Mizuho Financial : 19th interim period report to our shareholders

Mizuho Financial Group

19th interim period report to our shareholders

April 1, 2020 to September 30, 2020

(Securities Code 8411)

This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

Forward-looking statements

This material 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 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 5-Year Business Plan and 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 website at www.mizuho-fg.com/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.

Mizuho Financial Group, Inc. is a specified business company under Cabinet Office Ordinance on Disclosure of Corporate Information Article 17-15 clause 2 and prepares interim consolidated and interim non-consolidated financial statements in the second quarter.

Unless otherwise specified, the financial figures used in this material are based on Japanese GAAP.

This material does not constitute a solicitation of an offer for acquisition or an offer for sale of any securities.

Definitions

Mizuho Financial Group: Mizuho Financial Group, Inc. (the holding company)

We/us/our, the group, Mizuho: Mizuho Financial Group, Inc. and its consolidated subsidiaries and affiliates

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Message from the	Financial Results	Dividend	Topic 1	Topic 2	Share
Group CEO					Consolidation

Message from the Group CEO

Becoming even stronger as we look ahead to a post-COVID-19 world

We are swiftly addressing the structural changes occurring in our society, economy and across industries, and are confronting the new challenges that our customers and society will face in a post-COVID-19 world. By providing support as a united group, we will build new partnerships with our customers as we aim to transition to the next generation of financial services.

All of our directors, executive officers and employees will make concerted efforts to enhance our corporate value. To our shareholders, I ask for your continued support to help us succeed in our endeavors.

Tatsufumi Sakai, President & Group CEO

Member of the Board of Directors

Mizuho Financial Group, Inc.

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Message from the	Financial Results	Dividend	Topic 1	Topic 2	Share
Group CEO					Consolidation

Financial Results

Consolidated Net Business Profits increased YoY, due to the steady business performance of both Customer Groups and Markets, achieving 73% of the FY2020 plan of JPY 570.0 billion.

Credit-related Costs were incurred in-and-outside Japan including the proactive record of reserves, and the Credit-related Costs remained at the level of 40% of the FY2020 plan of JPY 200.0 billion.

Profit Attributable to Owners of Parent progressed steadily and achieved 67% of the FY2020 plan of JPY 320.0 billion.

Taking into account the FY2020 H1 results and other factors, we revised our FY2020 plan for Profit Attributable to Owners of Parent upward to JPY 350.0 billion.

■ Highlights of Financial Results (Consolidated)

(JPY billion)		FY2020 H1		YoY
Profit Attributable to Owners of Parent1	215.5			72.1
Consolidated Net Business Profits	2	419.4		-
		+78.5
Credit-related Costs		-	81.2		-	69.9
Net Gains (Losses) Related to Stocks	50.4
				105.8
					-
Common Equity Tier 1 Capital Ratio		-		-	0.61%
		11.57%

Note 1: Interim Profit Attributable to Owners of Parent.

Note 2: Consolidated Gross Profits - G&A Expenses (excluding Non-Recurring Losses) + Equity in Income from Investments in Affiliates and certain other consolidation adjustments (including Net Gains (Losses) related to ETFs and others).

• Progress of the Financial Targets and Other Key Indicators under the 5-Year Business Plan

• Consolidated ROE3

	Before recording
	one-time loss					Approx. 7-8%
Financial	7.4%
	5.5%
Targets
	1.2%		FY2020
		Original
		Plan
			4.0%
	FY2018	FY2020	FY2023
			H1

• Common Equity Tier 1 (CET1) capital ratio target level4

Other Key	Lower end of the
9-10% range
Indicators	8.8%
8.2%
Mar. 2019	Sep. 2020

• Consolidated Net Business Profits2 (JPY billion)

										Approx.
Before recording										900.0
one-time loss			FY2020
603.1			Original
		Plan
	570.0
	419.4
408.3
FY2018								FY2023
FY2020
				H1

• Reduction of cross-shareholdings5 (JPY billion)

1,419.8
			1,211.5						Reduction
									of 300.0
					-208.3
				Progress
			69%
Mar. 2019	Sep. 2020	Mar. 2022

Note 3: Excluding Net Unrealized Gains (Losses) on Other Securities.

Note 4: Basel III finalization fully-effective basis excluding Net Unrealized Gains (Losses) on Other Securities; including the effect of partially fixing unrealized gains on stocks through hedging transactions.

Note 5: Other Securities which have readily determinable fair market values, acquisition cost basis.

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Message from the	Financial Results	Dividend	Topic 1	Topic 2	Share
Group CEO					Consolidation

Dividend

FY2020 Interim Cash Dividend1: JPY 3.75

Policy to return profits to shareholders

We are maintaining the current level of dividends for the time being while aiming to strengthen our capital base further to enhance returns to shareholders at an early stage.

Note 1: Record date was September 30, 2020 (pre-share consolidation)

	95.2	215.5	Dec. 4, 2020 Dec. 7, 2020
JPY	B JPY	B

• We will continue to accumulate capital and aim to transition to capital utilization phase at an early stage.

Outlook for Common Equity Tier 1 (CET1) capital ratio (Basel III finalization fully-effective basis)2

Investment for		Target CET1
future growth /	Avoided decline in
capital ratio
		returns to			capital ratio even under
	shareholders		COVID-19 pandemic

9.0%

Sep. 2020: 8.8%

Lower end of the 9-10% range

Improve CET1 capital ratio through promotion of effective use of assets and capital accumulation

Capital accumulation is in
good progress, exceeding		Stress resistance
the original plan
				level
	Initial expectation when	Ongoing risk of further COVID-19 outbreak
	5-Year Business Plan was	causing decline in CET1 capital ratio
		made

8.0%	Maintain current level of dividends	Capital utilization phase

Note 2: Excluding Net Unrealized Gains (Losses) on Other Securities; including the effect of partially fixing unrealized gains on stocks through hedging transactions.

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Message from the	Financial Results	Dividend	Topic 1	Topic 2		Share
Group CEO		Consolidation

Initiatives in Response to COVID-19

• Financial Support for Customers in the World Impacted by COVID-19

Over JPY 1 trillion

Fund Name

• Mizuho COVID-19 Support Fund (No.1)
• Mizuho COVID-19 Support Fund (No.2)
• Mizuho Post-COVID-19 Assist Fund (Growth Strategy)
• Mizuho Private Placement Bond Fund responding to COVID-19
• Mizuho Post-COVID-19 Assist Fund (Business Succession)
• Mizuho Life Science Fund No. 1

Balance Trend (JPY trillion)

Over JPY 5 trillion

Mar. 2020 Apr. 2020 May. 2020 Jun. 2020 Jul. 2020 Aug. 2020 Sep. 2020

■ Establishment of J-Coin Fund

We established a fund utilizing the J-Coin Platform and supported organizations and individuals affected by COVID-19.

Flow of support through J-Coin Fund

Students

Local communities / Regional revitalization

Others

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Message from the	Financial Results	Dividend	Topic 1		Topic 2	Share
Group CEO		Consolidation

Sustainability Initiatives

By promoting sustainability initiatives, we aim to operate our business in a way that considers the creation of value for our various stakeholders and improve our corporate value through continued, stable growth for the entire group, thus contributing to the achievement of the Sustainable Development Goals (SDGs).

Sustainability for Mizuho

We will enhance our climate change initiatives, aiming for the

realization of a carbon neutral society.

Supporting Initiatives to Achieve	Sustainable Finance and
Carbon Neutrality through
Environmental Finance Targets
Engagement

Expanding the Scope of our Engagement Targets

Target

Companies

Industry

Types

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Message from the	Financial Results	Dividend	Topic 1	Topic 2	Share
Consolidation
Group CEO

Share Consolidation

Pre-		Post-
consolidation		consolidation

• The Trading Unit* of our shares now falls within the desirable range of JPY 50,000 to JPY 500,000, which is designated by the Tokyo Stock Exchange's Securities Listing Regulations.

*Trading Unit: The acceptable quantity of shares for trading on the Tokyo Stock Exchange.

• The share consolidation enabled us to set the amount of dividend per share more precisely, which also enhanced the flexibility of our capital management.

Will the amount of dividends be reduced as a result of the share consolidation?

The share consolidation should have no impact on the total amount of dividends for shareholders

Transactions of shares of less than one Trading Unit may be subject to restrictions. We are offering the program for shareholders to sell back shares of less than one Trading Unit and the program to purchase additional shares up to one Trading Unit in order to eliminate the inconvenience in connection with transactions of shares of less than one Trading Unit. Please contact a securities company at which you have an account to hold our shares or our shareholder registry administrator.

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