Human capital management

One of the most indispensable forms of capital for business is human capital. Even as the relationship between employers and employees shifts with the changing times and business environment, the need for companies to secure a sufficient number of qualified professionals is a constant. Under the revised Corporate Identity, we are aiming to continuously help our people—the source of our corporate value—to develop their skills and careers. With this goal, we have already begun moving towards a new HR framework in Japan, and we plan to transition fully in fiscal 2024. One of our main aspirations in designing the new framework was to ensure a harmony between the organization and individual employees, enabling collaborative creative input. Accordingly, we are calling the new framework "CANADE", a reference to the Japanese word for the beautiful harmony musicians create when they play together in concert.

The HR system under CANADE will be a unified platform covering five of our group companies,* previously unseen in either the financial or other industries. Employees will be able to transfer between companies based on business area, allowing for optimal allocation and rigorous development of personnel. In order to execute our strategies, we will continue disciplined optimization across the overall organization. Along with this, we will thoroughly implement strategic HR that allows each business area to take the lead on its own HR management, including in aligning compensation with promotion, roles, and results.

At the foundation of our HR under CANADE will be employees' narratives. We believe our people will be able to maximize their latent potential if they take their own individuality as a starting point towards building their own career paths. In addition, we will strive to improve support for them and give them a greater sense of purpose.

CANADE will further develop the talent that supports our business while also enabling each person to demonstrate their individuality and skills. In this way, it will be an integral part of our deep commitment to serving client needs, enabling our people to flourish, and helping to improve society and the communities where we do business. We will proactively innovate together with our colleagues to enhance our human capital and achieve a prosperous and sustainable future.

* Mizuho Financial Group, Mizuho Bank, Mizuho Trust & Banking, Mizuho Securities, and Mizuho Research & Technologies.

The new Corporate Identity and CANADE

Structure for HR management

Important matters of HR management are deliberated by the business execution line and supervised by the Board of Directors. The Group CHRO is responsible for HR strategy and human capital policy, planning and facilitating HR management initiatives for the overall group. The Group Chief People Officer (Group CPO), a position established in May 2022, promotes talent and organizational development and diversity, equity, and inclusion as part of HR management. The Group CHRO and Group CPO work together to enhance our human capital.

Human capital KPIs

1. Digital Transformation Skills Certification Lv. 4 (equivalent to Level 3 or above in the Skill Standards for IT Professionals of the Information Technology Promotion Agency, Japan; able to perform all assigned duties and lead
   projects independently; program launched in FY2023).
2. Digital Transformation Skills Certification Lv. 2 (equivalent to Level 1 or above in the Skill Standards for IT Professionals of the Information Technology Promotion Agency, Japan; has the basic minimum knowledge required
   to promote digital transformation; program launched in FY2023).
3. Certified Skilled Professionals of Financial Planning 1st-grade or Certified Financial Planners (international certification).
4. In-house certified personnel (program launched in FY2023).
5. In-house certified personnel able to support startups/innovative companies (program launched in FY2023).
6. New international assignees from Japan.
7. Based on the positive response rate (selection of 4 or 5 on a scale from 1 to 5) for four Staff Survey questions related to engagement and inclusion.