Message from the Chairperson of the Board of Directors

Reflecting on fiscal 2025

For fiscal 2025, Mizuho achieved steady growth in its four domains of focus. Helped also by favorable market tailwinds, including the raising of the Bank of Japan's policy interest rate and the weak yen, its Consolidated Net Business Profits, among other key indicators, hit an all-time high. Nevertheless, I still have to recognize that enhancing a sustainable and stable revenue base unswayed by temporary factors is a critical issue. At Board of Directors meetings, we have held multifaceted discussions regarding Mizuho's strategic direction over the medium to long term, not only reviewing financial indicators and analyzing the underlying factors, but also making comparisons with other global financial institutions.

There has also been steady progress in Mizuho's corporate culture transformation. The engagement and inclusion score targets that appeared among the non-financial KPIs of the medium-term business plan were both reached in the fiscal 2025 employee survey. I view these achievements as a result of management working together to raise awareness of the revised Corporate Identity since it was introduced in 2023 and incorporating the feedback from frontline employees into management policy. I can sense that individual employees' awareness, understanding, and empathy are rising, and that their cross-organizational connections and stance of contributing to both Mizuho's growth and social responsibilities are continuing to take root.

I heard a variety of questions and opinions on issues such as capital efficiency, growth strategy, and governance during a small meeting and lunch reception with institutional investors. This meeting gave me a valuable opportunity to learn firsthand the concerns that institutional investors have and their increased expectations of Mizuho. It has made me once again remember the importance of running the Board of Directors with multiple stakeholders in mind.

Looking ahead to fiscal 2026

Given the increasingly severe business environment, including changes in the competitive landscape in and outside Japan, the emergence of new players, more sophisticated regulations and societal expectations, and increased geopolitical risk, Mizuho will need to further strengthen and solidify its core stable earnings power. To secure a unique competitive edge in such an environment, it is important to communicate a story and message about the kind of financial institution Mizuho is looking to be and the way it will contribute to society. With its high aspiration to contribute to the sustained development of Japan and the rest of the world, backed by its industrial finance DNA, Mizuho is well positioned to engage in ongoing dialogue with customers, investors, employees, and other stakeholders and aim for further growth and transformation in the areas of business and corporate culture. I believe that to realize this aspiration will involve Mizuho demonstrating its raison d'être by not only intensifying efforts in its four business domains of focus but also pursuing initiatives that interconnect these domains. The Board of Directors will monitor efforts to advance this "4+α" strategy, which will build on the organic connections between organizations and employees that have arisen through corporate culture transformation, and will ensure that they lead to further refining of Mizuho's unique competitiveness and ability to create value.

We will continue to hold discussions on reinforcing corporate foundations in areas such as human capital to support business strategy, IT transformation, and stable business operations. In particular, in light of the rapid adoption of AI in society, AI-first business transformation will be essential. The Board of Directors, while supporting management initiatives, will stringently control risk from a governance perspective and promote responsible use of AI.

As Chairperson of the Board of Directors, in order to support management endeavors, I will seek to leverage each director's wide-ranging knowledge and expertise to the maximum extent and create an environment where flexible and constructive discussion is the norm. I am committed to further improving the operation of the Board of Directors as part of driving sustained growth in corporate value.