In fiscal 2010, the final year of our 10th three-year mediumterm business plan "Dream TEN - New Challenges," we made a concerted effort to achieve our vision of "Nurturing the dreams of everyone in the region and growing as a comprehensive financial group." In addition, to create business that enhances our growth, we pursued our three basicstrategies of: 1) establishing the solid operational base required to achieve sustained growth in tandem with the region, 2) achieving a group management capable of high productivity and 3) establishing the "Shizugin" brand. Under our fundamental principle of "growing our dreams and prosperity together with the region," we worked hard to provide financial services that contribute to the development of the region’s economy, industry, society, and culture to fulfill our social responsibility and public mission as a Bank. In the area of corporate banking, we promoted regional finance, the Shizuoka Bank Group’s specialty, based on the three core pillars, 1) "business matching," which supports our customer’s business expansion by increasing their sales channels, 2) "Shizuginship," our learning and networking opportunity for younger managers, who will contribute to for the community’s future, and 3) "support for management improvement and business revitalization" to stabilize the region’s economy.

  As a result, in fiscal 2010, we achieved a loan market share of 30% in Shizuoka Prefecture, which was one of the targets in our 10th medium-term business plan, and we recorded our second consecutive year increase in both ordinary profit and net income.

  I want to express my sincere appreciation for our customers and shareholders because the results in 2010 were due entirely to their support.

In April 2011, we began our 11th medium-term business plan, "MIRAI - Future," which seeks to make the best use of the business foundation established in the 10th medium-term business plan and embarked on a new stage of growth. The plan sets out to fulfill the Bank’s vision of becoming "A comprehensive financial group that goes along with customers to open up a future with the region" by promoting balance between its three basic strategies: 1) grow through innovation and problem-solving ability, 2) build a robust operating structure with high productivity, and 3) increase the value of the Shizugin brand.

  We established the following declaration of action that expresses how we should act in order to fulfill our vision, "We always try to be the best partner for customers, so that we can contribute to regional development and growth for the future." Most importantly, the Bank, a regional financial institution, is in the service industry and cannot survive without winning the trust of its customers. Let us once again return to these roots and under this declaration of action become "the Shizugin Bank Group, advancing together with the region" and fostering a greater sense of unity with the regional community.

In the environment surrounding the Bank, amid the urgent tasks of recovery and reconstruction in the aftermath of the Great East Japan Earthquake, structural changes, such as an aging population with declining birthrate, are taking place in a wide range of social domains. In addition to political disarray, we now stand at a time in which we can no longer see a bright future. Nevertheless, it is precisely at times like these that we must face difficulties with courage and believe that there are endless options for everything. That we persist in our efforts to open up new possibilities is more important than anything.

  To deal with the structural changes of the regional community, the Shizuoka Bank has already formed business alliances with banks in Thailand, Indonesia, and Vietnam and has strengthened its support system for regional companies entering the Asian market. Moreover, we have started a "growth area support project," which supports efforts in new fields that have a bearing on the region’s economic future, such as medicine, nursing care, the environment, and agriculture. The Bank will continue to take on bold challenges to grow with the region and with its customers over the next 10 to 20 years and beyond under its new medium-term business plan.

  We look forward to your continued support.