Mizuho Financial : Presentation material –Progress of business improvement plan

Progress of the Business Improvement Plan

January 13, 2023

Mizuho Financial Group, Inc.

Mizuho Bank, Ltd.

Table of Contents

1.	Progress of the business improvement plan	p. 3
	and achievements
2.	Prevention of system failures	p. 4
3.	Enhancement of system failure response	p. 5
	capabilities
4.	Utilization of feedback from customers and
	employee's voices, and the reformation of	p. 6
	corporate culture
5. Governance	p. 7

2

Progress of the business improvement plan and achievements

• Regarding progress of the improvement plan, the materialization of measures (including various inspections) and the operations are almost completed, and it is confirmed that the structure for continued improvement process is established and it is autonomously started to take root.
• To ensure continued operations, initiatives will be taken to make them as institutional response and to maintain effectiveness.

Current status

			End of FY22
Materialization and
implementation of the	Operations	Addressed continuously
measures

• Establishing a structure for taking responsive actions, with • operations to be completed by the end of FY22

• Prevention of system failure (maintenance and inspection)
• Enhancement of system failure response capabilities (prompt initial response), etc.

• Prevention of large-scale system failures

Initiatives to maintain effectiveness:

• Awareness: Constant initiatives not to let memory fade away and autonomous operations
• Knowledge: Organizational knowledge building and intelligent base expansion to each employee
• Wisdom: Sustainable achievements of both effectiveness and efficiency

3

Prevention of system failures

• Inspections are being steadily implemented without delay and are planned to be completed by the end of FY22.
• The approach for planning and promoting measures based on an understanding of the actual situation of the frontlines and personnel management is also well recognized and managed.

	System maintenance				IT governance
		Actions/points to be	Key points for			Actions/points to be	Key points for
		improved	continuous initiatives			improved	continuous initiatives
							Dissemination of
		Prevention of system
	Preventive					personnel management
	failures				Understanding	Accumulation of	Fostering a culture
	maintenance	200 additional preventive
				the frontline	employees' opinions and
				and an environment
		replacements*1
		Continued		situation/	the full-scale
				that promote
				Personnel	implementation of the
			inspections through		continuous
		Prompt response for		management	improvement cycle
		effective and efficient		improvements in an
	Operation			1,200 staff interviews
	recovery	approaches			40 management-frontline	autonomous manner
	verification	Completed for major 81			dialogues
	Continued				based on
		systems*2
		improvement of				environmental
					Timely reflection in the
			inspection methods		Governance	changes and
		System resource		allocation of management
					technological
					supporting	resources
	Application	enhancement and
				Enhancement of failure	progress
	inspection	monitoring				the above
				analysis
		improvement

• Preventing large-scale failures through predictive management, resource enhancement, etc.

- Realizing smooth failure detection and recovery measures in the inspected IT systems

*1 Preventive replacement of disc etc based on detected sign found through inspection *2 Inspection to find problems or things to be improved of system behavior at the time of switching to back-up

4

Enhancement of system failure response capabilities

• Establishment of structure for prompt, initial response and enhancement of failure response capabilities through a visualization of systems and operations
• Enhancement of ATM failure response capabilities

~installation of cameras with speakers at ATMs and improved specifications for capturing bankbooks and cards~

Prompt initial response

Enhancement of ATM failure response capabilities

	Actions/points to be	Key points for
	improved*1	continuous initiatives
Initial alert from	Generally, within 30
minutes
the detection of	Visualization of
Target range: Within 1
system failures	system configuration
hour
	and operation flows
		Making deliverables
		organizational
Number of system		knowledge and the
failures that	2 transactions	enhancement of
caused	frontline capabilities
Feb 28, 2021~FY21:
transactions to be
7 transactions
processed on the
next day*3

	Actions/points to be	Key points for
	improved*1	continuous initiatives
Number of	24 units at
maximum*2
ATMs out of
Feb 28, 2021:
service	Improvement of ATM
4,318 units
	functions
		- Installation of cameras
		with speakers at all ATM
		sites
Number of		- Improvement of cash
cases of	0 cases	capturing specifications
bankbooks/	Feb 28, 2021:
cards being	5,244 cases
captured

*1 Actual result of Apr-Dec FY22 *2 Nov 30, 2022: Impact of external line network failure; restored within 14 minutes after the line switchover *3 Number of domestic system failures that resulted in transactions that should have been processed on the current day but that were processed on the following day in part, including transactions in progress, etc. Number of affected transactions is decreased from few thousands to less than hundred.

5