Earnings Plan
Earnings Plan for FY2012 (As of May 15, 2012)
(Figures below are on a consolidated basis)
Fiscal 2012 is the final year of Mizuho's Transformation Program that we announced in May 2010.
Accordingly, we plan Consolidated Net Income for fiscal 2012 to be JPY 500.0 billion as was set forth in the Program.
We plan Consolidated Net Business Profits for fiscal 2012 to be JPY 830.0 billion, a year–on–year increase of JPY 110.8 billion.
Net Business Profits of the 3 Banks for fiscal 2012 are planned to increase from the previous fiscal year, mainly because we plan income from Customer Groups to increase and continue our overall cost reduction efforts to achieve the target level set in Mizuho's Transformation Program, although income from trading segment, which showed a solid performance in the previous fiscal year, is conservatively estimated. We will endeavor to further strengthen profitability, primarily by promoting group collaboration thoroughly among the banking, trust and securities functions in light of turning the three listed group companies into wholly–owned subsidiaries as well as by realizing in advance the synergy effects of the transformation of Mizuho Bank and Mizuho Corporate Bank into 'one bank'.
As for consolidated subsidiaries, we estimate Mizuho Securities to improve its financial performance mainly through the steady implementation of the "Business Foundation Strengthening Program" that was announced in April 2012.
Credit–related Costs on a consolidated basis are planned to be a loss of JPY 110.0 billion, given the continued uncertainty over the global economy, although we continue our detailed business revitalization support to corporate customers.
We estimate Net Gains (Losses) related to Stocks to be JPY 0 (zero), despite our ongoing efforts to reduce our stock portfolio.
| FY2012 (Plan) | Change from FY2011 | |
|---|---|---|
| Consolidated Net Business Profits* | 830.0 | 110.8 |
| Credit–related Costs | −110.0 | −137.7 |
| Net Gains (Losses) related to Stocks | 0.0 | 38.1 |
| Ordinary Profits | 735.0 | 86.4 |
| Net Income | 500.0 | 15.4 |
- *Consolidated Gross Profits − General and Administrative Expenses (excluding Non–Recurring Losses) + Equity in Income from Investments in Affiliates and certain other consolidation adjustments
| FY2012 (Plan) | Change from FY2011 | |
|---|---|---|
| Net Business Profits | 753.0 | 24.8 |
| Credit–related Costs | −100.0 | −124.7 |
| Net Gains (Losses) related to Stocks | 0.0 | 50.3 |
| Ordinary Profits | 580.0 | 2.3 |
| Net Income | 465.0 | 36.8 |
We plan to make cash dividend payments of JPY 6 per share of common stock as annual dividend payments for the fiscal year ending March 31, 2013, unchanged from that in the previous fiscal year, in consideration of the balance between "strengthening of stable capital base" and "steady returns to shareholders." We also plan to make cash dividend payments on preferred stock as prescribed.
Pertaining to the above, we continue to plan to make interim cash dividend payments in order to provide returns to shareholders at a more appropriate timing.
| Annual Cash Dividends per share | o/w Interim Cash Dividends | |
|---|---|---|
| Common Stock | JPY 6 | JPY 3 |
| The Eleventh Series Class XI Preferred Stock | JPY 20 | JPY 10 |
| The Thirteenth Series Class XIII Preferred Stock | JPY 30 | JPY 15 |
This immediate release 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; our ability to implement our Medium–term Management Policy, realize the synergy effects of the transformation into "one bank," 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.co.jp/english/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.
Definition
3 Banks: Aggregate figures for Mizuho Bank, Mizuho Corporate Bank and Mizuho Trust & Banking on a non–consolidated basis.
