2015 Integrated Report –Annual Review–
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Mizuho Financial Group 2015 Integrated Report –Annual Review– (April 2014– March 2015) Mizuho has adopted a new brand slogan, “One MIZUHO: Building the future with you”, to indicate our commitment to become “The most trusted financial services group with a global presence and a broad customer base, contributing to the prosperity of the world, Asia, and Japan”. All Mizuho employees are committed to realizing the ideas embodied in our brand slogan, and together we pledge to all of our stakeholders to help Mizuho achieve its vision for the future. (Domestic) Branches: Approx. 800 branches, covering every prefecture in Japan (of which 180 are joint branches between MHBK, MHTB, and MHSC) ATMs: Approx. 6,700 (including joint ATMs between MHBK and Aeon) ATMs Outside Branches: Approx. 50,000 locations (including joint ATMs with convenience stores) (Overseas) 110 offices worldwide, covering 38 countries and regions Mizuho is the sole megabank to have branches in all 47 prefectures. Additionally, it has the No.1* ATM network in Japan. It also has approx. 50,000 remote ATMs nationwide (including those located in convenience stores). As for overseas, Mizuho’s global network is comprised of approx. 110 offices in 38 countries and regions. * Mizuho is No.1 in terms of the number of each megabank’s own ATM locations along with the number of other ATM locations offering the same usage commission fees as MHBK membership service. (This is based on the number of ATM locations following the arrangement for the joint usage of MHBK ATMs and Aeon Bank ATMs <As of March 31, 2015, there were 1,826 MHBK ATM locations and 4,881 Aeon Bank ATM locations.>) 2 Mizuho’s balance of assets under management amounts to approx. ¥50 trillion. In addition, the number of individuals, who designate Mizuho as an administrator for their Corporate Defined Contribution Pension Schemes, amounts to approx. 1 million. Leveraging the overall integrated financial power of the Group, including the Group’s asset management companies, Mizuho is in the top class of Japanese institutions regarding asset management and pension fund trust services. Balance of Assets under Management: Approx. ¥50 trillion Number of Dened Contribution Plan customers: Approx. 1 million 3 No.1 in Syndicated Loan Arrangement Amount in Japan Arranged Amount: ¥9 trillion Number of Deals: 489 deals Syndicated loan arrangement requires a high level of coordination capabilities to promote cooperation among multiple financial institutions. Mizuho is in the top class of Japanese institutions regarding its syndication specialist staff and investor network. Utilizing those strengths, Mizuho has maintained the top position in syndicated loan arrangements in Japan for six consecutive fiscal years, with a 38.5% share in the league table for fiscal 2014. This is an overwhelmingly strong position, as Mizuho’s market share is 9.8 percentage points greater than that of the No.2 institution. 4 The number of M&A* transactions among Japanese companies as well as among companies based in different countries is trending upward. By means of concerted collaboration among its group companies in Japan and overseas and drawing on its high levels of specialized expertise and abundant knowledge, Mizuho earned the No.1 position in M&A advisory deals involving Japanese companies during fiscal 2014. * Corporate mergers and acquisitions No.1 in Number of Announced M&A Deals Involving Japanese Companies Number of Deals: 167 Deals Amount: ¥3.75 trillion 5 Environment-related Funding: Approx. ¥626 billion (balance as of the end of fiscal 2014) Heartful Loans and Heartful Private Placement*: Approx. ¥91 billion (balance as of the end of fiscal 2014) Mizuho considers the provision of financial support for its customers’ environmental and social consideration-based initiatives to be a part of its social mission as a financial institution. We are proactively promoting business that contributes to the sustainable development of society. * Loans and private placements for companies offering products and services for and promoting employment among the elderly or disabled 6 Mizuho supports financial education both in Japan and overseas, based on the belief that it is essential for children, who carry on our future, to have a deep understanding of finance in order to live independently in an increasingly complex and globalized society. Participants of Mizuho’s Financial Education Programs: Approx. 41,000 participants (fiscal 2006-2014) 7 Editorial Policy Besides financial information, this Integrated Report of Mizuho and its goal of being “the most trusted finan- includes information regarding such subjects as corpo- cial services group with a global presence and a broad rate identity, corporate strategies, and ESG (environ- customer base, contributing to the prosperity of the ment, society, and governance). The report presents world, Asia, and Japan.” information on Mizuho’s efforts related to strategies, This report serves as an annual report for the disclo- governance, corporate culture, and other subjects sure of key financial and business results, and it also along with information on how those activities are lead- incorporates corporate social responsibility (CSR) dis- ing to the creation of value for Mizuho and the society closure functions that were previously carried out over the short-, medium-, and long-terms. It was edited through the issuance of separate CSR Report. with the intention of providing stakeholders with concise More-detailed information on CSR activities is posted and clear explanations in a story-like form. on Mizuho’s website, so readers are invited to utilize this We hope this report will further improve understanding report in conjunction with the website. Guidelines Referred To Scope of the report International Integrated Reporting Council’s International Inte- Period covered: This report covers the period from April 1, grated Reporting Framework (published on December 2013) 2014 to March 31, 2015. However, it also includes some information after April 2015. Scope covered: In principle, MHFG and its subsidiaries and Publication Information affiliates MHFG: Mizuho Financial Group Date of issue: September 2015 MHBK: Mizuho Bank Next scheduled publication date: September 2016 MHTB: Mizuho Trust & Banking MHSC: Mizuho Securities Inclusion in Socially Responsible Investment (SRI) Index (As of March 2015) SRI is an investment approach that takes into consideration not only approaches to finance but also approaches to social responsibilities of companies. Mizuho is a component of both the global SRI index “FTSE4Good Global Index” and “Morn- ingstar Socially Responsible Investment Index” in Japan. Strengthening Management Foundations on page 85 for participation in external initiatives All figures contained in this report are calculated using accounting principles generally accepted in Japan (“Japanese GAAP”). Forward-Looking Statements This Integrated Report (Annual Review) 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 guar- antee 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; our ability to implement our Medium-term Busi- ness 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”). In addition, information regarding market developments after March 31, 2015 and their effects on our financial condition and results of operations is included in the report on Form 6-K furnished to the SEC on July 24, 2015 containing financial information for the first quarter of this fiscal year under accounting principles generally accepted in Japan. These reports are