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Ar2004 Mhfg All.Pdf What kind of financial institution is the Mizuho Financial Group? The Mizuho Financial Group is Mizuho Financial Group, Inc. (MHFG: financial holding company) a comprehensive financial How did the group perform in Banking and Securities Business Sector services group that precisely Corporate Revitalization fiscal 2003? Net Income (MHFG) and swiftly meets its Mizuho Holdings, Inc. (MHHD: intermediate holding Financial subsidiaries for (billions of yen) company for banks and securities subsidiaries) corporate revitalization 500 customers' diverse financial For fiscal 2003, the group recorded consolidated ordinary Fiscal 2002 Mizuho Corporate, Ltd. 0 needs through the expertise Mizuho Corporate Mizuho Securities profits of ¥896.4 billion and net income of ¥406.9 billion. Fiscal 2003 Bank, Ltd. (MHCB) Co., Ltd. (MHSC) possessed by and the close Shinko Mizuho Global, Ltd. This was a significant improvement compared to our net (500) Securities collaboration of its group Mizuho Bank, Ltd. Mizuho Investors Co., Ltd. loss in the previous fiscal year. (1,000) Securities Co., Ltd. (MHBK) Mizuho Project, Ltd. (MHIS) The principal factors contributing to the improvement in companies which includes (1,500) Mizuho Corporate Bank, profitability were higher non-interest income, reductions in Trust and Asset Management Sector (2,000) primarily serving large expenses and credit-related costs, and gains corporations and overseas Mizuho Trust & Banking Co., Ltd. (MHTB) Mizuho Asset, Ltd. on the sale of securities. 3 (2,500) page corporations, and Mizuho Trust & Custody Services Bank, Ltd. (TCSB) Advisory company for Bank, dealing primarily with corporate revitalization individuals, small and medium- Asset management companies Dai-Ichi Kangyo Asset Management Co., Ltd. (DKA) Mizuho Advisory, Inc. sized enterprises, and middle Fuji Investment Management Co., Ltd. (FIMCO) DLIBJ Asset Management Co., Ltd. (DIAM) Is the group's market corporations as well as What is the group's core business strategy? Strategic Subsidiaries restructuring efforts securities, trust banking and We plan to drastically increase our earning power by focusing on Credit card company asset management companies. UC Card Co., Ltd. progressing? the strategic plans of each group company that are formulated Research institution for each customer segment and business area, as well as by Mizuho Research Institute Ltd. We realized a significant reduction of ¥108.6 billion in expenses. This was strengthening synergies among group companies. Information & technology DKB Information Systems Inc. (DKIS) accomplished by proceeding with Fuji Research Institute Corporation (FRIC) Mizuho Corporate Bank will further strengthen its “originate to page 6 IBJ Systems, Limited (KSD) restructuring plans including reviewing distribute” business model based on asset turnover with loan Venture capital compensation and benefits for senior 20 Mizuho Capital Co., Ltd. syndication as its core, and also continuously offer page executives and employees, reducing the sophisticated and multi-faceted financial solutions number of employees, closing and to customers. page10 consolidating duplicate domestic branches, and selling the head office Mizuho Bank will fortify its business in the individual customer buildings of Mizuho sector by strengthening its capability to provide financial consulting Has the group made progress in resolving its Corporate Bank and 3 services, reinforcing marketing in the housing loan business and page utilizing its customer base by launching Mizuho NPL Balance and NPL Ratio Mizuho Bank. page9 non-performing loan issue? Mileage Club, a new membership service. (Claims for Special Attention or Worse) page 14 (the Three Banks) General & Administrative Expenses As a result of implementing corporate (the Three Banks) (trillions of yen) (%) (billions of yen) Mizuho Securities, Mizuho Trust & Banking and other group 7 7 1,000 revitalization projects and removing non- companies will continue to enhance their expertise and 6 6 performing loans (NPLs) from their balance 900 strengthen their strategies while maximizing synergies 5 5 sheets, the Three Banks reduced their through dynamic collaboration with the group 4 4 800 18 outstanding balance of NPLs to ¥3,191.0 companies. page 3 3 billion at the end of fiscal 2003 bringing 700 2 2 the group's NPL ratio to 4.4%. 100 1 1 page7 page 22 0 0 4 0 page September March March Fiscal 2002 Fiscal 2003 2002 2003 2004 *Figures are described as follows: MHFG: Mizuho Financial Group (consolidated) The Three Banks: Mizuho Corporate Bank + Mizuho Bank + Mizuho Trust & Banking + their financial subsidiaries for corporate revitalization (non-consolidated) Financial Highlights of Mizuho Financial Group, Inc. (Consolidated) Millions of yen Thousands of U.S. dollars For the Fiscal Years ended March 31, 2004 2003 2004 Total Income ¥ 3,342,957 ¥ 3,441,810 $ 31,647,800 Total Expenses 2,461,716 5,703,982 23,305,088 Income (Loss) before Income Taxes and Minority Interests 881,240 (2,262,172) 8,342,712 Net Income (Loss) 406,982 (2,377,172) 3,852,902 Cash Dividends* 77,748 22,147 736,045 *Non-consolidated basis. Millions of yen Thousands of U.S. dollars At March 31, 2004 2003 2004 Total Assets ¥ 137,750,091 ¥ 134,032,747 $ 1,304,081,143 Securities 32,071,624 23,816,574 303,622,311 Loans and Bills Discounted 66,205,868 69,210,035 626,771,450 Deposits 77,487,475 72,222,642 733,574,510 Total Shareholders' Equity ¥ 3,644,396 ¥ 2,861,066 $ 34,501,524 Yen U.S. dollars For the Fiscal Years ended March 31, 2004 2003 2004 Per Share of Common Stock Net Income (Loss) ¥ 36,153.27 ¥ (254,524.65) $ 342.26 Cash Dividends per Share* Common Stock 3,000 — 28.40 Preferred Stock First Series Class I Preferred Stock 22,500 22,500 213.01 Second Series Class II Preferred Stock 8,200 8,200 77.63 Third Series Class III Preferred Stock 14,000 14,000 132.54 Fourth Series Class IV Preferred Stock 47,600 47,600 450.63 Sixth Series Class VI Preferred Stock 42,000 42,000 397.61 Seventh Series Class VII Preferred Stock 11,000 11,000 104.14 Eighth Series Class VIII Preferred Stock 8,000 8,000 75.74 Ninth Series Class IX Preferred Stock 17,500 17,500 165.67 Tenth Series Class X Preferred Stock 5,380 5,380 50.93 Eleventh Series Class XI Preferred Stock 20,000 165 189.34 Twelfth Series Class XI Preferred Stock 2,500 21 23.67 Thirteenth Series Class XIII Preferred Stock 30,000 247 284.01 *Non-consolidated basis. At March 31, 2004 2003 Capital Adequacy Risk-based Capital Ratio (BIS Capital Ratio) 11.35% 9.53% Ratings R&I JCR Moody's Standard & Poor's Fitch Long Term Short Term Long Term Short Term Long Term Short Term Long Term Short Term Long Term Short Term Mizuho Financial Group, Inc. A– a–1 —— —— —— —— Mizuho Holdings, Inc. A– a–1 —— —— —— —— Mizuho Corporate Bank, Ltd. A– a–1A— A3 P–1 BBB+ A–2 BBB+ F2 Mizuho Bank, Ltd. A– a–1A— A3 P–1 BBB+ A–2 BBB+ F2 Mizuho Securities Co., Ltd. A– a–1AJ–1 —— —— —— Mizuho Trust & Banking Co., Ltd. A– a–1A– — A3 P–1 BBB+ A–2 BBB+ F2 (as of July 5, 2004) Mizuho Financial Group Annual Report A Message from the President & CEO of Mizuho Financial Group, Inc. Moving from a Year of Achievement to a Year of Proving the True Value of Mizuho 2 Mizuho Corporate Bank, Ltd. Providing Solutions that Will Contribute to Higher Corporate Value for Customers 10 Mizuho Bank, Ltd. Business with Individuals, Small and Medium-Sized Enterprises, Middle Market Corporations, and Local Governments 14 Securities, Trust and Asset Management Business Strategies 18 Advanced Financial Services of Mizuho Business Outline of Mizuho 20 Targeting Businesses through Customer Segmentation 22 Providing Cutting-Edge Solutions Targeting SMEs and Middle Market Corporations Approaches to Individual Customers Business Results Highlights of Mizuho 32 Community Activities and Environmental Awareness of Mizuho 34 Management Structure of Mizuho 36 Internal Control Systems of Mizuho 39 Financial Analysis of Mizuho 51 Financial Data of Mizuho Financial Group, Inc. 85 Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries 133 Senior Executives of Mizuho 144 Office Network of Mizuho 145 Investor Information on Mizuho Financial Group, Inc. 147 Disclosure Policy of Mizuho 148 A Message from the President & CEO of Mizuho Financial Group, Inc. Major Improvements in Profitability For fiscal 2003 (ended March 31, 2004), the group recorded consolidated ordi- nary profits of ¥896.4 billion and net income of ¥406.9 billion. This was well above initial targets and a significant improvement compared to our net loss in the previous fiscal year. We resumed payment of cash dividends on common stocks of ¥3,000 per share, and, as in fiscal 2002, we paid the prescribed divi- dends on preferred stocks. Moving from a Year of Achievement to a Year of Proving the True Value of Mizuho Net Income (MHFG) The key to this major improvement lies in our developing a range of policies Terunobu Maeda (billions of yen) 406.9 500 President & CEO to reform the group's management in fiscal 2002, such as implementing Fiscal 2002 Mizuho Financial Group, Inc. 0 realignments in the group's corporate structure, taking major steps to deal with Fiscal 2003 outstanding financial issues, and raising more than ¥1 trillion in new capital. (500) Furthermore, we designated fiscal 2003 as a year of achievement and worked (1,000) Last year we made a promise. The promise was that fiscal 2003 would be the year of achieve- to augment our capability to provide comprehensive financial services, strengthen (1,500) ment for Mizuho. This followed on from the strong foundation we created in fiscal 2002 with earning power, and further improve the group's financial position. As a result, realignments in the group's management systems and the steps we took to address financial (2,000) we were able to realize a significant improvement in the group's profitability.
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