Global Corporate Company

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As a strategic partner supporting our clients’ global businesses, we will leverage our extensive international network and our group-wide capabilities to provide financial solutions and achieve continuous growth.

Basic policy

We will leverage our extensive network in Asian economic zones and our presence in the US capital markets to provide comprehensive financial solutions to clients in each region. As the business environment grows ever more complex due to factors such as volatile markets, shifting supply chains, and greater attention to the Sustainable Development Goals (SDGs) and environmental, social, and governance (ESG) issues, we will be a strategic partner supporting our clients’ global business development and business structure transformation.

We will build a stable and profitable business portfolio to enable continuous growth while maintaining an awareness of ongoing constraining factors, including the international regulatory environment and non-JPY currency funding, and we will provide clients with sophisticated financial services based in stable business operations.

Strengths

  • Extensive international network centered on Asia
  • Firm presence in US capital markets
  • Robust client base and strong lending portfolio

External business environment
Risks and opportunities

Risks

  • Prolonged effects of the COVID-19 pandemic
  • Uncertainty in global affairs due to rising geopolitical risk and other factors
  • Changes in the market environment due to shifts in monetary policy such as central bank interest rate hikes

 

Opportunities

  • Varied capital raising needs responding to rising interest rates
  • Diversifying settlement and foreign exchange needs responding to supply chain shifts
  • Business structure transformation needs looking to the SDGs, ESG issues, and a post-pandemic world

Review of fiscal 2021

In fiscal 2021, the economy began to recover from the stagnation caused by the impact of the COVID-19 pandemic. Amidst the recovery, we steadily captured the diverse financial needs of clients in each region, and we grew our interest income as a result of attaining a higher loan balance and improved spread. We also expanded our business in US capital markets and recorded our highest Gross Profits and Net Business Profits for the fourth fiscal year running, exceeding the target in the 5-Year Business Plan. We are planning to achieve Gross Profits and Net Business Profits above the 5-Year Business Plan target in fiscal 2022 as well.

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  1. Gross Profits and Net Business Profits include Net Gains related to ETFs.
  2. Results are based on FY2021 management accounting rules, targets are estimates based on FY2022 management accounting rules.

Progress on key strategies

Enhancing current business areas

We are leveraging our global network and focusing our corporate resources on about 300 blue-chip corporate groups worldwide, which have stable credit and potential for ancillary transactions, via our Global 300 strategy. In doing so, we are endeavoring to bolster stable revenue and diversify our revenue sources. We are also working to strengthen risk management in light of changes to industry structures brought about by financial market fluctuations and geopolitical risk, and we are building a portfolio with strong stability and profitability.

(Related materiality areas)

  • Industry development & innovation
  • Sound economic growth

League tables

  FY2019 FY2020 FY2021
Americas DCM1

excluding US banks

Share
No. 9

No. 3

3.3%
No. 9

No. 3

3.4%
No. 8

No. 2

3.5%
Americas Non-IG LCM/DCM2

excluding US banks

Share
No. 25

No. 11

1.0%
No. 17

No. 8

1.4%
No. 21

No. 10

1.4%

1. Bonds issued by investment-grade companies, fee basis. Source: Dealogic.

2. Loans issued by investment-grade companies, fee basis. Source: Refinitiv.

 

Expanding into new business domains

As outlined in the 5-Year Business Plan, we are continuing to focus on transaction banking in Asia and business in the US capital markets. In response to interest rate hikes, as we make ourselves more attractive to clients, we will also capture capital flows through investment in and development of different types of products, ultimately expanding our revenue. In US capital markets, we will bolster our hedging functions for market trends and assorted risks, broaden our client base and product line-up, and deepen our business relationships.

(Related materiality areas)

  • Industry development & innovation
  • Sound economic growth
  • Environment & society

 

Transaction banking

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Addressing structural issues

In light of constraints including the international regulatory environment and non-JPY currency funding, by shifting corporate resources from areas with little potential for profit to high-profitability businesses and growth fields, we will increase the quality of our business portfolio.

Further, we will apply digital technology to go beyond simply consolidating and instead streamline operations across geographical boundaries. With this and other efforts, we will improve productivity throughout the countries and regions in which we operate.

(Related materiality areas)

  • Industry development & innovation
  • Sound economic growth

 

Gross Profits ROE

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Sustainability initiatives

In fiscal 2021, we greatly increased the volume of sustainable finance we arranged, reaching an amount 8.1 times higher than that of fiscal 2018. In the US and European capital markets, we also served as the structuring agent on a number of deals. These results came about from our development of a global information network centered on “ESG champions” appointed to advance ESG initiatives in each region and our improved ability to make proposals thanks to the hiring of ESG experts.

We will continue to not only provide funding but also implement engagement (dialogue) utilizing our industry insights, one of the Mizuho group’s strengths. In this way, we will address the business challenges of our clients and provide them with optimal solutions.

Amount of arranged sustainable finance

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Highlights

Initiatives for further growth of the US capital markets business

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In January 2022, we announced our acquisition of Capstone Partners. The acquisition will enable us to further leverage our strengths in industry insights and corporate bonds and expand our clients from mainly investment-grade companies to non-investment grade companies and sponsors in the North American capital markets, the largest financial markets in the world. With Capstone Partners’ investor base and the insight of their placement agents, we will provide strategic solutions with high added value and bring our US capital markets business to an even more advanced stage.

 
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