Mizuho Financial Group Inc (MFG) 2023 Q4 法說會逐字稿

Thank you for gathering here today. Allow me to start today's investor presentation for fiscal year 2022 following the order of the presentation materials. This includes the medium-term business plan, so I expect this presentation to last slightly longer than half an hour. First, please turn to Page 2. Shown here is today's agenda, which starts with an overview of our achievements and our remaining agendas. We have also formulated our purpose. So I would like to give you some background on this, after which I will be going over the new medium-term business plan.

感謝大家今天聚集在這裡。請允許我按照演示材料的順序開始今天的 2022 財年投資者演示。這包括中期業務計劃，因此我預計本次演示會持續半小時以上。首先，請翻到第 2 頁。這裡顯示的是今天的議程，首先是對我們取得的成就和剩餘議程的概述。我們也制定了我們的宗旨。因此，我想就此向您介紹一些背景知識，之後我將介紹新的中期業務計劃。

And lastly, the capital policy. Please turn to Page 4. As we have already announced to the fiscal year 2022 financial results, I won't be going into the details. We made the decision to realize losses on foreign bonds. Excluding these and foreign exchange effects, we succeeded in meeting consolidated net business profits annual target of JPY 860 billion. Next, Page 5 contains the earnings plan for fiscal year 2023. We have set to the consolidated net business profit target at JPY 900 billion, which incorporates a conservative foreign exchange rate of JPY 120 to the U.S. dollar.

最後，資本政策。請翻到第 4 頁。由於我們已經公佈了 2022 財年的財務業績，我將不再贅述。我們做出了實現外國債券損失的決定。排除這些因素和外匯影響，我們成功實現了 8600 億日元的合併淨營業利潤年度目標。接下來，第 5 頁包含 2023 財年的盈利計劃。我們將綜合淨營業利潤目標定為 9000 億日元，其中包含 120 日元兌 1 美元的保守匯率。

Additionally, we will maintain the momentum in the current uptrend in gross profits. On the other hand, shown on the right are expenses. I believe higher expenses to be unavoidable due to increases in expenses from inflation, compensation improvements and compliance with regulations, such as, for example, the upcoming shift to ISO and the need to enhance corporate governance in some areas. On the other hand, we intended to tightly control the bottom line to maintain an expense ratio on the lower end of the 60% to 70% range. As shown in the orange portion of the waterfall chart, we will be carrying out investment towards future growth, and this will be done while keeping an eye on the progress of gross profit in fiscal year 2023. Please turn to the next page. Shown here are our achievements as previously announced.

此外，我們將維持當前毛利上升趨勢的勢頭。另一方面，右邊顯示的是費用。我認為，由於通貨膨脹、薪酬改善和法規遵從性（例如即將向 ISO 的轉變以及某些領域需要加強公司治理）導致的費用增加，更高的費用是不可避免的。另一方面，我們打算嚴格控制底線，以將費用率維持在 60% 至 70% 範圍的低端。如瀑布圖的橙色部分所示，我們將對未來的增長進行投資，這將在關注 2023 財年毛利進展的同時進行。請翻到下一頁。這裡顯示的是我們之前宣布的成就。

I believe the quality of profit has improved considerably, and we also reached our capital ratio target level. With that being said, I believe there is still room for improvement in terms of ROE and there is a need to continue the further sale of cross-shareholdings.

我相信利潤的質量已經有了很大的改善，我們也達到了我們的資本充足率目標水平。話雖如此，我相信在淨資產收益率方面仍有改善空間，並且有必要繼續進一步出售交叉持股。

Please turn to Page 7. This section continues on the topic of achievements, namely business structural reforms. Customer Groups' net business profit has more than doubled from fiscal year 2016 levels. I believe we saw a series of achievements, but there remain a number of agendas that need to be tackled. Today, I will be focusing mainly on these remaining agendas. The first item for which is strengthening comprehensive asset management consulting function. We have been executing and advancing a global equity strategy, but one of the consequences of our having focused so intently on this strategy is that we lost flexibility in terms of proposals offered. There is a need for us to be able to devise and offer solutions specifically tailored to our clients' asset portfolio.

請翻到第 7 頁。本節繼續討論成就主題，即業務結構改革。 Customer Groups 的淨業務利潤比 2016 財年增長了一倍多。我相信我們取得了一系列成就，但仍有許多議程需要解決。今天，我將主要關注這些剩餘的議程。一是強化綜合資產管理諮詢功能。我們一直在執行和推進全球股權戰略，但我們如此專注於這一戰略的後果之一是我們在所提供的建議方面失去了靈活性。我們需要能夠設計和提供專門針對客戶資產組合量身定制的解決方案。

So I believe there is a need to carry further changes to our sales style. Another agenda is that of digitalization. I believe other Japanese mega banks and online banks have the upper hand when it comes to digitalization. So we believe there is a need to thoroughly enhance client convenience through the use of digitalization. Additionally, I believe the operating keyword going forward will be co-creation. No single individual can solve the challenges that will be emerging in the future on their own. It is therefore vital to bring our clients together. And in that sense, it will also be vital to improve the expert knowledge across our in-house companies and increased cooperation and co-creation amongst them.

所以我認為有必要對我們的銷售風格進行進一步的改變。另一個議程是數字化。我相信在數字化方面，其他日本大型銀行和在線銀行具有優勢。因此，我們認為有必要通過使用數字化來徹底提高客戶的便利性。此外，我相信未來的運營關鍵詞將是共同創造。沒有一個人可以獨自解決未來出現的挑戰。因此，將我們的客戶聚集在一起至關重要。從這個意義上講，提高我們內部公司的專業知識以及加強它們之間的合作和共同創造也至關重要。

Lastly, we will continue even further our efforts to identify and review low profitability businesses. Please turn to Page 8, pertaining to our corporate foundations. As shown on the left, we count a number of achievements here, such as the integration of offices and functions and to the promotion of diverse work styles. With that being said, several agendas remain to be addressed. I believe we still have a long way to go in our efforts to transform corporate culture, and there is still a lot of work to be done in terms of digital transformation. Additionally, as I will be touching upon later on in this presentation, another important item is the streamlining of IT system structures. Other agendas, as shown in the right-hand corner are cybersecurity and global governance and there is a need to thoroughly strengthen these as a G-SIB. Please turn to the next page.

最後，我們將繼續努力識別和審查低盈利業務。請翻到第 8 頁，關於我們的公司基礎。如左圖，我們在這裡列舉了一些成果，比如辦公室和職能的整合，以及工作方式的多樣化。話雖如此，仍有幾個議程有待解決。我相信我們在企業文化轉型方面還有很長的路要走，在數字化轉型方面還有很多工作要做。此外，正如我稍後將在本次演講中提到的，另一個重要項目是簡化 IT 系統結構。其他議程，如右上角所示，是網絡安全和全球治理，需要作為 G-SIB 徹底加強這些。請翻到下一頁。

Next, our fundamental structural reforms. Progress has mostly followed our initial estimates and is moving according to plan. However, as I mentioned earlier, we expect inflationary pressures to continue going forward, and there are also other factors like compensation improvement, et cetera. In light of this, a strategy of simply reducing volume isn't very practical, so we will be putting thorough emphasis on the expense ratio in cost control, and we will seek to enhance quality.

接下來是我們的根本性結構改革。進展主要遵循我們的初步估計，並且正在按計劃進行。然而，正如我之前提到的，我們預計通脹壓力將繼續存在，而且還有其他因素，如薪酬改善等。鑑於此，單純的減量策略不太現實，因此我們將在成本控制上更加註重費用率，並尋求提高質量。

Please turn to Pages 11 and 12. Mizuho's purpose is to proactively innovate together with our clients for a prosperous and sustainable future. Please go back to Page 11. As we wrote here, we are seeing a shift in global trend, a large paradigm shift. This paradigm shift is synonymous with considerable uncertainty, but conversely, we also believe it to be an important opportunity. In particular, from Japan's vantage point, I believe this to be an important opportunity to restore and improve Japan's presence and position on the international stage. Against the backdrop of this paradigm shift, over the past year, we discussed amongst ourselves at Mizuho with input from both employees and executives, the kind of things we want to be doing 10 years, 30 years from now and how Mizuho wants to be.

請翻到第 11 頁和第 12 頁。瑞穗的宗旨是與我們的客戶一起積極創新，共創繁榮和可持續發展的未來。請返回第 11 頁。正如我們在此處所寫，我們正在看到全球趨勢的轉變，一種巨大的範式轉變。這種範式轉變是相當大的不確定性的代名詞，但反過來，我們也認為這是一個重要的機會。特別是從日本的角度來看，我認為這是恢復和提高日本在國際舞台上的存在感和地位的重要契機。在這種範式轉變的背景下，在過去的一年裡，我們在瑞穗內部討論了員工和高管的意見，我們希望在 10 年、30 年後做什麼樣的事情，以及瑞穗希望成為什麼樣的人。

The corporate purpose that emerged from this grassroots movement by employees and through collaboration between executives and employees is one to proactively innovate together with our clients for a prosperous and sustainable future. I believe these coming times will bring many initiatives to solve a variety of challenges and Mizuho wants to work alongside our clients in carrying out these initiatives.

通過員工的這一草根運動以及高管與員工之間的合作，公司的目標是與我們的客戶一起積極創新，以實現繁榮和可持續的未來。我相信這些即將到來的時代將帶來許多解決各種挑戰的舉措，瑞穗希望與我們的客戶一起實施這些舉措。

Additionally, we want to link up these initiatives to create a platform, such as the kind of company we want to become. Against this backdrop, we ourselves will break the mold of what is considered the norm in a variety of areas and to challenge ourselves. This spirit is reflected in our purpose to proactively innovate together with our clients for a prosperous and sustainable future. Let us now move on to Pages 14 and 15. We formulated a new medium-term business plan. Over the past year, employees and executives discussed the correct path for Mizuho to follow and redefined our corporate identity. As you can see in this diagram, based on our redefined corporate identity, we took the future as the starting point to backcast the right course of action in the present.

此外，我們希望將這些舉措聯繫起來，創建一個平台，比如我們想成為什麼樣的公司。在此背景下，我們自己將在各個領域打破常規，挑戰自我。這種精神體現在我們的目標中，即與我們的客戶一起積極創新，共創繁榮和可持續發展的未來。現在讓我們轉到第 14 頁和第 15 頁。我們制定了新的中期業務計劃。在過去的一年裡，員工和高管們討論了瑞穗的正確道路，重新定義了我們的企業形象。正如您在此圖中看到的，基於我們重新定義的企業形象，我們以未來為起點，回溯當前的正確行動方案。

The box on the right shows Mizuho's vision for the world in 2030 or 2040, and we use this as a starting point to identify the kind of world Mizuho should work to make a reality 10 years from now. We have synthesized this world we aim for into 4 points. First is development towards an inclusive society, providing many people with an opportunity to participate and lead fulfilling lives. Second, we expect the widespread adoption of a variety of technologies, leading to an increase in convenience. Third, Japan faces adversity in terms of its international competitiveness, but the goal is to overcome these difficulties and prosper. Last, we will see the real-world adoption of a variety of new technologies contributing to global sustainability such as the world we at Mizuho would like to help build.

右邊的方框顯示了瑞穗對 2030 年或 2040 年世界的願景，我們以此為起點，確定瑞穗應該努力在 10 年後實現什麼樣的世界。我們將這個以我們為目標的世界合成為 4 個點。首先是朝著包容性社會發展，為許多人提供參與和過上充實生活的機會。其次，我們期望廣泛採用各種技術，從而增加便利性。第三，日本在國際競爭力方面面臨逆境，但目標是克服這些困難實現繁榮。最後，我們將看到在現實世界中採用各種有助於全球可持續發展的新技術，例如我們瑞穗希望幫助建設的世界。

Page 15 discusses the themes we should approach in the present toward achieving these goals. We have listed here 5 broad themes within business. The first is support for the doubling asset-based income plan. Second is enhancing customer touch points. Third is enhancing the competitiveness of Japanese companies. Fourth is the pursuit of a Global CIB business model. Lastly, we believe things like improvement in the competitiveness of Japanese companies and to the pursuit of a Global CIB business model will translate into sustainability and innovation. However, achieving these goals requires robust corporate foundations. To this end, we will be carrying out corporate culture transformation, digital transformation, human capital enhancement, IT reforms and the maintenance of stable business operations.

第 15 頁討論了我們目前為實現這些目標應該採取的主題。我們在這裡列出了商業中的 5 個廣泛主題。一是支持資產收益翻倍計劃。二是加強客戶接觸點。三是提升日本企業競爭力。四是追求全球CIB商業模式。最後，我們相信日本公司競爭力的提高和對全球 CIB 商業模式的追求將轉化為可持續性和創新。然而，實現這些目標需要強大的企業基礎。為此，我們將進行企業文化轉型、數字化轉型、人力資本提升、IT改革和維持穩定的業務運營。

I believe these to be big foundations. There is a need to make progress in the promotion of these 5 focus themes. But given the finite nature of management resources, it is paramount that this should be done with a sense of balance.

我相信這些是重要的基礎。這5個重點主題的推進需要取得進展。但鑑於管理資源的有限性，最重要的是要保持平衡。

Please turn to Page 16. Shown here is what I believe will become Mizuho's value creation process. Shown on the left is our management capital, which we will leverage in the execution of the management strategy we formulated through a backcast from our desired future. Through this management strategy, we will be enhancing Mizuho's corporate value. We have included here 4 targets from the medium-term business plan, the first 2 being consolidated ROE of over 8% and consolidated net business profits between JPY 1 trillion and JPY 1.1 trillion. Over the past year, we received feedback that it would be beneficial to have a way to gauge corporate culture transformation quantitatively.

請翻到第16頁。這裡展示的是我認為將成為瑞穗的價值創造過程。左側顯示的是我們的經營資本，我們將利用這些資本來執行我們通過對未來期望的回溯制定的經營戰略。通過這一經營戰略，我們將提升瑞穗的企業價值。我們在此列出了中期業務計劃中的 4 個目標，前 2 個是綜合 ROE 超過 8% 和綜合淨業務利潤在 1 萬億日元至 1.1 萬億日元之間。在過去的一年裡，我們收到的反饋表明，如果有一種方法可以量化地衡量企業文化轉型，將會大有裨益。

We have, therefore, set engagement and inclusion scores as quantitative targets, and we aim to raise these scores to 65%. We will be upholding these targets while enhancing our corporate value, ultimately creating social value. By pursuing social impact, we will seek to realize Mizuho's vision for the future. This, in turn, flows back into our management capital and by repeating this cycle, we seek to realize Mizuho's vision for the future and create social value.

因此，我們將參與度和包容度分數設置為量化目標，我們的目標是將這些分數提高到 65%。我們將堅持這些目標，同時提升我們的企業價值，最終創造社會價值。通過追求社會影響力，我們將努力實現瑞穗的未來願景。這反過來又回流到我們的經營資本中，通過重複這個循環，我們力求實現瑞穗的未來願景並創造社會價值。

Please turn to Page 17. We discussed internally whether we would set to the duration of the new medium-term business plan to 3 or 5 years. Given the difficulty in predicting future global trends, we ultimately decided on 3 years. The main scenario for this period is for an economic downturn in Europe and the United States. In light of high interest rate levels and no end in sight to inflationary pressures. On the other hand, a bounce in inbound tourism to Japan could mean economic strength for the country. One thing we must bear in mind is the fact that over the past year, the U.S. Federal Reserve has rapidly raised interest rates from 0% to 5%.

請翻到第17頁。我們在內部討論了是否將新中期經營計劃的期限定為3年或5年。鑑於預測未來全球趨勢的難度，我們最終決定 3 年。這一時期的主要情景是歐洲和美國的經濟衰退。鑑於高利率水平和通脹壓力看不到盡頭。另一方面，日本入境旅遊的反彈可能意味著該國的經濟實力。我們必須記住的一件事是，在過去的一年裡，美聯儲迅速將利率從 0% 提高到 5%。

Looking back at history, interest rate hikes on the part of the Federal Reserve usually portends economic hardship. Silicon Valley Bank collapsed and was followed by a number of regional banks. Hopefully, there won't be any further bank failures, but this might not necessarily be the case. There is still a risk of targeted attacks and there is risk of contagion to institutions other than regional banks. There is a chance these fears could come to pass.

回顧歷史，美聯儲加息通常預示著經濟困難。矽谷銀行倒閉，緊隨其後的是多家地區性銀行。希望不會再有任何銀行倒閉，但情況可能不一定如此。仍然存在針對性攻擊的風險，並存在蔓延到區域性銀行以外機構的風險。這些恐懼有可能成為現實。

As such, I believe the banking industry will operate with considerable caution over at least the next year. Against this backdrop, we will strive for balance allocating sufficient resources to our strengths and shoring up our defenses. Please turn to Page 18. As shown here, our most recent consolidated ROE is around 6%. Going forward, we will thoroughly pursue capital efficiency and prioritize the allocation of corporate resources to focus areas.

因此，我相信銀行業至少在明年將謹慎行事。在此背景下，我們將努力平衡分配足夠的資源來發揮我們的優勢和加強我們的防禦。請翻到第 18 頁。如此處所示，我們最近的綜合淨資產收益率約為 6%。今後，我們將徹底追求資本效率，將企業資源優先分配給重點領域。

Through this, we seek to achieve an ROE of over 8% by the final year of the medium-term business plan. Additionally, following this, we intend to increase efficiency and productivity, allowing us to reach a PBR above a multiple of 1. Please turn to Page 19. I believe the formula on the top left-hand corner is bound to elicit opinions from stakeholders. Regardless, we intended to steadily increase ROE, allowing us to improve PBR. We will work to improve asset profitability, control the expense ratio and generate expectations for growth. Allow me to direct your attention to the denominator, which is the cost of capital minus the expected rate of growth. Our cost of capital is being slightly discounted, and there are factors particular to Mizuho behind this as well as factors particular to the overall market. In terms of factors, particular to Mizuho, we have the volatility and stability of profits and in terms of the overall market, we have low levels of growth in Japan's economy.

由此，我們力求在中期經營計劃的最後一年實現 8% 以上的 ROE。此外，在此之後，我們打算提高效率和生產力，使我們的 PBR 達到 1 的倍數以上。請翻到第 19 頁。我相信左上角的公式一定會徵求利益相關者的意見。無論如何，我們打算穩步提高 ROE，從而改善 PBR。著力提升資產盈利能力，控制費用率，增強增長預期。請允許我將您的注意力引向分母，即資本成本減去預期增長率。我們的資金成本正在小幅貼現，這背後有瑞穗特有的因素，也有整個市場特有的因素。從因素來看，特別是瑞穗，我們有利潤的波動和穩定性，從整體市場來看，我們日本經濟的增長水平很低。

Regarding Mizuho's particulars in terms of the stability of profits, as I believe was the case with this fiscal year's financial results, there is some variance depending on the business line, but I believe we have been able to put in place a structure where these business lines complement one another. Looking at overseas markets in the past 2 or 3 years, I believe that secondary markets tend to make up for the weakness in primary capital markets and vice versa. I believe we have achieved greater profit stability to some extent, but we would like to increase this even further going forward. Additionally, as it pertains to Japan, I believe it is also important for us to contribute to and incentivize the further development of the country's economy.

關於瑞穗的利潤穩定性方面的細節，我認為本財年的財務結果也是如此，根據業務線的不同會有一些差異，但我相信我們已經能夠建立一個結構，讓這些業務線條相得益彰。縱觀過去兩三年的海外市場，我認為二級市場往往會彌補一級資本市場的弱點，反之亦然。我相信我們在某種程度上已經實現了更大的利潤穩定性，但我們希望進一步提高這一點。此外，由於它與日本有關，我認為我們為該國經濟的進一步發展做出貢獻和激勵也很重要。

This is why we included the topic of the competitiveness of Japanese companies in our 5 themes. As I will be discussing later on in this presentation, over the past 2 years, we have concentrated sales targeting mid-caps. As a result of this, I believe we have been able to make business contributing to our clients' growth. Please turn to Page 20. As you may remember, we used this slide in the results presentation for the second quarter. It shows our plans to rebalance our business portfolio. I will be going over the details on Page 22. But in summary, we seek to rebalance JPY 6 trillion to JPY 7 trillion in risk assets. Following this and depending on business confidence, we would like to additionally allocate around JPY 6 trillion to areas with high levels of profitability.

這就是為什麼我們將日本企業的競爭力納入我們的 5 個主題。正如我稍後將在本次演講中討論的那樣，在過去的 2 年中，我們將銷售集中在中型股上。因此，我相信我們已經能夠讓業務為我們客戶的增長做出貢獻。請翻到第 20 頁。您可能還記得，我們在第二季度的結果演示中使用了這張幻燈片。它顯示了我們重新平衡業務組合的計劃。我將在第 22 頁詳細介紹。但總而言之，我們尋求重新平衡 6 萬億日元至 7 萬億日元的風險資產。在此之後，根據商業信心，我們想額外分配約 6 萬億日元到盈利水平高的領域。

Should we be able to do this, I believe we will see a contribution to net business profits in the customer groups of approximately JPY 170 billion. Whether we will be allocating these extra JPY 6 trillion or not, it depends on the state of the economy as we will be taking a particularly cautious approach this year.

如果我們能夠做到這一點，我相信我們將在大約 1700 億日元的客戶群中看到對淨業務利潤的貢獻。我們是否會分配這些額外的 6 萬億日元，這取決於經濟狀況，因為我們今年將採取特別謹慎的態度。

Please turn to Page 21. The waterfall chart illustrates our planned path to achieve net consolidated business profits between JPY 1 trillion and JPY 1.1 trillion by the final year of the medium-term business plan. In terms of net income attributable to the financial group, we are aiming for the midrange of JPY 700 billion. Net consolidated business profits stood at JPY 807.1 billion for fiscal year 2022. And we expect each of the businesses shown here to make a profit contribution towards the target of between JPY 1 trillion and JPY 1.1 trillion. As such, we expect an increased contribution of JPY 50 billion from asset formation and asset management, JPY 70 billion from the domestic corporate business and JPY 60 billion from the Global CIB business.

請翻到第 21 頁。瀑布圖說明了我們計劃在中期業務計劃的最後一年實現 1 萬億日元至 1.1 萬億日元的綜合業務淨利潤的計劃路徑。就歸屬於金融集團的淨利潤而言，我們的目標是 7000 億日元的中間值。 2022 財年的綜合業務淨利潤為 8071 億日元。我們預計此處顯示的每項業務都將為實現 1 萬億至 1.1 萬億日元的目標做出利潤貢獻。因此，我們預計資產形成和資產管理將增加 500 億日元的貢獻，國內公司業務將增加 700 億日元，全球 CIB 業務將增加 600 億日元。

Regarding the Global CIB business, I will be giving a brief explanation later on in this presentation, for example, outlining how we will be changing course from low profitability areas to high profitability areas. Additionally, we expect investment related to sustainability to increase in the domestic corporate business.

關於全球CIB業務，我將在本次演講的後面進行簡要說明，例如概述我們將如何從低盈利領域轉向高盈利領域。此外，我們預計與可持續發展相關的投資將增加國內企業業務。

Our target in terms of sustainability finance was originally JPY 25 trillion, but we have since revised this number to JPY 100 trillion and currently execute approximately JPY 7 trillion each year. Since the target is JPY 100 trillion, that will be a pace of JPY 10 trillion per year. This increase of JPY 3 trillion translates into an increase in finance arrangement revenue of around between JPY 10 billion and JPY 15 billion, although this is a rough estimate. Naturally, we will also be taking in assets. So assuming we take in JPY 2 trillion to JPY 3 trillion, I believe JPY 70 billion of net business profit in domestic corporate business to be rather achievable. We have previously stated that our real estate loan portfolio was very strong. However, unfortunately, last year, we fared worse than Mitsubishi.

我們在可持續金融方面的目標最初是 25 萬億日元，但後來我們將該數字修改為 100 萬億日元，目前每年執行約 7 萬億日元。由於目標是 100 萬億日元，這將是每年 10 萬億日元的速度。這 3 萬億日元的增長轉化為約 100 億至 150 億日元的融資安排收入增長，儘管這是一個粗略的估計。當然，我們也會吸收資產。因此，假設我們將 2 萬億至 3 萬億日元納入其中，我相信國內公司業務的淨營業利潤達到 700 億日元是可以實現的。我們之前曾表示，我們的房地產貸款組合非常強大。然而，不幸的是，去年我們的表現不如三菱。

We will be digging deep into this issue as we believe this to be an area we suffered a significant defeat in. However, we intended to stage a recovery here. So we view the target of JPY 70 billion as feasible. Next is asset formation and asset management, where we view the new NISA as a chance to strengthen our presence. With that being said, there is a need to drastically revamp the style of the business of asset management at our Mizuho Securities. As such, though we view these as slightly challenging figures, we see them as feasible. So we would like to achieve this number by training our personnel and changing our sales style over the next 3 years. Additionally, naturally, we will see an increase here in equity method income. So while these are some challenging figures, they are still achievable.

我們將深入研究這個問題，因為我們認為這是我們遭受重大失敗的領域。但是，我們打算在這裡進行恢復。因此，我們認為 700 億日元的目標是可行的。接下來是資產形成和資產管理，我們將新的 NISA 視為加強我們存在的機會。話雖如此，瑞穗證券需要徹底改變資產管理業務的風格。因此，儘管我們認為這些數字略有挑戰性，但我們認為它們是可行的。因此，我們希望在未來 3 年內通過培訓我們的人員和改變我們的銷售方式來實現這一數字。此外，我們自然會看到權益法收入增加。因此，儘管這些是一些具有挑戰性的數字，但它們仍然是可以實現的。

Please turn to Page 22. Next is a detailed view of the asset reallocation strategy I showed earlier. Allow me to start with residential mortgages, which is an area of particular interest for stakeholders. We will shift our focus away from these as we will no longer engage in blind interest rate competition. With that being said, there are cases presenting added value for us as looking at the data has revealed that borrowers at a certain income level have a high probability of becoming core clients. Additionally, there is also the advantage of borrowers of residential loans opening an account with us to which they have their salary deposited.

請翻到第 22 頁。接下來是我之前展示的資產重新分配策略的詳細視圖。請允許我從住宅抵押貸款開始，這是利益相關者特別感興趣的領域。我們將把注意力從這些轉移開，因為我們將不再進行盲目的利率競爭。話雖如此，有些案例為我們提供了附加值，因為查看數據表明，處於一定收入水平的借款人很有可能成為核心客戶。此外，住宅貸款的借款人在我們這裡開立賬戶並存入他們的工資也有好處。

As such, we will continue to carry out mortgages in cases like these in a limited manner. Regarding our cross-shareholdings, we announced the sale of JPY 150 billion in fiscal year 2022 and 2023. We now intend to sell more, raising this amount to JPY 300 billion over 3 years. Additionally, we have plans to drop underperforming assets, both in Japan and globally and to take on strong performers. Overseas, we will be reducing underperforming assets, primarily in Europe, but also Asia and to direct these funds to well-performing assets in Americas and APAC.

因此，對於此類情況，我們將繼續有限度地開展抵押貸款業務。關於我們的交叉持股，我們宣佈在 2022 和 2023 財年出售 1500 億日元。我們現在打算出售更多，在 3 年內將這一數額提高到 3000 億日元。此外，我們計劃放棄日本和全球表現不佳的資產，並收購表現出色的資產。在海外，我們將減少表現不佳的資產，主要是在歐洲，但也包括亞洲，並將這些資金引導至美洲和亞太地區表現良好的資產。

Please turn to Page 23. As I mentioned just now, we will once again be accelerating the sale of cross-shareholdings as we have made the decision and committed to selling JPY 300 billion. This is partially dependent on the stock price, but we expect to be market value balance to drop below 20% of net assets. In terms of the ratio of acquisition cost to net assets, we expect this percentage to drop below 10%. Additionally, we do not intend to stop at JPY 300 billion, so we will continue to review whether to hold these assets and continue to sell shareholdings with a suboptimal risk return profile. Furthermore, we will also be reducing stock from the Employee Retirement Benefit Trust Fund, aiming for a total reduction of JPY 200 billion. Please turn to Page 24. Here is the assumed scenario for target achievement as it pertains to corporate resources.

請翻到第23頁。正如我剛才提到的，我們將再次加速交叉持股的出售，因為我們已經做出決定並承諾出售3000億日元。這部分取決於股價，但我們預計市值餘額將降至淨資產的 20% 以下。從收購成本占淨資產的比例來看，我們預計這一比例將降至 10%以下。此外，我們不打算止步於 3000 億日元，因此我們將繼續審查是否持有這些資產，並繼續以次優風險回報狀況出售股權。此外，我們還將減少員工退休福利信託基金的存量，目標是總計減少 2000 億日元。請翻到第 24 頁。這裡是實現目標的假設場景，因為它與公司資源有關。

An increase in expenses is inevitable, but we will work to thoroughly reduce costs wherever possible and control the expense ratio. Regarding personnel, looking at the data reveals the fact that our headcount has decreased, though digitalization is still in its early stages. As such, we will continue advancing digital transformation efforts while allocating personnel to key domains. But ultimately, I believe we will see a slight decrease in personnel. This is still under deliberation, but we are considering a reduction of around 4,000, allocating 3,000 to focus areas.

費用增加是不可避免的，但我們會盡可能徹底地降低成本，控制費用率。在人員方面，從數據上看，我們的人數已經減少了，儘管數字化還處於早期階段。因此，我們將繼續推進數字化轉型工作，同時將人員分配到重點領域。但最終，我相信我們會看到人員略有減少。這仍在考慮中，但我們正在考慮減少約 4,000 個，將 3,000 個分配給重點領域。

Regarding IT investment, the key theme here is stabilizing business operations, so we believe it's paramount to carry out investment here. With that being said, there is a need to thoroughly review existing areas and its products and services to see if there is anything [superfluous]. Through these efforts, we seek to optimize the maintenance costs for running the bank. On the other hand, we will be covering costs related to investment toward future growth. We divide our IT cost category into running the bank and changing the bank, the latter of which currently accounts for 15% to 20% of IT-related investments and which we would like to increase to approximately 30%. Please turn to Page 25. Allow me to skip this page, which gives an idea of the number of expert personnel we seek to reskill and upskill to our workforce.

在IT投資方面，這裡的主題是穩定業務運營，所以我們認為在這裡進行投資是重中之重。話雖如此，有必要徹底審查現有領域及其產品和服務，看看是否有任何[多餘]。通過這些努力，我們尋求優化銀行運營的維護成本。另一方面，我們將支付與未來增長投資相關的成本。我們將 IT 成本類別分為運營銀行和改變銀行，後者目前佔 IT 相關投資的 15% 至 20%，我們希望將其增加到約 30%。請翻到第 25 頁。請允許我跳過此頁，該頁顯示了我們尋求為我們的員工重新培訓和提高技能的專家人員的數量。

I will also be skipping Page 26, which contains a summary of the topics I have discussed thus far. I would now like to discuss strategy as it pertains to individual areas. We will be holding an IR Day event separately. So I will be leaving the details for the heads of each of our in-house companies. But allow me to go over these as well. First is RBC and the title of this slide is Support For The Doubling of Asset-Based Income. On the upper left-hand side, we have the recognition of the current situation. As a result of our -- having advanced our global equity strategy, the Equity Investment Trust balance has increased significantly. This is an undeniable fact, and I don't think we made the wrong decision in advancing this strategy.

我還將跳過第 26 頁，其中包含迄今為止我討論過的主題的摘要。我現在想討論與各個領域相關的戰略。我們將單獨舉辦 IR Day 活動。所以我將把細節留給我們每個內部公司的負責人。但請允許我也回顧一下這些。首先是加拿大皇家銀行，這張幻燈片的標題是支持資產基礎收入翻番。在左上角，我們有對當前情況的認識。由於我們 - 推進了我們的全球股票戰略，股票投資信託餘額顯著增加。這是不可否認的事實，我不認為我們在推進這一戰略方面做出了錯誤的決定。

However, it should be said that things got a bit too rigid. As such, there is a need to carry out a transformation to comprehensive asset management consulting not restricted to global equity. On the bottom left corner, you will find client segmentation outlining our strategy going forward. In particular, for clients that only need digital services, we have alliances with PayPay Securities and Rakuten Securities. So we would like to refer these clients to our alliance partners. Conversely, it goes without saying that there are also people that want both digital and consulting services. For these clients, we will be improving the ease of use of our digital platform, while at the same time, thoroughly enhancing our consulting capabilities through our contact centers in physical locations. This refers to asset building within BK.

但是，應該說事情有點太死板了。因此，需要向不局限於全球股權的綜合資產管理諮詢轉型。在左下角，您會發現客戶細分概述了我們未來的戰略。特別是，對於只需要數字服務的客戶，我們與 PayPay Securities 和 Rakuten Securities 結成聯盟。因此，我們想將這些客戶推薦給我們的聯盟夥伴。相反，不用說，也有人需要數字服務和諮詢服務。對於這些客戶，我們將提高數字平台的易用性，同時通過我們在實體地點的聯絡中心徹底增強我們的諮詢能力。這是指 BK 內部的資產建設。

Thankfully, our life plan advisers and individual RMs within BK have developed the ability to make multifaceted proposals. As such, we will be offering thorough coverage through BK for clients choosing digital as well as face-to-face services. Additionally, going forward, we will be progressing to tap into the demographic of wealthy clients. Regarding wealthy clients, BK can act as a relationship hub, but we would like to offer a variety of other services by combining SC's asset management capabilities and TB's real estate and inheritance capabilities. In doing so, of crucial importance is what we show here on the diagram on the right, namely that we review the client's asset portfolio, risk-return tolerance and to discuss the client's life plan in offering a variety of assets. As such, we would like to carry out these efforts in earnest.

值得慶幸的是，我們在 BK 的人生計劃顧問和個人 RM 已經具備提出多方面建議的能力。因此，我們將通過 BK 為選擇數字和麵對面服務的客戶提供全面覆蓋。此外，展望未來，我們將逐步開發富裕客戶群。對於富有的客戶，BK 可以充當關係樞紐，但我們希望通過結合 SC 的資產管理能力和 TB 的房地產和繼承能力來提供多種其他服務。在這樣做時，至關重要的是我們在右圖中顯示的內容，即我們審查客戶的資產組合、風險回報承受能力，並討論客戶在提供各種資產時的人生計劃。因此，我們要認真地進行這些努力。

Please turn to Page 28. This slide is titled Enhancing Customer Touch Points. In addition to thoroughly enhancing convenience for our customers, we would also like to leverage our alliances. Shown here is an example of enhancement in our in-house services, namely the investment in digital technologies on a scale of JPY 100 billion, including investments to update technology. Additionally, we will also thoroughly digitize the main services needed by corporate and retail clients. Furthermore, previously, I mentioned a joint digital marketing initiative Mizuho is carrying out together with Google, and we expect to be able to launch this service in October of this year. In terms of physical locations as well, we have plans to thoroughly digitize and streamline a variety of processes.

請翻到第 28 頁。這張幻燈片的標題是增強客戶接觸點。除了徹底提高客戶的便利性之外，我們還希望利用我們的聯盟。這裡顯示的是我們內部服務增強的一個例子，即 1000 億日元規模的數字技術投資，包括更新技術的投資。此外，我們還將徹底數字化企業和零售客戶所需的主要服務。此外，之前我提到瑞穗正在與穀歌共同開展一項聯合數字營銷計劃，我們預計能夠在今年 10 月推出這項服務。在物理位置方面，我們也計劃徹底數字化和簡化各種流程。

We will make it possible for clients to do these processes themselves in a self-service manner as we would like to move toward a model of lightweight branches combining self-service and consulting services. We have been able to secure the opening of iDeCo and NISA accounts from visitors to our bank branches as we have had success in suggesting these to clients coming to our locations for reasons other than specifically for that purpose.

我們將讓客戶能夠以自助服務的方式自行完成這些流程，因為我們希望朝著結合自助服務和諮詢服務的輕型分支機構模式發展。我們已經能夠確保訪客到我們銀行分行開設 iDeCo 和 NISA 賬戶，因為我們已經成功地向出於特定目的以外的其他原因來到我們地點的客戶推薦這些賬戶。

These lightweight locations can therefore be beneficial for us. Regarding our alliances shown on the right-hand side, we maintain an open and flexible approach. Furthermore, unfortunately, we canceled the LINE Bank and J.Score projects. What we learned from these projects is the need to thoroughly evaluate the probability of success right from the incubation stage and to monitor the project, having the determination to withdraw from the business when it appears to lack what it needs to succeed. I believe we could have made this decision sooner. Regardless, I believe trial and error to be important when trying out new things. So we will be closely managing this. Please turn to Page 29. This slide is titled Enhancing The Competitiveness of Japanese Companies.

因此，這些輕型位置對我們來說是有益的。對於右側顯示的聯盟，我們保持開放和靈活的態度。此外，不幸的是，我們取消了 LINE Bank 和 J.Score 項目。我們從這些項目中學到的是，需要從孵化階段就徹底評估成功的可能性，並監控項目，當它似乎缺乏成功所需的東西時，要有退出業務的決心。我相信我們本可以更早做出這個決定。無論如何，我相信嘗試新事物時反複試驗很重要。因此，我們將密切管理這一點。請翻到第 29 頁。這張幻燈片的標題是“增強日本公司的競爭力”。

As I mentioned earlier, a large paradigm shift is taking place. Personally, I have the impression that Japan has undergone a lost decade of [sorts]. So I believe this is the last chance for Japanese companies to stage a recovery by leveraging this paradigm shift. As such, we would like to go deeper, especially in approaching midsized companies. Against this backdrop, we would like to deploy the sector expertise we have cultivated through our relationships with large corporations and advance value co-creation amongst large corporations, innovative companies and midsized companies.

正如我之前提到的，一場巨大的範式轉變正在發生。就我個人而言，我的印像是日本經歷了[某種]失落的十年。因此，我認為這是日本企業利用這種範式轉變實現復甦的最後機會。因此，我們希望更深入，尤其是在接近中型公司方面。在此背景下，我們希望利用我們通過與大公司的關係培養的行業專業知識，促進大公司、創新公司和中型公司之間的價值共同創造。

In the bottom left corner is a graph showing our net business profits, which stood at JPY 330 billion in fiscal year 2018 and at JPY 440 billion in fiscal year 2022. While it may not reach as high as a CAGR of 8%, the plan is for a CAGR of 5% through to fiscal year 2025, for which we intended to deliver JPY 510 billion in net business profits. Allow me to direct your attention to the right upper-hand side. We concentrate in sales function of the upper middle range of midsized companies into several corporate departments in the Tokyo metropolitan area. Doing so has made it possible for the sharing of expertise and for business proposals toward growth, and this has translated into a significant increase in profit. As such, we believe there is still room for us to do more when it comes to midsized companies.

左下角的圖表顯示了我們的淨營業利潤，2018 財年為 3300 億日元，2022 財年為 4400 億日元。雖然它可能不會達到 8% 的複合年增長率，但該計劃到 2025 財年的複合年增長率為 5%，我們計劃為此實現 5100 億日元的淨業務利潤。請允許我將您的注意力引到右上角。我們將中上層中型公司的銷售職能集中到東京都市區的幾個公司部門。這樣做使得共享專業知識和業務提案成為可能以實現增長，這已轉化為利潤的顯著增加。因此，我們認為在中型公司方面我們仍有做更多事情的空間。

Lastly, regarding large corporations, we intend on further creating sustainability-driven business. Please turn to the next page. This slide is titled Sustainability And Innovation. Allow me to discuss 2 topics here. Demonstration tests for new technologies are essential in achieving sustainability transition. I furthermore believe it is important to offer support for carrying out these trials. And to this end, we have a transition investment facility. Our pipeline for this investment facility is very well established, and we have already financed 3 projects. The vertical bar graph on the right shows our sustainable finance target, which we raised from JPY 25 trillion to JPY 100 trillion.

最後，關於大型企業，我們打算進一步創建可持續發展驅動的業務。請翻到下一頁。這張幻燈片的標題是可持續性和創新。請允許我在這裡討論 2 個主題。新技術的示範測試對於實現可持續發展轉型至關重要。此外，我認為為開展這些試驗提供支持很重要。為此，我們有一個轉型投資機制。我們為這個投資設施建立的管道非常完善，我們已經資助了 3 個項目。右側的垂直條形圖顯示了我們的可持續金融目標，我們將其從 25 萬億日元提高到 100 萬億日元。

Recently, we have been able to arrange approximately JPY 7.5 trillion in financing every year. So we are confident we will be able to achieve JPY 10 trillion annually. Page 31 contains recent examples of sustainability initiatives. We invite you to peruse these contents at your convenience later on. Page 32 details public-private collaborations. We invite you to review this information, too. Next is the Global CIB business on Page 33. Net business profits more than doubled between fiscal years 2018 and 2022. This performance isn't easy to replicate. But going forward, while we expect a slight increase in expenses, we will work to grow gross margin and achieve JPY 480 billion in net business profits.

最近，我們每年能夠安排約 7.5 萬億日元的融資。因此，我們有信心每年能夠達到 10 萬億日元。第 31 頁包含最近的可持續性舉措示例。我們邀請您稍後在方便時仔細閱讀這些內容。第 32 頁詳細介紹了公私合作。我們也邀請您查看此信息。接下來是第 33 頁上的全球 CIB 業務。在 2018 財年和 2022 財年之間，淨業務利潤增長了一倍多。這種業績不容易複製。但展望未來，雖然我們預計費用會略有增加，但我們將努力提高毛利率並實現 4800 億日元的淨營業利潤。

A large driver here is the reduction of underperforming assets to be allocated to focus areas as illustrated in the graph on the bottom left corner. We still have underperforming assets with a RORA of less than 1.5%, which we will be reducing by JPY 4 trillion and allocating JPY 4 trillion to areas with high profitability. Additionally, we are planning to further allocate approximately JPY 4 trillion newly to areas with high profitability.

如左下角的圖表所示，這裡的一個重要驅動因素是減少分配給重點領域的表現不佳的資產。我們仍然有 RORA 低於 1.5% 的表現不佳的資產，我們將減少 4 萬億日元，並將 4 萬億日元分配給盈利能力強的領域。此外，我們計劃向盈利能力強的領域進一步新分配約 4 萬億日元。

By reallocating JPY 4 trillion, we believe this will have a positive effect of approximately JPY 40 billion to JPY 50 billion. On a per region basis, we will restructure the business base in EMEA to make it more lightweight and efficient. Here, we will primarily be involved in projects from the perspective of SDGs. Please turn to Page 34, which pertains to the Americas and APAC. Our IG DCM business has been in business in the Americas for quite some time and has remained in 8th place. Additionally, our share increased in fiscal year 2022, which I think it's a great increase in capabilities. This isn't exclusive to DCM though, as we have and intended to continue to grow our capabilities in ECM and M&A.

通過重新分配 4 萬億日元，我們相信這將產生約 400 億至 500 億日元的積極影響。在每個地區的基礎上，我們將重組 EMEA 的業務基礎，使其更加輕量化和高效。在這裡，我們將主要從可持續發展目標的角度參與項目。請翻到第 34 頁，其中涉及美洲和亞太地區。我們的IG DCM業務已經在美洲開展了相當長的時間，一直保持在第8位。此外，我們的份額在 2022 財年有所增加，我認為這是能力的巨大提升。不過，這並不是 DCM 獨有的，因為我們已經並且打算繼續發展我們在 ECM 和併購方面的能力。

The bottom left-hand corner deals with sales and trading in the Americas, which saw an increase of JPY 65 billion over the last 4 years. We believe this is indicative that this has also increased in capabilities. Naturally, there is some variance, but we intended to continue expanding our business in the Americas in both primary and secondary market businesses. We are working to transfer to Asia the successes we delivered in the Americas, especially as it pertains to our derivatives platform.

左下角是美洲的銷售和貿易，在過去 4 年中增長了 650 億日元。我們認為這表明這也增加了能力。當然，存在一些差異，但我們打算繼續擴大我們在美洲的一級和二級市場業務。我們正在努力將我們在美洲取得的成功轉移到亞洲，尤其是與我們的衍生品平台有關的成功。

Page 35 deals with digital transformation. Allow me to discuss one topic here. Up until now, we have carried out incubation at Blue Lab, as was the case with projects like J-Coin. However, at some point, this incubation function appears to have been foregone. So we would like to go back to carrying out incubation at Blue Lab. Naturally, incubation is carried out together with front enterprise solutions in the process of scaling up the business. But in the case of J-Coin, this project languished without being able to scale up. This was a very unfortunate turn of events. As such, going forward, for incubation projects showing promise, we intend to apply scaling efforts through front enterprise options.

第 35 頁涉及數字化轉型。請允許我在這裡討論一個話題。到目前為止，我們在Blue Lab進行孵化，像J-Coin這樣的項目也是如此。然而，在某些時候，這種孵化功能似乎已經被放棄了。所以我們想回到 Blue Lab 進行孵化。自然，孵化是在業務做大的過程中與前端企業解決方案一起進行的。但就 J-Coin 而言，該項目因無法擴大規模而停滯不前。這是一個非常不幸的事件。因此，展望未來，對於有希望的孵化項目，我們打算通過前端企業選項來應用擴展努力。

Please turn to Page 36, dealing with human capital. We have a number of initiatives here such as corporate culture transformation, well-being and our CANADE HR initiative, promoting an organization where all employees can be themselves, leading to employee satisfaction and ease of working. As (inaudible) at the top, this translates into an increase in employee skills and allows us to carry out external hiring and develop managerial staff. This represents an improvement in human capital. Page 37 shows the trend in external hires with Mizuho executing the mid-career recruitment of 570 employees. As shown on the right-hand side, this also applies to management level personnel.

請翻到第 36 頁，處理人力資本。我們在這裡有許多舉措，例如企業文化轉型、福利和我們的 CANADE 人力資源計劃，促進所有員工都能做自己的組織，從而提高員工滿意度和工作輕鬆度。作為高層（聽不清），這轉化為員工技能的提高，使我們能夠進行外部招聘和培養管理人員。這代表著人力資本的改善。第 37 頁顯示了外部招聘的趨勢，其中 Mizuho 執行了 570 名員工的職業中期招聘。如右側所示，這也適用於管理層人員。

Page 38 deals with corporate culture transformation. As Group CEO, I am leading this group-wide transformation, carrying out initiatives like the Group CEO Live Session and townhall meetings and made rounds from Kagoshima to Nagoya for a week at the end of April, communicating with employees. I visited around 15 branch locations during this period and discussed Mizuho's corporate identity and other topics. Additionally, as I mentioned earlier, we will also be paying close attention to our engagement and inclusion scores. In terms of culture, Mizuho's CFO took a leading role in the start of a collaboration with the Tokyo University of the Arts. We will see what this union between art and finance will bring, but we would like to carry out corporate culture transformation through a variety of initiatives.

第 38 頁涉及企業文化轉型。作為集團首席執行官，我正在領導整個集團的轉型，開展集團首席執行官現場會議和市政廳會議等舉措，並在 4 月底從鹿兒島到名古屋進行為期一周的巡視，與員工進行交流。在此期間，我訪問了大約 15 個分支機構，並討論了瑞穗的企業形象和其他話題。此外，正如我之前提到的，我們還將密切關注我們的參與度和包容度分數。在文化方面，瑞穗的首席財務官在與東京藝術大學的合作中發揮了主導作用。我們將看到藝術與金融的結合會帶來什麼，但我們希望通過各種舉措來進行企業文化轉型。

Next is the capital policy on Page 40. Mizuho's basic policy remains the same. Going forward, we intend to maintain a necessary level in terms of the CET1 capital ratio in the lower end of 9% to 10%. With that being said, the recent climate has been fraught with risks. So we have the capital ratio at 9.5%, where we would like to keep it for the time being. Please turn to Page 42. As previously announced, the dividend forecast for fiscal year 2023 is JPY 95 per share. This is the final slide. I would like to encourage investment in Mizuho. Over time, we have been refining our business model, leading to quality improvements on many fronts. Additionally, we also intended to thoroughly pursue ROE improvement and balanced capital efficiency. Furthermore, we also intend to advance sustainability management in human capital management. So for this reason, I would like to request your continued support for Mizuho's corporate activities. This concludes today's presentation. I would like to thank you for your time today.

接下來是第40頁的資本政策。瑞穗的基本政策保持不變。展望未來，我們打算將 CET1 資本比率維持在 9% 至 10% 的下限水平。話雖如此，最近的氣候充滿了風險。因此，我們的資本比率為 9.5%，我們希望暫時保持這一水平。請翻到第 42 頁。如前所述，2023 財年的股息預測為每股 95 日元。這是最後一張幻燈片。我想鼓勵對瑞穗的投資。隨著時間的推移，我們一直在改進我們的商業模式，從而在許多方面實現了質量改進。此外，我們還打算徹底追求提高淨資產收益率和平衡資本效率。此外，我們還打算在人力資本管理方面推進可持續發展管理。因此，希望大家繼續支持瑞穗的企業活動。今天的演講到此結束。我要感謝你今天的時間。

[Statements in English on this transcript were spoken by an interpreter present on the live call.]

[現場通話中的口譯員用英語對這份成績單進行了陳述。]