,097
1,985,258
1,985,258
492,788492,788
3,995,461
3,995,461
873,010873,010¥38,078,459¥38,077,677

Data section(C) CR7: IRB - Effect on RWA of Credit Derivatives Used as CRM Techniques

Message from theGroup CEO

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

302

Credit Risk Mitigation Techniques、Equity investments in funds

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy■ Counterparty Credit Risk
(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 abilateral 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 collateral in cases where our credit profile deteriorates.
(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, 2021cdAlpha used forcomputingregulatory
EEPE
EAD
／
1.4
／
／
2,292,475
1.4
／
／

a

b

Replacementcost¥1,167,038／／

Potential
futureexposure¥733,137
／
／

／

／

／

／
／

／
／

／
／

e

f

EAD
post-CRM¥1,900,176
3,209,465
55,492¥448,051
1,078,444
37,058／

16,647,717

747,471／／／¥2,311,024

RWA(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, 2020cdAlpha used forcomputingregulatory
EEPE
EAD
／
1.4
／
／
2,567,614
1.4
／
／

a

b

Replacement
cost¥184,328／／

Potential
futureexposure¥259,484
／
／

／

／

／

／
／

／
／

／
／

e

f

EAD
post-CRM¥443,813
3,594,660
61,562¥165,699
1,216,072
33,887／

15,037,228

798,982／／／¥2,214,641

RWA(B) CCR2: Credit Valuation Adjustment (CVA) Capital Charge(Millions of yen)

As of March 31, 2021a
EAD post-CRM
1
2
3
4
5

b
RWA

¥／
／
3,796,094¥3,796,094

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¥1,982,240¥1,982,240(Millions of yen)

As of March 31, 2020a
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

303

Risk Management of Counterparty Credit Risk、Quantitative Disclosure on Counterparty Credit Risk¥／／
3,999,491¥3,999,491b
RWA¥2,137,870¥2,137,870

5
6
7
8
9
10
11
12
13
14

0%

Total

¥18,326
4,614
-

¥-

¥250
-

¥479
-

¥-

¥104
-

¥-

¥-

¥18,326
5,449
-

-

-

5,314

995

-

15

-

-

6,325

1,320
-

1,256
-

-

-

-

-

-

-

1,320
1,256
-

-

-

625,234

10,932-

36,612--

672,779¥24,261¥1,256¥630,798¥12,407¥-756,637¥793,369¥-

756,637¥- ¥1,462,094(Millions of yen)

As of March 31, 2020
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

0%

¥13,229
3,236
-

Total

¥-

¥150
-

¥94
-

¥-

¥57
-

¥-

¥-

¥13,229
3,539
-

-

-

7,200

2,103

-

72

-

-

9,376

3,119
-

1,426
-

-

-

-

-

-

-

3,119
1,426
-

-

-

784,856

19,498-32,167--

836,523¥19,585¥1,426¥792,207¥21,696¥-

639,319¥671,617¥-

639,319¥- ¥1,506,532

Appendix

Data section

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

i

Our strategies forcreating value

1
2
3
4

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

i

Foundations for our
corporate valueaAbout Mizuho(Millions of yen)

As of March 31, 2021
b
c
d
e
f
g
h
Credit exposures amount (post CCF and post-CRM)
10%
20%
50%
75%
100% 150% Other

Message from theGroup CFO

(C) CCR3: Standardized Approach - CCR Exposures by Regulatory Portfolio and Risk Weights

Message from theGroup CEO

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

304

Quantitative Disclosure on Counterparty Credit Risk

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(D) CCR4: IRB - CCR Exposures by Portfolio and PD Scale(Millions of yen, %, number in the thousands,year)

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

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-total

As of March 31, 2021cde
Number of
Average
Averagecounterparty LGD (%)
maturityaEAD
post-CRMb
AveragePD (%)¥15,493,403
651
7,079
169
15,501,303

0.00
0.28
0.91
3.11
0.00

0.0
0.0
0.0
0.0
0.0

37.88
37.88
37.88
37.88
37.88

4.8
3.2
4.8
1.0
4.8

¥78,971
326
7,020
158
86,476

0.50
50.06
99.16
93.70
0.55

2,572,805
33,275
1,893
2,272
17,401
2,627,647

0.09
0.27
0.87
3.11
100.00
0.75

0.2
0.0
0.0
0.0
0.0
0.3

37.33
37.86
37.87
37.87
96.42
37.73

1.2
1.3
0.7
1.9
4.8
1.2

501,049
14,629
1,235
2,419
5,437
524,771

19.47
43.96
65.27
106.4931.25
19.97

1,364,065
137,235
67,413
34,46016,31828,154¥1,647,649

0.06
0.37
1.13
4.33
15.12
100.00
2.08

2.4
1.8
1.0
0.4
0.1
0.1
6.0

37.51
36.82
35.88
36.58
35.21
86.65
38.18

2.9
2.1
2.7
2.7
1.8
4.1
2.8

308,364
64,26552,061
40,717
27,29910,248¥502,956

22.60
46.82
77.22
118.15167.29
36.39
30.52

305

Quantitative Disclosure on Counterparty Credit Risk

f
RWA

g
RWA density(%)

g
RWA density
(%)

RWA

¥13,665
17,805
6,843
4,596
1,547
482
44,941

0.12
0.39
1.13
3.16
15.12
100.00
2.28

0.0
1.2
0.8
0.2
0.1
0.0
2.5

37.65
27.80
21.78
21.76
26.71
40.97
29.36

4.7
3.5
3.3
3.8
3.2
2.6
3.9

¥6,563
6,991
2,887
2,595
1,727
227
20,992

48.03
39.26
42.18
56.45
111.61
47.19
46.70

307,635
152,855
52,949
9,036
2,867
2,650
527,996

0.09
0.36
1.07
4.44
15.12
100.00
0.92

0.2
0.1
0.0
0.0
0.0
0.0
0.3

39.88
37.88
37.88
37.88
37.88
53.49
39.12

4.0
3.9
3.9
3.1
2.8
4.8
3.9

103,590
96,09449,766
11,4825,444
1,564
267,941

33.67
62.86
93.98
127.06189.84
59.00
50.74

-

-

-

-

-

-

-

826
3
40
5
876
¥20,350,414

1.77
3.81
13.70
100.00
2.95
0.29

0.9
0.0
0.0
0.0
1.0
10.4

27.33
4.51
28.91
31.99
27.34
37.89

／
／
／
／
／
284
／
0
／
22
／
2
／
309
4.2 ¥1,403,448

34.44
6.48
54.03
37.86
35.26
6.89

About MizuhofMessage from theGroup CFOb
AveragePD (%)

Our strategies forcreating valueaEAD
post-CRM

Appendix

Data section

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)

As of March 31, 2021cde
Number of
Average
Averagecounterparty LGD (%)
maturityFoundations for our
corporate value

CCR4-(Continued)

Message from theGroup CEO

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

306

Quantitative Disclosure on Counterparty Credit Risk

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(Millions of yen, %, number in the thousands,year)

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

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-total

As of March 31, 2020cde
Number of
Average
Averagecounterparty LGD (%)
maturityaEAD
post-CRMb
AveragePD (%)¥13,420,020
30
4,360
14
13,424,426

0.00
0.26
0.99
3.06
0.00

0.0
0.0
0.0
0.0
0.0

37.83
37.83
37.83
37.83
37.83

4.6
2.9
4.5
1.0
4.6

¥85,889
14
4,236
13
90,153

0.64
46.64
97.14
93.01
0.67

1,408,013
28,5091,365
874
1,438,763

0.05
0.28
1.41
3.06
0.06

0.3
0.0
0.0
0.0
0.4

37.83
37.81
37.56
37.83
37.82

2.3
1.5
0.6
2.1
2.3

316,582
13,7261,031
929
332,269

22.48
48.14
75.53
106.2823.09

1,760,853
109,197
94,58842,656
12,3992,835¥2,022,530

0.05
0.35
1.27
3.32
14.88
100.00
0.43

2.5
2.0
1.2
0.4
0.1
0.1
6.5

37.75
35.89
36.20
35.65
36.14
54.25
37.54

3.2
2.3
2.5
2.4
1.5
2.9
3.1

403,040
49,17074,74645,307
20,834
1,221¥594,320

22.88
45.02
79.02
106.21
168.03
43.08
29.38

307

Quantitative Disclosure on Counterparty Credit Risk

f
RWA

g
RWA density
(%)

RWA

¥10,896
21,041
9,763
6,232
1,486
415
49,836

0.11
0.37
1.11
3.33
14.88
100.00
2.09

0.0
1.3
1.0
0.2
0.1
0.0
2.8

36.44
28.50
24.72
21.45
27.40
33.94
28.63

4.8
3.8
3.4
4.1
3.6
2.9
4.0

¥5,457
8,608
4,844
3,547
1,741
158
24,357

50.08
40.91
49.61
56.91
117.1738.06
48.87

453,862
140,746
90,386
5,287
4
3,184
693,472

0.09
0.36
0.98
4.27
14.88
100.00
0.75

0.2
0.0
0.0
0.0
0.0
0.0
0.3

38.92
37.83
37.83
37.83
37.83
53.28
38.62

4.4
4.2
4.5
3.3
1.0
4.8
4.4

164,800
92,83988,431
6,775
8
1,870
354,727

36.31
65.96
97.83
128.13171.98
58.74
51.15

-

-

-

-

-

-

-

1,233
6
81
4
1,328
¥17,630,357

1.88
3.88
13.71
100.00
2.96
0.09

1.01
0.01
0.07
0.01
1.10
11.42

33.09
4.46
34.25
41.31
33.08
37.80

／
／
／
／
／
521
／
0
／
51
／
2
／
577
4.2 ¥1,396,406

42.30
6.42
63.95
47.29
43.46
7.92

(E) CCR5: Composition of Collateral for CCR Exposure(Millions of yen)

As of March 31, 2021abcdCollateral 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¥7,700¥9,676,817¥22,521 ¥12,270,974¥1,339,361
18,189,691
320,132
557,899
207,953
669,633
3,025,404
28,21912,195,801
73,166
10,467,240
8,307,001
183,888
25,715,792
522,388
121,646
225,788322,442805－
805
823,649－
21,760,532－
5,352
2,242,066
3,630
344,833－
147,591
7,893
－
－
－
－
¥866,014 ¥70,252,482¥826,029 ¥23,683,244 ¥34,160,855

Fair value of
postedcollateral¥4,274,143
10,203,460
2,278,399
15,517,658
23,8701,261,963
1,556,019
423,116¥35,538,631

308

Quantitative Disclosure on Counterparty Credit Risk

About Mizuhog
RWA density(%)

Message from theGroup CFOf

Our strategies forcreating valueb
AveragePD (%)

Foundations for our
corporate valueaEAD
post-CRM

Data section

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)

As of March 31, 2020cde
Number of
Average
Averagecounterparty LGD (%)
maturity

Appendix

CCR4-(Continued)

Message from theGroup CEO

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(Millions of yen)

As of March 31, 2020abcdCollateral 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¥29,677¥615,706¥41,232¥727,303¥1,225,770
18,064,321
705,469
528,893559,218
765,558
8,794,096
21,793
301,449
52,105324,936
8,826,034
62,98997,767
303,475
182,898
310,392
14,734－－－
827,85461
36,172
61
9,776
1,951,499－
162,332－
107,448
13,067－－－－¥834,725¥1,742,321¥956,094¥2,117,921 ¥40,013,036

Fair value of
postedcollateral¥10,143,540
10,573,454
2,563,951
14,569,644
72,823
1,425,685
1,425,996
531,918¥41,307,015(F) CCR6: Credit Derivatives Exposures(Millions of yen)

As of March 31, 2021
aProtection 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
2
3
4
5
6

b
Protection sold

¥3,341,445
2,028,684
49,708－500¥5,420,338¥3,160,809
1,656,414
560,062－－¥4,990,286

2,428(107,267)

92,398(5,374)(Millions of yen)

As of March 31, 2020a
Protection 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
2
3
4
5
6

309

Quantitative Disclosure on Counterparty Credit Riskb
Protection sold

¥1,561,051
1,084,242
243,973
1,100¥2,890,367¥1,273,329
750,676
33,314¥2,057,320

26,832(16,830)

12,933(16,264)

RWA
RWA as of March 31, 2019

Breakdown of changes during thisreporting period¥878.8376.8(7.5)(30.3)(1.7)¥1,216.0

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, 2020

(Billions of yen)

No.
1
2
3
4
5
6
7
8
9

RWA
RWA as of March 31, 2020

Breakdown of changes during thisreporting period¥1,216.0(178.9)
10.4
29.7
1.1
¥1,078.4

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, 2021

About Mizuho(Billions of yen)

No.
1
2
3
4
5
6
7
8
9

Message from theGroup CFO

(G) CCR7: RWA flow statements of CCR exposures under EPE method

Message from theGroup CEO

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

1
2
3
4
5
6
7
8
9
10
11
12

／
¥1,271,739¥19,989

299,619519,205
452,915－594,160
688,143
376,395－／

2,539
12,097
5,352－／
14,177
131,936
－
－

－

－

－
－
－
－
－
－
－
－

－
－
－
－
／
－
－
－

Appendix

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
fund contributions); 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¥166,104

Foundations for our
corporate valuea
EAD (post-CRM)

Data section(Millions of yen)

As of March 31, 2021

Our strategies forcreating value(H) CCR8: Exposures to Central Counterparties

310

Quantitative Disclosure on Counterparty Credit Risk

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(Millions of yen)

As of March 31, 2020a
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
fund contributions); 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

311

Quantitative Disclosure on Counterparty Credit Risk

／

b
RWA
¥163,062¥996,454¥15,025

328,996294,314373,143－
541,202658,624
289,075
－
／

2,262
7,818
4,944
－
／
13,581
134,454
－
－

－

－

－
－
－
－
－
－
－
－

－
－
－
－
／
－
－
－

(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 withother direct 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
maintain a 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, ARTEMIS FUNDING CORPORATION,
N&M FUNDING CORPORATION, Denshi Saiken Kaitori Godo Kaisha, JAPAN SECURITIZATION CORPORATION,
Allstar Funding Co., Ltd, SPARCS FUNDING CORPORATION, PERPETUAL FUNDING CORPORATION,
Working Capital Management Co. L.P., ALWAYS CAPITAL CORPORATION, HORIZON CAPITAL CORPORATION
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
the ability, quality and operating performance of originators and managers in charge of controlling the underlying assets
as well 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
carry out periodic monitoring on investment amount and performance on securitization transactions and report thesituations to our Risk Management Committee, etc.

312

Summary of Securitization Exposure and Its Risk Management

About Mizuho
Message from theGroup CFO(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.

Our strategies forcreating value

Our role in securitization transactions
We are associated with securitization transactions from various purposes and positions through our banking book andtrading book.

Foundations for our
corporate value(1) Summary of Risk Management Regarding Securitization Exposures

Data section

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.

Appendix■ Securitization Exposures

Message from theGroup CEO

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

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 1,250% 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.
(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).
(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, 2021
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¥¥¥- ¥1,442,224¥- ¥1,442,224 ¥1,698,613¥- ¥1,698,613
1 Retail (total) - of which
2587,468
587,468
residential mortgage
3credit card
636,995
636,995
60,89960,8994other retail exposures
805,228805,228 1,050,244- 1,050,244
re-securitization
5
6 Wholesale (total) - of which
89,73598,531
188,266
266,927
266,927 1,581,210- 1,581,210
7
89,73598,531
188,266
11,56911,569588,851
588,851loans to corporates
8commercial mortgage
18
18
9lease and receivables
173,949
173,949
766,625
766,625
10other wholesale
81,40981,409225,714
225,71411
re-securitization(Millions of yen)

As of March 31, 2020
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¥¥¥- ¥1,132,931¥- ¥1,132,931 ¥1,487,047¥- ¥1,487,047
1 Retail (total) - of which
2582,986
582,986
residential mortgage
3credit card
375,844375,844
72,24872,2484other retail exposures
757,087
757,087
831,812
831,812re-securitization
5
6 Wholesale (total) - of which
81,692
192,559274,252
258,517
258,517 1,516,295- 1,516,295
781,692
192,559274,252
18,145
18,145611,982
611,982loans to corporates
8commercial mortgage
1717
9lease and receivables
158,812
158,812745,358
745,358
10
other wholesale
81,56081,560158,937
158,93711
re-securitization-

313

Summary of Securitization Exposure and Its Risk Management、Accounting Policies for Securitization Transactions、Quantitative Disclosure Items
for Securitization Exposure(Millions of yen)

About Mizuho
Appendix

Data section

Foundations for our
corporate value

As of March 31, 2020
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¥¥¥¥¥¥- ¥30,122¥- ¥30,122
1 Retail (total) - of which
2
7,414
7,414
residential mortgage
3credit card4other retail exposures
21,957
21,957
re-securitization
750
750
5
6 Wholesale (total) - of which
9,703
9,703
7
9,589
9,589
loans to corporates
8commercial mortgage
9lease and receivables
113
113
10
other wholesale
11
re-securitization-

Message from theGroup CFO(Millions of yen)

As of March 31, 2021
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¥¥9,401¥¥¥¥¥¥¥9,401
1 Retail (total) - of which
2
6,547
6,547
residential mortgage
3credit card4other retail exposures
1,404
1,404
re-securitization
1,449
1,449
5
6 Wholesale (total) - of which
14,86014,8607
14,533
14,533loans to corporates
8commercial mortgage
9lease and receivables
327
327
10
other wholesale
11
re-securitization-

Our strategies forcreating value(B) SEC2: Securitization Exposures in the Trading Book by Type of Underlying Assets

Message from theGroup CEO

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

314

Quantitative Disclosure Items for Securitization Exposure2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(C) SEC3: Securitization Exposures in the Banking Book and Associated Regulatory Capital Requirements Bank Acting as Originator or as Sponsor(Millions of yen)ab

As of March 31, 2021
d
e

c

f

g

h

Of which
Of which
Traditional
Of which
retailOf which
reOf which Of which
Total
exposures securitization securitization underlying wholesale securitization senior non-senior
Exposure values (by RW bands)¥1,583,238 ¥1,524,813 ¥1,524,813 ¥1,221,469
1 ≤20% RW
2 >20% to 50% RW
125,109
93,54293,54249,0003 >50% to 100% RW
118,110
118,110
118,110116,394
4 >100% to <1250% RW
70,96062,42062,42055,3605 1250% RW
Exposure values (by regulatory approach)
1,897,419 1,798,887 1,798,887 1,442,224
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)
428,679
410,969
410,969
333,096
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
34,29432,87732,877
26,647
14 Internal Ratings-Based Approach (SEC-IRBA)
15 External Ratings-Based Approach (SEC-ERBA)
16 Standardised Approach (SEC-SA)
17 1250%
-

i

j

k

¥303,344
44,541
1,715
7,060
-

¥-

¥-

¥-

356,663----

77,873
-

-

-

-

6,229
-

-

-

-

As of March 31, 2021
l
m

n

o

Of which
Of which
retailOf which
reOf which Of which
Synthetic Of which
securitization securitization underlying wholesale securitization senior non-senior
Exposure values (by RW bands)¥58,425
1 ≤20% RW
2 >20% to 50% RW
31,566
3 >50% to 100% RW
4 >100% to <1250% RW
8,539
5 1250% RW
Exposure values (by regulatory approach)
98,5316 Internal Ratings-Based Approach (SEC-IRBA)
7 External Ratings-Based Approach (SEC-ERBA)
8 Standardised Approach (SEC-SA)
9 1250%RWA (by regulatory approach)
17,71010 Internal Ratings-Based Approach (SEC-IRBA)
11 External Ratings-Based Approach (SEC-ERBA)
12 Standardised Approach (SEC-SA)
13 1250%
Capital charge after cap
1,416
14 Internal Ratings-Based Approach (SEC-IRBA)
15 External Ratings-Based Approach (SEC-ERBA)
16 Standardised Approach (SEC-SA)
17 1250%-315

Quantitative Disclosure Items for Securitization Exposure¥58,425
31,566
8,539-¥-¥58,425
31,566
8,539
-

¥-

¥-

¥-

98,531--

98,531----

17,710--17,710
-

-

-

-

1,416
-

-

1,416
-

-

-

-

c

f

g

h

Of which
Of which
Traditional
Of which
retailOf which
reOf which Of which
Total
exposures securitization securitization underlying wholesale securitization senior non-senior

i

j

k

¥960,518
69,92733,24969,236-¥278,414
57,552
2,750
1,493
-

¥-

¥-

¥-

1,132,931-

340,210----

323,845-

70,860----25,907
-

5,668
-

-

-

-

As of March 31, 2020
l
m

n

o

Foundations for our
corporate value

Exposure values (by RW bands)¥1,419,244 ¥1,238,932 ¥1,238,932
1 ≤20% RW
2 >20% to 50% RW
127,480
127,480
127,480
3 >50% to 100% RW
36,00036,00036,0004 >100% to <1250% RW
82,29770,72970,7295 1250% RW
680
Exposure values (by regulatory approach)
1,665,022 1,473,142 1,473,142
6 Internal Ratings-Based Approach (SEC-IRBA)
7 External Ratings-Based Approach (SEC-ERBA)
8 Standardised Approach (SEC-SA)
9 1250%680
RWA (by regulatory approach)
427,656
394,705
394,705
10 Internal Ratings-Based Approach (SEC-IRBA)
11 External Ratings-Based Approach (SEC-ERBA)
12 Standardised Approach (SEC-SA)
13 1250%
8,500
Capital charge after cap
34,212
31,576
31,576
14 Internal Ratings-Based Approach (SEC-IRBA)
15 External Ratings-Based Approach (SEC-ERBA)
16 Standardised Approach (SEC-SA)
17 1250%680-¥-¥180,311
11,567
680

¥-

¥-

¥-

191,879680-

191,879
680

-

-

-

32,9518,500-

32,951
8,500

-

-

-

2,636
680

-

2,636
680

-

-

-

Appendix¥180,311
11,567680

Data section

Of which
Of which
retailOf which
reOf which Of which
Synthetic Of which
securitization securitization underlying wholesale securitization senior non-senior
Exposure values (by RW bands)¥180,311
1 ≤20% RW
2 >20% to 50% RW
3 >50% to 100% RW
4 >100% to <1250% RW
11,5675 1250% RW
680
Exposure values (by regulatory approach)
191,879
6 Internal Ratings-Based Approach (SEC-IRBA)
7 External Ratings-Based Approach (SEC-ERBA)
8 Standardised Approach (SEC-SA)
9 1250%680
RWA (by regulatory approach)
32,951
10 Internal Ratings-Based Approach (SEC-IRBA)
11 External Ratings-Based Approach (SEC-ERBA)
12 Standardised Approach (SEC-SA)
13 1250%
8,500
Capital charge after cap
2,636
14 Internal Ratings-Based Approach (SEC-IRBA)
15 External Ratings-Based Approach (SEC-ERBA)
16 Standardised Approach (SEC-SA)
17 1250%680

316

Quantitative Disclosure Items for Securitization Exposure

About MizuhobMessage from theGroup CFOa

Our strategies forcreating value(Millions of yen)

As of March 31, 2020
de

Message from theGroup CEO

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(D) SEC4: Securitization Exposures in the Banking Book and Associated Regulatory Capital Requirements Bank Acting as Investor(Millions of yen)ab

As of March 31, 2021
d
e

c

f

g

h

Of which
Of which
Traditional
Of which
retailOf which
reOf which Of which
Total
exposures securitization securitization underlying wholesale securitization senior non-senior
Exposure values (by RW bands)¥2,869,576 ¥2,869,576 ¥2,869,576 ¥1,378,790 ¥1,490,785
1 ≤20% RW
2 >20% to 50% RW
215,218
215,218
215,218
151,547
63,6703 >50% to 100% RW
17,822
17,822
17,822
6,089
11,732
4 >100% to <1250% RW
177,178
177,178
177,178
162,185
14,9935 1250% RW
28
28
28
0
28
Exposure values (by regulatory
approach)
2,094,491 2,094,491 2,094,491 1,108,816
985,675
6 Internal Ratings-Based Approach (SEC-IRBA)
7 External Ratings-Based Approach (SEC-ERBA)
1,183,639 1,183,639 1,183,639
588,133
595,506
8 Standardised Approach (SEC-SA)
1,663
1,663
1,663
1,663
9 1250%
28
28
28
0
28
RWA (by regulatory approach)
492,983
492,983
492,983
322,430
170,552
10 Internal Ratings-Based Approach (SEC-IRBA)
11 External Ratings-Based Approach (SEC-ERBA)
228,207228,207228,207
65,830162,376
12 Standardised Approach (SEC-SA)
249
249
249
249
13 1250%
353
353
353
0
353
Capital charge after cap
39,43839,43839,43825,794
13,64414 Internal Ratings-Based Approach (SEC-IRBA)
15 External Ratings-Based Approach (SEC-ERBA)
18,256
18,256
18,256
5,266
12,99016 Standardised Approach (SEC-SA)
19
19
19
19
17 1250%
28
28
28
0
28

i

j

k

As of March 31, 2021
l
m

¥-

¥-

¥-

-

-

-

-

-

-

-

-

-

n

o

Of which
Of which
retailOf which
reOf which Of which
Synthetic Of which
securitization 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%

317

Quantitative Disclosure Items for Securitization Exposure

¥-

¥-

¥-

¥-

¥-

¥-

¥-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

c

f

g

h

Of which
Of which
Traditional
Of which
retailOf which
reOf which Of which
Total
exposures securitization securitization underlying wholesale securitization senior non-senior

i

j

k

As of March 31, 2020
l
m

¥-

¥-

¥-

-

-

-

-

-

-

-

-

-

n

o

Foundations for our
corporate value

Exposure values (by RW bands)¥2,731,147 ¥2,731,147 ¥2,731,147 ¥1,311,887 ¥1,419,260
1 ≤20% RW
2 >20% to 50% RW
143,760
143,760
143,760
76,525
67,234
3 >50% to 100% RW
95,644
95,644
95,644
95,494150
4 >100% to <1250% RW
32,75132,75132,751
3,139
29,6125 1250% RW
37
37
37
0
37
Exposure values (by regulatory
approach)
1,800,680 1,800,680 1,800,680
901,583
899,096
6 Internal Ratings-Based Approach (SEC-IRBA)
7 External Ratings-Based Approach (SEC-ERBA)
1,202,625 1,202,625 1,202,625
585,463
617,161
8 Standardised Approach (SEC-SA)
9 1250%
37
37
37
0
37
RWA (by regulatory approach)
371,532
371,532
371,532
207,709
163,823
10 Internal Ratings-Based Approach (SEC-IRBA)
11 External Ratings-Based Approach (SEC-ERBA)
242,645
242,645
242,645
66,877
175,767
12 Standardised Approach (SEC-SA)
13 1250%
473
473
473
0
473
Capital charge after cap
29,722
29,722
29,722
16,616
13,105
14 Internal Ratings-Based Approach (SEC-IRBA)
15 External Ratings-Based Approach (SEC-ERBA)
19,411
19,411
19,411
5,350
14,06116 Standardised Approach (SEC-SA)
17 1250%
37
37
37
0
37

¥-

¥-

¥-

¥-

¥-

¥-

-

-

-

-

-

-

-

--

-

-

-

-

-

-

-

-

-

-

-

-

-

Appendix¥-

Data section

Of which
Of which
retailOf which
reOf which Of which
Synthetic Of which
securitization 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%

318

Quantitative Disclosure Items for Securitization Exposure

About MizuhobMessage from theGroup CFOa

Our strategies forcreating value(Millions of yen)

As of March 31, 2020
de

Message from theGroup CEO

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy■ Market Risk
See pages 116 to 118 for information regarding our market risk management structure, etc.
(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
and stocks is referred to as specific risk. In principle, we calculate market risk equivalent amounts by determining bothgeneral market risk and specific risk by applying the Internal Models Approach (IMA) to the former and the standardized
approach to the latter, and by simply adding up both amounts. The Internal Models Approach is applied to tradingtransactions and calculated by adding up VAR and stressed VAR.
(A) MR1：Market risk under standardized approach

No.
1
2
3
4
5
6
7
8
9

(Millions of yen)
As of March 31, 2021
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

As of March 31, 2020
RWA
(Risk equivalent / 8%)¥454,781
339,581
57,630133,209¥428,815
312,525
47,344
182,860

52,209122,707¥1,160,121

7,609
84,777¥1,063,932(B) MR2:RWA flow statements of market risk exposures under IMA(Billions of yen)
A

No.
1a
1b
1c
2
3
4
5
6
7
8a
8b
8c

319

Trading Activities

VAR

RWA as of March 31, 2020
Adjustment to RWA as of March 31, 2020
IMA values as of March 31, 2020
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, 2021
Adjustment to RWA as of March 31, 2021
RWA as of March 31, 2021

B
StressedVAR¥402.3 ¥1,010.6
2.11
3.60
190.2
280.1
(122.5)(22.5)(4.0)
43.4(69.3)
89.5
94.2
290.5
3.05
3.02
288.0
880.4

C

D

E

F

IRC

CRM

Other

Total

¥-

¥-

／ ¥1,413.0
／
3.00
／
470.4
／
(145.0)
／
／
／
／
39.3
／
20.1
／
384.8
／
3.03
／
1,168.5

¥602.8
2.76
217.9
68.3
(100.6)
94.5
280.1
3.60
1,010.6

F

IRC

CRM

Other

Total

¥-

¥-

(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

¥861.8
3.03
283.9
125.4
(105.5)
166.6
470.4
3.00
1,413.0(Millions of yen)
As of March 31, 2021

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)

／
／
／
／
／
／
／
／
／
／
／
／

As of March 31, 2020

¥24,455
11,8305,758
7,538¥21,317
8,038
5,022
15,21844,314
22,821
17,38923,24639,947
21,633
13,614
22,415----

Appendix

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,
we select 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.

About Mizuho¥259.0
3.92
66.0
57.1
(4.9)
72.1
190.2
2.11
402.3

E

Message from theGroup CFO

RWA as of March 31, 2019
Adjustment to RWA as of March 31, 2019
IMA values as of March 31, 2019
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, 2020
Adjustment to RWA as of March 31, 2020
RWA as of March 31, 2020

D

Our strategies forcreating value

1a
1b
1c
2
3
4
5
6
7
8a
8b
8c

VAR

C

Foundations for our
corporate value

No.

B
Stressed
VAR

Data section(Billions of yen)A

Message from theGroup CEO

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

320

Trading Activities2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(D) MR4：Back testing results of IMA
As of March 31, 2021

As of March 31, 2020

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 1 as of March 31, 2021 (3 as ofMarch 31, 2020). The following details information relevant to the excess incident:
VAR calculation date: January 11, 2021; Amount in excess: JPY 449 million; Primary cause of the excess: Commodity price and FX fluctuations(2) Banking Activities
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.
(A) IRRBB1：Interest rate risk
ΔEVE
As of March
As of March
31, 2021
31, 2020(Millions of yen)d
ΔNII
As of March
As of March
31, 2021
31, 2020¥1,004,953
0
398,454
101,782
383,205
26,466
1,004,953¥(330,939)
545,196／／／／545,196

a

No.
1
2
3
4
5
6
7

Parallel up
Parallel down
Steepener
Flattener
Short rate up
Short rate down
Maximumb¥901,099
0333,766
102,550
329,962
41,523901,099e
As of March 31, 2021

8

Tier1 capital¥9,701,931

c¥(343,258)
440,507／／／／440,507f
As of March 31, 2020

¥9,024,404

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
money as 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 0.7 years for yen deposits and 0.1 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 theirearly 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.

321

Trading Activities、Banking Activities

(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,
we manage 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.

About Mizuho■ Investment or Equity Exposure

Message from theGroup CEO

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

See pages 120 to 121 for a summary of our operational risk management policies, etc.
(2) Approach Used for the Measurement of Operational Risk Equivalent

Appendix

Data section

Foundations for our
corporate value

We use the Advanced Measurement Approach for the calculation of operational risk equivalent. See pages 121 to 123 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, 2021. 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
Information & Research Institute Corporation Inc. (Mizuho Research & Technologies, Ltd. from April 1, 2021); Mizuho
Credit Guarantee Co., Ltd.; Mizuho Business Service Co., Ltd.; Mizuho Trust Operations Co., Ltd.; Mizuho TrustBusiness Operations Co., Ltd.; Mizuho Trust Retail Support Co., Ltd.; Mizuho Bank Europe N.V.; and Mizuho
International plc.

Our strategies forcreating value(1) Summary of Operational Risk Management and Procedures

Message from theGroup CFO

■ Operational risk

322

Summary of Risk Profile, Risk Management Policies/ Procedures and Structure、Summary of Operational Risk Management and Procedures、Approach
Used for the Measurement of Operational Risk Equivalent2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy■Composition of Leverage Ratio(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
2021
2020
disclosure disclosure
template
template(Table 2) (Table 1)(1)
On-balance sheet exposures
On-balance sheet exposures before deducting adjustment items¥155,709,473¥176,472,143
1
Total assets reported in the consolidated balance sheet
1
185,680,190
214,659,077
1a
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
7of the leverage ratio on a consolidated basis (except those included
1cin the total assets reported in the consolidated balance sheet)
The amount of assets that are deducted from the total assets reported in the
1d
3
29,970,716
38,186,933
consolidated balance sheet (except adjustment items) (-)
The amount of adjustment items pertaining to Tier1 capital (-)
2
7
1,304,886
1,120,264
Total on-balance sheet exposures(a) ¥154,404,587
3¥175,351,879(2)
Exposures related to derivative transactions
RC multiplied by 1.4 associated with derivatives transactions, etc.
4
Replacement cost associated with derivatives transactions, etc.
3,748,532
2,913,469
PFE multiplied by 1.4 associated with derivatives transactions, etc.
5
Add-on amount associated with derivatives transactions, etc.
8,748,822
6,853,455
The amount of receivables arising from providing cash margin
1,149,309
1,480,143
in relation to derivatives transactions, etc.
The amount of receivables arising from providing collateral,provided where deducted from the consolidated balance
6
sheet pursuant to the operative accounting framework
The amount of receivables arising from providing cash
143,761
266,007
margin, provided where deducted from the consolidatedbalance 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／／
8bank holding company acting as a clearing member is not
obliged to make any indemnification (-)
Adjusted effective notional amount of written credit derivatives
4,569,726
1,827,558
9
The amount of deductions from effective notional amount of
10
4,177,453
1,655,992
written credit derivatives (-)(b)
Total exposures related to derivative transactions¥14,182,698¥11,684,642
11
4(3)
Exposures related to repo transactions
The amount of assets related to repo transactions, etc.
12
14,331,366
20,824,650
13
The amount of deductions from the assets above (line 12) (-)
5,341,423
5,439,650
The exposures for counterparty credit risk for repo
14653,128
836,282transactions, etc.
The exposures for agent repo transactions
15／／
Total exposures related to repo transactions, etc.
(c)
16
5¥9,643,071¥16,221,282(4)
Exposures related to off-balance sheet transactions
Notional amount of off-balance sheet transactions
17
50,359,566
41,023,520
The amount of adjustments for conversion in relation to off18
28,043,292
23,303,756
balance sheet transactions (-)
Total exposures related to off-balance sheet transactions(d)19
6¥22,316,273¥17,719,764(5)
Leverage ratio on a consolidated basis
The amount of capital (Tier1 capital)(e)20
9,701,931
9,024,404
Total exposures ((a)+(b)+(c)+(d))(f) ¥200,546,630
21
8¥220,977,568
Leverage ratio on a consolidated basis ((e)/(f))
22
4.83%
4.08%

323

Composition of Leverage RatioAs of March 31, As of March 31,
2021
2020

／
／

¥240,452,651

／

4.03%

／

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 andleverage ratio" (Practical Guideline for specialized fields No. 4465 of the Japanese Institute of Certified Public Accountants). Note that thisexamination is not a part 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 theleverage ratio. Instead, it performs an examination to the extent both of us agreed to and reports the results to us.

The key drivers of material changes observed from the end of the previous reporting period tothe end of the current reporting period

Appendix

Data section

Foundations for our
corporate value

Leverage ratio as of March 31, 2021 is higher than March 31, 2020 due to a decrease in the total exposures as a resultof the exclusion of deposits with the Bank of Japan, based on the amendment of Japanese Financial Services
Agency(JFSA) Notification on June 30, 2020, under the provision to Paragraph 4 of Article 5 of the notification of JFSA
No. 12, 2019.

Message from theGroup CFO

¥200,546,630
39,906,021

About Mizuho(6)

Our strategies forcreating value

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 (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’))

Message from theGroup CEO

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324

Composition of Leverage Ratio

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Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy■ TLAC Regulations(1) TLAC1: TLAC composition for G-SIBs (at resolution group level)(Millions of yen, except percentage)ab
Basel III
Template
Items
As of March 31, As of March 31,
No.
2021
2020
(1)
Preferred resolution strategy
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.
and Mizuho Securities Co., Ltd. have reached the point of non-viability, losses incurred to themwould be passed to MHFG, the ultimate holding company. While this could lead to a resolutionof 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.
(2)
Regulatory capital elements of TLAC and adjustments(A)
1
Common Equity Tier 1 capital (CET1)¥7,849,969¥7,244,776
Additional Tier 1 capital (AT1) before TLAC adjustments
2(B)
1,851,961
1,779,627
3
AT1 ineligible as TLAC as issued out of subsidiaries to third parties (C)Other adjustments
4(D)
5
AT1 instruments eligible under the TLAC framework ((B)-(C)-(D))
1,851,961
1,779,627(E)(F)
6
Tier 2 capital (T2) before TLAC adjustments
1,683,464
1,697,873(357,938)(256,731)
Amortised portion of T2 instruments where remaining maturity > 1 year (G)7
T2 capital ineligible as TLAC as issued out of subsidiaries to third parties(H)
8
9
Other adjustments
245,650
210,907(I)(J)
10
T2 instruments eligible under the TLAC framework ((F)-(G)-(H)-(I))
1,795,752
1,743,698(K)
11
TLAC arising from regulatory capital ((A) + (E) + (J))
11,497,683
10,768,102(3)
Non-regulatory capital elements of TLAC
External TLAC instruments issued directly by the bank and(L)
123,649,134
3,506,196
subordinated to excluded liabilities
External TLAC instruments issued directly by the bank which are not subordinated／／13
to excluded liabilities but meet all other TLAC term sheet requirements
14of which: amount eligible as TLAC after application of the caps／／
External TLAC instruments issued by funding vehicles prior to 1 January 2022
／
／
15
(M)
16
Eligible ex ante commitments to recapitalise a G-SIB in resolution
1,687,049
1,553,530
TLAC arising from non-regulatory capital instruments before(N)
5,059,726
17
5,336,183
adjustments ((L) + (M))(4)
Non-regulatory capital elements of TLAC: adjustments(O)
18
TLAC before deductions ((K) + (N))
16,833,866
15,827,828
Deductions of exposures between MPE resolution groups that(P)
19
correspond to items eligible for TLAC (not applicable to SPE G-SIBs)(Q)
20
Deduction of investments in own other TLAC liabilities
4,699
3,441
(R)
21
Other adjustments to TLAC
(S)
22
TLAC after deductions ((O)-(P)-(Q)-(R))
16,829,166
15,824,386(5)
Risk-weighted assets and leverage exposure measure for TLAC purposes(T)
23
Total RWA
67,481,983
62,141,217(U)
24
Leverage ratio exposure measure
200,546,630
220,977,568(6)
TLAC ratios and buffers
TLAC before deduction of CET1 specific buffer requirement (as a25
24.93%
25.46%
percentage of RWA) ((S)/(T))
21.42%
21.95%
25a
TLAC as a percentage of RWA
26
TLAC as a percentage of leverage ratio exposure measure ((S)/(U))
8.39%
7.16%
CET1 available after meeting the bank's minimum capital requirements
7.13%
7.15%
27
28
3.51%
3.51%
Total of bank CET1 specific buffer requirements
29of which: capital conservation buffer requirement
2.50%
2.50%
of which: countercyclical buffer requirement
30
0.01%
0.01%
of which: bank G-SIB/D-SIB additional requirements
31
1.00%
1.00%

325

TLAC Regulations

About Mizuho
Appendix

Data section

Foundations for our
corporate value

Our strategies forcreating value

Message from theGroup CFO(Millions of yen, except percentage)ab
Basel III
Template
Items
As of March 31, As of March 31,
No.
2021
2020
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)(U)
Leverage ratio exposure measure¥200,546,630／
The amount of deposits with the Bank of Japan
39,906,021／(U')
Leverage ratio exposure measure (excluding the impact of any
240,452,651／
applicable temporary exemption of deposits with the Bank of Japan)
TLAC as a percentage of leverage ratio exposure measure (excluding theimpact of any applicable temporary exemption of deposits with the Bank
6.99%／
of Japan) ((S)/(U'))

Message from theGroup CEO

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

326

TLAC Regulations

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(2) TLAC2:Material subgroup entity – creditor ranking at legal entity level(Millions of yen)Mizuho Bank (Non-consolidated)
As of March 31, 2020
Creditor ranking
Basel III
Items
Template
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
11

1
most junior
✓
-

2

3

4

✓
Eligible Tier 2 capital
Other internal
Additional Tier 1 Tier 2 capital instruments subject
Common
TLAC eligible
capital instruments instruments
to phase-out
equityinstruments
arrangements
3,690,389- 1,805,004- 1,391,867- 163,245 393,000 3,506,196- 10,949,702
3,690,389- 1,805,004- 1,391,867- 163,245 393,000 3,506,196- 10,949,702
3,690,389- 1,805,000- 1,228,622- 3,506,196- 10,230,208- 864,017- 864,017- 105,000- 1,317,283- 1,422,283- 1,023,622- 1,044,705- 2,068,327

3,690,389-

Sum of
1 to 55
most senior
✓
-

✓

-

-

✓

-

-

100,000---

280,190- 1,805,000

-

-

-

-

-

-

-

380,190- 5,495,389* Additional Tier 1 capital instruments include eligible Tier 1 capital instruments subject to phase-out arrangements (4 million yen)

(Millions of yen)Mizuho Bank (Non-consolidated)
As of March 31, 2021
Creditor ranking
Basel III
Items
Template
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
11

1
most junior
✓
-

2

3

4

✓
Eligible Tier 2 capital
Other internal
Additional Tier 1 Tier 2 capital instruments subject
Common
TLAC eligible
capital instruments instruments
to phase-out
equityinstruments
arrangements
3,690,227- 1,873,004- 1,618,120- 166,080 353,000 4,526,854- 12,227,286
3,690,227- 1,873,004- 1,618,120- 166,080 353,000 4,526,854- 12,227,286
3,690,227- 1,873,000- 1,452,040- 3,649,134- 10,664,401- 426,272- 426,272- 223,040- 1,432,198- 1,655,238- 1,174,000- 1,469,576- 2,643,576

3,690,227

-

✓

-

-

✓

-

-

55,000---321,088- 1,873,000

-

-

-

-

-

-

* Additional Tier 1 capital instruments include eligible Tier 1 capital instruments subject to phase-out arrangements (4 million yen)

327

TLAC Regulations

Sum of
1 to 55
most senior✓--

376,088- 5,563,227

Is the resolution entity the creditor/investor?

2✓
Eligible Tier 2 capital instruments
subject to phase-out arrangements
10,00010,000-Sum of 1
to 3
3
most senior✓
Other internal TLAC eligible
instruments- 272,874- 272,874- 262,874-

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

-

-

-

-

-

262,87410
11(Millions of yen)Mizuho Trust & Banking (Non-consolidated)
As of March 31, 2021
Creditor ranking
Basel III
Template11
most junior

Items
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

-

✓
Other internal TLAC eligible
instruments--

262,874
262,874
262,874
-

-

-

-

-

-

262,874

Appendix

Data section11

Sum of 1
to 2

2
most senior

About Mizuho

Items

1
most junior✓-Message from theGroup CFO

Basel III
Template1

Our strategies forcreating value

As of March 31, 2020
Creditor ranking

Foundations for our
corporate value(Millions of yen)Mizuho Trust & Banking (Non-consolidated)

Message from theGroup CEO

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

328

TLAC Regulations

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(Millions of yen)Mizuho Securities (Non-consolidated)
As of March 31, 2020
Creditor ranking
Basel III
Template
1

Items
Is the resolution entity the creditor/investor?

1
most junior✓-

Sum of 1
to 3
32
most senior✓✓Long-term subordinated
Other internal TLAC
debt/Short-term subordinated debt
instruments
90,000- 596,816
90,000- 596,816- 506,816-

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

485,530
485,530
485,530-

21,286
21,286
21,286
-

-

-

-

-

-

-

-

485,530

21,286----

506,816

10
11(Millions of yen)Mizuho Securities (Non-consolidated)
As of March 31, 2021
Creditor ranking
Basel III
Template
1

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

485,530
485,530
485,530-

21,286
21,286
21,286
-

-

-

-

-

-

-

-

485,530

21,286----

506,816

11

TLAC Regulations

Is the resolution entity the creditor/investor?

Sum of 1
to 3
32
most senior✓✓Long-term subordinated
Other internal TLAC
debt/Short-term subordinated debt
instruments
90,000- 596,816
90,000- 596,816- 506,816
-

2

10

329

Items

1
most junior✓-Message from theGroup CEO

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(3) TLAC3:Resolution entity – creditor ranking at legal entity level(Millions of yen)Mizuho Financial Group (Non-Consolidated)

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 junior
Additional Tier 1
Commoncapital instruments
equity3,453,427
1,805,000
3,453,427
1,805,000
3,453,427
1,805,000-

3Tier 2 capital
instruments
1,555,112
1,555,112
1,555,112
431,490
1,023,622

Sum of 1 to 44
most senior
Unsecuredsenior debts
3,511,476 10,325,015
5,280
5,280
3,506,196 10,319,735
3,506,196 10,319,735
864,017864,017
1,317,283
1,748,773
1,044,705
2,068,327--

100,000

280,190

380,190

3,453,427

1,805,000--

5,258,427

About Mizuho

Basel III
Template

Message from theGroup CFO

As of March 31, 2020
Creditor ranking*1 :Tier 2 capital instruments include eligible Tier 2 capital instruments subject to phase-out arrangements issued by SPC (163,245 million yen)
*2 :Internal transactions are excluded from unsecured senior debts*3 :Excluded liabilities are recognized on a conservative basis in consideration of the materiality of the amounts(Millions of yen)

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 junior
Additional Tier 1
Commoncapital instruments
equity3,453,427
1,873,000
3,453,427
1,873,000
3,453,427
1,873,000-

3Tier 2 capital
instruments
1,784,200
1,784,200
1,784,200
166,080
389,120
1,174,000

Sum of 1 to 44
most senior
Unsecuredsenior debts
4,532,618 11,643,245
5,764
5,764
4,526,854 11,637,481
3,649,134 10,759,761
426,272592,352
1,432,198
1,821,318
1,469,576
2,643,576--

55,000321,088376,088

3,453,427

1,873,000--

5,326,427

Foundations for our
corporate value

As of March 31, 2021
Creditor ranking

Our strategies forcreating value

Mizuho Financial Group (Non-Consolidated)*1 :Tier 2 capital instruments include eligible Tier 2 capital instruments subject to phase-out arrangements issued by SPC (166,080 million yen)

Data section*2 :Internal transactions are excluded from unsecured senior debts

Appendix*3 :Excluded liabilities are recognized on a conservative basis in consideration of the materiality of the amounts

330

TLAC Regulations

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Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy■ Geographical Distribution of Credit Exposures Used in the Countercyclical Buffer(1) CCyB1: Geographical distribution of credit exposures used in the countercyclical buffer(Millions of yen, except percentage)
As of March 31, 2021abcd
Risk-weighted assets
GeographicalCountercyclicalused in the computation CountercyclicalCountercyclicalbreakdown
buffer rateof the countercyclicalbuffer requirements
buffer amountbufferHong Kong SAR
1.00%
528,016／／
Luxembourg
0.50%
271,847／／
Subtotal／
799,864／／
Total／
55,211,072
0.01%
6,748
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
based on 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, 2020aGeographicalbreakdownCountercyclicalbuffer rate

FranceHong Kong SAR
Luxembourg
Subtotal
Total

0.25%
1.00%
0.25%
／
／

b
Risk-weighted assets
used in the computationof the countercyclicalbuffer235,298
525,507
252,773
1,013,578
49,862,640cdCountercyclicalbuffer requirements

Countercyclicalbuffer amount

／
／
／
／
0.01%

／
／
／
／
6,214

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
based on the locations of counterparties, are calculated based on the country or region in which the reporting office is located.

■Indicators for Assessing Global Systemically Important Banks (G-SIBs)(1) GSIB1:Disclosure of G-SIB indicators
Category
1
2
3
4
5
6
7
8
9
10
11
12

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
Notional amount of over-the-counter derivatives
Level 3 assets
Trading and available for sale securities(Millions of yen)
As of March 31, As of March 31,
2021
2020
57,233,736
57,180,192
39,284,794
40,186,448
241,757,537
222,097,832
15,878,955
14,160,806
18,558,968
18,733,603
34,129,399
26,108,286
80,709,479
99,479,933
5,514,937,889 4,997,671,697
19,481,804
15,291,594
1,409,658,971 1,366,796,397
3,795,782
2,245,462
11,867,627
11,063,839

331

Geographical Distribution of Credit Exposures Used in the Countercyclical Buffer、Indicators for assessing Global Systemically Important Banks(G-SIBs)

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

High-Quality Liquid Assets
1

Cash Outflows
2
3
4
5
6
7
8
9
10
11

(1)

Total high-quality liquid assets (HQLA)(2)Cash outflows related to unsecured retail fundingof which, Stable depositsof which, Less stable deposits
Cash outflows related to unsecured wholesalefundingof which, Qualifying operational deposits

For the three months ended December 31, 2020／／

¥72,792,220¥71,926,717

TOTAL UNWEIGHTEDVALUETOTAL WEIGHTEDVALUETOTAL UNWEIGHTEDVALUETOTAL WEIGHTED
VALUE

51,202,422

3,992,606

50,662,170

3,952,397

16,148,885

484,466

15,951,927

478,557

35,053,536

3,508,139

34,710,243

3,473,839

81,990,295

47,394,248

80,909,788

45,699,788

0

0

0

0

of which, Cash outflows related to unsecured
wholesale funding other than qualifying
operational deposits and debt securities

70,636,015

36,039,968

71,620,477

36,410,477

of which, Debt securities

11,354,279

11,354,279

9,289,311

9,289,311／

1,564,576／

1,472,416

32,654,509

9,125,814

31,444,151

8,684,337

1,983,351

1,983,351

1,882,879

1,882,879

32,52032,52029,272

29,272

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 derivatives
transactions, etc

12of which, Cash outflows related to funding
programs

13of which, Cash outflows related to credit andliquidity facilities

30,638,637

7,109,942

29,531,998

6,772,184

14

Cash outflows, etc. related to contractual funding
obligations

7,598,790

1,951,439

7,369,630

1,901,720

15

Cash outflows related to contingencies

75,980,780

626,183

74,582,917

629,450

16

Total cash outflows／

64,654,868／

62,340,110

TOTAL UNWEIGHTEDVALUETOTAL WEIGHTEDVALUETOTAL UNWEIGHTEDVALUETOTAL WEIGHTED
VALUE

Cash inflows related to secured lending andinvestments, etc.

13,909,125

1,264,397

13,096,064

1,266,020

18

Cash inflows related to collections of loans, etc

10,940,046

7,584,703

10,558,591

7,287,068

19

Other cash inflows

9,608,272

2,198,718

9,212,639

1,980,765

20

Total cash inflows

34,457,445

11,047,819

32,867,294

10,533,853

Total HQLA allowed to be included in thecalculation／

72,792,220／

71,926,717

Cash Inflows
17

Consolidated liquidity coverage ratio
21

(3)

(4)

22

Net cash outflows／¥53,607,048／¥51,806,256

23

Consolidated liquidity coverage ratio／

135.8%／

138.9%

24

The number of data used to calculate the average
value

63

Appendix

60

About Mizuho

For the three months ended March 31, 2021

Message from theGroup CFO

(In million yen, the number of data)
Item

Our strategies forcreating value(1) Disclosure of quantitative information regarding Liquidity Coverage Ratio

Foundations for our
corporate value

The information disclosed herein is in accordance with "The matters pertaining to the criteria to determine the soundness ofliquidity risk among the matters separately prescribed by the Commissioner of the Financial Services Agency regarding the status
of sound management, 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).

Data section■Liquidity Coverage Ratio

Message from theGroup CEO

Status of Sound Management of Liquidity Risk

332

Liquidity Coverage Ratio

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Sound Management of Liquidity Risk

(2) Disclosure of qualitative information regarding Liquidity Coverage Ratio(A) Chronological changes in Liquidity Coverage Ratio
Our Consolidated LCR has remained stable over the past two years.
(B) Evaluation of the consolidated Liquidity Coverage Ratio Level
Our Consolidated LCR surpasses the final regulatory standard (100%), with no issues. Our Consolidated LCR disclosed
herein does not differ significantly from our original expectations, and we do not expect our Consolidated LCR to deviatesignificantly from the current level in the future.
(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 total amount of the
HQLA allowed to be included in the calculation and net cash outflow regarding main currencies (those currencies of which
the aggregate liabilities denominated amount to 5% or more of our total liabilities).
(D) Other matters regarding the Liquidity Coverage Ratio
We do not apply the "exception regarding qualifying operational deposits" in Article 28 of the Notice No. 62 and "theamount 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 our consolidated subsidiaries.

333

Liquidity Coverage Ratio¥47,981.9
6,421.3
42,567.4
885.5
41,681.9
2,865.9
24,145.0
20,920.5
463.5
2,760.9
14,670.9
12,433.9
2,236.9

Total¥41,069.7
5,377.1
33,978.7
860.2
33,118.5
2,338.4
15,702.5
12,601.9
272.5
2,828.0
15,077.6
12,702.2
2,375.3

96,970.880,425.7

Portion pledged as collateral(12,728.6)(9,478.3)

Total after the deduction above¥84,242.1¥70,947.3

Notes: 1. All securities included in the above table have fair value.
2. 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.

■ Status of Major Funding(Billions of yen)
As of March 31, 2021
Types of Financial Instruments

Within 1 year

1-3 years

3-5 years

5-7 years

7-10 years Over 10 years

Deposits
Negotiable Certificates of Deposit
Call Money and Bills Sold
Borrowed Money
Commercial Paper
Issued Bonds
Due to Trust Account¥129,715.7
16,870.9
1,312.7
6,375.1
456.0
1,411.4
1,160.6¥2,688.0
236.9
233.2
1,603.5-¥708.684.9
273.1
1,755.5
-

¥28.5
233.8
1,465.9
-

¥34.6
125.8
1,362.2-¥136.7
170.4
865.1
-

Total

¥157,302.8¥4,761.7¥2,822.2¥1,728.3¥1,522.7¥1,172.3(Billions of yen)

About Mizuho

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

Message from theGroup CFO

As of March 31, 2021 As of March 31, 2020

Our strategies forcreating value(Billions of yen)
Item

Foundations for our
corporate value■ Status of Major Liquid Assets

Message from theGroup CEO

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Within 1 year

1-3 years

3-5 years

5-7 years

7-10 years Over 10 years

Deposits
Negotiable Certificates of Deposit
Call Money and Bills Sold
Borrowed Money
Commercial Paper
Issued Bonds
Due to Trust Account¥127,327.0
12,985.2
2,263.0
4,104.9373.6
456.0
1,055.5¥2,904.2
232.2
376.2
2,153.5-¥742.666.2
192.5
1,503.1
-

¥46.1
220.4
1,170.8
-

¥42.6
112.9
1,126.6-¥126.8
202.7
676.5
-

Total

¥148,565.5¥5,666.3¥2,504.6¥1,437.5¥1,282.2¥1,006.1

Notes: 1. Regarding Deposits, Demand deposits are included in "Within 1 year"
2. Borrowed money or issued bonds with open ended, 0.0 billion, 1,820.0 billion, respectively, at March 31, 2020, and 30.0 billion, 1,858.0 billion, respectively, at March 31,
2021, are excluded.

334

Liquidity Coverage Ratio

Appendix

Types of Financial Instruments

Data section

As of March 31, 2020

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

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", whoare "persons who receive large amounts of compensation" and "materially affect the operation of business or thestate of assets of Mizuho group or its major consolidated subsidiaries."(a) Scope of "Major consolidated subsidiaries"
A "Major consolidated subsidiary" is a consolidated subsidiary, etc., (i) whose total assets as a percentage ofconsolidated total assets exceeds 2% of a bank holding company or bank and (ii) who materially affects the
management of our group. Specifically, those are Mizuho Bank, Ltd. ("MHBK"), Mizuho Bank (USA) and othersubsidiaries who conduct banking business similar to a branch of MHBK, Mizuho Trust & Banking Co., Ltd.
("MHTB"), Mizuho Securities Co., Ltd. ("MHSC") and Mizuho Securities USA Inc.
(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 ¥70 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 ofcompensation at each of the companies in this paragraph.
(c) Scope of "Persons who materially affect the operation of business or the state of assets of Mizuho group"
A "Person who materially affects the operation of business or the state of assets of Mizuho group" means 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 andother compensation, 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 chairman of the statutory Compensation Committee shall be an outside director, and in principle its members
shall be appointed from among the outside directors (or at least non-executive directors) in order to ensure
objectivity and transparency in director and executive officer compensation. As of March 2021, all three members of
the Compensation Committee, including the chairman, 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.

335

Qualitative disclosure

(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
creation for various stakeholders and improve corporate value through continuous and stable corporate growth,
based on our basic 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.

336

Qualitative disclosure

About Mizuho
Message from theGroup CFO

5

Note: 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.

Our strategies forcreating valueCompensation Committee(MHFG)

Foundations for our
corporate value

Number of meetings held
(April 2020 – March 2021)

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 directorsof 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.

Message from theGroup CEO

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory DisclosuresCompensation of Directors and Employees(b) We shall introduce, as necessary, methods to decrease or compel forfeiture of such deferred amounts or tocompel 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 nonexecutive
directors), and the Chairman 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. The basic compensation system for Officers Responsible for Business Execution shall be a “Basic Salary”,“Performance Payment” and “Stock Compensation” ,the composition ratio of compensation is determined inaccordance with the roles and responsibilities of Officers and is determined so that the composition ratio of fixedcompensation for Group CEO is minimized.The compensation for Non-Executive Officers Responsible forManagement Supervision, in principle, shall be in the form of fixed compensation consist of “Basic Salaries” and“Stock Compensation I,” from the perspective of ensuring the effectiveness of the supervisory function, and thecomposition shall, in principle, be 85% and 15% for “Basic Salaries” and “Stock Compensation I,” respectively.
(i) “Basic Salaries” shall factor in the function and responsibility of each Officer, etc., in addition to the standard
amount for each position, and payment will be made monthly in cash.
(ii) “Performance Payment” shall be made as a monetary incentive for Officers, etc., to achieve the annual budget 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 each position. “Performance Payment" shall be paid, in principle, within therange of 0% to 170% of the standard amount for each position. 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, as well as a decrease or forfeiture of the deferred amount depending on performance,
etc., of the company or the individual.
(iii) “Stock Compensation” shall be paid in the form of shares of common stock of Mizuho Financial Group consistingof “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 each position. A system shall be adopted whichenables a decrease or forfeiture of the amount by resolution of the Compensation Committee, etc., dependingon performance of the company or the individual.
(b) “Stock Compensation II” shall be paid in accordance with the status of achieving our Five-Year Business Plan in
addition to the standard amount for each position. "Stock Compensation II" shall be paid, in principle, within therange of 0% to 130% of the standard amount for each position.
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
other than 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.

337

Qualitative disclosureAbout Mizuho
Message from theGroup CFO
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.

Our strategies forcreating valuec. 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
specialized organizations.
IV. All members of the Compensation Committee shall be appointed from among outside directors (or at least nonexecutive directors) and the Chairman thereof shall be an outside director.
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.

Foundations for our
corporate value

For cases where compensation is designed individually, payment of compensation is also made in accordance withthe 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.

Message from theGroup CEO

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

338

Qualitative disclosure2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

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 made or paid in accordance with each officer’s performance, the result of organizations (our inhouse companies and units, etc.) that each Officer, etc., in charge of, and the status of achieving our 5-Year Business
Plan etc., against the annual business plan in addition to the standard amount of each positon. A certain amount of theperformance payments and the entire amount of the performance-based stock compensation shall be made or paid indeferred 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 that certain "Subject directors andemployees" 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 each position,and the payment level shall not change based on the performance of each officer. With regard to compensation forother employees, salary is determined according to their job duties and responsibilities. In addition, the proportion linked
to the performance bonus is determined through appropriately and comprehensively evaluating the contribution to
performance, including the degree of contribution to the organization, etc., so as not to become excessively
performance based.

339

Qualitative disclosure

18
¥870
779
－
88
88
2
－
15
390
218
18
171
165
－
－
－
－
－
－
－
－
¥1,261

202¥9,674
7,202
－
41
41
2,431
－
192
11,404
10,946
4,453
458
290
－
－
－
－
－
165
827
－
¥21,907

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, 2021 and (b) for the compensation for the fiscal year
ended March 31, 2020 for the payments made or anticipated payments for which the amount became clear during the fiscal year ended March 31, 2021 are stated.
3. The stated amount is the total amount for the fiscal year ended March 31, 2021 and the fiscal year ended March 31, 2020.
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, 2020 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 thatexceed a certain amount, we plan to defer payment over the three-year period from the fiscal year ending March 31, 2022.
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, 2020 by the book value of MHFG's shares (1,369.231 yen per share). For stock compensation and performance-based stock compensation for the fiscal
year ended March 31, 2020, we plan to defer payment over the three-year period from the fiscal year ending March 31, 2022.
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, 2021 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.
Exercise period
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

Fourth Series of stock Acquisition Rights of MHFG

About Mizuho

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.”

Message from theGroup CFO

No.

a
“Subjectdirectors, etc.”

Our strategies forcreating value(Millions of yen, except people)

Foundations for our
corporate value(A) REM1：Compensation Assigned to the Relevant Fiscal Year

Data section(2) Quantitative Disclosure Items

Message from theGroup CEO

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340

Quantitative Disclosure Items

2021/09/08 9:18:36 / 21754589_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory DisclosuresCompensation of Directors and Employees(B) REM2：Special Compensation(Millions of yen, except people)abc“Subject directors, etc.”“Subject employees, etc.”

JPY

－
－

e

Lump sum payments
at the time of recruitment

Bonus guarantees
PeopledPeople－¥－Additional retirement benefits

JPY

－
1

f

People－¥6－9(C) REM3：Deferred Compensation－¥436(Millions of yen)

a

b

c

d

e

Of which, thedeferredcompensation
amount subject
to adjustment orvariation

Regardingcompensation
after allocation,
variable amounts
adjusted but notlinked tovariations for the
relevant fiscal
year

Regardingcompensation
after allocation,
variable amounts
adjusted andlinked tovariations for the
relevant fiscal
year

Amount ofdeferredcompensation
paid in the
relavent fiscal
year

¥21

¥21

¥－

¥－

¥3

301

235

－

39

110

－

－

－

－

－

6,785

120

90

－

3,077

738

273

96

20

141

－

－

－

－

－

¥7,846

¥651

¥187

¥60

¥3,332

Deferredcompensation
amountCashcompensation
amountStockcompensation“Subjectamount or stockdirectors,
based type
etc.”
compensation
amountOther
compensation
amountCashcompensation
amountStockcompensation“Subjectamount or stockemployees,
based type
etc.”
compensation
amountOther
compensation
amountTotal amount

JPY(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.

341

Quantitative Disclosure Items

In addition, we respect various disclosure principles
including fair disclosure. Accordingly, at individual calls,
private meetings or conferences hosted or attended byrepresentatives of Mizuho Financial Group we endeavor tolimit carefully our explanations to matters already disclosed
and facts commonly known.
Should we happen to disclose important information suchas information subject to insider trading regulations and/or
undisclosed financial results that might have a significant
influence on stock prices, we endeavor to 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
or otherwise, we endeavor to investigate their causes andcorrect such misconceptions promptly.

Message from theGroup CEO
About Mizuho
Message from theGroup CFO
Our strategies forcreating value

Beginning with the disclosure required by applicable
domestic and international laws and regulations aswell as stock exchange rules, we endeavor to grasp
properly the types of information desired by the market
and to disclose useful and appropriate information
voluntarily and proactively, in accordance with the socalled Fair Disclosure Rule (“FDR”). Regarding disclosureof information we consider particularly important, we
communicate such information on an ad hoc basis as andwhen necessary, even if a press release has already been
issued, through such means as special briefing sessions.

Foundations for our
corporate value

2. Disclosure Controls and Procedures(1) Establishment and implementation of Disclosure Controls
and Procedures
Our Disclosure Controls and Procedures are establishedto observe applicable domestic and international laws andregulations as well as stock exchange rules and to implement
fair, timely and appropriate corporate disclosure. The
Disclosure Controls and Procedures are the process carriedout by directors, 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 the Preparationof Financial Statements. We have established the basic
principles underlying our Disclosure Controls and Procedures
as well as our internal rules related to Disclosure Controls andProcedures that govern the management framework for theentire Mizuho Financial Group including group companies,
and we endeavor to establish, implement and continuously
improve our Disclosure Controls and Procedures. Our
Disclosure Committee is the Business Policy Committeethat is responsible for discussing and coordinating mattersrelating to Disclosure Controls and Procedures.
(2) Evaluation of effectiveness of Disclosure Controls andProcedures
Our Disclosure Controls and Procedures are documented,
and evaluation of the overall effectiveness of our Disclosure
Controls and Procedures is conducted regularly byreviewing 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 directors and executive officers, as well
as all managers and other employees within Mizuho Financial
Group who engage in financial reporting, accounting or
disclosure. We have also developed the “internal control andaudit hotline”, a system designed for reporting questionableaccounting, internal control, or auditing matters from both
inside and outside Mizuho Financial Group.

laws and regulations as well as stock exchange rules, wefollow 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, as well as providing such information throughthe information distribution systems of domestic andinternational stock exchanges and through press releases.
We also endeavor to disclose other information in a fair,timely and appropriate manner. When we disclose suchinformation, we basically publish on our website theinformation 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, Chief IR Officer, and executives andemployees designated by them. In accordance with ourbasic 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 other matters. In thisway, we aim to earn the trust of the market and obtain an
appropriate market reputation.

Data section

1. Basic principles
We are committed to growing together with our customers
in a stable and sustainable manner and bringing together
our group-wide expertise to contribute to the prosperity of
economies and societies throughout the world as the leading
Japanese financial services group with a global presence
and a broad customer base. For this reason, we place one of
the highest management priorities on continuing to disclose
information to our customers, shareholders, and investors bothin and outside Japan in a fair, timely and appropriate manner,in order that they may form proper judgments and appraisalsof the group. To achieve this aim, we observe applicable
domestic and international laws and regulations as well as
stock exchange rules relating to corporate disclosure, and weestablish and implement appropriate Disclosure Controls andProcedures.

Appendix

Disclosure Policy

3. Disclosure methods, other(1) Disclosure methods
With respect to the information which is required to bedisclosed pursuant to applicable domestic and international

Integrated Report 2021

342

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.