Business Reorganization

RNS Number:6369E
Mizuho Holdings Inc
4 December 2002


                      OUTLINE OF "BUSINESS REORGANIZATION"
                       TO REFORM THE MIZUHO FINANCIAL GROUP

On November 25, 2002, the Mizuho Financial Group announced the "Mizuho Change &
Speed-Up Program" to change and accelerate the deployment of business strategies
and  to  accelerate cost structure reforms primarily of the core subsidiaries
including Mizuho Bank, Ltd. ("MHBK"), Mizuho Corporate Bank, Ltd. ("MHCB") and
securities and trust subsidiaries.

In accordance with the purpose of the "Program for Financial Revival" issued by
the Financial Services Agency, as well as in order to cope with the recent
severe business environment, we hereby announce that the Mizuho Financial Group
will implement the program described below titled "Business Reorganization."

Through the "Business Reorganization," we  will reform the group strategy
drastically in order to enhance our competitiveness, secure high-level and
stable profitability and maximize the corporate value on a group basis.

The reorganization of the management structure (which is scheduled in March 
2003) is subject to the appropriate regulatory approval and other procedures in
Japan and all related countries.


                   Framework of the "Business Reorganization"

1. Further reinforcement of comprehensive financial services capabilities

  (1) Establish a new financial holding company named "Mizuho Financial Group,
      Inc." ("MHFG") (provisional name) in order to dramatically improve the
      comprehensive financial services capabilities of the group.

  (2) Place the existing holding company as an intermediate holding company for
      the group's banks and securities subsidiaries to strengthen the 
      synergistic cooperation between MHBK and MHCB, as well as between the 
      banking and securities subsidiaries according to customer segments.

  (3) Strategically reorganize trust, asset management, and custody business
      subsidiaries and place these companies directly under the new financial 
      holding company.


2. Acceleration of non-performing loan ("NPL") disposal and aggressive pursuit
   of the corporate revival business based on the purpose of the Program for 
   Financial Revival

   (1) Further tighten assessment of assets by elaborating the self-assessment
       standard

   (2) Promptly conduct disposition or revival of the NPLs that are classified 
       as "need special attention" or below by separating these NPLs from the 
       group's banking sector through the utilization of a separate entity and/
       or framework for corporate revival.


3. Further reinforcement of financial strength

   (1) Raise capital through the market in order to further reinforce the 
       financial strength.

   (2) Make a conservative review of deferred tax assets based on risk 
       scenarios.


4. Strict implementation of the "Mizuho Change & Speed-up Program" (announced
   on November 25)



1. Further reinforcement of comprehensive financial services capabilities

   (1) Establish a new financial holding company named "Mizuho Financial Group,  
       Inc." ("MHFG") (provisional name) in order to dramatically improve
       the comprehensive financial services capabilities of the group.

      a) In addition to the existing group management framework centered on the
         four core subsidiaries, MHFG will directly manage other primary
         subsidiaries, enhance groupwide synergy and strengthen its  
         profitability swiftly.

      b) MHFG will realize the consolidation effects promptly  by  strengthening
         cost competitiveness through consolidation of the group's affiliates  
         and utilization of a common infrastructure, etc.

          *  Promptly consolidate system related subsidiaries and asset 
             management subsidiaries.

          *  Further expand the earning base in such growing  business areas as
             credit card and asset management businesses, and promote various
             measures such as utilization of the group's think-tank functions 
             and common IT infrastructure.

   (2) Place the existing holding company as an intermediate holding company for
       the group's banks and securities subsidiaries to strengthen the    
       synergistic cooperation between MHBK and MHCB, as well as between the
       banking and securities subsidiaries according to customer segments.

       a) In conjunction with the establishment of MHFG, Mizuho Holdings, Inc.
          ("MHHD") will be reformed as an intermediate holding company to manage
          the banking and securities business sector.

          *  The intermediate holding company will be devoted to further 
             strengthen synergistic cooperation between MHBK and MHCB, as well  
             as between the banking and securities subsidiaries.

       b) According  to customer segments, Mizuho Securities Co., Ltd. ("MHSC")
          will be placed under MHCB, and Mizuho Investors Securities Co., Ltd.
          ("MISC") will be placed under MHBK.

       c) MHSC will transfer its retail business to MISC.

          *  MHFG will request to revise the Article 65 of the Securities and
             Exchange Law to enable MHBK and  MISC, and MHCB and MHSC,
             respectively, to merge to enhance customer convenience.

       d) A joint marketing relationship with Shinko Securities Co, Ltd. has
          already been established for underwriting business.

   (3) Strategically reorganize trust, asset management, and custody business 
       subsidiaries and place these companies directly under the new financial 
       holding company.

       a) Unify the trust banking business, and centralize the management of the
          group's trust and asset management sector including Trust & Custody
          Services Bank, Ltd. ("TCSB") and asset management subsidiaries.

          *  Mizuho Trust & Banking Co., Ltd. ("MHTB") and Mizuho Asset Trust &
             Banking Co., Ltd. ("MHAT") will be merged after placing MHTB, a
             currently wholly owned subsidiary of MHHD, under MHFG.

          *  MHTB will secure its existing high credit rating.

          *  MHAT will separate and remove its NPLs that are classified as "need
             special attention" or below and accelerate the final disposition,
             utilizing a separate entity and/or framework for corporate revival.
        
          *  TCSB will be placed as a direct subsidiary under MHFG in order to
             clarify its position as a common vehicle for asset management
             business for the group, and provide high quality financial services
             to customers not only for the group companies but also for 
             non-group companies.

2. Acceleration of NPL disposal and aggressive pursuit of the corporate revival
   business based on the purpose of the Program for Financial Revival

   (1) Further tighten assessment of assets by elaborating the self-assessment
       standard.

       a) Elaborate the self-assessment standard based on the "Framework of the 
          New Financial Administration" included in the Program for Financial 
          Revival.

          *  Elaborate the self-assessment standard, including application of
             Discounted Cash Flow type methods to large borrowers who are
             classified as "need special attention."

   (2) Promptly conduct disposition or revival of the NPLs that are classified 
       as "need special attention" or below by separating these NPLs from the 
       group's banking sector through the utilization of a separate entity 
       and/or framework for corporate revival.

       a) MHBK, MHCB and MHAT will separate and remove NPLs that are classified
          as "need special attention" or below and accelerate their final
          disposition and corporate revival.

       b) Pursue early termination of the NPL issue, utilizing a separate entity
          and/or framework for corporate revival.

       c) Make a prompt assessment of NPLs as to the possibility of revival and
          accelerate disposition or support by strengthening cooperation with
          Resolution and Collection Corporation, Corporate Revivals Organization
          and other corporate reconstruction funds.

          *  Having separated and removed NPLs, MHBK, MHCB and MHAT will
             further strengthen their fund providing function in their 
             respective marketplaces.


3. Further reinforcement of financial strength

   (1) Raise capital through the market in order to further reinforce the
       financial strength. 

       a) MHFG will raise the capital necessary for this reorganization through 
          the market.

   (2) Make a conservative review of deferred tax assets based on risk 
       scenarios.

       a) Based on the "Framework of the New Financial Administration" included
          in the Program for Financial Revival, MHFG will review its deferred 
          tax assets, estimating the taxable income conservatively based on risk
          scenarios. 

          *  Partially withdraw deferred tax assets.


4. Strict implementation of the "Mizuho Change & Speed-up Program"

   On November 25, 2002, the Mizuho Financial Group announced the "Mizuho
   Changing & Speed-up Program" including cost structure reforms and  
   strengthening of corporate governance as follows:

   (1) Principal restructuring plans

       a) Decrease in the number of board members, executive officers and
          employees and salary cut 

          *  Additional decrease in the number of board members and executive
             officers (-20%), and 30% cut in yearly compensation 

          *  Reduction of 6,300 employees, and average 10% cut in annual 
             compensation

       b) Reduction of domestic branches and overseas offices

          *  Reduction of 120 domestic branches - 460 branches as of March 2004
             (30% reduction compared with march 1999)

          *  Reduction of 13 overseas offices - 43 offices as of March 2004 (60%
             reduction compared with March 1999)

   (2) Strengthening of corporate governance

       a) Achieve a management structure that is slim and speedy.
       
          *  Reduction in the number of board members and executive officers by 
             20%

       b) Secure transparency in management and clear accountability. 
  
          *  Increase in the number of outside directors



             For Inquiries:
  
                    Public Relations
                    Mizuho Holdings, Inc.
                    Phone:  81-3-5224-2026




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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