Summary of Financial Results for the First Quarter of Fiscal 08 <Under Japanese GAAP> July, 08
Contents Overview of Income Statement Overview of Balance Sheet Overview of Loans Non-interest Income P. P. P.4 P.5 Financial Soundness () Financial Soundness () P.6 P.7 Reference: Mizuho Securities P.8 FG: Mizuho Financial Group, Inc. BK: Mizuho Bank, Ltd. TB: Mizuho Trust & Banking Co., Ltd. SC: Mizuho Securities Co., Ltd. Definitions Banks: Aggregate figures for BK and TB on a non-consolidated basis Group aggregate: Aggregate figures for BK, TB, SC and other major subsidiaries on a non-consolidated basis
Overview of Income Statement Summary of Financial Results Reference: <Exchange rate (TTM)> Jun-8: USD = JPY 0.54 (Jun-7: USD = JPY.00) Net Income Attributable to FG for Q FY08 was JPY6.0bn, 8% progress against the earnings plan of JPY 570.0bn for FY08 Consolidated Net Business Profits + Net Gains related to ETFs and others increased by JPY 44.6bn YoY, mainly due to the improvements in Customer Groups both inside and outside Japan Reversal in Credit-related Costs and Net Gains related to Stocks, due to disposal of cross-shareholdings, also contributed to Net Income Attributable to FG Consolidated Consolidated Gross Profits + Net Gains (Losses) related to ETFs and others G&A Expenses (excluding Non-Recurring Losses and others) 4 Consolidated Net Business Profits + Net Gains (Losses) related to ETFs and others Consolidated Net Business Profits Credit-related Costs Net Gains (Losses) related to Stocks - Net Gains (Losses) related to ETFs and others Net Gains (Losses) related to Stocks Ordinary Profits Net Income Attributable to FG 4 Q FY08 (Apr-Jun) Changes from Q FY07 505.0 5.0-57.6-6. 4.9 44.6.6 9..5. 50.9.6 80. 8.0 09. 66.7 6.0 4.7. Quarterly Profit Attributable to Owners of Parent. Aggregate of Net Gains related to ETFs ( Banks) and Net Gain on Operating Investment Securities (SC Consolidated) was JPY 9.bn (+JPY 5.bn YoY). G&A Expenses - Non-Recurring Losses - Amortization of Goodwill and others 4. Consolidated Gross Profits - G&A Expenses (excluding Non-Recurring Losses) + Equity in Income from Investments in Affiliates and certain other consolidation adjustments Banks SC Difference b/w Consolidated and Banks+SC Q FY08 (Apr-Jun) Changes from Q FY07 Gross Profits 5 + Net Gains (Losses) related to ETFs 5.4 # 44.0 Customer Groups 75.9 4.4 Trading 80.0 0.5 G&A Expenses (excluding Non-Recurring Losses) -6.5.9 Net Business Profits 5 + Net Gains (Losses) related to ETFs 6.8 46.0 Net Business Profits 9.8 4.4 Credit-related Costs 4.7 9. Net Gains (Losses) related to Stocks 5 - Net Gains (Losses) related to ETFs 47.6-0.5 Net Gains (Losses) related to Stocks 7.6. Ordinary Profits 75.0 6. Net Income 0.. Net Operating Revenues SG&A Expenses Ordinary Income Net Income Attributable to SC Asset Management One 7 Major Overseas Subsidiaries (BK) Mizuho Credit Guarantee Other Subsidiaries & Consolidation Adj. Difference in Net Income b/w Consolidated and Banks+SC 7.9 5.5-64.7 -. 8.7.4 8.0.7.6 -.4 8.0 -.8. -. 8.9..8 6.8 5. Including Net Gains related to ETFs ( Banks) of JPY 5.0bn (+JPY.6bn YoY) 6. New management accounting rules were applied at the beginning of FY8. Figures for FY7 are recalculated based on the new rules 7. Including quarterly Net Income of Mizuho Securities USA of JPY.8bn 6 6
Overview of Balance Sheet Balance Sheet (as of Jun-8) Total Assets: JPY 07tn (+JPY.5tn) Loans: JPY 80tn (+JPY.tn) Deposits and Negotiable Certificates of Deposit (NCD): Consolidated Figures in ( ) represent changes from Mar-8 Loan Balance Period-end Balance Outside Japan Japanese Gov., etc. Individuals Jun-7 7.4 +JPY.8tn from Jun-7 +JPY.0tn from Mar-8 7.8 7. 7.9 7.9 7.8 7. Banks 75. 9. 9. 7.8 9. 9. 9.4....9..4..0.6..0 0.7 0.4 0. Securities: JPY tn (-JPY 0.5tn) JGBs: JPY 4tn (-JPY 0.7tn) Foreign Bonds: JPY 8tn (+JPY 0.0tn) Stocks: JPY 4tn (+JPY 0.0tn) Other Assets: JPY 9tn (+JPY.7tn) JPY 7tn (+JPY.4tn) Other Liabilities: JPY 60tn (+JPY.tn) Net Assets: JPY 9tn (-JPY 0.tn) In Japan.4.4 0.9.7.8.5 8.5 8.9 8. 9.0 8.8 8.9 5.0 Sep-5 Mar-6 Sep-6 Mar-7 Sep-7 Mar-8 Jun-8 Reference: Non-JPY denominated Loans and Deposits structure 4 Period-end Balance (USD bn) SMEs Large Corp., etc. 68% Non-JPY denominated Loans Non-JPY denominated Customer Deposits Proportion of Deposit to Loan 75% 7% BK, management account 69% 4.9 4. 49.5 64.9 58.9 8.0 8.6 8. 5, 6 5, 6. Excluding loans to FG. Banking account. Housing and Consumer Loans. Calculated by deducting Housing and Consumer Loans from Loans to SMEs and Individual Customers Mar-6 Mar-7 Mar-8 Jun-8 4. BK (including the subsidiaries in China, the US, the Netherlands, Indonesia, etc.) 5. Including Non-JPY loans and deposits in Japan 6. Changes in management account rules in FY8. Figures from Mar-6 to Mar-8 are recalculated based on the new rules
Overview of Loans Loan Balance in Japan Loan and Deposit Rate Margin in Japan Banks Average Balance Q FY7 50.9 +JPY 0.5tn YoY (%) Returns on Loans and Bills Discounted a Loan and Deposit Rate Margin a - b Costs of Deposits and Debentures b Banks +JPY 0.tn from H FY7 50.7 5.5 50.0 50.7 50.9 5. 5.4.05.0.0 0.98 0.94 0.9 0.90 0.86 0.85 0.84 0.89 0.86 0.84 0.8 0.04 0.0 0.0 0.00 0.00 0.00 0.00 H FY5 H FY5 H FY6 H FY6 H FY7 H FY7 Q FY8 Loan Balance outside Japan Average Balance (USD bn) EMEA Americas Asia 95. 9. 08.0 4. 0.8 6.0.9 5.0 40.0 44. 4.8 4.7 67.5 70. 7. 75. 70.8 4. 49.4 69. 69.6 98.4 0.8 00.8 0. 0.4. 5., 4 Q FY7 6.4 BK, management account +USD 7.9bn YoY H FY5 H FY5 H FY6 H FY6 H FY7 H FY7 Q FY8 Loan Spread (%) 0.9 0.9 0.9 0.89 0.89 0.90 0.75, 4 Outside Japan Loans to Middle Market Firms & SMEs in Japan Loans to Large Corporate Banking Customers in Japan 0.7 0.70 BK, management account 0.87 0.66 0.64 0.6 0.6 0.54 0.5 0.5 0.50 0.48 0.49 0.48 H FY5 H FY5 H FY6 H FY6 H FY7 H FY7 Q FY8 +USD.4bn from H FY7 H FY5 H FY5 H FY6 H FY6 H FY7 H FY7 Q FY8. Excluding loans to FG and the Japanese Government, etc. Banking account. Domestic operations, excluding loans to financial institutions (including FG) and the Japanese Government, etc.. BK (including the subsidiaries in China, the US, the Netherlands, Indonesia, Malaysia, Russia, Brazil and Mexico) 4. Changes in management account rules in FY8 (Figures from H FY5 to H FY7 are recalculated based on the new rules) 4
Non-interest Income Non-interest Income from Customer Groups Group aggregate, management account (rounded figures) BK (in Japan) BK (outside Japan) Trust & Asset Management Securities Others 6 +JPY 8bn YoY 9 9 80 84 66 5 8 4 7 8 4 44 45 49 4 4 Q FY6 Q FY7 Q FY8 Reference: Breakdown of BK (Japan) Non-interest Income Solution Business Related Investment Trusts & Individual Annuities Settlement & Foreign Exchange Others 80 0 66 7 4 4 4 9 Q FY6 Q FY7 Q FY8 Banks (left) Reference: Investment Products SC Retail & Business Banking Division (right) Amount of Individual Annuities Sold Amount of Equity Investment Trusts Sold Amount of Japanese Bonds Sold Amount of Investment Trusts Sold (excl. MMF) Amount of Foreign Bonds Sold Balance of Investment Products Assets Under Management. 5.59 0. 5.5 5.49 5.7 0.0 0.06 0.0 0.09 0. 0.09 Q FY6 Q FY7 Q FY8 Group aggregate, management account (rounded figures) 0.7 0.6 0.4 0. 84 0 7 8 0. 0.4 0. 0.5 0.5 Q FY6 Q FY7 Q FY8. Changes in management account rules in FY8. The original figures before the recalculation were Q FY6: JPY bn and Q FY7: JPY 9bn. Total of Individual Annuities, Investment Trusts (excl. MMF) and non-jpy deposits 5
Financial Soundness () Disclosed Claims under the FRA Credit-related Costs, Banks Banks Disclosed Claims under the FRA NPL Ratio Credit-related Costs Credit-related Costs Ratio 5. 8bps 0.8 0.84 4.7 0.55 0.5 bps.00%.00% -bps 0.66% 0.6% -6.7-5bps -49. Mar-6 Mar-7 Mar-8 Jun-8. Financial Reconstruction Act. Banking account + Trust account FY5 FY6 FY7 Q FY8. Ratio of Credit-related Costs against total claims 6
Financial Soundness () Unrealized Gains/Losses on Other Securities JGB Portfolio, 4 Banks, acquisition cost basis Others Japanese Bonds Japanese Stocks,855.,784.8. 4.7,95.9 5.4 Consolidated,00.6 Treasury Discount Bills Floating-rate Notes Medium & Long-term Bonds 5.6 0.5. 0.6.6 0..4..7 4.4 0.6 0.6 0.6 7.8 9. 8.9 Mar-6 Mar-7 Mar-8 Jun-8 6.5 Ave. Remaining Period,099.6.5y rs.4y rs.5y rs.4y rs,60.9,88.7,984. Japanese Stock Portfolio Mar-5,96.9 -JPY 4.bn from Mar-5 Consolidated, acquisition cost basis,847.,687.5,564.8,54.5-75.0-6.7 -. -94.9 Mar-6 Mar-7 Mar-8 Jun-8 Mar-6 Mar-7 Mar-8 Jun-8. Other Securities which have readily determinable fair values. Including bonds with remaining period of one year or less. Excluding floating-rate notes 4. The base amount to be recorded directly to Net Assets after tax and other necessary adjustments 7
Reference: Mizuho Securities Net Income Attributable to SC Consolidated Retail Related Results Net Inflow of Client Assets Sales of Equity Investment Trusts (rounded figures) (rounded figures) 50 64 4 0 409 6 56 45 5 5..8 6.9.6 8.0 4 Q FY7 Q FY7 Q FY7 4Q FY7 Q FY8. Quarterly Profit Attributable to Owners of Parent Overview of Net Operating Revenues Commissions 7.6 8.9. Net gain on trading 7. 6. -.0 Net gain (loss) on operating investment securities 0.5 4..7 Net financial Income.0.5.5 Net Operating Revenues 67.4 7.9 5.5 Reference: Consolidated Q FY7 Q FY8 Changes from Q FY7 Ordinary Profits 6. 8.7.4 Ordinary Profits (incl. MSUSA) 9.... Simple aggregate of Ordinary Profits of SC Consolidated and Mizuho SC USA (MSUSA). Ordinary Profits of MSUSA are in internal management basis, and the Q FY8 figure includes Ordinary Profits of Mizuho Capital Markets Q FY7 Q FY7 Q FY7 4Q FY7 League Tables Q FY8 Q FY7 Q FY7 Q FY7 4Q FY7. Domestic sales (including privately placed investment trusts, but excluding reinvested dividends) M&A Adv isory f or Announced Deals st 9 Deals 5 Total Equity Underwriting Worldwide 5 th 7.7% Market Share 6 Total Japan Publicly Of f ered Bonds st 9.% Market Share 7 ABS Lead Manager st 6.% Market Share 8 4 Americas DCM 0 th.7% Market Share Q FY8 Apr., 08 Jun. 0, 08 4. Number of deals basis. Any Japanese involvement, excluding real estate deals. Source: Thomson Reuters 5. Underwriting amount basis, pricing date basis. Deals including initial public offering, public offering and convertible bonds, including REITs. Source: Thomson Reuters 6. Underwriting amount basis, pricing date basis. Deals including straight bonds, investment corporation bonds, Zaito agency bonds, municipal bonds (lead manager method only), Samurai bonds and preferred securities, and excluding self-led bonds. Source: I-N Information Systems 7. Transaction amount basis, settlement date basis. Source: Thomson Reuters 8. Bonds with issuance amount of USD 50mm and above issued by investment grade corporations in the Americas. Source: Dealogic 8
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