Edgar Filing: MIZUHO FINANCIAL GROUP INC

Form 6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of May 2008.

Commission File Number 001-33098

Mizuho Financial Group, Inc.

(Translation of registrant’s name into English)

5-5, Otemachi 1-chome

Chiyoda-ku, Tokyo 100-0004

Japan

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F x Form 40-F ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ¨ No x

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):82- .

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


Date: May 1, 2008

Mizuho Financial Group, Inc.

By:		/s/ Takashi Tsukamoto
Name:		Takashi Tsukamoto
Title:		Deputy President - Executive Officer / CFO

(Mizuho Securities)

April 28, 2008

Consolidated Financial Summary

(for the year ended March 31, 2008)


Company’s name:	Mizuho Securities Co., Ltd. (“the Company”) (URL http://www.mizuho-sc.com)

Representative:	Keisuke Yokoo, President

For inquiry:	Kiyotaka Somekawa, Managing Director, Head of Risk Management and Finance Group	Phone:	(Country Code 81) 3- 5208-2030

Scheduled date of General Shareholders’ Meeting: June 25, 2008

1.	Business performance for the year ended March 31, 2008 (April 1, 2007 through March 31, 2008)


(note)	a.	All amounts have been rounded down to the nearest one million yen

	b.	The percentage in the column of operating revenues, net operating revenues, operating profit, ordinary profit and net profit indicate percentage of change compared to the same period in the previous year.

(1)	Consolidated operating results


	Operating revenues			Net operating revenues				Operating profit				Ordinary profit
	mil. yen	%		mil. yen		%		mil. yen		%		mil. yen		%
Year ended March 31, 2008	223,677	(-65.4	)	(296,567	)	( —	)	(430,293	)	( —	)	(433,672	)	( —	)
Year ended March 31, 2007	647,292	(42.4	)	165,494		(-8.3	)	45,845		(-31.8	)	46,315		(-35.4	)


	Net profit				Net profit per share		Diluted net profit per share
	mil. yen		%		yen		yen
Year ended March 31, 2008	(418,669	)	( —	)	(96,512.02	)	—	( —	)
Year ended March 31, 2007	26,951		(29.5	)	7,313.79		—	( —	)


(note)	Equity in profit of affiliated companies:	Year ended March 31, 2008:	390 mil. yen
		Year ended March 31, 2007:	113 mil. yen

(2)	Consolidated financial position


	Total assets	Net assets	Equity ratio	Net assets per share
	mil. yen	mil. yen	%	yen
As of March 31, 2008	21,122,253	331,031	1.6	49,437.93
As of March 31, 2007	21,035,385	439,257	2.1	119,199.55

(note) Net assets

As of March 31, 2008

330,492 mil. yen

As of March 31, 2007

439,250 mil. yen

2.	Dividend condition


	Dividend per share			Total Dividends (Annual)	Dividend Payout (Consolidated)	Dividend on Equity (Consolidated)
	As of Sep. 30	As of Mar. 31	Full Year	Total Dividends (Annual)	Dividend Payout (Consolidated)	Dividend on Equity (Consolidated)
	yen	yen	yen	mil. yen	%	%
Year ended March 31, 2007	— . —	3,800.00	3,800.00	14,003	52.0	3.3
Year ended March 31, 2008	— . —	— . —	0.00	—	—	—

Others

(1)	Change in number of material subsidiaries during the fiscal year: None

(2)	Change in accounting principle, procedure and presentation preparing the consolidated financial statements

(noted in “Change in the basis of consolidated financial statements”)


a. Change due to revision of accounting standards: Yes
b. Other changes: None

(Note) Refer to page 11 “Change in the basis of consolidated financial statements” for details.

(3)	Number of shares issued and outstanding (Common stock)


a. Number of shares issued and outstanding (incl. treasury stock)	As of March 31, 2008	6,685,000 shares
	As of March 31, 2007	3,685,000 shares
b. Number of treasury stock	As of March 31, 2008	- shares
	As of March 31, 2007	- shares

- 1 -

(Mizuho Securities)

(Note) Summary of nonconsolidated business performance

Business performance for the year ended March 31, 2008 (April 1, 2007 through March 31, 2008)

(1)

Nonconsolidated operating results


	Operating revenues			Net operating revenues			Operating profit				Ordinary profit
	mil. yen	%		mil. yen	%		mil. yen		%		mil. yen		%
Year ended March 31, 2008	93,916	(-30.9	)	49,716	(-56.9	)	(30,252	)	( —	)	(25,633	)	( —	)
Year ended March 31, 2007	135,932	(-2.1	)	115,300	(-9.5	)	43,529		(-29.1	)	45,267		(-27.9	)


	Net profit				Net profit per share		Diluted net profit per share
	mil. yen		%		yen		yen
Year ended March 31, 2008	(437,860	)	( —	)	(100,935.91	)	—.—
Year ended March 31, 2007	27,835		(104.5	)	7,553.61		—.—

(2)

Nonconsolidated financial position


	Total assets	Net assets	Equity ratio	Net assets per share	Capital adequacy ratio
	mil. yen	mil. yen	%	yen	%
As of March 31, 2008	12,695,032	326,151	2.6	48,788.55	266.9
As of March 31, 2007	10,536,114	403,626	3.8	109,532.18	263.1

(Note) Net Assets

As of March 31, 2008:

326,151 mil. yen

As of March 31, 2007:

403,626 mil. yen

- 2 -

(Mizuho Securities)

[Overview of group structure]

The core business areas of the Company and its group are securities and investment banking business, such as debt and equity securities, M&A, structured finance. The Company serves its customer base which includes corporate clients, financial institutions and public sector organizations, by offering high-quality, value-added financial products and services which meet wide variety of customers’ needs.

The Company has presence in major financial centers in the UK, Switzerland, the United States and Hong Kong through its subsidiaries, which enables the Company to provide globally its services and products such as equities and underwriting.

The major companies in the Company’s group are as follows:


Name of Companies	Location	Capital	Major Operations	Ownership Percentage
(Parent Companies)
Mizuho Financial Group, Inc.	Chiyoda-ku, Tokyo	mil. Yen 1,540,965	Financial holding company	—
Mizuho Corporate Bank, Ltd.	Chiyoda-ku, Tokyo	mil. Yen 1,070,965	Commercial banking	—

(Consolidated Subsidiaries)
Mizuho Securities Asia Limited	Hong Kong, People’s Republic of China	mil. HK$ 330	Securities	100.00	%
Japan Investor Relations and Investor Support, Inc.	Chiyoda-ku, Tokyo	mil. Yen 100	Consulting services and information providing services	97.00	%
The Bridgeford Group, Inc.	New York, USA	US$ 1,000,000	M&A business	100.00	%
Mizuho Bank (Switzerland) Ltd	Zurich, Switzerland	mil. SFR 53	Commercial banking and fiduciary services	100.00	%
Mizuho International plc	London, UK	mil. £ 2,314	Securities and commercial banking	100.00	%
Mizuho Securities USA Inc.	New York, USA	US$ 231,300	Securities	100.00	%
Basic Capital Management, Limited	Chiyoda-ku, Tokyo	mil. Yen 100	Financial services	100.00	%
Mizuho Investment Consulting (Shanghai) Co., Ltd.	Shanghai, People’s Republic of China	mil. CNY 10	Consulting services	100.00	%
Industrial Decisions, Inc.	Shinagawa-ku, Tokyo	mil. Yen 40	Consulting services	50.00	%
Mizuho Securities Shinko Principal Investment Co., Ltd.	Cyuo-ku, Tokyo	mil. Yen 1,000	Investment services	90.00	%

(Affiliates)
Mobile Internet Capital Inc.	Minato-ku, Tokyo	mil. Yen 100	Venture capital	30.00	%
Japan Industrial Partners Inc.	Chiyoda-ku, Tokyo	mil. Yen 100	Financial services	25.00	%
Energy & Environment Investment, Inc.	Shinagawa-ku, Tokyo	mil. Yen 100	Financial services	50.00	%

(Note)

a.	Mizuho Investment Consulting (Shanghai) Co., Ltd. was founded in April 2007 as a 100% subsidiary of the Company.

b.	Energy & Environment Investment, Inc. (formerly Japan Energy Investment, Inc.) changed its name in July 2007, and the Company’s holding increased from 35% to 50% following further investment.

c.	Industrial Decisions, Inc. is fully consolidated from December 2007 as it came within “effective control” of the Company.

d.	Mizuho Securities Shinko Principal Investment Co., Ltd. became a subsidiary of the Company with the subscription of new share issue in January 2008.

e.	Holding in Japan Industrial Partners Inc. is decreased from 33.75% to 25.00% following partial divestment in March 2008.

- 3 -

(Mizuho Securities)

Consolidated Balance Sheets

(As of March 31, 2008)


	(Unit: Millions of yen)
Descriptions	As of March 31, 2007		As of March 31, 2008		Change
Assets
Current assets	20,909,417		21,038,371		128,953
Cash and deposits	90,872		148,286		57,414
Cash segregated as deposits	18,198		16,915		(1,283	)
Securities	16,323		7,967		(8,355	)
Trading assets	6,846,573		8,531,592		1,685,019
Trading securities and others	6,631,179		7,850,567		1,219,387
Operating loan assets	8,421		40,279		31,857
Derivatives transactions	206,971		640,746		433,775
Operating investment securities	50,317		74,157		23,839
Operating loan receivables	500		2,012		1,512
Margin transaction assets	2,699		4,177		1,478
Loans secured by securities	13,721,584		11,423,819		(2,297,764	)
Payments for subscription	329		820		491
Guarantee deposits	65,823		274,601		208,777
Securities: fail to deliver	2,053		413,407		411,354
Variation margin paid	11,574		58,051		46,476
Short-term loans receivable	2,421		2,076		(345	)
Accrued income	58,262		48,807		(9,455	)
Short-term deferred tax assets	4,001		11,900		7,898
Others	17,898		19,830		1,931
Allowance for doubtful accounts	(17	)	(55	)	(37	)
Fixed assets	125,968		83,882		(42,085	)
Tangible fixed assets	11,050		14,822		3,772
Buildings	5,302		5,762		459
Furniture and fixtures	5,747		9,060		3,312
Intangible fixed assets	10,118		14,223		4,105
Goodwill	60		—		(60	)
Software	9,997		14,163		4,165
Others	60		60		0
Investments	104,799		54,836		(49,963	)
Investment securities	94,459		22,664		(71,795	)
Other equity investments	781		591		(190	)
Long-term guarantee deposits	3,795		6,441		2,645
Long-term prepaid expenses	5		1,397		1,391
Long-term deferred tax assets	4,496		20,472		15,975
Others	1,261		3,269		2,008

Total assets	21,035,385		21,122,253		86,867

- 4 -

(Mizuho Securities)



	(Unit: Millions of yen)
Descriptions	As of March 31, 2007	As of March 31, 2008		Change
Liabilities
Current liabilities	19,743,475	19,713,733		(29,742	)
Trading liabilities	5,799,324	4,845,986		(953,337	)
Trading securities and others	5,568,115	4,034,648		(1,533,466	)
Derivative transactions	231,208	811,338		580,129
Payable—unsettled trades	245,731	206,352		(39,379	)
Margin transaction liabilities	8,563	7,771		(791	)
Borrowings secured by securities	11,144,962	10,697,060		(447,902	)
Deposits received	27,416	20,525		(6,891	)
Cash collateral received from customers	76,200	202,727		126,526
Securities: fails to receive	2,518	436,170		433,652
Short-term borrowings	1,926,542	2,830,083		903,541
Commercial paper	390,200	287,900		(102,300	)
Short-term bonds and notes	24,893	104,472		79,578
Accrued expenses	65,168	46,783		(18,385	)
Income taxes payable	693	1,128		434
Reserve for bonuses	21,655	21,345		(310	)
Short-term deferred tax liabilities	24	6		(18	)
Others	9,579	5,420		(4,159	)
Fixed liabilities	850,624	1,075,460		224,836
Bonds and notes	522,005	597,701		75,695
Long-term borrowings	320,194	469,287		149,093
Deferred tax liabilities	475	641		165
Reserve for retirement benefits	7,473	7,315		(157	)
Reserve for retirement benefits for directors, operating officers and corporate auditors	451	468		16
Others	23	46		22
Statutory reserves	2,027	2,027		—
Securities transaction liability reserve	1,922	1,922		—
Futures transaction liability reserve	104	104		—

Total liabilities	20,596,128	20,791,222		195,094

Net Assets
Shareholders’ equity	392,833	360,796		(32,037	)
Common stock	195,146	395,146		200,000
Capital surplus	125,288	325,288		200,000
Retained earnings	72,399	(359,638	)	(432,037	)
Revaluation / translation difference	46,416	(30,303	)	(76,719	)
Unrealized gains (or losses) on other securities, net of taxes	29,579	1,185		(28,393	)
Foreign currency translation adjustments	16,837	(31,489	)	(48,326	)
Minority interests	7	538		531

Total net assets	439,257	331,031		(108,226	)

Total liabilities, minority interests and net assets	21,035,385	21,122,253		86,867

- 5 -

(Mizuho Securities)

Consolidated Statements of Operations

(for the year ended March 31, 2008)


	(Unit: Millions of yen)
Descriptions	Year ended March 31, 2007		Year ended March 31, 2008		Period to period comparison (%)
Operating Revenues	647,292		223,677		34.6	%
Commission	77,905		75,241		96.6	%
Trading profits (losses)	63,245		(413,259	)	—
Net gains (losses) on operating investment securities	(414	)	3,388		—
Interest and dividend income	506,555		558,306		110.2	%
Interest expense	481,798		520,244		108.0	%

Net operating revenues (losses)	165,494		(296,567	)	—

Selling, general and administrative expenses	119,649		133,725		111.8	%
Commissions and other transaction-related expenses	26,786		27,573		102.9	%
Compensation and benefits	61,103		64,798		106.0	%
Occupancy	13,298		17,781		133.7	%
Data processing and office supplies	6,673		7,877		118.0	%
Depreciation	6,301		7,671		121.7	%
Amortization of goodwill	739		52		7.1	%
Taxes and dues other than income taxes	1,619		2,094		129.4	%
Others	3,126		5,877		188.0	%

Operating profits (losses)	45,845		(430,293	)	—

Non-operating revenues	3,937		3,026		76.9	%
Equity in profit of affiliated companies	113		390		346.0	%
Others	3,824		2,635		68.9	%
Non-operating expenses	3,467		6,406		184.8	%

Ordinary profits (losses)	46,315		(433,672	)	—

Non-ordinary profits	769		19,881		—
Non-ordinary losses	831		13,160		—

Profits (losses) before income taxes and minority interests in net profits (losses)	46,253		(426,951	)	—

Income taxes—current	14,108		4,800		34.0	%

Income taxes—deferred	5,193		(13,043	)	—

Minority interests in net profits (losses)	1		(38	)	—

Net profits (losses)	26,951		(418,669	)	—

- 6 -

(Mizuho Securities)

Consolidated Statements of Changes in Net Assets

(for the year ended March 31, 2007)


	(Unit: Millions of yen)
	Shareholders’ equity
	Common stock	Capital surplus	Retained earnings		Total shareholders’ equity
Beginning balance as of March 31, 2006	195,146	125,288	52,081		372,515

Change in this period
Dividend paid	—	—	(6,633	)	(6,633	)
Net profit of this period	—	—	26,951		26,951
Net change in items other than shareholders’ equity	—	—	—		—

Total change in this period	—	—	20,318		20,318

Ending balance as of March 31, 2007	195,146	125,288	72,399		392,833


	Revaluation and translation difference				Minority Interests	Total net assets
	Net unrealized gains (or losses) on other securities, net of taxes		Translation differences	Total revaluation / translation difference	Minority Interests	Total net assets
Beginning balance as of March 31, 2006	35,471		5,677	41,148	6	413,670

Change in this period
Dividend paid	—		—	—	—	(6,633	)
Net profit of this period	—		—	—	—	26,951
Net change in items other than shareholders’ equity	(5,891	)	11,159	5,267	1	5,268

Total change in this period	(5,891	)	11,159	5,267	1	25,586

Ending balance as of March 31, 2007	29,579		16,837	46,416	7	439,257

- 7 -

(Mizuho Securities)

Consolidated Statements of Changes in Net Assets

(for the year ended March 31, 2008)


	(Unit: Millions of yen)
	Shareholders’ equity
	Common stock	Capital surplus	Retained earnings		Total shareholders’ equity
Beginning balance as of March 31, 2007	195,146	125,288	72,399		392,833

Increase due to change in accounting policies in foreign subsidiaries	—	—	634		634

Change in this period
New shares issued	200,000	200,000	—		400,000
Dividend paid	—	—	(14,003	)	(14,003	)
Net losses of the period	—	—	(418,669	)	(418,669	)
Net change in items other than shareholders’ equity	—	—	—		—

Total change in this period	200,000	200,000	(432,672	)	(32,672	)

Ending balance as of March 31, 2008	395,146	325,288	(359,638	)	360,796


	Revaluation and translation difference						Minority Interests	Total net assets
	Net unrealized gains (or losses) on other securities, net of taxes		Translation differences		Total revaluation / translation difference		Minority Interests	Total net assets
Beginning balance as of March 31, 2007	29,579		16,837		46,416		7	439,257

Increase due to change in accounting policies in foreign subsidiaries	—		—		—		—	634

Change in this period
New shares issued	—		—		—		—	400,000
Dividend paid	—		—		—		—	(14,003	)
Net losses of the period	—		—		—		—	(418,669	)
Net change in items other than shareholders’ equity	(28,393	)	(48,326	)	(76,719	)	531	(76,188	)

Total change in this period	(28,393	)	(48,326	)	(76,719	)	531	(108,861	)

Ending balance as of March 31, 2008	1,185		(31,489	)	(30,303	)	538	331,031

- 8 -

(Mizuho Securities)

Note to consolidated financial statements

The Company’s consolidated financial statements are prepared in accordance with the “Regulations of Consolidated Financial Statements” (Ministry of Finance (MoF) Ordinance No.28, 1976) (the “Regulations”), as well as with the “Cabinet Office Ordinance Concerning Financial Instruments Business “ (Cabinet Office Ordinance No.52, 2007), “Uniform Accounting Standards of Securities Companies” (approved by the board of directors of Japan Securities Dealers Association, November 14, 1974), and the “Cabinet Office Ordinance Concerning Financial Accounting and Reporting for Special Finance Company” (Prime Minister’s Office and MoF Ordinance No. 32, 1999), subject to the provisions of Article 46 and Article 68 of the Regulations.

Basis of consolidated financial statements

1.	Scope of consolidation

Consolidated subsidiaries: 22 companies

Name of major subsidiaries

Mizuho Securities Asia Limited

Japan Investor Relations and Investor Support, Inc.

The Bridgeford Group, Inc.

Mizuho Bank (Switzerland) Ltd

Mizuho International plc

Mizuho Securities USA Inc.

Basic Capital Management, Limited

Mizuho Investment Consulting (Shanghai) Co., Ltd.

Industrial Decisions, Inc.

Mizuho Securities Shinko Principal Investment Co., Ltd.


(note)		Mizuho Investment Consulting (Shanghai) Co., Ltd., Greater China Investments GP (Cayman) Ltd. and Greater China PE Fund L.P. were newly founded as subsidiaries of the Company in this period. Due to application of Practical Issue Task Force No.18, “Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial Statements” (Accounting Standards Board of Japan, May 17, 2006) and for other reasons, 6 special purpose companies owned by Mizuho International plc are treated as consolidated subsidiaries from this period. Industrial Decisions, Inc. is fully consolidated as it came under “effective control” of the Company. With Mizuho Securities Shinko Principal Investment Co., Ltd. becoming a subsidiary following the new share subscription by of the Company, an investment limited partnership of which Mizuho Securities Shinko Principal Investment Co., Ltd. is a general partner, is now also within the scope of consolidation.

2.	Application of equity method

Affiliates accounted for under equity method: 8 companies

Name of major affiliates

Mobile Internet Capital Inc.

Japan Industrial Partners Inc.

Energy & Environment Investment, Inc.


(note)	a.	Mizuho Alternative Investments, LLC and Energy & Environment First Investment Limited Partnership which were founded in this period, are accounted for under equity method.
	b.	Holdings in Polaris Principal Finance Co., Ltd. which was previously accounted for under equity method, was divested and excluded from consolidation from this period. As a result, an investment limited partnership whose general partner was Polaris Principal Finance Co., Ltd. was also excluded from consolidation from this period.
	c.	Industrial Decisions, Inc. is fully consolidated now, and is no longer accounted for under equity method.
	d.	Max Investment Advisory Co., Ltd. is liquidated and is excluded from the scope of the consolidation.

3.	Year ends of subsidiaries

Our subsidiaries have coterminous March 31 year end with the Company, except for Mizuho Investment Consulting (Shanghai) Co., Ltd. and other four subsidiaries, who have December 31 year end. Except for one company, December 31 financial statements are used for these subsidiaries with non-conterminous year end, with necessary adjustments made for the effect of significant transactions or events, if any, that occurred between the reporting date of the subsidiaries and that of the Company.

4.	Accounting policies

(1)

Valuation of trading account securities and derivatives

The Company and its subsidiaries, through its trading activities, intend to contribute to the market for their liquidity and price discovery process.

The Company holds trading positions for the purpose of : 1) responding to counterparties’ needs to invest or hedge risk, and 2) gaining profit or mitigating loss due to fluctuations of market prices and differences of prices in various markets.

Securities, derivative transactions, and assets or liabilities in trading account are recorded at fair value.

(2)

Valuation of non-trading securities

Non-trading securities are valued as follows:

Other securities with market value

Recorded at market value. Difference between the cost, using the moving average method, and market value is recorded as net unrealized gains (or losses) on other securities, net of taxes in net assets on the balance sheet.

Other securities without market value

Recorded at cost using moving average method.

Investment in Investment Associations (Treated as securities by Article 2(2) of Securities and Exchange Law) Initially recorded at cost and subsequently adjusted to reflect the Company’s share of the net profit or loss of the partnership based on the latest financial reports available.

- 9 -

(Mizuho Securities)

(3)

Depreciation method of significant assets

Tangible fixed assets

The Company and its domestic subsidiaries apply the declining-balance method except for buildings (excluding leasehold improvement) acquired after March 31, 1998, for which the straight-line method is used.

Overseas subsidiaries mainly apply the straight-line method.

Intangible fixed assets

The straight-line method is primarily applied.

The amortization period of software for internal use (5-10 years) is determined based on estimated internal useful lives.

(4)

Deferred assets

Bond issuance cost and stock issuance cost are charged to income when incurred.

(5)

Accounting policies for reserves

Allowance for doubtful accounts

The Company provides the allowance for possible losses on doubtful accounts. For performing assets, allowance is calculated based on the past loss experience. For non-performing assets, it is based on the management’s assessment of recoverability of the assets, and amount expected to be non-recoverable is provided for.

Reserve for bonuses

Reserve is provided for bonus payments to employees and corporate officers at the amount accrued at the end of the period, based on the estimated future payments and service periods.

Reserve for retirement benefits

Reserve for retirement benefits is provided for future retirement benefits to employees and corporate officers based on actuarial retirement benefits and plan assets at end of year.

Prior service cost is charged to income in the period which the cost is recognized.

Net actuarial gains or losses are recognized as income or expenses from the following fiscal year under the straight-line method over a certain term within the average remaining service period of the current employees.

Reserve for retirement benefits for directors, operating officers and corporate auditors

Reserve for retirement benefits for directors, operating officers and corporate auditors is provided for future retirement benefits for them at the amount accrued at the end of the period, based on prescribed calculation method.

(6)

Accounting for lease transactions

Financing leases other than those for which the ownership of the leased property transfers to the lessee are mainly accounted for as ordinary rental transactions.

(7)

Accounting for hedging transactions

Certain forward foreign exchange transactions are entered into to hedge currency risk of investments in overseas subsidiaries. Gains and losses from such transactions are deferred to the extent that such hedge is effective, and are shown under “Foreign currency translation adjustments” in Net assets.

Borrowings in foreign currency entered into to hedge exchange risk of foreign currency denominated operating investment securities are accounted for under fair value hedge accounting.

Interest rate swaps to hedge interest rate rise of borrowings are, when they qualify for exceptional treatment, accounted for under exceptional method as permitted under Japanese GAAP.

(8)

Other significant accounting policies

Consumption taxes

Transactions subject to consumption taxes are recorded at amounts exclusive of consumption taxes.

5.	Valuation of assets and liabilities of subsidiaries acquired

All assets and liabilities consolidated subsidiaries are valued at fair value and included in the consolidated financial statements when acquired.

- 10 -

(Mizuho Securities)

Change in the basis of consolidated financial statements

1.	Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries

The Company applied from this period “Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial Statements” (PITF No.18, Accounting Standards Board of Japan, May 17, 2006), which is applicable to the fiscal period commencing on or after April 1, 2008, but early adoption is allowed. The effect on the consolidated financial statements is immaterial.

2.	Application of new depreciation method

The company and its subsidiaries in Japan changed its depreciation method for assets acquired on or after April 1, 2007 to comply with Tax Reform Act 2007 and “The treatment of depreciation for audit purpose at the present stage” (JICPA Audit and Assurance Practice Committee Report No.81, April 25, 2007). The effect on the consolidated financial statements is immaterial.

Note to consolidated statement of change in net assets

Previous fiscal year (for the year ended March 31, 2007)

1.	Number of shares outstanding


	(unit: shares)
	As of March 31, 2006	Increase	Decrease	As of March 31, 2007
Common stock	3,685,000	—	—	3,685,000

2.	Treasury stock

The Company has no treasury stock at the end of the period.

Dividends

(1)

Dividend paid


Resolution	Type of shares	Amount of dividend	Dividend per share	Record date	Effective date
General shareholders’ meeting on June 26, 2006	Common stock	6,633 million yen	1,800 yen	March 31, 2006	June 27, 2006

(2)

Dividend to be paid in the following year


Type of shares	Amount of dividend	Resource of dividend	Dividend per share	Record date	Effective date
Common stock	14,003 million yen	Retained Earnings	3,800 yen	March 31, 2007	June 26, 2007

This fiscal year (for the year ended March 31, 2008)

1.	Number of shares outstanding


	(unit: shares)
	As of March 31, 2007	Increase	Decrease	As of March 31, 2008
Common stock	3,685,000	3,000,000	—	6,685,000

(note)

Increase in the period is to Mizuho Corporate Bank, Ltd new share issuance through a third-party allocation.

2.	Treasury stock

The Company has no treasury stock at the end of the period.

Dividends

(1)

Dividend paid


Resolution	Type of shares	Amount of dividend	Dividend per share	Record date	Effective date
General shareholders’ meeting on June 25, 2007	Common stock	14,003 million yen	3,800 yen	March 31, 2007	June 26, 2007

(2)	Dividend to be paid in the following year

There are no applicable items

- 11 -

(Mizuho Securities)

Consolidated Financial Data

(for the year ended March 31, 2008)

1.	Commission Income

(1)	Breakdown by categories


	(Unit: Millions of yen)
	Year ended March 31, 2007		Year ended March 31, 2008		Period-to-period comparison (%)
Brokerage commission	23,788		20,039		84.2	%
(Stocks)	(16,813	)	(13,326	)	(79.3	%)
(Bonds)	(6,964	)	(6,701	)	(96.2	%)
Underwriting and selling commissions	24,831		16,345		65.8	%
(Stocks)	(16,123	)	(4,790	)	(29.7	%)
(Bonds)	(8,321	)	(10,651	)	(128.0	%)
Subscription and distribution commissions	1,355		2,134		157.4	%
(Stocks)	(1	)	(855	)	(	—)
(Bonds)	(552	)	(371	)	(67.3	%)
(Investment trusts)	(382	)	(500	)	(130.8	%)
Other commissions received	27,929		36,722		131.5	%

Total	77,905		75,241		96.6	%

(2)	Breakdown by products


	(Unit: Millions of yen)
	Year ended March 31, 2007	Year ended March 31, 2008	Period-to-period comparison (%)
Stocks	33,526	19,591	58.4	%
Bonds	18,839	20,197	107.2	%
Investment trusts	3,689	4,959	134.4	%
Others	21,849	30,492	139.6	%

Total	77,905	75,241	96.6	%

2.	Trading profit / loss


	(Unit: Millions of yen)
	Year ended March 31, 2007	Year ended March 31, 2008		Period-to-period comparison (%)
Stocks	20,510	(16,077	)	—
Bonds, Foreign exchange and Others	42,734	(397,182	)	—

Total	63,245	(413,259	)	—

- 12 -

(Mizuho Securities)

(Reference Data)

Quarterly Trends in Consolidated Statements of Operations


	(Unit: Millions of yen)
Description	Three months ended Mar. 31, 2007		Three months ended Jun. 30, 2007	Three months ended Sep. 30, 2007		Three months ended Dec. 31, 2007		Three months ended Mar. 31, 2008
Operating Revenues	183,620		207,687	135,114		4,465		(123,590	)
Commissions	20,640		17,200	17,827		16,108		24,105
Trading profits (losses)	16,168		27,434	(43,427	)	(174,992	)	(222,274	)
Net gains (losses) on operating investment securities	(161	)	776	3,258		(887	)	241
Interest and dividend income	146,973		162,276	157,455		164,237		74,337
Interest Income	139,115		157,629	148,913		156,265		57,436

Net operating revenues (losses)	44,505		50,058	(13,799	)	(151,799	)	(181,026	)

Selling, general and administrative expenses	32,721		35,336	33,447		34,315		30,626
Commissions and other transaction-related expenses	7,223		7,279	8,174		4,908		7,209
Compensation and benefits	16,908		17,602	16,847		18,944		11,404
Occupancy	3,892		4,412	4,133		4,626		4,609
Data processing and office supplies	2,097		2,484	1,495		1,843		2,054
Depreciation	1,680		1,714	1,737		2,159		2,059
Amortization of goodwill	15		15	15		15		7
Taxes and dues other than income taxes	462		495	367		507		725
Others	442		1,332	676		1,311		2,557

Operating Profits (losses)	11,783		14,721	(47,246	)	(186,115	)	(211,652	)

Non-operating Revenues	1,961		825	847		625		729
Equity in profit of affiliated companies	9		28	358		185		(181	)
Others	1,951		797	488		439		910
Non-operating expenses	1,334		1,116	1,456		1,781		2,051

Ordinary Profits (losses)	12,410		14,430	(47,856	)	(187,272	)	(212,974	)

Non-ordinary profits	284		777	935		18,358		(190	)
Non-ordinary losses	368		305	5,914		771		6,169

Profits (losses) before income taxes and minority interests in net profits (losses)	12,326		14,902	(52,834	)	(169,685	)	(219,334	)

Income taxes—current	6,172		7,946	(5,864	)	1,502		1,215

Income taxes—deferred	(2,054	)	828	(13,782	)	(1,543	)	1,453

Minority interests in net profits (losses)	0		1	(0	)	3		(43	)

Net profits (losses)	8,208		6,125	(33,186	)	(169,647	)	(221,960	)

- 13 -

(Mizuho Securities)

Nonconsolidated Balance Sheets

(As of March 31, 2008)


	(Unit: Millions of yen)
Descriptions	As of March 31, 2007		As of March 31, 2008		Change
Assets
Current assets	10,278,106		12,476,240		2,198,134
Cash and deposits	38,665		39,462		796
Cash segregated as deposits	18,198		16,915		(1,283	)
Trading assets	5,671,001		7,543,860		1,872,859
Trading securities and others	5,485,135		7,002,202		1,517,066
Loan assets	8,421		40,279		31,857
Derivative transactions	177,443		501,379		323,935
Operating investment securities	40,091		33,433		(6,657	)
Operating loan receivables	500		2,012		1,512
Margin transaction assets	870		1,974		1,103
Loans secured by securities	4,422,012		4,657,424		235,412
Payments for subscription	329		820		491
Guarantee deposits	54,738		99,606		44,868
Securities: fail to deliver	991		—		(991	)
Variation margin paid	2,674		8,644		5,969
Short-term loans	—		27,915		27,915
Accrued income	19,976		22,460		2,483
Tax refundable	1,704		5,949		4,245
Short-term deferred tax assets	3,951		11,497		7,545
Others	2,405		4,267		1,861
Allowance for doubtful accounts	(5	)	(4	)	1
Fixed assets	258,008		218,791		(39,217	)
Tangible fixed assets	6,182		10,435		4,252
Buildings	2,724		2,846		122
Furniture and fixtures	3,458		7,588		4,130
Intangible fixed assets	8,314		12,370		4,055
Goodwill	60		—		(60	)
Software	8,202		12,320		4,117
Others	52		49		(2	)
Investments and other assets	243,510		195,986		(47,524	)
Investment securities	72,042		7,260		(64,782	)
Investment in affiliates	132,035		148,781		16,746
Long-term loan to affiliates	23,000		8,970		(14,030	)
Long-term guarantee deposits	3,660		6,197		2,536
Long-term prepaid expenses	5		1,397		1,391
Long-term deferred tax assets	11,544		22,018		10,473
Others	1,221		1,361		140
Allowance for doubtful accounts	—		(0	)	(0	)

Total assets	10,536,114		12,695,032		2,158,917

- 14 -

(Mizuho Securities)


	(Unit: Millions of yen)
Descriptions	As of March 31, 2007		As of March 31, 2008		Change
Liabilities
Current liabilities	9,513,310		11,561,216		2,047,905
Trading liabilities	4,328,457		4,155,816		(172,641	)
Trading securities and others	4,139,223		3,655,375		(483,848	)
Derivative transactions	189,233		500,440		311,206
Payable—unsettled trades	132,845		197,253		64,407
Margin transaction liabilities	8,716		7,771		(944	)
Borrowings secured by securities	2,834,477		4,118,380		1,283,903
Deposits received	18,689		14,974		(3,715	)
Cash collateral received from customers	9,247		34,789		25,541
Securities: fails to receive	989		6		(983	)
Short-term borrowings	1,754,276		2,658,236		903,960
Commercial paper	390,200		287,900		(102,300	)
Short-term bonds and notes	11,200		65,700		54,500
Advance receipt	765		11		(753	)
Accrued expenses	16,069		16,698		629
Reserve for bonuses	6,682		3,243		(3,438	)
Others	694		433		(261	)
Fixed liabilities	617,149		805,636		188,486
Bonds and notes	302,800		331,100		28,300
Long-term borrowings	190,560		244,878		54,318
Long-term borrowings from affiliates	116,400		222,000		105,600
Reserve for retirement benefits	6,938		7,189		251
Reserve for retirement benefits for directors, operating officers and corporate auditors	451		468		16
Statutory reserves	2,027		2,027		—
Securities transaction liability reserve	1,922		1,922		—
Futures transaction liability reserves	104		104		—

Total liabilities	10,132,488		12,368,880		2,236,391

Net assets
Shareholders’ equity	377,605		325,742		(51,863	)
Common stock	195,146		395,146		200,000
Capital surplus	125,288		325,288		200,000
Additional paid-in capital	125,288		325,288		200,000
Retained earnings	57,171		(394,692	)	(451,863	)
Legal earned reserve	870		870		—
Voluntary reserve	56,300		(395,562	)	(451,863	)
Reserve for special depreciation	12		—		(12	)
Other reserve	1,500		1,500		—
Unappropriated retained earnings	54,788		(397,062	)	(451,851	)
Revaluation/translation difference	26,020		409		(25,611	)
Net unrealized gains (or losses) on other securities, net of taxes	29,174		409		(28,765	)
Net deferred hedge losses (or gains), net of taxes	(3,154	)	—		3,154

Total net assets	403,626		326,151		(77,474	)

Total liabilities and net assets	10,536,114		12,695,032		2,158,917

- 15 -

(Mizuho Securities)

Nonconsolidated Statements of Operations

(for the year ended March 31, 2008)


	(Unit: Millions of yen)
Descriptions	Year ended March 31, 2007	Year ended March 31, 2008		Period to period comparison (%)
Operating Revenues	135,932	93,916		69.1	%
Commissions	72,221	59,813		82.8	%
Trading profits (losses)	34,967	(26,393	)	—
Net gains on operating investment securities	555	5,626		—
Interest and dividend income	28,188	54,869		194.7	%
Interest expenses	20,631	44,200		214.2	%

Net operating revenues	115,300	49,716		43.1	%

Selling, general and administrative expenses	71,771	79,968		111.4	%
Commissions and other transaction-related expenses	18,071	21,657		119.8	%
Compensation and benefits	30,298	28,013		92.5	%
Occupancy	10,634	15,122		142.2	%
Data processing and office supplies	5,239	5,405		103.2	%
Depreciation	4,047	5,486		135.5	%
Amortization of goodwill	60	60		100.0	%
Taxes and dues other than income taxes	1,587	2,012		126.8	%
Others	1,831	2,209		120.7	%

Operating profits (losses)	43,529	(30,252	)	—

Non-operating revenues	4,817	10,788		224.0	%
Non-operating expenses	3,079	6,169		200.4	%

Ordinary profits (losses)	45,267	(25,633	)	—

Non-ordinary profits	9	18,452		—
Non-ordinary losses	768	439,074		—

Profits (losses) before income taxes	44,508	(446,256	)	—

Income taxes—current	12,892	978		7.6	%

Income taxes—deferred	3,780	(9,373	)	—

Net profits (losses)	27,835	(437,860	)	—

- 16 -

(Mizuho Securities)

Nonconsolidated Statements of Changes in Net Assets

(for the year ended March 31, 2007)


	(Unit: Millions of yen)
	Shareholders’ equity
		Capital surplus		Retained earnings
					Voluntary reserve
	Common stock	Additional paid-in capital	Total capital surplus	Legal earned reserve	Reserve for special depreciation		Other reserve	Unappropriated retained earnings		Total retained earnings		Total shareholders’ equity
Beginning balance as of March 31, 2006	195,146	125,288	125,288	870	61		1,500	33,536		35,969		356,403

Change in this period
Dividend paid	—	—	—	—	—		—	(6,633	)	(6,633	)	(6,633	)
Net profit of this period	—	—	—	—	—		—	27,835		27,835		27,835
Release of reserve for special depreciation	—	—	—	—	(49	)	—	49		—		—
Net change in items other than shareholders’ equity	—	—	—	—	—		—	—		—		—

Total change in this period	—	—	—	—	(49	)	—	21,251		21,202		21,202

Ending balance as of March 31, 2007	195,146	125,288	125,288	870	12		1,500	54,788		57,171		377,605


	Revaluation / translation difference						Total net assets
	Net unrealized gains (or losses) on other securities, net of taxes		Net deferred hedge losses (or gains), net of taxes		Total revaluation / translation difference		Total net assets
Beginning balance as of March 31, 2006	35,451		—		35,451		391,854

Change in this period
Dividend paid	—		—		—		(6,633	)
Net profit of this period	—		—		—		27,835
Release of reserve for special depreciation	—		—		—		—
Net change in items other than shareholders’ equity	(6,276	)	(3,154	)	(9,430	)	(9,430	)

Total change in this period	(6,276	)	(3,154	)	(9,430	)	11,771

Ending balance as of March 31, 2007	29,174		(3,154	)	26,020		403,626

- 17 -

(Mizuho Securities)

Nonconsolidated Statements of Changes in Net Assets

(for the year ended March 31, 2008)


	(Unit: Millions of yen)
	Shareholders’ equity
		Capital surplus		Retained earnings
					Voluntary reserve
	Common stock	Additional paid-in capital	Total capital surplus	Legal earned reserve	Reserve for special depreciation		Other reserve	Unappropriated retained earnings		Total retained earnings		Total shareholders’ equity
Beginning balance as of March 31, 2007	195,146	125,288	125,288	870	12		1,500	54,788		57,171		377,605

Change in this period
New shares issued	200,000	200,000	200,000	—	—		—	—		—		400,000
Dividend paid	—	—	—	—	—		—	(14,003	)	(14,003	)	(14,003	)
Net loss of this period	—	—	—	—	—		—	(437,860	)	(437,860	)	(437,860	)
Release of reserve for special depreciation	—	—	—	—	(12	)	—	12		—		—
Net change in items other than shareholders’ equity	—	—	—	—	—		—	—		—		—

Total change in this period	200,000	200,000	200,000	—	(12	)	—	(451,851	)	(451,863	)	(51,863	)

Ending balance as of March 31, 2008	395,146	325,288	325,288	870	—		1,500	(397,062	)	(394,692	)	325,742


	Revaluation / translation difference						Total net assets
	Net unrealized gains (or losses) on other securities, net of taxes		Net deferred hedge losses (or gains), net of taxes		Total revaluation / translation difference		Total net assets
Beginning balance as of March 31, 2007	29,174		(3,154	)	26,020		403,626

Change in this period
New shares issued	—		—		—		400,000
Dividend paid	—		—		—		(14,003	)
Net loss of this period	—		—		—		(437,860	)
Release of reserve for special depreciation	—		—		—		—
Net change in items other than shareholders’ equity	(28,765	)	3,154		(25,611	)	(25,611	)

Total change in this period	(28,765	)	3,154		(25,611	)	(77,474	)

Ending balance as of March 31, 2008	409		—		409		326,151

- 18 -

(Mizuho Securities)

Notes to nonconsolidated financial statements

The Company’s financial statements are prepared in accordance with the “Regulations Concerning the Terminology, Forms and Preparation Methods of Financial Statements” (Ministry of Finance (MoF) Ordinance No.59, 1963) (the “Regulations”), as well as with the “Cabinet Office Ordinance Concerning Financial Instruments Business “ (Cabinet Office Ordinance No.52, 2007), “Uniform Accounting Standards of Securities Companies” (approved by the board of directors of Japan Securities Dealers Association, November 14, 1974), and the “Cabinet Office Ordinance Concerning Financial Accounting and Reporting for Special Finance Company” (Prime Minister’s Office and MoF Ordinance No. 32, 1999), subject to the provisions of Article 2 of the Regulations.

Basis of nonconsolidated financial statements

1.	Valuation of trading account securities and derivatives

The Company holds trading positions for the purpose of: 1) responding to counterparties’ needs to invest or hedge risk, and 2) gaining profit or mitigating loss due to fluctuations of market prices and differences of prices in various markets.

Securities, derivative transactions, and assets or liabilities in trading account are recorded at fair value.

2.	Valuation of non-trading securities

(1)

Investments in subsidiaries and affiliates are stated at cost, using the moving average method.

(2)

Other securities:

Other securities with market value

Other securities without market value

Recorded at cost using the moving average method.

Investment in Investment Associations (Treated as securities by Article 2(2) of Financial Instruments and Exchange Law)

Initially recorded at cost and subsequently adjusted to reflect the Company’s share of the net profit or loss of the partnership based on the latest financial reports available.

3.	Depreciation and amortization

(1)

Tangible fixed assets

The Company applies the declining-balance method except for buildings (excluding leasehold improvement) acquired after March 31, 1998, for which the straight-line method is used.

(2)

Intangible fixed assets

The straight-line method is applied. The amortization period of software for internal use (5-10 years) is determined based on estimated internal useful lives.

4.	Deferred assets

Bond issuance cost and stock issuance cost are charged to income when incurred.

5.	Accounting policies for reserves

(1)

Allowance for doubtful accounts

(2)

Reserve for bonuses

Reserve is provided for bonus payments to employees and operating officers at the amount accrued at the end of the period, based on the estimated future payments and service periods.

(3)

Reserve for retirement benefits

Reserve for retirement benefits is provided for future retirement benefits to employees based on actuarial retirement benefits and plan assets at end of year.

Prior service cost is charged to income in the period which the cost is recognized.

(4)

Reserve for retirement benefits for directors, operating officers and corporate auditors

6.	Accounting of lease transactions

Financing leases other than those for which the ownership of leased property transfers to the lessee are accounted for as ordinary rental transactions.

- 19 -

(Mizuho Securities)

7.	Accounting for hedging transactions

Gains or losses resulting from forward foreign exchange transactions entered into in order to hedge the exchange risk of foreign currency denominated equity investments in subsidiaries are deferred when they qualify for hedge accounting.

Borrowings in foreign currency entered into to hedge exchange risk of foreign currency denominated operating investment securities are accounted for under fair value hedge accounting.

Interest rate swaps to hedge interest rate rise of borrowings are, when they qualify for exceptional treatment, accounted for under exceptional method as permitted under Japanese GAAP.

Loans in foreign currencies, with currency swap to hedge the foreign currency risk, are treated as if they were loans in JPY, provided certain conditions are met.

8.	Consumption taxes

Transactions subject to consumption taxes are recorded at amounts exclusive of consumption taxes.

Change in the basis of nonconsolidated financial statement

Application of new depreciation method

The company changed its depreciation method for assets acquired on or after April 1, 2007 to comply with Tax Reform Act 2007 and “the treatment of depreciation for audit purpose at the present stage” (JICPA Audit and Assurance Practice Committee Report No.81, April 25, 2007). The effect on the consolidated financial statements is negligible .

Notes to nonconsolidated balance sheets

1.	Accumulated depreciation of tangible fixed assets


	(Unit: millions of yen)
	As of Mar. 31, 2007	As of Mar. 31, 2008
	7,332	9,266
2. Subordinated debt Bonds, notes, long-term borrowings, and long-term borrowings from affiliates include Subordinated debts provided in Article 176 of “Cabinet Office Ordinance Concerning Financial Instruments Business “ (Cabinet Office Ordinance No.52, 2007), and the amounts are as follows.
	As of Mar. 31, 2007	As of Mar. 31, 2008
Subordinated bonds (Bonds and notes)	40,000	40,000
Subordinated borrowings	138,000	236,000
(Long-term and Short-term borrowings, Long-term borrowings from affiliates)
3. Loan balance as per “Money Lending Business Law” (Law 32, 1983)
	As of Mar. 31, 2007	As of Mar. 31, 2008
	5,000	2,028

- 20 -

(Mizuho Securities)

Notes to nonconsolidated statements of operations

1.	Net profits or losses per share


(Unit: yen)
Year ended Mar. 31, 2007	Year ended Mar. 31, 2008
Year ended Mar. 31, 2007	Year ended Mar. 31, 2008
7,553.61	(100,935.91	)

2.	Details of non-ordinary profits / losses


	(Unit: millions of yen)
	Year ended Mar. 31, 2007	Year ended Mar. 31, 2008
Non-ordinary profits
Gain from sales of investment securities	—	18,442
Gain on liquidation of investment securities	3	—
Release of allowance for doubtful accounts	5	0
Other	—	9

	Year ended Mar. 31, 2007	Year ended Mar. 31, 2008
	Year ended Mar. 31, 2007	Year ended Mar. 31, 2008
Non-ordinary losses
Loss on sale or disposal of fixed assets	107	662
Valuation loss on investment securities	102	4,535
Liquidation loss on investment securities	—	8
Valuation loss on subsidiary stock	—	431,011
Loss on impairment of fixed assets	—	4
Valuation loss on golf membership	—	5
Provision for securities transaction liability reserve	307	—
Provision for futures transaction liability reserve	21	—
Merger-related expenses	—	2,847
Provisions for reserve for retirement benefits for directors and operating officers for past fiscal year	225	—
Others	3	—

Notes to nonconsolidated statements of changes in net assets

Treasury stock:

The Company has no treasury stocks at the end of both previous and this period.

- 21 -

(Mizuho Securities)

Nonconsolidated Financial Data

(for the year ended March 31, 2008)

1.	Commission Income

(1)

Breakdown by categories


	(Unit: Millions of yen)
	Year ended March 31, 2007		Year ended March 31, 2008		Period-to-period comparison (%)
Brokerage commission	8,476		6,274		74.0	%
(Stocks)	(7,889	)	(5,823	)	(73.8	%)
(Bonds)	(563	)	(431	)	(76.5	%)
Underwriting and selling commission	24,831		14,725		59.3	%
(Stocks)	(16,123	)	(4,537	)	(28.1	%)
(Bonds)	(8,321	)	(9,284	)	(111.6	%)
Subscription and distribution commission	1,355		2,145		158.2	%
(Stocks)	(1	)	(866	)	(	—)
(Bonds)	(552	)	(371	)	(67.3	%)
(Investment trusts)	(382	)	(500	)	(130.8	%)
Other commissions received	37,556		36,668		97.6	%

Total	72,221		59,813		82.8	%

(2)

Breakdown by products


	(Unit: Millions of yen)
	Year ended March 31, 2007	Year ended March 31, 2008	Period-to-period comparison (%)
Stocks	28,023	13,976	49.9	%
Bonds	20,910	18,108	86.6	%
Investment trusts	3,703	4,968	134.2	%
Others	19,583	22,759	116.2	%

Total	72,221	59,813	82.8	%

2.	Trading profit / loss


	(Unit: Millions of yen)
	Year ended March 31, 2007		Year ended March 31, 2008		Period-to-period comparison (%)
Stocks	12,953		(12,362	)	—
Bonds	18,405		(26,813	)	—
Others	3,608		12,783		354.2	%
(of which Foreign exchange)	(1,718	)	(13,737	)	(799.5	%)

Total	34,967		(26,393	)	—

3.	Trading volume of stocks (excluding futures transaction)


		(Unit: Millions of stocks, Millions of yen)
		Year ended March 31, 2007				Year ended March 31, 2008				Period-to-period comparison (%)
		No. of stocks		Amount		No. of stocks		Amount		No. of stocks		Amount
Total		14,896		24,915,253		17,131		26,600,589		115.0	%	106.8	%
(Proprietary)	a	(6,153	)	(10,059,930	)	(8,245	)	(12,396,108	)	(134.0	%)	(123.2	%)
(Brokerage)	b	(8,742	)	(14,855,323	)	(8,885	)	(14,204,481	)	(101.6	%)	(95.6	%)

b/(a+b)		58.7	%	59.6	%	51.9	%	53.4	%

TSE share		1.4	%	1.7	%	1.5	%	1.7	%

- 22 -

(Mizuho Securities)

4.	Volume of underwriting, subscription and distribution


			(Unit: Millions of stocks, Millions of yen)
			Year ended March 31, 2007	Year ended March 31, 2008	Period-to-period comparison (%)
Underwriting	Stocks	(No. of stocks)	499	55	11.1	%
	Stocks	(Amount)	500,346	92,939	18.6	%
	Bonds	(Face amount)	4,664,939	4,990,986	107.0	%

Subscription and distribution*	Stocks	(No. of stocks)	492	57	11.6	%
	Stocks	(Amount)	963,788	445,429	46.2	%
	Bonds	(Face amount)	2,286,959	2,691,427	117.7	%
	Investment trusts	(Face amount)	780,188	735,138	94.2	%

*	Including selling and distribution of private placement.

5.	Capital adequacy ratio


			(Unit: Millions of yen)
			As of March 31, 2007		As of March 31, 2008
Basic capital		(A)	363,602		325,742
Supplementary Capital	Unrealized gain on other securities, net of taxes		26,020		409
	Statutory reserves		2,027		2,027
	Allowance for doubtful accounts		5		4
	Long-term subordinated debt		89,000		153,000
	Short-term subordinated debt		89,000		123,000

	Total	(B)	206,053		278,441

Deduction: Disallowed assets		(C)	231,357		228,333

Capital after deduction	(A)+(B)–(C)	(D)	338,298		375,849

Amount of risks	Market risk		95,718		90,833
	Counterparty risk		11,890		21,171
	Basic risk		20,926		28,802

	Total	(E)	128,535		140,808

Capital adequacy ratio	(D)/(E)		263.1	%	266.9	%


(note)		1. Market risk is calculated with internal market risk model.

		2. Details of long-term and short-term subordinated debts are as below:

(Unit: Millions of yen)

Date of issue/borrowing

Maturity/Due date

Amount

Short/Long

Notes

Subordinated bonds

March 19, 2004

March 19, 2009

40,000

Short-term

Lump sum

Subordinated borrowings

March 19, 2004

March 19, 2009

11,000

Short-term

Final payment

March 29, 2005

April 20, 2015

20,000

Long-term

Lump sum

May 30, 2006

May 30, 2016

10,000

Long-term

Lump sum

May 30, 2006

March 31, 2010

5,000

Short-term

Installment

March 31, 2011

5,000

March 31, 2012

5,000

2,000

Short-term

3,000

Long-term

March 31, 2013

15,000

3,000

Short-term

Final payment

12,000

Long-term

September 28, 2006

September 28, 2010

5,000

Short-term

Installment

September 28, 2011

5,000

September 28, 2012

5,000

1,000

Short-term

4,000

Long-term

September 28, 2013

15,000

Final payment

January 31, 2007

January 31, 2011

5,000

Short-term

Installment

January 31, 2012

5,000

January 31, 2013

5,000

1,000

Short-term

4,000

Long-term

January 31, 2014

15,000

Long-term

Final payment

July 20, 2007

July 20, 2011

5,000

Short-term

Installment

July 20, 2012

5,000

July 20, 2013

5,000

Long-term

July 20, 2014

35,000

Final payment

March 28, 2008

April 28, 2013

10,000

Long-term

Installment

April 28, 2014

10,000

April 28, 2015

10,000

Final payment

March 28, 2008

February 28, 2012

10,000

Short-term

Installment

February 28, 2013

15,000

Final payment

Long-term subordinated debts total

153,000

Short-term subordinated debts total

123,000

6.	Number of directors, corporate auditors and employees


	(Unit: Person)
	As of March 31, 2007	As of March 31, 2008
Directors and corporate auditors	9	9
Employees	1,775	1,852

- 23 -

(Mizuho Securities)

(Reference Data)

Quarterly Trends in Nonconsolidated States of Operations


	(Unit: Millions of yen)
Descriptions	Three months ended Mar. 31, 2007		Three months ended Jun. 30, 2007	Three months ended Sep. 30, 2007		Three months ended Dec. 31, 2007		Three months ended Mar. 31, 2008
Operating Revenues	38,349		42,446	15,290		26,718		9,460
Commission	19,319		14,109	15,402		12,227		18,074
Trading profits (losses)	8,846		18,213	(16,132	)	1,022		(29,496	)
Net gains (losses) on operating investment securities	(3	)	937	3,311		(843	)	2,220
Interest and dividend income	10,187		9,185	12,710		14,311		18,662
Interest expense	7,233		8,752	10,027		12,297		13,122

Net operating revenues (losses)	31,116		33,693	5,263		14,420		(3,661	)

Selling, general and administrative expenses	20,035		20,805	20,004		19,172		19,986
Commissions and other transaction-related expenses	4,753		5,572	6,700		4,838		4,544
Compensation and benefits	8,012		8,002	6,214		6,791		7,006
Occupancy	3,324		3,639	3,362		3,923		4,197
Data processing and office supplies	1,592		1,449	1,545		1,166		1,244
Depreciation	1,075		1,077	1,193		1,474		1,740
Amortization of goodwill	60		15	15		15		15
Taxes and dues other than income taxes	459		489	343		482		697
Others	758		558	630		480		541

Operating profits (losses)	11,080		12,888	(14,741	)	(4,751	)	(23,648	)

Non-operating revenues	1,120		9,351	207		306		923
Non-operating expenses	932		1,016	1,214		1,812		2,125

Ordinary profits (losses)	11,268		21,223	(15,748	)	(6,258	)	(24,850	)

Non-ordinary profits (losses)	0		6	(0	)	18,362		83
Non-ordinary losses	335		187	460		191,379		247,047

Profits (losses) before income taxes	10,933		21,042	(16,209	)	(179,275	)	(271,813	)

Income taxes—current	6,114		6,798	(6,475	)	771		(116	)

Income taxes—deferred	(2,138	)	962	(126	)	(1,619	)	(8,591	)

Net profits (losses)	6,957		13,280	(9,607	)	(178,427	)	(263,106	)

- 24 -

Mizuho Securities Co., Ltd.

[Reference] Breakdown of securitization products (Mizuho Securities (including overseas subsidiaries))


	(JPY Bn, round figures) [Managerial accounting basis]	Balances as of Dec. 31, 2007	Balances as of Mar. 31, 2008		Marks (%) as of Mar. 31, 2008	Realized Gains/Losses for FY2007
		(Fair Value)	(Fair Value)		(=Fair Value/Face Value)
1	Foreign currency denominated securitization products	470		100	22	-404
2	ABSCDOs (*1)	280		50	18	-235
3	CDOs backed by RMBS	160	(*2)	20	10	-220
4	Hedged by CDS with a non-investment grade financial guarantor	30		10	17	-54
5	CDOs except above	110		30	83	-15
6	CDOs backed by CMBS	0		0	8	-4
7	Hedged by CDS with a non-investment grade financial guarantor	80		0	—	-10
8	RMBS	180		50	27	-164
9	RMBS backed by US subprime mortgage loans	30		15	31	-35
10	RMBS except above (RMBS backed by mid-prime loans, prime loans and others)	150		35	26	-129
11	ABS, CLOs and others	20		0	67	-5
12	CMBS	10		0	43	-3
13	Foreign currency denominated securitization products + JPY denominated securitization products			350		-413

(*1)	CDO exposures hedged by CDS with a non-investment grade US financial guarantor (monoline), net of allowances, listed in line 4 and 7, are included

(*2)	The proportion of US subprime mortgage related assets to the total underlying assets was approximately 20%