A Message from the Group CEO

Turning next to recent economic conditions, a gradual recovery has taken hold in the U.S. economy. Prospects for its continuation, however, are clouded by down–side risk factors, like uncertainties regarding future oil prices, and fiscal austerity measures. In Europe, fiscal problems in some countries have resulted in an economic downturn, and it is extremely difficult to discern the possible impacts of European debt problems on the global economy. Asia, meanwhile, has maintained a relatively high growth rate, but has experienced overall slowing due to the impacts of the European economic downturn and other factors. In Japan, the gradual economic recovery continues owing to the demand for reconstruction from the impact of the Great East Japan Earthquake. Reviewing the initiatives that we took during the second year of Mizuho's Transformation Program which was originally announced in May 2010, as the Medium–term Management Policy of our group, we believe we have made steady progress mainly in enhancing our "profitability" and "financial base" amid such a severe business environment. As regards our Program for Strengthening Front–Line Business Capabilities, we have implemented various measures, including streamlining and rationalizing our corporate management functions and reforming the structure of our IT costs. Furthermore, in view of recent changes in the operating environment, we will continue to endeavor to increase management efficiency.

In the area of CSR, society's expectations from companies for responsible business activities and contribution to realizing sustainable society heighten further, in the context of the issuance of the ISO26000 international guidelines on the social responsibility of organizations and the progress of corporate initiatives that address social issues through business activities. As for financial institutions, in particular, it is expected that they will not only fulfill their public missions but also contribute to the resolution of social issues through financing functions. To promote financing initiatives aimed at realizing a sustainable society in Japan, Mizuho and other concerned financial institutions engaged in numerous rounds of discussions that resulted in the creation of the "Principles for Financial Action towards a Sustainable Society" in October 2011. Mizuho became an official signatory to these principles in November.

The fundamental purpose of a financial institution, I believe, is to help create a better future for its customers and contribute to social and economic development. Mizuho, as a financial institution representing Japan in global financial markets, will spare no effort in fulfilling that purpose and living up to society's expectations.

With the issuance of the ISO26000 standard, Mizuho has reorganized its CSR initiatives into eight areas – "Thoroughly implementing the customer first policy," "meeting social responsibilities through business activities," "environmental initiatives," "support for financial education," "social contribution activities," "creating fulfilling workplaces," "enhancing corporate governance," and "promoting communications." We have designated three of these areas – "environmental initiatives," "support for financial education," and "enhancing corporate governance" – as a particularly high level of attention.

To contribute to the resolution of social issues through its business activities, Mizuho, drawing on its know–how, network, and other resources, is working to support the development of new industry sectors that will contribute to the sustainable growth of the Japanese economy such as the recovery and revitalization of disaster–stricken areas, environmental problems, issues arising from the country's low birthrate and aging population. Outside of Japan, Mizuho is focusing on environmentally and socially conscious infrastructure projects such as smart cities, mainly in the high–growth areas of Asia. Pursuing initiatives aimed at addressing issues like these is the very essence of the fundamental role Mizuho should fulfill. We are committed to applying our expertise and know–how, and striving through our business activities, to continuously and constructively contribute to the formation of a sustainable society.

One form of social contribution we have paid considerable attention to is support for financial education. This is an area in which a financial institution is especially well–suited to undertake initiatives applying the resources of its business activities, and we will continue with our efforts to support financial education and contribute to the sound development of future leaders.

The enhancement of corporate governance is another area we view as a particularly important area of endeavor. Sound corporate governance is essential for contributing to society by fulfilling our role as a financial institution, and as a foundation upon which to pursue our business activities, so we must do everything we can to enhance our corporate governance system. In the last fiscal year, to provide an effective and multifaceted range of financial services directly and speedily to our customers, we set the course of our management policy to establish a new corporate structure and strengthen corporate governance toward the "advanced and integrated group management." More specifically, we decided to turn our trust banking and two securities^* subsidiaries into our wholly–owned subsidiaries in order to maximize our differentiating feature and our advantage as the only financial group in Japan with banks, trust banks and securities companies under one umbrella. We also signed a memorandum of understanding on the merger between Mizuho Securities and Mizuho Investors Securities^* as well as that on the merger between Mizuho Corporate Bank and Mizuho Bank. Over the coming year, we will establish these new corporate structures, strive to facilitate the smooth legal merger and realize the synergies generated from the merger as soon as possible.

Mizuho is determined to make a fresh start by returning to the basics of our "customer first policy" as the core principle of our management. In order to become the most–trusted financial institution, serving society at large, the group will work on various issues as one under our new sub–slogan—"One MIZUHO: Building the future with you."

In addition, placing CSR initiatives as the pillar of our corporate conduct, we believe it is essential that we make the most of Mizuho's uniqueness and strengths in pursuing CSR activities. Through dialog, we have determined what our stakeholders expect of Mizuho, and we will meet their expectations by applying ISO26000 and other international guidelines and drawing on resources throughout the Group to advance initiatives in various areas. We look forward to your ongoing support as we move ahead with these endeavors.