Interim Results for FY2016 November 2016 Important Notice - - PowerPoint PPT Presentation

SLIDE 1

November 2016

Interim Results for FY2016

SLIDE 2

1

Important Notice

This presentation 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 our assets; 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;

• ur ability to implement our Medium-term Business Plan, realize the synergy effects of “One MIZUHO”, and implement other strategic initiatives and measures effectively; the

effectiveness of our operational, legal and other risk management policies; the effect of changes in general economic conditions in Japan 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”), which is available in the Financial Information section of our web page at www.mizuho-fg.com/index.html and also at the SEC’s web site at www.sec.gov. 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. Mizuho Financial Group, Inc. is a specified business company under "Cabinet Office Ordinance on Disclosure of Corporate Information, etc." Article 17-15 clause 2 and prepares the interim consolidated and interim non-consolidated financial statements in the second quarter.

Definitions

FG: Mizuho Financial Group, Inc. BK: Mizuho Bank, Ltd. TB: Mizuho Trust & Banking Co., Ltd. SC: Mizuho Securities Co., Ltd. RBC: Retail & Business Banking Company CIC: Corporate & Institutional Company GCC: Global Corporate Company GMC: Global Markets Company AMC: Asset Management Company Net Income Attributable to FG: Profit Attributable to Owners of Parent 2 Banks: Aggregate figures for BK and TB on a non-consolidated basis (Figures of BK up to 1Q FY2013 are simple aggregate figures of former Mizuho Bank and former Mizuho Corporate Bank before the merger in Jul. 2013) Group aggregated: Aggregate figures for BK, TB, SC, Asset Management One and other major subsidiaries on a non-consolidated basis Company managerial basis: Managerial figure of the respective in-house company (managerial figures based on results of former business units up to FY2015)

Forward-looking Statements

Unless otherwise specified, the financial figures used in this presentation are based on Japanese GAAP This presentation does not constitute a solicitation of an offer for acquisition or an offer for sale of any securities

SLIDE 3

2

Holding Company Trust Banking Securities Other Major Subsidiaries

Trust & Custody Services Bank

Mizuho Financial Group Mizuho Trust & Banking Mizuho Securities Mizuho Bank

Mizuho Private Wealth Management

*1: Also comprised of other departments such as BK Industry Research Dept. and TB Consulting Dept. *2: Top 200 corporations from Forbes Global 2000 (excl. financial institutions)

S&P Moody’s Fitch R&I JCR FG A- A1 A- A+ AA- BK / TB A A1 A- AA- AA

(As of Nov. 14, 2016)

One of the Broadest Customer Bases among Japanese Financial Institutions

Comprehensive Securities Accounts

1.65M

SME Borrowers, etc.

100K

Coverage of Listed Companies in Japan

70%

Forbes Global 200*2 (Non-Japanese Corporate Customers)

80%

Individual Customers

24M Credit Ratings

(Rounded Figures)

Mizuho Group Asset Management Asset Management One Research & Consulting

Mizuho Research Institute Mizuho Information & Research Institute

*1

SLIDE 4

3

• 1. Interim Results for FY2016 – Executive Summary
• Highlights
• P. 5
• Overview of 1H FY2016
• P. 6
• Key Points of the Financial Results
• P. 7
• Impact of the Negative Interest Rate Policy
• P. 8
• Measures Against Effects of Negative Interest Rate Policy
• P. 9
• Non-interest Income from Customer Groups
• P. 10
• Securities Portfolio (Bond)
• P. 11
• Securities Portfolio (Stock)
• P. 12
• Credit Portfolio
• P. 13
• Revised Earnings Plan of FY2016
• P. 14
• Net Business Profits by In-house Company
• P. 15
• 2. Progressive Development of “One MIZUHO”
• Summary of the New Medium-term Business Plan
• P. 17
• Progress Against Financial Targets of
• P. 18

the Medium-term Business Plan

• KPI (Key Performance Indicators)
• P. 19
• League Tables
• P. 20
• Effects of Introduction of the In-house Company System
• P. 21

 Initiatives of Each In-house Company

• Retail & Business Banking Company
• P. 23
• Corporate & Institutional Company
• P. 25
• Global Corporate Company
• P. 27
• Asset Management Company
• P. 29
• Global Markets Company
• P. 31
• Global Products Unit
• P. 32
• Research & Consulting Unit
• P. 33

Contents

 Enhancement of Balance Sheet Control

• Balance Sheet Control Strategies
• P. 35
• Foreign Currency ALM (Liquidity Management)
• P. 37
• Cross-shareholdings Disposal
• P. 38

 Pursue Operational Excellence

• Pursue Operational Excellence
• P. 40
• Initiatives to Reduce Expenses
• P. 41
• Transition to Next-Generation IT Systems
• P. 42
• Responding to FinTech Developments
• P. 43
• Creation of New Business
• P. 44
• Embedding a Corporate Culture that Encourages
• P. 45

Active Participation of Our Workforce  Capital Management

• Capital Management
• P. 47

 Future Direction for Financial Institutions Towards “Society 5.0”

• Financial Institutions in the Near Future
• P. 49
• 3. Interim Financial Results for FY2016
• Overview of Financial Results
• P. 51
• Net Interest Income from Customer Groups
• P. 52
• G&A Expenses
• P. 55
• Overseas Loan Portfolio
• P. 56
• Exposure to Resource Sectors
• P. 57
• 4. Initiatives related to ESG
• Initiatives Related to ESG: Environment
• P. 59
• Initiatives Related to ESG: Society
• P. 60
• Initiatives Related to ESG: Corporate Governance
• P. 61
• Initiatives for Governance System Enhancement
• P. 62

SLIDE 5

4

• 2. Progressive Development of “One MIZUHO”
• 1. Interim Results for FY2016 – Executive Summary
• 3. Interim Financial Results for FY2016
• 4. Initiatives related to ESG

SLIDE 6

5

Highlights

Steady start-up of the Medium-term Business Plan accompanied by results in various areas Net Income Attributable to FG: 59% progress against FY2016 plan

– Penetration of the integrated group strategy based on customer segments under the in-house company system – Development in efforts to improve risk-return and cost-return under in-house company ROE management. Progress shown in balance sheet control through credit risk management and cross-shareholdings disposal, etc. – Promotion of operational excellence with an aim to increase added value in customer services – Net Income Attributable to FG was JPY 358.1Bn marking a 59% progress against the FY2016 plan of JPY 600.0Bn – Consolidated Net Business Profits showed a steady trend marking a 53% progress against the original FY2016 plan (JPY 750.0Bn) supported by market operations appropriately capturing market volatility and an increase in domestic Non-interest Income – Profits associated with the restructuring of SC overseas corporate structure contributed to Net Income Attributable to FG

1 2

The above information includes forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. See “Forward-looking Statements” on P.1 of this presentation

SLIDE 7

6

(JPY Bn)

1H FY2016

YoY

Difference

122.9

42.7 SC (consolidated)*4 131.3

92.6

Major Overseas Subsidiaries (BK)*4 18.1

6.0

Mizuho Credit Guarantee 15.6

2.5

Other subsidiaries & consolidation adjustment

• 42.1
• 58.4

(JPY Bn)

YoY

1,089.6

• 42.1

403.2

• 43.4

750.0 53% 13.5 9.5

• 80.0

60.8

• 53.9

150.0 420.9

• 153.6

810.0 51% 358.1

• 26.0

600.0 59% 122.9 42.7 205.0 131.3 92.6 303.8

• 62.5

595.0 51% 768.1

• 54.8
• 464.3
• 7.7

312.0

• 129.7

545.0 57% 235.2

• 68.7

395.0 59%

1H FY2016

FY2016 Original Plan Progress

Consolidated

Gross Profits Net Business Profits*1 Credit-related Costs

Net Gains (Losses) related to Stocks*2

Ordinary Profits Net Income Attributable to FG

Difference b/w consolidated and 2 Banks*3

SC (Consolidated)*4

2 Banks

(JPY Bn)

Net Income Net Business Profits Gross Profits G&A Expenses

(excl. Non-Recurring Losses)

Ordinary Profits

Differences in Net Income b/w Consolidated and 2 Banks

Overview of 1H FY2016

*1: Consolidated Gross Profits - G&A Expenses (excluding Non-Recurring Losses) + Equity in Income from Investments in Affiliates and certain other consolidation adjustments *2: Including Net Gains related to ETF of JPY 1.7Bn (-JPY 24.6Bn YoY) *3: Net Income Attributable to FG – Net Income of 2 Banks *4: Mizuho Securities USA Inc. became the Major Subsidiary of BK after the establishment of the US Bank Holding Company in Jul. 2016. Net Income of Mizuho Securities USA Inc.: JPY 3.7Bn (Jul. to Sep. 2016). *5: Fully-effective basis

Highlights of 1H FY2016

*3

 Sufficient Common Equity Tier 1 Capital Ratio: 10.99%*5

• Common Equity Tier 1 Capital Ratio excluding Net Unrealized

Gains on Other Securities improved to 9.14%*5

 Net Income Attributable to FG: 59% progress against FY2016 plan

• Credit-related Costs: a reversal of JPY 13.5Bn, below original FY2016 plan
• Although Net Gains (Losses) related to Stocks decreased mainly due to

a decrease in Net Gains related to ETF, net gains secured through steady progress in cross-shareholding disposal

• At SC, investment banking and markets mainly led to steady results.

Tax effects contributed to widen differences in Net Income between Consolidated and 2 banks

 Consolidated Net Business Profits: 53% progress against FY2016 plan

• Decrease in Gross Profits, mainly due to the implementation of the

Negative Interest Rate Policy and JPY appreciation, was offset to some extent by an increase in domestic Non-interest Income and market

• perations appropriately managing market volatility
• Although Consolidated Net Business Profits decreased by

JPY 43.4Bn YoY, it marked a steady 53% progress against the original FY2016 plan

• /w JPY 45.1Bn is intragroup transaction not affecting the consolidated results

The above information includes forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. See “Forward-looking Statements” on P.1 of this presentation

SLIDE 8

7

Impact of the Negative Interest Rate Policy (NIRP)

By striving against the difficult external environment, such as the negative interest rate policy, Consolidated Ordinary Profits recorded JPY 420.9Bn, 120% progress against our 1H target

Steady Progress

Securities Portfolio Non-interest Income Credit-related Costs Growth momentum continues Within Expectations Stable Performance Kept at a low level

Stocks JGBs

1,847.1 1,798.9

• 48.1

15.6 10.3

• Ave. Remaining

Period (yrs) Balance (JPY Bn)

2.5 2.7

(JPY Bn)

Net Gains/Losses related to Bonds JPY 101.5Bn

Loans Market Derivatives Deposits

• JPY 30Bn
• JPY 15Bn

+JPY 20Bn

• JPY 40Bn

Total Annual impact on BK Gross Profits (estimate at the beginning of the fiscal year)

• Compensated the decline

in sales of investment products by capturing large-size transactions utilizing our group integrated strategy

(Consolidated) (2 Banks) 1H FY15 1H FY16

428

Forex

421 10 +13.5

FY16 Plan

Original Plan Revised Plan

• 60.0
• 80.0

(Group aggregated)

Key Points of the Financial Results

• JPY 15Bn

Impact on our 1H results was slightly less than 50% of fiscal year estimate

• Impact on profits due to the

appreciation of Japanese Yen was approximately JPY 10Bn

YoY increase, after excluding the impact of changes in exchange rates

(1H FY16) Net Gains/Losses related to Stocks JPY 60.8Bn (1H FY16)

Appropriate market operation adjusting to market volatility

• Mar. 16
• Sep. 16
• Mar. 16
• Sep. 16

Balance (JPY Tn)

(JPY Bn) (Consolidated) 1H FY16

Maintained a resilient balance sheet

• Recorded a reversal,

due to of our prudent forward-looking

• management. There was no

large credit cost either inside

• r outside Japan
• Revised the fiscal year plan,

considering the 1H result

The above information includes forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. See “Forward-looking Statements” on P.1 of this presentation

SLIDE 9

8

(Reference) Breakdown of JPY Loans and Deposits

Impact of the Negative Interest Rate Policy (NIRP)

Floating Short-term prime-rate Fixed, etc. Corporate etc. Individual Loans

Loans

Corporate Individual Liquid Deposits Time Deposits Time Deposits Liquid Deposits NCDs

Deposits

Negative Interest Policy Impact for FY2016: approx. -JPY 40Bn

1H FY16 Results: less than 1/2 of fiscal year estimate

Domestic Loans

(excl. loans to the Japanese Government , etc.)

JPY 48Tn

JGBs

(Other Securities and Bonds Held to Maturity)

JPY 18Tn

Current Account at Bank of Japan

JPY 25Tn

Domestic Deposits

JPY 85Tn

Others

(Mar. 2016) Decrease in Loan Margin

• JPY 30Bn

Decrease in Market Related Investment Return

• JPY 15Bn

The outstanding balance mainly consists

• f Basic Balance

(with +0.1% interest)

Decrease in Deposit Funding Cost

+JPY 20Bn

Decrease in Non-interest Income

(e.g. derivative transactions)

• JPY 15Bn

(Mar. 2016)

Impact of Negative Interest Rates

BK, managerial accounting, rounded figures

Expected impact of the negative interest rate policy to be JPY 40Bn for FY2016 1H results were less than 1/2 of the fiscal year estimate

Impact

BK, Markets Unit managerial basis

The above information includes forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. See “Forward-looking Statements” on P.1 of this presentation

SLIDE 10

9

Measures Against Effects of Negative Interest Rate Policy (NIRP)

Assets Liabilities Net Assets

Investment Securities Retirement Benefit Liability Cash/ Deposits, etc. Borrowings/ Corporate Bonds Accumulated Other Comprehensive Income Fixed Assets Cash/Deposits Individual Loans Investment Products Individuals Corporates

• Ultra-long term funding
• Subordinated funding

Review of funding method BK TB Reconsider Pension Strategy

• Review pension asset management
• Change of corporate pension plan

BK TB Review Capital Strategy

• Returns to shareholders taking into

consideration the Corporate Governance Code

BK TB SC Low Interest Rate and Pursuit of Convenience

• Digital Channels
• New type of borrowing utilizing FinTech

BK

• Low risk type investment
• Cross-border M&A
• Return to shareholders

Efficiently Use Surplus Funds BK TB SC AM*

• Cross-shareholdings disposal

Respond to Market Fluctuation Risk BK TB SC

• Low risk investment products
• Investment products according to risk appetite

Low Risk Type Investment BK TB SC AM*

“shift from savings to investment/asset building ”

• Carve out non-profitable operations
• Review real estate portfolio

Pursuit of Capital Efficiency BK TB SC

Create new business opportunities through the integration of bank, trust, securities and asset management functions as a Financial Services Consulting Group

Measures

Total Debt Restructuring

SC

* Asset Management

SLIDE 11

10

84 93 99 60 64 62 84 110 96 149 161 164 377 428 421 1H FY14 1H FY15 1H FY16 Banking (Japan) Banking (Overseas) Trust/Asset Management Related Securities Related 9 17 6 67 69 71 32 32 23 41 43 64 149 161 164 1H FY14 1H FY15 1H FY16 190 190 130 130 200 230 340 340 860 890 FY14 FY15

*1

• JPY 7Bn

(excl. impact of changes in exchange rate JPY +3Bn)

BK Domestic Non-interest Income

Non-interest Income from Customer Groups

(JPY Bn) *2

Non-interest Income

Group aggregated, managerial accounting, rounded figures (JPY Bn) BK, managerial accounting, rounded figures Figures in ( ) represent YoY

Others Settlement & Foreign Exchange Investment Trust & Annuities Solution Business-related

Syndicated Loans: JPY 23Bn (+9Bn) Investment Banking related: JPY 22Bn (+6Bn) Securities-related Fees: JPY 9Bn (+2Bn) Investment Trusts: JPY 9Bn (-7Bn) Individual Annuities: JPY 14Bn (-2Bn) Settlement: JPY 35Bn (+0Bn) Foreign Exchange: JPY 37Bn (+2Bn)

Annual Results Investment Products

2 Banks (left) SC (right) (JPY Tn)

*3 *4

*1: Due to the changes in managerial accounting, the figures are recalculated. The original figures before the recalculation that changed were FY14 : total JPY 870Bn, Trust / Asset Management Related JPY 120Bn, Securities Related JPY 210Bn. FY15: total JPY 910Bn, Securities Related JPY 210Bn. Other figures are unchanged. *2: Due to the changes in managerial accounting, the figures are recalculated. The original figures before the recalculation that changed were 1H FY14: Solution Business-related JPY 42Bn, others JPY 11Bn, 1H FY15: others JPY 20Bn. Other figures are unchanged. *3: Retail & Business Banking Division *4: Total of Individual Annuities, investment Trusts (excl. MMF) and foreign currency deposits

0.49 0.55 0.49 0.34 0.27 0.61 0.63 0.67 0.33 25.8 27.0 26.6 1H FY14 1H FY15 1H FY16

Amount of Equity Investment Trusts Sold Amount of Japanese Bonds Sold Amount of Foreign Bonds Sold Assets Under Management

0.50 0.41 0.18 0.26 0.30 0.23 5.61 5.75 5.63 1H FY14 1H FY15 1H FY16

Amount of Individual Annuities Sold Amount of Investment Trusts Sold (excl. MMF) Balance of Investment Products

SLIDE 12

11

15.4 13.8 14.4 8.3 1.1 0.7 0.6 0.6 5.2 2.6 0.5 1.3 21.8 17.2 15.6 10.3 2.4yrs 2.6yrs 2.5yrs 2.7yrs

• Mar. 14
• Mar. 15
• Mar. 16
• Sep. 16

Treasury Discount Bills Floating-rate Notes Medium & Long-term Bonds

• Ave. Remaining Period
• Mar. 14
• Mar. 15
• Mar. 16
• Sep. 16

Japanese Stocks 1,108.2 2,132.1 1,603.9 1,429.8 Japanese Bonds 31.3 44.1 136.5 88.3 Other

• 49.3

303.0 114.7 113.7 Total 1,090.2 2,479.3 1,855.1 1,631.9 Nikkei 225 (JPY) 14,694 19,197 16,897 16,737 JGB 10Y 0.64% 0.40%

• 0.05%
• 0.08%

USTB 10Y 2.72% 1.94% 1.78% 1.60% 33.9 75.8 142.6 101.5 FY13 FY14 FY15 1H FY16

Unrealized Gains/Losses on Other Securities

JGB Portfolio

*1: Other Securities which have readily determinable fair values *2: The base amount to be recorded directly to Net Assets after tax and other necessary adjustments *3: Based on the quoted average market price of the respective month for Japanese stocks and Nikkei 225. For others, calculated based on the quoted market price if available, or other reasonable value, at the respective period end *4: Foreign government bonds, fund investments, and securitization products, etc. *5: Including bonds with remaining period of one year or less *6: Excluding floating-rate notes *7: Determined at reasonably calculated prices

Securities Portfolio (Bond)

Consolidated

(JPY Bn)

*4 *5 *6

Unrealized Gains/Losses*2 *3

• /w Floating-rate Notes*7

JPY 13.3Bn

JPY 3.2Bn JPY 0.7Bn

JPY 95.8Bn

JPY 5.0Bn 2 Banks, acquisition cost basis

JPY 53.9Bn

JPY 6.0Bn 2 Banks, acquisition cost basis *1 *1 *2 *3

(JPY Bn) (JPY Tn)

Net Gains/Losses related to Bonds

(Reference) Foreign Bond Portfolio

JPY 22.5Bn

*1

• Mar. 14
• Mar. 15
• Mar. 16
• Sep. 16

Foreign Bonds (JPY Tn) 9.1 9.7 9.4 8.6 Unrealized Gains/Losses (JPY Bn)

• 170.2

38.3 38.2 45.4

2 Banks

SLIDE 13

12

FY13 FY14 FY15 1H FY16

• 1.7
• 0.6
• 9.0
• 1.2

57.6 96.1 181.4 65.3 2,003.8 1,962.9 1,847.1 1,798.9

• Mar. 14
• Mar. 15
• Mar. 16
• Sep. 16

Reduce JPY 550.0Bn by Mar. 2019 (from Mar. 2015 balance) (Reduce approx. JPY 250Bn by Mar. 2017)

Unrealized Gains/Losses on Japanese Stocks Disposing of Cross-shareholdings

Japanese Stock Portfolio

Securities Portfolio (Stock)

*1: Other Securities which have readily determinable fair values (the base amounts to be recorded directly to Net Assets after tax and other necessary adjustments). Based on the average market price of the respective month *2: Other Securities which have readily determinable fair values *3: Managerial basis (BK, TB and SC) Consolidated, acquisition cost basis 2 Banks *2 Consolidated *1

Net Gains/Losses related to Stocks

• JPY 163.9Bn

Consolidated

Impairment

• f Stocks

Med-term Business Plan

• Mar. 14
• Mar. 15
• Mar. 16
• Sep. 16

Japanese Stocks (JPY Bn) 1,108.2 2,132.1 1,603.9 1,429.8 Nikkei 225 (JPY) 14,694 19,197 16,897 16,737

Disposed Amount in 1H FY16 (Amount Sold)*3

(JPY 47.9Bn) JPY 48.1Bn (JPY Bn) (JPY Bn)

SLIDE 14

13

• 7.8

<0bps>

• 26.7

<3bps> +116.6 <reversal>

• 0.4

<0bps> +9.4 <reversal> 3 6 9

Global average Mizuho average

1.21% 1.20% 1.00% 0.98% 0.5 1 1.5 2

• Mar. 14
• Mar. 15
• Mar. 16
• Sep. 16

0.9 1.0 0.8 0.7

Claims with Collection Risk Claims for Special Attention Claims against Bankrupt and Substantially Bankrupt Obligors Net NPL Ratio

FY13 FY14 FY15 1H FY15 1H FY16

Expenses related to Portfolio Problems

• 18.1
• 82.4
• 44.6
• 12.0
• 15.8

Reversal of (Provision for) General Reserve for Possible Losses on Loans

‐ ‐ 0.8 ‐ 8.6

Gains on Reversal of Reserves for Possible Losses on Loans, and others

134.8 74.5 17.0 11.5 16.5

Credit-related Costs Disclosed Claims under the Financial Reconstruction Act

Credit Portfolio

Figures in < > represent Credit-related Costs Ratio *1 *1: Ratio of Credit-related Costs (annualized) against Total Claims (period-end balance, based on the Financial Reconstruction Act) 2 Banks, banking account + trust account

(JPY Bn)

FY13 FY14 FY15 1H FY16 1H FY15

(Reference) EDF by Moody’s Analytics*2

Other Watch Obligors *2: EDF: Expected Default Frequency (measure of the probability that a firm will default calculated by Moody’s Analytics based on stock price and financial data) Average (no. of firms basis) of whole global listed companies and Mizuho’s Japanese and non-Japanese listed customers based on data provided by Moody’s Analytics Resource related is an aggregate of mining, oil refining and oil, gas & coal exploration/production (%)

Showing the soundness of Mizuho’s credit portfolio

Probability of Default

low 2 Banks, banking account 2 Banks, banking account + trust account

Balance (JPY Tn) 2.6 1.5 1.6 1.5 Reserve Ratio 6.34% 3.72% 3.66% 3.56%

(JPY Tn)

17/10/10 10時31分

SLIDE 15

14

Consolidated (JPY Bn)

1H FY2016 Results vs Original Plan

Consolidated Net Business Profits

852.8 403.2

730.0

• 20.0

Credit-related Costs

• 30.4

13.5

• 60.0

+20.0

Net Gains (Losses) related to Stocks

205.6 60.8

150.0

• Ordinary Profits

997.5 420.9

770.0

• 40.0

Net Income Attributable to FG

670.9 358.1

600.0

• Difference in Net Income b/w

Consolidated and 2 Banks

140.2 122.9

220.0

+15.0

2 Banks (JPY Bn)

1H FY2016 Results vs Original Plan

Net Business Profits

688.4 303.8

575.0

• 20.0

Credit-related Costs

• 26.7

9.4

• 55.0

+15.0

Net Gains (Losses) related to Stocks

181.4 65.3

130.0

+5.0

Ordinary Profits

762.9 312.0

525.0

• 20.0

Net Income

530.6 235.2

380.0

• 15.0

FY2015 Results

FY2016 Revised Plan

FY2015 Results

FY2016 Revised Plan

Item Original Earnings Plan Revised Earnings Plan O/N Rate

• 0.1%
• 0.1%

3M TIBOR 0.05% 0.05% 10Y JGB 0.08%

• 0.15%

Nikkei 225 JPY 17,000 JPY 16,000 Foreign Exchange Rate (USD/JPY) JPY 115 JPY 102

Assumptions of Earnings Plan

Revised Earnings Plan of FY2016

*1: Consolidated Gross Profits - G&A Expenses (excluding Non-Recurring Losses) + Equity in Income from Investments in Affiliates and certain other consolidation adjustments *2: Net Income Attributable to FG – Net Income of 2 Banks

Common Stock: JPY 7.5 per share (dividend payout ratio: 31.6%) (interim cash dividend payments: JPY 3.75)

Annual Cash Dividends for FY2016 (Estimates)

Net Income Attributable to FG for FY2016: Estimated Figure

*1 *2

The above information includes forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. See “Forward-looking Statements” on P.1 of this presentation

SLIDE 16

15

Retail & Business Banking Company 16.0 87.0

• 28.0

10.0

• 4.0

67.0

• 14.0
• 14.0

Corporate & Institutional Company 253.0 276.0 130.0 142.0 238.0 261.0 +8.0 +8.0 Global Corporate Company 170.0 192.0 77.0 83.0 163.0 182.0 +12.0 +13.0 Global Markets Company 398.0 428.0 240.0 255.0 335.0 365.0 +16.0 +16.0 Asset Management Company 22.0 22.0 9.0 9.0 19.0 19.0

• 1.0
• 1.0

Total of In-house Companies 859.0 1,005.0 429.0 499.0 752.0 893.0 +22.0 +21.0 Consolidated Net Business Profits 853.0

• 403.0
• 730.0
• 20.0
• FY2015 Results

FY2016 Revised Plan (JPY Bn)

Before head

• ffice expense

deduction Before head

• ffice expense

deduction Before head

• ffice expense

deduction Before head

• ffice expense

deduction

1H FY16 Results vs Original Plan

Net Business Profits by In-house Company

Net Business Profits by In-house Company

Rounded figures, group aggregated, managerial accounting

*

* Consolidated Gross Profits - G&A Expenses (excluding Non-Recurring Losses) + Equity in Income from Investments in Affiliates and certain other consolidation adjustments

The above information includes forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. See “Forward-looking Statements” on P.1 of this presentation

SLIDE 17

16

• 2. Progressive Development of “One MIZUHO”
• 1. Interim Results for FY2016 – Executive Summary
• 3. Interim Financial Results for FY2016
• 4. Initiatives related to ESG

The following section of this presentation includes forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. See “Forward-looking Statements” on P.1

SLIDE 18

17

Summary of the New Medium-term Business Plan

Financial Services Consulting Group

• The most trusted partner in solving problems and supporting the sustainable growth of customers and communities -

Mizuho’s Objectives

10 Basic Strategies Business Strategies Financial Strategies Management Foundations Promoting the “Area One MIZUHO” strategy Strengthening our non-interest income business focused model on a global basis Responding to FinTech Strengthening our research & consulting functions Responding to the shift from savings to investment Controlling the balance sheet strategically and reforming the cost structure Completing implementation of the next generation IT system Fundamental reforms of HR management

Continued initiatives towards embedding a corporate culture to support a stronger organization

Disposing of cross-shareholdings Selecting and focusing business areas Establishment of a resilient financial base Proactive involvement in financial innovation Introduction of the in-house company system 5 Basic Policies

Embedding a corporate culture that encourages the active participation of

• ur workforce to support

a stronger Mizuho 1 2 3 4 5 6 7 8 9 10 Fully Implement the Customer First Principle

(Customer-Focused)

Pursue Operational Excellence

SLIDE 19

18

1,962.9 1,798.9

• Mar. 15
• Sep. 16
• Mar. 17
• Mar. 19

Financial Targets for FY2018

CET1 Capital Ratio*1

• Approx. 10%

< 9.14% > Consolidated ROE*2

• Approx. 8%

< 10.2% > Group Expense Ratio*3

• Approx. 60%

Excluding expenses related to the next-generation IT Systems, etc.: high 50% level FY20: aim for the mid 50% range Cross-shareholdings Reduction Amount JPY 550Bn*4 RORA

(Net Income Attributable to Owners of FG)

• Approx. 0.9%

< 1.1% >

Progress Against the Major Financial Targets

CET1 Capital Ratio Cross-shareholding Disposal Proportion of Non-interest Income

54%

46% 1H FY16 FY18 Approx.60% FY15 54% 46%

Non- interest Income

55% 60% 65%

< > 1H FY16 Results (JPY Bn) Expense Ratio 62.1% 60.0%

Reduction Amount

JPY 550Bn

Progress Against Financial Targets of the Medium-term Business Plan

*1: Basel 3 fully-effective basis (based on current regulations), excluding Net Unrealized Gains on Other Securities *2: Excluding Net Unrealized Gains on Other Securities *3: Group aggregated *4: Shares listed on Japanese stock market, acquisition cost basis, cumulative amount from FY15 to FY18 (Excluding Net Unrealized Gains on Other Securities )

8.77%

• Mar. 16
• Sep. 16
• Mar. 19

9.14% Approx. 10%

• JPY 163.9Bn

Net Interest Income

Non- interest Income Net Interest Income FY15 1H FY16 FY18 Approx. 60% level

Reduction Amount Approx.

JPY 250Bn

The above information includes forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. See “Forward-looking Statements” on P.1 of this presentation

SLIDE 20

19

35

35

45

• Mar. 16
• Sep. 16
• Mar. 19

FY15 1H FY16 FY18

• Mar. 16
• Sep. 16
• Mar. 19

FY15 1H FY16 FY18 FY15 1H FY16 FY18 FY15 1H FY16 FY18 FY15 1H FY16 FY18 Business Promotion to Investors Shift from Savings to Investment/ Asset Building Strengthen Ancillary Transactions One MIZUHO Strategy

KPI (Key Performance Indicators)

No.10 or above Balance Sheet Control

RBC CIC CIC

+10%*4

RBC CIC GCC

0.8 1.2 300

BK, managerial accounting Group aggregate, GCC managerial basis, rounded figures Net increase in publicly offered equity investment trusts (excl. ETFs), rounded figures GMC managerial accounting, rounded figures Underwriting amount basis Underwriting amount basis

GCC GCC AMC GMC

No.3 M&A*2 ECM*3

Foreign Currency-denominated Customer Deposits

U.S.DCM*7 Sales & Trading Profits No.2 Shift from Savings to Investment/ Asset Building

RBC

RBC managerial basis, rounded figures

JPY 10Tn

*1: Aggregate of individual and corporate customers *2: Source: Thomson Reuters (Any Japanese involvement, excl. real estate deals) *3: Source: Thomson Reuters (Total Domestic and Cross-border Equities). Deals including initial public offering, public offering, convertible bonds and REITs *4: Foreign currency-denominated customer deposits, planned amount versus Mar. 16 estimate *5: Excl. Commitment Fees and Guarantee Fees, etc. *6: Progress versus FY16 plan *7: Source: Dealogic. Bonds with issuance amount of USD 250M and above issued by investment grade U.S. corporations *8: FY15 and 1H FY16: Simple aggregate figures for Mizuho Asset Management, DIAM and Shinko Asset Management, FY18: Planned figure for Asset Management One

1.4

(JPY Tn) (USD Bn) (JPY Tn)

+25%

(JPY Bn)

No.3

+30%

0.7

No.9

No.9 0.3

JPY 0.4Tn

180

One MIZUHO Strategy One MIZUHO Strategy

• Mar. 16

estimate

180.5

168.5

Progress 47%*6 Progress 58%*6 Progress 32%*6

(USD Bn)

Overseas Non-interest Income*5 Balance of Investment Products*1 Publicly Offered Investment Trusts*8

Large Corporations SMEs and Middle market Corporations No.1 among the three Japanese mega-banks No.1 No.5 or above

FY18 1H FY16

No.1 among the three Japanese mega-banks (No. of deals)

• No. of deals:

No.1 Amount: No.1

The above information includes forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. See “Forward-looking Statements” on P.1 of this presentation

SLIDE 21

20

Rank Company Name U/W Amount (USD M) Market Share (%)

1 JPMorgan

58,120 12.7

2 Bank of America Merrill Lynch

54,130 11.9

3 Citi

40,495 8.9

4 Goldman Sachs

36,804 8.1

5 Wells Fargo Securities

32,007 7.0

6 Barclays

28,587 6.3

7 Deutsche Bank

27,490 6.0

8 Morgan Stanley

25,905 5.7

9

Mizuho Financial Group 18,889 4.1

10 HSBC

16,250 3.6

Rank Company Name Amount (USD M) Market Share (%)

1 Bank of America Merrill Lynch

234,679 9.1

2 JPMorgan

215,555 8.4

3 Citi

155,039 6.0

4 Wells Fargo & Co

139,296 5.4

5

Mizuho Financial Group 130,013 5.0

6 Mitsubishi UFJ FG

116,634 4.5

7 Barclays

81,619 3.2

8 Deutsche Bank

78,456 3.0

9 Sumitomo Mitsui FG

72,660 2.8

10 BNP Paribas SA

64,381 2.5

Rank Company Name Amount (JPY Bn) Deals

1

Mizuho Financial Group 5,178.6 107

2 Nomura Securities

1,806.1 60

3 Sumitomo Mitsui FG

1,503.8 55

4 Daiwa Securities Group

1,265.7 35

5 Plutus Consulting

257.4 26

Rank Company Name Amount (JPY Bn) Market Share (%)

1

Mizuho Financial Group 5,981.4 46.9

2 Sumitomo Mitsui FG

2,914.2 22.8

3 Mitsubishi UFJ FG

2,494.4 19.5

4 Sumitomo Mitsui Trust Holdings

179.5 1.4

5 Development Bank of Japan

110.0 0.9

Rank Company Name U/W Amount (JPY Bn) Market Share (%)

1

Mizuho Securities 1,820.1 20.9

2 Mitsubishi UFJ Morgan Stanley Securities

1,697.8 19.5

3 Nomura Securities

1,553.9 17.9

4 SMBC Nikko Securities

1,548.6 17.8

5 Daiwa Securities

1,336.7 15.4

Rank Company Name U/W Amount (JPY Bn) Market Share (%)

1 Nomura Securities

321.7 25.1

2 Sumitomo Mitsui FG

230.3 18.0

3

Mizuho Financial Group 194.2 15.2

4 Morgan Stanley

182.6 14.3

5 Daiwa Securities Group

134.3 10.5

Global Syndicated Loans*4 M&A Advisory (Japan Corporations)*3

League Tables

Publicly-offered Bonds (Japan)*2 Syndicated Loans (Japan)*1

*1: Apr.16 - Sep.16. bookrunner basis Source: Prepared by BK based on data from Thomson Reuters

U.S. Debt Capital Market (DCM)*5 Total Domestic and Cross-border Equities*6

*2: Apr.16 - Sep.16, deals including Straight bonds, Investment Corporation bonds, Municipal bonds (lead manager method only), Samurai bonds, Preferred securities and excluding self-led bonds. Source: Prepared by SC based on data from I-N Information Systems *3: Apr.16 – Sep.16, including publicly-disclosed deals involving Japanese corporations and deals where the parent company is a Japanese corporation, excluding real estate deals Source: Prepared by SC based on data from Thomson Reuters *6: Apr.16- Sep.16, deals including Initial public offerings, Public offerings, Convertible bonds and REITs. Source: Prepared by SC based on data from Thomson Reuters *4: Jan.16 - Sep.16, Global Loan (R1), bookrunner basis Source: Thomson Reuters *5: Jan.16 - Sep.16, bonds issued by investment grade U.S. corporations, bookrunner basis Source: Dealogic

SLIDE 22

21

Full-fledged introduction of the customer segment based in-house company system allows quick and flexible execution of strategies

Introduction

• f the In-house

Company System

Effects of Introduction of the In-house Company System

Execution of strategies beyond boundaries among legal entities led by the holding company (Heads of In-house Companies)

1

Accelerated decision-making processes through delegation of authority to Heads of In-house Companies

2

Strengthened initiatives to improve risk-return and cost-return through the introduction of in-house company ROE

3

Robust Non-interest Income Efficient Risk- weighted Assets Management based on ROE Maintain Sound Loan Portfolio Consistent Market Operations Forward-looking ALM Cross-shareholding Disposal

from P. 23 to 33

• P. 35, 36

P.13

• P. 31

P.37

• P. 35, 36

Effects of Transition to the In-house Company System

Steady progress toward the establishment of a resilient financial structure

Cost Reduction and FinTech

• P. 38
• P. 41

P.43

Operational Excellence Balance Sheet Control Balance Sheet Control Balance Sheet Control Balance Sheet Control Strengthened Profitability Strengthened Profitability Strengthened Profitability Strengthened Profitability

Progress in 1H FY2016

SLIDE 23

22

Initiatives of Each In-house Company

SLIDE 24

23

80 100 120 140 160 180 1,800 2,000 2,200 2,400 2,600

• Sep. 15
• Mar. 16
• Sep. 16

1 2 3

• Sep. 15
• Mar. 16
• Sep. 16

Retail & Business Banking Company

Support the trend of “shift from savings to investment/asset building” through highly specialized consultation services of banking, trust and securities functions

Shift from Savings to Investment

*1: Aggregate figures for BK, TB and SC, RBC managerial basis *2: individuals, RBC managerial basis

Strengthen initiatives related to shift from savings to investment / asset building

Initiatives regarding fiduciary duty (FD) Balance of banking and securities collaborated investment products*2

• No. of investment customers *1

(K) (JPY Tn) No..of banking and securities collaborated customers (right axis)

JPY 2.8Tn

BK TB SC

Group-wide integrated proposal

Branches Products

Further progress in the joint branch model

Transform all branches into joint banking, trust and securities branches with a target timeline of 2 years (incl. remote channel)

HR

Optimize the allocation of HR on a group basis

HR seconded from BK Develop and increase talents with a high level

• f expertise

Develop and increase talents with a high level

• f expertise

Build a group-wide products provision framework

Promote sales collaboration in line with the role of each entity  Customers of one company are customers of the entire Mizuho group Wide range of product

• ffering from not only inside

but also outside the group Increased collaboration with Asset Management One <Trust banking products>

Trust agency business

Provide expertise mainly in succession and real estate Improved customer base Discover potential needs and foster core/upper customer segments Provide highly specialized consultation mainly in investments

“Area One MIZUHO” promotion project

Disclosed handling fees for life insurance (specified insurance contracts) Voluntary disclosed fees Mizuho receives from insurance companies to allow customers to make further appropriate decisions upon contract Appropriate framework for performance measurement Developed an appropriate framework for performance measurement to value initiatives that truly address the needs and interests of our customers Banking, trust and securities branches in the same “area” jointly provide financial services consulting in the region Promote area based strategies based on the characteristics of the region Each area autonomously plans and executes integrated strategy among banking, trust and securities functions in the “area” <Securities products>

Branch and assist intermediary services

• Feb. 2016: Announced the Policies Regarding Mizuho’s FD

Established a product sales system which truly address the needs and interests of customers

SLIDE 25

24

Rank Company Name

Deals

Market Share

1 Mizuho Securities 9 22% 1 Daiwa Securities 9 22% 3 Nomura Securities 8 20% 3

SMBC Nikko Securities

8 20% 5 SBI Securities 5 12% 2 4 6 8 1H FY15 1H FY16 10 20 30 40 50 1H FY15 1H FY16

Further address needs for overseas business expansion and M&A for business expansion following the business strategy of customers

*1: No. of SME M&As (RBC customers only) *2: Profits from BK and TB collaboration profits (RBC customers only) *3: Apr.2016 to Sep. 2016 Source: Prepared by SC based on data from CAPITAL EYE, excluding REIT and global offerings *4: Apr.2016 to Sep. 2016 based on disclosure materials of each company, excluding REIT, ETF and PRO MARKET

Retail & Business Banking Company

Support business origination and expansion of innovative companies and strengthen business matching service as well as prospect for addressing future IPO related needs

Further development of the integrated support of growth strategies for both SMEs and their owners starting with consulting

Supporting Growth Strategies

Support smooth succession by providing highly specialized business and asset succession consultation Address real estate transactions and business divestiture needs during business and asset succession Also address M&A and IPO needs of succession to person outside of the owner’s family Solve customers’ financial challenges related to their financial results and

• ther issues such as real estate due to high prices of the real estate or

revision in tax laws, etc.

Support growth strategies by discovering potential needs Strengthen support toward innovative companies

Provide risk money to innovative companies through funds

(JPY Bn) (No. of deals)

JPY 6.6Bn 48

Address needs through business strategy discussions Strengthen business/asset succession consulting capabilities Promote financial consulting Expansion of membership services for IPO support Funding support through growth support funds

Funding Education Mentor Business Develop- ment From seed to middle stages Supporting Companies Mentor Venture Capital Mizuho Group Companies

Innovative Companies Eco-system Supporters

• No. of IPO arranger*3
• No. of IPO stock transfer agent*4
• No. of SME M&A deals*1

Rank Company Name

Deals

Market Share

1 Mizuho Trust & Banking 13 39% 2 Sumitomo Mitsui Trust Bank 12 36% 3 Mitsubishi UFJ Trust and Banking 8 24%

Real estate related profits*2

SLIDE 26

25

Improve pension system

(Implementation of the third structure of pension, DC, etc.)

Dispose of real estate and securities, etc.

事例を出す

Corporate & Institutional Company

Pursue profit maximization through creating a chain reaction of profit opportunities (value chain business)

Value Chain Business

Value chain in M&A

Business strategy discussions BK M&A advisory SC

クロボM&A Cross-border M&A

(incl. restructuring / carveouts)

Currency swaps BK Acquisition finance DCM ECM

↓ Distribution to investors SC

PMI* BK

A B E C BK D F

Thoroughly pursue value chain business through demonstrating industry leading financial services consulting functions

Pension Assets Projected Benefit Obligation (PBO) Unfunded

• bligations

Decrease in return Decrease in discount rate → increase in PBO

Corporate finance challenges

－Decrease in Net Income －Decrease in Capital －Additional funding needs

Increase in unfunded obligations

Financial strategy discussions Review asset management Address unfunded

• bligations

Improve Net Income BK TB

Review investment products Open retirement benefit trusts

Initiative using corporate pension as an opportunity

* Post Merger Integration

SLIDE 27

26

400 500 600 700 800 Mar.14 Mar.15 Mar.16 Sep.16

200 companies 18 employees

事例を出す

Corporate & Institutional Company

Achievement of initiatives to capture business opportunity considering the changes in the external environment such as negative interest rates and Corporate Governance (CG) Code implementation

Respond to changes in the environment

Hybrid Finance (HBF)

– Achieve a good balance between ROE and external ratings – Make the financial strategies flexible – Funding at a low interest rate

Global Offering

Total Debt Restructuring Issuers' needs – Difficulty in fund management under the negative interest environment – Expanding range of investors – Spreading HBF Investor’s environmental changes

Acquired highly profitable transactions which secured margins and related ancillary transactions mainly from companies with high credit ratings

Expertise as the market leader

Historical Trends in Hybrid Finance Balance

(JPY Bn)

BK Note: Hybrid Loans for industrial corporations and privately placed Hybrid Securities

13 companies (10.7% of the issued stocks)

Existing shareholders

Sales of stocks held Respond to the CG Code

• Avoid impact on share

prices

• Expand the range of

shareholders

Global Offering

200 companies 19 employees

SC Investor Coverage

Europe/ Middle East Asia Japan North America

Organize strong sales structure which fully cover the major investors in each region

Upper row : No. of investors (rounded figures) Lower row : No. of sales personnel

Largely contributed to raise the presence of SC among Overseas ECM

Co-Global Coordinator

Active Bookrunner both in and

• utside Japan

Gained top class

• rder amount in

Overseas Tranche*

*: Comparing the total order amount gathered by each securities company

JPY 719.0Bn

300 companies 86 employees 500 companies 41 employees

New Shareholders

Domestic and global institutional investors / individual investors

(As of Oct. 1, 2016)

SLIDE 28

27

1,123 1,154 654 3.60% 3.31% 3.31% FY14 FY15 1H FY16 590 Buyer 2 Anheuser-Busch InBev Consumer 4 Charter Communications TMT 6 Dell TMT 7 Energy Transfer Equity Energy 8 HJ Heinz Consumer 9 Anthem Healthcare 10 Cheung Kong Conglomerate 11 Teva Healthcare 13 Avago Technologies TMT 15 Shire Healthcare 16 Aetna Healthcare 19 MPLX Energy GTB Singapore (HO) GTB (LDN) GTB (NY) GTB (China)

GTB (Tokyo) GTB

(HK) RORA Gross Profits *1: BK (including banking subsidiaries), GCC managerial basis including synergy effects with securities functions, etc. *2: 2015, Source: prepared by GCC based on data from Dealogic

Global 300 Profitability

(USD M)

Advisory & Solutions Business Promotion Continue and expand the strategy focusing on blue-chip non-Japanese Companies Expand non-interest income through advisory & solutions business promotion utilizing group capabilities

Global Corporate Company

Overseas Business

Major M&A Deal Participation

*1 Close Relationship with Top Management High Credit Profile Expansion of Transaction Types

Long term Commitment through Sharing of Business Strategy

Over 250 Approx. 300

FY2018 FY2015

• No. of Company Groups

Super 30/50 Global 300

*2

Further Promote Sector Based Approach Strengthening Transaction Banking Business Began one stop business promotion on a global basis

• Placed key personnel to promote transaction banking in HO as

well as each regional office of Global Transaction Banking Department (“GTB”, HO: Singapore)

• Strengthened product development such as supply chain

finance

1H FY16 Gross Profits increased YoY Participated in 12 of top 20 deals

Bookrunner

Global 300 Strategy

Focus on sectors undergoing reorganization through M&A

Media & Telecom Health care Consumer Focused Sectors

Global expansion of team supporting advisory & solutions business promotion

• Each regional team supports the promotion of advisory & solution

services based on the business/financial strategies of the respective customers

SLIDE 29

28

10 15 20 5 10 15 20 5

Expanded non-interest income and customer base, after acquiring North American loan portfolio as well as personnel from RBS, promoting the integrated management of banking, trust and securities functions

U.S. Business

Advancement in Capital Markets League Table Establishment of Bank Holding Company (BHC)

Effectively promoting in-house company system as a group

Impact of acquiring the N. American loan portfolio from RBS

Number of Top Tier Customers

50 100 Before RBS After RBS

Strengthened Solution Providing Capabilities

Remarkable Transaction with Global 300 customer

July 2016 USD 6,150,000,000 Senior Notes Active Bookrunner

• First time to be mandated as active bookrunner

for Verizon (BoAML, DB, GS, Mizuho)

• Won the transaction by demonstrating Mizuho’s

strong capability in DCM, on top of the strengthened relationship (uptier) after the RBS transaction

• By leveraging this transaction, Mizuho subsequently

participated in the initial securitization transaction for Verizon which followed Transition in the DCM League Table Transition in the ECM League Table

FG BK

GCC GMC AMC GPU U.S. branch

• f BK

Operation in the U.S.

U.S. subsidiary of BK U.S. subsidiary of TB U.S. subsidiary of SC

BHC

Mizuho MUFG SMFG

9th

US Banks

2014 2015 2016 (Jan.-Sep.) 2014 2015 2016 (Jan.-Sep.)

US Banks Mizuho MUFG SMFG

12th

Investment Grade, Bookrunner basis Source: Dealogic

Business Advancement in the United States

• Enhanced the product capability
• f the bank and securities, by

acquiring approx.100 personnel from RBS who ran the bank- securities integrated business model at RBS

• Improved business process,

etc., to support the rapid business expansion

Materializing the synergy effect from the integration with RBS: Improved the customer base as well as solution providing capabilities

Investment Grade, Bookrunner basis Source: Dealogic

• No. of companies which recognize Mizuho as their

Top Tier Bank

SLIDE 30

29

1 Asset Management One 22 2 SMTH 18 3 MUFG 13 4 Blackrock 12 5 State Street 8

Mizuho Trust Bank

(AM functions)

To Become Global Top 20 in AUM from Asia No.1

Aim to become a global top level asset management company as the “4th Pillar” of the One MIZUHO Strategy

Asset Management One

Establishment of Asset Management One Direction of Business Development

Evaluation of AM service Asset Under Management (AUM)

Shinko Asset Management Mizuho Asset Management DIAM

Provide investment products through, but not limited to, group-wide channel as a “Product Development Function” in line with Mizuho’s asset management (AM) strategy

Source: The Investment Trusts Association, Japan and Japan Investment Advisers Association as of Mar. 16

(JPY Tn)

 AUM of the AM companies in Japan

Retail Corporate Pensions

 Entrusted AMs from GPIF  Awards received from external institutions

Asian Investor

Fund House of the Year (Japan) 2016

(Reference) Mizuho’s initiatives regarding fiduciary duties

Source: Government Pension Investment Fund (GPIF) website as of Mar. 16

Fulfill the fiduciary duties and contribute to customers by supporting their asset building

(JPY Tn)

Focus on publicly offered investment trusts utilizing advanced capabilities developed for pensions and institutional investors Meeting various needs under the difficult environment in managing assets Meeting needs to replace JGBs by increasingly sophisticated asset management capability under the NIRP environment

Give top priority to addressing the customer’s interests and offer products and services which truly meet the needs and interests of the customers Voluntarily disclose the handling fees from insurance companies so that the customers can make more appropriate decisions when contracting life insurance

Feb Aug

Announced the Policies Regarding Mizuho’s FD Disclosed the Life Insurance Commission Disclosure Regime

1 Asset Management One 52 2 Nomura Asset Management 39 3 Blackrock Japan 22 4 Daiwa Asset Management 15 5 Nikko Asset Management 15 6 Mitsubishi UFJ Kokusai AM 13 7 State Street 12 8 Sumitomo Mitsui AM 12 9 PIMCO 11 10 Nissay Asset Management 10

Asset Management Company

and more

SLIDE 31

30

Quickly respond to new systems and external environment changes

Solution Providing

Long term and low cost support from subscription to receipt of pension Comprehensive consulting to address changing and diverse customer needs

AM One* TB

Diversification of asset class Sophistication of investment strategy

Corporates Financial Institutions

Negative Interest Rates

NPOs

After 60 yrs old Subscription Education Program Robot Advisor (SMART FOLIO) Telecommunication

1

Most reasonable and thought out product lineup

2

Adequate support

3

Competitive fee

Privately placed investment trusts Investment discretion etc.

Pension Trust etc.

Increase in pension liability

Self-employed, Corporate Employees

(w/o corporate pensions)

3.7million

Civil Servants, Full-time Homemakers, Corporate Employees

(with corporate pensions)

6.7million

Existing After Jan. 17

Basic Policy

• Address the diversified

way of working

• Encourage individuals to

build assets on their own

Initiative to Address the Increase of iDeCo* Eligible Individuals

*iDeCo: Individual-type Defined Contribution (DC) Pension Plan

Revision of the DC Law

Self-employed, Corporate Employees

(w/o corporate pensions)

Materializing the “Shift from saving to investment/asset building” trend as the market leader in the DC business

Providing Solutions to Address the Negative Interest Rates Environment

Necessity for an alternative investment opportunity due to the decline in domestic bond yields

(Decline in discount rates  Increase in projected benefit obligation)

Asset Management Solution Comprehensive Pension Consulting

Revision of portfolio, pension plan/management

Asset Management Company

* Asset Management One

Substantial increase in iDeCo Eligible Individuals

SLIDE 32

31

5 10 15

• 0.4
• 0.2

0.2 (JPY Tn) (%)

JGBs (right axis) 10 Year JGB Yield 3 Year JGB Yield

15.6 10.5

• Mar. 16
• Jun. 16

Sep.16 10.3

Global markets GMC: precise early warning control of market volatility FG: consistent investment strategy development

Secure both profitability and risk management capability through comprehensive group-wide “One Responsibility” structure

Introduction

• f the In-house

Company System

Global Markets Company

Share market outlook and investment strategies among subsidiaries

Group-wide fixed income portfolio management appropriately capturing market volatility

JGB Investments Strengthening Sales & Trading (S&T)

FG

Execution aligned with GMC policies

GMC Strategy Meeting JGB Yield Trends and JGB Portfolio

2 Banks, acquisition cost basis

Strengthen market-related profits by identifying customer needs BK SC TB

¥

Increase market-related profits utilizing customer needs

• btained from the whole group

Individuals Corporate and Financial Institutions

Shared market outlook and planned customer segment based strategies

In-house company based management

Provide optimal product and solution corresponding to customer segments

Operations utilizing customer money flow

Sales Sales Sales Trading Trading Trading

FG

S&T GM Mtg Investors (hedge funds, etc.)

BK TB SC

SLIDE 33

32

Contribute to the realization of becoming a “Financial Services Consulting Group” by providing

• ptional solutions

Professional Group

Global Products Unit

Realize Customer First Market-driven Approach

Case 1：LBO Value Chain Transaction through PE Fund Case 2：Value Chain Transaction with prospective IPO companies Prospective IPO companies Supplier Buyer

(PE Fund)

M&A EXIT

IPO

Customers BK TB SC

Acquisition Finance Real Estate Finance Project Finance Syndicated Loans

Domestic and

• verseas

transactions

• Cash Management
• FX・Global Transaction
• Trade Finance

Custody (for overseas customers)

Asset Finance Real Estate Brokerage Real Estate Trust・ Asset Management Securitization Business Using Individuals’ Funds

Custody (for domestic customers)

Trust Solutions Stock Transfer Agency M&A Advisory Real Estate Private Fund Arrangement Debt Capital Markets (Bonds Underwriting) Equity Capital Markets (Equity Underwriting) Asset Finance Arrangements

IPO Consulting

SC Also focus on acquiring following transactions through value chain sales

Increase level of expertise and offer wide range solutions using functions across in-house companies

Trade Sales

Shareholder Policies Proposal

TB

VC Investments

Mizuho Capital

IPO Lead Manager

SC

Stock Transfer Agency

TB

Consulting services for listing related process

TB

FA

BK・SC

LBO

BK

Stock Transfer Agency/ Lead Manager

TB・SC

Finance/FA (Buyer)

BK・SC

SLIDE 34

33 Gathering research and consulting functions into “One Think Tank”

Aim to be the most experienced team of experts dedicated to addressing the various challenges Mizuho’s customers may face, as the first full-fledged Research & Consulting Unit (One Think Tank) as a Japanese bank

Research & Consulting Unit

One Think Tank

Initiatives to Establish the One Think Tank

Provide optimal solutions to a wide range of customers from private to public sectors <Mizuho> One Think Tank & Nikkei 2020 Forum Start the enhancement of our membership function. Consider the establishment of an unified platform gathering various expertise within Mizuho, with an aim to materialize “members to invite other members structure” Published reports featuring the outlook of Japanese industries, Brexit and US presidential election utilizing the expertise within the Unit Held Unit-wide forum focusing on Tokyo 2020 Olympic Games in conjunction with third party

TB Consulting Dept. Mizuho-DL Financial Technology BK Industry Research Dept. Mizuho Research Institute Mizuho Information & Research Institute SC Research & Consulting Unit

Mizuho

One Think Tank Navi

Customers

Published One Think Tank Reports Enhanced membership function

Launching the Research & Consulting Unit

Visualize One Think Tank functions on the intranet Image

SLIDE 35

34

Enhancement of Balance Sheet Control

SLIDE 36

35

Establish a resilient financial structure through sophisticated control of the balance sheet

Balance Sheet Control

Initiatives to Improve Risk-Return

Infrastructure Project Institutional Investor

 Risk/return analysis according to customer segment  Thorough early warning control utilizing risk maps

In-house Company FG

Formation of Management Strategy ROE Management Profit Management Profitability Data

ROE Target by Transaction by Customer by Customer Group

RAF* Profit Plan Reduce Low- profitability Assets Portfolio Plan

* Risk Appetite Framework ROE

Improve Profitability

“Autonomous” Improvement of Efficiency

Balance Sheet Control Strategies

Consolidated Total Assets

JPY 193Tn (Mar. 2016)

Deposits and NCD

Liability Control

• Shift from deposits to

investment products

Capital Adequacy Improvement

• Steady accumulation
• f retained earnings
• Deliberate issuance of

capital eligible securities and TLAC eligible securities

Improve leverage ratio and RORA Improve CET1 ratio and leverage ratio

• Decrease market

based funding and repo transactions

• Decrease non-

customer assets / decrease fund-credit investments

Market Related Efforts Strengthen Asset Turnover

• Reduce low

profitability assets

Improve CET1 ratio and leverage ratio Improve CET1 ratio and leverage ratio

• Appropriate control of

foreign currency denominated assets

• Disposal of

cross-shareholdings

Improve leverage ratio and RORA

Loans

JPY 73Tn JPY 117Tn

Securities

JPY 39Tn

Net Assets

JPY 9Tn

Develop a Resilient Balance Sheet through both “Offensive” and “Defensive” Measures

Initiatives to Rotate Assets

Balance Sheet Control Strategies

Fund

¥

BK

$

Receivables Investment to BK owned infrastructure project related receivables Investment

MGAI*

Investment advisory

 Launched Japan’s first fund with a size of JPY 10.0Bn in Jul. 2016 that invests in loan for infrastructure projects  Mizuho will be able to reduce long term foreign currency-denominated assets, while providing a new investment opportunity to investors

Starting the Business Portfolio Analysis

 Incorporating cost/return perspective in addition to risk/return analysis to further promote the “selecting and focusing of business areas” hereafter

* Mizuho Global Alternative Investments Ltd.

SLIDE 37

36 Loans

Balance Sheet Control Strategies

Total Assets: JPY 192Tn (-JPY 0.7Tn)

Net Assets

JGB: JPY 13Tn (-JPY 5.6Tn)*3

Loans: Securities: Deposits, Negotiable Certificates

• f Deposit (NCD):

Other Liabilities: Other Assets:

Stock: JPY 3Tn (-JPY 0.2Tn)

JPY 73Tn JPY 119Tn JPY 32Tn JPY 86Tn JPY 8Tn JPY 63Tn

ROE based balance sheet control initiatives produced results in various areas

Toward Strong Financial Base

Overview of Balance Sheet (as of Sep. 16)

Strengthened Balance Sheet Control

• Asset rebalancing emphasizing the improvement of risk-return

which is based on in-house company ROE management

• Flexible ALM operations appropriately managing market volatility
• Capital enhancement through accumulating internal reserves
• Despite lagging domestic funding demand, progress seen in rebalancing from

low-profitability to high-profitability assets

• Maintain the quality of loan assets through comprehensive early warning control
• f risk factors

Securities

• Decrease in JGB balance through market operations appropriately capturing

market volatility

• Initiatives to improve risk-return supported cross-shareholdings disposal

Deposits

• Addressed increased volatility of the financial market through a stable funding

structure supported by the increase in foreign currency-denominated customer deposits

Other Assets

• BK and TB managed to avoid negative interest rate payments due to appropriate

controls despite BOJ deposits increasing from the sale of JGBs and increase in Yen deposits

Net Assets

• CET 1 ratio increased to 10.99%*5 through steady accumulation of

internal reserves (CET1 ratio excluding Net Unrealized Gains on Other Securities: 9.14%*5)

Liquidity Coverage Ratio (LCR): 137.4% (Average from Jul. to Sep. 2016) Leverage Ratio: 4.05% Domestic Loan: JPY 50Tn (-JPY 1.5Tn)*1 Overseas Loan: USD 205.1Bn (+USD 1.5Bn)*2

(-JPY 0.6Tn) (+JPY 2.2Tn) (-JPY 6.8Tn) (+JPY 6.7Tn) (-JPY 2.6Tn) (-JPY 0.3Tn)

Foreign Currency-denominated Customer Deposits: USD 180.5Bn (+USD 12.0Bn)*4 Cash and Due from Banks: JPY 42Tn (+JPY 6.3Tn)

*1: 2 Banks, excluding loans to FG and the Japanese Government, etc. *2: BK (including subsidiaries in China, the US, the Netherlands, Indonesia, Malaysia, Russia and Brazil) *3: 2 Banks *4: BK (including subsidiaries in China, the US, the Netherlands, Indonesia, etc.) , including foreign currency deposits (domestic) *5: Fully-effective basis Figures in ( ) represent change from Mar. 16

SLIDE 38

37

50 100 150 200

• Mar. 15
• Jun. 15
• Sep. 15
• Dec. 15
• Mar. 16
• Jun. 16
• Sep. 16

(USD Bn)

MUFG SMFG Mizuho

100 200

Foreign Currency Loans

60% 71% 77%

Proportion of Deposit to Loan

20 40 60 80 100 (bp)

USD/JPY Currency Basis Swap (1year)

• Mar. 16
• Sep. 16
• Sep. 15
• Mar. 15

Responded appropriately to the external environment by focusing on ALM with thorough early warning control, not only for Japanese Yen but also for foreign currencies mainly through increasing foreign currency denominated deposits

Foreign Currency Liquidity

Foreign Currency ALM (Liquidity Management)

Foreign Currency Loans and Deposits Foreign Currency Balance Sheet Control/ Liquidity Management

Respond to the external environment appropriately and execute foreign currency liquidity measures such as securing deposits

(Reference) Funding from US Prime MMF (Reference) Historical Trend of Currency Swap Rates

Appropriate foreign currency balance sheet management towards a sustainable foreign currency based business

Plan foreign currency liquidity policies based on the market trend

FG

Portfolio Plan by each In-House Company Foreign Currency Balance Sheet Plan Group companies

Foreign Currency Customer Deposits

(USD Bn)

• Mar. 15
• Mar. 16
• Sep. 16

Source: Office of Financial Research

BK (including the banking subsidiaries in China, the US, the Netherlands and Indonesia, etc.), managerial accounting

Source: Bloomberg *1: Including foreign currency loans and deposits (domestic) *2: New managerial accounting rules have been applied in 2016. Figures for Mar.15 and Mar. 16 were recalculated based on the new rules.

213.4 129.1 237.7 168.5 235.0 180.5

*1 *2 *1

SLIDE 39

38

Reflecting the potential impact on our financial position associated with the risk of stock price fluctuation, unless we consider holdings to be meaningful, we will not hold the shares of other companies as cross–shareholdings Annual assessment of the objective of holdings (e.g. compare the profitability of each customer to our hurdle rate)

Cross-shareholdings Disposal

Promote cross-shareholdings disposal through initiatives to enhance capital efficiency by implementing in-house company ROE

Cross- shareholdings Disposal

Basic policy of cross-shareholdings

* Other Securities which have readily determinable fair values. Acquisition cost basis

Cross-shareholdings Disposal Plan Assessment of the objective of holdings

Reduction amount approx. JPY 250Bn

(Target)

JPY 1,962.9Bn

Mar.15 Mar.17 Mar.19

Reduction amount JPY 550Bn

(Target)

Japanese Stocks*

Sep.16

(Result)

JPY 1,798.9Bn

(Result)

• JPY 163.9Bn

consolidated

Japanese Stocks, Acquisition Cost Basis, FY15-FY18 aggregate

Reduction Amount: JPY 550Bn Aim to reduce approx. JPY 250Bn by Mar. 17

The above information includes forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. See “Forward-looking Statements” on P.1 of this presentation

SLIDE 40

39

Pursue Operational Excellence

SLIDE 41

40

Fin Tech

Top-down exercise of measures including FinTech, etc. Measures for Problem Solving Type Cost reduction effect (estimate)

Pursue Operational Excellence

Improve “operation,” the execution capabilities of the strategies, and along with the differentiation of strategies centered on “customer-focused" approach, lead to establishing a sustainable competitive advantage and to enhancing added value of customer services

Add Value

• Downsize head office functions
• Revisit products and

services

• Revision of domestic channels

and networks

• Reduction of operations by

front-line personnel

Approx.200 measures

Exercise PDCA based on a detailed action plan

Measures for Structural Reform Type

Substantially improve productivity through discontinuous thinking e.g.

• Review the business operation

based on the clarification through selection and focus

• Integration of group business by

using the revision of Banking Act as an opportunity

• New business using big data

effectively

• Replacing routine work using

AI/Robotics

• Fundamental reform of business

process using blockchain

Structural Reform Type Problem Solving Type

Efficiency Enhancement

JPY 50.0Bn～

(FY18 - FY15)

Operational Excellence Promotion Committee (Chairman: Group-CEO) Heads of In-house Companies / Units / Groups

Review the progress

• f measures

Monitoring KPIs

Promotion Structure

The above information includes forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. See “Forward-looking Statements” on P.1 of this presentation

SLIDE 42

41

Strengthening expense control through selective investment for strategic expenses and promotion of operational excellence

Expense Reduction

Expense Ratio

Investment decision based on management environment

(JPY Bn)

Expenses Plan for the Medium-term Business Plan

FY2020: Aim for mid 50% range 60.0% FY2018 (Plan): Approx. 60% level

(excl. next-generation systems related: higher 50% level)

Expense Amount

rounded figures, group aggregate, managerial accounting

JPY 1.26Tn

60～ 50～ 50～

FY2018 (Plan) FY2015 (Result) FY2020

(Illustrative Purposes)

Increase /decrease factors for FY2018 plan in comparison with FY2015

Strategic Expenses Next-generation It systems, etc. Operational excellence effects

50～

Core expenses

Investment Policy for Strategic Expenses

Considering cost-return as a core for selective investment which helps

1) Growth in short/medium term 2) Expansion of business base In the future

Initiatives to Reduce Expenses

Front Office related

1) Reform channel strategy 2) Optimize investments/revision of

• utsourcing

3) Centralize overseas middle/back office

• peration

4) Integrate group-wide purchase/ Globally centralize contracts

Operational Expense Effects (examples) Head Office related

1) Centralize group-wide common operation 2) Reform working style by utilizing tablet device, etc. 3) Shift products/services to focus areas 4) Reform system structure/IT operation processes

1H FY16 result JPY 8.0Bn 1H FY16 result JPY 2.5bn FY16 Target

• ver JPY 10bn

Mainly caused by increase in tax, etc., and impact of changes in currency rates

The above information includes forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. See “Forward-looking Statements” on P.1 of this presentation

SLIDE 43

42

Transition to Next-Generation IT Systems

 For the next-generation IT Systems, the highest priority is placed on ensuring quality and launching the system safely.

Thorough tests are currently being conducted

 As it is a very large scale development, multiple checks need to be conducted across various fields. Although some items may still be

• utstanding as of December 2016, full understanding of the current status is secured and highest priority will be placed on ensuring the quality

 The most critical point is a safe and steady transition, thus the preparation will be carefully conducted. The next-generation IT systems

migration is planned to be implemented gradually, after migration rehearsals, etc. are prudently conducted (during the migration period, current and next-generation IT systems will be concurrently operated)

 Unification of Core Banking Systems of former BK/former CB/TB

• Downsize and streamline IT systems
• Improve response to potential system failure

 Independent components by business and function

• Improve flexibility through simple structure
• Enable flexible adaptation to new services
• Shorten the lead time and reduce costs for new

development

 Cutting edge “Next-Generation” Core Banking Systems

• Strengthen infrastructure for providing services
• Improve operations processing speed

投資額(概算)： 3, 3,000 000億円台前半

(Existing Systems)

Outline of the Next-Generation IT Systems

TB BK Former BK System Platform for Banking Business Former CB System Platform for Banking Business System Platform for Banking Business

Unification of IT Systems

Customer Channel Systems Core Banking Systems Information Mgt Systems

Internal Terminals Systems for External Connections, etc. Internet Banking, etc.

Common Operational Infrastructure (in operation since FY13) Systems related to Core Information Management ・・・

Deposit Remittance Credit Transactions Foreign Exchange Trust Business

Component Systems related to Products

Next-Generation IT Systems ahead of Competitors

<Transition to the Next-Generation IT Systems (Conceptual Illustration)>

Investment amount (estimate): Higher JPY 300Bn range

(Conduct additional test, etc. to improve quality)

The above information includes forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. See “Forward-looking Statements” on P.1 of this presentation

SLIDE 44

43

Responding to FinTech Developments

Cover most business areas related to FinTech by effectively utilizing technologies such as Blockchain and AI Pursue profit increase and cost reduction

Future Direction

Mizuho’s Initiatives FinTech Business Areas Effects Anticipated Creation of new business Enhancement

• f business
• peration

Blockchain Financial Management/ AM Advisory Big Data Financial Information Lending Remittance/Settlement Other Routine Operation AI Robotics, etc.

Cost reduction Profit increase

Utilized Technologies

Proof of Concept

Financial Management Asset Management / Advisory Financial Information Financial Management Settlement Syndicated Loan Overseas Remittance Cross-Border Securities Transaction Settlement Lending Balance Enquiry Enquiry and Navigation Call Center Encryption and sharing records, etc. Support for Start-ups

SLIDE 45

44

Enhancing business operation and creating new business by utilizing FinTech

FinTech

Cross-border Settlement utilizing Blockchain

Able to share details of the transaction among the parties

Merits

FinTech Lending Business

Unable to share details of the transaction

No administrator

1

Shortening the time for settlement (3 days → same day)

2

Decrease the risk of failed transaction

3

Lower cost

1

Improve user experience utilizing pre-scoring and smartphone

2 3

Lower cost of operation by not requiring branches

Completed Proof of Concept

• 24 million individual

customers

• Expertise in finance
• 43 million subscribers

(accumulated basis)

• Expertise in AI

Finance Technology Scoring system utilizing Big Data and A.I. Interest rates and size of facility are decided by the score

Foreign investors Foreign Security Company Domestic Account Administration Agent Domestic Account Administration Agent Foreign investors Foreign Security Company Domestic Account Administration Agent Domestic Account Administration Agent Agreement Settlement Settlement

• rder

Settlement

• rder

Agreement Settlement Settlement

• rder

Settlement

• rder

Register transaction information

• n Blockchain

Creation of New Business

Planning to launch in 1H of 2017

New business model clearly differentiated from traditional consumer finance

Merits

Expand high quality customer base by increasingly sophisticated credit assessment capability

SLIDE 46

45

Management positions

• utside Japan

7% 3% 10% 22% 34% 30% 30% 20% 10% 10%

New graduates (Generalist track)

Reform HR management, the key to realizing the group strategy, and thoroughly differentiate from peers

• Support the reform of our corporate culture through fundamental reform of HR management that will change the

way of thinking and the way of working for all employees

 Development-type HR management system that respects the individuality of each and every employee, helping them to grow

• An evaluation system that doesn’t discourage

people from challenging aggressively  Multilateral-type HR management that respects various career plans  Providing opportunities to all employees to develop skills regardless of their employment type

HR Management which respects individuality

 Establish workplace where people can succeed irrespective of culture, sex, and nationality  Create new values by aggressively utilizing innovative/diverse views and ideas  Develop talent through training programs in order to promote non-Japanese and women to management roles

Diversity & Inclusion (D&I)

 Fundamental reform to establish a comfortable work environment for all staff, increasing long- term commitment

• A supporting system targeting zero turnover due

to nursing care

• Fundamental implementation of telecommuting
• Compensation plan for employees who support

the people who have to limit their work

• 100% of male employees to take child care leave

Work Life Balance

Percentage of women

64% 1.5%

Percentage of paid time off taken by employees and eligible male employees who take childcare leave

33%

Percentage of locally hired staff in management roles

2.2%

Percentage of employees with disabilities

50%

70% 100% 2.3% Target Results

A virtuous cycle between all employees’ success/growth + Realization of Mizuho’s goal = Full engagement of employees

Shift from “Diversity” to “D&I” Provide opportunities to grow and succeed to all employees

Embedding a Corporate Culture that Encourages Active Participation of Our Workforce

Fundamental Reform of HR Management

 Introduction of Mizuho’s Next-generation Leadership Training Program  Selected the candidates for future leaders from group-wide and global-wide talent pool  Thoroughly strengthen each person’s mentality (commitment and courage) to run the company, and skills to design and envision the big picture

Development of Future Leaders

Develop leaders who can make changes

Diversity & Inclusion (Numerical Targets)

Realization of productive and efficient way of working

General Manager- equivalent Manager-equivalent

• r above

Assistant Manager- equivalent or above Management positions outside Japan Employees who take paid time off Eligible male employees who take childcare leave Employees with disabilities

Overseas Domestic The above information includes forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. See “Forward-looking Statements” on P.1 of this presentation

SLIDE 47

46

Capital Management

SLIDE 48

47

6.5 7.5 7.5 7.5 FY13 FY14 FY15 FY16(estimated)

Dividend payout ratio

23% 30% 28% 32%

Steady Returns to Shareholders

Capital Management

Strengthening the Capital Base towards the target of the mid-term business plan and continuing steady returns to shareholders

*1: Basel 3 fully-effective basis (based on current regulations), excluding Net Unrealized Gains on Other Securities. Including Eleventh Series Class XI Preferred Stock (the balance as of Mar. 2016: JPY 98.9Bn, mandatory conversion date: Jul. 1, 2016) up to Mar.2016 *2: Assuming Net Income Attributable to FG of JPY 600.0Bn (JPY)

*2

Strengthening of Stable Capital Base

CET1 Capital Ratio*1(excluding Net Unrealized Gains on Other Securities) Cash Dividend per Share of Common Stock Aim: steady dividend payout policy with a dividend payout ratio on a consolidated basis of approx. 30% as a guide for our consideration

Dividend Policy

Target CET1 Capital Ratio of approx. 10% (at March 2019)

Mid-term Business Plan Announced current dividend policy in May 2014

Capital Management

7.84% 7.76% 8.77% 9.14%

• Mar. 14
• Mar. 15
• Mar. 16
• Sep. 16
• Incl. Net Unrealized Gains
• n Other Securities

9.08% 10.46% 10.85% 10.99%

The above information includes forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. See “Forward-looking Statements” on P.1 of this presentation

SLIDE 49

48

Future Direction for Financial Institutions Towards “Society 5.0”

SLIDE 50

49

Solve social issues -> Realize Society 5.0

Search for a new solution model Use of technology Social issues Future Direction for Financial Institutions Changing times

Direction of financial institutions' efforts to realize "Society 5.0"

Society 5.0

Shift from the Age of Certainty to the Age of Uncertainty

Aging population Declining birthrate Limited natural resources Environmental issues Limited gov’t resources (funds for social security costs) Regional exhaustion Disparity/Poverty Aging infrastructure

IoT AI Biotech Robotics Drones Automated vehicles Blockchain Big data

Expand new business areas

Creating new value by utilizing accumulated data Transforming face-to-face customer interaction Reducing transaction costs

• Comprehensive consulting
• New microfinancing
• Robo advisory ...etc.
• Branch as a place offering

sophisticated consulting

• Revising branch strategy
• Reviewing current
• perations in order to

improve efficiency and productivity

The unbundling and rebundling of financial services

Accumulation of various customer issues/needs with the development of CtoB business Increased adoption and sophistication of non- face-to-face channels Spread and progress of blockchain technology and virtual currency

Enhancing the efficiency and sophistication of operations and services

Financial Institutions in the Near Future

Open Innovation

SLIDE 51

50

• 2. Progressive Development of “One MIZUHO”
• 1. Interim Results for FY2016 – Executive Summary
• 3. Interim Financial Results for FY2016
• 4. Enhanced Governance System

SLIDE 52

51

YoY

1 Gross Profits

768.1

• 54.8

822.9

2

Net Interest Income

377.6

• 73.2

450.8

3

Fiduciary Income

24.2

• 2.4

26.7

4

Net Fee and Commission Income

195.7

• 3.1

198.9

5

Net Trading Income

75.5

31.4

44.0

6

Net Other Operating Income

94.9

• 7.3

102.2

7 G&A Expenses

• 464.3
• 7.7
• 456.5

8 Net Business Profits

303.8

• 62.5

366.3

9

Excluding Net Gains (Losses) related to Bonds

202.2

• 87.1

289.3 1H FY16 1H FY15

YoY

1

Gross Profits 768.1

• 54.8

822.9

2

Customer Groups 590.1

• 25.5

615.6

3

• /w Net Interest Income

342.7

• 26.7

369.4

4

• /w Non-interest Income

279.1

• 12.8

291.9

5

Trading & Others 178.0

• 29.3

207.3

6

G&A Expenses

• 464.3
• 7.7
• 456.5

7

Net Business Profits 303.8

• 62.5

366.3

8

Credit-related Costs 9.4

9.8

• 0.4

9

Net Gains (Losses) related to Stocks 65.3

• 34.2

99.6

10

Net Non-Recurring Gains (Losses) - Other

• 66.6
• 42.8
• 23.7

11

Ordinary Profits 312.0

• 129.7

441.7

12

Net Income 235.2

• 68.7

304.0

13

Consolidated Net Business Profits *1 403.2

• 43.4

446.7

14

Difference b/w Consolidated and 2 Banks *2 99.4 19.0 80.3

15

Net Income Attributable to FG 358.1

• 26.0

384.1

16

Difference b/w Consolidated and 2 Banks *3 122.9 42.7 80.1

1H FY16 1H FY15

Net Gains and Losses

Overview of Financial Results

*1: Consolidated Gross Profits - G&A Expenses (excluding Non-Recurring Losses) + Equity in Income from Investment in Affiliates and certain other consolidation adjustments *2: Consolidated Net Business Profits – Net Business Profits of 2 Banks *3: Net Income Attributable to FG – Net Income of 2 Banks Reference Pages SC Consolidated BK major overseas subsidiaries Mizuho Credit GuaranteeOther subsidiaries &

consolidation adjustments

(JPY Bn)

2 Banks 235.2

Consolidated

358.1

<+92.6> <+6.0> <+2.5> <-58.4>

*4: Figures in < > represent changes from 1H FY2015

131.3 18.1 15.6

• 42.1

P.13 P.12 P.10 P.52 P.55

Net Business Profits Difference in Net Income b/w Consolidated and 2 Banks

Customer Groups and Trading & Others are on a managerial accounting basis 2 Banks Difference

+122.9

<+42.7> *3 *4

2 Banks Consolidated

(JPY Bn)

SLIDE 53

52

289.8 297.1 282.3 278.3 257.6 75.9 74.2 87.0 88.8 85.1 365.7 371.2 369.3 367.0 342.7 1H FY14 2H FY14 1H FY15 2H FY15 1H FY16

Overseas Domestic

49.6 50.7 50.7 51.5 50.0 4.9 4.2 3.1 2.6 3.1 15.1 18.3 18.9 18.2 18.0 69.6 73.3 72.9 72.4 71.2 1H FY14 2H FY14 1H FY15 2H FY15 1H FY16

Overseas Domestic (loans to the Japanese Government, etc.) Domestic (excluding loans to the Japanese Government, etc.)

Loan Balance Net Interest Income

Net Interest Income from Customer Groups (Overview)

*1: Domestic: Aggregate of Net Interest Income in BK Domestic Banking and TB/Overseas: Net Interest Income in BK International Banking *2: Due to the introduction of the In-House Company System, there are changes in the managerial accounting rules and FY2014 and FY2015 figures are recalculated. The original total figures of net interest income before the recalculation were: FY2014: JPY 782.9Bn (1H: JPY 389.6Bn and 2H: JPY 393.3Bn) and FY2015: JPY 800.3Bn (1H: JPY 398.9Bn and 2H: JPY 401.3Bn) *3: Excluding loans to FG. Overseas is calculated based on an aggregate of banking and trust account basis and represents loans booked at overseas offices, including the impact of foreign exchange translation

(JPY Bn) (JPY Tn)

2 Banks, managerial accounting 2 Banks, banking account *1 *2 *3

Average Balance

736.9 ■ Overseas： 150.0 ■ Domestic： 586.9 FY14 736.4 ■ Overseas： 175.8 ■ Domestic： 560.6 FY15 FY16 71.5 ■ Overseas： 16.7 ■ Domestic： 54.7 FY14 72.6 ■ Overseas： 18.5 ■ Domestic： 54.1 FY15 FY16

Change from 2H FY15 <Overseas>

• 0.2

<Domestic>

• 1.0

Excluding loans to the Japanese Government etc.

• 1.5

<Total>

• 1.2

SLIDE 54

53

1.24% 1.19% 1.14% 1.10% 1.05% 1.01% 0.94% 1.18% 1.15% 1.10% 1.05% 1.01% 0.98% 0.93% 0.05% 0.04% 0.04% 0.04% 0.04% 0.03% 0.01% 1H FY13 2H FY13 1H FY14 2H FY14 1H FY15 2H FY15 1H FY16 Return on Loans and Bills Discounted ･･･ a Loan and Deposit Rate Margin ･･･ a - b Cost of Deposits and Debentures ･･･ b 0.87% 0.84% 0.82% 0.77% 0.75% 0.71% 0.70% 0.60% 0.61% 0.59% 0.57% 0.54% 0.52% 0.51% 1H FY13 2H FY13 1H FY14 2H FY14 1H FY15 2H FY15 1H FY16 Loans to Domestic Middle Market Firms & SMEs Loans to Domestic Large Corporate Customers 49.1 49.5 49.6 50.7 50.7 51.5 50.0 5.7 5.6 4.9 4.2 3.1 2.6 3.1 54.9 55.2 54.5 54.9 53.9 54.2 53.2 1H FY13 2H FY13 1H FY14 2H FY14 1H FY15 2H FY15 1H FY16 Loans to the Japanese Government, etc. Domestic (excluding loans to the Japanese Government, etc.)

• Sep. 13
• Mar. 14
• Sep. 14
• Mar. 15
• Sep. 15
• Mar. 16
• Sep. 16

Domestic 55.0 55.6 54.9 54.7 54.7 53.9 54.0 Large Corp., etc. 23.1 23.1 22.7 22.2 21.6 21.1 22.1

(o/w Japanese Gov.)

(5.6) (5.6) (4.4) (3.5) (3.1) (2.2) (3.9) SMEs *2 19.8 20.4 20.3 20.7 21.4 21.4 20.9 Individuals *3 11.9 11.9 11.8 11.8 11.6 11.3 11.0

Domestic Loan Spread

Average Balance

Domestic Loan and Deposit Rate Margin Domestic Loan Balance

Net Interest Income from Customer Groups (Domestic)

(JPY Tn)

1Q 1.02% 2Q 1.00% 3Q 0.98% 4Q 0.98%

2 Banks 2 Banks *1 *4 BK, managerial accounting

1Q 0.95% 2Q 0.92%

• JPY 1.5Tn

Excluding loans to the Japanese Government, etc.

• JPY 0.7Tn

Excluding loans to the Japanese Government, etc.

Period-end Balance

*1: Excluding loans to FG. Banking account *2: Calculated by deducting “Housing and Consumer Loans” from “Loans to SMEs and Individual Customers” *3: Housing and Consumer Loans *4: Domestic Operations, excluding loans to financial institutions (including FG) and the Japanese Government, etc.

SLIDE 55

54

Senior Bonds issued by FG

• 7.2

Senior Bonds 5.8 14.5 17.8 18.0 Subordinated Bonds 4.5 3.0 3.7 3.7 105.7 129.1 168.5 180.5 Mar.14

• Mar. 15
• Mar. 16
• Sep. 16

1.07% 1.04% 1.04% 0.97% 0.93% 0.91% 0.90% 1H FY13 2H FY13 1H FY14 2H FY14 1H FY15 2H FY15 1H FY16

Overseas Loan Spread

Foreign Currency-denominated Customer Deposit

(USD Bn) (USD Bn)

Outstanding balance of foreign currency bonds

Net Interest Income from Customer Groups (Overseas)

Overseas Loan Balance

*3 BK, managerial accounting *1: BK (including the banking subsidiaries in China, the US, the Netherlands, Indonesia, Malaysia, Russia and Brazil) *2: New managerial accounting rules have been applied since the beginning of FY16. Figures from 1H FY13 to 2H FY15 were recalculated based on the new rules *3: BK (including the banking subsidiaries in China, the US, the Netherlands, Indonesia, etc.), including foreign currency deposits (domestic) *4: Including foreign currency bonds issued by FG and its SPC subsidiaries, excluding bilateral non-public MTNs *1 *2 *1 *2 BK, managerial accounting

Average Balance Period-end Balance Period-end Balance

BK, managerial accounting

75.8 84.3 86.0 90.3 91.9 96.0 91.0 43.1 46.9 51.7 56.6 66.0 68.8 70.7 33.3 29.4 29.0 30.7 31.8 38.3 41.5 152.3 160.6 166.7 177.7 189.7 203.2 203.2 1H FY13 2H FY13 1H FY14 2H FY14 1H FY15 2H FY15 1H FY16 Europe Americas Asia

+USD 0Bn +USD 13.5Bn

• Sep. 13
• Mar. 14
• Sep. 14
• Mar. 15
• Sep. 15
• Mar. 16
• Sep. 16

154.9 162.8 166.4 186.6 192.5 203.6 205.1

+USD 1.5Bn +USD 12.0Bn

(Reference)

*4

SLIDE 56

55

Personnel +JPY 4.7Bn (YoY)

Increase in staff and expenses related to Employee Retirement Benefits

Non-Personnel +JPY 1.2Bn (YoY)

Increase in Premium for Deposit Insurance (including overseas offices)

Miscellaneous Taxes +JPY 1.7Bn (YoY)

Increase in Size-based business Tax, etc

Total +JPY 7.7Bn (YoY)

Controlled expenses almost in line with the plan due to Operational Excellence effect while increase in Base Expenses related to Employee Retirement Benefits etc. and Strategic Expenses (The impact of appreciation of Yen: Approx. -JPY12.5Bn)

44.2 54.8 55.5 29.1 30.8 497.1 529.1 517.9 257.0 258.2 322.8 324.3 337.4 170.4 175.2 FY13 FY14 FY15 1H FY15 1H FY16

Personnel Non-personnel Miscellaneous Taxes

864.2 908.3 910.9 456.5 464.3

G&A Expenses

*1: Excluding non-recurring losses *2: Employee Retirement Benefit Expenses = Service Costs + Interest Expense – Expected Return on Plan Assets 2 Banks Figures in ( ) are Employee Retirement Benefit Expenses*2 ( “+” represents expenses, “-” represents income) (+8.1) (-0.3) (-2.7) (-2.7)

(JPY Bn)

G&A Expenses

*1

Expense Ratio 57.3% 55.7% 56.9% 55.4% 60.4%

(-1.3) (+0.8)

Trend of Group aggregate G&A Expenses

managerial accounting rounded figures Base Expense Strategic Expense Operational Excellence

630 640

+4.5 +8

• 2.5

(JPY Bn)

YoY +10

• /w the impact of

appreciation of Yen:

• JPY 26Bn

Expense Ratio*3 62.1%

1H FY15 1H FY16

*3: Estimate of Group aggregate Expense Ratio for FY16 is mid 60% range

The above information includes forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. See “Forward-looking Statements” on P.1 of this presentation

SLIDE 57

56

Non-Japanese 47% Japanese 53% 0% 20% 40% 60% 80% 100% Financial Institution General Corporate Non-Chinese Chinese 69% 75% 72% 73% 1.0% 0.9% 0.6% 0.5%

• Mar. 14
• Mar. 15
• Mar. 16
• Sep. 16

Investment Grade Level Ratio NPL Ratio

Asia 44% Americas 36% Europe 21% Japanese 31% Non-Japanese 69% Hong Kong 23% Singapore 18% Australia 9% Thailand 9% Taiwan 8% China 8% India 8% South Korea 7%

Indo- nesia 3%

Others 7%

Asia 44% Americas 36% Europe 21% Asia 44% Americas 36% Europe 21% Japanese 31% Non-Japanese 69%

 Investment Grade Level Ratio is over 70%  NPL ratio declined although loan balance (period-end) increased

Overseas Loan Portfolio (Sep. 2016) Quality of Loan Portfolio*

Overseas Loan Portfolio

Established a stable and diversified loan portfolio

Downside Risk Tolerance (Preliminary)

BK (including the banking subsidiary in China) GCC managerial basis BK (including the banking subsidiaries in China, the US, the Netherlands Indonesia, Malaysia, Russia and Brazil), GCC managerial basis

China USD 7.5Bn Asia / Oceania USD 89.4Bn Total USD 205.1Bn

* Managerial accounting rules were changed. The original figures for Investment Grade Level were 70% for Mar. 14 and 73% for Mar. 16. All other figures remain unchanged

SLIDE 58

57

Normal Obligor Ratio*2 Americas Europe Asia (excl. Japan) Coverage Amount Coverage Ratio

Resource Sector Total 6.7 95% 3.6 0.9 0.5 1.4 0.04 0.03 79% Non-Japanese 5.0 94% 2.6 0.8 0.4 1.3 0.04 0.03 79%

4.2 97% 2.0 0.6 0.3 1.1 0.03 0.03 93%

2.7 96% 1.3 0.4 0.2 0.7 0.02 0.02 95% 0.3 97% 0.2 0.1 0.0 0.1 0.01 0.01 87% 1.2 100% 0.5 0.1 0.1 0.3

• 0.8

79% 0.5 0.3 0.1 0.2 0.01 0.00 35%

Japanese 1.7 99% 1.1 0.1 0.1 0.1 0.00 0.00 74%

1.6 100% 1.0 0.1 0.1 0.0 0.00 0.00 73% 0.1 95% 0.1 0.0

• 0.1

0.00 0.00 100%

Non-Japanese 34.9 98% Japanese 64.0 97% Exposure Total (Corp.) 98.9 97%

Crude oil & natural gas mining etc. Storage & Transport

Loan Balance, etc.*3 (JPY Tn) NPL Amount*4

Energy Resource ・From this time, (1) Changed the exposure from Exposure at Default (EAD) base to total exposure base (2) Added "Storage & Transport" (JPY 0.3Tn) to the Non-Japanese resource sector ・Before the aforementioned change, the Resource Sector Total was JPY 6.1Tn

Exposure*1

Petroleum refinery & products manufacturing etc.

Mineral Resource*5 Energy Resource Mineral Resource*5

• O/w project finance that is susceptible to price decline: approx. JPY 0.5Tn
• Regional breakdown of resource sector exposure:

Americas (JPY 2.5Tn), Asia, excl. Japan (JPY 1.6Tn), Europe (JPY 1.1Tn)

• Exposure to non-resource related companies which is not included in the above figures*6: Non-Jap. (JPY 1.1Tn), Jap. (JPY 0.2Tn)

Exposure to Resource Sectors (Sep. 2016)

Exposure to Resource Sectors

*1: Loans, foreign exchange assets, acceptances and guarantees, commitments, etc. Resource sector excludes Japanese general trading companies, petrochemistry, iron and steel, nonferrous metal, and project finances which are not categorized as those susceptible to price decline *2: Percentage of exposure to customers having strong results and no particular problems with their financial condition *3: Outstanding balance of loans and bills discounted, foreign exchange assets, and acceptances and guarantees *4: Disclosed Claims under the Financial Reconstruction Act (net of partial direct write-offs) *5: Metal mining, coal and coal briquette, etc. Including commodity trader *6: Exposure to non-resource related companies whose parent company falls under the relevant resource sector BK (including banking subsidiaries in China, the US, the Netherlands, Indonesia, etc.) Managerial accounting

SLIDE 59

58

• 2. Progressive Development of “One MIZUHO”
• 1. Interim Results for FY2016 – Executive Summary
• 3. Interim Financial Results for FY2016
• 4. Initiatives related to ESG

SLIDE 60

59

329.7 519.6 595.4 93.4 104.4 74.2 46.1 42.6 39.4 0.5 0.5 0.4 469.7 667.1 709.5

• Mar. 14
• Mar. 15
• Mar. 16

<Contents> Wind power Solar power / thermal Biomass Geothermal Hydroelectric Proper waste disposal / recycling business Others

UN Global Compact

Ten principles addressing matters such as human rights, labor, the environment and anti-corruption

Initiatives Related to ESG: Environment

Environment-related Finance Results

(JPY Bn)

UNEP Finance Initiative

International partnership of financial institutions concerning sustainable development

Smart City Project

UN: Principles for Responsible Investment

Principles which ensure ESG issues are incorporated into the investment decision-making process

Aim to be the most trusted partner in solving problems and supporting the sustainable growth of customers and communities as a Financial Services Consulting Group

Environment

Participation in ESG related initiatives Social Responsibility Indices which include MIZUHO

BK Others All-electric housing loans Finance for environment friendly companies Environment-related Project Finance

JPY 190.2Bn JPY 310.8Bn JPY 4.0Bn JPY 1.5Bn JPY 2.0Bn JPY 24.1Bn JPY 62.9Bn

ESG Promotion

Support growth strategies of Japanese industries from a financial standpoint through urban development projects Structure “Japan-oriented” environmental city projects at 8 locations* around the globe Toward the development of financial structures for the future

* Chennai, India; Tianjin, China; Hawaii, USA ; Guangzhou China; Saudi Arabia; Manchester, UK; Slovenia; Haryana, India

SLIDE 61

60

Industry Fostering Support

Diversity-related awards, etc.

ESG Society

Initiatives to support recovery of Kyushu Promote initiatives to contribute to the sustainable growth of the economy and society as well as regional empowerment by utilizing Mizuho’s network

17 funds invested

(as of Sep. 30, 2016) Signed the “Agreement on the Recovery Support of Kumamoto Prefecture” (Aug. 2016). Provided support in areas such as urban development or infrastructure restructuring planning not limited to finance to assist the recovery of local industries Investing in the Sixth Industry and regional vitalizations related funds

Diversity and Inclusion Promotion Earthquake Disaster Recovery Support

Diversity Management Selection 100 Nadeshiko Brand Platinum Kurumin Realize sustainable growth through enhancing employees’ passion for self-growth in addition to creating new values by adopting ideas and opinions from diversified employees Initiatives to support recovery of the stricken areas from the Great East Japan Earthquake Arranged a syndicated loan transaction in collaboration with 7 local financial institutions for Mirai Ships Inc., a company established in September 2016, mainly by 4 ship builders based in Kesennuma City, Miyagi Prefecture, which were stricken by the Great East Japan Earthquake Execute financial intermediation and consulting functions by utilizing Mizuho’s strengths such as industry knowledge and financial expertise, to support the recovery of stricken areas Conducted proactive initiatives such as diversity management, promotion of participation by women, childcare support and else Contribution to the recovery of Kesennuma, one of the most prominent fisheries city in Japan Support provided in Kumamoto Prefecture recovery

Initiatives Related to ESG: Society

Illustrative Image Ship retracted Ship on the rack

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61

Board of Directors

Management

President & Group CEO Banking (BK) Trust (TB) Securities (SC)

Companies Units Groups Election of Directors

Nominating Committee

Determines the compensation Determines the compensation for each individual executive officer

Compensation Committee

All members, in principle, shall be independent outside directors All members, in principle, shall be independent outside directors The Chairman shall, in principle, be an independent outside director Non-executive directors shall comprise a majority of the directors Executive internal director Non-executive internal director

Risk Committee

General Meeting of Shareholders

Determines the contents of proposals regarding the appointment and dismissal of directors

• Appoints and dismisses executive officers
• Delegates decisions on business execution
• Supervises the execution of duties

Supervision and Audit

Audits the execution

• f duties

Holding Company (FG) Audit Committee

Majority of members shall be independent outside directors

“Market-driven approach” based on customer segments Further enhancement in expertise and firm-wide utilization of functions Planning, management and internal audit

Corporate Governance: Governance System

RBC, CIC, GCC, GMC, and AMC Global Products, Research & Consulting Units Strategic Planning, Financial Control & Accounting, Risk Management, Human Resources, IT & Systems, Operations, Compliance and Internal Audit Chairman Independent

• utside director

(non-executive)

Human Resources Review Meeting Independent Outside Director Session

Explanatory Notes Independent outside director (non- executive) Non-executive internal director Executive internal director Determines the contents of proposals for general meeting of shareholders regarding the appointment and dismissal of directors Determines the compensation for each individual director and executive officer Audits the legality and appropriateness of the execution of duties by directors and executive officers

Initiatives Related to ESG: Corporate Governance

Board of Directors

Audits the legality and appropriateness of the execution of duties by executive officers

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62

Addressed challenges

Initiatives for Governance System Enhancement

Initiative to Improve Effectiveness of the Board of Directors Promote “offensive” governance reform with an aim to improve corporate value

Governance Enhancement

Three Lines of Defense*

FY2014

10月

1) Enhance discussions with an emphasis on corporate value maximization 2) Further vitalization of fundamental discussions

Transition into a Company with Three Committees Conducted self evaluation mainly by independent outside directors Conducted self evaluation based on third party evaluation

Recognized challenges

1) Conducted high quality discussions mainly on medium term challenges prior to the development

• f the new medium-term business plan

2) Focused on fewer topics and created time for

• deliberation. Clarified the points for discussion

 Conducted interim evaluation at the Independent Outside Director Session (solely consisted of Independent Outside Directors)  Conducted third party evaluation based on questionnaire, interview among others, utilizing knowledgebase of outside specialists

FY2015

1) Further enhancement and streamlining of deliberation 2) Further usage of Independent Outside Directors’ knowledgebase and application to management 3) Share the state of dialogue with our stakeholders

Recognized challenges

• Jun. 2014

Autonomous control functions

Business promotion divisions

Supervision and Audit Board of Directors Audit Committee Management Audit Assessment, examination, advise and rectify recommendations Executive Officers President & Group CEO Report Audit Internal Audit Committee

Internal audit functions Risk management and compliance functions

Oversight (monitoring), measurement and assessment Report

Internal Audit Group

• Dept. in charge of

compliance

• Dept. in charge of

risk management * Concept provided in the Corporate Governance Principles for Banks revised and published by Basel Committee on Banking Supervisions in Jul. 2015

Secure appropriateness and effectiveness of internal control through three lines of defense  Further strengthen integrated management of offence and defense at the first line level under the in-house company system

Third line Second line First line

To i

• ident

entify fy, asse ssess ss and manage ge ri risks sks