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Corporate & Institutional Company

Head of Corporate & Institutional Company Kosuke Nakamura

As its customers' "Trusted Global Partner," Mizuho offers a full lineup of financial solutions

The Corporate & Institutional Company is in charge of providing services to large corporations, financial institutions and public–sector entities in Japan.

In the large corporate customer market, based on its strong and long–standing relationships with large corporate customers in Japan, the Company offers a full lineup of financial solutions that combine its specialized functions in banking, trust banking and securities to meet customer needs for fund–raising and fund–management as well as for formulation of corporate management and financial strategies.

In the financial institutions market, requirements of customers for formulation of capital policies and the sophistication of asset management are rising, and it offers optimal solutions to meet their needs based on collaboration among group companies.

For public–sector entities, the Company provides comprehensive financial services including support for fund–raising through underwriting public bonds and performing services as a designated financial institution.

Also, as one of the important issues in the Japanese economy is revitalizing regional economies, it is working to transform agriculture, forestry and fisheries industries into growth sectors and is actively introducing PPP and PFI arrangements* to facilitate financing of airport and public facilities projects.

  • *PPP, or Public Private Partnership, is a scheme that enables collaboration between the public and private sectors in projects that offer public services. PFI, or Private Finance Initiative, is a typical form of PPP under which private–sector funds and know–how are used in the maintenance and operation of public facilities and the private–sector participants in PFI projects take the initiative in supplying public services.
Structure of Net Business Profits in the Interim Period of Fiscal 2016
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  • *Rounded figures, managerial accounting
Proportion of Non–interest Income for Interim Period of Fiscal 2016
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Key Aspects of the Company

Conditions in the External Environment

  • Concerns about the slowdown in the global economy, changes in the business environment resulting from negative interest rate policy
  • Globalization of customers' business activities, and a trend toward strategic emphasis on the interests of shareholders
  • Competitors adopting similar strategies
  • More active initiatives in the public and private sectors for growth industries including agriculture and revitalization of regional economies

Issues

  • Further integration of management of banking, trust banking and securities functions
  • Restructuring of business portfolio through selection and concentration
  • Strengthening response to projects requiring a high level of expertise, including equity finance, cross–border M&A, etc.
  • Building an efficient front–office system and business processes

Strengths

  • Strong relationships with its customers and customer base in each market
  • Ahead of competitors in integrating banking, trust banking, and securities functions
  • Sophisticated risk–taking capabilities accumulated through developing new financial businesses and know–how

Interim Results for Fiscal 2016

Achievements in building a highly profitable business portfolio and initiatives that capture business opportunities emerging due to changes in the external environment

The needs of customers are becoming increasingly diverse, sophisticated and global in scope. In addition, regulations regarding the risk–weighted assets and balance sheets of financial institutions are being tightened.

Taking account of this environment, the Company has aimed to build a robust and profitable business portfolio through rebalancing its management resources, including organization, personnel and other assets, and reforming its business model.

During the interim period of fiscal 2016, the Company generated net business profit of JPY 130.0 billion, which is approximately 55% of the planned level for the fiscal year as a whole. Specifically, in addition to providing financing for major M&A deals, the Company saw progress in its initiatives to stay abreast of changes in the external environment, including negative interest rates; tighter restrictions in the insurance industry; and responding to corporate governance requirements. Moreover, in collaboration with the Global Corporate Company, it continued to take initiatives to improve the profitability of its non–yen assets.

By accelerating these strategies, the Company is working to further increase profitability and raise its presence in league tables.

Net Business Profits for Fiscal 2018 (Plan)
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  • *Before head office expense deduction
Plans for Net Interest Profit and Non–interest Income*
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  • *Rounded figures, managerial accounting
League Tables
  FY2015 (Results) 1H FY2016 (Results) FY2018 (Plan)
Domestic Straight Bonds and Municipal Bonds (Underwriting amount) No.1 No.1 No.1
Total Equity Underwriting Worldwide (Underwriting amount) No.3 No.3 No.2
M&A (Any Japanese involvement) (Number of transactions) No.1 No.1 No.1

TOPIC

Arranged Recruit Holding's Major Global Offering

Mizuho was appointed active book runner and was able to sell shares overseas, for the major global offering of Recruit Holdings, which amounted to more than JPY 200.0 billion. This offering was in response to the share disposal needs of shareholders arising due to the introduction of Japan's Corporate Governance (CG) Code. At the same time, in selling shares overseas, Mizuho captured a top–class level of demand, securing a dominant position over other securities companies.

This deal proved the strength of Mizuho's platform for selling securities to overseas institutional investors. Going forward, Mizuho will draw on this dominant marketing power and work to substantially strengthen its presence in the field of ECM (equity underwriting).

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